Rape Incites Women to Fight Culture in India


Andrew Caballero-Reynolds/Agence France-Presse — Getty Images


A candlelight gathering after the cremation on Sunday blocked a road in New Delhi, the city where the Dec. 16 rape occurred.







NEW DELHI — Neha Kaul Mehra says she was only 7 years old the first time she was sexually harassed. She was walking to a dance class in an affluent neighborhood of New Delhi when a man confronted her and began openly masturbating.




That episode was far from the last. Years of verbal and physical sexual affronts left Ms. Mehra, now 29, filled with what she described as “impotent rage.”


Last week, she and thousands of Indian women like her poured that anger into public demonstrations, reacting to news of the gang rape of another young woman who had moved to the city from a small village, with a new life in front of her.


That woman, a 23-year-old physiotherapy student, died Saturday from internal injuries inflicted with a metal rod during the rape, which took place on a bus two weeks ago.


In her story and its brutal ending, many women in the world’s largest democracy say they see themselves.


“That girl could have been any one of us,” said Sangeetha Saini, 44, who took her two teenage daughters to a candle-filled demonstration on Sunday in Delhi. Women in India “face harassment in public spaces, streets, on buses,” she said. “We can only tackle this by becoming Durga,” she added, referring to the female Hindu god who slays a demon.


Indian women have made impressive gains in recent years: maternal mortality rates have dropped, literacy rates and education levels have risen, and millions of women have joined the professional classes. But the women at the heart of the protest movement say it was born of their outraged realization that no matter how accomplished they become, or how hard they work, women here will never fully take part in the promise of a new and more prosperous India unless something fundamental about the culture changes.


Indeed, many women in India say they are still subject to regular harassment and assault during the day and are fearful of leaving their homes alone after dark. Now they are demanding that the government, and a police force that they say offers women little or no protection, do something about it.


Ankita Cheerakathil, 20, a student at St. Stephen’s College who attended a protest on Thursday, remembered dreading the daily bus ride when she was in high school in the southern state of Kerala. Before she stepped outside her house, she recalled, she would scrutinize herself in a mirror, checking to see whether her blouse was too tight. At the bus stop, inevitably, men would zero in on the schoolgirls in their uniforms, some as young as 10, to leer and make cracks filled with sexual innuendo.


“This is not an isolated incident,” Ms. Cheerakathil said of the death of the New Delhi rape victim. “This is the story of every Indian woman.”


While the Dec. 16 attack was extreme in its savagery, gang rapes of women have been happening with frightening regularity in recent months, particularly in northern India. Critics say the response from a mostly male police force is often inadequate at best.


Last week, an 18-year-old woman in Punjab State committed suicide by drinking poison after being raped by two men and then humiliated by male police officers, who made her describe her attack in detail several times, then tried to encourage her to marry one of her rapists. Dozens more gang rapes have been reported in the states of Haryana, Bihar and Uttar Pradesh in recent months.


The government does not keep statistics on gang rape, but over all, rapes increased 25 percent from 2006 to 2011. More than 600 rapes were reported in New Delhi alone in 2012. So far, only one attack has resulted in a conviction.


Sociologists and crime experts say the attacks are the result of deeply entrenched misogynistic attitudes and the rising visibility of women, underpinned by long-term demographic trends in India.


After years of aborting female fetuses, a practice that is still on the rise in some areas because of a cultural preference for male children, India has about 15 million “extra” men between the ages of 15 and 35, the range when men are most likely to commit crimes. By 2020, those “extra” men will have doubled to 30 million.


“There is a strong correlation between masculinized sex ratios and higher rates of violent crime against women,” said Valerie M. Hudson, a co-author of “Bare Branches: The Security Implications of Asia’s Surplus Male Population.” Men who do not have wives and families often gather in packs, Ms. Hudson argues, and then commit more gruesome and violent crimes than they would on their own.


Reporting was contributed by Malavika Vyawahare, Anjani Trivedi, Niharika Mandhana and Saritha Rai.



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Autonomy’s Lynch defends record as HP confirms Federal probe






LONDON (Reuters) – Mike Lynch, the founder of the software firm sold to Hewlett-Packard last year in a deal tainted by accusations of accounting fraud, said he would defend the company’s accounts to U.S. Federal investigators.


HP confirmed in a filing late on Thursday that the U.S. Department of Justice was investigating Autonomy‘s books.






The PC and printer maker bought the British company for $ 11 billion last year to lead its push into the more profitable software sector.


Autonomy did not deliver the growth expected, resulting in Lynch’s departure earlier this year.


But worse was to come last month when HP wrote off some $ 5 billion of the company’s value and accused its former management of accounting improprieties that inflated its value.


The Silicon Valley company said it had passed information from a whistleblower to the U.S. Department of Justice, the SEC and Britain’s Serious Fraud Office.


“On November 21, 2012, representatives of the U.S. Department of Justice advised HP that they had opened an investigation relating to Autonomy,” it said in the filing.


“HP is cooperating with the three investigating agencies.”


Lynch launched a robust defense of his track record almost immediately after HP made the accusations.


He said on Friday that he was still waiting for a detailed calculation of HP’s $ 5 billion writedown of Autonomy’s value and a published explanation of the allegations.


“Simply put these allegations are false, and in the absence of further detail we cannot understand what HP believes to be the basis for them,” he said in a statement.


“We continue to reject these allegations in the strongest possible terms. Autonomy’s financial accounts were properly maintained in accordance with applicable regulations, fully audited by Deloitte and available to HP during the due diligence process.”


Lynch said he had not been approached by any regulatory authority, but he would co-operate with any investigation and looked forward to the opportunity to explain his position.


HP has refused to concede to Lynch’s demands for more information about the allegations.


“While Dr. Lynch is eager for a debate, we believe the legal process is the correct method in which to bring out the facts and take action on behalf of our shareholders,” it said in response to an open letter from Lynch last month


“In that setting, we look forward to hearing Dr. Lynch and other former Autonomy employees answer questions under penalty of perjury.”


(Reporting by Paul Sandle; Editing by Helen Massy-Beresford)


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Dick Clark New Year's Eve Love Story - Same Couple Dancing Since 1972















12/30/2012 at 02:45 PM EST



This New Year's Eve will be just like any other for Kathy and Louie Novoa, except without their dear friend Dick Clark, who passed away in April.

The pair met on American Bandstand and have since taken part in every one of his New Year's Rockin' Eves since they began on the Queen Mary in 1972.

"To be there from the very first one he did and to still be a part of it, I think, wow, I can't believe it," Louie tells PEOPLE. "I still have the original invitation to the very first one."

As for being a part of Rockin' Eve for the first time since Clark's death, Kathy says, "It's very sad and heartbreaking to know he started this tradition and was so important in so many homes. Everybody watches Dick Clark's New Year's Eve. It's very hard [with him gone], but it's also great knowing that it's still going on. That's what he would want."

Dick Clark New Year's Eve Love Story – Same Couple Dancing Since 1972| Dick Clark's New Year's Rockin' Eve, Dick Clark

Kathy and Louie Novoa with Dick Clark in 1976

Courtesy Louie Novoa

Now officially a couple for 36 years, Louie says that starting the New Year with a kiss is his favorite tradition on the show, which kicks off at 8 p.m. ET/PT this year on ABC.

"Kathy and I started doing it, and right after that, Dick's wife Kari [Wigton] goes, 'Why don't we follow up with that?' " he says. "It became a tradition. We had a lot of clips of that. That's what we're going to miss. We always looked forward to that."

The happy pair, who declined to provide their age, would only joke about it.

"People ask us, 'How old are you? You don't look that old,' " Louie explained with a chuckle. "I say, 'We've been around for a while. We are [old].' We really are. You can tell on the dance floor. We're out there dancing with the kids. We call them kids because we try to blend in with them. We still have it though."

Although Louie says they miss Clark "every day," he is a big fan of his replacement, Ryan Seacrest.

"He's incredible," he says. "He's awesome. He does a great job and he has the same personality as Dick Clark. He gets along with everybody."

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Kenya hospital imprisons new mothers with no money


NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.


Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.


Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.


"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."


"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."


The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.


Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.


"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.


She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.


A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.


"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.


Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.


One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.


Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.


___


Associated Press reporter Tom Odula contributed to this report.


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Fiscal deal stalls as clock ticks to deadline


WASHINGTON (Reuters) - Efforts to prevent the economy from tumbling over a "fiscal cliff" stalled on Sunday as Democrats and Republicans remained at loggerheads over a deal that would prevent taxes for all Americans from rising on New Year's Day.


One hour before they had hoped to present a plan, Democratic and Republican leaders said were still unable to reach a compromise that would stop the automatic tax hikes and spending cuts that could push the economy into recession.


"There are still serious differences between the two sides," Senate Democratic Leader Harry Reid said.


A sticking point appeared to be a Republican proposal floated late on Saturday, which would slow the growth of Social Security retirement benefits in an effort to narrow trillion-dollar budget deficits. Many Democrats, including Reid, have said Social Security should not be touched.


With negotiations at an apparent standstill on Capitol Hill, Senate Republican Leader Mitch McConnell said he would now try to hammer out an agreement with Vice President Joe Biden.


"I'm willing to get this done, but I need a dance partner," McConnell said.


Any agreement needs to be rushed through both chambers of Congress before midnight on Monday. Even if the two sides reach an agreement, procedural barriers in the Senate and the House of Representatives make quick action difficult.


If the politicians cannot agree, then tax increases and across-the-board government spending cuts will begin on January 1. That would take $600 billion out of the economy, push unemployment up and curb federal spending.


Another major disagreement was over tax hikes on the wealthy, an increase sought by President Barack Obama but opposed by Republicans, particularly fiscal conservatives in the House of Representatives.


Republicans aim to pair any tax increase with spending cuts to benefit programs that are projected to grow ever more expensive as the population ages in coming decades.


But their proposal to slow the growth of Social Security benefits by changing the way they are measured against inflation met fierce resistance from Democrats. Obama included the proposal, known as "chained CPI," in an earlier proposal, but many of his fellow Democrats remain opposed.


"POISON PILL"


"We consider it a poison pill - they know we can't accept it. It is a big step back from where we were on Friday," a Senate Democratic aide said.


Obama made a rare appearance on NBC's "Meet the Press" to pressure lawmakers into forging a deal.


Senators appearing on other Sunday morning shows expressed optimism that an agreement could be reached.


Republican Senator Lindsey Graham conceded that an agreement would end up raising income taxes on the wealthy, thus sparing the rest of the country from the looming income tax hikes.


"President Obama is going to get tax rate increases. The president won," Graham tweeted, echoing earlier comments he made on "Fox News Sunday." He told the show that the chances of a bipartisan deal before the New Year's deadline were "exceedingly good."


Obama has alternatively offered Republicans a deal to increase income taxes for households earning over $250,000 a year, and over $400,000 a year.


A White House aide said the president and his staff had been in touch with congressional leaders through the weekend.


Any deal on taxes in the Senate might meet resistance in the House from conservative Republicans.


On NBC, Obama warned of the fallout in financial markets if the two sides did not reach an agreement.


"If people start seeing that on January 1st this problem still hasn't been solved, that we haven't seen the kind of deficit reduction that we could have, had the Republicans been willing to take the deal that I gave them ... then obviously that's going to have an adverse reaction in the markets," Obama said, adding that he had offered Republicans significant compromises that had been rejected repeatedly.


He said he would avoid tax increases for most Americans, even if the talks fall apart.


"If Republicans do in fact decide to block it, so that taxes on middle class families do in fact go up on January 1st, then we'll come back with a new Congress on January 4th and the first bill that will be introduced on the floor will be to cut taxes on middle class families," Obama said.


John Boehner, the speaker of the House of Representatives, rejected Obama's accusations that Republicans were not being amenable to compromise.


"The president's comments today are ironic, as a recurring theme of our negotiations was his unwillingness to agree to anything that would require him to stand up to his own party," Boehner, who has had trouble convincing his Republican colleagues to support his own proposals, said in a statement.


(Additional reporting by Tabassum Zakaria, Rachelle Younglai, David Lawder, Fred Barbash and Richard Cowan. Writing by Andy Sullivan, Editing by Alistair Bell and Jackie Frank)



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Pakistan Bomb Kills at Least 19 Shiite Pilgrims





ISLAMABAD, Pakistan — At least 19 Shiite pilgrims, including four women, were killed Sunday when their convoy of three buses in southwestern Pakistan was struck by a remotely detonated bomb, officials said. At least 25 other people were wounded in the attack in the Mastung district of Baluchistan Province.







Banaras Khan/Agence France-Presse — Getty Images

A remotely detonated bomb struck a convoy of three buses in southwestern Pakistan on Sunday, killing at least 19 Shiite Muslim pilgrims.







Banaras Khan/Agence France-Presse — Getty Images

Hospital workers put identification tags on the bodies of Shiite pilgrims killed in the bombing near Quetta.






Earlier Sunday, government officials said they had discovered the bodies of 21 tribal police officers who were kidnapped by the Taliban last week in northwestern Pakistan.


The pilgrims were on their way to Shiite holy sites in neighboring Iran when the attack occurred. A pickup truck filled with explosives was detonated by remote control as the pilgrims’ convoy passed by on Sunday morning. The explosion destroyed one bus and damaged the other two. The wounded were taken to a hospital in the provincial capital, Quetta, officials said.


“Most of the dead bodies are completely burned,” said Maj. Nadir Ali, a retired army officer and a senior leader in the ethnic Hazara community.


Major Ali said the pilgrims had traveled from different cities and stayed in Quetta overnight before embarking on the 500-mile journey to Zahedan, Iran.


No group claimed responsibility for the attack, but Shiite Muslims sect have repeatedly been singled out by extremist Sunni militants belonging to the banned group Lashkar-e-Jhangvi, which has links to Pakistani Taliban militants in the tribal areas.


Pakistan’s Shiites have long complained that despite repeated assurances, the government has offered inadequate security and failed to protect them. In Baluchistan Province, sectarian attacks have often been directed at the ethnic Hazaras, a Persian-speaking Shiite minority. More than 300 Shiites, many of them Hazaras, have been killed in Baluchistan since 2008, according to Human Rights Watch.


Major Ali, the Hazara leader, said the Mastung district was a particularly dangerous point on the trip to Iran because the Lashkar-e-Jhangvi had a strong presence there. In the fall of 2011, militants there dragged 26 Hazara men and boys from a bus headed to Iran and executed them. 


“Security is not satisfactory,” Major Ali said.


In northwestern Pakistan, 21 police officers who had been captured by Taliban militants were found shot to death late Saturday night on the outskirts of Peshawar, government officials said Sunday.


The bodies were lined up in a field and had been shot at close range, the officials said. One officer was found wounded and was taken to a hospital.


The officers, who belonged to a tribal police force, were abducted Thursday after hundreds of Taliban militants armed with heavy weapons attacked three security checkpoints on the outskirts of Peshawar.


Government officials had asked local elders to help them negotiate the release of the police officers, but those efforts were unsuccessful.


A group affiliated with the Taliban that operates in the Darra Adam Khel region claimed responsibility for the abduction of the officers.


Pakistani analysts say independent groups of militants are battling the security forces, complicating an already difficult battle against terrorism and militancy.


Last week, Hakimullah Mehsud, the leader of the Pakistani Taliban, appeared in a video and laid down several conditions for negotiations with the government. While indicating that the Taliban were willing to talk, Mr. Mehsud said the militants would not put down their arms.


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NORAD Santa trackers draw record number of phone calls, social media followers






PETERSON AIR FORCE BASE, Colo.NORAD says it drew a record number of phone calls and social media followers during its NORAD Tracks Santa operation on Christmas Eve.


The North American Aerospace Defence Command said Friday volunteers answered more than 114,000 calls, up 12,000 from 2011.






NORAD’s Santa Facebook page had more than 1.2 million followers, up from about 1 million last year. More than 129,000 people followed on Twitter, up from 101,000 last year.


NORAD got 11,000 emails, up from 7,700 in 2011.


More than 1,250 volunteers answered phone calls, including first lady Michelle Obama.


NORAD Tracks Santa began in 1955 when a newspaper listed the wrong number for children to call Santa. They wound up calling the Continental Air Defence Command, NORAD’s predecessor.


The operation is based at Peterson Air Force Base, Colo.


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Emily Maynard's Cat Gets a Haircut - Like a Lion!















12/28/2012 at 04:00 PM EST







Emily Maynard and her cat Safari


Courtesy Emily Maynard; Inset:Craig Sjodin/ABC


Emily Maynard's cat Safari was named for a wilderness expedition – and now the feline looks like he could roam wild in one.

In a Twitter photo Maynard shared Thursday, the cat's fur has been fashioned into a lion's mane.

"Safari has never been happier. Really. I swear. #grumpycat," she Tweeted.

It sounds like both of the single mom's felines are sporting the new do.

"I just dropped Holly and Safari off to get their lion haircuts," she replied on Thursday to her Twitter friend, @BoMartini. "Get ready for your phone to be filled with even more cat pics."

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Kenya hospital imprisons new mothers with no money


NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.


Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.


Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.


"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."


"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."


The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.


Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.


"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.


She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.


A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.


"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.


Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.


One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.


Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.


___


Associated Press reporter Tom Odula contributed to this report.


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Wall Street ends sour week with 5th straight decline

NEW YORK (Reuters) - Stocks fell for a fifth straight day on Friday, dropping 1 percent and marking the S&P 500's longest losing streak in three months as the federal government edged closer to the "fiscal cliff" with no solution in sight.


President Barack Obama and top congressional leaders met at the White House to work on a solution for the draconian debt-reduction measures set to take effect beginning next week. Stocks, which have been influenced by little else than the flood of fiscal cliff headlines from Washington in recent days, extended losses going into the close with the Dow Jones industrial average and the S&P 500 each losing 1 percent, after reports that Obama would not offer a new plan to Republicans. The Dow closed below 13,000 for the first time since December 4.


"I was stunned Obama didn't have another plan, and that's absolutely why we sold off," said Mike Shea, managing partner at Direct Access Partners LLC in New York. "He's going to force the House to come to him with something different. I think that's a surprise. The entire market is disappointed in a lack of leadership in Washington."


In a sign of investor anxiety, the CBOE Volatility Index <.vix>, known as the VIX, jumped 16.69 percent to 22.72, closing at its highest level since June. Wall Street's favorite fear barometer has risen for five straight weeks, surging more than 40 percent over that time.


The Dow Jones industrial average <.dji> dropped 158.20 points, or 1.21 percent, to 12,938.11 at the close. The Standard & Poor's 500 Index <.spx> lost 15.67 points, or 1.11 percent, to 1,402.43. The Nasdaq Composite Index <.ixic> fell 25.59 points, or 0.86 percent, to end at 2,960.31.


For the week, the Dow fell 1.9 percent. The S&P 500 also lost 1.9 percent for the week, marking its worst weekly performance since mid-November. The Nasdaq finished the week down 2 percent. In contrast, the VIX jumped 22 percent for the week.


Pessimism continued after the market closed, with stock futures indicating even steeper losses. S&P 500 futures dropped 26.7 points, or 1.9 percent, eclipsing the decline seen in the regular session.


All 10 S&P 500 sectors fell during Friday's regular trading, with most posting declines of 1 percent, but energy and material shares were among the weakest of the day, with both groups closely tied to the pace of growth.


An S&P energy sector index <.gspe> slid 1.8 percent, with Exxon Mobil down 2 percent at $85.10, and Chevron Corp off 1.9 percent at $106.45. The S&P material sector index <.gspm> fell 1.3 percent, with U.S. Steel Corp down 2.6 percent at $23.03.


Decliners outnumbered advancers by a ratio of slightly more than 2 to 1 on the New York Stock Exchange, while on the Nasdaq, two stocks fell for every one that rose.


"We've been whipsawing around on low volume and rumors that come out on the cliff," said Eric Green, senior portfolio manager at Penn Capital Management in Philadelphia, who helps oversee $7 billion in assets.


With time running short, lawmakers may opt to allow the higher taxes and across-the-board federal spending cuts to go into effect and attempt to pass a retroactive fix soon after the new year. Standard & Poor's said an impasse on the cliff wouldn't affect the sovereign credit rating of the United States.


"We're not as concerned with January 1 as the market seems to be," said Richard Weiss, senior money manager at American Century Investments, in Mountain View, California. "Things will be resolved, just maybe not on a good timetable, and any deal can easily be retroactive."


Trading volume was light throughout the holiday-shortened week, with just 4.46 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT on Friday, below the daily average so far this year of about 6.48 billion shares. On Monday, the U.S. stock market closed early for Christmas Eve, and the market was shut on Tuesday for Christmas. Many senior traders were absent this week for the holidays.


Highlighting Wall Street's sensitivity to developments in Washington, stocks tumbled more than 1 percent on Thursday after Senate Majority Leader Harry Reid warned that a deal was unlikely before the deadline. But late in the day, stocks nearly bounced back when the House said it would hold an unusual Sunday session to work on a fiscal solution.


Positive economic data failed to alter the market's mood.


The National Association of Realtors said contracts to buy previously owned U.S. homes rose in November to their highest level in 2-1/2 years, while a report from the Institute for Supply Management-Chicago showed business activity in the U.S. Midwest expanded in December.


"Economic reports have been very favorable, and once Congress comes to a resolution, the market should resume an upward trend, based on the data," said Weiss, who helps oversee about $125 billion in assets. "All else being equal, we see any further decline as a buying opportunity."


Barnes & Noble Inc rose 4.3 percent to $14.97 after the top U.S. bookstore chain said British publisher Pearson Plc had agreed to make a strategic investment in its Nook Media subsidiary. But Barnes & Noble also said its Nook business will not meet its previous projection for fiscal year 2013.


Shares of magicJack VocalTec Ltd jumped 10.3 percent to $17.95 after the company gave a strong fourth-quarter outlook and named Gerald Vento president and chief executive, effective January 1.


The U.S.-listed shares of Canadian drugmaker Aeterna Zentaris Inc surged 13.8 percent to $2.47 after the company said it had reached an agreement with the U.S. Food and Drug Administration on a special protocol assessment by the FDA for a Phase 3 registration trial in endometrial cancer with AEZS-108 treatment.


(Reporting by Ryan Vlastelica; Editing by Jan Paschal)



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