Stocks end higher in pre-holiday session









The stock market crept higher Wednesday ahead of the Thanksgiving holiday. Major market indexes got a slight lift after news broke of a cease-fire agreement between Israel and Hamas in the Gaza Strip.

The truce was announced by Egypt's foreign minister and confirmed by Israeli Prime Minister Benjamin Netanyahu. A week of fighting has killed more than 140 Palestinians and five Israelis.

The Dow Jones industrial average climbed 48.38 points to 12,836.89. Three of the most expensive stocks in the average — Boeing, IBM and United Technologies — each rose more than 60 cents. Higher-priced stocks in the Dow carry more weight.

The Labor Department said that first-time applications for unemployment benefits fell by 41,000 last week to 410,000. The figure remains temporarily high because of Superstorm Sandy and was in line with what economists had expected.

“The news today didn't mess anything up,” said Harry Clark, CEO of Clark Capital Management, an investment advisory firm in Philadelphia. “With no bad news, this market will drift higher.”

That's partially because investors have stopped worrying as much about the “fiscal cliff” of tax increases and government spending cuts that are set to take effect Jan. 1, Clark said.

Over the past week, congressional Republicans and Democrats have made conciliatory remarks and raised hopes that they will reach a deal to stave off the full effect of the budget-tightening measures.

While the cuts would hurt the economy gradually, they could be enough to push the U.S. back into recession next year, economists have warned.

“Both sides appear to have extended an olive branch,” said JJ Kinahan, chief derivatives strategist at TD Ameritrade. “The assumption now is that, it may not be pretty, but at the end of the day they'll get some compromise worked out.”

In other Wednesday trading, the Standard & Poor's 500 index gained 3.22 points to 1,391.03. Utilities fell the most, while telecommunication companies rose the most, but no category moved more than 0.6 percent.

The Nasdaq composite index rose 9.87 points to 2,926.55. In the bond market, the yield on the benchmark 10-year U.S. Treasury note inched up to 1.68 percent.

The quiet trading followed a largely uneventful Tuesday. The Dow dropped as much as 94 points after a warning from Federal Reserve Chairman Ben Bernanke about federal budget talks, then recovered to end with just a seven-point loss.

The stock market will be closed Thursday for Thanksgiving and will close early Friday. Congress has the week off and will take up budget negotiations after its members return from the break next week.

Among companies making news:

— Deere, the maker of tractors and other farm and construction equipment, dropped 4 percent. It reported a quarterly profit of $1.75 per share, missing Wall Street expectations of $1.88.

— Chipotle Mexican Group, the restaurant chain, climbed 3 percent. It announced late Tuesday that it would buy back an additional $100 million of its own stock. That's in addition to a $100 billion buyback plan launched Oct. 18.

— Zale plunged 30 percent after the jewelry store chain reported a larger loss than analysts had expected. The company, which runs Zales stores and Piercing Pagoda kiosks, posted weaker sales. Jewelry store sales sank during the recession and have yet to recover.

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Feds charge former hedge fund manager in big insider-trading case









WASHINGTON -- Federal prosecutors on Tuesday charged a former hedge fund portfolio manager with securities fraud in connection with what they said was the most lucrative insider-trading case ever prosecuted.


In complaints filed in New York, authorities said investment advisors and hedge funds made more than $276 million in illegal profits or avoided losses by trading before the announcement in 2008 of negative results from clinical trials for an Alzheimer's disease drug being developed by Elan Corp. and Wyeth.


Prosecutors charged Mathew Martoma, a former portfolio manager at CR Intrinsic, an unregistered investment adviser, with securities fraud for allegedly illegally using information about the clinical trial results that he obtained from a neurologist at a hospital involved in the testing.





The criminal complaint did not name the neurologist, which it said was a cooperating witness in the case.


The Securities and Exchange Commission filed a a related civil suit Tuesday against Martoma, CR Intrinsic and Dr. Sidney Gilman, a neurology professor at the University of Michigan Medical School. The SEC suit said Gilman was chairman of the safety monitoring committee overseeing the clinical trials of the Alzheimer's drug.


Martoma met Gilman some time between 2006 and 2008 through paid consultations, the SEC complaint says. "During these consultations, Gilman provided Martoma with material, nonpublic information about the ongoing trial," the SEC complaint said.


In mid-July 2008, "Gilman provided Martoma with the actual, detailed results of the clinical trial" before an official announcement on July 29, 2008, the SEC said.


The FBI, SEC and U.S. attorney's office in New York scheduled a 12:30 p.m. EST news conference to discuss the case.


"The charges unsealed today describe cheating coming and going – specifically, insider trading first on the long side, and then on the short side, on a scale that has no historical precedent," said Preet Bharara, U.S. attorney for Manhattan.  "As alleged, by cultivating and corrupting a doctor with access to secret drug data, Mathew Martoma and his hedge fund benefited from what might be the most lucrative inside tip of all time."


Follow Jim Puzzanghera on Twitter and Google+.


Also:


Senate moves insider trading bill to Obama's desk.


Baseball star Eddie Murray settles insider-trading investigation.


Former Goldman Sachs director Rajat Gupta guilty of insider trading.





http://articles.latimes.com/2012/aug/17/business/la-fi-sec-murray-20120818






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Elmo actor Kevin Clash resigns amid sex allegation

NEW YORK (AP) — Elmo puppeteer Kevin Clash resigned from "Sesame Street" on Tuesday amid allegations he sexually abused underage boys, bringing an end to a 28-year career in which he turned the furry red monster into one of the most beloved — and lucrative — characters on TV and in toy stores.

"Personal matters have diverted attention away from the important work 'Sesame Street' is doing and I cannot allow it to go on any longer," the 52-year-old performer said in a statement. "I am deeply sorry to be leaving and am looking forward to resolving these personal matters privately."

His departure came as a 24-year-old college student, Cecil Singleton, sued Clash for more than $5 million Tuesday, accusing the actor of engaging in sexual behavior with him when he was 15. Singleton charged that Clash made a habit of trolling gay chat lines for underage boys and meeting them for sex.

It was the second such allegation in just over a week. On Nov. 12, a man in his 20s said he had sex with Clash at age 16. A day later, though, the young man recanted, saying their relationship was adult and consensual.

Clash was a young puppeteer at "Sesame Street" in the mid-1980s when was assigned a little-used puppet now known as Elmo and turned him into a star, creating his high-pitched voice and child-like personality. Clash also served as the show's senior Muppet coordinator and Muppet captain, winning 23 daytime Emmy awards and one prime-time Emmy.

In a statement, Sesame Workshop said that "the controversy surrounding Kevin's personal life has become a distraction that none of us want," and that Clash had concluded "he can no longer be effective in his job."

"This is a sad day for Sesame Street," the company said.

Clash did not address the new allegations. He said previously that he had an adult and consensual relationship with the first accuser. The divorced father of a grown daughter, he acknowledged that he is gay.

At a news conference Tuesday, Singleton said he and Clash met on a gay chat line when he was 15, and for a two-week period, they had sexual contact but not intercourse. He said he didn't know what Clash did for a living until he was 19 and Googled the man's name.

"I was shocked when I found out what he did for a living," said Singleton, a student in criminal psychology who lives in New York but would not say where he goes to school.

He said he didn't consider speaking up until he heard about last week's accusation.

"I thought I was a unique circumstance," Singleton said. "I did not know that it was something he had done habitually."

Singleton's lawyer, Jeff Herman, said he had been contacted by two other potential victims and expects additional legal action. Sex with a person under 17 is a felony in New York if the perpetrator is 21 or older.

Elmo has been a major moneymaker for Sesame Workshop. By one estimate, Elmo toys account for one-half to two-thirds of the $75 million in annual sales the Sesame Street toy line generates for Hasbro.

Clash became something of a star himself. In 2006, he published an autobiography, "My Life as a Furry Red Monster," and he was the subject of the 2011 documentary "Being Elmo: A Puppeteer's Journey."

Episodes with Clash performing as Elmo will presumably continue well into 2014. Taping of season No. 44 will wrap by mid-December and will begin airing next September, according to someone close to the show who spoke on condition of anonymity because the person was not authorized to publicly discuss details of its production.

As for who might take over as Elmo, other "Sesame Street" puppeteers have been trained to serve as Clash's stand-in, Sesame Workshop said. "Elmo is bigger than any one person," the company said last week.

On Tuesday, Hasbro echoed that sentiment with its own statement: "We are confident that Elmo will remain an integral part of Sesame Street and that Sesame Street toys will continue to delight children for years to come."

___

AP Television Writer David Bauder and AP Retail Writer Mae Anderson contributed to this report.

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Ecstasy Treatment for Post-Traumatic Stress Shows Promise


Gretchen Ertl for The New York Times


ALTERNATIVE TREATMENT Rick Doblin of the Multidisciplinary Association for Psychedelic Studies, which is financing research into the drug Ecstasy.







Hundreds of Iraq and Afghanistan veterans with post-traumatic stress have recently contacted a husband-and-wife team who work in suburban South Carolina to seek help. Many are desperate, pleading for treatment and willing to travel to get it.




The soldiers have no interest in traditional talking cures or prescription drugs that have given them little relief. They are lining up to try an alternative: MDMA, better known as Ecstasy, a party drug that surfaced in the 1980s and ’90s that can induce pulses of euphoria and a radiating affection. Government regulators criminalized the drug in 1985, placing it on a list of prohibited substances that includes heroin and LSD. But in recent years, regulators have licensed a small number of labs to produce MDMA for research purposes.


“I feel survivor’s guilt, both for coming back from Iraq alive and now for having had a chance to do this therapy,” said Anthony, a 25-year-old living near Charleston, S.C., who asked that his last name not be used because of the stigma of taking the drug. “I’m a different person because of it.”


In a paper posted online Tuesday by the Journal of Psychopharmacology, Michael and Ann Mithoefer, the husband-and-wife team offering the treatment — which combines psychotherapy with a dose of MDMA — write that they found 15 of 21 people who recovered from severe post-traumatic stress in the therapy in the early 2000s reported minor to virtually no symptoms today. Many said they have received other kinds of therapy since then, but not with MDMA.


The Mithoefers — he is a psychiatrist and she is a nurse — collaborated on the study with researchers at the Medical University of South Carolina and the nonprofit Multidisciplinary Association for Psychedelic Studies.


The patients in this group included mostly rape victims, and experts familiar with the work cautioned that it was preliminary, based on small numbers, and its applicability to war trauma entirely unknown. A spokeswoman for the Department of Defense said the military was not involved in any research of MDMA.


But given the scarcity of good treatments for post-traumatic stress, “there is a tremendous need to study novel medications,” including MDMA, said Dr. John H. Krystal, chairman of psychiatry at the Yale School of Medicine.


The study is the first long-term test to suggest that psychiatrists’ tentative interest in hallucinogens and other recreational drugs — which have been taboo since the 1960s — could pay off. And news that the Mithoefers are beginning to test the drug in veterans is out, in the military press and on veterans’ blogs. “We’ve had more than 250 vets call us,” Dr. Mithoefer said. “There’s a long waiting list, we wish we could enroll them all.”


The couple, working with other researchers, will treat no more than 24 veterans with the therapy, following Food and Drug Administration protocols for testing an experimental drug; MDMA is not approved for any medical uses.


A handful of similar experiments using MDMA, LSD or marijuana are now in the works in Switzerland, Israel and Britain, as well as in this country. Both military and civilian researchers are watching closely. So far, the research has been largely supported by nonprofit groups.


“When it comes to the health and well-being of those who serve, we should leave our politics at the door and not be afraid to follow the data,” said Brig. Gen. Loree Sutton, a psychiatrist who recently retired from the Army. “There’s now an evidence base for this MDMA therapy and a plausible story about what may be going on in the brain to account for the effects.”


In interviews, two people who have had the therapy — one, Anthony, currently in the veterans study, and another who received the therapy independently — said that MDMA produced a mental sweet spot that allowed them to feel and talk about their trauma without being overwhelmed by it.


“It changed my perspective on the entire experience of working at ground zero,” said Patrick, a 46-year-old living in San Francisco, who worked long hours in the rubble after the Sept. 11, 2001, attacks searching in vain for survivors, as desperate family members of the victims looked on, pleading for information. “At times I had this beautiful, peaceful feeling down in the pit, that I had a purpose, that I was doing what I needed to be doing. And I began in therapy to identify with that,” rather than the guilt and sadness.


This article has been revised to reflect the following correction:

Correction: November 20, 2012

An earlier version of this article described incorrectly the office arrangement the Mithoefers use to conduct therapy sessions using MDMA. They hold the sessions in an office in a converted house, but they do not conduct the sessions in their home office.



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Stocks close close to break-even









Stocks finish close to break-even
APNewsNow.

%reldate(2012-11-20T21:04:17

Stocks are finishing the day close to break-even.

The Dow Jones industrial average is ending down seven points to 12,789. The Standard & Poor's 500 index rose a fraction of a point to 1,387. And the Nasdaq composite index gained a fraction to 2,916.

Hewlett-Packard was among the biggest losers in the S&P 500. HP announced that a company it bought for $10 billion last year was lying about its finances. The stock fell 12 percent.

The Federal Reserve chairman warned that the Fed doesn't have the tools to offset the impact of the so-called fiscal cliff — the combination of tax increases and government spending cuts set to take effect Jan. 1.

Advancing stocks outnumbered decliners by 5-to-4. Trading volume was lighter than average, about 3 billion shares.

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Judge denies bid for Nativity displays in Santa Monica













Santa Monica


A person jogs by last year's Nativity scene in Palisades Park.
(Gina Ferazzi / Los Angeles Times / November 19, 2012)































































The city of Santa Monica can bar seasonal displays, including a Nativity scene that has appeared in Palisades Park for nearly 60 years, a federal judge ruled Monday.

In a closely watched case that has attracted national attention, Judge Audrey B. Collins denied a request from the Santa Monica Nativity Scenes Committee to erect multiple large displays depicting the story of the birth of Jesus in the park overlooking the ocean. The coalition of churches has erected the displays every December since the 1950s.


But last year, after requests for display spots exceeded the space allotted, the city held a lottery to allocate spaces. Atheists won 18 of 21 spots. A Jewish group won another. The traditional Nativity story that used to take up 14 displays was crammed into two.

Controversy erupted, and as a result, the city decided the lottery would become increasingly costly. Last June, the City Council voted to ban all private unattended displays.





In October, Nativity scene proponents filed suit in federal court to allow the traditional Christian displays to continue. In a 27-page tentative ruling, Collins denied the group permission to erect their displays this year while the case is pending.


"The atheists won," said William Becker, attorney for the Nativity group. He then went on to compare the city to Pontius Pilate, the judge at Jesus' trial, saying: "It's a shame about Christmas. Pontius Pilate was exactly the same kind of administrator."

Santa Monica's attorney, Barry A. Rosenbaum, said the city is "very pleased" with the ruling. The judge, he said, "understood the government interests and that [groups wanting to put up displays] have a number of alternatives to erect displays." 


All the parties are due back in court Dec. 3, when the judge will hear additional arguments in the case.






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MTV special profiles young people with HIV

NEW YORK (AP) — MTV is airing a special next week with profiles of three young people who have the HIV infection, amid worries that some people are taking the condition too casually.

The special, "I'm Positive," is scheduled to air Dec. 1 at 7 p.m. ET/PT. Drew Pinsky, who is one of the show's producers, said that if it does well, he hopes it can become a regular series.

In three decades, infection with the virus that causes AIDS has gone from a virtual death sentence to a chronic condition that can be controlled with early detection and a drug regimen. But even if it doesn't develop into full-blown AIDS, there's still some doubt about the long-term health implications of living with HIV and the drugs designed to keep control of it, Pinsky said.

"People are taking it too casually ... and forgetting about it," Pinsky said.

A generational divide is evident in the profiles on "I'm Positive." California girl Kelly, one of the three subjects, feels in control of the situation despite her infection. The mother of Stephanie, a single Southern girl infected through one instance of unprotected sex, is distraught and thinks her daughter is about to die.

The third profile subject, Otis, had a hard time telling his family that he was HIV positive since it was only a year earlier that he revealed he was gay.

As proven by its programming on teenage pregnancy, MTV finds that this documentary-style programming is a good way to reach its young viewers with a message.

"Young people relate when they see their peers struggling with this phenomenon," Pinsky said.

MTV began running "safe sex" campaigns in 1985, and has been encouraging youngsters to get themselves tested for 15 years in an effort funded together with the Kaiser Family Foundation.

Two in five people infected with HIV each year in the United States are between the ages of 13 and 29, MTV's targeted audience. More than 1.1 million Americans are living with HIV infection, according to the Centers for Disease Control.

___

MTV is owned by Viacom Inc.

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Well: A Fat Dad Thanksgiving

Some of my earliest holiday memories are of spending Thanksgiving in Chicago at my grandmother Beauty’s home. I remember helping baste the turkey with fresh orange juice, herbs and garlic, and sitting on my grandmother’s shiny Formica countertop to mash the fresh pumpkin for the pies. My grandmother’s house always felt warm from the food in the oven and time spent sitting on her lap while the grown-ups sipped their coffee after dinner.

But after we moved to Manhattan when I was 9, Thanksgiving took place at a restaurant with big crowds and an all-you-can-eat buffet. As soon as the hostess would seat us, everyone would rush for the food — as if the restaurant might run out. Nobody talked about how it was prepared or how it smelled. I would watch my overweight dad dash for seconds and thirds of mashed potatoes and sausage stuffing without even taking a breath. When he was done, he always said the same thing: “I can’t believe I ate the whole thing.” When he was on the Atkins diet, which allowed unlimited amounts of protein, he ate even more. My little sister, April, and I had a hard time choosing what we wanted to eat because we were always getting elbowed and bumped in our attempts to squeeze into the food line.

My parents never sat for long at the holiday table, or had a conversation, or talked about what they were thankful for, and I was always left feeling disappointed. I remember listening to the conversation at nearby tables to hear what other families talked about at Thanksgiving. These were the families that went up only once for food and seemed to genuinely enjoy one another’s company and their meal.

Finally, after three long years of pleading, the phone call came: my grandmother was going to brave the trip from Chicago for Thanksgiving. She and Papa were going to take the train. Beauty had never left Chicago and was scared to take a plane, but she knew how terribly I missed her and how important it was to me to have a proper Thanksgiving meal.

Before my grandparents arrived, my sister and I did our best to help clean our house, which was usually messy and a little chaotic. Beauty liked everything in place and tidy, and I wanted to make sure everything was perfect for her visit.

When Beauty and Papa arrived the night before Thanksgiving, my mother took us all in a cab to Columbus Avenue, where New Yorkers would watch all the balloons being blown up the night before the Macy’s parade. Beauty was in heaven as we showed her Central Park, The Museum of Natural History and Isabella’s, a restaurant on Columbus Avenue, where we stopped for hot chocolate as we watched the Kermit the Frog float come to life through the window.

As I was telling Beauty about all my favorite sights in Manhattan, I realized how much I actually loved my new hometown and how independent I had become. I told my grandmother about all the neighborhoods in New York City that I would travel to by myself to buy ingredients for the recipes she sent me. I even learned about new ingredients through my travels around town and my dad’s rotating diets. I could not wait to show her some of my new favorites.

After returning home, we found my grandfather and dad arguing about where our Thanksgiving dinner would be held. My dad wanted to go to our usual restaurant, where there were unlimited amounts of appetizers and desserts, and each table got its own 14-pound turkey. But my grandparents had never had Thanksgiving in a restaurant and, after traveling for 17 hours, they didn’t want to start. My father backed down, but he was disappointed: Thanksgiving was the one holiday he indulged without guilt. My grandfather assured my dad that in 40 years of marriage, he never left the table hungry.

Beauty and I started working on our menu. We had less than 24 hours to prepare our perfect holiday meal. I showed her the recipes I had been saving over the years from popular gourmet and health magazines. There was a creamy butternut squash soup made without heavy cream, and roasted brussels sprouts with a pomegranate reduction. We were salivating as we prepared our shopping list.

As my grandmother and I worked all day, side by side, to create our first homemade Thanksgiving feast in our tiny Manhattan kitchen, my sister watched the parade on television and ran into the kitchen every couple of minutes for tastes. My dad went on multiple grocery store runs to make sure there were no ingredients we were forgetting; and my mother and grandfather stayed clear of the kitchen and argued about things like why my mother did not have a clean coffee pot or why my grandfather wanted dishes and real silverware rather than paper plates.

When dinner was finally ready, Beauty and I set everything out on a metal folding table in our living room. As my dad happily filled his plate with the sweet potato hummus, roasted veggies and turkey, he noticed how beautiful everything looked. He did not even seem to notice the lack of buttered mashed potatoes or sausage stuffing.

For the grand finale, I carefully brought out my homemade pumpkin pie with a graham cracker crust. Instead of sweetening it with sugar, I used ripe bananas, a touch of maple syrup and a hint of cinnamon. As I watched my dad dig into his piece of pie, I smiled as he seemed to savor every bite. I knew exactly what I was thankful for this year.


Hummus à la Sweet Potato: If you are looking for a light, healthy appetizer to get your guests in the holiday spirit, try this sweet potato hummus that is bursting with flavor, spice and color. This protein-filled appetizer has helped my dad control his appetite. He named it “the caviar of hummus,” savoring every bite. Serve it with warm pita, sliced red peppers, cucumbers or celery sticks.


Creamy Cashew Butternut Squash Soup: Growing up, I spent a lot of time in vegetarian restaurants even though I was not vegetarian, just on a quest to discover delicious, healthy foods that would help my dad lose weight and feel good. I was already a fan of butternut squash soup when I was introduced to using cashews as a substitute for cream. This soup is loaded with flavor, fiber and protein. One of my favorite things to do is to ask my guests to figure out the mystery ingredient; nobody ever guesses that I have swapped out the heavy cream for the healthy, raw cashews. This soup is perfect for your vegetarian and vegan guests.


Roasted Brussels Sprouts With a Pomegranate Reduction: If you thought you did not like brussels sprouts, this recipe will definitely change your mind. The first time my grandmother served roasted brussels sprouts to me, I could not stop eating them. When brussels sprouts are roasted, they become crispy on the outside and sweet and delicate on the inside. The addition of a warm pomegranate glaze, and the cool, sweet pomegranate seeds, makes these brussels sprouts a festive delight.


Banana-Infused Pumpkin Pie: I love taking decadent treats and turning them into healthy nutritional powerhouses that allow you to enjoy your dessert without guilt. Here is my favorite dessert: pumpkin pie. Over the years, I have experimented with many different recipes, and this maple-sweetened, banana-infused version with a graham cracker coconut crust, which takes minutes to prepare, is always a crowd pleaser.


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Dow gains 207 in best day since election









The stock market finally shook its post-election slump.

Investors seized on hope that Washington will reach a deal on the federal budget and drove stocks to their biggest gain in two months. A pair of strong corporate earnings reports also helped.

The Dow Jones industrial average closed up 207 points, or 1.7 percent. Since President Barack Obama and a divided Congress were returned to power Nov. 6, the Dow had fallen six out of eight days and slid a total of 650 points.

Obama and congressional leaders are in talks to avoid going over a “fiscal cliff” on Jan. 1, when tax increases and mandatory government spending cuts are set to take effect.

While Obama and Republicans appear at odds on whether tax rates for the wealthiest Americans should rise, lawmakers suggested over the weekend that progress is possible.

“I can tell you that the fiscal cliff is focusing the mind,” said Illinois Sen. Richard Durbin, a Democrat, said on CNN's “State of the Union.” He said he had heard from Republicans “the beginning of a negotiation.”

Comments like those comforted investors, who are grasping for signs that the negotiations might go somewhere.

“It is quite clear that both sides want to come to a compromise and that a reasonable compromise is available,” David Kelly, chief global strategist for J.P. Morgan Funds, wrote in a note to clients.

Other financial analysts noted that there have been few substantive developments to drive the market's swings, and suggested the market's surge will be short-lived.

“I don't think anything has changed. It's just the talk from day to day,” said Stephen Carl, principal and head equity trader at The Williams Capital Group, an investment bank. “We'll see what happens tomorrow.”

This week's market will be tougher to decipher, Carl said, because volume is increasingly light leading up to the Thanksgiving holiday. Big price swings are more likely when there are fewer buyers and sellers in the market.

The Standard & Poor's 500 index rose 27.01 points, or 2 percent, to 1,386.89. The Nasdaq composite average gained 62.94, or 2.2 percent, to 2,916.07.

The S&P 500 and Nasdaq were lifted by Apple, which had its biggest one-day gain since April. It rose $38.05, or 7.2 percent, to $565.73. Some analysts cast doubt on a sell-off that had pushed the stock down more than 20 percent from its recent peak.

Corporate earnings reports also boosted the indexes. Lowe's said its third-quarter profit surged 76 percent. That followed a strong report from Home Depot last week. Lowe's rose $1.98, or 6.2 percent, to $33.96.

Tyson Foods, the country's biggest meat company, beat analysts' expectations for its quarterly earnings. Tyson added $1.84, or 10.9 percent, to $18.72.

Materials stocks, a category that includes foresting companies, metal producers and miners, soared, supported by the latest sign that a recovery in the housing market has stabilized.

The National Association of Realtors said sales of previously occupied homes in the U.S. rose in October, helped by a stronger job market and record-low mortgage rates. The pace of sales is roughly 11 percent higher than a year ago.

Stocks fell in each of the past four weeks as traders fretted about the possibility that lawmakers will fail to prevent the spending cuts and tax increases from taking effect.

Economists have warned that the hit to the economy could total $700 billion for 2013 and push the United States back into recession, although the damage from the “cliff” would come slowly, and lawmakers could always reach a deal after Jan. 1.

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Feinstein has 'concern' about Rice's Benghazi talking points









Sen. Dianne Feinstein said Sunday that she has initiated a review of talking points used by U.N. Ambassador Susan Rice on the attack on the American diplomatic facility in Libya, with the goal of determining why the public comments appeared to conflict with the initial assessment of U.S. intelligence sources.


Feinstein, chair of the Senate Intelligence Committee, defended Rice against what she called the “politicization” of her comments on the battery of Sunday news shows in the wake of the Sept. 11 attack that led to the death of four Americans, including Ambassador Chris Stevens.


But the California senator also said she had “some concern” with the process that produced the unclassified “speaking points” that Rice worked off of, in which she said it was the administration’s preliminary view that the attacks were a spontaneous reaction to an anti-Islamic video, rather than a planned terrorist attack.





Feinstein, appearing on NBC’s “Meet the Press,” said that the now-former director of the Central Intelligence Agency, David H. Petraeus, had “very clearly said that it was a terrorist attack” in a meeting with lawmakers the day after the attack in Benghazi.


PHOTOS: U.S. ambassador killed in Libya


Asked then why Rice would not call the attack "terrorism" days later, Feinstein said it was because Petraeus’ view was based on information that was not yet cleared for public review.


“She could speak publicly only on unclassified speaking points. I have some concern with those speaking points,” Feinstein said. “We gave the direction yesterday that this whole process is going to be checked out. We are going to find out who made changes in the original statement. Until we do, I really think it's unwarranted to make accusations.”


Rep. Mike Rogers (R-Mich.), chair of the House Intelligence Committee, stopped short of saying information was withheld from initial talking points for political reasons.


Still, he said, “I know the narrative was wrong, and the intelligence was right.”


“The narrative, as it went from at least the CIA and other intelligence agencies, was accurate,” he said. “There were some policy decisions made based on the narrative that was not consistent with the intelligence that we had. That's my concern, and we need to say hey, we need to figure out how that happened.”


The episode involving Rice’s testimony on the Sept. 14 news shows is at the heart of Republicans’ questioning the administration’s handling of the Benghazi attack. More recently, it has become the basis for some lawmakers vowing to block the potential nomination of Rice to replace Hillary Rodham Clinton as secretary of State in President Obama’s second term.


Feinstein said it was not right for Rice to be “pilloried” for comments that were consistent with the approved statement she was given to speak off of. Sen. Lindsay Graham (R-S.C.) said that in considering a possible Rice nomination he was “not going to give her a plus for passing on a narrative that was misleading to the American people.”


PHOTOS: 2016 presidential possibilities


“I am very disappointed in Susan Rice … telling a story that was disconnected from reality that did make the president look good at a time when, quite frankly, the narrative should have been challenged not reinforced that Al Qaeda was dismantled,” he said.


Rep. Peter King (R-N.Y.) said that before appearing on the television shows, Rice should have had a fuller understanding of events.


“She certainly could have gotten the classified briefings. She would have sat down with the National Security Council, and she would have known that those talking points had been watered down, and she could have caveated that in her statement, which she didn't,” King said on ABC’s “This Week.” “President Obama said, don't blame Susan Rice because she had nothing to do with Benghazi. Then why did they send her out as the representative to the American people?”


Sen. John McCain (R-Ariz.) said on CBS’ “Face the Nation” that Rice has “a lot of explaining to do,” and should explain her comments if she is nominated.


“They said they wanted to not give classified assessment of what happened because they didn’t want to betray sources. Well if the classified assessment changed the unclassified assessment, then why in the world would you keep that information from the American people,” McCain said.


Sen. Dick Durbin (D-Ill.), a member of the Foreign Relations Committee, said it would be “totally unfair” to hold Rice responsible for simply relaying information she was given. He also accused McCain and Graham of hypocrisy for using the incident to potentially block a Rice nomination.


“Eight years ago when President Bush suggested Condoleezza Rice for secretary of State, some people said, ‘Well wait a minute, wasn’t she part of misleading the American people about intelligence information that led to our invasion of Iraq?’ And it was Sen. McCain and Sen. Graham who stood up and said, ‘Don’t hold her accountable for the intelligence that was given to her,’” Durbin said.


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michael.memoli@latimes.com


Twitter: @mikememoli





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