New push for most in US to get at least 1 HIV test

WASHINGTON (AP) — There's a new push to make testing for the AIDS virus as common as cholesterol checks.

Americans ages 15 to 64 should get an HIV test at least once — not just people considered at high risk for the virus, an independent panel that sets screening guidelines proposed Monday.

The draft guidelines from the U.S. Preventive Services Task Force are the latest recommendations that aim to make HIV screening simply a routine part of a check-up, something a doctor can order with as little fuss as a cholesterol test or a mammogram. Since 2006, the Centers for Disease Control and Prevention also has pushed for widespread, routine HIV screening.

Yet not nearly enough people have heeded that call: Of the more than 1.1 million Americans living with HIV, nearly 1 in 5 — almost 240,000 people — don't know it. Not only is their own health at risk without treatment, they could unwittingly be spreading the virus to others.

The updated guidelines will bring this long-simmering issue before doctors and their patients again — emphasizing that public health experts agree on how important it is to test even people who don't think they're at risk, because they could be.

"It allows you to say, 'This is a recommended test that we believe everybody should have. We're not singling you out in any way,'" said task force member Dr. Douglas Owens of Stanford University and the Veterans Affairs Palo Alto Health Care System.

And if finalized, the task force guidelines could extend the number of people eligible for an HIV screening without a copay in their doctor's office, as part of free preventive care under the Obama administration's health care law. Under the task force's previous guidelines, only people at increased risk for HIV — which includes gay and bisexual men and injecting drug users — were eligible for that no-copay screening.

There are a number of ways to get tested. If you're having blood drawn for other exams, the doctor can merely add HIV to the list, no extra pokes or swabs needed. Today's rapid tests can cost less than $20 and require just rubbing a swab over the gums, with results ready in as little as 20 minutes. Last summer, the government approved a do-it-yourself at-home version that's selling for about $40.

Free testing is available through various community programs around the country, including a CDC pilot program in drugstores in 24 cities and rural sites.

Monday's proposal also recommends:

—Testing people older and younger than 15-64 if they are at increased risk of HIV infection,

—People at very high risk for HIV infection should be tested at least annually.

—It's not clear how often to retest people at somewhat increased risk, but perhaps every three to five years.

—Women should be tested during each pregnancy, something the task force has long recommended.

The draft guidelines are open for public comment through Dec. 17.

Most of the 50,000 new HIV infections in the U.S. every year are among gay and bisexual men, followed by heterosexual black women.

"We are not doing as well in America with HIV testing as we would like," Dr. Jonathan Mermin, CDC's HIV prevention chief, said Monday.

The CDC recommends at least one routine test for everyone ages 13 to 64, starting two years younger than the task force recommended. That small difference aside, CDC data suggests fewer than half of adults under 65 have been tested.

"It can sometimes be awkward to ask your doctor for an HIV test," Mermin said — the reason that making it routine during any health care encounter could help.

But even though nearly three-fourths of gay and bisexual men with undiagnosed HIV had visited some sort of health provider in the previous year, 48 percent weren't tested for HIV, a recent CDC survey found. Emergency rooms are considered a good spot to catch the undiagnosed, after their illnesses and injuries have been treated, but Mermin said only about 2 percent of ER patients known to be at increased risk were tested while there.

Mermin calls that "a tragedy. It's a missed opportunity."

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Stock futures flat after two-day rally, France downgrade

NEW YORK (Reuters) - Stock index futures were little changed on Tuesday, indicating the S&P 500 index may pause after a two-day rally as a credit downgrade of France by Moody's reminded investors of the problems plaguing the global economy.


The benchmark S&P index had risen more than 2 percent in the previous two sessions, spurring by optimism a deal could be reached in the U.S. to stave off the looming "fiscal cliff," a series of tax and spending changes that will begin to take effect in the new year.


Moody's Investors Service cut France's sovereign rating by one notch to Aa1 after the market close on Monday, citing an uncertain fiscal outlook as a result of the weakening economy.


While the move was expected after a similar downgrade by peer Standard & Poor's in January, it served as a reminder of the headwinds faced by the global economy as a result of the region's debt crisis.


Also in the euro zone, finance ministers will give a tentative go-ahead for the disbursement of 44 billion euros in emergency loans to Greece on Tuesday, but the money will only be paid on December 5 if the country meets all remaining conditions.


The S&P 500 index had fallen 5.3 percent between election day and the start of the rebound as angst over the prospects of a deal gave investors reason to sell stocks broadly in an effort to limit the tax hit both this year and in 2013.


President Barack Obama and the U.S. Congress hope to start serious negotiations after this week's Thanksgiving holiday on Thursday on how to avoid the "fiscal cliff," which has politicians and economists worried about the direction of the world's largest economy.


S&P 500 futures rose 1.1 points and were roughly even with 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 rose 2 points, and Nasdaq 100 futures added 3 points.


Economic data expected on Tuesday includes housing starts and permits data for October at 8:30 a.m. (1330 GMT). Economists in a Reuters survey forecast a 840,000 annualized rate versus 872,000 in September, and a total of 865,000 permits compared with 890,000 in the prior month.


Later in the session at 12:15 p.m (1715 GMT), Federal Reserve's Chairman Ben Bernanke speaks before the Economic Club of New York, a speech that may offer a fresh chance to gauge the Fed's appetite for more monetary stimulus. Market participants currently expect the Fed to step up asset purchases in 2013 after Operation Twist expires.


Best Buy reports quarterly results, expected to show a fall in earnings per shares to $0.12 from $0.47, as the world's largest consumer electronics chain struggles to fend off online and discount rivals. Investors are awaiting word on whether founder and top shareholder Richard Schulze comes through with a formal bid to take the company private.


As earnings season draws to a close, other companies expected to post earnings Tuesday include Salesforce.com Inc , Campbell Soup Co , H.J. Heinz Co and Hewlett-Packard Co .


European shares edged lower on Tuesday, with France's CAC 40 index <.fchi> among the worst hit after ratings agency Moody's stripped the euro zone's No. 2 economy of its top credit rating. <.eu/>


Asian shares rose on hopes of a compromise in the U.S. fiscal cliff negotiations.


(Reporting by Chuck Mikolajczak Editing by W Simon)


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Palestinian Death Toll Rises as Israel Presses Onslaught





GAZA CITY — After a night of sustained Israeli strikes by air and sea and a morning of rocket attacks on Israel, the Health Ministry here said on Monday the Palestinian death toll in six days of conflict had risen to 91 with 700 wounded, including 200 children as the assault ground on unrelentingly despite efforts toward a ceasefire.




The casualties — 19 people reported killed since midnight local time — included Palestinians killed in strikes by warplanes and a drone attack on two men on a motorcycle. Another drone attack killed the driver of a taxi hired by journalists and displaying ‘Press” signs, although it was not clear which journalists hired it, Palestinian officials said. On Sunday, Israeli forces attacked two buildings housing local broadcasters and production companies used by foreign outlets, but Israeli officials denied targeting journalists.


An Israeli bomb pummeled a home deep into the ground here on Sunday, killing 11 people, including nine in three generations of a single family, in the deadliest single strike in six days of cross-border conflict. Members of the fanily were buried Monday in a rite that turned into a gesture of defiance and a rally supporting Gaza’s militant Hamas rulers. A militant leader said Tel Aviv in the Israeli heartland would be hit “over and over” and warned Israelis that their leaders were misleading them and would “take them to hell.”


The airstrikes further indicated that Israel was striking a wide range of targets. Three Israelis have been killed and at least 79 wounded by continued rocket fire into southern Israel and as far north as Tel Aviv.


Israel says its onslaught is designed to stop Hamas launching the rockets but, after an apparent lull overnight, more missiles hurtled toward targets in Israel, some of them intercepted by Israel’s Iron Dome defense system. Of five rockets fired on Monday at the southern Israeli city of Ashkelon, four were intercepted but one smashed through the concrete roof at the entrance to an empty school. There were no reports of casualties. Other rockets rained on areas along the border with Gaza. 


Later a second volley struck Ashkelon. Several rockets were intercepted but one crashed down onto a house causing damage but no casualties.


On Sunday, a new blitz of Palestinian rockets totaled nearly 100 by nightfall, including two that soared toward the population center of Tel Aviv but were knocked out of the sky by Israeli defenses.


In a statement on Monday, the Israel Defense Forces said overnight targets included “underground rocket launchers, terror tunnels, training bases, Hamas command posts and weapon storage facilities.” But news reports said the strikes flattened two houses belonging to a single family, killing two children and two adults and injuring 42 people, while a shrapnel burst from another attack killed one child and wounded others living near the rubble of the former national security compound.


The latest exchanges offered a grim backdrop to Egyptian-led cease-fire efforts that have so far proved inconclusive. United Nations Secretary General Ban Ki-moon was set to join the effort in Cairo on Monday.


Brig. Gen. Yoav Mordechai, the spokesman for the Israel Defense Forces, said there had been a reduction of up to 40 percent in rocket fire from Gaza, while Israeli forces had launched 40 attacks on tunnels between Egypt and Gaza, both at the entrances and along the road leading to them, causing considerable damage.


He said six rocket launching teams and two men on motorcycles were hit while the Israeli forces continued to intercept Palestinian radio signals to urge Gaza residents to steer clear of activists.


In the Israeli strike on Sunday morning, it took emergency workers and a Caterpillar digger more than an hour to reveal the extent of the devastation under the two-story home of Jamal Dalu, a shop owner. Mr. Dalu was at a neighbor’s when the blast wiped out nearly his entire family: His sister, wife, two daughters, daughter-in-law and four grandchildren ages 2 to 6 all perished under the rubble, along with two neighbors, an 18-year-old and his grandmother.


“We were asleep and then there was a terrific blast,” said Abdul-Latif Dahman, who lives nearby and was among more than 100 who stood vigil as the bodies were dug out. “There are no words to describe what happened later, only smoke and dust and heavy silence because the sound shut our ears.”


The smell of bomb residue and the roars of bulldozers filled the air as people clambered over shattered glass and bent iron bars to get a closer look. When two tiny bodies were finally found, rescuers and residents erupted in cries of “God is great!” One worker rushed the girl to an ambulance, while a neighbor grabbed the boy and just ran.


Ismail Haniyeh, the prime minister of the militant Hamas faction that rules Gaza, condemned the attack as a “massacre” that “exceeded all expectations.”


General Mordechai, the spokesman for the Israeli military, said it was “examining the event.”


Fares Akram and Jodi Rudoren reported from Gaza City, and Alan Cowell from London. Reporting was contributed by Isabel Kershner from Ashkelon, Israel; Ethan Bronner, Myra Noveck and Irit Pazner Garshowitz from Jerusalem; Rina Castelnuovo from Ashdod, Israel; Peter Baker from Bangkok; and David D. Kirkpatrick from Cairo.



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Peta Murgatroyd Blogs: Dancing with the Stars Elimination Left Gilles a 'Bit Devastated'






Only on People.com








11/19/2012 at 07:45 AM EST







Peta Murgatroyd and Gilles Marini


Craig Sjodin/ABC


Peta Murgatroyd is a former Dancing with the Stars champion, winning the coveted mirror-ball trophy in season 14only her second season on the serieswith Donald Driver. The Australia native blogged for PEOPLE.com about competing with Gilles Marini in the current all-star season. The pair was eliminated during Week 8. Murgatroyd has written her final post.

Elimination is always a little disappointing. Gilles [Marini] really wanted to win badly and he was a bit devastated that he got cut. But he's cool with it now. He's okay. I don't think he expected it. He worked really hard and he's the type of person who believes if you work hard, you get results. But it's not always the case with this TV show. Everyone works hard and everyone was amazing. It was such a tough competition, and I believe we were very lucky to have gotten that far.

It's just more heartbreaking because we had ideas for the next week. We were excited to get started on new things. It's just not going to happen, but we both have other things to look forward to now.

Gilles had the talent to make it to that final. He is an absolutely amazing dancer. But the show is about votes, and that's what really killed us in the end.

Gilles and I definitely bonded over this period. We've become very close friends and I'm become friendly with his wife Carole and his children. We're going to stay in touch and think about work ventures together. He's got great stuff ahead of him. He's an amazing person and I've definitely learned a few lessons from him. He's taught me a few things about life.

I love that we get different partners. You walk away from these relationships staying friends, but also learning about each other and about life. It's one of the best things about the show.

Right now I feel great. I'm a little tired from New York because I just flew in, but it was fun. I met up with a few friends when I got in, and then Gilles and I did the foxtrot together on The View. I stayed a few days extra to catch up with friends and Gilles went home. The View was fun.

I pigged out in New York. I had bagels with cream cheese, gelato and some pizza. I kind of hit all the food groups, which is something I usually don't allow myself to do. I have everything in moderation, but I really splurged over there and it felt good. I don't feel guilty about it at all. I'm going straight back to the gym.

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EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

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Stock futures gain on optimism over budget talk

NEW YORK (Reuters) - Stock index futures started off a holiday-shortened trading week in an upbeat mood on Monday, with investors encouraged by signs of progress in talks to resolve the fiscal crunch in the United States.


Leading U.S. lawmakers expressed confidence on Sunday that they could reach a deal to avert the "fiscal cliff" even as they laid down markers on taxes and spending that may make any agreement more difficult. In response, European stocks also rose from a 3 1/2-month low.


S&P 500 futures rose 7.4 points and were above 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 61 points and Nasdaq 100 futures rose 16 points.


On the macro-economic front, investors awaited data on U.S. existing home sales for October, due at 10:00 a.m. ET (1500 GMT). Economists in a Reuters survey forecast an annualized 4.75 million units, a repeat of the September total. Investors also eyed the November NAHB housing market index, also due at 10:00 a.m. ET (1500 GMT).


Networking equipment company Cisco Systems Inc said it will buy privately held cloud networking company Meraki for $1.2 billion in cash as part of its cloud and networking strategy.


General Motors Co and its local Chinese partners, intensifying competition in China in the no-frills car market, on Sunday formally opened another plant for its low-cost Baojun brand.


Wal-Mart Stores Inc is taking its first legal step to stop months of protests and rallies outside Walmart stores, targeting the union that it says is behind such actions.


Citigroup Inc has agreed to pay $360 million to the brokerage estate of Lehman Brothers to resolve a dispute over $1 billion in collateral that the investment bank was forced to post in the days leading up to its bankruptcy in 2008.


Rupert Murdoch's News Corp is expected to announce this week that it will acquire a 49 percent stake in the YES Network from the New York Yankees baseball team and its partners, in a deal that would value the sports channel at $3 billion, a person with knowledge of the talks told Reuters.


Online financial services company ETrade Financial Corp will shut down its British brokerage business as the company shifts focus back to its core U.S. operations, the Wall Street Journal reported, citing people familiar with the decision.


Hope that U.S. politicians would find common ground to steer clear of the "fiscal cliff" boosted stocks on Friday, though the gains were not enough to offset the week's losses.


(Reporting by Angela Moon; Editing by Chizu Nomiyama)


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Arms With a Long Reach Help Hamas





TEL AVIV — When Israel assassinated the top Hamas military commander in Gaza on Wednesday, setting off the current round of fierce fighting, it was aiming not just at a Palestinian leader but at a supply line of rockets from Iran that have for the first time given Hamas the ability to strike as far as Tel Aviv and Jerusalem.




The commander, Ahmed al-Jabari, had shifted Hamas’s low-grade militia into a disciplined force with sophisticated weapons like Fajr-5 rockets, which are named after the Persian word for dawn and have significantly increased the danger to Israel’s major cities. They have a range of about 45 miles and are fired by trained crews from underground launching pads.


Hamas had perhaps 100 of them until the Israeli attacks last week, which appear to have destroyed most of the stockpile. The rockets are assembled locally after being shipped from Iran to Sudan, trucked across the desert through Egypt, broken down into parts and moved through Sinai tunnels into Gaza, according to senior Israeli security officials.


The smuggling route involves salaried employees from Hamas along the way, Iranian technical experts traveling on forged passports and government approval in Sudan, Israeli officials said.


Mr. Jabari’s strategy has been so effective and alarming for Israel that it is preparing for a possible next stage in the four-day-old battle: a ground war in which its troops would seek to destroy remaining rocket launching bases and crews and munitions factories.


Under Mr. Jabari, Hamas also developed its own weapons industry in Gaza, building long-range rockets as well as drones that they hoped to fly over Israel just as Israeli drones roam the skies of Gaza, sowing fear in its population.


The current operation to eliminate the Hamas rocket launchers could serve to cripple the ability of Iran’s allies in Gaza from retaliating should Israel ever carry out its threat to attack Iranian nuclear facilities.


“Both Hamas and Islamic Jihad are building weapons with experts from Iran,” one top security official said Saturday, speaking on condition of anonymity. “What we took care of last night was their own production facility for U.A.V.’s,” he added, referring to unmanned aerial vehicles, or drones. “This was all the work of Jabari, who was a very sophisticated and strategic thinker.”


A number of recent Israeli military attacks were aimed at cutting the supply chain into Gaza. In late October, a munitions factory in Sudan was hit from the air. Israel did not acknowledge carrying out the attack, but the winks and nods of officials here make clear that it did. Israel has carried out several other such attacks on Sudan, including on convoys, in the past few years.


In addition, Mossad agents killed a Hamas official in a Dubai hotel in early 2010 because he was thought to be crucial to the Hamas supply chain of weapons and rockets into Gaza.


One official here said that until Israel ended its military occupation of Gaza in 2005, there were only primitive weapons factories there. The Hamas rockets had a flight capacity of about a mile, they could not be aimed and they flew in a wild cylindrical pattern. Hamas then built better rockets that could fly up to 12 miles.


That changed little until 2007, when Hamas fighters pushed the Fatah-dominated Palestinian Authority out of Gaza into the West Bank and took over governing the coastal strip.


“At that point, Jabari turned his neighborhood defense operation into a real army,” said a retired Israeli general whose portfolio included Gaza and who spoke on condition of anonymity. “He organized what was a militia into companies, battalions and brigades. He sent commanders to Syria and to Iran to be trained by the Revolutionary Guards. And then he built up this whole new branch to develop military technology focusing on long-range missiles.”


The collapse of the government of Col. Muammar el-Qaddafi in Libya last year created other supply options for Hamas as Libyan military storehouses were raided and the equipment sold off. Those weapons were driven across Egypt and into Gaza.


It remains to be seen whether Mr. Jabari’s death will truly cripple Hamas, or whether it will find someone equally adept to take his place, the officials said.


Either way, Hamas now has a range of rockets and weapons in its arsenal, said Jeffrey White, a former analyst with the United States Defense Intelligence Agency and now a fellow at the Washington Institute for Near East Policy.


In addition to the Fajr-5, Hamas has a few hundred of what are known as enhanced Grad rockets, which have a range of about 25 miles. The Grads are 122-millimeter rockets that have bigger warheads than the standard Grads, but their accuracy is relatively low. The Grads may also be coming from Iran, Mr. White said, but others are made in Gaza and imported from Libya.


In addition, Hamas has hundreds of standard Grads that have a range of about 12 miles, as well as thousands of homemade mortars and Qassam rockets with a range of about six miles.


Israeli officials said the movement of the Fajr-5 rockets through Egypt could not go unnoticed there, given their size. Each is 20 feet long and weighs more than 2,000 pounds — the warhead alone weighs 375 pounds — and the trucks carrying them across Egyptian bridges and through roadblocks into Sinai would be hard to miss.


In the current conflict, Israel’s antirocket system, known as Iron Dome, has been more effective than expected, but still dozens of rockets have landed.


Whether the military operation against Gaza is a dress rehearsal for any future attack on either Iran or Lebanon — where Hezbollah has thousands of rockets pointed at Israel — is a matter under debate here. Some see it as clearing away any possible trouble from Gaza. Others say that makes little sense, given the difference of scale in the conflict in Gaza and any war against Iran or Hezbollah. Hamas’s arsenal is tiny compared with what Hezbollah in Lebanon is thought to have: thousands of rockets capable of hitting Tel Aviv.


Yonatan Touval, an analyst with Prime Source, a private Tel Aviv risk-assessment company, said, “The Iron Dome system is ineffective in intercepting longer-range projectiles, such as those that would be launched from Lebanon toward the Tel Aviv area. To address this threat, Israel is currently developing the Magic Wand system, but it is not expected to become operational before 2015.”


He added that the fighting now was therefore not really a test of a future conflict involving Iran and Lebanon. “If Israel’s political leadership is treating the current operation in Gaza as something of a rehearsal for a future war with Hezbollah and Iran, it is rehearsing the wrong play,” he said.


Michael R. Gordon contributed reporting from Washington.



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Taylor Swift and One Direction's Harry Styles: Are They Dating?















11/17/2012 at 10:40 PM EST







Taylor Swift and Harry Styles


Janet Mayer/Splash News Online; Don Arnold/Wireimage


Taylor Swift appears to be taking her love life in a new direction.

The "Never Ever Getting Back Together" singer is seemingly taking her lyrics to heart as she moves on from recent ex, Conor Kennedy, and enjoys the company of One Direction hottie Harry Styles.

"I had to literally do a double-take," an onlooker tells PEOPLE of finding Styles, 18, with Swift, 22, on the set of The X Factor Thursday morning.

Styles was on hand to watch Swift rehearse the debut of "State of Grace," which she performed later that night on the Fox reality show.

"He was smiling at her while she rehearsed. When she was done he jumped up on stage, picked her up, put her over his shoulder and carried her off stage," the onlooker says. "The whole crew was really surprised."

The young singers were also spotted by X Factor host Mario Lopez, who says he was slapped on the back by Styles during Swift's rehearsal.

"I said, 'What are you doing here,' " Lopez said on his 104.3 MY FM radio show Friday. "And he sort of [pointed] toward Taylor."

Lopez went on to say he later saw the two "hand-in-hand."

A telling sign of the budding relationship may have been a look Styles shared with his bandmate Niall Horan a week earlier after Horan told PEOPLE his favorite song of 2012 was Swift's "Never Ever Getting Back Together."

When asked if he would ever date Swift, Horan gave a small laugh, looked at Styles and answered with a succinct, "no."

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EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

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Wall Street Week Ahead: Going off "cliff" with a bungee cord

NEW YORK (Reuters) - The 1987 crash. The Y2K bug. The debt ceiling debacle of 2011.


All these events, in the end, turned out to be buying opportunities for stocks. So will the "fiscal cliff," some investors say as they watch favorite stocks tumble during the political give-and-take happening in Washington.


The first round of talks aimed at avoiding the "fiscal cliff" caused a temporary rise in equities on Friday, signaling Wall Street's recent declines could be a buying opportunity. The gains were small and sentiment remains weak, but it suggests hope for market bulls.


Though shares ended moderately higher on Friday, it was not enough to offset losses for the week. The S&P was down 1.5 percent, while both the Dow and the Nasdaq fell 1.8 percent.


The S&P 500 is down more than 5 percent in the seven sessions that followed President Barack Obama's re-election. Uncertainty arose as attention turned to Washington's task of dealing with mandated tax hikes and spending cuts that could take the U.S. economy back into recession.


Some see the market's move as an overreaction to hyperbolic headlines about policy gridlock in Washington, believing stocks may start to rebound in what should be a quiet few days ahead of the Thanksgiving holiday next Thursday.


"It just doesn't seem to make any sense that you suddenly wake up the day after the election and realize we've got a fiscal cliff," said Krishna Kumar, partner at New York hedge fund Goose Hollow Alpha Advisors.


Not long ago the S&P was on target for its second-best year in the last 10, riding a 17 percent advance in 2012. That's been halved to about 8 percent, which isn't bad but disappointing compared with just a month ago.


Investors have been selling the year's winners. Apple is down 25 percent from its peak above $700. General Electric is down 14 percent; Google has lost 16 percent. Overall, the stocks that make up the top 10 percent of performers in the month prior to Election Day have been the worst performers since, according to Bespoke Investment Group of Harrison, New York.


"I think it's a good opportunity to be long stocks at these levels," said Kumar.


Hikes on capital gains and dividend taxes are on the line, and Obama has dug in his heels on what he sees as a mandate to make the tax code more progressive.


He seems to have the upper hand in dealings with Congress because Republican lawmakers don't want to see tax rates increase, which is what will happen if no solution is found by the beginning of 2013. Republicans don't want to take the blame for driving the economy over the cliff.


The current crisis is similar to last year's fight to raise the U.S. debt ceiling, which led to the downgrade of the United States' top credit rating in early August 2011.


During the dealings, the S&P 500 lost 18.8 percent between its peak in July 2011 and its bottom in August. As the market slid, the political standoff badly hurt investors' confidence in Washington, setting off a spike in volatility.


In the end a deal was announced that raised the ceiling and put off longer-term fiscal decisions until January 1, 2013, setting the stage for today's "fiscal cliff" crisis.


After staying flat through September 2011, the S&P 500 jumped 31 percent between its October low and the end of March.


BUY THE DIP?


Gridlock in Washington and all that could possibly go wrong with the economy if a deal is not reached have grabbed the headlines, but the negotiations leave room for stock market gains. Congressional leaders said Friday they will work through the Thanksgiving holiday recess to find a solution.


"The debate over how to solve (the fiscal cliff) may be more productive than is commonly recognized," said Brad Lipsig, senior portfolio manager at UBS Financial Services in New York.


"The U.S. is facing a major debt overhang, and serious steps toward addressing it might ultimately be viewed as a positive for future growth," he said. "The market may recognize this and, after a time of hand wringing, recover from the concerns with a renewed sense of optimism."


The recent selling took the S&P 500's relative strength index - a technical measure of internal strength - below 30 this week, indicating the benchmark is oversold and due for a rebound.


The RSI in four of the 10 S&P sectors - utilities, telecoms, consumer staples and technology - is below 30 and the highest RSI reading, for the consumer discretionary sector, is below 40, suggesting a bounce is in store.


"What I want to do is what we did during the decline following the budget negotiations in the summer of 2011: The lower the stock market goes, the more I want to own stock," said Brian Reynolds, chief market strategist at New York-based Rosenblatt Securities.


"If we go off the cliff it will be with a bungee cord attached," he said.


KEEP CALM AND HEDGE


Volatility is expected to rise through the end of November and to spike in late December if no agreement on the fiscal cliff is reached in Congress. Alongside comes opportunity for those with high risk tolerance.


"Recently, volatility has increased in the market overall. You can't really pick it up in the VIX yet, but I think as we get through November, I think you're likely to see the VIX be at a relatively higher level," said Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston.


In 2011, the VIX averaged 19.2 in July and 35 in August. So far this month the average is 17.8 and it is expected to spike if negotiations on the cliff drag into late next month.


"Looking at the range of possibilities, I would say any of them would be better than sitting here waiting. I would even put going off the fiscal cliff in that category," said Jill Cuniff, president of Seattle-based Edge Asset Management Inc, which manages about $20 billion.


"But we don't believe Congress will let that happen; there's going to be some middle ground here."


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


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