Wall Street inches up after data; Apple extends fall

NEW YORK (Reuters) - U.S. stocks edged higher on Friday and the S&P 500 was on track for its biggest weekly gain in over a year after a jobs report showed employers kept the pace of hiring steady in December.

The S&P 500 index's weekly gain would be its largest since December 2011. The index recorded the largest daily gain in more than a year on Wednesday following the "fiscal cliff" agreement.

Shares of Apple Inc dropped 2.3 percent to $529.62, continuing its downward path of recent months and pressuring the Nasdaq.

Adding to concerns about the iPhone maker's ability to produce more innovative products, rival Samsung Electronics Co Ltd is expected to widen its lead over Apple in global smartphone sales this year with growth of 35 percent. Market researcher Strategy Analytics said Samsung had a broad product lineup.

The market improved modestly after data from the Institute for Supply Management, which showed the U.S. service sector grew at its fastest pace in 10 months in December, boosted by a rise in new orders.

"The jobs number today was somewhat benign. It was pretty close to what estimates were, so there wasn't much to draw out volatility," said Gordon Charlop, managing director at Rosenblatt Securities in New York.

"I get the sense we're just sort of going to digest the events of earlier this week," he said, referring to the fiscal cliff deal.

The Labor Department said payrolls outside the farming sector grew by 155,000 jobs last month, slightly below November's level. Gains in employment were distributed broadly throughout the economy, from manufacturing and construction to healthcare.

The Dow Jones industrial average <.dji> was up 19.04 points, or 0.14 percent, at 13,410.40. The Standard & Poor's 500 Index <.spx> was up 4.47 points, or 0.31 percent, at 1,463.84. The Nasdaq Composite Index <.ixic> was up 4.06 points, or 0.13 percent, at 3,104.62.

Eli Lilly and Co stock rose 3.7 percent to $51.57 after the pharmaceuticals maker said it expects its 2013 earnings to increase to $3.75 to $3.90 per share, excluding items, from $3.30 to $3.40 per share in 2012.

Shares of Mosaic Co gained 2.7 percent to $58.29. Excluding items, the fertilizer producer's quarterly earnings beat analysts' expectations, according to Thomson Reuters I/B/E/S. [ID:nL4N0A93GG]

The Mosaic move helped boost the S&P Materials index <.gspm> to 0.8 percent, the biggest gainer of the major sector indexes.

The rise in payrolls shown by the jobs data did not make a dent in the still-high U.S. unemployment rate, but it calmed fears about the possibility of the U.S. Federal Reserve ending its highly stimulative monetary policy.

Concerns about the duration of the Fed's stimulus program prompted a pull-back from the market Thursday after a rally.

Minutes from the Fed's December policy meeting, released Thursday, showed Fed officials were increasingly worried about the risks of asset purchases to financial markets, though they looked set to continue with the open-ended stimulus program for now.

"I think you saw that in the reaction yesterday," said Michael James, senior trader at Wedbush Morgan in Los Angeles, adding that he thinks the equity markets will not be dragged further by the Fed minutes.

(Additional reporting by Angela Moon; Editing by Bernadette Baum, Nick Zieminski and Kenneth Barry)

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Gérard Depardieu, Citizen of Russia

But since then, a public feud between Mr. Depardieu and French officials has continued to simmer over Mr. Depardieu’s complaint a few days earlier about France’s high tax rates on the wealthy. French politicians and commentators have lambasted him for renouncing his French citizenship and registering as a resident of Néchin in Belgium, which has lower taxes. And on Thursday, the Kremlin announced that Mr. Putin had kept his promise and had signed a decree making Mr. Depardieu a citizen of Russia.

A spokesman for Mr. Putin, Dmitri Peskov, said that Mr. Depardieu had recently applied for citizenship, and that it was granted in honor of his cultural achievements.

“The thing is that Depardieu has been a part of large film projects and has acted many parts, including the part of Rasputin,” Mr. Peskov told the Interfax news agency. Referring to a television movie about the mad monk, he added, “This film has not been shown here, but it is a very bold and innovative interpretation of the character.”

It seemed likely, however, that Mr. Putin also saw a poetic opportunity in the chance for Russia, long known for losing wealthy citizens to the West, to claim one in return — and not just anyone, but a macho actor instantly recognizable by a giant nose that seems made for sniffing Bordeaux by the barrel.

That Mr. Depardieu might find Russia an attractive place in which to settle down, or at least to declare as his official tax address, fits in well with a narrative that Mr. Putin has developed in recent months portraying Russia not just as a geopolitical equal of Western powers, but as superior in many respects, especially in terms of its performance during the economic downturn.

“On the whole, we made a recovery from the crisis even faster than other countries,” Mr. Putin said. “Just look at the recession in Europe. Russia has posted growth, albeit a modest one, but we still have a much better situation than in the once-prosperous euro zone, or even in the United States.”

Guerrar and Co., a media relations firm that represents Mr. Depardieu, declined to comment on the Kremlin’s announcement.

If Mr. Depardieu chooses to take up Russian citizenship, he would potentially trade steep French income tax rates, which he said now claim 85 percent of his income, and even Belgian rates of 60 percent or higher, for Russia’s flat 13 percent income tax. The value-added tax, a sales tax on goods and services, is 18 percent in Russia compared with nearly 20 percent in France, while Russian social security taxes are 30 percent compared with 50 percent in France.

But aside from tax savings, Mr. Putin suggested that French officials were too brusque in their response to Mr. Depardieu’s complaints and that he might find that Russians simply understand him better as an artist. “Actors, musicians and artists are people with a special, delicate psychological makeup and, as we say in Russia, the artist is easily offended,” Mr. Putin said at the news conference on Dec. 20. “So I understand Mr. Depardieu’s feelings.”

Mr. Putin at the time went out of his way to say that he meant no ill will toward the French. “Among our foreign partners, France stands out,” he said, prefacing his response to a reporter who asked if he had offered Mr. Depardieu residency. “We have had close spiritual ties for centuries now, despite tragic events in our common history.”

Mr. Putin also said that he regarded Mr. Depardieu as thoroughly French as Mr. Putin, a former K.G.B. agent, is Russian. “I must say that even though he said — and I read his statement — that he considers himself a European, a citizen of the world, I know for a fact that he considers himself a Frenchman,” Mr. Putin said. “I know this since we have very friendly, personal relations, even though we have not met many times. He loves his country, its history, its culture; that’s his life.”

Mr. Depardieu, it turns out, is no stranger to Russia. In October, he visited Grozny, the capital of the Russian republic of Chechnya, where he attended a celebration of the capital’s 194th anniversary with the Chechen leader, Ramzan Kadyrov, who has invited Mr. Depardieu to live there.

Video of the October event shows Mr. Depardieu exhorting an appreciative crowd in a mixture of Russian and French: “Glory to Grozny! Glory to Chechnya! Chechnya is strong! Glory to Kadyrov!”

Mr. Depardieu has also agreed to star in a movie written by Gulnara Karimova, the eldest daughter of President Islam Karimov of Uzbekistan, the former Soviet Republic.

A spokeswoman for the French government, Najat Vallaud-Belkacem, said Thursday that the decision to grant Mr. Depardieu a passport was “an exclusive prerogative of the head of the Russian state,” and declined to comment further, Europe 1 radio reported.

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Jayden Lamb's Happy Spirit Kept Alive Through Strangers' Donations

Heroes Among Us

By Stephen M. Silverman

01/03/2013 at 12:45 PM EST

Jayden Lamb

Courtesy Jayden Lamb Family

Jayden Lamb was not even 9 years old when he died the week after last Thanksgiving, two years into his battle against cancer.

"It was a short life but a big impact," his father, Tom Lamb, of Midland, Mich., told the MLive.com. "There was something about him, I'm not sure if it was the message he had to get out, but he was so happy."

Those who loved Jayden – the many family and friends – have found a way to honor his memory: by spreading goodwill through the generous and genuine helping of others.

The local pay-it-forward movement began when Jayden's father and stepmother, Tom and Nicole Lamb, bought Starbucks coffee and pairs of shoes for strangers, intended as a means to ease their pain. Now, there is the Keep on Truckin' Team Jayden Facebook page, which allows others to follow their lead.

More than 35,000 people have joined the Facebook page and shared countless examples of paying it forward in Jayden's name. Stories of pizzas, toys and gift cards being presented to total strangers started pouring in. One anonymous person even donated a diamond ring to the Salvation Army in Midland, reportedly worth $2,000, with a note attached that read: "Paying it Forward Jayden Style. God Bless," according to the Facebook page. And local TV station NBC 25 reports there have also been cases of $100 tips given in Jayden's name, too.

"It's amazing just to see all the people helping each other and seeing so many people compassionate in his name," said Tom Lamb. "To see the people he has touched, it's just unbelievable to me and my wife."

As the recipient of someone's generosity, Jennifer Campbell of Midland was able to provide Christmas for her four children. After visiting the local Kmart to cancel her holiday layaway, Campbell discovered that the entire balance, minus one penny, had already been paid off anonymously.

"I want to thank whoever saved my kids' Christmas," said Campbell. "Jayden is smiling so big in heaven right now."

His parents agree.

"It's extremely hard to lose a child to anything," said his dad, adding: "[But] it makes me feel my child has a made a difference to people."

Know a hero? Send suggestions to heroesamongus@peoplemag.com. For more inspiring stories, read the latest issue of PEOPLE magazine

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Flu? Malaria? Disease forecasters look to the sky

NEW YORK (AP) — Only a 10 percent chance of showers today, but a 70 percent chance of flu next month.

That's the kind of forecasting health scientists are trying to move toward, as they increasingly include weather data in their attempts to predict disease outbreaks.

In one recent study, two scientists reported they could predict — more than seven weeks in advance — when flu season was going to peak in New York City. Theirs was just the latest in a growing wave of computer models that factor in rainfall, temperature or other weather conditions to forecast disease.

Health officials are excited by this kind of work and the idea that it could be used to fine-tune vaccination campaigns or other disease prevention efforts.

At the same time, experts note that outbreaks are influenced as much, or more, by human behavior and other factors as by the weather. Some argue weather-based outbreak predictions still have a long way to go. And when government health officials warned in early December that flu season seemed to be off to an early start, they said there was no evidence it was driven by the weather.

This disease-forecasting concept is not new: Scientists have been working on mathematical models to predict outbreaks for decades and have long factored in the weather. They have known, for example, that temperature and rainfall affect the breeding of mosquitoes that carry malaria, West Nile virus and other dangerous diseases.

Recent improvements in weather-tracking have helped, including satellite technology and more sophisticated computer data processing.

As a result, "in the last five years or so, there's been quite an improvement and acceleration" in weather-focused disease modeling, said Ira Longini, a University of Florida biostatistician who's worked on outbreak prediction projects.

Some models have been labeled successes.

In the United States, researchers at Johns Hopkins University and the University of New Mexico tried to predict outbreaks of hantavirus in the late 1990s. They used rain and snow data and other information to study patterns of plant growth that attract rodents. People catch the disease from the droppings of infected rodents.

"We predicted what would happen later that year," said Gregory Glass, a Johns Hopkins researcher who worked on the project.

More recently, in east Africa, satellites have been used to predict rainfall by measuring sea-surface temperatures and cloud density. That's been used to generate "risk maps" for Rift Valley fever — a virus that spreads from animals to people and in severe cases can cause blindness or death. Researchers have said the system in some cases has given two to six weeks advance warning.

Last year, other researchers using satellite data in east Africa said they found that a small change in average temperature was a warning sign cholera cases would double within four months.

"We are getting very close to developing a viable forecasting system" against cholera that can help health officials in African countries ramp up emergency vaccinations and other efforts, said a statement by one of the authors, Rita Reyburn of the International Vaccine Institute in Seoul, South Korea.

Some diseases are hard to forecast, such as West Nile virus. Last year, the U.S. suffered one of its worst years since the virus arrived in 1999. There were more than 2,600 serious illnesses and nearly 240 deaths.

Officials said the mild winter, early spring and very hot summer helped spur mosquito breeding and the spread of the virus. But the danger wasn't spread uniformly. In Texas, the Dallas area was particularly hard-hit, while other places, including some with similar weather patterns and the same type of mosquitoes, were not as affected.

"Why Dallas, and not areas with similar ecological conditions? We don't really know," said Roger Nasci of the Centers for Disease Control and Prevention. He is chief of the CDC branch that tracks insect-borne viruses.

Some think flu lends itself to outbreak forecasting — there's already a predictability to the annual winter flu season. But that's been tricky, too.

Seasonal flu reports come from doctors' offices, but those show the disease when it's already spreading. Some researchers have studied tweets on Twitter and searches on Google, but their work has offered a jump of only a week or two on traditional methods.

In the study of New York City flu cases published last month in the Proceedings of the National Academy of Sciences, the authors said they could forecast, by up to seven weeks, the peak of flu season.

They designed a model based on weather and flu data from past years, 2003-09. In part, their design was based on earlier studies that found flu virus spreads better when the air is dry and turns colder. They made calculations based on humidity readings and on Google Flu Trends, which tracks how many people are searching each day for information on flu-related topics (often because they're beginning to feel ill).

Using that model, they hope to try real-time predictions as early as next year, said Jeffrey Shaman of Columbia University, who led the work.

"It's certainly exciting," said Lyn Finelli, the CDC's flu surveillance chief. She said the CDC supports Shaman's work, but agency officials are eager to see follow-up studies showing the model can predict flu trends in places different from New York, like Miami.

Despite the optimism by some, Dr. Edward Ryan, a Harvard University professor of immunology and infectious diseases, is cautious about weather-based prediction models. "I'm not sure any of them are ready for prime time," he said.

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Wall Street rises after post-cliff deal rally

NEW YORK (Reuters) - Stocks edged up on Thursday, adding to Wall Street's biggest single-day rally in a year on Wednesday after a deal in Washington to avert the "fiscal cliff."

Investors were more wary than in the previous sessions as they turned their focus to upcoming battles in Congress, including likely bitter fights over spending cuts and raising the federal debt ceiling.

"I would be cautious of big moves going forward. There are still some clouds over the horizon, with the fiscal issue of the government. We don't know how they're going to pan out, but in all likelihood there's not going to be a calamity," said Jeff Meyerson, head of trading at Sunrise Securities in New York.

Wednesday's rally began 2013 with Wall Street's best performance in over a year after the House of Representatives passed a measure to avert the fiscal cliff, which could have caused a recession.

The S&P Energy index <.gspe> rose the most of the major sector indexes, at 0.52 percent, led in part by CONSOL Energy , which said it expects to sell more non-core assets in 2013. CONSOL was up 3.5 percent to $32.09.

The Dow Jones industrial average <.dji> gained 6.30 points, or 0.05 percent, at 13,418.85. The Standard & Poor's 500 Index <.spx> rose 2.05 points, or 0.14 percent, at 1,464.47. The Nasdaq Composite Index <.ixic> was up 5.12 points, or 0.16 percent, at 3,117.39.

Retailers were mixed on Thursday after releasing December sales reports in an uncertain economy.

Shares in U.S. retailer Costco Wholesale Corp rose 1.4 percent to $102.88 after the company reported a better-than-expected 9 percent rise in December sales at stores open at least a year, primarily boosted by an additional sales day in the reporting period.

Gap Inc stock rose nearly 2 percent to $31.99 following news that the retailer will buy women's fashion boutique Intermix Inc for $130 million to enter the luxury clothes market, the Wall Street Journal reported.

Family Dollar Stores Inc stock dropped 11.7 percent to $56.52 on the company's report of lower-than-expected quarterly profit as its emphasis on selling more everyday items like cigarettes and soft drinks put pressure on margins.

Hiring data did not boost equity prices despite showing U.S. private employers added more jobs than expected in December.

"The report now sets the stage, as we expect a strong non-farm payroll reading on Friday," said Andrew Wilkinson, chief economic strategist at Miller Tabak & Co in New York

The government's broader monthly payrolls report, due on Friday, is expected to show the economy created 150,000 jobs compared with 146,000 in November, according to a Reuters poll. The U.S. unemployment rate is seen holding steady at 7.7 percent.

Another report on Thursday showed that the number of Americans filing new claims for unemployment benefits rose last week, but year-end holidays likely distorted the picture of labor market conditions.

(Additional reporting by Angela Moon, Editing by Bernadette Baum and Kenneth Barry)

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Moktada al-Sadr Encourages Demonstrations in Iraq

BAGHDAD — A populist Shiite leader in Iraq, Moktada al-Sadr, expressed support on Tuesday for fresh protests against Prime Minister Nuri Kamal al-Maliki, a fellow Shiite but his political opponent, saying that Mr. Maliki bears “full responsibility” for the unrest in the country.

As with many developments in Iraq, the timing and venue of Mr. Sadr’s comments to reporters were as notable as their meaning. He spoke in Najaf, one of the holiest cities of his Shiite sect, just as Iraq ended its bloodiest year since 2009, a reflection of unabated ethnic, sectarian and political tensions among the country’s Kurdish, Arab, Sunni and Shiite populations.

Several times during the gathering, Mr. Sadr directed his remarks at Mr. Maliki, who has taken recent steps that suggested he was asserting greater control over many aspects of the government and that prompted fears he was cracking down on his political opponents. Mr. Sadr’s remarks could indicate that he is trying to test the political waters or possible support from the street before Iraq’s provincial elections, which are scheduled for the spring.

Mr. Sadr also tried to assert broader credibility for the anti-Maliki protests by comparing them to the movements that have swept many Arab countries in the past few years, calling for new government leaders and better representation.

“The Iraqi spring is coming,” Mr. Sadr said, in a tone that implied a warning to Mr. Maliki.

“We are with the demonstrators, and Parliament must be with them, not against them,” he said. “The legitimate demands of the demonstrators, by which people know what they want, should be met.”

Mr. Sadr was careful to appear moderate and to say he was speaking for all Iraqis in his remarks, which his media office distributed to journalists throughout the country. He said he supported the widespread demonstrations as long as they were peaceful and did not seek to create divisions, driving the last point home by adding that he was willing to go to Sunni-dominated Anbar Province to take part in protests.

Demonstrations against Mr. Maliki’s Shiite-dominated government erupted in Sunni areas last month in response to a raid by security forces on the office and home of the Sunni finance minister, Rafie al-Issawi. In one protest last week, tens of thousands of Sunni Muslims blocked Iraq’s main trade route to neighboring Syria and Jordan, Reuters reported.

Aside from reaction in the street, the raid had immediate political fallout. Mr. Issawi described it as a “pre-election blow” intended to weaken Mr. Maliki’s rivals. Leaders from the Sunni-dominated bloc, Iraqiya, threatened to pull out of the government and called for a no-confidence vote on Mr. Maliki.

Mr. Sadr’s voice has now added his voice to the discord that has left the country in disarray a full year after the withdrawal of American forces left seemingly intractable problems among political factions and ethnic groups.

Tensions between the Kurds in the north and the government in Baghdad, who were already at odds over sharing oil revenues, have risen as soldiers squared off with Kurdish militias after Mr. Maliki sought to consolidate his control over security in the north.

Further political uncertainty occurred at the end of 2012 when the Kurdish president, Jalal Talabani, suffered a stroke and was flown to Germany for treatment.

Sunni Arab and Kurdish officials have accused Mr. Maliki of trying to monopolize power before. In September, Tariq al-Hashimi, the vice president of Iraq and a prominent Sunni Muslim, was convicted of murder and sentenced to death in absentia on accusations that he oversaw death squads. Sunni supporters accused the Shiite-led government of trying to sideline them.

The discord has translated into bloodshed. While attacks have not been as frequent or widespread as they were during the height of the insurgency, Iraqis marked the end of 2012 with a grim milestone.

Iraq Body Count, a nonprofit group that tallies casualties, said Tuesday that civilian deaths from attacks in Iraq rose to at least 4,471 in 2012 from 4,136 in 2011, the first annual rise since 2009. Deaths during the final two weeks were still being tallied.

“Over all, 2012 has been more consistent with an entrenched conflict than with any transformation in the security situation for Iraqis in the first year since the formal withdrawal of U.S. troops,” the group said.

Yasir Ghazi reported from Baghdad, and Christine Hauser from New York.

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How to Sync All Your Calendars Onto One Smartphone

It’s a simple request: I just want my online calendars to sync with my smartphone… is that too much to ask? It took some initial research and finesse, but I’ve discovered the best ways to get your Yahoo and Google calendars to appear on either an Android or Apple IOS mobile device.

Google Calendar on Android Phone
When you first set up your Android phone, you had to create or enter your Google account info, so the phone already has the login info for your Google Calendar. Now you can go to your phone’s Settings, choose Accounts, click the Google account and then make sure “Sync Calendar” is checked. Then go to the Calendar App on your Android phone and it should be there.

For multiple calendars, hit the Settings button and then Calendars to customize which Google calendars you see.

Yahoo Calendar on Android Phone
Although it seems like it should be easy to add the Yahoo Calendar to your Android, I never got mine to sync. Theoretically, you would open the Android calendar on your phone, hit the Settings option, and Add Account. But depending on the flavor of Android I tried, I either couldn’t add a Yahoo account or when I did, it didn’t sync. It could just be me, but I found a lot of people online with the same issue. So I tried one of the most recommended apps to solve the problem – Smoothsync for Yahoo. It costs just under three dollars, and once you install it, you can sync all your Yahoo calendars into the native Android calendar. Ah, sweet relief.

[Related: New Tricks for New (and Old) Androids]

Yahoo Calendar on iPhone
On your IOS device, hit Settings. If you haven’t added your Yahoo Account yet, do so by going to Mail, Contacts, Calendars. Choose “Add Account.” Once you’ve input your Yahoo login info, the next screen gives you the option to Sync Mail, Contacts, and Calendars. Make sure calendars is on. Hit the Home button, open the IOS calendar. Hit the Calendars button on the top corner and you will see all your calendars listed under Yahoo. If you only have one Yahoo calendar, make sure you check to have it show in your IOS Cal. Also, many people have multiple Yahoo calendars: a family calendar, a work calendar, a soccer team calendar for the kids, and a personal calendar. You can customize which of these Yahoo Calendars show up by checking or unchecking them in this screen.

Google Calendar on iPhone
It’s a little more complicated, but you can also put a Google or Gmail calendar on the iPhone. Here’s how:

If you only have your one personal Google calendar to sync, you do things the same way as with Yahoo: Go to Settings on your IOS device, add your Google account (if you haven’t done so yet) by going to Mail, Contacts, Calendars. Choose “Add Account.”

Once you’ve input your Google login info, the next screen gives you the option to Sync Mail, Contacts, and Calendars. Make sure Calendars is on. Hit the Home button, then open the IOS calendar. Hit the Calendars button on the top corner and you will see your calendar listed under Google. You can track those Google dates in the IOS calendar and multiple Yahoo calendars at the same time.

But if you want multiple Google calendars, you need an app for that. Google does let you do this through their mobile site, but that’s basically just a website without the power of notifications and all the extras you like from your calendars. So I suggest getting the CalenMob app. It’s free with ads or $ 5 ad-free. It syncs all your Google calendars to the app (not the native IOS calendar) and adds in notification options, SMS functions and email alert options. It also syncs simultaneously to your Yahoo calendars.

[Related: True/False: Never Sell Your Old Phone]

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Scarlett Johannson Never Thinks About Marriage

By Andrea Billups

01/02/2013 at 12:55 PM EST

Scarlett Johansson says she won't be walking down the aisle again anytime soon simply because, she says, she "never" thinks of marriage.

In an interview with ELLE UK magazine in its February issue, Johansson says she married young the first time to now-ex-husband Ryan Reynolds, and right now, she's enjoying a committed relationship … minus the ring.

"It's really not important to me," Johansson, who's currently starring on Broadway in Cat on a Hot Tin Roof, told ELLE UK of marriage. "The only time I ever think about it is when people ask me, 'Would I get married again?' "

"I'm not having kids any time soon," she continued. "I'm in a nice relationship, I'm working a lot and, like I said, it's not important to me."

As for married life, the actress explained: "I got married when I was young and it was incredibly romantic and I liked being married, actually. But it is different. It's hard to put into words."

"To me," continued Johansson, "being in a functioning relationship doesn't mean you have to be married."

The actress, who stars in Hitchcock alongside Anthony Hopkins, Jessica Biel and Helen Mirren, is reportedly dating French journalist Romain Dauriac, 30. And apparently she enjoys the company of a man who is not in show business, calling relationships with actors "monotonous."

Johansson, however, says she likes her men on the artsy side.

"For me, most importantly, I look for a partner who is creative," she explains. "I like people that have a colorful way of looking at things, that are inspiring and like art, music and film."

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Brain image study: Fructose may spur overeating

This is your brain on sugar — for real. Scientists have used imaging tests to show for the first time that fructose, a sugar that saturates the American diet, can trigger brain changes that may lead to overeating.

After drinking a fructose beverage, the brain doesn't register the feeling of being full as it does when simple glucose is consumed, researchers found.

It's a small study and does not prove that fructose or its relative, high-fructose corn syrup, can cause obesity, but experts say it adds evidence they may play a role. These sugars often are added to processed foods and beverages, and consumption has risen dramatically since the 1970s along with obesity. A third of U.S. children and teens and more than two-thirds of adults are obese or overweight.

All sugars are not equal — even though they contain the same amount of calories — because they are metabolized differently in the body. Table sugar is sucrose, which is half fructose, half glucose. High-fructose corn syrup is 55 percent fructose and 45 percent glucose. Some nutrition experts say this sweetener may pose special risks, but others and the industry reject that claim. And doctors say we eat too much sugar in all forms.

For the study, scientists used magnetic resonance imaging, or MRI, scans to track blood flow in the brain in 20 young, normal-weight people before and after they had drinks containing glucose or fructose in two sessions several weeks apart.

Scans showed that drinking glucose "turns off or suppresses the activity of areas of the brain that are critical for reward and desire for food," said one study leader, Yale University endocrinologist Dr. Robert Sherwin. With fructose, "we don't see those changes," he said. "As a result, the desire to eat continues — it isn't turned off."

What's convincing, said Dr. Jonathan Purnell, an endocrinologist at Oregon Health & Science University, is that the imaging results mirrored how hungry the people said they felt, as well as what earlier studies found in animals.

"It implies that fructose, at least with regards to promoting food intake and weight gain, is a bad actor compared to glucose," said Purnell. He wrote a commentary that appears with the federally funded study in Wednesday's Journal of the American Medical Association.

Researchers now are testing obese people to see if they react the same way to fructose and glucose as the normal-weight people in this study did.

What to do? Cook more at home and limit processed foods containing fructose and high-fructose corn syrup, Purnell suggested. "Try to avoid the sugar-sweetened beverages. It doesn't mean you can't ever have them," but control their size and how often they are consumed, he said.

A second study in the journal suggests that only severe obesity carries a high death risk — and that a few extra pounds might even provide a survival advantage. However, independent experts say the methods are too flawed to make those claims.

The study comes from a federal researcher who drew controversy in 2005 with a report that found thin and normal-weight people had a slightly higher risk of death than those who were overweight. Many experts criticized that work, saying the researcher — Katherine Flegal of the Centers for Disease Control and Prevention — painted a misleading picture by including smokers and people with health problems ranging from cancer to heart disease. Those people tend to weigh less and therefore make pudgy people look healthy by comparison.

Flegal's new analysis bolsters her original one, by assessing nearly 100 other studies covering almost 2.9 million people around the world. She again concludes that very obese people had the highest risk of death but that overweight people had a 6 percent lower mortality rate than thinner people. She also concludes that mildly obese people had a death risk similar to that of normal-weight people.

Critics again have focused on her methods. This time, she included people too thin to fit what some consider to be normal weight, which could have taken in people emaciated by cancer or other diseases, as well as smokers with elevated risks of heart disease and cancer.

"Some portion of those thin people are actually sick, and sick people tend to die sooner," said Donald Berry, a biostatistician at the University of Texas MD Anderson Cancer Center in Houston.

The problems created by the study's inclusion of smokers and people with pre-existing illness "cannot be ignored," said Susan Gapstur, vice president of epidemiology for the American Cancer Society.

A third critic, Dr. Walter Willett of the Harvard School of Public Health, was blunter: "This is an even greater pile of rubbish" than the 2005 study, he said. Willett and others have done research since the 2005 study that found higher death risks from being overweight or obese.

Flegal defended her work. She noted that she used standard categories for weight classes. She said statistical adjustments were made for smokers, who were included to give a more real-world sample. She also said study participants were not in hospitals or hospices, making it unlikely that large numbers of sick people skewed the results.

"We still have to learn about obesity, including how best to measure it," Flegal's boss, CDC Director Dr. Thomas Frieden, said in a written statement. "However, it's clear that being obese is not healthy - it increases the risk of diabetes, heart disease, cancer, and many other health problems. Small, sustainable increases in physical activity and improvements in nutrition can lead to significant health improvements."

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Online:

Obesity info: http://www.cdc.gov/obesity/data/trends.html

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

Mike Stobbe can be followed at http://twitter.com/MikeStobbe

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Wall Street extends gains on "cliff" deal

NEW YORK (Reuters) - U.S. stocks jumped on the year's first day of trading, after Washington lawmakers cut a last-minute deal to avert automatic tax hikes that threatened to stunt economic growth.

With the gains, the S&P 500 was on target for its highest close since October 19.

The rally was broad-based, with nine stocks rising for every one falling on the New York Stock Exchange. All 10 S&P 500 industry sector indexes rose at least 1 percent, led by the S&P financial index <.gspf>, up 2.2 percent.

The S&P Information Technology index <.gspt> gained 2.1 percent. Among the strongest names in the sector was Hewlett-Packard , which climbed nearly 5 percent to $14.95. HP's gain followed a miserable 2012, when the stock fell nearly 45 percent.

On New Year's Day, while the U.S. stock market was closed, Congress passed a bill to raise taxes on wealthy individuals and families, and preserve certain benefits, while avoiding immediate austerity measures. The combination of mandatory tax hikes and reduced federal spending, which had been set to go into effect on January 1, had been known as the "fiscal cliff.

"We had three choices: We were going to be off the cliff, we were going to be on the cliff, or we were going to avoid the cliff, and we avoided it," said Brian Battle, director of trading at Performance Trust Capital Partners in Chicago.

"There's a relief rally, some progress because we raised revenue, but I think it's going to be short-lived because the relief rally today was created by politics, and the next cliff is going to be created by politics."

The vote avoided income-tax hikes for all U.S. households, but failed to resolve other political budget showdowns. Spending cuts of $109 billion in military and domestic programs were delayed for just two months, as another fight over the U.S. debt limit also looms then.

The market's surge was due to "the concrete news as opposed to a lack of specific news" that was common during the negotiations, said Stephen Carl, head of U.S. equity trading at The Williams Capital Group in New York.

U.S. stocks ended 2012 with the S&P 500 up 13.4 percent for the year, as investors largely shrugged off worries about the fiscal cliff. For the year, the Dow gained 7.3 percent and the Nasdaq jumped 15.9 percent.

The Dow Jones industrial average <.dji> gained 223.60 points, or 1.71 percent, to 13,327.74. The Standard & Poor's 500 Index <.spx> advanced 24.61 points, or 1.73 percent, to 1,450.80. The Nasdaq Composite Index <.ixic> climbed 66.87 points, or 2.21 percent, at 3,086.38.

Bank shares rose following news that U.S. regulators are close to securing another multibillion-dollar settlement with the largest banks to resolve allegations that they unlawfully cut corners when foreclosing on delinquent borrowers.

Bank of America Corp rose 3.4 percent to $11.99 and Wells Fargo shares added 2 percent to $34.87. JPMorgan Chase & Co shares rose 1.5 percent to $44.34.

Shares of Zipcar Inc jumped 48.4 percent to $12.23 after Avis Budget Group Inc said it would buy Zipcar for about $500 million in cash to compete with larger rivals Hertz and Enterprise Holdings Inc. Avis rose 4.5 percent to $20.72.

Shares of Apple rose 2.4 percent to $545, boosting technology stocks, following a report that the most valuable tech company has started testing a new iPhone and a new version of its iOS software. Apple stocks struggled in the final weeks of 2012 before a rally to end the year.

U.S. manufacturing expanded slightly in December after an unexpected November contraction, an Institute for Supply Management report showed on Wednesday.

A Commerce Department report showed U.S. construction spending fell in November for the first time in eight months, as an extended bout of weakness in the business sector outweighed modest growth in outlays on residential projects.

The stock market's reaction to both reports was muted.

(Editing by Jan Paschal)

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