Israel, Gaza fighting rages on as Egypt seeks truce

GAZA/JERUSALEM (Reuters) - Israeli warplanes struck Gaza militants for a fifth straight day on Sunday and its military prepared for a possible ground invasion, though Egypt saw "some indications" of a truce ahead.

Forty-seven Palestinians, about half of them civilians, including 12 children, have been killed in Israel's raids, Palestinian officials said. More than 500 rockets fired from Gaza have hit Israel, killing three people and injuring dozens.

Israel unleashed its massive air campaign on Wednesday, killing a leading militant of the Hamas Islamist group that controls Gaza and rejects Israel's existence, with the declared goal of deterring gunmen in the coastal enclave from launching rockets that have plagued its southern communities for years.

The Jewish state has since launched more than 950 air strikes on the coastal Palestinian territory, targeting weaponry and flattening militant homes and headquarters.

The raids continued past midnight on Sunday. One targeted a building in Gaza City housing the offices of local Arab media, wounding three journalists from al Quds television, a station Israel sees as pro-Hamas, witnesses said.

Two other predawn attacks on houses in the Jebalya refugee camp killed one child and wounded 12 other people, medical officials said.

These attacks followed a defiant statement by Hamas military spokesman Abu Ubaida, who told a televised news conference.

"This round of confrontation will not be the last against the Zionist enemy and it is only the beginning."

The masked gunman dressed in military fatigues insisted that despite Israel's blows Hamas "is still strong enough to destroy the enemy."

An Israeli attack on Saturday destroyed the house of a Hamas commander near the Egyptian border.

Casualties there were averted however, because Israel had fired non-exploding missiles at the building beforehand from a drone, which the militant's family understood as a warning to flee, and thus their lives were spared, witnesses said.

Israeli aircraft also bombed Hamas government buildings in Gaza on Saturday, including the offices of Prime Minister Ismail Haniyeh and a police headquarters.

Among those killed in air strikes on Gaza on Saturday were at least four suspected militants riding motorcycles, and several civilians including a 30-year-old woman.

ISRAELI SCHOOLS SHUT

Israel said it would keep schools in its southern region shut on Sunday as a precaution to avoid casualties from rocket strikes reaching as far as Tel Aviv and Jerusalem in the past few days.

Israel's "Iron Dome" missile interceptor system destroyed in mid-air a rocket fired by Gaza militants at Tel Aviv on Saturday, where volleyball games on the beach front came to an abrupt halt as air-raid sirens sounded.

Hamas' armed wing claimed responsibility for the attack on Tel Aviv, the third against the city since Wednesday. It said it had fired an Iranian-designed Fajr-5 at the coastal metropolis, some 70 km (43 miles) north of Gaza.

In the Israeli Mediterranean port of Ashdod, a rocket ripped into several balconies. Police said five people were hurt.

Israel's operation has drawn Western support for what U.S. and European leaders have called Israel's right to self-defense, but there was also a growing number of calls from world leaders to seek an end to the violence.

British Prime Minister David Cameron "expressed concern over the risk of the conflict escalating further and the danger of further civilian casualties on both sides," in a conversation with Israeli Prime Minister Benjamin Netanyahu, a spokesperson for Cameron said.

The United Kingdom was "putting pressure on both sides to de-escalate," the spokesman said, adding that Cameron had urged Netanyahu "to do everything possible to bring the conflict to an end."

Ben Rhodes, a deputy national security adviser to President Barack Obama, said the United States would like to see the conflict resolved through "de-escalation" and diplomacy, but also believes Israel has a right to self-defense.

Egyptian President Mohamed Mursi said in Cairo as his security deputies sought to broker a truce with Hamas leaders, that "there are some indications that there is a possibility of a ceasefire soon, but we do not yet have firm guarantees."

Egypt has mediated previous ceasefire deals between Israel and Hamas, the latest of which unraveled with recent violence.

A Palestinian official told Reuters the truce discussions would continue in Cairo on Sunday, saying "there is hope," but it was too early to say whether the efforts would succeed.

In Jerusalem, an Israeli official declined to comment on the negotiations. Military commanders said Israel was prepared to fight on to achieve a goal of halting rocket fire from Gaza, which has plagued Israeli towns since late 2000, when failed peace talks led to the outbreak of a Palestinian uprising.

Diplomats at the United Nations said Secretary-General Ban Ki-moon is expected to visit Israel and Egypt in the coming week to push for an end to the fighting.

POSSIBLE GROUND OFFENSIVE

Israel, though, with tanks and artillery positioned along the frontier, signaled it was still weighing a possible ground offensive into Gaza.

Israeli cabinet ministers decided on Friday to more than double the current reserve troop quota set for the Gaza offensive to 75,000 and around 16,000 reservists have already been called up.

Asked by reporters whether a ground operation was possible, Major-General Tal Russo, commander of the Israeli forces on the Gaza frontier, said: "Definitely."

"We have a plan. ... It will take time. We need to have patience. It won't be a day or two," he added.

Another senior commander briefing reporters on condition of anonymity said Israel had scored "good achievements" in striking at nearly 1,000 targets, with the aim of ridding Hamas of firepower imported from Libya, Sudan and Iran.

A possible move into the densely populated Gaza Strip and the risk of major casualties it brings would be a significant gamble for Netanyahu, favorite to win a January national election.

Hamas fighters are no match for the Israeli military. The last Gaza war, involving a three-week Israeli air blitz and ground invasion over the New Year's period of 2008-09, killed over 1,400 Palestinians, mostly civilians. Thirteen Israelis died in the conflict.

But the Gaza conflagration has stirred the pot of a Middle East already boiling from two years of Arab revolution and a civil war in Syria that threatens to spread beyond its borders.

One major change has been the election of an Islamist government in Cairo that is allied with Hamas, potentially narrowing Israel's maneuvering room in confronting the Palestinian group. Israel and Egypt made peace in 1979.

(Writing by Allyn Fisher-Ilan; Editing by Todd Eastham)

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Sarah Michelle Gellar Names Son Rocky

Mom & Babies
Celebrity Baby Blog

11/17/2012 at 07:00 PM ET

Claire Greenway/Getty

Update: The couple have named their son Rocky James Prinze, a source close to the family confirms to PEOPLE.

Originally posted Sept. 24: Hello, little Prinze.

Sarah Michelle Gellar ”had a baby boy last week in Los Angeles,” her rep tells PEOPLE.

She and husband Freddie Prinze, Jr. “are thrilled to announce” the news, the rep confirms to Access Hollywood, adding that ”mother and baby are doing great.”

The newborn joins the couple’s daughter Charlotte Grace at home.

Their 3-year-old, who was spotted out with a still-pregnant Gellar last Tuesday, “is very excited to be a big sister,” the rep adds.

“They are thrilled that Charlotte [has] a little brother,” a source close to the couple told PEOPLE in July.

“They love their little girl more than anything in the world and know that love will only multiply.”

Gellar, 35, and Prinze, 36, were married in September 2002.

– Sarah Michaud with reporting by Charlotte Triggs

Read More..

EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

Read More..

Wall Street Week Ahead: Going off "cliff" with a bungee cord

NEW YORK (Reuters) - The 1987 crash. The Y2K bug. The debt ceiling debacle of 2011.

All these events, in the end, turned out to be buying opportunities for stocks. So will the "fiscal cliff," some investors say as they watch favorite stocks tumble during the political give-and-take happening in Washington.

The first round of talks aimed at avoiding the "fiscal cliff" caused a temporary rise in equities on Friday, signaling Wall Street's recent declines could be a buying opportunity. The gains were small and sentiment remains weak, but it suggests hope for market bulls.

Though shares ended moderately higher on Friday, it was not enough to offset losses for the week. The S&P was down 1.5 percent, while both the Dow and the Nasdaq fell 1.8 percent.

The S&P 500 is down more than 5 percent in the seven sessions that followed President Barack Obama's re-election. Uncertainty arose as attention turned to Washington's task of dealing with mandated tax hikes and spending cuts that could take the U.S. economy back into recession.

Some see the market's move as an overreaction to hyperbolic headlines about policy gridlock in Washington, believing stocks may start to rebound in what should be a quiet few days ahead of the Thanksgiving holiday next Thursday.

"It just doesn't seem to make any sense that you suddenly wake up the day after the election and realize we've got a fiscal cliff," said Krishna Kumar, partner at New York hedge fund Goose Hollow Alpha Advisors.

Not long ago the S&P was on target for its second-best year in the last 10, riding a 17 percent advance in 2012. That's been halved to about 8 percent, which isn't bad but disappointing compared with just a month ago.

Investors have been selling the year's winners. Apple is down 25 percent from its peak above $700. General Electric is down 14 percent; Google has lost 16 percent. Overall, the stocks that make up the top 10 percent of performers in the month prior to Election Day have been the worst performers since, according to Bespoke Investment Group of Harrison, New York.

"I think it's a good opportunity to be long stocks at these levels," said Kumar.

Hikes on capital gains and dividend taxes are on the line, and Obama has dug in his heels on what he sees as a mandate to make the tax code more progressive.

He seems to have the upper hand in dealings with Congress because Republican lawmakers don't want to see tax rates increase, which is what will happen if no solution is found by the beginning of 2013. Republicans don't want to take the blame for driving the economy over the cliff.

The current crisis is similar to last year's fight to raise the U.S. debt ceiling, which led to the downgrade of the United States' top credit rating in early August 2011.

During the dealings, the S&P 500 lost 18.8 percent between its peak in July 2011 and its bottom in August. As the market slid, the political standoff badly hurt investors' confidence in Washington, setting off a spike in volatility.

In the end a deal was announced that raised the ceiling and put off longer-term fiscal decisions until January 1, 2013, setting the stage for today's "fiscal cliff" crisis.

After staying flat through September 2011, the S&P 500 jumped 31 percent between its October low and the end of March.

BUY THE DIP?

Gridlock in Washington and all that could possibly go wrong with the economy if a deal is not reached have grabbed the headlines, but the negotiations leave room for stock market gains. Congressional leaders said Friday they will work through the Thanksgiving holiday recess to find a solution.

"The debate over how to solve (the fiscal cliff) may be more productive than is commonly recognized," said Brad Lipsig, senior portfolio manager at UBS Financial Services in New York.

"The U.S. is facing a major debt overhang, and serious steps toward addressing it might ultimately be viewed as a positive for future growth," he said. "The market may recognize this and, after a time of hand wringing, recover from the concerns with a renewed sense of optimism."

The recent selling took the S&P 500's relative strength index - a technical measure of internal strength - below 30 this week, indicating the benchmark is oversold and due for a rebound.

The RSI in four of the 10 S&P sectors - utilities, telecoms, consumer staples and technology - is below 30 and the highest RSI reading, for the consumer discretionary sector, is below 40, suggesting a bounce is in store.

"What I want to do is what we did during the decline following the budget negotiations in the summer of 2011: The lower the stock market goes, the more I want to own stock," said Brian Reynolds, chief market strategist at New York-based Rosenblatt Securities.

"If we go off the cliff it will be with a bungee cord attached," he said.

KEEP CALM AND HEDGE

Volatility is expected to rise through the end of November and to spike in late December if no agreement on the fiscal cliff is reached in Congress. Alongside comes opportunity for those with high risk tolerance.

"Recently, volatility has increased in the market overall. You can't really pick it up in the VIX yet, but I think as we get through November, I think you're likely to see the VIX be at a relatively higher level," said Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston.

In 2011, the VIX averaged 19.2 in July and 35 in August. So far this month the average is 17.8 and it is expected to spike if negotiations on the cliff drag into late next month.

"Looking at the range of possibilities, I would say any of them would be better than sitting here waiting. I would even put going off the fiscal cliff in that category," said Jill Cuniff, president of Seattle-based Edge Asset Management Inc, which manages about $20 billion.

"But we don't believe Congress will let that happen; there's going to be some middle ground here."

(Reporting by Rodrigo Campos and Jonathan Spincer, additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)

Read More..

Israel authorizes more reservists after rockets target cities

GAZA/JERUSALEM (Reuters) - Israel's cabinet authorized the mobilization of up to 75,000 reservists late on Friday, preparing the ground for a possible Gaza invasion after Palestinians fired a rocket toward Jerusalem for the first time in decades.

Tel Aviv, Israel's commercial centre, also came under rocket attack for the second straight day, in defiance of an Israeli air offensive that began on Wednesday with the declared aim of deterring Hamas from launching cross-border attacks that have plagued southern Israel for years.

Hamas, the Islamist group that runs the Gaza Strip, claimed responsibility for firing at Jerusalem and Tel Aviv. Israel said the rocket launched toward Jerusalem landed in the occupied West Bank, and the one fired at Tel Aviv did not hit the city. There were no reports of casualties.

The siren that sounded in Jerusalem stunned many Israelis. The city, holy to Jews, Muslims and Christians, was last struck by a Palestinian rocket in 1970, and it was not a target when Saddam Hussein's Iraq fired missiles at Israel in the 1991 Gulf War.

Prime Minister Benjamin Netanyahu held a four-hour strategy session with a clutch of senior ministers in Tel Aviv on widening the military campaign, while other cabinet members were polled by telephone on raising the mobilization level.

Political sources said they decided to more than double the current reserve troop quota set for the Gaza offensive to 75,000. The move did not necessarily mean all would be called into service.

Hours earlier, Egypt's prime minister, denouncing what he described as Israeli aggression, visited Gaza and said Cairo was prepared to mediate a truce.

Officials in Gaza said 29 Palestinians - 13 militants and 16 civilians, among them eight children and a pregnant woman - had been killed in the enclave since Israel began its air strikes. Three Israeli civilians were killed by a rocket on Thursday.

The Israeli military said 97 rockets fired from Gaza hit Israel on Friday and 99 more were intercepted by its Iron Dome anti-missile system. Dozens of Israeli bombing raids rocked the enclave, and one flattened the Gaza Interior Ministry building.

In a further sign Netanyahu might be clearing the way for a ground operation, Israel's armed forces announced that a highway leading to the territory and two roads bordering the enclave of 1.7 million Palestinians would be off-limits to civilian traffic.

Tanks and self-propelled guns were seen near the border area on Friday, and the military said it had already called 16,000 reservists to active duty.

Netanyahu is favorite to win a January national election, but further rocket strikes against Tel Aviv, a free-wheeling city Israelis equate with New York, and Jerusalem, which Israel regards as its capital, could be political poison for the conservative leader.

"The Israel Defence Forces will continue to hit Hamas hard and are prepared to broaden the action inside Gaza," Netanyahu said before the rocket attacks on the two cities.

Asked about Israel massing forces for a possible Gaza invasion, Hamas spokesman Sami Abu Zuhri said: "The Israelis should be aware of the grave results of such a raid, and they should bring their body bags."

SOLIDARITY VISIT

A solidarity visit to Gaza by Egyptian Prime Minister Hisham Kandil, whose Islamist government is allied with Hamas but also party to a 1979 peace treaty with Israel, had appeared to open a tiny window to emergency peace diplomacy.

Kandil said: "Egypt will spare no effort ... to stop the aggression and to achieve a truce."

But a three-hour truce that Israel declared for the duration of Kandil's visit never took hold.

Israel Radio's military affairs correspondent said the army's Homefront Command had told municipal officials to make civil defence preparations for the possibility that fighting could drag on for seven weeks. An Israeli military spokeswoman declined to comment on the report.

The Gaza conflagration has stoked the flames of a Middle East already ablaze with two years of Arab revolution and a civil war in Syria that threatens to leap across borders.

It is the biggest test yet for Egypt's new President Mohamed Mursi, a veteran Islamist politician from the Muslim Brotherhood who was elected this year after last year's protests ousted military autocrat Hosni Mubarak.

Egypt's Muslim Brotherhood are spiritual mentors of Hamas, yet Mursi has also pledged to respect Cairo's 1979 peace treaty with Israel, seen in the West as the cornerstone of regional security. Egypt and Israel both receive billions of dollars in U.S. military aid to underwrite their treaty.

Mursi has vocally denounced the Israeli military action while promoting Egypt as a mediator, a mission that his prime minister's visit was intended to further.

A Palestinian official close to Egypt's mediators told Reuters Kandil's visit "was the beginning of a process to explore the possibility of reaching a truce. It is early to speak of any details or of how things will evolve".

Hamas fighters are no match for the Israeli military. The last Gaza war, involving a three-week long Israeli air blitz and ground invasion over the New Year period of 2008-2009, killed more than 1,400 Palestinians, mostly civilians. Thirteen Israelis died.

Tunisia's foreign minister was due to visit Gaza on Saturday "to provide all political support for Gaza" the spokesman for the Tunisian president, Moncef Marzouki, said in a statement.

The United States asked countries that have contact with Hamas to urge the Islamist movement to stop its rocket attacks.

Hamas refuses to recognize Israel's right to exist. By contrast, Palestinian President Mahmoud Abbas, who rules in the nearby West Bank, does recognize Israel, but peace talks between the two sides have been frozen since 2010.

Abbas's supporters say they will push ahead with a plan to have Palestine declared an "observer state" rather than a mere "entity" at the United Nations later this month.

(Additional reporting by Maayan Lubell, Jeffrey Heller and Crispian Balmer in Jerusalem; Writing by Jeffrey Heller; Editing by Giles Elgood and Will Waterman)

Read More..

TV, movie features on new Wii U delayed until Dec.

NEW YORK (AP) — Some of the entertainment features on Nintendo’s new Wii U won’t be available when the game machine goes on sale Sunday.

Nintendo didn’t give a reason for the delay in Friday’s news release. In a statement, the company said it wanted the service “to be the best possible experience for all consumers.” Nintendo said it was still working to “make it available as soon as possible.”

The new service, Nintendo TVii, promises to take into account all the ways users watch movies, TV shows and sports.

If you like the TV show “Modern Family,” for example, it will present you with a list of the show’s episodes gathered from available sources, whether that’s Hulu, Netflix or traditional cable TV.

The Wii U is the first major game console to launch in six years. The free TVii — pronounced “tee-veeee” — features were supposed to be available at the time of Wii U’s launch in the U.S. and Canada. Nintendo said the TVii service will now be activated sometime in December.

With TVii the GamePad controller that comes with Wii U is supposed to work as a fancy remote control. Viewers will be able to browse shows to watch or send suggestions to other Wii users. The service also captures scenes from live TV and displays them on the controller’s touch-screen display.

Nintendo also said the ability to watch Amazon, Hulu and Netflix content on the Wii U won’t be available for a few more weeks. These are separate apps, though the content services will also be available through the Wii U app.

Gaming News Headlines – Yahoo! News

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Khloé Kardashian and Lamar Odom Will Be Apart for Thanksgiving

TV Watch

The X Factor

By Andrea Billups

11/16/2012 at 08:00 PM EST

Lamar Odom and Khloé Kardashian

Denise Truscello/Wireimage

As most Americans sit down for Thanksgiving dinner, he'll be on the court with the Los Angeles Clippers in New York and she'll be on the stage in Los Angeles.

But even if Khloé Kardashian, 28, and her basketball star husband Lamar Odom, 33, won't be together this year for the family holiday, they remain connected and supportive as both continue their busy careers.

"Honestly, I'm fine with it, because I'm obsessed with my husband – in a healthy way – but he's on the road. He has a game in Brooklyn, so I don't feel guilty, like, 'I'm not going to be able to cook for him!' " Kardashian told PEOPLE from the set of The X Factor on Thursday.

"So, he'll be on the road. He'll be working anyway. So, I feel better about that, and my sister Kim will be here. And I think my mom will come here that night, too. Thanksgiving at The X Factor!"

Wherever her husband may be, Kardashian says Odom lovingly takes time to watch her show, even if it's a replay on YouTube, where he often makes fun of her voice. Odom, she adds, has also given her other advice, chiding her for being a bit ... overexposed.

"The only tip he gave me was don't show your nipples anymore," Kardashian joked. He said, "Please do not have your [breasts] out." I said, 'Oh, good tip.' "

As she gets emotionally invested in the show's talented contestants and in watching their gut-wrenching departures, Kardashian says she is also trying to improve her own skills co-hosting the show with Mario Lopez. Her famous siblings have been supportive thus far, offering their own tips.

"I'm still learning. I'm still just trying to get better, and better every week," she said of her new role. "I like constructive criticism, but still it's only a one or two-hour show, and there's still so many people. I just don't have time to just talk, and be myself yet."

"And right now, it's so technical. I feel like, when more people go, there's going to be more time to fill. And I feel like that's where I can kind of do my thing."

• Reporting by Patrick Gomez

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EU drug regulator OKs Novartis' meningitis B shot

LONDON (AP) — Europe's top drug regulator has recommended approval for the first vaccine against meningitis B, made by Novartis AG.

There are five types of bacterial meningitis. While vaccines exist to protect against the other four, none has previously been licensed for type B meningitis. In Europe, type B is the most common, causing 3,000 to 5,000 cases every year.

Meningitis mainly affects infants and children. It kills about 8 percent of patients and leaves others with lifelong consequences such as brain damage.

In a statement on Friday, Andrin Oswald of Novartis said he is "proud of the major advance" the company has made in developing its vaccine Bexsero. It is aimed at children over two months of age, and Novartis is hoping countries will include the shot among the routine ones for childhood diseases such as measles.

Novartis said the immunization has had side effects such as fever and redness at the injection site.

Recommendations from the European Medicines Agency are usually adopted by the European Commission. Novartis also is seeking to test the vaccine in the U.S.

Read More..

Wall Street Week Ahead: Going off "cliff" with a bungee cord

NEW YORK (Reuters) - The 1987 crash. The Y2K bug. The debt ceiling debacle of 2011.

All these events, in the end, turned out to be buying opportunities for stocks. So will the "fiscal cliff," some investors say as they watch favorite stocks tumble during the political give-and-take happening in Washington.

The first round of talks aimed at avoiding the "fiscal cliff" caused a temporary rise in equities on Friday, signaling Wall Street's recent declines could be a buying opportunity. The gains were small and sentiment remains weak, but it suggests hope for market bulls.

Though shares ended moderately higher on Friday, it was not enough to offset losses for the week. The S&P was down 1.5 percent, while both the Dow and the Nasdaq fell 1.8 percent.

The S&P 500 is down more than 5 percent in the seven sessions that followed President Barack Obama's re-election. Uncertainty arose as attention turned to Washington's task of dealing with mandated tax hikes and spending cuts that could take the U.S. economy back into recession.

Some see the market's move as an overreaction to hyperbolic headlines about policy gridlock in Washington, believing stocks may start to rebound in what should be a quiet few days ahead of the Thanksgiving holiday next Thursday.

"It just doesn't seem to make any sense that you suddenly wake up the day after the election and realize we've got a fiscal cliff," said Krishna Kumar, partner at New York hedge fund Goose Hollow Alpha Advisors.

Not long ago the S&P was on target for its second-best year in the last 10, riding a 17 percent advance in 2012. That's been halved to about 8 percent, which isn't bad but disappointing compared with just a month ago.

Investors have been selling the year's winners. Apple is down 25 percent from its peak above $700. General Electric is down 14 percent; Google has lost 16 percent. Overall, the stocks that make up the top 10 percent of performers in the month prior to Election Day have been the worst performers since, according to Bespoke Investment Group of Harrison, New York.

"I think it's a good opportunity to be long stocks at these levels," said Kumar.

Hikes on capital gains and dividend taxes are on the line, and Obama has dug in his heels on what he sees as a mandate to make the tax code more progressive.

He seems to have the upper hand in dealings with Congress because Republican lawmakers don't want to see tax rates increase, which is what will happen if no solution is found by the beginning of 2013. Republicans don't want to take the blame for driving the economy over the cliff.

The current crisis is similar to last year's fight to raise the U.S. debt ceiling, which led to the downgrade of the United States' top credit rating in early August 2011.

During the dealings, the S&P 500 lost 18.8 percent between its peak in July 2011 and its bottom in August. As the market slid, the political standoff badly hurt investors' confidence in Washington, setting off a spike in volatility.

In the end a deal was announced that raised the ceiling and put off longer-term fiscal decisions until January 1, 2013, setting the stage for today's "fiscal cliff" crisis.

After staying flat through September 2011, the S&P 500 jumped 31 percent between its October low and the end of March.

BUY THE DIP?

Gridlock in Washington and all that could possibly go wrong with the economy if a deal is not reached have grabbed the headlines, but the negotiations leave room for stock market gains. Congressional leaders said Friday they will work through the Thanksgiving holiday recess to find a solution.

"The debate over how to solve (the fiscal cliff) may be more productive than is commonly recognized," said Brad Lipsig, senior portfolio manager at UBS Financial Services in New York.

"The U.S. is facing a major debt overhang, and serious steps toward addressing it might ultimately be viewed as a positive for future growth," he said. "The market may recognize this and, after a time of hand wringing, recover from the concerns with a renewed sense of optimism."

The recent selling took the S&P 500's relative strength index - a technical measure of internal strength - below 30 this week, indicating the benchmark is oversold and due for a rebound.

The RSI in four of the 10 S&P sectors - utilities, telecoms, consumer staples and technology - is below 30 and the highest RSI reading, for the consumer discretionary sector, is below 40, suggesting a bounce is in store.

"What I want to do is what we did during the decline following the budget negotiations in the summer of 2011: The lower the stock market goes, the more I want to own stock," said Brian Reynolds, chief market strategist at New York-based Rosenblatt Securities.

"If we go off the cliff it will be with a bungee cord attached," he said.

KEEP CALM AND HEDGE

Volatility is expected to rise through the end of November and to spike in late December if no agreement on the fiscal cliff is reached in Congress. Alongside comes opportunity for those with high risk tolerance.

"Recently, volatility has increased in the market overall. You can't really pick it up in the VIX yet, but I think as we get through November, I think you're likely to see the VIX be at a relatively higher level," said Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston.

In 2011, the VIX averaged 19.2 in July and 35 in August. So far this month the average is 17.8 and it is expected to spike if negotiations on the cliff drag into late next month.

"Looking at the range of possibilities, I would say any of them would be better than sitting here waiting. I would even put going off the fiscal cliff in that category," said Jill Cuniff, president of Seattle-based Edge Asset Management Inc, which manages about $20 billion.

"But we don't believe Congress will let that happen; there's going to be some middle ground here."

(Reporting by Rodrigo Campos and Jonathan Spincer, additional reporting by Caroline Valetkevitch; Editing by Kenneth Barry)

Read More..

Egypt PM to visit Gaza in support of Hamas against Israel

GAZA (Reuters) - Egypt's prime minister prepared to visit the Gaza Strip on Friday in an unprecedented display of solidarity with Hamas militants embroiled in a new escalation of conflict with Israel that risks spiraling into all-out war.

Two rockets from Gaza crashed near Tel Aviv in the first such attack on Israel's commercial capital in 20 years. One fell into the Mediterranean Sea and the other in an uninhabited part of one of the Tel Aviv suburbs south of the city.

Two days of Israeli air strikes have killed 19 Palestinians, including seven militants and 12 civilians, among them six children and a pregnant woman. A Hamas rocket killed three Israelis in the town of Kiryat Malachi on Thursday morning.

The latest upsurge in the long-running conflict came on Wednesday when Israel killed Hamas' military mastermind, Ahmed Al-Jaabari, in a precision air strike on his car. Israel then began shelling the coastal enclave from land, air and sea.

Israel says its offensive responded to increasing missile salvoes from Gaza. Its bombing has not yet reached the saturation level seen before it last invaded Gaza in 2008, but Israeli officials have said a ground assault remains possible.

The Gaza conflagration has stoked the flames of a Middle East ablaze with two years of Arab popular revolution and a civil war in Syria that threatens to spread further afield.

Israeli warplanes bombed targets in and around Gaza City, rattling tall buildings. In a hint of escalation, the spokesman for Israel's military said it had received the green light to call in up to 30,000 reserve troops.

Egypt's new Islamist President, Mohamed Mursi, viewed by Hamas as a protector, led a chorus of denunciation of the Israeli strikes by allies of the Palestinians.

Mursi's prime minister, Hisham Kandil, is to visit Gaza on Friday with other Egyptian officials in a show of support for the enclave, an Egyptian cabinet official said. Israel promised the delegation would come to no harm.

An Egyptian government source, speaking on condition of anonymity, said officials accompanying Kandil would explore the possibility of brokering a ceasefire.

Mursi faces domestic pressure to act tough. But Egypt gets $1.3 billion a year in U.S. military aid and looks to Washington for help with its ailing economy, constraining Mursi despite his need to show Egyptians that his policies differ from those of his U.S.-backed predecessor Hosni Mubarak.

TEL AVIV TARGETED

Air raid sirens sent residents running for shelter in Tel Aviv, a Mediterranean city that has not been hit by a rocket since the 1991 Gulf War, when it was targeted by Saddam Hussein's Iraq.

The Tel Aviv metropolitan area is home to more than 3 million people, more than 40 percent of Israel's population. "This escalation will exact a price that the other side will have to pay," Barak said in a television broadcast shortly after the strike.

But an Israeli cabinet statement on Wednesday spoke only of "improving" national security - acknowledgement that the Jewish state has no illusions about crushing the militants once and for all.

Speaking at the same time in Gaza, Hamas leader Ismail Haniyeh urged Egypt to do more to help the Palestinians.

"We call upon the brothers in Egypt to take the measures that will deter this enemy," the Hamas prime minister said.

The resurgent conflict will be the biggest test yet of Mursi's commitment to Egypt's 1979 peace treaty with Israel, which the West views as the bedrock of Middle East peace.

Cairo recalled its ambassador from Israel on Wednesday. Israel's ambassador left Cairo on what was called a routine home visit; Israel said its embassy would remain open.

The Muslim Brotherhood, which brought Mursi to power in an election after the downfall of Hosni Mubarak, has called for a "Day of Rage" in Arab capitals on Friday. The Brotherhood is seen as the spiritual mentor of Hamas.

The Israeli army said 300 targets were hit in Gaza, including more than 130 militant rocket launchers. It said more than 270 rockets had struck Israel since the start of the operation, with its Iron Dome interceptor system shooting down more than 130 rockets bound for residential areas.

Expecting days or more of fighting and almost inevitable civilian casualties, Israeli warplanes dropped leaflets in Gaza advising residents to stay away from Hamas and other militants.

DIPLOMATIC EFFORTS

United Nations diplomats said Secretary General Ban Ki-moon would head to Israel and Egypt next week to try to mediate a ceasefire, although they gave no further details.

The United States has asked countries that have contact with Hamas to urge the Islamist movement to stop its recent rocket attacks from Gaza, a White House adviser said.

"We've ... urged those that have a degree of influence with Hamas, such as Turkey and Egypt and some of our European partners, to use that influence to urge Hamas to de-escalate," Ben Rhodes, deputy national security adviser, said in a conference call with reporters.

French President Francois Hollande began talks with Israeli Prime Minister Benjamin Netanyahu and other world leaders in an attempt to avert an escalation of violence in the Gaza Strip, Prime Minister Jean-Francois Ayrault said.

British Prime Minister David Cameron spoke to Netanyahu too, saying Hamas bore the principal responsibility for the crisis.

Israel's sworn enemy Iran, which supports and arms Hamas, condemned the Israeli offensive as "organized terrorism."

Lebanon's Iranian-backed Shi'ite Muslim militia Hezbollah, which has its own rockets aimed at the Jewish state, denounced strikes on Gaza as "criminal aggression," but held its fire.

The Organisation of Islamic Cooperation condemned Israel's action.

(Additional reporting by Louis Charbonneau at the United Nations, Writing by Ori Lewis in Jerusalem, Editing by Mark Heinrich and Todd Eastham)

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