S.&P. Streak Comes to an End on Fiscal Worries

The Standard & Poor’s 500-stock index ended its six-day winning streak Thursday, retreating as worries intensified that Washington’s fiscal negotiations were dragging on with little progress.

Anxiety about the talks between Democrats and Republicans was enough to offset encouraging data on retail sales and jobless claims.

Investors are concerned that tax increases and spending cuts, set to begin in 2013 if a deal is not reached in Washington, will hurt growth. The stock market had taken the heated talk in stride lately, but downbeat remarks from the House speaker, John A. Boehner of Ohio, prompted some selling Thursday.

Mr. Boehner accused President Obama of “slow walking” the economy toward the automatic tax increases and spending cuts that will occur on Jan. 1, 2013, if no deal is reached. He was scheduled to meet with Mr. Obama later on Thursday.

“There is no conviction here and Boehner’s comments — as harsh as they were — were realistic,” said Jason Weisberg, managing director at the Seaport Securities Corporation in New York.

“The fiscal cliff is already built in,” Mr. Weisberg said. “That being said, people don’t like to be told the apocalypse is coming over and over and over again. The real players in this market have already closed their books.”

After nearing a 1 percent decline for the day, the S.& P. 500 pared losses late in the session. The index had posted six consecutive sessions of gains through Wednesday, and at one point Wednesday, the S.& P. 500 touched its highest intraday level since Oct. 22.

While the Federal Reserve’s announcement on Wednesday of a new round of economic stimulus bolstered stocks, Chairman Ben Bernanke’s comments that monetary policy would not be sufficient to offset the impact of the fiscal crisis weighed on sentiment.

The Dow Jones industrial average tumbled 74.73 points, or 0.56 percent, to 13,170.72 at the close. The S.& P. 500-stock index fell 9.03 points, or 0.63 percent, to 1,419.45. The Nasdaq composite index slid 21.65 points, or 0.72 percent, to end at 2,992.16.

Apple’s stock, down 1.7 percent at $529.69, was among the biggest drags on the Nasdaq, while I.B.M., down 0.5 percent at $191.99, was among the biggest weights on the Dow. A federal jury in Delaware Thursday found that Apple’s iPhone infringed on three patents owned by MobileMedia Ideas.

Among the day’s biggest gainers, Best Buy shares shot up 15.9 percent to $14.12 after a report that the company’s founder, Richard M. Schulze, was expected to offer to buy the consumer electronics retailer this week.

The energy and information technology sectors were the S.& P.’s weakest performers, with the S.& P. energy index declining 0.9 percent. Shares of the American refining company Phillips 66 lost 1.6 percent to $52.21.

The day’s data sent some positive signals on the economy, with weekly claims for jobless benefits dropping to nearly the lowest level since February 2008, and retail sales rising in November after an October decline, improving the picture for consumer spending.

In Europe, European Union finance ministers reached agreement to make the European Central Bank the bloc’s top banking supervisor, which could increase confidence in the ability of European Union leaders to confront the euro zone’s sovereign debt crisis.

The Treasury’s 10 year note fell 9/32 to 99 1/32, with the yield rising to 1.73 from 1.70 on Wednesday.

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'Straw' buyer of arms linked to border agent's death is sentenced

PHOENIX — A federal judge sentenced a Phoenix man Wednesday to nearly five years in prison for purchasing firearms for a Mexican drug cartel, triggering a chain of events that included the death of an elite Border Patrol agent and the unraveling of the failed federal gun-tracking operation called Fast and Furious.

Jaime Avila Jr., 25, was a "straw purchaser" of the firearms for the cartel, and his purchases included two rifles found at the scene of the death of Border Patrol Agent Brian A. Terry, who was killed two years ago this week in the desert south of Tucson.

Avila purchased 52 firearms over 10 months. Judge James A. Teilborg sentenced Avila to 57 months in prison for what he called running "weapons of war." Avila struck a deal with the federal government and pleaded guilty to a variety of weapons charges.

FULL COVERAGE: Fast and Furious

At the hearing, a cousin of Terry spoke for the slain agent's family, asking the judge to make an example of Avila.

"We believe that Mr. Avila initiated a deadly domino effect when he illegally bought those weapons and then delivered them to people who would ultimately put them in the hands of Brian's killers," said the cousin, Robert Heyer, reading from a statement.

In turn, Avila's attorney pleaded with the judge to give her client a lighter sentence, saying he was remorseful and only dabbled in drug running to feed his methamphetamine addiction.

"At the point that Mr. Avila became aware of his of connection to the incident I think he was shocked and dismayed.... He had no idea his behavior would lead to such great lengths," defense attorney Candice Shoemaker said.

Avila was one of about 20 straw buyers that were the focus of Fast and Furious, an investigation conducted by the Phoenix office of the federal Bureau of Alcohol, Tobacco, Firearms and Explosives. The investigation allowed weapons to be illegally sold in the United States so they could later be tracked across the border to Mexican drug cartels. The intent was to arrest cartel leaders, but most of the firearms disappeared. The program eventually was shut down.

During and after the court hearing, family members of Avila and Terry painted pictures of their loved ones and how their lives had collided. One, the father of a 19-month-old boy, had a drug addiction. The other, described as the backbone of his family, was nicknamed "Superman" by his Border Patrol colleagues.

On Jan. 16, 2010, Avila walked into the Lone Wolf Gun Club in Glendale, Ariz., and illegally purchased three rifles, plopping down $1,500 in cash. Nearly a year later, two of the weapons were found in a desolate section of the Arizona desert after they were dropped by the men who are suspected of killing Terry on Dec. 14, 2010.

Heyer, also chairman of the Brian Terry Foundation, described Terry as a strong, competitive, courageous and handsome man who was very patriotic. The Michigan native served in the Marine Corps after high school and went to college, where he received a degree in criminal justice. He went on to become part of the elite Tactical Unit for the Border Patrol, known as BORTAC.

"At age 40, he had much to look forward to, which included getting married and starting a family; but for now, he was living his dream," Heyer said.

Terry was supposed to fly back to Michigan for Christmas after completing his shift the night of his death. True to his meticulous attention to detail, Terry had already mailed his family's Christmas gifts. The presents trickled in the same week his family received his body for burial.

"With each delivery, we felt the indescribable pain of Brian's death," Heyer said.

Avila's family made no excuses for him and described Avila as a son and brother with a "good heart" who ended up running with the wrong crowd and battling a meth habit. They said they made no excuses for their loved one but stated that Avila didn't know that the consequences to his drug running would lead to death.

"My son is not an assassin," Avila's mother, Irene Rodriguez, said after the hearing.

Avila left behind a 19-month-old son, Jayden, and his family said he had vowed to clean up his life while in prison to serve as a role model for his boy.

"His son is his pride and joy at this moment," sister Beatriz Avila said. She extended her condolences to the Terry family and said she was glad that the sentencing was over.

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cindy.carcamo@latimes.com

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Redbox Instant Enters Crowded Instant-Streaming Field With Public Beta

The streaming-video market is getting streamier as Redbox Instant, the Redbox/Verizon mashup aimed squarely at the Netflix juggernaut, goes into the public beta phase by the end of December.

In addition to streaming videos like Netflix, $8 bucks a month gets subscribers as many as four DVDs a month at the giant red box in their local convenience store or supermarket. They’ll have to fork over another buck a month for Blu-ray. Anyone who doesn’t feel like schlepping across town for a copy of Battleship can pay 6 bucks for a streaming-only account.

All of this is part of a broader effort, announced in February, to take a bite out of Netflix. Redbox Instant is cheaper than Netflix, and it provides access to flicks from Warner Bros., Sony and Epix (who partners with Paramount Pictures, Lionsgate and MGM). But Redbox Instant will have fewer streaming titles than Netflix.

The idea looks a lot like Blockbuster’s plan of offering streaming video and the joy of picking up discs at a brick-and-mortar store. That hasn’t worked out too well for Blockbuster, and it’s hard to see how Redbox will do much better chipping away at Netflix’s dominance in the video-streaming market.

When the Redbox Instant service does launch to the masses (sometime in 2013) it will be available on iOS, Android and Google TV devices in addition to smart TVs and Blu-ray players form LG and Samsung.

While Verizon and Redbox work out their streaming service, Netflix is already onto the next thing. It has been expanding its core business by adding exclusive episodic titles. The Kevin Spacey vehicle House of Cards will premiere Feb. 1 while Arrested Development will be expanding the original 10 episodes to 12 to 15 episodes available in the spring.

It’ll be a tough climb for Redbox and Verizon. No number of red kiosks will replace the joy of watching the Bluth family implode.

Roberto is a Wired Staff Writer for Gadget Lab covering augmented reality, home technology, and all the gadgets that fit in your backpack. Got a tip? Send him an email at: roberto_baldwin [at] wired.com.

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How “Life of Pi” animators visualized Ang Lee’s blank slate

LOS ANGELES (TheWrap.com) – “Life of Pi” is a movie that has the proverbial cast of thousands… of animals, that is. In one shot set on the ocean, there are 40,000 flying fish. In another one set on a floating island, there are 60,000 meerkats. And not one of them was living and breathing, of course.

“No real meerkats were used,” senior animation supervisor Erik-Jan De Boer told the audience at an effects-themed Q&A following TheWrap’s screening of the movie at the Landmark Theatre on Monday night. “Except of course we went to meerkat sanctuaries and zoos to shoot a lot of reference footage…”

“And the two of us watched every episode of ‘Meerkat Manor,’” interrupted visual effects supervisor Bill Westenhofer. “We were gonna watch one, but it gets addictive.”

That was about all the time these two had to indulge in reality TV during the long gestation and post-production of Pi, which establishes a new benchmark for awe-inspiring digital trickery – particularly in 3D, or “stereo,” as Westenhofer and De Boer refer to the effects-complicating process.

“In total,” De Boer told TheWrap’s editor-in-chief Sharon Waxman, “we animated 580 animals in about 290 shots for the movie, which includes a giraffe, a fox, a fish, and of course the hyena and orangutan.” Not to mention the little matter of the tiger, “Richard Parker,” whose appearances as one of the movie’s co-leads are 15 percent real, 85 percent digital.

That’s not including the aforementioned meerkat and flying fish extras, brought to life via a software program appropriately titled Massive. (If only it had been around in Cecil B. DeMille‘s day.)

“The flying fish sequence is where we start to take some artistic liberties, since Pi’s telling you a tale,” said Westenhofer. “Maybe there were a thousand flying fish in reality, or even a hundred, but you’re seeing his mind’s eye, which saw this multitude, so we have 40,000 in one particular spot. The Massive software is almost artificial intelligence, where you write a little program that’s the brain for each individual fish, and it decides if it’s going to hop out of the water, and how long it’s going to fly; if it sees someone in its path, it does avoidance.”

But before any of that was animated, there was the live-action filming that took place on a 70 meter-by-30 meter wave tank that director Ang Lee had specially built for the film. And there, said Westenhofer, “you had (star) Suraj Sharma on a boat with two guys in rubber rafts just chucking rubber fish at him as hard as they possibly can. It’s a good mixture of the low-tech and the high-tech.”

Of course, it wasn’t fish but previous experience with big cats that got Rhythm & Hues the assignment from Lee to go from lions to tigers and Pi. “He knew we had done the lion in the first Narnia movie. He asked, ‘Does a digital character look more or less real in 3D?’ We looked at each other and thought that was a pretty good question.”

As well as a leading one, since Lee had already made the decision at that point, in 2009, to shoot in 3D. “We took one of the shots and rendered it in stereo and said ‘Yeah, it gives it a little more presence and makes it more real.’” Good answer! “That was the start of our relationship with him.”

Although “Life of Pi” doesn’t exactly go for documentary-style realism, every effort was made to keep the tiger’s actions and reactions to what experts and trainers told them a creature would really do in those situations. Not having him spout any Aslan-style aphorisms was a nice start on that de-anthropomorphizing.

“We always strive for photorealism,” said De Boer – even when they’re working on a Narnia or Cats and Dogs. “Motion-wise we strive for perfect physicality and try to get that animal to behave as characteristically as possible – and then we always have to make them talk or dance or do something really weird, and the realism goes out the window and everybody knows that we were there. For me what was really cool about this movie is not only do we stick with the real animal but we also have to intercut it with a live-action animal, so that made the challenge for us that much bigger.”

Added Westenhofer, “We told the crew we wanted to work ourselves out of any recognition by making it look as real as possible.”

It was at least as big of a challenge, as far as Westenhofer was concerned, to make the digital waves match or amplify the real tank waves – and to create the film’s skies completely from scratch. “There’s not many films where we spend this much time on the water. I think ‘Old Man and the Sea’ harkens back! But even with ‘Titanic,’ you’ll see the water and then go inside.” For much of “Life of Pi,” “inside” amounts to a few furtive peeks under a tarp.

Hence what, on a project like this, becomes a fine line where digital effects providers are also, to some extent, taking over the role of cinematography and art direction. Going to work on filling up these blue-screen shots, the Rhythm & Hues people might well have been humming Bruce Springsteen’s “Empty Sky” to themselves.

“What I’m absolutely most proud of is with these visual effects is that we were given a blank slate for a lot of these shots,” Westenhofer told the audience. “We were given a boat in front of a blue screen, and it was the visual effects team who really were a lot of the creative innovators on the movie. Certainly it was Ang’s vision we were creating. But we’d start a shot, and though Ang absolutely knows what he wants, his communication is sometimes not as specific as you want. Instead of saying ‘I want a three-quarters cloudy sky with yellow over here and some blue,’ he’d say ‘I want a pensive sky.’

Or, ‘I want it to be operatic.’ So it would be our job to go translate that, and the team did a great job of supplying that.

“And Claudio Miranda did an awesome, awesome job on the cinematography, but a lot of the cinematography on the ocean is digital effects.”

Movies News Headlines – Yahoo! News

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U.S. designates Syria rebel group a terrorist organization

WASHINGTON — The Obama administration has formally designated a rebel group fighting in Syria as a terrorist organization in an effort to marginalize the Al Qaeda affiliate and reduce its chances of gaining power should the Syrian government fall.

Blacklisting Al Nusra Front is one of several diplomatic moves planned by the administration to try to maneuver moderate opposition groups into position to shape a pro-Western government if President Bashar Assad is ousted.

U.S diplomats are to take another step toward that end Wednesday at a meeting in Morocco, where the U.S. is expected to formally recognize a recently formed coalition of rebel groups — the National Coalition of Syrian Revolutionary and Opposition Forces — as Syria's legitimate government-in-waiting.

"We've made a decision that the Syrian opposition coalition is now inclusive enough, is reflective and representative enough of the Syrian population that we consider them the legitimate representative of the Syrian people in opposition to the Assad regime," President Obama told ABC News on Tuesday in advance of the Morocco meeting.

U.S. officials acknowledge, however, that the umbrella group has limited influence with the dozens of insurgent groups that have emerged in Syria's nearly 21-month-old civil war.

Most of those insurgent groups are believed to be secular in nature, but administration officials described Al Nusra Front as a wing of the group Al Qaeda in Iraq, which was responsible for the deaths of hundreds of Americans during the height of the Iraq war.

"Extremists fighting the Assad regime are still extremists, and they have no place in the transition that will come," a senior administration official, who declined to be identified because of the diplomatic sensitivity of the subject, said Tuesday.

U.S. officials said they hoped that blacklisting Al Nusra Front would persuade other opposition militias in Syria to steer clear of it and prompt Mideastern allies that may be arming its fighters to stop.

But some Syrian opposition leaders denied that Al Nusra Front is connected to Al Qaeda. Their comments raised the possibility that the U.S. move could backfire and increase rebel unhappiness with the United States. Some rebel commanders feel Washington has let them down by failing to provide military support.

Many militias respect Al Nusra Front's fighting ability and have gained access to captured weapons by collaborating with the group. At least 29 opposition groups have called for demonstrations Friday to show their support for Al Nusra Front.

An opposition activist in Morocco preparing for the meeting on Syria called the blacklisting a mistake that was supposedly based on intercepted communications between Al Nusra Front and Al Qaeda. Many of its fighters "have no links to Al Qaeda," said the activist, who asked not to be identified by name.

Farouk Tayfour, the deputy leader of the Muslim Brotherhood of Syria, said the designation was "very wrong and too hasty.... It is too early to categorize people inside Syria this way, considering the chaos and the gray atmosphere in the country," he told Reuters news service.

The terrorist designation will freeze the group's foreign assets and bar Americans from knowingly providing support to it. U.S. officials acknowledged that the group probably relies little, if at all, on American support.

But officials said the blacklisting will make it harder for known Al Nusra Front members to cross borders, which could hamper their operations, and will alert Syrians to a group supporting a radical Islamist ideology that most in the country don't share.

"We have called them out," a second senior administration official said.

paul.richter@latimes.com

Special correspondent Rima Marrouch, on assignment in Marrakech, Morocco, contributed to this report.

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Google Pins Gmail Outage on 'Routine Update' Gone Wrong

Monday’s Gmail outage didn’t last long — just 18 minutes, according to Google — but it disrupted an awful lot of users. When the popular webmail service went down around 9 a.m. PST, as much as 40 percent of all users were affected.

On Tuesday afternoon, Google published its explanation of what went wrong. The problem, the company said, was a “routine” update that caused Google’s load-balancing software — the code that helps split Google’s web workload between servers — to erroneously believe that some of Google’s data centers were unavailable.

Google operates nine of its own data centers all around the world and has built some of the most reliable computer systems on the planet. But as yesterday’s outage shows, even a big company like Google can mess up sometimes. Gmail seems to have been the hardest hit — between 8 percent and 40 percent of users were affected yesterday morning — but there were also problems with Google Drive, Google Chat, Google Calendar, and Google Play.

And remarkably, a combination of bugs in Google Sync and the company’s Chrome browser caused widespread crashes to the browser as well.

“The Google load balancers have a failsafe mechanism to prevent this type of failure from causing Google­wide service degradation, and they continued to route user traffic,” Google said in an incident report, prepared yesterday for Google Apps customers, and published on Google’s website today. “As a result, most Google services, such as Google Search, Maps, and AdWords, were unaffected. However, some services, including Gmail, that require specific data center information to efficiently route users’ requests, experienced a partial outage.”

The buggy software was rolled out between 8:45 a.m. and 9:13 a.m. PST, Google said.

Monitoring software picked up the problems at 9:06 am, and within seven minutes, Google started rolling back to the non-buggy load-balancing software. That roll-back was complete by 9:18 a.m.

In the future, Google plans to upgrade its load-balancing software to one data center before rolling it out worldwide, but that’s a bit of a tricky process. “The unique nature of load balancing systems makes this more difficult than with other software,” Google said in its report.

Google also plans to take another look at its internal processes “to ensure more timely updates to Google Apps Status Dashboard.” That’s the place where Google posts updates to customers when it has services outages such as yesterday’s events.

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Lawsuit claims A&E’s ‘Storage Wars’ show is rigged

LOS ANGELES (AP) — Some of the valuables found hidden in abandoned lockers on A&E’s “Storage Wars” have been added by producers to deceive viewers, a former cast member of the show claims in a lawsuit filed Tuesday.

David Hester‘s suit claims producers have added a BMW Mini and newspapers chronicling Elvis Presley‘s death to lockers in order to build drama for the show and that his complaints about the practices led to his firing.

Hester is seeking more than $ 750,000 in his wrongful termination, breach of contract and unfair business practices lawsuit. A&E Television Network declined comment, citing the pending lawsuit.

“Storage Wars” follows buyers who bid for abandoned storage lockers hoping to find valuables tucked inside.

“A&E regularly plants valuable items or memorabilia,” the lawsuit states. Hester’s suit claims he was fired from participating in the series’ fourth season after expressing concerns that manipulating the storage lockers for the sake of the show was illegal.

He claims that producers stopped adding items to his units after his initial complaints but continued the practice for other series participants. The lawsuit alleges entire units have been staged and the practice may violate a federal law intended to prevent viewers from being deceived when watching a show involving intellectual skills.

“Storage Wars” depicts buyers having only a few moments to look into an abandoned unit before deciding on whether to bid on it at auction. The lawsuit claims some of the auction footage on the show is staged.

Hester, known as “The Mogul” on the show, has been buying abandoned storage units and re-selling their contents for 26 years, according to the suit.

Nielsen Co. has ranked “Storage Wars” among cable television’s top-ranked shows several times since its 2010 debut.

Entertainment News Headlines – Yahoo! News

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Rate of Childhood Obesity Falls in Several Cities

Jessica Kourkounis for The New York Times

At William H. Ziegler Elementary in Northeast Philadelphia, students are getting acquainted with vegetables and healthy snacks.

PHILADELPHIA — After decades of rising childhood obesity rates, several American cities are reporting their first declines.

The trend has emerged in big cities like New York and Los Angeles, as well as smaller places like Anchorage, Alaska, and Kearney, Neb. The state of Mississippi has also registered a drop, but only among white students.

“It’s been nothing but bad news for 30 years, so the fact that we have any good news is a big story,” said Dr. Thomas Farley, the health commissioner in New York City, which reported a 5.5 percent decline in the number of obese schoolchildren from 2007 to 2011.

The drops are small, just 5 percent here in Philadelphia and 3 percent in Los Angeles. But experts say they are significant because they offer the first indication that the obesity epidemic, one of the nation’s most intractable health problems, may actually be reversing course.

The first dips — noted in a September report by the Robert Wood Johnson Foundation — were so surprising that some researchers did not believe them.

Deanna M. Hoelscher, a researcher at the University of Texas, who in 2010 recorded one of the earliest declines — among mostly poor Hispanic fourth graders in the El Paso area — did a double-take. “We reran the numbers a couple of times,” she said. “I kept saying, ‘Will you please check that again for me?’ ”

Researchers say they are not sure what is behind the declines. They may be an early sign of a national shift that is visible only in cities that routinely measure the height and weight of schoolchildren. The decline in Los Angeles, for instance, was for fifth, seventh and ninth graders — the grades that are measured each year — between 2005 and 2010. Nor is it clear whether the drops have more to do with fewer obese children entering school or currently enrolled children losing weight. But researchers note that declines occurred in cities that have had obesity reduction policies in place for a number of years.

Though obesity is now part of the national conversation, with aggressive advertising campaigns in major cities and a push by Michelle Obama, many scientists doubt that anti-obesity programs actually work. Individual efforts like one-time exercise programs have rarely produced results. Researchers say that it will take a broad set of policies applied systematically to effectively reverse the trend, a conclusion underscored by an Institute of Medicine report released in May.

Philadelphia has undertaken a broad assault on childhood obesity for years. Sugary drinks like sweetened iced tea, fruit punch and sports drinks started to disappear from school vending machines in 2004. A year later, new snack guidelines set calorie and fat limits, which reduced the size of snack foods like potato chips to single servings. By 2009, deep fryers were gone from cafeterias and whole milk had been replaced by one percent and skim.

Change has been slow. Schools made money on sugary drinks, and some set up rogue drink machines that had to be hunted down. Deep fat fryers, favored by school administrators who did not want to lose popular items like French fries, were unplugged only after Wayne T. Grasela, the head of food services for the school district, stopped buying oil to fill them.

But the message seems to be getting through, even if acting on it is daunting. Josh Monserrat, an eighth grader at John Welsh Elementary, uses words like “carbs,” and “portion size.” He is part of a student group that promotes healthy eating. He has even dressed as an orange to try to get other children to eat better. Still, he struggles with his own weight. He is 5-foot-3 but weighed nearly 200 pounds at his last doctor’s visit.

“I was thinking, ‘Wow, I’m obese for my age,’ ” said Josh, who is 13. “I set a goal for myself to lose 50 pounds.”

Nationally, about 17 percent of children under 20 are obese, or about 12.5 million people, according to the Centers for Disease Control and Prevention, which defines childhood obesity as a body mass index at or above the 95th percentile for children of the same age and sex. That rate, which has tripled since 1980, has leveled off in recent years but has remained at historical highs, and public health experts warn that it could bring long-term health risks.

Obese children are more likely to be obese as adults, creating a higher risk of heart disease and stroke. The American Cancer Society says that being overweight or obese is the culprit in one of seven cancer deaths. Diabetes in children is up by a fifth since 2000, according to federal data.

“I’m deeply worried about it,” said Francis S. Collins, the director of the National Institutes of Health, who added that obesity is “almost certain to result in a serious downturn in longevity based on the risks people are taking on.”

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Daily Stock Market Activity

Stocks rose on Tuesday, led by gains in technology companies, helping the Standard & Poor’s 500-stock index to end at its highest level since Election Day.

A 2.18 percent gain, to $541.39, in Apple’s stock lifted the Nasdaq composite index, as the company rebounded from a week in which investors took profits before a possible tax increase next year. Before Tuesday’s trading, Apple shares had lost 25 percent from an intraday high hit in September.

Stocks pared some gains by late afternoon as more news on the negotiations over a fiscal policy in Washington emerged. The Senate majority leader, Harry Reid, said it would be difficult to reach an agreement resolving tax increases and spending cuts before Christmas.

“There’s been a real explosion in anxiety over this thing,” said James Dailey, portfolio manager of Team Asset Strategy Fund in Harrisburg, Pa. “Because markets have become the way they are, you’ve got people just stepping back.”

The Dow Jones industrial average rose 78.56 points, or 0.6 percent, to 13,248.44.

The Standard & Poor’s 500-stock index was up 9.29 points, or 0.65 percent, to 1,427.84.

The Nasdaq composite index was up 35.34 points, or 1.18 percent, at 3,022.30.

Other major tech stocks also rose. Texas Instruments gained 4 percent, to $31.01, after raising its profit target late Monday. That helped other chip makers rally. The PHLX Semiconductor index was up 1.9 percent. Microsoft rose 1.41 percent, to $27.32.

Retailers like the luggage maker Tumi Holdings and Michael Kors Holding gained after a positive report from Goldman Sachs Equity Research. Tumi was up 4.73 percent, to $21.92, and Michael Kors gained 2.35 percent, reaching $50.92.

The discount retailers Dollar General and Family Dollar declined. Dollar General, down 7.8 percent, to $42.94, said it expected margins to be under pressure in 2013. Family Dollar shares dropped 8.36 percent, to $64.68.

The Treasury is selling its remaining stake in the insurer American International Group. Shares of AIG were up 5.7 percent at $35.26.

The Fed began a two-day policy-setting meeting on Tuesday. The central bank is expected to announce a new round of Treasury bond purchases when the meeting ends on Wednesday. They will replace its Operation Twist stimulus, which expires at the end of the year.

Interest rates were higher. The Treasury’s benchmark 10-year note fell 11/32, to 99 23/32, and the yield rose to 1.66 percent, from 1.62 percent late Monday.

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Appeals court orders removal of 100 digital billboards across L.A.

A digital billboard on Lincoln Blvd. in Venice. A panel ruled Monday that 100 of these digital billboards in Los Angeles must be taken down. (Ricardo DeAratanha / Los Angeles Times / December 10, 2012)

By David Zahniser

December 10, 2012, 4:01 p.m.

A three-judge panel on Monday ruled that roughly 100 digital billboards installed in Los Angeles under a 2006 legal settlement approved by the Los Angeles City Council must be removed.

The panel from the state's 2nd District Court of Appeal said sign companies CBS Outdoor and Clear Channel outdoor should not have been allowed to convert their existing billboards to electronic formats when existing laws prohibited such changes. "We do not see how the language could be plainer," the ruling states.

The panel instructed a lower court to order the removal of digital billboards already permitted under the agreement, many of which were on the Westside.

Dennis Hathaway, president of the Coalition to Ban Billboard Blight, hailed the ruling. "Needless to say, [it's] a very happy day for us," he said in an email.

Of the billboards that are at issue, 79 are operated by Clear Channel. The remainder were owned by CBS.
CBS and Clear Channel sued the city nearly a decade ago, seeking to block implementation of an ordinance banning the installation of new billboards except in special sign districts. In 2006, the council backed a settlement with the two companies that allowed them to convert up to 840 existing billboards to electronic formats.

Summit Outdoor, a smaller sign company, went to court to invalidate the agreement, calling it a sweetheart deal.

A judge sided with Summit, calling the agreement "poison" and blocking the city from allowing new digital signs to go up. But he refused to order the removal of the 100 or so billboards that had already been converted to digital formats under the 2006 settlement.

"It's fantastic," said Barbara Broide, president of the Westwood South of Santa Monica Blvd. Homeowners Assn., which filed an amicus brief in support of Summit Media's lawsuit. "I think this is a hard-fought win. This city should be grateful to Summit for having brought the suit."

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