Dow Jones Industrial Average Snaps Three-Day Losing Streak

NEW YORK — Whipsawed by strong earnings from some companies, weak ones from others, including the once infallible Apple, investors couldn't make up their mind whether to buy or sell on Wednesday. In the end, they mostly sold, but barely.

The Standard & Poor's 500 slipped 0.42 points, or 0.03 percent, to end 1,337.89. The tiny loss extended the broad index's losses to a fourth straight day. A big reason was Apple, which dropped $22.12 to $578.80, a loss of 4 percent. A sharp drop in new home sales also fed the selling.

The Dow Jones industrial average rose 58.73 points, or 0.5 percent, to 12,676.05. That snapped a three-day, triple-digit losing streak for the index.

Helping the Dow were big gains from two of its components, Boeing and Caterpillar. The duo contributed 24 points to the index, or nearly half of its gain.

Boeing rose $2, nearly 3 percent, to $74.03 after reporting surprisingly strong earnings. The aircraft maker also raised its profit forecast for all of 2012.

Caterpillar, which makes mining and construction equipment, rose $1.17, or 1.4 percent, to $82.60. The company blew away analysts' estimates with a 67 percent surge in profits for the second quarter. Caterpillar credited strong sales of mining equipment overseas and a strengthening housing market.

Shortly after Caterpillar announced its results, the optimism about housing took a hit. The Commerce Department said sales of new homes plunged 8 percent last month, the steepest drop since February last year. Sales in the Northeastern U.S. plummeted 60 percent. The decline suggests a weaker job market is dampening any pickup in the industry.

"Housing is not really recovering, it's bottoming," said Steven Ricchiuto, chief economist at Mizuho Securities, a brokerage firm. "That's still a problem with the economy."

Home builders were hit hard. Beazer Homes fell 13 cents, or 5 percent, to $2.35. KB Home lost 32 cents, or 3 percent, to $9.31.

The biggest loser in the S&P was Netflix, the video subscription company. It fell $20.11 to $60.28, a loss of 25 percent. The company reported late Tuesday that its net income plunged 91 percent in the latest quarter. Investors are worried about rising licensing fees and slowing subscriber growth.

Stocks were pushed higher at the opening by the gains in Caterpillar and Boeing. But the disappointing home sales news soon cut into the gains, and trading remained choppy throughout the day.

Apple didn't help. Late Tuesday, the company reported net income rose 21 percent in the second quarter instead of the 33 percent that analysts were expecting. The company said consumers appear to be holding off on buying iPhones before a new model comes out, even though it isn't expected until October.

Apple makes up 12.7 percent of the Nasdaq composite, making it by far the biggest component of the technology-focused index. The Nasdaq lagged the broader market, giving up 0.3 percent, or 8.75 points, to close at 2,854.24.

The bad news from tech stocks didn't end there. After the closing bell, Zynga, the maker of online video games like "Farmville," slashed its forecast for full-year earnings, blaming delays in launching new games, dwindling revenue from existing web games and a "more challenging environment" on the Facebook platform. The stock plunged $2.04, or 40 percent, to $3.05 in after-hours trading.

In other corporate news, computer security provider Symantec soared $1.79 to $14.96. The company announced the departure of its CEO, Enrique Salem, and reported earnings per share and revenue came in well ahead of Wall Street's estimates.

WellPoint, the nation's second largest insurer, lowered its earnings forecast. Its stock fell $7.41, or 12 percent, $54.01, the biggest one-day drop for the stock in more than three years. The insurer said enrollment has been slipping as companies cut jobs.

Corning said its second-quarter profit sank 39 percent on lower sales volumes and prices of its liquid-crystal-display glass products. Its stock fell 93 cents to $11.14, or 8 percent.

Stock in RadioShack plunged $1.05, or 29 percent, to $2.60, an all-time low for the electronics retailer. The company reported an unexpected loss for its second quarter and suspended its dividend.

In Europe, stock indexes mostly higher. A European Central Bank policymaker said the region's bailout fund should be given the power to borrow money from the central bank, increasing its financial resources. That would be necessary if Spain asked for a bailout.

The yield on the Spain's 10-year government bond fell to 7.37 percent from 7.53 percent late Tuesday. That's a positive sign that investors are slightly less worried about Spain's ability to repay its debts.

Assad Regime Massacre in Traymseh

I was deeply saddened and outraged to learn of reports of yet another massacre committed by the Syrian regime that has claimed the lives of over 200 men, women, and children in the village of Traymseh. Credible reports indicate that this unconscionable act was carried out by artillery, tanks, and helicopters – indisputable evidence that the regime deliberately murdered innocent civilians. Syria cannot be peaceful, stable, or democratic until Assad goes and a political transition begins. We call for an immediate ceasefire in and around Hama to allow the UN observer mission to enter Traymseh. Those who committed these atrocities will be identified and held accountable.

As long as the Assad regime continues to wage war against the Syrian people, the international community must keep increasing the pressure on the regime to halt the violence and allow for a political solution to go forward. The Security Council should put its full weight behind the Annan plan for an immediate ceasefire and a political transition and make clear to the Syrian regime that there will be consequences for non-compliance. History will judge this Council. Its members must ask themselves whether continuing to allow the Assad regime to commit unspeakable violence against its own people is the legacy they want to leave.

Khan promises to knock out Garcia after title-rival's father makes X-rated racial jibe

Danny Garcia's eccentric father stole the show as the WBC light-welterweight champion came face to face with Amir Khan ahead of Saturday's unification fight in Las Vegas.

The outspoken Angel Garcia lived up to his reputation once again as he gave an impassioned, heated speech at the main pre-fight press conference.

Garcia, who trains his son, has made unsavoury comments about WBA champion Khan's Pakistani heritage in the past as well as more run-of-the-mill trash talk.
After making a speech in which he again touched on religion - before moving on to a bizarre rant about the strength of Latin America - he sat making gestures when it was Khan's turn to speak, holding up his son's belt, pulling faces, pretending to punch himself in the face and shouting comments.

At one stage, reacting to jeers from Khan's entourage, he was heard shouting 'f****** retards'. When Khan reacted to his previous comments about Pakistan, he repeatedly said of the Briton: 'His DNA is f***** up'.

Khan, speaking on the podium, said: 'Garcia's team can say whatever they want.

'I promise you - I've never said this at a press conference - I will knock Danny Garcia out and win the titles.
I will knock him out and if his dad wants it afterwards...That will shut his dad up anyway. I'm not going to do anything physical because his dad talks so much.

'I'm going to hurt his son. I'm going to do it in the ring. I cannot wait until after the fight, when I've knocked his son out and I'm stood here with the titles.

'Another thing, it's funny when he said he's never seen a Pakistani fight. He's going to see a Pakistani fight on Saturday and knock his son out.

'I can't wait to get in there. You're going to see a British Pakistani fight on Saturday and you're going to see him knock your guy out.'

Newly reinstated WBA champion Khan is ready to move on from what he describes as the worst six months of his career.

Khan endured a 'devastating' spell as he lost his WBA and IBF titles in a surprise defeat by Lamont Peterson last December.
The fall-out from that fight was messy and controversial as Khan raised a number of grievances relating to issues inside and outside the ring.

The saga reached new levels before their scheduled May rematch when American Peterson tested positive for banned synthetic testosterone, before admitting he had already used it before their first fight in December, albeit for medical reasons.

While Peterson's positive test vindicated Khan and undermined the defeat, it also robbed the 25-year-old of the chance to avenge his second career loss. His bitterness has been eased, however, by the news that the WBA have stripped the title from Peterson and strapped it around his own waist once more.

'It was the hardest six months of my career,' Khan said ahead of Saturday's bout with WBC champion Garcia in Las Vegas.

'Straight after the fight I was devastated because I'd lost the fight and I was so upset. Then when I got into the camp I was so happy that I'd got the rematch, because even that was so hard to negotiate. I agreed to whatever they said.'
However, the rematch was cancelled and Khan welcomed the WBA's announcement yesterday that he will go into the fight with WBC king Garcia as a title-holder himself.

The bout has been given added prestige by the presence of two recognised world titles and, importantly, the respected Ring Magazine belt which is awarded to fighters regarded as the best in their division.

'I'm glad the WBA are reinstating me as champion again,' Khan said. 'It means I walk into this fight as world champion and the WBC title is on the line but not only that, the Ring magazine title will be on the line as well.

'It means this fight will really show who is the best fighter in the 140lb division and it will show I'm the best.

'Justice has been done.'

The move by drug companies to make abuse-proof prescription painkillers may be inadvertently promoting heroin use, a new study found.

The study of more than 2,500 people with opioid dependence found a 17 percent drop in OxyContin abuse with the 2010 arrival of a formula that's harder to inhale or inject. During the same time period, heroin abuse doubled.

"I think the message we have to take away from this is that there are both anticipated consequences and unanticipated consequences to these new formulas," said Theodore Cicero, a professor of psychiatry at Washington University in St. Louis and lead author of the study published today in the New England Journal of Medicine. "Substance abuse is like a balloon: If you press in one spot, it bulges in another."

Unlike its predecessor, the abuse-deterring version of OxyContin turns to gel when crushed, making it harder for people to snort or inject for a rapid high. But nearly a quarter of study participants found a way around the formulation tweak, and 66 percent said they switched to another opioid – usually heroin.

"Most people that I know don't use OxyContin to get high anymore," one participant said, according to the study. "They have moved on to heroin [because] it is easier to use, much cheaper and easily available."
A small bag of heroin – enough for a high – can cost as little as $5, according to Cicero. An 80-milligram dose of OxyContin, on the other hand, can cost up to $80 on the street, according to the U.S. Drug Enforcement Administration.

"The rationale was if we reduced the supply, it would decrease the demand," Cicero said of national efforts to limit access to prescription painkillers and minimize the potential for abuse. "But what we're seeing is the demand is still there and it's driving the procurement of different drugs."
Different, and potentially more dangerous, that is. Whereas the dose of OxyContin is engraved in the pill, heroin powder is usually cut with other chemicals to bolster dealers' profits.

"When people switch over, they don't really know what they're getting," said Cicero. "They don't know the dose or the purity, so overdoses become quite common."

OxyContin maker Purdue Pharma said in a statement, "It is unreasonable to expect the reformulation of one medication by one pharmaceutical company would reduce overall opioid abuse. Rather, these data suggest that reformulating all opioid medications over time to incorporate abuse-deterrent properties may help to reduce the overall abuse of this class of medications."

H. Westley Clark, director of the Center for Substance Abuse Treatment at the U.S. Substance Abuse and Mental Health Services Administration, said the shift to heroin use among people with opioid dependence reflects the challenge of obtaining prescription painkillers.

"Our belief is that those coordinated and comprehensive efforts to curtail the problem of prescription drug abuse are having an impact. Now we have to be concerned about the unintentional consequences," he said.

By ramping up public awareness and cracking down on illicit drug use, Clark hopes to see a downtick in prescription drug abuse without an uptick in heroin use.

"We should not attempt to solve one problem by creating another," he said.

For Shelby, 50 years of blowing other cars' doors off

LAS VEGAS, Nev.--It may be the most valuable American car ever made. Sitting inside what looks from the outside mostly like a non-descript suburban warehouse, the vehicle fills a lot of people with lust.

Still a striking and shiny blue, the 1962 Shelby Cobra 427 is the very first of its kind. And it is such an important entry in the pantheon of American muscle cars that someone recently offered $25 million for it.
Welcome to Shelby American, a company whose rare cars are built to blow by just about any competition, yet are designed to be everyday drivable if that's what an owner wants.

As part of Road Trip 2012, I've stopped in on the company the late Carroll Shelby founded in 1962 -- making this the 50th anniversary of the Cobra and the manufacturer that bears his name.

These days, Shelby is probably best known for the high-end modifications is does to make Ford Mustangs be truly all they can be. For example, the Shelby 1000, which is made entirely by hand in very limited numbers, starts with a 2012 Shelby GT 500 Super Snake -- already a more powerful car than most -- and takes it over the top. The result costs a minimum of $150,000 (not including the base vehicle) and generates more than 1,000 horsepower and a top speed in excess of 200 miles an hour.
Each year, Shelby turns out only a couple hundred cars and spends between 60 and 90 days working on each. And while the vehicles may be the secret desire of men everywhere, vice president of operations Gary Patterson told me that those men's wives also enjoy them since each model comes with many of the creature comforts common to high-end cars, such as cruise control, GPS navigation, MP3 support, and so on.
In other words, Patterson said, today's Shelbys take the muscle car concept and adapt it for a discerning audience. "In the '60s, American muscle cars...looked cool, but they were hard to live with," Patterson said. "Today's cars are much faster, more powerful, and they stop, turn, and perform at a much higher level...And they still look great."

I asked Patterson if it's hard to sell Shelbys to buyers who want true car power and who may well be used to what the cars from decades ago offered. He laughed at the notion. "Actually, it's easy," Patterson said. "A lot of our customers own an old Shelby. [But] they want something they can use every day...You can drive [a new Shelby] to a track and drive fast all weekend. Then drive it home with MP3s and power windows."

Patterson pointed out that while most cars depreciate the moment they're driven off the lot, many Shelbys immediately appreciate in value, making them a good investment for those that can afford them.

Mustang modification
For the most part, the bulk of Shelbys that leave the company's Las Vegas assembly plant have Ford Mustangs as their base. Buyers start by acquiring a Mustang, and then -- either immediately or at some point later -- get in touch with Shelby to begin the process. Once they deliver their car to the company, Shelby begins the modifications.
Of course, the company still produces Cobras, Shelby's original muscle car, and even makes them with the original specifications in order to appeal to true traditionalists. But those cars don't meet most states' emissions or crash standards, so the company sends the otherwise completed car along with its engine and transmission still in component form to a buyer's local dealer, who finishes the assembly. Alternatively, buyers can do that themselves.

Today, in addition to the Cobra, Shelby sells 2012 and 2013 GT350s, which cost as much as $34,000 on top of the base Mustang, and produce 525 horsepower; the 2011 to 2013 GTS, which comes with either a V6 or V8 and generates as much as 624 horsepower (at the flywheel); the GT 500 Super Snake, which runs $34,500 on top of the base vehicle, and which generates 750 horsepower with its supercharged engine; and the high-end Shelby 1000.

The company also has what Patterson called a "Speed Shop," where it will, for the right price, modify almost any car to meet Shelby standards. That could be a Mustang, a truck, a sandbuggy, or even a Corvette. The modifications are up to the owner, but could include anything from a minor suspension upgrade to a new exhaust, or even an entire rebuild.

Before I leave, Patterson takes me for a drive in a Super Snake. He's an accomplished test driver, so the ride is unlike any I've had before. We find a back road and quickly top 100 miles an hour. He also demonstrates the car's suspension by jerking the wheel back and forth as we drive -- I didn't notice the speed, but it wasn't slow -- and it didn't betray the least sign of instability. We don't go near the top speed, but Patterson grinned as he told me, "It'll make that 160 speedometer disappear just like that."

I started my time with him wondering if people interested in these cars are really wishing for the good old days of '60s muscle cars. Patterson said it's just the opposite: "The good days are today."

Glaxo Wins Approval for Child Meningitis Vaccine

Physicians have another weapon in the battle against childhood meningitis. On Thursday, the

U.S. Food & Drug Administration granted approval for a combination vaccine designed to

prevent bacterial meningitis in children.

The new vaccine, called MenHibrix, was developed GlaxoSmithKline (NYSE:GSK). It becomes the

first meningitis vaccine approved for use in children as young as six weeks old, Dow Jones

noted. The vaccine can be given to babies in four doses spaced between two and 15 months.

That puts it in line with the typical vaccination schedule for very young children.
MenHibrix targets meningitis and other illnesses that stem from exposure to the Neisseria

meningitidis serogroups C and Y and Haemophilus influenzae type b bacteria. These bacteria

can cause potentially fatal bloodstream infections.

In May, GlaxoSmithKline launched a $2.6 billion hostile takeover bid for its long-time

research partner Human Genome Sciences (NASDAQ:HGSI).

Shares of GlaxoSmithKline slipped fractionally in early Friday trading.

Gaurav, Kanika present a Swarvoski-inspired line

It was neither a peculiar accessory nor an odd dress that caught the eye. It was 'Swarvoski', embedded, embellished and strung on within the fabric, which became the highpoint of this show. The ramp was jointly shared by the two designers and they did a decent job in showcasing a metallic-chic collection.

Gaurav Jai Gupta weaves 'traditional' with 'technology'

Designs and fabric: 'Framed but changed' was his idea of interlacing Swarvoski crystal threads into hand-woven fabrics like cotton, Mohair and Angora. An expert engineering of handloom couture was apparent in the weaving techniques such as Jaamdani and Tangail and that's what made Gaurav's collection replete with understated luxury. Sophisticated cuts and humble yet solid colours appealed the season's fashion sensibilities quite aptly.

Silhouettes in geometrical patterns and angular forms, short dresses with bold side slits, Rajasthani Koti-style jackets worn above shirts with slim leather belts tied around the waist, button-up dresses exuding occasional Swarvoski shimmer, shrug jackets with peculiar collars that reach up to the chin, one piece skirt dresses and loose blazers with curvy edges comprised the architectural ensembles. All in all, a clean, simple and very wearable collection was showcased.

Colour palette: The collection boasted modern techniques but the dark hues helped in retaining the subtlety. Deep blues, dull purples, blacks, industrial greys, lifeless greens and reds ruled the ramp. There were absolutely no accessories and the plain Jane look was topped with straight hair tied up into a neat pony tail and basic black high heel bellies.

Kanika's 'Anaikka', a reflection of herself

Theme: Anaikka is the woman of today. True, the subject has been done to death but in Kanika's case it unravels a unique perception. A racy number in the backdrop matched with a high-paced ramp walk managed to throw some snob in the air.

Designs and fabric: The first set of the dresses were mostly dark overtones like blacks and greys forming jackets complete with suede sleeves and loose dhoti pants. The second set, however, brought with it some colour, though mostly dulls adhering to the sombre mood of the season and lots of bling. Heavily sequined collar dresses, zip up silhouettes smothered with Swarvoski embroidery, short blazers with sequined cuffs, and long golden gowns perfect for the evening.

Cleopatra on the ramp: The dusky beauty, Chitrangada Singh, our very own desi Cleopatra walked in like a true Egyptian queen. She wore a bright blue evening gown that was adorned with heavy Swarvoski embellishments covering the bust area, shoulder blades (pauldron) done up in dull gold colour and a head gear that completed the female Gladiator look. Mighty impressed with Kanika's collection, she said, "The collection is very Kanika. She's one person who designs what she really believes in". On being asked about her personal style she said, "I love the era of the 60s and 70s and I'm glad it's coming back in fashion".

Accessories: Smart square-shaped clutch bags accompanied the ensembles.

Although Kanika Saluja Chaudhary debuted with this show, her belief towards her theme and idea was clear. "My collection is inspired by powerful women. The Gladiator-like dresses are a representation of a female Gladiator that is unknown to the world", she said.

Front row guests/glitterati: Besides a sizeable portion of the front-row audience that formed groups of stylish buyers, British-Indian sitar player and composer, Anoushka Shankar and model turned actress Lisa Haydon were spotted.