America’s national parks weigh solitude against cellular access

SALMON, Idaho (Reuters) – As cell phones, iPods and laptops creep steadily into every corner of modern life, America’s national parks have stayed largely off the digital grid, among the last remaining outposts of ringtone-free human solitude.

For better or worse, that may soon change.

Under pressure from telecommunications companies and a growing number of park visitors who feel adrift without mobile-phone reception, the airwaves in such grand getaway destinations as Yellowstone National Park may soon be abuzz with new wireless signals.

That prospect has given pause to a more traditional cohort of park visitors who cherish the unplugged tranquility of the great outdoors, fearing an intrusion of mobile phones – and the sound of idle chatter – will diminish their experience.

Some have mixed emotions. Stephanie Smith, a 50-something Montana native who visits Yellowstone as many as six times a year, said she prefers the cry of an eagle to ring tones.

But she also worries that future generations may lose their appreciation for the value of nature and the need to preserve America’s outdoor heritage if a lack of technology discourages them from visiting.

“You have to get there to appreciate it,” Smith said. “It’s a new world – and technology is a part of it.”

Balancing the two aesthetics has emerged as the latest challenge facing the National Park Service as managers in at least two premier parks, Yellowstone and Glacier national parks, consider recent requests to install new telecommunications towers or upgrade existing ones.

There is no system-wide rule governing cellular facilities in the 300 national parks, national monuments and other units the agency administers nationwide. Wireless infrastructure decisions are left up to the managers of individual park units.

The agency’s mission statement requires it to protect park resources and the visitor experience, but each individual experience is unique, said Lee Dickinson, a special-uses program manager for the Park Service.

“I’ve had two visitors calling me literally within hours of each other who wanted exactly the opposite experience: One saying he didn’t vacation anywhere without electronic access and the other complaining he was disturbed by another park visitor ordering pizza on his cell phone,” Dickinson said.

CAN YOU HEAR ME NOW?

Wireless supporters say more is at stake than the convenience of casual phone conversations. Cellular providers say new wireless infrastructure will boost public safety by improving communications among park rangers and emergency responders.

They argue that the ability to download smartphone applications that can deliver instant information on plants and animals will also enrich park visitors’ experiences.

“Our customers are telling us that having access to technology will enhance their visit to wild areas,” said Bob Kelley, spokesman for Verizon Wireless, which is seeking to install a new 100-foot cell tower at Yellowstone.

Rural communities that border the national parks also stand to benefit from enlarged cellular coverage areas.

On the other side of the debate, outdoor enthusiasts worry that bastions of quiet reflection could be transformed into noisy hubs where visitors yak on cell phones and fidget with electronic tablets, detracting from the ambience of such natural wonders as Yellowstone’s celebrated geyser Old Faithful.

Expanding cellular reception may even compromise safety by giving some tourists a false sense of security in the back country, where extremes in weather and terrain test even the most skilled outdoorsman, according to the National Parks Conservation Association.

Tim Stevens, the association’s Northern Rockies director, said distractions like meandering moose already challenge the attention of motorists clogging park roads at the height of the summer tourist season.

“People brake in the middle of the road to watch animals. The added distraction of a wireless signal – allowing a driver to text Aunt Madge to say how great the trip is – could have disastrous consequences,” he said.

Yellowstone already offers some limited mobile-phone service, afforded by four cellular towers previously erected in developed sections of the park.

But vast swathes of America’s oldest national park, which spans nearly 3,500 square miles across the states of Wyoming, Montana and Idaho, still lack wireless reception in an age dominated by Wi-Fi and iPad users who expect access even in the most remote locations.

Park officials see definite signs that a portion of the roughly 3 million annual visitors to Yellowstone, which crafted a wireless plan in 2008, are finding the lack of cell phone coverage disconcerting.

Park spokesman Al Nash said he routinely fields calls from anxious relatives of Yellowstone visitors unable to contact their loved ones.

“They say, ‘My gosh, my niece, daughter or parents went to Yellowstone, and we haven’t heard from them for three days,’” he said.

(Reporting and writing by Laura Zuckerman; Editing by Steve Gorman and David Gregorio)

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Lilly drug chosen for Alzheimer's prevention study

Researchers have chosen an experimental drug by Eli Lilly & Co. for a large federally funded study testing whether it's possible to prevent Alzheimer's disease in older people at high risk of developing it.

The drug, called solanezumab (sol-ah-NAYZ-uh-mab), is designed to bind to and help clear the sticky deposits that clog patients' brains.

Earlier studies found it did not help people with moderate to severe Alzheimer's but it showed some promise against milder disease. Researchers think it might work better if given before symptoms start.

"The hope is we can catch people before they decline," which can come 10 years or more after plaques first show up in the brain, said Dr. Reisa Sperling, director of the Alzheimer's center at Brigham and Women's Hospital in Boston.

She will help lead the new study, which will involve 1,000 people ages 70 to 85 whose brain scans show plaque buildup but who do not yet have any symptoms of dementia. They will get monthly infusions of solanezumab or a dummy drug for three years. The main goal will be slowing the rate of cognitive decline. The study will be done at 50 sites in the U.S. and possibly more in Canada, Australia and Europe, Sperling said.

In October, researchers said combined results from two studies of solanezumab suggested it might modestly slow mental decline, especially in patients with mild disease. Taken separately, the studies missed their main goals of significantly slowing the mind-robbing disease or improving activities of daily living.

Those results were not considered good enough to win the drug approval. So in December, Lilly said it would start another large study of it this year to try to confirm the hopeful results seen patients with mild disease. That is separate from the federal study Sperling will head.

About 35 million people worldwide have dementia, and Alzheimer's is the most common type. In the U.S., about 5 million have Alzheimer's. Current medicines such as Aricept and Namenda just temporarily ease symptoms. There is no known cure.

___

Online:

Alzheimer's info: http://www.alzheimers.gov

Alzheimer's Association: http://www.alz.org

___

Follow Marilynn Marchione's coverage at http://twitter.com/MMarchioneAP

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Wall Street Week Ahead: Earnings, money flows to push stocks higher

NEW YORK (Reuters) - With earnings momentum on the rise, the S&P 500 seems to have few hurdles ahead as it continues to power higher, its all-time high a not-so-distant goal.

The U.S. equity benchmark closed the week at a fresh five-year high on strong housing and labor market data and a string of earnings that beat lowered expectations.

Sector indexes in transportation <.djt>, banks <.bkx> and housing <.hgx> this week hit historic or multiyear highs as well.

Michael Yoshikami, chief executive at Destination Wealth Management in Walnut Creek, California, said the key earnings to watch for next week will come from cyclical companies. United Technologies reports on Wednesday while Honeywell is due to report Friday.

"Those kind of numbers will tell you the trajectory the economy is taking," Yoshikami said.

Major technology companies also report next week, but the bar for the sector has been lowered even further.

Chipmakers like Advanced Micro Devices , which is due Tuesday, are expected to underperform as PC sales shrink. AMD shares fell more than 10 percent Friday after disappointing results from its larger competitor, Intel . Still, a chipmaker sector index <.sox> posted its highest weekly close since last April.

Following a recent underperformance, an upside surprise from Apple on Wednesday could trigger a return to the stock from many investors who had abandoned ship.

Other major companies reporting next week include Google , IBM , Johnson & Johnson and DuPont on Tuesday, Microsoft and 3M on Thursday and Procter & Gamble on Friday.

CASH POURING IN, HOUSING DATA COULD HELP

Perhaps the strongest support for equities will come from the flow of cash from fixed income funds to stocks.

The recent piling into stock funds -- $11.3 billion in the past two weeks, the most since 2000 -- indicates a riskier approach to investing from retail investors looking for yield.

"From a yield perspective, a lot of stocks still yield a great deal of money and so it is very easy to see why money is pouring into the stock market," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.

"You are just not going to see people put a lot of money to work in a 10-year Treasury that yields 1.8 percent."

Housing stocks <.hgx>, already at a 5-1/2 year high, could get a further bump next week as investors eye data expected to support the market's perception that housing is the sluggish U.S. economy's bright spot.

Home resales are expected to have risen 0.6 percent in December, data is expected to show on Tuesday. Pending home sales contracts, which lead actual sales by a month or two, hit a 2-1/2 year high in November.

The new home sales report on Friday is expected to show a 2.1 percent increase.

The federal debt ceiling negotiations, a nagging worry for investors, seemed to be stuck on the back burner after House Republicans signaled they might support a short-term extension.

Equity markets, which tumbled in 2011 after the last round of talks pushed the United States close to a default, seem not to care much this time around.

The CBOE volatility index <.vix>, a gauge of market anxiety, closed Friday at its lowest since April 2007.

"I think the market is getting somewhat desensitized from political drama given, this seems to be happening over and over," said Destination Wealth Management's Yoshikami.

"It's something to keep in mind, but I don't think it's what you want to base your investing decisions on."

(Reporting by Rodrigo Campos, additional reporting by Chuck Mikolajczak and Caroline Valetkevitch; Editing by Kenneth Barry)

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Priest Is Planning to Defy Vatican’s Orders to Stay Quiet

Jekaterina Saveljeva for The New York Times

The Rev. Tony Flannery, an Irish priest, was suspended by the Vatican last year. “I refuse to be terrified into submission,” he said.

DUBLIN — A well-known Irish Catholic priest plans to defy Vatican authorities on Sunday by breaking his silence about what he says is a campaign against him by the church over his advocacy of more open discussion on church teachings.

The Rev. Tony Flannery, 66, who was suspended by the Vatican last year, said he was told by the Vatican that he would be allowed to return to ministry only if he agreed to write, sign and publish a statement agreeing, among other things, that women should never be ordained as priests and that he would adhere to church orthodoxy on matters like contraception and homosexuality.

“How can I put my name to such a document when it goes against everything I believe in,” he said in an interview on Wednesday. “If I signed this, it would be a betrayal not only of myself but of my fellow priests and lay Catholics who want change. I refuse to be terrified into submission.”

Father Flannery, a regular contributor to religious publications, said he planned to make his case public at a news conference here on Sunday.

The Vatican’s doctrinal office, the Congregation for the Doctrine of the Faith, wrote to Father Flannery’s religious superior, the Rev. Michael Brehl, last year instructing him to remove Father Flannery from his ministry in County Galway, to ensure he did not publish any more articles in religious or other publications, and to tell him not to give interviews to the news media.

In the letter, the Vatican objected in particular to an article published in 2010 in Reality, an Irish religious magazine. In the article, Father Flannery, a Redemptorist priest, wrote that he no longer believed that “the priesthood as we currently have it in the church originated with Jesus” or that he designated “a special group of his followers as priests.”

Instead, he wrote, “It is more likely that some time after Jesus, a select and privileged group within the community who had abrogated power and authority to themselves, interpreted the occasion of the Last Supper in a manner that suited their own agenda.”

Father Flannery said the Vatican wanted him specifically to recant the statement, and affirm that Christ instituted the church with a permanent hierarchical structure and that bishops are divinely established successors to the apostles.

He believes the church’s treatment of him, which he described as a “Spanish Inquisition-style campaign,” is symptomatic of a definite conservative shift under Pope Benedict XVI.

“I have been writing thought-provoking articles and books for decades without hindrance,” he said. “This campaign is being orchestrated by a secretive body that refuses to meet me. Surely I should at least be allowed to explain my views to my accusers.”

His superior was also told to order Father Flannery to withdraw from his leadership role in the Association of Catholic Priests, a group formed in 2009 to articulate the views of rank-and-file members of the clergy.

In reply to an association statement expressing solidarity with Father Flannery, the Congregation for the Doctrine of the Faith denied it was acting in a secretive manner, pointed out that Father Flannery’s views could be construed as “heresy” under church law, and threatened “canonical penalties,” including excommunication, if he did not change his views.

This month, the Congregation for the Doctrine of the Faith wrote to an American priest, Roy Bourgeois, notifying him of his laicization, following his excommunication in 2008 over his support for the ordination of women.

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Exclusive: Japan’s Sharp cuts iPad screen output

TOKYO/SEOUL (Reuters) – Sharp Corp has nearly halted production of 9.7-inch screens for Apple Inc’s iPad, two sources said, possibly as demand shifts to its smaller iPad mini.

Sharp’s iPad screen production line at its Kameyama plant in central Japan has fallen to the minimal level to keep the line running this month after a gradual slowdown began at the end of 2012 as Apple manages its inventory, the industry sources with knowledge of Sharp’s production plans told Reuters.

Sharp has stopped shipping iPad panels, the people with knowledge of the near total production shutdown said. The exact level of remaining screen output at Sharp was not immediately clear but it was extremely limited, they said.

Company spokeswoman Miyuki Nakayama said: “We don’t disclose production levels.”

Apple officials, contacted late in the evening after normal business hours in California, did not have an immediate comment.

The sources didn’t say exactly why production had nearly halted. Among the possibilities are a seasonal drop in demand, a switch to another supplier, a shift in the balance of sales to the mini iPad, or an update in the design of the product.

Macquarie Research has estimated that iPad shipments will tumble nearly 40 percent in the current quarter to about 8 million from about 13 million in the fourth quarter, although Apple’s total tablet shipments will show a much smaller decrease due to strong iPad mini sales.

APPLE SHARES

Any indication that iPad sales are struggling could add to concern that the appeal of Apple products is waning after earlier media reports said it is slashing orders for iPhone 5 screens and other components from its Asian suppliers.

Those reports helped knock Apple’s shares temporarily below $ 500 this week, the first time its stock had been below the threshold mark in almost one year.

Apple, the reports said, has asked state-managed Japan Display, Sharp and LG Display to halve supplies of iPhone panels from an initial plan for about 65 million screens in January-March. Apple is losing ground to Samsung, as well as emerging rivals including China’s Huawei Technologies Co Ltd and ZTE Corp.

NO BIG CHANGE AT OTHER MAKERS

In addition to Sharp, Apple also buys iPad screens from LG Display Co Ltd, its biggest supplier, and Samsung Display, a flat-panel unit of Samsung Electronics.

Both LG Display and Samsung Display declined to comment.

A source at Samsung Display, however, said there had not been any significant change in its panel business with Apple, which has been steadily reducing panel purchases from the South Korean firm.

A person who is familiar with the situation at LG Display said iPad screen production in the current quarter had fallen from the previous quarter ending in December, mainly due to weak seasonal demand that is typical after the busy year-end holiday sales period.

Sterne Agee analyst Shaw Wu said some of the product cutbacks at Sharp are probably seasonal.

“The March quarter is almost always weaker than the December quarter,” he said, adding that Apple also consolidates suppliers of certain components during quarters with weaker demand. “The Korean manufacturers are more efficient and typically have lower costs.”

Apple’s iPad sales may have also suffered amid a weak Christmas shopping period that hurt other consumer gadget makers as well.

CROWD OF RIVAL PRODUCTS

Apple also faces stiffening competition in tablets from a growing crowd of rival products from makers including Samsung with its Galaxy and Microsoft Corp’s Surface. A consumer shift to smaller 7-inch screen devices, which Apple responded to late last year by launching its iPad mini for $ 329, are adding pressure.

BNP Paribas expects the iPad mini will eat into sales of the full-sized iPad, with the mini rise to 60 percent of total iPad shipments in the January-March quarter.

Looking to cut into Apple’s market share in the smaller segment are Amazon.com Inc with its Kindle and Google Inc with its Nexus 7.

CEO Tim Cook, who is credited with building Apple’s Asian supply chain, has overseen several gadget launches, including the iPhone 5, the latest iPad models and the iPad mini during his first year, is under pressure to deliver the kind of product innovations that wowed consumers during Steve Jobs’ tenure to keep his company’s profit growth stellar.

Sharp, which also supplies screens for the iPhone, has been working with its main banks on a restructuring plan after posting a $ 5.6 billion loss for the past fiscal year. To secure emergency financing from lenders including Mizuho Financial Group and Mitsubishi Financial Group it had mortgaged its domestic factories and offices including the one building screens for Apple.

In December, Qualcomm Inc agreed to invest as much as $ 120 million in Sharp and the two companies said they would work to develop new power-saving screens.

(Additional reporting by Poornima Gupta in San Francisco; Writing by Tim Kelly; Editing by Ken Wills and Richard Chang)

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Marla Sokoloff Blogs: Adventures in Baby Traveling

Shady ladies in Hawaii – Courtesy Marla Sokoloff

Our celebrity blogger Marla Sokoloff is a new mama!

Since audiences first got to know her at age 12 as Gia on Full House, Sokoloff has had many memorable TV roles — Jody on Party of Five, Lucy on The Practice, Claire on Desperate Housewives – as well as turns on the big screen in Whatever It Takes, Dude, Where’s My Car? and Sugar & Spice.

Sokoloff, 32, also sings and plays guitar and released an album, Grateful, in 2005.

She wed her husband, music composer Alec Puro, in November 2009 and the couple — plus pup Coco Puro — make their home in Los Angeles.

You can find Marla, now mom to 11-month-old daughter Elliotte Anne, on Twitter.

Happy 2013! I don’t know about you, but I’m completely amazed at how fast 2012 flew by! I must admit, on New Year’s Day I found myself a little weepy to say goodbye to the year that my little Elliotte came into this world. I realized that as long as I’m on this earth I will always have a soft spot for the year 2012, as it was a complete life and game-changer for me. (Clearly it’s also the year that turned me into a total sap!)

As far as resolutions go, I have a few. They include the usual suspects (exercise more, get more sleep, drink more than four sips of water per day!) but my main focus is going to be on my beloved iPhone and our very dysfunctional relationship.

I really want to work on being in the present and putting that thing down so I can suck up every delicious moment with my family. The social media and pinboards will just have to wait until after my daughter goes to bed. Baby steps!

Last week we hit a huge milestone … Elliotte took her first steps and is now walking (albeit a bit drunk-like) almost on her own! The moment was truly unbelievable and one that left me in tears (shocking … I know) as I was simply overwhelmed with joy. I was just so proud of her.

This is where my resolution isn’t a good thing because — had I not had my trusty iPhone glued to my body — I might have missed the moment. Her grandparents would have killed me! I’m just saying…

Happy New Year! – Courtesy Marla Sokoloff

We spent our Christmas vacation in paradise on the Big Island of Hawaii, but I’m here to tell you that getting there was nothing short of a nightmare. I’m not going to lie or candy-coat this blog at all because this experience was one I never want to relive.

All of my friends warned me about baby airplane travel … basically it could go either way. Kids are wild cards and you never really know what you’re going to get. So in preparation for my little wild card, I boarded our flight armed with earplugs and chocolates for the innocent passengers that could potentially be caught in the line of fire, so to speak. All the while knowing that I will never need to bring out said earplugs … I mean, my child is perfect after all!

This wasn’t Elliotte’s first flight — over the summer we traveled to San Francisco and my little angel slept for the hour flight each way, so I was certain we had this Hawaiian excursion in the bag.

I came equipped with two giant diaper bags. One was filled with diaper bag essentials (diapers, wipes, pacifiers, bottles, change of clothes for both of us) and the other ridiculously large bag was filled with toys and snacks. So many toys and snacks!! If this plane went down, Elliotte could feed the whole cabin with her copious supply of puffs and Cheerios. Basically the plan was, if this kid wasn’t sleeping, I was going to keep her busy and well-fed!

My special edition diaper bag also contained an emergency item. An SOS of sorts. An article that is generally considered a baby no-no in my house, but one that was only to be revealed if absolutely 100 percent necessary. Friends, I’m talking about the iPad. I loaded my secret weapon up with episodes of Sesame Street and adorable farm animal applications that looked like they would keep Elliotte entertained for at least a temper tantrum or two.

Very much like the aforementioned earplugs, I felt pretty confident that our no-no item wouldn’t be making an appearance.

Before takeoff… – Courtesy Marla Sokoloff

As our flight took off, I could see that Elliotte was not the happy camper I know and love. Her face turned beet-red within seconds and she was thrashing in her carseat as if it was a torture device. The tears were flowing fast and her scream was one that could not be silenced.

I looked at my husband, whose eyes said, “Bring out the iPad!!” but I knew it was way too early in our journey to pull such tricks out of sleeves.

As Alec handed out the chocolate and earplugs to our unlucky neighbors, I brought out some of Elliotte’s favorite toys. Every toy that was presented was met with a louder scream. I moved on to my trusted stash of snacks — surely a handful of puffs would soothe this outburst. Fail. I sang. I danced. I peek-a-booed. Nothing.

How can this be? The seat belt sign hasn’t even been turned off yet and I have pretty much emptied out the contents of my special-edition diaper bag!

Once the captain decided to put me out of my misery and turned the seat belt sign off, I ripped Elliotte out of her carseat (the one I brought thinking she would sleep in) and decided a nice walk down the aisle would do us both some good.

That mission was quickly aborted as the scream-fest continued to unaffected rows that were surely enjoying their cocktails and weekly gossip magazines.

My beach baby in Hawaii – Courtesy Marla Sokoloff

I handed her off to my husband and I took a much-needed break, as well as the first deep breath I had taken since leaving Los Angeles International Airport. We were now three-and-a-half hours into our six-hour flight and Elliotte showed no signs of slowing down. It was in this moment that I turned to my family and saw the chaos.

My seat was littered with toys and Cheerios and my poor child looked like a complete mess. Her face was tear-stained and her clothes were covered in squeezable applesauce. (Another failed mission.)

I knew it was time to bring out the big guns. Elmo needed to step in and he better be bringing his A-game.

I placed Elliotte on my lap and out came the iPad. Images of all of my favorite characters appeared on the screen and I instantly felt comforted by my childhood friends. Not only because they are the same characters that were my source of calm as a child, but also I knew they were the lifesavers we so desperately needed.

Well … I guess iPads and big yellow birds aren’t that comforting to teething babies that are 30,000 feet up in the air. The iPad went flying and I sunk into my seat holding my very unhappy girl tight. I was officially out of ideas.

Hawaiian fun in the sun – Courtesy Marla Sokoloff

A kind woman in front of me asked to hold Elliotte. She saw in my eyes that I was breaking down and she was a mom who got it. She understood. She didn’t judge or hate us for disrupting the beginning of her holiday vacation — she was happy to help because she had once been in our shoes with her own child. Elliotte enjoyed the break from her parents and was actually smiling in her arms.

We finally arrived in paradise and upon landing, Alec and I decided that we were moving to Hawaii as we were never going to step foot on a plane ever again.

In all fairness, in between Thanksgiving and Christmas, Elliotte went from having two teeth to eight teeth so I think the plane and cabin pressure exacerbated any existing pain she was already having. Our journey home was slightly better and she even slept for two beautiful hours!

Thank you for letting me share my story — I would absolutely love to hear some of your travel woes! I’m sure it’s even more fun for those of you who have multiple children.

Don’t forget to follow me on Twitter @marlasok or leave your comments below!

Until next time … xo,

– Marla Sokoloff

More from Marla’s PEOPLE.com blog series:

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Lilly drug chosen for Alzheimer's prevention study

Researchers have chosen an experimental drug by Eli Lilly & Co. for a large federally funded study testing whether it's possible to prevent Alzheimer's disease in older people at high risk of developing it.

The drug, called solanezumab (sol-ah-NAYZ-uh-mab), is designed to bind to and help clear the sticky deposits that clog patients' brains.

Earlier studies found it did not help people with moderate to severe Alzheimer's but it showed some promise against milder disease. Researchers think it might work better if given before symptoms start.

"The hope is we can catch people before they decline," which can come 10 years or more after plaques first show up in the brain, said Dr. Reisa Sperling, director of the Alzheimer's center at Brigham and Women's Hospital in Boston.

She will help lead the new study, which will involve 1,000 people ages 70 to 85 whose brain scans show plaque buildup but who do not yet have any symptoms of dementia. They will get monthly infusions of solanezumab or a dummy drug for three years. The main goal will be slowing the rate of cognitive decline. The study will be done at 50 sites in the U.S. and possibly more in Canada, Australia and Europe, Sperling said.

In October, researchers said combined results from two studies of solanezumab suggested it might modestly slow mental decline, especially in patients with mild disease. Taken separately, the studies missed their main goals of significantly slowing the mind-robbing disease or improving activities of daily living.

Those results were not considered good enough to win the drug approval. So in December, Lilly said it would start another large study of it this year to try to confirm the hopeful results seen patients with mild disease. That is separate from the federal study Sperling will head.

About 35 million people worldwide have dementia, and Alzheimer's is the most common type. In the U.S., about 5 million have Alzheimer's. Current medicines such as Aricept and Namenda just temporarily ease symptoms. There is no known cure.

___

Online:

Alzheimer's info: http://www.alzheimers.gov

Alzheimer's Association: http://www.alz.org

___

Follow Marilynn Marchione's coverage at http://twitter.com/MMarchioneAP

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Consumer sentiment at year low; fiscal debate weighs

NEW YORK (Reuters) - Consumer sentiment unexpectedly deteriorated for a second straight month to its lowest in over a year in January, with many consumers citing fallout from the recent "fiscal cliff" debate in Washington, a survey released on Friday showed.

The sharp drop in sentiment over the last two months coincides with rancorous federal budget negotiations that have led to higher taxes for many Americans.

Just weeks after that deal, President Barack Obama and Republican lawmakers are expected to enter another tough round of negotiations over spending cuts, which could dent consumer confidence still further.

"The handling of the fiscal cliff talks and the realization that paychecks are going to be smaller due to the sunset of the payroll tax holiday are probably weighing on consumer attitudes at the moment," said Thomas Simons, a money market economist at Jefferies & Co. in New York.

While most of the scheduled tax hikes and spending cuts forming the fiscal cliff were avoided when Congress struck a deal on January 1, most U.S. workers saw their take-home salary diminished by the expiry of two percentage-point cut in payroll taxes.

"With the debt ceiling yet to be tackled and more political acrimony on the way, we suspect that confidence has room to deteriorate further," Simons said.

The Thomson Reuters/University of Michigan's preliminary reading on the overall index of consumer sentiment came in at 71.3, down from 72.9 the month before. The index was at its lowest since December 2011. It was also below the median forecast of 75 among economists polled by Reuters.

"The most unique aspect of the early January data was that an all-time record number of consumers - 35 percent - negatively referred to the fiscal cliff negotiations," survey director Richard Curtin said in a statement.

"Importantly, the debt ceiling debate is still upcoming and could further weaken confidence," he said.

House Republicans have signaled they might support a short-term extension of U.S. borrowing authority when the government exhausts that capacity sometime between mid-February and early March. A failure by Congress to raise this debt ceiling could result in a market-rattling government default.

On Friday, Republican House Majority Leader Eric Cantor said the House would consider a bill next week to extend the debt limit by three months in order to force the Senate to pass a budget.

U.S. stocks remained little changed after the data. The S&P 500 <.spx> hit a five-year high in the last session. But on Friday, a weak outlook from Intel offset encouraging data out of China and a fourth-quarter profit at Morgan Stanley .

So far there has been a disconnect between what consumers say and do. U.S. retail sales increased a better-than-expected 0.5 percent in December. But given the recent weakening in sentiment investors will be watching for any signs that spending is starting to slip.

"The impact on consumers will be from the hike in the social security tax. That is undoubtedly going to hit discretionary spending. So this may be a signal of things to come," said Michael Woolfolk, a senior currency strategist at BNY Mellon in New York.

The consumer survey's barometer of current economic conditions fell to 84.8 from 87.0 and was below a forecast of 88.0. The gauge hit its lowest since July.

The survey's gauge of consumer expectations also slipped, hitting its lowest since November 2011 at 62.7 from 63.8, and was below an expected 65.2.

The survey's one-year inflation expectations rose to 3.4 percent from 3.2 percent, while the survey's five-to-10-year inflation outlook was unchanged at 2.9 percent.

(Additional reporting by Steven C. Johnson and Ellen Freilich; Editing by Andrea Ricci)

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The Lede Blog: Live Updates on Armstrong's Confession

As the second part of Lance Armstrong’s televised confession that he doped and lied his way to seven Tour de France titles is broadcast on the Oprah Winfrey Network Friday night, The Lede will have real-time fact-checking and analysis from New York Times reporters, including Juliet Macur and Naila-Jean Meyers. We will also round up reactions from fans, bloggers, journalists and fellow riders once the broadcast and live stream gets underway, at 9 p.m. Eastern Time.

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Video game puts players in shoes of Syrian rebels

BEIRUT (AP) — A new video game based on Syria‘s civil war challenges players to make the hard choices facing the country’s rebels. Is it better to negotiate peace with the regime of President Bashar Assad, for example, or dispatch jihadist fighters to kill pro-government thugs?

The British designer of “Endgame: Syria” says he hopes the game will inform people who might otherwise remain ignorant about the conflict.

Views differ, however, on the appropriateness of using a video game to discuss a complex crisis that has killed more than 60,000 people since March 2011. Computer giant Apple has refused to distribute the game and some consider the mere idea insulting. Others love it, and one fan from inside Syria has suggested changes to make the game better mirror the actual war.

The dispute comes amid wider arguments about violent video games since last month’s shooting in Newtown, Connecticut, that left 20 children and six adults dead. This week, the National Rifle Association revised the recommended age for a new shooting game after criticisms by liberal groups.

Tomas Rawlings, who designed the Syria game, said he got the idea while watching TV pundits debate the possible consequences of directly arming Syria’s rebels, which Western nations have declined to do. He said he thought a game could explore such questions by allowing players to make choices and see their consequences.

“For those who don’t want to read a newspaper but still care about the world, this is a way for them to find out about things,” said Rawlings, the design and production director of U.K.-based Auroch Digital.

In the simple game, which took about two weeks to build, the player assumes the role of the rebels seeking to topple Assad’s regime. The play alternates between political and military stages. In each stage, the player sees cards representing regime actions and must choose the rebel response.

The choices seek to mirror the real conflict. The regime may get declarations of support from Russia, China or Iran to boost its popularity while the rebels receive support from the United States, Turkey or Saudi Arabia – reflecting the foreign powers backing the two sides.

In battle, the regime may deploy conventional military forces like infantry, tanks and artillery as well as pro-government thugs known as shabiha. The rebels’ choices include sympathetic Palestinian or Kurdish militias, assassins or jihadist fighters known as muhajideen.

Some of the rebels’ strongest attacks also kill civilians, reducing rebel popularity and seeking to reflect the war’s complexity.

All along, the player is given basic information about the conflict, learning that Islamists once persecuted by the regime now consider the fight a holy war and that the shabiha are accused of massacring civilians.

The game ends when one side loses its support or the sides agree to a peace deal. The player is then told what follows. The longer the fighting lasts, the worse the aftermath, as chaos, sectarian conflict and Islamic militancy spread.

The lasting impression is that no matter which side wins, Syria loses.

Rawlings said that’s the game’s point.

“You can win the battle militarily but still lose the peace because the cost of winning militarily has fractured the country so much that the war keeps going,” he said. “You can also end the war so that there is less of that.”

The game was released on the company’s website and as a free download from Google for Android devices on December 12. Rawlings submitted the game to Apple to distribute via its App Store but the company rejected it.

Apple declined to comment, but Rawlings’s rejection referred to a company guideline for mobile apps: ” ‘Enemies’ within the context of a game cannot solely target a specific race, culture, a real government or corporation, or any other real entity.”

Rawlings is modifying the game, though he worries it will weaken it.

“It will still be the same overall experience, but it will reduce the value of the game to inform people,” he said.

News of the game was greeted with a mix of interest and outrage online. Some complained that players can’t take the regime side, while others found it wrong to make a game about a brutal war.

“Rawlings has mistakenly understood the Syrian war as a nonchalant ‘experience’ that people can play while waiting for the train to work,” said Samar Aburahma, a university student of Palestinian descent in San Francisco who refused to try the game. “It is beyond insulting to Syrians, especially given the fact that war is ongoing.”

Others find it a valuable, if limited, approach to the conflict.

Andrea Stanton, a religious studies professor at the University of Denver who studies Syria, said she responded emotionally to the game.

“It isn’t really a fun game to play,” she said, noting that she was angry when she lost and felt dread when the frequency of deadly regime airstrikes went up as the game progressed – as it has in the real conflict.

“This a very sobering game in that you sense how quickly the military stakes escalate and how little the political phase has to do with actual Syrians,” she said.

She is organizing a campus activity for students to play and discuss the game.

“I think it is very valuable for teaching and getting people to experience a sense of the limited options the rebels face,” she said.

It is unclear how many people have played the game. Google says it has been downloaded as many as 5,000 times from its site, and Rawlings says more have played online. He guesses more than 10,000 people have tried it.

Few in Syria are likely to have played it, since fighting has made the Internet and even electricity rare in some parts of the country.

One 18-year-old Syrian gamer liked the game so much, however, that he sent Rawlings a list of suggestions for improvement.

Reached via Skype, he said the jihadist fighters should be called Jabhat al-Nusra, after an extremist rebel group that the U.S. has designated as a terrorist organization.

He also pointed out that few rebel groups have tanks, as they do in the game, and suggested new rebel tactics.

“Car bombs are used lots in Syria, so that would make the game more realistic,” he said.

He said he hoped the game would help people understand the situation.

“I wish there were a 3D strategy game about Syria so you could feel the destruction on the ground,” he said.

The player, who spoke on condition of anonymity for fear of reprisals, said his feelings playing the game often mirror his feelings about the war. He wants peace but can’t imagine the rebels accepting a negotiated solution given how many people have died.

“Right this second, I want the war in Syria to stop, but when you see what is happening on the ground there is no way to make peace,” he said. “When I play the game like a rebel, I have to reject the peace.”

___

Associated Press writer Michael Liedtke contributed reporting.

Online: http://gamethenews.net/index.php/endgame-syria/

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See Personal Pics of Rosie O'Donnell's Daughter Dakota

After welcoming her fifth child, the comedian gives fans an intimate glimpse into her mommy joy in a series of personal photos

Credit: Courtesy of Rosie O'Donnell

Updated: Thursday Jan 17, 2013 | 12:00 PM EST
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Will Obama's order lead to surge in gun research?

MILWAUKEE (AP) — Nearly as many Americans die from guns as from car crashes each year. We know plenty about the second problem and far less about the first. A scarcity of research on how to prevent gun violence has left policymakers shooting in the dark as they craft gun control measures without much evidence of what works.

That could change with President Barack Obama's order Wednesday to ease research restrictions pushed through long ago by the gun lobby. The White House declared that a 1996 law banning use of money to "advocate or promote gun control" should not keep the Centers for Disease Control and Prevention and other federal agencies from doing any work on the topic.

Obama can only do so much, though. Several experts say Congress will have to be on board before anything much changes, especially when it comes to spending money.

How severely have the restrictions affected the CDC?

Its website's A-to-Z list of health topics, which includes such obscure ones as Rift Valley fever, does not include guns or firearms. Searching the site for "guns" brings up dozens of reports on nail gun and BB gun injuries.

The restrictions have done damage "without a doubt" and the CDC has been "overly cautious" about interpreting them, said Daniel Webster, director of the Center for Gun Policy and Research at the Johns Hopkins Bloomberg School of Public Health.

"The law is so vague it puts a virtual freeze on gun violence research," said a statement from Michael Halpern of the Union of Concerned Scientists. "It's like censorship: When people don't know what's prohibited, they assume everything is prohibited."

Many have called for a public health approach to gun violence like the highway safety measures, product changes and driving laws that slashed deaths from car crashes decades ago even as the number of vehicles on the road rose.

"The answer wasn't taking away cars," said Dr. Georges Benjamin, executive director of the American Public Health Association.

However, while much is known about vehicles and victims in crashes, similar details are lacking about gun violence.

Some unknowns:

—How many people own firearms in various cities and what types.

—What states have the highest proportion of gun ownership.

—Whether gun ownership correlates with homicide rates in a city.

—How many guns used in homicides were bought legally.

—Where juveniles involved in gun fatalities got their weapons.

—What factors contribute to mass shootings like the Newtown, Conn., one that killed 26 people at a school.

"If an airplane crashed today with 20 children and 6 adults there would be a full-scale investigation of the causes and it would be linked to previous research," said Dr. Stephen Hargarten, director of the Injury Research Center at the Medical College of Wisconsin.

"There's no such system that's comparable to that" for gun violence, he said.

One reason is changes pushed by the National Rifle Association and its allies in 1996, a few years after a major study showed that people who lived in homes with firearms were more likely to be homicide or suicide victims. A rule tacked onto appropriations for the Department of Health and Human Services barred use of funds for "the advocacy or promotion of gun control."

Also, at the gun group's urging, U.S. Rep. Jay Dickey, a Republican from Arkansas, led an effort to remove $2.6 million from the CDC's injury prevention center, which had led most of the research on guns. The money was later restored but earmarked for brain injury research.

"What the NRA did was basically terrorize the research community and terrorize the CDC," said Dr. Mark Rosenberg, who headed the CDC's injury center at the time. "They went after the researchers, they went after institutions, they went after CDC in a very big way, and they went after me," he said. "They didn't want the data to be collected because they were threatened by what the data were showing."

Dickey, who is now retired, said Wednesday that his real concern was the researcher who led that gun ownership study, who Dickey described as being "in his own kingdom or fiefdom" and believing guns are bad.

He and Rosenberg said they have modified their views over time and now both agree that research is needed. They put out a joint statement Wednesday urging research that prevents firearm injuries while also protecting the rights "of legitimate gun owners."

"We ought to research the whole environment, both sides — what the benefits of having guns are and what are the benefits of not having guns," Dickey said. "We should study any part of this problem," including whether armed guards at schools would help, as the National Rifle Association has suggested.

Association officials did not respond to requests for comment. A statement Wednesday said the group "has led efforts to promote safety and responsible gun ownership" and that "attacking firearms" is not the answer. It said nothing about research.

The 1996 law "had a chilling effect. It basically brought the field of firearm-related research to a screeching halt," said Benjamin of the Public Health Association.

Webster said researchers like him had to "partition" themselves so whatever small money they received from the CDC was not used for anything that could be construed as gun policy. One example was a grant he received to evaluate a community-based program to reduce street gun violence in Baltimore, modeled after a successful program in Chicago called CeaseFire. He had to make sure the work included nothing that could be interpreted as gun control research, even though other privately funded research might.

Private funds from foundations have come nowhere near to filling the gap from lack of federal funding, Hargarten said. He and more than 100 other doctors and scientists recently sent Vice President Joe Biden a letter urging more research, saying the lack of it was compounding "the tragedy of gun violence."

Since 1973, the government has awarded 89 grants to study rabies, of which there were 65 cases; 212 grants for cholera, with 400 cases, yet only three grants for firearm injuries that topped 3 million, they wrote. The CDC spends just about $100,000 a year out of its multibillion-dollar budget on firearm-related research, New York Mayor Michael Bloomberg has said.

"It's so out of proportion to the burden, however you measure it," said Dr. Matthew Miller, associate professor of health policy at the Harvard School of Public Health. As a result, "we don't know really simple things," such as whether tighter gun rules in New York will curb gun trafficking "or is some other pipeline going to open up" in another state, he said.

What now?

CDC officials refused to discuss the topic on the record — a possible sign of how gun shy of the issue the agency has been even after the president's order.

Health and Human Services Secretary Kathleen Sebelius said in a statement that her agency is "committed to re-engaging gun violence research."

Others are more cautious. The Union of Concerned Scientists said the White House's view that the law does not ban gun research is helpful, but not enough to clarify the situation for scientists, and that congressional action is needed.

Dickey, the former congressman, agreed.

"Congress is supposed to do that. He's not supposed to do that," Dickey said of Obama's order. "The restrictions were placed there by Congress.

"What I was hoping for ... is 'let's do this together,'" Dickey said.

___

Follow Marilynn Marchione's coverage at http://twitter.com/MMarchioneAP

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Housing, job data push S&P to five-year high; Intel down late

NEW YORK (Reuters) - Stronger-than-expected data on housing starts and jobless claims lit a fire under stocks on Thursday, pushing the S&P 500 to a five-year high and its third day of gains.

A pair of economic reports lifted investors' sentiment. The number of Americans filing new claims for unemployment benefits fell to a five-year low last week and housing starts jumped last month to the highest since June 2008.

Strength in the housing and labor markets is key to sustained growth and higher corporate profits, helping to bring out buyers even on a day when earnings reports were mixed.

Gains were tempered by weakness in the financial sector, with Bank of America down 4.2 percent to $11.28 and Citigroup off 2.9 percent to $41.24 after their results.

In other negative earnings news, shares of chipmaker Intel fell 5.2 percent to $21.49 in extended-hours trading after the company forecast quarterly revenue that fell short of analysts' expectations. Intel had ended the regular session up 2.6 percent at $22.68.

The S&P 500 ended at its highest since December 2007 and now sits just 5.6 percent from its all-time closing high of 1,565.15.

"Having consolidated really for the last two weeks, the fact that we broke out, I think that that is sucking in quite a bit of money," said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.

The Dow Jones industrial average <.dji> was up 84.79 points, or 0.63 percent, at 13,596.02. The Standard & Poor's 500 Index <.spx> was up 8.31 points, or 0.56 percent, at 1,480.94. The Nasdaq Composite Index <.ixic> was up 18.46 points, or 0.59 percent, at 3,136.00.

Better-than-expected earnings and revenue reported by online marketplace eBay late Wednesday helped the stock gain 2.7 percent to $54.33.

In the housing sector, PulteGroup Inc shares gained 4.9 percent to $20.29 and Toll Brothers Inc advanced 3.1 percent to $35.99. The PHLX housing sector index <.hgx> climbed 2.4 percent, reaching its highest close since August 2007.

Semiconductor shares <.sox> rose 2 percent to the highest close in eight months.

Financials were the only S&P 500 sector to register a slight decline for the day.

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.

Energy shares led gains on the Dow as U.S. crude oil prices jumped more than 1 percent. Shares of Exxon Mobil were up 0.8 percent at $90.20 while shares of Chevron were up 0.7 percent at $114.75.

S&P 500 earnings are expected to have risen 2.3 percent in the fourth quarter, Thomson Reuters data showed. Expectations for the quarter have fallen considerably since October when a 9.9 percent gain was estimated.

Volume was roughly 6.5 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 about 22 to 7 and on the Nasdaq by about 2 to 1.

(Additional reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)

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The Lede Blog: Live Updates on Armstrong's Oprah Interview

The Lede is rounding up online reaction to Lance Armstrong’s interview with Oprah Winfrey on Thursday night in real-time, with additional fact-checking and context provided by Juliet Macur and Sarah Lyall. The broadcast begins at 9 p.m. Eastern Time and will be streamed live on the Oprah Winfrey Network’s Web site.

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BlackBerry maker plans local skate, publicity in Waterloo to celebrate new phone

WATERLOO, Ont. – Call it BlackBerry Town, even if the name isn’t official.

In the lead up to the BlackBerry smartphone unveiling later this month, creator Research In Motion is turning its Waterloo, Ont., home base into a celebration of the device.

The company plans to decorate light poles in areas of Waterloo and neighbouring Kitchener with banners that promote its latest smartphone and thank the community for its support.

City councillors in Kitchener voted earlier this week to make an exception to rules that prevent corporations from using public property to advertise.

RIM says it is making plans for other events as well.

The company will hold skating rink parties at Kitchener City Hall and in Waterloo Town Square on Jan. 30 to coincide with the unveiling of its new BlackBerry devices.

Gadgets News Headlines – Yahoo! News

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Baby Boy on the Way for Kara DioGuardi

Mom & Babies
Celebrity Baby Blog

01/16/2013 at 08:15 PM ET

Cindy Ord/Getty

Kara DioGuardi is going to be a mom!

The Grammy-nominated songwriter, who also served as a judge on American Idol‘s eighth and ninth seasons, confirms to PEOPLE exclusively that she and husband Mike McCuddy will welcome their first child via gestational surrogate in the coming weeks.

“We are eagerly awaiting the healthy and happy birth of our son Greyson James Carroll McCuddy,” DioGuardi, 42, tells PEOPLE.

After years of struggling with fertility issues and multiple failed IVF attempts, the couple, who wed in 2009, decided to explore other paths to parenthood — including adoption and surrogacy.

In the end, says DioGuardi, “We made a personal decision to try with a surrogate. I asked someone we knew, a friend. And on the first try, it worked.”

“We’re praying for our surrogate, that she gets through this and that it’s as easy on her as it can possibly be, because she’s been a gem throughout the whole process,” says the songwriter and music publisher.

“I’ve got two people on my mind: her and the baby. She’s given us this incredible gift.”

– Marisa Laudadio

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Large study confirms flu vaccine safe in pregnancy

NEW YORK (AP) — A large study offers reassuring news for pregnant women: It's safe to get a flu shot.

The research found no evidence that the vaccine increases the risk of losing a fetus, and may prevent some deaths. Getting the flu while pregnant makes fetal death more likely, the Norwegian research showed.

The flu vaccine has long been considered safe for pregnant women and their fetus. U.S. health officials began recommending flu shots for them more than five decades ago, following a higher death rate in pregnant women during a flu pandemic in the late 1950s.

But the study is perhaps the largest look at the safety and value of flu vaccination during pregnancy, experts say.

"This is the kind of information we need to provide our patients when discussing that flu vaccine is important for everyone, particularly for pregnant women," said Dr. Geeta Swamy, a researcher who studies vaccines and pregnant women at Duke University Medical Center.

The study was released by the New England Journal of Medicine on Wednesday as the United States and Europe suffer through an early and intense flu season. A U.S. obstetricians group this week reminded members that it's not too late for their pregnant patients to get vaccinated.

The new study was led by the Norwegian Institute of Public Health. It tracked pregnancies in Norway in 2009 and 2010 during an international epidemic of a new swine flu strain.

Before 2009, pregnant women in Norway were not routinely advised to get flu shots. But during the pandemic, vaccinations against the new strain were recommended for those in their second or third trimester.

The study focused on more than 113,000 pregnancies. Of those, 492 ended in the death of the fetus. The researchers calculated that the risk of fetal death was nearly twice as high for women who weren't vaccinated as it was in vaccinated mothers.

U.S. flu vaccination rates for pregnant women grew in the wake of the 2009 swine flu pandemic, from less than 15 percent to about 50 percent. But health officials say those rates need to be higher to protect newborns as well. Infants can't be vaccinated until 6 months, but studies have shown they pick up some protection if their mothers got the annual shot, experts say.

Because some drugs and vaccines can be harmful to a fetus, there is a long-standing concern about giving any medicine to a pregnant woman, experts acknowledged. But this study should ease any worries about the flu shot, said Dr. Denise Jamieson of the Centers for Disease Control and Prevention.

"The vaccine is safe," she said.

___

Online:

Medical journal: http://www.nejm.org

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S&P 500 ends flat as bank profits temper growth concerns

NEW YORK (Reuters) - The S&P 500 ended nearly flat on Wednesday as solid earnings from two major banks and a bounceback in Apple shares offset concerns about a lower forecast for global growth in 2013.

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

JPMorgan shares rose 1 percent to $46.82, while Goldman climbed 4.1 percent to $141.09.

They were among the first big banks to report results and helped to lift estimates for S&P 500 corporate earnings slightly, to a 2.2 percent gain, Thomson Reuters data showed.

"Pretty solid numbers from both JPMorgan and Goldman Sachs are putting a lot of momentum behind the financials, with a lot more names to report this week. But I think that's helping to put a better bid to the market overall," said Michael James, senior trader at Wedbush Morgan in Los Angeles.

Apple rebounded after three days of losses, helping the Nasdaq outperform the S&P 500 and Dow. Apple rose 4.2 percent to $506.09. It closed below $500 on Tuesday for the first time since February.

"There could not have been more negativity around Apple going into today. So was it due for an oversold bounce on a trading basis? Absolutely," James said.

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.

The Dow Jones industrial average <.dji> was down 23.66 points, or 0.17 percent, at 13,511.23. The Standard & Poor's 500 Index <.spx> was up 0.29 points, or 0.02 percent, at 1,472.63. The Nasdaq Composite Index <.ixic> was up 6.77 points, or 0.22 percent, at 3,117.54.

The biggest drag on the Dow was Boeing , whose shares fell 3.4 percent to $74.34 on concerns about 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.

After the bell, shares of eBay were trading up 0.7 at $53.28, reversing an initial decline following the release of its results. Also after the close, shares of CBS rose 8.3 percent to $41.10 after it said it will convert its Outdoor Americas division into a real estate investment trust. [ID:nL4N0AL98X]

Earlier in the day, U.S. economic data showed 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.

Other data showed U.S. homebuilder confidence in the market for single family homes held steady near seven year highs in January, suggesting the outlook for the housing market remained upbeat.

Volume was roughly 5.6 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 8 to 7 and on the Nasdaq by almost 7 to 5.

(Additional reporting by Chuck Mikolajczak; Editing by Nick Zieminski and Kenneth Barry)

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U.S. Sees Hazy Threat From Mali Militants

WASHINGTON — As Islamic militants methodically carved out a base in the desert of northern Mali over the past year, officials in Washington, Paris and African capitals struggling with military plans to drive the Islamists out of the country agreed on one principle: African troops, not European or American soldiers, would fight the battle of Mali.

But the surprise French assault last Friday to blunt the Islamists’ advance upended those plans and set off a cascading series of events, culminating in a raid on Wednesday by militants on a foreign-run gas field in Algeria. That attack threatens to widen the violence in an impoverished region and drag Western governments deeper into combating an incipient insurgency.

And yet the rush of events has masked the fact that officials in Washington still have only an impressionistic understanding of the militant groups that have established a safe haven in Mali, and they are deeply divided about whether some of these groups even pose a threat to the United States.

Moreover, the hostage situation in Algeria has only heightened concerns that a Western military intervention could transform militant groups that once had only a regional focus into avowed enemies of the United States — in other words, that the backlash might end up being worse than the original threat.

Largely for these reasons, the Obama administration adopted a strategy over the past year to contain the Islamists in Mali until African troops were ready to confront them, rather than to challenge them directly with an American military campaign of drone strikes or commando raids.

During Congressional testimony in June, Johnnie Carson, the assistant secretary of state for African affairs, played down the terrorist threat to the United States from Mali, saying that the Qaeda affiliate operating there “has not demonstrated the capability to threaten U.S. interests outside of West or North Africa, and it has not threatened to attack the U.S. homeland.”

Some Pentagon officials have long taken a more hawkish stance, and they cite intelligence reports that fighters with ties to Al Qaeda in the Islamic Maghreb, which has a loose affiliation to the remnants of Osama bin Laden’s terrorist network, played a role in the deadly attack in September on the American diplomatic compound in Benghazi, Libya. They have pushed for targeted strikes against Islamist leaders in northern Mali, arguing that killing the leadership could permanently cripple the strength of the militants.

The administration has embraced a targeted killing strategy elsewhere, notably in Pakistan, Yemen and Somalia, after top White House, Pentagon and C.I.A. officials determined that militants in those countries were bent on attacking the United States.

Asked if fighters from Al Qaeda in the Islamic Maghreb posed such an imminent threat, Gen. Carter F. Ham, the top American commander in Africa, said, “Probably not.” But, he said in an interview, “they subscribe to Al Qaeda’s ideology” and have said that their intent is to attack Westerners in Europe and, “if they could, back to the United States.”

Defense Secretary Leon E. Panetta made it clear on Wednesday that he considered the group a serious danger. “This is an Al Qaeda operation,” he told reporters while traveling in Italy, “and it is for that reason that we have always been concerned about their presence in Mali, because they would use it as a base of operations to do exactly what happened in Algeria.”

It is too early to judge the impact of the French-led offensive in Mali, which came after an urgent plea by Mali’s government for help in repelling Islamist fighters who were rapidly moving south. But on Wednesday, some American officials said that the hostage episode in Algeria could be just the beginning of a wave of attacks against foreigners in the region. And there is a chance that if the Americans taken hostage on Wednesday are killed by their captors, American officials might reconsider their pledges not to commit ground troops to the battle.

Elisabeth Bumiller and Michael R. Gordon contributed reporting.

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Tablet shipments in 2013 could be lower than previously expected

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The Bachelor Celebrates 25 Seasons

TV Watch

The Bachelor

By Monica Rizzo

01/15/2013 at 07:50 PM EST

Sean Lowe and past stars and contestants of The Bachelor

Warner Bros.

Happy anniversary!

The Bachelor's current star, Sean Lowe, was joined by past franchise favorites on Jan. 11 to celebrate 25 seasons of the hit ABC reality dating show.

The Texas hunk clinked glasses at the famed Agoura Hills, Calif., Bachelor mansion with series creator Mike Fleiss and past Bachelorettes Ali Fedotowsky, Trista Sutter, Jillian Harris, DeAnna Pappas and the show's most recent star, Emily Maynard.

Also on hand were former Bachelor Jason Mesnick and his wife, Molly, who is expecting the couple's first child in March, as well as former contestants Courtney Robertson, Michael and Stephen Stagliano, Erica Rose and Casey Shteamer.

Jake Pavelka was also there, though he didn't appear in a group photo (above).

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Risk to all ages: 100 kids die of flu each year

NEW YORK (AP) — How bad is this flu season, exactly? Look to the children.

Twenty flu-related deaths have been reported in kids so far this winter, one of the worst tolls this early in the year since the government started keeping track in 2004.

But while such a tally is tragic, that does not mean this year will turn out to be unusually bad. Roughly 100 children die in an average flu season, and it's not yet clear the nation will reach that total.

The deaths this year have included a 6-year-old girl in Maine, a 15-year Michigan student who loved robotics, and 6-foot-4 Texas high school senior Max Schwolert, who grew sick in Wisconsin while visiting his grandparents for the holidays.

"He was kind of a gentle giant" whose death has had a huge impact on his hometown of Flower Mound, said Phil Schwolert, the Texas boy's uncle.

Health officials only started tracking pediatric flu deaths nine years ago, after media reports called attention to children's deaths. That was in 2003-04 when the primary flu germ was the same dangerous flu bug as the one dominating this year. It also was an earlier than normal flu season.

The government ultimately received reports of 153 flu-related deaths in children, from 40 states, and most of them had occurred by the beginning of January. But the reporting was scattershot. So in October 2004, the government started requiring all states to report flu-related deaths in kids.

Other things changed, most notably a broad expansion of who should get flu shots. During the terrible 2003-04 season, flu shots were only advised for children ages 6 months to 2 years.

That didn't help 4-year-old Amanda Kanowitz, who one day in late February 2004 came home from preschool with a cough and died less than three days later. Amanda was found dead in her bed that terrible Monday morning, by her mother.

"The worst day of our lives," said her father, Richard Kanowitz, a Manhattan attorney who went on to found a vaccine-promoting group called Families Fighting Flu.

The Centers for Disease Control and Prevention gradually expanded its flu shot guidance, and by 2008 all kids 6 months and older were urged to get the vaccine. As a result, the vaccination rate for kids grew from under 10 percent back then to around 40 percent today.

Flu vaccine is also much more plentiful. Roughly 130 million doses have been distributed this season, compared to 83 million back then. Public education seems to be better, too, Kanowitz observed.

The last unusually bad flu season for children, was 2009-10 — the year of the new swine flu, which hit young people especially hard. As of early January 2010, 236 flu-related deaths of kids had been reported since the previous August.

It's been difficult to compare the current flu season to those of other winters because this one started about a month earlier than usual.

Look at it this way: The nation is currently about five weeks into flu season, as measured by the first time flu case reports cross above a certain threshold. Two years ago, the nation wasn't five weeks into its flu season until early February, and at that point there were 30 pediatric flu deaths — or 10 more than have been reported at about the same point this year. That suggests that when the dust settles, this season may not be as bad as the one only two years ago.

But for some families, it will be remembered as the worst ever.

In Maine, 6-year-old Avery Lane — a first-grader in Benton who had recently received student-of-the-week honors — died in December following a case of the flu, according to press reports. She was Maine's first pediatric flu death in about two years, a Maine health official said.

In Michigan, 15-year-old Joshua Polehna died two weeks ago after suffering flu-like symptoms. The Lake Fenton High School student was the state's fourth pediatric flu death this year, according to published reports.

And in Texas, the town of Flower Mound mourned Schwolert, a healthy, lanky 17-year-old who loved to golf and taught Sunday school at the church where his father was a youth pastor.

Late last month, he and his family drove 16 hours to spend the holidays with his grandparents in Amery, Wis., a small town near the Minnesota state line. Max felt fluish on Christmas Eve, seemed better the next morning but grew worse that night. The family decided to postpone the drive home and took him to a local hospital. He was transferred to a medical center in St. Paul, Minn., where he died on Dec. 29.

He'd been accepted to Oklahoma State University before the Christmas trip. And an acceptance letter from the University of Minnesota arrived in Texas while Max was sick in Minnesota, his uncle said.

Nearly 1,400 people attended a memorial service for Max two weeks ago in Texas.

"He exuded care and love for other people," Phil Schwolert said.

"The bottom line is take care of your kids, be close to your kids," he said.

On average, an estimated 24,000 Americans die each flu season, according to the Centers for Disease Control and Prevention. People who are elderly and with certain chronic health conditions are generally at greatest risk from flu and its complications.

The current vaccine is about 60 percent effective, and is considered the best protection available. Max Schwolert had not been vaccinated, nor had the majority of the other pediatric deaths.

Even if kids are vaccinated, parents should be watchful for unusually severe symptoms, said Lyn Finelli of the CDC.

"If they have influenza-like illness and are lethargic, or not eating, or look punky — or if a parent's intuition is the kid doesn't look right and they're alarmed — they need to call the doctor and take them to the doctor," she advised.

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CDC advice on kids: http://www.cdc.gov/flu/protect/children.htm

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Dow, S&P 500 inch up with retailers but Apple drags again

NEW YORK (Reuters) - The Dow and S&P 500 edged higher on Tuesday after stronger-than-expected retail data, though tech heavyweight Apple dragged on the market for a third day.

Apple was the biggest weight on both the S&P 500 and Nasdaq 100 <.ndx> after reports on Monday of cuts to orders for iPhone parts. Shares declined 3.2 percent to $485.92 and closed below $500 for the first time since February.

Retail stocks advanced after a government report showing retail sales rose more than expected in December was seen as a favorable sign for fourth-quarter growth. A separate report showed manufacturing activity in New York state contracted for the sixth month in a row in January.

"A little better-than-expected news on retail sales once again reinforces that the consumer remains alive and reasonably well," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, which manages about $54 billion in assets.

Among retailers, American Eagle Outfitters Inc gained 4.8 percent to $20.58 and Gap Inc rose 3.4 percent to $32.46. The Morgan Stanley retail index <.mvr> advanced 1.5 percent.

Express Inc surged 23.8 percent to $17.40 after the apparel retailer raised its fourth-quarter and full year 2012 outlook.

The Dow Jones industrial average <.dji> was up 27.57 points, or 0.20 percent, at 13,534.89. The Standard & Poor's 500 Index <.spx> was up 1.66 points, or 0.11 percent, at 1,472.34. The Nasdaq Composite Index <.ixic> was down 6.72 points, or 0.22 percent, at 3,110.78.

Apple's stock has lost about 7 percent in the last three sessions and is down 8.7 percent since the start of the year.

"It's tough to discern exactly what's putting the pressure on it. But at the end of the day, its influence, considering it's still 3 1/2 to 4 percent of the S&P 500 index, is being felt," Luschini said.

"I attribute (it) to just some of the bloom coming off of the rose. They haven't necessarily done anything wrong, as much as others have caught up."

Also keeping investors on edge is the looming debt ceiling debate. 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 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.

An expected lackluster earnings season, too, 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 1.8 percent from a year ago, Thomson Reuters data showed.

Homebuilder Lennar reported a sharp rise in quarterly profit, but the stock declined 0.8 percent to $40.68 on worries that growth in orders was slowing.

Dell Inc shares added to Monday's gains, ending up 7.2 percent to $13.17 after sources said talks to take the computer maker private are in an advanced stage.

On the down side, shares of Facebook dropped 2.7 percent to $30.10. The company unveiled a "graph search" feature that CEO Mark Zuckerberg said would help its billion-plus users sort through content within the social network and its content feeds.

Volume was roughly 5.8 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 about 17 to 12 and on the Nasdaq by about 13 to 11.

(Additional reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)

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Syrian Opposition Finds Hearts and Minds Are Elusive

Goran Tomasevic/Reuters

Rebel fighters in a neighborhood of Damascus on Tuesday. Many Syrians remain wary of the opposition and its assurances of how it would govern the country.

BEIRUT, Lebanon — As the Syrian civil war nears the two-year mark, the opponents of President Bashar al-Assad and their international backers have failed to win the backing of many government supporters, including minorities, a slice of the population whose help is essential not only to resolve the conflict, but also to keep Syria from becoming a failed state, analysts say.

Syrian opposition leaders in exile have repeatedly offered promises that a future Syria will guarantee equal rights to all citizens regardless of religion and ethnicity, including members of President Assad’s minority Alawite sect, and that government officials without “blood on their hands” will be safe. But that has done little to win the allegiance of a significant bloc of Syrians who are wary of the uprising.

“The opposition is in fact helping to hold the regime together,” said Peter Harling, an analyst with the International Crisis Group who meets in Syria with people on all sides of the conflict. “It seems to have no strategy to speak of when it comes to preserving what’s left of the state, wooing the Alawites within the regime or reaching out to those who don’t know who to hate most, the regime or the opposition.”

Analysts with contacts in Syria said that the opposition had failed to spell out how it would handle challenging political issues like the fate of the Baath Party, the army rank and file, and the public sector — which employs at least 1.2 million Syrians — or how it would curb sectarian violence and revenge killings. The opposition, critics say, has missed opportunities to split government support from within and has allowed Mr. Assad to portray himself to fence-sitters as the best bet to keep the Syrian state intact.

That vacuum, some analysts say, was the backdrop for Mr. Assad’s confident tone in a speech he gave on Jan. 6, when he offered to engage in political dialogue with opponents he considers acceptable.

Mr. Harling said the speech allowed Mr. Assad to try to persuade the undecided that he is still a plausible choice, and reflected a belief in the president’s circle — perhaps mistaken — that “people will ultimately come back to them, because they offer more of the prospect of a state.”

On Sunday, Russia’s foreign minister pointedly called on the opposition to offer specific counterproposals for a political solution rather than complain about Mr. Assad’s refusal to negotiate. And on Monday, Kofi Annan, the former United Nations secretary general, chided the United States and Russia for not working harder to bring the sides together, warning that the opposition’s insistence that Mr. Assad step down before any negotiations begin is perpetuating a stalemate and risking a descent into chaos.

The concerns come not only from Russia, Mr. Assad’s strongest ally, and Mr. Annan, who resigned as international envoy to Syria when his mediation efforts went nowhere. They are shared by a growing chorus of Middle East analysts, Syrian intellectuals and a former Syria adviser to the Obama administration, which has recognized the opposition as the country’s legitimate representative.

The former Syria adviser, Frederic C. Hof, wrote last month that although the opposition has offered general assurances to the one-third of Syrians who belong to minority groups, “probably no more than a handful” believe it, especially as jihadist groups grow more prominent on the battlefield and issue videotaped calls for the restoration of the Islamic caliphate.

“And why should they?” he wrote in an article published by the Atlantic Council, a research institute in Washington. “What would weigh heavier on the brain of a non-Sunni Arab (or a Sunni Arab committed to secular governance): the occasional word about the primacy of citizenship, or the televised chanting of hirsute warriors?”

Part of the problem is that the opposition, unlike the government, does not speak with one voice. It is divided among secular and religious members, exiles and those fighting inside Syria, and supporters and opponents of armed struggle. Even after reorganizing under pressure from the West, the coalition has yet to agree on a government in exile.

Yet, the coalition understands the danger, Samir Nachar, a member, said in an interview from Turkey.

“Everyone feels and knows that there is a real dilemma and danger when it comes to the morale of the Syrian citizen,” he said. “Unfortunately, we don’t have anything on the ground that can truly relieve the fears and the anxieties that are plaguing minorities at this time. Sadly, the Alawite sect has been taken hostage by this regime.”

Hania Mourtada and Kareem Fahim contributed reporting.

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