Wall Street rises after Alcoa reports earnings

NEW YORK (Reuters) - U.S. stocks rose on Wednesday, rebounding from two days of losses, as investors turned their focus to the first prominent results of the earnings season.


Stocks had retreated at the start of the week from the S&P 500's highest point in five years, hit last Friday, on worries about possible earnings weakness.


Shares of Alcoa Inc were down 0.5 percent to $9.08 after early gains, following the company's earnings release after the bell on Tuesday. The largest U.S. aluminum producer said it expects global demand for aluminum to grow in 2013.


Herbalife Ltd stock rose 4.2 percent to $39.95 in its most active day of trading in the company's history after hedge fund manager Dan Loeb took a large stake in the nutritional supplements seller. Prominent short-seller Bill Ackman had previously accused the company of being a "pyramid scheme," which Herbalife has denied.


Traders have been cautious as the current quarter shaped up like the previous one, with companies recently lowering expectations, said James Dailey, portfolio manager of Team Asset Strategy Fund in Harrisburg, Pennsylvania. Lower expectations leave room for companies to surprise investors even if their results are not particularly strong.


"The big question and focus is on revenue, and Alcoa had better-than-expected revenue," which calmed the market a little, Dailey said.


Overall, corporate profits were expected to beat the previous quarter's meager 0.1 percent rise. Both earnings and revenues in the fourth quarter are expected to have grown by 1.9 percent, according to Thomson Reuters data.


The Dow Jones industrial average <.dji> gained 61.66 points, or 0.46 percent, to 13,390.51. The Standard & Poor's 500 Index <.spx> rose 3.87 points, or 0.27 percent, to 1,461.02. The Nasdaq Composite Index <.ixic> gained 14.00 points, or 0.45 percent, to 3,105.81.


Facebook Inc shares rose above $30 for the first time since July 2012, trading up 5.3 percent at $30.59. Facebook, which has been tight-lipped about its plans after its botched IPO in May, invited the media to its headquarters next week.


Clearwire Corp shares jumped 7.2 percent to $3.13 after Dish Network bid $2.28 billion for the company, beating out a previous Sprint offer and setting the stage for a takeover battle for the wireless service provider that owns crucial mobile spectrum.


Apollo Group Inc slid after heavier early losses, a day after it reported lower student sign-ups for the third straight quarter and cut its operating profit outlook for 2013. Apollo's shares were last off 7.8 percent at $19.32.


Volume was below the 2012 average of 6.42 billion shares traded per day, as 6.10 billion were traded on the New York Stock Exchange, NYSE MKT and Nasdaq.


Advancing stocks outnumbered declining ones on the NYSE by 2,014 to 963, while on the Nasdaq advancers beat decliners 1,603 to 859.


(Reporting by Gabriel Debenedetti; additional reporting by Angela Moon; Editing by Nick Zieminski)



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The Lede Blog: Saudi Arabia Executes Sri Lankan Maid

A Sri Lankan woman who was employed as a domestic worker in Saudi Arabia was beheaded by the Saudi authorities on Wednesday after she was accused of murdering an infant in her charge and then sentenced to death in a case that the Sri Lankan government and human rights groups said was flawed.

The Saudi Interior Ministry announced in a brief statement released by the official Saudi news agency that the woman, Rizana Nafeek, had been executed. It said she strangled the infant because of differences between her and the baby’s mother. She was detained and interrogated and was sentenced after trial, the Saudi ministry reported.

Sri Lanka’s Ministry of External Affairs said Wednesday in a statement on its Web site that Ms. Nafeek had been beheaded. She had been on the job for only six weeks before the accusation was made against her in 2005.

Sri Lanka’s president, Mahinda Rajapaksa, had made several appeals to the Saudi government to halt the execution. Sri Lanka also sent ministers to the kingdom on similar appeals and arranged for the woman’s parents to visit their daughter in prison in 2008 and 2011, the Sri Lanka statement said.

“President Rajapaksa and the Government of Sri Lanka deplore the execution of Miss Rizana Nafeek despite all efforts at the highest level of the government and the outcry of the people locally and internationally over the death sentence of a juvenile housemaid,” it said.

Ms. Nafeek’s case has been shrouded in controversy. Human Rights Watch, which along with other rights organizations had urged the Saudi government to halt the execution, said that she should have been treated as a minor in Saudi Arabia’s judicial system, and it also questioned whether she had been given a fair trial:

Though she was arrested in 2005, she did not have access to legal counsel until after a court in Dawadmi sentenced her to death in 2007. Nafeek has also retracted a confession that she said was made under duress, and says that the baby died in a choking accident while drinking from a bottle.

Human Rights Watch said that Ms. Nafeek’s birth certificate showed that she was 17 at the time of her arrest, but that a recruitment agency in Sri Lanka had altered the birth date on her passport to present her as 23 so she could migrate for work. Her birth certificate says she was born in 1988, said Nisha Varia, senior women’s rights researcher at Human Rights Watch, said in an interview, adding that she has a scanned image of the document.

The High Court in Colombo, Sri Lanka, sentenced two recruitment agents to two years in prison for falsifying her travel documents, she said.

In a statement that was released this week and updated on Wednesday when the sentence was carried out, Human Rights Watch said that international law prohibits the death penalty for crimes committed before the age of 18.

“Saudi Arabia is one of just three countries that executes people for crimes they committed as children,” Ms. Varia said. The others are Iran and Yemen, she said.

Amnesty International said in a statement that as a state party to the Convention on the Rights of the Child, Saudi Arabia is prohibited from imposing the death penalty on people under the age of 18 at the time of the alleged offense, and that if there was doubt, the courts were required to treat the suspect as a juvenile until the prosecution can confirm the age.

After the sentence was handed down in 2007, Amnesty International and Human Rights Watch had called on the Saudi authorities for clemency, but the sentence was appealed and then later ratified by the country’s Supreme Court. King Abdullah signed off on it this week, Amnesty International said.

According to information gathered by Amnesty International, Ms. Nafeek said she was not allowed to present her birth certificate or other evidence of her age to the Court of First Instance in 2007. Amnesty International said it also appeared that the man who translated her statement to the court might not have been able adequately to go between Tamil and Arabic.

She also had no access to lawyers either during her pretrial interrogation or at her trial in 2007. Amnesty International said that although she initially confessed to the baby’s murder during her interrogation, “she later retracted and denied it was true, saying she had been forced to make the ‘confession’ under duress following a physical assault.”

Ms. Varia said she had spoken on Wednesday to the Sri Lankan ambassador in Riyadh, who told her that Ms. Nafeek was unaware she was to be executed. Ms. Nafeek, a Muslim, is from an impoverished family. Her father is a woodcutter. “In cases where girls are migrating so young it shows how desperate families are for income,” she said.

The news of the execution came on the same day that the United Nations’ International Labor Organization issued a report saying that of the 52 million domestic workers worldwide, only 10 percent are covered by labor laws to the same extent as other workers, and more than one-quarter are completely excluded from national labor legislation. It called on countries to extend protections to such workers.

Saudi Arabia in particular was not keeping up with the international trend to improve protections for domestic workers, Ms. Varia said.


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Google offers New York City neighborhood free WiFi






(Reuters) – Google Inc and a New York redevelopment organization are providing a Manhattan neighborhood with free public WiFi Internet access, making it the largest area of coverage in New York City.


The search giant and the non-profit Chelsea Improvement Co are making Internet access available outdoors in Chelsea, which is home to Google’s New York offices and several technology start-ups.






The neighborhood is also home to many students, as well as residents of one of the city’s public housing developments.


Google does not plan to extend the program, a company spokesman said on Tuesday.


The company also provides free Internet access to the city of Mountain View, California, where its main campus is located.


New York City Mayor Michael Bloomberg and U.S. Senator Charles Schumer helped unveil the initiative.


(Reporting by Jennifer Saba in New York; Editing by Dan Grebler)


Tech News Headlines – Yahoo! News





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Man Wins $1 Million Lotto - Then Dies of Cyanide Poisoning: Police















01/08/2013 at 04:45 PM EST







Urooj Khan


Illinois Lottery/EPA/Landov


Urooj Khan won a million dollar lottery, but he lost his life the day after collecting his winnings. Now, the authorities suspect that the Chicago man was the victim of foul play.

Pathologists initially believed Khan died of natural causes, but have since changed their minds after a relative asked them to re-examine his death and they detected lethal amounts of cyanide in his blood.

"We are investigating the incident as a murder and are working closely with the medical examiner," Chicago Police spokeswoman Melissa Stratton tells PEOPLE.

Khan, a 46-year-old hardworking entrepreneur from India, bought the two lottery scratch-off tickets at a convenience store near his home last June.

Moments after scratching off the second ticket, he reportedly jumped into the air and screamed, "I hit a million!" then handed the clerk a hundred-dollar bill out of gratitude.

On July 19, Khan cashed in his ticket and received a check (minus taxes) for $425,000, some of which he planned on donating to a local children's hospital.

The next day he was back at work at his string of dry cleaning businesses. But that evening, shortly after going to bed, he awoke shrieking in agony.

Shabana Ansari, 32, his wife of 12 years, telephoned paramedics and he was rushed to nearby St. Francis Hospital where doctors pronounced him dead several hours later.

Khan's blood sample showed no signs of carbon monoxide, opiates or alcohol. And because there were no visible signs of trauma to his body and no evidence of foul play, pathologists didn't believe an autopsy needed to be performed.

His death was attributed to hardening of the arteries and Khan was eventually buried at a local cemetery.

But before a week had passed, an unidentified relative telephoned the Cook County Medical Examiner's office, saying that he suspected foul play. A morgue worker took another look at Khan's blood sample and this time discovered lethal levels of cyanide.

"If a family member has a concern that seems valid, we take those seriously," Cook County Medical Examiner Stephen Cina tells the Chicago Tribune. "We can't [ordinarily] look for every toxin under the sun like a CSI episode."

Homicide detectives are currently piecing together Khan's final days and deciding whether or not to exhume his body.

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Report: Death rates from cancer still inching down


WASHINGTON (AP) — Death rates from cancer are continuing to inch down, researchers reported Monday.


Now the question is how to hold onto those gains, and do even better, even as the population gets older and fatter, both risks for developing cancer.


"There has been clear progress," said Dr. Otis Brawley of the American Cancer Society, which compiled the annual cancer report with government and cancer advocacy groups.


But bad diets, lack of physical activity and obesity together wield "incredible forces against this decline in mortality," Brawley said. He warned that over the next decade, that trio could surpass tobacco as the leading cause of cancer in the U.S.


Overall, deaths from cancer began slowly dropping in the 1990s, and Monday's report shows the trend holding. Among men, cancer death rates dropped by 1.8 percent a year between 2000 and 2009, and by 1.4 percent a year among women. The drops are thanks mostly to gains against some of the leading types — lung, colorectal, breast and prostate cancers — because of treatment advances and better screening.


The news isn't all good. Deaths still are rising for certain cancer types including liver, pancreatic and, among men, melanoma, the most serious kind of skin cancer.


Preventing cancer is better than treating it, but when it comes to new cases of cancer, the picture is more complicated.


Cancer incidence is dropping slightly among men, by just over half a percent a year, said the report published by the Journal of the National Cancer Institute. Prostate, lung and colorectal cancers all saw declines.


But for women, earlier drops have leveled off, the report found. That may be due in part to breast cancer. There were decreases in new breast cancer cases about a decade ago, as many women quit using hormone therapy after menopause. Since then, overall breast cancer incidence has plateaued, and rates have increased among black women.


Another problem area: Oral and anal cancers caused by HPV, the sexually transmitted human papillomavirus, are on the rise among both genders. HPV is better known for causing cervical cancer, and a protective vaccine is available. Government figures show just 32 percent of teen girls have received all three doses, fewer than in Canada, Britain and Australia. The vaccine was recommended for U.S. boys about a year ago.


Among children, overall cancer death rates are dropping by 1.8 percent a year, but incidence is continuing to increase by just over half a percent a year. Brawley said it's not clear why.


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Wall Street slips as earnings season gets under way

NEW YORK (Reuters) - Stocks fell on Tuesday, retreating from last week's rally on the "fiscal cliff" deal in Washington, as companies started to report results for the fourth quarter.


After a 4.3 percent jump in the two sessions around the close of the fiscal cliff negotiations, the S&P has declined a bit, with investors finding few catalysts to extend the rally that took the benchmark to five-year highs.


"We had a brief respite, courtesy of what happened on the fiscal cliff deal and the flip of the calendar with new money coming into the market," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.


Shares of AT&T Inc dropped 1.7 percent to $34.35, making it one of the biggest drags on the S&P 500, after the company said it sold more than 10 million smartphones in the quarter.


This figure beat the same quarter in 2011, but also means increased costs for the wireless service provider. Providers like AT&T pay hefty subsidies to handset makers so that they can offer discounts to customers who commit to two-year contracts.


Fourth-quarter profits are expected to beat the previous quarter's lackluster results, but analyst estimates are down sharply from October. Quarterly earnings are expected to grow by 2.7 percent, according to Thomson Reuters data. Dow component Alcoa, the largest U.S. aluminum producer, reported results after the closing bell.


The Dow Jones industrial average <.dji> dropped 55.44 points, or 0.41 percent, to 13,328.85. The Standard & Poor's 500 Index <.spx> fell 4.74 points, or 0.32 percent, to 1,457.15. The Nasdaq Composite Index <.ixic> lost 7.01 points, or 0.23 percent, to 3,091.81.


"The stark reality of uncertainty with regard to earnings, plus the negotiations on the debt ceiling, are there and that doesn't give investors a lot of reason to take bets on the long side," Hellwig said.


With AT&T's fall, the S&P telecom services index <.gspl> was the worst performer of the 10 major S&P sectors, down 2.7 percent.


Sears Holdings shares dropped 6.4 percent to $40.16 a day after the company said Chairman Edward Lampert would take over as CEO from Louis D'Ambrosio, who is stepping down due to a family member's health issue. The U.S. retailer also reported a 1.8 percent decline in quarter-to-date sales at stores open at least a year.


Markets went lower as some of the first reported earnings were weak.


"It doesn't seem to be bouncing back, it might stay here or sell off a little further," said Stephen Carl, head of U.S. equity trading at The Williams Capital Group in New York.


Shares of restaurant-chain operator Yum Brands Inc fell 4.2 percent to $65.04 a day after the KFC parent warned sales in China, its largest market, shrank more than expected in the fourth quarter.


GameStop was one of the worst performers on the S&P 500 as shares slumped 6.3 percent to $23.19 after the video game retailer reported low customer traffic for the holiday season and cut its guidance.


Shares of Monsanto Co gained 2.5 percent to $98.42 after reaching a more than four-year high at $99.99. The world's largest seed company raised its earnings outlook for fiscal year 2013 and posted strong first-quarter results.


Volume was below the 2012 average of 6.42 billion shares traded per day, as 6.19 billion were traded on the New York Stock Exchange, NYSE MKT and Nasdaq.


Declining stocks outnumbered advancing ones on the NYSE by 1,495 to 1,458, while on the Nasdaq decliners beat advancers 1,305 to 1,158.


(Reporting by Gabriel Debenedetti; Editing by Kenneth Barry and Nick Zieminski)



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American Delegation Arrives in North Korea on Controversial Private Trip


David Guttenfelder/Associated Press


Eric Schmidt, Google's executive chairman, arrived in Pyongyang on Monday.







SEOUL, South Korea — Bill Richardson, the former governor of New Mexico, led a private delegation including Eric Schmidt, Google’s executive chairman, to North Korea on Monday, a controversial trip to a country that is among the most hostile to the Internet.








Kim Kwang Hyon/Associated Press

Bill Richardson with journalists on Monday after arriving in Pyongyang, North Korea. Mr. Richardson, who has visited the North several times, called his trip a private humanitarian mission.






Mr. Richardson, who has visited North Korea several times, called his four-day trip a private humanitarian mission and said he would try to meet with Kenneth Bae, a 44-year-old South Korean-born American citizen who was arrested on charges of “hostile acts” against North Korea after entering the country as a tourist in early November.


“I heard from his son who lives in Washington State, who asked me to bring him back,” Mr. Richardson said in Beijing before boarding a plane bound for Pyongyang. “I doubt we can do it on this trip.”


In a one-sentence dispatch, the North’s state-run Korean Central News Agency confirmed the American group’s arrival in Pyongyang, calling it “a Google delegation.”


Mr. Richardson said his delegation planned to meet with North Korean political, economic and military leaders, and to visit universities.


Mr. Schmidt and Google have kept quiet about why Mr. Schmidt joined the trip, which the State Department advised against, calling the visit unhelpful. Mr. Richardson said Monday that Mr. Schmidt was “interested in some of the economic issues there, the social media aspect,” but did not elaborate. Mr. Schmidt is a staunch proponent of Internet connectivity and openness.


Except for a tiny portion of its elite, North Korea’s population is blocked from the Internet. Under its new leader, Kim Jong-un, the country has emphasized science and technology but has also vowed to intensify its war against the infiltration of outside information in the isolated country, which it sees as a potential threat to its totalitarian grip on power.


Although it is engaged in a standoff with the United States over its nuclear weapons and missile programs and habitually criticizes American foreign policy as “imperial,” North Korea welcomes high-profile American visits to Pyongyang, billing them as signs of respect for its leadership. It runs a special museum for gifts that foreign dignitaries have brought for its leaders.


Washington has never established diplomatic ties with North Korea, and the two countries remain technically at war after the 1950-53 Korean War ended in a truce.


But Mr. Richardson’s trip comes at a particularly delicate time for Washington. In the past weeks, it has been trying to muster international support to penalize North Korea for its launching last month of a long-range rocket, which the United States condemned as a violation of United Nations Security Council resolutions banning the country from testing intercontinental ballistic missile technology.


North Korea has often required visits by high-profile Americans, including former Presidents Jimmy Carter and Bill Clinton, before releasing American citizens held there on criminal charges. Mr. Richardson, who is also a former ambassador to the United Nations, traveled to Pyongyang in 1996 to negotiate the release of Evan Hunziker, who was held for three months on charges of spying after swimming across the river border between China and North Korea.


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Mark Zuckerberg faces fine in Germany over Facebook privacy violations









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Aurora Shooting: Officer Emotionally Recalls Slipping on Bloody Floor















01/07/2013 at 04:10 PM EST







James Holmes


University of CO/Splash News Online


As a body armor-clad James Holmes calmly told police about the explosives in his apartment, other officers raced to save victims of the movie-theater massacre, the first witnesses testified Monday in Holmes's preliminary hearing.

Officer Justin Grizzle choked up on the stand recalling slipping on the bloody floor as he encountered "several bodies throughout the theater laying motionless." He testified that, as he drove six victims to the hospital, "there was so much blood I could hear it sloshing around in the back of my car."

Among the victims of the Aurora, Colo., shooting he transported was Caleb Medley, a stand-up comedian who was shot in the head and is the last victim still hospitalized. Grizzle said Medley made a "god-awful" gurgling sound as he tried to breathe.

"I shouted, 'Don’t f–––ing die on me,'" Grizzle testified.

The first witness, Officer Jason Oviatt, testified that Holmes, a 25-year-old former neuroscience student, told them explosives in his apartment would go off if they were tripped.

"He was very relaxed," Oviatt testified. "It was like there weren't normal emotional responses."

The hearing, in Centennial, Colo., is to determine if there is sufficient evidence against Holmes on the 166 criminal charges in the July 20 attack, which killed 12 people and injured at least 70.

Some of the survivors are expected to testify during the week-long proceeding. Before this week, authorities had avoided discussing details and evidence about the highly publicized attack.

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Organ donations fall in Germany after scandal


BERLIN (AP) — Organ donations have dropped sharply in Germany following a scandal over alleged corruption at several transplant clinics.


The German Foundation for Organ Transplantation says the number of organs donated fell almost 13 percent to 3,917 last year, the lowest figure in a decade.


Several German clinics are being investigated over allegations that doctors manipulated waiting lists to help some patients appear sicker than they were and so receive transplants sooner.


The foundation said Monday that the scandal had "massively shaken" the public's faith in the transplant system.


Some 12,000 people in Germany require organ transplants each year.


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