Danny Puff

WASHINGTON (AP) U.S. shoppers spent cautiously this holiday season, a disappointment for retailers who slashed prices to lure people into stores and now must hope for a post-Christmas burst of spending.

Sales of electronics, clothing, jewelry and home goods in the two months before Christmas increased 0.7 percent compared with last year, according to the MasterCard Advisors SpendingPulse report.

That was below the healthy 3 to 4 percent growth that analysts had expected and it was the worst year-over-year performance since 2008, when spending shrank sharply during the Great Recession. In 2011, retail sales climbed 4 to 5 percent during November and December, according to ShopperTrak.

This year's shopping season was marred by bad weather and rising uncertainty about the economy in the face of possible tax hikes and spending cuts early next year. Some analysts say the massacre of schoolchildren in Newtown, Conn., earlier this month may also have chipped away at shoppers' enthusiasm.

Retailers still have time to make up lost ground. The final week of December accounts for about 15 percent of the month's sales, said Michael McNamara, vice president for research and analysis at MasterCard Advisors SpendingPulse.

Still, this season's weak sales could have repercussions for 2013, McNamara said. Retailers will make fewer orders to restock their shelves, and discounts will hurt their profitability. Wholesalers will buy fewer goods and orders to factories will likely drop in the coming months.

Steep discounts weren't enough to get people into stores, said Marshal Cohen, chief analyst at the market research firm NPD Inc.

"A lot of the Christmas spirit was left behind way back in Black Friday weekend," Cohen said, referring to the traditional retail rush the day after Thanksgiving. "We had one reason after another for consumers to say, 'I'm going to stick to my list and not go beyond it.'"

Holiday sales are a crucial indicator of the economy's strength. November and December account for up to 40 percent of annual sales for many retailers. If those sales don't materialize, stores are forced to offer steeper discounts. That's a boon for shoppers, but it cuts into stores' profits.

Spending by consumers accounts for 70 percent of overall economic activity, so the eight-week period encompassed by the SpendingPulse data is seen as a critical time not just for retailers but for manufacturers, wholesalers and companies at every other point along the supply chain.

The SpendingPulse data released Tuesday, which captures sales from Oct. 28 through Dec. 24 across all payment methods, is the first major snapshot of holiday retail sales. A clearer picture will emerge next week as retailers like Macy's and Target report revenue from stores open for at least a year. That sales measure is widely watched in the retail industry because it excludes revenue from stores that recently opened or closed, which can be volatile.

In the run-up to Christmas, analysts blamed bad weather for putting a damper on shopping. In late October, Superstorm Sandy battered the Northeast and mid-Atlantic states, which account for 24 percent of U.S. retail sales.

Shopping picked up in the second half of November, but then the threat of the country falling off a "fiscal cliff" gained strength, throwing consumers off track once again.

Lawmakers have yet to reach a deal that would prevent tax increases and government spending cuts set to take effect at the beginning of 2013. If the cuts and tax hikes kick in and stay in place for months, the Congressional Budget Office says the nation could fall back into recession.

Shopping over the past two months was weakest in areas affected by Sandy and a more recent winter storm in the Midwest. Sales declined by 3.9 percent in the mid-Atlantic and 1.4 percent in the Northeast compared with last year. They rose 0.9 percent in the north central part of the country.

The West and South posted gains of between 2 percent and 3 percent, still weaker than the 3 percent to 4 percent increases expected by many retail analysts.

Online sales, typically a bright spot, grew only 8.4 percent from Oct. 28 through Saturday, according to SpendingPulse. That's a dramatic slowdown from the online sales growth of 15 to 17 percent seen in the prior 18-month period, according to the data service.

Online sales did enjoy a modest boost after the recent snowstorm that hit the Midwest, McNamara said. Online sales make up about 10 percent of total holiday business.

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Daniel Wagner can be reached at www.twitter.com/wagnerreports.

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WASHINGTON (AP) Visitors coming to the nation's capital for President Barack Obama's second inauguration can't stay in the one place President Ronald Reagan's family once called an eight-star hotel. That spot is the White House, and it's booked for the next four years.

Still, inauguration-goers have a range of lodging options from crashing on a friend's couch to reasonably priced rooms to ones that cost thousands of dollars a night.

With second inaugurations tending to draw fewer spectators, finding a place to stay in Washington won't be nearly as difficult as in 2009.

City officials are expecting 600,000 to 800,000 visitors for the Jan. 21 inauguration, far less than the 1.8 million people who flooded the National Mall four years ago to witness the inauguration of America's first black president. Back then, some hotels sold out months in advance and city residents rented out their homes for hundreds of dollars a night. This time, hotels say they're filling up more slowly, with rooms still available and prices at or slightly below where they were four years ago.

"Very few hotels are actually sold out at this point, so there's a lot of availability," said Elliott Ferguson, CEO of the tourism bureau Destination DC, who added that he expected demand to pick up after Christmas.

In 2009, hotel occupancy in the city for the night before the inauguration was 98 percent, and visitors paid an average daily rate of more than $600 that night, according to STR, a company that tracks hotel data. This time, some hotels still have half their rooms available. As a result, some establishments have relaxed minimum stays from four nights to three and could drop prices closer to the time of the inauguration if demand does not increase.

Despite the muted enthusiasm, many of the city's posh hotels are still offering pricy packages. Visitors with an unlimited budget can check in to accommodations almost as grand and historic as the White House.

At The Willard hotel, about a block from the White House, rooms were still available starting at more than $1,100 a night with a four-night minimum. That's a far cry from the bill paid by President Abraham Lincoln when he checked out after his 1861 inauguration and paid $773.75 for a stay of more than a week.

At the Park Hyatt hotel in northwest Washington, where rooms start at $849 a night with a four-night minimum stay, the presidential suite is still available. For the 57th presidential inauguration next month, the hotel is charging $57,000 for a four-night package in the suite that includes butler service. And no one has yet booked $100,000 packages at the Fairmont hotel or the Ritz-Carlton.

A number of the city's luxury hotels plan special treats for guests, some of whom will be paying two to five times as much to stay during the inauguration compared with staying in the same room a week before. At the Ritz-Carlton, for example, where rooms start at about $1,100 per day, guests will get to bring home commemorative pillowcases embroidered with the official inauguration seal and their initials.

There are options for visitors looking to spend less, too, though some wallet-friendly choices have filled quickly.

Rooms at HI-DC, a hostel in downtown Washington, were sold out the day after the Nov. 6 election, with a bed in a dorm room going for $50 a night and private rooms for $150. With all the rooms sold, the hostel is finalizing plans for an election trivia night for guests.

Aunt Bea's Little White House, a six-room bed and breakfast in northeast Washington, still had two rooms available the week before Christmas, with rates starting at $225 a night. Innkeeper Gerald Duval said that included a bottle of champagne and a commemorative coin. There'll also be red-and-white bunting on the home's porch along with cutouts of the president and first lady.

Farther from downtown, the Best Western Plus hotel in Rockville, Md., was about 80 percent full with rooms at about $180 a night, down from a $209 starting rate. Director of Sales Ron Wallach said the hotel targeted some groups before the election, including students, journalists and the Secret Service, in order to fill its rooms.

Other travelers looking for budget-friendly prices may have success with websites like Craigslist or Airbnb, where homeowners offer their places for a price. More than 200 Craigslist housing posts in the area included the word "inauguration." Airbnb said it expected approximately 2,000 people to stay in Washington during the inauguration using its site.

Other travelers have told friends and family living in the area to plan on having guests. Lauren Hines and her husband had three people stay at their small Capitol Hill apartment during the 2009 inauguration, so many that one slept in a hallway. She and her husband now live in nearby Alexandria, Va., and planned to host her father-in-law, and maybe her mother-in-law, from Ohio. Hines said they didn't even consider a hotel.

"They know that they've always got a place with us," she said.

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Follow Jessica Gresko at http://twitter.com/jessicagresko

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LONDON (Reuters) - A paralyzed woman has been able to feed herself chocolate and move everyday items using a robotic arm directly controlled by thought, showing a level of agility and control approaching that of a human limb.

Jan Scheuermann, 53, from Pittsburgh, was diagnosed with a degenerative brain disorder 13 years ago and is paralyzed from the neck down.

"It's so cool," said Scheuermann during a news conference. "I'm moving things. I have not moved things for about 10 years ... It's not a matter of thinking which direction anymore it's just a matter of thinking I want to do that'."

She was shown feeding herself string cheese and chocolate unaided as well as moving a series of objects in tests designed for recovering stroke victims, and she was able to do it with speeds comparable to the able bodied.

Experts are calling it a remarkable step forward for prosthetics controlled directly by the brain. Other systems have already allowed paralyzed patients to type or write in freehand simply by thinking about the letters they want.

In the past month, researchers in Switzerland also used electrodes implanted directly on the retina to enable a blind patient to read.

The development of brain-machine interfaces is moving quickly and scientists predict the technology could eventually be used to bypass nerve damage and re-awaken a person's own paralyzed muscles.

In the meantime, they say, systems like the one developed by the U.S. researchers could be paired with robotic "exoskeletons" that allow paraplegics and quadriplegics to walk.

For Scheuermann, the experience has already been transforming.

"It's given her a renewed purpose," Michael Boninger, who worked on the study published in The Lancet, told Reuters. "On the first day that we had her move the arm, there was this amazing smile of joy. She could think about moving her wrist and something happened."

COMPLEX ALGORITHM

The research team from the University of Pittsburgh Medical Center implanted two microelectrode devices into the woman's left motor cortex, the part of the brain that initiates movement.

The medics used a real-time brain scanning technique called functional magnetic resonance imaging to find the exact part of the brain that lit up after the patient was asked to think about moving her now unresponsive arms.

The electrodes were connected to the robotic hand via a computer running a complex algorithm to translate the signals that mimics the way an unimpaired brain controls healthy limbs.

"These electrodes are remarkable devices in that they are very small," Boninger said. "You can't buy them in Radio Shack."

But Boninger said the way the algorithm operates is the main advance. Accurately translating brain signals has been one of the biggest challenges in mind-controlled prosthetics.

"There is no limit now to decoding human motion," he said. "It gets more complex when you work on parts like the hand, but I think that, once you can tap into desired motion in the brain, then how that motion is effected has a wide range of possibilities."

It took weeks of training for Scheuermann to master control of the hand, but she was able to move it after just two days, and over time she completed tasks - such as picking up objects, orientating them, and moving them to a target position - with a 91.6 percent success rate. Her speed increased with practice.

The researchers plan to incorporate wireless technology to remove the need for a wired connection between the patient's head and the prosthesis.

They also believe a sensory loop could be added that gives feedback to the brain, allowing the user to tell the difference between hot and cold, or smooth and rough surfaces.

Gr goire Courtine, at the Swiss Federal Institute of Technology in Lausanne, hailed the project. "This bioinspired brain-machine interface is a remarkable technological and biomedical achievement."

"Though plenty of challenges lie ahead, these sorts of systems are rapidly approaching the point of clinical fruition," Courtine, who was not involved in the study, said in a comment piece in the Lancet linked to the study.

ETHICAL QUESTIONS

Although using technology to restore movement, sight or hearing in the disabled would for many seem uncontroversial, some disability rights groups and ethicists are wary.

They argue that restoring hearing, for instance, could fuel a prejudice that a deaf life is less rich, or less well lived.

Andy Miah, a professor at the University of the West of Scotland who has written extensively about human enhancement in the context of the Paralympics, says it is far from straightforward.

"For instance, a few years ago, there was a case of a deaf lesbian couple who sought to use in vitro fertilization to select for deafness," he said.

"They argued that absence of hearing is precisely not an impairment, but allows access to a rich community."

The ethics become more complex with the prospect of using these technologies to enhance the able-bodied.

"It's quite likely that therapy is the back door to enhancement in these kinds of technological interventions," says Miah. "People will question whether this is desirable, but we already live in a society that tolerates such modifications.

"Laser eye surgery interventions have grown astronomically over the last decade and nobody complains that it is making people superhuman."

(Editing by Alison Williams)

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SEOUL (Reuters) - Samsung Electronics said on Wednesday it had filed a complaint against Ericsson with the U.S. International Trade Commission (ITC), requesting a U.S. import ban and sales ban on some of the Swedish telecoms equipment maker's products.

The action taken on Friday by the world's top smartphone maker, which accused Ericsson of breaching seven of its patents, came after Ericsson requested an ITC U.S. import ban on Samsung products and sued the South Korean firm for patent infringement.

"We have sought to negotiate with Ericsson in good faith. However, Ericsson has proven unwilling to continue such negotiations by making unreasonable claims, which it is now trying to enforce in court," Samsung Electronics said in a statement.

"The accused Ericsson products include telecommunications networking equipment, such as base stations," Samsung said.

With Ericsson suffering a big drop in sales at its network unit, down 17 percent in the third quarter, it is turning to the courts to maintain its patent income, part of a wider trend where big technology names are fiercely protecting intellectual property as global sales of tablets and smartphones boom.

Ericsson is facing a growing challenge from Samsung Electronics, a smaller player in the network equipment market.

"I'm sure that at this point, no one in the industry would underestimate Samsung's ability to become a significant player, if not the leader, in a new segment of the overall market for telecommunications hardware," Florian Mueller, a patent expert, said in a blog posting on Monday.

"This certainly adds a more strategic dimension to the Ericsson-Samsung dispute."

Samsung Electronics and its arch smartphone rival Apple Inc have been also locked in patent disputes in at least 10 countries as they vie to dominate the mobile market and win over customers with their latest gadgets.

The European Commission on Friday charged Samsung Electronics with abusing its dominant position in seeking to bar rival Apple from using a patent deemed essential to mobile phone use.

Samsung Electronics shares were trading up 1.3 percent, outperforming the wider market's 0.7 percent gain as of 0037 GMT.

(Reporting by Hyunjoo Jin; Editing by Robert Birsel)

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NEW YORK (Reuters) - An outage at one of Amazon's web service centers hit users of Netflix Inc's streaming video service on Christmas Eve and was not fully resolved until Christmas Day, a spokesman for the movie rental company said on Tuesday.

The outage impacted Netflix subscribers across Canada, Latin America and the United States, and affected various devices that enable users to stream movies and television shows from home, Netflix spokesman Joris Evers said. Such devices range from gaming consoles like the Nintendo Wii and PlayStation 3 to Blu-ray DVD players.

Netflix, which is based in Los Gatos, California, has 30 million streaming subscribers worldwide, of which more than 27 million are in the Americas region that was exposed to the outage and could have potentially been affected, Evers said.

Evers said the issue was the result of an outage at an Amazon Web Services' cloud computing center in Virginia and started at about 12:30 p.m. PST (2030 GMT) on Monday and was fully restored before 8:00 a.m. PST Tuesday morning, although streaming was available for most users by 11:00 p.m. PST on Monday.

The event marks the latest in a series of outages from Amazon Web Services, with one occurring in April of last year that knocked out such sites as Reddit and Foursquare.

"We are investigating exactly what happened and how it could have been prevented," Evers of Netflix said.

"We are happy that people opening gifts of Netflix or Netflix capable devices can watch TV shows and movies and apologize for any inconvenience caused last night," he added.

Officials at Amazon Web Services were not available for comment. Evers, the Netflix spokesman, declined to comment on the company's contracts with Amazon.

(Reporting by Sam Forgione; Editing by Leslie Gevirtz and Matt Driskill)

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HOUSTON (AP) Former President George H.W. Bush spent Christmas in a Houston hospital with his wife, Barbara, and other relatives who planned to treat him to a special holiday meal.

Bush's son, Neil, and his wife also visited on Tuesday, and one of Bush's grandsons was planning to stop by as well, said Jim McGrath, Bush's spokesman in Houston.

The 88-year-old has been in the hospital since Nov. 23 with a lingering, bronchitis-like cough. A hospital spokesman had said Bush was likely to be released to spend Christmas at home, but then McGrath said the former president developed a fever.

Doctors remain "cautiously optimistic" Bush will recover, but want to keep him in the hospital while they help him build up his strength and balance his medications, McGrath said.

On Christmas, the Bush family normally eats at Gigi's Asian Bistro in Houston's Galleria neighborhood, McGrath said. There were plans to pick up food at the upscale restaurant and bring the meal to the hospital.

Bush has been receiving visitors for weeks, including two by his son, former President George W. Bush, and one by Jeb Bush, former governor of Florida.

Bush and his wife reside in Houston during the winter, and spend their summers at a home in Kennebunkport, Maine.

The former president was a naval aviator in World War II at one point the youngest in the Navy and was shot down over the Pacific. He achieved notoriety in retirement for skydiving on at least three of his birthdays since leaving the White House in 1992.

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Those hoping the United States Senate may get a little less gray and a bit more celebrity-studded won't be getting their Christmas miracle today.

Despite speculation, Ben Affleck announced late Monday he would not go after John Kerry's Senate seat in his native Massachusetts if the senator is confirmed as secretary of state.

The actor, who has been an increasingly popular presence in the political world recently, wrote on his Facebook page: "I love Massachusetts and our political process, but I am not running for office."

Chatter around a possible run went into overdrive Sunday when during an appearance on CBS' "Face the Nation" the Cambridge native decidedly did not rule it out saying, "One never knows. I'm not one to get into conjecture."

In the post he mentions his charity work in the Congo, something he discussed on ABC's This Week as well as testifying before Congress, as one of the reasons he's not interested in entering Bay State politics.

"Right now it's a privilege to spend my time working with Eastern Congo Initiative (ECI), supporting our veterans, drawing attention to the great many who go hungry in the U.S. everyday and using filmmaking to entertain and foster discussion about issues like our relationship to Iran," Affleck said.

The movie star added his praise of Kerry, writing: "We are about to get a great Secretary of State."

"There are some phenomenal candidates in Massachusetts for his Senate seat. I look forward to an amazing campaign," Affleck added.

As for some of those candidates on the list, Gov. Deval Patrick is likely to appoint a replacement to fill Kerry's seat in the interim period. Former Massachusetts governor and Democratic presidential nominee Michael Dukakis, as well as Vicki Kennedy, the widow of Ted Kennedy, are on Patrick's list, according to reports.

Scott Brown, who lost to Elizabeth Warren in November, is widely believed to be the likely Republican nominee and is viewed as a strong contender. On the Democratic side there are several names often mentioned currently in the U.S. House of Representatives: Edward Markey, Michael Capuano, and Stephen Lynch. Other possibilities include Martha Coakley, the state attorney general who originally lost to Brown in the 2010 special election held after Kennedy's death, which Brown won.

Patrick has said he won't appoint anyone until Kerry is confirmed at state.

ABC News' Elizabeth Hartfield contributed to this report.

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VATICAN CITY (AP) In his Christmas message to the world Tuesday, Pope Benedict XVI called for an end to the slaughter in Syria and for more meaningful negotiations between Israelis and Palestinians, while encouraging more religious freedom under China's new leaders.

Delivering the traditional speech from the central balcony of St. Peter's Basilica, Benedict also encouraged Arab spring nations, especially Egypt, to build just and respectful societies.

The pope prayed that China's new leadership may "esteem the contribution of the religions, in respect for each other" to help build a "fraternal society for the benefit of that noble people."

It was a clear reference to the Chinese government's often harsh treatment of Catholics loyal to the pontiff instead of to the state-sanctioned church. Earlier this month, the Vatican refused to accept the decision by Chinese authorities to revoke the title of a Shanghai bishop, who had been appointed in a rare show of consensus between the Holy See and China.

As the 85-year-old pontiff, bundled up in an ermine-trimmed red cape, gingerly stepped foot on the balcony, the pilgrims, tourists and Romans below backing St. Peter's Square erupted in cheers.

Less than 12 hours earlier, Benedict had led a two-hour long Christmas Eve ceremony in the basilica. He sounded hoarse and looked weary as he read his Christmas message and then holiday greetings in 65 languages.

In his "Urbi et Orbi" speech, which traditionally reviews world events and global challenges, Benedict prayed that "peace spring up for the people of Syria, deeply wounded and divided by a conflict that does not spare even the defenseless and reaps innocent victims."

He called for easier access to help refugees and for "dialogue in the pursuit of a political solution to the conflict."

Benedict prayed that God "grant Israelis and Palestinians courage to end long years of conflict and division, and to embark resolutely on the path to negotiation."

Israel, backed by the United States, opposed the Palestinian statehood bid, saying it was a ploy to bypass negotiations, something the Palestinians deny. Talks stalled four years ago.

Senior Palestinian official Saeb Erekat said that in a meeting with the pope last week, Palestinian President Mahmoud Abbas "emphasized our total readiness to resume negotiations." The Palestinians have not dropped their demand that Israel first stop settlement activities before returning to the negotiating table.

Hours earlier, in the ancient Bethlehem church built over the site where tradition holds Jesus was born, candles illuminated the sacred site and the joyous sound of prayer filled its overflowing halls.

Overcast skies and a cold wind in the Holy Land didn't dampen the spirits of worshippers in the biblical West Bank town. Bells pealed and long lines formed inside the fourth-century Church of the Nativity complex as Christian faithful waited to see the grotto that is Jesus' traditional birthplace.

Duncan Hardock, 24, a writer from MacLean, Virginia, traveled to Bethlehem from the republic of Georgia, where he had been teaching English. After passing through the separation barrier Israel built to ward off West Bank attackers, he walked to Bethlehem's Manger Square where the church stands.

"I feel we got to see both sides of Bethlehem in a really short period of time," Hardock said. "On our walk from the wall, we got to see the lonesome, closed side of Bethlehem ... But the moment we got into town, we're suddenly in the middle of the party."

Bethlehem lies 10 kilometers (6 miles) south of Jerusalem. Entry to the city is controlled by Israel, which occupied the West Bank in 1967.

For those who couldn't fit into the cavernous Bethlehem church, a loudspeaker outside broadcast the Christmas day service to hundreds of faithful in the square.

Their Palestinian hosts, who welcome this holiday as the high point of their city's year, were especially joyous this season, proud of the United Nations' recognition of an independent state of Palestine just last month.

"From this holy place, I invite politicians and men of good will to work with determination for peace and reconciliation that encompasses Palestine and Israel in the midst of all the suffering in the Middle East," said the top Roman Catholic cleric in the Holy Land, Latin Patriarch Fouad Twal in his annual address.

Back at the Vatican, Benedict offered encouragement to countries after the Arab spring of democracy protests. He had a special word for Egypt, "blessed by the childhood of Jesus."

Without citing the tumultuous politics and clashes in the region, he urged the North African region to build societies "founded on justice and respect for the dignity of every person."

Benedict prayed for the return of peace in Mali and harmony in Nigeria, where, he recalled "savage acts of terrorism continue to reap victims, particularly among Christians."

The Vatican for decades has been worried about the well-being of its flock in China, who are loyal to the pope in defiance of the communist's government support of an officially sponsored church, and relations between Beijing and the Holy See are often tense.

Speaking about China's newly installed regime leaders, Benedict expressed hope that "they will esteem the contribution of the religions, in respect for each other, in such a way that they can help to build a fraternal society for the benefit of that noble people and of the whole world."

Acknowledging Latin America's predominant Christian population, he urged government leaders to carry out commitments to development and to fighting organized crime.

In Britain, the royal family was attending Christmas Day church services at St. Mary Magdelene Church on Queen Elizabeth II's sprawling Sandringham estate, though there were a few notable absences. Prince William is spending the holiday with his pregnant wife Kate and his in-laws in the southern England village of Bucklebury, while Prince Harry is serving with British troops in Afghanistan.

Later Tuesday, the queen delivered her traditional, prerecorded Christmas message, which for the first time was broadcast in 3D.

At Canterbury cathedral, Anglican leader Rowan Williams delivered his final Christmas day sermon as archbishop of Canterbury. He acknowledged how the church's General Synod's vote against allowing women to become bishops had cost credibility and said the faithful felt a "real sense of loss" over the decision.

In the U.S., the Rev. Jesse Jackson brought his message of anti-violence and gun control to a Chicago jail, using his traditional Christmas Day sermon at the facility to challenge inmates to help get guns off the streets.

"We've all been grieving about the violence in Newtown, Connecticut, the last few days," he told reporters after addressing inmates, referring to the Dec. 14 school shooting that killed 26 children and adults. "Most of those here today ... have either shot somebody or been shot. We're recruiting them to help us stop the flow of guns."

In Newtown, well-wishers from around the U.S. showed up on Christmas morning to hang ornaments on a series of memorial Christmas trees while police officers from around Connecticut took extra shifts to direct traffic and patrol the town to give local police a day off. In a 24-hour vigil, volunteers watched over 26 candles that had been lit at midnight in honor of those slain at the Sandy Hook Elementary School.

At a town hall memorial, Faith Leonard waved to people driving by and handed out Christmas cookies, children's gifts and hugs to anyone who needed it.

"I guess my thought was if I could be here helping out maybe one person would be able to spend more time with their family or grieve in the way they needed to," said Leonard, who drove to Newtown from Gilbert, Arizona, to volunteer on Christmas morning.

At St. Rose of Lima Roman Catholic Church, which eight of the child victims of the massacre attended, the Rev. Robert Weiss told parishioners that "today is the day we begin everything all over again."

"We know Christmas in a way we never ever thought we would know it," he said. "We need a little Christmas and we've been given it."

In a New York City neighborhood ravaged by Superstorm Sandy in late October, some holiday traditions had to go by the wayside, but Christmas was celebrated with a special sense of gratitude.

Midmorning and noon Masses were packed Tuesday at St. Francis De Sales Church in the Rockaways; the church only recently got heat restored after Sandy flooded its basement. The bells and organ still don't work, so St. Francis De Sales is making do with a keyboard for now.

"But nobody is feeling morose or down. They're just rebuilding their lives, keeping the faith and going forward," choir member Ed Quinn said. "It's not the best of circumstances, that's for sure. But we're making the best of it."

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Dalia Nammari in Bethlehem, Cassandra Vinograd in London, Sophia Tareen in Chicago, Julie Walker in New York, and Brock Vergakis and Stephen Singer in Newtown, Connecticut, contributed to this report.

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MIAMI (AP) A Marine veteran jailed in a dangerous area in Mexico for carrying a shotgun across the border was expected to be released Friday, officials and his lawyer said.

An aide to a legal representative of the Mexican attorney general's office told U.S. Sen. Bill Nelson's staff about the pending release after Nelson's office got word from the mother of Jon Hammar, a press release said.

"No American should be in a Mexican jail for five months without being able to have his case in front of a judge," Nelson said in a statement. "We're grateful; this is a good Christmas present."

Hammar's attorney, Eddie Varon Levy, said he was flying Friday from Mexico City to Matamoros to pick his client up. After that, the attorney said they intended to fly to Brownsville, Texas, later in the day. "I'm very happy. I feel that the Mexican legal system came out the way it should have," he said.

A defense lawyer said it was determined there was no intent to commit a crime, Nelson's office said in the press release. A U.S. Consulate official said they are standing by to escort the former Marine safely back to the United States as soon as they get official word of a release. Nelson was among a handful of local elected officials who urged the State Department to help get Hammar out of Mexico. His family said he was being held in isolation after they received threats to his safety.

Civilian gun ownership is illegal under Mexican law unless the owner purchases the weapon from a special shop run by the country's Department of Defense.

"The Department of State warns all U.S. citizens against taking any type of firearm or ammunition into Mexico," according to the website of the U.S. Embassy in Mexico. "Entering Mexico with a firearm, certain types of knives, or even a single round of ammunition is illegal, even if the weapon or ammunition is taken into Mexico unintentionally."

Mexican law also bans shotguns with barrels of less than 25 inches. The family said Hammar's shotgun has a barrel of 24 inches.

Tourists are allowed to bring guns for hunting on rare occasions, but Mexican officials said all visitors must receive a special permit before entering the country. Mexican customs agents do not issue gun permits. As a result, anyone crossing the border with a firearm or ammunition without a previously issued government permit is in instant violation of Mexican law, which stipulates long jail terms for breaking weapons laws.

Hammar and his friend were on their way to Costa Rica in August and planned to drive across the Mexican border near Matamoros in a Winnebago filled with surfboards and camping gear. Hammar, 27, asked U.S. border agents what to do with the unloaded shotgun. His family said agents told them to fill out a form for the gun, which belonged to Hammar's great-grandfather.

But when the pair crossed the border and handed the paperwork to Mexican officials, they impounded the RV and jailed the men, saying it was illegal to carry that type of gun. Hammar's friend was later released because the gun did not belong to him.

Varon Levy said he was not sure of Hammar's immediate plans once he returns to the U.S. "Probably some down time," he said.

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Michael Weissenstein contributed to this report from Mexico City.

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RTANJ, Serbia (Reuters) - If doomsday really falls on Friday, the residents of this Serbian mountain region are cashing in while they can.

"We're booked out December 20-23. We have a New Age convention and guests are coming because of the end of the world ," said Nebojsa Gajic , manager of the 160-bed, Communist-era Millennium Hotel on the slopes of Mount Rtanj .

The region is selling itself as the best place to survive the looming apocalypse - which will fall on December 21, according to mystics whose calculations depend on the ending of an era in the 5,125-year-old Mayan calendar.

It is basing its promise on the mystical powers that locals say have flooded the area since its pyramid-shaped mountain swallowed a castle belonging to a well-to-do sorcerer, trapping him inside.

About 250 km (155 miles) east of the capital Belgrade, towards Bulgaria, Mount Rtanj is part of the Carpathian range and famed in Serbia for its herbal tea, pristine nature and clean air.

Like the French Pyrenean village of Bugarach - which is guarded by another magical mountain - Rtanj is offering salvation from Friday's cataclysm and safe passage into a golden age.

Residents say they have been inundated with enquiries from Serbia and abroad.

"We're booked out," said Darko Jovic, manager of the Balasevic hotel. "People were even calling from the United States and we had to say 'No'. I couldn't even get a room for my own mother and sister."

The Serbian daily Blic reported the going rate for private accommodation had shot up to 500 euros ($660) per night.

A Reuters reporting crew in Rtanj said the area appeared quiet, but bulldozers were clearing the roads of snow in preparation for the expected influx.

"We came because of the end of the world," said Dragoljub Arandjelovic from the nearby town of Paracin. It was unclear if he was serious, or in search of a good party.

"We tried to find a room but without success. If we can't stay here, we'll just have to grin and bear it," he added.

Locals say the sorcerer still lives in the mountain and that there have been sightings of fireballs hovering above Rtanj's foggy peak.

Serbian media reports say physicists have recorded magnetic anomalies in the area, which is riddled with abandoned coal-mine shafts dating from the 19th century.

Retired show-business promoter Dragan Milenkovic, 65, said the mountain, with its striking pyramid shape, was built by aliens who would return on Friday.

"On December 21, on the summit of Rtanj, we'll see a beautiful violet and red light that will engulf the planet for about five seconds and they (the aliens) will come," he told Reuters. "That will mark the beginning of a golden era that will last 1,345 years."

Others were unconvinced.

"For me, doomsday comes every month when I have to cover monthly expenses of 300 euros with a salary of 250 euros and a family of three to feed," said 36-year-old nurse Dragana Djordjevic.

($1 = 0.7568 euros)

(Editing by Matt Robinson and Andrew Heavens)

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