Sharks are swimming in Australia's flooded streets

Flood victims in Australia have a new danger to contend with -- sharks swimming down their streets, according to a report in The Queensland Times.Bull sharks have been observed swimming past a McDonald's restaurant, past a butcher's shop, and around other places in Goodna, a suburb of the city of Ipswich, Australia.

http://blogs.discovery.com/.a/6a00d8341bf67c53ef0148c7d48583970c-800wi

http://blogs.discovery.com/.a/6a00d8341bf67c53ef0147e1cb57be970b-pi

"Bull sharks have been in Goodna for a long time in the Bremer," confirmed Tully. "They are regularly in the Brisbane River and often swim up. I know a number of fishermen who have caught bull sharks."

To get to Goodna's main street, he said the sharks must have swam well over a mile from the river. They then crossed Evan Marginson Park and the local highway there. This would have been unthinkable during drier days, but the flood waters have made this bizarre travel route possible.

This week, Goodna was contending with over 26 feet of water in normally populated areas. As if the water, sharks, crocodiles and other threats weren't enough, a flammable gas leak caused further chaos there recently, leading to even more evacuations.

The gas leak was due to ruptured underground storage tanks at gas stations near the St. Ives shopping center. The sharks certainly weren't deterred by the leak. They were seen swimming down Williams Street, which goes right by the shopping center

Full story at Discovery News

Apple turns in record Q1: $6b profit on $26.7b revenue, 16.2m iPhones sold

Apple reported a record $6bn in quarterly profit and voiced confidence in its strategy a day after announcing that its iconic chief executive, Steve Jobs, was taking an open-ended leave of absence for undisclosed medical reasons.

Apple shares fell more than 2 per cent on Tuesday, when US trading resumed for the first time since the company had said that Mr Jobs would go on leave and quoted him saying that he hoped to return “as soon as I can”.

Apple's announcement of Steve Jobs' medical leave just one day before releasing its Q1 financial results struck us as well-planned yesterday, and here we are: if Cupertino's record $6 billion profit on a record $26.7 billion in revenue isn't enough to turn that frown -- and stock slide -- upside down, well, nothing else will. iPhone 4 sales were predictably strong through the holidays, clocking in at a record 16.2m units, or up 86 percent from last year, while Mac sales went up 23 percent to a record 4.13m and iPod sales were stronger than expected at 19.45m, a seven percent decline. As for the iPad, Apple's tablet had its second straight dominant quarter, with record sales of 7.33 million -- some 3 million more than the Mac. Apple's financial call with new acting CEO Tim Cook and CFO Peter Oppenheimer is scheduled to start at 5PM EST -- check after the break for our usual liveblog while you're listening live on Apple's site.

[engadget]

Nadal makes strong start in Australia

(CNN) -- Rafael Nadal is on track to win his fourth successive grand slam after Marcos Daniel was forced to retire during their first-round match at the Australian Open on Tuesday.

World number one Nadal had already opened up a 6-0 5-0 lead before the Brazilian suffered a knee injury after 47 minutes of the match.

Nadal, a nine-time major winner, is hoping to become the first player since Rod Laver in 1969 to win four consecutive grand slams.

"I think I played right," the 24-year-old told the ATP Tour's website ahead of his next match against American debutant Ryan Sweeting, who is ranked 116th.

"I played some good shots, some long shots. The serve can be a little bit better. That's the only point that I think I can improve."

The Australian Open should be in February!

British fifth seed Andy Murray progressed to round two after his opponent also became injured.

Murray, who was a beaten finalist in Melbourne last year, led Slovakia's Karol Beck 6-3 6-1 4-2 when the world number 101 succumbed to a shoulder problem.

The match lasted for one hour and 42 minutes before Beck withdrew, meaning the 23-year-old Murray will now face Illya Marchenko of the Ukraine who beat Spain's Ruben Ramirez Hidalgo.

"I thought it was a pretty good match," said Murray.

"Obviously you'd rather finish the match off without your opponent being hurt, but it does happen quite a lot. So you just have to move on and get yourself ready for the next round."

Juan Martin del Potro scored a victory on his return to grand-slam action as he defeated Israel's Dudi Sela 7-6 6-4 6-4.

Argentina's Del Potro, the 2009 U.S. Open champion, has not played in one of the four majors since last year's Melbourne Park tournament after struggling with a wrist injury.

"Today I played good tennis again," the former world number four said.

"But I'm really enjoying this week. I met with all the players, especially the top-10 players. They supported me when I was very bad. So now I am face to face with them I can say thank you."

Del Potro will now play the 2006 Australian Open champion Marcos Baghdatis, who beat Slovenia's Grega Zemlja 3-6 7-5 6-1 4-6 6-2.

Australia's Lleyton Hewitt and David Nalbandian of Argentina played out a five-set clash which lasted four hours and 48 minutes at the Rod Laver Arena in a rematch of the 2002 Wimbledon final.

Nalbandian eventually sealed a 3-6 6-4 3-6 7-6 9-7 victory, with the final set lasting 93 minutes, as he avenged that defeat and also his reverse to hewitt in the 2005 Austalian Open quarterfinals.

Lithuania's Ricardas Berankis will be Nalbandian's second-round opponent after he beat another Australian Marinko Matosevic 6-4 6-2 7-5.

France's Jo-Wilfried Tsonga came from two sets down to claim a 4-6 2-6 6-2 6-3 6-4 triumph over Philipp Petzschner of Germany.

Tsonga, seeded 13th, eventually won the match after 194 minutes to set up a tie against Andreas Seppi after the Italian defeated Arnaud Clement.

America's John Isner hit 26 aces on his way to a 6-3 7-6 6-3 win over Florent Serra of France.

Isner is set to face Radek Stepanek of the Czech Republic in the second round, who advanced at the expense of Deni Gremelmayr.

51 dead from flooding in the Philippines; 1.6 million affected

(CNN) -- Some 51 people are dead in the Philippines after weeks of intense rain caused severe flooding across the Asian nation, the country's national disaster agency said early Monday.

Rains continued to linger over much of the the island of Luzon, with land around the Visayan Sea and the eastern island of Mindanao also experiencing significant precipitation, the National Disaster Risk Reduction and Management Council said in a statement.

Those killed, ranging from ages 1 to 80, died from drowning, landslides or electrocution, according to the disaster agency.

Twelve people are still missing, while another eight were hurt -- all in landslides in southern Leyte province.

The crisis began weeks ago, on December 29, when a monsoon over northern and central Luzon met a cold front in southern Luzon, Visayas and Mindanao. The result was severe flooding and landslides in 25 provinces.

The storms have affected nearly 1.6 million people from more than 300,000 families, according to the disaster agency.

Some of the worst conditions have been in Caraga, on Mindanao island, where more than 600,000 people have been impacted and 20 killed. Leyte and Samar also have been hard hit, with about 530,000 people in that region affected.

The monsoon has wreaked havoc on structures and infrastructure as well. More than 500 homes have been destroyed, and just under 2,000 partially damaged. The disaster agency estimated that, in total, the storms caused 417,715,140 Philippine pesos' ($9.5 million U.S.) worth in damage to agriculture, infrastructure and private properties.

December and January are traditionally part of the Philippines' dry season, with heavy rains more common in the islands from May to October during the summer monsoon.

Chinese president arrives for U.S. state visit

Washington (CNN) -- Chinese President Hu Jintao arrived in the United States on Tuesday for a state visit that will include high-profile talks with President Barack Obama on trade, currency, North Korea and other issues.

The three-day trip includes a state dinner on Wednesday and the eighth face-to-face meeting between Obama and the Chinese leader, which administration officials say illustrates the importance of relations between two global powers at a time described by U.S. Secretary of State Hillary Clinton as a "critical juncture."

Chinese state media has reported that Hu will stress how a constructive, comprehensive partnership between the two nations could be mutually beneficial and help ensure stability in Asia and worldwide, despite differences between Beijing and Washington on issues such as human rights and currency controls.

In addition to Obama, Hu is also scheduled to meet with top legislators and business executives. After Washington, Hu will make a stop in Chicago on Thursday.

Vice President Joe Biden greeted Hu when the Chinese leader arrived at Joint Base Andrews in Maryland on Tuesday afternoon. A military honor guard saluted Hu and a military band played the national anthems of both countries as Hu and Biden stood on a red carpet on the air base tarmac.



Hu later arrived at the White House for what officials called a small dinner gathering with Obama, Clinton and National Security Adviser Tom Donilon.

"This provides a bit of an informal setting in which to have some of these discussions," White House Press Secretary Robert Gibbs said earlier Tuesday about the dinner.

On Wednesday, the two leaders will hold bilateral talks followed by a joint news conference, and Hu will be the guest of honor at a formal state dinner in the evening.

Before Hu's arrival, U.S. legislators and demonstrators criticized China's human rights record, including political repression, and called for Obama to press the issue in his talks with the Chinese leader.

"It is more important to honor and remember those who cannot attend this State Dinner rather than those who will be in attendance," said a statement by the Rev. Patrick Mahoney, director of the Christian Defense Coalition. "While the guests are dining on expensive and extravagant food there will be scores who will be oppressed and placed behind bars by the Chinese government because of their faith and political beliefs; people like Nobel Peace Prize Laureate Liu Xiaobo who is in prison," and others.

Gibbs said that Obama would raise human rights concerns with Hu.

"Obviously that is a topic of some significance that the two leaders will talk about," Gibbs told reporters. "We will continue to have difficult conversations" with China on the subject.

This week's meeting between the leaders of the world's two largest economies also put the spotlight on criticism that the government-controlled People's Bank of China artificially undervalues the yuan, bringing down the cost of Chinese exports, which would give it an advantage in the international market.

Last week, Treasury Secretary Timothy Geithner said China must do more to address its undervalued currency and dependence on exports, adding that such a move is in Beijing's best interest because it will control inflation.

Senate Democrats this week renewed their push to crack down on countries that manipulate their currencies, with China clearly in their crosshairs.

A bill introduced Monday by New York Sen. Charles Schumer and two other Democrats would impose penalties, including possible tariffs, on nations that manipulate their currencies.

The senators told reporters in a conference call that China's currency and trade polices undercut U.S. manufacturers and are costing American jobs.

"China's currency is like a boot on the throat of America's economic recovery," Schumer said.

But Hu dismissed the argument that price stability is a reason for yuan appreciation, telling the Washington Post and the Wall Street Journal that Chinese inflation is "moderate and controllable."

In an apparent attempt to smooth relations ahead of this week's meeting with Obama, the Bank of China last week began providing the yuan directly to U.S. traders for the first time.

The Chinese president has complaints of his own, particularly with Federal Reserve policy aimed at stimulating the economy. The policies especially affect China, given that it holds billions of dollars in government debt. The Federal Reserve policy makes U.S. bonds a less attractive investment for the Chinese.

In a speech Friday at the State Department, Clinton said China must assume the responsibility of being a world power, rather than basing policies on its own self-interest.

Clinton acknowledged that relations between Beijing and Washington were at a "critical juncture," noting persisting tensions on economic and security issues and accusing China of discriminatory practices that put American firms at a disadvantage.

Still, insisting that the United States doesn't view China as a threat, she said, "our economies are intertwined and so are our futures."

One hot-button issue that Beijing addressed on Sunday was the Korean peninsula, days after Clinton urged China to use its "unique ties" with North Korea to tamp down tensions there.

Urging an early resumption of long-stalled six-party talks committed to reining in North Korea's nuclear program, Assistant Foreign Minister Hu Zhengyue told Xinhua that "the peninsula's denuclearization and the normalization of relations" was in all parties' interest.

"China will continue to work with all the parties concerned and the international community to ensure peace, stability and prosperity," he said.

Major earthquake strikes southwestern Pakistan

Islamabad, Pakistan (CNN) -- An earthquake with a magnitude of 7.2 struck Wednesday morning in a remote area of southwestern Pakistan, but initial reports revealed no major damage.

The earthquake occurred at 1:23 a.m. (3:23 p.m. Tuesday ET) at a depth of 84 kilometers (52 miles), the U.S. Geological Survey said. It was centered 45 kilometers (30 miles) west of Dalbandin, and 1,035 kilometers (640 miles) west-southwest of Islamabad, the USGS said on its website.

Arif Mahmood, director of the Pakistan Meteorological Department, put the epicenter at 320 kilometers (about 200 miles) southwest of Quetta near Kharan, Balochistan, and said it had been felt in Punjab, Sindh, and Balochistan provinces in Pakistan, as well as parts of Iran and India.



Mahmood predicted major aftershocks. "Earthquakes with such magnitudes in the past have brought on aftershocks," he told CNN from Islamabad.

Residents near the epicenter in the districts of Kalat, Dalbadin and Kharan told CNN some mud-walled homes were damaged but no one was hurt.

An official at Quetta's Civil Hospital said a female cardiac patient suffered a fatal heart attack during the earthquake. He said two residents raced to the hospital but they proved not to have been injured, just scared.

Malik Muhammad Iqbal, the police chief of Balochistan province, said he was aware of no injuries.

"Things in the headquarters started shaking and books fell off the desks," Balochistan Police Inspector Sultan Mehmood told CNN in a telephone interview. "We left the headquarters running into the streets -- scared for our lives."

In Karachi, Faraz Leghari, director general police, said he had heard no immediate reports of casualties or building damage.

USGS initially reported the quake at 7.4. Quakes of 7.0 to 7.9 are classified as major; anything over 8.0 is classified as great.

In Dubai, about 500 miles southwest of the epicenter, a reporter said he felt a moderate shaking that lasted for about 30 seconds.

Usman Zahid, a night manager at Serina Hotel in Quetta, Pakistan, felt the quake. He said it was "frightening" and estimated that it lasted about 20 seconds. It left "broken glass in the kitchen" and made a chandelier swing, but caused no major damage, he said.

People with Twitter accounts in New Delhi, Jaipur and Dehradun -- all in India -- felt the quake. People with Twitter accounts in Bahrain said they felt the quake.

In Dubai, "I was just getting ready to go to bed," said Leone Lakhani in Dubai. She said she texted her friends in Abu Dhabi and Bahrain.

"It's not uncommon for this region to have earthquakes," said Kurt Frankel of the Georgia Institute of Technology. It is where two tectonic plates come together, he said.

Source: CNN

2 students shot in L.A. high school; suspect arrested

Los Angeles, California (CNN) -- A 17-year-old boy arrested after a handgun in his backpack accidentally discharged and wounded two other high students Tuesday was able to bring his automatic pistol on campus apparently because the Los Angeles school does only random metal detector checks, police said.

The chief of Los Angeles Unified Schools District police, Steve Zipperman, said the district's policy calls for random screening with metal detectors, to be determined by each school's principal.

"It is a possibility that the student who walked on with that backpack was not checked," Zipperman told reporters.

The arrested student, a senior whom authorities didn't identify, entered a health class Tuesday morning and set his backpack on a desk, Los Angeles Police Deputy Chief Patrick Gannon said.

When the backpack landed on the desk, the automatic handgun discharged, firing a single round that struck a girl in the temple and a boy in the neck, Zipperman said.



The student then fled, prompting a police search, Gannon said. Police were told the boy went to another classroom, and he was taken into custody about two hours after the shooting, Zipperman said.

Zipperman said the shooting appeared accidental. "Based on the information we have, it appears that it's a possible accident," he said. "There was no struggle taking him into custody."

Los Angeles Mayor Antonio Villaraigosa said he was keeping the victims and their families in his prayers.

"No student should ever fear for his or her life within the halls and classrooms of our schools," the mayor said in a statement. "We must work together to ensure safety in and around our schools so that all students can benefit from an environment conducive to learning."

The 15-year-old girl had head surgery early Tuesday afternoon at Harbor-UCLA Medical Center in Torrance, California, and was in critical condition, Hospital Chief Medical Officer Gail Anderson told reporters Tuesday.

The bullet struck the left side of her head, Anderson said, gesturing to his temple as he spoke. The bullet then also exited from the same area and didn't pass through her head, though it caused some fracturing to the girl's skull, Anderson said late Tuesday afternoon.

The girl suffered "a significant blood clot on the left side of her brain." Doctors removed a piece of her skull and haven't replaced it yet because the brain swells 48 hours after such an injury, Anderson said.

When the girl arrived at the hospital by ambulance, she was unconscious, said hospital Dr. Scott Bricker. "She already had signs of a significant brain injury" from the shock wave of the bullet striking her skull, Bricker said.

Said Anderson: "We're going to be looking for her to be moving her arms and legs" when she awakens.

Physicians didn't find any evidence of bullet fragments, Anderson said.

The 15-year-old boy was in fair condition with a neck wound, and he didn't need surgery, Anderson said.

"He seems to be resting comfortably," Anderson said. "The boy, he's in a lot better shape right now. But we can't tell until we get more information."

Students and faculty were dismissed from the school at 1:52 p.m., authorities said. The high school had been under lockdown shortly after the 10:41 a.m. shooting.

Those students who witnessed the shooting were giving statements to authorities and will be given an opportunity to speak to counselors, if needed, Zipperman said.

Police corrected an earlier report that at least three people were shot at the school, Gannon said.

In 2002, two students were seriously wounded in another shooting on the campus when three other students demanded money from one of them, the Los Angeles Times reported. Both students recovered from the gunshot wounds, and the three student assailants were sentenced to jail, the newspaper reported.

Source: CNN

Families search for missing as death toll rises in Brazilian floods

Rio De Janeiro (CNN) -- The death toll from devastating flooding in Brazil continued to climb Tuesday, surpassing 700, the government said.

A helicopter rescued 18 people from a city in Brazil's Rio de Janeiro state after rains caused devastating flooding and mudslides in the mountainous region.

Four children -- including a 30-day-old baby, were among those lifted to safety Monday. The Air Force said one of them -- 6-year-old Guilherme Carvalho -- summed up the feelings of the group with a simple exclamation: "Relief!"

But rescuers have not been able to reach some hard-hit areas, and many more people are feared dead. Forecasters predict rain will continue for several days in areas already submerged in water.

The death toll from flooding in Rio de Janeiro state has climbed to 710, according to government figures released Tuesday. And thousands are homeless across the state.



Other states in the South American country have also seen heavy rainfall. Last week, authorities in neighboring Sao Paulo state said 24 people had been killed by flooding.

In Rio de Janeiro state, flooding and mudslides turned the once-picturesque tourist town of Teresopolis into a wasteland. Bodies and belongings remained strewn amongst fallen boulders Monday as family members searched for loved ones in the rubble.

Outside a makeshift morgue in Teresopolis -- where the government said at least 292 people had died in flooding -- a crowd of people waited for their turn to identify loved ones.

Marco Antonio Siqueira Costa said the last time he saw his brother, sister-in-law and niece was a few days ago, before mud buried their house.

"I think that last meeting was God's way of granting us a farewell," he said.

Residents in the city donned masks and helped clean streets or deliver first aid. Others combed the city searching desperately for missing loved ones.

Meanwhile, experts and officials tried to pinpoint what caused the catastrophe.

"Combine a weather event and environmental irresponsibility and the sum equals a tragedy," said Carlos Minc, Rio de Janeiro's environment minister.

Minc said he wants to stop construction of homes in high-risk areas, such as river banks or steep mountain slopes -- a practice that he said was encouraged by previous governments. He pointed to Nova Friburgo -- the hardest-hit city, according to government figures, which list 335 deaths due to flooding there.

"We are monitoring river levels, but it isn't enough. In Nova Friburgo, for example, we had warned six hours in advance that the river was overflowing, but...there is no emergency plan or drills with the population so they know what to do in a situation like this," he said.

Brazilian authorities have been criticized for a lack of disaster planning, and for allowing people to build homes in areas known to become treacherous in the rainy season.

They are under increasing pressure to show a strong response. Brazil is scheduled to host the World Cup in 2014 and the Olympics in 2016.

Source: CNN

Men have upper hand in sexual economy

It's not a new theory: As women progress in educational and professional opportunities, their odds of finding a committed man appear to go down. Women in their 40s and 50s have long heard this, but new research finds it's true for women just entering adulthood as well.

That's one of the findings in the new book "Premarital Sex in America: How Young Americans Meet, Mate and Think About Marrying," by researchers Mark Regnerus and Jeremy Uecker at the University of Texas at Austin.

They looked at the results from a number of national studies including the National Longitudinal Study of Adolescent Health and the National Study of Youth and Religion, in addition to interviews with young people ages 18 to 23.

Researchers found that since women in the 18- to 23-year-old group feel they don't need men for financial dependence, many of them feel they can play around with multiple partners without consequence, and that the early 20s isn't the time to have a serious relationship. But eventually, they do come to want a real, lasting relationship. The problem is that there will still be women who will have sex readily without commitment, and since men know this, fewer of them are willing to go steady.

"Women have plenty of freedom, but freedom does not translate easily into getting what you want," Regnerus said.

The wide availability of pornography has also influenced the dynamics of relations between men and women, Regnerus said. A segment of 20-something men are content to have their sexual experiences by themselves, removing them from the pool of available partners. That means high-quality men - likely those who want monogamous, committed relationships - are still eligible for dating, but the overall dating pool has shrunk, meaning some women will be left unsatisfactorily single.

Researchers also found that marrying at or before age 20 constitutes the greatest risk for subsequent divorce, the data show. Early marriage doesn’t cause the divorce, but the partners are likely to be unprepared for the kinds of adjustments required, Regnerus said.

And here's perhaps some good news: Sexual behavior among this age group is less salacious than you might think. The "hookup culture" is most prominent when there is a Greek system present; otherwise, college students seem more inclined toward stable relations and have fewer sexual partners.

In case you were wondering, 16% of 18- to 23-year-olds are virgins, according to the surveys used in the book. In that age group there are more men than women who have never had sex. By age 27, the portion of virgins goes down to 8%.

The 3 Biggest Stories in Social Media This Morning

Welcome to this morning’s edition of “First To Know,” a series in which we keep you in the know on what’s happening in the digital world. We’re keeping our eyes on three particular stories of interest today.

Facebook Halts Phone & Address Sharing (For Now)

Following widespread displeasure over its recent decision to allow application developers to request access to a user’s address and mobile phone number, Facebook has decided to temporarily disable this feature until it implements changes that will help users make better informed decisions about their privacy.

Facebook Generated $1.86B in Ad Revenue in 2010

According to recently released figures from eMarketer, Facebook‘s revenue for advertising alone — which excludes revenue for virtual currencies and other sources — came to an impressive $1.86 billion in 2010.

Cheezburger Network Scores $30 Million in Funding

The Cheezburger Network, an Internet publisher known for popular memes like LOLcats and FAILS, has just scored a $30 million Series A led by Foundry Group, with participation from Madrona Venture Group, Avalon Ventures and SoftBank Capital.

Further News

* The World-Wide Web Consortium (W3C) has unveiled a new logo for HTML5.
* Mysterious UK guerilla artist Banksy is about to be unceremoniously identified to the highest bidder in an eBay auction.
* A new version of Instagram, featuring two new filters and the return of an old one, has hit the iOS App Store
* HP is bringing a new kind of comedy show to YouTubein which actors from the Upright Citizens Bridgade Theater will take skit ideas from viewers and perform them live on Google’s video-sharing site.

This Week's Best-Selling iPhone Game Was Developed By An Eighth Grader

An eighth-grader named Robert Nay knocked Angry Birds out of the top spot on iTunes this week with an app called Bubble Ball.

According to The New York Observer, Nay built his first web site in the third grade.

ABC News estimates that, if only Nay had charged a dollar for every download of Bubble Ball, he'd be $2,000,000 in the black.

Apple falls but its rivals gain, pushing Nasdaq index to 3-year high

New worries about Apple Inc.’s future failed to hold back the rest of the stock market on Tuesday: Key indexes shook off some early selling to close at fresh multiyear highs.

And what’s potentially bad for Apple -- co-founder Steve Jobs’ surprise decision to take another medical leave-of-absence -- might have been viewed as good for the company’s many tech rivals.

Nobody every accused Wall Street of having a heart, after all.

While Apple dropped $7.83, or 2.2%, to close at $340.65, shares of Google Inc. surged $15.45, or 2.5%, to $639.63, a three-year high. Google’s Android smart phone operating system is going head-to-head with Apple’s iPhone, of course.

Among other tech giants and Apple combatants, Microsoft Corp. added 36 cents, or 1.3%, to $28.66; Oracle Corp. gained 28 cents, or 0.9%, to $31.53; and Dell Corp. was up 5 cents, or 0.4%, to $14.10.

Blackberry smart phone maker Research in Motion Ltd. rose as much as 2.6% early Tuesday before falling back to close with a gain of 45 cents, or 0.7%, to $65.22.

Rallies in Google, Microsoft, Oracle and other tech shares more than offset Apple’s decline within the Nasdaq composite index, which closed up 10.55 points, or 0.4%, to 2,765.85. That left the Nasdaq at its highest level since November 2007, and up 4.3% just since the new year began.

For the market overall, after the powerful rally of the last 4 1/2 months a significant pullback shouldn’t surprise anyone. The Nasdaq is up 31% since Aug. 31; the Dow Jones industrial average is up 18% in the same period.

“Dow's Doubters Say Market Is On Borrowed Time” was the headline in the Wall Street Journal on Tuesday. The story included all of the usual suspects: Investor sentiment surveys show most people are bullish, market “fear” indexes such as the VIX are too low, and weak trading volume suggests the recent advance has flimsy support.

For now, that may leave the bulls at the mercy of fourth-quarter earnings reports, which will begin to pour out this week.

On that front, Apple gave its investors a reason to stay aboard for the ride: The company said after markets closed Tuesday that fourth-quarter profit soared 78% to $6 billion, or $6.43 a share, far surpassing analysts’ consensus mean estimate of $5.41 a share.

Apple also predicted a profit of about $4.90 a share in the current quarter, compared with analysts’ mean estimate of $4.47.

Apple shares rose in after-hours trading to $345.10 -- recouping more than half of what they lost in regular trading. The stock had reached a record high of $348.48 on Friday.

Apple COO Calls Android Tablet a “Bizarre Product”

Ahead of its earning call for the first quarter of fiscal 2011, Apple announced record-breaking earnings, led by strong sales of the iPhone, Mac and iPad product lines.

The iPad in particular had a phenomenal holiday season, with more than 7.3 million units sold. That’s an increase of more than 85% from the fourth quarter. Since launching the iPad in April 2010, Apple has sold almost 15 million iPads.

The success of the iPad hasn’t cannibalized Mac sales — to the contrary, Apple had its best quarter ever for the Mac, selling 4.19 million units in the December quarter.

Apple: We’re Not Sitting Still

As we saw at CES, tablet fever has taken over the consumer electronics industry, with would-be iPad competitors appearing at every turn. Everyone (and we do mean everyone) has a tablet or is working on a tablet.

The fact that Apple has established a user base of nearly 15 million in just nine months makes Apple a formidable competitor in this emerging space.

For comparison, Samsung’s Galaxy Tab — one of the few high-profile non-Apple tablets to hit the retail market before the end of 2010 — managed to sell more than a million units in its first 60 days. By comparison, Apple is averaging a little more than 2 million iPad units per month, with that figure rising every month.

We should note that these sorts of leads are not insurmountable. After all, Android (Android) as a device category is now eclipsing iOS in terms of sales. Still, individual phone models from companies like HTC, Motorola, Nokia and Samsung aren’t matching the figures Apple continues to turn out with the iPhone.

Apple COO Tim Cook (the man currently taking over day-to-day operations for Steve Jobs) commented on the current competition during Tuesday’s earnings call. Cook made it clear that Apple doesn’t believe the Android-based tablets on the market are competition. He called these devices “scaled up smartphones” and continued to opine that he sees them as “bizarre product[s]” that don’t offer the “real tablet experience,” and he asserted Apple’s belief that it has a “huge, first-mover advantage.”

Cook acknowledged that future tablets running Google (Google) Honeycomb or from RIM may provide some competition, noting that Apple will “assess [the competition] as [it is] coming;” Cook made it clear that Apple isn’t sitting still.

Apple CFO Peter Oppenheimer noted that 80% of the Fortune 100 is either deploying or piloting the iPad in the enterprise. That’s up from 65% in the fourth quarter of 2010.

With this level of penetration on the consumer and business side, unseating Apple in this space won’t be easy. It will be interesting to watch what Google, Microsoft, RIM and HP do in the future.

Apple Sells 7 Million iPads in Record-Breaking Quarter

One day after announcing that Steve Jobs was taking a leave of absence from the company, Apple has reported record-breaking earnings, with revenue of more than $26 billion for its fiscal first quarter, which includes holiday sales.

During the quarter, Apple sold 7.3 million iPads, 16.2 million iPhones, 4.1 million Macs and 19 million iPods. That brings the total number of iPads sold to nearly 15 million since the device was released last April.

The success of iPad doesn’t appear to be coming at the expense of Mac sales though, as some analysts had projected. Mac sales were up 23% year-over-year, setting a new record for the company.

iPhone sales were up 86% from the same quarter last year, with Apple remaining bullish on its prospects thanks to its impending launch on Verizon. “We’ve got some exciting things in the pipeline for this year including iPhone 4 on Verizon which customers can’t wait to get their hands on,” Jobs said in a statement.

Shares of Apple — which opened down about 5% this morning in the wake of the Jobs news — continued to rebound after hours following the initial release of the earnings report.

Apple is holding a conference call at 5 p.m. ET / 2 p.m. PT to discuss the results in-depth and undoubtedly face questions from analysts about Jobs’s health and the company’s plans for a successor. Stay tuned to Mashable throughout the afternoon for additional coverage.

Source: Mashable

Two Face Criminal Charges in AT&T Security Breach

Criminal charges have been filed against two individuals accused of stealing the e-mail addresses and other personal data of roughly 114,000 iPad 3G customers.

U.S. prosecutors have charged Daniel Spitler and Andrew Auernheimer (pictured) with one count of fraud and one count of conspiracy for allegedly hacking AT&T’s servers last June. The two were part of a group calling itself Goatse Security, which sent Gawker the full list of e-mail addresses. The list included well-known government officials, celebrities and other high-profile media professionals, including the former White House chief of staff, Rahm Emanuel, and Diane Sawyer of ABC News, as well as our own Christina Warren.

The addresses were allegedly obtained through a security loophole on AT&T’s website that returned e-mail addresses associated with ICC IDs, which are used to link SIM cards on mobile devices with specific subscribers. The group didn’t release information until the security hole had been closed, and it only released the data on the condition that the subscribers’ personal information would not be compromised.

Auernheimer said that he and his colleagues were acting in the public’s best interest to expose AT&T’s security hole. AT&T, however, believes it was a publicity stunt.

Auernheimer was arrested a week after the incident, when police acting on an FBI search warrant found cocaine, ecstasy and LSD, as well as unnamed controlled pharmaceuticals, in his home.

Spitler is expected to appear later today in federal court in Newark, New Jersey; Auernheimer is scheduled to appear in federal court in Arkansas. The FBI and Paul Fishman, the U.S. attorney for the District of New Jersey, have scheduled a joint press conference to discuss the case this afternoon.

Source: Reuters

Apple Chief Steve Jobs to Take Leave

Steve Jobs, who has battled pancreatic cancer and received a liver transplant, is taking another unexpected leave from running Apple Inc., raising uncertainty over his health and the future of the world's most valuable technology company

In a Monday morning email to Apple employees on a federal holiday, Mr. Jobs wrote that the company's board of directors "has granted me a medical leave of absence so I can focus on my health."

Apple's 55-year-old chief executive and co-founder didn't specify what health issue was causing him to take the time off or when he might return. Instead, Mr. Jobs said he hoped to be back as soon as possible and his family would "deeply appreciate respect for our privacy."

The leave marks the third time in the past decade Mr. Jobs has been forced to step back from his role at Apple, which he has built into a $65 billion consumer electronics giant with products such as the iPhone and iPad. He took a leave in 2004 when he had surgery to remove a tumor in his pancreas and then again in the first half of 2009 for the liver transplant

In his six-sentence email, which Apple released publicly, Mr. Jobs said he will continue as CEO and "be involved in major strategic decisions for the company." In his absence, day-to-day operations will be run by Tim Cook, his longtime lieutenant and chief operating officer. Mr. Cook, 50 years old, led Apple during Mr. Jobs's previous leave and won praise for his ability to make Apple's sprawling operations move on time.

Mr. Jobs's email came a day before the Cupertino, Calif., company is slated to report its latest quarterly results. It also was released on a day U.S. stock markets were closed to commemorate Martin Luther King's birthday. In Frankfurt trading, Apple shares fell 8% to €239.50 ($317.96).

he CEO's leave raises anew questions about the company's succession plans and product road map, since Mr. Jobs is so closely identified with Apple's gadgets and strategy. It also revives debate about Apple's disclosure practices, given the limited information the company has revealed about a CEO who is seen as so central to its success.

Mr. Jobs's Monday statement to Apple employees "leaves a lot to the imagination—and that was the problem the last time," said Charles Elson, head of the Weinberg Center for Corporate Governance at the University of Delaware's business school. "It does leave a lot for investors to worry about."

With many questions unanswered about Steve Jobs' medical leave of absence, Wall Street Journal 'ROI' columnist Brett Arends says the news is ominous for investors.

Apple chief executive officer Steve Jobs told employees in an email Monday that he will be taking a medical leave of absence but will remain CEO. WSJ's Marcelo Prince talks to Lauren Goode about what it means for the company and its shareholders.

The Securities and Exchange Commission opened an informal inquiry into Apple's disclosure about Mr. Jobs's health in January 2009, but didn't pursue an investigation. The agency is unlikely to open a fresh inquiry, as the company has publicly disclosed Mr Jobs's latest medical leave at its outset, people familiar with the matter said.

Mr. Jobs didn't respond to an email for comment or a call to his home. Apple's six other directors declined to comment or couldn't immediately be reached.

Asked if the company or board planned to disclose further details, Apple spokeswoman Katie Cotton responded: "We've said all we're going to say."

The news about Mr. Jobs, who was last seen in public in October at an Apple Macintosh event, surprised many in Silicon Valley. A former Apple employee said none of his former colleagues had noted any recent concerns with Mr. Jobs's health.

Mr. Jobs didn't appear last week at a Verizon Wireless event announcing the iPhone would soon be available through the carrier; Mr. Cook was there instead. Mr. Jobs was expected to announce with News Corp. a new digital publication for the iPad this week, but the event was postponed.

Concerns about Mr. Jobs's health have swirled since he appeared thin at a conference for developers in June 2008, before his liver transplant.

As Apple CEO Steve Jobs goes on medical leave, COO Tim Cook is set to run day-to-day operations at the company. Journal reporter Nick Wingfield talks to Lauren Goode about about Cook's management style and background.

People familiar with the situation said shortly after the transplant that Mr. Jobs was having trouble gaining weight. At his most recent appearance in October, the CEO continued to look thin.

Mr. Jobs was diagnosed in 2004 with a rare type of pancreatic cancer called islet cell neuroendocrine tumor, which could be cured if surgery removed it promptly. But in 2008 he began exhibiting weight loss, and questions intensified when he said he would skip the Macworld trade show in early 2009. The CEO initially blamed a hormone imbalance for his weight loss in January 2009 but a week later went on medical leave blaming a "more complex" condition he didn't disclose.

Apple didn't explain Mr. Jobs's 2009 medical leave, but a physician expert at the time said the type of cancer Mr. Jobs had commonly metastasizes in another organ, usually the liver, during a patient's lifetime. A Tennessee hospital later disclosed Mr. Jobs had received a liver transplant there.

Over the past year and a half, Mr. Jobs has again taken center stage in public events, making it clear that he was providing the direction of the company.

People familiar with the situation have said Mr. Jobs had come back to work with full energy and was like the "old Steve." During his 2009 leave, Mr. Jobs kept close management ties with Apple.

Kim Caughey Forrest, an analyst for the Fort Pitt Capital fund, which previously owned Apple stock, said there are concerns about succession at Apple.

"I'm not sure that the company, and the board of directors in particular, have answered the question on succession planning," she said. "We had this issue in 2008, and the board was supposed to learn from it, but they haven't."

Despite concerns about Mr. Jobs's health, Apple's business has flourished. Over Apple's past two fiscal years ended in September, the company's sales have more than doubled to $65.2 billion and its profit has nearly tripled to $14 billion.

Last year, Apple passed Microsoft Corp. in market capitalization to become the world's most valuable technology company. The stock hit its latest high of $348.48 on the Nasdaq Stock Market on Friday, more than four times where it stood two years ago.

Stocks: Tech and bank earnings in spotlight

NEW YORK (CNNMoney) -- Stocks have shrugged off economic reports lately, looking instead to this week's results from big names in the technology and financial industries.

"All eyes on are on the earnings -- they drive stock prices," said Keith Springer, head of Springer Financial Advisors. "The real key is corporate America remaining strong. Little else seems to matter much right now."

In that case, traders will have a lot to digest over the next few days. About 10% of the S&P 500, or 49 companies, will report earnings this week.

Analysts say the market is due for a correction, but is "resting" by moving sideways -- instead of lower -- as it awaits the avalanche of earnings this week.

On Friday, the Dow and the S&P posted their seventh straight week of gains. That's the highest streak for the Dow since the two months of consecutive gains that ended in April 2010.

Traders will be looking to the earnings reports to see if companies talk about an improving economic picture, said Mark Luschini, chief investment strategist at Janney Montgomery Scott.

"They also want to see what company management says about hiring prospects -- because in order to sustain an economic recovery, we need to see jobs growth," he added.

Luschini said Wall Street is looking for big numbers this earnings season: "news that doesn't continue to really surprise on the upside looks like it's going to be treated as indifferent."

S&P 500 earnings are expected to have climbed 31.8% in the fourth quarter of 2010, according to earnings tracker Thomson Reuters. S&P companies' revenues are expected to have risen 6%.

The recession brought nine straight quarters of losses until the final quarter of 2009, which snapped the downward trend. Then the first three quarters of 2010 logged growth -- so this reporting period could bring the fifth-straight upward quarter.

Springer said he's expecting fourth-quarter 2010 earnings were "stellar," especially in the banks and techs that are reporting this week.

JPMorgan Chase (JPM, Fortune 500) laid the foundation for strong bank earnings on Friday, when it reported a 47% jump in fourth-quarter earnings to $4.8 billion, or $1.12 per share. That beat the 99 cents per share forecast by analysts.

"Banks are going to make a fortune," Springer said.

Several technology companies, including Apple, Google and IBM will also report this week. Springer notes these reports could give some insight into business spending.

Despite a holiday on Monday, the week is still chock-full of economic reports. Many are in the housing sector, with data due about housing affordability, new home construction, building permits and existing home sales.

Monday: The U.S. stock market, bond market and federal offices are closed in observance of Martin Luther King, Jr. Day.

Tuesday: A reading on New York regional manufacturing in January is due before the bell. Also, Citigroup (C, Fortune 500) will report its earnings before trade starts.

After the start of trade, the National Association of Home Builders and Wells Fargo will release a report with their housing affordability index. Economists polled by Briefing.com expect the reading stayed flat at 16 in January.

After the bell, both Apple (AAPL, Fortune 500) and IBM (IBM, Fortune 500) will release earnings results.

Wednesday: Chinese President Hu Jintao will visit the White House to talk with President Obama.

Before the start of trade, Goldman Sachs (GS, Fortune 500) and Wells Fargo (WFC, Fortune 500) will report quarterly earnings.

Also before the opening bell, government figures for December are expected to show that initial construction of single family homes fell and requests for building permits rose.

Thursday: Morgan Stanley (MS, Fortune 500) will report results ahead of the bell, while Google (GOOG, Fortune 500) and Advanced Micro Devices (AMD, Fortune 500) come out after the close of trade.

The weekly jobless claims report is due in the morning. Also out early is the Philadelphia Fed index, a regional reading on manufacturing.

The weekly crude oil inventories report is due later in the morning, one day later than usual because of Monday's holiday.

The National Association of Realtors will release its monthly report on existing home sales, which analysts polled by Briefing.com expect rose to an annual rate of 4.8 million in December from 4.68 million the previous month.

The Leading Economic Indicators (LEI), from the Conference Board, is expected to have fallen to 0.6% in December from 1.1% the previous month.

Friday: Both Bank of America (BAC, Fortune 500) and General Electric (GE, Fortune 500) will report earnings before the start of trade.

What's going on in Tunisia?

Following a month of largely leaderless popular protests against the government, Tunisia's President Zine El Abidine Ben Ali fled the country on Friday. Fouad Mebazaa, the speaker of parliament, was sworn in the following day as interim president, and new elections are due within 60 days.

What were the protests about?

They were sparked by the suicide of an unemployed college graduate in December. The man set himself on fire in front of a government building in the town of Sidi Bouzid after police confiscated his fruit cart, saying he was selling without a permit, according to Amnesty International. He died January 4 from his injuries.

The event tore the lid off what appears to have been long-simmering fury at Ben Ali and his associates. Tunisians accuse the ruling circle of rampant corruption and nepotism. Recent diplomatic cables from the U.S. Embassy in Tunisia obtained by WikiLeaks revealed growing disquiet with the government -- especially over nepotism.

How violent have the protests been?

At least 21 people died in protests before Ben Ali fled, according to the government. Local unions put the figure at more than 50.

The U.N. High Commissioner for Human Rights, Navi Pillay, citing reports, said the protests had been peaceful and that security forces used excessive force.

Prime Minister Mohamed Ghannouchi on Thursday declined to answer a CNN question about whether live ammunition or snipers were used against demonstrators, saying those matters will be part of an investigation into the conduct of the security forces.

Does this mean Tunisia is becoming a fully-fledged democracy?

It's too soon to say. The protests have been dubbed the "Jasmine Revolution," but CNN's Ben Wedeman in Tunis, the capital, says the military has moved quickly to fill the power void. Curfews are in place and tanks and armored personnel carriers were on the streets of the capital's main streets.

Are events like this unusual in Tunisia?

They're very unusual, not only in Tunisia but across the Middle East. Ben Ali was only the second president of Tunisia since it gained independence from France in 1956. His predecessor, President Habib Bourguiba, ruled for more than 20 years until he was succeeded by Ben Ali -- then the prime minister -- in 1987. Ben Ali claimed victory in five successive presidential elections since then, most recently officially taking nearly 90% of the vote in November 2009.

Why does Tunisia matter?

It could be the canary in a coal mine, since it's far from the only Arab nation with a long-time president and a young, underemployed population.

Riots broke out in neighboring Algeria after weeks of demonstrations in Tunisia, and Egypt, Libya and Yemen will certainly be watching closely to see what happens in Tunis.

Libya's Moammar Gadhafi said he was "sad and hurt" after Ben Ali fled Tunisia, warning that the country was heading for "more unjustified chaos.

"It used to be a safe, secure and friendly nation. Development was going on, with job opportunities, work training, education. And suddenly, one day people destroy their own houses," Gadhafi said in a nationally televised speech.

With a population of just over 10 million, Tunisia is not one of the major players in the region. It's not an oil exporter, does not have disputes with its neighbors, and is relatively prosperous and liberal for north Africa. So if popular protest can topple a president there, the region's autocrats must assume they need to be on their guard.

US Rep. Giffords upgraded from critical to serious condition

Tucson, Arizona (CNN) -- U.S. Rep. Gabrielle Giffords has been upgraded from critical to serious condition, eight days after being shot through the brain at a public event.

"The congresswoman continues to do well," University Medical Center in Tucson said Sunday in a statement.

Giffords has been off the ventilator and breathing on her own, through a tracheotomy tube, since a surgical procedure on Saturday. A feeding tube was inserted as part of the same operation, which took place exactly one week after a bullet went in and out of her skull.

The Arizona Democrat is moving both sides of her body, her friend and fellow congresswoman, Sen. Kirsten Gillibrand, said Sunday.

"She's doing great," the New York Democrat said on NBC's "Meet The Press," adding that Giffords is "making progress every day."

Gillibrand told CBS' "Face the Nation" that Giffords is moving both sides of her body and is "showing people that she can communicate well by, you know, holding our hands and moving her arms and legs and looking at us. So she's making great progress."

Giffords was among 19 people shot at the "Congress on Your Corner" event at a Tucson supermarket. Authorities believe she was the target of the mass shooting that left six dead and another 13 wounded. A 22-year-old suspect, Jared Lee Loughner, is in custody.

Also Sunday, hundreds of Arizonans, some pushing baby strollers and others walking dogs, turned out for a "Walk for Peace" to honor Giffords and the other shooting victims.

Participant Mike Urbanski said he was a high school classmate of U.S. District Judge John Roll, who was killed in the shooting. He said he had attended Roll's funeral, as well as that of nine-year-old Christina Green.

"We really love the Tucson community ... I think it's rocked us all, so this is kind of for us today also, I think," Urbanski said.

"I was so sad for the families (of the victims), and so I just said, 'Hey, let's start something,' " organizer Amanda Lopez said. She and her friends handed out more than 1,000 fliers and helped spread the word through Facebook. She said she was surprised at the turnout, which she estimated at more than 200 people.

Participants cheered as they walked through Tucson streets, with the first walkers carrying a large peace banner. Some drivers honked in support.

A funeral was held Sunday afternoon for Dorwan Stoddard, a retired construction worker, at Calvary Chapel East in Tucson.

Witnesses said when a gunman opened fire at the supermarket, Stoddard was trying to protect his wife, Mavy, when he was shot in the head and fell onto her. Mavy Stoddard was shot three times in her legs but is expected to recover.

Another person wounded in the incident, 58-year-old James Tucker, was released from the hospital Saturday, according to the medical center. Two other victims are in good condition at the hospital. Others were treated and released at hospitals.

In addition to Stoddard, Christina Green and John Roll, those killed in the shooting included Gabe Zimmerman; Dorothy Morris, 76; and Phyllis Schneck, 79.

Meanwhile, lawmakers debated the issue of gun control Sunday.

Sen. Charles Schumer, D-New York, told "Meet The Press" the shooting underscores the need for better gun control laws. Under a current law, Loughner "should not have been allowed to buy a gun" after being rejected by the military for excessive drug use, he said. However, the law does not require the military to notify the FBI about such rejections or for that information to be added to a national database.

In addition, laws aimed at preventing the mentally ill from obtaining guns should be tightened and properly enforced, he said.

Schumer acknowledged that the issue is contentious and making changes is difficult. "We're trying to find some common ground," he said.

Sen. Tom Coburn, R-Oklahoma, told "Meet The Press" the issue is why there was no prior intervention for Loughner.

Criminals and the mentally ill can find ways around gun control laws, he said, which limits the ability of law-abiding people to defend themselves.

"We need to make sure we fix the right problem here," Coburn said. "How do we put our hands around someone who is so disturbed?"

The contentious issue of gun control was also put in the spotlight Saturday when one of the 13 wounded in the attack was involuntarily committed to a county mental services unit after he made threats against a Tea Party member at a town hall event in Tucson.

James Eric Fuller, 63, photographed Trent Humphries and said, "You are dead," when Humphries began speaking at the event, according to Pima County Sheriff's Department spokesman Jason Ogan.

Humphries told CNN that Fuller's comment came when the town hall discussion turned toward the issue of gun control.

"I was asked to give my thoughts on gun control laws and perhaps the passage of new laws," Humphries said of the incident. "I said something to the effect that although gun rights and laws are not necessarily the primary focus of the Tucson Tea Party, our community needs to be given the opportunity to allow some time to pass and people to heal before we start this type of political dialogue."

Also Sunday, both Coburn and Schumer called for more civil political debate, as inflamed political rhetoric has been named by many as a factor in the shooting. Coburn and Schumer said they will sit together at the upcoming State of the Union address.