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* * * * * TUESDAY, NOVEMBER 20, 2012 ~ VOL. CCLX NO. 120 WSJ.com HHHH $2 .00

Dow Jumps 207.65 Housing sales improve....... A3 Capital Journal........................ A4 Fear lingers in market.......... C1 Stocks see broad gains...... C4

CONTENTSCFO Journal................. B6Corp. News...... B2-3,7-9Global Finance........... C3Health & Wellness D1-4Heard on the Street C10Leisure & Arts........... D5

Opinion.................. A13-15Personal Finance...... C7Sports.............................. D6Stock Listings............ C8Stocks in the News C4Technology................... B4Weather....................... B10

DJIA 12795.96 À 207.65 1.65% NASDAQ 2916.07 À 2.2% NIKKEI 9153.20 À 1.4% STOXX600 268.58 À 2.2% 10-YR. TREAS. g 11/32 , yield 1.611% OIL $89.28 À $2.36 GOLD $1,734.00 À $19.70 EURO $1.2813 YEN 81.41

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Vital Signs

Builders are feeling bet-ter about the housing recov-ery. An index of confidenceamong home builders rosefive points to 46 in Novem-ber, a six-year high. Confi-dence has risen for sevenstraight months, but remainsweak. Residential construc-tion is picking up as moreconsumers take advantageof low interest rates thatcan make buying a homecheaper than renting. A3

Index of homebuilders’ confidence

Source: National Association ofHome Builders

'07 '09 '11’050

20

40

60

>

Hopes that lawmakers inWashington will reach a

deal on taxes and spendinggave investors new confi-dence and drove stock in-dexes to their best day intwo months. The Dow indus-trials climbed 207.65 points,or 1.6%, to 12795.96. A1, C4n Intel CEO Paul Otellinihas decided to retire in May,a surprise move that adds tothe challenges confrontingthe semiconductor maker. A1n J.P. Morgan named Mari-anne Lake to be the bank’schief financial officer, makingher one of the most powerfulwomen on Wall Street. C1n France was stripped of itstriple-A rating by Moody’s,which delivered a stingingcritique of efforts to boostthe nation’s economy. A10n Hostess and its strikingbakers union agreed to abankruptcy judge’s call for amediation session to try toavoid closing the company. B1n The SEC is stepping upoversight of stock exchangesas it broadens a probe into ad-vantages for high-speed trad-ers over ordinary investors. C1n A federal judge dismisseda lawsuit by former AIG chiefGreenberg against the NewYork Fed over the govern-ment bailout of the insurer. C3n Existing homes sold at aseasonally adjusted annualrate of 4.79 million units inOctober, the second-highestlevel of the year. A3n China, Japan and SouthKorea are preparing to set outthe framework for a three-way trade accord even as po-litical ties remain rocky. A8nToys “R” Us plans an onlineand brick-and-mortar push inChina in a bet that a growingmiddle class will see playtimeas increasingly essential. B1n Japan’s central bank keptmonetary policy unchangedon Tuesday, pushing backagainst political pressure forit to take stronger measures.n Tyson Foods’ earningsnearly doubled as the com-pany’s chicken business re-turned to profitability. B9n Jana Partners launched aproxy battle for change atfertilizer firm Agrium, namingfive candidates for electionto the company’s board. B8n Three health-care execu-tives were among a group ofsix people charged by fed-eral prosecutors in New Jer-sey with insider trading. C3

nThe Gaza conflict deepenedas the death toll passed 100.Hamas’s leader refused to haltrocket attacks unless Israelstops its bombing runs firstand completely lifts its block-ade on Gaza. Israel forcesstepped up their bombardmentof Hamas targets inside Gaza,including a strike that killed amilitant group’s propagandachief. Israel said personnel andgear were in place for a groundoffensive, but said it was opento a diplomatic solution. A9Turkey’s leader labeled Is-rael a “terrorist state” andcriticized world powers forbacking the Gaza bombings.n Obama called on Myan-mar to embrace American-style democracy during thefirst-ever presidential visitthere. Yangon agreed to freemore political prisoners. A8n Islamists fighting the Syr-ian regime rejected a rebelumbrella group. The EU calledthe coalition “legitimate repre-sentatives” of the people. A11n Iran has startedwork on a$10 billion gas pipeline to Syria,a Tehran news agency said.n Karzai accused the U.S. ofbreaking a pact on transfer-ring Bagram prison to Afghancontrol and demanded thatmany detainees be freed. A11nA health panel called for HIVtests for all Americans aged 15to 65 in a bid to slow thespread of the AIDS virus.A2nDemocrats were split onthe size of changes they wouldaccept in entitlement programsas deficit talks began. A4nChina named a new secu-rity chief but downgraded thepost, a move seen as resultingfrom the Bo scandal. A11n Colombia’s FARC rebelscalled a two-month cease-fireas they began peace talkswith the government. A11nCongolese troops protectingthe city of Goma battled rebelsafter Congo rejected a rebel de-mand for direct talks. A16nKenyans and ethnic Somalisrioted in Nairobi, a day after abomb ripped through a busand killed nine people. A16n A judge denied a request toblock part of the health-carelaw mandating insurance cov-erage for contraceptives. A6nAn ex-bankerwas sentencedto prison for locking a fakebomb to an Australian teenagerin a failed extortion bid. A11nHigh vitamin D levelswerelinked in a study to a lowerrisk of multiple sclerosis. D4

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TOO SAFE?

What’s News–i i i i i i

Intel Corp. was hit with thesurprise departure of its long-time chief executive as the com-pany, which makes most of thechips found in personal comput-ers, pushes to restore its swayover the high-tech sector amidan industry shift to smartphonesand other mobile devices.

Paul Otellini, Intel’s CEO since2005 and a fixture in Silicon Val-ley, informed the board onWednesday that he wanted to re-tire in May. The 62-year-old hadwidely been expected to stay in

his position until Intel’s manda-tory retirement age of 65.

Andy Bryant, Intel’s chairman,said Mr. Otellini’s decision cameas a surprise and wasn't based onany specific factor—other than af-ter eight years Mr. Otellini felt itwas time for a new leader to takeover the difficult job. “I did try toencourage him to stay longer,”Mr. Bryant said in an interview.“He said, ‘I think its time to makethe transition now.’”

Mr. Otellini is credited for aseries of advances at Intel, in-cluding cutting costs signifi-cantly, beating back competitionfrom Advanced Micro Devices

Inc., navigating through long-running antitrust investigationsand extending Intel’s lead inmanufacturing technology. Dur-ing his tenure, sales rose to anestimated $53.5 billion this yearfrom $38.8 billion, while profit isexpected to reach $10.9 billionfrom $8.6 billion in 2005. Still,shares have fallen about 4% sincehe became CEO, and are down17% since the end of August.

The management change un-derscores how quickly the land-scape has changed for Intel,which with software partner Mi-crosoft Corp. once dictated keytechnical standards and drew

much of the profit from the com-puting industry.

The overarching factor is that,since the introduction of AppleInc.’s iPhone in 2007, personalcomputers have been supersededby mobile phones as the focusfor most innovation in hardwareand software.

Intel, which sells more than80% of the chips that serve ascalculating engines in PCs, facesslumping demand for thoseproducts and has shown limited

Pleaseturntothenextpage

BY DON CLARKAND JOANN S. LUBLIN

Intel CEOWill Retire EarlyExit of Tech Veteran Otellini Comes as Chip Giant Grapples With Rise of Gadgets

PUEBLA, Mexico—Mexico istaking center-stage in the pro-duction of cars, where lowercosts and skilled workers are re-ordering the global auto market.

Six years ago, Mexico was theworld’s ninth largest exporter ofcars. Today the country isranked fourth—behind Germany,Japan and South Korea—withexports expected to total morethan 2.14 million vehicles thisyear.

One in 10 cars sold last yearin the U.S. was made in Mexico.Next year, every new taxi in NewYork’s fleet—made by NissanMotor Co.—will carry the“Hecho en Mexico” label. Mexicois now exporting vehicles toChina, and even helped Japankeep up with orders after lastyear’s tsunami.

Mexico’s Economy MinisterBruno Ferrari boasted that abatch of new factories plannedby car makers will help Mexicosurpass South Korea in a fewyears. Volkswagen AG, HondaMotor Co., General Motors Co.,Mazda Motor Corp., Fiat SpA,Daimler AG and Nissan have allannounced expansions in thepast year. Volkswagen’s Audiunit plans a new $1.3 billionplant.

For decades, the free worlddrove cars made primarily in theU.S., Germany and Japan. But aglobal shift toward smaller carshas put pressure on profit mar-gins, forcing car companies tofind lower-cost manufacturingelsewhere.

“Mexico is extremely competi-tive,” Carlos Ghosn, Nissan’schief executive, said in an inter-

PleaseturntopageA12

BY NICHOLAS CASEY

InMexico,Auto PlantsHit theGas

A Spirit Rises in Chicago Despite Bitter Reviewsi i i

Malört, Made From Wormwood, Is Acquired Taste; ‘Burnt Hair’

CHICAGO—For most drinkers,the first taste of Jeppson’sMalört tends to be the last.

“I’ve heard everything, from ittastes like earwax to Band-Aidsto burnt hair,” said Ian Penrose,a bartender at Rocking Horse inthe city’s hip Logan Squareneighborhood.

Taste isn’t the only problemfor the 80-year-old, gold-coloredspirit made from a Swedish rec-ipe. Jeppson’s Malört can’t befound outside of Chicago and afew suburbs. By the company’s

own admission, itsMalört is enjoyed byonly one out of every49 drinkers who try it.Even the company’sowner, Pat Gabelick, a69-year-old retiredsecretary who runs thecompany out of hercondo on Lake ShoreDrive, rarely drinks it.

Still, the liquor isfinding a growing fol-lowing among Chicago-ans as a kind of badge of honor.A shot of it is a way to punish adrinking buddy or out-of-towner.

A page on the websiteFlickr is dedicated tophotos of people withsour looks on theirfaces after samplingMalört for the firsttime. Mixologists likethe challenge of makingMalört’s bitter flavorsomewhat enjoyable.

On Wednesday, Tren-chermen, a restaurantin Chicago’s WickerPark neighborhood, is

dedicating the night to Jeppson’sMalört, celebrating one of the

PleaseturntopageA12

Jeppson’s Malört

BY MARK PETERS

‘The First Steps on What Will Be a Long Journey’

DUAL VISION: Hillary Clinton, who met with Aung San Suu Kyi a year ago in Myanmar as the U.S. pushed for greater reforms, greeted the democracyactivist on Monday with President Obama. A dramatic transformation has begun in the country but more was needed, the president said. A8

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sivais/A

ssociatedPress

Hopes that lawmakers inWashington will reach an agree-ment on taxes and spending gaveinvestors new confidence anddrove stock indexes to their bestday in two months.

Investors have spent a tensefew weeks since the electionwatching for smoke signals outof the nation’s capital for indica-tions that Democrats and Repub-licans are nearing a compromise.On Monday, they found reasonfor optimism.

President Barack Obama saidhe was “confident” an accordcould be reached, and congres-sional leaders have said they aremaking progress.

New data Monday alsoshowed existing home salesclimbed last month and builderconfidence rose to the highest

level in 6½ years.For investors, the stakes are

high. If no deal comes to pass bythe year-end deadline, a raft oftax hikes and spending cuts wouldautomatically come into effect,potentially dragging the U.S.economy into recession. As big aworry: the wrangling until thencould sendmarkets on a wild ride.

“Until we get much closer to adeal, we’re going to see morevolatility in the markets,” saidRuss Koesterich, chief invest-ment strategist at BlackRock Inc.“We’re going to be hostage tothese utterances out of D.C.”

After four straight losingweeks, the Dow Jones IndustrialAverage rose 207.65 points, or1.65%, to 12795.96, its biggestgain in two months. The NasdaqComposite rose 2.2%, driven by a7.2% surge in Apple Inc. Asianmarkets rose early Tuesday.

Investors and analysts cau-tioned the gains could quickly beerased should progress in Wash-ington stall, or if new weaknessemerges in Europe. Late Monday,Moody’s Investors Servicestripped France of its triple-Arating, citing its weak economy.

“As a money manager, youdon’t know where the bottom ofthe market is, but I don’t want tomiss the boat if the market goeshigher from here,” said ReedChoate, a portfolio manager atNeville, Rodie & Shaw, a NewYork firm with $1.2 billion undermanagement.

BY JONATHAN CHENG

Investors Show OptimismThat Cliff Will Be Avoided

Heard on the Street: A trickyspot for next Intel chief......... C10

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