Wall Street Week Ahead: Earnings, money flows to push stocks higher

NEW YORK (Reuters) - With earnings momentum on the rise, the S&P 500 seems to have few hurdles ahead as it continues to power higher, its all-time high a not-so-distant goal.


The U.S. equity benchmark closed the week at a fresh five-year high on strong housing and labor market data and a string of earnings that beat lowered expectations.


Sector indexes in transportation <.djt>, banks <.bkx> and housing <.hgx> this week hit historic or multiyear highs as well.


Michael Yoshikami, chief executive at Destination Wealth Management in Walnut Creek, California, said the key earnings to watch for next week will come from cyclical companies. United Technologies reports on Wednesday while Honeywell is due to report Friday.


"Those kind of numbers will tell you the trajectory the economy is taking," Yoshikami said.


Major technology companies also report next week, but the bar for the sector has been lowered even further.


Chipmakers like Advanced Micro Devices , which is due Tuesday, are expected to underperform as PC sales shrink. AMD shares fell more than 10 percent Friday after disappointing results from its larger competitor, Intel . Still, a chipmaker sector index <.sox> posted its highest weekly close since last April.


Following a recent underperformance, an upside surprise from Apple on Wednesday could trigger a return to the stock from many investors who had abandoned ship.


Other major companies reporting next week include Google , IBM , Johnson & Johnson and DuPont on Tuesday, Microsoft and 3M on Thursday and Procter & Gamble on Friday.


CASH POURING IN, HOUSING DATA COULD HELP


Perhaps the strongest support for equities will come from the flow of cash from fixed income funds to stocks.


The recent piling into stock funds -- $11.3 billion in the past two weeks, the most since 2000 -- indicates a riskier approach to investing from retail investors looking for yield.


"From a yield perspective, a lot of stocks still yield a great deal of money and so it is very easy to see why money is pouring into the stock market," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.


"You are just not going to see people put a lot of money to work in a 10-year Treasury that yields 1.8 percent."


Housing stocks <.hgx>, already at a 5-1/2 year high, could get a further bump next week as investors eye data expected to support the market's perception that housing is the sluggish U.S. economy's bright spot.


Home resales are expected to have risen 0.6 percent in December, data is expected to show on Tuesday. Pending home sales contracts, which lead actual sales by a month or two, hit a 2-1/2 year high in November.


The new home sales report on Friday is expected to show a 2.1 percent increase.


The federal debt ceiling negotiations, a nagging worry for investors, seemed to be stuck on the back burner after House Republicans signaled they might support a short-term extension.


Equity markets, which tumbled in 2011 after the last round of talks pushed the United States close to a default, seem not to care much this time around.


The CBOE volatility index <.vix>, a gauge of market anxiety, closed Friday at its lowest since April 2007.


"I think the market is getting somewhat desensitized from political drama given, this seems to be happening over and over," said Destination Wealth Management's Yoshikami.


"It's something to keep in mind, but I don't think it's what you want to base your investing decisions on."


(Reporting by Rodrigo Campos, additional reporting by Chuck Mikolajczak and Caroline Valetkevitch; Editing by Kenneth Barry)



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Djokovic holds off Wawrinka; Sharapova advances


MELBOURNE, Australia (AP) — Novak Djokovic held off a valiant Swiss player for a 5-hour, five-set victory Sunday night, extending his winning streak to 18 matches at the Australian Open and then ripping off his shirt to celebrate.


The big surprise: It was a fourth-round match against Stanislas Wawrinka of Switzerland, not a final against Roger Federer.


Djokovic edged the 15th-seeded Wawrinka 1-6, 7-5, 6-4, 6-7 (5), 12-10 in a momentum-swinging marathon, cashing in on his third match point to reach the quarterfinals for a 15th consecutive major tournament.


The style was reminiscent of his 5-hour, 53-minute final win here last year against Rafael Nadal.


"He deserved equally to be a winner of this match," said Djokovic, who is aiming to be the first man in the Open era to win three consecutive Australian titles. "I give him a lot of credit. He has all my respect. He was the aggressive player on the court. I was just hanging in there trying to fight."


Djokovic had beaten Wawrinka — the perennial No. 2 among Swiss tennis players to 17-time major winner Federer — in their 10 previous matches. He hadn't lost a head-to-head since 2006 and had won 11 straight sets between them.


The win "brings back the memories from 12 months ago with Rafa," he said. "We are midway through the tournament but it feels like a final to me."


Djokovic next faces Tomas Berdych, the 2010 Wimbledon finalist who advanced with a 6-3, 6-2, 7-6 (13) win over South Africa's Kevin Anderson.


Wawrinka was cramping and needed massages on both legs in the fifth set. He was so tired he decided not to challenge a decision on a call that went against him — wrongly, according to TV replays.


But he didn't think it made a difference in the end.


"In five sets, five hours, you always have some opportunity to win a set or to win the match," he said. "If you don't take it, he's going to take it.


"It's by far my best match I ever play, especially in five sets against the No. 1 player ... full house. At the end I was really, really close. For sure I'm really sad. ... But I think there is more positive than negative."


Fourth-seeded David Ferrer won 6-2, 6-1, 6-4 over No. 16 Kei Nishikori of Japan to set up an all-Spanish quarterfinal against Nicolas Almagro, who was leading 6-2, 5-1 when No. 8 Janko Tipsaveric retired from their fourth-round match.


Maria Sharapova has had almost no trouble on the women's side, beating Kirsten Flipkens of Belgium 6-1, 6-0 earlier Sunday to continue a dominant and unparalleled run in Melbourne.


The late-finishing men's match almost changed the complexion of the tournament.


Critics who questioned if anybody could challenge Djokovic, Federer and U.S. Open champion Andy Murray in the absence of Nadal at this tournament got an answer quickly.


Wawrinka stunned the top-ranked Djokovic with three service breaks in the first set and led 5-2 in the second before the 25-year-old Serb rallied by winning six consecutive games. But just as Djokovic seemed to be taking control of the match, Wawrinka launched his own comeback to win a long tiebreaker and force a fifth set.


Djokovic got to serve first in the fifth, giving him a psychological edge as long as he held his serve. In the end, Wawrinka didn't quite have the big-time experience.


Wawrinka had game point in the 22nd game but let Djokovic get on a roll. He saved his first match point with a service winner, then saved another.


At 1:40 a.m. local time, Wawrinka was whacking his head with the racket and biting the ball after giving Djokovic another match point. Moments later, he was slumped on the court.


Djokovic raised both arms, walked to the net and embraced his beaten rival, then pulled of his shirt and flexed — shades of the 2012 final.


The second-ranked Sharapova has lost only five games in four matches on the way to the quarterfinals, an Australian Open record that seems immaterial to the 25-year-old Russian.


"Well, I'm certainly happy to be playing this well but ... it only gets tougher from here," said Sharapova, who is playing her first tournament of 2013 after withdrawing from a warm-up event at Brisbane because of an injured right collarbone.


Steffi Graf conceded only eight games in her opening four matches here in 1989, when she won the second of her three straight Australian Open titles. Monica Seles matched that mark.


Sharapova has been even more dominant. She started with a pair of 6-0, 6-0 wins — the first time that has happened at a major tournament since 1985 — and then beat seven-time Grand Slam winner Venus Williams 6-1, 6-3 in the third round.


Sharapova next plays fellow Russian Ekaterina Makarova, who ousted fifth-seeded Angelique Kerber 7-5, 6-4. Sharapova beat Makarova in the quarterfinals here last year before losing the final to Victoria Azarenka.


Li Na, who reached the final here in 2011 and won the French Open later that year, saved a set point in the tiebreaker before beating Julia Goerges 7-6 (6), 6-1. She'll next play No. 4 Agnieszka Radwanska, who beat No. 13 Ana Ivanovic 6-2, 6-4 for her 13th consecutive win. Radwanska won the Auckland and Sydney titles before coming to Melbourne.


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Happy Birthday, Buzz Aldrin! Apollo 11 Moonwalker Is 83 Today






Famed space man Buzz Aldrin, the second person ever to walk on the moon, is celebrating his 83rd birthday today (Jan. 20) in cosmic style.


Aldrin, who along with Apollo 11 astronaut Neil Armstrong boldly walked where no one had before in 1969, is marking his birthday on the road with a trip to England.






“I’m heading home today if the UK weather allows,” Aldrin wrote in a post on Twitter today, where he writes as @TheRealBuzz.


This month, Aldrin helped launch the AXE Space Academy, a private spaceflight competition that aims to launch 22 people on suborbital spaceflights as part a deal with the space tourism company Space Expedition Curacao and XCOR Aerospace, which is building the Lynx space plane  to be used on the flights.


“Space travel for everyone is the next frontier in the human experience,” Aldrin said during the project’s launch this month.


But Buzz Aldrin is likely most well-known for his role on NASA’s Apollo 11 mission, which made the first manned moon landing on July 20, 1969, when and Armstrong landed on the moon and performed the first moonwalk. Aldrin served as lunar module pilot for the Apollo 11 mission, with Armstrong commanded the mission. Astronaut Michael Collins, meanwhile, served as command module pilot and remained in orbit around the moon during the landing. Armstrong died at age 82 last year.


Aldrin is a retired colonel in the U.S. Air Force and flew combat missions in Korea before joining NASA’s astronaut corps in 1963 as one of the space agency’s third group of astronauts. He was born Edwin Aldrin (“Buzz” was originally a nickname) in Montclair, N.J., and earned a Ph.D. in astronautics from the Massachusetts Institute of Technology. [Photos of Buzz Aldrin at NASA]


Aldrin’s fist space mission, Gemini 12, launched on Nov. 11, 1966, sending him and astronaut James Lovell on a four-day mission to test spacewalk methods, among other goals. It was the final mission of NASA’s Gemini program, allowing the space agency to proceed with the Apollo missions that ultimately sent Aldrin to the moon.


Aldrin, Armstrong and Collins launched their Apollo 11 mission on July 16, 1969. Aldrin and Armstrong spent two hours and 15 minutes walking on the lunar surface during their time on the moon. The Apollo 11 crew returned to Earth on July 24, 1969. Five more successful moon landing missions would follow.


Aldrin left NASA in 1971 and retired from the Air Force a year later. Altogether, he logged 289 hours and 53 minutes in space.


Since then, Aldrin has used his moonwalker fame to lobby for continued space exploration, specifically a return to the moon and missions to Mars. He has written several books, including two autobiographies, and made several notable television appearances, with stints on “Dancing with the Stars,” “Top Chef,” “The Colbert Report” and “Big Bang Theory.”


Earlier this year, Aldrin settled his divorce from his wife Lois Driggs Cannon after 23 years of marriage, citing “irreconcilable differences.”


You can follow SPACE.com Managing Editor Tariq Malik on Twitter @tariqjmalikFollow SPACE.com for the latest in space science and exploration news on Twitter @Spacedotcom and on Facebook.


Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Obama's speech: Learn from Lincoln






STORY HIGHLIGHTS


  • Julian Zelizer: Second term inaugural addresses are always a challenge

  • He says the public has had four years to make a judgment about the president

  • Obama can learn from second term speeches of Lincoln, Wilson, FDR

  • Zelizer says they did a good job of unifying America and sketching vision of the future




Editor's note: Julian Zelizer is a professor of history and public affairs at Princeton University. He is the author of "Jimmy Carter" and of "Governing America."


(CNN) -- The second inaugural address is always more difficult than the first. When a president-elect first steps onto the national stage, he still enjoys a certain degree of innocence and hope. Americans are waiting to see if the new president will be different. When a new president delivers his speech, voters don't yet have a record that might make them cynical.


But by the second term, voters are familiar, and often tired, with the occupant of the White House. Even though they liked him more than his opponents, the president has usually been through some pretty tough battles and his limitations have been exposed. It becomes much harder to deliver big promises, when the people watching have a much clearer sense of your limitations and of the strength of your opponents.



Julian Zelizer

Julian Zelizer



So President Barack Obama faces a big test when he appears before the nation Monday.


Opinion: Presidents shouldn't swear in on a Bible


Obama now is Washington, and no longer someone who will be able to shake up the way Washington works. Voters believe that Congress is dysfunctional and have little confidence that legislators will respond to his proposals.


Overseas, the instability and violence in the Middle East has shaken the confidence of many Americans that Obama can achieve the kind of transformative change he promised back in 2009.



Obama, who is a student of history, can look back at some past second inaugural addresses if he wants guidance. Three of the best of these addresses offer a roadmap.


Abraham Lincoln, March 4, 1865: The strongest was from Lincoln, who gave his talk amid the brutality of the Civil War but chose to stress the theme of healing and unity, Lincoln gave a masterful performance that offered inspiration and encouragement for the reunification of the nation. Lincoln famously said: "With malice toward none, with charity for all, with firmness in the right as God gives us to see the right, let us strive on to finish the work we are in, to bind up the nation's wounds, to care for him who shall have borne the battle and for his widow and his orphan, to do all which may achieve and cherish a just and lasting peace among ourselves and with all nations." Rather than boasting of military victory or threatening Southern forces, he stepped outside the battle to offer the nation, as a whole, the path forward.










Woodrow Wilson, March 5, 1917: Although Wilson had run on a campaign to keep America out of world war, he was aware that such intervention was inevitable. During his second inaugural address, Wilson took the opportunity to start preparing the nation for what was about to come. He told America to think about the global responsibilities it had to accept, even if much of the nation was not prepared to do so. "We are provincials no longer," he said, "The tragic events of the thirty months of vital turmoil which we have just passed have made us citizens of the world. There can be no turning back."


Opinion: Why 'Hail to the Chief' remains unsung


Franklin Roosevelt, January 20, 1937: Roosevelt gave a rousing performance that outlined the fundamental vision which shaped the wide array of policies he had put forward in his first term. While many people had criticized FDR for lacking any ideology and for being a pragmatist without principle, in his second address he explained the rationale behind his actions: "I see millions denied education, recreation, and the opportunity to better their lot and the lot of their children. I see one-third of a nation ill-housed, ill-clad, ill-nourished." For Democrats, the speech remains a powerful defense of government and the rationale behind his program.


To replicate some of this success, Obama will need to figure out how to inspire a nation that is frustrated by the gridlock of Washington and the laggard state of the economy and worried about instability overseas.


Obama can learn from all three of these presidents.


Like Wilson, he can talk to Americans about goals they should aspire to achieve, ways in which the country can accept new obligations in a changing world.


Like Lincoln, he can urge the nation to move beyond the discord and division that has characterized political debate in the past four years.


Finally, like Roosevelt, he can use his speech to provide some of the justification and outlook that has shaped his policies. This would undercut the ability of Republicans to define his policies for him, as has been the case for much of his first term, and motivate supporters who have often felt that Obama remained too much of a mystery.



Follow @CNNOpinion on Twitter.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Julian Zelizer.






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787 Dreamliner: NTSB rules out one cause in Boston incident










TOKYO/WASHINGTON (Reuters) - The U.S. National Transportation Safety Board on Sunday ruled out excess voltage as the cause of a battery fire last month on a Boeing Co 787 Dreamliner jet operated by Japan Airlines Co (JAL) and widened its investigation to include the Arizona-based manufacturer of the battery's charger.

Last week, governments across the world grounded the Dreamliner while Boeing halted deliveries after a problem with a lithium-ion battery on a second 787 plane, flown by All Nippon Airways Co (ANA), forced the aircraft to make an emergency landing in western Japan.






"Examination of the flight recorder data from the JAL B-787 airplane indicates that the APU (auxiliary power unit) battery did not exceed its designed voltage of 32 volts," the NTSB said in a statement forwarded by a Boeing Japan representative.

On Friday, a Japanese safety official told reporters that excessive electricity may have overheated the battery in the ANA-owned Dreamliner that was forced to make the emergency landing at Japan's Takamatsu airport last week.

U.S. investigators have examined the lithium-ion battery that powered the APU, where the battery fire started in the JAL plane, as well as several other components removed from the airplane, including wire bundles and battery management circuit boards, the NTSB statement said.

On Tuesday, the NTSB said U.S. investigators will convene in Arizona to test and examine the charger for the battery, and download non-volatile memory from the APU controller, while other components have been sent for download or examination to Boeing's Seattle facility and manufacturer facilities in Japan.

Securaplane Technologies Inc, a unit of Britain's Meggitt Plc, on Sunday confirmed that it makes the charger for lithium-ion batteries used on the 787, and said it will fully support the U.S. investigation.

Shubhayu Chakraborty, president of Securaplane, declined to comment on the NTSB's planned visit, but said his company would support the investigation.

"At this time we are not really involved in the investigation. If and when we get involved, we will support it fully," he told Reuters.

Securaplane is making a lithium-ion battery system for the KC-390 military transport plane being built by Brazil's Embraer, which is due to have its first plane in 2014.

The company is also developing backup batteries for the Embraer 450/500 business jet and will make the lithium battery for the next-generation Eurocopter EC-135 helicopter being developed by EADS, according to the company's website.

Japan's GS Yuasa Corp makes lithium-ion batteries for the Dreamliner, while France's Thales produces the control systems for the battery.

In its statement, the NTSB said French authorities were also participating in the investigation.

Japan Transport Safety Board said it was aware of the NTSB report and would consider the U.S. statement in its probe.

The NTSB said the Japanese agency was participating in its investigation of the Boston incident, while NTSB officials were helping the agency with its investigation of the emergency landing in Japan. Both investigations were ongoing.

"There's nothing more I can add at this point as we still haven't started our investigation into the battery here," JTSB inspector Hideyo Kosugi told Reuters.

"The NTSB's investigation started earlier. We still haven't taken X-rays or CT-scans of the battery. In our case, both the battery and the surrounding systems are still stored in (Tokyo's) Haneda (Airport) as the third party organization where the Japanese investigation would take place still has not been chosen."

Boeing said on Friday it would continue building the carbon-composite 787, but put deliveries on hold until the U.S. Federal Aviation Administration approves and implements a plan to ensure the safety of potentially flammable lithium-ion batteries.

In Washington, the top U.S. transportation official Ray LaHood said the 787, which has a list price of $207 million, would not fly until regulators were "1,000 percent sure" it was safe.

Japan is the biggest market so far for the 787, with ANA and JAL operating 24 of the 290-seat wide-bodied planes. Boeing has orders for almost 850 of the planes.

(Additional reporting by Kentaro Sugiyama, Yoshiyuki Osada and Yuka Obayashi in Japan and Andrea Shalal-Esa in Washington; Editing by Daniel Magnowski and Maureen Bavdek)

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Veteran jihadist claims bloody Algeria siege for al Qaeda


ALGIERS/IN AMENAS, Algeria (Reuters) - A veteran Islamist fighter claimed responsibility on behalf of al Qaeda for the Algerian hostage crisis, a regional website reported on Sunday, tying the bloody desert siege to France's intervention across the Sahara in Mali.


Algeria said it expected to raise its preliminary death tolls of 23 hostages and 32 militants killed in the four-day siege at a gas plant deep in the Sahara.


Western governments whose citizens died nevertheless held back from criticizing tactics used by their ally in the struggle with Islamists across the vast desert.


"We in al Qaeda announce this blessed operation," Mokhtar Belmokhtar said in a video, according to the Sahara Media website, which quoted from the recording but did not immediately show it.


"We are ready to negotiate with the West and the Algerian government provided they stop their bombing of Mali's Muslims," said Belmokhtar, a one-eyed veteran guerrilla who fought in Afghanistan in 1980s and in Algeria's civil war in the 1990s.


Belmokhtar's fighters launched their attack on the In Amenas gas plant before dawn on Wednesday, just five days after French warplanes began strikes to halt advances by Islamists in neighboring northern Mali.


European and U.S. officials say the raid was almost certainly too elaborate to have been planned in so short a time, although the French campaign could have been one trigger for fighters to launch an assault they had already prepared.


"We had around 40 jihadists, most of them from Muslim countries and some even from the West," Sahara Media quoted Belmokhtar as saying. Algerian officials say Belmokhtar's group was behind the attack but he was not present himself.


Some Western governments have expressed frustration at not being informed in advance of the Algerian authorities' plans to storm the complex. However, Britain and France both defended the Algerian action in public.


"It's easy to say that this or that should have been done. The Algerian authorities took a decision and the toll is very high but I am a bit bothered ... when the impression is given that the Algerians are open to question. They had to deal with terrorists," French Foreign Minister Laurent Fabius said.


British Prime Minister David Cameron said in a televised statement: "Of course people will ask questions about the Algerian response to these events, but I would just say that the responsibility for these deaths lies squarely with the terrorists who launched this vicious and cowardly attack."


"We should recognize all that the Algerians have done to work with us and to help and coordinate with us. I'd like to thank them for that. We should also recognize that the Algerians too have seen lives lost among their soldiers."


OIL VULNERABILITIES EXPOSED


The Islamists' assault has tested Algeria's relations with the outside world, exposed the vulnerability of multinational oil operations in the Sahara and pushed Islamist radicalism in northern Africa to centre stage.


Algeria, scarred by the civil war with Islamist insurgents in the 1990s which claimed 200,000 lives, has insisted there would be no negotiation in the face of terrorism.


France especially needs close cooperation from Algeria to have a chance of crushing Islamist rebels in northern Mali. Algiers has promised to shut its porous 1,000-km border with Mali to prevent al Qaeda-linked insurgents simply melting away into its empty desert expanses and rugged mountains.


Algeria's permission for France to use its airspace, confirmed by Fabius last week, also makes it much easier to establish direct supply lines for its troops which are trying to stop the Islamist rebels from taking the whole of Mali.


Algeria's Interior Ministry had reported on Saturday that 23 hostages and 32 militants were killed during the assaults launched by Algerian special forces to end the crisis, with 107 foreign hostages and 685 Algerian hostages freed.


Minister of Communication Mohamed Said said the toll would rise when final numbers were issued in the next few hours: "I am afraid unfortunately to say that the death toll will go up," Said was quoted as saying by the official APS news agency.


Private Algerian television station Ennahar said on Sunday that 25 bodies had been discovered at the Tiguentourine plant, adding that the operation to clear the base would last 48 hours.


The bodies were believed to belong to hostages executed by the militants, said Ennahar TV, which is known to have good sources within Algerian security.


With so much still unknown about the fates of foreigners held at the sites, countries that have faced casualties have yet to issue full counts of the dead. The plant was run jointly by Britain's BP and Norway's Statoil with the Algerian state oil company. A Japanese engineering firm and a French catering company also operated there.


In London, Cameron said three British nationals were confirmed killed and another three plus a British resident were also believed to be dead. One American has been confirmed killed. Statoil says five Norwegians are missing. Japanese and French citizens are also among those missing or presumed dead.


MULTINATIONAL HOSTAGE-TAKERS


Said reported that the militants had six different nationalities and the operation to clear the plant of mines laid by the hostage-takers was still under way.


Believed to be among the 32 dead militants was their leader, Abdul Rahman al-Nigeri, a Nigerien close to Belmokhtar.


Mauritanian news agencies identified the field commander of the group that attacked the plant as Nigeri, a fighter from one of the Arab tribes in Niger who had joined the Algerian Salafist Group for Preaching and Combat (GSPC) in early-2005.


That group eventually joined up with al Qaeda to become Al Qaeda in the Islamic Maghreb (AQIM). It and allied groups are the targets of the French military operation in Mali.


The apparent ease with which the fighters swooped in from the dunes to take control of an important energy facility, which produces some 10 percent of the natural gas on which Algeria depends for its export income, has raised questions over the country's outwardly tough security measures.


Algerian officials said the attackers may have had inside help from among the hundreds of Algerians employed at the site.


Security in the half-dozen countries around the Sahara desert has long been a preoccupation of the West. Smugglers and militants have earned millions in ransom from kidnappings.


The most powerful Islamist groups operating in the Sahara were severely weakened by Algeria's secularist military in the civil war in the 1990s. But in the past two years the regional wing of al Qaeda gained fighters and arms as a result of the civil war in Libya, when arsenals were looted from Muammar Gaddafi's army.


(Additional reporting by Balazs Koranyi in Oslo, Estelle Shirbon and David Alexander in London, Brian Love in Paris, Daniel Flynn in Dakar; Writing by David Stamp; Editing by Peter Graff)



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Wall Street Week Ahead: Earnings, money flows to push stocks higher

NEW YORK (Reuters) - With earnings momentum on the rise, the S&P 500 seems to have few hurdles ahead as it continues to power higher, its all-time high a not-so-distant goal.


The U.S. equity benchmark closed the week at a fresh five-year high on strong housing and labor market data and a string of earnings that beat lowered expectations.


Sector indexes in transportation <.djt>, banks <.bkx> and housing <.hgx> this week hit historic or multiyear highs as well.


Michael Yoshikami, chief executive at Destination Wealth Management in Walnut Creek, California, said the key earnings to watch for next week will come from cyclical companies. United Technologies reports on Wednesday while Honeywell is due to report Friday.


"Those kind of numbers will tell you the trajectory the economy is taking," Yoshikami said.


Major technology companies also report next week, but the bar for the sector has been lowered even further.


Chipmakers like Advanced Micro Devices , which is due Tuesday, are expected to underperform as PC sales shrink. AMD shares fell more than 10 percent Friday after disappointing results from its larger competitor, Intel . Still, a chipmaker sector index <.sox> posted its highest weekly close since last April.


Following a recent underperformance, an upside surprise from Apple on Wednesday could trigger a return to the stock from many investors who had abandoned ship.


Other major companies reporting next week include Google , IBM , Johnson & Johnson and DuPont on Tuesday, Microsoft and 3M on Thursday and Procter & Gamble on Friday.


CASH POURING IN, HOUSING DATA COULD HELP


Perhaps the strongest support for equities will come from the flow of cash from fixed income funds to stocks.


The recent piling into stock funds -- $11.3 billion in the past two weeks, the most since 2000 -- indicates a riskier approach to investing from retail investors looking for yield.


"From a yield perspective, a lot of stocks still yield a great deal of money and so it is very easy to see why money is pouring into the stock market," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.


"You are just not going to see people put a lot of money to work in a 10-year Treasury that yields 1.8 percent."


Housing stocks <.hgx>, already at a 5-1/2 year high, could get a further bump next week as investors eye data expected to support the market's perception that housing is the sluggish U.S. economy's bright spot.


Home resales are expected to have risen 0.6 percent in December, data is expected to show on Tuesday. Pending home sales contracts, which lead actual sales by a month or two, hit a 2-1/2 year high in November.


The new home sales report on Friday is expected to show a 2.1 percent increase.


The federal debt ceiling negotiations, a nagging worry for investors, seemed to be stuck on the back burner after House Republicans signaled they might support a short-term extension.


Equity markets, which tumbled in 2011 after the last round of talks pushed the United States close to a default, seem not to care much this time around.


The CBOE volatility index <.vix>, a gauge of market anxiety, closed Friday at its lowest since April 2007.


"I think the market is getting somewhat desensitized from political drama given, this seems to be happening over and over," said Destination Wealth Management's Yoshikami.


"It's something to keep in mind, but I don't think it's what you want to base your investing decisions on."


(Reporting by Rodrigo Campos, additional reporting by Chuck Mikolajczak and Caroline Valetkevitch; Editing by Kenneth Barry)



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Record 73 early entries for NFL draft


NEW YORK (AP) — A record 73 underclassmen, including six first-team All-Americans, were approved for the NFL draft on Saturday.


That number was eight more than last year.


The six All-Americans were safety Matt Elam of Florida, tight end Zach Ertz of Stanford, tackle Luke Joeckel of Texas A&M, defensive end Bjoern Werner of Florida State, linebacker Jarvis Jones of Georgia and cornerback Dee Milliner of national champion Alabama.


Only Elam is not projected as a high first-round pick, but all six easily could go in the opening round on April 25.


Several scouts and NFL personnel directors believe Joeckel, Werner, Jones and Milliner could go in the top 10.


NFL draft consultant Gil Brandt, the former general manager of the Cowboys, has Joeckel and Werner as his top two prospects.


Also approved was former LSU cornerback-kick returner Tyrann Mathieu, a 2011 All-American. Mathieu, a one-time Heisman Trophy finalist, was dismissed from the team in August after reportedly failing a drug test.


Louisiana State lost a whopping 11 players, including Mathieu. Next were Florida State, Tennessee and Florida, each with four. Michigan State, Stanford, Georgia and Oklahoma each lost three players.


Alabama saw Milliner and running back Eddie Lacy enter the draft.


In all, 38 schools lost players early.


Also leaving school and projected to go high in the draft: LSU DEs Barkevious Mingo and Sam Montgomery; Texas A&M DE Damontre Moore; Georgia LB Alec Ogletree; California WR Keenan Allen; Florida State CB Xavier Rhodes; Ohio State DT Johnathan Hankins; and LSU linebacker Kevin Minter.


Other All-Americans entering early were second-teamers Moore, Hankins, Minter, WR Stedman Bailey of West Virginia, safeties Tony Jefferson of Oklahoma and Eric Reid of LSU. Third-teamers were Montgomery, RBs Giovani Bernard of North Carolina and Stefphon Jefferson of Nevada, WR DeAndre Hopkins of Clemson, and DT Sharif Floyd of Florida.


Only one quarterback, Tyler Bray of Tennessee, applied early for the NFL.


In the last 10 years, the number of early entrants has risen from 43 to 73.


A player must have been eligible to play in college for three years before he can enter the draft. He must petition the NFL in writing and renounce his college eligibility.


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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Amazing NASA Sun Photos Outshine Ultra HDTVs






A NASA spacecraft that constantly stares at the sun for signs of solar storms snaps images and videos so detailed that even the latest ultra-high-definition televisions can’t keep up.


The spacecraft, called the Solar Dynamics Observatory, is responsible for some of the most amazing photos of solar flares and other sun weather events. Its instruments record images at a whopping resolution of 4,096 by 4,096 pixels, more than four times the resolution an average HD television.






SDO sun images are even recorded in higher definition than the newly released “Ultra-HD TV” machines unveiled at the 2013 Consumer Electronics Showcase earlier this month. While Ultra-HD TVs have about four times the resolution of an average HD TV, the SDO photos are still twice as large as an Ultra-HD screen, NASA officials said in a statement.


“Such detailed pictures show features on the sun that are as small as 200 miles across, helping researchers observe such things as what causes giant eruptions on the sun known as coronal mass ejections (CME) that can travel toward Earth and interfere with our satellites,” they explained.


While features 200 miles (322 kilometers) across sound large, the sun itself is 864,938 miles (1.3 million km) in diameter.


NASA’s SDO mission launched in February 2010 to record unprecedented views of the sun, solar flares and other space weather events. As of December 2012, the spacecraft had captured more than 100 million images of the sun, about the equivalent of eight hours of TV programming a day for four months, mission managers said.


The SDO spacecraft is one of several space observatories keeping a constant watch on the sun. NASA’s twin Stereo spacecraft and the NASA/ESA SOHO spacecraft also provide daily views of the Earth’s closest star.


Follow Miriam Kramer on Twitter @mirikramer or SPACE.com @Spacedotcom. We’re also on Facebook & Google+


Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Space and Astronomy News Headlines – Yahoo! News





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Why Africa backs French in Mali





























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STORY HIGHLIGHTS


  • French intervention in Mali could be turning point in relationship with Africa, writes Lansana Gberie

  • France's meddling to bolster puppet regimes in the past has outraged Africans, he argues

  • He says few in Africa would label the French action in Mali as 'neo-colonial mission creep'

  • Lansana: 'Africa's weakness has been exposed by the might of a foreign power'




Editor's note: Dr. Lansana Gberie is a specialist on African peace and security issues. He is the author of "A Dirty War in West Africa: The RUF and the Destruction of Sierra Leone." He is from Sierra Leone and lives in New York.


(CNN) -- Operation Serval, France's swift military intervention to roll back advances made by Jihadist elements who had hijacked a separatist movement in northern Mali, could be a turning point in the ex-colonialist's relationship with Africa.


It is not, after all, every day that you hear a senior official of the African Union (AU) refer to a former European colonial power in Africa as "a brotherly nation," as Ambroise Niyonsaba, the African Union's special representative in Ivory Coast, described France on 14 January, while hailing the European nation's military strikes in Mali.


France's persistent meddling to bolster puppet regimes or unseat inconvenient ones was often the cause of much outrage among African leaders and intellectuals. But by robustly taking on the Islamist forces that for many months now have imposed a regime of terror in northern Mali, France is doing exactly what African governments would like to have done.



Lansana Gberie

Lansana Gberie



This is because the Movement for Unity and Jihad in West Africa (MUJAO), Ansar Dine and al Qaeda in the Islamic Maghreb (AQIM) are a far greater threat to many African states than they ever would be to France or Europe.


See also: What's behind Mali instability?


Moreover, the main underlying issues that led to this situation -- the separatist rebellion by Mali's Tuareg, under the banner of the National Movement for the Liberation of Azawad (MNLA), who seized the northern half of the country and declared it independent of Mali shortly after a most ill-timed military coup on 22 March 2012 -- is anathema to the African Union and the Economic Community of West African States (ECOWAS).


Successful separatism by an ethnic minority, it is believed, would only encourage the emergence of more separatist movements in a continent where many of the countries were cobbled together from disparate groups by Europeans not so long ago.










But the foreign Islamists who had been allies to the Tuaregs at the start of their rebellion had effectively sidelined the MNLA by July last year, and have since been exercising tomcatting powers over the peasants in the area, to whom the puritanical brand of Islam being promoted by the Islamists is alien.


ECOWAS, which is dominated by Nigeria -- formerly France's chief hegemonic foe in West Africa -- in August last year submitted a note verbale with a "strategic concept" to the U.N. Security Council, detailing plans for an intervention force to defeat the Islamists in Mali and reunify the country.


ECOWAS wanted the U.N. to bankroll the operation, which would include the deployment a 3,245-strong force -- to which Nigeria (694), Togo (581), Niger (541) and Senegal (350) would be the biggest contributors -- at a cost of $410 million a year. The note stated that the objective of the Islamists in northern Mali was to "create a safe haven" in that country from which to coordinate "continental terrorist networks, including AQIM, MUJAO, Boko Haram [in Nigeria] and Al-Shabaab [in Somalia]."


Despite compelling evidence of the threat the Islamists pose to international peace and security, the U.N. has not been able to agree on funding what essentially would be a military offensive. U.N. Security Council resolution 2085, passed on 20 December last year, only agreed to a voluntary contribution and the setting up of a trust fund, and requested the secretary-general "develop and refine options within 30 days" in this regard. The deadline should be 20 January.


See also: Six reasons events in Mali matter


It is partly because of this U.N. inaction that few in Africa would label the French action in Mali as another neo-colonial mission creep.


If the Islamists had been allowed to capture the very strategic town of Sevaré, as they seemed intent on doing, they would have captured the only airstrip in Mali (apart from the airport in Bamako) capable of handling heavy cargo planes, and they would have been poised to attack the more populated south of the country.



Africa's weakness has, once again, been exposed by the might of a foreign power.
Lansana Gberie



Those Africans who would be critical of the French are probably stunned to embarrassment: Africa's weakness has, once again, been exposed by the might of a foreign power.


Watch video: French troops welcomed in Mali


Africans, however, can perhaps take consolation in the fact that the current situation in Mali was partially created by the NATO action in Libya in 2010, which France spearheaded. A large number of the well-armed Islamists and Tuareg separatists had fought in the forces of former Libyan leader Moammar Gadhafi, and then left to join the MNLA in northern Mali after Gadhafi fell.


They brought with them advanced weapons, including shoulder-launched anti-aircraft missiles from Libya; and two new Jihadist terrorist groups active in northern Mali right now, Ansar Dine and MUJAO, were formed out of these forces.


Many African states had an ambivalent attitude towards Gadhafi, but few rejoiced when he was ousted and killed in the most squalid condition.


A number of African countries, Nigeria included, have started to deploy troops in Mali alongside the French, and ECOWAS has stated the objective as the complete liberation of the north from the Islamists.


The Islamists are clearly not a pushover; though they number between 2,000 and 3,000 they are battle-hardened and fanatically driven, and will likely hold on for some time to come.


The question now is: what happens after, as is almost certain, France begins to wind down its forces, leaving the African troops in Mali?


Nigeria, which almost single-handedly funded previous ECOWAS interventions (in Liberia and Sierra Leone in the 1990s, costing billions of dollars and hundreds of Nigerian troops), has been reluctant to fund such expensive missions since it became democratic.


See also: Nigerians waiting for 'African Spring'


Its civilian regimes have to be more accountable to their citizens than the military regimes of the 1990s, and Nigeria has pressing domestic challenges. Foreign military intervention is no longer popular in the country, though the links between the northern Mali Islamists and the destructive Boko Haram could be used as a strategic justification for intervention in Mali.


The funding issue, however, will become more and more urgent in the coming weeks and months, and the U.N. must find a sustainable solution beyond a call for voluntary contributions by member states.


The opinions expressed in this commentary are solely those of Lansana Gberie.






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