Wall Street bounces back after sell-off; results a boost

NEW YORK (Reuters) - Stocks climbed on Tuesday, recovering a day after the market's biggest sell-off since November, as stronger-than-expected earnings brightened the profit picture.

Dell Inc's stock rose after the world's No. 3 computer maker agreed to be taken private in a $24.4 billion deal, the largest leveraged buyout since the 2008-2009 financial crisis. The stock gained 1.1 percent to $13.42.

All 10 S&P sectors were higher, and the S&P 500 and Nasdaq gained more than 1 percent.

The market's bounce follows a sell-off on Monday that gave the S&P 500 its biggest percentage decline since mid-November. The benchmark remains up 6 percent since the start of the year and is less than 4 percent away from its all-time closing high of 1,565.15 from October 2007.

Analysts said fourth-quarter results have been among factors helping to boost stocks. On Tuesday, Archer Daniels Midland reported revenue and adjusted fourth-quarter earnings that beat expectations, boosted by strong global demand for oilseeds. Shares rose 3.3 percent to $29.38.

"There's not a huge upside surprise by any means, but we're definitely seeing slightly better-than-expected earnings overall," said Bryant Evans, portfolio manager at Cozad Asset Management, in Champaign, Illinois.

The Dow Jones industrial average <.dji> was up 99.22 points, or 0.71 percent, at 13,979.30. The Standard & Poor's 500 Index <.spx> was up 15.58 points, or 1.04 percent, at 1,511.29. The Nasdaq Composite Index <.ixic> was up 40.41 points, or 1.29 percent, at 3,171.58.

The market shot higher at the start of the year after U.S. lawmakers were able to come to a last-minute agreement to avoid a national "fiscal cliff," but questions on spending cuts remain.

President Barack Obama on Tuesday urged Congress to pass a small package of spending cuts and tax reforms. Though the plan was quickly rebuffed by Republican leaders, investors are looking for an agreement.

"I think there's some hopefulness out there that a reasonable compromise will be made," Evans said.

Also in earnings, Estée Lauder Cos Inc reported a higher quarterly profit and raised its full-year profit forecast. The stock rose 6 percent to $64.71.

With results in from more than half of the S&P 500 companies, 69 percent have beaten profit expectations, compared with the 62 percent average since 1994 and the 65 percent average over the past four quarters. Sixty-six percent of companies have beaten on revenue.

Fourth-quarter earnings for S&P 500 companies are expected to rise 4.5 percent, according to the data, above the 1.9 percent forecast at the start of earnings season.

On the down side, McGraw-Hill shares slumped 10.7 percent to $44.92 after the U.S. Justice Department filed a civil lawsuit seeking $5 billion over mortgage bond ratings. Standard & Poor's, a McGraw Hill unit, was accused of inflating ratings and understating risk out of a desire to gain more business from investment banks.

On Monday, McGraw-Hill stock suffered its worst one-day decline since the 1987 market crash.

Volume was roughly 6.7 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.

Advancers outpaced decliners on the NYSE by nearly 11 to 4 and on the Nasdaq by about 3 to 1.

(Editing by Kenneth Barry and Nick Zieminski)

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The Lede Blog: Malala Yousafzai, Pakistani Girl Shot by Taliban Militants, Speaks in New Videos

Last Updated, 4:54 p.m. Speaking on camera for the first time since she survived an assassination attempt by the Pakistani Taliban last year, the young activist Malala Yousafzai began with the words, “Today you can see that I’m alive.” The 15-year-old, who was shot in the head as she left school in Pakistan’s Swat Valley four months ago, promised that she would continue to be an outspoken advocate of the right for “every girl, every child, to be educated.”

In the brief statement, the young advocate attributed her survival to the prayers of her supporters and urged them to contribute to a fund established in her name to further the cause of education for girls. “Because of these prayers, God has given me this new life,” Ms. Yousafzai said. “And this is a second life; this is a new life. And I want to serve, I want to serve the people.”

A video statement from Malala Yousafzai, a young Pakistani activist who was shot in the head by Taliban militants.

The English-language statement was recorded just before Ms. Yousafzai underwent surgery at the Queen Elizabeth Hospital in Birmingham, England, over the weekend to repair damage to her skull caused by the bullet fired into her head at point-blank range in October.

On Monday, the hospital released more video of the young patient, speaking to one of her doctors after the five-hour operation to reconstruct her skull and implant a device to restore hearing to her left ear.

Video of Malala Yousafzai speaking to a doctor in Birmingham, England after an operation on Saturday.

“I’m feeling alright and I’m happy that the operations, both the operations, were successful,” she told Dr. Mav Manji, a critical care specialist at Queen Elizabeth Hospital. Asked about the future, she said, “My mission is the same, to help people, and I will do that.” She also expressed her gratitude to the doctors in Pakistan and Britain who cared for her. “God gave me a new life,” she said, “because of the prayers of people and because of the talent of doctors.”

At a news conference on Monday, Dr. Anwen White, the neurosurgeon who led the reconstructive surgery, and Dr. Dave Rosser, the hospital’s medical director, explained that the titanium cranioplasty, which involved repairing the missing area of her skull with a specially molded titanium plate, “went very well.” (Video of the news conference was posted online by Britain’s Channel 4 News and the hospital uploaded images of the surgery in progress to YouTube.)

An update posted on the hospital’s Web site explained that, after the skull surgery, “Malala then had a cochlear implant fitted – a small, complex electronic device that provides a sense of sound to someone who is profoundly deaf or severely hard of hearing. The cochlear implant is to restore hearing to her left ear after she was left deaf in that ear by the bullet.”

As Fatima Manji of Britain’s Channel 4 News reports, the activist also recorded statements in Urdu and Pashto, languages spoken in Pakistan and Afghanistan. In the Urdu version, Ms. Manji notes, the girl said, “I would be willing to sacrifice myself again.”

#Malala has released her first public statement on camera #c4news http://t.co/2ZJKCwCO

— Fatima Manji (@fatimamanji) 4 Feb 13

In her Urdu statement #Malala says she is willing to “sacrifice herself again” so that all children can get an education. #c4news

— Fatima Manji (@fatimamanji) 4 Feb 13

The video statement was produced for the Vital Voices Global Partnership, a nongovernmental organization based in Washington “that identifies, trains and empowers emerging women leaders,” which will administer the new “Malala Fund,” in cooperation with the young activist and her family.

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Sean Lowe: Three Reasons He Makes The Bachelor Special

TV Watch

The Bachelor

By Rennie Dyball

02/04/2013 at 06:00 PM EST

What is it about this season of The Bachelor?

For the past few installations, I've watched with just a passing interest, armed with my iPad so I can enjoy other diversions during the boring or painfully awkward Bachelor and Bachelorette dates.

The TV franchise has been around for so long that I was almost watching out of obligation ... I've spent so much of my life following these people and their televised quests for love that I've got to keep up for tradition's sake alone.

But this season is different. I'm excited for Monday nights and find myself watching without any outside distractions. I've had several girlfriends tell me they feel the same way – for some, after nearly deciding to stop watching the series entirely, they're excited about it all over again.

We've got Sean Lowe to thank for that.

Here's why I think the 29-year-old is a rare breed of Bachelor who's breathed new life into the long-running series:

1. He Seems Like a Truly Genuine Guy
In all honesty, Sean didn't wow me on Emily Maynard's season of The Bachelorette. I found him to be a little dull (sorry, Sean!) and not entirely believable. So I didn't expect to be thrilled by his turn handing out the roses. But week after week, I find myself really believing in his assertions that he's look for lasting love.

I mean, really, don't they all say that? But from night one, he's been straight up with his bachelorettes about his feelings, and he's just got that intangible "something" about him – you can't help but root for this guy. Even my often-jaded colleagues who've met him in person were impressed!

2. He's Easily Smitten
Maybe this makes him more endearing, or maybe it's indicative of the dramatics to come when he'll need to whittle down the list. Either way, I'm so tickled by the fact that after the majority of dates, Sean is just smitten by a new woman. So far, he seems to be falling for AshLee, Desiree, Lesley, Lindsay, Sarah, Selma and, of course, Tierra.

It's refreshing and sweet, not to mention believable ... What guy wouldn't fall for a group of beautiful women on budget-less dates?

3. He's Got Quite the Cast of Costars
Bravo to the casting department on this one. The mix of women vying for Sean's affections is diverse, dramatic and destined for medical emergencies. (Chris Harrison promises more ambulances this season!)

And did anyone else find last week's kiss-less date with Selma incredibly hot? They didn't need to get their lips involved for viewers to feel the intense heat between them. So this week, call me a marketer's dream: Two Bachelor episodes in the next two nights? Sold. Thanks, Sean.

This week's double episode of The Bachelor will air Monday (8 p.m. ET) and Tuesday at (9 p.m. ET) on ABC.

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Bullying study: It does get better for gay teens

CHICAGO (AP) — It really does get better for gay and bisexual teens when it comes to being bullied, although young gay men have it worse than their lesbian peers, according to the first long-term scientific evidence on how the problem changes over time.

The seven-year study involved more than 4,000 teens in England who were questioned yearly through 2010, until they were 19 and 20 years old. At the start, just over half of the 187 gay, lesbian and bisexual teens said they had been bullied; by 2010 that dropped to 9 percent of gay and bisexual boys and 6 percent of lesbian and bisexual girls.

The researchers said the same results likely would be found in the United States.

In both countries, a "sea change" in cultural acceptance of gays and growing intolerance for bullying occurred during the study years, which partly explains the results, said study co-author Ian Rivers, a psychologist and professor of human development at Brunel University in London.

That includes a government mandate in England that schools work to prevent bullying, and changes in the United States permitting same-sex marriage in several states.

In 2010, syndicated columnist Dan Savage launched the "It Gets Better" video project to encourage bullied gay teens. It was prompted by widely publicized suicides of young gays, and includes videos from politicians and celebrities.

"Bullying tends to decline with age regardless of sexual orientation and gender," and the study confirms that, said co-author Joseph Robinson, a researcher and assistant professor of educational psychology at the University of Illinois in Urbana-Champaign. "In absolute terms, this would suggest that yes, it gets better."

The study appears online Monday in the journal Pediatrics.

Eliza Byard, executive director of the Gay, Lesbian & Straight Education Network, said the results mirror surveys by her anti-bullying advocacy group that show bullying is more common in U.S. middle schools than in high schools.

But the researchers said their results show the situation is more nuanced for young gay men.

In the first years of the study, gay boys and girls were almost twice as likely to be bullied as their straight peers. By the last year, bullying dropped overall and was at about the same level for lesbians and straight girls. But the difference between men got worse by ages 19 and 20, with gay young men almost four times more likely than their straight peers to be bullied.

The mixed results for young gay men may reflect the fact that masculine tendencies in girls and women are more culturally acceptable than femininity in boys and men, Robinson said.

Savage, who was not involved in the study, agreed.

"A lot of the disgust that people feel when you bring up homosexuality ... centers around gay male sexuality," Savage said. "There's more of a comfort level" around gay women, he said.

Kendall Johnson, 21, a junior theater major at the University of Illinois, said he was bullied for being gay in high school, mostly when he brought boyfriends to school dances or football games.

"One year at prom, I had a guy tell us that we were disgusting and he didn't want to see us dancing anymore," Johnson said. A football player and the president of the drama club intervened on his behalf, he recalled.

Johnson hasn't been bullied in college, but he said that's partly because he hangs out with the theater crowd and avoids the fraternity scene. Still, he agreed, that it generally gets better for gays as they mature.

"As you grow older, you become more accepting of yourself," Johnson said.

___

Online:

Pediatrics: http://www.pediatrics.org

It Gets Better: http://www.itgetsbetter.org

___

AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

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S&P 500 posts worst day since November; McGraw-Hill shares sink

NEW YORK (Reuters) - Stocks slid on Monday, giving the S&P 500 its worst day since November, as renewed worries about the euro zone crisis caused the market to pull back from recent gains.

Shares of McGraw-Hill shed 13.8 percent to $50.30, their worst daily percentage decline since the October 1987 market crash, after news the U.S. Justice Department plans to sue Standard & Poor's, a unit of McGraw-Hill, over its mortgage bond ratings. It would be the first such federal action against a credit rating agency related to the recent financial crisis.

Chevron and Wal-Mart were among the biggest drags on the Dow after analyst downgrades, and all 10 S&P 500 sectors were lower. The losses follow Friday's market climb that left the S&P 500 at a five-year high and the Dow above 14,000.

"The market is extended and due for a pullback. I think people are looking for an excuse to make sales, and there (is) the concern coming from Europe," said Michael James, senior trader at Wedbush Morgan in Los Angeles.

Spanish and Italian bond yields rose, renewing worries about the euro zone's sovereign debt crisis. Spain's prime minister faced calls to resign over a corruption scandal, while a probe of alleged misconduct involving an Italian bank was expected to widen three weeks before a national election.

Adding to market pressure, data from the U.S. Commerce Department showed overall factory orders for December were below economists' expectations.

The Dow Jones industrial average <.dji> was down 129.71 points, or 0.93 percent, at 13,880.08. The Standard & Poor's 500 Index <.spx> was down 17.46 points, or 1.15 percent, at 1,495.71. The Nasdaq Composite Index <.ixic> was down 47.93 points, or 1.51 percent, at 3,131.17.

With 18.7 billion shares traded, it was the busiest day on record for McGraw-Hill shares. Shares of ratings agency Moody's Corp fell 10.7 percent at $49.45, their worst one-day drop since August 2011.

The benchmark S&P 500 rose on Friday, leaving it roughly 60 points away from its all-time intraday high of 1,576.09, while the Dow's march above 14,000 was the highest for the index since October 2007.

The S&P index remains up about 5 percent for the year, with nearly half of the gains coming after U.S. legislators temporarily sidestepped the "fiscal cliff" of automatic tax increases and spending cuts.

The CBOE Volatility index VIX <.vix>, Wall Street's so-called fear gauge, jumped 13.7 percent.

Chevron dipped 1.1 percent to $115.20 after UBS cut its rating to neutral, while Wal-Mart Stores Inc shed 1.2 percent to $69.63 after JP Morgan lowered its rating on the world's largest retailer and reduced its price target.

Shares of household products company Clorox rose 0.7 percent to $79.72 after quarterly profit beat analysts' estimates as a severe flu season boosted sales of disinfecting wipes.

According to Thomson Reuters data, of the 256 companies in the S&P 500 that have reported earnings through Monday morning, 68.4 percent have reported earnings above analyst expectations, compared with the 62 percent average since 1994 and the 65 percent average over the past four quarters.

S&P 500 fourth-quarter earnings are expected to rise 4.4 percent, according to the data. That estimate is above the 1.9 percent forecast at the start of earnings season, but well below the 9.9 percent forecast on October 1.

In deal news, software maker Oracle Corp agreed to buy network equipment company Acme Packet Inc for $1.7 billion net of cash. Shares of Oracle were down 3 percent at $35.13 while Acme Packet shot up 23.7 percent to $29.59.

Shares of Herbalife Ltd ended up 1.3 percent at $35.54, recovering its losses ahead of the close. The New York Post reported the seller of weight loss products is facing a probe by the Federal Trade Commission.

Volume was roughly 6.3 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.

Decliners outpaced advancers on the NYSE by nearly 4 to 1 and on the Nasdaq also by about 4 to 1.

(Editing by Kenneth Barry and Nick Zieminski)

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IHT Rendezvous: The Face of America's Illegal Immigration

WASHINGTON — In my latest Letter From Washington, I write about the “Kumbaya” moment that immigration reform seems to be enjoying — and the certainty that it will not last as the hard work of writing laws gets underway. But who are the illegal immigrants?

Page Two

Posts written by the IHT’s Page Two columnists.

The U.S. Department of Homeland Security estimates that in 2011, the last year for which there are estimates, 6.8 million of the 11.5 million undocumented immigrants in the United States were from Mexico. The Pew Hispanic Center, which often has the most reliable immigration data, says the number has dropped to 6.1 million, from 7 million five years before.

The combined effects of the economic slowdown in the United States, with fewer jobs, and much more aggressive border-control efforts and stepped-up deportations by the Obama administration explain the decline.

After Mexico, El Salvador, Guatemala and Honduras are the countries of origin of the largest numbers of unauthorized immigrants, with more than 1.5 million combined, according to the Homeland Security figures. Next are four Asian countries — China, the Philippines, India and South Korea — which accounted for a little more than 1 million between them.

Not surprisingly, the government estimates that the majority of these immigrants live in California, Texas and Florida. Next, however, are two non-border states: New York and Illinois, with more than 500,000 each.

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BlackBerry searching high and low in India, Indonesia

NEW DELHI/JAKARTA (Reuters) – Research in Motion Ltd must chart a tough course in its two key emerging markets of India and Indonesia: quickly launch cheaper handsets to woo lower-end subscribers while restoring its tattered brand among the countries’ status-conscious.

The company, which is rebranding itself BlackBerry after its best-known smartphone, has won millions of followers in these two Asian countries, mostly by selling cheaper handsets and offering service packages as low as $ 2 a month. So it’s unlikely that the Z10 model introduced last week, which operators in India expect to sell for around $ 750, will appeal to the users it must reach if it is to build market share.

“It’s clear that not only are India and Indonesia among the largest markets but in terms of future smartphone growth, they’re amongst the ones with the most potential,” said Melissa Chau, senior research manager at technology research group IDC in Singapore. “But the two devices that have been launched are not well aligned to the needs of these two markets.”

While the company does not break down its sales by country, data from IDC shows that Indonesia was BlackBerry’s biggest market outside the United States and Britain last year, while India was ninth.

ABI Research said that BlackBerry accounted for nearly half of Indonesia’s smartphone shipments in 2012. Compare this with a global share of just 5.3 percent. In India, the world’s second-largest mobile phone market, BlackBerry ranks third after Samsung Electronics Co Ltd and Nokia.

In both countries, young people are drawn by low-cost handsets allowing them to communicate for free on the BlackBerry Messaging Service (BBM). Almost all carriers offer services for the device. Indonesia’s XL Axiata Tbk PT, for example, saw a 45 percent jump in BlackBerry subscribers last financial year after offering packages for as little as 20 cents per day.

But this picture is changing rapidly.

The rise of messaging services such as WhatsApp that are not confined to any single operating system and the proliferation of cheap Android devices have diluted the BlackBerry’s appeal.

Mickey Nayoan, a 32-year old product designer in Jakarta, swapped his BlackBerry for a Samsung phone six months ago and isn’t missing it.

“I survived without BlackBerry because there’s WhatsApp,” he said. “More and more people use it and so I don’t need BBM anymore.”

At the same time, higher-end users have deserted what is increasingly seen as a low-end brand.

“When they came up with the cheaper versions, that took the allure off the brand for many Indonesians who are very status-conscious,” said Ong Hock Chuan, a Jakarta-based communications consultant.

ANDROID MAKES INROADS

While BlackBerry remained the number one smartphone brand in Indonesia in the second quarter of last year, the most recent period for which rankings were available, Android overtook it as the most popular operating system, according to IDC.

IDC said when it released the data last September that this was partly because of delays in the launch of the BlackBerry 10. The Z10 is likely to launch in the second half of February in India and in late March in Indonesia.

Data from StatCounter, a website which estimates mobile web traffic, shows BlackBerry’s share in Indonesia falling from about 20 percent in 2011 to about 5 percent last year.

On the other hand, carriers and users say, glitches with BlackBerry services and a perception that the brand has lost some of its luster mean that it will be hard to sell the Z10 and a keyboard model, the Q10, even to better-off users.

“It really depends on how BlackBerry 10 performs. If it can fix problems of previous BlackBerry (services) it could succeed in the market,” said Hasnul Suhaimi, CEO of Indonesia’s XL Axiata. But for now, he said, “it will just be about people swapping out existing devices.”

To reverse this, BlackBerry must announce cheaper devices quickly, analysts say. BlackBerry launched handsets designed on its old platform for just such users in India and Indonesia last year.

“The Z10… is obviously a high-end product and India is not a market at that price point,” said Anshul Gupta, an industry analyst at technology advisory firm Gartner in Mumbai. “We don’t know exactly what will be coming here, but I would expect them to launch different models in India which would give them more traction.”

(Additional reporting by Henry Foy in Mumbai and Jeremy Wagstaff in Singapore; Writing by Jeremy Wagstaff; Editing by Emily Kaiser)

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5 Most Paw-Dorable Moments from the Puppy Bowl

People Pets

By Alison Schwartz

02/03/2013 at 05:15 PM EST

Rooting for the Baltimore Ravens? Hoping the San Francisco 49ers win big?

Well, here's something we can all root for: puppies. Puppies chasing balls. Puppies chasing each other. Puppies captured chasing balls and each other in slow-motion. (Okay, enough said.)

If it's not the biggest game of the day, the Puppy Bowl IX, paws down, is certainly the most fur-ocious. But it gets even sweeter: The pigskin-loving pooches are all rescues.

In case you (and your four-legged friends) missed all the paw-dorable action, we're bringing you the view from the field. (Desktop users can scroll through the photos at the top.)

1. As Good as Gold
Sometimes, you go for the touchdown. Sometimes, you just sit down, like this golden retriever pup.

2. Friendly Competition
Did the referee site these canines for excessive ruff play? We thought so.

3. Good Sport
Yup, ref Dan Schachner definitely needs to knock off at least 10 yards for excessive cuteness right here.

4. Playing the Field
At the Puppy Bowl, it's important that you always put your best paw forward.

5. Group Huddle
Er, cuddle? This is way better than that Vince Lombardi Trophy thingy.

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New rules aim to get rid of junk foods in schools

WASHINGTON (AP) — Most candy, high-calorie drinks and greasy meals could soon be on a food blacklist in the nation's schools.

For the first time, the government is proposing broad new standards to make sure all foods sold in schools are more healthful.

Under the new rules the Agriculture Department proposed Friday, foods like fatty chips, snack cakes, nachos and mozzarella sticks would be taken out of lunch lines and vending machines. In their place would be foods like baked chips, trail mix, diet sodas, lower-calorie sports drinks and low-fat hamburgers.

The rules, required under a child nutrition law passed by Congress in 2010, are part of the government's effort to combat childhood obesity. While many schools already have improved their lunch menus and vending machine choices, others still are selling high-fat, high-calorie foods.

Under the proposal, the Agriculture Department would set fat, calorie, sugar and sodium limits on almost all foods sold in schools. Current standards already regulate the nutritional content of school breakfasts and lunches that are subsidized by the federal government, but most lunchrooms also have "a la carte" lines that sell other foods. Food sold through vending machines and in other ways outside the lunchroom has never before been federally regulated.

"Parents and teachers work hard to instill healthy eating habits in our kids, and these efforts should be supported when kids walk through the schoolhouse door," Agriculture Secretary Tom Vilsack said.

Most snacks sold in school would have to have less than 200 calories. Elementary and middle schools could sell only water, low-fat milk or 100 percent fruit or vegetable juice. High schools could sell some sports drinks, diet sodas and iced teas, but the calories would be limited. Drinks would be limited to 12-ounce portions in middle schools and to 8-ounce portions in elementary schools.

The standards will cover vending machines, the "a la carte" lunch lines, snack bars and any other foods regularly sold around school. They would not apply to in-school fundraisers or bake sales, though states have the power to regulate them. The new guidelines also would not apply to after-school concessions at school games or theater events, goodies brought from home for classroom celebrations, or anything students bring for their own personal consumption.

The new rules are the latest in a long list of changes designed to make foods served in schools more healthful and accessible. Nutritional guidelines for the subsidized lunches were revised last year and put in place last fall. The 2010 child nutrition law also provided more money for schools to serve free and reduced-cost lunches and required more meals to be served to hungry kids.

Sen. Tom Harkin, D-Iowa, has been working for two decades to take junk foods out of schools. He calls the availability of unhealthful foods around campus a "loophole" that undermines the taxpayer money that helps pay for the healthier subsidized lunches.

"USDA's proposed nutrition standards are a critical step in closing that loophole and in ensuring that our schools are places that nurture not just the minds of American children but their bodies as well," Harkin said.

Last year's rules faced criticism from some conservatives, including some Republicans in Congress, who said the government shouldn't be telling kids what to eat. Mindful of that backlash, the Agriculture Department exempted in-school fundraisers from federal regulation and proposed different options for some parts of the rule, including the calorie limits for drinks in high schools, which would be limited to either 60 calories or 75 calories in a 12-ounce portion.

The department also has shown a willingness to work with schools to resolve complaints that some new requirements are hard to meet. Last year, for example, the government relaxed some limits on meats and grains in subsidized lunches after school nutritionists said they weren't working.

Schools, the food industry, interest groups and other critics or supporters of the new proposal will have 60 days to comment and suggest changes. A final rule could be in place as soon as the 2014 school year.

Margo Wootan, a nutrition lobbyist for the Center for Science in the Public Interest, said surveys by her organization show that most parents want changes in the lunchroom.

"Parents aren't going to have to worry that kids are using their lunch money to buy candy bars and a Gatorade instead of a healthy school lunch," she said.

The food industry has been onboard with many of the changes, and several companies worked with Congress on the child nutrition law two years ago. Major beverage companies have already agreed to take the most caloric sodas out of schools. But those same companies, including Coca-Cola and PepsiCo, also sell many of the non-soda options, like sports drinks, and have lobbied to keep them in vending machines.

A spokeswoman for the American Beverage Association, which represents the soda companies, says they already have greatly reduced the number of calories that kids are consuming at school by pulling out the high-calorie sodas.

___

Follow Mary Clare Jalonick on Twitter at http://twitter.com/mcjalonick

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Marxist Group Claims Attack on Embassy in Turkey

ISTANBUL — A Marxist group with a history of political violence in Turkey claimed responsibility on Saturday for a suicide bombing at the American Embassy in Ankara the day before, releasing a statement calling the United States “the murderer of the peoples of the world.”

The statement, which also denounced American foreign policy, was released by the Revolutionary People’s Liberation Party-Front, and a translation was distributed by the SITE Intelligence Group, which monitors the communications of extremist groups. The message, which was posted on a Web site that has previously carried statements from the group, condemned Turkey’s policy of supporting Syrian rebels fighting the government of President Bashar al-Assad and cooperation with the United States.

After conducting DNA tests, the Turkish authorities on Saturday identified the man who detonated himself at the embassy, killing himself and a Turkish embassy guard, as Ecevit Sanli, 40, also known as Alisan Sanli. Mr. Sanli was a convicted terrorist who had twice attacked government facilities in Istanbul but was released from prison under an amnesty program. Earlier Saturday, officials in the Black Sea town of Ordu said he was a resident.

The Ankara police said they had detained three people thought to have helped Mr. Sanli and had found a handgun linked to the militant group. They also released security footage from the embassy in which Mr. Sanli was shown pretending to be a courier.

The statement by the group included two photographs of Mr. Sanli. In one, he is holding an assault rifle, and a banner bearing the hammer-and-sickle symbol of communism is behind him.

The attack, coming in the wake of the attack on an American diplomatic mission y in Benghazi, Libya, by Islamic extremists in September, initially raised fears that it was the work of jihadists. That the bomber has ties to a relatively minor Marxist group is likely to challenge assumptions about the nature of international terrorism and the risks to American interests abroad. American officials, however, have not confirmed the identity of the attacker or a motive, and the United States plans to investigate.

In a statement on Saturday, Ordu officials said Mr. Sanli spent four years in prison after being arrested in 1997 for attacking a military hostel and police station in Istanbul. He was released in 2001 under an amnesty program for inmates with medical conditions, Muammer Guler, the interior minister, said. Mr. Sanli reportedly had Wernicke-Korsakoff syndrome, a brain disorder caused by malnutrition that he acquired during a jailhouse hunger strike.

The authorities said Mr. Sanli lobbed a hand grenade during Friday’s attack just before detonating his explosives-packed vest, suggesting that there were actually two explosions.

The Turkish newspaper Hurriyet reported that Mr. Sanli had fled to Germany after being released from prison, and according to the semiofficial Anatolian News Agency, returned to Turkey illegally only a few days before the attack by taking a boat from a Greek island across the Aegean.

The group has struck American and other Western targets in Turkey before, including during the gulf war, and in its statement, the group condemned NATO’s recent deployment of Patriot missile batteries in southern Turkey to protect against cross-border strikes from Syria.

In a report published several days before the bombing, Soner Cagaptay, director of the Turkish research program at the Washington Institute for Near East Policy, warned that the country’s support of Syrian rebels was rallying Turkey’s extreme left.

“The country’s political landscape still bears vestiges of violent leftist movements from the 1970s, as well as deeply anti-American ultranationalism,” he wrote.

This article has been revised to reflect the following correction:

Correction: February 2, 2013

An earlier version of this article misstated, based on information supplied by the authorities, the year when Ecevit Sanli was released from prison. It was 2001, not 2002.

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