Data, eBay earnings lift Wall Street to five-year high

NEW YORK (Reuters) - Wall Street rose on Thursday, with the S&P 500 climbing to a five-year intraday high, on improved housing and jobs data along with better-than-expected results from online marketplace eBay .


The data showed the number of Americans filing new claims for unemployment benefits fell to a five-year low last week, while groundbreaking for homes rose to the fastest pace in four years last month.


Strength in the housing and labor markets is key to sustained growth and higher corporate profits. Job market improvement helps stimulate consumer spending while a recovery in housing means more purchases of appliances, furniture and other household goods as well as a source of employment.


"The real estate numbers all look good, sales looked good, prices looked good, housing starts looked good," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.


"The only thing that still doesn't look really good in my mind are the employment numbers but even the claims were pretty good and inflation seems to be nonexistent so what's to stop the party from going?"


The Dow Jones industrial average <.dji> gained 82.97 points, or 0.61 percent, to 13,594.20. The Standard & Poor's 500 Index <.spx> advanced 8.31 points, or 0.56 percent, to 1,480.94. The Nasdaq Composite Index <.ixic> rose 17.12 points, or 0.55 percent, to 3,134.66.


PulteGroup Inc shares gained 4.9 percent to $20.29 and Toll Brothers Inc advanced 2.2 percent to $35.68. The PHLX housing sector index <.hgx> climbed 2.1 percent.


EBay's shares rose 3 percent to $54.47 a day after it reported holiday quarter results that just beat Wall Street expectations. It gave a 2013 forecast that was within analysts' estimates.


The S&P is on track for its third consecutive advance, which pushed the index above an intraday peak set in September to its highest since December 2007.


But gains were tempered by weakness in the financial sector, with Bank of America down 4.3 percent to $11.27 and Citigroup off 3 percent to $41.22 after they posted their results.


Bank of America's fourth-quarter profit fell as it took more charges to clean up mortgage-related problems. Citigroup posted $2.32 billion of charges for layoffs and lawsuits, while its new chief executive cautioned the bank needed more time to deal with its problems.


The S&P financial sector index <.spsy> slipped 0.14 percent as the only one of the 10 major S&P sectors to decline.


S&P 500 corporate earnings for the fourth quarter are expected to rise 2.3 percent, Thomson Reuters data showed. Expectations for the quarter have fallen considerably since October when a 9.9 percent gain was estimated.


With investors anticipating the current earnings season to be lackluster, their focus will be on the corporate earnings outlook for the months ahead, analysts said.


Shares of Boeing extended recent declines after the United States and other countries grounded the company's new 787 Dreamliner after a second incident involving battery failure. Boeing shed 0.4 percent to $74.05 and is down 1.5 percent for the week so far.


Market breadth was solid, with advancers outpacing decliners on the New York Stock Exchange 2,234 to 650, while on the Nasdaq the ratio was 1,602 to 762 in favor of advancing stocks.


(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)



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Hawaii hometown backs Te'o after girlfriend hoax


LAIE, Hawaii (AP) — People in the small Hawaii hometown of Manti Te'o are offering support for the Notre Dame linebacker, after the story of his girlfriend and her death from leukemia were revealed as a hoax.


No one answered the door Wednesday evening and no one appeared to be inside the modest, single-story wood home of Te'o's parents, Brian and Ottilia Te'o, in the small coastal town of Laie on Oahu's northern shore where Manti Te'o, an All-American and Heisman Trophy finalist, was born.


But members of the mostly Mormon community said they were dumbfounded, and didn't believe he would have knowingly perpetrated such a story. The town of about 6,000 people, roughly an hour's drive from Honolulu, is home to a small satellite campus of Hawaii's Brigham Young University,


Lokelani Kaiahua said Te'o's parents were her classmates, and she knew them to have strong family values they instilled in their children.


"I just don't see something like that being made up from him or having any part of that because they're not those kind of people," she said while sitting and talking with friends a few doors down from the Te'o family home. "Everybody's kind of like 'what is going on?'"


According to media accounts that surrounded Te'o this season, his purported girlfriend, Lennay Kekua, died of leukemia in September. But on Wednesday, the website Deadspin.com posted a lengthy story saying there was no evidence that she ever existed.


Notre Dame officials then confirmed the hoax but were insistent that Te'o was only the victim.


Te'o is a hero and role model to many children in Laie and nearby small towns like Haaula, Kaaawa and Kahuku along the two-lane highway snaking through Oahu's northeastern coast.


Students at Haaula often wear Notre Dame jerseys with his number "5'' on them, and Te'o has returned to the area to talk to students about the importance of staying in school, said school administrator Makala Paakaula, 38.


"He always keeps giving back to his community," Paakaula said.


Te'o should be lauded for uniting Notre Dame during his senior year when he could have left for the NFL, she said.


"It's amazing how he brought together the whole school to become one ohana, one family, where they all belonged, where they all had a purpose," Paakaula said.


Many people expressed anger toward whoever was behind the entire affair.


"If he got hoaxed, that's not his fault — shame on them," Paakaula said, "because he has a very trusting, open heart."


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Did Scientology ad cross line?




The Church of Scientology is also at fault for thinking the advertorial would survive The Atlantic readers' scrutiny, Ian Schafer says.




STORY HIGHLIGHTS


  • The Atlantic published and pulled a sponsored Scientology "story"

  • Ian Schafer: On several levels, the ad was a mistake

  • He says the content was heavy-handed and comments were being moderated

  • Schafer: Experimenting to raise revenue makes sense, but standards should be clear




Editor's note: Ian Schafer is the founder and CEO of a digital advertising agency, Deep Focus, and the alter ego of @invisibleobama. You can read his rants on his blog at ianschafer.com.


(CNN) -- "The Atlantic is America's leading destination for brave thinking and bold ideas that matter. The Atlantic engages its print, online, and live audiences with breakthrough insights into the worlds of politics, business, the arts, and culture. With exceptional talent deployed against the world's most important and intriguing topics, The Atlantic is the source of opinion, commentary, and analysis for America's most influential individuals who wish to be challenged, informed, and entertained." -- The Atlantic 2013 media kit for advertisers


On Monday, The Atlantic published -- and then pulled -- a story titled "David Miscavige Leads Scientology to Milestone Year." This "story" went on to feature the growth of Scientology in 2012.



Ian Schafer

Ian Schafer



Any regular reader of The Atlantic's content would immediately do a double-take upon seeing that kind of headline, much less the heavy-handed text below it, shamelessly plugging how well Scientology's "ecclesiastical leader" Miscavige has done in "leading a renaissance for the religion."


This "story" is one of several "advertorials" (a portmanteau of "advertising" and "editorials") that The Atlantic has published online, clearly designated as "Sponsor Content." In other words, "stories" like these aren't real stories. They are ads with a lot of words, which advertisers have paid publications to run on their behalf for decades. You may have seen them in magazines and newspapers as "special advertising sections."


The hope is that because you are already reading the publication, hey, maybe you'll read what the advertiser has to say, too -- instead of the "traditional" ad that they may have otherwise placed on the page that you probably won't remember, or worse, will ignore.



There's nothing wrong with this tactic, ethically, when clearly labeled as "sponsored" or "advertising." But many took umbrage with The Atlantic in this particular case; so many, that The Atlantic responded by pulling the story from its site -- which was the right thing to do -- and by apologizing.


At face value, The Atlantic did the right thing for its business model, which depends upon advertising sales. It sold what they call a "native" ad to a paying advertiser, clearly labeled it as such, without the intention of misleading readers into thinking this was a piece of journalism.


But it still failed on several levels.


The Atlantic defines its readers as "America's most influential individuals who wish to be challenged, informed, and entertained." By that very definition, it is selling "advertorials" to people who are the least likely to take them seriously, especially when heavy-handed. There is a fine line between advertorial and outright advertising copywriting, and this piece crossed it. The Church of Scientology is just as much at fault for thinking this piece would survive The Atlantic readers' intellectual scrutiny. But this isn't even the real issue.


Bad advertising is all around us. And readers' intellectual scrutiny would surely have let the advertorial piece slide without complaints (though snark would be inevitable), as they have in the past, or yes, even possibly ignored it. But here's where The Atlantic crossed another line -- it seemed clear it was moderating the comments beneath the advertorial.


As The Washington Post reported, The Atlantic marketing team was carefully pruning the comments, ensuring that they were predominantly positive, even though many readers were leaving negative comments. So while The Atlantic was publishing clearly labeled advertiser-written content, it was also un-publishing content created by its readers -- the very folks it exists to serve.


It's understandable that The Atlantic would inevitably touch a third rail with any "new" ad format. But what it calls "native advertising" is actually "advertorial." It's not new at all. Touching the third rail in this case is unacceptable.


So what should The Atlantic have done in this situation before it became a situation? For starters, it should have worked more closely with the Church of Scientology to help create a piece of content that wasn't so clearly written as an ad. If the Church of Scientology was not willing to compromise its advertising to be better content, then The Atlantic should not have accepted the advertising. But this is a quality-control issue.


The real failure here was that comments should never have been enabled beneath this sponsored content unless the advertiser was prepared to let them be there, regardless of sentiment.


It's not like Scientology has avoided controversy in the past. The sheer, obvious reason for this advertorial in the first place was to dispel beliefs that Scientology wasn't a recognized religion (hence "ecclesiastical").


Whether The Atlantic felt it was acting in its advertiser's best interest, or the advertiser specifically asked for this to happen, letting it happen at all was a huge mistake, and a betrayal of an implicit contract that should exist between a publication of The Atlantic's stature and its readership.


No matter how laughably "sales-y" a piece of sponsored content might be, the censoring of readership should be the true "third rail," never to be touched.


Going forward, The Atlantic (and any other publication that chooses to run sponsored content) should adopt and clearly communicate an explicit ethics statement regarding advertorials and their corresponding comments. This statement should guide the decisions it makes when working with advertisers, and serve as a filter for the sponsored content it chooses to publish, and what it recommends advertisers submit. It should also prevent readers from being silenced if given a platform at all.


As an advertising professional, I sincerely hope this doesn't spook The Atlantic or any other publication from experimenting with ways to make money. But as a reader, I hope it leads to better ads that reward me for paying attention, rather than muzzle my voice should I choose to interact with the content.


After all, what more could a publication or advertiser ask for than for content to be so interesting that someone actually would want to comment on (or better, share) it?


(Correction: An earlier version of this article incorrectly said native advertising accounts for 59% of the Atlantic's ad revenue. Digital advertising, of which native advertising is a part, accounts for 59% of The Atlantic's overall revenue, according to the company.)


Follow @CNNOpinion on Twitter.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Ian Schafer.






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Trestman: 'Passion' and 'urgency' to win with Bears









Marc Trestman emphasized passion, urgency and commitment and said he "can't wait to get my hands on" quarterback Jay Cutler when he was introduced Thursday at Halas Hall as the 14th coach in Chicago Bears history.


Trestman, 57, said the Bears were "clearly a franchise that has the highest expectations for its team."


"I do feel the passion, I do feel the urgency, and boy, do I feel the commitment to win," Trestman said.





General manager Phil Emery, in explaining his decision to fire former coach Lovie Smith more than two weeks ago, cited long-running offensive efficiencies for an organization that has typically looked to the defensive side of the ball for its highest leader.


Emery on Thursday described the interview process that led to Trestman this way: "It was an interesting road ... and a road well-traveled." He confirmed that Trestman, Colts offensive coordinator Bruce Arians and Seahawks offensive coordinator Darrell Bevell were the three finalists, with Bevell the first to be eliminated.


As to why he chose Trestman over Arians in the end, Emery cited adaptability, the fact that Trestman has been with numerous NFL teams as an assistant and also coached in the unfamiliar Canadian Football League and excelled at each stop.

"He’s had personal ups and downs, but in the end, where is he? He’s a champion and now he’s the head coach of the Chicago Bears," Emery said. "Do not underestimate Marc Trestman as a cmpetitor. He's as tough-minded as anybody I've been around. That's the kind of guy I want to be in a room with."


The challenge for Trestman will be bringing out the best in Cutler, whom the Bears acquired by mortgaging the future in 2009. The belief then was the young, Pro Bowl gunslinger was the missing piece. He’s played in two playoff games since, winning one. Now, Cutler will be 30 in April and is entering the final year of his contract. His future must be determined in the coming months and Emery made the handling of Cutler a key component of the interview process.


Trestman emphasized the importance of the quarterback position and also the offensive line that protects him.


"I'm going to be responsible for keeping Jay and our quarterbacks safe in the pocket," he said.


As for his role, Trestman said, "I get to be the GPS system of the team. That's the fun part."

Asked about Cutler, Trestman said he spoke with the quarterback recently over lunch and, "I can't wait to get my hands on him, and work with him. I think he's ready.


"This guy loves football. He wants to be great. Hopefully, we can give him some protection and some direction."


Cutler confirmed that he and Trestman had a two-hour sitdown and that neither of them touched lunch. "It was fun," Cutler told WMVP-AM 1000.

"Change isn't always bad," Cutler said. "I said that after we fired Lovie. That was a tough situation for everybody. But getting Marc Trestman and the direction we're going in, it's exciting."

Asked if the Bears had the right coach from an offensive aspect, Cutler said, "I think in every aspect of a coach, we got it right. We're going to hit the ground running. He's a hands-on guys, a high-energy guy, a high-tempo guy and he loves ball. Any time you're around a guy like that, it's infectious. It makes it fun going to work."


Trestman said he will continue to call the offensive plays: "I love calling plays. As long as Phil lets me, I get to do that. If it's in the best interests of the team, that's what I will start out doing."


Trestman termed his expected relationship with Cutler this way: "The No. 1 marriage in all of sports is the marriage between a quarterback and his coach." He said the quarterback "is going to have the keys to the car."


Trestman said he would sit down with Cutler and review every play from every game and that the quarterback would be evaluated "on a macro level and on a micro level. The big things he does that he wants to improve on and we want him to improve on, and the micro level, from taking the snap and dropping back and throwing the football and everything in between."


Asked about the pass/run balance on offense, Trestman said, "The only objective is to score touchdowns."


Under Smith, Dick Jauron and Dave Wannstedt, the three coaches that followed Mike Ditka, the Bears rarely have produced consistent offensive efforts. All three were defensive coordinators before coming to the club. While the Bears were stout defensively throughout Smith’s nine seasons, they were almost always deficient on offense.


With Trestman in place, the Bears will work to revamp the offense on the fly and take advantage of what remains a productive defense with aging core players. Trestman’s long history as a quarterback guru and innovative offensive mind pushed him to the top of a thorough coaching search by Emery.


On defense, Trestman said it all starts with pressuring the opponent's quarterback.


"We've got to hurry 'em, hit 'em and knock 'em down," he said.


Trestman said his first priority would be assembling a staff and said he had the final say. He said some of his assistants from the CFL's Montreal Alouettes could be joining him. Another candidate could be Scott Milanovich, head coach of the Toronto Argonauts and a former Maryland quarterback. Milanovich made a name for himself in the CFL as offensive coordinator of the Alouettes from 2008-2011.


"We've got to put together a staff of high character," he said. "Men who are experts in the science of football."


Asked about Rod Marinelli, Trestman said the veteran defensive coordinator wouldn't be staying.

"I had a chance to talk to Rod," Trestman said. "He's made up his mind I believe to move on."

Trestman said he and Emery would discuss the future defensive leadership.


Asked about Brian Urlacher, Trestman lavished praise on the veteran linebacker but stopped short of saying he definitely will be part of the defense going forward.


"I recognize what he's meant to this locker room," Trestman said.


Trestman said he would be open to playing a 3-4 defense, but that it would depend on his team's personnel and that he was aware of the success the Bears have enjoyed with the 4-3.

During a five-year stint as the head coach of the Alouettes. His team reached the playoffs in five consecutive seasons, winning two Grey Cup championships. Previously, he spent 17 seasons working as an assistant in the NFL for eight different organizations. He last worked for the Dolphins in 2004 under Wannstedt. Now, Trestman has the opportunity to operate his own club in the NFL, fulfilling a lifelong goal.


"Our goal will be to hold up a trophy," Trestman said.





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Sahara hostage siege turns Mali war global


ALGIERS (Reuters) - Twenty-five foreign hostages escaped and six were killed on Thursday when Algerian forces launched an operation to free them at a remote desert gas plant, Algerian sources said, as one of the biggest international hostage crises in decades unfolded.


Fast-moving details of the military operation to free the hostages were difficult to confirm. Algeria's official APS news agency said that the military had freed four foreign hostages, giving no further information.


A local source told Reuters six foreign hostages were killed along with eight captors when the Algerian military fired on a vehicle being used by the gunmen. An Algerian security source said the 25 foreign hostages had escaped.


Mauritania's ANI news agency, which has been in constant contact with the kidnappers, said seven hostages were still being held: two Americans, three Belgians, one Japanese and one British citizen.


The standoff began when gunmen calling themselves the Battalion of Blood stormed the gas plant on Wednesday morning. They said they were holding 41 foreigners and demanded a halt to a French military operation against fellow al Qaeda-linked Islamist militants in neighboring Mali.


ANI and Qatar-based Al Jazeera reported that 34 of the captives and 15 of their captors had been killed when government forces fired from helicopters at a vehicle. Those death tolls, far higher than confirmed by the local source, would contradict the reports that large numbers of foreigners escaped alive.


Britain and Norway, whose oil firms BP and Statoil run the plant jointly with the Algerian state oil company, said they had been informed by the Algerian authorities that a military operation was under way but did not provide details.


As many as 180 Algerian hostages had also been held but managed to flee, the local source said.


The incident dramatically raises the stakes in the French military campaign in neighboring Mali, where hundreds of French paratroopers and marines are launching a ground offensive against rebels after air strikes began last week.


Algerian Interior Minister Daho Ould Kablia said the kidnappers were led by Mokhtar Belmokhtar, a veteran Islamist guerrilla who fought Soviet forces in Afghanistan in the 1980s and had set up his own group in the Sahara after falling out with other local al Qaeda leaders.


A holy warrior-cum-smuggler dubbed "The Uncatchable" by French intelligence and "Mister Marlboro" by some locals for his illicit cigarette-running business, Belmokhtar's links to those who seized towns across northern Mali last year are unclear.


The hostage takers earlier allowed some prisoners to speak to the media, apparently to put pressure on Algerian forces not to storm the compound. An unidentified hostage who spoke to France 24 television said prisoners were forced to wear explosive belts and captors had threatened to blow up the plant.


Two hostages, identified as British and Irish, spoke to Al Jazeera television and called on the Algerian army to withdraw from the area to avoid casualties.


"We are receiving care and good treatment from the kidnappers. The (Algerian) army did not withdraw and they are firing at the camp," the British man said. "There are around 150 Algerian hostages. We say to everybody that negotiations is a sign of strength and will spare many any loss of life."


NUMBERS UNCONFIRMED


The precise number and nationalities of foreign hostages could not be confirmed, with some countries reluctant to release information that could be useful to the captors.


Britain said one of its citizens was killed in the initial storming on Wednesday and "a number" of others were held.


The militants said seven Americans were among their hostages, a figure U.S. officials said they could not confirm.


Norwegian oil company Statoil said nine of its Norwegian staff and three Algerian employees were captive. Britain's BP, which operates the plant with Statoil and Algerian state oil company Sonatrach, said some of its staff were held but would not say how many or their nationalities.


Japanese media said five workers from Japanese engineering firm JGC Corp. were held, a number the company did not confirm. Paris has not said whether any hostages were French. Vienna said one hostage was Austrian, Dublin said one was Irish and Bucharest said an unspecified number were Romanian.


Spanish oil company Cepsa said it had begun to evacuate personnel from elsewhere in Algeria.


Paris said the Algeria attack demonstrated it was right to intervene in Mali: "We have the flagrant proof that this problem goes beyond just the north of Mali," French ambassador to Mali Christian Rouyer told France Inter radio.


President Francois Hollande has received public backing from Western and African allies who fear that al Qaeda, flush with men and arms from the defeated forces of Libya's Muammar Gaddafi, is building a desert haven in Mali, a poor country helpless to combat fighters who seized its north last year.


However, there is also some concern in Washington and other capitals that the French action in Mali could provoke a backlash worse than the initial threat by militants in the remote Sahara.


The militants, communicating through established contacts with media in neighboring Mauritania, said they had dozens of men armed with mortars and anti-aircraft missiles in the compound and had rigged it with explosives.


"We hold the Algerian government and the French government and the countries of the hostages fully responsible if our demands are not met, and it is up to them to stop the brutal aggression against our people in Mali," read one statement carried by Mauritanian media.


They condemned Algeria's secularist government for letting French warplanes fly over its territory to Mali and shutting its border to Malian refugees.


PRESSING ON


The attack in Algeria did not stop France from pressing on with its campaign in Mali. It said on Thursday it now had 1,400 troops on the ground in Mali, and combat was underway against the rebels that it first began targeting from the air last week.


"There was combat yesterday, on the ground and in the air. It happened overnight and is under way now," said Le Drian. Residents said a column of about 30 French Sagaie armored vehicles set off on Wednesday toward rebel positions from the town of Niono, 300 km (190 miles) from the capital, Bamako.


The French action last week came as a surprise but received widespread international support in public. Neighboring African countries planning to provide ground troops for a U.N. force by September have said they will move faster to deploy them.


Nigeria, the strongest regional power, sent 162 soldiers on Thursday, the first of an anticipated 906.


"The whole world clearly needs to unite and do much more than is presently being done to contain terrorism, with its very negative impact on global peace and security," President Goodluck Jonathan said.


Germany, Britain and the Netherlands have offered transport aircraft to help ferry in African troops. Washington has said it is considering what support it can offer.


Many inhabitants of northern Mali have welcomed the French action, though some also fear being caught in the cross-fire. The Mali rebels who seized Timbuktu and other oasis towns in northern Mali last year imposed Islamic law, including public amputations and beheadings that angered many locals.


A day after launching the campaign in Mali, Hollande also ordered a failed rescue in Somalia on Saturday to free a French hostage held by al Qaeda-linked al Shabaab militants since 2009. Al Shabaab said on Thursday it had executed hostage Denis Allex. France said it believed he died in the rescue.


(Reporting by Lamine Chikhi; Writing by Peter Graff; Editing by Giles Elgood)



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Wall Street flat as Apple gains; Boeing drags Dow

NEW YORK (Reuters) - Stocks held near the unchanged mark on Wednesday as concerns about global economic growth and a drop in Boeing shares offset strong bank results and gains in technology stocks.


Goldman Sachs shares hit their highest level since May 31, 2011 as earnings nearly tripled on increased revenue from dealmaking and lower compensation expenses, while JPMorgan Chase said fourth-quarter net income jumped 53 percent and earnings for 2012 set a record.


JPMorgan shares edged up 0.2 percent at $46.44 and Goldman was up 3.5 percent to $140.27. The KBW bank index <.bkx> gained 0.3 percent.


But with only 37 companies in the S&P 500 having reported earnings so far this season, investors are exercising caution until signs of growth can emerge.


According to Thomson Reuters data, S&P 500 earnings growth is now seen up 2.2 percent from a year ago, Thomson Reuters data showed.


"We didn't have much in the way of earnings, we had some of the big banks, but you've got the heart of earnings season coming up and people are sort of on the sidelines here," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.


A slow economic recovery in developed nations is holding back the global economy, the World Bank said on Tuesday, as it sharply scaled back its forecast for world growth in 2013 to 2.4 percent from an earlier forecast of 3.0 percent.


Shares of Dow component Boeing fell 3.3 percent to $74.39, the biggest drag on the Dow, on concerns about its new Dreamliner passenger jets. Japan's two leading airlines grounded their fleets of 787s after an emergency landing, adding to safety concerns triggered by a series of recent incidents.


The Dow Jones industrial average <.dji> dropped 35.95 points, or 0.27 percent, to 13,498.94. The Standard & Poor's 500 Index <.spx> shed 1.60 points, or 0.11 percent, to 1,470.74. The Nasdaq Composite Index <.ixic> gained 2.91 points, or 0.09 percent, to 3,113.68.


Losses were curbed on the S&P 500 and the Nasdaq moved higher on a bounce in Apple shares, which were up 3.6 percent at $503.31 after losses in three straight sessions. Morgan Stanley stamped the tech giant as a "best idea," citing overblown concerns about iPhone shipments. The S&P technology sector index <.splrct> gained 0.5 percent.


"Apple rebounding certainly helps the market - if Apple wasn't rebounding I don't think we would be at a flat level," said Ghriskey.


Talks to take Dell Inc private were at an advanced stage, with at least four major banks lined up to provide financing, two sources with knowledge of the matter told Reuters. Shares fell 4.6 percent to $12.57 after jumping more than 21 percent over the past two sessions.


U.S. consumer prices were flat in December, pointing to muted inflation pressures that should give the Federal Reserve room to prop up the economy by staying on its ultra-easy monetary policy path.


Other data showed U.S. homebuilder confidence in the market for single family homes held steady near seven year highs in January, suggesting the outlook for the housing market remained upbeat.


(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)



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Eagles get their man, hire Oregon's Chip Kelly


PHILADELPHIA (AP) — The Philadelphia Eagles have hired Chip Kelly after he originally chose to stay at Oregon.


The 49-year-old Kelly becomes the 21st coach in team history and replaces Andy Reid, who was fired on Dec. 31 after a 4-12 season.


Kelly, who was 46-7 in four years at Oregon, interviewed with the Eagles, Cleveland Browns and Buffalo Bills after leading the fast-flying Ducks to a victory over Kansas State in the Fiesta Bowl. But he opted to remain at Oregon before changing his mind.


The Eagles are known to have interviewed 11 candidates, including two meetings with Seahawks defensive coordinator Gus Bradley. Philadelphia has won just 12 games the last two seasons, after winning the NFC East in 2010.


"Chip Kelly will be an outstanding head coach for the Eagles," owner Jeffrey Lurie said in a statement. "He has a brilliant football mind. He motivates his team with his actions as well as his words. He will be a great leader for us and will bring a fresh energetic approach to our team."


Kelly was thought to be Philadelphia's first choice in a long, exhaustive process that took many twists. The enigmatic Kelly reportedly was close to signing with the Browns after a long interview on Jan. 4. He met with the Eagles for nine hours the next day and the roller coaster ended when he decided to remain at Eugene, Ore.


At the time, it was the second straight year Kelly had entertained overtures from NFL teams only to reject them. He turned down Tampa Bay's job deep into negotiations last season.


The Eagles interviewed two other high-profile college coaches — Penn State's Bill O'Brien and Notre Dame's Brian Kelly. Both of them elected to stay with their schools and Philadelphia issued a statement saying it would continue its search as planned.


"There is no question we spent a considerable amount of time and effort looking at who we thought were the best collegiate candidates for our head coaching job. We did so knowing that there was a remote chance that these coaches would leave their current posts," the team stated on Saturday. "We understood that going into the process, but we wanted to leave no stone unturned while trying to find the best coach for the Philadelphia Eagles. We have no regrets about the effort we made in that direction and we will continue to proceed as planned in our search."


Bradley was thought to be the leading contender, though former Cardinals coach Ken Whisenhunt and former Ravens coach Brian Billick were in the mix.


That all changed when Kelly had a change of heart.


Known as an offensive innovator, the visor-wearing Kelly built Oregon into a national powerhouse. The Ducks went to four straight BCS bowl games — including a bid for the national championship against Auburn two seasons ago — and have won three Pac-12 championships.


Kelly originally went to Oregon in 2007 as offensive coordinator under Mike Bellotti. Before that, he was offensive coordinator at New Hampshire, where he started devising the innovative hurry-up offense the Ducks are known for now.


Oregon finished last season 12-1. The team was ranked No. 1 and appeared headed for another shot at the national championship until a 17-14 overtime loss to Stanford on Nov. 17.


It's unknown whether the possibility of NCAA sanctions based on Oregon's use of recruiting services factored into Kelly's reversal. Kelly indicated in Arizona that he isn't running from anything.


"We've cooperated fully with them," he said. "If they want to talk to us again, we'll continue to cooperate fully. I feel confident in the situation."


Following the bowl, Kelly said he wanted to get the interview process over "quickly." Turns out, it was anything but.


"It's more a fact-finding mission, finding out if it fits or doesn't fit," Kelly said after the Ducks defeated the Wildcats, 35-17. "I've been in one interview in my life for the National Football League, and that was a year ago. I don't really have any preconceived notions about it. I think that's what this deal is all about for me. It's not going to affect us in terms of we're not on the road (recruiting). I'll get an opportunity if people do call, see where they are.


"I want to get it wrapped up quickly and figure out where I'm going to be."


Kelly, who never said if he was leaning one way or another following the bowl, doesn't have any pro coaching experience, but aspects of his up-tempo offense are already being used by some NFL teams, including New England and Washington.


"I said I'll always listen, and that's what I'll do," he said at the time. "I know that people want to talk to me because of our players. The success of our football program has always been about our guys. It's an honor for someone to say they'd want to talk to me about maybe moving on to go coach in the National Football League. But it's because of what those guys do. I'll listen, and we'll see."


The Eagles fired Reid after two forgettable years. A late flurry brought the team to an 8-8 finish last season, but this season, Philadelphia endured an eight-game losing streak, and dropped 11 of its final 12 games. A 3-1 start soon washed away, and Reid's tenure ended not long after.


Oregon's players gave Kelly a Gatorade bath as the final seconds ticked off the clock vs. Kansas State, and afterward a few of the Ducks seemed resigned to their coach moving on.


"We'll have to see," quarterback Marcus Mariota said. "Whatever he decides to do, we're all behind him. He's an unbelievable coach. He's not only a football coach, but he's someone that you can look to and learn a lot of life lessons from. Whatever happens, happens. But we're all behind him.


"We'll see where it takes us."


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Mangroves Are Nature’s Super Heroes, But They’re Not Invincible






Mangrove forests are the X-Men of the environment: persecuted, little understood, but protecting innocents from death and destruction. Mangroves provide coastal areas with natural barriers from the devastation of hurricanes, cyclones, tsunamis, and tidal waves—super storms that threaten to become the new normal if manmade climate change continues unmitigated. 


Superheroes they may be, but mangroves are declining worldwide due to human activity. A report published this month shows that the largest tract of mangrove forest in the world, the Sundarbans in India and Bangladesh, is degrading rapidly. According to the research, conducted by the Zoological Society of London, as much as 200 meters—that’s one-eighth of a mile—of mangrove forest is disappearing from the coastline each year, weakening the region’s natural protection from extreme weather events.  






MORE: Jordan River, Site of Jesus’ Baptism, Too Polluted for Tourists


Sundarbans translates as “beautiful forests” in the Bengali language. It is home to nearly 500 species of reptiles, amphibians, and mammals, including the endangered Bengali tiger—all of which are threatened by the loss of the mangroves.  


Mangroves are coastal wetlands found in tropical and subtropical areas, characterized by a rich diversity of tree, palm, and plant life that can live in salty, tidal conditions. Mangroves are relatively rare, comprising less than one percent of all forest areas.


But they are also some of the most valuable ecosystems in the world, and they’re far more efficient at sequestering carbon than terrestrial tropical forests. Their disappearance releases stored carbon into the atmosphere; scientists are still debating how much. Intact, mangrove forests may be a key element in the fight against climate change.   


“Mangroves can hold carbon in place for hundreds of years. Most inland forests only hold carbon for about 50 years,” said Alfredo Quarto, executive director of the Mangrove Action Project. “When mangroves are disturbed by shrimp farming or by coastal developments, they release carbon at a high rate.”


Unfortunately, disturbances to mangrove forests are common.


An international team of researchers led by the U.S. Geological Survey (USGS) and NASA recently published the results of a project that mapped the deforestation of mangroves over a 25-year time period. The researchers found that 35 percent of the world’s mangrove forests were lost between 1980 and 2000. Just 6.9 percent of mangroves currently exist within protected areas.


 “The current estimate of mangrove forests of the world is less than half what it once was, and much of that is in a degraded condition,” lead author Chandra Giri of USGS told Science Daily


In North America, several species of mangroves surround parts of the Gulf of Mexico. Florida has an estimated 469,000 acres of mangroves, according to the state’s department of environmental protection, providing protected nursery areas for fish, crustaceans, and shellfish, nesting areas for coastal birds, and ecosystem services like nutrient trapping and cycling.


The devastating 2004 tsunami in the Indian Ocean showed what mangroves could do for human settlements, too. The tsunami killed more than 200,000 people—and experts say the scale of disaster would have been even larger without the mangrove forests, which shielded coastal inhabitants from the sheer force of the tsunami’s waves. 


Agricultural production, tourist development, urban expansion, and especially shrimp farming makes it hard for these valuable forests to do their work. Think of these activities as the kryptonite of mangroves, threatening their effectiveness and range.


The Mangrove Action Project is leading a campaign to restore lost mangroves and educate the public about what they can do to help stop the decimation. Alfredo Quarto says shrimp farming in the global south is a major cause of mangrove deforestation—and that to help mangroves, we have to cut back on the shrimp scampi. 


“We’re seeing a huge demand growing in the U.S. for shrimp from Southeast Asia, South Asia, and Latin America,” Quarto told TakePart. “Shrimp farmers in many countries move into new areas every few years, causing the loss of mangroves. We want people to know about the problem and play an active role in what they consume. We could cut back our shrimp consumption and not be hurting in terms of the possibilities on our plate.”


Related Stories on TakePart:


Stunning Photos: China’s Yantze River Mysteriously Turns Bright Red


• Millions of Fish-Killing Plastic Pellets Wash Up on Hong Kong Beaches


• Raw Sewage: The Next Environmental Catastrophe?



Alison Fairbrother is the director of the nonpartisan Public Trust Project, which investigates and reports on misrepresentations of science by corporations and government. She has written for the Washington Monthly, the Washington Spectator, Grist, and Politics Daily, among others. Alison is based in Washington DC. @adfairbrother | TakePart.com


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Gruesome toll of cluster bombs in Syria






STORY HIGHLIGHTS


  • Human Rights Watch says cluster bombs were used on Syrian town of Latamneh

  • Cluster bombs release dozens of smaller bombs, which can maim or kill long after impact

  • Syrian regime has previously denied cluster bombs on civilians




Editor's note: Mary Wareham is the Arms Division's Advocacy Director for Human Rights Watch and chief editor of 'Cluster Munition Monitor 2012.'


(CNN) -- It was cloudy the afternoon of January 3 when residents say the cluster bombs fell on the Syrian town of Latamneh.


Three rockets containing the cluster munitions fell in nearby fields, apparently doing no harm, but a fourth landed on the street between residential buildings. Its impact was devastating.


One man was driving down the street when submunitions from the rockets exploded, killing him instantly, residents said. Fifteen civilians walking down the street or in their homes were wounded, including women and children, according to two residents and video evidence. Residents said that an hour after the attack, a submunition that had failed to detonate on impact killed a man who tried to remove it from his yard. It exploded in his hands.



Mary Wareham

Mary Wareham



Since mid-2012, Human Rights Watch and others have reported several times on civilian casualties caused by Syrian use of air-dropped cluster bombs, but Latamneh and other recent attacks are the first known instances of Syrian use of ground-based cluster munitions. The rockets were apparently launched from the vicinity of nearby Hama airport, which is under government control.


Evidence we have seen suggests that Syrian government forces delivered the 122mm cluster munition rockets containing submunitions using a BM-21 Grad multi-barrel rocket launcher, a truck-mounted system capable of firing 40 rockets nearly simultaneously with a range of 4 to 40 kilometers (2.5 to 25 miles). Grad rocket launchers are notorious for their inability to be accurately targeted due to their lack of a guidance system. This exacerbates the danger from the wide-area effect of the submunitions the rockets contain.


More: Syrian regime denies use of cluster bombs


Many countries, including Lebanon and Cambodia, have experienced civilian casualties from similar types of submunitions, both at the time of attack and from submunitions that didn't explode on initial impact. Each submunition is the size of a D-cell battery with a distinctive white ribbon, and the design of their fuze system makes each one very sensitive and liable to detonate if disturbed.


After years of civilian harm caused by cluster munitions, Israel's massive use of the weapons in southern Lebanon in 2006 helped propel governments into action. Working with civil society groups such as Human Rights Watch and international organizations, a broad-based coalition of like-minded governments sought to do something to reduce the unacceptable harm caused by cluster munitions.


The resulting Convention on Cluster Munitions, adopted May 30, 2008, comprehensively prohibits cluster munitions and requires their clearance and assistance to victims. A total of 111 nations, including many former users, producers, and stockpilers of the weapon, as well as countries contaminated by cluster munition remnants, have embraced the ban convention.


Yet there has been limited interest in the Middle East and North Africa regions, where just three countries—Iraq, Lebanon, and Tunisia—are onboard the treaty banning cluster bombs. Some nations, such as Jordan, say they need more time to study the convention's provisions, while others including Egypt, Iran, and Israel have produced, imported, exported, and stockpiled cluster munitions.


The 122mm cluster munition rockets used by Syria bear the markings of the Egyptian state-owned Arab Organization for Industrialization and an Egyptian company called Sakr Factory for Development Industries. Syria could have bought these cluster munitions from Egypt, received them through military cooperation, or acquired them another way. With no transparency, it is impossible to say how or when they were made or transferred, though it is likely Syria acquired them long ago.


Syria's relentless use of cluster munitions, including in populated areas, is yet another sign of its blatant disregard for international law and the protection of its own civilians. Syria's use of cluster munitions runs counter to the new international standard being created by the Convention on Cluster Munitions, rejecting any use of the weapons.


The preventive impact of the convention and the standard it is establishing can already be seen as countries that have joined the ban rapidly destroy their stockpiles of cluster munitions.


In Syria, every time the government has used cluster munitions and other explosive weapons, a lethal legacy of unexploded ordnance is created. Given the terrible humanitarian impact, all governments, regardless of their position on joining the ban convention, should press Syria to stop using cluster munitions.







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Obama unveils biggest gun-control push in decades

WASHINGTON - President Barack Obama proposed a new assault weapons ban and mandatory background checks for all gun buyers on Wednesday as he tried to channel national outrage over the Newtown school massacre into the biggest U.S. gun-control push in decades.


Rolling out a wide-ranging plan for executive and legislative action to curb gun violence, Obama set up a fierce clash with the powerful U.S. gun lobby and its supporters in Congress, who will resist what they see as an encroachment on constitutionally protected gun rights.


Obama presented his agenda at a White House event in front of an audience that included relatives of some of the 20 first-graders who were killed along with six adults by a gunman on Dec. 14 at Sandy Hook Elementary School in Newtown, Connecticut.


“We can't put this off any longer,” Obama said, vowing to use “whatever weight this office holds” to make his proposals reality. “Congress must act soon.”


Until now, Obama had done little to rein in America's gun culture during his first four years in office. But just days before his second inauguration, he appears determined to champion gun control in his next term with a concerted drive for tighter laws and other steps aimed at preventing new tragedies like the one at Newtown.


The proposals stem from a month-long review led by Vice President Joe Biden, who on orders from Obama met with advocates on both sides, including representatives from the weapons and entertainment industries.


Obama's plan calls on Congress to renew a prohibition on assault weapons sales that expired in 2004, a requirement for criminal background checks on all gun purchases, including closing a loophole for gun show sales, and a new federal gun trafficking law - long sought by big-city mayors to keep out-of-state guns off their streets.


He also announced 23 steps he intends to take immediately without congressional approval. These include improvements in the existing system for background checks, lifting the ban on federal research into gun violence, putting more counselors and “resource officers” in schools and better access to mental health services.


ASSAULT WEAPONS BATTLE


The most politically contentious piece of the package is Obama's call for a renewed ban on military-style assault weapons, a move that Republicans who control the House of Representatives are expected to oppose.


The Newtown gunman, 20-year-old Adam Lanza, used a Bushmaster AR-15 type assault rifle to shoot his victims, many of them 6- and 7-year-olds, before killing himself.


Underscoring the tough political fight ahead, the National Rifle Association, launched a scathing advertising campaign against Obama's gun control effort and deployed its representatives in force on Capitol Hill.


The NRA, which says it has about 4 million members, took aim at Obama in a stinging TV and Internet spot, accusing him of being “just another elitist hypocrite” for accepting Secret Service protection for his two daughters but turning down the lobby group's proposal to put armed guards in all schools.


As he announced the new gun measures, Obama was flanked on the stage by children from around the country chosen from among those who sent letters to him about gun violence and school safety.


“We should learn from what happened at Sandy Hook. I feel really bad,” a boy wrote in a portion that Obama read from the podium.


With gun ownership rights enshrined in the U.S. Constitution, gun restrictions have long been a divisive - and risky - issue in American politics.


But polls show that public sentiment shifted in favor of increased gun-control measures after the Newtown shooting, and Obama hopes to take advantage while there is a mood for action in Washington.


However, the White House is mindful that the clock is ticking. The usual pattern after U.S. shooting tragedies is that memories of the events soon fade, making it hard to sustain a push for gun policy changes.


Obama acknowledged the political challenges but made clear that he is prepared to take on the NRA, despite its widespread support among Republicans and significant backing among Democrats.


He warned that opponents of his effort would try to “gin up fear” and urged lawmakers to think more about the safety of schoolchildren than trying to “get an ‘A' grade from the gun lobby that supports their campaign.”


Obama's plan appears to tread cautiously on the question of whether violent movies and video games contribute to the gun violence, which would open up issues of freedom of expression.


A senior administration official said, however, that Obama would be asking for $10 million for the U.S. Centers for Disease Control and Prevention to study the root causes of gun violence, including any relationship to video games and media images.


Seeking to jump-start his plan, Obama also nominated Todd Jones to head the Bureau of Alcohol, Tobacco and Firearms, quietly abandoning Andrew Traver, whose nomination for the job has long been stalled. Jones is currently the acting director of the law enforcement agency.


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