IHT Rendezvous: The Clinton Doctrine of American Foreign Policy

The partisan political theater, of course, was top-notch. Sen. Rand Paul’s declaration that he would have fired Hillary Rodham Clinton; her angry rebuttal of Sen. Ron Johnson’s insistence that the Obama administration misled the American people about the Benghazi attack; Sen. John McCain’s continued outrage at the slapdash security the State Department provided its employees.

Beneath the posturing, though, ran larger questions: what strategy does the United States have to counter the militant groups running rampant across North and West Africa? And what kind of secretary of state has Ms. Clinton been? In her last Congressional hearing in that position, Ms. Clinton expressed exasperation with Washington’s political trench warfare.

“We’ve got to get our act together,” she said.

Ms. Clinton has been a very good but very cautious secretary of state, many analysts say – one who, for the most part, kept her distance from Afghanistan, Israel-Palestine and other seemingly intractable conflicts.

One State Department official, while praising Ms. Clinton’s tenure, nonetheless looked forward to the arrival of Sen. John Kerry, her designated successor: “I came to admire Clinton as secretary of state, her focus on women and innovation in particular,” the official told me. “But am really happy to have someone in the job who does not retain political ambitions.”

In a recent assessment of Clinton’s tenure, Michael O’Hanlon of the Brookings Institution argued that she had enjoyed some success, including restoring the United States’ image abroad, but she made no historic breakthroughs, he said.

Mr. O’Hanlon argued that Ms. Clinton’s famed work ethic paid off. She made few mistakes, no major gaffes and did not “needlessly antagonize” friends or enemies. O’Hanlon called Ms. Clinton’s role in the administration’s “pivot to Asia” and tough stance toward China arguably “her greatest and most memorable contribution.”

The problem, as last week’s hearing showed, is that the Middle East and the threat of terrorism continue to dominate American foreign policy. Even as the United States becomes more energy independent, terrorist attacks like the kidnappings in a remote oil facility in Algeria will make headlines and influence markets. And barring a massive shift in American domestic politics, Israel’s security will continue to be viewed as a vital interest of the United States.

Ms. Clinton, to her credit, made forty trips to Europe that helped produce crippling new sanctions on Iran. Last fall, she helped broker a ceasefire between Israel and Hamas in Gaza. But she failed to personally engage in Israeli-Palestinian peace talks.

To be fair, the Obama White House may have limited her options. After promising more open debate than occurred under President George W. Bush, the Obama White House tightly controlled the formulation of American foreign policy. Critics have also accused Mr. Obama of being overly cautious in foreign affairs.

With the exception of the Libya intervention and the raid that killed Osama bin Laden, Mr. Obama was “coolly calculating and reluctant to engage” in his first-term foreign policy, The Economist magazine recently argued.

Mr. Obama, of course, is trying to avoid the over-reach his predecessor displayed in Iraq. He also faces enormous fiscal pressures at home. But there is a risk that the pendulum is swinging too far toward a smug isolationism in Washington.

As Ms. Clinton departs, worrying trends are emerging in the way America engages with the world. The new U.S. weapon of choice is the drone strike – a tactic that carries zero political risk at home but spreads anti-Americanism abroad.

Complex foreign policy problems that threaten American security are increasingly seen as “entanglements” best avoided. And there is a convenient view that there are no “good guys” in the power struggles now unfolding in the post-Arab-Spring Middle East.

The potential lesson of the bruising political battle over Benghazi is simple: Take few risks, turn embassies into bunkers and avoid political firestorms at home. In her testimony, Ms. Clinton passionately argued against that approach.

Declaring Somalia and Colombia success stories, she said the United States could counter militancy in Africa and the Middle East by working with regional organizations and training local security forces. U.S. funding and training of an African Union Mission in Somalia, or AMISOM, Ms. Clinton said, had slowly succeeded in driving back al-Shabaab and other Islamist forces. In Colombia, the government has driven back FARC rebels and narco-traffickers.

There have been setbacks and the efforts in both countries are imperfect. But local security forces trained and funded by the international community slowly gained ground in painstaking efforts over many years.

“What we have to do is recognize that we’re in for a long-term struggle here,” Ms. Clinton said at the hearing. “And that means we’ve got to pay attention to places that historically we have not chosen to or had to.”

During their heated exchange, Mr. McCain criticized Ms. Clinton and the Obama administration for not doing enough to train Libya’s security forces. Secretary Clinton replied that House Republicans had put a hold on the funding the administration requested to train Libyans.

“If this is a priority and we are serious about trying to help this government stand up security forces,” she said, “then we have to work together.”

Ms. Clinton is right. And so is Mr. McCain. Congressional politicking hinders the State Department. And the State Department executed terribly in Benghazi. But Ms. Clinton, who I have criticized in the past, won the day.

“We are in a new reality,” she said, referring to the change sweeping across the Middle East. “We are trying to makes sense of events that nobody had predicted but that we’re going to have to live with.”

Ms. Clinton called for the United States to show “humility” abroad and stop making national security issues “political footballs” at home. She said a Cold War style bipartisan agreement should be reached to launch a long-term American effort to strengthen local security forces and promote democracy across Africa and the post-Arab-Spring Middle East.

“Let’s be smart and learn from what we’ve done in the past,” she said. “Put forth a policy that wouldn’t go lurching from administration to administration but would be a steady one.”

“We have more assets than anyone in the world,” Ms. Clinton added, “but I think we’ve gotten a little bit off track in trying to figure out how best to utilize them.”

A “little bit off track” is a euphemism for partisanship endangering national security. If the U.S. doesn’t get its act together, expect more Benghazis.

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SAG Awards: Watch Live with PEOPLE









01/27/2013 at 09:30 AM EST



Happy Screen Actors Guild Awards!

On a night when the biggest stars of TV and film honor each other, we will be covering every inch of the red carpet beginning at 6 p.m. ET (3 p.m. PT) on our live pre-show, hosted by PEOPLE's Deputy Managing Editor Peter Castro and PEOPLE StyleWatch Managing Editor Susan Kaufman, right here on PEOPLE.com.

Join our @StyleWatchMag and @peoplemag Twitter party on Sunday to discuss the best dresses, the hottest hair and makeup and the most eye-popping jewels that nominees like Claire Danes, Jessica Chastain and Jennifer Lawrence will be wearing. Just use hashtag #PeopleSAG and your comments could appear on PEOPLE.com.

Once the show starts at 8 p.m. ET (5 p.m. PT), the fun continues as we track the winners, losers and best speeches of the night. PEOPLE editors and the stars, including Busy Phillips, will be Tweeting commentary, exclusive photos, behind-the-scenes tidbits and more on one of Hollywood's most heartfelt nights.

The 19th Annual Screen Actors Guild Awards will air live on TNT and TBS on Sunday, Jan. 27, at 8 p.m. ET (5 p.m. PT) from the Shrine Auditorium in Los Angeles. Be sure to join us!

Read More..

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/


Read More..

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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Notre Dame’s Te’o says had no part in forming hoax






Jan 24 (Reuters) – Notre Dame football player Manti Te‘o said he was the victim of an elaborate online hoax and denied in an interview broadcast on Thursday having had any part in the construction of the dramatic story of his dying girlfriend.


“No, I did not,” Te’o said in the interview with Katie Couric broadcast on the daytime talk show “Katie.” “I think what people don’t realize is that the same day that everybody else found out about this situation, I found out.”






The reported deaths of Te’o's grandmother and purported girlfriend, both on Sept. 12, and his response to the tragedies, were often repeated stories during Notre Dame‘s bid for a national championship last season. His grandmother did die that day.


Te’o, who was a finalist for college football’s highest individual honor for helping drive Notre Dame to an undefeated regular season, admitted he maintained the public deception after he learned the truth that she had never existed, but he did not do so for personal gain.


Couric asked Te’o to respond to several theories people have raised since the hoax was revealed, including that he might be gay and created the relationship to hide his sexual orientation.


“No, far from it,” Te’o said when asked by Couric if he were gay. “Far from that.”


Te’o sat with his hands often clasped and responded in a soft tone to Couric‘s questions, telling her he did not know if the Lennay Kekua story had supported his Heisman trophy candidacy.


It was his first on-camera interview since sports blog Deadspin.com broke the story on Jan. 16 that Kekua did not exist. Couric also interviewed his parents, Brian and Ottilia Te‘o, who defended their son.


Notre Dame, one of the most powerful institutions in U.S. collegiate athletics, held a news conference within hours of the Deadspin.com story to say that Te’o had been duped.


Te’o had told sports network ESPN in an off-camera interview on Friday that an acquaintance, Ronaiah Tuiasosopo, had told him he was behind the hoax.


CONFESSED HOAX


Te’o said in the interview with Couric that Tuiasosopo, who he had spoken to twice before and had believed was Kekua‘s cousin, confessed the hoax to him on Jan. 16.


Te’o said he received a telephone call from the person claiming to be Kekua on Dec. 6 – two days before the Heisman presentation – and he wasn’t really certain she never existed until Tuiasosopo‘s confession to him.


“My whole reality was she was dead, and now all of the sudden she’s alive. At that time I didn’t know that it was just somebody’s prank.”


He went along with the Kekua story the day of the Heisman presentation, though he knew at a minimum that she was alive, and did not tell his parents until Christmas, he said.


“Part of me was saying that if you say she is alive what would everybody think? What are you going to tell everybody who follows you, who you inspire? What are you going to say? At that time, on Dec. 8, two days after I just found out she was alive, as a 21-year-old, I wasn’t ready for that.”


Te’o said he “wasn’t forthcoming” about the extent of his relationship with Kekua, that they had never met in person, but reporters did not ask him directly if they had met in person.


He said he was most sorry for having told his father he had seen Kekua in person when he was in Hawaii, a story that his father repeated to media when asked.


When asked why he wouldn’t simply want a girlfriend he could spend time with on campus, Te’o said he was drawn to Kekua because her background appeared similar to his own.


“What I went through was real,” Te’o said. “The feelings, the pain, the sorrow, that was all real. That is something I can’t fake.”


Te’o said he did not know how the hoax would affect his position in the National Football League draft.


“As far as my draft status, I hope and pray that good happens obviously, but as long as my family is OK, I can live with whatever happens,” he said. (Reporting by David Bailey; Editing by Cynthia Johnston and Tim Dobbyn)


Internet News Headlines – Yahoo! News





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Myanmar Military Said to Make Progress in Fight Against Rebels





BANGKOK — Myanmar government troops on Saturday captured a crucial hilltop position outside the headquarters of ethnic Kachin rebels, two observers of the fighting said, a significant advance in a long and bloody campaign near the border with China.




The intense fighting come amid increased foreign criticism of the campaign and heightened tensions between the Burmese ethnic majority and minority groups, who make up one third of the country’s population.


In comments that are likely to anger Myanmar’s minorities, the country’s opposition leader, Daw Aung San Suu Kyi, expressed admiration for the military during a visit to Hawaii, where among other activities she is giving a speech titled “Peace Takes Courage and Compassion.”


“I’ve often been criticized for saying that I’m fond of the Burmese army, but I can’t help it — it’s the truth,” Ms. Aung San Suu Kyi, whose father was the founder of the modern Burmese army, said on Friday at the East-West Center in Honolulu.


The comments by Ms. Aung San Suu Kyi, who won the Nobel Peace Prize in 1991, were made in the context of the military’s role in helping secure independence from Britain. But given the timing they are likely to further alienate ethnic minorities, who have criticized her for not speaking out forcefully against the Kachin campaign.


The Myanmar military ruled Myanmar for five decades, brutally suppressing dissent and jailing its opponents, including Ms. Aung San Suu Kyi. A civilian government took power in 2011.


National reconciliation between the Burmese majority and many ethnic groups is seen as a crucial component of Myanmar’s moves toward democracy under President Thein Sein.


The fighting in Kachin has displaced tens of thousands of civilians in wintry conditions.


The military’s capture of the hilltop position, Hkayabum, comes a week after the government, in an apparent attempt to allay criticism by foreign governments over the air and ground campaign, announced a cease-fire with the rebels.


That cease-fire never went into effect, independent observers say. Instead the Myanmar army continued an intensive artillery assault on rebel positions.


“It’s been a nonstop barrage,” said Ryan Roco, an American photographer documenting the fighting from the front lines. “It’s raining mortars.”


Khon Ja, a Kachin humanitarian worker, said it was possible that rebel forces would retake the hilltop position and described the fighting as “cat and mouse.”


A spokesman for the government, Ye Htut, said he was not aware whether Hkayabum had been taken but that government troops are “very close to the post and heavy fighting is ongoing.”


The Myanmar government has repeatedly said it was acting in self-defense against the Kachin Independence Army, the rebel group known by its acronym KIA.


A statement by the Myanmar foreign ministry published in state newspapers on Saturday said the rebels had “attacked military column with strong forces” immediately after the cease-fire was announced on Jan. 18 and that the military, or Tatmadaw, as it is known in Burmese, had no choice but to fight back.


“As KIA troops have constantly launched such terrorist attacks, the Tatmadaw had to take military actions just to protect and safeguard the peace and tranquillity of the community and for the prevalence of law and order,” the statement said.


Outside observers have challenged that view, saying the military has advanced their positions even as they claim to be acting in self-defense.


The United States embassy in Yangon said on Thursday that it was “deeply concerned” by what it called a continued offensive.


“The United States strongly opposes the ongoing fighting, which has resulted in civilian casualties and undermined efforts to advance national reconciliation,” the statement said.


Myanmar’s foreign ministry criticized the American statement, saying it was “endeavoring in good faith” to achieve a cease-fire.


In the same statement, the foreign ministry said it “strongly objects” to the use of the word “Burma” by the United States government. Using the country’s former name, it said, “may affect mutual respect, mutual understanding and cooperation which have recently been restored between the two countries.”


A military junta changed the country’s English name from Burma to Myanmar in 1989, soon after the bloody suppression of a popular uprising against military rule. The violent context of the name change made many foreign government reluctant to go along with it. But today most governments call the country Myanmar.


Wai Moe contributed reporting from Yangon.



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Waiter Michael Garcia Refuses to Serve Man Who Insulted Boy with Down Syndrome















01/26/2013 at 09:00 AM EST



Waiter Michael Garcia made his regular customer Kim Castillo feel like family last week at the Houston restaurant Laurenzo's Prime Rib.

Castillo was eating there with her husband and their 5-year-old son Milo when several waiters came by their table to chat. Milo, who has Down syndrome, has slightly delayed speech. He showed off some new words, while talking about his recent birthday.

The chatter apparently displeased a nearby customer, who, according to NBC affiliate KPRC-TV, said, "Special needs children need to be special somewhere else."

Once Garcia heard the man's comment, "My personal feelings took over, and I told him, 'I'm not going to be able to serve you, Sir,' " he told the news channel. "[I said], 'How could you say that? How could you say that about a beautiful 5-year-old angel?' "

Castillo, "impressed" with Garcia's actions, says the waiter "put [his] job on the line … to stand up for somebody else."

Calling the man who insulted her son, "ignorant," Castillo adds, "I know Michael [stood up for Milo] from his heart, and from reacting to the situation. I don't think he stopped and thought about what he was doing."

Following the incident, Castillo wrote a blog post defending her son.

"Was he loud? Maybe a little in the moment, but honestly, the adults at our table were three times louder than he was," she said. "If he had been obnoxious, which like any other 5-year-old he can be, I wouldn't have thought twice about the family asking to move."

Meanwhile the restaurant's Facebook page has lit up with praise for Garcia and the supportive staff there.

"I am a Father of a special needs child and I applaud you and your employee, Michael Garcia, for standing up to intolerance and helping to educate people who fear the most precious of all children, those with special needs and disabilities," read one post.

He added, "Although I am a resident of California, I work for a [company] headquartered in Texas and am there on occasion for business. I will be sure to drop by and say hello and thank you when in town!"

Read More..

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/


Read More..

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)



Read More..

IHT Rendezvous: France Is Sweet on 'Sugar Man'

A love story is developing between the French and Rodriguez, the Detroit-born musician who flopped in the 1970s, was a star without knowing it in apartheid South Africa and was rediscovered last summer in the United States when the documentary “Searching for Sugar Man” was released.

The film tells the extraordinary story of a talented and philosophical musician who spent his life working in construction while struggling to bring up his three daughters, and the mind-boggling mutual discoveries in 1997: for him, that he was more famous than the Rolling Stones in South Africa, and for South African fans (who believed him to be dead), that he was alive.

The Swedish-U.K. film by Malik Bendjelloul which has made more than $3 million at the box office in the United States, has been nominated for an Academy Award in the documentary category. In France the now-70-year-old Rodriguez has created something of a frenzy: the soundtrack album is among Sony France’s top sales on iTunes. Sony had planned on putting fewer than 3,000 CDs in stores, but after calls from vendors who sensed something was up, made 15,000 copies available.

“It is an honor and a pleasure,” said Rodriguez in an email message last week from Detroit about his popularity in France. “I’ve been to France a couple of times now. It feels like I’m on top of the world.”

The French public has had a tradition of adopting American artists that it considers underappreciated in the United States, from Josephine Baker to Woody Allen, from Paul Auster to Ben Harper. Le Figaro newspaper recently dubbed Rodriguez the “unloved” singer.

David Nivesse, from ARP Selection, the film’s French distributor, and Christophe Servel Molvaer, project manager for Sony Music Legacy, France, say that it all started last November when Rodriguez came to Paris for a private concert following a preview of the documentary.

“He played for half an hour and you could hear a pin drop. There were 600 people in the room and he got a standing ovation,” Mr. Servel Molvaer recalled. “I had never heard of him before. But from the beginning I was captivated by this soul-funk. It’s something magical, and people love his music from the moment they hear it.”

“Music is a language all it’s own,” wrote Rodriguez. “I’ve been playing ‘La Vie En Rose’ a lot lately when I’m looking for sounds. It’s the notes and the rhythms— that is what speaks to me. I’m a music lover. I do vocal against guitar. Sometimes it’s like any words will work. A lot of songs out there have fewer words than guttural sounds like oohs and ahhs and grunts. That works for some people too. I’m glad the French like my stuff. It’s had a long life and I feel lucky for that.”

“Searching for Sugar Man” was released Dec. 26 in just two Paris cinemas. It has beaten all records at the Left Bank Saint Germain movie theater where it is playing. It’s now playing in other cities in France including Bordeaux, Rennes and Nancy.

“We thought the film would do well but this is exceptional,” Mr. Nivesse said.

Rodriguez is playing concerts around the world now. One gig was scheduled for this June at La Cigale, a major Paris venue. It sold out within 72 hours. Another concert was added at the Zenith (capacity 6,500). He is also expected to play at the major French summer music festivals.

“I’ve been working 25 years in the business and never met anyone like this, with so much charisma, even though he doesn’t say much,” said Mr. Servel Molvaer.

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