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DJIA 16563.30 g 317.06 1.9% NASDAQ 4369.77 g 2.1% NIKKEI 15620.77 g 0.2% STOXX600 335.99 g 1.3% 10-YR. TREAS. g 1/32 , yield 2.561% OIL $98.17 g $2.10 GOLD $1,281.30 g $13.60 EURO $1.3390 YEN 102.79

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CONTENTSBusiness Tech..............B5Corporate News.....B2-4Global Finance.............C3Heard on Street..........C8In the Markets.............C4Mansion...................M1-10

Market Data.............C5-7Music............................D5-6Opinion.......................A9-11Sports.............................D10U.S. News...................A2-4Weather Watch..........B6World News.............A5-7

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What’sNews

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World-Widen Israel and Hamas agreedto a three-day humanitariancease-fire in the Gaza conflictbeginning Friday morning.Fighting in Gaza raged for a24th day and Israel called up16,000 more reservists. A1, A5n CIA agents spied on com-puters used by a Senatepanel probing the agency’sinterrogation program, an in-ternal CIA report found. A1n Investigators trying to re-cover the remaining victimsfrom Flight 17 reached thecrash site in Ukraine for thefirst time in nearly a week. A6nThe U.S. is fashioning anew strategy to prosecute Syr-ian war crimes based on a de-fector’s photos of atrocities. A4nA highway-funding billcleared Congress, only hoursbefore the government was setto cut payments to states. A4nHouse GOP leaders put offa vote on a bill to deal withyoung illegal immigrants amidconservative opposition. A4n California said health-lawpremiums will rise 4.2% nextyear, an increase curbed by alarge pool of enrollees. A3n Liberia, Sierra Leone andthe U.N. stepped up plans tofight the Ebola outbreak. A7nMalaria-drug resistance hasbecomewidespread in South-east Asia, a study found. A7n Islamist militias claimedto have taken control ofBenghazi, Libya, after de-feating army units. A5n John Tefft was confirmedby the Senate as the new U.S.ambassador to Russia.

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France’s Iliad made a $15billion offer for 56.6% of T-

Mobile US, in a challenge tothe telecom company’splanned deal with Sprint. B1n U.S. and European stockstumbled on economic and geo-political concerns. The Dow slid317.06 points to 16563.30, eras-ing its gains for the year.A1n Some investors who fore-saw the housing bubble warnof trouble ahead, citing junkbonds and European debt. C1n Junk bond prices tumbledon worry that the rally inrisky debt will end as U.S.economic growth picks up. C1n Argentine stocks fell afterthe country’s debt default, butinvestors held out hope thecrisis could be resolved. C1nAsset managers won a vic-tory as regulators agreed tofocus on products and activi-ties, not individual firms. C1nU.S. labor costs rose at afast clip last quarter, a sign atightening labormarket may bepushing firms to boost pay. A2n L-3 said employees mis-stated sales and costs. Thefirm booked an $84 millioncharge and its shares slid. B3n Kellogg said profit fell 16%and reduced its outlook ascereal sales weakened. B1n Exxon’s net rose 28%, de-spite pumping oil and gas atits lowest rate since 2009. B4nSony cut its smartphone-sales forecast, even as it postedstrong quarterly results. B3nValeant said profit andsales climbed as it again madethe case to buy Allergan. B3

Business&Finance

WASHINGTON—Central Intel-ligence Agency officers snoopedon computers used by a Senatecommittee investigating theCIA’s interrogation program, aninternal agency report has con-cluded—a critical finding in abitter standoff between twogovernment branches.

CIA Director John Brennanapologized to key senators, whowere briefed this week on theCIA inspector general’s report,the agency said on Thursday.

The finding bolsters allega-tions by Sen. Dianne Feinstein(D., Calif.), the Senate intelli-gence committee chairwoman,who has denounced what shedescribed as a CIA search ofSenate computers that may have

violated the Constitution’s sepa-ration of powers and FourthAmendment protections againstunreasonable searches.

Sen. Mark Udall (D., Colo.), amember of the intelligencepanel, on Thursday called forMr. Brennan’s resignation aftera briefing on the report. “CIAunconstitutionally spied on Con-gress,” he said. “These offenses,along with other errors in judg-ment by some at the CIA, dem-onstrate a tremendous failure ofleadership, and there must beconsequences.”

The CIA declined to commenton Mr. Udall’s call for Mr. Bren-nan’s resignation.

The CIA has also alleged thatSenate staffers improperly ac-cessed an agency document, and

Pleaseturntothenextpage

BY SIOBHAN GORMAN

CIA Says Officers SpiedOn Senate Computers

The calm that pervaded finan-cial markets for months evapo-rated as stocks tumbled in Europeand the U.S., with the Dow indus-trials erasing its gains for theyear after suffering its worst one-day loss since February.

U.S. stocks had hit records asrecently as last week despite geo-political strains, worries aboutEurope’s economy, and the possi-bility that the Federal Reservewould pull back on its easy-money policies sooner than ex-pected.

Still, many investors had be-come increasingly nervous themarket could turn south on a

dime.It did on Thursday. The Dow

Jones Industrial Average dropped317.06 points, or 1.9%, to 16563.30,snapping a streak of five straightmonthly gains. The declines be-gan in Europe, as the Stoxx Eu-rope 600 lost 1.3%, and Germany’sDAX fell 1.9%. In the U.S., junkbonds also joined the selloff.

Traders said stocks buckledunder the cumulative weight oflong-brewing economic and geo-political worries, coupled with aspate of weak earnings reports inEurope and the U.S. Some inves-tors said an upbeat reading fromthe labor market sowed concernsabout the Fed possibly raisingrates quicker than many investorsanticipated.

Moreover, Argentina defaultedon its debt, and Portugal’s sec-ond-largest bank by assets re-ported a record quarterly loss af-ter it found more bad-loanexposure to its parent than it hadexpected.

Taken separately, traders saidPleaseturntothenextpage

BY CHRIS DIETERICH

Stock Tumble Erases Year’s GainsDow Drops More Than 300 Points as Worries Over Global Economy, Ukraine Shatter Market Calm

Shrouded Syrian Defector Describes Assad’s Bureaucracy of Death

Jonathan

Ernst/Re

uters

In the weeks after Malaysia Airlines Flight 370vanished, most likely in the Indian Ocean, Australianofficials said they knew less about the area theywere exploring than is known about the surface ofthe moon.

It’s actually even worse than that.Surveys of Mars and Venus are considered

around 250 times more accurate than existing mapsof the underwater region where Flight 370 searchersare looking—a lightless, virtually lifeless seabed.

There, the contours of the ocean floor have onlybeen approximated by bouncing satellite radar offthe surface of the sea, or by taking low-resolution

BY DANIEL STACEY

UNCHARTED WATERS

Deep-Sea Hunt RebootsFor Missing Malaysia Jet

sonar soundings from boats that passed through thearea a generation ago. Research indicates the pres-ence of dramatic vistas, including a volcanic plateauand mountains roughly the height of the Swiss Alps.There is so little bacteria that scientists believe awhale carcass would take decades to decomposedown there.

The hunt for Flight 370 has been overshadowedin recent days by the Malaysia Airlines jet shotdown in Ukraine but it remains one of the greatestmysteries in aviation history. Unlike the Ukrainetragedy, which left tons of debris, not even a straysuitcase has been found from Flight 370, which dis-appeared en route from Kuala Lumpur to Beijing on

PleaseturntopageA8

Surprise BidderFor T-Mobile

Reuters

INCOGNITO: A former military photographer code-named Caesar told Congress of a trove of pictures that could help war-crime prosecutions. A4

NEW SUITOR: Xavier Niel’s Iliadis now competing with Sprint forthe U.S. cellphone company. B1, C8

Markets Slump Bearish investors have new

targets..................................... C1 Efforts continue to strike

Argentine deal...................... C1 Follow coverage of Friday’s

jobs report at WSJ.com

Source: WSJ Market Data Group The Wall Street Journal

Dow Jones Industrial Average

15500

16000

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Jan. Feb. March April May June July

Thursday

16563.30Down 0.08%year to date

Dec. 3116576.66

BÉRCHULES, Spain—It’s thattime of year when this tinymountain town undergoes astrange transformation.

Beneath the searing Mediter-ranean sun, workmen hang holi-day lights around the plaza. Onresidential balconies, decorationsof snowmen and angels take theplace of flowerpots and lawnchairs. Christmas tunes drownout the whir of weed cutters.

Saturday night, some 8,000people—or about 10 timesBérchules’s population—are ex-pected to gather in the centralsquare to count down the lastseconds to midnight. Then thewhite stuff begins to fall fromthe sky and corks begin popping.

It’s “New Year’s Eve in Au-

gust” in Bérchules, the hamletthat has been ringing in the NewYear belatedly, but with rare en-thusiasm, for the pasttwo decades.

The blowout on thefirst Saturday of Augusthas put this communityon the map at a timewhen hundreds of othervillages have turnedinto ghost towns amidsweeping demographicchanges in Spain.

“Small towns aredisappearing all over,”says José Martín Ca-ñete, a transplantedBérchules native whocomes home for theholidays each August. “But ev-eryone still talks about the placein the mountains that starts the

New Year seven months late.”The tardy “Nochevieja” cele-

bration comes complete with aStyrofoam snow-squall,nativity scenes, homedecorating contests,shortbread cookies,marching bands andfireworks.

Bérchules’s oddlytimed fiesta grew out ofwhat were literallysome of the darkesthours folks here haveever known. On the eve-ning of Dec. 31, 1994,not too long beforemidnight, a power linesnapped and the elec-tricity went out in

Bérchules. “One minute you werechilling Champagne and prepar-

PleaseturntopageA7

BY MATT MOFFETT

10, 9, 8, 7, 6, 5, 4, 3, 2, 1…¡Feliz Año Nuevo!i i i

Spanish Village Saves Big Countdown for August; Snowmen and Angels

Bérchules angel

Israel and Hamas agreed to athree-day cease-fire in the Gazaconflict with the hope of forginga more lasting peace.

U.S. Secretary of State JohnKerry and U.N. Secretary-GeneralBan Ki-moon announced thetruce, set to begin Friday morn-ing, in a joint statement issued inNew Delhi.

A spokesman for Hamas, theIslamist group that rules Gaza,confirmed that all militant fac-tions in the Palestinian territoryhad agreed to suspend violence.Israeli Prime Minister BenjaminNetanyahu’s office confirmed theagreement.

Israel, Hamas and other Pales-tinian factions would travel toCairo immediately for negotia-tions aimed at building thecease-fire into a more lastingtruce, the U.S. and U.N. said.

During the pause, Israel won’tpull back its forces inside Gaza.

“We urge all parties to actwith restraint until this humani-tarian cease-fire begins, and tofully abide by their commitmentsduring the cease-fire,” the jointstatement said.

The truce will be used to de-liver urgently needed humanitar-ian supplies to Gaza residents,and to allow for the burial ofthose killed and to tend to thewounded. Other aid agencies willwork to repair water and energyinfrastructure that has beendamaged or destroyed.

“This is not a time for con-gratulations and joy or anythingexcept a serious determination, afocus by everybody to try to fig-ure out the road ahead,” Mr.

PleaseturntopageA5

By Jay Solomon,JoshuaMitnick

andWilliamMauldin

Israelis,HamasAgreeTo Truce

Islamist surge shakes MiddleEast powers..................................... A5

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