Tech shares propel Wall Street higher; Fed eyed

NEW YORK (Reuters) - Wall Street opened higher on Tuesday, lifted by gains in shares of technology companies as investors picked up some recent laggards, including Apple.

Unexpected improvement in data out of Europe set the positive tone early as investors cast around for catalysts. The U.S. stock market has entered a traditionally quiet period heading into the end of the year, with thinner trading volumes.

The Nasdaq fared better than other major indexes, lifted by a 2 percent gain in Apple Inc . The company's shares have been beaten down recently, partly due to investors' booking profit before a possible rise in capital gains taxes next year. Apple was recently up 2.5 percent at $543.18.

Elsewhere in the tech sector, Intel Corp was up 2.3 percent at $20.54, while Hewlett-Packard rose 1.1 percent to $14.31.

Investors are picking up weaker stocks in hopes of a market turn around next year, said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.

"I doubt there's going to be a lot of conviction based on volume when everything is said and done at the end of the day," said Sheldon.

The Dow Jones industrial average <.dji> gained 90.31 points, or 0.69 percent, to 13,260.19. The Standard & Poor's 500 Index <.spx> rose 11.14 points, or 0.79 percent, to 1,429.69. The Nasdaq Composite Index <.ixic> climbed 33.73 points, or 1.13 percent, to 3,020.69.

Though the pace of talks in Washington to avert impending U.S. tax hikes and spending cuts quickened, senior politicians on both sides cautioned that an agreement on all the outstanding issues remained uncertain.

The lack of progress in negotiations about the "fiscal cliff" has kept investors from making aggressive bets in recent weeks, though most expect a deal will eventually be reached.

In Germany, analyst and investor sentiment rose sharply in December, entering positive territory for the first time since May, a leading survey showed. The data helped drive European shares higher.

The U.S. Treasury is selling its remaining stake in insurer American International Group Inc , bringing an end to government ownership of the company about four years after a $182 billion bailout. AIG's shares were up 3.6 percent at $34.55.

The Fed will begin its policy-setting meeting on Tuesday. The central bank is expected to announce a new round of Treasury bond purchases when the meeting ends on Wednesday to replace its "Operation Twist" stimulus which expires at the end of the year.

(Editing by Kenneth Barry)

Read More..

Egypt army gets temporary power to arrest civilians

CAIRO (Reuters) - Egypt's government has temporarily given the military the authority to arrest civilians to help safeguard a constitutional referendum planned for Saturday, the official gazette said.

The order, gazetted late on Sunday, said the military would support police and liaise with them to protect "vital institutions" until the referendum result is declared.

The decree gave army officers the right to make arrests and transfer detainees to prosecutors.

Despite its limited nature, the edict will revive memories of Hosni Mubarak's emergency law, also introduced as a temporary expedient, under which military or state security courts tried thousands of political dissidents and Islamist militants.

But a military source stressed that the measure, introduced by a civilian government, would have a short shelf-life.

"The latest law giving the armed forces the right to arrest anyone involved in illegal actions such as burning buildings or damaging public sites is to ensure security during the referendum only," the military source said.

"The armed forces secured polling stations during previous elections when it was in charge of the country," the source said, referring to 16 months of army rule after Mubarak fell.

"Now the president is in charge. In order for the armed forces to be involved in securing the referendum, a law had to be issued saying so," the source added.

Presidential spokesman Yasser Ali said the committee overseeing the vote had requested the army's assistance.

"The armed forces will work within a legal framework to secure the referendum and will return (to barracks) as soon as the referendum is over," Ali said.

On Saturday, the military urged rival political forces to solve their disputes via dialogue and said the opposite would drag the country into a "dark tunnel", which it would not allow.

A statement issued by the military spokesman and read on state radio and television made no mention of President Mohamed Mursi, but said a solution to the political crisis should not contradict "legitimacy and the rules of democracy".

A military source close to top officers said the statement "does not indicate any future intervention in politics".

A military council took over after a popular revolt ended Mubarak's 30 years of army-backed rule last year. It then handed power to Mursi, who became Egypt's first freely elected leader in June. The military has not intervened in the latest crisis.

The army statement said the military's duty was to protect national interests and secure vital state institutions.

"The armed forces affirm that dialogue is the best and only way to reach consensus," it added. "The opposite of that will bring us to a dark tunnel that will result in catastrophe and that is something we will not allow."

Hassan Abu Taleb of the Al Ahram Center for Political and Strategic Studies said Saturday's army statement suggested the military wanted both sides to talk out their differences, but discounted the chance of direct military intervention.

"They realize that interfering again in a situation of civil combat will squeeze them between two rocks," he said.

(Additional reporting by Yasmine Saleh; Writing by Alistair Lyon; editing by Philippa Fletcher)

Read More..

Connie Britton: Why I Adopted as a Single Mom

Mom & Babies
Celebrity Baby Blog

12/07/2012 at 04:00 PM ET

Cindy Ord/Getty

Connie Britton always knew she wanted to have a family — and she wasn’t about to let her single status stand in her way.

“I lost both of my parents within three years of each other and I kind of thought, ‘What am I waiting for?’” the Nashville star said during The View on Monday.

“The man will come and if I want to have my own kids I can do that, but I [knew] this was something I [wanted] to do.”

And after shining light on Africa’s orphan crisis, it didn’t take long for Britton, 45, to decide where she would find her first child. “I was going to do a documentary about Ethiopian orphans and spent a lot of time in orphanages there,” she shares.

“It was something I knew I always wanted to do — adopt from there.”

In 2011 the actress welcomed home Yoby – a “wonderful and life-changing experience,” Britton says — and, from the start, baby boy has been busy motivating his mama in ways she never imagined.

“It is really true, I sing to him all the time. Poor thing practically never hears me just say a straight word. I sing everything like we’re in a musical,” she jokes. “I guess he likes it. He wasn’t able to defend himself because he couldn’t speak until just recently.”

So when she was offered the role as country superstar Rayna James on the hit show Nashville, Britton didn’t think twice about belting out her voice. “When this came up, I thought to myself, ‘You know, I sound pretty good singing with Yoby. I’m sure I can pull it off.’ Not smart!” she says with a laugh.

– Anya Leon

Read More..

Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

Read More..

Wall Street edges up with help from McDonald's

NEW YORK (Reuters) - Stocks were modestly higher on Monday, helped by stronger-than-expected sales from McDonald's, but gains were constrained as investors awaited any sign of progress in talks to avert the so-called fiscal cliff.

Developments in Europe also tempered sentiment after Italian Prime Minister Mario Monti said he would resign once the 2013 budget is approved. The move added to uncertainty about reducing euro zone debt and drove Italy's borrowing costs higher.

U.S. President Barack Obama met with Republican House Speaker John Boehner on Sunday to negotiate a deal for avoiding the "fiscal cliff" that is set to go into effect in the new year.

The two sides declined to provide details about the unannounced meeting. Obama is expected to make remarks at 2 p.m. (1900 GMT) from Michigan where he is touring an auto plant.

The fiscal cliff talks have kept markets on edge in the last month as investors worry the scheduled measures could send the economy into recession if politicians do not reach a deal.

While the negotiations are at the forefront of investors' minds, most have adopted the position that a deal will be reached, even if it is at the last minute, said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati, Ohio.

"We haven't had any 'progress' the last two weeks or so, yet all in all equity markets have continued to hang tough," said Detrick. "The rhetoric from Washington is strong, but Wall Street is betting something probably will get done."

The Dow was helped by a gain in McDonald's Corp . The fast food chain's stronger-than-expected November sales marked a rebound after a decline in October. The stock was up 1 percent at $89.33.

The Dow Jones industrial average <.dji> gained 32.64 points, or 0.25 percent, to 13,187.77. The Standard & Poor's 500 Index <.spx> added 1.09 points, or 0.08 percent, to 1,419.16. The Nasdaq Composite Index <.ixic> rose 9.90 points, or 0.33 percent, to 2,987.95.

Ingersoll-Rand Plc said it will spin off its security division and announced a $2 billion share buyback, sending its shares up 2.4 percent at $49.86.

Cisco Systems boosted the Nasdaq after it laid out its midterm growth strategy on Friday. Its shares were up 2 percent at $19.72.

Read More..

Egypt's Mursi scraps decree, fails to appease opponents

CAIRO (Reuters) - Egypt's president scrapped a decree that gave him extra powers and ignited violent protests, but irate opponents said on Sunday he had deepened the conflict by pressing on with a vote on a constitution shaped by Islamists.

President Mohamed Mursi and his Islamist partisans have insisted the referendum go ahead on December 15 to seal a democratic transition that began when a popular uprising felled Hosni Mubarak 22 months ago after three decades of one-man rule.

The retraction of Mursi's November 22 decree, announced around midnight after a "national dialogue" boycotted by almost all the president's opponents, has failed to calm a war of words.

Prime Minister Hisham Kandil, a technocrat with Islamist leanings, said the referendum was the best test of opinion.

"The people are the makers of the future as long as they have the freedom to resort to the ballot box in a democratic, free and fair vote," he said in a cabinet statement.

But opposition factions, uncertain of their ability to vote down the constitution against the Islamists' organizational muscle, want the document redrafted before any vote.

Ahmed Said, a liberal leader of the main opposition National Salvation Front, said Mursi's withdrawal of his November 22 decree had not annulled its consequences, describing the race to a referendum as "shocking" and an "act of war" against Egyptians.

The Front has promised a formal response later on Sunday.

Egypt tipped into turmoil after Mursi grabbed powers to stop any court action to hinder the transition. An assembly led by Mursi's Muslim Brotherhood and other Islamists then swiftly approved the constitution it had spent six months drafting.

Liberals, leftists, Christians and others had already quit the assembly in dismay, saying their voices were being ignored.

The April 6 movement, prominent in the anti-Mubarak revolt, derided the result of Saturday's talks as "manipulation and a continuation of deception in the name of law and legitimacy".

A leftist group led by defeated presidential candidate Hamdeen Sabahy demanded the referendum be deferred until a consensus could be reached on a new draft, saying there could be "no dialogue while blood is being spilled in the streets".

But Muslim Brotherhood spokesman Mahmoud Ghozlan said scrapping Mursi's decree had removed any cause for controversy.

"We ask others to announce their acceptance of the referendum result," he said on the group's Facebook page, asking whether the opposition would accept "the basics of democracy".

"NOT LOGICAL"

More protests were planned near Mursi's palace, despite tanks, barbed wire and other barriers installed last week after clashes between Islamists and their rivals killed seven people.

"A constitution without consensus can't go to a referendum," said Hermes Fawzi, 28, a protester outside the palace. "It's not logical that just one part of society makes the constitution."

After the dialogue hosted by Mursi, a spokesman announced that the president had issued a new decree whose first article "cancels the constitutional declaration" of November 22. He said the referendum could not be delayed for legal reasons.

Egypt is torn between Islamists, who were suppressed for decades, and their rivals, who fear religious conservatives want to squeeze out other voices and restrict social freedoms. Many Egyptians just crave stability and economic recovery.

Each side has mobilized tens of thousands of supporters in rival rallies in Cairo and other cities. Mursi's foes have chanted for his downfall. Islamists fear a plot to oust the most populous Arab nation's first freely elected president.

Islamists reckon they can win the referendum and, once the new constitution is in place, an election for a new parliament about two months later. The Islamist-led lower house elected this year was dissolved after a few months by a court order.

Investors appeared relieved at Mursi's retraction of his decree, sending Egyptian stocks 4.4 percent higher on Sunday. Markets are awaiting approval of a $4.8 billion IMF loan later this month designed to support the budget and economic reforms.

The new decree removed some parts of the old one that had angered the opposition, including an article that had given Mursi broad powers to confront threats to the revolution or the nation - wording that critics said gave him arbitrary authority.

It also dropped an article that had shielded Mursi's actions from the courts until a new parliament was elected, reflecting his distrust of a judiciary largely unreformed from Mubarak's era. But the new decree said "constitutional declarations including this declaration" remained beyond judicial review.

The new decree also set procedures to form an assembly to write a new constitution if Egyptians vote this draft down.

The military, which led Egypt's transition for 16 turbulent months after Mubarak fell, told feuding factions on Saturday that only dialogue could avert "catastrophe". But a military source said these remarks did not herald an army takeover.

(Additional reporting by Tamim Elyan and Yasmine Saleh; Writing by Alistair Lyon; Editing by Mark Heinrich)

Read More..

MiFi With Touchscreen is a Road Warrior’s Dream

Meet the Novatel MiFi Liberate: the first mobile access point with a touchscreen, letting you configure it without connecting it to a computer.

If you’re not familiar with mobile access points, these handy gadgets allow you to hook up to the Internet via cellular networks. It’s useful, often essential, if you’re in an area that has no Wi-Fi. If you’re in range of a cellular tower, this MiFi Liberate lets you connect 10 Wi-Fi devices of any kind to the Internet.

[More from Mashable: Google Considering Wireless Network [REPORT]]

Mobile access points are ideal for frequent travelers, accommodating anyone who needs to get online wherever they are. Just the fact that you’re no longer at the mercy of hotels and their Wi-Fi price-gouging makes it worth the cost of admission.

The Novatel MiFi device we tested connects to the AT&T LTE network. That resulted in spectacular upload and download speed, rivaling that of wired broadband networks. The speed of LTE is variable — depending on how many people are using it and how close you are to one of its broadcast towers — but if you’ve been limping along with 3G connectivity, you’ll probably be astonished at the difference.

[More from Mashable: Samsung Galaxy Camera Goes on Sale Nov. 16]

How fast was this MiFi Liberate? We took multiple readings in a variety of locations. It averaged a zippy 19.70 Mbps for downloads, and a tremendous 20.66 Mbps for uploads. That kind of speed can make a big difference in your work, especially if you’re dealing with large files. In many ways, though, that’s more of a testament to the speed of AT&T’s network, rather than the alacrity of this particular device. Your mileage may vary.

Lovely Touchscreen

The best new feature of this device is its excellent 2.8-inch LCD capacitive touchscreen, the first of its kind. It responds to the slightest touch, letting you easily wander around its menus. And even while using that gorgeous screen, it still has in excess of 10 hours of battery life per charge.

That screen can come in handy in unexpected ways. For example, we were impressed with the way it indicated when a device has connected. Once it has, you can drill down farther, finding out more about that device. The screen adjusts for orientation, righting itself when you turn it upside down just like smartphones do.

If you and others are connected to this MiFi unit, it lets you share movies, photos and music via DLNA, with all of you accessing content on a microSD card inserted into the side of this versatile gadget.

It’s Expensive

All that versatility and convenience doesn’t come cheap. While the MiFi Liberate costs $ 49.99 with a two-year contract, you’ll also need to pay a monthly tariff for your LTE connectivity. Because of its blazing speed, we’re thinking you might want to spring for the 5 GB a month plan for $ 50 from AT&T. That takes the MiFi Liberate out of the value-priced category, and into one that you hope your boss will be willing to pay for.

After spending a couple of weeks with this unit, it was easy to conclude that the Novatel MiFi Liberate is the best portable access point we’ve ever tested.

If you need connectivity on the go at the fastest possible speed, this one will do the trick. And if you want to observe and adjust the unit on a bright and responsive touchscreen, look no further.

MiFi Liberate, Side View

It’s nice and small, except for that bulge, which contains a changeable lithium-ion battery.

Click here to view this gallery.

This story originally published on Mashable here.

Tech News Headlines – Yahoo! News

Read More..

Prince William on Morning Sickness Lasting All Day

By Maggie Coughlan

12/09/2012 at 11:00 AM EST

If you don't think laughter is the best medicine, just ask Prince William.

Despite a stressful week – which included a pregnancy announcement, hospital visits and more – the dad-to-be has managed to maintain his sense of humor.

The Prince, making his first public appearance since wife Kate was released from King Edward VII hospital following a four-day stay with hyperemesis gravidarum (severe morning sickness), attended the Winter Whites Gala in London on Saturday.

Michael O'Higgens, a former chairman of homeless charity Centrepoint, which the gala benefited, told reporters: "[William] said they shouldn't call it morning sickness as it's a day and all night sickness."

Inside the event, William shared his more serious perspective on his country's homeless population.

"About this time a few years ago, for one night, I gave up the warmth and comfort of my bed and tried sleeping on the streets of London. Of course, this was just one night. I was cold but safe and I knew I had a home waiting for me," he said.

"Many others have no such luck. The cold streets are the only reality they know. And yet so often their spirit shines through. What these unfortunate men, women and young people could achieve given the right opportunities is limitless. I really, really believe that," he continued.

William was originally scheduled to attend the British Military Tournament at Earl's Court in London on Sunday, but has canceled and will be spending the day "privately with the Duchess instead," a spokesman for the couple, both 30, said in a statement to PEOPLE.

"It is well known that hyperemesis gravidarum often recurs and, until further notice, to allow the Duchess a degree of privacy during her pregnancy, we do not intend to offer regular condition checks or advise of routine developments associated with it," the spokesman added.

The couple's next engagement is Wednesday December 12, when they are set to attend the royal premiere of The Hobbit movie in London's West End.

• Reporting by SIMON PERRY

Read More..

Smokers celebrate as Wash. legalizes marijuana

SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.

Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.

A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.

"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"

Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.

Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.

King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.

Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.

Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."

Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.

Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.

"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.

___

Johnson can be reached at https://twitter.com/GeneAPseattle

Read More..

Wall Street Week Ahead: "Cliff" worries may drive tax selling

NEW YORK (Reuters) - Investors typically sell stocks to cut their losses at year end. But worries about the "fiscal cliff" - and the possibility of higher taxes in 2013 - may act as the greatest incentive to sell both winners and losers by December 31.

The $600 billion of automatic tax increases and spending cuts scheduled for the beginning of next year includes higher rates for capital gains, making tax-loss selling even more appealing than usual.

Tax-related selling may be behind the weaker trend in the shares of market leader Apple , analysts said. The stock is down 20 percent for the quarter, but it's still up nearly 32 percent for the year.

Apple dropped 8.9 percent in this past week alone. For a stock that gained more than 25 percent a year for four consecutive years, the embedded capital gains suddenly look like a selling opportunity if one's tax bill is going to jump sharply just because the calendar changes.

"Tax-loss selling is always a factor (but) tax-gains selling has been a factor this year," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

"You have a lot of high-net-worth individuals in taxable accounts, and that could be what's affecting stocks like Apple. If you look at the stocks that people have their largest gains in, they seem to be under a little bit more pressure here than usual."

Of this year's top 20 performers in the S&P 1500 index, which includes large, small and mid-cap stocks, all but four have lost ground in the last five trading sessions.

The rush to avoid higher taxes on portfolio gains could cause additional weakness.

The S&P 500 ended the week up just 0.1 percent after another week of trading largely tied to fiscal cliff negotiation news, which has pushed the market in both directions.

A PAIN PILL FROM THE FED?

Next week's Federal Reserve meeting could offer some relief if policymakers announce further plans to help the lackluster U.S. economy. The Federal Open Market Committee will meet on Tuesday and Wednesday. The policy statement is expected at about 12:30 p.m. on Wednesday after the conclusion of the meeting - the Fed's last one for the year.

Friday's jobs report showing non-farm payrolls added 146,000 jobs in November eased worries that Superstorm Sandy had hit the labor market hard.

"After the FOMC meeting, I think it's going to be downhill from there as worries about the fiscal cliff really take center stage and prospects of a deal become less and less likely," said Mohannad Aama, managing director of Beam Capital Management LLC in New York.

"I think we are likely to see an escalation in profit-taking ahead of tax rates going up next year," he said.

MORE VOLUME AND VOLATILITY

Volume could increase as investors try to shift positions before year end, some analysts said.

While most of that would be in stocks, some of the extra trading volume could spill over into options, said J.J. Kinahan, TD Ameritrade's chief derivatives strategist.

Volatility could pick up as well, and some of that is already being seen in Apple's stock.

"The actual volatility in Apple has been very high while the market itself has been calm. I expect Apple's volatility to carry over into the market volatility," said Enis Taner, global macro editor at RiskReversal.com, an options trading firm in New York.

Shares of Apple, the largest U.S. company by market value, registered their worst week since May 2010. In another bearish sign, the stock's 50-day moving average fell to $599.52 - below its 200-day moving average at $601.38.

"There's a lot of tax-related selling happening now, and it will continue to happen. Apple is an example, even (though) there are other factors involved with Apple," Aama said.

While investors may be selling stocks to avoid higher taxes in 2013, companies may continue to announce special and accelerated dividend payments before year end. Among the latest, Expedia announced a special dividend of 52 cents a share to be paid on December 28.

To be sure, the big sell-off in stocks following the November 6 election was likely related to tax selling, making it hard to judge how much more is to come.

Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston, said there's a decent chance that the market could rally before year end.

"Even with little or spotty news that one would put in the positive bucket regarding the (cliff) negotiations, the market has basically hung in there, and I think it's hung in there in anticipation of something coming," he said.

(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: caroline.valetkevitch(at)thomsonreuters.com)

(Reporting by Caroline Valetkevitch; Editing by Jan Paschal; Multimedia versions of Reuters Top News are now available for:; 3000 Xtra: visit Reuters Top News; BridgeStation: view story .134; For London stock market outlook please click on .L/O; Pan-European stock market outlook .EU/O; Tokyo stock market outlook .T/O; Wall St Week Ahead runs every Friday.)

Read More..