RIM shares jump in Toronto, rebound from sharp decline

 Shares of Research In Motion Ltd jumped nearly 10 percent on the Toronto Stock Exchange on Thursday, following similar gains in New York on Wednesday, in a rebound from last week's sharp decline.
Last Friday, the volatile stock plunged more than 20 percent after the company said on an earnings conference call that it was rolling out a new fee structure for its services segment, which some investors fear could pressure the high-margin business.
"It got hit so hard after the conference call," said Ed Snyder, an analyst with Charter Equity Research. "People are still fairly optimistic about (BlackBerry 10) coming out in January, so (the rebound is) really just a value play."
The new fee structure overshadowed stronger-than-expected quarterly results.
RIM shares were up 9.7 percent to C$11.42 in midday trade on the Toronto Stock Exchange. The company's Nasdaq-listed stock was down 2 percent to $11.60 after big gains on Wednesday, when Canadian equity markets were closed for Boxing Day.
Through the autumn of 2012, RIM rallied as investors grew optimistic about prospects for its new make-or-break BlackBerry 10 devices, to be formally unveiled January 30. On Thursday, the shares were still up more than 80 percent from the year's low, touched in September.
The Wednesday and Thursday gains also came after several websites posted photos of what they said could be the first BlackBerry 10 phone with a physical keyboard.
Evercore Partners analyst Mark McKechnie said the photos boosted RIM's stock, which he said was depressed from last week's selloff, on a quiet trading day.
"There certainly are folks that believe in the new product cycle," he said. "The whole Wall Street community's been trying to handicap how strong that product cycle will be for RIM."
RIM has said it plans to roll out touchscreen-only devices first, a few weeks before it releases a smartphone with the QWERTY keyboard many longtime BlackBerry users rave about. But some analysts believe devices with hard keyboards will not hit the market until spring.
Management has touted BlackBerry 10's new on-screen keyboard, but some see the company's reputation for building solid, usable physical keyboards as an important competitive advantage as RIM fights for market share against Apple Inc and Samsung Electronics .
McKechnie said volatility is not unusual ahead of big smartphone launches.
"There's so much scale involved in this industry, one way or the other. A successful product versus a failure is going to really change the earnings power of a company," he said.

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A surprisingly good vintage as market logs gains

NEW YORK (AP) — If you'd told investors what was going to happen in 2012 — U.S. economic growth at stall speed, an intensifying European debt crisis, a slowdown in China, fiscal deadlock in Washington, decelerating corporate earnings growth — and asked how the stock market would perform, few would have predicted a good year.
But that's just what they got.
The Dow Jones industrial average, the Standard & Poor's 500 and the Nasdaq composite index all ended the year substantially higher, despite losing ground in the final days of year as concerns about the looming "fiscal cliff" mounted.
The Dow gained 7 percent for the year, its fourth consecutive annual advance, having started the year at 12,217. The S&P 500, which started the year at 1,257, is up 13 percent, beating the 7.8 percent average annual gain of the past 20 years. The Nasdaq also logged a better-than-average gain, 16 percent.
Including dividends, the total return on the S&P 500 index was even better: 16 percent.
Financial companies led the gains among S&P 500 stocks, advancing 26 percent, as banks continued their restructuring efforts after the recession. Bank of America more than doubled, gaining $6.05 to $11.61 and Citigroup advanced $13.25, or 50 percent, to $39.56. Utilities, the best-performing industry group last year, was the only sector of 10 industry groups in the index to decline, dropping 2.9 percent.
"There's been a lot thrown at this market, and it's proven to be very resilient," said Gary Flam, a portfolio manager at Bel Air Investment Advisors in California. "Here we are at the end of the year, and it's still relatively strong."
Stocks started the year on a tear, with optimism about an improving job market and a broader economic recovery providing the backdrop to the S&P 500's best first-quarter rally in 14 years.
The index advanced 12 percent by the end of March, closing the quarter at 1,408, its highest in almost four years, with financial companies and technology firms leading the charge. The Dow ended the first quarter at 13,212, logging an 8 percent gain.
Apple was one of the star performers of the first quarter and was probably the year's most talked-about company.
The popularity of the iPhone and iPad led to staggering sales growth that helped push its stock up 48 percent to almost $600 at the end of March. Apple also announced a dividend and overtook Exxon Mobil as the U.S.'s most valuable company.
At the start of the second quarter, the intensifying European debt crisis and concerns about the impact that it would have on global economic growth prompted a sell-off.
By the start of June, U.S. stocks had given up the year's gains. Borrowing costs for Spain surged and investors fretted over the outcome of Greek elections that had the potential to pull the euro currency bloc apart.
The outlook for growth in China, the world's second-largest economy, also began to weigh on investors' minds. Economic growth there slowed to 8.1 percent in the first quarter as export demand waned, and investors worried that it would keep falling.
The Dow fell as low as 12,101 June 4. The S&P dropped to 1,278 June 1.
The second quarter was also marred by Facebook's initial public offering.
The stock sale was one of the most keenly anticipated initial public offerings in years, but investors didn't "like" the $16 billion market debut. The social network priced its IPO at $38 per share, and the stock started to fall soon after the first day of trading on concern about the company's mobile strategy.
Facebook closed as low as $17.73 on Sept. 4 before recovering some of the ground it lost to close the year at $26.62.
Company earnings reports were also starting to make uncomfortable reading for investors. Earnings growth for S&P 500 companies fell as low as 0.8 percent in the second quarter, according to S&P Capital IQ data.
The stock market only recovered its poise after the European Union put together loans to bail out Spain's banks on June 10 and the head of the European Central Bank, Mario Draghi, pledged to do "whatever it takes" to save the euro.
Speculation that the Federal Reserve was set to provide the economy with more stimulus to prevent it from slipping back into recession also bolstered stocks.
The rally even survived a blip when a software glitch at trading firm Knight Capital threw stock prices into chaos Aug. 1.
The firm said the problem was triggered by new trading software it installed. Erroneous orders were sent to 140 stocks listed on the New York Stock Exchange, causing sudden price swings and surging trading volume.
Apple launched the iPhone 5, the latest version of its smartphone, in September, and the company's stock climbed to a record close of $702.10 on Sept. 19. That gave Apple a market value of $658 billion, and many analysts predicted more gains lay ahead.
By the time Fed Chairman Ben Bernanke announced Sept. 13 that the U.S. central bank would start a third round of its bond-purchase program, which is intended to push longer term interest rates lower and encourage borrowing and investment, the S&P 500 had surged 14 percent from its June 1 low. A day later, the index peaked at five-year high of 1,466. The Dow Jones reached its peak for the year of 13,610, Oct. 5.
As is often the case on Wall Street, investors "bought the rumor and sold the fact," and quickly turned their attention to the challenges that lay ahead.
Analysts had also been cutting their outlook for growth in the final quarter of the year. At the start of the second quarter, estimated earnings growth for the period was 15.7 percent. That forecast had fallen to 3.4 percent by Dec. 27.
"One of the blessings that supported the stock market's moves in prior years was earnings growth," said Lawrence Creatura, a portfolio manager at Federated Investors. "That's true this year, but at a decelerating rate. It's not gone unnoticed that earnings growth is slowing, and many forecasts now include a full stall."
Apple's halo also began to slip in the final three months of the year. Its iPad Mini tablet, launched Nov. 2, met with lukewarm reviews, there were hints of unrest among its executive ranks. Investors began to fret that the intensifying competition in the smartphone market would crimp Apple's profits. The stock tumbled, and despite rallying in recent days is still down 27 percent from its September peak.
The year's final twist came in Washington.
Stocks wavered ahead of a presidential election that at times seemed too close to call, and while President Barack Obama ultimately reclaimed the White House by a comfortable margin, the Republicans retained control of the House.
The divided government set the stage for a tense end to the year as Democrats and Republicans sought to thrash out a budget plan that would avoid the U.S. falling off the "fiscal cliff," a series of tax hikes and government spending cuts that economists say would push the economy back into recession.
Initially, markets fell as much as 5 percent in the 10 days after the elections as investors worried that a divided government would not be able to agree on a budget plan to cut the U.S. deficit.
While the S&P 500 managed to recoup those losses by December on optimism that a deal would be reached, some investors are still urging caution. Any agreement will still be "ill-tasting medicine" to the economy, as it will almost certainly involve both spending cuts and tax hikes, says Joe Costigan, director of equity research at Bryn Mawr Trust Company.
"The question is, how much will the drag from the government be offset by business and personal spending," says Costigan. "The market has reasonable expectations for growth priced in, so I don't think we're going to see a big run-up."

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Stocks surge after last-minute budget deal reached

Stocks are opening sharply higher on Wall Street after lawmakers averted sweeping cuts in government spending and with a last-minute budget deal.
The Dow Jones industrial average jumped 232 points to 13,336 shortly after the opening bell Tuesday, the first trading day of 2013. That's a gain of 1.8 percent.
The Standard & Poor's 500 index shot up 29 points, or 2 percent, to 1,455. The Nasdaq composite rose 82 points, or 2.7 percent, to 3,102.
Investors have been keeping a close eye on the budget stalemate in Washington and were relieved that a deal was reached. However the late-night budget agreement leaves many issues unresolved and it remained unclear how long the market rally would last. Next up is a fight over the government's borrowing limit.

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'Fiscal cliff' deal sends markets shooting higher

 The "fiscal cliff" compromise, for all its chaos and controversy, was enough to send the stock market shooting higher Wednesday, the first trading day of the new year.
All the major U.S. stock indexes swelled by at least 2 percent. For the Dow Jones industrial average, up 263 points soon after the market opened, it was the biggest surge in six months.
Stocks around the world also leapt higher. The major indexes in Britain, France and Germany rose more than 2 percent, and Greece and Spain were up by more than 3 percent. Stocks in Asia also surged.
In the U.S., the rally was extraordinarily broad. For every stock that fell on the New York Stock Exchange, roughly 18 rose.
The Dow was up 263 at 13,369 after the first 45 minutes of trading. The S&P 500 was up 30 to 1,456. The Nasdaq composite was up 82 to 3,102.
The yield on the 10-year Treasury note rose sharply, to 1.84 percent from 1.75 percent, as investors dumped safe harbor investments like U.S. government bonds and plowed money into stocks. The dollar fell against the euro and prices for oil and other commodities rose.
Late Tuesday night the U.S. House of Representatives passed a budget bill meant to ward off the "fiscal cliff." Many House Republicans balked at voting for the bill because they wanted a deal that did more to cut government spending.
Because lawmakers didn't have a budget compromise in place when the new year started on Tuesday, the U.S. technically did go over the "fiscal cliff," meaning tax increases and government spending cuts automatically kicked in that day. Some analysts worried that the combination would kick the U.S. back into recession. But the bill passed Tuesday night by the House will prevent the "cliff" from taking hold. It already has Senate approval, and now awaits a signature from President Barack Obama.
Some investors, even as they watched the stock market leap higher, cautioned that the euphoria could be short-lived. The deal leaves a host of questions unresolved. Notably, the core issue of the "fiscal cliff" standoff in Washington has been the country's long-term plan for trimming its debt, and the deal doesn't include any significant deficit-cutting agreement.
Next up is what could turn into a vicious fight over the debt ceiling, or how much the government is allowed to borrow. And the U.S. could still get its debt rating downgraded by one of the ratings agencies. The stock market plunged in August 2011 after Standard & Poor's cut the U.S. government's credit rating.
Some investors also noted that the "fiscal cliff," which has dominated headlines for weeks, is only masking serious problems punctuating the world economy, including the still-unsolved European debt crisis and middling growth for the U.S. economy. Wednesday, the president of debt-wracked Cyprus said he'd refuse to sell government-owned companies, a provision that the country's bailout deal says it must at least consider.
Among stocks making big moves, Zipcar shot up 48 percent, or $3.96, to $12.20 after the company said it had agreed to be acquired by Avis. Avis rose $1.16 to $20.98. Zipcar has a business model that's popular with drivers, allowing them to rent cars for just a few hours at a time. The company has struggled to win over investors, however, and its stock plunged nearly 39 percent in 2012. Avis rose 84 percent in the same period.

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Nigerian stocks continue gains, up 1.5 pct on banks

LAGOS (Reuters) - Nigerian stocks rose 1.5 percent on Wednesday in thin trade, led by heavy weight banks, adding to optimism that a surge in share prices last year will continue into 2013.
The index of Nigeria's top-10 banks on Wednesday gained 3.5 percent to help lift the all-share index up 424 points to 28,502 points by 1404 GMT.
Sub-Saharan Africa's second biggest index crossed a 28,000 point psychological level on Monday, hitting a 32-month high to close as the second best performing African stock market after Uganda, rising 35.5 percent in 2012.
Nigerian stocks recovered last year after falling 16 percent in 2011 but the market is still less than half the value it was prior to the 2008 collapse, which wiped off 60 percent of stock values and coincided with a banking crisis.
The index rose 70 percent in 2007.
Skye Bank rose the maximum 10 percent allowed for stock eligible for market-making on Wednesday, while Diamond Bank and FCMB each rose over 9 percent.

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UN says more than 60,000 dead in Syrian civil war

The United Nations gave a grim new count Wednesday of the human cost of Syria's civil war, saying the death toll has exceeded 60,000 in 21 months — far higher than recent estimates by anti-regime activists.
The day's events illustrated the escalating violence that has made recent months the deadliest of the conflict: As rebels pressed a strategy of attacking airports and pushing the fight closer to President Bashar Assad's stronghold in Damascus, the government responded with deadly airstrikes on restive areas around the capital.
A missile from a fighter jet hit a gas station in the suburb of Mleiha, killing or wounding dozens of people who were trapped in burning piles of debris, activists said.
Gruesome online video showed incinerated victims — one still sitting astride a motorcycle — or bodies torn apart.
"He's burning! The guy is burning!" an off-camera voice screamed in one video over a flaming corpse.
It was unclear if the government had a military strategy for attacking the gas station. At least one of the wounded wore a military-style vest often used by rebel fighters. Human rights groups and anti-regime activists say Assad's forces often make little effort to avoid civilian casualties when bombing rebel areas.
Syria's conflict began in March 2011 with protests calling for political change but has evolved into a full-scale civil war.
As the rebels have grown more organized and effective, seizing territory in the north and establishing footholds around Damascus, the government has stepped up its use of airpower, launching daily airstrikes. The escalating violence has sent the death toll soaring.
The U.N.'s new count of more than 60,000 deaths since the start of the conflict is a third higher than recent estimates by anti-regime activists. One group, the Britain-based Syrian Observatory for Human Rights, says more than 45,000 people have been killed. Other groups have given similar tolls.
"The number of casualties is much higher than we expected, and is truly shocking," U.N. High Commissioner for Human Rights Navi Pillay said in a statement.
She criticized the government for inflaming the conflict by cracking down on peaceful protests and said rebel groups, too, have killed unjustifiably. Acts by both sides could be considered war crimes, she said.
She also faulted world powers for not finding a way to stop the violence.
"The failure of the international community, in particular the Security Council, to take concrete actions to stop the bloodletting shames us all," Pillay said. "Collectively, we have fiddled at the edges while Syria burns."
The U.S. and many European and Arab nations have demanded that Assad step down, while Russia, China and Iran have criticized calls for regime change.
The new death toll was compiled by independent experts commissioned by the U.N. human rights office who compared 147,349 killings reported by seven different sources, including the Syrian government.
After removing duplicates, they had a list of 59,648 individuals killed between the start of the uprising on March 15, 2011, and Nov. 30, 2012. In each case, the victim's first and last name and the date and location of death were known. Killings in December pushed the number past 60,000, she said.
The total death toll is likely to be even higher because incomplete reports were excluded, and some killing may not have been documented at all.
"There are many names not on the list for people who were quietly shot in the woods," Pillay's spokesman Rupert Colville told The Associated Press.
The data did not distinguish among soldiers, rebels or civilians.
It indicated that the pace of killing has accelerated. Monthly death tolls in summer 2011 were around 1,000. A year later, they had reached about 5,000 per month.
Most of the killings were in the province of Homs, followed by the Damascus suburbs, Idlib, Aleppo, Daraa and Hama. At least three-fourths of the victims were male.
Pillay warned that thousands more could die or be injured, and she said the danger could continue even after the war.
"We must not compound the existing disaster by failing to prepare for the inevitable — and very dangerous — instability that will occur when the conflict ends," she said.
The U.N. refugee agency said about 84,000 people fled Syria in December alone, bringing the total number of refugees to about a half-million. Many more are displaced inside Syria.
While no one expects the war to end soon, international sanctions and rebel advances are eroding Assad's power. Rebels recently have targeted two pillars of his strength: his control of the skies and his grip on Damascus.
Rebels in northern Syria attacked a government helicopter base near the village of Taftanaz in Idlib province, activists said. Videos posted online showed them blasting targets inside the airport with heavy machine guns mounted on trucks.
All videos appeared genuine and corresponded with other AP reporting on the events.
In recent weeks, rebels have attacked three other airports in north Syria. They clashed Wednesday with forces inside the Mannagh military airport near the Turkish border as well as near the Aleppo international airport and adjacent Nerab military airport, halting air traffic there for the second straight day.
The fall of those airports to the rebels would embarrass the regime but not fully stop the airstrikes by government jets, many of which come from bases farther south.
In another blow to the regime and to Syria's economy, a company based in the Philippines that handled shipping containers at Syria's largest port said it was canceling its contract, citing an "untenable, hostile and dangerous business environment."
The Manila-based International Container Terminal Services Inc. said the amount of port traffic had gone down, hurting business, while conditions in Syria grew more dangerous.
The company's departure will significantly limit cargo services at the Tartus port.
Also, Wednesday, the family of American journalist James Foley revealed that he has been missing in Syria for more than a month. Foley was providing video for Agence France-Press when he was abducted Nov. 22 by unknown gunmen, his family said in a statement.
"His captors, whoever they may be, must release him immediately," said AFP chairman Emmanuel Hoog.
Covering Syria has been a challenge for journalists. The government rarely gives visas to journalists, prompting some to sneak in with the rebels, often at great danger.

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Nominee to be Libyan foreign minister turns down the job

TRIPOLI (Reuters) - The man proposed as Libya's foreign minister has rejected the post despite being cleared by an Integrity Commission which was asked to examine his ties to deposed leader Muammar Gaddafi.
Ali Aujali, Libya's former ambassador to the United States was among eight of the 27 ministers nominated by Prime Minister Ali Zeidan who were referred to the commission, which studies the backgrounds of public officials, after protests outside congress over the makeup of his cabinet.
Congress elected Zeidan prime minister in October after his predecessor lost a confidence vote over his choice of ministers - highlighting the fractious politics in a country previously run with an eccentric system of personal rule.
The eight ministers were invited to appeal their cases, and Aujali won his, according to a statement on the Facebook page of the Integrity Commission.
But in a letter of resignation to the head of parliament obtained by Reuters on Wednesday, Aujali simply said he did not want to take up the position of foreign minister even though he was now cleared to do so.
"It is an honor to be appointed to this position, but for objective and personal reasons, I have informed the prime minister that I must turn down this position at this time," the letter, dated December 30, read.
He did not elaborate and was not available for comment.
Aujali was Libya's ambassador to the United States during the war that toppled Gaddafi in August 2011. A telegram presented to the commission as part of his appeal showed he had defected on March 22, a month after the uprising began.

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