Riots over Egyptian death sentences kill at least 32


PORT SAID, Egypt/CAIRO (Reuters) - At least 32 people were killed on Saturday when Egyptians rampaged in protest at the sentencing of 21 people to death over a soccer stadium disaster, violence that compounds a political crisis facing Islamist President Mohamed Mursi.


Armored vehicles and military police fanned through the streets of Port Said, where gunshots rang out and protesters burned tires in anger that people from their city had been blamed for the deaths of 74 people at a match last year.


The rioting in Port Said, one of the most deadly spasms of violence since Hosni Mubarak's ouster two years ago, followed a day of anti-Mursi demonstrations on Friday, when nine people were killed. The toll over the past two days stands at 41.


The flare-ups make it even tougher for Mursi, who drew fire last year for expanding his powers and pushing through an Islamist-tinged constitution, to fix the creaking economy and cool tempers enough to ensure a smooth parliamentary election.


That vote is expected in the next few months and is meant to cement a democratic transition that has been blighted from the outset by political rows and street clashes.


The National Defense Council, which is led by Mursi and includes the defense minister who commands the army, called for "a broad national dialogue that would be attended by independent national characters" to discuss political differences and ensure a "fair and transparent" parliamentary poll.


The National Salvation Front of liberal-minded groups and other Mursi opponents cautiously welcomed the call.


THREATS OF VIOLENCE


Clashes in Port Said erupted after a judge sentenced 21 men to die for involvement in the deaths at the soccer match on February 1, 2012. Many were fans of the visiting team, Cairo's Al Ahly.


Al Ahly fans had threatened violence if the court had not meted out the death penalty. They cheered outside their Cairo club when the verdict was announced. But in Port Said, residents were furious that people from their city were held responsible.


Protesters ran wildly through the streets of the Mediterranean port, lighting tires in the street and storming two police stations, witnesses said. Gunshots were reported near the prison where most of the defendants were being held.


A security source in Port Said said 32 people were killed there, many dying from gunshot wounds. He said 312 were wounded and the ministry of defense had allocated a military plane to transfer the injured to military hospitals.


Inside the court in Cairo, families of victims danced, applauded and some broke down in tears of joy when they heard Judge Sobhy Abdel Maguid declare that the 21 men would be "referred to the Mufti", a phrase used to denote execution, as all death sentences must be reviewed by Egypt's top religious authority.


There were 73 defendants on trial. Those not sentenced on Saturday would face a verdict on March 9, the judge said.


At the Port Said soccer stadium a year ago, many spectators were crushed and witnesses saw some thrown off balconies after the match between Al Ahly and local team al-Masri. Al Ahly fans accused the police of being complicit in the deaths.


Among those killed on Saturday were a former player for al-Masri and a soccer player in another Port Said team, the website of the state broadcaster reported.


TEARGAS FIRED


On Friday, protesters angry at Mursi's rule had taken to the streets for the second anniversary of the uprising that erupted on January 25, 2011 and brought Mubarak down 18 days later.


Police fired teargas and protesters hurled stones and petrol bombs. Nine people were killed, mainly in the port city of Suez, and hundreds more were injured across the nation.


Reflecting international concern at the two days of clashes, British Foreign Office Minister for the Middle East Alistair Burt said: "This cannot help the process of dialogue which we encourage as vital for Egypt today, and we must condemn the violence in the strongest terms."


European Union foreign policy chief Catherine Ashton urged the Egyptian authorities to restore calm and order and called on all sides to show restraint, her spokesperson said.


On Saturday, some protesters again clashed and scuffled with police in Cairo, Alexandria and other cities. In the capital, youths pelted police lines with rocks near Tahrir Square.


In Suez, police fired teargas when protesters angry at Friday's deaths hurled petrol bombs and stormed a police post and other governmental buildings including the agriculture and social solidarity units.


Around 18 prisoners in Suez police stations managed to escape during the violence, a security source there said, and some 30 police weapons were stolen.


"We want to change the president and the government. We are tired of this regime. Nothing has changed," said Mahmoud Suleiman, 22, in Cairo's Tahrir Square, the cauldron of the 2011 anti-Mubarak revolt.


Mursi's opponents say he has failed to deliver on economic pledges or to be a president representing the full political and communal diversity of Egyptians, as he promised.


"Egypt will not regain its balance except by a political solution that is transparent and credible, by a government of national salvation to restore order and heal the economy and with a constitution for all Egyptians," prominent opposition politician Mohamed ElBaradei wrote on Twitter.


The opposition National Salvation Front, responding to the Defense Council's call for dialogue, said there must be a clear agenda and guarantees that any deal would be implemented, spokesman Khaled Dawoud told Reuters.


The Front earlier on Saturday threatened an election boycott and to call for more protests on Friday if demands were not met. Its demands included picking a national unity government to restore order and holding an early presidential poll.


Mursi's supporters say the opposition does not respect the democracy that has given Egypt its first freely elected leader.


The Muslim Brotherhood, which propelled Mursi to office, said in a statement that "corrupt people" and media who were biased against the president had stirred up fury on the streets.


The frequent violence and political schism between Islamists and secular Egyptians have hurt Mursi's efforts to revive an economy in crisis as investors and tourists have stayed away, taking a heavy toll on Egypt's currency.


(Additional reporting by Omar Fahmy, Peter Griffiths in London and Claire Davenport in Brussels; Writing by Edmund Blair; Editing by Mark Trevelyan)



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Wall Street Week Ahead: Bears hibernate as stocks near record highs

NEW YORK (Reuters) - Stocks have been on a tear in January, moving major indexes within striking distance of all-time highs. The bearish case is a difficult one to make right now.


Earnings have exceeded expectations, the housing and labor markets have strengthened, lawmakers in Washington no longer seem to be the roadblock that they were for most of 2012, and money has returned to stock funds again.


The Standard & Poor's 500 Index <.spx> has gained 5.4 percent this year and closed above 1,500 - climbing to the spot where Wall Street strategists expected it to be by mid-year. The Dow Jones industrial average <.dji> is 2.2 percent away from all-time highs reached in October 2007. The Dow ended Friday's session at 13,895.98, its highest close since October 31, 2007.


The S&P has risen for four straight weeks and eight consecutive sessions, the longest streak of days since 2004. On Friday, the benchmark S&P 500 ended at 1,502.96 - its first close above 1,500 in more than five years.


"Once we break above a resistance level at 1,510, we dramatically increase the probability that we break the highs of 2007," said Walter Zimmermann, technical analyst at United-ICAP, in Jersey City, New Jersey. "That may be the start of a rise that could take equities near 1,800 within the next few years."


The most recent Reuters poll of Wall Street strategists estimated the benchmark index would rise to 1,550 by year-end, a target that is 3.1 percent away from current levels. That would put the S&P 500 a stone's throw from the index's all-time intraday high of 1,576.09 reached on October 11, 2007.


The new year has brought a sharp increase in flows into U.S. equity mutual funds, and that has helped stocks rack up four straight weeks of gains, with strength in big- and small-caps alike.


That's not to say there aren't concerns. Economic growth has been steady, but not as strong as many had hoped. The household unemployment rate remains high at 7.8 percent. And more than 75 percent of the stocks in the S&P 500 are above their 26-week highs, suggesting the buying has come too far, too fast.


MUTUAL FUND INVESTORS COME BACK


All 10 S&P 500 industry sectors are higher in 2013, in part because of new money flowing into equity funds. Investors in U.S.-based funds committed $3.66 billion to stock mutual funds in the latest week, the third straight week of big gains for the funds, data from Thomson Reuters' Lipper service showed on Thursday.


Energy shares <.5sp10> lead the way with a gain of 6.6 percent, followed by industrials <.5sp20>, up 6.3 percent. Telecom <.5sp50>, a defensive play that underperforms in periods of growth, is the weakest sector - up 0.1 percent for the year.


More than 350 stocks hit new highs on Friday alone on the New York Stock Exchange. The Dow Jones Transportation Average <.djt> recently climbed to an all-time high, with stocks in this sector and other economic bellwethers posting strong gains almost daily.


"If you peel back the onion a little bit, you start to look at companies like Precision Castparts , Honeywell , 3M Co and Illinois Tool Works - these are big, broad-based industrial companies in the U.S. and they are all hitting new highs, and doing very well. That is the real story," said Mike Binger, portfolio manager at Gradient Investments, in Shoreview, Minnesota.


The gains have run across asset sizes as well. The S&P small-cap index <.spcy> has jumped 6.7 percent and the S&P mid-cap index <.mid> has shot up 7.5 percent so far this year.


Exchange-traded funds have seen year-to-date inflows of $15.6 billion, with fairly even flows across the small-, mid- and large-cap categories, according to Nicholas Colas, chief market strategist at the ConvergEx Group, in New York.


"Investors aren't really differentiating among asset sizes. They just want broad equity exposure," Colas said.


The market has shown resilience to weak news. On Thursday, the S&P 500 held steady despite a 12 percent slide in shares of Apple after the iPhone and iPad maker's results. The tech giant is heavily weighted in both the S&P 500 and Nasdaq 100 <.ndx> and in the past, its drop has suffocated stocks' broader gains.


JOBS DATA MAY TEST THE RALLY


In the last few days, the ratio of stocks hitting new highs versus those hitting new lows on a daily basis has started to diminish - a potential sign that the rally is narrowing to fewer names - and could be running out of gas.


Investors have also cited sentiment surveys that indicate high levels of bullishness among newsletter writers, a contrarian indicator, and momentum indicators are starting to also suggest the rally has perhaps come too far.


The market's resilience could be tested next week with Friday's release of the January non-farm payrolls report. About 155,000 jobs are seen being added in the month and the unemployment rate is expected to hold steady at 7.8 percent.


"Staying over 1,500 sends up a flag of profit taking," said Jerry Harris, president of asset management at Sterne Agee, in Birmingham, Alabama. "Since recent jobless claims have made us optimistic on payrolls, if that doesn't come through, it will be a real risk to the rally."


A number of marquee names will report earnings next week, including bellwether companies such as Caterpillar Inc , Amazon.com Inc , Ford Motor Co and Pfizer Inc .


On a historic basis, valuations remain relatively low - the S&P 500's current price-to-earnings ratio sits at 15.66, which is just a tad above the historic level of 15.


Worries about the U.S. stock market's recent strength do not mean the market is in a bubble. Investors clearly don't feel that way at the moment.


"We're seeing more interest in equities overall, and a lot of flows from bonds into stocks," said Paul Zemsky, who helps oversee $445 billion as the New York-based head of asset allocation at ING Investment Management. "We've been increasing our exposure to risky assets."


For the week, the Dow climbed 1.8 percent, the S&P 500 rose 1.1 percent and the Nasdaq advanced 0.5 percent.


(Reporting by Ryan Vlastelica; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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Armstrong to help "clean up cycling"


AUSTIN, Texas (AP) — An attorney for Lance Armstrong told the U.S. Anti-Doping Agency the cyclist will cooperate with efforts to "clean up cycling," though it's the sport's governing body and world anti-doping officials who should take the lead.


In letters sent this week between attorneys for Armstrong and USADA, and obtained by The Associated Press, USADA attorney William Bock requested Armstrong testify under oath by Feb. 6, but the cyclist's attorney, Tim Herman, responds that Armstrong cannot accommodate that schedule.


Last week, Armstrong admitted to taking performance-enhancing drugs to win the Tour de France seven times.


Herman's letter said Armstrong intends to appear before the International Cycling Union's planned "truth and reconciliation" commission.


Herman says the cycling union and the World Anti-Doping Agency should take the lead in cleaning up the sport.


"As you have candidly confirmed, USADA has no authority to investigate, prosecute or otherwise involve itself with the other 95 percent of cycling competitors. Thus, in order to achieve the goal of 'cleaning up cycling,' it must be WADA and the UCI who have overall authority to do so."


The letter from USADA also confirms a Dec. 14 meeting in Denver between Bock, USADA CEO Travis Tygart, Herman and Armstrong.


"Mr. Armstrong has already been provided well over a month since our meeting in December to consider whether he is going to be part of our ongoing efforts to clean up the sport of cycling," Tygart said in a statement. "He has been given a deadline of February 6th to determine whether he plans to come in and be part of the solution. Either way, USADA is moving forward with our investigation on behalf of clean athletes."


Armstrong has been banned for life and, in his interview with Oprah Winfrey last week, said he would like to compete again.


Bock's letter does not mention the ban, though Armstrong's full cooperation could lead to a reduction, perhaps to eight years, which would allow Armstrong to compete in 2020, when he'll be 49.


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US Military Building Space Robot to Recycle Satellites (Video)






A Pentagon project to harvest and reuse parts from dead satellites is gaining steam, and a new video shows how the far the military program has come in its first few months.


The new video serves as a progress report through last November for the Phoenix program, a project by the Defense Advanced Research Projects Agency (DARPA) to recycle space junk back into valuable satellite parts, or even completely new spacecraft. DARPA scientists began the project in July and are working toward launching the first demonstration mission in two years or so.






“Today, satellites are not built to be modified or repaired in space,” Phoenix program manager Dave Barnhart said in a statement unveiling the video Tuesday (Jan. 22). “Therefore, to enable an architecture that can reuse or repurpose on-orbit components requires us to create new technologies and new capabilities. This progress report gives the community a better sense of how we are doing on the challenges we may face and the technologies needed to help us meet our goals.” 


An animation of a Phoenix servicing spacecraft working on orbit runs in the background of the 2 1/2-minute video. The foreground, meanwhile, shows some of the progress that has been made in the lab to date. [DARPA's Project Phoenix (Video)]


This progress includes the development and testing of prototype satellite-grappling technology and tele-operations control software, among other gear, according to the video.


The Phoenix program plans to use a robot mechanic to grab still-working antennas from the many retired and dead satellites in geosynchronous orbit, about 22,000 miles (35,406 kilometers) above Earth. These large, bulky antennas would then be attached to small “satlets,” or nanosatellites, launched from Earth, creating new space systems on the cheap.


The goal is to demonstrate a way to turn part of the ever-expanding cloud of space junk around our planet into space resources, saving money in the process, DARPA officials have said. The first on-orbit demonstration mission is targeted for 2015.


“We have a long way to go, but we are laying the foundation for improving how we build space systems, with the goal of changing the economic model for space operations,” Barnhart said.


Phoenix isn’t the only satellite-servicing effort currently underway. NASA’s Robotic Refueling Mission (RRM), which was delivered to the International Space Station in July 2011, is testing out the technology necessary to repair and refuel satellites on orbit.


The latest round of RRM experiments is going on right now, with the space station’s two-armed Dextre robot attempting to snip wires, unscrew caps and pump simulated fuel using the RRM test module, NASA officials have said.


Follow SPACE.com senior writer Mike Wall on Twitter @michaeldwall or SPACE.com @Spacedotcom. We’re also on Facebook and Google+


Copyright 2013 SPACE.com, a TechMediaNetwork company. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Space and Astronomy News Headlines – Yahoo! News





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Where is aid for Syria going?






STORY HIGHLIGHTS


  • The U.S. ambassador to Syria says the U.S. has provided $210 million in humanitarian aid

  • The assistance has to be discrete, he said, to protect workers from being targeted

  • Washington has also provided $35 million worth of assistance to Syria's political opposition

  • Ambassador: We can help, but it's up to Syrians to find their way forward




(CNN) -- It has been more than a year since the United States government withdrew its ambassador to Syria and closed its embassy in Damascus.


On Thursday, that ambassador returned to the region along with a U.S. delegation, touring a Syrian refugee camp in Turkey to bring more attention to the growing humanitarian crisis. As the civil war has intensified in Syria, hundreds of thousands of people have sought refuge in Turkey, Lebanon, Jordan and other neighboring countries.


Ambassador Robert Ford gave an exclusive interview to CNN's Ivan Watson and described what the U.S. is doing to help the refugees and the Syrian opposition.


Ivan Watson: The U.S. has given $210 million in aid (to Syria), but I think that there is a perception problem because no one can actually point at what that help is. So people conclude there is no help.


Robert Ford: The assistance is going in. It's things like tents, it's things like blankets, it's things like medical equipment, but it doesn't come in big boxes with an American flag on it because we don't want the people who are delivering it to be targeted by the Syrian regime.


The regime is going after and killing people who are delivering supplies. You see them bombing even bakeries and bread lines. So we're doing that, in part, to be discrete.



The assistance is going in ... but it doesn't come in big boxes with an American flag on it.
Robert Ford, U.S. ambassador to Syria



The needs are gigantic. So even though a great deal of American materials and other countries' materials are arriving, the needs are still greater. And that's why we're going to Kuwait to talk to the United Nations and to talk to other countries about how we can talk together to provide additional assistance.


Watson: The head of the Syrian National Coalition, which the U.S. government has backed, came out with a statement very critical of the international community, saying we need $3 billion if you want us to have any say on events on the ground inside Syria. Where is that money?


Ford: (Sheikh Ahmed) Moaz al-Khatib is a good leader, and we think highly of him and we have recognized his (coalition) as the legitimate representative of the Syrian people. And, of course, he wants to get as many resources as possible because of the humanitarian conditions that I was just talking about. Especially the ones inside Syria.


But we also, at the same time, have to build up those (aid) networks I was talking about. In some cases, they start out with just a few people. We don't need just a few people, we need hundreds of people, thousands of people on the inside of Syria organized to bring these things in.


And so step by step, the Syrians, Moaz al-Khatib and his organization, need to build that capacity. We can help build it, we can do training and things like that. But in the end, Syrians have to take a leadership role in this.


Watson: Is Washington giving money to the Syrian National Coalition?


Ford: We absolutely are assisting the (coalition), with everything from training to, in some cases, limited amount of cash assistance so that they can buy everything ranging from computers to telephones to radios.








Frankly, if not for the American assistance in many cases, the activists inside Syria wouldn't be in contact with the outside world. It's American help that keeps them in contact with the outside world.


Watson: But, how much assistance has this coalition gotten from the U.S.?


Ford: So far, we've allocated directly to the coalition in the neighborhood of $35 million worth of different kinds of equipment and assistance. And over the next few weeks, couple of months, we'll probably provide another $15 million worth of material assistance.


Watson: Washington recently blacklisted Jabhat al-Nusra, the Nusra Front, calling it a terrorist organization even though inside Syria, it has attracted a lot of respect for its victories and for comparative lack of corruption compared to many rebel groups. How has blacklisting the Nusra Front helped the Syrian opposition?


Ford: We blacklisted the Nusra Front because of its intimate links with al Qaeda in Iraq, an organization with whom we have direct experience, which is responsible for the killings of thousands of Iraqis, hundreds of Americans. We know what al Qaeda in Iraq did and is still doing, and we don't want it to start doing that in Syria -- which is why we highlighted its incredibly pernicious role.


I think one of the things that our classification of Nusra as a terrorist group did is it set off an alarm for the other elements of the Free Syrian Army. There was a meeting of the Free Syrian Army to set up a unified command, (and) Nusra Front was not in that meeting -- which we think is the right thing to do. As Syrians themselves understand that Nusra has a sectarian agenda, as they understand better that Nusra is anti-democratic and will seek to impose its very strict interpretation of Islam on Syria -- which historically is a relatively moderate country in terms of its religious practices -- as Syrians understand that better, I think they will more and more reject the Nusra Front itself.


Watson: But I've seen the opposite. As I go into Syria, I hear more and more support and respect for the Nusra Front, and more and more criticism for the U.S. government each time I go back.


Ford: I think that people, Ivan, are still understanding what Nusra is. I have heard criticism from the Nusra Front from people like Moaz al-Khatib who, in Marrakesh (Morocco) in his speech, said he rejected the kind of ideology which backs up Nusra. ... We have heard that from the senior commander of the Free Syrian Army as well. And so the more people understand inside Syria what Nusra is and represents, I think they will agree that is not the group on which to depend for freedom in Syria.


Watson: Do you think the U.S. government could have done more?


Ford: I think the Syrians, as I said, are the ones who will bring the answer to the problem -- just as in Iraq, Iraqis brought the solution to the Iraq crisis, to the Iraq war. The Americans can help, and we helped in Iraq, but ultimately it wasn't the Americans. Despite our help, it was Iraqis.


In Syria, again, it has to be Syrians who find their way forward. Twenty-three million Syrians need to find their way forward. We can help, and we are helping: $210 million in humanitarian assistance, $50 million to help the political opposition get organized for the day after (Bashar) al-Assad goes. These are important bits of help. But ultimately, it's not the American help. It's the Syrians themselves.







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Wrigley rooftops offer to let Cubs sell ads on their buildings

Representatives of the Wrigleyville Rooftops Association proposed a plan to erect LED billboards on rooftops and share revenue with the Chicago Cubs. (Chris Walker, Chicago Tribune)









The relationship between the Chicago Cubs and the rooftop businesses overlooking Wrigley Field sounds about as bitter as the Cubs-Cardinals rivalry.

George Loukas, who owns three rooftop clubs and other businesses in the North Side Wrigleyville neighborhood, threatened to sue the the team if it erects billboards in the outfield that block rooftop views into the stadium.






"We have a right to defend our position," Loukas said Friday. "Yes, we would go to court."

He made his comments a news conference he and other rooftop owners held to present to the public an alternative to outfield signs the Cubs say they want to help pay for a $300 million renovation of the 99-year-old ballpark. They offered to let the Cubs place signs on their buildings and forego all the revenues the signs would generate.

But the Cubs did not warmly receive the proposal.

"If the rooftop owners have a new plan, they would be well advised to discuss it with the team instead of holding press conferences, because a deadline is fast approaching for the team and the city of Chicago to move forward," said Dennis Culloton, a spokesman for the owners of the Cubs.

The team's response upset the rooftop owners, who say they presented a general outline of their plan three months ago in a private meeting with Cubs' officials as well as at a meeting the local alderman held Wednesday night that team representatives attended.

The owners of the 16 rooftop clubs, who share a portion of their tickets sales with the team, contend the new signs will put them out of business.

The dispute threatens to hold up a deal that the team is negotiating with Mayor Rahm Emanuel's administration to modernize the "Friendly Confines" without tax dollars. The Cubs seek to amend city ordinances that regulate team operations, from the number of night games to the number of ads in the ballpark. Without the zoning and landmark restrictions, the team's owners say they will pay for a long-overdue face-lift of their stadium.

Despite a record of futility on the field, the Cubs remain a huge draw primarily because of the intimacy, charm and distinctive urban setting of Wrigley Field. But the Ricketts family, who bought the team in 2009, say the oldest stadium in the National League is in desperate need of makeover to improve player and fan amenities.

The family's renovation project includes a structural overhaul that would expand concourses, increase restroom capacity and create a new player clubhouse. The family wants to grow revenues from the stadium by adding restaurants, lounges, club seats, concession areas and expanding luxury suites. The owners showed renderings of the changes at the Cubs Convention last weekend.

The owners also want to install more and bigger signs but haven't provided details about where they would be placed. The most obvious, and lucrative, position would be along the back of the bleachers, which could potentially block the bird's-eye views from the rooftops. Without those views, the rooftop business don't have much to sell, Loukas said.

"I don't think you would spend $5 to go sit up on a rooftop to look at the back of a billboard," Loukas said.

The rooftop owners have a lot to lose. In 2004, the rooftop owners and the Cubs settled a lawsuit by striking a 20-year deal that allowed the clubs to keep operating while paying the team 17 percent of their sales.

The rooftop owners used the security of the agreement to spend millions of dollars renovating their buildings and increasing capacity. Beth Murphy, owner of the Murphy's Bleachers bar and rooftop, said the royalty collectively amounts to $3.5 million to $4 million a year for the Cubs. Overall seasonal revenue for the rooftops appears to be about $23 million.

"There's a reason that the Cubs pull (in crowds)," Murphy said. "I believe it's the synergy between the neighborhood and the ballpark."

The rooftop owners, who have united to form a loosely knit association, say new signs in the outfield would not only violate their contract with the team but also the landmark status that was placed on Wrigley Field in 2004.

They proposed to let the Cubs sell advertising on their buildings that would been seen on several digital screens. The rooftop owners hired a marketing consultant who calculated that rooftop signs would generate $10 million to $20 million in annual revenue.

But Culloton said the team would bring in more money from advertising atop the back wall of the bleachers. Chicago Tribune parent Tribune Co. owns 5 percent of the Cubs.

Ald. Tom Tunney, 44th ward, said "The advertising proposal from the rooftops can be part of the larger picture for preserving Wrigley," he said.

The mayor's office reiterated what Emanuel said earlier in the week that he would like all parties to work together to craft a solution.

But that may be difficult given the feelings of resentment some rooftop owners have for the Cubs. When asked if he feels the team is trying to diminish the value of the rooftop properties so they could eventually acquire them, Loukas said, "Absolutely, absolutely."

Twitter @ameetsachdev

asachdev@tribune.com





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S&P rises for seventh day but 1,500 too steep a climb

NEW YORK (Reuters) - The smallest of gains gave the Standard & Poor's 500 its seventh straight winning day on Thursday, but the index failed to hold above the 1,500 line, restrained by Apple's worst day in more than four years.


Apple Inc slid 12.4 percent to $450.50 a day after it posted revenue that missed Wall Street's forecast as iPhone sales were poorer than expected.


The sharp drop wiped out nearly $60 billion in Apple's market capitalization to less than $423 billion, leaving the company vulnerable to losing its status as the most valuable U.S. company to second-place ExxonMobil , at $416.5 billion.


The S&P 500, however, managed to hit its longest winning streak since October 2006.


"The market has sent the message it is no longer driven by the whims of Apple," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York.


The S&P 500 briefly traded above 1,500 for the first time since December 12, 2007, but failed to hold above it, indicating that momentum is waning and a pullback is in the charts.


"If the market had a little bit more excitement to it, momentum players would have jumped after it broke through 1,500. Investors know the market is a little bit ahead of itself," Polcari said.


Economic data helped buoy equities as U.S. factory activity grew the most in nearly two years in January and new claims for jobless benefits dropped to a five-year low last week, giving surprisingly strong signals on the economy's pulse.


At the same time, Chinese manufacturing grew this month at the fastest pace in about two years, while data suggesting German growth picked up boosted hopes for a euro-zone recovery.


"PMI in Asia, Europe, and obviously, here in the United States, is moving in the right direction, and that's stuff people should be excited about," Polcari said.


The Dow Jones industrial average <.dji> rose 46 points or 0.33 percent, to 13,825.33 at the close. The S&P 500 <.spx> inched up just 0.01 of a point, or 0 percent, to finish at 1,494.82. The Nasdaq Composite <.ixic> dropped 23.29 points or 0.74 percent, to end at 3,130.38, with most of that loss on Apple's slide.


The broader Russell 2000 index <.rut> also hit a milestone as it closed above 900 points for the first time.


Video streaming service Netflix Inc surprised Wall Street with a quarterly profit after it added nearly 4 million customers in the United States and abroad. Netflix shares surged 42.2 percent to $146.86, its biggest percentage jump ever.


Earnings have helped drive the stock market's recent rally. Thomson Reuters data through early Thursday showed that of the 133 S&P 500 companies that have reported earnings so far, 66.9 percent have exceeded expectations - above the 65 percent average over the past four quarters.


About 6.8 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average during January 2012 of about 6.93 billion shares.


Roughly five issues rose for every four that fell on both the NYSE and Nasdaq.


(Editing by Jan Paschal)



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Voice of Te'o prankster? Couric plays voicemails


NEW YORK (AP) — The person Manti Te'o says was pretending to be his online girlfriend told the Notre Dame linebacker "I love you" in voicemails that were played during his interview with Katie Couric.


Taped earlier this week and broadcast Thursday, the hour-long talk show featured three voicemails that Te'o claims were left for him last year. Te'o said they were from the person he believed to be Lennay Kekua, a woman he had fallen for online but never met face-to-face.


After the first message was played, Te'o said: "It sounds like a girl, doesn't it?"


"It does," Couric responded.


The interview was the All-American's first on camera since his tale of inspired play after the deaths of his grandmother and girlfriend on the same day in September unraveled as a bizarre hoax in an expose by Deadspin.com on Jan. 16.


Te'o's parents appeared with him for part of the interview and backed up his claim that he wasn't involved in the fabrication, saying they, too, had spoken on the phone with a person they believed to be Kekua.


Couric addressed speculation that the tale was concocted by Te'o as a way to cover up his sexual orientation. Asked if he were gay, Te'o said "no" with a laugh. "Far from it. Faaaar from that."


He also said he was "scared" and "didn't know what to do" after receiving a call on Dec. 6 — two days before the Heisman Trophy presentation — from a person who claimed to be his "dead" girlfriend.


The first voicemail, he said, was from what was supposed to be Kekua's first day of chemotherapy for leukemia.


"Hi, I am just letting you know I got here and I'm getting ready for my first session and, um, just want to call you to keep you posted. I miss you. I love you. Bye," the person said.


In the second voicemail, the person was apparently upset by someone else answering Te'o's phone.


The third voicemail was left on Sept. 11, according to Te'o, the day he believed Kekua was released from the hospital and the day before she "died."


"Hey babe, I'm just calling to say goodnight," the person on the voicemail said. "I love you. I know that you're probably doing homework or you're with the boys. ... But I just wanted to say I love you and goodnight and I'll be ok tonight. I'll do my best. Um, yeah, so get your rest and I'll talk to you tomorrow. I love you so much, hon. Sweet dreams."


Couric suggested the person who left those messages might have been Ronaiah Tuisasosopo, a 22-year-old man from California, who Te'o said has apologized to him for pulling the hoax.


"Do you think that could have been a man on the other end of the phone?" she asked.


"Well, it didn't sound like a man," Te'o said. "It sounded like a woman. If he somehow made that voice, that's incredible. That's an incredible talent to do that. Especially every single day."


Tuiasosopo has not spoken publicly since news of the hoax broke. The Associated Press has learned that a home in California where Te'o sent flowers to the Kekua family was once a residence of Tuiasosopo and has been in his family for decades.


Also on Thursday, the woman whose pictures were used in fake online accounts for Kekua said Tuiasosopo confessed to her in a 45-minute phone conversation as the scheme unraveled.


Diane O'Meara spoke with The Associated Press in a telephone interview. She said Tuiasosopo told her he'd been "stalking" her Facebook profile for five years and stealing photos.


O'Meara's attorney, Jim Artiano, said they had not decided on whether to take any legal action.


The 23-year-old O'Meara, of Long Beach, Calif., said she knew Tuiasosopo from high school and he contacted her through Facebook on Dec. 16. She said that, over the next three weeks, Tuiasosopo got in touch with her several times, attempting to get photos and video of O'Meara. She said he made up a story about wanting them to help cheer up a cousin who was injured in a car crash.


O'Meara learned her identity had been stolen on Jan. 13 when she was contacted by Deadspin.com.


The next day she got in touch with Tuiasosopo.


"When I contacted Ronaiah I got a very bizarre vibe from him, he became very nervous, he wasn't asking the questions I expected. He was asking 'Who contacted you? What did they say?'" O'Meara said.


Later that day, he confessed, O'Meara said. She said she asked Tuiasosopo why he didn't simply stop the hoax.


"He told me he wanted to end the relationship," O'Meara said. "He said he wanted to stop the relationship between Lennay and Manti, but Manti didn't want Lennay to break up with him ... He said he tried to stop the game many times."


When news of the hoax broke a few days later, O'Meara said she received a text from Tuiasosopo asking her to call him as soon as possible. O'Meara said she didn't respond.


___


Associated Press writer Tami Abdollah contributed to this report from Los Angeles.


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Neanderthal cloning? Pure fantasy




A display of a reconstruction of a Neanderthal man and boy at the Museum for Prehistory in Eyzies-de-Tayac, France.




STORY HIGHLIGHTS


  • Arthur Caplan: It would be unethical to try and clone a Neanderthal baby

  • Caplan: Downsides include a good chance of producing a baby that is seriously deformed

  • He says the future belongs to what we can do to genetically engineer and control microbes

  • Caplan: Microbes can make clean fuel, suck up carbon dioxide, clean fat out of arteries




Editor's note: Arthur Caplan is the Drs. William F and Virginia Connolly Mitty professor and director of the Division of Bioethics at New York University Langone Medical Center.


(CNN) -- So now we know -- there won't be a Neanderthal moving into your neighborhood.


Despite a lot of frenzied attention to the intentionally provocative suggestion by a renowned Harvard scientist that new genetic technology makes it possible to splice together a complete set of Neanderthal genes, find an adventurous surrogate mother and use cloning to gin up a Neanderthal baby -- it ain't gonna happen anytime soon.


Nor should it. But there are plenty of other things in the works involving genetic engineering that do merit serious ethical discussion at the national and international levels.



Arthur Caplan

Arthur Caplan



Some thought that the Harvard scientist, George Church, was getting ready to put out an ad seeking volunteer surrogate moms to bear a 35,000-year-old, long-extinct Neanderthal baby. Church had to walk his comments back and note that he was just speculating, not incubating.


Still cloning carries so much mystery and Hollywood glamour thanks to movies such as "Jurassic Park," "The Boys From Brazil" and "Never Let Me Go" that a two-day eruption of the pros and cons of making Neanderthals ensued. That was not necessary. It would be unethical to try and clone a Neanderthal baby.



Why? Because there is no obvious reason to do so. There is no pressing need or remarkable benefit to undertaking such a project. At best it might shed some light on the biology and behavior of a distant ancestor. At worst it would be nothing more than the ultimate reality television show exploitation: An "Octomom"-like surrogate raises a caveman child -- tune in next week to see what her new boyfriend thinks when she tells him that there is a tiny addition in her life and he carries a small club and a tiny piece of flint to sleep with him.


The downsides of trying to clone a Neanderthal include a good chance of killing it, producing a baby that is seriously deformed, producing a baby that lacks immunity to infectious diseases and foods that we have gotten used to, an inability to know what environment to create to permit the child to flourish and a complete lack of understanding of what sort of behavior is "normal" or "appropriate" for such a long-extinct cousin hominid of ours.


When weighed against the risks and the harm that most likely would be done, it would take a mighty big guarantee of benefit to justify this cloning experiment. I am willing to venture that the possible benefit will never, ever reach the point where this list of horrible likely downsides could be overcome.




Even justifying trying to resurrect a woolly mammoth, or a mastodon, or the dodo bird or any other extinct animal gets ethically thorny. How many failures would be acceptable to get one viable mastodon? Where would the animal live? What would we feed it? Who would protect it from poachers, gawkers and treasure hunters? It is not so simple to take a long dead species, make enough of them so they don't die of isolation and lack of social stimulation and then find an environment that is close enough and safe enough compared with that which they once roamed.


In any event the most interesting aspects of genetic engineering do not involve making humans or Neanderthals or mammoths. They involve ginning up microbes to do things that we really need doing such as making clean fuel, sucking up carbon dioxide, cleaning fat out of our arteries, giving us a lot more immunity to nasty bacteria and viruses and helping us make plastics and chemicals more efficiently and cheaply.


In trying to make these kinds of microbes, you can kill all you want without fear of ethical condemnation. And if the new bug does not like the environment in which it has to exist to live well, that will be just too darn bad.


The ethical challenge of this kind of synthetic biology is that it can be used by bad guys for bad purposes. Biological weapons can be ginned up and microbes created that only infect people with certain genes that commonly associate with racial or ethnic groups.


Rather than worry about what will happen to real estate values should a new crop of "Flintstones" move in down the street, our public officials, religious groups and ethicists need to get serious about how much regulation the genetic engineering of microbes needs, how can we detect what terrorists might try to use, what sort of controls do we need to prevent accidents and who is going to pay if a bug turns out to cause more harm than good.


We love to think that the key to tomorrow lies in what humanity can be designed or empowered to do. Thus, the fascination with human cloning. In reality, at least for a long time to come, the future belongs to what we can do to design and control microbes. That is admittedly duller, but it is far better to follow a story that is true than one such as Neanderthal cloning that is pure, speculative fantasy.


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The opinions expressed in this commentary are solely those of Arthur Caplan.






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Quinn signs sex-abuse education mandate

Teachers across Illinois will begin teaching their students on how they can protect themselves against sexual abuse and assaults. (WGN - Chicago)









After watching Gov. Pat Quinn sign into law a new mandate for child sex-abuse education in Illinois schools, the woman behind that measure will be hitting the road to push the cause nationwide.


On Thursday, Quinn signed "Erin's Law" at the Children's Advocacy Center of North and Northwest Cook County in Hoffman Estates. That's where, 14 years ago, a then-13-year-old Erin Merryn first spoke up about sexual abuse she had endured.


"You do not know how joyous this is for me, how hard I've worked for this," Merryn said of the law, which extends state-mandated sexual abuse and assault awareness and prevention efforts to elementary and middle schools. Previously, only high schools were required to teach it.








Although it's an unfunded mandate, Merryn, 27, said the law lets school districts decide how to implement it. Districts can choose either to use and pay for existing research-based curriculum, or train teachers on how to educate their students.


"Schools don't just need to hire someone to come in (from) outside the school," Merryn said. "You've got the staff right there that you already pay that are capable of teaching this, with the proper training."


Rep. Fred Crespo, D-Hoffman Estates, said "Erin's Law" is the first unfunded school mandate in two years. Crespo, vice-chair for the Elementary and Secondary Education Committee, said unfunded mandates are always a concern and an issue.


"We're very convinced we just need to make this happen," Crespo said. "We have other unfunded mandates. Somehow the school districts do manage a way to do those things."


With children as young as preschoolers, the education will be tailored for age appropriateness, Merryn said. For some, it could be as simple as teaching them to whom they could turn if they feel uncomfortable.


Lawmakers at the event praised Merryn for having the courage to quit her job as a youth and family counselor in 2010 to take on a national awareness campaign. Merryn became devoted to the cause after being sexually abused as a child between the ages 6 to 8, and again from age 11 to 13.


Merryn's campaign also focuses on support for child advocacy centers, ending stigma about sex abuse and reminding adults to be aware and to act.


At the bill signing, Quinn invited Merryn to a national governor's meeting next month. The Schaumburg native and author is working to get similar laws passed in all 50 states. It took Merryn three years to get the Illinois state law passed. She had tears in her eyes as she accepted Quinn's invitation, saying: "You will save me many, many years."


saho@tribune.com





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