Square scandal highlights growing pains at tech start-ups


SAN FRANCISCO (Reuters) - When Square Chief Operating Officer Keith Rabois left his job last month, citing legal threats from a young colleague with whom he had a two-year relationship, he threw a spotlight on the risks associated with the freewheeling startup culture that many entrepreneurs cherish.


Startups often thrive on a lack of rules and boundaries. But experts say that as they make the transition from a handful of people in a room to sizeable businesses, the hazards of operating without manual - including lawsuits, reputational hits, and waning employee morale - grow exponentially.


Longtime employees sometimes chafe at the arrival of human resources professionals, codes of conduct and other policies that they fear will step on the company's culture. Yet entrepreneurs and start-up investors say they ultimately have little choice.


Take Facebook Inc, which displayed murals of naked women, some riding dogs, in the Palo Alto offices it leased as a small company in 2005. As proud as some of the early employees were of them — one was painted by the then-girlfriend of Facebook impresario and serial entrepreneur Sean Parker — they got painted over shortly after venture-capital firm Accel Partners invested in the company. Facebook had no immediate comment.


About a year into the life of online-ad tracking startup DoubleVerify, an employee gave a presentation about how advertising fraud takes place. Many in the room got a rude awakening when a slide popped up showing an example of an ad where it shouldn't be: next to a particularly raunchy image on a pornography site.


"That was the first time we realized, ‘We gotta get a little more institutionalized," recalls founder Oren Netzer. Today, the company has policies concerning naked images. The same presentation would use a less controversial example, or obscure anything racy.


Alcohol is another dicey topic. "We used to have these new employee hazing ceremonies," said Dheeraj Pandey, chief executive of virtualization company Nutanix, largely involving knocking back tequila shots with chili peppers. But once the company hit about 100 employees, some new hires pushed back and he started considering the potential for liability.


"It just faded away about four, five months ago," he said about the hazing. Potential concerns run the gamut from some employees feeling excluded if they don't drink to incidents that sometimes accompany drunken behavior.


At 250-person social-media management company Hootsuite, "I somewhat infamously have said I never wanted to work at a company with an HR department," says founder Ryan Holmes.


"That's coming back to bite me a little bit now."


MISSION STATEMENTS, HR FLUFF


A year ago, Holmes made his executive assistant the director of human resources. That type of promote-from-within strategy for HR is commonplace, startups say.


A few months into her role, the new HR director told Holmes the company needed a mission statement. "I said, ‘Oh my God, this is HR fluff,'" Holmes remembers. But shortly afterward, when he overheard new hires discussing beliefs he thought were out of step with Hootsuite's ethos — he says he cannot recall the details — he realized she was right.


But Holmes says he is resisting conforming on other levels. Hootsuite employees attend teambuilding trips, including a recent stay at a hot-springs resort. That is the type of event big companies cut out — Google Inc halted its famous all-employee trips in 2009 - often because of the potential for various kinds of legal liability and cost.


Holmes says he might have to rethink his overnight trips if the company ever goes public, but for now, he plans to keep going. "We think it's very valuable," he says.


At Nutanix, Pandey decided last summer's annual whitewater rafting trip on the Sacramento River would be the last. "We used to go through some rough rapids, and had a couple of close shaves," he said. "A couple of the guys aren't good swimmers."


Part of the philosophy is that young companies want to encourage a "think different" attitude, employees say.


"Start-ups by design want to differentiate themselves from the large companies like the HPs that have very thick employee handbooks," said Brian Samson, chief executive of HR for Startups, referring to computer company Hewlett Packard Co.


Start-ups often deal with the inevitable by aiming for a careful, light-footed approach to new policies.


"I've tried to make sure we don't talk about rules," says Evan Wittenberg, HR head at cloud-content firm Box. "The language around this really matters. These are guidelines."


Still, there are tensions as the company, which now employs around 700 and is considered a likely prospect for a 2013 initial public offering, grows. Cecilia Wong, people manager at Box, cites the daylong orientation process for new employees.


"I've had some managers ask, ‘Why's it a full day? On my first day, it was just an hour, then I could hit the ground running,'" she says. She believes the full day is important for explaining the company culture, business and logistics issues.


The consequences of neglecting HR policy and other big-company practices can be dire.


Rabois said he resigned from his post after an ex-boyfriend that he recommended for a job at Square threatened to sue for sexual harassment. A Square spokesman declined to say what kind of HR policies, if any, the company has in place, and he declined to comment on any issue related to the relationship that led to Rabois' resignation. Square had about 30 employees when Rabois joined and now has about 400.


Many large organizations - not just companies, but nonprofits and government agencies - have firm policies about intra-office romances, and often prohibit them if one party has any kind of supervisory authority over the other.


"You can be open to liability if the relationship goes sour, and you have a person in a position of power over the other person," said San Francisco employment attorney Therese Lawless. "Any actions of that person in power can be deemed to be retaliatory."


In addition, it can create a morale issue if other employees believe the more junior employee in an ongoing relationship is receiving favorable treatment, she said.


(Reporting By Sarah McBride; Editing by Jonathan Weber and Leslie Gevirtz)



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Snedeker on the rise with Pebble win


PEBBLE BEACH, Calif. (AP) — Everything about Brandt Snedeker moves at warp speed, including his rapid rise into golf's elite.


He talks so fast that he always seems to be a few words short of a complete sentence. He plays fast, giving his hips a quick swivel to set his position before pulling the trigger. Even his putts go into the hole quickly, most of them struck with purpose instead of hope.


But when he reached the 18th tee box at Pebble Beach, he had to wait for the fairway to clear before taking a victory stroll up one of the prettiest closing holes in golf.


And that was OK with him.


"There's not much better place to be on the planet with a three-shot lead on that tee box," Snedeker said Sunday. "It felt pretty special there."


Indeed, Snedeker is in a special place.


With his 10th consecutive round in the 60s, Snedeker finally had a trophy to show for his astounding start to the 2013 season. He knew the opening seven holes were critical, and he made an eagle and three birdies to build a quick lead. He realized a late birdie would give him a cushion, and he fired at the flag on the par-3 17th to 10 feet below the cup and holed the putt. He closed with a 7-under 65 for a two-shot win over Chris Kirk in the Pebble Beach National Pro-Am.


It was the fifth win of his career, and his fourth in the last 22 months. But it's the last six months that have really turned heads.


He captured the $10 million FedEx Cup prize with a win at the Tour Championship, where he held off the likes of Rory McIlroy, Tiger Woods and Luke Donald going into the final round. He played in his first Ryder Cup. He started this year with a third-place at Kapalua, and runner-up finishes in consecutive weeks to Woods and Phil Mickelson, both of whom had big leads going into the final round.


Go back to the start of the FedEx Cup playoffs last August and Snedeker now has six top 3s in his last nine starts. Since missing the cut at the PGA Championship, he has broken par in 33 out of 37 rounds. No wonder he now is No. 4 in the world, the best ranking of his career.


"Just hard to put into words, to have a stretch of golf like I had the last couple of months," Snedeker said. "Something you dream about. Something you think that you can do, but you don't really know until you actually put it together. And I have.


"I'm really enjoying this, and hopefully can parlay this into the best year of my career."


Snedeker set the tournament record at 19-under 267, one shot better than Mickelson (2007) and Mark O'Meara (1997), who each had a 20-under 268 when Poppy Hills (par 72) was part of the rotation. It has been replaced by Monterey Peninsula, which is a par 70.


Chris Kirk closed with a 66 to finish alone in second, though he was never closer than two shots of the lead on the back nine and finished with a birdie. Kirk finished on 269, a score that would have been good enough to win all but four times at Pebble Beach since this tournament began in 1937.


"We've had a lot of tournaments like that on tour this year where somebody has really just kind of blitzed the field," Kirk said. "I felt like I played well enough to win a golf tournament and came up a little bit short."


Snedeker could have said the same thing — except for Woods at Torrey Pines, and Mickelson going obscenely low to win the Phoenix Open.


He wasn't about to take a back seat to anyone at Pebble Beach.


Snedeker started the final round tied with James Hahn, a 31-year-old rookie from the Bay Area, with Kirk one shot behind. He set the tone early with a 4-iron into the par-5 second hole that was on the edge of the left green. It hit the collar and kicked slightly to the right, rolling toward the pin until it settled 4 feet behind the cup.


"Kind of lucky, but it was a good shot, and to end up where it did was a great way to start the day," he said.


Hahn hit his approach high and pure, and it nearly hit Snedeker's ball before stopping 6 feet away. Hahn missed. Snedeker made. It was like that over the front nine.


Snedeker started to pull away with a 3-wood that came off the edge of the green, ran by the cup and stopped 20 feet away for a two-putt birdie. Then, he holed a 15-foot birdie putt on the seventh and was on his way.


Most impressive about Snedeker this week was bouncing back from bogey. He made five bogeys for the entire week, and four times made birdie on the next hole. On Sunday, his lone mistake was knocking an 18-foot birdie off the green and three-putting for bogey at No. 9.


The answer, like everything else about him, was fast and furious.


He knocked in a 25-foot birdie putt on the 10th, and then holed from 15 feet for birdie on the 12th. Right when it looked as though he would make another bogey on the par-3 12th, he made par from just short of 10 feet.


There's a reason Snedeker led the PGA Tour in putting last year, though it's his driving that has vastly improved. Snedeker studied some statistics last year that showed his odds of hitting the green go way up when he starts in the fairway. And once he's on the green, he's tough to beat.


Hahn, who shot 70 and tied for third, was looking forward to learning something from his debut in the final group, and he saw Snedeker put on a clinic.


"I learned that he is a better guy than he is a golfer. The dude is world class," Hahn said. "He's obviously one of the best, if not the best golfer right now, and possibly for the last year. But how he conducts himself as a person on an off the golf course, that's also world class. He deserved to win today. ... I'm sure if you ask him, it was never a doubt that he was going to win the golf tournament."


Snedeker concurred.


"I definitely didn't want to do anything but win today," he said. "I was out there for one purpose and one purpose only, and I was extremely focused all day. I did a great job of staying patient and I did a great job of playing the golf course the way you're supposed to play it."


And the outcome was just what he expected. The way he has been playing, it shouldn't have been any surprise to anyone.


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What beats Grammy? Immortality













Legends beyond their own time


Legends beyond their own time


Legends beyond their own time


Legends beyond their own time


Legends beyond their own time


Legends beyond their own time








STORY HIGHLIGHTS


  • Bob Greene: Grammy nominated acts should remember the real prize comes later in life

  • He says at a hotel he ran into a group of singing stars from an earlier era, in town for a show

  • He says the world of post-fame touring less glamorous for acts, but meaningful

  • Greene: Acts grow old, but their hits never will and to fans, the songs are time-machine




Editor's note: CNN Contributor Bob Greene is a best-selling author whose 25 books include "When We Get to Surf City: A Journey Through America in Pursuit of Rock and Roll, Friendship, and Dreams"; "Late Edition: A Love Story"; and "Once Upon a Town: The Miracle of the North Platte Canteen."


(CNN) -- Memo to Carly Rae Jepsen, Frank Ocean, Hunter Hayes, Mumford & Sons, Miguel, the Alabama Shakes and all the other young singers and bands who are nominated for Sunday night's Grammy Awards:


Your real prize -- the most valuable and sustaining award of all -- may not become evident to you until 30 or so years have passed.


You will be much older.


But -- if you are lucky -- you will still get to be out on the road making music.



Bob Greene

Bob Greene



Many of Sunday's Grammy nominees are enjoying the first wave of big success. It is understandable if they take for granted the packed concert venues and eye-popping paychecks.


Those may go away -- the newness of fame, the sold-out houses, the big money.


But the joy of being allowed to do what they do will go on.


I've been doing some work while staying at a small hotel off a highway in southwestern Florida. One winter day I was reading out on the pool deck, and there were some other people sitting around talking.


They weren't young, by anyone's definition. They did not seem like conventional businessmen or businesswomen on the road, or like retirees. There was a sense of nascent energy and contented anticipation in their bearing, of something good waiting for them straight ahead. A look completely devoid of grimness or fretfulness, an afternoon look that said the best part of the day was still to come.


I would almost have bet what line of work they were in. I'd seen that look before, many times.


I could hear them talking.


Yep.


The Tokens ("The Lion Sleeps Tonight," a No. 1 hit in 1961).




Little Peggy March ("I Will Follow Him," a No. 1 hit in 1963).


Little Anthony and the Imperials ("Tears on My Pillow," a top 10 hit in 1958).


Major singing stars from an earlier era of popular music, in town for a multi-act show that evening.


It is the one sales job worth yearning for -- carrying that battered sample case of memorable music around the country, to unpack in front of a different appreciative audience every night.


It's quite a world. I was fortunate enough to learn its ins and outs during the 15 deliriously unlikely years I spent touring the United States singing backup with Jan and Dean ("Surf City," a No. 1 hit in 1963) and all the other great performers with whom we shared stages and dressing rooms and backstage buffets:


Chuck Berry, Martha and the Vandellas, Jerry Lee Lewis, Little Richard, the Everly Brothers, James Brown, Lesley Gore, Freddy "Boom Boom" Cannon, the Kingsmen, the Drifters, Fabian, the Coasters, Little Eva, the Ventures, Sam the Sham. ...


Jukebox names whose fame was once as fresh and electric as that now being savored by Sunday's young Grammy nominees.


Decades after that fame is new, the road may not be quite as glamorous, the crowds may not be quite as large. The hours of killing time before riding over to the hall, the putrid vending-machine meals on the run, the way-too-early-in-the-morning vans to the airport -- the dreary parts all become more than worth it when, for an hour or so, the singers can once again personally deliver a bit of happiness to the audiences who still adore their music.


Greene: Super Bowl ad revives iconic voice


As the years go by, the whole thing may grow complicated -- band members come and go, they fight and feud, some quit, some die. There are times when it seems you can't tell the players without a scorecard -- the Tokens at the highway hotel were, technically and contractually, Jay Siegel's Tokens (you don't want to know the details). One of their singers (not Jay Siegel -- Jay Traynor) was once Jay of Jay and the Americans, a group that itself is still out on the road in a different configuration with a different Jay (you don't want to know).


But overriding all of this is a splendid truism:


Sometimes, if you have one big hit, it can take care of you for the rest of your life. It can be your life.


Sunday's young Grammy nominees may not imagine, 30 years down the line, still being on tour. But they -- the fortunate ones -- will come to learn something:


They will grow old, but their hits never will -- once people first fall in love with those songs, the songs will mean something powerful and evocative to them for the rest of their lives.


And as long as there are fairground grandstands on summer nights, as long as there are small-town ballparks with stages where the pitcher's mound should be, the singers will get to keep delivering the goods.


That is the hopeful news waiting, off in the distance, for those who will win Grammys Sunday, and for those who won't be chosen.


On the morning after that pool-deck encounter in Florida I headed out for a walk, and in the parking lot of the hotel I saw one of the Tokens loading his stage clothes into his car.


His license plate read:


SHE CRYD


I said to him:


"You sing lead on 'She Cried,' right?"


"Every night," he said, and drove off toward the next show.


The next show.


That's the prize.


That's the trophy, right there.


Follow @CNNOpinion on Twitter.


Join us at Facebook/CNNOpinion.


The opinions expressed in this commentary are solely those of Bob Greene.






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Obama coming to Chicago to 'talk about the gun violence'









President Barack Obama will visit Chicago on Friday, when he will discuss gun violence as he focuses on his economic message from Tuesday's State of the Union address, according to the White House.


Obama will "talk about the gun violence that has tragically affected too many families in communities across Chicago and across the country," a White House official said in a statement.


The president's visit answers calls from Chicago anti-violence activists that Obama talk about the recent spate of gun violence in the city, several of the activists said.





"This is an important issue," said Cathy Cohen, founder of the Black Youth Project, which attracted about 45,000 signatures by Sunday night in an online petition that urges Obama to speak up. "We think of this as a victory for all of us."


The group posted the petition on change.org shortly after Hadiya Pendleton, 15, was shot to death last month at a South Side park. The King College Prep student was slain about a week after performing with her school band at Obama's inaugural festivities.


Since Hadiya was shot about a mile from the president's Kenwood neighborhood home Jan. 29, during the deadliest January for Chicago since 2002, pastors, parents and activists have demanded that more be done about the city's violence.


First lady Michelle Obama attended Hadiya's funeral Saturday. Hadiya's mother, Cleopatra Cowley-Pendleton, will also attend the president's State of the Union speech on Tuesday, family spokeswoman Shatira Wilks said late Sunday.


Hadiya's godmother, LaKeisha Stewart, said she hasn't heard whether the president will spend time with the Pendletons during his trip to Chicago.


Stewart said she's happy about Obama's plans. "Any awareness that can be brought to this issue that can prevent any family from ever feeling the pain that we as a family have felt … is awesome," she said. "This city is in pain right now."


Nathaniel Pendleton, Hadiya's father, said his family didn't know much about the president's Chicago trip, but "if he decided to speak with us, we'll be more than happy."


The Rev. Jesse Jackson said the president's remarks in Chicago will play a different role than Michelle Obama's attendance at Hadiya's funeral. The first lady didn't speak publicly about the events surrounding the teenager's death.


"Her being there is very important since it was her neighborhood," Jackson said. "I think the president's coming is important because she did not deal with the politics. … She dealt with the calming concern for a broken-hearted family," he said.


Jackson made a public appeal this month for the president to speak to the bloodshed in Chicago.


Because of the upcoming visit, parents of children who have been shot to death in the city will finally feel heard by Obama, said Annette Nance-Holt, who lost her son Blair Holt in 2007 after he was shot on a crowded CTA bus.


"This sends a message to the parents here that their kids are important too," Holt said. "It may not have been a big shooting with an assault rifle. But to see (Obama) come and hopefully rally some support here means a lot."


The White House said the president's visits to Asheville, N.C., Atlanta and Chicago this week will also press issues that he will raise in his State of the Union speech Tuesday.


"The president will travel to Chicago for an event amplifying some of the policy proposals included in the State of the Union that focus on strengthening the economy for the middle class and the Americans striving to get there," a White House official said in a statement.


Clergy on Sunday praised Obama's decision to speak in Chicago, arguing his speech could bring greater attention to the killings plaguing communities here.


"Hopefully and prayerfully, his coming will make a real impact," said the Rev. Kenneth Giles of Second Mount Olive Missionary Baptist Church in the South Austin neighborhood. "Now that the nation is focused on (gun violence), maybe they will hear his voice and hear what he has to say."


The Rev. Michael Pfleger, senior pastor of the South Side's St. Sabina Catholic Church, said he's grateful the president is "zooming in" on the issue.





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Gunbattle rocks Gao after rebels surprise French, Malians


GAO, Mali (Reuters) - Islamist insurgents launched a surprise raid in the heart of the Malian town of Gao on Sunday, battling French and local troops in a blow to efforts to secure Mali's recaptured north.


Local residents hid in their homes or crouched behind walls as the crackle of gunfire from running street battles resounded through the sandy streets and mud-brick houses of the ancient Niger River town, retaken from Islamist rebels last month by a French-led offensive.


French helicopters clattered overhead and fired on al Qaeda-allied rebels armed with AK-47s and rocket-propelled grenades who had infiltrated the central market area and holed up in a police station, Malian and French officers said.


The fighting inside Gao was certain to raise fears that pockets of determined Islamists who have escaped the lightning four-week-old French intervention in Mali will strike back with guerrilla attacks and suicide bombings.


After driving the bulk of the insurgents from major northern towns such as Timbuktu and Gao, French forces are trying to search out their bases in the remote and rugged Adrar des Ifoghas mountains, far up in the northeast.


But with Mali's weak army unable to secure recaptured zones, and the deployment of a larger African security force slowed by delays and kit shortages, vast areas to the rear of the French forward lines now look vulnerable to guerrilla activity.


"They infiltrated the town via the river. We think there were about 10 of them. They were identified by the population and they went into the police station," said General Bernard Barrera, commander of French ground operations in Mali.


He told reporters in Gao that French helicopters had intervened to help Malian troops pinned down by the rebels, who threw grenades from rooftops.


Malian gendarme Colonel Saliou Maiga told Reuters the insurgents intended to carry out suicide attacks in the town.


SUICIDE BOMBERS


No casualty toll was immediately available. But a Reuters reporter in Gao saw one body crumpled over a motorcycle. Malian soldiers said some of the raiders may have come on motorbikes.


The gunfire in Gao erupted hours after French and Malian forces reinforced a checkpoint on the northern outskirts that had been attacked for the second time in two days by a suicide bomber.


Abdoul Abdoulaye Sidibe, a Malian parliamentarian from Gao, said the rebel infiltrators were from the MUJWA group that had held the town until French forces liberated it late last month.


MUJWA is a splinter faction of al Qaeda's North African wing AQIM which, in loose alliance with the home-grown Malian Islamist group Ansar Dine, held Mali's main northern urban areas for 10 months until the French offensive drove them out.


Late on Saturday, an army checkpoint in Gao's northern outskirts came under attack by a group of Islamist rebels who fired from a road and bridge that lead north through the desert scrub by the Niger River to Bourem, 80 km (50 miles) away.


"Our soldiers came under heavy gunfire from jihadists from the bridge ... At the same time, another one flanked round and jumped over the wall. He was able to set off his suicide belt," Malian Captain Sidiki Diarra told reporters.


The bomber died and one Malian soldier was lightly wounded, he added. In Friday's motorbike suicide bomber attack, a Malian soldier was also injured.


Diarra described Saturday's bomber as a bearded Arab.


Since Gao and the UNESCO World Heritage city of Timbuktu were retaken last month, several Malian soldiers have been killed in landmine explosions on a main road leading north.


French and Malian officers say pockets of rebels are still in the bush and desert between major towns and pose a threat of hit-and-run guerrilla raids and bombings.


"We are in a dangerous zone... we can't be everywhere," a French officer told reporters, asking not to be named.


One local resident reported seeing a group of 10 armed Islamist fighters at Batel, just 10 km (6 miles) from Gao.


OPERATIONS IN NORTHEAST


The French, who have around 4,000 troops in Mali, are now focusing their offensive operations several hundred kilometers (miles) north of Gao in a hunt for the Islamist insurgents.


On Friday, French special forces paratroopers seized the airstrip and town of Tessalit, near the Algerian border.


From here, the French, aided by around 1,000 Chadian troops in the northeast Kidal region, are expected to conduct combat patrols into the Adrar des Ifoghas mountains.


The remaining Islamists are believed to have hideouts and supply depots in a rugged, sun-blasted range of rocky gullies and caves, and are also thought to be holding at least seven French hostages previously seized in the Sahel.


The U.S. and European governments back the French-led operation as a defense against Islamist jihadists threatening wider attacks, but rule out sending their own combat troops.


To accompany the military offensive, France and its allies are urging Mali authorities to open a national reconciliation dialogue that addresses the pro-autonomy grievances of northern communities like the Tuaregs, and to hold democratic elections.


Interim President Dioncounda Traore, appointed after a military coup last year that plunged the West African state into chaos and led to the Islamist occupation of the north, has said he intends to hold elections by July 31.


But he faces splits within the divided Malian army, where rival units are still at loggerheads.


(Additional reporting by Tiemoko Diallo and Adama Diarra in Bamako; Writing by Joe Bavier and Pascal Fletcher; Editing by Kevin Liffey)



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Stocks end higher for sixth straight week, tech leads

NEW YORK (Reuters) - The Nasdaq composite stock index closed at a 12-year high and the S&P 500 index at a five-year high, boosted by gains in technology shares and stronger overseas trade figures.


The S&P 500 also posted a sixth straight week of gains for the first time since August.


The technology sector led the day's gains, with the S&P 500 technology index <.splrct> up 1.0 percent. Gains in professional network platform LinkedIn Corp and AOL Inc after they reported quarterly results helped the sector.


Shares of LinkedIn jumped 21.3 percent to $150.48 after the social networking site announced strong quarterly profits and gave a bullish forecast for the year.


AOL Inc shares rose 7.4 percent to $33.72 after the online company reported higher quarterly profit, boosted by a 13 percent rise in advertising sales.


Data showed Chinese exports grew more than expected, a positive sign for the global economy. The U.S. trade deficit narrowed in December, suggesting the U.S. economy likely grew in the fourth quarter instead of contracting slightly as originally reported by the U.S. government.


"That may have sent a ray of optimism," said Fred Dickson, chief market strategist at D.A. Davidson & Co in Lake Oswego, Oregon.


Trading volume on Friday was below average for the week as a blizzard swept into the northeastern United States.


The U.S. stock market has posted strong gains since the start of the year, with the S&P 500 up 6.4 percent since December 31. The advance has slowed in recent days, with fourth-quarter earnings winding down and few incentives to continue the rally on the horizon.


"I think we're in the middle of a trading range and I'd put plus or minus 5.0 percent around it. Fundamental factors are best described as neutral," Dickson said.


The Dow Jones industrial average <.dji> ended up 48.92 points, or 0.35 percent, at 13,992.97. The Standard & Poor's 500 Index <.spx> was up 8.54 points, or 0.57 percent, at 1,517.93. The Nasdaq Composite Index <.ixic> was up 28.74 points, or 0.91 percent, at 3,193.87, its highest closing level since November 2000.


For the week, the Dow was down 0.1 percent, the S&P 500 was up 0.3 percent and the Nasdaq up 0.5 percent.


Shares of Dell closed at $13.63, up 0.7 percent, after briefly trading above a buyout offering price of $13.65 during the session.


Dell's largest independent shareholder, Southeastern Asset Management, said it plans to oppose the buyout of the personal computer maker, setting up a battle for founder Michael Dell.


Signs of economic strength overseas buoyed sentiment on Wall Street. Chinese exports grew more than expected in January, while imports climbed 28.8 percent, highlighting robust domestic demand. German data showed a 2012 surplus that was the nation's second highest in more than 60 years, an indication of the underlying strength of Europe's biggest economy.


Separately, U.S. economic data showed the trade deficit shrank in December to $38.5 billion, its narrowest in nearly three years, indicating the economy did much better in the fourth quarter than initially estimated.


Earnings have mostly come in stronger than expected since the start of the reporting period. Fourth-quarter earnings for S&P 500 companies now are estimated up 5.2 percent versus a year ago, according to Thomson Reuters data. That contrasts with a 1.9 percent growth forecast at the start of the earnings season.


Molina Healthcare Inc surged 10.4 percent to $31.88 as the biggest boost to the index after posting fourth-quarter earnings.


The CBOE Volatility index <.vix>, Wall Street's so-called fear gauge, was down 3.6 percent at 13.02. The gauge, a key measure of market expectations of short-term volatility, generally moves inversely to the S&P 500.


"I'm watching the 14 level closely" on the CBOE Volatility index, said Bryan Sapp, senior trading analyst at Schaeffer's Investment Research. "The break below it at the beginning of the year signaled the sharp rally in January, and a rally back above it could be a sign to exercise some caution."


Volume was roughly 5.6 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the 2012 average daily closing volume of about 6.45 billion.


Advancers outpaced decliners on the NYSE by nearly 2 to 1 and on the Nasdaq by almost 5 to 3.


(Additional reporting by Angela Moon; Editing by Bernadette Baum, Nick Zieminski, Kenneth Barry and Andrew Hay)



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Michigan, Kansas go down as run continues


There goes another one, and another one.


No. 3 Michigan, fifth-ranked Kansas and No. 11 Louisville all lost on Saturday, continuing a perilous stretch for the Top 25.


The Wolverines became the third top-three team to fall this week when Ben Brust hit a tiebreaking 3-pointer with less than 40 seconds left in overtime, leading Wisconsin to a 65-62 victory. Brust also tied the game at the end of regulation with a heave from just inside halfcourt.


That's just the way it has gone lately for the top of the poll.


No. 2 Florida lost at Arkansas on Tuesday night, and No. 1 Indiana dropped a 74-72 decision at Illinois on Thursday. This should be the sixth straight week with a different No. 1 in The Associated Press' Top 25, which would be the second-longest streak since the first AP poll in 1949.


The Jayhawks have dropped three straight games for the first time in eight years after they lost 72-66 at Oklahoma.


"It hasn't been a good week for us by any stretch, but let's be real," Kansas coach Bill Self said. "We were ranked No. 2 in the country seven days ago, and you don't go from being a good team to a bad team overnight.


"We've had a couple of bad outings, but we're still a good team."


The current string of No. 1 swapping is the longest since 1994, when Arkansas, North Carolina, Kansas, UCLA and Duke alternated at the top seven straight weeks — the longest streak since Saint Louis debuted as No. 1 in the initial AP poll.


But it isn't just the teams at the top that are having trouble. Top 25 teams all over the country are getting knocked off by unranked opponents.


According to STATS LLC, Top 25 teams lost to unranked teams 36 times from Jan. 17 to Feb. 6 this season, most in at least 17 years.


Louisville lost 104-101 in five overtimes at No. 25 Notre Dame on Saturday night. It was the longest regular-season game in Big East history.


The Irish trailed by eight with 46 seconds left in regulation.


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China needs smog-free air in a can

































Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing


Hazardous smog over Beijing





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STORY HIGHLIGHTS


  • This year has been one of the worst for air quality in China

  • Residents have termed the smog event the "air-pocalypse"

  • John Sutter says the country should pass a Clean Air Act

  • It's a matter of human rights and public health, not image




Editor's note: John D. Sutter is a columnist for CNN Opinion. He heads the section's Change the List project, which focuses on human rights and social justice. E-mail him at CTL@CNN.com.


(CNN) -- Air pollution in China has gotten so bad lately that one environmentalist's wacky idea for a solution doesn't seem all that far-fetched: putting clean air in a can.


Last week, when a thick gray haze blanketed Beijing and several other Chinese cities, sending kids to the hospital, grounding planes and causing the government to order cars off the road, Chen Guangbiao took to the streets in Beijing to hand out yellow and green cans of smog-free, non-carcinogenic air.


"Free fresh air. Open it and drink it and breathe it!" the Guardian quoted the multimillionaire and national celeb as saying. "It keeps you fresh the whole day!"


Ego aside (the bright cans feature an image of Chen's face and the words "Chen Guangbio is a good man" on them), the clever, political stunt is just the sort of thing that China needs these days. Such creative and public protests should help push forward much-needed national reforms to combat air pollution in the country.


A "Clean Air Act" for China is long overdue.



John D. Sutter

John D. Sutter



And the recent "air-pocalypse," as the suffocating air pollution that hung over several Chinese cities in January has been termed, should be more than enough proof of that.


The pollution during the 2013 Great Smog of China was so thick last month that it was visible from space (from space!). Breathing in Beijing was "akin to living in a smoking lounge," according to an analysis from Bloomberg. Air quality readings literally were off the charts. An index reading below about 50 is considered healthy. Readings for Beijing in January hit 500, the top of the index, and went higher than 700, according to the U.S. Embassy.


"The air has this kind of greenish-gray pallor to it. And it smells like you're standing next to a chemical plant, really chlorine-y," said David Pettit, a senior attorney at the Natural Resources Defense Council, an environmental group. "It's an awesomely bad smell."
















He was telling me about Beijing air on a normal day.


"I'm standing outside my office building but am unable to see its top," one Beijing resident said, according to China's state news agency, Xinhua.


"The new normal in Beijing is sending your kids to school wearing gas masks ..." Christina Larson wrote in Bloomberg Businessweek.


Fixing China's air pollution is not just about the country's image or economy, although those certainly suffer because of smog, too. It's about the right of all humans to walk outside and breathe in air that won't choke them or make them sick.


The AFP reports hospital visits for respiratory problems were up 20% during the air-pocalypse. Last year, small particle air pollution, called PM2.5, in four major Chinese cities resulted in 8,572 premature deaths, according to a December study by Greenpeace East Asia and Peking University's School of Public Health.


Similar deaths can and should be prevented.


And I'm optimistic they will be. For several reasons.


The first is history. It wasn't all that long ago, in 1952, that the "Great Smog" covered London in gray, sooty pollution, resulting in an estimated 4,000 premature deaths.



The government reacted by passing sweeping reforms.


Now London is known for its real fog, not smog.


Air pollution in Los Angeles was handled in a similar fashion.


After the city's car culture created a smog problem, scientists started researching protective helmets to protect people. Others wore gas masks. But, eventually the government took action to reduce the pollution. California led the way for the nation, and in 1963, the United States passed the Clean Air Act.


That law is credited with preventing 205,000 premature deaths, 843,000 asthma attacks and 18 million child respiratory illnesses in 1990, based on the first 20 years of the law.


These changes took time. And it's unfortunate that things had to get bad before they could get better. But China, like others, is finally realizing that its air really is that bad.


Its own people are calling for the change and more vigorously than before.


More than 200 students at a Beijing high school school signed a petition asking the city to "amend air quality regulations and take specific emergency measures," according to Calum MacLeod from USA Today. And on Weibo, China's version of Twitter, Pan Shiyi, a real estate magnate, called for the country to adopt its own Clean Air Act. When he posed the idea to his 14 million Weibo followers in an online poll, nearly all of the 50,000-some people who responded said they supported that type of national legislation.


Maybe that's just one man's social media feed. But there's a history of this kind of thing working in China. In 2011, Pan successfully used his online network to press Beijing authorities to report more smog data, according to the Wall Street Journal's China blog.


It's clear the government has taken notice this time as well. Beijing implemented several emergency measures to curb smog. State media is talking about the pollution.


After speaking with a few experts, it seems clear what needs to be done: China has to reduce its reliance on coal, increase renewable energy, regulate the amount of smog-causing sulfur that can go into its diesel fuel and increase vehicle efficiency.


"It's not rocket science," said Pettit, from NRDC.


There will, of course, be costs and significant challenges. China burns "nearly as much coal as the rest of the world combined," according to a recent report from the U.S. Energy Information Administration. Beijing catches so much of the pollution from coal-burning power plants because it sits at the center of a ring of mountains, which help trap the smog. Throw a bunch more cars into the mix, 13 million of them were sold in China last year, according to IHS Automotive and the problems start compounding.


Fixes may be expensive, but the United States has made the compelling case that the costs of enforcing clean air regulations are offset by gains in health and worker productivity. China, which does have some air quality regulations, already seems to be realizing this. The country on Wednesday announced stricter fuel standards that go into effect by the end of 2014 for diesel and 2017 for gas, according to the Financial Times. An environmental official, Wu Xiaoqing, also told state media this week that "China will formulate regulations, standards and policies to reduce air pollutants and control coal burning."


The energy industry estimates it will costs billions for China to meet tougher fuel standards. It may be up to people like the artist Ai Weiwei, who posed in a photo wearing a gas mask, and Chen, the man who's peddling cans of clean air, to ensure that the public and the government see that clean air is worth the cost.


"I want to tell mayors, county chiefs and heads of big companies: Don't just chase GDP growth, don't chase the biggest profits at the expense of our children and grandchildren, and at the cost of sacrificing our ecological environment," Chen told Reuters.


If Chinese leaders don't want to drink air from a can, they should listen.


Follow us on Twitter @CNNOpinion.


Join us on Facebook/CNNOpinion.


The opinions expressed in this column are solely those of John D. Sutter.






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Joyous memories at Hadiya Pendleton funeral









Slain teen Hadiya Pendleton was remembered today as a laughing youth who brought love and happiness to all her family and friends.

Despite the heavy security because of the attendance of first lady Michelle Obama and other dignitaries, Hadiya's funeral at the Greater Harvest Baptist Church only occasionally touched on politics and the gun violence that ended Hadiya's life, instead focusing on a 15-year-old girl whose smile lit up the room.

Her mother, Cleopatra Cowley-Pendleton, briefly spoke to the standing room only crowd, often with a smile and even a laugh.

“My baby did all this,’’ she said, wearing a big red flower on her chest and a sparkly scarf, and clearly enjoying the music. "This is all Hadiya.’’

“The outpouring of support has been absolutely amazing,’’ she said.
 
She explained that at points, “you kinda do not know how to act,’’ and some people might not understand “our sense of humor’’ or “why I have a smile on my face.’’

“But I’m not worried about her soul,’’ she said.

“I just want to say thank you. Thank you to everyone who had something to do with rounding her or having something to do with who she was,’’ she said.

Then appearing more serious, she said, “No mother, no father should ever have to experience this.’’

“I kept her living,’’ she said, saying she helped her daughter stay away from negative influences. "When your children try to talk to you, listen. Don’t judge them. This should be a judge-free zone. You made them. You deal with that."
 
“All right, I love you all,’’ she said before ending her remarks.

Earlier the crowd was addressed by Damon Stewart, Hadiya's godfather, who said, “I’m going to speak as if we’re family,’’ adding that he had “two spiritual thoughts’’ he wanted to stress.

“God makes no mistakes,’’ he said. “I don’t believe in coincidence; I believe in divine intervention.’’

Wearing a black suit and black shirt, he also wore purple in honor of Hadiya -- a purple tie and ribbon on his chest, and a purple handkerchief in chest pocket.
 
“I loved that child,’’ he said.

Stewart quoted Hadiya's father, Nathaniel Anthony Pendleton, as saying, "This isn't political, this is personal."

Then Stewart said: "This should break the hearts of everyone who has someone they love."

He said he read a Facebook post that said: "I'm not going to buy into the hype. What makes this girl so much better than the others?"

"She is important because all those other people who died are important," Stewart said. "She is important because all of the families who were silent, she speaks for them. She is a representative of the people across the nation who have lost their lives."

"Don't let this turn into a political thing. Keep it personal," he said. "A lot of politicians will try to wield it as a sword. They want to use it for votes."

While family and friends kept the focus on the 15-year-old girl who was shot dead in a South Side park, the first lady's appearance inevitably brought attention to anti-gun efforts nationwide.

The back of the funeral program has a copy of a handwritten note from President Barack Obama: "Dear Cleopatra and Nathaniel, Michelle and I just wanted you to know how heartbroken we are to have heard about Hadiya's passing. We know that no words from us can soothe the pain, but rest assured that we are praying for you, and that we will continue to work as hard as we can to end this senseless violence. God Bless.”

In addition to Michelle Obama, dignitaries in the crowd included Gov. Pat Quinn, Mayor Rahm Emanuel, Cook County Board President Toni Preckwinkle, Ill. Attorney General Lisa Madigan, Rev. Jesse Jackson,  Secretary of Education Arne Duncan and Valerie Jarrett, senior adviser to Barack Obama.

Prior to the service, the first lady met privately with about 30 of Hadiya's friends and classmates, and then with members of Hadiya's family, according to a White House official.

Father Michael Pfleger spoke and called Hadiya an "innocent victim of gun violence,’’ asking,  “When did we lose our soul?”

He told the crowd that “we must become like Jesus’’ and become “the interrupters’’ of genocide, an evil that is killing our children.
 
“Welcome home, sweet Hadiya. See you on the other side," he said.

Hadiya was killed Jan. 29 at Harsh Park, in the 4400 block of South Oakenwald Avenue, not far from the Obama family home. Although Hadiya and the friends that were with her had no gang ties, a gunman fired into the park in what police said was a gang-connected shooting causing her death to become a symbol of Chicago's gun violence.

But most of the funeral service was about Hadiya's life, and the love she brought to so many.

Hadiya's pastor, Courtney C. Maxwell from the Greater Deliverance Temple Church of Christ, opened the services about 11:15 a.m. after a heart-shaped balloon was placed near her casket.
 
He thanked everyone for being at the Greater Harvest Baptist Church, including elected officials. “The family says thank you and God bless you.’’ He asked for round of applause for the Pendleton family.
 
“Only God can keep you and strengthen you, for God is our refuge and our strength,’’ the pastor said.

The pastor said Hadiya was “genuine and real.’’

“She was energetic, loved music, loved the arts,’’ the pastor said.

After the pastor spoke, a female reverend dressed in white addressed the crowd and a choir behind her began singing.

“Blessed are they that mourn, for they shall be comforted,’’ she said, as the choir sang after her.

An assistant pastor read from scriptures: "She is more precious than rubies. … Her ways are of pleasantness.’’

Pastor Elder Eric Thomas of the host Greater Harvest Baptist Church described Hadiya as a “beloved angel.’’
 
“Her life has not been in vain,’’ Thomas said.
 
A female singer and organist the played a religious song, as about 30 others in the choir, all dress in white, stood and swayed gently from side to side before the large cross that was draped in white.

Kenya Edwards, who identified herself as a radio personality and a friend, read a poem called “Walking’’ written for Hadiya by Zora Howard, then said: “Ladies and gentlemen, it’s time for us to start walking. It’s time to take a stand.’’

Hadiya’s aunt Linda Wilks then spoke, asking, “What was inside Hadiya that connected her to those who didn’t know her?”

“It was her inner light’’ that connected her with humanity’s inner light, she said. “Light has power and has potent force,’’ and can cause "mankind to feel an inner awakening and a sense of love.’’

“Light can pursue darkness ... it diffuses darkness,’’
her aunt said. "Hadiya. The light.’’

Several girls who all identified themselves as Hadiya’s best friends got up, one by one, to share warm and funny and very sad memories.
 
One girl, Kaylen Jones, drew laughter when she said Hadiya’s mom “guilted me’’ into talking, then said one of the things she will remember most is Hadiya's smile.
 
“That smile lit up a room’’ she said. “It was the last thing I saw before they put her into the ambulance.’’

“I loved her. These past few weeks I felt like there’s a part of me missing,’’ Jones said.

“But she’s right here, whispering the answers to us in chemistry,’’ she said, drawing huge laughs and applause.
 
Another girlfriend, Giselle, was holding a tissue and broke down in tears, having to stop at least twice during her thoughts.
 
“Hadiya always pushed me to do my very best,’’ she said, wiping her eyes. “We were going to go to college together.’’

Giselle said after losing Hadiya she had tweeted to friends "I just wanted a last hug," and two days later "I had a dream that she gave me a hug."

“I believe that she came back and gave me a last hug,’’ she said.
 
Many others remembered her laughter and her smile. Others had short songs they sang to the crowd and shared favorite memories of her.
 
Her King College Prep majorette team also got up, and presented her jacket in a frame to Hadiya's mother, who embraced her in a long hug.
 
Kierrra Wilson, the captain of the majorette team, which had performed for festivities during the weekend before President Obama's second inauguration, spoke first.

“It’s really hard being up here,’’ she said. “Hadiya was close to all of us.’’

The entire team, dressed in their black and gold outfits, engaged in a group hug.
 
Another teammate also recalled the Washington trip, saying Hadiya never lost her sense of humor even though they were “so tired.’’

She said she would always remember Hadiya’s laughter, and told a story that caused the crowd to chuckle. “She tries to tell a scary story and nobody can believe it,’’ she said. "She had a little baby voice.’’


Hadiya’s cousin got up and told the crowd Hadiya often talked about college.

“She always wanted to go to Harvard,’’ he said, before reading a poem he wrote about her that included the lines: “Sweeter than a tomato from the garden of fruit. You will always be loved. ... Save a spot for me above."

Hadiya’s little brother spoke briefly, recalling how his big sister would think of funny names.

A Nation of Islam representative spoke, offering condolences and saying, “We have come here to celebrate the life and light of this star of God."

"We pray for peace. We thank God for this beautiful gift … Hadiya,’’ he said.


The service ended about 2:37 p.m. as pallbearers began to move the casket, covered in a white cloth emblazoned with a gold cross, and the choir continued singing.
 
“There's a new name written in glory,’’ one of the pastors said. “Thank you, God, for our angel Hadiya."

By 2:44 p.m. people were moving out of the church. After the service, the first lady remained seated until the immediate family was out of the church. She was then escorted out though a private exit and left without public comment.

Hundreds of mourners had lined up early today at the church in the Washington Park neighborhood, which was under tight security.

Guests who were invited by the family were given orange wristbands and were able to enter through a shorter security line. Classmates and friends of Pendleton were given green wristbands and allowed to enter through that same line.

Trinity Dishmon, 40, said her daughter Deja, 15, and Hadiya were close friends in middle school. The two girls stayed in touch and were texting about their upcoming 16th birthdays while Hadiya was in D.C. for the president's inauguration in January.

"Hadiya was a gift to everyone that knew her," Dishmon said, tearing up. "These last 12 days have been unbelievably numbing. It's not six degrees of separation anymore, it's one. It's just unreal."

Dishmon said she feared that the day was less about the teenager and more about a larger issue.

"This is Hadiya's day and should be about her -- not something sensational," Dishmon said. "But maybe by honoring her life we can help make a difference."

Inside the church, Hadiya’s silver casket was placed in the front, surrounded by flowers and two large hearts, one with her picture on it. Behind the casket, a TV screen showed pictures of Hadiya with her family, from birth to her teenage years.

A funeral director wearing a suit and white gloves came outside at 9:40 a.m. to announce to the hundreds still waiting in line that the church was “at capacity.” Those still in line could come in and view the body, he said, but would have to leave before the services.

The funeral procession arrived at about 9:45 a.m., including three limousines and dozens of cars.

The first lady’s motorcade pulled into the church parking lot at about 10:15 a.m. She went in through a separate side entrance at the rear of the church, stepping directly from a vehicle into the building.

The family filed down the aisle a little after 10 a.m. and viewed the body in the still open casket. The pastor led the procession down the aisle chanting "the Lord is my shepherd" as soft organ music played in the background.

Ushers walked down the aisle handing out tissues, and those without wristbands were asked to give up their seats so that family members could be seated in the sanctuary. Every seat was filled by 9:45 a.m.

Purple, Hadiya’s favorite color, is represented in many of the flowers in the church and the lining of her casket. Ushers handed out a glossy funeral program booklet printed on purple paper. The front cover says "Celebrating The Life Of ... Hadiya Zaymara Pendleton.” Inside are more than 50 photos of Hadiya throughout her life.
 
Her obituary printed in the booklet describes her work in the church and even her favorite foods: Chinese, cheeseburgers, ice cream and Fig Newtons. It includes tributes from her grandmother, her cousin and an aunt as well as close friends.

About 10:15 a.m., the funeral director came back out and announced to the hundreds still waiting in line that no one else would be allowed inside — not for the viewing or the funeral.

Even after those outside were told they would not be allowed in, many continued to gather around the church's front gate.

Some began to file out, having to hop over the metal barricades to exit the long line.

One man asked the funeral staff member if he could at least have a pamphlet from the funeral before he left.

"Oh sir, those are long gone. They only printed 1,500," the funeral staff member said.

Activists, religious groups and others passed out printed material to those standing in line. Some kept the papers, others were left on the snowy ground as some of the crowd left.








A group of people who were not allowed inside the church after it reached capacity stood outside in the freezing weather for hours as the funeral went on.

Police put up additional barricades near the church entrance gate to keep new people arriving back.

At 2 p.m. a few people trickled out of the church, including a handful of King College Prep majorettes. Police were not allowing anyone else in for the service, even as people left.

Some had been standing outside for hours, hunched over in the cold. The group continued to talk as the hours passed.

A number of police cars circled the block during funeral services -- including officers in vans, SUVs and undercover cars. Helicopters could be seen and heard overhead.

Michelle Obama's attendance puts Chicago solidly in the middle of a national debate over gun violence that has polarized Congress and forced President Obama to take his gun control initiatives on the road to garner more public support.

The first lady's visit is being seen not only as a gesture of condolence to the family but as part of an effort to draw attention and support for the president's gun initiatives.

But the visit also meant scores of security, police and Secret Service agents, metal detectors and other security measures.

The church is surrounded by an iron fence and all of the openings -- a pedestrian gate in the front, front and side doors to the church, and a driveway to the north -- are guarded by city police or men in white shirts, ties and long black coats. Chicago police vehicles -- two wagons, a handful of squads and SUVs -- guarded the outside of the church while other vehicles circle the block.

Chicago police staffing the event are wearing dress blues -- a blue overcoat with pockets that allow access to the duty belt, creased navy pants, and a hat.

King College Prep math and engineering teacher Alonzo Hoskins stood quietly in line with others. He said he taught Hadiya in his first-period geometry class, where he now has an empty desk.

"She was full of life," Hoskins said.

Nate Weathers, 16,  Jeramy Brown, 16, and Antoine Fuller, 15, all stood in line to see their former classmate. The three young men said they attended Carter G. Woodson Middle School with Hadiya.

“This tears me up,” Fuller said. “She was my 7th grade crush.”

Brown described Hadiya as “sweet and innocent.”

“Something like this should have never happened to her,” Brown said.


Police took two men into custody after they got into an altercation near the back of the long line of mourners waiting to get into the church. One man was agitated, complaining about the long wait to get in. A second man confronted him and they began shoving each other before police intervened.


Local and national pool reports contributed.

chicagobreaking@tribune.com


Twitter: @chicagobreaking 



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Israel's Lieberman says Palestinian peace accord impossible


JERUSALEM (Reuters) - Israel has no chance of signing a permanent peace accord with the Palestinians and should instead seek a long-term interim deal, the most powerful political partner of Prime Minister Benjamin Netanyahu said on Saturday.


The remarks by Avigdor Lieberman, an ultranationalist whose joint party list with Netanyahu narrowly won a January 22 election while centrist challengers made surprise gains, seemed designed to dampen expectations at home and abroad of fresh peacemaking.


A spring visit to Israel and the Palestinian territories by U.S. President Barack Obama, announced this week, has stirred speculation that foreign pressure for a diplomatic breakthrough could build - though Washington played down that possibility.


In a television interview, ex-foreign minister Lieberman linked the more than two-year-old impasse to pan-Arab political upheaval that has boosted Islamists hostile to the Jewish state.


These include Hamas, rivals of U.S.-backed Palestinian President Mahmoud Abbas, who control the Gaza Strip and spurn coexistence with Israel though they have mooted extended truces.


"Anyone who thinks that in the center of this socio-diplomatic ocean, this tsunami which is jarring the Arab world, it is possible to arrive at the magic solution of a comprehensive peace with the Palestinians does not understand," Lieberman told Israel's Channel Two.


"This is impossible. It is not possible to solve the conflict here. The conflict can be managed and it is important to manage the conflict ... to negotiate on a long-term interim agreement."


Abbas broke off talks in late 2010 in protest at Israel's settlement of the occupied West Bank. He angered Israel and the United States in November by securing a U.N. status upgrade that implicitly recognized Palestinian independence in all the West Bank, East Jerusalem and Gaza.


Israel insists it will keep East Jerusalem and swathes of West Bank settlements under any eventual peace deal. Most world powers consider the settlements illegal because they take up land seized in the 1967 Middle East war.


Lieberman, himself a West Bank settler, said the ball was "in Abu Mazen's (Abbas') court" to revive diplomacy.


Abbas has demanded Israel first freeze all settlement construction. With two decades gone since Palestinians signed their first interim deal with Israel, he has ruled out any new negotiations that do not solemnize Palestinian statehood.


Netanyahu's spokesman Mark Regev noted that Lieberman, in the Channel Two interview, had said he was expressing his own opinion.


Asked how Netanyahu saw peace prospects for an accord with the Palestinians, Regev referred to a speech on Tuesday in which the conservative prime minister said that Israel, while addressing threats by its enemies, "must also pursue secure, stable and realistic peace with our neighbors".


Netanyahu has previously spoken in favor of a Palestinian state, though he has been cagey on its borders and whether he would be prepared to dismantle Israeli settlements.


Lieberman's role in the next coalition government is unclear as he faces trial for corruption. If convicted, he could be barred from the cabinet. Lieberman denies wrongdoing and has said he would like to regain the foreign portfolio, which he surrendered after his indictment was announced last year.


(Writing by Dan Williams; Editing by Stephen Powell)



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