Riots to Protest Death Sentence Enter 3rd Day in Bangladesh

Associated Press

A car burned in Dhaka, Bangladesh, on Saturday. Unrest continued after the leader of an Islamic party was sentenced to death.

DHAKA, Bangladesh (AP) — Demonstrators protesting the death penalty given to an Islamic political party leader clashed with Bangladeshi security forces for a third straight day on Saturday, killing two people and injuring about a dozen, the police said.

Delawar Hossain Sayedee, one of the top leaders of Jamaat-e-Islami, the country’s largest Islamic party, was sentenced to death on Thursday by a war crimes tribunal for atrocities committed during Bangladesh’s 1971 war of separation from Pakistan. The sentence set off rioting across the country, killing at least 46 people, including the two in the latest fighting, the authorities said.

Mr. Sayedee, 73, is the third defendant to be convicted by the tribunal, which was set up in 2010 by Prime Minister Sheikh Hasina’s government. He was accused of involvement in looting and burning villages, raping women and forcing people to convert to Islam.

An additional seven top leaders of Jamaat, including its chief, Matiur Rahman Nizami, are on trial facing war crimes charges.

Jamaat campaigned against Bangladesh’s nine-month war of independence and formed some auxiliary forces to help the Pakistani troops, but it has denied committing atrocities.

Bangladesh says that during the war, three million people were killed, 200,000 women were raped and millions of others were forced to flee the country.

On Saturday, security forces used tear gas to stop Jamaat supporters from smashing vehicles and blocking roads in Chittagong district, the police said. The area is 135 miles southeast of Dhaka, the capital.

Two men were killed and about a dozen were injured in the fighting, a local police official said, speaking on the condition of anonymity because he was not authorized to speak to the news media.

Dhaka’s private television stations, Ekattor TV and Somoy TV, reported that Jamaat supporters had erected roadblocks and attacked the homes of government supporters in some areas.

Jamaat is an ally of Bangladesh’s main opposition party, the Bangladesh Nationalist Party, which is led by former Prime Minister Khaleda Zia, and was a partner in Ms. Zia’s government from 2001 to 2006.

Ms. Zia says the war crimes trials are politically motivated to prosecute the opposition, an allegation the government rejects.

Jamaat and Ms. Zia’s party have called for a three-day nationwide general strike starting on Sunday.

Read More..

Jen & Justin: Why They Can't Wait to Wed!

By Michelle Tauber

03/02/2013 at 03:00 PM EST

Here's the thing about being Jennifer Aniston and being in love: The universe is invested. On Feb. 24 the star hit the red carpet in scarlet Valentino, her fiancé, Justin Theroux, by her side.

Flashes shimmered, fans roared, and the pair ducked into Hollywood's Dolby Theatre to take in the show. But there, the girl everyone presumes lives next door (who knew we all owned mansions?) was confronted by a friendly but curious employee who boldly asked That Question: Are you pregnant?

"No, I'm not!" replied Aniston, laughing politely. But, "I feel great," she told PEOPLE later that evening. "Wonderful!"

And on the outside? Forget about it. "She looks the greatest she possibly could," says Chris McMillan, her old pal and partner in her new hair-care line Living Proof. "Look at where she is in her life."

There's the man. There's that ring. There's a slate of films and new beauty ventures, renovating a $21 million L.A. estate in hopes of soon "normalizing and nesting," as she recently told PEOPLE, and, yes, planning a wedding.

With her film, based on an Elmore Leonard novel, set to wrap in Connecticut on March 8, "Jen and Justin have a date" set for soon after, says a source close to the actress, noting that the twosome have designed their wedding bands and Aniston has a dress in mind. "It will be a small affair with their closest friends." Likely among them: Aniston BFFs Courteney Cox, Chelsea Handler and Mandy Ingber, all of whom headed to New York to celebrate the actress's 44th birthday at the Greenwich Hotel on Feb. 11.

The bride-to-be "is crazy about Justin and can't wait to be his wife," says the source. "She plans on privately changing her name to
Theroux. She likes the way it sounds and jokes that [Jennifer Theroux] sounds very posh."

Read More..

With record highs in sight, stocks face roadblocks

NEW YORK (Reuters) - If Wall Street needs to climb a wall of worry, it will have plenty of opportunity next week.

Major U.S. stock indexes will make another attempt at reaching all-time records, but the fitful pace that has dominated trading is likely to continue. Next Friday's unemployment report and the hefty spending cuts that look like they about to take effect will be at the forefront.

The importance of whether equities can reach and sustain those highs is more than Wall Street's usual fixation on numbers with psychological significance. Breaking through to uncharted territory is seen as a test of investors' faith in the rally.

"It's very significant," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

"The thinking is, there's just not enough there for an extended bull run," he said. "If we do break through (record highs), then maybe the charts and price action are telling us there's something better ahead."

Flare-ups in the euro zone's sovereign debt crisis and next Friday's report on the U.S. labor market could jostle the market, though U.S. job indicators have generally been trending in a positive direction.

Small- and mid-cap stocks hit lifetime highs in February. Now the Dow Jones industrial average <.dji> and the S&P 500 <.spx> are racing each other to the top. The Dow, made up of 30 stocks, is about 75 points - less than 1 percent - away from its record close of 14,164.53, which it hit on October 9, 2007. The broader S&P is still 3 percent away from its closing high of 1,565.15, also reached on October 9, 2007.

The advantage may be in the Dow's court. So far in 2013, it has gained 7.5 percent, beating the S&P 500 by about 1 percent.

THE RALLY AND THE REALITY CHECK

The Dow's relative strength owes much to its unique make-up and calculation, as well as to investors' recent preference for buying value stocks likely to generate steady reliable gains, rather than growth stocks.

But the more defensive stance illustrates how stock buyers are getting concerned about this year's rally. While investors don't want to miss out on gains, they're picking up companies that are less likely to decline as much as high-flying names - if a market correction comes.

The Russell Value Index <.rav> is up 7.6 percent for the year so far, outpacing the Russell Growth Index's <.rag> 5.7 percent rise. Within the realm of the S&P 500, the consumer staples sector led the market in February, gaining 3.1 percent.

There is some concern that growth-oriented names are being eclipsed by defensive bets, said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati.

"This isn't a be-all and end-all sell signal by any means, but we would feel much more comfortable if some of the more aggressive areas, like technology and small caps, would start to gain some leadership here," Detrick said.

Signs that investors are becoming concerned about the rally's pace is evident in the options market, where the ratio of put activity to call activity has recently shifted in favor of puts, which represent expectations for a stock to fall.

"We are seeing some put hedging in the financials, building up for the past month," said Henry Schwartz, president of options analytics firm Trade Alert in New York.

The put-to-call ratio representing an aggregate of about 562 financial stocks is 1:1, when normally, calls should be outnumbering puts.

Investors have no shortage of reasons to crave the relative safety of blue chips and defensive stocks. Although markets have mostly looked past uncertainty over Washington's plans to cut the deficit, fiscal policy negotiations still pose a risk to equities.

The $85 billion in spending cuts set to begin on Friday is expected to slow economic growth this year if policymakers do not reach a new deal. Markets so far have held firm despite the wrangling in Washington, but tangible economic effects could pinch stock prices going forward.

The International Monetary Fund warned that full implementation of the cuts would probably take at least 0.5 percentage point off U.S. growth this year.

EASY MONEY AND TEPID HIRING

Investors will also take in a round of economic data at a time when concerns are percolating that the market is being pushed up less by fundamentals and more by loose monetary policy around the world.

The main economic event will be Friday's non-farm payrolls report for February. The U.S. economy is expected to have added 160,000 jobs last month, only a tad higher than in January, in a sign the labor market is healing at a slow pace. The U.S. unemployment rate is forecast to hold steady at 7.9 percent.

While lackluster data has been a catalyst in the past for stock market gains as investors bet it would ensure continued stimulus from the Federal Reserve, that sentiment may be wearing thin.

Markets stumbled last week following worries that the Fed might wind down its quantitative easing program sooner than expected.

"It shows the underpinning of the market is being driven at this point by monetary policy," Hellwig said.

With investors questioning what is behind the rally, it will make a run to record highs even more significant, Hellwig added.

"There's smart people that are in the bull camp and the bear camp and the muddle-through camp," Hellwig said. "The fact that you can statistically, using historical evidence, make a case for going higher, lower, or staying the same makes this number very important this time around."

(Wall St Week Ahead runs every Friday. Comments or questions on this column can be emailed to: leah.schnurr(at)thomsonreuters.com)

(Reporting by Leah Schnurr; Additional reporting by Doris Frankel in Chicago; Editing by Jan Paschal)

Read More..

WHO: Slight cancer risk after Japan nuke accident

LONDON (AP) — Two years after Japan's nuclear plant disaster, an international team of experts said Thursday that residents of areas hit by the highest doses of radiation face an increased cancer risk so small it probably won't be detectable.

In fact, experts calculated that increase at about 1 extra percentage point added to a Japanese infant's lifetime cancer risk.

"The additional risk is quite small and will probably be hidden by the noise of other (cancer) risks like people's lifestyle choices and statistical fluctuations," said Richard Wakeford of the University of Manchester, one of the authors of the report. "It's more important not to start smoking than having been in Fukushima."

The report was issued by the World Health Organization, which asked scientists to study the health effects of the disaster in Fukushima, a rural farming region.

On March 11, 2011, an earthquake and tsunami knocked out the Fukushima plant's power and cooling systems, causing meltdowns in three reactors and spewing radiation into the surrounding air, soil and water. The most exposed populations were directly under the plumes of radiation in the most affected communities in Fukushima, which is about 150 miles (240 kilometers) north of Tokyo.

In the report, the highest increases in risk are for people exposed as babies to radiation in the most heavily affected areas. Normally in Japan, the lifetime risk of developing cancer of an organ is about 41 percent for men and 29 percent for women. The new report said that for infants in the most heavily exposed areas, the radiation from Fukushima would add about 1 percentage point to those numbers.

Experts had been particularly worried about a spike in thyroid cancer, since radioactive iodine released in nuclear accidents is absorbed by the thyroid, especially in children. After the Chernobyl disaster, about 6,000 children exposed to radiation later developed thyroid cancer because many drank contaminated milk after the accident.

In Japan, dairy radiation levels were closely monitored, but children are not big milk drinkers there.

The WHO report estimated that women exposed as infants to the most radiation after the Fukushima accident would have a 70 percent higher chance of getting thyroid cancer in their lifetimes. But thyroid cancer is extremely rare and one of the most treatable cancers when caught early. A woman's normal lifetime risk of developing it is about 0.75 percent. That number would rise by 0.5 under the calculated increase for women who got the highest radiation doses as infants.

Wakeford said the increase may be so small it will probably not be observable.

For people beyond the most directly affected areas of Fukushima, Wakeford said the projected cancer risk from the radiation dropped dramatically. "The risks to everyone else were just infinitesimal."

David Brenner of Columbia University in New York, an expert on radiation-induced cancers, said that although the risk to individuals is tiny outside the most contaminated areas, some cancers might still result, at least in theory. But they'd be too rare to be detectable in overall cancer rates, he said.

Brenner said the numerical risk estimates in the WHO report were not surprising. He also said they should be considered imprecise because of the difficulty in determining risk from low doses of radiation. He was not connected with the WHO report.

Some experts said it was surprising that any increase in cancer was even predicted.

"On the basis of the radiation doses people have received, there is no reason to think there would be an increase in cancer in the next 50 years," said Wade Allison, an emeritus professor of physics at Oxford University, who also had no role in developing the new report. "The very small increase in cancers means that it's even less than the risk of crossing the road," he said.

WHO acknowledged in its report that it relied on some assumptions that may have resulted in an overestimate of the radiation dose in the general population.

Gerry Thomas, a professor of molecular pathology at Imperial College London, accused the United Nations health agency of hyping the cancer risk.

"It's understandable that WHO wants to err on the side of caution, but telling the Japanese about a barely significant personal risk may not be helpful," she said.

Thomas said the WHO report used inflated estimates of radiation doses and didn't properly take into account Japan's quick evacuation of people from Fukushima.

"This will fuel fears in Japan that could be more dangerous than the physical effects of radiation," she said, noting that people living under stress have higher rates of heart problems, suicide and mental illness.

In Japan, Norio Kanno, the chief of Iitate village, in one of the regions hardest hit by the disaster, harshly criticized the WHO report on Japanese public television channel NHK, describing it as "totally hypothetical."

Many people who remain in Fukushima still fear long-term health risks from the radiation, and some refuse to let their children play outside or eat locally grown food.

Some restrictions have been lifted on a 12-mile (20-kilometer) zone around the nuclear plant. But large sections of land in the area remain off-limits. Many residents aren't expected to be able to return to their homes for years.

Kanno accused the report's authors of exaggerating the cancer risk and stoking fear among residents.

"I'm enraged," he said.

___

Mari Yamaguchi in Tokyo and AP Science Writer Malcolm Ritter in New York contributed to this report.

__

Online:

WHO report: http://bit.ly/YDCXcb

Read More..

IHT Rendezvous: Muslims Seek Dialogue With Next Pope

LONDON — As the Catholic Church’s cardinal electors gather at the Vatican to choose a new pope, Muslim leaders are urging a revival of the often troubled dialogue between the two faiths.

During the papacy of Benedict XVI, relations between the world’s two largest religions were overshadowed by remarks he made in 2006 that were widely condemned as an attack on Islam.

In a speech at Regensburg University in his native Germany, Benedict quoted a 14th-century Byzantine emperor as saying, “Show me just what Muhammad brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached.”

In the face of protests from the Muslim world, the Vatican said the pope’s remarks had been misinterpreted and that he “deeply regretted” that the speech “sounded offensive to the sensibility of Muslim believers.”

For many in the Muslim world, however, the damage was done and the perception persisted that Benedict was hostile to Islam.

Juan Cole, a U.S. commentator on the Middle East, has suggested that although the pope backed down on some of his positions, “Pope Benedict roiled those relationships with needlessly provocative and sometimes offensive statements about Islam and Muslims.”

Despite the Vatican’s efforts to renew the interfaith dialogue by hosting a meeting with Muslim scholars, hostilities resumed in 2011 when the pope condemned alleged discrimination against Egypt’s Coptic Christians in the wake of a church bombing in Alexandria.

Al Azhar University in Cairo, the center of Islamic learning, froze relations with the Vatican in protest.

Following the pope’s decision to step down, Mahmud Azab, an adviser on interfaith dialogue to the head of Al Azhar, said, “The resumption of ties with the Vatican hinges on the new atmosphere created by the new pope. The initiative is now in the Vatican’s hands.”

Mahmoud Ashour, a senior Al Azhar cleric, insisted that “the new pope must not attack Islam,” according to remarks quoted by Agence France-Presse, the French news agency, and said the two religions should “complete one another, rather than compete.”

A French Muslim leader, meanwhile, has called for a fresh start in the dialogue with a new pope.

In an interview with Der Spiegel of Germany this week, Dalil Boubakeur, rector of the Grand Mosque in Paris, said of Benedict, “He was not able to understand Muslims. He had no direct experience with Islam, and he found nothing positive to say about our beliefs.”

Reem Nasr, writing at the policy debate Web site, Policymic, this week offered Benedict’s successor a five-point program to bridge the Catholic and Muslim worlds.

These included mutual respect, more papal contacts with Muslim leaders and a greater focus on what the religions had in common.

“There has been a long history of mistrust that can be overcome,” she wrote. “No one should give up just yet.”

Read More..

Camille Grammer Leaving Real Housewives of Beverly Hills

TV Watch
Buzz

By Raha Lewis

03/01/2013 at 04:50 PM EST

Camille Grammer and Adrienne Maloof

Getty(2)

Don't look for Camille Grammer on the upcoming Real Housewives of Beverly Hills reunion – nor on season 4 for that matter: The reality star has decided to call it quits, a source close to Grammer tells PEOPLE.

"There were some good times and some not so good times, but it's very hard to live your life out on the screen," the source says, referencing her divorce from Kelsey Grammer, which played out on the show's first season.

Grammer's decision comes at a time when there is great uncertainty regarding the upcoming season's cast.

"Adrienne Maloof is also considering leaving the show, but she has not made a definitive decision as of yet," the source tells PEOPLE.

Meanwhile, TMZ.com reports that, like Camille Grammer, Maloof will not be appearing on the reunion episode also because of a restraining order she and now-ex husband Paul Nassif signed "prohibiting them from talking about each other, their kids or the divorce."

As for Grammer, she has no regrets about the show says the source: "She is definitely a much stronger person now than when she started."

Read More..

WHO: Slight cancer risk after Japan nuke accident

LONDON (AP) — Two years after Japan's nuclear plant disaster, an international team of experts said Thursday that residents of areas hit by the highest doses of radiation face an increased cancer risk so small it probably won't be detectable.

In fact, experts calculated that increase at about 1 extra percentage point added to a Japanese infant's lifetime cancer risk.

"The additional risk is quite small and will probably be hidden by the noise of other (cancer) risks like people's lifestyle choices and statistical fluctuations," said Richard Wakeford of the University of Manchester, one of the authors of the report. "It's more important not to start smoking than having been in Fukushima."

The report was issued by the World Health Organization, which asked scientists to study the health effects of the disaster in Fukushima, a rural farming region.

On March 11, 2011, an earthquake and tsunami knocked out the Fukushima plant's power and cooling systems, causing meltdowns in three reactors and spewing radiation into the surrounding air, soil and water. The most exposed populations were directly under the plumes of radiation in the most affected communities in Fukushima, which is about 150 miles (240 kilometers) north of Tokyo.

In the report, the highest increases in risk are for people exposed as babies to radiation in the most heavily affected areas. Normally in Japan, the lifetime risk of developing cancer of an organ is about 41 percent for men and 29 percent for women. The new report said that for infants in the most heavily exposed areas, the radiation from Fukushima would add about 1 percentage point to those numbers.

Experts had been particularly worried about a spike in thyroid cancer, since radioactive iodine released in nuclear accidents is absorbed by the thyroid, especially in children. After the Chernobyl disaster, about 6,000 children exposed to radiation later developed thyroid cancer because many drank contaminated milk after the accident.

In Japan, dairy radiation levels were closely monitored, but children are not big milk drinkers there.

The WHO report estimated that women exposed as infants to the most radiation after the Fukushima accident would have a 70 percent higher chance of getting thyroid cancer in their lifetimes. But thyroid cancer is extremely rare and one of the most treatable cancers when caught early. A woman's normal lifetime risk of developing it is about 0.75 percent. That number would rise by 0.5 under the calculated increase for women who got the highest radiation doses as infants.

Wakeford said the increase may be so small it will probably not be observable.

For people beyond the most directly affected areas of Fukushima, Wakeford said the projected cancer risk from the radiation dropped dramatically. "The risks to everyone else were just infinitesimal."

David Brenner of Columbia University in New York, an expert on radiation-induced cancers, said that although the risk to individuals is tiny outside the most contaminated areas, some cancers might still result, at least in theory. But they'd be too rare to be detectable in overall cancer rates, he said.

Brenner said the numerical risk estimates in the WHO report were not surprising. He also said they should be considered imprecise because of the difficulty in determining risk from low doses of radiation. He was not connected with the WHO report.

Some experts said it was surprising that any increase in cancer was even predicted.

"On the basis of the radiation doses people have received, there is no reason to think there would be an increase in cancer in the next 50 years," said Wade Allison, an emeritus professor of physics at Oxford University, who also had no role in developing the new report. "The very small increase in cancers means that it's even less than the risk of crossing the road," he said.

WHO acknowledged in its report that it relied on some assumptions that may have resulted in an overestimate of the radiation dose in the general population.

Gerry Thomas, a professor of molecular pathology at Imperial College London, accused the United Nations health agency of hyping the cancer risk.

"It's understandable that WHO wants to err on the side of caution, but telling the Japanese about a barely significant personal risk may not be helpful," she said.

Thomas said the WHO report used inflated estimates of radiation doses and didn't properly take into account Japan's quick evacuation of people from Fukushima.

"This will fuel fears in Japan that could be more dangerous than the physical effects of radiation," she said, noting that people living under stress have higher rates of heart problems, suicide and mental illness.

In Japan, Norio Kanno, the chief of Iitate village, in one of the regions hardest hit by the disaster, harshly criticized the WHO report on Japanese public television channel NHK, describing it as "totally hypothetical."

Many people who remain in Fukushima still fear long-term health risks from the radiation, and some refuse to let their children play outside or eat locally grown food.

Some restrictions have been lifted on a 12-mile (20-kilometer) zone around the nuclear plant. But large sections of land in the area remain off-limits. Many residents aren't expected to be able to return to their homes for years.

Kanno accused the report's authors of exaggerating the cancer risk and stoking fear among residents.

"I'm enraged," he said.

___

Mari Yamaguchi in Tokyo and AP Science Writer Malcolm Ritter in New York contributed to this report.

__

Online:

WHO report: http://bit.ly/YDCXcb

Read More..

The Lede: Video of Turkish Premier Comparing Zionism to Anti-Semitism and Fascism

One day after Turkey’s prime minister, Recep Tayyip Erdogan, told a United Nations forum the world should consider Islamophobia a crime against humanity, “just like Zionism or anti-Semitism or fascism,” his Israeli counterpart lashed back. “I strongly condemn the remarks made by Prime Minister Erdogan of Turkey, comparing Zionism to fascism,” Prime Minister Benjamin Netanyahu replied on Twitter.

I strongly condemn the remarks made by Prime Minister Erdogan of Turkey, comparing Zionism to Fascism.This is a dark and false statement,

— Benjamin Netanyahu (@netanyahu) 28 Feb 13

Video of Mr. Erdogan’s complete address to the United Nations Alliance of Civilizations forum in Vienna was posted online by the United Nations with simultaneous translation into English.

In his remarks, Mr. Erdogan bemoaned “a lack of understanding between religions and sects” and said that the way ahead was “emphasizing the richness that comes from diversity.” After he praised “countries which see cultural and ethnic differences not as a reason for division or conflict but as a richness,” he complained of what he called the world’s indifference to the suffering of Muslims in Syria and elsewhere.

About seven minutes into the video, Mr. Erdogan said:

Unfortunately the modern world has not passed the test when it comes to Syria. In the last two years, we have seen close to 70,000 people lose their lives, and every single day we see innocent children, women, civilians, killed. And the fact that the world has not reacted to this situation seriously injures the sense of justice. In the same way, rising racism in Europe is a serious, problematic area, vis-à-vis the Alliance of Civilizations project.

In addition to indifference vis-à-vis the Muslim countries, we also see harsh, offending, insulting behavior towards Muslims who live in countries other than their own, and this continues to be an inconscionable act that has been ongoing around the world. We should be striving to better understand the beliefs of others but instead we see that people act based on prejudice and exclude others and despiuse them. And that is why it is necessary that we must consider — just like Zionism or anti-Semitism or fascism — Islamophobia as a crime against humanity.

Mr. Erdogan immediately went on to condemn those, including politicians, who use “the media or mass communication vehicles” for “provoking the sensitivities of a religion or a sect or a society.”

The Turkish prime minister has expressed his anger with Israeli policies in blunt terms at international forums in the past, most notably at Davos in 2009. He stormed off the stage at the end of a heated discussion of Israel’s Gaza offensive, after telling President Simon Peres, “When it comes to killing, you know well how to kill.”

Video of an argument between Turkey’s prime minister and Israel’s president at Davos in 2009.

Relations between the countries suffered another blow in 2010, when Israeli commandos killed nine Turks during a bloody raid on the ship leading an effort to break the Israeli blockade of Gaza organized by a Turkish aid organization.

Read More..

Jennifer Lawrence's No. 1 Fan Lives in Her Old Neighborhood

By Stephen M. Silverman

02/28/2013 at 04:45 PM EST

Jennifer Lawrence not only has an Oscar, she has a best friend in Louisville. Ky., where she grew up – and even Lawrence's own mother says this smiling neighborhood kid is a star. His name is Andy Strunk.

"Most popular guy in Kentucky," Lawrence, 22, tells Louisville TV station Wave 3. The two go back to having attended middle school together.

"He has the kindest heart of anybody I've ever met," says the Best Actress winner. "He's always in a good mood. And he's one of the funniest people I've ever been around."

Says his mother, Pollyanna Strunk: "He's her No. 1 fan"– and he's got every photo, every interview, every TV listing of Lawrence. She also sends him posters and mementos he adds to his collection.

Says Jennifer's mother, Karen Lawrence, who spoke to the TV camera with her arm around Andy, "I just know Jennifer's love for Andy is genuine."

Read More..

Wall Street ends flat after late fade; S&P up for fourth month

NEW YORK (Reuters) - Stocks ended flat on Thursday, giving up modest gains late in the session, denying the Dow a chance to inch closer to all-time highs.

The S&P 500 still managed to close out February with a fourth straight month of gains. JC Penney Co Inc was the day's biggest loser, falling 17 percent to $17.57 after the department store operator reported a steep drop in sales.

The U.S. economy grew slightly in the fourth quarter, a turnaround from an earlier estimate showing contraction, and a drop in new claims for unemployment benefits last week added to a batch of data suggesting the economy continues its sluggish improvement.

The Dow was within striking distance of its record high after a year-to-date advance of more than 7 percent. The Dow's record closing high, set on October 9, 2007, stands at 14,164.53, while the Dow's intraday record high, set on October 11, 2007, stands at 14,198.10.

The Dow Jones Transportation Average <.djt>, seen as a bet on future growth, is up 12.9 percent this year, and the 20-stock index hit a record intraday high earlier on Thursday.

"To push through to new highs, you would have to see consistent positive economic data in the U.S. and have Europe stabilize - those are two pretty big requirements," said Jeff Morris, head of U.S. equities at Standard Life Investments in Boston.

"It wouldn't surprise me to see us bounce around as we have the past couple of weeks," Morris added.

Volume was low for most of the session until quarterly index-rebalancing activity hit the tape at the very close of trading.

After a strong January with gains of more than 5 percent, both the Dow and the S&P 500 found gains tougher to come by in February. Minutes from the Federal Reserve's January meeting sparked concerns that the central bank may pull back on its stimulus measures sooner than expected, while looming U.S. budget cuts and turbulent Italian elections tempered investors' aggressiveness.

But concerns about Fed policy were eased by testimony from Fed Chairman Ben Bernanke before a congressional committee earlier this week, as he defended the policy of buying bonds to keep interest rates low to boost growth, despite worries some have about possible inflation.

The Dow Jones industrial average <.dji> shed 20.88 points, or 0.15 percent, to 14,054.49 at the close. The Standard & Poor's 500 Index <.spx> lost 1.31 points, or 0.09 percent, to 1,514.68. The Nasdaq Composite Index <.ixic> fell 2.07 points, or 0.07 percent, to end at 3,160.19.

For the month, the Dow rose 1.4 percent, the S&P 500 gained 1.1 percent and the Nasdaq advanced 0.6 percent.

Limited Brands and Netflix ranked among the best-performing consumer stocks. Shares of Limited Brands, the parent of retailers Victoria's Secret and Bath & Body Works, gained 2.3 percent to $45.52. The stock of video streaming service Netflix climbed 2 percent to $$188.08.

In contrast, shares of Groupon Inc fell on weak revenue, with the daily deals company's tumbling 24.3 percent to $4.53.

Cablevision slumped 9.6 percent to $13.99 after the cable provider took a $100 million hit on costs related to Superstorm Sandy and posted deeper video customer losses than expected.

On a positive note, Mylan Inc gained 3.6 percent to $29.61 after the generic drugmaker posted a 25 percent rise in fourth-quarter profit and said it will buy a unit of India's Strides Arcolab Ltd.

Investors were keeping an eye on the debate in Washington over U.S. government budget cuts that will take effect starting Friday if lawmakers fail to reach agreement on spending and taxes. President Barack Obama and Republican congressional leaders arranged last-ditch talks to prevent the cuts, but expectations were low that any deal would emerge.

Volume was modest with about 6.81 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq, slightly above the daily average of 6.46 billion.

Advancing stocks slightly outnumbered declining ones on the NYSE by 1,518 to 1,446. On the Nasdaq, the decliners had a slight edge, with 1,247 shares falling and 1,201 stocks rising.

(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)

Read More..