Wall Street bounces back on hope for "cliff' solution

NEW YORK (Reuters) - U.S. stocks rebounded from early losses on Thursday after Republican House Speaker John Boehner said he would keep working on a solution to the "fiscal cliff" while also slamming President Barack Obama's approach to budget talks.


NYSE Euronext was the S&P 500's biggest gainer, surging 34 percent to $32.25 after IntercontinentalExchange Inc said it would buy the operator of the New York Stock Exchange for $8.2 billion.


ICE shares shot up 1.4 percent to $130.10.


Republicans in the U.S. House of Representatives pushed ahead with their own plan to avoid a series of steep tax hikes and spending cuts due in early 2013, complicating negotiations with the White House. Obama has vowed to veto the plan.


Investors have hoped for an agreement soon between policymakers, but progress has been slow. Boehner said he expected to continue to work with Obama, but repeated his charge that the president and Senate Democrats were trying to "slow walk" the country over the fiscal cliff.


"Speaker Boehner went on the air and basically told us he doesn't like what the president's doing or not doing, and the markets rallied on that, which was kind of weird," said Stephen Guilfoyle, a trader at Meridian Equity Partners, in New York.


The Dow Jones industrial average <.dji> gained 59.75 points, or 0.45 percent, to 13,311.72 at the close. The S&P 500 <.spx> rose 7.88 points, or 0.55 percent, to 1,443.69. The Nasdaq Composite <.ixic> climbed 6.02 points, or 0.20 percent, to 3,050.39.


Stocks rallied earlier in the week on signs of progress in the fiscal cliff negotiations. But with the S&P 500 up 14.8 percent so far this year, investors are taking the opportunity to engage in some hedging as 2012 comes to a close.


Herbalife lost 9.6 percent to $33.74 following news that hedge fund manager Bill Ackman was betting against the company as part of his big end-of-the-year short.


The S&P Financial Index <.gspf> gained 1.4 percent.


The U.S. economy grew 3.1 percent in the third quarter, faster than previously estimated, while the number of Americans filing new claims for jobless benefits rose more than expected in the latest week.


Existing home sales jumped 5.9 percent in November, more than expected, and by the fastest monthly pace in three years. An index of housing shares <.hgx> gained 0.78 percent.


But KB Home slid 6.4 percent to $15.60 as the company reported higher homebuilding costs and expenses in the fourth quarter.


About 6.4 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, roughly in line with the daily average so far this year of about 6.46 billion shares.


On the NYSE, advancers outnumbered decliners by a ratio of about 2 to 1. On the Nasdaq, five stocks rose for every three that fell.


(Additional reporting by Ryan Vlastelica and Leah Schnurr; Editing by Jan Paschal)



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China Arrests Christian Sect Members Over Doomsday Chat


Ed Jones/Agence France-Presse — Getty Images


A few entrepreneurial Chinese have focused on ways to survive an apocalypse, like Liu Qiyuan’s reinforced pods







BEIJING — By the time Saturday rolls around (or not) it will be self-evident whether the doomsday predictions espoused by some Christian sects and New Age followers of the Mayan end-of-world prophecy were off the mark.




The Chinese authorities are not willing to wait until then.


Alarmed by spreading fears in China that Dec. 21 will bring global apocalypse, security officials across the country have been rounding up members of a renegade Christian group whose members have been aggressively promoting the notion that devastating earthquakes and tsunamis will coincide with the end of the 5,125-year Mayan Long Count calendar.


In recent days, the police in nine provinces have arrested more than 900 devotees of the clandestine sect, the Church of Almighty God, whose adherents recently have begun holding outdoor prayer vigils and handing out pamphlets that warn nonbelievers that the only way to avoid extinction is to join their ranks.


Branded an “evil cult” by the Communist Party and maligned by mainstream Christian groups for claiming that God has returned to earth as a Chinese woman, the Church of Almighty God latched onto the Mayan end-of-days legend soon after the Hollywood disaster film “2012” took Chinese theaters by storm.


The movie, which gives China’s military a starring role as the savior of mankind, was a huge success here three years ago. A 3-D version that opened last month across the country has already earned $22 million, a substantial box office take in China.


It is impossible, of course, to gauge how many Chinese have been swept up by doomsday mania, or the less catastrophic version popular here that portends three continuous days of darkness, accompanied by a collapse of the nation’s electrical grid. Stores across the country have reported panic buying of candles, and a few entrepreneurs have made out well peddling survival kits or portable “Noah’s Arks.”


Liu Ye, a Beijing office worker, said he had already filled up the cataclysm-proof bunker he built in the mountains near Lhasa, in Tibet. The entry fee to his sanctuary was $8,000.


Yang Zhongfu, a businessman in coastal Zhejiang Province who usually makes a living producing scarves, says he has sold 26 steel-and-fiberglass floating spheres that each can contain and sustain as many as nine people for months. He said one anxious customer ordered 15 of the motorized vessels, which include oxygen tanks, solar lighting and seat belts to reduce jostling as passengers ride out a hypothetical deluge. The most expensive model, at $800,000, includes sacks of soil for growing vegetables.


“I told buyers I think they are overreacting to this so-called doomsday thing but I respect their decision,” Mr. Yang said.


The fear among security officials that apocalypse fever might get out of hand is not entirely unfounded. Last week, a mentally unstable man who slashed students at a primary school in the central province of Henan told investigators that his rampage was prompted by end-of-world jitters.


Public security officials across the country have been broadcasting warnings about purveyors of apocalyptic doom, some of whom are demanding money in exchange for salvation. “The end of the world is purely a rumor,” the Shanghai police said in a microblog message. “Do not believe it. Do not fall for the scam.”


But the brunt of the official crackdown has fallen on members of the Almighty God sect.


In an online notice posted Tuesday, provincial security officials described Almighty God as a criminal gang responsible for sowing social panic, preaching heresies and breaking up families. “It is a social cancer and a plague on humankind,” the notice said.


The sect, also known as Eastern Lightning and founded two decades ago in China’s frigid Heilongjiang Province, has long faced persecution. Although much about the group remains murky, some estimates suggest a membership of nearly one million.


Critics, including clerics from established Christian congregations, accuse Almighty God evangelists of strong-armed conversion tactics that include kidnapping and study sessions lasting days that they describe as brainwashing. Among the group’s central tenets is a belief that the messiah has arrived and that she is in hiding somewhere in China.


Shi Da contributed research.



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Experts: Kids are resilient in coping with trauma


WASHINGTON (AP) — They might not want to talk about the gunshots or the screams. But their toys might start getting into imaginary shootouts.


Last week's school shooting in Connecticut raises the question: What will be the psychological fallout for the children who survived?


For people of any age, regaining a sense of security after surviving violence can take a long time. They're at risk for lingering anxiety, depression, post-traumatic stress disorder.


But after the grief and fear fades, psychiatrists say most of Newtown's young survivors probably will cope without long-term emotional problems.


"Kids do tend to be highly resilient," said Dr. Matthew Biel, chief of child and adolescent psychiatry at MedStar Georgetown University Hospital.


And one way that younger children try to make sense of trauma is through play. Youngsters may pull out action figures or stuffed animals and re-enact what they witnessed, perhaps multiple times.


"That's the way they gain mastery over a situation that's overwhelming," Biel explained, saying it becomes a concern only if the child is clearly distressed while playing.


Nor is it unusual for children to chase each other playing cops-and-robbers, but now parents might see some also pretending they're dead, added Dr. Melissa Brymer of the UCLA-Duke National Center for Child Traumatic Stress.


Among the challenges will be spotting which children are struggling enough that they may need professional help.


Newtown's tragedy is particularly heart-wrenching because of what such young children grappled with — like the six first-graders who apparently had to run past their teacher's body to escape to safety.


There's little scientific research specifically on PTSD, post-traumatic stress disorder, in children exposed to a burst of violence, and even less to tell if a younger child will have a harder time healing than an older one.


Overall, scientists say studies of natural disasters and wars suggest most children eventually recover from traumatic experiences while a smaller proportion develop long-term disorders such as PTSD. Brymer says in her studies of school shootings, that fraction can range from 10 percent to a quarter of survivors, depending on what they actually experienced. A broader 2007 study found 13 percent of U.S. children exposed to different types of trauma reported some symptoms of PTSD, although less than 1 percent had enough for an official diagnosis.


Violence isn't all that rare in childhood. In many parts of the world — and in inner-city neighborhoods in the U.S., too — children witness it repeatedly. They don't become inured to it, Biel said, and more exposure means a greater chance of lasting psychological harm.


In Newtown, most at risk for longer-term problems are those who saw someone killed, said Dr. Carol North of the University of Texas Southwestern Medical Center, who has researched survivors of mass shootings.


Friday's shootings were mostly in two classrooms of Sandy Hook Elementary School, which has about 450 students through fourth-grade.


But those who weren't as close to the danger may be at extra risk, too, if this wasn't their first trauma or they already had problems such as anxiety disorders that increase their vulnerability, she said.


Right after a traumatic event, it's normal to have nightmares or trouble sleeping, to stick close to loved ones, and to be nervous or moody, Biel said.


To help, parents will have to follow their child's lead. Grilling a child about a traumatic experience isn't good, he stressed. Some children will ask a lot of questions, seeking reassurance, he said. Others will be quiet, thinking about the experience and maybe drawing or writing about it, or acting it out at playtime. Younger children may regress, becoming clingy or having tantrums.


Before second grade, their brains also are at a developmental stage some refer to as magical thinking, when it's difficult to distinguish reality and fantasy. Parents may have to help them understand that a friend who died isn't in pain or lonely but also isn't coming back, Brymer said.


When problem behaviors or signs of distress continue for several weeks, Brymer says it's time for an evaluation by a counselor or pediatrician.


Besides a supportive family, what helps? North advises getting children back into routines, together with their friends, and easing them back into a school setting. Studies of survivors of the Sept. 11 terrorist attacks found "the power of the support of the people who went through it with you is huge," she said.


Children as young as first-graders can benefit from cognitive-behavioral therapy, Georgetown's Biel said. They can calm themselves with breathing techniques. They also can learn to identify and label their feelings — anger, frustration, worry — and how to balance, say, a worried thought with a brave one.


Finally, avoid watching TV coverage of the shooting, as children may think it's happening all over again, Biel added. He found that children who watched the 9/11 clips of planes hitting the World Trade Center thought they were seeing dozens of separate attacks.


___


EDITOR'S NOTE — Lauran Neergaard covers health and medical issues for The Associated Press in Washington.


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Wall Street falls as "cliff" talks sour, but hopes remain

NEW YORK (Reuters) - U.S. stocks sold off late in the day to close at session lows on Wednesday as talks to avert a year-end fiscal crisis turned sour, even as investors still expect a deal.


The S&P 500 slipped after a two-day rally that took the benchmark index to its highest close in two months. Defensive-oriented shares led the decliners, including health care and consumer staples.


General Motors bucked the overall weakness to surge 6.6 percent to $27.18 after the automaker said it will buy back 200 million of its shares from the U.S. Treasury, which plans to sell the rest of its GM stake over the next 15 months.


President Barack Obama and congressional Republicans are struggling to come up with a deal to avoid early 2013 tax hikes and spending cuts that many economists say could send the U.S. economy into recession.


House Speaker John Boehner, the top Republican in Congress, said in a one-minute press conference that his chamber will pass a proposal that Obama had already threatened to veto as it spares many wealthy Americans from tax hikes needed to balance the budget. Obama has already agreed to reductions in benefits for senior citizens.


"My guess is they're close to a deal, and right before, it looks like the deal is about to blow up either on manufactured or legitimate reasons," said Uri Landesman, president of hedge fund Platinum Partners in New York.


He said if the market thought a deal was in real danger, the S&P 500 would slide below 1,400. It stands now near 1,435, not far from a two-month high.


The CBOE Volatility Index <.vix> surged 11.5 percent to 17.36, but has remained relatively stable. Its 14- 50- and 200-day averages are all within 1.1 points.


Landesman said the VIX's stability indicates "the bulls have control of this market still."


Banks and energy shares - groups that outperform during periods of economic expansion - have led recent gains, indicating a shift to focusing on a growing economy as Wall Street looks past the budget talks.


Defensive sectors led Wednesday's downturn, with the S&P health care sector index <.gspa> down 1.1 percent.


The Dow Jones industrial average <.dji> dropped 98.99 points, or 0.74 percent, to 13,251.97. The S&P 500 <.spx> lost 10.98 points, or 0.76 percent, to 1,435.81. The Nasdaq Composite <.ixic> fell 10.17 points, or 0.33 percent, to 3,044.36.


Herbalife Ltd shares tumbled 12.1 percent to $37.34 after William Ackman, one of the world's biggest hedge fund managers, said he is shorting the stock of the weight management products company.


Oracle shares helped cap the Nasdaq's loss after the company reported earnings that beat expectations on strong software sales growth. Oracle jumped 3.7 percent to $34.09.


Knight Capital Group Inc climbed 5.4 percent to $3.51 after it agreed to be bought by Getco Holdings in a deal valued at $1.4 billion. The stock, which nearly collapsed after a trading error in August, remains down about 70 percent so far this year.


Shares of Chinese display advertising provider Focus Media Holding Ltd jumped 6.7 percent to $25.52 after it agreed to be bought by a consortium of private equity funds led by the Carlyle Group for about $3.6 billion.


Data showed homebuilding permits touched their highest level in nearly 4-1/2 years in November. The PHLX housing index <.hgx> fell 0.8 percent, but has gained 66.4 percent this year as the housing market has turned the corner.


About 6.9 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, slightly above the daily average so far this year of about 6.45 billion shares.


Advancing and declining issues were almost even on both the NYSE and the Nasdaq.


(Reporting by Rodrigo Campos; Editing by Jan Paschal)



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African National Congress Chooses Business Tycoon as Deputy President





BLOEMFONTEIN, South Africa — In South Africa, a nation where the gap between the rich and poor yawns wider than just about anywhere in the world, Cyril Ramaphosa might seem an unlikely savior to a political party whose base is the poor. His fortune is estimated to top $500 million. He sits on the board of the mining company whose 34 workers were killed in a harsh police crackdown on an illegal strike protesting low pay and miserable living conditions.




Yet when all the votes were counted at the African National Congress’s leadership conference here on Tuesday, Mr. Ramaphosa, a union leader turned business tycoon, had won more than 75 percent of the vote to become deputy president of the party, making him heir apparent to the top job and South Africa’s presidency once the nation’s leader, Jacob Zuma, ultimately leaves office.


Mr. Zuma, who is embattled but popular among the party faithful who attended the conference, easily won a second term as president of the party, beating back a challenge from his deputy, Kgalema Motlanthe.


The vote caps a tumultuous year for the A.N.C. It began with celebrations of the centenary of the party’s founding but quickly descended into party infighting and economic chaos after a series of violent wildcat strikes met the harsh police crackdown that killed the 34 miners. Revelations of corrupt deals and state-sponsored renovations on Mr. Zuma’s house in his home village tarnished his image as the son of a poor family who rose to the highest office in the land.


While the party met, the man who in many ways remains its symbolic and moral center, Nelson Mandela, who led the country out of apartheid and into multiracial democracy, remained in the hospital, 94 and in frail health.


And as if to underscore the uncertainty the nation faces, four men associated with a right-wing Afrikaner group seeking a separate state for whites were charged with treason in court here in Bloemfontein on Tuesday, accused of plotting to bomb the leadership conference and assassinate Mr. Zuma in a plot they code-named “The Slaughter of Mangaung,” a reference to the municipal region where the conference was held.


As was widely expected, the 4,000 delegates here opted to return Mr. Zuma as the party president, making him almost certain to win the presidential election to be held in 2014.


His victory was greeted by wild cheering in the vast tent erected on the campus of a university to hold the delegates. Beneath yellow, black and green bunting, the colors of the A.N.C., they sang “Zuma is the one,” and stomped their feet, waving two fingers in the air, a symbol of support for Mr. Zuma’s second term.


Less expected until recent weeks was the re-emergence of Mr. Ramaphosa on the political stage. As a young lawyer in the 1980s, Mr. Ramaphosa founded the National Union of Mineworkers and led the country’s biggest mine strike in 1987. He played a crucial role in negotiating the transition from white rule to democracy after Mr. Mandela was released from prison in 1990. He also helped draft the country’s Constitution.


He was widely touted as Mr. Mandela’s most likely successor but was passed over in favor of Thabo Mbeki, and went into business instead. His investment company, Shanduka, has made him enormous wealth, with investments ranging from mining to fast food to mobile telecommunications.


Mr. Ramaphosa is in many respects the embodiment of the contradictions and divisions that have rived the A.N.C. in the decades since apartheid ended. He fought alongside other stalwarts of the struggle who remained in South Africa while the A.N.C. and other opposition parties were banned, spending 11 months in solitary confinement as a young man for his agitation against the state. He sacrificed what could have been a lucrative career working for white-owned companies for poorly paid union work.


But his wealth and power since the end of apartheid have also made him an emblem of a party that has gone from resisting a brutally oppressive government to being the dominant party in government and, increasingly, in business. Investment deals made under policies designed to encourage black ownership in the economy have made Mr. Ramaphosa a very prominent member of the new black elite that is viewed with envy and suspicion by millions of poor blacks left far behind.


Recent events have sharpened this perception. Mr. Ramaphosa serves on the board of directors of Lonmin, the platinum mining company whose workers were killed by the police during a wildcat strike in August. He was also widely criticized for bidding more than $2 million to buy a prize buffalo for breeding, though his supporters argue it was an investment, not a vanity purchase, and in any case another farmer outbid him.


“It hasn’t been a particularly good year for him,” said Trevor Manuel, a top A.N.C. leader who has worked closely with Mr. Ramaphosa for years, most recently on South Africa’s Planning Commission, where Mr. Ramaphosa was his deputy.


Some here question whether his vast wealth and long absence from retail politics have put him out of touch with the rank and file of the A.N.C.


“In a party that is grappling above all with inequality, how does it look to have a deputy president who is a billionaire?” asked Adam Habib, a political analyst who has just been named vice chancellor of the University of the Witwatersrand.


Mr. Ramaphosa has bridged the world of white capital and black working people for most of his career. He is a lawyer by training and never actually worked as a miner.


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Google Music adds free iTunes-like song-matching feature









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Kristen Stewart Apologizes for Making Everyone 'So Angry'















12/18/2012 at 06:30 PM EST







Kristen Stewart


Lorenzo Bevilaqua/Disney/Getty


Kristen Stewart is once again saying she's sorry.

A few months after publicly expressing regret over cheating on boyfriend Robert Pattinson with her Snow White and the Huntsman director Rupert Sanders, the actress has some words for everybody else.

"I apologize to everyone for making them so angry," the typically press-shy On the Road star, 22, tells Newsweek. "It was not my intention."

Stewart, who has been the subject of both vitriolic criticism and tremendous support from fans, adds, "It's not a terrible thing if you're either loved or hated."

But at the end of the day, the former Twilight star is primarily focused on her craft.

"I don't care [about people's opinions]," she explains. "It doesn't keep me from doing my s–––."

Addressing her most famous role, that of Bella Swan in the Twilight franchise, she says, "The only relief when it comes to Twilight is that the story is done ... I start every project to finish the mother––, and to extend that [mentality] over a five-year period adapting all of these treasured moments over four books, it was constantly worrying."

As for always being know to a generation of moviegoers as Bella, she says, "As long as people's perspective of me doesn't keep me from doing what I want to do, it doesn’t matter.”

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Experts: Kids are resilient in coping with trauma


WASHINGTON (AP) — They might not want to talk about the gunshots or the screams. But their toys might start getting into imaginary shootouts.


Last week's school shooting in Connecticut raises the question: What will be the psychological fallout for the children who survived?


For people of any age, regaining a sense of security after surviving violence can take a long time. They're at risk for lingering anxiety, depression, post-traumatic stress disorder.


But after the grief and fear fades, psychiatrists say most of Newtown's young survivors probably will cope without long-term emotional problems.


"Kids do tend to be highly resilient," said Dr. Matthew Biel, chief of child and adolescent psychiatry at MedStar Georgetown University Hospital.


And one way that younger children try to make sense of trauma is through play. Youngsters may pull out action figures or stuffed animals and re-enact what they witnessed, perhaps multiple times.


"That's the way they gain mastery over a situation that's overwhelming," Biel explained, saying it becomes a concern only if the child is clearly distressed while playing.


Nor is it unusual for children to chase each other playing cops-and-robbers, but now parents might see some also pretending they're dead, added Dr. Melissa Brymer of the UCLA-Duke National Center for Child Traumatic Stress.


Among the challenges will be spotting which children are struggling enough that they may need professional help.


Newtown's tragedy is particularly heart-wrenching because of what such young children grappled with — like the six first-graders who apparently had to run past their teacher's body to escape to safety.


There's little scientific research specifically on PTSD, post-traumatic stress disorder, in children exposed to a burst of violence, and even less to tell if a younger child will have a harder time healing than an older one.


Overall, scientists say studies of natural disasters and wars suggest most children eventually recover from traumatic experiences while a smaller proportion develop long-term disorders such as PTSD. Brymer says in her studies of school shootings, that fraction can range from 10 percent to a quarter of survivors, depending on what they actually experienced. A broader 2007 study found 13 percent of U.S. children exposed to different types of trauma reported some symptoms of PTSD, although less than 1 percent had enough for an official diagnosis.


Violence isn't all that rare in childhood. In many parts of the world — and in inner-city neighborhoods in the U.S., too — children witness it repeatedly. They don't become inured to it, Biel said, and more exposure means a greater chance of lasting psychological harm.


In Newtown, most at risk for longer-term problems are those who saw someone killed, said Dr. Carol North of the University of Texas Southwestern Medical Center, who has researched survivors of mass shootings.


Friday's shootings were mostly in two classrooms of Sandy Hook Elementary School, which has about 450 students through fourth-grade.


But those who weren't as close to the danger may be at extra risk, too, if this wasn't their first trauma or they already had problems such as anxiety disorders that increase their vulnerability, she said.


Right after a traumatic event, it's normal to have nightmares or trouble sleeping, to stick close to loved ones, and to be nervous or moody, Biel said.


To help, parents will have to follow their child's lead. Grilling a child about a traumatic experience isn't good, he stressed. Some children will ask a lot of questions, seeking reassurance, he said. Others will be quiet, thinking about the experience and maybe drawing or writing about it, or acting it out at playtime. Younger children may regress, becoming clingy or having tantrums.


Before second grade, their brains also are at a developmental stage some refer to as magical thinking, when it's difficult to distinguish reality and fantasy. Parents may have to help them understand that a friend who died isn't in pain or lonely but also isn't coming back, Brymer said.


When problem behaviors or signs of distress continue for several weeks, Brymer says it's time for an evaluation by a counselor or pediatrician.


Besides a supportive family, what helps? North advises getting children back into routines, together with their friends, and easing them back into a school setting. Studies of survivors of the Sept. 11 terrorist attacks found "the power of the support of the people who went through it with you is huge," she said.


Children as young as first-graders can benefit from cognitive-behavioral therapy, Georgetown's Biel said. They can calm themselves with breathing techniques. They also can learn to identify and label their feelings — anger, frustration, worry — and how to balance, say, a worried thought with a brave one.


Finally, avoid watching TV coverage of the shooting, as children may think it's happening all over again, Biel added. He found that children who watched the 9/11 clips of planes hitting the World Trade Center thought they were seeing dozens of separate attacks.


___


EDITOR'S NOTE — Lauran Neergaard covers health and medical issues for The Associated Press in Washington.


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Wall Street climbs on economy bets as it looks past "cliff"

NEW YORK (Reuters) - U.S. stocks rallied on strong volume on Tuesday, capping off the S&P 500's best two-day run in a month, on confidence that a deal would be struck in Washington to avoid painful spending cuts and tax hikes that could hurt the economy.


Banks, energy and technology - sectors that would benefit during economic expansion - led gains as investors remain confident that lawmakers will come to an agreement to avoid the so-called "fiscal cliff" deadline at the end of the year.


The PHLX oil services sector index <.osx> jumped 3.1 percent, with eight of its 15 components up 3 percent or more.


"The view is that the economy is getting better, and that is always good for energy demand," said Shawn Hackett, president at Hackett Financial Advisors in Boynton Beach, Florida.


Hackett said the United States would avoid "whatever the cliff means" for the economy, allowing investors to focus on growth.


President Barack Obama's most recent offer to Republicans in the ongoing budget talks makes concessions on taxes and social programs spending. House Speaker John Boehner said the offer is "not there yet," though he remains hopeful about an agreement. Senate Democrats, however, have expressed concern about cuts to Social Security.


Financial stocks shot higher, as traders bet on a greater demand for loans and a steepening of the yield curve. U.S. government debt sold off Tuesday, with the benchmark 10-year U.S. Treasury note's yield briefly hitting its highest since late October.


The S&P financial sector <.gspf> added 1.5 percent.


The Dow Jones industrial average <.dji> rose 115.57 points, or 0.87 percent, to 13,350.96 at the close. The S&P 500 <.spx> gained 16.43 points, or 1.15 percent, to 1,446.79. The Nasdaq Composite <.ixic> added 43.93 points, or 1.46 percent, to 3,054.53.


It was the S&P 500's first back-to-back gain of more than 1 percent since late July.


Stocks of smaller companies outperformed the broader market, with the Russell 2000 <.rut> up 1.5 percent.


Shares of firearm makers sank in the aftermath of a school shooting in Newtown, Connecticut, on Friday that killed 20 young children and six adults.


Smith and Wesson fell 10 percent to $7.79 on its largest-ever daily volume, though it was still up about 77 percent so far this year. Sturm Ruger and Co slid 7.7 percent Tuesday to $40.60.


Private equity firm Cerberus Capital Management said it would sell gunmaker Freedom Group, whose Bushmaster AR-15 rifle was used in the Connecticut massacre. Dick's Sporting Goods suspended the sale of certain semi-automatic rifles in its stores nationwide.


Technology shares rose, led by Apple , up 2.9 percent at $533.90 after losing nearly 13 percent in the last two weeks. The S&P Information Technology Index <.gspt> rose 1.7 percent.


Arbitron Inc surged 23.6 percent to $47.03 after Nielsen Holdings NV agreed to buy the media and marketing research firm in a deal worth $1.26 billion. Nielsen rose 4.4 percent to $30.92.


About 7.4 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, more than the daily average so far this year of about 6.5 billion shares.


On the NYSE, roughly 14 issues rose for every five that fell, while on the Nasdaq, advancers outnumbered decliners by a ratio of about 5 to 2.


(Reporting by Rodrigo Campos; Editing by Jan Paschal)



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Car Bomb Kills at Least 17 in Pakistani Tribal Region


Qazi Rauf/Associated Press


A car bomb ripped through the women’s waiting area of a bus stop in Pakistan's Khyber tribal region on Monday.







ISLAMABAD, Pakistan — A powerful car bomb exploded near government offices in a town in the northwestern tribal belt on Monday, killing at least 17 people and wounding dozens, local officials said.




The car bomb attack, in the Khyber tribal agency, followed a Taliban assault on the nearby international airport in Peshawar over the weekend that left at least 15 people dead, 10 of them militants, underlining the continued potency of Islamist fighters in the area.


In Monday’s attack, officials said that a vehicle loaded with an estimated 90 pounds of explosives was detonated by remote control in Jamrud, close to Peshawar, which borders the tribal belt.


Although the blast occurred near the offices of a senior government official, its immediate force ripped through the women’s waiting area of a bus stop, said Jahangir Azim, a senior official in the Khyber agency. The dead included four Afghan women and three children, he said.


There was no immediate claim of responsibility for the blast, which damaged shops and vehicles across a wide radius. The dead and an estimated 44 wounded people were taken to hospitals.


Khyber is home to several Islamist militant groups, some of which are affiliated with the Pakistani Taliban, while others are fighting both the Taliban and the government.


Officials said they were unsure whether Monday’s attack was aimed at the government offices or at members of the Zakakhel subtribe, which has recently sided with the government against the Taliban. One bus stop in the vicinity of the blast is used by the Zakakhel to travel to their home area of Tirah Valley, which has recently seen fighting between members of a government-sponsored tribal militia and two rival Islamist groups.


“At the moment we are not in position to allege someone for the blast or to tell exactly what was the motive behind the attack by the perpetrators,” Asmatullah Wazir, a local government official, said by telephone.


In the Taliban attack against the Peshawar airport, five militants died during a failed attempt to break through the airport’s perimeter wall on Saturday night, while another five died during a shootout with security forces at a nearby house on Sunday morning.


At least five other people, including three civilians and two police officers, died in the attack, which was the first concerted attack on the Peshawar airport. Although the Taliban claimed responsibility for the attack, officials identified several of the attackers as Uzbeks, suggesting that elements linked to Al Qaeda had also participated.


Together, the two attacks killed at least 32 people and wounded more than 80, highlighting the challenges facing the security forces in the run-up to general elections that are due in the next six months.


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