US home sales hit slowest pace in 6 months in Nov.

WASHINGTON — Fewer Americans bought homes in November as buying slid to its slowest pace in six months.

The National Association of Realtors said Monday that sales of existing homes fell 6.1 percent to a seasonally adjusted annual rate of 4.93 million. That was down from a revised annual pace of 5.26 million in October. Over the past 12 months, sales have risen 2.1 percent.

The combination of higher home prices and relatively stagnant incomes has reduced affordability and restrained buying. A recent decline in mortgage rates has yet to lure more buyers into the market. At the same time, fewer distressed properties and bargains, which tend to attract investors, are coming onto the market.

The Realtors estimate that 2014 sales will end up below 2013 levels. Sales have slumped much of this year after a three-year rally that followed the recession and the implosion of the housing market. Harsh winter weather crippled home buying at the start of 2014. Lower affordability, resulting from tight credit, rising home prices and essentially flat incomes, held back sales for the rest of the year.

The Realtors have estimated that 4.94 million existing homes will be sold this year, down 3 percent from 5.09 million in 2013. Analysts say sales of roughly 5.5 million existing homes are common in a healthy real estate market.

The median price rose 5 percent over the past 12 months to $205,300. That's a positive for owners looking to sell, though it creates an additional challenge for would-be buyers.

The share of first-time buyers climbed to 31 percent last month from a recent average of 29 percent. Still, that's well below the 40 percent share that has been historically common. The modest percentage of first-time buyers is a sign that affordability remains an obstacle for many who would like to purchase but lack the savings or credit record to do so.

November sales fell in all four major geographic regions: Northeast, Midwest, South and West. Buying activity fell over the past 12 months for homes worth less than $250,000.

A sudden blast of cold weather and snowstorms at the end of November might have cut into sales, noted Ian Shepherdson, chief economist at Pantheon Macroeconomics. This November was the coldest since 2000, contributing to the slowest annualized sales pace since May.

The supply of homes for sale also fell from October. There were 2.09 million homes listed for sale in November, down 6.7 percent from the prior month.

Some of the weakness in sales has resulted from a healthier market. Just 9 percent of sales last month were due to foreclosures and short sales, compared with 14 percent last year. The share of purchases by investors was 15 percent in November, compared with 19 percent 12 months ago. This indicates that the market continues to recover from the housing bust, despite the absence of sales growth.

There are signs that sales may improve in 2015. Mortgage rates have fallen sharply in the past few weeks, which should make homes more affordable. The average rate for a 30-year fixed mortgage dropped last week to 3.8 percent, from 3.93 percent the previous week. That was the lowest level since May 2013.

Rates have fallen as investors have plowed their money into 10-year U.S. Treasury notes, after being spooked by plummeting oil prices and signs of slowing growth overseas that make lower risk investments more attractive.

At the same time, consistent job growth has lowered the unemployment rate to 5.8 percent from 7 percent 12 months ago. Steady hiring should eventually boost pay at a pace meaningfully above inflation, which would help boost home sales.

Sales may also pick up as the housing market continues to heal from its boom-and-bust last decade. Real estate data provider Zillow said last week that the proportion of U.S. homeowners with mortgages who are "under water" — meaning they owe more than their house is worth — has fallen by almost half in the past two years.

Rising prices and foreclosures have reduced that figure. As more homeowners gain equity in their homes, they are more likely to list their homes for sale, keeping home prices in check and spurring more sales.

Stan Humphries, Zillow's chief economist, forecasts that sales of existing homes will rise to 5.2 million next year from just under 5 million in 2014.

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Full text of statement from North Korea's National Defence Commission

Full text of statement from North Korea's National Defence Commission

U.S. Urged to Honestly Apologize to Mankind for Its Evil Doing before Groundlessly Pulling up Others

Pyongyang, December 21 (KCNA) -- The Policy Department of the National Defence Commission of the DPRK issued the following statement Sunday:

Strange thing that happened in the heart of the U.S., the ill-famed cesspool of injustice, is now afloat in the world as shocking news.

The Sony Pictures Entertainment, the biggest movie producer in the U.S., which produced the undesirable reactionary film "The Interview" daring hurt the dignity of the supreme leadership of the DPRK and agitating even terrorism and had a plan to distribute it, was exposed to surprisingly sophisticated, destructive and threatening cyber warfare and has been thrown into a bottomless quagmire after suffering property losses worth hundreds of millions of dollars.

The public in the U.S. is now describing this case as "disgrace suffered by Sony Pictures Entertainment," "very sorry thing caused by the U.S.," "Sony Pictures Entertainment showing a white flag before hackers" and the "unprecedented disaster suffered by the U.S."

Those who meted out a stern punishment of justice were reported to be cyber experts styling themselves "guardians of peace".
Seized with terrible horror and threat in face of their merciless hacking attack in retaliation against unjust actions, many movie and drama distributors in North America including 41 states of the U.S. and Canada immediately canceled the screening of the reactionary movie. And it was reported that the Sony Pictures Entertainment which directly sponsored its production and distribution hastily issued a statement on Dec. 25 that it would suspend the screening of the undesirable movie which had been planned in 63 countries.

The NDC of the DPRK highly estimates the righteous action taken by the "guardians of peace," though it is not aware of their residence.

It, at the same time, considers as fortunate the step taken by the Sony Pictures Entertainment to give up the overall distribution of the above-said movie due to the decision and strong pressure of the movie and drama distributors for stopping the screening of the reactionary movie, though belatedly.

This is an official stand of the army and the people of the DPRK on what happened in the heart of the U.S.

This stand is taken by the DPRK because the movie "The Interview" is an undesirable and reactionary one justifying and inciting terrorism which should not be allowed in any country and any region.

Another reason is that the movie is run through with a story agitating a vicious and dastardly method of assassinating a head of a legitimate sovereign state.

No wonder, even political and social circles of the U.S. commented that it is quite wrong to defame the head of the state for the mere reason that his politics is different from that of the U.S. and it is in the hostile relationship with the latter and, therefore, the Sony Pictures Entertainment got into a serious trouble and paid a due price.

For these reasons, the DPRK is more highly praising the "guardians of peace" for their righteous deed which prevented in advance the evil cycle of retaliation- terrorism sparks terrorism.

It is quite natural that the movie and drama producers should refrain from undesirable deeds contrary to the noble mission to lead morality and civilization.

But what matters is that the U.S. and its followers are groundlessly trumpeting that the recent cyber attack was made by the DPRK.

The FBI issued the results of the investigation into the hack at the Sony Pictures Entertainment on December 19.
According to them, it suffered tremendous losses.

One may say this is the due price incurred by wrong deed, the evil act of hurting others.

The U.S. released a statement asserting that this loss was caused by the DPRK.

No matter how big and disgraceful the loss may be, the U.S. should not pull up others for no reason.

The FBI presented a report on the results of technical analysis of hacking program used by the "guardians of peace" for this attack, citing it as the ground that the serious hacking was caused by the DPRK.

The report says the malignant code had access to north Korea's IP already known several times and the hacking methods applied in the "March 20 hacking case" and during cyber warfare against media and various other computer networks in south Korea in recent years are similar to that applied against the Sony Pictures Entertainment this time, being another ground that "this was done by the north".

The report, in particular, adds that the malignant code and algorithm applied during the attack are similar to what was used during the hacking attack on south Korea, citing it as a proof.

Not satisfied with those groundless "evidence", the FBI is letting loose ambiguous remarks that it is hard to fully prove due to the "protection of sensitive information sources."

This means self-acknowledgement that the "assertion about the north's deed" came from an intentional allegation rather than scientific evidence.

It is a common sense that the method of cyber warfare is almost similar worldwide. Different sorts of hacking programs and codes are used in cyberspace.

If somebody used U.S.-made hacking programs and codes and applied their instruction or encoding method, perhaps, the "wise" FBI, too, could not but admit that it would be hard to decisively assert that the attack was done by the U.S.

Moreover, the DPRK has never attempted nor made a "cyber-attack" on south Korea. The rumor about "cyber-attack" by the DPRK was a concoction made by the south Korean puppet regime and its plot.

After all, the grounds cited by the FBI in its announcement were all based on obscure sci-tech data and false story and, accordingly, the announcement itself is another fabrication. This is the DPRK's stand on the U.S. gangster-like behavior against it.

What is grave is that U.S. President Obama is recklessly making the rumor about "DPRK's cyber-attack on Sony Pictures" a fait accompli while crying out for symmetric counteraction, strict calculation and additionally retaliatory sanctions.

This is like beating air after being hit hard. A saying goes every sin brings its punishment with it. It is best for the guilty to repent of its evil doings and draw a lesson when forced to pay dearly for them.

The DPRK has clear evidence that the U.S. administration was deeply involved in the making of such dishonest reactionary movie.
It is said that the movie was conceived and produced according to the "guidelines" of the U.S. authorities who contended that such movies hurting the dignity of the DPRK supreme leadership and inciting terrorism against it would be used in an effective way as "propaganda against north Korea".

The U.S. Department of State's special human rights envoy went the lengths of urging the movie makers to keep all scenes insulting the dignity of the DPRK supreme leadership in the movie, saying it is needed to "vex the north Korean government".

The facts glaringly show that the U.S. is the chief culprit of terrorism as it has loudly called for combating terrorism everywhere in the world but schemed behind the scene to produce and distribute movies inciting it in various countries of the world.

It is not exaggeration to say in the light of the prevailing situation that the U.S. administration and President Obama looking after the overall state affairs of the U.S. have been behind the case.

Can he really cover up the crimes he has committed by trying so hard to falsify the truth and turn white to black.

So we watched with unusual attention what had been done by the "guardians of peace" to avert terrorism and defend justice.

Yet, we do not know who or where they are but we can surely say that they are supporters and sympathizers with the DPRK.
The army and people of the DPRK who aspire after justice and truth and value conscience have hundreds of millions of supporters and sympathizers, known or unknown, who have turned out in the sacred war against terrorism and the U.S. imperialists, the chieftain of aggression, to accomplish the just cause.

Obama personally declared in public the "symmetric counteraction", a disgraceful behavior.

There is no need to guess what kind of thing the "symmetric counteraction" is like but the army and people of the DPRK will never be browbeaten by such a thing.

The DPRK has already launched the toughest counteraction. Nothing is more serious miscalculation than guessing that just a single movie production company is the target of this counteraction. Our target is all the citadels of the U.S. imperialists who earned the bitterest grudge of all Koreans.

The army and people of the DPRK are fully ready to stand in confrontation with the U.S. in all war spaces including cyber warfare space to blow up those citadels.

Our toughest counteraction will be boldly taken against the White House, the Pentagon and the whole U.S. mainland, the cesspool of terrorism, by far surpassing the "symmetric counteraction" declared by Obama.

This is the invariable toughest stand of the army and people of the DPRK.

Fighters for justice including "guardians of peace" who turned out in the sacred drive for cooperation in the fight against the U.S. to defend human justice and conscience and to dismember the U.S. imperialists, the root cause of all sorts of evils and kingpin of injustice, are sharpening bayonets not only in the U.S. mainland but in all other parts of the world.

The just struggle to be waged by them across the world will bring achievements thousands of times greater than the hacking attack on the Sony Pictures Entertainment.

It is the truth and inevitability of the historical development that justice prevails over injustice.

Whoever challenges justice by toeing the line of the biggest criminal U.S. will never be able to escape merciless punishment as it is the target of the sacred drive for cooperation in the fight against the U.S.

The U.S. should reflect on its evil doings that put itself in such a trouble, apologize to the Koreans and other people of the world and should not dare pull up others.

© 2014 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC

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Russia bails out bank following ruble slide

MOSCOW — Russia has bailed out a mid-sized bank for about $500 million to save it from bankruptcy— a clear sign that the slide in the value of the ruble in the wake of sliding oil prices is straining the banking system.

The Central Bank said Monday it will give Trust Bank 30 billion rubles that will allow it to continue operating as normal.

It will also place Trust Bank under its own supervision until it finds an investor. Major Russian banks said they had no interest in acquiring Trust, a top 30 Russian bank with about $5 billion in assets.

The problems afflicting Trust Bank follow a tumultuous period for the ruble, which is one of the worst-performing currencies this year, along with the Ukrainian hryvnia. A respected former Russian finance minister warned that the country is headed for "a full-blown economic crisis."

It has fallen by a half this year as oil prices have fallen. Last week, its descent gathered pace, sparking a consumer boom as worried Russians flocked to shops to buy cars and durable goods before prices rose further.

Still, deputy Prime Minister Igor Shuvalov said Monday he expects the ruble to rally following some signs of stability over the past few trading sessions. Following moderate gains at the end of last week, the ruble surged 8 percent in early evening trading on Monday, at 54 against the U.S. dollar.

He also said the government is not planning to introduce currency controls on Russian companies. The ruble's collapse has stirred rumors that Russia could introduce capital and currency controls to keep the rate high.

The Russian currency has been battered by low oil prices, now around $60 a barrel, down from a June high of $107, as well as the sanctions that the West imposed on Russia for its involvement in Ukraine and the annexation of Crimea.

The fall in oil prices is one of the major reasons why Russia is expected to fall into recession next year.

Alexei Kudrin, a well-respected former Russian finance minister, said oil prices weren't the main reason why the ruble has suffered this year. In comments to reporters, he said low oil prices account for as little as a quarter of the ruble decline whereas the sanctions imposed on the country could be contributing up to 40 percent of the collapse.

Kudrin warned that Russia will enter recession even if oil prices are as high as $80.

"We are entering or have already entered a full-blown economic crisis, and we're going to feel it to the full next year," Kudrin said. "This is a serious challenge to the economy."

President Vladimir Putin has overseen a full decade of economic growth boosted by high oil prices and the expanding consumer market, but the collapse of the ruble and the rise of inflation could pose a threat to consumer expectations next year.

For the first time since 2000, according to Kudrin, disposable income in Russia is going to drop signify

cantly, by about 4 percent.

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How Obama took Sony's crisis from bad to worse

If there are such a thing as textbooks in the field of crisis management, the Sony Pictures hack might end up in the chapter labeled "Worst Case Scenario."

But as much as Sony seemed to mishandle its sorry situation in recent days, the severity of the circumstances Sony faced are so extreme that it begs the question of whether anyone could have handled it better. Every step of the way Sony has been faced with no-win situations and just plain bad luck.

Just when things couldn't have looked any worse for the studio, President Obama turned sharply critical of Sony in a news conference Friday, second-guessing its decision to withdraw "The Interview" from theaters.

Why he bothered to pass judgment on Sony at all may have come as some surprise at a time when assembled reporters were likely more interested in hearing more about the investigation into North Korea's involvement, as well as the U.S. response.

Cynics might suggest targeting Sony gave Obama something to distract from the precious little he offered on what he knew or planned to do next. Blaming the studio also shifts already mounting criticism that the U.S. lacks any coherent cybersecurity strategies despite the growing number of attacks pounding not only the government but many other corporations.

In other words, think of the Obama subtext thusly: "Cut me some slack on not defining what exactly the "proportionate' response to North Korea will be because, hey, it's not my fault (cue finger-point at Sony)."

There's also a more generous interpretation of the president's motives. Second-term presidents are more inclined to follow their own convictions, and a constitutional scholar like Obama may genuinely take offense at Sony not doing more to stand up for the First Amendment.

It's interesting to note this isn't the first time this winter that Obama has inserted himself this forcefully and unexpectedly into the media business. Just think of the tough stance he took last month pressuring the FCC to enforce net neutrality.

But whereas that probably won't do much to alter the course of a battle that's probably going to play out on Capitol Hill for at least another year, Obama's Sony remarks ratcheted up the pressure on the studio to get this movie released somehow someway soon.

What happened after Obama's comments didn't help matters, and here Sony only has itself to blame. Sony Pictures chairman Michael Lynton gave an interview to CNN's Fareed Zakaria in which he appeared to rebut the president's assertion that Sony didn't consult with the White House with regard to yanking the film. But what wasn't clear from his remarks was that the consultation with the administration occurred before the decision to pull the film.

That same day Obama sat down with CNN's Candy Crowley for a separate interview in which he made clear the White House wasn't consulted specifically about pulling the film. The mere fact that the president saw fit to even address Lynton's remarks is bad enough, but Obama's clarification made Lynton seem to have engaged in obfuscation. PR 101: Getting caught in a he said/she said with the President of the United States is not generally a good idea (unless you're John Boehner).

In interviews that day on CNN and NPR, Lynton also made clear that Sony was actively seeking new digital distribution alternatives for "The Interview." That represented a contradiction in the stance the studio had taken just days earlier when emphatically stating that the movie was "canceled" and not to appear on theaters or any other kind of platform. Whether Sony didn't intend to shut the door so tight on future options for "The Interview" or Obama simply made it impossible to maintain that stance going forward is anybody's guess.

What's strange about this new focus on finding a digital distribution alternative is that while Sony gets to avoid the scorn of Obama and many in Hollywood for not upholding the First Amendment, it puts the studio right back in the crosshairs of the hackers the second a release plan gets announced. Getting criticized by the president may not be fun for Lynton but it sure sounds better than suffering yet another round of 'Read My Private Emails.'

Let's not forget the hackers purport to have plenty of "gifts" they seemed more than prepared to put under his Christmas tree come Dec. 25th. Perhaps after withstanding nine previous data dumps, you get so numb you don't even feel it when the leak total climbs into double digits.

If Sony gained any ground Friday, it was probably in shifting the blame for its decision to the exhibitors, and rightfully so. It's an oversimplifcation to put Sony and Sony alone in the hot seat because had the major theater chains agreed to screen the movie, "The Interview" would be good to go for Dec. 25.

© 2014 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC

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Problems surround Alibaba Pictures as it reveals $57 million loss

HONG KONG -- Alibaba Pictures Group, the film investment and distribution arm of Chinese e-commerce giant Alibaba, has revealed losses of US$57.1 million (HK$443 million).

The figures amount to a painful house cleaning exercise and a demonstration of the many hazards of doing business in the Chinese film industry.

The losses were incurred in the six months to June and reflect impairments to the value of some of the company's film and TV properties, as well as a restatement of the value of some derivative financial instruments.

Alibaba took control of the Hong Kong-listed company, through a 60% share stake costing US$775 million (HK$6 billion), at the end of June and changed the company's name from Chinavision to Alibaba Pictures Group. The losses relate to the period before Alibaba's control, but were only discovered after takeover, in August, prompting an investigation by auditors that only ended recently.

Revenues dropped from US$61.2 million (HK$474 million) in the first half of 2013 to just US$14.6 million (HK$113 million). The write-offs amounted to US$48.9 million (HK$379 million) while trading losses of US$8.36 million (HK$64.8 million) added a further burden.

The company revealed the numerous difficulties encountered in the past year as it tried to muscle its way into the forefront of the business.

Among the $9.68 million (HK$75 million) of film-specific losses, the company revealed a costly "restriction imposed by the PRC authority on the broadcasting of a film in the PRC;" and a "dispute between a film distributor and a film producer on profit sharing of a film in which the group has invested." This is understood to be a reference to Chinavision's stake in Stephen Chow's Feb 2013 $200 million blockbuster "Journey To The West," which was distributed by Huayi Brothers Media.

Notes to the accounts reveal that part of Alibaba Pictures Group's array of deals with prominent regional film makers is also coming undone.

As Chinavision, it paid US$8.14 million (RMB50 million) for Stephen Chow to offer it investment positions in five future movies. But it chose not to go ahead with any of them and so forfeited its deposit.

In March this year, it signed a deal with Taiwan-based producer Angie Chai to deliver a slate of films involving writer-director Giddens Ko. However that is treated as a loss in the June accounts.

More happily, in May this year it also paid RMB50 million to Wong Kar-wai as down payments on five movies for Wong or his associates to deliver. Alibaba Pictures says that it expects one of those to go ahead before June 2015 - Wong recently revealed a project involving a monk travelling to India -- and has restated that investment as a current asset.

Alibaba Pictures also bought mainland Chinese distribution rights to two Hong Kong movies, actioner "Rise of A Legend" and comedy "Temporary Family."

Shares in the group began trading again Monday, after months of suspension, and in early trade rose 2% to HK$1.64 apiece.

© 2014 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC

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Stocks mostly higher in morning trading, extending rally

Major stock indexes edged mostly higher Monday morning but the gains were held back by discouraging data on U.S. home sales and a deepening slide in oil prices, which hammered energy stocks. Stocks have notched gains the past three trading days.

KEEPING SCORE: The Dow Jones industrial average rose 68 points, or 0.4 percent, to 17,873 as of 11:12 a.m. Eastern time. The Standard & Poor's 500 index was flat at 2,070. The Nasdaq composite was up a point at 4,766.

SANTA RALLY: Stocks are continuing a pre-Christmas advance, which traders often refer to as a "Santa" rally. Major indexes ended last week on a strong note, finishing higher three days in a row. The Dow and S&P 500 are both up for the month, while the Nasdaq is down.

THE QUOTE: "With the Dow being up substantially more than the S&P 500, I would tend to say what's holding back the S&P is more related to its makeup than it is a problem related to investors' perception or concerns," said Sam Stovall, U.S. equity strategist at S&P Capital IQ. "We're firmly in a Santa Claus rally."

SECTOR WATCH: Seven of the 10 sectors in the S&P 500 index rose, led by technology stocks. Semiconductor services company KLA-Tencor rose $1.84, or 2.6 percent, to $71.56. Energy stocks declined. The sector is down about 10 percent this year.

SHELL GAME: Shares in Caesar's Entertainment jumped 19.9 percent on news the casino operator will buy an affiliate in a bid to smooth the reorganization of another struggling division and balance its debt load. The stock gained $2.69 to $16.18.

HOUSING SPUTTERS: The National Association of Realtors reported that sales of previously occupied homes fell 6.1 percent last month to a seasonally adjusted annual rate of 4.93 million. That's the slowest pace in six months. Over the past 12 months, sales have risen 2.1 percent. The disappointing data sent shares in most homebuilders lower. NVR led among the decliners, sliding $31.26, or 2.5 percent, to $1,205.10.

PUSHING BACK: Shares in drugmaker Gilead Sciences fell 13 percent after pharmacy benefits manager Express Scripts said it will no longer cover two of Gilead's hepatitis C drugs as part of an effort to battle the high cost of treatment for the disease. Gilead slid $14.15 to $94.32.

EYE ON OIL: Benchmark U.S. crude fell $1.67, or 2.9 percent, to $55.85 a barrel. Oil peaked at $107 a barrel in June but has plunged since then due to weak demand and abundant supplies, especially after Saudi Arabia and other OPEC members agreed to maintain production levels.

ENERGY SLUMP: Several oil production and exploration companies tumbled as the slide in oil prices deepened. Nabors Industries fell 95 cents, or 7 percent, to $12.68, while Chesapeake Energy slid $1.31, or 6.6 percent, to $18.55. Range Resources shed $3.33, or 5.6 percent, to $56.54. Southwestern Energy dropped $1.76, or 5.7 percent, to $29.24.

OVERSEAS MARKETS: In Europe, Britain's FTSE 100 rose 1.2 percent, while Germany's DAX rose 0.6 percent. France's CAC 40 gained 0.1 percent. In Asia, China's Shanghai Composite Index rose 0.6 percent, while South Korea's Kospi added 0.7 percent. Hong Kong's Hang Seng rose 1.3 percent, while Japan's Nikkei 225 rose 0.1 percent.

BONDS: U.S. government bond prices fell. The yield on the 10-year Treasury note rose to 2.18 percent from 2.17 percent late Friday.

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Express Scripts turns to AbbVie in huge hepatitis C deal

The nation's largest pharmacy benefits manager is throwing its weight into a fight over the high cost of treating hepatitis C, saying it will cover a new drug from AbbVie while pulling back on more expensive options from rival drugmakers.

Express Scripts Holding Co. said Monday it will no longer cover Sovaldi and Harvoni from Gilead Sciences Inc. or Johnson & Johnson's Olysio starting Jan. 1, except under limited circumstances. AbbVie Inc.'s Viekira Pak, approved only Friday, will become the preferred treatment for patients who have genotype 1 hepatitis C, the most common form of the liver-destroying virus.

Express Scripts will still cover the other drugs if patients have already started treatment or if the patient has a clinical exception and needs those particular drugs.

It also will still cover Sovaldi and Olysio for patients with other genotypes of hepatitis C and advanced liver disease.

The three drugs that will no longer be covered are part of a wave of effective but expensive treatments that hit the market in the past year. Patients and insurers have been hoping that growing competition will help reduce prices or give payers like Express Scripts some leverage to negotiate better rates.

Express Scripts Chief Medical Officer Dr. Steve Miller said that leverage can only be used if competing drugs are considered at least clinically equivalent, meaning they are as good or better than the more expensive treatments. Express Scripts said a committee of independent experts has verified this for the pharmacy benefits manager.

Express Scripts manages prescription drug benefits for about 85 million people, and this decision affects about 25 million of its commercial customers. But that total could grow.

Miller said other customers have expressed interest in this approach.

Pharmacy benefits managers, or PBMs, run prescription drug plans for employers, insurers and other customers. They process mail-order prescriptions and handle bills for prescriptions filled at retail pharmacies.

Sovaldi, which was approved late last year, costs $84,000 for a course of treatment.

That price can rise up to $160,000 when Olysio is paired with it, Dr. Miller said.

Harvoni was approved in October, and Gilead has said the new drug will cost $94,500 for a 12-week supply.

Gilead executives have said their drugs are cost effective, despite their large upfront cost, because they cure more patients in less time than older drugs, and prevent the catastrophic problems for patients like liver failure.

Representatives of Gilead and Johnson & Johnson did not immediately return calls from The Associated Press seeking comment Monday morning.

AbbVie has said the shortest approved course of therapy for Viekira, 12 weeks, will cost about $83,320 at wholesale prices.

An Express Scripts spokesman said his company received a "significant discount" for its coverage of Viekira Pak off of that price, but he declined to offer details.

Shares of Gilead sank nearly 11 percent, or $11.67, to $96.78 Monday morning, and AbbVie also slipped 75 cents to $66.96 while broader indexes rose slightly.

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Springfield TV pioneer Putnam dies

SPRINGFIELD, Mass. — William Lowell Putnam, who founded the Springfield area's first television station and the first licensed UHF television station in the United States, has died.

WWLP-TV said in a statement that Putnam died Sunday. He was 90.

Putnam was also a decorated World War II veteran, a Harvard University graduate, an accomplished mountain climber, and for 26 years, the sole trustee of the Lowell Observatory in Flagstaff, Arizona, founded by his great-uncle, Percival Lowell.

As a member of the 10th Mountain Division, Putnam served in the Aleutians and Italy during World War II, rising to the rank of first lieutenant and earning two Purple Hearts, a Silver Star and a Bronze Star.

After earning a geology degree from Harvard, he founded WWLP in 1953. He sold the station in the 1980s.

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Massachusetts gas prices down another 11 cents

BOSTON — The holidays are a little happier for Massachusetts residents who are seeing another steep drop in gas prices.

AAA Southern New England reports Monday that the price of a gallon of self-serve, regular dropped another 11 cents in the past week to an average of $2.57.

That's 30 cents lower per gallon than a month ago and 87 cents lower than at the same time last year.

Yet despite the sharp drop, the price in Massachusetts is 18 cents higher than the national average.

AAA found self-serve, regular selling in Massachusetts for as low as $2.39 per gallon to as high as $2.79.

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Stocks mostly higher at midday, extending advance

Major stock indexes edged mostly higher Monday but the gains were held back by discouraging data on U.S. home sales and a deepening slide in oil prices.

The market is coming off a big advance last week, which gave the Standard & Poor's 500 its second-biggest weekly gain this year.

The Dow Jones industrial average rose 78 points, or 0.4 percent, to 17,873 as of 11:45 a.m. Eastern. The S&P 500 was flat at 2,070. The Nasdaq composite rose a point to 4,766.

The price of oil fell $1.74 to $55.39 a barrel.

Homebuilders fell following a report that sales of previously occupied homes fell last month to the slowest pace in six months.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.18 percent.

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