Stock futures little changed as market awaits Bernanke, data

NEW YORK (Reuters) - Stock index futures were little changed on Wednesday as investors awaited a second round of testimony in Congress by Federal Reserve Chairman Ben Bernanke for signs of whether the Fed will continue its economic stimulus program.

Economic data was also in focus with U.S. durables goods and homes data due out at 8:30 a.m. ET (1330) GMT and 10:00 a.m. ET (1500 GMT), respectively.

Bernanke will make his second appearance before the Financial Services Committee at 10:00 a.m. ET (1500 GMT).

"Of course, Bernanke is in the spotlight again but I don't expect him to vary from his comments from yesterday," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

A day earlier, Bernanke strongly defended the Fed's monetary stimulus efforts before Congress, easing financial market worries over an early retreat from the Fed's bond buying program, which had been triggered by minutes of the Fed's January meeting released a week ago.

His remarks, along with data showing sales of new homes hit a 4 1/2-year high, helped U.S. stocks rebound Tuesday from their worst decline since November.

Despite the bounce, the S&P 500 was unable to move back above 1,500, a closely watched level that had been technical support until recently, but may now prove a resistance point.

The benchmark S&P 500, up 6 percent for the year, was within reach of record highs a week ago before the minutes from the Fed's January meeting were released. Since then, the index has shed 1 percent as the minutes raised questions about the longevity of the Fed's economy-stimulating measures.

S&P 500 futures rose 2.1 points and were in line with 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 fell 1 points while Nasdaq 100 futures added 4 points.

In earnings news, Target Corp posted a lower quarterly profit as sales of food and value-priced items only partially mitigated weakness in holiday spending. The stock fell 1.7 percent to $62.99 in premarket trading.

Dollar Tree Inc reported a higher quarterly profit as the chain controlled costs and as consumer spending improved. The stock rose 4.5 percent to $42.91 in premarket trading.

In Europe, shares rose, steadying after the previous session's sharp losses, though jitters over the euro zone kept a lid on gains.

Italy's 10-year debt costs rose more than half a percentage point at the first longer-term auction since an inconclusive parliamentary election, although they remained below the psychologically important level of 5 percent.

(Editing by Bernadette Baum)

Read More..

Charlize Theron & Channing Tatum's Oscars Dance - No Practice Makes Perfect!

By Oliver Jones and Tim Nudd

02/26/2013 at 08:35 AM EST

Channing Tatum and Charlize Theron

Getty

Who knew Charlize Theron could dance? Or that Channing Tatum could do so with his clothes on?

Together they wowed the Academy Awards on Sunday, performing a challenging ballroom dance in front of 40 million viewers – each counting on their background in dance to make up for a frightening lack of rehearsal time.

"They were going to cram and rehearse constantly over two days [right before the Oscars]. But then they both simultaneously got the flu," producer Neil Meron tells PEOPLE.

"We were going, 'Oh my God.' Literally at the last minute they got to rehearse and miraculously got up there and they killed."

It helped that both know a little something about dance.

Theron, 37, studied at the Joffrey Ballet School in New York before embarking on her Oscar-winning acting career. "We reached out to Charlize first, and there was no hesitation. She absolutely jumped on board," says Meron.

Tatum, 32, was less sure of himself, despite loads of dance experience in movies like Step Up and Magic Mike, the latter loosely based on his own experiences as a male stripper.

"Chan said to us, 'Look, I have danced in all these movies, but I have never really done honest-to-God choreography. I don't know that I can do that,' " Meron says. "We told him, 'We believe you are a great dancer, and that you will be able to do it.' He said he would give it a try."

In the end, they dazzled with a Fred Astaire and Ginger Rogers style number choreographed by Rob Ashford.

And Chan even kept his tux on.

Read More..

Futures rise in rebound after steep losses on Italy vote

NEW YORK (Reuters) - U.S. stock index futures rose on Tuesday, indicating equities would partially rebound from a steep drop over Italian election results as investors saw opportunities to buy beaten-down shares.

Market participants speculated a coalition government would eventually emerge in Italy and ease worries about a new euro zone debt crisis.

Groups in Italy opposed to economic reforms posted a strong showing, resulting in a political deadlock with a comedian's protest party leading the poll and no group securing a clear majority in parliament.

"We've gone to an environment of political stability to instability, and until we get some type of clarity over who is in charge, which could take days, the market will have renewed concerns," said Art Hogan, managing director of Lazard Capital Markets in New York.

"Investors are taking advantage of the drop, and once some kind of coalition government is formed most of our concerns will be put to rest," Hogan said.

S&P 500 futures rose 3.9 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 added 38 points and Nasdaq 100 futures rose 5.75 points.

Major indexes fell more than 1 percent on Monday, with the S&P 500 having its biggest daily drop since November as investors fretted that if Italy does not undertake reforms, that could once again destabilize the euro zone. European equities <.fteu3>, which closed before the results on Monday, fell 1.1 percent.

Investors will pay close attention to the first of two days of congressional testimony by Federal Reserve Chairman Ben Bernanke for insight into the central bank's view of the economy, as well as the outlook for its bond buying program. Last week, equities fell on concerns the program might end sooner than had been anticipated.

Bernanke appears before the Senate Banking Committee at 10 a.m. (1500 GMT).

Economic data will include the CaseShiller report on December home prices at 9 a.m. (1400 GMT). Analysts expect a 0.5 percent rise. January consumer confidence is scheduled for 10 a.m. and is seen rising to 61.0 from 58.6 in the previous month. New-home sales for January also are due at 10 a.m.

The rise in U.S. futures suggests that a recent trend of investors buying on dips will continue. Last week, concerns the Fed might roll back its stimulus policy earlier than expected prompted a sharp two-day decline, though equities recovered most of the lost ground by the end of the week.

Financial shares may be among the most volatile, as the group is closely tied to the pace of global economic growth. Morgan Stanley was one of the top percentage losers on the S&P on Monday, dropping more than 6 percent on concerns about the company's exposure to European debt. It rose 0.8 percent to $22.20 in premarket trading on Tuesday.

Dow component Home Depot Inc , the world's largest home improvement retailer, reported adjusted earnings and sales that beat expectations. Its stock rose 1.5 percent to $64.90 in premarket trading.

For the benchmark S&P 500 index, 1,500 will be watched as a key level after the index closed below it on Monday for the first time since February 4, with selling accelerating after falling below it. An inability to break back above it could portend further losses.

The S&P remains 4.3 percent higher on the year. With 83 percent of the S&P 500 having reported so far, 69 percent beat profit expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters, according to Thomson Reuters data. Fourth-quarter S&P earnings are seen having risen 6 percent, above a 1.9 percent forecast at the start of the earnings season.

(Editing by Chizu Nomiyama and Kenneth Barry)

Read More..

Powers to offer Iran sanctions relief at nuclear talks: U.S. official

ALMATY (Reuters) - Major powers will offer Iran some sanctions relief during talks in Almaty, Kazakhstan, this week if Tehran agrees to curb its nuclear program, a U.S. official said on Monday.

However, the Islamic Republic could face more economic pain if the standoff remains unresolved, the official said ahead of the February 26-27 meeting, speaking on condition of anonymity.

"We think ... there will be some additional sanctions relief (in the powers' updated proposal to Iran)," the official said, without giving details.

Western diplomats have told Reuters that the United States, Russia, China, Britain, Germany and France will offer to ease sanctions on trade in gold and precious metals if Iran closes its Fordow underground uranium enrichment plant.

Iranian officials have indicated, however, that this will not be enough. Iran denies Western it is seeking to develop the capability to make nuclear bombs, saying its program is entirely peaceful.

The U.S. official said the powers hoped that the Almaty meeting would lead to follow-up talks soon. "We are ready to step up the pace of our meetings and our discussions," the official said, adding the United States would also be prepared to hold bilateral talks with Tehran if it was serious about it.

(Reporting by Fredrik Dahl and Justyna Pawlak; Editing by Jon Boyle)

Read More..

Anne Hathaway's Oscar Dress Had You Talking

By Maggie Coughlan

02/25/2013 at 08:30 AM EST

The Oscars may honor the best in film, but they'd be nothing without the fashion.

When Anne Hathaway stepped on to the red carpet in a light pink backless Prada gown at Sunday's 85th Annual Academy Awards, she made quite the fashion statement.

While the gown seemed simple from the front, at second glance, an open back and thigh-high slit gave it a sexy edge. Hathaway, 30, told Kristin Chenoweth on ABC's red carpet that her mom called the dress "business in front, party in the back."

Viewers had their own opinions on the dress – which seemed to emphasize Hathaway's bust – which later inspired its own parody Twitter account.

But the dress may have served as a lucky charm for Hathaway, who took home the Oscar for Best Supporting Actress for her role in Les Misérables.

"It came true. Thank you so much to the Academy for this and for nominating me with Helen Hunt, Jacki Weaver, Amy Adams and Sally Field. I look up to you all so much and it's just been such an honor. Thank you," Hathaway said upon receiving her Oscar.

She continued, "There are so many people whose generosity and support is the reason I'm standing here right now. I must thank Hugh Jackman. Hugh, you're the best. The cast, the crew, especially Simon Hayes and the sound wizards. Congratulations on tonight, you guys."

Hathaway continued thanking the cast and the crew before giving a romantic shout out to her husband, Adam Shulman.

"By far and away, the greatest moment of my life is the one when you walked into it. I love you so much. And thank you for this. Here's hoping that someday in the not too distant future the misfortunes of Fantine will only be found in stories and never in real life. Thank you."

Read More..

Stock futures rise, Barnes & Noble up on bid report

NEW YORK (Reuters) - U.S. stock index futures pointed to a higher open on Monday, suggesting the equity rally was intact despite concerns that the Federal Reserve could curtail its stimulus for the economy sooner than many expected.

Stocks have been strong performers so far this year, with the S&P 500 jumping 6.2 percent in 2013 to hover around its highest levels since 2007. That has prompted many to predict a pullback, but so far declines have been neutralized as investors use any dip as a buying opportunity.

Barnes & Noble Inc will be in focus after the Wall Street Journal reported that Chairman Leonard Riggio was considering a bid for the company's bookstore business. The stock jumped 13 percent to $15.25 in premarket trading.

While the S&P fell last week, the decline was a slight 0.3 percent and was the first weekly drop after a seven-week string of gains, suggesting many may still be looking for a consolidation.

"People are cautious about investing near five-year highs, especially given the pace at which we got here, but there's still room to grow and any pullback should be shallow," said Robert Pavlik, chief market strategist at Banyan Partners LLC in New York.

S&P 500 futures rose 7 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 added 57 points and Nasdaq 100 futures rose 18.25 points.

The gains have come on strong corporate earnings. With 83 percent of the S&P 500 having reported results, 69 percent of beat profit expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters, according to Thomson Reuters data.

In addition, the market has risen against a backdrop of stimulus from the Federal Reserve. Last week stocks faltered when some Fed officials seemed to suggest the stimulus may be curtailed earlier than many expected, though subsequent comments seemed to allay those concerns.

Another test for equities will come with the looming debate over massive U.S. government budget cuts that will take effect on Friday if lawmakers fail to reach an agreement over spending and taxes. The White House issued warnings about the harm the cuts. referred to as sequester are likely to inflict on the economy if enacted.

"Right now we're looking past the sequester, but as we go forward we may see more anxiety if it doesn't look like our leaders can get anything together," Pavlik said.

More government-related uncertainty came from Italy, where a close election left questions about how the country would handle its three-year debt crisis. Last year, inconclusive Greek elections sparked a protracted selloff and a period of uncertainty in U.S. equity markets as well.

Still, European shares <.fteu3> were higher on Monday, rising 0.4 percent after a smooth Italian debt auction.

Lowe's Cos Inc reported earnings that beat expectations, helped by rebuilding efforts after Hurricane Sandy in the United States. Shares rose 0.6 percent to $37.90 before the bell.

Fourth-quarter earnings for S&P 500 companies are estimated to have risen 6 percent, according to Thomson Reuters data, above a 1.9 percent forecast at the start of the earnings season.

Dow component Johnson & Johnson forecast a negative impact to its first-quarter earnings as a result of a Venezuelan currency devaluation, though the charge wouldn't impact its full-year guidance.

Dynavax Technologies Inc shares plunged 27 percent to $2.18 before the bell after the Food and Drug Administration denied approval for the company's adult hepatitis B vaccine and sought additional data for evaluate its safety.

U.S. stocks closed higher on Friday, boosted by strong results from Hewlett-Packard Co , as well as allayed concerns over Fed policy.

(Editing by Chizu Nomiyama and Kenneth Barry)

Read More..

You're Invited to PEOPLE.com's Oscars Party!

02/24/2013 at 08:40 AM EST

From left: Bradley Cooper, Oscar, Jessica Chastain

AFP/Getty; Wireimage; Splash News Online

Oscars host Seth MacFarlane isn't the only one gearing up for Hollywood's biggest night – we are too!

Be a part of the glamour and excitement Sunday at 6 p.m. ET when we roll out the red carpet for our PEOPLE.com VIPs.

Here's what you can expect:
• Tune in to our red carpet preshow for exclusive A-list interviews
• Be the first to see the gorgeous gowns – and make your own best-dressed list
• Download your own Oscars ballot – and make your own Academy Awards picks
• Tweet with our editors at #PeopleOscars
• Take our up-to-the-minute Oscars polls

And come back the next day for so much more ...
• See the night's best dresses from all angles with our 360º slideshow
• Come inside the most exclusive Oscars after-parties
• Relive the most memorable quotes of the show
• Get the scoop on the night's biggest shockers and funniest moments everyone is talking about

Read More..

FDA approves new targeted breast cancer drug

WASHINGTON (AP) — The Food and Drug Administration has approved a first-of-a-kind breast cancer medication that targets tumor cells while sparing healthy ones.

The drug Kadcyla from Roche combines the established drug Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell, delivering a potent dose of anti-tumor poison.

Cancer researchers say the drug is an important step forward because it delivers more medication while reducing the unpleasant side effects of chemotherapy.

"This antibody goes seeking out the tumor cells, gets internalized and then explodes them from within. So it's very kind and gentle on the patients — there's no hair loss, no nausea, no vomiting," said Dr. Melody Cobleigh of Rush University Medical Center. "It's a revolutionary way of treating cancer."

Cobleigh helped conduct the key studies of the drug at the Chicago facility.

The FDA approved the new treatment for about 20 percent of breast cancer patients with a form of the disease that is typically more aggressive and less responsive to hormone therapy. These patients have tumors that overproduce a protein known as HER-2. Breast cancer is the second most deadly form of cancer in U.S. women, and is expected to kill more than 39,000 Americans this year, according to the National Cancer Institute.

The approval will help Roche's Genentech unit build on the blockbuster success of Herceptin, which has long dominated the breast cancer marketplace. The drug had sales of roughly $6 billion last year.

Genentech said Friday that Kadcyla will cost $9,800 per month, compared to $4,500 per month for regular Herceptin. The company estimates a full course of Kadcyla, about nine months of medicine, will cost $94,000.

FDA scientists said they approved the drug based on company studies showing Kadcyla delayed the progression of breast cancer by several months. Researchers reported last year that patients treated with the drug lived 9.6 months before death or the spread of their disease, compared with a little more than six months for patients treated with two other standard drugs, Tykerb and Xeloda.

Overall, patients taking Kadcyla lived about 2.6 years, compared with 2 years for patients taking the other drugs.

FDA specifically approved the drug for patients with advanced breast cancer who have already been treated with Herceptin and taxane, a widely used chemotherapy drug. Doctors are not required to follow FDA prescribing guidelines, and cancer researchers say the drug could have great potential in patients with earlier forms of breast cancer

Kadcyla will carry a boxed warning, the most severe type, alerting doctors and patients that the drug can cause liver toxicity, heart problems and potentially death. The drug can also cause severe birth defects and should not be used by pregnant women.

Kadcyla was developed by South San Francisco-based Genentech using drug-binding technology licensed from Waltham, Mass.-based ImmunoGen. The company developed the chemical that keeps the drug cocktail together and is scheduled to receive a $10.5 million payment from Genentech on the FDA decision. The company will also receive additional royalties on the drug's sales.

Shares of ImmunoGen Inc. rose 2 cents to $14.32 in afternoon trading. The stock has ttraded in a 52-wek range of $10.85 to $18.10.

Read More..

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)

Read More..

Abe vows to revive Japanese economy, sees no escalation with China

WASHINGTON (Reuters) - Japanese Prime Minister Shinzo Abe told Americans on Friday "I am back and so is Japan" and vowed to get the world's third biggest economy growing again and to do more to bolster security and the rule of law in an Asia roiled by territorial disputes.

Abe had firm words for China in a policy speech to a top Washington think-tank, but also tempered his remarks by saying he had no desire to escalate a row over islets in the East China Sea that Tokyo controls and Beijing claims.

"No nation should make any miscalculation about firmness of our resolve. No one should ever doubt the robustness of the Japan-U.S. alliance," he told the Center for Strategic and International Studies.

"At the same time, I have absolutely no intention to climb up the escalation ladder," Abe said in a speech in English.

After meeting U.S. President Barack Obama on his first trip to Washington since taking office in December in a rare comeback to Japan's top job, he said he told Obama that Tokyo would handle the islands issue "in a calm manner."

"We will continue to do so and we have always done so," he said through a translator, while sitting next to Obama in the White House Oval Office.

Tension surged in 2012, raising fears of an unintended military incident near the islands, known as the Senkaku in Japan and the Diaoyu in China. Washington says the islets fall under a U.S.-Japan security pact, but it is eager to avoid a clash in the region.

Abe said he and Obama "agreed that we have to work together to maintain the freedom of the seas and also that we would have to create a region which is governed based not on force but based on an international law."

Abe, whose troubled first term ended after just one year when he abruptly quit in 2007, has vowed to revive Japan's economy with a mix of hyper-easy monetary policy, big spending, and structural reform. The hawkish leader is also boosting Japan's defense spending for the first time in 11 years.

"Japan is not, and will never be, a tier-two country," Abe said in his speech. "So today ... I make a pledge. I will bring back a strong Japan, strong enough to do even more good for the betterment of the world."

'ABENOMICS' TO BOOST TRADE

The Japanese leader stressed that his "Abenomics" recipe would be good for the United States, China and other trading partners.

"Soon, Japan will export more, but it will import more as well," Abe said in the speech. "The U.S. will be the first to benefit, followed by China, India, Indonesia and so on."

Abe said Obama welcomed his economic policy, while Deputy Chief Cabinet Secretary Katsunobu Kato said the two leaders did not discuss currencies, in a sign that the U.S. does not oppose "Abenomics" despite concern that Japan is weakening its currency to export its way out of recession.

The United States and Japan agreed language during Abe's visit that could set the stage for Tokyo to join negotiations soon on a U.S.-led regional free trade agreement known as the Trans-Pacific Partnership.

In a carefully worded statement following the meeting between Obama and Abe, the two countries reaffirmed that "all goods would be subject to negotiations if Japan joins the talks with the United States and 10 other countries.

At the same time, the statement envisions a possible outcome where the United States could maintain tariffs on Japanese automobiles and Japan could still protect its rice sector.

"Recognizing that both countries have bilateral trade sensitivities, such as certain agricultural products for Japan and certain manufactured products for the United States, the two governments confirm that, as the final outcome will be determined during the negotiations, it is not required to make a prior commitment to unilaterally eliminate all tariffs upon joining the TPP negotiations," the statement said.

Abe repeated that Japan would not provide any aid for North Korea unless it abandoned its nuclear and missile programs and released Japanese citizens abducted decades ago to help train spies.

Pyongyang admitted in 2002 that its agents had kidnapped 13 Japanese in the 1970s and 1980s. Five have been sent home, but Japan wants better information about eight who Pyongyang says are dead and others Tokyo believes were also kidnapped.

Abe also said he hoped to have a meeting with new Chinese leader Xi Jinping, who takes over as president next month, and would dispatch Finance Minister Taro Aso to attend the inauguration of incoming South Korean President Park Geun-hye next week.

(Additional reporting by Jeff Mason and Doug Palmer; Editing by David Brunnstrom and Paul Simao)

Read More..