Investors face another Washington deadline

NEW YORK (Reuters) - Investors face another Washington-imposed deadline on government spending cuts next week, but it's not generating the same level of fear as two months ago when the "fiscal cliff" loomed large.

Investors in sectors most likely to be affected by the cuts, like defense, seem untroubled that the budget talks could send stocks tumbling.

Talks on the U.S. budget crisis began again this week leading up to the March 1 deadline for the so-called sequestration when $85 billion in automatic federal spending cuts are scheduled to take effect.

"It's at this point a political hot button in Washington but a very low level investor concern," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. The fight pits President Barack Obama and fellow Democrats against congressional Republicans.

Stocks rallied in early January after a compromise temporarily avoided the fiscal cliff, and the Standard & Poor's 500 index <.spx> has risen 6.3 percent since the start of the year.

But the benchmark index lost steam this week, posting its first week of losses since the start of the year. Minutes on Wednesday from the last Federal Reserve meeting, which suggested the central bank may slow or stop its stimulus policy sooner than expected, provided the catalyst.

National elections in Italy on Sunday and Monday could also add to investor concern. Most investors expect a government headed by Pier Luigi Bersani to win and continue with reforms to tackle Italy's debt problems. However, a resurgence by former leader Silvio Berlusconi has raised doubts.

"Europe has been in the last six months less of a topic for the stock market, but the problems haven't gone away. This may bring back investor attention to that," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

OPTIONS BULLS TARGET GAINS

The spending cuts, if they go ahead, could hit the defense industry particularly hard.

Yet in the options market, bulls were targeting gains in Lockheed Martin Corp , the Pentagon's biggest supplier.

Calls on the stock far outpaced puts, suggesting that many investors anticipate the stock to move higher. Overall options volume on the stock was 2.8 times the daily average with 17,000 calls and 3,360 puts traded, according to options analytics firm Trade Alert.

"The upside call buying in Lockheed solidifies the idea that option investors are not pricing in a lot of downside risk in most defense stocks from the likely impact of sequestration," said Jared Woodard, a founder of research and advisory firm condoroptions.com in Forest, Virginia.

The stock ended up 0.6 percent at $88.12 on Friday.

If lawmakers fail to reach an agreement on reducing the U.S. budget deficit in the next few days, a sequester would include significant cuts in defense spending. Companies such as General Dynamics Corp and Smith & Wesson Holding Corp could be affected.

General Dynamics Corp shares rose 1.2 percent to $67.32 and Smith & Wesson added 4.6 percent to $9.18 on Friday.

EYES ON GDP DATA, APPLE

The latest data on fourth-quarter U.S. gross domestic product is expected on Thursday, and some analysts predict an upward revision following trade data that showed America's deficit shrank in December to its narrowest in nearly three years.

U.S. GDP unexpectedly contracted in the fourth quarter, according to an earlier government estimate, but analysts said there was no reason for panic, given that consumer spending and business investment picked up.

Investors will be looking for any hints of changes in the Fed's policy of monetary easing when Fed Chairman Ben Bernake speaks before congressional committees on Tuesday and Wednesday.

Shares of Apple will be watched closely next week when the company's annual stockholders' meeting is held.

On Friday, a U.S. judge handed outspoken hedge fund manager David Einhorn a victory in his battle with the iPhone maker, blocking the company from moving forward with a shareholder vote on a controversial proposal to limit the company's ability to issue preferred stock.

(Additional reporting by Doris Frankel; Editing by Kenneth Barry)

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Josh Brolin & Diane Lane: Inside Their Up-and-Down Marriage

By Dahvi Shira

02/22/2013 at 07:30 AM EST

Diane Lane and Josh Brolin

Steve Granitz/Wireimage

Josh Brolin and Diane Lane's eight-year marriage is ending in divorce, but the road wasn't always rocky for the occasionally tumultuous pair.

"We're very similar in that celebrity is not a necessity," Brolin, 45, told PEOPLE in 2003, after meeting his soon-to-be-bride, 48, the previous year through stepmom Barbra Streisand. "Everything is easy."

The simplicity seemingly continued for Brolin and his beauty, who wed the following year in a ceremony at the actor's central California ranch.

Though there was a bit of a rocky start to their marriage, the pair got on track in 2005. As Lane told PEOPLE at the time, "I feel much better having a strong man with me who makes me feel embraced and secure. It's wonderful."

With her first marriage to actor Christopher Lambert behind her, Lane went on to say, "I wasn't going to go relationship shopping with my young daughter. I didn't want her to get attached to something that wasn't going to last."

In 2008, Lane praised Brolin, telling Redbook: "It's just invigorating to be around him. Josh completes me because I'm so attracted to his otherness."

On Thursday, reps confirmed the pair split, with a source telling PEOPLE, "They've been separated for several months. This was a hard decision for both of them to make. They were together for 11 years, the relationship just ran its course."

News of the breakup came almost two months after Brolin was held for public intoxication just before midnight on New Year's Eve 2013. Released without charge, the actor was spotted without his wedding ring the following day, donning sunglasses, in Venice, Calif., where he seemed unfazed by the trouble as he ate with a male friend at Sauce on Hampton.

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Stock futures rise after HP earnings, German data

NEW YORK (Reuters) - Stock index futures rose on Friday, indicating the S&P 500 may halt a two-day losing skid, boosted by positive economic data from Europe and better-than-expected earnings from Hewlett-Packard.

The S&P 500 <.spx> has dropped 1.9 percent over the past two sessions, its worst two-day drop since early November, putting the index on pace for its first weekly decline of the year. The retreat was triggered by minutes from the Federal Reserve's January meeting released earlier in the week which suggested stimulus measures may end earlier than thought.

Still, the index is up more than 5 percent for the year and has held the 1,500 support level.

Hewlett-Packard Co climbed 4.7 percent to $17.90 in premarket trading after the No. 1 personal computer maker's quarterly revenue and forecasts beat Wall Street expectations as it continued to cut costs under CEO Meg Whitman's turnaround plan.

The German Ifo business climate indicator for February rose to 107.4, its best one-month rise in more than two years, boosting optimism after Thursday's disappointing PMI data stoked concerns over the euro zone economy.

S&P 500 futures rose 6.4 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures gained 28 points, and Nasdaq 100 futures added 10.5 points.

Insurer American International Group Inc reported fourth-quarter results that beat analysts' expectations, although Chief Executive Robert Benmosche said some employee bonuses will be smaller this year because the company did not meet all of its performance targets. Shares advanced 3.8 percent to $38.68 in premarket trading.

Marvell Technology Group Ltd rose 4.5 percent to $9.90 in premarket trade after the chipmaker forecast results this quarter that were largely above analysts' expectations as it gained market share in the hard-disk drive and flash-storage businesses.

Fellow chipmaker Texas Instruments Inc raised its quarterly dividend by a third and said it would buy back an additional $5 billion in stock.

According to Thomson Reuters data through Thursday morning, of 427 companies in the S&P 500 that have reported results, 69.3 percent have exceeded analysts' expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters.

Fourth-quarter earnings for S&P 500 companies are estimated to have risen 5.9 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

European shares advanced after the better-than-expected German survey, with the pan-European FTSEurofirst 300 index <.fteu3> up 1.1 percent. <.eu/>

Asian shares recouped some of the previous session's steep falls as investors reassessed concerns that the Federal Reserve may end its ultra-soft monetary policy earlier than expected, but weak U.S. and European data capped Friday's recovery.

(Editing by Bernadette Baum)

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Cameroon, Nigeria officials deny French hostages freed

YAOUNDE (Reuters) - The fate of seven French tourists seized in Cameroon by suspected Nigerian Islamist militants was unclear on Thursday after government officials denied French media reports that they had been freed.

The hostages, four children and three adults, were captured this week while on an excursion to the Waza national park near Cameroon's border with Nigeria.

Several French media reported earlier on Thursday that the hostages had been found alive in a house in northern Nigeria and freed.

"The hostages are safe and sound and are in the hands of Nigerian authorities," BFMTV quoted a Cameroon army officer as saying.

"This is a crazy rumor that we cannot confirm. We do not know where is it coming from," Cameroon Communications Minister Issa Tchiroma Bakary said by telephone from the capital Yaounde.

Sagir Musa, a spokesman for Nigeria's military, told Reuters the report was "not true."

Kader Arif, France's minister for veterans' affairs, told parliament on Thursday that the seven hostages had been released but retracted his statement minutes later, saying he had been quoting media reports and there was no official confirmation.

It was the first case of foreigners being seized by suspected Islamist militants in the mainly Muslim north of Cameroon, a former French colony.

The region is seen as being within the operational sphere of Nigerian sect Boko Haram and another Islamist militant group, Ansaru.

The threat to French nationals in the region has grown since France deployed thousands of troops to nearby Mali to root out al Qaeda-linked Islamists who took control of the country's north last year.

The kidnapping in Cameroon brought to 15 the number of French citizens being held in West Africa.

French diplomatic sources said the government would not confirm the hostages had been released until it had physical proof, or until they were in French hands.

(Reporting By Emile Picy and Nicholas Vinocur in Paris; Additional reporting by Joe Brock in Abuja and Bate Felix and John Irish in Dakar; Editing by Pravin Char and Tom Pfeiffer)

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Lou Myers, A Different World Actor, Dies

By Tim Nudd

02/21/2013 at 08:25 AM EST

TV, film and stage actor Lou Myers, best known for playing Mr. Gaines on the sitcom A Different World in the '80s and early '90s, has died at 77.

Myers passed away at the Charleston Area Medical Center in his native state of West Virginia after battling pneumonia for several months, TMZ.com reported.

Myers was born in Chesapeake, W.V., the son of a Cabin Creek coal miner, according to the Charleston Gazette. After attending West Virginia State University, he got his first acting break as an understudy in the Broadway play The First Breeze of Summer.

He went on to appear in more than a dozen films, including How Stella Got Her Groove Back and The Wedding Planner.

On television, he had roles on ER, JAG and NYPD Blue, but is best remembered for playing Vernon Gaines on A Different World, which was a spin-off from The Cosby Show.

On Broadway, Myers appeared in productions including Oprah Winfrey's The Color Purple and Cat on a Hot Tin Roof. He won an NAACP Image Award for his portrayal of the Stool Pigeon in the play King Hedley II.

An accomplished piano player, Myers also sang jazz and blues with the touring company of Negro Music in Vogue.

He is survived by his mother, Dorothy Jeffries, 95, a son, Melvin Myers, and two grandsons, Brayden and Christian, the Gazette said.

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Adults get 11 percent of calories from fast food

ATLANTA (AP) — On an average day, U.S. adults get roughly 11 percent of their calories from fast food, a government study shows.

That's down slightly from the 13 percent reported the last time the government tried to pin down how much of the American diet is coming from fast food. Eating fast food too frequently has been seen as a driver of America's obesity problem.

For the research, about 11,000 adults were asked extensive questions about what they ate and drank over the previous 24 hours to come up with the results.

Among the findings:

— Young adults eat more fast food than their elders; 15 percent of calories for ages 20 to 39 and dropping to 6 percent for those 60 and older.

— Blacks get more of their calories from fast-food, 15 percent compared to 11 percent for whites and Hispanics.

— Young black adults got a whopping 21 percent from the likes of Wendy's, Taco Bell and KFC.

The figures are averages. Included in the calculations are some people who almost never eat fast food, as well as others who eat a lot of it.

The survey covers the years 2007 through 2010 and was released Thursday by the Centers for Disease Control and Prevention. The authors couldn't explain why the proportion of calories from fast food dropped from the 13 percent found in a survey for 2003 through 2006.

One nutrition professor cast doubts on the latest results, saying 11 percent seemed implausibly low. New York University's Marion Nestle said it wouldn't be surprising if some people under-reported their hamburgers, fries and milkshakes since eating too much fast food is increasingly seen as something of a no-no.

"If I were a fast-food company, I'd say 'See, we have nothing to do with obesity! Americans are getting 90 percent of their calories somewhere else!'" she said.

The study didn't include the total number of fast-food calories, just the percentage. Previous government research suggests that the average U.S. adult each day consumes about 270 calories of fast food — the equivalent of a small McDonald's hamburger and a few fries.

The new CDC study found that obese people get about 13 percent of daily calories from fast food, compared with less than 10 percent for skinny and normal-weight people.

There was no difference seen by household income, except for young adults. The poorest — those with an annual household income of less than $30,000 — got 17 percent of their calories from fast food, while the figure was under 14 percent for the most affluent 20- and 30-somethings with a household income of more than $50,000.

That's not surprising since there are disproportionately higher numbers of fast-food restaurants in low-income neighborhoods, Nestle said.

Fast food is accessible and "it's cheap," she said.

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Stock futures lower following jobless claims data

TORONTO, Feb 20 (Reuters) - Canada's Rebecca Marino, a rising star in women's tennis, stepped away from the sport in search of a normal life on Wednesday, weary of battling depression and cyber-bullies. Ranked number 38 in the world two years ago, the 22-year-old admitted she had long suffered from depression and was no longer willing to make the sacrifices necessary to reach the top. "After thinking long and hard, I do not have the passion or enjoyment to drive myself to the level I would like to be at in professional tennis," Marino explained in a conference call. ...

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Bulgarian government resigns amid growing protests

SOFIA (Reuters) - Bulgaria's government resigned on Wednesday after violent nationwide protests against high power prices, joining a long list of European administrations felled by austerity during Europe's debt crisis.

Prime Minister Boiko Borisov, a former bodyguard who swept to power in 2009 on pledges to root out corruption and raise living standards in the European Union's poorest member, now faces a tough task to prop up eroding support ahead of a probable early election.

Wage and pension freezes and tax hikes have bitten deep in a country where living standards are less than half the EU average and tens of thousands of Bulgarians have rallied in protests that have turned violent, chanting "Mafia" and "Resign".

On Tuesday, 11 people were hospitalized - including one man bleeding heavily from the head - and 11 arrested after protesters threw flares at police, who fought demonstrators with shields and truncheons.

"I will not participate in a government under which police are beating people," Borisov, who began his career guarding the Black Sea state's communist dictator Todor Zhivkov, said as he announced his resignation on Wednesday.

Parliament is expected to accept the resignation later in the day.

The spark for the protests was high electricity bills, after the government raised prices by 13 percent last July. But it quickly spilled over into wider frustration with Borisov's domineering manner and unpredictable decision making.

The prime minister made sacrifices in an attempt to cling on, sacking his finance minister, cutting power prices and risking a diplomatic row with the Czech Republic by punishing foreign-owned companies, a move that conflicted with EU norms on protection of investors and due process.

Borisov's rightist GERB party is the dominant faction in parliament but will not take part in talks to form a new government, Interior Minister Tsvetan Tsvetanov said, indicating that an election planned for July will now be held early.

"He made my day," student Borislav Hadzhiev, 21, in central Sofia said, commenting on Borisov's resignation. "The truth is that we're living in an extremely poor country."

IRE

GERB's popularity has held up well and it still leads, just, in the polls, largely because budget cutbacks have been relatively mild compared with those in many other European countries. Salaries and pensions were frozen rather than cut.

But the last opinion poll, taken before protests grew last weekend already showed the opposition Socialists were nearly tied with the ruling party and analysts said the protests had boosted the Socialists' chances.

Unemployment in the country of 7.3 million is far from the highs hit in the decade after the end of communism but remains at 11.9 percent and average salaries are stuck at around 800 levs ($550) a month.

Millions have emigrated in search of a better life, leaving swathes of the country depopulated and little hope for those who remain.

The measures announced this week has also put the country on a collision course with the EU and financial investors without easing the tension at home.

Czech Prime Minister Petr Necas demanded an explanation from Bulgaria and accused it of "politicizing" the power sector by threatening to revoke the electricity distribution license of central Europe's largest listed company CEZ, 70 percent of which is owned by the Czech state.

There have also been fines for another Czech company, Energo-Pro and Austria's EVN.

The precedent is unlikely to encourage other foreign investors, who already have to navigate complicated bureaucracy and widespread corruption and organized crime if they want to take advantage of Bulgaria's 16-percent flat tax rate.

"The resignation is the only responsible move," said Kantcho Stoychev, an analyst with pollster Gallup International. "It also gives Borisov some legitimacy to stay in political life in the future, despite the violent police actions last night."

(Additional reporting by Angel Krasimirov; editing by Patrick Graham)

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Oscar Pistorius's House Had Testosterone & Needles, Say Police

Breaking News

By Andrea Billups

02/20/2013 at 08:35 AM EST

Oscar Pistorius

Herman Verwey/City Press/Gallo Images/Getty

As a bail hearing continued Wednesday in the murder case of South African sprinter Oscar Pistorius, new details have emerged as prosecutors outline their charges that he is guilty of shooting his girlfriend, model Reeva Steenkamp.

Police testified that they discovered testosterone and needles inside the "Blade Runner" Olympian's home, The New York Times reports.

But his defense lawyers said the Olympian took no banned performance-enhancing drugs, describing the substances found as herbal. The athletes, according to the International Paralympic Committee, tested drug-free as late as last September.

Pistorius, 26, has claimed the shooting was a case of mistaken identity.

Prosecution lawyers, questioning a police witness, said shots fired through the bathroom door that night countered Pistorius's claims that he was not wearing his prosthetic legs when he thought he heard an intruder inside his house and fired with a 9 mm handgun through the door.

Steenkamp, 30, was struck three times, in the head, arm and hip. She was buried on Tuesday amid an outpouring of national support and emotional family tributes.

A police detective testified Wednesday that Pistorius had accidentally fired a weapon at a restaurant in January and urged a friend to take responsibility for the shooting, The Times reports. The detective also testified that Pistorius threatened violence over a woman in another altercation.

Pistorius had claimed to investigators that his house was dark at the time he thought an intruder was inside but a witness who testified for the prosecution Wednesday said a light was switched on when the first shots were fired.

That witness said a gunshot rang out, then a woman's screams were heard, the more shots continued. Pistorius's lawyer, however, said that witness, a neighbor, lived 600 yards away.

The emotional Pistorius continued to proclaim his innocence. "I fail to understand how I could be charged with murder, let alone premeditated," Pistorius told the court in an affidavit read by his defense counsel Barry Roux. "I had no intention to kill my girlfriend."

The prosecution, however, was resolute, that this was not an accident but a premeditated act of violence. If convicted, Pistorius would receive life in prison.

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Drug overdose deaths up for 11th consecutive year

CHICAGO (AP) — Drug overdose deaths rose for the 11th straight year, federal data show, and most of them were accidents involving addictive painkillers despite growing attention to risks from these medicines.

"The big picture is that this is a big problem that has gotten much worse quickly," said Dr. Thomas Frieden, head of the Centers for Disease Control and Prevention, which gathered and analyzed the data.

In 2010, the CDC reported, there were 38,329 drug overdose deaths nationwide. Medicines, mostly prescription drugs, were involved in nearly 60 percent of overdose deaths that year, overshadowing deaths from illicit narcotics.

The report appears in Tuesday's Journal of the American Medical Association.

It details which drugs were at play in most of the fatalities. As in previous recent years, opioid drugs — which include OxyContin and Vicodin — were the biggest problem, contributing to 3 out of 4 medication overdose deaths.

Frieden said many doctors and patients don't realize how addictive these drugs can be, and that they're too often prescribed for pain that can be managed with less risky drugs.

They're useful for cancer, "but if you've got terrible back pain or terrible migraines," using these addictive drugs can be dangerous, he said.

Medication-related deaths accounted for 22,134 of the drug overdose deaths in 2010.

Anti-anxiety drugs including Valium were among common causes of medication-related deaths, involved in almost 30 percent of them. Among the medication-related deaths, 17 percent were suicides.

The report's data came from death certificates, which aren't always clear on whether a death was a suicide or a tragic attempt at getting high. But it does seem like most serious painkiller overdoses were accidental, said Dr. Rich Zane, chair of emergency medicine at the University of Colorado School of Medicine.

The study's findings are no surprise, he added. "The results are consistent with what we experience" in ERs, he said, adding that the statistics no doubt have gotten worse since 2010.

Some experts believe these deaths will level off. "Right now, there's a general belief that because these are pharmaceutical drugs, they're safer than street drugs like heroin," said Don Des Jarlais, director of the chemical dependency institute at New York City's Beth Israel Medical Center.

"But at some point, people using these drugs are going to become more aware of the dangers," he said.

Frieden said the data show a need for more prescription drug monitoring programs at the state level, and more laws shutting down "pill mills" — doctor offices and pharmacies that over-prescribe addictive medicines.

Last month, a federal panel of drug safety specialists recommended that Vicodin and dozens of other medicines be subjected to the same restrictions as other narcotic drugs like oxycodone and morphine. Meanwhile, more and more hospitals have been establishing tougher restrictions on painkiller prescriptions and refills.

One example: The University of Colorado Hospital in Aurora is considering a rule that would ban emergency doctors from prescribing more medicine for patients who say they lost their pain meds, Zane said.

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Stobbe reported from Atlanta.

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Online:

JAMA: http://www.jama.ama-assn.org

CDC: http://www.cdc.gov

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AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com

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