>>> US Close. Dow +0,17% S&P-0,03% Nasdaq-0,27%

Closing Market Summary: Stocks End Down Week on Mixed Note

The major averages wrapped up the week on a mixed note as the Dow Jones Industrial Average added 0.2% while the Nasdaq shed 0.3%. For its part, the S&P 500 ended flat. Today's mixed finish was an appropriate reflection of a session that featured some mixed signals. On that note, seven of ten sectors ended in the red but market breadth remained positive throughout the trading day. In all likelihood, light volume played a part as some participants were kept away by the winter storm that has encompassed the Northeast. At the end of the day, only 533 million shares changed hands on the NYSE floor. Stocks began the session on an upbeat note, but the Nasdaq was quick to slip from its early high. The index was pressured by its largest component, Apple (AAPL 540.98, -12.15), which lost 2.2%. Biotechnology also weighed on the Nasdaq as the iShares Nasdaq Biotechnology ETF (IBB 226.03, -1.06) shed 0.5%. The health care sector; however, outperformed with a gain of 0.2%.

The S&P 500 followed in the footsteps of the Nasdaq in the early afternoon, but the indices diverged once again during the final hour when the S&P 500 made an unsuccessful run at its opening high. Seven sectors posted losses while financials (+0.6%), health care (+0.2%), and industrials (+0.3%) spent the entire session in the green.

Notably, the financial sector was underpinned by large banks as Bank of America (BAC 16.41, +0.31), Citigroup (C 53.40, +1.13), and JPMorgan Chase (JPM 58.66, +0.45) all gained between 0.8% and 2.2%.

Elsewhere, gains in the industrial sector were paced by airlines. Delta Air Lines (DAL 29.23, +1.53) and United Continental (UAL 39.95, +2.22) soared 5.5% and 5.9%, respectively, while the broader Dow Jones Transportation Average added 0.5%. Switching gears, the commodity market saw a replay of Thursday as oil fell while gold rallied. Crude oil slid 1.6% to $93.96/bbl while gold futures advanced 1.1% to $1238.40/ozt. Treasuries ended little changed with the 10-yr yield at 2.99%.

WSJ : General Mills Starts Making Some Cheerios Without GMOs

General Mills has started producing Cheerios free of genetically modified content, making the 73-year-old breakfast cereal one of the highest-profile brands to change in the face of growing complaints over such ingredients from activist groups and some consumers.
The change—which only affects original Cheerios, not other varieties like Honey Nut Cheerios—has been in the works since about a year ago, when General Mills began working to change manufacturing for Cheerios to eliminate ingredients containing genetically modified organisms, or GMOs.
The company started manufacturing the GMO-free cereal several weeks ago, and expects it to be available to consumers "shortly," once the products have made their way through the distribution system and onto shelves. The Cheerios will carry the label "Not Made With Genetically Modified Ingredients," though the company notes that they could contain trace amounts due to contamination in shipping or manufacturing.

Critics of GMO use in foods called attention to the Cheerios move Thursday, hailing it as a major victory. Advocacy groups have raised concerns about possible health problems from eating foods with GMOs, which are crops like corn grown from seeds genetically engineered for desirable traits like pest resistance. The groups have promoted consumer campaigns in some states to mandate labeling of GMOs in food, and targeted specific brands—including Cheerios—and to change their policies.

Most big food companies have rebuffed such efforts, arguing that there is no evidence of any health problems resulting from GMOs despite decades of use. The food companies also generally have refused voluntarily labeling, saying it is costly and will give consumers a misconception that GMOs are harmful.

"There is broad consensus that food containing GMOs is safe, but we decided to move forward with this in response to consumer demand," said Mike Siemienas, spokesman for General Mills.

The Minneapolis-based company said it chose Cheerios because the primary ingredient is oats, a crop that isn't grown from genetically modified seeds, so the transition just required it to find new sources of cornstarch and sugar.

"Even that required significant investment," Mr. Siemienas said. He didn't provide a figure, but said that the hurdles would make it "difficult, if not impossible" to make Honey Nut Cheerios and other varieties without GMOs.

GMO Inside, a campaign that advocates GMO labeling, said Cheerios is the first major brand of packaged food in the U.S. to make the switch from containing GMOs to marketing itself as non-GMO. Some foreign countries have restricted GMO use in food for years.

Other companies have also said they plan to change. Whole Foods Market Inc. said it will require by 2018 that all food in its stores containing GMOs, disclose the fact on labels. Chipotle Mexican Grill Inc. and Kellogg Co.'s Kashi, which markets its cereals and snacks as having "natural ingredients," have both said they are working on taking GMOs out of their food.

But it is a lengthy and expensive process. Kashi says only 1% of U.S. cropland is organic and around 70% of packaged foods contain GMOs.

WSJ : Hezbollah Upgrades Missile Threat to Israel

Hezbollah Upgrades Missile Threat to Israel
Components Said to Have Already Been Moved to Lebanon from Syria

U.S. officials believe members of Hezbollah, the militant group backed by Iran, are smuggling advanced guided-missile systems into Lebanon from Syria piece by piece to evade a secretive Israeli air campaign designed to stop them.

The moves illustrate how both Hezbollah and Israel are using Syria's civil war as cover for what increasingly is seen as a complex and high-stakes race to prepare for another potential conflict—their own—in ways that could alter the region's military balance.

Some components of a powerful antiship missile system have already been moved to Lebanon, according to previously undisclosed intelligence, while other systems that could target Israeli aircraft, ships and bases are being stored in expanded weapons depots under Hezbollah control in Syria, say current and former U.S. officials.

Such guided weapons would be a major step up from the "dumb" rockets and missiles Hezbollah now has stockpiled, and could sharply increase the group's ability to deter Israel in any potential new battle, officials say.

The movements appear to serve two purposes.

Iran wants to upgrade Hezbollah's arsenal to deter future Israeli strikes—either on Lebanon or on Iran's nuclear program, U.S. and Israeli officials say. In addition, these officials said they believe the transfers were meant to induce Hezbollah to commit to protect Syrian President Bashar al-Assad as well as supply lines used by both his regime and Hezbollah.

Israel struck inside Syria at least five times in 2013, seeking to take out systems bound for Hezbollah without provoking a direct confrontation.

U.S. and Israeli officials say the airstrikes have stopped shipments of ground-to-air SA-17 antiaircraft weapons and ground-to-ground Fateh-110 rockets to Hezbollah locations in Lebanon. Some originated from Iran, others from Syria itself.

Nonetheless, as many as 12 antiship guided-missile systems may now be in Hezbollah's possession inside Syria, according to U.S. officials briefed on the intelligence. Israel targeted those Russian-made systems in July and again in October with mixed results, according to U.S. damage assessments.

The U.S. believes Hezbollah has smuggled at least some components from those systems into Lebanon within the past year, including supersonic Yakhont rockets, but that it doesn't yet have all the parts needed there. "To make it lethal, a system needs to be complete," said a senior defense official.

Hezbollah already has around 100,000 rockets, according to Israeli intelligence estimates, but those are primarily unguided weapons that are less accurate. Its longer-range rockets are spread across Lebanon, meaning Israel's next air campaign—should one come—would have to be broad, Israeli officials have told their U.S. counterparts, according to American officials in the meetings.

Hezbollah's possession of guided-missile systems would make such an air campaign far riskier.

Current and former U.S. officials say Iran's elite Quds Force has been directly overseeing the shipments to Hezbollah warehouses in Syria. These officials say some of the guided missiles would allow Hezbollah to defend its strongholds in Lebanon, including Beirut, and attack Israeli planes and ground targets from regime-controlled territory in Syria.

Israel's Iron Dome missile-defense system can intercept and destroy short-range rockets. Its Arrow missile-defense system can intercept the sort of long-range ballistic missiles Iran possesses. A third system the Israelis are developing to deal with midrange guided missiles, called David's Sling, won't be operational until 2015 at the earliest.

Israeli officials say they are content for now to watch enemies No. 1 and No. 2—Hezbollah and Iran on one side, al Qaeda on the other—kill each other next door. U.S. intelligence agencies believe that Mr. Assad can hold on to a rump state bordering Lebanon and the Mediterranean for the foreseeable future, but won't be able to retake the entire country, U.S. officials say.

"It is arguably in Israel's interest to exploit the chaos without becoming embroiled in it," said Steven Simon, executive director of the International Institute for Strategic Studies in Washington and a former senior Obama administration official.

Israeli leaders made clear early on in the Syrian conflict that any transfers of advanced missile systems or chemical arms to its enemies would cross Israel's "red line."

Both the advanced missile and chemical programs are overseen by the same elite Syrian military-research center, which has close ties to Hezbollah, according to current and former U.S. officials. Syria agreed last year to give up its chemical weapons, a process that has yet to be completed.

The Organization for the Prohibition of Chemicals Weapons and the United Nations said last weekend that they would miss a Dec. 31 deadline for removing the most dangerous weapons because of volatile security conditions and logistical challenges. No new deadline has been set; the situation will be reassessed at a meeting of the OPCW's executive board on Jan. 8.

Since fighting a monthlong war with Hezbollah in 2006, Israel has ramped up an eavesdropping network to tap communications among Hezbollah, Iranian and Syrian regime figures to detect arms shipments, officials said.

Israeli officials said alarm bells sounded in late 2012 over a push by Iran to upgrade Hezbollah's arsenal with advanced guided-missile systems.

U.S. and Israeli spy agencies received intelligence that Iranian leaders, including the commander of the Quds Force, Qasem Soleimani, were increasingly concerned that the Assad regime was in danger of being overrun by rebels.

That meant Iran's window might have been closing to supply advanced weaponry to Hezbollah, Gen. Soleimani argued, according to officials briefed on the intelligence. From Tehran's perspective, Hezbollah's rockets were their first line of defense against an Israeli strike.

Current and former U.S. officials said the Assad regime also saw the weapons transfers as a way to fortify its relationship with Hezbollah, which it relies upon for survival.

Senior Israeli air force generals pushed for action to block the transfers, said Israelis familiar with the security deliberations.

To take out these systems without crossing into Syrian airspace, commanders directed Israeli pilots to perform a "lofting" maneuver designed to extend how far their bombs would travel, said U.S. officials briefed on the operations.

With a burst of speed and altitude, the pilots fling their GPS-guided bombs from ejector racks in a sweeping arc into Syria. In each case, the targets would have to be stationary, the officials said.

The first strike, on Jan. 30, targeted a shipment of Russian-made SA-17 antiaircraft missiles, U.S. officials said.

In early May, the Israelis tracked a plane they believed was carrying advanced Fateh-110 rockets from Iran to the Damascus International Airport, according to the U.S. officials briefed on the operations. Israel struck starting on May 2, from Lebanese air space.

That same month, Israeli and U.S. intelligence agencies began to track the antiship systems, whose Yakhont missiles can target warships with precision from over the horizon.

On July 5, Israel targeted some of the Yakhonts at a Syrian base outside the coastal city of Latakia. Afterward, Israeli and U.S. spy satellites saw something unexpected. Ground forces destroyed military equipment at the bombing site to try to trick Israel into believing it had successfully taken out the launchers, officials briefed on the intelligence say.

A U.S. damage assessment concluded that Israel had taken out only part of its target, and that the Yakhont missiles and launchers appeared to have been moved out of the line of fire. On Oct. 30 Israel targeted them again, U.S. officials said.

Israeli officials have told U.S. counterparts that the strikes damaged some Yakhont components, while others are stuck in warehouses in Syria.

"We don't think they have all the components in Lebanon to have a complete system," said a senior U.S. defense official.

But U.S. officials said they don't know the fate of all of the systems, and that they are concerned Hezbollah will bring more components into Lebanon.

Officials say supply lines for Hezbollah and the Assad regime have become increasingly intertwined, making it harder to distinguish between shipments bound for the Lebanese group and the regime. Israeli Air Force officials have told their American counterparts that commanders have aborted several planned airstrikes because of concerns about causing unintended damage.

U.S. defense officials said they believe Hezbollah has tried to throw off Israel's high-tech hunt by switching off and on communications and power networks along the border.

"Hezbollah is pretty damn good," said a senior U.S. official. "And they are patient."

WSJ : Assa Abloy in Talks for More U.S. Acquisitions – CEO

Assa Abloy in Talks for More U.S. Acquisitions – CEO
Swedish Company Seeks to Take Advantage of Improved Construction Outlook

STOCKHOLM—The chief executive of Assa Abloy ASSA-B.SK +0.41% AB said it is in talks to purchase more American companies and fuel a shopping spree motivated by the assumption the U.S. construction market is beginning to roll.

In an interview at the company's headquarters, Johan Molin said "we are currently in talks with some companies" with revenue in the range of $100 million to $300 million. Last year, the company, which sells a wide range of mechanical and electromechanical locks as well as automatic and security doors, purchased a handful of U.S. security-oriented companies, including Ameristar Fence Products Inc. and North Carolina-based door maker Amarr.

Mr. Molin's U.S. focus is becoming more acute amid sluggish conditions in Europe and his belief that U.S. building activity will be robust this year. "You can already see that it's about to take off," Mr. Molin said of U.S. construction activity. "There are derricks everywhere and the activity at architectural firms is high."

The company is widely exposed to a European construction industry, which has yet to recover from the 2008 recession. The U.S. optimism follows a 22.7% jump in housing starts in November to the highest level in six years—a figure that stands in contrast to the outlook for some important European markets.

Assa Abloy, founded two decades ago, is one of several Nordic firms looking to the U.S. use a stockpile of cash to purchase smaller U.S. companies that have strong market positions in sectors dependent on building and industrial activity. Swedish ball-bearing maker SKF SKF-B.SK +0.53% AB and engineering company Atlas Copco ATCO-A.SK -0.23% AB are two others following the trend.

Assa Abloy's plan for additional acquisitions comes as the company looks to lift sales of its commercial and industrial door-making division significantly, from SEK8 billion ($1.23 billion) in the first nine months of 2013 to SEK20 billion by the end of next year. The company reported SEK47 billion in sales in 2012.

Mr. Molin took the helm in 2005 and has overseen more than 100 acquisitions since then. He wants the company to become the leading provider of automated doors in the U.S.

Mr. Molin said that Assa Abloy has in the past few years been able to buy up many companies to "a reasonable price" for cash. The U.S. market at the end of 2013 represented 35% of the company's total revenue compared with 29% at the end of the previous year.

"It has been an extremely advantageous situation for us," the chief executive said.

The plan does carry risks. In a recent note to investors, J.P. Morgan Cazenove said the pace of acquisitions will initially also dilute its margins. But Assa Abloy also continues to rapidly cut costs and reinvest the savings into presence and product development, "which is producing stronger organic growth than the market," the bank said.