Amanda Seyfried: 'Everyone Wants to Have Sex' with Channing Tatum















12/11/2012 at 08:00 AM EST



Amanda Seyfried has worked with a lot of good-looking men, but there's one in particular who rises to the top of her list.

"Channing [Tatum] was amazing. He's a superstar," the actress, 27, tells the January issue of InStyle about PEOPLE's 2012 Sexiest Man Alive.

Seyfried, who starred opposite Tatum in 2010's Dear John, is well-aware of her former costar's appeal.

"Everybody wants to have sex with him. And the only person he wants to have sex with is his wife, Jenna [Dewan-Tatum]. He's the most loyal husband," she says.

But while Tatum and Dewan-Tatum have managed to find marital bliss in spite of being in the spotlight, Seyfried admits she's not as lucky.

"The thing is, I can't date anybody without it being portrayed as a serious relationship in the tabloids. It sucks! Like Josh Hartnett and I were friends; we hung out, we dated. I don't actually have sex with every male I come into contact with," she says.

Another of Seyfried's costars getting a lot of attention is Anne Hathaway, who chopped off her locks and went on a drastic diet for her role in the upcoming Les Misérables, opening Dec. 25 (Seyfried plays Cosette, and Hathaway is Fantine).

"I would have done that for sure," Seyfried says of the haircut, but she draws the line there. "I probably wouldn't lose or gain weight for a role, though. I'm too health-conscious. And I don't think I could actually lose weight because I couldn't be on that kind of a diet. I would lose my mind."

Stripping for Lovelace

But playing the late porn-star-turned-feminist Linda Lovelace for the upcoming biopic Lovelace did have Seyfried focusing on her physique, which she doesn't mind.

"It's not about my body. It's not about me," she says of doing nude scenes. "You're playing somebody else. You're not going to believe a love scene if the people are dressed. You're not going to believe a stripper who has on a bra and underwear the whole time. At the same time, it has to do with how comfortable you are with letting people see your skin. For me, I'm okay with it."

Seyfried also says that being diagnosed with obsessive-compulsive disorder – which she manages with Lexapro – has positively contributed to her acting.

"I don't feel like I'm struggling with it. I think OCD is a part of me that protects me. It's also the part of me that I use in my job, in a positive way," she tells the magazine. "The only thing I'd like to get beyond is my fear of driving over bridges and through tunnels. I can't overcome it."

See Amanda Seyfried's best red carpet looks at Instyle.com

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Stock futures rise after German data; Fed eyed


NEW YORK (Reuters) - Stock futures were higher on Tuesday after unexpectedly cheery data out of Europe and as the Federal Reserve was set to kick off its two-day policy meeting.


Though the pace of talks in Washington to avert impending U.S. tax hikes and spending cuts quickened, senior politicians on both sides cautioned that an agreement on all the outstanding issues remained uncertain.


The lack of progress in negotiations about the "fiscal cliff" has kept investors from making aggressive bests in recent weeks, though most expect a deal will eventually be reached.


In Germany, analyst and investor sentiment rose sharply in December, entering positive territory for the first time since May, a leading survey showed. The data helped drive European shares higher.


"We've been getting a lot of the beginning of our day from seeing what Europe has been doing and I think that's going to hold true today," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.


The Fed will begin its policy-setting meeting on Tuesday. The central bank is expected to announce a new round of Treasury securities purchases when the meeting ends on Wednesday, according to a Reuters poll. The program would replace its "Operation Twist" stimulus which expires at the end of the year.


S&P 500 futures rose 3.2 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 gained 34 points, and Nasdaq 100 futures added 7 points.


The U.S. Treasury is selling its remaining stake in insurer American International Group Inc , bringing an end to government ownership of the company about four years after a $182 billion bailout. AIG's shares were up 1.2 percent at $33.75 in premarket trade.


Texas Instruments Inc slightly improved its profit target late on Monday, excluding a massive restructuring charge, as the company cuts costs.


Also in the tech sector, Intel Corp said it is on track to launch a new generation of chips for smartphones and tablets as it rushes to catch up with the competition.


Morgan Stanley might seek approval from the Federal Reserve to repurchase shares for the first time in four years, the Wall Street Journal reported, citing people familiar with the firm's thinking.


On the macro front, U.S. international trade data for October is due at 8:30 am ET (1330 GMT) and wholesale inventories is due at 10:00 am ET (1500 GMT).



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India Ink: Congress Party Craters in Gujarat

KESHOD, India
The prospects of the Indian National Congress party in the battleground state of Gujarat are dwindling by the day, analysts and potential voters say, a situation that could ultimately advance Gujarat chief minister Narendra Modi’s bid to become prime minister.

Sonia Gandhi, the president of the Congress party, drew smaller-than-expected crowds in Gujarat this weekend, just days ahead of state elections, and important party members and aides have defected in recent weeks. Some supporters say they have lost hope.

“I’ve been a Congress supporter since I was in college,” said Meena Raval, 44, a homemaker from Rajkot who holds a master’s degree in English literature. “But there is a vast difference between Congress leaders of the 1980s and 1990s and those of today,” she said. “It’s hard to win an election, let alone come to power, without a strong, powerful leader.”

Unlike in Rajkot in early October, when Mrs. Gandhi’s rally attracted nearly 150,000 people, there were only about 15,000 attendees at a rally in Mandvi and 10,000 at Keshod this weekend. Many seemed to be local tribal women, who were keener to see how Mrs. Gandhi, probably India’s best-known politician, looked than to listen to what she had to say.

“I didn’t understand what she was saying,” said Ramaben Prajapati, 34, a vegetable seller from a village near Keshod. “But I thought she was very honest. I was impressed by her personality and body language.”

Gujarat voters go to the polls on Dec. 13 and 17th in a two-part election, when they will decide whether to re-elect Mr. Modi for a third term. How he fares in this election could help determine whether he becomes the opposition Bharatiya Janata Party’s candidate for prime minister in India’s next national elections.

Allegations that Mr. Modi encouraged, or did not do enough to stop, the 2002 riots in Gujarat which left hundreds dead, mostly Muslims, have dogged his political career and made him one of India’s most polarizing politicians. Still, the state’s ability to attract foreign investment and build infrastructure since he took power have gained accolades, and new supporters.

Mr. Modi’s no-expenses-spared state election campaign includes rallies across the state led by a three-dimensional avatar that speaks in numerous locations at once.

The political fight has become increasingly nasty in recent weeks, with Congress party members accusing Mr. Modi of hypocrisy and lying, and he, in turn, calling Congress and the Gandhi family a corrupt organization with no other political agenda but to criticize Mr. Modi.

Meanwhile, key members of the party in Gujarat are abandoning it. Members of the state’s legislative assembly and hundreds of party officials have switched from the Congress to the opposition in recent weeks. Defectors include lawmakers Kuvarji Halpati, Lalsinh Vadodia, Brijrajsinh Jadeja, Bhavsinh Rathod and party officials Mahendrasinh Rana, Ashok Dangar, Girish Parmar, Asifa Khan Pathan and Poonam Madam.

The most high-profile departure has been former deputy chief minister Narhari Amin, from Ahmedabad, who was at the forefront of the party’s election campaign until Nov. 30. On Dec. 6, he joined the B.J.P., along with many of his aides. Mr. Amin’s defection came after the party denied him a spot on the ballot from the state capital of Gandhinagar. “As a sincere and senior leader I felt insulted because the Congress gave tickets to unknown faces,” Mr. Amin said in an interview. “Is this the price of loyalty? There was no way I could have stayed in Congress after being so treated.”

Mrs. Gandhi and one of her close aides, Ahmed Patel, rushed several top Congress leaders from New Delhi to Gujarat to persuade Mr. Amin to change his mind, but he refused. Nearly 80 key Congress workers from Ahmedabad and another 100 from across Gujarat have joined the B.J.P. along with him, Mr. Amin said. “In all, nearly 20,000 people from Congress across Gujarat have joined the B.J.P. in the last few weeks,” he said, including mayors and chiefs of district and village councils.

“Congress just can’t stop the B.J.P. juggernaut,” Mr. Amin said. “We’ll ensure that Modi makes a hat-trick of a win in Gujarat.”  

The Congress general secretary for Gujarat, Kashmira Nathwani, conceded in an interview that there have been “some cases” of defection and a “feeling of disappointment in some quarters.” Still, she said, “Congress is as strong as ever in Gujarat and it’s all thanks to its millions of supporters and strong leadership at the state as well as national level.”

Participants at last weekend’s rallies, though, said Mrs. Gandhi lacked the vigor and zeal she had displayed in Rajkot earlier this year.

“I was hoping she would forcefully answer some of the questions Narendra Modi had asked her at one of his public rallies,” said Manish Chauhan 22, an engineering student and Congress supporter from Junagadh, who had come to Keshod to hear her. “But she was a big disappointment. She appeared to be quite subdued and her attitude was defeatist.”

Some voters say that Congress has given them few reasons to vote for the party, instead telling them why they should vote against Mr. Modi.

“There are many issues the Congress leaders can take up, but all the time they are seen busy bashing Modi and hardly talking about any other serious matter,” said Popat Bharwad, 28, a roadside tea seller from Rajkot, who described himself as passionately interested in Indian politics and cricket. “This gives Modi more publicity and gradually distances people from Congress.”

Many Congress supporters in Gujarat now say they can’t see their party winning this state election, or any others in the near future.

“I’ve always been a Congress loyalist, but we have to face the reality – we have little hope to regain power in Gujarat,” said one sociology professor from Rajkot, who asked not to be identified because he did not want to offend associates from the Congress party. “The problem is Congress just doesn’t have a leader of Modi’s charisma and dynamism.”

Bharatiya Janata Party leaders, not surprisingly, agreed. “There is so much defection in Congress that it will be wiped out from Gujarat in coming years,” predicted Naresh Kanodiya, a Gujarati actor and a former member of the state legislative assembly for the B.J.P.

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Prince Harry Will Be a 'Wonderful Uncle,' Says Family Friend









12/10/2012 at 07:45 AM EST



He may be serving in Afghanistan, but Prince Harry is already gearing up for uncle duty when sister-in-law Kate gives birth.

And expect fun and fireworks from the playful prince.

"He will be a wonderful uncle – [think of] the mischief he will want to get up to with the [children]!" a friend tells PEOPLE. "I can see it already."

That would match his behavior at that other great occasion in William and Kate's life – their wedding. It was Harry, 28, who had the young flower girls scurrying around his feet at the Palace reception, a guest told PEOPLE at the time.

Harry, who is serving as an Apache attack helicopter pilot on a tour of Afghanistan until early next year, has had to make do with phone calls to and from his brother and sister-in-law since they broke the happy news of their pregnancy.

And he is said to have sent Kate, who is recuperating at home following her attack of severe morning sickness, a get-well message from the frontline.

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Smokers celebrate as Wash. legalizes marijuana


SEATTLE (AP) — The crowds of happy people lighting joints under Seattle's Space Needle early Thursday morning with nary a police officer in sight bespoke the new reality: Marijuana is legal under Washington state law.


Hundreds gathered at Seattle Center for a New Year's Eve-style countdown to 12 a.m., when the legalization measure passed by voters last month took effect. When the clock struck, they cheered and sparked up in unison.


A few dozen people gathered on a sidewalk outside the north Seattle headquarters of the annual Hempfest celebration and did the same, offering joints to reporters and blowing smoke into television news cameras.


"I feel like a kid in a candy store!" shouted Hempfest volunteer Darby Hageman. "It's all becoming real now!"


Washington and Colorado became the first states to vote to decriminalize and regulate the possession of an ounce or less of marijuana by adults over 21. Both measures call for setting up state licensing schemes for pot growers, processors and retail stores. Colorado's law is set to take effect by Jan. 5.


Technically, Washington's new marijuana law still forbids smoking pot in public, which remains punishable by a fine, like drinking in public. But pot fans wanted a party, and Seattle police weren't about to write them any tickets.


In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.


The mood was festive in Seattle as dozens of gay and lesbian couples got in line to pick up marriage licenses at the King County auditor's office early Thursday.


King County and Thurston County announced they would open their auditors' offices shortly after midnight Wednesday to accommodate those who wanted to be among the first to get their licenses.


Kelly Middleton and her partner Amanda Dollente got in line at 4 p.m. Wednesday.


Hours later, as the line grew, volunteers distributed roses and a group of men and women serenaded the waiting line to the tune of "Chapel of Love."


Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.


In dealing with marijuana, the Seattle Police Department told its 1,300 officers on Wednesday, just before legalization took hold, that until further notice they shall not issue citations for public marijuana use.


Officers will be advising people not to smoke in public, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."


He offered a catchy new directive referring to the film "The Big Lebowski," popular with many marijuana fans: "The Dude abides, and says 'take it inside!'"


"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."


Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.


But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.


The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.


"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress."


The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.


That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.


Alison Holcomb is the drug policy director of the American Civil Liberties Union of Washington and served as the campaign manager for New Approach Washington, which led the legalization drive. She said the voters clearly showed they're done with marijuana prohibition.


"New Approach Washington sponsors and the ACLU look forward to working with state and federal officials and to ensure the law is fully and fairly implemented," she said.


___


Johnson can be reached at https://twitter.com/GeneAPseattle


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Stock futures lower on fiscal cliff apprehension


NEW YORK (Reuters) - Stock futures were lower on Monday as investors awaited any sign of progress in talks to avert the United States' so-called "fiscal cliff" of tax hikes and spending cuts.


* U.S. President Barack Obama met with Republican Speaker of the House of Representatives John Boehner on Sunday to negotiate ways to avoid the fiscal cliff that is set to go into effect in the new year.


* The two sides declined to provide further details about the unannounced meeting.


* Developments in the talks have kept markets on edge in the last month as investors worry the scheduled measures could send the economy into recession if politicians do not reach a deal.


* Italian Prime Minister Mario Monti announced over the weekend that he would resign once the 2013 budget is approved, driving up the country's borrowing costs.


* Also overseas, China's export growth slowed sharply in November, highlighting the global headwinds dragging on the world's second-largest economy. Other data over the weekend showed both industrial output and retail sales rose in November at their fastest annual pace in eight months, suggesting China's economy is picking up.


* S&P 500 futures fell 2.5 points and were below 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 fell 11 points, and Nasdaq 100 futures dropped 7 points.


* Ingersoll-Rand Plc is expected to announce as soon as Monday it will spin off its security division, two people familiar with the matter said.


* American International Group Inc is to sell nearly all of ILFC , the world's second-largest airplane leasing business, to a Chinese consortium for up to $4.8 billion.


(Reporting By Leah Schnurr; Editing by Chizu Nomiyama)



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Stalled Adoption Program in Guatemala Leaves Families in Limbo


Rodrigo Cruz for The New York Times


Amy and Rob Carr in Guatemala with Geovany Archilla Rodas, whom they have been trying to adopt since 2007. More Photos »







GUATEMALA CITY — The little boy flies like an airplane through the hotel, his arms outstretched. Then he leaps like a superhero, beaming as the red lights on his new sneakers flash and flicker, while the American couple he is with dissolve in laughter.




He calls them Mamá and Papi. They call him Hijo — Son. He corrects their fledgling Spanish. They teach him English. “Awe-some,” he repeats carefully, eyeing his new shoes.


To outsiders, they look like a family. But Geovany Archilla Rodas, an impish 6-year-old boy with spiky black hair, lives in an orphanage on the outskirts of this capital city. The Americans — Amy and Rob Carr of Reno, Nev. — live a world away. They are the only parents he has ever known.


They have been visiting him every year, usually twice a year, since he was a toddler, flying into this Central American city for a few days at a time to buy him clothes and to read him stories, to wipe his tears and to tickle him until he collapses in giggles at their hotel or in the orphanage.


Yet half a decade after agreeing to adopt him, the Carrs still have no idea when — or if — they will ever take Geovany home.


“There’s this hope in you that doesn’t want to die,” said Mrs. Carr, who arrived here last month with her husband, more determined than ever to cut through the bureaucracy. “In my heart, he’s my son.”


The Carrs are among the 4,000 Americans who found themselves stuck in limbo when Guatemala shut down its international adoption program in January 2008 amid mounting evidence of corruption and child trafficking. Officials here and in Washington promised at the time to process the remaining cases expeditiously.


But officials and prospective parents say that bureaucratic delays, lengthy investigations and casework hobbled by shortages of staff and resources have left hundreds of children stranded in institutions for years. Today, 150 children — including Geovany — are still waiting in orphanages and foster homes here while the Guatemalan authorities weigh whether to approve their adoptions to families in the United States.


Stalled adoptions are not unique to Guatemala. Concerns about fraud, including allegations of kidnappings and baby selling, have held up American adoptions for months, and sometimes years, from Ethiopia, Kyrgyzstan, Vietnam and Haiti. The State Department currently refuses to approve adoptions from Cambodia and Vietnam to pressure those countries to install safeguards so that children with biological relatives who can care for them are not shipped overseas, officials say.


But the problem of delayed adoptions is particularly acute in Guatemala, a country of about 14 million people, which in 2007 ranked second only to China in the number of children sent to the United States.


As officials here have spent months, and then years, trying to distinguish legitimate adoptions from fraudulent ones, many hopeful couples who had painted nurseries, hosted baby showers and bought brand new cribs began to despair as the infants they had hoped to adopt took their first steps and spoke their first words without them.


Faced with a seemingly endless process, scores of prospective parents quietly abandoned their efforts to adopt the children they once considered their own, officials say.


Guatemalan officials said they never intended for the children to remain institutionalized for so long. They say they have had to thoroughly investigate the cases, some of which are complicated by inconsistencies, false documents and questionable stories, to ensure that the children were not bought or stolen from impoverished rural women.


“These are very vulnerable people, who can be easily taken advantage of,” said Elizabeth Orrego de Llerena, president of the board of directors of the National Adoption Council, which is processing the adoption cases once they have been cleared by the child welfare investigative branch. “At times, they have not had the opportunity to make a complaint or to seek solutions.”


Ms. Orrego de Llerena said that the investigations, which typically include searches for biological relatives, were necessary to ensure that children were given up voluntarily.


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Top Google executive forced off Twitter












Working at Google (GOOG) has its benefits — for one thing, the company’s reputation as an innovator is nearly unmatched — however things aren’t always as simple as they look. After making a joke on Twitter about Microsoft and Nokia’s Windows Phone partnership, Google’s senior vice president of engineering Vic Gundotra was told to stop using the micro-blogging site. Gundotra had been using the social network since December 2007 and suddenly stopped in July 2011. It had been previously speculated that Google CEO Larry Page had told the executive to stop, however nothing had been confirmed until now. While speaking at the SMX Social Media Marketing conference on Thursday, Gundotra confirmed that his “boss” had asked him to stop using the service.


“I was asked not to do that by my boss,” he said, according to TheNextWeb. “I tweeted a tweet about two companies that went viral, went very very viral and made a lot of headline news. And honestly, I didn’t anticipate that my comments would be interpreted in the way they were interpreted.”












The tweet in question was posted on February 11th 2011 and quipped that “two turkeys do not make an Eagle,” a shot at Microsoft (MSFT) and Nokia (NOK) joining to release a new wave of Windows Phones.


Gundotra admitted that he still checks Twitter and Facebook (FB), noting that it is part of his job to keep up on innovation. He can predominantly be found using Google+ these days, however.


Get more from BGR.com: Follow us on Twitter, Facebook


Social Media News Headlines – Yahoo! News


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Michelle Branch's Daughter's Dream Job Is For the Birds - Literally




Celebrity Baby Blog





12/03/2012 at 02:00 PM ET



Prince William and Kate Expecting First Child
Sthanlee B. Mirador/Shooting Star


It seems as if Michelle Branch‘s daughter won’t be following in her musical footsteps any time soon.


While the Grammy Award winning singer/songwriter and her husband, bass player Teddy Landau, are no strangers to the stage, 7-year-old Owen Isabelle has found her niche in nature.


“I think because my husband and I are both musicians, she kind of feels like she has to do something a little bit more serious than her mom and dad,” the Cook Taste Eat host, 29, tells PEOPLE.


“Since she was 3 or 4 years old, she was always into science and dinosaurs and watching nature shows.”


In particular, all-things aviary has struck a chord with the little girl, who has already happily declared her future dream job.

“She’s obsessed with birds. She’s been begging to have a pet bird, which I will not allow,” saya Branch. “[Owen] claims she’s going to be an ornithologist when she grows up. Literally, it’s birds 24/7 — every book she wants is birds, stickers, drawings, clothes, everything.”


And as sure as she is of her pending career plans, Owen is just as confident in her political views. Happy to reveal who would have earned her support, the little girl has no qualms about divulging the deciding factor during the recent Presidential election.


“Around election time she said, ‘You know Mom, if I could vote, I would vote for Barack Obama.’ And I said, ‘Oh, really, that’s so interesting. Why?’” Branch recalls.


“And she said, ‘Well, remember that one time we got to go to the White House and meet him? I don’t vote for strangers.’”


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Wall Street Week Ahead: "Cliff" worries may drive tax selling


NEW YORK (Reuters) - Investors typically sell stocks to cut their losses at year end. But worries about the "fiscal cliff" - and the possibility of higher taxes in 2013 - may act as the greatest incentive to sell both winners and losers by December 31.


The $600 billion of automatic tax increases and spending cuts scheduled for the beginning of next year includes higher rates for capital gains, making tax-loss selling even more appealing than usual.


Tax-related selling may be behind the weaker trend in the shares of market leader Apple , analysts said. The stock is down 20 percent for the quarter, but it's still up nearly 32 percent for the year.


Apple dropped 8.9 percent in this past week alone. For a stock that gained more than 25 percent a year for four consecutive years, the embedded capital gains suddenly look like a selling opportunity if one's tax bill is going to jump sharply just because the calendar changes.


"Tax-loss selling is always a factor (but) tax-gains selling has been a factor this year," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.


"You have a lot of high-net-worth individuals in taxable accounts, and that could be what's affecting stocks like Apple. If you look at the stocks that people have their largest gains in, they seem to be under a little bit more pressure here than usual."


Of this year's top 20 performers in the S&P 1500 index, which includes large, small and mid-cap stocks, all but four have lost ground in the last five trading sessions.


The rush to avoid higher taxes on portfolio gains could cause additional weakness.


The S&P 500 ended the week up just 0.1 percent after another week of trading largely tied to fiscal cliff negotiation news, which has pushed the market in both directions.


A PAIN PILL FROM THE FED?


Next week's Federal Reserve meeting could offer some relief if policymakers announce further plans to help the lackluster U.S. economy. The Federal Open Market Committee will meet on Tuesday and Wednesday. The policy statement is expected at about 12:30 p.m. on Wednesday after the conclusion of the meeting - the Fed's last one for the year.


Friday's jobs report showing non-farm payrolls added 146,000 jobs in November eased worries that Superstorm Sandy had hit the labor market hard.


"After the FOMC meeting, I think it's going to be downhill from there as worries about the fiscal cliff really take center stage and prospects of a deal become less and less likely," said Mohannad Aama, managing director of Beam Capital Management LLC in New York.


"I think we are likely to see an escalation in profit-taking ahead of tax rates going up next year," he said.


MORE VOLUME AND VOLATILITY


Volume could increase as investors try to shift positions before year end, some analysts said.


While most of that would be in stocks, some of the extra trading volume could spill over into options, said J.J. Kinahan, TD Ameritrade's chief derivatives strategist.


Volatility could pick up as well, and some of that is already being seen in Apple's stock.


"The actual volatility in Apple has been very high while the market itself has been calm. I expect Apple's volatility to carry over into the market volatility," said Enis Taner, global macro editor at RiskReversal.com, an options trading firm in New York.


Shares of Apple, the largest U.S. company by market value, registered their worst week since May 2010. In another bearish sign, the stock's 50-day moving average fell to $599.52 - below its 200-day moving average at $601.38.


"There's a lot of tax-related selling happening now, and it will continue to happen. Apple is an example, even (though) there are other factors involved with Apple," Aama said.


While investors may be selling stocks to avoid higher taxes in 2013, companies may continue to announce special and accelerated dividend payments before year end. Among the latest, Expedia announced a special dividend of 52 cents a share to be paid on December 28.


To be sure, the big sell-off in stocks following the November 6 election was likely related to tax selling, making it hard to judge how much more is to come.


Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston, said there's a decent chance that the market could rally before year end.


"Even with little or spotty news that one would put in the positive bucket regarding the (cliff) negotiations, the market has basically hung in there, and I think it's hung in there in anticipation of something coming," he said.


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


(Reporting by Caroline Valetkevitch; Editing by Jan Paschal; Multimedia versions of Reuters Top News are now available for:; 3000 Xtra: visit Reuters Top News; BridgeStation: view story .134; For London stock market outlook please click on .L/O; Pan-European stock market outlook .EU/O; Tokyo stock market outlook .T/O; Wall St Week Ahead runs every Friday.)



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