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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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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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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Clashes erupt in Egypt despite proposal to end crisis

CAIRO (Reuters) - Islamists fought protesters outside the Egyptian president's palace on Wednesday, while inside the building his deputy proposed a way to end a crisis over a draft constitution that has split the most populous Arab nation.

Stones and petrol bombs flew between opposition protesters and supporters of President Mohamed Mursi who had flocked to the palace in response to a call from the Muslim Brotherhood.

Two Islamists were hit in the legs by what their friends said were bullets fired during the clashes in streets around the compound in northern Cairo. One of them was bleeding heavily.

A leftist group said Islamists had cut off the ear of one of its members. Medical sources said 23 people had been wounded in clashes.

Riot police deployed between the two sides to try to stop the confrontations which flared after dark despite an attempt by Vice President Mahmoud Mekky to calm the political crisis.

He said amendments to disputed articles in the draft constitution could be agreed with the opposition. A written agreement could then be submitted to the next parliament, to be elected after a referendum on the constitution on December 15.

"There must be consensus," he told a news conference, saying opposition demands had to be respected to reach a solution.

Facing the gravest crisis of his six-month-old tenure, Mursi has shown no sign of buckling, confident that Islamists can win the referendum and a parliamentary election to follow.

Many Egyptians yearn for an end to political upheaval that has scared off investors and tourists, damaging the economy.

Egypt's opposition coalition blamed Mursi for the violence around his palace and said it was ready for dialogue if the Islamist leader scrapped a decree he issued on November 22 that gave him wide powers and shielded his decisions from judicial review.

"We hold President Mursi and his government completely responsible for the violence happening in Egypt today," opposition coordinator Mohamed ElBaradei told a news conference.

POLARISATION

"We are ready for dialogue if the constitutional decree is cancelled ... and the referendum on this constitution is postponed," he said of the document written by an Islamist-led assembly that the opposition says ignores its concerns.

"Today what is happening in the Egyptian street, polarisation and division, is something that could and is actually drawing us to violence and could draw us to something worse," the former head of the U.N. nuclear watchdog added.

Opposition leaders have previously urged Mursi to retract the November 22 decree, defer the referendum and agree to revise the constitution, but have not echoed calls from street protesters for his overthrow and the "downfall of the regime".

Mursi has said his decree was needed to prevent courts still full of judges appointed by ousted strongman Hosni Mubarak from derailing a constitution vital for Egypt's political transition.

Rival groups skirmished outside the presidential palace earlier on Wednesday. Islamist supporters of Mursi tore down tents erected by leftist foes, who had begun a sit-in there.

"They hit us and destroyed our tents. Are you happy, Mursi? Aren't we Egyptians too?" asked protester Haitham Ahmed.

Mohamed Mohy, a pro-Mursi demonstrator who was filming the scene, said: "We are here to support our president and his decisions and save our country from traitors and agents."

Mekky said street mobilization by both sides posed a "real danger" to Egypt. "If we do not put a stop to this phenomenon right away ... where are we headed? We must calm down."

U.S. Secretary of State Hillary Clinton weighed into Egypt's political debate, saying dialogue was urgently needed on the new constitution, which should "respect the rights of all citizens".

DIALOGUE

Clinton and Mursi worked together last month to broker a truce between Israel and Hamas Islamists in the Gaza Strip.

"It needs to be a two-way dialogue ... among Egyptians themselves about the constitutional process and the substance of the constitution," Clinton told a news conference in Brussels.

Washington is worried about rising Islamist power in Egypt, a staunch U.S. security partner under Mubarak, who preserved the U.S.-brokered peace treaty Cairo signed with Israel in 1979.

The Muslim Brotherhood had summoned supporters to an open-ended demonstration at the presidential palace, a day after about 10,000 opposition protesters had encircled it for what organizers dubbed a "last warning" to Mursi.

"The people want the downfall of the regime," they chanted, roaring the signature slogan of last year's anti-Mubarak revolt.

The "last warning" may turn out to be one of the last gasps for a disparate opposition that has little chance of scuttling next week's vote on the draft constitution.

State institutions, with the partial exception of the judiciary, have mostly fallen in behind Mursi.

The army, the muscle behind all previous Egyptian presidents in the republic's six-decade history, has gone back to barracks, having apparently lost its appetite to intervene in politics.

In a bold move, Mursi sacked Mohamed Hussein Tantawi, the Mubarak-era army commander and defense minister, in August and removed the sweeping powers that the military council, which took over after Mubarak fell, had grabbed two months earlier.

The liberals, leftists, Christians, ex-Mubarak followers and others opposed to Mursi have yet to generate a mass movement or a grassroots political base to challenge the Brotherhood.

Investors have seized on hopes that Egypt's turbulent transition, which has buffeted the economy for two years, may soon head for calmer waters, sending stocks 1.6 percent higher after a 3.5 percent rally on Tuesday.

Egypt has turned to the IMF for a $4.8 billion loan after the depletion of its foreign currency reserves. The government said on Wednesday the process was on track and its request would go to the IMF board as expected.

The board is due to review the facility on December 19.

Elijah Zarwan, a fellow with the European Council on Foreign Relations, said that if Egypt was to find a compromise solution to its crisis, it would not be through slogans and blows.

"It will be through quiet negotiation, not through duelling press conferences, street brawls, or civil strife."

(Additional reporting by Tom Perry, Tamim Elyan and Edmund Blair; Writing by Alistair Lyon; Editing by Andrew Roche)

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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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NATO warns Syria not to use chemical weapons

BRUSSELS/BEIRUT (Reuters) - NATO told Syrian President Bashar al-Assad on Tuesday that any use of chemical weapons in his fight against encroaching rebel forces would be met by an immediate international response.

The warning from NATO Secretary-General Anders Fogh Rasmussen came as U.S. government sources said Washington had information that Syria was making what could be seen as preparations to use its chemical arsenal.

Syrian forces meanwhile bombarded rebel districts near Damascus in a sustained counter-attack to stem rebel gains around Assad's power base as the insurgency may be entering a decisive phase.

International concern over Syria's intentions has been heightened by reports that its chemical weapons have been moved and could be prepared for use.

"The possible use of chemical weapons would be completely unacceptable for the whole international community and if anybody resorts to these terrible weapons I would expect an immediate reaction from the international community," Rasmussen told reporters at the start of a meeting of alliance foreign ministers in Brussels.

The chemical threat made it urgent for the alliance to send Patriot anti-missile missiles to Turkey, Rasmussen said.

The French Foreign Ministry referred to "possible movements on military bases storing chemical weapons in Syria" and said the international community would react if they were used.

Britain has told the Syrian government that any use of chemical weapons would have "serious consequences", Foreign Secretary William Hague said.

U.S. President Barack Obama on Monday told Assad not to use chemical weapons, without saying how the United States might respond. The Foreign Ministry in Damascus said it would never use such weapons against Syrians.

CLASSIFIED INTELLIGENCE

The U.S. has collected what has been described as highly classified intelligence information demonstrating that Syria is making what could be construed as preparations to use elements of its extensive chemical weapons arsenal, two U.S. government sources briefed on the issue said.

One of the sources said that there was no question that the US "Intelligence community" had received information pointing to "preparations" under way in Syria related to chemical weapons. The source declined to specify what kind of preparations had been reported, or how close the intelligence indicated the Syrians were to deploying or even using the weapons.

Western military experts say Syria has four suspected chemical weapons sites, and it can produce chemical weapons agents including mustard gas and sarin, and possibly also VX nerve agent. The CIA has estimated that Syria possesses several hundred liters of chemical weapons and produces hundreds of tonnes of agents annually.

The fighting around Damascus has led foreign airlines to suspend flights and prompted the United Nations and European Union to reduce their presence in the capital, adding to a sense that the fight is closing in.

The army fightback came a day after the Syrian foreign ministry spokesman was reported to have defected in a potentially embarrassing blow to the government.

The Syrian Observatory for Human Rights said 200 people were killed across Syria on Monday, more than 60 of them around Damascus. Assad's forces bombarded districts to the south-east of the capital on Tuesday, near to the international airport, and in the rebel bastion of Daraya to the south-west.

Opposition footage posted on the Internet showed a multiple rocket launcher fire 20 rockets, which activists said was filmed at the Mezze military airport in Damascus.

Reuters could not independently verify the footage due to the government's severe reporting restrictions.

In central Damascus, shielded for many months from the full force of a civil war in which 40,000 people have been killed, one resident reported hearing several loud explosions.

"I have heard four or five thunderous blows. It could be barrel bombs," she said, referring to makeshift bombs which activists say Assad's forces have dropped from helicopters on rebel-dominated areas.

MORTAR ATTACK

The state news agency said that 28 students and a teacher were killed near the capital when rebels fired a mortar bomb on a school. Rebels have targeted government-held residential districts of the capital.

The mainly Sunni Muslim rebel forces have made advances in recent weeks, seizing military bases, including some close to Damascus, from forces loyal to Assad, who is from Syria's Alawite minority linked to Shi'ite Islam.

Faced with creeping rebel gains across the north and east of the country, and the growing challenge around the capital, Assad has increasingly resorted to air strikes against the insurgents.

A diplomat in the Middle East said Syrian Foreign Ministry spokesman Jihad Makdissi had left the country and defected, while the British-based Observatory said it had information that he flew from Beirut on Monday afternoon heading for London.

In Beirut, a diplomat said Lebanese officials had confirmed that Makdissi spent several days in Beirut before leaving on Monday, but could not confirm his destination.

"We're aware of reports that he has defected and may be coming to the UK. We're seeking clarification," a Foreign Office spokeswoman in London said.

Makdissi was the public face to the outside world of Assad's government as it battled the 20-month-old uprising. But he had barely appeared in public for several weeks before Monday's report of his defection.

He had little influence in a system largely run by the security apparatus and the military. But Assad's opponents will see the loss of such a high profile figure, if confirmed, as further evidence of a system crumbling from within.

The United Nations and European Union both said they were reducing their presence in Syria in response to the escalated violence around the capital.

A spokesman for U.N. humanitarian operations said the move would not stop aid deliveries to areas which remained accessible to relief convoys.

"U.N.-funded aid supplies delivered through SARC (Syrian Arab Red Crescent) and other charities are still moving daily where the roads are open," Jens Laerke told Reuters in Geneva.

"We have not suspended our operation, we are reducing the non-essential international staff."

Three remaining international staff at the European Union delegation, who stayed on in Damascus after the departure of most Western envoys, crossed the border into Lebanon on Tuesday after pulling out of the Syrian capital.

(Additional reporting by David Brunnstrom in Brussels, Khaled Yacoub Oweis in Cairo, Erika Solomon, Oliver Holmes and Ayat Basma in Beirut, Mark Hosenball, Mohammed Abbas and David Cutler in London, and Stephanie Nebehay in Geneva; Editing by Giles Elgood)

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Anderson Cooper Is Temporarily Blinded

TV Watch

By Julia Haskins

12/04/2012 at 02:30 PM EST

Anderson Cooper can see once again after a temporary – and painful – bout of blindness.

Cooper posted a picture of himself on Instagram Tuesday sporting a white gauze patch over his right eye. "Temporarily blinded last week while on assignment," he said. "UV light bouncing off water. Much better now. Details today on #andersonlive."

On Anderson Cooper Live, he explained how he went blind over the weekend while filming a story for 60 Minutes on the coast of Portugal.

"I wake up in the middle of the night and it feels like my eyes are on fire," he said. "It turns out I have sunburned my eyeballs and I go blind. I went blind for 36 hours. I took this picture of me after I went to the hospital."

He then showed his audience his photo and joked, "That's my new Match.com profile picture, by the way."

But the potential damage he faced is no laughing matter, and Cooper had NBC's chief medical editor, Dr. Nancy Snyderman, on to warn viewers about eye protection.

Snyderman said that the light reflected off the water burned his retinas, but that the hospital visit could have easily been avoided.

"It's a reminder that frankly everyone needs sunglasses," she advised. And to Cooper, she added, "Fortunately for you you're going to be fine, but it's a real reminder."

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