"Cliff" concerns give way to earnings focus

NEW YORK (Reuters) - Investors' "fiscal cliff" worries are likely to give way to more fundamental concerns, like earnings, as fourth-quarter reports get under way next week.

Financial results, which begin after the market closes on Tuesday with aluminum company Alcoa , are expected to be only slightly better than the third-quarter's lackluster results. As a warning sign, analyst current estimates are down sharply from what they were in October.

That could set stocks up for more volatility following a week of sharp gains that put the Standard & Poor's 500 index <.spx> on Friday at the highest close since December 31, 2007. The index also registered its biggest weekly percentage gain in more than a year.

Based on a Reuters analysis, Europe ranks among the chief concerns cited by companies that warned on fourth-quarter results. Uncertainty about the region and its weak economic outlook were cited by more than half of the 25 largest S&P 500 companies that issued warnings.

In the most recent earnings conference calls, macroeconomic worries were cited by 10 companies while the U.S. "fiscal cliff" was cited by at least nine as reasons for their earnings warnings.

"The number of things that could go wrong isn't so high, but the magnitude of how wrong they could go is what's worrisome," said Kurt Winters, senior portfolio manager for Whitebox Mutual Funds in Minneapolis.

Negative-to-positive guidance by S&P 500 companies for the fourth quarter was 3.6 to 1, the second worst since the third quarter of 2001, according to Thomson Reuters data.

U.S. lawmakers narrowly averted the "fiscal cliff" by coming to a last-minute agreement on a bill to avoid steep tax hikes this weeks -- driving the rally in stocks -- but the battle over further spending cuts is expected to resume in two months.

Investors also have seen a revival of worries about Europe's sovereign debt problems, with Moody's in November downgrading France's credit rating and debt crises looming for Spain and other countries.

"You have a recession in Europe as a base case. Europe is still the biggest trading partner with a lot of U.S. companies, and it's still a big chunk of global capital spending," said Adam Parker, chief U.S. equity strategist at Morgan Stanley in New York.

Among companies citing worries about Europe was eBay , whose chief financial officer, Bob Swan, spoke of "macro pressures from Europe" in the company's October earnings conference call.

REVENUE WORRIES

One of the biggest worries voiced about earnings has been whether companies will be able to continue to boost profit growth despite relatively weak revenue growth.

S&P 500 revenue fell 0.8 percent in the third quarter for the first decline since the third quarter of 2009, Thomson Reuters data showed. Earnings growth for the quarter was a paltry 0.1 percent after briefly dipping into negative territory.

On top of that, just 40 percent of S&P 500 companies beat revenue expectations in the third quarter, while 64.2 percent beat earnings estimates, the Thomson Reuters data showed.

For the fourth quarter, estimates are slightly better but are well off estimates for the quarter from just a few months earlier. S&P 500 earnings are expected to have risen 2.8 percent while revenue is expected to have gone up 1.9 percent.

Back in October, earnings growth for the fourth quarter was forecast up 9.9 percent.

In spite of the cautious outlooks, some analysts still see a good chance for earnings beats this reporting period.

"The thinking is you need top line growth for earnings to continue to expand, and we've seen the market defy that," said Mike Jackson, founder of Denver-based investment firm T3 Equity Labs.

Based on his analysis, energy, industrials and consumer discretionary are the S&P sectors most likely to beat earnings expectations in the upcoming season, while consumer staples, materials and utilities are the least likely to beat, Jackson said.

Sounding a positive note on Friday, drugmaker Eli Lilly and Co said it expects profit in 2013 to increase by more than Wall Street had been forecasting, primarily due to cost controls and improved productivity.

(Reporting By Caroline Valetkevitch; Editing by Kenneth Barry)

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Police Captain in Benghazi Is Abducted

BENGHAZI, Libya (Reuters) — Police officials said Thursday that they were searching for the chief of Benghazi’s criminal investigations unit, who was seized by armed men the night before.

The chief, Capt. Abdel-Salam al-Mahdawi, had been ready to identify suspects in the death of a former police chief, officials said. He was taken by force “under the threat of weapons from a location close to the criminal investigation police offices,” said one police official who requested anonymity because he was not authorized to speak to the news media.

The former police chief, Faraj al-Deirsy, was shot to death in front of his home in November, according to the police and Interior Ministry officials.

Benghazi, the cradle of an armed uprising that led to the end of Col. Muammar el-Qaddafi’s rule in Libya, has been plagued by poor security and the assassination of police and military officers by militias. The United States ambassador to Libya and three other Americans were killed in an attack on the United States diplomatic mission in Benghazi in September.

A body charred by hydrochloric acid was found in the city’s Buhmeida district, Chief Mustafa al-Regayig of the Benghazi police told state radio. It has not been identified yet, he said.

“We can’t confirm or deny that the body is of Captain Mahdawi at this time,” he said.

Police investigators and legal experts have avoided taking on that case because they say they have not been guaranteed protection from groups they believe carried out the attack.

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Did Microsoft Just Announce the Next Xbox with a Countdown? Probably.

Go countdowns, saving marketing departments untold piles of cash! Microsoft’s Larry Hryb, colloquially known by his Xbox LIVE handle “Major Nelson,” just threw one up on his blog, and it’s causing precisely the sort of speculative stir the company doubtless intended.

“And it’s on…” reads the ultra-austere post, followed by a simple Flash-based timer titled “Counting down to E3 2013″ (cribbed from a generic countdown-building site).

“O rly?” as a certain memetic predator might say.

I won’t speculate past the probability of the new console itself — everything I’ve noticed about specs and pricing amounts to echo chamber gossip. If you’d rather just goof around, hop on over to NeoGAF, where gamers go mostly to make fun of each other (and everything between), and you’ll find a rollicking thread full of cracks, quips, the usual goofy/creepy animated GIFs and occasional chants of “Let’s go, Durango” (“Durango” is supposedly what the next Xbox’s development kits are codenamed).

Could the countdown be to anything but the next Xbox? At this point, much as I’d like to see Microsoft wait another year or two before introducing new hardware to give developers more time to do amazing things with the Xbox 360′s more than competent internals, and as gimmicky as countdowns are, this one’s punchline feels inexorable.

Besides, imagine the disappointment in five months if it turned out to be simply a new franchise, the next Halo or heaven forbid, a standalone “Kinect 2.”

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Alison Sweeney Blogs: Biggest Loser's Kid Contestants Will Inspire Change

TV Watch

The Biggest Loser

By Alison Sweeney

01/04/2013 at 12:55 PM EST

Alison Sweeney hosts NBC's The Biggest Loser and is the award-winning star of Days of Our Lives, in addition to being an author, director, producer, wife and mom. Like she has for the past two seasons, Alison will blog each week about the latest episode of The Biggest Loser. Follow her on Twitter @Ali_Sweeney

Happy New Year!

I'm in New York for an appearance on Today to talk about the season 14 of The Biggest Loser. Having taken some time between seasons, I have to say, I really missed being on the Ranch and with the show trainers and contestants. When I introduced Bob Harper and Dolvett Quince to the crowd the first day of production, and then welcomed back Jillian Michaels, the reaction was exhilarating. Then, to welcome such a great group of contestants and surprise the audience with our three kids was AWESOME!

The childhood obesity epidemic in our country is frightening to me, particularly as a mom to two young children. I was heartbroken a few seasons ago when Max Morelli couldn't be part of the show because he was too young. I'm so glad the producers figured out a way for kids who want help to receive that help from the best in the business. These kids truly can inspire a change.

As I mentioned on The Ellen DeGeneres Show yesterday, my family and I spent the holidays skiing and snowboarding in Mammoth in California, and let me tell you – it was incredible! A gorgeous setting, tons of outdoor activities and waking up to snow on Christmas morning was just incredible. And between shoveling snow and hiking up the hill for a rogue snowboard, I got in several pretty tough workouts. At one point, Ben (my son) was so soaked from playing in the snow that I thought his clothes were going to freeze while he was wearing them!

We came back to Los Angeles a bit early for me to start 2013 doing the work that I love. First, I co-hosted the Tournament of Roses Parade for NBC with Al Roker. Having grown up in Pasadena, and having gone to the parade each year as a kid, the opportunity to co-host was one I couldn't pass up. The morning was definitely a very early one (which was a great excuse to have a quiet New Year's Eve at home with my family). Each of the floats was more gorgeous than the next and I loved the Dr. Seuss theme. My dad brought my kids to the route, where they got to come see me getting ready, and gushed about how amazing the floats are close-up. The horses were Megan's favorites, of course!

Yesterday's interview with Ellen was the first time I've seen her since our Jenga rematch. I never know what Ellen has in store for me when I'm on the show but I do know that I always have a good time while there. I had no idea we were going to play Guesstures. Ha! What fun. I love visiting Ellen. I always love reading your responses to our conversations on Twitter and Facebook.

Have you seen promos for the new season of The Biggest Loser? Are you excited for the show's return on Sunday (9 p.m. ET) and Monday (8 p.m. ET)? Are you ready to join Challenge America when the show premieres on Sunday and unlock the secrets to the Ranch? If so, you can pre-register now at biggestloser.com. Also make sure to follow me at @Ali_Sweeney and keep me posted on your thoughts throughout the season (or just laugh at some of the funny stuff I Tweet!).

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Indian court to rule on generic drug industry

NEW DELHI (AP) — From Africa's crowded AIDS clinics to the malarial jungles of Southeast Asia, the lives of millions of ill people in the developing world are hanging in the balance ahead of a legal ruling that will determine whether India's drug companies can continue to provide cheap versions of many life-saving medicines.

The case — involving Swiss drug maker Novartis AG's cancer drug Glivec — pits aid groups that argue India plays a vital role as the pharmacy to the poor against drug companies that insist they need strong patents to make drug development profitable. A ruling by India's Supreme Court is expected in early 2013.

"The implications of this case reach far beyond India, and far beyond this particular cancer drug," said Leena Menghaney, from the aid group Doctors Without Borders. "Across the world, there is a heavy dependence on India to supply affordable versions of expensive patented medicines."

With no costs for developing new drugs or conducting expensive trials, India's $26 billion generics industry is able to sell medicine for as little as one-tenth the price of the companies that developed them, making India the second-largest source of medicines distributed by UNICEF in its global programs.

Indian pharmaceutical companies such as Cipla, Cadila Laboratories and Lupin have emerged over the past decade as major sources of generic cancer, malaria, tuberculosis and AIDS drugs for poor countries that can't afford to pay Western prices.

The 6-year-old case that just wrapped up in the Supreme Court revolves around a legal provision in India's 2005 patent law that is aimed at preventing companies from getting fresh patents for making only minor changes to existing medicines — a practice known as "evergreening."

Novartis' argued that a new version of Glivec — marketed in the U.S. as Gleevec — was a significant change from the earlier version because it was more easily absorbed by the body.

India's Patent Controller turned down the application, saying the change was an obvious development, and the new medicine was not sufficiently distinct from the earlier version to warrant a patent extension.

Patient advocacy groups hailed the decision as a blow to "evergreening."

But Western companies argued that India's generic manufacturers were cutting the incentive for major drug makers to invest in research and innovation if they were not going to be able to reap the exclusive profits that patents bring.

"This case is about safeguarding incentives for better medicines so that patients' needs will be met in the future," says Eric Althoff, a Novartis spokesman.

International drug companies have accused India of disregarding intellectual property rights, and have pushed for stronger patent protection that would weaken India's generics industry.

Earlier this year, an Indian manufacturer was allowed to produce a far cheaper version of the kidney and liver cancer treatment sorefinib, manufactured by Bayer Corp.

Bayer was selling the drug for about $5,600 a month. Natco, the Indian company, said its generic version would cost $175 a month, less than 1/30th as much. Natco was ordered to pay 6 percent in royalties to Bayer.

Novartis says the outcome of the new case will not affect the availability of generic versions of Glivec because it is covered by a grandfather clause in India's patent law. Only the more easily absorbed drug would be affected, Althoff said, adding that its own generic business, Sandoz, produces cheap versions of its drugs for millions across the globe.

Public health activists say the question goes beyond Glivec to whether drug companies should get special protection for minor tweaks to medicines that others could easily have uncovered.

"We're looking to the Supreme Court to tell Novartis it won't open the floodgates and allow abusive patenting practices," said Eldred Tellis, of the Sankalp Rehabilitation Centre, a private group working with HIV patients.

The court's decision is expected to be a landmark that will influence future drug accessibility and price across the developing world.

"We're already paying very high prices for some of the new drugs that are patented in India," said Petros Isaakidis, an epidemiologist with Doctors Without Borders. "If Novartis' wins, even older medicines could be subject to patenting again, and it will become much more difficult for us in future to provide medicines to our patients being treated for HIV, hepatitis and drug resistant TB."

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Wall Street mixed following jobs, ISM data reports

NEW YORK (Reuters) - Stocks firmed on Friday after a jobs report showed the pace of hiring met expectations by easing slightly in December, but gave indications of momentum in the labor market recovery.

The market also reacted modestly to data from the Institute for Supply Management, which showed the U.S. service sector grew at its fastest pace in 10 months in December, boosted by a rise in new orders.

"The jobs number today was somewhat benign, it was pretty close to what estimates were, so there wasn't much to draw out volatility from that report," said Gordon Charlop, managing director at Rosenblatt Securities in New York.

"I get the sense we're just sort of going to digest the events of earlier this week," he said, referring to the "fiscal cliff" deal in Washington that averted a possible recession.

The S&P saw its largest gain in over a year to start 2013 on Wednesday, following the agreement struck late Tuesday.

The Labor Department said payrolls outside the farming sector grew 155,000 last month, slightly below November's level. Gains in employment were distributed broadly throughout the economy, from manufacturing and construction to healthcare.

Shares of Apple Inc dropped 2.9 percent to $526.20, continuing its downward path of recent months and pressuring the Nasdaq.

Adding to concerns about the iPhone maker's ability to produce more innovative products going forward, rival Samsung Electronics Co Ltd is expected to widen its lead over Apple in global smartphone sales this year with 35 percent growth, propped up by a broad product lineup, according to market researcher Strategy Analytics.

The Dow Jones industrial average <.dji> was up 3.99 points, or 0.03 percent, at 13,395.35. The Standard & Poor's 500 Index <.spx> gained 2.38 points, or 0.16 percent, at 1,461.75. The Nasdaq Composite Index <.ixic> dropped 3.47 points, or 0.11 percent, at 3,097.10.

New orders received by U.S. factories were flat in November, missing expectations as demand for aircraft sank sharply, although a gauge of business spending plans gave a positive sign for the economy.

The lackluster economic growth indicated by the jobs data did not make a dent in the still-high U.S. unemployment rate, but it calmed fears about the possibility of the U.S. Federal Reserve ending its highly stimulative monetary policy.

Concerns about the endurance of the Fed's stimulus program prompted investors to pull back from the market Thursday after a two-day rally.

Minutes from the Fed's December policy meeting, released Thursday, showed Fed officials were increasingly worried about the risks of asset purchases to financial markets, though they looked set to continue with the open-ended stimulus program for now.

Some policymakers thought asset buying should be slowed or stopped before the end of 2013 while others highlighted the need for further stimulus. The Fed's policy of easy credit has helped push the S&P 500 to a 13.4 percent gain in 2012. Ending that policy would remove an incentive for investors to purchase riskier assets like stocks.

The S&P Energy sector index <.gspe> rose again, up 0.7 percent, led by a 3.5 percent gain in shares of Chesapeake Energy .

Eli Lilly and Co stock rose 3.9 percent to $51.68 after the pharmaceuticals maker said it expects its 2013 earnings to increase to $3.75 to $3.90 per share excluding items from $3.30 to $3.40 per share in 2012.

Shares of Mosaic Co gained 2.6 percent to $58.25 on the fertilizer producer's announcement that its quarterly operating profit fell 30 percent as international distributors delayed buying potash and phosphate to avert the price risk associated with the company's negotiations with China and India.

(Additional reporting by Angela Moon; Editing by Bernadette Baum and Nick Zieminski)

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Philippines May Curb Pursuit of Marcos’s Wealth

MANILA — A commission that has been pursuing the wealth of the former dictator Ferdinand E. Marcos should be abolished, despite the fact that much of his allegedly ill-gotten wealth has not been recovered, its chairman said on Wednesday.

Andres Bautista, the chairman of the Presidential Commission on Good Government, told reporters on Wednesday that he had recommended to President Benigno S. Aquino III that the special commission be phased out.

“Our recommendation was to wind down work,” said Mr. Bautista, noting that it is more efficient, and less costly for the government, if the Department of Justice handles the hunt for assets and any future cases against Marcos associates. In an earlier interview with Agence France-Presse, Mr. Bautista said, “It has become a law of diminishing returns at this point.”

Mr. Marcos led the Philippines from 1965 to until 1986, when he was overthrown by the bloodless popular revolt known as People Power. He declared martial law for part of his time in office and empowered his flamboyant wife, Imelda R. Marcos, to help lead the country.

Investigators have accused the Marcos family and its associates of plundering an estimated $10 billion from the Philippines while millions of Filipinos suffered in grinding poverty. In particular, Mr. Marcos’s wife was noted for extravagant displays of wealth that included lavish shopping trips to New York City with a huge entourage, spending millions on jewelry and art.

But in recent years, members of the Marcos family, including Mrs. Marcos, have taken prominent political posts, complicating the commission’s efforts.

The commission was created after the pro-democracy leader Corazon C. Aquino, the current president’s mother, came to power in 1986, and it was charged with the worldwide pursuit of the assets of the Marcos family and its associates.

According to one analyst, the abolition of the commission will effectively end the pursuit of that wealth — much of which, by all accounts, remains unrecovered.

“If a special body with extraordinary powers specifically tasked with finding the hidden wealth of Marcos cannot do it, then who else is going to?” asked Edre U. Olalia, the secretary general of the human rights organization National Union of Peoples’ Lawyers. “The government is giving up the fight.”

Mr. Olalia said a special commission was still needed because the Marcos family and its associates had the resources to hire top defense lawyers who could thwart or delay government cases. He said the family was expert at hiding wealth overseas and at using influence within the government to obstruct the investigations.

Mrs. Marcos, 83, is now a member of the House of Representatives, while her son, Ferdinand Marcos Jr., is a senator. Her daughter Imee Marcos is the governor of a northern province where the family is still well regarded.

Former President Marcos died in exile in the United States in 1989. Some of the largest companies in the Philippines are controlled by people who were his close associates, and have been accused by investigators of helping the family plunder billions from the country.

No one in the Marcos family, whose members all deny wrongdoing, has been convicted in connection with plundered wealth, nor have any associates.

“The Marcos family is back in power, and they have no fear of conviction,” Mr. Olalia said. “They are prancing around with their wealth, saying they are a poor family being prosecuted by the government.”

Mr. Bautista, the head of the commission, noted that the agency had recovered 164 billion pesos (about $4 billion) since its creation, including a 150-carat ruby and a diamond tiara, hundreds of millions of dollars hidden in Swiss bank accounts and prime real estate in New York City. It worked recently with New York authorities to indict Vilma Bautista, Mrs. Marcos’s former social secretary, and to recover several valuable paintings, including one from the water lily series by Claude Monet. Ms. Bautista and Mr. Bautista are not related.

President Aquino and both houses of the Philippine Congress would have to agree for the commission to be abolished. On Wednesday, lawmakers disagreed about its fate.

“Everybody agrees that the hunt and recovery was not going to be a walk in the park,” said Senator Francis Escudero. “But it’s disappointing that they are throwing in the towel.”

But another senator, Joker Arroyo, noted that the agency had been intended from the beginning to have a limited mandate.

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More leaked BlackBerry Z10 pictures emerge along with new details

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Jayden Lamb's Happy Spirit Kept Alive Through Strangers' Donations

Heroes Among Us

By Stephen M. Silverman

01/03/2013 at 12:45 PM EST

Jayden Lamb

Courtesy Jayden Lamb Family

Jayden Lamb was not even 9 years old when he died the week after last Thanksgiving, two years into his battle against cancer.

"It was a short life but a big impact," his father, Tom Lamb, of Midland, Mich., told the MLive.com. "There was something about him, I'm not sure if it was the message he had to get out, but he was so happy."

Those who loved Jayden – the many family and friends – have found a way to honor his memory: by spreading his message through the generous and genuine helping of others.

It began when Jayden's father and stepmother, Tom and Nicole Lamb, bought Starbucks coffee and pairs of shoes for strangers, intended as a means to ease their pain. There is also the Keep on Truckin' Team Jayden Facebook page, which allows others to follow their example.

More than 35,000 people have joined the Facebook page and shared countess stories of paying it forward in Jayden's name. Stories of pizzas, toys and gift cards being presented to total strangers started pouring in. One anonymous person even donated a diamond ring to the Salvation Army in Midland, reportedly worth $2,000, with a note attached that read: "Paying it Forward Jayden Style. God Bless," according to the Facebook page. And local TV station NBC 25 reports there have also been cases of $100 tips given in Jayden's name, too.

"It's amazing just to see all the people helping each other and seeing so many people compassionate in his name," said Tom Lamb. "To see the people he has touched, it's just unbelievable to me and my wife."

As the recipient of someone's generosity, Jennifer Campbell of Midland was able to provide Christmas for her four children. After visiting the local Kmart to cancel her holiday layaway, Campbell discovered that the entire balance, minus one penny, had already been paid off anonymously.

"I want to thank whoever saved my kids' Christmas," said Campbell. "Jayden is smiling so big in heaven right now."

His parents agree.

"It's extremely hard to lose a child to anything," said his dad. "I still feel a hole that hurts so bad, but maybe it is worth it, when people keep telling me they went to Christ because of Jayden. It makes me feel my child has a made a difference to people."

Know a hero? Send suggestions to heroesamongus@peoplemag.com. For more inspiring stories, read the latest issue of PEOPLE magazine

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Flu? Malaria? Disease forecasters look to the sky

NEW YORK (AP) — Only a 10 percent chance of showers today, but a 70 percent chance of flu next month.

That's the kind of forecasting health scientists are trying to move toward, as they increasingly include weather data in their attempts to predict disease outbreaks.

In one recent study, two scientists reported they could predict — more than seven weeks in advance — when flu season was going to peak in New York City. Theirs was just the latest in a growing wave of computer models that factor in rainfall, temperature or other weather conditions to forecast disease.

Health officials are excited by this kind of work and the idea that it could be used to fine-tune vaccination campaigns or other disease prevention efforts.

At the same time, experts note that outbreaks are influenced as much, or more, by human behavior and other factors as by the weather. Some argue weather-based outbreak predictions still have a long way to go. And when government health officials warned in early December that flu season seemed to be off to an early start, they said there was no evidence it was driven by the weather.

This disease-forecasting concept is not new: Scientists have been working on mathematical models to predict outbreaks for decades and have long factored in the weather. They have known, for example, that temperature and rainfall affect the breeding of mosquitoes that carry malaria, West Nile virus and other dangerous diseases.

Recent improvements in weather-tracking have helped, including satellite technology and more sophisticated computer data processing.

As a result, "in the last five years or so, there's been quite an improvement and acceleration" in weather-focused disease modeling, said Ira Longini, a University of Florida biostatistician who's worked on outbreak prediction projects.

Some models have been labeled successes.

In the United States, researchers at Johns Hopkins University and the University of New Mexico tried to predict outbreaks of hantavirus in the late 1990s. They used rain and snow data and other information to study patterns of plant growth that attract rodents. People catch the disease from the droppings of infected rodents.

"We predicted what would happen later that year," said Gregory Glass, a Johns Hopkins researcher who worked on the project.

More recently, in east Africa, satellites have been used to predict rainfall by measuring sea-surface temperatures and cloud density. That's been used to generate "risk maps" for Rift Valley fever — a virus that spreads from animals to people and in severe cases can cause blindness or death. Researchers have said the system in some cases has given two to six weeks advance warning.

Last year, other researchers using satellite data in east Africa said they found that a small change in average temperature was a warning sign cholera cases would double within four months.

"We are getting very close to developing a viable forecasting system" against cholera that can help health officials in African countries ramp up emergency vaccinations and other efforts, said a statement by one of the authors, Rita Reyburn of the International Vaccine Institute in Seoul, South Korea.

Some diseases are hard to forecast, such as West Nile virus. Last year, the U.S. suffered one of its worst years since the virus arrived in 1999. There were more than 2,600 serious illnesses and nearly 240 deaths.

Officials said the mild winter, early spring and very hot summer helped spur mosquito breeding and the spread of the virus. But the danger wasn't spread uniformly. In Texas, the Dallas area was particularly hard-hit, while other places, including some with similar weather patterns and the same type of mosquitoes, were not as affected.

"Why Dallas, and not areas with similar ecological conditions? We don't really know," said Roger Nasci of the Centers for Disease Control and Prevention. He is chief of the CDC branch that tracks insect-borne viruses.

Some think flu lends itself to outbreak forecasting — there's already a predictability to the annual winter flu season. But that's been tricky, too.

Seasonal flu reports come from doctors' offices, but those show the disease when it's already spreading. Some researchers have studied tweets on Twitter and searches on Google, but their work has offered a jump of only a week or two on traditional methods.

In the study of New York City flu cases published last month in the Proceedings of the National Academy of Sciences, the authors said they could forecast, by up to seven weeks, the peak of flu season.

They designed a model based on weather and flu data from past years, 2003-09. In part, their design was based on earlier studies that found flu virus spreads better when the air is dry and turns colder. They made calculations based on humidity readings and on Google Flu Trends, which tracks how many people are searching each day for information on flu-related topics (often because they're beginning to feel ill).

Using that model, they hope to try real-time predictions as early as next year, said Jeffrey Shaman of Columbia University, who led the work.

"It's certainly exciting," said Lyn Finelli, the CDC's flu surveillance chief. She said the CDC supports Shaman's work, but agency officials are eager to see follow-up studies showing the model can predict flu trends in places different from New York, like Miami.

Despite the optimism by some, Dr. Edward Ryan, a Harvard University professor of immunology and infectious diseases, is cautious about weather-based prediction models. "I'm not sure any of them are ready for prime time," he said.

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