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The Wall Street Journal - 17 October 2017

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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
TUESDAY, OCTOBER 17, 2017 ~ VOL. CCLXX NO. 91
* * * * *
DJIA 22956.96 À 85.24 0.4%
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STOXX 600 391.41 g 0.003%
10-YR. TREAS. g 8/32 , yield 2.309%
HHHH $4.00
WSJ.com
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GOLD $1,299.90 g $1.60
Business & Finance
T
he Nordstrom family
suspended efforts to
take the chain private after
struggling to raise enough
financing for a buyout. A1
WASHINGTON—The
U.S.
sought to stay on the sidelines
as an all-out battle broke out
between two of its closest
ground partners in the campaign against Islamic State and
raised concerns about a broader
civil conflict erupting in Iraq.
Silicon Valley leaders
plan to seek approval for a
new stock exchange focused
on long-term investing. B1
Financial shares lifted
U.S. stock indexes to new records. The Dow rose 85.24
points to 22956.96. B11
Netflix posted strong
subscriber growth and said
it plans to spend up to $8
billion on content in 2018. B2
Airbus plans to partner
with Bombardier, intensifying
competition with Boeing. B6
Edward Jones said client assets topped $1 trillion
as it recruits experienced
brokers from rivals. B10
Facebook acquired TBH,
an anonymous polling app
popular among teens. B6
The U.S. sought to remain neutral as Iraqi troops
took control of Kirkuk from
Kurdish fighters. A1
The clashes raised fears
of a wider conflict between
two U.S. allies in the fight
against Islamic State. A8
Trump and McConnell
offered a united front to push
their tax plan after months
of tension as the Senate
nears a critical vote. A1, A6
Spain’s premier gave Catalonia’s leader until Thursday to cease his independence bid or face the loss of
some regional powers. A7
The Supreme Court
agreed to decide if email providers have to comply with
search warrants for customer data stored abroad. A2
California officials urged
caution as firefighters battled blazes for an eighth day
and the death toll hit 41. A3
Philippine forces killed
one of the U.S.’s most-wanted
terrorists in their fight to retake a city from militants. A9
NATO kicked off its annual
nuclear exercise with drills
in Germany and Belgium. A7
Bergdahl pleaded guilty
to misbehavior and desertion for leaving his post. A2
Astronomers detected
for the first time the collision of two neutron stars. A3
Markets............. B11-12
Opinion.............. A15-17
Sports....................... A14
Technology............... B4
U.S. News......... A2-4,6
Weather................... A14
World News........ A7-9
>
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
By Ben Kesling,
Nancy A. Youssef
and Paul Sonne
made clear he would sign a bipartisan health care bill that
would diminish the political
fallout that could come from
his decision to cut off Affordable Care Act insurance subsidies—two moves that could
help Mr. McConnell.
“My relationship with this
man is outstanding,” Mr.
Please see TRUMP page A4
Iraqi Prime Minister Haider
al-Abadi ordered federal
troops to push into Kirkuk
province early Monday and occupy strategic locations that
Kurdish Peshmerga forces had
taken in a disputed area during
the three-year battle against
the Sunni militant group.
The clashes follow a referendum in which the Kurds,
who run their own semiautonomous region in northern Iraq,
voted overwhelmingly in favor
of independence, defying
Baghdad, regional powers and
the U.S, which warned it
would distract from the final
battles to defeat Islamic State.
Elite government forces
Please see KIRKUK page A8
Trump, Yellen to meet about
top Fed job.................................. A2
Yaroslav Trofimov: A U.S. ally
rolls the dice, and loses...... A8
President Donald Trump and Senate Majority Leader Mitch McConnell held a news conference at the White House after their lunch Monday.
Trump Stresses GOP Unity
‘We’re fighting for the
same thing,’ president
says of McConnell,
after months of tension
BY ELI STOKOLS
WASHINGTON—President
Donald Trump and Senate Majority Leader Mitch McConnell, whose relationship has
been tense for months, offered
a united front Monday to promote their plans to rewrite the
tax code as the Senate nears a
critical vote.
The White House had asked
for the meeting over a week
ago, according to a person familiar with the decision, and orchestrated a joint news conference that followed in the Rose
Garden where the two men took
turns praising each other.
The congenial appearance
stood in contrast to the presi-
Netflix Subscribers Still Stream In
Netflix exceeded its subscriber-growth estimates at home and
abroad, the company disclosed Monday. It said it expects to spend
even more on original programming next year to lure viewers. B2
World-Wide
CONTENTS
Banking & Finance B10
Business News....... B3,6
Commodities........... B8
Crossword.............. A12
Heard on Street.... B12
Life & Arts....... A11-13
CHIP SOMODEVILLA/GETTY IMAGES
P&G said it beat Peltz’s
Trian in a proxy fight by
only about 0.2% of shares
outstanding, setting the
stage for a recount. B1
Huawei is launching a
new flagship smartphone
as it seeks to challenge Apple’s iPhone X in China. B1
YEN 112.19
U.S. Seeks
To Stay
Neutral
In Iraq
Conflict
What’s
News
Colony Capital is in talks
to buy Weinstein Co.’s assets in the wake of sexualassault allegations against
Harvey Weinstein. B1
EURO $1.1798
Net additions to streaming subscribers at Netflix
International
Domestic
7 million
3Q 2017
s5.3 million
subscribers
6
5
4
3
2
1
0
2015
’16
Source: the company
’17
THE WALL STREET JOURNAL.
Xi Starting New Term
Less Keen on Markets
dent’s statements at a cabinet
meeting earlier on Monday,
where he decried how Congress had failed to pass key
parts of his agenda and made
a nod to threats from his former chief strategist, Steve
Bannon, to declare war on the
Republican establishment.
After the lunch meeting,
Mr. Trump eased away from
promoting primary challenges
to Republican senators, as Mr.
Bannon is threatening, and
Nordstrom Delays Buyout
As Investors Balk at Retail
BY SUZANNE KAPNER
AND SAM GOLDFARB
The Nordstrom family has
suspended efforts to take
Nordstrom Inc. private after
struggling to raise enough financing for the leveraged buyout, in the latest sign of how
much investors have soured on
the retail industry.
The founding family, including the co-presidents, Blake,
Erik and Peter Nordstrom, notified the special committee of
the board that it would resume its efforts to explore a
go-private deal after the holiday shopping season.
INSIDE
BEIJING—As a new president, Xi Jinping promised to
give markets more room in
China’s economy. He even
considered scrapping a hulking ministry supervising
state-owned companies.
Today, Mr. Xi has set aside
such notions. In today’s
China, state intervention attempts to engineer economic
outcomes, ranging from rawmaterials prices to the value
of stocks and the currency.
State-owned corporate giants
are bulking up, with private
capital funneled into them for
support. The agency Mr. Xi
toyed with dismantling is
back in the driver’s seat.
Going into his second term,
Mr. Xi finds relying on markets too risky and state capitalism a better model. When
China’s leadership talks of reform today it doesn’t mean
economic liberalization as it
did in, say, the era of Deng
Xiaoping. It means fine-tuning a government-led model.
The Communist Party congress that starts Wednesday
will hand the reins to Mr. Xi
for another five years. Having
purged many rivals, Mr. Xi is
expected to gain an even
freer hand to pursue state
control across society, from
schools to the economy.
Based on interviews with officials, government advisers,
economists and business executives, it is clear market
principles Beijing once saw as
tools to invigorate state behemoths and the capital marPlease see CHINA page A10
China’s government bond
yields keep rising................... B11
The deal’s unraveling shows
that even a chain like Nordstrom—which gets more than
a quarter of its sales online
and has a growing off-price
Nordstrom Rack business—is
struggling to attract investors,
while lending to highly indebted companies outside the
retail sector remains robust.
The retail industry is suffering
from a record number of bankruptcies and chains are on
track to close more stores in
2017 than during the recession
amid weak sales and profits.
Nordstrom, with its smaller
footprint and stores mainly loPlease see STORES page A6
Here’s the Coffee You Ordered!
Your Total Comes to $55
i
i
i
Elite cafes jack up prices with rare beans,
exotic formulas; ‘Esmeralda Geisha 601’
In China, giant state firms are back in style
BY LINGLING WEI
The department-store operator disclosed in June that the
family, which owns nearly onethird of the shares and runs
the business, was exploring
the possibility of going private. The family subsequently
teamed with the private-equity firm Leonard Green &
Partners in what could have
been a $10 billion deal. But the
transaction faltered in recent
weeks as the partners had
trouble raising enough debt at
reasonable rates, people familiar with the situation said.
Nordstrom declined to
make its executives available
for comment.
GOLD FORGED
BY CELESTIAL
COLLISION
U.S. NEWS, A3
BATMAN’S
SOFTER
SIDE
LIFE & ARTS, A11
BY CHARLES PASSY
NEW YORK—In this hypercaffeinated city, you don’t have
to venture far to find an affordable cup of coffee, be it from a
corner bodega or pushcart vendor.
Then there is Eleven Madison Park, the Michelin-starred
dining spot that
just began offering a $24 cup of
joe.
Maya Albert,
the restaurant’s
coffee director,
spends about 10
minutes preparing the beverage
tableside. She uses her Silverton “dripper,” a brewing apparatus that resembles something
out of a chemistry lab. She
carefully times each of the
three stages of the process, including the all-important
“bloom” period when the
ground beans first make contact with the hot water.
The coffee is a rare variety
called Wush Wush, sourced
from a small farm in Colombia.
Eleven Madison Park charges
$48 for 10 ounces of the coffee,
but two people can share the
offering and perhaps eke out a
tiny refill or two.
“It’s got this
creamy texture
that reminds me
of dough or yogurt,” Ms. Albert
said of the coffee. As for the
flavor: “It’s blueberry pie.”
Competition in the world of
wallet-busting coffee is heating
up. Many Americans have long
moved past the ho-hum cup—
first embracing the higher-end
brews offered by Starbucks and
Please see COFFEE page A10
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A2 | Tuesday, October 17, 2017
NY
* ****
THE WALL STREET JOURNAL.
U.S. NEWS
Top Court to Hear Microsoft Warrant Case
BY BRENT KENDALL
WASHINGTON—The U.S.
Supreme Court agreed to decide whether email providers
have to comply with search
warrants seeking customer
messages if the material is
stored outside the U.S., the
latest clash between technology companies and the government over access to private data.
The case, which centers on
a battle between the federal
government and Microsoft
Corp., is part of a broader tussle between tech firms and
law enforcement over consumers’ digital information. It also
comes as the high court is becoming more active in considering privacy rights and public
safety in the digital age.
The new case Monday adds
to a blockbuster docket in
which the justices already
were preparing to hear a separate case on whether authorities need search warrants for
data showing the location of
cellphone users.
In the email case, the government in 2013 applied for a
search warrant requiring Redmond, Wash.-based Microsoft
to turn over email information
for a customer who allegedly
was using the account to conduct criminal drug activity. A
magistrate judge issued the
warrant.
Microsoft handed over
some account-identification
information that was stored in
its facilities in the U.S., but it
declined to turn over actual
email messages, which it said
were stored at a data center in
Ireland. The company argued
that U.S. search warrants don’t
reach data stored outside domestic borders.
The case made its way to
the Second U.S. Circuit Court
of Appeals in New York, where
a three-judge panel dealt a
blow to the Justice Department by ruling for Microsoft
last year. The court held that
U.S. law doesn’t authorize
courts to enforce search war-
U.S. says refusal to
turn over customers’
emails on foreign
servers hurts probes.
rants against U.S.-based companies for emails that reside
on foreign computer servers.
The Supreme Court will review that ruling. The case
likely will be argued in early
2018, with a decision expected
by the end of June.
The U.S. appealed the case
to the high court, saying the
lower court decision has produced ripple effects, with
Google and other technology
companies putting up resistance similar to Microsoft’s.
“Under this opinion, hundreds if not thousands of investigations of crimes—ranging from terrorism, to child
pornography, to fraud—are being or will be hampered by the
government’s inability to obtain electronic evidence,” the
department said in a brief.
A group of 33 states filed a
separate brief supporting the
Justice Department, saying
the lower court decision also
was interfering with local and
state investigations.
Microsoft said that if
changes need to be made to
the law, those should come
from Congress, which could
balance the needs of law en-
forcement with the needs of
technology companies.
If the U.S. can seek this
overseas data, it can place
companies in a difficult spot
when trying to comply with
foreign privacy laws, Microsoft said in court papers. It
said that, given customers’
concerns about their privacy
rights, granting law-enforcement authorities the broad
power to obtain data stored
overseas “would hamstring
U.S. companies’ ability to compete in the multibillion-dollar
cloud-computing industry.”
On another front, a top Justice Department official last
week signaled the government
plans a more aggressive posture in seeking access to encrypted information from tech
companies. Deputy Attorney
General Rod Rosenstein said
negotiations with tech firms
haven’t worked.
CORRECTIONS AMPLIFICATIONS
Bergdahl Pleads
To Misbehavior
And Desertion
Max Scherzer of the Washington Nationals is a righthanded pitcher. A Sports article Saturday about starters
incorrectly identified him as
left-handed.
CBS Corp.’s pay-TV channel Showtime plans to move
ahead with the drama “Guantanamo,” as long as Weinstein
Co., which had been developing the series, is no longer involved. A Page One article on
Saturday incorrectly suggested
that the network was pulling
out of the show.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com or
by calling 888-410-2667.
SARA D. DAVIS/GETTY IMAGES
THE WALL STREET JOURNAL
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(Western Edition ISSN 0193-2241)
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constitute final acceptance of the advertiser’s order.
Trump, Yellen to Meet About Top Fed Job
Letters to the Editor:
Fax: 212-416-2891; email: wsj.ltrs@wsj.com
BY PETER NICHOLAS
AND KATE DAVIDSON
NEED ASSISTANCE WITH
YOUR SUBSCRIPTION?
WASHINGTON—President
Donald Trump plans to meet
Thursday with Federal Reserve
Chairwoman Janet Yellen to
discuss the possibility of nominating her for a second term
as central-bank chief, according to a person familiar with
the matter.
Ms. Yellen’s four-year term
as chairwoman expires in
early February.
By web: customercenter.wsj.com;
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U.S. Army Sgt. Bowe Bergdahl, who walked off his observation post in Afghanistan and
was captured by the Taliban,
pleaded guilty Monday to
charges of misbehavior before
the enemy and desertion, an
Army spokesman said.
Sgt. Bergdahl, 31 years old, left
his post in Afghanistan in 2009
and was quickly scooped up by
the Taliban. He remained in captivity until 2014, when he was
freed in a prisoner swap.
Eugene Fidell, a lawyer for Sgt.
Bergdahl, declined to comment.
Sgt. Bergdahl, pictured left on
Monday in Fort Bragg, N.C., could
face a maximum punishment of
life in prison for misbehavior before the enemy, a military crime
that prohibits endangering the
safety of a command, unit or
place. The desertion charge is
punishable by as many as five
years in prison.
Sgt. Bergdahl’s time in captivity could also factor in the
length of his sentence.
—Joe Palazzolo
She is one of several people
under consideration for the
Fed job, along with former Fed
governor Kevin Warsh, current
governor Jerome Powell, Stanford University economist
John Taylor and National Economic Council Director Gary
Cohn.
Mr. Trump met with Mr.
Taylor on Wednesday, and interviewed Messrs. Warsh and
Powell late last month.
Politico reported earlier
that Mr. Trump would meet
60 YEARS OF ADVENTURE
AND DISCOVERY
with Ms. Yellen this week to
discuss the matter.
Mr. Trump criticized Ms.
Yellen during the campaign,
but in a July interview with
The Wall Street Journal said
she was still in the running for
another term.
“I think she’s done a good
job,” Mr. Trump said. “I’d like
to see rates stay low. She’s
historically been a low-interest-rate person.”
Ms. Yellen has led the Fed’s
campaign to unwind the easy-
money policies that it pursued
after the financial crisis, including three rounds of bondbuying and an extended period
of near-zero interest rates
aimed at stimulating the economy.
She has defended the Fed
against criticism on Capitol
Hill, largely from Republicans,
that the central bank was too
slow to raise rates after the financial crisis and should be
subject to greater congressional oversight.
U.S. WATCH
GEORGIA
Harvard Professor
To Lead Morehouse
Morehouse College, one of
the nation’s premier historically
black schools of higher education, named a Harvard Business
School professor as its next
president.
David A. Thomas, an academic
for 31 years and a former dean at
Georgetown University, takes the
helm at a time when many of the
more than 100 historically black
schools are facing stiff headwinds.
Many are grappling with significant debt and declining enrollment as they compete for the
best and brightest black students.
Morehouse, in Atlanta, is all male
and enrolls about 2,200 undergraduates, roughly 500 fewer
than a decade ago. Morehouse
and some others now recruit
white, Asian and Latino students.
“Growing enrollment is high on
my list of priorities,” Dr. Thomas
said, adding that the school would
take a closer look at how its representatives speak not only to
prospective students but to their
parents. “We want to take a very
strategic look at where we recruit
and what our messaging is.”
Dr. Thomas is the first Morehouse president in 50 years who
didn’t graduate from the college.
The school’s interim president,
William J. Taggart, died in June.
Dr. Taggart had been appointed in
April after the college’s governing
board voted to remove President
John S. Wilson Jr. three months
before his contract was to expire.
—Douglas Belkin
TEXAS
Driver Pleads Guilty
In Smuggling Deaths
A 61-year-old truck driver accused in the deaths of 10 immigrants being smuggled in the
back of a tractor-trailer pleaded
guilty in federal court in Texas on
Monday.
James M. Bradley Jr. pleaded
guilty to conspiracy to transport
immigrants resulting in death, and
transporting immigrants resulting
in death.
Federal prosecutors in San Antonio accused Mr. Bradley of being the driver of a truck parked in
a Walmart parking lot in July with
dozens of migrants inside.
An attorney for Mr. Bradley
couldn’t immediately be reached.
Another man, Pedro Silva-Segura, also faces charges in connection with the case and is in
jail. Court records don’t list an attorney for Mr. Silva-Segura.
Smuggling attempts on
trucks have been on the rise in
South Texas in recent months.
The U.S. Border Patrol in the Rio
Grande Valley said that during
the 2017 budget year, which
ended in September, more than
600 would-be immigrants were
found being smuggled in big
rigs.
—Alicia A. Caldwell
Tuesday, October 17, 2017 | A3
U.S. NEWS
Neutron Stars Forge Gold
© Verdura. All rights reserved.
THE WALL STREET JOURNAL.
Teams detect celestial
collision for the first
time, say it is a source
of heavy elements
Astronomers scanning ripples in space-time have detected the collision of two
neutron stars for the first
time—and, by analyzing the
flare from the cataclysmic
crush, discovered such stellar
smashups are the source of
gold, platinum, uranium and
other heavy elements found
throughout the universe.
The discovery was announced Monday at a news
conference in Washington. The
findings were the work of
thousands of researchers at
three sprawling gravitational
wave detectors in the U.S. and
Italy, which first picked up signals from the merging stars,
and of astronomers at more
than 70 observatories around
the world who scrambled to
study its exotic effects before
the fierce afterglow faded.
“Gold is forged in the nuclear furnace of neutron star
collisions,” said astrophysicist
Duncan Brown, who studies
gravitational waves at Syracuse University and who was
involved in the effort.
The teams said it marks the
first time any cosmic event
has been seen both with gravitational waves, which are produced when massive objects
such as black holes stretch and
squeeze the fabric of space
and time, and with the full
electromagnetic spectrum—
from gamma rays, X-rays and
radio waves to infrared, ultraviolet and visible light.
“This is a new kind of as-
ILLUSTRATION BY ROBIN DIENEL/CARNEGIE INSTITUTION FOR SCIENCE
BY ROBERT LEE HOTZ
The collision of two neutron stars, illustrated above, touched off a frenzy among researchers on Aug. 17.
tronomy,” said physicist David
Reitze at the California Institute of Technology, who is executive director of the $1.1 billion
U.S.-based
Laser
Interferometer Gravitationalwave Observatory, or LIGO,
which caught the first signal
from the merging stars.
Created in the collapse of a
supernova, neutron stars are
the smallest, densest stars in
the known cosmos—so tiny
that the two in the new studies were each about the size of
Manhattan, so heavy that each
contained more than the mass
of the sun, and so compacted
that a spoonful of their exotic
essence likely would weigh
more than a billion tons, the
researchers said.
“When these two neutron
stars collide, all hell breaks
loose,” Dr. Reitze said.
Among astrophysicists, astral engineers and astronomers, it touched off a frenzy of
discovery. The detector alarm
first rang at the LIGO installation in Hanford, Wash., at 8:41
a.m. EDT Aug. 17. Almost immediately, the researchers
confirmed the signal at LIGO’s
second installation 1,800 miles
away at Livingston, La.
Less than two seconds after
the first gravitational waves
from the merging neutron
stars reached Earth, NASA’s
orbiting Fermi Gamma Ray
Observatory picked up a burst
of high-energy light like a
flash bulb in the southern sky.
Convinced that they were
witnessing the same neutron
star collision, the LIGO astrophysicists and Fermi astronomers still weren’t sure where
exactly the merging stars were
located. Scientists at the
newly opened Virgo gravitational wave detector in Pisa,
Italy, operated by the European Gravitational Wave Observatory, helped narrow the
search for the source to a region of the Southern Hemisphere sky.
Within hours, seven astronomers at the Swope Telescope
in Chile—a vintage optical
telescope at the Carnegie Observatories’ Las Campanas Observatory—picked out a bright
new blue orb in a distant galaxy cataloged as NGC 4993.
As astronomers watched
this radioactive plume of neutrons decay into other substances, they saw evidence of
the creation of “r-process” elements, which account for
about half of all the heavy elements in the universe.
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California Fires’ Death Toll Rises to 41
BY SARA RANDAZZO
AND ALEJANDRO LAZO
SANTA ROSA, Calif.—Officials on Monday urged thousands of firefighters on the
front lines in Northern California to use caution, as fatigue
hit workers on the eighth
straight day of battling blazes.
The warning came amid
news that a private contractor
driving a water tanker to the
fire zone died in a vehicle rollover in Napa County, bringing
the death toll related to the
blazes to 41.
“We’re nearing 4,300 firefighters in this camp, which is
outrageous,” Bret Gouvea, a
Cal Fire incident commander,
told a crowd of firefighters
during a dawn briefing in
Santa Rosa. “Lots of bad
things can happen when we
get to those numbers.”
Statewide, 11,000 firefighters continue to fight 14 large
wildfires. The fires, which are
slowly coming under control,
have knocked out 5,700 structures and scorched 213,000
acres, according to Cal Fire.
Fire officials speaking in
Sonoma County on Monday afternoon said they continued to
make progress on all of the
Water-tanker driver
dies in a crash, but
blazes are slowly
coming under control.
fires in their jurisdiction.
“We are still optimistic, cautiously optimistic…our containment percentages are continuing to go up,” Mr. Gouvea said.
Residents are beginning to
repopulate areas no longer under threat, but more than
40,000 people remain evacuated. Officials said that many
evacuation orders are under
consideration to be lifted.
Fire officials are allowing
some evacuated residents back
in their neighborhoods to see
their homes, and retrieve belongings out of those houses
that are still standing.
Sonoma County Sheriff Rob
Giordano said that it could be
weeks for some people whose
homes burned down to get
back into the areas. Teams of
targeted search and rescue operations are continuing while
the National Guard is doing
broader sweeps, he said.
Mr. Giordano said 88 people
remain missing in the county.
He said he hopes some of the
people missing are simply out
of communication with their
loved ones, but acknowledged
that some might have perished
in the fire.
Hot temperatures on Mon-
day and low humidity continued to challenge the fire fight,
but winds have subsided.
The deadly Redwood Valley
fire in Mendocino County is
now 50% contained. Large
fires in Sonoma and Napa
counties are between 40% and
70% contained.
But a newer fire in
Sonoma’s Oakmont area has
spread over 875 acres and remains a challenge, Santa Rosa
Fire Chief Tony Gossner told
the firefighters at a briefing.
He said they needed to focus on keeping the Oakmont
fire away from an area with
2,000 homes, where they continue to clear out residents.
“Make this a hard hit,” he
said, while reminding crews—
which have come from
throughout California and out
of state to assist the fire
fight—to watch out for each
other. “Be safe, be appropriate,
and we’ll get this thing.”
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A4 | Tuesday, October 17, 2017
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THE WALL STREET JOURNAL.
U.S. NEWS
CAPITAL JOURNAL
By Gerald F. Seib
In the center of the African nation of Namibia stands
the expansive Independence
Memorial Museum, the focal
point of which is a giant
statue of a heroic-looking
Sam Nujoma, revolutionary
leader and first president of
an independent Namibia.
Unlikely as
it may seem,
that scene is
highly relevant to the
world’s most explosive issue:
the debate over North Korea’s dangerous nuclear and
missile programs.
In fact, the Namibia tale
tells you two important
things. First, a lot of disparate countries have to answer for providing North Korea economic and military
help. Second, there remains
plenty of room to exert eco-
nomic pressure to truly cut
off North Korea from the
outside world and the international economy.
Both lessons are crucial
now, when President Donald
Trump sometimes sounds to
be veering toward a military
option to deal with North
Korea. It’s easy to conclude
economic pressure and diplomatic isolation aren’t working in taming the nation’s
quest. In fact, despite the
perception North Korea has
long been economically isolated, the international community has failed to bring
the full force of economic
sanctions to bear on it.
T
hanks in significant
measure to the Trump
administration, the
process of turning that
around may only have just
begun, with a new set of
United Nations Security
Council and American economic sanctions that seem to
be squeezing North Korea.
More important, there now
appears to be a much more
vigorous effort to actually
enforce sanctions, which
needs time to work.
A long and dense U.N. report this year examined how
North Korea has evaded
SIGRID KOLBE/GETTY IMAGES
Belated Squeeze on North Korea Has Begun
The North Korea-built statue honoring Sam Nujoma, left, in front
of the Independence Memorial Museum in Windhoek, Namibia.
sanctions—and how a range
of countries have helped it.
North Korea, the report
found, “is flouting sanctions
through trade in prohibited
goods, with evasion techniques that are increasing in
scale, scope and sophistication.” Other countries’ efforts to enforce those sanctions were “insufficient and
highly inconsistent.”
Here is where that majestic Namibian museum and
accompanying statue come
in. The report found that a
North Korean firm called
Mansudae Overseas Project
Group of Cos. had found a lucrative business exporting
one of the few world-class
products the country produces: monuments and grandiloquent statues of the kind
produced to glorify North
Korean leader Kim Jong Un
and his father and grandfather. It contracted to build
the museum and statue in
Namibia, one of at least 15
African countries that have
purchased such monuments.
Worse, the U.N. report
claims, Mansudae functions
as a front company masking
prohibited North Korean mil-
itary exports, an even more
important source of hard
currency for Pyongyang. The
company provided North Korean workers to construct a
munitions factory and military bases in Namibia, the
report says, and withdrew
dollars from a Namibian
bank account to send home
with those workers.
Mansudae, the report concludes, evaded U.N. sanctions
“by providing services and
assistance related to the
manufacture and maintenance of arms and related
materiel.” To stop this process, the Security Council
last year banned procurement of statues from North
Korea, and Namibia pledged
to the U.N. that it would end
Mansudae’s activity.
The report cites a long list
of similar examples showing
how North Korea has masked
its international economic
activity. Moreover, it also
shows how this sanctions
evasion sometimes directly
helps it acquire material for
its military programs.
For example, it says that
debris found after a multistage North Korean missile
launch included ball bearings, camera equipment and
pressure transmitters from
foreign providers. The camera equipment appears to
have come from a Chinese
manufacturer. The pressure
transmitters appeared to
have been made by a U.K.
company but arrived in
North Korea after passing
through several international
intermediaries. In an earlier
case, U.N. investigators found
the same components were
sold by a Chinese firm.
S
imilarly, the report says
trucks seen at a North
Korean parade carrying
missiles “strongly resemble a
series of Russian-manufactured trucks.” A Russian
company, the report says,
has been operating a truck
assembly line in North Korea.
International efforts to
crack down on North Korea
have been something of a
sieve. China, Russia, Pakistan
and others have helped it develop nuclear and missile
programs. Other nations
have looked the other way as
it sucked in hard currency.
Mr. Trump deserves credit
for creating the pressure that
is starting to cut off such activities. The question is
whether he will give that
pressure a chance to make a
difference.
Voters in Maine to Decide
On a Key Plank of the ACA
Cara Small, a nurse at Maine Medical Center in Portland, last month.
enjoyed growing support this
year after Republicans in
Washington made runs at repealing the ACA. Even some
Republican lawmakers, who
had derided the Medicaid expansion, hesitated to pare it
back. One of the program’s
strongest GOP Senate defenders was Maine’s Susan Collins.
“As the idea of cutting Medicaid significantly came up, the
threat of taking it away made
people hold it a little bit
closer,” said Bianca DiJulio, as-
sociate director of public opinion and survey research at the
Kaiser foundation.
The ACA tried to encourage
states to expand Medicaid by
offering federal funding up to
the higher income level, but
several Republican-led states
chose not to expand the program. Maine’s ballot question—pushed by left-leaning
groups, health advocates, citizens and others—would extend
Medicaid to adults under age
65 with incomes at or below
TRUMP
Continued from Page One
Trump said with the Kentucky
senator standing beside him at
a news conference at the
White House. “We’re fighting
for lower taxes, big tax cuts—
the biggest tax cuts in the history of our nation. We’re
fighting for tax reform as part
of that.”
“We have the same
agenda,” Mr. McConnell said.
“We’ve been friends and acquaintances for a long time.
We talk frequently. We don’t
give you a readout every time
we have a conversation, but
frequently we talk on the
weekends about the issues
that are before us.”
The meeting marked a rare
one-on-one session between
the president and the Senate
majority leader in which both
men could speak frankly and
discuss a crowded legislative
agenda. Mr. McConnell hadn’t
met with the president since
early September when he and
House Speaker Paul Ryan were
caught off guard by Mr. Trump
agreeing to a debt-ceiling increase proposed by Democrats.
Tensions had been churning between Mr. Trump and
the top GOP senator since August when Mr. McConnell told
a Kentucky audience that the
president had “excessive expectations”
about
how
quickly the legislative process
works. Mr. Trump also has
blamed Mr. McConnell for the
failure in the Senate of the
Republican effort to repeal
138% of the federal poverty
level, which in 2017 means
$16,643 for a single person or
$22,412 for a family of two.
Backers of the initiative,
who began collecting signatures for the measure last
year, believe the GOP efforts in
Washington to dismantle parts
of the law could help rally support for Medicaid expansion.
Other proponents agree.
“I’m extremely optimistic,”
said Republican state Sen.
Thomas Saviello, a supporter
the 2010 health law known as
Obamacare.
With Republicans anxious
to notch a legislative win before 2018 and the midterm
election cycle, Messrs. McConnell and Trump’s display of comity could mark a turn toward
pragmatic collaboration.
The joint appearance came
at the start of a week that will
see the Senate vote on a budget resolution, which must
pass to pave the way for Republicans to take up tax legislation.
Under a special process tied
to the budget, Mr. McConnell
normally can’t afford to lose
more than two GOP votes to
pass it without Democratic
support. Yet, friction in the
chamber has been building after the president’s recent
Twitter feud with Sen. Bob
Corker (R., Tenn.). Mr. Trump
has sparred with Sen. John
McCain (R., Ariz.), whose vote
against the GOP’s effort to repeal the ACA stung the White
House earlier this summer.
With Sen. Thad Cochran (R.,
Miss.) ailing and unable to attend Senate votes this week, Mr.
McConnell can afford to lose
only one more Republican vote
on the measure, which requires
at least 50 votes, with Vice
President Mike Pence casting a
tiebreaking vote. No Democrats
are expected to support it.
Mr. McConnell made some
other ground with the president during their session as Mr.
Trump signaled that he is ready
to sign bipartisan health-care
legislation—a move that may
diminish the political fallout
from his decision to cut off in-
of the ballot measure, which
requires the state to seek the
expansion and which he said
would help the working poor.
Mr. LePage, the governor,
has vetoed five attempts by
the state’s legislature to expand Medicaid. In a public
message last week, he said
voters should be aware of the
“disastrous effects Medicaid
expansion will have on Maine.”
Advocates estimate 70,000
Mainers would gain coverage if
voters pass the measure. The
expansion would cost Maine
$54 million a year once fully
implemented and would bring
in $525 million annually from
the federal government, according to the state’s Office of
Fiscal and Program Review.
Groups representing hospitals and other health providers
have backed the measure, as
has the Maine Small Business
Coalition. Maine’s chapter of
the National Federation of Independent Business is opposed.
Tensions had been
churning between Mr.
Trump and the GOP
leader since August.
surer subsidies and earlier on
Monday, he predicted Congress would reach a shortterm bipartisan deal to keep
them funded.
“We’re
meeting—Democrats, Republicans are meeting
right now, and right now
they’re working on something
very special,” Mr. Trump said.
It’s unclear if the House will
support the bill since many
House Republicans view the
subsidies as a bailout for insurers.
The president also eased
away from encouraging primary challenges to members
of Mr. McConnell’s GOP majority. Mr. Trump said he would
seek to dissuade Mr. Bannon
from backing primary challengers to Republican incumbents whom Mr. McConnell
needs to pass party-line legislation. “I’m going to see if we
can talk him out of that,” he
said.
Hours earlier, Mr. Trump
blamed Mr. McConnell and Republicans in Congress for the
stalled legislative agenda and
expressed support for Mr.
Bannon, who on Saturday told
a group of conservative voters
that they are “in a season of
war with the GOP establishment.”
“We’re not getting the job
done,” the president said to
reporters at the outset of a
cabinet meeting. “And I’m not
going to blame myself, I’m going to be honest—they’re not
getting the job done. I can understand where Steve Bannon
is coming from.”
—Kristina Peterson
contributed to this article.
MANDEL NGAN/AGENCE FRANCE-PRESSE/GETTY IMAGES
As the Trump administration takes steps to weaken
provisions of the Affordable
Care Act, voters in Maine are
being asked whether the state
should embrace a central plank
of the 2010 law.
The November statewide
ballot measure proposes the
state accept enhanced federal
funding available under the
health law to extend Medicaid
health benefits to low-income
adults, over the strong opposition of the state’s Republican
governor, Paul LePage. Mr. LePage argues the expansion
would deplete state coffers.
Advocates elsewhere are
seeking to put the question to
voters. Supporters of expanding Medicaid in Utah filed a
petition last week to place the
issue on the 2018 ballot. Several other states including
Idaho, Tennessee and West
Virginia put plans to expand
their Medicaid programs on
hold as Congress debated a repeal of the law, according to a
Kaiser Family Foundation survey soon to be published.
Medicaid expansion, which
has extended health coverage
to 14 million people who were
uninsured before the ACA, has
PATRICK OUELLETTE/PORTLAND PRESS HERALD/GETTY IMAGES
BY JENNIFER LEVITZ
AND MICHELLE HACKMAN
surance subsidies.
A bipartisan health-care effort, spearheaded by Sens. Lamar Alexander of Tennessee
and Patty Murray of Washington, would authorize funding
for the ACA subsidies in exchange for giving states more
flexibility under the law.
Mr. Alexander told reporters Monday night that Mr.
Trump had called him on Saturday and encouraged him to
strike a deal with Ms. Murray.
“He said, ‘I don’t want people to suffer’—those are his
words,” Mr. Alexander said.
Mr. Trump has previously
been critical of funding the in-
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THE WALL STREET JOURNAL.
Tuesday, October 17, 2017 | A5
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A6 | Tuesday, October 17, 2017
* *
THE WALL STREET JOURNAL.
U.S. NEWS
Mortgage Break Faces Irrelevancy
BY LAURA KUSISTO
Homeowners' Finances
The Republican tax-overhaul plan has the potential to
diminish the value of a break
that lawmakers once considered untouchable: the mortgage interest deduction.
The break allows homeowners to deduct from federal
taxes money spent on interest
tied to mortgage loans of as
much as $1 million.
So far the deduction is one
of the few being kept alive in
the framework put forward by
President Donald Trump and
fellow GOP leaders in Congress this month.
While the mortgage deduction is kept in place, it might
face irrelevance. That is because the tax plan also would
almost double the standard
deduction for individuals and
couples, meaning only the
highest earners would continue to itemize their deductions, and only a few of them
would take the mortgage
break. For most taxpayers, the
standard deduction is likely to
be the better option.
Currently, about 30% of
U.S. homes are valuable
enough to make it worthwhile
to take the mortgage interest
deduction, along with a deduction for state and local
property taxes, according to
an analysis by home search
website Zillow. Under the
proposed changes, the share
would drop to 5%, according
to Zillow.
The deduction is “more at
risk than at any point in the
last 30 years,” said Isaac Boltansky, director of policy research at Compass Point Research & Trading, an invest-
The percentage of homes that are valuable enough to make it
worthwhile to take the mortgage interest deduction is expected to
decrease significantly under the GOP proposed tax plan.
Share of homes worth enough to get
mortgage interest deduction by city
Under tax proposal
Pct. point
difference
Currently
-74.0
-67.9
-66.2
-65.4
-65.0
-64.3
-61.0
-58.3
-56.9
-53.1
San Diego
Sacramento, Calif.
Los Angeles
Boston
Portland, Ore.
Denver
Seattle
New York
Washington
Riverside, Calif.
0%
20
40
60
80
100
Note: These figures also take into account the deduction for state and local taxes.
Source: Zillow
THE WALL STREET JOURNAL.
ment bank in Washington. The
GOP proposal makes it effectively worthless, he said.
Existing homeowners would
still be able to choose whether
to take the standard deduction
or itemize based on what
would be the most financially
beneficial for them. But they
could be affected by broader
shifts in the market.
The weakening of the deduction could lessen the incentive for renters to buy
homes and would likely encourage people to spend less
on a home purchase, economists said.
A May study by accounting
firm PricewaterhouseCoopers
conducted for the National Association of Realtors said
home prices nationally would
likely drop 10% in the short
term if the standard deduction
were doubled and the state
and local tax deduction eliminated. Many economists said
they expect prices to recover
over time.
Under current law, a typical
homeowner would need to
purchase a home worth at
least $305,000 to make taking
the break worthwhile, according to Zillow, while under the
proposed law that would shoot
up to $801,000. The median
home value in the U.S. is just
over $200,000.
The most expensive markets in the country, mainly on
the coasts, would see the largest drop in homeowners opting to take the mortgage
break. The share of Boston
homeowners likely to take the
break would drop to 14% from
79%, according to Zillow.
Other less pricey markets
Housing Groups
Spar Over Tax Plan
The debate over weakening
the tax incentive for homeownership has created a rift
between two powerful trade
groups representing real-estate
brokers and home builders.
The National Association of
Home Builders and the National Association of Realtors
for decades have been stalwart
proponents of the mortgage
interest deduction, a cherished
break that allows homeowners
to deduct the interest paid on
their mortgage.
But this month the NAHB
said it is “open to the idea of
broader options regarding
housing tax incentives,” the
first time in at least three decades it has expressed anything less than full-throated
support for the break.
Jerry Howard, chief executive of the NAHB, said the
group has received assurances
that Congress and the White
House “are willing to look at
creative ideas around a homeownership tax incentive that
would offset the erosion produced by the increase in the
standard deduction,” such as a
homeowners’ tax credit.
Jamie Gregory, deputy chief
lobbyist at the National Association of Realtors, said the
group has been careful not to
overreact to the home builders’
shift in position. “They’re not
walking away from homeownership,” he said. But he
added that proposals he has
seen so far for a homeowner
credit would be less valuable
for homeowners than the
mortgage deduction.
“We want to make sure
that we first do no harm. We
don’t want homeownership to
lose ground,” Mr. Gregory
said.
Housing experts said the
split between the two groups
on what has long been considered the central issue for the
housing industry is unprecedented.
—Laura Kusisto
could see relatively few people
using the mortgage break. In
Philadelphia, nearly 30% of
homeowners are incentivized
to the mortgage interest deduction, but that would drop
to 1.9% after the proposed
changes. In Houston, where
19% of buyers likely now take
the deduction, about 2% would
if the rules change.
“You’re simply subsidizing
really expensive housing markets where people probably
aren’t
buying
first-time
homes,” said Svenja Gudell,
chief economist at Zillow.
Many of those pricey markets also would be hit by another part of the plan, which
would eliminate deductions
for state and local taxes. The
break mainly affects homeowners in high-tax states, who
typically pay school and property taxes. Within hours of announcing the plan, Republicans received fierce pushback
from Republicans in New York
and New Jersey.
—Richard Rubin
contributed to this article.
Task Force Seeks to Boost Apprenticeships
BY ERIC MORATH
Trump Blames Cuba
For Sonic Attacks
President Donald Trump said
he believes Cuba “is responsible”
for the mysterious ailments that
have left at least 22 U.S. government employees and family
members in Cuba with hearing
loss, cognitive problems and
other symptoms.
But it was unclear if he
meant to lay formal blame on
Havana for what the U.S. has
termed health attacks.
Washington’s position until
now has been that the U.S.
holds Cuba responsible for protecting the safety of U.S. diplomats and to stop the spread of
the ailments, but has stopped
short of blaming Cuba for making the employees ill.
“I think Cuba knew about it,”
Mr. Trump said at an impromptu
news conference Monday at the
White House. “I do believe Cuba
is responsible. I do believe that,
and it’s a very unusual attack, as
you know, but I do believe Cuba
is responsible.”
Officials said later Monday
that the U.S. still hasn’t yet determined the cause of the health
attacks, which began in November, or who is responsible for
them. Cuba has denied culpability in the illnesses, saying it has
worked to find out what has
sickened the U.S. employees.
—Felicia Schwartz
HOMELAND SECURITY
Latest Travel Ban
Gets Court Hearing
A federal judge in Maryland
probed whether President Donald Trump’s latest travel ban
was on firmer legal footing than
two previous versions that ran
into trouble in court.
U.S. District Judge Theodore
Chuang held a 90-minute hearing Monday in three combined
cases, considering requests by
legal challengers to block the
new ban, which is set to go into
full effect on Wednesday.
As with past cases on Mr.
Trump’s earlier bans, civil-rights
groups and immigrant-rights advocates said the president’s new
ban is a product of religious animus that disfavors Muslims in
an unconstitutional way. They
also say the ban goes beyond
the scope of the president’s authority under federal immigration law.
The government rejected
both claims, with the Trump administration saying the restrictions protect the country from
potential terrorist threats.
—Brent Kendall
President’s Remarks
Draw Strong Rebuke
industry-led programs than it
does with registered apprentice programs, which have existed for decades.
Unions traditionally have
supported Democrats, but the
Labor Department has sought
to reach out to these groups
on workforce training. Nearly
half the apprentices in the U.S.
work in the construction sector, and most of them are
trained by trade unions.
Speaking for the first time
about the recent death of U.S.
soldiers in Niger, President Donald Trump said Monday that his
predecessors hadn’t called relatives of U.S. service members
killed in action overseas.
The remark brought swift denouncements from top aides of
former President Barack Obama.
“If you look at President
Obama and other presidents,
most of them didn’t make calls,”
Mr. Trump said.
Ben Rhodes, a former deputy
national security adviser to Mr.
Obama, tweeted: “This is an outrageous and disrespectful lie
even by Trump standards.”
—Gordon Lubold
Us Inc., which was felled by $5
billion in debt from a 2005 leveraged buyout, served as a reminder to debt investors of the
vulnerability of retailers.
Conditions for retailers have
worsened in recent weeks, and
the size and timing of the Nordstrom deal made it unattractive
for lenders. Bonds issued at par
by PetSmart Inc. in May recently traded at 80 cents on the
dollar and have fallen this
month as low as 78.625 cents,
according to MarketAxess.
As of early October, the
Nordstrom family was scrambling to save the deal, possibly
by adding more equity, though
it was unclear where that equity would come from, the
people said. One problem: additional equity would dilute
the family’s stake, which
stands at roughly 31%.
If Nordstrom has a good
holiday season, it could find it
easier to raise debt, but the
price of its equity could also
go up, changing the calculus
for potential partners. A bad
season could put a deal even
more out of reach.
Analysts are expecting department stores to report another round of disappointing
quarterly earnings in November given the unusually warm
fall weather, which would be a
gloomy harbinger for the important end-of-year selling
season.
Nordstrom shares declined
5.3% Monday to $40.40, helping to drag down the shares of
other
department-store
chains, including Macy’s, Penney and Dillard’s Inc.
Since the Toys “R” Us bankruptcy filing, bankers have
been wary about adding debt
to retailers—as siphoning cash
flow to interest payments
means the companies would
have less money to spend on
improving their businesses at
a time when investing in new
technologies and store upgrades is seen as a crucial way
to stay competitive.
—Soma Biswas
contributed to this article.
The Labor Department says 90% of apprentices are offered jobs. Above, two apprentices at a Stihl chain-saw plant in Virginia.
leges outnumber apprentices
in the U.S. 26 to 1.
Apprenticeships have struggled to take hold in the U.S. in
part because the education
system is geared more toward
college preparation, than, for
example, in Germany, where
teens are more frequently
steered toward a vocation.
And American students and
families are often reluctant to
pursue careers in fields such
as plumbing or manufacturing,
even if those jobs pay good
wages.
Task force members include
corporate executives—Dow
Chemical Co. Chief Executive
Andrew Liveris, Northrop
Grumman Chief Executive
Wesley Bush and ManpowerGroup
Director
Cari
Dominguez—as well as leaders
of several Washington trade
groups that represent business
interests. Three labor leaders
are also members.
The White House has directed the Labor Department
to allow companies, trade associations and unions to develop their own apprenticeship-program guidelines. This
task force would help create
guidance for that. In June, administration officials said the
government would generally
take a lighter touch with such
BEN NELMS/BLOOMBERG NEWS
STORES
Continued from Page One
cated in high-end malls, is considered a bright spot among department stores.
The company’s investmentgrade debt rating is higher
than that of Macy’s Inc., Kohl’s
Corp., J.C. Penney Co. and numerous other retailers tracked
by Fitch Ratings.
But it isn’t immune to the
changes reshaping the industry.
Net profit for its most recent
fiscal year fell 35% to $354 million on asset-impairment
charges and higher technology
and fulfillment costs. Sales
rose nearly 3% to $14.5 billion.
Bankers were concerned
they wouldn’t be able to sell
the buyout debt before the
holiday shopping season and
would have to hold it until
next year, exposing them to
the risk that Nordstrom’s business, or the broader market,
would deteriorate in the in-
WHITE HOUSE
MILITARY
JOHN MINCHILLO/ASSOCIATED PRESS
The Labor Department is
enlisting the help of corporate
executives, labor unions and
governors to develop its policy
of expanding the use of apprenticeships in the U.S.
The department announced
23 members of the president’s
apprenticeship task force on
Monday, charging them with
crafting a plan to expand use
of the training strategy that is
popular in Europe but littleused is most U.S. industries.
President Donald Trump
signed an executive order in
June making apprenticeships a
cornerstone of his strategy to
address a shortage of skilled
workers.
“Expanding apprenticeships
will help Americans learn the
skills they need to fill jobs
that are open right now and in
the future,” Labor Secretary
Alexander Acosta said. Members of the task force “will
provide varied perspectives
that will help guide the administration’s strategy on growing
apprenticeship programs nationwide.”
Employers that use apprentices like the programs because they train future workers for specific, in-demand
jobs. Apprentices earn a paycheck while they train, often
eliminating the need to take
on debt to fund their education. Upon completion of a
training program, 90% of apprentices are offered jobs and
earn a starting salary of about
$60,000 a year, according to
the Labor Department. Yet undergraduate students at col-
WASHINGTON
WIRE
Nordstrom, with stores mainly located in high-end malls, is considered a bright spot among retailers.
terim, the people said.
“There is nothing that would
make anyone put leverage on a
specialty apparel retailer or department store right now,” said
Paul Lejuez, a Citi analyst.
“These businesses have been
under a lot of pressure—and
that’s with strong consumer
spending.”
The debt markets have been
far from closed to retail companies in recent months: Retailers
issued $5.3 billion of junk-rated
bonds through the first three
quarters of 2017, up from $4.1
billion over the same period last
year, according to LCD, a unit of
S&P Global Market Intelligence.
But the chapter 11 bankruptcy
filing in September of Toys “R”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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Tuesday, October 17, 2017 | A7
THE WALL STREET JOURNAL.
WORLD NEWS
NATO
Begins
Nuclear
Exercise
Catalan Leader Given Ultimatum
Madrid vows to strip
region of powers if
secessionist bid isn’t
rescinded by Thursday
BY JULIAN E. BARNES
MADRID—Spanish Prime
Minister Mariano Rajoy gave
the leader of Catalonia until
Thursday to cease his bid for
independence or face the loss
of some regional powers at
the hands of the central government.
Mr. Rajoy, in a letter sent to
Carles Puigdemont on Monday,
said the Catalan leader hadn’t
clarified whether he declared
the region independent from
Spain last week, as the central
government had demanded in
an earlier injunction. The Catalan leader now has until
Thursday morning to withdraw his secessionist drive. If
he doesn’t, Mr. Rajoy said he
would invoke an article of the
Spanish constitution that
would allow the central government to strip the wealthy
region of some of its powers.
“Never in their history have
the citizens of Catalonia enjoyed greater liberty and political and financial autonomy
than in this democratic period.
The only conflict that exists at
this moment in Catalonia is a
conflict of lawfulness,” Mr. Rajoy said in the three-page letter addressed to Mr. Puigdemont. The prime minister
called on the Catalan leader to
respect the rule of law and
drop his bid to split with
Spain.
Last week, Mr. Rajoy gave
Mr. Puigdemont until Monday
at 10 a.m. local time to set the
record straight on whether he
declared the region independent. Anything but an unequivocal statement denying
that was his intent would be
taken as a proclamation of
Catalonia’s secession from
Spain, according to an injunction Madrid sent to the Catalan leader on Wednesday.
BRUSSELS—NATO kicked
off its annual nuclear exercise
on Monday with drills in Germany and Belgium, as the alliance seeks to showcase its nuclear deterrent but avoid
accusations of saber rattling.
The exercise, called “Steadfast Noon,” is taking place at
two air bases where the U.S.
stores nuclear weapons in Europe: Kleine Brogel in Belgium
and Büchel in Germany.
In the face of North Korean
tests and Russian drills, the
North Atlantic Treaty Organization has been highlighting
its nuclear defenses, with a
visit by alliance ambassadors
to a U.K. ballistic-missilearmed submarine base in September.
NATO has also taken a
strong stance against the Nuclear Weapons Ban Treaty,
saying it will remain a nuclear-armed alliance as long as
these weapons exist elsewhere.
NATO’s nuclear drills remain sensitive; the alliance
omits Steadfast Noon from
many lists of its exercises.
NATO officials won’t publicly
confirm the nature of the exercise, but privately acknowledge it is the main nuclear-deterrent drill.
An official said nuclear exercises remained a “delicate
balancing act among allies,”
with some countries uncomfortable with public discussions and others wanting acknowledgment
of
the
deterrent’s importance.
NATO officials said the exercise involved aircraft from
across the alliance. In addition
to Belgium and Germany, Poland has participated in Steadfast Noon since Russia’s annexation of Crimea in 2014.
MANU FERNANDEZ/ASSOCIATED PRESS
BY JEANNETTE NEUMANN
Catalan regional President Carles Puigdemont, right, hasn’t clarified whether he declared regional independence from Spain last week.
“The priority of my government is to intensively pursue
the path of dialogue,” Mr.
Puigdemont said in the letter
addressed to Mr. Rajoy. “We
want to talk, as they do in
consolidated
democracies,
about the problem posed by
the majority of Catalan people,
who want to embark on a path
as an independent country in
the European framework.”
Mr. Puigdemont set a window of two months for dialogue with the central government, despite Mr. Rajoy’s
repeated refusal to negotiate
the secession of one of Spain’s
17 autonomous regions.
Mr. Rajoy said the Catalan
leader’s request for dialogue
was deceptive. “Your calls for
dialogue in the name of Catalonia aren’t credible when you
MIGUEL GUTIERREZ/EPA/SHUTTERSTOCK
In a response sent to Mr.
Rajoy earlier Monday, Mr.
Puigdemont
didn’t
say
whether he declared the
wealthy Spanish region an independent republic during his
earlier speech, but called for a
meeting “as soon as possible”
with the prime minister to discuss Catalonia’s future. Mr.
Rajoy has refused to enter into
talks on Catalonia’s secession
because he says it violates
Spain’s constitution.
On Oct. 10, in an ambiguously worded speech, Mr.
Puigdemont declared Catalonia independent. Moments
later, however, he said he was
suspending the declaration to
offer the government of Mr.
Rajoy the possibility of negotiating independence for the
northeastern region.
refuse to speak with a significant part of [Catalan] society
through their legitimate representatives,” the prime minister
said.
The central government ac-
Prime Minister Rajoy
says Catalonia is
undergoing a ‘conflict
of lawfulness.’
cuses Mr. Puigdemont and
separatist lawmakers of ignoring calls from opposition lawmakers in the regional Catalan
assembly to debate Catalonia’s
future.
Later Monday, a judge or-
dered the head and another
official of Catalonia’s regional
police force, the Mossos d’Esquadra, to hand over their
passports and appear in court
every 15 days while the court
investigates their role in allegedly hindering the work of
Spanish security forces in Barcelona as they investigated
preparations for the unauthorized Oct. 1 referendum on independence, according to
court documents published
Monday.
“We will continue to demonstrate with evidence that
the serious accusations they
ascribe to us do not reflect reality,” the Mossos said on
Twitter.
A spokesman for the 17,000strong force declined to comment further.
10,300 units produced daily.
11 production line managers.
8 critical quality control measures.
1 well-oiled manufacturing plant.
Supporters of Carlos Ocariz, a former opposition mayor who was popular in the Caracas district he
led, react to news that he was strongly defeated by the Socialist candidate Héctor Rodríguez.
Venezuela’s Opposition Has
Tough Choices After Election
CARACAS, Venezuela—Opponents of President Nicolás
Maduro expressed skepticism
over the results of regional
elections the governing party
said it won decisively, leaving
weary Venezuelans facing the
grim prospect of a drawn-out
battle to challenge the vote
and more violent street protests.
By Anatoly
Kurmanaev,
Juan Forero
and Ryan Dube
The election set Venezuela
on a new course of uncertainty
after the pro-government National Electoral Council said
Mr. Maduro’s allies won at
least 17 of 23 gubernatorial
races fought in a contest that
polls had predicted the opposition would win handily.
Opposition leaders had
hoped sweeping victories
would put pressure on Mr. Maduro to enter into negotiations
that would lead to a presidential election in 2018, opening
the way for his likely defeat.
The U.S. on Monday “condemn[ed] the lack of free and
fair elections yesterday in
Venezuela.” The Trump administration recently said it
planned to step up sanctions
against Mr. Maduro and other
officials for human-rights
abuses and suppression of democracy.
“An electoral solution to the
humanitarian, economic and
political crisis in Venezuela
seems increasingly unfeasible,” said Diego Moya-Ocampos, political analyst at IHS
Inc. in London. “What’s coming are more sanctions, more
isolation and economic dependence on China and Russia.”
The opposition coalition,
Democratic Unity said it would
finish counting copies of the
ballots before announcing
what it would do next. A
spokesman, Gerardo Blyde, decried irregularities and said
that the opposition wouldn’t
recognize the results.
The prospect of mobilizing
fresh street protests was
problematic. The last series of
demonstrations that ended in
August were disruptive and
often violent, resulting in 120
deaths.
Venezuela, meanwhile, is
being whipsawed by the
world’s highest inflation rates,
acute food shortages and an
economy that has contracted
by about a third since 2014.
Many Venezuelans awoke
Monday dismayed and incredulous. Some talked of trying to
find a way to leave the country while others wondered
how their family would eat. In
states won by the opposition,
celebration quickly gave way
to fears that the Maduro administration, whose Socialist
movement is represented by
red, would starve their new
governor of resources.
“I don’t understand how we
come to see a map full of red in
Venezuela, when the hope was
that after these elections Nicolás Maduro was on his way
out,” said Ana Morales, a 47year-old housekeeper from Zulia state, where opposition candidate Juan Pablo Guanipa won.
“What am I going to do
now, when there are days I
don’t have anything for dinner
in my house? I’m sure that
Guanipa won’t get any food or
money from the government
to help us,” Ms. Morales said.
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A8 | Tuesday, October 17, 2017
* *
THE WALL STREET JOURNAL.
WORLD NEWS
Iraq Clash Raises Fear of Wider Conflict
U.S.-led coalition calls
for dialogue after Iraqi
forces effectively
retake city from Kurds
what remained of the terror
group in Iraq. “These movements of military vehicles, so
far, have been coordinated
movements, not attacks,” the
coalition said. “We believe the
engagement this morning was
a misunderstanding.”
In the wake of the Kurdish
vote, the Iraqi parliament au-
thorized
Prime
Minister
Haider al-Abadi to deploy
troops to retake disputed territories the Kurds had effectively annexed after driving Islamic State back.
Mr. Abadi said Monday his
goal was to reimpose federal
government authority in Kirkuk
and urged security forces to
protect all citizens of the city,
which has a mixed population
of Kurds, Arab and Turkmen.
The fallout from the referendum has exposed divisions
between the two Kurdish factions that have dominated the
region for decades.
The Kurdistan Democratic
Party is now accusing its rivalturned-ally, Patriotic Union of
Kurdistan, which dominates in
Kirkuk and is closer to Baghdad, of striking a deal with the
Iraqi government to surrender
control over its areas, thereby
allowing the nation’s elite
forces to quickly retake the city.
That was denied by Bafel
Talabani, a senior member of
the PUK: “[Iraqi] forces didn’t
come into Kirkuk with anybody’s permission,” he said.
A senior commander in Iraq’s
Emergency Response Division
said the next target would be
the Bai Hassan and Avana oil
fields, from which the Kurds
have been unilaterally exporting
crude via a pipeline to Turkey
since taking them over in 2014.
Those fields are controlled by
forces loyal to the KDP.
—Ghassan Adnan
in Baghdad
contributed to this article.
since the 2003 invasion and
now see Washington’s backing
of Mr. Abadi as a rebuke.
“The Kurds are amazing,
and have been through a lot,
but we need to get over our
sentimentality,” said Michael
O’Hanlon, a senior fellow in
foreign policy at the Brookings
Institution. “Their ambitions
inside Iraq are not compatible
with a stable internal situation
for that country.”
The Obama administration
returned U.S. forces to Iraq in
2014, some 2½ years after
their high-profile withdrawal,
rushing to the country’s aid as
Islamic State swept the nation
and threatened Baghdad.
At the time, former President Barack Obama, wary of
stumbling back into a costly
occupation, promised American troops would destroy Islamic State but said they
wouldn’t “get dragged into another ground war in Iraq.”
Instead, the U.S. strategy
was to make local forces the
tip of the spear and “advise
and assist” them, rather than
take charge. American troops
embedded with Iraq’s national
security forces and the Kurdish Peshmerga, among other
local fighting groups, and provided arms, advice and air
support, as the locals pushed
back against Islamic State.
As the fight progressed, the
uncomfortable question of
what would come next dogged
U.S. officials. Washington had
backed groups that long had
been at odds, realizing they
could turn on one another after
defeating their common enemy.
The Trump administration
opted to continue the “advise
and assist” strategy, while adjusting tactics to give U.S.
troops in the conflict zone more
leeway to engage the enemy.
One of the first signs the
U.S.’s partners were beginning
to turn on one another came
when the Kurdish leader
Masoud Barzani said in June
that Iraqi Kurdistan would
hold an independence referendum on Sept. 25.
U.S. diplomats went into
overdrive trying to derail the
vote. Mr. Barzani proceeded
anyway,as Kurdish officials
said they had dealt with Baghdad’s dysfunction long enough,
suffered in the fight against
Islamic State and deserved
their own nation.
The U.S. military sought to
play down the extent of the
hostilities, saying some reports about the violence in
Kirkuk had been overstated.
“We have not seen levels of
violence suggested in some
media reports,” Army Col. Rob
Manning told reporters.
ERBIL, Iraq—Iraqi forces
took control of the local government building in Kirkuk on
Monday, pushing out Kurdish
fighters and effectively retaking the oil-rich city after skirmishes that raised fears of a
wider conflict between two of
the closest U.S. allies in the
war against Islamic State.
Elite military units seeking
to restore federal government
authority over territory and
resources seized by Kurdish
forces during the push against
Islamic State advanced toward
Kirkuk overnight, and by evening they had taken control of
the provincial government
headquarters, witnesses and
Kirkuk officials said.
Iraqi forces said they faced
only light resistance in retaking the K1 military base, an
airport, the Kirkuk refinery
and the Baba Gurgur oil field.
There were several casualties on both sides, Kurdish and
Iraqi military commanders
said. Thousands of residents
were fleeing Kirkuk into the
neighboring semiautonomous
Kurdish-led region, leading to
huge traffic jams on the way
out of the city.
Until recently, Iraqi forces
KIRKUK
Continued from Page One
swept through disputed areas
and into the regional capital to
raise the Iraqi flag over the
government center and reassert national control. Kurdish
Peshmerga forces appeared
unprepared for a coordinated
assault, and yielded the heart
of Kirkuk faster than many
military experts expected.
The situation laid bare the
risks of Washington’s decision
to defeat Islamic State by
backing a pair of local forces
without addressing their longsimmering
resentments
against one another. For years,
the U.S. has avoided drawing
up a definitive plan for dealing
with Iraq after the retreat of
Islamic State, preferring instead to wait until the group’s
final defeat and leave the matter up to Iraqi politicians.
President Donald Trump
said U.S. forces wouldn’t take
decisive action to support the
Baghdad government or the
Iraqi Kurds. “We don’t like the
fact that they’re clashing,” Mr.
Trump told reporters at the
White House on Monday. Nevertheless, he said, “We’re not
taking sides.”
The U.S. neutrality offered a
AHMAD AL-RUBAYE/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY ALI A. NABHAN
AND ISABEL COLES
Iraqi forces advanced Monday toward Kirkuk, where thousands of residents fled into the neighboring semiautonomous Kurdish-led region.
and Kurdish fighters had cooperated against Islamic State,
but as the threat posed by the
terror group recedes, they
have turned on each other.
Tensions have been building
since the Kurds voted overwhelmingly to break away
from Iraq in a referendum last
month opposed by Baghdad,
regional powers and the U.S.
Losing Kirkuk and its resources would be a blow to
the Kurds’ long-held dream of
independence, which seemed
closer than ever to realization
after the Iraqi army’s northern
divisions collapsed during the
Islamic State onslaught in
2014. The Kurdish Peshmerga
filled the vacuum, driving back
Islamic State in northern Iraq
and expanding territory under
their control by as much as
40%.
The U.S.-led coalition to defeat Islamic State on Monday
said it supported dialogue between the groups and urged
they focus on stamping out
Lay of the Land
Swaths of northern Syria and Iraq are controlled by an array of Kurdish groups
that operate with varying degrees of autonomy from Damascus and Baghdad.
Areas of Kurdish control
50 miles
TURKEY
50 km
Syria as of Oct. 10; Iraq as of Oct. 6
Qamishli
Eu p hra tes
River
Aleppo
Hasakah
Dohuk
T i g ri s
River
IRAN
Mosul
Sinjar
Erbil
Raqqa
Makhmour
SYRIA
IRAQ
Deir Ezzour
Kirkuk
Hawija
Homs
Palmyra
Boukamal
Tikrit
THE WALL STREET JOURNAL.
Source: Institute for the Study of War
de facto endorsement of Iraq’s
central government and dealt
a blow to Kurdish independence aspirations.
“Inaction is a form of action,” said Lukman Faily, a former Iraqi ambassador to the
U.S. and a Kurd who favors a
united Iraq.
Kurdish leaders forced the
matter with an independence
referendum in September that
Washington and Baghdad failed
to quash. That vote set off a
chain of events that led Mr.
Abadi to take Monday’s actions.
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Iraqi forces took control
of the local government
building in Kirkuk on
Monday, effectively
retaking the oil-rich city
A State Department official
called on all sides to stand
down and refrain from any further provocative actions. The
official warned the biggest winners from tensions would be Islamic State and Iran’s Islamic
Revolutionary Guard Corps.
“This situation requires a
peaceful, political solution,”
the official said. “The U.S., the
government of Iraq, the Kurdistan Regional Government
and our entire coalition must
be united in prioritizing the final defeat of ISIS.”
But Kurdish officials said
the move by Baghdad involved
Iranian-backed militias and
showed Mr. Abadi’s willingness to give way to Iranian influence growing in Iraq.
Others, however, said the
move was a measure Mr. Abadi
needed to take to reassert the
integrity of the Iraqi state.
The violence could mark a
turning point in Washington’s
long and close alliance with
the Iraqi Kurds, who have
served as a critical partner for
U.S. forces in the country
A U.S. Ally Rolls the Dice, and Loses
MIDDLE EAST
CROSSROADS
By Yaroslav Trofimov
Monday’s fall of Kirkuk
made plain the one tangible
result of the independence
referendum Iraqi Kurdish authorities organized last month
against international advice: It
endangered the very survival
of existing Kurdish autonomy.
The Iraqi federal government’s lightning military operation to seize
the Kurdishheld city and
the surrounding oil fields
was the latest
in a series of
steps Baghdad has taken to
chip away at Kurdistan’s freedoms in the aftermath of the
Sept. 25 referendum.
The military offensive follows moves to shut down international flights to Kurdistan airports and curtail its
oil exports via Turkey. Iraqi
Prime Minister Haider alAbadi made a new demand
Monday, saying Kurdish
Peshmerga military forces—
which have always operated
independently—must come
under federal control.
The speed with which Kirkuk—a city of such historical
importance to Kurds that
they call it “the Kurdish Jerusalem”—fell is already
causing a major rift within
Iraq’s Kurdistan Region.
With the region’s two main
political forces accusing each
other of treason, the rising
acrimony has rekindled fears
of a civil war of the kind
that Kurdistan went through
from 1994 to 1997.
“The question now is
whether the Kurdistan Region survives. Its political
leadership has gambled and
lost,” said Gareth Stansfield,
a professor of Middle East
politics at the University of
Exeter in England.
T
he recent events have
shown just how vulnerable landlocked
Iraqi Kurdistan is—and how
badly the region’s president,
Masoud Barzani, overestimated the Kurds’ political
and military strength. With
the U.S. so far not interfering beyond generic calls for
restraint on both sides, and
neighbors Turkey and Iran
siding with Baghdad, the
noose is only likely to
tighten around Kurdistan in
the immediate future.
Iraqi Kurds enjoyed Western support—and military
protection—back at the time
when they fought for self-rule
against Saddam Hussein’s dic-
tatorship. These days, however, a democratically elected
government sits in Baghdad,
whereas Mr. Barzani’s term
expired in 2015 and his legitimacy is contested by major
political forces inside Kurdistan. Those opposition parties also disagreed with his
referendum plans.
Frustration over Mr. Barzani, however, shouldn’t color
the U.S. approach to the Kurdistan crisis going forward, argued Zalmay Khalilzad, a for-
Kirkuk’s fall shows
that the referendum
could lead to less, not
more clout, for Kurds.
mer U.S. ambassador to Iraq
and to the United Nations.
“Yet it is in the U.S. national interest to contain this
and to start negotiations as
soon as possible. Despite the
anger over the referendum
that has occurred, the war between Kurdistan and Iraq,
with Iranian influence rising
in Kurdistan and Iraq, isn’t in
our interest,” he said.
Iran, with its own restive
Kurdish population, was the
most vocal opponent of
Kurdistan’s independence.
The chief of its Quds Force,
Maj. Gen. Qassem Soleimani,
who has nurtured close ties
with Baghdad and Mr. Barzani’s Kurdish opponents,
played a key role in Monday’s takeover of Kirkuk.
Before the referendum,
Kurdistan was at the peak of
its autonomy. Kurdish forces
controlled vast territories,
especially in the oil-rich Kirkuk region, which they
seized after Iraqi troops
abandoned those areas to Islamic State in 2014.
K
urdistan’s Erbil and
Suleimani airports implemented visa policies independent of Baghdad
and were busy with international flights ferrying businesspeople and aid workers.
In the wake of the joint campaign to oust Islamic State
from Mosul, relations between Kurdistan and Baghdad also appeared more cordial than they had ever been.
Mr. Barzani’s insistence on
conducting the independence
referendum despite opposition
from Baghdad, domestic rivals
and virtually the entire international community (with the
notable exception of Israel)
has provided Iraq’s federal
government with the excuse
to regain its authority—and to
reclaim areas, such as Kirkuk,
that it lost in 2014.
Yet if the conflict intensifies and Baghdad overplays
its hand, international public
opinion—and U.S. support—
may yet swing back behind
the Kurds.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
WORLD WATCH
Europeans Slam U.S.
Decision to Pull Out
European foreign ministers
attacked President Donald
Trump’s decision to pull his administration’s backing for the Iranian nuclear agreement, calling
the move a serious mistake that
could lead to a military confrontation with Tehran.
At a European Union meeting
in Luxembourg, foreign ministers
from across the bloc said Europe
will stand by the agreement,
keeping sanctions on Tehran
suspended in line with the 2015
accord. They urged U.S. lawmakers not to endanger the agreement by reimposing sanctions.
“The EU encourages the U.S.
to maintain its commitment” to
the deal “and to consider the implications for the security of the
U.S., its partners and the region
before taking further steps,” the
28 foreign ministers said.
—Laurence Norman
MALTA
Journalist Is Killed
In Car Bomb Attack
A Maltese investigative journalist who exposed the island
nation’s links to offshore tax havens through the leaked Panama
Papers was killed Monday when
a bomb exploded in her car, the
prime minister said.
Daphne Caruana Galizia, 53
years old, had just driven away
from her home when the bomb
went off, Prime Minister Joseph
Muscat said.
WORLD NEWS
Ms. Caruana Galizia’s death
resulted from a “barbaric attack”
that also amounted to an assault
on freedom of expression, Mr.
Muscat said. He described her as
“one of my harshest critics, on a
political and personal level,” as he
denounced her slaying.
— Associated Press
CANADA
Small Businesses
Are Given a Tax Cut
In an effort to quell an uproar
among entrepreneurs over tax
policy, the Liberal government in
Ottawa offered small firms a cut
to their corporate rate.
Prime Minister Justin
Trudeau said the rate paid by
small firms would be cut from
the current 10.5% to 9% as of
Jan. 1, 2019. That tax rate applies on the first 500,000 Canadian dollars (US$401,050) of
business income. —Paul Vieira
LIBERIA
Two Candidates
Qualify for Runoff
Vice President Joseph Nyumah Boakai of the ruling Unity
Party and retired soccer star
George Weah will contest a runoff in November to succeed
President Ellen Johnson Sirleaf
after no candidate got enough
votes in the Oct. 10 election.
The two men, who topped a
field of 20, will vie to succeed
the incumbent, who has served
two six-year terms, the maximum allowed under the constitution.
—Nicholas Bariyo
ISIS-Linked Filipino Killed
BY JAKE MAXWELL WATTS
MANILA—One of the U.S.’s
most-wanted terrorists was
among the last remaining
leaders killed after Philippine
forces pressed forward with
their offensive to retake the
southern city of Marawi from
Islamic State-linked militants,
authorities said.
The bodies of Isnilon Hapilon—who was on the U.S. Department of Justice list of
most-wanted terrorists worldwide, with a reward of as much
as $5 million for his capture—
and Omar Maute were recovered on Monday after the two
leaders were killed as they
moved between concrete structures and mosques in the city’s
old central business district
with a few dozen other fighters
and hostages, government
spokesman Ernesto Abella said.
The two were leading a last
stand against government
troops in Marawi, officials said.
Hapilon was involved in
several kidnappings, including
the 2001 abduction from an island resort of 20 people, U.S.
YONHAP NEWS/NEWSCOM/ZUMA PRESS
The chief of staff of the Philippine military held photos of the
bodies of militants Hapilon and Maute on Monday.
authorities say.
The deaths of Hapilon and
Maute are a long-awaited victory for the government
forces, who, inexperienced in
urban combat, have struggled
to clear the city since it was
occupied in the name of Islamic State by hundreds of
heavily armed fighters in May.
The armed forces said their
offensive had boxed the remaining militant-controlled area to
just a few acres even before the
two leaders were killed.
The remaining combatants
“were seen scampering in disarray,” the armed forces said.
“It will be a matter of days before it can finally be declared
that Marawi has been liberated
from the clutches of terrorists.”
The two leaders had been a
target for the military since
the reported death last month
of Maute’s brother, Abdullah—
though no body was found to
confirm his demise. The brothers were local to the province
and rallied a coalition of fighters under the Islamic State
flag to occupy the city.
Hapilon led his own group
of fighters, a faction of the
Abu Sayyaf Group, which
swore allegiance to Islamic
State in 2014 and joined the
Maute brothers in their occupation of the city. Islamic
State leadership later named
Hapilon as its “emir,” or ruler,
in the Philippines.
The remaining militants in
Marawi, numbering about 30,
the military said, have few
among them with a status similar to the Maute brothers’ or
Hapilon’s. The de facto leader,
some analysts say, is likely to be
Mahmud Ahmad, a Malaysian
whose links to Islamic State in
the Middle East made him the
militants’ primary foreign recruiter. The army says he is still
thought to be in Marawi.
Questions Mount After Somalia Attack
Emergency personnel and
volunteers in Mogadishu spent
a third day sifting through the
rubble of one of the deadliest
vehicle bombings ever, as the
By Matina StevisGridneff in Nairobi,
Kenya, and
Christina Goldbaum
in Mogadishu, Somalia
TAKING FLIGHT: The South Korean air force’s Black Eagles
aerobatic team performed south of Seoul on Monday.
CIVIL RELATIONS SERVICE ARMED FORCES OF THE PHILIPPINES/AP
IRAN NUCLEAR DEAL
Tuesday, October 17, 2017 | A9
* * * * * *
scale of the attack raised questions over the effectiveness of
U.S. and international efforts
to crush al Qaeda-affiliated alShabaab militants.
Officials said more than 300
people died when a truck exploded at a busy intersection in
Somalia’s capital Saturday evening. Smoke still lingered over
the war-hardened coastal city
on Monday, as relatives and
friends gathered for mass fu-
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The attack poses tough
questions for Somali leaders as
well as the U.S. and other international actors that have
spent years fighting an Islamist insurgency that at one
point controlled the capital
and much of Somalia. Although
no one has claimed responsibility for the bombing, experts
said it bore the hallmarks of
al-Shabaab militants, who are
trying to grab power from the
internationally recognized government in Mogadishu.
“Al-Shabaab remains a very
dangerous, committed and sophisticated terrorist organization,” said Joshua Meservey of
the Heritage Foundation, a
conservative Washington-based
think tank. “Everyone, includ-
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The Trump administration
this year eased the rules of engagement in Somalia, allowing
A campaign to crush
al Qaeda-affiliated
al-Shabaab militants
has gone on for years.
it to mount more attacks
against al-Shabaab by simplifying legal approvals. More than
a dozen strikes have killed several targets this year. In 2016,
the U.S. contributed more than
$500 million to security oper-
ations, while millions more
were directed to responding to
a mounting hunger crisis and
other humanitarian goals.
The main military force in
the country remains the African Union’s Amisom, which
has been fighting to reclaim
territory from al-Shabaab for
years. Somalia has been struggling to fully develop its own
robust security forces despite
support from numerous donors, including the U.S.
Two people familiar with
Saturday’s attack said the death
toll was likely much larger than
intended because the truck carrying the bomb exploded next
to a parked vehicle carrying
fuel. That amplified the blast
and might be the reason al-Shabaab, which claims to be propeople and antigovernment,
hasn’t taken responsibility.
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For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A10 | Tuesday, October 17, 2017
IN DEPTH
Hold on power
Despite its economic drawbacks, the centralized approach
works in favor of the Communist Party’s hold on power. The
loser is the private sector, including Western multinationals
operating in China.
The Chinese government has
maintained it can manage the
country’s debt problems, and
its investments in infrastructure and innovation can help
China maintain growth.
China’s leaders have never
been entirely comfortable with
capitalist dynamics. Mr. Xi
seemed an exception, showing
determination to shake up the
bloated state sector in 2012.
Some attributed that to his
experience running Zhejiang
province, where lower barriers
for entrepreneurs led to enormous wealth creation. In Zhejiang, Mr. Xi embraced policies
to nurture private enterprise.
Before he was anointed
China’s leader in 2012, Mr. Xi
vanished for two weeks, an absence never fully explained.
People with knowledge of it say
he was huddling with advisers
over his vision for China. A policy blueprint a year later said
market forces would play a “decisive” role in the economy.
That sent a jolt of anxiety
through an agency called the
State-owned Assets Supervision
and Administration Commission, or Sasac, which holds the
government’s equity in the
largest state companies and supervises them closely.
According to officials familiar with planning at the time,
Mr. Xi considered a bold proposal based on the “Temasek
model,” named for Singapore’s
sovereign-wealth fund. In that
model, investment companies
funded by the Finance Ministry
would take over the ownership
in state companies from Sasac
but leave running them to professional managers. That would
essentially eliminate Sasac. To
test the plan, Mr. Xi sent Vice
Premier Ma Kai to provinces to
meet with state companies.
Sasac saw it was in a fight
for its survival. Senior Sasac officials in Beijing called ahead to
tell colleagues in the provinces
COFFEE
Continued from Page One
now enjoying what is called the
“third wave” in coffee, with emphasis on farm-to-table sourcing and alternative brew methods.
Earlier this year, Extraction
Lab, a coffee shop in Brooklyn,
N.Y., that is connected to Alpha
Dominche, a manufacturer of
brewing equipment, began selling an $18 cup of coffee. It is
made using a $13,900 Alpha
machine that controls every aspect, from water temperature to
timing.
The brew is a Panamaniansourced variety, called Gesha,
sometimes spelled Geisha, once
described by Don Holly, a veteran of the gourmet-coffee industry, as seeing “the face of
God in a cup.”
In Southern California, $55 is
what it will cost to get a special
cup at Klatch Coffee, which
plans to roll out a particularly
prized version next month,
dubbed Esmeralda Geisha 601.
The “601” refers to the price
Workers at debt-laden Wuhan Iron & Steel. It was merged into a rival to create a giant, under a policy that favors big state companies.
Wards of the State
Compared with private companies, state investment in China is now growing faster and state firms are taking on more debt even though they
are less profitable and contribute only about 30% to China’s GDP.
State investment in fixed
assets vs. private investment,
change from a year earlier
Liability-to-equity ratio for
industrial enterprises,
12-month moving average
Return on assets of Chinese
industrial enterprises
State share of China’s GDP
40%
180%
10%
40%
30
160
State owned
State
20
8
Non-state
Total
State
owned
Investment by government
Consumption by government
Investment by state-owned
enterprises
30
Top down
6
20
140
on default by taking it over.
With a larger economy and a
better social safety net, China
is in theory better able to
weather a state-sector shake-up
than two decades ago, when
then-Premier Zhu Rongji engineered one. Mr. Zhu closed
money-losing factories and
broke up some state conglomerates in an effort to spur efficiency through competition.
Instead, among Sasac’s endeavors, said people familiar
with the matter, is the re-establishment of a state aluminum
giant broken up by Mr. Zhu.
The head of Sasac, Xiao Yaq-
ing, rose to prominence in the
earlier upheaval. He was in
charge of the smaller and nimbler Aluminum Corp. of China,
or Chinalco, created out of Premier Zhu’s actions. In 2008,
Chinalco took a stake in the Anglo-Australian miner Rio Tinto
to thwart BHP Billiton’s hostile
bid for it, which Beijing feared
would drive up iron-ore prices.
The gambit worked, showing
state firms could be useful
agents of the Chinese state.
“Strengthening party building is the key to state-sector
reform and making state companies stronger and more competitive,” Mr. Xiao said at a
news conference last month.
Sasac now is reconstituting
a mammoth Chinalco, say the
people with knowledge of the
matter. A Shanghai-listed subsidiary of Chinalco said the
company is working on a plan
to sell shares and then use the
proceeds to acquire assets.
To keep growth from slowing too much, Beijing has kept
the credit tap open. More of
the lending has gone to state
companies than to private ones,
even though state companies
use capital less efficiently. The
resurgence of the state economy is “potentially far more
adverse for China’s long-term
growth and financial stability,”
said Nicholas Lardy, a senior
fellow at the Peterson Institute
for International Economics.
Government efforts to cut
industrial overcapacity have
forced many private coal miners and steel mills out of busi-
At times, China’s top-down
approach, with bureaucrats
rather than competition deciding winners and losers, also
helps China’s private sector. An
example is industrial policies to
foster Chinese domination
across sectors, such as electric
cars, at the expense of foreign
rivals.
More often, the state courts
China’s private companies for
their cash.
This fall, China Unicom, the
weakest of China’s three stateowned telecom carriers, sold
$11.7 billion in shares of its
Shanghai-listed subsidiary to a
group of private investors including internet giants Tencent,
Alibaba and Baidu. Officials
hailed the deal as a triumph of
“mixed-ownership” reform.
In fact, the state’s overall
holdings in China Unicom declined only a little, to about
58% from 63%, according to an
analysis by research firm
Gavekal Dragonomics.
“The essence of such reforms is to make state companies like China Unicom bigger
and stronger,” an official involved in the process said.
Mr. Xi’s increasing emphasis
on ideological purity leaves little room for Western-style capitalism.
A term Mr. Deng and his acolytes used in the 1980s and
’90s for China’s economy was
“socialism with Chinese characteristics.” The emphasis was
clear: addressing a state economy’s problems by applying
market solutions.
Used today, given Mr. Xi’s
increasing emphasis on ideological purity, the term conveys
a different message—that there
is little room for Western-style
capitalism. In a July address
commemorating the party’s
95th birthday, Mr. Xi said:
“What we’re building is socialism with Chinese characteristics, not some other –ism.”
fee at a recent dinner party, following a meal highlighted by
cheese soufflé and a fondue
dish of meat cooked in hot oil.
Porto Rico Importing Co., a
110-year-old coffee specialist in
New York, has varieties that go
for up to nearly $100 a pound.
It no longer carries a type
sometimes referred to as “catpoop coffee,” that it once sold
for $400 a pound, albeit in 2ounce portions.
The brew’s distinction has to
do with how the beans are
sourced—from the feces of the
civet, a coffee-loving catlike animal found in the wild, whose
digestion process is said to improve the taste. Still, Porto Rico
owner Peter Longo said the coffee, which he stopped selling
five years ago, wasn’t necessarily for connoisseurs as much as
those who liked to give it out as
a pricey, one-of-a-kind present.
“It was more to impress,” he
said.
Starbucks features “reserve”
coffees at certain locations. At
its Seattle Reserve Roastery
store, offerings can be priced as
high as $12 per cup—rarefied
terrain for Starbucks, whose
coffee was once considered “expensive” because it cost a buck
or two more than standard options.
Some Starbucks enthusiasts
have created their own pricebe-damned drink by ordering
extra shots of espresso and
bringing their own oversize
vessel. Starbucks says its official policy is to limit beverages
to 31 ounces—its Trenta size—
but fans find their way. William
E. Lewis Jr., a political consultant in Fort Lauderdale, Fla.,
said he once paid $148.99 for a
Starbucks Flat White coffee
with 170 extra shots.
Mr. Lewis said he didn’t consume it all at once, saying that
much caffeine in one sitting
might be deadly. Instead, he
packed it to go and enjoyed it
over a couple of days. “It’s all
about the hunt. It’s all about
doing it.”
Eleven Madison Park has offered tableside coffee service
since 2010, at lower price
points. Some who have tried it
say it’s worth the money—not
just in terms of the brew, but
the theatrics of the presentation and how it fits into the
overall “aesthetic” of the meal,
as Paul H. Ting, a two-time visitor to the restaurant, describes
it.
Would Dr. Ting, an anesthesiologist in Charlottesville, Va.,
do it again? “I am not going to
pay $20-plus for a cup of coffee
every morning, but as part of a
fine-dining experience, I would
consider it,” he said.
Plenty of New Yorkers see no
need for such extremes. “I like a
dark roast, not too acidic, that’s
it,” said Manhattan resident
Fedner La Chapelle as he stood
outside a Dunkin’ Donuts ready
to enjoy his cup.
Still, Eleven Madison Park
says it gets up to 10 requests a
day for its tableside coffee service, which is an add-on to the
restaurant’s $295 10-course
tasting menu and features offerings that cost less than the
Wush Wush.
Billy Peelle, the restaurant’s
general manager, said the coffees are nevertheless so expensive for the restaurant to purchase that it hardly earns a
profit on them.
“We make more money on a
cappuccino,” he said.
4
10
120
Private
0
2008
’10
*Through August
’15
Non-state
100
’17*
2002
10
2
’05
’10
0
0
’15
2000
’05
’10
’15
Sources: Gavekal Dragonomics; Wind Information (fixed vs. private investment)
they must convince the vice
premier of Sasac’s importance
to the state sector’s future.
Officials latched onto a core
objective of Mr. Xi, strengthening the Communist Party, arguing this was best achieved by
increasing, not reducing, state
companies’ footprint.
The question whether market forces helped or hurt the
party came to a head in 2015.
China had an epic stock
rally, partly the result of a push
to encourage stock investing
and turn equity markets into a
funding vehicle for businesses.
In June the tide turned.
Stocks began a tumble that reverberated around the world
and embarrassed Beijing. Then
in August, investors seized on a
brief experiment with a freer
currency to pummel the yuan.
Mr. Xi expressed deep displeasure with regulators who
seemed unable to prevent investment wagers against
China’s stocks and its currency.
Change of mind
Over a few months, China’s
commitment to market forces
crumbled. State firms stepped
in with stock buying. The government cracked down on investors who had bet on stocks
to fall. And the central bank set
aside all other priorities to
prop up the yuan, whose weakness was driving huge amounts
of capital out of the country.
The conclusion of the Chinese leadership since then, say
officials and government advisper pound that the coffee sold
for at auction.
The store is set to offer it at
ticketed events. But for those
who can’t attend, Klatch will
ship the coffee out—for the
same $55—in 15-gram packages
of pre-roasted beans, good for
making one cup. A souvenir
mug will come with mail orders.
Klatch owner Mike Perry
said he picks up everything
from berries to stone fruit to
“notes of jasmine” with each
sip. As with other exclusive varieties, he doesn’t dare suggest
adding milk or sugar.
Devoción, the coffee supplier
that provides Wush Wush to
Eleven Madison Park exclusively, has other hard-to-find
varieties it sells at its Brooklyn
store—for as much as $100 a
pound. The store refers to them
as its “grand cru” coffees, borrowing a term from the wine
world used to denote the best
vineyards.
Simon Kopec, a 27-year-old
New Yorker who shops regularly at Devoción, makes the
point that high-end coffee is
more affordable per serving
than, say, caviar or fine wine.
ers, has been that the up-anddown cycles of the markets,
something they can’t control,
make outcomes too uncertain.
In May of this year, China’s
central bank added to its formula for setting the yuan’s official rate a “countercyclical” factor—a tool to defy pressures
exerted by currency markets.
The move came after officials
complained the yuan seemed
unable to go up even when
China’s economy improved.
China’s foreign-exchange
regulator, Pan Gongsheng, explained the rationale at an
event in July attended by European business executives, say
people who attended. Speculators would have kept driving
down the yuan, he said, posing
intolerable risks to China’s
economy.
Chinese officials still publicly tout the markets and participation in the economy by
private and foreign capital. But
the enthusiasm for markets
from the early days of Mr. Xi’s
presidency is gone, say officials
and government advisers.
Some China watchers theorize Mr. Xi will revive an
agenda of pro-market overhauls after the party congress
as his power is consolidated.
Among signs pointing the other
way are that under Mr. Xi,
Sasac’s influence has grown,
not shrunk. “Nobody talks
about the Temasek model anymore,” said a Sasac official.
In the past few years, Sasac
has spearheaded a wave of industrial mergers. The consoli-
dation hasn’t led to improved
efficiency or profitability, economists and analysts say. Instead, Sasac often has relied on
big state companies to take on
loss-making smaller ones just
to keep them going.
Baoshan Iron and Steel acquired a debt-laden rival, Wuhan Iron and Steel, last year in
a deal that formed the world’s
No. 2 steelmaker by capacity,
after ArcelorMittal SA. In 2015,
China National Machinery Industry Corp., known as Sinomach, ensured the survival of
an equipment maker teetering
Beijing seemed to
sour on markets after
investors pummeled
stocks in 2015.
CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL
Continued from Page One
kets are now something to be
deeply wary of—potential
agents of chaos.
“Risks are everywhere in the
society, and now more than
ever, the government should
play a bigger role” in guiding
the economy, said Liu Shangxi,
head of the Chinese Academy
of Fiscal Sciences.
One consequence of the renewed stress on central control
is more credit is flowing into
state businesses that are less
productive than private ones.
China’s state capitalism is rife
with inefficiencies. It steers investment to unneeded building
projects and industries such as
steel that already overproduce.
This leaves China to tackle
problems such as soaring debt
and overbuilding with little
benefit of the market discipline
free enterprise might supply.
Heavier state intervention
ultimately threatens to squeeze
out private enterprise, sap innovation and slow China’s rise
into rich-country ranks, according to economists and analysts.
Badly handled, China’s economy could end up mired in low
growth, delaying the expected
date sometime next decade of
passing the U.S. in size.
WANG HE/GETTY IMAGES
CHINA
New York restaurant Eleven
Madison Park offers tableside
coffee service.
But he also admits he is in it for
the bragging rights.
“I want to have that connoisseur badge of sorts amongst my
friends,” said Mr. Kopec, who
served about $50 of Gesha cof-
ness. State companies have
generally been left intact, and
some have seen improved profits as private competition
shriveled.
Beijing’s plans to cut coal
output inspired expectations
the least-competitive mines,
mostly small and high-polluting
ones, would be forced to close.
Instead, China ordered all
mines to shut production a certain number of days of the year.
The centralized approach
didn’t make the coal industry
leaner, but in a roundabout way
it worked in Beijing’s favor.
When state power generators
complained of higher coal
prices, the government allowed
more production days and
asked state companies to sell
coal below market prices. The
result of relying on markets to
sort it out would have been
much less predictable, officials
say.
In August, Beijing combined
under one roof Shenhua Group,
the country’s top coal miner,
and China Guodian Group, one
of its largest power generators,
a move that created one of the
world’s largest power companies and made it easier to control prices of both coal and
electricity.
Today, private investment is
growing much more slowly
than state investment in China.
Authorities have brought to
heel the global ambitions of
private Chinese conglomerates
that had made inroads in Hollywood and bought trophy hotels
in the West. Instead, they are
favoring government-condoned
projects overseas.
2005
’10
’15
THE WALL STREET JOURNAL.
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To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 17, 2017 | A10A
NY
* * * * * *
GREATER NEW YORK
New Jersey dangles
big tax breaks in push
for Newark to become
second headquarters
BY KEIKO MORRIS
AND MIKE VILENSKY
New Jersey is making a
high-dollar pitch for Newark as
Amazon.com Inc.’s second
headquarters, offering up to $7
billion in state and city tax incentives.
Republican Gov. Chris Christie joined Newark Mayor Ras
Baraka and Sen. Cory Booker,
both Democrats, in Newark on
Monday to tout the city’s progress in the past decade and
highlight its transportation options, educational institutions,
technology infrastructure and
businesses that have made
Newark home.
In September Amazon said it
would find a second corporate
headquarters in North America
and solicit proposals from cities around the country. That set
off a nationwide competition
among municipal leaders to
land the company’s new home,
which could create up to
50,000 jobs. Initial proposals
are due Thursday.
New Jersey is offering Amazon $5 billion in tax incentives
over the next 10 years and
upon the creation of 50,000
jobs, Mr. Christie said. In addition, Newark is offering a property-tax abatement potentially
worth $1 billion and another $1
billion that Amazon’s new Newark workers would gain over 20
years from the city waiving its
local wage tax, the governor
said.
“Let any state go and try to
beat that package along with
what we have offered here in
Newark,” Mr. Christie said.
In New York, meanwhile,
business leaders on Monday
urged Amazon to put its next
headquarters somewhere in the
five boroughs, even as the city’s
liberal advocacy groups came
out against tax incentives to
lure the giant online retailer.
The Partnership for New
York City, a nonprofit promoting
economic-development,
sent a letter to Amazon touting
the city’s benefits. The letter
was also provided to New York
City Mayor Bill de Blasio and
New York Gov. Andrew Cuomo,
both Democrats.
The letter lists data showing
the city’s high number of college and professional-school
graduates, universities and
high-earning companies. “[New
York City] features unparalleled
diversity of industry talent and
institutional resources,” it said.
The chairman of IAC and the
chief executives of Citigroup
Inc. and Morgan Stanley are
among the dozens of signato-
ries from the city’s business
world.
Not everyone in New York
City is as enthusiastic about
the idea. Advocacy groups
wrote a letter to Messrs. de
Blasio and Cuomo raising concerns about wooing Amazon.
“You should focus on pushing Amazon to be a better corporate citizen and improving
how it treats workers,” the letter said. “You should also…work
to ensure that this multibilliondollar company does not receive financial incentives simply for doing business here.”
Signatories on that letter included many of the mayor’s political allies, including the public-education group Alliance for
Quality Education, the immigrant-advocacy group Make the
Road New York, and the Association for Neighborhood and
Housing Development.
A spokesperson for Amazon
didn’t comment.
Yankees Come Home and Take Game Three
BRAD PENNER/REUTERS
Improv Group Is Moving Uptown
The Upright Citizens Brigade Theatre will be moving
out of its venue in Manhattan’s Chelsea neighborhood,
home to its brand of improvisational comedy for more than
a decade, and relocating uptown to Hell’s Kitchen.
Upright Citizens Brigade,
the comedy group co-founded
by Amy Poehler, has acquired
a lease for the former performance space of the Pearl Theatre Company, which filed for
bankruptcy in June.
The new theater is located
at 555 W. 42nd St. The move
is scheduled to occur by the
end of November and will be
commemorated with special
performances to celebrate the
change and bid farewell to the
Chelsea venue, which the improv group took over in 2003.
Located on West 26th
Street in a basement below a
Gristedes supermarket, the
Chelsea theater has become
hallowed ground in New York
City’s comedy scene and
served as a launchpad for the
careers of numerous actors
and writers. Live versions of
the Comedy Central television
shows “Broad City” and what
became “The President Show”
were performed in the Chelsea
theater.
Upright Citizens Brigade
had long been searching for a
venue that complies with the
Americans with Disabilities
Act, said Shannon O’Neill, artistic director of Upright Citizens Brigade Theatre New
York. The theater plans to be-
gin performing at the Hell’s
Kitchen location at the beginning of December, she said.
“We have a very diverse
group of students, performers
and patrons and we want to be
able to serve all of them,” Ms.
O’Neill said. “Right now, the
Chelsea theater doesn’t allow
that.”
Ms. O’Neill acknowledged
moving out of Chelsea will be
tough for many people connected to Upright Citizens Brigade who have grown fond of
the theater’s quirks, but said
veteran performers she informed of the move over the
weekend received the news
positively and expressed excitement about the new venue.
The move reflects Upright
Citizens Brigade’s maturation
as an institution over the last
Ahmad Rahimi in May. His lawyer said an appeal is planned.
Rahimi Guilty
Of Planting
Chelsea Bombs
BY REBECCA DAVIS O’BRIEN
AND THOMAS MACMILLAN
DOWN BY ONE: Aaron Judge rounded the bases after hitting a three-run homer in the Yankees’ 8-1 win over the Astros on Monday.
The Pinstripes trail 2 to 1 in the best-of-seven American League Championship Series, with game four set for Tuesday at Yankee Stadium.
BY JONATHAN RANDLES
MIKE SEGAR/REUTERS
Pitch to Amazon: $7 Billion
dozen years as it moves on
from a basement that was converted into a performance
space to a venue designed for
theatrical productions. During
its 14-year residency at the
Chelsea location, Upright Citizens Brigade has grown and
today includes an improv
training center and additional
theaters in the East Village
and Los Angeles.
The former Pearl Theatre
location is a 160-seat theater
with more room backstage for
performers, a higher ceiling
and no obstructions blocking
audience members’ lines of
sight to the stage, Ms. O’Neill
said. There are pillars in the
Chelsea theater that can obstruct views of the stage depending on where members of
the audience are seated.
A federal jury in Manhattan
on Monday found Ahmad Rahimi guilty on all counts in
connection with planting two
bombs in September 2016, including one that exploded and
injured more than two dozen
people.
Mr. Rahimi, a 29-year-old
naturalized U.S. citizen who
lived in Elizabeth, N.J., faces a
mandatory life sentence in
prison. A lawyer for Mr. Rahimi said they planned to appeal the verdict, which came
after less than a full day of
deliberations.
“Today’s verdict is a victory for New York City, a victory for America in its fight
against terror,” acting U.S. Attorney Joon H. Kim said outside the Manhattan federal
courthouse Monday. “Rahimi’s
crimes of hate have been met
with swift and resolute justice.”
Law-enforcement officials
say Mr. Rahimi, who was born
in Afghanistan, was inspired
by al Qaeda and Islamic State
ideology to plant the bombs,
which put the city on high
alert and led to a manhunt
across two states.
At about 8:30 p.m. on Sept.
17, 2016, a bomb—which authorities said was placed in a
pressure cooker and left near
a dumpster—detonated on
23rd Street in Manhattan’s
Chelsea neighborhood, injuring 30 people and causing
widespread property damage.
Shortly afterward, a civilian call to police revealed a
second, undetonated bomb in
a bag nearby on 27th Street.
Police defused the bomb, a
pressure cooker packaged
with ball bearings and steel
nuts and attached to a cellphone.
Early that same day, a
bomb in Seaside Park, N.J.,
some 80 miles south of New
York City, had exploded without causing injury. Mr. Rahimi
was also accused of planting
that bomb, although he wasn’t
tried on counts related to it.
Police also say Mr. Rahimi
left explosive devices in a
backpack at a train station in
Elizabeth, about 20 miles
from New York, which were
found the day after the New
York bomb detonated.
The following morning,
Sept. 19, Mr. Rahimi was arrested in Linden, N.J., following a shootout in which several police officers were
injured and Mr. Rahimi was
shot in the leg. He still faces
state charges in New Jersey in
connection with the shootout.
Federal prosecutors in
‘Rahimi’s crimes of
hate have been met
with swift and
resolute justice.’
Manhattan charged Mr. Rahimi with eight counts, all in
connection with the two Manhattan bombs, including using
a weapon of mass destruction,
bombing a place of public use
and interstate transport of explosive devices.
The trial began on Oct. 2.
The government called more
50 witnesses and presented
evidence that included DNA
and fingerprints, records of
purchases, dozens of videos,
terrorist propaganda found on
a laptop, and a letter written
by Mr. Rahimi claiming responsibility for the attacks.
Attorneys for Mr. Rahimi
declined to mount a case for
his defense, calling no witnesses, and in closing arguments addressed only the
Please see BOMBS page A10B
Connecticut Governor Proposes a ‘Slimmed-Down’ Budget
BY JOSEPH DE AVILA
Connecticut Gov. Dannel
Malloy is hoping the fourth
time’s a charm.
Nearly four months after the
start of the fiscal year, Mr. Malloy on Monday released a new
budget proposal, his fourth for
this year. It comes amid protracted negotiations with lawmakers on how to eliminate a
two-year, $3.5 billion shortfall
and threats of further creditrating downgrades.
The governor’s latest proposal includes spending cuts
for education, municipal aid
and social-service programs. It
also eliminates some surcharges and new taxes on seasonal homes that Democrats
had proposed earlier this year.
“Folks, it is a slimmeddown budget,” Mr. Malloy, a
Democrat, said at a news conference. “I’m trying to meet
people where I can meet them.”
S&P Global Ratings said Friday the state could be headed
for another downgrade as the
budget impasse continues. The
firm lowered the state’s rating
from AA- to A+ in May.
Moody’s Investors Service
said Monday it placed 26 Connecticut towns and cities under
review for downgrades, citing
the prolonged budget impasse.
It also assigned negative outlooks to ratings for an additional 25 municipalities.
Mr. Malloy signed an executive order at the start of the
fiscal year on July 1 to keep
state operations running until
a full budget agreement passes.
Monday’s proposal is his
first counteroffer after he vetoed a budget plan passed by
the Legislature in September.
The governor said the lawmakers’ plan was filled with
gimmicks and would invite legal challenges from public-sector unions for making changes
to the pension systems for
teachers and state employees.
Mr. Malloy has kept one of
his most controversial propos-
als in his plan: shifting $281.6
million in teacher pension costs
from the state to municipalities
over the next two years.
The new budget immediately
drew fire from Mr. Malloy’s opponents. “It is obvious that the
governor’s proposal, including
his devastating cuts to certain
core services and shifting of
state expenses onto towns and
cities, would not pass the Legislature in its current form,”
said Len Fasano, the Senate’s
top-ranked Republican.
Plan’s 2-Year Effect
On Municipalities
$178 million less for education
$9 million more for special
education
$282 million in new teacher
pension costs
$92 million additional funds
for Hartford
Source: Gov. Dannel Malloy’s office
OYSTER PERPETUAL
submariner date
rolex
oyster perpetual and submariner
are ® trademarks.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A10B | Tuesday, October 17, 2017
NY
* *
THE WALL STREET JOURNAL.
GREATER NEW YORK
Dismissal
Denied in
Trial of
Menendez
KEVIN MAZUR/GETTY IMAGES
BY THOMAS MACMILLAN
Bruce Springsteen performing his one-man show, ‘Springsteen on Broadway,’ at the Walter Kerr Theatre last week. Tickets on the resale market start around $1,500.
Springsteen Tickets Rock Broadway
BY CHARLES PASSY
Tickets for Bruce Springsteen’s one-man Broadway
show are going for as much as
$12,500 on the resale market,
putting the musician into
“Hamilton” territory.
The
New
Jersey-born
rocker’s “Springsteen on
Broadway”
show,
which
opened Thursday to mostly
positive reviews after a brief
preview period, is sold out for
its entire run through Feb. 3.
Seats on StubHub, the resale
site, start around $1,500 for
most performances, with select tickets costing five figures
in a few instances.
The original prices ranged
from $213.50 to $875, not including 26 tickets made available for every performance
through a lottery for $75.
Last week, the show took in
$1.9 million at the box office,
according to figures released Monday by the Broadway League, a trade group.
That puts “Springsteen on
Broadway” almost in the same
league as such sales juggernauts as “Hamilton,” “The
Lion King” and “Hello, Dolly!”
That is despite the fact Mr.
Springsteen’s show, which
consists of an extended monologue with musical interludes,
is being staged in one of
Broadway’s relatively smaller
venues—the Walter Kerr Theatre, which has slightly under
1,000 seats.
And for all the success that
“Hamilton” has enjoyed, tickets for the perpetually soldout Tony Award-winning show
start at much lower prices on
StubHub—typically, around
Grosses Last Week
1. “Hamilton,” $2,9 million
2. “Hello, Dolly!,” $2.4 million
3. “The Lion King,” $2.1 million
4. “Springsteen on Broadway,”
$1.9 million
5. “Wicked,” $1.8 million
6. “Dear Evan Hansen,” $1.7
million
7. “Aladdin,” $1.5 million
8. “Come From Away,” $1.3
million
9. “The Book of Mormon,”
$1.3 million
10. “The Phantom of the Opera,” $1.1 million
Source: The Broadway League
$300 to $400.
It remains to be seen if
“Springsteen on Broadway”
will take home any Tonys.
The awards program has
yet to determine what, if any,
categories would apply to the
production, which was written
and directed by Mr. Springsteen and tracks his life and
career while featuring such
hits as “Born to Run” and
“Dancing in the Dark.”
It could be considered eligible in the Best Musical category, with additional awards for
everything from direction to
acting. But in past years, the
awards program has put some
nontraditional productions in a
“special theatrical event” category, such as the actor and comedian Billy Crystal’s one-man
show, “700 Sundays.”
The earliest the matter may
be decided is Nov. 9, when an
awards administration committee meets.
It is quite possible that the
show won’t put itself into
play for the awards. One possible reason: Given the
show’s financial success and
the fact it has such a limited
run, producers may not want
to make free tickets available
to the roughly 800 voters, a
requirement for any Tony
contender.
Officials with the show declined to comment on the
matter. But a source close to
the production pointed out
that the tickets aren’t there
to be had at this point in any
case—unless Mr. Springsteen
decides to add more performances. The source added
that the show, however, is inviting members of the Tony
administration committee,
suggesting that it is vying for
some recognition.
Demand Boosts Industrial Rents
Strong demand for modern
warehouse space helped push
asking rents for New Jersey’s
industrial buildings up sharply
in the third quarter, with big
retail tenants willing to pay a
premium for locations close to
New York City, according to
real-estate services firm JLL.
Asking rents for industrial
space in New Jersey rose to
$7.09 a square foot in the third
quarter, an 11.8% increase from
the same period last year, JLL
said.
The central New Jersey
submarket reached $6.31 a
square foot, a 14.5% bump
from the previous year. Northern New Jersey’s asking rents
climbed 10.5% to $7.69 a
square foot, according to JLL’s
report.
Vacancy rates dropped to
historic lows, with New Jersey’s overall rate falling 0.6
percentage point to 4%. The
central New Jersey submarket’s vacancy rate dropped to
3.4% in the third quarter.
About 6.5 million square
feet of industrial space was
under construction during the
quarter. The amount under
construction is relatively high
for New Jersey, where land is
A new
way,
a better
way
to buy a wedding suit.
limited, analysts said.
“There is more tenant demand than there is inventory
coming online, proposed or
under construction,” said David Knee, JLL executive managing director. “So in the near
term it means rents are going
to continue to grow.”
Online retailers are driving
demand. Wayfair Inc., an online home-goods retailer,
signed a lease for 1.3 million
square feet at a Cranbury development, according to JLL.
In certain submarkets such
as the Meadowlands, where
there is a lack of quality warehouse space despite proximity
BOMBS
Continued from page A10A
counts related to the undetonated bomb on 27th Street.
Mr. Rahimi’s lawyer, Sabrina Shroff, told jurors Friday that her client should be
acquitted on counts related to
the 27th Street bomb, saying
prosecutors hadn’t shown that
he intended to detonate it.
“You can despise Mr. Rahimi for doing something so
heinous as leaving a bomb on
a public street,” Ms. Shroff
said. But the fact that the 27th
Street device didn’t detonate
shows that Mr. Rahimi didn’t
intend to set it off, she argued.
“Your common sense tells
you that this is a man who
knows how to detonate a
bomb. If he wanted to, he
would have done so,” Ms.
Shroff said. She and other
lawyers for Mr. Rahimi declined to comment outside the
courthouse following the verdict.
In a rebuttal statement on
Friday, federal prosecutor Andrew DeFilippis said Ms.
Shroff’s argument “does not
pass the smell test.”
“If the defendant had his
way, there would have been
bodies on 27th Street,” Mr.
DeFilippis said. “This was not
cold feet…this was cold
blood.”
The jury foreman spoke
briefly with reporters as he
left the courthouse Monday,
saying: “It’s never easy for
somebody to take part in
something like this.”
to New York City and the
ports, the jump in rents was
even sharper than the state’s
overall increase. The average
asking rent in the Meadowlands rose 16% to $8.95 a
square foot.
Somerset County on the
I-287 corridor has become a
destination for tenants fleeing
“skyrocketing asking rates” in
locations along the New Jersey Turnpike, according to the
report. But that increased demand has pushed the vacancy
rate to 1.6% and driven up average asking rates to $6.74 a
square foot, a 23% increase
from last year.
GREATER NEW YORK WATCH
SEXUAL HARASSMENT
Companies Could
Lose Tax Breaks
A New York lawmaker says
the state should refuse to grant
tax credits to companies that
fail to address repeated problems of sexual harassment in
the workplace.
State Assemblywoman Linda
Rosenthal said on Monday that
she has written legislation that
would require firms to disclose
sexual harassment complaints
and settlements going back five
years when they apply for tax
breaks or other state business
incentives. Companies with a
poor record of handling harassment would be ineligible for
state help.
Ms. Rosenthal, a Manhattan
Democrat, says she thought of
the bill following the sexual harassment and assault allegations
against film producer Harvey
Weinstein. The state needs to
consider all the ways it can to
fight harassment and discourage
companies from covering up or
enabling outrageous misconduct,
she says.
—Associated Press
IMMIGRATION
Candidate Offers
Couple Sanctuary
A Christian Indonesian couple
who fear they will be deported if
they follow orders to report to
U.S. immigration officials have
taken refuge in a church run by
JULIO CORTEZ/ASSOCIATED PRESS
BY KEIKO MORRIS
A federal judge on Monday rejected a defense motion
to dismiss the corruption case
against U.S. Sen. Bob Menendez.
Mr. Menendez, a two-term
New Jersey Democrat, is currently on trial in Newark federal court on fraud and bribery charges. Prosecutors say
he took $1 million in gifts and
campaign contributions in exchange for political favors for
Florida doctor Salomon Melgen, his co-defendant in the
trial.
Both men have pleaded not
guilty. The senator has said
the government is seeking to
criminalize his longstanding
friendship with Dr. Melgen.
Prosecutors have sought to
persuade jurors that Mr. Menendez used his office to help
Dr. Melgen in a medical billing
dispute, to secure travel visas
for the doctor’s girlfriends and
to intervene in a government
donation to the Dominican Republic in an effort to benefit
Dr. Melgen’s investments.
When the prosecution
rested its case Wednesday after five weeks of testimony, lawyers for Mr. Menendez called for the case to be
dismissed. They argued that
the government hadn’t presented sufficient evidence.
Prosecutors have sought to
connect gifts from Dr. Melgen
to specific actions taken by
Mr. Menendez. But the case
rests largely on circumstantial
evidence; there is no smokinggun proof showing an explicit
quid-pro-quo relationship between the two men, legal experts have said.
The Menendez case is complicated by a U.S. Supreme
Court decision in a corruption
case involving former Virginia
Gov. Bob McDonnell, which
narrowed the definition of official corruption.
The prosecution has argued
that the case against Mr. Menendez depends on a “stream
of benefits” theory of bribery,
in which a public official receives many gifts over a long
period. That theory remains
valid even after the McDonnell
decision, prosecutors say. Mr.
Menendez’s lawyers disagree.
Defense lawyers argued
Monday that the prosecution
hadn’t shown that Mr. Menendez and Dr. Melgen had a specific agreement to exchange
gifts for political acts, as required under the McDonnell
decision.
But Judge William Walls
said the McDonnell decision
doesn’t state that such specificity is required to prove
criminal wrongdoing.
Arthur Jemmy in the Reformed Church of Highland Park.
a candidate in New Jersey’s governor’s race.
The Rev. Seth Kaper-Dale, the
Green Party candidate, offered
sanctuary in the Reformed
Church of Highland Park to Arthur Jemmy and his wife, Silfia
Tobing, last week. The pair,
whose visas have expired, fear
they will join seven other Indonesians in New Jersey who were
deported and four others who
left on their own as Immigration
and Customs Enforcement reviewed their status this year.
Mr. Kaper-Dale, who is waging a long-shot bid in the race to
succeed Republican Gov. Chris
Christie, has highlighted his longrunning efforts to help immigrants living in the state illegally
in his campaign. He said he has
reached out to attorneys for the
family, and said his actions
weren’t politically motivated.
—Associated Press
NEW YORK
State Encourages
Organ Donation
New York state is taking
steps to make it easier to sign
up as an organ donor.
Democratic Gov. Andrew
Cuomo announced a new executive order Monday directing
state agencies to work to make
it easier to enroll on the state’s
Donate Life Registry, the list of
organ donors. The order also directs officials to offer the choice
of signing up whenever New
Yorkers apply for state services
or benefits. The state is also revamping the registry enrollment
website to make it easier to use.
The governor says more than
84,000 people have signed up to
be donors in New York state so
far this year.
—Associated Press
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
LIFE&ARTS
Tuesday, October 17, 2017 | A11
TURNING POINTS | By Clare Ansberry
Was It Just a Coincidence?
CHANCES ARE you’ve had a coincidence in your life, maybe a particularly memorable one that
makes you wonder why.
Carol Tippett did. Ms. Tippett,
and her husband, Eddie Hedger, of
Portland, Ore., owned a franchise
called Hoodz that cleaned commercial kitchen equipment. They
were at a critical point, having just
landed a big contract, when Eddie
was killed in a motorcycle accident
in 2014. During the months that
followed, Ms. Tippett struggled
over whether to invest in the business or sell it. At one point, she
found herself in a taxi, en route to
look at a truck that she wasn’t
sure she should buy.
“I was just thinking to myself,
‘Oh Eddie, I wish you were here
helping me,’ ” she says. As soon as
the taxi pulled into the parking lot,
the song “Truly, Madly, Deeply,” by
Savage Garden came on the radio.
It was a song Eddie sang to her
and had become their special song.
“I got chills,” says Ms. Tippett. “I
felt like it couldn’t have been anything else but Eddie reaching out
to me letting me know I was doing
the right thing.”
A coincidence is an unexpected
concurrence of events. It can be
remarkable but relatively insignificant, like running into a colleague
and his family at a little vegetarian
restaurant in Hawaii. It can also be
strangely providential, like missing
a plane that later crashed.
Scholars don’t agree on their
cause, with some citing probability, others God, and still others our
subconscious. Coincidences are
random and due to probability,
says David Hand, a British statistician and author of “The Improbability Principle: Why Coincidences,
Miracles and Rare Events Happen
Every Day.” Prof. Hand cites five
laws that explain why the improbable happens, including the law of
truly large numbers. “If something
has a tiny chance of occurring but
enough opportunity to occur, it
will occur,” he says.
People inject meaning into coincidences, he says, because we seek
patterns and order. But there’s no
great metaphysical force at work
or significance in them, he says.
That doesn’t mean they aren’t
wonderful and interesting. He
marvels over his own coincidences. The same month his improbability book was published, a
novel “Coincidence” was published
in the U.S., which told the story of
a London-based professor who is
making a study of coincidences,
like Prof. Hand. The female protagonist teaches at the same university as Prof. Hand’s wife. The
fictional and real professor shared
the same birthday—June 30. J.W.
Ironmonger, who wrote “Coincidence,” says he never came across
Prof. Hand and his work before
the book was published.
Although they might seem rare,
coincidences are more common
than we might think and are becoming even more so with social
media, which provides greater op-
CRISTINA SPANÒ
The unexpected concurrence of events can be strangely providential; When there is something more at work than chance
portunities to discover people,
who might have the same birthday,
middle name or third-grade
teacher. They can happen so often
that some people become anxious
and obsessed with coincidence.
They see someone in the morning
and twice more that day and become paranoid.
Several of Bernard Beitman’s patients need what he has termed coincidence counseling. “People get
very perplexed by them, seeing a
person over and over again in a
day. They start to think they are a
little crazy,” says Dr. Beitman, a
former chairman of the Department
of Psychiatry at the University of
Missouri-Columbia and author of
“Connecting with Coincidence.”
Sometimes, too, we subconsciously create our own coincidences. We don’t fill a gas tank, so
we run out of gas and can’t get to
a dreaded date. It might look a
meaningful coincidence that affirmed our reluctance, but it’s
more likely we sabotaged the date.
Based on an online survey compiled in 2016 of 1,551 people who
experienced coincidences, Dr. Beitman found the most common type
of coincidences involve thinking of
calling someone, only to have that
person unexpectedly call you. He
also found that people who are intuitive or highly sensitive tend to
experience more coincidences.
Those who are more outgoing and
willing to strike up conversations
with strangers are also more likely
to find unexpected connections.
Dr. Beitman, who believes there
is more to coincidences than probability, said coincidences followed
him through his life, one of the
most memorable being when he was
31 and living in San Francisco. His
father lived in Connecticut. At 11
p.m., Dr. Beitman started choking
over the sink as if something was
caught in his throat although he
was not eating or drinking anything.
It was strange, but he went to bed.
Scholars don’t agree on
their cause, with some
citing probability, God,
or our subconscious.
The next morning his brother called
and said that his father had died at
2 a.m. after choking on blood.
He calls that experience simulpathity, a term he coined, which
means experiencing or feeling another’s distress at a distance. Identical twins often experience simulpathity. Another category is
serendipity—finding what you need
when you need it, or looking for one
thing and finding another. The person you met at a party you didn’t
want to attend steers you to a job.
Mary Ann Bohrer was working
for a major public-relations firm in
New York when she started doing
pro bono work for a national domestic-violence hotline. She re-
ceived a call from a marketing executive of the company
underwriting the hotline who
wanted to meet the following week
after hearing about her pro bono
work from the hotline director. She
told him she was traveling. The
two of them ended up on the same
plane flying to Plano, Texas. They
talked. He offered her a job. She
left the PR firm and began working
full time on the hotline.
“It was just so weird,” says Ms.
Bohrer, who is writing a book on
intuition in her free time. “He
called me out of the blue and we
ended up on the same plane.”
David Spiegelhalter, a Cambridge
University mathematician, gathers
coincidences, loves them and sees
them all as random chance. One
married couple discovered that
they were likely born in the same
bed in a little cottage hospital in a
small German town. His favorite is
the story he read in news reports
of a lost wedding ring found years
later on an unearthed carrot, which
is amazing in and of itself, but
even more so that it happened
twice in six years: once in Canada
and the other in Sweden.
Chance, he says, is often associated with risk and bad things happening. He sees coincidences as
the positive side of chance. “You
meet an old friend you haven’t
seen for years or closely connect
to someone who was a stranger.
They can be enormously positive
and reinforce our connectedness to
each other and the world.”
The Top 10
Coincidences
n I think of a question only to
have it answered by an external
source (i.e. radio, TV, or other
people) before I can ask it.
n I think of an idea and hear
or see it on the radio, TV, or
internet.
n I think of calling someone,
only to have that person unexpectedly call me.
n I advance in my work/career/
education by being in the right
place at the right time.
n I need something, and the
need is then met without my
having to do anything.
n I am introduced to people
who unexpectedly further my
work/career.
n I run into a friend in an outof-the-way place.
n When my phone rings, I know
who is calling without checking
the screen or using personalized
ring tones.
n Meaningful coincidence helps
determine my educational path.
n I think about someone and
then that person unexpectedly
drops by my house or office, or
passes me in the hall or street.
Source: Bernard Beitman
COMIC BOOKS
BATMAN TAKES ON A MORE HUMAN DIMENSION
DC ENTERTAINMENT (2)
BY MICHAEL RAPOPORT
Batman aka Bruce Wayne, above left, shows human vulnerabilities in the latest comic books written by Tom King, inset.
BATMAN, the Dark Knight, finally
has a little light in his life. He’s
still driven to fight evil and protect
Gotham City but over the past year
he’s become a more human,
emotionally vulnerable
figure than the perpetually grim, obsessed avenger
portrayed in many
earlier comic
books. Recently,
he confessed his
deepest secret to
Catwoman, his onagain, off-again
love—and asked her to
marry him. The next installment in the life of the DC
Entertainment superhero, which
goes on sale this week, deals with
the repercussions of her answer.
The Dark Knight’s transformation is the handiwork of Tom King,
who has been writing Batman’s adventures for more than a year now.
“What I like best about Batman
is that he’s sort of a machine that
turns pain into hope,” Mr. King
said. “He’s had the horrible happen
to him”— witnessing his parents’
murder as a boy. “He’s lived a hellish life, and it’s done all it could to
pull him down, and he takes that
pain and turns it into his
strength.”
Mr. King, who is 39
years old, brings a
unique perspective
to his superheroes, thanks to
the seven years
he spent working
for the Central Intelligence Agency
both overseas and in
the U.S. He served in
Iraq after the U.S. overthrew Saddam Hussein’s regime, and recruited people to penetrate terrorist networks. “It was
all focused on preventing the next
9/11,” he said.
The career change to comics
from counterterrorism doesn’t
seem odd to Mr. King. “I always
Please see BATMAN page A13
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THE WALL STREET JOURNAL.
A12 | Tuesday, October 17, 2017
LIFE & ARTS
YOUR HEALTH | By Sumathi Reddy
A New Search for
Male Birth Control
A FEDERAL EFFORT is under
way to develop a new kind of
male contraceptive, a development that scientists say would be
an important public-health breakthrough. It’s also an effort that
has struggled for years.
The National Institutes of
Health plan to start recruiting
couples soon for a clinical trial of
a gel that is applied to men’s
shoulders.
The gel includes the hormone
progestin, which prevents the testes from making testosterone at a
level that supports sperm production. It also contains testosterone
to maintain normal blood levels to
try to prevent a hormone imbalance that might cause side effects.
An easily accessible contraception for men could have far-reaching effects, though scientists
don’t expect a male contraceptive
to have as huge of an impact as
the introduction of birth control
pill decades ago. They expect it to
reduce unintended pregnancies. It
would allow men to better control
their own fertility. It could also
allow women to discontinue their
birth control.
Efforts at developing a male
contraceptive have been held back
by lack of interest from big pharmaceutical companies. A large human clinical trial several years
ago ended early because some
participants experienced depression and mood disorders.
The NIH trial is expected to
take about three years. If successful, researchers would move on to
another trial. That means any
commercial product is years, or
even a decade, away.
An earlier six-month study had
men apply the progestin gel on
their abdomens and a commercially available testosterone treatment on their shoulders. The researchers found that the gel
suppressed sperm production after a couple of months. The men’s
sperm count went down to less
than one million per milliliter, the
threshold used for contraception.
The results were published in The
Journal of Clinical Endocrinology
and Metabolism in 2012.
Researchers wanted a smaller
volume of gel and a single preparation to make it easier to use. So
they reformulated the material,
combining the two hormones into
a gel that requires only about a
teaspoon that is applied to each
shoulder. They tested the new
product with about 25 men in a
one-month study. It succeeded:
The only side effect was mild acne.
Now the researchers plan to
study the gel application on a
FROM TOP: JON KRAUSE; ALAMY
Researchers are testing a contraceptive gel that’s shown early signs of working—but it still faces hurdles
larger scale, enrolling 420 couples
at nine sites on four continents.
Men will begin applying the gel
every day, while their partners
will continue using their usual
contraception. Once the men
reach a low enough sperm count,
the couples will stop using any
other contraception.
“The progestin shuts down the
pathway,” says Diana Blithe, who
is heading up the trial. She is
chief of the contraceptive development program at the National
Institute of Child Health and Human Development, part of the
NIH. “The intention is that the
couple will use the method for up
to a year, and at the end of that
time there are hopefully few pregnancies, with a failure rate similar
to typical use of oral contraceptives.”
Dr. Blithe says researchers are
testing the product on men’s
shoulders because currently available products for patients with
low testosterone instruct patients
to apply testosterone gel there.
The typical failure rate of oral
contraceptives for women is 7%,
while that of condoms is 13%, according to the most recent data
published in March in the journal
Perspectives on Sexual and Reproductive Health. Such rates take
into account improper use of the
product.
A California facility is producing large quantities of the gel as
researchers await feedback on
their protocol from the FDA and
their European counterparts. They
will begin enrolling couples in
2018.
Even if the test succeeds, researchers haven’t found a pharmaceutical company willing to
make the gel.
“At the moment no one is beating down our door,” Dr. Blithe
says. “I hope they will be. I think
this is really groundbreaking territory and somebody may decide
that this is an opportunity.”
Some experts advocate looking
Weather
d
Edmonton
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20s
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l
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Billings
Ottawa
Bismarckk
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Toronto
p / . Paul
pls
Mpls./St.
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Winnipeg
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Portland
70s
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Calgar
Calgary
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Seattle
Eugene
<0
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Montreal
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Augusta
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Boston
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Pierre Sioux
20s
Honolulu
l l
A h g
Anchorage
80s
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Miami
Showers
70s
U.S. Forecasts
City
Omaha
Orlando
Philadelphia
Phoenix
Pittsburgh
Portland, Maine
Portland, Ore.
Sacramento
St. Louis
Salt Lake City
San Francisco
Santa Fe
Seattle
Sioux Falls
Wash., D.C.
Tomorrow
Hi Lo W
75 45 pc
83 71 pc
72 52 s
97 70 s
68 44 s
67 47 s
65 52 r
81 49 pc
74 51 s
73 48 s
67 53 pc
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60 52 r
73 43 pc
70 49 s
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
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Today
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Tomorrow
Hi Lo W
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84 76 t
59 47 c
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79 52 t
96 81 s
54 49 r
54 49 sh
City
Frankfurt
Geneva
Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
Manila
Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
Riyadh
Rome
San Juan
Seoul
Shanghai
Singapore
Sydney
Taipei
Tokyo
Toronto
Vancouver
Warsaw
Zurich
Today
Hi Lo W
70 49 s
72 45 pc
88 72 t
86 75 pc
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61 53 pc
68 52 t
89 78 c
82 59 s
68 54 pc
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100 69 s
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88 80 t
70 52 s
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83 77 sh
62 56 r
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2
Tomorrow
Hi Lo W
66 49 pc
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87 72 c
88 74 c
74 58 s
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62 54 sh
61 49 t
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82 67 s
72 53 pc
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88 79 sh
64 49 c
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62 55 pc
69 52 s
54 48 r
69 50 pc
67 44 pc
3
4
5
14
6
7
8
10
23
24
25
28
29
31
The probability of contraceptive
failure after one year of use,
due to both user error and
failure of method to work:
All methods combined: 10.3%
Injectable: 4%
Pill: 7.2%
Male condom: 12.6%
Withdrawal: 19.9%
Long-acting reversible (IUD and
the implant): 1.4%
Source: Perspectives on Sexual and
Reproductive Health (March 2017)
38
42
43
47
51
13
2 Termination,
figuratively
3 Reunion spot
26
4 Bottle up, as bad
memories
30
33
39
40
44
45
48
34
35
36
53
54
58
5 Closing line?
6 Bombast
41
7 Best Musical
winner at the
1980 Tonys
46
49
52
Down
1 Gentle touch
22
32
37
12
19
21
27
11
16
18
20
50
9
15
17
57
59
60
61
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66
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63
64
Across
1 Talk show
pioneer Jack
5 Light racing boat
10 Former filly
14 Wheel connector
15 Quail cluster
16 Sure-footed goat
17 •Enticement
19 Mesmerized
20 Biblical high
point
21 With less
59-Down
23 Fr. women
24 Janis who sang
“At Seventeen”
26 Speedy Amtrak
train
27
•Ring preventer
29 Rank above
viscount
31 Start
32 Gardner of
“Show Boat”
33 Son of Aphrodite
37 Purpose
38 •Unparalleled
41 Pipe connection
42 Offender, to a
cop
44 Sleepy colleague
45 First-rate
47 Polygraph
hiccups,
presumably
49
•Table for two
couples, in
restaurant lingo
50 Musical chord
10 •Sainthood
requirement
12 Beat back
13 Supplementary
58 “Better Things”
star Adlon
25 Campbell of the
“Scream” films
60 27-Down target
61 •Sendup
27 Forceful
takeover
65 Diamond
complement
28 Chopin
composition
67 “Orinoco Flow”
singer
68 Woodland
bounder
69 Garden store buy
70 Entry-level job
abbr.
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
34 Keeps in check
35 Oakland A’s
slugger Matt
36 Strike
39 Like a luxury
suite
40 Isn’t caught by
48 Title princess in a
Gilbert & Sullivan
operetta
49 Like a trumpet’s
bell
53 Computer aboard 18 Tries a bite of
the Discovery
22 Sound receiver
One
23 Speedy
55 “Blast!”
Gonzales,
for one
56 Budget offering
66 Parcels
32 Metronome’s
sweep
46 Shrinking body of
Asia
9 Loretta of
country
11 Let up
SOLE SINGERS | By Pancho Harrison
30 Big name in
transmission
repair
43 •Serving dish
8 Sign before
Virgo
55
56
s
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Today
Tomorrow
City
Hi Lo W Hi Lo W
Anchorage
38 27 pc 36 26 s
Atlanta
68 47 s
70 48 s
Austin
78 45 s
82 57 s
Baltimore
62 40 s
72 46 s
Boise
69 43 pc 72 48 pc
Boston
57 47 s
69 51 s
Burlington
59 45 s
67 51 s
Charlotte
67 41 s
70 43 s
Chicago
68 49 s
69 52 s
Cleveland
66 47 s
71 53 s
Dallas
77 51 s
83 56 s
Denver
76 44 s
76 45 s
Detroit
67 45 s
68 52 s
Honolulu
87 75 s
87 76 pc
Houston
79 51 s
83 61 s
Indianapolis
66 45 s
68 50 s
Kansas City
70 49 s
73 49 s
Las Vegas
87 63 s
87 64 s
Little Rock
71 45 s
77 48 s
Los Angeles
92 69 pc 86 64 s
Miami
87 76 t
86 77 pc
Milwaukee
68 50 s
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Minneapolis
69 51 s
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Nashville
69 43 s
74 46 s
New Orleans
76 63 s
80 66 s
New York City
60 48 s
72 55 s
Oklahoma City
73 48 s
77 52 s
Flurries
Ice
Today
Hi Lo W
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80 70 t
62 46 s
98 70 s
61 41 s
56 39 s
60 49 r
83 48 pc
70 47 s
71 44 pc
74 51 pc
72 39 s
60 47 r
75 47 s
63 46 s
1
30s
rtford
Hartford
k
Milwaukee
t
Detroit
Buffalo
ew Y
New
Yorkk
70s
Cleve
Cl
l d
Cleveland
Ch
Chic
g
Chicago
Salt Lake City
Dess Moines
80s Reno
Cheyenne Omaha
Ph
hil d lph
hi
Philadelphia
80s
h
Pittsburgh
g
Indianapolis
Sacramento
p i fi ld
Springfield
Denver
90s
hington
hi
gton D.C.
DC
Washington
an Francisco
i
San
Kansas
Ch
Charles
l t
Charleston
70s Topeka
City
100+
h
d
Richmond
C
d
Colorado
Las
50s
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L
Lou
St.
Louis
LLouisville
Lou
ill
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Wichita
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Springs
Vega
Vegas
l igh
h
Raleigh
60s CCharlotte
Los A
Ange
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Angeles
h l tt
anta Fe
Santa
h ill
Memphis
hi Nashville
100s Ph
C
b
Columbia
Albuquerque
Phoenix
Oklahoma City
Warm
Rain
San Diego
A
Atlanta
Little Rock
90s Tucson
Tuc
i h
Birmingham
Ft. Worth
Cold
D
ll
Dallas
El P
Paso
T-storms
70s
Jack
Jackson
k
Jacksonville
bil
Mobile
80s
A
ti
Austin
10s
Stationary Snow
d
Orlando
t
Houston
ew Orleans
New
Ta
p
Tampa
San
Antonio
an
A
80s
30s
40s
How Contraceptives
Compare
The WSJ Daily Crossword | Edited by Mike Shenk
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
50s
to nonhormonal approaches to developing a male contraceptive.
Other methods being studied
could inhibit the sperm’s ability
to fertilize an egg, inhibit sperm
mobility or interfere with the
sperm transfer process by creating a blockage in the vas deferens, the tube that sperm travel
down before getting to the urethra, without requiring surgery.
Aaron Hamlin is executive director of the Male Contraception
Initiative, a nonprofit that funds
and advocates for nonhormonal
male birth control. Hormonal contraception has the issue of potential side effects and can take several months to start working and
require testing of the sperm
count.
Mr. Hamlin says at least three
companies are working on methods that would create a blockage
in the vas deferens, a nonsurgical
variation on the vasectomy. The
question that remains, he says, is
making it reversible.
50 General
movement
51 Fix a loose lace
52 Downright silly
54 Tell tale item
57 Starbucks stack
59 See 21-Across
62 Bartender who
serves Homer
63 Kvetchers’ cries
64 D.C. baseballer,
for short
Previous Puzzle’s Solution
T A L C
A L O U
MA P L
T
A Q U
F O U R
E R I E
E T C
T A K E
C M
A C H E
C H A R
T I N G
E D G E
D E E D
MO P
I D E
E L E A
R E S S
A
S OM E
C E L
H O T L
O N
I
O N
E
F O R
R E D
E
L O
S
AM
S
Y E
S
N
A
O
F
H
E S
S C A
A L
MA
I P S
C E
U R O
B
T A I
O S E
O K
N S
EW
MA
I T
G E
R R
E C
S A
N
A N
Z O
A N
L
E N
A U
S T
T
H
I
N
E
S
A
T
E
D
L
O
O
N
S
A
N
N
E
D S
R A
Y X
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 17, 2017 | A13
LIFE & ARTS
CLOCKWISE FROM LEFT: MONIKA MOGI/MOMA; LEVI STRAUSS & CO. ARCHIVES; SCHOTT NYC; MOMA
Dashiki, door-knocker
earrings and Dutch wax
interpreted for the
exhibition by Monika
Mogi, left; Levi Strauss
waist overalls (1890), right
EXHIBITION REVIEW
A Sociology Class
On Iconic Items
Pieces from Levi’s to the Speedo, seen through the lens of artistic modernity
New York
IT’S A LITTLE LATE in the day
to be defensive about fashion. Museums of art and design that don’t
let clothing in the door don’t look
pure—they look stubbornly patriarchal (dissing fashion as a female
form) or close-minded (judging it
ephemeral and therefore frivolous). Fashion brands and design
signatures are common coin today, no matter what one’s level of
income or education. And we’re
all semioticians when it
comes to clothes, making
choices that carry political and poetic subtexts
whether we know it or
not. With the exhibition
“Items: Is Fashion
Modern?” the
Museum of Modern Art has fi-
BATMAN
Continued from page A11
wanted to be a writer—the CIA’s
the weird thing,” he said in a recent interview at New York Comic
Con.
In fact, he said, his CIA work
gave him a pretty solid grounding
in understanding people who work
under extreme conditions and put
themselves at risk for the greater
good. That comes in handy when
writing about superheroes.
“They require the same basic
skill, which is empathy,” he said.
As a CIA officer, “you have to sit
across from someone that you
don’t know anything about, that
you can’t relate to, with different
values, and you have to be inside
their head, and know what they
want more than they know. And
that’s all a writer does, all day
long.”
At DC, Mr. King recently picked
up an additional assignment: writing the adventures of Mister Miracle. Like Batman, the character has
survived trauma. Mister Miracle is
a super-escape artist who grew up
on the hellish planet Apokolips.
“What that did to him and how it
affected him is what the story’s
about,” Mr. King said.
Mr. King wanted to work in
comics before he joined the CIA,
and during the 1990s interned at
DC and Marvel Comics. He earned
a degree in philosophy and history
from Columbia University, worked
in the U.S. Justice Department and
intended to go to law school—until
the 9/11 attacks motivated him to
nally come to the party.
“Items” is actually the second
exhibition on fashion in MoMA’s
history. The question in its title is
an echo of MoMA’s first, in 1944,
an exhibition called “Are Clothes
Modern?” That show was curated
by the architect and social historian
Bernard Rudofsky, and its press release stated: “It will not be a style
or fashion show; it will not display
costumes… The purpose of the exhibition is to bring about an entirely new and fresh approach to
the subject of clothes.” We are not
told whether it succeeded
in this purpose.
In their introductory wall
text, the exhibition’s curators,
Paola Antonelli—MoMA
senior curator,
Department of
Architecture and
join the agency.
He worked in counterterrorism
as an operations officer. “I’ve seen
people at their absolute worst, the
worst of humanity,” he said. “I’ve
sat across from monsters who
would destroy me and my family,
and I’ve asked them for help. And
I’ve seen the best of humanity, colleagues of mine who for no reason
at all were risking their lives to
save everyone.”
He isn’t allowed to go into detail
about his CIA work, but it informs
everything he writes. “I can write
about the emotions of it,” he said.
“If you’re going to be a writer, if
you’re going to write Batman or
anything, you have to draw from
your life. That was my life.”
Mr. King left the agency because
he didn’t want to be apart from his
wife, Colleen, and their three children any longer. At one point, in
the middle of an interrogation
overseas, he called his wife to wish
her a happy birthday.
“I couldn’t be the CIA officer I
wanted to be and the father I
wanted to be,” he said. “I was
raised by a single mother, my dad
wasn’t in my life and I wanted to
be in my kids’ lives.”
He started writing and had a
novel about superheroes, “A Once
Crowded Sky,” published in 2012,
before breaking into comics. He
first attracted widespread acclaim
for his take on the Vision, Marvel’s
android hero. In Mr. King’s story,
the Vision tries to create his own
family and live an ordinary suburban life, with tragic results. The
series won an Eisner Award, one
of the comics industry’s highest
honors.
Before taking on Batman, Mr.
Design—and curatorial assistant
Michelle Millar Fisher, explain that
in questioning fashion’s modernity
they are using the definition of
“modern” that’s applied to architecture and design: “a constructive
attitude based on the unity of the
arts, working together on society’s
needs, aspirations, and priorities.
In this exhibition, garments created
for the benefit of many coexist
with those made for the delight of
a few. What they have in common
is their influence on the world over
the past one hundred years.”
And so an alphabetical list of 111
“items” takes up an entire wall at
the entrance to the exhibition. The
black print on the white wall is purposely generic (just as the word
“items” is), as if establishing a fashion baseline. Between item 001
(Levi’s 501s) and item 111 (YSL
Touche Éclat, a cosmetic used for
facial contouring), the chosen garments and accessories run the
catalog, in her essay “Who’s Afraid
of Fashion?,” Ms. Antonelli admits
that at first she “felt anxiety about
using ‘fashion’ in the title” of this
show, but then chose to embrace
the word. All right. But the wall
text, overly didactic, has the effect
of holding the subject at arm’s
length. And one’s looking, despite
those inventive prototypes, is too
often unrewarded. A black nylon
backpack, even one by Prada
(1984), does not thrill. And who
wants to gaze at a Fitbit? Because
so many of the items are mundane—Headphones! Bucket Hats! a
Red Lipstick!—the viewer must
spend a lot of time reading about
why a piece is included, and this is
tedious. “Items” begins to feel like
a very long sociology class. In its
decision to bring fashion on board
MoMA has every right to set the
context. But does seriousness have
to be such a slog?
Items: Is Fashion Modern?
The Museum of Modern Art, through
Jan. 28, 2018
Ms. Jacobs writes about culture
and fashion for Vanity Fair.
One-Star Perfecto Leather
Motorcycle Jacket (late 1950s),
below; New Era 59FIFTY
style New York Yankee
scarlet fitted cap
(1996), left
Tom King, who writes the Batman
comics, right, also wrote ‘The Sheriff
of Babylon,’ above, a murder mystery.
King wrote “The Sheriff of Babylon,” a murder mystery set in postinvasion Iraq, for DC’s Vertigo imprint. It’s the book most directly
inspired by his CIA experience and
the only one he had the agency vet
to make sure he wasn’t giving
away secrets. The CIA didn’t ask
for any changes, Mr. King said,
adding “I know the lines I’m not
supposed to cross.”
When dealing with a character
like Batman who’s been around almost 80 years and has been in
thousands of stories, he said, “the
question is what can you do that’s
new. And the only thing you can do,
the only thing you can bring that
nobody else can bring, is yourself.”
DC ENTERTAINMENT (2)
BY LAURA JACOBS
gamut, as in this sampling: Aviator Sunglasses, Birkin Bag,
Cheongsam, Dashiki, Flip-Flops,
Kippah, Monogram, Pearl Necklace, Speedo, Tattoo, Wonderbra. Haute and humble, bohemian and Brahmin, Western
and Eastern, male and female.
Some of the items aren’t
even items—Fleece, GoreTex, Dutch Wax—but fabrics
or fabric treatments.
The show fills the sixth
floor Special Exhibitions
gallery, a huge space divided roughly into three
sections. It does not move
alphabetically but in loose
groupings that address
ideas: silhouette, technology, modesty, messaging,
sports and power. The
curators bring two and
sometimes three levels
of exploration to each
item.
First there’s the stereotype: the item as it is
collectively envisioned.
Some items have many examples—11 Little Black Dresses show
the changing silhouette of the LBD
through the decades—while others,
like the Turtleneck, have just one
(but what a one: It’s Issey Miyake’s
1980 design for Sony employees—a
subtle seam bisecting the front—
which Steve Jobs asked Mr. Miyake
to make for him as well).
Then there’s the historical archetype, which is discussed in label text and illustrated in videos.
The Snugli, for instance, patented
in 1969, is supported by photographs showing diverse cultural iterations of baby slings worn fore
and aft, as well as a kangaroo with
a baby in its pouch.
About a third of the items on
display include prototypes, specially commissioned works that reconsider the stereotype, either
through sustainable materials or
futuristic technical leaps. These are
the most interesting pieces in the
show. A prototype Shift Dress designed by Stella McCartney is made
of a lustrous sunflower-yellow fabric spun from manmade spider’s
silk. And Pia Interlandi’s Little
Black (Death) Dress is a funeral
shroud that turns white, through
heat transfer, wherever it is
touched by mourners. Beguiling is
Richard Nicoll’s Optic Slip Dress
from 2015, conceived in collaboration with Studio XO and reproduced here. Its fiber-optic
fabric gives it a spectral glow, a bioluminescence.
In the exhibition
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A14 | Tuesday, October 17, 2017
THE WALL STREET JOURNAL.
* ****
SPORTS
BASKETBALL
Rockets’ Plan to Shoot Past the Warriors
Why the NBA’s most aggressive team wants to shatter the record for most 3-pointers in a season—again
BY BEN COHEN
The Rockets want to shoot more than
50 threes per game—which would
break the NBA record they set last year.
Team (year)
Avg. 3-pt attempts/game
Rockets (2018)
50?
NBA leaders
Rockets (2017)
40.3
Cavaliers (2017)
33.9
Celtics (2017)
33.4
Rockets (2015)
32.7
Warriors (2016)
31.6
Note: Year to season
Source: Basketball–reference.com
THE WALL STREET JOURNAL.
EZRA SHAW/GETTY IMAGES
THE HOUSTON ROCKETS had
one of the most explosive offenses
ever last year because they shot by
far the most 3-pointers of any
team in NBA history. And now they
want to shoot more. A lot more.
“We can definitely average more
than we did last year,” Rockets
coach Mike D’Antoni said in an interview. “I don’t think we averaged
50. We could average 50 this year.”
That sounds completely nuts. No
team before last year had taken 50
threes in any game. D’Antoni wants
his team to do it every game.
The Rockets averaged 40 last
season and destroyed the record
for most 3-point attempts by 23%.
They would incinerate their own
record by another 24% if they
somehow average 50 this season.
They also would likely become the
first NBA team to shoot more 3pointers than 2-pointers.
But it isn’t completely nuts. It’s
only slightly nuts. And only
slightly nuts is what it takes to
win in today’s NBA because the
Golden State Warriors still exist.
The Warriors were the best regular-season team ever two seasons
ago. They were undeniably better
last season. And they have reason
to believe they will be even better
when this season begins Tuesday
night against the Rockets.
They also explain why the NBA’s
off-season was such a circus that it
might as well have involved elephants. This was a summer when
the Warriors’ biggest threats—the
Cleveland Cavaliers, San Antonio
Spurs, Boston Celtics and especially
the Oklahoma City Thunder—made
bold moves to beat a team that often
appears unbeatable. But the Rockets
were the most aggressive participant
in the league’s escalating arms race.
They traded for Chris Paul even
though they already have James
Harden. They added versatile wing
players to deploy in small-ball lineups and improve their defense.
And they realized that shooting an
unprecedented number of 3-pointers wasn’t shooting enough.
The analytics suggested there
was still value to be exploited behind the arc. So their coach wants
them to be more extreme this year.
The way that D’Antoni talks
about 3-pointers is the way he
used to talk about pace when his
mid-2000s Phoenix Suns teams
played faster than anyone in the
league. He makes radical ideas
sound perfectly rational. Take his
thoughts on whether there is such
a thing as too many 3-pointers.
“I don’t think so,” he said. “If
it’s a bad shot, it’s too many. If it’s
still the right shot, and you’ve got
the right guy shooting it, then I
Ready for Launch
James Harden of the Houston Rockets
shoots over Golden State’s Stephen Curry.
don’t think so.”
The Rockets’ goal isn’t necessarily to shoot 3-pointers at an extraordinary rate. D’Antoni simply
wants them to take the first good
shot they get. “You can’t give up going to the basket and getting in the
lane and creating fouls,” he said.
“Threes should be a product of that.
As long as they come off your driving and kicking, then you take as
many threes as they give you.”
But sometimes there are no
threes to be taken. He doesn’t mind
when teams do whatever they can
to stop the Rockets from launching.
That attention gives them space to
chase the highly efficient shots—
layups and free throws—that come
from attacking the rim instead.
“Maybe we get so great at driving that we only average 40 threes,”
D’Antoni said. “I’m fine with that.”
Only 40 threes? The Rockets
also came into last season with the
explicit goal of breaking the record
for 3-point attempts per game. It
was 32.6. They shattered the mark.
But it shouldn’t have been a surprise that the Rockets had the 10th
best offense of all time in D’Antoni’s
first season. His offensive genius has
always been embracing strategies
that seem counterintuitive until they
become conventional. Which makes
D’Antoni a perfect match for Houston general manager Daryl Morey.
In a recent interview, when asked
whether the Rockets had reached 3point equilibrium yet, Morey pulled
the statistics of the Rio Grande Valley Vipers, his Petri dish of a G
League team. He pointed out that
the Vipers once averaged 45.4
threes over an entire season.
“The league will keep changing
until the expected points and all
the different actions on the floor
converge into a similar number,”
Morey said. “I do not think we’re
there yet.”
Shooting more 3-pointers than
anyone thought possible isn’t their
only progressive scheme. The
Rockets paired Harden and Paul in
the off-season so they could play
together. But no less interesting is
Houston’s plan to play them apart.
Paul and Harden playing the
same position for the same team
means Houston can keep a star
point guard on the court even
when its other star point guard is
on the bench. They have the luxury
of a future Hall of Famer running
the team for 48 minutes. It wasn’t
long after Paul signed that D’Antoni started dreaming about exactly that possibility.
“As soon as the ink was halfway
dry,” he said. “We just have to make
sure we stagger them enough to do
it.”
The addition of Paul gives them
more of everything this year. More
stops on defense. More transition
opportunities, more possessions
and more variety on offense. And
the potential for more 3-pointers.
“The more threes we get up,”
said forward Ryan Anderson, “the
better our offense is.”
It isn’t only that the Rockets expect to take more threes. They also
expect to take smarter threes.
The beauty of their two-pointguard lineup is that it should create
open looks for players who should
never be left open. For example,
Paul and Harden will bump Anderson and Eric Gordon to the corners,
where there is a blatant advantage:
The arc is nearly two feet closer to
the basket. But they were so rarely
positioned in the corners last year
that they somehow took more
threes from beyond 27 feet. “I’d
much rather shoot an open corner
three than one five feet outside the
arc,” Anderson said.
That’s one of the reasons it isn’t
unthinkable for Houston to hit
D’Antoni’s number. The Rockets
had five exhibitions to get ready
for their first crack at the Warriors
on Tuesday. They took a rather absurd 61% of their preseason shots
from behind the arc. And their average number of 3-point attempts:
precisely 50 per game.
FOOTBALL | By Jason Gay
Aaron Rodgers
busted his collarbone,
will need surgery, and
may be lost for the
rest of the football season. It’s a bummer, not
just for Green Bay Packers lunatics, but also for sports fans in
general—Rodgers is one of the
most thrilling players in the NFL,
athletic and canny, capable of pulling a last-second victory out of
his…let’s just say there’s no character in the game quite like Aaron
Rodgers. The under-fire NFL front
office and its television partners
probably reached for the bourbon
Sunday night.
The only thing NFL fans like
more than great quarterbacks is
screaming about who should replace one after he’s injured. Nothing alters a team like losing a good
QB, and for every Gehrig over Pipp
ascension (Tom Brady taking over
for an injured Drew Bledsoe is the
biggest, and Jeff Hostetler won a
Super Bowl for the Giants after
taking over for a hurt Phil Simms),
there are countless tales of seasons lost when the top man goes
down unexpectedly.
It’s a nightmare. Football is rich
with tough-guy “Next Man Up”
culture—as in, it’s a sport with frequent injury (the NFL is also without banged-up stars J.J. Watt and
Odell Beckham Jr.), and replacements need to be at the ready, but
quarterback is a different story.
Most of the teams in the NFL don’t
even have a QB they feel OK about
asking for a lift to the airport,
much less starting an NFL game.
As soon as Rodgers got into the
injury cart, speculation began to
rage. And of course the attention
went to the biggest names first.
Would the Packers bring in Colin
Kaepernick—currently a free agent
without a team—or Tony Romo,
currently singing an unexpectedly
gorgeous duet of “Islands in the
Stream” with Jim Nantz every
weekend as an analyst for CBS?
Packers coach Mike McCarthy
pooh-poohed an outside talent
search, saying that newly elevated
Packers No. 2 “Brett Hundley is my
quarterback, Joe Callahan is the
backup, that’s the direction we’re
going.” McCarthy doubled down on
the pooh-pooh on Monday, snapping at a reporter who raised
Kaepernick as a possibility. “I got
three years invested in Brett
Hundley. Two years invested in
Joe Callahan. The quarterback
room is exactly where it needs to
be. OK?” the coach said, sounding
like your parents when they say
they have McDonald’s at home.
This won’t stop the speculation,
however, since A) insufferable
sports media knuckleheads like me
can’t help ourselves and B) Kaepernick and Romo have talent and
Wisconsin roots and C) Brett
Hundley and Joe Callahan
are…Brett Hundley and Joe Callahan (Hundley also donated three
interceptions in a loss to the Vikings Sunday). Kaepernick may
still be tangled amid the protest
BRAD REMPEL/REUTERS
CAN GREEN BAY RALLY
WITHOUT RODGERS?
Green Bay Packers quarterback Aaron Rodgers broke his collarbone in Sunday’s game against the Minnesota Vikings.
controversy (he also has filed a
grievance with the league, alleging
collusion among NFL ownership to
keep him out of the game), and
Romo was hobbled by injuries late
in his career and has made a nice
transition to TV, but there’s a
cheery sentimental twist to bringing them back to their home state.
If Hundley struggles, and if Callahan steps in and struggles, too,
you can expect more of the same.
I’m surprised no one’s gotten
onto the Brett Favre bandwagon.
I’m serious. Sort of. OK, not really.
You don’t have to reintroduce
Favre to Green Bay. You don’t have
to give him directions to the stadium. The guy still has a steakhouse across the street from Lambeau Field, the Hall of Fame
Chophouse.
I ate there once, when it was
still named for Favre. Tremendous
baked potato. Tremendous.
I know what you’re thinking.
Brett Favre has been out of the
NFL for quite a while. He was
pretty old and gray and craggy
when he left. How old is he now?
I checked. Brett Favre is just 74
years old. He’s a spring chicken!
He’s still got 15 more years in the
tank—at least. (Fine...he’s 48.)
Favre wound down his career
playing a couple seasons for the
rival Vikings, an act Wisconsin
fans viewed as a betrayal. But he
returned to Lambeau a couple of
years ago for a jersey retirement
ceremony, and the city went bonkers.
Favre told the football writer Ed
Werder “absolutely not” when
Werder asked him about replacing
Rodgers. Favre was also fined
$50,000 by the NFL in 2010 for
what the league said was his lack
of cooperation with an investigation that he sent inappropriate
photos and texts to a woman while
playing for the Jets in 2008.
Someone ask Mike McCarthy
about Favre this week, just to see
if he’ll completely blow a gasket.
(You might want to hide behind a
garbage can after asking.) Kaepernick and Romo will loom, and I
wouldn’t be stunned if other quarterback names surface as well.
(Who is going to start a Peyton
Manning rumor?) That’s the way it
works in the quarterback-deficient
NFL.
Aaron Rodgers is down, and it
looks like it could be a long season
in Green Bay—and not in a good
way.
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THE WALL STREET JOURNAL.
Tuesday, October 17, 2017 | A15
OPINION
The NFL vs. the New York Times
Good thing
for
Colin
Kaepernick he
isn’t a New
York Times
reporter.
As quarterMAIN
back for the
STREET
San Francisco
By William
49ers,
Mr.
McGurn
Kaepernick
was backed
by NFL Commissioner Roger
Goodell in 2016 when he chose
not to stand during the national anthem. Mr. Goodell
said that while he didn’t necessarily agree with Mr. Kaepernick, “players have a platform, and it’s his right to do
that.” One year and many NFL
game day protests later, Times
executive editor Dean Baquet
has just made clear to his own
employees: There will be no
taking of knees if it embarrasses the Times.
Which puts the Gray Lady
in a pickle. When Mr. Kaepernick began protesting the national anthem, the Times ran
a few opinion pieces but refrained from staking out an
official position. That changed
after Donald Trump weighed
in. At a Friday night rally in
Alabama last month, the president asked: “Wouldn’t you
love to see one of these NFL
owners, when somebody disrespects our flag, to say ‘Get
that son of a bitch off the field
right now?’ ”
In response, the Times
blitzed. A Sept. 24 editorial
called “The Day the Real Patriots Took a Knee” asserted the
president’s remarks about the
flag and players were yet
more evidence of his disregard
for “the legitimate and deeply
felt fears and grievances of
minority Americans.”
It piled on, accusing Mr.
Trump of “implying that players give up their right to free
speech when they put on a
uniform.” For good measure,
it went on to impugn Treasury
secretary Steven Mnuchin for
suggesting “players should
keep their mouths shut in the
workplace.”
We get it: Employers have
no right to restrict their employees’ speech.
But one tiny question: Why
do Times reporters not enjoy
this same right?
Because within three
weeks of blasting those who
believe NFL players have no
First Amendment right to
use the football field to make
political statements, Mr. Baquet issued a memo about
social media warning Times
reporters not to use their
“vibrant presence” on these
platforms to express their
own, uh, deeply felt fears and
grievances.
Mr. Baquet says “the key
points” are as follows:
• “In social media posts,
our journalists must not express partisan opinions, promote political views, endorse
candidates, make offensive
comments or do anything else
that undercuts The Times’s
journalistic reputation.
• “Our journalists should be
especially mindful of appearing to take sides on issues
that The Times is seeking to
cover objectively.
• “These guidelines apply to
everyone in every department
of the newsroom, including
those not involved in coverage
of government and politics.”
In its NFL editorial, the
Times approvingly quoted
New England Patriots owner
Robert Kraft, who defended
his players’ right to “peacefully affect social change and
raise awareness in a manner
they feel is most impactful.”
The paper says pro
football players have
speech rights it denies
to its own reporters.
For its own employees, the
Times has now chosen a different approach.
“We consider all social media activity by our journalists
to come under this policy,”
the memo warned. “While you
may think that your Facebook
page, Twitter feed, Instagram,
Snapchat or other social media accounts are private
zones, separate from your role
at The Times, in fact everything we post or ‘like’ online
is to some degree public. And
everything we do in public is
likely to be associated with
The Times.”
Remember, when NFL players take a knee, they do so in
the uniforms of their employers, in a workplace paid for
by their employers, and before a TV audience provided
by their employers. By contrast, while someone might be
identified on, say, Twitter as
a Times reporter, it’s not a
Times platform. In this sense, a
reporter posting on Facebook
is more akin to Mr. Kaepernick’s appearing at, say, a Black
Lives Matter rally, off hours
and out of uniform.
At a panel discussion at
George Washington University
last Thursday, Mr. Baquet was
blunt about why he’s going all
Mike Ditka on the social media accounts of his employees.
It’s vital, he says, to institutional credibility. He wants to
be able to say of Times coverage that “we’re doing this because it’s journalistically
sound, we’re not doing this
because we have a vendetta or
[because] we’re trying to take
him out, and I can’t do that if
I have 100 people working for
the New York Times sending
inappropriate tweets.”
It’s an eminently sane argument—even if rooted in the
premise that the Times will be
discredited by more honesty
about what its reporters really
think. If the NFL owners decide at their fall meeting this
Tuesday to require players to
stand for the national anthem,
expect Mr. Goodell to emerge
offering a version of the Baquet argument.
To paraphrase Justice Oliver
Wendell Holmes, while everyone has the constitutional
right to free speech, no one
has a constitutional right to
work for the New York Times.
Surely that goes for the NFL
too. So why does the Times believe professional football players have more speech rights
than its own reporters?
Write to mcgurn@wsj.com.
Secessionism’s Dangerous Return
By Walter Russell Mead
S
ecession is back on the
front pages, and that isn’t
good news. Activists are
talking about setting up new
states in Catalonia, Kurdistan,
Scotland and even Biafra—the
predominantly Igbo-speaking
region in southeastern Nigeria
whose attempted secession led
to a bloody civil war from
1967-70.
Not all secessions are alike.
The movements in Catalonia
and Scotland are taking place
within cohesive and consolidated democracies in a peaceful part of the world. Since
the European Union and the
North Atlantic Treaty Organization provide a strong institutional framework, secessionist groups can hope to have it
both ways. They think they
can enjoy all the benefits and
trappings of home rule without losing the prosperity, influence and security that citizens of large, powerful states
enjoy. Much of Europe today
has become a place where
small nations can flourish.
What is going on in Kurdistan, Biafra, the Baluchistan region of Pakistan and Iran, and
other areas of the postcolonial
world is very different—and
presents more challenges to
world peace. The relatively
demure secession movements
of Europe depend on strong
institutions, respected constitutional arrangements, and resilient civil societies. Much of
the postcolonial world is not
so abundantly blessed.
Worse, colonial boundaries
often do not reflect ethnic,
tribal, religious or even geographical realities. The borders of Iraq, Nigeria and
many other states were
drawn by colonial powers
without much regard for the
wishes or needs of the locals.
Partly as a consequence,
many of the postcolonial
states that took shape in
these countries have oscillated between tyranny and
fecklessness, with corruption
the only constant.
Ethnic nationalism is
up. So is competition
between great powers.
It sounds like 1914.
Imperialism and the racism
that accompanied it still shape
our discourse; many African
“tribes” are larger than some
European “nations” and have
just as much linguistic and
cultural heritage in common.
There are approximately 34
million Igbo compared with
seven million Bulgarians, six
million Danes, and two million
Slovenes.
Nevertheless, a wave of secession movements in the developing world would be a
geopolitical and humanitarian
nightmare. South Sudan,
Rwanda, Syria and Myanmar
show what can result when
ethnic and religious identity
politics erupt in full force. As a
result, with some rare exceptions (Eritrea, East Timor,
South Sudan and Bangladesh)
the world has looked askance
at independence and secession
movements in postcolonial
countries.
Western elites have fondly
hoped that modernization—understood as economic development and the spread of democracy—would cause identity
politics and ethno-nationalist
grievances to fade. Yet the history of Europe from the Napoleonic Wars through the aftermath of World War I is the
story of movements for national liberation that grew
more powerful as economic
and social development spread.
The rising middle classes powered nationalist movements
across Europe.
The multinational and
multi-confessional federations
and empires of Europe and the
Middle East were pulled apart
by the centrifugal forces of
modernization.
Genocidal
slaughters, ethnic cleansing
and mass floods of refugees
became common as these conflicts erupted in the 19th and
early 20th centuries. They
flared again late in the 1990s
as the Soviet Union and Yugoslavia imploded. Now, as economic and social development
transform much of the postcolonial world, we are witnessing new movements of ethnic
and religious identity politics
as dangerous as anything Europe saw in the past.
Bitter conflicts of dissolution
can turn particularly violent,
threatening the peace of the
wider world, when the ambitions of rival great powers
align with different factions.
The Balkans became the “tinderbox” of Europe a century
ago not only because various
small nationalities wanted to
pursue feuds, but because great
powers like Russia and Austria
intervened to turn Serbian irredentism into a world war.
What’s worrying today is
that the surge in secessionist
movements and identity politics in the postcolonial world
coincides with rising competition between the great powers. In Syria, Yemen and Iraq
we already see how greatpower rivalries can inflame local quarrels, as outside powers aligned with Sunni, Shiite
Kurdish and other factions
airdrop in the resources and
weapons that escalate limited
conflicts and allow them to
endure.
Rising great-power competition intersecting with a
world-wide surge in identity
politics—the
combination
does not point toward a calm
future. At the end of the Cold
War, many in the West looked
forward to a “posthistorical”
era in which conflict would be
rare. Those predictions look
increasingly forlorn; America
must learn to chart its course
in a grimmer and less forgiving world.
Mr. Mead is a fellow at the
Hudson Institute and a professor of foreign affairs at Bard
College.
When Worlds Collide, Astronomers Watch
By Ray Jayawardhana
A
cosmic cataclysm was
announced Monday—and
astronomers cheered.
Astronomy isn’t like the
other natural sciences. Its
practitioners don’t get to put
their quarry under a microscope or experiment with it.
For centuries we have had to
make do with the feeble light
reaching our telescopes from
remote celestial bodies. Such
light encodes deep insights in
the form of spectral lines,
which betray the compositions, temperatures and motions of cosmic denizens.
That’s how we know what
stars are made of and how fast
galaxies are moving.
The spectrum extends well
beyond the rainbow of colors
visible to human eyes. Over the
past several decades, astronomers have deployed instruments, on the ground and in
space, that can register the full
range of “light”—electromagnetic radiation—from low-frequency radio waves to energetic
gamma rays, revealing a more
colorful and action-packed universe than anyone could have
imagined.
Monday’s announcement
marks the coming-of-age for
multimessenger astronomy. For
the first time, scientists have
detected gravitational waves
from the merger of two neutron stars, while also observing
electromagnetic radiation associated with the event.
New ways of seeing
what happened
130 million years ago.
On Aug. 17, NASA’s Fermi
satellite sensed a burst of
gamma rays at the same time
that detectors on the ground
discerned subtle distortions in
space caused by passing gravitational waves. Over the next
few days, some 70 observatories, terrestrial and orbital,
scrambled to peer at the drama
that unfolded 130 million light-
years away. They took images
of the source in visible and infrared light, as it faded and became redder. Later they also
espied X-ray and radio emissions from it.
The combined data from all
these “eyes” and “ears” left no
doubt that two compact stellar
cinders had been caught in the
final act of spiraling together.
The data also support the
theory that this kind of creative destruction might have
produced the bulk of the precious metals—silver, platinum,
gold—here on Earth.
Thirty years ago, underground detectors registered
two dozen elusive subatomic
particles called neutrinos after
a massive, bloated star exploded as a supernova in a satellite galaxy of the Milky Way.
No neutrinos were seen in the
recent event, because of its
much greater distance.
Nevertheless, the era of
multimessenger astronomy is
here for real. Three major
gravitational-wave detectors in
the U.S. and Europe are now
working in concert, with a
fourth under construction in
Japan. The IceCube Neutrino
Observatory, a network of
thousands of sensors buried
deep in the Antarctic ice, is
ready and waiting. The James
Webb Space Telescope, a larger
successor to the Hubble optimized for infrared radiation, is
set to launch in early 2019.
With a formidable arsenal
of facilities lined up, researchers hope to welcome the trifecta of cosmic messengers
from a single cosmic event in
the near future.
Looking at the universe by
all three means—electromagnetic radiation, gravitational
waves and neutrinos—will
surely reveal a more complete,
and nuanced, view of our surroundings and origins. Which
is why astronomers like me are
looking forward to the next
cosmic armageddon.
Mr. Jayawardhana, an astrophysicist and dean of science
at York University in Toronto, is
author of “Neutrino Hunters.”
BOOKSHELF | By Diane Cole
Selflessness
Under Pressure
Suzanne’s Children
By Anne Nelson
(Simon & Schuster, 318 pages, $26)
‘M
y children are safe while others are threatened.”
That anguished thought gave Belgian heiress
Suzanne Spaak the determination to risk everything to protect Jewish children in Nazi-occupied Paris from
deportation to, and probable death in, concentration camps.
Although absolute numbers are hard to come by, author and
playwright Anne Nelson estimates in her immersive
chronicle, “Suzanne’s Children,” that Spaak and her Resistance colleagues may have helped save hundreds of young
Jewish lives.
At first glance, Spaak’s pampered early life contains little
that would suggest her later capacity for selfless courage.
The beautiful daughter of a prominent Belgian financier, she
had harbored idealistic tendencies as a child, but chose
status when she married into a distinguished Belgian political family. Suzanne’s husband, Claude, a suavely handsome
writer and art connoisseur, became the patron of acclaimed
Belgian surrealist painter René
Magritte. His provocative
works dominated the couple’s
grand Parisian apartment, an
address so prestigious that their
downstairs neighbor was the
celebrated author Colette, who
gave the world “Gigi.” Suzanne
and Claude hobnobbed with the
French writer Jean Cocteau, who
also lived in the neighborhood, and
a then little-known designer named
Christian Dior made the costumes
for a theatrical production that
Claude had organized. To complete the
idyllic picture, the couple doted on their
young daughter and son, whom they fondly nicknamed Pilette and Bazou. Suzanne’s pedigree and social
standing seemed impeccable.
By 1939, however, the real picture had darkened
considerably. Angered by her husband’s self-centeredness and
caddish infidelities, yet fearing the scandal a divorce would
cause, a distraught Suzanne consented to share him in an
awkward ménage à trois with his mistress—a woman who
had once been her best friend and who would, after
Suzanne’s death, become Claude’s second wife. Suzanne was
further unnerved by the increasing likelihood of a coming
war with Nazi Germany. Even her budding involvement with
left-wing political groups seemed futile as the Nazi machine
closed in on Jewish immigrant friends trying to escape
Europe. With little solace to be found from either her personal life or the world around her, she suffered a breakdown.
Ms. Nelson does not tell us what suddenly spurred Spaak
to action—or more likely cannot, since Claude burned her
correspondence and papers after the war—but with the fall
of France and the start of the Nazi occupation, Suzanne
gained new purpose. “What can I do?” became her constant
refrain as she became ever more active in an ever-larger
number of Resistance groups, working with Jews, Catholics
and Protestants as well as communists, Soviet agents and
followers of Free France’s leader, Charles de Gaulle.
An unsung hero of the French Resistance,
Suzanne Spaak risked everything to save
Jewish children from deportation to Auschwitz.
Counting on her innocent demeanor and chic style to
avoid suspicion, Spaak routinely acted as courier, concealing
in her bodice or girdle a delivery of identity documents or
leaflets warning Jews of the next Nazi round-up. Her uppercrust position apparently also deflected doubts as she
employed Jewish refugees as “servants” on their way to
finding safe passage out of Europe. She contributed her own
money to the cause and called upon her wealthy acquaintances for additional funding. She herself provided temporary shelter to Jewish children en route to their new homes.
She was relentless, Ms. Nelson reports, seemingly oblivious to the risks involved, especially to herself and, whether
or not she admitted it, to members of her own family. Sometimes with her adolescent daughter Pilette at her side, she
would help prepare forged identity papers and ration cards
that would allow Jewish children to survive under new
guises. More astonishing was her method for identifying
possible homes for these children. Suzanne, a lapsed Catholic, would take the train to a small town and, while taking
confession at the local church, would matter-of-factly ask
the priest if he knew families that might take in endangered
children. Most audacious of all was her role coordinating an
elaborate operation known as “le kidnapping.” Sixty-three
Jewish children whose parents had already been deported
or disappeared were rescued from the barely survivable
orphanages where they were being kept in advance of their
own transport to Nazi death camps.
That rescue took place in February 1943. Over the next
several months the Gestapo hunted her, interrogating and
imprisoning her siblings, in-laws, and children, before finally
arresting her that November. Suzanne revealed little; during
her months in solitary confinement in Fresnes prison—
described by Ms. Nelson as a “factory of despair”—she
remained noble to the end. To keep herself busy, she unraveled the threads of her blanket and used toothpicks to knit a
tie for her son; for her daughter, she created a doll from
strands of her hair. Yet on August 12, 1944, amid the pandemonium just before the liberation of Paris, Spaak was taken
to the prison courtyard and executed. In 1985, Israel’s Holocaust memorial, Yad Vashem, honored her as one of the
Righteous Among the Nations.
By placing Spaak’s singular story in the broader context
of the occupation, “Suzanne’s Children” vividly dramatizes
the stakes of acting morally in a time of brutality. Ms.
Nelson’s exhaustive research reveals in chilling detail the
gruesome methods with which the Nazis nearly succeeded
in ridding France of its Jews, and exposes the easy
complicity with which too many French aided them in that
goal. “Suzanne’s Children” would be a richer work if Ms.
Nelson had explored more deeply and with greater nuance
the interior lives of Suzanne, Claude and their circle; some
of these figures come across as two-dimensional, while
others are mere cyphers. But if Suzanne’s personality
remains elusive, her actions do not. Among the sayings she
scratched on the walls of her fetid cell were these words
from Socrates: “My enemies can kill me, but they cannot
harm me.” Hers is a legacy worth reading about.
Ms. Cole is the author of the memoir “After Great Pain:
A New Life Emerges.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
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THE WALL STREET JOURNAL.
A16 | Tuesday, October 17, 2017
OPINION
A
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
Assault on the Kurds
The ‘Science’ of Implicit Bias Knows No Limit
central tenet of the Trump foreign pol- tion’s army into a fighting force capable of
icy, a work in progress, has been that driving Islamic State out of Iraq’s major citthe U.S. would rebuild its relationship ies, with the help of the Peshmerga.
with America’s allies. That
Possibly the phrase “no
Defeat for the U.S.
commitment is being put to
good deed goes unpunished”
the test in northern Iraq.
in the Middle East.
allies in northern Iraq originated
On Monday Iraq’s army, asHaving taken back Mosul from
is a victory for Iran.
sisted by Iranian forces,
Islamic State, Mr. Abadi now
launched a major assault on
wants to drive the Kurds back
the Kurds in the northern Iraqi
into their northern Iraqi
city of Kirkuk. Across the length of America’s homeland. But the strategic details of this atrecent history with Iraq, we have had no more tack on the Kurds are important. Iraq’s offenreliable ally than Iraq’s Kurds and their fighting sive includes Iran. According to the Washingforce, the Peshmerga.
ton-based Institute for the Study of War,
So far the Trump Administration has said lit- Iranian-backed militias and the 9th Iraqi Artle about the attack on the Kurds. “We’re not mored Division moved toward Kirkuk last week
taking sides, but we don’t like the fact that to support the Iraqi army.
they’re clashing,” President Trump told reportThe Abadi government in Baghdad is under
ers at the White House Monday. “We’ve had, for constant pressure from Shiite Iran to align itself
many years, a very good relationship with the against the interest of Iraq’s Sunni populations
Kurds, as you know. And we’ve also been on the in the north and west. It follows that after Iraq’s
side of Iraq, even though we should have never progress on the battlefield against Islamic
been in there in the first place. But we’re not State, Iran would encourage the Iraqis to drive
taking sides in that battle.”
the Kurds out of Kirkuk.
But if the U.S. allows one of its most visible
Notice this is all happening within days of
allies to be defeated in the Middle East, make President Trump decertifying the Iran nuclear
no mistake: Other allies in the region will notice deal, based in part on the assumption that Euand start to recalculate their relationship with rope will support U.S. efforts to resist Iran’s balthe Trump Administration.
listic-missile program and its penetrations
The Iraqi Kurds, to be sure, have contributed across the Middle East. But what will the Euroto their current plight. Kurdish President peans or our allies in the Middle East conclude
Masoud Barzani went forward with a needless if we abandon one of our oldest regional allies,
independence referendum last month, despite the Iraqi Kurds?
pressure from the U.S. not to hold the vote. The
The U.S. no doubt has lost much of the politipro-forma vote gave the Baghdad government cal leverage it had before the Obama Adminisa pretext to play the nationalist card and retake tration pulled out of Iraq in 2011. But abandonKirkuk.
ing the Kurds to an Iraq-Iran Shiite alliance
Kirkuk is a multi-ethnic city that lies just would only deepen U.S. losses.
south of Iraq’s Kurdistan, an autonomous region
Before Iraq and the Kurds go to war, the U.S.
whose borders abut Iran and Turkey. The Kirkuk could insist that Iraq reaffirm the autonomy of
region is also rich in oil. The Kurds gained con- Iraqi Kurdistan and also that it work out an
trol of Kirkuk in 2014 after Iraq’s army famously agreement to share revenue from the region’s
fled under attack from Islamic State, which oil reserves. The alternative to such a modus viseized control of Mosul in June that year.
vendi for Prime Minister Abadi is a capable
After the Iraqi forces abandoned the re- Kurdish fighting force in a state of permanent
gion, the Peshmerga became the primary rea- insurrection.
son that Islamic State was never able to conThe U.S. owes a debt to the Kurds. Abandonsolidate its control of northern Iraq. ing them now would damage America’s credibilArguably, the Kurds, backed by U.S. air power, ity, and not least Mr. Trump’s ability to enlist
saved Iraq by giving Iraqi Prime Minister allies against Iran’s expansion across the Middle
Haider al-Abadi time to reconstitute his na- East. The assault on Kirkuk matters.
O
Austria’s Not So Scary Right Turn
ne day Europe will be able to hold an
election without a freak-out over a
feared return of the far right. That day
isn’t here. So Austria’s election on Sunday, in
which voters rejected a center-left governing cartel in favor of a resurgent center-right, has the
Continent rushing for the smelling salts.
Sebastian Kurz of the center-right Austrian
People’s Party (ÖVP) placed first in the parliamentary vote, with early results pegging him
at 32%. The 31-year-old has served as foreign
minister in a coalition government led by the
center-left Social Democrats. Mr. Kurz abandoned that centrist coalition and positioned his
party further to the right, especially on immigration after the surge of Middle Eastern and
African migrants into Europe.
His strategy worked, especially in pulling
voters from the far-right Freedom Party (FPÖ),
the outfit that really gives Europeans palpitations. Leader Heinz-Christian Strache has tried
hard but not always credibly to shed the FPÖ’s
reputation as a political haven for xenophobes
and Nazi sympathizers. At the start of the year
it polled at 35%, after its candidate for the ceremonial presidency won 47% last year. But on
Sunday its share fell to about 20%
Mr. Kurz reversed the far-right’s march by
R
co-opting some of its main policies. Those include tighter bars on asylum-seekers and intraEuropean Union migrants claiming social benefits, and a push to shut off the flow of migrants
across the Mediterranean by returning most to
refugee camps in North Africa. He added an economic platform of tax-rate cuts, especially on
individual income to below 40% and a new focus
on business-friendliness.
Some of our media friends present this as a
resurgence of an ugly far-right party, and Mr.
Kurz is likely to form a coalition with the FPÖ.
But the FPÖ already has done a turn in a governing coalition, from 2000-2005, and it ended
badly amid divisions about economic policy and
leadership. The lesson was that voters care
about results, and an electorate supporting a
fringe party out of frustration won’t blithely
follow that party into an abyss.
Sunday’s result confirms that conclusion, as
voters came home to a centrist party that now
aims to compete for votes rather than taking
them for granted as part of an ideologically
neutered left-right coalition. That should be
good news for worried European politicians.
Voters will give mainstream parties plenty of
opportunity to reform themselves, but the parties have to listen to the voters.
Liberals Embrace ‘Dark Money’
emember when Democrats and the like Chuck Schumer demanding disclosure of all
press corps complained about “dark political donations.
money” and wanted to rewrite the First
Citizens United protected the broadcast of
Amendment to ban certain
a movie opposing Hillary ClinFusion GPS rolls out
campaign contributions? Well,
ton—obvious political speech.
well. Now the progressive opBut the House wants to know
a
novel
excuse
to
block
eratives at Fusion GPS are inwho paid Fusion to dig up dirt
a House subpoena.
voking free-speech rights to
on Mr. Trump and whether
block the House Intelligence
any of that money or intelliCommittee’s probe of the infagence came from foreign
mous Steele dossier.
sources. The First Amendment doesn’t protect
Fusion GPS is the opposition research firm attempts by foreign governments or agents to
behind the Steele dossier claiming that Donald influence U.S. elections.
Trump colluded with Russians to win the 2016
Foreign campaign contributions are banned
election. Congress is investigating Russian in- under U.S. law, and in the 1990s Congress confluence, and former British spook Christopher ducted extensive investigations into Chinese
Steele relied on Russian sources. The dossier and other donations to the Clinton campaign.
is clearly of interest, perhaps even a Rosetta No one claimed the Riady family’s donations
Stone in the probe.
were protected political speech because they fiYet Fusion chief Glenn Simpson won’t coop- nanced Bill Clinton’s re-election.
erate, and on Monday the company’s lawyers
Fusion by its own admission has worked in
sent a letter to the House Intelligence Commit- the past on a lobby campaign for a Russian comtee refusing to comply with subpoenas for doc- pany with ties to the Kremlin. Investigators
uments and testimony related to the dossier. want to know if those clients or other foreign
The letter claims the subpoenas “violate the actors had anything to do with the commissionFirst Amendment rights of our clients and their ing or production of the Steele dossier.
clients, and would chill any American running
The press corps is cheering investigations
for office . . . from conducting confidential op- into whether the Russians worked with a Trump
position research in an election.”
campaign to win the election—and we want
Hello? Mr. Simpson must be having a good those answers too. But it’s also important to
laugh at that one. Surely he knows that his know if other Americans worked—wittingly or
many Democratic clients have spent most of the not—with Russian actors to collect and distriblast decade moaning about “dark money” dona- ute accusations against Mr. Trump.
tions in politics. Hillary Clinton and Bernie
Fusion can dig up all the dirt it wants on cliSanders proposed rewriting the First Amend- ents and leak it to its media pals. That is its
ment to overturn the Supreme Court’s Citizens business model. But the company has no constiUnited ruling so government could regulate po- tutional right to avoid a probe into foreign inlitical speech. Fusion must also not have read fluence. The House’s next move should be a vote
the avalanche of press releases from Democrats for contempt of Congress.
Kudos to Heather Mac Donald for
exposing and fighting “The False ‘Science’ of Implicit Bias” (op-ed, Oct.
10), but implicit-bias stakes are much
too high to let a few inconvenient
facts about tainted research derail
progressive remediation. Implicit bias
provides the intellectual framework
for addressing disparate impact—in
bank lending, hiring, wages, college
admissions, police shootings, incarcerations, etc.—that can only be the result of institutionalized racism. Disparate-impact analysis then is the
engine that drives regulations and
policies forward toward equal outcomes, the final destination desired
by progressives. The beauty of an implicit-bias framework is that deniers
such as Ms. Mac Donald who expose
flawed research and offer other credible explanations for unequal outcomes are attacked as bigots and prevented from “spewing their hate” on
college campuses where tomorrow’s
scientists are molded.
Police shootings of young, black
men are tragic, but there are many
more young, black men who are shot
and killed by young, black men. One
assumes that black men are not
shooting each other because of skin
color and implicit bias. Implicit-bias
“science” based on biased or poorly
conducted research, feeds a postmodernist agenda of democratic socialism.
With progressive political leaders, the
press and universities able to brand
implicit-bias deniers as racists, bigots,
deplorables and worse, the false science may be settled.
SCOTT PIERCE
Hendersonville, N.C.
Ms. Mac Donald equates the flawed
implicit-association test with implicit
bias generally. We should recognize
that not everyone in a race has the
same “cultural values, family structure, interests or abilities.” In fact,
believing the opposite is the literal
definition of racism. While I wholeheartedly agree that “the main obstacles to racial equality now lie not in
bias but in culture and behavior,” this
doesn’t mean that we shouldn’t address the subconscious assumption
that people will act the same as others with whom they share characteristics.
TYLER HESS
Ashburn, Va.
Many years ago George Orwell
shocked the world by inventing
“thoughtcrime” as a tool of totalitarian tyranny. Implicit bias takes Orwell
one step further: Now we have unconscious thought crimes.
EM. PROF. JOHN STADDON
Duke University
Durham, N.C.
Those who desperately seek to
prove implicit bias as the cause of
black disparity have a hard time explaining the economic and academic
success of Asians in America. Are
they not also people of “color,” or
does success disqualify them? An implicit bias appears to be preventing
social scientists from seeing black, fatherless households as a major cause
of black economic and academic disparity.
ANTHONY JERIC
Hendersonville, N.C.
China: A Company Disguised as a Country
While we appreciate the history
lesson offered by Bill Lane (“Lessons
from the Sorry History of Steel Protectionism,” op-ed, Oct. 11), the challenges the U.S. steel industry faces today bear little resemblance to those
of the past. Today’s challenge is the
emergence of China as the world’s top
steel producer and exporter. China
didn’t achieve this position through
market-based mechanisms but by
having the government own and operate its steel industry. China’s statesponsored steel industry has fueled
production overcapacity that is
weighing down steelmakers across
the globe. Last year China produced
more steel than the next 48 steel-producing nations combined.
The Chinese government is a company disguised as a country engaged
in economic warfare. The existing
rules of international trade aren’t
equipped to deal with this situation
or the overcapacity problem it has
created. The administration’s current
investigation into steel imports is
looking at whether they threaten national security. Nearly every military
platform and weapons system is dependent on American-made steel. If
unfairly traded imports continue to
threaten the health of U.S. steelmakers, it will compromise the domestic
industry’s ability to be reliable suppliers of steel for defense purposes. In a
time of crisis, do we really want to
rely on countries like China and Russia to provide steel for our national
defense?
George Washington and Alexander
Hamilton imposed tariffs to build our
country’s manufacturing base knowing our national security would be enhanced by producing our own goods
for our military. President Trump understands this, too, and the Trump
administration is right to consider
tariffs or import quotas in response.
JOHN FERRIOLA
Chairman and CEO, Nucor Corp.
Charlotte, N.C.
Irrationality Explains Much About Economies
Regarding David Henderson’s “This
Year’s Nobel Economist Makes Sense
of Irrationality” (op-ed, Oct. 10): I find
it fascinating that the Nobel committee and a majority of modern economists are so surprised that irrationality needs to be included in economic
studies, and that irrationality doesn’t
fit into the mathematical models of
most economic decisions. Ludwig von
Mises published “Human Action” in
1949. The basic premise of his theory
is that “self-interest” (whether rational or irrational) motivates economic
No Indulgence for the Very
Progressive Mr. Weinstein
decisions. Von Mises spends a fair
amount of time illuminating the fact
that a mathematical approach (the basis of the “econ” man) is a fallacy. He
further shows that most political action is merely intervention into the
economic system generally based on
cultural traditions and mores, no matter how rational or irrational.
It is no mystery that Richard H.
Thaler equivocates on the concept of
price gouging if possibly not well
steeped in the concepts presented by
von Mises. Although price gouging is
economically rational, it doesn’t fit in
with our cultural traditions and mores. The real question is what is the
effect of the elimination of price
gouging and are we as a society willing in the long run to accept the economic outcomes (both positive and
negative)? How does such an action
affect the government coffers and the
individuals impacted by that action in
the long run?
Kudos to Mr. Thaler in spending his
$1.1 million prize money “as irrationally as possible.”
LEE BORTON
Williamsburg, Va.
Regarding your editorial “Weinstein’s Progressive Absolution” (Oct.
7): It is not a big deal that Harvey
Weinstein is giving a few thousand
dollars to various Democratic candidates. It is par for the course that
rich people do this. What is more disturbing is the comment about interns
and scripts. Our democracy is being
subverted if Hollywood is in collusion
with the Democratic Party to push
scripts that only align with the party
The one issue I have with the beplatform. Perhaps Special Counsel
havioral approach is that it judges irRobert Mueller should focus on that
rational behavior after the fact.
kind of subversion of our democratic
ANDREW J. SHERBO, PH.D., CFP
processes.
University of Denver
JAMES PHELAN
Cedar Knolls, N.J.
Why haven’t any liberal elites
stepped forward and labeled Harvey
Weinstein’s behavior “deplorable”?
ANDREW BLEKE
Atlanta
Pepper ...
And Salt
THE WALL STREET JOURNAL
Regarding the Democrats seeking
distance from Harvey Weinstein:
Someone should remind them that
Martin Luther put an end to paying
for indulgences centuries ago.
MAUREEN M. HORAN
Lewisberry, Pa.
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THE WALL STREET JOURNAL.
Tuesday, October 17, 2017 | A17
OPINION
The Citizens United Disaster That Wasn’t
By Floyd Abrams
W
hen the Supreme
Court announced its
2010 decision in Citizens United v. Federal
Election Commission,
the public condemnation from certain quarters was fierce. The notion
that a corporation would spend
large sums of money to support or
denounce a political candidate
struck many Americans as deeply
troubling. Some saw the court’s 5-4
ruling, which held that corporate
political spending is protected by
the First Amendment, as constituting a grave threat to the democratic
fabric of society.
Critics warned that a flood
of corporate money would
irreparably taint politics.
No such thing happened.
“Starting today, corporations
with large war chests to deploy on
electioneering may find democratically elected bodies becoming
much more attuned to their interests,” Justice John Paul Stevens
wrote in a 90-page dissenting
opinion. He retired from the Supreme Court at the end of that
term and later suggested a constitutional amendment to overturn
the ruling.
Many of Citizens United’s harshest
critics imagined a nation controlled
by multibillion-dollar corporations
that would dictate business-friendly
legislation to paid-for lawmakers. A
New York Times editorial predicted
that the ruling would “thrust politics back to the robber-baron era of
the 19th century” by allowing “corporations to use their vast treasuries to overwhelm elections.” The
Washington Post warned that “corporate money, never lacking in the
American political process, may
now overwhelm both the contributions of individuals and the faith
they may harbor in their democracy.” The San Francisco Chronicle
warned that “voters should prepare
for the worst: cash-drenched elections presided over by free-spending corporations.”
Since those predictions, two
presidential and four congressional
elections have come and gone.
There’s now solid data, filed with
the Federal Election Commission,
showing how much money corporations have spent in recent elections. It turns out the apocalyptic
forecasts were not just inaccurate
but utterly insupportable.
It is true that in the wake of Citizens United many groups sprang
up that are permitted to spend unlimited sums supporting or opposing candidates and issues. These
so-called super PACs have proved
themselves a political force. But the
money they have spent since 2010
has not come primarily—or even
mostly—from corporations.
Super PACs across the political
spectrum raised $1.8 billion between
Jan. 1, 2015, and Dec. 31, 2016, according to data analyzed by the
Center for Responsive Politics. Of
that, $1.04 billion came from individual donors and $242 million from
Big Spenders
Top 20 donors to Super PACs, 2015-16
1. Thomas Steyer
$89,544,744
11. Service
Employees
International
Union
$23,274,845
2. Sheldon G. and
Miriam O. Adelson
$77,900,000
12. Robert L.
Mercer
$22,551,000
3. Donald S.
Sussman
$38,645,000
13. Senate
Leadership Fund
$22,476,800
4. Fred Eychaner
$35,250,000
14. One Nation
$21,700,000
5. NextGen
Climate Action
$32,556,885
15. Laborers Union
$21,530,385
6. Priorities USA
Action
$26,391,578
16. Republican
Governors
Association
$20,725,000
7. James H. and
Marilyn Simons
$25,025,000
17. Dustin
Moskovitz and
Cari Tuna
$19,915,000
8. Paul E. Singer
$24,095,153
18. Carpenters
and Joiners Union
$19,507,737
9. National
Education
Association
$23,773,966
19. George Soros
$19,239,693
10. Michael R.
Bloomberg
$23,561,624
20. Richard
Uihlein
$19,128,500
Source: Center for Responsive Politics
unions, trade associations, politically
active nonprofits and other organizations. Only $85 million was contributed by business corporations.
The table nearby shows the top 20
donors. Among the Top 40 contributors to super PACs during the 2016
election cycle were eight unions and
only one corporation.
These numbers do not include
donations to campaigns from corporate political action committees.
THE WALL STREET JOURNAL
That money comes not from the
corporate treasury but from people
employed by the company or otherwise connected to it. In any event,
corporate PAC donations are on the
small side compared with the numbers above—$1.9 million to presidential candidates in 2008 (before
Citizens United), $855,348 in 2012
and $942,116 in 2016.
The data suggest two conclusions. The first was summarized by
Brooklyn Law School Professor Joel
Gora after the 2012 election: “The
predicted wave of corporate financial political intervention never materialized. Of all of the super PAC
independent expenditure spending
that escalated in the 2012 election,
very little of it came from corporate contributions.” That remained
true in 2016 and probably will into
the foreseeable future.
The second is that corporations
remain conservative—with a small
“c.” Fear of public disapproval limits their appetite for potential controversy, so they do their best to
steer clear of high-profile political
entanglements. A comment often
attributed to Michael Jordan captures this attitude: “Republicans
buy sneakers, too.” The unwillingness of large corporations to offend
their actual or desired customers is
difficult to overstate.
Despite the bombastic rhetoric
and dire predictions, corporations
and their vast treasuries have not
dominated elections post-Citizens
United. In fact, corporations have
donated a comparatively small percentage of the money spent in political campaigns since 2010. It
would be nice if those who expected a darker world would acknowledge that fact.
Mr. Abrams represented Sen.
Mitch McConnell in the Citizens
United case and participated in
oral argument in the Supreme
Court. An extended version of this
article will appear as a chapter in
“The Free Speech Century,” to be
published next year by Oxford University Press.
Behold the New Emperor of China
By Graham T. Allison
T
he Chinese Communist Party’s
19th Party Congress will convene Wednesday to select
leaders for the next generation. Few
events will have greater impact on
the shape of world politics.
The script for the Party Congress
hasn’t been revealed, but I am betting that Xi Jinping will not only be
“re-elected” to a second five-year
term as the party’s general secretary
and China’s president, but also that
he will effectively be crowned China’s
21st-century emperor.
Every member of the seven-man
Politburo Standing Committee will
be a reliable Xi loyalist. Among them
will be Mr. Xi’s closest associate,
Wang Qishan, who spearheaded Mr.
Xi’s anticorruption inquisition. That
campaign rewrote the rules for doing business in China and restored a
sense of fear (of jail) among party
cadres and the moneyed class.
Custom requires Chinese leaders
to retire by 68, so the 69-year-old
Mr. Wang’s continued place on the
committee—along with the conspicuous lack of any visible successor to
Mr. Xi—will set the stage for Mr. Xi
to remain China’s leader for as long
as he chooses. As this new reality
sinks in, Americans will ask: Who is
Xi Jinping? For a start, let me offer
five tweet-sized points.
First, he will increasingly be recognized as the most powerful leader
of China since Mao Zedong. Mr. Xi is
overshadowing even Deng Xiaoping,
who buried Soviet-style economics
and replaced it with the party-led
market capitalism that has produced
three decades of double-digit economic growth.
Second, Mr. Xi is the most ambitious leader on the international
stage today. Long before Donald
Trump pledged to “make America
great again,” Mr. Xi declared his intention to do the same for China. His
2012 banner stated his vision for the
“Chinese Dream”: “the great rejuvenation of the Chinese nation.” To
that end, he’s undertaken four revolutions: turning China’s export-led
economy into a world leader in innovation and high-value manufacturing,
fueled by the world’s largest consumer middle class, while maintaining economic growth above 6.5%; reorganizing and rebuilding China’s
military so that it can, as Mr. Xi says,
“fight and win” against a modern adversary (such as the U.S.); reviving
nationalism and pride in the restoration of a Great China; and, most critically, revitalizing the party and reestablishing its authority. Any one of
these initiatives would overwhelm
most heads of state. Mr. Xi is managing all four at once.
Xi Jinping is the most
powerful leader since Mao,
and he is set to hold power
for as long as he wants.
Third, he is the most surprising
leader on the international stage today. In a field that includes Vladimir
Putin, Kim Jong Un and Donald
Trump, this claim may seem exaggerated. But recall the conditions in 2012,
when Mr. Xi was appointed to succeed
Hu Jintao. Like Mr. Hu, Mr. Xi was expected to be a bland figurehead and
technocratic spokesman of a nine-man
collective leadership. The skill, speed
and determination with which he has
effected a regime transformation to
charismatic one-man rule is stunning.
Never before has a nation risen so far,
so fast, on so many dimensions as
China has over the past generation.
The same could be said of Mr. Xi,
who went from a politically exiled
peasant living in a cave to “Chairman
of Everything.”
Moreover, his choice to upend
Deng’s policy—“hide China’s capabilities and bide our time”—has blindsided the international community.
From China’s new Asian Infrastructure Investment Bank, which has
overshadowed the World Bank, to his
massive geoeconomic master plan
known as “One Belt, One Road” financing 900 infrastructure and business projects at a cost exceeding $1.4
trillion (the equivalent of 12 Marshall
Plans), he is nothing if not audacious.
As the U.S. has retreated from its traditional role on the world stage, Mr.
Xi has moved swiftly to fill the void,
shocking the Davos elite in 2017
when he proclaimed himself, to little
dissent, champion of the new global
liberal economic order.
Fourth, Mr. Xi is the most effective
global leader today. Assess China’s
performance over his first five years:
revitalizing a party that many Western analysts believed would soon fall
to the “inevitable” march of democracy, maintaining robust economic
growth when so many expected crisis
and collapse, and asserting China’s
power abroad against all competitors,
getting his way from the South China
Sea to the Himalayas.
Finally, of all the leaders on the international stage, Mr. Xi will be the
most consequential. This is not simply because he rules a nation of 1.4
billion people and an economy that
overtook the U.S. in 2014 to become
the largest in the world (measured by
purchasing power parity, which both
the International Monetary Fund and
CIA regard as the single best yardstick). By the end of his second term,
China’s economy is on pace to be 40%
larger than America’s.
At that point he will have firmly
established Beijing as the capital and
Xi Jinping as the man to which a
world looking for growth and stability turns first. China will have been
restored to its position as the “sun”
around which the nations of Asia orbit—as they did in earlier millennia.
And Mr. Xi will have become the
modern emperor of China.
Mr. Allison, a professor of government at Harvard, is author of “Destined for War: Can America and
China Escape Thucydides’s Trap?”
(Houghton Mifflin Harcourt, 2017).
How to Make a Good Tax-Reform Plan Even Better
By Edward Lazear
T
he “Big Six” tax framework announced in September will be
Congress’s primary focus for
the rest of the year. The plan proposes
substantial cuts to personal and business tax rates and immediate expensing of capital investments for business. For the plan to pass Congress,
its backers must provide affirmative
answers to two key questions: Will it
boost the economy enough to cover
most of the revenue cost? And will it
help the middle class? The answer to
both questions is yes, although some
key changes can make achieving these
goals likelier.
The Senate Republican budget
blueprint allows $1.5 trillion in tax
cuts over 10 years. Many lawmakers
are rightly concerned about the deficit implications. Tax cuts rarely pay
for themselves, but positive revenue
effects are produced primarily
through cuts in business taxes like
those in the proposed plan. Under
reasonable scenarios, much of the
lost revenue can be made up by
added growth.
A sensible target for growth-induced revenue is $1 trillion. Current
tax law will likely be revised each year
to extend expiring tax cuts even without tax reform. The Joint Tax Committee scores those extensions at
about $500 billion, so the shortfall,
net of what would occur anyway, is $1
trillion, not $1.5 trillion.
Growth doesn’t need to increase
astronomically to get to $1 trillion.
Suppose the tax plan boosted growth
by 4% over 10 years, a roughly 0.4point increase in annual growth. I estimate that would result in $968 billion in additional revenue. GDP
growth over the past three years averaged 2.2%. My estimate calls for a
bump to 2.6%. If one assumes a rate as
low as 1.8%, then 2.2% growth would
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generate about the same amount of
additional revenue.
Plans similar to the Big Six proposal have been scored in the past. In
2005 the Advisory Panel on Federal
Tax Reform (of which I was a member) proposed a plan that would create about 5% additional growth.
When I served in the White House as
chairman of the Council of Economic
Advisers in 2006-09, the Treasury
Department estimated that going to
full expensing—in which businesses
can deduct immediately all investment expenditures from taxable earnings—would produce the same 5%
growth.
The Big Six plan has a combination
of full expensing and business rate
cuts that make it look similar to these
plans, with one major distinction. In
the Big Six plan, full expensing is
temporary. It expires after five years,
which has the primary effect of moving investment forward as companies
seek to take advantage of the more
favorable tax treatment. It also
means less investment during the
second five years, when unlimited expensing vanishes. Experts disagree on
how much growth tax cuts will produce, but there is general agreement
that permanent expensing would produce more-sustained growth. It
would also imply an additional reduction in tax revenue.
One way to offset that would be to
use a more targeted approach to reducing the taxes paid by small and
midsize businesses. The Big Six propose to reduce the rate on passthrough income to 25%. Instead, small
and medium-size companies could be
The GOP framework would
boost growth and help the
middle class—even more
with one simple tweak.
given tax reductions that are more
pro-growth and cost less. Currently,
businesses are allowed to expense immediately up to $2 million in qualifying income. That cap could be raised
permanently, say, to $5 million for
non-C-corp business. (C-corps, companies that are taxed separately from
their owners, already benefit from the
proposed plan because their top rate
would fall to 20% from 35%.)
Notable & Quotable: Welcome
House Majority Leader Kevin
McCarthy at a Sept. 21 naturalization
ceremony in Bakersfield, Calif.:
Every one of you has a story—an
American story now. You come from
many countries—but today the Pilgrims are your ancestors. You’ve
known many leaders—but today
George Washington is your Founding
Father. You’ve experienced many
hardships—but today Valley Forge is
your winter.
The Declaration is your inspiration
and the Constitution is your inheritance. Lincoln is your liberator. . . .
The GIs of D-Day are your heroes.
Martin Luther King Jr. spoke of your
dreams. The moon bears your flag.
And our future is your future.
You are adopted sons and daughters of America with every right, every privilege, every duty and every
national memory of those blessed
with citizenship by birth. I pray that
as you grow into your place as a citizen, that what you would feel more
than anything else is gratitude.
This approach would cost less and
concentrate tax cuts where they would
have the greatest effect on growth,
namely small and midsize businesses.
There’s an additional benefit: Since
much pass-through income is clustered at the top of the earnings distribution, the $5 million limit would direct more of the benefits to the middle
class.
The Big Six plan includes direct
tax cuts for middle-class earners, but
the reduction in business taxation
has been criticized as benefiting the
wealthy. In the short run that is likely
accurate, but as time progresses a
major fraction of those benefits will
accrue to the middle class, for two
reasons.
First, corporate rate cuts attract
more foreign capital and domestic investment, which increases demand
for labor, and hence wages. Second,
the growth effects are primarily associated with increased productivity, as
opposed to more hours of work. Productivity means greater output per
worker, which produces higher average wages. I estimate this would
amount to between $1,800 and
$2,400 annually per household once
the full growth effects are realized. A
substantial share of this increase
would be enjoyed by middle-class
households.
Nothing like the Big Six plan has
ever been implemented, so it is impossible to give precise estimates of its
effects. Still, lawmakers should support the effort—especially with the
modifications I suggest—because it is
conceptually sound, would boost the
economy without breaking the budget,
and would help the middle class.
Mr. Lazear, who was chairman of
the President’s Council of Economic
Advisers (2006-09), is a professor
at Stanford University’s Graduate
School of Business and a Hoover Institution fellow.
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BUSINESS & FINANCE
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P&G Apparently Beat Peltz by a Sliver
Expensive proxy fight
is now headed to a
weekslong recount
to determine outcome
BY DAVID BENOIT
AND SHARON TERLEP
Procter & Gamble Co. said
it beat Nelson Peltz by 6.15
million votes, only about 0.2%
of its shares outstanding, a
slim difference that is now
headed to a weekslong recount
to determine the final outcome of the most-expensive
proxy fight in history.
The consumer giant had announced at its annual meeting
in Cincinnati last week that its
preliminary tally of votes
showed the 11 board nominees
were elected. The announcement surprised the activist
camp whose own tally seemed
too close to call.
The company hadn’t released the actual preliminary
tally until Monday, when it
disclosed in a securities filing that Mr. Peltz received
973 million shares and that
the P&G director with the
least number of votes, Ernesto Zedillo, won 979.2 million. Mr. Peltz’s campaign
had sought to replace Mr.
Zedillo, the former president
of Mexico, though the activist investor pledged to attempt to add him back if Mr.
Peltz won.
Mr. Zedillo got 48.9% of the
shares voted at the meeting,
while Mr. Peltz received 48.6%
of the vote, according to P&G’s
preliminary tally.
“Trian continues to believe
that the election is too close
to call,” Mr. Peltz’s Trian
Fund Management said on
Monday, adding that the initial
results are based “on estimates and incomplete information.” For its tally, the com-
pany had to estimate votes by
individuals that supported Mr.
Peltz and cast their ballots directly to his fund.
P&G said Monday that it
could take several weeks for
an independent inspector to
confirm the results. “P&G
shareholders have spoken,” a
company spokesman said.
“Our focus continues to be on
delivering the results shareholders expect of us and we
expect of ourselves—and we’re
on the right track.”
“We are confident in the
conclusion that we reached
last week,” he said.
Trian said last week it
Edward Jones Joins the Trillion-Dollar Club
Edward Jones, the
closely held St.
Louis-based brokerage
firm, this year surpassed
$1 trillion in assets under
management, joining an
elite club of large firms
that serve customers
around the nation.
The firm is seeking to
boost growth by
entering new markets.
Client assets of leading U.S.-based wealth-management firms*
$10 trillion
Charles Schwab
Wells Fargo
Fidelity
6
Merrill Lynch
4
Morgan Stanley
2
Edward Jones
0
2008
’09
’10
’11
Number of financial advisers†
’12
’13
’14
’15
’16
Number of Edward Jones locations
12,750
15,795
Edward
Jones
15,777
14,954
Morgan
Stanley
Merrill
Lynch
14,564
Wells Fargo
Advisors
12,500
6,915
UBS
*Schwab and Fidelity data don’t include custody or clearing operations.
†All figures are for third quarter except Morgan Stanley and UBS, which are for second quarter.
Sources: Aite Group (assets); the companies (advisers); Edward Jones (locations)
12,250
12,000
11,750
1Q 2016
2Q
3Q
4Q
1Q ’17
2Q
3Q
THE WALL STREET JOURNAL.
The regional broker’s assets now top $1 trillion as it competes in recruiting against Wall Street titans, sets sights on urban centers. B10
Colony in Talks to Buy Weinstein Co.
Colony Capital is in talks to
buy the assets of Weinstein
Co., the two companies said
Monday, a move that could put
studio co-chairman Bob WeinBy Ben Fritz,
Cara Lombardo
and Erich Schwartzel
stein at odds with the other
board members and owners as
they try to contain the fallout
from sexual-assault allegations
against Harvey Weinstein,
Bob’s brother.
After a frenetic weekend of
negotiations, Colony, the private-equity arm of investment
firm Colony NorthStar Inc.,
now has an exclusive negotiat-
ing window to buy “all or a
significant portion” of the assets of Weinstein Co., the companies said. As part of the
agreement, Colony also has
given the studio behind “The
Imitation Game” and “The
King’s Speech” an undisclosed
amount of cash.
The news comes just three
days after Bob Weinstein issued a statement saying: “It is
untrue that the company or
board is exploring a sale.” Mr.
Weinstein’s statement came in
response to a Wall Street
Journal article that the company intended to do so.
Another board member,
Tarak Ben Amarr, announced
the Colony agreement Monday.
“There are a lot of moving
pieces right now that need to
responsibly come to rest and
my only course of action at
this time is to preserve and
protect the current stakeholders, talent, shareholders, creditors including potential claimants and employees,” Bob
Weinstein said in a statement.
“And going forward I reserve
my comments on any aspects
outside of this until the pieces
of this puzzle are more clearly
defined.”
Weinstein Co. has been in
chaos after former co-chairman Harvey Weinstein was accused by more than a dozen
women of sexual misconduct
and assault. In the wake of
preliminary proxy results is all
I had,” P&G Chief Executive
David Taylor said when asked
last week about Trian’s contention that he declared victory too soon. Mr. Taylor won
re-election with 1.93 billion
shares voted for him.
Shareholder voting is already a complicated and
opaque process but the uncertainty of the P&G vote was
increased by an unusual
amount of shares held by
small investors, leaving both
sides scrambling for support
from some 2.5 million shareholders instead of just a few
dozen.
Huawei Challenges
Apple on Home Turf
BY DAN STRUMPF
UBS
8
wouldn’t concede until an independent arbiter had a
chance to certify the votes, a
process that now looms.
Mr. Peltz said last week
that, by Trian’s count, his side
was ahead by 175 million votes
on the morning of the shareholder meeting. It was aware
some big shares, including the
roughly 7.5% that was controlled by employee plans,
hadn’t yet been counted.
“Whether we won or lost, it
will be by less than 1%,” he
said.
P&G executives were subdued in their response immediately after the vote. “The
those accusations and moves
by A-list talent and others in
Hollywood to distance themselves from anything Weinstein-related, several people
close to the studio believe it
can no longer continue as an
independent entity.
The company fired Harvey
Weinstein on Oct. 8 as reports
of additional sexual-assault allegations continued to emerge.
Following his ouster, Weinstein Co. tapped advertising
agencies to help it find a new
name.
Moelis & Co., which advised Weinstein Co. last year
on an unsuccessful attempt to
sell its television arm, has
Please see COLONY page B2
point Research. The dip coincided with a slowdown in Apple
sales ahead of the iPhone X
launch. The research firm said
it is unlikely Huawei held on to
the spot through the third quarter, saying Huawei’s sales likely
slowed while Apple’s picked up
in the quarter’s latter half.
However, Apple’s market
share in China has fallen to an
estimated 10% this year from
14% in 2015, said Counterpoint. Huawei’s has risen to
18% from 14% in that period.
“For Huawei we [have
gone] in the last five years
from a nobody-knows brand to
top three in the world,” said
Richard Yu, the head of Huawei’s consumer-products business, in an interview. Now, he
said, “we want to win in the
premium segment.”
Huawei unveiled the Mate 10
at an event in Munich on Monday, saying the device will start
at €699 ($826) in Europe. A
higher-end “Mate 10 Pro” will
be priced at €799 ($944).
Prices for China and other markets will be released later, the
company said. The iPhone X is
selling in the U.S. at between
$999 and $1,149. In China, it is
being sold from a base price of
8,388 yuan ($1,272).
The company has been expanding in the handset market
Please see HUAWEI page B4
SHENZHEN, China—Ahead
of shipping its most anticipated smartphone in years, Apple Inc. faces a fresh challenge
from a rival in a market where
it has lost ground: China.
Huawei Technologies Co.,
the Chinese telecom giant established three decades ago by
former People’s Liberation
Army engineer Ren Zhengfei,
is launching a new flagship
smartphone that it hopes will
help cement its grip as the top
phone maker in China and
raise its profile as a premium
phone maker elsewhere.
Apple has been losing
ground in China to domestic
competitors such as Huawei
for the past 2½ years. The
company needs its latest flagship, the iPhone X, to dazzle
Chinese buyers when it officially goes on sale next month.
Huawei is betting with its
new Mate 10 flagship that consumers will be swayed by a
phone that offers similar features to the iPhone X—including a full-screen OLED display
and artificial-intelligence abilities like image recognition—at
a slightly lower price.
In June and July, Huawei unseated Apple as the world’s second-largest smartphone maker
by sales, according to Counter-
INSIDE
KATZENBERG IN
CHORUS AGAINST
WEINSTEIN
NUMBER
MAY BE UP AT
SOCIAL SECURITY
WSJD.LIVE, B4
CYBERSECURITY, B4
New Stock Exchange to
Take Long-Term View Plenty of Froth but Tempered Steps
BY ALEXANDER OSIPOVICH
AND DENNIS K. BERMAN
Silicon Valley’s high-tech
denizens complain the public
stock markets are marred by a
narrow focus on short-term
earnings and profits.
Now they are actually doing
something about it, by launching a new framework for corporate governance, investing
and trading called the LongTerm Stock Exchange. Backed
by top Valley figures such as
venture capitalist Marc Andreessen, the LTSE says it
plans to seek regulatory approval by the end of this year
to become the newest U.S.
stock exchange.
“The only thing that matters is, ‘What did you tell the
Street, and what did you
make?’ ” said Margit Wennmachers, a partner at Mr. Andreessen’s firm, Andreessen
Horowitz. “They don’t care
about virtual reality or autonomous driving or what your
long-term strategy is.”
The solution, according to
LTSE founder and Chief Executive Officer Eric Ries, is an exchange designed to encourage
long-term thinking. Mr. Ries,
an author and startup guru,
first floated the idea of the exchange in his 2011 book “The
Lean Startup.”
Its key feature: a system in
which shares’ voting power increases the longer investors
own them. Firms listed on the
exchange would need to use
such a structure, often called
“tenure voting,” while abiding
by numerous other rules, such
as a ban on tying executive
pay to the company’s shortterm financial performance.
If the LTSE succeeds, it
could offer a new incentive for
privately held tech giants such
as Airbnb Inc. and Uber TechPlease see LONG page B2
After an
eight-year bull
market and
the cheapest
borrowing
costs in history, the big surprise isn’t
that the stock market is elevated, but that it isn’t higher.
Where’s the irrational exuberance? Why are taxi—
well, Uber—drivers still talking about politics and sports,
when they should be offering
stock tips and thinking about
packing it all in and day
trading?
The simple answer is that
after the dot-com bubble of
2000 and the housing and
credit bubble of 2007, it’s hard
to tempt the wider public into
believing in market magic.
A more complex answer
might say that after two bubbles in a decade, far too many
investors are conditioned to
think every cycle ends in irra-
JOSHUA LOTT/BLOOMBERG
STREETWISE | By James Mackintosh
Bubbles in housing and other markets have make the public skeptical.
tional exuberance. In fact,
true 1929-style tips-from-thebell-boy bubbles are rare.
Froth tends to appear in different places in each cycle, as
investors try to avoid the mistakes they made last time,
only to make new ones.
It’s certainly true that
minibubbles have been appearing. Perhaps investors
are just in need of a story to
get excited about before they
take advantage of free money
from the Federal Reserve.
The past decade has seen a
series of unsustainable stories lead to booms and busts
in emerging markets, mining
stocks, 3-D printing, alternative energy, rare-earth metals and new oil-extraction
techniques. The willingness
of cryptocurrency investors
to plow hundreds of millions
of dollars into unregulated
initial coin offerings with little or no due diligence is
merely the latest example.
Yet none of this much matters if investors aren’t getting
carried away and mispricing
risks across the market. Are
they? Answering requires
gauging sentiment, valuation
and the underlying risks.
The broadest measures of
sentiment show consumers
are feeling good. On Friday,
the University of Michigan
consumer sentiment index
came in at its highest since
2004, while the Conference
Please see STREET page B2
B2 | Tuesday, October 17, 2017
* *****
INDEX TO BUSINESSES
A
Equifax ........................ B4
Airbnb..........................B1
Airbus..........................B6
Alibaba......................A10
Aluminum of Corp. of
China.......................A10
Amazon.com ............... B2
American Express.....B10
Amneal Pharmaceuticals
.....................................B6
Andreessen Horowitz.B1
Apache.......................B11
Apple....................B1,B11
Ash Grove Cement ... B12
B
Baidu.........................A10
Bank of America
........................... B10,B11
Baoshan Iron & Steel
...................................A10
Boeing ......................... B6
Bombardier..................B6
C
F
Facebook......................B6
Founders Fund ............ B2
G
Gavekal Dragonomics
...................................A10
General Motors...........B3
Goldman Sachs Group
...................................B11
Greylock Partners.......B2
Holland & Knight........B6
Honeywell International
.....................................B3
Huawei Technologies..B1
Hueston Hennigan......B6
I
Impax Laboratories.....B6
Intercontinental
Exchange.................B11
CBS ........................ A2,B6
China Guodian Group
...................................A10
Chinalco.....................A10
China Unicom............A10
CME Group................B11
Colony NorthStar........B1
CRH............................B12
J.P. Morgan Chase
........................... B10,B11
D
ManpowerGroup.........A6
Mastercard................B10
Microsoft .................... A2
Midnight Labs.............B6
Moelis..........................B1
Morgan Stanley.B10,B11
National Amusements
E
Edward Jones............B10
P
Pfizer...........................B3
Procter & Gamble.......B1
R
Ruby Tuesday..............B6
H
J
Daimler........................B3
Delta Air Lines ........... B6
Dow Chemical.............A6
.....................................B6
Netflix ............ A1,B2,B12
Noble Energy ............ B11
Nordstrom ........... A1,B11
Northrop Grumman....A6
NRD Capital
Management.............B6
L
LCH.Clearnet Group..B11
Long-Term Stock
Exchange...................B1
M-N
S
Samsung Electronics B11
Sasac.........................A10
Sinomach .................. A10
Snap.............................B6
SoftBank Group..........B4
Summit Materials .... B12
SV Angel.....................B2
T
TBH..............................B6
Tencent......................A10
Trian Fund Management
.....................................B1
U
Uber Technologies.B1,B4
V
Viacom.........................B6
Visa............................B10
Volkswagen.................B3
W
Walt Disney................B2
Weinstein Co.........A2,B1
Wells Fargo...............B10
Wuhan Iron & Steel.A10
INDEX TO PEOPLE
A
Amarr, Tarak Ben ....... B1
Andreessen, Marc.......B1
B
Barrack, Thomas Jr.....B2
Benigno, Mark .......... B12
Klieger, Robert............B6
Korff, Tyler..................B6
L
Lauer, Josh..................B4
Loftus, Emma...........B10
Katzenberg, Jeffrey....B4
C
M
Case, Steve.................B2
Clayton, Jay ................ B2
Mason, Andrew...........B2
D
Nordstrom, Peter ....... A1
N
Ries, Eric.....................B1
Sadkin, David............B11
Schieldrop, Bjarne .... B12
Staunovo, Giovanni .. B12
T
Thiel, Peter................. B2
V
Vogt, Kyle ................... B3
W
H-K
R-S
Weddle, Jim..............B10
Weinstein, Bob...........B1
Weinstein, Harvey
............................... B1,B4
Wennmachers, MargitB1
Wolkoff, Neal..............B2
Herzer, Manuela ......... B6
Huffington, Arianna...B4
Hutcher, Larry.............B2
Redstone, Shari..........B6
Redstone, Sumner......B6
Rhimes, Shonda..........B2
Yellen, Janet...............A2
Zetsche, Dieter...........B3
P
Diamond, Mindy........B10
G
Gambarini, Simona...B11
Palaniappan, Ram.......B4
Priddy, Greg .............. B12
Y-Z
Shying Away
The number of U.S. public companies has fallen by nearly 50% since
the 1990s, partly because of firms staying private for longer.
9,000 public companies
7,500
6,000
4,500
3,000
1,500
0
1990
2000
Note: U.S. common-stock securities only
Source: Steven Kaplan, University of Chicago
LONG
Continued from the prior page
nologies Inc. to go public, at a
time when many market veterans and regulators fear the
process of going public has
lost its luster.
But
skeptics
wonder
whether the LTSE is just another way for tech founders
and elite Silicon Valley investors to maintain control at the
expense of other shareholders.
The LTSE is funded by a
range of venture-capital firms,
including Peter Thiel’s Founders Fund, Andreessen Horowitz, SV Angel and Greylock
Partners, and individual investors including former Twitter
Inc. CEO Dick Costolo, AOL cofounder Steve Case and
Groupon Inc. founder Andrew
Mason. The firm says it has
raised $19 million from around
70 investors in all.
Now, the LTSE needs to convince bureaucrats in Washington to sign off on its unorthodox approach, as it prepares an
application for stock-exchange
status with the Securities and
Exchange Commission.
That effort may get a boost
from the White House’s probusiness agenda. SEC Chairman Jay Clayton has voiced
concerns about the nearly 50%
drop in the number of U.S.
public companies over the
past two decades—a trend
that is partly due to companies choosing to stay private
for longer.
Mr. Ries said he had been in
preliminary discussions with
SEC staffers for nearly two
years and was encouraged by
their early reactions. Still, winning exchange approval is a
daunting process, potentially
taking a year or more.
The LTSE effectively creates a
new approach to corporate governance by requiring its companies to adopt tenure voting and
many other policies in areas
ranging from executive pay to
2010
THE WALL STREET JOURNAL.
disclosure to board oversight.
For instance, executives’ bonuses couldn’t be tied to financial-performance targets over
periods of less than one year.
If the executives are paid in
company stock, the shares
couldn’t fully vest for at least
five years.
LTSE-listed firms would still
publish quarterly results—an
SEC requirement—but they
would be barred from releasing
quarterly earnings guidance, a
practice that some critics say
fosters short-term thinking.
Meanwhile, tenure voting
would be available to any
shareholder of an LTSE-listed
company. If an investor opted
into the system, the voting
power of his or her shares
would grow over time, capped
at 10 times the power of ordinary common stock after a decade. If the shares were sold,
the voting power would be reset for the new owner.
The net effect, said Mr. Ries,
is to create an ecosystem for
companies that want to pursue
a long-term vision, bound by a
common set of rules. “Even if
we fail, we’ll go down swinging
and fighting the good fight,” he
said. “This is an experiment
worth running.”
Not everyone agrees. The
voting structure will depress
the share price of any company listed on the LTSE, said
Neal Wolkoff, former CEO of
the American Stock Exchange.
“Fewer people will want to
buy into a company where
there’s entrenched management,” he said.
Mr. Ries disputes the idea
that the LTSE is good for
founders and bad for everyone
else. In his view, tenure voting
is better than the solution favored by some Silicon Valley
firms: severely limiting the
voting power of ordinary
shareholders through two or
more share classes.
“We don’t think it’s right,”
Mr. Ries said. “Unlimited power
monarchies haven’t had a very
good track record historically.”
BUSINESS & FINANCE
Netflix Subscriber Growth Surges
BY AUSTEN HUFFORD
Netflix Inc.’s wagers on
original programming and international expansion are paying off as the streaming service again posted strong
subscriber growth amid an increasingly competitive streaming video market.
The Los Gatos, Calif., company ended its third quarter
with 104 million paid streaming
subscribers globally. It added
5.3 million streaming users in
total, outpacing the 4.4 million
net additions it had projected.
Netflix has been pouring
money into original programs
such as “Stranger Things” and
“The Crown” to fend off competition from other streaming
services and continue to attract new subscribers around
the world. The company now
says it plans to spend as much
as $8 billion on content next
year—up from an earlier estimate of $7 billion—far outstripping the investments expected from rivals Hulu,
Amazon.com Inc. and HBO.
Revenue increased 30% to
$2.99 billion in the third quarter, slightly topping analysts’
estimates, and the company’s
operating margin expanded.
Shares in Netflix rose nearly
1.3% in after-hours trading
Monday. The stock has gained
64% this year though Monday,
giving the company a market
value of about $87.5 billion.
The company said it now
has $17 billion in streamingcontent obligations, a measure
of current and future costs for
content acquisition, licensing
and production, an increase
from $14.4 billion in the same
quarter last year.
Competition for viewers’ attention has been getting more
fierce. Some content owners,
such as Walt Disney Co., are
planning to offer their own
streaming services, pulling
some content from Netflix. Amazon, meanwhile, is boosting
its own spending to lure talent
and create original shows. Hulu
took home best drama at this
year’s Emmy Awards for “The
Handmaid’s Tale”—becoming
the first streaming service to
win the coveted prize. New
competitors are on the horizon,
with Apple looking to spend
roughly $1 billion to procure
and produce original content
over the next year.
In a letter to shareholders,
Netflix said the “long-term
trends are clear” that the com-
pany’s “future largely lies in
exclusive original content,”
and less on licensing programs
from other content suppliers in
Hollywood. Netflix said more
than one-quarter of its content
spending will go toward original content this year, an
amount that could eventually
reach more than 50%.
“It’s an exciting period, and
30%
The streaming-video company’s
third-quarter revenue increase
both media and technology
companies see the same big
opportunity as we do,” Netflix
said. “We have a good head
start but our job is to improve
Netflix as rapidly as possible.”
In response to more competition, Netflix has focused on
signing creative talent and
owning its own production
and intellectual property.
Netflix recently signed
Shonda Rhimes, the creator of
ABC hits including “Grey’s
Anatomy” and “Scandal,” to a
multiyear exclusive agreement
to develop shows.
“It gets very competitive for
the handful of superstars, but
overall player personnel costs
are pretty predictable,” Netflix
Chief Content Officer Ted Sarandos said on a video chat with
an analyst, using a sports metaphor to refer to how Netflix is
able to manage content costs.
Netflix in August announced its first acquisition,
buying comic-book publisher
Millarworld.
Netflix has been pursuing
global expansion as its core
U.S. market matures and as it
works to offset growing content costs and original programming investments.
The company added 4.45
million international subscribers in the quarter, compared
with its forecast of 3.65 million. It added 850,000 U.S.
subscribers, compared with its
target of 750,000.
Netflix posted a third-quarter profit of $130 million, or
29 cents a share, compared
with a profit of $52 million, or
12 cents a share, in the same
quarter last year.
Heard on the Street: Netflix
needs to feed the beast... B12
COLONY
Continued from the prior page
been hired by the company’s
board as an adviser on the potential sale. Weinstein Co.’s programs include “Project Runway”
and “Waco” a coming miniseries
about the David Koresh standoff.
Before the current scandal,
Weinstein Co.’s board of directors believed its television business alone was worth about
$650 million. Now, the TV and
film business combined may be
worth less than that, said a person close to the company.
Larry Hutcher, a co-managing partner at Davidoff Hutcher
& Citron LLP who specializes in
corporate buyouts and disputes,
estimates that Colony could get
as much as a 40% discount if it
buys Weinstein Co., based on
the damage already done and
the urgent timeline of the sale.
“No respectable business or
talent would touch him,” Mr.
Hutcher said of Harvey Weinstein. Before Harvey Weinstein’s
firing, the brothers owned a
combined 42% of the company;
it is unclear whether recent
events have affected their control. “The only alternative is to
find somebody to come in and
take out Harvey’s position, so
they can say, ‘Look, we’re wiping the slate clean,’” Mr.
Hutcher said.
Thomas Barrack Jr., executive chairman of Colony Capital, said in prepared remarks
that with his firm’s investment
STREET
Continued from the prior page
Board measure is already the
highest since the dot-com
bubble. Consumer sentiment
often moves in line with
stocks, but it isn’t a reliable
leading indicator, and it might
just be that higher share
prices make people feel good.
Measuring investors is
trickier. Direct surveys suggest they’re fairly bullish,
but nothing like as bullish as
they have been at market
tops in the past.
Valuation is easier. U.S.
stocks are expensive. On
price to trailing or forward
earnings, price to book, price
to sales, and even when adjusted for profit growth or
the economic cycle, they
have rarely been pricier.
On the other hand, risk
LIFETIME TELEVISION/EVERETT COLLECTION
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
THE WALL STREET JOURNAL.
Tim Gunn and Heidi Klum with a contestant designer during a 2014 episode of ‘Project Runway.’
in Weinstein Co., “We will help
return the company to its
rightful iconic position in the
independent film and television industry.”
Bankers who have worked
with Weinstein Co. have previously said the company could be
sold off as three separate assets:
a movie studio, a TV arm and a
library of hundreds of titles.
The television division is considered the most valuable. The
library could prove attractive to
buyers who want to license the
movies to streaming services
such as Netflix Inc. The movie
studio, which is the best-known
of the company’s divisions,
could be trickiest to unload
since it was most closely associated with Mr. Weinstein and his
seems quiescent. Sure, the
Middle East is in flames, but
it has been for years and as
long as the oil keeps pumping, this is a human rights
issue, not a market issue.
Broadly speaking, politics
and geopolitics matter to
markets when they hit the
economy, and at least so far
they haven’t.
So, no bubble, a decent
economic backdrop and
happy days ahead. Investors
who share my concern that
there is likely to be more inflation and Fed tightening
than the market assumes
will be cautious.
But those who believe
we’re in a low-inflation
world with decent economic
growth to come should be
looking for the story that
will turn the stock-price
boom into a proper bubble
and inflate prices and valuations still further.
Bears in Hiding
Few investment newsletters are bearish, according to Investors
Intelligence’s survey.
70%
Recession
Bullish
60
50
40
30
20
10
Bearish
0
2007 ’08
’09
’10
Source: Thomson Reuters Datastream
’11
’12
’13
’14
’15
’16
’17
THE WALL STREET JOURNAL.
ability to attract A-list talent.
The deal reintroduces Mr.
Barrack to the Weinstein world.
Mr. Barrack, a billionaire realestate magnate, was chairman
of Miramax, the Weinstein
brothers’ former studio, after
Colony and other investors
bought it from Walt Disney Co.
for $660 million in 2010.
Colony’s focus was on finding ways to generate new revenue from Miramax’s library
of 700 titles, which includes
modern-day classics such as
“Pulp Fiction” and “Shakespeare in Love.” The firm licensed those movies to
streaming services.
In 2013, Mr. Barrack and
the brothers discussed merging Weinstein Co. and Mira-
max but the deal never materialized. Last year, Colony sold
Miramax to Qatar-based BeIN
Media Group for an undisclosed amount.
Since then, Mr. Barrack’s
national profile has risen due
to his friendship with President Donald Trump. Mr. Barrack hosted fundraisers for Mr.
Trump in Los Angeles and
raised tens of millions of dollars for a super PAC backing
the then-candidate. Since the
election, he has been called a
“Trump whisperer” and rumored as a candidate for an
ambassador post.
A spokeswoman for Mr.
Barrack declined to comment.
—Austen Hufford
contributed to this article.
ADVERTISEMENT
Legal Notices
To advertise: 800-366-3975 or WSJ.com/classifieds
BANKRUPTCIES
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Tuesday, October 17, 2017 | B3
THE WALL STREET JOURNAL.
BUSINESS NEWS
BY MIKE COLIAS
AND TIM HIGGINS
General Motors Co. plans
to become the first company
to test self-driving cars in New
York City, a move aimed at asserting leadership in the race
to develop autonomous cars
and a potentially important
step toward commercializing
the technology.
GM will deploy a fleet of selfdriving Chevrolet Bolt electric
cars early next year in a 5square-mile section of lower
Manhattan that engineers are
GM to test fleet of
Chevrolet Bolt electric
cars early next year
in lower Manhattan.
mapping, said Kyle Vogt, chief
executive of Cruise Automation,
the driverless-car developer GM
acquired last year. The move
could be seen as a threat to the
thousands of taxi drivers piloting yellow cabs around New
York, as autonomous robot-taxis
operated by GM and its rivals
are seen eventually displacing
human drivers.
GM said a safety operator
will be at the wheel of each
car to gather data and take
over if something goes wrong.
GM’s Cruise operation has
been testing more than 100
self-driving Bolts in various
markets, but its work in San
Francisco is seen as particularly valuable because it offers a congested environment
with a high concentration of
hairy situations that fully automated cars must learn to
navigate. New York will pres-
ent similar challenges and offer new hurdles, including bad
weather and more-aggressive
drivers, which will “improve
our software at a much faster
rate,” Mr. Vogt said.
“Anyone else who’s driven
in New York City knows that
it’s going to present some
unique challenges,” he said in
an interview. Cruise will open
a research facility in the city
but declined to discuss details.
GM is racing to develop vehicles that drive themselves as
tech companies try to perfect
technology that could shuffle
the power players in the auto
industry. One-quarter of miles
driven in the U.S. by 2030
could be through shared, selfdriving vehicles, according to
an estimate from the Boston
Consulting Group.
Most companies have focused testing in Silicon Valley—42 companies hold permits
to test autonomous vehicles on
California’s public roads. That
includes Google parent Alphabet
Inc. through its Waymo unit,
which is testing around its corporate campus in suburban
Mountain View. It is also scaling
up operations in the Phoenix
area, where it offers rides to
nonemployees in 500 Chrysler
minivans, with a safety operator
at the wheel.
Cruise and other new competitors are making up for lost time
against Waymo, which is considered the leader after spending
eight years collecting more than
3.5 million autonomous miles in
more than 20 cities.
GM executives argue that
hard-earned city driving is
more useful for the car to
learn how to handle unusual
situations that human drivers
take for granted, such as how
to handle broken traffic lights
at an intersection.
STEFFI LOOS/GETTY IMAGES
Self-Drive
Cars Planned
In New York
From left, Daimler CEO Dieter Zetsche with Volkswagen Chairman Matthias Müller and Baden-Wuerttemberg Gov. Winfried
Kretschmann in Berlin in August. Mr. Zetsche said Monday that companies need to ‘continuously evolve and adapt’ to rapid change.
Daimler Charts Leaner Approach
BY WILLIAM BOSTON
BERLIN—Daimler AG has
decided that less is more.
After months of study, the
automotive company that
owns the Mercedes-Benz car
brand said Monday it is taking
preparatory steps to reorganize, consolidating its five
business divisions into three
separate registered companies.
The company said the move
would give the units greater
entrepreneurial freedom and
“better utilize the potential
for growth and earnings” in
their respective markets.
The reorganization, which
still requires approval from
the supervisory board and
shareholders, could set the
stage for Daimler to break up
the company into separate
publicly listed enterprises
later. The auto maker said
there were no current plans to
spin off units.
Daimler’s announcement
comes amid a recent wave of
industrial spinoffs, including
announcements last week by
Pfizer Inc. and Honeywell International Inc. to hive off
major business units.
Daimler rival Volkswagen
A Streamlined Structure
Daimler intends to consolidate into three separate companies.
Mercedes-Benz Cars and Vans
Employees: 163,976
Revenue: €102 billion
Daimler
Trucks and Buses
Employees: 96,541
€37.38
Earnings:*
€9.27 billion
Daimler
Financial
Services
Employees:
12,062
€20.66
€2.15
€1.74
102
*Before interest and taxes
THE WALL STREET JOURNAL.
Source: company reports
AG also unveiled plans last
week to group components
manufacturing of its dozen
different brands into a cohesive unit, a first step toward a
potential spinoff farther down
the road. Volkswagen said
there were no plans to split off
the unit.
Dicing big conglomerates
into more manageable businesses has its advantages, say
analysts. The businesses tend
to outperform the broader
stock market. Untethered from
the larger corporation, they
can become more nimble.
That is an important factor
for auto companies that have
to ramp up production of electric vehicles and face competition from Silicon Valley over
the development of self-driving car technology.
“Whoever aims for sustainable competitiveness and profitability must continuously
evolve and adapt to rapidly
changing surroundings—technologically, culturally and also
structurally,” Daimler Chief
Executive Dieter Zetsche said
in a written statement.
Daimler now has five separate businesses that generated
€153 billion ($181 billion) in
revenue last year and €8.8 billion in net income. The reorganization plan calls for creating
three independent companies
that would be wholly owned
subsidiaries of the parent,
Daimler AG.
Daimler would merge Mercedes-Benz Cars and Mercedes-Benz Vans into one
company. It would group
Daimler Trucks, one of the
largest truck makers in the
world and owner of Freightliner in the U.S., and Daimler
Buses into a second company.
The third company, Daimler
Financial Services, already exists. The unit consists of Daimler’s bank that is used to finance car leasing and loans, as
well as the company’s stable
of new mobility services such
as the Car2Go car-sharing service, the largest in Europe.
“We are creating the conditions for greater customer and
market focus and therefore
more growth opportunities,”
Bodo Uebber, the company’s
chief finance officer, said in a
written statement.
YOUR LENS DETERMINES YOUR PERSPECTIVE
BROADEN YOUR EXPOSURE
Fixed Income.
Develop a clearer picture.
Photography is not the only market that has
completely changed over the past decade.
Allocations to non-core bond strategies have
grown at a much faster rate than core according
to our proprietary database of thousands of client
portfolios. Morningstar® data also shows noncore bond strategies are more than three times
what they were 10 years ago.
When exposures change this dramatically, new
risks develop as well.
Each piece of the fixed income spectrum
requires its own lens. Janus Henderson has the
expertise to help you develop better portfolios.
Strategic Income Fund (HFAIX)
·
Global Unconstrained Bond Fund (JUCIX)
·
Flexible Bond Fund (JFLEX)
·
Short Duration Income ETF (VNLA)
To learn more about our insights, visit
blog.janushenderson.com
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and
other information, please call Janus Henderson at 800.668.0434 or download the file from janushenderson.com/info. Read it carefully before you invest or send money.
Investing involves risk, including the possible loss of principal and fluctuation of value. Fixed income securities are subject to interest rate, inflation, credit and default risk. The bond market is volatile. As interest
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The return of principal is not guaranteed, and prices may decline if an issuer fails to make timely payments or its credit strength weakens. Foreign securities are subject to additional risks including currency
fluctuations, political and economic uncertainty, increased volatility, lower liquidity and differing financial and information reporting standards, all of which are magnified in emerging markets. Derivatives can be
highly volatile and more sensitive to changes in economic or market conditions than other investments. This could result in losses that exceed the original investment and may be magnified by leverage.
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B4 | Tuesday, October 17, 2017
THE WALL STREET JOURNAL.
* *****
TECHNOLOGY
WSJ.com/Tech
Alternative is sought
for Social Security
number to establish
a person’s identity
No one intended for the Social Security number to become the cornerstone of
Americans’ financial lives. But
it has, and the Equifax Inc.
hack has shown how ill-suited
the nine-digit figure is to this
role.
Now, bankers and policy
makers are saying it is time to
find a better tool to help establish an individual’s identity.
The trouble is, at least when it
comes to finance, there is no
easy replacement.
Having a universal, standardized data point for establishing someone’s identity has
helped fuel the drive toward
seamless digital access to financial services and credit.
Millions of consumers can
open a bank account or get approved for a credit card online
with just a few pieces of information, among them their Social Security number.
Alternatives are available,
including ones based on
smartphones or biometric
data. But they each come with
their own problems and rarely
have the ubiquity of Social Security numbers.
The risk is that new methods of authenticating a person’s identity throw sand in
the gears of the U.S. consumer
credit system, making it
slower or more difficult for
people to get financing. That
could affect the U.S. economy:
Americans had $3.7 trillion in
outstanding credit in the second quarter, helping to fuel
$13.3 trillion in spending,
roughly 70% of the total U.S.
gross domestic product, according to Federal Reserve
data.
“There isn’t in the market
right now a viable singular re-
LIBRARY OF CONGRESS
BY TELIS DEMOS
AND PETER RUDEGEAIR
Workers at the Social Security Board Records Office verify an application in this file photo.
A Humble Start
To Widespread Use
u 1936: The first Social Security numbers are issued
u 1968: American Bankers Association endorses the use of
Social Security numbers to
match up account records
stop having the words “Not for
Identification” printed on them
tentially affecting records of 90
million consumers
u 1973: Justice Department
study recommends a total prohibition on using of Social Security numbers beyond government benefits on security and
philosophical grounds
u 2001: USA Patriot Act requires banks to put customer
identification programs in place
that often centered on collecting Social Security numbers
u 1972: Social Security cards
u 1984: Access to the database
of TRW, an early credit-reporting firm, is compromised, po-
u 2017: Credit-reporting firm
Equifax Inc. exposes Social Security numbers and other personal information
placement for a Social Security number,” said Al Pascual,
research director and head of
fraud and security at consulting firm Javelin Strategy & Research. “That Social Security
number has become a linchpin
from an identity point and an
authentication standpoint.”
But the flaws in the status
quo are becoming apparent.
The Equifax breach exposed
Social Security numbers, along
with other vital pieces of in-
formation used to authenticate
someone’s identity, of potentially 145.5 million Americans.
That has prompted policy
makers to think about ways to
cut back on the use of Social
Security numbers. This month,
the Trump administration’s
top cybersecurity official said
the Social Security number
has “outlived its usefulness.”
Last week, a top Republican
in Congress introduced a bill
that would require the major
credit-reporting companies to
phase out by 2020 the use of
Social Security numbers to
verify consumers’ identities.
Despite its pervasiveness,
the Social Security number,
created in 1936, was “never intended to serve as a personal
identification document,” according to a history published
by the government agency
that administers it.
Yet, by the 1960s, its use
was widespread. Banks began
using the identifier to solve
their own headaches matching
up the account records of “literally millions of Smiths, Joneses, Williamses, and Johnsons,” according to a 1968
report by the American Bankers Association.
“When the banks adopted
the Social Security number, it
lent legitimacy to the entire
idea” in the private sector,
said Josh Lauer, an associate
professor at the University of
New Hampshire and the author of a history of credit-reporting firms.
The ABA said at the time
that it liked the Social Security number because it was
unique, permanent and used
by more than 80% of adults.
Credit-reporting firms such
as Equifax also started using
the number to help authenticate applicants. Such firms
took on the role of stockpiling
consumers’ digits because the
Social Security Administration
made it difficult to cross-check
an applicant’s information
with what it had on file.
After 1972, Social Security
cards no longer had “Not for
Identification” printed on
them.
The advent of the digital
era only accelerated the trend.
As banks moved away from
branch-based
service—in
which they could at least eyeball every customer as part of
verifying them—toward web
and mobile services, the need
for a speedy way to identify
unknown borrowers increased
greatly.
The problem, credit specialists said, is that Social Security numbers weren’t simply
used as numerical versions of
a first name to identify a person, but as a keyword to authenticate that the person is
who they say they are.
“It is basically a public
number,” said Ram Palaniappan, chief executive of financial-technology startup ActiveHours. “It should have never
been used for authentication,
to unlock anything.”
NBC, Snap to Produce Short-Form Content
BY JOE FLINT
AND GEORGIA WELLS
NBCUniversal and Snap
Inc. are teaming up to produce
content for Snapchat, in an effort to stake a claim in a
crowded market where both
traditional media companies
and cash-flush tech firms are
vying to create original shows.
The partnership is the latest push to expand Snapchat
beyond its popularity as a
messaging application into a
full-fledged content provider.
For Comcast Corp.’s NBCUniversal, the joint venture
deepens its relationship with
Snap, in which it owns a stake,
and illustrates its desire to
HUAWEI
Continued from page B1
in the past few years after
dominating the market for
telecommunications equipment, where it competes with
Ericsson AB and Nokia Corp.
Mr. Yu, Huawei’s brash-talking product chief, set a goal in
2016 of becoming the world’s
top seller of smartphones globally in four or five years. He
has since toned down his ambitious pledge and says the company is more focused on competing in the high-end segment.
Huawei has had some success edging into the premium
segment long dominated by
Apple. The company shipped
more than six million of its
prior flagship, the P10, in the
first half of the year. The average sales price of its phones
has been rising, while phones
costing more than $500 are
making up a bigger share of total sales, according to Canalys.
Apple still holds a commanding position in China’s market
for premium smartphones, a
segment coveted because it is
the most profitable for phone
makers. In the first half of the
year, Apple controlled 61% of
China’s premium market—defined as the market for phones
$400 and up—versus 16% for
Huawei, according to Counterpoint. In the latter half of 2015,
Apple controlled 86% of China’s
premium market.
But Apple still faces pressure
on several fronts. Early reports
indicate tepid demand in China
create content for platforms
beyond its own broadcast and
cable networks.
The as-yet untitled studio
has struck a deal with Donut
Studios, a production company
headed by Mark and Jay Duplass, two brothers whose acting, directing and producing
credits include the HBO shows
“Togetherness” and “Room
104” as well as movies for
Netflix. The focus of the partnership will be to create
scripted short-form content
targeting the 18- to 24-yearold audience, a demographic
whose consumption of traditional media is on the wane.
At a time when other tech
companies are making bold
commitments to creating their
own original content, Snap
seems to be more willing to
get into bed with traditional
media companies.
“We feel we want to be
friends of media,” Snap’s content head, Nick Bell, said at a
conference in August.
Facebook has said it is willing to spend as much as $1 billion through 2018 to create
original shows for its platform, and Apple Inc. has set a
budget of roughly $1 billion to
procure and produce original
content in the next year.
Without the war chests of
Facebook and Apple, Snap is
articulating what it can offer
media companies. At the Au-
and elsewhere for the iPhone 8,
while the iPhone X has been hit
by production snags, fueling
worries about potential product shortages ahead of its
early-November launch. Apple
declined to comment.
Those stumbles come at a
difficult time for Apple in
China. It now sits in fifth
place, having lost ground to
domestic firms such as Huawei
and newer companies like
Oppo Electronics Corp. and
Vivo. Analysts say those firms
have been more responsive to
local tastes, offering similar
curity concerns—though Huawei has long called those concerns unfounded.
Huawei has been taking pot
shots at Apple. Last month it
released a Facebook video
poking fun at the iPhone X’s
face-based unlocking feature,
which hit a very public snag
during its unveiling by Apple
in September. The video called
the Mate 10 “the real AI
phone.”
Huawei is touting AI abilities as a major selling point
for the Mate 10. It says its
new phone will contain a chipset developed in-house and
containing a so-called neural
processing unit, engineered to
handle AI tasks such as image
recognition. Huawei says the
phone’s AI will do tasks such
as tailor the camera’s settings
to the objects in a photo—for
example, tweaking the lighting based on whether it sees
faces or a landscape.
The iPhone 8 and X offer
similar AI features, said Mr.
Richardson of Counterpoint.
“Huawei and Apple are the
only guys that will have this
for the time being,” he said.
But while Huawei’s grip is
tightening in China, it is likely
to pose only a narrow challenge to Apple in locales outside its home market, Mr.
Richardson said.
61%
How much of China’s premium
phone market Apple controls
technology at lower prices and
better integrating Chinesespecific web services, like the
social-media platform WeChat.
With the exception of Huawei, Chinese vendors have yet
to mount a serious challenge
to Apple in the high-end market. And in the case of Huawei,
its success has been greatest
in markets where it has longstanding relationships with
carriers, such as certain markets in Western Europe, said
Peter Richardson, research director at Counterpoint.
Huawei sells a tiny number
of devices in the U.S., where
its networking equipment is
effectively banned due to se-
MORE ON MOBILE
WSJ
.COM
Get the latest
news from WSJ’s
D.Live technology
conference, at
WSJ.com/Tech.
gust conference, Mr. Bell described Snap as a place where
viewers can discover content
and where TV providers can
drive interest among young
viewers and bridge the gap between TV seasons.
Lauren Anderson, a veteran
NBC Entertainment executive,
has been tapped as chief content officer for the venture. Ms.
Anderson most recently was a
senior vice president of primetime programming for NBC.
The venture will report to a
board of NBCU and Snap executives.
In a statement, Ms. Anderson said the combination of
NBC’s creative expertise and
Snap’s digital reach creates “the
unique ability to take mobile
programming to the next level,
creating compelling shows for
both viewers and advertisers.”
Terms of the venture weren’t
disclosed. Mark Duplass joked
that Donut is getting a “big
bucket of money and we’re going to take that and make as
many shows as we can.”
Most content on Snap runs
three to five minutes with 10
second ad breaks. Mr. Duplass
said shows he and his brother
develop may run closer to
seven or eight minutes and 10
minutes at the most. The duo
will look to create at least
three shows and hopefully
have something out early next
year.
Head to Head
How the Huawei Mate 10 stacks up against Apple's iPhone X
APPLE
iPhone X
HUAWEI
Mate 10*
Left-to-right bezel-less
OLED screen (6 inches)
Display
Fully bezel-less
OLED screen (5.8 inches)
2160 x 1080 pixels
Resolution
2436 x 1125 pixels
Kirin 970 with
‘neural processing unit’
Chipset
A11 Bionic chip
with ‘neural engine’
20 mega-pixel
dual camera
Camera
12 mega-pixel
dual camera
Android 8.0
Operating
system
iOS 11
AI-supported
photography
Key
offering
Facial-recognition
unlock
$942
Price
$1,273†
*Specs are for Pro version and price is for Europe (China price hasn't yet been released). †Base
price in China.
Sources: the companies
THE WALL STREET JOURNAL.
NIKKI RITCHER FOR THE WALL STREET JOURNAL
After Equifax, a New Way Forward
Jeffrey Katzenberg
Weinstein
Behavior
Is Called
Systemic
BY ERICH SCHWARTZEL
AND GREG BENSINGER
LAGUNA BEACH, Calif.—Harvey Weinstein’s pattern of alleged sexual-harassment is emblematic of a systemic problem
in Hollywood and Silicon Valley
of tolerating the behavior of top
performers, executives Jeffrey
Katzenberg and Arianna Huffington said Monday.
Mr. Weinstein’s behavior
was characteristic of “casting
couch” abuse that has long
tainted Hollywood, Mr. Katzenberg, a longtime show-business
executive who worked with Mr.
Weinstein, said Monday at The
Wall Street Journal’s WSJ
D.Live technology conference.
Ms. Huffington, a member of
the Uber Technologies Inc.
board, said Mr. Weinstein’s results—the engine behind many
Oscar wins and well-regarded
television shows—allowed his
behavior to be swept under the
rug. Uber, the ride-sharing firm,
had similarly fallen prey to “the
worship at the altar of hypergrowth” in its co-founder Travis
Kalanick, who resigned in June.
Mr. Katzenberg said Hollywood’s problem with how it
treats women goes well beyond Mr. Weinstein.
“He is not a lone actor in
this,” he said. Asked if other men
in Hollywood abused women,
Mr. Katzenberg said “100%.”
He added: “There’s a pack
of wolves.”
However, Mr. Katzenberg
added that there are many
heavyweights such as Steven
Spielberg—“a man of great integrity”—who have produced
Silicon Valley has
had its own explosion
of controversy over
treatment of women.
many successes without scandal.
“The casting couch has been
in Hollywood from the beginning,” said Mr. Katzenberg.
“The complicity around the acceptance of it and silence
about it is the crime. Harvey
Weinstein, make no mistake
about it, he is a monster.”
Mr. Weinstein has been
fired and ostracized by Hollywood since news reports earlier this month detailed decades
of
sexual-assault
allegations. His studio, Weinstein Co., on Monday said it
was exploring a possible sale.
Silicon Valley has had its
own explosion of controversy
over the treatment of women.
Uber has been at the nexus of
that debate after a female employee published a blog post on
how women were treated there.
Since then, Mr. Kalanick has
stepped down and Ms. Huffington has led an effort to improve
conditions for women at Uber.
Messrs. Katzenberg and
Weinstein have crossed paths.
Mr. Katzenberg was chairman
of Walt Disney Co. when the
studio bought Mr. Weinstein’s
Miramax studio in 1993.
As Mr. Weinstein’s boss, Mr.
Katzenberg said he took hundreds of meetings with the
producer, including at the Peninsula Hotel in Beverly Hills
where he is said to have harassed several women.
“Literally not a single time
had Harvey ever been abusive
to somebody in my presence,”
he said.
After selling his DreamWorks Animation SKG Inc. studio for $3.8 billion last year,
Mr. Katzenberg, 66 years old,
founded WndrCo LLC, a firm
that is building a subscription
service of short-form mobile
content that he calls “new TV.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 17, 2017 | B5
TECH’S MOST
AMBITIOUS
MINDS, ON
STAGE AND
ON THE RECORD
2017 LINEUP OF SPEAKERS
BILL ACKMAN
JEREMY JOHNSON
JESSICA O. MATTHEWS
Founder and CEO, Pershing Square Capital
Management
Co-Founder and CEO, Andela
Founder and CEO, Uncharted Play, Inc.
SAM ALTMAN
PEGGY JOHNSON
TARIQ MEYERS
EVP, Business Development, Microsoft
Head of Inclusion and Diversity, Lyft
JEFFREY KATZENBERG
STEVEN MOLLENKOPF
Partner, WndrCo
CEO, Qualcomm Incorporated
President, Y Combinator
DAN AMMANN
President, General Motors Company
CHIP BERGH
PHILIP KRIM
JENNIFER NASON
Co-Founder and CEO, Casper
Global Chairman, Investment Banking, J.P. Morgan
President and CEO, Levi Strauss & Co.
BARRY DILLER
BRIAN KRZANICH
JONAH PERETTI
CEO, Intel
Founder and CEO, BuzzFeed
Chairman and Senior Executive, IAC and Expedia, Inc.
JOELLE EMERSON
GEORGE KURTZ
MATTHEW PRINCE
Co-Founder and CEO, CrowdStrike
Co-Founder and CEO, Cloudflare
JENNY LEE
CHUCK ROBBINS
Managing Partner, GGV Capital
CEO, Cisco
Founder and CEO, Paradigm
DAVID EUN
President, Samsung NEXT
CHRISTINA LEWIS HALPERN
MAX LEVCHIN
MARK SAGAR
Co-Founder and CEO, Affirm
Co-Founder and CEO, Soul Machines
Founder and Executive Director, All Star Code
JOHN HANKE
ROBIN LI
JOSEPH TSAI
Co-Founder, Chairman and CEO, Baidu, Inc.
Executive Vice Chairman, Alibaba
Founder and CEO, Niantic, Inc.
ARIANNA HUFFINGTON
Founder, The Huffington Post; Founder and CEO,
Thrive Global; Director, Uber
MARC LORE
MICHAEL J. WOLF
President and CEO, Walmart eCommerce U.S.
CEO and Co-Founder, Activate
BILL MARIS
ANDY XU
Founder, Section 32
COO, Vincross
MARK HURD
CEO, Oracle Corporation
DAVID MARCUS
Vice President, Messenger, Facebook
OCTOBER 16–18 2017 | LAGUNA BEACH, CA
FOLLOW THE CONVERSATION ON LINKEDIN WITH #WSJDLIVE | @WSJ
Proudly supported by:
© 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ6039
B6 | Tuesday, October 17, 2017
THE WALL STREET JOURNAL.
* ***
BUSINESS NEWS
TORONTO—Plane maker
Airbus SE announced plans to
partner with Bombardier Inc.
in what could be the biggest
shake-up of the commercial jetliner business in 30 years, challenging a crippling tariff ruling
pushed by Boeing Co. and the
U.S. despite sluggish sales of a
Canadian-made aircraft.
By Jacquie McNish,
Doug Cameron
and Paul Vieira
Bombardier and Airbus said
Monday that in August they
rekindled failed talks dating
several back years and that the
European company planned to
take a majority stake in a joint
venture to market Bombardier’s CSeries jets. The pact included assembly of the plane
in Mobile, Ala., but wouldn’t
affect employment in Bombardier’s main Montreal plant.
Airbus Chief Executive Tom
Enders said the company
wasn’t investing upfront for
its majority stake in the venture, which he said would allow sales to U.S. airlines without the 300% tariff proposed
for CSeries imports by American trade authorities.
The proposed deal would
intensify competition between
Airbus and Boeing and potentially inflame a trade dispute
between the U.S. and Canada
over alleged state subsidies to
Bombardier by having some
Canadian-developed jets assembled on American soil.
“This looks like a questionable deal between two heavily
state-subsidized competitors
to skirt the recent findings of
the U.S. government,” Boeing
said in a statement.
The U.S. Commerce Department’s preliminary decision to
hit Bombardier with tariffs
that would quadruple the price
of a CSeries aircraft in the U.S.
came after Boeing complained
of predatory pricing. A final
decision is expected next year.
Bombardier CEO Alain Bellemare said the partnership
would allow the company to
sidestep heavy tariffs imposed
by the U.S. government in recent weeks over allegations
that it selling CSeries planes
at below market prices.
Although many people familiar with the deal said the
Boeing action spurred the
talks, Mr. Bellemare denied it
was the primary motivation.
Facebook
Targets
Teens in
App Deal
BY DEEPA SEETHARAMAN
AND KATHERINE BINDLEY
MARY ALTAFFER/ASSOCIATED PRESS
Bombardier,
Airbus to Join
Ruby Tuesday to Be Taken Private
Restaurant chain Ruby Tuesday Inc. is being taken private as
it struggles with unprofitability
and declining same-restaurant
sales amid broader changes in casual dining.
Private-equity firm NRD Capital
Management, which has recently
invested in other restaurant companies, is buying the casual-dining
chain for about $146 million, or
$2.40 a share.
The price is a 21% premium to
where Ruby Tuesday traded at
Friday’s close and 37% above
where the stock was in early
March before the company announced it was exploring strategic
alternatives. The deal is expected
to be completed during the first
quarter of 2018.
Ruby Tuesday shares rose
19% to $2.36 on Monday.
In recent years, the company
has closed locations and worked
to refocus on boosting sales at its
namesake Ruby Tuesday. As of
September, there were 599 Ruby
Tuesday restaurants in 41 states
and 14 foreign countries, down
from 736 locations in 2015. Most
restaurants are company-owned.
—Austen Hufford
Redstone’s Ex-Companion Files RICO Suit
BY KEACH HAGEY
Sumner Redstone’s former
companion has sued his
daughter and grandson for
more than $100 million, alleging they effectively ran a criminal enterprise to illegally spy
on her and oust her from the
media mogul’s life.
The complaint was filed in
federal court in California on
Monday, claiming violations of
the Racketeer Influenced and
Corrupt Organizations Act—a
law created to prosecute the
mafia.
In the suit, Manuela Herzer
claims that Shari Redstone
and her son, Tyler Korff, conspired with Mr. Redstone’s
nurses and staff members to
eavesdrop on Ms. Herzer and
Mr. Redstone’s communications with his attorneys, to
break into her computer to
plant documents and gather
information, and to spy on her
with security cameras in Mr.
Redstone’s mansion, among
other actions.
Ms. Redstone, along with
the help of family and staff, is
accused of forcing Ms. Herzer
from Mr. Redstone’s life “as a
direct means of gaining control of his estate plan and his
media companies”—National
Amusements, CBS Corp. and
Viacom Inc., according to the
complaint.
Mr. Redstone, 94, is the
controlling shareholder of Viacom and CBS through his National Amusements holding
company. Viacom and CBS declined to comment.
“Having gotten nowhere in
her previous three lawsuits
against Sumner, his family,
and his nurses and household
staff, Ms. Herzer has concocted a work of pure fiction
designed for media spectacle,”
Robert Klieger, an attorney for
Ms. Redstone who works at
Hueston Hennigan, said in a
statement. “Shari unequivocally rejects the fantastical allegations dreamt up by the latest in Ms. Herzer’s revolving
door of lawyers.”
Tyler Korff’s lawyer, Dan
Small, of Holland & Knight,
said in a statement that the
filing “is yet another flimsy
attempt by Ms. Herzer to demean the Redstone family
through court filings filled
with fictional allegations and
outrageous claims.
“Just as all her past lawsuits have failed, we are confident that this latest installment will meet the same fate,”
the statement said.
Ms. Herzer’s latest lawsuit
ratchets up a continuing legal
battle between herself and the
Redstones.
Facebook Inc., which is trying to make inroads with
younger users, said Monday
that it bought TBH, an anonymous polling app that has become an overnight sensation
among teens.
Launched less than three
months ago, TBH has rapidly
gained traction among U.S.
teens, a group that analysts say
is abandoning Facebook’s core
social network for services like
Snap Inc.’s Snapchat and Facebook-owned Instagram.
A Facebook spokeswoman
said TBH, which stands for
“To Be Honest,” will continue
as a standalone app under
Facebook. The app’s creators
will become Facebook employees and continue to oversee
the app’s expansion. The
spokeswoman declined to disclose the price.
The TBH deal is another example of Facebook’s willingness to acquire or mimic rival
services that pose a threat to
its dominance. The social-media company keeps a close eye
on potential threats through
an internal “early bird” warning system, The Wall Street
Journal previously reported.
The app, created by the app
development company Midnight Labs, launched on Aug. 3
in the state of Georgia. It quickly
rose to the top of the iOS App
Store, even though it still hasn’t
rolled out to all 50 U.S. states.
More than five million people have downloaded TBH and
sent more than a billion messages, the app’s developers
said Monday in a blog post announcing the Facebook deal.
TBH describes itself as "an
app for giving anonymous
feedback to friends.” Unlike
other anonymous apps, TBH
says the feedback offered to
users is strictly positive.
Drug Firms Near Merger Pact
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Impax Laboratories Inc.
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the nation’s fifth-largest generic-drug company by revenue, according to people familiar with the matter.
The companies are in advanced negotiations on an allstock deal that would hand Impax shareholders 25% of a new,
publicly traded company and
owners of closely held Amneal
the remainder, the people said.
The combined company is expected to be worth $6.4 billion, or about $9 billion with
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Impax currently has a market value of about $1.5 billion.
The Wall Street Journal re-
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The new group, to be based
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turers have been unable to win
contracts with some of the
buying groups.
To boost their bargaining
power, generic-drug companies, including powerhouse
Teva Pharmaceutical Industries Ltd., have been consolidating. Last year, Teva bought
Allergan PLC’s generic-drugs
business for $40 billion.
Paul Bisaro, an Allergan
board member who took over
as Impax chief executive in
March, is expected to become
CEO of the combined company.
He has been outspoken about
the need for generic makers to
add heft to better cope with the
buying groups and find new
ways to sell their medicines.
His challenge was coming
up with a way to do deals
given Impax’s limited cash—it
had less than $200 million as
of June. Impax, based in Hayward, Calif., had revenue last
year of $824 million.
In Amneal, Mr. Bisaro found
another undersized genericdrug maker with more than
300 medicines estimated to be
in development, as well as expertise making higher-margin
injectable drugs.
The combined company
would have about $2 billion in
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$6.4B
Value of combined ImpaxAmneal company, without debt
yearly revenue and a pipeline including biosimilar versions of the
Neupogen and Neulasta cancercare treatments and of the Copaxone multiple-sclerosis drug.
Amneal, of Bridgewater, was
founded 15 years ago by Chintu
and Chirag Patel, brothers who
immigrated to the U.S. in 1987.
They are to be co-chairmen of
the combined company. Last
year, Amneal notched what analysts estimated to be $1.2 billion in sales.
The companies are aiming
to secure benefits from increased diversification, double-digit growth in revenue
and earnings, and annual cost
savings of about $200 million
in three years.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 17, 2017 | B7
MARKETS DIGEST
EQUITIES
Dow Jones Industrial Average
S&P 500 Index
Last Year ago
22956.96 s 85.24, or 0.37%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.00 20.06
P/E estimate *
19.39 17.46
Dividend yield
2.24
2.60
All-time high 22956.96, 10/16/17
Nasdaq Composite Index
Last
2557.64 s 4.47, or 0.18%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 24.55 24.33
P/E estimate *
19.39 18.12
Dividend yield
1.95
2.15
All-time high: 2557.64, 10/16/17
Last Year ago
6624.00 s 18.20, or 0.28%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.19
24.15
P/E estimate *
21.15
19.55
Dividend yield
1.10
1.22
All-time high: 6624.00, 10/16/17
Current divisor 0.14523396877348
22800
2560
6600
22400
2530
6500
22000
2500
6400
21600
2470
6300
21200
2440
Session high
UP
Close
t
DOWN
Session open
65-day moving average
20800
20400
Aug.
6100
2410
Session low
Bars measure the point change from session's open
July
6200
65-day moving average
Open
t
Close
65-day moving average
Sept.
6000
2380
Oct.
July
Aug.
Sept.
July
Oct.
Aug.
Sept.
Oct.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Latest
Close
Low
Net chg
% chg
High
52-Week
Low
% chg
% chg
3-yr. ann.
YTD
Dow Jones
22960.12 22887.12 22956.96
Industrial Average
Transportation Avg
9971.88
9819.94
738.90
727.52
734.91
-2.34
26553.79 26477.41 26525.47
688.28
684.98
686.37
39.49
1.24
Utility Average
Total Stock Market
Barron's 400
Nasdaq Stock Market
Nasdaq Composite
6632.50
Nasdaq 100
6115.53
Standard & Poor's
500 Index
6607.03
6095.63
2559.47
6624.00
6114.53
2552.64
2557.64
4.47
1825.65
913.30
1817.97
906.03
1819.46
908.14
0.64
-0.23
Other Indexes
Russell 2000
1511.29
1499.64
1502.68
0.02
12377.25 12343.18 12359.52
542.05
542.59
-0.22
NYSE Arca Biotech
4326.21
4249.39
4272.94
11.40
NYSE Arca Pharma
556.39
551.03
552.16
-1.15
KBW Bank
99.59
98.90
0.63
PHLX§ Gold/Silver
99.52
87.94
85.91
PHLX§ Oil Service
86.14
140.00
138.11
138.32
0.23
1225.10
10.02
1216.73
9.75
1224.99
9.91
5.77
0.30
PHLX§ Semiconductor
CBOE Volatility
-0.32
0.15
0.18
0.28
0.36
26.9
16.2
10038.13
7967.02
23.1
9.0
7.1
754.80
625.44
12.1
11.4
9.6
26525.47 21514.15
687.05
521.59
20.6
27.4
14.0
14.1
11.0
11.6
6624.00
6114.53
2557.64
0.04
1819.96
918.72
0.002
1512.09
0.06
-0.04
0.27
-0.21
0.64
-1.14 -1.31
0.16
0.47
3.12
Philadelphia Stock Exchange
5046.37
4660.46
27.4
27.5
2085.18
12.5
23.1
25.7
16.2
17.5
20.3
14.2
1476.68
703.64
19.8
23.6
9.6
8.4
11.5
13.2
1156.89
24.2
10.7
11.4
12362.06 10289.35
11.1
17.8
11.8
6.9
545.78
455.65
15.4
7.2
5.8
4304.77
2834.14
41.0
39.0
12.7
555.86
463.78
11.8
14.7
4.1
100.76
70.93
40.3
8.4
14.4
96.72
73.03
4.8
9.2
2.8
192.66
117.79
-15.3
802.88 52.2
9.19 -38.9
1224.99
22.51
Trading Diary
Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer.
and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic
trading services, securities dealers and regional exchanges. Minimum
share price of $2 and minimum after-hours volume of 5,000 shares.
Volume, Advancers, Decliners
Region/Country Index
Close
Most-active issues in late trading
Company
Symbol
Volume
(000)
Last
Net chg
After Hours
% chg
High
2960.29
383.67
259.89
The Global Dow
DJ Global Index
DJ Global ex U.S.
DJ Americas
616.97
Sao Paulo Bovespa 76891.84
S&P/TSX Comp
15802.70
S&P/BMV IPC
49721.01
Santiago IPSA
4163.83
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
IBEX 35
SX All Share
Swiss Market
FTSE 100
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
5846.80
Shanghai Composite 3378.47
Hang Seng
28692.80
S&P BSE Sensex
32633.64
Nikkei Stock Avg
21255.56
Straits Times
3323.06
Kospi
2480.05
Weighted
10774.21
-0.03
-0.01 255.41 254.85
VanEck Vectors Gold Miner GDX
5,373.4
23.45
-0.01
-0.04
Netflix
NFLX
3,908.6 205.20
2.52
iShares Russell 2000 ETF IWM
2,903.8 149.32
0.08
SPY
23.50
23.41
1.24 211.00 195.30
0.05 149.45 148.85
2,816.2
55.72
…
unch.
55.90
55.72
Finl Select Sector SPDR XLF
2,699.9
26.30
…
unch.
26.31
26.27
iShares MSCI Brazil Cap EWZ
2,397.9
42.94
…
unch.
43.00
42.93
Parsley Energy Cl A
2,215.2
26.79
…
unch.
26.79
26.79
Marathon Petroleum
MPC
PE
Percentage gainers…
TransEnterix
TRXC
921.2
3.10
0.29
10.32
3.14
2.81
Immune Design
IMDZ
6.5
11.10
1.00
9.85
11.45
10.10
Impax Laboratories
IPXL
6.0
21.20
1.25
6.27
21.20
19.95
Spirit Airlines
SAVE
34.7
35.01
1.54
4.60
35.35
33.18
Myriad Genetics
MYGN
5.9
37.22
1.12
3.10
37.22
36.10
...And losers
Badger Meter
BMI
9.5
45.40
-5.40
-10.63
50.95
45.00
Helmerich Payne
HP
16.6
48.79
-3.74
-7.12
52.54
48.79
-24.7 -16.9
Sonic
SONC
60.0
24.10
-0.70
-2.82
25.60
23.00
35.1 29.0
-29.4 -26.7
American Outdoor Brands AOBC
5.5
13.90
-0.30
-2.11
14.20
13.90
Azul ADR
9.7
26.50
-0.56
-2.07
27.06
26.50
AZUL
YTD
% chg
0.14
0.14
0.13
4.14
0.55
0.33
16.9
17.7
21.5
0.10
0.63
–0.13
–97.95
–0.03
–4.47
–260.93 –0.52
0.45
18.65
14.2
27.7
3.4
8.9
29.2
–0.01 –0.003
unch.
…
–9.12 –0.22
0.21
11.14
0.09
11.83
–5.53 –0.38
0.07
14.77
0.08
0.46
0.14
1.60
–76.60 –0.75
–1.80 –0.31
–37.10 –0.40
–0.11
–8.47
8.3
11.6
12.6
10.3
13.3
–1.9
16.6
13.1
0.5
8.9
9.6
12.8
5.4
391.41
391.00
4060.79
5362.88
13003.70
1443.29
22428.31
546.67
1158.24
10181.40
585.90
9274.59
7526.97
32.60
–12.05
216.37
200.95
100.38
3.95
6.43
50.12
0.56
–0.36
0.76
0.62
0.47
0.12
0.26
0.47
3.2
8.9
30.4
22.6
11.2
15.4
22.4
16.4
Company
Symbol
Leading Brands
TDH Holdings
Jupai Holdings ADR
Exelixis
PLx Pharma
LBIX
GRAVITY ADR
Porter Bancorp
Hebron Technology
Mersana Therapeutics
uniQure
GRVY
Health Ins Innovations A
CarGurus Cl A
HTG Molecular Diagnostics
Kingtone Wirelessinfo ADR
CHF Solutions
HIIQ
PETZ
JP
EXEL
PLXP
PBIB
HEBT
MRSN
QURE
CARG
HTGM
KONE
CHFS
High
52-Week
Low
% chg
Symbol
TransEnterix
Bank of America
General Electric
Rite Aid
VanEck Vectors Gold Miner
TRXC
Vale ADR
Finl Select Sector SPDR
PG&E
Advanced Micro Devices
Micron Technology
VALE
BAC
GE
RAD
GDX
XLF
PCG
AMD
MU
24.23
17.97
17.65
17.21
16.67
3.75 0.74
31.75 6.02
24.19 7.36
32.50 10.04
13.15 1.05
70.9
...
206.2
152.1
-30.0
Natural Health Trends
TG Therapeutics
Tandem Diabetes Care
Inventure Foods
Wheeler Real Est Invt Tr
NHTC
42.69
12.90
3.47
18.12
11.98
5.72
1.45
0.39
1.99
1.27
15.47
12.66
12.66
12.34
11.86
43.00 4.50
13.75 8.05
7.02 2.50
21.01 12.71
12.25 4.72
721.0
59.3
...
...
66.9
Cenveo
Veritone
Trans World Entertainment
Fennec Pharmaceuticals
MACOM Tech Solutions
CVO
21.10
31.85
2.25
3.32
9.07
2.20
3.32
0.22
0.30
0.81
11.64
11.64
10.84
9.93
9.86
37.38 4.00
35.00 25.85
13.25 1.20
7.80 2.63
576.00 8.26
251.7
...
-25.0
-24.0
-95.8
Ardelyx
Sears Holdings
Citius Pharmaceuticals
CUI Global
Opiant Pharmaceuticals
ARDX
A consumer rate against its
benchmark over the past year
New car loan
4.00%
t
Prime rate
3.50
3.00
t
2.50
2.00
N D J FMAM J J A S O
2016 2017
1.89%
800-288-3425
Hilltop National Bank
Casper, WY
2.24%
307-265-2740
TrustCo Bank
Albany, NY
2.37%
518-436-9043
Lake City Bank
Warsaw, IN
2.49%
888-522-2265
Cambridge Savings Bank
2.59%
Cambridge, MA
888-418-5626
Monday
t
New car loan
Think Mutual Bank
Rochester, MN
1
3 6
month(s)
One year ago
1 2 3 5 710
years
maturity
Federal-funds rate target
1.00-1.25 1.00-1.25
Prime rate*
4.25
4.25
Libor, 3-month
1.36
1.35
Money market, annual yield
0.35
0.32
Five-year CD, annual yield
1.45
1.46
30-year mortgage, fixed†
3.93
3.86
15-year mortgage, fixed†
3.21
3.15
Jumbo mortgages, $424,100-plus† 4.33
4.44
Five-year adj mortgage (ARM)† 3.39
3.54
New-car loan, 48-month
3.07
3.07
HELOC, $30,000
5.26
5.22
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.88 l
0.26 l
1.19 l
l
3.54
l
2.81
l
4.23
l
3.13
l
2.85
l
4.57
1.25
4.25
1.36
0.36
1.47
4.33
3.50
4.88
4.03
3.36
5.30
1.00
1.00
1.12
-0.10
-0.08
-0.22
-0.08
0.09
-0.13
-0.15
0.81
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
-12.03
-11.52
-11.34
-11.33
-11.27
16.30
14.32
14.85
7.39
51.90
-49.4
-44.5
-69.0
-45.2
311.0
CTXR
CUI
OPNT
Ranked by change from 65-day average*
41.9
-24.0
1432.5
-44.2
6.7
10.50 0.48
26.30 0.65
53.43 -7.43
14.26 0.28
41.49 2.70
11.72
26.46
71.57
15.65
42.07
5.60
19.28
49.83
6.22
16.45
0.75
–10
0.00
–15
30
CCUR
1433
1422
1296
1216
1067
53.43
9.99
9.72
7.99
6.23
-7.43
-0.30
-0.21
9.00
7.41
71.57 49.83
11.00 9.73
9.80 9.70
8.06 5.07
7.10 4.63
PowerShares S&P 500 xRateXRLV
TRT
Trio-Tech Intl
Knowledge Ldrs Dev World KLDW
SMI
Semiconductor Mfg ADR
EXEL
Exelixis
144
166
132
1,419
29,356
840
837
802
781
760
32.22
5.61
32.49
6.59
29.02
0.00
7.68
-0.09
2.49
17.21
32.30 26.40
6.04 2.75
32.55 26.06
7.74 4.49
32.50 10.04
LCA
FSAC
AUDC
U.S.-dollar foreign-exchange rates in late New York trading
10%
0
52-Week
High
Low
Currencies
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
–5
Volume % chg from Latest Session
(000) 65-day avg Close % chg
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
Forex Race
1.50
4.05
5.50
2.55
3.01
5.00
39,218
202
571
912
304
WSJ Dollar index
s
Euro
s Yen
Country/currency
US$vs,
YTDchg
Mon
in US$ per US$ (%)
Americas
Argentina peso
.0577 17.3245
Brazil real
.3153 3.1711
Canada dollar
.7988 1.2520
Chile peso
.001615 619.20
Colombia peso
.0003407 2934.99
Ecuador US dollar
1
1
Mexico peso
.0525 19.0313
Peru new sol
.3084 3.242
Uruguay peso
.03397 29.4400
Venezuela b. fuerte .099814 10.0187
9.2
–2.6
–6.9
–7.6
–2.2
unch
–8.2
–3.3
0.3
0.2
Asia-Pacific
2016 2017
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
2.078
2.100
2.237
1.466 –1.348 1.688
2.309
3.004
2.550
5.154
2.780
1.890
2.370
3.015
2.590
5.102
2.850
1.927
2.609
3.390
2.790
6.448
3.120
2.516
1.740
2.648
2.050
4.948
2.170
1.677
1.921
2.512
0.953
7.494
0.688
2.215
805.908
5.413
5.441
6.290
5.279
5.566 6.098
1.474
3.769
2.255
4.763
2.104
2.435
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.7850 1.2739
China yuan
.1518 6.5896
Hong Kong dollar
.1281 7.8075
India rupee
.01545 64.705
Indonesia rupiah .0000742 13483
Japan yen
.008913 112.19
Kazakhstan tenge .003000 333.36
Macau pataca
.1243 8.0421
Malaysia ringgit
.2372 4.2166
New Zealand dollar
.7171 1.3945
Pakistan rupee
.00951 105.125
Philippines peso
.0195 51.262
Singapore dollar
.7399 1.3516
South Korea won .0008863 1128.28
Sri Lanka rupee
.0065100 153.61
Taiwan dollar
.03316 30.157
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
–8.3
–5.1
0.7
–4.8
–0.3
–4.1
–0.1
1.6
–6.0
–3.4
0.7
3.3
–6.6
–6.6
3.5
–7.1
US$vs,
YTDchg
Mon
in US$ per US$ (%)
Country/currency
.03025 33.060 –7.7
.00004402 22718 –0.2
Thailand baht
Vietnam dong
Europe
Czech Rep. koruna
Denmark krone
Euro area euro
Hungary forint
Iceland krona
Norway krone
Poland zloty
Russia ruble
Sweden krona
Switzerland franc
Turkey lira
Ukraine hryvnia
UK pound
.04574 21.862 –14.9
.1585 6.3108 –10.7
1.1798 .8476 –10.8
.003833 260.91 –11.3
.009493 105.34 –6.7
.1266 7.8994 –8.6
.2786 3.5899 –14.3
.01747 57.240 –6.6
.1234 8.1051 –11.0
1.0251 .9755 –4.3
.2742 3.6465 3.5
.0377 26.5250 –2.1
1.3250 .7547 –6.8
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6514 .3772
.0567 17.6290
.2861 3.4954
3.3120 .3019
2.5973 .3850
.2667 3.749
.2666 3.7507
.0751 13.3163
...
–2.8
–9.2
–1.2
0.01
3.0
unch
–2.8
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 86.46
0.21 0.25 –6.97
Sources: Tullett Prebon, WSJ Market Data Group
Commodities
COMMODITIES
Monday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
Get real-time U.S. stock quotes and track most-active
stocks, new highs/lows and mutual funds. Plus,
deeper money-flows data and email delivery of key
stock-market data. Available free at WSJMarkets.com
-0.88
-0.78
-0.38
-0.40
-4.28
41,641
39,300
39,218
33,673
32,987
1462.478
EMBI Global, J.P. Morgan
6.40
5.99
2.97
3.13
33.70
SHLD
PCG
10-yr Treasury, Ryan ALM 1738.261
DJ Corporate
380.475
Aggregate, Barclays Capital 1942.580
High Yield 100, Merrill Lynch 2862.006
Fixed-Rate MBS, Barclays 1989.340
Muni Master, Merrill
522.857
Treasury, Ryan ALM
-72.5
...
-53.3
449.9
-5.1
PG&E
Landcadia Holdings Cl A
Federal Street Acqn
AudioCodes
Concurrent Computer
2.25
Close
8.50 1.60
74.92 7.76
4.21 1.50
13.95 1.64
65.99 35.33
VERI
0.45
15.90
22.83
1.63
18.58
Corporate Borrowing Rates and Yields
Bond total return index
-13.57
-13.00
-12.50
-12.29
-12.03
WHLR
3.05
26.33
32.38
8.77
25.93
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
-0.30
-4.71
-0.25
-1.48
-5.01
SNAK
5691.6 2.81 92.47
6.7 26.24 1.59
14.7 23.36 1.65
63.6 1.86 6.90
0.7 23.46 -1.59
5
52-Week
Low
% chg
1.91
31.53
TWMC
1.75
FENC
10.56
MTSI
36.59
TNDM
79,246
70,746
48,124
45,911
41,940
3.75%
High
-10.1
54.3
-96.1
-53.0
-24.6
Symbol
3.00
Latest Session
Close Net chg % chg
30.25 18.05
15.35 4.10
70.00 2.50
10.15 2.96
14.64 7.95
Company
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
3.07%
* Primary market NYSE, NYSE American NYSE Arca only.
†(TRIN) A comparison of the number of advancing and declining
issues with the volume of shares rising and falling. An
Arms of less than 1 indicates buying demand; above 1
indicates selling pressure.
-20.34
-15.68
-14.38
-14.29
-13.72
52-Week
High
Low
notes and bonds
Bankrate.com avg†:
NYSE Arca
-5.07
-1.73
-0.43
-0.73
-1.65
Volume % chg from Latest Session
(000) 65-day avg Close % chg
* Volumes of 100,000 shares or more are rounded to the nearest thousand
t
Selected rates
Nasdaq
Total volume*1,612,573,142 180,360,019
Adv. volume* 857,880,932 71,185,207
Decl. volume* 728,604,335 108,256,523
Issues traded
3,049
1,283
Advances
1,370
575
Declines
1,514
669
Unchanged
165
39
New highs
203
242
New lows
42
40
Closing tick
379
27
Closing Arms†
0.77
1.31
Block trades*
5,874
957
19.86
9.28
2.56
4.38
10.38
TGTX
Volume Movers
s
U.S. consumer rates
Symbol
0.55
4.45
3.62
4.26
1.25
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
Company
2.82
29.22
24.13
29.02
8.75
Most Active Stocks
Company
Total volume* 694,135,998 18,116,262
Adv. volume* 340,325,420 12,176,071
Decl. volume* 348,127,382 5,528,206
Issues traded
3,060
331
Advances
1,446
134
Declines
1,486
174
Unchanged
128
23
New highs
198
6
New lows
26
8
Closing tick
364
47
Closing Arms†
0.98
0.31
Block trades*
6,063
109
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
WSJ
.COM
Low
5,525.8 255.26
SPDR S&P 500
Percentage Gainers...
Latest
% chg
Net chg
Americas
Brazil
Canada
Mexico
Chile
Interest rate
NYSE NYSE Amer.
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
World
22956.96 17888.28
0.18
-0.03
7.52
544.51
Value Line
-0.80
18.20
22.07
MidCap 400
SmallCap 600
NYSE Composite
0.37
85.24
9857.15 -79.07
Late Trading
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
600.13
1.30
184.62
51.87
2.946
1299.90
-0.21
0.42
-0.054
-1.60
0.22
600.13
527.06
-0.11 195.14
54.45
0.82
3.93
-1.80
-0.12 1346.00
166.50
42.53
2.56
1127.80
% Chg
10.50
YTD
% chg
5.80
-2.52 -4.10
3.86 -3.44
-9.19 -20.89
3.63 13.03
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
B8 | Tuesday, October 17, 2017
COMMODITIES
Futures Contracts
Open
Metal & Petroleum Futures
Contract
High hi lo
Low
Open
Settle
3.2275 s
3.2595 s
3.1380
3.1335
3.1380
3.1120
Settle
Open
interest
Chg
Agriculture Futures
Open
Chg interest
352.75
353.25
349.75
350.50 –2.25 784,307
Dec
March'18 366.00 366.75
363.50
364.25 –2.25 292,929
Oats (CBT)-5,000 bu.; cents per bu.
267.00
269.50
258.00
259.50 –7.25
4,702
Dec
March'18 267.50 270.25
259.25
262.50 –4.75
1,392
Soybeans (CBT)-5,000 bu.; cents per bu.
998.00
999.00
990.25
991.00 –9.25 260,895
Nov
Jan'18
1008.00 1009.00
1000.50 1001.50 –8.75 221,840
Soybean Meal (CBT)-100 tons; $ per ton.
327.70
328.10
324.10
324.50 –4.10 151,570
Dec
Jan'18
329.80
329.90
326.30
326.70 –4.00 83,716
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
33.60
33.91
33.55
33.59
–.10 169,392
Dec
Jan'18
33.78
34.06
33.70
33.75
–.10 97,704
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
1219.00 1221.00
1211.00 1212.00 –6.50
6,072
Nov
Jan'18
1247.50 1250.00
1241.00 1242.50 –6.00
3,722
Wheat (CBT)-5,000 bu.; cents per bu.
440.00
442.75
435.50
436.50 –3.00 258,038
Dec
March'18 458.25 461.25
454.25
455.00 –3.00 101,058
Wheat (KC)-5,000 bu.; cents per bu.
436.00
440.75
432.50
433.75 –2.50 141,536
Dec
March'18 453.50 458.50
450.75
451.75 –2.75 82,452
Wheat (MPLS)-5,000 bu.; cents per bu.
615.00
620.00
608.50
609.50 –5.50 36,060
Dec
March'18 629.00 633.75
622.25
623.50 –5.50 24,013
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
154.175 154.775
153.825 154.000 –.050
5,593
Oct
Jan'18
153.150 153.625
152.325 152.550 –.500 18,734
Cattle-Live (CME)-40,000 lbs.; cents per lb.
112.775 112.850
111.575 111.725 –1.100
9,902
Oct
Dec
117.250 117.525
116.525 116.825 –.300 150,060
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
62.500
63.875
62.300
63.700 1.500 119,060
Dec
Feb'18
67.550
68.475
67.475
68.300
.850 46,091
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
426.40
433.50 s
424.50
429.80
5.50
4,058
Nov
Jan'18
410.20
419.70 s
410.20
417.50
7.50
2,309
Milk (CME)-200,000 lbs., cents per lb.
16.71
16.78
16.71
16.76
.04
3,943
Oct
Nov
16.13
16.20
16.08
16.15
.02
4,524
Cocoa (ICE-US)-10 metric tons; $ per ton.
2,087
2,092
2,037
2,044
–43 105,588
Dec
3.2240 0.1055
1,314
3.2390 0.1055 177,551
Gold (CMX)-100 troy oz.; $ per troy oz.
Oct
1302.00 1303.80
1291.90 1299.90 –1.60
Dec
1306.00 1308.40
1292.50 1303.00 –1.60
Feb'18
1310.30 1312.70
1296.90 1307.30 –1.60
April
1312.80 1316.50
1301.00 1311.40 –1.60
June
1316.90 1320.70
1305.50 1315.40 –1.60
Dec
1330.50 1333.00
1319.80 1327.90 –1.20
Palladium (NYM) - 50 troy oz.; $ per troy oz.
Oct
985.00
985.00 s
985.00
977.40 –9.20
Dec
983.25 1005.00 s
966.75
976.30 –9.20
March'18 983.95 993.10 s
956.40
964.80 –11.10
Platinum (NYM)-50 troy oz.; $ per troy oz.
Oct
940.00
940.00
940.00
939.40 –5.80
Jan'18
947.00
950.90
930.60
942.10 –5.80
Silver (CMX)-5,000 troy oz.; $ per troy oz.
Oct
17.420
17.430
17.280
17.315 –0.040
Dec
17.425
17.495
17.135
17.369 –0.042
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
Nov
51.43
52.37
51.35
51.87
0.42
Dec
51.70
52.65
51.63
52.14
0.41
Jan'18
51.92
52.85
51.84
52.34
0.40
March
52.19
53.05
52.19
52.59
0.38
June
52.27
52.97
52.27
52.57
0.34
Dec
51.82
52.34
51.71
51.94
0.17
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
Nov
1.7975
1.8314
1.7975
1.8129 .0159
Dec
1.7994
1.8302
1.7968
1.8118 .0157
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
Nov
1.6222
1.6463
1.6144
1.6169 –.0053
Dec
1.6045
1.6248
1.5969
1.5994 –.0014
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
Nov
2.960
2.977
2.908
2.946 –.054
Dec
3.122
3.141
3.071
3.108 –.052
Jan'18
3.238
3.254
3.189
3.227 –.044
Feb
3.251
3.262
3.201
3.237 –.042
March
3.207
3.224
3.167
3.202 –.039
April
2.948
2.970
2.931
2.960 –.011
256
405,887
66,827
13,258
11,581
10,771
1
31,546
2,658
18
70,084
401
144,173
222,493
519,527
283,409
237,540
198,865
257,556
79,136
101,150
84,440
119,495
174,914
211,017
193,882
77,353
166,787
121,124
Cash Prices | WSJ.com/commodities
Monday, October 16, 2017
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Monday
Monday
12950
Coins,wholesale $1,000 face-a
Energy
0.9414
1.0728
2.870
2.820
2.850
2.550
2.610
1.260
2.750
55.500
11.750
Propane,tet,Mont Belvieu-g
Butane,normal,Mont Belvieu-g
NaturalGas,HenryHub-i
NaturalGas,TranscoZone3-i
NaturalGas,TranscoZone6NY-i
NaturalGas,PanhandleEast-i
NaturalGas,Opal-i
NaturalGas,MarcellusNE PA-i
NaturalGas,HaynesvilleN.LA-i
Coal,C.Aplc.,12500Btu,1.2SO2-r,w
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w
Metals
Gold, per troy oz
1308.37
1406.50
1303.30
1446.66
*1293.90
*1299.60
1353.04
1366.05
1366.05
1576.62
1278.24
1366.05
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
Silver, troy oz.
17.4800
20.9760
17.4000
21.7500
£13.0900
17.4100
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
(U.S.$ equivalent)
Other metals
LBMA Platinum Price PM
*941.0
Platinum,Engelhard industrial
948.0
Platinum,Engelhard fabricated
1048.0
Palladium,Engelhard industrial
1011.0
Palladium,Engelhard fabricated
1111.0
Aluminum, LME, $ per metric ton
*2140.0
Copper,Comex spot
3.2240
Iron Ore, 62% Fe CFR China-s
62.4
Shredded Scrap, US Midwest-s,w
286
Steel, HRC USA, FOB Midwest Mill-s
n.a.
Fibers and Textiles
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
0.6150
0.6753
*77.70
61.000
n.a.
Grains and Feeds
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, 5% Broken White, Thailand-l,w
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
n.a.
69
3.1550
81.1
473.2
230
86
255
2.9225
375.00
24.00
7.7325
326.50
9.4800
Monday
7.2950
4.2350
3.6575
5.2325
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
Food
175.97
166.60
0.8444
2.3750
168.25
171.50
76.00
2359
1.2452
1.4471
1.0550
14.75
0.74
60.96
n.a.
0.8920
111.00
158.38
Fats and Oils
35.5400
0.2700
n.a.
0.3222
0.2875
0.3200
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
October 16, 2017
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
guide to general levels but don’t always represent actual transactions.
Sept. index
level
Chg From (%)
Aug. '17 Sept. '16
U.S. consumer price index
246.819
252.941
All items
Core
0.53
0.19
2.2
1.7
Latest
Week
ago
52-Week
High
Low
4.25 4.25 4.25 3.50
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
0.00
0.00
0.00
0.00
0.50
0.25
1.50
0.50
0.25
1.50
1.38
0.15
Discount
1.75
1.75
1.00
Federal funds
Effective rate
High
Low
Bid
1.1700
1.3125
1.0300
1.1600
1.1700
1.3125
1.0500
1.1600
1.2000
1.3125
1.1600
1.1700
0.3500
0.5625
0.2400
0.3000
52-Week
High
Low
Federal funds (effective)
1.12
0.40
Commercial paper
Nonfinancial
1-month
2-month
3-month
Financial
1-month
2-month
3-month
1.12
1.17
1.19
1.15
1.20
1.26
1.10
1.17
1.22
1.17
1.19
1.23
1.12
1.17
1.22
1.19
1.22
1.26
0.40
0.50
0.56
0.44
0.57
0.66
Discount window primary credit
1.75
1.75
1.75
1.00
Conventional mortgages
n.a.
n.a.
n.a.
n.a.
Treasury yields at constant
maturities
1-month
3-month
6-month
1-year
2-year
3-year
5-year
7-year
10-year
20-year
1.01
1.09
1.26
1.41
1.51
1.65
1.94
2.16
2.33
2.62
1.00
1.06
1.21
1.33
1.49
1.63
1.94
2.17
2.34
2.65
Week Ended
Oct 13 Oct 6
52-Week
High
Low
Treasury yields (secondary market)
1.16
1.07
1.13
1.26
1.41
1.51
1.65
2.08
2.37
2.55
2.91
1.1700 1.1700 1.1900 0.3200
Offer
Treasury bill auction
1.015 0.980 1.300 0.240
1.090 1.050 1.180 0.340
1.240 1.190 1.240 0.470
4 weeks
13 weeks
26 weeks
0.21
0.32
0.47
0.64
0.82
0.97
1.25
1.54
1.76
52.17
1-month
3-month
6-month
0.99
1.07
1.24
0.98
1.04
1.19
1.05
1.11
1.24
0.21
0.32
0.46
TIPS
5-year
7-year
10-year
20-year
Long-term avg
0.19
0.37
0.45
0.74
0.78
0.21
0.40
0.49
0.78
0.81
0.29
0.49
0.63
0.97
0.97
-0.30
-0.13
0.08
0.48
0.51
Interest rate swaps
1-year
2-year
3-year
4-year
5-year
7-year
10-year
30-year
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1.00
1.09
1.17
1.25
1.33
1.48
1.65
2.00
0.97
1.05
1.12
1.19
1.26
1.41
1.59
1.94
Corporate bonds, Moody's seasoned
Aaa
Baa
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2,050
2,057
123.70
127.55
123.75
127.60
–42
Open
interest
81,803
–2.70 113,253
–2.60 58,926
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
March
May
14.42
14.48
14.42
14.51
14.11
14.22
14.18
14.28
–.23 428,054
–.20 126,032
March
27.00
27.00
27.00
26.99
–.01
Dec
March'18
68.54
68.01
68.88
68.40
67.53
67.29
67.53
67.32
152.00
151.80
154.10
154.05
150.30
150.55
152.35
152.35
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
Cotton (ICE-US)-50,000 lbs.; cents per lb.
Nov
Jan'18
2,538
–1.09 123,308
–.84 72,721
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
.75
.80
3,505
4,142
Interest Rate Futures
Dec
154-030 154-040
153-180 153-230
–9.0 741,404
March'18 152-180 152-260
152-140 152-170
–9.0
109
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
125-230 125-235
125-115 125-135
–9.0 3,104,153
March'18 125-115 125-125
125-035 125-035
–8.5
5,405
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
117-185 117-185
117-102 117-110
–7.5 2,963,981
March'18 117-072 117-072
117-072 117-042
–7.2
222
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec
107-255 107-255
107-222 107-225
–2.7 1,715,411
March'18 107-175 107-177
107-175 107-172
–3.5
1,351
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Oct
98.845
98.848
98.845
98.845
… 233,843
Jan'18
98.660
98.660
98.645
98.650 –.010 353,743
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Dec
101.813 101.828
101.500 101.547 –.313 28,792
1 Month Libor (CME)-$3,000,000; pts of 100%
Oct
...
...
... 98.7633
…
1,354
Eurodollar (CME)-$1,000,000; pts of 100%
Oct
98.6450 98.6450
98.6450 98.6450
… 148,603
Dec
98.5050 98.5050
98.4950 98.4950 –.0100 2,003,604
March'18 98.3750 98.3800
98.3500 98.3500 –.0250 1,325,187
Dec
98.1250 98.1250
98.0600 98.0650 –.0600 1,599,799
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Oct
Dec
.8909
.8965
.8953
.8980
.8906
.8929
Contract
High hilo
Low
Open
Settle
Chg
Open
interest
Canadian Dollar (CME)-CAD 100,000; $ per CAD
Oct
Dec
.8010
.8017
Oct
Dec
1.3292
1.3322
Dec
March'18
1.0302
1.0367
.8018
.8023
.7968
.7966
.7986 –.0028
275
.7989 –.0027 170,592
British Pound (CME)-£62,500; $ per £
1.3310
1.3336
1.3254
1.3249
Swiss Franc (CME)-CHF 125,000; $ per CHF
1.0318
1.0384
1.0277
1.0349
1.3280 –.0014
290
1.3270 –.0047 178,289
1.0287 –.0019
1.0358 –.0019
52,244
167
Australian Dollar (CME)-AUD 100,000; $ per AUD
.7880
.7882
.7877
.7872
.7868
.7860
Oct
Nov
Dec
Jan'18
March
June
.7888
.7886
.7884
.7880
.7872
.7860
.7865
.7842
.7837
.7839
.7834
.7859
.7865
.7846
.7842
.7840
.7836
.7831
–.0018
634
–.0035
555
–.0035 137,190
–.0036
288
–.0034
601
–.0034
242
Mexican Peso (CME)-MXN 500,000; $ per MXN
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Dec
.05216
Oct
Dec
1.1792
1.1851
.05231
.05168
.05188 –.00022 186,066
1.1782
1.1819
1.1800 –.0019
1,199
1.1831 –.0027 432,734
Euro (CME)-€125,000; $ per €
1.1816
1.1859
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
Dec
March'18
22906 s
22888 s
22821
22827
2557.50 s
2551.00
22825
22829
22898
22885
S&P 500 Index (CME)-$250 x index
2556.00
Dec
Mini S&P 500 (CME)-$50 x index
68 157,342
68
1,380
2556.20
3.40
Dec
2552.25 2557.75 s
2550.75 2556.25
March'18 2553.25 2558.00 s 2551.25 2556.50
Mini S&P Midcap 400 (CME)-$100 x index
Dec
1820.30 1826.20
1817.50 1819.30
Mini Nasdaq 100 (CME)-$20 x index
Dec
6101.5
6121.5 s
6098.0
6120.3
March'18 6117.0 6133.5 s
6111.5
6132.8
Mini Russell 2000 (ICE-US)-$100 x index
Dec
1506.20 1514.50
1501.10 1505.50
March'18 1501.10 1501.10
1500.90 1506.00
Mini Russell 1000 (ICE-US)-$100 x index
Dec
1418.00 1418.20 s
1415.80 1417.50
U.S. Dollar Index (ICE-US)-$1,000 x index
Dec
92.97
93.21
92.93
93.16
March'18
92.75
92.86
92.66
92.87
.8943 .0004
1,401
.8937 –.0026 246,898
52,099
3.50 3,043,181
3.50 28,257
.90
92,124
20.5 278,508
20.8
1,077
–.70
–.70
61,592
77
1.70
296
.23
.23
42,570
1,789
Source: SIX Financial Information
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
2.550 2.050 2.790
U.S. Corporate Indexes Bloomberg Barclays
5.6
2780.78
3.140 2.870 3.520
U.S. Corporate
4.0 Intermediate
2623.33
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
3.4 U.S. Aggregate
1942.58
2.670 2.300 3.010
1989.34
2.5
Mortgage-Backed
1957.87
2.0
Ginnie Mae (GNMA) 2.710 2.060 3.090
1166.30
2.6
Fannie mae (FNMA) 2.800 2.220 3.120
1796.34
2.7
Freddie Mac (FHLMC) 2.810 2.230 3.130
2.780 2.170 3.120
4.8 Muni Master
1.890 1.677 2.516
7-12 year
1.922 1.674 2.618
3846.70
9.4 Long term
4.130 4.110 4.710
522.86
567.97
4.3 Double-A-rated
2.600 2.230 2.870
365.68
3.420 3.220 3.870
410.13
6.3
12-22 year
2.329 2.114 3.047
395.08
6.5
22-plus year
2.837 2.567 3.622
6.3
717.95
Triple-B-rated
High Yield Bonds Merrill Lynch
7.3
416.91
High Yield Constrained 5.470 5.399 6.858
8.5 Triple-C-rated
417.22
5.3
Global Government J.P. Morgan†
10.303 9.584 13.189
542.87
1.1
Global Government 1.430 1.010 1.560
-0.3
2862.01
6.7
High Yield 100
5.154 4.948 6.448
751.26
Canada
2.100 1.370 2.190
378.53
7.5
Global High Yield Constrained 4.999 4.999 6.450
370.39
0.4
EMU§
1.104 0.673 1.363
305.86
6.6
Europe High Yield Constrained 2.153 2.153 3.814
710.98
0.6
France
0.830 0.400 1.210
U.S Agency Bloomberg Barclays
509.98
-0.9
Germany
0.430 0.050 0.620
1640.24
2.2
U.S Agency
1.940 1.320 1.960
287.36
-0.3
Japan
0.420 0.170 0.460
1466.72
1.4
10-20 years
1.780 1.140 1.780
562.65
-0.6
Netherlands
0.570 0.160 0.760
20-plus years
2.910 2.630 3.460
915.02
U.K.
1.630 1.340 1.790
2.780 2.410 3.090
805.91
7.5
3361.69
4.8 Yankee
2456.53
0.2
9.0 Emerging Markets ** 5.413 5.279 6.290
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Notes on data:
Federal-funds rate is an average for the seven days ended Wednesday, weighted according to rates
on broker trades; Commercial paper rates are discounted offer rates interpolated from sales by
discounted averages of dealer bid rates on nationally traded certificates of deposit; Discount window
primary credit rate is charged for discounts made and advances extended under the Federal
Reserve's primary credit discount window program; rate is average for seven days ended Wednesday;
Inflation-indexed long-term TIPS average is indexed and is based on the unweighted average bid
yields for all TIPS with remaining terms to maturity of 10 years or more; Swap rates are International
Swaps and Derivatives Association (ISDA(R)) mid-market par rates for a fixed-rate payer, who in
return receives three-month Libor, and are based on rates collected at 11:00 a.m. ET by Garban
Intercapital PLC; Source is Reuters; Moody's triple-AAA rates are averages of industrial bonds only;
Muni rates are Thursday quotes based on the Bond Buyer Index for general obligation, 20 years to
maturity, mixed quality debt; Mortgage rates are contract rates on commitments for fixed-rate first
mortgages
Sources: Federal Reserve; for additional information on these rate data and their derivation,
please see, www.federalreserve.gov/releases/h15/data.htm
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
1.375
2.250
0.050
2.050
3.406 3.461 3.865 2.960
3.429 3.483 3.899 2.990
30 days
60 days
Other short-term rates
Week
Latest ago
3.00
3.00
1.26
1.25
0.100
2.750
52-Week
high
low
3.00
1.380
2.204
0.843
1.801
1.913 t
2.756 t
l
1.938
1.949
1.748
37.5
43.7
l
2.803
2.749
2.271
45.0
52.6
46.9
France 2 -0.532 t
10 0.636 t
l
-0.519
-0.482
-202.0
-145.2
l
0.668
0.714
-0.609 -207.0
0.336
-166.9
-160.9
-146.6
Germany 2 -0.731 t
10 0.374 t
l
-0.724
-0.699
-222.5
-150.2
l
0.405
0.434
-0.659 -226.9
0.059 -193.2
-187.2
-174.3
Italy 2 -0.132 t
10 2.037 t
l
-0.125
-0.072
-0.078
-167.0
-162.6
-92.1
l
2.065
2.079
1.382
-26.8
-21.2
-42.0
Japan 2 -0.139 t
10 0.065 t
l
-0.138
-0.144
-0.267
-167.7
-163.9
-111.0
l
0.067
0.021
-0.054 -224.0
-221.0
-185.5
Spain 2 -0.298 t
10 1.570 t
l
-0.275
-0.301
-0.209
-183.6
-177.6
1.450
-105.2
l
1.580
1.603
1.047
-73.6
-69.7
-75.4
0.451 t
1.339 t
l
0.473
0.436
0.215
-102.8
-62.8
l
1.373
1.309
1.002 -96.7
-90.4
-79.9
1.750
U.K. 2
4.250
10
-108.7
2.25
1.30
90.5
Source: Tullett Prebon
Corporate Debt
Commercial paper (AA financial)
90 days
0.100
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
1.501
2.277
10
0.000
Year ago
l
Australia 2
1.000
Month ago
l
2.750
0.000
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
U.S. 2 1.538 s
10 2.306 s
2.750
30-year mortgage yields
0.62
in that same company’s share price.
Investment-grade spreads that tightened the most…
Libor
1.23666
1.35389
1.53316
1.80956
One month
Three month
Six month
One year
1.23722
1.35639
1.52489
1.80900
1.23889
1.35917
1.53433
1.82761
0.52400
0.87567
1.24267
1.55622
Euro Libor
-0.405
-0.375
-0.312
-0.230
One month
Three month
Six month
One year
-0.405
-0.376
-0.309
-0.221
-0.376
-0.319
-0.212
-0.071
-0.405
-0.381
-0.312
-0.230
Euro interbank offered rate (Euribor)
-0.371
-0.329
-0.274
-0.182
One month
Three month
Six month
One year
Latest
-0.373
-0.329
-0.274
-0.176
Value
Traded
-0.366
-0.311
-0.204
-0.069
-0.375
-0.332
-0.275
-0.182
52-Week
High
Low
DTCC GCF Repo Index
Treasury
MBS
1.178 27.400 1.366 0.244
1.180 100.750 1.506 0.257
Open Implied
Settle Change Interest Rate
DTCC GCF Repo Index Futures
Eurodollars
1 month
3 month
6 month
2,101
126.45
130.05
Fannie Mae
n.a.
n.a.
State and local bonds
n.a.
2,095
126.10
130.05
0.500
Call money
Data are annualized on a 360-day basis. Treasury yields are per annum,
on actively traded noninflation and inflation-indexed issues that are
adjusted to constant maturities. Data are from weekly Federal Reserve
release H.15.
1.16
—52-WEEK—
High Low
Secondary market
Key Interest Rates
Week Ended
Oct 13 Oct 6
Week
Latest ago
U.S. government rates
1.75
Policy Rates
Euro zone
1.13
1.19
Prime rates
U.S.
Canada
Japan
—52-WEEK—
High Low
Overnight repurchase
U.S.
International rates
0.50
0.25
1.50
0.50
0.25
1.50
Switzerland
Britain
Australia
March'18
Dec
March'18
Chg
Global Government Bonds: Mapping Yields
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
Week
Latest ago
Settle
Broad Market Bloomberg Barclays
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
select 1-3,600-900 lbs.-u
Broilers, National comp wghtd-u,w
Butter,AA Chicago
Cheddar cheese,bbl,Chicago
Cheddar cheese,blk,Chicago
Milk,Nonfat dry,Chicago lb.
Cocoa,Ivory Coast-w
Coffee,Brazilian,Comp
Coffee,Colombian, NY
Eggs,large white,Chicago-u
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
Hogs,Iowa-So. Minnesota-u
Pork bellies,12-14 lb MidUS-u
Pork loins,13-19 lb MidUS-u
Steers,Tex.-Okla. Choice-u
Steers,feeder,Okla. City-u,w
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data
as of 10/13
Source: WSJ Market Data Group
Inflation
Contract
High hilo
Low
Open
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Corn (CBT)-5,000 bu.; cents per bu.
Copper-High (CMX)-25,000 lbs.; $ per lb.
Oct
Dec
Contract
High hilo
Low
WSJ.com/commodities
Treasury Oct
Treasury Nov
Treasury Dec
98.880 -0.010 5025 1.120
98.870 -0.010 5548 1.130
98.725 -0.015 1976 1.275
Notes on data:
U.S. prime rate is the base rate on corporate
loans posted by at least 70% of the 10 largest
U.S. banks, and is effective June 15, 2017. Other
prime rates aren’t directly comparable; lending
practices vary widely by location; Discount rate
is effective June 15, 2017. DTCC GCF Repo Index
is Depository Trust & Clearing Corp.'s weighted
average for overnight trades in applicable
CUSIPs. Value traded is in billions of U.S. dollars.
Federal-funds rates are Tullett Prebon rates as
of 5:30 p.m. ET. Futures on the DTCC GCF Repo
Index are traded on NYSE Liffe US.
Sources: Federal Reserve; Bureau of Labor
Statistics; DTCC; SIX Financial Information;
General Electric Capital Corp.; Tullett Prebon
Information, Ltd.
Issuer
Symbol Coupon (%)
JPMorgan Chase
Pitney Bowes
Societe Generale
Ing Groep
JPM
Standard Chartered
Credit Agricole S.A.
STANLN
PBI
SOCGEN
INTNED
ACAFP
Maturity
Current
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
7.900 April 30, ’49
4.625 March 15, ’24
7.875 Dec. 18, ’49
6.000 April 16, ’49
–88 –31
310 –31
241 –31
124 –18
n.a.
361
275
n.a.
97.84
13.73
...
...
7.500
7.875
257 –17
259 –15
276
275
...
...
73.93
…
23.36
64.63
–1.61
…
1.65
–0.51
45.76
…
49.34
...
–0.26
…
0.22
...
April 2, ’49
Jan. 23, ’49
2.07
–1.08
...
...
...
...
…And spreads that widened the most
Omnicom
Pacific Gas And Electric
General Electric
Cardinal Health
OMC
General Motors
Discover Bank*
HSBC Holdings
Toyota Motor Credit
GM
PCG
GE
CAH
DFS
HSBC
TOYOTA
4.450
3.500
4.125
3.079
Aug. 15, ’20
Oct. 1, ’20
Oct. 9, ’42
June 15, ’24
52
57
94
88
21
9
8
n.a.
37
n.a.
n.a.
5.000
April 1, ’35
3.100
June 4, ’20
5.250 March 14, ’44
2.150 Sept. 8, ’22
191
49
137
40
7
6
6
6
186
49
128
36
13
High-yield issues with the biggest price increases…
Issuer
Symbol
Ruby Tuesday
Concordia International
Rite Aid
Community Health Systems
RT
Freeport–McMoran
First Quantum Minerals
L Brands
Weatherford International
FCX
CXRCN
RAD
CYH
FMCN
LB
WFT
Coupon (%)
7.625
9.000
7.700
8.000
Maturity
Bond Price as % of face value
Current
One-day change
3.56
Last week
Stock Performance
Close ($)
% chg
May 15, ’20
April 1, ’22
Feb. 15, ’27
Nov. 15, ’19
102.563
80.000
82.750
96.500
1.50
1.50
1.38
n.a.
n.a.
88.500
96.750
2.36
...
1.86
5.90
18.59
...
6.90
2.25
4.000 Nov. 14, ’21
7.000 Feb. 15, ’21
6.750
July 1, ’36
5.125 Sept. 15, ’20
102.100
104.910
98.500
99.500
1.35
1.29
1.25
1.25
100.750
103.750
97.750
n.a.
15.27
...
41.28
3.87
3.53
...
–1.34
–0.51
107.250
75.750
97.498
103.188
52.73
2.00
...
47.41
0.59
–2.91
...
–2.41
82.125
69.188
105.719
108.970
…
...
42.53
75.19
…
...
0.47
0.82
…And with the biggest price decreases
Beacon Roofing Supply
Windstream Services
Bombardier
Andeavor Logistics
BECN
Endo Dac
Intelsat Luxembourg
Aramark Services
HCA
ENDP
WIN
BBDBCN
ANDX
INTEL
ARMK
HCA
6.375
6.375
6.125
6.125
Oct. 1, ’23
Aug. 1, ’23
Jan. 15, ’23
Oct. 15, ’21
100.125 –7.25
73.250
95.023
101.875
6.000
8.125
4.750
5.875
July 15, ’23
June 1, ’23
June 1, ’26
May 1, ’23
80.250
70.000
105.000
107.250
–2.00
–1.68
–1.50
–1.00
–1.00
–0.88
–0.88
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 17, 2017 | B9
BIGGEST 1,000 STOCKS
How to Read the Stock Tables
The following explanations apply to NYSE,
NYSE Arca, NYSE MKT and Nasdaq Stock
Market listed securities. Prices are composite
quotations that include primary market trades
as well as trades reported by Nasdaq OMX
BXSM (formerly Boston), Chicago Stock
Exchange, CBOE, National Stock Exchange, ISE
and BATS.
The list comprises the 1,000 largest
companies based on market capitalization.
Underlined quotations are those stocks with
large changes in volume compared with the
issue’s average trading volume.
Boldfaced quotations highlight those issues
whose price changed by 5% or more if their
previous closing price was $2 or higher.
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most recent
four quarters.
FD-First day of trading.
h-Does not meet continued listing
standards
lf-Late filing
q-Temporary exemption from Nasdaq
requirements.
t-NYSE bankruptcy
v-Trading halted on primary market.
vj-In bankruptcy or receivership or
being reorganized under the
Bankruptcy Code, or securities
assumed by such companies.
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Monday, October 16, 2017
Net
Sym Close Chg
Stock
NYSE
ABB
ABB 24.97
AES
AES 11.27
Aflac
AFL 84.18
AT&T
T
36.17
AbbottLabs ABT 54.63
AbbVie
ABBV 91.04
Accenture ACN 139.09
AcuityBrands AYI 164.89
Adient
ADNT 85.07
AdvanceAuto AAP 86.01
AdvSemiEngg ASX 6.38
Aegon
AEG 5.75
s AerCap
AER 52.44
Aetna
AET 151.44
AffiliatedMgrs AMG 195.30
AgilentTechs A
66.91
AgnicoEagle AEM 45.52
Agrium
AGU 108.77
AirProducts APD 153.22
AlaskaAir ALK 80.47
s Albemarle ALB 140.16
Alcoa
AA 48.24
s AlexandriaRealEst ARE 123.50
Alibaba
BABA 179.56
Alleghany Y
551.61
Allegion
ALLE 88.14
Allergan
AGN 198.41
AllianceData ADS 228.77
AllianceBernstein AB 25.00
AlliantEnergy LNT 43.12
Allstate
ALL 92.46
s AllyFinancial ALLY 24.55
t AlticeUSA ATUS 24.60
Altria
MO 65.37
AlumofChina ACH 22.98
Ambev
ABEV 6.84
s Ameren
AEE 60.64
AmericaMovil AMX 17.95
AmericaMovil A AMOV 17.70
AmCampus ACC 44.11
AEP
AEP 73.12
s AmericanExpress AXP 91.96
AmericanFin AFG 104.48
AIG
AIG 63.98
AmerTowerREIT AMT 139.59
AmerWaterWorks AWK 85.21
Amerigas APU 44.75
s Ameriprise AMP 153.39
AmerisourceBrgn ABC 79.00
s Ametek
AME 67.77
Amphenol APH 86.94
AnadarkoPetrol APC 48.45
Andeavor ANDV 103.82
AB InBev BUD 125.72
AnnalyCap NLY 12.26
AnteroMidstream AM 30.42
AnteroResources AR 19.56
Anthem
ANTM 183.76
s Aon
AON 149.95
Apache
APA 42.73
ApartmtInv AIV 44.25
ApolloGlobalMgmt APO 31.38
AquaAmerica WTR 34.90
s Aramark
ARMK 42.53
s ArcelorMittal MT 28.99
ArcherDaniels ADM 43.70
Arconic
ARNC 27.17
AristaNetworks ANET 188.79
ArrowElec ARW 83.06
AstraZeneca AZN 34.65
Athene
ATH 54.79
AtmosEnergy ATO 86.25
Autohome ATHM 60.93
Autoliv
ALV 126.80
AutoZone AZO 598.55
Avalonbay AVB 179.20
Avangrid
AGR 47.78
s AveryDennison AVY 102.18
AxaltaCoating AXTA 28.35
BB&T
BBT 47.03
BCE
BCE 46.98
-0.17
0.02
0.17
0.47
-0.02
0.37
-0.11
2.36
1.29
0.50
-0.01
0.03
0.09
-1.62
1.75
-0.08
-1.18
0.86
-0.24
-0.49
1.22
0.53
-0.16
1.11
3.89
-0.16
-7.11
-2.09
...
0.07
0.12
0.39
0.02
0.32
0.39
-0.14
0.23
-0.05
-0.07
-0.89
-0.04
-0.90
0.23
0.82
-0.38
0.19
-0.21
0.48
-0.44
0.57
-0.26
0.66
-1.55
0.36
0.04
-0.69
-0.53
-0.07
0.57
1.13
-0.41
0.25
0.09
0.20
-0.36
-0.30
0.01
-2.35
0.09
0.04
0.21
-0.04
0.47
0.83
-0.61
-1.40
-0.21
0.24
0.08
0.33
-0.37
Net
Sym Close Chg
Stock
BHPBilliton BHP 42.65 0.45
BHPBilliton BBL 37.76 0.46
BP
BP 39.19 0.09
BRF
BRFS 14.27 -0.50
BT Group BT 18.40 -0.19
BWX Tech BWXT 59.55 0.36
BakerHughes BHGE 33.70 -0.03
Ball
BLL 42.19 -0.16
BancoBilbaoViz BBVA 8.51 -0.17
BancodeChile BCH 94.22 1.25
s BancoMacro BMA 127.09 0.29
s BcoSantChile BSAC 31.52 0.31
BancoSantander SAN 6.52 -0.01
BanColombia CIB 43.43 -1.37
s BankofAmerica BAC 26.24 0.41
BankofMontreal BMO 77.90 -0.23
BankNY Mellon BK 54.71 0.04
BkNovaScotia BNS 64.45 -0.15
Barclays
BCS 10.03 -0.12
Bard CR
BCR 323.28 -0.10
BarrickGold ABX 16.24 -0.43
BaxterIntl BAX 63.65 0.83
BectonDickinson BDX 200.82 -0.61
Berkley
WRB 68.21 0.80
s BerkHathwy A BRK.A 2819601110.00
s BerkHathwy B BRK.B 187.96 0.59
BerryGlobal BERY 58.92 -0.14
BestBuy
BBY 54.91 -0.19
Bio-RadLab A BIO 222.96 -0.15
Bio-RadLab B BIO.B222.85 -5.16
BlackKnight BKI 46.85 0.05
BlackBerry BB 11.37 -0.20
BlackRock BLK 477.96 2.47
BlackstoneGroup BX 33.26 0.33
BoardwalkPipe BWP 14.89 -0.06
Boeing
BA 259.75 -0.99
BoozAllen BAH 38.11 -0.45
BorgWarner BWA 52.17 1.04
BostonProperties BXP 128.38 0.09
BostonScientific BSX 29.16 -0.28
s Braskem
BAK 29.40 0.36
Bristol-Myers BMY 63.65 -1.64
BritishAmTob BTI 64.38 -0.10
BrixmorProp BRX 19.01 -0.07
s BroadridgeFinl BR 83.10 0.51
s BrookfieldMgt BAM 42.63 0.10
BrookfieldInfr BIP 43.63 0.46
Brown&Brown BRO 48.97 -0.42
Brown-Forman A BF.A 56.18 0.08
Brown-Forman B BF.B 55.42 0.17
BuckeyePtrs BPL 55.04 -0.89
Bunge
BG 70.78 -1.71
BurlingtonStores BURL 88.43 -0.67
CBD Pao
CBD 24.25 -0.36
CBRE Group CBG 39.52 -0.07
CBS B
CBS 56.90 -0.10
s CF Industries CF 36.89 0.09
CGI Group GIB 52.84 -0.46
CIT Group CIT 49.20
...
CMS Energy CMS 47.41 -0.13
CNA Fin
CNA 50.63 -0.06
CNOOC
CEO 129.47 0.77
CPFLEnergia CPL 17.23 -0.11
CRH
CRH 36.24 -0.22
CVS Health CVS 72.44 -0.16
CabotOil
COG 25.69 -0.31
CamdenProperty CPT 93.78 -0.33
CampbellSoup CPB 46.65 0.47
CIBC
CM 89.67 -0.27
CanNtlRlwy CNI 80.23 -0.56
CanNaturalRes CNQ 33.17 0.17
CanPacRlwy CP 168.46 -0.09
Canon
CAJ 35.77 0.01
CapitalOne COF 86.85 1.49
CardinalHealth CAH 64.63 -0.33
Carlisle
CSL 99.63 0.07
CarMax
KMX 75.46 0.02
Carnival
CCL 68.24 0.30
Carnival
CUK 67.91 0.12
s Caterpillar CAT 131.47 0.76
s Celanese A CE 107.10 -0.25
Cemex
CX
7.81 -0.21
CenovusEnergy CVE 9.73 0.01
Centene
CNC 90.92 0.36
Stock
Net
Sym Close Chg
CenterPointEner CNP 29.46
CentraisElBras EBR 6.49
CenturyLink CTL 19.76
s Chemours CC 57.01
s Chevron
CVX 120.13
ChinaEastrnAir CEA 25.46
ChinaLifeIns LFC 15.43
ChinaMobile CHL 50.57
ChinaPetrol SNP 75.36
ChinaSoAirlines ZNH 35.91
ChinaTelecom CHA 52.70
ChinaUnicom CHU 14.46
Chipotle
CMG 320.39
s Chubb
CB 150.32
ChunghwaTelecom CHT 34.11
Church&Dwight CHD 47.86
Cigna
CI 184.99
CimarexEnergy XEC 115.88
Citigroup
C
71.77
CitizensFin CFG 37.05
Clorox
CLX 131.81
Coach
COH 39.32
Coca-Cola KO 46.62
Coca-Cola Euro CCE 42.00
Coca-Cola Femsa KOF 70.71
Colgate-Palmolive CL 75.75
ColonyNorthStar CLNS 12.54
Comerica
CMA 75.34
SABESP
SBS 9.99
ConagraBrands CAG 34.50
ConchoRscs CXO 133.27
ConocoPhillips COP 49.72
ConEd
ED 82.85
ConstBrands A STZ 210.45
ContinentalRscs CLR 37.42
Cooper
COO 236.95
Corning
GLW 29.89
Coty
COTY 16.83
Credicorp
BAP 208.34
CreditSuisse CS 15.91
CrestwoodEquity CEQP 24.20
CrownCastle CCI 101.85
CrownHoldings CCK 60.06
Cullen/Frost CFR 97.12
s Cummins
CMI 174.13
DTE Energy DTE 109.63
DXC Tech DXC 91.49
Danaher
DHR 86.13
Darden
DRI 80.20
DaVita
DVA 56.93
Deere
DE 127.72
s DellTechnologies DVMT 81.10
DelphiAutomotive DLPH 97.98
DeltaAir
DAL 53.62
DeutscheBank DB 16.72
DevonEnergy DVN 35.85
Diageo
DEO 135.48
DigitalRealty DLR 121.74
DiscoverFinSvcs DFS 65.35
Disney
DIS 98.13
DolbyLab
DLB 59.48
DollarGeneral DG 82.12
DominionEner D
79.03
Domino's
DPZ 193.19
Donaldson DCI 46.91
s DouglasEmmett DEI 40.87
Dover
DOV 94.77
DowDuPont DWDP 70.93
DrPepperSnap DPS 89.63
DrReddy'sLab RDY 36.62
DukeEnergy DUK 87.13
DukeRealty DRE 28.94
ENI
E
33.07
EOG Rscs EOG 97.21
EQT
EQT 62.56
EQT Midstream EQM 74.67
EastmanChem EMN 87.87
Eaton
ETN 79.23
EatonVance EV 51.10
Ecolab
ECL 134.45
Ecopetrol
EC
9.83
EdisonInt
EIX 77.64
EdwardsLife EW 108.52
s EmersonElectric EMR 64.44
0.10
-0.12
-0.49
0.97
0.97
0.06
-0.11
-0.03
0.88
0.02
-0.50
0.04
-6.06
1.48
-0.13
-0.10
-1.16
1.02
-0.34
0.07
0.52
-0.25
0.44
0.11
-1.46
-0.24
0.03
-0.21
-0.27
0.17
-0.12
0.32
-0.23
1.89
0.22
0.95
0.15
-0.23
-0.32
0.08
-0.10
-0.65
-0.64
1.00
1.51
-0.26
0.45
-0.71
0.78
2.20
-0.19
0.42
0.50
-0.34
0.14
-0.02
-0.34
-0.04
1.47
0.75
0.12
-0.45
0.41
0.21
0.46
0.12
0.29
-0.50
0.38
0.58
0.34
-0.09
0.16
0.76
-0.45
-0.32
-0.78
0.70
0.03
0.36
0.12
-0.35
0.27
0.47
New Highs and Lows | WSJ.com/newhighs
Monday, October 16, 2017
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg Stock
Ferro
NYSE highs - 198 FibriaCelulose
FidelityNtlInfo
9.03
AberdeenJapanEqu JEQ
15.50
AdamsDivEquityFd ADX
52.85
AerCap
AER
44.78
AirLease
AL
AlabamaPwrPfdA ALPpQ 26.44
Albemarle
ALB 141.31
AlexandriaRealEst ARE 124.49
24.73
AllyFinancial
ALLY
10.97
AlpineGlblDyn AGD
6.87
AlpnGlblPrProp AWP
61.04
Ameren
AEE
30.40
AmEqtyLf
AEL
93.35
AmericanExpress AXP
AmHomes4RentPfdG AMHpG 26.25
Ameriprise
AMP 153.99
67.78
Ametek
AME
Aon
AON 150.16
Aramark
ARMK 43.81
29.67
ArcelorMittal MT
ArtisanPtrsAsset APAM 35.25
14.47
AsiaPacificFund APB
AveryDennison AVY 102.23
22.00
BBVABancoFr BFR
BancoMacro
BMA 127.84
BcoSantChile BSAC 31.56
BankofAmWtA BAC.WS.A 14.20
26.33
BankofAmerica BAC
35.80
BenchmarkElec BHE
BerkHathwy A BRK.A 282880
BerkHathwy B BRK.B 188.62
53.60
Bitauto
BITA
15.53
BlkRkMunQlty BAF
10.55
BoulderGrowth BIF
28.31
BoydGaming
BYD
18.18
BrandywineRealty BDN
29.52
Braskem
BAK
BrightScholarEduc BEDU 28.18
83.10
BroadridgeFinl BR
BrookfieldMgt BAM 42.68
Buenaventura BVN
14.82
CACI Intl
CACI 144.65
37.29
CF Industries CF
24.59
CNO Financial CNO
25.95
CTS
CTS
50.98
CarpenterTech CRS
132.12
Caterpillar
CAT
109.11
Celanese A
CE
CharlesRiverLabs CRL 114.61
ChathamLodging CLDT 22.36
Chegg
CHGG 16.03
57.08
Chemours
CC
Chevron
CVX 120.89
23.94
ChinaYuchai
CYD
ChoiceHotels CHH
68.10
150.73
Chubb
CB
21.98
ChnStrPfInco RNP
43.01
Colfax
CFX
174.36
Cummins
CMI
113.81
CurtissWright CW
DellTechnologies DVMT 81.49
40.91
DouglasEmmett DEI
EPAM Systems EPAM 91.70
22.49
EtnVncTxAdvDiv EVT
64.92
EmersonElectric EMR
47.25
EmployersHldgs EIG
EnelAmericas ENIA 10.93
83.95
Entergy
ETR
EssentGroup ESNT 42.64
111.79
EsteeLauder
EL
8.65
Euronav
EURN
39.74
Exelon
EXC
ExtendedStayAmer STAY 20.95
95.07
FMC
FMC
FedAgriMtg C AGM 77.78
0.8
-0.1
0.2
0.2
0.3
0.9
-0.1
1.6
0.3
0.3
0.4
1.0
-1.0
-0.2
0.3
0.8
0.4
0.5
-1.2
-0.4
-0.3
0.2
-0.4
0.2
1.0
3.4
1.6
...
0.4
0.3
5.3
0.9
0.6
0.8
-0.3
1.2
5.3
0.6
0.2
1.9
-0.7
0.2
1.1
0.4
...
0.6
-0.2
1.0
-0.6
3.0
1.7
0.8
2.8
0.4
1.0
0.1
1.3
0.9
0.3
0.5
0.3
0.2
0.2
0.7
0.7
2.2
1.4
2.2
0.3
4.2
1.1
-0.3
1.4
-0.7
58.com
FortressTransport
Generac
GenAmInv
GeneralCable
GettyRealty
Graco
GuggEnhEquFd
HFF
Harsco
HawaiianElec
DR Horton
ITT
IndependenceHldg
Ingevity
Insperity
IntegerHoldings
IntlFlavors
InvescoMtg
JPMorganWt
JPMorganChase
JohnBeanTech
JupaiHoldings
KBR
Kadant
Kaman
Kemet
Kemper
Kraton
KronosWorldwide
Kyocera
LCI Inds
LambWeston
LazardGlblFd
LibertyAllStar
LincolnNatlWt
MGIC Investment
MSCI
MVC Capital
MaxarTech
McDonalds
Medifast
MetLife
MettlerToledo
Moody's
Moog B
MS India
MS Asia
MyersIndustries
NL Industries
NRG Energy
NamTaiProperty
NationstarMtg
NorthstarRltyEur
NovoNordisk
NuvCoreEqAlpha
NuvDow30Dyn
NuvMtgOppTermFd
NuvTaxAdDivGr
OasisMidstream
Oi
OmnovaSol
Orix
OrmatTech
PaycomSoftware
PebblebrookHotel
PA REIT PfdD
Pentair
PrefApartment
Primerica
PutnmHiInco
PzenaInvtMgmt
QuintilesIMS
RH
FOE
FBR
FIS
WUBA
FTAI
GNRC
GAM
BGC
GTY
GGG
GPM
HF
HSC
HE
DHI
ITT
IHC
NGVT
NSP
ITGR
IFF
IVR
JPM.WS
JPM
JBT
JP
KBR
KAI
KAMN
KEM
KMPR
KRA
KRO
KYO
LCII
LW
LGI
USA
LNC.WS
MTG
MSCI
MVC
MAXR
MCD
MED
MET
MTD
MCO
MOG.B
IIF
APF
MYE
NL
NRG
NTP
NSM
NRE
NVO
JCE
DIAX
JLS
JTD
OMP
OIBR.C
OMN
IX
ORA
PAYC
PEB
PEIpD
PNR
APTS
PRI
PCF
PZN
Q
RH
23.60
16.93
95.27
69.47
18.54
50.99
36.47
22.50
29.78
127.14
8.80
43.01
22.00
34.90
41.61
47.19
27.95
69.40
93.95
54.85
149.84
17.74
56.67
97.95
104.90
24.19
18.55
101.45
56.54
26.80
58.90
42.27
25.83
66.00
121.85
50.82
17.18
6.18
73.50
13.20
124.51
10.48
61.04
165.74
63.95
53.38
668.75
144.84
88.71
36.78
18.05
22.60
11.10
26.68
12.55
20.20
13.88
49.85
15.78
17.28
25.90
16.97
18.24
9.71
11.60
89.44
63.68
80.07
37.63
25.37
71.14
20.28
89.30
9.00
12.02
100.57
83.57
0.8
3.7
0.3
1.5
1.4
0.6
...
1.4
-0.1
1.4
0.3
1.6
1.9
1.0
0.1
1.1
3.1
0.5
0.1
0.4
1.1
0.8
3.7
2.1
0.2
17.6
3.6
1.2
-0.2
0.2
2.4
-0.2
2.0
...
1.0
1.4
0.4
0.2
4.3
1.2
1.1
-0.1
3.0
-0.2
1.6
0.3
1.3
0.4
0.5
0.3
0.4
-0.9
7.9
2.1
1.6
-3.0
0.6
3.8
0.4
0.2
0.4
0.5
-1.2
2.3
-3.5
-0.4
0.9
-1.1
0.1
0.2
1.6
1.7
2.2
0.3
2.0
-0.5
-0.6
52-Wk %
Sym Hi/Lo Chg
ReinsuranceGrp RGA
RestaurantBrands QSR
RioTinto
RIO
Rockwell
ROK
RogersComm B RCI
Rogers
ROG
Rollins
ROL
RoyceGlbValueTr RGT
SJW Group
SJW
SPX FLOW
FLOW
SafeBulkersPfdC SBpC
SafeBulkersPfdD SBpD
SafeguardSci SFE
SensataTech
ST
SimpsonMfg
SSD
SoCopper
SCCO
Square
SQ
Statoil
STO
Synnex
SNX
TAL Education TAL
TE Connectivity TEL
Ternium
TX
TIM Part
TSU
TRI Pointe
TPH
TableauSoftware DATA
TaiwanSemi
TSM
Terex
TEX
ThorIndustries THO
Torchmark
TMK
Tri-Continental TY
Tronox
TROX
TwoHarborsPfdB TWOpB
UMHPropPfdC UMHpC
Unitil
UTL
Unifirst
UNF
UnitedRentals URI
UrstadtBiddlePfdH UBPpH
Vedanta
VEDL
VersumMaterials VSM
VinaConcha
VCO
Vishay
VSH
VMware
VMW
VoyaAsiaPacHiDiv IAE
WNS
WNS
Wyndham
WYN
Xylem
XYL
Yirendai
YRD
144.32
68.40
50.77
187.29
54.24
139.74
48.29
10.66
62.99
42.54
24.17
24.10
14.35
49.27
50.18
44.15
33.30
20.58
134.51
36.16
88.39
33.39
19.42
14.74
78.41
40.92
46.80
131.24
82.08
26.00
27.22
26.38
28.35
52.55
158.70
146.67
26.67
20.96
40.46
37.95
21.10
115.37
11.06
38.12
110.74
66.28
51.40
0.2
1.0
...
0.3
-0.1
2.1
0.1
0.1
3.1
1.7
0.7
0.7
...
0.6
0.8
1.3
1.2
1.1
-0.3
2.6
0.6
-2.3
0.6
0.5
0.8
0.2
1.5
1.0
0.5
0.3
1.8
0.2
0.2
-0.7
0.1
1.1
-0.8
3.8
-1.9
0.5
-0.2
1.3
0.5
-0.4
-0.3
1.9
3.0
NYSE lows - 26
AdvantageOil AAV
AlticeUSA
ATUS
ClearwaterPaper CLW
Cloudera
CLDR
Volaris
VLRS
Dick's
DKS
EastmanKodakWt KODK.WS
EastmanKodak KODK
FootLocker
FL
GenesisEnergy GEL
HCP
HCP
J.Jill
JILL
Mallinckrodt
MNK
NaturalGrocers NGVC
NuSTAREnergy NS
NuSTAR GP
NSH
NuvHiIncmDec18 JHA
PG&E
PCG
PartyCity
PRTY
RAIT FinNt
RFT
RivernorthOppsRt RIVrw
Smart&FinalStores SFS
SocialCapHedWt IPOA.WS
Supervalu
SVU
3D Systems
DDD
WideOpenWest WOW
EnbridgeEnPtrs EEP 15.44
Enbridge
ENB 41.51
Encana
ECA 11.32
s EnelAmericas ENIA 10.90
EnelChile
ENIC 6.10
EnelGenChile EOCC 27.02
EnergyTrfrEquity ETE 17.75
EnergyTransfer ETP 18.30
EnLinkMidPtrs ENLK 16.37
s Entergy
ETR 83.41
EnterpriseProd EPD 26.33
Equifax
EFX 108.70
EquityLife ELS 86.82
EquityResdntl EQR 67.27
EssexProp ESS 261.02
s EsteeLauder EL 111.28
EverestRe RE 238.12
EversourceEner ES 61.20
s Exelon
EXC 39.67
ExtraSpaceSt EXR 81.87
ExxonMobil XOM 82.81
s FMC
FMC 95.01
FactSet
FDS 177.76
FederalRealty FRT 128.81
FedEx
FDX 221.35
Ferrari
RACE 116.81
FiatChrysler FCAU 17.67
s FibriaCelulose FBR 16.92
FidelityNatlFin FNF 34.61
FNFV Group FNFV 18.30
s FidelityNtlInfo FIS 95.21
s 58.com
WUBA 68.47
FirstData
FDC 18.01
FirstRepBank FRC 96.66
FirstEnergy FE 32.06
FleetCorTech FLT 160.69
Flowserve FLS 44.64
Fluor
FLR 42.57
FomentoEconMex FMX 93.10
FordMotor F
12.12
ForestCIty A FCE.A 25.22
Fortis
FTS 36.87
Fortive
FTV 72.02
FortBrandsHome FBHS 66.30
Franco-Nevada FNV 79.77
FranklinRscs BEN 44.75
Freeport-McMoRan FCX 15.27
FreseniusMed FMS 48.09
GGP
GGP 21.45
Gallagher AJG 62.12
Gap
GPS 27.20
Gartner
IT 123.95
Gazit-Globe GZT 9.77
GeneralDynamics GD 213.44
GeneralElec GE 23.36
GeneralMills GIS 51.81
GeneralMotors GM 45.76
Genpact
G
29.62
GenuineParts GPC 96.01
Gerdau
GGB 3.57
Gildan
GIL 30.97
GlaxoSmithKline GSK 40.86
GlobalPayments GPN 99.34
GoDaddy
GDDY 43.87
Goldcorp
GG 13.06
GoldmanSachs GS 242.41
s Graco
GGG 127.13
Grainger
GWW 182.36
GreatPlainsEner GXP 31.87
GpoAvalAcciones AVAL 8.96
GpFinSantandMex BSMX 9.28
GrupoTelevisa TV 23.17
GuidewireSoftware GWRE 78.16
HCA Healthcare HCA 75.19
t HCP
HCP 26.22
HDFC Bank HDB 96.53
HP
HPQ 21.79
HSBC
HSBC 49.34
Halliburton HAL 44.61
Hanesbrands HBI 23.39
HarleyDavidson HOG 46.57
Harris
HRS 135.90
HartfordFinl HIG 56.08
HealthcareAmer HTA 29.80
Heico
HEI 89.79
Heico A
HEI.A 75.15
Herbalife
HLF 78.76
Hershey
HSY 110.94
Hess
HES 46.04
HewlettPackard HPE 14.86
Hilton
HLT 71.13
HollyFrontier HFC 36.09
HomeDepot HD 164.22
HondaMotor HMC 30.41
Honeywell HON 143.75
HormelFoods HRL 31.52
s DR Horton DHI 41.37
HostHotels HST 19.40
HuanengPower HNP 25.86
Hubbell
HUBB 119.74
Humana
HUM 237.17
HuntingtonIngalls HII 235.93
Huntsman HUN 29.09
HyattHotels H
61.49
ICICI Bank IBN 8.51
ING Groep ING 18.37
Invesco
IVZ 36.32
IDEX
IEX 125.06
5.38 -0.9
24.30 0.1
43.20 -0.9
15.13 -2.2
10.94 -2.3
24.52 -0.7
0.04 -28.6
6.45 -1.5
30.91 -2.2
23.95 -0.8
26.18 -0.6
4.75 -4.1
32.13 -3.0
5.14 -9.3
37.21 -1.3
19.15 -1.5
9.96 -0.2
49.83 -7.4
11.75 -2.1
17.02 -5.1
0.26 -11.6
6.45 -7.6
1.80 -0.6
18.59 -6.9
11.61 -2.8
14.22 -1.3
-0.26
0.02
-0.09
0.23
...
0.16
-0.25
-0.09
-0.26
1.12
-0.06
-0.80
-1.00
-0.22
-0.80
0.28
-2.39
-0.45
0.43
-0.84
0.40
1.29
0.35
-0.87
-0.87
1.85
-0.08
0.60
0.54
0.05
0.25
1.02
0.39
1.69
-0.43
0.07
0.26
-0.04
-0.92
0.07
-0.20
0.24
-0.33
0.06
-1.00
0.11
0.52
0.05
-0.21
0.10
-0.05
-0.29
0.08
0.10
0.38
0.28
-0.12
0.08
0.15
-0.01
-0.04
-0.15
-0.30
-0.36
-0.34
3.88
1.70
1.31
0.08
-0.06
-0.21
-0.13
-0.14
0.61
-0.15
-2.13
0.08
0.11
-0.11
-0.34
-0.05
-0.66
0.09
-0.03
2.68
1.70
1.09
0.87
1.05
-0.03
-0.03
-0.29
-0.25
0.15
0.38
-0.33
0.03
-0.11
-0.05
1.69
-0.56
1.53
-0.23
0.07
-0.06
-0.10
0.17
0.54
Net
Sym Close Chg
Stock
IllinoisToolWks ITW 153.41
Infosys
INFY 14.62
Ingersoll-Rand IR
91.30
Ingredion
INGR 124.29
ICE
ICE 68.40
InterContinentl IHG 54.32
IBM
IBM 146.83
s IntlFlavors IFF 149.78
IntlPaper
IP
57.72
Interpublic IPG 20.67
InvitationHomes INVH 22.64
IronMountain IRM 39.81
IsraelChemicals ICL
4.47
ItauUnibanco ITUB 13.99
s JPMorganChase JPM 97.84
JacobsEngineering JEC 59.00
JamesHardie JHX 14.03
JanusHenderson JHG 35.22
J&J
JNJ 136.12
JohnsonControls JCI 41.75
JonesLangLaSalle JLL 131.31
JuniperNetworks JNPR 26.04
KAR Auction KAR 47.95
KB Fin
KB 50.44
KKR
KKR 20.20
KT
KT 14.83
KSCitySouthern KSU 101.90
Kellogg
K
61.91
KeyCorp
KEY 18.43
KeysightTechs KEYS 42.50
KilroyRealty KRC 72.83
KimberlyClark KMB 118.22
KimcoRealty KIM 19.26
KinderMorgan KMI 18.81
Knight-Swift KNX 38.84
Kohl's
KSS 42.86
KoninklijkePhil PHG 40.54
KoreaElcPwr KEP 17.41
Kroger
KR 20.44
s Kyocera
KYO 65.86
LATAMAirlines LTM 13.88
L Brands
LB 41.28
LG Display LPL 12.94
LINE
LN 37.54
L3 Tech
LLL 186.35
LabCpAm LH 149.67
s LambWeston LW 50.69
LasVegasSands LVS 62.80
Lazard
LAZ 45.90
Lear
LEA 174.08
Leggett&Platt LEG 47.79
Leidos
LDOS 62.08
Lennar A
LEN 55.86
Lennar B
LEN.B 46.75
LennoxIntl LII 181.09
LeucadiaNatl LUK 25.71
Level3Comms LVLT 54.68
LibertyProperty LPT 41.82
EliLilly
LLY 85.95
LincolnNational LNC 75.45
LionsGate A LGF.A 30.38
LionsGate B LGF.B 29.55
LiveNationEnt LYV 41.78
LloydsBanking LYG 3.56
LockheedMartin LMT 318.94
Loews
L
49.06
Lowe's
LOW 81.20
LyondellBasell LYB 97.70
M&T Bank MTB 164.22
MGM Resorts MGM 29.69
MPLX
MPLX 34.65
s MSCI
MSCI123.48
Macerich
MAC 57.57
MacquarieInfr MIC 72.59
Macy's
M 19.89
MagellanMid MMP 69.16
MagnaIntl MGA 53.10
Manpower MAN 122.80
ManulifeFin MFC 20.77
MarathonOil MRO 13.85
MarathonPetrol MPC 55.72
Markel
MKL 1073.25
Marsh&McLennan MMC 83.91
MartinMarietta MLM 205.54
Masco
MAS 38.96
Mastercard MA 146.22
McCormick MKC 99.13
McCormickVtg MKC.V 98.82
s McDonalds MCD 165.01
McKesson MCK 146.61
Medtronic MDT 77.73
Merck
MRK 63.34
s MetLife
MET 52.87
s MettlerToledo MTD 666.98
MichaelKors KORS 48.62
MicroFocus MFGP 32.47
MidAmApt MAA 107.55
MitsubishiUFJ MTU 6.58
MizuhoFin MFG 3.63
MobileTeleSys MBT 10.53
MohawkIndustries MHK 257.18
MolsonCoors B TAP 82.75
Monsanto MON 122.42
s Moody's
MCO 144.75
MorganStanley MS 48.94
Mosaic
MOS 21.90
MotorolaSolutions MSI 89.36
s NRG Energy NRG 26.62
52-Wk %
Sym Hi/Lo Chg Stock
Stock
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in
the latest session. % CHG-Daily percentage change from the previous trading session.
Stock
Net
Sym Close Chg
Stock
iShCoreMSCIEmgMk IEMG
67.36
32.16
41.93
36.44
57.79
22.46
32.11
31.21
17.55
26.13
20.09
28.96
28.94
15.14
30.53
205.44
13.42
10.26
51.77
52.37
30.44
56.41
120.28
68.70
40.19
45.58
34.13
131.48
97.00
31.89
42.08
96.19
32.89
29.57
29.24
47.68
34.08
29.72
30.86
20.71
57.56
39.83
37.81
41.75
127.47
49.54
65.85
32.12
28.22
26.71
68.06
58.39
17.97
27.39
16.01
26.10
30.00
22.40
32.43
38.02
35.39
30.76
60.75
107.08
102.08
60.43
30.93
64.36
181.02
29.02
18.81
21.36
21.72
35.65
27.58
26.47
30.16
33.27
37.30
29.61
76.89
84.13
34.72
45.30
...
1.1
-0.2
-0.7
0.6
0.9
0.1
0.4
4.7
-0.1
...
1.1
...
0.7
0.8
0.4
26.8
...
0.8
0.1
0.1
3.8
-0.1
1.2
0.4
0.1
...
1.4
1.1
0.3
...
-1.4
0.1
...
...
0.3
-0.1
0.5
0.2
0.3
-0.2
1.0
...
-0.2
0.3
0.2
...
0.2
...
0.1
-0.1
-0.1
0.4
2.5
-0.6
0.8
0.2
-0.3
0.5
0.4
0.2
0.4
1.2
0.2
0.1
0.2
0.1
0.1
0.2
-0.5
0.2
0.3
1.0
...
-0.1
0.5
...
1.2
3.7
1.4
0.6
...
-0.1
...
iShCoreS&P500ETF IVV
iShS&PTotlUSStkMkt ITOT
iShCurHdgMSCIUS HAWX
iShCurHdgMSCIEAFE HSCZ
iShCurrHdMSCIJapan HEWJ
iShCurHdgMSCISwitz HEWL
iShUSBasicMaterial IYM
iShU.S.Technology IYW
iShEdgeMSCIIntVal IVLU
iShEdgeMSCIMinJapn JPMV
iShGlobal100 IOO
iShJPX-Nikkei400 JPXN
iShMSCIAllPeruCap EPU
iShMSCIBRICETF BKF
iShMSCIEmgMarkets EEM
iShMSCIEmgMktSC EEMS
iShMSCIGlblAgriPrd VEGI
iShMSCIHongKong EWH
iShMSCIJapanETF EWJ
iShMSCIJapanSC SCJ
iShMSCIKokusaiETF TOK
iShMSCIPacificxJp EPP
iShMSCITaiwanCap EWT
iShMSCIThailandCap THD
iShMSCIUSAESGSelct SUSA
iShMSCIWorldETF URTH
iShMorningstarLC JKD
iShRussell1000Gwth IWF
iShRussell1000ETF IWB
iShRussell3000ETF IWV
iShRussellMid-Cap IWR
iShRussellTop200Gr IWY
iShRussellTop200 IWL
iShS&P100
OEF
iShS&P500Growth IVW
iShGlobalTechETF IXN
iShGlobalMaterials MXI
iShNorthAmerTech IGM
iShDowJonesUS IYY
iShRussellMCGrowth IWP
JanusVelTailLC TRSK
HancockIndustrials JHMI
HancockLC
JHML
HancockTech JHMT
JPM DivRetEM JPEM
KraneEMCnsTech KEMQ
KraneMSCIChinaEnv KGRN
MadronaIntl
FWDI
MatlsSelSectorSPDR XLB
NationRiskBasedUS RBUS
OShFTSEAsiaPacQlty OASI
PIMCO DynMultEM MFEM
PIMCO DynMultUS MFUS
PwrShCEF Incm PCEF
PwrShContrarian CNTR
PwrShDBBaseMtls DBB
PwrShDynSemicon PSI
PwrShDynSoftware PSJ
PwrShDynLC Grwth PWB
PwrShIndia
PIN
PwrShS&PEM Mom EEMO
PwrShRussMC EW EQWM
PwrShS&P500HiBeta SPHB
PwrShS&P600LowVol XSLV
ProShHdgReplic HDG
ProShS&P500xFin SPXN
ProShShtVIXST SVXY
ProShrUlBscMtls UYM
ProShrUltraDow30 DDM
ProShUltMSCIEM EET
ProShrUltraJapan EZJ
ProShrUltraQQQ QLD
ProShrUltraS&P SSO
ProShrUlSemi USD
ProShrUlTech ROM
ProShUltDow30 UDOW
ProShUltS&P500 UPRO
REXGoldHdgS&P500 GHS
RivFrDynUSFlex RFFC
SPDRFactSetInnTech XITK
SPDRMSCIJapanStrat QJPN
SPDR NYSE Tech XNTK
SPDR S&P500MidGr MDYG
56.33
58.35
38.22
257.24
58.61
26.66
30.31
31.82
27.48
99.18
154.82
25.85
66.39
90.20
62.56
41.68
44.84
46.82
51.32
28.75
25.37
57.69
76.06
63.39
47.48
37.93
89.87
106.81
85.58
153.43
127.98
142.29
151.72
200.56
69.38
58.71
113.26
146.50
147.40
67.54
160.85
128.15
115.83
30.10
33.54
33.37
39.53
58.38
25.37
25.47
30.81
58.64
25.29
29.93
25.50
26.20
24.22
31.41
19.07
52.00
64.80
39.98
25.22
21.07
45.86
40.31
46.95
45.14
51.86
105.52
69.66
113.44
90.84
120.24
67.22
99.96
111.20
80.03
75.16
122.38
32.86
31.28
79.99
76.79
81.18
150.48
-0.1
0.2
-0.1
0.2
0.2
0.1
0.2
0.7
0.4
-0.2
0.4
0.2
0.6
0.3
0.4
0.8
0.4
-0.1
-0.2
...
0.4
0.5
0.1
0.1
0.1
0.1
0.5
0.1
...
0.4
0.1
0.1
0.1
...
0.3
0.3
0.2
0.1
0.3
-0.1
0.2
...
0.1
0.2
0.1
0.1
0.1
0.1
0.7
0.3
0.9
-0.1
...
0.7
1.0
0.1
0.2
3.1
0.4
0.6
-0.3
0.2
0.6
-0.2
0.2
0.6
...
...
0.3
1.7
-0.3
0.5
...
3.9
0.7
0.3
1.1
1.0
0.8
0.4
0.3
0.1
0.2
0.2
0.1
0.1
Dividend announcements from October 16.
Company
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Increased
Ameren Corp
Bluerock Res Growth REIT
Mesabi Trust
Transmontaigne Partners
Western Gas Equity Ptrs
AEE
BRG
MSB
TLP
WGP
3.0 .4575 /.44
10.0 .0967 /.09667
11.2 .64 /.16
7.0 .755 /.74
5.5 .5375 /.5275
Q
M
Q
Q
Q
Dec29 /Dec13
Dec05 /Nov24
Nov20 /Oct30
Oct31 /Oct23
Nov22 /Nov02
Reduced
Bluerock Res Growth REIT
Starwood Waypoint Homes
BRG
SFR
10.0 .0967 /.09667 M
1.2 .11 /.22 Q
Nov03 /Oct25
Nov07 /Oct24
Funds and investment companies
Arrow Dow Jones Glbl Yd
Formula Folios Income ETF
Highland/iBoxx Sr Loan
Inspire Corp Bd Impact
OSh FTSE AsiaPac Qlty Div
O'Shares FTSE Russ Intl
O'Shares FTSE Russ SC Qu
OShs FTSE Eur Quality Div
OShs FTSE US Quality Div
Reaves Utility Fund
Reaves Utility Fund
GYLD
FFTI
SNLN
IBD
OASI
ONTL
OUSM
OEUR
OUSA
UTG
UTG
5.7
2.9
4.5
1.7
2.8
2.6
2.6
3.3
2.7
6.2
6.2
.0872
.0603
.06884
.0347
.06983
.05982
.05809
.06951
.06979
.16
.16
M
M
M
M
M
M
M
M
M
M
M
Oct23 /Oct17
Oct20 /Oct17
Oct31 /Oct16
Oct23 /Oct17
Oct20 /Oct17
Oct20 /Oct17
Oct20 /Oct17
Oct20 /Oct17
Oct20 /Oct17
Oct31 /Oct24
Nov30 /Nov17
Company
Symbol
Reaves Utility Fund
Stellus Capital Invt
Stellus Capital Invt
Stellus Capital Invt
UTG
SCM
SCM
SCM
Amount
Yld % New/Old Frq
6.2
9.6
9.6
9.6
.16
.1133
.1133
.1133
M
M
M
M
Payable /
Record
Dec29 /Dec15
Dec15 /Nov30
Nov15 /Oct31
Jan12 /Dec29
Stocks
Vince Holding
1:10
VNCE
/Oct24
Foreign
AEGON 6.375% Perp Cp Secs
AEGON 6.5% Perp Cap Secs
Fortis
Grupo Aval Acciones ADR
Grupo Aval Acciones ADR
Grupo Aval Acciones ADR
Grupo Aval Acciones ADR
Grupo Aval Acciones ADR
Grupo Aval Acciones ADR
Grupo Aval Acciones ADR
Tsakos Energy 8% Pfd B
Tsakos Energy Pfd C
AEH
AED
FTS
AVAL
AVAL
AVAL
AVAL
AVAL
AVAL
AVAL
TNPpB
TNPpC
6.2
6.2
3.7
4.5
4.5
4.5
4.5
4.5
4.5
4.5
7.8
8.6
.39844
.40625
.33955
.03338
.03338
.03338
.03338
.03338
.03338
.03338
.50
.5547
Q
Q
Q
M
M
M
M
M
Q
Q
Dec15 /Dec01
Dec15 /Dec01
Dec01 /Nov20
Feb09 /Jan31
Mar09 /Feb28
Nov09 /Oct31
Dec11 /Nov30
Jan10 /Dec29
Feb09 /Jan31
Mar09 /Feb28
Oct30 /Oct27
Oct30 /Oct25
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
-0.01
5.65
-1.09
0.34
-0.12
-0.17
0.03
-0.35
0.37
-0.60
0.97
-0.08
0.39
-0.23
0.75
-0.06
0.14
-2.25
-1.85
-0.62
0.24
1.79
-1.10
-0.51
-0.10
-0.22
0.04
0.03
-0.08
-0.03
-1.21
0.25
0.02
-0.06
-0.34
0.78
0.29
-4.29
0.14
2.03
1.76
-0.33
-0.16
-0.27
1.31
-0.90
0.03
1.01
0.36
-0.17
-0.11
1.12
0.95
-0.14
-0.74
0.90
-0.01
-0.03
-0.36
-0.47
-3.56
0.33
-0.11
-0.23
-0.29
-0.05
0.40
0.14
0.09
-0.92
0.11
0.10
0.31
-0.21
0.26
-0.31
-0.04
-1.00
0.04
0.47
-0.52
-0.12
-0.08
-0.03
1.01
0.31
0.82
0.03
-0.21
-0.44
0.13
0.30
-0.57
0.10
0.64
-0.20
0.01
0.04
0.53
-0.03
-0.06
0.06
1.67
...
-0.03
-0.38
-0.05
-0.18
Net
Sym Close Chg
Stock
SAP
SAP 111.84
S&P Global SPGI 162.46
SINOPECShanghai SHI 62.45
SK Telecom SKM 26.61
SLGreenRealty SLG 102.87
Salesforce.com CRM 97.15
Sanofi
SNY 49.63
Sasol
SSL 29.45
Scana
SCG 49.17
Schlumberger SLB 66.80
SchwabC
SCHW 44.47
ScottsMiracleGro SMG 99.75
SealedAir SEE 44.65
SemicondctrMfg SMI 6.59
SempraEnergy SRE 114.46
s SensataTech ST 49.25
ServiceCorp SCI 34.29
ServiceMaster SERV 46.56
ServiceNow NOW 121.40
ShawComm B SJR 21.99
SherwinWilliams SHW 384.07
ShinhanFin SHG 44.13
Shopify
SHOP 96.98
SimonProperty SPG 165.33
SmithAO
AOS 61.21
Smith&Nephew SNN 38.01
Smucker
SJM 105.96
Snap
SNAP 16.07
SnapOn
SNA 152.02
SOQUIMICH SQM 61.45
Sony
SNE 37.05
Southern
SO 51.14
s SoCopper SCCO 43.70
SouthwestAirlines LUV 58.88
SpectraEnerPtrs SEP 44.38
SpectrumBrands SPB 110.23
SpiritAeroSys SPR 79.60
Sprint
S
7.15
s Square
SQ 33.22
StanleyBlackDck SWK 158.65
StateStreet STT 98.54
s Statoil
STO 20.53
Steris
STE 90.67
STMicroelec STM 20.10
Stryker
SYK 147.29
SumitomoMits SMFG 7.94
SunCommunities SUI 88.00
SunLifeFinancial SLF 39.37
SuncorEnergy SU 33.63
SunTrustBanks STI 59.80
SynchronyFin SYF 31.50
Syngenta SYT 92.00
Sysco
SYY 54.75
s TAL Education TAL 36.10
s TE Connectivity TEL 88.27
Telus
TU 35.94
s Ternium
TX 31.66
s TIM Part
TSU 18.99
TJX
TJX 71.17
s TableauSoftware DATA 78.33
s TaiwanSemi TSM 40.89
TargaResources TRGP 45.69
Target
TGT 60.15
TataMotors TTM 33.28
TechnipFMC FTI 26.55
TeckRscsB TECK 23.00
TelecomArgentina TEO 31.35
TelecomItalia TI
9.05
TelecomItalia A TI.A 7.17
TeledyneTech TDY 161.95
Teleflex
TFX 239.03
TelefonicaBras VIV 16.06
Telefonica TEF 10.62
TelekmIndonesia TLK 32.54
Tenaris
TS 27.25
Teradyne
TER 38.63
TevaPharm TEVA 14.71
Textron
TXT 53.34
ThermoFisherSci TMO 191.28
ThomsonReuters TRI 47.28
s ThorIndustries THO 130.52
3M
MMM 218.72
Tiffany
TIF 94.69
TimeWarner TWX 101.12
Toll Bros
TOL 42.76
s Torchmark TMK 82.05
Toro
TTC 62.16
TorontoDomBk TD 56.75
Total
TOT 54.48
TotalSystem TSS 67.68
ToyotaMotor TM 123.42
TransCanada TRP 50.15
TransDigm TDG 263.62
TransUnion TRU 49.41
Travelers
TRV 128.82
TurkcellIletism TKC 9.22
TurquoiseHill TRQ 3.36
Twitter
TWTR 18.33
TylerTech TYL 179.58
TysonFoods TSN 70.55
UBS Group UBS 17.28
UDR
UDR 38.76
UGI
UGI 47.32
US Foods USFD 27.29
UltraparPart UGP 24.82
UnderArmour A UAA 16.25
UnderArmour C UA 14.98
Unilever
UN 61.18
52-Wk %
Sym Hi/Lo Chg Stock
SPDRS&PCapitalMkts KCE
SPDRS&P500Fossil SPYX
SPDRS&PGlbNatRes GNR
SPDR US LC Low Vol LGLV
SPDRSSgAGlbAll GAL
SPDRSSgAIncmAllctn INKM
SPDRSSgAMultiAsset RLY
SchwabEM Equity SCHE
SchwabFundEmgLrg FNDE
SchwabFundIntlSmCo FNDC
Schwab1000Index SCHK
SchwabUS BrdMkt SCHB
SchwabUS LC SCHX
SchwabUS LC Grw SCHG
SchwabUS LC Val SCHV
SPDR DJIA Tr DIA
SPDR MSCI exUS CWI
SPDREmMktSmlCp EWX
SPDR S&P 500 SPY
SPDR SP China GXC
SPDR SP EmAsPac GMF
TechSelectSector XLK
USCopperIndex CPER
VanEckAgribus MOO
VanEckGlblSpinoff SPUN
VanEckNDRCMGLg LFEQ
VanEckNatRscs HAP
VanEckOilRefin CRAK
VanEckRareEarth REMX
VanEckRussia RSX
VanEckRussiaSC RSXJ
VanEckSemiconduc SMH
VanEckVietnam VNM
VangdMatrls VAW
VangdInfoTech VGT
VangdSC Grwth VBK
VangdFTSE EM VWO
VangdFTSE Pac VPL
VangdGrowth VUG
VangdLC
VV
VangdMegaCap MGC
VangdMegaGrwth MGK
VangdS&P500 VOO
VangdS&P500 Grw VOOG
VangdSC
VB
VangdTotalStk VTI
VangdTotlWrld VT
VelocityShVIXShrt XIVH
WBITacticalLCV WBIF
WBITacticalRotatn WBIR
WBITacticalSMG WBIA
WisdTrEMxSOE XSOE
WisdTrEuropeHdgSM EUSC
WisdTrGlbxUSDiv DXUS
WisdTrGlbxUSQual DNL
WisdTrIntlHdgQual IHDG
WisdTrIntlSC DLS
WisdTrJpnCapGds DXJC
WisdTrJapanHdg DXJ
WisdTrJpnHlthCare DXJH
WisdTrJapanSC DFJ
WisdTrUSLCDivFd DLN
WisdTrUSTotalDivFd DTD
XtrkrsFTSEDevXus DEEF
XtrkrsJpnJPXNik400 JPN
XtrkrsMSCIAWxUS DBAW
XtrkrsMSCIAPxJapan DBAP
XtrkrsMSCIEAFE DBEF
XtrkrsMSCIEM DBEM
XtrkrsMSCIJapan DBJP
XtrkrsRussell1000 DEUS
YieldShHiIncome YYY
54.03
62.14
47.30
90.01
37.48
33.39
25.63
28.02
29.79
35.49
25.16
61.90
61.05
67.22
52.69
229.53
38.66
51.14
255.51
107.28
103.48
60.73
20.81
60.04
24.02
25.31
36.24
28.36
27.78
22.66
43.75
97.71
15.34
132.87
157.09
155.44
45.33
70.53
135.48
117.37
87.75
106.99
234.69
131.43
143.53
131.65
72.10
66.34
27.20
25.33
24.71
30.79
30.98
26.59
58.09
31.27
75.43
27.40
56.21
35.00
76.91
88.33
89.14
29.37
28.22
27.77
28.84
31.60
24.33
41.86
30.75
20.00
...
0.1
0.1
0.3
0.3
-0.1
0.1
...
-0.1
0.1
0.2
0.2
0.1
0.1
0.1
0.3
0.1
-0.1
0.1
0.6
0.5
0.4
3.5
0.1
-0.8
0.1
-0.1
-0.1
1.0
-0.1
0.4
0.5
0.2
-0.1
0.3
...
-0.1
0.3
0.1
0.1
0.2
0.1
0.2
0.2
...
0.1
...
1.3
0.2
0.1
0.4
0.1
0.2
2.4
0.1
0.1
0.1
1.2
0.7
0.9
0.2
0.2
...
0.4
0.4
0.2
0.2
0.2
0.1
0.7
-0.1
0.2
PathS&P500VIXMT VXZ
iPathS&P500VIXST VXX
-0.88
0.64
-0.83
0.34
-0.62
0.21
0.14
0.40
-0.68
-0.37
-0.26
0.16
0.10
0.16
-0.41
0.28
0.05
-0.59
-0.89
0.14
-1.77
-1.05
2.76
-0.98
0.05
-0.49
0.85
-0.43
0.01
1.55
0.23
0.20
0.54
-0.24
-0.30
4.38
0.06
0.03
0.41
-0.06
-0.72
0.22
1.18
0.12
0.60
0.12
-0.85
-0.26
-0.10
0.34
0.68
-0.08
0.30
0.90
0.53
-0.09
-0.73
0.11
-0.90
0.66
0.07
-1.54
-0.70
0.49
-0.11
0.07
-0.10
-0.12
-0.22
-1.02
0.32
-0.06
-0.20
...
-0.19
0.02
-0.27
0.08
-1.14
0.47
1.35
1.00
0.29
0.18
0.28
0.44
-0.40
-0.16
0.51
...
0.04
-0.02
-1.87
-0.23
2.15
-0.02
0.02
-0.30
0.07
0.34
...
-0.24
-0.08
0.33
0.03
0.06
0.03
-0.14
Net
Sym Close Chg
Stock
Unilever
UL 59.84
UnionPacific UNP 112.09
UnitedContinental UAL 66.95
UnitedMicro UMC 2.65
UPS B
UPS 118.34
s UnitedRentals URI 145.79
US Bancorp USB 54.26
US Steel
X
26.67
UnitedTech UTX 119.01
UnitedHealth UNH 193.20
UniversalHealthB UHS 105.60
UnumGroup UNM 52.42
VEREIT
VER 8.26
VF
VFC 64.09
Visa
V
108.30
VailResorts MTN 216.42
Vale
VALE 10.50
ValeroEnergy VLO 77.42
Vantiv
VNTV 69.81
VarianMed VAR 102.83
s Vedanta
VEDL 20.82
VeevaSystems VEEV 58.65
Ventas
VTR 63.14
Verizon
VZ 48.09
VistraEnergy VST 18.99
s VMware
VMW115.15
VornadoRealty VNO 78.93
VoyaFinancial VOYA 39.69
VulcanMaterials VMC 117.33
WABCO
WBC 149.73
WEC Energy WEC 65.03
W.P.Carey WPC 69.58
Wabtec
WAB 74.91
Wal-Mart WMT 85.74
WasteConnections WCN 69.51
WasteMgt WM 76.69
Waters
WAT 184.64
Watsco
WSO 159.46
Wayfair
W 69.73
WellCareHealth WCG 167.92
WellsFargo WFC 53.80
Welltower HCN 68.07
WestPharmSvcs WST 95.67
WestarEnergy WR 52.13
WesternGasEquity WGP 39.43
WesternGasPtrs WES 50.92
WesternUnion WU 19.76
WestlakeChem WLK 84.24
WestpacBanking WBK 26.06
WestRock WRK 59.13
Weyerhaeuser WY 35.02
WheatonPrecMetals WPM 20.00
Whirlpool WHR 176.77
Williams
WMB 29.94
WilliamsPartners WPZ 39.46
Wipro
WIT 5.46
WooriBank WF 46.24
s Wyndham WYN 110.02
XPO Logistics XPO 66.74
XcelEnergy XEL 48.49
Xerox
XRX 33.09
s Xylem
XYL 65.96
YPF
YPF 22.76
YumBrands YUM 76.21
YumChina YUMC 42.66
ZTO Express ZTO 15.29
ZayoGroup ZAYO 34.51
ZimmerBiomet ZBH 119.51
Zoetis
ZTS 65.71
DirexEM Bear3 EDZ
DirexMcBear3 MIDZ
DirexRussiaBr3 RUSS
DirexS&P500Br3 SPXS
DirexS&P500Br1 SPDN
DirexSemiBear3 SOXS
DirexTechBear3 TECS
iPathPBSofts GRWN
KraneMSCIChinaEnv KGRN
ProShShtDow30 DOG
ProShShtMSCI EM EUM
ProShShortQQQ PSQ
ProShShrtS&P500 SH
ProShUltVIXST UVXY
ProShUltShtDow30 SDOW
ProShUltProShS&P SPXU
ProShrUSBscMtls SMN
ProShrUSInd SIJ
ProShrUS MSCI Jpn EWV
ProShUltShtQQQ QID
ProShUltShtS&P500 SDS
ProShrUSSemi SSG
ProShrUSTech REW
ProShsVIXMTFut VIXM
ProShsVIXSTFut VIXY
SPDRPtfAggBd SPAB
SPDRPtfEM
SPEM
SPDRPortfolioLC SPLG
SPDRPtfLTCorpBd SPLB
SPDRPtfLgTermTrea SPTL
SPDRPtfMC
SPMD
SPDRS&P500Value SPYV
SPDRS&P500Growth SPYG
SPDRShtTermTrea SPTS
SPDRPtfSC
SPSM
SPDR Ptf TSM SPTM
US3xShrtOilFd USOD
VirtusEnhShrtUS VESH
9.79
15.37
21.92
34.57
32.10
18.44
8.24
20.62
25.22
16.15
18.38
37.27
31.64
16.08
24.77
13.12
14.12
18.48
29.00
14.76
45.14
11.87
18.60
23.67
28.78
28.86
37.49
29.94
28.10
36.14
32.26
29.42
31.50
29.37
29.38
31.72
17.81
23.89
...
-0.1
0.1
-0.4
-0.2
-1.5
-1.2
-0.6
0.3
-0.4
0.1
-0.3
-0.2
-3.5
-1.0
-0.4
0.3
-0.3
-1.0
-0.7
-0.3
-0.5
...
-1.5
-1.8
...
0.1
0.1
-0.2
...
-0.3
0.2
0.2
-0.1
-0.2
0.1
-2.8
...
NYSE American highs - 6
AberdChileFd
CentralSecs
CloughGlbEqFd
CloughGlblOpp
IssuerDirect
TransEnterix
CH
CET
GLQ
GLO
ISDR
TRXC
9.10
26.63
13.87
11.52
17.45
3.05
0.7
-0.1
-0.1
0.3
1.6
92.5
NYSE American lows - 8
BioTimeWt
BTX.WS
Daxor
DXR
Inuvo
INUV
NuverraEnvl
NES
ParamountGoldNV PZG
Pfenex
PFNX
VolitionRX
VNRX
VoltInfoSci
VISI
0.15
4.66
0.81
9.70
1.26
2.58
2.37
2.40
...
-6.0
2.2
-6.7
-3.1
-4.8
-2.1
-3.9
Nasdaq highs - 203
AGNC InvPfdC AGNCN
ALPS/DorseyMom SWIN
AdvAcceltrApp AAAP
AdvEnergyInds AEIS
AlignTech
ALGN
AmNtlBcsh
AMNB
AmerSoftware AMSWA
AmtechSystems ASYS
AppliedMaterials AMAT
AspenTech
AZPN
AudioCodes
AUDC
Autodesk
ADSK
BldrsAsia50ADS ADRA
BSB Bancorp BLMT
Baidu
BIDU
19.53 -1.5 BancFirst
BANF
34.70 -1.8 BankMutual
BKMU
26.45
29.10
72.37
89.87
195.60
43.00
12.36
14.66
55.09
65.83
8.06
119.97
33.75
31.15
273.07
58.88
10.50
0.2
0.2
3.5
0.9
0.3
0.7
0.7
8.4
2.0
...
9.0
-0.4
-0.1
...
3.9
1.0
1.0
-0.08
-0.19
-0.62
...
-0.02
1.58
0.13
-0.69
0.29
0.68
0.05
0.45
-0.15
0.21
-0.36
-1.02
0.05
-0.66
-0.17
0.13
0.77
-0.28
-0.22
0.23
-0.01
1.53
-0.96
-0.15
1.05
0.47
-0.07
-0.02
0.40
-0.88
0.02
-0.33
-1.15
-0.10
-1.69
-0.72
0.11
-0.13
0.50
0.07
-0.47
-0.38
-0.03
-0.18
0.08
0.27
0.12
-0.32
-2.01
0.07
-0.02
-0.09
0.04
-0.35
-0.46
-0.12
0.08
1.25
-0.04
0.01
-0.28
-0.34
-0.29
-0.19
0.27
NASDAQ
AGNC Invt AGNC 21.76
...
Ansys
ANSS 131.31 1.37
ASML
ASML 176.59 0.29
Abiomed
ABMD 170.55 -3.30
ActivisionBliz ATVI 61.48 0.40
AdobeSystems ADBE 150.46 -3.47
AkamaiTech AKAM 50.73 -0.03
AlexionPharm ALXN 140.84 0.23
s AlignTech ALGN 193.37 0.56
Alkermes ALKS 50.75 0.46
AlnylamPharm ALNY 121.89 -1.11
Alphabet A GOOGL 1009.35 1.48
Alphabet C GOOG 992.00 2.32
Altaba
AABA 68.04 0.52
Amazon.com AMZN 1006.34 3.40
Amdocs
DOX 65.61 -0.03
Amerco
UHAL 367.76 -0.80
AmericanAirlines AAL 52.27 -0.43
Amgen
AMGN 181.90 -1.11
AnalogDevices ADI 88.83 -0.23
Apple
AAPL 159.88 2.89
s AppliedMaterials AMAT 55.04 1.10
ArchCapital ACGL 98.92 0.58
Atlassian
TEAM 39.55 -0.09
s Autodesk ADSK 119.20 -0.43
ADP
ADP 114.58 0.72
BOK Fin
BOKF 90.05 1.50
s Baidu
BIDU 272.82 10.14
BankofOzarks OZRK 45.40 0.21
s Biogen
BIIB 335.68 -1.96
BioMarinPharm BMRN 94.66 -0.46
Bioverativ BIVV 59.16 0.50
BlueBuffaloPet BUFF 29.12 0.10
bluebirdbio BLUE 143.30 11.60
BrighthouseFin BHF 60.24 -0.16
Broadcom AVGO 246.67 -1.29
52-Wk %
Sym Hi/Lo Chg Stock
NYSE Arca lows - 40
Stock
CA
CA 33.71
CBOE Holdings CBOE 109.70
CDK Global CDK 64.76
CDW
CDW 68.29
CH Robinson CHRW 77.33
CME Group CME 137.52
CSX
CSX 52.84
s CadenceDesign CDNS 41.97
Carlyle
CG 24.10
Celgene
CELG 136.71
Cerner
CERN 72.08
CharterComms CHTR 362.60
CheckPointSftw CHKP 118.07
ChinaLodging HTHT 134.91
CincinnatiFin CINF 76.42
s Cintas
CTAS 151.22
CiscoSystems CSCO 33.54
CitrixSystems CTXS 81.61
s Cognex
CGNX 120.19
CognizantTech CTSH 74.17
Coherent
COHR 253.88
Comcast A CMCSA 36.61
CommerceBcshrs CBSH 57.00
CommScope COMM 31.88
s Copart
CPRT 36.27
CoStarGroup CSGP 286.22
Costco
COST 158.81
Ctrip.com CTRP 55.47
DISH Network DISH 49.03
DentsplySirona XRAY 59.19
DiamondbackEner FANG 102.60
t DiscoveryComm A DISCA 19.06
DiscoveryComm C DISCK 18.05
DollarTree DLTR 91.95
E*TRADE ETFC 44.49
EastWestBancorp EWBC 58.63
eBay
EBAY 37.77
s ElbitSystems ESLT 152.81
ElectronicArts EA 117.48
Equinix
EQIX 461.35
Ericsson
ERIC 5.91
s Exelixis
EXEL 29.02
Expedia
EXPE 148.49
ExpeditorsIntl EXPD 58.87
t ExpressScripts ESRX 56.81
F5Networks FFIV 115.79
Facebook
FB 174.52
Fastenal
FAST 47.26
FifthThirdBncp FITB 28.37
Fiserv
FISV 127.20
Flex
FLEX 17.61
FlirSystems FLIR 42.60
Fortinet
FTNT 38.94
Gaming&Leisure GLPI 37.04
Garmin
GRMN 55.15
Gentex
GNTX 20.21
GileadSciences GILD 79.95
Goodyear GT 33.04
Grifols
GRFS 21.50
HD Supply HDS 35.48
Hasbro
HAS 97.13
HenrySchein HSIC 81.91
Hologic
HOLX 35.90
JBHunt
JBHT 101.64
HuntingtonBcshs HBAN 13.92
IAC/InterActive IAC 124.82
IdexxLab
IDXX 158.55
IHSMarkit INFO 43.81
s IPG Photonics IPGP 198.69
IRSA Prop IRCP 61.20
IcahnEnterprises IEP 55.90
Icon
ICLR 115.68
Illumina
ILMN 206.23
Incyte
INCY 116.60
Intel
INTC 39.76
InteractiveBrkrs IBKR 47.72
Intuit
INTU 144.74
IntuitiveSurgical ISRG 353.55
s IonisPharma IONS 61.15
JD.com
JD 39.67
JackHenry JKHY 104.97
JazzPharma JAZZ 140.50
JetBlue
JBLU 20.24
KLA Tencor KLAC 107.33
KraftHeinz KHC 77.65
LKQ
LKQ 37.46
s LamResearch LRCX 192.36
LamarAdvertising LAMR 68.76
LibertyBroadbandA LBRDA 93.65
LibertyBroadbandC LBRDK 94.61
LibertyGlobal A LBTYA 32.59
LibertyGlobal B LBTYB 32.55
LibertyGlobal C LBTYK 31.56
LibertyLiLAC A LILA 22.77
LibertyLiLAC C LILAK 22.88
LibertyQVC A QVCA 22.52
LibertyVenturesA LVNTA 58.35
LibertyFormOne A FWONA 38.29
LibertyFormOne C FWONK 40.04
LibertyBraves A BATRA 24.83
LibertyBraves C BATRK 24.74
LibertySirius A LSXMA 43.25
s LibertySirius B LSXMB 43.13
LibertySirius C LSXMK 43.19
LincolnElectric LECO 94.87
LogitechIntl LOGI 36.47
LogMeIn
LOGM 116.50
52-Wk %
Sym Hi/Lo Chg Stock
Bio-Techne
TECH
Biogen
BIIB
BldrsDev100
ADRD
BlueHillsBncp BHBK
Brooks Auto
BRKS
Bruker
BRKR
CabotMicro
CCMP
CadenceDesign CDNS
CalamosConvOp CHI
CalamsGlblDynInc CHW
CarGurus
CARG
Celcuity
CELC
ChartIndustries GTLS
Cintas
CTAS
ClearBr AC Grw CACG
CodorusValleyBncp CVLY
Cognex
CGNX
Cohu
COHU
ConstellationAlphaCap CNAC
Copart
CPRT
DavisWorldwide DWLD
DecipheraPharm DCPH
Diodes
DIOD
ElbitSystems ESLT
EnstarGroup
ESGR
EntegraFin
ENFC
Entegris
ENTG
ePlus
PLUS
Exelixis
EXEL
FARO Tech
FARO
FNBBancorp
FNBG
Fanhua
FANH
FarmersNatlBanc FMNB
FidelityNasdComp ONEQ
FirstBancorpNC FBNC
FT BICK
BICK
FT CanadaAlpha FCAN
FT CapStrength FTCS
FT CloudComp SKYY
FT DevMkts
FDT
FT NasdTechDiv TDIV
FT GlblAgri
FTAG
FT GlbNatRscs FTRI
FT JapanAlpha FJP
FT LC CoreAlpha FEX
FT LC GrwthAlpha FTC
FT LowBetaIincm FTLB
FT MC CoreAlpha FNX
FT MC GrwthAlpha FNY
FT NasdCleanEdge QCLN
FT NasdClEdSmGr GRID
FT Nasd100Tech QTEC
FT NasdSmartphone FONE
FT RiverFrDynAP RFAP
FirstService
FSV
FlexSTOXXGlbESGImp ESGG
Fonar
FONR
FormFactor
FORM
ForwardAir
FWRD
GRAVITY
GRVY
GigaMedia
GIGM
GilatSatellite
GILT
GladstoneInvt GAIN
GlbXConsciousCos KRMA
GlbX Robotics&AI BOTZ
GlbXSocialMedia SOCL
GlbXSuperDivdREIT SRET
GluMobile
GLUU
GpoFinGalicia GGAL
HalozymeTherap HALO
HeritageFin
HFWA
HorizDAXGermany DAX
HorizNasd100 QYLD
Hurco
HURC
IPG Photonics IPGP
IQ Chaikin US SC CSML
Ichor
ICHR
125.41
344.37
23.12
21.90
31.94
31.12
83.51
42.57
11.73
9.22
35.00
16.96
43.92
152.50
26.69
33.97
120.44
24.99
9.90
36.52
24.98
24.50
33.30
153.13
231.95
26.60
30.10
97.75
32.50
40.95
36.85
15.97
15.95
260.45
35.95
30.16
25.85
48.50
42.98
60.65
33.22
27.47
12.16
56.74
55.83
59.07
22.67
62.91
37.55
19.98
50.73
70.61
52.30
60.14
72.37
91.54
32.50
17.60
59.98
43.00
3.70
6.65
9.98
18.54
22.90
32.84
15.72
4.57
54.92
18.43
30.35
31.47
24.32
45.35
199.73
27.73
33.94
0.7
-0.6
0.3
1.0
0.7
0.2
0.3
-0.1
0.7
-0.3
11.6
1.2
0.3
-0.5
-0.1
0.2
1.6
0.8
0.9
-0.1
0.8
-0.8
...
1.4
-0.1
1.0
1.0
0.8
17.2
0.7
3.2
1.7
2.3
0.2
1.1
-0.7
0.3
-0.2
0.1
...
0.2
...
0.5
...
...
0.2
0.3
0.1
0.1
0.1
-0.1
0.3
...
0.2
0.4
0.4
2.4
2.6
-0.9
15.5
2.3
4.3
1.1
-0.1
0.4
-0.1
0.1
2.1
-0.5
2.2
1.7
-0.3
0.1
1.5
0.3
0.1
0.7
Net
Sym Close Chg
Stock
lululemon LULU 58.20 -0.97
MarketAxess MKTX 192.39 1.11
s Marriott
MAR 114.75 -0.36
MarvellTech MRVL 18.27 -0.01
MatchGroup MTCH 25.62 -0.17
MaximIntProducts MXIM 49.50 0.15
MelcoResorts MLCO 23.71 0.01
MercadoLibre MELI233.00-11.90
MicrochipTech MCHP 91.89 0.13
MicronTech MU 41.49 1.09
Microsemi MSCC 51.44 -0.51
Microsoft MSFT 77.65 0.16
Middleby
MIDD122.65 -2.52
Momo
MOMO 34.38 1.55
Mondelez MDLZ 41.55 -0.13
MonsterBeverage MNST 56.22 0.39
Mylan
MYL 38.18 0.23
NXP Semi NXPI 114.94 -0.23
Nasdaq
NDAQ 74.11 -0.23
NatlInstruments NATI 44.44 -0.21
NetApp
NTAP 43.72 0.09
Netease
NTES 282.58 2.93
s Netflix
NFLX202.68 3.19
NewsCorp A NWSA 13.68
...
NewsCorp B NWS 14.05
...
Nordson
NDSN 123.22 1.08
NorthernTrust NTRS 91.92 -1.07
NorwegianCruise NCLH 58.92 0.18
s NVIDIA
NVDA 197.93 3.34
OReillyAuto ORLY 209.02 -0.70
OldDomFreight ODFL 108.25 0.77
ON Semi
ON 19.59 0.02
OpenText OTEX 33.67 -0.01
s PTC
PTC 60.02 -0.02
Paccar
PCAR 72.71 0.02
PacWestBancorp PACW 48.09 0.13
Paychex
PAYX 63.45 -0.30
PayPal
PYPL 67.31 -1.35
People'sUtdFin PBCT 18.28 0.07
PilgrimPride PPC 29.33 0.21
Priceline
PCLN 1935.55 6.49
Qiagen
QGEN 34.52 -0.13
Qorvo
QRVO 72.53 0.14
Qualcomm QCOM 52.38 -0.44
RandgoldRscs GOLD 98.40 -2.04
RegenPharm REGN 445.68 2.72
RossStores ROST 62.91 -0.21
RoyalGold RGLD 87.60 -0.62
Ryanair
RYAAY 106.64 -1.02
SBA Comm SBAC 149.11 -1.83
SEI Investments SEIC 63.72 0.31
Sina
SINA 114.99 -1.60
s SS&C Tech SSNC 41.58 0.61
SVB Fin
SIVB 185.20 1.04
ScrippsNetworks SNI 83.37 -0.45
Seagate
STX 34.49 0.09
SeattleGenetics SGEN 62.89 -0.11
Shire
SHPG 155.28 1.21
SignatureBank SBNY 124.74 1.23
SiriusXM
SIRI 5.70 -0.01
Skyworks SWKS 106.98 0.32
Splunk
SPLK 64.27 0.72
Starbucks SBUX 54.91 -0.81
SteelDynamics STLD 36.17 -0.75
Stericycle SRCL 70.07 -0.53
Symantec SYMC 32.06 -0.30
Synopsys SNPS 84.07 -0.54
TD Ameritrade AMTD 47.77 0.46
TESARO
TSRO 120.31 -2.69
T-MobileUS TMUS 60.97 -0.42
TRowePrice TROW 94.82 -0.12
TakeTwoSoftware TTWO 104.78 0.20
Tesla
TSLA 350.60 -4.97
s TexasInstruments TXN 94.23 0.64
TractorSupply TSCO 58.64 -0.18
s Trimble
TRMB 40.98 0.35
21stCenturyFoxA FOXA 26.69 0.17
21stCenturyFoxB FOX 26.10 0.27
UltaBeauty ULTA 193.70 -4.88
UltimateSoftware ULTI 194.45 -3.47
UniversalDisplay OLED 135.50 1.30
VEON
VEON 4.03 0.02
VeriSign
VRSN 108.46 0.24
VeriskAnalytics VRSK 84.07 0.07
VertxPharm VRTX 154.70 1.79
Viacom A VIA 33.75 -0.10
Viacom B VIAB 26.26 0.26
Vodafone VOD 29.00 -0.12
WPP
WPPGY 91.36 -0.40
t WalgreensBoots WBA 67.31 -0.25
Weibo
WB 99.07 -0.67
WesternDigital WDC 86.83 -0.97
s WillisTwrsWatson WLTW 158.95 1.36
Workday
WDAY 107.23 -2.13
WynnResorts WYNN 146.81 4.48
Xilinx
XLNX 72.66 -0.15
Yandex
YNDX 31.89 -0.55
ZebraTech ZBRA 110.16 0.37
Zillow A
ZG 41.10 -0.34
Zillow C
Z
41.14 -0.41
ZionsBancorp ZION 46.79 0.19
-0.17
-0.80
-0.15
0.21
0.07
0.21
0.01
-0.03
0.05
0.25
-1.49
5.20
-1.06
7.53
-0.05
-0.72
0.07
0.14
1.90
-0.21
0.15
0.60
0.57
-0.31
-0.05
-0.80
-1.04
0.28
0.65
0.97
1.23
-0.18
-0.20
0.45
0.63
...
-0.58
2.06
-1.14
-1.47
-0.04
4.26
-1.62
-1.30
-0.33
-0.91
0.78
0.68
0.31
0.12
0.09
-0.18
-0.14
0.28
-0.02
0.17
-1.22
0.03
0.30
-0.26
0.51
0.98
-0.38
-2.37
0.22
-0.71
-1.05
-0.09
0.59
0.20
0.45
2.05
-0.69
2.29
0.09
0.08
-0.91
-8.74
2.05
0.95
-0.13
-0.88
-0.13
2.03
-0.09
0.18
2.46
-0.75
0.20
0.11
0.55
-0.30
0.58
-0.56
-0.35
0.21
0.37
0.43
0.54
-0.30
-0.27
-0.20
-2.38
-0.13
0.44
-0.04
0.45
NYSE AMER
61.25 -0.7
200.18 -0.4
63.20 3.5
64.30 0.2
35.63 0.4
62.36 ...
51.59 0.1
35.10 ...
69.37 0.3
70.12 0.1
49.42 ...
75.44 0.2
66.23 0.5
72.39 -0.1
53.24 0.1
59.37 -0.2
18.01 0.2
165.81 0.5
79.55 0.6
14.50 -0.1
22.45 -1.4
20.97 -0.2
60.47 1.9
53.63 ...
20.94 1.0
193.85 1.3
102.55 0.6
13.27 -0.1
29.52 0.4
46.51 -5.2
4.42 -0.7
65.07 4.6
99.30 0.4
46.79 -0.9
115.40 -0.3
13.70 1.9
44.86 2.5
31.19 2.6
114.63 -0.2
40.45 1.3
368.00 1.2
202.83 1.6
25.27 -0.1
21.10 5.1
23.06 0.2
198.05 1.7
20.97 3.2
44.11 0.1
10.36 2.0
83.73 1.5
60.35 ...
35.49 0.3
52.60 0.3
19.96 -0.1
50.23 0.6
100.75 0.4
27.90 0.1
52.97 0.1
27.19 0.5
45.92 1.7
35.56 0.1
115.11 0.3
148.89 0.3
81.45 -0.2
73.95 0.6
25.43 -0.1
122.34 1.0
28.00 -0.7
2.70 2.1
39.86 ...
2.59 108.4
41.82 0.8
9.05 2.4
41.63 1.5
45.35 0.1
55.40 -0.3
13.06 -0.2
47.72
29.19
25.83
31.53
CheniereEnergy LNG
CheniereEnerPtrs CQP
CheniereEnHldgs CQH
ImperialOil IMO
52-Wk %
Sym Hi/Lo Chg Stock
Insulet
PODD
InvestorsTitle ITIC
IonisPharma
IONS
iShAsia50ETF AIA
iShCommodSelStrat COMT
iShCoreMSCITotInt IXUS
iShCoreS&PUSGrowth IUSG
iShExponentialTech XT
iShGlbTimber WOOD
iShMSCIACWIETF ACWI
iShMSCIACWIexUSETF ACWX
iShMSCIACxJpn AAXJ
iShMSCIChinaETF MCHI
iShMSCIEMESGOpt ESGE
iShMSCIEMxChina EMXC
iShMSCIGlbImpact MPCT
iShMSCIUAECapped UAE
iShPHLXSemicond SOXX
Itron
ITRI
Jewett-Cameron JCTCF
KimballElec
KE
KimballIntl B
KBAL
KraneCSIChInt KWEB
LPL Financial LPLA
LakelandBcp
LBAI
LamResearch LRCX
LandstarSystem LSTR
LayneChristensen LAYN
LeggMasonDev DDBI
LibertySirius B LSXMB
LimelightNetworks LLNW
MGPIngredients MGPI
MKS Instrum MKSI
ManTechIntl
MANT
Marriott
MAR
MercerIntl
MERC
MiddlesexWater MSEX
Mimecast
MIME
MonolithicPower MPWR
MutualFirstFin MFSF
NatlWesternLife NWLI
Netflix
NFLX
NewYorkMtgPfdD NYMTN
NorthwestPipe NWPX
NuvNasd100Dyn QQQX
NVIDIA
NVDA
OptiNose
OPTN
Orbotech
ORBK
Otelco
OTEL
PRA HealthSci PRAH
PTC
PTC
PeapackGladFinl PGC
Potlatch
PCH
PwrShDWA EM PIE
PwrShDWA Mom PDP
PwrShDWANasdMom DWAQ
PwrShDWATactical DWTR
PwrShDynTech PTF
PwrShGlblAgricult PAGG
PwrShGoldDragon PGJ
PwrShIntlBuyBack IPKW
PwrShNasdInternet PNQI
PwrShQQQ 1 QQQ
PwrShS&P InfTech PSCT
PreformedLine PLPC
PrincipalUSMega USMC
ProShUltPrQQQ TQQQ
RCI Hospitality RICK
RF Industries RFIL
ROBOGlblRobotics ROBO
ReconTech
RCON
RepublicBcpKYA RBCAA
RiverviewBncp RVSB
SS&C Tech
SSNC
ScanSource
SCSC
SelectiveIns
SIGI
SimplyGoodFoods SMPL
Net
Sym Close Chg
0.85
0.52
0.42
0.08
52-Wk %
Sym Hi/Lo Chg
Sohu.com
SOHU
SolarEdgeTech SEDG
StateBankFin STBZ
Synalloy
SYNL
TICCCapNts24 TICCL
Teletech
TTEC
TexasInstruments TXN
TriCoBancshares TCBK
Trimble
TRMB
TwinDisc
TWIN
UFP Tech
UFPT
UltraClean
UCTT
uniQure
QURE
UnitedFinBncp UBNK
US GlobalInv GROW
UnivStainless USAP
UTStarcom
UTSI
VangdIntlDivApp VIGI
VangdRuss1000 VONE
VangdRuss1000Grw VONG
VangdRuss3000 VTHR
VSInverseVIXSTerm XIV
VicShUS500Vol CFA
VicShUSMultMin VSMV
WSFS Financial WSFS
WshgtnFirstBksh WFBI
WillisTwrsWatson WLTW
WisdTrChinaxSOE CXSE
WisdTrJapanHdgSC DXJS
WisdTrUSQltyDiv DGRW
Woodward
WWD
YY
YY
70.65
30.75
29.70
14.85
26.65
43.75
94.41
42.78
41.03
22.00
30.45
33.96
12.25
18.98
2.75
23.04
3.03
65.50
117.44
131.21
117.55
109.81
46.41
25.97
51.00
37.19
159.16
82.86
43.60
38.85
80.94
97.59
8.6
3.0
0.9
-1.7
-0.9
-0.3
0.7
0.8
0.9
6.9
-0.5
0.3
11.9
0.8
-5.3
-1.4
5.2
-0.2
0.2
0.2
0.1
1.7
0.1
1.1
0.7
0.4
0.9
0.4
0.3
...
-0.3
4.4
Nasdaq lows - 42
AcelRxPharm ACRX
Advaxis
ADXS
Aemetis
AMTX
AquaMetals
AQMS
AzurRxBioPharma AZRX
Big5SportingGoods BGFV
BravoBrioRestr BBRG
CardiomePharma CRME
Cenveo
CVO
ChinaBiologic CBPO
ConcordiaIntl CXRX
ConstellAlphaWt CNACW
DelFrisco's
DFRG
DiscoveryComm A DISCA
ElbitImaging
EMITF
EnergyXXIGulfCoast EXXI
ExpressScripts ESRX
FTD
FTD
GenMarkDiagn GNMK
I-AM Capital Wt IAMXW
ImprimisPharm IMMY
InsysTherap
INSY
JMU
JMU
OspreyEnergy OSPR
ProfDiversity IPDN
ProShUltraProShQQQ SQQQ
Radisys
RSYS
RennovaHealth RNVA
SearsHoldingsWt SHLDW
ShiftPixy
PIXY
TandemDiabetes TNDM
Tintri
TNTR
Tocagen
TOCA
US Gold
USAU
Valeritas
VLRX
VS2xVIXMedTerm TVIZ
VS2xVIXShortTerm TVIX
VSVIXShortTerm VIIX
VeraBradley
VRA
Vivus
VVUS
WMIH
WMIH
WalgreensBoots WBA
1.90 -8.2
3.86 -0.5
0.71 -8.6
5.11 -8.1
3.04 -5.9
6.80 -2.8
2.00 -8.9
1.94 -1.0
1.60 -13.6
79.04 1.1
1.06 -6.6
0.20 -13.0
11.70 -2.7
18.98 -0.9
2.62 -4.4
8.94 -3.2
56.65 -0.6
12.34 0.4
8.49 -4.4
0.28 -6.7
1.42 -5.8
7.33 -1.7
1.16 -3.3
9.55 ...
3.41 -6.7
25.00 -1.0
1.28 -5.1
1.38 -7.7
1.03 -40.7
2.22 -7.9
2.50 -14.4
2.78 1.7
9.65 -3.1
1.61 -0.7
2.10 0.6
11.28 -2.5
8.81 -3.5
14.66 -1.9
7.63 -2.2
0.82 -3.4
0.86 2.9
67.21 -0.4
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Largest 100 exchange-traded funds, latest session
ETF
Dividend Changes
Net
Sym Close Chg
NTTDoCoMo DCM 23.42
NVR
NVR 2945.56
NationalGrid NGG 61.64
NatlOilwell NOV 34.99
NatlRetailProp NNN 42.48
NewOrientalEduc EDU 93.63
NY CmntyBcp NYCB 12.80
NewellBrands NWL 42.75
NewfieldExpln NFX 30.02
NewmontMining NEM 37.99
NextEraEnergy NEE 151.52
NielsenHoldings NLSN 39.62
Nike
NKE 51.37
NiSource
NI
26.37
NobleEnergy NBL 27.90
Nokia
NOK 5.87
NomuraHoldings NMR 5.91
Nordstrom JWN 40.40
NorfolkSouthern NSC 129.80
NorthropGrumman NOC 295.78
Novartis
NVS 86.37
s NovoNordisk NVO 49.32
Nucor
NUE 57.21
t NuSTAREnergy NS 37.34
OGE Energy OGE 36.72
ONEOK
OKE 56.25
OccidentalPetrol OXY 64.77
Och-Ziff
OZM 3.30
Olin
OLN 35.46
OmegaHealthcare OHI 31.66
Omnicom OMC 73.93
Oracle
ORCL 48.86
Orange
ORAN 16.37
OrbitalATK OA 133.44
s Orix
IX 85.84
Oshkosh
OSK 87.83
OwensCorning OC 79.54
t PG&E
PCG 53.43
PLDT
PHI 32.04
PNC Fin
PNC 135.03
POSCO
PKX 74.61
PPG Ind
PPG 113.17
PPL
PPL 37.40
PVH
PVH 124.67
PackagingCpAm PKG 117.00
PaloAltoNtwks PANW 149.01
ParkHotels PK 28.71
ParkerHannifin PH 181.41
ParsleyEnergy PE 26.79
Pearson
PSO 8.20
PembinaPipeline PBA 34.24
s Pentair
PNR 71.10
PepsiCo
PEP 113.57
PerkinElmer PKI 71.25
Perrigo
PRGO 87.04
PetroChina PTR 65.13
PetroleoBrasil PBR 10.48
PetroleoBrasilA PBR.A 10.16
Pfizer
PFE 35.98
PhilipMorris PM 113.52
Phillips66 PSX 90.87
PinnacleFoods PF 57.26
PinnacleWest PNW 87.27
PioneerNatRscs PXD 143.69
PlainsAllAmPipe PAA 20.72
PlainsGP
PAGP 21.27
PolarisIndustries PII 103.45
PostHoldings POST 87.03
Potash
POT 19.41
Praxair
PX 141.29
PrincipalFin PFG 67.32
Procter&Gamble PG 93.14
Progressive PGR 48.98
Prologis
PLD 65.00
PrudentialFin PRU 109.37
Prudential PUK 48.24
PublicServiceEnt PEG 48.60
PublicStorage PSA 217.56
PulteGroup PHM 27.11
QuestDiag DGX 91.53
s QuintilesIMS Q
99.33
RELX
RENX 21.76
RELX
RELX 22.66
RPM
RPM 51.73
RalphLauren RL 86.05
RaymondJames RJF 85.64
Raytheon RTN 188.71
RealtyIncome O
56.90
RedHat
RHT 120.89
RegencyCtrs REG 64.23
RegionsFin RF 14.96
s ReinsuranceGrp RGA 143.15
RepublicServices RSG 62.76
ResMed
RMD 77.73
s RestaurantBrands QSR 66.91
RiceEnergy RICE 27.32
s RioTinto
RIO 50.02
RobertHalf RHI 49.05
s Rockwell
ROK 186.41
RockwellCollins COL 134.68
s RogersComm B RCI 53.70
s Rollins
ROL 47.67
RoperTech ROP 251.77
RoyalBkCanada RY 79.30
RoyalBkScotland RBS 7.35
RoyalCaribbean RCL 127.39
RoyalDutchA RDS.A 60.87
RoyalDutchB RDS.B 62.59
52-Wk %
Sym Hi/Lo Chg Stock
IPAC
NYSE Arca highs - 242 iShCoreMSCIPacific
iShModAllocation AOM
ALPS EqSecWgh EQL
ALPSMedBreak SBIO
ARKWebx.0ETF ARKW
AdvShCornerSC SCAP
AdvShDorseyADR AADR
AdvShNewTech FNG
BluStrTABIGIIsrael ITEQ
BuzzUSSentLdrs BUZ
ClaymoreIdxLnk GCE
ClearSharesOCIO OCIO
ColumbiaDivFixed DIAL
ColumbiaEMCoreXCh XCEM
ColumbiaEMConsumer ECON
ColumbiaIndiaInfr INXX
ColumbiaSustIntl ESGN
CS FI LC Grwth FLGE
DBAgricLongETN AGF
DBBaseMtlsDoubleLg BDD
DeltaShS&P500Mgd DMRL
DeltaShS&PIntMgd DMRI
DiamondHillVal DHVW
DirexCSIChinaInt CWEB
DirexEM Bull3 EDC
DirexJapanBl3 JPNL
DirexS&P500Bl3 SPXL
DirexS&P500Bull2X SPUU
DirexS&P500Bl1.25 LLSP
DirexSemiBl3 SOXL
DirexTechBull3 TECL
Direx iBillionaire IBLN
DirexNasd100EW QQQE
ETFS PlldmShr PALL
EthoClimateLeader ETHO
FidelityDivRising FDRR
FidelityLowVol FDLO
FidelityMSCIIT FTEC
FidelityMSCIMatls FMAT
FidelityMomFactor FDMO
FidelityValFactor FVAL
FT Dow30EW EDOW
FT GlbEngg
FLM
FT Chindia
FNI
FT Long/Short FTLS
FT MatAlpDX FXZ
FT NYSE ArcaBiotch FBT
FT TechAlphaDEX FXL
FT USEquityOpp FPX
FlexGlbUpstmNatRsc GUNR
FlexShIntQuDivDyn IQDY
FlexShIntlQualDiv IQDF
FlexShMDevMktxUS TLTD
FlexShEM FactTilt TLTE
GlbX ChinaFinls CHIX
GlbXCopperMiners COPX
GlbX FTSE SE Asia ASEA
GlbXSciBetaAsiaXJ SCIX
GlbXSciBetaUS SCIU
GlblXSuperDividend SDIV
GSActiveBetaJapan GSJY
GuggBRIC
EEB
GuggChinaAllCap YAO
GuggChinaSC HAO
GuggChinaTech CQQQ
GuggS&P500EWMat RTM
GuggS&P500PureGr RPG
GuggInsider
NFO
GuggGlbTimber CUT
GuggMC Core CZA
GuggS&P500Top50 XLG
HartfordMultiDvxUS RODM
IQ AustraliaSC KROO
IQ50%HdgFTSEIntl HFXI
IQ50%HdgFTSEJapan HFXJ
IQGlbAgribusSC CROP
IQGlobalResources GRES
IQ HedMacrTrac MCRO
IQ HedMultStra QAI
InnovatorIBD50Fd FFTY
iPathBloomCopperTR JJC
iPathBlmIndMetalTR JJM
iPathCBOE S&P500BW BWV
iPath MSCI India INP
iShConsAllocat AOK
iShGrwthAllocation AOR
0.59
-0.09
-0.02
0.04
-0.99
-0.34
-0.27
1.60
0.27
-0.15
0.01
-0.05
0.03
-0.14
1.98
0.45
0.02
-0.08
-0.31
0.06
-0.22
0.22
0.45
-0.75
0.29
0.26
-2.27
-0.05
0.24
-0.22
0.08
-0.34
-0.20
0.05
-0.57
0.72
-0.38
0.17
-0.86
0.01
0.02
-0.56
0.19
-0.05
-1.21
0.07
0.69
0.79
0.54
0.71
0.12
-0.68
-0.16
-0.32
-0.12
0.42
-0.68
-0.10
-0.60
0.58
0.02
0.05
-0.19
-0.02
-0.45
0.21
-1.13
0.02
1.01
-0.05
0.19
1.39
-0.59
-0.06
-0.31
-0.58
-1.69
0.48
0.05
0.10
-0.65
2.27
0.01
0.97
0.04
-1.12
0.62
0.53
-0.36
-0.56
-0.34
-0.05
0.15
8.33
0.85
0.50
-1.23
0.10
0.06
-0.07
2.19
-0.84
0.12
0.51
0.64
0.12
-0.57
0.56
Stock
Monday, October 16, 2017
Closing Chg YTD
Symbol Price (%) (%)
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
DBGoldDoubleLgETN
DBGoldDoubleShrt
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFEETF
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500ETF
iShCoreS&PMdCp
iShCoreS&PSmCpETF
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCIACWIETF
iShMSCIBrazilCap
AMLP
XLY
XLP
DGP
DZZ
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
IAU
LQD
HYG
EMB
MBB
ACWI
EWZ
11.11
91.34
54.59
25.82
5.44
68.29
26.30
96.57
82.06
72.14
110.10
105.18
123.40
65.19
56.12
62.28
257.05
181.39
74.47
58.55
109.75
95.01
72.13
50.98
12.45
121.41
88.38
116.21
107.17
70.07
42.94
–0.63 –11.8
0.13 12.2
5.6
0.04
0.39 28.3
1.83 –20.7
0.22 –9.3
0.65 13.1
0.03 11.5
–0.44 19.0
0.11 15.9
1.8
–0.08
0.2
–0.09
0.7
–0.16
–0.07 21.5
–0.09 32.2
–0.05 23.4
0.16 14.2
9.7
0.01
8.3
–0.16
0.21 14.2
1.6
–0.10
7.3
–0.01
–0.36 17.8
–0.10 12.7
–0.72 12.4
3.6
–0.14
2.1
0.06
5.4
–0.18
0.8
–0.07
0.10 18.4
–0.92 28.8
ETF
ETF
Closing Chg YTD
Symbol Price (%) (%)
iShMSCI EAFE
iShMSCIEAFESC
iShMSCIEmgMarkets
iShMSCIEurozoneETF
iShMSCIJapanETF
iShNasdaqBiotech
iShNatlMuniBdETF
iShRussell1000Gwth
iShRussell1000ETF
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000ETF
iShRussell2000Val
iShRussell3000ETF
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500ValueETF
iShUSPfdStk
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDRBloomBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
EFA
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
TIP
SHY
IEF
TLT
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
69.52
62.90
46.63
43.52
57.64
336.84
111.14
127.88
142.18
119.69
180.24
149.24
124.98
151.53
199.99
85.81
206.06
146.42
109.00
38.49
113.87
84.31
106.68
125.76
115.48
101.79
148.85
46.56
23.21
37.19
122.97
34.02
61.84
–0.07
–0.10
–0.06
–0.18
0.45
0.14
0.09
0.13
0.13
0.08
–0.12
–0.09
–0.07
0.11
0.05
–0.01
0.09
0.14
0.14
–0.16
–0.23
–0.09
–0.17
–0.07
0.10
0.02
0.34
–0.02
0.04
0.03
–0.69
–0.03
0.16
20.4
26.2
33.2
25.8
18.0
26.9
2.7
21.9
14.2
6.8
17.1
10.7
5.1
13.9
11.8
6.7
13.1
20.2
7.5
3.4
0.6
–0.2
1.8
5.6
18.6
0.5
25.6
12.0
–0.6
2.0
12.2
22.9
14.1
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
Closing Chg YTD
Symbol Price (%) (%)
SCHX
DIA
MDY
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VIG
VEA
VWO
VGK
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
HEDJ
DXJ
61.02
229.45
330.68
255.29
92.81
60.72
54.03
23.46
156.95
128.90
96.00
44.11
45.14
58.69
53.81
135.29
152.87
82.40
84.77
88.10
117.27
148.95
106.91
84.37
234.51
79.74
80.05
142.74
81.97
54.78
55.93
131.45
72.02
101.12
65.17
56.18
0.15
0.31
–0.02
0.13
0.02
0.36
–0.22
–1.59
0.27
0.01
–0.03
–0.09
–0.09
–0.27
–0.06
0.09
–0.33
0.05
–0.08
–0.15
0.14
0.05
0.11
–0.50
0.16
–0.05
–0.07
–0.02
–0.10
0.16
–0.11
0.07
0.04
0.17
–0.05
0.74
14.6
16.2
9.6
14.2
8.5
25.6
11.2
12.1
29.2
6.5
12.7
20.7
26.2
22.4
21.8
21.4
20.6
8.8
2.0
2.8
14.6
13.2
10.0
2.2
14.2
0.4
0.9
10.7
1.5
0.9
21.9
14.0
18.1
8.7
13.5
13.4
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
B10 | Tuesday, October 17, 2017
THE WALL STREET JOURNAL.
* *
BANKING & FINANCE
Edward Jones Joins the Club Wells Fargo to Pay
BY LISA BEILFUSS
Client assets at Edward
Jones have surpassed $1 trillion, the regional brokerage
said, as it competes in recruiting against Wall Street titans
such as Merrill Lynch and
Morgan Stanley.
The St. Louis-based brokerage, known for its thousands of
storefronts across the U.S., is
pursuing clients in urban centers that have traditionally been
the domain of the biggest brokerages. And the closely held
firm is pushing to beef up its
broker ranks by recruiting experienced advisers from rivals, as
larger competitors pull back on
some costly recruiting practices.
Market gains in recent
years have helped account balances grow at Wall Street
firms, asset managers and regional brokers, but this year
net new assets account for
about half of overall client-asset growth at Edward Jones,
said Jim Weddle, head and
managing partner.
Assets under management
now stand at $1.06 trillion, up
9.9% from the start of the
year. Net new assets rose by
$30.9 billion through August, he
said, on track to hit the firm’s
$47.1 billion target for net new
assets in 2017. “We are not confusing [asset growth] with a
bull market,” Mr. Weddle said.
For nearly a century, Edward Jones relied on career
changers and new college
graduates to expand its broker
ranks. Now, with a plan to field
20,000 brokers and push
deeper into cities such as Chicago, Boston and Dallas, where
its rivals are entrenched, Edward Jones is looking to attract experienced brokers from
big-name shops.
Of the roughly 700 brokers
the firm has hired this year,
Mr. Weddle said about 130, or
almost 19%, are from other
firms. That compares with
roughly 40 experienced advisers Edward Jones brought in
last year. Mr. Weddle said he
expects to hire as many as 200
more advisers by the end of
2017, translating to 6% growth
in the overall adviser count for
the year to about 16,000.
Merrill Lynch’s adviser force
stood at about 15,000 at the
end of the most recent quarter.
Morgan Stanley has roughly
16,000 financial advisers.
Big U.S. brokerages Bank of
America Corp.’s Merrill Lynch,
Morgan Stanley and UBS Group
AG have in recent quarters
pulled back on paying big bonuses to lure brokers from rivals—a costly and long-criticized recruiting practice known
as “prisoner exchange”—in
part to comply with a new re-
$3.4 Million Over
Advisers’ Flub
BY GUNJAN BANERJI
JOSHUA ROBERTS/BLOOMBERG NEWS
Regional broker tops
$1 trillion in assets,
plans to push deeper
into some larger cities
Managing partner Jim Weddle is luring brokers from big-name shops.
tirement-savings rule that requires advisers to act in clients’
best interest. The poaching
could potentially lead to problems for firms under the rule,
because it in part mandates
“reasonable compensation.”
This pullback on poaching
has given Edward Jones an
opening to lure smaller-revenue producers from firms including Merrill Lynch. While
the bonuses pale in comparison with the multimillion-dollar checks often commanded
by veteran brokers who join
the biggest brokerages, they
come as rivals have scaled
back hefty recruitment deals
and redirected much of the
money to retention.
The recruiting retrenchment
at big firms “is an opportunity
for a firm like Edward Jones to
compete,” said Mindy Diamond, president and founder
of Diamond Consultants, a recruiting firm for financial advisers. “The playing field has
been leveled,” she said.
How far into big-city markets
Edward Jones can reach remains to be seen. “They have a
better shot now than they had a
year ago,” Ms. Diamond said.
“Edward Jones appeals to a very
niche kind of financial adviser,”
typically someone who isn’t in a
major city, she said, and so the
firm isn’t a “major player” when
it comes to recruiting.
Edward Jones said part of
its recruitment effort is centered on drawing women into
an industry that leans heavily
toward men.
Wells Fargo & Co. agreed
to compensate customers after recommending exchangetraded products linked to
stock-market volatility without fully understanding the
securities’ risks.
The Financial Industry
Regulatory Authority ordered
a brokerage division of Wells
Fargo that has financial advisers around the country to pay
$3.4 million for recommending the volatility ETPs between July 2010 and May
2012.
“Certain Wells Fargo representatives mistakenly believed that the products could
be used as a long-term hedge
on their customers’ equity positions in the event of a market downturn,” Finra said
Monday.
In fact, the volatility ETPs
are for short-term trades and
their value can erode significantly over time, said Finra.
The ETPs shouldn’t be used as
part of a long-term buy-andhold investment strategy, according to the regulator.
The Wells Fargo charge
marks the first time that
Finra has made a case related
to volatility ETPs, a spokeswoman for the regulator said.
The first volatility ETP
launched in 2009, and they
have surged in popularity
among both institutional and
individual investors.
The products are linked to
the widely watched measure
of volatility for stocks, the
CBOE Volatility Index, or VIX.
The iPath S&P 500 VIX
Short-Term
Futures
Exchange-Traded Note, or VXX,
was one of the first and is
among the most traded securities in the U.S. stock market,
according to The Wall Street
Journal’s Market Data Group.
Wells Fargo has settled the
claims with Finra and ceased
offering some volatility ETPs
in retail brokerage accounts, a
spokeswoman for the firm
said in an email.
“We are committed to
helping our clients achieve
their
investment
goals
through advice that is regularly reviewed and aligned to
their objectives and risk tolerances,” the spokeswoman
said.
Besides the iPath S&P 500
VIX ETN, other products that
Wells Fargo doesn’t offer include the iPath S&P 500 VIX
Mid-Term Futures ExchangeTraded Note, which has
plunged more than 40% this
year, and the ProShares VIX
The charge marks the
first time Finra has
made a case related
to volatility ETPs.
Short-Term
Futures
Exchange-Traded Fund, which is
down about 65% in 2017.
Wells Fargo didn’t give its
representatives the adequate
training regarding volatility
ETPs, violating Finra rules, according to the regulatory body.
This isn’t the first time
Wells Fargo has been ordered
to compensate customers regarding ETPs. In 2012, Finra
fined the firm more than $2
million for violations related
to leveraged, inverse and inverse leveraged products, and
ordered it to pay over
$600,000 in restitution to
customers.
Wells Fargo is also facing $1
billion in charges over a regulatory investigation into its
crisis-era mortgage practices.
DEMIANCHUK ALEXANDER/ZUMA PRESS
Top Court to Review
Challenge to AmEx
BY ANNAMARIA ANDRIOTIS
AND BRENT KENDALL
An exhibit at a conference on cryptocurrencies in St. Petersburg, Russia. J.P. Morgan is rolling out a pilot program on blockchain.
For Dimon, Love-Hate Relationship
BY EMILY GLAZER
J.P. Morgan Chase & Co.
Chief Executive James Dimon recently trashed the digital currency bitcoin as a fraud
that will blow up. But he is
still enamored with the technology that underpins it and
other virtual currencies.
The latest sign came Monday, when the nation’s largest
bank by assets rolled out its
next pilot program to use
the record-keeping technology, known as blockchain. The
initiative
will
enable
the faster, more secure transfer of cross-border payments
between J.P. Morgan, Royal
Bank of Canada and Australia
& New Zealand Banking Group
Ltd.
The new program doesn’t
use and won’t trade bitcoin,
which has generated skepticism from a wide variety of financiers, including Mr. Dimon
and BlackRock Inc. CEO Laurence Fink. But it will use
technology that underpins the
second-largest virtual currency
behind
bitcoin,
ethereum.
Both cryptocurrencies have
soared this year in part due to
optimism about the blockchain
technology they use to track
trades. In J.P. Morgan’s case,
executives say the technology
can significantly speed up
global payments.
Processing
cross-border payments today means
dealing with a complex web of
layers of communication between various participants to
verify and process transactions.
In
some
cases, global transactions from
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
Fund
Data provided by
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of
at least $500 million each. NAV is net asset value. Percentage performance figures
are total returns, assuming reinvestment of all distributions and after subtracting
annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees.
NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date
return. 3-YR%RET is trailing three-year return annualized.
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply,
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not
available due to incomplete price, performance or cost data. NE-Not released by Lipper;
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
Fund
Monday, October 16, 2017
Net YTD
Net YTD
NAV Chg %Ret Fund
American Century Inv
44.00 +0.10
Ultra
American Funds Cl A
31.43 +0.04
AmcpA p
AMutlA p 40.99 +0.02
BalA p
27.24 +0.01
12.98 -0.02
BondA p
63.07 -0.10
CapIBA p
CapWGrA 51.98 -0.04
EupacA p
57.00 +0.07
62.69 +0.09
FdInvA p
50.50 +0.10
GwthA p
10.48
...
HI TrA p
ICAA p
40.89 +0.07
IncoA p
23.49
...
44.66 +0.02
N PerA p
46.82 +0.15
NEcoA p
NwWrldA
26.1 SmCpA p
TxExA p
17.1 WshA p
12.9
11.5
3.5
12.1
20.4
29.0
17.3
20.1
6.5
14.2
10.8
26.4
30.2
NAV Chg %Ret Fund
66.33 +0.05
56.35 -0.05
13.04 +0.01
44.94 +0.03
28.9
22.6
4.9
13.9
10.93 -0.01
11.29 -0.01
BlackRock Funds A
...
GlblAlloc p 20.27
BlackRock Funds Inst
22.75
...
EqtyDivd
20.40
...
GlblAlloc
7.85
...
HiYldBd
...
StratIncOpptyIns 9.97
Bridge Builder Trust
CoreBond
10.22 -0.01
Del Invest Instl
4.0
4.4
Baird Funds
AggBdInst
CorBdInst
11.5
11.4
11.7
7.5
4.2
3.9
Value
Net YTD
NAV Chg %Ret
20.98 -0.01
Dimensional Fds
5GlbFxdInc 11.03 -0.01
EmgMktVa 30.47 +0.12
EmMktCorEq 22.52 +0.05
...
IntlCoreEq 14.21
19.81 +0.02
IntlVal
IntSmCo
21.56 -0.02
23.52 +0.01
IntSmVa
US CoreEq1 21.83 +0.04
US CoreEq2 20.75 +0.05
36.36 +0.03
US Small
US SmCpVal 39.01 +0.03
US TgdVal 25.01 +0.03
38.52 +0.10
USLgVa
Dodge & Cox
Balanced 109.09 +0.18
7.9
2.3
29.0
31.6
24.1
20.9
26.0
24.4
14.6
12.8
8.2
4.8
5.0
11.4
9.0
GblStock
Income
Intl Stk
Stock
individuals or large corporations that could take as long
as 15 days now could be
shaved down to hours.
The new network will essentially link bank information together through a secure distributed ledger. That
better connects the parties, which will continue to
keep reams of their own information on separate private
servers.
Connecting
the
data
through the shared network
should significantly reduce the
number of steps needed, for
instance, to check and rectify
mismatches in a cross-border
payment.
J.P. Morgan receives on average 150,000 inquiries on
payments annually. Those inquiries can range from getting
the full client name, address
Net YTD
NAV Chg %Ret Fund
14.06 +0.04 18.1
13.84 -0.01 4.1
47.05 +0.08 23.5
201.51 +0.57 12.4
DoubleLine Funds
... 3.8
TotRetBdI 10.72
TotRetBdN 10.71 -0.01 3.5
Edgewood Growth Instituti
EdgewoodGrInst 29.51 -0.08 32.9
Federated Instl
... 12.6
StraValDivIS 6.48
Fidelity
500IdxInst 89.49 +0.16 16.0
500IdxInstPrem 89.48 +0.16 16.0
500IdxPrem 89.48 +0.15 16.0
ExtMktIdxPrem r 62.54 +0.02 14.0
IntlIdxPrem r 43.19 -0.02 22.4
TMktIdxF r 74.32 +0.11 15.7
TMktIdxPrem 74.31 +0.11 15.7
USBdIdxInstPrem 11.64 -0.01 3.4
USBdIdxPrem 11.64 -0.01 3.4
Fidelity Advisor I
NwInsghtI 32.83 +0.03 22.9
Fidelity Freedom
FF2020
16.68 +0.01 13.1
14.43 +0.01 14.0
FF2025
18.06 +0.02 16.3
FF2030
Fidelity Invest
Balanc
23.59
... 13.7
85.97 +0.19 30.3
BluCh
124.16 +0.17 26.9
Contra
124.15 +0.17 27.0
ContraK
10.29
... 10.4
CpInc r
DivIntl
41.41 -0.06 24.4
179.97 +0.82 31.6
GroCo
GrowCoK 179.92 +0.82 31.7
7.95 -0.01 3.7
InvGB
or date of birth to a digit
missing from an account number, said Emma Loftus, head of
global payments and foreign
exchange for J.P. Morgan Treasury Services.
Ms. Loftus said the bank
will also use its traditional
payment methods as it tests
the pilot program.
RBC and ANZ are the first
two banks to join the network, dubbed Interbank Information Network, but J.P. Morgan hopes to increase the
number of bank partners to
about two dozen in the
next six to 12 months, she
said.
Executives at RBC and ANZ
said they joined with J.P. Morgan in efforts to improve their
cross-border payments.
—Ryan Tracy
contributed to this article.
Net YTD
NAV Chg %Ret Fund
InvGrBd
11.32 -0.01
52.17 +0.02
LowP r
LowPriStkK r 52.13 +0.02
104.06 +0.22
MagIn
106.65 +0.28
OTC
22.88 +0.02
Puritn
SrsEmrgMkt 21.41 +0.04
SrsGroCoRetail 17.67 +0.08
SrsIntlGrw 16.23 -0.02
SrsIntlVal
10.84 +0.01
TotalBond 10.70 -0.01
Fidelity Selects
Biotech r 231.43 +0.08
First Eagle Funds
60.28 -0.01
GlbA
FPA Funds
35.24 +0.07
FPACres
FrankTemp/Frank Adv
NA
...
IncomeAdv
FrankTemp/Franklin A
CA TF A p
NA
...
NA
...
Fed TF A p
IncomeA p
NA
...
RisDv A p 59.93 +0.05
FrankTemp/Franklin C
NA
...
Income C t
FrankTemp/Temp A
GlBond A p 12.14 -0.01
Growth A p 27.02 -0.02
FrankTemp/Temp Adv
GlBondAdv p 12.09 -0.01
Harbor Funds
CapApInst 74.15 +0.15
IntlInst r
70.47 -0.07
Harding Loevner
IntlEq
NA
...
Invesco Funds A
4.1
13.8
13.9
20.6
33.8
14.7
36.4
32.3
26.8
18.3
4.0
33.0
11.1
9.3
NA
NA
NA
NA
14.8
NA
3.5
14.7
3.6
30.9
20.6
NA
EqIncA
Net YTD
NAV Chg %Ret Fund
11.23 +0.01
John Hancock Class 1
15.92 +0.01
17.06 +0.01
John Hancock Instl
DispValMCI 23.95 +0.04
JPMorgan Funds
...
MdCpVal L 39.81
JPMorgan I Class
CoreBond
11.66 -0.02
JPMorgan R Class
CoreBond
11.68 -0.01
Lazard Instl
EmgMktEq 19.87 +0.02
Loomis Sayles Fds
14.25 -0.01
LSBondI
Lord Abbett A
...
ShtDurIncmA p NA
Lord Abbett F
NA
...
ShtDurIncm
Metropolitan West
10.69 -0.02
TotRetBd
TotRetBdI 10.69 -0.01
TRBdPlan 10.06 -0.01
MFS Funds Class I
ValueI
40.75 +0.05
MFS Funds Instl
25.48 -0.05
IntlEq
Mutual Series
32.74 +0.04
GlbDiscA
33.42 +0.05
GlbDiscz
Oakmark Funds Invest
33.83 +0.04
EqtyInc r
84.00 +0.40
Oakmark
OakmrkInt 29.08 -0.02
Old Westbury Fds
LrgCpStr
14.88 +0.01
LSBalncd
LSGwth
WASHINGTON—The
Supreme Court intervened in a
high-stakes case for the creditcard industry Monday, saying it
will review a government antitrust challenge to American Express Co. rules that bar merchants from steering customers
to cards that charge lower fees.
The court’s move marks the
latest turn in a long-running antitrust case against the creditcard giant. At issue are the fees
that AmEx charges merchants
when consumers use its cards at
their stores. AmEx’s card policy
says that merchants that choose
to accept AmEx cards can’t
steer consumers to use cards on
other networks, like Visa or
Mastercard.
Federal and state antitrust
enforcers have argued the AmEx
rules are an unlawful restraint
on trade. AmEx disputes the allegations and says its rules are
good for cardholders.
The company appeared to
have the upper hand in the litigation last year after winning a
major decision from the Second
U.S. Circuit Court of Appeals in
New York. That ruling reversed
a trial judge who said AmEx violated U.S. antitrust law because
it didn’t allow stores that accept
AmEx cards to encourage shop-
Net YTD
NAV Chg %Ret Fund
7.5 Oppenheimer Y
42.62 +0.12
DevMktY
12.8 IntGrowY
43.05 -0.15
16.1 Parnassus Fds
ParnEqFd
43.33 -0.06
11.6 PIMCO Fds Instl
NA
...
AllAsset
9.4 TotRt
10.32 -0.02
PIMCO Funds A
3.6 IncomeFd
12.44 +0.01
PIMCO Funds D
3.7 IncomeFd
12.44 +0.01
PIMCO Funds Instl
25.1 IncomeFd
12.44 +0.01
PIMCO Funds P
7.2 IncomeP
12.44 +0.01
Price Funds
NA BlChip
95.21 +0.04
CapApp
29.47 -0.05
NA EqInc
34.58 +0.05
68.72 +0.12
EqIndex
2.9 Growth
68.69 +0.05
3.2 HelSci
74.07 -0.10
3.3 InstlCapG
38.55
...
19.29 -0.03
IntlStk
13.7 IntlValEq
15.42 -0.02
91.22 +0.04
MCapGro
25.8 MCapVal
31.04 +0.02
N Horiz
55.00 +0.07
8.8 N Inc
9.53
...
9.1 OverS SF r 11.36
...
23.15 +0.01
R2020
11.2 R2025
17.84 +0.01
15.9 R2030
26.26 +0.01
28.1 R2035
19.19 +0.01
27.55 +0.01
R2040
16.0 Value
38.20 -0.01
Net YTD
NAV Chg %Ret Fund
PRIMECAP Odyssey Fds
35.58 +0.01
33.3 Growth r
24.1 Principal Investors
NA
...
DivIntlInst
11.2 Prudential Cl Z & I
NA
...
TRBdZ
NA Schwab Funds
39.94 +0.07
5.1 S&P Sel
TIAA/CREF Funds
19.18 +0.02
7.3 EqIdxInst
IntlEqIdxInst 20.28
...
7.4 Tweedy Browne Fds
28.47 +0.01
GblValue
7.7 VANGUARD ADMIRAL
500Adml 236.28 +0.41
33.92 +0.02
7.6 BalAdml
CAITAdml 11.85 -0.01
31.1 CapOpAdml r155.56 -0.11
37.48 +0.10
12.5 EMAdmr
11.4 EqIncAdml 75.88 +0.08
15.8 ExtndAdml 82.16 +0.02
29.0 GNMAAdml 10.54 -0.02
25.4 GrwthAdml 69.65 +0.08
31.8 HlthCareAdml r 90.37 -0.39
...
26.2 HYCorAdml r 5.98
25.76 -0.05
20.4 InfProAd
21.0 IntlGrAdml 95.19 +0.14
6.8 ITBondAdml 11.47 -0.02
27.0 ITIGradeAdml 9.84 -0.01
...
3.8 LTGradeAdml 10.66
25.2 MidCpAdml 184.45 +0.11
...
13.4 MuHYAdml 11.42
...
15.1 MuIntAdml 14.23
...
16.6 MuLTAdml 11.71
...
17.8 MuLtdAdml 10.99
...
18.7 MuShtAdml 15.80
13.5 PrmcpAdml r134.31 -0.05
pers to use cheaper cards.
“The earlier decision by the
Second Circuit panel protects a
consumer’s right to choose how
they pay, prevents our card
members from being discriminated against and promotes
competition in the payments industry,” a spokesman for AmEx
said in a statement. “With the
Supreme Court’s decision to
take up this case, we will continue to vigorously defend the
Second Circuit’s decision in favor of American Express.”
Retailers and states praised
the Supreme Court’s decision.
“Retailers have long said
AmEx’s rules are an antitrust violation that deny consumers
truthful information about their
credit cards,” according to a
statement Monday from the Retail Litigation Center.
“The issues in this appeal involve anticompetitive practices
that hinder Ohio consumers and
Ohio retailers and merchants.
We look forward to making our
arguments before the court,”
Ohio Attorney General Mike
DeWine said.
Visa and Mastercard settled
similar government antitrust
claims in 2010, agreeing to drop
their policies that barred merchants from using discounts, rebates or other incentives to encourage customers to pay with
cheaper cards.
Net YTD
NAV Chg %Ret Fund
REITAdml r 119.57 -0.53
24.2 SmCapAdml 68.43 +0.03
STBondAdml 10.45 -0.01
NA STIGradeAdml 10.69 -0.01
TotBdAdml 10.80 -0.01
NA TotIntBdIdxAdm 21.86 +0.02
TotIntlAdmIdx r 29.99 +0.01
16.0 TotStAdml 64.00 +0.09
14.16
...
TxMIn r
15.6 ValAdml
39.45 +0.08
22.5 WdsrllAdml 68.55 +0.05
WellsIAdml 65.13 -0.01
13.7 WelltnAdml 73.34 +0.11
WndsrAdml 78.47 +0.01
16.0 VANGUARD FDS
10.7 DivdGro
26.19 -0.01
5.0 HlthCare r 214.20 -0.94
25.2 INSTTRF2020 22.47 +0.01
28.4 INSTTRF2025 22.73 +0.01
13.2 INSTTRF2030 22.91 +0.01
13.9 INSTTRF2035 23.10 +0.02
2.1 INSTTRF2040 23.28 +0.02
22.6 INSTTRF2045 23.42 +0.02
19.2 IntlVal
39.23
...
7.1 LifeCon
19.83
...
2.0 LifeGro
33.02 +0.02
41.4 LifeMod
26.85 +0.01
4.2 PrmcpCor
26.84
...
4.4 SelValu r
32.92 +0.01
9.5 STAR
27.08
...
14.4 STIGrade
10.69 -0.01
6.9 TgtRe2015 15.89
...
4.8 TgtRe2020 31.52 +0.01
5.8 TgtRe2025 18.47 +0.01
2.7 TgtRe2030 33.36 +0.02
1.4 TgtRe2035 20.48 +0.01
23.4 TgtRe2040 35.26 +0.02
5.1
11.8
1.5
2.3
3.4
1.7
24.1
15.7
23.0
10.9
11.1
7.9
10.8
14.3
13.5
19.2
11.6
13.0
14.3
15.5
16.8
17.3
23.6
9.1
15.5
12.3
21.0
14.4
15.1
2.2
9.5
11.5
13.0
14.2
15.4
16.7
TgtRe2045
TgtRe2050
TgtRetInc
TotIntBdIxInv
WellsI
Welltn
WndsrII
Net YTD
NAV Chg %Ret
22.15 +0.02
35.63 +0.03
13.55 -0.01
10.93 +0.01
26.88 -0.01
42.47 +0.06
38.63 +0.03
VANGUARD INDEX FDS
236.27 +0.42
500
ExtndIstPl 202.76 +0.06
SmValAdml 55.38 +0.01
TotBd2
10.76 -0.02
17.93 +0.01
TotIntl
63.98 +0.09
TotSt
VANGUARD INSTL FDS
33.93 +0.02
BalInst
...
DevMktsIndInst 14.18
DevMktsInxInst 22.16
...
82.16 +0.02
ExtndInst
GrwthInst 69.65 +0.08
InPrSeIn
10.49 -0.02
InstIdx
233.12 +0.41
233.14 +0.42
InstPlus
InstTStPlus 57.41 +0.08
MidCpInst 40.75 +0.03
MidCpIstPl 200.95 +0.12
SmCapInst 68.43 +0.03
STIGradeInst 10.69 -0.01
10.80 -0.01
TotBdInst
TotBdInst2 10.76 -0.02
TotBdInstPl 10.80 -0.01
TotIntBdIdxInst 32.81 +0.03
TotIntlInstIdx r119.91 +0.04
TotItlInstPlId r119.93 +0.04
TotStInst
64.01 +0.09
39.45 +0.08
ValueInst
Western Asset
CorePlusBdI NA
...
17.3
17.2
7.0
1.6
7.8
10.8
11.0
15.9
14.0
7.9
3.4
24.1
15.6
10.7
23.1
23.0
14.0
22.6
2.0
16.0
16.1
15.6
14.4
14.4
11.8
2.3
3.4
3.4
3.5
1.7
24.1
24.1
15.7
10.9
NA
THE WALL STREET JOURNAL.
Tuesday, October 17, 2017 | B11
* * * *
MARKETS
BY DANIEL KRUGER
U.S. government bonds weakened as investors assessed the
potential for tighter monetary
policy in the wake of weakerthan-forecast inflation data.
The yield on
CREDIT
the benchmark
MARKETS 10-year
U.S.
Treasury note
rose to 2.309%,
its biggest single-day gain
since Sept. 27, from 2.280%
Friday. The two-year note
yield, which is more sensitive
to expectations for Federal Reserve policy, rose to 1.542%,
the highest since October
2008, from 1.496% Friday.
Yields rise as bond prices fall.
Yields gained after Fed
Chairwoman Janet Yellen suggested Sunday that she remains inclined to continue raising interest rates, even though
continued economic growth
hasn’t been accompanied by
rising inflation. At a banking
conference in Washington, Ms.
Yellen said her “best guess”
was that inflation would pick
up next year as the labor market strengthens further.
Bonds had strengthened
late last week after the consumer-price index, a measure
of what Americans pay for everything from haircuts to food,
rose 0.5% in September, its
biggest jump since January,
but below the 0.6% forecast by
economists in a Wall Street
Journal survey. Core prices,
which exclude volatile food
and energy costs, rose just
0.1%—below the 0.2% that
economists had forecast.
Inflation is a major threat
to long-term government
bonds because it erodes the
purchasing power of their
fixed payments and can spur
the Fed to raise interest rates.
Based on the Fed’s preferred
measure of inflation, U.S. consumer prices rose 1.4% in August from a year earlier, well below the central bank’s 2% target.
AUCTION RESULTS
Here are the results of Monday's Treasury auctions.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
13-WEEK AND 26-WEEK BILLS
13-Week
26-Week
$133,881,505,200 $120,773,543,500
$42,000,292,200 $36,000,343,500
$541,031,200 $516,643,500
$32,000,000 $400,000,000
99.724472
99.373111
(1.090%)
(1.240%)
1.108%
1.265%
Coupon equivalent
54.07%
30.64%
Bids at clearing yield accepted
912796NN5
912796PB9
Cusip number
Applications
Accepted bids
" noncomp
" foreign noncomp
Auction price (rate)
Both issues are dated Oct. 19, 2017. The 13-week bills
mature on Jan. 18, 2018; the 26-week bills mature on
April 19, 2018.
Financial Stocks Buoy Indexes
BY AKANE OTANI AND RIVA GOLD
Rising shares of financial
companies pushed U.S. stock
indexes to records on Monday.
Gains in U.S. stocks picked
up toward the end of the day,
and the Dow Jones Industrial
Average closed near session
highs.
Data have
MONDAY’S
suggested
MARKETS
global growth
is accelerating,
investors and
analysts said, helping stocks
chug higher even as some investors have expressed concerns about the length and the
largely uninterrupted nature
of the rally.
“While there’s sometimes
going to be noise coming out
of [Washington] D.C., we still
have accommodative central
banks around the world and
benign inflation,” said David
Sadkin, president of Bel Air
Investment Advisors. The
combination should support
stocks, although major indexes
could come under pressure if
central banks raise rates
faster than expected, Mr. Sadkin added.
Banks Bounce
Shares of financial companies took a hit last week after some big
banks reported earnings, but the sector rebounded Monday and is
up so far in October.
438
437
436
435
434
433
432
S&P 500 financials sector
Monday: 436.29
▲1.7% this month
431
430
429
October
THE WALL STREET JOURNAL.
Source: FactSet
Three major U.S. stock indexes notched fresh records.
The Dow Jones Industrial Average rose 85.24 points, or
0.4%, to 22956.96 on Monday,
drawing closer to its next
thousand-point milestone.
The S&P 500 added 4.47
points, or 0.2%, to 2557.64
and the Nasdaq Composite
advanced 18.20 points, or
0.3%, to 6624.00.
Shares of financial companies led U.S. stock indexes
higher after coming under
pressure last week following a
string of earnings reports.
J.P. Morgan Chase added
$1.98, or 2.1%, to $97.84 and
Bank of America rose 41
cents, or 1.6%, to 26.24. Goldman Sachs Group and Mor-
gan Stanley are scheduled to
report earnings Tuesday.
Energy stocks rose alongside oil prices, with Noble Energy and Apache among the
biggest gainers in the S&P 500
energy sector.
U.S. crude for November
delivery gained 0.8% to $51.87
a barrel, notching its fifth advance in six sessions.
Some analysts attributed
the moves to President Donald
Trump’s threat’s to end a 2015
nuclear agreement with Iran,
as well as rising tensions between the Iraqi central government and the Kurdish
semiautonomous
region,
which sparked concern of possible disruption in future oil
supplies.
Corporate news drove
swings in other sectors.
Shares of Nordstrom shed
2.25, or 5.3%, to 40.40 after
the Nordstrom family said it
suspended plans to take the
retailer private until after the
holiday season.
Apple shares added 2.89, or
1.8%, to 159.88 after investment bank KeyBanc Capital
Markets raised its rating on
the stock to overweight from
sector weight and said there
would likely be strong demand
for Apple’s newest smartphone, the iPhone X. The tech
company contributed roughly
20 points to the Dow industrials’ daily gain.
Elsewhere, the Stoxx Europe 600 edged down less
than 0.1% after posting its
fifth straight weekly gain Friday—its longest winning
streak since March 2015.
Spain’s IBEX 35 index fell
0.7%, muting wider gains in
Europe, as political uncertainty continued to steer
Spanish stock performance.
Spain’s prime minister gave
the leader of Catalonia until
Thursday to cease his bid for
independence or face the loss
of some regional powers.
Japan’s Nikkei Stock Average added 0.44% in early trading Tuesday, getting a lift
from a weaker yen and stronger commodities prices. The
Nikkei has risen for 10-consecutive sessions.
Korea’s Kospi was up 0.2%,
helped by a nearly 1% rebound
for Samsung. New Zealand’s
NZX 50 was again trailing
early Tueaday, down 0.2%.
China’s Government Bond Yields Keep Rising
BY SHEN HONG
SHANGHAI—China’s 10-year
government bond yield rose to
its highest level in nearly
three years, just before a Communist Party congress and after a top economic official signaled confidence in strong
growth over the rest of this
year.
The 10-year yield advanced
to 3.71% Monday, up from
3.67% Friday and its highest
since December 2014. Bond
yields rise when prices fall.
Market participants cited
recent solid economic data
and People’s Bank of China
Gov. Zhou Xiaochuan’s weekend prediction that the economy would expand at about a
7% pace in the second half of
2017.
Beijing’s apparent lack of
concern over the recent bond
selloff contrasts with its intervention to damp stock- and
currency-market movements
before top leaders kick off
their twice-a-decade conclave
this week. The meeting is expected to entrench President
Xi Jinping’s position atop the
party.
“The selloff is mostly due to
the recent slew of strong economic data. When the economy is looking good, bond
prices will have to fall, simply
On the Move
The yield on 10-year Chinese
government bonds is at its
highest since 2014.
4.0%
GREG BAKER/AGENCE FRANCE-PRESSE/GETTY IMAGES
Treasurys
Fall After
Yellen’s
Remarks
3.5
3.0
2.5
2015
’16
’17
Source: Wind Info
A poster of Chinese President Xi Jinping with a slogan reading ‘Chinese Dream, People’s Dream.’
THE WALL STREET JOURNAL.
as that,” said Qu Qing, chief
fixed income analyst at Hua
Chuang Securities.
China’s bond market has
come under periodic pressure
in the past year, as Beijing has
raised short-term interest
rates and tightened liquidity
to discourage borrowing by
speculative investors. The
comments from Mr. Zhou appeared to reinforce authorities’ determination to cut ballooning debt, particularly in
the corporate sector.
“Our expectations are indeed that the authorities will
continue to push through the
that is to maintain steady
funding conditions in the
money market.
While the yield on the 10year government bond has
risen 0.11 percentage point in
the past month, the average
yield on five-year AAA-rated
corporate debt, a measure of
financing costs for businesses,
has stayed steady at 4.82%.
“This means the actual
borrowing costs in the real
economy haven’t gone up that
much, which is another reason why the [central bank]
doesn’t appear concerned,”
said Mr. Liu.
deleveraging campaign after
the 19th party congress,” said
Liu Yi, an analyst at Guotai
Junan Securities.
Moreover, China in the past
week has reported strong
trade figures, with both exports and imports higher in
September. And while consumer-price inflation slowed
last month, data Monday
showed, a surprise acceleration in producer prices suggested it could be headed back
upward.
Even so, the latest bond
selloff has come at a sensitive
time, when regulators have
taken extraordinary measures
to preserve financial-market
stability, known as wei wen in
China. Authorities are more
relaxed about bonds because
the market is dominated by
institutional
investors,
steadier than the individual
investors who still dominate
domestic stock markets, said
Mr. Liu.
That strong economic numbers are behind the fall in
bond prices mean Beijing has
less reason to worry, said Mr.
Qu. Authorities want stable
bond markets, he said, but
their way of accomplishing
Palladium Puts the Pedal to the Metal
BY DAVID HODARI
Palladium prices broke
through the $1,000 barrier in
intraday trading, with strong
demand from the auto industry and investor bullishness
briefly
COMMODITIES
pushing
the price to
its highest
level since 2001.
The price of this precious
metal is up 43% this year,
making it one of the best performing assets in global markets.
On Monday, palladium’s
most active contract climbed
to $1,005 a troy ounce in intraday trading, its highest
level since 2001, before retreating and settling down
$9.20, or 0.9%, to $976.30, on
the New York Mercantile Exchange.
As the price soars, though,
analysts are becoming skeptical that it can hold those
gains. Many predict falls of as
much as 15% by the end of
2017.
Palladium, which is used in
the catalytic converters on
cars to sift out pollution, has
gained more than 5% in the
past week alone, pushed
higher by strong auto-industry
data out of China. Chinese
auto sales data for September,
released last week, showed an
8% year-over-year increase in
purchases.
“Those data suggest a move
toward gasoline vehicle sales
and are obviously positive for
palladium prices,” said Simona
Gambarini, a commodities
economist at Capital Economics.
Palladium is used mainly in
gas engines, while platinum is
used in diesel vehicles. Authorities around the world
have said they want to phase
out diesel because of pollution
concerns. Platinum is up about
4% this year.
There have been other auto
trends propelling palladium’s
recent rise. Because the metal
had been cheaper than platinum for so long, car companies had switched to it to save
money.
But some analysts see headwinds for the metal.
Palladium’s newfound premium to platinum will likely
stop auto makers from shifting
to palladium, Macquarie said
in a recent note. Palladium
prices are more than 8%
higher than the bank’s average
price forecast for 2017’s fourth
quarter.
Clearinghouses Get Another Clean Bill of Health
BY GABRIEL T. RUBIN
WASHINGTON — Major
clearinghouses for derivatives
can withstand substantial
stress to the financial system
and avoid a liquidity crunch in
a crisis, the Commodity Futures Trading Commission
said. The report marks the
second time the CFTC has
“stress-tested” the entities
and found they passed.
The CFTC’s report Monday
came a day after National Economic Council Director Gary
Cohn said he was worried
about whether clearinghouses
are being overused, adding
that regulators don’t have
guidelines for resolving a
clearinghouse “in an orderly
fashion.”
Mr. Cohn’s remarks Sunday
at a Group of 30 banking seminar in Washington add to calls
from U.S. policy makers to
keep a close eye on clearing-
houses.
The CFTC tested three of
the largest U.S. clearinghouses—CME Group Inc.’s
CME Clearing, Intercontinental Exchange Inc.’s ICE Clear
U.S. and LCH.Clearnet Group
Ltd.’s LCH Ltd.—and found
that each would be able to
generate sufficient liquidity
to keep markets functioning
even if two of their major
clearing member banks were
to default.
Clearinghouses,
mostly
used by banks and investment
firms, are meant to help avoid
a marketwide collapse by making sure that either party in a
derivatives transaction is paid
if the other side falters.
Their role has expanded
since the 2008 financial crisis
as regulators encouraged derivatives to be routed through
them.
Clearinghouses
conduct
their own tests to determine
how they would function under
extreme market conditions.
While the CFTC tests examined
what would happen if two major clearing members defaulted, some clearinghouses
test what would happen if as
many as four member banks
failed simultaneously. Given the
Gary Cohn has
expressed
worry about
whether
clearinghouses
are being
overused.
size of clearing member banks,
such a situation would likely be
in the midst of a major financial crisis.
The supersizing of certain
clearinghouses after the financial crisis has gotten significant attention from U.S. policy
makers in recent months. The
House Agriculture Committee
held a July hearing devoted to
clearinghouse resolution, and
Federal Reserve governor Jerome Powell has said repeatedly in public remarks that
stress tests for clearinghouses
must be more robust and reflective of the risk they pose
to financial stability.
“Central clearing will only
make the financial system
safer if [clearinghouses] themselves are run safely,” Mr.
Powell, who is said to be a top
candidate for Fed chairman,
said in a June speech.
The Treasury Department
has also taken an interest in
stress tests for clearinghouses,
saying in its report on capital
markets this month that regulators should build on existing
tests to make sure clearinghouses have plans for winding
down in an orderly fashion in
the event of a major crisis.
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available by calling phone number listed above. An investor should carefully
read the Fund’s prospectus before investing. The information in this
communication is not complete and may be changed. The Fund may not sell
with the Securities and Exchange Commission. This communication is not an
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B12 | Tuesday, October 17, 2017
THE WALL STREET JOURNAL.
MARKETS
Oil Rises With Global Political Tensions
Skirmishes, uncertain
Supply Threats
Trump policy start
The price of Brent crude rose Monday, after a clash between Kurdish fighters and Iraqi fighters
to drive up prices
raised concerns among traders that oil supplies from the region could be constrained.
as supplies get tighter Brent crude-oil price
BY ALISON SIDER
The oil market is once
again grappling with geopolitical risk.
Oil prices rose Monday to
an almost three-week high on
escalating
COMMODITIES tensions in
the Middle
East
and
shifting U.S. policy toward
Iran that could interrupt the
flow of crude.
Geopolitical skirmishes typically raise fears of shortages
and cause oil prices to push
higher. But for more than three
years, a global supply glut in
crude blunted the impact from
such conflicts to prices.
That is starting to change
as global oil supplies become
tighter, analysts said.
“It is the first time since
2014 that we have had geopolitical risk add a premium to
the oil price in a reflection
that the oil market is getting
tighter,” said Bjarne Schieldrop, chief commodities analyst at SEB Markets.
Clashes between Iraqi
forces and Kurdish fighters in
the oil-rich province of Kirkuk
early Monday helped push
prices higher Monday, analysts
and traders said.
U.S. crude futures settled
up 42 cents, or 0.8%, at $51.87
a barrel. Brent, the global
benchmark, rose 65 cents, or
1.1%, to $57.82 a barrel on ICE
Futures Europe.
“It’s something you can’t
ignore,” said Mark Benigno,
co-director of energy trading
at INTL FCStone.
Iraqi Kurdistan has built its
own oil industry in defiance of
Iraq’s central government in
Baghdad. It exports nearly
600,000 barrels of oil a day,
mostly through a pipeline that
Email: heard@wsj.com
Netflix Needs
To Feed
The Beast
Perhaps Netflix could
name one of its new shows:
“Easy Come, Easy Go.”
Investors would appreciate the irony. The streaming
media company announced
price increases two weeks
ago. Those increases are expected to generate more
than $600 million in extra
revenue next year. Investors
greeted the price bump by
giving Netflix shares a 10%
bump of their own since the
announcement.
The money, alas, will only
go so far. In its third-quarter
results announced late Monday, Netflix said it plans to
spend between $7 billion and
$8 billion on original content
next year. That would be after dropping a record $6 billion this year. The company
said it will continue to tap
the debt market for the
funds. Long-term debt has
risen 45% since the first of
the year to $4.9 billion.
Yet Netflix investors covet
growth above all other metrics, so the shares shrugged
off the new spending forecast after the company once
again saw a strong jump in
streaming subscribers for
the third quarter. That enthusiasm comes despite the
fact that Netflix said it expects to add 6.3 million new
subscribers in the fourth
quarter, below the 7.1 million
added in the year-ago period.
Slower growth probably is
due in part to the price increases. Netflix still will end
the year with more than 115
million global subscribers.
That means more money
needs to keep flowing out
the door to fund the kinds of
shows that keep these users
engaged and willing to pay.
In a market becoming more
competitive by the day, Netflix can’t afford to have its
users change the channel.
—Dan Gallagher
$58 a barrel
56
54
52
50
48
46
Monday
$57.82 a barrel
44
Jan.
Feb.
March
April
May
The conflict marks the return of geopolitical risk
after a period of fewer disruptions to oil output.
Unplanned supply disruptions
June
July
Aug.
Sept.
Oct.
Prices have also climbed recently on signs
that the global supply of crude is tightening.
OECD stockpiles
3.5 million barrels a day
Non-OPEC
OPEC
3.0
1.24 billion barrels
1.22
1.20
1.18
2.5
1.16
2.0
Aug. Sept. Oct. Nov. Dec. Jan. Feb. March April May June July Aug.
A falling count for active U.S. rigs has helped buoy oil prices.
1.5
780 oil rigs
760
1.0
740
0.5
720
0
700
2014
’15
’16
June
’17
July
Aug.
Sources: WSJ Market Data Group (Brent); Energy Information Administration (disruptions);
International Energy Agency (stockpiles); Baker Hughes (rig count)
runs to Turkey. Concerns
about the flow of that oil have
been mounting since the region voted to break away from
Iraq in an independence referendum last month.
With Iraqi forces now controlling some Kurdish oil
fields, it seems likely that
some shipments—as much as
400,000 barrels a day—will be
stopped, at least until Iraq repairs its own pipeline to Turkey or the two sides reach a
revenue-sharing agreement,
according to Eurasia Group.
The oil market is also gauging the impact of U.S. President Donald Trump’s threat to
end a 2015 nuclear agreement
Sept.
Oct.
THE WALL STREET JOURNAL.
with Iran. Mr. Trump last
week refused to certify to Congress that Iran was complying
with its obligations under the
agreement. Congress has 60
days to decide whether to reimpose sanctions on Tehran.
Iranian oil exports have returned to their pre-sanction
levels, according to analysts at
Barclays, and the shift could
cast a chill over Iran’s oil industry.
“The lack of clarity on the
nuances of President Trump’s
new policy sets the stage for
heightened uncertainty in energy markets during the
fourth quarter and casts doubt
on the likelihood of any in-
HEARD ON THE STREET
FINANCIAL ANALYSIS & COMMENTARY
Cement Firm Has a Solid Choice
Bull markets bring riches
and temptation alike.
Materials investors ought to
be wary of the latter.
CRH, an Irish buildingmaterials company,
announced an all-cash bid to
acquire U.S.-based Ash
Grove Cement for $3.5
billion last month. Ash Grove
is the fifth-largest cement
producer in the U.S., and
CRH is its largest customer.
That proposed deal is, in
many ways,
unremarkable. The
fragmented nature of the
cement industry makes
acquisitions a fact of life,
and the deal would be a
fairly small transaction for a
company the size of CRH,
which has a market value
north of $30 billion.
But the situation became
complex on Oct. 5. Ash Grove
said that it had received a
Risky Mix
Net debt to Ebitda ratios
5
4
3
2
1
0
CRH
Summit Materials
Note: Ebitda: earnings before interest,
taxes, depreciation and amortization
Source: FactSet
preliminary bid valued at
more than $3.7 billion from
another suitor that it didn’t
identify. That bidder is U.S.based Summit Materials,
according to people familiar
with the matter.
It is unclear whether
Summit, which says it
doesn’t comment on market
rumors, made its bid in
cash, stock or a
combination of both.
Ash Grove, which will
need to approve either offer,
must be pleased that its
assets are in such high
demand, but it should weigh
more than the total
transaction value when
considering its options.
The underlying industry’s
fortunes depend on the
strength of the broader
economy. That means a
comparison of each suitor’s
balance sheet and earnings
power is in order.
CRH pays a dividend yield
of 2%, which is well covered
by the profit it generates. It
booked nearly $3.5 billion in
earnings before interest,
taxes, depreciation and
amortization, or Ebitda, in
the 12 months ended in
June, according to FactSet. It
had about $7 billion in net
debt as of June 30.
Summit, by contrast,
doesn’t pay a dividend and
carries significantly more
debt relative to its
profitability. It showed
nearly $1.5 billion in net
debt on the balance sheet as
of June 30, against $358
million in trailing 12-month
Ebitda.
Granted, an all-cash offer
would limit risk for Ash
Grove shareholders. But
Summit would still need to
arrange financing, which
carries inherent risks before
a deal could be closed. And
including stock in any deal
would mean Ash Grove
shareholders hitch their
wagon to a heavily indebted
firm in a cyclical industry.
Abundant capital is a good
thing for investors as long as
the companies you own don’t
overextend themselves.
—Charley Grant
crease in oil supply from Iran
in the medium term,” the Barclays analysts wrote.
The growing anxiety reflects
a shift in the market. Investors
had been “somewhat complacent” about the risks that military clashes or natural disasters
could choke off oil supplies,
said Giovanni Staunovo, a commodities analyst at UBS Wealth
Management.
But now there is a growing
risk that production outages
could lift prices by a few dollars, Mr. Staunovo wrote in a
client note Monday.
Oil prices have been on the
rebound since the summer, as
confidence has grown in efforts by the Organization of
the Petroleum Exporting Countries and other exporters to
hold production down all year.
OPEC has said that petroleum inventories in the OECD
states stand about 170 million
barrels above the five-year average—about half the size of
the overhang at the start of
the year. Russia and Saudi
Arabia recently signaled that
they will work to extend the
oil-production cap beyond
March 2018.
The ability of U.S. shale producers to quickly respond to
higher prices has been a big
reason that oil prices haven’t
been reacting much to turmoil,
said Greg Priddy, director of
global energy at Eurasia Group.
That is likely one reason oil
prices haven’t reacted much
yet to Mr. Trump’s threats to
end the Iran deal, he said.
But there are signs that
shale growth is slowing. Oil
prices turned positive toward
the end of last week following
data that showed a largerthan-expected fall in weekly
U.S. crude-oil inventories. That
was buttressed by Baker
Hughes data showing that the
number of rigs drilling for oil
in the U.S. fell by five to 743
last week.
—Biman Mukherji
and Neanda Salvaterra
contributed to this article.
WSJ.com/Heard
OVERHEARD
Think the market has been
quiet? It may be about to get
quieter still.
For all the political turmoil
in Washington and the world
lately, stocks are remarkably
stable. The VIX, popularly
known as the stock market’s
“fear gauge,” is near its lowest level on record.
Now that earnings season
is under way, market movements could get more muffled. Companies that had bad
earnings news have for the
most part already warned.
Strategists at Cornerstone Macro point out that
during peak earnings season,
volatility has lately tended
to decline.
The one real risk may be
that when everybody expects
the market to not run into
trouble they can be awfully
surprised if it does.
China’s Greatest Challenge Is Balancing Revamp, Growth
Ending China’s
dependence on debt-fueled
growth may be the easy part
of Beijing’s financial
overhauls. Dismantling the
complex and opaque system
that arose to satisfy the
country’s insatiable demand
for borrowing will be harder
and more dangerous.
Chinese President Xi
Jinping has been trying to
get a grip on the country’s
financial system since he
took office five years ago,
with Beijing’s efforts
ramping up in the past year.
The government pricked
asset bubbles by pushing up
interest rates while injecting
cash to contain the damage.
It issued new rules to rein in
largely unregulated financial
products that boosted
lending.
Yet the scale of the
problem remains daunting.
China’s economy has become
dependent on its shadow
banking sector for credit,
Gaining Ground
Makeup of China’s financial sector
100%
Others
Central bank assets
80
Other depository
corporations
60
Big banks
40
Midsize and
smaller banks
20
Nonbank financial
institutions
0
2010
Source: Moody’s Investors Service
boosting its assets to nearly
$20 trillion at the end of last
year, according to Nomura, a
sixfold increase in six years.
Banks have been the
biggest enablers of the
growth of the system’s dark
underbelly. Recently, they
have found important allies
in nonbank financial
2016
THE WALL STREET JOURNAL.
institutions—a raft of trust
companies, insurers, fundmanagement companies and
securities firms that
collectively hold some 20%
of Chinese financial assets,
according to Moody’s, up
from 9% in 2010.
In sturdy financial
systems, nonbanks help fill
gaps left by banks. In China,
though, they add to the
system’s peculiar distortions.
Banks can sell bad loans to a
nonbank. It can then package
them as investments that it
can resell back to the bank.
Such transactions help banks
artificially reduce
nonperforming loan levels
and capital requirements.
Nonbanks have also
helped banks issue wealthmanagement products. Banks
sell these high-yielding
investments to Chinese
savers, pocketing the fee
income but shuffling the
funds off the balance sheet.
There are two main risks.
These products are usually
short-term, leveraged
investments that often put
their money in longer-term
assets like bonds, creating
potential maturity
mismatches. And while
banks have explicitly
guaranteed only about a
third of the products, there’s
a high probability customers
would demand compensation
if the investments fail.
Mr. Xi’s big task is to rein
in credit growth and
eliminate the distortions in
China’s financial system
without slowing economic
growth. That will be tricky.
So far, every time China has
tightened liquidity, cracks
have appeared and markets
have tumbled until the
government eased its grip.
If banks are forced to
start recognizing more bad
loans, they will likely cut
back new lending. And
clamping down on wealthmanagement products will
cut bank’s income.
If Mr. Xi doesn’t take the
pain needed to tame the
financial system now, its
hydra-like growth will add
further distortions to the
economy. If he does, the risk
is that the Chinese economy
slows significantly.
—Anjani Trivedi
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