God Save the British Economy


Illustration by Tadaomi Shibuya







Entering the Bank of England is like walking back in time to the old British Empire. Its brass door is attended by the Pinks, men in black hats and pink tailcoats. Vast meeting rooms are decorated with richly colored carpets, high ceilings with gold filigree and ornate furniture. Between rooms, the marble floors bear monetary-themed mosaics. One depicts the development of the British pound. Elsewhere, the mosaics take the form of constellations — a reminder that the empire and its economy once dominated everywhere you could see the stars at night.








Muir Vidler for The New York Times

Adam Posen at the Bank of England in August.






One morning this summer, I went to the bank to visit Adam Posen, a member of its Monetary Policy Committee, the custodian of the pound. With bright red curly hair and a trim beard, Posen, who is 46, stands out in all the M.P.C.’s official photographs. He is “ fatter” and “fuzzier” than the other officials, he joked. Posen also happens to be only the second American economist ever to serve on the committee.


It’s impossible to imagine the uproar if President Obama ever nominated a British academic to work at the highest level of the Federal Reserve. But when Posen arrived, in September 2009, his job was to provide an outsider’s perspective. The bank was trying to steer Britain through the global financial crisis, and Posen seemed like a uniquely perfect fit. In the late 1990s, when he was a 30-year-old economist, his contrarian critique of Japan’s central bank and finance ministry helped that country put an end to its so-called Lost Decade. In the years since, Posen has become a well-respected adviser to (and critic of) many of the world’s key financial institutions. With this appointment, Posen crossed the line from scholar to decision maker. It was the first time that he had real power.


Posen arrived in London after the acute panic of the financial crisis had given way to the long slog we’re still in. At that point, policy makers around the world were given the task of assessing the damage and devising a plan that would best position the economy to function at normal levels. The United States had already responded with a roughly $800 billion stimulus package. In the spring of 2010, British voters went in another direction. They elected Prime Minister David Cameron, who had promised to reset the economy by severely cutting government spending, which would lead to significant public-sector layoffs. The economy’s only chance to return to long-term growth, Cameron argued, would be a painful, but brief, period of austerity. By shrinking the size of an inefficient government, Cameron explained, the budget would be balanced by 2015 and the private sector could lead the economy to full recovery.


Today these two approaches offer a crucial case study and perhaps a breakthrough in an age-old economic argument of austerity versus stimulus. In the past few years, the United States has experienced a steep downturn followed by a steady (though horrendously slow) upturn. The U.S. unemployment rate, which shot up to 10 percent at the end of 2009 from 4.4 percent in mid-2007, has now dropped steadily to 7.7 percent. It might be a frustrating pace, but it’s enough to persuade most economists that a recovery is under way.


The British economy, however, is profoundly stuck. Between fall 2007 and summer 2009, its unemployment rate jumped to 7.9 percent, from 5.2 percent. Yet in the three and a half years since — even despite the stimulus provided by this summer’s Olympic Games — the number has hovered around 7.9. The overall level of economic activity, real G.D.P., is still below where it was five years ago, too. Historically, it’s almost unimaginable for a major economy to be poorer than it was half a decade ago. (By comparison, the United States has a real G.D.P. that is around a half-trillion dollars more than it was in 2007.) Yet austerity’s advocates continue to argue, as Cameron has, that Britain’s economic stagnation shows that the government is still crowding out private-sector investment. This, they say, is proof that austerity is even more essential than was first realized. Once the debts have been paid off and the euro zone solves its political problems, the thinking goes, the British economy will bounce back quickly.


When I visited Posen this summer, he refused to publicly criticize a sitting administration’s policies, but every time the topic of austerity came up, he was unable to hide his frustration. Posen’s term ended in August, and his subsequent nondisclosure agreement expired last month. Now he wants to persuade everyone he can that Britain should abandon its austerity program. He says that he has a solution that would quickly return healthy economic growth. His critics say that his prescription would bring about another financial panic. But whether you think he’s right or wrong depends on what you make of the data.


Economics often appears to be an exercise in number-crunching, but it actually resembles storytelling more than mathematics. Before the members of the Monetary Policy Committee gather for their monthly meeting, they sit through a presentation from the Bank of England’s economic staff. The staff members take the most recent economic data — G.D.P. growth, the unemployment rate and more subtle details gathered from interviews with businesspeople throughout the country — and try to fashion it into a narrative. Does a sudden spike in new factory orders represent a fundamental shift, or is it just a preholiday blip? Do anecdotal reports of rising food prices herald a period of inflation, or is it the result of a cold snap? Which story feels truer?



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New Android botnet discovered across all major networks






A new Android spam botnet has been discovered across all major networks that sends thousands of text messages without a user’s permission, TheNextWeb reported. The threat, which is known at SpamSoldier, was detected on December 3rd by Lookout Security in cooperation with an unnamed carrier partner. The malware is said to spread through a collection of infected phones that send text messages, which usually advertise free versions of popular paid games like Grand Theft Auto and Angry Birds Space, to hundreds of users each day.


[More from BGR: Facebook’s Instagram monetization plan: License users’ photos without paying for them]






Once a user clicks on the link to download the game, his or her phone instead downloads the malicious app. When the app is downloaded, SpamSoilder removes its icon from the app drawer, installs a free version of the game in question and immediately starts sending spam messages.


[More from BGR: How not to fix Apple Maps]


The security firm notes that the threat isn’t widespread, however it has been spotted on all major carriers in the U.S. and has potential to do serious damage if something isn’t done soon to stop it.


This article was originally published by BGR


Wireless News Headlines – Yahoo! News





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Gossip Girl's Costume Designer Recalls His Favorite Fashion Moments




Style News Now





12/18/2012 at 10:30 AM ET



Gossip Girl FinaleGiovanni Rufino/The CW; FameFlynet


When asked about his favorite fashion moment in the series finale, Gossip Girl costume designer Eric Daman has two instant answers.


“Serena descending the staircase in her gilded Georges Chakra wedding gown is a moment to remember forever,” he tells PEOPLE. “And Chuck and Blair (in Elie Saab) finally in wedding blues.”


Throughout its six seasons, the show offered many major style memories, though Daman finds it hard to pick just a few standouts.



“Each episode, each character, each outfit were all significant to the series — I loved dressing them all,” he says. “You can’t play favorites when playing with such a beautiful cast — after six years they become your family.”


That sense of family is something Daman says he’ll miss having. “I’ll cherish the wonderful, fashionable, madcap moments we spent together trying on designer duds and playing dress-up,” he shares.


Those moments of fashion brilliance are something he’d always hoped for — but didn’t necessarily think the show would attain.


“The styles on Gossip Girl evolved as much as we’d hoped they would from the beginning, and so much more than we could have ever imagined,” he says. “We set out to be on trend, and inspire trends, but we did not — and could not — have expected Gossip Girl to become the worldwide fashion phenomenon it has become.”


That evolution was especially clear on the show’s leading ladies, Blake Lively‘s Serena and Leighton Meester‘s Blair. “With the success of the show spanning a full six seasons, it offered an incredible opportunity to develop the styles of the characters very fully, and over a long character arc for each,” he explains. “As obvious as the choices seemed to become, they also became more specific, and more exciting to discover. As [the characters] grew up and evolved, their style followed suit.”


So with the show coming to a close, does Daman have any regrets? Just one, he says: “My only regret is that it is over.” Tell us: Whose wedding dress did you love best? And are you going to miss the show?  


–Kate Hogan


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Experts: Kids are resilient in coping with trauma


WASHINGTON (AP) — They might not want to talk about the gunshots or the screams. But their toys might start getting into imaginary shootouts.


Last week's school shooting in Connecticut begs the question: What will be the psychological fallout for the children who survived?


For people of any age, regaining a sense of security after surviving violence can take a long time. They're at risk for lingering anxiety, depression, post-traumatic stress disorder.


But after the grief and fear fades, psychiatrists say most of Newtown's young survivors probably will cope without long-term emotional problems.


"Kids do tend to be highly resilient," said Dr. Matthew Biel, chief of child and adolescent psychiatry at MedStar Georgetown University Hospital.


And one way that younger children try to make sense of trauma is through play. Youngsters may pull out action figures or stuffed animals and re-enact what they witnessed, perhaps multiple times.


"That's the way they gain mastery over a situation that's overwhelming," Biel explained, saying it becomes a concern only if the child is clearly distressed while playing.


Nor is it unusual for children to chase each other playing cops-and-robbers, but now parents might see some also pretending they're dead, added Dr. Melissa Brymer of the UCLA-Duke National Center for Child Traumatic Stress.


Among the challenges will be spotting which children are struggling enough that they may need professional help.


Newtown's tragedy is particularly heart-wrenching because of what such young children grappled with — like the six first-graders who apparently had to run past their teacher's body to escape to safety.


There's little scientific research specifically on PTSD, post-traumatic stress disorder, in children exposed to a burst of violence, and even less to tell if a younger child will have a harder time healing than an older one.


Overall, scientists say studies of natural disasters and wars suggest most children eventually recover from traumatic experiences while a smaller proportion develop long-term disorders such as PTSD. Brymer says in her studies of school shootings, that fraction can range from 10 percent to a quarter of survivors, depending on what they actually experienced. A broader 2007 study found 13 percent of U.S. children exposed to different types of trauma reported some symptoms of PTSD, although less than 1 percent had enough for an official diagnosis.


Violence isn't all that rare in childhood. In many parts of the world — and in inner-city neighborhoods in the U.S., too — children witness it repeatedly. They don't become inured to it, Biel said, and more exposure means a greater chance of lasting psychological harm.


In Newtown, most at risk for longer-term problems are those who saw someone killed, said Dr. Carol North of the University of Texas Southwestern Medical Center, who has researched survivors of mass shootings.


Friday's shootings were mostly in two classrooms of Sandy Hook Elementary School, which has about 450 students through fourth-grade.


But those who weren't as close to the danger may be at extra risk, too, if this wasn't their first trauma or they already had problems such as anxiety disorders that increase their vulnerability, she said.


Right after a traumatic event, it's normal to have nightmares or trouble sleeping, to stick close to loved ones, and to be nervous or moody, Biel said.


To help, parents will have to follow their child's lead. Grilling a child about a traumatic experience isn't good, he stressed. Some children will ask a lot of questions, seeking reassurance, he said. Others will be quiet, thinking about the experience and maybe drawing or writing about it, or acting it out at playtime. Younger children may regress, becoming clingy or having tantrums.


Before second grade, their brains also are at a developmental stage some refer to as magical thinking, when it's difficult to distinguish reality and fantasy. Parents may have to help them understand that a friend who died isn't in pain or lonely but also isn't coming back, Brymer said.


When problem behaviors or signs of distress continue for several weeks, Brymer says it's time for an evaluation by a counselor or pediatrician.


Besides a supportive family, what helps? North advises getting children back into routines, together with their friends, and easing them back into a school setting. Studies of survivors of the Sept. 11 terrorist attacks found "the power of the support of the people who went through it with you is huge," she said.


Children as young as first-graders can benefit from cognitive-behavioral therapy, Georgetown's Biel said. They can calm themselves with breathing techniques. They also can learn to identify and label their feelings — anger, frustration, worry — and how to balance, say, a worried thought with a brave one.


Finally, avoid watching TV coverage of the shooting, as children may think it's happening all over again, Biel added. He found that children who watched the 9/11 clips of planes hitting the World Trade Center thought they were seeing dozens of separate attacks.


___


EDITOR'S NOTE — Lauran Neergaard covers health and medical issues for The Associated Press in Washington.


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Wall Street climbs on economy bets as it looks past "cliff"

NEW YORK (Reuters) - U.S. stocks rallied on strong volume on Tuesday, capping off the S&P 500's best two-day run in a month, on confidence that a deal would be struck in Washington to avoid painful spending cuts and tax hikes that could hurt the economy.


Banks, energy and technology - sectors that would benefit during economic expansion - led gains as investors remain confident that lawmakers will come to an agreement to avoid the so-called "fiscal cliff" deadline at the end of the year.


The PHLX oil services sector index <.osx> jumped 3.1 percent, with eight of its 15 components up 3 percent or more.


"The view is that the economy is getting better, and that is always good for energy demand," said Shawn Hackett, president at Hackett Financial Advisors in Boynton Beach, Florida.


Hackett said the United States would avoid "whatever the cliff means" for the economy, allowing investors to focus on growth.


President Barack Obama's most recent offer to Republicans in the ongoing budget talks makes concessions on taxes and social programs spending. House Speaker John Boehner said the offer is "not there yet," though he remains hopeful about an agreement. Senate Democrats, however, have expressed concern about cuts to Social Security.


Financial stocks shot higher, as traders bet on a greater demand for loans and a steepening of the yield curve. U.S. government debt sold off Tuesday, with the benchmark 10-year U.S. Treasury note's yield briefly hitting its highest since late October.


The S&P financial sector <.gspf> added 1.5 percent.


The Dow Jones industrial average <.dji> rose 115.57 points, or 0.87 percent, to 13,350.96 at the close. The S&P 500 <.spx> gained 16.43 points, or 1.15 percent, to 1,446.79. The Nasdaq Composite <.ixic> added 43.93 points, or 1.46 percent, to 3,054.53.


It was the S&P 500's first back-to-back gain of more than 1 percent since late July.


Stocks of smaller companies outperformed the broader market, with the Russell 2000 <.rut> up 1.5 percent.


Shares of firearm makers sank in the aftermath of a school shooting in Newtown, Connecticut, on Friday that killed 20 young children and six adults.


Smith and Wesson fell 10 percent to $7.79 on its largest-ever daily volume, though it was still up about 77 percent so far this year. Sturm Ruger and Co slid 7.7 percent Tuesday to $40.60.


Private equity firm Cerberus Capital Management said it would sell gunmaker Freedom Group, whose Bushmaster AR-15 rifle was used in the Connecticut massacre. Dick's Sporting Goods suspended the sale of certain semi-automatic rifles in its stores nationwide.


Technology shares rose, led by Apple , up 2.9 percent at $533.90 after losing nearly 13 percent in the last two weeks. The S&P Information Technology Index <.gspt> rose 1.7 percent.


Arbitron Inc surged 23.6 percent to $47.03 after Nielsen Holdings NV agreed to buy the media and marketing research firm in a deal worth $1.26 billion. Nielsen rose 4.4 percent to $30.92.


About 7.4 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, more than the daily average so far this year of about 6.5 billion shares.


On the NYSE, roughly 14 issues rose for every five that fell, while on the Nasdaq, advancers outnumbered decliners by a ratio of about 5 to 2.


(Reporting by Rodrigo Campos; Editing by Jan Paschal)



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Attackers in Pakistan Kill Anti-Polio Workers


Rizwan Tabassum/Agence France-Presse — Getty Images


A Pakistani mother mourned her daughter, who was killed on Tuesday in an attack on health workers participating in a national drive to eradicate polio from Pakistan.







ISLAMABAD, Pakistan — Five Pakistani women and a man were killed on Tuesday in separate attacks on health workers participating in a national drive to eradicate polio from Pakistan.








Akhtar Soomro/Reuters

The bodies of two female workers with an anti-polio drive lay in the morgue at Jinnah Hospital in Karachi on Tuesday.






Athar Hussain/Reuters

Family members mourned the death of Nasima Bibi, a female worker with an anti-polio drive campaign in Pakistan, who was shot by gunmen on Tuesday.






The attacks forced health officials to temporarily suspend a large polio vaccination drive in Karachi, the country’s most populous city, where the disease has been making a worrisome comeback in recent years.


Saghir Ahmed, the health minister for southern Sindh Province, said he had ordered the 24,000 aid workers taking part in the campaign in Karachi to immediately stop work. It was not clear when they would resume.


The shooting represented a brutal setback to polio immunization efforts in Pakistan, one of just three countries in the world where the disease remains endemic. Pakistan accounted for 198 new cases last year — the highest rate in the world, followed by Afghanistan and Nigeria.


There was no immediate claim of responsibility, but Taliban insurgents have repeatedly vowed to target anti-polio workers, accusing them of being spies.


In the tribal areas along the Afghan border, Taliban leaders have issued religious edicts declaring that the United States runs a spy network under the guise of vaccination programs.


That perception was strengthened after the American commando raid that killed Osama bin Laden in June 2011, when it emerged that the Central Intelligence Agency had paid a Pakistani doctor to run a vaccination program in Abbottabad, where Bin Laden was hiding, in a bid to obtain DNA evidence from his family.


Pakistani authorities arrested the doctor, Shakil Afridi, shortly after the American raid, and he has been sentenced to 33 years in prison.


Despite the negative perceptions, the government has pressed ahead with a large polio vaccination campaign, usually conducted in three-day spurts involving tens of thousands of health workers who administer medicine to children under 5.


The shootings on Tuesday came on the second day of the latest drive, which has now been called off in Karachi. After an attack on a United Nations doctor from Ghana in Karachi last July, officials were braced for some sort of militant resistance. But the extent and scale of the attacks Tuesday caught the government by surprise.


In the attacks in Karachi, three teams of health volunteers were targeted in poor neighborhoods: Landhi, Orangi and Baldia Town.


Two female aid workers were killed in an attack in Landhi, according to local news reports. In Orangi, unknown gunmen opened fire on a health team, killing one woman and a male volunteer. Another female worker was killed in nearby Baldia Town.


The Karachi neighborhoods where aid workers were targeted Tuesday are being used as safe havens by militants, who have escaped American drone strikes in North and South Waziristan tribal regions, according to police officials. Security forces regularly conduct search operations in these neighborhoods.


In the northwestern city of Peshawar, gunmen riding a motorcycle opened fire on two sisters who had volunteered to help administer polio drops, killing one.


The attacks on polio workers followed a bold Taliban assault on a major Pakistan Air Force base in Peshawar over the weekend that killed at least 15 people and a militant bomb attack in a nearby tribal village on Monday that killed another 19.


For Pakistan’s beleaguered progressives, the attack on female health workers was another sign of how the country’s extremist fringe would stoop to attack the vulnerable and minorities.


“Ahmadis, Shias, Hazaras, Christians, child activists, doctors, anti-polio workers — who’s next on the target list, Pakistan?” asked Mira Hashmi, a lecturer in film studies at the Lahore School of Economics, in a post on Twitter.


Zia ur-Rehman contributed reporting from Karachi



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Cannibalization concerns ‘overblown’ as half of iPad mini sales go to new buyers






It has been widely reported that Apple’s (AAPL) iPad mini is cannibalizing sales of the company’s full-sized iPad. According to a new survey, however, nearly half of all recent iPad mini buyers are new to the platform, AppleInsider reported. The data comes from Katy Huberty of Morgan Stanley, who said that while the smaller tablet is clearly cannibalizing some sales of the larger iPad, concerns are “overblown.” The analyst’s opinion echoes previously statements shared by Apple CEO Tim Cook, revealing that the company does not “worry about cannibalization of our own product,” adding that “it’s much better for us to do that than for somebody else to do it.” Huberty also notes that the iPad mini is a “key demand driver” and has accounted for 34% of planned iPad purchases.


[More from BGR: New BlackBerry 10 images show off home screen UI, notifications and key apps]






[More from BGR: Apple loses its shine]


The survey did find that the iPad 4 is attracting slightly more new users than the iPad mini, however, 56% compared to 47%. The analyst notes that these numbers indicate that the company’s cannibalization risk factor with the iPad mini is “manageable.” Apple’s tablet install base continues to grow faster than any other company and its retention rate of 81% is the strongest in the industry. Better yet, 36% of consumers who do not own a tablet have said they plan to buy an iPad in the future.


This article was originally published by BGR


Gadgets News Headlines – Yahoo! News





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Connecticut Shooting: First Funerals Are Held for Noah Pozner and Jack Pinto









12/17/2012 at 03:20 PM EST







Noah Pozner (left) and Jack Pinto


AP; Landov


Friends and family said goodbye on Monday to two of the 27 victims of the massacre at Sandy Hook Elementary school in Newtown, Conn.

Noah Pozner and Jack Pinto, both 6, were the first laid to rest.

"Today is extremely emotional," Noah's aunt, Victoria Haller, tells PEOPLE. "My sister-in-law has been pretty much a wreck, which you can imagine. It's the worst thing in the world to lose a child."

Pozner, a loving boy who was inseparable from his siblings, had his services at Abraham L. Green and Son Funeral Home in Farfield, Conn., with his burial at B'nai Israel Cemetery in Monroe, Conn.

The entrance to the funeral home was adorned with white balloons. A large oak tree across from the home was covered with a sign that says, "Our hearts are with you Noah."

Pozner's twin sister, Arielle, along with older sister Sophia, 8, both survived the shooting.

Pinto, known for his love of the New York Giants, had his services at Honan Funeral Home in Newtown, and his burial at Newtown Village Cemetery.

On Saturday, his favorite player – wide receiver Victor Cruz – dedicated his game to Pinto, writing, "Jack Pinto, My Hero" on one of his cleats, and "Jack Pinto This one is 4 U!" on his gloves.

Friday morning's massacre took the lives of 20 children – 12 girls and eight boys. The gunman, identified as 20-year-old Adam Lanza, took his own life. His mother was also found killed in a different location.

Sandy Hook was closed on Monday. Other schools in the area will open on Tuesday, and the district has reportedly made plans to send surviving Sandy Hook students to a school in a neighboring town, but there is no date set.

Other victims of the tragedy have funeral dates set for later this week.

Reporting by MARY GREEN

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Experts: No link between Asperger's, violence


NEW YORK (AP) — While an official has said that the 20-year-old gunman in the Connecticut school shooting had Asperger's syndrome, experts say there is no connection between the disorder and violence.


Asperger's is a mild form of autism often characterized by social awkwardness.


"There really is no clear association between Asperger's and violent behavior," said psychologist Elizabeth Laugeson, an assistant clinical professor at the University of California, Los Angeles.


Little is known about Adam Lanza, identified by police as the shooter in the Friday massacre at a Newtown, Conn., elementary school. He fatally shot his mother before going to the school and killing 20 young children, six adults and himself, authorities said.


A law enforcement official, speaking on condition of anonymity because the person was not authorized to discuss the unfolding investigation, said Lanza had been diagnosed with Asperger's.


High school classmates and others have described him as bright but painfully shy, anxious and a loner. Those kinds of symptoms are consistent with Asperger's, said psychologist Eric Butter of Nationwide Children's Hospital in Columbus, Ohio, who treats autism, including Asperger's, but has no knowledge of Lanza's case.


Research suggests people with autism do have a higher rate of aggressive behavior — outbursts, shoving or pushing or angry shouting — than the general population, he said.


"But we are not talking about the kind of planned and intentional type of violence we have seen at Newtown," he said in an email.


"These types of tragedies have occurred at the hands of individuals with many different types of personalities and psychological profiles," he added.


Autism is a developmental disorder that can range from mild to severe. Asperger's generally is thought of as a mild form. Both autism and Asperger's can be characterized by poor social skills, repetitive behavior or interests and problems communicating. Unlike classic autism, Asperger's does not typically involve delays in mental development or speech.


Experts say those with autism and related disorders are sometimes diagnosed with other mental health problems, such as depression, anxiety, bipolar disorder or obsessive-compulsive disorder.


"I think it's far more likely that what happened may have more to do with some other kind of mental health condition like depression or anxiety rather than Asperger's," Laugeson said.


She said those with Asperger's tend to focus on rules and be very law-abiding.


"There's something more to this," she said. "We just don't know what that is yet."


After much debate, the term Asperger's is being dropped from the diagnostic manual used by the nation's psychiatrists. In changes approved earlier this month, Asperger's will be incorporated under the umbrella term "autism spectrum disorder" for all the ranges of autism.


__


AP Writer Matt Apuzzo contributed to this report.


___


Online:


Asperger's information: http://1.usa.gov/3tGSp5


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Optimism about "cliff" boost market; financials lead

NEW YORK (Reuters) - The S&P 500 ended at its highest level in almost two months on Monday on rising hopes that negotiations over the "fiscal cliff" were making progress and that a deal could be reached in days.


After weeks of stalemate, President Barack Obama and Republican House Speaker John Boehner met at the White House on Monday, raising hopes that Washington will be able to head off steep tax hikes and spending cuts that threaten the economy.


All of the S&P 500's 10 sectors were higher, led by financials and other growth-oriented sectors. The S&P Financial Index <.gspf> gained 2.1 percent, while the S&P consumer discretionary sector <.gspd> was up 1.8 percent.


Investors worry the U.S. economy could slide into recession if the tax and spending changes are implemented.


Boehner has edged closer to Obama's position by proposing to extend lower tax rates for everyone who earns less than $1 million. Still, his position remains far from that of President Obama.


"Trumping everything right now are the fiscal cliff talks. It seems like progress is being made. I think it's getting to the nitty gritty," said Alan Lancz, president of Alan B. Lancz & Associates Inc. in Toledo, Ohio. "The bet right now is that something will come by the end of this week."


The Dow Jones industrial average <.dji> was up 100.38 points, or 0.76 percent, at 13,235.39. The Standard & Poor's 500 Index <.spx> was up 16.78 points, or 1.19 percent, at 1,430.36, its highest close since October 22. The Nasdaq Composite Index <.ixic> was up 39.27 points, or 1.32 percent, at 3,010.60.


The gains, which came on lighter-than-usual volume, ended a two-day losing streak on the S&P 500. The index also had its best daily percentage gain since November 23. Volume was roughly 6.2 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the year-to-date average daily closing volume of 6.4 billion.


In the financial sector, shares of Bank of America rose 4 percent to $11. American International Group Inc. shares rose 3 percent to $34.95 on plans to sell as much as $6.5 billion of AIA Group Ltd. Advancing stocks included those in the home construction sector <.djushb>, which rose 4.5 percent.


"People are looking for sectors to play, and I think Bank of America broke out of some long-standing price levels, and it got everything going in that sector," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.


Clearwire Corp agreed to sell the rest of the company to Sprint Nextel Corp for a slightly sweetened $2.2 billion offer just days after minority shareholders criticized the previous bid as too low. Clearwire tumbled 13.6 percent to $2.91, while Sprint was up 0.2 percent to $5.56.


Apple Inc shares edged up after recent losses, rising 1.8 percent to $518.83 even though two firms cut their price targets on the stock Monday.


The tech giant said it sold more than 2 million of its new iPhone 5 smartphones in China during the three days after its launch there on Friday, but the figures did not ease worries about stiffer competition. Apple shares have tumbled more than 25 percent in about three months.


Compuware Corp rose 12.9 percent to $10.76 after hedge fund Elliott Management offered to buy the business software maker for $2.3 billion and S&P Capital IQ raised the target price and moved it to "hold" from "strong sell.


(Editing by Kenneth Barry and Nick Zieminski)



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