Wall Street Week Ahead: "Cliff" worries may drive tax selling

NEW YORK (Reuters) - Investors typically sell stocks to cut their losses at year end. But worries about the "fiscal cliff" - and the possibility of higher taxes in 2013 - may act as the greatest incentive to sell both winners and losers by December 31.

The $600 billion of automatic tax increases and spending cuts scheduled for the beginning of next year includes higher rates for capital gains, making tax-loss selling even more appealing than usual.

Tax-related selling may be behind the weaker trend in the shares of market leader Apple , analysts said. The stock is down 20 percent for the quarter, but it's still up nearly 32 percent for the year.

Apple dropped 8.9 percent in this past week alone. For a stock that gained more than 25 percent a year for four consecutive years, the embedded capital gains suddenly look like a selling opportunity if one's tax bill is going to jump sharply just because the calendar changes.

"Tax-loss selling is always a factor (but) tax-gains selling has been a factor this year," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

"You have a lot of high-net-worth individuals in taxable accounts, and that could be what's affecting stocks like Apple. If you look at the stocks that people have their largest gains in, they seem to be under a little bit more pressure here than usual."

Of this year's top 20 performers in the S&P 1500 index, which includes large, small and mid-cap stocks, all but four have lost ground in the last five trading sessions.

The rush to avoid higher taxes on portfolio gains could cause additional weakness.

The S&P 500 ended the week up just 0.1 percent after another week of trading largely tied to fiscal cliff negotiation news, which has pushed the market in both directions.

A PAIN PILL FROM THE FED?

Next week's Federal Reserve meeting could offer some relief if policymakers announce further plans to help the lackluster U.S. economy. The Federal Open Market Committee will meet on Tuesday and Wednesday. The policy statement is expected at about 12:30 p.m. on Wednesday after the conclusion of the meeting - the Fed's last one for the year.

Friday's jobs report showing non-farm payrolls added 146,000 jobs in November eased worries that Superstorm Sandy had hit the labor market hard.

"After the FOMC meeting, I think it's going to be downhill from there as worries about the fiscal cliff really take center stage and prospects of a deal become less and less likely," said Mohannad Aama, managing director of Beam Capital Management LLC in New York.

"I think we are likely to see an escalation in profit-taking ahead of tax rates going up next year," he said.

MORE VOLUME AND VOLATILITY

Volume could increase as investors try to shift positions before year end, some analysts said.

While most of that would be in stocks, some of the extra trading volume could spill over into options, said J.J. Kinahan, TD Ameritrade's chief derivatives strategist.

Volatility could pick up as well, and some of that is already being seen in Apple's stock.

"The actual volatility in Apple has been very high while the market itself has been calm. I expect Apple's volatility to carry over into the market volatility," said Enis Taner, global macro editor at RiskReversal.com, an options trading firm in New York.

Shares of Apple, the largest U.S. company by market value, registered their worst week since May 2010. In another bearish sign, the stock's 50-day moving average fell to $599.52 - below its 200-day moving average at $601.38.

"There's a lot of tax-related selling happening now, and it will continue to happen. Apple is an example, even (though) there are other factors involved with Apple," Aama said.

While investors may be selling stocks to avoid higher taxes in 2013, companies may continue to announce special and accelerated dividend payments before year end. Among the latest, Expedia announced a special dividend of 52 cents a share to be paid on December 28.

To be sure, the big sell-off in stocks following the November 6 election was likely related to tax selling, making it hard to judge how much more is to come.

Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston, said there's a decent chance that the market could rally before year end.

"Even with little or spotty news that one would put in the positive bucket regarding the (cliff) negotiations, the market has basically hung in there, and I think it's hung in there in anticipation of something coming," he said.

(Wall St Week Ahead runs every Friday. Questions or comments on this column can be emailed to: caroline.valetkevitch(at)thomsonreuters.com)

(Reporting by Caroline Valetkevitch; Editing by Jan Paschal; Multimedia versions of Reuters Top News are now available for:; 3000 Xtra: visit Reuters Top News; BridgeStation: view story .134; For London stock market outlook please click on .L/O; Pan-European stock market outlook .EU/O; Tokyo stock market outlook .T/O; Wall St Week Ahead runs every Friday.)

Read More..

Taylor Swift & Harry Styles Pack on the PDA at N.Y.C. Party

By Andrea Billups

12/07/2012 at 09:35 AM EST

Taylor Swift and Harry Styles leaving the Crosby Hotel

Miles Diggs/Splash News Online

Their romance is heating up!

New couple Taylor Swift and One Direction's Harry Styles stepped out at New York's Crosby Hotel on Thursday night to celebrate a friend's birthday – and get in a little PDA of their own.

Joined by Dianna Agron, Emma Stone and about a dozen guests, Swift, 22, dressed demurely in black, and Styles, 18, watched as a cake was served and helped to sing along to "Happy Birthday" at the hotel's Crosby Bar.

"Taylor and Harry [were] being very smoochie," a source at the party told PEOPLE. "They definitely [looked] like a couple."

According to the source, Swift (who is up for three Grammys) and Styles held hands and he seemed "really protective of her" and kept his arm around her during the party.

They shared plenty of kisses, too, and didn't seem to mind if anyone saw. Says the source: "They're not trying to hide it. The bar was packed."

Their outing marks a string of get-togethers in New York City over the past week.

On Sunday they visited the Central Park Zoo together. And on Monday, Swift attended a Madison Square Garden show afterparty at the Hudson Hotel for Styles' band, One Direction, where the couple joined for a karaoke duet of a Backstreet Boys song. Swift later sang a One Direction tune, before the couple returned to her hotel around 4 a.m.

• Reporting by JENNIFER BRADLEY FRANKLIN

Read More..

Celebrations planned as Wash. legalizes marijuana

SEATTLE (AP) — Legal marijuana possession becomes a reality under Washington state law on Thursday, and some people planned to celebrate the new law by breaking it.

Voters in Washington and Colorado last month made those the first states to decriminalize and regulate the recreational use of marijuana. Washington's law takes effect Thursday and allows adults to have up to an ounce of pot — but it bans public use of marijuana, which is punishable by a fine, just like drinking in public.

Nevertheless, some people planned to gather at 12:01 a.m. PST Thursday to smoke in public beneath Seattle's Space Needle. Others planned a midnight party outside the Seattle headquarters of Hempfest, the 21-year-old festival that attracts tens of thousands of pot fans every summer.

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

That law also takes effect Thursday, when gay and lesbian couples can start picking up their wedding certificates and licenses at county auditors' offices. Those offices in King County, the state's largest and home to Seattle, and Thurston County, home to the state capital of Olympia, planned to open the earliest, at 12:01 a.m. Thursday, to start issuing marriage licenses. Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

The Seattle Police Department provided this public marijuana use enforcement guidance to its officers via email Wednesday night: "Until further notice, officers shall not take any enforcement action — other than to issue a verbal warning — for a violation of Initiative 502."

Thanks to a 2003 law, marijuana enforcement remains the department's lowest priority. Even before I-502 passed on Nov. 6, police rarely busted people at Hempfest, despite widespread pot use, and the city attorney here doesn't prosecute people for having small amounts of marijuana.

Officers will be advising people to take their weed inside, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress" — a non-issue, since the measures passed in Washington and Colorado don't "nullify" federal law, which federal agents remain free to enforce.

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Colorado's measure, as far as decriminalizing possession goes, is set to take effect by Jan. 5. That state's regulatory scheme is due to be up and running by October 2013.

___(equals)

Johnson can be reached at https://twitter.com/GeneAPseattle

Read More..

Wall Street opens higher after payrolls

NEW YORK (Reuters) - Stocks opened higher on Friday in the wake of data showing U.S. employment grew more than forecast in November, defying expectations of a sharp pull back relating to Superstorm Sandy.

The Dow Jones industrial average <.dji> gained 57.29 points, or 0.44 percent, to 13,131.33. The Standard & Poor's 500 Index <.spx> rose 6.09 points, or 0.43 percent, to 1,420.03. The Nasdaq Composite Index <.ixic> climbed 13.69 points, or 0.46 percent, to 3,002.96.

(Reporting by Chuck Mikolajczak; Editing by Bernadette Baum)

Read More..

U. S. and Russia to Meet on Syrian Conflict

DUBLIN — A new round of diplomacy on the conflict in Syria will begin on Thursday afternoon when Lakhdar Brahimi, the United Nations special envoy, hosts an unusual three-way meeting with Secretary of State Hillary Rodham Clinton and the Russian foreign minister, Sergey V. Lavrov.

The session, which is being held on the margins of a meeting on European security, comes amid reports of heightened activity at Syria’s chemical weapons sites and signs that Russia may be shifting its position on a political transition in Syria.

“Secretary Clinton has accepted an invitation by U.N. Special Envoy Brahimi for a trilateral meeting on Syria this afternoon with Mr. Brahimi and Russian Foreign Minister Lavrov,” a senior State Department official said Thursday morning.

This is not the first time that American and Russian consultations have spurred hopes of a possible breakthrough. In June, Mrs. Clinton, Mr. Lavrov and the United Nations’s envoy on the Syrian crisis at the time, former United Nations Secretary General Kofi Annan, appeared to be close to an agreement that a transitional government should be established and that President Bashar al-Assad give up power.

But that seeming understanding quickly broke down, with Americans officials complaining privately that the Russian side had pulled back from the deal. A major sticking point, it later emerged, was the American insistence that the United Nations Security Council authorize steps to pressure Mr. Assad if he refused to go along under Chapter 7 of the United Nations Charter, which could be used to authorize tougher economic sanctions and, in theory, the use of force.

It remained to be seen if the new round of negotiations would be more successful.

On the one hand, the military situation on the ground appears to be shifting in the rebels’ favor. Some Russian officials reportedly no longer believe that Mr. Assad will succeed in holding on to power and may have a new interest in working out arrangements for a transition. The changing battlefield, some experts say, may have led to a softening of the Russian position.

A senior Turkish official said that after President Vladimir V. Putin of Russia and Prime Minister Recep Tayyip Erdogan of Turkey recently met in Istanbul that Moscow was “softening” its “political tone” and would look for ways of getting Mr. Assad to relinquish power.

On the other hand, it was possible that Mr. Lavrov had, in effect, merely agreed to meet so that Russia could maintain influence over the discussions on Syria and find out what exactly Mr. Brahimi was prepared to propose.

There were indications on Thursday that Russian officials see the positions of Washington and Moscow on Syria moving slightly closer.

Deputy Foreign Minister Gennady Gatilov of Russia expressed satisfaction in a Twitter message that the United States was moving to designate Al Nusra Front, a Syrian opposition group seen by American experts as linked to Al Qaeda, as an international terrorist organization.

The aim of the American move, which is expected soon, would be to isolate radical foes of the Assad government.

With the rebels making gains on the ground, American officials have been trying to ensure that military developments do not outpace political arrangements for a possible transition. American officials have hinted that the United States would upgrade relations with the Syria opposition, possibly to formal recognition, if the coalition made progress on a political structure by the time of a meeting of the so-called Friends of Syria in Morocco.

But emerging policy on the Al Nusra Front also acknowledges Russia’s longstanding argument that the Syrian opposition includes radical jihadists. Mr. Gatilov said that the American step “reflects understanding of the danger of escalating terrorist activity in Syria.”

A lawmaker with the dominant party, United Russia, told British legislators visiting Moscow that Russia saw Mr. Assad’s government struggling. “We think that the Syrian government should execute its functions,” he said, according to the Interfax news service. “But time shows that this task is beyond its strength.”

Dimitri K. Simes, a Russia expert the Center for the National Interest in Washington, said, based on conversations with top officials, that Russia has indeed softened its position in light of military setbacks for the Assad government, and it is now understood that neither Mr. Assad nor his close associates would take a central role in a new government.

However, he said Russia still wanted Iran to take part in negotiations about the transition. Iran’s presence, he said, would reassure Alawites, the Shiite Muslim minority of Mr. Assad and the core of the military, that they would be protected in the change of government.

Michael R. Gordon reported from Dublin, and Ellen Barry from Moscow. Anne Barnard contributed reporting from Beirut, Lebanon.

Read More..

Grammy Nomination Snubs, Surprises & Surefire Contenders

By PEOPLE Music Critic Chuck Arnold

12/06/2012 at 09:45 AM EST

(from left) Frank Ocean, Ed Sheeran and Miguel

PictureGroup; WireImage (2)

Where was the love for the heartthrobs?

That's the biggest question after both Justin Bieber and One Direction – two of this year's biggest sellers – were shut out when the nominations for the 55th annual Grammy Awards were announced last night in conjunction with a concert televised live from Nashville. Bieber seemed a good bet to at least grab a best pop vocal album nod for his hit Believe, while One Direction appeared to have an even better shot to make the best new artist cut.

Apparently there were no 12-year-old girls voting this year.

But those boys weren't the only ones snubbed by voters: Nicki Minaj and Lionel Richie both failed to get recognized for their hit albums Pink Friday: Roman Reloaded and Tuskegee, respectively. Richie, teaming up with country stars to remake his hits, appeared to have sure-fire bait for album of the year.

With no Adele in 2012, the wealth was spread.

Six artists were tied for the most nominations: the Black Keys's Dan Auerbach; FUN; Jay-Z; Mumford & Sons; Frank Ocean; and Kanye West each scored six. But with Jay-Z and West mostly relegated to the rap categories, it's really all about the other four, who all are up for the prestigious album of the year.

No Big Surprises

None is a major surprise, but the fifth nominee – Jack White's Blunderbuss – was somewhat unexpected. Maroon 5, which only scored two nominations despite having a banner year, seemed poised to contend for Overexposed.

The record of the year candidates were also a likely bunch, with the Black Keys ("Lonely Boy"); Kelly Clarkson ("Stronger [What Doesn't Kill You]"); FUN featuring Janelle Monae ("We Are Young"); Gotye featuring Kimbra ("Somebody That I Used to Know"); and Taylor Swift ("We Are Never Ever Getting Back Together") picking up nods.

But Ocean was a welcome surprise for "Thinking Bout You."

Neo-soul man Ocean was an expected contender for best new artist, where he will compete with power-pop band FUN and country breakout Hunter Hayes. But no one saw bluesy rockers Alabama Shakes coming here. And the Lumineers, a folk-rock trio, seemed a long shot to beat out Gotye, Carly Rae Jepsen or even Ed Sheeran for a spot.

At least Sheeran, the kind of singer-songwriter type that Grammy voters usually love, got nominated for song of the year for his folkie hit "The A Team." Also less expected but well-deserved in this category: Miguel's R&B single "Adorn."

In fact, Miguel earned an impressive five nods, including best urban contemporary album for Kaleidoscope Dream. And with three nominations, including best country album for his self-titled set, Hayes was one heartthrob who will give the girls someone to cheer for when the winners are announced at the 55th Annual Grammy Awards Feb. 10 at 8 p.m. ET on CBS.

Read More..

Celebrations planned as Wash. legalizes marijuana

SEATTLE (AP) — Legal marijuana possession becomes a reality under Washington state law on Thursday, and some people planned to celebrate the new law by breaking it.

Voters in Washington and Colorado last month made those the first states to decriminalize and regulate the recreational use of marijuana. Washington's law takes effect Thursday and allows adults to have up to an ounce of pot — but it bans public use of marijuana, which is punishable by a fine, just like drinking in public.

Nevertheless, some people planned to gather at 12:01 a.m. PST Thursday to smoke in public beneath Seattle's Space Needle. Others planned a midnight party outside the Seattle headquarters of Hempfest, the 21-year-old festival that attracts tens of thousands of pot fans every summer.

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

That law also takes effect Thursday, when gay and lesbian couples can start picking up their wedding certificates and licenses at county auditors' offices. Those offices in King County, the state's largest and home to Seattle, and Thurston County, home to the state capital of Olympia, planned to open the earliest, at 12:01 a.m. Thursday, to start issuing marriage licenses. Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

The Seattle Police Department provided this public marijuana use enforcement guidance to its officers via email Wednesday night: "Until further notice, officers shall not take any enforcement action — other than to issue a verbal warning — for a violation of Initiative 502."

Thanks to a 2003 law, marijuana enforcement remains the department's lowest priority. Even before I-502 passed on Nov. 6, police rarely busted people at Hempfest, despite widespread pot use, and the city attorney here doesn't prosecute people for having small amounts of marijuana.

Officers will be advising people to take their weed inside, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress" — a non-issue, since the measures passed in Washington and Colorado don't "nullify" federal law, which federal agents remain free to enforce.

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Colorado's measure, as far as decriminalizing possession goes, is set to take effect by Jan. 5. That state's regulatory scheme is due to be up and running by October 2013.

___(equals)

Johnson can be reached at https://twitter.com/GeneAPseattle

Read More..

Wall Street up as help seen for Spanish banks

Facebook (FB) announced on Tuesday that it will begin opening Facebook Messenger to consumers who do not have a Facebook account, starting in countries like India and South Africa, and later rolling out the service in the United States and Europe. This is a belated acknowledgement of a staggering strategic mistake Facebook made two years ago. That is when the messaging app competition was still wide open and giants like Facebook or Google (GOOG) could have entered the competition. WhatsApp, the leading messaging app firm, had just 1 million users as late as December 2009. By the end of 2010, that number had grown to 10 million. Right now, it likely tops 200 million, though there is no current official number

Read More..

Cheering U.N. Palestine Vote, New York Synagogue Tests Its Members

Congregation B’nai Jeshurun, a large synagogue on the Upper West Side of Manhattan, is known for its charismatic rabbis, its energetic and highly musical worship, and its liberal stances on social causes.

But on Friday, when its rabbis and lay leaders sent out an e-mail enthusiastically supporting the vote by the United Nations to upgrade Palestine to a nonmember observer state, the statement was more than even some of its famously liberal congregants could stomach.

“The vote at the U.N. yesterday is a great moment for us as citizens of the world,” said the e-mail, which was sent to all congregants. “This is an opportunity to celebrate the process that allows a nation to come forward and ask for recognition.”

The statement, at a time when the United Nations’ vote was opposed by the governments of the United States and Israel, as well as by the leadership of many American Jewish organizations, reflected a divide among American Jews and a willingness to publicly disagree with Israel.

Clergy at several Jewish congregations have, in various ways, spoken out sympathetically about the United Nations’ vote. But B’nai Jeshurun stood out because of its size and prominence, and reaction from congregants was swift. Allan Ripp, a member, said he and his wife were appalled.

“We are just sort of in a state of shock,” he said. “It’s not as if we don’t support a two-state solution, but to say with such a warm embrace — it is like a high-five to the P.L.O., and that has left us numb.”

Other congregants, however, said it was a bold move that they welcomed.

“I thought it was very courageous of them,” said Gil Kulick, a congregant. “I think as of late there has been a reluctance to speak out on this issue,” he added, “and that’s why I was really delighted that they chose to take a strong unequivocal stand.”

American Jews have long had a vigorous, and sometimes vitriolic, debate about the positions of the Israeli government and the peace process with the Palestinians. But the tendency has been to keep critical views within the fold.

“At most times we impose a kind of discipline upon ourselves — nobody imposes it on us — particularly on a matter that the Israeli government has asked for unanimous support from the Jewish community,” said Samuel Norich, the publisher of The Forward, a Jewish affairs weekly based in New York. “When they speak out, that is rare,” Mr. Norich said of mainstream congregations.

Gary Rosenblatt, the editor and publisher of The Jewish Week, the largest-circulation Jewish newspaper in the country, said, “I think the sense of a need for a unified front in the American Jewish community is breaking down.”

In White Plains, a group of synagogues from different branches of Judaism — Conservative, Reform and Reconstructionist — sent an e-mail to congregants after the United Nations’ vote expressing cautious optimism about Palestine’s new status.

“For their own reasons, most of the American Jewish organizations felt it was necessary to fall into line,” said Lester Bronstein, a rabbi at Bet Am Shalom Synagogue in White Plains and one of the signers of the letter. “I think what we said is indicative of what more and more rabbis believe, and more and more, but in trickles, are able to say it.”

 The rabbis at B’nai Jeshurun — J. Rolando Matalon, Marcelo R. Bronstein and Felicia L. Sol — did not respond to requests for comment on the e-mail, which was also signed by the president of the synagogue’s board of directors and its executive director.

While its gist — that the vote could be a step toward a two-state solution and Middle East peace — was not surprising to congregants, its tone and its timing were jarring, some said.

“It’s very shocking to many of the congregants that this position was taken publicly and this e-mail was sent around,” said Eve Birnbaum, a member of the congregation for about 15 years.

“I am very dismayed, as a longstanding member of the synagogue, that the rabbis and the board would take a position that is contrary to what many members believe, contrary to the peace process,” she added.

It was not immediately clear how widespread opposition to the rabbis’ e-mail has been within the congregation, but Mr. Ripp said he had been inundated with messages from people upset about the rabbis’ statement, and some members had posted comments online and circulated e-mails expressing concern.

But others supported the action.

This article has been revised to reflect the following correction:

Correction: December 4, 2012

An earlier version of this article misspelled the name of the congregation at one point.  It is B’nai Jeshurun, not B’nai Jeshrun,

Read More..

Baby Boy on the Way for Love and Theft's Eric Gunderson

Mom & Babies
Celebrity Baby Blog

12/05/2012 at 10:00 AM ET

Jason Kempin/Getty

Wishes really do come true — just ask Eric Gunderson.

After announcing he and his wife Emily were expecting a baby, the Love and Theft musician couldn’t hide his high hopes that their firstborn would be a boy.

Luckily for Gunderson, his dreams will become a reality when the couple welcomes a son in mid-May, his rep tells PEOPLE.

“I’m so excited to have a boy,” Gunderson says. “Emily would be happy either way, but I’ve been secretly planning father/son hunting and fishing trips all along.”

And, if left up to the future doting dad, the two will be sure to spend time strumming a few tunes together. “I might even let him try his hand at guitar, although you know those musicians are a handful,” Gunderson jokes.

– Anya Leon

Read More..