Wall Street erases earlier losses; M&A news, data support

NEW YORK (Reuters) - Stocks erased earlier losses to trade flat by late morning on Thursday as a flurry of M&A deals and better-than-expected jobs data fed optimism to the market, although signs of economic weakness in Europe and Japan curbed appetite for risky assets.


Among the M&A announcements, shares of H.J. Heinz Co jumped 20 percent to $72.50 after it said Warren Buffett's Berkshire Hathaway and 3G Capital will buy the company for $72.50 a share, or $28 billion including debt.


Also supporting the market, U.S. data showed the number of Americans filing new claims for unemployment benefits fell more than expected in the latest week. But data out of Europe showed a contraction of 0.6 percent in gross domestic product in the euro zone, the steepest for the bloc since the first quarter of 2009. Japan's GDP shrank 0.1 percent in the fourth quarter, crushing expectations of a modest return to growth.


"The only reason a company buys another company is because they see an upside. Even though we are at multiyear highs, this kind of activity shows that there is more room for a rally, feeding optimism to the market," said Randy Frederick, director of trading and derivatives at Charles Schwab.


"The jobless claims numbers were solid, and with the European market closing, the news out of Europe is pretty much done for the day."


But Frederick added the market would have to see small corrections before breaking above current levels, where indexes have been hovering for almost two weeks. The S&P 500 is up more than 6 percent so far this year, near its highest level since November 2007.


The Dow Jones industrial average <.dji> was down 1.20 points, or 0.01 percent, at 13,981.71. The Standard & Poor's 500 Index <.spx> was up 0.03 points, or 0.00 percent, at 1,520.36. The Nasdaq Composite Index <.ixic> was down 2.65 points, or 0.08 percent, at 3,194.23.


Constellation Brands soared more than 35 percent to $43.26 after terms of its takeover of Mexican brewer Grupo Modelo were revised, granting it perpetual rights to distribute Corona and other Modelo brands in the United States. AB InBev ADRs gained 5.5 percent to $93.08.


American Airlines and US Airways Group said they plan to merge in a deal that will form the world's biggest air carrier, with an equity valuation of about $11 billion. US Airways shares fell 2.4 percent to $14.31.


Shrinking European economies translated to a 5-percent drop in revenue from the region for Cisco Systems , which nonetheless beat estimates as it reported its results late Wednesday. The company's shares slid 1.4 percent to $20.84.


General Motors Co reported a weaker-than-expected fourth-quarter profit, also citing bigger losses in Europe alongside lower prices in its core North American market. The stock was off 0.8 percent at $28.42.


(Reporting By Angela Moon; Editing by Nick Zieminski)



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India Ink: Image of the Day: Feb. 13

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Tom Brokaw Welcomes First Grandson















02/13/2013 at 11:45 AM EST



This just in!

Tom Brokaw welcomed a grandson on Monday, a spokesperson for NBC confirms to PEOPLE.

The NBC News Special Correspondent's daughter, Sarah Brokaw – a licensed therapist specializing in relational dynamics and a New York Times best selling author – gave birth to Archer Thomas Merritt Brokaw.

Sarah's book, Fortytude: Making the Next Decades the Best Years of Your Life – through the 40s, 50s and Beyond, explores the core values of aging.

Archer is the first grandson born to the news anchor, 73, who has six granddaughters.

With Reporting by CHARLOTTE TRIGGS

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Wall Street rises, S&P hits highest since November '07

DEAR ABBY: My daughters are attractive young women, both doing well in their professional careers. "Melanie," who is 27, is married to "Sam," an extremely attractive and successful man.My 30-year-old daughter, "Alicia," has been divorced for a year. Her marriage failed two years ago because she and her husband had an appetite for sex outside their marriage. While I was disturbed about that, I was horrified to learn that Melanie allows her sister to occasionally have sex with Sam.Melanie's argument is that Sam is less likely to cheat given this situation. ...
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India Ink: Image of the Day: Feb. 12

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Julianna Margulies: Every Day with My Son Is a New Adventure




Celebrity Baby Blog





02/12/2013 at 11:00 AM ET



Julianna Margulies LEGO/Duplo Read Build Play
Timothy Hyatt/Getty


Reading is fundamental for Julianna Margulies, especially when it comes to her 5-year-old son Kieran Lindsay.


“Since I’ve had a child [there hasn't been a day] that we haven’t read to him at night,” The Good Wife star, 46, tells PEOPLE Thursday at an event she hosted for LEGO/Duplo’s Read! Build! Play!


“And if I can’t be there my husband is or the babysitter is. Somebody is always there reading to him before he goes to sleep.”


To that end, weekly library trips have become routine in Margulies’ household.

“We have a great little neighborhood library, so once a week we take seven books out and then we bring them back and switch them,” she explains. “If we don’t go on a Monday, Kieran’s like, ‘Wait — it’s library day.’”


Margulies is continually surprised by what she refers to as her son’s “undying curiosity.”


“Everything is new and exciting, so it makes you look through their eyes and see the world that way. He wakes up 6 a.m. and just starts talking. Everything is interesting. And it can be anything — it can be a shadow on the wall or a prism light that you suddenly see a rainbow coming out of. Every day is a new adventure with him.”


–Shakthi Jothianandan


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Pope shows lifetime jobs aren't always for life


The world seems surprised that an 85-year-old globe-trotting pope who just started tweeting wants to resign, but should it be? Maybe what should be surprising is that more leaders his age do not, considering the toll aging takes on bodies and minds amid a culture of constant communication and change.


There may be more behind the story of why Pope Benedict XVI decided to leave a job normally held for life. But the pontiff made it about age. He said the job called for "both strength of mind and body" and said his was deteriorating. He spoke of "today's world, subject to so many rapid changes," implying a difficulty keeping up despite his recent debut on Twitter.


"This seemed to me a very brave, courageous decision," especially because older people often don't recognize their own decline, said Dr. Seth Landefeld, an expert on aging and chairman of medicine at the University of Alabama at Birmingham.


Age has driven many leaders from jobs that used to be for life — Supreme Court justices, monarchs and other heads of state. As lifetimes expand, the woes of old age are catching up with more in seats of power. Some are choosing to step down rather than suffer long declines and disabilities as the pope's last predecessor did.


Since 1955, only one U.S. Supreme Court justice — Chief Justice William Rehnquist — has died in office. Twenty-one others chose to retire, the most recent being John Paul Stevens, who stepped down in 2010 at age 90.


When Thurgood Marshall stepped down in 1991 at the age of 82, citing health reasons, the Supreme Court justice's answer was blunt: "What's wrong with me? I'm old. I'm getting old and falling apart."


One in 5 U.S. senators is 70 or older, and some have retired rather than seek new terms, such as Hawaii's Daniel Akaka, who left office in January at age 88.


The Netherlands' Queen Beatrix, who just turned 75, recently said she will pass the crown to a son and put the country "in the hands of a new generation."


In Germany, where the pope was born, Chancellor Angela Merkel, who is 58, said the pope's decision that he was no longer fit for the job "earns my very highest respect."


"In our time of ever-lengthening life, many people will be able to understand how the pope as well has to deal with the burdens of aging," she told reporters in Berlin.


Experts on aging agreed.


"People's mental capacities in their 80s and 90s aren't what they were in their 40s and 50s. Their short-term memory is often not as good, their ability to think quickly on their feet, to execute decisions is often not as good," Landefeld said. Change is tougher to handle with age, and leaders like popes and presidents face "extraordinary demands that would tax anybody's physical and mental stamina."


Dr. Barbara Messinger-Rapport, geriatrics chief at the Cleveland Clinic, noted that half of people 85 and older in developed countries have some dementia, usually Alzheimer's. Even without such a disease, "it takes longer to make decisions, it takes longer to learn new things," she said.


But that's far from universal, said Dr. Thomas Perls, an expert on aging at Boston University and director of the New England Centenarians Study.


"Usually a man who is entirely healthy in his early 80s has demonstrated his survival prowess" and can live much longer, he said. People of privilege have better odds because they have access to good food and health care, and tend to lead clean lives.


"Even in the 1500s and 1600s there were popes in their 80s. It's remarkable. That would be today's centenarians," Perls said.


Arizona Sen. John McCain turned 71 while running for president in 2007. Had he won, he would have been the oldest person elected to a first term as president. Ronald Reagan was days away from turning 70 when he started his first term as president in 1981; he won re-election in 1984. Vice President Joe Biden just turned 70.


In the U.S. Senate, where seniority is rewarded and revered, South Carolina's Strom Thurmond didn't retire until age 100 in 2002. Sen. Robert Byrd of West Virginia was the longest-serving senator when he died in office at 92 in 2010.


Now the oldest U.S. senator is 89-year-old Frank Lautenberg of New Jersey. The oldest congressman is Ralph Hall of Texas who turns 90 in May.


The legendary Alan Greenspan was about to turn 80 when he retired as chairman of the Federal Reserve in 2006; he still works as a consultant.


Elsewhere around the world, Cuba's Fidel Castro — one of the world's longest serving heads of state — stepped down in 2006 at age 79 due to an intestinal illness that nearly killed him, handing power to his younger brother Raul. But the island is an example of aged leaders pushing on well into their dotage. Raul Castro now is 81 and his two top lieutenants are also octogenarians. Later this month, he is expected to be named to a new, five-year term as president.


Other leaders who are still working:


—England's Queen Elizabeth, 86.


—Abdullah bin Abd al-Aziz al-Saud, king of Saudi Arabia, 88.


—Sabah al-Ahmad al-Jaber al-Sabah, emir of Kuwait, 83.


—Ruth Bader Ginsburg, U.S. Supreme Court associate justice, 79.


__


Associated Press writers Paul Haven in Havana, Cuba; David Rising in Berlin; Seth Borenstein, Mark Sherman and Matt Yancey in Washington, and researcher Judy Ausuebel in New York contributed to this report.


___


Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP


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Wall Street pauses after gains, awaits Obama address

NEW YORK (Reuters) - Stocks were little changed on Tuesday, with the S&P 500 holding near multi-year highs ahead of President Barack Obama's State of the Union address.


The economy will be a major topic of Obama's speech before a joint session of Congress set for 9 p.m. (0200 GMT Wednesday). Investors will listen for any clues on a deal with Republicans to avert automatic spending cuts due to take effect March 1.


The S&P 500 has risen in the past six weeks and is up 6.5 percent so far this year. But gains have been harder to come by since the benchmark S&P index hit a five-year high on February 1. The market has to consolidate strong gains at the year's start while investors search for reasons to drive stocks higher.


"The market itself at this point has got to digest this six-plus percentage point move ... we are due for that pause," said Drew Nordlicht, managing director at HighTower Advisors in San Diego.


Investors are "looking for more data at this point going forward to support the thesis that corporate profits will continue to grow and the economy has turned the corner."


The White House has signaled Obama in his speech will urge U.S. investment in infrastructure, manufacturing, clean energy and education. He is also expected to call for comprehensive trade talks with the European Union.


With earnings season moving to its latter stages, of the 353 companies in the S&P 500 that have reported earnings, 70.3 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters according to Thomson Reuters data through Tuesday morning.


Fourth-quarter earnings for S&P 500 companies are estimated to have risen 5.3 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


The Dow Jones industrial average <.dji> gained 27.65 points, or 0.20 percent, to 13,998.89. The Standard & Poor's 500 Index <.spx> added 1.03 points, or 0.07 percent, to 1,518.04. The Nasdaq Composite Index <.ixic> dipped 1.60 points, or 0.05 percent, to 3,190.41.


Coca-Cola Co shares fell 1.9 percent to $37.88 and were the biggest drag on the Dow after the world's largest soft drink maker reported quarterly revenue slightly below analysts' estimates, hurt by a weaker-than-expected performance in Europe.


Housing shares climbed, led by a 12.9 percent jump in Masco Corp to $20.09 after the home improvement product maker posted fourth-quarter earnings and said it expects new home construction to show strong growth in 2013. The PHLX housing sector index <.hgx> gained 2.7 percent.


Avon Products shares surged 16.7 percent to $20.16 after the beauty products company reported a better-than-expected quarterly profit.


Goodyear Tire & Rubber shares lost 3.1 percent to $13.48 after it posted a stronger-than-expected quarterly profit but cut its 2013 forecast due to weakness in the European automotive market.


Michael Kors Holdings shares jumped 10.9 percent to $63.24 after the fashion company handily beat Wall Street's estimates and raised its full-year outlook.


(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)



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The Lede: Latest Updates on the Pope’s Resignation

The Lede is providing updates on Pope Benedict XVI’s announcement on Monday that he intends to resign on Feb. 28, less than eight years after he took office, the first pope to do so in six centuries.
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Gisele Bündchen Shows Off Post-Baby Body in Bikini















02/11/2013 at 11:30 AM EST



Whether showing off her baby bump – as she did only last November – or showing off her post-baby body, as she does here – Gisele Bündchen knows how to get heads to turn.

The Brazilian beauty introduced 9-week-old daughter Vivian Lake Brady in a Facebook posting last Friday, when she was also displaying her washboard stomach while vacationing poolside at her hotel in Hawaii.

With the photo of Vivian, Bündchen, who is on the holiday with husband Tom Brady and their two kids (Vivian's brother is Benjamin, 3), wrote, "Love is everything!!! Happy friday, much love to all."

As for her figure, the supermodel said to Vogue U.K. in 2011, "Like I tell my five sisters, who don't work at it very hard at all, whatever you put in, you get out. I'm not afraid of working hard at anything, whatever it is. I just always want to be the best that I can."

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