Wall Street gains on Bernanke comments, S&P above 1,500

NEW YORK (Reuters) - Stocks rose on Wednesday, with major indexes posting their best daily gains since early January, as Federal Reserve Chairman Ben Bernanke remained steadfast in supporting the Fed's stimulus policy and data pointed to economic improvement.


In a second day before a congressional committee, Bernanke defended the Fed's buying of bonds to keep interest rates low to boost growth. The market's jump of more than 1 percent also came on better-than-expected data on business spending plans and the housing market.


Bernanke's remarks helped the market rebound from its worst decline since November and put the S&P 500 index back above 1,500, a closely watched level that has been technical support until recently. The Dow Jones industrial average <.dji> closed at a level not seen since 2007 as it again pulled within striking distance of an all-time high.


Speaking before the House Financial Services Committee, Bernanke downplayed signs of internal divisions at the Fed, saying the policy of quantitative easing, or QE, has the support of a "significant majority" of top central bank officials.


Bernanke removed a headwind from markets arising from concerns the Fed's quantitative easing might end earlier than anticipated. Doubts about the Fed's intentions had broken a seven-week streak of gains by stocks.


"The Fed continues to encourage risk-taking in markets, which is a powerful tool that makes the danger not being long stocks, not in being too long," said Tom Mangan, a money manager at James Investment Research Inc in Xenia, Ohio.


The Dow Jones industrial average <.dji> was up 176.32 points, or 1.27 percent, at 14,076.45. The Standard & Poor's 500 Index <.spx> was up 19.07 points, or 1.27 percent, at 1,516.01. The Nasdaq Composite Index <.ixic> was up 32.61 points, or 1.04 percent, at 3,162.26.


Pending home sales jumped 4.5 percent in January, three times the rate of growth that had been expected. While orders for durable goods fell more than expected in January, non-defense capital goods orders excluding aircraft - a closely watched proxy for business spending plans - showed the biggest gain since December 2011.


About 74 percent of stocks traded on the New York Stock Exchange closed higher while 64 percent of Nasdaq-listed shares closed up.


The S&P turned very slightly higher on the week, recovering from the index's biggest daily drop since November on Monday. That drop came on concerns over Italy's election, as well as over sequestration - U.S. government budget cuts that will take effect starting on Friday if lawmakers fail to reach an agreement on spending and taxes.


The index had climbed 6.3 percent for the year before pulling back on concerns about Fed policy and inconclusive elections in Italy, which rekindled fears of a new euro zone debt crisis.


"While the rally remains intact and there are reasons to be long-term bullish here, there are also reasons to not be surprised if we get a correction," said Mangan, who helps oversee $3.7 billion.


In earnings news, Priceline.com gained 2.6 percent to $695.91 after reporting adjusted earnings that beat expectations. TJX Cos Inc jumped 2.5 percent to $44.75 after the retail chain operator posted higher fourth-quarter results.


The S&P retail index <.spxrt> climbed 1.6 percent.


Target Corp offered a cautious outlook for consumer spending in 2013 following a weak holiday quarter. The stock dipped 1.1 percent to $63.32.


First Solar Inc plunged 14 percent to $27.04 after failing to give a full-year earnings and sales outlook, though it also swung to a quarterly profit.


Groupon Inc plunged 21 percent to $4.70 after the bell after reporting its fourth-quarter results.


With 93 percent of the S&P 500 companies having reported results so far, 69.5 percent beat profit expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters, according to Thomson Reuters data.


Fourth-quarter earnings for S&P 500 companies are estimated to have risen 6.2 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


About 6.23 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, slightly below the daily average so far this year of about 6.48 billion shares.


(Editing by Nick Zieminski and Kenneth Barry)



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Balloon Explosion in Egypt Kills at Least 19 Tourists





CAIRO — The explosion of a hot-air balloon over the ancient temples at Luxor killed at least 19 sightseers Tuesday, delivering a grim blow to Egypt’s critical tourism business just as it had begun to show signs of recovery from the shock of the revolution two years ago.




All of those killed were tourists, including nine Chinese from Hong Kong, four Japanese, two French, two Britons, a Hungarian and an Egyptian, Health Ministry officials said. The balloon’s pilot and a British passenger survived by jumping from the balloon’s basket. But the surviving passenger’s wife, also British, died in the blaze.


“It is just another nail in tourism’s coffin,” Hisham A. Fahmy, the chief executive of the American Chamber of Commerce in Egypt, which represents international companies here, said of the crash. “They were probably the only tourists in Luxor as it was.”


Even Egyptians trying to minimize the disaster’s potential effect on the tourist business compared it to the 1997 massacre of 62 people, 58 of them tourists, at one of Luxor’s temples by a group of Islamist militants. At least this was an accident and not terrorism, Egyptian officials said Tuesday. Others noted hopefully that tourism had eventually recovered after 1997.


“I thought that would be the end of tourism,” said Heba Handoussa of the Economic Research Forum here. “But to my surprise, the next year it was back. People seem to take it in stride.”


The tombs and temples of Luxor and the nearby Valley of the Kings are among Egypt’s premier attractions, and hot-air balloon rides over the valley at dawn are a staple of the local tourist trade. In 2008 and 2009, balloons collided with utility poles and crashed to the ground, injuring passengers. But few visitors had raised safety concerns, tour operators said.


The disaster unfolded in just minutes, shortly after 7 a.m., as the balloon was preparing to land in a field of sugar cane. The pilot was pulling a rope to stabilize the balloon when a gas hose ripped and a fire started, security officials said.


The pilot and the passenger who survived quickly escaped over the side of the basket, risking a 30-foot fall. Then escaping gas or hot air from the fire evidently sent the balloon soaring back skyward. Some reports said it had climbed as high as 1,000 feet before a gas cylinder exploded and it burst into flames.


State media reported that some of the dead had been “cremated” in the fireball. The Health Ministry said it would use DNA testing to identify the remains.


The ministers of aviation and tourism said they were traveling to Luxor. Officials started investigations into the crash as well as an examination of the permit for the balloon and the license for its pilot.


Some in Luxor faulted regulators. Tharwat Agami, the chairman of the Luxor tourist industry trade group, accused the aviation ministry of renewing licenses for the balloon operator and others despite their failures to meet safety requirements. Like other forms of law enforcement, balloon regulation and inspection have deteriorated sharply since the revolution, he told the state newspaper Al Ahram.


“As if tourism can take any more!” Mr. Agami said, according to the newspaper. “Where is the inspection of each balloon before takeoff by civil aviation?”


Tourism typically accounted for about 11 percent of Egypt’s gross domestic product before the revolution, economists say. More important, tourism is Egypt’s second-largest source of hard currency, after remittances sent home by Egyptians working abroad. It helps reduce the trade imbalance, supporting the sagging value of the Egyptian pound.


But in the two years of unrest since President Hosni Mubarak was ousted, tourism revenue has plummeted to just a quarter of its former level, said Ms. Handoussa, the economist.


She said government figures, widely believed to understate the malaise, put unemployment at 14 percent, up from 8 percent before the revolt, while the number of Egyptians officially considered to be living in poverty has risen to 25 percent from 20 percent.


Two major European tour operators, TUI of Germany and Thomas Cook of Britain, said around the beginning of this year that they saw signs of recovery in the demand for vacations to North Africa, including Tunisia and Egypt. Tour operators and travel agents say the Red Sea beach resorts, farther from the unrest in Cairo, have suffered far less than other destinations.


But then at the end of January, vandals in Cairo capitalized on the chaos surrounding a street protest to loot and ransack the lobby of the historic Semiramis InterContinental Hotel. It was the first time since Mr. Mubarak’s exit that the unrest had so directly affected a tourist institution. Now the balloon accident may add new concerns about safety to the continuing fears of political instability.


Mina Agnos, a vice president of Travelive, a high-end tour operator based in Athens and Montclair, N.J., said it had stopped marketing trips to Egypt. Each fall in the last two years, seasonal demand would pick up, and then violence would erupt again, as it did around the American Embassy here last September over an online video mocking Islam.


“Something would happen,” she said. “We found that a lot of people who were thinking of going to Egypt ended up going other places.”


Mayy El Sheikh contributed reporting.



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Michelle Williams and Jason Segel Split















02/26/2013 at 07:45 PM EST







Jason Segel and Michelle Williams


AKM-GSI


The fairytale is over for Michelle Williams and Jason Segel.

The Oz the Great and Powerful star and the How I Met Your Mother actor split a few weeks ago after dating for a year, a source confirms to PEOPLE.

The long distance – Williams, 32, is based in New York City, while Segel, 33, primarily resides in Los Angeles – was the reason behind the breakup, the source adds.

Earlier in the month, the actress told In Style that she cherished public support of her relationship.

"If people are happy about it that makes me feel good ... Any kind sentiment that the world can feed back, well, I won't turn it down," she explained.

The couple, who were often seen out and about with 7-year-old Matilda, Williams' daughter with the late Heath Ledger, began sharing a Brooklyn apartment last fall.

Reps for the actors have not commented.

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C. Everett Koop, 'rock star' surgeon general, dies


NEW YORK (AP) — Dr. C. Everett Koop has long been regarded as the nation's doctor— even though it has been nearly a quarter-century since he was surgeon general.


Koop, who died Monday at his home in Hanover, N.H., at age 96, was by far the best known and most influential person to carry that title. Koop, a 6-foot-1 evangelical Presbyterian with a biblical prophet's beard, donned a public health uniform in the early 1980s and became an enduring, science-based national spokesman on health issues.


He served for eight years during the Reagan administration and was a breed apart from his political bosses. He thundered about the evils of tobacco companies during a multiyear campaign to drive down smoking rates, and he became the government's spokesman on AIDS when it was still considered a "gay disease" by much of the public.


"He really changed the national conversation, and he showed real courage in pursuing the duties of his job," said Chris Collins, a vice president of amfAR, the Foundation for AIDS Research.


Even before that, he had been a leading figure in medicine. He was one of the first U.S. doctors to specialize in pediatric surgery at a time when children with complicated conditions were often simply written off as untreatable. In the 1950s, he drew national headlines for innovative surgeries such as separating conjoined twins.


His medical heroics are well noted, but he may be better remembered for transforming from a pariah in the eyes of the public health community into a remarkable servant who elevated the influence of the surgeon general — if only temporarily.


"He set the bar high for all who followed in his footsteps," said Dr. Richard Carmona, who served as surgeon general a decade later under President George W. Bush.


Koop's religious beliefs grew after the 1968 death of his son David in a mountain-climbing accident, and he became an outspoken opponent of abortion. His activism is what brought him to the attention of the administration of President Ronald Reagan, who decided to nominate him for surgeon general in 1981. Though once a position with real power, surgeon generals had been stripped of most of their responsibilities in the 1960s.


By the time Koop got the job, the position was kind of a glorified health educator.


But Koop ran with it. One of his early steps involved the admiral's uniform that is bestowed to the surgeon general but that Koop's predecessors had worn only on ceremonial occasions. In his first year in the post, Koop stopped wearing his trademark bowties and suit jackets and instead began wearing the uniform, seeing it as a way to raise the visual prestige of the office.


In those military suits, he surprised the officials who had appointed him by setting aside his religious beliefs and feelings about abortion and instead waging a series of science-based public health crusades.


He was arguably most effective on smoking. He issued a series of reports that detailed the dangers of tobacco smoke, and in speeches began calling for a smoke-free society by the year 2000. He didn't get his wish, but smoking rates did drop from 38 percent to 27 percent while he was in office — a huge decline.


Koop led other groundbreaking initiatives, but perhaps none is better remembered than his work on AIDS.


The disease was first identified in 1981, before Koop was officially in office, and it changed U.S. society. It destroyed the body's immune system and led to ghastly death, but initially was identified in gay men, and many people thought of it as something most heterosexuals didn't have to worry about.


U.S. scientists worked hard to identify the virus and work on ways to fight it, but the government's health education and policy efforts moved far more slowly. Reagan for years was silent on the issue. Following mounting criticism, Reagan in 1986 asked Koop to prepare a report on AIDS for the American public.


His report, released later that year, stressed that AIDS was a threat to all Americans and called for wider use of condoms and more comprehensive sex education, as early as the third grade. He went on to speak frankly about AIDS in an HBO special and engineered the mailing of an educational pamphlet on AIDS to more than 100 million U.S. households in 1988.


Koop personally opposed homosexuality and believed sex should be saved for marriage. But he insisted that Americans, especially young people, must not die because they were deprived of explicit information about how HIV was transmitted.


Koop's speeches and empathetic approach made him a hero to a wide swath of America, including public health workers, gay activists and journalists. Some called him a "scientific Bruce Springsteen." AIDS activists chanted "Koop, Koop" at his appearances and booed other officials.


"I was walking down the street with him one time" about five years ago, recalled Dr. George Wohlreich, director of the College of Physicians of Philadelphia, a medical society with which Koop had longstanding ties. "People were yelling out, 'There goes Dr. Koop!' You'd have thought he was a rock star."


Koop angered conservatives by refusing to issue a report requested by the Reagan White House, saying he could not find enough scientific evidence to determine whether abortion has harmful psychological effects on women.


He got static from some staff at the White House for his actions, but Reagan himself never tried to silence Koop. At a congressional hearing in 2007, Koop spoke about political pressure on the surgeon general post. He said Reagan was pressed to fire him every day.


After his death was reported Monday, the tributes poured forth, including a statement from New York Mayor Michael Bloomberg, who has made smoking restrictions a hallmark of his tenure.


"The nation has lost a visionary public health leader today with the passing of former Surgeon General C. Everett Koop, who was born and raised in Brooklyn," Bloomberg said. "Outspoken on the dangers of smoking, his leadership led to stronger warning labels on cigarettes and increased awareness about second-hand smoke, creating an environment that helped millions of Americans to stop smoking — and setting the stage for the dramatic changes in smoking laws that have occurred over the past decade."


Dr. Anthony Fauci of the National Institutes of Health taught Koop what was known about AIDS during quiet after-hours talks in the early 1980s and became a close friend.


"A less strong person would have bent under the pressure," Fauci said. "He was driven by what's the right thing to do."


Carmona, a surgeon general years later, said Koop was a mentor who preached the importance of staying true to the science in speeches and reports — even when it made certain politicians uncomfortable.


"We remember him for the example he set for all of us," Carmona said.


Koop's nomination originally was met with staunch opposition. Women's groups and liberal politicians complained Reagan had selected him only because of his conservative views, especially his staunch opposition to abortion.


Foes noted that Koop traveled the country in 1979 and 1980 giving speeches that predicted a progression "from liberalized abortion to infanticide to passive euthanasia to active euthanasia, indeed to the very beginnings of the political climate that led to Auschwitz, Dachau and Belsen."


But Koop, a devout Presbyterian, was confirmed as surgeon general after he told a Senate panel he would not use the post to promote his religious ideology. He kept his word and eventually won wide respect with his blend of old-fashioned values, pragmatism and empathy.


Koop was modest about his accomplishments, saying before leaving office in 1989, "My only influence was through moral suasion."


The office declined after that. Few of his successors had his speaking ability or stage presence. Fewer still were able to secure the support of key political bosses and overcome the meddling of everyone else. The office gradually lost prestige and visibility, and now has come to a point where most people can't name the current surgeon general. (It's Dr. Regina Benjamin.)


Even after leaving office, Koop continued to promote public health causes, from preventing childhood accidents to better training for doctors.


"I will use the written word, the spoken word and whatever I can in the electronic media to deliver health messages to this country as long as people will listen," he promised.


In 1996, he rapped Republican presidential hopeful Bob Dole for suggesting that tobacco was not invariably addictive, saying Dole's comments "either exposed his abysmal lack of knowledge of nicotine addiction or his blind support of the tobacco industry."


He maintained his personal opposition to abortion. After he left office, he told medical students it violated their Hippocratic oath. In 2009, he wrote to Senate Majority Leader Harry Reid, urging that health care legislation include a provision to ensure doctors and medical students would not be forced to perform abortions. The letter briefly set off a security scare because it was hand delivered.


Koop served as chairman of the National Safe Kids Campaign and as an adviser to President Bill Clinton's health care reform plan.


Worried that medicine had lost old-fashioned caring and personal relationships between doctors and patients, Koop opened an institute at Dartmouth College in New Hampshire to teach medical students basic values and ethics. He also was a part-owner of a short-lived venture, drkoop.com, to provide consumer health care information via the Internet.


Koop was the only son of a Manhattan banker and the nephew of a doctor. He said by age 5 he knew he wanted to be a surgeon and at age 13 he practiced his skills on neighborhood cats. He attended Dartmouth, where he received the nickname Chick, short for "chicken Koop." It stuck for life.


He received his medical degree at Cornell Medical College, choosing pediatric surgery because so few surgeons practiced it. In 1938, he married Elizabeth Flanagan, the daughter of a Connecticut doctor. They had four children. Koop's wife died in 2007, and he married Cora Hogue in 2010.


He was appointed surgeon-in-chief at Children's Hospital in Philadelphia and served as a professor at the University of Pennsylvania School of Medicine. He pioneered surgery on newborns and successfully separated three sets of conjoined twins. He won national acclaim by reconstructing the chest of a baby born with the heart outside the body.


Although raised as a Baptist, he was drawn to a Presbyterian church near the hospital, where he developed an abiding faith. He began praying at the bedside of his young patients — ignoring the snickers of some of his colleagues.


___


Contributing to this report were Associated Press writers Wilson Ring in Montpelier, Vt.; Jeff McMillan in Philadelphia; and AP Medical Writer Lauran Neergaard in Washington.


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Wall Street rebounds on Bernanke comments, data

NEW YORK (Reuters) - U.S. stocks rebounded from their worst decline since November on Tuesday after Federal Reserve Chairman Ben Bernanke defended the Fed's bond-buying stimulus and sales of new homes hit a 4 1/2-year high.


The S&P 500 had climbed 6 percent for the year and came within reach of all-time highs before the minutes from the Fed's January meeting were released last Wednesday. Since then, the benchmark S&P 500 has fallen 1 percent.


Bernanke, in testimony on Tuesday before the Senate Banking Committee, strongly defended the Fed's bond-buying stimulus program and quieted rumblings that the central bank may pull back from its stimulative policy measures, which were sparked by the release of the Fed minutes last week.


Bernanke's comments helped ease investors' concerns about a stalemate in Italy after a general election failed to give any party a parliamentary majority, posing the threat of prolonged instability and financial crisis in Europe, and sending the S&P 500 to its worst decline since November 7 in Monday's session.


Bernanke "certainly said everything the market needed to feel in order to get comfortable again," said Peter Kenny, managing director at Knight Capital in Jersey City, New Jersey.


"The fear is we were going to see a rollover, and the first shot over the bow was what we saw out of Italy yesterday with the elections," Kenny said. "When it came to U.S. markets, we saw some of that bleeding stop because our focus shifted from the Italian political circus to Ben Bernanke."


Gains in homebuilders and other consumer stocks, following strong economic data, lifted the S&P 500, and a 5.7 percent jump in Home Depot to $67.56 boosted the Dow industrials. The PHLX housing sector index <.hgx> rose 3.2 percent.


Economic reports that showed strength in housing and consumer confidence also supported stocks. U.S. home prices rose more than expected in December, according to the S&P/Case-Shiller index. Consumer confidence rebounded in February, jumping more than expected, and new-home sales rose to their highest in 4-1/2 years in January.


However, the central bank chairman also urged lawmakers to avoid sharp spending cuts set to go into effect on Friday, which he warned could combine with earlier tax increases to create a "significant headwind" for the economic recovery.


The Dow Jones industrial average <.dji> gained 115.96 points, or 0.84 percent, to 13,900.13 at the close. The Standard & Poor's 500 Index <.spx> rose 9.09 points, or 0.61 percent, to 1,496.94. The Nasdaq Composite Index <.ixic> advanced 13.40 points, or 0.43 percent, to close at 3,129.65.


Despite the bounce, the S&P 500 was unable to move back above 1,500, a closely watched level that was technical support until recently, but could now serve as a resistance point.


The CBOE Volatility Index <.vix> or the VIX, a barometer of investor anxiety, dropped 11.2 percent, a day after surging 34 percent, its biggest percentage jump since August 18, 2011.


The uncertainty caused by the Italian elections continued to weigh on stocks in Europe. The FTSEurofirst-300 index of top European shares <.fteu3> closed down 1.4 percent. The benchmark Italian index <.ftmib> tumbled 4.9 percent.


Home Depot gave the biggest boost to the Dow and provided one of the biggest lifts to the S&P 500 after the world's largest home improvement chain reported adjusted earnings and sales that beat expectations.


Macy's shares gained 2.8 percent to $39.59 after the department-store chain stated it expects full-year earnings to be above analysts' forecasts because of strong holiday sales.


Volume was active with about 7.08 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq, above the daily average of 6.48 billion.


Advancing stocks outnumbered declining ones on the NYSE by a ratio of about 2 to 1, while on the Nasdaq, three stocks rose for every two that fell.


(Reporting by Chuck Mikolajczak; Editing by Jan Paschal; Editing by Jan Paschal)



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2 Palestinian Youths Hurt in Clashes With Israel


Mussa Issa Qawasma/Reuters


A Palestinian protester threw stones during clashes with Israeli soldiers on Monday in Hebron, West Bank, after a funeral for a Palestinian prisoner.







JERUSALEM — Two Palestinian teenagers were seriously injured Monday when Israeli soldiers used live ammunition to disperse a demonstration at a holy site outside Bethlehem, as clashes in the West Bank continued for a fifth day and thousands attended the burial of a 30-year-old Palestinian who died in an Israeli jail over the weekend.




The Palestinian president, Mahmoud Abbas, spoke for the first time on Monday about the prisoner, Arafat Jaradat, saying that Israel must be held responsible for his death and that its leaders were trying to foment chaos rather than work toward peace.


Other Palestinian officials have said Mr. Jaradat died because of torture during interrogation. An autopsy conducted Sunday did not immediately determine the cause of death, but an Israeli official said Monday that a report on the findings should be released by the end of the week and that the police and courts were investigating the death separately.


“Jaradat went to jail and returned back a dead body,” Mr. Abbas said Monday in Ramallah, hours before the teenagers were shot near Bethlehem. “We insist to know how this happened and who did this. We will not let them play in the lives of our sons. They are confronting children and killing them with live ammunition. We will not allow our prisoners to remain in the occupation jails all their lives for things that they did not commit.”


About 10,000 people accompanied Mr. Jaradat’s body from a hospital in Hebron to his family’s home in Sa’ir, a village nearby, and then to the cemetery. The Israeli military closed a main road for the procession, in which members of Al Aksa Martyrs Brigades, the militant wing of the Fatah party, fired guns into the air.


Israel’s prime minister, Benjamin Netanyahu, who sent a message on Sunday to the Palestinian leadership demanding that it restore calm in the West Bank, held security consultations on the matter on Monday, according to a statement from his office. Defense Minister Ehud Barak convened a special meeting on Monday with the military chief of staff and the leaders of Israel’s police force and prison service “during which possible scenarios were introduced,” according to a statement from Mr. Barak’s office, “as well as possible ways to cope with them and maintain security needs while trying to restore the calm on the ground.”


The United States Consulate in Jerusalem limited travel by government employees to the West Bank because of the demonstrations and advised all American citizens to avoid the area and “to exercise an extra measure of caution during this period.”


“The U.S. Consulate General takes this opportunity to remind U.S. citizens that demonstrations, even peaceful ones, can turn violent with little or no warning,” it said in a statement. “U.S. citizens should be aware of their surroundings at all times, and avoid large crowds.”


The Egyptian foreign minister, Mohamed Kamel Amr, called on the international community to take a firm stance against what he described as Israel’s inhumane practices against the Palestinian prisoners, according to the state newspaper, and warned that a continuation of such policies could lead to an explosion in the region.


So far, the situation seems to be on a simmer. Every day since Thursday, demonstrations have occurred in several West Bank cities and villages in which Palestinians have thrown rocks and sometimes gasoline bombs at Israeli soldiers, who generally respond with tear gas, rubber bullets and occasionally water cannons or live ammunition. Most of the demonstrations, including those in Hebron and Beituniya on Monday, have drawn crowds of a few hundred and resulted in a handful of light to moderate injuries.


But more serious clashes broke out near Rachel’s Tomb on Monday afternoon and evening. An Israeli military official who spoke on the condition of anonymity said that soldiers fired .22-caliber rounds at Palestinians who were throwing improvised grenades at worshipers near the tomb, which is next to the Aida refugee camp just outside Bethlehem.


A doctor at Beit Jala Hospital who spoke on the condition that he not be identified said a 13-year-old had been shot in a lung during that protest and was in the intensive care unit Monday night after undergoing surgery. Hours later, a 19-year-old Palestinian was shot as the demonstration raged on, the doctor said.


“He is in a dangerous situation,” the doctor said of the second patient. “Doctors are trying to save his life.”


Khaled Abu Aker contributed reporting from Ramallah, West Bank; Nayef Hashlamoun from Hebron and Sa’ir, West Bank; and Mayy El Sheikh from Cairo.



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PEOPLE Live at the Oscars - Check Out Our Staffers' Tweets!









02/25/2013 at 07:35 PM EST



The Oscars hit the Dolby Theatre in L.A. Sunday night – and PEOPLE was there!

Editor Peter Castro was on the red carpet with Modern Family's Rico Rodriquez for the live pre-show event Backstage Pass – plus we had editors at the after parties and more!

Check out our best Tweets and pics from the show:


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Wall Street trips and falls on cloudy Italian election

NEW YORK (Reuters) - Stocks on Monday suffered their biggest drop since November after a strong showing in Italian elections by groups opposed to the country's economic reforms triggered worry that Europe's debt problems could once again destabilize the global economy.


The decline marks the biggest percentage drop for the benchmark Standard & Poor's 500 Index since November7, and drove the S&P down to its lowest close since January 18. The CBOE Volatility Index <.vix> or VIX, Wall Street's favorite barometer of fear, surged 34 percent, its biggest jump since August 18, 2011.


Selling accelerated late in the trading session after the S&P 500 fell below the 1,500 level, which has acted as a significant support point. Monday marked the S&P's first close under 1,500 since February 4.


Italy's center-left coalition holds a slim lead over former Prime Minister Silvio Berlusconi's center-right bloc in the election for the lower house of parliament, three TV projections indicated. But any government must also command a majority in the Senate, a race that is decided by region.


The resulting gridlock in parliament could lead to new elections and cast into doubt Italy's ability to pay down its debt.


"Europe hasn't gone away as an issue, it is going to hang around, and it is rearing its ugly head today," said Stephen Massocca, managing director of Wedbush Morgan in San Francisco.


"If someone gets elected who is simply not going to play by the rules, what are they going to do? It puts them in a real quandary here because their financial support, their monetary support is all stipulated by the fact that these austerity programs are going to be in place."


Earlier polls pointing to a center-left victory boosted stocks in Milan and other European markets, and also helped lift the S&P 500 to a session high of 1,525.84 on optimism that Italy would continue down its austerity path.


After a strong start to the year, equities have retreated more recently. The S&P 500's slight fall last week was its first weekly drop after a seven-week string of gains.


In Monday's volatile session, banks and other financial stocks were among the worst performers on worries about the sector's exposure to Italy's massive debt. The KBW Bank Index <.bkx> fell 2.7 percent.


The CBOE Volatility Index <.vix> ended at 18.99, up 34.02 percent.


The Dow Jones industrial average <.dji> dropped 216.40 points, or 1.55 percent, to 13,784.17 at the close. The Standard & Poor's 500 Index <.spx> lost 27.75 points, or 1.83 percent, to 1,487.85. The Nasdaq Composite Index <.ixic> fell 45.57 points, or 1.44 percent, to 3,116.25.


Although the overall market lost ground on Monday, there were a few bright spots.


Barnes & Noble Inc shares shot up 11.5 percent to $15.06 after the bookseller's chairman offered to buy its declining retail business.


Amgen Inc shares climbed 3.1 percent to $89.55, after rival Affymax issued a voluntary recall of its only drug, an anemia treatment that competes with Amgen's top-selling red blood cell booster, Epogen. Affymax shares lost 85.4 percent to $2.42.


The FTSEurofirst-300 index of top European shares <.fteu3> edged up 0.04 percent and Italy's main FTSE MIB <.ftmib> ended up 0.7 percent after earlier gaining nearly 4 percent.


Political uncertainty on the home front, though, is also on Wall Street's mind.


U.S. equities will face a test with the looming debate over so-called sequestration - U.S. government budget cuts that will take effect starting on Friday if lawmakers fail to reach an agreement over spending and taxes. The White House issued warnings about the harm the cuts are likely to inflict on the economy if enacted.


"Sitting out there is the one-thousand-pound gorilla - the sequester issue - and certainly nothing is happening there," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.


Lowe's Companies Inc lost 4.8 percent to $35.86 after the home improvement retailer posted fourth-quarter earnings.


With 83 percent of the S&P 500 companies having reported results so far, 69 percent beat profit expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters, according to Thomson Reuters data.


Fourth-quarter earnings for S&P 500 companies are estimated to have risen 6 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


Volume was active with about 7.27 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq, above the daily average of 6.46 billion.


Declining stocks outnumbered advancing ones on both the NYSE and the Nasdaq by a ratio of about 4 to 1.


(Editing by Kenneth Barry, Nick Zieminski and Jan Paschal)



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Kerry’s Meeting With Syrian Opposition at Risk






Pool photo by Jacquelyn Martin

Secretary of State John Kerry spoke to reporters on the way to London on Sunday. Mr. Kerry has said that he has new ideas on how to force President Bashar al-Assad from power in Syria.








Mr. Kerry and foreign ministers from Europe and the Middle East are scheduled to meet in Rome on Thursday with opponents of President Bashar al-Assad of Syria, including Sheik Ahmad Moaz al-Khatib, who leads the opposition. But they are threatening to boycott the conference to protest what they see as fainthearted international support.


To try to rescue the meeting, Robert S. Ford, the American ambassador to Syria and chief envoy to the opposition, was sent to Cairo on Sunday to implore opposition leaders to attend the session in Rome.


“The Syrian opposition leadership is under severe pressure now from its membership, from the Syrian people, to get more support from the international community,” said a senior administration official who was traveling on Mr. Kerry’s plane. “And in that context, there’s quite a bit of internal discussion about the value of going in international conferences.”


The issue upset the first day of a carefully choreographed trip that is intended to introduce Mr. Kerry as the chief American envoy and to give a lift to the diplomatic stalemate on Syria. Mr. Kerry, who took office this month, is traveling to Britain, Germany, France, Italy, Turkey, Egypt, Saudi Arabia, the United Arab Emirates and Qatar over 11 days.


Even before his trip was formally announced, Mr. Kerry raised expectations by saying he had new ideas on how to change Mr. Assad’s calculations that he could remain in power.


Mr. Kerry has not publicly explained the proposals, but they appear to include marshaling support from Russia, which has been providing arms and financial help to Mr. Assad. Toward that end, Mr. Kerry plans to meet in Berlin on Wednesday with Sergey V. Lavrov, Russia’s foreign minister.


The meeting with the Syrian opposition is to be hosted by Italy. Last week, the European Union agreed to extend its embargo on weapons shipments to Syria for another three months, a move that precludes European arms shipments to the opposition.


But the European Union did agree to a British proposal that nonlethal assistance be expanded. As a result, body armor, night-vision goggles, armored vehicles and other equipment can be sent to armed opposition groups in Syria, an American official said.


So far, the Obama administration has not gone that far in its support. While the United States provides nonlethal assistance like computers and radios to the opposition, it has not been willing to provide nonlethal aid to armed factions within Syria, an approach that experts say has limited its influence with these groups.


State Department officials traveling with Mr. Kerry declined to discuss whether the United States would soon be prepared to take that step.


President Obama rebuffed a proposal last year from the State Department, the Pentagon and the C.I.A. that the United States arm and train a cadre of opposition fighters.


With the violence escalating, Aleppo under attack by Scud missiles and members of a quarrelsome Syrian opposition challenging the value of the Rome meeting — which was supposed to be a highlight of Mr. Kerry’s trip — the State Department issued a statement on Saturday evening that condemned the rocket attacks “in the strongest possible terms” and prodded the Syrian opposition to attend the session.


The statement continued, “We look forward to meeting soon with the leadership of the legitimate representative of the Syrian people, the Syrian Opposition Coalition, to discuss how the United States and other friends of the Syrian people can do more to help the Syrian people achieve the political transition that they demand and that they deserve.”


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Channing Tatum & Jenna Dewan-Tatum Show Off Baby Bump at Oscars









02/24/2013 at 06:45 PM EST







Channing Tatum and Jenna Dewan-Tatum


Jason Merritt/Getty


Who is your bump wearing?

Parents-to-be Channing Tatum and Jenna Dewan-Tatum brought a very special guest to Sunday night's 85th Annual Academy Awards – wearing a black lace, backless dress, Dewan-Tatum, 32, showed off her new curves, while husband Tatum revealed where their baby will be born.

"I'm walking the carpet, trying to keep it together tonight but we're good!" a radiant Dewan-Tatum told Ryan Seacrest on the red carpet Sunday night.

When asked by Seacrest if the couple had any plans to slow down for some "family time," Tatum, 32, replied: "We're gonna actually have the baby in London while I'm shooting so there will be no downtime whatsoever after that."

Tatum – who was named PEOPLE's 2012 Sexiest Man Alive – recently told PEOPLE that he's doing his homework before the baby arrives.

"I have never changed a diaper before, so I may need some help learning," the actor said at the time. "I don't have friends who have kids, so it's going to be an interesting experience to learn how to change a diaper."

The couple's first child is due this summer.

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