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Showing posts with label World. Show all posts

Stock futures point to higher open, ADM up early


NEW YORK (Reuters) - Stock index futures pointed to a modestly higher open on Tuesday, retracing lost ground on Monday in the market's worst daily session since November.


Investors will be looking to the Institute for Supply Management's January non-manufacturing index, due at 10 a.m. Economists forecast a reading of 55.2 versus 55.7 in December.


Last week, ISM manufacturing index for January showed the pace of growth in manufacturing picked up to its highest level in nine months.


On Monday major stock indexes dropped about 1 percent, pressured by renewed worries over the euro zone's sovereign debt crisis. While the day's decline pushed the S&P 500 into negative territory for February, equities have been strong performers, with the benchmark S&P 500 index up 4.9 percent for 2013.


Wall Street has advanced on strong fourth-quarter earnings and signs of improved economic growth, suggesting the market's longer-term trend remains higher.


"Markets may have been slightly ahead of themselves, but investors recognize that earnings and data are both more positive than we previously thought, so no one should worry that yesterday was the start of anything bigger," said Oliver Pursche, president of Gary Goldberg Financial Services in Suffern, New York.


Archer Daniels Midland reported revenue and adjusted fourth-quarter earnings that beat expectations, boosted by strong global demand for oilseeds. Shares rose 2 percent to $29 in premarket trading.


Estee Lauder Cos Inc gained 3.2 percent to $63 before the bell after reporting results.


According to Thomson Reuters data, of the 256 S&P 500 companies that have reported earnings thus far, 68.4 percent have beaten profit expectations, compared with the 62 percent average since 1994 and the 65 percent average over the past four quarters.


Fourth-quarter earnings for S&P 500 companies are expected to rise 4.4 percent, according to the data. That estimate is above the 1.9 percent forecast at the start of earnings season, but well below the 9.9 percent forecast on October 1.


S&P 500 futures rose 5.3 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 48 points and Nasdaq 100 futures rose 10.25 points.


At current levels, the S&P is about 5.4 percent away from its all-time intraday high of 1,576.09, reached in October 2011.


McGraw-Hill will be in focus a day after news the U.S. Justice Department plans to sue the company's Standard & Poor's unit over its mortgage bond ratings. The action would mark the first such federal action against a credit rating agency related to the recent financial crisis.


The stock plummeted almost 14 percent in Monday's session, its worst daily losses since the October 1987 market crash, though it rose 0.7 percent to $50.64 in Tuesday premarket trading.


U.S. shares of BP Plc rose 1.3 percent to $44.18 before the bell after the company reported earnings that beat expectations and said underlying financial momentum would be "strongly evident" by 2014.


Dell Inc may also be volatile as the company moved closer to a nearly $24 billion buyout deal to take the company private. The stock rose 1 percent to $13.40 in premarket trading.


U.S. stocks slid on Monday as worries about Europe caused the market to pull back from recent gains.


(Editing by Kenneth Barry)



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Stock futures dip after 5-year highs with data, earnings due

NEW YORK (Reuters) - U.S. stock index futures slipped on Monday after the S&P 500 hit a five-year high and the Dow rose above 14,000 last week as investors waited for factory orders data and another round of corporate earnings.


The benchmark S&P index <.spx> is up more than 6 percent for the year, with nearly half of the gains coming in the session after U.S. legislators successfully sidestepped the "fiscal cliff" of tax increases and spending cuts which threatened to derail the economic recovery.


The gains have left the index roughly 60 points away from its all-time intraday high of 1,576.09.


"We are coming off an economic data hangover from Friday and the market was on a bullish spree. This is an opportunity for investors to take advantage of the bull run," said Andre Bakhos, director of market analytics at Lek Securities in New York.


The Dow's march above 14,000 was the highest October 2007.


"With an early year run of better than 6 percent, investors are already behind in performance and pullbacks should be shallow and well contained, giving the underweighted investors the opportunity to move into equities."


Investors will look to December factory orders data for signs of economic improvement. Economists in a Reuters survey expect a rise of 2.2 percent compared with an unchanged reading in December.


Economic data has pointed to a modest U.S. recovery, but the data has not been strong enough to upset investor expectations the Federal Reserve will continue its stimulus policy that has buoyed stocks.


Earnings are due from a number of companies including Anadarko Petroleum Corp ; Yum! Brands Inc , owner of fast-food chains, and household products company Clorox .


S&P 500 futures fell 4.4 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 30 points, and Nasdaq 100 futures shed 7.75 points.


According to Thomson Reuters data, of the 239 companies in the S&P 500 that have reported earnings through Friday, 68 percent have reported earnings above analyst expectations compared with the 62 percent average since 1994 and the 65 percent average over the past four quarters.


S&P 500 fourth-quarter earnings are expected to rise 3.8 percent, according to the data. That estimate is above the 1.9 percent forecast at the start of earnings season, but well below the 9.9 percent fourth-quarter earnings forecast on October 1.


Japan Airlines Co Ltd said it will talk to Boeing Co about compensation for the grounding of the 787 Dreamliner, adding that the idling of its jets would cost it nearly $8 million from its earnings through to the end of March.


Chevron Corp dipped 0.9 percent to $115.47 in premarket trade after UBS cut its rating on the Dow component to "neutral.


European shares dipped by midday as a near-term risk of a technical sell-off and political uncertainty in the euro zone prompted a bout of profit taking with indexes hovering near multiyear highs. <.eu/>


Asian shares climbed to 18-month highs after U.S. data showed some promise of a credible recovery but not strong enough to threaten the Federal Reserve's easing plans, while momentum also gained on firmer manufacturing data from Europe and China.


(Reporting by Chuck Mikolajczak; Editing by Chizu Nomiyama and Kenneth Barry)



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"Great Rotation"- A Wall Street fairy tale?

NEW YORK (Reuters) - Wall Street's current jubilant narrative is that a rush into stocks by small investors has sparked a "great rotation" out of bonds and into equities that will power the bull market to new heights.


That sounds good, but there's a snag: The evidence for this is a few weeks of bullish fund flows that are hardly unusual for January.


Late-stage bull markets are typically marked by an influx of small investors coming late to the party - such as when your waiter starts giving you stock tips. For that to happen you need a good story. The "great rotation," with its monumental tone, is the perfect narrative to make you feel like you're missing out.


Even if something approaching a "great rotation" has begun, it is not necessarily bullish for markets. Those who think they are coming early to the party may actually be arriving late.


Investors pumped $20.7 billion into stocks in the first four weeks of the year, the strongest four-week run since April 2000, according to Lipper. But that pales in comparison with the $410 billion yanked from those funds since the start of 2008.


"I'm not sure you want to take a couple of weeks and extrapolate it into whatever trend you want," said Tobias Levkovich, chief U.S. equity strategist at Citigroup. "We have had instances where equity flows have picked up in the last two, three, four years when markets have picked up. They've generally not been signals of a continuation of that trend."


The S&P 500 rose 5 percent in January, its best month since October 2011 and its best January since 1997, driving speculation that retail investors were flooding back into the stock market.


Heading into another busy week of earnings, the equity market is knocking on the door of all-time highs due to positive sentiment in stocks, and that can't be ignored entirely. The Standard & Poor's 500 Index <.spx> ended the week about 4 percent from an all-time high touched in October 2007.


Next week will bring results from insurers Allstate and The Hartford , as well as from Walt Disney , Coca-Cola Enterprises and Visa .


But a comparison of flows in January, a seasonal strong month for the stock market, shows that this January, while strong, is not that unusual. In January 2011 investors moved $23.9 billion into stock funds and $28.6 billion in 2006, but neither foreshadowed massive inflows the rest of that year. Furthermore, in 2006 the market gained more than 13 percent while in 2011 it was flat.


Strong inflows in January can happen for a number of reasons. There were a lot of special dividends issued in December that need reinvesting, and some of the funds raised in December tax-selling also find their way back into the market.


During the height of the tech bubble in 2000, when retail investors were really embracing stocks, a staggering $42.7 billion flowed into equities in January of that year, double the amount that flowed in this January. That didn't end well, as stocks peaked in March of that year before dropping over the next two-plus years.


MOM AND POP STILL WARY


Arguing against a 'great rotation' is not necessarily a bearish argument against stocks. The stock market has done well since the crisis. Despite the huge outflows, the S&P 500 has risen more than 120 percent since March 2009 on a slowly improving economy and corporate earnings.


This earnings season, a majority of S&P 500 companies are beating earnings forecast. That's also the case for revenue, which is a departure from the previous two reporting periods where less than 50 percent of companies beat revenue expectations, according to Thomson Reuters data.


Meanwhile, those on the front lines say mom and pop investors are still wary of equities after the financial crisis.


"A lot of people I talk to are very reluctant to make an emotional commitment to the stock market and regardless of income activity in January, I think that's still the case," said David Joy, chief market strategist at Columbia Management Advisors in Boston, where he helps oversee $571 billion.


Joy, speaking from a conference in Phoenix, says most of the people asking him about the "great rotation" are fund management industry insiders who are interested in the extra business a flood of stock investors would bring.


He also pointed out that flows into bond funds were positive in the month of January, hardly an indication of a rotation.


Citi's Levkovich also argues that bond investors are unlikely to give up a 30-year rally in bonds so quickly. He said stocks only began to see consistent outflows 26 months after the tech bubble burst in March 2000. By that reading it could be another year before a serious rotation begins.


On top of that, substantial flows continue to make their way into bonds, even if it isn't low-yielding government debt. January 2013 was the second best January on record for the issuance of U.S. high-grade debt, with $111.725 billion issued during the month, according to International Finance Review.


Bill Gross, who runs the $285 billion Pimco Total Return Fund, the world's largest bond fund, commented on Twitter on Thursday that "January flows at Pimco show few signs of bond/stock rotation," adding that cash and money markets may be the source of inflows into stocks.


Indeed, the evidence suggests some of the money that went into stock funds in January came from money markets after a period in December when investors, worried about the budget uncertainty in Washington, started parking money in late 2012.


Data from iMoneyNet shows investors placed $123 billion in money market funds in the last two months of the year. In two weeks in January investors withdrew $31.45 billion of that, the most since March 2012. But later in the month money actually started flowing back.


(Additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)



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Exxon’s 2012 profit of $44.9B just misses record






Exxon Mobil Corp. nearly set a record for annual profit. The oil giant reported Friday that 2012 net income was $ 44.88 billion, just $ 340 million — less than 1 percent — short of the company’s record set in 2008, when crude oil prices hit an all-time high. Exxon‘s profit for the last 10 years totals $ 343.4 billion.


— $ 44.88 billion in 2012






— $ 41.06 billion in 2011


— $ 30.46 billion in 2010


— $ 19.28 billion in 2009


— $ 45.22 billion in 2008


— $ 40.61 billion in 2007


— $ 39.50 billion in 2006


— $ 36.13 billion in 2005


— $ 25.33 billion in 2004


— $ 20.96 billion in 2003


Source: Exxon Mobil annual reports filed with the U.S. Securities and Exchange Commission


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"Great Rotation"- A Wall Street fairy tale?

NEW YORK (Reuters) - Wall Street's current jubilant narrative is that a rush into stocks by small investors has sparked a "great rotation" out of bonds and into equities that will power the bull market to new heights.


That sounds good, but there's a snag: The evidence for this is a few weeks of bullish fund flows that are hardly unusual for January.


Late-stage bull markets are typically marked by an influx of small investors coming late to the party - such as when your waiter starts giving you stock tips. For that to happen you need a good story. The "great rotation," with its monumental tone, is the perfect narrative to make you feel like you're missing out.


Even if something approaching a "great rotation" has begun, it is not necessarily bullish for markets. Those who think they are coming early to the party may actually be arriving late.


Investors pumped $20.7 billion into stocks in the first four weeks of the year, the strongest four-week run since April 2000, according to Lipper. But that pales in comparison with the $410 billion yanked from those funds since the start of 2008.


"I'm not sure you want to take a couple of weeks and extrapolate it into whatever trend you want," said Tobias Levkovich, chief U.S. equity strategist at Citigroup. "We have had instances where equity flows have picked up in the last two, three, four years when markets have picked up. They've generally not been signals of a continuation of that trend."


The S&P 500 rose 5 percent in January, its best month since October 2011 and its best January since 1997, driving speculation that retail investors were flooding back into the stock market.


Heading into another busy week of earnings, the equity market is knocking on the door of all-time highs due to positive sentiment in stocks, and that can't be ignored entirely. The Standard & Poor's 500 Index <.spx> ended the week about 4 percent from an all-time high touched in October 2007.


Next week will bring results from insurers Allstate and The Hartford , as well as from Walt Disney , Coca-Cola Enterprises and Visa .


But a comparison of flows in January, a seasonal strong month for the stock market, shows that this January, while strong, is not that unusual. In January 2011 investors moved $23.9 billion into stock funds and $28.6 billion in 2006, but neither foreshadowed massive inflows the rest of that year. Furthermore, in 2006 the market gained more than 13 percent while in 2011 it was flat.


Strong inflows in January can happen for a number of reasons. There were a lot of special dividends issued in December that need reinvesting, and some of the funds raised in December tax-selling also find their way back into the market.


During the height of the tech bubble in 2000, when retail investors were really embracing stocks, a staggering $42.7 billion flowed into equities in January of that year, double the amount that flowed in this January. That didn't end well, as stocks peaked in March of that year before dropping over the next two-plus years.


MOM AND POP STILL WARY


Arguing against a 'great rotation' is not necessarily a bearish argument against stocks. The stock market has done well since the crisis. Despite the huge outflows, the S&P 500 has risen more than 120 percent since March 2009 on a slowly improving economy and corporate earnings.


This earnings season, a majority of S&P 500 companies are beating earnings forecast. That's also the case for revenue, which is a departure from the previous two reporting periods where less than 50 percent of companies beat revenue expectations, according to Thomson Reuters data.


Meanwhile, those on the front lines say mom and pop investors are still wary of equities after the financial crisis.


"A lot of people I talk to are very reluctant to make an emotional commitment to the stock market and regardless of income activity in January, I think that's still the case," said David Joy, chief market strategist at Columbia Management Advisors in Boston, where he helps oversee $571 billion.


Joy, speaking from a conference in Phoenix, says most of the people asking him about the "great rotation" are fund management industry insiders who are interested in the extra business a flood of stock investors would bring.


He also pointed out that flows into bond funds were positive in the month of January, hardly an indication of a rotation.


Citi's Levkovich also argues that bond investors are unlikely to give up a 30-year rally in bonds so quickly. He said stocks only began to see consistent outflows 26 months after the tech bubble burst in March 2000. By that reading it could be another year before a serious rotation begins.


On top of that, substantial flows continue to make their way into bonds, even if it isn't low-yielding government debt. January 2013 was the second best January on record for the issuance of U.S. high-grade debt, with $111.725 billion issued during the month, according to International Finance Review.


Bill Gross, who runs the $285 billion Pimco Total Return Fund, the world's largest bond fund, commented on Twitter on Thursday that "January flows at Pimco show few signs of bond/stock rotation," adding that cash and money markets may be the source of inflows into stocks.


Indeed, the evidence suggests some of the money that went into stock funds in January came from money markets after a period in December when investors, worried about the budget uncertainty in Washington, started parking money in late 2012.


Data from iMoneyNet shows investors placed $123 billion in money market funds in the last two months of the year. In two weeks in January investors withdrew $31.45 billion of that, the most since March 2012. But later in the month money actually started flowing back.


(Additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)



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The Untold Story: Columbia Shuttle Disaster and Mysterious ‘Day 2 Object’






A decade has passed since the ill-fated Columbia space shuttle orbiter and its seven-person crew ended their journey in catastrophe. During its Feb. 1, 2003 plunge back to Earth, the vehicle broke apart, with wreckage strewn across east Texas and western Louisiana.


Painstaking work by the Columbia Accident Investigation Board (CAIB) later identified the physical cause of the disaster as damage to Columbia‘s left wing that occurred just 81.9 seconds after launch.






A piece of insulating foam separated from the left “bipod ramp” that connected the shuttle’s fuel tank to the orbiter, gouging a hole in a reinforced carbon-carbon (RCC) panel on the leading edge of Columbia’s left wing.


Now, 10 years later, new information is coming to light on an event early in Columbia’s mission, often termed the “Flight Day 2 Object.”


When added to the wealth of information already known about how the Columbia accident occurred, this story reinforces a picture of technical slip-ups, a lack of effective communications and a failure of early detection and reaction to anomalies, all of which contributed to the disaster. [Video: Astronaut Jerry Ross Remembers Columbia]


Panel 8


About a day after launch on Jan. 16, 2003, with Columbia’s crew settling into its mission, an object roughly the size of a notebook computer drifted away from the orbiter out into space.


According to a source that asked not to be named, “due to a procedural issue” the object was not recognized during Columbia’s 16-day mission by the Air Force Space Command (AFSPC). That AFSPC procedure was later corrected.


The Flight Day 2 object, according to a source then working with the CAIB to help discern the cause of the Columbia calamity, was a fragment of the RCC panel on the orbiter’s wing. A team of experts concluded that the departing piece had been lodged within the left wing by aerodynamic forces on Columbia’s liftoff. It was set adrift after the orbiter reached space.


The CAIB made the final conclusion that the foam-shedding incident on Columbia’s takeoff affected panel 8 of the RCC heat-shielding, which was located on the orbiter’s leading edge. That foam strike punctured a hole in the RCC panel roughly 16 inches (41 centimeters) by 16 inches. Analysts estimated that a hole as small as 10 inches (25 cm) across could have caused the orbiter to be destroyed on re-entry through Earth’s atmosphere.


That left-wing damage permitted the penetration of hot, re-entry gases, which led to the loss of Columbia and its crew. Superheated air entered the leading-edge insulation and progressively melted the aluminum structure of the left wing, until increasing aerodynamic forces led to loss of control, failure of the wing and disintegration of the orbiter.


From a re-entry standpoint, Columbia broke up very late,  at a low altitude, roughly 30 to 35 miles (50 to 55 kilometers) above Earth, where heating had almost ceased. The breakup was primarily mechanical, due to localized heating that occurred earlier in the re-entry process.


Serendipitous observations


A number of experts who studied the loss of Columbia and its crew shared their theories on the cause of the Flight Day 2 incident with SPACE.com.


Early on, experts had thought that perhaps a piece of orbital debris hit the shuttle.


In post-disaster work, an Air Force Space Command Space Analysis Center team worked with the Space Surveillance Network (SSN), a worldwide system of U.S. Army, Navy and Air Force-operated ground-based radars and optical sensors.


That team and SSN operators went back after Columbia’s demise to see if there had been any serendipitous observations taken the orbiter during its mission by accident, among the wealth of photos of the sky during that period.


Indeed, that team did find some observations and noted there was another piece of debris in orbit with Columbia starting on Day 2 of its flight. Aiding in this identification was the fact that Columbia had been in a unique orbit, for not only the shuttle but virtually any other satellite, so there wasn’t much else in the orbit.


After noting the Day 2 object, researchers began an investigation to determine the object’s separation velocity and its time of release from Columbia.


Investigators hoped to see if the object departed the orbiter at high velocity, indicating a possible collision, or if it came off at low velocity, signifying something drifting away, perhaps out of Columbia’s cargo bay.


Radar information


With radar information on hand concerning the object’s size, and measurements of how quickly it decayed in Earth orbit, analysts could tell it was something with the dimensions of a notebook computer. Best estimates are that the Flight Day 2 object decayed from orbit on Jan. 20, disintegrating as it fell down through Earth’s atmosphere. The item was never given a satellite catalogue number since it decayed before its discovery.


The Air Force and SSN analysts worked closely with Air Force Research Laboratory (AFRL) specialists, all focused on understanding the object’s makeup and attempting to tag likely materials that had the right density. A final determination, according to a SPACE.com source, was that it was a piece of Columbia’s carbon-carbon leading edge.


“That determination encouraged NASA to continue their testing of firing foam at the leading edge … finally getting a result that very closely matched our analysis,” the source, who asked not to be named, said.


A post-disaster review of Columbia’s movements on Day 2 showed the detached object appeared to separate after the orbiter undertook a couple of maneuvers to change its orientation.


The Space Analysis Center team believed that aerodynamic forces on ascent had pushed the Day 2 object back into the wing and Columbia’s maneuvers subsequently shook the object loose.


Foam impact


Another view of the situation at the time is offered by a Columbia Accident Investigation Board (CAIB) member, Scott Hubbard, then director of the NASA Ames Research Center and currently professor of aeronautics and astronautics at Stanford University.


Hubbard played an instrumental role in spotlighting the cause of Columbia’s demise. To do so, he relied on computational modeling, reinforced by experimental testing with a large compressed-gas gun done by Southwest Research Institute (SwRI) scientists and engineers in San Antonio, Texas. During the tests, scientists fired a piece of foam at a target at speeds comparable to what a falling piece of debris from the shuttle would have experienced. Researchers then observed the damage.


Hubbard oversaw those tests, which showed that a chunk of falling insulating foam from the large, exterior fuel tank could indeed punch a hole in the leading edge of the orbiter’s left wing — panel 8 of the RCC thermal protection system, to be exact.


“My decision to direct as definitive a test as possible of the foam impact on Columbia was driven by the desire to provide the crew and shuttle program with a clear, physical cause so that ‘return to flight’ could be carried out without hesitation,” Hubbard told SPACE.com.


While there was a significant collection of circumstantial evidence — film of launch, “black box” data and collected debris — Hubbard said he had the strong sense that NASA was not converging on an answer to such basic parameters as the size of the falling foam.


Uncertainty of observations


“During the CAIB deliberations, the radar data and analysis by AFRL was occasionally presented to the board, but the uncertainty of the observations and myriad initial interpretations did little to convince us that the mysterious ‘second day’ object was part of the orbiter,” Hubbard said. [Columbia Shuttle Disaster Explained (Infographic)]


“I can state quite unequivocally that the AFRL examination of the radar profile had no influence on the selection of the SwRI test parameters. Computational fluid dynamics analysis, the 35mm film data and emerging debris information had already convinced my team and me to aim at Panel 8 of the RCC.”


The AFRL did not issue their final summary report until July 20, 2003, nearly two weeks after the definitive SWRI tests, Hubbard said.


“It is worth noting that the SWRI tests did produce a large section of RCC that, had it floated away from the orbiter, may have resembled the 2nd day piece,” Hubbard said. “However, this observation is definitely post hoc and was not a test prediction.”


Air Force Space Command response


According to CAIB report findings, the Day 2 object was discovered after the accident during Air Force processing of space surveillance network data, which yielded 3,180 separate radar or optical observations from Air Force and Navy sensors. It was the post-accident, detailed examination of these observations that revealed the Day 2 object.


After SPACE.com requested help in clarifying why the Day 2 object was not recognized during the mission, and what procedural error had since been fixed, an Air Force Space Command spokesperson responded with a statement.


“The Space Control Center (now Joint Space Operations Center) did change a


space situational awareness process involving space shuttle missions after the space shuttle Columbia accident,” the AFSC statement notes. “Before the Columbia accident, the Space Control Center did conjunction analysis (collision avoidance) during space shuttle missions using NASA positional data which better modeled the predicted position of Columbia for the conjunction screenings since it was more accurate than the data from AF sensors.”


Determined in hindsight


The AFSC statement explains that the NASA positional data came from their sensors, which could more accurately detect and model small orbital adjustments of the shuttle during missions than could other methods. Since NASA provided this positional data, the Space Control Center processed AF sensor data for Columbia using only basic astrodynamic algorithms and models. These, however, failed to provide high enough fidelity to definitely separate potential debris from the space shuttle orbiter.


“After the space shuttle Columbia investigation, the Space Control Center, in conjunction with NASA, decided to add additional analyst time to search for objects in close proximity to the shuttle, using both NASA positional data and Air Force sensor data,” the statement explains.


“It was determined in hindsight that while the previous process of using NASA positional data made space shuttle collision avoidance better, it degraded the possibility of cataloguing debris near the space shuttle during missions. Changing the process to use both NASA positional data and Air Force sensor data improved the ability to possibly detect debris near the space shuttle during missions,” the statement concludes.


Leonard David has been reporting on the space industry for more than five decades. He is former director of research for the National Commission on Space and has written for SPACE.com since 1999. He reported on the Columbia accident in 2003 and subsequent hearings of the Columbia Accident Investigation Board.


Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Science News Headlines – Yahoo! News




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Stock futures point to higher open after payrolls data


NEW YORK (Reuters) - Stock futures were poised to open higher Friday as a slight disappointment in the January payroll report was offset by a strong upward revision for jobs in December.


Employment grew modestly in January, with 157,000 added in the month, slightly below expectations for 160,000. Still, the December report was revised upward to 196,000 from 155,000, supporting views the U.S. economic recovery remained on track despite a surprise contraction in fourth-quarter gross domestic product.


"Nice revision upward, and this month came in right at the sweet spot where job growth is picking up, but not at the point where the Fed's quantitative easing program is threatened," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.


The market may be vulnerable to a pullback at recent levels, and may see the S&P 500 coming off its best monthly performance since October 2011. However, declines may be limited, with investors having bought on dips over the past four weeks; the biggest daily drop on the S&P so far this year was just 0.39 percent.


"The market may be at something of a top here, but we are rising on improved economic fundamentals so the rally has been rational," said Luschini, who helps oversee $55 billion in assets.


Corporate earnings were also a focus for investors, with a trio of Dow components reporting profits that beat expectations.


Exxon Mobil Corp rose 0.7 percent to $90.60 in premarket trading after its results, and drugmaker Merck & Co fell 2.9 percent to $42. While Merck's profit was ahead of forecasts it gave a cautious outlook on 2013.


Chevron Corp rose 3 cents to $115.18 before the bell as its profit beat expectations.


S&P 500 futures rose 10.7 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 116 points and Nasdaq 100 futures rose 21.5 points.


The S&P advanced 5.1 percent in January, with gains driven by a sturdy start to the earnings season and a compromise in Washington that postponed the impact of a "fiscal cliff" of automatic spending cuts and tax hikes that were due to take effect early this year.


Of the 231 companies in the S&P 500 reporting earnings so far, 69.3 percent have exceeded expectations, according to Thomson Reuters data through Thursday morning. That is a higher proportion than over the past four quarters and above average since 1994.


Overall, S&P 500 fourth-quarter earnings rose 3.7 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season but well below a 9.9 percent profit growth forecast on October 1.


Other data due Friday include consumer sentiment, U.S. manufacturing, construction spending and car sales. January sentiment is seen edging slightly higher in the month while construction spending rises 0.6 percent in December.


U.S. stocks closed lower on Thursday amid investor caution ahead of the payroll report.


(Editing by Bernadette Baum)



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Refining margins boost 4Q profit at Exxon Mobil






DALLAS (AP) — Exxon Mobil Corp. said Friday that fourth-quarter earnings rose 6 percent to $ 9.95 billion with help from higher refining profit margins.


The company still makes most of its money by producing oil and gas, but that end of the business was less profitable than a year ago because of lower prices and production. Exxon made up the difference in the refining business.






The nation’s biggest oil company said Friday that net income equaled $ 2.20 per share, compared with $ 9.4 billion, or $ 1.97 per share, a year earlier.


Revenue fell 5 percent to $ 115.17 billion, a drop of $ 6.44 billion.


Analysts surveyed by FactSet expected profit of $ 1.99 per share on revenue of $ 115.22 billion.


Profit from exploration and production of oil and gas fell 12 percent but still totaled $ 7.76 billion, more than three-fourths of Exxon Mobil’s income for the quarter. Production fell 5 percent, oil prices dipped, and the company took in less money from asset sales.


Exxon Mobil produces most of its oil outside the United States. Profit from overseas production tumbled by nearly one-fifth, but Exxon partly offset that by boosting its profit from U.S. production by more than one-third.


Outside of exploration and production, most of Exxon’s other profit comes from refining and selling petroleum products such as gasoline, diesel and jet fuel. That business did very well in the fourth quarter, earning $ 1.8 billion, an increase of more than $ 1.3 billion from a year earlier, mainly due to higher refining margins.


Other oil refiners have also reported better margins this earnings season as they switched from foreign crude to cheaper U.S. oil.


Irving, Texas-based Exxon Mobil said it spent $ 5 billion during the quarter buying back its own shares.


In trading before Friday’s opening bell, the shares were up 54 cents to $ 90.51. They gained 4 percent in January.


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Stock futures flat as earnings roll in; data on tap

NEW YORK (Reuters) - Stocks were poised for a modestly lower open on Thursday as economic data continued to paint a mixed picture of the economy and as investors sifted through a host of corporate earnings reports.


Data showed the number of Americans filing new claims for unemployment benefits increased to 368,000 last week, bouncing off five-year lows in the prior week and exceeding an estimated 350,000, pointing to modest improvement in the labor market.


The claims data comes ahead of Friday's payrolls report, which is expected to show employers added 160,000 jobs in January after an increase of 155,000 in December.


A separate report showed incomes rose by 2.6 percent in December, the most in eight years, in a positive sign that could propel the economy forward.


Facebook Inc shares lost 6.4 percent to $29.23 in premarket trading. The company doubled its mobile advertising revenue in the fourth quarter but that growth trailed some of Wall Street's most aggressive estimates.


The S&P 500 <.spx> is up 5.3 percent for the month, after legislators in Washington temporarily sidestepped a "fiscal cliff" of automatic tax increases and spending cuts that could have derailed the economic recovery, and amid improving economic data and better-than-expected corporate earnings.


But the benchmark index has stalled recently and is virtually flat for the week, hovering near the 1,500 mark, as investors look for more catalysts to justify further gains.


"Unfortunately it's still a mixed picture, it appears we are just getting a lot of conflicting data right now," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.


"There is certainly a lot of information coming out this week - a lot of economic data, a lot of earnings and of course we have the employment number looming Friday, so with 1,500 right here, my guess is there is just not enough conviction to push us substantially higher yet."


United Parcel Service Inc lost 1.8 percent to $79.75 in premarket trading after the world's largest parcel delivery reported fourth-quarter earnings below analysts' estimates on Thursday and forecast weaker-than-expected profit for 2013.


S&P 500 futures fell 0.4 point and were slightly below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures dipped 2 points, and Nasdaq 100 futures lost 9.25 points.


Later in the session at 9:45 a.m. (1445 GMT), the Institute for Supply Management Chicago releases January index of manufacturing activity. Economists in a Reuters survey forecast a reading of 50.5 compared with 50.0 in December.


Qualcomm Inc gained 6.5 percent to $67.66 in premarket trading after the world's leading supplier of chips for cellphones beat analysts' expectations for quarterly profit and revenue and raised its financial targets for 2013.


Thomson Reuters data through Wednesday morning shows that of the 192 companies in the S&P 500 that have reported earnings this season, 68.8 percent have exceeded expectations, a higher proportion than over the past four quarters and above the average since 1994.


Overall, S&P 500 fourth-quarter earnings are forecast to have risen 3.8 percent. That's above the 1.9 percent forecast from the start of the earnings season, but well below a 9.9 percent fourth-quarter earnings growth forecast on October 1, the data showed.


WMS Industries Inc surged 55.7 percent to $25.48 in premarket after the company agreed to be acquired by Scientific Games Corp for $26 per share in cash. Scientific Games advanced 15.9 percent to $10.35.


(Editing by Bernadette Baum)



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Venus Can Have’Comet-Like’ Atmosphere






The planet Venus sometimes looks less like a planet and more like a comet, scientists say.


Scientists with the European Space Agency have discovered that a part of the upper atmosphere of Venus — its ionosphere — acts surprisingly different depending on daily changes in the sun’s weather. The side of Venus’ ionosphere that faces away from the sun can billow outward like the tail of a comet, while the side facing the star remains tightly compacted, researchers said.






The discovery was made using ESA’s Venus Express spacecraft, which observed Venus’s ionosphere during a period of low solar wind in 2010 to see exactly how the sun affects the way the planet’s atmosphere functions. In 2013, the sun is expected to reach the peak of its 11-year solar activity cycle.


“As this significantly reduced solar wind hit Venus, Venus Express saw the planet’s ionosphere balloon outwards on the planet’s ‘downwind’ nightside, much like the shape of the ion tail seen streaming from a comet under similar conditions,” ESA officials said in a statement today (Jan. 29).


It only takes 30 to 60 minutes for the planet’s comet-like tail to form after the solar wind dies down. Researchers observed the ionosphere stretch to at least 7,521 miles (12,104 kilometers) from the planet, said Yong Wei, a scientist at the Max Planck Institute in Katlenburg, Germany who worked on this research.


Earth’s ionosphere never becomes comet-like largely because the planet has its own magnetic field that balances out the sun’s influence on the way the atmospheric layer is shaped. Venus, however, doesn’t have its own magnetic field and is therefore subject to the whims of the sun’s solar wind.


Researchers think that Mars behaves in much the same way. The Red Planet doesn’t have a magnetic field to mitigate the influence of the sun’s wind either.


The Venus Express spacecraft launched in 2005 and has been orbiting the second planet from the sun since 2006. The spacecraft is equipped with seven instruments to study the atmosphere and surface of Venus in extreme detail. The spacecraft is currently in an extended mission slated to last until 2014 .


Follow Miriam Kramer on Twitter @mirikramer or SPACE.com @Spacedotcom. We’re also on Facebook & Google+.


Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Stock futures point to lower open after weak GDP read


NEW YORK (Reuters) - Stock index futures pointed to a slightly weaker open on Wednesday following an unexpected contraction in fourth-quarter economic activity.


The first read showed gross domestic product fell 0.1 percent, far below expectations for growth of 1.1 percent. However, a read on private sector employment topped forecasts, with the ADP National Employment report showing 192,000 jobs added in January, higher than the 165,000 expectation.


Futures dipped modestly following the GDP data; previously, they had indicated a flat open for equity markets, which have surged in recent sessions.


"This is one chink in the armor of the recent better-than-expected economic indicators. This will make people start to get wary," said Wayne Kaufman, chief market analyst at John Thomas Financial in New York. "If it turns out Sandy and the fiscal cliff were the reasons for (the contraction), people will shrug it off."


Deeper losses were prevented by a rise in both Boeing Co and Amazon.com Inc , which rallied after earnings, continuing a trend this quarter of high-profile names advancing after results.


Amazon.com Inc rose 8.8 percent to $283.30 in premarket trading a day after reporting better-than-expected fourth-quarter earnings and strong revenue growth. The rally put the stock within striking distance of an all-time high.


Boeing Co rose 1.3 percent to $74.60 before the bell after reporting adjusted fourth-quarter earnings that beat expectations. The Dow component also said that while production continued on its Dreamliner jet, which has had technical problems recently, it was suspending delivery until clearance was granted by the Federal Aviation Administration.


Thomson Reuters data showed that of the 174 companies in the S&P 500 that have reported earnings this season, 68.4 percent have been above analyst expectations, which is a higher proportion than over the past four quarters and above the average since 1994.


S&P 500 futures fell 2.6 point and were about even with fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 18 points and Nasdaq 100 futures fell 3.25 points.


The S&P 500 has risen for nine of the past 10 sessions, putting it above 1,500, a level market technicians call an inflection point that will determine the overall direction in the near term. The benchmark index is on track to post its best monthly performance since October 2011 as investors poured $55 billion in new cash into stock mutual funds and exchange-traded funds in January, the biggest monthly inflow on record.


The Dow Jones industrial average has been flirting with 14,000, a level it hasn't seen since October 2007. Many analysts have said markets may need to take a pause at current levels.


The Federal Reserve concludes a two-day meeting on Wednesday, and while the central bank is expected to keep monetary policy on a steady path, intensive debates continue behind the scenes over when the controversial bond-buying program should be curtailed.


In company news, Chesapeake Energy Corp rose 10.5 percent to $20.95 in premarket trading a day after saying Aubrey McClendon would step down as chief executive after a year in which a series of Reuters investigations triggered civil and criminal probes of the second-largest U.S. natural gas producer.


U.S. stocks advanced on Tuesday, led by defensive sectors, in a sign the cash piles recently moving into the market are being put to use by cautious investors to pick up more gains.


(Editing by Chizu Nomiyama and Nick Zieminski)



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Severe weather rakes US midsection






JACKSON, Miss. – A large storm system packing high winds, rain and some possible tornadoes tore across several states in the South and central U.S. on Wednesday, blacking out power to thousands, downing trees and damaging homes.


One death was reported when a large tree blew down on a shed in Nashville, Tenn., where a man was sheltering, police told Nashville broadcaster WTVF-TV. Authorities did not immediately release further details when contacted by The Associated Press.






In Arkansas, another person was reported injured by lightning in Arkansas during the storm’s eastward trek. The severe weather ushered in a cold front that was headed toward the Eastern seaboard as it dumped rain over a wide area.


The rapidly changing conditions created a risk of tornadoes in the nation’s midsection and South. The National Weather Service’s Storm Prediction Center in Norman, Okla., said the threat was greatest in recent hours in northeast Texas, northern Louisiana, northwest Mississippi, southeast Missouri and much of Arkansas.


The center said it was investigating reports of at least four possible tornadoes in states including Arkansas and Mississippi. Hail ranging up to nearly golf-ball size was also reported in some areas and barns and other buildings collapsed or were damaged, the center added.


Thousands were reported without power in Tennessee, where tornado warnings and flash flood warnings were issued for several counties and a tractor-trailer truck was blown over by high winds.


Entergy Arkansas Inc. reported at least 9,000 power outages in several communities around Arkansas at the height of the storm, including in and around Little Rock.


Power lines fell, trees were toppled and some homes suffered damage to rooftops around the state, reports indicated. The weather service said suspected straight-line winds of up to 80 mph were reported in Arkansas late Tuesday night along with flooding in low-lying areas of Jonesboro in Arkansas’ northeastern corner.


Police in the Arkansas community of Monticello reported a person was injured by lightning late Tuesday but the injury was not life-threatening.


The Mississippi Emergency Management Agency urged residents to be on guard for severe thunderstorms, high winds and possible tornadoes Wednesday.


Earlier this week, a large swath of the Midwest and South bathed in unseasonably balmy temperatures that reached the high 70s in some areas.


The temperature in the central Missouri college town of Columbia reached 77 degrees on Monday, a record for January, and students exchanged their winter coats for shorts and flip-flops as freezing rain gave way to spring-like conditions. Foul weather made a quick return, however, with a Tuesday downpour that flooded some streets near the University of Missouri campus. Early morning snow was expected Wednesday.


Chicago residents also have been whiplashed by recent weather extremes. Workers who suffered through subzero temperatures and brutal wind chills a week ago strolled through downtown without coats Tuesday as temperatures soared into the mid-60s.


Carol Krueger, who lives in the Chicago suburb of North Hoffman Estates, noted that just a few days ago she was struggling to drive through blowing snow. All she needed Tuesday was a light jean jacket, although by Thursday temperatures were barely expected to reach 20 degrees.


“It’s bizarre, it’s scary,” Krueger said of the swiftly changing weather.


On Monday, the National Weather Service predicted a “moderate” risk of severe weather more than 24 hours out, only the fifth time it had done so in January in the past 15 years, said Gregory Carbin, the director of the Storm Prediction Center.


A system pulling warm weather from the Gulf of Mexico was colliding with a cold front moving in from the west, creating volatility.


The nation has had its longest break between tornado fatalities since detailed tornado records began being kept in 1950, according to the Storm Prediction Center and National Climatic Data Center. The last one was June 24, when a person was killed in a home in Highlands County, Fla. That was 220 days ago as of Tuesday.


The last day with multiple fatalities was June 4, when three people were killed in a mobile home in Scott County, Mo.



Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.



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Stock futures point to modest losses, Ford drops


NEW YORK (Reuters) - Stock index futures pointed to slight losses at the open on Tuesday as investors took profits following an extended rally and looked for confirmation the gains could continue.


Equities have been on a tear lately, with the S&P 500 ending an eight-day streak of gains in Monday's session. The index remained above 1,500, suggesting there was still support for a market that has been hovering around five-year highs.


"We need to slow down and digest the huge move we've had, so it makes sense futures are weak this morning, though it is also encouraging that we're still strong enough to stay above 1,500," said Christian Wagner, chief executive officer at Longview Capital Management in Wilmington, Delaware.


The gains have largely come on a strong start to earnings season and that trend continued on Tuesday, with positive earnings from Ford Motor Co and Pfizer Inc .


Both companies reported profits that topped expectations, though Ford also forecast a wider loss in its European segment. After climbing more than 4 percent, it turned lower to fall 1.7 percent to $13.54 before the bell.


Pfizer, a Dow component, rose 0.7 percent to $27.03 after its results. Eli Lilly and Co , another pharmaceutical company, was flat after reporting adjusted fourth-quarter earnings and revenue that beat expectations.


Yahoo Inc rose 2.7 percent to $20.86 in premarket trading a day after reporting adjusted earnings that beat expectations and forecasting a rise in annual revenue.


"We've had some cross-currents on earnings, with both strength and weakness, and that's another reason we need some affirmation the upside will continue from here," said Wagner.


Thomson Reuters data showed that of the 150 companies in the S&P 500 that have reported earnings so far, 67.3 percent have beaten analysts' expectations, which is a higher proportion than over the past four quarters and above the average since 1994.


S&P 500 futures fell 3.9 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 20 points and Nasdaq 100 futures slid 5.25 points.


The Federal Reserve's Open Market Committee begins two days of meetings on interest rates. Traders speculated more solid U.S. growth might see the Fed pull back on its aggressive easing stimulus, which has played a key role in fuelling an equity market rally since the second half of last year.


In a sign of the improved view towards equities, investors poured $55 billion in new cash into stock mutual funds and exchange-traded funds in January, the biggest monthly inflow on record, research provider TrimTabs Investment Research said.


Home prices rose 0.6 percent in November, as expected, according to the S&P Case/Shiller Home Price Index. The news comes a day after data showed an unexpected drop in December pending home sales.


Futures were little impacted by the Case/Shiller report. January consumer confidence is due at 10 a.m. and is seen dipping to 64 from 65.1 in the previous month.


U.S. stocks edged modestly lower on Monday. However, Caterpillar Inc rallied after results, limiting losses in the Dow, while a rebound in shares of Apple Inc kept the Nasdaq in positive territory.


(Editing by Kenneth Barry and Nick Zieminski)



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And Now, Back to Charles (Barkley) with the Weather






We realize there’s only so much time one can spend in a day watching new trailers, viral video clips, and shaky cell phone footage of people arguing on live television. This is why every day The Atlantic Wire highlights the videos that truly earn your five minutes (or less) of attention. Today:


RELATED: This Is How You Super Moonwalk; Old People Show Us the Dubstep






So, Charles Barkley is a semi-wonderful, candid announcer, and we fully respect his NBA career. A gifted meteorologist, however, Barkley is not — but that may be a good thing:


RELATED: ‘Morgan Freeman’ Reads ’50 Shades’; The Science of Orgasms


RELATED: Movie and Television Characters Need a Lesson in Talking Trash


Bless Manti Te’o and his silly story. Bless Katie Couric for devoting time to ask the Notre Dame football star about his silly story. But most of all, bless whoever put together this catchy and entertaining auto-tuning of the entire boondoggle:


RELATED: Let’s Welcome Back Hockey with This ESPN Commercial


RELATED: Yes, Someone Turned Their Dead Cat Into a Helicopter


Australia, you are scary:


And finally, this is a baby raccoon who has learned to give people high-fives. Send him your way, because you, you rock star, just made it through a Monday: 


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Stock futures point to gains after data and Caterpillar


NEW YORK (Reuters) - Stock index futures pointed to a modestly higher open on Monday following strong data and results from Caterpillar, though gains were slight after a rally that took the S&P 500 above 1,500 for the first time in more than five years.


A strong start to the earnings season has boosted equities, with major averages rising for four straight weeks. The S&P has gained for eight straight days, its longest winning streak in eight years.


Caterpillar Inc rose 2.5 percent to $98 in premarket trading after the Dow component reported adjusted fourth-quarter earnings that beat expectations, though revenue was slightly below forecasts. The heavy machinery maker also said it remained cautious on the economy despite recent improvements.


"You can't find more of a global bellwhether than Cat, and people are pleased with the number, which suggests there could be less concern about slowing growth in China after this," said Wayne Kaufman, chief market analyst at John Thomas Financial in New York.


Thomson Reuters data through Friday showed that of the 147 S&P 500 companies that have reported earnings so far, 68 percent exceeded expectations. Since 1994, 62 percent of companies have topped expectations, while the average over the past four quarters stands at 65 percent.


Yahoo Inc reports after the closing bell, and could face heightened expectations following strong results at Google Inc last week.


S&P 500 futures rose 2 points and were about even with fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 22 points and Nasdaq 100 futures rose 2 points.


The S&P 500 closed at its highest since December 10, 2007, and the Dow ended at its highest since October 31, 2007. Over the past four weeks, the S&P has jumped 7.2 percent, suggesting markets may be vulnerable to a pullback if news disappoints.


Durable goods jumped 4.6 percent in December, a pace that far outstripped expectations for a rise of 1.8 percent.


"We continue to have a parade of better-than-expected economic reports. All-in-all it's a good picture. I think there's a good chance we've reached a point of recognition where people don't think the economy will crater," Kaufman said.


In addition to earnings, equities have also risen on an agreement in Washington to extend the government's borrowing power. On Monday, Fitch Ratings said that agreement removed the near-term risk to the country's 'AAA' rating.


Previously, the agency said the lack of an agreement would prompt a review of the sovereign rating.


In company news, Keryx Biopharmaceuticals Inc said a late-stage trial of its experimental kidney disease drug met the main study goal of reducing phosphate levels in blood, sending shares up 41 percent to $4.84 in premarket trading.


Bargain hunters may look to Apple Inc in the first session after the tech giant lost its coveted title as the largest U.S. company by market capitalization to Exxon Mobil Corp . On Friday, Apple's market cap fell to $413 billion, down roughly $250 billion from its September peak. Apple's fall is about equal to the entire value of Google Inc .


"Apple is pretty attractive right now, so you may see an opportunity here," said Chris Bertelsen, who helps oversee $1.5 billion as chief investment officer of Global Financial Private Capital in Sarasota, Florida. "Those who think the stock is dead have made a big mistake."


U.S. stocks rose on Friday, lifted by strong results from such companies as Procter & Gamble . The rise put the S&P 500 about 4.1 percent away from its all-time closing high of 1,565.15 on October 9, 2007.


(Editing by W Simon and Kenneth Barry)



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Space Junk Menace: How to Deal with Orbital Debris






The saga of what steps that must be taken to deal with the evolving threat of Earth-circling orbital debris is a work in progress.  This menacing problem — and the possible cleanup solutions — is international in scope.


Space junk is an assortment of objects in Earth orbit that is a mix of everything from spent rocket stages, derelict satellites, chunks of busted up spacecraft to paint chips, springs and bolts. A satellite crash in February 2009, for example, marked the first accidental hypervelocity crash between two intact artificial satellites in Earth orbit. That cosmic crash created significant debris — a worrisome amount of leftover bits and pieces.






Against this backdrop of untidiness in space and the global worry among spacefaring countries it causes, experts continue to tackle the issue of exactly what to do about orbital debris. A number of rules have been pondered to address the space debris problem, from regulations that attempt to cut down on the shedding of new debris to better tracking of the human-made refuge, as well as scavenging concepts including fishing nets, lasers and garbage scows.


But how to best characterize the orbital debris dilemma, and its future, also stirs up debate and heated dialogue.


Point of no return


The clutter in Earth orbit is a situation that will continue to worsen, according to Marshall Kaplan, founder and principal of Launchspace in Bethesda, Md.


“The problem is that we’ve already fallen off that cliff,” Kaplan told SPACE.com. “That’s the reality of it and people don’t want to admit that reality.” [Photos of Space Junk & Cleanup Ideas]


Spending millions of dollars to retrieve space junk isn’t effective, Kaplan said.


Now, ways to better track and identify space debris are being devised. Low-Earth orbit is where the main problem is — from roughly 435 miles (700 kilometers) to about 745 miles (1,200 km), he said.


“It’s a serious, serious challenge,” Kaplan said. “This is not a U.S. problem … it’s everybody’s problem. And most of the people that produced the debris, the serious offenders, like Russia, China, and the United States, are not going to spend that kind of money. It’s just not a good investment.”


While the creation of orbiting junk continues rise with each rocket launch, there is no market for tackling the issue directly, Kaplan said.


“We’ve reached the point of no return. The debris will continue to get worse in terms of collision threats … even if not another satellite were launched, the problem will continue to get worse,” he added.


Speeding debris crashes


Kaplan said the frequency of collisions between active satellites and debris pieces is going to increase.


The real question, Kaplan said, is not what everyone is going to do about debris. Rather, the true question is what needs to be done about active satellites in harm’s way of speeding riffraff.


“My prediction is that we are going to evacuate the areas of high debris density. It’s just too dangerous to operate there. We’re going to need to reinvent how we use space,” Kaplan said. [Worst Space Debris Events of All Time]


In the case of large national security satellite assets, one option may be to distribute smaller satellites in lower altitudes, Kaplan added. These multiple layers of spacecraft would collectively create virtual products, such as imagery and other intelligence data. The users of this information would receive the same kind of data, but from a different satellite constellation, he said.


As one step toward that future, Kaplan is working with multiple universities to help establish new research centers on space debris and a next-generation national security space architecture.


Environmental stability


Darren McKnight, technical director for Integrity Applications Incorporated, headquartered in Chantilly, Va., suggested that the current debate on active debris removal and the evolution of the debris environment is still developing.


McKnight said that, currently, policymakers and engineers examine environmental stability, preventing the cascading of derelict collisions from increasing exponentially over the next century. This scenario, known as the “Kessler Syndrome,” is the primary metric to judge how many derelicts need to be removed and when they should be removed.


The Kessler Syndrome is one in which the density of objects in low Earth orbit is high enough that collisions between objects could cause a cascade. Each collision generates space debris, which increases the likelihood of further collisions. [Solar Sails Could Sweep Up Space Junk (Video)]


“The overall issue is that as we continue to consider active debris removal options, I question whether or not environment stability is the only metric to be tracking,” McKnight told SPACE.com.


Lethal space debris


McKnight, along with company colleague Frank Di Pentino, propose that the probability of satellite failure from impact from non-trackable, yet lethal debris fragments — in the 5 millimeter to 10 centimeter size range — is a more appropriate metric. The reason is because it directly reflects harmful effects of space debris on space operations. Furthermore, these effects are likely to occur much sooner than observable manifestations of the cascading effect.


McKnight and Di Pentino’s research suggests that any mitigation scheme, be it just-in-time collision avoidance, active debris removal or other methods, cannot rely on a model that does not account for projected add rates, new launches on other factors. They contend that collision rate is “not a sufficient metric” for assessing operational risk.


Wanted: A long-term plan


There is much work to do regarding orbital debris, said Donald Kessler, chair of the 2011 National Research Council (NRC) report “Limiting Future Collision Risk to Spacecraft: An Assessment of NASA’s Meteoroid and Orbital Debris Programs.” He is a retired head of NASA’s Orbital Debris Program Office and is a space debris and meteoroid consultant in Asheville, N.C.


Kessler said that the NRC committee that produced the report strongly felt that what was missing from the programs was a long-term strategic plan — one that outlined a path that eventually determines how  manage future space operations in a way that preserves the environment.


“However, this is not simply a NASA issue … it is an international issue, and will require a carefully coordinated effort,” Kessler said.


Can the space junk problem be solved?


NASA and the international community, Kessler said, “have already done enough research to know that the environment will continue to get worse if we continue on the same path … the only environmental issue to be resolved is how quickly the environment in various regions deteriorates.”


The international community, through the Inter-Agency Space Debris Coordination Committee (IADC), has been very active in understanding the current environmental trends, sharing information and establishing internationally recognized mitigation requirements.


However, Kessler said that current mitigation practices are insufficient, even with 100 percent compliance. Missing in action is a plan to determine what do about the predicted worsening space environment, he said — that is, how to stop or reverse the trend of increased debris resulting from increased collisions.


Sustainable environment


Kessler added that the fundamental issues to be resolved are:


  • How do we minimize the possibility of future high-velocity collisions between spacecraft and upper stage rockets?

  • If we cannot eliminate that prospect, how do we clean up after a collision?

“Removal from orbit, collision avoidance, satellite servicing and repair, satellite recycling in orbit, debris storage locations, change to using a ‘stable plane’ at higher altitudes especially in Geosynchronous Earth Orbit (GEO) … are all possibilities,” Kessler added. “Some are mutually exclusive and may not be appropriate at all altitudes, while others could combine to be more effective.”


Still to be sorted out is what type of legal structure might be needed in order to implement any plan, Kessler said.


“I believe it is time that the international community takes a serious look at the future of space operations,” Kessler said. “There’s need to begin a process to answer these questions and determine which path will most effectively provide a sustainable environment for spacecraft in Earth orbit.”


Leonard David has been reporting on the space industry for more than five decades. He is former director of research for the National Commission on Space and a past editor-in-chief of the National Space Society’s Ad Astra and Space World magazines. He has written for SPACE.com since 1999.


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Wall Street Week Ahead: Bears hibernate as stocks near record highs

NEW YORK (Reuters) - Stocks have been on a tear in January, moving major indexes within striking distance of all-time highs. The bearish case is a difficult one to make right now.


Earnings have exceeded expectations, the housing and labor markets have strengthened, lawmakers in Washington no longer seem to be the roadblock that they were for most of 2012, and money has returned to stock funds again.


The Standard & Poor's 500 Index <.spx> has gained 5.4 percent this year and closed above 1,500 - climbing to the spot where Wall Street strategists expected it to be by mid-year. The Dow Jones industrial average <.dji> is 2.2 percent away from all-time highs reached in October 2007. The Dow ended Friday's session at 13,895.98, its highest close since October 31, 2007.


The S&P has risen for four straight weeks and eight consecutive sessions, the longest streak of days since 2004. On Friday, the benchmark S&P 500 ended at 1,502.96 - its first close above 1,500 in more than five years.


"Once we break above a resistance level at 1,510, we dramatically increase the probability that we break the highs of 2007," said Walter Zimmermann, technical analyst at United-ICAP, in Jersey City, New Jersey. "That may be the start of a rise that could take equities near 1,800 within the next few years."


The most recent Reuters poll of Wall Street strategists estimated the benchmark index would rise to 1,550 by year-end, a target that is 3.1 percent away from current levels. That would put the S&P 500 a stone's throw from the index's all-time intraday high of 1,576.09 reached on October 11, 2007.


The new year has brought a sharp increase in flows into U.S. equity mutual funds, and that has helped stocks rack up four straight weeks of gains, with strength in big- and small-caps alike.


That's not to say there aren't concerns. Economic growth has been steady, but not as strong as many had hoped. The household unemployment rate remains high at 7.8 percent. And more than 75 percent of the stocks in the S&P 500 are above their 26-week highs, suggesting the buying has come too far, too fast.


MUTUAL FUND INVESTORS COME BACK


All 10 S&P 500 industry sectors are higher in 2013, in part because of new money flowing into equity funds. Investors in U.S.-based funds committed $3.66 billion to stock mutual funds in the latest week, the third straight week of big gains for the funds, data from Thomson Reuters' Lipper service showed on Thursday.


Energy shares <.5sp10> lead the way with a gain of 6.6 percent, followed by industrials <.5sp20>, up 6.3 percent. Telecom <.5sp50>, a defensive play that underperforms in periods of growth, is the weakest sector - up 0.1 percent for the year.


More than 350 stocks hit new highs on Friday alone on the New York Stock Exchange. The Dow Jones Transportation Average <.djt> recently climbed to an all-time high, with stocks in this sector and other economic bellwethers posting strong gains almost daily.


"If you peel back the onion a little bit, you start to look at companies like Precision Castparts , Honeywell , 3M Co and Illinois Tool Works - these are big, broad-based industrial companies in the U.S. and they are all hitting new highs, and doing very well. That is the real story," said Mike Binger, portfolio manager at Gradient Investments, in Shoreview, Minnesota.


The gains have run across asset sizes as well. The S&P small-cap index <.spcy> has jumped 6.7 percent and the S&P mid-cap index <.mid> has shot up 7.5 percent so far this year.


Exchange-traded funds have seen year-to-date inflows of $15.6 billion, with fairly even flows across the small-, mid- and large-cap categories, according to Nicholas Colas, chief market strategist at the ConvergEx Group, in New York.


"Investors aren't really differentiating among asset sizes. They just want broad equity exposure," Colas said.


The market has shown resilience to weak news. On Thursday, the S&P 500 held steady despite a 12 percent slide in shares of Apple after the iPhone and iPad maker's results. The tech giant is heavily weighted in both the S&P 500 and Nasdaq 100 <.ndx> and in the past, its drop has suffocated stocks' broader gains.


JOBS DATA MAY TEST THE RALLY


In the last few days, the ratio of stocks hitting new highs versus those hitting new lows on a daily basis has started to diminish - a potential sign that the rally is narrowing to fewer names - and could be running out of gas.


Investors have also cited sentiment surveys that indicate high levels of bullishness among newsletter writers, a contrarian indicator, and momentum indicators are starting to also suggest the rally has perhaps come too far.


The market's resilience could be tested next week with Friday's release of the January non-farm payrolls report. About 155,000 jobs are seen being added in the month and the unemployment rate is expected to hold steady at 7.8 percent.


"Staying over 1,500 sends up a flag of profit taking," said Jerry Harris, president of asset management at Sterne Agee, in Birmingham, Alabama. "Since recent jobless claims have made us optimistic on payrolls, if that doesn't come through, it will be a real risk to the rally."


A number of marquee names will report earnings next week, including bellwether companies such as Caterpillar Inc , Amazon.com Inc , Ford Motor Co and Pfizer Inc .


On a historic basis, valuations remain relatively low - the S&P 500's current price-to-earnings ratio sits at 15.66, which is just a tad above the historic level of 15.


Worries about the U.S. stock market's recent strength do not mean the market is in a bubble. Investors clearly don't feel that way at the moment.


"We're seeing more interest in equities overall, and a lot of flows from bonds into stocks," said Paul Zemsky, who helps oversee $445 billion as the New York-based head of asset allocation at ING Investment Management. "We've been increasing our exposure to risky assets."


For the week, the Dow climbed 1.8 percent, the S&P 500 rose 1.1 percent and the Nasdaq advanced 0.5 percent.


(Reporting by Ryan Vlastelica; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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Wall Street Week Ahead: Bears hibernate as stocks near record highs

NEW YORK (Reuters) - Stocks have been on a tear in January, moving major indexes within striking distance of all-time highs. The bearish case is a difficult one to make right now.


Earnings have exceeded expectations, the housing and labor markets have strengthened, lawmakers in Washington no longer seem to be the roadblock that they were for most of 2012, and money has returned to stock funds again.


The Standard & Poor's 500 Index <.spx> has gained 5.4 percent this year and closed above 1,500 - climbing to the spot where Wall Street strategists expected it to be by mid-year. The Dow Jones industrial average <.dji> is 2.2 percent away from all-time highs reached in October 2007. The Dow ended Friday's session at 13,895.98, its highest close since October 31, 2007.


The S&P has risen for four straight weeks and eight consecutive sessions, the longest streak of days since 2004. On Friday, the benchmark S&P 500 ended at 1,502.96 - its first close above 1,500 in more than five years.


"Once we break above a resistance level at 1,510, we dramatically increase the probability that we break the highs of 2007," said Walter Zimmermann, technical analyst at United-ICAP, in Jersey City, New Jersey. "That may be the start of a rise that could take equities near 1,800 within the next few years."


The most recent Reuters poll of Wall Street strategists estimated the benchmark index would rise to 1,550 by year-end, a target that is 3.1 percent away from current levels. That would put the S&P 500 a stone's throw from the index's all-time intraday high of 1,576.09 reached on October 11, 2007.


The new year has brought a sharp increase in flows into U.S. equity mutual funds, and that has helped stocks rack up four straight weeks of gains, with strength in big- and small-caps alike.


That's not to say there aren't concerns. Economic growth has been steady, but not as strong as many had hoped. The household unemployment rate remains high at 7.8 percent. And more than 75 percent of the stocks in the S&P 500 are above their 26-week highs, suggesting the buying has come too far, too fast.


MUTUAL FUND INVESTORS COME BACK


All 10 S&P 500 industry sectors are higher in 2013, in part because of new money flowing into equity funds. Investors in U.S.-based funds committed $3.66 billion to stock mutual funds in the latest week, the third straight week of big gains for the funds, data from Thomson Reuters' Lipper service showed on Thursday.


Energy shares <.5sp10> lead the way with a gain of 6.6 percent, followed by industrials <.5sp20>, up 6.3 percent. Telecom <.5sp50>, a defensive play that underperforms in periods of growth, is the weakest sector - up 0.1 percent for the year.


More than 350 stocks hit new highs on Friday alone on the New York Stock Exchange. The Dow Jones Transportation Average <.djt> recently climbed to an all-time high, with stocks in this sector and other economic bellwethers posting strong gains almost daily.


"If you peel back the onion a little bit, you start to look at companies like Precision Castparts , Honeywell , 3M Co and Illinois Tool Works - these are big, broad-based industrial companies in the U.S. and they are all hitting new highs, and doing very well. That is the real story," said Mike Binger, portfolio manager at Gradient Investments, in Shoreview, Minnesota.


The gains have run across asset sizes as well. The S&P small-cap index <.spcy> has jumped 6.7 percent and the S&P mid-cap index <.mid> has shot up 7.5 percent so far this year.


Exchange-traded funds have seen year-to-date inflows of $15.6 billion, with fairly even flows across the small-, mid- and large-cap categories, according to Nicholas Colas, chief market strategist at the ConvergEx Group, in New York.


"Investors aren't really differentiating among asset sizes. They just want broad equity exposure," Colas said.


The market has shown resilience to weak news. On Thursday, the S&P 500 held steady despite a 12 percent slide in shares of Apple after the iPhone and iPad maker's results. The tech giant is heavily weighted in both the S&P 500 and Nasdaq 100 <.ndx> and in the past, its drop has suffocated stocks' broader gains.


JOBS DATA MAY TEST THE RALLY


In the last few days, the ratio of stocks hitting new highs versus those hitting new lows on a daily basis has started to diminish - a potential sign that the rally is narrowing to fewer names - and could be running out of gas.


Investors have also cited sentiment surveys that indicate high levels of bullishness among newsletter writers, a contrarian indicator, and momentum indicators are starting to also suggest the rally has perhaps come too far.


The market's resilience could be tested next week with Friday's release of the January non-farm payrolls report. About 155,000 jobs are seen being added in the month and the unemployment rate is expected to hold steady at 7.8 percent.


"Staying over 1,500 sends up a flag of profit taking," said Jerry Harris, president of asset management at Sterne Agee, in Birmingham, Alabama. "Since recent jobless claims have made us optimistic on payrolls, if that doesn't come through, it will be a real risk to the rally."


A number of marquee names will report earnings next week, including bellwether companies such as Caterpillar Inc , Amazon.com Inc , Ford Motor Co and Pfizer Inc .


On a historic basis, valuations remain relatively low - the S&P 500's current price-to-earnings ratio sits at 15.66, which is just a tad above the historic level of 15.


Worries about the U.S. stock market's recent strength do not mean the market is in a bubble. Investors clearly don't feel that way at the moment.


"We're seeing more interest in equities overall, and a lot of flows from bonds into stocks," said Paul Zemsky, who helps oversee $445 billion as the New York-based head of asset allocation at ING Investment Management. "We've been increasing our exposure to risky assets."


For the week, the Dow climbed 1.8 percent, the S&P 500 rose 1.1 percent and the Nasdaq advanced 0.5 percent.


(Reporting by Ryan Vlastelica; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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