China Communist Party unveils new leadership with Xi Jinping at top

BEIJING (Reuters) - China's ruling Communist Party unveiled its new leadership line-up on Thursday to steer the world's second-largest economy for the next five years, with Vice President Xi Jinping taking over from outgoing President Hu Jintao as party chief.


Xi was also named head of the party's Central Military Commission, state news agency Xinhua said.


The other new members of the Politburo Standing Committee - the innermost circle of power in China's authoritarian government - include premier-in-waiting Li Keqiang and financial guru Wang Qishan, who will be in charge of fighting corruption.


The number of members has been reduced to seven from nine, as expected, which should help ease consensus-building as they tackle everything from growing social unrest to uncertainty in the domestic and global economy.


North Korean-trained economist Zhang Dejiang is expected to head the largely rubber-stamp parliament, while Shanghai party boss Yu Zhengsheng is likely to head parliament's advisory body, according to the order in which their names were announced.


Tianjin party chief Zhang Gaoli and Liu Yunshan, a conservative who has kept domestic media on a tight leash, make up the rest of the group.


Xi will take over Hu's state position in March at the annual meeting of parliament, when Li will succeed Premier Wen Jiabao.


However, Guangdong's reform-minded party boss Wang Yang did not make it to the Standing Committee.


Advocates of reform are pressing Xi to cut back the privileges of state-owned firms, make it easier for rural migrants to settle in cities, fix a fiscal system that encourages local governments to live off land expropriations and, above all, tether the powers of a state that they say risks suffocating growth and fanning discontent.


With growing public anger and unrest over everything from corruption to environmental degradation, there may also be cautious efforts to answer calls for more political reform, though nobody seriously expects a move towards full democracy.


The party could introduce experimental measures to broaden inner-party democracy - in other words, encouraging greater debate within the party - but stability remains a top concern and one-party rule will be safeguarded.


(Additional reporting by Benjamin Kang Lim; Editing by Nick Macfie)


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Verizon says 1.4 million customers back on its fiber optic network
















(Reuters) – Verizon Communications said fiber optic services have been restored to more than 1.4 million customers hurt by Hurricane Sandy.


The provider of telephone, Internet and television services said on November 1 that it may take another two weeks to restore telecommunication services for its customers after flooding and power outages knocked out services.













The company said it completed 364,000 repairs across the mid-Atlantic and northeast regions.


Verizon said it will provide credits for landline customers and fix equipment damaged due to the hurricane.


Verizon shares were up at $ 42.39 after the bell on Wednesday. They closed at $ 42.24 on the New York Stock Exchange.


(Reporting By Pallavi Ail in Bangalore; Editing by Maju Samuel)


Internet News Headlines – Yahoo! News



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Hope Solo Weds Jerramy Stevens Amid Assault Allegations?















11/14/2012 at 06:35 PM EST







Jerramy Stevens and Hope Solo


NFL/Getty; Jeff Vinnick/Getty


One day after former Seattle Seahawks tight end Jerramy Stevens was arrested on suspicion of assaulting his fiancée, U.S. women's soccer team goalkeeper Hope Solo, the pair reportedly tied the knot.

"Confirmed," Sportsradio 950 AM and 102.9 FM radio host Dave Mahler Tweeted on Tuesday. "Jerramy Stevens and Hope Solo were married tonight. Events of yesterday morning didn't change plans."

The pair, who had only been dating for about two months, applied for a marriage license last Thursday. According to court documents, the athletes were arguing over whether to wed in Florida or Washington State.

Stevens, 33, was reportedly released from custody by a Kirkland, Wash., Municipal Court judge on Tuesday after determining there wasn't enough evidence to hold the former football star.

All of the former Dancing with the Stars contestant's social media pages have gone silent since Nov. 6., and calls to her rep have not been returned.

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New gene triples risk for Alzheimer's disease

Scientists have identified a new gene variant that seems to strongly raise the risk for Alzheimer's disease, giving a fresh target for research into treatments for the mind-robbing disorder.

The problem gene is not common — less than 1 percent of people are thought to have it — but it roughly triples the chances of developing Alzheimer's compared to people with the normal version of the gene. It also seems to harm memory and thinking in older people without dementia.

The main reason scientists are excited by the discovery is what this gene does, and how that might reveal what causes Alzheimer's and ways to prevent it. The gene helps the immune system control inflammation in the brain and clear junk such as the sticky deposits that are the hallmark of the disease. Mutations in the gene may impair these tasks, so treatments to restore the gene's function and quell inflammation may help.

"It points us to potential therapeutics in a more precise way than we've seen in the past," said Dr. William Thies, chief medical and scientific officer of the Alzheimer's Association, which had no role in the research. Years down the road, this discovery will likely be seen as very important, he predicted.

It is described in a study by an international group published online Wednesday by the New England Journal of Medicine.

About 35 million people worldwide have dementia, and Alzheimer's is the most common type. In the U.S., about 5 million have Alzheimer's. Medicines such as Aricept and Namenda just temporarily ease symptoms. There is no known cure.

Until now, only one gene — ApoE — has been found to have a big impact on Alzheimer's risk. About 17 percent of the population has at least one copy of the problem version of this gene but nearly half of all people with Alzheimer's do. Other genes that have been tied to the disease raise risk only a little, or cause the less common type of Alzheimer's that develops earlier in life, before age 60.

The new gene, TREM2, already has been tied to a couple other forms of dementia. Researchers led by deCODE Genetics Inc. of Iceland honed in on a version of it they identified through mapping the entire genetic code of more than 2,200 Icelanders.

Further tests on 3,550 Alzheimer's patients and more than 110,000 people without dementia in several countries, including the United States, found that the gene variant was more common in Alzheimer's patients.

"It's a very strong effect," raising the risk of Alzheimer's by three to four times — about the same amount as the problem version of the ApoE gene does, said Dr. Allan Levey, director of an Alzheimer's program at Emory University, one of the academic centers participating in the research.

Researchers also tested more than 1,200 people over age 85 who did not have Alzheimer's disease and found that those with the variant TREM2 gene had lower mental function scores than those without it. This adds evidence the gene variant is important in cognition, even short of causing Alzheimer's.

"It's another piece in the puzzle. It suggests the immune system is important in Alzheimer's disease," said Andrew Singleton, a geneticist with the National Institute on Aging, which helped pay for the study.

One prominent scientist not involved in the study — Dr. Rudolph Tanzi, a Harvard Medical School geneticist and director of an Alzheimer's research program at Massachusetts General Hospital — called the work exciting, but added a caveat.

"I would like to see more evidence that this is Alzheimer's" rather than one of the other dementias already tied to the gene, Tanzi said. Autopsy or brain imaging tests can show whether the cases attributed to the gene variant are truly Alzheimer's or misdiagnosed, he said.

___

Online:

Medical journal: http://www.nejm.org

Alzheimer's info: http://www.alzheimers.gov

Alzheimer's Association: http://www.alz.org

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Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Wall Street drops on deficit, Middle East concerns

NEW YORK (Reuters) - Stocks slid on Wednesday with declines accelerating after President Barack Obama set up a drawn-out fight over the fiscal cliff when he stuck to his pledge to raise taxes on the wealthy, and as violence increased in the Middle East.


Obama, in his first press conference since re-election, held to his position that marginal tax rates will have to rise to tackle the nation's deficits.


With talks over solving the U.S. "fiscal cliff" in early stages, investors are reacting to the uncertainty by shedding positions.


"I think we will have a last-minute cliffhanger solution," said Michael Cheah, portfolio manager at SunAmerica Asset Management in Jersey City, New Jersey, about a deal to avoid the so-called cliff.


"In the meantime, the market is going to get punched every day."


Without a deal, a series of mandated tax hikes and spending cuts will start to take effect early next year that could push the U.S. economy into a recession.


Taxes on capital gains and dividends could rise as part of the negotiations, pushing investors to sell this year and pay lower taxes on their gains.


Adding to the selling pressure, Israel launched a major offensive against Palestinian militants in Gaza, killing the military commander of Hamas in an air strike and threatening an invasion of the enclave. Egypt said it recalled its ambassador from Israel in response.


"We know Europe's in trouble, China's slowing down ... and now you've got the Middle East flaring up again. It's all hitting at once, and obviously, the market is taking a 'sell first, ask questions later' approach," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati.


Industrial shares led the decline, dragged lower in part by a 1 percent spike in crude prices after the Israeli offensive on Gaza. The S&P industrial sector index <.gspi> fell 2.5 percent.


Wall Street had opened higher after Dow component Cisco Systems Inc reported first-quarter earnings and revenue late Tuesday that beat expectations, driving its stock up 4.8 percent to $17.66. But the positive momentum was short-lived.


The Dow Jones industrial average <.dji> fell 185.23 points, or 1.45 percent, to 12,570.95 at the close. The S&P 500 <.spx> dropped 19.04 points, or 1.39 percent, to 1,355.49. The Nasdaq Composite <.ixic> lost 37.08 points, or 1.29 percent, to 2,846.81.


Both the Dow industrials and the Nasdaq ended at their lowest levels since late June.


The S&P 500 has fallen 5.1 percent in the six sessions since election night. Wednesday marked the benchmark index's lowest close since July 25.


The Russell 2000 <.rut> tumbled 2 percent. The Dow Jones Transportation average <.djt> slid 2.6 percent. FedEx Corp shares dropped 3.7 percent to $87.12. Bank of America shares lost 3.6 percent to $8.99.


In contrast, Facebook shares jumped 12.6 percent to $22.36 as investors were relieved that expiring trading restrictions on a huge block of shares did not trigger an immediate wave of insider selling.


Teen clothing retailer Abercrombie & Fitch Co jumped 34.4 percent to $41.92 after the company reported unexpectedly improved third-quarter results and a full-year outlook that exceeded Wall Street's forecasts.


About 7.53 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 6.51 billion shares.


On the NYSE, decliners outnumbered advancers by a ratio of almost 9 to 1. On the Nasdaq, about four stocks fell for every one that rose.


(Reporting by Rodrigo Campos; Additional reporting by Steven C. Johnson and Leah Schnurr; Editing by Jan Paschal)


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France recognizes new Syria opposition

CAIRO/PARIS (Reuters) - France became the first European power to recognize Syria's new opposition coalition as the sole representative of its people and said on Tuesday it would look into arming rebels against President Bashar al-Assad once they form a government.


Twenty months into their bloody uprising against Assad, fragmented Syrian opposition groups struck a deal in Qatar on Sunday to form a broad coalition and their leader immediately appealed for European backing.


"I announce today that France recognizes the Syrian National Council as the sole legitimate representative of the Syrian people and as future government of a democratic Syria making it possible to bring an end to Bashar al-Assad's regime," French President Francois Hollande said, breaking ranks with European allies. Six Gulf Arab states took a similar step on Monday.


The question of arming the rebels would be looked at as soon as the rebel coalition formed a transitional government, Hollande told a news conference in Paris.


Arab League and EU foreign ministers meeting in Cairo on Tuesday welcomed the formation of the coalition as an important step forward, although their communiqué showed they had not reached a unanimous decision to recognize it as Syria's sole authority.


The French announcement came just hours after Syria's newly installed opposition leader urged European states to back the opposition so it could buy weapons.


Paris, one of Assad's harshest critics, had previously ruled out arming rebel forces, concerned that weapons could get into the hands of radical Islamists.


Speaking to Reuters as Arab and European ministers met to discuss Syria at the Arab League in Cairo, Mouaz Alkhatib, the Damascus preacher elected unopposed on Sunday to lead the new group, had asked for diplomatic backing.


"I request European states to grant political recognition to the coalition as the legitimate representative of the Syrian people and to give it financial support," he said.


"When we get political recognition, this will allow the coalition to act as a government and hence acquire weapons and this will solve our problems," added Alkhatib, who has been described by supporters as a moderate noted for his embrace of Syria's religious and ethnic minorities.


So far, concerted action on Syria has been thwarted by divisions within the opposition, as well as by big power rivalries and a regional divide between Sunni Muslim foes of Assad and his Shi'ite allies in Iran and Lebanon.


Russia and China, which have lent Assad diplomatic support since the uprising erupted in March last year, have shown no sign of warming towards his Western- and Arab-backed opponents.


"STEP FORWARD"


Cajoled by Qatar and the United States, the ineffectual Syrian National Council, previously the main opposition body based abroad, agreed to join a wider coalition on Sunday.


Britain's foreign minister, William Hague, said the coalition must show it had support within Syria before London would acknowledge it as the rightful government.


"If they have this, yes, we will then recognize them as the legitimate representative of the Syrian people," he told reporters at the Arab-European meeting in Cairo.


The opposition had hoped its new-found unity would clear the way for outside powers to arm the rebels, but Western nations fear such weapons could reach the hands of Islamist militants.


Western concern has also been heightened by documented reports of atrocities by ill-disciplined insurgents.


"Syria's newly created opposition front should send a clear message to opposition fighters that they must adhere to the laws of war and human rights law, and that violators will be held accountable," New York-based Human Rights Watch said.


BORDER VIOLENCE


Assad, whose family has ruled Syria for 42 years, has vowed to fight to the death in a conflict that has already killed an estimated 38,000 people and risks sucking in other countries.


His warplanes again struck homes in Ras al-Ain, a town on the northern border seized by rebels last week. Civilians fled over the border dividing it from the Turkish town of Ceylanpinar and thick plumes of smoke billowed upwards.


Syrian jets and artillery hit the town of Albu Kamal on the frontier with Iraq, where rebels have seized some areas, according to the mayor of the Iraqi border town of Qaim.


Tension also remained high on the Golan Heights, where Israeli gunners have retaliated against stray Syrian mortar fire landing on the occupied plateau in the previous two days.


Twenty months of conflict have created a vast humanitarian crisis, with more than 408,000 Syrians fleeing to neighboring countries and up to four million expected to need aid by early next year, according to the United Nations.


Fighting has also displaced 2.5 million civilians inside Syria, the Syrian Arab Red Crescent estimates.


"If anything, they believe it could be more; this is a very conservative estimate," Melissa Fleming, chief spokeswoman of the U.N. High Commissioner for Refugees, said in Geneva.


"So people are moving, really on the run, hiding," she told a news briefing. "They are difficult to count and access."


In Cairo, Arab League chief Nabil Elaraby urged opposition factions to join Alkhatib's group, formally known as the Syrian National Coalition for Opposition and Revolutionary Forces.


But although six Gulf Arab nations recognized the coalition as Syria's only legitimate representative on Monday, Iraq, Algeria and Lebanon prevented the League from following suit.


Iraq and Lebanon, with influential Shi'ite populations, have generally maintained better relations with Iran and with Assad, whose minority Alawite sect is an offshoot of Shi'ite Islam.


(Additional reporting by Shaimaa Fayed in Cairo and Jonathon Burch in Ceylanpinar, Turkey; Writing by Giles Elgood; Editing by Peter Graff)


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RIM to release new BlackBerrys soon after Jan. 30
















TORONTO (AP) — Research In Motion Ltd. will release its much-delayed BlackBerry 10 smartphones “not too long” after a launch event on Jan. 30, a senior executive said Tuesday.


Chief Operating Officer Kristian Tear said the company is still fine-tuning the new phones.













The new phones are seen as critical to RIM‘s survival as the smartphone pioneer struggles in North America to hold on to customers who are abandoning BlackBerrys for flashier iPhones and Android phones. The new BlackBerry 10 system is designed for the touch screen, Internet browsing and apps experience that customers now expect. RIM’s current software is still focused on email and messaging and is less user-friendly, agile and robust than iPhone or Android.


On Monday, RIM said details on the BlackBerry 10, including specific availability, will be announced at the event. A touch-screen-only device is expected to be released first followed shortly after by a version with a physical keyboard. Many people still gravitate to BlackBerrys specifically for their physical keyboards, and RIM hasn’t succeeded in the past with touch-only offerings.


Tear said RIM wants to be the No. 1 mobile computing platform, despite the dominance of Apple and Android. He said the Waterloo, Ontario-based company believes it can compete with Silicon Valley because it has access to a lot of talented people and two great universities in the area. He said he’s been involved in two turnarounds before with Sony Ericsson and Ericsson and believes in RIM’s new management.


“It’s not going to be easy,” Tear said. “But everybody is super-focused and super-commited. We’re going to show the world that we are turning this around.”


Steve Zipperstein, RIM’s new chief legal officer, said RIM invented the smartphone and has been the innovator in the mobile space for a long time.


“We’re not going away,” Zipperstein vowed. “We’re going to succeed with BB 10. We’re going to impress our customers. We’re going to fight every day.”


Tear and Zipperstein were hired this past summer by CEO Thorsten Heins, who took over RIM in January after it lost tens of billions of dollars in market value. Heins had vowed to do everything he could to release BlackBerry 10 this year but said in June that the timetable wasn’t realistic. The new BlackBerrys will be released after the holiday shopping season and well after Apple’s September launch of the iPhone 5.


Heins is counting on BlackBerry 10 for a turnaround.


RIM’s platform transition is happening under a new management team and as RIM lays off 5,000 employees as part of a bid to save $ 1 billion this year.


RIM was once Canada‘s most valuable company with a market value of more than $ 80 billion in 2008, but the stock has plummeted since, from over $ 140 per share to around $ 8. Its decline evokes memories of Nortel, another former Canadian tech giant, which declared bankruptcy in 2009.


RIM’s stock fell 41 cents, or 4.7 percent, to close at $ 8.40 Tuesday in New York after rising as high as $ 9.07 the previous day, when RIM announced its Jan. 30 launch date.


Gadgets News Headlines – Yahoo! News



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The Voice Sends Two Contestants Home






The Voice










11/13/2012 at 10:20 PM EST







Adam Levine and Christina Aguilera


Christopher Polk/Getty


It was a great night for Teams Cee Lo and Adam on The Voice Tuesday. And though not everyone got good news on elimination night, there were plenty of entertaining performances from the coaches and contestants alike.

To open the night, Christina Aguilera and Green performed the world premiere of "Make the World Move," from her new album Lotus. Guest Jason Aldean also took the stage, and Blake Shelton rocked out with his team to Tom Cochrane's "Life is a Highway."

Green's Trevin Hunte, Nicholas David and Cody Belew came together for a '70s inspired – bell bottoms and all! – performance of the Bee Gee's "Stayin' Alive." But was it a sign of things to come? Keep reading for all the results ...

All of Green's singers as well as Levine's Bryan Keith, Melanie Martinez and Amanda Brown felt the love from viewers at home, and will have another shot at next week's show.

America also saved Aguilera's Sylvia Yacoub and Dez Duron, and Shelton's Cassadee Pope and Terry McDermott.

But without enough votes to keep them in the competition, Team Aguilera's Adriana Louise and Team Blake's Michaela Paige said goodbye.

Aguilera consoled Louise by reminding her that even she didn't win Star Search, but still made it to superstardom. Louise was grateful for all her coach's support. "You believed in me more than I believed in myself," she told Aguilera through tears.

Paige also enjoyed an uplifting experience on The Voice. "If I inspired anyone, that's all I wanted to do," Paige said. "Follow your dreams and believe in your heart." But her coach Shelton isn't too concerned about the aspiring singer's future.

"Her big old mohawk is going to be walking across the stage at the Grammys," he said, "and I can't wait."

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Report: FDA wanted to close Mass pharmacy in 2003

WASHINGTON (AP) — Nearly a decade ago, federal health inspectors wanted to shut down the pharmacy linked to a recent deadly meningitis outbreak until it cleaned up its operations, according to congressional investigators.

About 440 people have been sickened by contaminated steroid shots distributed by New England Compounding Center, and more than 32 deaths have been reported since the outbreak began in September, according to the Centers for Disease Control and Prevention. That has put the Framingham, Mass.-based pharmacy at the center of congressional scrutiny and calls for greater regulation of compounding pharmacies, which make individualized medications for patients and have long operated in a legal gray area between state and federal laws.

The House Energy and Commerce Committee released a detailed history of NECC's regulatory troubles on Monday, ahead of a meeting Wednesday meeting to examine how the outbreak could have been prevented. The 25-page report summarizes and quotes from FDA and state inspection memos, though the committee declined to release the original documents.

The report shows that after several problematic incidents, Food and Drug Administration officials in 2003 suggested that the compounding pharmacy be "prohibited from manufacturing" until it improved its operations. But FDA regulators deferred to their counterparts in Massachusetts, who ultimately reached an agreement with the pharmacy to settle concerns about the quality of its prescription injections.

The congressional report also shows that in 2003 the FDA considered the company a pharmacy. That's significant because in recent weeks public health officials have charged that NECC was operating more as a manufacturer than a pharmacy, shipping thousands of doses of drugs to all 50 states instead of small batches of drugs to individual patients. Manufacturers are regulated by the FDA and are subject to stricter quality standards than pharmacies.

The report offers the most detailed account yet of the numerous regulatory complaints against the pharmacy, which nearly date back to its founding in 1998. Less than a year later, the company was cited by the state pharmacy board for providing doctors with blank prescription pads with NECC's information. Such promotional items are illegal in Massachusetts and the pharmacy's owner and director, Barry Cadden, received an informal reprimand, according to documents summarized by the committee.

Cadden was subject to several other complaints involving unprofessional conduct in coming years, but first came to the FDA's attention in 2002. Here are some key events from the report highlighting the company's early troubles with state and federal authorities:

__ In March of 2002 the FDA began investigating reports that five patients had become dizzy and short of breath after receiving NECC's compounded betamethasone repository injection, a steroid used to treat joint pain and arthritis that's different from the one linked to the current meningitis outbreak.

FDA inspectors visited NECC on April 9 and said Cadden was initially cooperative in turning over records about production of the drug. But during a second day of inspections, Cadden told officials "that he was no longer willing to provide us with any additional records," according to an FDA report cited by congressional investigators. The inspectors ultimately issued a report citing NECC for poor sterility and record-keeping practices but said that "this FDA investigation could not proceed to any definitive resolution," because of "problems/barriers that were encountered throughout the inspection."

__ In October of 2002, the FDA received new reports that two patients at a Rochester, N.Y., hospital came down with symptoms of bacterial meningitis after receiving a different NECC injection. The steroid, methylprednisolone acetate, is the same injectable linked to the current outbreak and is typically is used to treat back pain. Both patients were treated with antibiotics and eventually recovered, according to FDA documents cited by the committee.

When officials from the FDA and Massachusetts Board of Pharmacy visited NECC later in the month, Cadden said vials of the steroid returned by the hospital had tested negative for bacterial contamination. But when FDA scientists tested samples of the drug collected in New York they found bacterial contamination in four out of 14 vials sampled. It is not entirely clear whether FDA tested the same lot shipped to the Rochester hospital.

__ At a February 2003 meeting between state and federal officials, FDA staff emphasized "the potential for serious public consequences if NECC's compounding practices, in particular those relating to sterile products, are not improved." The agency issued a list of problems uncovered in its inspection to NECC, including a failure to verify if sterile drugs met safety standards.

But the agency decided to let Massachusetts officials take the lead in regulating the company, since pharmacies are typically regulated at the state level. It was decided that "the state would be in a better position to gain compliance or take regulatory action against NECC as necessary," according to a summary of the meeting quoted by investigators.

The FDA recommended the state subject NECC to a consent agreement, which would require the company to pass certain quality tests to continue operating. But congressional investigators say Massachusetts Board of Pharmacy did not take any action until "well over a year later."

__ In October 2004, the board sent a proposed consent agreement to Cadden, which would have included a formal reprimand and a three-year probationary period for the company's registration. The case ended without disciplinary action in 2006, when NECC agreed to a less severe consent decree with the state.

Massachusetts officials indicated Tuesday they are still investigating why NECC escaped the more severe penalty.

"I will not be satisfied until we know the full story behind this decision," the state's interim health commissioner Lauren Smith said in a transcript of her prepared testimony released a day ahead of delivery. Smith is one of several witnesses scheduled to testify Wednesday, including FDA Commissioner Margaret Hamburg.

The committee will also hear from the widow of 78-year-old Eddie C. Lovelace, a longtime circuit court judge in southern Kentucky. Autopsy results confirmed Lovelace received fungus-contaminated steroid injections that led to his death Sept. 17.

Joyce Lovelace will urge lawmakers to work together on legislation to stop future outbreaks caused by compounded drugs, according to a draft of her testimony.

"We now know that New England Compounding Pharmacy, Inc. killed Eddie. I have lost my soulmate and life's partner with whom I worked side by side, day after day for more than fifty years," Lovelace states.

Barry Cadden is also scheduled to appear at the hearing, after lawmakers issued a subpoena to compel him to attend.

The NECC has been closed since early last month, and Massachusetts officials have taken steps to permanently revoke its license. The pharmacy has recalled all the products it makes, including 17,700 single-dose vials of a steroid that tested positive for the fungus tied to the outbreak.

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Microsoft leads Wall Street lower, but retailers gain

NEW YORK (Reuters) - Stocks sold off late in the session on Tuesday, led by a slide in Microsoft shares, though retailers were a notable bright spot after Home Depot raised its outlook.


Microsoft Corp was the most actively traded on Nasdaq, weighing on the tech-heavy Nasdaq Composite after the surprising departure of a key executive. The stock fell 3.2 percent to $27.09.


After the closing bell, Cisco Systems shares rose 6.8 percent to $18 after it reported quarterly revenue and earnings that beat analysts' estimates.


Home Depot shares hit during the regular session levels not seen since April 2000 and the company's raised outlook suggested a revival in the long-dormant U.S. housing market. The S&P retail sector index <.spxrt> advanced 1 percent.


"Home Depot did say something about housing, which was perceived as positive and was behind the earlier rally," said Richard Sichel, chief investment officer at Philadelphia Trust Co.


"That was tempered by Microsoft, to some extent, and probably more so by the 'fiscal cliff,'" he said.


The S&P 500 is down 2.7 percent so far this month and closed below its 200-day moving average for a fourth day in a row, a technical indicator that suggests the recent declines could gain momentum. The moving average is currently at 1,381.58, and failure to rise above that level suggests market weakness.


Concerns about the looming "fiscal cliff" kept investor activity subdued as lawmakers returned to Washington after the November 6 election, when President Barack Obama won a second term while Democrats added to their margin in the U.S. Senate and picked up seats in the House of Representatives.


The market is grappling with how a divided U.S. Congress will deal with the series of mandated tax hikes and spending cuts that start to take effect next year and could take the world's largest economy back into recession. However, serious negotiations are still weeks away, analysts said.


The Dow Jones industrial average <.dji> fell 58.90 points, or 0.46 percent, to 12,756.18 at the close. The S&P 500 <.spx> dropped 5.50 points, or 0.40 percent, to 1,374.53. The Nasdaq Composite <.ixic> lost 20.37 points, or 0.70 percent, to 2,883.89.


Dow component Home Depot Inc raised its full-year outlook even before accounting for any future lift in sales in the aftermath of super storm Sandy, as the retailer benefited from a recent uptick in the U.S. housing market. Home Depot's stock rose 3.6 percent to $63.38, its highest close in more than 12 years.


TJX Cos , which owns the Marshalls and T.J. Maxx retail chains, reported results that beat analysts' forecasts and its shares added 2.7 percent to $42.06.


Microsoft shares fell after Steve Sinofsky, head of the Windows unit, left the company. Sinofsky was considered the driving force behind Windows, the company's biggest product.


Technology shares led the market's decline, with an S&P technology index <.gspt> down 0.8 percent.


AK Steel Holding shares fell 17.6 percent to $4.50 after the company forecast a fourth-quarter loss.


Just over 6.2 billion shares changed hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, below the daily average during November last year of 7.33 billion shares.


More than two issues fell for every one that rose on both the NYSE and the Nasdaq.


(Reporting by Rodrigo Campos; Editing by Jan Paschal)


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