Wall Street dips on profit taking, Friday data eyed

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NEW YORK (Reuters) - Stocks edged lower on Thursday as investors took profit after a mixed bag of economic data, while stellar earnings from Qualcomm helped buoy the Nasdaq.


Even with the retreat, the S&P 500 is on track to post its best month since October 2011 and its best start to a year since 1997.


Investors are expecting a pullback in equities after recent gains, though they have bought on dips over the past four weeks, analysts said. The largest daily decline on the S&P 500 so far in 2013 was Thursday's 0.39 percent drop, after data showed the economy contracted in the last quarter of 2012.


"This is a highly rotational market," said Janelle Nelson, portfolio analyst at RBC Wealth Management in Minneapolis, noting how investors dive into beaten-down sectors on the smallest encouraging news.


Job market data released earlier on Thursday showed mildly positive signs for a still-fragile economy, with jobless claims slightly higher and incomes growing at the best pace since 2004.


Those reports come ahead of Friday's payrolls report, which is expected to show employers added 160,000 jobs in January after an increase of 155,000 in December. Friday will also bring reports on consumer confidence, U.S. manufacturing, construction spending and car sales.


"The market's lack of movement is due in part to the large number of economic releases coming out tomorrow," said Nelson.


Qualcomm Inc gained 4.6 percent to $66.43 as the top boost to the Nasdaq Composite after the world's leading supplier of chips for cellphones beat analysts' expectations for quarterly profit and revenue, and raised its targets for the year.


Facebook Inc lost 2.5 percent to $30.47, a day after the social network company said it doubled its mobile advertising revenue in the fourth quarter. However, growth trailed some of Wall Street's most aggressive estimates.


The Dow Jones industrial average <.dji> fell 34.71 points or 0.25 percent, to 13,875.71; the S&P 500 <.spx> lost 4.04 points or 0.27 percent, to 1,497.92 and the Nasdaq Composite <.ixic> dropped 1.74 points or 0.06 percent, to 3,140.57.


The S&P 500 has advanced 5 percent in January after legislators in Washington temporarily sidestepped a "fiscal cliff" of automatic tax increases and spending cuts that could have derailed the economic recovery, and in the wake of better-than-expected corporate earnings.


United Parcel Service Inc lost 2 percent to $79.63 after reporting fourth-quarter earnings that were below analysts' estimates on Thursday and forecasting weaker-than-expected profit for 2013.


Kirby Corp added 6.6 percent to $70.87 and Ryder Systems Inc climbed 2.9 percent to $55.81 after posting quarterly results.


Thomson Reuters data through Thursday morning shows that of the 231 companies in the S&P 500 that have reported earnings this season, 69.3 percent have exceeded expectations, a higher proportion than over the past four quarters and above the average since 1994.


Overall, S&P 500 fourth-quarter earnings are forecast to have risen 3.7 percent. That's above a 1.9 percent forecast at the start of the earnings season, but well below a 9.9 percent profit growth forecast on October 1, the data showed.


WMS Industries Inc surged 52.6 percent to $24.98 after the company agreed to be acquired by Scientific Games Corp for $26 per share in cash. Scientific Games jumped 11.9 percent to $9.99.


(Additional reporting by Chuck Mikolajczak; Editing by Bernadette Baum)



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49ers' Culliver apologizes for anti-gay remarks

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NEW ORLEANS (AP) — San Francisco 49ers cornerback Chris Culliver apologized Thursday for anti-gay comments he made to a comedian during Super Bowl media day, saying "that's not what I feel in my heart."


"I'm sorry if I offended anyone. They were very ugly comments," Culliver said during an hour-long media session. "Hopefully I learn and grow from this experience and this situation."


He said he would welcome a gay teammate to the 49ers, a reversal of his remarks to Artie Lange two days earlier during an interview at the Superdome.


"I treat everyone equal," Culliver said. "That's not how I feel."


He added that he realized his comments were especially offensive to many people in San Francisco and the Bay Area, which is home to a large gay community.


"I love San Francisco," Culliver said.


During the interview with Lange, Culliver responded to questions by saying he wouldn't welcome a gay player in the locker room. He also said the 49ers didn't have any gay players, and if they did those players should leave.


San Francisco coach Jim Harbaugh met privately with Culliver to discuss the remarks.


"I reject what he said," Harbaugh said. "That's not something that reflects the way the organization feels, the way the rest of the players feel."


The coach would not discuss if Culliver would face discipline from the team, such as a fine or loss of playing time.


"He pledged to grow from it," Harbaugh said.


The interview began with Lange asking Culliver about his sexual plans with women during Super Bowl week. Lange followed up with a question about whether Culliver would consider pursuing a gay man.


"I don't do the gay guys, man. I don't do that," Culliver said during the one-minute taped interview. "Ain't got no gay people on the team. They gotta get up outta here if they do. Can't be with that sweet stuff."


Lange asked Culliver to reiterate his thoughts, to which the player said, "It's true." He added he wouldn't welcome a gay teammate — no matter how talented.


"Nah. Can't be ... in the locker room, nah," he said. "You've gotta come out 10 years later after that."


The 24-year-old Culliver, a third-round draft pick in 2011 out of South Carolina, made 47 tackles with two interceptions and a forced fumble this season while starting six games for the NFC champion Niners (13-4-1).


He had his first career postseason interception in San Francisco's 28-24 win at Atlanta for the NFC title.


The 49ers participate in the NFL's "It Gets Better" anti-bullying campaign. Three organizations working for LGBT inclusion in sports — Athlete Ally, You Can Play, and GLAAD — reacted to Culliver's remarks and later acknowledged his apology.


"Chris Culliver's comments were disrespectful, discriminatory and dangerous, particularly for the young people who look up to him," said Athlete Ally Executive Director Hudson Taylor. "His words underscore the importance of the athlete ally movement and the key role that professional athletes play in shaping an athletic climate that affirms and includes gay and lesbian players."


Calling Lange's questions "real disrespectful," Culliver said he realized he was speaking to a comedian and not a journalist.


"That was pretty much in a joking manner," the player said. "It's nothing about how I feel."


___


Follow Paul Newberry on Twitter at www.twitter.com/pnewberry1963


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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Fear and loathing in Egypt's Port Said

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Behind the mask


Scales of justice


Moment of truth


Fans celebrate


Armed and ready


Rally at the club


Portrait of the dead


ACAB


Down with Morsi


Army in control


Port Said women protest


Al Masry ultras


The sound of machine guns


Aftermath


Protest


Shots fired


Empty stands


Harrowing reminder





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STORY HIGHLIGHTS


  • Chaos erupted in Egypt after 21 people were sentenced to death following a football riot

  • More than 70 people died after match in Port Said between local club Al Masry and Al Ahly

  • Egyptian league was suspended and has yet to restart due to threats of further violence

  • Verdicts for 52 other defendants who were arrested after riot is expected March 9




(CNN) -- The faces of more than 70 young men and boys bore down on the crowd of thousands outside Al Ahly's training complex in Cairo.


As many as 15,000 members of the Ahlawy, the organized ultras fan group of Egypt's most popular soccer club, had gathered here early for the news they, and the country, had been waiting almost a year to hear.


At 10 a.m. a judge was to deliver a verdict on one of the darkest moments in the history of the game.


It happened on February 1, 2012, when more than 70 -- those young men and boys whose faces now appear on a billboard high above the entrance of the club -- lost their lives after a match in the Mediterranean city of Port Said, against local club Al Masry.


Most of the dead were crushed when the Al Masry fans stormed the pitch.








The players sprinted for their lives, finding sanctuary in the dressing room. And then the floodlights went out.


When the lights came back on 10 minutes later, the dead lay piled in a tunnel, in front of a locked, metal gate that had prevented escape before it collapsed under the weight of bodies.


Direct action


Seventy-three people were arrested, many accused of murder. They were mostly Al Masry fans, but included several members of the security forces.


The man allegedly responsible for cutting the power to the lights was also arrested. The Ahlawy suspected that a hidden hand was at work.


There were conspiracy theories, many asked questions: was this just a football rivalry gone very wrong? Or did police allow the violence as payback against the ultras for their part in the revolution?


Read: Clashes erupt after Egypt court sentences


The Ahlawy had played a crucial role in the revolution. They were an organized group of tens of the thousands of young men willing to fight the police -- as they had both inside and out of Egypt's soccer stadiums for the previous four years -- to make their voices heard.


The authorities denied any collusion. It was a tragic accident, they said. Hooliganism and ineptitude, no more, no less, no hidden hand.


But many of the Ahlawy fans were not convinced. The Egyptian soccer league was canceled and the Ahlawy waged a successful direct action campaign to prevent its restart until justice had been served.


The young men waited for the verdict on Saturday. Several had come armed, in anticipation of a further postponement or, worst still, a not guilty verdict. Some carried clubs, others homemade pistols and double-barreled sawn-off shotguns.


Tear gas


At 10 a.m. the judge rose on national television and delivered his verdict. Twenty-one of the accused were sentenced to death. The verdicts for the remaining defendants are expected March 9.


The news swept through the crowd, reducing those in its path to tears of joy; teenagers who had lost friends, mothers who had lost sons, wives who had lost husbands.











Scores dead in Egypt soccer riot














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"It's a very good decision by the court," said Mihai, a member of the Ahlawy who had come to hear the verdict. As with all the ultras, he declined to give his last name.


The guns that had been brought in anticipation of violence were fired into the sky in celebration.


One fan fired an automatic pistol until it jammed. He inspected the piece of failing, unfamiliar equipment. Unable to fix it, he tucked it into his belt and jumped into the sea of celebrating men.


"We hope it will be a perfect ending for this story. We have been waiting for this for so long. For 21 to get executed is a very good decision. So now we wait for the police decision. For sure it wasn't just them that made this," Mihai said.


Back in February, with the raw memories of Port Said just a few weeks old, the Ahlawy had demanded that those responsible should be put to death.


With the court verdict, they received their wish. Justice, they believed, had been served. At least partially.


"The police will be (put to) trial on March 9," said Mohamed, a founding member of the Ahlawy.


The previous night -- on the Egyptian revolution's anniversary -- Cairo was blanketed in tear gas as protesters roamed the streets surrounding Tahrir Square, venting their anger at President Mohamed Morsy and what they see as a lack of any real reforms.


Many, including the Ahlawy, expected further confrontations after the verdict.


But as the crowd moved inside the complex, holding a rally on the club's main soccer pitch, it became clear that no fighting would take place that day.


"I feel satisfied that some of those who committed what we suffered a year ago are going to face what they deserve," said Ahmed, another founding member of the Ahlawy who believed that the right decision had been made.


"It's a strong verdict but they don't deserve less than a strong verdict. Nobody ever wants to see someone dying but when someone kills he deserves a death sentence. He deserves that his life is taken. I don't see a way the police can get away with this."


Port Said ignited


Not everyone was happy, especially those who saw the verdict as a potential springboard to challenge Morsy, whom many of the Ahlawy view as no different from Hosni Mubarak, the former dictator who ruled Egypt for almost 30 years.


"They are giving us something of a painkiller to take out the anger from the young lads -- for me it is not enough," said Hassan, an Ahly fan standing on the training ground pitch.









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"All the other political movements and parties were looking at what was going to happen today. Everyone had their hopes for the ultras and now they have given us this painkiller and it has lost its momentum of something really happening against the new regime," he added.


But what had -- if only temporarily -- calmed the Ahlawy, it ignited Port Said.


The verdicts were greeted with astonishment, disbelief, and anger by Al Masry's fans and the families of the 73 accused who had gathered outside the prison in Port Said where the suspects were held.


Like the Ahlawy supporters in Cairo, they too had come prepared. Two policemen were shot dead as the relatives tried to storm the prison. The police fired back. At least 30 people were killed in clashes. Among them was a former Al Masry player.


President Morsy addressed the nation and announced a 30-day curfew, from 9 p.m. until 6 a.m. in the cities worst effected by the violence.


A few hours before the first curfew was due to fall, a storm rolled into Port Said. The streets were empty, the skies dark and pregnant with rain as 9 p.m. approached.


The only sound was the faint, periodic burst of gunfire. It emanated from near the Al Arab police station by the sea.


Smoldering barricades


On approaching it, the dead streets suddenly came alive, as if the entire energy of the city had been focused on one point. Barricades made from burning tires separated the police from groups of young men, exchanging rocks for gunfire.


The clashes had followed the funeral of more protesters, killed the day after the violence outside the prison.


"There are some injuries here," a member of the Red Crescent said as he sheltered from the gunfire in a side street. Ambulances flew by, their sirens blaring.


"We've seen gun bullets from the government. In four days we have seen more than 450 (injured)."


The prospects of a hastily arranged march to defy Morsy's curfew, looked bleak.


But at 8.30 p.m. a crowd of thousands gathered near the same spot the Red Crescent had been waiting to ferry the injured to hospital. They marched through the smoldering barricades towards where the gunfire had previously come from.


Now the army, not the police, was in charge.


Armored personnel carriers and armed troops were stationed on street corners and outside important military and civilian buildings.


At its core were the fans of Al Masry ultras group the Green Eagles. But they were by no means alone. The marchers had come from all sections of Port Said. Several hundred women marched together, denouncing Morsy and Cairo.


The curfew came and went, the crowd mocking its passing. "It's 9 o'clock!" they chanted as they passed the stationed troops.


But there was no animosity towards the army. The police was the enemy. Protesters took it in turns to hug and kiss the young soldiers.


Few would readily admit to being Al Masry fans, nor say whether they were there on that fateful night almost a year ago that set in motion this chain of deadly events.


Vendetta


What they would say is that they believed a miscarriage of justice had taken place, that Morsy had sacrificed Port Said to prevent chaos in Cairo, that traditional antipathy towards Port Said was at play.


"People are truly sure that these people (the 21 sentenced to death) didn't kill anyone. We didn't do it and they (the Ahlawy) don't believe we didn't do this," said Tariq Youssef, a 32-year-old accountant who was on the march with a friend.


"Al Masry will not be back for five years. I'm a big Masry fan. But I can't go anywhere. All the supporters for the big teams in Cairo or anywhere believe that Al Masry supporters did this."


For Tariq, admitting to being an Al Masry supporter outside of Port Said was impossible.


"They say, 'You killed them the Ahly supporters. You are like a terrorist.' Nobody believes us we didn't do anything here. There will be no football in the next five years."


As the march moved back towards the place it had started, machine gun fire rang out once again.


This time it was all around the march, front and back. The crowd scattered. A protester had been shot dead at the back of the march, next to the Al Arab police station.


"In three days we have lost 21 people, judged to be executed, and also about 39 murdered and many injured so there is no family which have not lost a friend, a colleague, a neighbor.


"You can consider this a sort of vendetta between the people and the police," said Muhammad el Agiery, an English tutor who had stayed until the end.


"People are going to stay out all of the night, every day for a month. They reject and refuse the curfew imposed by Morsy," he added.


The next morning the storm was gone and the sun was shining. But the cycle of violence continues. Another funeral march will begin, another barricade will likely be set on fire, and another curfew broken.







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Slain girl made anti-gang video

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The sixth-grader can barely keep from smiling, self-conscious in front of the camera as she delivers a very serious message.

"Hi, my name is Hadiya. This commercial is informational for you and your future children," she begins. "So many children out there are in gangs and it's your job as students to say no to gangs and yes to a great future."






The video then shows shots of a boy slumped in a stairwell, another boy sprawled against a locker, a girl lying on the floor against a wall as a classmate next to Hadiya says, "So many children in the world have died from gang violence. More than 500 children have died from being in the wrong place at the wrong time."

Four years after Hadiya Pendleton made that video at Carter G. Woodson Elementary School, police are saying the same thing about her.

Hadiya had just finished her final exams at King Prep High School, where she was a sophomore, and was hanging out with friends from the school's volleyball team when she was gunned down in a park in the 4400 block of South Oakenwald Avenue.

Hadiya and the others had sought shelter from a rainstorm under a canopy at the park around 2:20 p.m. Tuesday when a gunman jumped a fence, ran toward them and opened fire, police said.

As the teens scattered, Hadiya and two teenage boys were shot. Hadiya was hit in the back and pronounced dead at Comer Children's Hospital less than an hour after the shooting. The wounds suffered by the boys were not life-threatening.

Police Superintendent Garry McCarthy stressed that neither Hadiya nor anyone in the group she was with were involved with gangs. But it appears the gunman mistook the students for members of a rival gang, he said. The shooter was last seen fleeing in a white Nissan.

“These were good kids by everything that I learned," McCarthy said at a Wednesday news conference, where a reward of $11,000 was announced. "Wrong place at the wrong time.”

Hadiya was shot a little more than a week after performing with the King College Prep band in Washington during President Barack Obama's inauguration festivities. The shooting occurred in a park about a mile north of Obama's Kenwood home.

The shooting has drawn the attention of both the White House, which is pushing for national gun control, and City Hall as Chicago closes on a violent January. Hadiya was the 42nd homicide victim this year in the city, where killings last year climbed above 500.

Hadiya's father, Nathaniel Pendleton, pleaded for someone to step forward and bring the 15-year-old's killer to justice.

"She was destined for great things," he said.

Hadiya was a majorette with the band at King, one of the city's elite selective-enrollment schools. She dreamed of going to Northwestern University and talked about becoming a pharmacist or a journalist, maybe a lawyer.

Police have reported no arrests.



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Syria warns of "surprise" response to Israel attack

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BEIRUT/AMMAN (Reuters) - Syria warned on Thursday of a possible "surprise" response to Israel's attack on its territory and Russia condemned the air strike as an unprovoked violation of international law.


Damascus could take "a surprise decision to respond to the aggression of the Israeli warplanes", Syrian ambassador to Lebanon Ali Abdul-Karim Ali said a day after Israel struck against Syria.


"Syria is engaged in defending its sovereignty and its land," Ali told a website of the Lebanese militant group Hezbollah. Syria and Israel have fought several wars and in 2007 Israeli jets bombed a suspected Syrian nuclear site, without a military response from Damascus.


Diplomats, Syrian rebels and regional security sources said on Wednesday that Israeli jets had bombed a convoy near the Lebanese border, apparently hitting weapons destined for Hezbollah. Syria denied the reports, saying the target had been a military research center northwest of Damascus.


Hezbollah, which has supported Syrian President Bashar al-Assad as he battles an armed uprising in which 60,000 people have been killed, said Israel was trying to thwart Arab military power and vowed to stand by its ally.


"Hezbollah expresses its full solidarity with Syria's leadership, army and people," said the group which fought an inconclusive 34-day war with Israel in 2006.


Israel has remained silent on the attack and there has been little reaction from its Western backers, but Syria's allies in Moscow and Tehran were quick to denounce the strike.


Russia, which has blocked Western efforts to put pressure on Syria at the United Nations, said that any Israeli air strike would amount to unacceptable military interference.


"If this information is confirmed, then we are dealing with unprovoked attacks on targets on the territory of a sovereign country, which blatantly violates the U.N. Charter and is unacceptable, no matter the motives to justify it," the Foreign Ministry said in a statement.


Iranian deputy foreign minister Hossein Amir Abdullahian said the attack "demonstrates the shared goals of terrorists and the Zionist regime", Fars news agency reported. Assad portrays the rebels fighting him as foreign-backed, Islamist terrorists, with the same agenda as Israel.


"It is necessary for the sides which take tough stances on Syria to now take serious steps and decisive stances against this aggression by Tel Aviv and uphold criteria for security in the region," Abdullahian said.


An aide to Supreme Leader Ayatollah Ali Khamenei said on Saturday that Iran would consider any attack on Syria as an attack on itself, but Abdullahian made no mention of retaliation.


Hezbollah said the attack showed that the conflict in Syria was part of a scheme "to destroy Syria and its army and foil its pivotal role in the resistance front (against Israel)".


BLASTS SHOOK DISTRICT


Details of Wednesday's strike remain sketchy and, in parts, contradictory. Syria said Israeli warplanes, flying low to avoid detection by radar, crossed into its airspace from Lebanon and struck the Jamraya military research centre.


But the diplomats and rebels said the jets hit a weapons convoy heading from Syria to Lebanon, apparently destined for Assad's ally Hezbollah, and the rebels said they - not Israel - hit Jamraya with mortars.


The force of the dawn attack shook the ground, waking nearby residents from their slumber with up to a dozen blasts, two sources in the area said.


"We were sleeping. Then we started hearing rockets hitting the complex and the ground started shaking and we ran into the basement," said a woman who lives adjacent to the Jamraya site.


The resident, who declined to be named because of the sensitivity over Israel's reported strike on Wednesday morning, said she could not tell whether the explosions which woke her were the result of an aerial strike.


Another source who has a relative working inside Jamraya reported that a building inside the complex had been cordoned off after the attack and that flames were seen rising from the area after the attack.


"It appears that there were about a dozen rockets that appeared to hit one building in the complex," the source, who also asked not to be identified, told Reuters. "The facility is closed today."


Israeli newspapers quoted foreign media on Thursday for reports on the attack. Journalists in Israel are required to submit articles on security and military issues to the censor, which has the power to block any publication of material it deems could compromise state security.


Syrian state television said two people were killed in the raid on Jamraya, which lies in the 25-km (15-mile) strip between Damascus and the Lebanese border. It described it as a scientific research centre "aimed at raising the level of resistance and self-defense".


Diplomatic sources from three countries told Reuters that chemical weapons were believed to be stored at Jamraya, and that it was possible that the convoy was near the large site when it came under attack. However, there was no suggestion that the vehicles themselves had been carrying chemical weapons.


"The target was a truck loaded with weapons, heading from Syria to Lebanon," said one Western diplomat, echoing others who said the convoy's load may have included anti-aircraft missiles or long-range rockets.


The raid followed warnings from Israel that it was ready to act to prevent the revolt against Assad leading to Syria's chemical weapons and modern rockets reaching either his Hezbollah allies or his Islamist enemies.


A regional security source said Israel's target was weaponry given by Assad's military to fellow Iranian ally Hezbollah.


"This episode boils down to a warning by Israel to Syria and Hezbollah not to engage in the transfer of sensitive weapons," the source said. "Assad knows his survival depends on his military capabilities and he would not want those capabilities neutralized by Israel - so the message is this kind of transfer is simply not worth it, neither for him nor Hezbollah."


Such a strike or strikes would fit Israel's policy of pre-emptive covert and overt action to curb Hezbollah and does not necessarily indicate a major escalation of the war in Syria. It does, however, indicate how the erosion of the Assad family's rule after 42 years is seen by Israel as posing a threat.


Israel this week echoed concerns in the United States about Syrian chemical weapons, but its officials say a more immediate worry is that the civil war could see weapons that are capable of denting its massive superiority in airpower and tanks reaching Hezbollah; the group fought Israel in 2006 and remains a more pressing threat than its Syrian and Iranian sponsors.


(Additional reporting by Mariam Karouny and Oliver Holmes in Beirut, Gabriela Baczynska in Moscow and Marcus George in Dubai; editing by David Stamp)



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Wall Street flat after GDP shock, Fed awaited

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NEW YORK (Reuters) - Stocks were little changed on Wednesday as data showing the economy unexpectedly contracted in the fourth quarter was offset by upbeat parts of the report and strong results from Boeing and Amazon.


Economists stressed that the 0.1 percent contraction in U.S. gross domestic product, caused partly by a plunge in government spending and lower business inventories, is not an indicator of recession.


"Inventories came down and that subtraction is actually positive for the private sector," said Jim Russell, chief equity strategist for U.S. Bank Wealth Management in Cincinnati.


"A lot of the important components going forth are there, like consumption by individuals and capital spending, and they are looking strong."


Wall Street opened slightly higher despite the GDP data, with traders awaiting a statement from the Federal Reserve after its two-day policy-setting meeting. The Fed is expected to keep monetary policy on a steady, accommodative path, though debate continues over when it should curtail its bond-buying program.


The S&P 500 held above 1,500, seen by technical analysts as an inflection point that will determine the overall direction in the near term. The index is on track to post its best month since October 2011 and its best January since 1997.


"This is a very modest pullback after a steep run," said Paul Zemsky, head of asset allocation at ING Investment Management in New York.


"It is too soon for the Fed to start talking about the end of (their bond buying program); the economy needs stimulus to sustain this recovery."


The Dow Jones industrial average <.dji> rose 0.27 points or 0 percent, to 13,954.69, the S&P 500 <.spx> lost 1.04 points or 0.07 percent, to 1,506.8 and the Nasdaq Composite <.ixic> dropped 0.11 points or -0 percent, to 3,153.55.


Both Boeing Co and Amazon.com shares gained after earnings beat expectations, continuing a trend this quarter of high-profile names advancing after results.


Amazon rose 5.4 percent to $274.40 and Boeing rose 1.2 percent to $74.54.


Thomson Reuters data showed that of the 192 companies in the S&P 500 that have reported earnings this season 68.8 percent have been above analyst expectations, which is a higher proportion than over the past four quarters and above the average since 1994.


Chesapeake Energy rose 6.5 percent to $20.20 a day after it said Aubrey McClendon would step down as chief executive. The last year has been marked by civil and criminal probes into the second-largest U.S. natural gas producer.


Research In Motion shares fell 5.7 percent to $14.76 after the company, which is changing its name to BlackBerry, unveiled a long-delayed line of smartphones in hopes of a comeback into a market it once dominated.


Giving the market extra support, private sector employment topped forecasts with the ADP National Employment report showing 192,000 jobs added in January, higher than the 165,000 expectation.


(Reporting by Rodrigo Campos; Editing by Kenneth Barry and Nick Zieminski)



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Lewis tells Harbaugh 'nothing to' report

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NEW ORLEANS (AP) — Ravens coach John Harbaugh says star linebacker Ray Lewis assured him "there's nothing to" a magazine report linking him to a company that makes deer-antler spray containing a banned performance enhancer.


Harbaugh said Wednesday morning he spoke with Lewis. The coach said Lewis "knows there is nothing to it. He understands it's something he's never been involved in."


On Tuesday, Sports Illustrated reported that Lewis sought help from a company that makes the unorthodox product to speed his recovery from a torn right triceps. Lewis missed 10 games with the injury.


"He laughed about it," Harbaugh said, referring to Lewis. "He told me there's nothing to it. He's told us in the past and now that he has never taken any of it."


Baltimore plays the San Francisco 49ers in the Super Bowl on Sunday in the final game of Lewis' career.


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BlackBerry must remember strengths

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BlackBerry CEO Thorsten Heins displays one of the new Blackberry 10 smartphones at the product launch January 30.




STORY HIGHLIGHTS


  • BlackBerry sales have slumped in the U.S. but is still strong in emerging markets

  • New models launched should remember why they are popular in developing world

  • In places like Brazil and South Africa, the 10 is the update to their current phone

  • in Sub-Saharan Africa there is expected to be 175 million new customers in the next 3 years




Watch Jim Clancy on CNN International's "The Brief" at 4p.m. ET GMT Friday.


(CNN) -- BlackBerry's loss of market share in the U.S. is the stuff of legends. Last fall, it was estimated only about 2% of American phone users were still carrying their BlackBerry mobile with its iconic keypad.


But consider this: sub-Saharan Africa is expected to add 175 million new mobile users in just the coming 3 years. That's according to the GSMA, which represents the world's mobile operators.


"Mobile has already revolutionized African society and yet demand still continues to grow by almost 50 percent a year," said Tom Phillips, Chief Government and Regulatory Affairs Officer, GSMA.


That could be good news indeed for BlackBerry. Research in Motion, the maker of BlackBerry, estimates it holds a 70% market share in countries like South Africa.


The company's new phones, announced this week, are not the ones some of its best customers in emerging markets would like to buy. They're too expensive. But Research in Motion -- which also this week changed its company name to BlackBerry -- is pledging some of its six new models will address that.


While millions in China, Europe and the U.S. have adopted Android or iOS smartphones with a vengeance, millions more users in emerging markets are enthused about what's in store for the new BlackBerry 10. It's the update for what many of them are already using.






They live in countries like Brazil, Malaysia, Nigeria, Kenya and South Africa. They have embraced the BlackBerry for a combination of factors that all point to the different way mobile devices are used.


Unlike their counterparts in Europe and America, the mobile in their pocket is more likely to be their primary link to the internet.


BlackBerry Messenger is the connection that allows these users unlimited conversations without paying charges for SMS data. While young, brand-conscious Chinese may be willing to part with several months' salary to buy the latest iPhone, African users are looking for more practical (and cheaper) connections.


What separates developed countries from their developing counterparts at street level can be summed up in a single word: infrastructure.


Isobel Coleman, senior fellow and Director of the Civil Society, Markets and Democracy Initiative at the Council on Foreign Relations, says mobile technology has proved it can bridge the gap where infrastructure is lacking.


"It's a culture, it's an economy, it's innovation, education, healthcare, it's all of these things," says Coleman.


You can take that to the bank. For many Africans, their cell phone account is the first bank account they've ever owned.


In emerging markets, mobile phone banking is growing because of the lack of infrastructure. Fewer bank branches often mean long distances to travel and long lines once you've arrived.


Africans are expected to transfer more than $200 billion per year or 18% of the continent's GDP by 2015.


Oh, and that keyboard. No matter where you are in the world, there will always be a demand for a keyboard that clicks. The company appears to understand that as BlackBerry 10 models come with both soft keypads and the traditional BlackBerry buttons.


I asked some of my Twitter followers to weigh in on the BlackBerry 10 roll out. While some said Android or Apple's iOS were in their future plans, many others expressed continued enthusiasm for the BlackBerry.


Soji, a pianist and teacher in Nigeria tweeted back "I'm falling in love with this BB. Cheaper to own."


From Kuala Lumpur, Amir wrote "I need a physical keyboard to type while also having a touch-screen for photos etc. Security factor also important."


Hans-Eric from South Africa reinforced the sentiments of many mobile users in emerging markets: "The cost of data is simply too high without it (BlackBerry.)"


The voices from emerging markets couldn't have been clearer. What they expect from BlackBerry 10 is a stronger, longer lasting battery, durability and continued low cost connectivity.


CFR's Coleman agrees that BlackBerry (and anyone else) trying to win and hold this mobile device sector has to understand how these devices are being used and give the customers what they want.


"Cheap. Rugged. Not too many bells and whistles. Practical."


There is little doubt smartphones are changing the way people use the internet, how they bank, shop and interact socially.


But it's worth keeping in perspective that in a world where there are now an estimated 1 billion smartphones, there are 5 billion feature phone users. That's a lot of upside growth potential for BlackBerry and all the other players out there.







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Girl fatally shot a week after appearing at inauguration

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A 15-year-old girl who had recently taken part in inauguration events in Washington was shot to death after leaving her South Side school Tuesday.









Hadiya Pendleton was such a whirlwind of activity — from preparing to travel abroad to performing at President Barack Obama’s inauguration festivities — that family members would jokingly tell the 15-year-old to slow down.

"There were a lot of good opportunities that were coming her way. She was just taking them all,” said Lakeisha Stewart, 37, Hadiya’s godmother. "She was the kid who you had to say, ‘Slow down, you can’t do everything.' "






Pendleton was hanging out with her volleyball team near King College Prep on the South Side Tuesday afternoon when she was fatally shot in the back when a gunman filed into a crowd of students, according to family and police.

“All of it just makes no sense,” Stewart said. “She was following (her parents') rules.”

Just last week, at President Barack Obama’s inauguration, Hadiya sent her godparents a text and a photo of her and her teammates in Washington, D.C., Stewart said.  She had not gotten the chance to talk to Hadiya about the details of the trip since she returned from the East Coast.

Hadiya, who has a 10-year-old brother, had also been preparing to travel to Paris with her school, Stewart said, and loved to dance. She was a majorette on the school's drill team.

Hadiya’s parents made sure she stayed involved in school, said her godfather, Damon Stewart, 36, an attorney and Chicago police officer. He said she was in the wrong place at the wrong time.

“He life was dominated by her activities and the things she was into,” he said.

“I’ve known this little girl her entire life," added Lakeisha Stewart. "I can’t think of a moment that this child did anything wrong. She always strived to do the right thing."

At King, Bria Carter and two friends said the halls of the school were unusually quiet as students mourned Hadiya’s death.

"People are crying at school," said Carter, 17, a friend of Hadiya. "Those who knew her are so hurt.

"She was an amazing person -- always positive," Carter said. "She was one of those people everyone loved. She was the sweetest thing."

Brothers Addison and Zion Morgan said many of their classmates took to social media Tuesday night to express their emotions.

"Based off of the tweets, everyone is surprised and shocked by this," said senior Addison Morgan, 17.

Freshman Zion Morgan, 15, said he was in a U.S. History class with Hadiya.  "She was always smiling," Zion Morgan said. "She would always raise her hand in class."

Hadiya and a group of others had decided to hang out at Harsh Park about three blocks of the school Tuesday after taking their exams. About a dozen teens had taken shelter under a canopy during a rainstorm when a boy or man jumped a fence in the park, ran toward them and opened fire around 2:20 p.m., police said.

Hadiya was wounded in the back and a 16-year-old boy -- also a student at King -- was shot in the leg, police said.

The attacker got into an auto and fled, police said. No arrests have been reported.

At the park Wednesday, neighbors along the well-maintained North Kenwood block could not remember any trouble there before.

The small park's bright blue and orange playground equipment is often used by toddlers down the street, a neighbor said, but otherwise remains quiet.

The neighbor, who declined to be named, lives next door to the park and said it's a "perfect neighborhood."

Teens and older children are not often visitors of the park, he said. The block is filled with "Harvard attorneys," "business owners" and other executives, the neighbor said. "No one knows about our block," he said. "It's a quiet place."

Hadiya's godmother agreed. “It amazed me when I found out what park it was," she said. "Nothing I have ever heard ever goes on over there.”

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Egypt curfew scaled back as Mursi seeks end to bloodshed

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CAIRO/BERLIN (Reuters) - Authorities in an Egyptian city scaled back a curfew imposed by President Mohamed Mursi, and the Islamist leader cut short a visit to Europe on Wednesday to deal with the deadliest violence in the seven months since he took power.


Two more protesters were shot dead before dawn near Cairo's central Tahrir Square on Wednesday, a day after the army chief warned that the state was on the brink of collapse if Mursi's opponents and supporters did not end street battles.


More than 50 people have been killed in the past seven days of protests by Mursi's opponents, raising global concern over whether the Islamist leader can restore stability to the most populous Arab country.


Mursi imposed a curfew and a state of emergency on three Suez Canal cities on Sunday but that only seemed to further provoke crowds in a week of unrest marking the second anniversary of the uprising that toppled Hosni Mubarak.


The governor of Ismailia, one of the three canal cities, said on Wednesday he was scaling back the curfew, which would now take effect nightly from 2:00 a.m. instead of 9:00 p.m..


Mursi, speaking in Berlin before hurrying home to deal with the crisis, called for dialogue with opponents but would not commit to their demand that he first agree to include them in a unity government.


Asked about that proposal, he said the next government would be formed after parliamentary elections in April.


Egypt was on its way to becoming "a civilian state that is not a military state or a theocratic state", Mursi said.


The violence at home forced Mursi to scale back his European visit, billed as a chance to promote Egypt as a destination for foreign investment. He flew to Berlin but called off a trip to Paris and was due back home after only a few hours in Europe.


Chancellor Angela Merkel, who met him, echoed other Western leaders who have called on him to give his opponents a voice.


"One thing that is important for us is that the line for dialogue is always open to all political forces in Egypt, that the different political forces can make their contribution, that human rights are adhered to in Egypt and that of course religious freedom can be experienced," she said at a joint news conference with Mursi.


SPIRIT OF REVOLUTION


Mursi's critics accuse him of betraying the spirit of the revolution by keeping too much power in his own hands and those of his Muslim Brotherhood, the Islamist movement banned under Mubarak which won repeated elections since the 2011 uprising.


Mursi's supporters say the protesters want to overthrow Egypt's first democratically elected leader. The current unrest has deepened an economic crisis that saw the pound currency tumble in recent weeks.


Near Cairo's Tahrir Square on Wednesday morning, dozens of protesters threw stones at police who fired back teargas, although the scuffles were brief.


"Our demand is simply that Mursi goes, and leaves the country alone. He is just like Mubarak and his crowd who are now in prison," said Ahmed Mustafa, 28, a youth who had goggles on his head to protect his eyes from teargas.


Opposition politician Mohamed ElBaradei called for a meeting of the president, ministers, the ruling party and the opposition to halt the violence. But he also restated the precondition that Mursi first commit to seeking a national unity government.


The worst violence has been in the Suez Canal city of Port Said, where rage was fuelled by death sentences passed against soccer fans for roles in deadly riots last year.


After decades in which the West backed Mubarak's military rule of Egypt, the emergence of an elected Islamist leader in Cairo is probably the single most important change brought about by the wave of Arab revolts over the past two years.


Mursi won backing from the West last year for his role in helping to establish a ceasefire between Israel and Palestinians that ended a conflict in Gaza. But he then followed that with an effort to fast-track a constitution that reignited dissent at home and raised global concern over Egypt's future.


Western countries were alarmed this month by video that emerged showing Mursi making vitriolic remarks against Jews and Zionists in 2010 when he was a senior Brotherhood official.


German Foreign Minister Guido Westerwelle said ahead of Mursi's visit that the remarks, in which Mursi referred to Zionists as "descendants of apes and pigs" were "unacceptable".


"NOT AGAINST JEWS"


Asked about those remarks at the news conference with Merkel, Mursi repeated earlier explanations that they had been taken out of context.


"I am not against the Jewish faith," he said. "I was talking about the practices and behavior of believers of any religion who shed blood or who attack innocent people or civilians. That's behavior that I condemn."


"I am a Muslim. I'm a believer and my religion obliges me to believe in all prophets, to respect all religions and to respect the right of people to their own faith," he added.


Egypt's main liberal and secularist bloc, the National Salvation Front, has so far refused talks with Mursi unless he promises a unity government including opposition figures.


"Stopping the violence is the priority, and starting a serious dialogue requires committing to guarantees demanded by the National Salvation Front, at the forefront of which are a national salvation government and a committee to amend the constitution," ElBaradei said on Twitter.


Those calls have also been backed by the hardline Islamist Nour party - rivals of Mursi's Brotherhood. Nour and the Front were due to meet on Wednesday, signaling an unlikely alliance of Mursi's critics from opposite ends of the political spectrum.


Brotherhood leader Mohamed El-Beltagy dismissed the unity government proposal as a ploy for the Front to take power despite having lost elections. On his Facebook page he ridiculed "the leaders of the Salvation Front, who seem to know more about the people's interests than the people themselves".


In a sign of the toll the unrest is having on Egypt's economy, ratings agency Fitch downgraded its sovereign rating by one notch to B on Wednesday.


German industry leaders see potential in Egypt but are concerned about political instability.


"At the moment many firms are waiting on political developments and are cautious on any big investments," said Hans Heinrich Driftmann, head of Germany's Chamber of Industry and Commerce.


(Additional reporting by Yasmine Saleh and Marwa Awad in Cairo, Stephen Brown and Gernot Heller in Berlin and Arshad Mohammed in Washington; Writing by Peter Graff; Editing by Peter Millership)



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Defensive stocks extend rally as caution sets in

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NEW YORK (Reuters) - Stocks rose on Tuesday, led by defensive sectors, in a sign the cash piles moving into the market recently are being put to use by cautious investors to pick up more gains.


The S&P 500 is on track to post its best monthly performance since October 2011 as investors poured $55 billion in new cash into stock mutual funds and exchange-traded funds in January, the biggest monthly inflow on record.


Among rising defensive shares, which are companies relatively immune to economic swings, were drugmaker Pfizer, up 1.2 percent to $27.16 and AT&T , 1.5 percent higher to $34.64.


The S&P hovered near 1,500, and market technicians say the benchmark is at a turning point which will determine if the index will keep moving higher or find it difficult to break through, resulting in a move lower in the near term.


"Cyclicals were moving very nicely, now you see balance with some of the defensives. Many managers use that as an internal hedge in equity portfolios," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.


She said the market is cautious ahead of Wednesday's statement following the Federal Reserve's two-day meeting. In addition, defensive stocks would hold up better if Friday's payrolls report surprises on the downside.


The Dow Jones industrial average <.dji> rose 57.42 points or 0.41 percent, to 13,939.35, the S&P 500 <.spx> gained 4.88 points or 0.33 percent, to 1,505.06 and the Nasdaq Composite <.ixic> dropped 3.24 points or 0.1 percent, to 3,151.06.


The top performing sectors on the S&P 500 were healthcare <.spxhc> and telecom services <.splrcl>, both up more than 1 percent.


The equity gains have largely come on a strong start to earnings season, though results were mixed on Tuesday with Pfizer rising but Ford Motor Co dropping after its report.


Both companies reported profits that topped expectations, but Ford also forecast a wider loss in its European segment. Shares dropped 3.6 percent to $13.32 as one of the biggest percentage losers on the S&P 500.


Thomson Reuters data showed that of the 174 companies in the S&P 500 that have reported earnings this season, 68.4 percent have been above analyst expectations, which is a higher proportion than over the past four quarters and above the average since 1994.


The Nasdaq was pressured by disappointing outlooks from Seagate Technology and BMC Software . Seagate shares lost 8.3 percent to $34.30 and BMC fell 8.5 percent to $40.70.


Software maker VMware Inc lost 20 percent to $78.26 also after a cautious 2013 outlook.


Amazon was the biggest drag on the Nasdaq with a 2 percent drop to $270.57 before its results, expected after the closing bell.


U.S. home prices rose in November to rack up their best yearly gain since the housing crisis began, a further sign that the sector is on the mend, but consumer confidence fell to its lowest level in more than a year in the wake of higher taxes for many Americans.


(Editing by Kenneth Barry and Nick Zieminski)



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Report links A-Rod with PED use; MLB investigates

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NEW YORK (AP) — Major League Baseball said it is "extremely disappointed" about new allegations of performance-enhancing drug use against Alex Rodriguez and other players contained in a newspaper report.


The Miami New Times, a popular alternative weekly, said in a story Tuesday that it had obtained files through an employee at a recently closed clinic in south Florida that show Rodriguez purchased HGH and other substances.


"We are always extremely disappointed to learn of potential links between players and the use of performance-enhancing substances. ... Through our Department of Investigations, we have been actively involved in the issues in South Florida," MLB's statement said.


Rodriguez, the New York Yankees slugger currently recovering from hip surgery, has admitted using steroids from 2001-03 but insisted he stopped after that.


"We fully support the Commissioner's Joint Drug Prevention and Treatment Program. This matter is now in the hands of the Commissioner's Office," the Yankees said in a statement. "We will have no further comment until that investigation has concluded."


Other players named by the New Times as appearing in the records at Biogenesis include Melky Cabrera, Gio Gonzalez, Bartolo Colon and Nelson Cruz. Cabrera, the All-Star game MVP for the San Francisco Giants last season, was suspended 50 games in August for failing a drug test. The outfielder has signed with the Toronto Blue Jays as a free agent.


Colon, a pitcher for the Oakland A's, was also suspended 50 games in August.


Gonzalez, who went 21-8 for the Washington Nationals last season, and Cruz, who hit 24 home runs for the Texas Rangers, had not previously been linked to performance-enhancing drugs.


The Rangers said in a statement that after being contacted by the New Times late last week, they notified Major League Baseball. The club said it had no further comment.


Gonzalez posted on his Twitter feed: "I've never used performance enhancing drugs of any kind and I never will, I've never met or spoken with tony Bosch or used any substance."


The report said that the notes of clinic chief Anthony Bosch list the players' names and the substances they received, including human growth hormone and steroids. Several unidentified employees and clients confirmed to the publication that the clinic distributed the substances, the paper said. The employees said that Bosch bragged of supplying drugs to professional athletes but they never saw the sports stars in the office.


Any player found by MLB to use banned, performance-enhancing substances, is subject to suspension.


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Why haven't we learned from fires?

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STORY HIGHLIGHTS


  • Pyrotechnics, overcrowding, poor exits have contributed to tragic fires in recent years

  • You would think the world would have learned from past incidents, John Barylick says

  • Concertgoers have to be their own fire marshals, he says




Editor's note: John Barylick, author of "Killer Show," a book on the 2003 Station nightclub fire in Rhode Island, is an attorney who represented victims in wrongful death and personal injury cases arising from the fire.


(CNN) -- Sunday morning we awoke to breaking news of another tragic nightclub fire, this time in Brazil. At last report the death toll exceeded 230.


This tragedy is not without precedent. Next month will mark the 10th anniversary of a similar nightclub fire in Rhode Island. At this sad time, it's appropriate to reflect on what we've learned from club fires -- and what we haven't.


Rhode Island's Station nightclub fire of 2003, in which 100 concertgoers lost their lives, began when fireworks set off by Great White, an 80s heavy metal band, ignited flammable packing foam on the club's walls.


Deadly blazes: Nightclub tragedies in recent history



John Barylick

John Barylick





Panicked patrons stampeded toward the club's main exit, and a fatal pileup ensued. Contributing to the tragedy were illegal use of pyrotechnics, overcrowding and a wall covering that would have failed even the most rudimentary flammability tests.


Video images of the Station fire were broadcast worldwide: A concert begins; the crowd's mood changes from merry, to curious, to concerned, to horrified -- in less than a minute. You'd think the world would have learned from it. You would be wrong.



The following year, the Republica Cromanon nightclub in Argentina went up in flames, killing 194 people. The club was made to hold about 1,000 people, but it was estimated that more than 3,000 fans were packed inside the night of the fire, which began when fans began lighting flares that caught the roof on fire.


Echoes of the past: Rhode Island victims 'can't help but watch'


Then, in January 2009, at least 64 New Year's revelers lost their lives in a nightclub in Bangkok, Thailand, after fire ignited its ceiling. Many were crushed in a rush to get out of the club. In December of that same year, a fire in a Russian nightclub, ignited by pyrotechnics, killed 156 people. Overcrowding, poor exits, and indoor fireworks all played roles in these tragedies; yet no one bothered to learn from mistakes of the past.


While responsibility for concert disasters unquestionably lies with venue operators, performers and promoters, ultimately, we, as patrons of clubs and concerts, can enhance our own safety by taking a few simple steps. The National Fire Protection Association urges concertgoers to:


• Be observant. Is the concert venue rundown or well-maintained? Does the staff look well-trained?


• As you proceed to your seat, observe how long the process takes. Could you reverse it in a hurry? Do you pass through pinch points? Is furniture in the way?


• Once seated, take note of the nearest exit. (In an emergency, most people try to exit by the door they entered, which is usually not the closest, and is always overcrowded.) Then, share the location of that nearest exit with your entire party. Agree that at the first sign of trouble, you will all proceed to it without delay.


• Once the show begins, remain vigilant. If you think there's a problem, LEAVE IMMEDIATELY. Do not stay to "get your money's worth" despite concerns about safety. Do not remain to locate that jacket or bag you placed somewhere. No concert is worth your life. Better to read about an incident the next day than be counted as one of its statistics.


Read more: How to protect yourself in a crowd


To be sure, all fire codes must be vigorously enforced, and club and concert hall operators must be held to the highest standards. A first step is banning indoor pyrotechnics in all but the largest, stadium-type venues.


But, ultimately, we are our own best "fire marshals" when it comes to avoiding, and escaping, dangerous situations. We can still enjoy shows. But it is up to us to look out for our own safety.


In coming days, Rhode Islanders will follow the unfolding news from Brazil with a sense of queasy deja vu -- the rising body counts, the victim identification process, the grieving families, and the assigning (and dodging) of blame. If only they had learned from our tragedy.


Eerie sounds of cell phones amid disaster adds to first-responder toll


The opinions expressed in this commentary are solely those of John Barylick.







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Record high reached, could be warmest January day ever

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Today is already the warmest Jan. 29 in Chicago history, toppling an almost 100-year-old record 15 minutes before the sun came up.

The previous record – 59 degrees in 1914 – was surpassed at 6:50 a.m. at O'Hare International Airport, according to the National Weather Service.






Chicago is also flirting with a new all-time high for January. The current record is 67 degrees set on Jan. 25, 1950. Today's forecast is for a high of 66 degrees. As of 11 a.m., it was 61 at the airport.

 “This is basically a May air mass in January,” said Richard Castro, a meteorologist for the weather service.

Rain is expected all day, with thunderstorms likely as a cold front moves through later today, Castro said.

“Scattered thunderstorms are the rule for the day," he said. "Any thunderstorms that develop could be very efficient in rainfall production."

Anywhere from 1 to 1.5 inches of rain is expected to fall, and the area is under a flood warning because the ground is still frozen.

“The top layers are fairly saturated and beneath that it’s rock hard from being frozen from the cold snap last week, so there’s nowhere for (the water) to go,” Castro said.

The warm, wet weather will give way to colder temperatures Wednesday, Thursday and Friday, with forecasters predicting snow on Wednesday afternoon and highs in the teens on Thursday and Friday.

chicagobreaking@tribune.com


Twitter: @ChicagoBreaking






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Army warns unrest pushing Egypt to the brink

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CAIRO, Egypt (Reuters) - Egypt's army chief said political unrest was pushing the state to the brink of collapse - a stark warning from the institution that ran the country until last year as Cairo's first freely elected leader struggles to curb bloody street violence.


Abdel Fattah al-Sisi, a U.S.-trained general appointed by President Mohamed Mursi last year to head the armed forces, added in a statement on Tuesday that one of the primary goals of deploying troops in cities on the Suez Canal was to protect the waterway that is vital for Egypt's economy and world trade.


Sisi's comments, published on an official army Facebook page, followed 52 deaths in the past week of disorder and highlighted the mounting sense of crisis facing Egypt and its Islamist head of state who is striving to fix a teetering economy and needs to prepare Egypt for a parliamentary election in a few months that is meant to cement the new democracy.


Violence largely subsided on Tuesday, although some youths again hurled rocks at police lines in Cairo near Tahrir Square.


It seemed unlikely that Sisi was signaling the army wants to take back the power it held for six decades since the end of the colonial era and through an interim period after the overthrow of former air force chief Hosni Mubarak two years ago.


But it did send a powerful message that Egypt's biggest institution, with a huge economic as well as security role and a recipient of massive direct U.S. subsidies, is worried about the fate of the nation, after five days of turmoil in major cities.


"The continuation of the struggle of the different political forces ... over the management of state affairs could lead to the collapse of the state," said General Sisi, who is also defense minister in the government Mursi appointed.


He said the economic, political and social challenges facing the country represented "a real threat to the security of Egypt and the cohesiveness of the Egyptian state" and the army would remain "the solid and cohesive block" on which the state rests.


Sisi was picked by Mursi after the army handed over power to the new president in June once Mursi had sacked Field Marshal Hussein Tantawi, in charge of Egypt during the transition and who had also been Mubarak's defense minister for 20 years.


The instability has provoked unease in Western capitals, where officials worry about the direction of a powerful regional player that has a peace deal with Israel. The United States condemned the bloodshed and called on Egyptian leaders to make clear violence was not acceptable.


DEEPLY POLARISED


The 58-year-old previously headed military intelligence and studied at the U.S. Army War College. Diplomats say he is well known to the United States, which donates $1.3 billion in military aid each year, helping reassure Washington that the last year's changes in the top brass would not upset ties.


One of Sisi's closest and longest serving associates, General Mohamed el-Assar, an assistant defense minister, is now in charge of the military's relations with the United States.


Almost seven months after Mursi took office, Egyptian politics have become even more deeply polarized.


Opponents spurned a call by Mursi for talks on Monday to try to end the violence. Instead, protesters have rallied in Cairo and Alexandria, and in the three Suez Canal cities - Port Said, Ismailia and Suez - where Mursi imposed emergency rule.


On Tuesday, thousands were again on the streets of Port Said to mourn the deaths of two people in the latest clashes there, taking the total toll in Mediterranean port alone to 42 people. Most were killed by gunshots in a city where weapons are rife.


Mohamed Ezz, a Port Said resident speaking by telephone, heard heavy gunfire through the night. "Gunshots damaged the balcony of my flat, so I went to stay with my brother," he said.


Residents in the three canal cities had taken to the streets in protest at a nightly curfew now in place there. The president's spokesman said on Tuesday that the 30-day state of emergency could be shortened, depending on circumstances.


In Cairo on Tuesday afternoon, police again fired teargas at stone-throwing youths in a street near Tahrir Square, the center of the 2011 uprising. But the clashes were less intense than previous days and traffic was able to cross the area. Street cleaners swept up the remains of burnt tires and other debris.


The police have been facing "unprecedented attacks accompanied by the appearance of groups that pursue violence and whose members possess different types of weapons", the state news agency reported, quoting the Interior Ministry spokesman.


Street flare-ups are a common occurrence in divided Egypt, frustrating many people desperate for order and economic growth.


WARY MILITARY


Although the general's comments were notably blunt, Egypt's military has voiced similar concerns in the past, pledging to protect the nation. But it has refused to be drawn back into a direct political role after its reputation as a neutral party took a pounding during the 17 months after Mubarak fell.


"Egyptians are really alarmed by what is going on," said Cairo-based analyst Elijah Zarwan, adding that the army was reflecting that broader concern among the wider public.


"But I don't think it should be taken as a sign that the military is on the verge of stepping in and taking back the reins of government," he said.


In December, Sisi offered to host a national dialogue when Mursi and the rivals were again at loggerheads and the streets were aflame. But the invitation was swiftly withdrawn before the meeting went ahead, apparently because the army was wary of becoming embroiled again in Egypt's polarized politics.


Protests initially flared during the second anniversary of the uprising which erupted on January 25, 2011 and toppled Mubarak 18 days later. They were exacerbated in Port Said when residents were angered after a court sentenced to death several people from the city over deadly soccer violence.


Since the 2011 revolt, Islamists who Mubarak spent his 30-year rule suppressing have won two referendums, two parliamentary elections and a presidential vote.


But that legitimacy has been challenged by an opposition that accuses Mursi of imposing a new form of authoritarianism. Mursi's supporters says protesters want to overthrow Egypt's first democratically elected leader by undemocratic means.


The army has already been deployed in Port Said and Suez and the government agreed a measure to let soldiers arrest civilians as part of the state of emergency. Sisi reiterated that the army's role would be to support the police in restoring order.


Mursi's invitation to rivals to a national dialogue with Islamists on Monday was spurned by the main opposition National Salvation Front coalition, which described it as "cosmetic".


The presidency said a committee would be formed to look at changes to the constitution, but it ruled out changing the government before the parliamentary election.


Mursi's pushing through last month of a new constitution which critics see as too Islamic remains a bone of contention.


(Additional reporting by Yasmine Saleh and Omar Fahmy in Cairo, Yusri Mohamed in Ismailia and Abdelrahman Youssef in Alexandria; Writing by Edmund Blair; Editing by Alastair Macdonald and Peter Millership)



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S&P 500 dips after rally, but Apple lifts Nasdaq

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NEW YORK (Reuters) - The Standard & Poor's 500 edged lower on Monday as a four-week rally stalled, while a rebound in Apple shares helped buoy the Nasdaq.


Caterpillar shares helped cap losses in the Dow industrials after the heavy equipment maker's outlook eased investors' fears about an economic slowdown in China. Caterpillar's shares rose 2.1 percent to $97.61.


The S&P 500 is coming off a streak of eight sessions of gains, the longest in eight years. On Friday, the major U.S. stock indexes closed a fourth straight week of gains with the S&P 500 ending the session above 1,500 for the first time in more than five years.


The rally has left the market vulnerable to a short-term pullback of up to 3 percent in the S&P 500 as bullish sentiment continues to rise, according to Richard Ross, Auerbach Grayson's global technical strategist.


"Still," Ross said, "we have a lot of momentum and nice seasonality, and technicals support the long-term bull market."


Data on Monday pointed to growing economic momentum as companies sensed improved consumer demand.


Thomson Reuters data showed that of the 150 companies in the S&P 500 that have reported earnings so far, 67.3 percent have beaten analysts' expectations. Since 1994, 62 percent of companies have topped expectations, while the average over the past four quarters stands at 65 percent.


The Dow Jones industrial average <.dji> rose 4.34 points, or 0.03 percent, to 13,900.32.. The S&P 500 <.spx> shed 0.19 of a point, or 0.01 percent, to 1,502.77. The Nasdaq Composite <.ixic> added 11.40 points, or 0.36 percent, to 3,161.11.


Bargain hunters lifted Apple after the tech giant's stock dropped 14.4 percent in the previous two sessions. With Apple's stock up 2.8 percent at $452, the iPad and iPhone maker regained the title as the largest U.S. company by market capitalization as Exxon Mobil fell 0.9 percent to $90.90 and slipped back to second place.


"I think there is more downside in Apple if you did get a broad market pullback," Auerbach Grayson's Ross said.


"I'd be patient unless you're a trader. It might not be the most attractive entry point."


U.S. durable goods orders jumped 4.6 percent in December, a pace that far outstripped expectations for a rise of 1.8 percent. Pending home sales unexpectedly dropped 4.3 percent. Analysts were looking for an increase of 0.3 percent.


Equities have gained support from a recent agreement in Washington to extend the government's borrowing power. On Monday, Fitch Ratings said that agreement removed the near-term risk to the country's 'AAA' rating.


Hess Corp shares shot up 5.7 percent to $62.27 after the company said it would exit its refining business, freeing up to $1 billion of capital. Separately, hedge fund Elliott Associates is looking for approval to buy about $800 million more in Hess stock.


Keryx Biopharmaceuticals Inc said a late-stage trial of its experimental kidney disease drug met the main study goal, and its shares soared nearly 60 percent to $5.45.


(Editing by Jan Paschal)



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Tiger headed toward another win at Torrey

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SAN DIEGO (AP) — The Pacific air was so cold at the end of a 10-hour day at Torrey Pines that Tiger Woods thrust both hands in the front pockets of his rain pants as he walked off the course at the Farmers Insurance Open.


It was a fitting image. Woods made a marathon day look like he was out for a stroll.


Staked to a two-shot lead going into the third round of this fog-delayed tournament, Woods drove the ball where he was aiming and was hardly ever out of position. Even with a bogey on the final hole — the easiest on the back nine — Woods still had a 3-under 69 and expanded his lead by two shots.


In the seven holes he played in the fourth round later Sunday afternoon, Woods hit the ball all over the course and still made three birdies to add two more strokes to his lead.


Thanks to the fog that wiped out an entire day of golf on Saturday, the Farmers Insurance Open didn't stand a chance of finishing on Sunday.


Woods just made it look like it was over.


He had a six-shot lead with 11 holes to play going into the conclusion of the final round on Monday. The two guys chasing him were Brandt Snedeker, the defending champion, and Nick Watney, who won at Torrey Pines in 2008. Neither was waving a white flag. Both understood how much the odds were stacked against them.


"I've got a guy at the top of the leaderboard that doesn't like giving up leads," Snedeker said. "So I have to go catch him."


"All we can do tomorrow is go out and try to make him think about it a little bit and see what happens," Watney said.


And then there was Erik Compton, a two-time heart transplant recipient who had a birdie-eagle finish in the third round that put him in third place through 54 holes, still five shots behind Woods. Someone asked Compton about trying to chase Woods. He laughed.


"I'm trying to chase myself," he said.


Woods was at 17-under par for the tournament, and more than just a six-shot lead was in his corner.


He finished the third round at 14-under 202, making it the 16th time on the PGA Tour that he had at least a four-shot lead going into the final round. His record on the PGA Tour with the outright lead after 54 holes is 38-2, the exceptions being Ed Fiori in 1996 when Woods was a 20-year-old rookie and Y.E. Yang in the 2009 PGA Championship.


Woods attributed his big lead to the "whole package."


"I've driven the ball well, I've hit my irons well, and I've chipped and putted well," he said. "Well, I've hit good putts. They all haven't gone in."


Woods has a good history of Monday finishes, starting with Torrey Pines. It was on this course along the coast north of La Jolla that Woods won a 19-hole playoff against Rocco Mediate to capture the 2008 U.S. Open for his 14th major.


He also won the Pebble Beach National Pro-Am on a Monday in 2000 when he rallied from seven shots behind with seven holes to play. He won his lone title in The Players Championship on a Monday, along with a five-shot win in the Memorial in 2000, and a scheduled Monday finish in the Deutsche Bank Championship outside Boston.


Woods even gets to sleep in.


A Monday finish because of weather typically resumes in the morning so players can get to the next tournament. CBS Sports, however, decided it wanted to televise the conclusion, and so play won't begin until 2 p.m. EST. That decision might have been based on Woods being headed toward victory — just a hunch.


Woods already has won seven times at Torrey Pines, including the U.S. Open. That matches his PGA Tour record at Bay Hill and Firestone (Sam Snead won the Greensboro Open eight times, four each on a different course).


The tournament isn't over, and Woods doesn't see it that way.


"I've got to continue with executing my game plan. That's the idea," he said. "I've got 11 holes to play, and I've got to play them well."


He seized control with his 69 in the third round that gave him a four-shot lead, and he might have put this away in the two hours he played before darkness stopped play.


He badly missed the first fairway to the left, but had a gap through the Torrey pines to the green and had a two-putt par. He missed his next shot so far to the left that the ball wound up in the first cut of the adjacent sixth fairway. He still managed a simple up-and-down for par.


After a 10-foot birdie on the par-3 third, Woods couldn't afford to go left off the tee again because of the PGA Tour's largest water hazard — the Pacific Ocean. So he went miles right, beyond a cart path, a tree blocking his way to the green. He hit a cut shot that came up safely short of the green, and then chipped in from 40 feet for birdie.


"I was able to play those holes in 2-under par," Woods said. "And then I hit three great drives right in a row."


One of them wasn't that great — it was in the right rough, the ball so buried that from 214 yards that Woods hit a 5-wood. It scooted down the fairway and onto the green, setting up a two-putt birdie the stretched his lead to six shots. And after another good drive, the horn sounded to stop play. Because it was due to weather, Woods was able to finish the hole, and he two-putted for par.


Eleven holes on Monday were all that were keeping him from his 75th career win on the PGA Tour, and delivering a message to the rest of golf that there could be more of this to follow no matter what the golf course.


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