Wall Street slips as "fiscal cliff" bargaining begins

NEW YORK (Reuters) - Stocks fell moderately on Friday in an atmosphere of caution as President Barack Obama and congressional leaders began bargaining on a deal to avoid major tax hikes and spending cuts.

The looming "fiscal cliff" has become the market's main focus since Obama's re-election on November 6, sending stocks lower on fears it could knock the economy into recession next year.

The S&P 500 was on track to decline for a fourth day.

"Today is the most important day of the week, as finally the president will have a coffee talk with both Republican and Democratic leaders. While both sides are now using the 'balance' word, the rhetoric seems to have only been on the tax side, which solves little or nothing on the spending side," said Peter Boockvar, managing director at Miller Tabak & Co in New York.

If investors like what they hear after the meeting, "the market is very oversold, sentiment is negative and is thus set up for a short-term bounce," he said.

Futures had indicated a higher open after the Wall Street Journal reported White House officials were in discussions that could indicate increased flexibility in negotiations with Republicans. Still, caution remains and the S&P 500 is on track to end the week at least 2 percent lower.

Citing sources familiar with the matter, the Journal said officials were in advanced, internal talks to replace spending cuts set to begin in January with a separate package of spending cuts and tax increases. The White House had no comment on the report.

Democrats and Republicans have recently appeared to dig in their heels into opposing positions, echoing last year's political impasse over raising the U.S. debt ceiling.

The S&P is down 4.3 percent over the past two weeks, with such sectors as financials <.gspf> and materials <.gspm> among the hardest hit.

Energy shares have been stronger as crude oil advanced. A flare-up in violence in the Middle East lifted oil prices on concerns about a possible supply disruption. Brent crude is up 3 percent over the past two weeks.

The Dow Jones industrial average <.dji> was down 27.03 points, or 0.22 percent, at 12,515.35. The Standard & Poor's 500 Index <.spx> was down 5.11 points, or 0.38 percent, at 1,348.22. The Nasdaq Composite Index <.ixic> was down 9.66 points, or 0.34 percent, at 2,827.28.

The S&P and the Dow are currently down about 2.3 percent for the week while the Nasdaq is down about 2.7 percent.

Dell Inc's stock slumped 8.1 percent to $8.80 and was the biggest percentage decliner on the S&P 500 a day after reporting a steep drop in its quarterly profit.

Shares of Penn National Gaming Inc jumped 30 percent to $48.65 after the owner of gaming and pari-mutuel properties said late Thursday it will split its business into two separate publicly traded companies - a gaming focused real estate investment trust and a gaming operator.

Sears Holdings Corp late Thursday reported a quarterly loss that was narrower than expected, but same-store sales fell on weak demand for electronics, sending shares down 14.8 percent to $49.80.

J.M. Smucker Co reported a rise in second-quarter earnings, helped by a drop in commodity costs, but the stock fell 3.4 percent to $82.45.

(Editing by Kenneth Barry)

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War looms over Gaza as death toll rises

GAZA (Reuters) - A Hamas rocket killed three Israelis north of the Gaza Strip on Thursday, drawing the first blood from Israel as the Palestinian death toll rose to 15 in a military showdown lurching closer to all-out war and an invasion of the enclave.

On the second day of an assault Israel said might last many days and culminate in a ground attack, its warplanes bombed targets in and around Gaza city, where tall buildings trembled.

Plumes of smoke and dust furled into a sky laced with the vapor trails of outgoing rockets.

The sudden conflict, launched by Israel with the killing of Hamas's military chief, pours oil on the fire of a Middle East already ablaze with two years of revolution and an out-of-control civil war in Syria. Palestinian allies, led by Egyptian President Mohamed Mursi, denounced the Israeli offensive.

After watching powerlessly from the sidelines of the Arab Spring, Israel has been thrust to the centre of a volatile new world in which Islamist Hamas believes that Mursi and his newly dominant Muslim Brotherhood in Egypt will be its protectors.

The Palestinian Islamist group claimed it had fired a one-ton, Iranian-made Fajr 5 rocket at Tel Aviv in what would be a major escalation, but there was no reported impact in the Israeli metropolis 50 km (30 miles) north of the enclave.

"The Israelis must realize that this aggression is unacceptable and would only lead to instability in the region and would negatively and greatly impact the security of the region," Mursi said, although there was no immediate sign of robust action by Egypt, Israel's most powerful Arab neighbor.

The new conflict will be the biggest test yet of Mursi's commitment to Egypt's 1979 peace treaty with Israel, which the West views as the bedrock of Middle East peace.

The Muslim Brotherhood, which brought Mursi to power in an election after the downfall of autocrat Hosni Mubarak, has called for a 'Day of Rage' in Arab capitals on Friday. The Brotherhood is seen as the spiritual mentors of Hamas.

ASSASSINATION

The offensive began on Wednesday when a precision Israeli airstrike assassinated Hamas military mastermind Ahmed Al-Jaabari, and Israel shelled the enclave from land, air and sea.

The 15 killed in Gaza included Jaabari and six Hamas fighters plus eight civilians, among them a pregnant woman with twins, an 11-month old boy and three infants, according to the enclave's health ministry. Medics reported at least 130 wounded.

At Jaabari's funeral on Thursday, supporters fired guns in the air celebrating news of the Israeli deaths, to chants for Jaabari of "You have won." His corpse was borne through the streets wrapped in a bloodied white sheet. But senior Hamas figures were not in evidence, wary of Israel's warning that they are now in its crosshairs.

The Israeli army said 156 targets were hit in Gaza, 126 of them rocket launchers. It said 200 rockets had struck Israel since the start of the operation, 135 of them since midnight.

Israel's Iron Dome interceptor system has so far shot down 81 rockets headed towards residential areas, the military said.

One of those that got through caught its victims before they could reach the blast shelters that are everywhere in the Negev region, prey to sporadic Palestinian rocket attacks from Gaza for the past five years.

Israeli police said the three died when a rocket hit a four-story building in the town of Kiryat Malachi, some 25 km (15 miles) north of Gaza. They were the first Israeli fatalities of the latest conflict to hit the coastal region.

Expecting days or more of fighting and almost inevitable civilian casualties, Israeli warplanes dropped leaflets in Gaza telling residents to stay away from Hamas and other militants.

The United States condemned Hamas, shunned by the West as an obstacle to peace for its refusal to renounce violence and recognize Israel.

"There is no justification for the violence that Hamas and other terrorist organizations are employing against the people of Israel," said Mark Toner, deputy State Department spokesman.

The U.N. Security Council held an emergency meeting late on Wednesday to discuss the Israeli assault, but took no action.

In France, Foreign Minister Laurent Fabius said: "It would be a catastrophe if there is an escalation in the region. Israel has the right to security but it won't achieve it through violence. The Palestinians also have the right to a state."

"GATES OF HELL"

Israel's sworn enemy Iran, which supports and arms Hamas, condemned the Israeli offensive as "organized terrorism". Lebanon's Iranian-backed Shi'ite militia Hezbollah, which has its own rockets aimed at the Jewish state, denounced strikes on Gaza as "criminal aggression", but held its fire.

Oil prices rose more than $1 as the crisis grew. Israeli shares and bonds fell, while Israel's currency rose off Wednesday's lows, when the shekel slid more than 1 percent to a two-month low against the dollar.

A second Gaza war has loomed on the horizon for months as waves of Palestinian rocket attacks and Israeli strikes grew increasingly intense and frequent. Prime Minister Benjamin Netanyahu, favored in polls to win a January 22 general election, said on Wednesday the Gaza operation could be stepped up.

His cabinet has granted authorization for the mobilization of military reserves if required to press the offensive, dubbed "Pillar of Defence" in English and "Pillar of Cloud" in Hebrew after the Israelites' divine sign of deliverance in Exodus.

Hamas has said the killing of its top commander In a precision, death-from-above airstrike, would "open the gates of hell" for Israel. It appealed to Egypt to halt the assault.

Israel has been anxious since Mubarak was toppled last year in the Arab Spring revolts that replaced secularist strongmen with elected Islamists in Egypt, Tunisia and Libya, and brought civil war to Israel's other big neighbor Syria.

Cairo recalled its ambassador from Israel on Wednesday. Israel's ambassador left Cairo on what was called a routine home visit and Israel said its embassy would stay open.

Gaza has an estimated 35,000 Palestinian fighters, no match for Israel's F-16 fighter-bombers, Apache helicopter gunships, Merkava tanks and other modern weapons systems in the hands of a conscript force of 175,000, with 450,000 in reserve.

(Additional reporting by Ari Rabinovitch in Jerusalem, Erika Solomon in Beirut, John Irish in Paris. Marwa Awad in Cairo.; Writing by Douglas Hamilton; Editing by Peter Graff)

(This story was corrected to remove reference to U.N. Security Council calling for halt to violence in paragraph 20. The Council met and India's ambassador, who is president of the body, called for a halt to violence, but he spoke on behalf of India not on behalf of the Council.)

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Diem Brown Blogs About Her Sister's Breast Cancer Scare

Diem Brown and her sister

Courtesy Diem Brown

In her PEOPLE.com blog, Diem Brown, the Real World/Road Rules Challenge contestant recently diagnosed with ovarian cancer for the second time, opens up about her desire for a child and the ups and downs of cancer and fertility procedures.

It's the phone call that you never want to get – the one that makes your blood heat, your senses perk up and your heart drop. It's the call where you find out that someone you love dearly is in danger.

When I pick up the phone I think my sister is calling to discuss the grey rug she wants us to buy for our newly-shared apartment. Living together might seem like a recipe for disaster – especially for sisters only 18 months apart in age – but as I hear my sister's strong steady voice start to uncharacteristically tremble, I know that living together was meant to be for us.

"They found a lump," my sister's voice cracks through the phone. "My GYN wants me to get a mammogram tonight. Tell me it's okay. Please tell me it's okay. Tell me this is normal."

The phone feels heavy in my hand. My sister is someone with the most incredible strength you could ever imagine. Hearing her voice tremble, I desperately want to wash away her fear.

"Where are you? Try and calm your mind from going to that bad news place. There is no way they can know just from feeling the lump if it's ... umm ..."

The Stupid C Word

I can't even say that stupid "cancer" word. I can't even think that stupid "c" word would be able to creep into a conversation about my sister.

"Where are you?" I ask again. "I want to come with you. What's the address?"

My sister adamantly denies that she wants company and quickly hangs up. I understand her thought-process: Having someone with you in a waiting room can sometimes feel like you are jinxing yourself for bad news. So I don't press it, and instead start texting her "steps" she that can focus on and hope her mind doesn't wander to Bad News Land.

"Loooove you sister!!! Think positive. Don't let your mind go to any scary place. Until they have biopsied the lump they won't give you any scary news. First is hand test, then is mammogram ... if the mammogram is cloudy THEN they will biopsy the lump ... Which still doesn't mean bad news ... Just take each step at a time and try not to let your mind race baby," I write.

"It's okay to be emotional," I continue. "I know this is a scary thought. You have every right to be scared, sister. I totally understand where you are coming from. You are allowed to feel every emotion and KNOW I am here to hold your hand love you soooo much."

I then get a short text message back from my sister and I know she is scared but eager to get more information. "Thk u ... Happy they can see me now."

I'm angry. So angry. I can now fully understand how friends and family feel when they can't fix the hurt of someone they love so much. I wait for my sister to walk through our apartment door. When she does, her bloodshot eyes immediately tell me that she is overwhelmed and scared.

Getting the News

"The specialist did a sonogram scan and he found a lump ... he found a lump in each breast," she says. Her strong demeanor cracks and she tries to keep her lip tight, but she breaks and tears fall down her cheeks. My sister quickly wipes her eyes and mumbles. "I feel so selfish crying about this to you, of all people."

Shocked and confused about why and how her mind even went there, I grab my sister's shoulders. "What are you talking about? Stop. This IS a big deal! Baby, you are so strong, but stop being strong. It's okay to cry. What else did this doctor say?"

My sister fumbles through some papers and shows me terms the doctor wrote down. She says she felt like her first doctor, her GYN, was an alarmist and freaked my sister out by saying, "This tumor needs to be removed immediately and biopsied because it wasn't there in June when I checked you last, which that means this tumor is fast-growing."

It's funny how some words can immediately strike fear into one's heart no matter how they are spoken, how the terms "lump," "tumor" and "biopsy" all have scary associations tied to them.

However, my sister says that she loved her second doctor. The specialist had a gentle, calm nature even though he informed her that she has not one, but two lumps. She liked how sweetly he said that he could remove both of the lumps pretty easily. It's amazing how the delivery of news can change everything.

As we searched online, I asked my sister if I could write about this. She smiled, saying, "I do think it's good you remind people. I feel like it's like flossing. We all tell our doctors we SBE (self breast exam), but no one really does it!"

So as we wait and continue the journey down this "lumpy" road praying for the very best, I hope tonight y'all will take a little extra time to do a Self Breast Exam. Like everything, knowledge is power – and early knowledge can be life saving!

Check back for updates every Thursday: Diem will be chronicling exclusively for PEOPLE.com her journey through fertility treatments, chemotherapy and her quest to educate others about ovarian health. You can also follow her on Twitter @DiemBrown.

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Booze calories nearly equal soda's for US adults

NEW YORK (AP) — Americans get too many calories from soda. But what about alcohol? It turns out adults get almost as many empty calories from booze as from soft drinks, a government study found.

Soda and other sweetened drinks — the focus of obesity-fighting public health campaigns — are the source of about 6 percent of the calories adults consume, on average. Alcoholic beverages account for about 5 percent, the new study found.

"We've been focusing on sugar-sweetened beverages. This is something new," said Cynthia Ogden, one of the study's authors. She's an epidemiologist with the Centers for Disease Control and Prevention which released its findings Thursday.

The government researchers say the findings deserve attention because, like soda, alcohol contains few nutrients but plenty of calories.

But a liquor trade association said the findings indicate there's no big problem.

"This research shows that the overwhelming majority of adults drink moderately," Lisa Hawkins, a spokeswoman for the Distilled Spirits Council, said in a statement.

The CDC study is based on interviews with more than 11,000 U.S. adults from 2007 through 2010. Participants were asked extensive questions about what they ate and drank over the previous 24 hours.

The study found:

—On any given day, about one-third of men and one-fifth of women consumed calories from beer, wine or liquor.

—Averaged out to all adults, the average guy drinks 150 calories from alcohol each day, or the equivalent of a can of Budweiser.

—The average woman drinks about 50 calories, or roughly half a glass of wine.

—Men drink mostly beer. For women, there was no clear favorite among alcoholic beverages.

—There was no racial or ethnic difference in average calories consumed from alcoholic beverages. But there was an age difference, with younger adults putting more of it away.

For reference, a 12-ounce can of regular Coca-Cola has 140 calories, slightly less than a same-sized can of regular Bud. A 5-ounce glass of wine is around 100 calories.

In September, New York City approved an unprecedented measure cracking down on giant sodas, those bigger than 16 ounces, or half a liter. It will take effect in March and bans sales of drinks that large at restaurants, cafeterias and concession stands.

Should New York officials now start cracking down on tall-boy beers and monster margaritas?

There are no plans for that, city health department officials said, adding in a statement that while studies show that sugary drinks are "a key driver of the obesity epidemic," alcohol is not.

Health officials should think about enacting policies to limit alcoholic intake, but New York's focus on sodas is appropriate, said Margo Wootan, director of nutrition policy for the Center for Science in the Public Interest, a public health advocacy group.

Soda and sweetened beverages are the bigger problem, especially when it comes to kids — the No. 1 source of calories in the U.S. diet, she said.

"In New York City, it was smart to start with sugary drinks. Let's see how it goes and then think about next steps," she said.

However, she lamented that the Obama administration is planning to exempt alcoholic beverages from proposed federal regulations requiring calorie labeling on restaurant menus.

It could set up a confusing scenario in which, say, a raspberry iced tea may have a calorie count listed, while an alcohol-laden Long Island Iced Tea — with more than four times as many calories — doesn't. "It could give people the wrong idea," she said.

___

Online:

CDC report: http://www.cdc.gov/nchs/

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Wall Street flat, unable to hang onto gains

NEW YORK (Reuters) - Stocks were little changed in choppy trading on Thursday as investors found little reason to buy following weak results from Wal-Mart Stores Inc and rising tensions in the Middle East.

After stock index futures rose before the market opened, Wall Street dipped temporarily soon after the open on data from the Philadelphia Federal Reserve Bank that showed business activity in mid-Atlantic states unexpectedly contracted.

The recent trend has been for stocks to struggle to hold onto even slight gains, as on Wednesday when they opened higher but slumped at midday and ended down more than 1 percent.

"There's nothing that suggests the economy is poised to free-fall or rally, and with all the uncertainty out there people are choosing to just take their 2012 gains now rather than December," said John Norris, managing director of wealth management with Oakworth Capital Bank in Birmingham, Alabama.

Stil, the S&P 500 is up 8.2 percent so far this year, though at its 2012 peak the benchmark index was up more than 17 percent.

Wal-Mart fell 3.8 percent to $68.60 after reporting third-quarter revenue that missed expectations. The company said economic conditions pressured customers' spending. Target Corp rose 1.1 percent to $62.08 after it reported a profit that beat expectations.

Weekly jobless claims spiked in the latest week, hurt by the impact of superstorm Sandy, though consumer prices came in as expected with a 0.1 percent increase. Claims totaled 439,000, over expectations of 375,000.

The Philly Fed said its business activity index slumped to -10.7 from 5.7 the month before, a much steeper fall than had been expected. The data was affected by disruption from superstorm Sandy, which slammed the U.S. Northeast in late October.

The Dow Jones industrial average <.dji> was up 11.56 points, or 0.09 percent, at 12,582.51. The Standard & Poor's 500 Index <.spx> was up 1.88 points, or 0.14 percent, at 1,357.37. The Nasdaq Composite Index <.ixic> was down 0.97 point, or 0.03 percent, at 2,845.84.

Both the Dow and Nasdaq ended at their lowest levels since late June on Wednesday, while the S&P 500 is down about 5 percent since election night. Wednesday marked the benchmark index's lowest close since July 25.

Investors may seek bargains at these levels, but many analysts say strong gains may be hard to come by until at least one of several global macroeconomic headwinds go away.

NetApp Inc surged 9.7 percent to $29.81 a day after reporting adjusted second-quarter earnings that beat expectations and forecasting a strong current quarter.

Overseas, Israel launched a major offensive against Palestinian militants in Gaza, killing the military commander of Hamas in an air strike and threatening an invasion of the enclave. Egypt said it recalled its ambassador from Israel in response.

Energy shares may be affected by the tensions in the Middle East, as any disruption in crude supplies could spark a jump in oil prices. Brent crude rose 1 percent while oilfield services company Halliburton Co rose 1.6 percent to $30.43.

President Barack Obama Wednesday reiterated his position that marginal tax rates would have to rise to tackle U.S. deficits. Taxes on capital gains and dividends could rise as part of the negotiations, pushing investors to sell this year and pay lower taxes on their gains.

A regional gauge of manufacturing in New York state slowed for a fourth straight month in November but was stronger than expected.

(Editing by Kenneth Barry)

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Hope Solo Weds Jerramy Stevens Amid Assault Allegations?

By Dahvi Shira

11/14/2012 at 06:35 PM EST

Jerramy Stevens and Hope Solo

NFL/Getty; Jeff Vinnick/Getty

One day after former Seattle Seahawks tight end Jerramy Stevens was arrested on suspicion of assaulting his fiancée, U.S. women's soccer team goalkeeper Hope Solo, the pair reportedly tied the knot.

"Confirmed," Sportsradio 950 AM and 102.9 FM radio host Dave Mahler Tweeted on Tuesday. "Jerramy Stevens and Hope Solo were married tonight. Events of yesterday morning didn't change plans."

The pair, who had only been dating for about two months, applied for a marriage license last Thursday. According to court documents, the athletes were arguing over whether to wed in Florida or Washington State.

Stevens, 33, was reportedly released from custody by a Kirkland, Wash., Municipal Court judge on Tuesday after determining there wasn't enough evidence to hold the former football star.

All of the former Dancing with the Stars contestant's social media pages have gone silent since Nov. 6., and calls to her rep have not been returned.

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Hope Solo Weds Jerramy Stevens Amid Assault Allegations?

By Dahvi Shira

11/14/2012 at 06:35 PM EST

Jerramy Stevens and Hope Solo

NFL/Getty; Jeff Vinnick/Getty

One day after former Seattle Seahawks tight end Jerramy Stevens was arrested on suspicion of assaulting his fiancée, U.S. women's soccer team goalkeeper Hope Solo, the pair reportedly tied the knot.

"Confirmed," Sportsradio 950 AM and 102.9 FM radio host Dave Mahler Tweeted on Tuesday. "Jerramy Stevens and Hope Solo were married tonight. Events of yesterday morning didn't change plans."

The pair, who had only been dating for about two months, applied for a marriage license last Thursday. According to court documents, the athletes were arguing over whether to wed in Florida or Washington State.

Stevens, 33, was reportedly released from custody by a Kirkland, Wash., Municipal Court judge on Tuesday after determining there wasn't enough evidence to hold the former football star.

All of the former Dancing with the Stars contestant's social media pages have gone silent since Nov. 6., and calls to her rep have not been returned.

Read More..

Hope Solo Weds Jerramy Stevens Amid Assault Allegations?

By Dahvi Shira

11/14/2012 at 06:35 PM EST

Jerramy Stevens and Hope Solo

NFL/Getty; Jeff Vinnick/Getty

One day after former Seattle Seahawks tight end Jerramy Stevens was arrested on suspicion of assaulting his fiancée, U.S. women's soccer team goalkeeper Hope Solo, the pair reportedly tied the knot.

"Confirmed," Sportsradio 950 AM and 102.9 FM radio host Dave Mahler Tweeted on Tuesday. "Jerramy Stevens and Hope Solo were married tonight. Events of yesterday morning didn't change plans."

The pair, who had only been dating for about two months, applied for a marriage license last Thursday. According to court documents, the athletes were arguing over whether to wed in Florida or Washington State.

Stevens, 33, was reportedly released from custody by a Kirkland, Wash., Municipal Court judge on Tuesday after determining there wasn't enough evidence to hold the former football star.

All of the former Dancing with the Stars contestant's social media pages have gone silent since Nov. 6., and calls to her rep have not been returned.

Read More..

Hope Solo Weds Jerramy Stevens Amid Assault Allegations?

By Dahvi Shira

11/14/2012 at 06:35 PM EST

Jerramy Stevens and Hope Solo

NFL/Getty; Jeff Vinnick/Getty

One day after former Seattle Seahawks tight end Jerramy Stevens was arrested on suspicion of assaulting his fiancée, U.S. women's soccer team goalkeeper Hope Solo, the pair reportedly tied the knot.

"Confirmed," Sportsradio 950 AM and 102.9 FM radio host Dave Mahler Tweeted on Tuesday. "Jerramy Stevens and Hope Solo were married tonight. Events of yesterday morning didn't change plans."

The pair, who had only been dating for about two months, applied for a marriage license last Thursday. According to court documents, the athletes were arguing over whether to wed in Florida or Washington State.

Stevens, 33, was reportedly released from custody by a Kirkland, Wash., Municipal Court judge on Tuesday after determining there wasn't enough evidence to hold the former football star.

All of the former Dancing with the Stars contestant's social media pages have gone silent since Nov. 6., and calls to her rep have not been returned.

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Beverly Johnson Welcomes a Grandson

Mom & Babies
Celebrity Baby Blog

11/14/2012 at 05:30 PM ET

Courtesy Patterson Family

Election day ended in a big win for Anansa Sims!

The plus-size model and her husband, former NFL player David Patterson, welcomed their second child, David Bernard Patterson III, on Tuesday, Nov. 6, her rep confirms to PEOPLE.

Weighing 8 lbs., 13 oz. and measuring 21 inches long, baby boy joins big sister Ava Brielle, 16 months.

Equally excited about her grandson’s arrival was Beverly Johnson.

“[I'm] feeling so blessed! Being a grandparent is the best!!!” the supermodel and star of Beverly’s Full House, 60, tells PEOPLE. “I am so in love! Go straight to grandparenthood!”

The couple — who tied the knot in 2010 — announced the pregnancy in April, with Sims sharing her high hopes for a baby boy.

Courtesy Patterson Family

Courtesy Patterson Family

– Anya Leon with reporting by Melody Chiu

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