S&P 500 gains for fourth session on light volume
















NEW YORK (Reuters) – Stocks finished modestly higher on Wednesday, with the S&P 500 up for a fourth session, although volume was one of the year’s lowest on the day ahead of the Thanksgiving holiday.


Investors welcomed news that a ceasefire was declared to end the flare-up in violence between Israel and the Palestinians, though the lack of a deal to release emergency aid for Greece limited the market’s advance.













Investors also remained anxious about the mandatory tax increases and spending cuts that would go into effect in the new year if a deal is not reached to prevent it – known as the “fiscal cliff” – though policymakers are not expected to get back to negotiations until after Thursday’s Thanksgiving holiday.


About 4.76 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with year-to-date daily average volume of 6.5 billion shares. On Thursday, the U.S. stock market will be closed for the Thanksgiving holiday, and on Friday, it will close early at 1 p.m. (1800 GMT).


“Usually on patriotic holidays, which I think Thanksgiving is one, we often see a rally on a light volume. So I wouldn’t be surprised if we see that on Friday, if there is no major news,” said J.J. Kinahan, chief derivatives strategist at TD Ameritrade in Chicago.


“So far this week, we have heard good news in terms of (the) fiscal cliff. Both sides seem to be playing nice, but we will start to see big day-to-day swings (in the market) from next week, when we get more details.”


Greece’s international lenders failed again to reach a deal to release emergency aid to the debt-saddled country. Lenders will try again next Monday, but Germany signaled that significant divisions remain.


A truce between Israel and Hamas gave stocks some support around midday after Egypt announced a ceasefire would come into effect later in the day.


Fears that the fiscal cliff discussions in Washington could be drawn out or yield no resolution have been at the forefront of investors’ minds in recent weeks. Combined with concerns about the euro zone’s continued debt problems, the worries had driven a sell-off that has taken more than 5 percent off the S&P 500 since Election Day in early November.


Positive comments from U.S. politicians that they will work to find common ground have helped the S&P 500 recoup some of that loss in recent sessions.


The Dow Jones industrial average <.DJI> gained 48.38 points, or 0.38 percent, to end at 12,836.89. The Standard & Poor’s 500 Index <.SPX> added 3.22 points, or 0.23 percent, to finish at 1,391.03. The Nasdaq Composite Index <.IXIC> rose 9.87 points, or 0.34 percent, to close at 2,926.55.


St Jude Medical shares tumbled 12.2 percent to $ 31.37 after an inspection report from health regulators raised new safety concerns about one of the company’s leads that are used with implantable defibrillators, analysts said.


A modest gain in International Business Machines helped the Dow outperform the other indexes. IBM rose 0.6 percent to $ 190.29.


Dow component Hewlett-Packard Co climbed 2 percent to close on Wednesday at $ 11.94, recouping a small slice of Tuesday’s loss, when the stock slid to a 10-year low after the computer and printer maker reported a $ 5 billion charge related to “accounting improprieties” at Autonomy, a British software company that HP bought last year. At least two brokerages have cut their ratings on HP’s stock, while analysts at several firms lowered their price targets.


Salesforce.com Inc jumped 8.8 percent to $ 158.78 a day after the business software provider reported results that beat Wall Street‘s expectations for the third quarter and maintained its outlook for the rest of the year.


But Deere & Co dragged on the S&P 500 after the world’s largest farm equipment maker reported a weaker-than-expected quarterly profit. Its stock lost 3.7 percent to $ 82.83.


The market did not derive much direction from the day’s economic data, with initial jobless claims falling last week, as expected.


Other data showed manufacturing picked up at its quickest pace in five months in November, while the Thomson Reuters/University of Michigan’s final reading for November showed the consumer sentiment index improved only slightly from the previous month.


The focus will likely turn to retailers on Friday as analysts try to assess how strong the holiday shopping season will be this year, according to Kurt Brunner, portfolio manager at Swarthmore Group in Philadelphia.


The S&P 500 retail sector index <.SPXRT> was up 0.6 percent.


Holiday shopping traditionally kicks off the day after Thanksgiving, known as Black Friday, as stores offer deals and discounts to lure consumers.


Advancers beat decliners by a ratio of about 2 to 1 on both the New York Stock Exchange and the Nasdaq.


(Editing by Jan Paschal)


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Greek PM presses for deal on loan
















ATHENS, Greece (AP) — Greece has reacted with dismay to the European Union‘s failure to agree to release vital rescue loan funds for the debt-ridden country, with the prime minister warning it was not just Greece’s future that hangs in the balance.


The delay prolongs uncertainty over the future of Greece, which faces a messy default that would threaten the entire euro currency used by 17 EU nations.













Prime Minister Antonis Samaras stressed that Greece has done what its creditors from the EU and International Monetary Fund required. “Our partners, along with the IMF, also must do what they have committed to doing,” he said.


He said that “it is not just the future of our country, but the stability of the entire eurozone” that depend on the success of negotiations in coming days.


Europe News Headlines – Yahoo! News



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Republic Wireless Now Offering $19/Month Unlimited Smartphone Service to All
















Prepaid wireless carrier Republic Wireless has been offering its $ 19 per month, unlimited everything, prepaid smartphone plan since about this time last year. At the time, though, there were a few catches; you had to buy a very low-end smartphone from them, you had to use its Hybrid Calling technology for most of your calls, and you could only get in if you were lucky enough to be accepted to an exclusive “beta wave.”


Since then, Republic Wireless has upgraded to the slightly more modern Motorola Defy XT as its flagship smartphone model, and has changed to allow unlimited calling, texting, and data over Sprint’s nationwide network, for the same $ 19/month price. Now the North Carolina-based startup is dropping its last restriction; the doors are open for anyone to preorder up to four Defy XT phones, “and they’ll begin shipping in mid-December.”













​The phone


The Motorola Defy XT is designed to be dustproof and waterproof, with rubber bumpers covering each port and an unlocking switch keeping the back cover sealed. Its specs are decidedly last year’s; powered by a 1 GHz, single-core processor, it often shows Kindle Fire-style lag when swiping between home screens on its 3.7 inch display. It runs 2010′s Android 2.3 Gingerbread, with no OS upgrades announced, and it doesn’t have much room to store games and apps, although it comes with a 2 GB microSD card.


​The service


Republic Wireless’ low monthly fee is partly made possible by its Hybrid Calling technology, which is basically an app that loads on startup and lets you make calls and send texts over Wi-Fi. Call quality is generally good, although it depends on how good your Wi-Fi connection is and how many people are streaming video over it while you’re trying to make your call. You can switch off Hybrid Calling by disabling Wi-Fi, if you want to make calls over Sprint’s network instead; this happens automatically if your Wi-Fi signal drops, which has the effect of hanging up your call.


​The support


“Here at Republic,” its Support page explains, “we believe in helping each other out as much as possible.” What this translates to is that there’s no number to call for questions or tech support. Instead, customers are directed to a community wiki and forums, for answers to their issues. If all else fails, you can contact Republic using an online form, and receive a response within 24 hours.


​The price


It costs close to $ 300 to begin using Republic Wireless’ service; $ 249 for the phone, a $ 10 startup fee, and $ 19 for your first monthly fee, before any applicable taxes. That $ 19 is charged once your phone ships, and if Republic’s difficulty keeping up with orders for its first beta waves is any indication, just because the phones “begin shipping in mid-December” doesn’t necessarily mean that that’s when you’ll get yours.


Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.
Linux/Open Source News Headlines – Yahoo! News



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Singer Fiona Apple cancels tour dates to be with ailing dog
















LOS ANGELES (Reuters) – Grammy award-winning singer Fiona Apple said in a handwritten letter posted on her website on Tuesday that she has canceled upcoming tour dates in North and South America to be with her ailing dog.


Apple, who vowed to make up the concerts, called off three shows in Brazil between November 27 and 30, a Buenos Aires festival appearance on December 1-2 and a December 9 performance in Mexico City, according to her record label, Epic.













The “Criminal” singer and pianist said her 13-year-old pit bull Janet has been suffering from a tumor in her chest among other ailments and appears to be dying.


“She’s my best friend and my mother and my daughter, my benefactor and she’s the one who taught me what love is,” Apple wrote in the four-page letter she penned last week but did not release until Tuesday. “I can’t come to South America. Not now.”


Apple, 35, said that she wants to appreciate the final days with her dog. “I will not be the woman who puts her career ahead of love and friendship,” Apple wrote.


The singer-songwriter, who is touring in support of “The Idler Wheel … ” album, was arrested in September in Texas and charged with felony drug possession for having four grams of hashish, a form of cannabis.


(Reporting By Eric Kelsey; editing by Patricia Reaney and Todd Eastham)


Music News Headlines – Yahoo! News



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Violence flares as Clinton seeks Gaza truce

GAZA/JERUSALEM (Reuters) - U.S. Secretary of State Hillary Clinton on Wednesday pursued a Gaza truce, with Israel and Hamas still at odds over key terms, as Israeli air strikes shook the enclave and Palestinian rockets hit across the border.


After talks in Ramallah with Palestinian President Mahmoud Abbas and a possible second meeting with Israeli Prime Minister Benjamin Netanyahu, whom she saw late on Tuesday, Clinton planned to fly to Egypt, the main broker in efforts to end eight days of fighting and avert a possible Israeli ground offensive.


In Tel Aviv, at least 10 people were wounded when a bus was blown up in what the government called a terrorist attack. The incident, which touched off celebratory gunfire from militants in Gaza, threatened to complicate efforts to reach a ceasefire.


Israel's best-selling Yedioth Ahronoth newspaper said an emerging outline of a ceasefire agreement called for Egypt to announce a 72-hour ceasefire followed by further talks on long-term understandings.


Under the proposed document, which the newspaper said neither party would be required to sign, Israel would hold its fire, end attacks against top militants and promise to examine ways to ease its blockade of the enclave.


Hamas, the report said, would pledge not to strike any Israeli target and ensure other Palestinian factions in the Gaza Strip also stop their attacks.


An Israeli political source said differences holding up a deal centered on a Hamas demand to lift the Gaza blockade completely and the kind of activity that would be allowed along the frontier, where Israeli troops often fire into the enclave to keep Palestinians away from an area near a border fence.


Hamas official Ezzat al-Rishq said the main stumbling block was "the temporary timeframe for a ceasefire that the Israelis want us to agree to".


The London-based Al Hayat newspaper, citing sources in Hamas and Islamic Jihad, said Israel wanted a 90-day period to determine "good intentions" before discussing Palestinian demands, a position the report said the groups have rejected.


Rishq said a short-term truce, whose proposed duration he did not disclose, "would only buy (Israel) time" until a general election in January and "we would have accomplished nothing in the way of a long-term truce".


Hamas sources said the group was also demanding control over Gaza's Rafah borders with Egypt, so that Palestinians could cross easily and Israeli guarantees to stop assassinating Hamas leaders.


Israel, one of the Hamas sources said, wanted a commitment from the group to stop smuggling through tunnels that run into Gaza under the Egyptian border. The tunnel network is a conduit for weapons and commercial goods.


Clinton, who flew to the region on Tuesday from an Asian summit, said in her public remarks with Netanyahu that it was "essential to de-escalate the situation".


"The rocket attacks from terrorist organizations inside Gaza on Israeli cities and towns must end and a broader calm restored," she said


Netanyahu told Clinton he wanted a "long-term" solution. Failing that, Netanyahu made clear, that he stood ready to step up the military campaign to silence Hamas' rockets.


"A band-aid solution will only cause another round of violence," said Ofir Gendelman, a Netanyahu spokesman.


While diplomatic efforts continued, Israel struck more than 100 targets in Gaza overnight, killing a Hamas gunman and destroying a cluster of Hamas government buildings.


Palestinians militants fired 31 rockets at Israel, causing no casualties, and Israel's Iron Dome interceptor system shot down 14 of them, police said.


Israel has carried out more than 1,500 strikes since the offensive began. Medical officials in Gaza said 139 Palestinians, most of them civilians, including 34 children, have been killed. Nearly 1,400 rockets have been fired into Israel, killing four civilians and a soldier, the Israeli military said.


CLINTON MEETS PALESTINIAN PRESIDENT


In the West Bank city of Ramallah, Clinton held talks with Palestinian President Abbas, whose bid to upgrade the Palestinians' status at the United Nations, in the absence of peace negotiations with Israel, is opposed by Washington.


"Secretary Clinton informed the president that the U.S. administration is exerting every possible effort to reach an immediate ceasefire and the president expressed his full support for this endeavor," said Palestinian chief negotiator Saeb Erekat.


"Once the Israelis accept to stop their bombardments, their assassinations, there will be a comprehensive ceasefire sustained from all parties," Erekat said.


A Palestinian official with knowledge of Cairo's mediation told Reuters that Egyptian intelligence officials would hold further discussions on Wednesday with leaders of Hamas and the Islamic Jihad group.


"There may be a response from Israel that Egyptian mediators want to present to Hamas and Islamic Jihad leaders," the official said. "Let's be hopeful it would be something Palestinian factions can accept."


Like most Western powers, Washington shuns Hamas as an obstacle to peace and has blamed it for the Gaza conflagration. A U.N. Security Council statement condemning the conflict was blocked on Tuesday by the United States, which complained that it "failed to address the root cause," the Palestinian rockets.


Hamas for its part is exploring the opportunities that last year's Arab Spring has given it to enjoy favor from new Islamist governments, and from Sunni Gulf powers keen to woo it away from Shi'ite Iran.


It may count on some sympathy from Egypt's president, Mohamed Mursi, though that country's first freely elected leader, whose Muslim Brotherhood inspired Hamas' founders, has been careful to stick by the 1979 peace deal with Israel struck by Cairo's former military rulers.


In Jerusalem, Clinton assured Netanyahu of "rock-solid" U.S. support for Israel's security, and praised Mursi's "personal leadership and Egypt's efforts thus far" to end the Gaza conflict and promote regional stability.


"As a regional leader and neighbor, Egypt has the opportunity and responsibility to continue playing a crucial and constructive role in this process. I will carry this message to Cairo tomorrow (Wednesday)," she said.


Along the Gaza border, Israeli tanks, artillery and infantry remained poised for a possible ground offensive in the densely populated enclave of 1.7 million Palestinians.


But an invasion, likely to entail heavy casualties, would be a major political risk for Netanyahu, who is currently favored to win the upcoming Israeli election. More than 1,400 Palestinians were killed in Israel's three-week war in the Gaza Strip in the winter of 2008-9, prompting international criticism of Israel.


(Additional reporting by Cairo bureau; Writing by Jeffrey Heller; Editing by Giles Elgood)


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Pharmacy owners had no hand in meningitis outbreak: lawyers
















BOSTON (Reuters) – Lawyers for New England Compounding Center‘s owners told a federal judge on Tuesday there is no evidence that any of them directly participated in the events that led to a deadly U.S. meningitis outbreak.


“Due process should not be washed away in a sea of newspaper articles and conjecture,” defense attorney Alan Winchester said.













Winchester made his remarks during a two-hour courtroom battle in Boston, where defense lawyers for the family that owns the specialty pharmacy sought to put distance between their clients and an outbreak that has killed 34 and injured nearly 500 people.


Barry Cadden, part owner and NECC‘s chief pharmacist, had not compounded any drugs at the pharmacy for several years before the meningitis outbreak, defense lawyer Bruce Singal said. Cadden’s wife, Lisa Cadden, also a part owner, has not worked as a pharmacist for seven years, Singal told the court.


The defense lawyers also argued to block a motion by meningitis victims to freeze the assets of NECC and its owners. U.S. District Judge Dennis Saylor took the matter under advisement and suggested a ruling could come by next week.


But Thomas Sobol, a lawyer for plaintiffs, disagreed with the assertions of the defense lawyers. He said Lisa Cadden, for example, cannot claim to be a soccer mom and then be one of the key people answering the questions of investigators about NECC’s operations.


“This woman shouldn’t be entitled to sell her house, her cars and dissipate her assets,” Sobol argued. He wants the judge to freeze the assets of NECC and its owners so they are not concealed or put under the protection of bankruptcy or a receivership.


Sobol said his motion would not preclude the Caddens or the other owners of NECC to buy a Thanksgiving turkey or gas for their cars. But he did ask the judge not to let the Caddens sell their luxury home in Rhode Island and then put the money in an account in the Cayman Islands.


Defense lawyers said there is no evidence that NECC’s owners have tried to conceal anything regarding their assets.


Defense lawyer Daniel Rabinovitz said there’s nothing to show that Greg Conigliaro, the recycling entrepreneur and co-owner who helped his brother-in-law, Barry Cadden, launch NECC, participated in any conduct related to the outbreak. U.S. authorities say NECC shipped thousands of vials of fungus-tainted methylprednisolone acetate to medical facilities throughout the United States.


At one point during the hearing, Judge Saylor talked about how a passive shareholder cannot be held liable for even the most outrageous acts of a corporation.


Singal suggested the outbreak was an isolated incident and told the judge how NECC had been compounding methylprednisolone acetate, which is typically used to ease back pain, for a number of years without incident. He said half a million vials had been shipped without incident over a period of several years.


But Sobol said that was not true, because authorities investigated an incident involving NECC and the drug several years ago.


“My clients are under legal siege,” Singal said, referring to the number of government agencies investigating NECC. “Almost anybody you can think of, except for NASA, has showed up so far.”


(Reporting By Tim McLaughlin; Editing by Maureen Bavdek and Dan Grebler)


Medications/Drugs News Headlines – Yahoo! News



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U.S. fiscal impact of great concern to Canada: Canada’s Harper
















TORONTO (Reuters) – Any fiscal problems that would significantly slow the U.S. economy would be of great concern to Canada, Canadian Prime Minister Stephen Harper said on Monday.


The United States needed a credible medium-term fiscal plan, Harper said at a business forum in Ottawa, adding that he was following the U.S. fiscal debate with “great interest.”













(Reporting by Solarina Ho)


Canada News Headlines – Yahoo! News



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HTC “happy” with Apple settlement, slams media estimates
















TOKYO (Reuters) – Taiwan’s HTC Corp is happy with its patent settlement with Apple Inc, but regards media reports on details of the licensing agreement as “outrageous”, chief executive Peter Chou told reporters on Tuesday.


HTC and Apple announced a global patent settlement and a 10-year licensing agreement this month after a bruising patent war between the two smartphone makers.













The companies did not disclose details of the settlement or the licensing agreement, but HTC said it will not change its fourth-quarter guidance.


Responding to a question about media reports that HTC will pay Apple $ 6 to $ 8 per Android phone as part of the patent settlement, Chou said it was an outrageous estimate.


“I think that these estimates are baseless and very, very wrong. It is a outrageous number, but I’m not going to comment anything on a specific number. I believe we have a very, very happy settlement and a good ending,” said Chou at a KDDI Corp product launch in Tokyo.


Apple sued the Taiwanese handset maker in 2010, its first major legal salvo against a manufacturer using Google’s Android operating system. Since the suit, a patent war has engulfed competitors including Samsung Electronics Co Ltd and Google’s Motorola Mobility unit.


(Reporting by Mari Saito; Editing by Michael Watson and Muralikumar Anantharaman)


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Why Oscar’s “Simple” Date-Change Is a Ticking Time Bomb
















LOS ANGELES (TheWrap.com) – The press release didn’t look as if it contained big news.


“Key Dates Announced for the 85th Academy Awards,” read the headline on the September 18 announcement, which came significantly later than usual for the Academy and contained one seemingly innocuous line:













“In an effort to provide members and the public a longer period of time to see the nominated films, the Academy will reveal the 85th Academy Awards nominations on January 10, five days earlier than previously announced.”


But that little change – those five days, which moved the nominations from what was already an unusually early slot to the Thursday before the Golden Globes – has shaken all things Oscar, essentially detonating a time bomb across the Academy Awards landscape.


As advertised, the move will give members of the Academy and prospective viewers extra time to see the 35 or so features that will be nominated (plus another 10 documentaries and foreign-language films) – but it’ll give them significantly less time to see the 250 to 300 films that are eligible to be nominated.


“As an Academy member, I’m not happy about it,” said one voter, who was typical of those TheWrap has spoken to. “It’s short-sighted and unfair to members, and they’re limiting the number of movies that might get nominated because members won’t see as many. And as a marketer, it hampers you in every way and forces you to flood people with emails and mailings and screenings and screeners to get all your stuff out by January 1.”


Grumbling, moaning and the occasional gnashing of teeth over the compressed timeline has been almost constant since the announcement. One commonly heard phrase is, “What were they thinking?” Another is, “I know what they were thinking, and it has nothing to do with what they say they were thinking.”


To this latter camp, which includes both outsiders and AMPAS members, the clear intent of the move was to hurt the Golden Globes, the tacky show whose importance on the awards calendar has always rankled the Academy.


The governors were said to be determined to make the Globes (and its presenting body, the much-maligned Hollywood Foreign Press Association) irrelevant by announcing Oscar nominations before the Globes even happen … as if that would stop people from tuning in or persuade NBC, Dick Clark Productions or the HFPA to pull the plug on a multimillion-dollar cash cow that they would no doubt move to Thanksgiving weekend before they’d ever consider giving it up.


Yes, the move will put the Globes in the awkward position of taking place at a point where trade ads are more likely to proudly trumpet “six Oscar nominations!” than “Golden Globe winner!” And by the time Academy members are able to vote, the Globes results will most likely forgotten by anybody casting an Oscar ballot.


The move won’t impact the Globes ratings, but it could conceivably reduce attendance at the show: If a star hoping to use a fabulous Globes acceptance speech to boost an Oscar candidacy winds up not being nominated, will he or she still feel inclined to show up for the HFPA’s dog-and-pony show?


Among other awards shows, the real casualty could be the Broadcast Film Critics Association‘s Critics’ Choice Movie Awards, a reliable Oscar precursor that this year is scheduled to take place the evening of the day on which Oscar noms are announced.


It’s hard to imagine too many actors wanting to put on a brave face and mingle with nominated colleagues only a few hours after learning that Oscar voters have ignored them; I’m guessing the BFCA may find itself with at least a few last-minute cancellations and lame excuses.


But the move’s repercussions go far beyond other awards shows.


A voting window that ends on January 3, immediately after the Christmas/New Year’s holidays, will mean more pressure to book early screenings, more of a push to get parties and Q&As done before the holidays, and outright desperation to have screeners in voters’ hands before they head to Aspen or Hawaii for the break.


And for films released in December – a typical Oscar slot that has been utilized quite effectively in the past by the likes of “Million Dollar Baby” and “Shakespeare in Love” – the new calendar could be a killer: With nominating ballots due so soon after the holidays, films had better be must-sees if they want to get voters to check them out before casting their ballots.


Obviously, that won’t hurt the December releases “Django Unchained,” “Zero Dark Thirty,” “Les Miserables” and “The Hobbit” – those are no-brainers for any Academy member who wants to be the slightest bit thorough. But what about a lower-profile film like Michael Haneke’s “Amour,” which Sony Classics is releasing on December 19?


The Cannes Palme d’Or winner is strong enough to escape the foreign-language category and become a viable Best Picture contender if enough members see it, but SPC may have to push awfully hard to get it in front of voters already facing a year-end crunch.


The move also puts a hit on the Palm Springs International Film Festival, whose annual Awards Gala, which typically honors an array of Oscar hopefuls, now falls three days after polls close.


And the late-January Santa Barbara International Film Festival now sits in the 29-day no-man’s-land between the nominations and the opening of final voting, long enough after nominations that some potential honorees might want to wait for the Academy’s verdict before committing to an SBIFF tribute.


Still, it’ll make things easier for Oscar-watchers who also want to go to the Sundance Film Festival; rather than noms coming in the middle of that fest, they will happen two weeks before Park City kicks off.


And yes, the new calendar will, as advertised, give viewers and voters more time to watch the nominated films.


The same voter who slammed the move as unfair for members and terrible for marketers did concede one thing: “From the exhibition point of view, I think it’s a good thing. You get an additional two weeks in theaters with the films that have been nominated, and we all know that’s where the money is made.”


Movies News Headlines – Yahoo! News



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Clinton heads to Mideast amid Gaza crisis

GAZA CITY, Gaza Strip (AP) — Efforts to end a week-old convulsion of Israeli-Palestinian violence drew in the world's top diplomats on Tuesday, with President Barack Obama dispatching his secretary of state to the region on an emergency mission and the U.N. chief appealing from Cairo for an immediate cease-fire.

Israel and Gaza's militant Hamas rulers have staked tough, hard-to-bridge positions, and the gaps keep alive the threat of an Israeli ground invasion. On Tuesday, grieving Gazans were burying militants and civilians killed in ongoing Israeli airstrikes, and barrages of rockets from Gaza sent terrified Israelis scurrying to take cover.

From Egypt, U.N. chief Ban Ki-moon said he came to the region because of the "alarming situation."

"This must stop, immediate steps are needed to avoid further escalation, including a ground operation," Ban said. "Both sides must hold fire immediately ... Further escalation of the situation could put the entire region at risk."

U.S. Secretary of State Hillary Rodham Clinton is to depart for the Mideast on Tuesday from Cambodia, where she had accompanied Obama on a visit. Clinton is to meet with Israeli Prime Minister Benjamin Netanyahu in Jerusalem, Palestinian President Mahmoud Abbas in the West Bank and Egyptian leaders in Cairo, according to U.S. and Palestinian officials.

The U.S. considers Hamas, which has killed hundreds of Israelis in suicide and other attacks, to be a terror group and does not meet with its officials. The Obama administration blames Hamas for the latest eruption of violence and says Israel has the right to defend itself. At the same time, it has warned against a ground invasion, saying it could send casualties spiraling.

By Tuesday, civilians accounted for 54 of the 113 Palestinians killed since Israel began an air onslaught that has so far included nearly 1,500 strikes. Some 840 people have been wounded, including 225 children, Gaza health officials said.

Three Israeli civilians have also been killed and dozens wounded since the fighting began last week, the numbers possibly kept down by a rocket-defense system that Israel developed with U.S. funding. More than 1,000 rockets have been fired at Israel this week, the military said.

Israeli Prime Minister Benjamin Netanyahu said Tuesday that Israel was exploring a diplomatic solution, but wouldn't balk at a broader military operation.

"I prefer a diplomatic solution," Netanyahu said in a statement after meeting with Germany's foreign minister, Guido Westerwelle, who is also in the region trying to advance peace efforts. "But if the fire continues, we will be forced to take broader measures and will not hesitate to do so."

Earlier in the day, Westerwelle said a truce must be urgently pursued, "but of course, there is one precondition for everything else, and this is a stop of the missile attacks against Israel."

Turkey's foreign minister and a delegation of Arab League foreign ministers were to arrive in Gaza later Tuesday on a separate truce mission.

The conflict erupted last week, when a resurgence in rocket fire from Gaza set off the Israeli offensive, launched with the assassination of the Hamas military chief and followed by hundreds of airstrikes on militants' underground rocket launchers and weapons' stores.

The onslaught turned deadlier over the weekend, as airstrikes began targeting the homes of suspected Hamas activists, leading to a spike in civilian casualties. Israel sent warnings in some cases, witnesses said, but in other instances missiles hit suddenly, burying residents under the rubble of their homes.

Hamas is deeply rooted in densely populated Gaza, and the movement's activists live in the midst of ordinary Gazans. Israel says militants are using civilians as human shields, both for their own safety and to launch rocket strikes from residential neighborhoods.

In one case, a senior member of the military wing of Islamic Jihad rented a small apartment in a 15-story high-rise of offices and news outlets. The militant, Ramez Harb, was killed Monday in a rocket strike that badly damaged several floors in the building.

One of the journalists working in the building said he and others were furious that Harb had apparently used the building as a hiding place and put others at risk. The journalist spoke on condition of anonymity because he feared repercussions from Gaza militants if he criticized their actions.

Early Tuesday, Israeli aircraft targeted another Hamas symbol of power, battering the headquarters of the bank senior Hamas officials set up to sidestep international sanctions on the militant group's rule. After Hamas violently overran Gaza in June 2007, foreign lenders stopped doing business with the militant-led Gaza government, afraid of running afoul of international terror financing laws.

The inside of the bank, which was set up by leading Hamas members and describes itself as a private enterprise, was destroyed. Abuilding supply business in the basement was damaged.

Owner Suleiman Tawil, 31, grimly surveyed the damage to his store and six company cars. "I'm not involved in politics," he said. "I'm a businessman. But the more the Israelis pressure us, the more we will support Hamas."

Fuad Hijazi and two of his toddler sons were killed Monday evening when missiles struck their one-story shack in northern Gaza, leaving a crater about two to three meters (seven to 10 feet) deep in the densely populated neighborhood. Residents said the father was not a militant.

On Tuesday morning, the boys' bodies lay next to each other on a rack in the local morgue, wrapped tightly in white burial shrouds. Their father lay in a rack below.

"We want to tell the world which is supporting the state of Israel, what this state is doing," said neighbor Rushdie Nasser. "They are supporting a state that kills children ... We want to send a message to the U.N. and the West: Enough of supporting the Zionists, who are killing children."

As part of global efforts to end the Gaza fighting, U.N. chief arrived in Cairo on Monday and was to meet with Israeli President Shimon Peres in Jerusalem on Tuesday. In Cairo, Ban said he would also travel to the West Bank to meet with Palestinian President Mahmoud Abbas. With tens of thousands of Israeli soldiers dispatched to the Gaza border, awaiting a possible order to invade, his mission was all the more urgent.

Egypt, the traditional mediator between Israel and the Arab world, has been at the center of recent diplomatic efforts involving the U.S., Turkey, Qatar and other nations.

On Monday, Egyptian intelligence officials met separately in Cairo with an Israeli envoy and with Khaled Mashaal, the top Hamas leader in exile, to try to bridge the considerable differences.

Israel demands an end to rocket fire from Gaza and a halt to weapons smuggling into Gaza through tunnels under the border with Egypt. It also wants international guarantees that Hamas will not rearm or use Egypt's Sinai region, which abuts both Gaza and southern Israel, to attack Israelis.

Hamas wants Israel to halt all attacks on Gaza and lift tight restrictions on trade and movement in and out of the territory that have been in place since Hamas seized Gaza by force in 2007. Israel has rejected such demands in the past.

Mashaal told reporters Monday that Hamas would only agree to a cease-fire if its demands are met. "We don't accept Israeli conditions because it is the aggressor," he said. "We want a cease-fire along with meeting our demands."

Israeli Foreign Ministry spokesman Yigal Palmor said Israel prefers to end this round of violence through diplomacy but insists the outcome would guarantee Israel long-term quiet along its border with Gaza.

"The declared purpose of this operation was to make rockets stop, once and for all, or at least for a very long time," he said Tuesday, without specifying a timeframe. "All instruments have their limitations. But if the diplomatic path proves itself unuseful, then the only path that will be left is the military. But we hope to explore the diplomatic path to its full extent."

Successive Israeli governments, meanwhile, have struggled to come up with an effective policy toward Hamas, which is deeply rooted in Gaza, a densely populated territory of 1.6 million.

Neither Israel's economic blockade of the territory nor bruising military strikes have cowed Gaza's Islamists, weakened their grip on the Palestinian strip their ability to fire rockets at the Jewish state.

An Israeli ground invasion would risk Israeli troop losses, and it could send the number of Palestinian civilian casualties ballooning — a toll Israel could be reluctant to risk just four years after its last invasion drew allegations of war crimes.

Still, with Israeli elections just two months away, polls show Israeli public sentiment has lined up staunchly behind the offensive Netanyahu's government has launched.

Israel and Gaza's militants have a long history of fighting, but the dynamics have changed radically since they last warred four years ago. Though their hardware is no match for the Israeli military, militants have upgraded their capabilities with weapons smuggled in from Iran and Libya, Israeli officials claim.

Only a few years ago, tens of thousands of Israelis were within rocket range. Today those numbers have swollen to 3.5 million, as the militants' improved weapons allowed the unprecedented targeting of Tel Aviv and Jerusalem this week.

Hamas, a branch of the region-wide Muslim Brotherhood, is also negotiating from a stronger position than four years ago, when Israel launched a three-week war on the militants in Gaza. At that time, Hamas was internationally isolated; now, the Muslim Brotherhood is in power in Egypt and Tunisia, and Hamas is also getting political support from Qatar and Turkey.

At home, too, the military offensive has shored up Hamas at a time when it was riven by internal divisions over its direction and the new Egyptian government's refusal to lift the blockade it imposed along with Israel after Hamas seized the territory in 2007.

This newfound backing contrasts radically with the loss of stature the Western-backed Palestinian President Mahmoud Abbas has endured as Palestinians lose faith in his ability to bring them a state through negotiations with Israel.

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Teibel reported from Jerusalem. AP writer Ibrahim Barzak contributed from Gaza City.

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