Wall Street drops on growth concerns, fear index jumps

NEW YORK (Reuters) - U.S. stocks fell for a second day on Thursday and gauge of investor concern hit its highest in two months after reports cast doubt over the health of the U.S. and euro-zone economies.

The second day of sharp declines in equity markets put the S&P 500 on course for its worst two-day loss since November.

The CBOE Volatility Index <.vix> or VIX, a measure of investor fear, jumped 6.7 percent to 15.67.

Initial claims for unemployment benefits rose more than expected last week while the Federal Reserve Bank of Philadelphia said its index of business conditions in the U.S. mid-Atlantic region fell in February to minus 12.5, the lowest in eight months.

In Europe, business activity indexes dealt a blow to hopes that the euro zone might emerge from recession soon, showing the downturn across the region's businesses unexpectedly grew worse this month.

"The PMI numbers out of Europe were really a blow to the market," said Jack De Gan, chief investment officer at Harbor Advisory in Portsmouth, New Hampshire.

"The market was expecting signs that recovery is still there, but the numbers just highlighted that the euro-zone problem is still persistent."

The abrupt reversal in markets, which started on Wednesday after minutes from the Federal Reserve's January meeting suggested stimulus measures may end earlier than thought, looks set to halt a seven-week winning streak for stocks that had lifted indexes close to all-time highs.

The Dow Jones industrial average <.dji> dropped 53.87 points, or 0.39 percent, to 13,873.67. The Standard & Poor's 500 Index <.spx> fell 10.30 points, or 0.68 percent, to 1,501.65. The Nasdaq Composite Index <.ixic> lost 35.08 points, or 1.11 percent, to 3,129.33.

The two-day decline marked the U.S. stock market's first sustained pullback this year. The Standard & Poor's 500 has fallen 2 percent over the period, but is still up 5.2 percent so far this year.

"The upside momentum in markets appears to be coming to an end as we consolidate recent gains," said Adam Sarhan, chief executive at Sarhan Capital in New York. "If the S&P breaks under its 50-day moving average, something more serious could be in store."

The S&P 500 would need to fall 1.9 percent to reach that level of 1,473.62.

Wal-Mart Stores Inc shares gained 2.1 percent to $70.66 and helped curb the Dow's decline after the world's largest retailer reported earnings that beat expectations, though early February sales were sluggish.

Wall Street will soon face another test with the upcoming debate in Washington over the automatic across-the-board spending cuts put in place as part of a larger congressional budget fight. Those cuts, set to kick in on March 1 unless lawmakers agree on an alternative, are expected to depress economic growth.

Semiconductor stocks ranked among the weakest of the day, pressuring the Nasdaq as the Philadelphia Semiconductor Index <.sox> fell 2.3 percent. Intel Corp fell 2.9 percent to $20.13 while Advanced Micro Devices lost 6.7 percent to $2.53 as the S&P 500's biggest percentage decliner.

The semiconductor sector has performed well so far in 2013, rising 8.4 percent.

In other company news, shares of supermarket operator Safeway Inc jumped 12.3 percent to $22 after the company reported earnings that beat expectations.

In contrast, shares of VeriFone Systems Inc tumbled nearly 40 percent to $19.28 after the credit-card swipe machine maker forecast first- and second-quarter profits well below expectations.

Of the 427 companies in the S&P 500 that have reported results so far, 69.3 percent have exceeded analysts' expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters, according to Thomson Reuters data through Thursday morning.

Fourth-quarter earnings for S&P 500 companies are estimated to have risen 5.9 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

Berry Petroleum Co jumped 17.2 percent to $45.23 after oil and gas producer Linn Energy LLC said it would buy the company in an all-stock deal valued at $4.3 billion, including debt. Linn Energy shares advanced 1.9 percent to $37.36.

(Editing by Jan Paschal)

Read More..

Russian Mother of Adopted Boy Who Died in U.S. Wants His Brother Back

MOSCOW — The Russian mother of two young boys who were adopted by a Texas couple requested on Wednesday that the younger child be returned to her, after his brother died under unclear circumstances in a case that has given new impetus to a long-running controversy over foreign adoptions.

The older boy, Max Shatto, 3, died in a West Texas hospital in late January. His birth mother, Yulia A. Kuzmina, pleaded with President Vladimir V. Putin in a letter on Wednesday to restore her parental rights concerning the younger boy, Kirill, 2.

Russian social services officers took the children away from Ms. Kuzmina in 2011, when Kirill was an infant, saying that she was unfit to raise them because of alcohol addiction. The American couple, Alan and Laura Shatto of Gardendale, Tex., adopted the two boys from a Russian orphanage late last year. Texas officials have received complaints that Max was physically abused and are investigating his death.

“I am the birth mother of Maksim Kuzmin, murdered in the United States by his adoptive family, the Shattos,” Ms. Kuzmina wrote, referring to Max by his pre-adoptive Russian name. “These people have my second son. I accept my guilt before the children, have found work and have the ability to provide for the child. Help me please, don’t allow the death of my second child, Kirill.”

The case has revived an aggressive campaign in Russia to curb adoptions by foreigners, and particularly by American families. The country banned adoptions of Russian orphans by Americans in late December. Opponents criticized the move, saying Russian authorities were using children for political leverage during a period of tense relations with the United States.

Russian investigators say Ms. Shatto beat Max to death, and count him as one of 20 Russian children who were adopted by American families and then died over the past 20 years. On Wednesday, Russia’s chief investigator said he had opened 11 criminal cases in Russian courts against American parents who were acquitted by American courts in connection with such deaths.

In an interview on Russian state television Wednesday, Ms. Kuzmina said she was returning home from a store with sweets for the children in 2011 when she learned that social services had taken Maksim and Kirill away.

“I am guilty for everything that has happened,” she said through tears during the interview. “Now I want to take him back.”

Read More..

Check Out Pregnant Maya Rudolph's Undercover Bump

Mom & Babies
Celebrity Baby Blog

02/20/2013 at 03:00 PM ET

Jason Merritt/Getty

What baby bump?

Maya Rudolph, who recently told Up All Night producers that she’s expecting her fourth child with Paul Thomas Anderson, swathed her belly in an animal-print teal and black sheath dress for Tuesday’s Costume Designers Guild Awards.

Keeping mum on her current condition, the actress, 40, did repeatedly remark upon how out of breath she was once she made it up to the stage to present with her former Saturday Night Live costar Amy Poehler.

Rudolph and The Master director, 42, are already parents to daughters Pearl, 7, and Lucille, 3, and son Jack, 19 months.

RELATED: Fourth Child on the Way for Maya Rudolph?

Read More..

Obama administration tackles colonoscopy confusion

WASHINGTON (AP) — It's one part of the new health care law that seemed clear: free coverage for preventive care under most insurance plans.

Only it didn't turn out that way.

So on Wednesday, the Obama administration had to straighten out the confusion.

Have you gone for a colonoscopy thinking it was free, only to get a hefty bill because the doctor removed a polyp?

No more.

Taking out such precancerous growths as part of a routine colon cancer screening procedure will now be considered preventive care.

"Polyp removal is an integral part of a colonoscopy," the Department of Health and Human Services said in guidance posted on its website. That conclusion has the backing of several leading medical societies, the department noted.

Also addressed in the notice was genetic testing for breast cancer, coverage of over-the-counter products such as aspirin for heart care and nicotine patches for smoking, and birth control for women. Unlike formal regulations, the guidance does not have the force of law, but advocates for patients say insurers would be ill-advised to ignore it.

President Barack Obama's health care law required most private health plans to cover preventive care at no additional charge to patients. It also expanded preventive coverage without copayments for Medicare recipients. For workers and their families, the expense is borne by the company health plan, which passes on some of those costs in the form of higher premiums. Advocates say preventive care saves the health care system money over time.

Colonoscopy is an expensive test that can cost more than $1,000. It's recommended for adults 50 and over, and has become a rite of passage for aging baby boomers.

News that it would be covered free under the health care law got attention, but that was followed quickly by a letdown when many insurers started charging if a polyp or two was discovered and removed during the procedure.

"Insurers were reclassifying it from a preventive test to a diagnostic procedure," said Stephen Finan, policy director for the American Cancer Society Cancer Action Network. "In some cases the cost-sharing was a significant amount of money."

His group was among several that complained to the administration.

Other free preventive services addressed in Wednesday's guidance:

—Insurers must cover testing, if ordered by a doctor, for rare BRCA genes that dramatically increase the risk of breast cancer. Such tests can cost as much as $3,000.

—Over-the-counter products such as aspirin for heart care and nicotine patches for smoking cessation are covered with a doctor's prescription.

—Insurers won't be able to fulfill the law's requirement to cover contraception as preventive care for women if they only pay for birth control pills. A full range of FDA-approved methods must be covered, including long-acting implant and intrauterine devices. Birth control methods for men are not covered as preventive care.

If a health plan does not have a network doctor who performs a particular preventive service, a patient can see a doctor out-of-network without facing copays or additional charges.

___

Online:

Health and Human Services Department: http://tinyurl.com/au6lzeo

Read More..

Wall Street extends losses; Nasdaq off one percent

DEAR ABBY: My boyfriend, "Doug" (24), and I (22) have been in a long-distance relationship for a year, but we were friends for a couple of years before that. I had never had a serious relationship before and lacked experience. Doug has not only been in two other long-term relationships, but has had sex with more than 15 women. One of them is an amateur porn actress.I knew about this, but it didn't bother me until recently. Doug had a party, and while he was drunk he told one of his buddies -- in front of me -- that he should watch a certain porn film starring his ex-girlfriend. ...

Read More..

At War Blog: Korean War Veteran Is Buried Six Decades After He Disappeared

The passengers aboard Delta Air Lines Flight 2125 didn’t get up when the plane taxied into its gate at Baltimore Washington International Airport earlier this month. They didn’t retrieve their bags from the overhead bins. Instead, they looked out the right side of the aircraft, where an honor guard and black hearse were waiting to escort the remains of Cpl. James R. Hare home, the final portion of a journey that spanned nearly 7,000 miles and six decades.

There was applause as a staff sergeant in dress uniform, who made the trip from Atlanta, headed to the baggage and cargo unloading area. A group of pre-teenagers headed to Washington on a church trip clustered around the plane’s windows, watching the six members of the honor guard come to attention and march over to where a flag-draped coffin was coming down a conveyor belt. Some passengers went inside the terminal, where more people lined up against the windows around the gate, watching as the coffin was placed into the hearse.

Corporal Hare, a native of Cumberland, Md., was 19 when he was reported missing in action on Feb. 13, 1951, near the South Korean town of Hoengsong. Chinese forces had carried out an attack against elements of the United States Army’s Second Infantry Division and South Korean units that resulted in more than 11,000 casualties, according to an Army history. Corporal Hare’s capture and death from malnutrition was reported by an American soldier returned in a 1953 prisoner exchange, the Department of Defense reported. An obituary published in the Cumberland Times-News gave his date of death as April 30, 1953.

The process of identifying Corporal Hare began nearly 20 years ago, when North Korea gave the United States 208 boxes of commingled remains from the Korean War. The process to separate and identify remains can be painstaking and take many years to complete. In Corporal Hare’s case, military forensic scientists used mitochondrial DNA donated by a brother and sister — Corporal Hare was one of 15 children — to help identify him, although the process required additional evidence to positively identify the remains because mitochondrial DNA is not specific to an individual. Often that other evidence can come from documents or research by the Defense Department, which conducts interviews with veterans and has an arrangement with China’s People’s Liberation Army to allow access to archives that may help in the identification of missing service members. Corporal Hare was the sixth missing American soldier to be accounted for in January; five were from the Korean War, and two of those also were among the remains turned over by North Korea two decades ago.

On Feb. 13, 62 years to the day after he was reported missing, Corporal Hare was buried at Wesley Chapel Cemetery in Levels, W.Va., where his parents are also interred.

Derek Willis is an interactive developer for The New York Times, based in Washington, D.C., where he builds Web applications for nytimes.com. He previously worked as a Congressional reporter and database editor.

Read More..

Mindy McCready 'Really Loved Her Dog'

People Pets

02/19/2013 at 03:45 PM EST

When Mindy McCready was found dead on Sunday of an apparent suicide, the country singer was not alone: Her dog, who'd been fatally shot, was by her side.

But a source close to the star tells Fox News that her decision to end the animal's life would "not have been an act of malice."

"Mindy really loved her dog," the friend said. "It would have been more of a case where she just didn't want to leave the dog alone."

The troubled star, whose boyfriend, David Wilson, died of a self-inflicted gunshot wound in January, was reportedly under investigation at the time of her death. Police were concerned about details surrounding Wilson's passing.

Read More..

UK patient dies from SARS-like coronavirus

LONDON (AP) — A patient being treated for a mysterious SARS-like virus has died, a British hospital said Tuesday.

Queen Elizabeth Hospital in Birmingham, central England, said the coronavirus victim was also being treated for "a long-term, complex unrelated health problem" and already had a compromised immune system.

A total of 12 people worldwide have been diagnosed with the disease, six of whom have died.

The virus was first identified last year in the Middle East. Most of those infected had traveled to Qatar, Saudi Arabia, Jordan or Pakistan, but the person who just died is believed to have caught it from a relative in Britain, where there have been four confirmed cases.

The new coronavirus is part of a family of viruses that cause ailments including the common cold and SARS. In 2003, a global outbreak of SARS killed about 800 people worldwide.

Health experts still aren't sure exactly how humans are being infected. The new coronavirus is most closely related to a bat virus and scientists are considering whether bats or other animals like goats or camels are a possible source of infection.

Britain's Health Protection Agency has said while it appears the virus can spread from person to person, "the risk of infection in contacts in most circumstances is still considered to be low."

Officials at the World Health Organization said the new virus has probably already spread between humans in some instances. In Saudi Arabia last year, four members of the same family fell ill and two died. And in a cluster of about a dozen people in Jordan, the virus may have spread at a hospital's intensive care unit.

Read More..

M&A deals lift shares, suggest value in market

NEW YORK (Reuters) - U.S. stocks rose on Tuesday as this year's ongoing surge of merger activity suggested investors were still finding value in the market even as indexes hover near five-year highs.

Office Depot Inc surged 12.4 percent to $5.15 after a person familiar with the matter said the No. 2 U.S. office supply retailer was in advanced talks to merge with smaller rival OfficeMax Inc , which jumped 22 percent.

News of the potential move came just days after Berkshire Hathaway and a partner agreed to acquire H.J. Heinz Co for $23 billion, and a revised $20 billion takeover of Mexican brewer Grupo Modelo by Anheuser-Busch InBev .

Deal activity has helped equities resist a pullback as investors use dips in stocks as buying opportunities. The S&P is up about 7 percent so far in 2013 and has climbed for the past seven weeks in its longest weekly winning streak since January 2011, though most of the weekly gains have been slim.

"Deals are good for the market," said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago. "The fact that they're being done is a positive."

More than $158 billion in deals has been announced so far in 2013, more than double the activity in the same period last year and accounting for 57 percent of global deal volumes, according to Thomson Reuters Deals Intelligence.

The Dow Jones industrial average <.dji> gained 54.19 points, or 0.39 percent, to 14,035.95. The Standard & Poor's 500 Index <.spx> gained 9.66 points, or 0.64 percent, to 1,529.45. The Nasdaq Composite Index <.ixic> gained 13.53 points, or 0.42 percent, to 3,205.56.

Other stocks in the office supplies sector also rose. Larger rival Staples Inc shot up 12.9 percent to $14.61 as the best performer on the S&P 500.

"Equity investors have to be encouraged by M&A since, if the number crunchers are offering large premiums, that shows how much value is still in the market," said Mike Gibbs, co-head of the equity advisory group at Raymond James in Memphis, Tennessee.

On the downside, health insurance stocks tumbled, led by a 6.4 percent drop in Humana Inc to $72.99 after the company said the government's proposed 2014 payment rates for Medicare Advantage participants were lower than expected and would hurt its profit outlook.

UnitedHealth Group lost 1.9 percent to $56.25. The Morgan Stanley healthcare payor index <.hmo> dropped 1.6 percent.

Wall Street's strong start to the year for was fueled by better-than-expected corporate earnings, as well as a compromise by legislators in Washington that temporarily averted automatic spending cuts and tax hikes that are predicted to damage the economy.

The compromise on across-the-board spending cuts postponed the matter until March 1, at which point the cuts take effect. Ahead of the debate over the cuts, known as sequestration, further gains for stocks may be difficult to come by.

"If there's no major contention with sequestration, it looks like stocks are prepared to handle it, but until then we'll probably stay in a consolidation period marked by sideways trading with a slow rate of ascent," said Gibbs.

Economic data showed the NAHB/Wells Fargo Housing Market index unexpectedly edged down to 46 in February from 47 in the prior month as builders faced higher material costs.

According to the Thomson Reuters data through Monday morning, of the 391 companies in the S&P 500 that have reported results, 70.1 percent have exceeded analysts' expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters.

Fourth-quarter earnings for S&P 500 companies have risen 5.6 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

Express Scripts rose 1.7 percent to $56.49 after the pharmacy benefits manager posted fourth-quarter earnings.

(Additional reporting by Chuck Mikolajczak; Editing by Chizu Nomiyama, Kenneth Barry and Nick Zieminski)

Read More..

India Ink: Image of the Day: Feb. 18

Read More..