Obama Expected to Name Kerry as Secretary of State





WASHINGTON — President Obama is leaning strongly toward naming John Kerry, the Massachusetts senator and unsuccessful Democratic nominee for president eight years ago, to succeed Hillary Rodham Clinton as secretary of state, according to administration officials and friends of Mr. Kerry.




But the announcement will be delayed, at least until later this week and maybe beyond, because of the Connecticut school shooting and what one official called “some discomfort” with the idea of Mr. Obama’s announcing a national security team in which the top posts are almost exclusively held by white men.


The American ambassador to the United Nations, Susan E. Rice, who is black and was considered Mr. Obama’s leading candidate for the job, withdrew her name from consideration last week after opposition to her nomination grew in the Senate.


For Mr. Kerry, 69, the appointment would fulfill an ambition that dates back many years. He had hoped for the post when Mr. Obama was first elected in 2008; since then, he has shepherded the passage of a critical arms-control treaty and conducted a series of quiet missions on behalf of the president, notably at moments of crisis with Afghanistan and Pakistan.


But he would be entering an administration whose primary foreign policy strategies are already set, even as it tries to use American leverage in dealing with a Middle East that is veering toward hard-line Islamist governments and an Iran that is getting perilously close to a nuclear capability.


With Ms. Rice out of the running, Mr. Kerry’s appointment “is the working presumption,” said a senior State Department official who has been preparing for the transition to a new secretary. But White House officials said the deal was not entirely done, because the lineup currently envisioned — with former Senator Chuck Hagel to head the Defense Department and the acting C.I.A. director, Michael J. Morell, likely to be named to the post permanently — looks a bit too much like national security teams of a previous era.


For Mr. Obama, a national security team led by Mr. Kerry and Mr. Hagel, and their longtime colleague in the Senate, Vice President Joseph R. Biden Jr., would be deeply experienced but also, in many ways, deeply conventional. All three were in the Senate during the cold war, long before Mr. Obama came on the political scene. All describe themselves as pragmatists rather than ideologues, and all became skeptics, then critics, of the American experiment in Iraq from the early days of the war.


Still, administration officials said, for now there are no serious candidates for the State Department job other than Mr. Kerry. He would be the first white man to serve in the post since Warren Christopher left the job in early 1997. His successors have been Madeleine K. Albright, Colin Powell, Condoleezza Rice and Mrs. Clinton.


Mr. Kerry’s colleagues in the Senate have said that he would sail through confirmation hearings. Senator John McCain, Republican of Arizona, has already begun jokingly calling Mr. Kerry “Mr. Secretary.” Both men are veterans of the Vietnam War and worked together to provide President Bill Clinton with political cover to grant diplomatic recognition to Vietnam. Mr. McCain said of Mr. Kerry recently that he would most likely win a large number of Republican votes for confirmation.


The issue of the composition of Mr. Obama’s team arose anew when Ms. Rice withdrew. If she keeps her current post as ambassador to the United Nations, she will remain in Mr. Obama’s cabinet and on his national security team. She is also considered the likely successor to Thomas E. Donilon as national security adviser. But Mr. Donilon does not intend to leave that post for a year or two, his friends say, unless he is named White House chief of staff.


Michèle A. Flournoy, a former under secretary of defense for policy, remains a candidate to become the first female defense secretary. But in internal discussions, White House officials have said that the challenge of the next few years will be working with Congress to shrink the defense budget and kill some major cold war-era weapons systems. For that, Mr. Hagel, a Republican from Nebraska, is seen as better able to win votes from his former colleagues.


Ms. Flournoy has also been mentioned as a possible C.I.A. director, but Mr. Morell, who ran the analysis division of the agency, is the favorite of C.I.A. officials. “Mike has been concerned about the over-militarization of the C.I.A.,” a senior military officer who has dealt with him said recently. “And so are many at the agency, who fear they have wandered too far from the job of analyzing trends and obtaining secrets.”


John Brennan, a close aide to Mr. Obama and a former agency station chief in Saudi Arabia who has directed counterterrorism activity from his basement White House office, is also a candidate for C.I.A. director. But officials note that his current post already gives him sway over all 18 intelligence agencies.


Mr. Kerry has worked hard to deepen his relationship with Mr. Obama. The president has at times considered him long-winded and a throwback to a previous generation of diplomats, aides said. But Mr. Kerry impressed Mr. Obama and Mr. Donilon when he was sent to deal with Hamid Karzai, the famously unpredictable president of Afghanistan, after Mr. Karzai’s supporters rigged a presidential election in 2009 and refused a second round of voting.


Mr. Kerry also visited Pakistan several times to try to ease recurrent tensions, including a two-week visit after the raid that killed Osama bin Laden. Pakistani officials tried to get Mr. Kerry to write what they called a “blood oath” that the United States would never take action to seize Pakistan’s nuclear arsenal. Mr. Kerry found a diplomatic way out, saying the United States had no “designs” on Pakistan’s weapons.


“It meant nothing,” a member of Mr. Obama’s national security team said later. “And it solved the crisis. Quite artfully.”


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iPad shipments could reach 100 million in 2013






Apple (AAPL) sold 42.8 million iPad tablets into channels through the first three quarters of 2012 and the most recent estimates suggest the company could ship 26 million more iPads during the holiday quarter. If Apple does manage to hit that record, total iPad shipments on the year would reach 68.8 million units. As impressive as that would be, however, DisplaySearch analyst David Hsieh thinks 2013 iPad sales could climb as high as 100 million units as iPad mini demand explodes.


[More from BGR: Has the iPhone peaked? Apple’s iPhone 4S seen outselling iPhone 5]






In 2012, Hsieh estimates that 9.7-inch iPad panel shipments — that is, shipments of iPad displays from suppliers to Apple’s manufacturing partners —  will have totaled 70 million units, including 23 million iPad 2 displays and 47 million third- and fourth-generation iPad panels. He also believes Apple’s suppliers will ship 13.6 million iPad mini displays by the end of the year.


[More from BGR: Sony’s PlayStation 4 could lose to the next Xbox before it’s even released]


Next year, however, the analyst sees Apple hitting a major milestone.


“In 2013, it is likely that Apple will adjust its product portfolio to meet the strong demand for the iPad mini,” Hsieh wrote in a post on DisplaySearch’s blog. ”We believe that Apple is targeting total iPad shipments of 100 million in 2013, half accounted for by the iPad mini, and 40 million new iPad and 10 million iPad 2, as production continues at least until the middle of 2013.”


DisplaySearch estimates that more than 170 million tablets will ship in 2013 and Apple’s iPad will account for 60% of the market.


This article was originally published by BGR


Gadgets News Headlines – Yahoo! News





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Drew Barrymore's Baby & Miley Cyrus's Outfit Get Readers' Top Reactions















12/16/2012 at 09:30 PM EST







Drew Barrymore and Olive. Miley Cyrus


Michael Tran/Filmmagic


We love knowing what's on your mind when you read articles on PEOPLE.com, and as always, you gave us plenty of great feedback this week.

Your emotions ranged from "aww" at the photos of Drew Barrymore's daughter Olive, to "ugh" when it came to Miley Cyrus's questionable outfit choice. You also mourned the loss of a legend, singer Jenni Rivera.

Keep letting us know what's making you smile, frown, or LOL each week by clicking on the buttons at the bottom of every article.

Love You were nearly as thrilled to welcome Drew Barrymore's baby as the proud mom herself! The actress is over the moon about her new daughter Olive, and describes her feelings for her little as "like the biggest crush I've ever had in my life!"

Wow You were highly impressed by professional builder Johan Huibers's latest creation: A full-scale replica of Noah's Ark. The wooden vessel – which is 427 feet long, 95 feet wide and 75 feet high – is a feat of, well, biblical proportions!

Sad You were heartbroken over the news that Mexican-American singer Jenni Rivera was killed in a plane crash shortly after takeoff early Sunday. Rivera, who was known as the Diva of Banda and sold over 20 million albums worldwide, was 43. Her family is also mourning the tragic loss.

Angry Miley Cyrus didn't leave much to the imagination with a revealing outfit worn on stage at a concert in Hollywood. Readers were angry about the young starlet's ensemble, which consisted of tight pants, knee-high snakeskin boots and a peekaboo top that showed more than just a little cleavage.

LOL Well, this is awkward. You weren't too upset about Track Palin filing for divorce from wife Britta Hanson after a year and a half. Their parting made readers LOL. Palin, the oldest son of former Alaska governor Sarah Palin, and Hanson were former high school sweethearts.

Check back next week for another must-read roundup, and see what readers are reacting to every day here.

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Experts: No link between Asperger's, violence


NEW YORK (AP) — While an official has said that the 20-year-old gunman in the Connecticut school shooting had Asperger's syndrome, experts say there is no connection between the disorder and violence.


Asperger's is a mild form of autism often characterized by social awkwardness.


"There really is no clear association between Asperger's and violent behavior," said psychologist Elizabeth Laugeson, an assistant clinical professor at the University of California, Los Angeles.


Little is known about Adam Lanza, identified by police as the shooter in the Friday massacre at a Newtown, Conn., elementary school. He fatally shot his mother before going to the school and killing 20 young children, six adults and himself, authorities said.


A law enforcement official, speaking on condition of anonymity because the person was not authorized to discuss the unfolding investigation, said Lanza had been diagnosed with Asperger's.


High school classmates and others have described him as bright but painfully shy, anxious and a loner. Those kinds of symptoms are consistent with Asperger's, said psychologist Eric Butter of Nationwide Children's Hospital in Columbus, Ohio, who treats autism, including Asperger's, but has no knowledge of Lanza's case.


Research suggests people with autism do have a higher rate of aggressive behavior — outbursts, shoving or pushing or angry shouting — than the general population, he said.


"But we are not talking about the kind of planned and intentional type of violence we have seen at Newtown," he said in an email.


"These types of tragedies have occurred at the hands of individuals with many different types of personalities and psychological profiles," he added.


Autism is a developmental disorder that can range from mild to severe. Asperger's generally is thought of as a mild form. Both autism and Asperger's can be characterized by poor social skills, repetitive behavior or interests and problems communicating. Unlike classic autism, Asperger's does not typically involve delays in mental development or speech.


Experts say those with autism and related disorders are sometimes diagnosed with other mental health problems, such as depression, anxiety, bipolar disorder or obsessive-compulsive disorder.


"I think it's far more likely that what happened may have more to do with some other kind of mental health condition like depression or anxiety rather than Asperger's," Laugeson said.


She said those with Asperger's tend to focus on rules and be very law-abiding.


"There's something more to this," she said. "We just don't know what that is yet."


After much debate, the term Asperger's is being dropped from the diagnostic manual used by the nation's psychiatrists. In changes approved earlier this month, Asperger's will be incorporated under the umbrella term "autism spectrum disorder" for all the ranges of autism.


__


AP Writer Matt Apuzzo contributed to this report.


___


Online:


Asperger's information: http://1.usa.gov/3tGSp5


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Wall Street Week Ahead: Holiday "on standby" as clock ticks on cliff

NEW YORK (Reuters) - The last two weeks of December are traditionally quiet for stocks, but traders accustomed to a bit of time off are staying close to their mobile devices, thanks to the "fiscal cliff."


Last-minute negotiations in Washington on the so-called fiscal cliff - nearly $600 billion of tax increases and spending cuts set to take effect in January that could cause a sharp slowdown in growth or even a recession - are keeping some traders and analysts from taking Christmas holidays because any deal could have a big impact on markets.


"A lot of firms are saying to their trading desks, 'You can take days off for Christmas, but you are on standby to come in if anything happens.' This is certainly different from previous years, especially around this time of the year when things are supposed to be slowing down," said J.J. Kinahan, chief derivatives strategist at TD Ameritrade in Chicago.


"Next week is going to be a Capitol Hill-driven market."


With talks between President Barack Obama and House Speaker John Boehner at an apparent standstill, it was increasingly likely that Washington will not come up with a deal before January 1.


Gordon Charlop, managing director at Rosenblatt Securities in New York, will also be on standby for the holiday season.


"It's a 'Look guys, let's just rotate and be sensible" type of situation going on," Charlop said.


"We are hopeful there is some resolution down there, but it seems to me they continue to walk that political tightrope... rather than coming up with something."


Despite concerns that the deadline will pass without a deal, the S&P 500 has held its ground with a 12.4 percent gain for the year. For this week, though, the S&P 500 fell 0.3 percent.


BEWARE OF THE WITCH


This coming Friday will mark the last so-called "quadruple witching" day of the year, when contracts for stock options, single stock futures, stock index options and stock index futures all expire. This could make trading more volatile.


"We could see some heavy selling as there is going to be a lot of re-establishing of positions, reallocation of assets before the year-end," Kinahan said.


RETHINKING APPLE


Higher tax rates on capital gains and dividends are part of the automatic tax increases that will go into effect next year, if Congress and the White House don't come up with a solution to avert the fiscal cliff. That possibility could give investors an incentive to unload certain stocks in some tax-related selling by December 31.


Some market participants said tax-related selling may be behind the weaker trend in the stock price of market leader Apple . Apple's stock has lost a quarter of its value since it hit a lifetime high of $705.07 on September 21.


On Friday, the stock fell 3.8 percent to $509.79 after the iPhone 5 got a chilly reception at its debut in China and two analysts cut shipment forecasts. But the stock is still up nearly 26 percent for the year.


"If you owned Apple for a long time, you should be thinking about reallocation as there will be changes in taxes and other regulations next year, although we don't really know which rules to play by yet," Kinahan said.


But one indicator of the market's reduced concern about the fiscal cliff compared with a few weeks ago, is the defense sector, which will be hit hard if the spending cuts take effect. The PHLX Defense Sector Index <.dfx> is up nearly 13 percent for the year, and sits just a few points from its 2012 high.


(Reporting by Angela Moon; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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The Hard Road Back: Chaplain with Traumatic Brain Injuries, Finds Tables Turned




A Counselor in Need:
Sent home from Iraq, Lt. Col. Richard Brunk, an Army chaplain, returned to Houston, where he is learning to cope with a serious brain injury.







It was Lt. Col. Richard Brunk’s second Sunday in Baghdad, and so, of course, there was church. Only 16 soldiers showed up, but that was good for that busy day, election day across Iraq. The presiding chaplain asked everyone to take seats up front. It was a providential move.




A 122-millimeter rocket exploded outside, virtually collapsing the rear of the chapel. Colonel Brunk was pitched forward, an outstretched arm failing to stop his head from hitting the marble floor. Gathering himself amid the chaos, he noticed some foil-wrapped chocolates scattered like pebbles before him and offered one to the chaplain, sprawled on the ground nearby.


“If I’m going to die, it’s going to be with chocolate on my breath,” the colonel said jokingly. The chaplain moved his lips in reply. “And I realized: ‘Uh oh, I’ve got a problem,’ ” Colonel Brunk recalled. “Because I couldn’t hear him.”


The explosion broke Colonel Brunk’s wrist, shattered both his eardrums and rattled his skull, medical records show. It would be the first of two major blasts in 2005 that traumatically injured his brain.


Seven years later, the symptoms have not gone away. Colonel Brunk, who retired from the Army this summer, regained his hearing, but he still has daily headaches, ringing in his ears, double vision and dizziness, all typical of traumatic brain injury, or T.B.I. Occasionally he struggles to remember once-familiar words, faces and names.


The military says it has diagnosed more than 260,000 cases of T.B.I. since 2000, about 42,000 of them involving deployed troops. That is less than 2 percent of the service members sent to Iraq and Afghanistan, and many experts believe that the actual number is higher. Though three in four of those cases were labeled “mild,” many veterans like Colonel Brunk have struggled with powerful aftereffects for years.


In his case, age has been a factor. A chaplain himself, Colonel Brunk was 54 when he was injured, a rarity in these wars, where 99 percent of the 2.3 million troops who deployed to Iraq or Afghanistan were under 50. Now 62, he faces a much steeper path to recovery than a younger person, doctors say.


But emerging research shows that traumatic brain injuries may have long-term effects on troops of all ages. A study by the University of Oklahoma this year, for instance, found that a majority of veterans treated at a traumatic brain injury clinic continued having headaches, dizziness and poor coordination eight years after their injuries.


Data from the Center for the Study of Traumatic Encephalopathy at Boston University suggests that multiple traumatic brain injuries during one’s youth may be linked to degenerative brain disease later in life.


Colonel Brunk’s story underscores another important issue: how poorly the military understood brain injuries early in the wars.


Since 2009, the Pentagon has required troops suspected of having head injuries to rest immediately after blast exposure, a crucial period when brains can often heal themselves, doctors say.


But in 2005, Colonel Brunk was allowed to return to work within hours of his first exposure. When doctors eventually recognized that he had neurological damage, he was sent home for about three months but was treated mainly for hearing problems. He was then permitted to return to Iraq, at his own request, where he had a second, potentially devastating head injury.


He had gone to war not expecting to experience warfare quite so intimately. But once he was hurt, he was determined to rejoin his battalion and finish the tour with his flock. And like many of those soldiers, he did his level best to ignore injury, pain and, eventually, a collapsing marriage.


“I went to Iraq a chaplain,” Colonel Brunk says. “But I came home a soldier.”


But to those close to him, his dogged good cheer was a mask that did not always serve him well. “People look at him and say, ‘That’s Chaplain Brunk, he can’t be having problems,’ ” said Kathy Curry, a close friend. “But he’s got problems at home. He’s got T.B.I. He’s got pain.”


And so, not long after meeting him, Ms. Curry felt compelled to ask: Who counsels you? Who counsels the counselor?


The answer, for a time at least, was nobody.


He had wanted to be a doctor, but college microbiology killed that notion. So he followed his father, an Army chaplain, into the ministry, leading Texas parishes of the Evangelical Lutheran Church while volunteering as chaplain for fire departments and hospitals. But the military, a family tradition, called.


In the fall of 1989, Colonel Brunk found himself chatting with an Army chaplain recruiter at a church convention in New Orleans. By the end of their stroll down Bourbon Street, the minister had signed on for the Texas National Guard. He was 39.


Read More..

U.S. gun website sued for alleged ties to slayings






CHICAGO (Reuters) – A prominent U.S. gun control group on Wednesday sued a gun auction website it says is linked to a mass shooting at a Wisconsin spa in October and the stalker slaying of a woman near Chicago in 2011.


The Brady Center to Prevent Gun Violence alleges that the design of armslist.com facilitates illegal online sales to unlawful gun buyers with no background checks, and enables users to evade laws that permit private sellers to sell guns only to residents of their own state.






“We as a nation are better than an anonymous Internet gun market where killers and criminals can easily get guns,” said Jonathan Lowy, the Brady Center’s Legal Action Project Director, in a statement.


The wrongful death lawsuit was filed in Cook County Circuit Court on behalf of the family of Jitka Vesel, 36, an immigrant from the Czech Republic who was shot and killed last year by Demetry Smirnov, a stalker.


The suit, which the Brady Center says is the first of its kind, alleges that Smirnov illegally bought the gun from a private seller he located through armslist.com.


Vesel was killed in the parking lot of the Chicago-area Czechoslovak Heritage Museum, where she was a volunteer preparing for a celebration in memory of Czech-American Chicago Mayor Anton Cermak.


Cermak was slain with a handgun during an attempted assassination of President Franklin D. Roosevelt in 1933.


A representative for website owner Armslist, LLC was not immediately available for comment. The company is based in Noble, Oklahoma, according to public records.


The website includes a “terms of use” page on which users must promise they are age 18 or older and will not use the site for illegal purposes.


The Brady Center said that the case does not infringe on the Second Amendment right to bear arms, noting that 74 percent of National Rifle Association members believe that no guns should be sold without a criminal background check.


A representative for the NRA was not immediately available for comment.


Radcliffe Haughton, who killed his estranged wife and two other women and wounded four others before killing himself in a shooting in a Milwaukee suburb on October 21, also got his weapon through armslist.com, according to Wisconsin officials.


Haughton, who was under a restraining order for domestic violence, avoided a background check through a “lethal loophole” by buying a gun through the website, according to a letter to Armslist sent by Milwaukee Mayor Tom Barrett and Wisconsin U.S. Representative Gwen Moore on October 26.


Sales conducted over the Internet also have been linked to mass killings at Virginia Tech and Northern Illinois University. In 1999 eBay announced it was prohibiting online gun sales, according to the Brady Center lawsuit.


Craigslist did the same in 2007. Amazon.com and Google AdWords also prohibits the listing of firearms for sale, the suit says.


An undercover investigation of online gun sales by New York City last year found that 62 percent of private gun sellers agreed to sell a firearm to a buyer who said he probably could not pass a background check.


(Reporting By Mary Wisniewski; Editing by Greg McCune and Xavier Briand)


Internet News Headlines – Yahoo! News


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Donald Faison Marries Cacee Cobb















12/15/2012 at 08:25 PM EST







Cacee Cobb and Donald Faison


Dr. Billy Ingram/WireImage


It's official!

After six years together, Donald Faison and Cacee Cobb were married Saturday night at the Los Angeles home of his Scrubs costar Zach Braff.

Cobb's friend Jessica Simpson was a bridesmaid. Sister Ashlee Simpson also attended.

"What a happy day," Tweeted groomsman Joshua Radin, a singer, who posted a photo of himself with Faison and Braff in their tuxedos.

The couple got engaged in August 2011. At the time, Faison Tweeted, "If you like it then you better put a Ring on it," and Cobb replied, "If she likes it then she better say YES!!"

Since then, the couple had been hard at work planning their wedding. On Nov. 12, Faison, who currently stars on The Exes, Tweeted that they were tasting cocktails to be served on the big day.

"Alcohol tasting for the wedding!" he wrote, adding a photo of the drinks. "The [sic] Ain't Say It Was Going To Be Like This!!!"

This is the first marriage for Cobb. Faison was previously married to Lisa Askey, with whom he has three children. (He also has a son from a previous relationship.)

Read More..

Experts: No link between Asperger's, violence


NEW YORK (AP) — While an official has said that the 20-year-old gunman in the Connecticut school shooting had Asperger's syndrome, experts say there is no connection between the disorder and violence.


Asperger's is a mild form of autism often characterized by social awkwardness.


"There really is no clear association between Asperger's and violent behavior," said psychologist Elizabeth Laugeson, an assistant clinical professor at the University of California, Los Angeles.


Little is known about Adam Lanza, identified by police as the shooter in the Friday massacre at a Newtown, Conn., elementary school. He fatally shot his mother before going to the school and killing 20 young children, six adults and himself, authorities said.


A law enforcement official, speaking on condition of anonymity because the person was not authorized to discuss the unfolding investigation, said Lanza had been diagnosed with Asperger's.


High school classmates and others have described him as bright but painfully shy, anxious and a loner. Those kinds of symptoms are consistent with Asperger's, said psychologist Eric Butter of Nationwide Children's Hospital in Columbus, Ohio, who treats autism, including Asperger's, but has no knowledge of Lanza's case.


Research suggests people with autism do have a higher rate of aggressive behavior — outbursts, shoving or pushing or angry shouting — than the general population, he said.


"But we are not talking about the kind of planned and intentional type of violence we have seen at Newtown," he said in an email.


"These types of tragedies have occurred at the hands of individuals with many different types of personalities and psychological profiles," he added.


Autism is a developmental disorder that can range from mild to severe. Asperger's generally is thought of as a mild form. Both autism and Asperger's can be characterized by poor social skills, repetitive behavior or interests and problems communicating. Unlike classic autism, Asperger's does not typically involve delays in mental development or speech.


Experts say those with autism and related disorders are sometimes diagnosed with other mental health problems, such as depression, anxiety, bipolar disorder or obsessive-compulsive disorder.


"I think it's far more likely that what happened may have more to do with some other kind of mental health condition like depression or anxiety rather than Asperger's," Laugeson said.


She said those with Asperger's tend to focus on rules and be very law-abiding.


"There's something more to this," she said. "We just don't know what that is yet."


After much debate, the term Asperger's is being dropped from the diagnostic manual used by the nation's psychiatrists. In changes approved earlier this month, Asperger's will be incorporated under the umbrella term "autism spectrum disorder" for all the ranges of autism.


__


AP Writer Matt Apuzzo contributed to this report.


___


Online:


Asperger's information: http://1.usa.gov/3tGSp5


Read More..

Wall Street Week Ahead: Holiday "on standby" as clock ticks on cliff

NEW YORK (Reuters) - The last two weeks of December are traditionally quiet for stocks, but traders accustomed to a bit of time off are staying close to their mobile devices, thanks to the "fiscal cliff."


Last-minute negotiations in Washington on the so-called fiscal cliff - nearly $600 billion of tax increases and spending cuts set to take effect in January that could cause a sharp slowdown in growth or even a recession - are keeping some traders and analysts from taking Christmas holidays because any deal could have a big impact on markets.


"A lot of firms are saying to their trading desks, 'You can take days off for Christmas, but you are on standby to come in if anything happens.' This is certainly different from previous years, especially around this time of the year when things are supposed to be slowing down," said J.J. Kinahan, chief derivatives strategist at TD Ameritrade in Chicago.


"Next week is going to be a Capitol Hill-driven market."


With talks between President Barack Obama and House Speaker John Boehner at an apparent standstill, it was increasingly likely that Washington will not come up with a deal before January 1.


Gordon Charlop, managing director at Rosenblatt Securities in New York, will also be on standby for the holiday season.


"It's a 'Look guys, let's just rotate and be sensible" type of situation going on," Charlop said.


"We are hopeful there is some resolution down there, but it seems to me they continue to walk that political tightrope... rather than coming up with something."


Despite concerns that the deadline will pass without a deal, the S&P 500 has held its ground with a 12.4 percent gain for the year. For this week, though, the S&P 500 fell 0.3 percent.


BEWARE OF THE WITCH


This coming Friday will mark the last so-called "quadruple witching" day of the year, when contracts for stock options, single stock futures, stock index options and stock index futures all expire. This could make trading more volatile.


"We could see some heavy selling as there is going to be a lot of re-establishing of positions, reallocation of assets before the year-end," Kinahan said.


RETHINKING APPLE


Higher tax rates on capital gains and dividends are part of the automatic tax increases that will go into effect next year, if Congress and the White House don't come up with a solution to avert the fiscal cliff. That possibility could give investors an incentive to unload certain stocks in some tax-related selling by December 31.


Some market participants said tax-related selling may be behind the weaker trend in the stock price of market leader Apple . Apple's stock has lost a quarter of its value since it hit a lifetime high of $705.07 on September 21.


On Friday, the stock fell 3.8 percent to $509.79 after the iPhone 5 got a chilly reception at its debut in China and two analysts cut shipment forecasts. But the stock is still up nearly 26 percent for the year.


"If you owned Apple for a long time, you should be thinking about reallocation as there will be changes in taxes and other regulations next year, although we don't really know which rules to play by yet," Kinahan said.


But one indicator of the market's reduced concern about the fiscal cliff compared with a few weeks ago, is the defense sector, which will be hit hard if the spending cuts take effect. The PHLX Defense Sector Index <.dfx> is up nearly 13 percent for the year, and sits just a few points from its 2012 high.


(Reporting by Angela Moon; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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