Wall Street gains as earnings flow in; Boeing up

NEW YORK (AP) — Stocks rose on Wall Street Wednesday after U.S. corporate earnings reports got off to a good start.
The Dow Jones industrial average climbed 61.66 points to 13,390.51, its first gain of the week. The Standard & Poor's 500 index gained 3.87 points to 1,461.02, and the Nasdaq composite rose 14 to 3,105.81.
Having rallied after a last-minute resolution stopped the U.S. from going over the "fiscal cliff," stocks are facing their first big challenge of the year as companies start to report earnings for the fourth quarter of 2012. Throughout last year, analysts cut their outlook for earnings growth in the period and now expect them to rise by 3.21 percent, according to data from S&P Capital IQ.
"Maybe earnings expectations were a little too low," said Ryan Detrick, a strategist at Schaeffer's Investment Research. "You don't need to have great earnings, you just need to beat those expectations" for stocks to rally, Detrick said.
Early indications were decent. Aluminum maker Alcoa reported late Tuesday that it swung to a profit for the fourth quarter, with earnings that met Wall Street's expectations. The company brought in more revenue than analysts had expected, and the company also predicted rising demand for aluminum this year as the aerospace industry gains strength. Alcoa is usually the first Dow component to report earnings every quarter.
Despite the better revenue number, Alcoa's stock performance Wednesday was lackluster. It traded higher for part of the day then ended down 2 cents at $9.08.
Other companies fared better after reporting earnings. Helen of Troy, which sells personal care products under brands including Dr. Scholl's and Vidal Sassoon, rose 2.7 percent, up 90 cents to $34.43 after reporting a 15 percent increase in quarterly net income.
Boeing was the biggest gainer of the 30 stocks in the Dow. It jumped 3.5 percent, up $2.63 to $76.76, following two days of sharp declines triggered by new problems for its 787 Dreamliner. Boeing said it has "extreme confidence" in the plane even as federal investigators try to determine the cause of a fire Monday aboard an empty Japan Airlines plane in Boston and a fuel leak at another JAL 787 on Tuesday.
The yield on the 10-year Treasury note edged down to 1.86 percent from 1.87 percent.
Among other stocks making big moves:
— Wireless network operator Clearwire jumped 7.2 percent, or 21 cents, to $3.13, after Dish network made an unsolicited offer to buy the company, which has already agreed to sell itself to Sprint. Dish rose 88 cents to $36.85, and Sprint fell 9 cents to $5.88.
— Online education company Apollo Group plunged 7.8 percent after reporting a sharp decline in fall-term student sign-ups at the University of Phoenix. The stock fell $1.63 to $19.32.
— Seagate Technology, a maker of hard-disk drives, jumped 6.6 percent, up $2.09 to $33.48, after predicting revenue for its fiscal second quarter that topped Wall Street expectations late Tuesday.
— Bank of America fell 4.6 percent, down 55 cents to $11.43, after Credit Suisse analysts lowered their outlook on the bank to "neutral" for "outperform," saying the current stock price overestimates the improvement in cost reduction that the bank can achieve this year.

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Wall Street rises after Alcoa reports earnings

NEW YORK (Reuters) - Stocks rose on Wednesday, rebounding from two days of losses, as investors turned their focus to the first prominent results of the earnings season.
Stocks had retreated at the start of the week from the S&P 500's highest point in five years, hit last Friday, on worries about possible earnings weakness.
Shares of Alcoa Inc were down 0.5 percent to $9.08 after early gains, following the company's earnings release after the bell on Tuesday. The largest U.S. aluminum producer said it expects global demand for aluminum to grow in 2013.
Herbalife Ltd stock rose 4.2 percent to $39.95 in its most active day of trading in the company's history after hedge fund manager Dan Loeb took a large stake in the nutritional supplements seller. Prominent short-seller Bill Ackman had previously accused the company of being a "pyramid scheme," which Herbalife has denied.
Traders have been cautious as the current quarter shaped up like the previous one, with companies recently lowering expectations, said James Dailey, portfolio manager of Team Asset Strategy Fund in Harrisburg, Pennsylvania. Lower expectations leave room for companies to surprise investors even if their results are not particularly strong.
"The big question and focus is on revenue, and Alcoa had better-than-expected revenue," which calmed the market a little, Dailey said.
Overall, corporate profits were expected to beat the previous quarter's meager 0.1 percent rise. Both earnings and revenues in the fourth quarter are expected to have grown by 1.9 percent, according to Thomson Reuters data.
The Dow Jones industrial average <.dji> gained 61.66 points, or 0.46 percent, to 13,390.51. The Standard & Poor's 500 Index <.spx> rose 3.87 points, or 0.27 percent, to 1,461.02. The Nasdaq Composite Index <.ixic> gained 14.00 points, or 0.45 percent, to 3,105.81.
Facebook Inc shares rose above $30 for the first time since July 2012, trading up 5.3 percent at $30.59. Facebook, which has been tight-lipped about its plans after its botched IPO in May, invited the media to its headquarters next week.
Clearwire Corp shares jumped 7.2 percent to $3.13 after Dish Network bid $2.28 billion for the company, beating out a previous Sprint offer and setting the stage for a takeover battle for the wireless service provider that owns crucial mobile spectrum.
Apollo Group Inc slid after heavier early losses, a day after it reported lower student sign-ups for the third straight quarter and cut its operating profit outlook for 2013. Apollo's shares were last off 7.8 percent at $19.32.
Volume was below the 2012 average of 6.42 billion shares traded per day, as 6.10 billion were traded on the New York Stock Exchange, NYSE MKT and Nasdaq.
Advancing stocks outnumbered declining ones on the NYSE by 2,014 to 963, while on the Nasdaq advancers beat decliners 1,603 to 859.

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As public fumes, AIG says will not sue U.S. over bailout

(Reuters) - Facing anger from Congress and the American people, AIG Inc said on Wednesday it would not sue the U.S. government over terms of the company's multi-billion dollar bailout.
Insurer American International Group had been weighing whether to join a lawsuit filed by its former Chief Executive Hank Greenberg and his company Starr International, which owned 12 percent of AIG before its $182 billion rescue that started in 2008.
Greenberg claims the rescue was unfair to shareholders and that the Federal Reserve Bank of New York charged an excessive interest rate on its initial loan. He is seeking billions of dollars in damages.
AIG said its board had carried out its legal and fiduciary duty to consider joining Greenberg's lawsuit before making its decision. Greenberg has a case pending in the Court of Federal Claims in Washington, D.C., and is also appealing the dismissal of a lawsuit in the federal court in New York.
AIG's Chief Executive Bob Benmosche said in an interview with CNBC that ultimately the public had to trust the company.
"It is not acceptable socially for AIG to have taken this money and to think we can go back and sue the government," Benmosche said.
AIG said it would not pursue Starr's claims nor would it allow Starr to pursue them on AIG's behalf, setting the stage for a fresh legal fight between Greenberg and the company.
The idea that AIG might sue the government struck a raw nerve with the public, which took to the Internet to vent its anger at what it viewed as the company's audacity. The volume of AIG mentions on Twitter rose more than 50-fold on Tuesday, according to Topsy Analytics.
Starr's attorney, David Boies, said in a statement that AIG's effort to block Starr from pursuing claims was contrary to shareholders' interests.
"Whether or not the AIG Board will be successful in blocking Starr's efforts to recover damages for their shareholders will ultimately be decided the Court," Boies said.
EMOTIONS RUN HIGH
Former Obama administration adviser Austan Goolsbee said "GO SCREW YOURSELVES" in a multi-tweet tirade. Comedian Andy Borowitz drafted a mock letter from the company to taxpayers, asking for more bailout money to pay for the cost of the lawsuit. Dozens of obscene comments made descriptive references to the anatomy of Chief Executive Robert Benmosche.
And those were the gentler barbs. The New York Daily News ran an editorial cartoon in which a lifeguard saves a drowning man with "AIG" on his belly. When the lifeguard asks the man how he feels, the victim says, "Like suing you."
The vitriol was just like it had been in late 2008 and early 2009 when, with the United States deep in recession, AIG employees hid ID badges and their families were threatened amid an uproar over bonuses.
A group of congressmen led by Vermont Democrat Peter Welch sent AIG's chairman a letter late on Tuesday, advising, "Don't do it. Don't even think about it." Other members of Congress threatened hearings.
AIG took to Twitter to defend itself, saying it was legally obligated to at least consider action, but its defense mostly fell on deaf ears.
The U.S. government rescued the company from the brink of bankruptcy in September 2008 with a bailout that ultimately topped $182 billion. After a recapitalization deal closed in early 2011, the U.S. Treasury owned 92 percent of AIG.
The Treasury sold the last of that stake in mid-December 2012. The government has said it earned a return of $22.7 billion on the rescue.
AIG shares rose 0.3 percent to close at $35.76. The stock lost half its value in 2011 but then rose more than 50 percent in 2012, as it showed consistent profitability.

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US banks try to clean up remaining mortgage mess

WASHINGTON (AP) — U.S. banks have taken another step to clear away the wreckage of the 2008 financial crisis by agreeing to pay $8.5 billion to settle charges that they wrongfully foreclosed on millions of homeowners.
The deal announced Monday could compensate hundreds of thousands of Americans whose homes were seized because of abuses such as "robo-signing," when banks automatically signed off on foreclosures without properly reviewing documents. The agreement will also help eliminate huge potential liabilities for the banks.
But consumer advocates complained that regulators settled for too low a price by letting banks avoid full responsibility for foreclosures that victimized families and fueled an exodus from neighborhoods across the country.
The settlement ends an independent review of loan files required under a 2011 action by regulators. Bruce Marks, CEO of the advocacy group Neighborhood Assistance Corp. of America, noted that ending the review will cut short investigations into the banks' practices.
"The question of who's to blame — the homeowners or the lenders — if you stop this investigation now, that will always be an open-ended question," Marks said.
The banks, which include JPMorgan Chase, Bank of America and Wells Fargo, will pay about $3.3 billion to homeowners to end the review of foreclosures.
The rest of the money — $5.2 billion — will be used to reduce mortgage bills and forgive outstanding principal on home sales that generated less than borrowers owed on their mortgages.
A total of 3.8 million people are eligible for payments under the deal announced by the Office of Comptroller of the Currency and the Federal Reserve. Those payments could range from a few hundred dollars to up to $125,000.
Homeowners who were wrongly denied a loan modification will be entitled to relatively small payments. By contrast, people whose homes were unfairly seized and sold would be eligible for the biggest payments.
Banks and consumer advocates had complained that the loan-by-loan reviews required under the 2011 order were time-consuming and costly and didn't reach many homeowners. Banks were paying large sums to consultants to review the files. Some questioned the independence of those consultants, who often ruled against homeowners.
The deal "represents a significant change in direction" that ensures "consumers are the ones who will benefit, and that they will benefit more quickly and in a more direct manner," Thomas Curry, the comptroller of the currency, said in a statement.
But Charles Wanless, a homeowner in the Florida Panhandle, is among those who question that promise. Wanless, who is fighting foreclosure proceedings with Bank of America, says he doubts the money will benefit many who lost homes.
"Let's say they already foreclosed on me and I lost my home," said Wanless, who runs a pool cleaning business in Crestview, Fla. "What's $1,000 going to do to help me? If they took my house away wrongfully, is that going to get me my house back? I might be able to find one if I'm one of the lucky ones who gets $125,000."
Diane Thompson, a lawyer with the National Consumer Law Center, complained that the deal won't actually compensate homeowners for the actual harm they suffered.
The deal "caps (banks') liability at a total number that's less than they thought they were going to pay going in," she said.
Thompson supports the decision to make direct payments to victimized homeowners. But she said the deal will work only if it includes strong oversight and transparency provisions.
The companies involved in the settlement announced Monday also include Citigroup, MetLife Bank, PNC Financial Services, Sovereign, SunTrust, U.S. Bank and Aurora. The 2011 action also included GMAC Mortgage, HSBC Finance Corp. and EMC Mortgage Corp.
Regulators announced the deal on the same day that Bank of America agreed to pay $11.6 billion to government-backed mortgage financier Fannie Mae to settle claims related to mortgages that soured during the housing crash.
The agreements come as U.S. banks are showing renewed signs of financial health, extending their recovery from the 2008 crisis that nearly toppled many of them. They are lending more and earning greater profits than at any time since the Great Recession began in December 2007.
Monday's foreclosure settlement doesn't close the book on the housing crisis, which caused more than 4 million foreclosures. It covers only consumers who were in foreclosure in 2009 and 2010. Some banks didn't agree to the settlement. And resolving millions of claims involving multiple banks and mortgage companies is complicated and time-consuming.
"It's going to take a few more years to get it sorted out," said Bert Ely, an independent banking consultant.
Michael Allen of Petersburg, Va., hopes to benefit from the settlement. He lost his home last month after 2½ years of trying to modify his mortgage. He had fallen behind on his payments after the plant he was working closed.
"I was working with the banks to re-modify (my loan), and I'd get to the final stages and I'd have to start over again. They didn't give me any reason. I'd call them, they'd transfer me from one person to the next. ... They just kept giving me the runaround."
Citigroup said in a statement that it was "pleased to have the matter resolved" and thinks the agreement "will provide benefits for homeowners." Citi expects to record a charge of $305 million in the fourth quarter of 2012 to cover its cash payment under the settlement. The bank expects that existing reserves will cover its $500 million share of the non-cash foreclosure aid.
Bank of America CEO Brian Moynihan said the agreements were "a significant step" in resolving the bank's remaining legacy mortgage issues while streamlining the company and reducing future expenses.
Amy Bonitatibus, spokeswoman for JPMorgan Chase, said the bank had "worked very hard" on the foreclosure review and was "pleased to have it now behind us."
U.S. Bancorp, which owns U.S. Bank, said its part of the settlement includes an $80 million payment to homeowners. That payment will reduce its fourth-quarter earnings by 3 cents per share. It has also committed $128 million in mortgage aid.
Leaders of a House oversight panel have asked regulators for a briefing on the proposed settlement. Regulators had refused to brief Congress before announcing the deal publicly.
Rep. Elijah Cummings of Maryland, the top Democrat on the House Committee on Oversight and Government Reform, said the settlement "may allow banks to skirt what they owe and sweep past abuses under the rug without determining the full harm borrowers have suffered."
He complained that regulators failed to answer key questions about how the settlement was reached, who will get the money and what will happen to others who were harmed by these banks but were not included in the settlement.
The settlement is separate from a $25 billion settlement among 49 state attorneys general, federal regulators and five banks: Ally, formerly known as GMAC; Bank of America; Citigroup; JPMorgan Chase and Wells Fargo.

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Exclusive: Disney looks for cost savings, ponders layoffs - sources

LOS ANGELES (Reuters) - Walt Disney Co started an internal cost-cutting review several weeks ago that may include layoffs at its studio and other units, three people with knowledge of the effort told Reuters, in an early sign that big companies may not be finished tightening their belts.
Disney, whose empire spans TV, film, merchandise and theme parks, is exploring cutbacks in jobs it no longer needs because of improvements in technology, one of the people said.
It is also looking at redundant operations that could be eliminated following a string of major acquisitions over the past few years, said the person.
The people did not want to be identified because Disney has not disclosed the internal review.
After years of repeated and sometimes severe cost cutting in the wake of the financial crisis, by last summer it looked as though Corporate America had trimmed all the fat and was back on the path of profits through operating growth. But news Disney is weighing cuts - on the heels of Eli Lilly and Co's warning last week that cost controls would drive earnings this year - could herald yet another wave of retrenchment.
Disney executives warned in November that the rising cost of sports rights and moribund home video sales would dampen growth.
"We are constantly looking at eliminating redundancies and creating greater efficiencies, especially with the rapid rise in new technology," said Disney spokeswoman Zenia Mucha.
In terms of profit margin, Disney's studio is the least profitable of the entertainment conglomerate's four major product divisions. The studio had a profit margin of 12.3 percent in 2012.
Its fifth division, the interactive unit that creates online games, lost $758 million over the last three years, according to the company's financial filings. The unit lost $216 million last year.
Disney could trim jobs at both the studio and interactive divisions as well as its music arm, said Tony Wible, an analyst with Janney Montgomery Scott, who has a neutral rating on the company's stock.
The media company is in what CEO Bob Iger calls a "transition year" after spending on projects such as the "Cars Land" expansion at the Disneyland Resort in California and a new cruise ship that launched last year.
"We invested a lot of money in our theme parks and resorts business," Disney Chief Financial Officer Jay Rasulo told a media conference in December. "We want to execute against delivering the returns that we've been promising all of you for the years that we've been making those investments. We really want to hunker down on it."
CUTS NOT CERTAIN
Staff cuts are not a certainty at this point, the source added, although the company has a history of streamlining operations through layoffs.
In 2011, the interactive group laid off about 200 people at its video games unit after what Disney executives said at the time was a shift away from console games to focus on online and mobile entertainment. In September, 50 employees at Disney Interactive were laid off in a restructuring of the money-losing unit, according to one of the sources.
The company also made cuts at its publishing unit last year, and cut workers at its studio in 2011.
"This is not necessarily a negative thing," said Michael Morris, an analyst with Davenport and Co who has a buy recommendation on the stock but was not aware of the review.
"It speaks to a fiscally responsible management."
CORPORATE AMERICA CUTS BACK
If Disney does make some cuts, it would be the latest company to warn that costs still need to come under control.
Lilly said last week that sales this year would be flat to slightly higher, but said profit growth would exceed Wall Street estimates on the back of cost controls. In late December, book publisher Scholastic Corp said it too would look for cost savings in the current fiscal year.
Disney and Lilly are far from alone, though. Tech companies in particular are expected to have been hurt by the fourth-quarter uncertainty over the impending "fiscal cliff" of automatic tax increases and spending cuts which led corporate clients to slow or stop spending.
Congress agreed to a deal on January 1 that averted the cliff.
Fear of the cliff may have affected sales across a range of industries, further clouding the growth picture. Retailers are also expected to contend with the fallout of a lackluster holiday season, which could lead to cutbacks.
Thomson Reuters corporate earnings research analyst Greg Harrison said many of the themes that held true in 2012 -- like cost cuts that helped earnings, even as sales stalled -- were likely to carry over into this year.
"In the absence of any fresh catalysts for profits emerging, it may be reasonable to expect that current estimates for earnings growth in the low- to mid-single digits throughout 2013 may shrink, even though analysts believe that the slowest part of the earnings growth is now behind us," Harrison wrote in a preview of the fourth-quarter earnings season.
If a trend is emerging, it should begin to be clear as soon as the next two weeks, as companies start reporting 2012 results and offering up their 2013 outlooks.
STUDIO COULD BE TARGET
The present review, headed by CFO Rasulo, has already identified areas to change in the company's travel policy, said one of the sources. It is also looking at a hiring freeze rather than layoffs, said a second source.
Cuts are most likely at the studio, said two of the three sources, where the strategy has changed to focus on fewer films and rely more on outside producers such as Steven Spielberg's DreamWorks studio, which finances its own films and pays Disney a fee to market and distribute them.
The film strategy shift began when Iger took over as CEO in late 2005. Under Iger, the company purchased "Toy Story" creator Pixar Animation and Marvel, which brought it characters such as "Thor" and "Iron Man" that featured in this summer's blockbuster hit "The Avengers."
Disney completed a $4.06 billion acquisition of "Star Wars" creator George Lucas' Lucasfilm in December, and has said that it will begin producing new installments of the lucrative franchise in 2015, and make a film every two to three years.
Shares in the company fell 2.3 percent on Monday to close at $50.97, sharply underperforming broader markets.

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Exclusive: SEC probes Ernst & Young over audit client lobbying

WASHINGTON/NEW YORK (Reuters) - The Securities and Exchange Commission is investigating whether auditing company Ernst & Young violated auditor rules by letting its lobbying unit perform work for several major audit clients, people familiar with the matter told Reuters.
The SEC inquiry began shortly after Reuters reported in March 2012 that Washington Council Ernst & Young, the E&Y unit, was registered as a lobbyist for several corporate audit clients including Amgen Inc, CVS Caremark Corp and Verizon Communications Inc [ID:nL2E8DL649], according to one of the sources.
The SEC's enforcement division and its Office of the Chief Accountant are looking in to the issue, according to the two sources, who spoke in recent days and who could not be named because the investigation is not public.
It is unclear how far along the probe is, or whether it could result in the SEC filing civil charges against Ernst & Young, one of the world's largest audit and accounting firms.
An SEC spokesman declined to comment.
Ernst & Young spokeswoman Amy Call Well declined to comment on whether the company was being investigated. "All of our services for audit clients undergo considerable scrutiny to confirm they are consistent with applicable rules," she said.
U.S. independence rules bar auditors from serving in an "advocacy role" for audit clients. The goal is to allow auditors to maintain some degree of objectivity regarding the companies they audit, based on the idea that auditors are watchdogs for investors and should not be promoting management's interests.
The SEC's rule does not definitively say whether lobbying could compromise an auditor's independence. It is more focused on barring legal advocacy, such as expert witness testimony.
In interviews last year, former SEC Chief Accountant Jim Kroeker told Reuters that certain lobbying activities could potentially be covered under the general prohibition on advocacy. Kroeker is now an executive at Deloitte, a rival of Ernst & Young.
'ABUNDANTLY CLEAR' LINE
Harvard Business School Professor Max Bazerman said on Monday that it was "abundantly clear" that a firm that is lobbying for a company is no longer capable of independently auditing that company.
Ernst & Young has previously said it complied with independence rules. It also said that it did not act in an advocacy role and that the work performed by its lobbying unit was limited to tax issues.
Tax consulting is a permissible activity under auditor independence rules if it does not involve public advocacy.
About two months after publication of the Reuters story, federal records showed Washington Council Ernst & Young was no longer registered as a lobbyist for Amgen, CVS Caremark or Verizon Communications.
A spokesman for Amgen did not immediately respond to calls seeking comment. Verizon and CVS spokesmen declined to comment.
Ernst & Young also terminated a lobbying relationship with a fourth company, Nomura Holdings Inc, which also used an E&Y affiliate for auditing services.
Obtaining an independent view on the books is the main reason companies are required to hire outside auditors, said Richard Kaplan, law professor at the University of Illinois.
Ernst & Young was suspended in 2004 from accepting new public company audit clients for six months because of alleged violations of independence rules. The suspension stemmed from a joint venture that Ernst had in the 1990s with business software provider PeopleSoft, now part of Oracle Corp, when Ernst was also auditing PeopleSoft's books.
An SEC administrative law judge ordered Ernst & Young to give back $1.7 million in audit fees and issued a cease-and- desist order against future independence violations.

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Target ad campaign puts food in the spotlight

NEW YORK (AP) — Is Target's grocery aisle ready for its close up?
Target is pushing its food, laundry detergent and other groceries in a national ad campaign that pokes fun at high-fashion advertising by featuring models interacting with everyday products.
In one ad, a model in a white dress and high heels struts by blueberry muffin and cake mix boxes that explode in different colors. Then she crushes an egg with her hand.
"Dominate that PTA bake sale," a voiceover whispers. "The Everyday Collection. By Target."
The campaign is part of a larger move by Target, better known for its cheap-chic clothing and home goods, to focus more on its grocery-store aisle. Wal-Mart Stores Inc. and other Target competitors also have been expanding their selection of groceries to lure more customers into stores.
For its part, Target has been expanding its grocery selection, particularly with investments in its "P-Fresh" fresh-food section. Out of its 1,782 stores, about 1100 have an expanded fresh food layout and more than 250 have a full grocery store.
With that push complete, Target decided the time was right to put the focus on its groceries, but in a way that still plays on Target's fashion know how, said chief marketing officer Jeff Jones.
Target, with ad agency Mono in Minneapolis, created the tongue-in-cheek campaign that treats groceries and home products like fashion accessories in a photo shoot. Spending is undisclosed on the ad campaign, but it will include eight TV ads that will run throughout 2013. In addition to TV spots and newspaper inserts, it will include eight TV spots, three radio ads, and digital short films that will run as banner ads online.
One TV ad shows an $11.99 bottle of Tide laundry detergent and a model in a white dress dancing fancifully.
"We all yearn for something," says a voiceover as bubbles float by the model. "And that something is the other sock."
The campaign "creates a foil for what people are used to seeing for grocery advertising," said Jones. "It combines the design ethos and fashion creditability that Target has with the idea that it also has great grocery items at a great price."
Target's ad campaign comes as the retailer faces some challenges.
On Thursday, Target reported that revenue at stores open at least one year was flat in December — a key holiday sales period. The company, based in Minneapolis, blamed the decline in part on weakness in sales of merchandise such as furniture and electronics.
Target, which has been successful in the past by pairing up with upscale designers who create lines of products that it can sell for a limited time, also recently was dinged by bad publicity for its collaboration with posh retailer Neiman Marcus. The line debuted Dec. 1 and included 50 products from 24 designers, including a $70 Marc Jacobs scarf and a $500 Alice + Olivia bike.
But the merchandise was criticized for being too expensive, among other things, and all remaining items in that collection were marked down 70 percent off on Jan. 1. That's quite a reversal from its Missoni collection a year ago, which was so popular demand caused Target's Web site to crash.

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Stocks gain, pushing the S&P 500 to 5-year high

The Standard & Poor's 500 closed at its highest level in five years Friday after a report showed that hiring held up in December, giving stocks an early lift.
The S&P 500 finished up 7.10 points at 1,466.47, its highest close since December 2007.
The index began its descent from a record close of 1,565.15 in October 2007, as the early signs of the financial crisis began to emerge. The index bottomed out in March 2009 at 676.53 before staging a recovery that has seen it more than double in value and move to within 99 points of its all-time peak.
The remarkable recovery has come despite a halting recovery in the U.S. economy as the Federal Reserve provided huge support to the financial system, buying hundreds of billions of dollars' worth of bonds and holding benchmark interest rates near zero. Last month the Fed said it would keep rates low until the unemployment rate improved significantly.
"Without the Federal Reserve doing what they did for the last few years, there would be no way you'd be near any of these levels in the index," said Joe Saluzzi, co-head of equity trading at Themis Trading. "I would call this the Fed-levitating market."
The Dow Jones industrial average finished 43.85 points higher at 13,435.21. It gained 3.8 percent for the week, its biggest weekly advance since June. The Nasdaq closed up 1.09 point at 3,101.66.
Stocks have surged this week after lawmakers passed a bill to avoid a combination of government spending cuts and tax increases that have come to be known as the "fiscal cliff." The law passed late Tuesday night averted that outcome, which could have pushed the economy back into recession.
The Labor Department said U.S. employers added 155,000 jobs in December, showing that hiring held up during the tense fiscal negotiations in Washington. It also said hiring was stronger in November than first thought. The unemployment rate held steady at 7.8 percent.
The jobs report failed to give stocks more of a boost because the number of jobs was exactly in line with analysts' forecasts, said JJ Kinahan, chief derivatives trader for TD Ameritrade.
"The jobs report couldn't have been more in line," Kinahan said. "The market had more to lose than to gain from it."
Among stocks making big moves, Eli Lilly and Co. jumped $1.84, or 3.7 percent, to $51.56 after saying that its earnings will grow more than Wall Street expects, even though the drugmaker will lose U.S. patent protection for two more product types this year.
Walgreen Co., the nation's largest drugstore chain, fell 61 cents, or 1.6 percent, to $37.18 after the company said that a measure of revenue fell more than analysts had expected in December, even as prescription counts continued to recover.
Stocks may also be benefiting as investors adjust their portfolios to favor stocks over bonds, said TD Ameritrade's Kinahan. A multi-year rally in bonds has pushed up prices for the securities and reduced the yield that they offer, in many cases to levels below company dividends.
Goldman Sachs reaffirmed its view that stocks "can be an attractive source of income," and warned that there is a risk that bonds may fall. In a note to clients, the investment bank said that an index of AAA rated corporate bonds offers a yield of just 1.6 percent, less than the S&P 500's dividend yield of 2.2 percent.
The 10-year Treasury note fell, pushing its yield higher. The yield on the 10-year note fell 2 basis points to 1.91 percent. The note's yield has now climbed 52 basis points since falling to its lowest in at least 20 years in July.
Other notable stock moves;
— Accuray Inc. plunged $1.37, or 20 percent, to $5.41 after the radiation oncology equipment company reported weak sales and said it would cut 13 percent of its staff.
— Lululemon, a yoga apparel maker, dropped $3.14, or 4.2 percent, to $71.95 after Credit Suisse predicted slowing momentum and downgraded its stock.
— Finish Line Inc., an athletic footwear and clothing company, fell $1.58, or 8.3 percent, to $17.18 after it reported a small loss after sneaker trends changed and customers didn't take to its new web site launched in November. Analysts had forecast a profit.

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US job market shrugs off fears of 'fiscal cliff'

WASHINGTON (AP) — The U.S. job market proved resilient in December despite fears that a budget impasse in Washington would send the economy over the fiscal cliff and trigger growth-killing tax hikes and spending cuts.
Employers added 155,000 jobs last month, roughly matching the solid but unspectacular monthly pace of the past two years.
The gains announced Friday weren't enough to reduce unemployment, which remained a still-high 7.8 percent. The November rate was revised up a notch from the 7.7 percent the government had originally reported.
The stable pace of December hiring suggested that many employers tuned out the fracas in the nation's capital. The threat wasn't averted until a deal won final passage on New Year's Day.
Rather than hold back until the fiscal cliff was resolved, many employers kept hiring, most likely in anticipation of higher customer demand.
"What would hiring have been if we had not been facing the fiscal cliff in December?" said Robert Kavcic, senior economist at BMO Capital Markets. "We might have seen quite a bit stronger job growth" — something closer to 200,000 a month.
That's an encouraging sign for the job market, because an even bigger budget showdown is looming: Congress must vote to raise the government's $16.4 trillion borrowing limit by late February. If not, the government risks defaulting on its debt. Republicans will likely demand deep spending cuts as the price of raising the debt limit.
Robust hiring in construction and manufacturing drove last month's job increases. Construction firms added 30,000 jobs, the most in 15 months. In part, that increase likely reflected hiring needed to rebuild from Superstorm Sandy. And the housing market's gradual recovery has energized homebuilding. Manufacturers added 25,000 jobs, the most in nine months.
Economists found other hopeful news in the report. Americans were given more work hours in December — an average 34.5 hours a week in December, up from 34.4 in November. And their pay outgrew inflation. Hourly wages rose 7 cents to $23.73 last month, a 2.1 percent increase compared with a year earlier. Over the same period, inflation rose 1.8 percent.
"Perhaps (the) underlying economic performance is accelerating, and even Washington can't screw it up," said Dan Greenhaus, chief global strategist at BTIG.
One company that hired last year and would like to add more jobs in 2013 is Arteriocyte, a Cleveland-based stem-cell therapy and medical device company. But CEO Don Brown is concerned about potential cuts in government spending, which he says could erode Arteriocyte's revenue.
One such cut is a 2 percent reduction in the reimbursements Medicare gives doctors and hospitals. That reduction was delayed by the budget deal reached this week. If the reimbursement cut is imposed later this year, it would lower revenue for the hospitals and surgeons that buy Arteriocyte's advanced products.
"Our entire customer base is unsure about what their reimbursement landscape is going to be," Brown said.
The Obama administration's health care reform law also imposed a 2.2 percent sales tax on medical devices. Brown estimates that will cost his company $400,000. He had hoped the tax would be eliminated as part of a fiscal cliff agreement.
Arteriocyte hired 10 workers last year and now employs 76. The new hires included research scientists, two marketing specialists and a sales representative. Brown hopes to make five to 10 additional hires this year, but he might be unable to do so if the Medicare cut takes effect.
Despite last month's hiring gains, Friday's report pointed to some weakness in the job market. For example, the number of unemployed actually rose 164,000 to 12.2 million. About 192,000 people entered the work force last month, but most did not find jobs.
The unemployment numbers come from a government survey of households. The number of jobs added comes from a separate survey of businesses.
A broader category that includes not only the unemployed but also part-time workers who want full-time jobs and people who have given up looking for work was unchanged in December at 22.7 million.
The government revised up its estimates of job growth for October and November by 14,000 jobs. October's job increases were revised down from 138,000 to 137,000 but November's were revised up from 146,000 to 161,000.
Economists said the pace of hiring almost certainly isn't strong enough to lead the Federal Reserve to cut short its bond-buying program. The Fed is spending $85 billion a month on bond purchases to try to drive down long-term borrowing costs and stimulate economic growth.
The job market is being held back by government cutbacks. Governments at all levels cut 13,000 jobs in December. Since the Great Recession ended in mid-2009, governments have eliminated 645,000 jobs — an average of nearly 15,400 a month.
By contrast, during the recoveries from the recessions of 1990-1991 and 2001, governments added an average of more than 15,000 jobs a month. If governments were hiring at that pace instead of slashing payrolls, the U.S economy would be generating more than 180,000 jobs a month.
Instead, for two full years, monthly job growth has remained stuck at a tepid pace: It averaged 153,000 in both 2011 and 2012. That isn't enough to lower unemployment to what economists regard as a "normal" rate of 6 percent or less. The Federal Reserve doesn't expect unemployment to drop that low until after 2015.
The economy has replaced just 4.8 million, or 54 percent, of the 8.8 million jobs lost between January 2008, when the job market peaked, and February 2010, when it bottomed during the recession. It has been, by far, the weakest jobs recovery since the Great Depression of the 1930s.
"A status quo report in today's labor market represents an ongoing jobs crisis," says Heidi Shierholz, an economist at the liberal Economic Policy Institute.
Still, the economy has been showing broad improvement. Layoffs are down. Banks are lending a bit more freely. Companies have built up a near-record $1.7 trillion in cash. Consumers have cut their debts to pre-recession levels. Europe has avoided a financial catastrophe.
The once-depressed housing market is rebounding. A gauge of U.S. service firms' business activity expanded in December by the most in nearly a year. Manufacturing is benefiting from the best auto sales in five years. And Americans spent more at the end of the crucial holiday shopping season.
"There is little doubt that the seeds of faster growth are being planted," James Marple, an economist at TD Bank, said in a note to clients.
That said, most economists expect slight improvement at best in hiring this year. A 2 percentage point cut in the Social Security tax expired Jan. 1. That means a household with income of about $50,000 will have about $1,000 less to spend. A household with two high-paid workers will have up to $4,500 less.
And the government may impose spending cuts this year.
Higher taxes and less government spending, along with uncertainty about future budget fights, could restrain growth and hiring.
That "likely means acceleration in the labor market will remain elusive for the time being," said Ellen Zentner, an economist at Nomura Securities.

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Hurricane Sandy Victims Find Refuge on Timeshare Marketplace RedWeek.com

Timeshares are not only for fun vacation getaways, as evidenced by the story of RedWeek.com members Bob and Jody; left homeless by Hurricane Sandy last month. With the holidays approaching, Bob and Judy turned to leading timeshare marketplace RedWeek.com to secure a timeshare rental in New York City.

Seattle, WA (PRWEB) December 19, 2012
Timeshares are not only for fun vacation getaways, as evidenced by the story of RedWeek.com members Bob and Jody; left homeless by Hurricane Sandy last month.
Bob and Judy are one of the many families displaced by the devastation of Hurricane Sandy. With their Long Island home flooded and area hotels at capacity; the Bob and Judy began looking for a short-term rental property to no avail. Frustrated and exhausted, they began looking at every alternative for a place to live.
As timeshare owners, Bob and Judy knew the advantages of timesharing and had recently used leading timeshare marketplace RedWeek.com to rent out their own Aruba timeshare. Homeless and with the holidays approaching, they turned to RedWeek.com and began searching for timeshare rentals at The Manhattan Club resort in New York City.
“We decided to rent multiple units at the Manhattan Club so that we could spend the holiday all together in Manhattan,” said Jody. “When my husband and I checked in to the Manhattan Club, it was so luxurious that I actually began tearing up.”
Unlike standard hotels, timeshares offer home-like accommodations with multiple bedrooms, full kitchens or kitchenettes, and living and dining areas. Renting a timeshare directly from an owner is often cheaper than staying at a hotel, and the resorts offer the same hotel amenities such as pools, exercise facilities, reception areas, and concierge services.
“I have only good things to say about RedWeek and the Manhattan Club,” said Jody. “I plan to use RedWeek again when I need a vacation - the value and the superior accommodations were just more than I could have hoped for.”
To learn more about RedWeek.com or timesharing visit http://www.redweek.com.
About RedWeek.com:
RedWeek® is a registered trademark of RedWeek, Inc. RedWeek.com is a member-supported marketplace for timeshare rentals and resales, and also provides a full-service timeshare resale offering. You can find reviews, ratings, prices, availability, full-service exchange, and complete resort descriptions for all timeshare resorts to make vacation selection easier. Boasting an A+ Better Business Bureau rating, RedWeek has more than 1.5 million registered users and includes 5,000 timeshare resorts worldwide.

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Pure-Ecommerce.com Introduces Its New 2013 Premier Internet Business Site Collection Featuring Upgraded Designs, Larger Product Counts, and Video and Mobile Marketing

14 New Pure-Ecommerce.com Internet Businesses for Sale in the Most Popular Niche Markets in the Online Marketplace

CARY, NC (PRWEB) December 19, 2012
Pure-Ecommerce.com introduces its 2013 Premier Internet Business Site Collection. This incredible new collection of 14 internet businesses for sale has been created in some of the most popular niche markets in the online marketplace. The Collection includes: eBaseballOutlet.com, eBasketballOutlet.com, EverythingDogShop.com, BlueSkyBeachStore.com, EveryStyleGift.com, eSoccerOutlet.com, ShootandScoreSports.com, BlackandWhiteDecorShop.com, GroovyGreenToys.com, ClassActCat.com, StudioDecorBoutique.com, GlassofWinePlease.com, AllAmericanMadePets.com, and TheModernBabyNursery.com. Pure-Ecommerce.com will continuously be introducing new sites to the Collection throughout 2013. It will also be offering more “sister” sites (such as eBaseballOutlet.com, eBasketballOutlet.com and eSoccerOutlet.com) to help clients expand their brand presence in the online marketplace by owning multiple internet businesses.
All Pure-Ecommerce internet businesses for sale come with a high quality, professionally designed site, as well as a 10- step training program and 40 hours of consulting to help burgeoning ecommerce entrepreneurs each step of the way! Every product featured on this site is drop shipped so no inventory is needed. It also allows for less overhead and gives owners more flexibility in managing their business and schedule. These sites feature upgraded designs as well as the addition of larger product counts, as well as Video Marketing and a Marketing Application and Site!
Pure-Ecommerce strives to be at the forefront of technology and incorporate the latest applications in all its internet business offerings. Varner wants her small business ecommerce clients to have all the latest and greatest technologies available to large ecommerce retailers. Pure-Ecommerce CEO Jennifer Varner says, “Mobile and Video Marketing are vital to any ecommerce strategy and help the e-retailer stay competitive, increase sales, drive up SEO rankings, build customer loyalty, and much more.” According to digital marketing technology company Monetate the growth in traffic on leading ecommerce websites over the past year has grown 103% with nearly 86 million Americans now shopping on their smartphones. And Practical Ecommerce says “increasing numbers of online retailers will be using video in 2013 to increase sales, find new potential customers, and build brand relationships.” Through personalized consultation and 24/7 access to an E-Learning Library, Varner and her team help clients understand how to use mobile and video marketing and design strategies to be best positioned to capitalize on these shifting market dynamics.
Pure-Ecommerce.com celebrates its sixth anniversary in 2013 and has helped over 550 entrepreneurs in the U.S. and Canada start their own internet businesses. CEO Jennifer Varner founded Pure-Ecommerce after gaining experience and success through starting one of the largest online maternity clothing stores, BellaBluMaternity.com. After selling her company, she began helping others realize their dreams of owning a business.
Buying a business from Pure-Ecommerce.com allows a budding entrepreneur to step into the business of their dreams with minimal start-up costs and low monthly and have someone personally mentor them through all aspects of setting up, running, and then growing an online business. Best of all, it provides them the opportunity to have a flexible schedule and to work when they want, where they want. A Pure-Ecommerce business can be run on a part-time basis while someone is still working or as a full-time business, depending upon the time one puts into growing their business. Pure-Ecommerce’s turnkey sites are especially attractive to budding mompreneurs and entrepreneurs; boomers looking for additional income to supplement their retirement; people looking for work-life balance; and the unemployed wishing to be their own boss and create their own destiny.
Pure-Ecommerce has been featured in several national magazines and websites such as Entrepreneur, Forbes and WomenEntrepreneur.com, as well as in national newspapers and on TV news programs. Pure-Ecommerce has also been selected as one of the top 50 Women-Owned businesses by Start-up Nation.

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Escape Villas Offers Family Vacation Rentals for the Holidays

Trade the cold winter weather in North America for a tropical Christmas vacation in Costa Rica, where travelers can spend their holidays enjoying outdoor family adventures in the comfort of an Escape Villa family vacation rental.

Manuel Antonio, Costa Rica (PRWEB) December 19, 2012
As the holiday season approaches, more Americans are planning to travel for Christmas compared to 2011, according to a report by HomeAway, Inc. – an online vacation rental marketplace. The number of families traveling in December is expected to nearly double, rising from 22 percent in 2011 to 40 percent this year.
And while everyone looks forward to a “White Christmas,” some families are trading in blankets of fresh snow for the pristine white sands of a tropical beach. Costa Rica has long been a sun-kissed haven for vacationers seeking outdoor thrills and wildlife encounters, and its balmy weather is a welcome respite during the blustery winter season.
Escape Villas, Costa Rica’s leading vacation rental company, sees a ten-fold increase in reservations during the holiday season, with the majority of bookings made by large family groups. “One of the terrific features about vacation rentals is that extended families can stay together with all the creature comforts of home – but with a lot more space and privacy. They have their own swimming pool, kitchen, laundry facilities and an array of other amenities at no extra charge," says Escape Villas spokesperson, Sara Hopkins
With an impressive portfolio of villas and vacation rentals in some of Costa Rica’s most family-friendly locales, including Manuel Antonio, Tamarindo and Flamingo, Escape Villas caters to those seeking plenty of warm sunshine with easy access to national parks, beaches, nature tours and vibrant nightlife. According to Ms. Hopkins, most guests book their holiday beach vacation rentals at least six months in advance, sometimes even earlier.
On why families choose Escape Villas for their holiday plans, Sara Hopkins explains, “A Christmas vacation in Costa Rica takes the stress out of the holidays, as families can enjoy each other’s company in one of the most spectacular places in the world. The kids never forget the year Santa visited their beachfront home, where every day promised a new and exciting adventure.” Another built-in benefit to their vacation rentals: private chef services. No more slaving in the kitchen, as families can relax and spend time together while someone else prepares a home-cooked holiday feast.
When considering a holiday rental, timing is everything. Costa Rica has two tourism periods: a high season that lasts from December-April and corresponds with the country’s dry weather. And a low season, which runs from May-October, during Costa Rica’s rainy months. December and January are known for their fabulous climate, with cool breezes and average temperatures hovering around 82 F.
While prices may be steeper during this peak time, travelers are willing to shell out extra funds to reap the season’s many rewards, according to Escape Villas’ reservations manager. Recent statistics from a HomeAway, Inc. poll reveal that 31 percent of travelers are booking a vacation rental this December, and 21 percent say they’d pay more for more spacious accommodations, especially those that included a pool or spa tub, kitchen and laundry facilities.
Costa Rica has been a treasured vacation destination for many tourists during the festive holiday months. With its temperate climate, proximity to North America, and wealth of adventure activities, the perks of Christmas in paradise are many. And with more airlines offering direct flights into San Jose and Liberia, travelers have new budget-conscious options for booking their vacation. This past October, Canadian carrier WestJet announced non-stop seasonal service from Toronto to Guanacaste’s Liberia terminal. Other low-cost airlines including Spirit, JetBlue and Frontier also provide direct flights from major U.S. cities like New York, Denver and Orlando.
If the current travel trend continues, the team at Escape Villas anticipates another 10 percent increase in their Costa Rica vacation rental bookings for December 2013. Ms. Hopkins confirms “Our experienced concierge is committed to providing the tropical holiday vacation of a lifetime, with engaging activities for the whole family, from zip-line canopy tours and horseback rides to sunset sailing excursions.”
Families can celebrate the holidays in contemporary rainforest villas – where playful monkeys are regular visitors – to luxurious oceanfront homes with sublime views. Consider the many advantages of a Christmas vacation in Costa Rica with Escape Villas. Feliz Navidad!

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Shiny Reputation Highlights Airbnb for their Focus on Local Neighborhood Information

Shiny Reputation proclaims their opinion on the recent launch of Airbnb’s Neighborhoods program, in which they are looking to narrow the focus of their site to concentrate on services in local neighborhoods where rental properties are located.

San Francisco, CA (PRWEB) December 19, 2012
Shiny Reputation has issued an announcement about the launch of the Airbnb Neighborhood program, which seeks to give users of its online holiday lodging rental marketplace more information about the areas in which the lodging is located.
The editor of ShinyReputation.com stated, “Local businesses will benefit greatly from the launch of neighborhood ratings by Airbnb, in which local neighborhoods are rated based on transportation, services, quality of local restaurants and more. This will create an all in one service for renters. The service, which is in its trial stage in San Francisco, will lessen Airbnb’s members need to use services such as Yelp. We still see Yelp going strong and always tell businesses that improving your reputation online is key to developing the business relationship with patrons. The neighborhoods service is another resource.”
Airbnb is an online marketplace in which people can offer their homes, apartments, and other types of lodging for rent directly to travelers, bypassing hotels and apartment-finding services. Airbnb was founded in San Francisco in 2008, and has since grown to host more than 200,000 unique listings in 26,000 cities in 192 countries across the globe. On Airbnb, individuals can search for lodgings available in a certain city for a certain timeframe, and then choose from the listings on offer by private renters in that location. Payment is done through the website itself, while all interactions between renters and lodgers are done on a personal basis. The Neighborhoods program is an attempt to give travelers more information about specific local areas of cities they travel to and choose lodgings in the area of their choosing. Currently the program is for information purposes only, and is not yet a channel for marketing online. “That being said the photos used to highlight the local businesses on the neighborhoods tool are amazing. Most travel savvy individuals will seek out those businesses’ websites. It is always recommended that server uptime monitoring receive some attention as we are primarily connected via the internet.”
Airbnb has launched the Neighborhoods program in this city in which it is headquartered, San Francisco, California. San Francisco is the financial, cultural, and technological capital of the West Coast of the United States. With over 800,000 residents in the city itself and more than 7.5 million in the metropolitan San Francisco Bay Area, it is one of the largest and most important cities in the US. The San Francisco Bay Area is known for being the home of Silicon Valley, and the center of technological innovation in the US. Some of the tech companies with headquarters in the area include Apple Computers, Adobe, HP, Google, and Intel.
The launch of Airbnb’s local Neighborhood program will give local businesses further exposure within this large community of travelers, and possibly increase business. Additionally, it will position Airbnb as a rival to Yelp when looking at local businesses and determining where to stay, and what to do. It has yet to be determined if the program will be successful, but local businesses should be entranced by the thought of become visible to a new pool of potential customers.

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KSL Cars Adds Contact At Once! Live Chat in Ads

Utah Dealerships Can Integrate Chat to Connect with Potential Buyers

Atlanta (PRWEB) December 19, 2012
Contact At Once!, the leading live chat provider connecting online and mobile car shoppers to auto dealers, today announced that it has been selected by KSL Cars, Utah’s leading online marketplace, as its exclusive provider of live chat for automotive advertising. KSL Cars will bundle Contact At Once! in its auto dealer packages.
Contact At Once! live chat is used by over 10,000 automobile dealerships and the world’s busiest online automotive shopping sites. Dealers who use Contact At Once! say they typically experience a 25% increase in the number of connections with website visitors.
“Contact At Once! was the first to put live chat in online automotive classifieds and they have unique features that make the software especially well-suited for connecting thousands of shoppers with dealers through chat in ads,” says Eric Bright, KSL’s Vice-President of E-Commerce.
“More and more shoppers prefer text and chat to old-fashioned lead forms and they like the instant access, as well as the convenience,” says Lloyd Hecht, Contact At Once! Director, Business Development. Advertising with mobile and desktop text and chat options can draw more attention and appeal to shoppers who might be reluctant to call or email.”
KSL Cars is the leading provider of auto classifieds in Utah, serving more than 45,000 car shoppers per month. Another factor in choosing Contact At Once! was ease of use and implementation, says Bright. “Our advertisers can be chatting with potential car buyers in a matter of minutes.”
About Contact At Once!

Contact At Once! pioneered the use of website chat in automotive advertising, enabling instant connections between online shoppers and dealerships through search websites, dealership websites, social media and mobile sites. More than 10,000 customers rely on Contact At Once! chat to drive incremental sales opportunities and increase return on advertising investments. For more information, visit http://www.autodealerchat.com.
About KSL

KSL.com is owned and operated by Deseret Digital Media (DDM), and powers the largest online marketplace in Utah - including auto, real estate, deals and local search verticals. In total, Deseret Digital Media properties attract more than 5.5 million unique visitors and serve nearly 300 million page views per month. The DDM network of web sites includes KSL.com, Deseretnews.com, DeseretBook.com, MormonTimes.com, LDSChurchNews.com, FM100.com, OK.com and 1035TheArrow.com. Deseret Digital Media's two-part vision is to become the largest and most compelling regional commerce marketplace in the United States and to also become a world-leading, values-based digital content marketplace. Deseret Digital Media is a part of Deseret Media Companies.

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Twitter offers users scrapbook of past tweets

SAN FRANCISCO (AP) — Twitter is offering its more than 200 million users a chance to keep a digital scrapbook of all their tweets.
The tool, announced this week, is designed to make it easier for people to review all their activity on Twitter's trend-setting messaging service.
When it's available, the downloading option will appear at the bottom of each user's settings menu.
Twitter, which is based in San Francisco, said it may take a several weeks, or even months, before everyone gets the feature.
After a records request is made, users will receive an email on how to download their personal archive. For Twitter's earliest users, the records date back to 2006 when Twitter started.
Twitter users already have been able to peruse their past tweets by navigating to their personal profile page. But going that route is more cumbersome because it requires scrolling down a page that can sometimes be slow to display additional tweets.
The company said that users who download their entire histories should find it easier to search for particular tweets and organize the messages — by month, for example.
The new tool also should serve as a reminder that a copy of everything people have tweeted still resides on Twitter's computers.
Other widely used services, such as Facebook's popular social network, also have been creating digital portraits of people's lives as more content gets posted on their sites. Facebook gives its more than 1 billon users the option to download everything they have shared on the service. It has become easier this year for Facebook users to look at their past musings and photos as the service converted people's profiles into a timeline that sorts content by the month it was shared.
Path, another social network founded by former Facebook executive Dave Morin, is also trying to position itself as a treasure chest of memories. A new feature released Thursday in an update to Path's' mobile app allows users to search their past posts on devices running on Apple and Android software. The content can be quickly retrieved by typing in their names' friends, a specific event or time of year, or just a phrase encapsulating a vacation highlight, such as "hiking in Kauai.

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Facebook tests charging users to send certain messages

SAN FRANCISCO (Reuters) - Facebook Inc unveiled a test on Thursday that charges users to send certain types of messages through the social network, the latest example of the company looking for new sources of revenue and profit.
Until now, Facebook's messaging system sends the most-relevant messages, including those from users' Facebook friends, into an Inbox and siphons off less-relevant messages, such as potential spam, in an "Other" folder.
"Today we're starting a small experiment to test the usefulness of economic signals to determine relevance," Facebook said. "This test will give a small number of people the option to pay to have a message routed to the 'Inbox' rather than the 'Other' folder of a recipient that they are not connected with."
A Facebook spokesman said the charge for the test is $1 per message, but added that the company is still looking for the "optimum" price. Users can only receive one of these paid, re-routed messages per week, he noted.
The company said its test service may be useful in certain situations, such as allowing users to send a message to someone they heard speak at an event but are not friends with, or contacting someone about a job opportunity.
Facebook, which went public earlier this year, is under pressure from Wall Street to find new sources of revenue and profit. The company has responded with a series of new services and tests in recent months. In September, the company said it would start charging merchants to run offers on its social network.
The test messaging service is similar to the InMail service from LinkedIn Corp, the professional networking rival to Facebook, which lets users with high-end subscriptions send messages to other LinkedIn members outside their networks.
"For the receiver, this test allows them to hear from people who have an important message to send them," Facebook added.

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Twitter post offers clue to The Civil Wars' future

NASHVILLE, Tenn. (AP) — While there still remain questions about the future of The Civil Wars, there's new music on the way.
Joy Williams, one half of the Grammy Award-winning duo with John Paul White, said Thursday during a Twitter chat that she was in the studio listening to new Civil Wars songs.
It's a tantalizing clue to the future of the group, which appeared in doubt when a European tour unraveled last month due to "irreconcilable differences."
At the time, the duo said it hoped to release an album in 2013. It's not clear if Williams was referring Thursday to music for a new album or for a documentary score they have composed with T Bone Burnett. They're also set to release an "Unplugged" session on iTunes on Jan. 15.
Nate Yetton, the group's manager and Williams' husband, had no comment — though he has supplied a few hints of his own by posting pictures of recording sessions on his Instagram account recently. The duo announced last summer it would be working with Charlie Peacock, who produced its gold-selling debut "Barton Hollow." The photos do not show Williams or White, but one includes violin player Odessa Rose.
Rose says in an Instagram post: "Playing on the new Civil Wars record... Beautiful sounds."
Even with its future in doubt, the duo continues to gather accolades. Williams and White are up for a Golden Globe on Jan. 13, and two Grammy Awards on Feb. 10, for their "The Hunger Games" soundtrack collaboration "Safe & Sound" with Taylor Swift.
Williams' comments came during an installment of an artist interview series with Alison Sudol of A Fine Frenzy sponsored by The Recording Academy.

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Facebook tests charging to route messages to inbox

SAN FRANCISCO (AP) — Facebook says it is testing a service that will charge users $1 to guarantee that messages they send to people they are not connected to arrive in users' inboxes, rather than in an often-ignored folder called "other."
The "other" folder is where Facebook routes messages it deems less relevant. Not quite spam, these include messages from people you most likely don't know, based on Facebook's reading of your social connections. Many users ignore this folder.
Now, users will be able to pay $1 to route their messages to non-friends. Facebook said Thursday that it is testing the service with a small percentage of individuals — not businesses — in the U.S.
The company says charging for messages could help discourage spammers.

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Facebook tests $1 fee for messages to non-friends

SAN FRANCISCO (AP) — Facebook says it is testing a service that will charge users $1 to guarantee that messages they send to people they are not connected to arrive in users' inboxes, rather than in an often-ignored folder called "other."
Launched in 2011, the "other" folder is where Facebook routes messages it deems less relevant. Not quite spam, these include messages from people you most likely don't know, based on Facebook's reading of your social connections. Many users ignore this folder.
Now, users will be able to pay $1 to route their messages to non-friends. Facebook said Thursday that it is testing the service with a small percentage of individuals — not businesses — in the U.S.
"For example, if you want to send a message to someone you heard speak at an event but are not friends with, or if you want to message someone about a job opportunity, you can use this feature to reach their Inbox," Facebook said in an online post. "For the receiver, this test allows them to hear from people who have an important message to send them."
The company says charging for messages could help discourage spammers.
In October, Facebook unveiled another feature that lets users pay if they want more people to read their updates. For $7, users can promote a post to their friends, just as advertisers do.

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Sun Life sells U.S. annuity business, shares drop

TORONTO (Reuters) - Sun Life Financial Inc will sell its U.S. annuity business for $1.35 billion to a firm connected to Guggenheim Partners in a deal that should reduce the exposure of the insurer's earnings to market swings and boost its cash levels.
While the deal could bring long-term benefits to Sun Life, whose earnings have been derailed by wild market swings during recent years, investors pulled the company's shares down by nearly 4 percent as the financial terms fell short of initial expectations.
"The stock's sort of correcting back because the deal isn't quite as big a windfall as I think the market was anticipating," said National Bank financial analyst Peter Routledge.
Delaware Life Holdings, owned by certain Guggenheim clients and shareholders, will rename itself Delaware Life Insurance Co following the cash purchase. Guggenheim will provide investment management services to the new company.
Sun Life, Canada's No. 3 insurer, said last year it would stop selling variable annuities and individual life products in the United States to focus more on group insurance and voluntary benefits.
Variable annuities - retirement products that guarantee the investor a minimum monthly payment - became a source of earnings volatility for Sun Life in the wake of the 2008 financial crisis. That is because low interest rates and Canadian accounting rules force insurers to take upfront losses on products that will not come due for years.
"The business makes money, but not enough," said Routledge.
Weak equity markets and low bond yields sent Sun Life's profit down 87.5 percent during the second quarter of 2012 and caused losses during the third and fourth quarters of 2011.
EARNINGS HIT
The deal will cut Sun Life's profit by 22 Canadian cents a share annually and reduce book value by C$950 million ($965 million), the company said in a statement. According to Thomson Reuters I/B/E/S, Sun Life was expected to earn C$2.53 a share on a net basis in 2013.
The deal has also prompted Sun Life to take a second look at its 2015 financial targets, which include a goal of C$2 billion in operating profit.
In an interview, Sun Life Chief Executive Dean Connor said he would update the market on the targets after the deal closes, which is expected during the second quarter next year.
"I'm not saying we will necessarily reduce them. I'm not saying we will necessarily leave them as they are, because we don't know yet," he said.
The deal is also expected to reduce the company's earnings sensitivity to equity markets by 50 percent and its sensitivity to interest rates by 35 percent, compared with estimates on September 30.
It will raise Sun Life's cash position to C$1.9 billion.
"Over time, we'll redeploy that cash to fund growth," said Connor. He said the growth could include acquisitions on the "smaller end of the spectrum."
Sun Life, which also owns U.S. asset manager MFS Investment Management, is targeting growth in its Asian business.
SHARES DOWN
Sun Life shares, which have outperformed its rivals with a 47 percent year-to-date rise coming into Monday's session, ended down 3.9 percent at C$26.74 on the Toronto Stock Exchange. Despite the strong rise this year, the stock still trades at less than half its all-time high set in 2007.
Robert Sedran, an analyst at CIBC World Markets, said in a research note that the earnings and book value reductions were worse than he had expected.
"Moreover, while the decline in the earnings sensitivity to market variables improves the risk-reward profile, we did not view those sensitivities as excessive to begin with," he said.
However, he said the deal will free up time and capital that would otherwise have been engaged in what is essentially a closed business, which is a positive.
Morgan Stanley & Co advised Sun Life on the transaction financials.
Law firm Debevoise & Plimpton LLP was legal adviser to Sun Life, while Skadden, Arps, Slate, Meagher & Flom advised Guggenheim Partners.

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