Equities climb in wake of positive data

NEW YORK (Reuters) - Stocks edged higher on Friday, with the benchmark S&P index hitting a five-year high, in the wake of a batch of encouraging domestic and international economic reports.

Data showing stronger international trade in China and Germany, and a report indicating the U.S. trade deficit had narrowed in December, pointed to improving global demand.

The U.S. technology sector rose, boosted by gains in LinkedIn Corp and AOL Inc following their quarterly results, and in turn, lifting the Nasdaq.

Shares of LinkedIn jumped 22 percent to $151.81 after announcing quarterly profits and giving a bullish forecast for the year.

AOL Inc shares rose 7.1 percent to $33.62 after the online company reported higher quarterly profit, boosted by a 13 percent rise in advertising sales.

The benchmark S&P 500 <.spx>, up more than 6 percent for the year, is on track for six straight weeks of gains for the first time since August 2012.

But an advance has been tougher in recent days as investors await strong trading incentives to drive the index further upward.

"The rally is definitely slowing down. We might see a record high this year but we do need a bit of correction before going there," said Randy Frederick, director of trading and derivatives at Charles Schwab.

"We've been in this 1,516 level (for the S&P 500) for the sixth straight session and need break above to really move higher."

The Dow Jones industrial average <.dji> was up 44.79 points, or 0.32 percent, at 13,988.84. The Standard & Poor's 500 Index <.spx> was up 7.13 points, or 0.47 percent, at 1,516.52. The Nasdaq Composite Index <.ixic> was up 29.51 points, or 0.93 percent, at 3,194.64.

The CBOE Volatility index <.vix>, Wall Street's so-called fear gauge, was down 4.2 percent at 12.94. The gauge, a key measure of market expectations of short-term volatility, generally moves inversely to the S&P 500.

Some analysts wondered if the market would convincingly stride higher.

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

Healthcare stocks climbed, with the Morgan Stanley healthcare payor index <.hmo> up 2.3 percent. Molina Healthcare Inc surged 9.7 percent to $31.67 as the biggest boost to the index after posting fourth-quarter earnings.

McDonald's Corp said January sales at established hamburger restaurants around the world fell 1.9 percent, a steeper decline than analysts had expected. Still, shares edged up 0.7 percent to $95.33.

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

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

"The reason why this is so important is because the trade deficit was a major contributor to the negative GDP report we had in Q4. With today's number, we could see a reversal of this in the next GDP report, going from negative to positive," Frederick said.

On the earnings front, many companies beat estimates as their profits grew.

According to Thomson Reuters data through Friday morning, of 339 companies in the S&P 500 that have reported earnings, 69.9 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters.

Fourth-quarter earnings for S&P 500 companies grew 5.2 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

(Editing by Bernadette Baum)

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The Lede: Video Broadcast on State Television Was Downloaded From U.S. Drone, Iran Says

As The Associated Press reports from Tehran, late Wednesday Iran’s state television broadcast what it described as video recorded by the American surveillance drone that crash-landed about 140 miles from the country’s border with Afghanistan in late 2011.

Video broadcast by Iranian state television Wednesday included what was described as footage recorded by an American surveillance drone that crash-landed in Iran in 2011.

The state television report includes aerial views of what the narration describes as the American air base in Kandahar, Afghanistan, mixed in with still photographs of an RQ-170 Sentinel stealth drone at that base made public in 2011, and images of the craft being recovered in 2011 by Iran’s military.

The report features an interview with Gen. Amir Ali Hajizadeh, identified as the head of the aerospace division of Iran’s Revolutionary Guard Corps, who denied that the drone had simply crashed because of a computer malfunction, as American officials have claimed. “We were able to definitively access the data of the drone, once we brought it down,” General Hajizadeh said.

More footage said to have been recorded by the drone can be seen in a copy of the 24-minute Iranian report posted on YouTube on Wednesday by Lenziran, a site that monitors Iranian media.

In an analysis of the footage for Foreign Policy, the national security reporter John Reed observes that in one segment of the Iranian report, “the camera on this aircraft is positioned behind a rather complex nose landing gear assembly — a layout that matches grainy Web images of the Sentinel that show what looks like a compartment that could contain a camera positioned on the bottom of the airplane, just behind the front landing gear.”

A copy of an Iranian television report on a captured United States drone posted on YouTube late Wednesday.

The report, Mr. Reed adds, also features what appear to be authentic images of an American air base, “right down to C-130s parked on the ramp,” and “what looks like an MQ-9 Reaper drone (or possibly two) parked in an enclosed ramp — a drone pen if you will — complete with a walled perimeter and those tent hangars that are seen at expeditionary drone bases around the world.”

As The A.P. notes, on Thursday Iran’s Fars News Agency, which is close to the Revolutionary Guards, claimed that Iran had also started to produce functional copies of the smaller, American ScanEagle surveillance drone it displayed on state television in December. The Fars report quoted Iran’s deputy defense minister, Mohammad Eslami, saying that the country had also established a “production line for the drones in foreign countries.”

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Shirley MacLaine's Only Daughter Pens a Shocking New Tell-All

Seeing her mom, Shirley MacLaine, play a saucy septuagenarian on Downton Abbey, Sachi Parker couldn't help but smile.

"She was true to form," Parker says of MacLaine, 78, whose zinger-slinging turn as Lady Grantham's American mom shook up the big house this season. "It certainly hit home."

Hearing about Parker's relationship with MacLaine makes it easy to understand why.

Raised mostly by her dad, Parker grew up feeling distanced from her movie-star mother. She yearned for MacLaine's attention – so much so that when Parker, 56, also an actress, became a mom herself (to Frank Jr., 16, and Arin, 14, her kids with ex-husband Frank Murray), "I overcompensated," she tells PEOPLE. "But being a great mom is healing for me."

In her memoir Lucky Me, excerpted below, she shares her painful story (a story her mother, in a statement to PEOPLE, calls "virtually all fiction. I'm sorry to see such a dishonest, opportunistic effort from my daughter").

For all their ups and downs, she and her mom "love each other dearly," Parker says. "I've accepted who she is."

At age 2, Sachi was sent to live in Japan with her dad, producer Steve Parker. In the summers she visited MacLaine. "My visits in L.A. started at the airport, with Mom rushing up and giving me an all-encompassing hug. Once we got into the car she'd say, 'Let's have fun!'

"Sometimes we'd head down to the Piggly Wiggly and eat cookies from the bakery. They weren't supposed to be free, but Mom had no qualms about grabbing one. No one stopped her; she was a celebrity, after all."

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Southern diet, fried foods, may raise stroke risk

Deep-fried foods may be causing trouble in the Deep South. People whose diets are heavy on them and sugary drinks like sweet tea and soda were more likely to suffer a stroke, a new study finds.

It's the first big look at diet and strokes, and researchers say it might help explain why blacks in the Southeast — the nation's "stroke belt" — suffer more of them.

Blacks were five times more likely than whites to have the Southern dietary pattern linked with the highest stroke risk. And blacks and whites who live in the South were more likely to eat this way than people in other parts of the country were. Diet might explain as much as two-thirds of the excess stroke risk seen in blacks versus whites, researchers concluded.

"We're talking about fried foods, french fries, hamburgers, processed meats, hot dogs," bacon, ham, liver, gizzards and sugary drinks, said the study's leader, Suzanne Judd of the University of Alabama in Birmingham.

People who ate about six meals a week featuring these sorts of foods had a 41 percent higher stroke risk than people who ate that way about once a month, researchers found.

In contrast, people whose diets were high in fruits, vegetables, whole grains and fish had a 29 percent lower stroke risk.

"It's a very big difference," Judd said. "The message for people in the middle is there's a graded risk" — the likelihood of suffering a stroke rises in proportion to each Southern meal in a week.

Results were reported Thursday at an American Stroke Association conference in Honolulu.

The federally funded study was launched in 2002 to explore regional variations in stroke risks and reasons for them. More than 20,000 people 45 or older — half of them black — from all 48 mainland states filled out food surveys and were sorted into one of five diet styles:

—Southern: Fried foods, processed meats (lunchmeat, jerky), red meat, eggs, sweet drinks and whole milk.

—Convenience: Mexican and Chinese food, pizza, pasta.

—Plant-based: Fruits, vegetables, juice, cereal, fish, poultry, yogurt, nuts and whole-grain bread.

—Sweets: Added fats, breads, chocolate, desserts, sweet breakfast foods.

—Alcohol: Beer, wine, liquor, green leafy vegetables, salad dressings, nuts and seeds, coffee.

"They're not mutually exclusive" — for example, hamburgers fall into both convenience and Southern diets, Judd said. Each person got a score for each diet, depending on how many meals leaned that way.

Over more than five years of follow-up, nearly 500 strokes occurred. Researchers saw clear patterns with the Southern and plant-based diets; the other three didn't seem to affect stroke risk.

There were 138 strokes among the 4,977 who ate the most Southern food, compared to 109 strokes among the 5,156 people eating the least of it.

There were 122 strokes among the 5,076 who ate the most plant-based meals, compared to 135 strokes among the 5,056 people who seldom ate that way.

The trends held up after researchers took into account other factors such as age, income, smoking, education, exercise and total calories consumed.

Fried foods tend to be eaten with lots of salt, which raises blood pressure — a known stroke risk factor, Judd said. And sweet drinks can contribute to diabetes, the disease that celebrity chef Paula Deen — the queen of Southern cuisine — revealed she had a year ago.

The National Institute of Neurological Disorders and Stroke, drugmaker Amgen Inc. and General Mills Inc. funded the study.

"This study does strongly suggest that food does have an influence and people should be trying to avoid these kinds of fatty foods and high sugar content," said an independent expert, Dr. Brian Silver, a Brown University neurologist and stroke center director at Rhode Island Hospital.

"I don't mean to sound like an ogre. I know when I'm in New Orleans I certainly enjoy the food there. But you don't have to make a regular habit of eating all this stuff."

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Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP

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Wall Street dips on renewed euro zone concerns

NEW YORK (Reuters) - Shares fell on Thursday after the euro currency dropped against the safe-haven dollar and yen, raising worries about Europe's outlook and curbing investors' appetite for risky assets such as stocks.

The euro sank after European Central Bank President Mario Draghi said the exchange rate was important to growth and price stability, which investors took as a sign the bank is concerned about the euro's advance in recent days.

U.S. stocks have been in an uninterrupted uptrend for most of the year, with the S&P 500 gaining more than 5 percent for 2013.

"The market is a bit shaky on the back of some of the Draghi comments" amid worry the strength of the euro might hamper economic recovery, said Andre Bakhos, director of market analytics at LEK Securities in New York.

"Whether this ignites renewed concerns about the euro debt struggles and Europe in general is yet to be seen, but the market is looking for any reason to take a profit. It is just consolidating near multi-year highs, taking a respite before we advance higher."

The Dow Jones industrial average <.dji> was down 92.05 points, or 0.66 percent, at 13,894.47. The Standard & Poor's 500 Index <.spx> was down 7.93 points, or 0.52 percent, at 1,504.19. The Nasdaq Composite Index <.ixic> was down 14.95 points, or 0.47 percent, at 3,153.52.

Housing and retail stocks were the day's biggest decliners. The housing sector index <.hgx> was off 1 percent and the S&P housing index <.spxrt> was off 0.5 percent.

Top U.S. retailers reported strong January sales after offering compelling merchandise that drew in shoppers facing a hit to their take-home pay from higher payroll taxes.

Macy's Inc rose 1.3 percent to $40.01 after reporting January same store sales rose 11.7 percent.

But Ann Inc dropped 6.6 percent to $30.63 after forecasting fourth-quarter sales below analysts' expectations.

Fund manager David Einhorn's Greenlight Capital on Thursday said it has sued Apple Inc and said the company needs to do more to unlock value for shareholders. Apple shares gained 1.2 percent at $460.16.

Akamai Technologies Inc lost 15.6 percent to $35.06 as the worst performer on the S&P 500 after the Internet content delivery company forecast current-quarter revenue below analysts' expectations.

Initial jobless claims dipped last week, with the four-week moving average falling to its lowest level since March 2008, signaling the economy continues to recover slowly.

A separate report said fourth-quarter productivity registered its biggest drop in nearly two years, while unit labor costs jumped 4.5 percent, more than economists expected.

According to Thomson Reuters data through Thursday morning, of 317 companies in the S&P 500 that have reported earnings, 69 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters.

Fourth-quarter earnings for S&P 500 companies rose 5 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

(Additional reporting by Chuck Mikolajczak; Editing by Kenneth Barry and Nick Zieminski)

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Clashes Erupt in Damascus, Shattering Lull, as Prospects for Talks Dim

Goran Tomasevic/Reuters

A building in the Damascus suburb of Zamalka was hit by a mortar shell fired by the Syrian Army on Wednesday.

BEIRUT, Lebanon — Syrian insurgents attacked military checkpoints and other targets in parts of central Damascus on Wednesday, antigovernment activist groups reported. The fighting shattered a lull there as prospects for any talks between the antagonists appeared to dim, a week after the opposition coalition leader first proposed the surprise idea of a dialogue aimed at ending the war.

Some antigovernment activists described the resumption of fighting, which had lapsed for the past few weeks, as part of a renewed effort by rebels to seize control of central Damascus, the Syrian capital, although that depiction seemed highly exaggerated. Witness accounts said many people were going about their business, while others noted that previous rebel claims of territorial gains in Damascus had almost always turned out to be embellished or unfounded.

Representatives of the Military Council of Damascus, an insurgent group, said that at least 33 members of President Bashar al-Assad’s security forces in Damascus had surrendered, while others had fled central Al Abasiyeen Square, and that other forces had erected roadblocks on all access streets to the area to thwart the movement of rebel fighters.

Salam Mohammed, an activist in Damascus, described Al Abasiyeen Square as “on fire,” and a video clip uploaded on YouTube showed a thick column of black smoke spiraling over the area while the sound of shelling could be heard. A voice is heard saying the shelling had started a fire. The Local Coordination Committees, an anti-Assad activist network in Syria, also reported gunfire in nearby streets.

Firas al-Horani, a military council spokesman, said fighters of the Free Syrian Army, the main armed opposition group, were in control of Al Abasiyeen Square. He also said, “The capital, Damascus, is in a state of paralysis at the moment, and clashes are in full force in the streets.”

It was impossible to confirm Mr. Horani’s assertions or the extent of the fighting because of Syrian government restrictions on foreign news organizations. But Syria’s state-run media said insurgent claims of combat success in Damascus were false. “Those are miserable attempts to raise the morale of terrorists who are fleeing our valiant armed forces,” said SANA, the official news agency.

Deadly violence also was reported in the Homs Province town of Palmyra, the site of a notorious prison where Mr. Assad’s father, Hafez, ordered the summary execution of about 1,000 prisoners during an uprising against his family’s grip on power in the 1980s.

The Syrian Observatory for Human Rights, a Britain-based group with a network of contacts inside Syria, said two booby-trapped cars exploded near the military intelligence and state security branches, killing at least 12 members of the security forces and wounding more than 20. The observatory said government forces deployed throughout Palmyra afterward, engaging in gun battles with insurgents that left at least eight civilians wounded in the cross-fire.

SANA also reported an attack but said it was caused by two suicide bombers who had targeted a residential part of the town, killing an unspecified number of civilians.

The new mayhem came as discord appeared to grow within the National Coalition of Syrian Revolutionary and Opposition Forces, the umbrella anti-Assad group, over a proposal made on Jan. 30 by Sheik Ahmad Moaz al-Khatib, its leader, to engage in talks with Mr. Assad’s government aimed at ending the nearly two-year-old conflict, which has left more than 60,000 people dead. Although Sheik Khatib’s proposal contained a number of conditions, it broke a longstanding principle that Mr. Assad must relinquish power before any talks can begin.

Many of Sheik Khatib’s colleagues grudgingly agreed to go along with the proposal after it had been made, but critical voices have been rising, especially among the coalition’s more militant elements.

In a new video uploaded on YouTube, a cleric from the Nusra Front, an anti-Assad Islamist militant group that the Obama administration has classified as a terrorist organization, said in a prayer speech that brute force against Mr. Assad and his disciples was the only solution.

“We will cut their heads, we swear to kill them all, and they will see our worst war,” said the cleric, who spoke in Libyan-accented Arabic at a mosque in the contested northern city of Aleppo, holding a sword in his right hand. “No for the negotiations, no for the talks, no retreat in a jihad for God’s sake.”

Hania Mourtada reported from Beirut, and Rick Gladstone from New York. Karam Shoumali contributed reporting from Antakya, Turkey.

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Harley Pasternak Blogs About the Surprising Ways Alcohol Can Hurt Your Diet

Celebrity Blog

By Harley Pasternak

02/06/2013 at 02:00 PM EST

Harley Pasternak

Courtesy Harley Pasternak

Last week, country singer Tim McGraw made a splash when PEOPLE magazine featured an article about his complete physique transformation.

What I found most interesting about Tim's turn around was his revelation that drinking had been the primary roadblock. Tim realized that his alcohol intake not only added more girth to his gut, but it led to his poor dietary decisions, and sapped his desire to work out.

Tim also went on to explain how his family was the main reason behind his decision to give up drinking, get healthy, and be a positive/healthy role model. And he looks better than he ever has at 45!

There is a lot of conflicting information and opinion out there about alcohol and its role in weight gain. If I had a penny for every person who's told me about all the research showing how a glass of wine a day can actually be heart healthy (but that same person goes on to drink four beers with their glass of wine a day), I'd have a lot of pennies!

Believe it or not, the extra calories from alcohol is not the primary reason people gain weight when the drink too much or too often. In fact, it's a distant third.

I don't want to be a total killjoy and say that you can never have a drink again, but I don't want you to sabotage all your hard work to be healthier with alcohol, either. Let's take a look at how alcohol can undermine your weight-loss efforts.

1. ALCOHOL DIMINISHES YOUR BODY'S ABILITY TO BURN FAT
When you drink alcohol, it's broken down into acetate, which your body burns for energy first – before any other calorie source or stored fat. So the energy that we expend when we have alcohol in our system is coming from the alcohol, not the other carbohydrates or fats which have to be stored if they're not burned.

In plain English? Alcohol squashes our ability to burn fat. In fact, a study published in the American Journal of Clinical Nutrition found subjects who consumed less than an ounce of alcohol over a 30-minute time period decreased their body's ability to burn fat by 73 percent!

2. ALCOHOL WEAKENS OUR INHIBITIONS
Many of my clients tell me that they find themselves straying from their healthy eating habits when they've had a couple of drinks. When we drink alcohol, the functions our bodies use to tell us when we're full and when to stop eating are dulled. So not only are we more likely to give into temptation, we're also less likely to be able to tell when we've had enough.

In a UK Study that looked at alcohol's effect on calorie consumption, those who had the equivalent of two drinks ate up to 30% more. Building on that same principle, a Dutch study found that it took subjects longer to feel full when they drank alcohol before a meal, when compared to those who had a non-alcoholic beverage prior to eating. To put it simply, when we drink alcohol, we're more likely to eat too much of the wrong things.

3. ALCOHOL IS LOADED WITH CALORIES
Alcohol has nearly twice as many calories per gram as protein or carbohydrates. We've all read about the surprising calorie counts of our favorite alcoholic beverages – 740 calories in a margarita! 210 in a cosmopolitan! But even if you cut out the sugary mixers and liqueurs used in your favorite cocktails, you're still consuming a lot of empty calories. Remember: alcohol is not an essential nutrient. Any calorie we consume from alcohol is completely valueless.

4. ALCOHOL PREVENTS ABSORPTION OF VITAL NUTRIENTS
When we drink alcohol, the body shifts gears and focuses its energies on expelling the alcohol, which leaves little time for it to perform its other necessary functions, like processing vitamins and minerals and maintaining blood glucose levels, which are integral to maintaining a healthy metabolism. So not only does alcohol not have any nutrient value of its own, it also makes your body less able absorb and process nutrients that are valuable to you. So when we drink, those superfoods that we're trying to include in our diets become a whole lot less super.

5. ALCOHOL PREVENTS US FROM GETTING A GOOD NIGHT'S SLEEP
If you read my blog post on sleep's impact on our weight and bodies as a whole, you understand how important sleep is to our weight and overall health. Alcohol affects the quality of our sleep in a number of ways, from increased waking to shallower sleep, to pain due to heartburn caused by inflammation of your digestive system.

Not only that, but you can develop a dependence on alcohol to fall asleep, which actually works against you because it may help you fall asleep, but it won't help you get good quality sleep.

Has alcohol affected your diet efforts? Tweet me @harleypasternak – and let me know.

Check back every Wednesday for more insider tips from celebrity trainer Harley Pasternak on Hollywood's hottest bodies – and learn how to get one yourself! Plus: Follow Harley on Twitter at @harleypasternak

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Wall Street stymied as investors lack catalysts to trade

NEW YORK (Reuters) - U.S. stocks were little changed on Wednesday as investors, without any major economic reports to guide them, awaited fresh incentives to trade after rallies took the S&P 500 to five-year highs.

Transportation stocks were among the worst performers, weighed down by a 10 percent drop in CH Robinson Worldwide to $60.40 after the freight transport company posted a lower-than-expected adjusted quarterly profit.

The Dow Jones Transportation index <.djt> shed 0.3 percent after closing at a record high Tuesday for a gain of more than 10 percent in 2013.

The benchmark S&P 500 index has advanced 6 percent this year, climbing to its highest since December 2007. The Dow industrials <.dji> have risen above 14,000 recently, making it a challenge for investors to push stocks higher in the absence of strong positive catalysts.

"Overall, we believe that the next near-term market dip should provide an opportunity to buy stocks ahead of rallies higher in the coming months, but we are skeptical about the long-term sustainability of these gains due to the maturing age of the bull market," said Ari Wald, equity research analyst at C&Co\PrinceRidge in New York.

The Dow Jones industrial average <.dji> was up 5.28 points, or 0.04 percent, at 13,984.58. The Standard & Poor's 500 Index <.spx> was up 0.56 point, or 0.04 percent, at 1,511.85. The Nasdaq Composite Index <.ixic> was up 1.67 points, or 0.05 percent, at 3,173.25.

The tech-heavy Nasdaq index was supported by Apple Inc , which rose 1.1 percent to $462.62.

Walt Disney Co was among the bright spots, up 1.1 percent at $60.31, after the company beat estimates for quarterly adjusted earnings and gave an optimistic outlook for the next few quarters.

According to Thomson Reuters data through Wednesday morning, of 301 companies in the S&P 500 <.spx> that have reported earnings, 68.1 percent have exceeded analysts' expectations, above a 62 percent average since 1994 and 65 percent over the past four quarters. In terms of revenue, 65.8 percent of companies have topped forecasts.

Looking ahead, fourth-quarter earnings for S&P 500 companies are expected to grow 4.7 percent, according to the data, above a 1.9 percent forecast at the start of the earnings season.

The benchmark S&P index rose 1.04 percent Tuesday, its biggest percentage gain since a 2.5-percent advance on January 2 after lawmakers agreed on a temporary delay of the "fiscal cliff."

Ralph Lauren Corp climbed 8 percent to $178.15 as the best performer on the S&P 500 after reporting renewed momentum in its holiday-quarter sales and profits.

Time Warner Inc jumped 4.4 percent to $52.15 after reporting higher fourth-quarter profit that beat Wall Street estimates, as growth in its cable networks offset declines in its film, TV entertainment and publishing units.

Visa , the world's largest credit and debit card network, is expected to report earnings per share of $1.79 for its first quarter, up from $1.49 a year earlier. Smaller rival MasterCard MA.N recently reported better-than-expected results but said its revenue growth could slow in the first half of the year due to economic uncertainty.

(Editing by Bernadette Baum and Kenneth Barry)

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The Lede Blog: North Korean Propaganda Video Uses 'Call of Duty' and 'We Are the World' to Imagine a Brighter World, Without Manhattan

When aliens strike, the climate goes berserk, the Russians invade, an asteroid threatens the Earth, New York City is often the first place to be destroyed. Hollywood has long used the city’s skyline to demonstrate what destruction looks like in action movies and video games. It seems as if North Korea, in seeking to show how an assault on America would play out, also has Manhattan squarely in its cross hairs.

A new propaganda video, posted Sunday on a Web site and a YouTube channel that serve as outlets for North Korean state media, shows a computer-animated representation of Lower Manhattan in flames as bombs rain down.

A video posted on a North Korean YouTube channel this week features images of Manhattan in flames.

As a blogger for Kotaku reports, the attack on Manhattan is lifted straight from the video game “Call of Duty: Modern Warfare 3,” and unfolds as a sweeping instrumental version of “We Are the World” plays in the background.

The cartoonish propaganda clip is one of a slew of recent videos that have been released by North Korea to promote the country’s missile program. Although the video might make some observers laugh, the tension over North Korea’s nuclear ambitions and missile program is deadly serious.

The United Nations Security Council voted on Jan. 22 to tighten sanctions against North Korea as punishment for a Dec. 12 rocket launch. In response, the North vowed to expand its nuclear program “both quantitatively and qualitatively” and conduct a third nuclear test at a “higher level.”

As our colleagues David Sanger and William Broad reported after December’s successful missile launch by North Korea, there is no evidence that the country currently has technology that can threaten the continental United States – much less New York.

Administration officials said that while the launching was successful — and advanced the North’s missile program — it was hardly a threat to the United States, despite a warning by Robert M. Gates in 2011, when he was secretary of defense, that the North would have a missile capable of reaching the United States by 2016.

The video begins with an image of a man in blue pajamas sleeping. He recounts a dream in words that appear on the screen. “I had a dream last night, a dream of soaring into space on board our Unha-9 rocket,” the man says.

Unha, Korean for galaxy, is the name of the North Korean rocket series. The latest one, launched in December, was the Unha-3. So the dreamer is imagining a future, more advanced version of the rocket. After first showing footage of a real rocket launch, the video shifts to animation.

“Our Kwangmyongsong-21 spacecraft got separated from the rocket and traveled through space,” he says.

Once again, the dream appears to show the advances North Korea hopes to make in the years to come. In December, the satellite launched by the North was rocket number 3. By the time the series reaches 21 in the man’s dream, the rocket looks like the American space shuttle. The animation at that point shows the spacecraft circling the globe in search of its target, the music from “We are the World” building as it moves closer to the United States.

“I see stars and the green Earth. I also see a unified Korea.” These words appear on screen as the video moves from animation back to real footage of people waving flags, in particular, a “Korea-is-one” flag. The video shows a unified, not divided, Korean Peninsula in blue, a symbol of Korean reunification.

Then the video shows an overhead image of New York draped in the American flag. “Meanwhile, I see black smoke rising somewhere in America,” the dreaming man says. “It appears that the headquarters of evil, which has had a habit of using force and unilateralism and committing wars of aggression, is going up in flames it itself has ignited.”

At this point in the video, the computer-animated scene copied from “Call of Duty” show Lower Manhattan in flames.

“Just imagine riding in a Korean spaceship. One day, my dream will come true,” the narrator says. “No matter how hard the imperialists try to isolate and stifle us, they will not stop our people’s path toward our final victory of achieving a unified, strong and prosperous Korea.”

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Tim McGraw Visits The Ellen DeGeneres Show - Sans Underwear!

By Maggie Coughlan

02/05/2013 at 01:45 PM EST

TMI, Tim McGraw!

Ellen DeGeneres has been known to hand out underwear with her show's name on it to her famous guests. And McGraw, who makes an appearance on Tuesday's episode, is seen wearing them in a photo taken while he was out for a jog.

"Are you wearing them right now?" DeGeneres asked the sexy country star, 45, who appeared on the latest issue of PEOPLE.

"No," McGraw answered.

"Why not?" DeGeneres asked.

"These pants were too tight to put underwear on," he explained. "Now I've really embarrassed my daughters ... what was I supposed to say?"

"It's always good to be honest around here," DeGeneres said. "Well, you look good."

McGraw – who has three daughters (Gracie Katherine, 15, Maggie Elizabeth, 14, and Audrey Caroline, 11) with wife Faith Hill – also spoke on his decision to get sober.

"When it gets to the point where you think it’s affecting you adversely and it’s affecting your relationships adversely, it’s time to make a change and I thought it was," he said. "I also thought my girls are getting older and I certainly wanted to have some good solid ground to stand on when I started talking to them about their situations."

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