Wall Street bounces back on hope for "cliff' solution

NEW YORK (Reuters) - U.S. stocks rebounded from early losses on Thursday after Republican House Speaker John Boehner said he would keep working on a solution to the "fiscal cliff" while also slamming President Barack Obama's approach to budget talks.


NYSE Euronext was the S&P 500's biggest gainer, surging 34 percent to $32.25 after IntercontinentalExchange Inc said it would buy the operator of the New York Stock Exchange for $8.2 billion.


ICE shares shot up 1.4 percent to $130.10.


Republicans in the U.S. House of Representatives pushed ahead with their own plan to avoid a series of steep tax hikes and spending cuts due in early 2013, complicating negotiations with the White House. Obama has vowed to veto the plan.


Investors have hoped for an agreement soon between policymakers, but progress has been slow. Boehner said he expected to continue to work with Obama, but repeated his charge that the president and Senate Democrats were trying to "slow walk" the country over the fiscal cliff.


"Speaker Boehner went on the air and basically told us he doesn't like what the president's doing or not doing, and the markets rallied on that, which was kind of weird," said Stephen Guilfoyle, a trader at Meridian Equity Partners, in New York.


The Dow Jones industrial average <.dji> gained 59.75 points, or 0.45 percent, to 13,311.72 at the close. The S&P 500 <.spx> rose 7.88 points, or 0.55 percent, to 1,443.69. The Nasdaq Composite <.ixic> climbed 6.02 points, or 0.20 percent, to 3,050.39.


Stocks rallied earlier in the week on signs of progress in the fiscal cliff negotiations. But with the S&P 500 up 14.8 percent so far this year, investors are taking the opportunity to engage in some hedging as 2012 comes to a close.


Herbalife lost 9.6 percent to $33.74 following news that hedge fund manager Bill Ackman was betting against the company as part of his big end-of-the-year short.


The S&P Financial Index <.gspf> gained 1.4 percent.


The U.S. economy grew 3.1 percent in the third quarter, faster than previously estimated, while the number of Americans filing new claims for jobless benefits rose more than expected in the latest week.


Existing home sales jumped 5.9 percent in November, more than expected, and by the fastest monthly pace in three years. An index of housing shares <.hgx> gained 0.78 percent.


But KB Home slid 6.4 percent to $15.60 as the company reported higher homebuilding costs and expenses in the fourth quarter.


About 6.4 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, roughly in line with the daily average so far this year of about 6.46 billion shares.


On the NYSE, advancers outnumbered decliners by a ratio of about 2 to 1. On the Nasdaq, five stocks rose for every three that fell.


(Additional reporting by Ryan Vlastelica and Leah Schnurr; Editing by Jan Paschal)



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Army Seeks Death Penalty for Bales in Afghan Massacre





SEATTLE — The United States Army will seek the death penalty against Staff Sgt. Robert Bales, who is accused of killing 16 civilians in Afghanistan, officials said on Wednesday.




Sergeant Bales’s court-martial will consider 16 counts of premeditated murder, six counts of attempted murder and seven counts of assault, among other charges, but no trial date was set.


The Army has charged that Sergeant Bales, 39, who was serving his fourth combat tour, walked away from a remote outpost in southern Afghanistan and shot and stabbed members of several families in an ambush in two villages in the early morning hours of March 11. At least nine of the people he is accused of killing were children.


Prosecutors at a week of pretrial hearings in early November at Joint Base Lewis-McChord, where Sergeant Bales was stationed, suggested that he had acted in deliberate fury, perhaps in revenge for a fellow soldier who had lost a leg in a bomb attack. Defense lawyers said evidence presented in the hearing about Sergeant Bales’s use of alcohol, steroids and sleeping aids complicated the picture of his mental state.


Sergeant Bales’s lead lawyer, John Henry Browne, called the Army’s decision to move ahead on what appears to be a fast track of prosecution “understandable but totally irresponsible.”


“The Army is trying to take the focus off the failures of the Army, which are substantial,” Mr. Browne said in a telephone interview on Wednesday. He said that Sergeant Bales, who has pleaded not guilty, had post-traumatic stress and a concussive head injury, but that the Army sent him anyway “to one of the more intense battlegrounds of Afghanistan, on his fourth deployment."


For both sides the legal path ahead promises to be long and winding.


Since the system for military prosecutions in capital cases was revised in 1984, 16 men have been sentenced to death and five are on death row. Nine of those sentences were set aside on appeal and two were commuted to life in confinement.


The rules require the president to approve any death sentence, and that has happened only once in any of the 16 cases, in 2008, under President George W. Bush. That case was then tied up in appeals. No military death sentence has been carried out since 1961.


For capital punishment to be imposed, the Army said in a statement, the court-martial panel must unanimously find Sergeant Bales guilty, with at least one aggravating factor that “substantially” outweighs any extenuating or mitigating circumstances.


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Harley Pasternak's Holiday Diet Survival Guide






Celebrity Blog










12/19/2012 at 04:30 PM EST







Harley Pasternak


Courtesy Harley Pasternak


Celebrity trainer and PEOPLE.com blogger Harley Pasternak shares six easy tips for enjoying party snacks without packing on the pounds.

When it comes to the holiday season, my clients are often stressed out about how to maintain their diets in the face of such delicious temptations as cookies, pie and cocktails at parties and family gatherings.

But these treats are part of what make this time of year so fun, so don't ruin the time off for yourself by guilting yourself over every bite. The holidays are a time to enjoy the company of friends and family, so go ahead! Eat, drink, and be merry – just don't overdo it!

Here are my favorite tips that I arm my clients with when they head off into the holiday season:

1. Never Show Up Hungry!

One of the most common mistakes people make is starving themselves all day and "saving their calories" for a big dinner and dessert. This can backfire on you in a number of important ways. If you arrive starving, you're going to eat whatever's in sight. Eating small, frequent meals throughout the day helps you avoid showing up ravenous and actually speeds up your metabolism.

 

2. Our Eyes are Bigger than Our Stomachs

Studies show that the larger the plate or bowl we use, the more we eat. Using a smaller plate, like a salad plate, for dinner will really help you be aware of your portion sizes and help you eat less as a result.

 

3. Go Easy on the Alcohol

I'm not being a total Scrooge and saying you can't have a drink or two, I'm just suggesting that you be careful. Not only are alcoholic drinks loaded with calories that don't fill us up (and I mean loaded – 1 cup of eggnog can have 350 calories and 19 grams of fat!), but they also lower our inhibitions, which can lead to mindless eating. Good alternatives to traditional egg nog are Silk's Soymilk Nog (180 calories and 4g of fat per cup), or Vitasoy's Holly Nog (120 calories and 2g of fat).

 

4. Be Selective with the Sweets

When it comes to the dessert table, stick to your favorites. Don't waste calories on those pecan sandies that you only sort-of like. Try to really savor each bite of the ones you pick.

5. Out of Sight, Out of Mind

Instead of standing by the table where all the treats are laid out, hang out in another room or farther away from the temptation. Better yet, bring the treats out for dessert only and then put them away. If they're not sitting out, you're less likely to mindlessly graze all night.

 

6. Keep moving

Stay active during the holidays. Take a walk with your family to see the neighbors' decorations, or take a brisk walk around the block with your friends. Walking after a meal can burn calories and even aid in digestion. Don't, however, fall for the “I'll exercise it off later” routine. Going for a run today does not compensate for the three extra helpings you ate yesterday. In fact, sudden bouts of activity to compensate for extra calorie intake can actually increase your hunger while increasing your likelihood for injury.
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Experts: Kids are resilient in coping with trauma


WASHINGTON (AP) — They might not want to talk about the gunshots or the screams. But their toys might start getting into imaginary shootouts.


Last week's school shooting in Connecticut raises the question: What will be the psychological fallout for the children who survived?


For people of any age, regaining a sense of security after surviving violence can take a long time. They're at risk for lingering anxiety, depression, post-traumatic stress disorder.


But after the grief and fear fades, psychiatrists say most of Newtown's young survivors probably will cope without long-term emotional problems.


"Kids do tend to be highly resilient," said Dr. Matthew Biel, chief of child and adolescent psychiatry at MedStar Georgetown University Hospital.


And one way that younger children try to make sense of trauma is through play. Youngsters may pull out action figures or stuffed animals and re-enact what they witnessed, perhaps multiple times.


"That's the way they gain mastery over a situation that's overwhelming," Biel explained, saying it becomes a concern only if the child is clearly distressed while playing.


Nor is it unusual for children to chase each other playing cops-and-robbers, but now parents might see some also pretending they're dead, added Dr. Melissa Brymer of the UCLA-Duke National Center for Child Traumatic Stress.


Among the challenges will be spotting which children are struggling enough that they may need professional help.


Newtown's tragedy is particularly heart-wrenching because of what such young children grappled with — like the six first-graders who apparently had to run past their teacher's body to escape to safety.


There's little scientific research specifically on PTSD, post-traumatic stress disorder, in children exposed to a burst of violence, and even less to tell if a younger child will have a harder time healing than an older one.


Overall, scientists say studies of natural disasters and wars suggest most children eventually recover from traumatic experiences while a smaller proportion develop long-term disorders such as PTSD. Brymer says in her studies of school shootings, that fraction can range from 10 percent to a quarter of survivors, depending on what they actually experienced. A broader 2007 study found 13 percent of U.S. children exposed to different types of trauma reported some symptoms of PTSD, although less than 1 percent had enough for an official diagnosis.


Violence isn't all that rare in childhood. In many parts of the world — and in inner-city neighborhoods in the U.S., too — children witness it repeatedly. They don't become inured to it, Biel said, and more exposure means a greater chance of lasting psychological harm.


In Newtown, most at risk for longer-term problems are those who saw someone killed, said Dr. Carol North of the University of Texas Southwestern Medical Center, who has researched survivors of mass shootings.


Friday's shootings were mostly in two classrooms of Sandy Hook Elementary School, which has about 450 students through fourth-grade.


But those who weren't as close to the danger may be at extra risk, too, if this wasn't their first trauma or they already had problems such as anxiety disorders that increase their vulnerability, she said.


Right after a traumatic event, it's normal to have nightmares or trouble sleeping, to stick close to loved ones, and to be nervous or moody, Biel said.


To help, parents will have to follow their child's lead. Grilling a child about a traumatic experience isn't good, he stressed. Some children will ask a lot of questions, seeking reassurance, he said. Others will be quiet, thinking about the experience and maybe drawing or writing about it, or acting it out at playtime. Younger children may regress, becoming clingy or having tantrums.


Before second grade, their brains also are at a developmental stage some refer to as magical thinking, when it's difficult to distinguish reality and fantasy. Parents may have to help them understand that a friend who died isn't in pain or lonely but also isn't coming back, Brymer said.


When problem behaviors or signs of distress continue for several weeks, Brymer says it's time for an evaluation by a counselor or pediatrician.


Besides a supportive family, what helps? North advises getting children back into routines, together with their friends, and easing them back into a school setting. Studies of survivors of the Sept. 11 terrorist attacks found "the power of the support of the people who went through it with you is huge," she said.


Children as young as first-graders can benefit from cognitive-behavioral therapy, Georgetown's Biel said. They can calm themselves with breathing techniques. They also can learn to identify and label their feelings — anger, frustration, worry — and how to balance, say, a worried thought with a brave one.


Finally, avoid watching TV coverage of the shooting, as children may think it's happening all over again, Biel added. He found that children who watched the 9/11 clips of planes hitting the World Trade Center thought they were seeing dozens of separate attacks.


___


EDITOR'S NOTE — Lauran Neergaard covers health and medical issues for The Associated Press in Washington.


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Wall Street falls as "cliff" talks sour, but hopes remain

NEW YORK (Reuters) - U.S. stocks sold off late in the day to close at session lows on Wednesday as talks to avert a year-end fiscal crisis turned sour, even as investors still expect a deal.


The S&P 500 slipped after a two-day rally that took the benchmark index to its highest close in two months. Defensive-oriented shares led the decliners, including health care and consumer staples.


General Motors bucked the overall weakness to surge 6.6 percent to $27.18 after the automaker said it will buy back 200 million of its shares from the U.S. Treasury, which plans to sell the rest of its GM stake over the next 15 months.


President Barack Obama and congressional Republicans are struggling to come up with a deal to avoid early 2013 tax hikes and spending cuts that many economists say could send the U.S. economy into recession.


House Speaker John Boehner, the top Republican in Congress, said in a one-minute press conference that his chamber will pass a proposal that Obama had already threatened to veto as it spares many wealthy Americans from tax hikes needed to balance the budget. Obama has already agreed to reductions in benefits for senior citizens.


"My guess is they're close to a deal, and right before, it looks like the deal is about to blow up either on manufactured or legitimate reasons," said Uri Landesman, president of hedge fund Platinum Partners in New York.


He said if the market thought a deal was in real danger, the S&P 500 would slide below 1,400. It stands now near 1,435, not far from a two-month high.


The CBOE Volatility Index <.vix> surged 11.5 percent to 17.36, but has remained relatively stable. Its 14- 50- and 200-day averages are all within 1.1 points.


Landesman said the VIX's stability indicates "the bulls have control of this market still."


Banks and energy shares - groups that outperform during periods of economic expansion - have led recent gains, indicating a shift to focusing on a growing economy as Wall Street looks past the budget talks.


Defensive sectors led Wednesday's downturn, with the S&P health care sector index <.gspa> down 1.1 percent.


The Dow Jones industrial average <.dji> dropped 98.99 points, or 0.74 percent, to 13,251.97. The S&P 500 <.spx> lost 10.98 points, or 0.76 percent, to 1,435.81. The Nasdaq Composite <.ixic> fell 10.17 points, or 0.33 percent, to 3,044.36.


Herbalife Ltd shares tumbled 12.1 percent to $37.34 after William Ackman, one of the world's biggest hedge fund managers, said he is shorting the stock of the weight management products company.


Oracle shares helped cap the Nasdaq's loss after the company reported earnings that beat expectations on strong software sales growth. Oracle jumped 3.7 percent to $34.09.


Knight Capital Group Inc climbed 5.4 percent to $3.51 after it agreed to be bought by Getco Holdings in a deal valued at $1.4 billion. The stock, which nearly collapsed after a trading error in August, remains down about 70 percent so far this year.


Shares of Chinese display advertising provider Focus Media Holding Ltd jumped 6.7 percent to $25.52 after it agreed to be bought by a consortium of private equity funds led by the Carlyle Group for about $3.6 billion.


Data showed homebuilding permits touched their highest level in nearly 4-1/2 years in November. The PHLX housing index <.hgx> fell 0.8 percent, but has gained 66.4 percent this year as the housing market has turned the corner.


About 6.9 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, slightly above the daily average so far this year of about 6.45 billion shares.


Advancing and declining issues were almost even on both the NYSE and the Nasdaq.


(Reporting by Rodrigo Campos; Editing by Jan Paschal)



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Mathieu Ngudjolo, Congolese Warlord, Is Acquitted of War Crimes





PARIS — The International Criminal Court in The Hague said Tuesday that it found testimony against a rebel leader “too contradictory and too hazy” to convict him of a gruesome 2003 attack on a village in the Democratic Republic of Congo in which some 200 people were hacked to death and female survivors were raped and held in camps as sex slaves.







Reuters

Mathieu Ngudjolo, seated center, was acquitted of war crimes at the International Criminal Court in The Hague on Tuesday.







The acquittal of the leader, Mathieu Ngudjolo, was only the second verdict issued by the court since it opened its doors a decade ago. It drew harsh criticism from rights groups, who faulted prosecutors for not assembling a stronger case.


The trial had been tightly focused on the events of Feb. 24, 2003, in the eastern Congolese village of Bogoro. Prosecutors said the attackers used machetes to preserve bullets and burned some civilians alive. In their ruling, the judges said that they did not question that the villagers had suffered atrocities but that there was not enough evidence to convict Mr. Ngudjolo of murder, rape and using child soldiers.


“This does not necessarily mean that the alleged fact did not occur,” the presiding judge, Bruno Cotte of France, said of the prosecutors’ failure to prove the charges beyond a reasonable doubt.


AndrĂ© Kito, a coordinator of Congolese rights groups, said the verdict was “a hard blow for the victims and affected communities.” He added that people in the region had placed much hope in getting justice from the court after enduring years of terror at the hands of militia fighters jockeying for control of mineral-rich areas.


The court has indicted suspects in seven African countries. Tuesday’s verdict was the second case in which prosecutors faced criticism for their handling of a case from the Ituri region of Congo.


Another Congolese rebel leader, Thomas Lubanga, was sentenced to 14 years in prison in July after being convicted of recruiting child soldiers in Ituri. That verdict followed a troubled trial that was halted twice as judges and prosecutors wrestled over the nature of the evidence.


After Mr.  Ngudjolo was acquitted Tuesday, prosecutors  asked the judges to keep Mr. Ngudjolo in detention, saying they intended to appeal  the verdict. 


Human Rights Watch called Tuesday for the court’s prosecutor to investigate the leaders behind the bloodshed. “The I.C.C. prosecutor needs to strengthen its investigations of those responsible for grave crimes in Ituri, including high-ranking officials in Congo, Rwanda and Uganda who supported the armed groups,” said Geraldine Mattioli-Zeltner, an advocacy director of the rights group.


Mr. Ngudjolo, who had pleaded not guilty, showed no emotion when the verdict was read. The court had been criticized for spending significant sums for Mr. Ngudjolo’s wife and six children to visit him during his confinement.


Mr. Ngudjolo, 42, a former nurse, was arrested in 2008 in the Congolese capital, Kinshasa, accused of crimes that took place while he was chief of staff for the Front for National Integration, an armed militia that was made up mostly of fighters from the Lendu ethnic group. He was put on trial with Germain Katanga, who led an allied militia also accused of participating in the attack on Bogoro. Mr. Katanga’s trial will continue separately.


Read More..

New Android botnet discovered across all major networks






A new Android spam botnet has been discovered across all major networks that sends thousands of text messages without a user’s permission, TheNextWeb reported. The threat, which is known at SpamSoldier, was detected on December 3rd by Lookout Security in cooperation with an unnamed carrier partner. The malware is said to spread through a collection of infected phones that send text messages, which usually advertise free versions of popular paid games like Grand Theft Auto and Angry Birds Space, to hundreds of users each day.


[More from BGR: Facebook’s Instagram monetization plan: License users’ photos without paying for them]






Once a user clicks on the link to download the game, his or her phone instead downloads the malicious app. When the app is downloaded, SpamSoilder removes its icon from the app drawer, installs a free version of the game in question and immediately starts sending spam messages.


[More from BGR: How not to fix Apple Maps]


The security firm notes that the threat isn’t widespread, however it has been spotted on all major carriers in the U.S. and has potential to do serious damage if something isn’t done soon to stop it.


This article was originally published by BGR


Wireless News Headlines – Yahoo! News





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Gossip Girl's Costume Designer Recalls His Favorite Fashion Moments




Style News Now





12/18/2012 at 10:30 AM ET



Gossip Girl FinaleGiovanni Rufino/The CW; FameFlynet


When asked about his favorite fashion moment in the series finale, Gossip Girl costume designer Eric Daman has two instant answers.


“Serena descending the staircase in her gilded Georges Chakra wedding gown is a moment to remember forever,” he tells PEOPLE. “And Chuck and Blair (in Elie Saab) finally in wedding blues.”


Throughout its six seasons, the show offered many major style memories, though Daman finds it hard to pick just a few standouts.



“Each episode, each character, each outfit were all significant to the series — I loved dressing them all,” he says. “You can’t play favorites when playing with such a beautiful cast — after six years they become your family.”


That sense of family is something Daman says he’ll miss having. “I’ll cherish the wonderful, fashionable, madcap moments we spent together trying on designer duds and playing dress-up,” he shares.


Those moments of fashion brilliance are something he’d always hoped for — but didn’t necessarily think the show would attain.


“The styles on Gossip Girl evolved as much as we’d hoped they would from the beginning, and so much more than we could have ever imagined,” he says. “We set out to be on trend, and inspire trends, but we did not — and could not — have expected Gossip Girl to become the worldwide fashion phenomenon it has become.”


That evolution was especially clear on the show’s leading ladies, Blake Lively‘s Serena and Leighton Meester‘s Blair. “With the success of the show spanning a full six seasons, it offered an incredible opportunity to develop the styles of the characters very fully, and over a long character arc for each,” he explains. “As obvious as the choices seemed to become, they also became more specific, and more exciting to discover. As [the characters] grew up and evolved, their style followed suit.”


So with the show coming to a close, does Daman have any regrets? Just one, he says: “My only regret is that it is over.” Tell us: Whose wedding dress did you love best? And are you going to miss the show?  


–Kate Hogan


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Experts: Kids are resilient in coping with trauma


WASHINGTON (AP) — They might not want to talk about the gunshots or the screams. But their toys might start getting into imaginary shootouts.


Last week's school shooting in Connecticut begs the question: What will be the psychological fallout for the children who survived?


For people of any age, regaining a sense of security after surviving violence can take a long time. They're at risk for lingering anxiety, depression, post-traumatic stress disorder.


But after the grief and fear fades, psychiatrists say most of Newtown's young survivors probably will cope without long-term emotional problems.


"Kids do tend to be highly resilient," said Dr. Matthew Biel, chief of child and adolescent psychiatry at MedStar Georgetown University Hospital.


And one way that younger children try to make sense of trauma is through play. Youngsters may pull out action figures or stuffed animals and re-enact what they witnessed, perhaps multiple times.


"That's the way they gain mastery over a situation that's overwhelming," Biel explained, saying it becomes a concern only if the child is clearly distressed while playing.


Nor is it unusual for children to chase each other playing cops-and-robbers, but now parents might see some also pretending they're dead, added Dr. Melissa Brymer of the UCLA-Duke National Center for Child Traumatic Stress.


Among the challenges will be spotting which children are struggling enough that they may need professional help.


Newtown's tragedy is particularly heart-wrenching because of what such young children grappled with — like the six first-graders who apparently had to run past their teacher's body to escape to safety.


There's little scientific research specifically on PTSD, post-traumatic stress disorder, in children exposed to a burst of violence, and even less to tell if a younger child will have a harder time healing than an older one.


Overall, scientists say studies of natural disasters and wars suggest most children eventually recover from traumatic experiences while a smaller proportion develop long-term disorders such as PTSD. Brymer says in her studies of school shootings, that fraction can range from 10 percent to a quarter of survivors, depending on what they actually experienced. A broader 2007 study found 13 percent of U.S. children exposed to different types of trauma reported some symptoms of PTSD, although less than 1 percent had enough for an official diagnosis.


Violence isn't all that rare in childhood. In many parts of the world — and in inner-city neighborhoods in the U.S., too — children witness it repeatedly. They don't become inured to it, Biel said, and more exposure means a greater chance of lasting psychological harm.


In Newtown, most at risk for longer-term problems are those who saw someone killed, said Dr. Carol North of the University of Texas Southwestern Medical Center, who has researched survivors of mass shootings.


Friday's shootings were mostly in two classrooms of Sandy Hook Elementary School, which has about 450 students through fourth-grade.


But those who weren't as close to the danger may be at extra risk, too, if this wasn't their first trauma or they already had problems such as anxiety disorders that increase their vulnerability, she said.


Right after a traumatic event, it's normal to have nightmares or trouble sleeping, to stick close to loved ones, and to be nervous or moody, Biel said.


To help, parents will have to follow their child's lead. Grilling a child about a traumatic experience isn't good, he stressed. Some children will ask a lot of questions, seeking reassurance, he said. Others will be quiet, thinking about the experience and maybe drawing or writing about it, or acting it out at playtime. Younger children may regress, becoming clingy or having tantrums.


Before second grade, their brains also are at a developmental stage some refer to as magical thinking, when it's difficult to distinguish reality and fantasy. Parents may have to help them understand that a friend who died isn't in pain or lonely but also isn't coming back, Brymer said.


When problem behaviors or signs of distress continue for several weeks, Brymer says it's time for an evaluation by a counselor or pediatrician.


Besides a supportive family, what helps? North advises getting children back into routines, together with their friends, and easing them back into a school setting. Studies of survivors of the Sept. 11 terrorist attacks found "the power of the support of the people who went through it with you is huge," she said.


Children as young as first-graders can benefit from cognitive-behavioral therapy, Georgetown's Biel said. They can calm themselves with breathing techniques. They also can learn to identify and label their feelings — anger, frustration, worry — and how to balance, say, a worried thought with a brave one.


Finally, avoid watching TV coverage of the shooting, as children may think it's happening all over again, Biel added. He found that children who watched the 9/11 clips of planes hitting the World Trade Center thought they were seeing dozens of separate attacks.


___


EDITOR'S NOTE — Lauran Neergaard covers health and medical issues for The Associated Press in Washington.


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Wall Street climbs on economy bets as it looks past "cliff"

NEW YORK (Reuters) - U.S. stocks rallied on strong volume on Tuesday, capping off the S&P 500's best two-day run in a month, on confidence that a deal would be struck in Washington to avoid painful spending cuts and tax hikes that could hurt the economy.


Banks, energy and technology - sectors that would benefit during economic expansion - led gains as investors remain confident that lawmakers will come to an agreement to avoid the so-called "fiscal cliff" deadline at the end of the year.


The PHLX oil services sector index <.osx> jumped 3.1 percent, with eight of its 15 components up 3 percent or more.


"The view is that the economy is getting better, and that is always good for energy demand," said Shawn Hackett, president at Hackett Financial Advisors in Boynton Beach, Florida.


Hackett said the United States would avoid "whatever the cliff means" for the economy, allowing investors to focus on growth.


President Barack Obama's most recent offer to Republicans in the ongoing budget talks makes concessions on taxes and social programs spending. House Speaker John Boehner said the offer is "not there yet," though he remains hopeful about an agreement. Senate Democrats, however, have expressed concern about cuts to Social Security.


Financial stocks shot higher, as traders bet on a greater demand for loans and a steepening of the yield curve. U.S. government debt sold off Tuesday, with the benchmark 10-year U.S. Treasury note's yield briefly hitting its highest since late October.


The S&P financial sector <.gspf> added 1.5 percent.


The Dow Jones industrial average <.dji> rose 115.57 points, or 0.87 percent, to 13,350.96 at the close. The S&P 500 <.spx> gained 16.43 points, or 1.15 percent, to 1,446.79. The Nasdaq Composite <.ixic> added 43.93 points, or 1.46 percent, to 3,054.53.


It was the S&P 500's first back-to-back gain of more than 1 percent since late July.


Stocks of smaller companies outperformed the broader market, with the Russell 2000 <.rut> up 1.5 percent.


Shares of firearm makers sank in the aftermath of a school shooting in Newtown, Connecticut, on Friday that killed 20 young children and six adults.


Smith and Wesson fell 10 percent to $7.79 on its largest-ever daily volume, though it was still up about 77 percent so far this year. Sturm Ruger and Co slid 7.7 percent Tuesday to $40.60.


Private equity firm Cerberus Capital Management said it would sell gunmaker Freedom Group, whose Bushmaster AR-15 rifle was used in the Connecticut massacre. Dick's Sporting Goods suspended the sale of certain semi-automatic rifles in its stores nationwide.


Technology shares rose, led by Apple , up 2.9 percent at $533.90 after losing nearly 13 percent in the last two weeks. The S&P Information Technology Index <.gspt> rose 1.7 percent.


Arbitron Inc surged 23.6 percent to $47.03 after Nielsen Holdings NV agreed to buy the media and marketing research firm in a deal worth $1.26 billion. Nielsen rose 4.4 percent to $30.92.


About 7.4 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, more than the daily average so far this year of about 6.5 billion shares.


On the NYSE, roughly 14 issues rose for every five that fell, while on the Nasdaq, advancers outnumbered decliners by a ratio of about 5 to 2.


(Reporting by Rodrigo Campos; Editing by Jan Paschal)



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