With record highs in sight, stocks face roadblocks

NEW YORK (Reuters) - If Wall Street needs to climb a wall of worry, it will have plenty of opportunity next week.


Major U.S. stock indexes will make another attempt at reaching all-time records, but the fitful pace that has dominated trading is likely to continue. Next Friday's unemployment report and the hefty spending cuts that look like they about to take effect will be at the forefront.


The importance of whether equities can reach and sustain those highs is more than Wall Street's usual fixation on numbers with psychological significance. Breaking through to uncharted territory is seen as a test of investors' faith in the rally.


"It's very significant," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.


"The thinking is, there's just not enough there for an extended bull run," he said. "If we do break through (record highs), then maybe the charts and price action are telling us there's something better ahead."


Flare-ups in the euro zone's sovereign debt crisis and next Friday's report on the U.S. labor market could jostle the market, though U.S. job indicators have generally been trending in a positive direction.


Small- and mid-cap stocks hit lifetime highs in February. Now the Dow Jones industrial average <.dji> and the S&P 500 <.spx> are racing each other to the top. The Dow, made up of 30 stocks, is about 75 points - less than 1 percent - away from its record close of 14,164.53, which it hit on October 9, 2007. The broader S&P is still 3 percent away from its closing high of 1,565.15, also reached on October 9, 2007.


The advantage may be in the Dow's court. So far in 2013, it has gained 7.5 percent, beating the S&P 500 by about 1 percent.


THE RALLY AND THE REALITY CHECK


The Dow's relative strength owes much to its unique make-up and calculation, as well as to investors' recent preference for buying value stocks likely to generate steady reliable gains, rather than growth stocks.


But the more defensive stance illustrates how stock buyers are getting concerned about this year's rally. While investors don't want to miss out on gains, they're picking up companies that are less likely to decline as much as high-flying names - if a market correction comes.


The Russell Value Index <.rav> is up 7.6 percent for the year so far, outpacing the Russell Growth Index's <.rag> 5.7 percent rise. Within the realm of the S&P 500, the consumer staples sector led the market in February, gaining 3.1 percent.


There is some concern that growth-oriented names are being eclipsed by defensive bets, said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati.


"This isn't a be-all and end-all sell signal by any means, but we would feel much more comfortable if some of the more aggressive areas, like technology and small caps, would start to gain some leadership here," Detrick said.


Signs that investors are becoming concerned about the rally's pace is evident in the options market, where the ratio of put activity to call activity has recently shifted in favor of puts, which represent expectations for a stock to fall.


"We are seeing some put hedging in the financials, building up for the past month," said Henry Schwartz, president of options analytics firm Trade Alert in New York.


The put-to-call ratio representing an aggregate of about 562 financial stocks is 1:1, when normally, calls should be outnumbering puts.


Investors have no shortage of reasons to crave the relative safety of blue chips and defensive stocks. Although markets have mostly looked past uncertainty over Washington's plans to cut the deficit, fiscal policy negotiations still pose a risk to equities.


The $85 billion in spending cuts set to begin on Friday is expected to slow economic growth this year if policymakers do not reach a new deal. Markets so far have held firm despite the wrangling in Washington, but tangible economic effects could pinch stock prices going forward.


The International Monetary Fund warned that full implementation of the cuts would probably take at least 0.5 percentage point off U.S. growth this year.


EASY MONEY AND TEPID HIRING


Investors will also take in a round of economic data at a time when concerns are percolating that the market is being pushed up less by fundamentals and more by loose monetary policy around the world.


The main economic event will be Friday's non-farm payrolls report for February. The U.S. economy is expected to have added 160,000 jobs last month, only a tad higher than in January, in a sign the labor market is healing at a slow pace. The U.S. unemployment rate is forecast to hold steady at 7.9 percent.


While lackluster data has been a catalyst in the past for stock market gains as investors bet it would ensure continued stimulus from the Federal Reserve, that sentiment may be wearing thin.


Markets stumbled last week following worries that the Fed might wind down its quantitative easing program sooner than expected.


"It shows the underpinning of the market is being driven at this point by monetary policy," Hellwig said.


With investors questioning what is behind the rally, it will make a run to record highs even more significant, Hellwig added.


"There's smart people that are in the bull camp and the bear camp and the muddle-through camp," Hellwig said. "The fact that you can statistically, using historical evidence, make a case for going higher, lower, or staying the same makes this number very important this time around."


(Wall St Week Ahead runs every Friday. Comments or questions on this column can be emailed to: leah.schnurr(at)thomsonreuters.com)


(Reporting by Leah Schnurr; Additional reporting by Doris Frankel in Chicago; Editing by Jan Paschal)



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U.S. evolves on same-sex marriage






STORY HIGHLIGHTS


  • The president and the nation have shifted perspectives on same-sex marriage

  • Supreme Court ruling on California's same-sex marriage ban a critical test

  • Growing public support for gay marriage give proponents hope for change




Washington (CNN) -- The nation's growing acceptance of same-sex marriage has happened in slow and painstaking moves, eventually building into a momentum that is sweeping even the most unlikely of converts.


Even though he said in 2008 that he could only support civil unions for same-sex couples, President Barack Obama nonetheless enjoyed strong support among the gay community. He disappointed many with his conspicuously subdued first-term response to the same-sex marriage debate.


Last year, after Vice President Joe Biden announced his support, the president then said his position had evolved and he, too, supported same-sex marriage.


So it was no small matter when on Thursday the Obama administration formally expressed its support of same-sex marriage in a court brief weighing in on California's Proposition 8, which bans same-sex weddings. The administration's effort was matched by at least 100 high-profile Republicans — some of whom in elections past depended on gay marriage as a wedge issue guaranteed to rally the base — who signed onto a brief supporting gay couples to legally wed.


Obama on same-sex marriage: Everyone is equal


Then there are the polls that show that an increasing number of Americans now support same-sex marriage. These polls show that nearly half of the nation's Catholics and white, mainstream Protestants and more than half of the nation's women, liberals and political moderates all support same-sex marriage.


According to Pew Research Center polling, 48% of Americans support same-sex marriage with 43% opposed. Back in 2001, 57% opposed same-sex marriage while 35% supported it.


In last year's presidential election, same-sex marriage scarcely raised a ripple. That sea change is not lost on the president.


"The same evolution I've gone through is the same evolution the country as a whole has gone through," Obama told reporters on Friday.


Craig Rimmerman, professor of public policy and political science at Hobart and William Smith colleges says there is history at work here and the administration is wise to get on the right side.


"There is no doubt that President Obama's shifting position on Proposition 8 and same-sex marriage more broadly is due to his desire to situate himself on the right side of history with respect to the fight over same-sex marriage," said Rimmerman, author of "From Identity to Politics: The Lesbian and Gay Movements in the United States."


"I also think that broader changes in public opinion showing greater support for same-sex marriage, especially among young people, but in the country at large as well, has created a cultural context for Obama to alter his views."


For years, Obama had frustrated many in the gay community by not offering full-throated support of same-sex marriage. However, the president's revelation last year that conversations with his daughters and friends led him to change his mind gave many in that community hope.










Last year, the Obama administration criticized a measure in North Carolina that banned same-sex marriage and made civil unions illegal. The president took the same position on a similar Minnesota proposal.


Obama administration officials point to what they see as the administration's biggest accomplishment in the gay rights cause: repealing "don't ask, don't tell," the military's ban on openly gay and lesbian members serving in the forces.


Then there was the president's inaugural address which placed the gay community's struggle for equality alongside similar civil rights fights by women and African-Americans.


"Our journey is not complete until our gay brothers and sisters are treated like anyone else under the law, for if we are truly created equal, then surely the love we commit to one another must be equal, as well," Obama said in his address after being sworn in.


In offering its support and asserting in the brief that "prejudice may not be the basis for differential treatment under the law," the Obama administration is setting up a high stakes political and constitutional showdown at the U.S. Supreme Court over a fast-evolving and contentious issue.


The justices will hear California's Proposition 8 case in March. That case and another appeal over the federal Defense of Marriage Act will produce blockbuster rulings from the justices in coming months.


Beyond the legal wranglings there is a strong social and historic component, one that has helped open the way for the administration to push what could prove to be a social issue that defines Obama's second term legacy, Rimmerman said.


The nation is redefining itself on this issue, as well.


Pew survey: Changing attitudes on gay marriage


The changes are due, in part, to generational shifts. Younger people show a higher level of support than their older peers, according to Pew polling "Millennials are almost twice as likely as the Silent Generation to support same-sex marriage."


"As people have grown up with people having the right to marry the generational momentum has been very, very strong," said Evan Wolfson, president of Freedom to Marry, a gay rights organization.


That is not to say that there isn't still opposition.


Pew polling found that most Republicans and conservatives remain opposed to same-sex marriage. In 2001, 21% of Republicans were supportive; in 2012 that number nudged slightly to 25%.


Conservative groups expressed dismay at the administration's same-sex marriage support.


"President Obama, who was against same-sex 'marriage' before he was for it, and his administration, which said the Defense of Marriage Act was constitutional before they said it was unconstitutional, has now flip-flopped again on the issue of same-sex 'marriage,' putting allegiance to extreme liberal social policies ahead of constitutional principle," Family Research Council President Tony Perkins said in a statement.


But there are signs of movement even among some high profile Republican leaders


Top Republicans sign brief supporting same-sex marriage


The Republican-penned friend of the court brief, which is designed to influence conservative justices on the high court, includes a number of top officials from the George W. Bush administration, Mitt Romney's former campaign manager and former GOP presidential candidate Jon Huntsman.


It is also at odds with the Republican Party's platform, which opposes same-sex marriage and defines marriage as a union between a man and a woman.


Still, with White House and high-profile Republican support, legal and legislative victories in a number of states and polls that show an increasing number of Americans support same sex-marriage, proponents feel that the winds of history are with them.


"What we've seen is accelerating and irrefutable momentum as Americans have come to understand who gay people are and why marriage matters," Wolfson said. "We now have a solid national majority and growing support across every demographic. We have leaders across the spectrum, including Republicans, all saying it's time to end marriage discrimination."


CNN's Peter Hamby, Ashley Killough and Bill Mears contributed to this report.






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Closing of Wells Street Bridge creates uncertainty for CTA riders









The shutdown of the Wells Street Bridge has the impact of a blocked artery, straining the circulation of much of the CTA rail system.


The lower tier of the 91-year-old bridge was closed to vehicles and pedestrians in November for repairs, and now it's CTA riders' turn.


Even though only Brown Line and Purple Line/Evanston Express trains normally travel across the Wells bridge connecting the Loop elevated structure to tracks north of the Chicago River, service on six of the eight CTA rail lines is being affected by bridge and track work continuing through the week, transit officials said.








Weekday rush hours are expected to pose the biggest challenge to the transit agency and its customers. Brown Line trains will operate much less frequently during most of the day — running every 10 to 12 minutes, officials said. And Evanston Express service is canceled until March 11. Purple Line local service will continue to operate between Howard Street in Chicago and Linden Avenue in Wilmette.


On weekends, Green, Pink and Orange Line trains will terminate their runs at certain stations in the downtown area, officials said. A weekend free shuttle bus will operate to link the Chicago/Franklin, Merchandise Mart, Clark/Lake, Washington/Wells and Clinton/Lake stations, officials said.


Riders are being told to plan for longer, slower commutes starting Monday on trains that will be more crowded than usual. The frequency of trains on the Brown Line is being reduced because of the need to operate more trains than usual on the Red Line tracks, including in the State Street subway, officials said.


"Experience has taught me to become a little nervous any time the CTA changes service," Rick Gordon, 41, a Brown Line rider who commutes between the Western station and the Washington/Wells stop in the Loop, said Friday morning after getting off the train downtown.


Gordon, an investment counselor, said he still plans to ride the Brown Line on Monday. But because he won't be able to ride across the Wells bridge to his normal stop, he will instead take advantage of the free CTA shuttle bus that will operate between the Chicago Avenue station and the Loop "L," stopping at the Merchandise Mart, the Clark/Lake and Washington/Wells stations.


During rush hours, two of every three southbound Brown Line trains will travel through the Red Line subway tunnel, making all stops to the Roosevelt station, officials said. They will then head north through the subway and up to Fullerton Avenue, then will continue making all Brown Line stops to the Kimball Avenue terminal, officials said.


One of every three Brown Line trains will remain on the regular Brown Line route south of Fullerton but will make the last stop at the Merchandise Mart station, near the north end of the Wells bridge.


Extra service will be provided on the Red Line, in part to accommodate heavier passenger loading caused by the suspension of all Purple Line service south of Howard through the week, officials said. Commuters who normally ride the Purple Line/Evanston Express service might consider budgeting up to an extra hour travel time if they will ride the all-stop Red Line to downtown.


Also, the transit agency will introduce free shuttle trains that circle the Loop and alternative bus service to provide options for the thousands of riders affected over the roughly nine-day bridge closing, which began Friday night.


CTA officials predicted that the commutes of many rail customers will be only several minutes to 15 minutes longer than normal travel times during the service interruptions. But in light of the unpredictability of CTA service even under normal cases, allowing extra time would help commuters ensure they arrive at their destinations on time.


"We urge customers to think about their options because this will not be a typical commute for most Brown and Purple Line commuters," CTA spokesman Brian Steele said, adding that delays are likely on other lines too because of expected ridership shifts.


With some commuters taking Monday off for the Casimir Pulaski Day holiday, the first full test of the CTA's alternative service plan will likely be on Tuesday.


The service disruptions will last until completion of the Wells bridge replacement project, upgrades to the busy downtown rail junction at Lake and Wells streets, and track replacement around the curves at Hubbard and Kinzie streets. Regular CTA service resumes in time for the morning rush period on March 11, following the first phase of bridge reconstruction, officials said.


A second closing of the Wells bridge will occur April 26 through May 5, when the $41.2 million overhaul project is scheduled to be completed, the Chicago Department of Transportation said.


The Wells bridge's trusses, steel framing, railings, bridge houses, major structural parts and mechanical and electrical parts are being replaced, but the original 1920s-era appearance of the double-deck bridge will be maintained, CDOT officials said.


Full details on the CTA service changes are available at transitchicago.com/wellsbridge.


jhilkevitch@tribune.com Twitter @jhilkevitch





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Chad says it killed Algeria hostage mastermind in Mali


N'DJAMENA (Reuters) - Chadian soldiers in Mali have killed Mokhtar Belmokhtar, the al Qaeda commander who masterminded a bloody hostage-taking at an Algerian gas plant in January, Chad's military said on Saturday.


The death of one of the world's most wanted jihadists would be a major blow to al Qaeda in the region and to Islamist rebels already forced to flee towns they had seized in northern Mali by an offensive by French and African troops.


"On Saturday, March 2, at noon, Chadian armed forces operating in northern Mali completely destroyed a terrorist base. ... The toll included several dead terrorists, including their leader Mokhtar Belmokhtar," Chad's armed forces said in a statement read on national television.


On Friday, Chad's president, Idriss Deby, said his soldiers had killed another al Qaeda commander, Adelhamid Abou Zeid, among 40 militants who died in an operation in the same area as Saturday's assault - Mali's Adrar des Ifoghas mountains near the Algerian border.


France - which has used jet strikes against the militants' mountain hideouts - has declined to confirm the killing of either Abou Zeid or Belmokhtar.


In Washington, an Obama administration said the White House could not confirm the killing of Belmokhtar.


Analysts said the death of two of al Qaeda's most feared commanders in the Sahara desert would mark a significant blow to Mali's Islamist rebellion.


"Both men have extensive knowledge of northern Mali and parts of the broader Sahel and deep social and other connections in northern Mali, and the death of both in such a short amount of time will likely have an impact on militant operations," said Andrew Lebovich, a Dakar-based analyst who follows al Qaeda in the Islamic Maghreb (AQIM).


Anne Giudicelli, managing director of security consultancy Terrorisc, said the al Qaeda commanders' deaths - if confirmed - would temporarily disrupt the Islamist rebel network but would also raise concern over the fate of seven French hostages believed to be held by Islamists in northern Mali.


Chad is one of several African nations that have contributed forces to a French-led military intervention in Mali aimed at ridding its vast northern desert of Islamist rebels who seized the area nearly a year ago following a coup in the capital.


Western and African countries are worried that al Qaeda could use the zone to launch international attacks and strengthen ties with African Islamist groups like al Shabaab in Somalia and Boko Haram in Nigeria.


'MARLBORO MAN'


Belmokhtar, 40, who lost an eye while fighting in Afghanistan in the 1990s, claimed responsibility for the seizure of dozens of foreign hostages at the In Amenas gas plant in Algeria in January in which more than 60 people were killed.


That attack put Algeria back on the map of global jihad, 20 years after its civil war, a bloody Islamist struggle for power. It also burnished Belmokhtar's jihadi credentials by showing that al Qaeda remained a potent threat to Western interests despite U.S. forces killing Osama bin Laden in Pakistan in 2011.


Before In Amenas, some intelligence experts had assumed Algerian-born Belmokhtar had drifted away from jihad in favor of kidnapping and smuggling weapons and cigarettes in the Sahara where he earned the nickname "Marlboro Man".


In a rare interview with a Mauritanian news service in late 2011, Belmokhtar paid homage to bin Laden and his successor, Ayman al-Zawahri. He cited al Qaeda's traditional global preoccupations, including Iraq, Afghanistan and the fate of the Palestinians, and stressed the need to "attack Western and Jewish economic and military interests".


He shared command of field operations for AQIM - al Qaeda's North African franchise - with Abou Zeid, although there was talk the two did not get along and were competing for power.


A former smuggler turned jihadi, Algerian-born Abou Zeid imposed a violent form of sharia, Islamic law, in the ancient desert town of Timbuktu, including amputations and the destruction of ancient Sufi shrines.


Robert Fowler, a former Canadian diplomat held hostage by Belmokhtar from 2008 to 2009, told Reuters, "While I cannot consider reports of the death of both Abou Zeid and Mokhtar Belmokhtar as anything but good news ... I must temper my enthusiasm by the fact that this is by no means the first time Belmokhtar's death has been reported."


President Francois Hollande said on Friday that the assault to retake Mali's vast desert north from AQIM and other Islamist rebels that began on January 11 was in its final stage and so could not confirm Abou Zeid's death.


A U.S. official and a Western diplomat said, however, the reports about Abou Zeid's death appeared to be credible.


U.S. Representative Ed Royce, Republican chairman of the House Foreign Affairs Committee, said the killing of Belmokhtar "would be a hard blow to the collection of jihadists operating across the region that are targeting American diplomats and energy workers."


Washington has said it believes Islamists operating in Mali were involved in the killing of the U.S. ambassador in Libya's eastern city of Benghazi in September.


After its success in dislodging al Qaeda fighters from northern Mali's towns, France and its African allies have faced a mounting wave of suicide bombings and guerrilla-style raids by Islamists in northern Malian towns.


U.N. Secretary-General Ban Ki-moon said on Friday that a U.N. peacekeeping force to replace French troops in Mali should be discussed as soon as possible.


Chad was among the quickest to respond to Mali's appeals for help alongside the French, rushing in hundreds of troops experienced in desert warfare, led by Deby's son, General Mahamat Deby.


The country's president may be hoping to polish his regional and international credentials by assisting in this war, while bolstering his own position in power in Chad, which has been threatened in the past by eastern neighbor Sudan.


(Additional reporting by John Irish and David Lewis in Dakar, Gus Trompiz in Paris, and Mark Hosenball and Mark Felsenthal in Washington; Writing by Richard Valdmanis; Editing by Robin Pomeroy and Peter Cooney)



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With record highs in sight, stocks face roadblocks

NEW YORK (Reuters) - If Wall Street needs to climb a wall of worry, it will have plenty of opportunity next week.


Major U.S. stock indexes will make another attempt at reaching all-time records, but the fitful pace that has dominated trading is likely to continue. Next Friday's unemployment report and the hefty spending cuts that look like they about to take effect will be at the forefront.


The importance of whether equities can reach and sustain those highs is more than Wall Street's usual fixation on numbers with psychological significance. Breaking through to uncharted territory is seen as a test of investors' faith in the rally.


"It's very significant," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.


"The thinking is, there's just not enough there for an extended bull run," he said. "If we do break through (record highs), then maybe the charts and price action are telling us there's something better ahead."


Flare-ups in the euro zone's sovereign debt crisis and next Friday's report on the U.S. labor market could jostle the market, though U.S. job indicators have generally been trending in a positive direction.


Small- and mid-cap stocks hit lifetime highs in February. Now the Dow Jones industrial average <.dji> and the S&P 500 <.spx> are racing each other to the top. The Dow, made up of 30 stocks, is about 75 points - less than 1 percent - away from its record close of 14,164.53, which it hit on October 9, 2007. The broader S&P is still 3 percent away from its closing high of 1,565.15, also reached on October 9, 2007.


The advantage may be in the Dow's court. So far in 2013, it has gained 7.5 percent, beating the S&P 500 by about 1 percent.


THE RALLY AND THE REALITY CHECK


The Dow's relative strength owes much to its unique make-up and calculation, as well as to investors' recent preference for buying value stocks likely to generate steady reliable gains, rather than growth stocks.


But the more defensive stance illustrates how stock buyers are getting concerned about this year's rally. While investors don't want to miss out on gains, they're picking up companies that are less likely to decline as much as high-flying names - if a market correction comes.


The Russell Value Index <.rav> is up 7.6 percent for the year so far, outpacing the Russell Growth Index's <.rag> 5.7 percent rise. Within the realm of the S&P 500, the consumer staples sector led the market in February, gaining 3.1 percent.


There is some concern that growth-oriented names are being eclipsed by defensive bets, said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati.


"This isn't a be-all and end-all sell signal by any means, but we would feel much more comfortable if some of the more aggressive areas, like technology and small caps, would start to gain some leadership here," Detrick said.


Signs that investors are becoming concerned about the rally's pace is evident in the options market, where the ratio of put activity to call activity has recently shifted in favor of puts, which represent expectations for a stock to fall.


"We are seeing some put hedging in the financials, building up for the past month," said Henry Schwartz, president of options analytics firm Trade Alert in New York.


The put-to-call ratio representing an aggregate of about 562 financial stocks is 1:1, when normally, calls should be outnumbering puts.


Investors have no shortage of reasons to crave the relative safety of blue chips and defensive stocks. Although markets have mostly looked past uncertainty over Washington's plans to cut the deficit, fiscal policy negotiations still pose a risk to equities.


The $85 billion in spending cuts set to begin on Friday is expected to slow economic growth this year if policymakers do not reach a new deal. Markets so far have held firm despite the wrangling in Washington, but tangible economic effects could pinch stock prices going forward.


The International Monetary Fund warned that full implementation of the cuts would probably take at least 0.5 percentage point off U.S. growth this year.


EASY MONEY AND TEPID HIRING


Investors will also take in a round of economic data at a time when concerns are percolating that the market is being pushed up less by fundamentals and more by loose monetary policy around the world.


The main economic event will be Friday's non-farm payrolls report for February. The U.S. economy is expected to have added 160,000 jobs last month, only a tad higher than in January, in a sign the labor market is healing at a slow pace. The U.S. unemployment rate is forecast to hold steady at 7.9 percent.


While lackluster data has been a catalyst in the past for stock market gains as investors bet it would ensure continued stimulus from the Federal Reserve, that sentiment may be wearing thin.


Markets stumbled last week following worries that the Fed might wind down its quantitative easing program sooner than expected.


"It shows the underpinning of the market is being driven at this point by monetary policy," Hellwig said.


With investors questioning what is behind the rally, it will make a run to record highs even more significant, Hellwig added.


"There's smart people that are in the bull camp and the bear camp and the muddle-through camp," Hellwig said. "The fact that you can statistically, using historical evidence, make a case for going higher, lower, or staying the same makes this number very important this time around."


(Wall St Week Ahead runs every Friday. Comments or questions on this column can be emailed to: leah.schnurr(at)thomsonreuters.com)


(Reporting by Leah Schnurr; Additional reporting by Doris Frankel in Chicago; Editing by Jan Paschal)



Read More..

U.S. evolves on same-sex marriage






STORY HIGHLIGHTS


  • The president and the nation have shifted perspectives on same-sex marriage

  • Supreme Court ruling on California's same-sex marriage ban a critical test

  • Growing public support for gay marriage give proponents hope for change




Washington (CNN) -- The nation's growing acceptance of same-sex marriage has happened in slow and painstaking moves, eventually building into a momentum that is sweeping even the most unlikely of converts.


Even though he said in 2008 that he could only support civil unions for same-sex couples, President Barack Obama nonetheless enjoyed strong support among the gay community. He disappointed many with his conspicuously subdued first-term response to the same-sex marriage debate.


Last year, after Vice President Joe Biden announced his support, the president then said his position had evolved and he, too, supported same-sex marriage.


So it was no small matter when on Thursday the Obama administration formally expressed its support of same-sex marriage in a court brief weighing in on California's Proposition 8, which bans same-sex weddings. The administration's effort was matched by at least 100 high-profile Republicans — some of whom in elections past depended on gay marriage as a wedge issue guaranteed to rally the base — who signed onto a brief supporting gay couples to legally wed.


Obama on same-sex marriage: Everyone is equal


Then there are the polls that show that an increasing number of Americans now support same-sex marriage. These polls show that nearly half of the nation's Catholics and white, mainstream Protestants and more than half of the nation's women, liberals and political moderates all support same-sex marriage.


According to Pew Research Center polling, 48% of Americans support same-sex marriage with 43% opposed. Back in 2001, 57% opposed same-sex marriage while 35% supported it.


In last year's presidential election, same-sex marriage scarcely raised a ripple. That sea change is not lost on the president.


"The same evolution I've gone through is the same evolution the country as a whole has gone through," Obama told reporters on Friday.


Craig Rimmerman, professor of public policy and political science at Hobart and William Smith colleges says there is history at work here and the administration is wise to get on the right side.


"There is no doubt that President Obama's shifting position on Proposition 8 and same-sex marriage more broadly is due to his desire to situate himself on the right side of history with respect to the fight over same-sex marriage," said Rimmerman, author of "From Identity to Politics: The Lesbian and Gay Movements in the United States."


"I also think that broader changes in public opinion showing greater support for same-sex marriage, especially among young people, but in the country at large as well, has created a cultural context for Obama to alter his views."


For years, Obama had frustrated many in the gay community by not offering full-throated support of same-sex marriage. However, the president's revelation last year that conversations with his daughters and friends led him to change his mind gave many in that community hope.










Last year, the Obama administration criticized a measure in North Carolina that banned same-sex marriage and made civil unions illegal. The president took the same position on a similar Minnesota proposal.


Obama administration officials point to what they see as the administration's biggest accomplishment in the gay rights cause: repealing "don't ask, don't tell," the military's ban on openly gay and lesbian members serving in the forces.


Then there was the president's inaugural address which placed the gay community's struggle for equality alongside similar civil rights fights by women and African-Americans.


"Our journey is not complete until our gay brothers and sisters are treated like anyone else under the law, for if we are truly created equal, then surely the love we commit to one another must be equal, as well," Obama said in his address after being sworn in.


In offering its support and asserting in the brief that "prejudice may not be the basis for differential treatment under the law," the Obama administration is setting up a high stakes political and constitutional showdown at the U.S. Supreme Court over a fast-evolving and contentious issue.


The justices will hear California's Proposition 8 case in March. That case and another appeal over the federal Defense of Marriage Act will produce blockbuster rulings from the justices in coming months.


Beyond the legal wranglings there is a strong social and historic component, one that has helped open the way for the administration to push what could prove to be a social issue that defines Obama's second term legacy, Rimmerman said.


The nation is redefining itself on this issue, as well.


Pew survey: Changing attitudes on gay marriage


The changes are due, in part, to generational shifts. Younger people show a higher level of support than their older peers, according to Pew polling "Millennials are almost twice as likely as the Silent Generation to support same-sex marriage."


"As people have grown up with people having the right to marry the generational momentum has been very, very strong," said Evan Wolfson, president of Freedom to Marry, a gay rights organization.


That is not to say that there isn't still opposition.


Pew polling found that most Republicans and conservatives remain opposed to same-sex marriage. In 2001, 21% of Republicans were supportive; in 2012 that number nudged slightly to 25%.


Conservative groups expressed dismay at the administration's same-sex marriage support.


"President Obama, who was against same-sex 'marriage' before he was for it, and his administration, which said the Defense of Marriage Act was constitutional before they said it was unconstitutional, has now flip-flopped again on the issue of same-sex 'marriage,' putting allegiance to extreme liberal social policies ahead of constitutional principle," Family Research Council President Tony Perkins said in a statement.


But there are signs of movement even among some high profile Republican leaders


Top Republicans sign brief supporting same-sex marriage


The Republican-penned friend of the court brief, which is designed to influence conservative justices on the high court, includes a number of top officials from the George W. Bush administration, Mitt Romney's former campaign manager and former GOP presidential candidate Jon Huntsman.


It is also at odds with the Republican Party's platform, which opposes same-sex marriage and defines marriage as a union between a man and a woman.


Still, with White House and high-profile Republican support, legal and legislative victories in a number of states and polls that show an increasing number of Americans support same sex-marriage, proponents feel that the winds of history are with them.


"What we've seen is accelerating and irrefutable momentum as Americans have come to understand who gay people are and why marriage matters," Wolfson said. "We now have a solid national majority and growing support across every demographic. We have leaders across the spectrum, including Republicans, all saying it's time to end marriage discrimination."


CNN's Peter Hamby, Ashley Killough and Bill Mears contributed to this report.






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Blackhawks' streak at 21 with overtime win over Blue Jackets









The beat goes on for the Blackhawks — barely.

Against a banged up and usually bumbling Blue Jackets squad, the Hawks kept their record-setting points streak alive at 21 games with a 4-3 victory in overtime Friday night at the United Center.






The Hawks coughed up a third-period lead but came out on top when Brent Seabrook scored off a terrific feed from Jonathan Toews 3 minutes, 23 seconds into overtime to give them their second victory in as many nights.

"In overtime … you have some chances to jump into the play and take some chances," Seabrook said. "I didn't really expect Toews to make that pass. He didn't look at me once and I didn't yell. He's pretty good in those situations so I just let him do his thing.

"I don't think I shot the puck, it was such a hard pass it hit my stick and just bounced in."

Viktor Stalberg, Patrick Sharp and Bryan Bickell also had goals and Ray Emery earned the victory in goal as the Hawks improved to 18-0-3 on the season. Dating back to last season, the Hawks are at 27 games in a row with at least one point.

Vinny Prospal, Artem Anisimov and Ryan Johansen scored for the Blue Jackets but it wasn't enough as Steve Mason suffered the loss in goal.

The Blue Jackets, who entered the game with the fewest points in the league, were without defensemen James Wisniewski, Jack Johnson and John Moore and forwards Derick Brassard and Brandon Dubinsky but fought gamely.

A night after the Hawks opened their victory over the Blues with a Toews goal just 10 seconds into the game, the Blue Jackets struck quickly when Prospal jumped on a big rebound Emery yielded off a Derek Dorsett shot and fired it into the open net with 31 seconds elapsed.

Patrick Kane nearly tied it when he got free in the slot but fired a puck past Mason that clanged off the left post and slid harmlessly away. Not long after, Emery made a strong save on Cam Atkinson with his left skate to keep it a one-goal deficit.

Stalberg continued his mastery over the Blue Jackets with his 11th goal in his 15th game against them when the winger tapped in a puck in the crease during a scramble at the 16:09 mark. Mason then kept it even when he stoned Marcus Kruger from in front and the opening period ended tied 1-1.

In the second, Daniel Carcillo continued his gritty play with a big hit on the Jackets' Fedor Tyutin. The legal blow drew a response from Nikita Nikitin, who dropped the gloves with Carcillo and was on the receiving end of a flurry of punches from the Hawks winger.

The Blue Jackets kept coming and took the lead when Anisimov's shot from the point deflected off Carcillo and bounded past Emery.

Late in the second, the Hawks' offense kicked into gear. Sharp evened the score 2-2 when his backhander from the left circle somehow made it through Mason's pads and trickled across the goal line.

A splendid individual effort from Bickell put the Hawks ahead with less than a minute later. The winger stripped Anisimov of the puck, skated in two-on-one with Stalberg and rifled a wrist shot from the left dot past Mason to the stick side.

In the third, Emery held the lead when he stoned Prospal on a point-blank shot but later Johansen beat him with a nice move in the slot.

"We're finding ways to really get it done," Stalberg said. "It's pretty amazing to be a part of a run like this. It seems like it hasn't gotten to our heads at all. We're staying with it … and that's all we can do."

ckuc@tribune.com

Twitter @ChrisKuc



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Assad forces take Aleppo village, reopening supply line


BEIRUT (Reuters) - Syrian President Bashar al-Assad's forces seized a village southeast of the city of Aleppo on Friday, reopening a supply line to the country's biggest city where they have been battling rebels for eight months, a monitoring group said.


The Syrian Observatory for Human Rights said the capture of Tel Shghaib marked the last step to creating a land supply route north into Aleppo from Hama province, crucial for Assad's forces who have lost control of part of the main north-south highway.


Rebels say they hold most of the city itself and nearly all the rural hinterland. But they have been unable to achieve a decisive victory and complain that they are outgunned and vulnerable to Assad's air force, artillery and ballistic missiles, which killed dozens of people in Aleppo last week.


The United States pledged direct but non-lethal aid to the rebels at a meeting in Rome on Thursday, disappointing Assad's opponents who had hoped for more tangible military support to tip the balance of forces on the ground.


Activists reported another day of fierce fighting around Aleppo, including the military airport at Nairab, three miles north of Tel Shghaib which Assad's forces retook.


"It's a significant gain for the regime," the British-based Observatory's director Rami Abdelrahman said of the army's push north, which reversed many rebel advances when they moved south into Hama from Aleppo province at the end of last year.


Further east, on the Iraqi frontier, government troops also managed to wrest back control of the Yarubiyah border crossing after insurgents seized it 24 hours earlier, he said.


SYRIA COULD FALL APART


The revolt against Assad, which erupted in March 2011 with mainly peaceful protests, has escalated into civil war between mainly Sunni Muslim forces and troops and militias loyal to Assad, from the minority Alawite community whose faith derives from Shi'ite Islam.


The United Nations says 70,000 people have been killed, nearly a million have fled the country and millions more have been displaced or need aid.


U.N. Secretary-General Ban Ki-moon said on Friday that Syria, a major Arab state on the fault lines of broader Middle East conflict, would fall apart if the government and rebels keep fighting instead of seeking a negotiated peace.


"This is a very small window of opportunity which we strongly support and encourage them to use that. The opportunity may close soon," Ban said in Geneva.


The government and opposition have both edged away in recent weeks from their previous rejection of dialogue. Foreign Minister Walid al-Moualem said on Monday the government would even talk to armed rebels and opposition coalition leader Moaz Alkhatib has said he is ready to meet Assad's representatives.


But Syrian officials say any serious talks must be on Syrian soil under state control, and have shown no readiness to discuss Assad's departure - the central demand of the opposition. For rebel fighters, who do not answer to exiled civilian opposition leaders, Assad's exit is a precondition for any negotiations.


"I continue to urge the Syrian parties to find their way to the negotiating table. The horrors of the last months and years prove beyond doubt: the military solution in Syria is leading to the dissolution of Syria," Ban said.


He also called on the U.N. Security Council, paralyzed by a standoff between the United States and European allies on one side, pushing for U.N. action against Assad, and Russia and China, who have backed Assad, to unite and address the crisis.


Moscow criticized Thursday's meeting in Rome of largely anti-Assad Western and Arab states for taking positions and steps which "directly encourage extremists" to topple the government by force.


But the Kremlin also said presidents Vladimir Putin and Barack Obama had told their foreign ministers to keep in close touch and seek new initiatives to end Syria's civil war.


U.S. Secretary of State John Kerry said on Thursday Washington would provide non-lethal aid including medical supplies and food to rebel fighters, as well as $60 million to help the civilian opposition provide services including security, education and sanitation.


The European Union said it had amended sanctions on Syria to allow the supply of armored vehicles, non-lethal military equipment and technical aid.


The steps still fell well short of what rebels are looking for - more arms, and prompted the opposition to postpone a Saturday meeting where they had been due to choose a prime minister to head the administration of rebel-held territory.


Alkhatib said he was tired of hearing Western concerns over the growing role of Islamists in the Syrian rebel ranks - one of the main obstacles to greater military support, saying it paled into insignificance alongside the prolonged civilian suffering.


"Many sides...focus (more) on the length of the rebel fighter's beard than they do on the blood of the children being killed," he said, standing next to Kerry after their meeting.


(Additional reporting by Stephanie Nebehay in Geneva and Alissa de Carbonnel in Moscow; Editing by Mark Heinrich)



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Wall Street ends flat after late fade; S&P up for fourth month

NEW YORK (Reuters) - Stocks ended flat on Thursday, giving up modest gains late in the session, denying the Dow a chance to inch closer to all-time highs.


The S&P 500 still managed to close out February with a fourth straight month of gains. JC Penney Co Inc was the day's biggest loser, falling 17 percent to $17.57 after the department store operator reported a steep drop in sales.


The U.S. economy grew slightly in the fourth quarter, a turnaround from an earlier estimate showing contraction, and a drop in new claims for unemployment benefits last week added to a batch of data suggesting the economy continues its sluggish improvement.


The Dow was within striking distance of its record high after a year-to-date advance of more than 7 percent. The Dow's record closing high, set on October 9, 2007, stands at 14,164.53, while the Dow's intraday record high, set on October 11, 2007, stands at 14,198.10.


The Dow Jones Transportation Average <.djt>, seen as a bet on future growth, is up 12.9 percent this year, and the 20-stock index hit a record intraday high earlier on Thursday.


"To push through to new highs, you would have to see consistent positive economic data in the U.S. and have Europe stabilize - those are two pretty big requirements," said Jeff Morris, head of U.S. equities at Standard Life Investments in Boston.


"It wouldn't surprise me to see us bounce around as we have the past couple of weeks," Morris added.


Volume was low for most of the session until quarterly index-rebalancing activity hit the tape at the very close of trading.


After a strong January with gains of more than 5 percent, both the Dow and the S&P 500 found gains tougher to come by in February. Minutes from the Federal Reserve's January meeting sparked concerns that the central bank may pull back on its stimulus measures sooner than expected, while looming U.S. budget cuts and turbulent Italian elections tempered investors' aggressiveness.


But concerns about Fed policy were eased by testimony from Fed Chairman Ben Bernanke before a congressional committee earlier this week, as he defended the policy of buying bonds to keep interest rates low to boost growth, despite worries some have about possible inflation.


The Dow Jones industrial average <.dji> shed 20.88 points, or 0.15 percent, to 14,054.49 at the close. The Standard & Poor's 500 Index <.spx> lost 1.31 points, or 0.09 percent, to 1,514.68. The Nasdaq Composite Index <.ixic> fell 2.07 points, or 0.07 percent, to end at 3,160.19.


For the month, the Dow rose 1.4 percent, the S&P 500 gained 1.1 percent and the Nasdaq advanced 0.6 percent.


Limited Brands and Netflix ranked among the best-performing consumer stocks. Shares of Limited Brands, the parent of retailers Victoria's Secret and Bath & Body Works, gained 2.3 percent to $45.52. The stock of video streaming service Netflix climbed 2 percent to $$188.08.


In contrast, shares of Groupon Inc fell on weak revenue, with the daily deals company's tumbling 24.3 percent to $4.53.


Cablevision slumped 9.6 percent to $13.99 after the cable provider took a $100 million hit on costs related to Superstorm Sandy and posted deeper video customer losses than expected.


On a positive note, Mylan Inc gained 3.6 percent to $29.61 after the generic drugmaker posted a 25 percent rise in fourth-quarter profit and said it will buy a unit of India's Strides Arcolab Ltd.


Investors were keeping an eye on the debate in Washington over U.S. government budget cuts that will take effect starting Friday if lawmakers fail to reach agreement on spending and taxes. President Barack Obama and Republican congressional leaders arranged last-ditch talks to prevent the cuts, but expectations were low that any deal would emerge.


Volume was modest with about 6.81 billion shares traded on the New York Stock Exchange, NYSE MKT and Nasdaq, slightly above the daily average of 6.46 billion.


Advancing stocks slightly outnumbered declining ones on the NYSE by 1,518 to 1,446. On the Nasdaq, the decliners had a slight edge, with 1,247 shares falling and 1,201 stocks rising.


(Reporting by Chuck Mikolajczak; Editing by Jan Paschal)



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STORY HIGHLIGHTS


  • Timothy Stanley: The church that Benedict XVI leaves is beset by problems new pope must face

  • New pope must "rebrand" church, move beyond travails, reinvigorate Catholicism, he says

  • Stanley says fundamentals can't change, but pope can reconsider celibacy rule

  • Church should deal openly with sex abuse scandal, maintain doctrinal authority, he says




Editor's note: Timothy Stanley is a historian at Oxford University and blogs for Britain's The Daily Telegraph. He is the author of "The Crusader: The Life and Times of Pat Buchanan."


(CNN) -- Pope Benedict XVI gave an emotional farewell in St. Peter's Square on Wednesday. The moment said a lot about his papacy. On the one hand, the square was packed with an estimated 150,000 enthusiastic Catholics eager to show him love and respect. On the other hand, the pope's remarks conceded that his papacy was often a troubled one: "There were moments," he said, "as there were throughout the history of the church, when the seas were rough and the wind blew against us and it seemed that the Lord was sleeping."


The church that Benedict will no longer lead is indeed beset with problems -- its legacy of child sexual abuse, declining presence in the West, reputation for anachronism and, most recently, embarrassing allegations of a gay sex scandal in the hierarchy. The next pope is going to have to move the church beyond these travails to reinvigorate Catholicism for the 21st century. To borrow a much abused marketing term, he is going to have to subject it to a rebranding.



Timothy Stanley

Timothy Stanley



Benedict was right to qualify his remarks about the present troubles by noting that the church has had many such moments before. It has survived being split in two (the schism of 1054), having two competing popes (the Great Schism of 1378 to 1417) and outright heresy (the Reformation of the 16th century).


It has twice confronted and found compromise with the tide of modernity -- the First Vatican Council confronted liberalism in 1869-1870 and the Second Vatican Council accommodated socialism and secularism in 1962-1965. Despite the tiredness or unfashionability that can come with old age, the church has always managed to find enthusiastic converts. Contrary to popular perceptions, Catholicism continues to add followers and priests and is growing fastest in the developing world. Sixteen percent of the world's Catholics now live in Africa.


So the next pope will have no reason to panic. Neither will he have any reason to mess with church fundamentals. Indeed, he cannot do this -- Catholic doctrine is a complex web and removing one strand of belief (by changing strictures against abortion, divorce, women priests, for example) would threaten the entire structure.


Opinion: Next pope must tackle child sex abuse


One belief justifies another (the church's attitude toward contraception flows from its understanding of what life is and God's role in it) and conceding that the church has been wrong on something in the past opens the door to reassessing its entire theology -- if the church was wrong about the gender of priests, is it wrong about the Immaculate Conception of the Virgin Mary or transubstantiation, the literal, not symbolic, transformation of bread and wine into the physical presence of Christ?



Interestingly, the one area where theology is governed by law rather than doctrine -- and so is theoretically open for debate -- is priestly celibacy. That's why some are floating it as a must-see reform for the next pope.


If the pope cannot get depressed and cannot rewrite the Catechism, he can at least rebrand -- in the purest sense of the word.


News: Was he the right man for the job?


When you rebrand a product, you don't change the content, just the packaging. The Catholic Church needs a pope who will communicate timeless messages in a new way. A good start would be reforming the machinery of the church, known as the Curia. The press office needs a total overhaul (incredibly, it still closes for a siesta at lunch), and the church needs to drop its heavy reliance upon the Italian language (when Benedict visited Poland, he spoke in Italian rather than the more widely used English or German).






Crucially, the personnel and outlook desperately need to be internationalized, to shift from a Eurocentric point of view to one that feels more embedded in the Americas, Africa and Asia. An obvious step toward that would be the appointment of a pope from somewhere other than Italy -- Ghanaian Peter Turkson and Nigerian Francis Arinze are two obvious contenders. The conservative theology of Turkson is a great example of how a rebrand wouldn't necessarily mean compromising the faith; liberals might cheer his ethnicity but despise his conservatism on matters sexual.


Opinion: Benedict a pope aware of his flaws


Whoever makes it to the Holy See, his priority must be to bring a sense of order to chaos and make it clear that the church is getting to grips with its problems. As Jeff Anderson writes, he must deal honestly and openly with the problem of child abuse -- naming names and welcoming independent investigators. He must travel and engage with different faiths. He must articulate truths in language that doesn't turn people off. He must make it clear that the church is open and welcoming to women. He must continue Benedict's good work in encouraging beauty and prayer in liturgy.


All of this can be done while renewing orthodoxy rather than rejecting it -- preserving the timeless authority of church doctrine. The experience of the early years of John Paul II's pontificate proves that energy and charisma can revitalize the church without surrendering entirely to modern thinking.


Finally, we must thank Benedict for making this rebranding possible. By stepping aside early, he has given Catholics a chance to prepare thoughtfully and carefully for the future. It was a humble act that might prove his greatest legacy to the church that he so dutifully served.


Follow us on Twitter @CNNOpinion.


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The opinions expressed in this commentary are solely those of Timothy Stanley.






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