April 25, 2024

As Budget Talks Continue, Markets Change Little

Stocks closed little changed Tuesday on Wall Street as budget talks continued in Washington.

The Dow Jones industrial average closed down 13.82 points, or 0.11 percent, at 12,951.78 after trading in a range of 82 points. The Standard Poor’s 500-stock index was down 2.41 points, or 0.17 percent, at 1,407.05. The Nasdaq composite index was down 5.51 points, or 0.18 percent, at 2,996.69.

Investors are waiting for developments on the budget talks, which are aimed at avoiding the government spending cuts and tax increases that would begin to arrive Jan. 1 and could eventually cause a recession.

President Obama said Tuesday that a proposal released on Monday by the House speaker, John Boehner, was “still out of balance.” Mr. Obama, in an interview with Bloomberg Television, insisted on higher taxes for wealthy Americans.

Republicans, led by Mr. Boehner, have balked at Mr. Obama’s proposal of $1.6 trillion in additional taxes over a decade, and called on Monday for increasing the Medicare eligibility age and lowering cost-of-living increases for Social Security benefits.

Among stocks making big moves, Darden Restaurants, owner of the Olive Garden, Red Lobster and LongHorn Steakhouse restaurant chains, fell $5.02, or 9.6 percent, to $47.40 after cutting its profit forecast for fiscal 2013.

Stock trading will probably become more volatile the longer talks go without a deal, J. J. Kinahan, chief derivatives strategist at TD Ameritrade, said.

Despite the lack of progress, the stock market has gained back nearly all of a postelection slide caused by concerns about the fiscal impasse.

The S. P. is now about 1.5 percent below its level on Nov. 6. In mid-November it was down as much as 5 percent.

Bill Gross, the managing director of the fund manager Pimco, told investors that they should expect annualized bond returns of 3 to 4 percent in the future and stock returns that are “only a few percentage points higher.”

The S. P. 500 has risen 12 percent this year. High debt and slowing global growth will weigh on the economy, Mr. Gross said.

Interest rates were flat. The Treasury’s benchmark 10-year note rose 5/32, to 100 6/32 and the yield slipped to 1.60 percent from 1.62 percent late Monday.

Among other stocks making big moves, Big Lots, the discount retailer, gained $3.23, or 11.5 percent, to $31.27 after raising its full-year earnings forecast and reported a loss that was not as bad as analysts had expected.

Pep Boys fell $1.11, or 10.4 percent, to $9.57 after posting a loss on weak sales and rising costs at its auto stores.

MetroPCS fell 81 cents, or 7.5 percent, to $9.96 after Reuters reported that Sprint is not considering making a counteroffer for the cellphone business. MetroPCS and T-Mobile said in October that they had agreed to combine their businesses.

Article source: http://www.nytimes.com/2012/12/05/business/daily-stock-market-activity.html?partner=rss&emc=rss

In Food Commercials, Flying Doughnuts and Big Budgets

It is supposed to drip twice, on cue, from the bottom right-hand corner of a forkful of tortellini — first as the fork is lifted above the plate and, second, after the fork pauses briefly in the air and starts to rise again.

Two drips. A sequence that lasts a second and a half, tops.

A dozen men at MacGuffin Films, a studio in Manhattan, are struggling to capture this moment. For more than an hour one recent afternoon, they huddle around a table rimmed with enormous stage lights, fussing over a casserole as if it’s a movie star getting primped for a close-up.

“Lights. Roll. Action. Drip!” shouts Michael Somoroff, a veteran commercial director who has shot television ads for Red Lobster, Burger King, Papa John’s and dozens of other fast-food and casual-dining chains. A specialist in the little-known world of tabletop directing — named for the piece of furniture where most of the work is set — Mr. Somoroff is hired to turn the most mundane and fattening staples of the American diet into luscious objects of irresistible beauty.

If you watch television, you’ve seen his work, and the work of the five or six other major players in this micro-niche of advertising. These men — yes, they’re all men — make glossy vignettes that star butter-soaked scallops and glistening burgers. Their cameras swirl around fried chicken, tunnel through devil’s food cake and gape as soft-serve cones levitate and spin.

Few outside the business know their names. But given the more than $4 billion in television air time bought by restaurant chains and food conglomerates each year, these directors arguably have some of the widest exposure of any commercial artists in the country. In a typical week, tens of millions of viewers see their work.

“Aside from movie directors,” Mr. Somoroff says during a break in shooting, “I don’t know anyone with an audience as large as mine.”

On this particular afternoon, he is filming a commercial for a chain that did not want to see its name in this article. And you can sort of understand why. If you’ve ever been to a restaurant and thought, “This does not look like the dish in the ad,” here’s the irony: The dish in the ad doesn’t look like the dish in the ad, either.

This casserole shot, for instance, is an elaborate tango of artifice, technology and timing. The steam wafting over the dish comes not from the food, but from a stagehand crouched under a table with the kind of machine that unwrinkles trousers.

The hint of Alfredo sauce that appears when the fork emerges from the pasta? That’s courtesy of tubes hidden in the back of the dish and hooked to what look like large hypodermic needles. Moments before each take, Mr. Somoroff yells, “Ooze!” That tells the guy with the needles, standing just outside of the frame, to start pumping.

As for that quarrelsome drip from the fork, it is the responsibility of Anthony DeRobertis, a special-effects rigger who holds his own hypodermic of sauce and is having a hard time synching with a hand model, a young man with a military haircut who is clutching the fork.

“Anthony, the second drip is about 10 minutes after the shot is over,” says Mr. Somoroff after five or six takes, sounding faintly annoyed.

“I’m right on it,” Mr. DeRobertis says.

“You’re on it, but it’s not dripping when it has to drip.”

A break is called and a tube is attached to Mr. DeRobertis’s sauce injector, which is then taped near the bottom tine of the fork, in a way that’s invisible to Mr. Somoroff’s immense Photo-Sonics camera.

Sauce and fork are finally in unison. After a few more tries, Mr. Somoroff has a take he likes enough to show to reps from the client and its ad agency, a group of whom are waiting in a nearby room that is decked out with a large high-definition TV. The pasta appears moist, the steam organic and the minuet of drip and hand nothing more than a diner on the verge of a blissful bite.

Article source: http://www.nytimes.com/2011/10/09/business/in-food-commercials-flying-doughnuts-and-big-budgets.html?partner=rss&emc=rss