Wall Street edges up; Dow and S&P near records

NEW YORK (Reuters) - Stocks rose modestly on low volume on Thursday after strong economic data, but the proximity of record highs for the Dow and the S&P 500 gave investors a reason to keep gains in check.


The U.S. economy grew slightly in the fourth quarter, reversing an earlier estimate showing contraction, and a drop in new claims for unemployment benefits last week added to a string of data that suggests the economy improved early this year.


Still, an even higher revision to GDP data was expected, and the jobless claims extended a trend baked into stock prices.


The low volume shows a lack of conviction from new buyers, according to Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York.


Polcari the recent gains are the reaction to Monday's selloff, but there are not enough catalysts to take indexes much higher.


"Don't expect the market to hit new highs today," he said.


In afternoon trading, just over 3 billion shares had changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT.


The Dow was within striking distance of its record high after a year-to-date advance of almost 8 percent. The Dow Jones Transportation Average <.djt>, seen as a bet on future growth, is up 13 percent this year, and the 20-stock index hit a record intraday high earlier on Thursday.


The Dow Jones industrial average <.dji> rose 61.32 points or 0.44 percent to 14,136.69. The S&P 500 <.spx> gained 8.03 points or 0.53 percent to 1,524.02. The Nasdaq Composite <.ixic> added 17.14 points or 0.55 percent, to 3,179.67.


The Dow's record closing high, set on October 9, 2007, stands at 14,164.53, while the Dow's intraday record high, set on October 11, 2007, stands at 14,198.10.


The S&P 500 is up 0.25 percent this week and is on track to post its fourth straight month of gains.


Equity markets suffered steep losses earlier in the week on concerns about the impact of an Italian election on the European economy, but stocks bounced back on strong data and recent comments by Federal Reserve Chairman Ben Bernanke that showed continued support for the Fed's economic stimulus policy.


Gains in Limited Brands and Netflix , both up nearly 4 percent, led the way among consumer stocks. Shares of Limited Brands, the parent of retailers Victoria's Secret and Bath & Body Works, shot up 3.8 percent to $46.21. The stock of video streaming service Netflix jumped 3.8 percent to $191.24.


In contrast, shares of J.C. Penney , however, slid 14.9 percent to $18.01 after the department store operator reported a steep drop in sales on Wednesday. Groupon Inc also fell on weak revenue, with the daily deals company's stock off 19.2 percent at $4.83.


Cablevision shares tumbled 8.8 percent to $14.11 after the cable provider took a $100 million hit on costs related to Superstorm Sandy and posted deeper video customer losses than expected.


On a positive note, Mylan Inc shares were on track to close at their highest ever after the generic drugmaker posted a 25 percent rise in fourth-quarter profit and said it will buy a unit of India's Strides Arcolab Ltd. Mylan's stock gained 4.2 percent to $29.78.


Investors were keeping an eye on the debate in Washington over U.S. government budget cuts that will take effect starting Friday if lawmakers fail to reach agreement on spending and taxes. President Barack Obama and Republican congressional leaders arranged last-ditch talks to prevent the cuts, but expectations were low that any deal would emerge.


With 93 percent of the S&P 500 companies having reported results so far, 69.5 percent have beaten profit expectations, compared with a 62 percent average since 1994 and 65 percent over the past four quarters, according to Thomson Reuters data.


Fourth-quarter earnings for S&P 500 companies are estimated to have risen 6.2 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.


(The story corrects to show S&P up 0.25 pct this week, not 2 percent, in paragraph 11.)


(Reporting by Rodrigo Campos; Additional reporting by Ryan Vlastelica; Editing by Nick Zieminski and Jan Paschal)



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Syria war is everybody's problem






STORY HIGHLIGHTS


  • NEW: France considers sending Syrian rebels night-vision gear and body armor, a source says

  • Britain's foreign secretary says the UK will announce new aid soon

  • The statements after European Union loosens restrictions to allow nonlethal aid to rebels

  • The U.S. will also send non-lethal aid to rebels for first time, plus $60 million in administrative aid




Rome (CNN) -- The United States stepped further into Syria's civil war Thursday, promising rebel fighters food and medical supplies -- but not weapons -- for the first time in the two-year conflict that has claimed more than 60,000 lives and laid waste to large portions of the country.


Meanwhile, European nations began to explore ways to strengthen rebel fighters that stop short of arming them after a European Council decision allowing such aid to flow to Syria.


U.S. Secretary of State John Kerry said the aid would help fighters in the high-stakes effort to topple Syrian President Bashar al-Assad, a conflict that has already spawned an enormous humanitarian crisis as refugees flee the fighting.


The ongoing fighting also poses the persistent threat of widening into a destabilizing regional crisis, including concerns that Hezbollah, Iran or others could gain control in Damascus after al-Assad's government falls.


"The United States' decision to take further steps now is the result of the continued brutality of a superior armed force propped up by foreign fighters from Iran and Hezbollah, all of which threatens to destroy Syria," Kerry said after meeting opposition leaders in Rome.


Kerry didn't say how much that aid would be worth, but did announce that the United States would separately give $60 million to local groups working with the Syrian National Council to provide political administration and basic services in rebel-controlled areas of Syria.








READ: U.S. weighing nonlethal aid to Syrian opposition


That's on top of $50 million in similar aid the United States has previously pledged to the council, as well as $385 million in humanitarian assistance, Kerry said.


"This funding will allow the opposition to reach out and help the local councils to be able to rebuild in their liberated areas of Syria so that they can provide basic services to people who so often lack access today to medical care, to food, to sanitation," he said.


Islamist Influence


That aid is partly an effort to hem in radical Islamist groups vying for influence in Syria after the fall of al-Assad, a senior State Department official told CNN.


"If the Syrian opposition coalition can't touch, improve and heal the lives of Syrians in those places that have been freed, then extremists will step in and do it," the official said.


Sheikh Ahmed Moaz al-Khatib, president of the Syrian National Council, said concerns about Islamist influence had been overstated.


"We stand against every radical belief that aims to target Syria's diverse social and religious fabric," he said.


READ: Inside Syria: Exclusive look at pro-Assad Christian militia


U.S. officials hope the aid will help the coalition show what it can do and encourage al-Assad supporters to "peel away from him" and help end the fighting, the official said.


The opposition council will decide where the money goes, Kerry said.


But the United States will send technical advisers through its partners to the group's Cairo headquarters to make sure the aid is being used properly, the senior State Department official said.


Additional aid possible


The European Council carved out an exception in its sanctions against Syria on Thursday to allow for the transfer of nonlethal equipment and technical assistance for civilian protection only.


The council didn't specify what kind of equipment could be involved.


British Foreign Secretary William Hague said Friday on Twitter that his country would be pledging new aid because "we cannot stand still while the crisis worsens and thousands of lives are at stake."


A diplomatic official at the French Foreign Ministry told CNN that France is studying the possibility of supplying night-vision equipment or body armor.


"It is in the scope of the amendment," the official said.


In the United States, President Barack Obama is thinking about training rebels and equipping them with defensive gear such as night-vision goggles, body armor and military vehicles, according to sources familiar with the discussions.


The training would help rebels decide how to use their resources, strategize and maybe train a police force to take over after al-Assad's fall, one of the sources said.


READ: Syrian army in Homs is showing strains of war


Kerry did not announce that sort of aid Thursday, but said the United States and other countries backing the rebels would "continue to consult with each other on an urgent basis."


An official who briefed reporters said the opposition has raised a lot of needs in the Rome meetings and the administration will continue to "keep those under review."


"We will do this with vetted individuals, vetted units, so it has to be done carefully and appropriately," the official said.


Humanitarian crisis


The conflict began with demands for political reform after the Arab Spring movement that swept the Middle East and Africa, but descended into a brutal civil war when the al-Assad regime began a brutal crackdown on demonstrators.


At least 60,000 people have died since the fighting began in March 2011, the United Nations High Commissioner for Human Rights said in early January.


Another 940,000 had fled the country as of Tuesday, while more than one in 10 of Syria's 20 million residents have been forced to move elsewhere inside the country because of the fighting, the Office of the United Nations High Commissioner for Refugees said.


The situation is nearing crisis proportions, with the dramatic influx of refugees threatening to break the ability of host nations to provide for their needs, Assistant High Commissioner Erika Feller told the U.N. Human Rights Council on Tuesday


"The host states, including Jordan, Lebanon, Turkey, Iraq, Egypt and the North African countries, have been exemplary in their different ways, but we fear the pressure will start to overwhelm their capacities," she told the council, according to a text of her remarks posted on the United Nations website.


Al-Khatib said it's time for the fighting to stop.


"I ask Bashar al-Assad for once, just once, to behave as a human being," he said. "Enough massacres, enough killings. Enough of your bloodshed and enough torture. I urge you to make a rational decision once in your life and end the killings."


READ: Syrian war is everybody's problem


Jill Dougherty reported from Rome, and Michael Pearson reported and wrote from Atlanta. CNN's Nick Paton Walsh and Elise Labott also contributed to this report.






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First lady brings campaign for physical education to Chicago

First Lady Michelle Obama announced a new initiative in Chicago Thursday called "Let's Move Active Schools," which encourages physical education in schools. ( WGN - Chicago)









First lady Michelle Obama brought her high energy "Let's Move" campaign to Chicago today, where she announced a new phase of the initiative that will place a greater emphases on physical activity.

The "Active Schools" initiative, funded primarily by a $50 million grant from Nike Inc., will help pay for new physical education programs in schools that meet exercise standards.






Surrounded by athletic superstars including tennis champion Serena Williams, gymnast Gabby Douglas, San Francisco 49ers quarterback Colin Kaepernick and "The Biggest Loser" trainer Bob Harper, the first lady told 6,000 cheering Chicago Public Schools students gathered around the stage that they have the potential to be great.

"The only thing separating you out there and us on the stage is the choices you make in life," Obama said, after returning to the stage dressed in red and black exercise wear. Earlier in the program she wore a black business suit while thanking Nike and other corporations for supporting the program.

The athletes led the crowd of screaming and jumping students in an exercise routine at McCormick Place, 2301 S. Lake Shore Dr. The first lady and Mayor Rahm Emanuel, dressed in exercise clothes, joined in the high energy routine with loud techno music and colorful strobe lights.

The Nike donation, delivered over five years, will allow schools to partner with community organizations and other groups to provide exercise programs  to benefit children. Schools also will be able to implement physical education programs during the school day.

Education Secretary Arne Duncan, in an interview prior to the event, called the violence in Chicago "staggering" and suggested that such after school programs could have an impact on curbing it.

"Our families, our communities, our children deserve so much better," he said. "We have to allow our children to grow up in a safe environment."

Chicago is the third stop on the first lady's multi-city tour observing the 3rd anniversary of the "Let's Move" initiative.

As part of Chicago's efforts to curb obesity, officials announced a "Healthy CPS Action Plan," giving schools a comprehensive plan to improve health and wellness of students.

Earlier today, the Chicago Department of Public Health released new obesity numbers for Chicago Public Schools students. According to the report, 36.5 percent of children entering kindergarten are overweight or obese, as well as 48.6 percent of 6th graders and 44.7 percent of 9th graders.

dglanton@tribune.com

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Wall Street climbs 1 percent on Bernanke, economic data


NEW YORK (Reuters) - All three major U.S. stock indexes rose more than 1 percent on Wednesday and the S&P 500 posted its best daily percentage gain since January 2 as Federal Reserve Chairman Ben Bernanke remained steadfast in his support of the Fed's stimulus policy.


Based on the latest available data, the Dow Jones industrial average <.dji> was up 175.24 points, or 1.26 percent, at 14,075.37. The Standard & Poor's 500 Index <.spx> was up 19.05 points, or 1.27 percent, at 1,515.99. The Nasdaq Composite Index <.ixic> was up 32.61 points, or 1.04 percent, at 3,162.26.


(Reporting by Caroline Valetkevitch; Editing by Kenneth Barry)



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AP Source: 49ers to send Smith to KC


Alex Smith is headed to Kansas City, the first major acquisition by the Chiefs since Andy Reid took over as coach.


A person with knowledge of the trade told The Associated Press on Wednesday that the Chiefs have agreed to deal for the 2005 top overall draft pick who lost his starting quarterback job in San Francisco to Colin Kaepernick last season.


The person spoke on condition of anonymity because the trade does not become official until March 12, when the NFL's new business year begins.


Another person familiar with the deal said the 49ers will get a second-round draft pick in April, No. 34 overall, and a conditional pick in the 2014 draft.


Fox Sports first reported the deal.


Smith sustained a concussion Nov. 11 and Kaepernick played well in his place. Coach Jim Harbaugh stuck with him even when Smith got healthy, and Kaepernick led the 49ers to the NFC championship and a close loss to Baltimore in the Super Bowl.


The 28-year-old Smith struggled for most of his career in San Francisco, plagued as much by coaching and coordinator changes as by his own indecisiveness. But when Harbaugh became coach, Smith blossomed. He was among the league leaders in passer rating (104.1) with a 70.2 completion percentage when he was injured in a 24-24 tie against St. Louis.


Smith never started again for the 49ers, but now will replace Matt Cassel in Kansas City.


The Chiefs went 2-14 in 2012, earning the top pick in April's draft. But with no standout quarterbacks coming out of college this year, they quickly turned to finding a veteran.


Reid was fired by Philadelphia after 14 highly successful seasons, although the Eagles went 4-12 last year. Kansas City made him the first coach hired to fill a vacancy in January — there were eight of them — and the Chiefs also fired general manager Scott Pioli.


Now Reid has found his quarterback, and Smith has found another starting job.


Kansas City also has Brady Quinn on the roster, and he started eight games last season, going 1-7.


The 49ers, meanwhile, will be searching for a veteran to back up Kaepernick, their second-round draft choice in 2011.


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Why Italians keep voting for Berlusconi




















Photos: Berlusconi through the years


Berlusconi through the years


Berlusconi through the years


Berlusconi through the years


Berlusconi through the years


Berlusconi through the years


Berlusconi through the years


Berlusconi through the years


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STORY HIGHLIGHTS


  • Scandal-plagued three time ex-premier Silvio Berlusconi finished second in Italy's election

  • Italians and non-Italians have very different views of Berlusconi, argues journalist Bill Emmott

  • For all his faults, Emmott says Berlusconi did better than most at listening to his voters




Editor's note: Bill Emmott is a British journalist and was the editor of The Economist from 1993 to 2006. His book "Good Italy, Bad Italy" was published in English in 2012, and he is the narrator of "Girlfriend in a Coma," a new documentary about Italy's current crisis.


(CNN) -- On the subject of Silvio Berlusconi Italians and non-Italians are, to paraphrase George Bernard-Shaw's famous quip about Britain and America, divided by a common political language.


We think we share the view that in a political world dominated by mass communications, there is little room for forgiveness about scandals, or other personal failures, or a poor record in office. Yet on those grounds, Berlusconi should have died a political death long ago, rather than coming a very close second in this week's Italian elections.



Bill Emmott

Bill Emmott



Foreigners, perhaps, will always remain baffled by Berlusconi's success in continuing to attract voters. But Italians, horrified by him though plenty of them are, tend to be a lot less surprised. That is because they think of him in context, rather than in isolation. In Italian politics, the context is all.


What this means, and what it meant for Berlusconi's remarkable feat in nearly doubling his share of the vote between his opinion poll ratings in November 2012 and the election itself, can be laid out in the following evidently misleading indicators:


He makes unbelievable promises. In part this is true: one of Berlusconi's traits is his willingness to say one thing today and the opposite tomorrow, to attract attention from different groups or on different occasions, totally without shame. Italians know this, and those who support him tend to see it as an endearing part of his character, part of his desire to entertain and to please. But also it is misleading: the key promise he made during the 2013 election campaign was entirely believable -- that he would cut or even abolish a dreaded property tax, known by its Italian initials as IMU.


His record makes him untrustworthy. Yes, on overall economic policy. But not on taxes. He has promised to cut them before, and has delivered on at least some of those promises. The promise to cut IMU was made in an incredibly artful way, as he wrote to voters saying he would pay them back for the tax from his own pocket, which very few will have believed. But that did not matter: it drew attention to the proposal in an eye-catching way, and reinforced the only important point -- that he would cut the tax.


Opinion: Italy's election leaves country, and eurozone, on financial high-wire










He is irresponsible. Yes, but so is almost everyone to the cynical Italian political mind. His plan for how to finance this tax cut had as many holes in it as a sieve, but that did not really matter. It would have to be financed by taxes on other people, or cuts in spending on other things. Fine, said his voters: at least this awful tax will go. In offering a relentless focus on that tax, he showed that he was listening to the pain of his voters and taking them seriously, rather than talking down to them like most other parties.


His trials and sex scandals make him a national shame. Not really, though at times his behavior has stretched even the Italian tolerance. But the context is important: plenty of people think the justice system works disastrously badly in Italy, so if Berlusconi is caught up in it -- like so many others -- then so what? And his sex scandals are really part of his own marketing plan: he cavorts with scantily clad young women in order to make himself look glamorous, young, entertaining and happy. Moreover, his antics with women act as a distraction from his other weaknesses, like a kind of tranquillizer for those who might otherwise get angry with him. A lot of Italians, especially young women, hate him for this. But enough either don't care or are sympathetic enough to him to mean that this does not harm him fatally in political terms.


His opponents are more statesmanlike and responsible. Yes, that is true of Mario Monti, the caretaker prime minister for the past year who then decided to run in the elections with a centrist list of candidates. But it is not particularly true of his big opponents -- including the left-wing Democratic Party, which has its own scandals, its own selfish interests and, during the election campaign, its own evidence of the abuse of political power in the case of Italy's third-largest (and oldest) bank, Monte dei Paschi di Siena, whose business was allegedly run and distorted in the interests of local Democratic Party politicians in that area. So the PD (by its Italian initials) is also viewed as selfish by the public, neutralizing Berlusconi's disadvantage on that measure. Since both the PD leader, Pier Luigi Bersani, and Monti are dull, leaden communicators who failed to offer any positive, hopeful message for their voters, the way was opened for Berlusconi.


News: Italy seeks way out of political chaos


Only one party in the election really stood for change: the Five Star Movement of Beppe Grillo. This meant that Berlusconi's old-fashioned, tax-cutting message, geared towards preserving his own political power, had plenty of space in which to operate. And although Berlusconi did not stand for change, he was at least cheerful, smiling and entertaining.


Politics is now all about personalities, as was shown by the rise of Grillo, but he and Berlusconi are opposites in this regard. It is true that the discrediting of traditional political parties, combined with the preeminence of television, has given personalities a huge advantage in Italian politics, even if neither the PD nor Monti seemed able to grasp this. Personalities and even personal stories breed attention and loyalty, even if from different groups. One of the last Italian politicians to understand and exploit this was, unfortunately, Benito Mussolini.


Oh, and did I forget to mention that Berlusconi owns Italy's three main commercial TV channels and its biggest advertising sales agency, and has billions of euros in cash to hand around to supporters and allies? Well, that isn't a misleading indicator. But it is a reason, perhaps too obvious to dwell upon, for Berlusconi's continuing success at the ripe old age of 76.


The opinions expressed in this commentary are strictly those of Bill Emmott.






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Obama cites Navy threat, immigrants freed as cuts loom

Speaker of the House John Boehner tells Scott Pelley in a "CBS Evening News" interview that a budget deal is now out of his hands.








NEWPORT NEWS, Va. —





President Barack Obama on Tuesday warned of threats to Navy readiness and the government released hundreds of illegal immigrants due to budget pressure as automatic government spending cuts crept closer.

In the latest event staged by the White House to warn of the possible damage to public services, Obama spoke at the Newport News Shipbuilding shipyard where scheduled maintenance to the aircraft carrier USS Abraham Lincoln has been delayed by the budget crisis.

President Barack Obama on Tuesday warned of threats to Navy readiness and the government released hundreds of illegal immigrants due to budget pressure as automatic government spending cuts crept closer.

In the latest event staged by the White House to warn of the possible damage to public services, Obama spoke at the Newport News Shipbuilding shipyard where scheduled maintenance to the aircraft carrier USS Abraham Lincoln has been delayed by the budget crisis.

"The threat of these cuts has already forced the Navy to cancel the deployment, or delay the repair of certain aircraft carriers. One that's currently being built might not get finished," he warned.

The $85 billion across-the-board budget cuts are due to begin on Friday, and might eventually force the government to scale back on a host of services such as air traffic control, law enforcement and food safety inspections.

"These cuts are wrong. They are not smart. They're not fair. They are a self-inflicted wound that doesn't have to happen," he told workers in Newport News, Virginia.

In a move criticized by Republicans as a dangerous political stunt, the U.S. Immigration and Customs Enforcement agency released several hundred detained illegal immigrants in order to save money in preparation for the cuts.

An agreement in Congress would halt the cuts, but with days to go before the ax starts to fall, the two parties do not agree on what to replace them with. There have been hardly any budget talks between the parties since New Year.

Republicans seek different, more targeted, spending cuts than entailed in "sequestration," as the automatic cuts are known in Washington budget parlance. They complain that Obama is overplaying worries about sequestration to promote long-held plans to close tax loopholes.

House of Representatives Speaker John Boehner accused Obama of using "our military men and women as a prop in yet another campaign rally to support his tax hikes."

Boehner, under pressure by conservatives not to cave to Obama's demand for higher taxes, said members of the Democratic-controlled Senate need to "get off their ass" and pass legislation that would blunt the impact of the cuts.

In the Senate, Republicans struggled to come up with a unified plan for replacing the cuts, with Senate Republican leader Mitch McConnell saying lawmakers should simply pass a law giving the president flexibility on how the reductions would be carried out. Obama rejected that idea.

In a sign of how far they are from halting sequestration, congressional Republicans and the White House have been trying to blame each other for the cuts, which both Democrats and Republicans agreed to in a 2011 plan to fix an earlier budget crisis.

President Obama plans to convene a meeting with the top leaders in Congress on Friday at the White House, congressional aides confirmed.
 
The president’s confab with Boehner (R-Ohio), Senate Majority Leader Harry Reid (D-Nev.), McConnell (R-Ky.) and Minority Leader Nancy Pelosi (D-San Francisco) will come on the day the indiscriminate across-the-board budget cuts, known as the sequester, are set to begin slicing $85 billion in federal spending by the end of September.
 
Republicans on Capitol Hill immediately questioned whether the administration was "serious" about stopping the automatic budget cuts or whether the meeting was a "farce."

BLAME SHARED FOR CUTS

"The president's been running around acting like the world's going to end because Congress might actually follow through on an idea he proposed and signed into law - all the while pretending he's somehow powerless to stop it," said McConnell.

Americans blame both Obama and congressional Republicans for the sequestration crisis, according to a Reuters/Ipsos online poll released on Tuesday.

Twenty-five percent of people said Republicans in Congress were responsible for sequestration, 23 percent blamed Obama and 5 percent pointed to congressional Democrats. Thirty percent said all of them were to blame.

With a trip to a defense-heavy region of the country, Obama is seeking to draw attention to how the cuts would play out in communities where the military is a major source of jobs.

Defense spending makes up 9.8 percent of Virginia's gross domestic product.

But sequestration will be brought in gradually, and no shock to the economy is expected on Friday when it starts.

IMMIGRANTS RELEASED

"The impact of this policy won't be felt overnight but it will be real," Obama said. "The longer these cuts are in place the greater the damage."

The planned cuts will be phased in over seven months, giving lawmakers time to halt the worst effects, possibly in budget talks later in March.

But the Obama administration is highlighting a series of cuts to public services which are threatened.

The release of several hundred illegal immigrants due to budget pressures was criticized by the Republican head of the House Judiciary Committee as a political stunt to pressure Congress to put off sequestration.

"It's abhorrent that President Obama is releasing criminals into our communities to promote his political agenda on sequestration," U.S. Representative Bob Goodlatte said in a statement.

Immigration and Customs Enforcement released the immigrants while their deportation cases proceed. ICE spokeswoman Gillian Christensen said serious offenders were still being held.

Sequestration might be stopped as part of negotiations next month over another unrelated fiscal issue: a continuing resolution to fund government operations.

But House Republicans think they are in a strong bargaining position as there is not likely to be public outcry when the cuts start, unlike the "fiscal cliff" crisis at the New Year when the threat of tax hikes for most working Americans kept pressure on lawmakers to reach a deal.

The sequestration cuts apply in equal measure to non-defense spending and defense spending.

The reductions will force the Pentagon to put most of its 800,000 civilian employees on unpaid leave for 22 days, slash ship and aircraft maintenance and curtail training, Defense Department officials have told Congress. Pentagon contracting and acquisitions personnel were authorized last week to consult with their industry counterparts about the upcoming spending cuts.

Federal Reserve Chairman Ben Bernanke, in testimony on Tuesday to the Senate Banking Committee, urged lawmakers to avoid the spending cuts, warning that combined with earlier tax increases it could create a "significant headwind" for the economic recovery.

 
"The threat of these cuts has already forced the Navy to cancel the deployment, or delay the repair of certain aircraft carriers. One that's currently being built might not get finished," he warned.

The $85 billion across-the-board budget cuts are due to begin on Friday, and might eventually force the government to scale back on a host of services such as air traffic control, law enforcement and food safety inspections.

"These cuts are wrong. They are not smart. They're not fair. They are a self-inflicted wound that doesn't have to happen," he told workers in Newport News, Virginia.

In a move criticized by Republicans as a dangerous political stunt, the U.S. Immigration and Customs Enforcement agency released several hundred detained illegal immigrants in order to save money in preparation for the cuts.

An agreement in Congress would halt the cuts, but with days to go before the ax starts to fall, the two parties do not agree on what to replace them with. There have been hardly any budget talks between the parties since New Year.

Republicans seek different, more targeted, spending cuts than entailed in "sequestration," as the automatic cuts are known in Washington budget parlance. They complain that Obama is overplaying worries about sequestration to promote long-held plans to close tax loopholes.

House of Representatives Speaker John Boehner accused Obama of using "our military men and women as a prop in yet another campaign rally to support his tax hikes."

Boehner, under pressure by conservatives not to cave to Obama's demand for higher taxes, said members of the Democratic-controlled Senate need to "get off their ass" and pass legislation that would blunt the impact of the cuts.

In the Senate, Republicans struggled to come up with a unified plan for replacing the cuts, with Senate Republican leader Mitch McConnell saying lawmakers should simply pass a law giving the president flexibility on how the reductions would be carried out. Obama rejected that idea.

In a sign of how far they are from halting sequestration, congressional Republicans and the White House have been trying to blame each other for the cuts, which both Democrats and Republicans agreed to in a 2011 plan to fix an earlier budget crisis.

BLAME SHARED FOR CUTS

"The president's been running around acting like the world's going to end because Congress might actually follow through on an idea he proposed and signed into law - all the while pretending he's somehow powerless to stop it," said McConnell.

Americans blame both Obama and congressional Republicans for the sequestration crisis, according to a Reuters/Ipsos online poll released on Tuesday.

Twenty-five percent of people said Republicans in Congress were responsible for sequestration, 23 percent blamed Obama and 5 percent pointed to congressional Democrats. Thirty percent said all of them were to blame.

With a trip to a defense-heavy region of the country, Obama is seeking to draw attention to how the cuts would play out in communities where the military is a major source of jobs.

Defense spending makes up 9.8 percent of Virginia's gross domestic product.

But sequestration will be brought in gradually, and no shock to the economy is expected on Friday when it starts.

IMMIGRANTS RELEASED

"The impact of this policy won't be felt overnight but it will be real," Obama said. "The longer these cuts are in place the greater the damage."

The planned cuts will be phased in over seven months, giving lawmakers time to halt the worst effects, possibly in budget talks later in March.

But the Obama administration is highlighting a series of cuts to public services which are threatened.

The release of several hundred illegal immigrants due to budget pressures was criticized by the Republican head of the House Judiciary Committee as a political stunt to pressure Congress to put off sequestration.

"It's abhorrent that President Obama is releasing criminals into our communities to promote his political agenda on sequestration," U.S. Representative Bob Goodlatte said in a statement.

Immigration and Customs Enforcement released the immigrants while their deportation cases proceed. ICE spokeswoman Gillian Christensen said serious offenders were still being held.

Sequestration might be stopped as part of negotiations next month over another unrelated fiscal issue: a continuing resolution to fund government operations.

But House Republicans think they are in a strong bargaining position as there is not likely to be public outcry when the cuts start, unlike the "fiscal cliff" crisis at the New Year when the threat of tax hikes for most working Americans kept pressure on lawmakers to reach a deal.

The sequestration cuts apply in equal measure to non-defense spending and defense spending.

The reductions will force the Pentagon to put most of its 800,000 civilian employees on unpaid leave for 22 days, slash ship and aircraft maintenance and curtail training, Defense Department officials have told Congress. Pentagon contracting and acquisitions personnel were authorized last week to consult with their industry counterparts about the upcoming spending cuts.

Federal Reserve Chairman Ben Bernanke, in testimony on Tuesday to the Senate Banking Committee, urged lawmakers to avoid the spending cuts, warning that combined with earlier tax increases it could create a "significant headwind" for the economic recovery.







Read More..

McIlroy, Woods play own version of match play


PALM BEACH GARDENS, Fla. (AP) — Tiger Woods and Rory McIlroy faced off Sunday in match play, just like so many golf fans wanted to see.


Only hardly anyone saw them. And it didn't even count.


After both were eliminated in the first round of the Match Play Championship, No. 1 and No. 2 in the world played two rounds Sunday morning at The Medalist.


"We thought we'd play our own Match Play final," McIlroy said Tuesday at the Honda Classic.


They were done about the time Matt Kuchar was holding on for a 2-and-1 win over Hunter Mahan at Dove Mountain in Arizona. McIlroy didn't give any details of the match, but it's safe to say they weren't wearing the ski caps that Kuchar and Mahan had on during their match.


The opening round for Woods and McIlroy didn't start until Thursday because of a snowstorm. They were gone the next day after losing, and Woods said he was headed home to Florida to get warm.


The Medalist is the home club of Woods. McIlroy said former NFL receiver Ahmad Rashad joined them.


So who won?


McIlroy said Woods won the first round, and McIlroy beat him the second round. That would leave their head-to-head record tied at 2 wins apiece. A year ago, Woods beat McIlroy in the World Golf Finals exhibition in Turkey, and McIlroy beat him in an 18-hole exhibition in China.


One thing they didn't have to worry about was pace of play.


They teed off at 8 a.m. and McIlroy said he was home by 1:30 p.m.


"He putts with the pin in," McIlroy said. "It's speed golf. It was good. It was really enjoyable."


McIlroy is the defending champion at the Honda Classic, where he held on despite a birdie-eagle finish by Woods, who tied for second. McIlroy has played only three rounds that count this year, with the Masters only six weeks away. He and Woods missed the cut in Abu Dhabi, and both lost in the first round of Match Play. The difference is that Woods also played the Farmers Insurance Open, which he won for his record eighth win at Torrey Pines.


Both are to play next week at Doral.


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Benedict: Pope aware of his flaws?




Pope Benedict XVI delivers his last Angelus Blessing to thousands of pilgrims gathered in Saint Peter's Square on February 24.




STORY HIGHLIGHTS


  • Sister Mary Ann Walsh: Pope Benedict acknowledged that he made mistakes

  • Walsh: In firestorm over scholarly quotes about Islam, he went to great lengths to atone

  • Walsh: Similarly, he quickly reversed a decision that had angered Jews and repaired ties

  • Even his stepping down is a nod to his humanity and his love of the church, she says




Editor's note: Sister Mary Ann Walsh is director of media relations for the U.S. Conference of Catholic Bishops and a member of the Sisters of Mercy of the Americas Northeast Regional Community. She is a former foreign correspondent at Catholic News Service (CNS) in Rome and the editor of "John Paul II: A Light for the World," "Benedict XVI: Essays and Reflections on his Papacy," and "From Pope John Paul II to Benedict XVI."


(CNN) -- One of the Bible's paradoxical statements comes from St. Paul's Epistle to the Galatians: "Power is made perfect in infirmity."


The poetic statement proclaims that when we are weak, we are strong. Pope Benedict XVI's stepping down from what many consider one of the most powerful positions in the world proves it. In a position associated with infallibility -- though that refers to formal proclamations on faith and morals -- the pope declares his weakness.



Sister Mary Ann Walsh

Sister Mary Ann Walsh



His acceptance of frailty speaks realistically about humanity: We grow old, weaken, and eventually die. A job, even one guided by the Holy Spirit, as we Roman Catholics believe, can become too much for us.


Acceptance of human frailty has marked this papacy. We all make mistakes, but the pope makes them on a huge stage.


He was barely into his papacy, for example, when he visited Regensburg, Germany, where he once taught theology. Like many a professor, he offered a provocative statement to get the conversation going. To introduce the theme of his lecture, the pope quoted from an account of a dialogue between the Byzantine Emperor Manuel II Paleologus and an unnamed Muslim scholar, sometime near the end of the 14th century -- a quote that was misinterpreted by some as a condemnation of Mohammed and Islam.


Opinion: 'Gay lobby' behind pope's resignation? Not likely


Twice, the pope emphasized that he was quoting someone else's words. Unfortunately, the statement about Islam was taken as insult, not a discussion opener, and sparked rage throughout the Muslim world.


The startled pope had to explain himself. He apologized and traveled two months later to Istanbul's Blue Mosque, where he stood shoeless in prayer beside the Grand Mufti of Istanbul. Later he hosted Muslim leaders at the Vatican at the start of a Catholic-Muslim forum for dialogue. It was a human moment -- a mistake, an apology and atonement -- all round.










A similar controversy erupted when he tried to bring the schismatic Society of St. Pius X back into the Roman Catholic fold.


In a grand gesture toward reconciliation, he lifted the excommunication of four of its bishops, unaware that one, Richard Williamson, was a Holocaust denier. This outraged many Jews. Subsequently the Vatican said the bishop had not been vetted, and in a bow to modernity said officials at least should have looked him up on the Internet.


In humble response, Benedict reiterated his condemnation of anti-Semitism and told Williamson that he must recant his Holocaust views to be fully reinstated. Again, his admission of a mistake and an effort to mend fences.


News: Scandal threatens to overshadow pope's final days


Pope Benedict XVI came from a Catholic Bavarian town. Childhood family jaunts included trips to the shrine of the Black Madonna, Our Lady of Altotting. He entered the seminary at the age of 13. He became a priest, scholar and theologian. He lived his life in service to the church. Even in resigning from the papacy, he embraces the monastic life to pray for a church he has ever loved.


With hindsight, his visit to the tomb of 13th century Pope Celestine V, a Benedictine monk who resigned from the papacy eight centuries before, becomes poignant.


In 2009, on a visit to Aquila, Italy, Benedict left at Celestine's tomb the pallium, a stole-like vestment that signifies episcopal authority, that Benedict had worn for his installation as pope. The gesture takes on more meaning as the monkish Benedict steps down.


We expect the pope to be perfect. Catholics hold him to be the vicar of Christ on earth. He stands as a spiritual leader for much of the world. Statesmen visit him from around the globe. He lives among splendid architecture, in the shadow of the domed St. Peter's Basilica. All testify to an almost surreal omnipotence.


Complete coverage of the pope's resignation


In this world, however, walked a vulnerable, human person. And in a paradox of life, his most human moment -- giving up the power of office -- may prove to be his most potent, delivering a message that, as St. Paul noted many centuries ago, "Power is made perfect in infirmity."


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The opinions expressed in this commentary are solely those of Mary Ann Walsh.






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Chicago pelted by snow, sleet

Chicago's midday full weather forecast. (WGN - Chicago)









A winter weather advisory is in effect until tonight sleet, freezing rain and snow hits the Chicago area, making travel hazardous and grounding hundreds of flights.


The National Weather Service expects the heaviest snow to fall this afternoon. Winds gusting at 35 to 40 mph will reduce visibility and glaze roads, the weather service warned in the advisory.


"Snowfall rates in excess of an inch per hour could occur at times," it said. "This will likely be a heavy wet snow sometimes referred to as heart attack snow."








Mike Bardou, a weather service meteorologist, said "the early part of the rush hour will be most affected."


The northern part of the city and the northwest suburbs could see 2 to 3 inches of snow by the evening rush hour, Bardou said. Chicago's South Side and southwest suburbs like Oak Lawn, Tinley Park and Joliet might only get 1 to 2 inches of snow, and the far south suburbs could see less than an inch.


Snow will continue to fall, at a lighter intensity, through the evening until early Wednesday morning and temperatures are expected to hover around freezing. When it's over, we could see anywhere from 3 to 6 inches throughout the area.


As of about 2 p.m., there were 4 inches in northwest suburban South Elgin and Schaumburg, 3.3 inches in west suburban Winfield, 2.5 inches in north suburban Lake Bluff, 1.8 inches in north suburban Morton Grove, and 1.5 inches at Midway International Airport.


Nearly 500 flights had been canceled at O'Hare and 183 at Midway, according to FlightStats, which gathers data from airports and airlines. There were 469 delays at O'Hare and 106 at Midway.


On the roads, spinouts have been reported on interstates 90, 94 and 55, according to the Illinois State Police.


The Illinois State Police Chicago District has instituted its emergency snow plan. In an accident where there are no injuries and the cars are driveable, the drivers should exchange information at a safe place and file accident reports with the state police at a later date.


Chicago's Streets and Sanitation Department has deployed its entire fleet of 284 plows. Drivers will plow the main roads, such as Lake Shore Drive, through the evening rush hour. As the snow begins to taper off, the plows will clear residential roads, said department spokeswoman Anne Sheahan.


Extra plows are being deployed to the 2nd congressional district to help residents get to their polling places for today's primary election, Sheahan said.


Road conditions were treacherous throughout the southwest suburbs, especially along Interstates 55 and 80 in Will County, police and fire officials said.


Several vehicles have slipped into ditches along I-55 near Plainfield, especially near U.S. Route 30, said Jon Stratton, a deputy chief with the Plainfield Fire Protection District.  "On I-55, there are vehicles everywhere in the ditch," Stratton said. "Visibility is going down and roads are getting all snow covered, so it's going to be an interesting day."


The most serious accident in the area so far today occurred when an SUV slid under a semi's trailer on the Route 30 overpass over I-55, Stratton said.


Firefighters extricated the woman who was driving the SUV, and she was taken by ambulance to Provena Saint Joseph Medical Center in Joliet, Stratton said. The woman was conscious and stable when removed from the SUV, he said.


Plainfield police have responded to several reports of crashes and vehicles that have slid into ditches, Sgt. Mike Fisher said. "It is getting slick out there, so people should give themselves extra time, slow down and drive safe," Fisher said.


Schools in the southwest suburbs have also begun changing their schedules because of the storm.


High school students in Plainfield Community Consolidated School District 202 will be dismissed 20 minutes early today, at 1:50 p.m., to give bus drivers more time to complete their routes, according to a news release from the district.


Middle school students will be dismissed as soon as buses arrive at those schools after completing their high school routes. Elementary school students will be dismissed as close to their usual time as possible, according to the district.





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