Israel Moves to Expand Settlements in East Jerusalem

Rina Castelnuovo for The New York Times

From his home in East Jerusalem last year, Haj Ibrahim Ahmad Hawa looked at the separation barrier surrounding Jerusalem with the Israeli settlement of Maale Adumim in the background. More Photos »

JERUSALEM — Israel is moving forward with development of Jewish settlements in a contentious area east of Jerusalem, defying the United States by advancing a project that has long been condemned by international leaders as effectively dooming any prospect of a two-state solution to the Israeli-Palestinian conflict.

One day after the United Nations General Assembly voted overwhelmingly to upgrade the Palestinians’ status, a senior Israeli official, speaking on the condition of anonymity, said the government would pursue “preliminary zoning and planning preparations” for a development that would separate the West Bank cities of Ramallah and Bethlehem from Jerusalem — preventing the possibility of a viable, contiguous Palestinian state.

The development, in an open area known as E1, would connect the large settlement town of Maale Adumim to Jerusalem. Israel also authorized the construction of 3,000 new housing units in parts of East Jerusalem and the West Bank.

The timing of twin actions seemed aimed at punishing the Palestinians for their United Nations bid, and appeared to demonstrate that hard-liners in the government had prevailed after days of debate over how to respond. They marked a surprising turnaround after a growing sense in recent days that Israeli leaders had acceded to pressure from Washington not to react quickly or harshly.

“This is a new act of defiance from the Israeli government,” Saab Erekat, the Palestinians’ chief negotiator, said in a statement. “At a moment where the Palestinian leadership is doing every single effort to save the two-state solution, the Israeli government does everything possible to destroy it.”

Much of the world considers settlements in East Jerusalem and the West Bank to be illegal under international law, and the United States has vigorously opposed development of E1 for nearly two decades. On Friday, Tommy Vietor, a White House spokesman, condemned the move, citing Washington’s “longstanding opposition to settlements and East Jerusalem construction and announcements.”

“We believe these actions are counterproductive and make it harder to resume direct negotiations or achieve a two-state solution,” Mr. Vietor said. “Direct negotiations remain our goal, and we encourage all parties to take steps to make that easier to achieve.”

The office of Prime Minister Benjamin Netanyahu refused to comment on the zoning and construction decisions, which were made Thursday night around the time of the General Assembly vote. But Israel has long maintained its right to develop neighborhoods throughout East Jerusalem and the West Bank — more than 500,000 Jews already live there — and Mr. Netanyahu, responding to the United Nations speech by President Mahmoud Abbas of the Palestinian Authority, said, “Someone who wants peace does not talk in such a manner.”

While Israel has frequently announced settlement expansions at delicate political moments, often to its detriment, the E1 move came as a shock, after a week in which both Israelis and Palestinians toned down their rhetoric about day-after responses to the United Nations bid. Avigdor Lieberman, the ultranationalist foreign minister who for months denounced the Palestinian initiative as “diplomatic terrorism” and said Israel should consider severe sanctions against the Palestinian Authority, told reporters in recent days that there would be “no automatic response.”

Mr. Erekat’s spokesman declined to discuss whether the Palestinians would use their upgraded status, as a nonmember observer state with access to United Nations institutions, to pursue a case in International Criminal Court regarding E1 or the other settlement expansion. Less contentious moves were already in progress: the Palestinian Authority has begun changing its name to “Palestine” on official documents, contracts and Web sites, and several nations are considering raising the level of diplomatic relations, giving Palestinian envoys the title of ambassador.

All but one European country voted with the Palestinians or abstained in Thursday’s United Nations vote, many of them citing concerns about settlements in West Bank and East Jerusalem territories Israel captured in the 1967 war. The settlement of E1, a 4.6-square-mile expanse of hilly parkland where some Bedouins have camps and a police station was opened in 2008, could further increase Israel’s international isolation.

Peter Baker contributed reporting from Hatfield, Pa.

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Jelly Bean update for DROID RAZR HD and MAXX HD set to roll out next week

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Powerball Winners Want to Go to the Beach, Set Up Scholarships with $300 Million

11/30/2012 at 04:35 PM EST

Cindy and Mark Hill

David Eulitt/Kansas City Star/Landov

Just in time for the holiday season the Hill family of Dearborn, Mo., got quite the gift: nearly $300 million, after winning half of the $587.5 million Powerball jackpot.

"We're still stunned by what's happened," Cindy Hill, 51, said during a press conference Friday alongside her family, according to an NBC News report. "People keep asking us, 'What are you going to buy with it?' I just want to go home and be back to normal."

Hill, who was an office manager until she was laid off in 2010, and her husband Mark, a mechanic, have three adult sons and a daughter, Jaiden, 6, whom they adopted from China.

On their list of possible purchases since their record win: a beach vacation for Jaiden (who has never visited the beach) and a red Camaro for Mark. The family has also spoken about possibly adopting again and setting up college funds for their extended family members, as well as a scholarship fund at their local high school.

As for their winning ticket, Cindy said she checked on Thursday morning after learning that one winning ticket was sold in Missouri.

"I didn't have my glasses, and I was thinking, is that the right number?" Cindy, who had bought five tickets, said, according to NBC.

The other winning ticket was sold in Arizona, and no winner has claimed the prize yet. On Thursday, however, a man in Upper Marlboro, Md., went into a gas station to check a handful of tickets (watch the CCTV video), reportedly presenting a ticket with the winning numbers (5-23-16-22-29-Powerball 6), CNN reports.

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Kenya village pairs AIDS orphans with grandparents

NYUMBANI, Kenya (AP) — There are no middle-aged people in Nyumbani. They all died years ago, before this village of hope in Kenya began. Only the young and old live here.

Nyumbani was born of the AIDS crisis. The 938 children here all saw their parents die. The 97 grandparents — eight grandfathers among them — saw their middle-aged children die. But put together, the bookend generations take care of one another.

Saturday is World AIDS Day, but the executive director of the aid group Nyumbani, which oversees the village of the same name, hates the name which is given to the day because for her the word AIDS is so freighted with doom and death. These days, it doesn't necessarily mean a death sentence. Millions live with the virus with the help of anti-retroviral drugs, or ARVs. And the village she runs is an example of that.

"AIDS is not a word that we should be using. At the beginning when we came up against HIV, it was a terminal disease and people were presenting at the last phase, which we call AIDS," said Sister Mary Owens. "There is no known limit to the lifespan now so that word AIDS should not be used. So I hate World AIDS Day, follow? Because we have moved beyond talking about AIDS, the terminal stage. None of our children are in the terminal stage."

In the village, each grandparent is charged with caring for about a dozen "grandchildren," one or two of whom will be biological family. That responsibility has been a life-changer for Janet Kitheka, who lost one daughter to AIDS in 2003. Another daughter died from cancer in 2004. A son died in a tree-cutting accident in 2006 and the 63-year-old lost two grandchildren in 2007, including one from AIDS.

"When I came here I was released from the grief because I am always busy instead of thinking about the dead," said Kitheka. "Now I am thinking about building a new house with 12 children. They are orphans. I said to myself, 'Think about the living ones now.' I'm very happy because of the children."

As she walks around Nyumbani, which is three hours' drive east of Nairobi, 73-year-old Sister Mary is greeted like a rock star by little girls in matching colorful school uniforms. Children run and play, and sleep in bunk beds inside mud-brick homes. High schoolers study carpentry or tailoring. But before 2006, this village did not exist, not until a Catholic charity petitioned the Kenyan government for land on which to house orphans.

Everyone here has been touched by HIV or AIDS. But only 80 children have HIV and thanks to anti-retroviral drugs, none of them has AIDS.

"They can dream their dreams and live a long life," Owens said.

Nyumbani relies heavily on U.S. funds but it is aiming to be self-sustaining.

The kids' bunk beds are made in the technical school's shop. A small aquaponics project is trying to grow edible fish. The mud bricks are made on site. Each grandparent has a plot of land for farming.

The biggest chunk of aid comes from the United States President's Emergency Plan for AIDS Relief (PEPFAR), which has given the village $2.5 million since 2006. A British couple gives $50,000 a year. A tree-growing project in the village begun by an American, John Noel, now stands six years from its first harvest. Some 120,000 trees have already been planted and thousands more were being planted last week.

"My wife and I got married as teenagers and started out being very poor. Lived in a trailer. And we found out what it was like to be in a situation where you can't support yourself," he said. "As an entrepreneur I looked to my enterprise skills to see what we could do to sustain the village forever, because we are in our 60s and we wanted to make sure that the thousand babies and children, all the little ones, were taken care of."

He hopes that after a decade the timber profits from the trees will make the village totally self-sustaining.

But while the future is looking brighter, the losses the orphans' suffered can resurface, particularly when class lessons are about family or medicine, said Winnie Joseph, the deputy headmaster at the village's elementary school. Kitheka says she tries to teach the kids how to love one another and how to cook and clean. But older kids sometimes will threaten to hit her after accusing her of favoring her biological grandchildren, she said.

For the most part, though, the children in Nyumbani appear to know how lucky they are, having landed in a village where they are cared for. An estimated 23.5 million people in sub-Saharan Africa have HIV as of 2011, representing 69 percent of the global HIV population, according to UNAIDS. Eastern and southern Africa are the hardest-hit regions. Millions of people — many of them parents — have died.

Kitheka noted that children just outside the village frequently go to bed hungry. And ARVs are harder to come by outside the village. The World Health Organization says about 61 percent of Kenyans with HIV are covered by ARVs across the country.

Paul Lgina, 14, contrasted the difference between life in Nyumbani, which in Swahili means simply "home," and his earlier life.

"In the village I get support. At my mother's home I did not have enough food, and I had to go to the river to fetch water," said Lina, who, like all the children in the village, has neither a mother or a father.

When Sister Mary first began caring for AIDS orphans in the early 1990s, she said her group was often told not to bother.

"At the beginning nobody knew what to do with them. In 1992 we were told these children are going to die anyway," she said. "But that wasn't our spirit. Today, kids we were told would die have graduated from high school."

___

On the Internet:

http://www.trees4children.org/

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Wall Street ends flat as "fiscal cliff" focus lingers

NEW YORK (Reuters) - The S&P 500 wrapped up its fifth positive month in the last six on Friday, although it ended the day flat as politicians remain at odds about how to avoid the so-called fiscal cliff.

Trading has been choppy in the last two weeks as investors react to statements from policymakers on the state of discussions on how to avert a series of tax hikes and spending cuts that could pull the economy back into recession.

The S&P 500 was up 0.29 percent in November even as it suffered a slide of more than 6 percent from the month's high to its low.

"Given the 'on again, off again' fiscal cliff (negotiations), it's rather surprising how resilient this market has been," said David Rolfe, chief investment officer at St. Louis-based Wedgewood Partners.

"Between now and the end of the year, there's going to be an information vacuum outside the fiscal cliff, and I believe that resiliency will be tested."

In contrast to the apparent calm in equities, the CBOE Volatility Index <.vix>, a gauge of market anxiety, jumped 5.4 percent, its largest daily gain in two weeks.

The VIX also rose for the week, but posted a whopping 14.7 percent decline for November.

On Friday, President Barack Obama accused a "handful of Republicans" in the U.S. House of Representatives of holding up legislation to extend tax cuts for middle-class Americans in order to try to preserve them for the wealthy.

Speaking shortly after the president, House Speaker John Boehner, an Ohio Republican, said: "There is a stalemate; let's not kid ourselves."

Despite the divisive language, many market participants are betting that a deal will be struck - if only at the eleventh hour.

Corporations continue to react to what is expected to be a harsher tax regime next year. Whole Foods Market was the latest to announce a special cash dividend - of $2.00 per share in this case - ahead of expected higher tax rates in 2013.

The Dow Jones industrial average <.dji> rose 3.76 points, or 0.03 percent, to 13,025.58 at the close. The S&P 500 <.spx> gained a mere 0.23 of a point, or 0.02 percent, to finish at 1,416.18. But the Nasdaq Composite Index <.ixic> dipped 1.79 points, or 0.06 percent, to end at 3,010.24.

For the month of November, the S&P 500 rose 0.29 percent, its smallest monthly variation since March 2011. The Dow fell 0.5 percent and the Nasdaq gained 1.1 percent.

For the week, though, all three major U.S. stock indexes advanced, with the Dow up 0.1 percent, the S&P 500 up 0.5 percent and the Nasdaq up 1.5 percent.

VeriSign shares dropped 13.2 percent to $34.15 after the company said the U.S. Department of Commerce approved its agreement with ICANN to run the .com internet registry, but VeriSign won't be able to raise prices as it did before.

Yum Brands slid 9.9 percent to $67.08 a day after the parent of the KFC, Taco Bell and Pizza Hut chains said it expects a drop in fourth-quarter sales at established restaurants in China.

After a close relationship for several years, Facebook and Zynga revised terms of a partnership agreement, according to regulatory filings on Thursday. Under the new pact, Zynga, creator of the "Farmville" game, will have limited ability to promote its site on Facebook.

Zynga's stock fell 6.1 percent to $2.46. Facebook's stock gained 2.5 percent to $28.

Apple Inc's latest iPhone received final clearance from Chinese regulators, paving the way for a December debut in a highly competitive market where the lack of a new model had severely eroded its share of product sales. Apple's stock fell 0.7 percent to $585.28.

The markets' reaction to data on Friday was muted.

U.S. consumer spending fell in October for the first time in five months and income growth stalled, leading some economists to cut already weak estimates of fourth-quarter economic growth.

Slightly more than 7 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, more than the daily average so far this year of about 6.48 billion shares and the largest in two weeks.

On the NYSE, roughly six issues rose for every five that fell, while on Nasdaq, the ratio was nearly 1 to 1.

(Reporting by Rodrigo Campos; Editing by Jan Paschal)

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Myanmar Security Forces Use Incendiary Devices in Raid on Protest Camp

BANGKOK — Security forces in Myanmar mounted a violent raid on Thursday against Buddhist monks and villagers who have been protesting the expansion of a copper mine. The crackdown was the largest since the civilian government of President Thein Sein came to power 20 months ago.

Witnesses said dozens of monks and other protesters were injured when security forces used incendiary devices that set fire to protesters’ encampments outside the offices of the Chinese company in charge of the project, which has a partnership with the powerful military in Myanmar, formerly Burma.

Photos from Burmese online news sites showed monks, who are highly revered in the country and are often involved in political causes, with singed saffron robes stuck to their badly seared skin.

The raid came hours before Daw Aung San Suu Kyi, the Nobel laureate and leader of the opposition in Parliament, was scheduled to visit the city of Monywa, near the mine.

Her visit underlined the widespread support the protests had engendered across the country before the raid.

Analysts said the brutal way that the crackdown was carried out could hamper Mr. Thein Sein’s efforts to persuade the country that his government has made a clean break from the military regimes that ruled the country for five decades.

“There will be political consequences,” said U Thiha Saw, the editor of Open News Journal and Myanma Danna magazine. “This may be the start of an uglier phase for the government. Things may get a little more complicated.”

The crackdown was conducted by security forces who have little experienced using modern crowd-control methods that are meant to minimize casualties. During military rule, dissent was brutally repressed and protesters on several occasions were shot dead in the streets.

In Thursday’s raid, security forces fired what one witness described to The Associated Press as “black balls that exploded into fire” to disperse the protesters, who had overstayed a Wednesday deadline set by the government to leave the area.

Factory workers and villagers, both ethnic Burmese and members of minorities, have taken advantage of new freedom under Mr. Thein Sein’s government to carry out limited demonstrations and strikes in recent months. The protests at the copper mine were by far the largest to appear since the former military junta ceded power to civilians in March 2011.

By dealing so forcefully with the mine protests, the government risks appearing to defend the vested interests of the old regime. The project is typical of the kinds of opaque deals often struck during military rule that have enriched many of the country’s generals. The military has been so deeply involved in business that it has its own holding company, the Union of Myanmar Economic Holdings; the company is listed as a part owner of the copper mine.

The deal between the military and the Chinese company, a subsidiary of a state-owned Chinese arms manufacturer, to expand the mine was signed two years ago when Mr. Thein Sein was prime minister under the military junta.

According to an American diplomatic cable made public by WikiLeaks, the deal was brokered by U Tay Za, a tycoon who became rich through his connections to the military regime, especially the country’s former dictator, Senior Gen. Than Shwe.

The crackdown may also complicate the investment picture for China, which has struggled in Myanmar with the perception that it is mainly interested in extracting natural resources from the country, not in aiding its development.

The Global Times, a state-owned Chinese newspaper, published an article Thursday, before the crackdown, that accused the West and advocacy groups of instigating the protests against the mine project, and said that shutting the mine down would be “a lose-lose situation” for the two countries.

“Chinese companies’ investments in Myanmar are facing huge challenges,” the article said. “What we see in the country is the inevitable impact of its democratization.”

Anti-Chinese sentiment was a major factor in the cancellation of a hydroelectric dam project last year in northern Myanmar that would have exported electricity to China. The project was suspended after an outcry.

Thursday’s raid came in the predawn hours. Ashin Visara, a 28-year-old monk who was injured in the crackdown, said security forces threw “explosive devices” into the areas where protesters were camped out.

“That started fires at the protest sites,” he said. “And then they attacked us.”

U Nway Oo, a student activist from Monywa who assisted the injured, said many protesters fled into the surrounding villages or the jungle.

“There were no medical personnel or ambulances around before the crackdown,” he said.

The mine, which is often referred to as Letpadaung for the mountains from which the copper is extracted, was initially operated by a joint venture between the Myanmar government and a Canadian company, Ivanhoe Mines. The Chinese company became involved two years ago. The expansion project would displace inhabitants of two dozen villages.

The protests have been led in part by two young women, Aye Net and Thwe Thwe Win, who reportedly escaped arrest.

The crackdown is a setback for the efforts of advocacy groups that focus on the crucial question of land rights, an issue likely to become more contentious as economic growth makes villagers’ land more attractive to companies and property developers. Land rights were the focus of a conference last weekend in the capital, Naypyidaw, that was attended by high-ranking government officials.

Wai Moe contributed reporting from Monywa, Myanmar.

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Sony sells over half a million PlayStation 3 consoles over Black Friday week

Both Microsoft (MSFT) and Nintendo (NTDOY) had a big week of console sales during Black Friday’s week of shopping madness in the U.S. So how did Sony (SNE) do in comparison? Sony Computer Entertainment of America president and CEO Jack Tretton announced on Thursday that the company sold 525,000 PlayStation 3 consoles and 160,000 PS Vita handhelds during the Black Friday week. Overall PlayStation sales of hardware, software and accessories are up 9% over the same period last year. Tretton was also happy to reveal that subscriptions to its PlayStation Plus grew 259% since last year with customer satisfaction flying high at 95% after Sony added the Instant Game Collection to the service earlier this year.

Sony’s PlayStation 3 and PS Vita sales were largely bolstered by $ 199.99 bundles packaged with free games that the company pushed to retails on Black Friday. The sell-out of the bundles within minutes at retailers such as Amazon (AMZN) is a good indicator that there is huge demand for a sub-$ 200 PlayStation 3. Currently, the lowest-priced PS3 is a second-gen 160GB slim model with an MSRP of $ 249.99. The redesigned third-gen PS3s start at $ 269.99 with a 250GB hard drive.

In terms of which home console did the best over Black Friday, it looks like the Xbox 360′s 750,000 consoles took first place, while Sony came in second with 525,000 PS3s and Nintendo came in third with 400,000 Wii U systems.

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What Had Meryl Streep Rocking Out?

Caught in the Act

11/29/2012 at 05:30 PM EST

Meryl Streep and Jordin Sparks

Charles Eshelman/FilmMagic, Mike Coppola/Getty

Someone's a pop music fan! Meryl Streep was "rockin' out" on Wednesday night at the Christopher and Dana Reeve Foundation's annual gala at Cipriani New York, an onlooker tells PEOPLE. The Oscar winner was dancing in the aisles as Jason Derulo sang his hit, "In My Head."

Also rocking out? Derulo's girlfriend, Jordin Sparks, who performed later on, too, as Derulo proudly filmed.

Guests, who turned out to support the Reeve Foundation's work to find a cure for spinal injury and improve the lives of those living with paralysis, dined on baked tagliolini with mushrooms, prime roast filet with fresh herb melange sauce,f resh seasonal ratatouille and Yukon gold sauté and a specialty cake compliments of Cake Boss star Buddy Valastro and la famiglia of Carlo's Bakery.

Meanwhile, Streep, a close friend of the late Dana Reeve, presented the Dana Reeve Hope Award to her good friend, producer Harvey Weinstein, and the directors of The Intouchables, an inspiring film about a friendship between a quadriplegic aristocrat and the young convict who becomes his caretaker.

One of the film's stars, Omar Sy, said he was honored to share the stage with Streep and joked that Streep could play him, though "we don't look alike." – Sharon Cotliar

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Clinton releases road map for AIDS-free generation

WASHINGTON (AP) — In an ambitious road map for slashing the global spread of AIDS, the Obama administration says treating people sooner and more rapid expansion of other proven tools could help even the hardest-hit countries begin turning the tide of the epidemic over the next three to five years.

"An AIDS-free generation is not just a rallying cry — it is a goal that is within our reach," Secretary of State Hillary Rodham Clinton, who ordered the blueprint, said in the report.

"Make no mistake about it, HIV may well be with us into the future but the disease that it causes need not be," she said at the State Department Thursday.

President Barack Obama echoed that promise.

"We stand at a tipping point in the fight against HIV/AIDS, and working together, we can realize our historic opportunity to bring that fight to an end," Obama said in a proclamation to mark World AIDS Day on Saturday.

Some 34 million people worldwide are living with HIV, and despite a decline in new infections over the last decade, 2.5 million people were infected last year.

Given those staggering figures, what does an AIDS-free generation mean? That virtually no babies are born infected, young people have a much lower risk than today of becoming infected, and that people who already have HIV would receive life-saving treatment.

That last step is key: Treating people early in their infection, before they get sick, not only helps them survive but also dramatically cuts the chances that they'll infect others. Yet only about 8 million HIV patients in developing countries are getting treatment. The United Nations aims to have 15 million treated by 2015.

Other important steps include: Treating more pregnant women, and keeping them on treatment after their babies are born; increasing male circumcision to lower men's risk of heterosexual infection; increasing access to both male and female condoms; and more HIV testing.

The world spent $16.8 billion fighting AIDS in poor countries last year. The U.S. government is the leading donor, spending about $5.6 billion.

Thursday's report from PEPFAR, the President's Emergency Plan for AIDS Relief, outlines how progress could continue at current spending levels — something far from certain as Congress and Obama struggle to avert looming budget cuts at year's end — or how faster progress is possible with stepped-up commitments from hard-hit countries themselves.

Clinton warned Thursday that the U.S. must continue doing its share: "In the fight against HIV/AIDS, failure to live up to our commitments isn't just disappointing, it's deadly."

The report highlighted Zambia, which already is seeing some declines in new cases of HIV. It will have to treat only about 145,000 more patients over the next four years to meet its share of the U.N. goal, a move that could prevent more than 126,000 new infections in that same time period. But if Zambia could go further and treat nearly 198,000 more people, the benefit would be even greater — 179,000 new infections prevented, the report estimates.

In contrast, if Zambia had to stick with 2011 levels of HIV prevention, new infections could level off or even rise again over the next four years, the report found.

Advocacy groups said the blueprint offers a much-needed set of practical steps to achieve an AIDS-free generation — and makes clear that maintaining momentum is crucial despite economic difficulties here and abroad.

"The blueprint lays out the stark choices we have: To stick with the baseline and see an epidemic flatline or grow, or ramp up" to continue progress, said Chris Collins of amFAR, the Foundation for AIDS Research.

His group has estimated that more than 276,000 people would miss out on HIV treatment if U.S. dollars for the global AIDS fight are part of across-the-board spending cuts set to begin in January.

Thursday's report also urges targeting the populations at highest risk, including gay men, injecting drug users and sex workers, especially in countries where stigma and discrimination has denied them access to HIV prevention services.

"We have to go where the virus is," Clinton said.

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Wall Street ends higher after swings on 'fiscal cliff'

NEW YORK (Reuters) - Stocks finished higher on Thursday as investors bought on sporadic dips in a market roiled by conflicting comments from Washington about negotiations on an agreement to avoid the "fiscal cliff."

Tech shares, including Research In Motion and Advanced Micro Devices , helped the Nasdaq outperform the broader market. Telecommunications and health-care stocks were the day's best-performing sectors.

Reflecting the uncertainty surrounding U.S. budget talks, trading was choppy. Wall Street reversed early gains and fell shortly after House Speaker John Boehner, the top Republican in Congress, dashed hopes that lawmakers were getting closer to a budget deal that would avert automatic tax increases and spending cuts set for early 2013 - the fiscal cliff - that could push the U.S. economy into a recession next year. But the market rebounded by afternoon and the three major U.S. stock indexes rebounded to near their session highs.

"There is an emotional part in buying on the small dips here. Investors are more worried about missing the rally than losing money as they believe that the 'fiscal cliff' will be solved eventually," said James Dailey, portfolio manager at TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.

"Until the fiscal cliff is solved, the madness of the crowd will not subside."

Discussions on Capitol Hill are aimed at avoiding big automatic spending cuts and tax hikes, known as the fiscal cliff, that will start taking effect beginning in January.

Boehner's comment about a lack of progress in talks with the White House was one of a series of contrary pronouncements by lawmakers and the Obama administration over whether Washington will finally cut a deal.

There have been some signs that leaders are moving closer to a fiscal agreement. The S&P 500 has gained about 5 percent recently after a sell-off that took it down almost 8 percent following the U.S. election on November 6. But investors remain wary that politicians' ad hoc statements can spark quick reversals in the market.

U.S.-listed shares of BlackBerry maker Research In Motion rose 4 percent to $11.54 after Goldman Sachs upgraded the stock to "buy" from "neutral" on optimism ahead of the launch of the BlackBerry 10 smartphone.

Advanced Micro Devices Inc shares gained 4.1 percent to $2.04 on plans to sell and lease back its campus in Austin, Texas. The sale and lease-back will raise cash and fund its chipmaking business as Advanced Micro Devices diversifies beyond the struggling PC industry into new markets.

The Dow Jones industrial average <.dji> rose 36.71 points, or 0.28 percent, to 13,021.82 at the close. The Standard & Poor's 500 Index <.spx> gained 6.02 points, or 0.43 percent, to 1,415.95. The Nasdaq Composite Index <.ixic> advanced 20.25 points, or 0.68 percent, to close at 3,012.03.

So far this week, the Dow is up 0.1 percent, the S&P 500 is up 0.5 percent and the Nasdaq is up 1.5 percent.

But shares of top retailers retreated in the wake of data showing a weak start to November sales after Superstorm Sandy. Kohl's Corp fell 12 percent to $45.02.

Tiffany shares dropped 6.2 percent to $59.80 after the upscale jeweler reported quarterly results and cut its full-year sales and profit forecasts.

Supervalu shares sank 18.6 percent to $2.28 after a report that Cerberus Capital Management was having difficulty obtaining financing to buy out the troubled grocery chain.

Data showed the U.S. economy grew faster than initially thought in the third quarter as businesses restocked, but consumer and business spending were revised lower in a sobering reminder of the economic recovery's underlying weakness.

Contracts to buy previously owned U.S. homes rose more than expected in October, a sign the housing market recovery advanced into the fourth quarter despite a mammoth storm and concerns over looming tax hikes. Homebuilders' shares rose. The PHLX housing index <.hgx> rose 0.8 percent.

About 6.15 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average so far this year of about 6.48 billion shares.

On both the NYSE and the Nasdaq, roughly three stocks rose for every one that fell.

(Editing by Kenneth Barry and Jan Paschal)

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