Gunman's Father and Brother Are 'in Shock,' Says a Source









12/14/2012 at 08:50 PM EST







State police personnel lead children to safety away from the Sandy Hook Elementary School


Shannon Hicks/Newtown Bee/Reuters/Landov


The father and older brother of the gunman who was blamed for the Connecticut school shooting are being questioned by authorities but are not suspects, a law enforcement source tells PEOPLE.

The Associated Press reports that the gunman has been identified as 20-year-old Adam Lanza.

His unidentified father, who lives in New York City, and his older brother, Ryan, 24, of Hoboken, N.J., are "in shock," the law enforcement source tells PEOPLE.

They were being questioned by the FBI in the Hoboken police station but "are not suspects, they have no involvement," the source says.

"Imagine the 24 year old – he's lost his mother. Imagine the father, his son killed 20 kids," the source says."   

As for Adam, "It looks like there's mental history there," the law enforcement source says.

Adam Lanza died at the scene of the shooting that killed 20 children and six adults at the Sandy Hook Elementary School in Newtown, Conn.

His mother, Nancy Lanza, was found dead at her home, according to CNN.

The source describes the weapons used by Lanza as "legitimate." According to CNN, Lanza used two hand guns that were registered to his mother and a rifle.

Adam's parents were no longer together, the source says.   

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Fewer health care options for illegal immigrants


ALAMO, Texas (AP) — For years, Sonia Limas would drag her daughters to the emergency room whenever they fell sick. As an illegal immigrant, she had no health insurance, and the only place she knew to seek treatment was the hospital — the most expensive setting for those covering the cost.


The family's options improved somewhat a decade ago with the expansion of community health clinics, which offered free or low-cost care with help from the federal government. But President Barack Obama's health care overhaul threatens to roll back some of those services if clinics and hospitals are overwhelmed with newly insured patients and can't afford to care for as many poor families.


To be clear, Obama's law was never intended to help Limas and an estimated 11 million illegal immigrants like her. Instead, it envisions that 32 million uninsured Americans will get access to coverage by 2019. Because that should mean fewer uninsured patients showing up at hospitals, the Obama program slashed the federal reimbursement for uncompensated care.


But in states with large illegal immigrant populations, the math may not work, especially if lawmakers don't expand Medicaid, the joint state-federal health program for the poor and disabled.


When the reform has been fully implemented, illegal immigrants will make up the nation's second-largest population of uninsured, or about 25 percent. The only larger group will be people who qualify for insurance but fail to enroll, according to a 2012 study by the Washington-based Urban Institute.


And since about two-thirds of illegal immigrants live in just eight states, those areas will have a disproportionate share of the uninsured to care for.


In communities "where the number of undocumented immigrants is greatest, the strain has reached the breaking point," Rich Umbdenstock, president of the American Hospital Association, wrote last year in a letter to Obama, asking him to keep in mind the uncompensated care hospitals gave to that group. "In response, many hospitals have had to curtail services, delay implementing services, or close beds."


The federal government has offered to expand Medicaid, but states must decide whether to take the deal. And in some of those eight states — including Texas, Florida and New Jersey — hospitals are scrambling to determine whether they will still have enough money to treat the remaining uninsured.


Without a Medicaid expansion, the influx of new patients and the looming cuts in federal funding could inflict "a double whammy" in Texas, said David Lopez, CEO of the Harris Health System in Houston, which spends 10 to 15 percent of its $1.2 billion annual budget to care for illegal immigrants.


Realistically, taxpayers are already paying for some of the treatment provided to illegal immigrants because hospitals are required by law to stabilize and treat any patients that arrive in an emergency room, regardless of their ability to pay. The money to cover the costs typically comes from federal, state and local taxes.


A solid accounting of money spent treating illegal immigrants is elusive because most hospitals do not ask for immigration status. But some states have tried.


California, which is home to the nation's largest population of illegal immigrants, spent an estimated $1.2 billion last year through Medicaid to care for 822,500 illegal immigrants.


The New Jersey Hospital Association in 2010 estimated that it cost between $600 million and $650 million annually to treat 550,000 illegal immigrants.


And in Texas, a 2010 analysis by the Health and Human Services Commission found that the agency had provided $96 million in benefits to illegal immigrants, up from $81 million two years earlier. The state's public hospital districts spent an additional $717 million in uncompensated care to treat that population.


If large states such as Florida and Texas make good on their intention to forgo federal money to expand Medicaid, the decision "basically eviscerates" the effects of the health care overhaul in those areas because of "who lives there and what they're eligible for," said Lisa Clemans-Cope, a senior researcher at the Urban Institute.


Seeking to curb expenses, hospitals might change what qualifies as an emergency or cap the number of uninsured patients they treat. And although it's believed states with the most illegal immigrants will face a smaller cut, they will still lose money.


The potential impacts of reform are a hot topic at MD Anderson Cancer Center in Houston. In addition to offering its own charity care, some MD Anderson oncologists volunteer at a county-funded clinic at Lyndon B. Johnson General Hospital that largely treats the uninsured.


"In a sense we've been in the worst-case scenario in Texas for a long time," said Lewis Foxhall, MD Anderson's vice president of health policy in Houston. "The large number of uninsured and the large low-income population creates a very difficult problem for us."


Community clinics are a key part of the reform plan and were supposed to take up some of the slack for hospitals. Clinics received $11 billion in new funding over five years so they could expand to help care for a swell of newly insured who might otherwise overwhelm doctors' offices. But in the first year, $600 million was cut from the centers' usual allocation, leaving many to use the money to fill gaps rather than expand.


There is concern that clinics could themselves be inundated with newly insured patients, forcing many illegal immigrants back to emergency rooms.


Limas, 44, moved to the border town of Alamo 13 years ago with her husband and three daughters. Now single, she supports the family by teaching a citizenship class in Spanish at the local community center and selling cookies and cakes she whips up in her trailer. Soon, she hopes to seek a work permit of her own.


For now, the clinic helps with basic health care needs. If necessary, Limas will return to the emergency room, where the attendants help her fill out paperwork to ensure the government covers the bills she cannot afford.


"They always attended to me," she said, "even though it's slow."


___


Sherman can be followed on Twitter at https://twitter.com/chrisshermanAP .


Plushnick-Masti can be followed on Twitter at https://twitter.com/RamitMastiAP .


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Wall Street Week Ahead: Holiday "on standby" as clock ticks on cliff

NEW YORK (Reuters) - The last two weeks of December are traditionally quiet for stocks, but traders accustomed to a bit of time off are staying close to their mobile devices, thanks to the "fiscal cliff."


Last-minute negotiations in Washington on the so-called fiscal cliff - nearly $600 billion of tax increases and spending cuts set to take effect in January that could cause a sharp slowdown in growth or even a recession - are keeping some traders and analysts from taking Christmas holidays because any deal could have a big impact on markets.


"A lot of firms are saying to their trading desks, 'You can take days off for Christmas, but you are on standby to come in if anything happens.' This is certainly different from previous years, especially around this time of the year when things are supposed to be slowing down," said J.J. Kinahan, chief derivatives strategist at TD Ameritrade in Chicago.


"Next week is going to be a Capitol Hill-driven market."


With talks between President Barack Obama and House Speaker John Boehner at an apparent standstill, it was increasingly likely that Washington will not come up with a deal before January 1.


Gordon Charlop, managing director at Rosenblatt Securities in New York, will also be on standby for the holiday season.


"It's a 'Look guys, let's just rotate and be sensible" type of situation going on," Charlop said.


"We are hopeful there is some resolution down there, but it seems to me they continue to walk that political tightrope... rather than coming up with something."


Despite concerns that the deadline will pass without a deal, the S&P 500 has held its ground with a 12.4 percent gain for the year. For this week, though, the S&P 500 fell 0.3 percent.


BEWARE OF THE WITCH


This coming Friday will mark the last so-called "quadruple witching" day of the year, when contracts for stock options, single stock futures, stock index options and stock index futures all expire. This could make trading more volatile.


"We could see some heavy selling as there is going to be a lot of re-establishing of positions, reallocation of assets before the year-end," Kinahan said.


RETHINKING APPLE


Higher tax rates on capital gains and dividends are part of the automatic tax increases that will go into effect next year, if Congress and the White House don't come up with a solution to avert the fiscal cliff. That possibility could give investors an incentive to unload certain stocks in some tax-related selling by December 31.


Some market participants said tax-related selling may be behind the weaker trend in the stock price of market leader Apple . Apple's stock has lost a quarter of its value since it hit a lifetime high of $705.07 on September 21.


On Friday, the stock fell 3.8 percent to $509.79 after the iPhone 5 got a chilly reception at its debut in China and two analysts cut shipment forecasts. But the stock is still up nearly 26 percent for the year.


"If you owned Apple for a long time, you should be thinking about reallocation as there will be changes in taxes and other regulations next year, although we don't really know which rules to play by yet," Kinahan said.


But one indicator of the market's reduced concern about the fiscal cliff compared with a few weeks ago, is the defense sector, which will be hit hard if the spending cuts take effect. The PHLX Defense Sector Index <.dfx> is up nearly 13 percent for the year, and sits just a few points from its 2012 high.


(Reporting by Angela Moon; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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U.S., rebels urge gloomy Moscow to help oust Assad


BEIRUT (Reuters) - Syria's rebel leadership and the United States seized on Russian pessimism over President Bashar al-Assad's future to urge Moscow to help push its ally into ceding power and end the battles closing in around his capital.


"We want to commend the Russian government for finally waking up to the reality and acknowledging that the regime's days are numbered," the U.S. State Department spokeswoman said after a senior Kremlin envoy conceded publicly on Thursday that Assad's opponents could win the 20-month-old civil war.


"The question now is, will the Russian government join those of us in the international community who are working with the opposition to try to have a smooth democratic transition?" U.S. spokeswoman Victoria Nuland added in Washington.


In Marrakech, where his new coalition won recognition from other international powers as the legitimate leadership of Syria, rebel political leader Mouaz al-Khatib said he believed Russia, ally and arms supplier to the Assad dynasty since Soviet times, was looking for ways out of its support for a lost cause.


"I believe that the Russians have woken up and are sensing that they have implicated themselves with this regime, but they don't know how to get out," al-Khatib told Reuters. He held them "particularly responsible" for helping Assad with arms but said Moscow need not "lose everything" in Syria if it changed tack.


Under President Vladimir Putin, wary since last year's Libyan war of what Russia sees as a Western drive to use the United Nations to overthrow national leaders it dislikes, Russia has blocked U.N. efforts to squeeze Assad, who has also had strong support from his long-time sponsor Iran.


But Mikhail Bogdanov, a deputy foreign minister and the Kremlin's special envoy for Middle East affairs, was quoted as saying in Moscow: "One must look the facts in the face."


"Unfortunately, the victory of the Syrian opposition cannot be ruled out." The Syrian government, he said, was "losing control of more and more territory" and Moscow was preparing to evacuate Russian citizens if necessary.


Nuland said Bogdanov's comments demonstrated that Moscow now "sees the writing on the wall" on Syria and said Russia should now rally behind U.N. efforts to prevent a wider bloodbath.


"They can withdraw any residual support for the Assad regime, whether it is material support (or) financial support," she said. "They can also help us to identify people who might be willing, inside of Syria, to work on a transitional structure."


DIPLOMACY


International envoy Lakhdar Brahimi, who has met Russian and U.S. officials twice in the past week, is seeking a solution based on an agreement reached in Geneva in June that called for the creation of a transitional government in Syria.


But Russia has repeated warnings that recognition of al-Khatib's coalition, notably by the United States, is undermining diplomacy, and rejected U.S. contentions that the Geneva agreement sent a clear message that Assad should step down.


Nuland said the Brahimi meetings could lay the framework for a political structure to follow Assad:


"We've said all along to the Russians that we are concerned that the longer that this goes on, and the longer it takes us to get to an alternative political path for Syria, the only path is going to be the military one and that is just going to bring more violence.


"We all ought to be working together."


Bogdanov, whose government has suggested that Assad himself should be allowed to see through a transition he has promised, suggested the rebels and their allies were set on a military solution and he gave little hint of detente with Washington.


"The fighting will become even more intense and (Syria) will lose tens of thousands and, perhaps, hundreds of thousands of civilians," Bogdanov was quoted as saying. "If such a price for the removal of the president seems acceptable to you, what can we do? We, of course, consider it absolutely unacceptable."


The head of NATO, Anders Fogh Rasmussen, said elsewhere: "I think the regime in Damascus is approaching collapse."


A U.S. official said: "Assad probably still believes that Syria is his and illusions can die hard. But Assad and those closest to him have got to be feeling the psychological strain of fighting a long war that is not going their way."


DAMASCUS BATTLES


But Al-Khatib, who played down Western concerns of sectarian Sunni Islamists in rebel ranks, warned that the fighting was far from over, even as it has begun to rattle the heart of Assad's power in Damascus. On Wednesday, a car bomb killed at least 16 people in a nearby town which is home to many military families.


"The noose is tightening around the regime," al-Khatib said.


"(But) the regime still has power. People think that the regime is finished, but it still has power left, but it is demoralized and however long it lasted its end is clear."


Day and night, Damascenes can hear the thunderous sound of bombardment aimed at rebel-held and contested neighborhoods.


The city's streets have now turned into a labyrinth of checkpoints and road blocks, with several major roads permanently closed off to traffic by concrete barriers.


"We escape from one place and trouble follows," said one grandmother, Um Hassan, as she described to Reuters her family's flight from one neighborhood to another as fighting seeps into the capital. "I don't know where we can keep running to."


Nonetheless, al-Khatib played down demands for their allies to provide heavier weaponry - a request long resisted by governments wary of anti-aircraft missiles and other hardware reaching Islamist rebels who might turn them against the West.


"The Syrian people ... no longer need international forces to protect them," he said, not specifying whether he meant a no-fly zone, arms supplies or other military support.


The opposition chief said he was willing to listen to proposals for Assad to escape with his life - "The best thing is that he steps down and stops drinking the blood of the Syrian people" - and outlined three scenarios for a change of power:


Al-Khatib ruled out the Russian proposal suggesting Assad hand over power to a transitional government while remaining president, saying it was "disgraceful for a slaughtered nation to accept to have a killer and criminal at its head".


The British-based Syrian Observatory said war planes bombed rebel-held eastern suburbs of Damascus on Thursday and artillery was hitting Daraya and Moadamiyeh, southwestern areas near the centre where rebels have been fighting for a foothold.


Syria has relied on war planes and helicopters to bombard rebel districts but Damascus denied accusations by U.S. and NATO officials that it had fired Scud missiles in recent days. The foreign ministry said the long-range missiles were not used against "terrorist groups," a term it uses for the rebels.


At least 40,000 people have been killed in Syria's uprising, which started in March 2011 with street protests which were met with gunfire by Assad's security forces, and which spiraled into the most enduring and destructive of the Arab revolts.


(Additional reporting by Steve Gutterman in Moscow and Andrew Quinn in Washington; Writing by Alastair Macdonald; Editing by Michael Roddy) For an interactive look at the uprising in Syria, please click on http://link.reuters.com/rut37s



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Sweet and Lowe: How a captivating Twitter feed sealed Rob Lowe’s comeback






By Virginia Heffernan


@RobLowe follows 135 people on Twitter. Among them is not @HilaryASwank, the Oscar-winning ex-wife of his brother, @ichadlowe.






@RobLowe does, however, follow @ikimlowe, the new wife of his brother, who helpfully identifies herself on the site as “wife of @ichadlowe.” Would @HilaryASwank, a formidable actor who does not use Twitter very often, have consented to live in her lesser-known husband’s Twitter shadow? Perhaps not. Perhaps that’s why they div—


But what am I doing? This is where Twitter can lead a person: to deranged, speculative pointless nosiness. To mindlessly customizing a version of Us Weekly magazine by reading between the Twitter lines of who follows whom, who tags whom, who seeks whose attention with tags and hashtags.


So forget that. I’m just going to keep following @RobLowe. His Twitter feed is one for the ages, and he’s on a tear, having just hit half a million followers. And I swear I follow Rob Lowe for the epigrams and jokes—why else?—though, yes, I once had a poster of the matinee idol from “St. Elmo’s Fire” on my wall. (But only because I learned that science had proven that he and Jaclyn Smith were the most perfectly symmetrical, beautiful humans ever to exist—and who ever would exist. It was a duty of citizenship in the human race to have a poster!)


Not long after “St. Elmo’s Fire,” @RobLowe, the record reflects, had a speedy fall after an early-adopter DIY sex tape (1988! Paris Hilton’s was not ’til 2003!). As Lowe’s first-rate autobiography reports, this was part of a bigger personal unraveling into promiscuity and dissipation on an NBA/Lohan scale. Eventually Lowe found deliverance in sobriety (which he names as one of his interests on Twitter) and the love of a good woman, @Sheryl_Lowe (business) or @Sheryllowe61 (personal).


Lowe also evidently found something in Twitter. As his career has done more than rebound—it has fully realized itself, with his comic-stilted-earnest-inimitable performances on “The West Wing,” “Brothers & Sisters” and, now, “Parks and Recreation”—he has built a sturdy and complementary Twitter feed.


Lowe’s Twitter presence seals his comeback. It is freewheeling, wide-ranging and among his best work. The onetime incorrigible gadfly, who might have died outside the Viper Room like River Phoenix or been left howling at the moon like Charlie Sheen, now knows who he is, has a gift for observational humor and lives his life with something that looks like joy.


Lowe recently retweeted this observation from the Telegraph’s Damian Thompson:


More:


Another Lowe tweet:


Which of us–especially those of us who were born in the 1960s–doesn’t feel like saying that aloud every year?


And speaking of Lowe’s vintage, it’s appealing that he’s not afraid to use our generation’s corny locutions on young-skewing Twitter. As he put it recently:


The merciless “pumped” kills me. Do people never leave the slang (or bands?) of their 20s? Lowe is big on “dude,” too.


At the same time, Lowe seems to enjoy aging:


He wrote this last month, referring to Chris Traeger, his character on “Parks and Recreation,” who exercises without cease, gunning for eternal life. In Traeger’s intense specificity—his needs in beverages, for example, are so idiosyncratic as to require paragraphs of instructions—he is a perfect new-sitcom archetype. One thing he is not is cool.


And neither is Lowe cool in his Twitter feed. Often he is sending out blessings to his followers or his family, or reveling in mere existence, with the hashtag #LoveLife. Lowe’s autobiography makes clear that the Handsome Man, a cultural slot in which he found himself early on, invites way too much resentment if he doesn’t start spoofing himself with gusto. It’s imperative he find the joke in life, and the dignity in himself, or he’ll yield to prettiness and silliness, as well as drugs and sex tapes.


Look on that @RobLowe Twitter feed, and learn from it, ye handsome millennials!


Social Media News Headlines – Yahoo! News


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Chris Pratt Loves Anna Faris's Post-Baby Booty




Celebrity Baby Blog





12/13/2012 at 11:00 AM ET



Chris Pratt Loves Anna Faris' Post Baby Booty
CL/Splash News Online


For actor Chris Pratt, bigger is better — at least when it comes to his wife’s body after baby.


Since welcoming their first child, Jack, the actress has been taking her time to shed the pregnancy pounds, attributing any weight loss to carrying around the couple’s 3-month-old son.


“I think it’s from hauling around the little guy,” Faris tells E!, adding she prefers to “cherish” her baby boy rather than hitting the gym. “I’m trying to do it without help. So it’s been a lot of lifting.”


But according to the new mom, the pressure from Pratt is off … or rather on — to keep some of her curves! “I have the sweetest husband. He makes me feel good at any weight,” Faris, 36, shares.


“In fact, I kinda think that he likes it when my butt is a little bit bigger.”



And just in case there’s any doubt to the Zero Dark Thirty star loving her backside assets, Pratt, 33, quips, “I’ll take it. I like it. Don’t work too hard.”


– Anya Leon


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Fewer health care options for illegal immigrants


ALAMO, Texas (AP) — For years, Sonia Limas would drag her daughters to the emergency room whenever they fell sick. As an illegal immigrant, she had no health insurance, and the only place she knew to seek treatment was the hospital — the most expensive setting for those covering the cost.


The family's options improved somewhat a decade ago with the expansion of community health clinics, which offered free or low-cost care with help from the federal government. But President Barack Obama's health care overhaul threatens to roll back some of those services if clinics and hospitals are overwhelmed with newly insured patients and can't afford to care for as many poor families.


To be clear, Obama's law was never intended to help Limas and an estimated 11 million illegal immigrants like her. Instead, it envisions that 32 million uninsured Americans will get access to coverage by 2019. Because that should mean fewer uninsured patients showing up at hospitals, the Obama program slashed the federal reimbursement for uncompensated care.


But in states with large illegal immigrant populations, the math may not work, especially if lawmakers don't expand Medicaid, the joint state-federal health program for the poor and disabled.


When the reform has been fully implemented, illegal immigrants will make up the nation's second-largest population of uninsured, or about 25 percent. The only larger group will be people who qualify for insurance but fail to enroll, according to a 2012 study by the Washington-based Urban Institute.


And since about two-thirds of illegal immigrants live in just eight states, those areas will have a disproportionate share of the uninsured to care for.


In communities "where the number of undocumented immigrants is greatest, the strain has reached the breaking point," Rich Umbdenstock, president of the American Hospital Association, wrote last year in a letter to Obama, asking him to keep in mind the uncompensated care hospitals gave to that group. "In response, many hospitals have had to curtail services, delay implementing services, or close beds."


The federal government has offered to expand Medicaid, but states must decide whether to take the deal. And in some of those eight states — including Texas, Florida and New Jersey — hospitals are scrambling to determine whether they will still have enough money to treat the remaining uninsured.


Without a Medicaid expansion, the influx of new patients and the looming cuts in federal funding could inflict "a double whammy" in Texas, said David Lopez, CEO of the Harris Health System in Houston, which spends 10 to 15 percent of its $1.2 billion annual budget to care for illegal immigrants.


Realistically, taxpayers are already paying for some of the treatment provided to illegal immigrants because hospitals are required by law to stabilize and treat any patients that arrive in an emergency room, regardless of their ability to pay. The money to cover the costs typically comes from federal, state and local taxes.


A solid accounting of money spent treating illegal immigrants is elusive because most hospitals do not ask for immigration status. But some states have tried.


California, which is home to the nation's largest population of illegal immigrants, spent an estimated $1.2 billion last year through Medicaid to care for 822,500 illegal immigrants.


The New Jersey Hospital Association in 2010 estimated that it cost between $600 million and $650 million annually to treat 550,000 illegal immigrants.


And in Texas, a 2010 analysis by the Health and Human Services Commission found that the agency had provided $96 million in benefits to illegal immigrants, up from $81 million two years earlier. The state's public hospital districts spent an additional $717 million in uncompensated care to treat that population.


If large states such as Florida and Texas make good on their intention to forgo federal money to expand Medicaid, the decision "basically eviscerates" the effects of the health care overhaul in those areas because of "who lives there and what they're eligible for," said Lisa Clemans-Cope, a senior researcher at the Urban Institute.


Seeking to curb expenses, hospitals might change what qualifies as an emergency or cap the number of uninsured patients they treat. And although it's believed states with the most illegal immigrants will face a smaller cut, they will still lose money.


The potential impacts of reform are a hot topic at MD Anderson Cancer Center in Houston. In addition to offering its own charity care, some MD Anderson oncologists volunteer at a county-funded clinic at Lyndon B. Johnson General Hospital that largely treats the uninsured.


"In a sense we've been in the worst-case scenario in Texas for a long time," said Lewis Foxhall, MD Anderson's vice president of health policy in Houston. "The large number of uninsured and the large low-income population creates a very difficult problem for us."


Community clinics are a key part of the reform plan and were supposed to take up some of the slack for hospitals. Clinics received $11 billion in new funding over five years so they could expand to help care for a swell of newly insured who might otherwise overwhelm doctors' offices. But in the first year, $600 million was cut from the centers' usual allocation, leaving many to use the money to fill gaps rather than expand.


There is concern that clinics could themselves be inundated with newly insured patients, forcing many illegal immigrants back to emergency rooms.


Limas, 44, moved to the border town of Alamo 13 years ago with her husband and three daughters. Now single, she supports the family by teaching a citizenship class in Spanish at the local community center and selling cookies and cakes she whips up in her trailer. Soon, she hopes to seek a work permit of her own.


For now, the clinic helps with basic health care needs. If necessary, Limas will return to the emergency room, where the attendants help her fill out paperwork to ensure the government covers the bills she cannot afford.


"They always attended to me," she said, "even though it's slow."


___


Sherman can be followed on Twitter at https://twitter.com/chrisshermanAP .


Plushnick-Masti can be followed on Twitter at https://twitter.com/RamitMastiAP .


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Stock futures rise with Wall Street set for bounce back


NEW YORK (Reuters) - U.S. stock index futures rose on Friday, pointing to a modest rebound for Wall Street after Thursday's retreat, though investors remained concerned about a lack of progress by politicians in ongoing fiscal negotiations.


Economic data out of China showed that manufacturing in the world's second-largest economy grew at its fastest pace in 14 months in December. That indicated China's economy was on the mend, encouraging news for its key trading partners such as the United States.


However, in Europe, the euro zone's manufacturing and services sectors showed only small signs of improvement and remained in contraction territory.


"If we assume we're going to have a continuation of a shallow recession in the euro zone, the global economy can actually increase in terms of GDP with a pick up in the pace of the Chinese economy," said Art Hogan, managing director of Lazard Capital Markets in New York.


"The bad news is, in large part, we've seen the market ignore relatively good news in the economic data stream as we focus on the fiscal cliff."


President Barack Obama and House of Representatives Speaker John Boehner held a "frank" meeting Thursday to try to break an impasse in negotiations over the "fiscal cliff," tax hikes and spending cuts set to kick in early in 2013.


Frustration has mounted over the lack of progress in the discussions, with market participants' worries reflected in a 0.6 percent drop in the S&P 500 on Thursday. Investors are concerned that going over the cliff could tip the economy back into recession. While a deal is expected to be reached eventually, a drawn-out debate - like the one seen over 2011's debt ceiling - can erode confidence.


"I think the market is convinced, due to the fact that we haven't seen much of a pullback, that some (fiscal) compromise will happen before the end of the year," said Hogan.


Worries over the outcome of the talks ended the S&P 500's six-day winning streak on Thursday, but the index has performed well over the past month. On Wednesday, the S&P hit its highest intraday level since late October.


S&P 500 futures rose 2 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 32 points, and Nasdaq 100 futures added 1 point.


The consumer price index for November is due at 8:30 a.m. ET, while industrial production will be released at 9:15 a.m. ET.


Shares of Adobe Systems were up 5.8 percent at $37.59 in premarket trading after the company said it expected profit and earnings to grow from 2013 onwards.


Sprint Nextel Corp's $2.1 billion offer to buy out Clearwire Corp appeared to be running into trouble on Thursday, as some shareholders said they wanted more money, while Softbank Corp set a cap on how much Sprint could pay.


Clearwire shed 1.6 percent to $3.11 in light premarket trading.


Apple's iPhone 5 will be released in China on Friday but its longer-term hopes may depend on new technology being tested by China's top telecoms carrier. Shares of Apple were down 1.7 percent at $520.50 in premarket trading.


(Editing by Bernadette Baum)



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Russia says Syrian rebels might win; car bomb kills 16


BEIRUT (Reuters) - Syrian rebels are gaining ground and might win, Russia's deputy foreign minister said on Thursday, in the starkest such admission from a major ally of President Bashar al-Assad.


"One must look the facts in the face," Russia's state-run RIA quoted Mikhail Bogdanov as saying. "Unfortunately, the victory of the Syrian opposition cannot be ruled out."


Bogdanov, who is Kremlin's special envoy for Middle East affairs, said the Syrian government was "losing control of more and more territory" and that Moscow was preparing plans to evacuate Russian citizens if necessary.


Advancing rebels now hold an almost continuous arc of territory from the east to the southeast of Damascus, despite fierce army bombardments designed to drive them back.


A car bomb killed at least 16 men, women and children in Qatana, a town about 25 km (15 miles) southwest of Damascus where many soldiers live, activists and state media said.


The explosion occurred in a residential area for soldiers in Qatana, which is near several army bases, said Rami Abdelrahman, head of the pro-opposition Syrian Observatory for Human Rights.


He put the death toll as 17, including seven children and two women. State news agency SANA said 16 people had died.


State television blamed the blast on "terrorists" - its term for rebels - and showed footage of soldiers walking by a partly collapsed building, with rubble and twisted metal on the road.


The attack follows three bombs at the Interior Ministry on Wednesday evening, in which state news agency SANA said five people were killed, including Abdullah Kayrouz, a member of parliament from the Syrian Social Nationalist Party.


Apart from gaining territory in the outskirts of Damascus in recent weeks, rebels have also made hit-and-run attacks or set off bombs within the capital, often targeting state security buildings or areas seen as loyal to Assad, such as Jaramana, where twin bombs killed 34 people in November.


BACK TO THE WALL


Insurgents launched an offensive on Damascus after a July 18 bombing that killed four of Assad's closest aides, including his feared brother-in-law Assef Shawkat, but were later pushed back.


With his back to the wall, Assad is reported to be turning ever deadlier weapons on his adversaries.


U.S. NATO officials said on Wednesday that the Syrian military had fired Scud-style ballistic missiles, which are powerful but not very accurate, against rebels in recent days.


Human Rights Watch said some populated areas had been hit by incendiary bombs, containing flammable materials such as napalm, thermite or white phosphorous, which can set fire to buildings or cause severe burns and respiratory damage.


The British-based Syrian Observatory said war planes were bombing rebel-held eastern suburbs of Damascus on Thursday and artillery was hitting Daraya and Moadamiyeh, southwestern areas near the centre where rebels have been fighting for a foothold.


At least 40,000 people have been killed in Syria's uprising, which started in March 2011 with street protests which were met with gunfire by Assad's security forces, and which spiraled into the most enduring and destructive of the Arab revolts.


The United States, European powers and Arab states bestowed their official blessing on Syria's newly-formed opposition coalition on Wednesday, despite increasing signs of Western unease at the rise of militant Islamists in the rebel ranks.


Western nations at "Friends of Syria" talks in Marrakech, Morocco rallied around a new opposition National Coalition formed last month under moderate Islamist cleric Mouaz Alkhatib.


Russia, which along with China has blocked any U.N. Security Council measures against Assad, criticized Washington's decision to grant the coalition formal recognition, saying it appeared to have abandoned any effort to reach a political solution.


Bogdanov's remarks were the clearest sign yet that Russia is preparing for the possible defeat of Assad's government.


"We are dealing with issues of preparations for an evacuation. We have mobilization plans and are clarifying where our citizens are located," Bogdanov said.



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John McAfee Deported from Guatemala, Back in U.S.















12/13/2012 at 07:50 AM EST







John McAfee in Guatemala


Guatemala's National Police/AP


The latest chapter in the John McAfee saga was written Wednesday, as the anti-virus software pioneer was released from Guatemalan custody and flown to Miami, where he was met by federal officials.

"It was the most gracious expulsion I've ever experienced," McAfee, 67, told ABC News. "Compared to my past two wives that expelled me, this isn't a terrible trip."

He added: "They took me out of my cell and put me on a freaking airplane. I had no choice in the matter."

McAfee is wanted for questioning in the November gunshot murder of a neighbor in Belize. He has denied any wrongdoing, yet fled Belize – going undercover in disguise for several weeks – and sought asylum in Guatemala.

Authorities there arrested him for entering the country illegally. But after an eventful detention, in which McAfee was briefly hospitalized after suffering a nervous collapse, the country evidently felt it prudent to return McAfee to his home soil.

It was not clear Wednesday whether authorities in Miami escorted McAfee away to shield him from the media or because they wanted to question him.

McAfee said he has retained a lawyer in the U.S. and plans to seek a visa for his 20-year-old Belizean girlfriend.

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