Wall Street edges up in face of Apple decline


NEW YORK (Reuters) - The Dow and S&P 500 advanced on Thursday, with the benchmark S&P index on track for its first seven-day streak of gains in over six years as solid economic data managed to outweigh a steep decline in Apple shares.


Apple Inc dropped 10.4 percent to $460.69 after the technology giant missed Wall Street's revenue forecast for a third straight quarter as iPhone sales were poorer than expected, lending credence to recent concerns its days as the dominant player in consumer electronics may be on the wane.


The drop wiped out roughly $50 billion in Apple's market capitalization to $432 billion, leaving the company vulnerable to losing its status as the most valuable U.S. company to second place ExxonMobil Corp, at $417 billion.


A trio of economic reports helped buoy the market, with data showing a decline in weekly jobless claims and an increase in manufacturing, while a gauge of future economic activity climbed.


"The claims numbers are clearly a big surprise and were very good numbers - they imply we may have a good employment number for the month of January," said Hugh Johnson, chief investment officer of Hugh Johnson Advisors LLC in Albany, New York.


"You have Apple and technology on the one side and the rest of the market on the other side."


The gains marked the first time the S&P 500 had risen above 1,500 since December 12, 2007 and put the index on pace for its seventh straight advance, its longest streak since October 2006.


The advance for the S&P, and muted declines in the Nasdaq in spite of the decline in Apple, were viewed as a positive sign, as investors take encouragement from an improving global economy and move into stocks more closely tied to economic fortunes, such as industrials.


General Electric rose 0.5 percent to $22.06 and United Parcel Service gained 2.4 percent to $82.30. Of the 10 major S&P sectors, only technology, off 1.5 percent, was lower.


The Dow Jones industrial average gained 58.82 points, or 0.43 percent, to 13,838.15. The Standard & Poor's 500 Index added 1.78 points, or 0.12 percent, to 1,496.59. The Nasdaq Composite Index dropped 14.25 points, or 0.45 percent, to 3,139.42.


The domestic data meshed with those overseas showing growth in Chinese manufacturing accelerated to a two-year high this month and a buoyant Germany took the euro zone economy a step closer to recovery.


Apple's disappointing results drew a round of price-target cuts from brokerages. At least 14 brokerages, including Barclays Capital, Credit Suisse and Deutsche Bank, cut their price target on the stock by $142 on average. Morgan Stanley removed the stock from its 'best ideas' list.


In contrast to Apple, Netflix Inc surprised Wall Street Wednesday with a quarterly profit after the video subscription service added nearly 4 million customers in the U.S. and abroad. Shares surged 37.6 percent to $142.10, its biggest percentage jump ever.


Diversified U.S. manufacturer 3M Co reported a 3.9 percent rise in profit, meeting expectations, on solid growth in sales of its wide array of products, which range from Post-It notes to films used in television screens. The shares slipped 0.2 percent to $99.28.


Corporate earnings have helped drive the recent stock market rally. Thomson Reuters data through early Thursday showed that of the 133 S&P 500 companies that have reported earnings, 66.9 percent have exceeded expectations, above the 65 percent average over the past four quarters.


(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)



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Azarenka eludes chokehold, gains Australian final


MELBOURNE, Australia (AP) — Sloane Stephens sat for nine minutes, mostly staring at the court and trying to forget the curious timing of Victoria Azarenka's medical timeout.


She may have been the only one trying to ignore it.


The 19-year-old American had just saved five match points and broken Azarenka. But she knew she had to hold serve to stay in her first Grand Slam semifinal whenever Azarenka — the No. 1 player and defending Australian Open champion — returned to Rod Laver Arena.


The restless murmuring in the crowd gave way to slow claps. Why had Azarenka chosen that very moment for a medical break?


Azarenka eventually hustled onto the court, and Stephens won only three more points.


"I almost did the choke of the year," Azarenka said in a frank admission during an on-court interview. "At 5-3, having so many chances, I couldn't close it out."


The crowd that had cheered wildly for Stephens, only 25 hours after she ousted an injured Serena Williams, gave Azarenka tepid applause as she left the court. She'll face 2011 finalist Li Na in the final Saturday night. Given the support Li enjoyed in her 6-2, 6-2 win over No. 2-ranked Maria Sharapova, there's no question which player the crowd will favor in the title match.


Azarenka's immediate post-match remarks suggest she panicked after failing to convert five match points, her forehand misfiring. She had little trouble finishing the match after she came back, and the No. 29-seeded Stephens had cooled off.


"I just felt a little bit overwhelmed. I realized I'm one step away from the final and nerves got into me for sure," Azarenka said.


The 23-year-old Belarusian said she was later compelled to explain that she misunderstood the question in the on-court interview, and she wanted to dispel the perception that her medical timeout amounted to little more than gamesmanship.


"I understand the point of people maybe not understanding what I said; me not understanding what I've been asked," she said during an official news conference more than two-thirds devoted to questions on her medical timeout. "So I'm just glad that I'm here, you know, to make everything clear.


"You know, I think you cannot really judge by (a) few words. The situation had to be explained."


Medical staff said Azarenka had timeouts for treatment of left knee and rib injuries. The rib needed to be manipulated because it was affecting her breathing. Tournament director Craig Tiley said Azarenka hadn't broken any rules.


Azarenka hadn't helped herself in a second television interview after the match when she said she couldn't breathe.


"I had chest pains," she said. "It was like I was getting a heart attack."


She tried to allay any negative perception with her explanation that the choking was related to shortness of breath from the rib injury, not her faltering game.


"When you cannot breathe you start to panic," she said. "I was really panicking, not because I couldn't convert my match point. That's not the case. I mean, I'm experienced enough to go over those emotions. But when you cannot breathe, when something's really blocking you, the stress — that was the stress I was talking about.


"What I said — that I was stressed out and choked — was not because I couldn't finish my shot. It was just so stressing me out the pain that I had that, maybe it was overreaction, but I just really couldn't breathe."


Azarenka had retired during previous Grand Slam matches, including a fourth-round match against Serena Williams at the 2009 Australian Open. But with a second major title so close, and the fact she needed to reach the final to retain the No. 1 ranking, she desperately didn't want to quit this time.


For her part, Stephens seemed sympathetic. She had to wait through a medical timeout Wednesday when Williams received treatment for a sore back — the 15-time major winner injured herself after leading by a set and a break. Another rival earlier in the tournament took a long break between sets for other reasons.


"I mean, when you take a medical break or timeout, obviously it's for a reason," she said. "I mean, just another something else that happens. If it was one of my friends, I would say, 'Oh, my God, that sounds like a PP, which is a personal problem. Other than that, it's just unfortunate."


Besides, Stephens said, it didn't affect the outcome of the match.


"No, not at all. She played obviously a really good match," she said. "First set she played awesome; got close in the second. It didn't go my way, but I wouldn't say at all what happened affected the match."


Novak Djokovic dispensed with No. 4-seeded David Ferrer 6-2, 6-2, 6-1 in the night match, saying he "played perfectly" to reach his third consecutive Australian Open title. Then he dispensed some medical advice of his own.


The Serb, who won the Australian titles in 2008, 2011 and 2012, wore a white shirt with a red cross on the back, pretending to be a doctor to treat Henri Leconte during a legends doubles match at Rod Laver Arena.


He's relaxed now that he has an extra day to prepare for Sunday's final. Djokovic will next play the winner of Friday's semifinal between No. 2 Roger Federer, a four-time Australian Open champion, and No. 3 Andy Murray, the U.S. Open champion.


Djokovic lost only seven points in 11 service games against Ferrer, and hit 30 crisp, clean winners in an almost flawless performance.


"I cannot remember the last time I played so well," Djokovic said. "I've played many great matches, but this one stands out. Hopefully, I can play the same level on Sunday."


He played confidently in the first two sets, and was sublime in the third. Even Ferrer, who has now lost five Grand Slam semifinals and never reached a championship match, was surprised.


After hitting a forehand a fraction wide of the line and losing his challenge in a review, Ferrer double-faulted to give Djokovic match point. The errors were a measure of just how much pressure Djokovic was applying.


Right after his semifinal, Djokovic started playing mind games leading to the final.


"Federer-Murray, when they're playing it's always very close," he said, confirming he'd be closely watching the match. "I wouldn't give the role of the favorite to either of them. I expect to enjoy it. Whoever I play against, I'm going to be ready."


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Neanderthal cloning? Pure fantasy




A display of a reconstruction of a Neanderthal man and boy at the Museum for Prehistory in Eyzies-de-Tayac, France.




STORY HIGHLIGHTS


  • Arthur Caplan: It would be unethical to try and clone a Neanderthal baby

  • Caplan: Downsides include a good chance of producing a baby that is seriously deformed

  • He says the future belongs to what we can do to genetically engineer and control microbes

  • Caplan: Microbes can make clean fuel, suck up carbon dioxide, clean fat out of arteries




Editor's note: Arthur Caplan is the Drs. William F and Virginia Connolly Mitty professor and director of the Division of Bioethics at New York University Langone Medical Center.


(CNN) -- So now we know -- there won't be a Neanderthal moving into your neighborhood.


Despite a lot of frenzied attention to the intentionally provocative suggestion by a renowned Harvard scientist that new genetic technology makes it possible to splice together a complete set of Neanderthal genes, find an adventurous surrogate mother and use cloning to gin up a Neanderthal baby -- it ain't gonna happen anytime soon.


Nor should it. But there are plenty of other things in the works involving genetic engineering that do merit serious ethical discussion at the national and international levels.



Arthur Caplan

Arthur Caplan



Some thought that the Harvard scientist, George Church, was getting ready to put out an ad seeking volunteer surrogate moms to bear a 35,000-year-old, long-extinct Neanderthal baby. Church had to walk his comments back and note that he was just speculating, not incubating.


Still cloning carries so much mystery and Hollywood glamour thanks to movies such as "Jurassic Park," "The Boys From Brazil" and "Never Let Me Go" that a two-day eruption of the pros and cons of making Neanderthals ensued. That was not necessary. It would be unethical to try and clone a Neanderthal baby.



Why? Because there is no obvious reason to do so. There is no pressing need or remarkable benefit to undertaking such a project. At best it might shed some light on the biology and behavior of a distant ancestor. At worst it would be nothing more than the ultimate reality television show exploitation: An "Octomom"-like surrogate raises a caveman child -- tune in next week to see what her new boyfriend thinks when she tells him that there is a tiny addition in her life and he carries a small club and a tiny piece of flint to sleep with him.


The downsides of trying to clone a Neanderthal include a good chance of killing it, producing a baby that is seriously deformed, producing a baby that lacks immunity to infectious diseases and foods that we have gotten used to, an inability to know what environment to create to permit the child to flourish and a complete lack of understanding of what sort of behavior is "normal" or "appropriate" for such a long-extinct cousin hominid of ours.


When weighed against the risks and the harm that most likely would be done, it would take a mighty big guarantee of benefit to justify this cloning experiment. I am willing to venture that the possible benefit will never, ever reach the point where this list of horrible likely downsides could be overcome.




Even justifying trying to resurrect a woolly mammoth, or a mastodon, or the dodo bird or any other extinct animal gets ethically thorny. How many failures would be acceptable to get one viable mastodon? Where would the animal live? What would we feed it? Who would protect it from poachers, gawkers and treasure hunters? It is not so simple to take a long dead species, make enough of them so they don't die of isolation and lack of social stimulation and then find an environment that is close enough and safe enough compared with that which they once roamed.


In any event the most interesting aspects of genetic engineering do not involve making humans or Neanderthals or mammoths. They involve ginning up microbes to do things that we really need doing such as making clean fuel, sucking up carbon dioxide, cleaning fat out of our arteries, giving us a lot more immunity to nasty bacteria and viruses and helping us make plastics and chemicals more efficiently and cheaply.


In trying to make these kinds of microbes, you can kill all you want without fear of ethical condemnation. And if the new bug does not like the environment in which it has to exist to live well, that will be just too darn bad.


The ethical challenge of this kind of synthetic biology is that it can be used by bad guys for bad purposes. Biological weapons can be ginned up and microbes created that only infect people with certain genes that commonly associate with racial or ethnic groups.


Rather than worry about what will happen to real estate values should a new crop of "Flintstones" move in down the street, our public officials, religious groups and ethicists need to get serious about how much regulation the genetic engineering of microbes needs, how can we detect what terrorists might try to use, what sort of controls do we need to prevent accidents and who is going to pay if a bug turns out to cause more harm than good.


We love to think that the key to tomorrow lies in what humanity can be designed or empowered to do. Thus, the fascination with human cloning. In reality, at least for a long time to come, the future belongs to what we can do to design and control microbes. That is admittedly duller, but it is far better to follow a story that is true than one such as Neanderthal cloning that is pure, speculative fantasy.


Follow @CNNOpinion on Twitter.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Arthur Caplan.






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Chicago man gets 35 years for role in Mumbai terror attack








David Coleman Headley, the terrorist who played a key planning role in the Mumbai massacre that killed more than 160 people in 2008, was sentenced today in Chicago’s federal court  to 35 years in prison.


U.S. District Judge Harry Leinenweber could have imposed a life sentence but chose the sentence recommended by federal prosecutors who wanted Headley rewarded for his extensive cooperation in spite of his help in the deadly attacks in India.

Before imposing the 35-year prison term, the judge said he wanted to make sure Headley, 52, is "never in a position again to commit a terrorist attack."

Leinenweber was skeptical of a letter that Headley recently wrote to him. "I don't have any faith in Mr. Headley when he says he's a changed person," the judge said.

Headley should be "under lock and key for the rest of his life," Leinenweber said.


Earlier, a victim of the terror attack told the judge how surprised she was by the youth of the terrorists who stormed into a hotel’s first-floor cafe while she was eating there.

Linda Ragsdale, a Nashville woman who was shot in the back during the 2008 rampage, recalled wondering how a man as young as her son could kill innocent people.  Holding back tears, Ragsdale described a barrage of bullets so intense that "waves of heat clouded" her vision.

"I know what a bullet could do to every part of the human body," Ragsdale said. "I know the sound of life leaving a 13-year-old child. These are things I never needed to know, never needed to experience."

Ragsdale also read from a statement written by another survivor of the shooting at the Oberoi Hotel who said it would be an "appalling dishonor" if Headley was sentenced to the 30 to 35 years in prison recommended by federal prosecutors.

But former U.S. Attorney Patrick Fitzgerald, making a surprise appearance at the sentencing hearing, told Leinenweber he should consider the “unusual nature” of Headley’s cooperation even though Headley was involved in a “very, very heinous crime.”

On the night of his arrest at O’Hare International Airport, Headley “freely admitted” his role in the Mumbai massacre within half an hour of being given his Miranda rights, Fitzgerald said.

Headley, 52,  appearing amid heightened security in Leinenweber’s courtroom, faced up to life in prison. He pleaded guilty to scouting out sites to be targeted in the terrorist attack that killed more than 160 people – including six Americans -- in India’s largest city. He also admitted playing a similar role in an aborted plot to storm a Danish newspaper and behead staffers in retaliation for printing a cartoon of the Prophet Muhammad.

Federal prosecutors have cited Headley’s extraordinary cooperation for seeking a sentence of 30 to 35 years in prison.

Headley, who was arrested at O'Hare as he prepared to fly overseas, detailed the inner-workings of Lashkar-e-Taiba, the Pakistani terror organization that planned the Mumbai attacks. His information led to charges against seven terrorist figures, including his childhood friend from a Pakistani school, Tahawwur Rana, a former Chicago businessman.

Headley was the key witness at the trial of Rana, who was convicted of aiding the Denmark plot and providing support to Lashkar.  Judge Leinenweber sentenced him  last week to 14 years in prison, about half what prosecutors sought.

Headley, an American citizen of Pakistani descent, came to the United States at age 17 and was twice convicted of drug smuggling in the late 1980s. He later agreed to work as an informant for the DEA. Headley also revealed during testimony  at Rana’s trial that there was an overlap between his work for the DEA and his early days with Lashkar.

Headley became involved with Lashkar, a radical group that opposes Indian rule in divided Kashmir, around 2000, attending training camps between 2002 and 2005. He had moved to Chicago by 2009 and reconnected with Rana.

Though embraced by Rana’s family, Headley lived a very different life that included multiple wives and apparently indoctrinating even his children with his ideologies. His 5-year-old son once dropped to the ground in a Chicago park and pretended to fire a weapon after a soccer coach yelled "shoot, shoot!" to him during a game, Headley testified at Rana’s trial.

The charges against Headley and Rana likely represented the most significant terrorism case brought during Fitzgerald’s nearly 11 years as Chicago’s chief federal prosecutor.

Bomb-sniffing dogs checked the coats and bags of all the spectators entering Leinenweber’s courtroom today.  At one point, more than 100 people had lined up to attend the sentencing.


asweeney@tribune.com






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North Korea to target U.S. with nuclear, rocket tests


SEOUL (Reuters) - North Korea said on Thursday it would carry out further rocket launches and a nuclear test that would target the United States, dramatically stepping up its threats against a country it called its "sworn enemy".


The announcement by the country's top military body came a day after the U.N. Security Council agreed to a U.S.-backed resolution to censure and sanction North Korea for a rocket launch in December that breached U.N. rules.


North Korea is not believed to have the technology to deliver a nuclear warhead capable of hitting the continental United States, although its December launch showed it had the capacity to deliver a rocket that could travel 10,000 km (6,200 miles), potentially putting San Francisco in range, according to an intelligence assessment by South Korea.


"We are not disguising the fact that the various satellites and long-range rockets that we will fire and the high-level nuclear test we will carry out are targeted at the United States," North Korea's National Defence Commission said, according to state news agency KCNA.


North Korea is believed by South Korea and other observers to be "technically ready" for a third nuclear test, and the decision to go ahead rests with leader Kim Jong-un, who pressed ahead with the December rocket launch in defiance of the U.N. sanctions.


China, the one major diplomatic ally of the isolated and impoverished North, agreed to the U.S.-backed resolution and it also supported resolutions in 2006 and 2009 after Pyongyang's two earlier nuclear tests.


Thursday's statement by North Korea represents a huge challenge to Beijing as it undergoes a leadership transition, with Xi Jinping due to take office in March.


China's Foreign Ministry called for calm and restraint and a return to six-party talks, but effectively singled out North Korea, urging the "relevant party" not to take any steps that would raise tensions.


"We hope the relevant party can remain calm and act and speak in a cautious and prudent way and not take any steps which may further worsen the situation," ministry spokesman Hong Lei told reporters at a regular press briefing.


North Korea has rejected proposals to restart the talks aimed at reining in its nuclear capacity. The United States, China, Russia, Japan and the two Koreas are the six parties involved.


"After all these years and numerous rounds of six-party talks we can see that China's influence over North Korea is actually very limited. All China can do is try to persuade them not to carry out their threats," said Cai Jian, an expert on Korea at Fudan University in Shanghai.


Analysts said the North could test as early as February as South Korea prepares to install a new, untested president or that it could choose to stage a nuclear explosion to coincide with former ruler Kim Jong-il's Feb 16 birthday.


"North Korea will have felt betrayed by China for agreeing to the latest U.N. resolution and they might be targeting (China) as well (with this statement)," said Lee Seung-yeol, senior research fellow at Ewha Institute of Unification Studies in Seoul.


U.S. URGES NO TEST


Washington urged North Korea not to proceed with a third test just as the North's statement was published on Thursday.


"Whether North Korea tests or not is up to North Korea," Glyn Davies, the top U.S. envoy for North Korean diplomacy, said in the South Korean capital of Seoul.


"We hope they don't do it. We call on them not to do it," Davies said after a meeting with South Korean officials. "This is not a moment to increase tensions on the Korean peninsula."


The North was banned from developing missile and nuclear technology under sanctions dating from its 2006 and 2009 nuclear tests.


A South Korean military official said the concern now is that Pyongyang could undertake a third nuclear test using highly enriched uranium for the first time, opening a second path to a bomb.


North Korea's 2006 nuclear test using plutonium produced a puny yield equivalent to one kiloton of TNT - compared with 13-18 kilotons for the Hiroshima bomb - and U.S. intelligence estimates put the 2009 test's yield at roughly two kilotons


North Korea is estimated to have enough fissile material for about a dozen plutonium warheads, although estimates vary, and intelligence reports suggest that it has been enriching uranium to supplement that stock and give it a second path to the bomb.


According to estimates from the Institute for Science and International Security from late 2012, North Korea could have enough weapons grade uranium for 21-32 nuclear weapons by 2016 if it used one centrifuge at its Yongbyon nuclear plant to enrich uranium to weapons grade.


North Korea has not yet mastered the technology needed to make a nuclear warhead small enough for an intercontinental missile, most observers say, and needs to develop the capacity to shield any warhead from re-entry into the earth's atmosphere.


North Korea gave no time-frame for the coming test and often employs harsh rhetoric in response to U.N. and U.S. actions that it sees as hostile.


The bellicose statement on Thursday appeared to dent any remaining hopes that Kim Jong-un, believed to be 30 years old, would pursue a different path from his father, Kim Jong-il, who oversaw the country's military and nuclear programs.


The older Kim died in December 2011.


"The UNSC (Security Council) resolution masterminded by the U.S. has brought its hostile policy towards the Democratic Peoples Republic of Korea (North Korea) to its most dangerous stage," the commission was quoted as saying.


(Additional reporting by Christine Kim in SEOUL, Ben Blanchard and Sui-Lee Wee in Beijing; Writing by David Chance; Editing by Raju Gopalakrishnan and Ron Popeski)



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Dow, Nasdaq boosted by tech; S&P flat

NEW YORK (Reuters) - The Dow and Nasdaq edged higher on Wednesday, lifted by IBM and Google whose stronger-than-expected profits helped to soothe investors' concerns about the tech sector.


IBM's and Google's earnings, released after Tuesday's close, were the latest reassuring fourth-quarter results that pushed the Dow and S&P 500 to five-year highs as worries about the "fiscal cliff" and euro zone debt crisis faded and earnings became the market's main focus.


International Business Machines Corp forecast better-than-anticipated 2013 results and also posted fourth-quarter earnings and revenue that beat expectations.


Shares in the world's largest technology services company, climbed 5.5 percent to $206.87, its biggest advance since July, making it by far the largest boost to the Dow.


Worries about the profit potential in the tech sector had increased amid questions about waning demand for Apple Inc products and a weak outlook from Intel Corp last week.


Also helping to boost the tech sector was a 6.1 percent jump in Internet search company Google Inc to $746.02. The Internet search company reported its core business outpaced expectations and revenue was higher than expected.


Despite a 1.3 percent gain in the S&P technology sector <.splrct>, gains on the broader S&P 500 index were limited a day after the benchmark index closed at a fresh 5-year high.


The recent gains have been largely fueled by a stronger than expected start to the earning season, pushing the benchmark S&P index near the 1,500 level, last reached on December 12, 2007, and may make additional gains harder to come by after a 4.6 increase for the month.


"This certainly is new air up here, you have to give it some time at this level," said Troy Logan, managing director and senior economist at Warren Financial Service in Exton, Pennsylvania.


"More fundamentally, there is less concern about Europe. You need less noise on the political front and the focus back on corporate American growing earnings."


With tech earnings strong, Thomson Reuters data through Wednesday shows that of the 99 S&P 500 companies that have reported earnings so far, 67.7 percent have topped expectations, above the 62 percent average since 1994 and the 65 percent average over the past four quarters.


The Dow Jones industrial average <.dji> gained 43.27 points, or 0.32 percent, to 13,755.48. The Standard & Poor's 500 Index <.spx> shed 1.32 points, or 0.09 percent, to 1,491.24. The Nasdaq Composite Index <.ixic> added 8.82 points, or 0.28 percent, to 3,152.00.


McDonald's slipped 0.3 percent to $92.63 after reporting a rise in fourth-quarter earnings, lifted by an increase in same-store sales. Fellow Dow component United Technology Corp's earnings fell from the prior year, hurt by large restructuring charges. Shares edged up 0.4 percent to $87.86.


On the downside, leather-goods maker Coach Inc plunged 14.8 percent to $51.75 as the S&P's worst performer after reporting sales that missed expectations. The S&P consumer discretionary sector <.splrcd> lost 0.5 percent.


After the market closes, investors will scour Apple's results for signs it can continue to grow at an accelerated pace. The stock has been pressured recently by questions raised about demand for Apple's products. The stock has fallen 5 percent since the start of the year, compared with gains of 4.6 percent in the S&P 500. It rose 0.4 percent to $507.04 on Wednesday.


"Pretty much all eyes are on Apple to see what they are going to do this evening. What happened to Apple is they had some misses in the second and third quarters of 2012 and the explanation was anticipation of the new iPhone 5, so this quarter they really have to deliver on that story," Logan said.


Overall, S&P 500 fourth-quarter earnings rose 2.8 percent, according to Thomson Reuters data. That estimate is above the 1.9 percent forecast from the start of earnings season, but well below the 9.9 percent fourth-quarter earnings forecast from October 1, the data showed.


Republican leaders in the U.S. House of Representatives aim on Wednesday to pass a bill to extend the U.S. debt limit by nearly four months, to May 19. The White House welcomed the move, saying it would remove uncertainty about the issue.


The debt limit issue has hung over the market for weeks, with many investors worried that if no deal is reached to raise the limit, it could have a negative impact on the economy.


(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)



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NCAA announces problems with Miami investigation


CORAL GABLES, Fla. (AP) — The NCAA is revealing that it has found "an issue of improper conduct" within its own enforcement program during its investigation into the compliance practices of Miami's athletic department.


The NCAA says that former enforcement staff members worked with the criminal defense attorney for former booster and convicted Ponzi scheme architect Nevin Shapiro to improperly obtain information during the course of the investigation. The NCAA says that information came during a bankruptcy proceeding that did not involve the NCAA.


NCAA President Mark Emmert has ordered an external review of the enforcement program. Miami will not receive its notice of allegations until that review is complete.


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How Much Will Tar Sands Oil Add to Global Warming?






James Hansen has been publicly speaking about climate change since 1988. The NASA climatologist testified to Congress that year and he’s been testifying ever since to crowds large and small, most recently to a small gathering of religious leaders outside the White House last week. The grandfatherly scientist has the long face of a man used to seeing bad news in the numbers and speaks with the thick, even cadence of the northern Midwest, where he grew up, a trait that also helps ensure that his sometimes convoluted science gets across.

This cautious man has also been arrested multiple times.


His acts of civil disobedience started in 2009, and he was first arrested in 2011 for protesting the development of Canada’s tar sands and, especially, the Keystone XL pipeline proposal that would serve to open the spigot for such oil even wider. “To avoid passing tipping points, such as initiation of the collapse of the West Antarctic Ice Sheet, we need to limit the climate forcing severely. It’s still possible to do that, if we phase down carbon emissions rapidly, but that means moving expeditiously to clean energies of the future,” he explains. “Moving to tar sands, one of the dirtiest, most carbon-intensive fuels on the planet, is a step in exactly the opposite direction, indicating either that governments don’t understand the situation or that they just don’t give a damn.”






He adds: “People who care should draw the line.”


Hansen is not alone in caring. In addition to a groundswell of opposition to the 2,700-kilometer-long Keystone pipeline, 17 of his fellow climate scientists joined him in signing a letter urging Pres. Barack Obama to reject the project last week. Simply put, building the pipeline—and enabling more tar sands production—runs “counter to both national and planetary interests,” the researchers wrote. “The year of review that you asked for on the project made it clear exactly how pressing the climate issue really is.” Obama seemed to agree in his second inaugural address this week, noting “we will respond to the threat of climate change, knowing that the failure to do so would betray our children and future generations.”


At the same time, the U.S. imports nearly nine million barrels of oil per day and burns nearly a billion metric tons of coal annually. China’s coal burning is even larger and continues to grow by leaps and bounds. Partially as a result, global emissions of greenhouse gases continue to grow by leaps and bounds too—and China is one alternative customer eager for the oil from Canada’s tar sands. Neither developed nor developing nations will break the fossil-fuel addiction overnight, and there are still more than a billion people who would benefit from more fossil-fuel burning to help lift them out of energy poverty. The question lurking behind the fight in North America over Keystone, the tar sands and climate change generally is: How much of the planet’s remaining fossil fuels can we burn?


The trillion-tonne question
To begin to estimate how much fossil fuels can be burned, one has to begin with a guess about how sensitive the global climate really is to additional carbon dioxide. If you think the climate is vulnerable to even small changes in concentrations of greenhouse gases—as Hansen and others do—then we have already gone too far. Global concentrations of greenhouse gases in the atmosphere have reached 394 parts per million, up from 280 ppm before the Industrial Revolution and the highest levels seen in at least 800,000 years. Hansen’s math suggests 350 ppm would be a safer level, given that with less than a degree Celsius of warming from present greenhouse gas concentrations, the world is already losing ice at an alarming rate, among other faster-than-expected climate changes.


International governments have determined that 450 ppm is a number more to their liking, which, it is argued, will keep the globe’s average temperatures from warming more than 2 degrees C. Regardless, the world is presently on track to achieve concentrations well above that number. Scientists since chemist Svante Arrhenius of Sweden in 1896 have noted that reaching concentrations of roughly 560 ppm would likely result in a world with average temperatures roughly 3 degrees C warmer—and subsequent estimates continue to bear his laborious, hand-written calculations out. Of course, rolling back greenhouse gas concentrations to Hansen’s preferred 350 ppm—or any other number for that matter—is a profoundly unnatural idea. Stasis is not often found in the natural world.


Concentrations of greenhouse gases in the atmosphere may not be the best metric for combating climate change anyway. “What matters is our total emission rate,” notes climate modeler Ken Caldeira of the Carnegie Institution for Science Department of Global Ecology at Stanford University, another signee of the anti-Keystone letter. “From the perspective of the climate system, a CO2 molecule is a CO2 molecule and it doesn’t matter if it came from coal versus natural gas.”


Physicist Myles Allen of the University of Oxford in England and colleagues estimated that the world could afford to put one trillion metric tons of carbon into the atmosphere by 2050 to have any chance of restraining global warming below 2 degrees C. To date, fossil fuel burning, deforestation and other actions have put nearly 570 billion metric tons of carbon in the atmosphere—and Allen estimates the trillionth metric ton of carbon will be emitted around the summer of 2041 at present rates. “Tons of carbon is fundamental,” adds Hansen, who has argued that burning all available fossil fuels would result in global warming of more than 10 degrees C. “It does not matter much how fast you burn it.”


Alberta’s oil sands represent a significant tonnage of carbon. With today’s technology there are roughly 170 billion barrels of oil to be recovered in the tar sands, and an additional 1.63 trillion barrels worth underground if every last bit of bitumen could be separated from sand. “The amount of CO2 locked up in Alberta tar sands is enormous,” notes mechanical engineer John Abraham of the University of Saint Thomas in Minnesota, another signer of the Keystone protest letter from scientists. “If we burn all the tar sand oil, the temperature rise, just from burning that tar sand, will be half of what we’ve already seen”—an estimated additional nearly 0.4 degree C from Alberta alone.


As it stands, the oil sands industry has greenhouse gas emissions greater than New Zealand and Kenya—combined. If all the bitumen in those sands could be burned, another 240 billion metric tons of carbon would be added to the atmosphere and, even if just the oil sands recoverable with today’s technology get burned, 22 billion metric tons of carbon would reach the sky. And reserves usually expand over time as technology develops, otherwise the world would have run out of recoverable oil long ago.


The greenhouse gas emissions of mining and upgrading tar sands is roughly 79 kilograms per barrel of oil presently, whereas melting out the bitumen in place requires burning a lot of natural gas—boosting emissions to more than 116 kilograms per barrel, according to oil industry consultants IHS Cambridge Energy Research Associates. All told, producing and processing tar sands oil results in roughly 14 percent more greenhouse gas emissions than the average oil used in the U.S. And greenhouse gas emissions per barrel have stopped improving and started increasing slightly, thanks to increasing development of greenhouse gas–intensive melting-in-place projects. “Emissions have doubled since 1990 and will double again by 2020,” says Jennifer Grant, director of oil sands research at environmental group Pembina Institute in Canada.


Just one mine expansion, Shell’s Jackpine mine, currently under consideration for the Albian mega-mine site, would increase greenhouse gas emissions by 1.18 million metric tons per year. “If Keystone is approved then we’re locking in a several more decades of dependence on fossil fuels,” says climate modeler Daniel Harvey of the University of Toronto. “That means higher CO2 emissions, higher concentrations [in the atmosphere] and greater warming that our children and grandchildren have to deal with.”


And then there’s all the carbon that has to come out of the bitumen to turn it into a usable crude oil.


Hidden carbon
In the U.S. State Department’s review of the potential environmental impacts of the Keystone project, consultants EnSys Energy suggested that building the pipeline would not have “any significant impact” on greenhouse gas emissions, largely because Canada’s tar sands would likely be developed anyway. But the Keystone pipeline represents the ability to carry away an additional 830,000 barrels per day—and the Albertan tar sands are already bumping up against constraints in the ability to move their product. That has led some to begin shipping the oil by train, truck and barge—further increasing the greenhouse gas emissions—and there is a proposal to build a new rail line, capable of carrying five million barrels of oil per year from Fort McMurray to Alaska’s Valdez oil terminal.


Then there’s the carbon hidden in the bitumen itself. Either near oil sands mines in the mini-refineries known as upgraders or farther south after the bitumen has reached Midwestern or Gulf Coast refineries, its long, tarry hydrocarbon chains are cracked into the shorter, lighter hydrocarbons used as gasoline, diesel and jet fuel. The residue of this process is a nearly pure black carbon known as petroleum (pet) coke that, if it builds up, has to be blasted loose, as if mining for coal in industrial equipment. The coke is, in fact, a kind of coal and is often burned in the dirtiest fossil fuel’s stead. Canadian tar sands upgraders produce roughly 10 million metric tons of the stuff annually, whereas U.S. refineries pump out more than 61 million metric tons per year.


Pet coke is possibly the dirtiest fossil fuel available, emitting at least 30 percent more CO2 per ton than an equivalent amount of the lowest quality mined coals. According to multiple reports from independent analysts, the production (and eventual burning) of such petroleum coke is not included in industry estimates of tar sands greenhouse gas emissions because it is a co-product. Even without it, the Congressional Research Service estimates that tar sands oil results in at least 14 percent more greenhouse gas emissions than do more conventional crude oils.


Although tar sands may be among the least climate-friendly oil produced at present—edging out alternatives such as fracking for oil trapped in shale deposits in North Dakota and flaring the gas—the industry has made attempts to reduce greenhouse gas pollution, unlike in other oil-producing regions. For example, there are alternatives to cracking bitumen and making pet coke, albeit more expensive ones, such as adding hydrogen to the cracked bitumen, a process that leaves little carbon behind that is employed by Shell, among others.


More recently, Shell has begun adding carbon-capture-and-storage (CCS) technology to capture the emissions from a few of its own upgraders, a project known as Quest. The program, when completed in 2015, will aim to capture and store one million metric tons of CO2 per year, or a little more than a third of the CO2 emissions of Shell’s operation at that site. And tar sands producers do face a price on carbon—$ 15 per metric ton by Alberta provincial regulation—for any emissions above a goal of reducing by 12 percent the total amount of greenhouse gas emitted per total number of barrels produced.


The funds collected—some $ 312 million to date—are then used to invest in clean technology, but more than 75 percent of the projects are focused on reducing emissions from oil sands, unconventional oils and other fossil fuels. And to drive more companies to implement CCS in the oil sands would require a carbon price of $ 100 per metric ton or more. “We don’t have a price on carbon in the province that is compelling companies to pursue CCS,” Pembina’s Grant argues.


In fact, Alberta’s carbon price may be little more than political cover. “It gives us some ammunition when people attack us for our carbon footprint, if nothing else,” former Alberta Energy Minister Ron Liepert told Scientific American in September 2011. Adds Beverly Yee, assistant deputy minister at Alberta’s Environment and Sustainable Resource Development agency, more recently, “Greenhouse gases? We don’t see that as a regional issue.” From the individual driver in the U.S. to oil sands workers and on up to the highest echelons of government in North America, everyone dodges responsibility.


Price of carbon
A true price on carbon, one that incorporates all the damages that could be inflicted by catastrophic climate change, is exactly what Hansen believes is needed to ensure that more fossil fuels, like the tar sands, stay buried. In his preferred scheme, a price on carbon that slowly ratcheted up would be collected either where the fossil fuel comes out of the ground or enters a given country, such as at a port. But instead of that tax filling government coffers, the collected revenue should be rebated in full to all legal residents in equal amounts—an approach he calls fee and dividend. “Not one penny to reducing the national debt or off-setting some other tax,” the government scientist argues. “Those are euphemisms for giving the money to government, allowing them to spend more.”


Such a carbon tax would make fossil fuels more expensive than alternatives, whether renewable resources such as wind and sun or low-carbon nuclear power. As a result, these latter technologies might begin to displace things like coal-burning power plants or halt major investments in oil infrastructure like the Keystone XL pipeline.


As it stands, producing 1.8 million barrels per day of tar sands oil resulted in the emissions of some 47.1 million metric tons of CO2-equivalent in 2011, up nearly 2 percent from the year before and still growing, according to the Canadian Association of Petroleum Producers. In the same year coal-fired power plants in the U.S. emitted more than two billion metric tons of CO2-equivalent. “If you think that using other petroleum sources is much better [than tar sands], then you’re delusional,” says chemical engineer Murray Gray, scientific director of the Center for Oil Sands Innovation at the University of Alberta.


In other words, tar sands are just a part of the fossil-fuel addiction—but still an important part. Projects either approved or under construction would expand tar sands production to over five million barrels per day by 2030. “Any expansion of an energy system that relies on the atmosphere to be its waste dump is bad news, whereas expansion of safe, affordable and environmentally acceptable energy technologies is good news,” Carnegie’s Caldeira says.


There’s a lot of bad news these days then, from fracking shale for gas and oil in the U.S. to new coal mines in China. Oxford’s Allen calculates that the world needs to begin reducing emissions by roughly 2.5 percent per year, starting now, in order to hit the trillion metric ton target by 2050. Instead emissions hit a new record this past year, increasing 3 percent to 34.7 billion metric tons of CO2 and other greenhouse gases.


Stopping even more bad news is why Hansen expects to be arrested again, whether at a protest against mountaintop removal mining for coal in West Virginia or a sit-in outside the White House to convince the Obama administration to say no to Keystone XL and any expansion of the tar sands industry. The Obama administration has already approved the southern half of the pipeline proposal—and if the northern link is approved, a decision expected after March of this year, environmental group Oil Change International estimates that tar sands refined on the Gulf Coast would produce 16.6 million metric tons of CO2 annually, along with enough petroleum coke to fuel five coal-fired power plants for a year. All told, the increased tar sands production as a result of opening Keystone would be equal to opening six new coal-fired power plants, according to Pembina Institute calculations.


Even as increased oil production in the U.S. diminishes the demand for tar sands-derived fuel domestically, if Keystone reaches the Gulf Coast, that oil will still be refined and exported. At the same time, Obama pledged to respond to climate change and argued for U.S. leadership in the transition to “sustainable energy sources” during his second inaugural address; approving Keystone might lead in the opposite direction.


For the tar sands “the climate forcing per unit energy is higher than most fossil fuels,” argues Hansen, who believes he is fighting for the global climate his five grandchildren will endure—or enjoy. After all, none of his grandchildren have lived through a month with colder than average daily temperatures. There has not been one in the U.S. since February 1985, before even Hansen started testifying on global warming. As he says: “Going after tar sands—incredibly dirty, destroying the local environment for a very carbon-intensive fuel—is the sign of a terribly crazed addict.”Follow Scientific American on Twitter @SciAm and @SciamBlogs.Visit ScientificAmerican.com for the latest in science, health and technology news.
© 2013 ScientificAmerican.com. All rights reserved.


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2013 could be 'climate game-changer'




An ice sculpture entitled 'Minimum Monument' by Brazilian artist Nele Azevedo outside Berlin's Concert Hall, September 2, 2009.




STORY HIGHLIGHTS


  • The "neglected" risk of climate change seems to be rising to the top of leaders' agendas

  • Extreme weather events are costing the global economy billions of dollars each year

  • Gas can be an important bridge to a lower carbon future but it's not the answer

  • More investment in renewable energy is needed, with fewer risks




Editor's note: Andrew Steer is President and CEO of the World Resources Institute, a think tank that works with governments, businesses and civil society to find sustainable solutions to environmental and development challenges.


(CNN) -- As leaders gather for the World Economic Forum in Davos, signs of economic hope are upon us. The global economy is on the mend. Worldwide, the middle class is expanding by an estimated 100 million per year. And the quality of life for millions in Asia and Africa is growing at an unprecedented pace.


Threats abound, of course. One neglected risk -- climate change -- appears to at last be rising to the top of agendas in business and political circles. When the World Economic Forum recently asked 1,000 leaders from industry, government, academia, and civil society to rank risks over the coming decade for the Global Risks 2013 report, climate change was in the top three. And in his second inaugural address, President Obama identified climate change as a major priority for his Administration.



Andrew Steer

Andrew Steer



For good reason: last year was the hottest year on record for the continental United States, and records for extreme weather events were broken around the world. We are seeing more droughts, wildfires, and rising seas. The current U.S. drought will wipe out approximately 1% of the U.S. GDP and is on course to be the costliest natural disaster in U.S. history. Damage from Hurricane Sandy will cost another 0.5% of GDP. And a recent study found that the cost of climate change is about $1.2 trillion per year globally, or 1.6% of global GDP.


Shifting to low-carbon energy sources is critical to mitigating climate change's impacts. Today's global energy mix is changing rapidly, but is it heading in the right direction?


Coal is the greatest driver of carbon dioxide emissions from energy, accounting for more than 40% of the total worldwide. Although coal demand is falling in the United States -- with 55 coal-powered plants closed in the past year -- it's growing globally. The World Resources Institute (WRI) recently identified 1,200 proposed new coal plants around the world. And last year, the United States hit a record-high level of coal exports—arguably transferring U.S. emissions abroad.










Meanwhile, shale gas is booming. Production in the United States has increased nearly tenfold since 2005, and China, India, Argentina, and many others have huge potential reserves. This development can be an economic blessing in many regions, and, because carbon emissions of shale gas are roughly half those of coal, it can help us get onto a lower carbon growth path.


However, while gas is an important bridge to a low carbon future—and can be a component of such a future—it can't get us fully to where we need to be. Greenhouse gas emissions in industrial countries need to fall by 80-90% by 2050 to prevent climate change's most disastrous impacts. And there is evidence that gas is crowding out renewables.


Renewable energy -- especially solar and wind power -- are clear winners when it comes to reducing emissions. Unfortunately, despite falling prices, the financial markets remain largely risk-averse. Many investors are less willing to finance renewable power. As a result of this mindset, along with policy uncertainty and the proliferation of low-cost gas, renewable energy investment dropped 11%, to $268 billion, last year.


What do we need to get on track?



Incentivizing renewable energy investment


Currently, more than 100 countries have renewable energy targets, more than 40 developing nations have introduced feed-in tariffs, and countries from Saudi Arabia to South Africa are making big bets on renewables as a growth market. Many countries are also exploring carbon-trading markets, including the EU, South Korea, and Australia. This year, China launched pilot trading projects in five cities and two provinces, with a goal of a national program by 2015.


Removing market barriers


Despite growing demand for renewable energy from many companies, this demand often remains unmet due to numerous regulatory, financial, and psychological barriers in the marketplace.


In an effort to address these, WRI just launched the Green Power Market Development Group in India, bringing together industry, government, and NGOs to build critical support for renewable energy markets. A dozen major companies from a variety of sectors—like Infosys, ACC, Cognizant, IBM, WIPRO, and others— have joined the initiative. This type of government-industry-utility partnership, built upon highly successful models elsewhere, can spur expanded clean energy development. It will be highlighted in Davos this week at meetings of the Green Growth Action Alliance (G2A2).


De-risking investments


For technical, policy, and financial reasons, risks are often higher for renewables than fossil-based energy. Addressing these risks is the big remaining task to bring about the needed energy transformation. Some new funding mechanisms are emerging that can help reduce risk and thus leverage large sums of financing. For example, the Green Climate Fund could, if well-designed, be an important venue to raise funds and drive additional investments from capital markets. Likewise, multi-lateral development banks' recent $175 billion commitment to sustainable transport could help leverage more funds from the private and public sectors.


Some forward-looking companies are seeking to create internal incentives for green investments. For example, companies like Unilever, Johnson & Johnson, and UPS have been taking actions to reduce internal hurdle rates and shift strategic thinking to the longer-term horizons that many green strategies need.


Davos is exactly the type of venue for finding solutions to such issues, which requires leadership and coalition-building from the private and public sectors. For example, the the G2A2, an alliance of CEOs committed to addressing climate and environmental risks, will launch the Green Investment Report with precisely the goal of "unlocking finance for green growth".


Depending on what happens at Davos—and other forums and meetings like it throughout the year—2013 could just be a game-changer.


Follow us on Twitter@CNNOpinion.


Join us on Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Andrew Steer.






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Pearl Jam announces July concert at Wrigley Field




















The Buzz; Pearl Jam reunion, Beyonce lip synched, Shakira has baby, Music Man review




















































Pearl Jam will be playing at Wrigley Field Friday, July 19, the band confirmed this morning.


The band tweeted out, "IT'S OFFICIAL: Pearl Jam will be playing at Wrigley Field. Will you be there?" The show will be called “An Evening With Pearl Jam," with no opening act.


Tickets will go on sale Feb. 9 at 10 a.m. central, according to concert promoter Live Nation. Tickets will be available at www.tickets.com or by calling 1-800-THE-CUBS. Tickets will not be available at the Wrigley Field Box Office.








Pearl Jam and the Cubs haven't been very subtle about the possibility of the iconic band playing a concert at Wrigley Field in 2013.


Tuesday afternoon, both the Cubs and Pearl Jam Tweeted pictures of the field at Wrigley, with a full concert setup. The band's Tweet, featuring the "stay tuned" hashtag, also included a "looking good" reference to the Wrigley image.


The Cubs also played a role in the suspense, sending out a Tweet that included "Ten," and a repeat of the "stay tuned" hashtag. There was also a link to a photo of a Ron Santo Cubs jersey (No. 10), the parallel being that “Ten” is also the title of Pearl Jam’s first album.


The band also announced a July 16 date in London, Ontario.




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