Dow, Nasdaq boosted by tech; S&P flat

NEW YORK (Reuters) - The Dow and Nasdaq edged higher on Wednesday, lifted by IBM and Google whose stronger-than-expected profits helped to soothe investors' concerns about the tech sector.


IBM's and Google's earnings, released after Tuesday's close, were the latest reassuring fourth-quarter results that pushed the Dow and S&P 500 to five-year highs as worries about the "fiscal cliff" and euro zone debt crisis faded and earnings became the market's main focus.


International Business Machines Corp forecast better-than-anticipated 2013 results and also posted fourth-quarter earnings and revenue that beat expectations.


Shares in the world's largest technology services company, climbed 5.5 percent to $206.87, its biggest advance since July, making it by far the largest boost to the Dow.


Worries about the profit potential in the tech sector had increased amid questions about waning demand for Apple Inc products and a weak outlook from Intel Corp last week.


Also helping to boost the tech sector was a 6.1 percent jump in Internet search company Google Inc to $746.02. The Internet search company reported its core business outpaced expectations and revenue was higher than expected.


Despite a 1.3 percent gain in the S&P technology sector <.splrct>, gains on the broader S&P 500 index were limited a day after the benchmark index closed at a fresh 5-year high.


The recent gains have been largely fueled by a stronger than expected start to the earning season, pushing the benchmark S&P index near the 1,500 level, last reached on December 12, 2007, and may make additional gains harder to come by after a 4.6 increase for the month.


"This certainly is new air up here, you have to give it some time at this level," said Troy Logan, managing director and senior economist at Warren Financial Service in Exton, Pennsylvania.


"More fundamentally, there is less concern about Europe. You need less noise on the political front and the focus back on corporate American growing earnings."


With tech earnings strong, Thomson Reuters data through Wednesday shows that of the 99 S&P 500 companies that have reported earnings so far, 67.7 percent have topped expectations, above the 62 percent average since 1994 and the 65 percent average over the past four quarters.


The Dow Jones industrial average <.dji> gained 43.27 points, or 0.32 percent, to 13,755.48. The Standard & Poor's 500 Index <.spx> shed 1.32 points, or 0.09 percent, to 1,491.24. The Nasdaq Composite Index <.ixic> added 8.82 points, or 0.28 percent, to 3,152.00.


McDonald's slipped 0.3 percent to $92.63 after reporting a rise in fourth-quarter earnings, lifted by an increase in same-store sales. Fellow Dow component United Technology Corp's earnings fell from the prior year, hurt by large restructuring charges. Shares edged up 0.4 percent to $87.86.


On the downside, leather-goods maker Coach Inc plunged 14.8 percent to $51.75 as the S&P's worst performer after reporting sales that missed expectations. The S&P consumer discretionary sector <.splrcd> lost 0.5 percent.


After the market closes, investors will scour Apple's results for signs it can continue to grow at an accelerated pace. The stock has been pressured recently by questions raised about demand for Apple's products. The stock has fallen 5 percent since the start of the year, compared with gains of 4.6 percent in the S&P 500. It rose 0.4 percent to $507.04 on Wednesday.


"Pretty much all eyes are on Apple to see what they are going to do this evening. What happened to Apple is they had some misses in the second and third quarters of 2012 and the explanation was anticipation of the new iPhone 5, so this quarter they really have to deliver on that story," Logan said.


Overall, S&P 500 fourth-quarter earnings rose 2.8 percent, according to Thomson Reuters data. That estimate is above the 1.9 percent forecast from the start of earnings season, but well below the 9.9 percent fourth-quarter earnings forecast from October 1, the data showed.


Republican leaders in the U.S. House of Representatives aim on Wednesday to pass a bill to extend the U.S. debt limit by nearly four months, to May 19. The White House welcomed the move, saying it would remove uncertainty about the issue.


The debt limit issue has hung over the market for weeks, with many investors worried that if no deal is reached to raise the limit, it could have a negative impact on the economy.


(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)



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The Lede Blog: Prince Harry Compares War to PlayStation and Taliban Is Not Amused

A Taliban spokesman said on Tuesday that Prince Harry must have “mental problems,” following the broadcast of remarks by the royal in which he said that killing militants from an Apache helicopter was similar to playing video games.

As soon as Britain’s ministry of defense announced on Monday that Prince Harry had left Afghanistan, ending his four-month deployment there, the British news media rushed to broadcast video of the royal officer at war, which was recorded with his cooperation on the condition that it not be released until his tour was over.

Britain’s Channel 4 News broke into its bulletin on Monday night just minutes after the announcement to broadcast its edit of the footage, which was shot last month at Camp Bastion in Afghanistan’s Helmand Province by the British Press Association.

A video report from Britain’s Channel 4 News shot during Prince Harry’s recent deployment to Afghanistan.

The Channel 4 News report drew attention to how frequently the prince, whose mother was being chased by photographers when she died in a fatal car accident, mentioned his distaste for the British press.

At one stage in the interview, Prince Harry said that he was not troubled by killing militants. “Take a life to save a life,” he said. “If there’s people trying to do bad stuff to our guys, then we’ll take them out of the game.”

In another edit of the footage, posted online by The Guardian, Prince Harry, who is known as Captain Wales in the army, explained that he was glad to have been “pushed forward to the front seat,” the one reserved for the attack helicopter’s gunner. That was, he said, “a joy for me because I’m one of those people that loves playing PlayStation and Xbox, so with my thumbs I like to think I’m probably quite useful — if you ask the guys I thrash them at FIFA the whole time,” referring to a popular video game series.

“This is a serious war, a historic war, resistance for us, for our people,” a Taliban spokesman, Zabiullah Mujahid, told Agence France-Presse in response, “and now this prince comes and compares this war with his games, PlayStation or whatever he calls it.”

But the spokesman added, “we don’t take his comments very seriously, as we have all seen and heard that many foreign soldiers, occupiers who come to Afghanistan, develop some kind of mental problems on their way out.”

In another part of the interview, posted online by The Telegraph, Prince Harry said that his brother, Prince William, was jealous of him. “He’d love to be out here and, to be honest with you, I don’t see why he couldn’t,” Harry said. “No one knows who’s in the cockpit. Yes you get shot at, but, you know, if the guys who are doing the same job as us are being shot at on the ground, then I don’t think there’s anything wrong with us being shot at as well. Yeah, people back home might have issues with that, but we’re not special.”

Video of remarks by Prince Harry about how much his brother would like to serve in Afghanistan.

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Is Facebook envy making you miserable?






LONDON (Reuters) – Witnessing friends’ vacations, love lives and work successes on Facebook can cause envy and trigger feelings of misery and loneliness, according to German researchers.


A study conducted jointly by two German universities found rampant envy on Facebook, the world’s largest social network that now has over one billion users and has produced an unprecedented platform for social comparison.






The researchers found that one in three people felt worse after visiting the site and more dissatisfied with their lives, while people who browsed without contributing were affected the most.


“We were surprised by how many people have a negative experience from Facebook with envy leaving them feeling lonely, frustrated or angry,” researcher Hanna Krasnova from the Institute of Information Systems at Berlin’s Humboldt University told Reuters.


“From our observations some of these people will then leave Facebook or at least reduce their use of the site,” said Krasnova, adding to speculation that Facebook could be reaching saturation point in some markets.


Researchers from Humboldt University and from Darmstadt’s Technical University found vacation photos were the biggest cause of resentment with more than half of envy incidents triggered by holiday snaps on Facebook.


Social interaction was the second most common cause of envy as users could compare how many birthday greetings they received to those of their Facebook friends and how many “likes” or comments were made on photos and postings.


“Passive following triggers invidious emotions, with users mainly envying happiness of others, the way others spend their vacations and socialize,” the researchers said in the report “Envy on Facebook: A Hidden Threat to Users’ Life Satisfaction?” released on Tuesday.


“The spread and ubiquitous presence of envy on Social Networking Sites is shown to undermine users’ life satisfaction.”


They found people aged in their mid-30s were most likely to envy family happiness while women were more likely to envy physical attractiveness.


These feelings of envy were found to prompt some users to boast more about their achievements on the site run by Facebook Inc. to portray themselves in a better light.


Men were shown to post more self-promotional content on Facebook to let people know about their accomplishments while women stressed their good looks and social lives.


The researchers based their findings on two studies involving 600 people with the results to be presented at a conference on information systems in Germany in February.


The first study looked at the scale, scope and nature of envy incidents triggered by Facebook and the second at how envy was linked to passive use of Facebook and life satisfaction.


The researchers said the respondents in both studies were German but they expected the findings to hold internationally as envy is a universal feeling and possibly impact Facebook usage.


“From a provider’s perspective, our findings signal that users frequently perceive Facebook as a stressful environment, which may, in the long-run, endanger platform sustainability,” the researchers concluded.


(Reporting by Belinda Goldsmith, editing by Paul Casciato)


Internet News Headlines – Yahoo! News





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New Kids on the Block Hit the Road with 98 Degrees & Boyz II Men






Only on People.com








01/22/2013 at 12:00 PM EST







New Kids on the Block: Joey McIntyre, Donnie Wahlberg, Jordan Knight, Danny Wood and Jonathan Knight


Angela Weiss/WireImage


The New Kids on the Block are back!

The band plans to bring some heat this summer when they hit the road for a brand new headlining tour – and they're bringing along a few famous friends: 98 Degrees and Boyz II Men will open all shows on the jaunt, which kicks off May 31 in Uncasville, Conn.

"It just seems like we are getting better and better," Joey McIntyre, 40, tells PEOPLE. "We're excited to get out there, rock out and have fun."

Along with the announcement of their tour, the multi-platinum selling group will release 10 – their first new album in over four years – on April 2.

"We have been doing this for almost 25 years," says McIntyre. "So it's important that the music and the lyrics speak to who we are as grown men – and the album reflects that."

But that doesn't mean fans won't see some familiar moves.

"There is a lot of nostalgia and we embrace that," says the singer. "But it always feels young and fresh. I guess that's one of the great things about being in the music business is that you never have to quite grow up."

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Flu season fuels debate over paid sick time laws


NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.


A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.


"It's a balancing act" between physical health and financial well-being, she said.


An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.


Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.


Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.


The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.


Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.


But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.


Michael Sinensky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."


"We're at the point, right now, where we cannot afford additional social initiatives," said Sinensky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.


Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.


To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.


"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.


Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.


Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.


In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.


The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.


Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.


While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.


"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."


___


Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.


___


Follow Jennifer Peltz at http://twitter.com/jennpeltz


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Dow, S&P 500 edge higher as earnings eyed


NEW YORK (Reuters) - Stocks mostly edged up on Tuesday after ending last week at five-year highs, but gains were limited with investors showing caution as the earnings season picks up speed.


Both the Dow and the Standard & Poor's 500 closed at five-year highs on Friday, boosted by better-than-expected results in the early part of the earnings season. Although major companies have issued bullish statements, many investors remain wary that economic uncertainty in the fourth quarter dented earnings and revenues.


"The market is playing wait-and-see to see the way the earnings come in this week because you've got some biggies," said Fred Dickson, chief market strategist at D.A. Davidson & Co., in Lake Oswego, Oregon.


Recent concerns about waning demand for Apple Inc products and a weak outlook from Intel Corp have diminished optimism about the tech sector's prospects. The S&P technology sector index, down 0.4 percent, was the worst performing of the 10 major S&P 500 sectors on Tuesday.


Major tech companies scheduled to report results after the market's close on Tuesday include Google Inc, International Business Machines and Texas Instruments. Tech bellwethers Apple and Microsoft Corp are also set to report earnings this week.


"Any one of those, if there is a big surprise up or down, could shift the balance in the markets. So investors are being far more cautious than normal, especially with the market averages having broken out to five-year highs," Dickson said.


The Dow Jones industrial average gained 31.32 points, or 0.23 percent, to 13,681.02. The Standard & Poor's 500 Index added 1.48 points, or 0.10 percent, to 1,487.46. The Nasdaq Composite Index slipped 4.42 points, or 0.14 percent, to 3,130.29.


Four Dow components reported early on Tuesday, and three rose on the results. Insurer Travelers Cos was the standout, climbing 2.6 percent to $78.33 and giving the biggest boost to the Dow after the company forecast higher premiums across its business.


DuPont, the largest U.S. chemical company by market capitalization, reported revenue that exceeded Wall Street's expectations, while Verizon Communications Inc also posted revenue that beat forecasts.


Shares of DuPont shot up 1.6 percent to $47.75 while Verizon's stock rose 0.9 percent to $42.94.


On the downside, shares of Johnson & Johnson, the diversified health company, slipped 0.6 percent to $72.79 after the Dow component forecast 2013 earnings below expectations.


According to Thomson Reuters data through Tuesday morning, of the 74 companies in the S&P 500 that have reported earnings so far, 62.2 percent have topped expectations, roughly even with the 62 percent average since 1994, but below the 65 percent average over the past four quarters.


Overall, S&P 500 fourth-quarter earnings are forecast to have risen 2.6 percent. That estimate is above the 1.9 percent forecast from the start of earnings season, but well below the 9.9 percent fourth-quarter earnings forecast from October 1, the data showed.


Economic data from the National Association of Realtors showed existing-home sales unexpectedly fell 1 percent in December, which was below expectations, but not a big enough dip to suggest the housing market's recovery may be in jeopardy.


Republican leaders in the U.S. House of Representatives said they aim on Wednesday to pass a nearly four-month extension of the U.S. debt limit, allowing the government to borrow enough to meet its obligations during that period.


Markets have recently been pressured by uncertainty stemming from Washington about the federal debt limit and spending cuts that could hamper U.S. growth.


U.S.-listed shares of Research in Motion jumped 9.6 percent to $17.36 a day after its chief executive said the Canadian company may consider strategic alliances with other companies after the launch of devices powered by RIM's new BlackBerry 10 operating system.


(Editing by Jan Paschal)



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Algerian Prime Minister Says at Least 37 Foreigners Dead in Siege


Anis Belghoul/Associated Press


Algerian Army vehicles on Sunday near a remote town in southeastern Algeria where hostages were taken in a four-day ordeal.







ALGIERS — In his first official tally of the deadly scope of the Algerian hostage crisis, Prime Minister Abdelmalek Sellal said Monday that the known death toll among the foreign captives had risen steeply to 37 from 23, and that five additional foreigners remained unaccounted for.




In a televised news conference, Mr. Sellal also said that 29 militants were killed and that three were captured alive during the four-day ordeal that terrorized a remote Algerian gas field refining site. Two of the attackers were Canadian, he contended.


Algerian officials had been forecasting that the tally of foreign dead would rise from a preliminary estimate of 23, a concern that was reinforced by reports that a significant number of hostages from Japan and the Philippines had been killed at the site. On Monday, the Algerian prime minister said the dead came from eight different nations, without specifying which ones. He also said that one Algerian hostage had been killed as well.


Mr. Sellal was more specific about the attackers, saying at the news conference that they had come from Egypt, Canada, Mali, Niger, Mauritania and Tunisia, although it was unclear how he knew for sure. Algerian officials have been saying that few if any of the attackers are believed to have been Algerian.


The prime minister asserted that the attackers had started out in northern Mali — a claim made by the attackers themselves, which had initially been dismissed by the Algerian authorities as far-fetched because the Malian border is hundreds of miles away.


But the prime minister added that the attackers had ultimately crossed into Algeria through its eastern border with Libya, which is much closer to the refining site. If true, it would serve as a powerful a reminder of Libya’s instability since the overthrow of Col. Muammar el-Qaddafi more than a year ago, and of the enormous distances that complicate the monitoring of national boundaries in the vast Sahara.


“We would need two NATOs to monitor our borders,” Mr. Sellal said.


He corroborated assertions made by other Algerian officials and accounts from freed hostages that the militants had intended to destroy the gas complex and had booby-trapped some hostages with explosives.


In all, the prime minister said, 790 workers were on the site, including 134 foreigners of 26 nationalities, when it was first seized by a heavily armed militant band in one of the most brazen assaults in years.


The prime minister’s news conference represented the most detailed Algerian tally of casualties in the days of alternating standoff and confrontation that began early on Wednesday as the raiders swept in from the desert to take over the internationally managed gas plant, hundreds of miles from Algiers.


Earlier Monday, the Philippine Foreign Affairs Department announced casualties among its citizens for the first time, saying six Filipino hostages had been killed and four were still missing.


Additionally, citing an unidentified government source, Reuters said Algeria had informed Japan that nine of its citizens had died — if corroborated, the highest death toll by a nation reported so far — while previous Japanese accounts had spoken of 10 unaccounted for. Officials in Tokyo declined to confirm those figures, but news reports quoted Prime Minister Shinzo Abe as saying that seven Japanese captives died and that three were still unaccounted for.


Japan’s NHK television interviewed an unidentified Algerian worker who escaped the gas plant. He said that not long after sporadic firing started, militants appeared, armed with machine guns, antitank rockets and antiaircraft missiles. He said the attackers were kind to Algerian staff members, who were given food and blankets. Their targets were the foreign workers, who were rounded up.


The first ones he saw killed were two Japanese and a Filipino, gunned down before his eyes. He said the militants made the foreign hostages wear bombs strapped onto their bodies. He fled during the army attack, and did not know if those foreigners had survived.


The standoff between several dozen radical Islamists and Algerian security services came to a bloody conclusion on Saturday when the Algerians assaulted the kidnappers’ last redoubt at the refining site, where hundreds of Algerian and scores of expatriate workers were employed.


The victims — from the United States, Britain, France, Japan and other countries — were killed after hours of harrowing captivity. An unknown number of the hostages died in the assault on Saturday; Algerian officials said they also killed most of the remaining hostage takers, who they said were followers of Mokhtar Belmokhtar, a warlord linked to Al Qaeda based in northern Mali. A regional Web site reported that he had issued a video claiming responsibility for the attack.


Adam Nossiter reported from Algiers, and Alan Cowell from London. Reporting was contributed by Steven Erlanger and Scott Sayare from Paris, Alan Cowell and Stanley Reed from London, Floyd Whaley from Manila, Martin Fackler from Tokyo, Eric Schmitt and Michael R. Gordon from Washington, and Michael Schwirtz from New York.



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Atari US files for Ch. 11 to separate from parent






NEW YORK (AP) — Video game maker Atari’s U.S. operations have filed for Chapter 11 bankruptcy protection in an effort to separate from their French parent company.


In a statement, Atari says the move is necessary to secure investments it needs to grow in mobile and digital gaming.






Atari’s U.S. operations have shifted to focus on digital games and licensing, including developing mobile games, and have become a growth engine for its owner. France’s Infogrames Entertainment first took a stake in Atari in 2000. It acquired the remaining stake in 2008 and changed its name to Atari S.A.


But the U.S. operations have been better performing than the rest of the company. In fiscal 2012 digital and licensing revenue both grew significantly and contributed 70 percent of revenue, while sales in bricks-and-mortar stores declined.


In December, Atari S.A. said a credit agreement it entered into with investor BlueBay would lapse at the end of the year and the company was seeking other ways to raise capital. It added that it expects to report a “significant loss” for fiscal 2012.


Atari, which turned 40 last year, was a videogame pioneer with games like “Pong” and “Centipede,” but has changed owners several times amid financial problems. In its filing with the U.S. Bankruptcy Court in the Southern District of New York, Atari said it had $ 1 million to $ 10 million in assets and $ 10 million to $ 50 million in debt. It is seeking approval for $ 5.25 million in debtor-in-possession financing from private investment firm Tenor Capital Management.


Atari said it expects to sell its assets or confirm a restructuring plan within the next three to six months.


Gaming News Headlines – Yahoo! News





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Michelle, Sasha and Malia Obama Don Colorful Coats at Inauguration















01/21/2013 at 12:15 PM EST







From left: Sasha, Malia and Michelle Obama on Jan. 21, 2013


Mark Wilson/Getty


It's a big day for the Obamas.

While watching President Barack Obama be sworn in publicly for his second term in office, Michelle Obama and their daughters, Sasha and Malia, looked on proudly from the platform in front of the Capitol.

But not all eyes were on the Commander in Chief, who officially started his term on Sunday. Many Inauguration watchers are eager to see what the women in his life are wearing.

The First Lady, who is sporting a new do, dressed in a navy Thom Browne coat and dress with the fabric inspired by the textures of a man's silk tie.

She accessorized with Reed Krakoff boots and a jeweled belt and gloves from J. Crew and earrings designed by Cathy Waterman. At the end of the Inaugural festivities, Michelle's entire outfit will go to the National Archives.

Malia, 14, also wore an ensemble by J. Crew, including the Double-cloth Lady coat in plum. And her sister Sasha, 11, wore a Kate Spade coat and dress.

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Flu season fuels debate over paid sick time laws


NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.


A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.


"It's a balancing act" between physical health and financial well-being, she said.


An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.


Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.


Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.


The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.


Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.


But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.


Michael Sinensky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."


"We're at the point, right now, where we cannot afford additional social initiatives," said Sinensky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.


Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.


To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.


"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.


Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.


Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.


In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.


The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.


Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.


While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.


"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."


___


Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.


___


Follow Jennifer Peltz at http://twitter.com/jennpeltz


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