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* * * * * * WEDNESDAY, DECEMBER 19, 2012 ~ VOL. CCLX NO. 144 WSJ.com HHHH $2 .00

doubled this year, fell 10% onTuesday to $7.79. Shares ofSturm, Ruger & Co. fell 7.8% to$40.60. Cabela’s Inc., a big gunretailer, fell 6% for a second con-secutive day; Dick’s stock rose2%.

On Tuesday, President BarackObama spoke about gun control

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that police say Adam Lanza usedin last week’s shootings.

“We have to get control ofthis,” said Larry Stone, a mem-ber of Dick’s board, in an inter-view Tuesday. Mr. Stone said hefully supported the decision toremove the semiautomatic gunsfrom Dick’s shelves. “I hopeother people follow suit,” hesaid.

Shares of gun makers andsome retailers have been af-fected. Smith & Wesson HoldingCorp., whose stock had nearly

America’s thriving gun indus-try, which has been riding highon a surge in sales, is under in-creasing pressure in the wake ofFriday’s elementary school mas-sacre.

Responding to a nationalwave of revulsion over the 27murders in Newtown, Conn., re-tail chain Dick’s Sporting GoodsInc. on Tuesday suspended salesof semiautomatic rifles at its480 stores, while Wal-MartStores Inc. deleted from its web-site a listing for one such rifle.

Private-equity firm CerberusCapital Management LP saidTuesday it would try to sellFreedom Group Inc., the manu-facturer of the Bushmaster rifle

NASHVILLE, Tenn.—NatalieSkipper started feeling under theweather a fewweeks after return-ing home from volunteering at aSouth Africa hospital. “The worstflu I had ever had in my life,” shesaid.

Her temperature hit 105 de-grees. She had trouble walking.

She didn’t have the flu.Ms. Skipper, a 34-year-old

physical therapist with a love oftravel, was infected with tubercu-losis. And not just any tuberculo-sis. She brought to Tennessee astrain that can’t be cured with themost potent and common drugsused against the deadly disease.Multidrug-resistant TB is at epi-demic proportions in some partsof the world—a growing problemthe U.S. is surprisingly unpre-pared for.

The U.S. beat back multidrug-resistant tuberculosis in the1990s. Today, however, a newthreat is emerging as drug resis-tance worsens abroad and farmore dangerous strains developand spread, including some thatare all but untreatable with stan-dard drugs.

In the U.S., rates of multidrug-resistant tuberculosis remain low,but are starting to inch back up, ashundreds of millions of Americancitizens and foreigners alike travelto the U.S. from abroad every year.At the same time, funding and ex-pertise are in decline.

“What’s worrying me person-ally is that I’m seeing a resur-gence of complacency” in the U.S.health-care community, says Ken-neth Castro, director of the divi-sion of tuberculosis eliminationat the Centers for Disease Controland Prevention.

Ms. Skipper’s infection tookdoctors more than a year to prop-

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WASHINGTON—The State De-partment suffered from “sys-temic failures” in its response tothe terrorist threat in Benghazi,Libya, and had insufficient num-bers of security on the ground,according to an independentpanel investigating the Sept. 11attack on the U.S. consulatethere.

The report confirms that in-telligence agencies and theWhite House erred in initial ac-counts that the assault in Libyasprang from public outrageagainst a U.S.-made anti-Islamicvideo, and is likely to rekindle

Republican criticism about theadministration’s handling of theattack, which was a key issue inthe weeks leading into the Nov.6 presidential election.

The Accountability ReviewBoard study, conducted by aboard appointed by Secretary ofState Hillary Clinton and led byAdm. Mike Mullen, a retired topPentagon official, and ThomasPickering, a longtime U.S. diplo-

mat, faulted a “lack of proactivesenior leadership” for security inBenghazi, and said physical se-curity was “profoundly weak.”

“Americans in Benghazi andtheir Tripoli colleagues did theirbest with what they had, which,in the end, was not enough toprevent the loss of lives,” thenearly 40-page report concludes.U.S. Ambassador ChristopherStevens and three other Ameri-cans were killed in the assault.

Mrs. Clinton said in a letter toCongress Tuesday that the StateDepartment would increasefunding for security in overseas

missions, hire more diplomaticsecurity, and create a new officefocused on high-threat postings.

“It is our responsibility toconstantly improve, to reducethe risks our people face, and tomake sure that they have the re-sources they need to do theirjobs,” Mrs. Clinton said.

The study confirmed therehad been security threats inBenghazi in the weeks leadingup to the Sept. 11 attack on theU.S. consulate in the city, and itsnearby annex.

The investigation, however,PleaseturntopageA8

By Adam Entous,Siobhan Gorman

andMargaret Coker

State Faulted inLibyaAttackVideoDetails SecurityWeakness;MobOverwhelmed Inadequate Local Forces

By James R. Hagerty,Ann Zimmermanand Sharon Terlep

After Shooting, NewPressureOn Thriving Gun Industry

BY BETSY MCKAY

TB’s GlobalResurgenceAmplifiesU.S. Risk

A bus carrying children to school for the first time since Friday’s Connecticut shootings passes a funeral for 6-year-old Jessica Rekos. Sandy Hook Elementary, where the shootings took place, remained closed.

John

Moore/G

etty

Images

What Does It Take to Fool a Snake?Send In the Robot

i i i

Biologists Use Mechanical Squirrels, FrogsIn Their Research; ‘Snooki’ the Sage Grouse

The snake in the grass didn’tseem to believe in Rulon Clark’ssquirrel, which could complicatematters for the professor.

Dr. Clark had carried hisprized ground squirrel into thehills near San Jose, Calif., lastyear to study the way squirrels’behavior affects predators. Heplaced it by a grass patch heknew concealed a rattlesnake.

The snake, perhaps not sur-prisingly, sprang and sank itsfangs into the rodent. Less pre-dictable, for the rattler, waswhat happened next: The squir-rel glided backward, its face fro-zen in a placid expression.

The snake flicked its tongue—a defensive signal—as if therewere something odd about thissquirrel.

There was: It was a robot.“It’s likely that the snake real-

ized as soon as it bit the fakesquirrel that it bit something

that wasn’t a live animal,” saysDr. Clark, an assistant biologyprofessor at San Diego StateUniversity.

Trying to dupe real animalswith fake ones is an increasinglypopular methodology among bi-ologists. The aim, they say, is toconduct focused, repeatablestudies on how animals respondto other creatures. Spurring the

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Robotsquirrel

BY JOHN LETZING

A Sad Journey as School Resumes

CONTENTSCorporate News B2-4,7Global Finance........... C3Heard on the Street C14Home & Digital.. D2,3,5In the Markets.......... C4Leisure & Arts............ D6

Managing...................... B5Opinion.................. A17-19Property Report. C8-11Sports.............................. D7U.S. News............... A2-11Weather Watch........ B8World News....... A12-15

DJIA 13350.96 À 115.57 0.9% NASDAQ 3054.53 À 1.5% NIKKEI 9923.01 À 1.0% STOXX600 280.46 À 0.5% 10-YR. TREAS. g 19/32 , yield 1.827% OIL $87.93 À $0.73 GOLD $1,669.50 g $27.50 EURO $1.3229 YEN 84.20

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Vital Signs

Conditions for new-homeconstruction are improving.Builder confidence in themarket for new single-fam-ily homes has climbed foreight consecutive months,the National Association ofHome Builders said. Thegroup’s sentiment indexrose in December to 47, asix-year high. Readingsabove 50 signal more build-ers view sales conditions asgood than poor.

NAHB sentiment index,seasonally adjusted

Source: National Association ofHome Builders

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Facebook’s Instagram wascaught in an Internet up-

roar over new terms of use forits photo-sharing service, asbattle lines sharpen betweenFacebook and Twitter in afight to become the prime on-line hub for photo sharing. B1n Knight Capital agreed topursue a merger with high-speed trading firm Getco ina deal that would valueKnight at about $1.8 billion. C1n Oracle posted a big jumpin quarterly profit, alleviat-ing some fears that big busi-nesses slashed tech spendingin the face of the fiscal cliff. B3n The Dow industrials endedat their highest level in twomonths, rising 115.57 points, or0.9%, to 13350.96, with energyand tech shares leading. C4n Samsung made an unex-pected about-face in its patentwar with Apple, dropping abid to seek sales bans on someApple products in Europe. B3n Google received positivesignals from the EU on pros-pects for an antitrust settle-ment, but U.S. regulators de-cided they need more time tocomplete their own probe. B4n LVMH named MichaelBurke to lead Louis Vuitton,succeeding Jordi Constans,who is leaving after less thana month for health reasons. B1nMorgan Stanley is in a tugof war over deferred compen-sation with a banker it firedafter he was involved in a con-frontation with a taxi driver. C1n A guilty verdict againsttwo hedge-fund managers forinsider trading might helpprosecutors get a step closer toSAC’s Cohen, lawyers say. C1n The heads of several ofthe largest U.S. trading ven-ues told lawmakers that mar-kets have become too com-plex and need an overhaul. C3n The SEC levied a $250,000fine on Peter Beck, a day-trad-ing heavyweight who oversawan empire of traders who al-legedly gamed U.S. markets. C4n Nielsen agreed to acquireArbitron for $1.26 billion,looking to expand its abilityto measure media usageacross different outlets. B4n The Justice Departmentsaid it reached a settlementwith Pearson’s PenguinGroup (USA) in an antitrustprobe of e-book pricing. B7n The central banks of Swe-den, Turkey and Hungary cuttheir key interest rates, partlyin a bid to counter the impactof the euro-zone crisis. A15n Facebook’s Zuckerberg saidhe is donating roughly $500million worth of stock to aSilicon Valley foundation. B2nTimeWarner Cable is drop-ping Ovation in the wake of awarning by the carrier’s CEOover programming costs. B7n Toyota agreed to pay $17.35million in civil fines for failingto report safety defects to U.S.regulators within five days. B2

n Gun-control measureswon White House support.The proposals include back-ground checks at gun showsand for other private sales,ideas likely to face oppositionfrom congressional Republi-cans and the gun lobby.Obama also wants to renewan assault-weapon ban andconsider limits on high-ca-pacity magazines. RetailerDick’s suspended sales ofsemiautomatic rifles. A4, A6Buyout firm Cerberus said itwould try to sell the makerof the rifle used in lastweek’s school massacre.n A probe of the attack onthe U.S. consulate in Beng-hazi, Libya, faulted the StateDepartment for its responseto the terror threat and a lackof sufficient security. A1, A8nHouse GOP leaders pro-posed a “Plan B” if budgettalks fail that would let taxesrise only for income over $1million. It was seen as a ma-neuver by Boehner to pressureObama for concessions. A11nNearly all taxpayerswouldowemore next year if Obamaand Boehner close the deal theyhave been negotiating.A10nNBC reporter Richard En-gel, who was freed after fivedays of captivity in Syria, saidhe believed his kidnapperswere Assad loyalists. A13n Iraqi President Talabanisuffered a stroke and was inintensive care, raising newuncertainty about the coun-try’s political future. A15n Gunmen in Pakistan killedfive women working on a po-lio-vaccination program thatTaliban insurgents say is acover for espionage. A15nPakistan’s defense industryis building a drone fleet that ithopes can take the place of theU.S. in attacking militants. A13n The West Bank has seenmounting clashes between Is-raeli soldiers and Palestinianprotesters, spurring concernof a new uprising there. A13nThe Corps of Engineers be-gan removing rocks from theMississippi, but firms worrytraffic could be halted. A2nMore students are takingcommunity-college courses athigh schools, a low or no-costway to gain college credits. A3n South Africa’s ruling ANCre-elected Zuma as its leader,virtually ensuring he willcontinue as president. A12nHouse and Senate negotia-tors agreed on a defense billthat keeps curbs onWhiteHouse’s ability to transfer de-tainees out of Guantanamo.n The Pentagon is investigat-ing its top intelligence officerover information he gave tomakers of a movie about theraid that killed bin Laden. A2n Fraternity members atNorthern Illinois Universitywere charged with hazing af-ter a freshman died. A2nVenezuela said Chávez hasa respiratory infection follow-ing his cancer surgery. A15

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gun-control measures....... A4 How far to restrict guns

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a long road to recovery... A15

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