Wall Street bounces back after sell-off; results a boost

NEW YORK (Reuters) - Stocks climbed on Tuesday, recovering a day after the market's biggest sell-off since November, as stronger-than-expected earnings brightened the profit picture.


Dell Inc's stock rose after the world's No. 3 computer maker agreed to be taken private in a $24.4 billion deal, the largest leveraged buyout since the 2008-2009 financial crisis. The stock gained 1.1 percent to $13.42.


All 10 S&P sectors were higher, and the S&P 500 and Nasdaq gained more than 1 percent.


The market's bounce follows a sell-off on Monday that gave the S&P 500 its biggest percentage decline since mid-November. The benchmark remains up 6 percent since the start of the year and is less than 4 percent away from its all-time closing high of 1,565.15 from October 2007.


Analysts said fourth-quarter results have been among factors helping to boost stocks. On Tuesday, Archer Daniels Midland reported revenue and adjusted fourth-quarter earnings that beat expectations, boosted by strong global demand for oilseeds. Shares rose 3.3 percent to $29.38.


"There's not a huge upside surprise by any means, but we're definitely seeing slightly better-than-expected earnings overall," said Bryant Evans, portfolio manager at Cozad Asset Management, in Champaign, Illinois.


The Dow Jones industrial average <.dji> was up 99.22 points, or 0.71 percent, at 13,979.30. The Standard & Poor's 500 Index <.spx> was up 15.58 points, or 1.04 percent, at 1,511.29. The Nasdaq Composite Index <.ixic> was up 40.41 points, or 1.29 percent, at 3,171.58.


The market shot higher at the start of the year after U.S. lawmakers were able to come to a last-minute agreement to avoid a national "fiscal cliff," but questions on spending cuts remain.


President Barack Obama on Tuesday urged Congress to pass a small package of spending cuts and tax reforms. Though the plan was quickly rebuffed by Republican leaders, investors are looking for an agreement.


"I think there's some hopefulness out there that a reasonable compromise will be made," Evans said.


Also in earnings, Estée Lauder Cos Inc reported a higher quarterly profit and raised its full-year profit forecast. The stock rose 6 percent to $64.71.


With results in from more than half of the S&P 500 companies, 69 percent have beaten profit expectations, compared with the 62 percent average since 1994 and the 65 percent average over the past four quarters. Sixty-six percent of companies have beaten on revenue.


Fourth-quarter earnings for S&P 500 companies are expected to rise 4.5 percent, according to the data, above the 1.9 percent forecast at the start of earnings season.


On the down side, McGraw-Hill shares slumped 10.7 percent to $44.92 after the U.S. Justice Department filed a civil lawsuit seeking $5 billion over mortgage bond ratings. Standard & Poor's, a McGraw Hill unit, was accused of inflating ratings and understating risk out of a desire to gain more business from investment banks.


On Monday, McGraw-Hill stock suffered its worst one-day decline since the 1987 market crash.


Volume was roughly 6.7 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.


Advancers outpaced decliners on the NYSE by nearly 11 to 4 and on the Nasdaq by about 3 to 1.


(Editing by Kenneth Barry and Nick Zieminski)



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Her knee shredded, Lindsey Vonn done for season


SCHLADMING, Austria (AP) — All it took was a moment. Lindsey Vonn landed hard and tumbled face first with a piercing shriek.


Just like that, the star American skier was on the ground with two torn ligaments in her right knee and a broken bone in her lower leg.


The cascading fall down the slope during the super-G at the world championships Tuesday knocked out the four-time World Cup champion for the rest of the season, the latest and most serious in a string of injuries for Vonn at skiing's biggest events.


The U.S. team said in a statement it expects her back for the next World Cup season and the 2014 Sochi Olympics, which start a year from this week.


The harrowing accident came after Vonn was lifted into the air off a jump in the opening race at the championships. As she hit the ground, her right leg gave way and she spun down face first, throwing an arm out to protect herself. She ended up on her back as she smashed through a gate.


On the television feed, Vonn was clearly heard screaming an expletive as she landed, then a despairing "Yes, yes," when someone asked, "Are you hurt?"


Race leader and eventual champion Tina Maze watched with her mouth agape. The concern also was obvious on the face of Vonn's sister, Laura Kildow, who has been traveling with her full time this season.


For 12 minutes, Vonn lay on the snow getting medical treatment before being airlifted by helicopter to a hospital in Schladming.


Vonn tore her anterior cruciate ligament and medial collateral ligament in her right knee, U.S. ski team medical director Kyle Wilkens said in a statement. The broken bone was described as a "lateral tibial plateau fracture."


Christian Kaulfersch, the assistant medical director at the worlds, said Vonn left the Schladming hospital on Tuesday afternoon and will have surgery in another hospital. "She first wanted to go back to the team hotel to mentally deal with all what has happened," Kaulfersch said.


Vonn's father, Alan Kildow, spoke with her by phone and said that she's, "mad at the way things turned out." His daughter told him that she landed in a clump of sugar snow, or ice crystals, that caused her to fall forward, he said.


"She's a tough character. A very determined and tough character," Kildow told The Associated Press in a phone interview. "She will be back."


Kildow said that surgery could take place as soon as this weekend, likely at the Steadman Clinic, in Vail, Colo. Recovery time varies, according to Dr. Tom Hackett, an orthopedic surgeon at the clinic and the team physician for the U.S. snowboard squad.


But Vonn could be looking at six-to-eight months before she's back on skis.


"It's not like at six months you say, 'OK, you can get back on a super-G course," Hackett said. "There's a progression to getting back on skis, getting back to taking some easy runs, getting back to some gates, and working your way back to some steeper terrain. There's a whole return to snow progression that we've developed over many years."


Time enough to get back for Sochi?


"I think so," Hackett said. "I would be very optimistic she could come back strong. She's a fierce competitor. She's a fighter and chances are that she will — I would think — essentially take all of that athletic energy and put it into her rehabilitation. There's a really good chance she could come back as strong as ever."


Comebacks are nothing new for Vonn, who has also been afflicted by injuries at her last six major championships — from a thumb she sliced on a champagne bottle at the 2009 worlds in Val d'Isere, France, to a bruised shin that she cured with Austrian cheese at the Vancouver Olympics.


This one, however, could prove the biggest test yet for the 28-year-old who won the downhill at the 2010 Vancouver Olympics.


Vonn took a month off this season after being hospitalized for an intestinal illness in November, and had just regained her form with two wins last month.


That was evident at the start of her Tuesday's run. She led Maze by 0.04 seconds at the first checkpoint and was just 0.12 back at the second interval and seemingly on her way to a medal, if not victory.


Exactly what went wrong was debated by competitors and officials at the championships.


The start of the race was delayed by 3½ hours because of fog hanging over the course and it began in waning light at 2:30 p.m local time. Even before Vonn's crash, a course worker fell and also had to be airlifted. He was reported to have broken his nose.


All the delays made for what skiers call flat light — overcast and dreary conditions — when Vonn raced.


"Lindsey did a great job on top and Lindsey has won a lot of races in flat light so the flat light was definitely not a problem," U.S. Alpine director Patrick Riml told the AP.


"We are upset obviously with what happened but if you don't know the facts and why they decided to start and what the weather forecast was it's hard to say without any reasoning," Riml said. "And they probably had a reason, otherwise they wouldn't have started."


Atle Skaardal, women's race director for the International Ski Federation, defended the decision to go ahead with the event.


"I can confirm that the visibility was great, there were no problems, and the course was also in good shape," he said. "I don't see that any outside factors played a role in this accident. ... The other factors were like they were supposed to be for ski racing."


Vonn's list of injuries at major championships is long.


Two years ago, she pulled out midway through the last worlds in Garmisch-Partenkirchen, Germany, because of a mild concussion. At the 2010 Vancouver Olympics, Vonn skied despite a severely bruised shin to win the downhill and take bronze in the super-G.


At the 2009 worlds in Val d'Isere, she sliced her thumb on a champagne bottle after sweeping gold in the downhill and super-G, forcing her out of the giant slalom. At the 2007 worlds in Are, Sweden, Vonn injured her knee in training and missed her final two events.


And at the 2006 Turin Olympics, she had a horrific crash in downhill training and went directly from her hospital room to the mountain to compete in four of her five events.


The conditions Tuesday varied from racer to racer, and as the light began to fade even more, organizers stopped the race after only 36 of the 59 skiers had come down.


Maze skied immediately before Vonn.


"I saw it was a very high jump, so I knew I had to take the right line to make the next gate," she said. "World championship races often have special conditions and the mistakes from the girls were not because of the slope."


The two racers who started immediately after Vonn, former overall winner Maria Hoefl-Riesch of Germany and local favorite Anna Fenninger of Austria, each skied off course. In all, six women who started the course failed to finish. Still, Skaardal said he never thought about stopping the race.


"It's not a very difficult course but in some parts you couldn't see anything," said Fabienne Suter of Switzerland, who finished fifth.


Vonn's teammate Julia Mancuso also thrived in the difficult conditions and won the bronze medal.


"It's the same for everybody," U.S. speed coach Chip White said. "Everyone had to wait for a long time and that's always difficult. And the holds were every 15 minutes so it really doesn't give you a chance to go and do something else. You're always kind of on edge at the ready. It's a difficult situation but everybody had the same difficult situation."


Not long after Vonn was injured, NBC hosted a news conference in New York to discuss its coverage of the Sochi Games. A poster of a smiling Vonn hung in the room next to one of snowboarder Shaun White, evidence of the network's unsurprising expectations that she would be one of the biggest stars in Sochi.


The network's executives chose to put a positive spin on the injury.


"We expect her to be the comeback Olympian of the year," NBC Sports Group Chairman Mark Lazarus said.


___


Associated Press writer Eric Willemsen in Schladming and AP Sports Writers Pat Graham and Rachel Cohen contributed to this report.


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What follows N. Korea's nuclear test?






STORY HIGHLIGHTS


  • Lopez: Uranium-based blast would pose new challenge to U.N. Security Council

  • Indicates Pyongyang has advanced centrifuge technologies and related systems

  • North Korea's young leader appears to care little about what U.N. or China think

  • Product-based sanctions may stifle the North's ability to continue nuclear program




Editor's note: George A. Lopez holds the Hesburgh Chair in Peace Studies at the Kroc Institute, University of Notre Dame. He is a former member, U.N. Panel of Experts on North Korea, or the Democratic People's Republic of Korea (DPRK).


Indiana, U.S. (CNN) -- North Korea will soon test its third nuclear device. Earlier tests in 2006 and 2009 drew worldwide condemnation, Security Council sanctions and led Pyongyang to withdraw from the six-party talks.


In resolution 2087, passed on January 22, the Council imposed new sanctions on North Korea for its December 12 space missile launch and made clear that new violations would be dealt with harshly.


READ: N.Korea: Close to nuclear missile?


In response, North Korea rejected Council legitimacy, asserted their right to nuclear weapons and deterrence and proclaimed it would soon conduct a new nuclear test.


In addition the North engaged in some strong saber-rattling aimed at South Korea.


READ: For South Koreans, a familiar tone from Pyongyang










Because some analysts believe this will be a uranium explosion, it is a game-changer for the region and poses new and unfavorable challenges to the Security Council. A successful uranium test indicates that Pyongyang has advanced centrifuge technologies and related support systems. It means that North Korea, if left unchecked, can both produce and export such material, raising new concerns that Pyongyang and Iran cooperate in such developments.


Politically the test will reveal that the new regime of Kim Jong-Un exceeds the defiance to U.N. dictates of his predecessors in pursuing his nation's nuclear goals. Neither the prospect of stronger sanctions, nor the growing discontent of Russia and China with his behavior, appears to deter North Korea's young leader.


OPINION: Rescind North Korea's license to provoke


These dilemmas confront the permanent five members of the Council with a harsh reality check regarding their unity of action and what message to convey to the north via what particular sanctions. If the Council follows the logic of resolution 2087, it will impose more extensive and punishing sanctions than ever before. Such sanctions will blacklist companies, government agencies and individuals long known for their role in illicit technology procurement and sanctions evasion. They will expand financial sanctions into areas of banking that would require substantial transnational enforcement to bite, and they may call upon countries in the region to inspect almost all North Korean trade. The economic squeeze and further isolation of the DPRK will increase substantially.


READ: Why sticks don't work with North Korea


These sanctions would require China to play an enforcement role against North Korean economic actors it has hitherto resisted. Seizing prohibited goods that pass through Dalian harbor and other trans-shipment points, as well as shutting down various border activities, would also fall to China. These extensive sanctions as punishment operate from the assumption that at some point the north will forego its nuclear program in order to survive as an authoritarian state.


But there may be an alternative to the punishment approach that could bring Beijing on board with effective Council action. China might well accept specialized trade sanctions aimed to degrade the DPRK's ability to sustain the nuclear program for lack of material and due to prohibitive costs of sanctions busting, as a way of conveying to Pyongyang that it must return to the negotiating table.


The logic of extensive new product-focused sanctions is that DPRK can make -- or jerry-rig -- only a small fraction of the advanced technologies and specialty materials that sustain an ongoing uranium enrichment program. To choke off these materials -- and the illicit means of financing them -- provides the Council with a possibility to make it technically impossible for DPRK to have a functioning uranium-based bomb program.


Precise lists of dozens of the materials used in centrifuge operation that should be sanctioned are already recorded for the Council in the reports of their Panel of Experts for the DPRK. Lists of related materials have also been developed by the Nuclear Supplies Group. To date the permanent five have sanctioned only a very few of the materials on either list. The Council also needs member states to strengthen export, customs and financial controls on dual-use items that are "below grade" of those newly sanctioned items. This will stifle the North's ability to upgrade or jerry-rig these hitherto unsanctioned items as a way of maintaining their program.


READ: Five things to know about North Korea's planned nuclear test


Also critical to the success of this choking of supplies would be stricter controls of the illicit financing that supports such trade. Putting strong enforcement behind the 2087 resolution's concern about DPRK cash flows, especially through its embassies, is also in order.


Another, somewhat unprecedented, sanctions option would be a Council-issued travel ban on North Korea placed on all scientists, engineers and others with specialized expertise in centrifuge technologies and uranium enrichment.


Political agreement on these measures will not be easy to attain among the permanent five nations of the Security Council. But a product-focused sanctions approach -- especially leveraged to aim for more direct diplomatic engagement with the DPRK while denying them material to grow their illicit programs -- has the best chance of gaining Council consensus.


The opinions expressed in this commentary are solely those of George A. Lopez.






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25-cent gym shoe tax could fund aid for dropouts









SPRINGFIELD—





— Buying a new pair of running shoes in Illinois could cost a quarter more if a measure to tax gym shoes gets traction at the Capitol.


The idea behind the 25-cent shoe tax is to pump more money into programs that help high-school dropouts from low-income homes get jobs in the construction trades or get back on track to attend college.





"There are young people everywhere that are looking for a positive outlet that they might not find otherwise," said Rep. Will Davis, a Homewood Democrat who's sponsoring the shoe tax.


Business groups and shoe store owners aren't keen on the idea, suggesting the new tax will hurt the competitiveness of Illinois sneaker sellers.


"They're already crossing the borders for many things," said Kim Clarke Maisch, Illinois' director of the National Federation of Independent Business. "They're crossing the borders for gambling, for example. We don't need any other reasons for them to travel elsewhere."


The shoe tax proposal is the latest example of attempts in Springfield to raise money for specifically targeted programs. There's not much appetite for big tax hikes after Democrats passed what was billed as a temporary 67 percent increase in the income tax rate two years ago. Money remains tight, so lawmakers are looking to create small pots of cash for programs they support.


Last year, state Sen. Toi Hutchinson, an Olympia Fields Democrat now running for Congress, sponsored a pair of such tax hikes. Strip clubs now pay a tax with proceeds going to fund rape crisis centers. And drivers pay $2 more on license plate fees, with the money going to improve state parks.


Davis said he's picked up on the "creative ways" used last year. He didn't have a specific correlation between shoes and the youth programs, however.


"Athletic shoes are widespread," Davis said. "If you're trying to find an idea that will capture as many resources as possible, this works. Everyone uses them, and just about everybody buys athletic shoes at some point in their lives."


The shoe tax would provide money throughout Illinois for YouthBuild and potentially other similar programs that faced cutbacks in recent years of tight state budgets, Davis said.


There are 16 YouthBuild programs in Illinois. Most students in the programs did not graduate from high school or struggle with reading and writing. Attempts are made to help them get the equivalent of a high school diploma. They often build low-income housing as a way to learn blue-collar skills.


Such programs provide an "alternative to destructive ways of life" and give young people a chance to see there is "something more out there for them," Davis said.


In south suburban Harvey, the YouthBuild program has done work for Habitat for Humanity and emergency response training for handling hazardous waste. The main goal is to help people pursue more prosperous careers through college or apprenticeships, said Kreshina Ingram, the program's manager.


"We're not just looking for them to move up to part-time or temporary positions — or go into fast-food jobs," Ingram said. "We want them to get careers."


Tatyanna Smith said she dropped out of high school in 2010 and was headed down a misguided path of life on the streets. A cousin recommended the program so Smith could study to get the equivalent of a high school degree. Her priorities, Smith said, changed from there.


Since joining last September, Smith said she sees her life more clearly and has "become more mature." Now she wants a career in the construction trades and expects to start working on a house-building project.


As Davis seeks more money for such programs at the Capitol, he might have to tweak his bill as it goes through the legislative process. As written, the bill defines athletic shoes as used "primarily for sports or other forms of physical activity and includes, without limitation, shoes designed for running, walking, basketball, football, tennis or soccer."


That definition may be problematic because it is so broad, said Mandy Rafool, a tax policy expert with the Denver-based National Conference of State Legislatures.


To get the shoe tax through, Davis also will have to overcome opposition from business groups representing shoe store owners.


Dave Zimmer, who is about to open his third Fleet Feet store in Chicago, isn't averse to helping charitable groups. He partners with charities including the AIDS Foundation of Chicago, Access Living, the American Cancer Society and PAWS Chicago, according to the company's website.


But Zimmer said an increase in shoe costs could prompt customers to buy them online at a time when bricks-and-mortar stores are losing business to the Internet.


"I understand what they're trying to accomplish and the good they want to create," Zimmer said. "But I just don't get the correlation between athletic shoes and the programs this tax would fund."


raguerrero2@tribune.com





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Iran's Ahmadinejad kissed and scolded in Egypt


CAIRO (Reuters) - Mahmoud Ahmadinejad was both kissed and scolded on Tuesday when he began the first visit to Egypt by an Iranian president since Tehran's 1979 Islamic revolution.


The trip was meant to underline a thaw in relations since Egyptians elected an Islamist head of state, President Mohamed Mursi, last June. But it also highlighted deep theological and geopolitical differences.


Mursi, a member of the Sunni Muslim Brotherhood, kissed Ahmadinejad after he landed at Cairo airport and gave him a red carpet reception with military honors. Ahmadinejad beamed as he shook hands with waiting dignitaries.


But the Shi'ite Iranian leader received a stiff rebuke when he met Egypt's leading Sunni Muslim scholar later at Cairo's historic al-Azhar mosque and university.


Sheikh Ahmed al-Tayeb, head of the 1,000-year-old seat of religious learning, urged Iran to refrain from interfering in Gulf Arab states, to recognize Bahrain as a "sisterly Arab nation" and rejected the extension of Shi'ite Muslim influence in Sunni countries, a statement from al-Azhar said.


Visiting Cairo to attend an Islamic summit that begins on Wednesday, Ahmadinejad told a news conference he hoped his trip would be "a new starting point in relations between us".


However, a senior cleric from the Egyptian seminary, Hassan al-Shafai, who appeared alongside him, said the meeting had degenerated into an exchange of theological differences.


"There ensued some misunderstandings on certain issues that could have an effect on the cultural, political and social climate of both countries," Shafai said.


"The issues were such that the grand sheikh saw that the meeting ... did not serve the desired purpose."


The visit would have been unthinkable during the rule of Hosni Mubarak, the military-backed autocrat who preserved Egypt's peace treaty with Israel during his 30 years in power and deepened ties between Cairo and the West.


"The political geography of the region will change if Iran and Egypt take a unified position on the Palestinian question," Ahmadinejad said in an interview with Al Mayadeen, a Beirut-based TV station, on the eve of his trip.


He said he wanted to visit the Gaza Strip, the Palestinian territory which neighbors Egypt to the east and is run by the Islamist movement Hamas. "If they allow it, I would go to Gaza to visit the people," Ahmadinejad said.


Analysts doubt that the historic changes that brought Mursi to power will result in a full restoration of diplomatic ties between states whose relations were broken off after the conclusion of Egypt's peace treaty with Israel in 1979.


OBSTACLES TO FULL TIES


At the airport the two leaders discussed ways of improving relations and resolving the Syrian crisis "without resorting to military intervention", Egyptian state media reported.


Egypt is concerned by Iran's support for Syrian President Bashar al-Assad, who is trying to crush an uprising inspired by the revolt that swept Mubarak from power two years ago. Egypt's overwhelmingly Sunni Muslim population is broadly supportive of the uprising against Assad's Alawite-led administration.


Egyptian Foreign Minister Mohamed Kamel Amr sought to reassure Gulf Arab allies - that are supporting Cairo's battered state finances and are deeply suspicious of Iran - that Egypt would not jeopardize their security.


"The security of the Gulf states is the security of Egypt," he said in remarks reported by the official MENA news agency.


Mursi wants to preserve ties with the United States, the source of $1.3 billion in aid each year to the influential Egyptian military.


"The restoration of full relations with Iran in this period is difficult, despite the warmth in ties ... because of many problems including the Syrian crisis and Cairo's links with the Gulf states, Israel and the United States," said one former Egyptian diplomat.


Iranian Foreign Minister Ali Akbar Salehi said he was optimistic that ties could grow closer.


"We are gradually improving. We have to be a little bit patient. I'm very hopeful about the expansion of the bilateral relationship," he told Reuters. Asked where he saw room for closer ties, he said: "Trade and economics."


Egypt and Iran have taken opposite courses since the late 1970s. Egypt, under Mubarak's predecessor Anwar Sadat, concluded a peace treaty with Israel in 1979 and became a close ally of the United States and Europe. Iran from 1979 turned into a center of opposition to Western influence in the Middle East.


Symbolically, Iran named a street in Tehran after the Islamist who led the 1981 assassination of Sadat.


Egypt gave asylum and a state funeral to Iran's exiled Shah Reza Pahlavi, who was overthrown in the 1979 Iranian revolution. He is buried in a mosque beside Cairo's mediaeval Citadel alongside his ex-brother-in-law, Egypt's last king, Farouk.


(Additional reporting by Ayman Samir, Marwa Awad and Alexander Diadosz; Writing by Paul Taylor and Tom Perry; Editing by Andrew Roche and Robin Pomeroy)



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S&P 500 posts worst day since November; McGraw-Hill shares sink

NEW YORK (Reuters) - Stocks slid on Monday, giving the S&P 500 its worst day since November, as renewed worries about the euro zone crisis caused the market to pull back from recent gains.


Shares of McGraw-Hill shed 13.8 percent to $50.30, their worst daily percentage decline since the October 1987 market crash, after news the U.S. Justice Department plans to sue Standard & Poor's, a unit of McGraw-Hill, over its mortgage bond ratings. It would be the first such federal action against a credit rating agency related to the recent financial crisis.


Chevron and Wal-Mart were among the biggest drags on the Dow after analyst downgrades, and all 10 S&P 500 sectors were lower. The losses follow Friday's market climb that left the S&P 500 at a five-year high and the Dow above 14,000.


"The market is extended and due for a pullback. I think people are looking for an excuse to make sales, and there (is) the concern coming from Europe," said Michael James, senior trader at Wedbush Morgan in Los Angeles.


Spanish and Italian bond yields rose, renewing worries about the euro zone's sovereign debt crisis. Spain's prime minister faced calls to resign over a corruption scandal, while a probe of alleged misconduct involving an Italian bank was expected to widen three weeks before a national election.


Adding to market pressure, data from the U.S. Commerce Department showed overall factory orders for December were below economists' expectations.


The Dow Jones industrial average <.dji> was down 129.71 points, or 0.93 percent, at 13,880.08. The Standard & Poor's 500 Index <.spx> was down 17.46 points, or 1.15 percent, at 1,495.71. The Nasdaq Composite Index <.ixic> was down 47.93 points, or 1.51 percent, at 3,131.17.


With 18.7 billion shares traded, it was the busiest day on record for McGraw-Hill shares. Shares of ratings agency Moody's Corp fell 10.7 percent at $49.45, their worst one-day drop since August 2011.


The benchmark S&P 500 rose on Friday, leaving it roughly 60 points away from its all-time intraday high of 1,576.09, while the Dow's march above 14,000 was the highest for the index since October 2007.


The S&P index remains up about 5 percent for the year, with nearly half of the gains coming after U.S. legislators temporarily sidestepped the "fiscal cliff" of automatic tax increases and spending cuts.


The CBOE Volatility index VIX <.vix>, Wall Street's so-called fear gauge, jumped 13.7 percent.


Chevron dipped 1.1 percent to $115.20 after UBS cut its rating to neutral, while Wal-Mart Stores Inc shed 1.2 percent to $69.63 after JP Morgan lowered its rating on the world's largest retailer and reduced its price target.


Shares of household products company Clorox rose 0.7 percent to $79.72 after quarterly profit beat analysts' estimates as a severe flu season boosted sales of disinfecting wipes.


According to Thomson Reuters data, of the 256 companies in the S&P 500 that have reported earnings through Monday morning, 68.4 percent have reported earnings above analyst expectations, compared with the 62 percent average since 1994 and the 65 percent average over the past four quarters.


S&P 500 fourth-quarter earnings are expected to rise 4.4 percent, according to the data. That estimate is above the 1.9 percent forecast at the start of earnings season, but well below the 9.9 percent forecast on October 1.


In deal news, software maker Oracle Corp agreed to buy network equipment company Acme Packet Inc for $1.7 billion net of cash. Shares of Oracle were down 3 percent at $35.13 while Acme Packet shot up 23.7 percent to $29.59.


Shares of Herbalife Ltd ended up 1.3 percent at $35.54, recovering its losses ahead of the close. The New York Post reported the seller of weight loss products is facing a probe by the Federal Trade Commission.


Volume was roughly 6.3 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.


Decliners outpaced advancers on the NYSE by nearly 4 to 1 and on the Nasdaq also by about 4 to 1.


(Editing by Kenneth Barry and Nick Zieminski)



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Cause of Super Bowl power outage remains unclear


NEW ORLEANS (AP) — Who turned out the lights?


The day after the 34-minute blackout at the Super Bowl, the exact cause — and who's to blame — were unclear, though a couple of potential culprits had been ruled out.


It wasn't Beyonce's electrifying halftime performance, according to Doug Thornton, manager of the state-owned Superdome, since the singer had her own generator. And it apparently wasn't a case of too much demand for power. Meters showed the 76,000-seat stadium was drawing no more electricity than it does during a typical New Orleans Saints game, Thornton said.


The lights-out game Sunday proved an embarrassment for the Big Easy just when it was hoping to show the rest of the world how far it has come since Hurricane Katrina in 2005. But many fans and residents were forgiving, and officials expressed confidence that the episode wouldn't hurt the city's hopes of hosting the championship again.


To New Orleans' great relief, NFL Commissioner Roger Goodell said the city did a "terrific" job hosting its first pro football championship in the post-Katrina era, and added: "I fully expect that we will be back here for Super Bowls."


Fans watching from their living rooms weren't deterred, either. An estimated 108.4 million people saw the Baltimore Ravens beat the San Francisco 49ers 34-31, making it the third most-viewed program in television history. Both the 2010 and 2011 games hit the 111 million mark.


The problem that caused the outage was believed to have happened around the spot where a line that feeds current from the local power company, Entergy New Orleans, connects with the Superdome's electrical system, officials said. But whether the fault lay with the utility or with the Superdome was not clear.


Determining the cause will probably take days, according to Dennis Dawsey, a vice president for distribution and transmission for Entergy. He said the makers of some of the switching gear have been brought in to help figure out what happened.


An attorney for the state board that oversees the Superdome said the blackout did not appear to be related to the replacement in December of electrical equipment connecting the stadium to Entergy. Officials with the utility and the Superdome noted that an NFL game, the Sugar Bowl and another bowl game were played there in recent weeks with no apparent problems.


The blackout came after a nearly flawless week of activity for football fans in New Orleans leading up to the big game.


"I hope that's not what they'll remember about this Super Bowl," French Quarter artist Gloria Wallis said. "I hope that what they'll remember is they had a great time here and that they were welcomed here."


Ravens fan Antonio Prezioso, a Baltimore native who went to the game with his 11-year-old son, said the outage just extended the experience.


"The more time we could spend at the game was a good thing, as long as it ended the way it did," he said, laughing.


The city last hosted the Super Bowl in 2002, and officials were hoping this would serve as the ultimate showcase for the city's recovery. The storm tore holes in the roof of the Superdome and caused water damage to its electrical systems, and more than $330 million was spent repairing and upgrading the stadium.


Sunday's Super Bowl was New Orleans' 10th as host, and officials plan to make a bid for an 11th in 2018.


Mayor Mitch Landrieu told WWL-AM on Monday that the outage won't hurt the city's chances, and he joked that the game got better after the blackout: "People were leaving and the game was getting boring, so we had to do a little something to spice it up."


Jarvis DeBerry, a columnist for nola.com and The Times-Picayune, wrote that the power outage gave the media "an opportunity to laugh at the apparent ineptitude or suggest that the ghosts of Hurricane Katrina were haunting the Superdome."


"That's not the kind of attention the city was looking for, obviously," he wrote, "but it's certainly too soon to say if people will remember the power shortage over San Francisco's furious comeback attempt against Baltimore or if this will harm the city's future opportunities to host the Super Bowl."


Bjorn Hanson, dean of New York University's Center for Hospitality and Sports Management, said the episode shouldn't hurt the city's reputation as a big convention destination. "I think people view it for what it was: an unusual event with a near-record power draw," he said. "It was the equivalent of a circuit breaker flipping."


The American Association of Neurological Surgeons will meet in New Orleans from April 27 to May 1. Patty Anderson, director of meetings for the group, said of the blackout: "I never even gave it a second thought. To me, the city is bigger, stronger and more vibrant than it's ever been."


___


Associated Press writers Beth Harpaz, Brett Martel, Stacey Plaisance and Barry Wilner contributed to this report.


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Too Much TV May Lower Sperm Count






Guys may now have another reason to get off the couch: Watching TV has been linked to lower sperm counts, a new study suggests.


During the study, which involved 189 healthy 18- to 22-year-olds, men who watched the most TV (20 or more hours a week) had sperm counts that were 44 percent lower than men who did not watch television.






The findings held after the researchers took into account factors that could affect sperm count, such as smoking, body mass index (BMI) and calorie intake.


Men who watch a lot of TV may have a more sedentary lifestyle, which in turn may affect sperm count, the researchers said. Indeed, the men in the study who exercised the most — doing 15 or more hours a week of moderate to vigorous physical activity — had sperm counts that were higher than those of guys who exercised less than 5 hours a week.


The findings suggest that having a more physically active lifestyle may improve sperm quality, said study researcher Audrey Gaskins, a doctoral student at Harvard School of Public Health. Previous studies have found that being obese and eating a high-fat die are risk factors for lower sperm counts.


However, the new study only found an association, and cannot prove that a sedentary lifestyle lowers sperm count. The researchers also don’t know if the lower sperm counts seen in the study would have an effect on the men’s fertility.


Given the benefits of a healthy lifestyle, the findings make sense, said Dr. Andrew Kramer, a urologist at the University of Maryland Medical Center, who was not involved in the study. But future studies will be needed to determine if increasing exercise in sedentary men will actually improve their sperm counts, Kramer said.


All the men involved in the study were enrolled at the University of Rochester in N.Y. in 2009 and 2010. They were asked about their levels of physical activity and TV watching during the previous three months. More than half of the men were of normal weight, and 75 percent were nonsmokers.


The study is published today (Feb. 4) in the British Journal of Sports Medicine.


Pass it on:More physical activity and less TV watching may boost sperm counts.


Follow Rachael Rettner on Twitter @RachaelRettner, or MyHealthNewsDaily @MyHealth_MHND. We’re also on Facebook & Google+.


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Richard III still the criminal king



















Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen


Richard III on stage and screen





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STORY HIGHLIGHTS


  • Dan Jones: Richard III's remains found; some see chance to redeem his bad reputation

  • Jones says the bones reveal and confirm his appearance, how he died and his injuries

  • Nothing changes his rep as a usurper of the Crown who likely had nephews killed, Jones says

  • Jones: Richard good or bad? Truth likely somewhere in between




Editor's note: Dan Jones is a historian and newspaper columnist based in London. His new book, "The Plantagenets" (Viking) is published in the US this Spring. Follow him on Twitter.


(CNN) -- Richard III is the king we British just can't seem to make our minds up about.


The monarch who reigned from 1483 to 1485 became, a century later, the blackest villain of Shakespeare's history plays. The three most commonly known facts of his life are that he stole the Crown, murdered his nephews and died wailing for a horse at the Battle of Bosworth in 1485. His death ushered in the Tudor dynasty, so Richard often suffers the dual ignominy of being named the last "medieval" king of England -- in which medieval is not held to be a good thing.


Like any black legend, much of it is slander.


Richard did indeed usurp the Crown and lose at Bosworth. He probably had his nephews killed too -- it is unknowable but overwhelmingly likely. Yet as his many supporters have been busy telling us since it was announced Monday that Richard's lost skeleton was found in a car park in Leicester, he wasn't all bad. In fact, he was for most of his life loyal and conscientious.



Dan Jones

Dan Jones



To fill you in, a news conference held at the University of Leicester Monday confirmed what archaeologists working there have suspected for months: that a skeleton removed from under a parking lot in the city center last fall was indeed the long-lost remains of Richard III.


His official burial place -- under the floor of a church belonging to the monastic order of the Greyfriars -- had been lost during the dissolution of the monasteries that was carried out in the 1530s under Henry VIII. A legend grew up that the bones had been thrown in a river. Today, we know they were not.


What do the bones tell us?


Well, they show that Richard -- identified by mitochondrial DNA tests against a Canadian descendant of his sister, Anne of York -- was about 5-foot-8, suffered curvature of the spine and had delicate limbs. He had been buried roughly and unceremoniously in a shallow grave too small for him, beneath the choir of the church.


He had died from a slicing blow to the back of the head sustained during battle and had suffered many other "humiliation injuries" after his death, including having a knife or dagger plunged into his hind parts. His hands may have been tied at his burial. A TV show aired Monday night in the UK was expected to show a facial reconstruction from the skull.


Opinion: What will the finding of Richard III mean?



In other words, we have quite a lot of either new or confirmed biographical information about Richard.


He was not a hunchback, but he was spindly and warped. He died unhorsed. He was buried where it was said he was buried. He very likely was, as one source had said, carried roughly across a horse's back from the battlefield where he died to Leicester, stripped naked and abused all the way.


All this is known today thanks to a superb piece of historical teamwork.


The interdisciplinary team at Leicester that worked toward Monday's revelations deserves huge plaudits. From the desk-based research that pinpointed the spot to dig, to the digging itself, to the bone analysis, the DNA work and the genealogy that identified Richard's descendants, all of it is worthy of the highest praise. Hat-tips, too, to the Richard III Society, as well as Leicester's City Council, which pulled together to make the project happen and also to publicize the society and city so effectively.


However, should anyone today tell you that Richard's skeleton somehow vindicates his historical reputation, you may tell them they are talking horsefeathers.










Richard III got a rep for a reason. He usurped the Crown from a 12-year old boy, who later died.


This was his great crime, and there is no point denying it. It is true that before this crime, Richard was a conspicuously loyal lieutenant to the boy's father, his own brother, King Edward IV. It is also true that once he was king, Richard made a great effort to promote justice to the poor and needy, stabilize royal finances and contain public disorder.


But this does not mitigate that he stole the Crown, justifying it after the fact with the claim that his nephews were illegitimate. Likewise, it remains indisputably true that his usurpation threw English politics, painstakingly restored to some order in the 12 years before his crime, into a turmoil from which it did not fully recover for another two decades.


So the discovery of Richard's bones is exciting. But it does not tell us anything to justify changing the current historical view of Richard: that the Tudor historians and propagandists, culminating with Shakespeare, may have exaggerated his physical deformities and the horrors of Richard's character, but he remains a criminal king whose actions wrought havoc on his realm.


Unfortunately, we don't all want to hear that. Richard remains the only king with a society devoted to rehabilitating his name, and it is a trait of some "Ricardians" to refuse to acknowledge any criticism of their hero whatever. So despite today's discovery, we Brits are likely to remain split on Richard down the old lines: murdering, crook-backed, dissembling Shakespearean monster versus misunderstood, loyal, enlightened, slandered hero. Which is the truth?


Somewhere in between. That's a classic historian's answer, isn't it? But it's also the truth.


Follow us on Twitter @CNNOpinion.


Join us on Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Dan Jones.






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Alabama hostage standoff ends with gunman dead, boy safe









MIDLAND CITY, Ala. -- A man who killed a school bus driver and then held a 5-year-old boy hostage in an underground bunker in rural Alabama for nearly a week was killed on Monday and the child was plucked to safety without injury, law enforcement officials said.

FBI agents entered the bunker to rescue the child after fearing that he was in “imminent danger,” said Steve Richardson, special agent in charge in Mobile.






Negotiations with the suspect, identified as 65-year-old Jimmy Lee Dykes, had deteriorated during the previous 24 hours, Richardson said during a televised news conference.

“Mr. Dykes was observed holding a gun,” the FBI agent said.

The rescue of the boy came on the seventh day of a standoff that drew national media coverage and gripped a rural corner of southeast Alabama with dread.

The drama began when Dykes, a retired trucker and veteran of the war in Vietnam, seized the kindergarten student last Tuesday after boarding a school bus and killing its driver with four shots from a 9 mm handgun, local sheriff's department officials said.

Dykes fled with the child, identified only as Ethan, to a homemade bunker on the man's property down a dirt road.

The child was being treated on Monday at a local hospital, but was physically unharmed, Richardson said. The boy is due to celebrate his birthday on Wednesday and, by all accounts, was taken by Dykes at random.

It was not immediately clear how Dykes died.

A local law enforcement source said a stun or flash grenade was detonated as part of the operation to free the boy, but further details were not immediately released.

The hostage-taking came amid heightened concerns about gun violence and school safety across the United States after the December shooting deaths of 20 children and six adults at a Connecticut elementary school.

Law enforcement officials had offered few insights about Dykes and their negotiations with him ahead of the rescue just after 3 p.m. local time.

Earlier on Monday, Dale County Sheriff Wally Olson said the gunman had a “very complex” story to tell.

“Based on our discussion with Mr. Dykes, he feels like he has a story that's important to him, although it's very complex. And we try to make a safe environment for all for that,” Olson said, without elaborating.

The sheriff's office previously had thanked Dykes for allowing them to deliver medication, coloring books and toys to the boy, who is said to suffer from Asperger's Syndrome and attention deficit-hyperactivity disorder.

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