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VOL. CCLXIV NO. 99 * * * * * * * *

SATURDAY/SUNDAY, OCTOBER 25 - 26, 2014

HHHH $ 2 .0 0

WSJ.com

WEEKEND

BootedUp

OFF DUTY

n Stocks soared this week,reclaiming ground lost earlierin October, but many inves-tors worried that this year’sseries of sudden dips and re-coveries may not be over. A1n The Dow rose 127.51 pointsFriday to 16805.41. The Nasdaqand S&P 500 also gained. B5

n The gap between the moreexpensive median price of newhomes and that of resales hasexceeded $70,000 for most ofthe economic recovery. A3

n About 25 eurozone banksfailed the ECB’s financial-health checks, though morethan half have taken steps toshore up balance sheets. B2

n The growing availabilityof cheap music has sappeddemand for downloads atApple’s iTunes store. B1

n Procter & Gamble will exitits Duracell battery businessamid CEO Lafley’s push for amore focused company. B1

n Chiquita dropped itsplanned merger with Fyffesand will turn instead to a co-alition of Brazilian firms. B1

n Ford’s profit fell 34% as afactory revamp and higherwarranty and recall costs cutNorth America earnings. B3

n UPS reported robustthird-quarter growth, fueledby a rise in package shipmentsin the U.S. and abroad. B4

n Up to 10 million of AT&T’smost lucrative wireless cus-tomers may be free to exit. B3

What’sNews

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Business & Finance

World-Wide

i i i

CONTENTSBooks........................ C5-10Corporate News B1,3-4Eating......................... D4-6Gear & Gadgets D1,11-12Heard on Street.......B14Letters to Editor.... A12

Opinion................... A11-13Sports............................ A14Stock Listings........... B13Style & Fashion.... D2-3Travel........................ D9-10Weather Watch...... B14Wknd Investor...... B7-9

s Copyright 2014 Dow Jones & Company.All Rights Reserved

>

InsideNOONAN A13

What WillObama SayOn Nov. 5?

The rapid response to theU.S.’s latest Ebola case

presents a sharp contrast tothe response to the initialcase in Dallas last month. A1 New York, New Jerseyand Connecticut institutedinvoluntary 21-day quaran-tines on health-care workersreturning from West Africa. A1

n North Korea probably hasthe capability to produce anuclear warhead that couldbe mounted on a rocket, atop U.S. commander said. A7

n Neither of the two Cana-dians who attacked soldiersand Parliament were on aterror watch list in the U.S. A9

n Seeking an alternative toHillary Clinton for 2016, someliberal donors are meetingwith potential challengers. A4

n A shooting at a Seattle-areahigh school left two studentsdead and four injured. A5

n Cameron warned a big newbill for EU membership couldencourage those in Britainwho want to leave the bloc. A8

n Putin blamed Ukraine forblocking implementation of apeace pact but said he hoped agas dispute can be resolved. A8n Ukrainians will electtheir first parliament Sun-day since pro-Europe pro-tests toppled Yanukovych. A8

n Brazil’s President Rousseffsought to widen her lead overher conservative challengerheading into Sunday’s vote. A9

School Shooting Leaves Two Dead

Ass

ocia

ted

Pres

s

Clamor for Stocks Resumes,But Fears Lurk in Market

Just 15 minutes into a recentbattle with Islamic State in thetown of Dhuluiya, Ibrahim Thiabwatched a group of Iraqi soldiersbreak ranks and flee in terror.

Mr. Thiab, a former generalunder Saddam Hussein, com-mands a unit of tribal fightersalso defending Dhuluiya, located45 miles northeast of Baghdad.Instead of criticism, though, thecombat veteran offered sympathy.

“They had no experience fighting, and they wereyelling and panicking,” said Mr. Thiab, who soughtout the frightened troops and promised them helpfrom his civilian forces. The former general wasmore pointed about Iraq’s battlefield performanceagainst Islamic State invaders: “Ridiculous,” hesaid.

The weakness of Iraq’s U.S.-trained military is agrowing international worry as Islamic State fight-ers threaten Baghdad, with attacks as close as 12miles west of the capital.

TRAINING GAP

On Iraq’s Front Lines,Army Struggles to Slow Militants

The stock market soared thisweek, reclaiming ground lostearlier in the month. But manyinvestors worried that, withstock prices high and the worldeconomy unsettled, this year’ssuccession of sudden dips andsharp recoveries may not beover.

Major indexes shook off thefears of global deflation thathave gripped U.S. and Europeanmarkets. A surge of economic

optimism and strong corporateearnings pushed the Dow JonesIndustrial Average up 425.00points, or 2.6%, this week, itsbiggest weekly gain since Decem-ber. The more volatile NasdaqComposite Index rose 5.3% forthe week, its best weekly per-centage gain since 2011. Both in-dexes, and the broad S&P 500,are less than 3% from returningto their September highs.

Better economic news fromEurope and solid U.S. earningsreports came on top of renewed

hopes that European centralbankers will take fresh steps tosupport Continental economies,perhaps stepping in to buy cor-porate bonds. International in-vestors continued to shift moneyto the U.S., where the economyhas been one of the world’ssteadiest and the Federal Re-serve remains committed to onlya very gradual tightening ofmonetary policy.

Please turn to the next page

BY E.S. BROWNING

WASHINGTON—Jim Ryanstands on the desert-white, neon-litrooftop of the Las Vegas Conven-tion and Visitors Authority’s head-quarters here, admiring the Wash-ington Monument and lookingdown on the balconies beneathhim.

One floor below is the pint-sizeterrace of law firm Baker & McKen-zie. “Funny for a big-shot lawfirm,” says Mr. Ryan, the author-ity’s director. To the north is theroof of the regal U.S. Chamber ofCommerce building. “A little bor-

ing—I don’t think they use itmuch,” Mr. Ryan says, notingthe lack of furniture.

To the west, he points outa span running the length of aluxury office block. “Theydon’t even have a view, youhave to lean over the railingto see anything,” he says.“Even the airport.”

And then there is Mr.Ryan’s party-perfect pent-house, with resort-style wo-ven furniture and a neon bor-der whose color can bechanged to suit one’s mood.

“I’m up here every god-

damned night,” Mr. Ryan says.“I’ve gained 20 pounds drink-ing Champagne since summer.”

Strict, century-old restric-tions on building heights in thenation’s capital make it diffi-cult for Washingtonians to copa good view of the city’s his-toric skyline, a situation thathas spawned yet another formof D.C. ladder-climbing: therace to the rooftop.

Every autumn, especiallyduring an election year, D.C.hosts a heavy calendar of polit-ical and social events, creating

Please turn to page A5

BY ELIZABETH WILLIAMSON

One of the Tightest Races in Washington Is Over Terracesi i i

Building Restrictions Limit Locales With a View; Balcony Envy

The U.S. and its Arab andWestern partners find themselveshaving to rely on an Iraqi armyill-prepared to fight IslamicState—even with the help of al-lied warplanes—as militantspress their campaign to toppleIraq’s government.

Iraq has gathered its mostcompetent troops to defend andfortify Baghdad, leaving the fightfor Dhuluiya and other Iraqi cit-ies outside the capital to a hodge-podge of army troops and irregu-lar forces: Sunni Muslimtribesmen, Shiite militias and ci-

vilians led by such Hussein-era military officers asMr. Thiab.

Iraq’s weak military is a legacy of the eight-yearrule of former Prime Minister Nouri al-Maliki, whoreplaced competent Sunni military officers innorthern and western Iraq with political loyalistsand fellow Shiite Muslims, U.S. military officialssaid.

Skilled Shiite military officers were passed overPlease turn to page A10

Sources: SIX Financial (Dow); WSJ Market Data Group (crude, dollar); RyanALM (yield) The Wall Street Journal

Uneven RecoveryStocks have roared back from a selloff earlier in the month...

... but moves in other markets have been more muted.Nymex crude-oil futures

Dow Jones Industrial Average,5-minute intervals

Yield on 10-year Treasury note WSJ Dollar Index

17300

15800

16300

16800

7Oct. 6 8 9 10 13 14 15 16 17 20 21 22 23 24

2.6

1.8Oct. 3 24

2.0

2.2

2.4

%$95

75Oct. 3 24

80

85

90

a barrel 78.5

76.5Oct. 3 24

77.0

77.5

78.0

16805.41t -1.2 %

from Oct. 6

$81.01t9.7%

2.273%t0.174pct. pts.

77.655t 1%

Photos:European Pressphoto Agency (left); Reuters (right)

TAKING REFUGE: In Marysville, Wash., north of Seattle, students andparents were reunited after gunfire broke out in a high-school cafeteria.The suspected shooter, a student, was among the dead. A5

IRAQ

IRAN

KUWAIT

TURKEY

SYRIA

SAUDIARABIA

JORDAN

200 miles

200 km

Baghdad

Mosul

Dhuluiya

By Matt Bradley inBaghdad and Julian E.Barnes in Washington

When the Centers for DiseaseControl and Prevention learnedthat a doctor in New York Citylikely had Ebola on Thursday, itdidn’t wait.

Its infectious diseases chiefand a top Ebola expert were de-ployed hours before test resultscame back for Craig Spencer,who had recently returned fromtreating Ebola patients in WestAfrica. A CDC team already inthe city reviewing hospitals’readiness for Ebola switchedgears and pitched in to help.

The rapid response to Amer-ica’s latest Ebola case presents asharp contrast to the response to

the country’s first case in Dallaslate last month. Hospital andpublic-health officials are apply-ing a host of lessons learnedthere to prevent any spread ofEbola in the nation’s most popu-lous city. They are aided by apublic far more aware of the vi-rus’s threat than just weeks ago.

On Friday, federal and stateofficials sought to assure Ameri-cans that the nation remainssafe. The White House said itwas reviewing U.S. protocols formonitoring and quarantiningtravelers headed to the U.S. fromthe three most Ebola-stricken

Please turn to page A6

Newest CaseShifts Nation’sEbola PlanApproach to Treating New York DoctorInfluenced by Lessons From Dallas

put under quarantine order, NewJersey Gov. Chris Christie said.

The unidentified woman, whoworked with Doctors WithoutBorders and had treated Ebolapatients in Africa, had no symp-toms when she arrived, but laterdeveloped a fever, officials said.She was placed in isolation atNewark’s University Hospital,the New Jersey medical center

Please turn to page A6

New York, New Jersey andConnecticut instituted involuntary21-day quarantines Friday onhealth-care workers returningfrom West Africa, stoking a debateover how to prevent the spread ofEbola without impeding humani-tarian aid to the stricken region.

The move, which followedThursday’s diagnosis of Ebola ina New York City doctor whocame home recently fromGuinea, was put into effect im-mediately: a health-care workerreturning from West Africa onFriday was stopped at NewarkLiberty International Airport and

By Betsy McKay,Jennifer Maloney

and Louise Radnofsky

State Quarantines StokeDebate Over Monitoring

BY BETSY MCKAY, ANA CAMPOYAND JENNIFER MALONEY

Questions, praise for doctor.. A6 Speeding up vaccine trials...... A6

Iraq says militants used chlorine gas...................... A10

More on the markets................. B5

review

DEEPTHREATCHINA’SSUBMARINEGAMBIT

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