With record highs in sight, stocks face roadblocks

NEW YORK (Reuters) - If Wall Street needs to climb a wall of worry, it will have plenty of opportunity next week.

Major U.S. stock indexes will make another attempt at reaching all-time records, but the fitful pace that has dominated trading is likely to continue. Next Friday's unemployment report and the hefty spending cuts that look like they about to take effect will be at the forefront.

The importance of whether equities can reach and sustain those highs is more than Wall Street's usual fixation on numbers with psychological significance. Breaking through to uncharted territory is seen as a test of investors' faith in the rally.

"It's very significant," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

"The thinking is, there's just not enough there for an extended bull run," he said. "If we do break through (record highs), then maybe the charts and price action are telling us there's something better ahead."

Flare-ups in the euro zone's sovereign debt crisis and next Friday's report on the U.S. labor market could jostle the market, though U.S. job indicators have generally been trending in a positive direction.

Small- and mid-cap stocks hit lifetime highs in February. Now the Dow Jones industrial average <.dji> and the S&P 500 <.spx> are racing each other to the top. The Dow, made up of 30 stocks, is about 75 points - less than 1 percent - away from its record close of 14,164.53, which it hit on October 9, 2007. The broader S&P is still 3 percent away from its closing high of 1,565.15, also reached on October 9, 2007.

The advantage may be in the Dow's court. So far in 2013, it has gained 7.5 percent, beating the S&P 500 by about 1 percent.

THE RALLY AND THE REALITY CHECK

The Dow's relative strength owes much to its unique make-up and calculation, as well as to investors' recent preference for buying value stocks likely to generate steady reliable gains, rather than growth stocks.

But the more defensive stance illustrates how stock buyers are getting concerned about this year's rally. While investors don't want to miss out on gains, they're picking up companies that are less likely to decline as much as high-flying names - if a market correction comes.

The Russell Value Index <.rav> is up 7.6 percent for the year so far, outpacing the Russell Growth Index's <.rag> 5.7 percent rise. Within the realm of the S&P 500, the consumer staples sector led the market in February, gaining 3.1 percent.

There is some concern that growth-oriented names are being eclipsed by defensive bets, said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati.

"This isn't a be-all and end-all sell signal by any means, but we would feel much more comfortable if some of the more aggressive areas, like technology and small caps, would start to gain some leadership here," Detrick said.

Signs that investors are becoming concerned about the rally's pace is evident in the options market, where the ratio of put activity to call activity has recently shifted in favor of puts, which represent expectations for a stock to fall.

"We are seeing some put hedging in the financials, building up for the past month," said Henry Schwartz, president of options analytics firm Trade Alert in New York.

The put-to-call ratio representing an aggregate of about 562 financial stocks is 1:1, when normally, calls should be outnumbering puts.

Investors have no shortage of reasons to crave the relative safety of blue chips and defensive stocks. Although markets have mostly looked past uncertainty over Washington's plans to cut the deficit, fiscal policy negotiations still pose a risk to equities.

The $85 billion in spending cuts set to begin on Friday is expected to slow economic growth this year if policymakers do not reach a new deal. Markets so far have held firm despite the wrangling in Washington, but tangible economic effects could pinch stock prices going forward.

The International Monetary Fund warned that full implementation of the cuts would probably take at least 0.5 percentage point off U.S. growth this year.

EASY MONEY AND TEPID HIRING

Investors will also take in a round of economic data at a time when concerns are percolating that the market is being pushed up less by fundamentals and more by loose monetary policy around the world.

The main economic event will be Friday's non-farm payrolls report for February. The U.S. economy is expected to have added 160,000 jobs last month, only a tad higher than in January, in a sign the labor market is healing at a slow pace. The U.S. unemployment rate is forecast to hold steady at 7.9 percent.

While lackluster data has been a catalyst in the past for stock market gains as investors bet it would ensure continued stimulus from the Federal Reserve, that sentiment may be wearing thin.

Markets stumbled last week following worries that the Fed might wind down its quantitative easing program sooner than expected.

"It shows the underpinning of the market is being driven at this point by monetary policy," Hellwig said.

With investors questioning what is behind the rally, it will make a run to record highs even more significant, Hellwig added.

"There's smart people that are in the bull camp and the bear camp and the muddle-through camp," Hellwig said. "The fact that you can statistically, using historical evidence, make a case for going higher, lower, or staying the same makes this number very important this time around."

(Wall St Week Ahead runs every Friday. Comments or questions on this column can be emailed to: leah.schnurr(at)thomsonreuters.com)

(Reporting by Leah Schnurr; Additional reporting by Doris Frankel in Chicago; Editing by Jan Paschal)

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French and Chad Forces Bear Down on Militants in Mali

DAKAR, Senegal — The French military struck at Islamist militants dug in along the remote, rocky mountain ranges of northern Mali over the last week, killing scores, a French military spokesman said Friday.

The week’s operations, conducted with Chadian troops, were a further sign that the French military intervention against the jihadists in Mali, initially viewed as a quick strike, was not winding down soon.

Meanwhile, the Chadian president, Idriss Déby Itno, confirmed that Abu Zeid, the most important commander in Al Qaeda’s regional franchise, had been killed in combat, Mr. Déby’s communications director, Dieudonné Djonabaye, said Friday night.

The Algerian newspaper El Khabar asserted that samples from the corpse presumed to be that of Abu Zeid — he was of Algerian birth — had been sent to Algiers for testing against relatives; a senior Algerian official declined to confirm the report on Friday night.

Abu Zeid’s death would represent a significant blow to Al Qaeda in the Islamic Maghreb, as he was considered the toughest, most resilient of the local Qaeda commanders, and the most ruthless. Abu Zeid is held responsible for the executions of at least two Western hostages in 2009 and 2010 — an elderly Frenchman and an elderly Briton — and his Qaeda unit is believed to be holding perhaps half a dozen other Western hostages. In addition, he has an extensive network of contacts throughout the region, allowing him to recruit in many countries, analysts said.

Abu Zeid had been spotted at Timbuktu during the Islamist ascendancy in northern Mali last year, and the harsh Shariah rule instituted there — public whippings, destruction of monuments, banning of music and other leisure activities — is attributed at least in part to him.

Still, hundreds of jihadist fighters remain in the mountains, said a senior official with the Tuareg rebel movement, which is playing a supporting role in the French military campaign. Analysts suggested nonetheless that the French and Chadian successes this week — as many as 130 terrorists were killed in ground and air operations, according to the French spokesman — did not mean the French were getting bogged down in Mali, but rather that intelligence was improving and more extremists were being flushed out of their mountain retreats.

The French have some 1,200 soldiers in the region, and the Chadians 800, and they are concentrating their efforts on a 15-mile zone in the Adrar des Ifoghas, the rocky, barren mountains at Mali’s Algerian border, according to Col. Thierry Burkhard, the French military spokesman.

“From the beginning this has been the refuge of the region’s terrorist groups,” Colonel Burkhard said of the area around Tessalit, a settlement near the Algerian border. “Our objective is to comb through this zone, find the terrorist groups, then neutralize them.”

Colonel Burkhard said French forces alone had killed some 40 jihadists over the last week, while Chadian troops had eliminated perhaps 90. The French said there had been about 60 airstrikes, and about 10 of the jihadists’ vehicles had been destroyed.

“They are hanging on in a very determined fashion,” Colonel Burkhard said. “They are not looking to retreat. They want to hang on to their positions. They’ve been implanted in this region for a long time, and they’ve prepared the terrain. They’ve got foxholes, and they’ve got enough weapons to resist over the long term.”

Some 25 Chadian soldiers were killed in clashes with the jihadists last week — deaths that provoked Mr. Déby to call on other African nations to relieve Chad of some of the burden. Although other countries have deployed in Mali, they are generally well away from the fighting.

French and Chadian forces are carrying on the fight, more or less alone. “It’s not prolonged because of failure,” a Western defense attaché in the Malian capital, Bamako, said Friday night. “They are finding more jihadists. The French are very much keeping the tempo up. They are inflicting significant attrition,” but he added that the jihadists “are proving surprisingly resilient.”

Adam Nossiter reported from Dakar, Senegal, and Maïa de la Baume from Paris. Martin Zoutane contributed reporting from Ndjamena, Chad.

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Taylor Lautner Hurls a Dog Bowl at Nikki Reed in This Unseen Breaking Dawn Clip

Watch your back, Rosalie!

The fictional character, played by Nikki Reed, 24, in the Twilght saga, is attacked in the head by Jacob Black (Taylor Lautner), 21, with a dog bowl in a never-before-seen clip from the extended edition of Breaking Dawn: Part 1.

Rosalie sets down the dog bowl, which contains a hot dog, next to Jacob, telling him, "Enjoy, mongrel," with a smirk.

After taking a bite of the meal, Lautner proceeds to hurl the bowl at her head, as she walks away with her back facing him.

"He hit me in the head with that bowl, but it was a rubber bowl," Reed tells PEOPLE of the prop. "I mean, it doesn't matter what Taylor throws, it's all going to be painful."

The extra clip is a scene that was written up in the original Breaking Dawn book, but never made it to the big screen version. The extended DVD, along with the Breaking Dawn: Part 2 DVD, is available (separately) March 2.

"We love giving the fans any opportunity to see more," Reed says. "And as an actor making these films, you kind of know these stories revolve around the love story with Bella, Edward and Jacob. The books contain a lot more, but the films can only be so long. We shoot a lot of stuff that doesn't necessarily make it into the film, but they're always on the DVD."

Reflecting back on the cast and her time filming, Reed calls their bond "undeniable," saying, "I think that we will all continue to put in the effort. We're always all over the place and it's hard to find each other. It does take work, but I think we all care about each other."

In fact, fellow costar, Peter Facinelli, already has a regular reunion plan.

"Peter was like, 'Hey, should we do like every Sunday brunch?' " Reed says. "I said, 'Sure, if I'm in town, I'm in.' I'm positive there will be a massive reunion. I'm not sure who is going to organize it, but I am happy to."

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WHO: Slight cancer risk after Japan nuke accident

LONDON (AP) — Two years after Japan's nuclear plant disaster, an international team of experts said Thursday that residents of areas hit by the highest doses of radiation face an increased cancer risk so small it probably won't be detectable.

In fact, experts calculated that increase at about 1 extra percentage point added to a Japanese infant's lifetime cancer risk.

"The additional risk is quite small and will probably be hidden by the noise of other (cancer) risks like people's lifestyle choices and statistical fluctuations," said Richard Wakeford of the University of Manchester, one of the authors of the report. "It's more important not to start smoking than having been in Fukushima."

The report was issued by the World Health Organization, which asked scientists to study the health effects of the disaster in Fukushima, a rural farming region.

On March 11, 2011, an earthquake and tsunami knocked out the Fukushima plant's power and cooling systems, causing meltdowns in three reactors and spewing radiation into the surrounding air, soil and water. The most exposed populations were directly under the plumes of radiation in the most affected communities in Fukushima, which is about 150 miles (240 kilometers) north of Tokyo.

In the report, the highest increases in risk are for people exposed as babies to radiation in the most heavily affected areas. Normally in Japan, the lifetime risk of developing cancer of an organ is about 41 percent for men and 29 percent for women. The new report said that for infants in the most heavily exposed areas, the radiation from Fukushima would add about 1 percentage point to those numbers.

Experts had been particularly worried about a spike in thyroid cancer, since radioactive iodine released in nuclear accidents is absorbed by the thyroid, especially in children. After the Chernobyl disaster, about 6,000 children exposed to radiation later developed thyroid cancer because many drank contaminated milk after the accident.

In Japan, dairy radiation levels were closely monitored, but children are not big milk drinkers there.

The WHO report estimated that women exposed as infants to the most radiation after the Fukushima accident would have a 70 percent higher chance of getting thyroid cancer in their lifetimes. But thyroid cancer is extremely rare and one of the most treatable cancers when caught early. A woman's normal lifetime risk of developing it is about 0.75 percent. That number would rise by 0.5 under the calculated increase for women who got the highest radiation doses as infants.

Wakeford said the increase may be so small it will probably not be observable.

For people beyond the most directly affected areas of Fukushima, Wakeford said the projected cancer risk from the radiation dropped dramatically. "The risks to everyone else were just infinitesimal."

David Brenner of Columbia University in New York, an expert on radiation-induced cancers, said that although the risk to individuals is tiny outside the most contaminated areas, some cancers might still result, at least in theory. But they'd be too rare to be detectable in overall cancer rates, he said.

Brenner said the numerical risk estimates in the WHO report were not surprising. He also said they should be considered imprecise because of the difficulty in determining risk from low doses of radiation. He was not connected with the WHO report.

Some experts said it was surprising that any increase in cancer was even predicted.

"On the basis of the radiation doses people have received, there is no reason to think there would be an increase in cancer in the next 50 years," said Wade Allison, an emeritus professor of physics at Oxford University, who also had no role in developing the new report. "The very small increase in cancers means that it's even less than the risk of crossing the road," he said.

WHO acknowledged in its report that it relied on some assumptions that may have resulted in an overestimate of the radiation dose in the general population.

Gerry Thomas, a professor of molecular pathology at Imperial College London, accused the United Nations health agency of hyping the cancer risk.

"It's understandable that WHO wants to err on the side of caution, but telling the Japanese about a barely significant personal risk may not be helpful," she said.

Thomas said the WHO report used inflated estimates of radiation doses and didn't properly take into account Japan's quick evacuation of people from Fukushima.

"This will fuel fears in Japan that could be more dangerous than the physical effects of radiation," she said, noting that people living under stress have higher rates of heart problems, suicide and mental illness.

In Japan, Norio Kanno, the chief of Iitate village, in one of the regions hardest hit by the disaster, harshly criticized the WHO report on Japanese public television channel NHK, describing it as "totally hypothetical."

Many people who remain in Fukushima still fear long-term health risks from the radiation, and some refuse to let their children play outside or eat locally grown food.

Some restrictions have been lifted on a 12-mile (20-kilometer) zone around the nuclear plant. But large sections of land in the area remain off-limits. Many residents aren't expected to be able to return to their homes for years.

Kanno accused the report's authors of exaggerating the cancer risk and stoking fear among residents.

"I'm enraged," he said.

___

Mari Yamaguchi in Tokyo and AP Science Writer Malcolm Ritter in New York contributed to this report.

__

Online:

WHO report: http://bit.ly/YDCXcb

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Czechs Split Deeply Over Joining the Euro

PRAGUE — Vaclav Klaus, the departing president of the Czech Republic, has equated the European Union to the former Soviet bloc, blamed the euro for the Greek crisis and called the single currency a mistake. He has even refused to hang the Union’s gold-starred flag at the Prague Castle, the seat of the Czech president.

So when Mr. Klaus, a Thatcher-loving economist who became a potent spokesman for continental Europhobes, steps down next week to make way for Milos Zeman as president, euro enthusiasts here will rejoice. Mr. Zeman has not only promised to hang the Union’s flag at the castle but has also suggested a referendum on whether to join the euro zone and suggested 2017 as the earliest possible date for entry.

But the celebrating could be premature. While the presidency, a largely ceremonial post, has the power to influence the debate, the Czech Republic remains deeply polarized between a business community clamoring to get into the euro club and skeptics who associate the currency with the economic pain buffeting Europe’s southern tier.

More than 80 percent of Czechs are against entering the euro zone, according to the latest Eurobarometer poll, making the Czechs the strongest opponents among the seven former Soviet bloc members in the European Union that have yet to join. Deeply resistant to embracing the euro’s one-size-fits-all monetary policy and loath to bail out cash-poor countries like Greece, many policy makers here insist that the Czech Republic is a striking example of why life outside the euro is simply better.

“Being inside the euro is not a sign of the quality of a country’s economy — the crisis has proved that,” Mojmir Hampl, 37, vice governor of the Czech National Bank, said in an interview. “The average Czech household says, ‘Thank God we don’t have to pay for these profligate Greeks.”’

Such sentiments are not limited to the Czech Republic, and enthusiasm for the euro is diminishing in most of those former Soviet-bloc countries, according to the Eurobarometer poll. The European Commission, which commissions the poll, noted that 54 percent of people in these countries, which include Poland, Hungary and Romania, think the euro will have negative consequences for their countries. Even in Latvia, which wants to adopt the euro by next year, 68 percent of people believe that joining would constitute losing part of their national identity.

Here in the Czech Republic, pushed and pulled between East and West over the centuries, the national sense of self has also played an important part in stoking ambivalence. Petr Pithart, a lawyer and former prime minister, argued that the antipathy toward the euro was a byproduct of a deep-seated mistrust of the West in the Czech soul, planted in 1938, when France and Britain yielded to Nazi pressure and allowed Germany to annex part of Czechoslovakia. “Those wounds have not completely healed,” he said. “Klaus knew how to exploit this very well.”

Yet Mr. Hampl, an appointee of Mr. Klaus whose current term at the Czech National Bank ends in 2018, said the main reason for resisting the euro came down to hard-headed economics. Mr. Hampl argued that an independent monetary policy had allowed the central bank to cut interest rates in August 2008 after the crisis first hit hard, thereby helping to cushion the country against the worst effects of the downturn.

Moreover, he estimated that being outside the euro zone — and not contributing to the European Union’s bailout fund — had saved the country roughly €280 billion, or about $370 billion, in potential liabilities over a three-year period. “Knowing that we haven’t been saddled with that debt has helped me to sleep at night,” he said.

Yet the Czech Republic has hardly been immune from the European debt crisis, and some economists counter that in a country where 80 percent of exports go the euro zone countries, the economy is inextricably linked to the fate of the euro, even if the Czechs use the koruna instead.

Indeed, the country has slumped into a modest recession since 2011, weighed down by weak demand for Czech products like cars and Bohemian crystal. Consumption at home has also been lackluster as the center-right coalition government has instituted tough austerity measures, including raising sales taxes and slashing spending. Unemployment of about 7.5 percent in December was a far cry from the roughly 25 percent in Spain or Greece, but it has hit especially hard in the poorer parts of the country.

Against that backdrop, euro entry remains a hard sell for officials like Tomas Zidek, the deputy finance minister, who said in an interview that the European Union and the euro were now vastly different propositions than what the Czechs had signed up for when they joined the Union in 2004. The current efforts to shore up the monetary union by integrating banking and fiscal measures, he added, were as ill-advised in an economically diverse bloc as trying to call a Czech pilsner a German beer.

Mr. Zidek acknowledged that the Finance Ministry was under pressure to join the euro from Czech companies that face huge transaction costs because the country is outside the zone. “Companies complain all the time,” he said. “Our exports are hit by the lack of exchange rate stability.”

Skoda, the Czech automobile company that is owned by Volkswagen, said it supported the Czech Republic’s joining the euro, “the faster, the better,” because the company exports 60 percent of its cars to countries in the European Union and does the bulk of its business in euros. Michal Kadera, a senior manager at Skoda, said that production planning for cars took at least two years and that sudden fluctuations in the koruna against the euro made planning much more difficult and expensive.

Tomas Sedlacek, an economist who has advised President Vaclav Havel, said that not being in the euro zone was costing Czech companies billions of korunas a year in hedging costs associated with the fluctuation of the koruna against the euro. An independent monetary policy was no panacea, he added, pointing to Hungary, which has held on to its currency, the forint, and had sought a bailout before Greece.

“Those Czechs like Klaus,” he said, “who think having the koruna has saved us from the crisis, are living in a dream world.”

Hana de Goeij contributed reporting.

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Josh Duhamel Has 'Full Conversations' with His Unborn Child

FameFlynet

Daddy-to-be Josh Duhamel is so excited about welcoming his first child that he’s begun to bond with wife Fergie‘s belly.

“I’ve had full conversations with the baby already,” Duhamel jokes to PEOPLE at Tuesday’s Nickelodeon upfront presentation in New York. “I’m trying my best to communicate from beyond the womb. Whether it can hear me, I don’t know, but I’m talking to it a lot.”

In addition to enjoying his chats with Fergie’s baby bump, the Safe Haven star, 40, admits he loves the Black Eyed Peas singer’s pregnancy glow.

“She looks so beautiful,” he says. “I look at her now as not only as my beautiful wife, but also as the woman carrying our child. That takes our relationship to a whole new level.”

As for dealing with the sleepless nights, diaper duty and constant feedings, the actor claims he’s up for the challenge.

“I actually look forward to that stuff that people warn you about,” he says. “I don’t mind waking up and dealing with the middle of the night stuff. I wake up early anyway. So I’m definitely ready for it. More so than I’ve ever been.”

There is one task Duhamel really wants to be ready for: ”I hope to be a great dad.”

“I have a lot more life experience than I had at 24. I feel like I’m a little more patient and more wise than I was before,” he explains. “It’s easier said than done, but I’m just looking to raise a good person.”

He adds, “When we saw the ultrasound, that thing was moving around a lot. So I think we are going to have our hands full.”

In the meantime, Duhamel will be busy preparing to host Nickelodeon’s 26th annual Kids’ Choice Awards, airing March 23 at 8 p.m..

“It’s truly bonkers what this show is going to be,” he says. “I’m trying to do things as a host that people would never expect me to do. So if people didn’t take me seriously before, they definitely won’t take me seriously now.”

– Paul Chi

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The Lede: Syrians Describe Apparent Missile Strikes on Aleppo

A Human Rights Watch video report on the aftermath of apparent missile strikes in Syria’s largest city, Aleppo.

Human Rights Watch investigators who visited Aleppo, Syria’s largest city, have concluded that the Syrian government fired at least four ballistic missiles into civilian neighborhoods there last week, killing more than 141 people, including 71 children. As my colleague Anne Barnard explained, the rights group released details of the four documented strikes, and a video report, on Tuesday.

On Wednesday, opposition activists added English subtitles to an emotional account of the devastation caused by one missile strike on Aleppo from a young boy who said he survived the bombing, but lost several family members and neighbors.

An interview with a boy who said he had survived a missile attack on a neighborhood in Aleppo.

The original interview with the boy was posted on YouTube on Monday by Orient News, a private Syrian satellite channel that began broadcasting from Dubai before the antigovernment uprising began. Within a week of the first protests in Syria, Ghassan Aboud, the Syrian businessman who owns the channel, told a Saudi broadcaster that senior government officials close to President Bashar al-Assad had threatened to kidnap his journalists if they did not stop covering the demonstrations.

The boy’s account was subtitled by the ANA New Media Association, a group of opposition video activists led by Rami Jarrah, who blogs as Alexander Page.

The new reports come weeks after experts told The Lede that video of a huge explosion at Aleppo University last month suggested that the campus had been hit by a ballistic missile.

When Liz Sly of the Washington Post visited Aleppo’s Ard al-Hamra neighborhood after two missile strikes, residents gave similarly graphic accounts of pulling the mangled bodies of victims from wrecked buildings. The scenes of devastation, she wrote, more closely resembled “those of an earthquake, with homes pulverized beyond recognition, people torn to shreds in an instant and what had once been thriving communities reduced to mountains of rubble.”

Ole Solvang, a Human Rights Watch researcher who helped document the damage in Aleppo, drew attention to video posted online by opposition activists, which is said to show the desperate search for survivors immediately after the strike on Ard al-Hamra.

Video said to show a neighborhood in Aleppo after a missile strike last week.

As Mr. Solvang assessed the wreckage in person on Thursday and Friday, he described the damage to Aleppo and a neighboring town in words and images posted on Twitter.

Visited a site of similar attack in Tel Rifat today. 25 houses destroyed and 3 killed last Monday. Unbelievable. http://t.co/FaFhNFiAsS

— Ole Solvang (@OleSolvang) 22 Feb 13

Today visited site of yesterday’s missile attack on Ard al Hamra in #Aleppo #Syria. Dozens houses destroyed. Unbelievable destruction. @hrw

— Ole Solvang (@OleSolvang) 23 Feb 13

Bodies are still under the rubble. 3 found during our 30 min visit. Casualty # still unclear. #Aleppo #Syria @hrw http://t.co/gaT7COpRT3

— Ole Solvang (@OleSolvang) 23 Feb 13

Late Tuesday, an Aleppo blogger who supported the uprising but has been critical of the armed rebellion on his @edwardedark Twitter feed, reported that another huge blast had shaken the city.

a massive blast shockwave shakes Aleppo city just now. no idea what it is yet #Syria

— edward dark (@edwardedark) 26 Feb 13

Ms. Sly reported on Twitter on Wednesday night that two more missiles were fired at rural Aleppo. “They landed in fields,” she observed. “That’s how accurate they are. Seems a bit pointless.”

Late Wednesday, Mr. Solvang pointed to video posted on YouTube by opposition activists, showing what they said were distant images of a missile being launched from Damascus in the direction of Aleppo.

Video said to show a missile being fired by Syrian government forces outside the capital, Damascus, on Wednesday night.

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Ben Affleck and Jennifer Garner's Son Samuel Turns 1

Mom & Babies
Celebrity Baby Blog

02/27/2013 at 10:00 AM ET

FameFlynet

Look who’s growing up!

His father Ben Affleck (here with his little man in Beverly Hills on Jan. 25) may have won another Oscar (this time for Best Picture), but it’s Samuel‘s recent milestone — he turns 1 today! — that has his family abuzz.

Two days after his parents wrapped up a whirlwind awards season, the tyke headed out with mom Jennifer Garner and big sisters Violet, 7, and Seraphina, 4, to a Brentwood, Calif. toy store Tuesday.

Not sure what cool playthings the family picked up, but we’re positive Samuel’s birthday party will be a homey, low-key affair befitting the Garner-Affleck clan.

And however they decide to celebrate, Ben and Jen’s 1-year-old will continue to be one of their biggest fans.

“He reaches when he sees me and he laughs a lot,” Garner shared. “He thinks I’m super funny. What more do you want?”

PHOTO SPECIAL: Jen & Ben’s Close-knit Clan

– Shanelle Rein-Olowokere

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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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