At Least 30 Die in Egyptian Riots After Soccer Verdict

Tara Todras-Whitehill for The New York Times

A protester threw a tear-gas canister back toward police officers in Cairo on Saturday. More Photos »

CAIRO — The Egyptian government appeared to have lost control of the major city of Port Said on Saturday after a court sentenced 21 fans to death for their role in a deadly soccer riot, and their supporters attacked the prison where they were being held, as well as the police and court buildings.

By evening, fighting in the streets of Port Said had left at least 30 people dead, mostly from gunfire, and injured more than 300. Fearful residents stayed in their homes. Doctors in the city said the local hospital was overloaded with casualties and pleaded for help. Water had run out in some places. Rioters attacked the Port Said power plant, and for a time closed off the main roads to the city.

A spokesman for the Interior Ministry acknowledged that its security forces were unable to control the violence and urged political leaders to try to broker a peace agreement. President Mohamed Morsi met with the National Defense Council, which includes the nation’s top military leaders, and the information minister announced that the council was considering imposing a curfew and state of emergency.

By 8 p.m., a spokesman for the Egyptian military said its troops had moved in and secured vital facilities, including the prison, the Mediterranean port and the Suez Canal. But in telephone interviews, residents said the streets remained lawless. “I’m worried for my sister and mother,” said Ahmed Zangir, 21. “I could run or do something, but it is not safe for them to get out.”

Mr. Zangir added: “Thugs are abusing the opportunity. They are everywhere.”

The violence that engulfed Port Said may be the sharpest challenge yet to Egypt’s new Islamist rulers as they try to re-establish public order after the two years of turmoil that have followed the end of Hosni Mubarak’s brutal autocracy.

The uprising in support of the soccer fans sentenced to death coincided with the third day of clashes between protesters and the police in Cairo and in other cities around the country, which were set off by the second anniversary of the revolt against Mr. Mubarak. Those battles were more isolated, typically confined to clashes around symbols of government power, like the Interior Ministry headquarters in Cairo or the headquarters of the provincial government in Suez.

In Suez on Friday, two police officers and seven protesters died in those clashes, state media reported.

The anniversary battles were fueled by a combination of frustration with the meager rewards of the revolution so far and hostility toward the new Islamist leaders. But the escalating chaos in Port Said arising from the soccer riot verdict posed a far greater challenge to those leaders and their promises to enforce the rule of law.

It was unclear how the fledgling government might rein in the mob without either a brutal crackdown or a capitulation to its demands. And either alternative could further inflame the streets in Cairo and around Egypt.

Illustrating the dilemma, a few hours after the defense council had raised the possibility of a curfew, Yasser Ali, a spokesman for the president, declared that there was no intention to impose one.

“The solution isn’t a security solution,” Gen. Osama Ismail, a spokesman for the Interior Ministry, said in a television interview. “We urge the political and patriotic leaders and forces to intervene to calm the situation.”

The case that set off the riot grew out of a deadly brawl last February between rival groups of hard-core fans of soccer teams from Cairo and Port Said at a match in Port Said, which has a population of about 600,000. The hard-core fans, called Ultras, are known for their appetite for violence against rival teams or the police. Some had smuggled knives and other weapons into the stadium, security officials said at the time.

Seventy-four people were killed and over 1,000 injured in the soccer riot. Many died after being trampled under the stampeding crowds or falling from stadium balconies, according to forensic testimony later reported in the state media.

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Everything You Need to Know About Kim Dotcom’s Mega

Click here to view the gallery: Hands On With Mega

Mega — the long-anticipated file sharing and cloud storage site from Kim Dotcom — is now open to the public.

[More from Mashable: Google Glasses Spotted and Two Other Stories You Need to Know]

Thanks to its association with the now-defunct Megaupload — and the legal issues facing its founder Kim Dotcom — the amount of press, user interest and hype surrounding Mega is greater than any file hosting/cloud storage launch in recent memory.

According to Dotcom, more than 1 million users signed up for Mega in the first 24 hours. On Twitter, the larger-than-life entrepreneur has continued to share usage stats and traffic graphs that compare Mega with perennial cloud favorite, Dropbox.

[More from Mashable: 9 Fresh YouTube Shows You’ll Love]

If you’re curious about the inner workings of Mega, how it works and how it handles security, we’ve got you covered.

The Phoenix of Megaupload

Mega is the spiritual successor to Kim Dotcom’s last business, the insanely popular file-hosting service Megaupload. Last year, the U.S. Department of Justice shut down Megaupload and pursued criminal charges against Dotcom. Dotcom, a New Zealand citizen, is actively fighting U.S. extradition orders.

Megaupload was targeted by the DoJ because of its role in illegally distributing copyright material — including digital copies of movies, TV shows, books, music and software.

Rather than try to start a new service eschewing the potential for copyright material to be uploaded and shared, Dotcom is positioning Mega as a service that cares about and protects its user’s privacy. In fact, Mega’s tagline is “the privacy company.”

How It Works

On the surface, Mega is a bare-bones cloud storage host. After signing up for accounts, users can upload files and folders of all types to the service. Those files can then be shared with others.

The free plan gives users 50GB of file storage. There are no hard limits on file size, meaning users can use Mega as a way to back up photos, documents and other data. Obviously, this means users can use Mega as a way to store media content — video files, music, DVD images — as well.

For now, Mega is optimized to work on desktop web browsers. Mega strongly encourages users to use Google Chrome. And while Mega has big plans for developers and client-side apps, for now, the only way to access files is via the web browser.

Files can be uploaded to the service using drag and drop or a file-upload menu. Users can create folders in the file manager.

Uploads and downloads take place in parallel. If you upload a large number of files at once, each file uploads one at a time. In the future, Mega says users will be able to change the upload order. If you need to upload or download multiple files at once, simply open a new Mega tab in your browser and select that file.

You can upgrade to a higher-tiered storage plan from within your account. Mega doesn’t sell these plans itself; instead it has resellers who sell vouchers for a service. A 500GB storage plan with 1TB of enhanced bandwidth is 9.99 euros a month or 99 euros a year (a little over $ 110 U.S. dollars). That’s cheaper than most of its competitors.

The Importance of Passwords

It’s very important to remember the password you select when setting up your Mega account. The password is a big part of how Mega encrypts data on both ends.

During the sign-up process, Mega uses your password to create a 2,048-bit RSA key. This is the key that tells the system you are who you say you are. If you forget your password, you’re not going to be able to get into your account.

Right now, Mega doesn’t even have a password reset or recovery feature. In the future, Mega says it will have a reset mechanism but it will only allow users access to files or folders they have file keys for (more on file keys below). Users won’t be able to access other files until or unless they remember their password.

Because your Mega password is also your master encryption key, it’s important that users choose a secure password. We recommend using a password manager and printing a copy of the password to store in a safe place.

Understanding File Security

Mega is focused on end-to-end encryption. This means that files are encrypted both on upload and on download. With most traditional file hosts or cloud storage lockers, a public link to a file also includes a file path. With Dropbox, for example, the public or shared link includes the file name.

With Mega, things are a bit different. While users can share specific files to other Mega users or via email, the URL to a file doesn’t contain a file name; instead, a cryptographic key is appended to the URL. Without this key, you can’t access the file. Once decrypted by the server, a user has the option to download the linked file.

Mega’s promise, in other words, is that users control who has access to their files and accounts and no one else.

For important files or folders, users might want to make a note of the file key and keep it in a safe place — if they are worried about getting locked out of their account.

How Safe Are Your Files

Since Mega is touting itself as “the privacy company,” it’s important to look at how the company stores files and content.

The end-to-end encryption scheme is only part of how Mega secures data. Still, some are already criticizing the service, noting that it’s not as secure as it says it is. An article for Forbes cites two professionals who have problems with Mega’s security.

Matthew Green, a cryptography professor at John Hopkins University, is particularly critical of the way Mega uses JavaScript to verify its encryption method telling Forbes that “it makes no sense.”

Mega has responded to Green’s claims on its own blog, noting that its scheme “basically enables us to host the extremely integrity-sensitive static content on a large number of geographically diverse servers without worrying about security.”

Meanwhile, at Ars Technia Lee Hutchinson raises concerns about how Mega comes up with its crypto key at sign-up, as well as how the company handles deduplication, or how it eliminates duplicate copies of data.

Again, Mega has taken to its blog to attempt to clarify its policies and the way it handles data.

While Mega’s crypto system certainly doesn’t seem any less secure than any other file locker, we do agree with critics who note that the system might be more about giving Mega culpability against claims that it knows infringing content is on its servers, rather than about protecting that data itself.

The service is still in beta and much of its code is available via open source, so security purists might want to watch how Mega’s system evolves before trusting it with important, sensitive data.

Will Mega Stick Around?

While security experts can quibble and argue over the way Mega uses cryptography and how it stores data on its array of servers, the bigger issue, for us, is long-term survival.

While I would argue that most users who actively used Megaupload were not using it as a traditional cloud service, the fact remains that when the service was shut down, user files went with it.

Already anti-piracy groups are campaigning to shut down payment processors to Mega’s resellers. One of the reasons Mega isn’t taking payments itself and is instead using resellers is to prevent those groups from shutting down payment processors or trying to seize funds.

This is worrisome because in addition to outside capital, Mega needs professional accounts to keep its site working.

It’s too early to say if Mega will be around for the long haul or not, but our advice is not to use Mega as your only file storage solution. Keep backups of crucial files on disk or other cloud-based services.

What do you think of Mega? Let us know in the comments.

This story originally published on Mashable here.

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Joe Manganiello Is Dating Model Bridget Peters

By Monica Rizzo

01/25/2013 at 03:45 PM EST

Joe Manganiello and Bridget Peters

Seth Browarnik/Startraks

Joe Manganiello has a new lady love.

The True Blood hunk, 36, has been spending time with the beautiful brunette model Bridget Peters, PEOPLE has learned.

Manganiello and Peters met at a Las Vegas boxing match last year where Peters was a ring girl, according to a source. The two have been together ever since, with Peters accompanying Manganiello to Atlanta, Sweden and Miami.

Last month in Las Vegas, the duo caught the Zarkana Cirque du Soleil show at Aria with Manganiello's brother and father, and the Manny Pacquiao vs. Juan Manuel Marquez boxing match at the MGM Grand.

While promoting the film Magic Mike last July, Manganiello told PEOPLE his ideal woman is not a size two.

"I'm a big guy. All too often in Hollywood actresses are super skinny," Manganiello said. "As a man my primal instincts don't kick in when they are that skinny. It's almost unhealthy. I like curves."

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Penalty could keep smokers out of health overhaul

WASHINGTON (AP) — Millions of smokers could be priced out of health insurance because of tobacco penalties in President Barack Obama's health care law, according to experts who are just now teasing out the potential impact of a little-noted provision in the massive legislation.

The Affordable Care Act — "Obamacare" to its detractors — allows health insurers to charge smokers buying individual policies up to 50 percent higher premiums starting next Jan. 1.

For a 55-year-old smoker, the penalty could reach nearly $4,250 a year. A 60-year-old could wind up paying nearly $5,100 on top of premiums.

Younger smokers could be charged lower penalties under rules proposed last fall by the Obama administration. But older smokers could face a heavy hit on their household budgets at a time in life when smoking-related illnesses tend to emerge.

Workers covered on the job would be able to avoid tobacco penalties by joining smoking cessation programs, because employer plans operate under different rules. But experts say that option is not guaranteed to smokers trying to purchase coverage individually.

Nearly one of every five U.S. adults smokes. That share is higher among lower-income people, who also are more likely to work in jobs that don't come with health insurance and would therefore depend on the new federal health care law. Smoking increases the risk of developing heart disease, lung problems and cancer, contributing to nearly 450,000 deaths a year.

Insurers won't be allowed to charge more under the overhaul for people who are overweight, or have a health condition like a bad back or a heart that skips beats — but they can charge more if a person smokes.

Starting next Jan. 1, the federal health care law will make it possible for people who can't get coverage now to buy private policies, providing tax credits to keep the premiums affordable. Although the law prohibits insurance companies from turning away the sick, the penalties for smokers could have the same effect in many cases, keeping out potentially costly patients.

"We don't want to create barriers for people to get health care coverage," said California state Assemblyman Richard Pan, who is working on a law in his state that would limit insurers' ability to charge smokers more. The federal law allows states to limit or change the smoking penalty.

"We want people who are smoking to get smoking cessation treatment," added Pan, a pediatrician who represents the Sacramento area.

Obama administration officials declined to be interviewed for this article, but a former consumer protection regulator for the government is raising questions.

"If you are an insurer and there is a group of smokers you don't want in your pool, the ones you really don't want are the ones who have been smoking for 20 or 30 years," said Karen Pollitz, an expert on individual health insurance markets with the nonpartisan Kaiser Family Foundation. "You would have the flexibility to discourage them."

Several provisions in the federal health care law work together to leave older smokers with a bleak set of financial options, said Pollitz, formerly deputy director of the Office of Consumer Support in the federal Health and Human Services Department.

First, the law allows insurers to charge older adults up to three times as much as their youngest customers.

Second, the law allows insurers to levy the full 50 percent penalty on older smokers while charging less to younger ones.

And finally, government tax credits that will be available to help pay premiums cannot be used to offset the cost of penalties for smokers.

Here's how the math would work:

Take a hypothetical 60-year-old smoker making $35,000 a year. Estimated premiums for coverage in the new private health insurance markets under Obama's law would total $10,172. That person would be eligible for a tax credit that brings the cost down to $3,325.

But the smoking penalty could add $5,086 to the cost. And since federal tax credits can't be used to offset the penalty, the smoker's total cost for health insurance would be $8,411, or 24 percent of income. That's considered unaffordable under the federal law. The numbers were estimated using the online Kaiser Health Reform Subsidy Calculator.

"The effect of the smoking (penalty) allowed under the law would be that lower-income smokers could not afford health insurance," said Richard Curtis, president of the Institute for Health Policy Solutions, a nonpartisan research group that called attention to the issue with a study about the potential impact in California.

In today's world, insurers can simply turn down a smoker. Under Obama's overhaul, would they actually charge the full 50 percent? After all, workplace anti-smoking programs that use penalties usually charge far less, maybe $75 or $100 a month.

Robert Laszewski, a consultant who previously worked in the insurance industry, says there's a good reason to charge the maximum.

"If you don't charge the 50 percent, your competitor is going to do it, and you are going to get a disproportionate share of the less-healthy older smokers," said Laszewski. "They are going to have to play defense."

___

Online:

Kaiser Health Reform Subsidy Calculator — http://healthreform.kff.org/subsidycalculator.aspx

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S&P 500 heads for longest winning streak in eight years

NEW YORK (Reuters) - Stocks rose on Friday, with the S&P 500 on track to close above 1,500 for the first time in more than five years on bullish data from Europe and strong earnings reports.

The benchmark was on track to extend its winning streak to eight days, the longest since a nine-day run in late 2004.

Data showed sales of new U.S. single-family homes fell in December but rose in 2012 to the highest level since 2009, a sign the troubled U.S. housing market has turned a corner.

"Economic data in the U.S. has been trending higher, albeit modestly. Things are incrementally better," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.

"The market was able to move forward despite deterioration in Apple and that's also a positive."

Apple shares dropped 1.2 percent to $444.99, and the iPhone maker was swapping places as the most valuable U.S. company with ExxonMobil Corp through the afternoon.

Adding to the bullish tone, German business morale improved for a third consecutive month in January to its highest in more than six months. In addition, European banks said they will repay the European Central Bank much more than expected of the loans the bank gave them during the crisis.

"Good news in credit markets helps set the stage for (more investment in) riskier assets," Krosby said.

Procter & Gamble shares rose 3.6 percent to $72.99 after the world's top household products maker's quarterly profit soared past expectations. The company also raised its sales and earnings outlook for the fiscal year.

The Dow Jones industrial average <.dji> rose 58.8 points or 0.43 percent, to 13,884.13, the S&P 500 <.spx> gained 7.85 points or 0.53 percent, to 1,502.67 and the Nasdaq Composite <.ixic> added 23.19 points or 0.74 percent, to 3,153.58.

The benchmark S&P 500 index is up more than 5 percent so far in January. The equity market's strong start this year has been attributed to solid corporate results, an agreement in Washington to extend the government's borrowing power, encouraging signs from the global economy and seasonal inflows into stocks.

Helping to lift the Nasdaq Composite, Starbucks , rose 4.5 percent to $57.01 after the coffee retailer reported stronger-than-expected sales in the United States and Asia.

Thomson Reuters data through Friday showed that of the 147 S&P 500 companies that have reported earnings, 68 percent exceeded expectations. Since 1994, 62 percent of companies have topped expectations, while the average over the past four quarters stands at 65 percent.

Halliburton Co shares jumped 5 percent to $39.69 after the world's second-largest oilfield services company reported higher-than-expected earnings and sales for the fourth quarter.

(Reporting by Rodrigo Campos; Editing by Kenneth Barry)

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Pentagon Reverses Its Censoring of Passages in Afghan War Book

WASHINGTON — In an illustration of the government’s changeable ideas of what should be secret, Pentagon censors have decided that nearly half of more than 400 passages deleted from an Afghan war memoir can be printed without damaging national security.

The decision last week by a Defense Department security office is the latest twist in the striking fate of the 2010 book, “Operation Dark Heart,” by Anthony Shaffer, a retired Army officer who described his work as an intelligence officer in Afghanistan. The Army initially cleared the book for publication, but then the Defense Intelligence Agency objected, asserting that the manuscript contained classified information.

So the Pentagon spent nearly $50,000 to buy and destroy the entire 10,000-copy first printing of the book, before allowing a second printing with 433 passages blacked out. Mr. Shaffer later filed a lawsuit challenging the deletions.

The new review by the Defense Department concluded that 198 of the supposed secrets were now “properly declassified” and could be printed after all.

In a further complication to the “Operation Dark Heart” case, a small number of review copies of the original uncensored edition had been distributed before the Pentagon bought the 10,000 copies. By examining the unexpurgated copies, it is possible to find out what security officials thought was dangerous, and what they now have decided is safe to print.

For instance, the name of Bagram Air Base, a hub of American operations in Afghanistan, was removed from the first edition, but the censors now say it can be restored. But a reference to the nickname of the National Security Agency, “the Fort” – a name well known for decades to neighbors of the agency at Fort Meade, Md. – remains classified.

Mr. Shaffer, who retired from the Army as a lieutenant colonel in 2011, said the restored passages may be used in a new Turkish-language edition of the book. But he noted that the Defense Department had decided that the official description of activities that won him a Bronze Star — in a document not initially marked as classified and already released at a public Congressional hearing — was now classified and could not be publicly discussed.

“They continue to trample on my First Amendment rights,” he said.

Steven Aftergood of the Federation of American Scientists, who published the new Defense Department letter on his blog Secrecy News on Thursday, said the government’s revision “illustrates the thoroughly subjective character of the classification system.”

“To inquire into the logic of the process is to go down a bottomless rabbit hole,” he said.

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Women in Combat Stoke Twitter Debate

The Pentagon’s decision to allow women in combat has elicited some strong and controversial words from opponents of the move.

First, Tucker Carlson. Last night, the Daily Caller publisher tweeted: “Feminism’s latest victory: the right to get your limbs blown off in war. Congratulations.”

This drew some swift criticism on Twitter, and a counterpoint from The Week’s Marc Ambinder, who noted that one woman who lost limbs in combat, Tammy Duckworth, is now serving as a Democrat in the House of Representatives.

Then, Politico reported that Allen West, the former GOP congressman and Army lieutenant colonel, tweeted this morning: “Women in combat billets? Another misconceived lib vision of fairness and equality.”

West is already getting trashed on Twitter by users who took offense. After the controversial remarks made by Newt Gingrich in the mid-1990s and Rick Santorum last year, it’s no surprise that the Pentagon’s decision is stirring debate.

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Puppy Bowl's Starting Lineup Revealed

People Pets

By Amy Jamieson

01/24/2013 at 03:45 PM EST

It's time to set your DVRs, people. Animal Planet has revealed Puppy Bowl IX's starting lineup, and it would be a crime to miss this much cuteness.

Thirty-five doe-eyed doggies are primed to strut their adorable assets on Feb. 3 at 3 p.m. ET/PT – and each is available for adoption. (Read: These cuties could cuddle next to you on the couch after the show is over.)

Not to be missed on this year's roster are Chestnut, a squeeze-worthy 9-week-old Labrador retriever/Australian shepherd mix available at the Bonnie Blue Rescue of Virginia, and – move over, Harry Styles – 12-week-old dachshund Harry from Rhode Island's Furever Dachshund Rescue is definitely breaking more hearts than you.

In a Puppy Bowl first, a lineup of hedgehogs will cheer on these pigskin-loving pups from the sidelines, and annual favorites like the water bowl cam, kiss cam and a stadium-hovering blimp piloted by hamsters are all returning. Also hitting the field for his sophomore season is The Ref, a.k.a. Dan Schachner, who is charged with keeping all these players in line.

Could Schachner's all-time career highlight be topped this year by this new team? "Receiving the honorary ref whistle and gold-plated pooper-scooper in a moving pre-game ceremony was uh-mazing last year," he tells Animal Planet. "I would be lying if I said my emotions didn't run high that day."

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US hit by new stomach bug spreading around globe

NEW YORK (AP) — A new strain of stomach bug sweeping the globe is taking over in the U.S., health officials say.

Since September, more than 140 outbreaks in the U.S. have been caused by the new Sydney strain of norovirus. It may not be unusually dangerous; some scientists don't think it is. But it is different, and many people might not be able to fight off its gut-wrenching effects.

Clearly, it's having an impact. The new strain is making people sick in Japan, Western Europe, and other parts of the world. It was first identified last year in Australia and called the Sydney strain.

In the U.S., it is now accounting for about 60 percent of norovirus outbreaks, according to report released Thursday by the Centers for Disease Control and Prevention.

Norovirus — once known as Norwalk virus — is highly contagious and often spreads in places like schools, cruise ships and nursing homes, especially during the winter. Last month, 220 people on the Queen Mary II were stricken during a Caribbean cruise.

Sometimes mistakenly called stomach flu, the virus causes bouts of vomiting and diarrhea for a few days.

Every two or three years, a new strain evolves — the last was in 2009. The Sydney strain's appearance has coincided with a spike in influenza, perhaps contributing to the perception that this is a particularly bad flu season in the U.S.

Ian Goodfellow, a prominent researcher at England's University of Cambridge, calls norovirus 'the Ferrari of viruses' for the speed at which it passes through a large group of people.

"It can sweep through an environment very, very quickly. You can be feeling quite fine one minute and within several hours suffer continuous vomiting and diarrhea," he said.

Health officials have grown better at detecting new strains and figuring out which one is the culprit. They now know that norovirus is also the most common cause of food poisoning in the U.S.

It's spread by infected food handlers who don't do a good job washing their hands after using the bathroom. But unlike salmonella and other foodborne illnesses, norovirus can also spread in the air, through droplets that fly when a sick person vomits.

"It's a headache" to try to control, said Dr. John Crane, a University of Buffalo infectious disease specialist who had to deal with a norovirus outbreak in a hospital ward a couple of years ago.

Each year, noroviruses cause an estimated 21 million illnesses and 800 deaths, the CDC says.

For those infected, there's really no medicine. They just have to ride it out for the day or two of severe symptoms, and guard against dehydration, experts said.

The illness even got the attention of comedian Stephen Colbert, who this week tweeted: "Remember, if you're in public and have the winter vomiting bug, be polite and vomit into your elbow."

____

Online:

CDC report: http://www.cdc.gov/mmwr

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Wall Street edges up in face of Apple decline

NEW YORK (Reuters) - The Dow and S&P 500 advanced on Thursday, with the benchmark S&P index on track for its first seven-day streak of gains in over six years as solid economic data managed to outweigh a steep decline in Apple shares.

Apple Inc dropped 10.4 percent to $460.69 after the technology giant missed Wall Street's revenue forecast for a third straight quarter as iPhone sales were poorer than expected, lending credence to recent concerns its days as the dominant player in consumer electronics may be on the wane.

The drop wiped out roughly $50 billion in Apple's market capitalization to $432 billion, leaving the company vulnerable to losing its status as the most valuable U.S. company to second place ExxonMobil Corp , at $417 billion.

A trio of economic reports helped buoy the market, with data showing a decline in weekly jobless claims and an increase in manufacturing, while a gauge of future economic activity climbed.

"The claims numbers are clearly a big surprise and were very good numbers - they imply we may have a good employment number for the month of January," said Hugh Johnson, chief investment officer of Hugh Johnson Advisors LLC in Albany, New York.

"You have Apple and technology on the one side and the rest of the market on the other side."

The gains marked the first time the S&P 500 had risen above 1,500 since December 12, 2007 and put the index on pace for its seventh straight advance, its longest streak since October 2006.

The advance for the S&P, and muted declines in the Nasdaq in spite of the decline in Apple, were viewed as a positive sign, as investors take encouragement from an improving global economy and move into stocks more closely tied to economic fortunes, such as industrials.

General Electric rose 0.5 percent to $22.06 and United Parcel Service gained 2.4 percent to $82.30. Of the 10 major S&P sectors, only technology <.splrct>, off 1.5 percent, was lower.

The Dow Jones industrial average <.dji> gained 58.82 points, or 0.43 percent, to 13,838.15. The Standard & Poor's 500 Index <.spx> added 1.78 points, or 0.12 percent, to 1,496.59. The Nasdaq Composite Index <.ixic> dropped 14.25 points, or 0.45 percent, to 3,139.42.

The domestic data meshed with those overseas showing growth in Chinese manufacturing accelerated to a two-year high this month and a buoyant Germany took the euro zone economy a step closer to recovery.

Apple's disappointing results drew a round of price-target cuts from brokerages. At least 14 brokerages, including Barclays Capital, Credit Suisse and Deutsche Bank, cut their price target on the stock by $142 on average. Morgan Stanley removed the stock from its 'best ideas' list.

In contrast to Apple, Netflix Inc surprised Wall Street Wednesday with a quarterly profit after the video subscription service added nearly 4 million customers in the U.S. and abroad. Shares surged 37.6 percent to $142.10, its biggest percentage jump ever.

Diversified U.S. manufacturer 3M Co reported a 3.9 percent rise in profit, meeting expectations, on solid growth in sales of its wide array of products, which range from Post-It notes to films used in television screens. The shares slipped 0.2 percent to $99.28.

Corporate earnings have helped drive the recent stock market rally. Thomson Reuters data through early Thursday showed that of the 133 S&P 500 companies that have reported earnings, 66.9 percent have exceeded expectations, above the 65 percent average over the past four quarters.

(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)

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