Wider Chaos Feared as Syrian Rebels and Kurds Clash

Lynsey Addario for The New York Times

Syrian Kurds in Ras al-Ain are seeking refuge across the border in Ceylanpinar, Turkey.

CEYLANPINAR, Turkey — In plain view of the patrons at an outdoor cafe here in this border town, the convoy of gun trucks waving the flag of the Syrian rebels whizzed through the Syrian village of Ras al-Ain. They had not come to fight their primary enemy, the soldiers of Bashar al-Assad’s government. They had rushed in to battle the ethnic Kurds.

Lynsey Addario for The New York Times

Syrian Kurds waited for bread handouts in Ceylanpinar, Turkey, where they have sought refuge.

The confrontation spoke not only to the violence that has enveloped Syria, but also to what awaits if the government falls. The fear — already materializing in these hills — is that Syria’s ethnic groups will take up arms against one another in a bloody, post-Assad contest for power.

The Kurdish militias in northern Syria had hoped to stay out of the civil war raging in Syria. They were focused on preparing to secure an autonomous enclave for themselves within Syria should the rebels succeed in toppling the government. But slowly, inexorably, they have been dragged into the fighting and now have one goal in mind, their autonomy, which also means the balkanization of the state.

“We want to have a Kurdish nation,” said Divly Fadal Ali, 18, who fled the fighting and was recently staying in a local community center here for Kurdish refugees. “We want our own schools, our own hospitals. We want the government to admit our existence. We want recognition of our Kurdish identity.”

These skirmishes between Kurds and Arabs take on a darker meaning for Syria as the rebels appear each day to gain momentum, and the government appears less and less able to restore control. The rebels have taken over military bases, laid siege to Damascus and forced the shutdown of the airport.

But the rebels are largely Sunni Arabs, and the most effective among them are extremists aligned with Al Qaeda, a prospect that worries not only the West, but the Christians, Shiites, Druze — and Kurds — of Syria.

The fighting in Ras al-Ain, which came after a fierce battle between rebel and government forces last month, demonstrated the complexity of a bloody civil war that has already claimed more than 40,000 lives. Like the sectarian battles in Iraq after the American invasion, the recent violence between Arabs and Kurds in Syria indicates the further unraveling of a society whose mix of sects, identities and traditions were held together by the yoke of a dictator.

Analysts fear this combustible environment could presage a bloody ethnic and sectarian conflict that will resonate far beyond Syria’s borders, especially if it involves the Kurds. There is concern that Iraq’s Kurds, who are already training Syrian Kurds to fight, may jump into the Syria fight to protect their ethnic brethren. That could also pull in Turkey, which fears that an autonomous Kurdish region in Syria would become a haven for Kurdish militants to carry out cross-border attacks in the Kurdish areas in southeastern Turkey.

“The fear that an Arab-Kurdish confrontation has been ignited might lead the Kurds to ask for additional security forces to protect their lands,” said Maria Fantappie, Iraq analyst at the International Crisis Group, who is helping to prepare a report on the Syrian Kurds.

She said that the Syrian Kurdish fighters being trained in northern Iraq were on standby and could be sent to Syria, which would escalate the situation.

Before the uprising in Syria, the Kurds in Ras al-Ain lived peacefully with their Arab neighbors, they say. But the war has shredded those old bonds just as surely as the revolutions in the region have prompted the Kurds to dream of an independent nation uniting the Kurds in Syria, Iraq, Turkey and Iran, and put their own stamp on the great contest for power under way in the Middle East.

“Our time has come after so much suffering and persecution,” said Barham Salih, the former prime minister of Iraq’s regional Kurdish government. “The 20th century was cruel to the Kurds. Our rights, identity and culture were brutally suppressed.”

Sebnem Arsu contributed reporting from Ceylanpinar, and an employee of The New York Times contributed reporting from Ras al-Ain, Syria.

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Meet PEOPLE's 2012 Heroes of the Year

Heroes Among Us

By Kristen Mascia

12/06/2012 at 02:25 PM EST

They stepped up to help people in need, often putting themselves in harm's way.

One thing PEOPLE's incredible 2012 Heroes of the Year award winners all have in common: selflessness and compassion. This week, PEOPLE profiles individuals whose extraordinary bravery and kindness stood out this year.

Michael McDonnell, 51, and Dylan Smith, 23, of Belle Harbor, N.Y., are two of them.

During Superstorm Sandy Oct. 29, as a 6 ft. surge roared down their block, and a fire from a gas line explosion engulfed houses around them, McDonnell, a sales director for Chefs Diet, and Smith, a lifeguard, ushered six people to safety with a homemade rope bridge and Smith's surfboard.

Says neighbor Katie Cregg, whom the pair helped: "Michael just took charge. He looked me straight in the eye, and I knew then and there we were going to be okay. And then the kid with the surfboard arrived like an angel, and everyone's spirits lifted."

McDonnell and Smith are in good company.

Among 2012's other winners: Father and son pair J.D., 52, and James Bennett, 32, who pulled two toddlers from a burning van in Sanger, Calif.; Madison Wallraf, 16, of Johnsburg, Ill., who raced in and out of a burning barn to help save 22 horses; and N.Y.P.D. Officer Larry DePrimo, who bought shoes for a barefoot man during a cold night in New York City last month – and became a worldwide hero.

An overnight celebrity since a photo of his kind act went viral, DePrimo, 25, says he hopes what he did inspires others.

"I just love to help people," the humble officer says. "That's why I became a cop."

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Wall Street flat, Apple helps techs to rise

NEW YORK (Reuters) - Stocks drifted near the unchanged mark on Thursday as investors postponed big bets before the November employment report on Friday, but technology stocks rose on gains in Apple and Broadcom.

Monthly payroll numbers, to be released by the Labor Department, are expected to show a sharp slowdown in jobs growth because of superstorm Sandy.

Broadcom boosted other semiconductor companies a day after it forecast fourth-quarter revenue at the high end of its target range due to slightly better-than-expected sales in its mobile business. Shares rose 1.9 percent to $32.97.

The S&P technology index <.gspt> was the best performing of the 10 major S&P sectors, gaining 0.36 percent. The PHLX semiconductor index <.sox> rose 0.5 percent.

Apple was up 1.4 percent after losing as much as 3.7 percent at the open. The stock suffered its biggest one-day drop in four years on Wednesday due to concerns about higher capital gains taxes in 2013 and the company's market share in the tablet market.

Apple Inc's rank in China's smartphone market fell to No. 6 in the third quarter as it faces tougher competition from Chinese brands, research firm IDC said.

Broader moves were limited, however, as traders focused on the "fiscal cliff" debate. About three weeks remain before a series of tax increases and spending cuts would begin that could slow growth. Legislators are trying to come up with a deal to avoid some of the negative effects on the economy while still reducing the U.S. budget deficit.

While Republican leaders in the U.S. House of Representatives insist that raising tax rates on the rich is not negotiable, some GOP lawmakers now see it as inevitable to avoid the fiscal cliff.

"As we get close to the last two weeks, things will pick up," said Gordon Charlop, managing director at Rosenblatt Securities in New York. Congress and the White House will have final discussions near the end of the year about how to handle the "fiscal cliff," he said.

Without action from Congress, tax cuts on capital gains and dividends will expire at the end of 2012, which has contributed to selling certain stocks that have done extremely well in recent years, such as Apple.

The Dow Jones industrial average <.dji> slipped 7.93 points, or 0.06 percent, at 13,026.56. The Standard & Poor's 500 Index <.spx> fell 0.14 point, or 0.01 percent, at 1,409.14. The Nasdaq Composite Index <.ixic> gained 8.31 points, or 0.28 percent, at 2,982.00.

Sirius XM Radio shares rose 1.4 percent to $2.81 after its board approved a $2 billion stock repurchase and declared a special dividend, giving a big payout to its largest shareholder, Liberty Media , which rose 2.3 percent to $108.87.

Garmin shares rose 4.5 percent to $41.49 after Standard & Poor's said it would add the navigation device maker to the S&P 500 index. Garmin will replace R.R. Donnelley & Sons after the close of trading on December 11.

(Editing by Kenneth Barry)

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Celebrations planned as Wash. legalizes marijuana

SEATTLE (AP) — Legal marijuana possession becomes a reality under Washington state law on Thursday, and some people planned to celebrate the new law by breaking it.

Voters in Washington and Colorado last month made those the first states to decriminalize and regulate the recreational use of marijuana. Washington's law takes effect Thursday and allows adults to have up to an ounce of pot — but it bans public use of marijuana, which is punishable by a fine, just like drinking in public.

Nevertheless, some people planned to gather at 12:01 a.m. PST Thursday to smoke in public beneath Seattle's Space Needle. Others planned a midnight party outside the Seattle headquarters of Hempfest, the 21-year-old festival that attracts tens of thousands of pot fans every summer.

"This is a big day because all our lives we've been living under the iron curtain of prohibition," said Hempfest director Vivian McPeak. "The whole world sees that prohibition just took a body blow."

In another sweeping change for Washington, Gov. Chris Gregoire on Wednesday signed into law a measure that legalizes same-sex marriage. The state joins several others that allow gay and lesbian couples to wed.

That law also takes effect Thursday, when gay and lesbian couples can start picking up their wedding certificates and licenses at county auditors' offices. Those offices in King County, the state's largest and home to Seattle, and Thurston County, home to the state capital of Olympia, planned to open the earliest, at 12:01 a.m. Thursday, to start issuing marriage licenses. Because the state has a three-day waiting period, the earliest that weddings can take place is Sunday.

The Seattle Police Department provided this public marijuana use enforcement guidance to its officers via email Wednesday night: "Until further notice, officers shall not take any enforcement action — other than to issue a verbal warning — for a violation of Initiative 502."

Thanks to a 2003 law, marijuana enforcement remains the department's lowest priority. Even before I-502 passed on Nov. 6, police rarely busted people at Hempfest, despite widespread pot use, and the city attorney here doesn't prosecute people for having small amounts of marijuana.

Officers will be advising people to take their weed inside, police spokesman Jonah Spangenthal-Lee wrote on the SPD Blotter. "The police department believes that, under state law, you may responsibly get baked, order some pizzas and enjoy a 'Lord of the Rings' marathon in the privacy of your own home, if you want to."

Washington's new law decriminalizes possession of up to an ounce for those over 21, but for now selling marijuana remains illegal. I-502 gives the state a year to come up with a system of state-licensed growers, processors and retail stores, with the marijuana taxed 25 percent at each stage. Analysts have estimated that a legal pot market could bring Washington hundreds of millions of dollars a year in new tax revenue for schools, health care and basic government functions.

But marijuana remains illegal under federal law. That means federal agents can still arrest people for it, and it's banned from federal properties, including military bases and national parks.

The Justice Department has not said whether it will sue to try to block the regulatory schemes in Washington and Colorado from taking effect.

"The department's responsibility to enforce the Controlled Substances Act remains unchanged," said a statement issued Wednesday by the Seattle U.S. attorney's office. "Neither states nor the executive branch can nullify a statute passed by Congress" — a non-issue, since the measures passed in Washington and Colorado don't "nullify" federal law, which federal agents remain free to enforce.

The legal question is whether the establishment of a regulated marijuana market would "frustrate the purpose" of the federal pot prohibition, and many constitutional law scholars say it very likely would.

That leaves the political question of whether the administration wants to try to block the regulatory system, even though it would remain legal to possess up to an ounce of marijuana.

Colorado's measure, as far as decriminalizing possession goes, is set to take effect by Jan. 5. That state's regulatory scheme is due to be up and running by October 2013.

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Johnson can be reached at https://twitter.com/GeneAPseattle

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Cheering U.N. Palestine Vote, New York Synagogue Tests Its Members

Congregation B’nai Jeshurun, a large synagogue on the Upper West Side of Manhattan, is known for its charismatic rabbis, its energetic and highly musical worship, and its liberal stances on social causes.

But on Friday, when its rabbis and lay leaders sent out an e-mail enthusiastically supporting the vote by the United Nations to upgrade Palestine to a nonmember observer state, the statement was more than even some of its famously liberal congregants could stomach.

“The vote at the U.N. yesterday is a great moment for us as citizens of the world,” said the e-mail, which was sent to all congregants. “This is an opportunity to celebrate the process that allows a nation to come forward and ask for recognition.”

The statement, at a time when the United Nations’ vote was opposed by the governments of the United States and Israel, as well as by the leadership of many American Jewish organizations, reflected a divide among American Jews and a willingness to publicly disagree with Israel.

Clergy at several Jewish congregations have, in various ways, spoken out sympathetically about the United Nations’ vote. But B’nai Jeshurun stood out because of its size and prominence, and reaction from congregants was swift. Allan Ripp, a member, said he and his wife were appalled.

“We are just sort of in a state of shock,” he said. “It’s not as if we don’t support a two-state solution, but to say with such a warm embrace — it is like a high-five to the P.L.O., and that has left us numb.”

Other congregants, however, said it was a bold move that they welcomed.

“I thought it was very courageous of them,” said Gil Kulick, a congregant. “I think as of late there has been a reluctance to speak out on this issue,” he added, “and that’s why I was really delighted that they chose to take a strong unequivocal stand.”

American Jews have long had a vigorous, and sometimes vitriolic, debate about the positions of the Israeli government and the peace process with the Palestinians. But the tendency has been to keep critical views within the fold.

“At most times we impose a kind of discipline upon ourselves — nobody imposes it on us — particularly on a matter that the Israeli government has asked for unanimous support from the Jewish community,” said Samuel Norich, the publisher of The Forward, a Jewish affairs weekly based in New York. “When they speak out, that is rare,” Mr. Norich said of mainstream congregations.

Gary Rosenblatt, the editor and publisher of The Jewish Week, the largest-circulation Jewish newspaper in the country, said, “I think the sense of a need for a unified front in the American Jewish community is breaking down.”

In White Plains, a group of synagogues from different branches of Judaism — Conservative, Reform and Reconstructionist — sent an e-mail to congregants after the United Nations’ vote expressing cautious optimism about Palestine’s new status.

“For their own reasons, most of the American Jewish organizations felt it was necessary to fall into line,” said Lester Bronstein, a rabbi at Bet Am Shalom Synagogue in White Plains and one of the signers of the letter. “I think what we said is indicative of what more and more rabbis believe, and more and more, but in trickles, are able to say it.”

 The rabbis at B’nai Jeshurun — J. Rolando Matalon, Marcelo R. Bronstein and Felicia L. Sol — did not respond to requests for comment on the e-mail, which was also signed by the president of the synagogue’s board of directors and its executive director.

While its gist — that the vote could be a step toward a two-state solution and Middle East peace — was not surprising to congregants, its tone and its timing were jarring, some said.

“It’s very shocking to many of the congregants that this position was taken publicly and this e-mail was sent around,” said Eve Birnbaum, a member of the congregation for about 15 years.

“I am very dismayed, as a longstanding member of the synagogue, that the rabbis and the board would take a position that is contrary to what many members believe, contrary to the peace process,” she added.

It was not immediately clear how widespread opposition to the rabbis’ e-mail has been within the congregation, but Mr. Ripp said he had been inundated with messages from people upset about the rabbis’ statement, and some members had posted comments online and circulated e-mails expressing concern.

But others supported the action.

This article has been revised to reflect the following correction:

Correction: December 4, 2012

An earlier version of this article misspelled the name of the congregation at one point.  It is B’nai Jeshurun, not B’nai Jeshrun,

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Facebook’s Instagram cuts support for key Twitter integration

SAN FRANCISCO (Reuters) – Facebook Inc’s recently acquired photo-sharing service, Instagram, removed a key element of its integration with Twitter, signaling a deepening rift between two of the Web’s dominant social media companies.

Instagram’s Chief Executive Kevin Systrom said Wednesday his company turned off support for Twitter “cards” in order to drive Twitter users to Instagram’s own website. Twitter “cards” are a feature that allows multimedia content like YouTube videos and Instagram photos to be embedded and viewed directly within a Twitter message.

Instagram’s move marked the latest clash between Facebook and Twitter since April, when Facebook, the world’s no. 1 social network, outbid Twitter to nab fast-growing Instagram in a cash-and-stock deal valued at the time at $ 1 billion. The acquisition closed in September for roughly $ 715 million, due to Facebook’s recent stock drop.

The companies’ ties have been strained since. In July, Twitter blocked Instagram from using its data to help new Instagram users find friends.

Beginning earlier this week, Twitter’s users began to complain in public messages that Instagram photos did not seem to display properly on Twitter’s website.

Instagram CEO Kevin Systrom confirmed Wednesday that his company had decided that its users should view photos on Instagram’s own Web pages and took steps to change its policies.

“We believe the best experience is for us to link back to where the content lives,” Systrom said in a statement, citing recent improvements to Instagram’s website.

“A handful of months ago, we supported Twitter cards because we had a minimal web presence,” Systrom said, noting that the company has since released new features that allow users to comment about and “like” photos directly on Instagram’s website.

The move escalates a rivalry in the fast-growing social networking sector, where the biggest players have sought to wall off access to content from rival services and to their ranks of users. Photos are among the most popular features on both Facebook and Twitter, and Instagram’s meteoric rise in recent years has further proved how picture-sharing has become a key front in the battle for social Internet supremacy.

Instagram, which has 100 million users, allows consumers to tweak the photos they take on their smartphones and share the images with their friends, a feature that Twitter has reportedly also begun to develop. Twitter’s executive chairman Jack Dorsey was an investor in Instagram and hoped to acquire it before Facebook CEO Mark Zuckerberg tabled a successful bid.

When Zuckerberg announced the acquisition in an April blog post, he said one of Instagram’s strengths was its inter-connectivity with other social networks and pledged to continue running it as an independent service.

“We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience,” Zuckerberg wrote. “We plan on keeping features like the ability to post to other social networks.”

A Twitter spokesman declined comment Wednesday, but a status message on Twitter’s website confirmed that users are “experiencing issues,” such as “cropped images” when viewing Instagram photos on Twitter.

Systrom noted that Instagram users will be able to “continue to be able to share to Twitter as they originally did before the Twitter Cards implementation.”

(Reporting By Alexei Oreskovic and Gerry Shih; Editing by Nick Zieminski)

Social Media News Headlines – Yahoo! News

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All About Bachelorette Ashley & J.P. Rosenbaum’s Wedding Rings!

Stylewatch
Style News Now

12/05/2012 at 09:00 AM ET

Courtesy Neil Lane (4); Victor Chavez/Getty

Neil Lane wants to make one thing clear about newlyweds Ashley Hebert and J.P. Rosenbaum: “Seriously, J.P. and Ashley are so in love,” the celebrity jeweler tells PEOPLE of the Bachelorette season 7 stars. “Say what you will about reality TV, this is real-life love and they’re in this forever!”

So what better way to celebrate such affection than with some serious wedding bling? “We wanted to do something very special for their bands and all of Ashley’s wedding jewelry,” says Lane, who also designed Hebert’s 3.5-carat, central cushion-cut engagement ring (above) for Rosenbaum’s May 2011 proposal. “All three of us worked together on the bands over the last month and for Ashley, we created a design for a handmade, platinum band with French-cut diamonds in the middle section bordered by round diamonds on the side (above).”

For his, “J.P. wanted something stylish and unusual but not too blingy,” Lane says. The upshot? A wide platinum band with a raised elliptical edge in the middle (above) “for a 3D [look].”

Courtesy Neil Lane (2)

Rounding out the couple’s wedding jewelry were 5-carat diamond-and-platinum cufflinks (above) for Rosenbaum (“J.P. wanted a little sparkle and glam on his cuff,” says Lane) and for Hebert, 10 carats of vintage, Indian-style drop earrings (above) and more than 30 carats in diamond bracelets (top).

“They loved the jewelry — and they really love each other,” says Lane, who first met the couple in Fiji toward the end of their season (see photo below). “When I first got to know them in Fiji, I knew they were going to last. They were so affectionate and then when I’ve seen them since it was clear they were a very true, inseparable couple ready to go on life’s journey together. It’s like they have goo-goo eyes for each other! They’re love-struck!” Tell us: Are you a fan of Ashley and J.P.’s gems?

Courtesy Neil Lane

–Elizabeth Leonard

HAVE AN AMAZING ENGAGEMENT RING OF YOUR OWN? SHOW US HERE!

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Longer tamoxifen use cuts breast cancer deaths

Breast cancer patients taking the drug tamoxifen can cut their chances of having the disease come back or kill them if they stay on the pills for 10 years instead of five years as doctors recommend now, a major study finds.

The results could change treatment, especially for younger women. The findings are a surprise because earlier research suggested that taking the hormone-blocking drug for longer than five years didn't help and might even be harmful.

In the new study, researchers found that women who took tamoxifen for 10 years lowered their risk of a recurrence by 25 percent and of dying of breast cancer by 29 percent compared to those who took the pills for just five years.

In absolute terms, continuing on tamoxifen kept three additional women out of every 100 from dying of breast cancer within five to 14 years from when their disease was diagnosed. When added to the benefit from the first five years of use, a decade of tamoxifen can cut breast cancer mortality in half during the second decade after diagnosis, researchers estimate.

Some women balk at taking a preventive drug for so long, but for those at high risk of a recurrence, "this will be a convincer that they should continue," said Dr. Peter Ravdin, director of the breast cancer program at the UT Health Science Center in San Antonio.

He reviewed results of the study, which was being presented Wednesday at a breast cancer conference in San Antonio and published by the British medical journal Lancet.

"The result of this trial will have a major, immediate impact on premenopausal women," Ravdin said.

About 50,000 of the roughly 230,000 new cases of breast cancer in the United States each year occur in women before menopause. Most breast cancers are fueled by estrogen, and hormone blockers are known to cut the risk of recurrence in such cases.

Tamoxifen long was the top choice, but newer drugs called aromatase inhibitors — sold as Arimidex, Femara, Aromasin and in generic form — do the job with less risk of causing uterine cancer and other problems.

But the newer drugs don't work well before menopause. Even some women past menopause choose tamoxifen over the newer drugs, which cost more and have different side effects such as joint pain, bone loss and sexual problems.

The new study aimed to see whether over a very long time, longer treatment with tamoxifen could help.

Dr. Christina Davies of the University of Oxford in England and other researchers assigned 6,846 women who already had taken tamoxifen for five years to either stay on it or take dummy pills for another five years.

Researchers saw little difference in the groups five to nine years after diagnosis. But beyond that time, 15 percent of women who had stopped taking tamoxifen after five years had died of breast cancer versus 12 percent of those who took it for 10 years. Cancer had returned in 25 percent of women on the shorter treatment versus 21 percent of those treated longer.

Tamoxifen had some troubling side effects: Longer use nearly doubled the risk of endometrial cancer. But it rarely proved fatal, and there was no increased risk among premenopausal women in the study — the very group tamoxifen helps most.

"Overall the benefits of extended tamoxifen seemed to outweigh the risks substantially," Dr. Trevor Powles of the Cancer Centre London wrote in an editorial published with the study.

The study was sponsored by cancer research organizations in Britain and Europe, the United States Army, and AstraZeneca PLC, which makes Nolvadex, a brand of tamoxifen, which also is sold as a generic for 10 to 50 cents a day. Brand-name versions of the newer hormone blockers, aromatase inhibitors, are $300 or more per month, but generics are available for much less.

The results pose a quandary for breast cancer patients past menopause and those who become menopausal because of their treatment — the vast majority of cases. Previous studies found that starting on one of the newer hormone blockers led to fewer relapses than initial treatment with tamoxifen did.

Another study found that switching to one of the new drugs after five years of tamoxifen cut the risk of breast cancer recurrence nearly in half — more than what was seen in the new study of 10 years of tamoxifen.

"For postmenopausal women, the data still remain much stronger at this point for a switch to an aromatase inhibitor," said that study's leader, Dr. Paul Goss of Massachusetts General Hospital. He has been a paid speaker for a company that makes one of those drugs.

Women in his study have not been followed long enough to see whether switching cuts deaths from breast cancer, as 10 years of tamoxifen did. Results are expected in about a year.

The cancer conference is sponsored by the American Association for Cancer Research, Baylor College of Medicine and the UT Health Science Center.

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Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Dow, S&P rebound on banks, but Nasdaq sours with Apple

NEW YORK (Reuters) - Stocks mostly rose on Wednesday, boosted by a rally in bank shares, though a steep drop in Apple limited the advance and kept the Nasdaq in negative territory.

Trading was volatile, with the S&P 500 dropping into negative territory at one point and the Nasdaq falling more than 1 percent before rebounding. The Dow, which doesn't contain Apple Inc as a component, climbed 1 percent by midday.

Apple, the largest U.S. company by market capitalization and a big weight in both the S&P 500 and the Nasdaq, fell 4.7 percent to $548.88. Apple is down more than 22 percent from an all-time high reached in late September.

The S&P 500 reversed course after briefly falling below the 1,400 level, seen as a key support point over the past two weeks.

"There's still psychological interest in buying the market," said John Brady, managing director at R.J. O'Brien & Associates in Chicago. At the 1,400 level, "we find again ‘dip buyers' there. They strongly believe a deal (on the fiscal cliff) is going to get done."

For several weeks, investors have reacted quickly to whiffs of sentiment from Washington in headlines about negotiations between the White House and congressional leaders over a deal on how to avoid the "fiscal cliff" - a series of mandatory spending cuts and tax increases effective in early January that could push the U.S. economy into recession next year.

President Barack Obama told the Business Roundtable, a group of chief executives, on Wednesday that a fiscal cliff deal was possible "in about a week" if Republicans acknowledged the need to raise taxes on the wealthiest Americans.

The Dow Jones industrial average <.dji> was up 115.44 points, or 0.89 percent, at 13,067.22. The Standard & Poor's 500 Index <.spx> was up 5.71 points, or 0.41 percent, at 1,412.76. But the Nasdaq Composite Index <.ixic> was down 13.75 points, or 0.46 percent, at 2,982.94.

Apple's slide weighed heavily on the Nasdaq. Market participants cited a host of reasons for the drop in the iPad maker's stock, including a consultant's report about the company losing share in the tablet market and reports that margin requirements had been raised by at least one clearing firm.

Apple has "to hit another home run to get $700 again," said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago. "They need another new product that hits it out of the park. Without that, they could get a gradual grind-down in confidence ... this is not going to be a short-term trend."

On the upside, The Travelers Cos Inc rose 5.1 percent to $74.111 and ranked as the Dow's top gainer after the property and casualty insurance company said its preliminary estimate of net losses from Superstorm Sandy was about $650 million after tax.

Banks were also strong, with the S&P financial sector index <.gspf> climbing 1.5 percent. The rally was led by a 7.3 percent climb in Citigroup to $36.79 after the company said it would cut 4 percent of its workforce in a cost-cutting move. The KBW Bank Index <.bkx> rose 2 percent.

Bank of America shares shot up 6.1 percent to $10.51, just a touch off a new 52-week high at $10.52.

Freeport-McMoRan Copper & Gold Inc fell 15.2 percent to $32.47 as the S&P 500's biggest percentage decliner. The company said it was acquiring Plains Exploration & Production Co and McMoRan Exploration Co in two separate deals for $9 billion in cash and stock in a major expansion into energy.

McMoRan Exploration soared 83.6 percent to $15.53 and Plains Exploration & Production surged 24.4 percent to $44.83.

Economic data from payrolls processor ADP showed U.S. private-sector hiring took a hit in November due to the impact of Superstorm Sandy, which ravaged consumers and businesses in the Northeastern United States, but the huge services sector kept expanding albeit at a modest pace, according to the Institute for Supply Management.

(Additional reporting by Rodrigo Campos; Editing by Jan Paschal)

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U.S. Navy Denies Iranian Claim to Have Captured Drone

TEHRAN — Iran’s Revolutionary Guards Corps naval forces have captured an American drone that it said entered Iranian airspace over the Persian Gulf, state television reported on Tuesday. The claim was quickly denied by the United States Navy.

Iranian state media said the aircraft was a ScanEagle built by Boeing, which, according to the company’s Web site, can be launched and operated from ships.

A spokesman for the United States Navy in Bahrain denied the Iranian claim, saying that no American drones were missing.

“The U.S. Navy has fully accounted for all unmanned air vehicles operating in the Middle East region,” a spokesman for the United States Naval Forces Central Command in Bahrain told Reuters. “Our operations in the gulf are confined to internationally recognized water and airspace. We have no record that we have lost any ScanEagles recently.”

However, the drone could have been one used by the Central Intelligence Agency, or even the National Security Agency, which both have eyes on Iran. Several kingdoms of the Persian Gulf also have ScanEagle drones.

If the seizure is confirmed, it would indicate a spike in tension between the United States and Iran in the skies over the gulf. On Nov. 8, Pentagon officials said Iranian warplanes had fired at a Predator drone flying over the gulf the previous week. It was believed to be the first incident in which Iranian warplanes had fired on an American drone, they said.

State television showed images of what seemed to be an intact ScanEagle being inspected by Rear Adm. Ali Fadavi, the commander of the Revolutionary Guards’ naval forces. The drone was displayed in front of a large map of the Persian Gulf with a text in English and Persian saying, “We shall trample on the U.S..”

Without mentioning the drone claim, President Mahmoud Ahmadinejad on Tuesday warned Iran’s adversaries against aggression. “Our enemies should open their eyes,” he said in a speech. “They may be able to take a few steps forward, but in the end we will make them retreat behind their own border.”

Iran’s foreign minister, Ali Akbar Salehi, told state television on Tuesday that the country planned to use the capture of the drone as evidence against the United States in international organizations.

“We had announced to the Americans that according to international conventions, we would not allow them to invade our territories, but unfortunately they did not comply,” Mr. Salehi said. “We had objected to the Americans before, but they claimed they were not present in our territories. We will use this drone as evidence to pursue a legal case against American invasion in international forums.” Admiral Fadavi said his forces had “hunted down” the ScanEagle over the gulf after it violated Iranian airspace and had forced it to land electronically, the semiofficial Fars news agency reported. A state television commentator said the drone was on a spy mission.

A September report by the Government Accountability Office on unmanned aircraft systems warned that some drones were sensitive to jamming and spoofing. In a spoofing operation, an unencrypted GPS signal can be taken over by enemy forces, the report warns, effectively hijacking the drone.

A former member of Iran’s Foreign Policy and National Security Commission said the seizure of the drone illustrated Iran’s growing military powers and showed that the United States was not really interested in mending relations with Tehran.

“How can we trust President Obama for talks if he sends his drones into our airspace?” the former commission member, Heshmatollah Falahatpisheh, said in an interview. “This move is counterproductive for any détente.”

Iran’s Parliament, which always cheers on any success by the Revolutionary Guards, invited top commanders to present details of the capture to lawmakers.

“The hunting and capturing of this American drone once again showed off the defensive and repelling strengths of the Islamic republic to the world,” Ebrahim Aghamohammadi, a member of Parliament, told Fars. “We are moving forward with dominance.”

In the Nov. 1 attack on the Predator, American officials maintained that the drone had been over international waters, while Iranian commanders insisted that it had violated Iranian airspace. Sea and air borders in the region are strongly contested. Iranian naval forces in small speedboats and United States warships monitor the sea lanes, through which nearly 30 percent of the world’s oil is transported.

Last month, Iran complained to the United Nations over at least eight violations of its airspace by American planes.

Iran’s latest claim came 12 months after Iran said it had brought down an RQ-170 Sentinel operated by the C.I.A. At the time, Iranian state television showed images of the bat-winged drone — apparently fully intact — that Iran had nicknamed “the beast of Kandahar,” a reference to a drone base in Afghanistan.

Iran has maintained that it hacked into the RQ-170’s controls and forced it to land. But American officials said it had crashed in Iranian territory.

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