Dow, S&P end higher, but Apple sinks Nasdaq in wild day

NEW YORK (Reuters) - A volatile trading session ended with stocks mostly higher on Wednesday, even as Apple, the most valuable company in the United States, suffered its worst day of losses in almost four years.

In a strange occurrence, Apple accounted for the entirety of the Nasdaq 100's <.ndx> fall of 1.1 percent, while the Dow industrials - which do not include Apple as a component - enjoyed the best day since November 28.

With the drop, Apple shed nearly $35 billion in market capitalization, its biggest one-day market-cap loss ever. The company's market value, or market capitalization, now stands at $506.85 billion.

"Today's move is because of index weightings, with the Nasdaq down because of Apple's decline," said Rex Macey, chief investment officer of Wilmington Trust in Atlanta. "The S&P is up because Apple isn't as big a weight in that index, and the Dow is up even more because it isn't there at all."

The broad market seesawed, with the S&P 500 dropping into negative territory before it rebounded off the 1,400 level, seen as a key support point over the past two weeks. Investors cited comments from President Barack Obama suggesting a potential near-term resolution to the "fiscal cliff" wrangling in Washington as a catalyst for the rebound.

Shares of The Travelers Cos Inc rose 4.9 percent to $74. The stock ranked as the Dow's top percentage gainer after the insurance company said it intended to resume stock buybacks it had temporarily suspended while it assessed its exposure to Superstorm Sandy. The company also said a preliminary estimate of net losses from Sandy was about $650 million after tax.

The Dow Jones industrial average <.dji> rose 82.71 points, or 0.64 percent, to 13,034.49 at the close. The Standard & Poor's 500 Index <.spx> gained 2.23 points, or 0.16 percent, to 1,409.28. But the Nasdaq Composite Index <.ixic> fell 22.99 points, or 0.77 percent, to end at 2,973.70.

Apple, the largest U.S. company by market capitalization and a big weight in both the S&P 500 and the Nasdaq, fell 6.4 percent to $538.79. Apple is down more than 20 percent from an all-time high reached in late September, putting the stock into bear market territory.

Banking shares were led higher by a 6.3 percent jump in Citigroup to $36.46 after the company said it would cut 4 percent of its workforce. [ID:nL1E8N52IQ] The S&P financial sector index <.gspf> climbed 1.3 percent, and Bank of America hit a 52-week high of $10.55 before pulling back slightly. The stock, a Dow component, ended at $10.46, up 5.7 percent for the day.

Still, Apple struggled throughout the session. Market participants cited a host of reasons for the drop in the iPad maker's stock, including a consultant's report about the company losing share in the tablet market and reports that margin requirements had been raised by at least one clearing firm, as well as year-end tax selling ahead of a possible rise in capital-gains tax rates next year.

On the Washington front, Obama told the Business Roundtable, a group of chief executives, on Wednesday that a fiscal cliff deal was possible "in about a week" if Republicans acknowledged the need to raise taxes on the wealthiest Americans.

Equities have struggled to gain ground recently because of concerns over the fiscal cliff - a series of mandatory spending cuts and tax increases effective in early January that could push the U.S. economy into recession next year. Recently equities have moved on any whiffs of sentiment from Washington in headlines about negotiations.

"Obama's comments generated a lot of optimism, but to the extent the market believes them, that's how much we're setting ourselves up for a decline if that deadline passes with no progress," said Macey, who helps oversee about $20 billion in assets.

In an interview on CNBC after the market closed, U.S. Treasury Secretary Tim Geithner said that uncertainty over the fiscal cliff was standing in the way of stronger economic growth, and that there was no prospect for an agreement if tax rates didn't rise on the wealthiest taxpayers.

The stock of Freeport-McMoRan Copper & Gold Inc fell 16 percent to $32.17 and ranked as the S&P 500's biggest percentage decliner. The company said it was acquiring Plains Exploration & Production Co and McMoRan Exploration Co in two separate deals for $9 billion in cash and stock in a major expansion into energy.

McMoRan Exploration soared 87 percent to $15.82 and Plains surged 23.4 percent to $44.50.

After the closing bell, Standard & Poor's said it cut Greece's sovereign long-term foreign currency credit rating to "selective default" from its already low "CCC" rating. Last week, the country and its international lenders reached a deal to lower its debt burden through a debt buyback.

About half of the stocks traded on the New York Stock Exchange closed in positive territory, while about 54 percent of Nasdaq-listed shares ended lower.

Volume was higher than it has been in recent sessions, with about 7.01 billion shares changing hands on the New York Stock Exchange, the Nasdaq and NYSE MKT, above the daily average so far this year of about 6.48 billion shares.

(This story has been corrected in paragraph 17 to show previous rating for Greece was "CCC" and not "C")

(Editing by Jan Paschal)

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Nasrin Sotoudeh, Iranian Rights Advocate, Ends Hunger Strike

TEHRAN — An imprisoned human rights lawyer serving a sentence for “acting against national security” ended a 49-day hunger strike on Tuesday after judicial authorities acceded to her demand to lift a travel ban imposed on her 12-year-old daughter, her husband said.

The lawyer, Nasrin Sotoudeh, 49, who until her imprisonment in 2010 was one of the last lawyers taking on high-profile human rights and political cases in Iran, decided in October to go on the hunger strike out of fear of increasing limitations imposed on her family. She fell into fragile health during the hunger strike, in which she would drink only water mixed with salts and sugar. Her weight dropped to 95 pounds.

It was the second time that Ms. Sotoudeh felt compelled to quit eating. She declared her first hunger strike in 2010, after her family was forbidden to visit or make phone calls. In that case, the authorities capitulated after four weeks, allowing her husband and two children to visit weekly.

Ms. Sotoudeh has also written several public letters from prison, one of which thanked the head of the judiciary for putting her in jail, saying she was horrified by the thought of being free while her former clients were still in prison.

In recent years, several lawyers representing people suspected of security crimes have been arrested while others, like Shirin Ebadi, who won the Nobel Peace Prize in 2003, have left the country. Tuesday’s ruling, which has not been officially confirmed by the authorities here, seemed to show that Iranian officials are receptive to pressure in human rights cases — something that Ms. Sotoudeh has argued consistently.

Iranian officials deny there are any political prisoners in Iran, saying that all those behind bars have been tried according to the country’s laws. Ms. Sotoudeh is serving a six-year prison term since her conviction last year on the national security charge and over “misusing her profession as a lawyer.”

During a news conference last week, Mohammad Javad Larijani, a member of an influential political family and the head of the judiciary’s self-appointed Human Rights Council, said that from Iran’s official point of view there was nothing out of the ordinary about Ms. Sotoudeh’s imprisonment.

“Her dossier has had its course,” he told reporters, emphasizing what he called the independence of Iran’s judicial system. “Judges and lawyers have exhausted all legal possibilities and now she is doing her time in jail.” He said that contrary to reports, Ms. Sotoudeh was in good health. “We care about our inmates, whether they are on hunger strike or not,” Mr. Larijani said.

International rights activists and human rights groups have tried to highlight Ms. Sotoudeh’s case, and international lawyers, movie directors and politicians — among them Secretary of State Hillary Rodham Clinton — have called on Iran to set her free. Ten days into her hunger strike, on Oct. 26, Ms. Sotoudeh, together with Jafar Panahi, an Iranian filmmaker who is under house arrest, was awarded the Sakharov Prize for Freedom of Thought by the European Union.

The international attention, widely replayed on Persian-language satellite channels at odds with Iran’s rulers, has helped raise her profile among middle-class Iranians, who generally admire her persistence. The attention has made it increasingly hard for Iranian officials to ignore her case, Ms. Sotoudeh’s husband, Reza Khandan, a computer engineer, said in an interview.

Mr. Khandan said that his wife is a great admirer of Daw Aung San Suu Kyi, the Burmese opposition leader and Nobel laureate, who spent years under house arrest, became an international symbol of resistance and is now a political leader herself.

“But this is her fight, and not our children’s,” Mr. Khandan said, “so Nasrin does everything she can in order to have something of a normal life.”

This article has been revised to reflect the following correction:

Correction: December 4, 2012

An earlier version of this article misstated the length of a hunger strike by Nasrin Sotoudeh. It was 49 days, not 47.

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Snooki Gives Kate Middleton Motherhood Advice

By Julia Haskins

12/04/2012 at 05:30 PM EST

Nicole Polizzi and Kate Middleton

Daniel Boczarski/WireImage; REX USA

Nicole "Snooki" Polizzi is lending her expertise to Kate Middleton – as a mommy mentor!

The Jersey Shore star, who gave birth to son Lorenzo in August, offered the expectant Duchess of Cambridge a few tips on being a new mom.

"It's hard, but don't stress out,” Polizzi told the New York Daily News. "Enjoy your pregnancy and be excited."

Middleton is currently in the hospital to treat her severe morning sickness, but Polizzi encouraged her to take it easy out of the public eye. “Enjoy your time at home – or the castle, in her case – with the baby,” she said. “Especially the first few months.”

Nobody said it would be easy, but Polizzi knows from experience that it's worth the (baby) bumps along the way.

"You'll get to know him/her, keep them safe and fall more in love each day," she says.

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Study: Drug coverage to vary under health law

WASHINGTON (AP) — A new study says basic prescription drug coverage could vary dramatically from state to state under President Barack Obama's health care overhaul.

That's because states get to set benefits for private health plans that will be offered starting in 2014 through new insurance exchanges.

The study out Tuesday from the market analysis firm Avalere Health found that some states will require coverage of virtually all FDA-approved drugs, while others will only require coverage of about half of medications.

Consumers will still have access to essential medications, but some may not have as much choice.

Connecticut, Virginia and Arizona will be among the states with the most generous coverage, while California, Minnesota and North Carolina will be among states with the most limited.

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Online:

Avalere Health: http://tinyurl.com/d3b3hfv

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Wall Street slips as investors seek cliff progress

NEW YORK (Reuters) - Stocks finished slightly lower in a quiet session on Tuesday as the back-and-forth wrangling over the "fiscal cliff" gave investors little reason to act.

Trading volume was light as legislators continue to negotiate a deal to avoid a $600 billion package of tax hikes and federal spending cuts that would begin January 1 and could push the economy into recession.

Just 5.86 billion shares changed hands on the New York Stock Exchange, the Nasdaq and the NYSE MKT, below the year's daily average of 6.48 billion shares.

A key measure of investor anxiety has remained muted. The CBOE Volatility Index or VIX <.vix>, a gauge of market anxiety, was at 17.12, up 2.9 percent. It has not traded above 20 since July.

Optimism for progress was dented after remarks by President Barack Obama, who rejected a Republican proposal to resolve the crisis as "out of balance" and said any deal must include a rise in income tax rates on the wealthiest Americans.

"People don't know if what's going on is political posturing or real negotiations that represent progress," said Bernard Baumohl, managing director and chief global economist at the Economic Outlook Group in Princeton, New Jersey.

Expectations of higher taxes on dividends beginning in 2013 have pushed many companies to pay special dividends this year or advance their next payback to investors. Coach became the latest to move up the date of its next dividend payment, and the news lifted shares of the upscale leather-goods maker earlier in the session. By the close, though, Coach was down 1.2 percent at $57.52.

One of the S&P 500's top sectors for the day was health care <.gspa>, considered a defensive group.

The Dow Jones industrial average <.dji> fell 13.82 points, or 0.11 percent, to 12,951.78 at the close. The Standard & Poor's 500 Index <.spx> dipped 2.41 points, or 0.17 percent, to 1,407.05. The Nasdaq Composite Index <.ixic> shed 5.51 points, or 0.18 percent, to close at 2,996.69.

The market has been sensitive to rhetoric from Washington, as a failure to reach an agreement could send the U.S. economy back into recession. Still, many expect a resolution to be found, which could extend the S&P 500's rally of 12 percent so far this year.

Differences within the Republican Party came to the fore on Tuesday as one senator opposed to raising taxes lashed out at Republican House Speaker John Boehner for proposing to increase revenue by closing some tax loopholes.

Congressional Republicans recently proposed steep spending cuts to bring down the budget deficit, but gave no ground on Obama's call to raise tax rates on the rich. The proposal was quickly dismissed by the White House.

"We're on hold trying to figure it out, but investors are stressed since they have to make decisions soon about how to proceed with their investments if taxes are indeed going up. We could see a real pick-up in volume over the next week or so," Baumohl said.

Netflix Inc was the S&P 500's top percentage gainer, advancing 14 percent to $86.65 after Walt Disney Co agreed to give the company exclusive TV distribution rights to its movies, starting in 2016.

Intel Corp shares rose 2.2 percent to $19.97 after the top chipmaker sold $6 billion in bonds to fund stock buybacks and other business activities.

Darden Restaurants Inc shares plunged 9.6 percent to $47.40 as the S&P 500's worst performer after the company warned that its latest quarter would miss expectations after unsuccessful promotions led to a decline in sales at its Olive Garden, Red Lobster and LongHorn Steakhouse chains.

In contrast, Big Lots Inc surged 11.5 percent to $31.27 after the close-out retailer posted a smaller-than-expected loss and boosted its full-year adjusted earnings forecast.

MetroPCS Communications shares tumbled 7.5 percent to $9.96 after Sprint Nextel appeared unlikely to make a counter-offer for the wireless service provider.

Almost half of the stocks traded on the New York Stock Exchange closed lower, while 50 percent of Nasdaq-listed shares closed in negative territory.

After the closing bell, Pandora Media Inc

shares plunged 23 percent after the company reported its third-quarter results.

(Editing by Jan Paschal)

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A Person of Interest

John McAfee, a pioneer in computer security, is on the run in Belize, where he is a person of interest in his neighbor’s murder. On Nov. 8, three days before his neighbor was found dead, Mr. McAfee appeared at a ceremony at the San Pedro Police Station in Ambergris Caye, Belize.

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Parents Learn of Daughter's Suspicious Death Via Facebook

By Steve Helling

12/03/2012 at 05:55 PM EST

On the evening of Nov. 18, Judith and James Jackson logged onto Facebook to find a horrifying message. Their daughter's college friend posted on their wall, consoling them about the loss of their daughter, Jasmine.

Until that moment, the Jacksons thought their daughter was alive and well, enjoying her freshman year at Valdosta State University in southern Georgia.

Jasmine Benjamin, a 17-year-old nursing student, was found dead in her dorm's common study area around noon that day. Authorities soon determined that the she had been dead for at least 12 hours but her roommates thought she was simply sleeping on the study room couch. Because the body had been moved, Valdosta police suspect foul play.

The news has left her parents reeling.

"That's the most disturbing part of it. Aren't there RAs?" her mother, Judith Jackson tells CBS. "What kind of school is this that they don't know someone's laying on the couch – to go check on them after a certain amount of hours?"

Valdosta State University released a statement saying it was "continuing to work with law enforcement agencies in their ongoing investigation into the death of Jasmine Benjamin."

Police are still investigating. Autopsy and toxicology results are not back yet.

"We want answers," says Jasmine's stepfather, James Jackson. "This family needs closure. It's extremely tough when you don't know, and you have no answers."

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Fossil fuel subsidies in focus at climate talks

DOHA, Qatar (AP) — Hassan al-Kubaisi considers it a gift from above that drivers in oil- and gas-rich Qatar only have to pay $1 per gallon at the pump.

"Thank God that our country is an oil producer and the price of gasoline is one of the lowest," al-Kubaisi said, filling up his Toyota Land Cruiser at a gas station in Doha. "God has given us a blessing."

To those looking for a global response to climate change, it's more like a curse.

Qatar — the host of U.N. climate talks that entered their final week Monday — is among dozens of countries that keep gas prices artificially low through subsidies that exceeded $500 billion globally last year. Renewable energy worldwide received six times less support — an imbalance that is just starting to earn attention in the divisive negotiations on curbing the carbon emissions blamed for heating the planet.

"We need to stop funding the problem, and start funding the solution," said Steve Kretzmann, of Oil Change International, an advocacy group for clean energy.

His group presented research Monday showing that in addition to the fuel subsidies in developing countries, rich nations in 2011 gave more than $58 billion in tax breaks and other production subsidies to the fossil fuel industry. The U.S. figure was $13 billion.

The Paris-based Organization for Economic Cooperation and Development has calculated that removing fossil fuel subsidies could reduce carbon emissions by more than 10 percent by 2050.

Yet the argument is just recently gaining traction in climate negotiations, which in two decades have failed to halt the rising temperatures that are melting Arctic ice, raising sea levels and shifting weather patterns with impacts on droughts and floods.

In Doha, the talks have been slowed by wrangling over financial aid to help poor countries cope with global warming and how to divide carbon emissions rights until 2020 when a new planned climate treaty is supposed to enter force. Calls are now intensifying to include fossil fuel subsidies as a key part of the discussion.

"I think it is manifestly clear ... that this is a massive missing piece of the climate change jigsaw puzzle," said Tim Groser, New Zealand's minister for climate change.

He is spearheading an initiative backed by Scandinavian countries and some developing countries to put fuel subsidies on the agenda in various forums, citing the U.N. talks as a "natural home" for the debate.

The G-20 called for their elimination in 2009, and the issue also came up at the U.N. earth summit in Rio de Janeiro earlier this year. Frustrated that not much has happened since, European Union climate commissioner Connie Hedegaard said Monday she planned to raise the issue with environment ministers on the sidelines of the talks in Doha.

Many developing countries are positive toward phasing out fossil fuel subsidies, not just to protect the climate but to balance budgets. Subsidies introduced as a form of welfare benefit decades ago have become an increasing burden to many countries as oil prices soar.

"We are reviewing the subsidy periodically in the context of the total economy for Qatar," the tiny Persian gulf country's energy minister, Mohammed bin Saleh al-Sada, told reporters Monday.

Qatar's National Development Strategy 2011-2016 states it more bluntly, saying fuel subsides are "at odds with the aspirations" and sustainability objectives of the wealthy emirate.

The problem is that getting rid of them comes with a heavy political price.

When Jordan raised fuel prices last month, angry crowds poured into the streets, torching police cars, government offices and private banks in the most sustained protests to hit the country since the start of the Arab unrest. One person was killed and 75 others were injured in the violence.

Nigeria, Indonesia, India and Sudan have also seen violent protests this year as governments tried to bring fuel prices closer to market rates.

Iran has used a phased approach to lift fuel subsidies over the past several years, but its pump prices remain among the cheapest in the world.

"People perceive it as something that the government is taking away from them," said Kretzmann. "The trick is we need to do it in a way that doesn't harm the poor."

The International Energy Agency found in 2010 that fuel subsidies are not an effective measure against poverty because only 8 percent of such subsidies reached the bottom 20 percent of income earners.

The IEA, which only looked at consumption subsidies, this year said they "remain most prevalent in the Middle East and North Africa, where momentum toward their reform appears to have been lost."

In the U.S., environmental groups say fossil fuel subsidies include tax breaks, the foreign tax credit and the credit for production of nonconventional fuels.

Industry groups, like the Independent Petroleum Association of America, are against removing such support, saying that would harm smaller companies, rather than the big oil giants.

In Doha, Mohammed Adow, a climate activist with Christian Aid, called all fuel subsidies "reckless and dangerous," but described removing subsidies on the production side as "low-hanging fruit" for governments if they are serious about dealing with climate change.

"It's going to oil and coal companies that don't need it in the first place," he said.

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Associated Press writers Abdullah Rebhy in Doha, Qatar, and Brian Murphy in Dubai, United Arab Emirates, contributed to this report

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Karl Ritter can be reached at www.twitter.com/karl_ritter

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Wall Street sours on weak domestic factory data

NEW YORK (Reuters) - Stocks struggled to extend the previous week's gains, dropping on Monday as disappointing U.S. factory numbers dampened optimism about China's economic growth.

The declines broke a three-day streak of gains for the S&P 500, keeping it shy of its 50-day moving average of about 1,420, a level that the index has been below since October 22, and now serving as a key resistance point for investors.

Manufacturing activity in the United States surprisingly contracted in November, the Institute for Supply Management said, dropping to its lowest level in more than three years. Economic data has been mixed in recent months, fanning worries about the pace of growth at a time when investors are already concerned about the "fiscal cliff" issue in Washington.

The ISM number "was below expectations that were already conservative, and that puts an exclamation point on the concern many of us have about the cliff's impact on the economy," said Leo Grohowski, chief investment officer at BNY Mellon Wealth Management in New York.

Markets had opened higher as output by China's factories grew in November for the first time in more than a year, data showed. Investors look to strength from China, the world's second-largest economy, to offset weak growth in the United States and Europe.

Still, the fiscal cliff remains investors' primary focus, with political haggling continuing over how to deal with large automatic spending cuts and tax hikes scheduled to kick in next year. The worry is that the combination of reduced spending and higher taxes could tip the U.S. economy back into recession.

While off its highs for the year, the S&P 500 is still up 12.1 percent for 2012.

"This could be the last opportunity for investors to take profits" after an unexpectedly strong year, said Grohowski, who helps oversee about $170 billion in assets.

Materials were the weakest sector on Monday, led lower by Newmont Mining after the company said its CEO resigned. Newmont's stock fell 3 percent to $45.69. Dow component DuPont dropped 1.7 percent to $42.39. An S&P materials index <.gspm> lost 1.8 percent.

The Dow Jones industrial average <.dji> fell 59.98 points, or 0.46 percent, to 12,965.60 at the close. The Standard & Poor's 500 Index <.spx> declined 6.72 points, or 0.47 percent, to 1,409.46. The Nasdaq Composite Index <.ixic> dropped 8.04 points, or 0.27 percent, to end at 3,002.20.

U.S. Treasury Secretary Timothy Geithner pushed Republicans on Sunday to offer specific ideas to cut the deficit. He predicted that they would agree to raise tax rates on the rich to obtain a year-end deal to avoid the fiscal cliff.

Among other factors serving to offset the ISM report on U.S. factories were two developments in the euro zone: Spain formally requested the disbursement of more than $50 billion of European funds to recapitalize its crippled banking sector, while Greece said it would spend 10 billion euros ($13 billion) to buy back bonds in a bid to reduce its ballooning debt.

The PHLX Europe sector index <.xex> added 0.1 percent.

Dell shares gained 4.4 percent to $10.06. The stock was one of the biggest percentage gainers in both the S&P 500 and Nasdaq 100 <.ndx> after Goldman Sachs upgraded the stock to "buy" from "sell.

Advanced Micro Devices was the S&P's top gainer, rising 7.3 percent to $2.36. Options traders appeared to be betting on further gains ahead. Early options order flow was focused on upside April calls, including a sweep of 3,594 April $3.50 strike calls for 16 cents per contract when the market was 14 cents to 16 cents, said WhatsTrading.com options strategist Frederic Ruffy.

Retail stocks were among the weakest of the day, with J.C. Penney Co off 3.2 percent at $17.36 and Staples Inc off 2.3 percent at $11.43. Consumer discretionary names tend to underperform during periods of economic uncertainty as consumers focus on core purchases.

Volume was light, with about 5.58 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, well below last year's daily average of 7.84 billion.

Decliners outnumbered advancers on the NYSE by a ratio of 3 to 2, while on the Nasdaq, about 14 stocks fell for every 11 that rose.

(Additional reporting by Doris Frankel; Editing by Jan Paschal)

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Egyptian Court Postpones Ruling on Constitutional Assembly

Wissam Nassar

Egyptian police officers stood guard outside Egypt's Supreme Constitutional Court on Sunday, while supporters of President Mohamed Morsi protested near the entrance of the building.

CAIRO — Egypt’s highest court on Sunday postponed its much-awaited ruling on the legitimacy of the legislative assembly that drafted a new charter last week, accusing a crowd of Islamists of blocking judges from entering their building on what it called “a dark black day in the history of the Egyptian judiciary.”

Although hundreds of security officers were on hand to ensure that judges of the Supreme Constitutional Court could get into the court, and civilians came and went without any problems, the accusations intensified a standoff between the judges appointed under former President Hosni Mubarak and Egypt’s new Islamist leaders that has thrown the political transition into a new crisis 22 months after Mr. Mubarak’s ouster.

Upon approaching the court on Sunday morning, the judges said in a statement that they saw crowds “closing the entrances of the roads to the gates, climbing the fences, chanting slogans denouncing its judges and inciting the people against them.”

The judges were prevented from entering “because of the threat of harm and danger to their safety,” the statement said, calling it “an abhorrent scene of shame and disgrace.”

As a result, the judges announced that they were “suspending the court’s sessions” until they could resume their work without “psychological and physical pressures.”

Anticipation of the court’s decision on the new constitution had set off the latest political crisis. Fear that the court would dissolve the assembly and undo months of work led President Mohamed Morsi, of the Muslim Brotherhood’s political party, to announce 10 days ago that his edicts were not be subject to judicial review until the completion of the constitution.

Despite Mr. Morsi’s attempt, the same anticipation of dissolution drove the Islamist-dominated assembly to rush out a hurried constitution before the court could act and against the objections of Egypt’s secular parties and the Coptic Christian Church. Judges appointed by Mr. Mubarak have previously dissolved the elected Parliament and the first constitutional assembly.

The sudden effort by the president and his Islamist allies to push through a constitution over any objections from their secular factions or the courts has unified the opposition, prompted hundreds of thousands of protesters to take to the streets and set off a wave of attacks on a dozen offices of the Brotherhood’s Freedom and Justice Party. A judicial trade association has urged judges across the country to go on strike, and some of the highest courts have joined it.

Over the weekend, Mr. Morsi continued to push his plans for the new constitution, setting a national referendum on it for Dec. 15.

“I pray to God and hope that it will be a new day of democracy in Egypt,” he said in a nationally televised speech, calling for a “national dialogue.”

But his recent tone and actions reminded critics of the autocratic ways of his predecessor, and have aroused a new debate here about his commitment to democracy and pluralism at a time when he and his Islamist allies dominate political life.

Mr. Morsi’s advisers call the tactics a regrettable but necessary response to genuine threats to the political transition from what they call the deep state — the vestiges of the autocracy of former President Mubarak, especially in the news media and the judiciary.

But his critics say they hear a familiar paranoia in Mr. Morsi’s new tone that reminds them of talk of the “hidden hands” and foreign plots that Mr. Mubarak once used to justify his authoritarianism.

“I have sent warnings to many people who know who they are, who may be committing crimes against the homeland,” Mr. Morsi declared in an interview with state television on Thursday night, referring repeatedly to secret information about a “conspiracy” and “real and imminent threats” that he would not disclose. “If anybody tries to derail the transition, I will not allow them.”

Mayy El Sheikh contributed reporting.

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