Wall Street poised for higher open on "cliff" optimism

NEW YORK (Reuters) - Wall Street was set to open higher on Monday as investors were encouraged by signs of movement on "fiscal cliff" negotiations over the weekend.

Republican House Speaker John Boehner edged slightly closer to President Barack Obama's key demands as they try to avert the tax hikes and spending cuts that are set to take effect in the new year.

Sources familiar with the talks confirmed that Boehner proposed extending low tax rates for everyone who has earned less than $1 million, and rates would rise for wages above that. But Boehner's new positions were still far from those held by Obama.

"It does solidify that a deal is very close and it could be announced by the end of this week," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York. "We could be surprised. We could actually have a Santa gift that a deal has been reached."

Uncertainty over when and if a federal budget deal will be done has kept investors cautious in what is already a normally quiet trading period heading into year-end.

Investors are worried the economy could slide back into recession if the full brunt of the tax and spending changes is allowed, though most expect a deal will eventually be reached.

Monday's economic data was less cheery as manufacturing activity in the New York region declined for a fifth month in a row in December.

S&P 500 futures rose 5.8 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones industrial average futures gained 33 points and Nasdaq 100 futures added 11 points.

If the S&P 500 sustains its gains through the session, the index would snap a two-day losing streak. Despite the uncertainty of fiscal cliff talks, the S&P has performed well in the last month, grinding higher in mostly light volume.

Clearwire Corp agreed to sell the rest of the company to Sprint Nextel Corp for a slightly sweeter $2.2 billion offer, days after minority shareholders criticized the previous bid as too low. Clearwire tumbled 8.6 percent to $3.08, while Sprint was up 1.8 percent at $5.65.

Apple Inc reversed earlier losses in premarket action and was up 0.5 percent at $512.23 even as Citigroup cut its rating to 'neutral' from 'buy' and slashed its price target to $575 from $675.

Apple shares have tumbled nearly 30 percent in about three months, losing 3.8 percent on Friday alone and helping lead the overall market lower.

The tech giant said it sold more than 2 million of its new iPhone 5 smartphones in China during the three days after its launch there on Friday, but the figures did not ease worries about stiffer competition.

American International Group Inc may raise as much as $6.5 billion from the sale of its remaining stake in AIA Group Ltd, exiting a business the U.S. insurer started nearly 100 years ago. AIG was up 1.7 percent at $34.44.

Networking equipment company Cisco Systems Inc has hired Barclays to sell its Linksys home router unit, a report said on Sunday.

(Editing by Kenneth Barry)

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IHT Rendezvous: IHT Quick Read: Dec. 15

NEWS A 20-year-old man wearing combat gear and armed with pistols and a rifle killed 26 people — 20 of them children — in an attack in an elementary school in Newtown, Connecticut, before committing suicide on Friday. It was America’s second-deadliest school shooting, exceeded only by the 2007 Virginia Tech massacre. James Barron reports.

European Union leaders pledged on Friday to take further steps to set up common banking rules for the bloc, but they delayed plans for a shared budget for the euro zone nations as pressure appeared to be easing on the single currency. James Kanter reports from Brussels.

The lesson of Japan’s last major election, which ousted the long-dominant Liberal Democrats, was that a growing hunger for change had seemed to reach a threshold. But voters look ready to return that party to power Sunday, determined to punish the governing Democratic Party for failing to rein in bureaucracies and mishandling the 2011 nuclear crisis. Martin Fackler reports from Kanazawa, Japan.

At the global treaty conference on telecommunications in Dubai, the United States got most of what it wanted. But then it refused to sign the document and left in a huff. What was that all about, and what does it say about the future of the Internet? Eric Pfanner reports from Dubai.

The U.S. defense secretary, Leon E. Panetta, signed a deployment order on Friday to send 400 American military personnel and two Patriot air defense batteries to Turkey as its tensions intensify with neighboring Syria. Germany and the Netherlands will also send Patriot batteries. Thom Shanker and Michael R. Gordon report.

Xi Jinping, the new Communist Party chief and civilian commander of the Chinese military, is moving quickly to make strengthening the country’s armed forces a centerpiece of what he calls the “Chinese dream” of national rejuvenation. Edward Wong reports from Guangzhou.

Nearly a decade after the German government embarrassingly failed in an attempt to ban the country’s leading extreme-right political party, the upper house of Parliament on Friday voted to initiate a new effort to have the National Democratic Party deemed unconstitutional. Melissa Eddy reports from Berlin.

SPORTS It’s tough to find a place where this Olympic year didn’t leave a trace, from hermetic Saudi Arabia to tiny Grenada. But for Britain, 2012 was a true annus mirabilis, and the London Games were not the only force behind it. Christopher Clarey looks back.

ARTS Increasing scarcity of Old Masters continues to drive up prices, even in hard economic times, but some bargains of rare beauty can still be had. Souren Melikian writes from London.

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The Surface might be even more overpriced than the iPad

Everyone knows that Apple (AAPL) gets away with charging a premium for its wares because its fans have shown they’re willing to pay more money for their favorite products than fans of, say, Samsung (005930) and Amazon (AMZN) are willing to pay. This practice has led to enormous gross margins for Apple products but has not spawned many imitators because few companies command the sort of loyalty that Apple does. But Microsoft (MSFT) apparently believes it can pull off the trick with its Surface tablet, which is actually priced higher relative to its component costs than Apple’s iPad.

[More from BGR: Has the iPhone peaked? Apple’s iPhone 4S seen outselling iPhone 5]

Fortune uses some data from IHS iSuppli to show that the 32GB Surface’s screen, processor, battery, RAM and storage cost $ 271, or $ 22 less than the same components of a 32GB version of the new iPad. What this means is that based solely on the cost of its components, the Surface would haul in a profit of $ 315 for every 32GB Surface sold while Apple would make $ 296 for every new iPad sold. This doesn’t take into account manufacturing and marketing costs, of course, so we can’t look at it as a definitive count of each tablet’s gross margin.

[More from BGR: Sony’s PlayStation 4 could lose to the next Xbox before it’s even released]

All the same, Microsoft’s belief that it can grab iPad-like margins for the Surface stands in stark contrast with Amazon and Google (GOOG), who are making little if any money selling the Kindle Fire HD and the Nexus 7, respectively.

This article was originally published by BGR

Gadgets News Headlines – Yahoo! News

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Donald Faison Marries Cacee Cobb

By Lesley Messer

12/15/2012 at 08:25 PM EST

Cacee Cobb and Donald Faison

Dr. Billy Ingram/WireImage

It's official!

After six years together, Donald Faison and Cacee Cobb were married Saturday night at the Los Angeles home of his Scrubs costar Zach Braff.

Cobb's friend Jessica Simpson was a bridesmaid. Sister Ashlee Simpson also attended.

"What a happy day," Tweeted groomsman Joshua Radin, a singer, who posted a photo of himself with Faison and Braff in their tuxedos.

The couple got engaged in August 2011. At the time, Faison Tweeted, "If you like it then you better put a Ring on it," and Cobb replied, "If she likes it then she better say YES!!"

Since then, the couple had been hard at work planning their wedding. On Nov. 12, Faison, who currently stars on The Exes, Tweeted that they were tasting cocktails to be served on the big day.

"Alcohol tasting for the wedding!" he wrote, adding a photo of the drinks. "The [sic] Ain't Say It Was Going To Be Like This!!!"

This is the first marriage for Cobb. Faison was previously married to Lisa Askey, with whom he has three children. (He also has a son from a previous relationship.)

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Experts: No link between Asperger's, violence

NEW YORK (AP) — While an official has said that the 20-year-old gunman in the Connecticut school shooting had Asperger's syndrome, experts say there is no connection between the disorder and violence.

Asperger's is a mild form of autism often characterized by social awkwardness.

"There really is no clear association between Asperger's and violent behavior," said psychologist Elizabeth Laugeson, an assistant clinical professor at the University of California, Los Angeles.

Little is known about Adam Lanza, identified by police as the shooter in the Friday massacre at a Newtown, Conn., elementary school. He fatally shot his mother before going to the school and killing 20 young children, six adults and himself, authorities said.

A law enforcement official, speaking on condition of anonymity because the person was not authorized to discuss the unfolding investigation, said Lanza had been diagnosed with Asperger's.

High school classmates and others have described him as bright but painfully shy, anxious and a loner. Those kinds of symptoms are consistent with Asperger's, said psychologist Eric Butter of Nationwide Children's Hospital in Columbus, Ohio, who treats autism, including Asperger's, but has no knowledge of Lanza's case.

Research suggests people with autism do have a higher rate of aggressive behavior — outbursts, shoving or pushing or angry shouting — than the general population, he said.

"But we are not talking about the kind of planned and intentional type of violence we have seen at Newtown," he said in an email.

"These types of tragedies have occurred at the hands of individuals with many different types of personalities and psychological profiles," he added.

Autism is a developmental disorder that can range from mild to severe. Asperger's generally is thought of as a mild form. Both autism and Asperger's can be characterized by poor social skills, repetitive behavior or interests and problems communicating. Unlike classic autism, Asperger's does not typically involve delays in mental development or speech.

Experts say those with autism and related disorders are sometimes diagnosed with other mental health problems, such as depression, anxiety, bipolar disorder or obsessive-compulsive disorder.

"I think it's far more likely that what happened may have more to do with some other kind of mental health condition like depression or anxiety rather than Asperger's," Laugeson said.

She said those with Asperger's tend to focus on rules and be very law-abiding.

"There's something more to this," she said. "We just don't know what that is yet."

After much debate, the term Asperger's is being dropped from the diagnostic manual used by the nation's psychiatrists. In changes approved earlier this month, Asperger's will be incorporated under the umbrella term "autism spectrum disorder" for all the ranges of autism.

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AP Writer Matt Apuzzo contributed to this report.

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Online:

Asperger's information: http://1.usa.gov/3tGSp5

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Wall Street Week Ahead: Holiday "on standby" as clock ticks on cliff

NEW YORK (Reuters) - The last two weeks of December are traditionally quiet for stocks, but traders accustomed to a bit of time off are staying close to their mobile devices, thanks to the "fiscal cliff."

Last-minute negotiations in Washington on the so-called fiscal cliff - nearly $600 billion of tax increases and spending cuts set to take effect in January that could cause a sharp slowdown in growth or even a recession - are keeping some traders and analysts from taking Christmas holidays because any deal could have a big impact on markets.

"A lot of firms are saying to their trading desks, 'You can take days off for Christmas, but you are on standby to come in if anything happens.' This is certainly different from previous years, especially around this time of the year when things are supposed to be slowing down," said J.J. Kinahan, chief derivatives strategist at TD Ameritrade in Chicago.

"Next week is going to be a Capitol Hill-driven market."

With talks between President Barack Obama and House Speaker John Boehner at an apparent standstill, it was increasingly likely that Washington will not come up with a deal before January 1.

Gordon Charlop, managing director at Rosenblatt Securities in New York, will also be on standby for the holiday season.

"It's a 'Look guys, let's just rotate and be sensible" type of situation going on," Charlop said.

"We are hopeful there is some resolution down there, but it seems to me they continue to walk that political tightrope... rather than coming up with something."

Despite concerns that the deadline will pass without a deal, the S&P 500 has held its ground with a 12.4 percent gain for the year. For this week, though, the S&P 500 fell 0.3 percent.

BEWARE OF THE WITCH

This coming Friday will mark the last so-called "quadruple witching" day of the year, when contracts for stock options, single stock futures, stock index options and stock index futures all expire. This could make trading more volatile.

"We could see some heavy selling as there is going to be a lot of re-establishing of positions, reallocation of assets before the year-end," Kinahan said.

RETHINKING APPLE

Higher tax rates on capital gains and dividends are part of the automatic tax increases that will go into effect next year, if Congress and the White House don't come up with a solution to avert the fiscal cliff. That possibility could give investors an incentive to unload certain stocks in some tax-related selling by December 31.

Some market participants said tax-related selling may be behind the weaker trend in the stock price of market leader Apple . Apple's stock has lost a quarter of its value since it hit a lifetime high of $705.07 on September 21.

On Friday, the stock fell 3.8 percent to $509.79 after the iPhone 5 got a chilly reception at its debut in China and two analysts cut shipment forecasts. But the stock is still up nearly 26 percent for the year.

"If you owned Apple for a long time, you should be thinking about reallocation as there will be changes in taxes and other regulations next year, although we don't really know which rules to play by yet," Kinahan said.

But one indicator of the market's reduced concern about the fiscal cliff compared with a few weeks ago, is the defense sector, which will be hit hard if the spending cuts take effect. The PHLX Defense Sector Index <.dfx> is up nearly 13 percent for the year, and sits just a few points from its 2012 high.

(Reporting by Angela Moon; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)

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Voters in Egypt Cast Ballots on Draft Constitution

CAIRO — Egyptians voted on Saturday in a referendum on an Islamist-backed draft constitution, even as they doubted that the results would end three weeks of violence, division and distrust between the Islamists and their opponents over the ground rules of Egypt’s promised democracy.

By midmorning Saturday, long lines had formed outside polling stations around the capital and the country. Military officers were on hand to ensure security. Despite a new outbreak of fighting over the charter in Alexandria and opposition warnings of chaos, by late afternoon the streets were free of protests for the time in weeks. Many expressed their confidence in the integrity of the vote, but continued to criticize the process that produced the charter.

Even as they waited to cast their ballots, voters continued to spar. Some said that Egypt’s new Islamist leaders had unfairly steamrolled the charter over the objections of other parties and the Coptic Christian church; others blamed the Islamists opponents for refusing to negotiate in an effort to undermine democracy because it went against them. Many expressed discontent with political leaders on both sides of the fight.

“Neither group can accept its opposition,” said Ahmed Ibrahim, 40, a government clerk waiting to vote in a middle-class neighborhood in the Nasr City area. Whatever the outcome, he said, “one group in their hearts will feel wronged, and the other group will gloat over their victory, and so the wounds will remain.”

The referendum on a new constitution once promised to be a day when Egyptians realized the visions of democracy, pluralism and national unity that defined the 18-day-revolt against the former leader Hosni Mubarak. But then came nearly two years of a chaotic political transition, in which Islamists, liberals, leftists, the military and the courts all jockeyed for power over an ever-shifting timetable.

On Saturday, Egyptians voted on a rushed revision of the old Mubarak charter that many international experts faulted as a missed opportunity, stuffed broad statements about Egyptian identity but riddled with loopholes about the protection of rights.

Many voters waiting in line on Saturday said they rejected the exploitation of the emotional issue of religion by both sides: the Islamists who sought to frame the debate over the constitution as a debate over Islamic law, and opponents who accused President Mohamed Morsi and his Islamist allies in the Muslim Brotherhood of laying the groundwork for a theocracy.

“It is not about these emotional issues,” said Talan Hassaballah, a businessman waiting to vote in the Nasr City neighborhood. “I am going to vote no, but not because I disagree with the Muslim Brotherhood or the president.”

Like most who said they would vote against the referendum, he faulted its provisions on issues of “social justice,” like guarantees of human rights, workers’ rights and social services. “They are vague,” he said.

Egypt’s Christian minority, believed to make up about 10 percent of the population, were particularly critical during the the debate. Muslim satellite networks often faulted angry Christians for provoking violence, and Christians were surprised that the Islamists leaders of the constitutional assembly had pushed out the charter even after the official representatives of the Coptic Church had withdrawn in protest.

“The entire Christian community was offended,” Nagwa Albert, 56, said after she voted against the charter. Speaking of the Islamist leaders’ statements to rally support for the charter, she said: “It feels like the beginning of a war.”

In the Cairo neighborhood of Shubra, Muslim and Christian voters each took turns approaching journalists to try to contradict the group’s depiction of the constitutional debate. Sarwat Mikhail, a 53-year-old Christian, blamed Mr. Morsi for recklessly rushing to ratify the charter. “We still have not found someone who respects us, and fears for his people,” he said.

Nadra Mandoor, a 49-year-old Muslim lawyer next to him, insisted that her Christian neighbors misconstrued the charter. Opposition leaders, she said, “do not want the country to move forward,” she said. “Do we respect the dictatorship of the minority?”

Several Muslims voting against the referendum said they were offended at Friday Prayer by imams who had urged them to vote ‘yes’ in the name of religion. In Alexandria, one such appeal by an ultraconservative sheikh set off a street fight that injured more than a dozen people, until riot police broke it up with tear gas.

Mayy El-Sheikh and Mai Ayyad contributed reporting.

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Stars Tweet Over Gun Control Following Elementary School Shootings In Connecticut — Updated

Celebrities were outraged over the tragic elementary school shooting in Newtown, Conn. on Friday, and many immediately turned to Twitter, to share their sadness.

And some even urged America’s leaders to address gun control.

PLAY IT NOW: Edward Norton Discusses Tragic Colorado Shootings

“Gun control is our only road to freedom. Freedom from the fear of senselessly losing children. I’m so saddened. WE NEED LAWS NOW,” “Parks and Recreation” actress Rashida Jones Tweeted.

Singer Michelle Branch also touched on the topic in her Tweet, writing, “Gun control people!!! My heart is breaking. As a parent this is my worst nightmare.”

VIEW THE PHOTOS: Stars We Lost In 2012

“Two and a Half Men’s” Holland Taylor wrote, “Just heard re CT shooting coming in from a walk… MY GOD. The “right” to carry concealed weapons … this has become a truly INSANE issue.”

Michael Raymond-James, who plays Neal Cassady on “Once Upon A Time,” also tackled gun control in his Tweet, writing, “Unfortunately, we have more access to assault weapons than we do to quality mental health care. That needs to change. #HowManyMoreTimes.”

Brit Piers Morgan wrote, “Why does any civilian in America need a weapon that can fire 100 rounds of ammunition at rapid speed? Give me ONE good reason?” and added, “#GunControl.”

VIEW THE PHOTOS: General Hospital: Cast Photos & More

Filmmaker Michael Moore Tweeted, “The way to honor these dead children is to demand strict gun control, free mental health care, and an end to violence as public policy.”

“General Hospital” actress Lisa LoCicero also Tweeted about gun control, in the wake of the tragedy, writing, “anyone still not ready for us to err on the side of losing some gun rights at this point, needs to leave the country.”

VIEW THE PHOTOS: ‘Grey’s Anatomy,’ Season 5

“Raising Hope” star Martha Plimpton Tweeted, “When can we talk about it? WHEN? Ever? Never? If not now, when we are staring it in the face, then WHEN? #GunControl.”

Motley Crue singer Vince Neil wrote, “Sad day today. Prayers to all the families. Gun Control!!!”

“True Blood” star Denis O’Hare Tweeted, “When do we get to seriously talk about gun control?”

“Malibu Country” actor Jai Rodriguez also Tweeted about gun control, writing, “Sick over what happened in the world this week. We need better gun laws. My heart goes out to all those affected by the horrors.”

Eric Benet Tweeted, “Half of the U.S. will say,”How dare u bring up gun control at a time like this?!” But the sane half will say,”How dare we not!?” pls RT”

Susan Sarandon wrote, “How much more suffering & loss will it take before we better regulate the sale of arms in our country? Let @NRA know how you feel.”

Jaime King wrote, “We do not have time to wait to tighten gun control- we cannot loose anymore innocent lives. I beg the government to stop F-ing around.”

Jason Biggs Tweeted, “Hey-I love guns. I’ve shot, killed, n eaten my own food-n grown cuz of the experience. But clearly, restrictions need to be put into place.”

Hill Harper ‏Tweeted, “Can we please re-institute the assault weapons ban & a ban on selling high load gun clips.”

Ginnifer Goodwin wrote, “I just emailed my representative & it was super easy. http://m.house.gov/ #guncontrol.”

“General Hospital” star Finola Hughes Tweeted, “I believe that ‘other day’ for debating gun laws is now.”

Mehcad Brook, from the USA series “Necessary Roughness” Tweeted, “Why do we go through more scrutiny getting a driver’s license bcuz cars CAN kill than we do obtaining a gun which ONLY kills?”

Other stars shared their deep sadness over the senseless deaths in Connecticut.

“God have mercy!!!! No one deserves this! Praying for the families of the victims of the Connecticut shooting!! What a Christmas it will be,” Rihanna wrote.

“Everyone reading this PLEASE get on your knees and PRAY for the sweet babies, families, and for everyone hurting in Connecticut right now,” Lady Antebellum singer Hillary Scott Tweeted.

“There have been 31 school shootings since Columbine, 14yrs ago. This time, kindergarteners. #NoWords,” Anika Noni Rose wrote.

Jennifer Hudson Tweeted, “Yal, we need to pray! This can’t keep happening . My mama always said ” if u think you’ve seen it all just keep on living.’”

Oprah Winfrey responded to Jennifer’s Tweet, writing, “@IAMJHUD for sure . Pray and take action.. Another WAKE UP for guns.”

Here’s more of what the stars had to say on Twitter:

Katie Couric: Shocked & saddened to hear this morning’s news… My heart goes out to the families of #SandyHook Elementary children, faculty, staff

Joy Behar: My thoughts and prayers are with the families of Sandy Hook Elementary.

Maksim Chmerkovskiy: I hate the “my heart is with” this and “my prayers go out” that… We ALL need to get f***ing angry and DO something more than ‘feel sad’…

Vivica A. Fox: Wow! It seems like we r gonna have to put metal detectors everywhere and armed guards! Seems like u can’t b safe anywhere!! WTH??

Jack Wagner: OMG prayers 4 those affected by the shooting in Connecticut…so sad

Ian Somerhalder: We are sad.Our hearts,thoughts&help are w/you.Im so sorry to all affected by this.So sorry.May all thelove in the world hug you in this time

Ralph Macchio: There are no words… Prayers #Connecticut

Rachel Dratch: Our weekly mass shootings aren’t happening in other countries. And this time, children? WHEN WILL OUR “LEADERS” PUT AN END TO THIS INSANITY?

Teresa Giudice: On days like this, we should hug our children just a little bit tighter.

Steve Levitan: My thoughts and deepest sympathies are with the victims. I should have said that first, but I’m tired of these tragedies. #standuptothenra

Marlee Matlin: I am numb as the numbers of the dead – children and adults – keep ticking up. #PrayForNewtown

Christina Applegate: There are just no words. Only sorrow. We are all shedding tears today for those families.

Karina Smirnoff: We need to pray for all the families affected by the Newtown, CT school shooting. Absolutely devastating….

Kim Kardashian: These kids come to school to learn, never expecting this tragedy to happen. They didn’t deserve this. Praying for everyone involved!

Brandi Glanville: I can not believe this school shooting, what is wrong with people!!!! My heart is breakking for the kids and families.

Jackie Collins: My heart breaks for the Newtown community…for these families.

Damon Lindelof: I’m not “politicizing” squat. I’m heartbroken, angry, confused and scared and I DO NOT UNDERSTAND WHY THIS KEEPS HAPPENING.

DJ Pauly D: My Prayers Go Out To Everyone Affected By This Horrible Shooting In Connecticut

Copyright 2012 by NBC Universal, Inc. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Social Media News Headlines – Yahoo! News

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Connecticut Shooting: Grief and Disbelief at Vigils for Victims

By Sara Hammel

12/15/2012 at 09:45 AM EST

St. Rose of Lima Church

Andrew Gombert/EPA/Landov

A palpable grief hung in the air on a bitterly cold night in Newtown, Conn., on Friday night as hundreds came out to mourn the dead – 20 children and six adults – of the
mass shooting just hours before.

Several services were held around the area, including one at the town hall. At the St. Rose of Lima Church people packed the pews and spilled out the doors.

While hymns and prayers could be heard from inside, outside people cried, hugged, and even laughed at times. Some participated in a prayer circle, silently holding hands before beginning to sing songs including "Amazing Grace" and "Silent Night."

Many who attended told PEOPLE they were there to pay their respects to the victims and their families, and some had closer connections.

Tiana Dwyer, a high-school student in Newtown, spent several hours a week with a 5-year-old boy who reportedly died in the shooting, and Friday night held a candle for him.

"I came out to honor him and all the kids who died," she said. "He was a really nice kid. He was a little shy. It’s really sad, I can’t believe it happened. I’m so upset."

A priest handed out wafers outside as people left the service, and many stayed afterward to connect and to observe the nativity scene outside the church.

Earlier, the church's Monsignor Robert Weiss told PEOPLE he'd been counseling survivors and families for much of the day, and described the shock many are experiencing.

"I think nobody can understand who this is or why [the shooter] would do this," he said. "Why would you walk into a classroom of little children and do what he did? That's probably the biggest question right now."

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Fewer health care options for illegal immigrants

ALAMO, Texas (AP) — For years, Sonia Limas would drag her daughters to the emergency room whenever they fell sick. As an illegal immigrant, she had no health insurance, and the only place she knew to seek treatment was the hospital — the most expensive setting for those covering the cost.

The family's options improved somewhat a decade ago with the expansion of community health clinics, which offered free or low-cost care with help from the federal government. But President Barack Obama's health care overhaul threatens to roll back some of those services if clinics and hospitals are overwhelmed with newly insured patients and can't afford to care for as many poor families.

To be clear, Obama's law was never intended to help Limas and an estimated 11 million illegal immigrants like her. Instead, it envisions that 32 million uninsured Americans will get access to coverage by 2019. Because that should mean fewer uninsured patients showing up at hospitals, the Obama program slashed the federal reimbursement for uncompensated care.

But in states with large illegal immigrant populations, the math may not work, especially if lawmakers don't expand Medicaid, the joint state-federal health program for the poor and disabled.

When the reform has been fully implemented, illegal immigrants will make up the nation's second-largest population of uninsured, or about 25 percent. The only larger group will be people who qualify for insurance but fail to enroll, according to a 2012 study by the Washington-based Urban Institute.

And since about two-thirds of illegal immigrants live in just eight states, those areas will have a disproportionate share of the uninsured to care for.

In communities "where the number of undocumented immigrants is greatest, the strain has reached the breaking point," Rich Umbdenstock, president of the American Hospital Association, wrote last year in a letter to Obama, asking him to keep in mind the uncompensated care hospitals gave to that group. "In response, many hospitals have had to curtail services, delay implementing services, or close beds."

The federal government has offered to expand Medicaid, but states must decide whether to take the deal. And in some of those eight states — including Texas, Florida and New Jersey — hospitals are scrambling to determine whether they will still have enough money to treat the remaining uninsured.

Without a Medicaid expansion, the influx of new patients and the looming cuts in federal funding could inflict "a double whammy" in Texas, said David Lopez, CEO of the Harris Health System in Houston, which spends 10 to 15 percent of its $1.2 billion annual budget to care for illegal immigrants.

Realistically, taxpayers are already paying for some of the treatment provided to illegal immigrants because hospitals are required by law to stabilize and treat any patients that arrive in an emergency room, regardless of their ability to pay. The money to cover the costs typically comes from federal, state and local taxes.

A solid accounting of money spent treating illegal immigrants is elusive because most hospitals do not ask for immigration status. But some states have tried.

California, which is home to the nation's largest population of illegal immigrants, spent an estimated $1.2 billion last year through Medicaid to care for 822,500 illegal immigrants.

The New Jersey Hospital Association in 2010 estimated that it cost between $600 million and $650 million annually to treat 550,000 illegal immigrants.

And in Texas, a 2010 analysis by the Health and Human Services Commission found that the agency had provided $96 million in benefits to illegal immigrants, up from $81 million two years earlier. The state's public hospital districts spent an additional $717 million in uncompensated care to treat that population.

If large states such as Florida and Texas make good on their intention to forgo federal money to expand Medicaid, the decision "basically eviscerates" the effects of the health care overhaul in those areas because of "who lives there and what they're eligible for," said Lisa Clemans-Cope, a senior researcher at the Urban Institute.

Seeking to curb expenses, hospitals might change what qualifies as an emergency or cap the number of uninsured patients they treat. And although it's believed states with the most illegal immigrants will face a smaller cut, they will still lose money.

The potential impacts of reform are a hot topic at MD Anderson Cancer Center in Houston. In addition to offering its own charity care, some MD Anderson oncologists volunteer at a county-funded clinic at Lyndon B. Johnson General Hospital that largely treats the uninsured.

"In a sense we've been in the worst-case scenario in Texas for a long time," said Lewis Foxhall, MD Anderson's vice president of health policy in Houston. "The large number of uninsured and the large low-income population creates a very difficult problem for us."

Community clinics are a key part of the reform plan and were supposed to take up some of the slack for hospitals. Clinics received $11 billion in new funding over five years so they could expand to help care for a swell of newly insured who might otherwise overwhelm doctors' offices. But in the first year, $600 million was cut from the centers' usual allocation, leaving many to use the money to fill gaps rather than expand.

There is concern that clinics could themselves be inundated with newly insured patients, forcing many illegal immigrants back to emergency rooms.

Limas, 44, moved to the border town of Alamo 13 years ago with her husband and three daughters. Now single, she supports the family by teaching a citizenship class in Spanish at the local community center and selling cookies and cakes she whips up in her trailer. Soon, she hopes to seek a work permit of her own.

For now, the clinic helps with basic health care needs. If necessary, Limas will return to the emergency room, where the attendants help her fill out paperwork to ensure the government covers the bills she cannot afford.

"They always attended to me," she said, "even though it's slow."

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Sherman can be followed on Twitter at https://twitter.com/chrisshermanAP .

Plushnick-Masti can be followed on Twitter at https://twitter.com/RamitMastiAP .

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