French, Malian forces fight Islamist rebels in Gao

GAO, Mali (Reuters) - French and Malian troops fought Islamists on the streets of Gao and a car bomb exploded in Kidal on Thursday, as fighting showed little sign of abating weeks before France plans to start withdrawing some forces.

Reuters reporters in Gao in the country's desert north said French and Malian forces fired at the mayor's office with heavy machineguns after Islamists were reported to have infiltrated the Niger River town during a night of explosions and gunfire.

French Defense Minister Jean-Yves Le Drian told a news conference in Brussels that Gao was back under control after clashes earlier in the day.

"Malian troops supported by French soldiers killed five jihadists and the situation is back to normal," he said.

In Kidal, a remote far north town where the French are hunting Islamists, residents said a car bomb killed two. A French defense ministry source reported no French casualties.

French troops dispatched to root out rebels with links to al Qaeda swiftly retook northern towns last month. But they now risk being bogged down in a guerrilla conflict as they try to help Mali's weak army counter bombings and raids.

"There was an infiltration by Islamists overnight and there is shooting all over the place," Sadou Harouna Diallo, Gao's mayor, told Reuters by telephone earlier in the day, saying he was not in his office at the time.

Gao is a French hub for operations in the Kidal region, about 300 km (190 miles) northeast, where many Islamist leaders are thought to have retreated and foreign hostages may be held.

"They are black and two were disguised as women," a Malian soldier in Gao who gave his name only as Sergeant Assak told Reuters during a pause in heavy gunfire around Independence Square.

Six Malian military pickups were deployed in the square and opened fire on the mayor's office with the heavy machineguns. Two injured soldiers were taken away in an ambulance.

French troops in armored vehicles later joined the battle as it spilled out into the warren of sandy streets, where, two weeks ago, they also fought for hours against Islamists who had infiltrated the town via the nearby river.

Helicopters clattered over the mayor's office, while a nearby local government office and petrol station was on fire.

A Gao resident said he heard an explosion and then saw a Malian military vehicle on fire in a nearby street.

Paris has said it plans to start withdrawing some of its 4,000 troops from Mali next month. But rebels have fought back against Mali's weak and divided army, and African forces due to take over the French role are not yet in place.

Islamists abandoned the main towns they held but French and Malian forces have said there are pockets of Islamist resistance across the north, which is about the size of France.

CAR BOMB

Residents reported a bomb in the east of Kidal on Thursday.

"It was a car bomb that exploded in a garage," said one resident who went to the scene but asked not to be named.

"The driver and another man were killed. Two other people were injured," he added.

A French defense ministry official confirmed there had been a car bomb but said it did not appear that French troops, based at the town's airport, had been targeted.

Earlier this week, a French soldier was killed in heavy fighting north of Kidal, where French and Chadian troops are hunting Islamists in the Adrar des Ifoghas mountains, which border Algeria.

Operations there are further complicated by the presence of separatist Tuareg rebels, whose rebellion triggered the fighting in northern Mali last year but were sidelined by the better-armed Islamists.

Having dispatched its forces to prevent an Islamist advance south in January, Paris is eager not to become bogged down in a long-term conflict in Mali. But their Malian and African allies have urged French troops not to pull out too soon.

(Additional reporting by Emanuel Braun in Gao, Adama Diarra in Bamako, David Lewis and John Irish in Dakar and Adrian Croft in Brussels; Writing by David Lewis; Editing by Jason Webb and Roger Atwood)

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Homebuilding takes a breather; wholesale prices up

WASHINGTON (Reuters) - U.S. builders broke ground on fewer homes last month but a jump in permits for future construction to a 4-1/2-year high indicated the housing market recovery remains on track.

Another report on Wednesday showed wholesale prices rose in January for the first time in four months. However, the gain was smaller than expected and left scope for the Federal Reserve to keep buying bonds to stimulate the economy.

Housing starts dropped 8.5 percent in January to an 890,000-unit annual rate, pulled down by a sharp drop in the volatile multi-family unit category, the Commerce Department said.

Starts for single-family homes hit their highest level since July 2008, and permits for future construction, which lead starts by at least a month, were at their highest level since June 2008.

The drop in starts followed an outsized gain in December and was confined to the Northeast and Midwest, suggesting winter weather likely contributed to the pullback.

"The fundamentals are there and the drivers are looking good," said Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts. "We see more new construction this year. The only question is whether it will be in the multi-family or single-family segment."

Housing has shifted from being a headwind for the economy to being a pillar of support, although mortgage rates have crept higher in recent weeks, cooling loan demand.

Luxury homebuilder Toll Brothers on Wednesday reported disappointing quarterly results, hurt in part by lower selling prices, but other homebuilders have been able to take advantage of the recovering market.

A separate report from the Labor Department showed producer prices rose 0.2 percent last month as rebounding food costs offset declining gasoline prices. Wholesale prices had slipped 0.3 percent in December, and economists had expected them to rise 0.4 percent in January.

Food prices accounted for more than 75 percent of the rise in wholesale prices last month.

INFLATION PRESSURES MUTED

Away from the spike in food prices, the producer price report showed inflation pressures were generally muted.

In the 12 months through January, wholesale prices were up 1.4 percent and data on Thursday is expected to show consumer inflation below the U.S. central bank's goal of 2 percent.

"Inflationary pressures remain well contained," said Diane Swonk, chief economist at Mesirow Financial in Chicago. "The Federal Reserve would rather see inflation slightly higher in response to stronger economic conditions than benign because the recovery remains tepid."

In an effort to drive down borrowing costs and spur stronger growth, the Fed last year launched an open-ended bond buying program and said it would keep it up until it saw a substantial improvement in the outlook for the labor market.

But minutes of the U.S. central bank's January 29-30 meeting showed a number of policymakers believed the Fed might have to slow or stop asset purchases before seeing an acceleration in job growth because of concerns over the costs.

U.S. stocks fell on the minutes, with the Standard & Poor's 500 index posting its biggest one day percentage decline since mid-November.

The dollar rose against a basket of currencies. Prices for U.S. Treasury debt ended higher.

Wholesale prices excluding volatile food and energy costs edged up 0.2 percent last month after gaining 0.1 percent in December. In the 12 months through January, those so-called core prices rose 1.8 percent, the smallest gain since February 2011.

A surge in the cost of fresh and dried vegetables pushed up food prices in January. Gasoline prices surprisingly recorded another substantial decline last month, even though prices at the pump have been rising almost every week this year.

The core PPI was lifted by a jump in the cost of drugs, while passenger car and light truck prices fell.

(Additional reporting by Jason Lange; Editing by Andrea Ricci, Tim Ahmann and Leslie Adler)

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Police offer confused testimony in Pistorius case

PRETORIA, South Africa (AP) — The detective leading the police investigation into Oscar Pistorius' fatal shooting of his girlfriend offered confusing testimony Wednesday, at one point agreeing with the athlete's defense that officers had no evidence challenging the runner's claim he accidentally killed her.

Testimony by Detective Warrant Officer Hilton Botha of the South African Police Service left prosecutors rubbing their temples, only able to look down at their notes as he misjudged distances and acknowledged a forensics team left in the toilet bowl one of the bullet slugs fired at Reeva Steenkamp. However, Botha still poked holes in Pistorius' own account that he feared for his life and opened fire on Valentine's Day after mistaking Steenkamp for an intruder.

The second day of the bail hearing in a case that has riveted South Africa and much of the world appeared at first to go against the double-amputee runner, with prosecutors saying a witness can testify to hearing "non-stop talking, like shouting" between 2 a.m. and 3 a.m. before the predawn shooting on Feb. 14. However, Botha later said under cross examination that the person who overheard the argument was in a house 600 meters (yards) away in Pistorius' gated community in the suburbs of South Africa's capital, Pretoria.

Later, prosecutor Gerrie Nel questioned Botha again and the detective acknowledged the distance was much closer. But confusion reigned for much of his testimony, when at one point Botha said officers found syringes and steroids in Pistorius' bedroom. Nel quickly cut the officer off and said the drugs were actually testosterone.

Pistorius' lead defense lawyer, Barry Roux, asserted when questioning the detective — who has 16 years' experience as a detective and 24 years with the police — that it was not a banned substance and that police were trying to give the discovery a "negative connotation."

"It is an herbal remedy," Roux said. "It is not a steroid and it is not a banned substance."

The name of the drug, offered later in court by Roux, could not be immediately found in reference materials by The Associated Press. A spokesman for prosecutors later said it's too early to know what the substance is, as they don't yet have results of forensic testing on the material.

Pistorius, 26, said in an affidavit read in court Tuesday that he and his 29-year-old girlfriend had gone to bed and that when he awoke during the night he detected what he thought was an intruder in the bathroom. He testified that he grabbed his 9 mm pistol and fired into the door of a toilet enclosed in the bathroom, only to discover later to his horror that Steenkamp was there, mortally wounded.

Pistorius, the first Paralympian runner to compete at the Olympics, is charged with premeditated murder in the case.

The prosecution attempted to cement its argument that the couple had a shouting match, that Steenkamp fled and locked herself into the toilet stall of the bathroom and that Pistorius fired four shots through the door, hitting her with three bullets.

Botha said: "I believe that he knew that Reeva was in the bathroom and he shot four shots through the door."

But asked if the police found anything inconsistent with the version of events presented by Pistorius, Botha responded that they had not. He later said nothing contradicted the police's version either.

Nel projected a plan of the bedroom and bathroom in the courtroom and argued that Pistorius had to walk past his bed to get to the bathroom and could not have done so without realizing that Steenkamp was not in the bed.

"There's no other way of getting there," Nel said.

Botha said the trajectory of the bullets showed the gun was fired pointed down and from a height. This seems to conflict with Pistorius' statement Tuesday, because the athlete said that he did not have on his prosthetics and on his stumps and feeling vulnerable because he was in a low position when he opened fired.

Officers also found .38-caliber pistol rounds in a safe, which Botha said Pistorius owned illegally and for which he said the athlete would be charged with a crime. However, Botha also acknowledged investigators didn't take photographs of the ammunition and let Pistorius' supporters at the crime scene take them away.

Botha said the holster for the 9 mm pistol was found under the left side of the bed, the side on which Steenkamp slept. He also implied it would have been impossible for Pistorius to get the gun without checking to see if Steenkamp was there. Roux later argued that Pistorius had suffered an injury to his right shoulder and wore a "medical patch" the night of the killing which forced him to sleep on the left side of the bed.

Steenkamp was shot in the head over her right ear and in her right elbow and hip, breaking her arm and hip, Botha said. However, Roux later asked Botha if Steenkamp's body showed "any pattern of defensive wounds." The detective said no.

Botha also said the shots were fired from 1.5 meters (five feet), and that police found three spent cartridges in the bathroom and one in the hallway connecting the bathroom to the bedroom. However, later on cross-examination by the defense, Botha said he wasn't a forensics expert and couldn't answer some questions.

Police also found two iPhones in the bathroom and two BlackBerrys in the bedroom, Botha said, adding that none had been used to phone for help. Roux later suggested that a fifth phone, not collected by the police, was used by Pistorius to make calls for a hospital and help. After the hearing, Roux told journalists that Pistorius' defense team had the phone, but did not elaborate.

Guards at the gated community where Pistorius lives did call the athlete, Botha said. The detective said that all the athlete said was: "I'm all right."

He didn't hang up, Botha said, and the guards heard him uncontrollably weep.

"Was it part of his premeditated plan, not to switch off the phone and cry?" Roux asked sarcastically.

___

Gerald Imray reported from Johannesburg. Associated Press writer Michelle Faul in Johannesburg contributed to this report.

___

Jon Gambrell can be reached at www.twitter.com/jongambrellAP. Gerald Imray can be reached at www.twitter.com/geraldimrayAP.

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What legacy for Hillary on gay rights?

STORY HIGHLIGHTS

• Frida Ghitis: As secretary of state, Clinton made equality for gays a foreign policy value


• She says treatment of LGBT citizens is a microcosm of a nation's human rights approach


• She says Clinton used U.S. sway to advance LGBT rights as global standard


• Ghitis: Clinton gave a boost to human rights for all and nudge to process of freedom

Editor's note: Frida Ghitis is a world affairs columnist for The Miami Herald and World Politics Review. A former CNN producer and correspondent, she is the author of "The End of Revolution: A Changing World in the Age of Live Television." Follow her on Twitter: @FridaGColumns

(CNN) -- As Hillary Clinton makes a whirlwind round of appearances in her last days as secretary of state, one groundbreaking aspect of her work deserves a moment in the spotlight: In a bold departure with tradition, Clinton made the promotion of equality for gay people a core value of U.S. foreign policy.

That is a transformative change, one that advances the cause of human rights around the world -- not just for gays and lesbians, but for everyone.

Frida Ghitis

The way governments treat their LGBT (lesbian, gay, bisexual and transgender) citizens can tell us much about their overall approach to human rights and democracy. Mistreatment of sexual minorities is a microcosm of greater repression.

Take a look at the gruesome spectacle of young gay men executed by the government of Iran in the streets, for all to see. Or, look at the new anti-gay laws coming into effect in Russia's increasingly authoritarian regime. It is no accident that the growing repression of LGBT Russians coincides with a dramatic deterioration of political freedom and what the nonpartisan Freedom House called "the return of the iron fist in Russia."

It is clear that gays and lesbians are the canaries in the coal mine of human rights. When gays live under pressure, everyone should worry.

That, however, is not how Clinton explained it 14 months ago, when she stood before the Human Rights Council in Geneva, in front of an audience filled with representatives from Arab and African countries, from places where homosexuality is a crime, even one punishable by death, and declared that gay rights and human rights "are one and the same." Gay people, she explained, deserve equality simply because everyone does.

It was Human Rights Day, the commemoration of the signing of the 1948 U.N. Declaration of Human Rights, and she used the occasion to send a message to the world on behalf of the United States. She declared unequivocally that there is no exception for gay people when it comes to human rights.

Opinion: President Hillary Clinton? If she wants it

She admitted that the U.S. record on human rights for gays and lesbians "is far from perfect." But by proclaiming, without caveat or qualification, the American stance on the issue, she sent a signal to the rest of the world that, while equality for gay people is far from reached, the rightness of the goal is beyond debate, much like it is with equal rights for women or for racial minorities.

In doing this, she announced it was now the official policy of the U.S. government to promote the rights of LGBT people everywhere. Clinton has always been a couple of steps ahead of President Barack Obama when it comes to gay rights. It's a safe bet she persuaded him to jump on board and put the full force of the administration behind this new policy.

In Geneva that day, she announced that the president had instructed all U.S. government agencies working in other countries to "combat the criminalization of LGBT status and conduct" to help protect vulnerable LGBT, helping refugees and asylum seekers and responding to abuses.

Today, American diplomats, as part of their official mandate and as an explicit tenet of U.S. values, must speak up for the rights of individuals experiencing persecution on the basis of their sexual orientation, as when a couple were sentenced in Cameroon for "looking" gay.

News: Hillary Clinton talks future 'adventures'

America may be not as influential as it once was, but no country carries more weight; there's not even a close second. America's opinion matters if you want foreign aid or political assistance.

But it matters even more to people on the ground, eager, perhaps desperate to make their case before the authorities, their boss or their family. In the latter case, that it was the popular and respected Hillary Clinton making the argument undoubtedly made a difference on a personal level, even if dictators did not relent.

Clinton also noted that "being gay is not a Western invention; it is a human reality," and noted nations that have enacted protections for their gay citizens, including South Africa, Colombia and Argentina.

It was a rebuke to that tragicomic moment in 2007, when Iranian President Mahmoud Ahmadinejad told an audience in New York, "In Iran, we do not have homosexuals like you do in your country," prompting an explosion of laughter from the crowd. Of course, gay people live in Iran, where homosexuality is punishable by death.

America's stance, promoted so passionately by Clinton, is gradually becoming the global standard for human rights.

Under intense lobbying from America, the usually feckless and frequently counterproductive U.N. Human Rights Council adopted a measured entitled "Ending Violence Based on Sexual Orientation and Gender Identity," and another supporting equality, important symbols that this is a standard for the entire world.

Clinton moved the issue of equality for members of the LGBT community to the front of America's diplomatic agenda; in the process, she gave a boost to human rights for all and a considerable nudge to the inexorable progress of freedom. Let's hope her successor doesn't let up.

Follow us on Twitter @CNNOpinion.

Join us on Facebook/CNNOpinion.

The opinions expressed in this commentary are solely those of Frida Ghitis.

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Drew Peterson: Ex-attorney Brodsky meets with Stacy's sister

During a courtroom break this afternoon, Drew Peterson’s former lead attorney Joel Brodsky chatted in the hallway with the sister of Peterson’s missing fourth wife, Stacy.

Stacy’s sister Cassandra Cales wouldn’t discuss the content of the roughly five-minute conversation, but Brodsky said, "We were just discussing how to make sure that her sister Stacy isn't forgotten after Drew goes away."

Peterson is the sole suspect in Stacy’s 2007 disappearance, but he has not been charged. Prosecutors have said they believe Peterson killed Stacy and plan to review the case and whether to bring charges.

Attorneys continued to argue this afternoon about whether Peterson should get a new trial after his murder conviction last fall in the drowning of his third wife, Kathleen Savio.

If the judge does not grant a new trial, sentencing would come next for Peterson. Attorneys indicated that the sentencing hearing, if it happens, likely would be Thursday. Peterson, 59, faces 20-60 years in prison.
 
In arguing for a new trial, the defense said hearsay evidence and certain witnesses should never have been allowed at trial. Attorneys then turned to their argument that Brodsky's decision to call divorce attorney Harry Smith to testify scuttled Peterson's chance at a fair trial.
 
Smith testified at the murder trial last year that he had a phone conversation with  Stacy about whether she could use knowledge about Savio’s death in a potential divorce proceeding against Peterson. Some jurors have said Smith’s testimony convinced them Peterson was guilty.

"It was an awful decision,” defense attorney Steve Greenberg said in court. “It ruined the case -- we brought out the worst possible evidence, and the best evidence for the state."

Greenberg said Judge Edward Burmila has the opportunity to undo the problems caused by Brodsky's insistence on calling Smith to the stand.

“We have to give the courts a chance to correct errors that were made during a trial, and that’s what we’re doing here today," Greenberg told Burmila. "Ultimately, if you boil it down, Harry Smith's testimony was probably the most incriminating piece of evidence against Mr. Peterson, and it was brought out by the defense. There could be no reasonable trial strategy."

"Whatever kernel of impeachment Mr. Brodsky thought he was going to get out of it paled in comparison to the mountain of damage that it brought out," Greenberg said. "It was awful strategy,  and that strategy alone means Mr. Peterson should get a new trial from this court.”

Burmila asked if Peterson didn't bear some responsibility for listening to Brodsky over the objections of his other attorneys.

But Greenberg said a client doesn't get a say in trial strategy, and said that while Brodsky was wise to bring in experienced criminal attorneys, he never listened to them.

“It was a dictatorship," Greenberg said.

In the overflow room across the hall where media members and other court observers were listening to the proceedings in the courtroom, Brodsky groaned at every accusation.

"I'm a dictator," he said, shaking his head. "Unbelievable."

Earlier this afternoon, Peterson’s attorneys asked Burmila to throw out the jury’s guilty verdict and acquit their client of murder.

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French general urges EU to equip "impoverished" Mali army

BAMAKO, Mali (Reuters) - The European Union should complement a mission to train Mali's army, routed by rebels last year, by providing equipment from uniforms to vehicles and communications technology, a French general said on Wednesday.

General Francois Lecointre, appointed to head the EU training mission to Mali (EUTM) that was formally launched this week, said in Bamako equipping the "very impoverished" and disorganized Malian army was as important as training it.

Europe, along with the United States, has backed the French-led military intervention in Mali which since January 11 has driven al Qaeda-allied Islamist insurgents out of the main northern towns into remote mountains near Algeria's border.

European governments have ruled out sending combat troops to join French and African soldiers pursuing the Islamist rebels.

But the EU is providing a 500-strong multinational training force that will give military instruction to Malian soldiers for an initial period of 15 months at an estimated cost of 12.3 million euros ($16.45 million).

While hailing what he called the EU's "courageous, novel, historic" decision to support Mali, Lecointre told a news conference the Malian army's lack of equipment was a problem.

"I know the Malian state is poor, but the Malian army is more than poor," the French general told a news conference, adding that it urgently needed everything from uniforms and weapons to vehicles and communications equipment.

Last year, when Tuareg separatist forces swelled by weapons and fighters from the Libyan conflict swept out of the northern deserts, a demoralized and poorly-led Malian army collapsed and fled before them, abandoning arms and vehicles.

Mali's military was further shaken by a March 22 coup by junior officers who toppled President Amadou Toumani Toure, sowing division among rival army factions. Islamist radicals allied to al Qaeda later hijacked the victorious Tuareg rebellion to occupy the northern half of the country.

In a fast-charging military campaign led by Paris, French and African troops have driven the jihadists out of principal northern towns like Gao and Timbuktu, and are fighting the rebels in the Adrar des Ifoghas mountains.

HUMAN RIGHTS INSTRUCTION

Flanked by Mali's armed forces chief, General Ibrahima Dembele, Lecointre said he was disappointed that a meeting of international donors last month pledged funds for an African military force, known as AFISMA, being deployed in Mali, but included "very few" contributions for the Malian army itself.

"The European Union needs to invest today in the equipping of the Malian army and not just in its training," the general said, adding he would make this point strongly in a report to EU member state representatives early next month.

Asked how much re-equipping the army would cost, he said it would be "much more" than the 12 million euros of EU financing for the training mission, but could not give a precise estimate.

Starting early in April, the EU mission will start instructing Malian soldiers with a plan to train four new battalions of 600-700 members each, formed from existing enlisted men and new recruits.

Lecointre said the EU training would include instruction in human rights. Demands for this increased after allegations by Malian civilians and international human rights groups that Malian soldiers were executing Tuaregs and Arabs accused of collaborating with Islamist rebels.

The European training contingent is drawn from a range of European countries, but the main contributors would be France, Germany, Italy, Spain and Britain, EUTM officers said.

Mali's army has received foreign training before - several battalions that fled before the rebels last year were trained by the U.S. military and the leader of the March 22 coup, Captain Amadou Sanogo, attended training courses in the United States.

Dembele said U.S. training failed to forge cohesion among Malian units and he hoped the EU training would achieve this.

The United States, which halted direct support for the Malian military after last year's coup, could eventually resume aid if planned national elections in July fully restore democracy to the West African country.

Washington is providing airlift, refuelling and intelligence support to the French-led military intervention in Mali. ($1 = 0.7479 euros)

(Reporting by Pascal Fletcher; Editing by Jason Webb)

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M&A deals lift Wall Street shares nearer a record high

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

Office Depot Inc surged 9.4 percent to $5.02 after a person familiar with the matter said the No. 2 U.S. office supply retailer was in advanced talks to merge with smaller rival OfficeMax Inc , which jumped more than 20 percent.

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

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

The Dow industrials closed 0.9 percent away from their record high while S&P 500 was 2.2 percent off its peak.

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

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

The Dow Jones industrial average <.dji> gained 53.91 points, or 0.39 percent, to 14,035.67. The Standard & Poor's 500 Index <.spx> gained 11.15 points, or 0.73 percent, to 1,530.94. The Nasdaq Composite Index <.ixic> gained 21.56 points, or 0.68 percent, to 3,213.59.

Other stocks in the office supplies sector also rose. Larger rival Staples Inc shot up 13.1 percent to $14.65 as the best performer on the S&P 500.

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

On the downside, health insurance stocks tumbled, led by a 6.4 percent drop in Humana Inc to $73.01. The company said the government's proposed 2014 payment rates for Medicare Advantage participants were lower than expected and would hurt its profit outlook.

UnitedHealth Group lost 1.2 percent to $56.66. The Morgan Stanley healthcare payor index <.hmo> dropped 1.2 percent.

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

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

Some investors say the debate could be the catalyst for a long anticipated sell-off after the market's recent strong run.

Carter Worth, a technical analyst at Oppenheimer, pointed to the "especially complacent action of the past six weeks," noting that, as of Friday, stocks have gone 33 sessions without a dip of more than 1.5 percent.

"We would be selling aggressively into the market's current strength," he said in a research note.

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

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

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

Express Scripts rose 2.5 percent to $56.98 after the pharmacy benefits manager posted fourth-quarter earnings.

About two stocks rose for everyone that fell on the New York Stock Exchange and Nasdaq. About 6.48 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, in line with the daily average so far this year.

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

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Pistorius: Lover caught in tragedy or killer?

PRETORIA, South Africa (AP) — Oscar Pistorius portrayed himself as a lover caught in tragedy, wielding a pistol and frightened as he stood only on his stumps, then killed his girlfriend after mistaking her for an intruder on Valentine's Day.

Prosecutors, however, said the double-amputee Olympian committed premeditated murder, planning the slaying, then firing at Reeva Steenkamp as she cowered behind his locked bathroom door with no hope of escape.

"She couldn't go anywhere," Prosecutor Gerrie Nel told a packed courtroom Tuesday. "It must have been horrific."

Weeping uncontrollably, Pistorius listened as his words were read out in court by his attorney during the opening of a two-day bail hearing, his first public account of the events surrounding the shooting death of Steenkamp, a 29-year-old model and reality TV star who had spoken out against violence against women.

"I fail to understand how I could be charged with murder, let alone premeditated murder, as I had no intention to kill my girlfriend, Reeva Steenkamp," Pistorius said in the sworn affidavit. "I deny the aforesaid allegation in the strongest terms."

It was the first time that the prosecution and Pistorius provided details of their radically divergent accounts of the killing, which has shocked South Africans and fans worldwide, who idolized the 26-year-old track star known as the Blade Runner for overcoming his disability to compete in last summer's London Olympics.

Nel said Pistorius committed premeditated murder when he rose from his bed after a fight with Steenkamp, pulled on his prosthetic legs and walked about 20 feet from his bedroom to the locked toilet door and pumped it with four bullets, three of which hit the model.

That contradicted the runner's statement, read aloud by defense attorney Barry Roux, who described how the couple spent a quiet night together in the athlete's upscale home in a gated community in the capital of Pretoria, then went to sleep around 10 p.m.

Sometime before dawn, Pistorius said he awoke, and walking only on his stumps, pulled a fan in from an open balcony and closed it. That's when he said he heard a noise and became alarmed because the bathroom window, which had no security bars, was open and workers had left ladders nearby.

"It filled me with horror and fear," Pistorius said in the statement.

"I am acutely aware of violent crime being committed by intruders entering homes," he said. "I have received death threats before. I have also been a victim of violence and of burglaries before. For that reason I kept my firearm, a 9 mm Parabellum, underneath my bed when I went to bed at night."

Too frightened to turn on a light, Pistorius said, he pulled out his pistol and headed for the bathroom, believing Steenkamp was still asleep "in the pitch dark" of the bedroom.

"As I did not have my prosthetic legs on and felt extremely vulnerable, I knew I had to protect Reeva and myself," he said, adding that he shouted to Steenkamp to call the police as he fired at the closed toilet door.

It was then, Pistorius said, that he realized Steenkamp was not in bed.

He said he pulled on his prosthetic legs and tried to kick down the toilet door before finally giving up and bashing it in with a cricket bat. Inside, he said he found Steenkamp, slumped over but still alive. He said he lifted her bloodied body and carried her downstairs to seek medical help.

But it was too late. "She died in my arms," Pistorius said.

"We were deeply in love and I could not be happier," the athlete said. "I know she felt the same way. She had given me a present for Valentine's Day but asked me only to open it the next day."

Pistorius broke down in sobs repeatedly as his account was read, prompting Chief Magistrate Desmond Nair to call a recess at one point.

"Maintain your composure," the magistrate said. "You need to apply your mind here."

"Yes, my lordship," Pistorius replied, his voice quivering.

Nair adjourned the case until Wednesday without ruling on whether Pistorius would be granted bail. However, he said the gravity of the charge — which carries a mandatory life sentence — meant the athlete's lawyers must offer "exceptional" reasons for bail to be granted, making his release unlikely.

Roux, the defense attorney, said there was no evidence to substantiate a murder charge. "We submit it is not even murder. There is no concession this is a murder," he said.

The prosecutor disagreed.

"It is our respectful argument that 'pre-planning' or premeditation do not require months of planning," Nel said. "If ... I ready myself and walk a distance with the intention to kill someone, it is premeditated."

Hundreds of miles from the Magistrate's Court, a memorial service was held for Steenkamp in the south coast city of Port Elizabeth. Six pallbearers carried her coffin, draped with a white cloth and covered in white flowers, into the church for the private service and cremation.

Relatives recalled how the model with a law degree had campaigned against domestic violence and had planned to don black for a "Black Friday" protest in honor of a 17-year-old girl who was recently gang-raped and mutilated.

What "she stood for, and the abuse against women, unfortunately it's gone right around, and I think the Lord knows that statement is more powerful now," said her uncle, Mike Steenkamp.

South Africa has some of the world's worst rates of violence against women and the highest rate in the world of women killed by an intimate partner, according to a study by the Medical Research Council, which said at least three women are killed by a partner every day in the country of 50 million.

Since the shooting, several of Pistorius' sponsors have dropped him. On Tuesday, Clarins Group, which owns Thierry Mugler Perfumes, said it would withdraw all advertising featuring the Olympian. A cologne line with the company, called A(asterisk)Men, bears his image.

___

Associated Press writer Michelle Faul in Johannesburg and AP photographer Schalk van Zuydam in Port Elizabeth, South Africa, contributed to this report.

___

Jon Gambrell can be reached at www.twitter.com/jongambrellAP. Gerald Imray can be reached at www.twitter.com/geraldimrayAP.

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How can U.S. deal with cyber war?

Michael Hayden says lack of domestic agreement is driving U.S. to take the offense on cyber attacks.

STORY HIGHLIGHTS

• Obama administration beefing up effort to counter cyberattacks


• Michael Hayden says emphasis is on striking first, as the U.S. does with drone attacks


• Ex-CIA director says drone policy reflects lack of consensus on handling prisoners


• Hayden: Is killing terrorists preferred because of division over how to try them?

Editor's note: Gen. Michael V. Hayden, who was appointed by President George W. Bush as CIA director in 2006 and served until February 2009, is a principal with the Chertoff Group, a security consulting firm. He serves on the boards of several defense firms and is a distinguished visiting professor at George Mason University.

(CNN) -- Human decisions have complex roots: history, circumstance, personality, even chance.

So it's a dangerous game to oversimplify reality, isolate causation and attribute any particular course of action to one or another singular motive.

But let me tempt fate, since some recent government decisions suggest important issues for public discussion.

Michael Hayden

Over the past several weeks, press accounts have outlined a series of Obama administration moves dealing with the cyberdefense of the United States.

According to one report, the Department of Defense will add some 4,000 personnel to U.S. Cyber Command, on top of a current base of fewer than a thousand. The command will also pick up a "national defense" mission to protect critical infrastructure by disabling would-be aggressors.

A second report reveals another administration decision, very reminiscent of the Bush Doctrine of preemption, to strike first when there is imminent danger of serious cyberattack against the United States.

Both of these represent dramatic and largely welcome moves.

But they also suggest the failure of a deeper national policy process and, more importantly, the failure to develop national consensus on some very difficult issues.

Chinese military leading cyber attacks

Let me reason by analogy, and in this case the analogy is the program of targeted killings supported and indeed expanded by the Obama administration. Again, I have no legal or moral objections to killing those who threaten us. We are, as the administration rightly holds, in a global state of war with al Qaeda and its affiliates.

But at the level of policy, killing terrorists rather than capturing them seems to be the default option, and part of that dynamic is fairly attributable to our inability to decide where to put a detainee once we have decided to detain him.

Congress won't let him into the United States unless he is going before a criminal court, and the administration will not send him to Guantanamo despite the legitimate claim that a nation at war has the right to detain enemy combatants without trial.

Failing to come to agreement on the implications of the "we are at war" position, we have made it so legally difficult and so politically dangerous to detain anyone that we seem to default to killing those who would do us harm.

Clearly, it's an easier path: no debates over the location or conditions of confinement. Frequently such action can be kept covert. Decision-making is confined to one branch of government. Congress is "notified." Courts are not involved.

Besides, we are powerful. We have technology at our fingertips. We know that we can be precise, and the professionalism of our combatants allows them to easily meet the standards of proportionality and distinction (between combatants and noncombatants) in such strikes, despite claims to the contrary.

And we also believe that we can live with the second and third order effects of targeted killings. We believe that the care we show will set high standards for the use of such weapons by others who will inevitably follow us. We also believe that any long-term blowback (akin to what Gen. Stanley McChrystal calls the image of "arrogance" such strikes create) is more than offset by the immediate effects on America's safety.

I agree with much of the above. But I also fear that the lack of political consensus at home can drive us to routinely exercise an option whose long-term effects are hard to discern. Which brings us back to last week's stories on American cyberdefense.

In the last Congress, there were two prominent bills introduced to strengthen America's cyberdefenses. Neither came close to passing.

In the Senate, the Collins-Lieberman Bill created a near perfect storm with the American Civil Liberties Union and the American Chamber of Commerce weighing in strongly against the legislation. That two such disparate bodies had issues with the legislation should suggest how far we are from a national consensus.

In the House, a modest proposal from the Intelligence Committee to enhance cybersharing between the private sector and the National Security Agency was met with a presidential veto threat over alleged privacy concerns and was never even considered by the Senate.

Indeed, my preferred option -- a more active and well-regulated role for NSA and Cyber Command on and for American networks -- is almost a third rail in the debate over U.S. cybersecurity. The cybertalent and firepower at Fort Meade, where both are headquartered, are on a short leash because few dare to even address what we would ask them to do or what we would permit them to do on domestic networks.

And hence, last week's "decisions." Rather than settle the roles of these institutions by dealing with the tough issues of security and privacy domestically, we have opted for a policy not unlike targeted killing. Rather than opt for the painful process of building consensus at home, we are opting for "killing" threats abroad in their "safe haven."

We appear more willing to preempt perceived threats "over there" than spill the domestic political blood that would be needed to settle questions about standards for the defense of critical infrastructure, the role of government surveillance or even questions of information sharing. And we seem willing to live with the consequences, not unlike those of targeted killings, of the precedent we set with a policy to shoot on warning.

I understand the advantage that accrues to the offense in dealing with terrorists or cyberthreats. I also accept the underlying legality and morality of preemptive drone or cyberstrikes.

I just hope that we don't do either merely because we don't have the courage to face ourselves and make some hard decisions at home.

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The opinions expressed in this commentary are solely those of Michael Hayden.

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Chicago Marathon registration suspended after web woes

CAPTIONS

Happy reunion
Two runners are excited to see one another on State Street during the early part of the 35th annual Bank of America Chicago Marathon. (Nancy Stone, Chicago Tribune /October 7, 2012)

By Philip Hersh, Tribune reporter

4:22 p.m. CST, February 19, 2013

Bank of America Chicago Marathon officials suspended online registration for the Oct. 13 race after four hours of problems Tuesday.

Registration began at noon.  For the next 90 minutes, however, almost everyone trying to register was greeted with this:

"This site is currently unavailable.

"Please check back later. 

"We apologize for any inconvenience this may cause you."

Continuing problems forced suspension of registration about 4 p.m.  Many people who got several steps into the process were not certain the registration had gone through.

"Our registration provider is still working to resolve the technical issues that have caused the temporary suspension of registration," race spokesperson Lauren Fimbres Wood said in an email. "We will provide another registration update at 6 p.m.

"Please note that the 2013 Chicago Marathon has not yet sold out. ... Additional updates for participants will continue to be posted to our Facebook page."

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