French seal off Mali's Timbuktu, rebels torch library


GAO, Mali (Reuters) - French and Malian troops retook control of Timbuktu, a UNESCO World Heritage site, on Monday after Islamist rebel occupiers fled the ancient Sahara trading town and torched several buildings, including a library holding priceless manuscripts.


The United States and the European Union are backing a French-led intervention in Mali against al Qaeda-allied militants they fear could use the West African state's desert north as a springboard for international attacks.


The recovery of Timbuktu followed the swift capture by French and Malian forces at the weekend of Gao, another major town in Mali's north that had been occupied by the alliance of jihadist groups since last year.


The two-week-old mission by France in its former Sahel colony, at the request of Mali's government, has driven the Islamist rebels northwards out of towns into the desert and mountains.


Without a shot being fired, 1,000 French soldiers and paratroopers and 200 Malian troops seized Timbuktu airport and surrounded the town on the banks of the Niger River, looking to block the escape of insurgents.


In both Timbuktu and Gao, cheering crowds turned out to welcome the French and Malian troops.


A third town in Mali's vast desert north, Kidal, had remained in Islamist militant hands. But Malian Tuareg MNLA rebels, who are seeking autonomy for their northern region, said on Monday they had taken charge in Kidal after Islamist fighters abandoned it.


A diplomat in Bamako confirmed the MNLA takeover of Kidal.


A French military spokesman said the assault forces at Timbuktu were avoiding any fighting inside the city to protect the cultural treasures, mosques and religious shrines in what is considered a seat of Islamic learning.


But Timbuktu Mayor Ousmane Halle told Reuters departing Islamist gunmen had four days earlier set fire to the town's new Ahmed Baba Institute, which contained thousands of manuscripts.


UNESCO spokesman Roni Amelan said the Paris-based U.N. cultural agency was "horrified" by the news of the fire, but was awaiting a full assessment of the damage.


Ali Baba, a worker at the Ahmed Baba Institute, told Sky News in Timbuktu more than 3,000 manuscripts had been destroyed. "They are bandits. They have burned some manuscripts and also stole a lot of manuscripts which they took with them," he said.


Marie Rodet, an African history lecturer at Britain's School of Oriental and African Studies, said Timbuktu held one of the greatest libraries of Islamic manuscripts in the world.


"It's pure retaliation. They (the Islamist militant rebels) knew they were losing the battle and they hit where it really hurts," Rodet told Reuters. "These people are not interested in any intellectual debate. They are anti-intellectual."


ISLAMISTS "ALL FLED"


The Ahmed Baba Institute, one of several libraries and collections in Timbuktu containing fragile documents dating back to the 13th century, is named after a Timbuktu-born contemporary of William Shakespeare and houses more than 20,000 scholarly manuscripts. Some were stored in underground vaults.


The French and Malians have encountered no resistance so far in Timbuktu. But they will now have to comb through a labyrinth of ancient mosques, monuments, mud-brick homes and narrow alleyways to flush out any hiding fighters.


The Islamist forces comprise a loose alliance that groups Al Qaeda in the Islamic Maghreb (AQIM) with Malian Islamist group Ansar Dine and AQIM splinter MUJWA.


They have retreated in the face of relentless French air strikes and superior firepower and are believed to be sheltering in the rugged Adrar des Ifoghas mountain range, north of Kidal.


The MNLA Tuareg rebels who say they now hold Kidal have offered to help the French-led offensive against the al Qaeda-affiliated Islamists. It was not clear, however, whether the French and Malians would steer their offensive further towards Kidal, or hold negotiations with the MNLA.


FRANCE: MALI "BEING LIBERATED"


The world was shocked by Timbuktu's capture in April by Tuareg fighters, whose separatist rebellion was later hijacked by Islamist radicals who imposed severe sharia (Islamic law).


Provoking international outrage, the Muslim militants - who follow a more radical Salafist brand of Islam - destroyed dozens of ancient shrines in Timbuktu sacred to Sufi Muslims, condemning them as idolatrous and un-Islamic.


They also imposed a strict form of Islamic law, or sharia, authorizing the stoning of adulterers and amputations for thieves, while forcing women to go veiled.


On Sunday, many women among the thousands of Gao residents who came out to celebrate the rebels' expulsion made a point of going unveiled. Other residents smoked cigarettes and played music to flout the bans previously imposed by the rebels.


Hundreds of troops from Niger and Chad have been brought to Gao to help secure the town.


"Little by little, Mali is being liberated," French Foreign Minister Laurent Fabius told France 2 television.


Speaking at a news conference in Paris, French President Francois Hollande said French troops would take a step back once the job of retaking key towns was complete, and Malian and other African troops would take over the task of hunting the rebels.


"They are the ones who will go into the northern part, which we know is the most difficult because that's where the terrorists are hiding," Hollande said.


As the French and Malian troops thrust into northern Mali, African troops for a U.N.-backed continental intervention force for Mali, expected to number 7,700, are being flown into the country, despite severe delays and logistical problems.


Outgoing African Union Chairman President Thomas Boni Yayi of Benin scolded AU states at a weekend summit in Addis Ababa for their slow response to assist Mali while former colonial power France took the lead in the military operation.


Burkina Faso, Benin, Nigeria, Senegal, Togo, Niger and Chad are providing soldiers for the AFISMA force. Burundi and other nations have pledged to contribute.


AU Peace and Security Commissioner Ramtane Lamamra said these regional troops could play a useful "clean-up" role once the main military operations against the Islamist rebels end.


Speaking in Addis Ababa on Monday, U.N. Secretary-General Ban Ki-moon said the U.N. was "actively considering" helping the troop-contributing African countries with logistical support.


(Additional reporting by Richard Valdmanis in Sevare, Mali, Bate Felix and David Lewis in Dakar, Maria Golovina in London, Alexandria Sage, Vicky Buffery and Emmanuel Jarry in Paris, Tiemoko Diallo in Bamako, Abdoulaye Massalatchi in Niamey, Richard Lough and Aaron Masho in Addis Ababa; Writing by Pascal Fletcher; Editing by Andrew Heavens)



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Vine Has a Porn Problem Because Of Course It Does






It’s actually pretty surprising that it took everyone three days to figure out that Twitter’s new cell phone camera-powered video sharing app, Vine, is perfect for porn. Vine has it all. It can record reasonably high quality videos of anything you want, on-the-go, and post it publicly for all the Internet to see. You add hashtags so that people can easily find special interest content. There’s even a little comments section so that you can share your thoughts about the distinctively addictive six-second loops. Heck, we’d be surprised if people didn’t immediately start to post pictures of their genitals doing what genitals do. They probably did, actually. Everyone else was just too busy watching pictures of their friends pets and children to notice.


RELATED: The Chinese Want to Know Why Their News Is on Twitter and They Aren’t






But alas, by Sunday everyone had noticed. Although it had already been mentioned on smaller tech blogs, the Vine porn problem started to become widely known after New York Times reporter Nick Bilton tweeted, “Friend: ‘So are people using Vine for porn yet?’ Me: “‘Nah, I don’t think so.’ Friend: ‘Check the hashtag #porn.” Both: “Holy ****!’” And the thing is, he’s totally right. TechCrunch published a post on the NSFW trick — #NSFW works for porn seekers, too, by the way — broaching the topic of Apple‘s App Store coming down hard on the adult-only content. It’s against the rules, see, and Apple has a history of yanking apps that become magnets for all things naughty. The Verge followed up a few minutes later with the headline, “Apple has a porn problem, and it’s about the get worse.”


RELATED: How Not to Get Censored on Twitter


This got us thinking: These App Store restrictions on pornographic content have been around as long as the App Store. Surely in the past five or so years, the moderators know a porn magnet when they see one. Vine is hardly the first video-sharing app to make it through the approval process, not to mention the many photo-sharing apps. (And Apple’s certainly not afraid of enforcing those rules, as we learned when it yanked the 500px app after it started to become home to “pornographic images and material.”) It’s no anomaly that Vine made through, though. As virtually every new video- or photo-sharing service has shown us since the dawn of the Internet, from Flickr to ChatRoulette, it’s very difficult to keep these sites or apps G-rated. So the companies either learn how to police it well, like Flickr does, or they wither and die, as ChatRoulette did.


RELATED: Twitter’s New Hashtag Project Sounds Risky


So it’s hard to believe that the App Store didn’t consider the fact that people might upload pictures of their penises to Vine. It’s more likely that they did and decided to see how Twitter would deal with it, when it became a problem. After all, Vine is not going to be the last video-sharing app to be built and it certainly won’t be the last porn-friendly app to be built either. So Twitter gets to play guinea pig and navigate the tricky terrain of moderating user-generated content in real time. It’s a good thing they already have a boatload of experience doing that on Twitter! See, look how fast they came up with a solution. A company statement reads:


RELATED: The Good, the Bad, and the Fuzzy of Twitter’s New Censorship Rules



Users can report videos as inappropriate within the product if they believe the content to be sensitive or inappropriate (e.g. nudity, violence, or medical procedures). Videos that have been reported as inappropriate have a warning message that a viewer must click through before viewing the video.


Uploaded videos that are reported and determined to violate our guidelines will be removed from the site, and the user that posted the video may be terminated.



Twitter being Twitter — that is, big proponents of the free flow of information — they stop short of defining “inappropriate” in Vine’s terms and conditions. Unlike Twitter, which has been free to operate on the whole of the Internet, however, Vine lives in Apple’s house now. If Twitter’s hands off policy doesn’t do enough to keep smut off the iPhone, Apple will surely pull the plug, and then, well — then we’ll be back to where we were last week.


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How SAG Stars Got Their Start: Sofia Vergara Credits Her 'Hooker Looks'



Today, she's one of the world's sexiest stars. But Sofia Vergara wasn't quite as celebrated for her curves early in her career.

The Modern Family actress was among a handful of actors who kicked off Sunday's Screen Actors Guild Awards with personal stories about how they got started in the business. Vergara, 40, joked about her famous figure.

"I grew up in Barranquilla, Colombia, in a very traditional Catholic home," she said. "My father told me that if I ever did anything artistic, I was going to look like a hooker. I told him, 'With these huge boobs that I inherited from your mother, I already look like a hooker!' "

30 Rock's Jane Krakowski had a little fun with Hollywood's reputation for having no use for aging women. At 12 years old, she said, she played Chevy Chase's niece in National Lampoon's Vacation. Krakowski, 44, added: "Today, I would be cast as his wife. In two years, I will play his mother."

Helen Hunt detailed the crazy variety of her roles – "I've played a waitress, a cuckoo clock, a quarterback and a sex surrogate" – while Alfre Woodard said she was surprised she became an actor at all, since she always had trouble remembering people's names.

Chris Tucker said he became "fascinated with the art" as a 9-year-old when he saw Richard Pryor in Stir Crazy.

For Hal Holbrook, the inspiration was simpler. He was lazy – and acting class didn't give you homework.

How They Officially Joined the Club

Other stars reflected specifically on the moment they got their SAG cards – a momentous moment for many, including Anne Hathaway, who mentioned it at the beginning of her speech in accepting the best supporting actress honor for her role in Les Misérables.

"I got my SAG card when I was 14," she said. "It felt like the beginning of the world. I have loved every single minute of my life as an actor. And I have been the recipient of so much kindness and support from actors in this room and out of it. ... Thank you for this award."

Jennifer Lawrence also mentioned getting a SAG card in her acceptance speech, when she won best actress for Silver Linings Playbook. Like Hathaway, Lawrence – who is now 22 – was 14 at the time.

"I want to thank MTV," she said. "I did an MTV promo for My Super Sweet 16. And I remember getting [the card] in the mail and it being the best day of my entire life because it officially made me a professional actor. Which put me in a category with all of you."

"And now I have this naked statue that means that some of you even voted for me," she added.

Like many actors, Twilight's Peter Facinelli and Modern Family's Ty Burrell both got their SAG cards working on Law & Order.

Facinelli, talking on the red carpet, said he dropped out of college after that. "I ran into [Law & Order creator] Dick Wolf. ... I said, 'I didn't get my diploma because of you, but I got my SAG card because of you." But, Facinelli doesn't regret not finishing school: "I was majoring in theater. It all worked out."

Burrell says he was "unmemorable" on the crime show, which allowed him to play different roles on different episodes. "Nobody noticed that now I was playing an assassin," he joked.

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CDC: Flu seems to level off except in the West


New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.


The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.


Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.


There is still vaccine available although it may be hard to find. The CDC has a website that can help.


___


CDC: http://www.cdc.gov/flu/


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Seoul pulls Asian shares down, solid economic data helps

TOKYO (Reuters) - Tech-heavy South Korean shares dragged down the broader Asian share index on Monday on fears of weaker earnings, but improving economic prospects in Europe and solid U.S. profit reports underpinned sentiment.


The MSCI's broadest index of Asia-Pacific shares outside Japan <.miapj0000pus> inched down 0.2 percent, after seeing its biggest weekly loss in two months last week. Asian markets were in positive territory except in Seoul and Jakarta.


The Korea Composite Stock Price Index (KOSPI) <.ks11> extended losses to an 8-week low with a 0.6 percent slip, as a weakening yen soured the outlook for local exporters and foreign investors reduced their holdings.


Tech-heavy South Korea was also vulnerable to a clouding outlook for high-end smartphone device shipments.


"Investors have begun preempting concerns about exporters' outlooks since automakers announced weak earnings last week, while large-caps continue to be pressured by foreign selloffs," said Kim Hyung-ryol, an analyst at Kyobo Securities.


Global investor sentiment improved on Friday when the German Ifo business morale index improved in January to its highest in more than half a year, further evidence that Europe's largest economy is gathering speed again, and European banks were set to repay the European Central Bank a larger sum of money than expected to underscore stabilising financial system in the euro zone.


In China, data on Sunday showed profits earned by industrial companies rose 17.3 percent in December from a year earlier to 895.2 billion yuan ($143.9 billion), adding to evidence of a fourth-quarter economic recovery.


The yen extended losses to fresh lows, but Japanese equities gave up earlier gains and eased ahead of Japan's corporate reporting season which enters full swing this week.


Japan's Nikkei stock average <.n225> edged down 0.1 percent after jumping 2.9 percent on Friday to log an 11th straight week of gains, its longest such run since 1971. <.t/>


Against the yen, the dollar hit 91.26 early on Monday, its highest level since June 2010 while the euro touched 122.91, its highest point since April.


New Prime Minister Shinzo Abe has called for aggressive monetary easing and huge fiscal spending to beat deflation. The yen has fallen some 13 percent since mid-November when he began making those calls as part of his election campaign.


"The potent mix of Abenomics and strong risk appetite abroad is continuing to soften the yen, which means investors will still be buying stocks," said Masayuki Doshida, senior market analyst at Rakuten Securities.


In sharp contrast to U.S. and German equities, the Nikkei remains well below levels before the financial crisis in 2008, reflecting the magnitude of negative effect from the yen's strength. The benchmark Standard & Poor's 500 Index <.spx> closed at their highest in more than five years on solid U.S. corporate earnings on Friday and Frankfurt's DAX index <.gdaxi> also scaled five-year highs.


The yen is still stronger than around 95 yen before the 2008 financial crisis, but both the euro and the dollar measured against a basket of key currencies <.dxy> hover at levels far below the pre-crisis levels.


SAFE HAVEN SUFFERS


The improving global macroeconomic environment has curbed interest in safe haven assets such as gold.


Spot gold steadied around $1,659.90 (1,053.44 pounds) an ounce on Monday, still below its 200-day moving average. As riskier equities rallied on Friday, bullion saw its biggest weekly drop this year on Friday.


U.S. crude inched up 0.1 percent to $95.95 a barrel and Brent steadied around $113.23.


London copper, another industrial commodity linked to demand prospects, rose 0.4 percent to $8,065 a tonne.


With easing stress in financial markets, investors pumped $5.65 billion into stock funds worldwide in the latest week, with most of it flowing into emerging market stock funds, data from EPFR Global showed on Friday.


The euro hovered near an 11-month high of $1.3480 hit on Friday. The Australian dollar stumbled to an eight-month low against the euro early on Monday. European shares scaled fresh multi-month peaks on Friday.


Investors will focus this week on the Federal Reserve's Open Market Committee statement on Wednesday and U.S. nonfarm payrolls due on Friday.


Sluggish equities weighed on Asian credit markets, widening the spread on the iTraxx Asia ex-Japan investment-grade index by 1 basis point.


(Additional reporting by Joyce Lee in Seoul and Sophie Knight in Tokyo; Editing by Edwina Gibbs & Kim Coghill)



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Nightclub fire kills 233 in Brazil


SANTA MARIA, Brazil (Reuters) - A nightclub fire killed at least 233 people in southern Brazil on Sunday when a band's pyrotechnics show set the building ablaze and fleeing partygoers stampeded toward blocked exits in the ensuing panic.


Most of those who died were suffocated by toxic fumes that rapidly filled the crowded club after sparks from pyrotechnics used by the band for visual effects set fire to soundproofing on the ceiling, local fire officials said.


"Smoke filled the place instantly, the heat became unbearable," survivor Murilo Tiescher, a medical student, told GloboNews TV. "People could not find the only exit. They went to the toilet thinking it was the exit and many died there."


Firemen said one exit was locked and that club bouncers, who at first thought those fleeing were trying to skip out on bar tabs, initially blocked patrons from leaving. The security staff relented only when they saw flames engulfing the ceiling.


The tragedy in the university town of Santa Maria in one of Brazil's most prosperous states comes as the country scrambles to improve safety, security and logistical shortfalls before the 2014 World Cup soccer tournament and the 2016 Olympics, both intended to showcase the economic advances and first-world ambitions of Latin America's largest nation.


In Santa Maria, a city of more than 275,000 people, rescue workers and weary officials wept alongside family and friends of the victims at a gymnasium being used as a makeshift morgue.


"It's the saddest, saddest day of my life," said Neusa Soares, the mother of one of those killed, 22-year-old Viviane Tolio Soares. "I never thought I would have to live to see my girl go away."


President Dilma Rousseff cut short an official visit to Chile and flew to Santa Maria, where she wept as she spoke to relatives of the victims, most of whom were university students.


"All I can say at the moment is that my feelings are of deep sorrow," said Rousseff, who began her political career in Rio Grande do Sul, the state where the fire occurred.


It was the deadliest nightclub fire since 309 people died in a discotheque blaze in China in 2000 and Brazil's worst fire at an entertainment venue since a disgruntled employee set fire to a circus in 1961, killing well over 300 people.


'BARRIER OF THE DEAD'


Local authorities said 120 men and 113 women died in the fire, and 92 people are still being treated in hospitals.


News of the fire broke on Sunday morning, when local news broadcast images of shocked people outside the nightclub called Boate Kiss. Gradually, grisly details emerged.


"We ran into a barrier of the dead at the exit," Colonel Guido Pedroso de Melo, commander of the fire brigade in Rio Grande do Sul, said of the scene that firefighters found on arrival. "We had to clear a path to get to the rest of those that were inside."


Pedroso de Melo said the popular nightclub was overcrowded with 1,500 people packed inside and they could not exit fast.


"Security guards blocked their exit and did not allow them to leave quickly. That caused panic," he said.


The fire chief said the club was authorized to be open, though its permit was in the process of being renewed. But he pointed to several egregious safety violations - from the flare that went off during the show to the locked door that kept people from getting out.


"The problem was the use of pyrotechnics, which is not permitted," Pedroso de Melo said.


The club's management said in a statement that its staff was trained and prepared to deal with any emergency. It said it would help authorities with their investigation.


One of the club's owners has surrendered to police for questioning, GloboNews TV reported.


When the fire began at about 2:30 a.m., many revelers were unable to find their way out in the chaos.


"It all happened so fast," survivor Taynne Vendrusculo told GloboNews TV. "Both the panic and the fire spread rapidly, in seconds."


Once security guards realized the building was on fire, they tried in vain to control the blaze with a fire extinguisher, according to a televised interview with one of the guards, Rodrigo Moura. He said patrons were trampled as they rushed for the doors, describing it as "a horror film."


Band member Rodrigo Martins said the fire started after the fourth or fifth song and the extinguisher did not work.


"It could have been a short circuit, there were many cables there," Martins told Porto Alegre's Radio Gaucha station. He said there was only one door and it was locked. A band member died in the fire.


CELL PHONES STILL RINGING


TV footage showed people sobbing outside the club before dawn, while shirtless firefighters used sledge hammers and axes to knock down an exterior wall to open up an exit.


Rescue officials moved the bodies to the local gym and separated them by gender. Male victims were easier to identify because most had identification on them, unlike the women, whose purses were left scattered in the devastated nightclub.


Piles of shoes remained in the burnt-out club, along with tufts of hair pulled out by people fleeing desperately. Firemen who removed bodies said victims' cell phones were still ringing.


The disaster recalls other incidents including a 2003 fire at a nightclub in West Warwick, Rhode Island, that killed 100 people, and a Buenos Aires nightclub blaze in 2004 that killed nearly 200. In both incidents, a band or members of the audience ignited fires that set the establishment ablaze.


The Rhode Island fire shocked local and federal officials because of the rarity of such incidents in the United States, where enforcement of safety codes is considered relatively strict. After the Buenos Aires blaze, Argentine officials closed many nightclubs and other venues and ultimately forced the city's mayor from office because of poor oversight of municipal codes.


The fire early on Sunday occurred in one of the wealthiest, most industrious and culturally distinct regions of Brazil. Santa Maria is about 186 miles west of Porto Alegre, the capital of a state settled by Germans and other immigrants from northern Europe.


Local clichés paint the region as stricter and more organized than the rest of Brazil, where most residents are a mix descended from native tribes, Portuguese colonists, African slaves, and later influxes of immigrants from southern Europe.


Rio Grande do Sul state's health secretary, Ciro Simoni, said emergency medical supplies from all over the state were being sent to the scene. States from all over Brazil offered support, and messages of sympathy poured in from foreign leaders.


(Additional reporting by Guillermo Parra-Bernal, Gustavo Bonato, Jeferson Ribeiro, Eduardo Simões, Brian Winter and Guido Nejamkis.; Writing by Paulo Prada and Anthony Boadle; Editing by Todd Benson, Kieran Murray and Christopher Wilson)



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Google reportedly ‘actively exploring’ the smartwatch market







In October, Google (GOOG) was granted a patent for a smartwatch with a flip-up display, however it was assumed that the concept, like most patents, would never move beyond the drawing board. A new report from Business Insider claims that the company is now “actively exploring” the idea of producing its own smartwatch and is even looking into ways it could market such a device. Information is slim and it is unclear what size the device would be or if it would even run the company’s Android operating system. Business Insider cautioned that the project is still in a “very early stage” and “it remains to be seen if Google will actually end up bringing a smart watch to market.” As the Pebble has shown, however, there is clearly a market for smartwatches.


[More from BGR: Unlocking your smartphone will be illegal starting next week]






This article was originally published on BGR.com


Wireless News Headlines – Yahoo! News





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Michelle Kwan's Wedding Brings Olympic Stars Together: Pics Then & Now





Catch up with Michelle Kwan and the all-star figure skaters who attended her Jan. 19 dream wedding








Credit: Caitlin Maloney



Updated: Friday Jan 25, 2013 | 05:00 PM EST
By: NANCY MATTIA AND CYNTHIA WANG




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CDC: Flu seems to level off except in the West


New government figures show that flu cases seem to be leveling off nationwide. Flu activity is declining in most regions although still rising in the West.


The Centers for Disease Control and Prevention says hospitalizations and deaths spiked again last week, especially among the elderly. The CDC says quick treatment with antiviral medicines is important, in particular for the very young or old. The season's first flu case resistant to treatment with Tamiflu was reported Friday.


Eight more children have died from the flu, bringing this season's total pediatric deaths to 37. About 100 children die in an average flu season.


There is still vaccine available although it may be hard to find. The CDC has a website that can help.


___


CDC: http://www.cdc.gov/flu/


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Wall Street Week Ahead: Bears hibernate as stocks near record highs

NEW YORK (Reuters) - Stocks have been on a tear in January, moving major indexes within striking distance of all-time highs. The bearish case is a difficult one to make right now.


Earnings have exceeded expectations, the housing and labor markets have strengthened, lawmakers in Washington no longer seem to be the roadblock that they were for most of 2012, and money has returned to stock funds again.


The Standard & Poor's 500 Index <.spx> has gained 5.4 percent this year and closed above 1,500 - climbing to the spot where Wall Street strategists expected it to be by mid-year. The Dow Jones industrial average <.dji> is 2.2 percent away from all-time highs reached in October 2007. The Dow ended Friday's session at 13,895.98, its highest close since October 31, 2007.


The S&P has risen for four straight weeks and eight consecutive sessions, the longest streak of days since 2004. On Friday, the benchmark S&P 500 ended at 1,502.96 - its first close above 1,500 in more than five years.


"Once we break above a resistance level at 1,510, we dramatically increase the probability that we break the highs of 2007," said Walter Zimmermann, technical analyst at United-ICAP, in Jersey City, New Jersey. "That may be the start of a rise that could take equities near 1,800 within the next few years."


The most recent Reuters poll of Wall Street strategists estimated the benchmark index would rise to 1,550 by year-end, a target that is 3.1 percent away from current levels. That would put the S&P 500 a stone's throw from the index's all-time intraday high of 1,576.09 reached on October 11, 2007.


The new year has brought a sharp increase in flows into U.S. equity mutual funds, and that has helped stocks rack up four straight weeks of gains, with strength in big- and small-caps alike.


That's not to say there aren't concerns. Economic growth has been steady, but not as strong as many had hoped. The household unemployment rate remains high at 7.8 percent. And more than 75 percent of the stocks in the S&P 500 are above their 26-week highs, suggesting the buying has come too far, too fast.


MUTUAL FUND INVESTORS COME BACK


All 10 S&P 500 industry sectors are higher in 2013, in part because of new money flowing into equity funds. Investors in U.S.-based funds committed $3.66 billion to stock mutual funds in the latest week, the third straight week of big gains for the funds, data from Thomson Reuters' Lipper service showed on Thursday.


Energy shares <.5sp10> lead the way with a gain of 6.6 percent, followed by industrials <.5sp20>, up 6.3 percent. Telecom <.5sp50>, a defensive play that underperforms in periods of growth, is the weakest sector - up 0.1 percent for the year.


More than 350 stocks hit new highs on Friday alone on the New York Stock Exchange. The Dow Jones Transportation Average <.djt> recently climbed to an all-time high, with stocks in this sector and other economic bellwethers posting strong gains almost daily.


"If you peel back the onion a little bit, you start to look at companies like Precision Castparts , Honeywell , 3M Co and Illinois Tool Works - these are big, broad-based industrial companies in the U.S. and they are all hitting new highs, and doing very well. That is the real story," said Mike Binger, portfolio manager at Gradient Investments, in Shoreview, Minnesota.


The gains have run across asset sizes as well. The S&P small-cap index <.spcy> has jumped 6.7 percent and the S&P mid-cap index <.mid> has shot up 7.5 percent so far this year.


Exchange-traded funds have seen year-to-date inflows of $15.6 billion, with fairly even flows across the small-, mid- and large-cap categories, according to Nicholas Colas, chief market strategist at the ConvergEx Group, in New York.


"Investors aren't really differentiating among asset sizes. They just want broad equity exposure," Colas said.


The market has shown resilience to weak news. On Thursday, the S&P 500 held steady despite a 12 percent slide in shares of Apple after the iPhone and iPad maker's results. The tech giant is heavily weighted in both the S&P 500 and Nasdaq 100 <.ndx> and in the past, its drop has suffocated stocks' broader gains.


JOBS DATA MAY TEST THE RALLY


In the last few days, the ratio of stocks hitting new highs versus those hitting new lows on a daily basis has started to diminish - a potential sign that the rally is narrowing to fewer names - and could be running out of gas.


Investors have also cited sentiment surveys that indicate high levels of bullishness among newsletter writers, a contrarian indicator, and momentum indicators are starting to also suggest the rally has perhaps come too far.


The market's resilience could be tested next week with Friday's release of the January non-farm payrolls report. About 155,000 jobs are seen being added in the month and the unemployment rate is expected to hold steady at 7.8 percent.


"Staying over 1,500 sends up a flag of profit taking," said Jerry Harris, president of asset management at Sterne Agee, in Birmingham, Alabama. "Since recent jobless claims have made us optimistic on payrolls, if that doesn't come through, it will be a real risk to the rally."


A number of marquee names will report earnings next week, including bellwether companies such as Caterpillar Inc , Amazon.com Inc , Ford Motor Co and Pfizer Inc .


On a historic basis, valuations remain relatively low - the S&P 500's current price-to-earnings ratio sits at 15.66, which is just a tad above the historic level of 15.


Worries about the U.S. stock market's recent strength do not mean the market is in a bubble. Investors clearly don't feel that way at the moment.


"We're seeing more interest in equities overall, and a lot of flows from bonds into stocks," said Paul Zemsky, who helps oversee $445 billion as the New York-based head of asset allocation at ING Investment Management. "We've been increasing our exposure to risky assets."


For the week, the Dow climbed 1.8 percent, the S&P 500 rose 1.1 percent and the Nasdaq advanced 0.5 percent.


(Reporting by Ryan Vlastelica; Additional reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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