IHT Rendezvous: As Asia Grows, So Do Prizes

BEIJING — A new Asian prize that pays more than the Nobel Prize will launch next year, joining an expanding list of cash-rich awards in the region as prosperity and philanthropy grow. Yet one prize – China’s Confucius Peace Prize – set up in 2010 in apparently outraged response to the award of the Nobel Peace Prize to the jailed Chinese dissident Liu Xiaobo – seems to be unable to establish itself. In fact, as one commentator wrote in the state-run Global Times late last year, “the award has been widely mocked.”

That is unlikely to happen to the Tang Prize, set up by Samuel Yin, a multibillionaire from Taiwan who has pledged to give away nearly all his wealth.

The new prize will award $1.7 million every other year to winners in each of four fields: sustainable development, biopharmaceutical science, Sinology, and the rule of law, Science magazine reported. The money will be divided into two parts, an award and a research fund, with the bulk going to the award.

Mr. Yin, head of Ruentex Group, is Taiwan’s seventh-richest person, according to Forbes magazine, worth about $3.1 billion from diversified investments including a hypermarket, insurance and Taiwanese real estate.

The award, announced on Monday in Taipei, “lengthens the list of rich science prizes funded by Asian philanthropists,” Science magazine reported. “Run Run Shaw, a Hong Kong media mogul, in 2002 established the Shaw Prize, which annually confers $1 million for work in astronomy, life science and medicine, and mathematical sciences.”

“Three other major science prizes in Japan hand out about $550,000 to each winner annually,” including the Kyoto Prize (technology, basic science, arts and philosophy), the Japan Prize (environment, energy and infrastructure, and health care and medical technology), and the Blue Planet Prize (environmental research.)

Mr. Yin hopes the new prize will “encourage more research that is beneficial to the world and humankind, promote Chinese culture, and make the world a better place,” according to a press release.

Academia Sinica, which oversees Taiwan’s premier research labs, will be responsible for the nomination and selection process, Science reported. The prize is named after the Tang dynasty, a high point in Chinese civilization and multiculturalism.

Yet if awarding prizes for science is relatively straightforward, awarding prizes for peace is far more controversial, as the ongoing debacle with the Confucius Peace Prize shows.

Its travails have been widely reported, with this story in Time magazine summing up some of the major issues, which include “wacky” nominee lists and a controversial founder, the Peking University professor and staunch Chinese ultra-nationalist Kong Qingdong, who claims to be a 73rd-generation offspring of Confucius himself and who early last year caused a storm of controversy after calling Hong Kong people “dogs” and “thieves.”

Time said the prize, awarded by “an obscure mainland group” (the China International Peace Research Center) was “a clumsy attempt to divert attention from the fact that the world’s most famous peace prize had just gone to a jailed Chinese dissident.” The government has reportedly dissociated itself from the award.

In 2010 and 2011 it was awarded, respectively, to a Taiwanese politician, Lien Chan, and to the Russian leader Vladimir V. Putin. Neither showed up for the ceremony.

Instead, wrote Xue Lei, a research fellow at the Shanghai Institutes for International Studies in the Global Times, “the award was given to a terrified small child” who was supposed to represent Mr. Lien, and to “two Russian hotties, supposed to represent Russian President Vladimir Putin,” all of which “just added to the entertainment value.”

Now, it appears to be slipping below the radar altogether.

Only a determined search of the Chinese internet showed up a report, dated Dec. 28, that suggested that last year a prize committee of 39 “experts and scholars” had in fact picked two winners for the 2012 award: Yuan Longping, known as “the father of hybrid rice,” a well-known scientist who for decades has worked to increase rice yields; and Kofi Annan, the former secretary-general of the United Nations.

But as the report on clubkdnet, an online chat forum, said, “there are no photographs on the internet of them receiving their prizes.”

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Soldier talks about his new arms after transplant

BALTIMORE (AP) — A soldier who lost all four limbs in an Iraq roadside bombing has two new arms following a double transplant at Johns Hopkins Hospital.

Twenty-six-year-old Brendan Marrocco along with the surgeons who treated him will be at the Baltimore hospital on Tuesday to discuss the new limbs.

The transplants are only the seventh double-hand or double-arm transplant ever conducted in the United States.

The infantryman was injured by a roadside bomb in 2009. The New York City man also received bone marrow from the same dead donor. The approach is aimed at helping his body accept the new arms with minimal medication to prevent rejection.

The military is sponsoring operations like these to help wounded troops. About 300 have lost arms or hands in the wars.

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Stock futures lower; Ford volatile in premarket

NEW YORK (Reuters) - Stock index futures edged lower on Tuesday as investors took profits following an extended rally and waited for earnings and data on consumer confidence and housing.

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 results from both Ford Motor Co and Pfizer Inc .

Pfizer, a Dow component, posted fourth-quarter earnings that topped expectations, sending shares up 0.6 percent to $26.95. Eli Lilly and Co , a peer pharmaceutical company, rose 1.6 percent to $53.50 after it also reported adjusted fourth-quarter earnings and revenue that beat expectations.

Ford also posted earnings that topped consensus views, but the stock was volatile in premarket trading fluctuating from rise to loss. The second-largest car company forecast a wider loss in its European segment because of weakness in that region. After climbing more than 4 percent before the bell, it turned lower to fall 2 percent to $13.50.

"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.

Yahoo Inc rose 1.9 percent to $20.70 in premarket trading a day after reporting adjusted earnings that beat expectations and forecasting a rise in annual revenue.

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 5.2 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 30 points and Nasdaq 100 futures slid 9.5 points.

The Federal Reserve's Open Market Committee begins two days of meetings on interest rates. Traders speculated more solid U.S. growth indicators 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.

Still, market participants will look to the latest economic data for evidence the recent rally was justified.

January consumer confidence, due at 10 a.m. (1500 GMT) is seen dipping to 64 from 65.1 in the previous month. The S&P Case/Shiller Home Price Index for November is seen showing an increase of 0.6 percent in home prices. Case/Shiller is due at 9 a.m.

While the housing market has recently shown signs of improvement, data released on Monday showed pending home sales unexpectedly slumped in December.

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)

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IHT Rendezvous: IHT Quick Read: Jan. 28

NEWS A fire ignited by a flare from a band’s pyrotechnics spectacle swept through a nightclub filled with hundreds of university students early on Sunday morning in Santa Maria, a city in southern Brazil, killing at least 233 people, officials said. Simon Romero reports from Rio de Janeiro.

President Mohamed Morsi declared a state of emergency and a curfew in three major cities on Sunday, as escalating violence in the streets threatened his government and Egypt’s democracy. David Kirkpatrick reports from Port Said, Egypt.

Milos Zeman, a former leftist prime minister and economist known for his outspoken populism, became the first popularly elected president of the Czech Republic. Dan Bilefsky reports from Prague.

Despite the government’s best efforts, tax evasion remains something of a pastime in Italy. So this month the National Revenue Agency decided to try a new tack. Rather than attempting to ferret out how much suspected tax cheats earn, the agency began trying to infer it from how much they spend. Elisabetta Povoledo reports from Rome.

President Barack Obama is committed to reaching an agreement to smooth trade with the European Union, the United States’ top negotiator has said, but only if it is constructed in a way that would overcome objections from farm groups and that could win congressional approval. Jack Ewing reports from Davos, Switzerland.

Unlike many publishers that have tried to build digital units on the back of existing brands, the German company Hubert Burda has looked to new businesses, some started from scratch. Eric Pfanner reports from Munich.

EDUCATION In Indonesia, a movement is under way to teach students about AIDS and contraception. Sara Schonhardt reports from Yogyakarta, Indonesia.

ARTS Steps to strengthen protections for art buyers at auctions and galleries are slow to advance, and some question whether they are even necessary. Robin Pogrebin and Kevin Flynn report.

A new book, “Signs for Peace: An Impossible Visual Encyclopedia,” compiled by the Swiss-born graphic designer Ruedi Baur and his wife, the sociologist Vera Baur Kockot, presents hundreds of images of peace motifs through the ages. Alice Rawsthorn reviews from London.

SPORTS Novak Djokovic won a grueling final 6-7, 7-6, 6-3, 6-2 match over Andy Murray to win his third consecutive Australian Open title. Christopher Clarey reports from Melbourne, Australia.

The Southeast Asian Games, which will be held in Myanmar’s capital, Naypyidaw, and other sites throughout the country, is causing acrimony long before a single athlete has competed. Thomas Fuller reports from Bangkok.

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CDC: Flu seems to level off except in the West

New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.

The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.

Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.

There is still vaccine available although it may be hard to find. The CDC has a website that can help.

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CDC: http://www.cdc.gov/flu/

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Stock futures tick up after durable goods data

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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IHT Rendezvous: The Clinton Doctrine of American Foreign Policy

The partisan political theater, of course, was top-notch. Sen. Rand Paul’s declaration that he would have fired Hillary Rodham Clinton; her angry rebuttal of Sen. Ron Johnson’s insistence that the Obama administration misled the American people about the Benghazi attack; Sen. John McCain’s continued outrage at the slapdash security the State Department provided its employees.

Beneath the posturing, though, ran larger questions: what strategy does the United States have to counter the militant groups running rampant across North and West Africa? And what kind of secretary of state has Mrs. Clinton been? In her last Congressional hearing in that position, Mrs. Clinton expressed exasperation with Washington’s political trench warfare.

“We’ve got to get our act together,” she said.

Mrs. Clinton has been a very good but very cautious secretary of state, many analysts say — one who, for the most part, kept her distance from Afghanistan, Israel-Palestine and other seemingly intractable conflicts.

One State Department official, while praising Mrs. Clinton’s tenure, nonetheless looked forward to the arrival of Sen. John Kerry, her designated successor: “I came to admire Clinton as secretary of state, her focus on women and innovation in particular,” the official told me. “But am really happy to have someone in the job who does not retain political ambitions.”

In a recent assessment of Mrs. Clinton’s tenure, Michael O’Hanlon of the Brookings Institution argued that she had enjoyed some success, including restoring the United States’ image abroad, but she made no historic breakthroughs, he said.

Mr. O’Hanlon argued that Mrs. Clinton’s famed work ethic paid off. She made few mistakes, no major gaffes and did not “needlessly antagonize” friends or enemies. Mr. O’Hanlon called Mrs. Clinton’s role in the administration’s “pivot to Asia” and tough stance toward China arguably “her greatest and most memorable contribution.”

The problem, as last week’s hearing showed, is that the Middle East and the threat of terrorism continue to dominate American foreign policy. Even as the United States becomes more energy independent, terrorist attacks like the kidnappings in a remote oil facility in Algeria will make headlines and influence markets. Barring a massive shift in American domestic politics, Israel’s security will continue to be viewed as a vital interest of the United States.

Mrs. Clinton, to her credit, made forty trips to Europe that helped produce crippling new sanctions on Iran. Last fall, she helped broker a ceasefire between Israel and Hamas in Gaza. But she failed to personally engage in Israeli-Palestinian peace talks.

To be fair, the Obama White House may have limited her options. After promising more open debate than occurred under President George W. Bush, the Obama White House tightly controlled the formulation of American foreign policy. Critics have also accused Mr. Obama of being overly cautious in foreign affairs.

With the exception of the Libya intervention and the raid that killed Osama bin Laden, Mr. Obama was “coolly calculating and reluctant to engage” in his first-term foreign policy, The Economist magazine recently argued.

Mr. Obama, of course, is trying to avoid the over-reach his predecessor displayed in Iraq. He also faces enormous fiscal pressures at home. But there is a risk that the pendulum is swinging too far toward a smug isolationism in Washington.

As Mrs. Clinton departs, worrying trends are emerging in the way America engages with the world. The new U.S. weapon of choice is the drone strike — a tactic that carries zero political risk at home but spreads anti-Americanism abroad.

Complex foreign policy problems that threaten American security are increasingly seen as “entanglements” best avoided. There is a convenient view that there are no “good guys” in the power struggles now unfolding in the post-Arab-Spring Middle East.

The potential lesson of the bruising political battle over Benghazi is simple: Take few risks, turn embassies into bunkers and avoid political firestorms at home. In her testimony, Mrs. Clinton passionately argued against that approach.

Declaring Somalia and Colombia success stories, she said the United States could counter militancy in Africa and the Middle East by working with regional organizations and training local security forces. U.S. funding and training of an African Union Mission in Somalia, or AMISOM, Mrs. Clinton said, had slowly succeeded in driving back al-Shabaab and other Islamist forces. In Colombia, the government has driven back FARC rebels and narco-traffickers.

There have been setbacks and the efforts in both countries are imperfect. But local security forces trained and funded by the international community slowly gained ground in painstaking efforts over many years.

“What we have to do is recognize that we’re in for a long-term struggle here,” Mrs. Clinton said at the hearing. “And that means we’ve got to pay attention to places that historically we have not chosen to or had to.”

During their heated exchange, Mr. McCain criticized Mrs. Clinton and the Obama administration for not doing enough to train Libya’s security forces. Secretary Clinton replied that House Republicans had put a hold on the funding the administration requested to train Libyans.

“If this is a priority and we are serious about trying to help this government stand up security forces,” she said, “then we have to work together.”

Mrs. Clinton is right. And so is Mr. McCain. Congressional politicking hinders the State Department. The State Department executed terribly in Benghazi. But Mrs. Clinton, who I have criticized in the past, won the day.

“We are in a new reality,” she said, referring to the change sweeping across the Middle East. “We are trying to makes sense of events that nobody had predicted but that we’re going to have to live with.”

Mrs. Clinton called for the United States to show “humility” abroad and stop making national security issues “political footballs” at home. She said a Cold War style bipartisan agreement should be reached to launch a long-term American effort to strengthen local security forces and promote democracy across Africa and the post-Arab-Spring Middle East.

“Let’s be smart and learn from what we’ve done in the past,” she said. “Put forth a policy that wouldn’t go lurching from administration to administration but would be a steady one.”

“We have more assets than anyone in the world,” Mrs. Clinton added, “but I think we’ve gotten a little bit off track in trying to figure out how best to utilize them.”

A “little bit off track” is a euphemism for partisanship endangering national security. If the U.S. doesn’t get its act together, expect more Benghazis.

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SAG Awards: Watch Live with PEOPLE

01/27/2013 at 09:30 AM EST

Happy Screen Actors Guild Awards!

On a night when the biggest stars of TV and film honor each other, we will be covering every inch of the red carpet beginning at 6 p.m. ET (3 p.m. PT) on our live pre-show, hosted by PEOPLE's Deputy Managing Editor Peter Castro and PEOPLE StyleWatch Managing Editor Susan Kaufman, right here on PEOPLE.com.

Join our @StyleWatchMag and @peoplemag Twitter party on Sunday to discuss the best dresses, the hottest hair and makeup and the most eye-popping jewels that nominees like Claire Danes, Jessica Chastain and Jennifer Lawrence will be wearing. Just use hashtag #PeopleSAG and your comments could appear on PEOPLE.com.

Once the show starts at 8 p.m. ET (5 p.m. PT), the fun continues as we track the winners, losers and best speeches of the night. PEOPLE editors and the stars, including Busy Phillips, will be Tweeting commentary, exclusive photos, behind-the-scenes tidbits and more on one of Hollywood's most heartfelt nights.

The 19th Annual Screen Actors Guild Awards will air live on TNT and TBS on Sunday, Jan. 27, at 8 p.m. ET (5 p.m. PT) from the Shrine Auditorium in Los Angeles. Be sure to join us!

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CDC: Flu seems to level off except in the West

New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.

The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.

Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.

There is still vaccine available although it may be hard to find. The CDC has a website that can help.

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CDC: http://www.cdc.gov/flu/

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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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