After decent rally, perhaps time for a pause

NEW YORK (Reuters) - Stocks could struggle to extend their seven-week winning streak as the quarterly earnings period draws to a close and the market bumps into strong technical resistance.


Many analysts say the market could spend the next few weeks consolidating gains that have lifted the benchmark Standard & Poor's 500 <.spx> by 6.6 percent since the start of the year.


The S&P 500 ended up 0.1 percent for the week, recovering from a late sell-off on Friday after a Bloomberg report about slow February sales at Wal-Mart triggered a slide in the retailer's shares. It was the index's seventh week of gains.


Odds of a pullback are increasing, with the market in slightly overbought territory, said Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston.


"I do suspect the closing of the earnings season will lead to at least a pause and possibly a pullback," Zaro said. The S&P 500 could shave 3 to 5 percent between now and early April, he said.


Fourth-quarter earnings have mostly beaten expectations. Year-over-year profit growth for S&P 500 companies is now estimated at 5.6 percent, up from a January 1 forecast for 2.9 percent growth, and 70 percent of companies are exceeding analyst profit expectations, above the 62 percent long-term average, according to Thomson Reuters data.


On Thursday, Wal-Mart, the world's largest retailer, is due to report results, unofficially closing out the earnings period. Investors will be keen to see its quarterly numbers, especially after the Friday's news report that rattled investors.


The S&P 500 has gained 4.3 percent since Alcoa kicked off the earnings season on January 8.


The approaching March 1 deadline for across-the-board federal budget cuts unless Congress reaches a compromise adds another reason for caution, especially with recent economic data indicating the recovery remains bumpy.


Manufacturing output fell 0.4 percent last month, the Federal Reserve said on Friday, but production in November and December was much stronger than previously thought.


TESTING RESISTANCE


The S&P 500 has been trading near five-year highs, and it notched its highest level since November 2007 this week. But the gains have pushed the benchmark index almost as far as it is likely to go in the near term, with strong resistance hovering around 1,525 and 1,540, one analyst said.


As a result, the index is set to move sideways, said Dave Chojnacki, market technician at Street One Financial in Huntington Valley, Pennsylvania. "We just don't have the volume or the catalyst right now" to go above those levels, he said.


At the same time, other analysts say, the market has not shown significant signs of slowing, including a break below 15- and 30-day moving averages.


Such moves would be needed to show that momentum is slowing or that the market is at risk of a correction, said Todd Salamone, director of research for Schaeffer's Investment Research in Cincinnati, Ohio. The S&P 500's 14-day moving average is at 1,511 while the 30-day is at 1,494. The index closed Friday at 1,519.


Recent M&A activity, including news this week of a merger between American Airlines and US Airways Group , helped provide some strength for the market this week and optimism that more deals may be on the way.


In the coming days, the market will focus on minutes from the latest Federal Reserve meeting, due to be released on Wednesday, which could provide support if they suggest the Fed will remain on its current course of aggressive monetary easing.


The Fed minutes released in January spooked markets a bit when they revealed that some Fed officials thought it would be appropriate to consider ending asset purchases later in 2013. U.S. Treasury yields rose on that news, though market worries about a near-term end to quantitative easing have since faded.


Among other companies expected to report earnings next week are Nordstrom , Hewlett-Packard and Marriott International


(Reporting By Caroline Valetkevitch; Editing by Leslie Adler)



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Benedict Says He Will Be ‘Hidden to the World’ in Retirement





VATICAN CITY — Saying he would soon be “hidden to the world,” Pope Benedict XVI took his leave of parish priests and clergy of the Diocese of Rome on Thursday as he offered personal, and incisive, recollections of the Second Vatican Council, the gathering of bishops 50 years ago that set the Roman Catholic Church’s course for the future.




Benedict, who announced his resignation on Monday in a move that stunned the Roman Catholic world, also indicated that he would not hold a public role once his resignation becomes official on Feb. 28. He is the first pope to step down in nearly 600 years.


“Though I am now retiring to a life of prayer, I will always be close to all of you and I am sure all of you will be close to me, even though I remain hidden to the world,” Benedict, 85 and increasingly frail, told the assembly of hundreds of priests, who had greeted him with a long standing ovation and some tears.


Priests in attendance said they felt they had witnessed a powerful moment in church history, one that also humanized a pope who has often seemed remote. “It moved me to see the pope smile,” said Don Mario Filippa, a priest in Rome. “He has found peace within himself.”


“It was a part of history,” said Father Martin Astudillo, 37, an Argentine priest who is studying in Rome. “This is a man of God who at the end of his public role transmits his vision of the church and relationship with the church,” he added. “We saw in a few words a real synthesis of his vision of the church and what he expects from whomever takes over.”


During the reflection — or “chat” in his words — on the Second Vatican Council, Benedict recalled the “incredible” expectations of the bishops going into the gathering.


“We were full of hope, enthusiasm and also of good will,” he said.


But while the council made landmark decisions that would propel the church into the future, much got lost in the media’s interpretation of what transpired, he said, which led to the “calamities” that have marred recent church history.


The media reduced the proceedings “into a political power struggle between different currents of the church,” and they chose sides that suited their individual vision of the world, the pope said.


These messages, not that of the council, entered into the public sphere and that led in the years to “so many calamities, so many problems, seminaries closed, convents that closed, the liturgy trivialized,” the pope said.


Benedict spoke of how the council had explored ideas of “continuity” between the Old and New Testaments, and of the relationship between the Catholic and Jewish faiths, an issue that was thorny during his tenure.


“Even if it’s clear that the church isn’t responsible for the Shoah, it’s for the most part Christians who did this crime,” Benedict said of the Holocaust, adding that this called for a need to “deepen and renovate the Christian conscience,” even if it’s true that “real believers only fought against” Nazi barbarism.


At a news briefing on Thursday, the Rev. Federico Lombardi, the Vatican spokesman, confirmed a report in the Turin newspaper La Stampa that the pope had accidentally hit his head during a trip to Mexico last March. The press corps traveling with the pope was not informed of the accident.


The Vatican newspaper L’Osservatore Romano has reported that the pope had decided to retire after returning from that trip. But Father Lombardi rejected La Stampa’s suggestion that the episode might have prompted the decision.


La Stampa reported that Benedict had gotten up in the middle of the night but could not find the light switch in the unfamiliar environment, and accidentally hit his head on a bathroom sink.


An unidentified prelate on the same trip said the pope came down to breakfast the next morning with blood in his hair, the paper said. There was also blood on the pillow, “and a few drops on the carpet,” the prelate told La Stampa. “But it was not a deep cut, nor was it worrisome,” and it was covered by the pope’s thick hair, the prelate said. The pope did not complain during the day’s events.


Later that night, the prelate said, he heard that the pope’s doctor had reacted by expressing concerns about so much travel, and that Benedict had responded that he too had concerns about traveling.


Father Lombardi said: “I don’t deny that this episode happened, but it didn’t impact on the rest of his trip, nor on his decision to resign. That isn’t linked to one single episode.”


Since Benedict announced the decision, saying he felt he did not have the strength to continue in his ministry, there has been much closer public scrutiny of his health.


On Tuesday, the Vatican confirmed for the first time that the pope had had a pacemaker since his time as a cardinal and had its batteries changed three months ago.


Once retired, Benedict will live in a convent inside Vatican City, and will be tended to by the nuns who currently look after him. Father Lombardi said Benedict’s longtime personal secretary, Archbishop Georg Gänswein, who was also named prefect of the papal household two months ago, would continue to work for him.


Father Lombardi said he saw no conflict of interest if Archbishop Gänswein served the current pope and his successor.


The prefect is responsible for logistical duties, and “in this sense it is not a profound problem, I think,” Father Lombardi said.


Rachel Donadio contributed reporting.



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It's a Girl for Bryan Adams




Celebrity Baby Blog





02/14/2013 at 06:00 PM ET



Bryan Adams Welcomes
Courtesy Bryan Adams


Bryan Adams is in heaven — again!


“Bryan Adams and Alicia Grimaldi welcomed their second baby girl in London earlier this week,” Adam’s rep tells PEOPLE exclusively.


The rocker and Grimaldi, who cofounded his charitable foundation, named their new bundle of joy Lula Rosylea. She joins big sister Bunny, 22 months.


“Lula Rosylea decided to arrive at tea time,” Adams tells PEOPLE. “Rosylea is cockney rhyming slang in London for ‘cup of tea’ and the name Lula comes from Gene Vincent‘s song ‘Be-Bop-A-Lula.’”


The two-time dad’s latest project is his photography book, Exposed.


– Marisa Laudadio


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Study: Fish in drug-tainted water suffer reaction


BOSTON (AP) — What happens to fish that swim in waters tainted by traces of drugs that people take? When it's an anti-anxiety drug, they become hyper, anti-social and aggressive, a study found. They even get the munchies.


It may sound funny, but it could threaten the fish population and upset the delicate dynamics of the marine environment, scientists say.


The findings, published online Thursday in the journal Science, add to the mounting evidence that minuscule amounts of medicines in rivers and streams can alter the biology and behavior of fish and other marine animals.


"I think people are starting to understand that pharmaceuticals are environmental contaminants," said Dana Kolpin, a researcher for the U.S. Geological Survey who is familiar with the study.


Calling their results alarming, the Swedish researchers who did the study suspect the little drugged fish could become easier targets for bigger fish because they are more likely to venture alone into unfamiliar places.


"We know that in a predator-prey relation, increased boldness and activity combined with decreased sociality ... means you're going to be somebody's lunch quite soon," said Gregory Moller, a toxicologist at the University of Idaho and Washington State University. "It removes the natural balance."


Researchers around the world have been taking a close look at the effects of pharmaceuticals in extremely low concentrations, measured in parts per billion. Such drugs have turned up in waterways in Europe, the U.S. and elsewhere over the past decade.


They come mostly from humans and farm animals; the drugs pass through their bodies in unmetabolized form. These drug traces are then piped to water treatment plants, which are not designed to remove them from the cleaned water that flows back into streams and rivers.


The Associated Press first reported in 2008 that the drinking water of at least 51 million Americans carries low concentrations of many common drugs. The findings were based on questionnaires sent to water utilities, which reported the presence of antibiotics, sedatives, sex hormones and other drugs.


The news reports led to congressional hearings and legislation, more water testing and more public disclosure. To this day, though, there are no mandatory U.S. limits on pharmaceuticals in waterways.


The research team at Sweden's Umea University used minute concentrations of 2 parts per billion of the anti-anxiety drug oxazepam, similar to concentrations found in real waters. The drug belongs to a widely used class of medicines known as benzodiazepines that includes Valium and Librium.


The team put young wild European perch into an aquarium, exposed them to these highly diluted drugs and then carefully measured feeding, schooling, movement and hiding behavior. They found that drug-exposed fish moved more, fed more aggressively, hid less and tended to school less than unexposed fish. On average, the drugged fish were more than twice as active as the others, researcher Micael Jonsson said. The effects were more pronounced at higher drug concentrations.


"Our first thought is, this is like a person diagnosed with ADHD," said Jonsson, referring to attention deficit-hyperactivity disorder. "They become asocial and more active than they should be."


Tomas Brodin, another member of the research team, called the drug's environmental impact a global problem. "We find these concentrations or close to them all over the world, and it's quite possible or even probable that these behavioral effects are taking place as we speak," he said Thursday in Boston at the annual meeting of the American Association for the Advancement of Science.


Most previous research on trace drugs and marine life has focused on biological changes, such as male fish that take on female characteristics. However, a 2009 study found that tiny concentrations of antidepressants made fathead minnows more vulnerable to predators.


It is not clear exactly how long-term drug exposure, beyond the seven days in this study, would affect real fish in real rivers and streams. The Swedish researchers argue that the drug-induced changes could jeopardize populations of this sport and commercial fish, which lives in both fresh and brackish water.


Water toxins specialist Anne McElroy of Stony Brook University in New York agreed: "These lower chronic exposures that may alter things like animals' mating behavior or its ability to catch food or its ability to avoid being eaten — over time, that could really affect a population."


Another possibility, the researchers said, is that more aggressive feeding by the perch on zooplankton could reduce the numbers of these tiny creatures. Since zooplankton feed on algae, a drop in their numbers could allow algae to grow unchecked. That, in turn, could choke other marine life.


The Swedish team said it is highly unlikely people would be harmed by eating such drug-exposed fish. Jonsson said a person would have to eat 4 tons of perch to consume the equivalent of a single pill.


Researchers said more work is needed to develop better ways of removing drugs from water at treatment plants. They also said unused drugs should be brought to take-back programs where they exist, instead of being flushed down the toilet. And they called on pharmaceutical companies to work on "greener" drugs that degrade more easily.


Sandoz, one of three companies approved to sell oxazepam in the U.S., "shares society's desire to protect the environment and takes steps to minimize the environmental impact of its products over their life cycle," spokeswoman Julie Masow said in an emailed statement. She provided no details.


___


Online:


Overview of the drug: http://www.nlm.nih.gov/medlineplus/druginfo/meds/a682050.html


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Wall Street ends slightly higher, helped by acquisitions

NEW YORK (Reuters) - The S&P 500 eked out a small gain for a third straight session on Thursday, helped by a flurry of merger activity, though investors see no catalysts to lift the market further with major averages near multi-year highs.


The market's slowed advance took the S&P 500 to its highest intraday level since November 2007 on Wednesday. While the index notched its third straight day of gains, none was more than 0.2 percent.


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 food company for $72.50 a share, or $28 billion including debt. Berkshire's class B shares rose 1.3 percent to $99.21.


Also supporting the market was data showing the number of Americans filing new claims for unemployment benefits fell more than expected in the latest week. The CBOE Volatility index <.vix> fell 2.4 percent, dropping to 12.67.


"While I'm not bearish, I don't see many upside motivations at these levels," said Donald Selkin, chief market strategist at National Securities in New York, who cited the low level of the VIX as a sign the market was overbought.


Equities have struggled to break above current levels where they have been hovering for almost two weeks. The S&P 500 is up more than 6 percent so far this year.


"We need to digest some of our gains to go higher, but people are so eager to buy on the dips that we're not even seeing dips anymore. People are just chasing the market higher," said Selkin, who helps oversee about $3 billion in assets.


Stocks fell earlier after a report the euro zone's gross domestic product contracted by the steepest amount since the first quarter of 2009. In addition, Japan's GDP shrank 0.1 percent in the fourth quarter, crushing expectations of a modest return to growth.


The Dow Jones industrial average <.dji> was down 9.52 points, or 0.07 percent, at 13,973.39. The Standard & Poor's 500 Index <.spx> was up 1.05 points, or 0.07 percent, at 1,521.38. The Nasdaq Composite Index <.ixic> was up 1.78 points, or 0.06 percent, at 3,198.66.


Constellation Brands soared 37 percent to $43.75 after AB InBev's deal to take over Mexican brewer Grupo Modelo was revised to grant Constellation perpetual rights to distribute Corona and other Modelo brands in the United States. U.S. shares of AB InBev gained 5.1 percent to $92.77.


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 4.6 percent to $13.99.


Weakness in Europe contributed 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 dipped 0.7 percent to $20.99.


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 3.3 percent to $27.73.


Only five more stocks rose than fell on the New York Stock Exchange, while 51 percent of Nasdaq-listed shares closed higher.


Volume was light, with about 6.36 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average so far this year of about 6.48 billion shares.


(Editing by Nick Zieminski and Kenneth Barry)



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IHT Special: Tunisia Sinks Back Into Turmoil







TUNIS — Following the murder of a leading opposition politician, Tunisians are asking whether the Arab Spring, which began in their country, has accomplished much of anything. They are disenchanted with the fits and starts of the transition from dictatorship to something else.




“Nobody likes the situation and this government has to change,” said Rabbeh Souly, 28, who sped up her steps on the pavement in central Tunis after witnessing a mugging. “They need to fix the things that concern people like unemployment and poverty. Before, at least things were calm and safe. I regret Ben Ali is gone.”


She was speaking of the longtime dictator Zine el-Abidine Ben Ali, who was ousted two years ago. His departure ushered in a transition coalition government led by the Islamists.


Now Tunisia is at a crossroads. Violence has been escalating for months and the general political atmosphere has been deteriorating. This was underscored by the murder of leftist opposition leader Chokri Belaid, who was shot in front of his house by unidentified assailants last week. The killing came as a shock to both ordinary people and to the political establishment.


Thousands of Tunisians took to the streets after Mr. Belaid’s death, vowing revenge in scenes reminiscent of the protests in 2011.


“With our souls, with our blood, we will avenge you Belaid,” they chanted in the rain on a march to the cemetery.


In the halls of government buildings, another drama played out. The prime minister, Hamadi Jebali, called for the government to resign in favor of a technocratic leadership. But his own Ennahda party disavowed his call.


Ennahda, a moderate Islamist party, has been the strongest political group following the departure of Mr. Ben Ali, winning elections in October 2011 handily because it was viewed as very different from the strongman and his cronies.


But after the assassination of Mr. Belaid, the party has been forced into retreat, while the secular leftist opposition has been given new momentum and unity.


“The country entered a new political cycle: It was in a difficult political transition that was marked by phases of instability and now we are seeing a radicalization of political actors,” said Vincent Geisser, a researcher at the French Institute for the Near East who is based in Beirut, speaking of Islamists and secularists. “There is a serious need for dialogue before there is another assassination.”


The challenges are real: The country is dealing with a weak economy that contracted by 1.8 percent in 2011 and grew by an estimated 2.7 percent last year — not enough to reduce unemployment, which is running at about 17 percent, up from 13 percent at the end of the old regime.


Political instability is also frightening away tourists. Tourism was a key source of jobs and income in the past.


The turmoil is hurting just about everyone.


“Political parties are fighting and the Tunisian people are paying for it,” said Mohamed Ben Amor, sweeping in front of a bodega after a protest on Avenue Bourguiba. “The country is deeply affected by the problems that are happening, so business has been really bad.”


Tunisians lay the blame at Ennahda’s door for failing to address the roots of popular discontent and maintain order in the country, while creating an atmosphere in which religious radicals get away with making violent threats against the secular opposition.


Violence has been escalating in Tunisia over the past two years. Extremists have attacked tombs they consider sacrilegious and a TV station they believe has violated their conservative religious beliefs. In Sidi Bouzid, a city in central Tunisia, the extremist Salafis vandalized a bar in September.


Rachid Ghannouchi, a founder and leader of the Islamist party, who was recently called an “assassin” by demonstrators, strongly denies that the party has promoted violence.


“Ennahda never resorted to violence, it’s not part of our ideology,” he said during an interview in one of the party’s offices in Tunis.


“We are in power, but we feel like we are in the opposition. We don’t have any political party that stands by our party,” he added.


Even so, many blame Ennahda for the political turmoil and worry about a takeover by the military.


“Most Tunisians are held hostage by this kind of radicalization of the political spectrum,” Mr. Geisser said. “This stubbornness to not listen to each other could lead to a takeover by the security apparatus.”


Fares Mabrouk, a co-founder of the Arabic Policy Institute, a research concern in Tunis, believes that the shorter the transition period, the more chances the country has to get back to a more stable political climate. The current government is only supposed to remain until a constitution is in place and new elections are held.


“There is today an opportunity to create a historical compromise that will be unique to Tunisia, and unique in the Arab world,” he said. “The murder of Chokri Belaid and the unification of the left will balance the forces.”


The constitution is not finished and there is no date set yet for elections. This fight over political legitimacy is hurting the country.


“We have two equal forces and it can lead to civil war,” Mr. Mabrouk said. “The first one has electoral legitimacy and the other has now a martyr that is giving them legitimacy. With the political future so unclear, no Tunisian or foreign businesses will invest.”


But for many Tunisians, the murder of Mr. Belaid was a call to even greater political activism.


“I am in a state of shock, but actually there are thousands of Chokri Belaids,” said Mounji Ayari, 43, who wept as he held a sign with a picture of Mr. Belaid that read “martyr” at the funeral. “He is someone who taught us rebellion. He may be dead but he will forever stay with us and we will make sure his ideals live on.”


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Jada Pinkett Smith Reveals Her 'Craziest' Diet Ever















02/13/2013 at 07:00 PM EST







Jada Pinkett Smith


Ouzounova/Splash News Online


Jada Pinkett Smith knows a thing or two about diet and exercise.

The 41-year-old mom to Jaden, 14, and Willow, 12, who recently showed off an extremely toned beach body, says the craziest diet she's ever done actually involved a whole lot of eating.

"My craziest diet was for The Matrix," Smith told PEOPLE at the Vera Wang Fall 2013 Collection fashion show at Mercedes Benz New York Fashion Week on Tuesday. Seated front row next to model Chrissy Teigen, Pinkett Smith enjoyed some girl time away from husband Will Smith, who recently vacationed with pals – and parents-to-be – Kim Kardashian and Kanye West in Brazil.

To look the part of her butt-kicking character Niobe, the actress was "lifting 170 lbs. chest weight, and a lot of weight on my legs," she said.

While Matthew McConaughey's recent role required the actor to lose 30 lbs., Pinkett Smith says her role called for the opposite.

"I actually had to eat tons and tons and tons of food," Pinkett Smith said. "It was all about building muscle."

These days, the vegetarian eats a lot less, though she admits she still craves "McDonald's French fries."

But don't let her petite frame fool you.

"I love dressing like a tall woman," she said, wearing an on-trend peach dress and sky-high Christian Louboutin heels, "I like a lot of drama in my clothes."

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Clues to why most survived China melamine scandal


WASHINGTON (AP) — Scientists wondering why some children and not others survived one of China's worst food safety scandals have uncovered a suspect: germs that live in the gut.


In 2008, at least six babies died and 300,000 became sick after being fed infant formula that had been deliberately and illegally tainted with the industrial chemical melamine. There were some lingering puzzles: How did it cause kidney failure, and why wasn't everyone equally at risk?


A team of researchers from the U.S. and China re-examined those questions in a series of studies in rats. In findings released Wednesday, they reported that certain intestinal bacteria play a crucial role in how the body handles melamine.


The intestines of all mammals teem with different species of bacteria that perform different jobs. To see if one of those activities involves processing melamine, researchers from the University of North Carolina at Greensboro and Shanghai Jiao Tong University gave lab rats antibiotics to kill off some of the germs — and then fed them melamine.


The antibiotic-treated rats excreted twice as much of the melamine as rats that didn't get antibiotics, and they experienced fewer kidney stones and other damage.


A closer look identified why: A particular intestinal germ — named Klebsiella terrigena — was metabolizing melamine to create a more toxic byproduct, the team reported in the journal Science Translational Medicine.


Previous studies have estimated that fewer than 1 percent of healthy people harbor that bacteria species. A similar fraction of melamine-exposed children in China got sick, the researchers wrote. But proving that link would require studying stool samples preserved from affected children, they cautioned.


Still, the research is pretty strong, said microbiologist Jack Gilbert of the University of Chicago and Argonne National Laboratory, who wasn't involved in the new study.


More importantly, "this paper adds to a growing body of evidence which suggests that microbes in the body play a significant role in our response to toxicity and in our health in general," Gilbert said.


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Wall Street pauses after rally to five-year high

NEW YORK (Reuters) - Stocks drifted in light volume on Wednesday, ending little changed, as investors remained cautious after the S&P 500 index briefly hit its highest intraday level since November 2007.


The S&P 500 was buoyed by General Electric after cable company Comcast Corp said it will buy from GE the the part of NBCUniversal it didn't already own for $16.7 billion.


Comcast's stock hit the highest since 1999 before closing up 3 percent at $40.13 and GE gained 3.6 percent to $23.39.


The S&P 500 is up 6.6 percent so far this year, partly due to stronger-than-expected corporate earnings and a better economic outlook. The Dow industrials is about 1 percent away from an all-time intraday high, reached in October 2007.


Volume has been weak in recent days with the S&P moving sideways around 1,520. The index is about 3 percent away from closing at a record high.


A scarcity of sellers after a consistent string of gains is a positive sign and shows the uptrend is intact, King Lip, chief investment officer at Baker Avenue Asset Management in San Francisco, said.


"Last year we had double-digit returns in the first quarter. It's fairly possible we can move higher from here," he said.


The Dow Jones industrial average <.dji> fell 35.79 points or 0.26 percent, to 13,982.91, the S&P 500 <.spx> gained 0.9 point or 0.06 percent, to 1,520.33 and the Nasdaq Composite <.ixic> added 10.38 points or 0.33 percent, to 3,196.88.


The S&P gained 12 percent in the first three months of 2012.


Deere & Co , the world's largest farm equipment maker, forecast a modest increase in sales this year despite the prospect of the biggest corn crop in U.S. history. The forecast fell short of analysts' expectations, sending shares of Deere down 3.5 percent to $90.68.


In extended trading, shares of technology bellwether Cisco Systems fell 2 percent after it posted results.


Dr Pepper Snapple fell 5.8 percent to $42.69 after it forecast profit for the current year below analysts' estimates.


Cliffs Natural Resources lost a fifth of its market value a day after the miner reported a quarterly loss and slashed its dividend by 76 percent. Its shares fell 20 percent to 429.29.


According to the latest Thomson Reuters data, of the 364 companies in the S&P 500 that have reported results, 70.3 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters.


About 5.9 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average in February last year of 6.94 billion.


On the NYSE, roughly seven issues rose for every five that fell and on Nasdaq more than six rose for every five decliners.


(Editing by Kenneth Barry and Bernadette Baum)



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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. (Turn off auto-refresh to watch videos.)

4:17 P.M. |Subtitled Video of Pope’s Resignation Statement

The Telegraph has added English subtitles to video of the pope’s resignation statement, made in Latin to cardinals at the Vatican on Monday.

Video of Pope Benedict XVI announcing his intention to resign.

Later in the day, the photojournalist Alessandro Di Meo captured a striking image of St. Peter’s Basilica during a thunderstorm that drenched the Vatican.

Robert Mackey

3:24 P.M. |The Vatican’s Electoral College

As the Vatican newspaper L’Osservatore Romano reports, the Catholic News Service has published a complete list of the cardinals, “from oldest to youngest, eligible to vote for a pope in a conclave.” The oldest, Cardinal Walter Kasper, will be 80 years old on March 5, so “depending on the date of the conclave, he might be over 80, and thus too old to vote.”

The youngest elector, 53-year-old Cardinal Baselios Cleemis Thottunkal of the Syro-Malankara Catholic Church from India, was appointed less than three months ago by Pope Benedict XVI.

A video report on Cardinal Baselios Cleemis Thottunkal, major archbishop of the Syro-Malankara Catholic Church.

Robert Mackey

2:11 P.M. |Pope Decided to Step Down ‘Months Ago’

As our colleague Rachel Donadio reports, the editor of the Vatican newspaper L’Osservatore Romano said that the pope made his decision to step down nearly a year ago after a trip to Mexico and Cuba. The pope made up his mind “after his trip to Mexico and Cuba, and having repeatedly examined his conscience before God, due to his advancing age,” the editor, Giovanni Maria Vian, said.

The German newspaper Die Welt reports that the pope’s brother, Father Georg Ratzinger, who is also a Catholic priest, said that he had known of the impending announcement for many months.

A German television interview with the pope’s older brother, Father Georg Ratzinger, on Monday.

As the Catholic News Service reports, the pope had previously hinted that resignation was a possibility for him:

The German author and journalist Peter Seewald asked Pope Benedict in the summer of 2010 whether he was considering resigning then, a time when new reports of clerical sexual abuse were being published in several European countries.

“When the danger is great, one must not run away. For that reason, now is certainly not the time to resign,” he told Seewald, who published the remarks in the book, “Light of the World: The Pope, the Church and the Signs of the Times.”

The pope did tell him, though, “one can resign at a peaceful moment or when one simply cannot go on. But one must not run away from danger and say that someone else should do it.”

In another section of the book, the pope told Seewald: “If a pope clearly realizes that he is no longer physically, psychologically and spiritually capable of handling the duties of his office, then he has a right and, under some circumstances, also an obligation to resign.”

Robert Mackey

1:43 P.M. |Obama and Other World Leaders Praise the Pope

The White House released the following statement on Monday in response to the pope’s resignation:

On behalf of Americans everywhere, Michelle and I wish to extend our appreciation and prayers to His Holiness Pope Benedict XVI. Michelle and I warmly remember our meeting with the Holy Father in 2009, and I have appreciated our work together over these last four years. The Church plays a critical role in the United States and the world, and I wish the best to those who will soon gather to choose His Holiness Pope Benedict XVI’s successor.

President Obama joined many world leaders in paying tribute to the pope on Monday. Angela Merkel, the German chancellor, called the pope, “deeply educated, with a sense for history’s great correlations and a lively interest in the processes of European unification.” She added: “”In an era in which people are living ever longer, many people can understand how the pope is having to deal with the burdens of aging.”

A less somber note was struck by Vice President Joseph R. Biden Jr., a catholic, who joked at a news conference that he would not be running for the papacy.

Ireland’s prime minister, Enda Kenny, who was caught on video checking his phone during a papal address last year, said: “On behalf of the Government and people of Ireland, I would like to extend best wishes to His Holiness Pope Benedict XVI following his declaration today that he intends to step down from his office. This is clearly a decision which the Holy Father has taken following careful consideration and deep prayer and reflection. It reflects his profound sense of duty to the Church, and also his deep appreciation of the unique pressures of spiritual leadership in the modern world.”

Two years ago, Mr. Kenny also attacked the Vatican after a report found that officials there had discouraged efforts by bishops to report cases of sex abuse to the police.” In a speech to the Irish Parliament after the release of the Cloyne Report in 2011, which detailed abuse and cover-ups by church officials, Mr. Kenny said:

for the first time in Ireland, a report into child sexual abuse exposes an attempt by the Holy See to frustrate an inquiry in a sovereign, democratic republic … as little as three years ago, not three decades ago. And in doing so, the Cloyne Report excavates the dysfunction, disconnection, elitism — the narcissism — that dominate the culture of the Vatican to this day.

Robert Mackey

12:55 P.M. |The Pope’s Decision as ‘the Eruption of Modernity’

Reflecting on Monday’s news, Ezio Mauro, the executive editor of La Repubblica, suggested in a video interview published on the Italian newspaper’s Web site, that the pope’s decision to resign marked “the eruption of modernity” into the papacy.

Mr. Mauro also discussed the possible difficulties the resignation, unprecedented in modern times, could have for the next pope, who will have to deal with not just the memory of his predecessor, but the also the fact of the living man. He added that, although a Vatican spokesman insisted that the pope “was absolutely not depressed,” the scenario unfolding in real life reminded him somewhat of the plot of the Italian director Nanni Moretti’s 2012 comedy “Habemus Papam,” about a reluctant new pope who tries psychoanalysis before ducking out of the Vatican to wander the streets of Rome.

The trailer for the 2012 Italian comedy “Habemus Papam,” about a reluctant pope.

Robert Mackey

11:59 A.M. |Cardinal Dolan Says He Admires Pope for Decision
Associated Press video of Cardinal Timothy Dolan, archbishop of New York, speaking to reporters on Monday about the pope’s resignation.

Speaking after the pope announced his resignation plans on Monday, Cardinal Timothy Dolan, archbishop of New York, told reporters, “I just always admired him as a scholar, as a priest, as a holy man — and now my admiration for him is even higher because of his humility.” The American cardinal also said in a statement:

The Holy Father brought the tender heart of a pastor, the incisive mind of a scholar and the confidence of a soul united with His God in all he did. His resignation is but another sign of his great care for the Church. We are sad that he will be resigning but grateful for his eight years of selfless leadership as successor of St. Peter.

Though 78 when he elected pope in 2005, he set out to meet his people – and they were of all faiths – all over the world. He visited the religiously threatened – Jews, Muslims and Christians in the war-torn Middle East, the desperately poor in Africa, and the world’s youth gathered to meet him in Australia, Germany and Spain.

He delighted our beloved United States of America when he visited Washington and New York in 2008. As a favored statesman he greeted notables at the White House. As a spiritual leader he led the Catholic community in prayer at Nationals Park, Yankee Stadium and St. Patrick’s Cathedral. As a pastor feeling pain in a stirring, private meeting at the Vatican nunciature in Washington, he brought a listening heart to victims of sexual abuse by clerics.

Robert Mackey

11:45 A.M. |Speculation Online About Who Comes Next
A video report from the news agency Rome Reports on what happens after the pope’s resignation.

Within hours of the announcement that the pope had resigned, Twitter was filled with speculation as to who would come next, with some hoping it would be an opportunity for a younger, more reform-minded pope, or one drawn from the new Catholic strongholds in the developing world, where more than half the world’s Catholics now reside.

As our colleagues Elisabetta Povoledo and Alan Cowell report:

Vatican lore has it that cardinals seen as front-runners in advance of the vote rarely triumph, and Vatican-watchers say there is no clear favorite among several potential contenders: Cardinal Angelo Scola, the archbishop of Milan; Cardinal Christoph Schoenborn, the archbishop of Vienna; and Cardinal Marc Ouellet, the Canadian head of the Vatican’s office for bishops.

As the Vatican explains on its Web site, popes are elected by a conclave of cardinals.

The BBC describes the process:

During this period all the cardinals – retirees included – will begin to discuss in strict secrecy the merits of likely candidates. The cardinals do not have to choose one of their own number – theoretically any baptised male Catholic can be elected pope – but tradition says that they will almost certainly give the job to a cardinal….

The only clue about what is going on inside the Sistine Chapel is the smoke that emerges twice a day from burning the ballot papers. Black signals failure. The traditional white smoke means a new pope has been chosen…

After the election of the new pope has been signaled by white smoke rising from the Sistine Chapel chimney, there will be a short delay before his identity is finally revealed to the world.

Among those who called for the church to embrace change and diversity with its selection was the New York Times Op-Ed columnist Nicholas Kristof, who drew a distinction in Catholic service between the papal activities in the Vatican and those who work in some of the poorest places on earth.

As Mr. Kristof observed from southern Sudan in 2010:

As I’ve noted before, there seem to be two Catholic Churches, the old boys’ club of the Vatican and the grass-roots network of humble priests, nuns and laity in places like Sudan. The Vatican certainly supports many charitable efforts, and some bishops and cardinals are exemplary, but overwhelmingly it’s at the grass roots that I find the great soul of the Catholic Church.

Christine Hauser

11:26 A.M. |Reaction From Germany, Ireland and the U.S.

Television news crews around the world have been sampling street reaction on the pope’s decision to step down.

In Germany, the pope’s native country, there was surprise at the announcement which caught even the German government off-guard, Deutsche Well reports.

The German broadcaster Deutsche Welle sampled reaction in Germany to Pope Benedict XVI’s resignation.

In Ireland, a traditionally Catholic country where the church has been rocked by sexual abuse scandals, The Irish Times found less surprise, and some words of welcome for the idea of a younger pope.

One Catholic in Washington told The Associated Press that his first reaction was to pray and ask for support even from members of other faiths.

Associated Press video on the reaction of American Catholics to the pope’s resignation.

Robert Mackey

10:20 A.M. |Betting Begins on Next Pope

While many people remain in shock over the pope’s surprise resignation on Monday, bets are already being placed on who will succeed him in one of the world’s most Catholic countries, Ireland.

As the Guardian correspondent John Hooper notes, the Irish bookmaker Paddy Power quickly issued odds on the cardinals considered most likely to succeed Benedict — with Cardinal Marc Ouellet, the Canadian head of the Vatican’s office for bishops, Cardinal Francis Arinze, a Nigerian who was converted from animism by Irish missionaries, Cardinal Peter Appiah Turkson of Ghana and Cardinal Angelo Scola, archbishop of Milan, among the early favorites.

The longest odds offered by the bookie are 1,000 to 1 on the Irish singer Bono, who is not Catholic, and the Irish television star Father Dougal Maguire, who is not real.

In 2005, Cardinal Ouellet, who was then the archbishop of Quebec and primate of Canada’s Catholic Church, warned that legalizing gay marriage “threatens to unleash nothing less than cultural upheaval whose negative consequences are still impossible to predict.”

During the 2004 presidential campaign in the United States, Cardinal Arinze was asked about Senator John Kerry’s support for abortion rights, and replied that a Roman Catholic politician who supports abortion “is not fit” to receive communion.

As my colleague Ian Fisher reported in 2005, Cardinal Scola — who was considered a top Italian candidate to become pope during the previous election — started an Arabic-language magazine, Oasis, that was devoted to improving contacts and dialogue between Christians and Muslims.

Last year, Reuters reported, Cardinal Turkson “caused an uproar at the Vatican by screening a spurious YouTube video that makes alarmist predictions about the growth of Islam in Europe,” to an an international gathering of bishops. The viral YouTube video, “Muslim Demographics,” relies on quotes from Col. Muammar el-Qaddafi and wildly inaccurate population projections from anti-Islam authors to make alarmist claims about the future growth of the Muslim population of Europe and the United States.

Robert Mackey

9:42 A.M. |Not the First Pope Benedict to Resign

Although, as close observers of social media quickly noted, the pope’s new Pontifex Twitter feed has been mute on his resignation so far, the Vatican press office has been busy online, issuing a string of updates on the Vatican news feed with links to a timeline of Benedict XVI’s papacy, a report on Facebook reaction to the announcement — “Hacked?” — interviews with a papal historian and an expert on canon law on the Vatican Radio’s site.

In one of those interviews, Donald Prudlo, an associate professor of history who studies “hagiography and saint’s lives, medieval miracle stories, Church History, and the development of canonization” at Jacksonville State University in Alabama, explained that the last pope to resign was Pope Gregory XII, who stepped down almost 600 years ago, “so that the council of Constance could assume his power and appoint a new pope, and in so doing bring an end Great Western Schism.”

Mr. Prudlo added that the pope’s resignation does not have to be accepted by anyone:

At the end of the 13th century, a very holy hermit named Peter was elected as Pope Celestine V in order to break a deadlock in the conclave that had lasted nearly three years. He was elected because of his personal holiness, sort of a unity candidate. And once he got there, being a hermit, not used to the ways of the Roman Curia, he found himself somewhat unsuited to the task, that it wasn’t just holiness but also some shrewdness and prudence that was also required. So within six months he knew that he was really unequal to the task, and so he gathered the cardinals together in a consistory, just as was recently done, a couple hours ago, and he announced to the cardinals his intention to resign. Because of the Pope’s position as the supreme authority in the Church, Celestine declared that the pope could freely resign, that it was permissible, and that, because, as supreme authority, it did not have to be accepted by anyone.

The professor also noted that one of the few previous popes to step down, also named Benedict, apparently had second thoughts about his decision:

Celestine V and his advisers were aware that this was an unusual process. And so what they did is they went back through history, they looked at the Liber Pontificalis, and they could go all the way back to Pope St. Pontian, in 235, one of the first bishops of Rome, who was arrested and sent to the salt mines, and in order for a successor to be able to be elected in Rome, he resigned his office. And so as early as 235 we have evidence of the possibility of Popes resigning for the good of the church. Several others, they tried to force them to resign. The Byzantines attempted to force Pope Silverius to resign, but he refused to. But that also demonstrates the possibility of resignation. And then, at a rather low point in the Church’s history, Pope Benedict IX, in the 1040s, resigned and attempted to re-acquire the papacy several times. But according to good reports, he too died in penance at the monastery of Grottaferrata outside of Rome.

Robert Mackey

9:02 A.M. |Video of Vatican News Conference
Video of a Vatican news conference on the pope’s resignation, posted online by The Telegraph.

As our Rome bureau chief Rachel Donadio reports, Rev. Federico Lombardi, the Vatican spokesman, told reporters at a news conference on Monday, “The pope took us by surprise.” Among other questions, reporters asked Father Lombardi what the pope will be called after is resignation and what he will wear.

The spokesman said he had no answers to those questions.

Father Lombardi also explained that the pope would continue to carry out his duties until Feb. 28 and a successor could be elected by Easter, at the end of March.

Video from the news conference was posted online by The Telegraph.

Robert Mackey

8:51 A.M. |Text and Video of Pope’s Resignation Announcement
Video of Pope Benedict XVI announcing his resignation in a Latin statement on Monday at the Vatican.

As my colleague Rachel Donadio reports from Rome, Pope Benedict XVI announced on Monday that he would resign in a statement in Latin that he read to a meeting of cardinals who had gathered at the Vatican on other church business.

Video of the pope reading the announcement in Latin was posted on YouTube by Rome Reports, a news agency that covers the Vatican. This English translation of the complete statement was posted on the official Vatican Radio Web site:

Dear Brothers,
I have convoked you to this Consistory, not only for the three canonizations, but also to communicate to you a decision of great importance for the life of the Church. After having repeatedly examined my conscience before God, I have come to the certainty that my strengths, due to an advanced age, are no longer suited to an adequate exercise of the Petrine ministry. I am well aware that this ministry, due to its essential spiritual nature, must be carried out not only with words and deeds, but no less with prayer and suffering. However, in today’s world, subject to so many rapid changes and shaken by questions of deep relevance for the life of faith, in order to govern the bark of Saint Peter and proclaim the Gospel, both strength of mind and body are necessary, strength which in the last few months, has deteriorated in me to the extent that I have had to recognize my incapacity to adequately fulfill the ministry entrusted to me. For this reason, and well aware of the seriousness of this act, with full freedom I declare that I renounce the ministry of Bishop of Rome, Successor of Saint Peter, entrusted to me by the Cardinals on 19 April 2005, in such a way, that as from 28 February 2013, at 20:00 hours, the See of Rome, the See of Saint Peter, will be vacant and a Conclave to elect the new Supreme Pontiff will have to be convoked by those whose competence it is.
Dear Brothers, I thank you most sincerely for all the love and work with which you have supported me in my ministry and I ask pardon for all my defects. And now, let us entrust the Holy Church to the care of Our Supreme Pastor, Our Lord Jesus Christ, and implore his holy Mother Mary, so that she may assist the Cardinal Fathers with her maternal solicitude, in electing a new Supreme Pontiff. With regard to myself, I wish to also devotedly serve the Holy Church of God in the future through a life dedicated to prayer.

Robert Mackey

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