Futures slip after S&P hits pre-recession levels

 Stock futures are cooling off after the Standard & Poor's index reached levels last week not seen since the start of the Great Recession.
Dow Jones industrial futures are down 8 points to 13,338. The broader S&P futures have lost 0.80 points to 1,456.90. Nasdaq futures are down a point at 2,712.
Investors appear to be taking some money off the table with the earnings season kicking off Tuesday.
The S&P 500 is now 2 percent higher than it was on election day and on Friday closed at 1,466, the highest since December 2007.
On Monday, Bank of America said it would pay Fannie Mae $3.6 billion and buy back $6.8 billion in loans to settle mortgage claims from the housing meltdown.

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US troops arrive in Turkey for Patriot missiles

ANKARA, Turkey (AP) — U.S. troops have started to arrive in Turkey to man Patriot missiles meant to protect the NATO ally from potential Syrian warheads, the U.S. military said Friday.
The United States, Germany and the Netherlands are each deploying two batteries of the U.S.-built defense system to boost ally Turkey's air defenses against any spillover from Syria's nearly 2-year civil war. The Patriot systems are expected to become operational later this month.
The Stuttgart, Germany-based U.S. European Command said in a statement that U.S. personnel and equipment had started arriving at Turkey's southern Incirlik Air Base. Some 400 personnel and equipment from the U.S. military's Fort Sill, Oklahoma-based 3rd Battalion were to be airlifted to Turkey over the coming days, while additional equipment was expected to reach Turkey by sea later in January, the Command said.
NATO endorsed Turkey's request for the Patriots on Nov. 30 after several Syrian shells landed on Turkish territory.
Last month, NATO said the Syrian military has continued to fire Scud-type missiles, although none had hit Turkish territory, and said the alliance was justified in deploying the anti-missile systems in Turkey. Ankara is supporting the Syrian opposition and rebels and is providing shelter to Syrian refugees.
More than 1,000 American, German and Dutch troops are to be based in Turkey to operate the batteries. NATO said the Americans will be based at Gaziantep, 50 kilometers (31 miles) north of Syria. The Germans will be based at Kahramanmaras, located about 100 kilometers (60 miles) north of the Syrian border; the Dutch at Adana, about 100 kilometers (66 miles) west of the border.
Navy Vice Adm. Charles Martoglio, the Command's deputy chief, reiterated that the Patriots' deployment is for defensive purposes only and would not support a no-fly zone "or any offensive operation," in Syria, according to the Command's statement.
"Turkey is an important NATO ally and we welcome the opportunity to support the Turkish government's request in accordance with the NATO standing defense plan," it quoted Martoglio as saying.
Syria is reported to have an array of artillery rockets, as well as medium-range missiles — some capable of carrying chemical warheads. These include Soviet-built SS-21 Scarabs and Scud-B missiles, originally designed to deliver nuclear warheads.
Last month, a top military commander from Iran — a key Syrian ally — warned Turkey against stationing the NATO systems on its territory, saying such a move risks conflict with Syria.

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Church of England ends ban on gay bishops

LONDON (Reuters) - The Church of England has lifted a ban on gay male clergy who live with their partners from becoming bishops on condition they pledge to stay celibate, threatening to reignite an issue that splits the 80-million-strong global Anglican community.
The issue of homosexuality has driven a rift between Western and African Anglicans since a Canadian diocese approved blessings for same-sex couples in 2002 and U.S. Anglicans in the Episcopal Church appointed an openly gay man as a bishop in 2003.
The Church of England, struggling to remain relevant in modern Britain despite falling numbers of believers, is already under pressure after voting narrowly last November to maintain a ban on women becoming bishops.
The church said the House of Bishops, one of its most senior bodies, had ended an 18-month moratorium on the appointment of gays in civil partnerships as bishops.
The decision was made in late December but received little attention until the church confirmed it on Friday.
Gay clergy in civil partnerships would be eligible for the episcopate - the position of bishop - if they make the pledge to remain celibate, as is already the case for gay deacons and priests.
"The House has confirmed that clergy in civil partnerships, and living in accordance with the teaching of the Church on human sexuality, can be considered as candidates for the episcopate," the Bishop of Norwich Graham James said.
"The House believed it would be unjust to exclude from consideration for the episcopate anyone seeking to live fully in conformity with the Church's teaching on sexual ethics or other areas of personal life and discipline," he added in a statement on behalf of the House of Bishops.
The church teaches that couples can only have sex within marriage, and that marriage can only be between a man and a woman.
CONSERVATIVE OUTCRY
Britain legalised civil partnerships in 2005, forcing the church to consider how to treat clergy living in same-sex unions.
The church ruled that a civil partnership was not a bar to a clerical position, provided the clergy remained celibate, but failed to specifically address the issue of when the appointment was of a bishop.
In July 2011 the church launched a review to deal with this omission, at the same time imposing the moratorium on nominating gays in such partnerships as bishops while the study was conducted.
The review came a year after a gay cleric living in a civil partnership was reportedly blocked from becoming a bishop in south London.
It was the second setback for the cleric, Jeffrey John, who would already have become a bishop in 2003 but was forced to withdraw from the nomination after an outcry from church conservatives.
Rod Thomas, chairman of the conservative evangelical group Reform, said the church's move on gay bishops would provoke further dispute.
"It will be much more divisive than what we have seen over women bishops. If you thought that was a furore, wait to see what will happen the first time a bishop in a civil partnership is appointed," he told BBC television.

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Christmas updates to shine light on UK retail prospects

LONDON (Reuters) - The prospects for consumer spending and the broader British economy will be in focus next week when a host of retailers, including Marks & Spencer and Tesco, report Christmas sales figures.
Many store groups found the going tough last year as consumers fretted over job security and a squeeze on incomes.
With wage rises failing to match inflation and another round of government spending cuts slated for 2013, retailers were expected to strike a downbeat tone on the outlook and say growth will be reliant on internal initiatives.
While grocers traditionally cope better in tough times thanks to their focus on essential goods, they are finding growth hard to come by even as they expand their offering into homewares and other non-food offerings.
Analysts think No. 4 grocer Wm Morrison Supermarkets will, on Monday, post the worst of the Christmas figures out of the food retailers reporting next week.
Sales at Morrison stores open over a year, excluding fuel, were seen down about 2 percent. That would follow a fiscal third-quarter fall of 2.1 percent and partly reflect the lack of an online presence and minimal convenience store presence.
Indeed, the retail sector's best Christmas performers - all helped by a strong online presence - may have reported already.
John Lewis - Britain's biggest department store group, and sister company Waitrose - an upmarket grocer, have both reported record Christmas sales, while clothing retailer Next posted a solid outcome and raised profit guidance.
MARKET LEADER
For retail market leader Tesco, which updates on Thursday, analysts forecast like-for-like sales, excluding fuel and VAT sales tax, to grow 0.5-1.5 percent in its home market, having fallen 0.6 percent in its third quarter.
That said, Tesco is up against a weak comparative - a dismal Christmas performance in 2011 resulted in its first profit warning in 20 years and a move to spend 1 billion pounds ($1.6 billion) on a recovery plan.
While the world's No. 3 retailer may show some progress in its home market, its overseas problems are mounting. Though the group has flagged an exit from the United States, in South Korea - its biggest overseas market, legislation allowing local governments to impose shorter trading hours is hurting. Also, trade in eastern Europe is being hit by euro zone instability.
Sainsbury, Britain's No. 3 grocer, has guided to second-half like-for-like sales growth similar to the 1.7 percent in its first half. For its third-quarter update, expected Wednesday, analysts forecast like-for-like growth of about 0.9 percent.
DISCIPLINED
Though pre-Christmas promotional activity among clothing groups was widespread it appears to have been less severe than in 2011.
"Anecdotally, it was hugely more disciplined than last year," Simon Wolfson, chief executive of Next - Britain's second-biggest clothing retailer, told Reuters on Thursday.
That should bode well for margins at Marks & Spencer, Britain's largest clothing retailer, which updates on Thursday.
Analysts expected M&S to report a 1.5 percent drop in fiscal third-quarter general merchandise sales from British stores open at least a year. That would be a small improvement on a second-quarter decline of 1.8 percent.
However, like-for-like food sales were seen up 0.5 percent, less than the 1.5 percent rise in the previous period.

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Wall Street set for higher open after jobs report

NEW YORK (Reuters) - Wall Street was set for a higher open on Friday after a key U.S. jobs report showed the pace of hiring by employers had eased sightly in December but gave signals of some momentum in the labor market's recovery since the 2007-09 recession.
Though the data showed lackluster economic growth was unable to make a dent in the still-high U.S. unemployment rate, it calmed fears about the possibility of the U.S. Federal Reserve ending its highly stimulative monetary policy.
Concerns about the endurance of the Fed's stimulus program prompted investors to pull back from the market Thursday after a two-day rally.
"When it comes to Fed policy, this report should keep policy steady. There was talk of a scaling back of (Quantitative Easing) yesterday, but this number is a snapshot and is basically where it was when the Fed decided to do more QE last month," said Tom Porcelli, chief U.S. economist at RBC Capital markets in New York.
According to the Labor Department, payrolls outside the farming sector grew 155,000 last month, as expected and slightly below the level for November. Gains in employment were distributed broadly throughout the economy, from manufacturing and construction to health care.
Minutes from the Fed's December policy meeting, released Thursday, showed Fed officials were increasingly worried about the risks of asset purchases on financial markets, though they looked set to continue with the open-ended stimulus program for now.
Some policymakers thought asset buying should be slowed or stopped before the end of 2013 while others highlighted the need for further stimulus. The Fed's policy of easy credit has helped push the S&P 500 to a 13.4 percent gain in 2012. Ending that policy would remove an incentive for investors to purchase riskier assets like stocks.
S&P 500 futures added 3.4 points and were slightly higher than fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 15 points, while Nasdaq 100 futures added 4.25 points.
Pharmaceuticals maker Eli Lilly and Co. said on Friday it expects 2013 earnings to increase to $3.75 to $3.90 per share excluding items from $3.30 to $3.40 per share in 2012.
Walgreen is set to report December same-store sales, a day after several major U.S. retailers beat expectations of modest sales increases in December as shoppers wrapped up holiday buying.
Mosaic Co reported that its quarterly operating profit fell 30 percent as international distributors delayed buying potash and phosphate to avert the price risk associated with the fertilizer producer's negotiations with China and India.
Japan's Nikkei share average climbed nearly 3 percent to a 22-month high on its first trading day of 2013 on Friday, as a deal in Washington to avert fiscal disaster buoyed investor risk appetite and the weaker yen lifted exporters such as Toyota Motor Corp . Japan's markets were closed Thursday for a holiday.

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Stocks inch higher following jobs report

NEW YORK (AP) — Stocks are mostly edging higher on Wall Street in early trading after the U.S. government reported that hiring held up last month.
The Dow Jones industrial average rose 11 points to 13,403 shortly after the opening bell Friday. The Standard & Poor's 500 index rose two to 1,461 and the Nasdaq fell a point to 3,099.
The Labor Department said U.S. employers added 155,000 jobs in December. It also said hiring was stronger in November than first thought. The unemployment rate held steady at 7.8 percent.
Accuray plunged 23 percent to $5.21 after the radiation oncology equipment company reported weak sales and said it would cut 13 percent of its staff.
Yoga apparel maker Lululemon dropped 5 percent to $71.10 after Credit Suisse predicted slowing momentum and downgraded its stock.

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Sensex edges up to two-year high on oil, earnings

MUMBAI (Reuters) - The BSE Sensex edged higher on Friday to touch two-year high, posting its strongest weekly performance since the end of November, as oil companies such as ONGC rose on hopes a proposed change in the government's pricing formula would boost gas prices.
Software services exporters such as Tata Consultancy Services also rose on expectations upcoming October-December earnings results would beat expectations and that the sector would guide for an improved outlook in 2013.
Infosys will kick off earnings on January 11, at a time when results are gaining particular relevance given some analysts worry about potential complacency after strong gains in 2012 have continued into the new year.
India VIX <.nifvix>, also considered by some investors as a fear gauge, is just 2.5 percent away from its all-time lowest close.
"We have already seen advance tax numbers, so in the near term one has to see how the earnings season pans out," Kaushik Dani, fund manager at Peerless Mutual Fund, said.
"One has to remain stock specific on how the numbers shape up for the quarter," Dani said.
The benchmark BSE index rose 0.1 percent, or 19.30 points, to end at 19,784.08, marking a fourth consecutive session of gains.
The index rose 1.74 percent for the week, its strongest weekly performance since the end of November.
The broader NSE index rose 0.11 percent, or 6.65 points, to end at 6,016.15, closing above the psychologically important 6,000 level for a second day. It rose 1.8 percent for the week.
Shares in upstream oil and gas companies rallied on hopes that the pricing formula recommended by a government-appointed panel that looked into oil and gas exploration contracts would be approved by the government.
The proposed changes would sharply raise the prices of domestic natural gas, analysts said.
Oil and Natural Gas Corporation shares gained 1.8 percent, while Oil India rose 2 percent.
Reliance Industries Ltd rose 0.13 percent, gaining less than its peers after the market regulator rejected its request to settle a long-pending dispute over the 2007 sale of stock futures in a unit.
State-owned oil companies gained on expectations India could soon announce a potential gradual hike in diesel prices, after a government official last month was quoted in local media saying a proposal was being considered.
Among refiners, Indian Oil Corp rose 3.5 percent, Hindustan Petroleum Corp gained 5.3 percent and Bharat Petroleum Corp ended 2.12 percent higher.
Expectations of better-than-expected quarterly earnings lifted technology stocks.
Tata Consultancy Services Ltd rose 1.45 percent, while Wipro Ltd ended up 1.5 percent higher.
Infosys, which kicks off earnings on Friday, rose 0.5 percent. The company denied a newspaper report it was planning to fire up to 5,000 poorly performing workers was "wrong", although it encourages "chronic underperformers" to leave as part of its routine staff management.
IFCI shares gained 11.4 percent after the government restructured the board of the project finance provider according to a stock filing, sparking hopes of a turnaround in operations.
However, Tata Steel ended 1.9 percent lower while Jindal Steel and Power fell 1.8 percent on profit taking, after gaining on the back of a rise in international metal prices after the end of the US "fiscal cliff" issue.

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