Afghanistan Releases Detainees Ahead of Trip by Karzai to Washington





KABUL, Afghanistan — Just ahead of a trip to Washington by President Hamid Karzai, the Afghan government released 80 detainees on Friday, part of a continuing effort to assert its sovereignty over the contentious issue of how prisoners are handled.




American officials have long complained that the Afghans release prisoners too soon, raising the risk that many will return to the battlefield. Afghan officials counter that they are not legally allowed to detain people suspected of being insurgents without enough evidence to prosecute them, even if the Americans say they are too dangerous to release.


The releases stem from an agreement the Americans made to eventually transfer control of the Parwan Detention Facility, located at Bagram Air Base, to the Afghan government last March. Of the thousands of prisoners captured by American forces who have come under Afghan control, close to 1,000 have been released over the last year.


But Friday was a rare instance when the government made a public spectacle of releasing a large number together. A fleet of local television journalists lined up to film the ceremony, where the prisoners, dressed in new brown, yellow and blue shalwars, embraced family members most had not seen in more than a year.


“The Afghan government is not trying to open the gates of its prisons and release all prisoners,” said Gen. Ghulam Farooq, the superintendent of the Bagram Prison, which holds about 3,000 prisoners. “Those who are found guilty will be punished, but those who are innocent should be released.”


But, he added, “we don’t know how many are guilty and how many are innocent,” a reference to the limited evidence that, Afghan officials contend, makes holding the prisoners impossible under Afghan law.


Despite the government’s upbeat ceremony, the transfer of the prison has become a considerable source of tension as the Americans prepare to withdraw and Afghans take on increasing control over security in the country. The United States halted the transfer of a handful of detainees in September, arguing that the Afghan government had not held up its end of the deal. Two months later, Mr. Karzai ordered Afghan forces to take control of the American-built prison, although that has still not happened entirely.


On Friday, General Farooq dismissed the notion that the release of the detainees was contentious, saying it was part of the plan all along.


“The Afghan government and the Americans agreed that Americans would hand all prisoners to the Afghan government and that we would make a decision about keeping and releasing them based on the enforced laws of Afghanistan,” said General Farooq. “It is a 100 percent Afghan process, and the Americans don’t have any problem with it. They are not involved in it at all.”


American officials have disputed the Afghan interpretation of the agreement to handover the prison, arguing that the American military authorities have veto power over who is released. To date, Americans have not transferred all of the Afghan prisoners they are holding to government control. In addition, newly captured Afghan prisoners are being kept in American custody, a procedure the Afghans have disputed.


In the last year, 570 detainees have been released following acquittal in Afghan courts. Another 485 are in the process of being released, or have been released already, after a bilateral board of Afghans and Americans determined that there was not enough evidence to prosecute them. On Saturday, the government expects to release another 131 prisoners.


Some Western officials believe that the move by the Afghan government is designed to encourage reconciliation with insurgents to help put an end to the war. And by timing the move on the day before Mr. Karzai leaves for Washington to visit President Obama, it also highlights his independence as a leader.


“The main reason behind the release of these prisoners is to show the good intentions of the Afghan government,” said General Farooq. “We hope that their release will strengthen peace and stability in the country.”


Judging by the response of family and friends of the prisoners, the government’s move was well calculated.


“The release of these prisoners will definitely have a positive impact on people’s relationship with the government,” said Haji Sangeen, 48, a truck driver from Paktia who came to collect 12 of the detainees who hailed from his village. “It will bring the distance between the government and people to a minimum.”


The released prisoners, for their part, were pleased with the result, if not their detention.


Mohammed Naib, 15, from Logar Province, said he was arrested during a night raid at his madrassa when he was just 13.


“How would you feel if someone put you in jail for two years without even telling why they have arrested you,” he asked. “ I am happy that they have decided to release us, but my rights have been disregarded. Even if they give me the entire world they won’t be able to restore my dignity.”


After the ceremony concluded, the prisoners and their relatives went to a pink mosque nearby for lunch. They gathered in groups, chatting with one another and laughing, an air of jubilance filling the room. Some of the relatives started calling family members of the prisoners and handing the phones over to them to talk.


Abdullah, 32, also from Logar, said that he was arrested with his two brothers during a night raid about 20 months ago.


“They arrested me because I was the imam of our mosque, and they accused me of harboring insurgents,” he said. “But they couldn’t prove it.”


Like most other released detainees, Abdullah, who uses a single name, denied ever having aided the Taliban.


“I am not going to join the Taliban because I do not see a reason for that,” he said. “I will try to live a normal life, but I will not support the government or American efforts because I do not see a reason for that either.”


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“GameStick” Will Be the Size of a USB Memory Stick, Plug into Your TV






When the Ouya game console (scheduled to launch in April) made headlines last year, it was for three reasons. One, its size and price — the $ 99 box, which plugs into a TV, is the size of a Rubik’s cube. Two, its choice of operating system — it runs the same Android OS which powers smartphones and tablets. And three — its rise to fame on Kickstarter, where it shattered records and received millions of dollars in funding not from venture capitalists, but from gamers who wanted to see it made.


Now GameStick, “The Most Portable TV Games Console Ever Created,” is preparing to make a name for itself in exactly the same ways. Except that in some of them, it surpasses the Ouya.






Not even a set-top box


Up to this point, pretty much all home game consoles have been a box that sits on your shelf and plugs in to your TV. (Some PCs even do this these days.)


The GameStick, on the other hand, is about the size of a USB memory stick or a tube of lip balm. It plugs into a TV’s HDMI port, and connects to a wireless controller (or even a mouse and keyboard) via Bluetooth. It “works with any Bluetooth controller supporting HID,” and will come with its own small gamepad, which features twin analog sticks and a slot to put the GameStick itself inside when not in use.


Do we know if it works yet?


GameStick’s creators showed off pictures of a nonworking “Mark 1 Prototype Model,” and posted video of a “Reference Board” actually playing games while plugged into a television. This was a roughly USB-stick-sized circuit board, which lacked an outer case.


The reference unit had wires coming out of it, but the GameStick FAQ explains that on new, “MHL compliant TVs” it can draw power straight from the HDMI port, in much the same way that many USB devices are powered by a USB connection. A USB connector cable will be supplied with GameStick just in case, and “there will also be a power adapter.”


What about the games?


The GameStick reference unit was playing an Android game called Shadowgun, an over-the-shoulder third-person shooter which is considered technically demanding by Android device standards.


GameStick’s creators say “We have some great games lined up already,” and AFP Relax confirms that it has roughly the same internal specs as the Ouya, plus a lineup at launch of about a dozen games including several AAA Android titles.


How much will it cost, and when will it be out?


GameStick is available for preorder now from its Kickstarter page for $ 79. (The price includes the controller as well.) It has an estimated delivery date of April if the project is fully funded — and with 28 days to go, it had more than reached its $ 100,000 goal.


Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.


Linux/Open Source News Headlines – Yahoo! News





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Aww! Ava Totes Tennessee While Reese Witherspoon Snaps a Picture




Celebrity Baby Blog





01/04/2013 at 05:00 PM ET



Life’s a beach for Reese Witherspoon, who spend New Year’s in the sand with her family.


The actress was spotted in Hawaii with husband Jim Toth, their newborn son Tennessee James, 3 months, and her elder children Deacon, 9, and Ava, 13.


Witherspoon, who recently said she was “crawling back” to her pre-baby body, topped her ruched navy one-piece with a cover-up for the day in the sun.


Lending a helping hand was big sister Ava, whom Witherspoon calls “so awesome” with the baby. The teen carried her little brother around the beach while Witherspoon snapped photos of the pair.


Reese Witherspoon Snaps a Family Shot
FameFlynet



Reese Witherspoon Snaps a Family Shot
FameFlynet


Bonus: Witherspoon talks to Chelsea Handler about her son’s “redneck name”



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FDA proposes sweeping new food safety rules


WASHINGTON (AP) — The Food and Drug Administration on Friday proposed the most sweeping food safety rules in decades, requiring farmers and food companies to be more vigilant in the wake of deadly outbreaks in peanuts, cantaloupe and leafy greens.


The long-overdue regulations are aimed at reducing the estimated 3,000 deaths a year from foodborne illness. Just since last summer, outbreaks of listeria in cheese and salmonella in peanut butter, mangoes and cantaloupe have been linked to more than 400 illnesses and as many as seven deaths, according to the federal Centers for Disease Control and Prevention. The actual number of those sickened is likely much higher.


The FDA's proposed rules would require farmers to take new precautions against contamination, to include making sure workers' hands are washed, irrigation water is clean, and that animals stay out of fields. Food manufacturers will have to submit food safety plans to the government to show they are keeping their operations clean.


Many responsible food companies and farmers are already following the steps that the FDA would now require them to take. But officials say the requirements could have saved lives and prevented illnesses in several of the large-scale outbreaks that have hit the country in recent years.


In a 2011 outbreak of listeria in cantaloupe that claimed 33 lives, for example, FDA inspectors found pools of dirty water on the floor and old, dirty processing equipment at Jensen Farms in Colorado where the cantaloupes were grown. In a peanut butter outbreak this year linked to 42 salmonella illnesses, inspectors found samples of salmonella throughout Sunland Inc.'s peanut processing plant in New Mexico and multiple obvious safety problems, such as birds flying over uncovered trailers of peanuts and employees not washing their hands.


Under the new rules, companies would have to lay out plans for preventing those sorts of problems, monitor their own progress and explain to the FDA how they would correct them.


"The rules go very directly to preventing the types of outbreaks we have seen," said Michael Taylor, FDA's deputy commissioner for foods.


The FDA estimates the new rules could prevent almost 2 million illnesses annually, but it could be several years before the rules are actually preventing outbreaks. Taylor said it could take the agency another year to craft the rules after a four-month comment period, and farms would have at least two years to comply — meaning the farm rules are at least three years away from taking effect. Smaller farms would have even longer to comply.


The new rules, which come exactly two years to the day President Barack Obama's signed food safety legislation passed by Congress, were already delayed. The 2011 law required the agency to propose a first installment of the rules a year ago, but the Obama administration held them until after the election. Food safety advocates sued the administration to win their release.


The produce rule would mark the first time the FDA has had real authority to regulate food on farms. In an effort to stave off protests from farmers, the farm rules are tailored to apply only to certain fruits and vegetables that pose the greatest risk, like berries, melons, leafy greens and other foods that are usually eaten raw. A farm that produces green beans that will be canned and cooked, for example, would not be regulated.


Such flexibility, along with the growing realization that outbreaks are bad for business, has brought the produce industry and much of the rest of the food industry on board as Congress and FDA has worked to make food safer.


In a statement Friday, Pamela Bailey, president of the Grocery Manufacturers Association, which represents the country's biggest food companies, said the food safety law "can serve as a role model for what can be achieved when the private and public sectors work together to achieve a common goal."


The new rules could cost large farms $30,000 a year, according to the FDA. The agency did not break down the costs for individual processing plants, but said the rules could cost manufacturers up to $475 million annually.


FDA Commissioner Margaret Hamburg said the success of the rules will also depend on how much money Congress gives the chronically underfunded agency to put them in place. "Resources remain an ongoing concern," she said.


The farm and manufacturing rules are only one part of the food safety law. The bill also authorized more surprise inspections by the FDA and gave the agency additional powers to shut down food facilities. In addition, the law required stricter standards on imported foods. The agency said it will soon propose other overdue rules to ensure that importers verify overseas food is safe and to improve food safety audits overseas.


Food safety advocates frustrated over the last year as the rules stalled praised the proposed action.


"The new law should transform the FDA from an agency that tracks down outbreaks after the fact, to an agency focused on preventing food contamination in the first place," said Caroline Smith DeWaal of the Center for Science in the Public Interest.


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S&P 500 finishes at 5-year high on economic data

NEW YORK (Reuters) - The benchmark Standard & Poor's 500 index ended at a five-year high on Friday, lifted by reports showing employers kept up a steady pace of hiring workers and the vast services sector expanded at a brisk rate.


The gains on the S&P 500 pushed the index to its highest close since December 2007 and its biggest weekly gain since December 2011.


Most of the gains came early in the holiday-shortened week, including the largest one-day rise for the index in more than a year on Wednesday after politicians struck a deal to avert the "fiscal cliff."


The Dow Jones industrial average <.dji> gained 43.85 points, or 0.33 percent, to 13,435.21. The Standard & Poor's 500 Index <.spx> rose 7.10 points, or 0.49 percent, to 1,466.47. The Nasdaq Composite Index <.ixic> edged up 1.09 points, or 0.04 percent, to 3,101.66.


For the week, the S&P gained 4.6 percent, the Dow rose 3.8 percent and the Nasdaq jumped 4.8 percent to post their largest weekly percentage gains in more than a year.


The CBOE Volatility index <.vix>, a measure of investor anxiety, dropped for a fourth straight session, giving the index a weekly decline of nearly 40 percent, its biggest weekly fall ever. The close of 13.83 on the VIX marks its lowest level since August.


In Friday's economic reports, the Labor Department said non-farm payrolls grew by 155,000 jobs last month, slightly below November's level. Gains were distributed broadly throughout the economy, from manufacturing and construction to healthcare.


Also serving to boost equities was data from the Institute for Supply Management showing U.S. service sector activity expanding the most in 10 months.


With the S&P 500 index at a five-year closing high, analysts said any gains above the index's intraday high near 1,475 in September may be harder to come by.


"We are getting to a point where we need a strong catalyst, which could be earnings, it could be three months of good economic data, it could be a variety of things," said Adam Thurgood, managing director at HighTower Advisors in Las Vegas, Nevada.


"What is going on right now is this conflicting view of fundamentals look pretty good and improving, and then you've got these negative tail risks that could blow everything up," Thurgood said.


He referred to "a fiscal superstorm brewing" of issues still left unresolved in Washington, including tough federal budget cuts and the need to raise the government's debt ceiling all within a couple of months.


The rise in payrolls shown by the jobs data did not make a dent in the U.S. unemployment rate still at 7.8 percent.


A Reuters poll on Friday of economists at Wall Street's top financial institutions showed that most expect the Fed in 2013 to end the program with which it bought Treasury debt in an effort to stimulate the economy.


A drop in Apple Inc shares of 2.6 percent to $528.36 kept pressure on the Nasdaq.


Adding to concerns about Apple's ability to produce more innovative products, rival Samsung Electronics Co Ltd is expected to widen its lead over Apple in global smartphone sales this year with growth of 35 percent. Market researcher Strategy Analytics said Samsung had a broad product lineup.


Eli Lilly and Co was among the biggest boost's to the S&P, up 3.7 percent to $51.56 after the pharmaceuticals maker said it expects its 2013 earnings to increase to $3.75 to $3.90 per share, excluding items, from $3.30 to $3.40 per share in 2012.


Fellow drugmaker Johnson & Johnson rose 1.2 percent to $71.55 after Deutsche Bank upgraded the Dow component to a "Buy" from a "Hold" rating. The NYSEArca pharmaceutical index <.drg> climbed 0.6 percent.


Shares of Mosaic Co gained 3.3 percent to $58.62. Excluding items, the fertilizer producer's quarterly earnings beat analysts' expectations, according to Thomson Reuters I/B/E/S.


Volume was modest with about 6.07 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq, slightly below the 2012 daily average of 6.42 billion.


Advancing stocks outnumbered declining ones on the NYSE by 2,287 to 701, while on the Nasdaq, advancers beat decliners 1,599 to 866.


(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski and Kenneth Barry)



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Attacks in Iraq Kill at Least 32 Pilgrims





BAGHDAD — Attackers killed at least 32 pilgrims in Iraq on Thursday, the police said, in what appeared to be a spate of sectarian-motivated violence as the country continued to struggle with a political crisis in its fractured government.




At the culmination of one of Shiite Islam’s holiest rituals, at least 28 people were killed and 35 were wounded when a car bomb exploded in central Musayyib, a police official in Babil Province said. The apparent targets were pilgrims returning from the holy city of Karbala, where Shiites observe the end of the 40-day annual mourning period for the death of Imam Hussein ibn Ali, a grandson of the Prophet Muhammad.


In another attack in southeast Baghdad, a roadside bomb exploded as a minibus carrying Shiite pilgrims passed, killing 4 people and wounding 15, the police said.


The Shiite pilgrimage to commemorate the imam’s death, banned while Saddam Hussein ruled Iraq, has flourished since the American-led invasion overthrew him in 2003. Millions travel to Karbala, where the imam is buried, or to neighboring areas each year. Attacks on the pilgrims reflect some of the sectarian frictions that have plagued Iraq in recent years. At least 27 people were killed in 2010; about 52 in 2011; and 53 in 2012 in attacks related to the pilgrimage.


Tensions have mounted in recent weeks with demonstrations in Sunni-dominated areas against the Shiite-dominated government of Prime Minister Nuri Kamal al-Maliki. On Thursday, protesters in Ramadi continued to block some main trade routes leading to Syria and Jordan, and there were demonstrations in Salahuddin and Kirkuk as well.


Some progress may have been achieved this week on one of the demonstrators’ demands. A Justice Ministry official said Thursday that a committee instructed by Mr. Maliki to investigate the cases of female prisoners announced that 11 of them would be released, in addition to 2 teenagers. Other female prisoners will be transferred to locations in their home provinces.


It was not clear whether the steps would do much to calm tempers inflamed after a raid last month by security forces on the office and home of the Sunni finance minister, Rafie al-Issawi, and the arrest of 10 bodyguards, fueling accusations that Mr. Maliki was moving to monopolize power and sideline his political opponents before provincial elections scheduled for the spring.


Sadoun Obeid al-Shalan, the deputy chairman of the provincial council in Anbar, where most of the protests have been held, said that three of the released detainees were from that province. “The protesters have welcomed the initiative and demanded the release of the others,” he said.


Mr. Maliki, who appeared on state television on Thursday marching alongside some of the Shiite pilgrims, told demonstrators this week to stop their protests or face government action, saying they had been exploited by various groups for their own interests to the detriment of national unity. His critics, including the Shiite leader Moktada al-Sadr, have said that Mr. Maliki alone is responsible for provoking the unrest.


The speaker of Iraq’s Parliament, Osama al-Nujaifi, lashed out in a statement on Thursday against what he called Mr. Maliki’s threats, saying that “the people” were Iraq’s highest authority after the end of the former government.


Yasir Ghazi reported from Baghdad, and Christine Hauser from New York.



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Samsung and Apple are still the only winners in the mobile market






The duopoly of the U.S. mobile market intensified dramatically in 2012. Despite increased efforts from Motorola, LG (066570), HTC (2498), Nokia (NOK) and Microsoft (MSFT) to gain market share, Samsung (005930) and Apple (AAPL) continue to steal customers away from every other company. During a three-month period ending in November, comScore found that Samsung’s lead in the U.S. smartphone market increased 1.2 percentage points for a controlling 26.9% share. Apple’s smartphone market share grew from 17.1% to 18.5%, gaining 1.4 points following the launch of the iPhone 5. Rounding out the top-five were LG, Motorola and HTC, all of which saw their market shares decrease from August. LG fell 0.7 points to 17.5%, Motorola dropped 0.8 points to 10.4% and HTC’s market share decreased from 6.3% to 5.9%.


[More from BGR: Samsung confirms plan to begin inching away from Android]






[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]


The research firm found that 123.3 million people in the U.S. owned smartphones during the period, an increase of 6% since August. A majority of devices, 53.7%, were powered by Google’s (GOOG) Android operating system, which saw growth of 1.1 percentage points. Apple’s iOS market share increased 0.7 percentage points to 35%.


2012 was a transitional year for Research in Motion (RIMM) and Microsoft. Both companies spent most of the year preparing new operating systems. RIM will unveil its BlackBerry 10 operating system later this month and devices powered by Windows Phone 8 launched this past November. As a result, both companies saw lost share toward the end of 2012; RIM’s BlackBerry platform ranked third with a 7.3% share, down from 8.3% in August, and Microsoft’s operating system dropped 0.6 percentage points to a 3% share of the market.


This article was originally published by BGR


Wireless News Headlines – Yahoo! News





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Anne Hathaway Says Falling Fast for Adam Shulman Was 'Scary'















01/03/2013 at 05:45 PM EST







Adam Shulman and Anne Hathaway


Dave Allocca/Startraks


Anne Hathaway believes in love at first sight – in fact, she experienced it with her husband, Adam Shulman.

"I knew from the second I met him that he was the love of my life," the Les Miserables star says in an interview with Harper's Bazaar UK. "I also knew that I couldn't have met him at a worse time."

Hathaway says the timing was bad because she found it difficult to trust after a previous breakup.

"I took my trust out for a ridiculous joyride with him," Hathaway, 30, told the magazine for its February issue of falling for Shulman, 31. "It was scary. But as the days wore on it kept getting better and better. I found that the love I found for him made me more trusting of everyone, and the more I started to see who I had become."

Since marrying in Big Sur, Calif., in September, Hathaway says she's as happy as ever.

"He walks into a room, and I light up. I can't help it," says the Golden Globe nominee. "A few days into [filming Les Miserables], I said, 'I'm having too much fun, I just want to play with you and I need to be really sad right now.' "

Hathaway, who looks sexy in a strapless gown on the cover of Harper's Bazaar UK, says she never loved her good-girl image.

"I'm not Rihanna; I'm not cool," she says. "I was seen as this bizarre-world, good-girl cartoon that I in no way identified with – very vanilla, very sweet, very accessible and not interesting. I had no grit, no sex appeal."

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CDC: 1 in 24 admit nodding off while driving


NEW YORK (AP) — This could give you nightmares: 1 in 24 U.S. adults say they recently fell asleep while driving.


And health officials behind the study think the number is probably higher. That's because some people don't realize it when they nod off for a second or two behind the wheel.


"If I'm on the road, I'd be a little worried about the other drivers," said the study's lead author, Anne Wheaton of the Centers for Disease Control and Prevention.


In the CDC study released Thursday, about 4 percent of U.S. adults said they nodded off or fell asleep at least once while driving in the previous month. Some earlier studies reached a similar conclusion, but the CDC telephone survey of 147,000 adults was far larger. It was conducted in 19 states and the District of Columbia in 2009 and 2010.


CDC researchers found drowsy driving was more common in men, people ages 25 to 34, those who averaged less than six hours of sleep each night, and — for some unexplained reason — Texans.


Wheaton said it's possible the Texas survey sample included larger numbers of sleep-deprived young adults or apnea-suffering overweight people.


Most of the CDC findings are not surprising to those who study this problem.


"A lot of people are getting insufficient sleep," said Dr. Gregory Belenky, director of Washington State University's Sleep and Performance Research Center in Spokane.


The government estimates that about 3 percent of fatal traffic crashes involve drowsy drivers, but other estimates have put that number as high as 33 percent.


Warning signs of drowsy driving: Feeling very tired, not remembering the last mile or two, or drifting onto rumble strips on the side of the road. That signals a driver should get off the road and rest, Wheaton said.


Even a brief moment nodding off can be extremely dangerous, she noted. At 60 mph, a single second translates to speeding along for 88 feet — the length of two school buses.


To prevent drowsy driving, health officials recommend getting 7 to 9 hours of sleep each night, treating any sleep disorders and not drinking alcohol before getting behind the wheel.


__


Online:


CDC report: http://www.cdc.gov/mmwr


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Fed minutes short-circuit Wall Street rally

NEW YORK (Reuters) - U.S. stocks dipped on Thursday after signs the Federal Reserve has growing concern about its highly stimulative monetary policy, giving investors reason to pull back after a two-day rally.


The minutes from the Fed's December policy meeting, released on Thursday, showed increasing reticence about adding to the central bank's $2.9 trillion balance sheet, which it expanded sharply in response to the financial crisis and recession of 2007-2009.


Some policymakers thought asset buying should be slowed or stopped before the end of 2013 while others highlighted the need for further stimulus. The Fed's policy of easy credit has helped push the S&P 500 to a 13.4 percent gain in 2012. Ending that policy would remove an incentive for investors to purchase riskier assets like stocks.


"The surprise was the changes to duration and extent of that program in 2013, but given the tone in previous Fed meeting minutes, it should not have been an entire surprise," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon.


Despite the concerns about the effects of its asset purchases, the Fed look set to continue its open-ended stimulus program for now.


Stocks pushed the S&P 500 index 4.3 percent higher in the previous two sessions. On Thursday investors turned their focus to coming battles in Congress, including the likelihood of bitter fights over budget cuts and raising the federal debt ceiling.


"We were definitely technically extended and ripe for a little bit of a consolidation and today is very orderly - traders and investors are still trying to digest the language and the details from the 2012 taxpayer act," Dickson said.


The Dow Jones industrial average <.dji> dropped 21.19 points, or 0.16 percent, to 13,391.36. The Standard & Poor's 500 Index <.spx> shed 3.05 points, or 0.21 percent, to 1,459.37. The Nasdaq Composite Index <.ixic> lost 11.70 points, or 0.38 percent, to 3,100.57.


Economic data showed U.S. private-sector employers shrugged off a looming budget crisis and stepped up hiring in December, offering further evidence of underlying strength in the economy as 2012 ended.


The government's broader monthly payrolls report, due on Friday, is expected to show the economy created 150,000 jobs compared with 146,000 in November, according to a Reuters poll. The U.S. unemployment rate is seen holding steady at 7.7 percent.


Retailers advanced after several major companies in the sector beat expectations of modest sales increases in December, with the S&P retail index <.spxrt> up 0.4 percent.


Shares in Costco Wholesale Corp rose 1 percent to $102.49 after the company reported a better-than-expected 9 percent rise in December sales at stores open at least a year.


Gap Inc stock climbed 2.3 percent to $32.09 following news that the retailer will buy women's fashion boutique Intermix Inc, the Wall Street Journal reported.


Family Dollar Stores Inc stumbled 13 percent to $55.74 on the company's report of lower-than-expected quarterly profit.


Volume was relatively strong, with about 6.68 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq, slightly above the 2012 daily average of 6.42 billion.


Advancing stocks outnumbered declining ones on the NYSE by 1,692 to 1,321, while on the Nasdaq, decliners beat advancers 1,287 to 1,187.


(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)



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