Wall Street climbs, boosted by eBay results, rosy data

NEW YORK (Reuters) - Wall Street rose on Thursday, with the S&P 500 hitting a five-year intraday high, as investors were cheered by rosy economic data and better-than-expected results from online marketplace eBay .


In encouraging signs for the labor and housing sectors, data showed the number of Americans filing new claims for unemployment benefits fell to a five-year low last week, while residential construction jumped in December.


"It reminds us that although the situation on the job front hasn't improved significantly, slowly but surely it is getting better," said Andres Garcia-Amaya, global market strategist at J.P. Morgan Funds, in New York.


EBay's shares rose 3 percent to $54.50 a day after it reported holiday quarter results that just beat Wall Street expectations. It gave a 2013 forecast that was within analysts' estimates.


The S&P climbed above an intraday peak set in September to its highest since December 2007.


Gains were capped by weakness in the financial sector, with Bank of America and Citigroup down more than 2 percent following results.


Bank of America's fourth-quarter profit fell as it took more charges to clean up mortgage-related problems. Citigroup posted $2.32 billion of charges for layoffs and lawsuits, while its new chief executive cautioned the bank needed more time to deal with its problems.


Bank of America fell 3.7 percent to $11.36, while Citigroup dropped 2.3 percent to $41.50.


The Dow Jones industrial average <.dji> gained 61.49 points, or 0.46 percent, to 13,572.72. The Standard & Poor's 500 Index <.spx> added 6.36 points, or 0.43 percent, to 1,478.99. The Nasdaq Composite Index <.ixic> rose 18.19 points, or 0.58 percent, to 3,135.73.


Overall, S&P 500 corporate earnings for the fourth quarter are expected to see a 2.3 percent gain, Thomson Reuters data showed. Expectations for the quarter have moderated significantly since October.


With investors anticipating the current earnings season to be lackluster, their focus will be on the corporate earnings outlook for the months ahead, analysts said.


Shares of Boeing extended recent declines after the United States and other countries grounded the company's new 787 Dreamliner after a second incident involving battery failure. That comes in the wake of a series of other recent mishaps that have raised safety-related concerns about the aircraft. Boeing slipped 0.8 percent to $73.77 and is down nearly 2 percent for the week so far.


(Editing by Bernadette Baum)



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WORLD: France Battles Rebels in Mali

January 16, 2013

The Times's Greg Winter talks about the escalating conflict in Mali, where the government along with France is battling Islamist insurgents.

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Joey Fatone Runs a Half Marathon - and a Full Marathon - in One Weekend















01/16/2013 at 10:25 AM EST



For two years, Joey Fatone cheered on his wife, Kelly, as she ran the Goofy Challenge at Walt Disney World: a half marathon followed by a full marathon the following day. But when Kelly fractured her foot two months ago, Fatone decided to run in her place.

"I just said, 'I'll do it for you,'" he tells PEOPLE. "And it became something I really wanted to do for her."

After competing on Dancing with the Stars, Fatone, 35, had decided to get into shape.

"I wasn't training to run a marathon," he says. "I just wanted to start working out. I wanted to build more muscle and upper body strength. I have no definition in my chest! So that's how I started. Then I decided, 'Let's see how far I can run.' And it went from there."

The night before the marathon, Fatone did something that could have derailed the entire thing: at the birthday party for his 3-year-old daughter, Kloey, he jumped on a trampoline for three hours. "I knew I could hurt myself," he says. "But it was her birthday. What was I going to do? I woke up the next day feeling really good and ready to run."

On Saturday, Kelly Fatone packed Joey a lunch – along with Advil and blister ointment. During the 13.1 mile trek, Fatone would run for a minute, followed by a minute of brisk walking. He finished the course in three hours, 10 minutes. "It really wasn't that bad," he says.

The next day, he tackled the 26.2-mile marathon. "I never thought, 'I'm not going to do this,' but I did think, 'What am I doing?'" he says.

Around mile 18, his left knee started to throb. "I knew if I stopped, I'd be screwed," he says. "So I just kept going."

Finishing the marathon in six hours, 19 minutes, Fatone was triumphant. "Your body can do so much if you mentally prepare," he says. "I really do feel like I can do anything now. It's a great feeling."

On another hot topic, pal Justin Timberlake's new song "Suit & Tie," Fatone has nothing but praise for his former boy bandmate. "I like it," he says. "It's a different sound for him, but Justin's music grows on you. After you hear it a few times, you love it!"

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ER visits tied to energy drinks double since 2007


SAN FRANCISCO (AP) — A new government survey suggests the number of people seeking emergency treatment after consuming energy drinks has doubled nationwide during the past four years, the same period in which the supercharged drink industry has surged in popularity in convenience stores, bars and on college campuses.


From 2007 to 2011, the government estimates the number of emergency room visits involving the neon-labeled beverages shot up from about 10,000 to more than 20,000. Most of those cases involved teens or young adults, according to a survey of the nation's hospitals released late last week by the Substance Abuse and Mental Health Services Administration.


The report doesn't specify which symptoms brought people to the emergency room but calls energy drink consumption a "rising public health problem" that can cause insomnia, nervousness, headache, fast heartbeat and seizures that are severe enough to require emergency care.


Several emergency physicians said they had seen a clear uptick in the number of patients suffering from irregular heartbeats, anxiety and heart attacks who said they had recently downed an energy drink.


More than half of the patients considered in the survey who wound up in the emergency room told doctors they had downed only energy drinks. In 2011, about 42 percent of the cases involved energy drinks in combination with alcohol or drugs, such as the stimulants Adderall or Ritalin.


"A lot of people don't realize the strength of these things. I had someone come in recently who had drunk three energy drinks in an hour, which is the equivalent of 15 cups of coffee," said Howard Mell, an emergency physician in the suburbs of Cleveland, who serves as a spokesman for the American College of Emergency Physicians. "Essentially he gave himself a stress test and thankfully he passed. But if he had a weak heart or suffered from coronary disease and didn't know it, this could have precipitated very bad things."


The findings came as concerns over energy drinks have intensified following reports last fall of 18 deaths possibly tied to the drinks — including a 14-year-old Maryland girl who died after drinking two large cans of Monster Energy drinks. Monster does not believe its products were responsible for the death.


Two senators are calling for the Food and Drug Administration to investigate safety concerns about energy drinks and their ingredients.


The energy drink industry says its drinks are safe and there is no proof linking its products to the adverse reactions.


Late last year, the FDA asked the U.S. Health and Human Services to update the figures its substance abuse research arm compiles about emergency room visits tied to energy drinks.


The Substance Abuse and Mental Health Services Administration's survey was based on responses it receives from about 230 hospitals each year, a representative sample of about 5 percent of emergency departments nationwide. The agency then uses those responses to estimate the number of energy drink-related emergency department visits nationwide.


The more than 20,000 cases estimated for 2011 represent a small portion of the annual 136 million emergency room visits tracked by Centers for Disease Control and Prevention.


The FDA said it was considering the findings and pressing for more details as it undertakes a broad review of the safety of energy drinks and related ingredients this spring.


"We will examine this additional information ... as a part of our ongoing investigation into potential safety issues surrounding the use of energy-drink products," FDA spokeswoman Shelly Burgess said in a statement.


Beverage manufacturers fired back at the survey, saying the statistics were misleading and taken out of context.


"This report does not share information about the overall health of those who may have consumed energy drinks, or what symptoms brought them to the ER in the first place," the American Beverage Association said in a statement. "There is no basis by which to understand the overall caffeine intake of any of these individuals — from all sources."


Energy drinks remain a small part of the carbonated soft drinks market, representing only 3.3 percent of sales volume, according to the industry tracker Beverage Digest. Even as soda consumption has flagged in recent years, energy drinks sales are growing rapidly.


In 2011, sales volume for energy drinks rose by almost 17 percent, with the top three companies — Monster, Red Bull and Rockstar — each logging double-digit gains, Beverage Digest found. The drinks are often marketed at sporting events that are popular among younger people such as surfing and skateboarding.


From 2007 to 2011, the most recent year for which data was available, people from 18 to 25 were the most common age group seeking emergency treatment for energy drink-related reactions, the report found.


"We were really concerned to find that in four years the number of emergency department visits almost doubled, and these drinks are largely marketed to younger people," said Al Woodward, a senior statistical analyst with the Substance Abuse and Mental Health Services Administration who worked on the report.


Emergency physician Steve Sun said he had seen an increase in such cases at the Catholic hospital where he works on the edge of San Francisco's Golden Gate Park.


"I saw one young man who had mixed energy drinks with alcohol and we had to admit him to the hospital because he was so dehydrated he had renal failure," Sun said. "Because he was young he did well in the hospital, but if another patient had had underlying coronary artery disease, it could have led to a heart attack."


___


Follow Garance Burke on Twitter at http://twitter.com/garanceburke


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Wall Street flat as Apple gains, Boeing weighs

NEW YORK (Reuters) - U.S. stocks were little changed on Wednesday as concerns about global economic growth and a drop in Boeing shares offset strong bank results and gains in technology stocks.


Goldman Sachs shares hit their highest level since June 2011 as earnings nearly tripled on increased revenue from dealmaking and lower compensation expenses, while JPMorgan Chase said fourth-quarter net income jumped 53 percent and earnings for 2012 set a record.


JPMorgan shares edged up 0.2 percent at $46.43 and Goldman was up 2.5 percent to $139.01. The KBW bank index <.bkx> gained 0.3 percent.


But with only 37 companies in the S&P 500 having reported earnings so far this season, investors are exercising caution until signs of growth can emerge.


A slow economic recovery in developed nations is holding back the global economy, the World Bank said on Tuesday, as it sharply scaled back its forecast for world growth in 2013 to 2.4 percent from an earlier forecast of 3.0 percent.


"Domestically, we are pretty well positioned," said Marc Helman, Vice President, Institutional Services at HFP Capital Markets in New York.


"But globally it's more of a mixed bag and that is where we have some of our concerns, so you are going to continue to see people wait on the sidelines until they get a little more clarity through the earnings season."


Shares of Dow component Boeing fell 3.1 percent to $74.59, the biggest drag on the Dow, on safety concerns for its new Dreamliner passenger jets. Japan's two leading airlines grounded their fleets of 787s after an emergency landing, adding to safety concerns triggered by a series of recent incidents.


The Dow Jones industrial average <.dji> shed 19.70 points, or 0.15 percent, to 13,515.19. The Standard & Poor's 500 Index <.spx> edged up 0.32 points, or 0.02 percent, to 1,472.66. The Nasdaq Composite Index <.ixic> gained 7.26 points, or 0.23 percent, to 3,118.04.


The Nasdaq moved higher on gains in Apple shares, which were up 3.2 percent at $501.66 after losses in three straight sessions. Morgan Stanley stamped the tech giant as a "best idea," citing overblown concerns about iPhone shipments.


Talks to take Dell Inc private were at an advanced stage, with at least four major banks lined up to provide financing, two sources with knowledge of the matter told Reuters. Shares fell 4 percent to $12.65 after jumping more than 21 percent over the past two sessions.


U.S. consumer prices were flat in December, pointing to muted inflation pressures that should give the Federal Reserve room to prop up the economy by staying on its ultra-easy monetary policy path.


(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)



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India Ink: Image of the Day: Jan. 15

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Tata Consultancy says demand in U.S. strong across segments






MUMBAI/BANGALORE (Reuters) – India’s top software services provider Tata Consultancy Services Ltd (TCS) said demand in the key U.S. market is strong across its business segments, with regional banks stepping up spending on technology.


The Mumbai-based company said on Monday that profit jumped 23 percent in the quarter ended December, beating analysts‘ expectations. TCS also gave an upbeat growth outlook, sending its shares up the most in more than eight months and prompting analyst upgrades on the stock.






Economic uncertainty in the United States had fuelled investor worry that clients may keep their IT budgets tight and postpone decision-making on technology spending.


“The U.S. is still a growth market,” Chief Financial Officer S Mahalingam told Reuters in an interview at his Mumbai office on Tuesday. “If it sneezes then we have got a big problem. (But) the demand is very good across all segments.”


The United States accounts for about half of TCS’ revenue, compared with more than 60 percent overall for India’s $ 100 billion outsourcing industry.


Banks, insurers and other financial services clients usually account for more than a third of the revenue at companies such as TCS’ rival Infosys Ltd , where better-than-expected results on Friday and an increased revenue outlook powered a 20 percent rise in its shares over two sessions.


“(The) U.S. economy has regional banks as well, and they are starting to spend. So there is growth,” Mahalingam said.


While Monday’s results prompted analysts from HSBC and CLSA to increase their ratings on TCS stock, some analysts said volume growth was not especially impressive.


Volumes, or billable hours, rose 1.25 percent on a sequential basis, while revenue in dollar terms increased 3.3 percent over the September quarter.


“The key disappointment was soft volume growth of 1.25 percent quarter-on-quarter. However, we remain assured by management’s optimistic outlook on FY14 growth,” Nomura analysts wrote in a note to clients.


(Editing by Tony Munroe and Ryan Woo)


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Mindy McCready's Boyfriend David Wilson Died of a Self-Inflicted Gunshot Wound















01/15/2013 at 11:30 AM EST



Last year, things were looking up for Mindy McCready after a judge awarded her custody of her 6-year-old son, Zander.

"It was good news," her rep, Kat Atwood, tells PEOPLE. "The custody battle was over. Zander was comfortable at home with Mindy. She had a new baby. Things were going well."

But everything fell apart for McCready on Sunday night, when her partner, David Wilson, shot himself.

"It was a self-inflicted gunshot wound," Atwood says. "Now they're working on funeral arrangements and figuring out where to go from here."

For the first 24 hours after the shooting, McCready, 37, was alone with her children. (She and Wilson had a 9-month-old son, Zayne.) "Her family drove up from Florida," says Atwood. "I'm not exactly sure when they got there, but her personal friends arrived late last night."

This marks the latest setback in the troubled life of McCready, who has struggled with custody battles, addiction and her own suicide attempts.

Those close to her hope that the love of family and friends will help her through this difficult ordeal. "She is surrounded by people who love her and are there for her," says Atwood. "It's a very sad time, but she has support in place."

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Experts: Proposed NY gun law might hinder therapy


NEW YORK (AP) — Mental health experts say a proposed New York state gun control law might interfere with treatment of potentially dangerous people and even discourage them from seeking help.


One provision would require therapists and doctors to tell government authorities if they believe a patient is likely to harm himself or others. That could lead to revoking a patient's gun permit and seizing the gun.


Dr. Paul Appelbaum, director of law, ethics and psychiatry at Columbia University, said that provision might discourage people from revealing thoughts of harm to a therapist, or even from seeking treatment at all.


Dr. Mark Olfson, a psychiatry professor at Columbia, said if the law is crudely applied, it could erode the trust patients have in their doctors which is needed for effective care.


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Wall Street knocked lower by debt limit worries, Apple

NEW YORK (Reuters) - U.S. stocks fell on Tuesday on worries over the debate brewing in Washington over raising the U.S. borrowing limit, while Apple's stock extended its fall on concerns of weaker demand for its products.


Economic data offset some of the negative tone after retail sales rose more than expected in December. But manufacturing activity in New York state contracted for the sixth month in a row in January.


On Monday, President Barack Obama rejected any negotiations with Republicans over raising the U.S. debt ceiling. The United States could default on its debt if Congress does not increase the borrowing limit.


Resolving the debt ceiling debate is more a question of how than if. Investors don't expect a U.S. default, but they are also wary of another eleventh-hour agreement like the one in August 2011.


"The concern is just the uncertainty and the negotiating going down to the last minute," said John Fox, co-manager of the FAM Value Fund, in Cobleskill, New York.


Apple fell for the third day in a row, weighing on the Nasdaq after reports on Monday of cuts to orders for iPhone parts. Apple was down more than 2 percent at $491.96. The stock fell below $500 for the first time in almost a year on Monday.


The Dow Jones industrial average <.dji> slipped 29.55 points, or 0.22 percent, to 13,477.77. The Standard & Poor's 500 Index <.spx> fell 4.35 points, or 0.30 percent, to 1,466.33. The Nasdaq Composite Index <.ixic> gave up 18.82 points, or 0.60 percent, at 3,098.68.


Although Tuesday's economic data was mostly positive, reaction in the market was likely to be limited since investors' attention centered on the negotiations over the debt ceiling and spending cuts, said Hugh Johnson, chief investment officer of Hugh Johnson Advisors LLC in Albany, NY.


"'Fiscal Cliff Two' is now the principal focus of investors," he said.


An expected lackluster earnings season also kept investors from taking aggressive bets. Analyst estimates for the quarter have fallen sharply since October. S&P 500 earnings growth is now seen up just 1.9 percent from a year ago, Thomson Reuters data showed.


Homebuilder Lennar reported a sharp rise in quarterly profit, but the stock fell 2.2 percent to $40.11 on worries that growth in orders was slowing.


Shares of Dell rose 3.1 percent to $12.67 the day after sources said the company is in talks with private equity firms on a potential buyout.


Facebook added 0.6 percent to $31.11 ahead of a major news event at its headquarters. The secretive nature of the event has triggered a guessing game about what the company could unveil.


(Editing by Kenneth Barry)



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