U.S. does not rule out removing all troops from Afghanistan


WASHINGTON (Reuters) - The Obama administration does not rule out a complete withdrawal of U.S. troops from Afghanistan after 2014, the White House said on Tuesday, just days before President Barack Obama is due to meet Afghan President Hamid Karzai.


The comments by U.S. Deputy National Security Adviser Ben Rhodes were the clearest signal yet that, despite initial recommendations by the top military commander in Afghanistan to keep as many as 15,000 troops in the country, Obama could opt to remove everyone, as happened in Iraq in 2011.


Asked about consideration of a so-called zero-option once the NATO combat mission ends at the end of 2014, Rhodes said: "That would be an option that we would consider."


Rhodes made clear that a decision on post-2014 troop levels is not expected for months and will be made based on two U.S. security objectives in Afghanistan - denying a safe haven to al Qaeda and ensuring Afghan forces are trained and equipped so that they, and not foreign forces, can secure the nation.


"There are, of course, many different ways of accomplishing those objectives, some of which might involve U.S. troops, some of which might not," Rhodes said, briefing reporters to preview Karzai's visit.


In Iraq, Obama decided to pull out all U.S. forces after failing in negotiations with the Iraqi government to secure immunity for any U.S. troops who would remain behind.


The Obama administration is also insisting on immunity for any U.S. troops that remain in Afghanistan, and that unsettled question will figure in this week's talks between Obama and Karzai and their aides.


"As we know from our Iraq experience, if there are no authorities granted by the sovereign state, then there's no room for a follow-on U.S. military mission," said Douglas Lute, special assistant to Obama for Afghanistan and Pakistan.


Jeffrey Dressler, an Afghanistan expert at the Washington-based Institute for the Study of War who favors keeping a larger presence in Afghanistan, questioned whether the White House comments might be part of a U.S. bargaining strategy with Kabul.


"I can't tell that they're doing that as a negotiating position ... or if it is a no-kidding option," Dressler said. "If you ask me, I don't see how zero troops is in the national security interest of the United States."


SHOULDN'T JUST "LEAVE THEM"


U.S. officials have said privately that the White House had asked for options to be developed for keeping between 3,000 and 9,000 troops in the country, a lower range than was put forward initially by General John Allen, the top U.S. and NATO commander in Afghanistan.


Allen suggested keeping between 6,000 and 15,000 troops in Afghanistan.


Retired General Stanley McChrystal, a former U.S. commander of the Afghan mission who resigned in 2010, said in an interview with Reuters on Monday there was a value to having an overt U.S. military presence in Afghanistan after 2014 - even if it wasn't large.


"The art, I would say, would be having the smallest number so that you give the impression that you are always there to help, but you're never there either as an unwelcome presence or an occupier - or any of the negatives that people might draw," he said, without commenting on any specific numbers.


The United States now has about 66,000 troops in Afghanistan and Rhodes confirmed there would be steady reductions in troop levels through 2014.


Also on the agenda for the Obama-Karzai talks are tentative reconciliation efforts involving Taliban insurgents. Those efforts have shown flickers of life after nearly 10 months of limbo.


Still, hopes for Afghan peace talks have been raised before, only to be dashed. Last March, the Taliban suspended months of quiet discussions with Washington aimed at getting the insurgents and the Karzai government to the peace table.


Washington has also had a strained relationship with Karzai, who in October accused the United States of playing a double game in his country by fighting the war in Afghan villages instead of going after those in Pakistan who support insurgents.


Karzai will give a joint press conference with Obama on Friday and will visit the Pentagon on Thursday, meeting with Defense Secretary Leon Panetta and the U.S. top military officer, General Martin Dempsey.


Still, it is unclear what, if any, concrete agreements might emerge from Karzai's visit to Washington.


Michael O'Hanlon, a defense analyst at Brookings, cautioned against expecting too much from the visit, which he said is best seen as an opportunity for Washington and Kabul to "shore up this partnership that has had such a troubled status and a weak foundation."


"There are a lot of scars in this relationship. There are a lot of hurt feelings," O'Hanlon said. "It's sort of like a bad marriage and it's very easy for just the wrong word to immediately set people off in an emotional way."


(Additional reporting by David Alexander.; Editing by Eric Beech and Christopher Wilson)



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Samsung’s big push for 2013: content, corporates






LAS VEGAS (Reuters) – Samsung Electronics, the global leader in consumer smartphones, is planning two major thrusts in 2013: bulking up mobile content and moving faster into the corporate market dominated by Research in Motion.


The South Korean electronics company is investing in devices that enterprise users like corporations will endorse, with a higher level of security and reliability than general users need. In doing so, Samsung is capitalizing on doubts about the longevity of the BlackBerry as its Canadian maker struggles to revive growth.






Samsung’s corporate market ambitions have advanced as the Galaxy SIII, its popular flagship smartphone, won the requisite security certifications from companies, said Kevin Packingham, chief product officer for Samsung Mobile USA.


As RIM prepares to launch its next-generation BlackBerry 10 this quarter, the company’s future remains shaky. Corporate technology officers have begun to explore other smartphones, such as those by Apple Inc or Samsung.


“The enterprise space has suddenly become wide open. The RIM problems certainly fueled a lot of what the CIOs are going through, which is they want to get away from a lot of the proprietary solutions,” Packingham said in an interview at the Consumer Electronics Show in Las Vegas. “They want something that integrates what they are doing with their IT systems. Samsung is investing in that area.”


“It’s been a focus for a long time but the products have evolved now that we can really take advantage of that,” he added. “We knew we had to build more tech devices to successfully enter the enterprise market. What really turned that needle was that we had the power of the GS3.”


Samsung in 2012 overtook Apple as the world’s largest maker of smartphones, with a vastly larger selection of cellphones that attacked different price points and proved popular in emerging markets.


German business software maker SAP provides employees with Samsung’s Galaxy S III, the larger Galaxy Note and the Galaxy Tab, SAP Chief Information Officer Oliver Bussmann said in an interview.


“The one clear trend in enterprise is the shift away from one device to multiple devices,” said Bussman, who makes 10 devices available to SAP employees for official use. The list includes Apple’s iPhone and iPad, Nokia Lumia and RIM’s Blackberry.


“Because of the fragmentation of the Android software, we decided to go with just one Android company and we went with Samsung,” he added.


Now, the Korean hardware specialist is beefing up its software – an area in which it has lagged arch-enemy Apple, which revolutionized the mobile phone from 2007 with its content-rich, developer-led iPhone ecosystem.


Packingham sees an area ripe for innovation – combining the mobile phone with Samsung’s strength, the TV, which has barely evolved in the past decade.


Still, the U.S.-based executive remained cagey about Samsung’s plans for content and enterprise.


“You are going to see from content services, we’ll start to integrate what’s happening on the big screen, what’s happening on the tablet,” he said.


“We know now that people like to explore content that they are watching on TV while they have a tablet in their lap, and that’s going to be a big theme for this year.”


(Editing by Richard Chang)


Tech News Headlines – Yahoo! News





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Kangaroo Gets Loose at Melbourne Airport















01/08/2013 at 08:00 PM EST



Travelers passing through Australia's Melbourne Airport on Monday may have been greeted by an unexpected baggage handler.

At around 7 a.m., a 3-year-old eastern gray kangaroo was spotted in the airport's parking garage, where it hopped around for almost two hours, giving security officers the slip in the process.

Wildlife officer Manfred Zabinskas was then called in to catch the young animal, who was tranquilized in order to be transported to safety. Analyzing the critter, Zabinskas noted he had been away from his natural habitat for some time, and that the romp through the parking garage had done some damage to his feet. Prior to being re-released into the wild, the kangaroo will be looked at by a veterinarian.

This is the second time a kangaroo has paid a visit to the Melbourne Airport. Last October, another marsupial made its way up to the fifth floor of the parking garage before being spotted.

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Report: Death rates from cancer still inching down


WASHINGTON (AP) — Death rates from cancer are continuing to inch down, researchers reported Monday.


Now the question is how to hold onto those gains, and do even better, even as the population gets older and fatter, both risks for developing cancer.


"There has been clear progress," said Dr. Otis Brawley of the American Cancer Society, which compiled the annual cancer report with government and cancer advocacy groups.


But bad diets, lack of physical activity and obesity together wield "incredible forces against this decline in mortality," Brawley said. He warned that over the next decade, that trio could surpass tobacco as the leading cause of cancer in the U.S.


Overall, deaths from cancer began slowly dropping in the 1990s, and Monday's report shows the trend holding. Among men, cancer death rates dropped by 1.8 percent a year between 2000 and 2009, and by 1.4 percent a year among women. The drops are thanks mostly to gains against some of the leading types — lung, colorectal, breast and prostate cancers — because of treatment advances and better screening.


The news isn't all good. Deaths still are rising for certain cancer types including liver, pancreatic and, among men, melanoma, the most serious kind of skin cancer.


Preventing cancer is better than treating it, but when it comes to new cases of cancer, the picture is more complicated.


Cancer incidence is dropping slightly among men, by just over half a percent a year, said the report published by the Journal of the National Cancer Institute. Prostate, lung and colorectal cancers all saw declines.


But for women, earlier drops have leveled off, the report found. That may be due in part to breast cancer. There were decreases in new breast cancer cases about a decade ago, as many women quit using hormone therapy after menopause. Since then, overall breast cancer incidence has plateaued, and rates have increased among black women.


Another problem area: Oral and anal cancers caused by HPV, the sexually transmitted human papillomavirus, are on the rise among both genders. HPV is better known for causing cervical cancer, and a protective vaccine is available. Government figures show just 32 percent of teen girls have received all three doses, fewer than in Canada, Britain and Australia. The vaccine was recommended for U.S. boys about a year ago.


Among children, overall cancer death rates are dropping by 1.8 percent a year, but incidence is continuing to increase by just over half a percent a year. Brawley said it's not clear why.


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Asian shares rise as earnings eyed

TOKYO (Reuters) - Asian shares rose on Wednesday as investors resumed buying after taking profits from a sharp rally at the start of the year while warily bracing for corporate earnings season to kick off in full force.


European shares were seen following Asia's lead with a modest rise, with financial spreadbetters predicting London's FTSE 100 <.ftse>, Paris's CAC-40 <.fchi> and Frankfurt's DAX <.gdaxi> would open as much as 0.3 percent higher. U.S. stock futures suggested a firmer Wall Street start with a 0.1 percent gain. <.l><.eu><.n/>


The yen's rebound as part of broader market position adjustments was also short-lived, with the dollar erasing earlier losses to rise 0.5 percent to 87.48 yen on sustained expectations of further monetary easing in Japan.


MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> rose 0.4 percent. Hong Kong shares <.hsi> were among the top gainers with a 0.5 percent climb, bouncing from their lowest in a week as Chinese banks were supported by a brokerage upgrade. Shanghai shares <.ssec> rose 0.3 percent.


"We are running into chart resistance now, so investors are looking to rotate into laggards. There is no need to be too bearish right now, at least in the first quarter," said Hong Hao, Bank of Communication International Securities' chief strategist.


Australian shares <.axjo> ended up 0.4 percent to break a three-day losing streak.


Alcoa Inc , the largest aluminum producer in the U.S., with customers in a wide range of industries, launched the U.S. earnings season on Tuesday. It reported a fourth-quarter profit of $242 million, in line with Wall Street expectations.


U.S. corporate profits are expected to be higher than the third quarter's lackluster results, but analysts' estimates are down sharply from where they were in October.


Credit Suisse said in a research note that Asian equity market price indices may start to catch up with earnings estimates which had been outperforming market prices, suggesting further upside scope for Asian share prices.


The consensus earnings forecast so far is flat in January, following virtually flat revisions in December, it said.


"It was the persistent EPS downgrades that led to the gap between equity market price indices and EPS. These flat revisions could act as a catalyst for equity market price indices to converge with EPS," Credit Suisse said.


Data flows were light with Australian retail sales surprisingly fell 0.1 percent in November from October, against forecasts for a 0.3 percent rise on the month, sending the Australian dollar down to session lows of $1.0486 from $1.0517 before the data was released.


China will release its December trade data on Thursday, which includes initial estimates for metals imports and exports.


U.S. crude and Brent both eased 0.1 percent to $93.03 a barrel and $111.86 respectively.


"What we're seeing in the oil markets is the cautious sentiment playing up ahead of some key economic events this week," said Ker Chung Yang, senior investment analyst at Phillips Futures Pte in Singapore.



Australian retail sales: http://link.reuters.com/zew92t


China exports graphic: http://link.reuters.com/kun94t


Euro zone retail sales: http://link.reuters.com/tyb25s


^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>


YEN STAYS WEAK


Japan's benchmark Nikkei stock average <.n225> erased earlier losses to end 0.7 percent higher, bolstered by the yen's resumed weakness. The dollar had risen about 12 percent over the past two months against the yen, contributing to the Nikkei's 22 percent jump in the same period. <.t/>


Expectations of much bolder monetary easing from the Bank of Japan to help Tokyo beat deflation under new Japanese Prime Minister Shinzo Abe have encouraged investors to sell the yen.


But as trading resumed from year-end holidays, analysts and traders said markets were ripe for position adjustments.


"After a good run in risk assets since December, we entered in a phase of consolidation which is moving from Japanese equities to short JPY positions," said Sebastien Galy, FX strategist at Societe Generale in New York, in a note, adding that the dollar could consolidate to 85 yen but must first take out the first Fibonacci retracement at 85.75 yen.


Yen crosses which had been bought the most, including the yen/Korean won, are the most exposed to the correction.


"Such a washout in JPY crosses is the opportunity many long-term investors will be waiting for to continue their switch into strategic short yen positions," he said.


The dollar earlier on Wednesday fell as low as 86.825 yen, having scaled its highest since July 2010 at 88.48 on Friday. The euro also added 0.2 percent to 114.475 yen, off the day lows of 113.55. The euro last week hit 115.995 yen, its highest since July 2011.


The Bank of Japan will consider easing monetary policy again at its January 21-22 meeting, by likely boosting buying of government bonds and treasury discount bills, while considering a doubling of its inflation target to 2 percent.


The euro held steady against the dollar at $1.3086, ahead of Thursday's European Central Bank policy meeting and Spanish and Italian bond auctions toward the end of the week.


Sentiment turned cautious in Asian credit markets, with the spread on the iTraxx Asia ex-Japan investment-grade index widening slightly by 1 basis point.


(Additional reporting by Clement Tan in Hong Kong and Ramya Venugopal in Singapore; Editing by Eric Meijer)



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As Obama, Karzai meet, Afghan peace efforts show flickers of life


WASHINGTON/ISLAMABAD (Reuters) - President Barack Obama and Afghan President Hamid Karzai will discuss matters of war, including future U.S. troop levels and Afghanistan's army, when they meet on Friday, but matters of peace may be the most delicate item on their long agenda.


After nearly 10 months in limbo, tentative reconciliation efforts involving Taliban insurgents, the Karzai government and other major Afghan factions have shown new signs of life, resurrecting tantalizing hopes for a negotiated end to decades of war.


Pakistan, which U.S. and Afghan officials have long accused of backing the insurgents and meddling in Afghanistan, has recently signaled an apparent policy shift toward promoting its neighbor's stability as most U.S. combat troops prepare to depart, top Pakistani and Afghan officials said.


In another potentially significant development, Taliban representatives met outside Paris last month with members of the Afghan High Peace Council - although not directly with members of the Karzai government, which they have long shunned.


U.S. officials, speaking on condition of anonymity, said the developments are promising - but that major challenges remain to opening negotiations, let alone reaching an agreement on the war-ravaged country's political future.


Hopes for Afghan peace talks have been raised before, only to be dashed. Last March, the Taliban suspended months of quiet discussions with Washington aimed at getting the insurgents and the Karzai government to the peace table.


Obama is expected to press the Afghan president to bless the formal opening of a Taliban political office in the Gulf state of Qatar as a way to jump-start inter-Afghan talks.


Karzai has been lukewarm to the idea, apparently fearing his government would be sidelined in any negotiations.


TRIP AT A TURNING POINT


Karzai's meeting with Obama, at the end of a three-day visit to Washington, is shaping up to be one of the most critical encounters between the two leaders, as the White House weighs how rapidly to remove most of the roughly 66,000 U.S. troops in Afghanistan and how large a residual force to leave after 2014.


Obama, about to begin his second term in office, appears determined to wrap up U.S. military engagement in Afghanistan. On Monday, he announced as his nominee for Pentagon chief former Nebraska Senator Chuck Hagel, who appears likely to favor a sizeable U.S. troop drawdown.


Other issues on the agenda have plenty of potential for causing friction: the future size and focus of the Afghan military; a festering dispute over control of the country's largest detention center; and the future of international aid after 2014.


Karzai's trip "is one of the most important ones because the discussions we are going to have with our counterparts will define the relations between (the) United States and Afghanistan," Afghan Foreign Minister Zalmay Rassoul told the lower house of parliament this month.


No final announcement on post-2014 U.S. troop levels is expected during Karzai's visit, and the issue is further complicated by Washington's insistence on legal immunity for American troops that remain.


General John Allen, the top U.S. and NATO commander in Afghanistan, recommended keeping between roughly 6,000 and 15,000 U.S. troops in Afghanistan after 2014, but the White House is considering possibly leaving as few as 3,000 troops.


A U.S. official, speaking on condition of anonymity, said the White House had asked for options to be developed for keeping between 3,000 and 9,000 troops in the country.


PAST PEACE HOPES DASHED


Last year, the Obama administration hoped to kick-start peace talks with a deal that would have seen Washington transfer five Taliban prisoners from Guantanamo Bay prison. In return, the Taliban would renounce international terrorism and state a willingness to enter talks with Karzai's representatives.


That deal never came off, and the question now is whether it, or an alternative peace process, can get under way as the U.S. military presence rapidly winds down.


Looking at developments in the last few months, "you could see that there are things happening," said one U.S. official, who was not authorized to speak for the record.


At the end of 2012, Pakistan released four Afghan Taliban prisoners who were close to the movement's reclusive leader, Mullah Mohammed Omar. It appeared to be a step toward meeting Afghanistan's long-standing insistence that Islamabad free those who could help promote reconciliation. A senior Afghan official welcomed the release.


A member of Pakistan's parliament closely involved in Afghan policy-making said there are signs of a shift in the thinking of Pakistan's powerful military. Some in the military, which has long regarded Afghanistan as a battleground in its existential conflict with rival India, are now saying that the graver threat comes from Pakistan's own militants.


"Yes, there is skepticism. The hawks are there. But the fact is that previously there were absolutely no voices in the army with this kind of positive thinking," the parliamentarian said.


"Pakistan has also realized that there won't be a complete withdrawal of the U.S. from Afghanistan," the lawmaker said. "The security establishment realizes it has to compromise somewhere. Hence the Taliban releases. ... Hence the statements from even the most skeptical Afghan officials that there is a change in Pakistani thinking."


Ghairat Baheer, who represented the Hezb-e-Islami faction at last month's peace talks in the Paris suburb of Chantilly, rejected a continued U.S. military presence in Afghanistan, but praised the Pakistan prisoner release as a sign of its good intentions.


WAITING FOR THE TALIBAN


After more than a year of frustration, Obama administration officials are skeptical about luring the Taliban to peace talks, citing what appears to be a deep fissure within the movement between moderates who favor entering the political process and hard-liners committed to ousting both NATO troops and Karzai.


The Taliban's lead negotiator, Tayeb Agha, whom the Obama administration regards as a reliable interlocutor, offered to resign last month in apparent frustration, the Daily Beast website reported.


Taliban envoys have yet to meet officially with Karzai's government, and the insurgents demand a rewriting of the Afghan constitution.


"I don't think anyone knows where (reconciliation) stands. And I mean that because there are a lot of reconciliation talks and a lot of games that are being played in a lot of places," said Fred Kagan, a military analyst at the conservative American Enterprise Institute.


"The likelihood of getting an acceptable deal that actually secures our interests is vanishingly small," he said. "But the probability that you could get the deal and have it implemented in time to make this drawdown timeline make sense is nonsense."


(Additional reporting by Phil Stewart and David Alexander in Washington, and Hamid Shalizi in Kabul. Editing by Christopher Wilson)



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181,354 People on Twitter Think They’re Experts at Twitter






Do you tweet a lot? Do you post everything on Facebook? Do you #hashtag #complete #sentences #like #this? Do you describe yourself, variously, as a social media “maven”, “master”, “guru”, “freak”, “warrior”, “evangelist” or “veteran”? (Yes, a social media veteran. As if Tumblr were a deadly war you narrowly survived.) Well: you’ve got company! There are more than 181,000 such individuals on Twitter, people who adorn their profiles with credentials like “social media freak” and “social media wonk” and “social media authority.”


RELATED: Teens Hacking Their Friends’s Twitter Accounts Is All the Rage






B.L. Ochman at Advertising Age, whose heroic research produced the final tally, first noted the trend three years ago — when she recorded, among other distinctions, 68 “social media stars” and 79 “social media ninjas” on Twitter alone — and has been keeping track ever since. This isn’t just the stuff of legitimate Twitter news-breakers like Anthony DeRosa and Andy Carvin — Ohman provides a helpful breakdown of the terms she looked for — you know, like “social media warrior.” (We’re tempted to argue that such diligence makes Ochman something of a social media warrior herself.) Ochman also warns of using “guru” — a Sanskrit term — to describe oneself:



While a great many of these self-appointed gurus are no doubt taking the title with tongue firmly planted in cheek, the fact remains: a guru is something someone else calls you, not something you call yourself. Scratch that: let’s save “guru” (Sanskrit for “teacher”) for religious figures or at least people with real unique knowledge.


I’d argue, in fact, that “social media” and “guru” should never appear in the same sentence.



Whatever the term, social media seems to be a growth industry: there were only 15,740 “mavens” (or whatever) in 2009 — less than a tenth of those represented today.


Social Media News Headlines – Yahoo! News





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Justin Bartha Is Dating Trainer Lia Smith















01/07/2013 at 07:00 PM EST







Lia and Justin in Hawaii New Years Day


Pacific Coast News


Justin Bartha's "mystery woman" is in fact his girlfriend, trainer Lia Smith, a source reveals to PEOPLE.

The pair recently enjoyed a cozy trip to Smith's native Hawaii and were snapped basking in the sun on Maui on New Year's Day, which got people buzzing about her identity.

"They were very cute with each other," says an eyewitness. "They had their arms around each other and were kissing."

The couple also spent time with Smith's parents on Oahu. Bartha, who currently stars on The New Normal, was previously linked to Scarlett Johansson and dated Ashley Olsen for two years before breaking up in 2011.

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Report: Death rates from cancer still inching down


WASHINGTON (AP) — Death rates from cancer are continuing to inch down, researchers reported Monday.


Now the question is how to hold onto those gains, and do even better, even as the population gets older and fatter, both risks for developing cancer.


"There has been clear progress," said Dr. Otis Brawley of the American Cancer Society, which compiled the annual cancer report with government and cancer advocacy groups.


But bad diets, lack of physical activity and obesity together wield "incredible forces against this decline in mortality," Brawley said. He warned that over the next decade, that trio could surpass tobacco as the leading cause of cancer in the U.S.


Overall, deaths from cancer began slowly dropping in the 1990s, and Monday's report shows the trend holding. Among men, cancer death rates dropped by 1.8 percent a year between 2000 and 2009, and by 1.4 percent a year among women. The drops are thanks mostly to gains against some of the leading types — lung, colorectal, breast and prostate cancers — because of treatment advances and better screening.


The news isn't all good. Deaths still are rising for certain cancer types including liver, pancreatic and, among men, melanoma, the most serious kind of skin cancer.


Preventing cancer is better than treating it, but when it comes to new cases of cancer, the picture is more complicated.


Cancer incidence is dropping slightly among men, by just over half a percent a year, said the report published by the Journal of the National Cancer Institute. Prostate, lung and colorectal cancers all saw declines.


But for women, earlier drops have leveled off, the report found. That may be due in part to breast cancer. There were decreases in new breast cancer cases about a decade ago, as many women quit using hormone therapy after menopause. Since then, overall breast cancer incidence has plateaued, and rates have increased among black women.


Another problem area: Oral and anal cancers caused by HPV, the sexually transmitted human papillomavirus, are on the rise among both genders. HPV is better known for causing cervical cancer, and a protective vaccine is available. Government figures show just 32 percent of teen girls have received all three doses, fewer than in Canada, Britain and Australia. The vaccine was recommended for U.S. boys about a year ago.


Among children, overall cancer death rates are dropping by 1.8 percent a year, but incidence is continuing to increase by just over half a percent a year. Brawley said it's not clear why.


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Wall Street edges off five-year high, awaits earnings

NEW YORK (Reuters) - Stocks lost ground on Monday, as investors drew back from recent gains that lifted the S&P 500 to a five-year high, in anticipation of sluggish growth in corporate profits.


Shares of financial companies dipped after a group of major U.S. banks agreed to pay a total of $8.5 billion to end a government inquiry into faulty mortgage foreclosures. The KBW bank index <.bkx>, a gauge of U.S. bank stocks, was down 0.3 percent.


Other sectors were hit as well, most notably energy and utilities. The S&P 500 energy sector index <.gspe> fell 0.8 percent and the utilities sector <.gspu> was off 1.1 percent.


The day's decline came a session after the S&P 500 finished at a five-year high, boosted by a budget deal and strong economic data. The S&P 500 rose 4.6 percent last week, the best weekly gain in more than a year.


"It's a little bit of taking some risk off the table ahead of profit season, you're not going to see anything all that great" on earnings, said Larry Peruzzi, senior equity trader at Cabrera Capital Markets Inc in Boston.


Earnings are expected to be only slightly better than the third-quarter's lackluster results, and analysts' current estimates are down sharply from where they were in October. Fourth-quarter earnings growth is expected to come in at 2.8 percent, according to Thomson Reuters data.


Aluminum company Alcoa Inc begins the reporting season by announcing its results after Tuesday's market close. Alcoa shares fell 1.7 percent at $9.10.


The Dow Jones industrial average <.dji> dropped 50.92 points, or 0.38 percent, to 13,384.29. The Standard & Poor's 500 Index <.spx> fell 4.58 points, or 0.31 percent, to 1,461.89. The Nasdaq Composite Index <.ixic> lost 2.84 points, or 0.09 percent, to 3,098.81.


Ten mortgage servicers - including Bank of America , Citigroup , JPMorgan , and Wells Fargo - agreed on Monday to pay $8.5 billion to end a case-by-case review of foreclosures required by U.S. regulators.


In a separate case, Bank of America also announced roughly $11.6 billion of settlements with mortgage finance company Fannie Mae and a $1.8 billion sale of collection rights on home loans.


The bank also entered into agreements with Nationstar Mortgage Holdings and Walter Investment Management to sell about $306 billion of residential mortgage servicing rights.


Bank of America shares lost 0.2 percent at $12.09 while Nationstar Mortgage Holdings jumped 16.8 percent to $38.83.


Citigroup shares were up 0.09 percent to $42.47, and Wells Fargo shares fell 0.5 percent to $34.77.


"The financials probably have the wind behind them now with a lot of the regulations coming out ... the market has to absorb a lot of the gains, and for that reason there's a pullback from this level," said Warren West, principal at Greentree Brokerage Services in Philadelphia.


Shares of U.S. jet maker Boeing Co dropped 2 percent after a Boeing 787 Dreamliner aircraft with no passengers on board caught fire at Boston's Logan International Airport on Monday morning.


Amazon.com shares hit their highest price ever at $269.22 after Morgan Stanley raised is rating on the stock. Shares were up 3.6 percent at $268.46.


Video-streaming service Netflix Inc shares gained 3.4 percent to $99.20 after it said it will carry previous seasons of some popular shows produced by Time Warner's Warner Bros Television.


Walt Disney Co stock fell 2.3 percent to $50.97. The company 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.


Volume was lower than average, as 4.78 billion shares were traded on the New York Stock Exchange, NYSE MKT and Nasdaq. This is well below the 2012 average of 6.42 billion per session.


Declining stocks outnumbered advancing ones on the NYSE by 1,629 to 1,363, while on the Nasdaq decliners beat advancers 1,438 to 1,066.


(Reporting By Gabriel Debenedetti; Editing by Kenneth Barry and Nick Zieminski)



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