When President Obama and the new Congress begin to tackle important legislation and federal policy in January, one of the key issues will be how to reform America's byzantine tax code.
Obama campaigned on a platform to raise taxes on the wealthiest Americans, declaring that millionaires and billionaires need to "pay their fair share." The president proposed the highly controversial "Buffett Rule," which would make sure those individuals earning more than $1 million a year would pay at least 30% of their income in federal taxes.
Related: Do the Rich Have a Moral Obligation to Pay Higher Taxes? Gov. Jerry Brown Says 'Yes'
The top individual tax rate is currently 35% but few U.S. households and individuals actually pay that much; various tax deductions and loopholes reduce one's tax burden.
According to the Obama campaign, the richest 400 taxpayers in 2008 (who each made more than $110 million that year) paid an average income tax rate of just 18%. In 2009 over 20,000 U.S. households with more than $1 million in income paid a federal tax rate of less than 15%.
Obama has vowed to raise the top income tax rate for individuals to 39.6% and let the Bush-era tax breaks end for the highest income earners. The majority of Americans — those who are lower to middle class — could also see a 2% tax increase if Congress allows the temporary payroll tax holiday to expire at the end of the year.
Related: Here's Why Your Taxes Are Going Up 2% Next Year: Just Explain It
Nearly half of voters support raising taxes on incomes over $250,000, according to Tuesday night's exit polls.
Len Burman, a professor of public affairs at Syracuse University and a co-founder of the bipartisan Tax Policy Center, believes higher tax rates play just a small role in resolving the nation's budget woes.
"In the long term [Obama] is going to need to raise taxes on more than just the rich," Burman says in an interview with The Daily Ticker. "The budget problem isn't going to be solved without broader-based tax increases, preferably done in the context of tax reform and also serious entitlement reform. We're not going to be able to solve this on the tax side alone."
Burman, who recently co-wrote the new book "Taxes in America: What Everyone Needs to Know," says tax rates do not need to be raised for any income group if Congress and the White House would agree on one simple change: raising the capital gains rate, i.e. the profits from the sale of an investment. Assets, such as stocks, art or real estate, that are held for at least a year are currently taxed at a special 15% rate; Obama wants to raise that to 20%.
"The problem with a low tax rate on capital gains is not that it allows Mitt Romney and Warren Buffett to pay very low taxes but that it creates this huge opportunity for tax sheltering," he notes. "There's a whole industry that's devoted to coming up with these schemes. [Raising capital gains rates] could make the tax system more progressive and allow for lower tax rates" and a reduction in the deficit Burman says.
Obama's tax proposal also targets the Alternative Minimum Tax, the Estate Tax and as well as many personal tax credits and itemized deductions. Obama would make permanent the 2007 AMT patch and index it for inflation. He would raise the estate tax to 45% from 35% on estates worth more than $3.5 million. He would lower the corporate tax rate to 28% from 35% and provide a refundable $3,000 credit per added employee for companies that expand their workforce. He would tax carried interest as ordinary income.
Related: Corporate Tax Loopholes=Corporate Socialism: Pulitzer Prize Winner David Cay Johnston
A divided Congress refused to compromise with Obama during his first term and could very well dismiss the president's tax reforms for the next four years. Republicans are loathe to raise taxes by even a penny and Obama has said he would veto any budget bills that did not include tax increases. Neither party wants to raise taxes in a weak economy. But the options available for reducing the deficit and generating new revenue are few and far between.
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Has Obama Been Good for Millionaires?
Labels: BusinessThe question of whether Americans are better off than they were four years ago depends, of course, on the American.
For the 12 million unemployed, the answer is most certainly no.
But for many of America's millionaires, the answer may be more affirmative.
A new study from WealthInsight, the London-based wealth-research and data firm (and yes, they are non-partisan), showed that the United States added 1.1 million millionaires between Jan. 1, 2009 and the end of 2011, the latest period measured. There were 5.1 million millionaires in America at the end of 2011, compared with around 4 million at the end of 2008.
That works out to more than 1,000 millionaires a day under the Obama administration. (They defined millionaires as people with total net worth of $1 million or more, excluding primary residence).
(Read more: Rich Will Spend More Under Romney: Poll)
"It's true that Obama has been good for millionaires, at least in absolute terms," said Andrew Amoils, analyst at WealthInsight. "He certainly hasn't been bad for millionaires."
Amoils said that quantitative easing and financial bailouts especially helped the finance sector, which accounts for the largest share of millionaires. It also helped that markets recovered in 2009.
The timeframe is worth noting. Measured against the 2007 peak, when 5.27 million Americans had a net worth of at least $1 million, the nation lost 165,360 millionaires. Their combined wealth is down six percent, to $18.8 trillion from a peak of more than $20 trillion in 2007.
We don't know how 2012 will turn out, though if stock markets continue to strengthen, the millionaire count for 2012 is likely to increase. Wealth Insight says the number of millionaires in America will grow to more than six million by 2016, and their combined fortunes will jump 25 percent over the same period.
(Read more: Millionaires Give Nine Percent of Income to Charity)
Where did all the millionaires come from between 2008 and 2011?
Mainly from retail, tech and finance -- and in both blue and red states.
Of the sectors adding the largest number of people worth $30 million or more, the retail, fashion, and luxury goods sector ranked first. That was followed by energy and utilities, then tech, telecoms and finance. Transportation and construction saw the biggest drops.
The number of people worth $30 million or more grew 26 percent in Connecticut since 2008, 20 percent in Kansas, 12 percent in Michigan, showing that the wealth creation was nationwide.
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Disney buying Lucasfilm for $4.05 billion
Labels: BusinessLOS ANGELES (AP) — Disney is paying $4.05 billion to buy Lucasfilm Ltd., the production company behind "Star Wars," from its chairman and founder, George Lucas. It's also making a seventh movie in the "Star Wars" series called "Episode 7," set for release in 2015, with plans to follow it with Episodes 8 and 9 and then one new movie every two or three years.
The Walt Disney Co. announced the blockbuster agreement to make the purchase in cash and stock Tuesday. The deal includes Lucasfilm's prized high-tech production companies, Industrial Light & Magic and Skywalker Sound, as well as rights to the "Indiana Jones" franchise.
Disney CEO Bob Iger said in a statement that the acquisition is a great fit and will help preserve and grow the "Star Wars" franchise.
"The last 'Star Wars' movie release was 2005's 'Revenge of the Sith' — and we believe there's substantial pent-up demand," Iger said.
Kathleen Kennedy, the current co-chairman of Lucasfilm, will become the division's president and report to Walt Disney Studios Chairman Alan Horn. Lucas will be creative consultant on new "Star Wars" films.
Lucas said in a statement, "It's now time for me to pass 'Star Wars' on to a new generation of filmmakers."
The deal brings Lucasfilm under the Disney banner with other brands including Pixar, Marvel, ESPN and ABC, all companies that Disney has acquired over the years. A former weatherman who rose through the ranks of ABC, Iger has orchestrated some of the company's biggest acquisitions, including the $7.4 billion purchase of animated movie studio Pixar in 2006 and the $4.2 billion acquisition of comic book giant Marvel in 2009.
Disney shares were not trading with stock markets closed due to the impact of Superstorm Sandy in New York.
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US economic growth improves to 2 pct. rate in Q3
Labels: BusinessWASHINGTON (AP) -- The U.S. economy expanded at a slightly faster 2 percent annual rate from July through September, buoyed by an uptick in consumer spending and a burst of government spending.
Growth improved from the 1.3 percent rate in the April-June quarter, the Commerce Department said Friday.
The pickup in growth may help President Barack Obama's message that the economy is improving. Still, growth remains too weak to rapidly boost hiring. And the 1.74 percent rate for 2012 so far trails last year's 1.8 percent growth, a point GOP nominee Mitt Romney will emphasize.
The report is the last snapshot of economic growth before Americans choose a president in 11 days.
The economy improved because consumer spending rose 2 percent in the July-September quarter, up from 1.5 percent in the second quarter. Spending on homebuilding and renovations increased more than 14 percent. And federal government spending expanded sharply on the largest increase in defense spending in more than three years.
Growth was held back by the first drop in exports in more than three years and flat business investment in equipment and software.
The economy was also slowed by the severe drought this summer in the Midwest. That sharply cut agriculture stockpiles and reduced growth by nearly a half-point.
The government's report covers gross domestic product. GDP measures the nation's total output of goods and services — from restaurant meals and haircuts to airplanes, appliances and highways.
The first of three estimates of growth for the July-September quarter sketched a picture that's been familiar all year: The economy is growing at a tepid rate, slowed by high unemployment and corporate anxiety over an unresolved budget crisis and a slowing global economy.
While growth remains modest, the factors supporting the economy have changed. Exports and business investment drove growth for most of the recovery, but are now fading. Meanwhile, consumer spending has ticked up and housing is adding to growth after a six-year slump.
Consumer spending drives nearly 70 percent of economic activity.
Businesses have grown more cautious since spring, in part because customer demand has remained modest and exports have declined as the global economy has slowed.
Many companies worry that their overseas sales could dampen further if recession spreads throughout Europe and growth slows further in China, India and other developing countries. Businesses also fear the tax increases and government spending cuts that will kick in next year if Congress doesn't reach a budget deal.
Since the recovery from the Great Recession began in June 2009, the U.S. economy has grown at the slowest rate of any recovery in the post-World War II period. And economists think growth will remain sluggish at least through the first half of 2013. Some analysts believe the economy will start to pick up in the second half of next year.
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Apple’s New iPad Mini Is Pricey but That Won’t Deter Fans: TechCrunch’s John Biggs
Labels: BusinessIt's officially here: The iPad mini, the subject of endless speculation and rumors over the past year, made its debut Tuesday at the California Theater in San Jose, Calif. The iPad mini starts at $329 and hits store shelves Nov. 2. Pre-sales begin Oct. 26. It boasts a 7.9-inch display, weighs 0.68 pounds and is 7.2mm thick. The design closely resembles the iPod Touch and comes in both black and white.
Related: Get Ready for a Big Week in Tech: Apple & Facebook Earnings, Mini iPad, Windows 8 & More
As is the case with all Apple products, there is an option to pay up for more hardware. Here are the price points:
$329 for 16GB
$429 for 32GB
$529 for 64GB
In mid-November Apple will roll out the Wi-fi and 4G mini for $459 for 16GB, $559 for 32GB, and $659 for 64GB.
The iPad mini screen measures 1,024x768, the same resolution as the iPad 2. It also includes a dual-core A5 processor, a front-facing FaceTime HD camera, Apple's "Lightning" connector and a 5-megapixel back camera. A fully charged iPad mini will get 10 hours of battery life.
Apple (AAPL) stock was trading nearly two percent lower after the iPad mini presentation.
Related: Why Apple's Stock is Dropping
John Biggs, East Coast editor of TechCrunch, says the Apple event lacked the shock and awe of previous product announcements.
"Everybody was expecting an iPad mini and we got an iPad mini," he says in an interview with The Daily Ticker. "To see an iPad mini pop up is no huge surprise."
Biggs says the new mini may be pricey but it would not deter Apple devotees and tech "dorks" from adding to their Apple collections. The smaller screen will attract consumers who use tablet devices for reading -- "it's Apple's e-reader" -- Biggs says, and the new mini is not likely to cut into sales of the larger iPad versions, which still feature bigger screens and a higher resolution display.
The starting price for the iPad mini is $130 more than the Kindle Fire HD and Nexus 7 — Apple's two main competitors in the e-reader space. Most Apple insiders and analysts were expecting a lower entry point for the mini, says CNET's Brian Tong, and consumer sticker shock could drag down sales expectations. The mini's price would have been even higher if Apple made it with a retina display, he adds.
"It will sell well but won't break records," Tong says. "It will sell because it's Apple. Never underestimate the Apple consumer."
Microsoft will unveil its first tablet device, Surface, next week.
Related: Microsoft Launches Its Own Tablet--and Admits Apple Was Right
Biggs says the Surface's size and user-face are more conducive to typing, an important feature for some consumers. The tablet market may be expanding but there's still only one winner, according to Biggs — Apple. "You're getting the premium product," he says.
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Reuters U.S. Sports Schedule at 2 p.m. EDT on Thursday, Dec. 20
Labels: SportsDec. 20 (Reuters) - Reuters U.S. sports schedule at 2 p.m. EST on Thursday:
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The duty editor is Steve Ginsburg, 202-898-8427
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National Football League
Envelopes, please
Adrian Peterson or Peyton Manning? The worthiest NFL Comeback Player of the Year candidates could also be debated as the league's MVP. (FBN-COLUMN/, expect by 0100 GMT/8 PM ET, The Sports Xchange, by Frank Cooney, 500 words)
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No No. 1
Holiday problems? Well, in New York a third-string seventh-round draft pick is starting the penultimate game of the season. Yes, the New York Jets could be ready to start anew in light of Mark Sanchez's persistent struggles and the unwillingness to go the Tim Tebow route. (FBN-JETS-NEWS/, moved, The Sports Xchange, 600 words)
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Bengals pin playoff hopes on Dalton, defense
If it doesn't happen now, when? That is the simple question that the Cincinnati Bengals must address as they face the Pittsburgh Steelers on Sunday. (FBN-BENGALS-STEELERS-NEWS/, moved, The Sports Xchange, 600 words)
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Saints lament what might have been
Even though they're still in the NFC playoff picture mathematically, the New Orleans Saints aren't talking like it going into the final two games of the season. (FBN-SAINTS-NEWS/, expect by 5 p.m. ET, The Sports Xchange, 425 words)
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Niners eye division crown
Before the 49ers' upset win at New England, Sunday's meeting at CenturyLink Field in Seattle had the makings of a NFC West championship feel. San Francisco can still lock up the division crown with a win, but even with a loss can clinch the division the following week with a win at home against Arizona. (FBN-NINERS-NEWS/, moved, The Sports Xchange, 550 words)
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NFL Notebook
The latest news and notes from around the league. (FBN-NOTES/, expect by 0000 GMT/7 PM ET, The Sports Xchange, 500 words)
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College Football
Poinsettia Bowl
SAN DIEGO - San Diego St. and BYU are familiar foes with head coaches who've known each other for decades. The Cougars lead the all-time series 27-7-1, but the Aztecs are after their eighth straight win to end the season with 10 victories for the first time since 1977. (FBC-BYU-SANDIEGOSTATE-WRITETHRU/, expect by 11 p.m. ET, The Sports Xchange, by Forrest Lee, 700 words)
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CFB notebook
The latest from around the nation. (FBC-NOTES/, expect by 0000 GMT/7 PM ET, The Sports Xchange, 400 words)
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National Basketball Association
Thunder try for No. 13
MINNEAPOLIS - If the blizzard outside Target Center can't stop the Oklahoma City Thunder, they'll aim for a 13th win in a row tonight. The Minnesota Timberwolves should have point guard Ricky Rubio in action. (BBO-THUNDER-TIMBERWOLVES-NEWS/ (PIX), expect by 0230 GMT/9:30 PM ET, The Sports Xchange, 700 words)
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Mavericks, Heat duel without Dirk
DALLAS - Dirk Nowitzki says he's getting close to returning to action, but the Dallas Mavericks' star won't be available tonight against Miami. LeBron James and the Heat aim for a third win in a row over the Mavs. (BBO-MAVERICKS-HEAT-WRITETHRU/ (PIX), expect by 0430 GMT/11:30 PM ET, The Sports Xchange, 700 words)
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Heat have plenty of room to improve say LeBron, Bosh
MIAMI - LeBron James and Chris Bosh say the Miami Heat have plenty of work to do if they are to reach peak form in time for the playoffs but both like it just that way. (NBA-HEAT/, expect by 1930 GMT/2:30 PM ET, by Simon Evans, 600 words)
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NBA notebook
The latest news and notes from around the league. (BKN-NOTES/, expect by 1245 GMT/7:45 PM ET, The Sports Xchange, 400 words)
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Marathon
Storm-canceled NYC marathon offers refunds to runners
NEW YORK - The New York City Marathon is offering refunds to those who paid to run in the 2012 race, which was canceled due to the aftermath of Superstorm Sandy. (NEWYORK-MARATHON/, moved, 200 words)
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The duty editor is Steve Ginsburg, 202-898-8427
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National Football League
Envelopes, please
Adrian Peterson or Peyton Manning? The worthiest NFL Comeback Player of the Year candidates could also be debated as the league's MVP. (FBN-COLUMN/, expect by 0100 GMT/8 PM ET, The Sports Xchange, by Frank Cooney, 500 words)
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No No. 1
Holiday problems? Well, in New York a third-string seventh-round draft pick is starting the penultimate game of the season. Yes, the New York Jets could be ready to start anew in light of Mark Sanchez's persistent struggles and the unwillingness to go the Tim Tebow route. (FBN-JETS-NEWS/, moved, The Sports Xchange, 600 words)
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Bengals pin playoff hopes on Dalton, defense
If it doesn't happen now, when? That is the simple question that the Cincinnati Bengals must address as they face the Pittsburgh Steelers on Sunday. (FBN-BENGALS-STEELERS-NEWS/, moved, The Sports Xchange, 600 words)
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Saints lament what might have been
Even though they're still in the NFC playoff picture mathematically, the New Orleans Saints aren't talking like it going into the final two games of the season. (FBN-SAINTS-NEWS/, expect by 5 p.m. ET, The Sports Xchange, 425 words)
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Niners eye division crown
Before the 49ers' upset win at New England, Sunday's meeting at CenturyLink Field in Seattle had the makings of a NFC West championship feel. San Francisco can still lock up the division crown with a win, but even with a loss can clinch the division the following week with a win at home against Arizona. (FBN-NINERS-NEWS/, moved, The Sports Xchange, 550 words)
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NFL Notebook
The latest news and notes from around the league. (FBN-NOTES/, expect by 0000 GMT/7 PM ET, The Sports Xchange, 500 words)
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College Football
Poinsettia Bowl
SAN DIEGO - San Diego St. and BYU are familiar foes with head coaches who've known each other for decades. The Cougars lead the all-time series 27-7-1, but the Aztecs are after their eighth straight win to end the season with 10 victories for the first time since 1977. (FBC-BYU-SANDIEGOSTATE-WRITETHRU/, expect by 11 p.m. ET, The Sports Xchange, by Forrest Lee, 700 words)
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CFB notebook
The latest from around the nation. (FBC-NOTES/, expect by 0000 GMT/7 PM ET, The Sports Xchange, 400 words)
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National Basketball Association
Thunder try for No. 13
MINNEAPOLIS - If the blizzard outside Target Center can't stop the Oklahoma City Thunder, they'll aim for a 13th win in a row tonight. The Minnesota Timberwolves should have point guard Ricky Rubio in action. (BBO-THUNDER-TIMBERWOLVES-NEWS/ (PIX), expect by 0230 GMT/9:30 PM ET, The Sports Xchange, 700 words)
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Mavericks, Heat duel without Dirk
DALLAS - Dirk Nowitzki says he's getting close to returning to action, but the Dallas Mavericks' star won't be available tonight against Miami. LeBron James and the Heat aim for a third win in a row over the Mavs. (BBO-MAVERICKS-HEAT-WRITETHRU/ (PIX), expect by 0430 GMT/11:30 PM ET, The Sports Xchange, 700 words)
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Heat have plenty of room to improve say LeBron, Bosh
MIAMI - LeBron James and Chris Bosh say the Miami Heat have plenty of work to do if they are to reach peak form in time for the playoffs but both like it just that way. (NBA-HEAT/, expect by 1930 GMT/2:30 PM ET, by Simon Evans, 600 words)
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NBA notebook
The latest news and notes from around the league. (BKN-NOTES/, expect by 1245 GMT/7:45 PM ET, The Sports Xchange, 400 words)
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Marathon
Storm-canceled NYC marathon offers refunds to runners
NEW YORK - The New York City Marathon is offering refunds to those who paid to run in the 2012 race, which was canceled due to the aftermath of Superstorm Sandy. (NEWYORK-MARATHON/, moved, 200 words)
AP Source: Jets will consider options with Sanchez
Labels: SportsFLORHAM PARK, N.J. (AP) — Mark Sanchez is the former face of the franchise. He could soon be a former member of the New York Jets.
The team will consider all their options regarding the beleaguered and benched quarterback in the offseason, a person with knowledge of the situation told The Associated Press on Thursday.
The person, who requested anonymity because the team's personnel plans are private, told the AP that the Jets have not made any determinations involving Sanchez.
That means his status is in limbo and a trade cannot be ruled out.
He's not alone. The futures of Tim Tebow, coach Rex Ryan, general manager Mike Tannenbaum and offensive coordinator Tony Sparano with the Jets also are uncertain.
Parting ways with Tebow, the immensely popular but little-used backup, appears a certainty after he came to New York amid lots of hype but had little impact in his one season with the Jets.
But the Jets could be hard-pressed to trade or cut Sanchez, who is due $8.25 million in guarantees next season.
"Anything dealing with the future past Buffalo (the regular-season finale) will be handled after that," Ryan said Thursday.
There are several complications that could lead to Sanchez actually sticking around in New York — whether it's as a backup or starter. Sanchez, who received a contract extension in March, would cost the Jets a $17.1 million salary cap hit next season. They could, however, spread that amount over the next two seasons if he is cut after June 1.
New York could also find it difficult to find a trading partner to unload Sanchez, who isn't likely a very attractive option at the moment after turning the ball over 50 times since the start of last season. With Tannenbaum's status unclear, teams might not be willing to even talk to him at this point about possible trades. Teams can't make trades until March.
When asked about possible Sanchez trade rumors, Ryan said: "That's news to me."
If the Jets did wind up trading Sanchez, the salary cap hit would still be $8.9 million.
The Daily News reported Thursday, according to sources, that the Jets would be interested in Michael Vick and that the Eagles quarterback would come to New York if it was clear he would be the starter. The newspaper also said Ryan "loves" Vick.
"I'll just focus on the players we have on this roster," Ryan said while laughing.
Sanchez, whom the Jets drafted fifth overall in 2009, was benched in favor of third-stringer Greg McElroy for at least the home finale Sunday against San Diego. Sanchez threw four interceptions and fumbled away the final offensive snap — and the Jets' playoff chances — in New York's 14-10 loss at Tennessee on Monday night.
He once drew comparisons to Joe Namath after helping the Jets to consecutive AFC title games in his first two seasons, but his lack of improvement the last two years have caused him to fall out of favor. Ryan was non-committal Thursday when asked about Sanchez's long-term future.
"Whether it's not a ringing endorsement or whatever, I have absolutely zero focus on that right now," he said. "Everybody knows I've been supportive of Mark Sanchez. I think he still has the skill set to be a good quarterback in this league and we've won a lot of games with him."
Tebow was supposed to be the spark that got the offense going, but instead he spent most of his time on the sideline. His numbers are far from special: He has rushed for 102 yards on 32 carries and is 6 of 8 for 39 yards, and has a stunning zero touchdowns.
Tebow repeatedly said he was "excited" to be a member of the Jets when he first came from Denver in a trade in March, and he reiterated that throughout the season. But he acknowledged that he was "a little bit disappointed" that Ryan chose McElroy to start over him — at least for Sunday.
Now, Tebow could be an ex-Jet less than a year after he came to New York with lots of expectations.
Read More..
The team will consider all their options regarding the beleaguered and benched quarterback in the offseason, a person with knowledge of the situation told The Associated Press on Thursday.
The person, who requested anonymity because the team's personnel plans are private, told the AP that the Jets have not made any determinations involving Sanchez.
That means his status is in limbo and a trade cannot be ruled out.
He's not alone. The futures of Tim Tebow, coach Rex Ryan, general manager Mike Tannenbaum and offensive coordinator Tony Sparano with the Jets also are uncertain.
Parting ways with Tebow, the immensely popular but little-used backup, appears a certainty after he came to New York amid lots of hype but had little impact in his one season with the Jets.
But the Jets could be hard-pressed to trade or cut Sanchez, who is due $8.25 million in guarantees next season.
"Anything dealing with the future past Buffalo (the regular-season finale) will be handled after that," Ryan said Thursday.
There are several complications that could lead to Sanchez actually sticking around in New York — whether it's as a backup or starter. Sanchez, who received a contract extension in March, would cost the Jets a $17.1 million salary cap hit next season. They could, however, spread that amount over the next two seasons if he is cut after June 1.
New York could also find it difficult to find a trading partner to unload Sanchez, who isn't likely a very attractive option at the moment after turning the ball over 50 times since the start of last season. With Tannenbaum's status unclear, teams might not be willing to even talk to him at this point about possible trades. Teams can't make trades until March.
When asked about possible Sanchez trade rumors, Ryan said: "That's news to me."
If the Jets did wind up trading Sanchez, the salary cap hit would still be $8.9 million.
The Daily News reported Thursday, according to sources, that the Jets would be interested in Michael Vick and that the Eagles quarterback would come to New York if it was clear he would be the starter. The newspaper also said Ryan "loves" Vick.
"I'll just focus on the players we have on this roster," Ryan said while laughing.
Sanchez, whom the Jets drafted fifth overall in 2009, was benched in favor of third-stringer Greg McElroy for at least the home finale Sunday against San Diego. Sanchez threw four interceptions and fumbled away the final offensive snap — and the Jets' playoff chances — in New York's 14-10 loss at Tennessee on Monday night.
He once drew comparisons to Joe Namath after helping the Jets to consecutive AFC title games in his first two seasons, but his lack of improvement the last two years have caused him to fall out of favor. Ryan was non-committal Thursday when asked about Sanchez's long-term future.
"Whether it's not a ringing endorsement or whatever, I have absolutely zero focus on that right now," he said. "Everybody knows I've been supportive of Mark Sanchez. I think he still has the skill set to be a good quarterback in this league and we've won a lot of games with him."
Tebow was supposed to be the spark that got the offense going, but instead he spent most of his time on the sideline. His numbers are far from special: He has rushed for 102 yards on 32 carries and is 6 of 8 for 39 yards, and has a stunning zero touchdowns.
Tebow repeatedly said he was "excited" to be a member of the Jets when he first came from Denver in a trade in March, and he reiterated that throughout the season. But he acknowledged that he was "a little bit disappointed" that Ryan chose McElroy to start over him — at least for Sunday.
Now, Tebow could be an ex-Jet less than a year after he came to New York with lots of expectations.
Barring setback, Redskins' RG3 looks good to go
Labels: SportsASHBURN, Va. (AP) — Robert Griffin III looks good to go.
The Washington Redskins rookie had a full practice Thursday for the second straight day as the team prepares for this week's game against the Philadelphia Eagles.
"I like what I see," coach Mike Shanahan said. "If there is no setback, he should be ready to go."
Griffin missed Sunday's win over the Cleveland Browns with a sprained right knee. On Wednesday, he had his first full practice since the injury, and coaches and doctors were eager to see how the knee would respond.
"There wasn't a setback today, so that's a good sign," Shanahan said.
Also Thursday, right tackle Tyler Polumbus remained unable to practice as he recovers from a concussion. Linebacker London Fletcher (sprained left ankle), linebacker Lorenzo Alexander (right shoulder) and defensive end Stephen Bowen (torn biceps) were limited, and linebacker Rob Jackson returned to practice after the birth of his baby girl.
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The Washington Redskins rookie had a full practice Thursday for the second straight day as the team prepares for this week's game against the Philadelphia Eagles.
"I like what I see," coach Mike Shanahan said. "If there is no setback, he should be ready to go."
Griffin missed Sunday's win over the Cleveland Browns with a sprained right knee. On Wednesday, he had his first full practice since the injury, and coaches and doctors were eager to see how the knee would respond.
"There wasn't a setback today, so that's a good sign," Shanahan said.
Also Thursday, right tackle Tyler Polumbus remained unable to practice as he recovers from a concussion. Linebacker London Fletcher (sprained left ankle), linebacker Lorenzo Alexander (right shoulder) and defensive end Stephen Bowen (torn biceps) were limited, and linebacker Rob Jackson returned to practice after the birth of his baby girl.
NFL-Youtube video wins Norwegian kicker tryout with NY Jets
Labels: SportsSTOCKHOLM, Dec 20 (Reuters) - A Norwegian whose Youtube clip of spectacular trick shots has been watched over half a million times could be on the verge of a National Football League (NFL) contract as a kicker.
The video caught the attention of professional teams in the United States, and Norwegian state broadcaster NRK has reported that its star, Havard Rugland, had a tryout for the NFL's New York Jets this week.
"It went well," Rugland told NRK. "They tested me on field goals and kickoffs. Obviously you feel a little more pressure here, but I stayed pretty calm."
The video shows the 27-year-old performing some outrageous tricks and kicks, from nailing 60-yard field goals to soccer-style scissor kicks and volleys with American footballs.
Made by Rugland, his brother and some friends, the video has spread rapidly on the Internet, clocking up over half a million hits and garnering interest from three U.S. colleges and the Jets.
Rugland has no prior American football experience but kicking coach Michael Husted says that if he continues to develop, he could reach the NFL.
"Havard has incredible talent as a kicker," Husted, who played nine seasons as an NFL kicker, told the Seattle Post-Intelligencer newspaper. "He has a cannon for a leg. As he continues to refine his technique, he could be one of the strongest kickers in the NFL."
Husted says he became aware of Rugland via the Youtube video, and that he was asked to bring the kicker to San Diego to prepare him for a trial with an NFL team.
"A GM (general manager) from an NFL team contacted me about Havard. He wanted Havard to come to train with me in San Diego before they were going to fly him in for a workout."
"He reminds me a lot of (Sebastian) Janikowski in terms of stature and strength," coach Husted said, drawing a parallel between Rugland and the Oakland Raiders' Polish placekicker.
Harvard has quickly gone from practicing on his own in his hometown of Aalgaard in southern Norway to being prepared for tryouts with teams in the game's biggest league.
"On this trip things have evolved rapidly, from just training alone to training to try out for a team. From where I am now, playing in the NFL is a long way to go, but my goal is to get a contract before the preparations begin for next season," says Rugland.
But even if he does get a pro contract, Rugland will have a long way to go before he matches the achievements of fellow Norwegian Jan Stenerud.
Read More..
The video caught the attention of professional teams in the United States, and Norwegian state broadcaster NRK has reported that its star, Havard Rugland, had a tryout for the NFL's New York Jets this week.
"It went well," Rugland told NRK. "They tested me on field goals and kickoffs. Obviously you feel a little more pressure here, but I stayed pretty calm."
The video shows the 27-year-old performing some outrageous tricks and kicks, from nailing 60-yard field goals to soccer-style scissor kicks and volleys with American footballs.
Made by Rugland, his brother and some friends, the video has spread rapidly on the Internet, clocking up over half a million hits and garnering interest from three U.S. colleges and the Jets.
Rugland has no prior American football experience but kicking coach Michael Husted says that if he continues to develop, he could reach the NFL.
"Havard has incredible talent as a kicker," Husted, who played nine seasons as an NFL kicker, told the Seattle Post-Intelligencer newspaper. "He has a cannon for a leg. As he continues to refine his technique, he could be one of the strongest kickers in the NFL."
Husted says he became aware of Rugland via the Youtube video, and that he was asked to bring the kicker to San Diego to prepare him for a trial with an NFL team.
"A GM (general manager) from an NFL team contacted me about Havard. He wanted Havard to come to train with me in San Diego before they were going to fly him in for a workout."
"He reminds me a lot of (Sebastian) Janikowski in terms of stature and strength," coach Husted said, drawing a parallel between Rugland and the Oakland Raiders' Polish placekicker.
Harvard has quickly gone from practicing on his own in his hometown of Aalgaard in southern Norway to being prepared for tryouts with teams in the game's biggest league.
"On this trip things have evolved rapidly, from just training alone to training to try out for a team. From where I am now, playing in the NFL is a long way to go, but my goal is to get a contract before the preparations begin for next season," says Rugland.
But even if he does get a pro contract, Rugland will have a long way to go before he matches the achievements of fellow Norwegian Jan Stenerud.
AP IMPACT: Steroids loom in major-college football
Labels: SportsWASHINGTON (AP) — With steroids easy to buy, testing weak and punishments inconsistent, college football players are packing on significant weight — 30 pounds or more in a single year, sometimes — without drawing much attention from their schools or the NCAA in a sport that earns tens of billions of dollars for teams.
Rules vary so widely that, on any given game day, a team with a strict no-steroid policy can face a team whose players have repeatedly tested positive.
An investigation by The Associated Press — based on interviews with players, testers, dealers and experts and an analysis of weight records for more than 61,000 players — revealed that while those running the multibillion-dollar sport say they believe the problem is under control, that control is hardly evident.
The sport's near-zero rate of positive steroids tests isn't an accurate gauge among college athletes. Random tests provide weak deterrence and, by design, fail to catch every player using steroids. Colleges also are reluctant to spend money on expensive steroid testing when cheaper ones for drugs like marijuana allow them to say they're doing everything they can to keep drugs out of football.
"It's nothing like what's going on in reality," said Don Catlin, an anti-doping pioneer who spent years conducting the NCAA's laboratory tests at UCLA. He became so frustrated with the college system that it was part of the reason he left the testing industry to focus on anti-doping research.
___
EDITOR'S NOTE — Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the first of a two-part series.
___
While other major sports have been beset by revelations of steroid use, college football has operated with barely a whiff of scandal. Between 1996 and 2010 — the era of Barry Bonds, Mark McGwire, Marion Jones and Lance Armstrong — the failure rate for NCAA steroid tests fell even closer to zero from an already low rate of less than 1 percent.
The AP's investigation, drawing upon more than a decade of official rosters from all 120 Football Bowl Subdivision teams, found thousands of players quickly putting on significant weight, even more than their fellow players. The information compiled by the AP included players who appeared for multiple years on the same teams.
For decades, scientific studies have shown that anabolic steroid use leads to an increase in body weight. Weight gain alone doesn't prove steroid use, but very rapid weight gain is one factor that would be deemed suspicious, said Kathy Turpin, senior director of sport drug testing for the National Center for Drug Free Sport, which conducts tests for the NCAA and more than 300 schools.
Yet the NCAA has never studied weight gain or considered it in regard to its steroid testing policies, said Mary Wilfert, the NCAA's associate director of health and safety.
The NCAA attributes the decline in positive tests to its year-round drug testing program, combined with anti-drug education and testing conducted by schools.
The AP's analysis found that, regardless of school, conference and won-loss record, many players gained weight at exceptional rates compared with their fellow athletes and while accounting for their heights.
Adding more than 20 or 25 pounds of lean muscle in a year is nearly impossible through diet and exercise alone, said Dan Benardot, director of the Laboratory for Elite Athlete Performance at Georgia State University.
In nearly all the rarest cases of weight gain in the AP study, players were offensive or defensive linemen, hulking giants who tower above 6-foot-3 and weigh 300 pounds or more. Four of those players interviewed by the AP said that they never used steroids and gained weight through dramatic increases in eating, up to six meals a day. Two said they were aware of other players using steroids.
"I ate 5-6 times a day," said Clint Oldenburg, who played for Colorado State starting in 2002 and for five years in the NFL. Oldenburg's weight increased over four years from 212 to 290.
Oldenburg told the AP he was surprised at the scope of steroid use in college football, even in Colorado State's locker room. "There were a lot of guys even on my team that were using." He declined to identify any of them.
The AP found more than 4,700 players — or about 7 percent of all players — who gained more than 20 pounds overall in a single year. It was common for the athletes to gain 10, 15 and up to 20 pounds in their first year under a rigorous regimen of weightlifting and diet. Others gained 25, 35 and 40 pounds in a season. In roughly 100 cases, players packed on as much 80 pounds in a single year.
In at least 11 instances, players that AP identified as packing on significant weight in college went on to fail NFL drug tests. But pro football's confidentiality rules make it impossible to know for certain which drugs were used and how many others failed tests that never became public.
Even though testers consider rapid weight gain suspicious, in practice it doesn't result in testing. Ben Lamaak, who arrived at Iowa State in 2006, said he weighed 225 pounds in high school. He graduated as a 320-pound offensive lineman and said he did it all naturally.
"I was just a young kid at that time, and I was still growing into my body," he said. "It really wasn't that hard for me to gain the weight. I love to eat."
In addition to random drug testing, Iowa State is one of many schools that have "reasonable suspicion" testing. That means players can be tested when their behavior or physical symptoms suggest drug use. Despite gaining 81 pounds in a year, Lamaak said he was never singled out for testing.
The associate athletics director for athletic training at Iowa State, Mark Coberley, said coaches and trainers use body composition, strength data and other factors to spot suspected cheaters. Lamaak, he said, was not suspicious because he gained a lot of "non-lean" weight.
But looking solely at the most significant weight gainers also ignores players like Bryan Maneafaiga.
In the summer of 2004, Bryan Maneafaiga was an undersized 180-pound running back trying to make the University of Hawaii football team. Twice — once in pre-season and once in the fall — he failed school drug tests, showing up positive for marijuana use but not steroids.
He'd started injecting stanozolol, a steroid, in the summer to help bulk up to a roster weight of 200 pounds. Once on the team, he'd occasionally inject the milky liquid into his buttocks the day before games.
"Food and good training will only get you so far," he told the AP recently.
Maneafaiga's former coach, June Jones, said it was news to him that one of his players had used steroids. Jones, who now coaches at Southern Methodist University, believes the NCAA does a good job rooting out steroid use.
On paper, college football has a strong drug policy. The NCAA conducts random, unannounced drug testing and the penalties for failure are severe. Players lose an entire year of eligibility after a first positive test. A second offense means permanent ineligibility for sports.
In practice, though, the NCAA's roughly 11,000 annual tests amount to a fraction of all athletes in Division I and II schools. Exactly how many tests are conducted each year on football players is unclear because the NCAA hasn't published its data for two years. And when it did, it periodically changed the formats, making it impossible to compare one year of football to the next.
Even when players are tested by the NCAA, experts like Catlin say it's easy enough to anticipate the test and develop a doping routine that results in a clean test by the time it occurs. NCAA rules say players can be notified up to two days in advance of a test, which Catlin says is plenty of time to beat a test if players have designed the right doping regimen. By comparison, Olympic athletes are given no notice.
Most schools that use Drug Free Sport do not test for anabolic steroids, Turpin said. Some are worried about the cost. Others don't think they have a problem. And others believe that since the NCAA tests for steroids their money is best spent testing for street drugs, she said.
Doping is a bigger deal at some schools than others.
At Notre Dame and Alabama, the teams that will soon compete for the national championship, players don't automatically miss games for testing positive for steroids. At Alabama, coaches have wide discretion. Notre Dame's student-athlete handbook says a player who fails a test can return to the field once the steroids are out of his system.
The University of North Carolina kicks players off the team after a single positive test for steroids. Auburn's student-athlete handbook calls for a half-season suspension for any athlete caught using performance-enhancing drugs.
At UCLA, home of the laboratory that for years set the standard for cutting-edge steroid testing, athletes can fail three drug tests before being suspended. At Bowling Green, testing is voluntary.
At the University of Maryland, students must get counseling after testing positive, but school officials are prohibited from disciplining first-time steroid users.
Only about half the student athletes in a 2009 NCAA survey said they believed school testing deterred drug use. As an association of colleges and universities, the NCAA could not unilaterally force schools to institute uniform testing policies and sanctions, Wilfert said.
"We can't tell them what to do, but if went through a membership process where they determined that this is what should be done, then it could happen," she said.
Read More..
Rules vary so widely that, on any given game day, a team with a strict no-steroid policy can face a team whose players have repeatedly tested positive.
An investigation by The Associated Press — based on interviews with players, testers, dealers and experts and an analysis of weight records for more than 61,000 players — revealed that while those running the multibillion-dollar sport say they believe the problem is under control, that control is hardly evident.
The sport's near-zero rate of positive steroids tests isn't an accurate gauge among college athletes. Random tests provide weak deterrence and, by design, fail to catch every player using steroids. Colleges also are reluctant to spend money on expensive steroid testing when cheaper ones for drugs like marijuana allow them to say they're doing everything they can to keep drugs out of football.
"It's nothing like what's going on in reality," said Don Catlin, an anti-doping pioneer who spent years conducting the NCAA's laboratory tests at UCLA. He became so frustrated with the college system that it was part of the reason he left the testing industry to focus on anti-doping research.
___
EDITOR'S NOTE — Whether for athletics or age, Americans from teenagers to baby boomers are trying to get an edge by illegally using anabolic steroids and human growth hormone, despite well-documented risks. This is the first of a two-part series.
___
While other major sports have been beset by revelations of steroid use, college football has operated with barely a whiff of scandal. Between 1996 and 2010 — the era of Barry Bonds, Mark McGwire, Marion Jones and Lance Armstrong — the failure rate for NCAA steroid tests fell even closer to zero from an already low rate of less than 1 percent.
The AP's investigation, drawing upon more than a decade of official rosters from all 120 Football Bowl Subdivision teams, found thousands of players quickly putting on significant weight, even more than their fellow players. The information compiled by the AP included players who appeared for multiple years on the same teams.
For decades, scientific studies have shown that anabolic steroid use leads to an increase in body weight. Weight gain alone doesn't prove steroid use, but very rapid weight gain is one factor that would be deemed suspicious, said Kathy Turpin, senior director of sport drug testing for the National Center for Drug Free Sport, which conducts tests for the NCAA and more than 300 schools.
Yet the NCAA has never studied weight gain or considered it in regard to its steroid testing policies, said Mary Wilfert, the NCAA's associate director of health and safety.
The NCAA attributes the decline in positive tests to its year-round drug testing program, combined with anti-drug education and testing conducted by schools.
The AP's analysis found that, regardless of school, conference and won-loss record, many players gained weight at exceptional rates compared with their fellow athletes and while accounting for their heights.
Adding more than 20 or 25 pounds of lean muscle in a year is nearly impossible through diet and exercise alone, said Dan Benardot, director of the Laboratory for Elite Athlete Performance at Georgia State University.
In nearly all the rarest cases of weight gain in the AP study, players were offensive or defensive linemen, hulking giants who tower above 6-foot-3 and weigh 300 pounds or more. Four of those players interviewed by the AP said that they never used steroids and gained weight through dramatic increases in eating, up to six meals a day. Two said they were aware of other players using steroids.
"I ate 5-6 times a day," said Clint Oldenburg, who played for Colorado State starting in 2002 and for five years in the NFL. Oldenburg's weight increased over four years from 212 to 290.
Oldenburg told the AP he was surprised at the scope of steroid use in college football, even in Colorado State's locker room. "There were a lot of guys even on my team that were using." He declined to identify any of them.
The AP found more than 4,700 players — or about 7 percent of all players — who gained more than 20 pounds overall in a single year. It was common for the athletes to gain 10, 15 and up to 20 pounds in their first year under a rigorous regimen of weightlifting and diet. Others gained 25, 35 and 40 pounds in a season. In roughly 100 cases, players packed on as much 80 pounds in a single year.
In at least 11 instances, players that AP identified as packing on significant weight in college went on to fail NFL drug tests. But pro football's confidentiality rules make it impossible to know for certain which drugs were used and how many others failed tests that never became public.
Even though testers consider rapid weight gain suspicious, in practice it doesn't result in testing. Ben Lamaak, who arrived at Iowa State in 2006, said he weighed 225 pounds in high school. He graduated as a 320-pound offensive lineman and said he did it all naturally.
"I was just a young kid at that time, and I was still growing into my body," he said. "It really wasn't that hard for me to gain the weight. I love to eat."
In addition to random drug testing, Iowa State is one of many schools that have "reasonable suspicion" testing. That means players can be tested when their behavior or physical symptoms suggest drug use. Despite gaining 81 pounds in a year, Lamaak said he was never singled out for testing.
The associate athletics director for athletic training at Iowa State, Mark Coberley, said coaches and trainers use body composition, strength data and other factors to spot suspected cheaters. Lamaak, he said, was not suspicious because he gained a lot of "non-lean" weight.
But looking solely at the most significant weight gainers also ignores players like Bryan Maneafaiga.
In the summer of 2004, Bryan Maneafaiga was an undersized 180-pound running back trying to make the University of Hawaii football team. Twice — once in pre-season and once in the fall — he failed school drug tests, showing up positive for marijuana use but not steroids.
He'd started injecting stanozolol, a steroid, in the summer to help bulk up to a roster weight of 200 pounds. Once on the team, he'd occasionally inject the milky liquid into his buttocks the day before games.
"Food and good training will only get you so far," he told the AP recently.
Maneafaiga's former coach, June Jones, said it was news to him that one of his players had used steroids. Jones, who now coaches at Southern Methodist University, believes the NCAA does a good job rooting out steroid use.
On paper, college football has a strong drug policy. The NCAA conducts random, unannounced drug testing and the penalties for failure are severe. Players lose an entire year of eligibility after a first positive test. A second offense means permanent ineligibility for sports.
In practice, though, the NCAA's roughly 11,000 annual tests amount to a fraction of all athletes in Division I and II schools. Exactly how many tests are conducted each year on football players is unclear because the NCAA hasn't published its data for two years. And when it did, it periodically changed the formats, making it impossible to compare one year of football to the next.
Even when players are tested by the NCAA, experts like Catlin say it's easy enough to anticipate the test and develop a doping routine that results in a clean test by the time it occurs. NCAA rules say players can be notified up to two days in advance of a test, which Catlin says is plenty of time to beat a test if players have designed the right doping regimen. By comparison, Olympic athletes are given no notice.
Most schools that use Drug Free Sport do not test for anabolic steroids, Turpin said. Some are worried about the cost. Others don't think they have a problem. And others believe that since the NCAA tests for steroids their money is best spent testing for street drugs, she said.
Doping is a bigger deal at some schools than others.
At Notre Dame and Alabama, the teams that will soon compete for the national championship, players don't automatically miss games for testing positive for steroids. At Alabama, coaches have wide discretion. Notre Dame's student-athlete handbook says a player who fails a test can return to the field once the steroids are out of his system.
The University of North Carolina kicks players off the team after a single positive test for steroids. Auburn's student-athlete handbook calls for a half-season suspension for any athlete caught using performance-enhancing drugs.
At UCLA, home of the laboratory that for years set the standard for cutting-edge steroid testing, athletes can fail three drug tests before being suspended. At Bowling Green, testing is voluntary.
At the University of Maryland, students must get counseling after testing positive, but school officials are prohibited from disciplining first-time steroid users.
Only about half the student athletes in a 2009 NCAA survey said they believed school testing deterred drug use. As an association of colleges and universities, the NCAA could not unilaterally force schools to institute uniform testing policies and sanctions, Wilfert said.
"We can't tell them what to do, but if went through a membership process where they determined that this is what should be done, then it could happen," she said.
Wall St climbs on economy bets as it looks past 'cliff'
Labels: BusinessNEW YORK (Reuters) - U.S. stocks rallied on strong volume on Tuesday, capping off the S&P 500's best two-day run in a month, on confidence that a deal would be struck in Washington to avoid painful spending cuts and tax hikes that could hurt the economy.
Banks, energy and technology - sectors that would benefit during economic expansion - led gains as investors remain confident that lawmakers will come to an agreement to avoid the so-called "fiscal cliff" deadline at the end of the year.
The PHLX oil services sector index jumped 3.1 percent, with eight of its 15 components up 3 percent or more.
"The view is that the economy is getting better, and that is always good for energy demand," said Shawn Hackett, president at Hackett Financial Advisors in Boynton Beach, Florida.
Hackett said the United States would avoid "whatever the cliff means" for the economy, allowing investors to focus on growth.
President Barack Obama's most recent offer to Republicans in the ongoing budget talks makes concessions on taxes and social programs spending. House Speaker John Boehner said the offer is "not there yet," though he remains hopeful about an agreement. Senate Democrats, however, have expressed concern about cuts to Social Security.
Financial stocks shot higher, as traders bet on a greater demand for loans and a steepening of the yield curve. U.S. government debt sold off Tuesday, with the benchmark 10-year U.S. Treasury note's yield briefly hitting its highest since late October.
The S&P financial sector added 1.5 percent.
The Dow Jones industrial average rose 115.57 points, or 0.87 percent, to 13,350.96 at the close. The S&P 500 gained 16.43 points, or 1.15 percent, to 1,446.79. The Nasdaq Composite added 43.93 points, or 1.46 percent, to 3,054.53.
It was the S&P 500's first back-to-back gain of more than 1 percent since late July.
Stocks of smaller companies outperformed the broader market, with the Russell 2000 up 1.5 percent.
Shares of firearm makers sank in the aftermath of a school shooting in Newtown, Connecticut, on Friday that killed 20 young children and six adults.
Smith and Wesson fell 10 percent to $7.79 on its largest-ever daily volume, though it was still up about 77 percent so far this year. Sturm Ruger and Co slid 7.7 percent Tuesday to $40.60.
Private equity firm Cerberus Capital Management said it would sell gunmaker Freedom Group, whose Bushmaster AR-15 rifle was used in the Connecticut massacre. Dick's Sporting Goods suspended the sale of certain semi-automatic rifles in its stores nationwide.
Technology shares rose, led by Apple, up 2.9 percent at $533.90 after losing nearly 13 percent in the last two weeks. The S&P Information Technology Index rose 1.7 percent.
Arbitron Inc surged 23.6 percent to $47.03 after Nielsen Holdings NV agreed to buy the media and marketing research firm in a deal worth $1.26 billion. Nielsen rose 4.4 percent to $30.92.
About 7.4 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, more than the daily average so far this year of about 6.5 billion shares.
Read More..
Banks, energy and technology - sectors that would benefit during economic expansion - led gains as investors remain confident that lawmakers will come to an agreement to avoid the so-called "fiscal cliff" deadline at the end of the year.
The PHLX oil services sector index jumped 3.1 percent, with eight of its 15 components up 3 percent or more.
"The view is that the economy is getting better, and that is always good for energy demand," said Shawn Hackett, president at Hackett Financial Advisors in Boynton Beach, Florida.
Hackett said the United States would avoid "whatever the cliff means" for the economy, allowing investors to focus on growth.
President Barack Obama's most recent offer to Republicans in the ongoing budget talks makes concessions on taxes and social programs spending. House Speaker John Boehner said the offer is "not there yet," though he remains hopeful about an agreement. Senate Democrats, however, have expressed concern about cuts to Social Security.
Financial stocks shot higher, as traders bet on a greater demand for loans and a steepening of the yield curve. U.S. government debt sold off Tuesday, with the benchmark 10-year U.S. Treasury note's yield briefly hitting its highest since late October.
The S&P financial sector added 1.5 percent.
The Dow Jones industrial average rose 115.57 points, or 0.87 percent, to 13,350.96 at the close. The S&P 500 gained 16.43 points, or 1.15 percent, to 1,446.79. The Nasdaq Composite added 43.93 points, or 1.46 percent, to 3,054.53.
It was the S&P 500's first back-to-back gain of more than 1 percent since late July.
Stocks of smaller companies outperformed the broader market, with the Russell 2000 up 1.5 percent.
Shares of firearm makers sank in the aftermath of a school shooting in Newtown, Connecticut, on Friday that killed 20 young children and six adults.
Smith and Wesson fell 10 percent to $7.79 on its largest-ever daily volume, though it was still up about 77 percent so far this year. Sturm Ruger and Co slid 7.7 percent Tuesday to $40.60.
Private equity firm Cerberus Capital Management said it would sell gunmaker Freedom Group, whose Bushmaster AR-15 rifle was used in the Connecticut massacre. Dick's Sporting Goods suspended the sale of certain semi-automatic rifles in its stores nationwide.
Technology shares rose, led by Apple, up 2.9 percent at $533.90 after losing nearly 13 percent in the last two weeks. The S&P Information Technology Index rose 1.7 percent.
Arbitron Inc surged 23.6 percent to $47.03 after Nielsen Holdings NV agreed to buy the media and marketing research firm in a deal worth $1.26 billion. Nielsen rose 4.4 percent to $30.92.
About 7.4 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, more than the daily average so far this year of about 6.5 billion shares.
South Korea votes in tight race on economy and jobs
Labels: BusinessSEOUL (Reuters) - South Koreans voted on Wednesday in freezing winter temperatures for a new president in a battle between the daughter of their former military ruler and a man her father jailed for political activism.
The next president of Asia's fourth largest economy will have to deal with a hostile North Korea, under young and untested new leader Kim Jong-un, and a slowing domestic economy.
Conservative candidate Park Geun-hye had a thin lead in polls published last week, the last allowed under election rules.
Park's left-wing challenger, Moon Jae-in, has promised to perform global pop sensation Psy's Gangnam Style "horse dance" if turnout hits 77 percent.
That turnout would signify a high level of participation by young voters who pollsters say could propel Moon into the presidential "Blue House".
With three hours until the polls close, turnout was 59.3 percent, higher than the two previous presidential elections and well on track to achieve 70 percent.
If Park wins, the unmarried 60-year old would be the first woman leader of the country, which is still largely run by men in dark suits. {ID:nL4N09K1P3]
"I trust her. She will save our country," said Park Hye-sook, 67, who voted in an affluent Seoul district early in the morning.
"Her father ... rescued the country," said the housewife and grandmother, who is no relation to the candidate, reflecting the admiration many older voters feel for former president Park Chung-hee, which has translated into support for his daughter.
She has pledged dialogue with impoverished North Korea, whose rocket launch last week reinforced fears it is developing a long-range missile. She has promised a tough line on the isolated North's nuclear and missile programs.
Park, wearing a red muffler, was cheered by crowds chanting her name as she entered the polling station and urged voters to "open a new era".
Moon is a former human rights lawyer who has promised unconditional aid for North Korea and to reintroduce an engagement policy that ushered in closer ties between the Cold War rivals.
Those ties started unraveling with the shooting by North Korea of a tourist from the South in 2008, and deteriorated with the sinking of a South Korean warship in 2010, which the North denies, and the shelling of a South Korean island the same year.
Moon cast his ballot in the southern city of Busan and said voters disenchanted by five years of conservative rule under Lee Myung-bak, who is constitutionally limited to a single term, had the chance to "change the world with their vote".
IT'S THE ECONOMY
More than 40 million people are eligible to cast their votes. Polling stations will close at 6 p.m. (0900 GMT) and the three network television stations will announce the result of a jointly conducted exit poll shortly afterwards.
While Park's bid to become president has stirred debate and divisions about her father's rule, and the prospect of a nuclear-armed North Korea also hangs over the country, the main issue in the election has been the economy.
While outwardly successful and home to some of the world's biggest companies, such as Samsung Electronics Co Ltd and Hyundai Motor Co, South Korean society has become steadily more unequal.
Park advocated a broader welfare policy than when she ran five years ago, when she failed to win the conservative presidential nomination, but says she will not raise taxes or spend more money to boost the economy, instead relying on cutting wasteful spending.
Moon, by contrast, has proposed an $18 billion jobs package, boosting maternity pay and taxing the super-rich. He has also pledged to repeal a controversial free trade agreement with the United States.
Park's father took power in a 1961 coup and helped push South Korea from poverty to developed nation status, but at the cost of repressing human rights and democracy.
His wife was shot by a North Korean-backed assassin who was gunning for him in 1974 and his then young daughter took on the role of South Korea's first lady until Park's own killing in 1979 by his security chief after a drunken night out.
The younger Park has at times sought to appeal to the spirit that her father embodied. On Tuesday she evoked his economic call to arms of "Let's Live well" in a bid to rally her party faithful.
But at other times she has stumbled over apologies to victims of her father's rule and sought to appeal to her mother's softer image.
Moon, jailed in 1975 when he was a student activist, has attacked Park "for living the life of a princess". His only political experience was as an aide to former President Roh Moo-hyun, who was his law partner.
Read More..
The next president of Asia's fourth largest economy will have to deal with a hostile North Korea, under young and untested new leader Kim Jong-un, and a slowing domestic economy.
Conservative candidate Park Geun-hye had a thin lead in polls published last week, the last allowed under election rules.
Park's left-wing challenger, Moon Jae-in, has promised to perform global pop sensation Psy's Gangnam Style "horse dance" if turnout hits 77 percent.
That turnout would signify a high level of participation by young voters who pollsters say could propel Moon into the presidential "Blue House".
With three hours until the polls close, turnout was 59.3 percent, higher than the two previous presidential elections and well on track to achieve 70 percent.
If Park wins, the unmarried 60-year old would be the first woman leader of the country, which is still largely run by men in dark suits. {ID:nL4N09K1P3]
"I trust her. She will save our country," said Park Hye-sook, 67, who voted in an affluent Seoul district early in the morning.
"Her father ... rescued the country," said the housewife and grandmother, who is no relation to the candidate, reflecting the admiration many older voters feel for former president Park Chung-hee, which has translated into support for his daughter.
She has pledged dialogue with impoverished North Korea, whose rocket launch last week reinforced fears it is developing a long-range missile. She has promised a tough line on the isolated North's nuclear and missile programs.
Park, wearing a red muffler, was cheered by crowds chanting her name as she entered the polling station and urged voters to "open a new era".
Moon is a former human rights lawyer who has promised unconditional aid for North Korea and to reintroduce an engagement policy that ushered in closer ties between the Cold War rivals.
Those ties started unraveling with the shooting by North Korea of a tourist from the South in 2008, and deteriorated with the sinking of a South Korean warship in 2010, which the North denies, and the shelling of a South Korean island the same year.
Moon cast his ballot in the southern city of Busan and said voters disenchanted by five years of conservative rule under Lee Myung-bak, who is constitutionally limited to a single term, had the chance to "change the world with their vote".
IT'S THE ECONOMY
More than 40 million people are eligible to cast their votes. Polling stations will close at 6 p.m. (0900 GMT) and the three network television stations will announce the result of a jointly conducted exit poll shortly afterwards.
While Park's bid to become president has stirred debate and divisions about her father's rule, and the prospect of a nuclear-armed North Korea also hangs over the country, the main issue in the election has been the economy.
While outwardly successful and home to some of the world's biggest companies, such as Samsung Electronics Co Ltd and Hyundai Motor Co, South Korean society has become steadily more unequal.
Park advocated a broader welfare policy than when she ran five years ago, when she failed to win the conservative presidential nomination, but says she will not raise taxes or spend more money to boost the economy, instead relying on cutting wasteful spending.
Moon, by contrast, has proposed an $18 billion jobs package, boosting maternity pay and taxing the super-rich. He has also pledged to repeal a controversial free trade agreement with the United States.
Park's father took power in a 1961 coup and helped push South Korea from poverty to developed nation status, but at the cost of repressing human rights and democracy.
His wife was shot by a North Korean-backed assassin who was gunning for him in 1974 and his then young daughter took on the role of South Korea's first lady until Park's own killing in 1979 by his security chief after a drunken night out.
The younger Park has at times sought to appeal to the spirit that her father embodied. On Tuesday she evoked his economic call to arms of "Let's Live well" in a bid to rally her party faithful.
But at other times she has stumbled over apologies to victims of her father's rule and sought to appeal to her mother's softer image.
Moon, jailed in 1975 when he was a student activist, has attacked Park "for living the life of a princess". His only political experience was as an aide to former President Roh Moo-hyun, who was his law partner.
Google filing error shocks investors, exposes process
Labels: BusinessSAN FRANCISCO/NEW YORK (Reuters) - R.R. Donnelley & Sons Co handles thousands of securities filings a year for corporate clients in a routine process that is invisible to most investors. On Thursday Google and its shareholders found out just what happens when that process goes wrong.
Google issued a statement blaming Donnelley, its filing agent, after the Internet search company's quarterly results were released by the U.S. Securities and Exchange Commission hours ahead of schedule.
Earnings were far less than analysts expected and Google shares immediately plunged as much as 10.5 percent, knocking $26 billion off its market capitalization - the equivalent, as it happens, of about 13 R.R. Donnelleys.
It was quickly obvious that a mistake had been made -- the second paragraph of the filing said "PENDING LARRY QUOTE" instead of an actual quote from Google CEO Larry Page -- but it was not clear why.
Within minutes, though, an unknown prankster set up a "PendingLarry" Twitter feed to hypothesize what the missing quote might be. Among the highlights: "Man, our privacy was WAY violated today."
Donnelley shares lost more than 5 percent after Google started pointing the finger, though they recovered later in the day. The company did not respond to a call for comment, but issued a statement to CNBC in which it said it was investigating the circumstances of the release.
Best known as a provider of printing services, Donnelley is also the top SEC filing agent in the country, handling more than 75,000 submissions this year as of mid-October, according to SECInfo.com.
Filing agents like Donnelley take paper documents and convert them for submission to the SEC in the appropriate format. The company also owns the filing portal EDGAR Online.
WHO GOOFED?
It is far from the first time a company's earnings have somehow gotten out early.
In late 2010 and early 2011, inadvertent releases - usually by a misplaced release on a website - plagued companies like Walt Disney Co (NYS:DIS) and Microsoft Corp (NSQ:MSFT).
The common thread in all of those cases is that investors who are not in the right place at the right time to see the news may suffer for it.
"Some who didn't get a chance to sell will try to, and others will be looking for bargains. I'm sure a lot of Google owners were caught off guard," said Randy Frederick, managing director of active trading and derivatives for Charles Schwab in Austin, Texas.
After the first question of "who goofed?" was sorted out Thursday afternoon, the second one being asked by investors was "can we sue?"
"Everyone is trying to figure out if there's any legal issue with respect to R.R. Donnelley. Google is halted, Donnelley is down big-time on the news since they're allegedly not supposed to have released the information," said Michael Matousek, senior trader at U.S. Global Investors in San Antonio.
But one plaintiffs lawyer who sues companies on behalf of investors said shareholders would not have a claim against either Google or R.R. Donnelley because the earnings disclosure was likely a mistake.
"There's no fraudulent intent here," said Reed Kathrein with Hagens Berman.
R.R. Donnelley may not be entirely off the hook with Google, however. The company could have a negligence claim to recover any additional costs it incurred in responding to the incident, Kathrein said.
Any potential damages against R.R. Donnelley could be limited, though, by the contract between the two companies.
Late Thursday, Google filed an amended press release with the missing quote and a confirmation that the figures in the original were accurate.
R.R. Donnelley shares were up 2 cents at $10.87 in late trading. Google was down 8.1 percent to $693.94 after trading resumed.
Read More..
Google issued a statement blaming Donnelley, its filing agent, after the Internet search company's quarterly results were released by the U.S. Securities and Exchange Commission hours ahead of schedule.
Earnings were far less than analysts expected and Google shares immediately plunged as much as 10.5 percent, knocking $26 billion off its market capitalization - the equivalent, as it happens, of about 13 R.R. Donnelleys.
It was quickly obvious that a mistake had been made -- the second paragraph of the filing said "PENDING LARRY QUOTE" instead of an actual quote from Google CEO Larry Page -- but it was not clear why.
Within minutes, though, an unknown prankster set up a "PendingLarry" Twitter feed to hypothesize what the missing quote might be. Among the highlights: "Man, our privacy was WAY violated today."
Donnelley shares lost more than 5 percent after Google started pointing the finger, though they recovered later in the day. The company did not respond to a call for comment, but issued a statement to CNBC in which it said it was investigating the circumstances of the release.
Best known as a provider of printing services, Donnelley is also the top SEC filing agent in the country, handling more than 75,000 submissions this year as of mid-October, according to SECInfo.com.
Filing agents like Donnelley take paper documents and convert them for submission to the SEC in the appropriate format. The company also owns the filing portal EDGAR Online.
WHO GOOFED?
It is far from the first time a company's earnings have somehow gotten out early.
In late 2010 and early 2011, inadvertent releases - usually by a misplaced release on a website - plagued companies like Walt Disney Co (NYS:DIS) and Microsoft Corp (NSQ:MSFT).
The common thread in all of those cases is that investors who are not in the right place at the right time to see the news may suffer for it.
"Some who didn't get a chance to sell will try to, and others will be looking for bargains. I'm sure a lot of Google owners were caught off guard," said Randy Frederick, managing director of active trading and derivatives for Charles Schwab in Austin, Texas.
After the first question of "who goofed?" was sorted out Thursday afternoon, the second one being asked by investors was "can we sue?"
"Everyone is trying to figure out if there's any legal issue with respect to R.R. Donnelley. Google is halted, Donnelley is down big-time on the news since they're allegedly not supposed to have released the information," said Michael Matousek, senior trader at U.S. Global Investors in San Antonio.
But one plaintiffs lawyer who sues companies on behalf of investors said shareholders would not have a claim against either Google or R.R. Donnelley because the earnings disclosure was likely a mistake.
"There's no fraudulent intent here," said Reed Kathrein with Hagens Berman.
R.R. Donnelley may not be entirely off the hook with Google, however. The company could have a negligence claim to recover any additional costs it incurred in responding to the incident, Kathrein said.
Any potential damages against R.R. Donnelley could be limited, though, by the contract between the two companies.
Late Thursday, Google filed an amended press release with the missing quote and a confirmation that the figures in the original were accurate.
R.R. Donnelley shares were up 2 cents at $10.87 in late trading. Google was down 8.1 percent to $693.94 after trading resumed.
Who Owns America’s Debt?
Labels: BusinessAs the U.S. continues to rack up more than $1 trillion of new debt every year, Americans are beginning to worry about who we owe this money to and how much power our creditors have over us.
According to Barry P. Bosworth, a senior fellow at the Brookings Institution, our two biggest foreign creditors are Japan and China.
Although it may seem as though our debt to these countries renders us a puppet on strings, Bosworth says this fear is overblown. The U.S. market is very important to China's economy, so China would be loathe to do anything that might exacerbate tensions or disrupt trade between the two countries. And the same can be said for Japan. China owns $1.15 trillion of U.S. government debt -- more than any other country -- but U.S. taxpayers actually owe less money to China compared to recent years. China holds 10% of U.S. Treasuries, down from 12% two years ago.
Related: China's Slow Growth 'Marks An End of an Era' But No Hard Landing
And what about all the anti-China rhetoric that we hear about on the campaign trail?
Republican Presidential Nominee Mitt Romney has been promising the country that he will declare China a "currency manipulator" on the first day of his presidency--and then enact tariffs as necessary until he forces China to level the trading playing field. Is that something that Romney is actually likely to do if he gets elected?
No, says Bosworth.
Tough talk with respect to China has become standard rhetoric for any presidential challenger. If and when Romney becomes president, his position will likely mellow.
Bosworth also says that the problem with the U.S.-China trade relationship is not, as is commonly believed, that China doesn't play fair. China has actually addressed lots of its unfair practices over the past decade, Bosworth says, while the U.S. is still pursuing the same old self-destructive habits. Until we stop consuming so much and start producing more, Bosworth says, we're in no position to demand anything.
Read More..
According to Barry P. Bosworth, a senior fellow at the Brookings Institution, our two biggest foreign creditors are Japan and China.
Although it may seem as though our debt to these countries renders us a puppet on strings, Bosworth says this fear is overblown. The U.S. market is very important to China's economy, so China would be loathe to do anything that might exacerbate tensions or disrupt trade between the two countries. And the same can be said for Japan. China owns $1.15 trillion of U.S. government debt -- more than any other country -- but U.S. taxpayers actually owe less money to China compared to recent years. China holds 10% of U.S. Treasuries, down from 12% two years ago.
Related: China's Slow Growth 'Marks An End of an Era' But No Hard Landing
And what about all the anti-China rhetoric that we hear about on the campaign trail?
Republican Presidential Nominee Mitt Romney has been promising the country that he will declare China a "currency manipulator" on the first day of his presidency--and then enact tariffs as necessary until he forces China to level the trading playing field. Is that something that Romney is actually likely to do if he gets elected?
No, says Bosworth.
Tough talk with respect to China has become standard rhetoric for any presidential challenger. If and when Romney becomes president, his position will likely mellow.
Bosworth also says that the problem with the U.S.-China trade relationship is not, as is commonly believed, that China doesn't play fair. China has actually addressed lots of its unfair practices over the past decade, Bosworth says, while the U.S. is still pursuing the same old self-destructive habits. Until we stop consuming so much and start producing more, Bosworth says, we're in no position to demand anything.
US housing construction up 15 percent in September
Labels: BusinessWASHINGTON (AP) -- U.S. builders started construction on single-family homes and apartments in September at the fastest rate since July 2008, a further indication that the housing recovery is strengthening.
The Commerce Department said Wednesday that builders broke ground on homes at a seasonally adjusted annual rate of 872,000 in September. That's an increase of 15 percent from the August level.
Applications for building permits, a good sign of future construction, jumped nearly 12 percent to an annual rate of 894,000, also the highest since July 2008.
[Click here to see home loan rates in your area.]
The strength in September came from both single-family construction, which rose 11 percent, and apartments, which increased 25.1 percent.
Construction activity is now 82.5 percent higher than the recession low hit in April 2009. Activity is still well below the roughly 1.5 million rate that is consistent with healthier markets.
Still, the surge in construction suggests builders believe the housing rebound is durable.
Builder confidence reached at a six-year high this month, according to a survey by the National Association of Home Builders. The group's index of builder sentiment rose to a reading of 41. While that's still below the level of 50 that signals a healthy market, it has steadily climbed over the past year from a reading of 17.
Sales of new and previously owned homes have been slowly improving this year, and home prices are starting to show consistent gains.
Record-low mortgage have encouraged more people to buy. And the Federal Reserve's aggressive policies could push long-term interest rates even lower, making home-buying affordable for the foreseeable future.
Housing is expected to keep improving next year. But many economists say economic growth will stay muted until companies step up hiring and consumers start spending more.
Though new homes represent less than 20 percent of the housing sales market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to data from the home builders group.
Read More..
The Commerce Department said Wednesday that builders broke ground on homes at a seasonally adjusted annual rate of 872,000 in September. That's an increase of 15 percent from the August level.
Applications for building permits, a good sign of future construction, jumped nearly 12 percent to an annual rate of 894,000, also the highest since July 2008.
[Click here to see home loan rates in your area.]
The strength in September came from both single-family construction, which rose 11 percent, and apartments, which increased 25.1 percent.
Construction activity is now 82.5 percent higher than the recession low hit in April 2009. Activity is still well below the roughly 1.5 million rate that is consistent with healthier markets.
Still, the surge in construction suggests builders believe the housing rebound is durable.
Builder confidence reached at a six-year high this month, according to a survey by the National Association of Home Builders. The group's index of builder sentiment rose to a reading of 41. While that's still below the level of 50 that signals a healthy market, it has steadily climbed over the past year from a reading of 17.
Sales of new and previously owned homes have been slowly improving this year, and home prices are starting to show consistent gains.
Record-low mortgage have encouraged more people to buy. And the Federal Reserve's aggressive policies could push long-term interest rates even lower, making home-buying affordable for the foreseeable future.
Housing is expected to keep improving next year. But many economists say economic growth will stay muted until companies step up hiring and consumers start spending more.
Though new homes represent less than 20 percent of the housing sales market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to data from the home builders group.
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