Wall Street flat after claims data, retailers' sales

NEW YORK (Reuters) - Stocks were little changed on Thursday after data showed modest improvement in the labor market and retailers posted mixed monthly sales.

Weekly initial jobless claims dipped last week, with the four-week moving average falling to its lowest level since March 2008, signaling the economy continues to recover slowly.

A separate report said fourth-quarter productivity registered its biggest drop in nearly two years, while unit labor costs jumped 4.5 percent, more than economists expected.

"Claims didn't look too exciting. They are pretty much in line. The bigger surprise was the jump in unit labor costs that was pretty substantial," said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.

"Overall the market took the whole thing in stride."

Recent data has pointed to a slow improvement in the economy, but one without enough strength to cause the Federal Reserve to abandon its easy monetary policy, which has helped the benchmark S&P index to climb 6 percent this year.

"We are probably in a pretty stable policy regime from the Fed standpoint, certainly until midyear, then as we get later in the year if we are seeing the economy picking up, then maybe they start taking their foot off the accelerator a little bit," said Jankovskis.

Several U.S. retailers reported mixed January sales results, as consumers faced a hit to their take-home pay from higher payroll taxes. The S&P retail index <.spxrt> gained 0.3 percent.

Macy's Inc rose 1.4 percent to $40.04 after reporting January same store sales rose 11.7 percent.

But Ann Inc dropped 7.9 percent to $30.20 after forecasting fourth-quarter sales below analysts' expectations.

The Dow Jones industrial average <.dji> dropped 13.90 points, or 0.10 percent, to 13,972.62. The Standard & Poor's 500 Index <.spx> dropped 0.43 points, or 0.03 percent, to 1,511.69. The Nasdaq Composite Index <.ixic> dropped 3.04 points, or 0.10 percent, to 3,165.43.

Fund manager David Einhorn's Greenlight Capital on Thursday said it has sued Apple Inc and said the company needs to do more to unlock value for shareholders. Apple shares gained 1 percent to $459.27.

Akami Technologies Inc lost 17.8 percent to $34.17 as the worst performer on the S&P 500 after the Internet content delivery company forecast current-quarter revenue below analysts' expectations.

According to Thomson Reuters data through Thursday morning, of 317 companies in the S&P 500 that have reported earnings, 69 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters.

Fourth-quarter earnings for S&P 500 companies rose 5 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

The European Central Bank held its main interest rate unchanged at 0.75 percent, as expected.

(Reporting by Chuck Mikolajczak; Editing by Chizu Nomiyama and Kenneth Barry)

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Signing Day: Ole Miss muscles in on power programs

Alabama. Ohio State. Michigan. Florida. Notre Dame. Mississippi?

Ole Miss muscled in on the powerhouses that usually dominate national signing day, landing some of the most sought-after prospects in the country on college football's annual first-Wednesday-in-February frenzy.

The Rebels, coming off a promising 7-6 season in their first season under coach Hugh Freeze, had the experts swooning by signing three of the bluest chips still on the board and building a well-rounded class otherwise.

"I do think (this class) has the possibility of being a program changer," Freeze said. "But it's all on paper right now.

The day started with defensive end Robert Nkemdiche from Loganville, Ga., rated the No. 1 recruit in the country by just about everyone who ranks them, deciding to join his brother, Denzel, in Oxford, Miss.

"I feel like it's the right place for me," Nkemdiche said after slipping on a red Ole Miss cap. "I feel like they can do special things and they're on the rise. I feel like going to play with my brother, we can do something special."

Nkemdiche originally committed to Clemson last year, then backed off that and narrowed his picks down to LSU, Florida and Mississippi — and the Rebels beat the big boys.

They weren't done. Coaches in the Ole Miss war room were exchanging hugs and high-fives again a couple hours later when Laremy Tunsil, a top-rated offensive tackle from Lake City, Fla., picked the Rebels over Florida State and Georgia.

"Tunsil to Ole Miss I think was the biggest surprise of the whole (recruiting season)," said JC Shurburtt, national recruiting director for 247Sports.com.

And, as if the Ole Miss needed more good news, highly touted defensive back Antonio Conner from nearby Batesville, Miss., chose the Rebels over national champion Alabama.

Ole Miss also landed Laquon Treadwell from Crete, Ill., one of the best receiver prospects in the country. He made a verbal commitment to the Rebels back in December, and sealed the deal Wednesday, the first day high school players can sign binding letters of intent.

The end result was a class good enough to even catch the attention of LeBron James.

"Ole Miss ain't messing around today! Big time recruits coming in. SEC is crazy," the NBA MVP posted on his Twitter account.

Crazy good. While the Rebels racked up, it's important to remember they still have plenty of ground to gain on the rest of their conference.

Nick Saban reloaded the Crimson Tide with a class that Rivals.com ranked No. 1 in the country.

SEC powers Florida, LSU and Georgia pulled in typically impressive classes. SEC newcomer Texas A&M cracked the top 10 of several rankings. Even Vanderbilt, coming off a nine-win season, broke into the top 25.

It's the cycle of life in the SEC, which has won seven straight BCS championships. Stock up on signing day and scoop up those crystal footballs at season's end.

___

SLIPPING AWAY FROM USC

Signing day didn't do much to soothe the scars left from a difficult season for Southern California.

NCAA sanctions limited the number of scholarships coach Lane Kiffin and the Trojans could hand out this year, and then as signing day approached USC had several players who had given verbal commitments change their minds.

The most notable defection on signing day was five-star defensive back Jalen Ramsey of Brentwood, Tenn., who flipped to Florida State. Defensive end Jason Hatcher from Louisville, Ky., bailed on USC and signed with Kentucky, and defensive end Torrodney Prevot from Houston not only reneged on his USC commitment, but he landed at Pac-12-rival Oregon.

"People expected (Prevot) to flip from USC, but they thought it would be to Texas A&M," Shurburtt said.

USC's class won't be lacking blue chippers. Quarterback Max Browne from Washington is considered the next in a long line of topflight Trojans quarterbacks, and Kenny Bigelow from Maryland is rated among the best defensive linemen in the nation.

Kiffin will be banking on quality to make up for the lack of quantity, but that's a precarious way to play a game as uncertain as recruiting.

____

IF MOMMA'S NOT HAPPY ...

Alex Collins, a top running back prospect out of Plantation, Fla., announced on Monday night that he was going to Arkansas instead of Miami.

It was considered a huge victory for new Razorbacks coach Bret Bielema.

But on Wednesday morning, when it was time to make it official, Collins' letter of intent didn't come spinning through the fax machine in Fayetteville, Ark.

There were some odd reports about Collins' mother not being happy with her son's decision to go so far from home.

College coaches aren't allowed to talk about specific players before they sign, but Bielema did acknowledge during his signing day news conference that Arkansas' class of 22 players could "grow by one."

___

THE BIG TWO

Ohio State and Michigan received two thumbs up from experts on their signing day classes. They all had the Buckeyes and Wolverines around top five in the country.

After that, there was a drop off. Nebraska received solid grades and Penn State, despite NCAA sanctions that limited its class to 17 signees, held up pretty well.

"That's a tribute to the job (Penn State coach) Bill O'Brien and the staff did," Shurburtt said.

But signing day 2013 signaled that Urban Meyer's Buckeyes and Brady Hoke's Wolverines are primed to pull away from most of the Big Ten, and maybe — just maybe — give the league a team or two that can challenge those SEC teams for a national title.

___

BUILT TO LAST

Notre Dame followed up its best season in more than two decades with a recruiting class that coach Brian Kelly hopes can keep the Fighting Irish contending for more national titles.

The class includes a famous name in Torii Hunter Jr., the son of the All-Star outfielder. Hunter Jr. is a top-notch receiver prospect, though he broke his leg during an All-Star game and it could be a while before he's back on the football field.

Linebacker Jaylon Smith from Fort Wayne, Ind., is generally regarded as the jewel of a class that experts have ranked among the best in the country.

"I love agreeing with experts," Kelly said.

___

BASEBALL OR FOOTBALL?

Oklahoma hopes it has found the next Sam Bradford in Cody Thomas, a pocket passer from Colleyville, Texas.

One small problem. Thomas is also a big-time baseball player who could draw interest in the major league draft this summer.

"We wouldn't have pursued him if we didn't feel there was a great chance he'd be playing football," Oklahoma coach Bob Stoops said.

___

QUOTABLE

South Carolina coach Steve Spurrier said recruiting classes "don't always pan out. Of course, they always seem to pan out at Alabama."

___

AP Sports Writer David Brandt in Oxford, Miss., and Associated Press Writer Tom Coyne in South Bend, Ind., contributed.

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Follow Ralph D. Russo at www.Twitter.com/ralphdrussoap

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Ex-L.A. police officer suspected in cop killing, other shootings

A manhunt is under way for a double murder suspect, himself a former LAPD officer, after three officers were shot overnight, one fatally.

A massive manhunt is under way for a double murder suspect in California, himself a former Los Angeles police officer, after three cops were shot overnight, one fatally.

The suspect was already wanted for allegedly killing the daughter of a former Los Angeles Police Department captain as well as the woman’s fiance in Irvine, Calif., over the weekend.

The three new shootings occurred in Riverside County, Calif. One LAPD officer was grazed east of Los Angeles, in the area of Magnolia and the 15 Freeway in Corona, law enforcement sources said. Then sometime later, two Riverside Police Department officers were shot in Riverside. One of those officers died, sources said.

Police have launched a manhunt for the suspect, Christopher Jordan Dorner, 33.

Police said they are searching for Dorner, whose last known address is in La Palma, and said he drives a blue 2005 Nissan Titan pickup with California license 7X03191. He is described as a 6-foot tall African American man weighing about 270 pounds, with black hair and brown eyes.

Anyone with information is asked to call a tip line at (714) 724-7192.Irvine police on Wednesday night named  Dorner as the suspect in the double slaying in the parking lot of an upscale Irvine apartment complex Sunday. Officials warned that Dorner is armed and dangerous. Law enforcement sources said police have placed security at the homes of LAPD officials named in the manifesto and believe Dorner has numerous weapons.

In the online postings, according to the Los Angeles Times, Dorner specifically named the father of Monica Quan, the Cal State Fullerton assistant basketball coach who was found dead Sunday, along with her fiance, Keith Lawrence.

Randy Quan, a retired LAPD captain, was involved in the review process that ultimately led to Dorner’s dismissal.

A former U.S. Navy reservist, Dorner was fired in 2009 for allegedly making false statements about his training officer.

Dorner said in his online postings that being a police officer had been his life’s ambition since he served in the Police Explorers program. Now that had been taken away from him, he said, and he suffered from severe depression and was filled with rage over the people who forced him from his job.

Dorner complained that Quan and others did not fairly represent him at the review hearing.

“Your lack of ethics and conspiring to wrong a just individual are over. Suppressing the truth will leave to deadly consequences for you and your family. There will be an element of surprise where you work, live, eat, and sleep,” he wrote, referring to Quan and several others.

“I never had the opportunity to have a family of my own, I'm terminating yours,” he added.

Quan apparently served as Dorner’s representative, according to the manifesto. Of Quan, Dorner wrote: “He doesn't work for you, your interest, or your name. He works for the department, period. His job is to protect the department from civil lawsuits being filed and their best interest which is the almighty dollar. His loyalty is to the department, not his client.”

In the document, he threatens violence against other police officers.

“The violence of action will be high.... I will bring unconventional and asymmetrical warfare to those in LAPD uniform whether on or off duty,” Dorner wrote.

In his manifesto, Dorner seemed to allude to the Irvine slaying.

“I know most of you who personally know me are in disbelief to hear from media reports that I am suspected of committing such horrendous murders and have taken drastic and shocking actions in the last couple of days,” he wrote.

“Unfortunately,” he added, “this is a necessary evil that I do not enjoy but must partake and complete for substantial change to occur within the LAPD and reclaim my name.”

Quan, 28, and Lawrence, 27, had recently become engaged and moved into the condominium complex near Concordia University, where they had played basketball and received their degrees, authorities said. Lawrence worked as a campus officer at USC.

Dorner’s LAPD case began when he lodged a complaint against his field training officer, Sgt. Teresa Evans. He accused her of kicking a suspect named Christopher Gettler. An LAPD Board of Rights found that the complaint was false and terminated his employment for making false statements. He appealed the action.

He testified that he graduated from the Police Academy in February 2006 and left for a 13-month military deployment in November 2006.

“This is my last resort,” he wrote. “The LAPD has suppressed the truth and it has now led to deadly consequences.”

Dorner said it was the LAPD’s fault that he lost his law enforcement and Navy careers, as well as his relationships with family and close friends. Dorner wrote that he began his law enforcement career in February 2005 and that it ended in January 2009. His Navy career began in April 2002 and ended this month.

“I lost everything,” he said, “because the LAPD took my name and knew I was innocent.”

Los Angeles Times and KTLA

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Khamenei rebuffs U.S. offer of direct talks

DUBAI (Reuters) - Iran's highest authority, Ayatollah Ali Khamenei, on Thursday slapped down an offer of direct talks made by U.S. Vice President Joe Biden this week, saying they would not solve the problem between them.

"Some naive people like the idea of negotiating with America, however, negotiations will not solve the problem," Khamenei said in a speech to officials and members of Iran's air force carried on his official website.

"If some people want American rule to be established again in Iran, the nation will rise up to face them," he said.

"American policy in the Middle East has been destroyed and Americans now need to play a new card. That card is dragging Iran into negotiations."

Khamenei made his comments just days after Joe Biden said the United States was prepared to meet bilaterally with the Iranian leadership. "That offer stands but it must be real and tangible," Biden said in a speech in Munich.

With traditional fiery rhetoric, Khamenei lambasted Biden's offer, saying that since the 1979 revolution the United States had gravely insulted Iran and continued to do so with its threat of military action.

"You take up arms against the nation of Iran and say: 'negotiate or we fire'. But you should know that pressure and negotiations are not compatible and our nation will not be intimidated by these actions," he added.

Relations between Iran and the United States were severed in 1979 after the overthrow of Iran's pro-western monarchy and diplomatic meetings between officials have since been very rare.

ALL OPTIONS STILL "ON THE TABLE"

Currently U.S.-Iran contact is limited to talks between Tehran and a so-called P5+1 group of powers on Iran's disputed nuclear program which are to resume on February 26 in Kazakhstan.

Israel's Deputy Prime Minister Dan Meridor said he was skeptical the negotiations in Almaty could yield a result, telling Israel Radio that the United States needed to demonstrate to Iran that "all options were still on the table".

Israel, widely recognized to be the only nuclear power in the Middle East, has warned it could mount a pre-emptive strike on Iranian atomic sites. Israel sees its existence as directly threatened by the prospect of an nuclear-armed Iran, given Tehran's refusal to recognize the existence of the Jewish state.

"The final option, this is the phrasing we have used, should remain in place and be serious," said Meridor.

"The fact that the Iranians have not yet come down from the path they are on means that talks ...are liable to bring about only a stalling for time," he said.

Iran maintains its nuclear program is entirely peaceful but Western powers are concerned it is intent on developing a weapons program.

Many believe a deal on settling the nuclear issue is impossible without a U.S.-Iranian thaw. But any rapprochement would require direct talks addressing many sources of mutual mistrust that have lingered since Iran's 1979 Islamic Revolution and the subsequent U.S. embassy hostage crisis in Tehran.

Moreover, although his re-election last November may give President Barack Obama a freer hand to pursue direct negotiations, analysts say Iran's own presidential election in June may prove an additional obstacle to progress being made.

(Additional reporting by Dan Williams; Editing by William Maclean and Jon Boyle)

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Wall Street to open lower after Tuesday rally, results eyed

NEW YORK (Reuters) - Stocks were poised to open lower Wednesday, indicating the S&P 500 may retreat as it faces resistance to further gains beyond five-year highs in the wake of a 1-percent rally on Tuesday.

A 6-percent advance this year so far has lifted the S&P 500 index to its highest since December 2007, while the Dow <.dji> briefly climbed above 14,000, making it a challenge for investors to continue pushing the equity market upward amid a dearth of fresh trading incentives.

Walt Disney Co beat estimates for quarterly adjusted earnings and said it expected the next few quarters to be better, with a stronger lineup of movies and rising attendance at its theme parks. Shares advanced 2.8 percent to $55.81 in premarket trading.

"You knew a correction was coming; the question was whether they were going to tease you and get it close and then start selling it off or get it up to 14,000 and then start to make a move to the sell side," said Gordon Charlop, managing director at Rosenblatt Securities in New York.

"We got a quick move and it's really just not healthy for markets to go one way, so the idea that a little bit of a correction is due isn't troublesome to me at all."

According to Thomson Reuters data through Tuesday morning, of 278 companies in the S&P 500 <.spx> that have reported earnings, 68.7 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters. In terms of revenue, 66 percent of companies have topped forecasts.

In another positive sign for profits, fourth-quarter earnings for S&P 500 companies are now expected to grow 4.5 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

S&P 500 futures fell 6 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 51 points, and Nasdaq 100 futures declined 9.75 points.

The benchmark S&P index rose 1.04 percent Tuesday, its biggest percentage gain since a 2.5-percent advance on January 2, when legislators sidestepped a "fiscal cliff" of spending cuts and tax hikes that could have hurt a fragile U.S. economic recovery.

Visa , the world's largest credit and debit card network, is expected to report earnings per share of $1.79 for its first quarter, up from $1.49 a year earlier. Smaller rival MasterCard recently reported better-than-expected results but said its revenue growth could slow in the first half of the year due to economic uncertainty.

Ralph Lauren Corp climbed 5.5 percent to $174 in premarket trading after the fashion company and retailer reported holiday quarter sales and profits that showed renewed momentum.

Time Warner Inc gained 3.1 percent to $51.49 before the bell after reporting higher fourth-quarter profit that beat Wall Street estimates, as growth in its cable networks offset declines in its film, TV entertainment and publishing units.

(Editing by Bernadette Baum)

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Braun says he used Fla clinic owner as consultant

NEW YORK (AP) — Milwaukee Brewers slugger Ryan Braun said the person who ran the Florida clinic being investigated by Major League Baseball was used only as a consultant on his drug suspension appeal last year.

"I have nothing to hide," Braun said in a statement released by his representatives on Tuesday night.

Earlier in the day, Yahoo Sports reported the 2011 NL MVP's name showed up three times in records of the Biogenesis of America LLC clinic. Yahoo said no specific performance-enhancing drugs were listed next to his name.

The Miami New Times recently released clinic documents that purportedly linked Alex Rodriguez, Gio Gonzalez, Melky Cabrera and other players to purchases of banned drugs from the now-closed anti-aging center.

Rodriguez and Cabrera were on the list with Braun that also included New York Yankees catcher Francisco Cervelli and Baltimore Orioles infielder Danny Valencia.

Braun said his name was in the Biogenesis records because of an issue over payment to Anthony Bosch, who ran the clinic near Miami.

"There was a dispute over compensation for Bosch's work, which is why my lawyer and I are listed under 'moneys owed' and not on any other list," Braun said.

"I have nothing to hide and have never had any other relationship with Bosch," he said. "I will fully cooperate with any inquiry into this matter."

On Tuesday, MLB officials asked the Miami New Times for the records the alternative newspaper obtained for its story.

Asked specifically about Braun's name in the documents before the five-time All-Star released his statement, MLB spokesman Pat Courtney said: "Aware of report and are in the midst of an active investigation in South Florida."

Braun tested positive during the 2011 postseason for elevated testosterone levels. He maintained his innocence and his 50-game suspension was overturned during spring training last year when arbitrator Shyam Das ruled in favor of Braun due to chain of custody issues involving the sample.

With that, Braun became the first major leaguer to have a drug suspension overturned.

"During the course of preparing for my successful appeal last year, my attorneys, who were previously familiar with Tony Bosch, used him as a consultant. More specifically, he answered questions about T/E ratio and possibilities of tampering with samples," Braun said.

The T/E ratio is a comparison of the levels of testosterone to epitestosterone.

Braun led the NL in homers (41), runs (108) and slugging percentage (.595) last season while batting .319 with 112 RBIs and 30 stolen bases. He finished second to San Francisco catcher Buster Posey in MVP balloting."

Cervelli, who spent nearly all of last season in Triple-A, posted a statement on Twitter later Tuesday night.

"Following my foot injury in March 2011, I consulted with a number of experts, including BioGenesis Clinic, for (cont)," Cervelli posted, "(cont)legal ways to aid my rehab and recovery. I purchased supplements that I am certain were not prohibited by Major League Baseball."

An email sent to Valencia's agent was not returned.

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What follows N. Korea's nuclear test?

STORY HIGHLIGHTS

• Lopez: Uranium-based blast would pose new challenge to U.N. Security Council


• Indicates Pyongyang has advanced centrifuge technologies and related systems


• North Korea's young leader appears to care little about what U.N. or China think


• Product-based sanctions may stifle the North's ability to continue nuclear program

Editor's note: George A. Lopez holds the Hesburgh Chair in Peace Studies at the Kroc Institute, University of Notre Dame. He is a former member, U.N. Panel of Experts on North Korea, or the Democratic People's Republic of Korea (DPRK).

Indiana, U.S. (CNN) -- North Korea will soon test its third nuclear device. Earlier tests in 2006 and 2009 drew worldwide condemnation, Security Council sanctions and led Pyongyang to withdraw from the six-party talks.

In resolution 2087, passed on January 22, the Council imposed new sanctions on North Korea for its December 12 space missile launch and made clear that new violations would be dealt with harshly.

READ: N.Korea: Close to nuclear missile?

In response, North Korea rejected Council legitimacy, asserted their right to nuclear weapons and deterrence and proclaimed it would soon conduct a new nuclear test.

In addition the North engaged in some strong saber-rattling aimed at South Korea.

READ: For South Koreans, a familiar tone from Pyongyang

Because some analysts believe this will be a uranium explosion, it is a game-changer for the region and poses new and unfavorable challenges to the Security Council. A successful uranium test indicates that Pyongyang has advanced centrifuge technologies and related support systems. It means that North Korea, if left unchecked, can both produce and export such material, raising new concerns that Pyongyang and Iran cooperate in such developments.

Politically the test will reveal that the new regime of Kim Jong-Un exceeds the defiance to U.N. dictates of his predecessors in pursuing his nation's nuclear goals. Neither the prospect of stronger sanctions, nor the growing discontent of Russia and China with his behavior, appears to deter North Korea's young leader.

OPINION: Rescind North Korea's license to provoke

These dilemmas confront the permanent five members of the Council with a harsh reality check regarding their unity of action and what message to convey to the north via what particular sanctions. If the Council follows the logic of resolution 2087, it will impose more extensive and punishing sanctions than ever before. Such sanctions will blacklist companies, government agencies and individuals long known for their role in illicit technology procurement and sanctions evasion. They will expand financial sanctions into areas of banking that would require substantial transnational enforcement to bite, and they may call upon countries in the region to inspect almost all North Korean trade. The economic squeeze and further isolation of the DPRK will increase substantially.

READ: Why sticks don't work with North Korea

These sanctions would require China to play an enforcement role against North Korean economic actors it has hitherto resisted. Seizing prohibited goods that pass through Dalian harbor and other trans-shipment points, as well as shutting down various border activities, would also fall to China. These extensive sanctions as punishment operate from the assumption that at some point the north will forego its nuclear program in order to survive as an authoritarian state.

But there may be an alternative to the punishment approach that could bring Beijing on board with effective Council action. China might well accept specialized trade sanctions aimed to degrade the DPRK's ability to sustain the nuclear program for lack of material and due to prohibitive costs of sanctions busting, as a way of conveying to Pyongyang that it must return to the negotiating table.

The logic of extensive new product-focused sanctions is that DPRK can make -- or jerry-rig -- only a small fraction of the advanced technologies and specialty materials that sustain an ongoing uranium enrichment program. To choke off these materials -- and the illicit means of financing them -- provides the Council with a possibility to make it technically impossible for DPRK to have a functioning uranium-based bomb program.

Precise lists of dozens of the materials used in centrifuge operation that should be sanctioned are already recorded for the Council in the reports of their Panel of Experts for the DPRK. Lists of related materials have also been developed by the Nuclear Supplies Group. To date the permanent five have sanctioned only a very few of the materials on either list. The Council also needs member states to strengthen export, customs and financial controls on dual-use items that are "below grade" of those newly sanctioned items. This will stifle the North's ability to upgrade or jerry-rig these hitherto unsanctioned items as a way of maintaining their program.

READ: Five things to know about North Korea's planned nuclear test

Also critical to the success of this choking of supplies would be stricter controls of the illicit financing that supports such trade. Putting strong enforcement behind the 2087 resolution's concern about DPRK cash flows, especially through its embassies, is also in order.

Another, somewhat unprecedented, sanctions option would be a Council-issued travel ban on North Korea placed on all scientists, engineers and others with specialized expertise in centrifuge technologies and uranium enrichment.

Political agreement on these measures will not be easy to attain among the permanent five nations of the Security Council. But a product-focused sanctions approach -- especially leveraged to aim for more direct diplomatic engagement with the DPRK while denying them material to grow their illicit programs -- has the best chance of gaining Council consensus.

The opinions expressed in this commentary are solely those of George A. Lopez.

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Post office to end Saturday mail service

After losing $16 billion last year, CBS News has learned the postal service wants to halt Saturday delivery of first class mail starting this summer. CBS News' Nancy Cordes reports.

Tribune staff and wire report

8:19 a.m. CST, February 6, 2013

WASHINGTON -- The Postal Service is planning to drop Saturday delivery of first-class mail by August, a congressional source said on Wednesday.

The cash-strapped mail agency will still deliver packages, said the source, who is familiar with the matter but not authorized to speak on the record.

USPS spokesman Mark Saunders could not confirm the change, but said the agency would issue a news release on Wednesday.

The move is part of the mail carrier's larger effort to aggressively to cut costs amid rising use of email and the Internet as well as looming payments for future retiree's health benefits. USPS lost almost $16 billion last year.

The 237-year-old institution has already run into its legal borrowing limit and defaulted twice on required payments to the federal government.

Reuters contributed

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Tunisia protests after government critic shot dead

TUNIS (Reuters) - A Tunisian opposition politician was shot dead on Wednesday, sending protesters onto the streets of cities nationwide two years after the uprisings that swept Tunisia's president from power and inflamed the Arab world.

The headquarters of the moderate Islamist Ennahda party, which rules in a fractious coalition with secularists, was set ablaze after Chokri Belaid, an outspoken critic of the government, was gunned down outside his home in the capital.

Prime Minister Hamadi Jebali, who said the identity of the attacker was not known, condemned Belaid's killing as a political assassination and a strike against the "Arab Spring" revolution. Ennahda denied any involvement by the part.

Despite calls for calm from the president, 8,000 protesters, massed outside the Interior Ministry, calling for the fall of the government, and thousands more demonstrated in cities including Mahdia, Sousse, Monastir and Sidi Bouzid, the cradle of the revolution, where police fired teargas and warning shots.

"This is a black day in the history of modern Tunisia ... Today we say to the Islamists, 'get out' ... enough is enough," said Souad, a 40-year-old teacher outside the Interior Ministry in Tunis. "Tunisia will sink in the blood if you stay in power."

The small North African state was the first Arab country to oust its leader and hold free elections as uprisings spread around the region, leading to the ousting of the rulers of Egypt, Yemen and Libya and to the civil war in Syria.

But like in Egypt, many who campaigned for freedom from repression under autocratic rulers and better prospects for their future now feel their revolutions have been hijacked by Islamists they accuse of clamping down on personal freedoms, with no sign of new jobs or improvements in infrastructure.

HARDSHIP

Since the uprising, the government has faced a string of protests over economic hardship and Tunisia's future path, with many complaining hardline Salafists were taking over the revolution in the former French colony dominated previously by a secular elite under the dictatorship of Zine al-Abidine Ben Ali.

Last year, Salafist groups prevented several concerts and plays from taking place in Tunisian cities, saying they violated Islamic principles, worrying the secular-minded among the 11 million Tunisians, who fear freedom of expression is in danger.

Declining trade with the crisis-hit euro zone has also left Tunisians struggling to achieve the better living standards many had hoped for following Ben Ali's departure. Any further signs of unrest could scare off tourists vital to an industry only just recovering from the revolution.

"More than 4,000 are protesting now, burning tires and throwing stones at the police," Mehdi Horchani, a Sidi Bouzid resident, told Reuters. "There is great anger."

Jobless graduate Mohamed Bouazizi set himself on fire in December 2010 in the city, 300 km (180 miles) southwest of Tunis, after police confiscated his unlicensed fruit cart, triggering the "Jasmine Revolution" that forced Ben Ali to flee to Saudi Arabia less than a month later, on January 14, 2011.

President Moncef Marzouki, who last month warned the tension between secularists and Islamists might lead to "civil war", canceled a visit to Egypt scheduled for Thursday and cut short a trip to France, where he addressed the European Parliament.

"We will continue to fight the enemies of the revolution," the secularist leader told European Union lawmakers in Strasbourg.

Belaid, who died in hospital, was a leading member of the opposition Popular Front party. A lawyer and human rights activist, he had been a constant critic of the government, accusing it of being a puppet of the rulers in the small but wealthy Gulf state of Qatar, which Tunisia denies.

"Chokri Belaid was killed today by four bullets to the head and chest," Ziad Lakhader, a leader of the Popular Front, told Reuters. "Doctors told us that he has died. This is a sad day for Tunisia."

DENIES INVOLVEMENT

Ennahda Prime Minister Jebali said the killers wanted to "silence his voice".

"The murder of Belaid is a political assassination and the assassination of the Tunisian revolution," he said.

Party President Rached Ghannouchi denied any involvement in the killing. Belaid said earlier this week that dozens of people close to the government attacked a meeting of his party.

"Is it possible that the ruling party could carry out this assassination when it would disrupt investment and tourism?" Ghannouchi told Reuters.

He blamed those seeking to derail Tunisia's democratic transition after a 2011 uprising. "Tunisia today is in the biggest political stalemate since the revolution. We should be quiet and not fall into a spiral of violence. We need unity more than ever," Ghannouchi said.

He accused secular opponents of stirring up sentiment against his party following Belaid's death. "The result is burning and attacking the headquarters of our party in many areas," he said.

French President Francois Hollande condemned the shooting, saying he was concerned by the rise of violence in Paris's former dominion, where the government says al Qaeda-linked militants linked to those in neighboring countries have been accumulating weapons with the aim of creating an Islamic state.

"This murder deprives Tunisia of one of its most courageous and free voices," Hollande's office said in a statement.

Riccardo Fabiani, Eurasia analyst on Tunisia, described it as a "major failure for Tunisian politics".

"The question is now what is Ennahda going to do and what are its allies going to do?" he said. "They could be forced to withdraw from the government which would lead to a major crisis in the transition."

Marzouki warned last month that the conflict between Islamists and secularists could lead to civil war and called for a national dialogue that included all political groupings.

Ennahda won 42 percent of seats in a parliamentary election in 2011 and formed a government in coalition with two secular parties, the Congress for the Republic, to which President Marzouki belongs, and Ettakatol.

Marzouki's party threatened on Sunday to withdraw from the government unless it dropped two Islamist ministers.

(Additional reporting by John Irish in Paris; Writing by Alison Williams; Editing by Alastair Macdonald)

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Wall Street rebounds from steep decline

NEW YORK (Reuters) - U.S. stocks rose on Tuesday, rebounding from their worst daily loss since November in the prior session.

The Dow Jones industrial average <.dji> was up 84.21 points, or 0.61 percent, at 13,964.29. The Standard & Poor's 500 Index <.spx> was up 9.12 points, or 0.61 percent, at 1,504.83. The Nasdaq Composite Index <.ixic> was up 10.31 points, or 0.33 percent, at 3,141.48.

(Reporting By Angela Moon; Editing by Kenneth Barry)

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