Stock futures signal slightly higher open

NEW YORK (Reuters) - Stock futures edged up in low volume on Tuesday as the market continues to be hostage to negotiations in Washington on how to avert a "fiscal cliff" that could push the U.S. economy into recession.

* Congress Republicans proposed steep spending cuts on Monday but gave no ground on President Barack Obama's call to raise taxes, and the proposal was dismissed by the White House.

* Headlines about the negotiations have dominated market action of late, with many expecting Congress to come up with a deal that could trigger a rally in equities.

* Coach became the latest company to advance the date of its next dividend payment. Expectations of higher taxes on dividends kicking in next year have pushed many companies to pay special dividends this year or advance their next pay back to investors.

* S&P 500 futures rose 1.2 points and were slightly 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 rose 10 points, and Nasdaq 100 futures added 4.5 points.

* A light data calendar for Tuesday includes the Institute for Supply Management-New York release of its November index of regional business activity at 9:45 a.m. (1445 GMT).

* Cerberus Capital Management is in talks to join Virtu Financial's bid for U.S. brokerage Knight Capital Group , the Wall Street Journal reported, citing people familiar with the discussions. Knight became a takeover target after a trading glitch left it nearly bankrupt earlier his year.

* Shares of Pep Boys-Manny Moe and Jack were down 7.4 percent in light premarket trading a day after the release of the auto parts retailer's results.

* U.S. stocks struggled on Monday to extend the previous week's gains, dropping as disappointing numbers on U.S. factory activity dampened optimism about China's economic growth. The Dow Jones industrial average <.dji> fell 0.46 percent to 12,965.60 at the close. The S&P 500 <.spx> declined 0.47 percent to 1,409.46 and the Nasdaq Composite <.ixic> dropped 0.27 percent, to 3,002.20.

(Reporting by Rodrigo Campos; Editing by Chizu Nomiyama)

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Clinton Warns Syria Against Using Chemical Weapons

PRAGUE — Secretary of State Hillary Rodham Clinton on Monday warned Syrian President Bashar al-Assad not to use chemical weapons and said that the United States was prepared to act if he ignored the warning.

“This is a red line for the United States,” Mrs. Clinton said. “I am not going to telegraph in any specifics what we would do in the event of credible evidence that the Assad regime has resorted to using chemical weapons against their own people. But suffice it to say we are certainly planning to take action if that eventuality were to occur.”

There have been signs in recent days of heightened activity at some of Syria’s chemical weapons sites, according to American and Israeli officials familiar with intelligence reports. Mrs. Clinton did not confirm the intelligence reports or say what sort of activity was occurring.

The Syrian Foreign Ministry, in a swift response, said Damascus "would not use chemical weapons, if it had them, against its own people under any circumstances." The statement was reported on Syrian state television and the Lebanese channel LBC.

Mrs. Clinton, who made her comments after meeting with Karel Schwarzenberg, the foreign minister of the Czech Republic, indicated that the two sides had discussed the situation in Syria, including the potential chemical weapons threat.

Mr. Schwarzenberg described the situation in Syria as “rather chaotic” and “highly dangerous.” He said that Czech troops who specialize in the detection of chemical weapons and decontamination if they are used are in Jordan training with Jordanian forces.

An American task force has been deployed to Jordan and has been helping the Jordanians deal with the escalating humanitarian crisis, including an exodus of more than 200,000 refugees from Syria to Jordan. The force is also planning on how to respond, if necessary, to a chemical weapons threat.

Although Mrs. Clinton’s reference to a “red line” echoed a warning issued by President Obama in August, it was the most explicit warning from a ranking American official since reports of renewed chemical weapons activity began to surface in recent days.

Mrs. Clinton stopped in Prague on her way to Brussels for a meeting of NATO foreign ministers. A major topic of the NATO meeting is a Turkish request that the alliance deploy Patriot antimissile batteries in Turkey. The Turkish government is concerned about Syria’s ballistic missiles, which could carry chemical weapons, and wants NATO to guard as many as 10 sites inside Turkey.

What exactly is happening at Syria’s chemical sites is unclear.  One American official said Sunday that “the activity we are seeing suggests some potential chemical weapon preparation,” which goes beyond the mere movement of stockpiles among Syria’s several dozen known sites. But the official declined to offer more specifics.

Over the weekend, the activity in Syria prompted a series of urgent consultations among the Western nations, which have long been developing contingency plans to neutralize the chemical weapons, a task that the Pentagon estimates would require more than 75,000 troops. But there were no signs that any American action was imminent.

So far, President Obama has been very cautious about intervening in Syria, declining to arm the opposition groups directly.

Anne Barnard contributed reporting from Beirut, Lebanon.

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Johnny Depp Performs with Alice Cooper in L.A.

Caught in the Act

12/03/2012 at 07:15 AM EST

Johnny Depp and Alice Cooper

Todd Nakamine

Johnny Depp rocks!

The Lone Ranger actor joined Alice Cooper on stage at the Orpheum Theatre in Los Angeles on Thursday.

"Johnny was in great spirits," a fellow concertgoer tells PEOPLE. "He was really happy and at ease, especially on stage with the rest of the band."

During their performance, Depp and Cooper played several cover songs including The Doors' "Break On Through (To the Other Side)," The Beatles' "Revolution" and Jimi Hendrix's "Foxy Lady."

Depp – who stepped out solo – was enjoying a "guys night" and wasn't "with any ladies," the source adds.

– Jessica Herndon

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Asperger's dropped from revised diagnosis manual

CHICAGO (AP) — The now familiar term "Asperger's disorder" is being dropped. And abnormally bad and frequent temper tantrums will be given a scientific-sounding diagnosis called DMDD. But "dyslexia" and other learning disorders remain.

The revisions come in the first major rewrite in nearly 20 years of the diagnostic guide used by the nation's psychiatrists. Changes were approved Saturday.

Full details of all the revisions will come next May when the American Psychiatric Association's new diagnostic manual is published, but the impact will be huge, affecting millions of children and adults worldwide. The manual also is important for the insurance industry in deciding what treatment to pay for, and it helps schools decide how to allot special education.

This diagnostic guide "defines what constellations of symptoms" doctors recognize as mental disorders, said Dr. Mark Olfson, a Columbia University psychiatry professor. More important, he said, it "shapes who will receive what treatment. Even seemingly subtle changes to the criteria can have substantial effects on patterns of care."

Olfson was not involved in the revision process. The changes were approved Saturday in suburban Washington, D.C., by the psychiatric association's board of trustees.

The aim is not to expand the number of people diagnosed with mental illness, but to ensure that affected children and adults are more accurately diagnosed so they can get the most appropriate treatment, said Dr. David Kupfer. He chaired the task force in charge of revising the manual and is a psychiatry professor at the University of Pittsburgh.

One of the most hotly argued changes was how to define the various ranges of autism. Some advocates opposed the idea of dropping the specific diagnosis for Asperger's disorder. People with that disorder often have high intelligence and vast knowledge on narrow subjects but lack social skills. Some who have the condition embrace their quirkiness and vow to continue to use the label.

And some Asperger's families opposed any change, fearing their kids would lose a diagnosis and no longer be eligible for special services.

But the revision will not affect their education services, experts say.

The new manual adds the term "autism spectrum disorder," which already is used by many experts in the field. Asperger's disorder will be dropped and incorporated under that umbrella diagnosis. The new category will include kids with severe autism, who often don't talk or interact, as well as those with milder forms.

Kelli Gibson of Battle Creek, Mich., who has four sons with various forms of autism, said Saturday she welcomes the change. Her boys all had different labels in the old diagnostic manual, including a 14-year-old with Asperger's.

"To give it separate names never made sense to me," Gibson said. "To me, my children all had autism."

Three of her boys receive special education services in public school; the fourth is enrolled in a school for disabled children. The new autism diagnosis won't affect those services, Gibson said. She also has a 3-year-old daughter without autism.

People with dyslexia also were closely watching for the new updated doctors' guide. Many with the reading disorder did not want their diagnosis to be dropped. And it won't be. Instead, the new manual will have a broader learning disorder category to cover several conditions including dyslexia, which causes difficulty understanding letters and recognizing written words.

The trustees on Saturday made the final decision on what proposals made the cut; recommendations came from experts in several work groups assigned to evaluate different mental illnesses.

The revised guidebook "represents a significant step forward for the field. It will improve our ability to accurately diagnose psychiatric disorders," Dr. David Fassler, the group's treasurer and a University of Vermont psychiatry professor, said after the vote.

The shorthand name for the new edition, the organization's fifth revision of the Diagnostic and Statistical Manual, is DSM-5. Group leaders said specifics won't be disclosed until the manual is published but they confirmed some changes. A 2000 edition of the manual made minor changes but the last major edition was published in 1994.

Olfson said the manual "seeks to capture the current state of knowledge of psychiatric disorders. Since 2000 ... there have been important advances in our understanding of the nature of psychiatric disorders."

Catherine Lord, an autism expert at Weill Cornell Medical College in New York who was on the psychiatric group's autism task force, said anyone who met criteria for Asperger's in the old manual would be included in the new diagnosis.

One reason for the change is that some states and school systems don't provide services for children and adults with Asperger's, or provide fewer services than those given an autism diagnosis, she said.

Autism researcher Geraldine Dawson, chief science officer for the advocacy group Autism Speaks, said small studies have suggested the new criteria will be effective. But she said it will be crucial to monitor so that children don't lose services.

Other changes include:

—A new diagnosis for severe recurrent temper tantrums — disruptive mood dysregulation disorder. Critics say it will medicalize kids' who have normal tantrums. Supporters say it will address concerns about too many kids being misdiagnosed with bipolar disorder and treated with powerful psychiatric drugs. Bipolar disorder involves sharp mood swings and affected children are sometimes very irritable or have explosive tantrums.

—Eliminating the term "gender identity disorder." It has been used for children or adults who strongly believe that they were born the wrong gender. But many activists believe the condition isn't a disorder and say calling it one is stigmatizing. The term would be replaced with "gender dysphoria," which means emotional distress over one's gender. Supporters equated the change with removing homosexuality as a mental illness in the diagnostic manual, which happened decades ago.

___

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

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China data lifts futures, fiscal cliff concern lingers

NEW YORK (Reuters) - Stock futures edged higher on Monday on upbeat factory data from China, but concerns over budget dealings in Washington are expected to keep traders cautious.

* China's economy picked up in November even as a broader global recovery remains fragile, with factory activity patchy elsewhere in Asia as demand from the developed world remains depressed.

* Markets have focused for weeks on negotiations in Washington over some $600 billion in spending cuts and tax hikes scheduled to kick in next year that could tip the U.S. economy back into recession.

* U.S. Treasury Secretary Timothy Geithner pushed Republicans on Sunday to offer specific ideas to cut the deficit, and predicted that they would agree to raise tax rates on the rich to obtain a year-end deal to avoid the "fiscal cliff."

* S&P 500 futures rose 4.3 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 rose 40 points, and Nasdaq 100 futures added 14 points.

* The S&P 500 on Friday closed its fifth positive month in six and is up 8 percent since the end of May.

* Greece said it would spend 10 billion euros to buy back bonds in a bid to reduce its ballooning debt and unfreeze long-delayed aid, setting a price range above market expectations to ensure sufficient investor interest. The buyback is central to the efforts of Greece's foreign lenders to put the near-bankrupt country's debt back on a sustainable footing.

* The Institute for Supply Management releases its November manufacturing index at 10 a.m. ET (1500 GMT). Economists in a Reuters survey expect a reading of 51.3 for the main index versus 51.7 in October.

* Also at 10 a.m. ET, the Commerce Department releases October construction spending data. Economists forecast a rise of 0.5 percent compared with a 0.6 percent rise in September.

* Singapore Airlines said it was in talks with interested parties to sell its 49 percent stake in British carrier Virgin Atlantic, with sources revealing that Delta Air Lines was among the potential suitors.

(Reporting by Rodrigo Campos; Editing by Chizu Nomiyama)

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Tunnel Collapse Outside Tokyo Traps Motorists

TOKYO — At least seven people were feared dead after part of a highway tunnel collapsed Sunday in eastern Japan, trapping them in their vehicles and starting a fire that filled the tunnel with thick, black smoke. Government officials said fear of an additional collapse had prevented rescuers from reaching the two trapped vehicles.

The vehicles were crushed under concrete that fell from the ceiling of the three-mile Sasago Tunnel near the city of Otsuki in Yamanashi Prefecture, about 50 miles west of Tokyo, the national government’s disaster management agency said. The agency said it remained unclear why the 150-200-foot section of 8-inch-thick concrete suddenly fell.

A burning vehicle emitted heavy smoke that initially prevented firefighters from entering the tunnel. But even after putting out the blaze, rescuers suspended efforts to reach the trapped vehicles because of the danger of further collapse, the agency said.

The agency said a woman in her 20s managed to flee one of the crushed vehicles. She told firefighters that six other people remained trapped in her vehicle. It was unknown how many people were in the other vehicle besides the driver, who was apparently also still trapped inside.

The accident closed a section of the Chuo Expressway, a vital transportation artery connecting Tokyo to western Japan. Such long tunnels — usually lined with smooth, white concrete — are a common sight on highways in this mountainous island nation.

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iPad mini shortages may soon be resolved

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Ashley Hebert and J.P. Rosenbaum Are Married

People Exclusive

By Monica Rizzo

12/01/2012 at 06:15 PM EST

J.P. Rosenbaum and Ashley Hebert

Victor Chavez/Getty

It’s official: Bachelorette star Ashley Hebert and her fiancé J.P. Rosenbaum tied the knot Saturday afternoon in Pasadena, Calif.

Surrounded by family, friends and fellow Bachelor and Bachelorette alumni like Ali Fedotowsky, Emily Maynard, and Jason and Molly Mesnick, the couple said "I do" in an outdoor ceremony officiated by franchise host Chris Harrison.

"Today is all about our friends and family," Hebert, whose nuptials will air Dec. 16 on a two-hour special on ABC, tells PEOPLE. "It's about standing with J.P., looking around at all the people we love in the same room there to celebrate our love."

The 28-year-old dentist from Madawaska, Maine, met New York construction manager Rosenbaum, 35, on season 7 of The Bachelorette. The couple became engaged on the season finale.

Hebert and Rosenbaum are the second couple in the franchise's 24 seasons to make it from their show finale to the altar, following in the footsteps of Bachelorette Trista Rehn, who married Vail, Colo., firefighter Ryan Sutter in 2003.

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Cliff fight may knock out December rally

NEW YORK (Reuters) - In normal times, next week's slew of U.S. economic data could be a springboard for a December rally in the stock market.

December is historically a strong month for markets. The S&P 500 has risen 16 times in the past 20 years during the month.

But the market hasn't been operating under normal circumstances since November 7 when a day after the U.S. election, investors' focus shifted squarely to the looming "fiscal cliff."

Investors are increasingly nervous about the ability of lawmakers to undo the $600 billion in tax increases and spending cuts that are set to begin in January; those changes, if they go into effect, could send the U.S. economy into a recession.

A string of economic indicators next week, which includes a key reading of the manufacturing sector on Monday, culminates with the November jobs report on Friday.

But the impact of those economic reports could be muted. Distortions in the data caused by Superstorm Sandy are discounted.

The spotlight will be more firmly on signs from Washington that politicians can settle their differences on how to avoid the fiscal cliff.

"We have a week with a lot of economic data, and obviously most of the economic data is going to reflect the effects of Sandy, and that might be a little bit negative for the market next week, but most of that is already expected - the main focus remains the fiscal cliff," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

Concerns about the cliff sent the S&P 500 <.spx> into a two-week decline after the elections, dropping as much as 5.3 percent, only to rally back nearly 4 percent as the initial tone of talks offered hope that a compromise could be reached and investors snapped up stocks that were viewed as undervalued.

On Wednesday, the S&P 500 gained more than 20 points from its intraday low after House Speaker John Boehner said he was optimistic that a budget deal to avoid big spending cuts and tax hikes could be worked out. The next day, more pessimistic comments from Boehner, an Ohio Republican, briefly wiped out the day's gains in stocks.

On Friday, the sharp divide between the Democrats and the Republicans on taxes and spending was evident in comments from President Barack Obama, who favors raising taxes on the wealthy, and Boehner, the top Republican in Congress, who said Obama's plan was the wrong approach and declared that the talks had reached a stalemate.

"It's unusual to end up with one variable in this industry, it's unusual to have a single bullet that is the causal factor effect, and you are sitting here for the next maybe two weeks or more, on that kind of condition," said Sandy Lincoln, chief market strategist at BMO Asset Management U.S. in Chicago.

"And that is what is grabbing the markets."

BE CONTRARY AND MAKE MERRY

But investor attitudes and seasonality could also help spur a rally for the final month of the year.

The most recent survey by the American Association of Individual Investors reflected investor caution about the cliff. Although bullish sentiment rose above 40 percent for the first time since August 23, bearish sentiment remained above its historical average of 30.5 percent for the 14th straight week.

December is a critical month for retailers such as Target Corp and Macy's Inc . They saw monthly retail sales results dented by Sandy, although the start of the holiday shopping season fared better.

With consumer spending making up roughly 70 percent of the U.S. economy, a solid showing for retailers during the holiday season could help fuel any gains.

Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati, believes the recent drop after the election could be a market bottom, with sentiment leaving stocks poised for a December rally.

"The concerns on the fiscal cliff - as valid as they might be - could be overblown. When you look at a lot of the overriding sentiment, that has gotten extremely negative," said Detrick.

"From that contrarian point of view with the historically bullish time frame of December, we once again could be setting ourselves up for a pretty nice end-of-year rally, based on lowered expectations."

SOME FEEL THE BIG CHILL

Others view the fiscal cliff as such an unusual event that any historical comparisons should be thrown out the window, with a rally unlikely because of a lack of confidence in Washington to reach an agreement and the economic hit caused by Sandy.

"History doesn't matter. You're dealing with an extraordinary set of circumstances that could very well end up in the U.S. economy going into a recession," said Phil Orlando, chief equity market strategist at Federated Investors in New York.

"And the likelihood of that is exclusively in the hands of our elected officials in Washington. They could absolutely drag us into a completely voluntary recession."

(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: charles.mikolajczak(at)thomsonreuters.com )

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)

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Dennis Quaid Files for Divorce, Seeks Joint Custody

By Mike Fleeman

11/30/2012 at 09:20 PM EST

Kimberly Buffington-Quaid and Dennis Quaid

Casey Rodgers/NBC/AP

Dennis Quaid is ready to end his marriage for good.

After his wife of eight years, Kimberly Buffington-Quaid, sought legal separation in October, the Vegas star filed Friday for divorce in Los Angeles Superior Court.

The actor requests joint physical and legal custody of their 4-year-old twins, Thomas and Zoe, and offers to pay spousal support, according to the petition.

This will be the third divorce for Quaid, 58, who was previously married to Meg Ryan and P.J. Soles.

Kimberly, a former real estate agent, initially filed for divorce in March. She
put the divorce on hold a month later, pulling the papers so they could work on their marriage, before then filing for separation.

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