Chemical Weapons Showdown With Syria Led to Rare Accord


Muzaffar Salman/Reuters


The violence in Syria continued on Monday. Above, Syrians went to the aid of a man who was wounded when a missile hit the al-Mashhad district of Aleppo.







WASHINGTON — In the last days of November, Israel’s top military commanders called the Pentagon to discuss troubling intelligence that was showing up on satellite imagery: Syrian troops appeared to be mixing chemicals at two storage sites, probably the deadly nerve gas sarin, and filling dozens of 500-pounds bombs that could be loaded on airplanes.




Within hours President Obama was notified, and the alarm grew over the weekend, as the munitions were loaded onto vehicles near Syrian air bases. In briefings, administration officials were told that if Syria’s increasingly desperate president, Bashar al-Assad, ordered the weapons to be used, they could be airborne in less than two hours — too fast for the United States to act, in all likelihood.


What followed next, officials said, was a remarkable show of international cooperation over a civil war in which the United States, Arab states, Russia and China have almost never agreed on a common course of action.


The combination of a public warning by Mr. Obama and more sharply worded private messages sent to the Syrian leader and his military commanders through Russia and others, including Iraq, Turkey and possibly Jordan, stopped the chemical mixing and the bomb preparation. A week later Defense Secretary Leon E. Panetta said the worst fears were over — for the time being.


But concern remains that Mr. Assad could now use the weapons produced that week at any moment. American and European officials say that while a crisis was averted in that week from late November to early December, they are by no means resting easy.


“I think the Russians understood this is the one thing that could get us to intervene in the war,” one senior defense official said last week. “What Assad understood, and whether that understanding changes if he gets cornered in the next few months, that’s anyone’s guess.”


While chemical weapons are technically considered a “weapon of mass destruction” — along with biological and nuclear weapons — in fact they are hard to use and hard to deliver. Whether an attack is effective can depend on the winds and the terrain. Sometimes attacks are hard to detect, even after the fact. Syrian forces could employ them in a village or a neighborhood, some officials say, and it would take time for the outside world to know.


But the scare a month ago has renewed debate about whether the West should help the Syrian opposition destroy Mr. Assad’s air force, which he would need to deliver those 500-pound bombs.


The chemical munitions are still in storage areas that are near or on Syrian air bases, ready for deployment on short notice, officials said.


The Obama administration and other governments have said little in public about the chemical weapons movements, in part because of concern about compromising sources of intelligence about the activities of Mr. Assad’s forces. This account is based on interviews with more than half a dozen military, intelligence and diplomatic officials, all of whom spoke on the condition of anonymity because of the intelligence matters involved.


The head of Germany’s foreign intelligence service, the BND, warned in a confidential assessment last month that the weapons could now be deployed four to six hours after orders were issued, and that Mr. Assad had a special adviser at his side who oversaw control of the weapons, the German newsmagazine Der Spiegel reported. Some American and other allied officials, however, said in interviews that the sarin-laden bombs could be loaded on planes and airborne in less than two hours.


“Let’s just say right now, it would be a relatively easy thing to load this quickly onto aircraft,” said one Western diplomat.


How the United States and Israel, along with Arab states, would respond remains a mystery. American and allied officials have talked vaguely of having developed “contingency plans” in case they decided to intervene in an effort to neutralize the chemical weapons, a task that the Pentagon estimates would require upward of 75,000 troops. But there have been no evident signs of preparations for any such effort.


The United States military has quietly sent a task force of more than 150 planners and other specialists to Jordan to help the armed forces there, among other things, prepare for the possibility that Syria will lose control of its chemical weapons.


Israel’s prime minister, Benjamin Netanyahu, was reported to have traveled to Jordan in recent weeks, and the Israeli news media have said the topic of discussion was how to deal with Syrian weapons if it appeared that they could be transferred to Lebanon, where Hezbollah could lob them over the border to Israel. But the plans, to the extent they exist, remain secret.


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Disney joins JAKKS, LA billionaire to bring toys to life






LOS ANGELES (Reuters) – Walt Disney toys are sold around the world. Now, children can find them in the cloud as well.


The media giant is teaming up with toy company JAKKS Pacific and Patrick Soon-Shiong, Los Angeles’ wealthiest person, on a new line of toys – with a nifty technological twist designed to link the goodies that kids lug home from the store with Disney’s stable of well-known animated characters.






DreamPlay“, developed by Soon-Shiong’s NantWorks company, and JAKKS works via an app that can be downloaded on Apple Inc devices like the iPad, or smartphones and tablets running Google Inc Android software. When a device’s camera is trained on any toy specifically designed to work with DreamPlay, it triggers one of thousands of preset animations that appear on the device’s screen and seem to be unfolding in the real world.


With viewers’ eyes locked on the tablet or smartphone screen, fairies appear to glide in and out of buildings, animated critters start playing musical instruments, mythical characters prance on a toy piano’s keyboard.


Disney, which licensed its characters to DreamPlay, and its partners hope that children will take to the new approach, which is intended to extend and expand the life of the toy. But it remains to be seen if the concept will prove to be more than a novelty, and be able to arrest a child’s infamously short attention span.


The three will demo their concept on Tuesday at the Consumer Electronics Show in Las Vegas, but Reuters got a sneak peak at the technology on Monday.


In a showroom in the 20th floor of a Santa Monica, Calif. building, visitors to JAKKS’ demonstration are treated to an animated version of Sebastian – the red Jamaican crab from Disney’s “Little Mermaid” movie – who pops up onscreen on an iPad seconds after the tablet’s camera is trained on a real-life set of toy bongo drums.


The animated crab pounces on the drums and proceeds to bang out a calypso song onscreen, with both Sebastian and the physical drum set appearing together as if the two shared the same cartoon.


REAL, VIRTUAL INTERACTION


DreamPlay allows not just Sebastian, but also Tinker Bell and a host of other well-loved Disney characters to “interact” virtually with specially made toys via image-recognition software. The software was developed by Soon-Shiong, a former cancer surgeon who created drugs to fight diabetes and breast cancer and then sold the companies that produced them for $ 8.6 billion.


Soon-Shiong teamed with JAKKS, a $ 678 million-a-year toy maker and licensee of toys based on the Princess line of dolls, Marvel action figures and other Disney toys, among others.


The technology works via the “cloud” – images and video clips stored on remote servers that are streamed to kids’ mobiles when the app recognizes a particular item.


“It’s a tremendous way to combine great technology and Disney’s magical story telling to extend the time a child can play with a toy,” said Bob Chapek, president of Disney’s consumer products unit. “Kids find out that playing with their toy doesn’t end when they get it home.”


Since taking over in 2011, Chapek has repositioned Disney’s consumer product unit to expand its use of technology with its toys. DreamPlay is the first of what Chapek says are other products that will twin technology with familiar Disney toys, although he won’t name them.


Down the road, Disney may explore new business models, including selling subscriptions to content created specifically to be used with a particular toy, said Chapek.


The market is hardly certain for a product that requires a child to hold up a phone or tablet, and peer through it to play with a toy that’s stationary. Will children want to see Rapunzel endlessly dancing on the keys of a piano or Rosetta, a fairy from Disney’s “Tinker Bell” movies, fly in and out of a cottage?


“The technology may be great, but no one has proven to me yet that a kid will sit in front of an iPhone or iPad instead of playing with a toy that’s right in front of him,” said Sean McGowan, a toy analyst with Needham & Co who downgraded JAKKS to hold in September along with other toy companies, and then downgraded JAKKS to underperform in October.


JAKKS intends to begin selling DreamPlay versions of toys from the Disney Princess line in October. It will then expand its offerings next year, with international sales starting in 2014, said Stephen Berman, JAKKS President and CEO.


DreamPlay toys will be “a couple of dollars” costlier than the regular version, he says.


Target stores and Toys R Us are among the U.S. retailers who will carry the DreamPlay line, Berman says. Top-Toy, the giant Nordic retailer, has also signed on, while Beijing Hualian Group, which operates supermarkets and department stores across China, is coming onboard as well.


“Kids don’t own iPhones or iPads but they all know how to use them,” says Berman. “Kids have so much more imagination than we do. Imagine recording a bunch of the videos and giving the kid an iPad to play with them on a trip to see the grandparents.”


JAKKS will ramp up marketing for the DreamPlay line, said Berman. DreamPlay toys will be prominently displayed at all the partner-retailers, he added, and shoppers will be encouraged to use their smartphones to view them.


Those that aim smartphones at a boxed Tinker Bell, for instance, may get a start as the fairy from “Peter Pan” literally soars out of the box, leaving an empty package behind.


“Technology can help people live better, work better, play better,” said Soon-Shiong as he showed off the line of toys. “This is the way they will play better.”


(Reporting By Ronald Grover; Edited By Edwin Chan)


Tech News Headlines – Yahoo! News





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Larry Hagman's J.R. Ewing Will Be Honored with Dallas Funeral Episode















01/08/2013 at 10:15 AM EST







Patrick Duffy and Larry Hagman


Ramey


The late Larry Hagman will not be forgotten when Dallas returns to television on Jan. 28.

Hagman, who shot to fame as the show's star patriarch oil baron, J.R. Ewing, will be honored in upcoming episodes this season, including a funeral, set for the series' March 11 episode, EW.com reports.

The actor passed away on Nov. 23 at 81 from cancer, forcing the show's producers to make significant changes to the storyline, even as they mourned the show's longtime villain who was also a great friend. Extra scenes with J.R. that had previously been cut were put back in for episode 6, said executive producer Cynthia Cidre, who had to explain to viewers as she wrote future episodes why the key character was absent.

The tribute show will include many faces from the original Dallas series, which premiered in 1978, Cidre said. "It will be funny and appropriate to J.R., but it will also be sad because his family loved him," she said. "As do the fans."

His castmates continue to remember him and the indelible mark he left on the show over the decades. Patrick Duffy, who plays J.R.'s brother Bobby, said he and costar Linda Gray hold hands often on set for support and to remember their friend fondly.

"I'll reach over and just hold her hand for a while. As she will for me," Duffy told EW.com. "We just sit and smile and think, 'Gosh, that guy was our friend for 35 years. How lucky are we?'"

Hagman, a Texas native who had been married to his wife Maj Axelsson since 1954, will remain on the production's call sheets for the rest of the year as tribute. His Airstream trailer will also remain on set with a sign that says: "No. 1 is on hold."

Duffy said all of it was fitting: "This is the house that Hagman built."

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Report: Death rates from cancer still inching down


WASHINGTON (AP) — Death rates from cancer are continuing to inch down, researchers reported Monday.


Now the question is how to hold onto those gains, and do even better, even as the population gets older and fatter, both risks for developing cancer.


"There has been clear progress," said Dr. Otis Brawley of the American Cancer Society, which compiled the annual cancer report with government and cancer advocacy groups.


But bad diets, lack of physical activity and obesity together wield "incredible forces against this decline in mortality," Brawley said. He warned that over the next decade, that trio could surpass tobacco as the leading cause of cancer in the U.S.


Overall, deaths from cancer began slowly dropping in the 1990s, and Monday's report shows the trend holding. Among men, cancer death rates dropped by 1.8 percent a year between 2000 and 2009, and by 1.4 percent a year among women. The drops are thanks mostly to gains against some of the leading types — lung, colorectal, breast and prostate cancers — because of treatment advances and better screening.


The news isn't all good. Deaths still are rising for certain cancer types including liver, pancreatic and, among men, melanoma, the most serious kind of skin cancer.


Preventing cancer is better than treating it, but when it comes to new cases of cancer, the picture is more complicated.


Cancer incidence is dropping slightly among men, by just over half a percent a year, said the report published by the Journal of the National Cancer Institute. Prostate, lung and colorectal cancers all saw declines.


But for women, earlier drops have leveled off, the report found. That may be due in part to breast cancer. There were decreases in new breast cancer cases about a decade ago, as many women quit using hormone therapy after menopause. Since then, overall breast cancer incidence has plateaued, and rates have increased among black women.


Another problem area: Oral and anal cancers caused by HPV, the sexually transmitted human papillomavirus, are on the rise among both genders. HPV is better known for causing cervical cancer, and a protective vaccine is available. Government figures show just 32 percent of teen girls have received all three doses, fewer than in Canada, Britain and Australia. The vaccine was recommended for U.S. boys about a year ago.


Among children, overall cancer death rates are dropping by 1.8 percent a year, but incidence is continuing to increase by just over half a percent a year. Brawley said it's not clear why.


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Wall Street dips as earnings season begins

NEW YORK (Reuters) - Stocks were little changed at the open on Tuesday as an earnings season expected to show sluggish corporate growth gets under way.


Profits in the fourth quarter are seen above the previous quarter's lackluster results, but analysts' current estimates are down sharply from where they were in October. Quarterly earnings are expected to grow by 2.8 percent, according to Thomson Reuters data.


If earnings growth appears to be "less bad" than expected that would translate into a near-term uptick in the market, according to Eric Wiegand, senior portfolio manager at U.S. Bank Wealth Management in New York.


"But I think there's still ample areas for concern," he said, listing policy worries in Washington and uneven economic activity as a result of Superstorm Sandy during last quarter.


The Dow Jones industrial average <.dji> fell 40.65 points, or 0.30 percent, to 13,343.64. The S&P 500 <.spx> lost 4.28 points, or 0.29 percent, to 1,457.61. The Nasdaq Composite Index <.ixic> dropped 5.04 points, or 0.16 percent, to 3,093.78.


German data showed industrial orders fell more than forecast in November due to a sharp drop in demand from abroad, reinforcing concerns that Europe's largest economy may have contracted in the fourth quarter of 2012.


Monsanto Co shares rose 3.2 percent to $99.05 after hitting a more than four-year high at $99.99. The world's largest seed company raised its earnings outlook for fiscal 2013 and posted strong first-quarter results.


Education provider Apollo Group and Dow component Alcoa Inc , the largest U.S. aluminum producer, round out the start of earnings season after the closing bell.


Shares of restaurant-chain operator Yum Brands Inc fell 4.6 percent to $64.78 a day after the KFC parent warned sales in China, its largest market, shrank more than expected in the fourth quarter.


London-traded Vodafone shares rose almost 2 percent after its partner in U.S. joint venture Verizon Wireless said it would be "feasible" to buy out the British group. U.S.-traded Vodafone stock fell 1.5 percent.


Sears Holdings shares fell 1.4 percent to $42.31 a day after the company said its chief executive will step down for family health reasons. The U.S. retailer also reported a 1.8 percent decline in quarter-to-date sales at stores open at least a year.


GameStop shares fell 7.1 percent to $23 after it reported sales for the holiday season and cut its guidance.


(Reporting by Rodrigo Campos; Editing by Nick Zieminski)



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Supporters Back Strike at Newspaper in China


James Pomfret/Reuters


Demonstrators gathered outside the headquarters of Southern Weekly newspaper Monday in Guangzhou, China.







BEIJING — Hundreds of people gathered outside the headquarters of a newspaper office in southern China on Monday to show their support for journalists who had declared a strike to protest what they called overbearing censorship by provincial propaganda officials.




The journalists, who work for Southern Weekend, a relatively liberal newspaper that has come under increasing pressure from officials in recent years, also received support on the Internet from celebrities and well-known commentators.


“Hoping for a spring in this harsh winter,” Li Bingbing, an actress, said to her 19 million followers on a microblog account. Yao Chen, an actress with more than 31 million followers, cited a quotation by Aleksandr Solzhenitsyn, the Russian Nobel laureate and dissident: “One word of truth outweighs the whole world.”


Many of the people who showed up Monday at the newspaper offices in Guangzhou, the capital of Guangdong Province, carried banners with slogans and white and yellow chrysanthemums, a flower that symbolizes mourning. One banner read: “Get rid of censorship. The Chinese people want freedom.” Police officers watched the protesters without immediately taking any harsh actions.


The angry journalists at Southern Weekend have been calling for the removal of Tuo Zhen, the top propaganda official in Guangdong, whom the journalists blame for overseeing a change in a New Year’s editorial that ran last week and was supposed to have called for greater respect for rights enshrined in the constitution under the headline “China’s Dream, the Dream of Constitutionalism,” according to the China Media Project at the University of Hong Kong. The editorial went through layers of changes and ultimately became one praising the current political system, in which the Communist Party exercises authority over all aspects of governance.


A well-known entrepreneur, Hung Huang, said on her microblog that the actions of a local official had “destroyed, overnight, all the credibility the country’s top leadership had labored to re-establish since the 18th Party Congress,” the November gathering in Beijing that was the climax of the leadership transition.


One journalist for Southern Weekend said Monday afternoon that negotiations between the various parties had been scheduled later in the day, but there were no results from any talks as of Monday evening.


It was unclear how many employees in the newsroom had heeded the calls for a strike. It appeared Sunday that many of Southern Weekend’s reporters had declared themselves on strike. A local journalist who went by the newspaper’s Beijing office on Monday said the building appeared to be open but quiet. One employee told the journalist that the people there were not on strike. Dozens of supporters showed up outside the building at various times, some carrying signs and flowers.


The conflict was exacerbated Sunday night by top editors at the newspaper, who posted a message on the publication’s official microblog saying that the New Year’s editorial had been written with the consent of editors at the newspaper.


According to an account from a newspaper employee posted online on Monday, that statement was made after pressure was exerted on the top editors by Yang Jian, the head of the party committee at Southern Media, the parent company that runs Southern Weekend and other publications. Southern Weekend’s editor in chief, Huang Can, then pressured an employee to give up the official microblog password so the statement could be posted on the microblog.


Neither Mr. Yang nor Mr. Huang could be reached for comment Monday.


Some political analysts have said the conflict raises questions about whether the central government, led by Xi Jinping, the new party chief, will support the idea of a more open media by moving to support the protesting journalists. In his first trip outside Beijing, Mr. Xi traveled to Guangdong and praised the market-oriented economic policies put in place by Deng Xiaoping, the former supreme leader. But more recently, Mr. Xi has said that China must respect its socialist roots.


Resolving the Southern Weekend tensions could also be a test for Hu Chunhua, the new party chief in Guangdong and a potential candidate to succeed Mr. Xi as the leader of China in a decade. Mr. Hu’s predecessor, Wang Yang, was regarded by many Western political analysts as being a “reformer,” but he presided over a tightening of media freedoms in the province and specifically over Southern Media.


On Monday, People’s Daily, the party’s mouthpiece, ran a signed commentary that referred to a recent meeting of propaganda officials in Beijing and said propaganda officials should “follow the rhythm of the times” and help the authorities establish a “pragmatic and open-minded image.” Some people have interpreted that as support for officials in adopting a more enlightened approach in dealing with the news media.


But Global Times, a populist newspaper, ran a scathing editorial that said Southern Weekend was merely a newspaper and should not challenge the system.


“Even in the West, mainstream media would not choose to openly pick a fight with the government,” the editorial said. Xinhua, the state news agency, published the editorial online.


Jonathan Ansfield contributed reporting. Mia Li and Shi Da and contributed research.



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Kuwaiti journalist jailed for Twitter ‘insults’






KUWAIT CITY (AP) — A Kuwait newspaper says an online journalist has been sentenced to two years in prison for posts deemed “insulting” to the Gulf nation’s ruler — the second such ruling this week.


The decision reflects a widening social media crackdown across the Gulf Arab states to quell perceived political dissent.






Kuwait’s pro-government Al Watan newspaper reported Monday that Ayyad al-Harbi, a journalist at news website Sabr, was charged with posting Twitter messages considered offensive to the nation’s Western-allied emir. No other details were given.


Kuwait, which hosts thousands of U.S. troops, has been gripped by months of political unrest led by anti-government groups, including Islamist factions.


On Sunday, Kuwaiti media said a social media activist also has received a two-year prison term for Twitter posts that allegedly insulted the emir.


Social Media News Headlines – Yahoo! News





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Bethenny Frankel Steps Out After Filing For Divorce















01/07/2013 at 10:50 AM EST



It's business as usual for Bethenny Frankel.

After filing for divorce from husband Jason Hoppy a few days earlier, the Skinnygirl mogul took her beloved dog, Cookie, for a walk in New York's Tribeca neighborhood on Sunday.

Bundled up in a down jacket and boots, Frankel, 42, shielded her face with sunglasses as she strolled down the street with her pup trailing behind her.

Frankel first announced the couple's separation via a statement on Dec. 23. "It brings me great sadness to say that Jason and I are separating. This was an extremely difficult decision that as a woman and a mother, I have to accept as the best choice for our family," she said at the time.

The couple – who married after a whirlwind courtship and surprise pregnancy in 2010 – are parents to Bryn, 2½.

While Frankel and Hoppy's relationship played out in front of the cameras on Bethenny Getting Married and Bethenny Ever After, last year Frankel took time off from her life in the spotlight to focus on her marriage.

"Bethenny is devastated," a friend of Frankel's told PEOPLE earlier this month.

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Your medical chart could include exercise minutes


CHICAGO (AP) — Roll up a sleeve for the blood pressure cuff. Stick out a wrist for the pulse-taking. Lift your tongue for the thermometer. Report how many minutes you are active or getting exercise.


Wait, what?


If the last item isn't part of the usual drill at your doctor's office, a movement is afoot to change that. One recent national survey indicated only a third of Americans said their doctors asked about or prescribed physical activity.


Kaiser Permanente, one of the nation's largest nonprofit health insurance plans, made a big push a few years ago to get its southern California doctors to ask patients about exercise. Since then, Kaiser has expanded the program across California and to several other states. Now almost 9 million patients are asked at every visit, and some other medical systems are doing it, too.


Here's how it works: During any routine check of vital signs, a nurse or medical assistant asks how many days a week the patient exercises and for how long. The number of minutes per week is posted along with other vitals at the top the medical chart. So it's among the first things the doctor sees.


"All we ask our physicians to do is to make a comment on it, like, 'Hey, good job,' or 'I noticed today that your blood pressure is too high and you're not doing any exercise. There's a connection there. We really need to start you walking 30 minutes a day,'" said Dr. Robert Sallis, a Kaiser family doctor. He hatched the vital sign idea as part of a larger initiative by doctors groups.


He said Kaiser doctors generally prescribe exercise first, instead of medication, and for many patients who follow through that's often all it takes.


It's a challenge to make progress. A study looking at the first year of Kaiser's effort showed more than a third of patients said they never exercise.


Sallis said some patients may not be aware that research shows physical inactivity is riskier than high blood pressure, obesity and other health risks people know they should avoid. As recently as November a government-led study concluded that people who routinely exercise live longer than others, even if they're overweight.


Zendi Solano, who works for Kaiser as a research assistant in Pasadena, Calif., says she always knew exercise was a good thing. But until about a year ago, when her Kaiser doctor started routinely measuring it, she "really didn't take it seriously."


She was obese, and in a family of diabetics, had elevated blood sugar. She sometimes did push-ups and other strength training but not anything very sustained or strenuous.


Solano, 34, decided to take up running and after a couple of months she was doing three miles. Then she began training for a half marathon — and ran that 13-mile race in May in less than three hours. She formed a running club with co-workers and now runs several miles a week. She also started eating smaller portions and buying more fruits and vegetables.


She is still overweight but has lost 30 pounds and her blood sugar is normal.


Her doctor praised the improvement at her last physical in June and Solano says the routine exercise checks are "a great reminder."


Kaiser began the program about three years ago after 2008 government guidelines recommended at least 2 1/2 hours of moderately vigorous exercise each week. That includes brisk walking, cycling, lawn-mowing — anything that gets you breathing a little harder than normal for at least 10 minutes at a time.


A recently published study of nearly 2 million people in Kaiser's southern California network found that less than a third met physical activity guidelines during the program's first year ending in March 2011. That's worse than results from national studies. But promoters of the vital signs effort think Kaiser's numbers are more realistic because people are more likely to tell their own doctors the truth.


Dr. Elizabeth Joy of Salt Lake City has created a nearly identical program and she expects 300 physicians in her Intermountain Healthcare network to be involved early this year.


"There are some real opportunities there to kind of shift patients' expectations about the value of physical activity on health," Joy said.


NorthShore University HealthSystem in Chicago's northern suburbs plans to start an exercise vital sign program this month, eventually involving about 200 primary care doctors.


Dr. Carrie Jaworski, a NorthShore family and sports medicine specialist, already asks patients about exercise. She said some of her diabetic patients have been able to cut back on their medicines after getting active.


Dr. William Dietz, an obesity expert who retired last year from the Centers for Disease Control and Prevention, said measuring a patient's exercise regardless of method is essential, but that "naming it as a vital sign kind of elevates it."


Figuring out how to get people to be more active is the important next step, he said, and could have a big effect in reducing medical costs.


___


Online:


Exercise: http://1.usa.gov/b6AkMa


___


AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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Wall Street falls after five-year high, earnings in focus

NEW YORK (Reuters) - Stocks fell on Monday as traders cashed in recent gains that lifted the S&P 500 to a five-year high on Friday and awaited Tuesday's start of the fourth-quarter earnings season.


Last week was the best for U.S. stocks in more than a year as a budget deal and economic data boosted investor confidence.


Investors will likely turn their attention to the fourth-quarter earnings season that kicks off this week. Earnings are expected to be only slightly better than the third-quarter's lackluster results and analysts' current estimates are down sharply from what they were in October.


"We have a cautious market entering fourth-quarter earnings season," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York. "I think it's going to be a disappointing one this time around."


Financial shares will be in focus a day after global regulators known as the Basel Committee gave banks four more years and greater flexibility to build up cash buffers, scaling back moves that aimed to help prevent another financial crisis.


"Basel giving banks four more years to get their act together will be good" for stocks, Cardillo said.


Bank of America shares rose 0.5 percent to $12.17 after hitting their highest since May 2011 as it reached a settlement with Fannie Mae worth roughly $11.6 billion to resolve agency mortgage repurchase claims.


The bank also entered into agreements with Nationstar Mortgage Holdings and Walter Investment Management to sell about $306 billion of residential mortgage servicing rights.


Nationstar rose 16.8 percent to $38.80 and Walter Investment added 7 percent to $47.13.


The Dow Jones industrial average <.dji> fell 63.59 points, or 0.47 percent, to 13,371.62. The S&P 500 <.spx> dropped 6.53 points, or 0.45 percent, to 1,459.94. The Nasdaq Composite <.ixic> lost 12.56 points, or 0.41 percent, to 3,089.09.


Walt Disney Co started an internal cost cutting review several weeks ago that may include layoffs at its studio and other units, three people with knowledge of the effort told Reuters. Disney shares fell 1.4 percent to $51.46.


Video-streaming service Netflix Inc shares gained 4 percent to $99.78 after it said it will carry previous seasons of some popular shows produced by Time Warner's Warner Bros Television.


Amazon.com shares hit their highest price ever at $269.22 after Morgan Stanley raised its rating on the stock. Shares were up 3.6 percent at $268.50.


Roche's chairman was quoted as saying the Swiss pharmaceutical group is no longer considering a bid for the U.S. gene-sequencing company Illumina . Illumina shares were off 8 percent at $50.20.


Major U.S. technology companies could miss estimates for fourth-quarter earnings as budget worries likely led some corporate clients to tighten their belts last month.


(Reporting by Rodrigo Campos; Editing by Kenneth Barry)



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