Morsi hails charter as "new dawn for Egypt", targets economy

CAIRO: Egyptian President Mohamed Morsi on Wednesday hailed an Islamist-backed charter he pushed through despite fierce opposition protests as "a new dawn" for his country, and said he would now tackle a teetering economy.

In a televised national address, Morsi said he would reshuffle his government and renewed an offer of dialogue with the largely secular opposition.

But while "mistakes on both sides" occurred as the new charter was drafted and put to a referendum that gave it 64-percent voter support, he remained defiant over the "difficult" decisions he made.

"I only took decisions for God and in the interests of the nation," said Morsi, who hails from Egypt's Muslim Brotherhood.

The result, he contended, holding up the constitution, would cap nearly two years of turmoil since the overthrow of Hosni Mubarak in February 2011, and allow Egypt to enter "an era with greater security and stability."

It was "a new dawn for Egypt," he said.

The opposition, however, has already dismissed the new charter and said it would fight on, challenging its legitimacy and positioning itself for legislative elections that are due within the next two months.

The head of the opposition National Salvation Front, Nobel peace prize laureate Mohamed ElBaradei tweeted that the constitution was "void" because it conflicts with international law in regard to "freedom of belief, expression, etc".

The Front sees the charter as a possible tool to introduce strict Islamic sharia law by weakening human rights, the rights of women and the independence of the judiciary.

It also stressed that just one in three of Egypt's 52 million voters took part in the referendum.

Protests against the charter, and against a decree -- later rescinded -- giving Morsi near-absolute powers, have taken place since late November. Some of them turned violent, including clashes on December 5 that killed eight people and wounded hundreds.

The likelihood of prolonged "elevated" political conflict despite the adoption of the constitution prompted the ratings agency Standard and Poor's this week to knock Egypt's long-term credit rating down a peg, to 'B-'.

A $4.8 billion loan the International Monetary Fund put on pause this month has also made investors anxious, and raised the risk of Egypt's currency going into a nose-dive as the central bank burns through its foreign reserves.

Authorities have already banned travellers from taking out or bringing in more than $10,000 each.

Tourism, a mainstay of the economy, has also not recovered from a 32 percent decline that happened when the early 2011 revolution erupted to oust Mubarak.

Morsi said in his speech that "I will deploy all my efforts to boost the Egyptian economy, which faces enormous challenges but has also big opportunities for growth."

He was in consultations with Prime Minister Hisham Qandil on the ministerial reshuffle as part of "the changes necessary for this task."

Morsi argued that the new constitution will allow Egypt to enter "an era with greater security and stability" and vowed to promote "growth, progress and social justice."

The United States, which gives $1.3 billion a year to Egypt's influential military, has called on Morsi to work to "bridge divisions" with the largely secular opposition.

"We have consistently supported the principle that democracy requires much more than simple majority rule," acting State Department spokesman Patrick Ventrell said in a statement on Tuesday.

-AFP/ac

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New Corvette teased and leaked ahead of January unveil

Chevrolet released a camouflaged virtual prototype of the seventh generation Corvette in Gran Turismo 5.

(Credit:
GM)

At the Detroit auto show next month, Chevrolet will unveil the 2014 Corvette, the seventh generation of the legendary American supercar. GM's own media releases ahead of the launch reveal a modern, high-tech
car that should compete with the best from Europe. At the same time, it appears Chevy addressed a long-time Corvette issue, cabin quality.

To date, the most reliable information available concerns the new Corvette's engine. GM released a presentation detailing construction, testing, and specifications for this new powerplant. The engine, designated LT1, replaces the outgoing LS3.

Although it retains the 6.2-liter displacement of the LS3, the new LT1 engine realizes a 20 horsepower and 26 pound-feet torque increase due to a new direct injection fuel system and compression of 11.5:1. Chevy estimates total output at 450 horsepower and 450 pound-feet of torque. Continuous variable valve timing, similar to that used on the LS3, helps efficiency.

Chevy expects the new Corvette to deliver 26 mpg on the highway due to the engines Active Fuel Management system, which reduces the number of pistons in use to half of the eight available during certain driving conditions, such as highway cruising.

Chevy released a number of videos teasing the development of the new Corvette on its YouTube channel. The second video, titled Calibration, reveals some new elements in the instrument cluster, most notably use of LCDs to show driver-relevant information. However, rather than going with a full LCD panel, it looks like Chevrolet retained analog gauges for speedometer and tachometer.

One of the Corvette videos shows extensive leather working, suggesting that Chevrolet will introduce a better quality cabin than in years past.

Last month, Chevrolet partnered with Sony to offer a camouflaged prototype of the new Corvette in Gran Turismo 5, giving gamers an official look at the shape of the upcoming car. In the last few days, sketches of the new Corvette leaked to the Internet, confirming and elucidating details from the game vehicle.

Although retaining the same two-seater front-engine layout, the Corvette's profile looks more like a grand tourer, with a higher fastback design. The side view shows aggressive front fender vents.

The rear of the car shows wide fenders bookending a hatchback that gets narrower towards the back, similar to the classic 1963 Sting Ray. The squarish taillights seem to borrow their shape from the Camaro. Underneath, it looks like Chevy developed a modern, aggressive diffuser to help airflow. Four exhaust pipes meet at the center rear of the car.

The new Corvette will face stiff competition from the SRT Viper, its rival among American supercars. Chevrolet will unveil this new model, officially the Corvette C7, in Detroit on January 13.

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Messy, dangerous Christmas weather turns deadly

Updated 2:05 p.m. EST

NEW ORLEANS Freezing rain and sleet made for a sloppy Christmas morning trek in parts of the nation's midsection on Tuesday, while residents along the Gulf Coast braced for thunderstorms, high winds and tornadoes.

Icy roads already were blamed for a 21-vehicle pileup in Oklahoma, where authorities warned would-be travelers to stay home. Fog blanketed highways, including arteries in the Atlanta area where motorists slowed as a precaution. In New Mexico, drivers across the eastern plains had to fight through snow, ice and low visibility.

At least two tornadoes were reported in Texas, though only one building was damaged, according to the National Weather Service.

Authorities say a powerful storm moving across the southeast toppled a tree onto a pickup truck in the Houston area, killing the driver. Harris County Sheriff's Deputy Thomas Gilliland says the tree fell onto the truck around 9:40 a.m. local time Tuesday.

More than 150 flights nationwide were canceled by midday, according to the flight tracker FlightAware.com. More than half were canceled by American Airlines and its regional affiliate, American Eagle.

American is headquartered and has its biggest hub at Dallas/Fort Worth International Airport.

Meanwhile, a blizzard watch was posted for parts of Indiana and western Kentucky for storms expected to unfold Tuesday amid predictions of up to 4 to 7 inches of snow in coming hours. Much of Oklahoma and Arkansas braced under a winter storm warning of an early mix of rain and sleet forecast to eventually turn to snow.

Some mountainous areas of Arkansas' Ozark Mountains could get up to 10 inches of snow, which would make travel "very hazardous or impossible" in the northern tier of the state from near whiteout conditions, the National Weather Service said.

Elsewhere, areas of east Texas and Louisiana braced for possible thunderstorms as forecasters eyed a developing storm front expected to spread across the Gulf Coast to the Florida Panhandle.

The holiday may conjure visions of snow and ice, but twisters this time of year are not unheard of. Ten storm systems in the last 50 years have spawned at least one Christmastime tornado with winds of 113 mph or more in the South, said Chris Vaccaro, a National Weather Service spokesman in Washington, via email.

The most lethal were the storms of Dec. 24-26, 1982, when 29 tornadoes in Oklahoma, Missouri, Arkansas, Tennessee and Mississippi killed three people and injured 32; and those of Dec. 24-25, 1964, when two people were killed and about 30 people injured by 14 tornadoes in seven states.

Quarter-sized hail reported early Tuesday in western Louisiana was expected to be just the start of a severe weather threat on the Gulf Coast, said meteorologist Mike Efferson at the weather service office in Slidell, La. Tornado watches were in effect across southeastern Texas and southern Louisiana.

Storms along the Gulf Coast could bring winds up to 70 mph, heavy rain, more large hail and dangerous lightning in Louisiana and Mississippi, Efferson said. Furthermore, warm, moist air colliding with a cold front could produce dangerous straight-line winds.

The storm was moving quickly and was expected to intensify as it headed into northeast Louisiana and Mississippi into the late afternoon and early evening, said Bill Adams at the weather service's Shreveport, La., office.

In Mississippi, Gov. Phil Bryant urged residents to have a plan for any severe weather.

"It only takes a few minutes, and it will help everyone have a safe Christmas," Bryant said.

In Alabama, the director of the Emergency Management Agency, Art Faulkner, said he has briefed both local officials and Gov. Robert Bentley on plans for dealing with a possible outbreak of storms.

No day is good for severe weather, but Faulkner said Christmas adds extra challenges because people are visiting unfamiliar areas and often thinking more of snow than possible twisters.

In California, after a brief reprieve across the northern half of the state on Monday, wet weather was expected to make another appearance on Christmas Day. Flooding and snarled holiday traffic were expected in Southern California.

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Gunman Killed Firemen With Bushmaster, Left Note

A convicted killer, who shot dead two firefighters with a Bushmaster assault rifle after leading them into an ambush when they responded to a house fire he set in Western New York, left behind a typewritten note saying he wanted to "do what I like doing best, killing people," police said.

William Spengler, 62, set his home and a car on fire early Monday morning with the intention of setting a trap to kill firefighters and to see "how much of the neighborhood I can burn down," according to the note he wrote and which police found at the scene. The note did not give a reason for his actions.

Spengler, who served 18 years in prison for beating his 92-year-old grandmother to death with a hammer in 1981, hid Monday morning in a small ditch beside a tree overlooking the sleepy lakeside street in Webster, N.Y., where he lived with his sister, police said today in a news conference.

That woman, Cheryl Spengler, 67, remains missing and may also have been killed, police said.

As firefighters arrived on the scene after a 5:30 a.m. 911 call on the morning of Christmas Eve, Spengler opened fire on them with the Bushmaster, the same semi-automatic, military-style weapon used in the Dec. 14 rampage killing of 20 children in Newtown, Conn.

"This was a clear ambush on first responders… Spengler had armed himself heavily and taken area of cover," said Gerald Pickering, the chief of the Webster Police Department.

Armed with a Smith & Wesson .38 caliber revolver, a Mossman 12-gauge shotgun, and the Bushmaster, Spengler killed two firefighters, and injured two more as well as an off-duty police officer at the scene.

As a convicted felon, Spengler could not legally own a firearm and police are investigating how he obtained the weapons.

One firefighter tried to take cover in his fire engine and was killed with a gunshot through the windshield, Pickering said.

Responding police engaged in a gunfight with Spengler, who ultimately died, likely by a self-inflicted gunshot wound to the head.

As police engaged the gunman, more houses along Lake Ontario were engulfed, ultimately razing seven of them.

SWAT teams were forced to evacuate residents using armored vehicles.

Police identified the two slain firefighter as Lt. Michael Chiapperini, a 20-year veteran of the Webster Police Department and "lifetime firefighter," according to Pickering, and Tomasz Kaczowka, who also worked as a 911 dispatcher.

Two other firefighters were wounded and remain the intensive care unit at Strong Memorial Hospital in Rochester, N.Y.

Joseph Hofsetter was shot once. He sustained an injury to his pelvis and has "a long road to recovery," said Dr. Nicole A. Stassen, a trauma physician.

The second firefighter, Theodore Scardino, was shot twice and received injuries to his left shoulder and left lung, as well as a knee.

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Syria envoy seeks peace as clashes rage

BEIRUT (Reuters) - International envoy Lakhdar Brahimi pursued mediation efforts in Damascus on Tuesday, but there was no pause in the bloodletting as Syrian Christians marked a bleak Christmas Day with prayers for peace.

"We are here in a cave that symbolizes Syria right now," said a priest standing beside a nativity scene in a grotto.

"It is cold here but the door is open to all refugees," he told Syrian state TV. "Amid the hunger, cold and deprivation, we still have hope for peace and love for our country."

More than 44,000 Syrians have been killed since a revolt against President Bashar al-Assad erupted 21 months ago, igniting an increasingly sectarian conflict that broadly pits a Sunni Muslim majority against Assad's Alawite minority.

Christians, many of whom have been reluctant to join what they see as an Islamist-tinged insurgency, feel threatened.

Bishop John Kawak, speaking on state TV, said the Christmas holiday was "a symbol for the rebirth of the nation". He condemned "terrorism", the government's term for the rebellion.

Brahimi met some dissidents who are tolerated by Assad but rejected by the mainstream opposition and by rebels fighting to oust him, a day after he held talks with the Syrian president.

There was no word on any progress in the U.N.-Arab League' envoy's drive to end violence that has intensified in recent months as Assad uses airpower and artillery against rebel gains.

Raja Naser, secretary general of the National Coordination Body, said after meeting Brahimi that the envoy planned a week of meetings in Damascus and would stay until Sunday.

"There is still a lot of concern but there is also great hope that these meetings with other Syrian officials will result in some agreements or positive developments," he said.

But most opposition groups appear frustrated with Brahimi's quest for a deal on a transitional government. He has not clarified any role for Assad, whose foes say he must simply go, arguing that too much blood has been shed for any other outcome.

GULF PLEA

Gulf Arab leaders, who have long called for Assad's removal and some of whom have helped the rebels with guns and money, urged swift world action to halt the "massacres" and violations of international law in Syria.

The pro-opposition Syrian Observatory for Human Rights reported clashes and government shelling in hotspots across the country, including towns on the eastern outskirts of Damascus.

Abu Nidal, a spokesman for the Rebel Military Council in Damascus, said fighters had killed the head of a local security branch in the capital's suburb of Jaramana, home to a large Christian and Druze population.

In his Christmas message to the world on Tuesday, Pope Benedict encouraged Syrians not to lose hope for peace.

"May peace spring up for the people of Syria, deeply wounded and divided by a conflict which does not spare even the defenseless and reaps innocent victims," he said.

"I appeal for an end to the bloodshed, easier access for the relief of refugees and the displaced, and dialogue in the pursuit of a political solution to the conflict."

Hundreds of thousands of Syrians have fled abroad to escape the daily violence. Those who remain face severe shortages of food, fuel and other essentials as winter weather takes a grip.

Syrian activists offered a message of solidarity with Christians despite rising tensions in central Hama province, where rebels have demanded that Christian villages let them enter to force out the army and pro-Assad "shabbiha" militias.

"We say to the Christians, you are our brothers and our beloved, and your holiday is our holiday," said Abu Faisal, a Hama activist who posted a Christmas message on the Internet.

"The rebels are surrounding (the Christian town) Muhardeh to get rid of Assad's soldiers and shabbiha, but we have not forgotten your honorable stance when you took care of our refugees when the army entered Hama," he said.

"We will not accept that you are targeted by hatred, you are our brothers and our friends."

(Additional reporting by Philip Pullela in Vatican City and Asma Alsharif in Manama)

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Officials confirm 64% of Egypt voters backed new charter

CAIRO: Egypt's electoral commission confirmed on Tuesday that a controversial, Islamist-backed constitution was passed by 64 per cent of voters, rejecting opposition allegations of polling fraud.

Those official results tallied with figures given by President Mohamed Morsi's Muslim Brotherhood immediately after the last round of polling at the weekend in the two-stage referendum.

The National Salvation Front opposition coalition, however, has already dismissed the plebiscite as "only one battle" and vowed to "continue the fight for the Egyptian people."

That sets the scene for continued instability after more than a month of protests, some of them violent, including clashes on December 5 that killed eight people and injured hundreds.

Many creditors, investors and tourists have abandoned Egypt because of the volatility that has prevailed ever since the early 2011 revolution that toppled veteran former leader Hosni Mubarak.

The International Monetary Fund this month put on hold a $4.8 billion loan the country needs to prevent a looming currency collapse.

The rating agency Standard and Poor's has downgraded Egypt's long-term credit rating one notch to 'B-' because the "elevated" political tensions show no sign of abating.

Samir Abul Maati, the president of the national electoral commission, told a Cairo news conference late Tuesday that a total of 63.8 per cent of valid ballots supported the new constitution.

Turnout was 32.9 per cent he said.

He added that opposition allegations of fake judges supervising some of the polling were unfounded.

The opposition, which has seized on the low turnout to challenge the legitimacy of the charter, appeared to be ready to accept the official results.

Front leader Mohamed ElBaradei, a Nobel Peace laureate and former chief of the UN atomic energy agency, admitted to the US network PBS on Monday that the referendum "is going to pass."

"But it's a really sad day in my view for Egypt, because it is going to institutionalise instability," he said.

ElBaradei said the new charter should be treated as "an interim one" until another is written up on the basis of consensus.

The opposition argues that the Muslim Brotherhood and Salafist groups that backed the charter want to use some of its ambiguous language to slip in sharia-style strict Islamic law.

The text, which was written by a panel dominated by Islamists, has been criticised for weakening women's rights and other rights by the opposition and by the United Nation's human rights chief.

The Muslim Brotherhood counters that the constitution is a needed step to restoring stability.

The low turnout, though, confounded the Brotherhood's public predictions for the past month that voters would give greater support.

"Anything less than 70 per cent would not be good," Amr Darrag, a senior member of the Brotherhood's Freedom and Justice Party who helped draft the constitution, told AFP on December 2.

Attention is now turning to legislative elections which Egypt has to hold by the end of February. The previous parliament was dissolved in June by Egypt's constitutional court.

Morsi has ordered the senate, which currently handles all legislative business, to convene on Wednesday, the official MENA news agency said.

-AFP/ac

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Netflix outage mars Christmas Eve

Netflix's video streaming service suffered a Christmas Eve outage on "many but not all devices" across the Americas, according to the company.

The outage continued into Christmas morning for some customers. The company tweeted on its Netflix US account at 8:45 a.m. PT today that the service was "back to normal streaming levels."

Netflix first started responding to tweets about disrupted service before 1 p.m. PT yesterday. About three hours later, Netflix offered an apology on its main Twitter account.

"We're sorry for the Christmas Eve outage. Terrible timing! Engineers are working on it now," Netflix said in a tweet in the late afternoon yesterday.

Netflix pinned the issue on Amazon Web Services servers and said it was working with Amazon engineers on a fix.

By evening, Netflix noted that the problem was not yet resolved and promised to tweet as soon as it was back up.

Netflix spokesman Joris Evers e-mailed a statement to CNET today about the outage, noting that "streaming was available again for the majority of our members late on Christmas Eve Pacific Time."

Netflix tagged the outage as starting around 12:30 p.m. PT. The number of devices affected by the outage was "initially limited but grew in scope" over the afternoon, Evers said.

"We...apologize for any inconvenience caused last night," today's statement said. "We are investigating the cause and will do what we can to prevent reccurrence."

Not surprisingly, many angry customers poured out their wrath via social networking. However, Joel Braverman, developer program coordinator at Roku, looked at the bright side.

"Thanks to @netflix outage we can likely expect a moderate population explosion in nine months," he tweeted today.

This story was updated at 10:50 a.m. PT.

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4 Firefighters Shot, 2 Killed in NY 'Trap'

Two firefighters were shot and killed and two others hospitalized after a gunman targeted them as they responded to a fire he is believed to have set to a home and a car in Webster, N.Y., police said.

"It does appear that it was a trap that was set for first responders," Police Chief Gerald L. Pickering said.

SWAT team officers used an armored personnel carrier to evacuate 33 residents from homes in the area.

"Upon arrival all [the firefighters] drew fire, all four were shot on the scene," Pickering said. "One was able to flee the scene. The other three were pinned down."

An off-duty police officer responding to the call was also injured by shrapnel and was being treated.

Pickering said the gunman was dead at the scene, but had yet to be identified. The shooter died of a gunshot wound, but police didn't yet know if "it was self inflicted or not."

The firefighters, all volunteers, continued to fight the blaze that engulfed three other homes and damaged three more on a sleepy street next to Lake Ontario that police described as a quiet vacation community.

Police had not yet determined the "weapon or weapons" the gunman used and had not fully investigated the scene because the fires continued to rage.

"I know many people are going to be asking if they were assault rifles," Pickering said, following a week-long debate about such weapons after one was used in a tragic school shooting in Newtown, Conn. on Dec. 14.

Among the dead firefighters was Lt. Michael Chiapperini, a 20-year veteran of the Webster Police Department and "lifetime firefighter," according to Pickering. Chiapperini was a spokesman for the police department, ABC News affiliate WHAM reported.

Police identified the other firefighter killed as Tomasz Kaczowka, who WHAM reported also was a 911 dispatcher.

The chief, choking up, called the incident that shattered the quiet before 6 a.m. on Christmas Eve morning "terrible."

"People get up in the middle of the night to fight fires," he said. "They don't expect to get shot and killed."

Two surviving firefighters were in the intensive care unit at Strong Memorial Hospital in Rochester, N.Y. Both men were awake and breathing on their own after surgery and were in what doctors are calling "guarded condition."

Joseph Hofsetter was shot once and sustained an injury to his pelvis and has "a long road to recovery," said Dr. Nicole A. Stassen, a trauma physician.

The second firefighter, Theodore Scardino, was shot twice and received injuries to his left shoulder and left lung, as well as a knee.

New York Gov. Andrew Cuomo released a statement calling the attack a "senseless act of violence" and the first responders "true heroes."

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Afghan policewoman kills coalition contractor in Kabul: NATO

KABUL (Reuters) - An Afghan woman wearing a police uniform shot dead on Monday a civilian contractor working for Western forces in the police chief's compound in Kabul, NATO said.

The incident is likely to raise troubling questions about the direction of an unpopular war.

It appeared to be the first time that a woman member of Afghanistan's security forces carried out such an attack.

There were conflicting reports about the victim.

A spokesman for the NATO-led International Security Assistance Force (ISAF) said a U.S. police adviser was killed by an Afghan policewoman. Then ISAF said in a statement only that it was a "contracted civilian employee" who was killed.

Mohammad Zahir, head of the police criminal investigation department, described the incident as an "insider attack" in which Afghan forces turn their weapons on Western troops they are supposed to be working with. He initially said the victim was a U.S. soldier.

After more than 10 years of war, militants are capable of striking Western targets in the heart of the capital, and foreign forces worry that Afghan police and military forces they are supposed to work with can suddenly turn on them.

The policewoman approached her victim as he was walking in the heavily guarded police chief's compound in a bustling area of Kabul. She then drew a pistol and shot him once, a senior police official told Reuters.

The police complex is close to the Interior Ministry where in February, two American officers were shot dead at close range at a time anger gripped the country over the burning of copies of the Muslim holy book at a NATO base.

"She is now under interrogation. She is crying and saying 'what have I done'," said the official, of the police officer who worked in a section of the Interior Ministry responsible for gender awareness issues.

TIPS FOR TROOPS

The insider incidents, also known as green-on-blue attacks, have undermined trust between coalition and Afghan forces who are under mounting pressure to contain the Taliban insurgency before most NATO combat troops withdraw by the end of 2014.

Security responsibilities in a country plagued by conflict for decades will be handed to Afghan security forces.

Many Afghans fear a civil war like one dominated by warlords after the withdrawal of Soviet occupying forces in 1989 could erupt again, or the Taliban will make another push to seize power if they reject a nascent peace process.

At least 52 members of the NATO-led International Security Assistance Force have been killed this year by Afghans wearing police or army uniforms.

Insider attacks now account for one in every five combat deaths suffered by NATO-led forces in Afghanistan, and 16 percent of all U.S. combat casualties, according to 2012 data.

Hoping to stop the increase in the attacks, Afghan Defense Ministry officials have given their troops tips in foreign culture.

They are told not to be offended by a hearty pat on the back or an American soldier asking after your wife's health.

NATO attributes only about a quarter of the attacks to the Taliban, saying the rest are caused by personal grievances and misunderstandings. Last year, there were 35 deaths in such attacks.

Afghan forces are vulnerable to "insider attacks" of their own. In Jawzjan province in the north, a police commander shot and killed five comrades overnight, the Interior Ministry said.

Last year, he defected from the Taliban, said the ministry.

Taliban spokesman Zabihullah Mujahid said in a statement that the commander had rejoined the Taliban. That could not be confirmed.

(Writing by Michael Georgy; Editing by Robert Birsel)

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US stocks slide on 'fiscal cliff' concerns

NEW YORK: US stocks dipped during a shortened Christmas Eve session Monday amid pessimism about prospects for a "fiscal cliff" deal by the end of the year.

The Dow Jones Industrial Average was down 51.76 points (0.39 percent) at 13,139.08.

The broad-market S&P 500 lost 3.49 points (0.24 percent) at 1,426.66, while the tech-rich Nasdaq Composite shed 8.41 points (0.28 percent) at 3,012.60.

The White House and lawmakers have until the end of the year to reach a deal to avert the so-called fiscal cliff, a combination of steep tax hikes and spending cuts due to take effect in January.

With the clock ticking, no compromise appears imminent. President Barack Obama and Congress are currently on Christmas break, but are expected to return to Washington later this week.

"US equities finished a quiet, shortened session in the red, as faith in lawmakers' ability to complete a deal to avert the so-called fiscal cliff continued to diminish with time running out," said analysts with Charles Schwab & Co.

Experts warn that going over the "cliff" could take the world's biggest economy back into recession.

Stocks in focus included online deals company Groupon, which dived 3.9 percent.

On Friday, Groupon announced it had acquired CommerceInterface, a provider of web-based channel management technology used in e-commerce operations, to enhance its Groupon Goods marketplace.

Shares of BlackBerry maker Research In Motion were down 2.8 percent after plummeting Friday on investor fears that its new smartphone platform will thin the ranks paying for its service.

Microsoft meanwhile was down 1.4 percent amid a report about tepid sales of its new Windows 8 software.

Investors also eyed oil companies Chevron and Apache, which announced plans to build a liquefied natural gas plant in Canada and jointly exploit shale gas fields there. Chevron lost just shy of one percent and Apache shed 1.7 percent.

Facebook gained 2.6 percent after analysts at Needham & Co raised their target price for the social media giant's stock.

Monday's bond prices fell. The 10-year US Treasury yield rose to 1.77 percent from 1.75 percent late Friday, while the 30-year climbed to 2.94 percent from 2.92 percent. Bond prices and yields move inversely.

After closing early on Monday, US markets will be closed Tuesday in observance of Christmas Day.

-AFP/ac

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