Asian shares edge higher, yen falls on BOJ report

TOKYO (Reuters) - Asian shares edged higher on Monday, with investors still picking up shares battered by last week's steep plunge, while the yen fell to fresh lows on news a reflationary advocate could head the Bank of Japan next month.

The news Japan's government is likely to nominate Asian Development Bank President Haruhiko Kuroda, an advocate of aggressive monetary easing, as its next central bank governor, is set to be a major factor in financial markets this week.

Markets are pondering whether Italy's weekend elections will produce a stable government, and the implications of that for euro zone cohesion, while Moody's credit downgrade on Britain will play on confidence in the pound and government bonds.

Investors also await testimony on Tuesday from Fed Chairman Ben Bernanke for further clues of when the Fed may slow or stop buying bonds. Financial markets were rattled last week after minutes of the Fed's January meeting suggested some Fed officials were mulling scaling back its strong monetary stimulus earlier than expected.

The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> was up 0.1 percent, pulled higher by Australian shares <.axjo> which gained 0.6 percent on reassuring comments from U.S. Federal Reserve officials on the bank's current stimulus program, which has helped underpin risk sentiment globally.

South Korean shares <.ks11> opened up 0.2 percent, with the nation's new leader, who has shown willingness to talk down the won, being sworn in on Monday.

Tokyo's Nikkei stock average <.n225> opened 1.6 percent higher. <.t/>

Early on Monday, the yen touched its lowest since May 2010 of 94.61 yen against the dollar, while the euro rose to a high of 124.83 yen, still off its 34-month peak of 127.71 set early this month.

The Nikkei newspaper reported the Japanese government is likely to nominate Haruhiko Kuroda and Kikuo Iwata, both vocal advocates of aggressive monetary expansion, as BOJ governor and deputy governor.

The dollar fell sharply to below 93 yen last week on media reports that Toshiro Muto, a former financial bureaucrat perceived as less willing to take unconventional steps, was the frontrunner candidate for the top BOJ job.

"The dollar's move this morning is merely a rebound from disappointment on Muto last week. I don't think this topic will be enough to hoist the dollar above 95 yen," said Hiroshi Maeba, head of FX trading Japan at UBS in Tokyo. "No matter who is elected at the BOJ, it will not affect the longer-term trend of a weak yen," he said.

Speculation over the BOJ has been a key factor driving the yen lower recently due to anticipation for strong reflationary measures, but other fundamental factors such as Japan's deteriorating trade balances and signs of firmer U.S. growth also supported a weakening yen trend.

Abe told Americans on Friday "I am back and so is Japan" and vowed to get the world's third biggest economy growing again.

Investors remained cautious before the full official results of Italy's elections come out on Tuesday, worried a potential political stalemate could impede Rome's progress on fiscal reforms.

The euro was up 0.1 percent to $1.3192, off Friday's six-week low of $1.31445.

Sterling fell to a 31-month low of $1.5073 early on Monday and a record low against the New Zealand dollar at NZ$1.8025 following Friday's one-notch downgrade of Britain's prized triple-A sovereign rating by Moody's.

Investors will also seek signs of recovery from the flash estimate of China's manufacturing PMI from HSBC/Markit due later in the session.

Wall Street ended higher on Friday, boosted strong earnings from Dow component Hewlett-Packard , but the benchmark Standard & Poor's Index <.spx> posted its first weekly decline of the year. European shares rose on Friday after data showed German business morale surged at its fastest pace in over two years in February.

Hedge funds and other big speculators cut their bullish bets on U.S. commodities by nearly $13 billion, the most in about 10 months, in the week to February 19 to $69 billion, just before oil and metals prices tumbled last week on rumors a commodities fund was dumping positions, trade data showed on Friday.

U.S. crude was up 0.1 percent to $93.26 a barrel.

(Editing by Eric Meijer)

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Kerry’s Meeting With Syrian Opposition at Risk

Pool photo by Jacquelyn Martin

Secretary of State John Kerry spoke to reporters on the way to London on Sunday. Mr. Kerry has said that he has new ideas on how to force President Bashar al-Assad from power in Syria.

Mr. Kerry and foreign ministers from Europe and the Middle East are scheduled to meet in Rome on Thursday with opponents of President Bashar al-Assad of Syria, including Sheik Ahmad Moaz al-Khatib, who leads the opposition. But they are threatening to boycott the conference to protest what they see as fainthearted international support.

To try to rescue the meeting, Robert S. Ford, the American ambassador to Syria and chief envoy to the opposition, was sent to Cairo on Sunday to implore opposition leaders to attend the session in Rome.

“The Syrian opposition leadership is under severe pressure now from its membership, from the Syrian people, to get more support from the international community,” said a senior administration official who was traveling on Mr. Kerry’s plane. “And in that context, there’s quite a bit of internal discussion about the value of going in international conferences.”

The issue upset the first day of a carefully choreographed trip that is intended to introduce Mr. Kerry as the chief American envoy and to give a lift to the diplomatic stalemate on Syria. Mr. Kerry, who took office this month, is traveling to Britain, Germany, France, Italy, Turkey, Egypt, Saudi Arabia, the United Arab Emirates and Qatar over 11 days.

Even before his trip was formally announced, Mr. Kerry raised expectations by saying he had new ideas on how to change Mr. Assad’s calculations that he could remain in power.

Mr. Kerry has not publicly explained the proposals, but they appear to include marshaling support from Russia, which has been providing arms and financial help to Mr. Assad. Toward that end, Mr. Kerry plans to meet in Berlin on Wednesday with Sergey V. Lavrov, Russia’s foreign minister.

The meeting with the Syrian opposition is to be hosted by Italy. Last week, the European Union agreed to extend its embargo on weapons shipments to Syria for another three months, a move that precludes European arms shipments to the opposition.

But the European Union did agree to a British proposal that nonlethal assistance be expanded. As a result, body armor, night-vision goggles, armored vehicles and other equipment can be sent to armed opposition groups in Syria, an American official said.

So far, the Obama administration has not gone that far in its support. While the United States provides nonlethal assistance like computers and radios to the opposition, it has not been willing to provide nonlethal aid to armed factions within Syria, an approach that experts say has limited its influence with these groups.

State Department officials traveling with Mr. Kerry declined to discuss whether the United States would soon be prepared to take that step.

President Obama rebuffed a proposal last year from the State Department, the Pentagon and the C.I.A. that the United States arm and train a cadre of opposition fighters.

With the violence escalating, Aleppo under attack by Scud missiles and members of a quarrelsome Syrian opposition challenging the value of the Rome meeting — which was supposed to be a highlight of Mr. Kerry’s trip — the State Department issued a statement on Saturday evening that condemned the rocket attacks “in the strongest possible terms” and prodded the Syrian opposition to attend the session.

The statement continued, “We look forward to meeting soon with the leadership of the legitimate representative of the Syrian people, the Syrian Opposition Coalition, to discuss how the United States and other friends of the Syrian people can do more to help the Syrian people achieve the political transition that they demand and that they deserve.”

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Channing Tatum & Jenna Dewan-Tatum Show Off Baby Bump at Oscars

By Maggie Coughlan

02/24/2013 at 06:45 PM EST

Channing Tatum and Jenna Dewan-Tatum

Jason Merritt/Getty

Who is your bump wearing?

Parents-to-be Channing Tatum and Jenna Dewan-Tatum brought a very special guest to Sunday night's 85th Annual Academy Awards – wearing a black lace, backless dress, Dewan-Tatum, 32, showed off her new curves, while husband Tatum revealed where their baby will be born.

"I'm walking the carpet, trying to keep it together tonight but we're good!" a radiant Dewan-Tatum told Ryan Seacrest on the red carpet Sunday night.

When asked by Seacrest if the couple had any plans to slow down for some "family time," Tatum, 32, replied: "We're gonna actually have the baby in London while I'm shooting so there will be no downtime whatsoever after that."

Tatum – who was named PEOPLE's 2012 Sexiest Man Alive – recently told PEOPLE that he's doing his homework before the baby arrives.

"I have never changed a diaper before, so I may need some help learning," the actor said at the time. "I don't have friends who have kids, so it's going to be an interesting experience to learn how to change a diaper."

The couple's first child is due this summer.

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FDA approves new targeted breast cancer drug

WASHINGTON (AP) — The Food and Drug Administration has approved a first-of-a-kind breast cancer medication that targets tumor cells while sparing healthy ones.

The drug Kadcyla from Roche combines the established drug Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell, delivering a potent dose of anti-tumor poison.

Cancer researchers say the drug is an important step forward because it delivers more medication while reducing the unpleasant side effects of chemotherapy.

"This antibody goes seeking out the tumor cells, gets internalized and then explodes them from within. So it's very kind and gentle on the patients — there's no hair loss, no nausea, no vomiting," said Dr. Melody Cobleigh of Rush University Medical Center. "It's a revolutionary way of treating cancer."

Cobleigh helped conduct the key studies of the drug at the Chicago facility.

The FDA approved the new treatment for about 20 percent of breast cancer patients with a form of the disease that is typically more aggressive and less responsive to hormone therapy. These patients have tumors that overproduce a protein known as HER-2. Breast cancer is the second most deadly form of cancer in U.S. women, and is expected to kill more than 39,000 Americans this year, according to the National Cancer Institute.

The approval will help Roche's Genentech unit build on the blockbuster success of Herceptin, which has long dominated the breast cancer marketplace. The drug had sales of roughly $6 billion last year.

Genentech said Friday that Kadcyla will cost $9,800 per month, compared to $4,500 per month for regular Herceptin. The company estimates a full course of Kadcyla, about nine months of medicine, will cost $94,000.

FDA scientists said they approved the drug based on company studies showing Kadcyla delayed the progression of breast cancer by several months. Researchers reported last year that patients treated with the drug lived 9.6 months before death or the spread of their disease, compared with a little more than six months for patients treated with two other standard drugs, Tykerb and Xeloda.

Overall, patients taking Kadcyla lived about 2.6 years, compared with 2 years for patients taking the other drugs.

FDA specifically approved the drug for patients with advanced breast cancer who have already been treated with Herceptin and taxane, a widely used chemotherapy drug. Doctors are not required to follow FDA prescribing guidelines, and cancer researchers say the drug could have great potential in patients with earlier forms of breast cancer

Kadcyla will carry a boxed warning, the most severe type, alerting doctors and patients that the drug can cause liver toxicity, heart problems and potentially death. The drug can also cause severe birth defects and should not be used by pregnant women.

Kadcyla was developed by South San Francisco-based Genentech using drug-binding technology licensed from Waltham, Mass.-based ImmunoGen. The company developed the chemical that keeps the drug cocktail together and is scheduled to receive a $10.5 million payment from Genentech on the FDA decision. The company will also receive additional royalties on the drug's sales.

Shares of ImmunoGen Inc. rose 2 cents to $14.32 in afternoon trading. The stock has ttraded in a 52-wek range of $10.85 to $18.10.

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Investors face another Washington deadline

NEW YORK (Reuters) - Investors face another Washington-imposed deadline on government spending cuts next week, but it's not generating the same level of fear as two months ago when the "fiscal cliff" loomed large.

Investors in sectors most likely to be affected by the cuts, like defense, seem untroubled that the budget talks could send stocks tumbling.

Talks on the U.S. budget crisis began again this week leading up to the March 1 deadline for the so-called sequestration when $85 billion in automatic federal spending cuts are scheduled to take effect.

"It's at this point a political hot button in Washington but a very low level investor concern," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. The fight pits President Barack Obama and fellow Democrats against congressional Republicans.

Stocks rallied in early January after a compromise temporarily avoided the fiscal cliff, and the Standard & Poor's 500 index <.spx> has risen 6.3 percent since the start of the year.

But the benchmark index lost steam this week, posting its first week of losses since the start of the year. Minutes on Wednesday from the last Federal Reserve meeting, which suggested the central bank may slow or stop its stimulus policy sooner than expected, provided the catalyst.

National elections in Italy on Sunday and Monday could also add to investor concern. Most investors expect a government headed by Pier Luigi Bersani to win and continue with reforms to tackle Italy's debt problems. However, a resurgence by former leader Silvio Berlusconi has raised doubts.

"Europe has been in the last six months less of a topic for the stock market, but the problems haven't gone away. This may bring back investor attention to that," said Kim Forrest, senior equity research analyst at Fort Pitt Capital Group in Pittsburgh.

OPTIONS BULLS TARGET GAINS

The spending cuts, if they go ahead, could hit the defense industry particularly hard.

Yet in the options market, bulls were targeting gains in Lockheed Martin Corp , the Pentagon's biggest supplier.

Calls on the stock far outpaced puts, suggesting that many investors anticipate the stock to move higher. Overall options volume on the stock was 2.8 times the daily average with 17,000 calls and 3,360 puts traded, according to options analytics firm Trade Alert.

"The upside call buying in Lockheed solidifies the idea that option investors are not pricing in a lot of downside risk in most defense stocks from the likely impact of sequestration," said Jared Woodard, a founder of research and advisory firm condoroptions.com in Forest, Virginia.

The stock ended up 0.6 percent at $88.12 on Friday.

If lawmakers fail to reach an agreement on reducing the U.S. budget deficit in the next few days, a sequester would include significant cuts in defense spending. Companies such as General Dynamics Corp and Smith & Wesson Holding Corp could be affected.

General Dynamics Corp shares rose 1.2 percent to $67.32 and Smith & Wesson added 4.6 percent to $9.18 on Friday.

EYES ON GDP DATA, APPLE

The latest data on fourth-quarter U.S. gross domestic product is expected on Thursday, and some analysts predict an upward revision following trade data that showed America's deficit shrank in December to its narrowest in nearly three years.

U.S. GDP unexpectedly contracted in the fourth quarter, according to an earlier government estimate, but analysts said there was no reason for panic, given that consumer spending and business investment picked up.

Investors will be looking for any hints of changes in the Fed's policy of monetary easing when Fed Chairman Ben Bernake speaks before congressional committees on Tuesday and Wednesday.

Shares of Apple will be watched closely next week when the company's annual stockholders' meeting is held.

On Friday, a U.S. judge handed outspoken hedge fund manager David Einhorn a victory in his battle with the iPhone maker, blocking the company from moving forward with a shareholder vote on a controversial proposal to limit the company's ability to issue preferred stock.

(Additional reporting by Doris Frankel; Editing by Kenneth Barry)

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Syrian Flood Into Lebanon Stirs Fear of Looming Disaster

QAA, Lebanon — Quietly but inexorably, a human tide has crept into Lebanon, Syria’s smallest and most vulnerable neighbor.

As Syrians fleeing civil war pour over the border, the village priest here, Elian Nasrallah, trudges through muddy fields to deliver blankets. His family runs a medical clinic for refugees. When Christian villagers fret about the flood of Sunni Muslims, he replies that welcoming them is “the real Christianity.”

But the priest and his parishioners cannot keep up. The United Nations counts more than 305,000 Syrian refugees in Lebanon, but local officials and aid workers say the actual number is about 400,000, saturating this country of four million.

The Lebanese government — by design — has largely left them to fend for themselves. Deeply divided over Syria, haunted by memories of an explosive refugee crisis a generation ago, it has mostly ignored the problem, dumping it on overwhelmed communities like Qaa.

So far, Lebanon’s delicate balance has persevered, but there is a growing sense of emergency.

Sectarian tensions are rising. Fugitive Syrian rebels in border villages have clashed with Lebanese soldiers. The government’s anemic response has delayed international aid. Local volunteers are running out of cash and patience.

And the battle for Damascus, Syria’s capital, has barely begun. Should fighting overwhelm that religiously and politically mixed city of 2.5 million a half-hour drive from Lebanon, the Lebanese fear a cataclysm that could sweep away their tenuous calm.

“There is a limit to what the country can handle,” said Nadim Shubassi, mayor of Saidnayel, a Sunni town now packed with Syrians. “Maybe we have reached this limit now.”

Lebanon’s refugee crisis does not match the familiar image of vast, centralized tent camps and armies of foreign aid organizations. It is nowhere, and everywhere. Displaced Syrians seem to fill every nook and cranny: half-finished cinder block houses, stables, crowded apartments.

It is easy to miss them, until a second glance. Drying laundry peeks from construction sites. Bedsheets hang in shop windows, concealing stark living spaces. Daffodil sellers, shoeshine men, women and children begging in Beirut — all incant, “Min Suria.” From Syria.

At first, most refugees — mainly Sunnis, like most of the rebels fighting Syria’s government — headed for friendly Sunni areas. Now, those communities are swamped and resentful, and Syrians are spreading to places where they fit less comfortably, from Christian mountain villages to the Mediterranean city of Tyre in the southern Shiite Muslim heartland.

They are moving, with some trepidation, into Qaa, in the northern Bekaa Valley, the territory of the powerful Shiite militia Hezbollah, which is allied with Syria’s government and, to many refugees, just as fearsome.

As they flee increasingly sectarian killing, Syrians layer their fears onto those of a country deeply scarred by its own generation-long sectarian civil war. They are testing, yet also relying on, the fragile yet flexible balance that has endured here, punctured by occasional fighting, since Lebanon’s war ended 22 years ago.

In Baalbek, a Hezbollah stronghold where a poster of the Syrian president, Bashar al-Assad, grins down on a busy street, refugees turn to Sawa, a community group that views helping them as embodying its nonsectarian mission. Still, they rattle Abbas Othman, a Sawa member.

“We are worried they will bring their civil war here,” he said.

One recent evening in Qaa, Mr. Nasrallah, the priest, stood outside a burlap shack that sheltering a Syrian family of 12. They clamored around him; they had eaten only potatoes that day. Cold crept in as a blue dusk fell. One man implored, “You are responsible for us!”

The priest threw up his hands.

“It’s wartime,” he said. “Is the government doing its job or not?”

Lebanese decision-makers wanted it this way, at first. A year ago, just 5,000 Syrians had fled here, and Hezbollah, Lebanon’s most powerful political party, denied any sense of crisis.

Reporting was contributed by Hwaida Saad, Hania Mourtada, Ben Solomon and Lynsey Addario.

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FDA approves new targeted breast cancer drug

WASHINGTON (AP) — The Food and Drug Administration has approved a first-of-a-kind breast cancer medication that targets tumor cells while sparing healthy ones.

The drug Kadcyla from Roche combines the established drug Herceptin with a powerful chemotherapy drug and a third chemical linking the medicines together. The chemical keeps the cocktail intact until it binds to a cancer cell, delivering a potent dose of anti-tumor poison.

Cancer researchers say the drug is an important step forward because it delivers more medication while reducing the unpleasant side effects of chemotherapy.

"This antibody goes seeking out the tumor cells, gets internalized and then explodes them from within. So it's very kind and gentle on the patients — there's no hair loss, no nausea, no vomiting," said Dr. Melody Cobleigh of Rush University Medical Center. "It's a revolutionary way of treating cancer."

Cobleigh helped conduct the key studies of the drug at the Chicago facility.

The FDA approved the new treatment for about 20 percent of breast cancer patients with a form of the disease that is typically more aggressive and less responsive to hormone therapy. These patients have tumors that overproduce a protein known as HER-2. Breast cancer is the second most deadly form of cancer in U.S. women, and is expected to kill more than 39,000 Americans this year, according to the National Cancer Institute.

The approval will help Roche's Genentech unit build on the blockbuster success of Herceptin, which has long dominated the breast cancer marketplace. The drug had sales of roughly $6 billion last year.

Genentech said Friday that Kadcyla will cost $9,800 per month, compared to $4,500 per month for regular Herceptin. The company estimates a full course of Kadcyla, about nine months of medicine, will cost $94,000.

FDA scientists said they approved the drug based on company studies showing Kadcyla delayed the progression of breast cancer by several months. Researchers reported last year that patients treated with the drug lived 9.6 months before death or the spread of their disease, compared with a little more than six months for patients treated with two other standard drugs, Tykerb and Xeloda.

Overall, patients taking Kadcyla lived about 2.6 years, compared with 2 years for patients taking the other drugs.

FDA specifically approved the drug for patients with advanced breast cancer who have already been treated with Herceptin and taxane, a widely used chemotherapy drug. Doctors are not required to follow FDA prescribing guidelines, and cancer researchers say the drug could have great potential in patients with earlier forms of breast cancer

Kadcyla will carry a boxed warning, the most severe type, alerting doctors and patients that the drug can cause liver toxicity, heart problems and potentially death. The drug can also cause severe birth defects and should not be used by pregnant women.

Kadcyla was developed by South San Francisco-based Genentech using drug-binding technology licensed from Waltham, Mass.-based ImmunoGen. The company developed the chemical that keeps the drug cocktail together and is scheduled to receive a $10.5 million payment from Genentech on the FDA decision. The company will also receive additional royalties on the drug's sales.

Shares of ImmunoGen Inc. rose 2 cents to $14.32 in afternoon trading. The stock has ttraded in a 52-wek range of $10.85 to $18.10.

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Wall Street rebounds on HP results, Fed officials' views

NEW YORK (Reuters) - U.S. stocks rose on Friday as Dow component Hewlett-Packard surged on strong results and comments from Fed officials allayed fears that the central bank would curtail its stimulus measures.

Federal Reserve Chairman Ben Bernanke downplayed worries that the Fed has fueled asset bubbles that could hurt the economy in a private meeting with bond dealers and investors earlier this month, Bloomberg reported on Friday.

Bernanke's view helped ease fears that the central bank may end its easy money policies. Minutes from the Federal Reserve's January meeting hit markets on Wednesday as investors interpreted divergent opinions on the benefit of stimulus as a sign the measures may be halted sooner than thought.

"They are in uncharted territory with divergent views," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago. "I could see some pretty heated opinions on what the ultimate outcome is, so I do believe there is dissension."

Hewlett-Packard Co shares jumped more than 12 percent and gave one of the biggest boosts to both the Dow and the S&P 500 after the personal computer maker's quarterly revenue and forecasts beat expectations. Hewlett-Packard's stock rose to $19.20 at the close, up 12.3 percent for the day.

The Dow Jones industrial average <.dji> gained 119.95 points, or 0.86 percent, to 14,000.57 at the close. The Standard & Poor's 500 Index <.spx> rose 13.18 points, or 0.88 percent, to 1,515.60. The Nasdaq Composite Index <.ixic> added 30.33 points, or 0.97 percent, to end at 3,161.82.

With Bernanke's reported comments much on their minds in Friday's session, investors will want the Fed chairman to reiterate his remarks publicly when he speaks before the Senate Banking Committee on Tuesday. That would echo comments made by two top Fed officials on Friday.

Boston Fed President Eric Rosengren and Fed Governor Jerome Powell both defended the U.S. central bank's asset-buying program, arguing that the policy helps the U.S. economy.

The S&P 500 shed 1.9 percent over the previous two sessions, its worst two-day drop since early November, following the release of the Fed's minutes on Wednesday. The selloff marked the end of seven back-to-back weeks of gains for stocks.

For the week, the S&P 500 slipped 0.3 percent and the Nasdaq lost nearly 1 percent. Only the Dow ended the week with a gain - up just 0.1 percent.

HP's results come near the end of a relatively strong earnings season in which 70 percent of S&P 500 companies beat analysts' expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters, according to Thomson Reuters data.

"Overall, the earnings supports were better than expected in this cycle," said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois. "We may see the market rising during the month of March."

Fourth-quarter earnings for S&P 500 companies are estimated to have risen 6 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

But with only a handful of companies left to report earnings, investors are looking ahead to the possibility of hefty automatic budget cuts that could happen on March 1.

A large option investor appeared to be adjusting a bearish view on the SPDR S&P 500 Trust fund while locking in previously established gains, in a possible hedge ahead of the automatic budget cuts that are set to take effect at the beginning of next month. The play involved weekly puts, expiring next Friday.

"An institutional investor appears to be rolling down and increasing in size a defensive hedge timed to match the March 1 deadline for the sequester," said Henry Schwartz, president of options analytics firm Trade Alert.

The trader sold 132,000 $149 to $150 weekly put spreads for 22 cents as shares of the exchange-traded fund had traded near $151.14 on Friday morning. The transaction entailed the sale of $150 weekly puts to buy the $149 weekly puts. In addition, the investor purchased another 42,000 $149 weekly puts, which increases the size of the hedge to 174,000 contracts.

"It is likely this large position protects an existing underlying long position in a portfolio," Schwartz said.

In another political risk factor, Italians go to the polls this weekend in an election that could threaten reforms in the indebted country. Silvio Berlusconi's resurgence has thrown the vote wide open, with deep uncertainty over whether the poll can produce the strong government the country needs.

Inconclusive Greek elections last year sparked a protracted selloff and a period of uncertainty in markets.

In the tech sector, Marvell Technology Group Ltd forecast results this quarter that were largely above analysts' expectations. Marvell gained market share in the hard-disk drive and flash-storage businesses. The stock rose 4.4 percent to $9.89.

Texas Instruments Inc raised its dividend by a third and boosted its stock-buyback program, driving its stock up 5.2 percent to $34.18.

The PHLX semiconductor index <.sox> gained 2.1 percent.

"Dividends growing are another way the market's level is justified, if not especially attractive at these levels," said Rex Macey, chief investment officer of Wilmington Trust in Atlanta, who manages about $20 billion in assets.

On the downside, Abercrombie & Fitch dropped 4.5 percent to $46.86 after the youth-oriented clothing retailer reported a drop in fourth-quarter comparable sales, even as its latest quarterly earnings topped estimates.

Insurer American International Group Inc posted fourth-quarter results that beat analysts' expectations. AIG's stock advanced 3.1 percent to $38.45.

About three stocks rose for every one that fell on both the New York Stock Exchange and Nasdaq.

Around 5.8 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the 20-day moving average of around 6.51 billion shares.

(Additional Reporting by Ryan Vlastelica and Doris Frankel; Editing by Kenneth Barry and Jan Paschal)

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Danica Patrick Opens Up About Dating Competitor Ricky Stenhouse, Jr.

By Dahvi Shira

02/22/2013 at 07:25 PM EST

Danica Patrick and Ricky Stenhouse Jr.

Tom Pennington/NASCAR/Getty

Danica Patrick knows mixing business with pleasure isn't wise, but it's not stopping her.

"I don't think it was a good idea. [But] there was nothing I could do about it," she tells menshealth.com of getting into a relationship with fellow NASCAR racer, Ricky Stenhouse, Jr., 25. "You can't tell your heart who to like and not like. It just happened."

Patrick, 30, isn't worried about running into a future ex-boyfriend on the racetrack.

"I know I'm setting myself up for that," she says with a laugh. "But I choose not think about that possibility right now. I'm going to be positive."

For now, the competition is friendly between the history-making superstar – who announced her split from husband Paul Hospenthal in November – and her new beau.

"Ricky and I have always had that situation where we give each other room [on the track]," Patrick says. "We respect each other on the track. I don't see any reason for that to change."

But despite the relationship, business is still business, and if something happened to her man mid-competition, she'd leave his care to handlers and continue on with the race.

"We both understand that this is a dangerous sport," she says. "We know that things will happen, and we have faith in the safety of the cars and the tracks and the medical staff. If something did happen to him, there's nothing I could do to help. I'd just have to remember that everything that needed to be done to make him safe was being done."

Patrick, meanwhile, is set for the coveted pole position for her second turn in the Daytona 500 Sunday.

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