Wall Street ends flat after late fade; S&P up for fourth month

NEW YORK (Reuters) - Stocks ended flat on Thursday, giving up modest gains late in the session, denying the Dow a chance to inch closer to all-time highs.

The S&P 500 still managed to close out February with a fourth straight month of gains. JC Penney Co Inc was the day's biggest loser, falling 17 percent to $17.57 after the department store operator reported a steep drop in sales.

The U.S. economy grew slightly in the fourth quarter, a turnaround from an earlier estimate showing contraction, and a drop in new claims for unemployment benefits last week added to a batch of data suggesting the economy continues its sluggish improvement.

The Dow was within striking distance of its record high after a year-to-date advance of more than 7 percent. The Dow's record closing high, set on October 9, 2007, stands at 14,164.53, while the Dow's intraday record high, set on October 11, 2007, stands at 14,198.10.

The Dow Jones Transportation Average <.djt>, seen as a bet on future growth, is up 12.9 percent this year, and the 20-stock index hit a record intraday high earlier on Thursday.

"To push through to new highs, you would have to see consistent positive economic data in the U.S. and have Europe stabilize - those are two pretty big requirements," said Jeff Morris, head of U.S. equities at Standard Life Investments in Boston.

"It wouldn't surprise me to see us bounce around as we have the past couple of weeks," Morris added.

Volume was low for most of the session until quarterly index-rebalancing activity hit the tape at the very close of trading.

After a strong January with gains of more than 5 percent, both the Dow and the S&P 500 found gains tougher to come by in February. Minutes from the Federal Reserve's January meeting sparked concerns that the central bank may pull back on its stimulus measures sooner than expected, while looming U.S. budget cuts and turbulent Italian elections tempered investors' aggressiveness.

But concerns about Fed policy were eased by testimony from Fed Chairman Ben Bernanke before a congressional committee earlier this week, as he defended the policy of buying bonds to keep interest rates low to boost growth, despite worries some have about possible inflation.

The Dow Jones industrial average <.dji> shed 20.88 points, or 0.15 percent, to 14,054.49 at the close. The Standard & Poor's 500 Index <.spx> lost 1.31 points, or 0.09 percent, to 1,514.68. The Nasdaq Composite Index <.ixic> fell 2.07 points, or 0.07 percent, to end at 3,160.19.

For the month, the Dow rose 1.4 percent, the S&P 500 gained 1.1 percent and the Nasdaq advanced 0.6 percent.

Limited Brands and Netflix ranked among the best-performing consumer stocks. Shares of Limited Brands, the parent of retailers Victoria's Secret and Bath & Body Works, gained 2.3 percent to $45.52. The stock of video streaming service Netflix climbed 2 percent to $$188.08.

In contrast, shares of Groupon Inc fell on weak revenue, with the daily deals company's tumbling 24.3 percent to $4.53.

Cablevision slumped 9.6 percent to $13.99 after the cable provider took a $100 million hit on costs related to Superstorm Sandy and posted deeper video customer losses than expected.

On a positive note, Mylan Inc gained 3.6 percent to $29.61 after the generic drugmaker posted a 25 percent rise in fourth-quarter profit and said it will buy a unit of India's Strides Arcolab Ltd.

Investors were keeping an eye on the debate in Washington over U.S. government budget cuts that will take effect starting Friday if lawmakers fail to reach agreement on spending and taxes. President Barack Obama and Republican congressional leaders arranged last-ditch talks to prevent the cuts, but expectations were low that any deal would emerge.

Volume was modest with about 6.81 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq, slightly above the daily average of 6.46 billion.

Advancing stocks slightly outnumbered declining ones on the NYSE by 1,518 to 1,446. On the Nasdaq, the decliners had a slight edge, with 1,247 shares falling and 1,201 stocks rising.

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)

Read More..

AP Source: Salary cap increases to $123 million

The NFL salary cap for the 2013 season will rise to $123 million from $120.6 million in 2012, an NFL Players Association official familiar with negotiations over the figure told The Associated Press on Thursday.

The official spoke to the AP on condition of anonymity because no formal announcement had been made.

The increase, which is larger than some in the NFL had anticipated, is a result of greater-than-expected revenues last season — primarily from NFL Properties — and a jump in projected league revenues, according to the official.

The league and the union work together to establish a cap number, based on parameters established under their collective bargaining agreement. The current 10-year CBA was signed in August 2011, ending the owners' lockout of the players.

One of the main areas of contention during that labor dispute was how to divide the more than $9 billion in annual league revenues, a figure that will keep rising, particularly once the NFL's new television contracts kick in for the 2014 season. Those additional revenues will be reflected in the salary cap for 2015, which is expected to see a more significant increase than the roughly 2 percent uptick from 2012 to 2013.

There was no salary cap in 2010, the final year of the old CBA. In 2011, the first year under the present deal, the figure was $120.375 million.

Over the next four seasons, from 2013-16, each of the NFL's 32 clubs will be required to spend an average of at least 89 percent of the salary cap in contract dollars, while overall league spending must average 95 percent in that span. That sort of minimum cash spending did not exist under the old CBA.

Another significant change under this agreement: owners and players divide types of revenues at different rates. Players receive 55 percent of revenue from the league's national TV and other media deals; 45 percent of licensing and national sponsorship deals, including NFL Properties; and 40 percent of local club revenues.

Read More..

Syria war is everybody's problem

STORY HIGHLIGHTS

• France considers sending Syrian rebels night-vision gear and body armor, a source says


• Britain's foreign secretary says the UK will announce new aid soon


• United States will send non-lethal aid to rebels, plus $60 million in administrative aid

Rome (CNN) -- The United States promised Thursday to send food and medical supplies -- but not weapons -- to rebels in the first such move since the conflict began two years ago.

At the same time, European nations began to explore how to strengthen rebel fighters short of arming them after a European Council decision allowing aid for civilian protection.

U.S. Secretary of State John Kerry said the aid would help fighters in their effort to topple Syrian President Bashar al-Assad. The conflict has claimed more than 60,000 lives, laid waste to large portions of the country and created an enormous humanitarian crisis as refugees flee the fighting.

The fighting also threatens to widen into a regional crisis and has raised concerns that Hezbollah, Iran or others could gain control in Damascus after al-Assad's government falls.

"The United States' decision to take further steps now is the result of the continued brutality of a superior armed force propped up by foreign fighters from Iran and Hezbollah, all of which threatens to destroy Syria," Kerry said after meeting opposition leaders in Rome.

He did not say how much aid, but did announce that the United States would separately give $60 million to local groups working with the opposition Syrian National Council to provide political administration and basic services in rebel-controlled areas of Syria.

READ: U.S. weighing nonlethal aid to Syrian opposition

That's on top of $50 million in similar aid the United States has previously pledged to the council, as well as $385 million in humanitarian assistance, Kerry said.

"This funding will allow the opposition to reach out and help the local councils to be able to rebuild in their liberated areas of Syria so that they can provide basic services to people who so often lack access today to medical care, to food, to sanitation," he said.

Islamist Influence

The aid represents, in part, an effort to hem in radical Islamist groups vying for influence in Syria after the fall of al-Assad, a senior State Department official told CNN.

"If the Syrian opposition coalition can't touch, improve and heal the lives of Syrians in those places that have been freed, then extremists will step in and do it," the official said.

Sheikh Ahmed Moaz al-Khatib, president of the Syrian National Council, said concerns about Islamist influence were overstated.

"We stand against every radical belief that aims to target Syria's diverse social and religious fabric," he said.

READ: Inside Syria: Exclusive look at pro-Assad Christian militia

U.S. officials hope the aid will help the coalition show what it can do and encourage al-Assad supporters to "peel away from him" and help end the fighting, the official said.

The opposition council will decide where the money goes, Kerry said.

But the United States will send technical advisers through its partners to the group's Cairo headquarters to ensure the aid is used properly, the senior State Department official said.

Additional aid possible

The European Council carved out an exception in its sanctions against Syria on Thursday to allow for the transfer of nonlethal equipment and technical assistance for civilian protection only.

The council did not specify what kind of equipment could be involved.

British Foreign Secretary William Hague said Friday on Twitter that his country would pledge new aid because "we cannot stand still while the crisis worsens and thousands of lives are at stake."

A diplomatic official at the French Foreign Ministry told CNN that France is studying the possibility of supplying night-vision equipment or body armor.

In the United States, President Barack Obama is thinking about training rebels and equipping them with defensive gear such as night-vision goggles, body armor and military vehicles, sources familiar with the discussions said.

The training would help rebels decide how to use their resources, strategize and perhaps train a police force to take over after al-Assad's fall, one of the sources said.

READ: Syrian army in Homs is showing strains of war

Kerry did not announce that sort of aid Thursday, but said the United States and other countries backing the rebels would "continue to consult with each other on an urgent basis."

An official told reporters that the opposition has raised a number of needs in the Rome meetings and the administration will continue to "keep those under review."

"We will do this with vetted individuals, vetted units, so it has to be done carefully and appropriately," the official said.

Humanitarian crisis

Meanwhile, the bloodshed continued. On Thursday, 98 people were killed across Syria, including 35 in Damascus and its suburbs, said the Local Coordination Committees for Syria, a network of opposition activists.

The conflict began with demands for political reform after the Arab Spring movement that swept the Middle East and Africa, but devolved into civil war when the al-Assad regime cracked down on demonstrators.

In addition to the 60,000 people who have died since the fighting began in March 2011, another 940,000 have fled the country and more than 10% of Syria's 20 million residents have been forced to move elsewhere inside the country, the Office of the United Nations High Commissioner for Refugees said.

The outpouring of refugees threatens to overwhelm the ability of host nations to provide for their needs, Assistant High Commissioner Erika Feller told the U.N. Human Rights Council on Tuesday.

READ: Syrian war is everybody's problem

Jill Dougherty reported from Rome, and Michael Pearson reported and wrote from Atlanta. CNN's Nick Paton Walsh and Elise Labott also contributed to this report.

Read More..

Collins believes Bulls taking right approach with Rose

CAPTIONS

Derrick Rose
Derrick Rose warms up before a game between the Bulls and the 76ers at the United Center. (Chris Sweda, Chicago Tribune /February 28, 2013)

By K.C. Johnson, Chicago Tribune reporter

8:12 p.m. CST, February 28, 2013

Even Doug Collins got swept up in the Derrick Rose hysteria on Thursday.

"I thought for sure he was going to play (Thursday night)," the 76ers' coach said. "Got hurt against Philadelphia, come back against Philadelphia, game on TNT. I could just see him running out with the Adidas commercial."

Instead, Rose's participation got limited to another lengthy, sweaty pregame workout featuring several dunks that drew oohs and aahs from the early-arriving fans. Collins battled serious knee injuries in his playing career and thinks the conservative approach is the right one.

"The Bulls have a tremendous investment in Derrick," Collins said. "You want to make sure this young guy is ready to go. We take a guy like Adrian Peterson and we see him rehab and play football and you sort of expect everybody to have the same timetable. Knees are different. Every player is different. Everybody's game is different.

"Derrick is an explosive player. He plays in the lane. He's landing in a lot of congestion. He's going to have to be very confident when he plays about being able to explode off that leg and come down in a crowd.

"(Chairman) Jerry Reinsdorf and the Bulls organization aren't short-sighted people. They have a franchise they feel has a chance to be good for a long, long time. And Derrick is the guy who's going to make that special. So I totally understand."

All aboard: All signs point to the Bulls winning a four-team race and signing Lou Amundson to a 10-day contract on Saturday, bringing their roster to the maximum 15 players. Amundson, who was waived by the Timberwolves on Feb. 8, would be big-man insurance while Taj Gibson remains sidelined with a sprained MCL in his left knee. The Heat, Celtics and Knicks also are in the mix for Amundson.

The Bulls have just enough below the hard salary cap of $74.307 million to sign Amundson for the remainder of the season if they choose. He then would be eligible for the playoffs.

Over seven seasons with six teams, the 6-foot-9 forward has averaged 3.8 points and 3.6 rebounds.

Layups: Marquis Teague turned 20 Thursday. … Collins, on the widespread reaction to his heart-on-his-sleeve postgame news conference after the 76ers' sixth straight loss on Tuesday: "Yeah, I guess I was trending."

Read More..

Wall Street gains on Bernanke comments, S&P above 1,500

NEW YORK (Reuters) - Stocks rose on Wednesday, with major indexes posting their best daily gains since early January, as Federal Reserve Chairman Ben Bernanke remained steadfast in supporting the Fed's stimulus policy and data pointed to economic improvement.

In a second day before a congressional committee, Bernanke defended the Fed's buying of bonds to keep interest rates low to boost growth. The market's jump of more than 1 percent also came on better-than-expected data on business spending plans and the housing market.

Bernanke's remarks helped the market rebound from its worst decline since November and put the S&P 500 index back above 1,500, a closely watched level that has been technical support until recently. The Dow Jones industrial average <.dji> closed at a level not seen since 2007 as it again pulled within striking distance of an all-time high.

Speaking before the House Financial Services Committee, Bernanke downplayed signs of internal divisions at the Fed, saying the policy of quantitative easing, or QE, has the support of a "significant majority" of top central bank officials.

Bernanke removed a headwind from markets arising from concerns the Fed's quantitative easing might end earlier than anticipated. Doubts about the Fed's intentions had broken a seven-week streak of gains by stocks.

"The Fed continues to encourage risk-taking in markets, which is a powerful tool that makes the danger not being long stocks, not in being too long," said Tom Mangan, a money manager at James Investment Research Inc in Xenia, Ohio.

The Dow Jones industrial average <.dji> was up 176.32 points, or 1.27 percent, at 14,076.45. The Standard & Poor's 500 Index <.spx> was up 19.07 points, or 1.27 percent, at 1,516.01. The Nasdaq Composite Index <.ixic> was up 32.61 points, or 1.04 percent, at 3,162.26.

Pending home sales jumped 4.5 percent in January, three times the rate of growth that had been expected. While orders for durable goods fell more than expected in January, non-defense capital goods orders excluding aircraft - a closely watched proxy for business spending plans - showed the biggest gain since December 2011.

About 74 percent of stocks traded on the New York Stock Exchange closed higher while 64 percent of Nasdaq-listed shares closed up.

The S&P turned very slightly higher on the week, recovering from the index's biggest daily drop since November on Monday. That drop came on concerns over Italy's election, as well as over sequestration - U.S. government budget cuts that will take effect starting on Friday if lawmakers fail to reach an agreement on spending and taxes.

The index had climbed 6.3 percent for the year before pulling back on concerns about Fed policy and inconclusive elections in Italy, which rekindled fears of a new euro zone debt crisis.

"While the rally remains intact and there are reasons to be long-term bullish here, there are also reasons to not be surprised if we get a correction," said Mangan, who helps oversee $3.7 billion.

In earnings news, Priceline.com gained 2.6 percent to $695.91 after reporting adjusted earnings that beat expectations. TJX Cos Inc jumped 2.5 percent to $44.75 after the retail chain operator posted higher fourth-quarter results.

The S&P retail index <.spxrt> climbed 1.6 percent.

Target Corp offered a cautious outlook for consumer spending in 2013 following a weak holiday quarter. The stock dipped 1.1 percent to $63.32.

First Solar Inc plunged 14 percent to $27.04 after failing to give a full-year earnings and sales outlook, though it also swung to a quarterly profit.

Groupon Inc plunged 21 percent to $4.70 after the bell after reporting its fourth-quarter results.

With 93 percent of the S&P 500 companies having reported results so far, 69.5 percent beat profit expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters, according to Thomson Reuters data.

Fourth-quarter earnings for S&P 500 companies are estimated to have risen 6.2 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

About 6.23 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, slightly below the daily average so far this year of about 6.48 billion shares.

(Editing by Nick Zieminski and Kenneth Barry)

Read More..

Penn State upsets No. 4 Michigan 84-78

STATE COLLEGE, Pa. (AP) — Jermaine Marshall scored 25 points and Penn State upset No. 4 Michigan 84-78 on Wednesday night for its first Big Ten victory in more than a year.

The Nittany Lions (9-18, 1-14) had lost 18 straight regular-season conference games dating to last season, but they roared back from a 15-point deficit with 10:39 left behind the energetic play of Marshall. The junior guard scored 19 in the second half, including four 3s that whipped Jordan Center fans into a frenzy.

D.J. Newbill added 17 points for Penn State, which hit a season-high 10 3-pointers. Marshall's twisting drive to the basket gave the Nittany Lions a three-point lead before Michigan's Glenn Robinson III misfired on a 3 with 17 seconds left.

Sasa Borovnjak had a memorable Senior Night, hitting two foul shots with 15 seconds left to seal the win. Moments later, Penn State fans rushed the court in delight.

Tim Hardaway Jr. scored 19 points for the Wolverines (23-5, 10-5).

It was Penn State's first win over a top 5 team since defeating No. 5 North Carolina 82-74 in the second round of the 2001 NCAA tournament.

Penn State also got its first conference win since beating Iowa 69-64 on Feb. 16, 2012.

The loss is likely to hurt Michigan as it jockeys for seeding in the NCAA tournament. The Wolverines squandered a chance to pull into a second-place tie in the Big Ten with Michigan State and Wisconsin.

Trey Burke had 18 points and six assists for Michigan, but also committed six turnovers. The Wolverines had 15 turnovers in the game, six more than their season average.

Still, two 3s by Hardaway during a 15-4 run midway through the second half gave his team a 66-51 lead. But it was Penn State that made clutch plays down the stretch.

Marshall led the way, while Ross Travis provided the muscle up front with 15 points and 12 rebounds.

Penn State coach Patrick Chambers has been saying all conference season long that his rebuilding team was "so close" to getting a league win.

The Nittany Lions finally got one against one of the toughest foes they'll face all year.

Two foul shots by Marshall gave Penn State its first lead since the first half, 76-74, with 3:55 left. The Jordan Center rocked as if it were a Michigan-Penn State football game across the street at Beaver Stadium.

Burke hit two foul shots with 1:21 left to get Michigan within one before Marshall's layup that teetered on the rim before dropping in.

It was all Penn State from there.

Midway through the second half, Michigan controlled the lane with dunks and cuts to the bucket. Long-range shooting gave the Wolverines breathing room after Nik Stauskus (12 points, eight rebounds) and Hardaway hit 3s on back-to-back possessions to help build the short-lived 15-point lead after Penn State had drawn within 49-45.

The first half was a sign of things to come. After struggling from long range much of the year, Penn state went 5 of 10 from behind the arc and forced 10 turnovers to stay within 39-36 at halftime.

All five of Michigan's losses have come on the road in the Big Ten — none worse than Wednesday night's defeat. Michigan finished February with a 3-4 record, heading into a showdown Sunday with No. 9 Michigan State.

Read More..

Italy left on financial high-wire

Prime Minister Silvio Berlusconi delivers a speech during a campaign rally in Rome on January 25, 2013.

STORY HIGHLIGHTS

• Brilliant minds are still trying to figure out the financial impact of Italy's election


• The lack of certainty is seen as a negative for Italy -- and the eurozone


• Instability could reignite the eurozone crisis


• But it depends on what deal will be done, and how the markets will respond

Editor's note: Louise Cooper is a financial blogger and commentator who regularly appears on television, radio and in print. She started her career at Goldman Sachs as a European equity institutional sales person and then become a financial and business journalist. She now writes CooperCity.

London (CNN) -- Brilliant minds across the financial world are still trying to work out the implications of the Italian election result.

For the time being, the best answer is that it is probably too soon to tell. After Tuesday's falls, a little stability has returned to markets, possibly because everyone is still trying to work out what to think.

Credit ratings agency Moody's has warned the election result is negative for Italy -- and also negative for other indebted eurozone states. It fears political uncertainty will continue and warns of a "deterioration in the country's economic prospects or difficulties in implementing reform," the agency said.

For the rest of the eurozone, the result risks "reigniting the euro debt crisis." Madrid must be looking to Italy with trepidation. If investors decide that Italy is looking risky again and back off from buying its debt, then Spain will be drawn into the firing line too.

Can the anti-Berlusconi save Italy?

Louise Cooper, of Cooper City

Standard & Poor's stated that Italy's rating was not immediately affected by the election but I think the key part of that sentence is "not immediately."

At the same time Herman Van Rompuy's tweets give an indication of the view from Brussels: "We must respect the outcome of democratic elections in Italy," his feed noted.

Really? That's a first. The democratically elected Silvio Berlusconi was forced out when he failed to follow through with austerity after the European Central Bank helped Italy by buying its debt in autumn 2011.

"It is now up to Italian political leaders to assume responsibility, compromise and form a stable government," Van Rompuy tweeted.

Did he see the results? The newcomer and anti-establishment comedian Beppe Grillo refuses to do a deal and yet he is the natural kingmaker, polling at 25%.

"Nor for Italy is there a real alternative to continuing fiscal consolidations and reforms," he continued.

Economically yes, but the Italian electorate disagree. And for the time being, Italy has a democracy (of sorts).

Finally: "I am confident that Italy will remain a stable member of the eurozone."

He hopes...

The key to whether the crisis reignites is whether investors begin to back away from lending to Italy. If so, this will be the big test of the ECB's resolve to save the euro.

Read more: Euro crisis coverage

The key thing to look at is Italian bonds, because if borrowing costs rise from 4.8% for 10-year money currently to nearer 6%, then Italy will start to find it too expensive to borrow.

The trillion euro question is if the ECB will step in to help even if it cannot get the reforms and austerity it demands (because of the political situation). That is the crux of the matter. And there will be many in the city today pondering that question.

Clearly in financial markets, taking on a central bank is a dangerous thing to do. Soros may have broken the Bank of England on Black Wednesday 1992, making billions by forcing sterling out of the EMU, but that was a long time ago.

Italy avoids panic at bond auction

What we have learnt from this crisis is not to "fight the Fed" (or the ECB). Last summer, the ECB's chief Mario Draghi put a line in the sand with his "whatever it takes" (to save the euro) speech.

But as part of that commitment he stressed time and time again that any new help from the ECB comes with conditions attached. And those conditions are what have proven so unpalatable to the Italians -- austerity and reform.

So we have two implacable objects hurtling towards each other. The political mess of Italy and the electorate's dislike of austerity and reform (incumbent technocrat Mario Monti only polled 10%).

So what happens next? The status quo can continue if Italian borrowing costs do not rise from here and therefore Italy does not need ECB help.

If markets continue to believe in Draghi and Brussels that the euro is "irreversible," then investors will continue to lend to Italy. Yes, markets will be jittery and fearful, but Italy will eventually sort itself out politically.

The big advantage for Italy is although it has a lot of debt, it is not creating debt quickly (like Greece, Spain or even the UK). And as I said yesterday on my CooperCity blog, the positive outcome from all this could be that Brussels backs off from austerity, which would be a good thing.

However, the basic rule of finance is that high risk comes with high return. Soros took a huge gamble against the British central bank but it reportedly made him a billionaire overnight.

There must be a few hedge funders looking at the Italian situation with similar greed in their eyes. If he wants to save the euro, it is time for Mario Draghi to put the fear of God back into such hearts.

Read More..