Interpublic exits Facebook

(Reuters) – Interpublic Group of Cos said it sold its remaining investment in Facebook Inc for $ 95 million in cash.

Interpublic said it expects to record a pre-tax gain of $ 94 million. It had recorded a pre-tax gain of $ 132.2 million for the third quarter of last year from the sale of half of its 0.4 percent stake in Facebook.

Interpublic paid less than $ 5 million for the stake in 2006.

Shares of Facebook, which debuted with a market value of more than $ 100 billion in May, have lost nearly half their value since then on concerns about money-making prospects.

“We decided to sell our remaining shares in Facebook as our investment was no longer strategic in nature,” Chief Executive Michael Roth said in a statement.

Interpublic also authorized an increase in its existing share repurchase program to $ 400 million from $ 300 million. The company repurchased shares worth $ 151 million, as of September 30.

Shares of the company were up 1 percent at $ 10 on the New York Stock Exchange on Tuesday.

Facebook shares were marginally up at $ 23.00 on the Nasdaq.

(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Joyjeet Das)

Internet News Headlines – Yahoo! News

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Giuliana and Bill Rancic Share Baby Edward's First Feeding

TV Watch

TV News

By Aaron Parsley

11/20/2012 at 01:15 PM EST

"He eats like a horse."

That's proud dad Bill Rancic describing his baby boy's appetite on the Today show Tuesday morning.

But it wasn't long ago that Rancic and his wife Giuliana had no idea how their son Edward Duke, who was born via gestational surrogate on Aug. 29, would take to the bottle.

In footage from Tuesday's season 5 premiere of their Style reality show, Giuliana & Bill, the brand new parents find out.

"First feeding ever. He's taking it okay. I think he likes it," Giuliana says as she gives her baby his first bottle.

"This kid is like super chill, man," observes dad, who's holding the camera in the hospital room. "How does it feel?"

"It feels good. I feel like I'm not nervous at all," Giuliana says. "I feel like I can take care of him. I expected to be more nervous and more flustered like I had no idea what to do but I feel like totally at ease. It's kind of amazing. I just feel like I know what he needs."

The couple shot the entire episode because they wanted to share their family's most special and intimate moment with viewers and fans.

But even though their show has documented their happiest moments – as well as their struggles with infertility and Giuliana's miscarriage and her fight against breast cancer – they say have not decided whether Edward will grow on up on reality TV.

"Whether he lives his life with the cameras on or not is yet to be determined," Bill told Today's Savannah Guthrie. But for now, "We felt we owed it to all the people who have been on this journey with us to show them that hey, one in six couples struggle with infertility, and if you stick with it and never quit, it can pay off."

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

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

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

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

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

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

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

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

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

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

Monday's proposal also recommends:

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

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

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

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

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

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

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

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

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

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

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

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Wall Street falls as Bernanke's comments weigh

NEW YORK (Reuters) - Stocks slid as Federal Reserve Chairman Ben Bernanke's comments added to worries about the economic impact of the U.S. "fiscal cliff" and Hewlett-Packard's stock sank on news of an $8.8 billion accounting charge.

Bernanke, in comments before the Economic Club of New York, said the Fed does not have the tools to offset the damage that would result if politicians fail to strike a deal to prevent going off the fiscal cliff. If a solution isn't approved in time, then mandatory tax increases and spending cuts will go into effect early next year. Bernanke said he does not believe the possible benefits of cutting the interest it pays on bank reserves are sufficient to outweigh the risk of trouble in money markets.

"In the short run, we're hostage to the fiscal cliff. I think (Bernanke's) got to be really, really fearful that Washington doesn't get its act together and that creates stresses on the financial system," said Dan Veru, chief investment officer of Palisade Capital Management in Fort Lee, New Jersey.

Stocks rallied for the last two sessions on optimism that Washington politicians could agree on a deal to avoid the U.S. fiscal cliff. But the gains followed two weeks of sharp losses.

Hewlett-Packard Co shares sank 12 percent to a 10-year low at $11.70 as the computer and printer maker swung to a fourth-quarter loss. The company said it took an $8.8 billion charge related to its acquisition of software firm Autonomy, citing "serious accounting improprieties.

The Dow Jones industrial average <.dji> was down 63.43 points, or 0.50 percent, at 12,732.53. The Standard & Poor's 500 Index <.spx> was down 5.78 points, or 0.42 percent, at 1,381.11. The Nasdaq Composite Index <.ixic> was down 15.01 points, or 0.51 percent, at 2,901.06.

Another factor weighing on stocks was Moody's Investors Service's reduction of France's sovereign rating by one notch to Aa1 after the market's close on Monday. Moody's cited an uncertain fiscal outlook as a result of the weakening economy.

(Additional reporting by Chuck Mikolajczak Editing by Jan Paschal)

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Israel says prefers diplomacy but ready to invade Gaza

GAZA/JERUSALEM (Reuters) - Israel bombed dozens of targets in the Gaza Strip on Monday and said that while it was prepared to step up its offensive by sending in troops, it preferred a diplomatic solution that would end Palestinian rocket fire.

Mediator Egypt said a deal for a truce to end the fighting could be close. The leader of Hamas said it was up to Israel to end the new conflict it had started. Israel says its strikes are to halt Palestinian rocket attacks.

Israeli attacks on the sixth day of fighting raised the number of Palestinian dead to 101, the Hamas-run Health Ministry said, listing 24 children among them. Hospital officials in Gaza said more than half of those killed were non-combatants. Three Israeli civilians died on Thursday in a rocket strike.

Militants in the Gaza Strip fired 110 rockets at southern Israel on Monday, causing no casualties, police said.

For the second straight day, Israeli missiles blasted a tower block in the city of Gaza housing international media. Two people were killed there, one of them an Islamic Jihad militant.

Khaled Meshaal, exiled leader of Hamas, said a truce was possible but the Islamist group, in charge of the Gaza Strip since 2007, would not accept Israeli demands and wanted Israel to halt its strikes first and lift its blockade of the enclave.

"Whoever started the war must end it," he told a news conference in Cairo, adding that Israeli Prime Minister Benjamin Netanyahu, who faces an election in January, had asked for a truce, an assertion a senior Israeli official denied.

Meshaal said Netanyahu feared the domestic consequences of a "land war" of the kind Israel launched four years ago: "He can do it, but he knows that it will not be a picnic and that it could be his political death and cost him the elections."

For Israel, Vice Prime Minister Moshe Yaalon has said that "if there is quiet in the south and no rockets and missiles are fired at Israel's citizens, nor terrorist attacks engineered from the Gaza Strip, we will not attack."

Yaalon also said Israel wanted an end to Gaza guerrilla activity in the neighboring Egyptian Sinai peninsula.

Although 84 percent of Israelis supported the current Gaza assault, according to a poll by Israel's Haaretz newspaper, only 30 percent wanted an invasion, while 19 percent wanted their government to work on securing a truce soon.

DIPLOMACY "PREFERRED"

"Israel is prepared and has taken steps, and is ready for a ground incursion which will deal severely with the Hamas military machine," a senior official close to Netanyahu told Reuters.

"We would prefer to see a diplomatic solution that would guarantee the peace for Israel's population in the south. If that is possible, then a ground operation would no longer be required. If diplomacy fails, we may well have no alternative but to send in ground forces," he added.

Egypt, where newly elected President Mohamed Mursi has his roots in the Muslim Brotherhood seen as mentors to Hamas, is acting as a mediator in the biggest test yet of Cairo's 1979 peace treaty with Israel since the fall of Hosni Mubarak.

"I think we are close, but the nature of this kind of negotiation, (means) it is very difficult to predict," Egyptian Prime Minister Hisham Kandil, who visited Gaza on Friday in a show of support for its people, said in an interview in Cairo for the Reuters Middle East Investment Summit.

Egypt has been hosting leaders of both Hamas and Islamic Jihad, a smaller armed faction.

Israeli media said a delegation from Israel had also been to Cairo for truce talks. A spokesman for Netanyahu's government declined comment on the matter.

United Nations Secretary-General Ban Ki-moon arrived in Cairo to weigh in on ceasefire efforts. Egypt's foreign minister is expected to visit Gaza on Tuesday with a delegation of Arab ministers.

THOUSANDS MOURN FAMILY

Thousands turned out on Gaza's streets to mourn four children and five women, among 11 people killed in an Israeli strike that flattened a three-storey home the previous day.

The bodies were wrapped in Palestinian and Hamas flags. Echoes of explosions mixed with cries of grief and defiant chants of "God is greatest".

The deaths of the 11 in an air strike drew more international calls for an end to six days of hostilities and could test Western support for an offensive Israel billed as self-defense after years of cross-border rocket attacks.

Israel said it was investigating its air strike that brought the home crashing down on the al-Dalu family, where the dead spanned four generations. Some Israeli newspapers said the wrong house may have been mistakenly targeted.

In scenes recalling Israel's 2008-2009 winter invasion of the coastal enclave, tanks, artillery and infantry have massed in field encampments along the sandy, fenced-off border and military convoys moved on roads in the area.

Israel has also authorized the call-up of 75,000 military reservists, so far mobilizing around half that number.

The Gaza fighting adds to worries of world powers watching an already combustible region, where several Arab autocrats have been toppled in popular revolts for the past two years and a civil war in Syria threatens to spread beyond its borders.

In the absence of any prospect of permanent peace between Israel and Islamist factions such as Hamas, mediated deals for each to hold fire unilaterally have been the only formula for stemming bloodshed in the past.

Israel's declared goal is to deplete Gaza arsenals and force Hamas to stop rocket fire that has hit Israeli border towns for years.

Hamas and other groups in Gaza are sworn enemies of the Jewish state which they refuse to recognize and seek to eradicate, claiming all Israeli territory as rightfully theirs.

Hamas won legislative elections in the Palestinian Territories in 2006. A year later, after the collapse of a unity government under President Mahmoud Abbas, the Islamist group seized Gaza in a brief civil war with Abbas's forces.

(Writing by Jeffrey Heller, Dan Williams and Peter Graff; Editing by Alastair Macdonald)

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Nicki Minaj Is Afraid She Is 'Not So Nice' on American Idol

TV Watch

American Idol

11/19/2012 at 01:00 PM EST

From left: Mariah Carey, Keith Urban, Ryan Seacrest, Nicki Minaj and Randy Jackson

Michael Becker/FOX

Nicki Minaj is as fearless on stage as she is on the red carpet. But when it comes to the season premiere of American Idol on Jan. 16, the new judge isn't quite so brave.

"I'm scared," she told Idol host Ryan Seacrest on his radio show Monday morning.

What's she worried about? "Maybe I shouldn't have been so like ... " she says, before adding, "It's hard for me to not say how I really feel."

When Seacrest asks the singer, who performed Sunday on the American Music Awards, if she's nervous about how honest she was with the contestants, she answers, "Yes."

"Everyone else is so nice," she says. "I was just thinking back about some things and I was like, 'I wonder if that was not so nice.' "

But Minaj, 29, says she takes a tough-love approach only to help out season 11's singers.

"As an artist I've always grown more from the tougher criticism," she says, "and so I would like to be that person and to try to help people get that thick skin and to really give it their all, because it is a competition."

And though Minaj won't likely be hosting a viewing party with popcorn and friends, she does think Idol fans will enjoy the new lineup.

"I don't think I'm going to be able to watch it. I'm going to be so nervous," she says of the premiere. "But I know people are going to love it. I think it's a great dynamic."

Despite the on-set feud with costar Mariah Carey, Minaj says, "The chemistry of the judges, I feel it while I'm there. I think it's really different from anything we've seen before on Idol and people are going to like it."

Does that mean things have cooled off between the judges? Maybe. When asked if she'll perform with the singer, Minaj says, "If she'll have me, I'll be there waiting."

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Wall Street bounces on budget talk optimism, housing data

NEW YORK (Reuters) - Wall Street bounced on Monday as investors were heartened by signs of progress in talks to resolve the fiscal crunch and data that showed the housing recovery was gaining strength.

The major indexes climbed more than 1 percent after tumbling in recent weeks on nervousness over when and if Washington will come to an agreement to avoid the series of tax and spending changes that will start to come into effect in the new year.

Over the weekend, leading Democratic and Republican lawmakers expressed confidence that they could reach a deal to avert the "fiscal cliff", even as they laid down markers on raising taxes and spending cuts that may make any agreement more difficult.

"At this point, we haven't seen any of the details, so we're still a bit cautious but optimistic that we will see an agreement reached some time," said Joseph Tanious, global market strategist at J.P. Morgan Funds in New York.

"It's become fairly clear that both sides of the aisle are wiling to compromise and want to negotiate," Tanious said. Investors are getting into the market now in anticipation of a relief rally in the future when a final agreement is reached, he said.

Stronger-than-expected earnings from Lowe's and Tyson Foods, as well as encouraging housing data also contributed to the market's advance.

U.S. home resales unexpectedly increased in October, while separate data showed homebuilder sentiment rose to its highest level in over six years in November.

The PHLX Housing Index <.hgx> rose 2 percent.

The Dow Jones industrial average <.dji> gained 173.72 points, or 1.38 percent, to 12,762.03. The Standard & Poor's 500 Index <.spx> rose 22.52 points, or 1.66 percent, to 1,382.40. The Nasdaq Composite Index <.ixic> climbed 51.59 points, or 1.81 percent, to 2,904.72.

The bounce "could last for a few more days, but ultimately we'll need to see what type of legislation or forward progress comes out of Washington," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.

The S&P 500 edged above its 200-day moving average around 1,382. Closing above the key technical level with strong volume could provide additional support for the index.

Shares of Lowe's Cos Inc , the world's No. 2 home improvement chain, jumped 6.6 percent to $34.09 after the company reported higher-than-expected quarterly profit and raised its full-year sales forecast.

Tyson Foods Inc likewise beat expectations and gave an upbeat forecast, sending its stock up 7.7 percent at $18.15.

Intel shares erased earlier losses to trade slightly higher after the company said its chief executive will retire in May. Intel was up 0.5 percent at $20.19.

Commodities prices surged, boosting shares of resource companies. Freeport-McMoRan rose 3.5 percent to $38.08, while U.S. Steel climbed 3.9 percent to $20.86.

(Editing by Kenneth Barry)

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Israeli air strike kills 11 civilians in Gaza: Hamas

GAZA/JERUSALEM (Reuters) - An Israeli missile killed at least 11 Palestinian civilians including four children in Gaza on Sunday, medical officials said, in an apparent attack on a top militant that brought a three-storey home crashing down.

International pressure for a ceasefire seemed certain to mount in response to the deadliest single incident in five days of Palestinian rocket attacks on Israel and Israeli air strikes on the Gaza Strip.

Israel gave off signs of a possible ground invasion of the Hamas-run enclave as the next stage in its offensive, billed as a bid to stop Palestinian rocket fire into the Jewish state. It also spelt out its conditions for a truce.

U.S. President Barack Obama said that while Israel had a right to defend itself against the salvoes, it would be "preferable" to avoid a military thrust into the Gaza Strip, a narrow, densely populated coastal territory. Such an assault would risk high casualties and an international outcry.

A spokesman for the Hamas-run Interior Ministry said 11 people, all of them civilians, were killed when an Israeli missile flattened the home of the Dalu family. Medics said four women and four children were among the dead.

Israel's chief military spokesman said Yihia Abayah, a senior commander of rocket operations in the Gaza Strip, had been the target.

The spokesman, Yoav Mordechai, told Israel's Channel 2 television he did not know whether Abayah was killed, "but the outcome was that there were civilian casualties". He made no direct mention of the destroyed dwelling.

Prime Minister Benjamin Netanyahu said earlier that he had assured world leaders that Israel was doing its utmost to avoid causing civilian casualties in the military showdown with Hamas.

"The massacre of the Dalu family will not pass without punishment," Hamas's armed wing said in a statement.

In other air raids on Sunday, two Gaza City media buildings were hit, witnesses said. Eight journalists were wounded and facilities belonging to Hamas's Al-Aqsa TV as well as Britain's Sky News were damaged.

An employee of the Beirut-based al Quds television station lost his leg in the attack, local medics said.

The Israeli military said the strike targeted a rooftop "transmission antenna used by Hamas to carry out terror activity", and that journalists in the building had effectively been used as human shields by Gaza's rulers.

For their part, Gaza militants launched dozens of rockets into Israel and targeted its commercial capital, Tel Aviv, for a fourth day with one attack in the morning and another after nightfall.

Israel's "Iron Dome" missile shield shot down all three rockets, but falling debris from the daytime interception hit a car, which caught fire. Its driver was not hurt.

In scenes recalling Israel's 2008-2009 winter invasion of Gaza, tanks, artillery and infantry massed in field encampments along the sandy, fenced-off border. Military convoys moved on roads in the area newly closed to civilian traffic.

Netanyahu said Israel was ready to widen its offensive.

"We are exacting a heavy price from Hamas and the terrorist organisations and the Israel Defence Forces are prepared for a significant expansion of the operation," he said at a cabinet meeting, giving no further details.

Gaza health officials said 69 Palestinians - about half of them women and children - have been killed in Gaza since the Israeli offensive began, with hundreds wounded.

The Israeli military said 544 rockets fired from Gaza have hit Israel since Wednesday, killing three civilians and wounding dozens. Some 302 were intercepted and 99 failed to reach Israel and landed inside the Gaza Strip, it added.

Israel's declared goal is to deplete Gaza arsenals and force the Islamist Hamas to stop rocket fire that has bedevilled Israeli border towns for years and is now displaying greater range, putting Tel Aviv and Jerusalem in the crosshairs.

Israel withdrew settlers from Gaza in 2005 and two years later Hamas took control of the impoverished enclave, which the Israelis have kept under blockade.

OBAMA CAUTIONS AGAINST GROUND CAMPAIGN

At a news conference during a visit to the Thai capital Bangkok, Obama said Israel has "every right to expect that it does not have missiles fired into its territory".

He added: "If this can be accomplished without a ramping up of military activity in Gaza that is preferable. That's not just preferable for the people of Gaza, it's also preferable for Israelis because if Israeli troops are in Gaza they're much more at risk of incurring fatalities or being wounded," he said.

Obama said he had been in regular contact with Egyptian and Turkish leaders - to secure their mediation in bringing about a halt to rocket barrages by Hamas and other Islamist militants.

"We're going to have to see what kind of progress we can make in the next 24, 36, 48 hours," he added.

Israeli officials declined to confirm or deny reports that an Israeli negotiator had flown to Cairo to discuss a ceasefire.

Egyptian President Mohamed Mursi said in Cairo, as his security deputies sought to broker a truce with Hamas leaders, that "there are some indications that there is a possibility of a ceasefire soon, but we do not yet have firm guarantees".

Silvan Shalom, one of Netanyahu's deputies, said: "There are contacts, but they are currently far from being concluded."

U.N. Secretary-General Ban Ki-moon will be in Egypt on Monday for talks with Mursi, the foreign ministry in Cairo said. U.N. diplomats earlier said Ban was expected in Israel and Egypt this week to push for an end to the fighting.

Listing Israel's terms for ceasing fire, Moshe Yaalon, another deputy to the prime minister, wrote on Twitter: "If there is quiet in the south and no rockets and missiles are fired at Israel's citizens, nor terrorist attacks engineered from the Gaza Strip, we will not attack."

Israel's operation has so far drawn Western support for what U.S. and European leaders have called its right to self-defence, but there was also a growing number of appeals from them to seek an end to the hostilities.

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Boo, the World's Cutest Dog, Goes on Holiday Adventure

People Pets

11/18/2012 at 12:20 PM EST

What do you give a dog who has everything? (Well, if everything is nearly 6 million Facebook fans.)

You might think that Santa Claus had a tall order to fill when he got a visit from Boo, the World's Cutest Dog. Dressed in his spirited holiday finest, the adorable Pomeranian sat on Santa's lap and communicated a few of the item's on his Christmas wish list.

What does little Boo want this year? A bone, a bear – even an iPad. The big-ticket item on that list, a candy-red toy Mercedes Benz, came early with a little help from Santa and his elves, and Boo (along with his brother, Buddy), got to take a holiday joy ride to kick off the season.

"Boo loves the holidays because not only does he get presents and treats, but his owner gets lots of visitors and they go out to parties," Boo's publicist tells PEOPLE. "He's a social dog so he enjoys the celebrations with friends."

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

BUY THE DIP?

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

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

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

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

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

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

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

KEEP CALM AND HEDGE

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

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

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

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

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

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

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