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The Wall Street Journal - 26 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
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A Return to Harvest After California Wildfires
What’s
News
Business & Finance
T
he FCC plans to eliminate or scale back limits on local ownership of
TV stations and newspapers, its chairman said. A1
Franklin Resources sold
its entire stake in Puerto
Rico bonds, part of an exodus of investors in the wake
of recent hurricanes. B1
Amazon unveiled a system that lets customers
open their homes remotely
for package deliveries. B2
Sprint and T-Mobile
both canceled earnings calls
this week, a possible sign
they are near a deal. B7
The Saudi wealth fund
aims to nearly double the
value of its assets to about
$400 billion by 2020. B11
Anthem expects its enrollment in ACA plans to fall
by around 70% in 2018. B2
Visa posted an 11%
profit rise, adding more
fuel to its stock rally. B11
Coke said its newest diet
soda helped keep soda volume flat last quarter. B3
World-Wide
Republicans sparred
with Trump over 401(k)
plans on the eve of a House
vote that is crucial to their
tax-cutting ambitions. A1
Iraq’s premier said he
would keep close ties with
both the U.S. and Iran despite
tensions between the two. A1
Iraqi Kurds offered to
shelve their pursuit of statehood for now as the U.S.
seeks to ease tensions. A7
China’s Communists
unveiled a Politburo without a potential successor
to Xi, as the party moved
closer to one-man rule. A6
A bipartisan health bill
in the Senate would cut the
deficit nearly $4 billion over
a decade, the CBO said. A4
Clinton’s campaign and
the DNC helped fund research that led to a file of
unverified allegations about
Trump’s Russia links. A5
A data firm hired by
Trump’s campaign approached WikiLeaks’ Assange before the election. A5
Airlines are alerting
U.S. bound passengers of
tighter screening due to
new security rules. A3
A teenage migrant obtained an abortion following a legal clash with the
Trump administration. A3
India and the U.S., during
a visit by Tillerson, agreed
to bolster security. A7
Gene researchers created a new Crispr-based
system to edit RNA. B4
CONTENTS
Business News B3,11
Capital Account.... A2
Crossword.............. A14
Heard on Street.. B13
Life & Arts....... A11-13
Management.......... B6
Markets............. B12-13
Opinion.............. A15-17
Sports....................... A14
Technology.......... B4-5
U.S. News............. A2-5
Weather................... A14
World News. A6-7,18
>
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
NEW SEASON: A worker carried a bucket of freshly picked Syrah grapes during a harvest on
Wednesday in Kenwood, Calif., two weeks after wildfires ripped through Sonoma and Napa counties.
Mutual-Fund Ratings
Are Not What They Seem
Morningstar’s top-ranked funds rarely sustain high performance
Millions of people trust
Morningstar Inc. to help
them decide where to put
their money.
By Kirsten Grind,
Tom McGinty
and Sarah Krouse
From pension funds to endowments to financial advisers to individuals, investors
rely on Morningstar’s star
ratings to help divide $16
trillion among America’s mutual funds, in much the way
shoppers use Amazon’s ratings to pick products. A lot
of these investors, and the
people paid to guide them,
take for granted that the
number of stars awarded to
a mutual fund is a good
guide to its future performance.
By and large, it isn’t.
The Wall Street Journal
tested Morningstar’s ratings
by examining the performance of thousands of funds
dating back to 2003, shortly
after the company began its
current system. Funds that
Abadi Tells
U.S. and Iran:
No Fighting
On My Turf
BY YAROSLAV TROFIMOV
Kenya’s high court
failed to block a repeat
election for president. A7
YEN 113.74
at a congressional hearing on
Wednesday.
Television station owners
have complained that federal
rules—originally enacted in part
to ensure a diversity of views—
have hindered their efforts to
grow and compete at a time
when online competitors have
made major inroads.
In recent years, the local TV
station business has consolidated rapidly, driven by both
the growing fees that cable and
satellite companies pay for the
right to retransmit broadcast
signals—bigger station groups
can extract higher fees—and increasing competition from the
Please see RULES page A5
Trump, GOP Spar
Over Tax Details
JUSTIN SULLIVAN/GETTY IMAGES
Boeing said it may boost
output to meet demand for
single-aisle jets as it posted
forecast-beating earnings. B3
EURO $1.1813
FCC to Lift
Limits on
Media Deals
WASHINGTON—The Federal
Communications Commission is
planning to make sweeping
changes to media-ownership
rules next month, eliminating or
scaling back longstanding limits
on local ownership of TV stations and newspapers, its chairman said Wednesday.
The plan by FCC Chairman
Ajit Pai, a Republican, would
eliminate or reduce several regulatory
barriers—including
some from the 1970s—that limit
ownership of multiple media
outlets in the same market. Mr.
Pai outlined aspects of the plan
Weinstein Co.’s talks with
suitor Colony Capital have
stumbled and the troubled studio may seek other bidders. B1
The Dow tumbled 112
points to 23329.46, its worst
day since early September,
on weak earnings. B12
GOLD $1,275.40 À $0.40
BY JOHN D. MCKINNON
AND KEACH HAGEY
Vistra and Dynegy are in
advanced talks to combine,
with a deal between the two
Texas power firms possible
as soon as next week. B1
HHHH $4.00
WSJ.com
THURSDAY, OCTOBER 26, 2017 ~ VOL. CCLXX NO. 99
* * * * * *
BAGHDAD—Iraqi
Prime
Minister Haider al-Abadi insisted he would keep close ties
with both the U.S. and Iran
even as tensions rise between
the two, and warned them
both away from competing on
Iraq’s turf as he reclaims it
from the retreating forces of
Islamic State and the Kurds.
Mr. Abadi also said he
wants U.S. forces to remain in
Iraq after the last remaining
Islamic State redoubts are liberated, and he pledged to disarm Iranian-backed Shiite
Muslim militias that refuse to
come under his control.
In an interview with The
Wall Street Journal and two
Please see IRAQ page A7
Under fire, Kurds offer
Baghdad a concession.......... A7
earned high star ratings attracted the vast majority of
investor dollars. Most of
them failed to perform.
Of funds awarded a coveted five-star overall rating,
only 12% did well enough
over the next five years to
earn a top rating for that period; 10% performed so
poorly they were branded
with a rock-bottom one-star
rating.
The falloff in performance
was even more dramatic for
domestic stock funds, the
largest category of U.S.
funds by assets.
Billions of investor dollars
hang in the balance. Nearly
every asset manager in the
world pays Morningstar for
data services. Some 250,000
financial advisers rely on
Morningstar’s data, services
or ratings, according to the
firm. That means Morningstar’s analysis and ratings
influence investment decisions for a vast landscape of
retirement plans and brokerage accounts.
Please see STARS page A8
Five-Star Funds
Only 14% of funds that received
a five-star overall rating from
Morningstar performed at that
level over the next three years.
Five stars
Four stars
Three stars
Two stars
One star
Merged/
Liquidated
Source:
WSJ analysis of
Morningstar data
THE WALL STREET JOURNAL.
At 87, a Stogie-Toting Legend
Mourns the End of Trading Floors
i
i
i
Characters like ‘Cigar King’ built Hong
Kong’s stock exchange—now it’s closing
WASHINGTON—Republicans disagreed with the White
House over tax treatment of
401(k) plans and sought to resolve differences over state
By Richard Rubin,
Anne Tergesen
and Siobhan Hughes
and local taxes on the eve of a
House vote that is crucial to
their tax-cutting ambitions.
The jostling showed the
challenge the party faces as
House lawmakers prepare to
lay out the fine print next
week of their planned tax
overhaul. Republicans have
made public broad plans to reduce individual and corporate
tax rates, but have left out
many knotty details over who
wins and who loses, and which
breaks stay and which change.
As those details emerge, political resistance is building in the
White House and beyond.
Rep. Kevin Brady (R.,
Texas), chairman of the
House’s tax-writing Ways and
Means Committee, said lawPlease see TAXES page A4
Greg Ip: Why innovation tops
tax cuts......................................... A2
Bipartisan health proposal
gains support............................ A4
Big Investors Bail on Puerto Rico
A swath of mutual and hedge funds that own some of the island’s
$70 billion of bonds are now selling, sending trading volume
soaring. Franklin Mutual Advisers has sold its $294 million stake. B1
Puerto Rico’s general obligation bond maturing in 2035, closing price
100 cents on the dollar
80
60
40
20
0
2015
’16
’17
Trading volume in Puerto Rico bonds*
$8 billion
6
4
2
0
2015
’16
’17
*Total face amount of bonds traded, monthly.
Sources: Thomson Reuters (prices); Municipal Securities Rulemaking Board (trading)
World’s First
“Self-Driving”
Database
BY STEVEN RUSSOLILLO
so much business.”
As a 14 year-old from
HONG KONG—David Tung Shanghai with just four years
Wai recently visited the trad- of schooling, Mr. Tung started
ing floor of Hong Kong’s stock in stocks in 1945 and had a
exchange. He did so with the ringside seat for every peak
and valley of the
reverent sadness
global postwar econone shows for an elomy. This March,
derly friend in dewhen he hung up his
clining health.
red broker’s jacket
“It’s
changed,”
after more than 70
said Mr. Tung, 87.
years, he was one of
“It’s different. I miss
the oldest brokers
it. I really miss it.”
trading on any floor
During its heyday
anywhere, according
in the early 1990s,
to executives at mathe exchange was
jor exchanges.
among the world’s
Now, the trading
largest, and Mr. David Tung Wai
floor will close for
Tung worked among
more than 1,000 shouting, jos- good on Friday, leaving oldtling and gesturing traders. school brokers like Mr. Tung
“Cigar King” was his nick- with only the memories.
“I’m very sad,” he said,
name, a nod to the stogie he
habitually chomped. “We were walking around the nearly-siPlease see TRADER page A6
so busy,” he said. “I was doing
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No Human Labor – Half the Cost
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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
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 | Thursday, October 26, 2017
THE WALL STREET JOURNAL.
* ****
U.S. NEWS
CAPITAL ACCOUNT | By Greg Ip
Why Innovation Tops Tax Cuts
Circularis Power Reserve
CCP317G
Arizona Fine Time Scottsdale, AZ
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Old Northeast Jewelers Tampa & St. Petersburg, FL
Exquisite Timepieces Naples, FL
Worthmore Jewelers Atlanta, GA
Little Treasury Jewelers Gambrills, MD
Danson Jewelers Hasbrouck Heights, NJ
Bassano Jewelry New York, NY
Martin Pulli Fine Jewelry Philadelphia, PA
Saltzman’s Watches Cranston, RI
You’d think
from the debate raging in
Washington
that taxes are
the key to
economic growth. They
aren’t. In the long run, innovation matters way more,
and that depends on inspiration, experimentation and
luck, not tax-law changes.
Yet presidents matter for
promoting innovation.
Under President Donald
Trump the place to look is
the regulators. Two of his
appointees in particular,
Food and Drug Administration Commissioner Scott
Gottlieb and Federal Communications Commission Chairman Ajit Pai, have prioritized reducing regulatory
hurdles to private investment as a way of boosting
innovation. The efforts merit
more attention at a time
when the growth debate is
focused on steep, deficit-financed tax cuts.
C
onsider pharmaceutical
companies. Though vocal advocates of slashing
the corporate tax rate, their
bigger problem is the staggering cost of development: $2.6
billion on average to bring a
new drug to market, according to Tufts University’s Center for the Study of Drug Development. Between 1989 and
2011 the cost per patient of a
clinical trial more than doubled, after inflation, according
to one study.
This in great part is because the most treatable diseases already have therapies,
leaving only the toughest
ones. But regulation may
also play a role.
“Through regulation we
have imposed additional
steps: There are things you
need to do as part of product
development that 15 years
ago you didn’t need,” Mr.
The March of Medicine
The FDA is a major gatekeeper to medical innovation. Its approval of
new drugs has stagnated, while approval of generics has shot up.
Novel drug approvals*
Generic drug approvals†
40
800
30
600
20
400
10
200
0
FY2000
0
’10
’17
2000
FY’10
’17
*Fiscal year ended Sept. 30.
†2000-09 are calendar year and the remainder are fiscal year ended Sept. 30.
THE WALL STREET JOURNAL.
Source: Food and Drug Administration
Gottlieb said in an interview.
That, he says, is appropriate if it means drugs are
more likely to be safe and effective. But he believes costs
can be cut without sacrificing
safety. For instance, he wants
the FDA to help drug developers narrow the information
they must submit for preclinical trials, reducing the capital needed at the riskiest
stage of development.
Mr. Gottlieb said developers can answer some questions, such as the most effective dose, more cheaply and
accurately using artificial intelligence and computer modeling rather than through
multiple clinical tests.
Aaron Kesselheim, a doctor specializing in drug research at Harvard Medical
School, noted the FDA had
been improving the efficiency of drug reviews before Mr. Gottlieb arrived.
Still, Michael Yee, an analyst
with Jefferies LLC., says Mr.
Gottlieb has signaled important shifts.
And while drug approvals
last fiscal year were in line
with recent trends, Mr. Yee
noted that under Mr. Gottlieb’s watch, two new cancer
cell therapies—Gilead Sciences Inc.’s Yescarta and Novartis AG’s Kymriah—were
both approved without the
usual large-scale phase 3
trial. Another company, Amicus Therapeutics, was invited to apply for approval
without a trial the FDA previously demanded.
S
ome experts worry that
speeding up the approval process may result in costly new drugs that
may not be as safe or effective. Last year, before Mr.
Gottlieb’s arrival, controversy
erupted when the FDA approved an expensive treatment for a rare form of muscular dystrophy against its
own experts’ recommendations, in part because of
pressure from patients’ parents aided by a consultant to
the drugmaker.
And even if the new drugs
are effective, their prices,
which reflect what patients
and insurers will pay, won’t
necessarily drop.
On the other hand, there is
progress on generics. Approvals sped up before Mr. Gottlieb, and he’s redoubled the
efforts; a record 763 generics
were approved last fiscal year,
which may be one reason prescription drug prices are rising more slowly this year.
At the FCC, Mr. Pai has
targeted the “digital divide,”
the gap in broadband access,
especially between rural areas and others. Mr. Pai
thinks the solution is “setting rules that maximize private investment in highspeed networks.”
Controversially, that includes a proposed rollback of
his predecessor’s imposition
of utility-like regulation so
that internet service providers (ISPs) adhere to “net
neutrality”—charging all
content providers the same
to access their networks.
Without those limitations, he
reckons ISPs will have more
incentive to expand capacity;
critics worry this will favor
rich, established content
providers over newcomers.
Mr. Pai’s philosophy also
animates lower-profile initiatives. In June, the FCC gave
OneWeb Ltd. permission to
use 720 cheap, low-orbit satellites to provide internet access to rural areas.
Whether such efforts are
enough to bolster overall economic growth remains to be
seen. They come as Mr.
Trump sought to slash federal
spending on health research
(Congress rejected the cuts).
Private companies in monopolistic positions may pad their
profits rather than undertake
risky new investments.
Still, Mr. Gottlieb’s and
Mr. Pai’s theory is that if you
lower the hurdles to innovation, you’ll get more of it. It
offers a potentially more
tangible payoff than fiddling
with the tax code.
U.S. WATCH
Bill Targets
Chinese Tech
Investments
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Bassano Jewelry New York, NY
WASHINGTON—Two influential Republican lawmakers
plan to unveil legislation as
soon as next week that would
ratchet up scrutiny of foreign
investment, taking aim in particular at Chinese technology
deals.
The identical bills from
Senate Majority Whip John
Cornyn (R., Texas) and Rep.
Robert Pittenger (R., N.C.), a
prominent anti-China hawk,
would broaden the authority
of the Committee on Foreign
Investment in the U.S. The
panel, known as CFIUS, is a
multiagency body that can advise the president to block foreign deals on national-security
grounds.
Though the U.S. generally
favors an open-investment
policy, certain Chinese investments have drawn heightened
scrutiny in recent months. Opponents say Chinese deals can
pose disproportionate risks to
national security because the
companies are directed and
subsidized by the government
of China, an economic and military rival.
The new legislation would
expand CFIUS’s remit to include vetting minority investments in Silicon Valley and
joint ventures involving American firms in China, according
to a draft of the bill that is circulating on Capitol Hill and
that was reviewed by The Wall
Street Journal.
The House and Senate
sponsors of the bill say they
want to ensure that the panel
is given broad and solid backing for such decisions. The
Trump administration is expected to support the measure, according to people involved in the bill.
One of the bill’s key provisions would broaden the types
of transactions CFIUS vets to
include joint ventures and
other arrangements that require U.S. technology companies to provide intellectual
property and support to a foreign person, according to a
copy of the bill seen by the
Journal.
CHRIS PIZZELLO/ASSOCIATED PRESS
BY KATE O’KEEFFE
HORROR SHOW: The late director George A. Romero, known for his 1968 film “Night of the Living
Dead,” was honored on the Hollywood Walk of Fame on Wednesday in Los Angeles.
ECONOMY
TEXAS
New Home Sales Up
Despite Hurricanes
GOP Leader Won’t
Seek Re-Election
U.S. new-home sales in September recorded the largest single-month increase since 1992, a
sign the market remains resilient
despite two major hurricanes
and a continuing inventory
shortage.
Purchases of newly built single-family homes—a narrow slice
of all U.S. home sales—increased
18.9% to a seasonally adjusted
annual rate of 667,000 in September from the previous
month, the Commerce Department said Wednesday. That put
new home sales at the highest
level since October 2007.
—Laura Kusisto
In a move sending shock
waves through Texas politics,
state House Speaker Joe
Straus, a powerful centrist Republican and champion of the
state’s business community,
said Wednesday he won’t seek
re-election.
The surprise decision by Mr.
Straus, seen as a moderate bulwark against the Tea Party wing
of the Texas GOP, comes after a
bitter legislative session during
which he was often at odds
CORRECTIONS AMPLIFICATIONS
Professional golfer Hideki
Matsuyama’s surname was
given incorrectly as Maruyama
in a World News article Tuesday about Japanese Prime
Minister Shinzo Abe’s economic plans after his election
victory.
Readers can alert The Wall Street
Journal to any errors in news articles
by emailing wsjcontact@wsj.com or
by calling 888-410-2667.
with a more socially conservative legislative bloc.
Mr. Straus blocked a push by
social conservatives to restrict
bathroom options for transgender people, and clashed with Republican state leaders over a
range of issues.
Mr. Straus, 58 years old, who
represents San Antonio and
whose term expires after December 2018, said in a statement that he felt it was time to
relinquish his position after serving five terms and that he
wanted the chance to speak
more freely about issues that
were important to him.
—Dan Frosch
THE WALL STREET JOURNAL
(USPS 664-880) (Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
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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.
Thursday, October 26, 2017 | A3
U.S. NEWS
BY ROBERT WALL
AND SUSAN CAREY
Airlines are telling U.S.bound passengers that they
may be subject to interviews
before boarding flights as
part of stepped-up screening
requirements Washington is
demanding because of terrorism concerns.
United Continental Holdings Inc. notified customers on
its website that the Department of Homeland Security
now requires additional security measures for all international flights to the U.S. It said
the measures may include enhanced screening with questioning of some or all travelers.
Electronic devices larger than
a standard smartphone also
could be subject to checks, the
airline said, as it advised passengers to arrive at airports at
least three hours before flights.
Emirates Airline, the world’s
biggest international carrier by
traffic, is among airlines alerting passengers that U.S.-bound
flights will be subject to closer
checks starting Thursday. “The
new directive requires passenger pre-screening interviews at
the check-in counter for originating passengers and at the
boarding gate for transfer and
transit passengers,” the Dubaibased airline said.
Homeland Security in June
first said it would roll out
tighter security checks on inbound international flights amid
concerns terrorists were trying
to bring down commercial airliners. The security measures
affect about 325,000 passengers
a day at 280 foreign airports
with direct flights to the U.S.
The new rules extend to
more behavioral vetting of passengers, steps that already
were in place at some European
airports but now are being applied to all foreign airports that
send planes directly to the U.S.
Passengers now could also face
questions about why they are
traveling or whom they have
met, a person familiar with the
new protocol said.
Witnesses Testify in Sgt. Bergdahl’s Sentencing Hearing
SARA D. DAVIS/GETTY IMAGES
Screening of
Air Passengers
Set to Tighten
MILITARY COMMAND: U.S. Army Col. Clint Baker, Sgt. Bowe Bergdahl’s command leader in Afghanistan, was escorted from the military
courthouse in Fort Bragg, N.C., after giving testimony for the prosecution during Sgt. Bergdahl’s sentencing hearing on Wednesday.
State Considers Changing Time Zones
BY JON KAMP
As Americans get ready to
turn the clocks back next
month, a Massachusetts commission is exploring whether
the state should spring ahead
one hour for good.
Winter darkness comes
early in New England, which
sits along the eastern edge of
the Eastern Time Zone, and
preserving more late-afternoon sunshine could yield
some health and economic
benefits, according to a draft
report from a Massachusetts
commission studying the issue.
Although the odds of a
change appear long, Massachusetts “could make a datadriven case for moving to the
Atlantic Time Zone year-
round,” the 11-member commission said in a draft report
issued last month. Another
draft will be put to a final
panel vote Nov. 1, and if that
vote is positive, the report will
1966
The year Congress set the dates
for daylight-saving time
be sent to lawmakers to inform potential bills, said Democratic state Sen. Eileen Donoghue, who chairs the panel.
Federal law only allows
states to opt out of daylight-
saving time. They aren’t allowed to adopt it all year. But
Massachusetts could get there
by shifting ahead one hour
into Atlantic Time, which includes eastern Canadian provinces and Puerto Rico.
There is a major caveat for
the effort: The report recommends against Massachusetts
making a unilateral move without most of New England.
Panel member Paul Frost, a
Republican state representative, believes New York would
also have to change zones.
Daylight-saving time was
historically viewed as a way to
cut energy use by replacing
electric lighting with sunlight,
and Congress set the dates in
1966. But switching the clocks
can have negative conse-
quences: Losing an hour each
spring has been associated
with traffic deaths, workplace
injuries and heart attacks, the
Massachusetts draft said.
“Why do we keep doing this
to ourselves?” said Maine
Democratic state Rep. Donna
Bailey, who sponsored a failed
bill to shift to Atlantic Time.
The sun sets over parts of her
state before 4:00 p.m. after
clocks turn back.
Lawmakers around the U.S.
frequently pitch bills to do
away with twice-yearly time
changes. But the current system has decades of inertia that
has proven hard to stop.
“The practical matter is this
is something that has been in
place and does not change easily,” Ms. Donoghue said.
Teen Migrant Has Abortion After Ruling
BY BRENT KENDALL
WASHINGTON—An undocumented teenager in U.S. custody obtained an abortion
Wednesday morning following
a legal confrontation between
the Trump administration and
abortion-rights advocates.
The procedure came a day
after a divided appeals court
ruled that administration officials must allow the 17-yearold to leave a federally funded
Texas shelter where she was
being held so that she could
go to an abortion clinic.
The American Civil Liberties Union, which represented
the teen, confirmed that the
abortion took place, less than
24 hours after the court ruling. The ACLU had argued the
Trump administration was violating Supreme Court precedent guaranteeing a woman’s
right to choose an abortion
without undue burden from
the government.
The teen’s lawyers had said
the government wouldn’t need
to pay for the procedure or
transport the girl. The teen
was accompanied to the clinic
by a court-appointed guardian
and someone from the shelter
and returned to the shelter after the procedure, according
to her legal team.
Officials at the Department
of Health and Human Services
resisted the teen’s abortion request, citing a new policy of
refusing to facilitate the procedure. The Justice Depart-
ment contended that the government had a legitimate
interest in promoting childbirth and said the administration wasn’t placing a burden
on the teen because she was
free to leave the U.S. and do
what she wished.
The Justice Department declined to comment. The Office
of Refugee Resettlement,
which is part of HHS and
houses undocumented teens,
didn’t respond to requests for
comment.
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THE WALL STREET JOURNAL.
U.S. NEWS
CBO Says Health Plan Would Cut Deficit
BY STEPHANIE ARMOUR
AND KRISTINA PETERSON
A bipartisan Senate health
bill would reduce the deficit by
almost $4 billion over the next
decade without significantly affecting the number of people
who have coverage, the Congressional Budget Office found
in a report released Wednesday.
Sens. Lamar Alexander (R.,
Tenn.) and Patty Murray (D.,
Wash.), the bill’s co-sponsors,
said the findings strongly bolster the case for their legislation. But a standoff between the
White House, which wants more
provisions to undo the Affordable Care Act, and Democrats,
who reject such provisions, has
left the measure stalled for now,
with no clear path forward.
The Alexander-Murray bill
would restore the “cost-sharing” subsidies, federal money
that helps insurers offset discounts they provide for lowincome consumers. It would
also give states more say in
implementing the ACA and ex-
pand access to lower-cost,
less-robust health plans.
But the impasse between
Senate Democrats, who unanimously support the bill, and
President Donald Trump, who
signaled his support before
declaring his opposition, is
showing no signs of resolution. Many lawmakers now believe negotiations will likely be
pushed to the end of the year.
The CBO assumed in evaluating the Alexander-Murray
bill that it wouldn’t be enacted
until after the ACA’s annual
open-enrollment
period
launches Nov. 1. That means
the bill would have no effect
on premiums next year.
“This nonpartisan analysis
shows our bill provides savings and ensures that funding
for two years of cost-sharing
payment will benefit taxpayers
and low-income Americans,
not insurance companies,” Mr.
Alexander and Ms. Murray
said Wednesday.
Many of the bill’s GOP critics describe it as a bailout for
Judge Backs White
House on Subsidies
A California federal judge on
Wednesday said he wouldn’t
force the Trump administration to
continue paying insurers for providing health-coverage discounts
to lower-income consumers, a
blow to Democrats who fear the
Affordable Care Act’s exchanges
will crater without the funding.
U.S. District Judge Vince
Chhabria in San Francisco said
the case was “close and complicated” but that, at the current
early stage, the administration
had a stronger legal position
than the Democratic-led states
that filed the lawsuit seeking to
keep the payments going.
The government payments
reimbursed insurers for providing
subsidies to some low-income
consumers for out-of-pocket
costs, including deductibles and
copays. Insurers are required by
the ACA to provide these costsharing subsidies, and about
seven million people who buy
health plans on the ACA’s insurance exchanges get them.
President Donald Trump
this month said he would end
the subsidies as of Oct. 18 because Congress never appropriated money for the program.
The payments are estimated at
$7 billion in 2017.
The move was a turnabout
from the Obama administration,
which had argued that the costsharing payments to insurers
were lawful. House Republicans
sued over that interpretation in
2014 and won a court decision
last year when a Washington,
D.C., trial judge ruled the payments to insurers weren’t allowed. That case is pending at
a Washington appeals court.
After Mr. Trump said he
would discontinue the payments,
18 Democratic-led states and the
District of Columbia filed suit in
California. They argued that the
president’s move violated government administrative procedures
as well as the Constitution.
—Stephanie Armour
and Kristina Peterson
insurers, but Sens. Alexander
and Murray say the payments
only go to help consumers.
The CBO also found that
premiums for some people
would drop because the legislation would expand access to
health plans that have fewer
benefits and lower costs.
The bill would reduce the
deficit, the CBO concluded, in
part because it would allow
wider access to health plans
that cost less and have fewer
benefits. That is likely to attract younger and healthier
customers, which could reduce
premiums and reduce the federal cost for the subsidies.
Many conservative lawmakers have criticized the biparti-
Democrats’ Senate Odds Still Tough in 2018
BY KRISTINA PETERSON
AND JANET HOOK
Democrats’ path to retaking
the Senate next year remains
challenging, despite the decision of two GOP incumbents to
retire, but the rapidly changing landscape is scrambling
both parties’ calculations.
The recent announcements
from GOP Sens. Jeff Flake of
Arizona and Bob Corker of
Tennessee that they won’t run
for re-election quickly transformed both races, intensifying
competition in the GOP primary for the open seats and
upending expectations for who
would be squaring off in the
general elections. But the de-
partures of Messrs. Flake and
Corker don’t make either state
an easy pick-up for Democrats.
For Democrats hoping to
take back the Senate majority,
“there’s a path, it’s just far
from a clear path right now,”
said Nathan Gonzales, editor
of the nonpartisan Inside Elections newsletter.
Republicans currently hold
a 52-48 majority, so Democrats
would have to pick up a net of
three seats next year to regain
control of the Senate.
That means members of the
Senate Democratic caucus
would have to win re-election
in the 25 seats they are defending next year, including 10
in states won by President
Donald Trump last fall. Republicans, meanwhile, are defending just eight seats.
Democrats have hopes of
taking back Nevada, where
GOP Sen. Dean Heller is up for
re-election next year in a state
won by Democratic presidential nominee Hillary Clinton, as
well as Arizona, with its growing Hispanic population.
But both GOP and nonpartisan analysts said Mr. Flake’s
decision not to run could help
Republicans retain that seat.
His move opens the door for
other Republicans to enter the
primary to take on current
candidate Kelli Ward, a former
state senator who challenged
Sen. John McCain last year.
Allies of Senate Majority
Leader Mitch McConnell (R.,
Ky.) have said they plan to recruit GOP candidates who they
believe will have a better shot
than the conservative Ms.
Ward at defeating the likely
Democrat in a tight general
election, Rep. Kyrsten Sinema,
a young centrist. She is widely
considered one of the party’s
top recruits next year.
But Democrats said groups
working with Mr. McConnell
might not be able to persuade
GOP voters to coalesce around
a Republican in the primary. In
Alabama last month, Republicans elected former state Supreme Court Judge Roy Moore
as the GOP nominee in a runoff
primary election over incumbent Sen. Luther Strange, who
was backed by both Messrs.
McConnell and Trump.
Even if Democrats were to
win Arizona and Nevada, they
would need to capture at least
one more seat held by Republicans. That has cast the spotlight on Tennessee, where Rep.
Marsha Blackburn has entered
the GOP race, as has former
Rep. Stephen Fincher.
“It’s still a steep climb, but
if former two-term Democratic
Gov. Phil Bredesen runs in
Tennessee, as he may well do,
Republicans could plausibly
lose their majority,” Charlie
Cook, a nonpartisan political
analyst, wrote Tuesday.
TAXES
WASHINGTON
WIRE
CENTRAL BANK
Trump Mulls Keeping
Yellen as Fed Chief
President Donald Trump said
Wednesday he is still considering offering Janet Yellen another
term as Federal Reserve chairwoman when her term expires
in early February.
“You like to make your own
mark, which is maybe one of the
things she’s got a little bit
against her,” Mr. Trump said in
an interview on Fox Business
Network.
But the GOP president, who
interviewed Ms. Yellen about the
job in the Oval Office last week,
said he thinks the central bank
chief is “terrific” and that the
two “had a great talk.”
“And we’re obviously doing
very well together; you look at
the markets,” he said.
—Kate Davidson
TRADE
Union Leaders Echo
President on Nafta
ALEX WONG/GETTY IMAGES
Continued from Page One
makers were considering
changes to 401(k) plans, despite
President
Donald
Trump’s insistence—reiterated
Wednesday—that the popular
break for retirement savings
should be untouched. The
most talked-about idea: reducing the amounts that individuals and households can contribute to these plans without
being taxed.
Republicans also discussed
state and local tax deductions,
searching for an approach that
would satisfy at least some
lawmakers from high-tax states
such as New York and New
Jersey who oppose the party’s
plan to repeal the deduction.
One option is replacing the
deduction with a tax credit
worth between 8% and 20% of
a household’s property tax
payments, with caps for married couples that start somewhere between income of
$250,000 and $400,000, said
Rep. Tom Reed (R., N.Y.). Instead of generating $1.3 trillion over a decade to offset
lower tax rates, as repeal of
the state and local deduction
would do, the idea would yield
between $600 billion and $1
trillion, he said. Some versions
of the credit concept also include mortgage interest.
“We’re going to have to nail
this down before we get to
next week with rolling out the
proposal,” said Mr. Reed, the
lone New York Republican on
the tax-writing committee.
The House is slated to vote
Thursday on the fiscal 2018
budget, a procedural step that
makes it possible for a tax bill
to speed through Congress
with only Republican votes, if
no Democrats ultimately back
the plan. Some lawmakers
from high-tax states plan to
oppose the budget, but in a
sign GOP leaders expect they
have enough votes, they canceled a late Wednesday meeting aimed at building support
from lawmakers from high-tax
states.
After the budget vote,
House Republicans plan to release a detailed tax bill on Nov.
1 that would fill in the blanks
they have left so far, including
income cutoffs for tax brackets, the size of the child tax
credit, curbs on the deduction
for business interest and many
narrower provisions. That will
dial up political pressure, as
interest groups weigh in to defend or change pieces of the
overhaul they view as most
san plan and have urged more
aggressive measures to peel
back the ACA.
Rep. Kevin Brady (R.,
Texas), who leads the influential House Ways and Means
Committee, joined other GOP
lawmakers this week in proposing legislation that would
continue the payments to insurers, like the AlexanderMurray plan, but would do
more to roll back the ACA.
It would end the ACA requirement that most people
have insurance or pay a fine,
for example, and include other
measures that the White House
has said would have to be part
of any bipartisan plan to get
administration support. Such
measures, which are opposed
by virtually all Democrats, were
part of GOP repeal efforts that
failed to pass earlier this year.
“It’s important that we lower
premiums for those Americans
trapped in Obamacare today,
and I think it makes good fiscal
sense to do that as well,” Mr.
Brady said Wednesday.
President Donald Trump, left, and House Ways and Means Committee Chairman Kevin Brady (R., Texas) are negotiating tax-plan details.
critical to them.
“There’s thousands of those
‘one provisions’ that are AllAmerican and apple pie and
should be saved,” said Tim
Phillips, president of Americans for Prosperity, a conservative group that favors eliminating narrow tax preferences.
Mr. Trump seemed to surprise lawmakers Monday by
ruling out 401(k) changes that
were discussed in news stories
over the weekend. The idea
would impose a lower cap on
pretax contributions and push
people into so-called Rothstyle accounts that are funded
with posttax dollars and available for tax-free withdrawals
in retirement.
On Wednesday, Mr. Trump
said there might be negotiations but also that he wanted
to shut down negotiations
about 401(k) plans. “There are
certain elements of deals that
you don’t want to negotiate
with,” he told reporters.
“Kevin Brady is fantastic but
he knows how important
401(k)s are.”
Mr. Brady said Wednesday
that Republicans were “exploring a number of ideas” in the
arena of 401(k) plans and
added he was working with
the White House on the issue.
“We think in tax reform we
can create incentives for
Americans to save more and
save sooner,” Mr. Brady said at
Broad Impact
A potential annual $2,400 limit on tax-deductible 401(k)
contributions would affect a large number of retirement savers.
Percentage of workers contributing to 401(k)s
who put in more than $2,400 annually
Average employee contribution
By salary
$3,203
$10,000-$24,999
38%
$25,000-$49,999
32
$50,000-$74,999
60
4,197
$75,000-$99,999
76
6,622
$100,000 or more 87
11,112
By age
2,710
Average employee contribution
$3,169
25-34
43%
35-44
56
5,054
45-54
62
6,488
55-64
64
7,287
Source: Employee Benefit Research Institute
a breakfast sponsored by the
Christian Science Monitor.
“The president’s opinion
matters on this. He’s the only
person in America that can sign
a bill into law and the president will get much of what he
wants,” said Sen. Pat Toomey
(R., Pa.), a Finance Committee
member. “But we are a coequal
branch of [government] and
we’re going to write it.”
Until this week administration officials had declared just
two mandatory changes the
president wants in a tax bill: a
THE WALL STREET JOURNAL.
20% corporate tax rate and a
middle-class tax cut.
Tax committee members insist that crucial decisions
about dozens of provisions haven’t been made yet. But time
is running short. They have a
goal of passing the bill
through the House by Thanksgiving and getting it on Mr.
Trump’s desk by year’s end.
Democrats and some Republicans say they oppose any
changes to 401(k) plans.
“We are going to take this
to the mat,” said Sen. Ron
Wyden (D., Ore.).
Lobbyists and others in the
retirement and financial-services industries who have spoken to congressional staff and
committee members say lawmakers are looking at proposals that would allow 401(k)
participants to contribute significantly less before taxes
than the $18,000 a year that is
currently allowed in a traditional tax-deferred 401(k). An
often mentioned amount is
$2,400 a year.
Currently, employees under
age 50 can save up to $18,000
a year in a 401(k) before taxes,
while those 50 or older can set
aside up to $24,000. The 401(k)
limits are scheduled to rise to
$18,500 and $24,500 in 2018.
Of workers contributing to
401(k)-type plans whose annual salaries are between
$10,000 and $24,999, 38% currently save more than $2,400,
according to Employee Benefit
Research Institute, which drew
on data from millions of administrative records from
401(k) record-keepers. That
share falls to 32% for those
earning between $25,000 and
$49,999. More than half of employees in thresholds above
$50,000 would be affected by
a $2,400 cutoff, with an 87%
share for those earning more
than $100,000.
—Kristina Peterson
contributed to this article.
Labor unions gathering in St.
Louis for the annual meeting of
the AFL-CIO find themselves
aligned with President Donald
Trump on key aspects of the
hot-button trade issue of the
day: renegotiating the North
American Free Trade Agreement.
Labor leaders have echoed
the White House in saying the
trade deal among the U.S., Canada and Mexico has been a job
killer for more than two decades—but that terminating the
pact isn’t their first choice.
The White House and labor
unions agree on several administration proposals for trying to
revisit the deal. Those include a
requirement that products sold
in the U.S. under the agreement
have at least minimum levels of
U.S.-produced content, a demand
that investor arbitration panels
be scaled back and a rule that
the trade agreement be revisited
every five years. The administration and unions have both indicated they would rather kill the
pact than continue the status
quo.
“There are some good things
that have been put forth already,” AFL-CIO President Richard Trumka said of the administration’s proposals. “We’re
hopeful, but we’re not overly
confident.… No deal is better
than a bad deal.”
—Eric Morath
HEALTH
FDA Chief Discusses
Fighting Drug Abuse
Food and Drug Administration
Commissioner Scott Gottlieb proposed Wednesday that his agency
take a more active role combating
opioid drug abuse in the U.S., including urging greater use of addiction-treatment medicines.
Such a role for the FDA,
which could include convening
meetings to discuss the evidence
of treatment benefits from drugs
like naltrexone and buprenorphine, is a response to the seriousness of the current opioid-addiction crisis, Dr. Gottlieb said.
“We’ll need to touch clinical
practice in ways that may make
certain parties uncomfortable,”
he told members of the House
Committee on Energy and Commerce.
—Thomas M. Burton
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THE WALL STREET JOURNAL.
Thursday, October 26, 2017 | A5
* * * * *
U.S. NEWS
Trump-Linked Firm Contacted WikiLeaks
BY REBECCA BALLHAUS
BY REBECCA BALLHAUS
Hillary Clinton’s presidential
campaign and the Democratic
National Committee were
among a number of political
groups that paid a firm for research that led to a dossier of
unverified allegations about
President Donald Trump’s activities and connections in Russia,
according to a person familiar
with the matter.
Marc Elias, a partner at law
firm Perkins Coie, who was paid
by both the Clinton campaign
and the DNC, hired the research
firm, Fusion GPS, in April 2016
and ended the contract before
the election, the person said.
On Wednesday, Mr. Trump
called the dossier “fake” and
criticized the Clinton campaign
for not previously disclosing its
role. “It’s a disgrace,” he said at
the White House.
Fusion GPS had been conducting research on Mr. Trump
before then, funded by at least
one Republican donor, according
to a letter from Perkins Coie to a
Fusion lawyer dated Tuesday
and filed in court the same day.
In March 2016, as the Republican presidential primary was
ending, Fusion GPS approached
Perkins Coie about continuing
the research. The firm hired Fusion GPS a month later to “perform a variety of research services,” the letter said.
The letter describing the
Clinton campaign and the DNC’s
role was filed in federal court in
Washington, D.C., by Fusion GPS,
which is fighting a subpoena of
its banking records from congressional investigators seeking
the identities of those who
funded the research. Fusion GPS
was founded in 2011 by former
Wall Street Journal reporters. A
Fusion representative didn’t respond to a request for comment.
The chief executive of a
data-analytics
firm
that
worked for President Donald
Trump’s campaign reached out
to WikiLeaks founder Julian
Assange to offer help organizing the Hillary Clinton-related
emails the website was releasing, according to a person familiar with the effort.
The outreach by the CEO of
the firm, which is partly
owned by a major Trump donor, came as Mr. Trump was
publicly cheering the leaks of
his Democratic rival’s emails
and some supporters were
seeking to unearth further
messages.
In an email sent in late July
RULES
Continued from Page One
internet. That has led to the
emergence of a handful of “super groups” like Sinclair Broadcast Group, which today reaches
45.6% of television households,
according to Kagan, a media research group within S&P Global
Market Intelligence.
Since President Donald
Trump tapped Mr. Pai as FCC
commissioner, the pace of consolidation has accelerated. One
of Mr. Pai’s first moves as chairman was to change how station
owners count certain television
stations toward their national
ownership caps. In the wake of
that change, Sinclair announced
the purchase of many more television stations, including those
owned by major station group
Tribune Media. That deal is currently being reviewed by the
FCC.
Relaxing regulations on local
TV station ownership likely
would spark a “bonanza” of
dealmaking among station owners, according to station broker
Larry Patrick, particularly
among the independent station
groups that don’t share ownership with broadcast networks
like ABC or Fox.
For instance, the proposed
rules would make it possible for
2016 and recently reviewed by
the person, Cambridge Analytica CEO Alexander Nix told
other employees at the firm
and Rebekah Mercer, a top Republican donor, that he had recently reached out to Mr. Assange to offer help better
indexing
the
messages
WikiLeaks was releasing to
make them more easily
searchable. Those emails included a trove of messages
stolen from Mrs. Clinton’s
campaign chairman John Podesta’s account and from the
Democratic National Committee.
In his email, Mr. Nix said he
had not heard from Mr. Assange, the person said.
On Wednesday, Mr. Assange
said he had rejected an approach by Mr. Nix, though he
didn’t say what had been offered.
A spokesman for Cambridge
Analytica didn’t respond to a
request for comment. Mr. Assange didn’t respond to a request for further detail.
Mr. Nix’s email followed the
Republican National Convention in July 2016, after which
WikiLeaks began releasing its
collection of Clinton-related
emails. By Election Day, the
site had released more than
50,000 emails stolen from Mr.
Podesta and the DNC.
Mr. Trump has denied any
collusion by him or his campaign with Russia and has
called investigations into pos-
Big Picture
Rapid consolidation in the local television industry has led to the rise of
‘‘super groups’’ of TV stations that reach wide swaths of the country.
Local broadcast station
M&A deal volume
$6 billion
TV
U.S. TV household coverage
by company*
Radio
5
4
Sinclair
45.6%
Tegna
3
2
27.2%
NexStar
25.7%
1
Hearst
0
2015
’16
13.3%
’17
*Household reach after the application of the ‘‘UHF discount’’ that was reinstated in April.
Source: Kagan, a media research group within
S&P Global Market Intelligence
THE WALL STREET JOURNAL.
a single company to more completely dominate a local television market by owning two of
its top four stations if the FCC
decides it is in the public interest—for example, if a financially
strong station proposed to buy
a financially weak fourth-ranked
station.
In an interview, Mr. Pai said
the changes overall will promote
the economic health of local media, including newsgathering
operations, by removing what
he said are arbitrary regulatory
barriers.
“I think the biggest impact is
going to be simply that the FCC
will not be pre-emptively dictating market structure in every
market in the U.S.,” Mr. Pai said.
“Overall I think the effect is going to be more local newsgathering…and more news for consumers.”
Station groups are eager for
consolidation because it would
allow them to save money on
overlapping functions while giving them more clout in negotiations with advertisers and payTV providers.
While the relaxed rules may
allow some station groups to
get bigger, much of the dealmaking is likely to be in “swaps”
The Face
of Change
sible collusion during the election a “witch hunt.” Moscow
has denied meddling in the
election.
Cambridge Analytica began
the 2016 campaign working
for presidential candidate Sen.
Ted Cruz (R., Texas), according to campaign finance records. The Trump campaign
began paying the company in
July 2016.
Cambridge Analytica offers
analysis related to the personalities and values of voters.
The firm is partly owned by
billionaire Robert Mercer, Rebekah Mercer’s father, whose
family began backing Mr.
Trump in the election around
the same time the Trump campaign hired the company.
Julian Assange
of stations between groups that
would give each of them more
control of a market. Stations
owned and operated by broadcast networks like NBC and CBS
are less likely to be affected.
Mr. Patrick expects major independent TV station owners
like Tegna Inc., Hearst Corp.,
Sinclair and Nexstar Media
Group, which own local affiliates
of broadcast networks, would all
want to look at bulking up in
certain markets, if Mr. Pai’s proposed changes are approved.
Hearst declined to comment.
Sinclair didn’t immediately respond to a request for comment. A Tegna spokeswoman
said the company is “pursuing
an aggressive growth strategy.”
A Nexstar spokesman said the
company isn’t looking to do another large deal, but rather
“surgical and select tuck-in
deals.”
For newspapers, relaxing local-ownership rules will have
come too late to afford much
economic benefit, experts said.
Between 2000 and 2015, newspaper advertising revenue fell
from about $60 billion to below
$20 billion, according to the
Newspaper Association of
America, as advertisers shifted
their money to online companies like Google and Facebook.
The plan is sure to draw criticism from Democrats and others who worry that it will lead
to more concentration of power,
less diversity and a loss of locally generated content. The
plan also is likely to face legal
challenges.
Democratic FCC Commissioner Mignon Clyburn said in
prepared testimony for Wednesday’s hearing that the expected
changes likely would “roll back
the best elements of our media
ownership rules.” She said the
“already consolidated broadcast
media market will become even
more so, offering little to no discernible benefit for consumers.”
The FCC plans to vote on the
new rules at its Nov. 16 meeting
and agency officials said they
would take effect soon after
that.
One proposed change would
eliminate the rule that generally
prohibits a single individual or
company from possessing a
daily newspaper and a radio or
TV station in the same market.
A related change would eliminate a similar rule regarding
cross-ownership of radio and TV
stations.
Other changes would make it
easier for a company to own
two TV stations in a market. For
example, Mr. Pai’s plan would
eliminate a rule known as the
“eight-voices test” that says an
owner can buy a second station
in a market only if there would
be eight independently owned
stations following the purchase.
DOMINIC LIPINSKI/ZUMA PRESS
Democrats
Law Firm
Funded
Trump
Dossier
Denise Klein
Provider Advocate
Nashville, TN
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A6 | Thursday, October 26, 2017
THE WALL STREET JOURNAL.
* ***
WORLD NEWS
China’s Xi Gains a Longer Lease on Power
Party unveils a new
top leadership without
a likely successor to
the president
BEIJING—The future of 1.4
billion people, the world’s second-largest economy and an
emerging military juggernaut
now lies largely in the hands of
just one man: China’s President
Xi Jinping.
In unveiling a new top leadership lineup without a potential successor to Mr. Xi on
Wednesday, the Communist
Party edged closer to resurrecting one-man rule, four decades
after the death of Chairman
Mao.
The parade of the seven-man
Politburo Standing Committee
onto a red-carpeted podium in
Beijing’s Great Hall of the People was the climax of a twice-adecade process that placed Mr.
Xi on a par with Mao in the
party constitution and positioned him as pre-eminent
leader even beyond his second
five-year term.
Concentrating such power in
Mr. Xi—who can now make policy and personnel choices virtually uncontested—draws to an
emphatic end an era of collective leadership. It also represents a historic gamble.
Mr. Xi is calculating that
strongman rule will make it easier to add China to the ranks of
rich, global powers and to project Chinese power globally. An
early test of the latter comes in
just a few weeks, when U.S.
President Donald Trump is due
QILAI SHEN/BLOOMBERG NEWS
BY CHUN HAN WONG
AND JEREMY PAGE
WHO’S WITH XI: President Xi Jinping, center, strode by other members of the Communist Party’s new Politburo Standing Committee
in Beijing on Wednesday. Pictured from left, Han Zheng, Wang Huning, Li Zhanshu, Li Keqiang, Wang Yang and Zhao Leji.
to visit Beijing. In a tweet on
Wednesday, Mr. Trump said he
called Mr. Xi and congratulated
him on his elevation.
The risk is a political culture
that rewards loyalty over initiative, in which it is harder for the
leadership to astutely address
complex challenges.
“The biggest drawback of
this power structure is that no
one will dare to tell him the
truth: There could be an emperor’s-new-clothes situation,”
said Zhang Lifan, an independent historian and political
commentator. “If there is a crisis in the future, he might not
get the necessary information.”
That would be dangerous,
given China’s critical role in the
standoff over North Korea’s nuclear and missile programs and
its outsize influence on the
global economy and world financial markets.
Mr. Xi, who is 64 years old,
has offered few details of how
he will exercise his enormous
powers.
The leadership revamp effectively endorsed the revival of
autocratic rule in a country
where emperors wielded absolute power for centuries, and
where Mao’s brutal dictatorship
caused tens of millions of
deaths through famine and the
turbulence of political purges.
After Mao’s death in 1976,
Deng Xiaoping began to liberalize the economy and develop
norms for retirement and
power-sharing, which evolved
further after the Cold War’s end
to avoid the gerontocracy and
bureaucratic sloth that contributed to the Soviet Union’s collapse. By the time Mr. Xi took
power in 2012, the party had
been thrown into disarray by a
scandal.
Mr. Xi became convinced
that what led to the Soviet
Union’s dissolution was a lack of
strong party leadership. “In the
end, nobody was a real man, nobody came out to resist,” he
said in an internal speech
shortly after taking power, people who saw an official summary of his remarks said.
Most striking in the new
leadership slate unveiled on
Wednesday was the absence of
any member of the next generation of leaders, now in their 50s.
That was the strongest indication yet that Mr. Xi plans to rule
for the long haul.
Under recent practice at the
twice-a-decade congress, the
party has retired leaders over
67 and elevated to the Standing
Committee at least one potential successor for the top post
five years before he would take
power, to ensure a smooth transition. By those norms, none of
the new Standing Committee
members are young enough to
succeed Mr. Xi and rule for two
five-year terms.
“Mao Zedong and Deng Xiaoping each needed decades to
achieve their accomplishments,” said Ding Xueliang, a
China politics expert at Hong
Kong University of Science and
Technology. “Xi Jinping still
needs to consolidate his gains
and needs more time to achieve
his goals.”
Premier Li Keqiang, whose
powers have been severely curtailed, remained on the top
body. Three of the five new
members have close ties to Mr.
Xi. Mr. Xi also now has trusted
lieutenants in the new Politburo, the party’s top 25 leaders,
and the broader 376-member
Central Committee.
Mr. Xi has declared the start
of a new era defined by strong
leadership and more balanced
development as a way to preserve party rule far into the 21st
century.
It will be a big task to turn
these broad goals into specific
guidelines that China’s bureaucracy will follow.
“Xi needs local leaders to implement his policies, and he
thinks that corruption crackdowns are the key to implementation, in a theory of ‘if only
they would do what I say.’ ” said
Ryan Manuel, an expert on Chinese politics at the University of
Hong Kong. “It isn’t that simple.”
Pressed
Japan’s Rising Foreign Workforce Hits Wages U.S.
On Tactical
BY YOKO KUBOTA
Labor from Abroad
KEITH BEDFORD FOR THE WALL STREET JOURNAL
TOKYO—Facing the tightest
labor market in Japan in 43
years, Gatten Sushi recently
hired two Chinese kitchen
workers and a Filipino waitress who calls out “Welcome”
to customers, each for about
$10 an hour.
“I see economic merits
working here now and perhaps
even more so in the future,”
said Shen Xigang, one of the
Chinese workers, a university
student who wants to learn
the sushi trade and stay in
Japan after graduation.
For the first time in the
postwar era, Japan has opened
itself to a significant though
still small cohort of low-wage
foreign labor. And that presents a clash between Japan’s
short- and long-term goals—
trying to raise wages to help
spur spending and growth
while expanding the workforce.
Business leaders and economists in Japan have called for
more immigration, saying it is
the only way for a nation with
a fast-aging and declining native population to add new
workers. Yet such people are
helping keep wages down,
contradicting Prime Minister
Shinzo Abe’s priority of lifting
wages and productivity.
“If labor costs were rising,
that would put pressure on
companies to boost productiv-
Japan has fewer foreign workers
than other developed nations...
...but the number
is growing...
...which is one reason why
wages aren't rising.
Percentage of foreigners in
workforce, 2016*
Number of foreign workers
in Japan
Change from a year earlier in
Japan’s real wages
U.S.
1.00 million
16.9%
U.K.
11.0%
GERMANY
10.7%
JAPAN
BY FELICIA SCHWARTZ
2%
0.75
has repeatedly said he doesn’t
want large numbers of immigrants in low-paying jobs coming to Japan for the long term.
That hasn’t stopped firms
from doing whatever they can
to get workers from other Asian
nations. Convenience store
chain Family Mart Uny Holdings
Co., for instance, holds recruiting sessions at language schools
targeting foreign students.
Mr. Hoshino says Japan will
have to make up its mind
whether the foreign workers,
on the whole, are worth having. “On the surface, Japan is
saying it won’t accept immigrants, but in reality it’s gradually become reliant on foreigners,” he says.
WASHINGTON—The head of
South Korea’s conservative opposition party is urging the
Trump administration to redeploy tactical nuclear weapons
to South Korea to help counter
threats from North Korea and
change the dynamics on the
peninsula.
Hong Joon-pyo, head of the
Liberty Korea party, is making
his pitch for weapons in
meetings in Washington with
senior state department officials and lawmakers from
both parties.
Mr. Hong met this week
with officials including Undersecretary of State for Political
Affairs Tom Shannon and Deputy Assistant Secretary of
State for Korea and Japan Joseph Yun.
He acknowledged that the
South Korean government remains opposed to his plan and
that the U.S. favors diplomacy,
but said he doesn’t see another way to resolve the tensions. A recent poll by Gallup
Korea found 60% of South Koreans surveyed said they believed the country should arm
itself with nuclear weapons.
no hope the market would ever
come back.” It did, and brought
more glory days.
Computers began changing
the milieu. “Open outcry” trading ended around 1994 after
traders began having to sit at
their desks to input trades into
computer terminals, although
brokers still could mingle.
It was in the mid-1990s,
when brokers were authorized
to use off-floor computers to
trade from their offices in addition to the trading floor, that
Mr. Tung started seeing the
floor lose its luster, he said.
Mr. Tung assumed there
would always be a place for
floor trading in some shape,
even after the exchange proposed closing the floor in 2006.
“We fought them,” he said.
The floor’s role continued to
dwindle. In 2000, one-fourth of
Hong Kong trades were done on
the trading floor, according to
HKEX. By 2014, the last year it
broke out figures, it was 0.2%.
In recent years, Mr. Tung
spent less time on the floor, instead going to an office near the
exchange because “there weren’t
a lot of people anymore.”
He planned to retire at 90,
but health reasons prompted
him to sell his seat this year.
In a letter to Hong Kong’s
government in August, about 30
remaining floor traders complained about the floor’s closure—to no effect. The exchange
said it would turn the trading
floor into an exhibition hall.
Old hands are already reliving the glory days, including
Mr. Cheung, whose company
organized a “red jackets” party
last month for brokers. “A lot
of traders are eager to get together,” he said, “to revisit our
glorious achievements.”
Every week day before the
market opens, Mr. Tung does
an hour of kung fu. He still
trades his own funds through
another broker. The Hang Seng
is up 29% this year, near a 10year high, which makes him
nervous. He has raised cash to
prepare for a pullback.
“I still will watch the market
every day,” he said. “Some
things never change.”
—Yifan Xie and Chester Yung
contributed to this article.
0
0.50
–2
0.25
0
1.7%
Nuclear
Weapons
–4
2012
’13
’14
’15
’16
2012 ’13
’14
’15
’16
’17
A Filipino recently waited tables
at a sushi restaurant in Tokyo.
*U.S. figure includes foreign-born citizens Sources: Ministry of Health, Labor and Welfare; Ministry of Internal Affairs and
Communications (Japan); Bureau of Labor Statistics (U.S.); Office for National Statistics (U.K.);
THE WALL STREET JOURNAL.
Federal Statistical Office (Germany)
ity,” said Takuya Hoshino, an
economist at Dai-ichi Research
Institute. “But the rise of foreign workers is actually placing a halt on such moves.”
Japan added 400,000 foreign
workers in the four years
through 2016, surpassing one
million for the first time, or
nearly 2% of the workforce, labor ministry data show. That is
low compared with the U.S.’s
17% of foreign-born workers but
enough to sway the labor market in urban centers like Tokyo.
Without the foreign help,
“we would have to close some
of our restaurants,” said Yoshiteru Fukui, the hiring manager
at RDC, which runs sushi
chains including Gatten Sushi.
Foreign workers help bolster Japan’s workforce as its
population aged 15 to 64 declines at more than 600,000
people a year. But boosting
wages also is vital after 15
years of deflation in Japan that
has damped economic activity.
Mr. Abe has had some success with breaking out of the
deflationary cycle and restoring steady growth. The economy has expanded for six
straight quarters, the longest
streak in more than a decade,
and the unemployment rate is
just 2.8%, the lowest level in
23 years. Such relative success
helped propel Mr. Abe’s ruling
coalition to victory in parliamentary elections on Sunday.
But inflation and wage
growth have been slow to follow. Core inflation stood at
0.7% in August, and real wages
fell 0.1% that month over a
year earlier.
Minimum wage in Japan,
too low to attract many nativeborn workers, is still generous
for many other Asians. In 2015,
Japan’s minimum wage was 21
times higher than that of Vietnam, 12 times higher than in
Nepal, and triple that of China,
Dai-Ichi data show.
Many foreign workers come
as language students, allowed
to work for up to 28 hours a
week. But most foreign workers
can’t stay permanently owing
to immigration rules. Mr. Abe
TRADER
Continued from Page One
lent hall. “To be a true finance
center, we should still have a
place where buying and selling
is done by people.”
Mr. Tung still monitors the
markets on his iPhone, but he
has shifted some attention to
passions such as Latin dancing
and singing opera. He plays
more mahjong and is proud of
how he has stayed fit, sometimes asking people to feel his
biceps and saying, “nice, right?”
Blue-collar traders like Mr.
Tung, many of them colorful
characters, are being replaced
around the world by mathematicians and data scientists who
create software models to beat
markets. Online trading for the
masses has also helped usurp
the floor broker’s role.
Most major stock exchanges
have closed traditional trading
floors. At the New York Stock
Exchange, an outlier, floor trading represents less than 3% of
U.S. stock trading, according to
research firm TABB Group.
Hong Kong seemed to be a
holdout until August, when its
exchange’s operator, Hong Kong
Exchanges & Clearing Ltd., or
HKEX, said it would close its
floor this month. The exchange
said the decision was “a result
of more and more exchange
participants electing to trade at
their own offices due to the advancement of technology.”
Since August, traders have
slowly been moving out. From
about 30 this summer, numbers
had dwindled to five traders last
week. “I miss seeing my friends
down here,” Mr. Tung said.
He got his start in securities
in Shanghai working for his uncle. At age 14, he gathered orders from traders, writing them
on a chalkboard.
Business dried up when the
Communist Party came to
power in 1949. Mr. Tung spent
a few years trading “under the
table,” he said, brokering deals
for mainland-China investors
who wanted to sell positions in
Hong Kong-listed companies.
After a stint in Germany, he
moved to Hong Kong, where in
BILLY H.C. KWOK FOR THE WALL STREET JOURNAL
FROM PAGE ONE
David Tung Wai, ‘Cigar King’ to peers, on the Hong Kong trading floor.
1969 he opened Chung Lee &
Co., a brokerage firm named after his uncle.
Christopher Cheung Wahfung recalls, as an 18-year-old
broker in 1971, seeing Mr. Tung
as a “big boss” from Shanghai.
“He is quite tall and dresses like
a typical wealthy Shanghainese,” said Mr. Cheung, now
chief executive of Christfund Securities, a Hong Kong brokerage.
Traders, he added, often addressed the broker as “Boss
Tung.” Mr. Tung used his sway
to bail out Mr. Cheung. “I was
caught once playing poker inside the trading hall and faced
the risk of temporary ban from
trading,” Mr. Cheung said. Mr.
Tung had a word with managers, “and settled this for me.”
Back then, Mr. Tung said,
with booming markets “life was
good.” Then came the 1973 oil
crisis, after which Hong Kong’s
Hang Seng Index plunged more
than 80% over a few years—
more traumatic, he said, than
subsequent crashes. “There was
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Thursday, October 26, 2017 | A6A
FINALLY, AFTER 40 YEARS,
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*THE RELATIONAL DATABASE WAS INTRODUCED OVER 40 YEARS AGO.
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A6B | Thursday, October 26, 2017
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Thursday, October 26, 2017 | A7
WORLD NEWS
NEW DELHI—The U.S. and
India agreed to work together
more closely to strengthen regional security and prevent
other nations from providing
safe spaces for terrorists, during a visit here by Secretary of
State Rex Tillerson.
Indian Foreign Minister Sushma Swaraj said Wednesday
the U.S. and India plan to hold
talks with Afghanistan aimed
at increasing regional stability.
Ms. Swaraj said the two
sides also agreed Pakistan must
take immediate steps to end
havens for terrorists on its soil.
India and the U.S. say Pakistan
harbors terrorist organizations
that launch attacks in neighboring Afghanistan and India, a
claim Islamabad denies.
“We believe President [Donald] Trump’s new strategy can
succeed only if Pakistan takes
action against all terror
groups,” Ms. Swaraj said, referring to the Trump administration’s approach to the Afghanistan conflict. That policy
depends on ending havens for
Afghan militants in Pakistan,
the U.S. has said.
Mr. Tillerson, who arrived in
New Delhi after a visit to Islamabad, said he had told Pakistani leaders “too many terrorist organizations find a safe
place in Pakistan,” and that
their expansion could undermine the stability of Pakistan’s
government.
In Wednesday’s talks, Indian
and U.S. officials also discussed
efforts to boost India’s security
role in the Indo-Pacific region
by equipping it with advanced
military technology and expanding cooperation with U.S.
allies in Asia, such as Japan.
“The U.S. supports India’s
emergence as a leading power
and will continue to contribute
to Indian capabilities to provide security throughout the
region,” Mr. Tillerson said.
The U.S. sees India as a
democratic counterweight to
China and has sought to bring
New Delhi closer into its orbit.
In an India-focused speech last
week in Washington, Mr. Tillerson referred to the world’s
largest democracies as “the
two bookends of stability on
either side of the globe” and
said they “must serve as the
eastern and western beacons
of the Indo-Pacific.”
Although India is unwilling
to enter a formal alliance with
the U.S., it has shed its reluctance to building closer security and economic ties as it
confronts growing Chinese
power. Beijing has expanded
its footprint in India’s neighborhood, with infrastructure
and port projects in the region.
BY MATINA STEVIS-GRIDNEFF
NAIROBI, Kenya—A controversial repeat-run election
scheduled to take place in
Kenya on Thursday is set to go
ahead, after the Supreme
Court failed to decide whether
to block it, saying five justices
didn’t show up.
The court’s inability to reach
a ruling was another episode in
a monthslong political saga
that has thrown one of Africa’s
most promising economies and
democracies into crisis.
“Based on assurances we
have received, elections will
go on as scheduled,” Wafula
Chebukati, the chairman of the
electoral body, said at a press
conference. “Polling stations
will open at 6 a.m.”
The court was due Wednesday morning to decide whether
the vote should be postponed,
after a last-ditch petition was
brought in an effort to block it,
but said it lacked a quorum to
make a judgment.
Chief Justice David Maraga
told the court that just two of
the seven justices were present, with others “indisposed,”
“ill” or “out of town,” and
promised to rule when a quorum was reached, but didn’t
specify when that might be.
Kenyans voted for a new
president on Aug. 8, but the
Supreme Court annulled the
election in September because
of widespread irregularities. A
date to repeat the vote was set
for Oct. 26.
President Uhuru Kenyatta,
whose re-election was overturned, has been campaigning
in recent days, rallying his
supporters to vote for him
again and insisting elections
must be held on Thursday to
avoid further uncertainty.
Raila Odinga, his veteran
nemesis who withdrew from
the rerun this month, has been
urging his supporters to boycott the elections, claiming the
government plans to rig the
vote. He has led a few protests
in his western Kenyan strongholds, but hasn’t campaigned.
Calls to postpone the election grew this week, with the
International Crisis Group
warning violence could break
out because of the extreme rift
between the two men and
YASUYOSHI CHIBA/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY NIHARIKA MANDHANA
Kenya Court Won’t Block New Vote
Opposition leader Raila Odinga’s backers, who urge a boycott of the vote, run from police in Kisumu.
their entrenched positions.
Tensions escalated last
week when the chief of
Kenya’s electoral commission
said he wasn’t able to deliver
a credible election amid meddling from candidates and
threats of violence, after a top
electoral official resigned and
Continued from Page One
other U.S. publications, he issued a plea to Washington and
Tehran not to involve Iraq in
their growing confrontation
over Iran’s nuclear deal and
missile program, and the U.S.
threat of renewed sanctions.
Iraq, like Iran, is majority Shiite and Mr. Abadi’s predominantly Shiite party has been
allied with Tehran for decades.
“What we are telling everyone, including our Iranian
neighbors and the U.S., who
have become our friends by
supporting us in our fight
against Daesh, is that we welcome your support, we would
like to work with you, both of
you, but please don’t bring
your trouble inside Iraq,” Mr.
Abadi said in the interview,
using the Arabic acronym for
Islamic State.
A senior U.S. official said the
ball is in Iran’s court. “We have
no intention of conducting a
campaign against Iran in Iraq.
But it will really be up to the
groups that may or may not be
under the control of the prime
minister,” the official said, referring to Iran-backed Shiite
militias. “What will happen will
depend upon the actions of the
proxies of Iran inside Iraq.”
The conflict over an independence referendum in Kurdistan—where Iranian mediation allowed Mr. Abadi’s forces
to seize the oil-rich province
Tuesday that they would scale
back their operations during
the new vote, citing security
concerns for their staff.
The electoral gyrations
have created a deep rift between the two parties, with no
side seemingly prepared to negotiate a compromise.
Under Fire, Kurds Offer Baghdad a Concession
Iraqi Kurds offered to shelve
their pursuit of statehood for
now as pressure mounts on the
leader of the country’s semiautonomous region to step aside
and the U.S. seeks to ease tension between two vital allies in
the fight against Islamic State.
Tensions between Baghdad
By Isabel Coles and Ali
A. Nabhan in Erbil,
Iraq, and Yaroslav
Trofimov in Baghdad
and the Kurds have risen since
last month’s independence referendum. Prime Minister
Haider al-Abadi said in an interview that the vote—which
Iraq and the U.S. opposed—had
set the Kurdish dream back for
years. “And that was my warning to them,” he said.
Washington says it isn’t taking sides in the dispute, and a
senior U.S. official called for
military advances to stop and
negotiations to begin. Since the
referendum, Iraqi forces have
seized a swath of Kurdish-held
territory—much of it captured
from Islamic State—and Mr.
Abadi has vowed to retake
Kurdish-controlled
border
crossings.
“It’s hard to argue that the
Iraqi government doesn’t have
the legal and constitutional
right to control its border
crossings,” said the U.S. official.
“But it’s easy to argue that
there is a better way to do it
than what they are doing now.”
Once military action ceases,
the official said, the “United
States—and I think coalition
forces as well—are more than
Iraqi Kurdish President Masoud Barzani voting in a disputed independence referendum in Erbil last month.
willing to help with disengagement and trying to figure out
what the next step will be.”
U.S. Secretary of State Rex
Tillerson visited Iraq this week
and met with Mr. Abadi. Mr.
Tillerson didn’t go to Erbil, the
capital of the Kurdish region,
where Western officials typically travel to speak to Mr. Barzani and other officials after
visiting Baghdad.
The Iraqi Kurds’ offer was
aimed at starting talks with
Baghdad. A Kurdish spokesman
on Wednesday said the Sept. 25
referendum results would be
“frozen or suspended in a way
that will create an atmosphere
for negotiation.”
The Kurdish concession fell
short of annulling the vote,
something Baghdad has demanded as a precondition for
talks. It came as Iraqi forces are
massing, according to Iraqi and
Kurdish military sources, for an
incursion into other areas the
Kurds control in northern Iraq.
A self-ruled Kurdistan re-
FROM PAGE ONE
IRAQ
said she feared for her life.
The situation has also
soured for international observers, whom the opposition
blames for missing major shortcomings in the original August
vote. The European Union’s
election-observation mission
and other observers said late
AZAD LASHKARI/REUTERS
U.S., India
Agree to
Bolster
Security
Mnuchin Launches
Antiterror Center
In Saudi Arabia
RIYADH—Treasury Secretary Steven Mnuchin kicked off
a week of high-level meetings
across the Middle East aimed
at increasing financial pressure
on Iran and cracking down on
terror financing in the region.
On Wednesday, he
launched a new regional antiterror-finance center in Saudi
Arabia called the Terrorist Financing Targeting Center,
which brings together the U.S.,
Saudi Arabia, Qatar and five
other Gulf states to cut off the
flow of money to terror networks in the region.
In its first steps, the group
said it would target eight leaders, financiers and facilitators
of Islamic State and al Qaeda
operations in Yemen.
Through a series of meetings in Saudi Arabia, Israel, Qatar and the United Arab Emirates, Mr. Mnuchin and other
senior Trump officials also are
seeking to bolster a new Iran
policy, announced earlier this
month, which aims to confront
the U.S. adversary more aggressively, particularly over its
weapons programs and links to
terror groups in the region.
—Ian Talley
and Margherita Stancati
of Kirkuk this month—adds
another complication. While
the U.S. initially endorsed Mr.
Abadi’s move, Washington is
now urging his government
and the Kurdish authorities to
begin a dialogue.
A roadside bombing north
of Baghdad that U.S. officials
believe was perpetrated by a
pro-Iranian militia killed a U.S.
service member, Spc. Alexander Missildine, on Oct. 1. Some
recent rocket attacks on Baghdad’s Green Zone, which
houses the U.S. Embassy, were
attributed by American officials to Iranian proxies.
Mr. Abadi said the U.S. and
other Western troops are in Iraq
on the government’s invitation
and that Baghdad won’t tolerate
hostile action against these coalition forces. “Any attack on
them is an attack on Iraq, on
the sovereignty of Iraq, the sovereignty of the state,” he said.
Most of the Shiite militias,
grouped under the umbrella of
the Popular Mobilization Forces,
with some 125,000 men, nominally came under Mr. Abadi’s
authority last year. In practice,
however, some of the most
powerful of them still take their
orders from Tehran, U.S. officials said. Iran has repeatedly
said it seeks stability in Iraq.
Buoyed by recent successes
against Islamic State and
Kurdish forces, and with national elections scheduled for
May, Mr. Abadi is increasingly
trying to position himself as
an Iraqi nationalist leader who
isn’t beholden to Tehran.
In the interview, he reiterated his pledge to secure the
Kurdish-controlled
border
crossing with Turkey and
warned Kurdish forces not to
fight against Iraqi troops.
“Iraq must have a border
with Turkey. They should not
cut Iraq from Turkey,” Mr.
Abadi said. “The Kurds are our
citizens. My priority is to protect them, to protect the rest
of Iraqis, but I’m sending a
powerful message: If you continue to kill Iraqi soldiers you
will be held responsible.”
While Mr. Abadi secured the
backing of Sunni Arab states
and Turkey over his handling
of Kurdistan, the issue of Iraqi
Shiite militias, some of them
operating as de facto subsidiaries of Iran’s Revolutionary
Guard Corps, remains a sore
point in relations with these
neighbors—and Washington.
Some of the groups reacted
angrily when U.S. Secretary of
State Rex Tillerson said on
Sunday that Iranian militias in
Iraq “need to go home.”
Qais al Khazali, the head of
one such Iranian-backed militia,
Asaeb Ahl al-Haq, retorted by
tweeting that the 5,200 American troops in the country
should “get ready to immediately leave our Iraqi homeland.”
In the interview, Mr. Abadi
rejected such calls, saying that
any decision to ask U.S. forces
to leave should be up to the
country’s parliament and not
to individual political groups.
gion, which had enjoyed considerable autonomy from Baghdad since the 1990s, was
officially recognized by the
2005 Iraqi constitution. The
Kurds took control of some territory outside the formal
boundary of the region in the
years that followed, and captured more land in the fight
against Islamic State.
The clash between Baghdad
and the Iraqi Kurds comes as
Islamic State is on the verge of
defeat in Iraq. Kurdish Pesh-
merga forces have been a valuable partner for both Baghdad
and Washington in the fight.
But the decision by Masoud
Barzani, the leader of the Kurdish region, to pursue the referendum over the objections of
most of the international community has undermined the
good will Iraqi Kurds built during that battle.
Western diplomats and some
Iraqi and Kurdish politicians
say constructive dialogue may
only be possible if Mr. Barzani,
who is 71, resigns.
“It might be that the best
possible thing that can happen
for the Kurdistan region is for
Masoud to stand down…with
his dignity intact as a former
president, but pass the baton
on to the younger generation
and away from the septuagenarians who are calling the
shots,” said one Western diplomat. A spokesman for Mr. Barzani didn’t respond to requests
for comment.
To his most-faithful adherents, Mr. Barzani’s insistence
on holding the vote was a noble
endeavor thwarted by forces
that would eventually have
moved against the Kurds anyway. To critics, however, Mr.
Barzani’s decision was a reckless gamble with the fate of his
own people.
Either way, the Kurds now
have little option but to negotiate with Baghdad from their
weakest position since 2003,
when the Kurdistan region began its transformation from an
impoverished backwater to a
key player in the politics of Iraq
and the Middle East.
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A8 | Thursday, October 26, 2017
* ****
THE WALL STREET JOURNAL.
IN DEPTH
‘It’s a way to
whittle down a
big universe into
something more
manageable.’
How funds with different
ratings compare
Many investors treat the stars as
a guide to future performance.
But over time, the performance
of funds with different overall star
ratings converges.
3 years since initial rating
TIM BOYLE/BLOOMBERG NEWS
Morningstar gives funds one to five stars
for past performance, with five the best.
Morningstar founder
Joe Mansueto on the
star ratings
5 years
Average rating after 10 years
3.0
2.8
2.5
2.2
1.9
How five-star funds
performed over time
Notes: Stars on left represent the initial
overall rating. Other points on chart are star
ratings for the following three, five or ten
years. Funds rated by Morningstar can have
up to four ratings: a three-year rating, a
five-year rating, a 10-year rating, and an
overall rating that is based on a combination
of the others.
For every fund given an overall rating of five stars,
The Wall Street Journal looked at future Morningstar
ratings to assess how the fund performed.
STARS
Continued from Page One
Morningstar’s reach is so
pervasive that the ecosystem
for buying and selling mutual
funds revolves around it. Fund
firms heavily advertise their
star ratings. Money typically
pours into funds after they get
a five-star rating from Morningstar, the Journal found. It
flows out if they lose stars.
There is no question that
Morningstar has greatly improved the transparency and
rigor of data on mutual funds’
holdings and performance,
making it easier for individual
investors to compare funds.
Morningstar says it has
never claimed its star ratings
suggest how funds will do in
the future. The star system is
strictly backward-looking, assessing past performance, the
firm says. “We have always
been very clear that it’s not
intended to predict future performance,” the company said
in a written statement.
“The star rating works well
when it’s used as intended: as
a first-stage screen that helps
identify lower-cost, lower-risk
funds with good long-term
performance,” Morningstar
said. “It is not meant to be
used in isolation or as a predictive measure. Reversion to
the mean is a powerful force
that can affect any investment
vehicle.”
Future performance
The firm sends conflicting
signals about the star ratings’
predictiveness. A study published by Morningstar last
month said the stars point investors to funds “likelier to
outperform in the future.”
Morningstar founder Joe
Mansueto said in an interview
that the firm’s analysis of past
ratings found “some modest
predictive value.” Chief Executive Kunal Kapoor, in another
interview, called the star system “a better predictor than it
ever has been.”
In its written statement,
Morningstar said its analysis
has found “the Star Rating is
moderately predictive,” which
“conforms to what we’d expect
of a backward-looking, entirely
quantitative measure.”
The Journal’s analysis
found that most five-star
funds perform somewhat better than lower-rated ones, yet
on the average, five-star funds
eventually turn into merely ordinary performers.
Inside Morningstar, some
employees have expressed discomfort about how much investors rely on the ratings.
Stephen Wendel, head of behavioral science at the Chicago-based firm, wrote in the
June/July issue of Morningstar
magazine that part of his job
was “examining whether we
are contributing to abuses in
the industry,” and said:
“Morningstar’s star ratings for
funds are clearly used in the
industry to imply that funds
that performed well in the
past will do so in the future.”
He added, “That needs to
change.”
Morningstar’s Mr. Mansueto, 61, said the star system
“is a way to whittle down a
big universe into something
more manageable.” The firm
said it has worked to make investors understand the star
ratings should be just a starting point for their research.
Since 2011, Morningstar has
had a second rating system,
lesser known and of limited
scope, that includes analysts’
opinions. Unlike the star ratings, it is designed to be forward-looking,
Morningstar
says. In this system, too, the
Journal found the performance of funds rated high, low
and in between tended to converge after several years.
Mr. Mansueto, growing up
in suburban Chicago, sold lemonade by the roadside before
moving up to Christmas trees.
At the University of Chicago,
he and a roommate sold chips
and soda and advertised by
hanging posters for the “Room
607 Soda Service.” He also
made his first mutual-fund investment, with $250 from a
restaurant job.
After college, he and the exroommate, Kurt Hanson,
started a business that provided market research for radio stations. It surveyed listeners and created a sheet of
charts detailing their behavior.
Mr. Mansueto then got a job
as a financial analyst at Harris
Associates LP, a Chicago
money manager.
Mutual funds were proliferating, and a few fund managers were becoming stars, such
as John Templeton and Peter
Lynch. Funds didn’t give much
information about themselves,
and what they provided was
opaque to nonprofessionals.
Mr. Mansueto told a colleague
he wanted to start a fund
newsletter in the mold of the
radio-station fact sheets.
The
colleague,
Ralph
Wanger, cautioned that financial newsletters didn’t have a
record of success. “That
turned out to be the dumbest...thing I ever said,” he recalls. “What I meant to say
was, ‘Joe, that’s the best idea
I’ve ever heard—how about I
quit and we go 50-50?’ ”
Mr. Mansueto launched
Morningstar from his onebedroom apartment in 1984
with $80,000, taking the name
from the ending of Thoreau’s
“Walden”: “The sun is but a
morning star.”
He later spent $50,000 to
hire Paul Rand, the noted designer of IBM’s logo, who created a signature red font consisting of tall letters with an
“O” looking like a rising sun.
With reports obtained from
fund companies, Mr. Mansueto
laid out data points so they
were easy to read, and advertised his reports in Barron’s.
When BusinessWeek later
asked him to devise rankings
for an issue devoted to mutual
funds, Mr. Mansueto began
work on what would become
his five-star rating system. He
toyed with using symbols suggesting little bags of gold before deciding on stars.
Since then, assets invested
in U.S.-based mutual funds
have multiplied more than
forty-fold. Morningstar rode
One star
Merged
Two stars
Liquidated
Three stars
Four stars
Five stars
These squares represent 100% of the funds that received
an overall rating of 5 stars
Of funds with a five-star
rating, three years later
only 14% had performed
at a five-star level.
Morningstar rating of the same funds’ performance over the three
years after they were rated five stars
Morningstar rating of the same funds’ performance over the five
years after they were rated five stars
Morningstar rating of the same funds’ performance over the ten
years after they were rated five stars
Source: WSJ analysis of Morningstar data
the wave and went public in
2005.
Today, investors descend
on Chicago for Morningstar’s
annual conferences, a pilgrimage for money managers
and advisers hoping to gather
assets. At this year’s event,
shirtless male acrobats cartwheeled and stood on each
other’s shoulders while financiers sipped cocktails and
mingled.
Morningstar groups funds
into categories based on their
investing style or area, more
than 100 groups in all. It compares funds not to all other
funds, nor to the overall market, but to other funds with
Five-star funds’
ratings for the
following five years
averaged three stars,
the analysis found.
the same investment focus.
The top 10% of funds in each
group receive five stars, the
bottom 10% get one, and the
rest get two, three or four.
The ratings don’t reflect
raw performance, but performance adjusted for funds’ degree of risk. For that calculation, Morningstar uses an
algorithm Mr. Mansueto devised reflecting variation in
month-to-month returns.
The firm rates funds on
how they did over three
years—plus over five years
and 10 years if they’re old
enough—and assigns them an
overall rating based on the
others. A fund thus could have
THE WALL STREET JOURNAL.
as many as four ratings from
Morningstar, though most investors see only the overall
one. New star ratings come
out each month.
Most funds have multiple
“classes,” each charging a different expense fee. Since varying expenses spell varying returns, Morningstar rates each
class of each fund separately.
Its star ratings covered
over 10,800 mutual funds—
and almost 39,000 share
classes—during the 14 years
studied by the Journal. The
only qualification to be rated
is being in business three
years. The ratings include index funds, which try to mimic
the performance of markets.
(The Journal’s analysis
didn’t include exchange-traded
funds, or ETFs, which trade
throughout the day like a
stock. Morningstar began rating ETFs, too, late last year,
after the period covered by
the Journal’s analysis.)
Going back to 2003, the
Journal examined the rating of
every investment class of every fund, in every month, and
how these changed—some
three million records in all.
The Journal also reviewed
retirement-plan data, fund ads
and regulatory filings, and interviewed dozens of current
and former Morningstar employees, fund officials, financial advisers and investors.
For funds that had an overall five-star rating at any
point, the Journal found that
their average Morningstar rating for the following five years
was three stars—in other
words, halfway between the
top and the bottom.
When funds picked up a
fifth star for the first time in
the period included in the
Journal’s analysis, half of them
held on to it for just three
months before their performance and rating weakened.
The findings were especially stark among U.S.-based
domestic equity funds. Of
those with the five-star badge,
a mere 10% earned five stars
for their performance over the
next three years. Only 7% merited five stars for the next five
years, and 6% did for 10 years.
For all of the measured periods—three, five and 10
years—five-star domestic equity funds were more likely to
turn in a one-star performance
than a top one.
That means a five-star rating for the equity funds was
no more an omen of success
than it was one of failure.
Morningstar’s ratings of
taxable-bond funds proved a
little more indicative of future
performance. Of five-star bond
funds, about 16% turned in a
five-star performance over the
next five years.
Still, 8% of five-star taxable-bond funds did poorly
enough to merit only one star.
Police pensions
Hickory Hills, Ill., has a
small pension fund for about
50 active and retired police officers. In 2011, it moved about
$2.1 million into the Nuveen
Santa
Barbara
Dividend
Growth Fund, which had a
five-star Morningstar rating.
The pension board paid
heed to star ratings. “Our brokers thought it was one of the
best measurements we had
available to decide whether
the fund is worth investing
in,” said board secretary Mary
McDonald, referring to brokers
from Morgan Stanley.
The fund had beaten 95% of
others in Morningstar’s “large
blend” category—funds that
buy large-company stocks using a blend of a “value” strategy and a “growth” strategy.
The following year, the fund
beat only 26% of similar funds,
and in 2013 just 11%.
The president of the Santa
Barbara fund family, John
Gomez, attributed the Dividend Growth fund’s performance to its focus on stocks
with growing dividends, not
just the highest-yielding ones.
The Hickory Hills board
pulled $1.2 million from the
fund in 2014, and in early 2016
$750,000 more. It has since
switched to a local broker, in
part because of Morgan Stanley’s reliance on Morningstar
ratings, said David Wetherald,
a police officer who is also the
pension board’s president.
It was frustrating because
“we rely a lot on the financial
people. We’re not completely
blind and naive, but we’re
smart enough to know that
this is what they do,” Mr.
Wetherald said. Morgan Stanley declined to comment.
Morningstar said its fivestar rating of Nuveen Santa
Barbara Dividend Growth in
2011 “was an accurate historical grade on the fund. It was
not intended as or presented
as a conclusion as to what
they should do.”
Morningstar also said this
type of fund generally did
poorly after 2011. The example
“presents an underperforming
fund in a badly underperforming category as if it’s representative of the full rating set,
which it’s not,” the firm said.
The Journal’s analysis
found that investors put new
money into five-star-rated
funds in 69% of the months
they held that rating, compared with 29% for one-star
funds.
Morningstar acknowledged
its ratings can influence demand, though Mr. Mansueto
says he believes investors typically move money mainly
based on a fund’s performance, not its star rating.
The Journal found over a
dozen cases where well-performing funds attracted few
investors until they won a
fifth Morningstar star.
Tiny Buffalo Emerging Opportunities Fund saw little interest despite beating many
similarly focused funds, including gaining 24% in 2012.
After it got a fifth star from
Morningstar in spring 2013,
hundreds of millions came in,
quadrupling assets to above
$400 million in five months.
The small management
team in Mission, Kan., closed
the fund to new investors six
months later, a step managers
sometimes take when given
more cash than they feel they
can invest. The Journal found
many instances of funds closing after an influx that followed a high star rating.
At Buffalo Emerging Opportunities, fortunes soon reversed. In 2014 it lost over 7%
and trailed about 95% of other
funds focused on growing
small companies. In the next
two years its Morningstar rating fell to two stars and assets
plunged to under $100 million.
Buffalo Funds declined to
comment.
Inflows sparked by high
star ratings are especially important for managers of actively managed funds now that
more investors have migrated
to passive ones that just try to
match an index. On calls with
securities analysts, fund-company chiefs often trumpet how
much of their asset total is in
four- and five-star funds, as a
sign of the companies’ ability
to attract cash.
From his office in Mechanicsburg, Pa., financial adviser
Donald DeMuth starts each
workday by logging onto
Morningstar Office, which
helps him organize client portfolios. He uses Morningstar
data to check on fund performance and details such as how
fast fund portfolios turn over.
Please turn to the next page
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THE WALL STREET JOURNAL.
Thursday, October 26, 2017 | A9
* * * * *
IN DEPTH
Money In Motion
Case Studies
The Journal analyzed how much money flowed into or out of funds over three years
based on the overall ratings investors saw and how well the funds actually performed.
Nuveen Santa Barbara
Dividend Growth Fund*
A pension fund moved
$2.1 million into the
Nuveen Santa Barbara
Dividend Growth Fund in
November 2011, when the
fund had a five-star rating.
Investors pour money
into top-rated funds
even if their performance
declines.
1
2
100%
Net inflow
50%
Net outflow
10%
THREE-YEAR PERFORMANCE
3
4
5
Buffalo Emerging
Opportunities Fund
A financial adviser invested After Morningstar gave the
tiny fund five stars in the
clients in Permanent
spring of 2013, investors
Portfolio in early 2012
poured in hundreds of
when it had five stars, but
millions of dollars.
it quickly started
underperforming.
Permanent Portfolio*
Overall rating
Stars
5
5
4
3
2
4
AVERAGE OVERALL RATING
3
1
2
2010
’15
2005
’10
’15
2010
’15
3-year rating
5
4
3
2
1
Cash in or out
$60 million
1
20
0
Investors pull money from low-rated funds
even if their performance improves.
-20
Note: Funds rated by Morningstar can have up to four ratings: a three-year rating, a five-year rating, a 10-year rating, and an
overall rating that is based on a combination of the others.
Mr. DeMuth, 66, has used
Morningstar so long he can’t
remember when he started.
“With rare exception, we
would want a fund to have five
stars,” he said.
In early 2012 he put some
of his clients’ money in a fund
called Permanent Portfolio
when it had a five-star Morningstar rating. The fund invests across an array of assets,
including gold and silver.
Its performance had already
started to slip. By the end of
2012, it was 5 percentage
points behind its Morningstar
category benchmark, the
“Morningstar Moderate Target
Risk,” which is a mix of global
bonds and global stocks.
Mr. DeMuth moved clients
out in the fall of 2013, a year
when the fund trailed that
benchmark by 16 points. At
the end of 2013, Morningstar
gave the fund a one-star rating
for its performance over the
prior three years.
Client David Peterseim, a
55-year-old retired surgeon in
Charleston, S.C., said he was
relieved the financial adviser
got out. He was disappointed
“Morningstar didn’t have
some semblance to reality,” Dr.
Peterseim said.
Michael Cuggino, president
of the family of Permanent
funds, said Permanent Portfolio’s performance suffered as
gold and silver prices fell.
Morningstar said Permanent Portfolio was an “outlier”
that “was designed as an inflation hedge; when precious
metals are in favor, it will
score well, and when they’re
not, this fund won’t do well.”
Major rallies in gold and silver
ended in 2011, shortly before
Mr. DeMuth invested.
firm’s marketing cautions that
“a high rating alone is not a
sufficient basis for investment
decisions.” Morgan Stanley declined to comment.
Fund firms often cite Morningstar ratings in their advertising—at times even out-ofdate ones. AllianceBernstein
ran an ad for nine of its funds
in a spring edition of Private
Wealth magazine, citing star
ratings from September 2016.
Two of the funds’ ratings had
fallen by the time the ad ran.
A spokesman for AllianceBernstein said it made a “human error” in two instances
out of “hundreds of digital and
print ads...that quarter.”
Dallas-based Hodges Small
Cap Fund’s retail share class
beat 95% of similar funds in
2010 but had less than $100
million in assets. Late in 2011
Morningstar gave it a fifth
star, and everything changed,
said Craig Hodges, who manages Hodges Capital Management. Charles Schwab put the
fund on its “Schwab Select
List.” Mr. Hodges and his
brother Clark advertised their
star rating on a billboard in
Dallas/Fort Worth airport.
Hodges Capital paid over
$10,000 to Morningstar for the
right, to advertise the stars,
Craig Hodges said. By 2014
year-end, assets in the fund
hit about $1.6 billion, according to Morningstar data.
Michael Rawson, who was a
Morningstar fund analyst for
six years until spring 2016,
said asset managers who pay
to advertise their stars are
misrepresenting their funds
because the ratings are solely
backward-looking.
“We know people misuse it.
If we know people misuse it,
why don’t we do something
about it?” Mr. Rawson said.
Morningstar said it publishes the ratings because it
believes they have investment
merit, not for financial gain. It
said its intellectual-property
licensing packages, which include the stars, contributed
just 4% of revenue in 2016.
Mr. Mansueto said employees are encouraged to debate
issues related to its products,
but the efficacy of its star ratings no longer comes up internally. “This is not a hot topic
or even a cold topic at Morningstar today,” he said.
As for Hodges Small Cap,
its performance has since
turned down. Its rating has
fallen to two stars from five,
and assets that had soared after the top rating have
dropped by more than half.
Morningstar
in
2011
launched a second rating system, currently covering 26% of
fund share classes, in which
the firm’s analysts do a more
qualitative assessment. Unlike
the stars, analysts’ ratings often refer to likely future performance. The firm said ana-
2010
$100 million
$500 million
40
’15
0
50
-500
0
-1,000
-50
2005
’10
’15
2010
*Share class I
lysts’ ratings reflect its level
of conviction that a fund will
“outperform its peer group
and/or relevant benchmark.”
The analysts give funds one
of three medals—gold, silver
or bronze—or a ”neutral” or
“negative” rating.
The Journal examined how
these funds performed in future years, as measured in
their star ratings. It found that
five years after having a goldmedal rating from Morningstar’s analysts, funds had an
average rating of 3.4 stars for
Some funds do well
but draw little cash
until they gain a fifth
star, then see a burst
of new investment.
that five-year period.
Silver-medal funds were
rated 3.3 stars for their performance over the following
five years. Bronze-medal funds
had an average rating of 3
stars. In other words, while
funds rated highly by the
Morningstar analysts did better, the differences among the
funds weren’t large.
A Morningstar spokeswoman said there was a mismatch in how the Journal
evaluated the performance of
analyst-rated funds because it
relied on star ratings. She said
unlike analysts, the star ratings take into account a
“load”—a sales fee—that some
funds have.
The Journal analysis also
found Morningstar analysts’
ratings of funds were overwhelmingly positive. From November 2011 through August
2017, the firm gave analyst
ratings to about 9,200 fund
share classes. Just 421, or 5%,
received negative reviews. At
the end of August, only 1% did.
Mr. Mansueto said analysts
tend to choose better funds to
examine, since they can’t review them all. “Investors want
to know what funds they
should be investing in,” Mr.
Mansueto said. “They don’t
care so much about what the
terrible funds are.”
Morningstar
recently
started a third “quantitative
ratings” system that it says
applies analyst screening to a
broader universe of funds.
This one is likely to include
more negative ratings, executives said.
J.P. Morgan Chase & Co. is
among asset managers that
regularly send portfolio managers to talk to Morningstar
analysts about the merits of
their funds. BlackRock Inc. has
a team that works to persuade
Morningstar analysts of the
merits of various funds, ac-
cording to people familiar
with the matter.
They added that BlackRock
CEO Laurence Fink met with
Morningstar analysts early
this year to discuss the firm’s
ratings. In May, Morningstar
upgraded to positive BlackRock’s “parent pillar” rating,
an evaluation in which analysts are looking for factors including an alignment of interests
between
fund
shareholders and those who
manage the funds.
A BlackRock spokesman
said its team that works with
research providers “is focused
on providing transparency, education and information about
our products to facilitate informed decisions.”
Morningstar said BlackRock
had changed how portfolio
managers were paid in a way
that led to their having more
of their own money invested
in BlackRock funds. “We followed the same process in
evaluating Blackrock’s standing as a parent that we do
with any other firm,” said a
Morningstar spokeswoman.
Funds of its own
JEFF LAUTENBERGER FOR THE WALL STREET JOURNAL, MELISSA LYTTLE FOR THE WALL STREET JOURNAL
Used as a crutch?
Current and former Morningstar employees said some
advisers use the ratings as a
crutch.
“It’s a cover-your-ass type
of service,” says Samuel Lee, a
former strategist at Morningstar. “An adviser can say, ‘I’m
going to put you in this fund,
it’s a 5-star fund,’ …and if
something goes wrong the adviser can shunt blame to
Morningstar.”
Scott Jennings, a former
Morgan Stanley financial adviser, recalled struggling last
year to explain to a company’s
employees which funds they
should choose in their retirement plans. He decided to
keep it simple and told them,
“You only have two funds
rated by Morningstar—one’s a
two-star and one’s a four-star.
Go with the four-star.” He
could see a look of understanding flash across their
faces.
At Morgan Stanley, “Advisers get in trouble when they
go against the grain,” Mr. Jennings said. “You isolate yourself more if you sell something
else rather than just go with
what research recommends.”
Morningstar said if advisers
use the ratings this way, “this
is a fault with the users of the
ratings, not the ratings.... If an
advisor wants to do proper
due diligence, we provide a robust set of information.” The
’15
Source: WSJ analysis of Morningstar data
‘With rare exception, we would
want a fund to have five stars.’
‘Advisers get in trouble when
they go against the grain.’
Financial adviser Donald DeMuth
Former Morgan Stanley financial adviser Scott Jennings
Mr. Kapoor, the Morningstar CEO, said analysts operate
independently from fund companies and without influence
from management despite frequent angry calls executives
must field. “We prize our independence,” he said.
Morningstar’s application
to the Securities and Exchange
Commission for permission to
launch nine mutual funds of
its own has led some critics to
cry conflict of interest. The
Morningstar spokeswoman
said the firm is in a quiet period related to the filing, restricting what it can say, but
she said the firm’s analysts sit
“in a separate entity” from
Morningstar Investment Management, which would oversee
the company’s funds.
The Journal spoke with
more than three dozen executives at asset-management
firms large and small about
Morningstar. Few would go on
the record.
Several years ago, some
were unhappy when Morningstar changed the way it calculates its “stewardship grade,”
which is supposed to measure
the corporate culture of each
fund company. Executives
from fund companies viewed
the change as the latest example of Morningstar acting unilaterally and without explaining itself.
The
money
managers
drafted a two-page letter to
Morningstar that accused the
company of “bullying” fund
companies and running a monopoly, according to people familiar with the letter.
“The nature of what we do
is going to end up alienating
some portion of the industry,”
said Jeffrey Ptak, Morningstar’s global director of manager research. “That’s not
something we relish but it’s
part of our job.”
When the time came for the
money-management firms to
put their names to the letter,
they balked. The letter was
never sent.
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A10 | Thursday, October 26, 2017
NY
THE WALL STREET JOURNAL.
T H E FA S T E S T- S E L L I N G S H O W I N N AT I O N A L
T H E A T R E H I S T O R Y C O M E S T O B R O A D W A Y.
TICKETS ON SALE MONDAY, OCTOBER 30
18 W E E K S O N LY • P R E V I E W S B E G I N F E B R U A RY 2 3
NEIL SIMON THEATRE, 250 WEST 52ND STREET • ANGELSBROADWAY.COM
Visit Ticketmaster.com or call 877-250-2929.
Official Card of
Angels in America
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THE WALL STREET JOURNAL.
Thursday, October 26, 2017 | A10A
NY
* * * *
GREATER NEW YORK
Thomas Spota accused
of trying to cover up
beating of a suspect
by an ex-police chief
BY JOSEPH DE AVILA
A federal grand jury in New
York indicted Suffolk County
District Attorney Thomas Spota
on Wednesday on obstruction
of justice charges connected to
a 2012 assault by the county’s
former police chief.
Christopher McPartland, the
chief of investigations and head
of the government-corruption
bureau of the Suffolk County
District Attorney’s Office on
Long Island, also was charged
in the four-count indictment
that includes conspiracy to
tamper with witnesses and obstruct an official proceeding.
Both men pleaded not
guilty Wednesday in federal
court in Central Islip, N.Y.
They face a maximum of 20
years in prison if convicted.
“Tom categorically denies
the government’s charges,”
said Alan Vinegrad, an attorney for Mr. Spota, who was released on bond and left court
without telling reporters
whether he would resign.
Larry Krantz, a lawyer who
represents Mr. McPartland
said his client “vehemently denies the charges.”
Federal prosecutors allege
that Mr. Spota, 76 years old,
and Mr. McPartland, 51, attempted to cover up the assault
of a handcuffed suspect by former county Police Chief James
Burke in 2012. Mr. Burke beat
Christopher Loeb, who was accused of stealing sex toys, pornography and other items from
Mr. Burke’s police-issued sportutility vehicle. Mr. Burke
pleaded guilty in 2016 and is
serving 46 months in prison.
“Prosecutors swear oaths to
pursue justice and enforce the
SETH WENIG/ASSOCIATED PRESS
Suffolk County District Attorney Indicted
District Attorney Thomas Spota, right, pleaded not guilty when
he appeared Wednesday in federal court in Central Islip, N.Y.
law,” said Bridget Rohde, acting
U.S. Attorney for the Eastern
District of New York. “Instead
of upholding their oaths, these
defendants allegedly abused
the power of the Suffolk County
District Attorney’s Office.”
Following the assault of Mr.
Loeb, the defendants, along
with Mr. Burke and others,
tried to conceal Mr. Burke’s
role in the incident and attempted to impede the probe,
the indictment said.
The indictment was a stunning turn for Mr. Spota, who de-
veloped a reputation for taking
on corruption, including the
successful prosecution of former
town of Islip Supervisor Peter
McGowan, who pleaded guilty
to corruption charges in 2006.
In 2001, Mr. Spota, a Democrat, was elected as Suffolk
County’s district attorney and
has served four terms. He said
earlier this year he wouldn’t
run for a fifth term, citing his
age and a desire to spend
more time with family.
Suffolk County Police Commissioner Tim Sini, a Democrat who is running for district
attorney in the county, said
Mr. Spota should step down.
“He’s unfit to serve under federal indictment,” he said.
Suffolk County Executive
Steve Bellone also called on
fellow Democrat Spota to resign.
Republican
Suffolk
County District Attorney candidate Ray Perini said: “I don’t
see how you can continue.
This kind of cloud—who is go-
ing to trust his judgment?”
Mr. Spota’s relationship
with Mr. Burke dates to the
1970s. At the time Mr. Spota
was prosecuting a high-profile
murder case and Mr. Burke
was a witness. After Mr. Burke
entered the law-enforcement
field, Mr. Spota later hired him
to work for the Suffolk County
District Attorney’s Office.
Earlier this month, Mr.
Spota came under criticism
from Mr. Bellone for using
funds from the county budget
to make “unauthorized bonus
payments” to his staff. Mr.
Spota said he didn’t need approval because the payments
were reimbursed from a fund
of assets and money seized
during criminal investigations.
Among those to receive bonuses: Mr. McPartland, who
got $5,000 in 2014 and $17,500
this year, according to budget
documents.
—Zolan Kanno-Youngs
contributed to this article.
Pact Resurrects
Pier 55 Project
BESS ADLER FOR THE WALL STREET JOURNAL
BY THOMAS MACMILLAN
A Rikers Island inmate competed against a chess grandmaster this week in the first tournament held at the New York City jail.
Chess Is King in Helping Prisoners
BY ZOLAN KANNO-YOUNGS
On a rainy afternoon at the
Rikers Island Jail Complex in
New York City this week, five
men and one woman wearing
tan uniforms sat in front of
chess boards surrounded by an
audience of correction officers
and fellow inmates.
Maurice Ashley, a 2003 U.S.
Chess Federation grandmaster
of the year, walked from one
board to the next, simultaneously playing six games. One
by one, he eliminated the inmates—except for Camilo Arcelay, 37 years old, who used
his king to take Mr. Ashley’s
last pawn. That left Mr. Arcelay and Mr. Ashley with a king
as their last piece.
The result was a draw—
enough for Mr. Ashley, who
also judged the event, to name
Mr. Arcelay the winner of the
first Rikers chess tournament.
“To be in a situation that I’m
in right now in jail, it leaves me
speechless,” Mr. Arcelay said,
referring to his chess victory.
The final round of the twomonth tournament is part of a
series of programming designed
to educate and reduce idleness
funded by a $38.9 million New
York City initiative.
“It teaches them how to
think, how to strategize, in an
environment that is conducive
to those things,” said James
Walsh, the Department of Correction’s deputy commissioner
of adult programming & community partnerships.
While this was the first official tournament at Rikers, chess
has long been popular behind
bars. Carl Portman, 53, author
of “Chess Behind Bars,” and the
manager of prisons chess for
the English Chess Federation,
said the game’s history in prisons dates to World War II.
“The more they’re playing
chess, the less they have time
to attack officers or attack each
other, or concentrate on negative things,” Mr. Portman said.
The five men and one
woman who faced off this week
against Mr. Ashley were finalists from the tournament. The
inmate who played the most
competitive game against Mr.
Ashley would be named the
winner.
During the games, inmates
stood on bleachers cheering,
critiquing and moving their
arms on imaginary boards as if
they, too, were participating.
“Society wastes so much
when we don’t channel the energy and capabilities of those
who have been incarcerated,”
Mr. Ashley said.
The spectators applauded
when Mr. Arcelay won the tournament, earning him a $150
commissary voucher.
“Just when I thought I had
him, he came back,” Mr. Ashley
said. “It just goes to show the
tremendous potential of these
young men and women.”
Mr. Arcelay, who is awaiting
trial on charges of impersonating a police officer and robbery,
said he compares the chess
pieces to his family: His wife is
the queen, and the bishops,
knights and rooks are relatives
who have sacrificed for him.
He said he marshaled patience while playing Mr. Ashley.
“Always step back to analyze
situations,” Mr. Arcelay said.
“And opportunities that are going to be a positive to you.”
After it was abruptly abandoned in September, a $250
million plan to build an island
park called Pier 55 in the Hudson River has been revived,
due to a deal brokered by New
York Gov. Andrew Cuomo.
The governor, media mogul
Barry Diller, real-estate developer Douglas Durst and the
City Club of New York on
Wednesday announced that an
agreement had been reached
to once again attempt to make
the ambitious park a reality.
Mr. Diller, whose family
foundation is the main financial source for the project, had
pulled out of the effort in September, citing escalating costs
and years of litigation. The
move effectively scuttled plans
to erect the grassy 2.4-acre
man-made park, which was to
be mounted on scores of undulating concrete pilings driven
in the riverbed near West 13th
Street in Manhattan.
The park had long been
blocked by litigation brought
by the City Club and funded by
Mr. Durst. The club argued that
the project wasn’t subject to
sufficient environmental review
and complained that it would
block the view of the river.
After Mr. Diller withdrew,
Mr. Cuomo intervened to bring
the parties back to the negotiating table, said a spokeswoman in the governor’s office. Mr. Cuomo, she said, has
agreed to support the completion of the Hudson River Park,
the 550-acre stretch of riverside property between 59th
Street and Battery Place in
Manhattan, as part of the deal.
“I have spoken to the parties involved in the lawsuit
against Pier 55 and expressed
my belief that cooperative efforts to complete the overall
park are more constructive
than litigation and stalemate,”
Mr. Cuomo said in a statement.
A lawyer for the City Club
said it won’t pursue further litigation. “In exchange for holding our nose and letting this
project go through,” the state
finally will complete the Hudson River Park, said Richard
Emery, lawyer for the City
Club. “The stars aligned to get
the park out of its malaise.”
Mr. Emery said completion
of the Hudson River Park,
which officially was created in
1998 but has never been fully
built, will cost at least $200
million. The governor’s office
declined to comment on cost.
Mr. Diller, in a statement,
said many people had asked
him not to give up on the Pier
55 project, which had a profound impact on him and his
family. “So, I’m going to make
one last attempt to revive the
plans to build the park, so that
the intended beneficiaries of
our endeavor can fall in love
with Pier 55 in the way all of
us have,” Mr. Diller said.
Diana Taylor, chairwoman
of the Hudson River Park
Trust, which had planned the
project with Mr. Diller’s support, said: “We will work with
all stakeholders to figure out a
way forward and bring this incredible project to fruition.”
Michael Gruen, president of
the City Club, said his members are satisfied that the estuary will be protected and are
willing to support the project
even if they still don’t like the
way it looks. “If we manage to
get this park completed and
get the funding the park
needs, I think that is fabulous,” he said.
Asbury Park Broadens Appeal With Arts Center Deal
BY CHARLES PASSY
ASBURY PARK, N.J.—The
city that put Bruce Springsteen on the map is looking to
expand beyond rock ’n’ roll.
Madison Marquette, the
real-estate company behind
the redevelopment of Asbury
Park’s boardwalk, is working
with the Newark-based New
Jersey Performing Arts Center,
or NJPAC, to bring a broader
range of cultural events to the
seaside destination.
As part of the plan, NJPAC
will present several artists and
shows at two historic boardwalk venues now owned by
Madison
Marquette—the
3,600-capacity
Convention
Hall and the 1,600-seat Paramount Theatre. Already announced are programs with
astrophysicist Neil deGrasse
Tyson (Dec. 15 at Convention
Hall) and comedian Paula
Poundstone (March 24 at Paramount Theatre).
In the 1960s and ’70s, Asbury Park emerged as a destination for budding rock musicians. Mr. Springsteen got his
start in local clubs—most notably, the Stone Pony. He
named his debut album “Greet-
ings from Asbury Park, N.J.”
In recent years, the city has
reclaimed some of its former
glory—not only in terms of its
music scene, but also as a funin-the-sun locale. New condos
have gone up, with prices topping $750,000 for some units.
A new 110-room hotel, called
the Asbury, opened last year.
The partnership with NJPAC is aimed at building upon
that recent success, said Madison Marquette project director
George H. Ladyman Jr. The
idea is to not only show that
Asbury Park can be about
more than rock ’n’ roll, but to
also grow the city’s events calendar well beyond the summer. “We’re a 12-month destination,” said Mr. Ladyman.
Madison Marquette will
share in the costs and profits
cellini moonphase
rolex
and cellini
are ® trademarks.
for shows with NJPAC, said
Mr. Ladyman. He declined to
provide specific dollar figures
or percentages, saying the
partnership is on a show-byshow basis.
Mr. Ladyman also indicated
that the revenue from the
shows wasn’t necessarily as
important as boosting the
boardwalk’s overall business
and image.
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A10B | Thursday, October 26, 2017
NY
* *
THE WALL STREET JOURNAL.
GREATER NEW YORK
Trust
Jersey City Condo Joins Space Race Land
To Offer
The 79-story tower
would rank among
the nation’s tallest
residential buildings
Affordable
Housing
BY LAURA KUSISTO
A sleek limestone and glass
tower soon will soar nearly
900 feet into the skyline with
broad views of New York Harbor and the Statue of Liberty.
This latest venture isn’t in
Manhattan—it is in downtown
Jersey
City,
PROPERTY where its developers hope to
create a fresh
brand and set a new standard
for luxury and amenities.
The tower, known as 99
Hudson, is part of a push by
Chinese developers to enter
the local condominium market
in a big way, setting the stage
for expansion into other major
markets.
The building, a block from
the waterfront, would be the
tallest in New Jersey. The 781
condo apartments went on the
market in the past few weeks.
Now a 16-story frame of concrete and steel, it is due to
open in 2019.
The total sellout of condos
at the 79-story tower will total
slightly more than $1 billion,
said Martin Brady, executive
vice president of the Marketing
Directors, which is listing the
apartments in the U.S.
Prices start at $889,000 for
one-bedroom units and $1.5
million for two bedrooms.
At 887 feet tall, 99 Hudson
would be the sixth-tallest residential building in the U.S. if it
were open today. There are 11
taller towers under construction, mostly in New York City,
but also in Chicago and San
Francisco, according to data
from the Council on Tall Buildings and Urban Habitat.
Condo development has
lagged in Jersey City since the
2008 financial crisis, even as a
forest of tall rental buildings
came on the market, and Jersey City developed a reputation
as a center for arts, culture and
business. Asking prices at 99
Hudson average about $1,400 a
square foot, about 64% of the
average price a square foot in
Manhattan, brokers said.
But 99 Hudson, about a
four-minute ride on the PATH
train to the World Trade Center, has one unbeatable advantage over most Manhattan towers: a vast open view of the
Manhattan skyline. It sits directly across from the World
Trade Center and views extend
from Midtown to the Statue of
Liberty and Liberty State Park
in New Jersey.
Cindy Xu, president of
China Overseas America Inc.,
said the building’s residents
“will have unparalleled views
of the Manhattan skyline,
while enjoying the luxury lifestyle and amenities of a pre-
New York City has long
struggled with how to help
lower-income families buy
homes as real-estate prices
climb further out of reach.
A coalition of housing groups
has unveiled plans for a new
community land trust that they
say could offer a new model for
how the city addresses low-income homeownership.
One key feature: The land
trust will retain ownership of
the land under the homes and
control how much the homes
are resold for, preserving affordability for generations to come.
Community land trusts are
still in their infancy in major
cities, and it remains to be
seen how effectively a nonprofit can compete to buy
land, especially in a place like
New York City where many
land deals are closed quickly
and in cash.
The creators of the New
York land trust said it could
generate 250 units over the
next couple of years, which
would make it one of the largest in the U.S., according to
Melora Hiller, chief executive of
Grounded Solutions Network,
which works with community
land trusts across the country.
In the wake of the foreclosure crisis, many places
shifted focus away from promoting low-income homeownership after that became a
path to financial ruin for many
during the era of easy mortgages. Roughly two-thirds of
New Yorkers rent.
But as real-estate prices
have climbed, housing groups
said they began to search for
alternatives that would give
people more control over their
living situation.
“Coming out of the foreclosure crisis, we spent a lot of
time and still do spend a lot of
time figuring out how to keep
homeowners in their homes.
We started seeing that there
was very little daylight between recovery and gentrification,” said Christie Peale, executive director of the Center for
NYC Neighborhoods, one of
the organizations behind the
creation of the trust, dubbed
CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL; CHINA OVERSEAS AMERICA INC. (RENDERING)
BY JOSH BARBANEL
The 99 Hudson residential tower, under construction above and seen in a rendering below, would be the tallest building in New Jersey.
Chinese Companies
Expand Their Reach
Large-scale condominium
development is returning to
Jersey City, in large part
through the efforts of two separate subsidiaries of the same
Chinese-government-owned enterprise.
Both subsidiaries were looking to hone their reputations
and develop their skills as they
move into more highly competitive condo markets in places
such as New York City.
In July, Strategic Capital put
a condo project known as Park
and Shore in the Newport section of Jersey City on the market. The development includes
two separate buildings, 75 Park
Lane and Shore House, that will
share amenities.
Strategic Capital is an investment and development
company owned by China Con-
struction America, which in turn
is owned by China State Construction Engineering Corp. Ltd.,
a Chinese government-owned
conglomerate.
Nearly 20% of the 180 sales
at Park and Shore so far have
been to Chinese buyers, said
Jacqueline Urgo, president of
the Marketing Directors, which
is overseeing U.S. sales.
It is competing against another subsidiary of China State
Construction, China Overseas
America, which is building 99
Hudson. The building’s prices
are pegged to be the highest in
Jersey City. Sales were simultaneously launched this month in
Jersey City and China.
Both China State Construction subsidiaries are looking to
expand further, though in August China announced curbs to
limit the outflow of corporate
investment in property, among
other sectors.
Cindy Xu, president of China
Overseas America, declined to
discuss limitations on capital
outflow. She confirmed that 99
Hudson is being built without a
conventional mortgage.
“Whether to pay cash or arrange for loans is affected by
various factors, such as the finance-modeling methods, the
strategic concerns and the overall environment,” she said.
Nine years ago, large-scale
condo development fell out of
favor in Jersey City, as the financial crisis of 2008 left a
large overhang of unsold units.
That is now turning around,
with at least four new developments on the market since last
year. The two projects by the
Chinese-owned companies are
the largest.
Both 99 Hudson and Park
and Shore are being built by
Plaza Construction, a Manhattan-based construction management, consulting and contracting firm that was purchased by
a China State Construction subsidiary in 2013.
mier residential property.”
The building will soar above
the massive 42-story Goldman
Sachs Tower about a block
away, which at 781 feet currently is the tallest building in
New Jersey.
The angled tower is rising at
the eastern, Manhattan-facing
edge of a block-square site that
formerly was a parking lot between Hudson and Greene
streets, a short walk from the
Exchange Place PATH station.
It has several angled glass
walls on each side to give more
units Manhattan views.
China Overseas America
purchased the site from Hartz
Mountain Industries for $68
million in 2013. Hartz had
bought it two years earlier for
$35 million.
The building is clad in floorto-ceiling glass and vertical
columns of limestone that soar
up the face.
The tower stands on a
seven-story base that covers an
entire square block. It has
ground-floor retail, parking
spaces that are being sold with
condos and wall of studios on
Greene Street, facing away
from Manhattan. The roof of
this base is a playground with
an irregularly shaped 80by-50-foot outdoor pool, a
lawn, fire pits, barbecues and
cabanas.
Inside, there will be a spa
with hot tub, steam room,
sauna, fitness area, poker
rooms, a business center and
golf simulators.
China Overseas America is a
U.S. subsidiary of China Overseas Holdings Ltd., which in
turn is a subsidiary of the
China State Construction Engineering Corp. Ltd., a Chinese
government-owned enterprise.
Ms. Xu said sales at 99 Hudson were launched on-site si-
multaneously by a team from
the Marketing Directors, a New
York-based marketing company, and a China State Construction unit in China. She
noted that many potential Chinese buyers have children
working or studying in the U.S.
“We have built up a large
and solid base of loyal customers who follow us to anywhere
in the world,” Ms. Xu said.
She said her subsidiary is
looking to expand beyond Jersey City because overseas markets remain part of her company’s
“sustainable
development strategy.”
GREATER NEW YORK WATCH
NEW YORK CITY
Two city building inspectors
and an asbestos investigator
were among 14 people charged
Wednesday in three construction
schemes involving bribery and
corruption, authorities said.
Officials said the two-year
probe by the city Department of
Investigation and the Brooklyn
district attorney’s office revealed
construction corruption thought
to be widespread in the city.
Other defendants included
property owners and developers.
There were no injuries reported
from the alleged schemes.
—Zolan Kanno-Youngs
TRANSIT
MTA Votes to Ban
Subway Alcohol Ads
ROBERTO COIN BOUTIQUE
Westfield World Trade Center
Oculus | Main Level C2
New York, NY | 212.287.1299
POIS MOI COLLECTION | robertocoin.com
Bye-bye, beer and booze ads
on the subway. The board of the
Metropolitan Transportation Authority approved a measure
Wednesday that bans beer, wine
and spirits advertising on any
MTA property.
The measure prohibits any
new contracts for alcohol ads
immediately, but allows for existing contracts to continue until
the end of the calendar year.
Some 30 major cities have already banned alcohol ads on
transportation systems, and New
York City banned tobacco ads
from its system decades ago.
—Melanie Grayce West
SETH WENIG/ASSOCIATED PRESS
Inspectors Charged
In Construction Probe
Investigators converged on a marshy area in a Freeport, N.Y.,
park following the discovery of suspected human remains.
OPIOID CRISIS
LONG ISLAND
App Lets Public Send Park Search Yields
Tips on Drug Crimes Apparent Remains
A New Jersey prosecutor is
turning to an app to fight his
county’s opioid epidemic. Residents of Somerset County can
use their smartphones to anonymously text tips on opioid-related crimes to the office of the
prosecutor, Michael H. Robertson.
Mr. Robertson said he hopes
the STOPit app will encourage
tech-savvy people who are less
likely to call a police hotline and
those uncomfortable speaking to
law enforcement to come forward with information about
dealers and overdoses. “Our intention with this is basically to
use it almost like a neighborhood watch on steroids,” he said.
—Zolan Kanno-Youngs
The FBI says its gang task
force has found apparent human
remains in a Long Island park
nearly a week after the body of
a 16-year-old boy was found in a
neighboring community.
An FBI spokeswoman said
the suspected remains were
found Wednesday in Cow
Meadow Park & Preserve in
Freeport. On Oct. 19, investigators discovered the body of 16year-old Angel Soler in woodlands in Roosevelt. Authorities
haven’t commented on whether
either case is linked to the
MS-13 street gang, which is
blamed for 22 killings on Long
Island since January 2016.
—Associated Press
‘We feel that we have
to act now and
acquire land at a
cheap price.’
the Interboro Community
Land Trust.
There is a growing body of
evidence that homeowners fare
better financially than renters
over time. The median net
worth of homeowners increased
by 15% between 2013 and 2016,
while the incomes of renters or
other non-homeowners fell 5%
during the same period, according to a September report by
the Federal Reserve.
“Whatever savings they
could have put together for a
deposit on a home or an
apartment is being exhausted
by rising rental costs,” said
Bob Annibale, global director
of Citi Community Development and Inclusive Finance,
which has contributed $1.2
million toward the Interboro
Community Land Trust.
As the owner of the land,
the trust then has the ability
to restrict the price at which
owners can resell their units,
keeping them below market
rate in perpetuity. This differs
from many of the current
models for affordable homeownership, where regulatory
agreements that keep homes
or apartments affordable often
expire after a couple of decades, freeing the owners up
to sell their homes at market
rates and potentially turn a
substantial profit.
Ms. Peale said the trust is
likely to focus on areas like
southeast Queens, the Bronx
and southeast Brooklyn and to
include a significant component of single-family homes,
as well as co-op apartment
buildings. Many of the homes
will be affordable to those
making 80% of New York’s median income, or just over
$76,000 for a family of four.
“We feel that we have to
act now and acquire land at a
cheap price,” Ms. Peale said.
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
Thursday, October 26, 2017 | A11
Staying Connected
At 10,000 Feet
Airlines are at various stages of
upgrading in-flight Wi-Fi. Some
have as many as four different
kinds of service. Here’s a look at
who offers what for large-plane
mainline flights (excluding
regional flights):
American:
Wide-body international fleet
has satellite connections in 129 of 150 aircraft. Domestic fleet mostly
ground-based service. First narrowbody satellite-equipped plane starts
flying Nov. 29. Upgrades won’t be
completed until end of 2019.
Delta: International planes have
satellite connections. Domestic
narrow-body conversion to satellite up to 238 of 700 planes.
A319s and 737-800s have it.
Working on A320s now.
FROM TOP: GETTY IMAGES/ISTOCKPHOTO; GOGO
United: Entire fleet has satellitebased service except for 15 Boeing 757s. Some 737s have coverage limited to continental U.S.
Southwest: Entire fleet has
satellite service. In the process of
upgrade that delivers speeds
three to four times faster than
original.
THE MIDDLE SEAT | By Scott McCartney
Cut Through the Confusion
Of In-Flight Wi-Fi
TRAVELERS USED TO struggle
to figure out if their flight was going to have Wi-Fi. Now the question is whether they’ll have Wi-Fi
that works.
Wi-Fi has grown from a milehigh luxury to an essential amenity
for many travelers. Internet connections are more important than
food in airline surveys. Alaska Airlines says Wi-Fi reliability is the
No. 1 topic of conversation among
its most loyal customers. “There
are certain things people view they
need while in a metal tube, and
Wi-Fi is one of them,’’ Alaska
spokeswoman Bobbie Egan says.
But with more passengers trying to log in and each using more
data, systems that connect to
ground antennas get overwhelmed
on many flights. Frequent travelers sometimes call Gogo, the leading air-to-ground service, Slowgo
or Nogo.
“Sometimes the service is
spotty or I get kicked off. You get
frustrated and sometimes just bag
it,” says Hemant Pathak, an attorney based in Washington, D.C.,
who travels frequently to Seattle
and other West Coast cities.
Airlines are rushing to upgrade
to satellite-based Wi-Fi systems
that can route much larger
amounts of data much faster. With
satellite-based Wi-Fi, you can log
in from gate to gate instead of
waiting until the plane climbs
above 10,000 feet, and you can
stream live TV and movies.
Workers install a Gogo 2Ku satellite antenna on an aircraft. Airlines are
upgrading to satellite-based internet connections.
Not all carriers have it. Some
airlines have it on some of their
planes, but not others. Some satellite systems have been upgraded
to deliver speeds three to four
times faster than early satellite
systems. Others await an upgrade.
And airlines make it difficult to
sort the slow from the speedy—
there’s rarely much information
about what Wi-Fi you’ll get until
you step onboard.
Gogo has four flavors of Wi-Fi
onboard airliners right now—two
versions of ground-based systems,
plus an original satellite system
and a version with a new modem
that handles far more data each
second, known as 2Ku. The differ-
ent versions range in speed from
receiving 3 megabits per second
for the entire plane to 100 Mbps
per second. That’s a huge difference if you have 30 or 40 passengers all on at the same time.
When the small-capacity systems get overwhelmed, problems
can worsen when flight crews intervene. “Sometimes people mistake degraded service for not
working and flight attendants reboot the system,” kicking all users
off, says Anand Chari, Gogo’s chief
technical officer.
One side benefit to upgrading so
many planes: Congestion on the
ground-based antenna network will
decrease, says John Wade, Gogo’s
chief operating officer. “Technology
has caught up with passenger expectations,” Mr. Wade says.
Delta flies all four Gogo varieties and is quickly upgrading,
sometimes installing satellite
equipment on two planes a night
at its Detroit hub. All of Delta’s
long-haul wide-body fleet has satellite service, and 238 of about
700 mainline narrow-body jets
have been upgraded to Gogo’s satellite service as of Oct. 20.
Delta is upgrading each aircraft
type together so savvy customers
will know which flights have better Wi-Fi. By the middle of 2018,
Delta says it will have satellite WiFi service on all its domestic
flights longer than 1,500 miles.
Like all U.S. airlines, regional partners will stick with ground-based
systems. With fewer passengers
onboard, airlines say ground-based
works better on smaller planes,
and satellite antennas that get installed on top of planes don’t fit
on narrow regional jets.
“The reality is not every product
will ever be the same when you operate as large a fleet as we do,”
says Andrew Wingrove, Delta’s
managing director of product strategy and customer experience.
Delta is sending an email before
travel to passengers who will get
satellite service. Satellite-equipped
planes have different signs at airplane doors and flight attendants
announce the upgraded service.
Delta is working on distinguishing
Alaska: Ground-based Wi-Fi service. Upgrade to satellite service
starts next year, with completion
in 2020. Virgin America has 53
air-to-ground planes and 12 satellite-equipped planes.
JetBlue: Entire fleet has satellitebased service, offered free. Coverage only over the contiguous U.S.
between upgraded Wi-Fi and
ground-based when customers
book flights, Mr. Wingrove says.
Like reliability, pricing can vary
significantly with in-flight Wi-Fi.
Several airlines have recently begun to offer free text messaging
in-flight. JetBlue offers free full
satellite Wi-Fi with live television.
Southwest charges $8 a day for
satellite-based internet access, but
live TV is free. Other airlines typically charge $12 to $28 a day for
internet access. Some offer
monthly passes at around $50, or
discounts if you pre-purchase WiFi when you book.
“You can pay a bunch and get
very little,” says Ed Pizzarello, a
Reston, Va.-based venture capitalist who blogs about frequent-flier
programs and travel.
United was slow to offer Wi-Fi
years back because it decided from
the start to install satellite service.
Now the airline crows that it made
the right decision. Besides the increased speed and capacity, satellite service allows connections
over most areas on long international flights.
Yet United ended up with a mix,
too. United has 15 Boeing 757s
used on transcontinental flights
that have ground-based service. So
does all of its two-cabin regionaljet fleet. And one of United’s satellite-service providers offers connections only over the continental
U.S. So a 737 flying to Central
America or other destinations outside the lower 48 states would
lose service for much of the trip.
“It’s something we are eager to
improve,” says Tarek Abdel-Halim,
United’s managing director of onboard products.
MUSIC
BY NEIL SHAH
SOME OF THE MUSIC industry’s
biggest players are betting that a
new sound is ready to catch on.
It’s called classic rock.
The genre is being reinvented by
young musicians, some of whom
are barely out of high school, who
are channeling bands their mothers and fathers grew up with.
Greta Van Fleet is a rarity in today’s music business: An old-fashioned rock band that could, some
music executives say, break into
the pop world.
The Frankenmuth, Mich., group
is made up of 21-year-old twins
Jake Kiszka, the band’s guitarist,
and Josh Kiszka, its singer; their
brother and bassist Sam Kiszka, 18;
and drummer Danny Wagner, 18.
Greta Van Fleet’s debut EP, “Black
Smoke Rising,” which features
Josh’s Robert Plant-like howl and
Jake’s guitar hooks, opened at No. 1
on Apple’s iTunes rock chart. “Highway Tune,” their single, recently
topped Billboard’s mainstream rock
radio chart for five weeks. Despite
having just four songs, Greta Van
Fleet is selling out clubs like New
York City’s Bowery Ballroom.
Championing them are two of the
industry’s most powerful names:
Marc Geiger, head of music at talent
agency WME, which represents
Adele, Foo Fighters and Kendrick
Lamar, and Lava Records executive
Jason Flom, who helped launch
Lorde, Katy Perry and Kid Rock.
The band is releasing a “doubleEP” on Nov. 10 that will include
“Black Smoke Rising” and four
new tracks—two originals and two
covers. “Black Smoke Rising”
showed the band’s knack for
catchy, tightly-crafted songs but
was also criticized by some fans as
derivative of Led Zeppelin. The
new songs, including a cover of
soul singer Sam Cooke’s “A Change
Is Gonna Come,” aim to prove the
band isn’t a Zeppelin clone by
showing its other musical influences, Sam Kiszka says.
The band’s ascent is reviving a
question pondered by industry executives ever since hip-hop took
over America’s youth culture: For
younger music fans who see Led
Zeppelin, Guns N’ Roses, and Nirvana as the distant past, can “classic rock” be new again?
“There’s a theory that rock
needs one new band showing up
and getting people to talk about
rock again,” says Eddie Trunk, a
longtime rock personality who
hosts a daily radio show on SiriusXM’s “Volume” channel. “Could
this be that band?”
“We grew up listening to blues
and soul,” not classic rock, says
Josh Kiszka. The Kiszka brothers’
father is a blues musician with an
Please see ROCK page A12
MATT ROTH FOR THE WALL STREET JOURNAL
THIS IS NOT YOUR
FATHER’S ROCK BAND
Greta Van Fleet, a group of teenagers who recently finished high school, are
winning listeners and attention with their modern take on rock ‘n’ roll.
THE WALL STREET JOURNAL.
A12 | Thursday, October 26, 2017
LIFE & ARTS
CLOCKWISE FROM TOP LEFT: NETFLIX; JACKSON LEE DAVIS/NETFLIX (3)
Vintage cameras, above, and arcade
games, below, for ‘Stranger Things 2,’
by directors Ross Duffer (left, inset)
and Matt Duffer (right, inset).
In the series, from left, Noah Schnapp, FInn Wolfhard, Gaten Matarazzo and Caleb McLaughlln play suburban middle-school students who encounter monsters.
STREAMING SERIES
The ’80s of ‘Stranger Things’
How the hit Netflix series recreates an ‘awesome’ era without going over the top
BY JOHN JURGENSEN
IN “STRANGER THINGS 2,” the
second season of Netflix’s sci-fi
horror hit set in the 1980s, certain
props catch the eye like cameos by
stars of that decade: a ReaganBush ’84 campaign sign, a bulky
camcorder, an E.T. figurine and a
fat Madrid brand skateboard.
For the show’s production designer, Chris Trujillo, it wasn’t
hard to find vintage action figures,
boxy cars and other emblems of
the era. The challenge was to
avoid distracting viewers with an
overdose of retro accessories.
“It was a constant censoring,”
says Mr. Trujillo, who received an
Emmy nomination for the production design in season 1. Often his
team resisted the urge to load sets
with lamps or wallpaper that were
too “awesome and bizarrely ‘80s”
for fear they’d steal the scene. “It’s
a lot harder to have that self-control than you’d think,” he says.
“Stranger Things” is about a
group of middle-school students
who confront monsters spilling
into their suburban world from another dimension. When it premiered last year, the series trans-
ported viewers to 1983 with period
references such as Steven Spielberg movies, the synthesizer music
of horror master John Carpenter
and even the title font of “Choose
Your Own Adventure” books.
Twin brothers Matt and Ross
Duffer, the show’s 33-year-old
writers and directors, created a
story about four boys who team up
with a girl with telekinetic powers
who escapes from a secret research facility. The plot mirrors
the Cold War paranoia and Dungeons & Dragons games that the
characters are immersed in.
“When the real world starts to
reflect the kids’ fantasy pop-culture world, it all feels oddly kind
of seamless,” says Mr. Trujillo,
who met the Duffers before Netflix
picked up “Stranger Things.” “All
the things that influenced us to
make the show are very present in
the world of the show.”
As a flashback to a time when
unsupervised kids
roamed on BMX
bikes, the show
gave a cross-generational audience a respite
from today’s hyper-connectivity.
With scant pre-release promotion and
press coverage, the
show’s popularity spread
gradually by word of mouth,
another seeming throwback.
Hype surrounding “Stranger
Things” and its sequel season have
since gone into overdrive, and
cheeky Netflix marketing has reveled in ‘80s touchstones. A Super
Bowl ad announcing season 2 incorporated a vintage Eggo waffle
commercial. Posters paid homage
to old movies like “Firestarter.” A
“Stranger Things” app borrowed
the look of vintage Nintendo games.
Mr. Trujillo acknowledges the
risk of the show becoming a victim
of its own nostalgic style, but he
says season 2 has the substance to
back it up. In early reviews, many
TV critics seem to agree, though
some note that it takes awhile for
the show to get back up to speed.
Many sets from season 1 re-
main, but other facets got an update for 1984, such as the Ghostbusters gear the boys sport for
Halloween. The ‘80s props and
costumes offered by Hollywood
rental houses tend to be a little
too “on the nose,” Mr. Trujillo
says. So the production designer
and his team, including art director Sean Brennan, prop master
Lynda Reiss and set decorator
Jess Royal, made many acquisitions in the Atlanta area where
the series was shot.
Mr. Trujillo, who was born in
1981 and raised in Tampa, Fla., describes “estate sale-ing” in Atlanta
suburbs lined with mid-century
duplex and colonial homes identical to the ones inhabited by
“Stranger Things” characters. They
sought out houses that hadn’t
been renovated. In some of these
time capsules, everything was for
sale, down to the contents of the
kitchen junk drawer. The popularity of “Stranger Things” sometimes helped the production
team gain early access to
estate sales.
For every famous
“Star Wars” toy
that appears in
“Stranger Things,”
there are many
more obscure
tchotchkes, such
as the wooden napkin holder on one
family’s kitchen table.
Those, along with holdover decor from the ‘60s
and ‘70s, helped give sets a
more authentic “life layer,” Mr.
Trujillo says.
In some cases, however, the designers and the Duffer Brothers
gave themselves permission to go
full tilt. The first episode involves
scenes set in the ultimate symbol
of 1984: a video-game arcade.
Rather than replicate it inside a
studio, they built one in a former
laundromat in an Atlanta-area
strip mall that had gone to seed.
They loaded it with neon lights, a
disco ball and games such as
Dragon’s Lair and Dig Dug.
Reincarnating the arcade was an
opportunity “to go over the top
while still staying true to that
world,” Mr. Trujillo says, “because
they were just ridiculously overdesigned spaces.”
Continued from page A11
extensive record collection,
their grandfather, an accordion-player on the polka
scene. Jake Kiszka first got
into classic acts like Jimi
Hendrix and Eric Clapton
and the band followed. The
group took its name from an
86-year-old Frankenmuth
musician, Gretna Van Fleet,
who plays the dulcimer. “It’s
a little piece of home that
we can travel with,” Josh
Kiszka says.
It isn’t just Greta Van Fleet
giving classic, guitar-driven
rock a modern twist. Tyler
Bryant & the Shakedown are
playing to bigger crowds, recently opening shows for AC/
DC and Guns N’ Roses. The
band’s new album, due Nov.
3, features tighter, punchier
songs—a decision it made after playing a 25,000-capacity
venue with AC/DC and realiz-
L-R: MATT ROTH FOR THE WALL STREET JOURNAL; PAUL MORIGI/GETTY IMAGES
ROCK
Greta Van Fleet: from left, band manager Aaron Frank, singer Josh Kiszka, guitarist Jake Kiszka and drummer Danny Wagner. Above right, Luke Spiller of the Struts.
ing they needed biggersounding material.
The Struts, whose singer
Luke Spiller channels Queen’s
Freddie Mercury, delivers
‘70s-style rock with singa-
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long choruses; they’re touring with Foo Fighters. “From
Day One, our ambition has
always been to compete with
the biggest pop or hip-hop
acts,” Mr. Spiller says.
No one thinks it will be
easy for 20-somethings
playing classic rock music
to achieve a level of stardom on par with Drake or
Taylor Swift.
Today, streaming services mint stars, not radio
stations. But rock fans
don’t stream nearly as
much as hip-hop fans do:
Greta Van Fleet’s “Highway
Tune,” for example, has under 7 million streams on
Spotify compared with female rapper Cardi B’s recent hit “Bodak Yellow
(Money Moves)” with 146
million. Talented, upstart
musicians who in previous
eras might have tried to be
rock stars have embraced
rap, says David Jacobs, a
music-industry lawyer.
Meanwhile, the few recent
bands to explode, like Imag-
ine Dragons and Twenty
One Pilots, are considered
pop as much as rock. Many
of rock’s most critically acclaimed new names are indie-oriented or female acts
such as The War on Drugs
and Courtney Barnett.
What separates Greta Van
Fleet, Mr. Trunk says, is the
considerable promotional
machinery behind them.
With their retro sound,
youthful energy and good
looks, Greta Van Fleet could
appeal to three key demographics, Mr. Flom says:
Older “classic-rock Dads”
who tune into rock radio
shows and attend classicrock concerts; younger male
fans curious about 1960s
and 1970s rock, soul and
funk; and young women
who, in the past, have
helped mainstream rock
bands become pop stars.
Greta Van Fleet’s rise to
stardom started when tour
manager Mike Barbee discovered them at a cookout
in Frankenmuth in Septem-
ber 2012. He courted the
Kiszka boys’ parents for
months. As his charges
gained local notoriety, he reluctantly agreed to hand
them to a more experienced
manager—Aaron Frank,
whose family runs a major
U.S. concert promotion company—a move that led to
WME’s Mr. Geiger and eventually, Mr. Flom.
For Mr. Flom, who signed
‘80s rock bands like Zebra,
Twisted Sister and Skid
Row, Greta Van Fleet represents a return to his rock
roots. Mr. Flom took Greta
Van Fleet’s song “Highway
Tune” to David Dorn, senior
director of Apple Music, who
helped it onto the streaming
services’ playlists, where the
song immediately gained
traction. In April, Apple Music named Greta Van Fleet a
“new artist of the week.”
Greta Van Fleet’s backers
are having them play
smaller venues to hone their
chops even if they can get
booked in bigger ones. “You
need to give people the, ‘I
saw them at the Troubadour,’ ” Mr. Geiger says.
Minutes before a packed
show earlier this month at
Baltimore’s Ottobar club, the
band drank beers and hung
out with Mr. Flom in a small
green room as Mr. Flom
made jokes about infamous
“tour riders” from pop-music
history. Josh took sips of
whiskey from a plastic cup.
They performed an hour-long
set full of songs the crowd—a
mix of 30- and 40-somethings and younger fans—
had never heard before.
During soundcheck hours
before, guitarist Jake Kiszka
briefly played “Mary Jane’s
Last Dance,” by Tom Petty,
who had died the day before. With so many of rock’s
pioneers dying, Greta Van
Fleet’s music provides a reassuring continuity, music
executives say. “What’s going to happen when all of
that [classic rock] is gone?”
Jake Kiszka says. “What is
going to fill that void?”
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.
Thursday, October 26, 2017 | A13
LIFE & ARTS
AN APPRECIATION | By Jim Fusilli
Ambassador for the Big Easy
Fats Domino, who died Tuesday, showed his love for New Orleans in his music, bringing the city’s vibrancy into listeners’ homes
performed now and then, particularly at the New Orleans Jazz and
Heritage Festival, Mr. Domino
faded into the backdrop, though
his singles retained their power to
spark joy.
When Hurricane Katrina struck
New Orleans in 2005, Mr. Domino
was determined to ride out the
storm, but when the levees broke,
his home was flooded. Mr. Domino; his wife, Rosemary; and other
family members retreated to an
upper floor and were rescued by
Harbor Police. Someone who
hadn’t heard he had been spared
spray-painted “R.I.P. Fats You Will
Be Missed” on the front of his
white-brick house.
Mr. Domino’s survival was
greeted with relief and a measure
of joy amid the shock and sorrow
following the storm. The National
Medal of Arts he was awarded by
President Bill Clinton was lost in
the flood, but President George W.
Bush traveled to New Orleans to
greet Mr. Domino and replace the
medallion. Musicians honored him,
notably at a 2007 tribute concert at
the New Orleans House of Blues
that featured local luminaries Art
Neville, Dr. John, Irma Thomas, Allen Toussaint and members of Mr.
Domino’s band, and with “Goin’
Home: A Tribute to Fats Domino,”
an album featuring versions of his
hits by, among others, Elton John,
Norah Jones, B.B. King, Willie Nelson, Randy Newman, Robert Plant
and various artists from New Orleans. Mr. Domino performed sporadically, and in 2012 made a
cameo appearance in the HBO series “Treme,” singing a muted but
touching version of “Blueberry
Hill.”
Thus, some five decades after
his last smash hit, Mr. Domino’s
re-emergence confirmed that he
still had a hold on the affection
and admiration of music fans.
EVERETT COLLECTION
FATS DOMINO BROUGHT the
sound of New Orleans into the
homes of millions of American
teenagers during the 1950s with
his brand of rollicking R&B and
boogie-woogie-tinted piano playing; his sweet growl of a voice, often conveyed with an accent that
reflected his Lower Ninth Ward
roots; and his ample charm and
charisma. When he sang “Yes, it’s
me and I’m in love again” to open
his 1956 hit “I’m in Love Again,”
the line came across like a cheery
pronouncement from an old friend.
Antoine “Fats” Domino died Tuesday night at his home in Harvey,
La. He was 89.
Most of Mr. Domino’s familiar
crossover hits in the late 1950s
were written and arranged with
Dave Bartholomew, who produced
“Ain’t That a Shame,” “I’m in Love
Again,” “Blue Monday,” “I’m
Walkin’,” “Whole Lotta Lovin’” and
“I Want to Walk You Home” as
well as “Blueberry Hill,” a bigband-era number that the two men
whipped into an international rock
’n’ roll favorite. Each of those singles was in the top 10 on Billboard
magazine’s hit-singles chart that
measured overall sales and radio
play. Mr. Domino did even better
among African-American music
consumers: With the exception of
“Whole Lotta Lovin’,” which
peaked at No. 2, every one of
those hits reached the top of Billboard’s R&B singles chart.
The son of a French Creole violinist, Mr. Domino was born in
New Orleans. His brother-in-law,
Harrison Verrett, taught him to
play piano; a banjoist, Verrett
worked with New Orleans legends
Kid Ory and Papa Celestin. In 1947,
the 19-year-old Mr. Domino joined
the Solid Senders, a local combo
led by Billy Diamond. It’s said that
Diamond dubbed the portly Domino “Fats” because he reminded
him of great pianists Fats Waller
and Fats Pichon. Thus it was fitting that Mr. Domino’s first brush
with national recognition came in
1949 with “The Fat Man,” which is
Fats Domino (1928-2017) in ‘Jamboree’ (1957). His hits included ‘Blue Monday,’ ‘Whole Lotta Lovin’ ’ and ‘Blueberry Hill.’
said to be the first rock ’n’ roll single to sell in excess of a million
copies. Six years later, he had his
first top 10 crossover hit with
“Ain’t That a Shame.” His version
might have done even better if Pat
Boone, a white pop singer, hadn’t
released a tepid version aimed at
the mainstream.
In 1963, Mr. Domino’s relationship with Imperial Records, for
whom he recorded his many hits,
ended when the label was sold. In
what now seems a wrong-headed
plan, his new label instructed Mr.
Domino to record in Nashville
without Mr. Bartholomew. He continued to work, but his peak pe-
riod had ended. By 1980, he decided to stop touring and remain
in his beloved New Orleans. An influence on Elvis Presley and the
Beatles, in 1986 he was among the
10 inaugural inductees to the Rock
’n’ Roll Hall of Fame and a year
later received a Grammy Lifetime
Achievement Award. Though he
Mr. Fusilli is the Journal’s rock
and pop music critic. Email him at
jfusilli@wsj.com and follow him on
Twitter @wsjrock.
WSJ TALK / E XPE RIE NCE / OFFER / GE TAWAY
Atlantic Theater Company Production, photograph by Ahron R. Foster
WSJ
Masterpiece:
‘The Band’s
Visit’
Join us as we welcome back our Masterpiece event series,
with mezzanine and orchestra level seats to Broadway’s hit
musical “The Band’s Visit.” After the play, WSJ Drama Critic
Terry Teachout will take you behind the scenes for a private
discussion with the show’s award-winning director, David
Cromer, and cast members.
WHERE: NEW YORK
WHEN: DECEMBER 13, 2017
E XCLUSIVE TO WSJ MEMBER S
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THE WALL STREET JOURNAL.
A14 | Thursday, October 26, 2017
SPORTS
WORLD SERIES
How Jose Altuve Makes His Size Work
The 5-foot-6 Astros star has become one of the best hitters in baseball by punishing the pitchers that throw the hardest
BY BRIAN COSTA
RONALD MARTINEZ/GETTY IMAGES
THERE IS ARGUABLY no harder
task in sports than hitting a majorleague fastball. That’s especially
true for the fastest of fastballs,
many of which now exceed 100
mph. Yet the player who excels at
this more than any other isn’t
some towering slugger. At first
glance, he looks more like a Little
Leaguer.
Jose Altuve, the 5-foot-6 star
second baseman for the Houston
Astros, has become one of the best
hitters in baseball by punishing
the pitchers that throw the hardest. He is batting .433 on pitches
clocked at 94 mph and above this
season, including the playoffs, the
highest mark among qualified hitters.
For years, his diminutive
height—which puts him among the
shortest MLB players on record—
has been talked about as a disadvantage that he has somehow managed to overcome. But amid
Houston’s run to the World Series,
this aspect of Altuve’s brilliance
raises another possibility: His pintsized frame may actually work to
his benefit.
With such a short-lever swing,
he can get the barrel onto the ball
much faster than the average hitter, a critical advantage when milliseconds are at a premium.
“He’s not real tall, so his arms
are a little shorter and he’s able to
get to a lot of pitches,” Astros hitting coach Dave Hudgens said. “It’s
not a disadvantage for him.”
Altuve’s bat is like his physique:
short and stocky. He uses a 33-inch
Victus-made bat, about an inch
shorter than the typical length,
with a thinner handle and thicker
barrel than many other bats.
Jared Smith, a Victus cofounder, said most players attempting to use such a bat would
shatter it too often, because the
thinner handle is more vulnerable
to breaking. But Altuve’s quickness
to the ball with the barrel allows
him to use the added thump the
thickness gives him without the
downside.
“He’s so short to contact,”
Smith said. “If you watch where
his hands start and the swing path
to contact, it’s amazing.”
The effect is a punchy swing
that is almost as much of an outlier as the 27-year-old Altuve himself. At a time when hitters are
more tolerant than ever of whiffing as they take big swings for the
fences, Altuve strikes out only
about 13% of the time, less often
than all but a dozen players. His
.346 batting average was the highest in the majors during the regular season.
The combination makes him
Astros star Jose Altuve is batting .433 on pitches clocked at 94 mph and above this season, including the playoffs, the highest mark among qualified hitters.
kryptonite for the modern pitcher,
who relies heavily on power in
pursuit of strikeouts.
Consider Altuve’s first at-bat of
the postseason, in which Boston
Red Sox ace Chris Sale needed only
one more strike to strike him out.
Sale challenged him with a 97-mph
fastball. Altuve hit it for a home
run, his first of three in that game.
“He’s able to put the barrel to
the ball better than anybody else
I’ve ever seen,” Astros pitcher Collin McHugh said.
None of this was even remotely
conceivable to the scouts who first
happened upon Altuve as a teenager in Venezuela. At the time, Altuve said he was 5-foot-5 and 145
pounds, 20 pounds lighter than his
current listed weight. Many majorleague teams then had academies
in Venezuela, which had become a
significant source of talent. Only
the Astros offered him a contract,
and it was hardly a show of confidence. He signed in 2006 for a relatively paltry $15,000.
“It was really hard to believe
that a guy like that was going to
make it to the big leagues,” Altuve
said. Even after he signed, he said
he faced skepticism within the organization because of his size.
“They didn’t think I was going to
make it,” he said.
There may be something to the
idea that the hitters best suited to
counter pure strength are the ones
who appear the least physically
imposing.
Hitters listed at 5-foot-9 or
shorter are batting .280 on 94mph-plus pitches this year, 28
points higher than the rest of the
league. That category of pitches
represents the upper tier of velocity, with the average MLB fastball
clocking in at just under 94 mph.
By contrast, New York Yankees
slugger Aaron Judge, a hulking figure at 6-foot-7 and Altuve’s primary competitor for the AL MVP
award, hit just .259 on such
pitches.
Of course, a shorter path to the
ball is not enough by itself. For Altuve, who went 1 for 4 in Hous-
Weather
Edmonton
d
50s
40s
Seattle
Por
P
tl d
Portland
Pierre
30s
Salt Lake
LLaake City
C
City
70s
Denver
Los A
Angeles
Angel
80s
San Diego
Colorado
C
Colorad
Springs
p g
Las
Vegas
V
Vega
100s
Santaa Fe
F
Ph
Phoenix
90s
50s
Anchorage
A
h g
40s
50s
20s
Albany
Ab
h ill
Memphis
phi Nashville
kl h
City
Oklahoma
City
Ft. Worth
D ll
Dallas
Little
L e Rockk
Birmingham
80s
A ti
Austin
Jackson
Jack
Mobile
bil
Atl t
Atlanta
40s
23
t
Boston
50s
70s
t
Houston
New
ew Orleans
San
an Antonio
Orlando
l d
U.S. Forecasts
International
Hi
61
67
95
91
64
56
62
79
97
56
56
Today
Lo W
51 c
55 s
67 pc
77 s
46 pc
49 c
52 pc
54 s
76 s
41 pc
37 pc
Tomorrow
Hi Lo W
58 49 c
72 59 s
93 67 s
90 75 pc
70 49 s
53 46 c
58 45 pc
68 48 r
96 78 s
54 46 s
53 45 s
10
31
11
12
13
28
29
47
48
19
22
25
27
32
33
35
34
36
38
37
39
40
42
43
44
45
50
46
51
Cold
T-storms
52
53
Stationary
Snow
57
58
59
Showers
Flurries
60
61
62
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
63 50 pc
70 45 s
80 63 s
83 73 s
62 51 r
90 78 pc
76 56 s
81 59 c
65 50 c
79 49 s
87 77 pc
66 49 c
74 50 pc
70 48 s
32 28 i
95 78 s
66 50 pc
85 71 pc
95 62 s
72 48 s
89 75 pc
64 52 c
69 56 pc
89 76 t
79 63 t
77 68 pc
67 54 s
54 36 c
55 43 s
54 46 c
68 45 pc
Tomorrow
Hi Lo W
56 42 r
66 43 pc
84 71 pc
83 71 s
64 54 s
90 76 sh
78 57 s
81 47 pc
59 43 s
84 48 s
88 76 pc
78 59 pc
75 48 s
72 48 pc
33 27 sf
94 78 s
62 42 pc
89 75 c
94 61 s
70 53 s
87 77 sh
71 48 s
70 58 s
88 78 c
71 61 sh
78 69 c
69 58 s
56 51 c
57 42 s
53 40 sh
59 38 r
54
55
56
TURNING IN | By Heidi Moretta
Across
1 Memory problem
4 Novak Djokovic’s
homeland
10 Miles away
14 Co. that founded
NBC
15 Does the Bing
thing
16 Sail stretcher
17 Fluids drawn in
an alien’s
prenatal test?
19 Bean on the
moon
20 Home of the
Swift and
Voltaire craters
21 Fremantle fellow
23 Slips of the pen?
25 Tomb raider’s
worry
26 Kin of percussion
caps?
30 Tussle
33 Soda jerk’s
creations
34 Ring count
35 Its nuclear
program is
the subject of
the Joint
Comprehensive
Plan of Action
36 Victors in the
Battle of Dun
Nechtain
37 Shooting match?
38 On behalf of
39 Real cross
40 Fresh
41 Accommodations
for statues of the
Apostles?
44 Fillers of slips
45 Browbeats
49 City between
Milan and
Venice
51 2013 film that
won the Best
Animated
Feature Oscar
52 First-rate
53 Royal in a
mauve sari?
57 Leaves home?
58 Vivacious
quality
59 Combine
60 Cheer
production
61 Dostoyevsky
novel
62 Dumbstruck
reaction
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
9
16
24
Rain
Ice
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.
8
Tampa
Miami
Tomorrow
Hi Lo W
42 29 pc
79 61 pc
65 49 s
90 64 s
67 48 s
60 40 s
68 47 s
85 50 s
49 37 pc
60 40 s
77 53 s
50 27 s
65 44 s
41 22 sn
66 50 s
30
7
21
41
Warm
70s
Today
Hi Lo W
63 32 pc
73 54 s
60 44 pc
93 63 s
52 35 s
62 45 r
67 48 pc
86 51 s
73 43 s
63 37 pc
83 56 s
70 33 s
61 45 pc
56 29 c
60 43 s
6
90s
100+
Jacksonville
Honolulu
l l
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
47 40 r
48 36 r
Atlanta
69 50 s
74 55 s
Austin
84 53 s
65 36 c
Baltimore
59 37 s
65 44 s
Boise
64 40 s
63 40 s
Boston
61 46 sh 62 46 s
Burlington
54 44 r
58 42 pc
Charlotte
64 42 s
72 48 s
Chicago
56 46 pc 49 38 c
Cleveland
54 40 s
67 52 pc
Dallas
86 52 s
60 38 pc
Denver
49 20 pc 42 24 pc
Detroit
54 43 s
61 41 pc
Honolulu
84 69 pc 84 70 pc
Houston
83 63 s
72 41 t
Indianapolis
59 48 s
54 34 r
Kansas City
70 35 pc 44 31 pc
Las Vegas
86 61 s
83 60 s
Little Rock
80 52 s
56 33 r
Los Angeles
89 65 s
87 65 s
Miami
78 66 s
83 74 pc
Milwaukee
56 47 pc 50 38 c
Minneapolis
57 35 c
39 30 sn
Nashville
71 51 s
71 39 pc
New Orleans
79 61 s
79 51 t
New York City
60 46 pc 63 51 s
Oklahoma City
78 40 s
52 31 pc
80s
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18
60s
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Yorkk
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70s
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Augusta
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Hartford
Ch l tt
Charlotte
Columbia
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Philadelphia
Ph d lph
Phi
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D.C
DC
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Springfield
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Top k
Richmond
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Lou ill
Louisville
Kansas St.. Louis
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Wichita
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City
l igh
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Tucson
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80s
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Milwaukee
Detroit
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Buffalo
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Cleveland
Ch g
Chic
Chicago
70s
Albuquerque
Toronto
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90s
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Montreal
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50s
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Billings
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ip
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Calgar
like you’re going to come into the
game and throw 91 because he hits
fastballs well,” said Dodgers reliever Luis Avilan. “You go to your
strength, and maybe he’s going to
make a mistake.”
That, however, has been a losing
proposition for many pitchers, this
year more than ever. Through the
ALCS, Altuve was batting .400 in
the playoffs with a .500 on-base
percentage and five home runs. He
is the engine that powers one of
the best offenses ever assembled.
He is also a physical rarity,
which might help facilitate his
greatness, might make it merely
more remarkable and certainly obscures it.
“Everyone always talks about
his size,” McCullers said, “and
that’s the first headline: ‘Jose Altuve is small and great.’ I think it
should just be ‘Jose Altuve is
great.’ We’re watching a Hall of
Fame player in front of us, and all
we talk about is how small he is.”
—Ben Cohen contributed to this
article.
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.
Vancouver
Vancouver
ton’s Game 1 loss, it is how that
works in tandem with his explosiveness and hand-eye coordination.
Astros pitcher Lance McCullers,
who works out with Altuve in the
offseason, said, “He’s extremely fit
and can do things that—I’m not
going to say ‘that normal-sized
athletes can do,’ but that’s kind of
the reality of it.”
Altuve’s ability to hit the fastest
pitches begs the question: Why
don’t pitchers simply avoid throwing him those pitches? To some extent, they have tried in the postseason, only to watch him adapt
and beat them anyway. Altuve’s
home runs in the last two games
of the ALCS came on a 90-mph
changeup and an 86-mph slider.
The Dodgers aren’t overly reliant on fastballs to begin with.
They threw them less frequently
than all but six other teams this
year. But some pitchers still try to
overpower Altuve because they
want to.
“If you throw 98 (mph), it’s not
Down
1 Letter from the
teacher
2 High points
3 Crash cause
4 Acquire eagerly
before others
can
5 Leaves empty
6 Flyer
described by
Marco Polo
7 Outkast rapper
Big ___
8 Sen. Angus King,
e.g.
9 They may
come with
batteries
10 Djokovic’s
coach
11 1992 Broadway
show that won
Tonys for its
book and score
12 Second half of
a court game
13 1950s French
president Coty
18 1955 Bo Diddley
song
22 Catering
containers
24 Monkeys
25 Linus Pauling’s
alma mater
27 Arizona license
plate features
28 Flying Clouds
and Royales
29 Single
30 Go through
thoroughly
31 Raucous avian
32 Singular sort
36 Not live
37 Flock leader
39 Middle of the
brothers
Karamazov
40 Espionage
objective
42 Lets fly
43 Stanwyck’s
“The Strange
Love of Martha
Ivers” co-star
46 Levine’s
predecessor at
the Boston
Symphony
Orchestra
47 Modernize
48 Nastily
disparaging
49 Brewmaster’s
collection
50 Neutral color
54 Play for a chump
55 Tach fig.
56 Backing side
Previous Puzzle’s Solution
D
A
T
E
S
A
R
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D
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A
M
A
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A
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O
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A
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S
A
B
S
O
R
B
T
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E
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S
A
V
A
N
N
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C A S
S O R T
N E T S O
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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.
Thursday, October 26, 2017 | A15
OPINION
The Republicans’ Donner Party
Advice for the tender:
Do not let yourself be
blown over by Donald
Trump’s tweets.
again, and the nation’s president was counter-tweeted that
Mr. Corker “couldn’t get
elected dogcatcher,” an insult
not only to Mr. Corker but to
dogcatchers, who I’d guess are
part of Mr. Trump’s base.
That morning spat under
his belt, Mr. Trump traveled
later to Capitol Hill for lunch
with Senate Republicans.
Thirty minutes later, Arizona
GOP Sen. Jeff Flake stood on
the Senate floor and delivered
his cri de coeur about not
wanting to be “complicit” in a
long bill of particulars having
to do with the “degradation of
our politics.”
Welcome to the club, Mr.
Flake, and further congratulations for rediscovering the
wheel.
It’s no news that Mr.
Trump’s goal in life is to be the
whip-snapping lion tamer of
his own circus, that the Beltway press is happy to perform
their roles, or that CNN will
give Mr. Corker a perch to
snarl at the man with the
whip.
And one more thing: Hard
as it is for some to absorb, it’s
no longer news that in 2016
more than 60 million Americans voluntarily voted the lion
tamer into the U.S. presidency
after watching him perform
his act in public for more than
16 months.
His opponent was Hillary
Clinton, whose campaign,
along with the Democratic National Committee, was revealed this week to have paid
for the opposition research of
Fusion GPS, which produced
the salacious dossier filled
with kompromat—compromising info—about Mr. Trump,
such as allegedly hiring Russian hookers in Moscow to defile a bed. Somehow, the dossier leaked.
No less than the revered FBI
was “complicit” in this fantastic dossier gambit by continuing its own relationship with
Christopher Steele, the former
spy who produced the document.
So who could disagree with
Sen. Flake? Politics still ain’t
beanbag.
The press is now writing
that Republicans face a “dilemma”—whether to join the
Corker-Flake ring or remain
“silent” in the interests of “job
security.”
Mitch McConnell has become Washington’s own Solo-
leagues on eliminating the
egregious state and local tax
deduction, or that the bill will
add a fourth marginal tax
bracket to punish “the
wealthy.”
Then word leaked of a possible limit on annual 401(k)
contributions, and responding
to these vapors, the president
tweeted “There will be NO
change in your 401(k).”
Those who remain confused
about how Washington works
in reality should pay attention
to what Ways and Means
Chairman Kevin Brady, the
House’s tax-writing chief, did
Wednesday.
He said, matter-of-factly,
that adjustments to the treatment of 401(k)s are still on the
table. “We are continuing discussions with the president,”
Mr. Brady said.
Translation for sensitive political types: Do not let yourself be blown over by Mr.
Trump’s tweets. Do not make a
mountain out of every Trumpian tweetful.
Opinions vary on whether
Mr. Trump’s attacks on fellow
Republicans are impolitic or
unappreciated genius. It isn’t
genius. Lyndon Johnson and
Bill Clinton raged volcanically
inside the White House at opponents while embracing the
honorable gentlemen in public.
They knew that subjecting a
senator to public insults will
produce payback later on a
policy or bill the president
dearly wants.
Let us end on optimism, if
not sweet reason. Permanently
cutting the public’s taxes heals
all wounds. Donald Trump and
Bob Corker will discover that
truth the day they make possible the president’s signature
on the Tax Reform Act of 2018.
Write henninger@wsj.com.
ALAMY STOCK PHOTO
We are in the
foothills
of
the same tax
mountains
that Congress
crossed on the
way to tax reWONDER
form in the
LAND
1960s
and
By Daniel
1980s, and the
Henninger
Republicans
are starting to
sound like members of the
Donner Party in 1846. Overwhelmed by snowstorms in the
Sierra Nevadas, some in the
feuding Donner Party’s wagon
train ate the dead to survive.
History regards them with ambivalence.
As of this hour, the distinguished senator from Tennessee, Bob Corker, was last seen
on television saying he would
never vote for Donald Trump
Pioneers in the Sierra Nevadas.
mon, routinely expected to decide which half of the baby to
sacrifice and which to save. On
Tuesday he said: “We’re going
to concentrate on what our
agenda is and not any of these
other distractions that you all
may be interested in,” describing that as “a lot of noise.”
Mr. McConnell could write a
book about maintaining policy
focus under political pressure.
Here’s an analogy: When the
Spanish explorers were hacking their way across 16th-century America, they encountered swamps, arrows, biting
bugs and poisonous snakes.
That’s Trump’s Washington,
and those who can’t handle
swamp life really should turn
back and write their memoirs.
Though the Trumpian gulfs
may wash us down, as a poet
once wrote, the rest of us unable to quit or carp have to
press forward. And so it is
with the real business of the
moment—the tax-reform bill.
The press meticulously reports instances of Republican
pants-wetting as they take on
the tax rewrite. Rumors
abound—that the GOP has already caved to blue-state col-
The Democrats’ Impeachment Mania
By Karl Rove
I
t is easy to dismiss the impeachment efforts of Democratic Reps. Brad Sherman, Al Green and Maxine
Waters as the actions of inconsequential backbenchers.
Mr. Sherman argued in his
July impeachment resolution
that President Trump committed obstruction of justice by
exercising his constitutional
authority as head of the executive branch. The California
lawmaker said it “seems likely
that the president had something to hide” regarding Russia. Here’s an idea: How about
waiting for the FBI investigation to conclude?
Then there is Mr. Green, another long-serving House
member without any significant accomplishments. He unveiled his competing impeachment resolution earlier this
month. Among his list of Mr.
Trump’s impeachable acts was
disrespecting National Football League players. Overturning a national election because
of crude comments about athletes who don’t stand during
the anthem certainly is novel.
Then there is Ms. Waters.
She said last week that the
New York gala she was attending was so exciting that “with
this kind of inspiration, I will
go and take Trump out tonight.” Few took this provocation literally, but even her defense sounded unhinged: “He
creates controversy, he cannot
get along with our members of
Congress, and I’m going to
continue my efforts to impeach
him.” Apparently the standard
for impeaching a president has
shifted again: Now he can be
removed from office for creating controversy and fighting
with Congress.
It might be tempting to roll
your eyes at these manifestations of Trump Derangement
Syndrome. But it will be
harder for responsible Democrats to ignore or excuse the
party’s grandstanders now
It’s harder to ignore
now that megadonor
Tom Steyer has
pledged $10 million.
that hedge-fund billionaire
Tom Steyer has pledged $10
million to the cause of impeaching the president.
In an open letter last week,
Mr. Steyer called on grassroots Democrats “to urge your
federal representatives to remove him from office at once.”
On Mr. Steyer’s list of impeachable offenses were Mr.
Trump’s decisions to end President Obama’s Deferred Action
for Childhood Arrivals program, to block Obama-era regulatory initiatives, to withdraw
from the Paris climate accord
and to seek ObamaCare’s repeal and replacement.
By asserting a president
should be removed from office
over policy differences, Mr.
Steyer has done more than
trivialize impeachment. He
helps move America closer to
the tyranny Mr. Trump is accused of having brought about.
Still, his pressure for Democrats to join his banana republic-style coup will hurt many of
that party’s candidates in close
contests, regardless of their
answer.
I’m reluctant to give advice
to Democrats, but their growing impeachment chorus will
damage their party’s standing
in next year’s midterms. Many
independent voters who supported Mr. Trump in 2016 have
been turned off by his behavior in office but applaud his
policies. Democrats who promise they would use a congressional majority to impeach the
president will only repulse
these independents.
Democrats cheer when their
national party chairman calls
Mr. Trump an “existential
threat” to America and history’s “most dangerous president.” Yet these overwrought
comments could turn off swing
voters, especially if they have
Republican choices on the ballot who come across as focused on making the nation
more prosperous, united and
secure.
The Democrats’ criminalization of policy differences and
offensive speech has a companion sentiment also potentially hurtful to Democrats and
America’s political culture. It’s
the sense of insufferable moral
superiority encouraged by
President Obama, who reemerged on the political stage
this week.
While stumping for the
Democratic gubernatorial can-
didate in Virginia, Mr. Obama
charged that the proposal of
Republican standard-bearer Ed
Gillespie to target the violent
MS-13 gang was “damaging
and corrosive to our democracy.” Mr. Gillespie describes
this criminal syndicate as a
growing public-safety threat,
especially after its members
committed multiple murders
in Northern Virginia. In one,
gang members wielding a knife
and a large wooden stake
killed a 15-year girl in a remote
park and filmed her execution.
By calling to target MS-13
and opposing sanctuary city
policies supported by his Democratic opponent, Mr. Gillespie
raised perfectly legitimate issues. But Mr. Obama attacked
this as “cynical” and warned
“our democracy is at stake” if
Mr. Gillespie is elected. It is
tiresome when Mr. Obama depicts those he disagrees with
as not only wrong on the merits but morally irresponsible.
Democrats have a tremendous challenge in reforming
their party, which is at its
weakest point in a century,
largely thanks to Mr. Obama
and Hillary Clinton. Yet many
of them can’t help but obsess
on impeachment and mimic
Mr. Obama’s moral hectoring.
Both are good ways to lose
elections and stay out of
power.
T
he U.S. Senate voted
Tuesday to repeal the
Consumer Financial Protection Bureau’s rule prohibiting arbitration clauses in financial
contracts.
The
Treasury Department and the
Office of the Comptroller of
the Currency had both
weighed in with warnings
about the rule’s effects—criticisms that prompted a surprising admission from CFPB Director Richard Cordray.
The Treasury projected that
the rule would have generated
an additional 3,000 federal
class-action lawsuits over five
years, costing businesses $500
million to defend plus $330
million in payments to plaintiffs’ lawyers.
The CFPB had denied those
costs would be passed on to
consumers in higher interest
rates. But the comptroller’s
analysis of the CFPB’s data
found an 88% chance that the
total cost of credit would increase and estimated the likely
increase at almost 3.5 percent-
Many banks haven’t
been requiring
arbitration clauses.
age points. “That means a consumer, living week to week,
could see credit card rates
jump from an average 12.5 percent to nearly 16 percent,” acting Comptroller Keith Noreika
wrote in an op-ed for the Hill.
Mr. Noreika urged the Senate
to “vacate” the rule, as the
House had already done.
Here’s where things got in-
teresting. In response to the
comptroller’s analysis, Mr.
Cordray fired off a letter to
Sen. Sherrod Brown of Ohio,
the Senate Banking Committee’s ranking Democrat, insisting the criticism is “mistaken
and unfounded.”
Perhaps inadvertently, however, Mr. Cordray let slip a
broader truth—that contrary
to the argument of the rule’s
supporters all along, consumers are not being forced to
sign contracts with mandatory
arbitration clauses to access financial services.
“We know,” Mr. Cordray
wrote, “that roughly half of the
credit card market does not
have arbitration clauses in
their agreements. If the OCC
review were correct, it would
mean that these banks are operating at a substantial competitive disadvantage.” He
Shangri-La
In the Woods
Inside Camp David
By Michael Giorgione
(Little, Brown, 307 pages, $28)
J
udging from Rear Adm. Michael Giorgione’s new history of
Camp David, it’s not hard to see why the current occupant
of the White House has steered clear of the place. Mr.
Giorgione, who was the 17th commanding officer of Camp
David, describes the presidential retreat in rural Maryland in
starkly rustic terms. As he relates in “Inside Camp David,” the
200-acre mountain escape was never meant to be luxurious.
Mr. Giorgione, who served Presidents Bill Clinton and
George W. Bush, points out that Camp David is a private
sanctuary—not a vacation home. Every president “vacations”
somewhere else. Camp David, instead, serves as perhaps the
one place on earth where the commander-in-chief can pretend
he’s still an ordinary person, albeit one protected by Marines,
served by Navy stewards and followed around by an aide
carrying the nuclear codes.
The camp—officially known as Naval Support Facility
Thurmont—is kept pristine by a crew of Seabee engineers and
maintenance staff. As Mr. Giorgione explains, it’s home to more
than 20 cabins—including
Aspen, the president’s
lodge—all made of roughhewn oak and painted a
moss green. It also has a
gym and a conference
facility, as well as a health
clinic, its own fire department, a mess hall and a
hangar for Marine One, the
presidential helicopter. It even
has a chapel, which gets its
own dedicated chapter in
“Inside Camp David,” whose
broad survey also includes
Dwight Eisenhower’s three-tee
golf green; the cabin where
Egyptian president Anwar Sadat stayed
during Jimmy Carter’s marathon 1978 Middle
East peace negotiations; even the roads where
Barack Obama taught Malia to drive.
The camp’s modern origins date to World War II, when
security needs and fuel rations necessitated a new presidential
retreat close to D.C. Franklin Roosevelt settled on a mothballed
Works Progress Administration site, known as Camp #3, in the
Catoctin Mountains. When it became FDR’s camp—he
christened it “Shangri-La,” after the promised land in James
Hilton’s novel “Lost Horizon”—only the presidential cabin had
indoor plumbing. The rest of the staff relied on latrines.
Mr. Giorgione relates how interest has waxed and waned
with each successive president. Harry Truman, a man of the
open plains, hated Shangri-La—complaining of how the trees
closed in around him. (He went to Key West instead.) Eisenhower first visited with the intention of closing it down, only to
fall hard for the Catoctin Mountains. He renamed it after his
grandson, David. When John F. Kennedy became president, he
decided to keep the name, partly in gratitude for Ike’s counsel
following the Bay of Pigs fiasco in 1961. It’s stuck ever since.
Working at the camp, as Mr. Giorgione did, affords one an
up-close look at the First Family, an intimacy in which the
commanding officer can sometimes develop friendships with
presidents and observe them at their most human. Occasionally there are fires to put out—real and metaphorical. Mr.
Giorgione describes one wintery day when he was called to
President Eisenhower had planned to close
Camp David when he first visited, but he soon
grew attached. He even had a golf green built.
added that the CFPB had surveyed a “random sample” of
141 community banks, and
found only 7% of them use arbitration agreements.
To sum up, the head of the
CFPB now admits that roughly
half of big banks that issue
credit cards, and nearly all
smaller banks that provide
checking accounts, do not require their customers to sign
contracts with mandatory arbitration clauses. So how in
the world did the CFPB ever
conclude it needed to impose
itself on a sound and functioning market—a market in which
consumers have plenty of
choices and banks that don’t
require arbitration are free to
advertise themselves as such?
Aspen to meet with a military aide during a Clinton visit.
Standing inside the main living space as the fireplace roared,
the president opened a door to the patio as another visitor
entered through the front, and a rush of air stoked the fire.
“Time stood still,” Mr. Giorgione says, as the room filled with
smoke and his eyes locked with Mr. Clinton’s. Luckily, Mr.
Giorgione and his staff were able to quickly dissipate the
smoke before anything caught ablaze.
Still, life tends to slow down at Camp David, where the
chief mode of transportation is the golf cart—the presidential
cart, of course, being Golf Cart One. As Mr. Giorgione
explains, the banality of daily life often surprises those who
work there. “Marines walk the patrol in February at two a.m.
and it’s freezing cold, shockingly quiet, and very lonely,” he
writes. “The crew replants flowers because the deer got into
them. After a while, a natural frustration sets in.” Yet it has
also served as a venue for a number of pivotal moments in
American history. It’s where FDR and Winston Churchill
plotted D-Day and where the younger Bush convened his war
council the weekend after September 11 to chart a path
forward after the terror attacks.
While the White House and even Air Force One have
spawned multiple books, Camp David—isolated and private—
has drawn only scant historical attention in recent years,
including a slim 1995 volume by reporter W. Dale Nelson, with
a foreword by the camp’s namesake, David Eisenhower. Yet
even as other recent books—like Kate Andersen Brower’s
rollicking romp through the private quarters of the White
House “The Residence”—have exposed the dirty laundry of
First Families past, the secrets in Mr. Giorgione’s book are of
the decidedly PG variety, as when Russian president Vladimir
Putin forgot to bring his slippers to a 2003 visit with Mr.
Bush, and one of the crew was dispatched to Wal-Mart to
purchase a new pair.
Instead of a tell-all, “Inside Camp David” is a biography
written by a protective family member. Mr. Giorgione carefully
avoids giving away security or operational details. He never
mentions the underground bomb shelter, for example—not
even to chuckle over the controversy of when Richard Nixon
decreed that a swimming pool was to be built right atop the
emergency site. In that way, the book seems just the presidential memoir America needs right now. As Mr. Giorgione says,
“One of the great gifts of Camp David is the complete absence
of politics.” At a time of great teeth-gnashing and division, he
makes it possible to read a 70-year history of American presidents without once considering their political foibles.
Yet in the end, Mr. Giorgione’s examination of the “spirit”
of Camp David leaves the reader a bit frustrated. The book
makes clear that, to outsiders, there’s a certain almost
unknowable quality to the place. Even when the retreat is laid
bare by one who has worked there, Camp David still remains
private and intimate, with its secrets held close.
Mr. McKinney is director of
communications for the American Tort Reform Association.
Mr. Graff is the author, most recently, of “Raven Rock:
The Story of the U.S. Government’s Secret Plan to Save Itself—
While the Rest of Us Die.”
Mr. Rove helped organize
the political-action committee
American Crossroads and is
the author of “The Triumph of
William McKinley” (Simon &
Schuster, 2015).
Richard Cordray’s Surprising Admission
By Darren McKinney
BOOKSHELF | By Garrett M. Graff
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A16 | Thursday, October 26, 2017
OPINION
I
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
Democrats, Russians and the FBI
Immigrants and Cornell’s Black Student Union
t turns out that Russia has sown distrust and according to media reports it debated payin the U.S. political system—aided and ing Mr. Steele to continue his work in the runup
abetted by the Democratic Party, and per- to the election. This occurred while former FBI
haps the FBI. This is an aboutDirector James Comey was
Did the bureau use
face from the dominant media
ramping up his probe into
narrative of the last year, and
supposed ties between the
disinformation to
it requires a full investigation.
Trump campaign and RusThe Washington Post re- trigger its Trump probe? sians.
vealed Tuesday that the HilTwo pertinent questions:
lary Clinton campaign and
Did the dossier trigger the FBI
Democratic National Committee jointly paid probe of the Trump campaign, and did Mr.
for that infamous “dossier” full of Russian dis- Comey or his agents use it as evidence to seek
information against Donald Trump. They fil- wiretapping approval from the Foreign Intellitered the payments through a U.S. law firm gence Surveillance Court of Trump campaign
(Perkins Coie), which hired the opposition-re- aides?
search hit men at Fusion GPS. Fusion in turn
Congressional investigators need to focus on
tapped a former British spook, Christopher the FBI’s role, and House Speaker Paul Ryan
Steele, to compile the allegations, which are was correct Wednesday to insist that the bubased largely on anonymous, Kremlin-con- reau comply with Congress’s document denected sources.
mands “immediately.” Mr. Sessions has recused
Strip out the middlemen, and it appears that himself from the Justice Department’s Russia
Democrats paid for Russians to compile wild al- probe, but he and Deputy AG Rod Rosenstein
legations about a U.S. presidential candidate. can still insist on transparency. Mr. Ryan should
Did someone say “collusion”?
also reinstall Intelligence Chair Devin Nunes as
This news is all the more explosive because lead on the Russia investigation, since it apthe DNC and Clinton campaign hid their role, pears the Democratic accusations against him
even amid the media furor after BuzzFeed pub- were aimed in part at throwing him off the Fulished the Steele dossier in January. Reporters sion trail.
are now saying that Clinton campaign officials
All of this also raises questions about Special
lied to them about their role in the dossier. Cur- Counsel Robert Mueller’s investigation. The Furent DNC Chair Tom Perez and former Chair sion news means the FBI’s role in Russia’s elecDebbie Wasserman-Schultz deny knowing tion interference must now be investigated—
about the dossier arrangement, but someone even as the FBI and Justice insist that Mr.
must have known.
Mueller’s probe prevents them from cooperatPerhaps this explains why Congressional ing with Congressional investigators.
Democrats have been keen to protect Fusion
Mr. Mueller is a former FBI director, and for
from answering dossier questions—disrupting years he worked closely with Mr. Comey. It is
hearings, protesting subpoenas and deriding no slur against Mr. Mueller’s integrity to say
Republican investigators. Two of Fusion’s co- that he lacks the critical distance to conduct a
founders invoked their Fifth Amendment rights credible probe of the bureau he ran for a dozen
last week rather than answer House Intelli- years. He could best serve the country by regence Committee questions, and Fusion filed signing to prevent further political turmoil over
a federal lawsuit on Friday to block committee that conflict of interest.
subpoenas of its bank records.
The American public deserves a full accountThe more troubling question is whether the ing of the scope and nature of Russian meddling
FBI played a role, even if inadvertently, in as- in American democracy, and that means followsisting a Russian disinformation campaign. We ing the trail of the Steele dossier as much as it
know the agency possessed the dossier in 2016, does the meetings of Trump campaign officials.
A
McConnell 1, Cordray 0
mid Republican disagreements over
health and tax reform, 50 GOP Senators
united Tuesday to overturn the Consumer Financial Protection Bureau’s arbitration
rule. This is a victory for the economy and Mitch
McConnell’s leadership.
CFPB director Richard Cordray gambled that
Republicans were too timid and divided to rescind his expansive rule that banned arbitration
agreements with class-action waivers in financial service contracts. The rule would have set
off a trial-lawyer race to the courthouse.
A Treasury report Monday detailed how the
rule violated Congress’s directive to the CFPB
in Dodd-Frank to examine whether limiting or
banning arbitration would protect consumers
and benefit society. Mr. Cordray’s rule did neither. According to the CFPB’s own data, more
than $330 million in wealth would have been
transferred from businesses to trial lawyers.
Businesses would have paid some $2.2 billion
more on attorney fees and settlements.
Most consumers would have been worse off
T
since arbitration provides an expeditious and
inexpensive way to resolve disputes. The CFPB’s
own study found that consumers on average received $32 from class-action payouts versus
$5,389 from arbitration awards. The Comptroller of the Currency said the rule would have increased the cost of credit.
Vice President Mike Pence cast the 51st vote
for the Congressional Review Act resolution
since Louisiana Senator John Kennedy and
South Carolina’s Lindsey Graham sided with the
tort bar. Mr. McConnell deserves credit for preventing other defections after Elizabeth Warren
portrayed the resolution that passed the House
in July as “a giant wet kiss to Wall Street.”
Democrats like Heidi Heitkamp (N.D.) and
Joe Donnelly (Ind.) ought to be held to account
in next year’s midterms for supporting trial lawyers over consumers. Mr. Cordray has been
mulling a bid for Ohio Governor, and the rebuke
won’t be a winning platform. Maybe he should
step down before he gets handed more defeats
by Congress or the courts.
Jeff Flake’s Public Service
here is a familiar Washington irony in Trump’s unpresidential behavior.
the praise that the press corps and
Making a virtue of necessity is not uncomDemocrats are heaping on Jeff Flake for mon in politics, and it is easier to “not be comhis speech Tuesday announcplicit” when you aren’t runThe Arizona Senator
ing that he won’t seek re-elecning for re-election. But Mr.
tion to the Senate in 2018. The
Flake is right that far too
gives
the
GOP
a
same crowd criticized Mr.
much of Mr. Trump’s rhetoric
chance to save his seat. is crude, undignified and paFlake as a heartless libertarian
until he opposed Donald
tently false.
Trump. But no matter, the AriAs we’ve pointed out many
zonan has still done his party and maybe his times, the impulsive narcissism of Mr. Trump’s
cause a public service.
mean tweets aren’t bursts of PR genius. They
The first service is making it possible for Re- are by and large politically destructive acts that
publicans to retain the Arizona Senate seat. Mr. hurt his ability to persuade and accomplish his
Flake struggled to win election in 2012 and he’s policy goals. Voters are already showing politinever built a strong state profile. His approval cal combat fatigue, as his 40% approval rating
rating is so low that national Republicans feared suggests.
he was unlikely to win a primary, much less hold
The more important part of Mr. Flake’s
the seat against a Democrat. Republicans believe speech was his description of the GOP’s divide
they can hold the seat for the party but not for over ideas: “It is clear at this moment that a trahim, so he is taking one for the team.
ditional conservative who believes in limited
Mr. Flake’s departure means that other Re- government and free markets, who is devoted
publicans have room to jump in against Kelli to free trade, and who is pro-immigration, has
Ward, the Steve Bannon acolyte who lost to a narrower and narrower path to nomination
John McCain in 2016. Ms. Ward, an osteopathic in the Republican Party—the party that for so
physician, is famous for calling a public hearing long has defined itself by belief in those things.”
to address constituent concerns that the The GOP, he added, has “given up on those core
plumes behind jets are an attempt to poison the principles in favor of the more viscerally satispublic. Her first reaction to news about Mr. Mc- fying anger and resentment.”
Cain’s cancer diagnosis was that he probably
In this Mr. Flake is too pessimistic, but he is
wasn’t long for the Senate. She is an odds-on identifying the battle lines in the GOP. The Banloser if she wins the GOP nomination.
non wing wants to redefine the party around
But Mr. Flake is mainly getting huzzahs be- hostility to immigration and trade, but its main
cause in announcing his departure he de- animating principle is anger against whoever
nounced Donald Trump. “Reckless, outrageous, happens to be in power. This isn’t a principle
and undignified behavior has become excused that can govern even if it manages to win a few
and countenanced as ‘telling it like it is,’ when elections.
it is actually just reckless, outrageous, and unThe Bannon wing is also a long way from takdignified,” Mr. Flake thundered.
ing over the GOP, and the next test will the 2018
“And when such behavior emanates from the midterms. Mr. Bannon has called for a “season
top of our government, it is something else: It of war” against all GOP Senate incumbents
is dangerous to a democracy. Such behavior other than Ted Cruz, and the best response for
does not project strength—because our Republicans who want to hold Congress and adstrength comes from our values. It instead vance a free-market agenda is to win that seaprojects a corruption of the spirit, and weak- son. This will require candidates who can stitch
ness.” He added that “I will not be complicit,” together the GOP’s populist and traditional
though he is hardly the first to note Mr. wings—and then win in November.
Regarding Naomi Schaefer Riley’s
“Cornell’s Black Student Disunion” (oped, Oct. 19): I grew up in the Congo
and have numerous friends in the U.S.
from the Congo and other African
countries who are here for an education or a better life. Every one of them
is grateful for the opportunity to secure an excellent education. The U.S.
offers the opportunity to pursue their
dreams and a chance to raise their
families in peace. Most come here from
different cultures with minimal money
and limited English language skills. Interestingly, I’ve never heard one complain about discrimination, obstacles
or being a victim. Rather, they are
grateful. Juxtapose this with Cornell’s
Black Students United (BSU) whose
members feel they should be treated
better than every other color or race if
they have ancestors who’ve been here
for more than two generations.
The counterintuitive posturing of
American blacks denying other blacks
from Africa or the Caribbean is appalling. First-generation African or Caribbean students have more obstacles to
overcome to get into any university,
much less a prestigious one like Cornell. Furthermore, the liberal American
blacks who worship at the altar of “diversity” and “victimhood” should welcome real Africans or Caribbeans versus seeking preferences for those
American blacks who truly have the
superior advantage of having grown up
in the U.S.
If my Congolese friends are grateful
for their opportunities here and have
more challenges to overcome, why
should American blacks get special
treatment? Call this action what it is:
racism. And it’s being pushed and protected under the guise of alleged victimization and preferential treatment
at the expense of others of all colors
and walks of life. So I challenge the
BSU folks to start focusing on the concept of succeeding in life instead of always dwelling on the idea that the system is rigged against them.
JEFF EALES
Mission Viejo, Calif.
Actually, Cornell’s Black Students
United’s demands on behalf of affirmative-action admissions for American
blacks, ahead of “black” and many
other recent immigrants, is neither
“radical” nor off-base. Desegregation
of America’s public and private colleges and universities and affirmative
action in admissions were established
in an era of remedying the long-term
exclusion of native-born black Ameri-
cans and of societal-based discrimination which disadvantaged, marginalized and ghettoized generations of
black and brown American citizens
who were kept out of mainstream opportunities. It only made sense in the
1960s and ’70s, especially in the aftermath of urban rioting, for affirmativeaction programs that recruited and
specially admitted the progeny of the
former and direct victims of race prejudice, discrimination and Americangrown slavery.
Recent immigrants do not share
that heritage of exclusion or of overt
domestic racial discrimination. Why
should they be counted and placed
ahead of American blacks and Hispanics for coveted seats in some of the nation’s best and elite colleges on the basis of their immigration status or
because they share the skin color of
the very Americans whose parents,
grandparents and relatives were purposefully and pervasively placed behind the eight ball of American segregation for decades? Recent immigrants
of whatever hue do not merit, much
less warrant, access to our colleges
and universities through affirmativeaction programs.
MICHAEL MEYERS
President
New York Civil Rights Coalition
New York
Universities have been categorizing
Africans, African-Americans and Caribbean blacks in the same group to inflate diversity statistics. Cornell’s BSU
objected because this accounting fiction understated the number of African-Americans and was therefore
deemed discriminatory. In 2004, the
ever-quotable Henry Louis Gates Jr. estimated that two-thirds of Harvard
University students classified as blacks
were of West Indian and African descent or biracial rather than AfricanAmerican, i.e., “in which all four grandparents were born in America,
descendants of slaves.”
Universities, to exaggerate their African-American student population, include those who self-identify as blacks.
Importantly, African-Americans like to
include as many classifications of
blacks and other nonwhite students to
increase political leverage for additional funds and demands. Nevertheless, as seen in Cornell’s BSU attempt
to limit non-African-American blacks,
the BSU blundered into the reality of
their putative special status.
GENE DATTEL
Lakeville, Conn.
Chinese Steel Overcapacity: A World Problem
John Ferriola is largely correct in
his analysis of China’s prolific use of
state subsidies to distort global steel
trade, but not in his proposed remedy
(“China: A Company Disguised as a
Country,” Letters, Oct. 17). Rather
than impose new trade restrictions
under a seldom-used, Cold War-era
law, an action that will certainly result
in damaging retaliation by our trading
partners, the better course is to heed
the counsel of Harvard’s Graham Allison, who noted in “Behold the New
Emperor of China” (op-ed, Oct. 17)
that China’s influence on the world
stage surged as America has retreated.
There is no better way for America
to constructively meet China’s steel
challenge, and at the same time re-
Imagine if the Founding
Fathers Had Twitter Tweets
When another of President
Trump’s tweets led the morning’s
news, it caused me to wonder what
it would have been like if our
Founding Fathers had Twitter?
Reading Alan Taylor’s Oct. 21 review
of Gordon S. Wood’s book “Friends
Divided,” my imagination was
fueled. “Jefferson sought to ingratiate, Adams to provoke,” Mr. Taylor
writes. Twitter would have been the
perfect means for each of them.
“Adams warned them [Americans]
to beware of their passions, greed
and conceit. Jefferson told them
what they longed to hear.” Twitter
would have been exploding, especially later when Adams “seethed in
retirement.” Perhaps Twitter would
have accelerated their reconciliation.
And wouldn’t Benjamin Franklin
have been an avid and interesting
tweeter? Just wondering.
ROSS FELTZ
Meadville, Pa.
claim its international economic leadership, than by organizing and advancing a robust, sustained, multilateral
effort under the Global Forum on Excess Steel Capacity, an entity the U.S.
helped create, to achieve a workable,
long-term solution to the steel overcapacity problem. There is no better
time to start than now.
RICHARD CHRISS
President
The American Institute for
International Steel
Alexandria, Va.
It Would Make Sense to Add
RINs to Exported Ethanol
Regarding your editorial “Trump
Caves on Ethanol” (Oct. 23): One of
President Trump’s key policy objectives is to promote American “energy
dominance.” But the EPA’s pronouncement that the current biofuels “point
of obligation” won’t be changed runs
counter to this goal.
Last year the U.S. exported more
than one billion gallons of ethanol,
while imports declined. The proposal
to attach renewable identification
numbers (RINs) to exports would have
been a boon to farmers and ethanol
refiners while also providing more liquidity to the RINs market. What’s
more, it would have extended our energy dominance into the growing
global market for renewable fuels.
BERNARD L. WEINSTEIN, PH.D.
Southern Methodist University
Dallas
Pepper ...
And Salt
THE WALL STREET JOURNAL
CORRECTION
The 2017 NBA Finals drew 79 million unique viewers in the U.S. and
286 million world-wide. This was
misstated in the Oct. 23 opinion article “The High-Tech Playing Field.”
Letters intended for publication should
be addressed to: The Editor, 1211 Avenue
of the Americas, New York, NY 10036,
or emailed to wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
“So if you’ve all signed and turned
in your waivers—let’s ride!”
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THE WALL STREET JOURNAL.
Thursday, October 26, 2017 | A17
OPINION
By Rupert Darwall
A
majority of scientists
might say a scientific
theory is true, but that
doesn’t mean the consensus is reliable. The science
underpinning environmental claims
can be fundamentally wrong—as it
was in one of the biggest environmental scares in recent decades.
The parallels between the
two environmental frenzies
are many, but the stakes
are much higher now.
The acid-rain alarm of the 1970s
and ’80s was a dry run for the current
panic about climate change. Both began in Sweden as part of a war on coal
meant to bolster support for nuclear
power. In 1971 meteorologist Bert Bolin wrote the Swedish government’s
report on acid rain to the United Nations. Seventeen years later he became
the first chairman of the Intergovernmental Panel on Climate Change.
There are many parallels between
acid rain and global warming. Each
phenomenon produced a U.N. convention—the 1979 Geneva Convention on
Long-Range Transboundary Air Pollution in the case of acid rain, and the
1988 Framework Convention on Climate Change. And each convention
led to a new protocol—the 1985 Helsinki Protocol and the 1997 Kyoto
Protocol. Public alarm surrounding
acid rain was far more intense, especially in Germany, where popular reaction to media stories about acid
rain reached a pitch of hysteria not
yet seen with global warming. A 1981
Der Speigel cover story featured an
image of smokestacks looming over a
copse of trees with the title “The Forest Is Dying.”
The most striking parallels are the
role of scientific consensus in underpinning environmental alarm and the
way science is used to justify cuts in
emissions. The emission of sulfur dioxide into the atmosphere “has proved
to be a major environmental problem,”
Bolin wrote in his 1971 report. National
scientific academies across North
America and Europe were in complete
agreement. “We have a much more
complete knowledge of the causes and
STEPHEN ST. JOHN/GETTY IMAGES/NATIONAL GEOGRAPHIC RF
Climate Alarmists Use the Acid-Rain Playbook
Signs in front of the U.S. Capitol on Earth Day 2000.
consequences of acid deposition than
we have for other pollutants,” a report
by the National Academy of Sciences’
National Research Council said in 1981.
According to the NRC, the circumstantial evidence was “overwhelming.”
Many thousands of lakes had been affected, rivers were losing salmon, fisheries in the Adirondacks were in a bad
way, red spruce were dying, and pro-
The Case for Keeping Janet Yellen
By Alan S. Blinder
P
resident Trump will soon make
a nomination that is hugely
consequential, to him and to
literally every American: his choice
for the next chair of the Federal Reserve Board.
Of the issues relevant to the decision, one stands out: Who is likeliest
to continue our economy’s remarkable streak of growth and job creation even as the Fed “normalizes”
its monetary policy? If he or she
succeeds, the good times will continue to roll. If not, we could all be
in trouble.
The Fed can’t fix every
economic ailment. But
macroeconomically, the
U.S. is terrific right now.
Let’s hope it’s “she.” The term of
the incumbent Federal Reserve chair,
Janet Yellen, ends in February. The
three main alternatives in President
Trump’s mind appear to be, in alphabetical order, Jerome “Jay” Powell, a current Fed governor; John
Taylor, a monetary economist from
Stanford; and Kevin Warsh, a former
Fed governor.
I am privileged to count all four
candidates among my friends. They
are all serious, knowledgeable people who understand the Fed and
have the nation’s best interest at
heart. Two of them, Ms. Yellen and
Mr. Taylor, are distinguished economists—highly germane to the Fed’s
current challenge. Two of them, Mr.
Taylor and Mr. Warsh, have been
praised by this newspaper.
But Janet Yellen stands head and
shoulders above the rest, because
she is least likely to err either by
hitting the monetary brakes prematurely or by staying on the brakes
too long. Either mistake could end
the economic winning streak.
Ms. Yellen’s extensive experience
on the Federal Open Market Committee began when I was the Fed’s
vice chairman in 1994 and she joined
the board as a governor. The two of
us became the house “doves” on a
fairly hawkish committee dominated
by Alan Greenspan. We weren’t
doves because we wanted higher inflation—we didn’t. We wanted continued growth, more job creation
and lower unemployment. It worked
well then, though most of the credit
goes to Mr. Greenspan, not us. A
similarly dovish strategy is working
again today, with Janet Yellen at the
helm.
Ms. Yellen returned to the Fed in
2004 as president of the Federal Reserve Bank of San Francisco, where
she served with distinction for about
six years. In that position, she not
only displayed an abundance of good
judgment but sounded early warnings (alas, not heeded) about the
shenanigans that eventually led to
the financial crisis. One of her main
concerns was that a financial ruction
could impede, if not destroy, growth.
In December 2010, Ms. Yellen
moved back to Washington as vice
chair of the Fed Board of Governors.
By then the Great Recession was
over, but the economy was still in
the doldrums. Chairman Ben Bernanke, shoulder to the wheel, was
trying to boost growth, and Ms. Yellen instantly became a key ally. The
name of the game then was the
same as now: preventing the Federal
Open Market Committee from turning hawkish prematurely.
One of the board’s most prominent hawks at the time was Mr.
Warsh. He had earned well-deserved
kudos for helping Mr. Bernanke
through the acute stage of the crisis.
But by 2009—yes, 2009!—he was already worrying that the Fed’s extraordinary monetary policies would
lead to high inflation. When Mr.
Warsh left the Fed in 2011, CNBC’s
Larry Kudlow lamented the loss of
“hard-money hawks.”
Meanwhile, Mr. Taylor was perhaps the leading academic critic of
virtually everything the Bernanke
Fed did to spur growth. Like Mr.
Warsh, he feared the Fed was sowing the seeds of future inflation. He
also objected to central-bank purchases of mortgage-backed securities as interfering with the market’s
allocation of credit. No one knows
what would have happened if the
Fed had followed the hawkish policies recommended by Messrs. Taylor
and Warsh, but it wouldn’t have
been good.
Fortunately, the Bernanke-Yellen
philosophy prevailed and was phenomenally successful. The economy
flourished, the unemployment rate
has been 5% or lower for two years,
and inflation has remained low. That
particular hawk-dove debate reflected honest differences of opinion. But Ms. Yellen was right, and
Messrs. Taylor and Warsh were
wrong.
By the time Janet Yellen became
chair in February 2014, the central
bank’s main job was extricating itself from the hyper-expansionary
policies left over from the Great Recession. Monetary policy had to get
back to normal. But how? Very gradually, because if the Fed switches
from the accelerator to the brake too
abruptly, it can damage growth. Ms.
Yellen was the perfect person for the
job, which she has managed superbly
so far, despite continued hawkish
objections. But the job isn’t over.
The Fed cannot fix every economic ailment. But macroeconomically, things are pretty terrific right
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now. Both unemployment and inflation are extremely low, the Dow
broke through 23000 without blinking, and the expansion is in its 100th
month. According to the National
Bureau of Economic Research, only
two expansions in U.S. history lasted
longer. The fabled Kennedy-Johnson
boom of the 1960s ran 106 months—
a mark we seem likely to break. The
amazing Clinton boom of the 1990s
lasted 120 months. But even that
historic record is within reach if we
can keep things going past June
2019.
If that happens, history will record the Obama-Trump boom as the
longest ever. The person bestequipped to make that happen is
Janet Yellen.
Mr. Blinder is a professor of economics and public affairs at Princeton University and a visiting fellow
at the Brookings Institution. He was
formerly vice chairman of the Federal Reserve.
duction from Canadian sugar maple
trees had been affected. Acid rain was
a scientific slam dunk.
Politicians duly parroted what the
scientists told them. “Acid rain has
caused serious environmental damage in many parts of the world,”
President Jimmy Carter wrote in his
1979 environmental message to Congress. He signed an agreement with
Canada to establish five acid-rain
working groups, and Congress set up
a 10-year National Acid Precipitation
Assessment Program, which went by
the catchy acronym Napap.
To Canadian anger, President Ronald Reagan was more skeptical than
his predecessor. The head of Canada’s
Federal Assessment and Review Office accused Mr. Reagan of “blatant
efforts to manipulate” the science being done by the working groups. A
formal note of protest from Ottawa
pointed to the more than 3,000 scientific studies on acid rain yielding
“sufficient scientific evidence” for
policies to cut emissions.
Vice President George Bush promised Canada that if elected president,
he would act on the problem. But as
acid-rain cap-and-trade legislation
was making its way through Congress, the Environmental Protection
Agency encountered a major problem. Napap’s draft report concluded
that the science was wrong. Yes,
power-station emissions make rain
more acidic—rain is naturally acidic,
and more so during thunderstorms—
but changes to ecosystems, the report
said, were mainly caused by changes
in land use. The felling of trees and
the burning of stumps in the Adirondacks had reduced the acidity of the
forest floor. After conservationists
put a stop to it, the soil gradually returned to its previous acidity.
Rather than admit it had the science wrong, the EPA set about suppressing the inconvenient findings.
The Napap report was delayed until
after key provisions of cap-and-trade
legislation had been agreed to in Congress. As outlined in a 1992 article in
Reason, the EPA then waged a dirtytricks campaign to discredit Edward
C. Krug, a soil expert and the leading
dissident Napap scientist. It assembled a group of compliant scientists to
conduct a sham peer review and conclude that Mr. Krug was a bad scientist. The episode ended with an assistant administrator of the EPA, William
Rosenberg, apologizing to Mr. Krug to
avoid a threatened libel action.
To this day, the zombie science of
acid rain lives on at the EPA’s website,
which falsely states that acidification
of soil, streams and lakes is caused by
emissions from power stations. The
EPA reckons the annual cost of antiacid-rain measures in the U.S. will
reach $65 billion in 2020, but it no longer claims that the money will prevent
ecosystem damage. Now it just claims
to be improving public health.
In its approach to the science of
global warming, the EPA under current Administrator Scott Pruitt
couldn't offer a greater contrast with
the acid-rain coverup perpetrated by
the EPA during the late ’80s and early
’90s. Instead of attacking dissident
scientists, Mr. Pruitt’s proposal to hold
red-team/blue-team appraisals would
put dissenters on the same footing as
consensus-supporting scientists. This
will enable proper debate between
both camps to reveal the strengths
and weaknesses of the scientific consensus on global warming.
Open debate is as crucial to science
as it is to democracy. Capping sulfurdioxide emissions is an economic pinprick compared with the multitrilliondollar cost of cutting emissions of
carbon dioxide. If people’s way of life
is to be forcibly changed in an expensive attempt to decarbonize society,
at the very least it should be done
with their informed consent.
Mr. Darwall is author of “Green
Tyranny: Exposing the Totalitarian
Roots of the Climate Industrial Complex” (Encounter, 2017).
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
A18 | Thursday, October 26, 2017
THE WALL STREET JOURNAL.
WORLD NEWS
WORLD WATCH
South Sudan Peril Puts U.S. in Bind
Haley arrives to assess
support as food crisis,
civil war threaten to
destabilize region
NAIROBI, Kenya—When U.S.
Ambassador to the United Nations Nikki Haley arrived in
South Sudan on Wednesday to
assess how U.S. aid is being
spent, she walked into a humanitarian disaster that threatens U.S. security interests.
Nearly a third of South Sudan’s population of 12 million
has been displaced in the six
years since U.S. policy makers,
Washington think tanks and
Hollywood stars like George
Clooney fostered its creation.
Now, this nascent nation is
collapsing in real time, spawning a crisis that has drawn
comparisons to the 1994
Rwanda genocide.
The White House has signaled it could scale back its
hefty annual financial assistance to increase pressure on
President Salva Kiir’s government. The U.S. has spent some
$10 billion to support South
Sudan since independence and
pays more than a quarter of
all international aid to the
country each year.
“We are disappointed by
what we are seeing,” Ms. Haley told local radio on
Wednesday. “This is not what
we thought we were investing
in. What we thought we were
investing in is a free and fair
society where people could be
safe, and South Sudan is the
opposite of that.”
Ms. Haley’s harsh words for
South Sudan’s government
came as she stressed the U.S.
predicament:
Withdrawing
aid would most likely aggravate the humanitarian disaster.
“We are not going to give
up on the South Sudanese
people,” she said on Wednesday. “We are here to fight for
them, we are here to help, to
do whatever we have to to
make peace and security become a permanent part of
ALBERT GONZALEZ FARRAN/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY MATINA STEVIS-GRIDNEFF
Congressional Vote
Spares Temer a Trial
Lawmakers voted against
putting President Michel Temer
on trial on corruption charges,
keeping him at the helm even as
the chances of approving some
of his promised economic reforms dwindle ahead of next
year’s presidential election.
Mr. Temer faced removal
from office if the vote went
against him.
Mr. Temer needed 172 votes,
including abstentions and absentees, in the 513-seat Chamber of
Deputies to avoid trial in Brazil’s
supreme court—a count he
achieved even as voting continued on Wednesday.
—Paulo Trevisani
and Jeffrey T. Lewis
BRAZIL
Central Bank Cuts
Main Interest Rate
Emergency
The central bank cut its
benchmark interest rate to near
its lowest level ever to boost a
feeble economy that has begun
to recover despite political paralysis in Latin America’s largest nation.
The bank trimmed its Selic
rate to 7.5% from 8.25%. A rapid
slowdown in price increases has
allowed the bank to cut the
Selic from 14.25% over the past
year. Annual inflation was 2.5%
in September, well below the
bank’s target of 4.5%.
—Paulo Trevisani
and Jeffrey T. Lewis
SUDAN
UNITED KINGDOM
Nikki Haley spoke with a U.N. official in Juba on Wednesday, when the U.S. envoy said the South Sudanese people wouldn’t be abandoned.
South Sudan.”
Ms. Haley was caught up in
a small manifestation of the
country’s massive problems on
Wednesday, when she had to
be evacuated from a U.N. camp
for displaced people she was
visiting in Juba after a demonstration against Mr. Kiir became volatile, the Associated
Press reported.
The rhetoric by Ms. Haley
marks a contrast with the situation in July 2011, when a
U.S.-backed independence referendum promised peace and
a new state after decades of
civil war with Sudan’s Khartoum government.
Recent years have seen the
revival of civil war, sparking a
famine that put 100,000 on the
verge of dying of starvation.
Echoing Ms. Haley, diplomats and experts have blamed
the country’s leaders for the
unfolding crisis.
At independence, Mr. Kiir
and Riek Machar, of the dominant Dinka and smaller Nuer
BRAZIL
tribe respectively, shared
power, as president and vice
president. The deal fell apart,
and by 2013 the country collapsed into conflict. Mr.
Machar took to the bush and
became a rebel leader.
A U.S.-backed power-sharing
agreement between the two
men, intended to ease tribal
tensions through shared state
institutions after a three-year
civil war, took effect in April
2016, and Mr. Machar rejoined
the government. The accord
collapsed after three months.
Ethnic cleansing, for which
government troops are mostly
blamed, has become so widespread that the U.N. has
warned the country could
soon descend into genocide.
“The scope and expansion
of the conflict has never been
worse,” said Adama Dieng, the
U.N. secretary-general’s special
adviser for the prevention of
genocide. “The country is fragmenting everywhere and its
social fabric is disintegrating.”
Hungry for Peace
Severe food shortages, mostly caused by continued
fighting, are devastating half of South Sudan.
Food security phase classification
June-July 2017 projection
Stressed
Crisis
Growth Sped Up
In Third Quarter
ETHIOPIA
SOUTH SUDAN
CENTRAL
AFRICAN
REPUBLIC
100 miles
100 km
D E M O C R AT I C
REPUBLIC
OF CONGO
Source: World Food Program
K E N YA
UGANDA
THE WALL STREET JOURNAL.
The economy accelerated in
the third quarter, according to a
preliminary estimate Wednesday, strengthening expectations
that the Bank of England may
raise interest rates as soon as
next month.
The Office for National Statistics said U.K. gross domestic
product expanded 0.4% in the
third quarter compared with the
previous three months, an annualized rate of 1.6%.
—Jason Douglas
and Wiktor Szary
WHAT DO PEOPLE really INVEST IN?
Hint: It’s not actually stocks or bonds. What people really invest in is what they hope to get out of life.
To help them get there, you can’t just approach investing from one point of view. We prefer to cross-pollinate
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want out of life. Or they could get even more. invesco.com/MoreOutOfLife
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Invesco Distributors, Inc.
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TECHNOLOGY: NINTENDO TO OFFER ‘ANIMAL CROSSING’ FOR PHONES B4
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
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Thursday, October 26, 2017 | B1
THE WALL STREET JOURNAL.
DJ TRANS g 1.62%
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NIKKEI (Midday) 21742.98 À 0.16%
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Texas Power Producers Push Merger Talks
BY DANA MATTIOLI
$10 billion. Vistra had a market value of $8.4 billion.
Dynegy shares surged 17%
to close at $10.78 on Wednesday after The Wall Street
Journal reported on the advanced talks, while Vistra
jumped 3.8% to $20.32
The Journal reported in
May that Vistra had made a
takeover approach to Dynegy
and the power companies
were in preliminary talks.
Dynegy is a wholesale
power producer with 50 plants
in 12 states around the country, producing enough energy
for some 25 million homes.
Customers include utilities
and municipalities.
The Houston-based com-
Vistra Energy Corp. and
Dynegy Inc., two big independent power producers, are in
advanced talks to combine.
The Texas power companies, which have been in onand-off talks since at least the
spring, could announce a deal
as soon as next week, people
familiar with the matter said.
As usual, such talks could fall
apart before a deal is reached.
Dynegy’s market value was
$1.2 billion at the start of
trading Wednesday. But including debt, the companies
combined are worth more
than $20 billion as both have
enterprise values exceeding
flirtation with Enron Corp. on
the eve of the energy trader’s
bankruptcy and its own subsequent chapter 11 case.
Vistra also has a notable
past. Investors including private-equity firms KKR & Co.
and TPG bought a predecessor,
TXU Corp., for $32 billion at
the height of the leveragedbuyout boom that preceded
the financial crisis. The deal
was the largest LBO in history
and a hallmark of buyout
firms’ big-ticket purchases in
those years.
TXU filed for chapter 11
protection in 2014 with $42
billion in debt after a decline
in power prices upended its
business. The operations that
pany also has a retail business
that provides electricity to
about 963,000 residential customers in Illinois, Ohio and
Pennsylvania, according to its
annual report.
Dallas-based Vistra operates Luminant, which produces and sells power on the
open market, and retail-electricity provider TXU Energy,
which serves about 1.7 million
residential and business customers in Texas.
Tacking on Dynegy’s power
stations would broaden Vistra’s footprint to the Midwest,
Northeast and other parts of
the country.
Dynegy has a colorful history that includes a merger
now form Vistra were spun
out last October, a milestone
in one of the largest corporate
bankruptcies in history.
The utility sector has been
active despite a broader slowdown in deal making, as a
slump in power prices has
prompted some companies to
bulk up through mergers.
In August, private-equity
firm Energy Capital Partners
signed a deal to buy Calpine
Corp. for $5.5 billion. In the
same month, Sempra Energy
reached a deal to buy Oncor,
another TXU descendant, for
$9.45 billion, snatching the
power-transmission company
away from Warren Buffett’s
Berkshire Hathaway Inc.
Energized
Share performance on Wednesday,
minute-by-minute
25%
20
15
10
5
Dynegy
$10.78
s17%
Vistra Energy
$20.32
s3.8%
0
–5
10 a.m.
noon
2
4
Source: FactSet
THE WALL STREET JOURNAL.
Bond Funds Sound Retreat From Puerto Rico Talks With
Suitor
Falter at
Weinstein
Sales surge following
Hurricane Maria, as
creditors that had held
out cut their losses
Franklin Resources Inc., one
of Puerto Rico’s largest creditors, sold hundreds of millions
of dollars of the island’s bonds
in recent days, part of an exodus of investors hurt by accelerating losses in the wake of recent hurricanes.
A swath of mutual funds and
hedge funds that held on to a
portion of Puerto Rico’s roughly
$70 billion of bonds even after
the island started bankruptcy
proceedings last year are now
throwing in the towel. That includes Franklin Mutual Advisers
LLC, a Short Hills, New Jerseybased unit of Franklin Resources, which has sold its entire $294 million stake in
Puerto Rico general obligation
bonds, people familiar with the
matter said.
Bonds with a total face value
of $8.24 billion have changed
hands this month through Monday, more than in any full
month since the beginning of
2015, according to Municipal
Securities Rulemaking Board
data. The only time trading approached that level was July
2015, after Puerto Rico’s then
governor said the island’s debts
were “not payable.”
Puerto Rico bonds since 2014
have attracted a variety of distressed-debt investors, especially hedge funds, because of
the bonds’ relatively cheap
prices in otherwise red-hot debt
markets. Some of those funds
are now selling. Varde Funds
and Merced Capital recently
sold their holdings of $172 million in municipal bonds backed
by Puerto Rico’s tax collections
to other existing bondholders,
according to bankruptcy-court
documents and a person familiar with the matter.
RICARDO ARDUENGO/AGENCE FRANCE-PRESSE/GETTY IMAGES (2)
By Matt Wirz,
Andrew Scurria
and Heather Gillers
BY BEN FRITZ
AND DANA CIMILLUCA
Hurricane Maria only worsened Puerto Rico’s dire financial situation. Workers repaired a storm-damaged road on the island last week.
Franklin, widely known under its Franklin Templeton
brand, has been the secondlargest mutual-fund holder of
Puerto Rico bonds, after OppenheimerFunds Inc. The two mutual funds have been part of a
group of large Puerto Rico creditors fighting to recover some
portion of their investments
through a court-supervised restructuring.
Franklin Resource’s main
municipal-bond-fund
arm,
based in San Mateo, Calif., also
owned general obligation bonds
and other types of Puerto Rico
debt worth more than $1 billion
at the end of the second quarter, according to data from
Morningstar Inc. It is unclear
whether any of those investments have changed.
Most mutual-fund managers
are averse to keeping defaulted
bonds through lengthy restructurings, and many sold their
Puerto Rico bonds to hedge
Pay Is Less
Of a Secret
In Millennial
Workforce
INSIDE
Managing a generation of
young people inclined to
share relationship statuses
and meal photos on social
media requires employers to
adjust the way they approach
compensation, experts say.
“Pay and promotions are
not secretive topics anymore,” says Mary Ann Sardone, who consults with large
employers on compensation
issues and leads the workforce-rewards practice at benefits consultant Mercer, a unit
of Marsh & McLennan Cos.
“Companies are spending
more time ensuring their pay
decisions are fair and highlighting career paths under
the assumption that the information is going to be
widely shared,” she said.
Please see PAY page B6
BOEING IS
BULLISH ON
PRODUCTION
BY KELSEY GEE
AVIATION, B3
TRACK YOUR
TURKEY FROM
FARM TO STORE
DIGITAL, B5
On the Hook
Borrowing backed by Puerto Rico’s government funds, sales taxes,
and various public agencies make up the bulk of the island’s debt.
Puerto Rico Sales Tax
Financing Corporation
$15.2 billion
Commonwealth
of Puerto Rico
12.5
Puerto Rico Electric
Power Authority
Puerto Rico Highway
and Transportation
Authority
8.1
4.7
Puerto Rico Public
Buildings Authority
4.1
Puerto Rico Aqueduct
and Sewer Authority
4.0
Note: Graphic shows top government borrowers.
Source: Center for a New Economy
funds, such as Aurelius Capital
Management LP, Autonomy
Capital LP and Canyon Capital
Advisors LLC, as the island’s
financial woes accelerated.
Franklin and Oppenheimer
stood out because they kept
THE WALL STREET JOURNAL.
much of their investments. The
firms have experience working
through restructurings, and
some analysts said they owned
so many Puerto Rico bonds that
it would have been difficult to
quickly liquidate their holdings
without swamping the market.
The new buyers paid as little
as 65 cents on the dollar in this
first bout of selling, betting that
they would recover much more
once Puerto Rico recovered economically.
When Puerto Rico began restructuring its debt last year in
the U.S.’s largest-ever municipal
bankruptcy, investors holding
different types of Puerto Rico
bonds split into factions, battling the island’s government
and each other to get better
treatment. Franklin and Oppenheimer had been seen as power
brokers in the process because
they owned big chunks of the island’s different types of bonds.
The recent selling began this
spring as the island’s government and federal oversight
board took a tougher stance
with creditors in its bankruptcy
process. Hurricane Maria, and
comments by President Donald
Please see BONDS page B2
Weinstein Co.’s talks with
suitor Colony Capital LLC have
stumbled and the troubled studio may seek other bidders as
soon as next week, people
close to the discussions said.
In the wake of co-Chairman
Harvey Weinstein’s firing after
dozens of allegations of sexual
misconduct and assault, Weinstein Co.’s board last week
agreed to enter exclusive talks
for private-equity fund Colony
to buy some or all of its assets.
The exclusivity period ends
the middle of next week, and it
appears increasingly unlikely
the sides will reach agreement,
the people said. In that scenario,
Weinstein Co.’s board and its investment bank, Moelis & Co.,
could talk to other parties, a
number of which have expressed
interest, the people said.
Among issues between
Weinstein Co.’s board and Colony has been price. While the
board has conceded the studio’s value has fallen, it is still
seeking more than Colony is
willing to pay, a person close to
the board said. Weinstein Co.’s
board believes it is worth several hundred million dollars, a
person close to the studio said.
As part of the arrangement
for exclusivity, Colony has said
it would provide Weinstein Co.
with financing to continue operations for the next few
months. However, it hasn’t
provided that money, a person
close to the studio said.
Fortress Investment Group
is in talks to provide a $30 million to $50 million loan to
Weinstein Co., according to the
people familiar with the studio’s financial discussions. That
money would be used for TV
production and film marketing
until a buyer can be found.
HEARD ON THE STREET | By Nathaniel Taplin
Prepare Yourself for an Imperial China
For most of
its history,
China was an
empire led by
a single paramount leader,
backed by a powerful and
opaque bureaucracy. Over
the past 20 years, bureaucracy was alive and well, but
most big political and economic decisions were
reached by consensus.
No more, it seems. On
Wednesday, President Xi Jinping, the most powerful Chinese leader in decades, unveiled a new leadership team
with no clear successor.
That doesn’t necessarily
mean Mr. Xi will stick around
as Communist Party head
past 2022 when he should
step down by previous convention, but it does mean he
will likely be running the
show for quite some time.
In his keynote congress
speech, Mr. Xi said China’s
primary task is now to satisfy the people’s increasing
demands for a “wonderful”
life in the face of incomplete
and unbalanced development. Mr. Xi also strongly reaffirmed the role of state enterprises atop the economy
and said that China should
become a rich, strong and
modern socialist nation by
midcentury.
What does all this mean?
First, it isn’t just about
growth anymore—social concerns will be a higher priority now that China is already
on the cusp of becoming a
“moderately prosperous” society, according to Mr. Xi.
Welfare spending will rise,
meaning a higher fiscal deficit, and environmental enforcement will increase. And
with state firms favored under Mr. Xi, the private sector
may be called upon more to
fund this, potentially through
higher corporate taxes.
Broad Range
15%
Average return on
assets at listed
Chinese firms
10
5
0
Health care
Industrials
2006
IT
Energy
2010
Source: Wind Info
THE WALL STREET JOURNAL.
Unlike previous leaders,
Mr. Xi has the clout to implement his will: forced closures
of polluting, mostly privately
owned factories caught analysts off-guard this year and
have helped force steel and
aluminum prices higher.
Foreign investors may find
opportunities in burgeoning
services sectors such as
health care—one of the few
sectors in which returns on
assets for listed Chinese
firms haven’t sharply fallen
in recent years. Mr. Xi specifically cited services as an
area that should open up
more to foreign investment.
A rising fiscal deficit
paired with stronger support
for big state firms may mean
an even narrower spread between highly rated Chinese
corporate bonds and sovereign debt.
Finally, China will continue becoming more assertive abroad, meaning higher
military spending by wary
Asian neighbors and the U.S.
Mr. Xi seems destined to
stick around for much of
this. Deng Xiaoping, who
oversaw China’s early economic reforms, had a famous
maxim for a modernizing
China: “Hide your strength,
bide your time.”
For both China and Mr. Xi,
the time for hiding is over.
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
B2 | Thursday, October 26, 2017
* ***
INDEX TO BUSINESSES
THE WALL STREET JOURNAL.
BUSINESS & FINANCE
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.
C
Canadian National
Railway ..................... B3
Canyon Capital Advisors
.....................................B1
Cargill..........................B5
Carlyle Group............B11
Chipotle Mexican Grill
...................................B12
Cigna............................B2
Cisco Systems.............B5
Cobra Acquisitions......B2
Coca-Cola.....................B3
Colony Capital.............B1
D
Deutsche Telekom......B7
Dongfeng Motor Group
.....................................B7
DowDuPont.................B5
Dr Pepper Snapple
Group.......................B12
Dynegy ........................ B1
E-F
Emirates Airline.........A3
Express Scripts Holding
...................................B13
Facebook......................B4
Franklin Resources ..... B1
G
General Motors...........B6
Gilead Sciences...........A2
GlaxoSmithKline.........B7
H-I
Harris Associates.......A8
Hodges Capital
Management ............ A9
Intel...........................B13
M
Marsh & McLennan ....B1
Mastercard................B11
Moelis..........................B1
Monsanto....................B5
Morningstar................A1
N
Nintendo......................B4
Novartis.................A2,B7
Nuveen........................A8
P
Permanent Portfolio...A9
Peugeot-Citroen..........B7
Pfizer...........................B7
Private Wealth...........A9
Purdue Pharma...........B2
R
Rite Aid.......................B7
Rockwell Collins..........B3
S
Santa Barbara.............A8
Snap.............................B4
SoftBank Group........B11
Sprint .......................... B7
T
T-Mobile US................B7
Toyota Motor..............B7
Twitter ........................ B4
U
Uber Technologies
............................. B7,B11
United Continental
Holdings....................A3
United Technologies...B3
USAA.........................B11
V-W
Visa............................B11
Vistra Energy..............B1
Walgreens Boots
Alliance.....................B7
Weinstein....................B1
Whitefish Energy
Holdings....................B2
INDEX TO PEOPLE
Storm damage in Utuado, Puerto Rico. Response to the disaster caused by Hurricane Maria has fallen under congressional scrutiny.
A
H
P
Abbasi, Yousef..........B12
Al-Rumayyan, Yasir
Othman...................B11
Allsopp, Stuart ......... B12
Athey, James............B12
Avendaño, Ingrid ........ B7
Haber, John.................B2
Harrison, Hunter.........B3
Hausch, Don................B6
Hofmann, Ivan............B2
Hoshino, Takuya.........A6
Höttges, Tim...............A7
Parets, J.C.................B13
Pearson, Caroline........B2
Prabhu, Vasant ......... B11
B
K
Bajaj, Mohit..............B12
Barra, Mary.................B7
Bosomworth, Andrew
...................................B11
Bradshaw, Myles......B11
Kratsios, Michael........B7
L
D-F
Larsen, Peter .............. B2
Lebovitz, David...........B1
Lee, Kewsong............B11
Legere, John................B7
Leroy, Didier................B7
Lopez, Roxana del Toro
.....................................B7
D'Aniello, Daniel.......B11
de Nysschen, Johan....B6
Diebel, Charlie...........B11
Foote, James...............B3
MacMillan, Bill............B6
Medina, Ana................B7
Mutkin, Laurence......B11
C
Chatillon, Jean-Baptiste
de...............................B7
M
R-S
Rubenstein, David .... B11
Sardone, Mary Ann .... B1
Son, Masayoshi .......... B7
Swedish, Joseph R.....B2
T
Tavares, Carlos ........... B7
V
Vamvakidis, Athanasios
...................................B11
Vogel, Jim.................B12
W
Walmsley, Emma........B7
Weinstein, Harvey......B1
Wetherbee, Christian.B3
Z
Zamot, Noel................B2
Amazon to Unlock
Doors for Deliveries
BY LAURA STEVENS
time letting cleaning people
into their house if they haven’t
been properly vetted,” said
Ivan Hofmann, a former FedEx
Corp. executive and transportation-industry consultant.
Still, he added, that is how innovation works: “You have to
try things that no one else has
tried and see what works.”
In the beginning, the Amazon
Key system will allow in-home
deliveries only from Amazon
Logistics, the company’s delivery network. When an Amazon
delivery-service provider brings
a package to the door, he or she
scans the label with a phone before requesting entry to the
home. The system unlocks the
door automatically—without a
code—and turns on the security
camera as the delivery person
opens the door and sets the
package down inside. After leaving, the delivery person taps the
phone again to relock the door.
The package recipient gets
notifications throughout, including a time-stamped log
and the possibility to watch a
live video of the delivery or a
recording afterward. The recipient can also block the ability to enter the home throughout the process.
“We knew that peace of
mind was going to be critical
here,” Mr. Larsen said.
Customers also can use the
app to generate codes for
guests to enter, and the system will eventually add access
for service providers like dog
walkers and maids.
The Amazon Key package includes the new Amazon Cloud
Cam security camera and a
smart lock made by partner
companies. For now, it is only
available to Prime members,
something the company said
helps add value to the $99 annual subscription fee. The service will initially be available in
37 cities, starting Nov. 8.
PATRICK SEMANSKY/ASSOCIATED PRESS
Amazon.com Inc. wants
you to open the door to your
delivery courier—even when
you aren’t home.
The company on Wednesday
introduced a connected doorlock and security-camera system to let package carriers,
guests and eventually dog walkers in and out of customers’
houses, all controlled via an app.
Dubbed “Amazon Key,” the
new $249.99 system allows
consumers to control and
monitor deliveries and other
services remotely.
“This is not an experiment
for us,” said Peter Larsen, vice
president of delivery technology at Amazon. “We think this
is going to be a fundamental
way that customers shop with
us for years to come.”
Amazon Key plays to the
online retail giant’s packagedelivery ambitions, enabling
indoor drop-offs to customers
as the company handles more
of its own shipments.
Already the company has
added lockers and apartmentbuilding package hubs. Inhome delivery is a natural
next step.
A consequence of the rise in
e-commerce is that “theft is
certainly a problem,” said John
Haber, who works with retailers on supply-chain issues as
chief executive of consultancy
Spend Management Experts.
Theft is particularly pronounced during the holiday
season, when some thieves
dubbed “porch pirates” go from
door to door stealing gifts.
But it remains to be seen
whether consumers are ready
to open their doors to strangers. Transportation industry
experts said that most people
are likely to balk at the idea,
at least at first.
“People have a difficult
MARIO TAMA/GETTY IMAGES
B
Bank of America.......B11
Blackstone Group ..... B11
Boeing..................B3,B12
Bombardier..................B3
Buffalo Funds.............A8
Costco Wholesale.....B11
CSX..............................B3
In-home delivery comes as Amazon handles more of its own shipments.
U.S. Steps In at Puerto Rico Utility
BY ANDREW SCURRIA
U.S. officials supervising
Puerto Rico’s finances are installing an emergency manager at the island’s public
electricity utility, in an attempt to course-correct a disaster response that has come
under congressional scrutiny.
Puerto Rico’s financial oversight board is appointing the
emergency manager to take
over the public electricity monopoly, known as Prepa, with
an eye toward eventual privatization, according to people
familiar with the matter. The
maneuver would largely wrest
control of the utility away
from its board and Gov. Ricardo Rosselló.
More than a month after
Hurricane Maria knocked out
BONDS
Continued from the prior page
Trump hinting at debt forgiveness, upended bondholders’ calculus. Prices of general obligation bonds sold by the Franklin
Mutual Series have been cut in
half since May and now trade
around 30 cents on the dollar,
according to data from the Mu-
power to all of Prepa’s customers, service has been restored to roughly one-quarter.
Prepa’s decisions in the wake
of the storm, including its use
of a tiny Montana-based firm
to rebuild power lines, have
raised concerns among members of Congress about how
the utility was managing federal disaster-relief funds.
The
federal
oversight
board, which Congress created
last year, responded by tapping Noel Zamot, its top official for economic revitalization, to assume control of
Prepa’s reconstruction.
But the governor is expected to resist ceding control
of Prepa, saying in a Wednesday afternoon statement that
managing public corporations
such as Prepa “rests exclu-
sively on democratically
elected officials, appointed under the law of Puerto Rico.”
The situation is the latest
struggle between the governor
and the oversight board over
Puerto Rico’s financial rehabilitation. Before Maria hit, the
two sides were tangling in
court over whether the board
could order furloughs of public employees and impose
other austerity measures.
The oversight board has argued that Prepa should be transitioned from a public monopoly
to a regulated utility to spur investment in its plants and lower
costs for rate payers. The utility
is a flashpoint in the island’s fiscal crisis because power costs
are a drag on economic growth.
Lawmakers are scrutinizing
spending decisions. Members
of Congress from both parties
are calling for investigations
into a $300 million contract
awarded to Whitefish Energy
Holdings LLC, a two-year-old
company that had two full-time
employees when the storm hit
last month. Oklahoma-based
Cobra Acquisitions won a
$200 million contract.
Mr. Rosselló said Tuesday
that after Hurricane Irma hit,
the government had reached
out to contractors and of those,
Whitefish was the only one that
didn’t require substantial cash
upfront. He said he ordered the
island’s Office of Management
and Budget to review Prepa’s
contracting of repair crews and
to report its findings to the
Puerto Rico comptroller.
—Arian Campo-Flores
contributed to this article.
nicipal Securities Rulemaking
Board. Then came Hurricane
Maria in September and the humanitarian and economic devastation left in its wake.
The precipitous drop in
prices has piqued the interest
of some investors who have
avoided Puerto Rico.
AllianceBernstein Holding LP
sold the last of its Puerto Rico
bonds in 2014 believing the island’s debt load was unsustain-
able, making default inevitable,
says Joe Rosenblum, the investment firm’s director of municipal research. “The prices are so
low that it makes us ask the
question whether we’re at the
right levels to get back in.”
But even at current valuations AllianceBernstein remains concerned about the
risk that politics in Puerto Rico
and in Washington will undermine bondholders.
The Senate on Tuesday
passed legislation that extends
emergency credit to Puerto
Rico, and Mr. Trump has criticized corruption in Puerto
Rico and questioned how long
the federal commitment to disaster relief should last.
“You can run as many
spreadsheets as you want but
how do you interpret the politics around it,” Mr. Rosenblum
says.
Purdue
Pharma
Probed on
Painkiller
BY SARA RANDAZZO
AND JEANNE WHALEN
ALEX BRANDON/ASSOCIATED PRESS
A
Advanced Micro Devices
........................... B12,B13
Airbus..........................B3
AllianceBernstein.......A9
Alphabet ................ B4,B5
Amazon.com..........B2,B5
American Express.....B11
Amicus Therapeutics..A2
Anthem................B2,B13
AT&T..........................B12
Aurelius Capital
Management.............B1
Autonomy Capital.......B1
Avalere Health............B2
The HealthCare.gov website, which details health-insurance options under the Affordable Care Act.
ACA Premiums Set to Jump
BY ANNA WILDE MATHEWS
Some consumers who get
health insurance through the
Affordable Care Act exchanges
next year will face sharp premium increases and have
fewer insurer options, though
federal premium subsidies
mean that others will be able
to get cheaper coverage.
The federal HealthCare.gov
website posted new details
Wednesday about what plans
will be available for 2018 under the health law. Open enrollment starts on Nov. 1.
Avalere Health, a consulting firm, said premiums on
middle-tier silver-level exchange plans are set to rise by
an average of 34% in the 39
states that use HealthCare.gov,
based on the new data. The
average increase for bronze
plans is 18%, and for richer,
gold coverage, it is 16%.
The rate increases were
partly driven by the Trump administration’s decision to halt
federal cost-sharing reduction
payments that reimburse insurers for covering low-income
enrollees’ heath costs, said
Caroline Pearson, a senior vice
Anthem’s ACA
Enrollment to Sink
Anthem Inc. expects its enrollment in Affordable Care Act
plans to drop by about 70%
next year, highlighting the extent of the insurer’s pullback
from the business amid what
it said was too much uncertainty about the health-law
marketplaces’ future.
The big insurer’s retreat
from the ACA exchanges had
been known, but the company
added more detail to its projections during a call to discuss
third-quarter earnings. Anthem
will keep offering ACA coverpresident at Avalere.
The rate increases will be
felt most strongly among people who don’t get subsidies.
According to HealthCare.gov, a
40-year-old man in Richmond,
Va., who isn’t eligible for subsidies will be able to choose
from two bronze plans, with
an average monthly premium
of $345, and can consider two
age in just 56 of the 143 regions in states where it sells
individual insurance, down from
“virtually all” of them this year,
and said it now expects the
ACA plans to be profitable in
2018, albeit still short of its
targeted 3%-to-5% margins.
The business will be “relatively
break-even” in 2017, said Chief
Executive Joseph R. Swedish.
Mr. Swedish highlighted
questions around federal costsharing payments as an important factor in Anthem’s decision to exit exchanges. The
Trump administration has now
halted those payments, which
reimburse insurers for reducing
health costs of low-income enrollees.
silver options, at an average
premium of $460. There is
only one exchange insurer,
Cigna Corp., in Richmond.
Last year, a similarly situated man had 14 bronze options, with an average premium of $276, and 15 silver
plans, with the average premium at $322. There were
four exchange insurers.
Purdue Pharma LP said it is
the subject of a probe by federal
prosecutors related to its opioid
painkiller OxyContin, adding to
the mounting litigation the company already faces over its marketing of the addictive drug.
Purdue said it has been cooperating with an investigation by
the U.S. Attorney’s Office in Connecticut and “will continue to do
so until the matter is resolved.”
The drug company added
that it “is committed to being
part of the solution to our nation’s opioid crisis.”
A spokesman for Connecticut U.S. Attorney Deirdre Daly
declined to comment. Ms. Daly,
nominated by former President Barack Obama, is ending
her tenure as U.S. attorney on
Friday.
Bloomberg News reported
the probe Wednesday.
Purdue, a privately held company based in Stamford, Conn.,
has previously faced criminal
scrutiny related to its opioid
sales.
In 2007, Purdue and three of
its executives pleaded guilty in
federal court to criminal charges
of misleading the public about
the addictive qualities of OxyContin between 1995 and 2001.
Purdue and the executives
agreed to pay $634.5 million in
government penalties and costs
to settle civil litigation.
Around the same time, Purdue agreed to pay $19.5 million
to settle similar allegations
made by 26 states and the District of Columbia.
Purdue has been at the center
of recent litigation seeking to
hold makers and distributors of
opioids accountable for widespread drug addiction.
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.
Thursday, October 26, 2017 | B3
* *
BUSINESS NEWS
BY JENNIFER MALONEY
AND AUSTEN HUFFORD
Coca-Cola Co.’s newest diet
soda helped the company keep
its soda volume flat in the latest quarter as it attempts to expand its portfolio of beverages
and hold on to customers who
are abandoning sugary drinks.
Coca-Cola Zero Sugar,
which the Atlanta company
rolled out in the U.S. in August
after introducing it last year
in the U.K., replaced Coke
Zero. Both are sweetened with
aspartame and acesulfame K,
though Zero Sugar is formulated to taste more like the
original Coke.
On Wednesday, the company said the new drink had
performed well in its third
quarter, increasing its volume
in the high single digits. The
company plans to roll out Zero
Sugar to the rest of its key
markets by early next year.
In a call with analysts, Chief
Executive James Quincey acknowledged that Zero Sugar
has cannibalized some sales of
Coke Light and original Coke,
“but in the net, there is additional volume and additional
consumers coming back into
the franchise.”
Coke’s overall beverage volumes in the quarter were flat
world-wide as growth in developing markets essentially offset
weakness in developed markets.
The company saw 1% volume
growth in its juice and dairy
products as well as its tea and
coffee drinks. Soda growth was
flat, while volume for water and
sports drinks fell 1%.
In all, Coke reported earnings of $1.45 billion, or 33
cents a share, up from $1.05
billion, or 24 cents a share, a
year earlier.
On an adjusted basis, earnings grew to 50 cents a share
from 49 cents. Revenue fell
about 15% to $9.08 billion,
largely as a result of the bottling divestitures. Adjusted
revenue grew 4%.
Boeing Presses to Meet Demand
Plane maker had
record deliveries in
latest quarter, but
orders keep piling up
BY DOUG CAMERON
Boeing Co. said Wednesday
that demand for its singleaisle jets could merit a further
rise in production beyond the
35% increase already envisaged by the end of the decade.
Higher output of its 737 jets
and the improved profitability
of its 787 twin-aisle planes
have helped Boeing’s share
price almost double over the
past year, as the company
channeled most of the extra
cash to shareholders in the
form of buybacks and increased dividends.
Boeing Chief Executive Dennis Muilenburg said the 737
was already sold out until the
end of the decade, and there
was pressure from customers
to boost monthly output beyond the 57 jets envisioned in
2019. Boeing recently boosted
output by five jets to 47 a
month and plans to add another five to the rate next
year.
The bullish outlook came as
Boeing reported forecast-beating quarterly earnings and
gave a modest boost to its
profit and cash-flow guidance
for the year.
However, its shares de-
JASON REDMOND/REUTERS
Coke Gains
From New
Diet Soda
Boeing reported forecast-beating quarterly earnings. A production facility in Renton, Wash.
clined as the company booked
another charge on its militarytanker program and offered
few details on how it plans to
reach aggressive targets it has
set for its services business.
Boeing has orders for 5,700
commercial jets representing
seven years of output at
planned production rates.
Rapid growth in passenger
and freight traffic, especially
in developing markets, has
fueled optimism that the longstanding boom-and-bust cycles
of the jet industry are smoothing.
One market Boeing isn’t focusing on is for smaller jets
seating 100 to 150 passengers,
a segment targeted by a
planned partnership between
Airbus SE and Bombardier
Inc. “Recent changes in the
marketplace, discussions between Airbus and Bombardier,
don’t change our plans,” Mr.
Muilenburg said on a quarterly
call.
He continued to rail against
consolidation elsewhere in the
aerospace industry, notably
the planned combination between United Technologies
Corp. and Rockwell Collins
Inc. announced last month.
“Until proven otherwise, we
remain skeptical,” he said of a
deal that would unite two of
Boeing’s largest suppliers, potentially reducing its own leverage to cut its costs and
boost profit margins.
Boeing in July created a
separate services unit, projecting sales this year as high as
$14.5 billion and margins of as
much as 15.5%, well ahead of
its core plane-making and defense units.
The company aims to double its market share of selling
spares and services and boost
revenue from the business to
$50 billion over the next several years.
The company on Wednes-
day said the unit had $3.6 billion in sales in the third quarter, little changed from a year
earlier, but provided no further update on plans for the
business.
The push into services has
irked many Boeing suppliers,
who rely on the segment for
their profits. United Technologies revealed Tuesday that it
doesn’t make any money on
new parts sold to Boeing, just
on spares.
Boeing said profit for the
third quarter fell to $1.85 billion from $2.28 billion in the
year-earlier period, which included a large tax gain. The
latest quarter included $329
million in extra costs for the
KC-46A Pegasus refueling
tanker, adding to the roughly
$1.5 billion in charges already
booked for the program.
Per-share earnings declined
to $3.06 from $3.60 but were
$2.72 after stripping out certain pension items, 6 cents
ahead of consensus estimates.
That marked the sixth quarter
in a row Boeing outpaced expectations as it tallied a record 202 commercial-airliner
deliveries in the period.
Sales rose 2% to $24.3 billion.
The company also added 10
cents a share to the midpoint
of its full-year profit guidance
and another $250 million in
operating cash flow.
On Wednesday, Boeing
shares fell 2.9% to $258.42.
CSX Hires New Operating Chief in Shake-Up
BY PAUL ZIOBRO
CSX Corp. is shaking up its
management ranks, replacing
several top executives and
bringing in a new operating
chief from one of Chief Executive Hunter Harrison’s past
railroading stops.
The changes come as the
railroad, one of two major operators east of the Mississippi
River, has been working to fix
services issues after Mr. Harri-
son took over the company
earlier this year and revamped
its operations.
On Wednesday, CSX said
James Foote is joining as chief
operating officer and will take
over all duties overseen by
longtime CSX executives Cindy
Sanborn, who currently serves
as COO, and Fredrik Eliasson,
currently chief sales and marketing officer. Both CSX executives will resign next month.
Mr. Foote, 63 years old,
served as head of sales and
marketing at Canadian National Railway Co. during Mr.
Harrison’s
stint
turning
around the railroad from 2003
until 2009. More recently, he
served as CEO of Bright Rail
Energy, which is developing a
product to help existing locomotives run on natural gas.
Mr. Harrison said the new
executive’s deep understanding of and experience with his
so-called precision scheduled
railroading philosophy was a
key reason for adding Mr.
Foote as his top lieutenant.
Mr. Harrison’s network
changes led to widespread delays and congestion for most
of the summer months, leading to a hearing before federal
railroad regulators earlier this
month. The CEO blamed some
of the problems on pushback
from some employees as well
as derailments. He has said
the service issues have been
mostly resolved.
Mr. Foote’s appointment
may clear up some, but not all,
questions around who could
one day succeed Mr. Harrison,
who has an undisclosed health
condition that limits his travel
and requires him to frequently
use an oxygen tank.
While Mr. Foote is a clear
No. 2, Citi analyst Christian
Wetherbee said he may not be
the long-term answer to succeed Mr. Harrison.
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
B4 | Thursday, October 26, 2017
THE WALL STREET JOURNAL.
TECHNOLOGY
WSJ.com/Tech
Researchers Sidestep the Editing of DNA
The targeting of
ribonucleic acid may
raise fewer scientific
and ethical risks
A student makes a measurement during a popular Crispr workshop at the Genspace lab in New York City earlier this year.
carrying the DNA’s instructions
to the cells for making the proteins that are essential for life.
Scientists have long believed
RNA to be a good therapeutic
target, but initial work using
the Crispr system has focused
on another enzyme, Cas9, and
User Count Clouds
Social-Media Race
BY GEORGIA WELLS
Social-media
companies
Twitter Inc. and Snap Inc. are
locked in a popularity contest—but it is hard to rank
them because they differ on
how reach with users is best
measured.
Facebook Inc., their bigger
rival, reports the number of
users who check in at least
once a month, currently 2.01
billion, and those who use its
platform at least once a day,
1.32 billion.
But Twitter and Snap’s
Snapchat, which battle to be
considered the second-biggest
network, each picks only one
of the metrics—and it isn’t the
same one.
Twitter, which has been
around longer than Snapchat,
reports how many monthly users it has. When the company
releases third-quarter earnings on Thursday, analysts
surveyed by FactSet expect it
to post 0.5% growth in
monthly users to 329.6 million.
Snap, which first released
its user figures in February
ahead of its initial public of-
fering, discloses the number of
daily users of its network.
A Snap spokesman said
daily usage is a better reflection of engagement. At last
count, Snap had 173 million
daily users.
Twitter has hinted at its
daily use. In late 2016, to provide metrics beyond stagnant
monthly-user growth, Twitter
told investors its daily users
had grown 7%, without revealing the raw number. In the following three quarters, Twitter
updated its daily-user growth,
and flagged it again to investors.
That prompted the Securities and Exchange Commission
to query Twitter as to why it
wasn’t providing the actual
number.
Twitter said in a letter to
the SEC in June that releasing
its daily users could cause
“confusion when comparing
the company with other companies,” such as Facebook,
that calculate daily users differently.
A spokeswoman for Twitter
declined to comment on why
the company hasn’t released
its number of daily users.
on making edits in DNA, which
cause permanent changes to a
person’s genome.
Unlike with DNA, cells constantly produce more RNA. As
a result, RNA editing carries
potentially fewer scientific
and ethical risks. For one
thing, if “off-target” changes
occur, a key area of concern in
editing DNA, the RNA edits
are potentially reversible. Understanding of the biology of
many diseases is also rapidly
changing, and RNA editing allows scientists to revise the
therapy more easily as more
research is done.
“Crispr editing of RNA creates more opportunities for
things we can do therapeutically,” said Elizabeth McNally,
director of the Center for Genetic Medicine at Northwest-
Nintendo Game Is Crossing to Phones
BY TAKASHI MOCHIZUKI
TOKYO—Nintendo Co. will
introduce a smartphone version of its “Animal Crossing”
game, a move that could expand profit from its mobile
business.
The free-to-play game,
which will include an option
to pay a small amount of
money to speed up game
play, will be available from
late November, the Kyotobased company said on
Wednesday.
It is designed for Apple
Inc.’s iPhones and smartphones running the Android
operating
system
from
Google parent Alphabet Inc.
First introduced in 2001 for
the Nintendo 64 console, the
“Animal Crossing” franchise
has attracted a wide range of
consumers, especially women
and children who might otherwise not play games on dedicated hardware.
Rather than shooting enemies or trying to get to the
next level, players enjoy slow
living in a virtual village
through an avatar by catching
bugs, growing flowers or getting mortgages from a raccoon.
Nintendo has released six
RICHARD ATRERO DE GUZMAN/NURPHOTO/ZUMA PRESS
Researchers said they created a new Crispr-based system to edit RNA instead of
DNA in human cells, offering a
way around some of the ethical and scientific challenges
associated with editing the genome and helping advance a
new avenue to potentially
treat diseases.
Scientists at the Broad Institute of MIT and Harvard repurposed the Cas13 enzyme in
the Crispr system to target
and correct disease-causing
mutations in RNA in cells. The
new RNA-editing system,
which the scientists have
dubbed Repair, allows the editing of individual RNA letters,
correcting a common mutation
known to play a role in a number of diseases. They described their research in a paper published in Science
Wednesday.
Crispr, which stands for
clustered regularly interspaced
short palindromic repeats,
serves as the immune system
of bacteria and is used to defend against viral attacks.
RNA, or ribonucleic acid, is
a molecule and is found in all
cells. It serves as a messenger,
CAITLIN OCHS FOR WALL STREET JOURNAL
BY AMY DOCKSER MARCUS
ern University’s Feinberg
School of Medicine, who
wasn’t involved in the study
but is working on efforts to
use the Crispr system to treat
forms of muscular dystrophy
and other conditions.
Scientists have been looking for ways to modulate RNA
to treat diseases. Last month,
Alnylam
Pharmaceuticals,
which said it spent 15 years
developing its therapy, reported positive results in a
trial of a so-called RNA-interference drug, patisiran, which
stops production of a diseasecausing protein to treat a rare
nerve disorder, familial amyloid polyneuropathy. If approved by the Food and Drug
Administration,
patisiran
would be the first commercial
product based on RNA interference.
Crispr offers another approach.
In nature, there are many
different Cas13 enzymes that
bacteria use to target and cut
RNA as part of its defense system. Omar Abudayyeh, one of
the co-first authors of the Science paper, said the researchers spent more than 18
months studying different
Cas13 enzymes to find the
most effective to adapt for
RNA editing in human cells.
The scientists eventually
chose a Cas13 enzyme from
the Prevotella bacteria, then
combined it with a protein
called ADAR2.
The company is looking to expand profit from its mobile business.
titles from the franchise and
sold more than 30 million copies as of March 31, 2017, the
company said.
In the smartphone version
of the game, called “Animal
Crossing: Pocket Camp,”
players can build campgrounds.
Since moving into smartphone games in 2016, Nintendo has released three apps:
“Miitomo,” “Super Mario Run”
and “Fire Emblem Heroes.” So
far, they have made up a relatively small part of the company’s business. In the fiscal
year ended March 2017, Nintendo earned less than ¥20
billion ($176 million) from the
smartphone games out of
¥489 billion in total revenue,
Chief Executive Tatsumi Kimishima said at an analyst
briefing in April.
Analysts said life-simulation games are well suited to
smartphones and predicted
“Animal Crossing” would
boost Nintendo’s mobile revenue.
“We expect the app would
earn ¥18.8 billion by March
next year and ¥48 billion between April 2018 and March
2019,” said Macquarie Capital
Securities analyst David Gibson.
DeNA Co. is Nintendo’s
partner in the smartphone
game business.
Fans have been waiting for
the “Animal Crossing” since
Nintendo first mentioned it in
April 2016.
Ayumi Maehara, who sells
gift catalogs in Tokyo, said
“Animal Crossing” is the only
game she has ever played—
and that was when she was a
child. The 26-year-old, who
prefers to see movies or listen
to music in her leisure time,
said she was interested in the
“Animal Crossing” smartphone
game.
“I begged my parents many
times for a Nintendo GameCube console and an ‘Animal
Crossing’ game for a Christmas present when I was 10
years old,” she said. “That was
all the game experience I have
had. I love what I can do in
the game, like collecting cute
furniture.”
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THE WALL STREET JOURNAL.
Thursday, October 26, 2017 | B5
* *
TECHNOLOGY
BY RACHAEL KING
PATRICK T. FALLON/BLOOMBERG NEWS
Google and Cisco Systems
Inc. on Wednesday said they
are combining their technology to help corporate customers more easily develop software for the cloud.
The two companies need a
boost in the corporate computing market amid increasing
competition from cloud-computing pioneer Amazon.com
Inc. and corporate-tech veteran Microsoft Corp.
Much like how Google’s Android makes it possible to run
mobile apps on a variety of
smartphones and devices, the
two companies’ software will
make it possible for businesses to create apps that run
in their own data centers and
on Google’s servers, creating a
hybrid cloud.
Until recently, big cloud
providers were like walled
Cisco CEO Chuck Robbins.
gardens and different tools
were used to create code for
private data centers.
Google, a unit of Alphabet
Inc., is contributing cloud-development expertise and tools
that run on the Google Cloud
Platform, a suite of services
for the cloud including computing, storage, databases and
analytics. Cisco is bringing
networking, security and infrastructure technologies to
the mix. Both companies are
using open-source technologies to give customers more
flexibility.
“It really does help companies avoid lock-in,” Cisco Chief
Executive Chuck Robbins said
in an interview. Mr. Robbins is
counting on new cloud services to help turn around
Cisco by moving further away
from its legacy hardware.
Cisco’s customers are increasingly using cloud services instead of investing in hardware
for their own data centers.
Google Cloud Chief Executive Diane Greene is leading
the company on an uphill battle in the market for corporate
computing power and storage
accessed online. While Google
is an internet giant, it is a relatively small player in business computing, ranking
fourth in cloud infrastructure
services in 2016 with only
2.3% market share, according
to a September report from
research firm Gartner Inc.
The two companies have
been working together for
much of the past year developing software and working
with corporate customers on
requirements, Ms. Greene
said. They plan to offer early
access for a few customers in
the first half of 2018. The software will be more widely
available in the second half of
next year, she said.
Google is trying to attract
corporate customers using its
cloud-development expertise
and popular software that was
initially developed to manage its own search engine.
Cisco has relationships with
large corporate customers
forged over decades along
with expertise in hyperconverged systems that combine
computing, storage and networking.
The partnership is similar
to the way Cisco rival Dell
Technologies Inc. works with
customers to build cloud software. Dell’s unit, Pivotal,
makes it easier for companies
to get started developing software, acting like an operating
system for the cloud.
CARGILL
Cloud Deal Pairs
Google, Cisco
Blockchain technology is being used to track turkeys from four Texas farms to Cargill processing lines and on to grocery stores.
A Digital Trail for Turkeys
BY JACOB BUNGE
Agricultural conglomerate
Cargill Inc. aims to harness
the technology underlying bitcoin to let shoppers trace their
turkeys from the store to the
farm that raised them.
Cargill is test-driving a digital tool called blockchain that
structures data into a series of
records that can’t be changed
or removed. The cloud-based
data can be shared across a
network of computers, and securely added to by various
participants.
Some food-company executives say such records could
be faster and simpler to use
than the industry’s current
framework, which relies on
software systems as well as
paper records. Besides Cargill,
other companies are also exploring blockchain technology
to track foods or ingredients.
It is an example of the food
world looking to adopt technologies honed in Silicon Valley and Wall Street, with the
aim of making the U.S. food
system more efficient. Agriculture companies such as Monsanto Co. and DowDuPont
Inc. have spent hundreds of
millions of dollars to acquire
startups that crunch data sets
to help farmers better manage
crops and machinery.
The digital currency bitcoin
was the first application built
on blockchain, but the financial industry is also exploring
it as a way to potentially trim
billions of dollars in transaction and processing costs.
Blockchain is also being evaluated for use managing healthcare records and processing
insurance claims.
In the food industry, a blockchain-based approach could
make recalls faster and better
pinpoint where affected products wound up, though much
depends on ingredient suppliers,
food manufacturers, distributors, retailers and food-service
companies adopting a common
system and standardizing data.
In a pilot program for its
Honeysuckle White brand, Minnesota-based Cargill has used
blockchain to build a series of
Food companies look
to adopt technologies
honed in Silicon Valley
and Wall Street.
links that will help track individual turkeys from four Texas
farms to Cargill’s processing
lines and ultimately to grocery
stores. Each turkey in the program will bear a tag with a code
that consumers can punch into
a website, which will take them
to a website detailing the farm
that raised it.
“It’s bringing the digital supply chain to life,” said Debra
Bauler, chief information officer
for Cargill’s North American
protein business.
Cargill and other food companies see broader potential for
the technology. In August, International Business Machines
Corp. said it formed a consortium with food makers such as
Dole Food Co. and Tyson Foods
Inc. and retailers including
Kroger Co. and Wal-Mart Stores
Inc. to figure out where blockchain can improve food safety
and reduce waste.
Darrell Glaser, a farmer
based in Rogers, Texas, who
raises turkeys for Cargill and is
participating in the program,
said he hopes it will reconnect
an increasingly urban U.S. population with the rural areas and
farmers that produce the country’s food.
New Echo: Still in First Place
“Alexa,
which Echo
should I buy?
Echo Dot,
Echo Spot?
Echo Look,
Echo Show? Echo Plus? Or
just plain, vanilla Echo—I
mean, the new one?”
Alexa doesn’t have these
answers (“Sorry, I don’t
know that”), but after testing the new $100 Echo—
herein referred to as “the
Echo”—I have some.
1. The Echo is the smartspeaker sweet spot. It’s the
one to buy if you’re just trying out the idea of living
with an always-on microphone. There is nothing
quite like the simplicity that
started it all. No screens or
cameras—just bark your
commands at Alexa, and
“she” will talk back.
2. If you’re one of the millions of people who bought
the original Echo, no need to
upgrade. The new Echo is a
lot like the old Echo, just
prettier, with slightly better
mics and sound.
3. Software, not hardware,
is the source of speaker
smarts. And since that software mostly lives in the
cloud, not on the device, we
can upgrade speakers less
frequently than we upgrade
our PCs.
Three years since its debut, the Echo’s new hardware may not appear that
different, but the world
around it is. While some remain cautious about placing
always-listening microphones in their homes, many
millions of people are now
comfortable talking to Amazon’s cylindrical computer.
They ask it to do everything
from warming up the car to
planning scuba dives.
This new cylinder, boosted
by a lower price and Alexa’s
evolving smarts, is enough
to maintain Amazon’s lead.
Best thing about the
Echo’s hardware? You can
change its clothes—yes, like
a Barbie doll. You can choose
from six different outfits
(sorry, decorative “shells”)
or order extra ones for $20
F. MARTIN RAMIN/THE WALL STREET JOURNAL
BY JOANNA STERN
Amazon Echo ‘shells’ come in fabric, wood and silver finishes.
to $30. Is your Echo feeling
relaxed? Sandstone. Sophisticated? Oak finish, for sure.
Of course, Google’s Home
had similar fashion sense at
its debut last year.
There are actual engineering improvements, too. The
speaker is about half the size
of the original (going from
tennis-ball can to Jif jar), yet
it’s just as loud—still adequate to fill a kitchen or
bedroom. To really hear the
difference between the old
and new speakers, I had to
listen to a few songs side by
side. The new Dolby signal
processor does deliver a
crisper tone.
Now with seven mics, Alexa’s ears have gotten better—but again, not drastically. The new Echo seemed
quicker to light up to my
voice in quiet environments.
The real reason to buy an
Echo has nothing to do with
good looks or mics. It’s all
about invisible Alexa. In the
AI-assistant race against
Google and Apple, Amazon
has kept its early lead in
some key areas:
A deep ecosystem. With
over 25,000 voice apps, or
“skills,” and multiple hardware partners integrating Alexa, Amazon’s AI platform
has become the most advanced voice operating system. Google has made some
headway with third-party
apps, but Alexa still has the
edge with more news, ridehailing, to-do list and
kitchen-friendly apps.
Google’s Assistant, however,
does excel at answering random questions better. Come
on, Alexa, you should know
wool doesn’t go in the dryer.
A smarter smart home.
Amazon still has Google beat
in smart-home control. Case
in point: Alexa devices work
with more connected thermostat brands than Google
Home does. If you are especially interested in smart
home, check out the $150
Echo Plus. It has all of the
new Echo’s refinements, plus
built-in wireless technology
for home control without the
need for third-party hubs.
A stream of new features. Earlier this month,
Echos got the ability to recognize multiple voices; your
voice becomes a password.
When I want to reorder
breath mints, Alexa knows
me and doesn’t ask for a
PIN. Back in May, Amazon
turned Alexa into a telephone operator: You can call
others with the Alexa app or
with an Echo. In June, Alexa
got the ability to name different kitchen timers (one
for the Brussels sprouts, one
for the chicken). Reminder:
Google Home has a number
of these features as well.
And Siri still can’t set multiple timers.
If you’re looking for a way
to experience Alexa, or to
bring other Echos into your
house, the new Echo is arguably the best way—at least
until December, when the
Echo Spot shows up.
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B6 | Thursday, October 26, 2017
* ***
THE WALL STREET JOURNAL.
MANAGEMENT
The Quest to Make Cadillac Hum Again
President Johan de Nysschen looks toward growth in China as he confronts the auto brand’s falling U.S. market share
BY MIKE COLIAS
volume, then so be it.
How I Work
Continued from page B1
Roughly one-third of U.S.
workers ages 18 to 36 say
they feel comfortable discussing pay with their co-workers,
more than any other age
group and about four times
the rate among baby boomers, ages 53 to 71, according
to a survey of 1,000 employees conducted by personal-finance firm Bankrate Inc.’s TheCashlorette.com. Nearly half
of the millennials surveyed
say they talk about compensation with their friends,
compared with 36% of Americans overall.
When Cameron Feenstra
received a job offer this summer from Prattle Analytics, a
St. Louis-based research firm,
the first thing the 22-year-old
did was call his sister. Although he was willing to take
a below-market salary for the
chance to work at a fastgrowing startup, Mr. Feenstra
wanted to ensure that his offer of $42,000 was a fair annual salary for his role as a
junior quantitative analyst.
After talking about salaries
But disentangling Cadillac’s
operations from Detroit has
proved frustrating at times. In
2015, Mr. de Nysschen jokingly described his first year
running Cadillac as “the longest five years of my life.”
There is a bright spot,
though: Cadillac sales are
booming in China. In an interview, Mr. de Nysschen said he
is counting on growth in
China to expand Cadillac beyond its home market for the
first time.
Edited excerpts:
The Wall Street Journal: You
had a great run at Audi and
were just starting to make
progress at Infiniti when you
with friends and family, and
consulting anonymous career
and salary-sharing websites
such as Glassdoor, Mr. Feenstra decided to negotiate for
more money, even though it
was his first real job in the
field.
“People who don’t ask
around never learn how to
negotiate, because they don’t
know where everyone else is”
in terms of salary as a refer-
Nearly half of the
millennials say they
discuss compensation
with friends.
ence point, Mr. Feenstra said.
He got a pay bump to $45,000
before accepting the offer.
The attitude shift has put
greater pressure on employers to explain why some
workers are paid more than
others and to formalize compensation and promotion
practices,
said
Kristina
Launey, a partner at law firm
Seyfarth Shaw LLP, which
specializes in labor and em-
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To advertise: 800-366-3975 or WSJ.com/classifieds
took the job to rebuild Cadillac. Why?
Mr. de Nysschen: Cadillac is a
truly iconic luxury brand, one
with a 115-year pedigree. To
have the opportunity to steer
that back to greatness was an
opportunity you couldn’t say
no to. And General Motors has
the resources, both in technical engineering and financial,
to push the transformation.
The one rule of social media
every CEO should know?
Think before you post.
What’s your guilty pleasure?
I enjoy motorcycling.
about rapid growth—it’s
about elevating awareness,
it’s about expanding the
dealer network—in a very
forceful manner in a very
short period of time. So we
invested very heavily into a
state-of-the-art manufacturing plant. We’re investing in
building the brand profitably.
It’s consuming a lot of resources.
WSJ: How hard is it to change
the perception of Cadillac?
Mr. de Nysschen: People might
still be thinking about Cadillac
as they would have 15 or 20
years ago. The current vehicles are full of product substance equal to our peers. The
challenge now is to build
awareness of that excellence,
and ensure it is complemented by the retail experience. But great brands are not
built overnight. It will take
time.
WSJ: Given the long time horizon, how do you keep your
people motivated?
Mr. de Nysschen: It starts by
making sure everybody understands the vision and the
long-term aims for the brand
and the tactical execution.
That cascades down to individual goals and objectives
that people are held accountable to. As long as we’re able
to demonstrate that we’re
making progress on those, it’s
easy.
WSJ: Three years in, Cadillac
continues to lose U.S. market
share. What’s holding you
back?
Mr. de Nysschen: An important part of the plan is globalization. For us, the top priority was China. In China, it’s
ployment issues.
A rash of new city and
state ordinances in Philadelphia, New York City and Massachusetts bar hiring managers
from
asking
job
candidates about their salary
history, pressuring companies
to be more transparent about
what they are willing to pay
for many roles.
Bill MacMillan, Prattle cofounder and chief technology
officer, said he is accustomed
to requests like Mr. Feenstra’s. But keeping the 19-person startup on good financial
footing while offering competitive-enough salaries to retain talented workers is a delicate balance, he added.
“I have great people, so I
would love to pay them lots
and lots of money,” said Mr.
MacMillan. Instead, he said,
the firm explains to job seekers that while their salary
may start at a below-market
level, their performance and
pay will typically be reviewed
at least twice a year—at
which point he and other
managers can be “aggressive”
with raises for top performers.
Since Mr. Feenstra began
working at Prattle, he has discussed his pay with several of
his colleagues. The chats have
given him an idea of what to
expect when discussing future
raises, such as when his boss
reviews his performance later
this year.
Cameron Feenstra says ‘People who don’t ask around [about compensation] never learn how to negotiate.’
WSJ: The New York move was
meant to give Cadillac autonomy from GM. How’s that going?
Mr. de Nysschen: We are semiautonomous. We don’t just do
what we feel like. The issue
was to ensure that, in those
areas [including marketing
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$ WSJ: When we get fully autonomous cars, will people
care as much about luxury
brands built on their reputation for performance?
Mr. de Nysschen: We don’t envisage producing Cadillacs
with no driving controls. A
Cadillac will always be an exhilarating driving experience.
But, when you’d like to have
the car do the driving for you,
our vehicle will offer that opportunity. True luxury means
the ability to choose.
WSJ: The U.S. is a different
challenge?
Mr. de Nysschen: In the U.S.,
the focus is not on growth. If
you achieve sales results without looking at the quality of
the business, it’s not sustainable. Three or four years ago,
Cadillac incentive spending
was significantly above the
luxury average. We had to instill this discipline. If in the
near term it means that we
have to walk away from some
AUCTION
WSJ: Cadillac is touting Super
Cruise as the industry’s first
hands-free driving system.
Should that help the brand
image?
Mr. de Nysschen: It begins to
resuscitate Cadillac’s heritage
of innovation.
NICK SCHNELLE FOR THE WALL STREET JOURNAL
PAY
Favorite Cadillac model
of all time?
The 1955 Series 62
convertible.
STEPHANIE AARONSON/THE WALL STREET JOURNAL
Johan de Nysschen became
an auto-industry rock star
while helping transform
Volkswagen AG’s Audi brand
into a luxury powerhouse in
the U.S. from late 2005 to
mid-2012. He next moved to
Nissan Motor
Corp.’s Infiniti
BOSS
brand, before
TALK
General Motors
Co. came calling
in 2014 with another rebuilding project: Cadillac.
Now president of Cadillac,
Mr. de Nysschen viewed the
challenge as “the pinnacle of
my career.” One-third of the
way through what he views as
a decadelong project, the
journey has been less than
smooth as Cadillac’s U.S. market share has sagged and the
company awaits new models
to round out a threadbare
product portfolio.
Mr. de Nysschen, 57 years
old, aims to mold Cadillac in
the image of BMW and other
luxury brands. That means
creating a better dealership
experience and ending big
consumer incentives such as
end-of-month discounts that
often fueled sales.
His strategy also included
relocating Cadillac two years
ago from Detroit to Manhattan’s Soho neighborhood, the
better to give the brand an
identity separate from GM.
and retail strategy] that Cadillac needed 100% mindshare,
those discussions took place
among people who are invested in the brand. If you
didn’t change the location, the
meetings wouldn’t change, the
faces wouldn’t change and
probably the outcomes
wouldn’t change.
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The Wisconsin School of
Business reversed course on a
plan to suspend admissions to
its full-time M.B.A. program
while it reviews the school’s
business strategy, officials said
Wednesday.
“We have heard from our
community
of
students,
alumni, and friends; therefore,
we are going to stop further
discussion of the one-year suspension of the full-time MBA.
We moved too quickly without
the broad consultation and
discussion that our stakeholders can and should expect,”
wrote dean Anne Massey in an
update on the Madison
school’s website.
The decision comes one
week after associate dean Don
Hausch informed the school’s
roughly 200 full-time M.B.A.
students that administrators
were evaluating whether to
shutter the program.
The proposal touched a
nerve among the school’s
more than 42,000 students
and alumni, some of whom
said they first learned of the
administration’s plan from a
Wall Street Journal story last
Friday.
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.
Thursday, October 26, 2017 | B6A
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B6B | Thursday, October 26, 2017
NY
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THE WALL STREET JOURNAL.
Thursday, October 26, 2017 | B7
* *
BUSINESS NEWS
Sprint,
T-Mobile
Silent on
Deal Talks
BARTEK SADOWSKI/BLOOMBERG NEWS
BY RYAN KNUTSON
The management at Opel is being pushed to accelerate efforts toward returning to profitability as Europe’s booming car market starts to plateau. An Opel plant in Poland.
Peugeot’s Mr. Fixit Turns to Opel
Tavares presses for
change at unprofitable
German brand he
acquired from GM
BY WILLIAM BOSTON
BERLIN—After fixing a
French car manufacturer long
derided by the industry as an
eternal also-ran, Carlos Tavares is turning his attention to
the business General Motors
Co. could never fix.
Mr. Tavares, who on
Wednesday unveiled another
quarter of solid growth at PSA
Group, maker of Peugeot and
Citroën cars, is turning up the
pressure on Opel, the unprofitable German brand he acquired from GM this summer.
Over the past three years,
the 59-year-old native of Portugal has taken PSA from near
death to Europe’s most profitable maker of mass-market
cars. The acquisition in August
of GM’s European businesses
Opel and Vauxhall hoisted the
French car maker into the No.
2 spot in Europe by sales behind Volkswagen AG.
Mr. Tavares hasn’t wasted
time in moving to improve returns. In response to sluggish
sales of some Opel and Vauxhall
models, Peugeot said it would
cut nearly a quarter of the 1,800
employees at Vauxhall’s Ellesmere Port plant in the U.K.
Peugeot said it would be in
“a better position to consider
future investments” in the
Vauxhall business once the
terms of any post-Brexit trade
deal between the U.K, and the
European Union become clear.
Mr. Tavares has also been
pressing the German management at Opel to accelerate efforts to return to profit as Europe’s booming car market is
beginning to plateau.
Since the acquisition closed
in August, Peugeot and Opel
managers have been working
on a restructuring plan that
German labor leaders warn
could put thousands of Opel
engineers out of a job.
Peugeot’s path to profitability was painful.
After Mr. Tavares took control in 2013, the company was
bailed out by the French government and Chinese auto
group
Dongfeng
Motor
Group, now its two biggest
shareholders. Peugeot, running big losses amid mounting
labor costs and falling sales,
slashed jobs and production to
cut costs, skidding past a
looming bankruptcy.
But the efforts paid off. On
Wednesday, Peugeot reported a
31% rise in third-quarter revenue
Toyota Cuts Target
For Mexican Factory
Toyota Motor Corp. is scaling back its Mexico production
plans.
The company said Wednesday that it would halve its production target to 100,000 Tacoma pickup trucks at its new
plant in Guanajuato, Mexico.
Toyota will spend $700 million
to complete the plant, which is
under construction, instead of
the originally planned $1 billion.
The reduced production target
to €15 billion ($17.64 billion),
driven by strong growth in all
regions except China and healthy
demand for its new Peugeot
3008 and 5008 sport-utility vehicles. The revenue includes two
months of business from the
Opel Vauxhall division. Without
Opel Vauxhall, Peugeot sales rose
7% to €12.2 billion in the quarter.
Peugeot didn’t report thirdquarter profit. On a call with analysts, Jean-Baptiste de Chatillon, the company’s finance chief,
said losses at Opel Vauxhall
would weigh on Peugeot’s earnings in the second half of the
year, saying, “The recovery plan
will kick off beginning in 2018.”
means Toyota can get Tacomas
rolling off the line more quickly.
The plant will produce its first
trucks in 2019. Its initial target
was for the first half of 2020.
“We don’t have enough
trucks,” said Didier Leroy, a
Toyota executive vice president,
of the reduced production target. Two other truck plants, in
San Antonio and Baja California, Mexico, are at capacity, but
Toyota is still leaving dealers
hungry for more, he said. Toyota estimates it needs 100,000
more Tacomas to meet demand, he said.
This is the second major
change to Toyota’s plan for the
plant. In August, Toyota said
Corolla sedans that were slated
for production in Guanajuato
would instead be built at a U.S.
plant in a joint venture with
Mazda Motor Corp. Toyota is
currently looking for a location
for that operation.
Separately, Toyota said it
would expand a revamped
manufacturing process that it
uses for its core sedan models
world-wide to light trucks, such
as SUVs and pickups.
—Sean McLain
in Tokyo and
Chester Dawson in Detroit
Peugeot’s shares closed
down 1.6% at €20.06 on the
Paris Euronext exchange on
Wednesday.
The company’s share price
has nearly quadrupled since
Mr. Tavares was appointed
chief executive in November
2013.
With Peugeot’s core business profitable again, Mr. Tavares embarked on an expansion strategy earlier this year,
acquiring GM’s German Opel
unit and its British Vauxhall
subsidiary for €2.2 billion.
After years of losses at
Opel, GM Chief Executive Mary
Barra pulled the plug on the
German business after running
it for more than 80 years. On
Tuesday, GM said it took a
$2.3 billion charge related to
the sale of Opel Vauxhall.
Peugeot sells 35 new cars
per employee, compared with
30.4 for an Opel or Vauxhall
employee, according to a recent study by Ferdinand
Dudenhöffer, head of the Center for Automotive Research at
Duisburg-Essen University. He
said that Opel would need
nearly 5,000 fewer employees
if its factories were as productive as Peugeot’s French plants.
—Max Bernhard
contributed to this article.
BUSINESS WATCH
UBER TECHNOLOGIES
Still reeling from charges of
sexism and sexual harassment
by a former software engineer,
Uber Technologies Inc. now
faces a lawsuit from three engineers who allege the ride-hailing
firm systematically underpaid
women and minorities.
The suit, filed in California
Superior Court in San Francisco,
adds to the legal and public relations woes facing Uber.
In the suit, the engineers,
Ana Medina, Roxana del Toro
Lopez and Ingrid Avendaño,
claim Uber’s so-called stack
ranking of workers from lowest
performing to highest set “arbitrary cutoffs” for similarly skilled
workers and ultimately skews in
favor of men and white and
Asian employees. Ms. Lopez, Ms.
Avendaño, who have left Uber,
and Ms. Medina, who is still an
employee, seek back pay for
themselves and others in their
situation, according to the suit.
An Uber spokesman declined
to comment. An attorney for
Ms. Medina and the other engineers said they were not available for comment.
—Greg Bensinger
CHRISTOPHER LEE/BLOOMBERG NEWS
Riding-Hailing Firm
Faces Suit Over Pay
Walgreens’ $30.15 billion in revenue beat a $29.93 billion forecast.
GLAXOSMITHKLINE
Drugmaker to Weigh
Bid for Pfizer Unit
GlaxoSmithKline PLC will
consider a bid for Pfizer Inc.’s
consumer-health business should
the U.S. company put it up for
sale, Chief Executive Emma
Walmsley said Wednesday, leaving the door open to a potential
deal that would further expand
the U.K. company’s portfolio of
pharmacy staples.
Pfizer earlier this month said
it was exploring a sale or spinoff of its consumer-health business, which analysts have said
could fetch more than $10 billion. Glaxo’s consumer-health
arm is one of the world’s largest,
with revenue of £7.19 billion
($9.44 billion) last year.
Glaxo two years ago expanded its consumer-health
business by combining it with
Novartis AG’s consumer-health
unit in a joint venture controlled
by the U.K.-based company.
Glaxo said revenue rose 4% to
£7.84 billion in the three months
to Sept. 30, in line with analysts’
expectations. Adjusted operating
profit, a measure which strips
out one-time items, increased 7%
to £2.47 billion, beating expectations of £2.42 billion. Net profit
jumped 50% to £1.21 billion because of lower costs related to a
$20 billion asset-swap deal with
Novartis, which hurt the same
period last year.
—Denise Roland
WALGREENS BOOTS ALLIANCE
Results Top
Consensus
Walgreens Boots Alliance
Inc. reported fourth-quarter profit
and revenue beat expectations.
Earnings for the latest quarter
fell to $802 million, or 76 cents
per share, from $1.03 billion, or
95 cents per share in the yearearlier period. Adjusted earningsper-share were $1.31, above the
FactSet consensus of $1.21. Revenue rose to $30.15 billion from
$28.64 billion, above the FactSet
consensus of $29.93 billion.
The results include costs related to the company’s Rite Aid
Corp. deal, Walgreens said. Ownership of the Rite Aid stores is
expected to transfer in phases,
with a spring 2018
—Emma Court
Sprint Corp. and T-Mobile
US Inc. both took the unusual
step of canceling their earnings calls this week to avoid
questions about their potential merger, a move seen by
many as a sign they are close
to announcing an agreement.
Yet despite months of talks,
there is still no final deal in
hand, according to people familiar with the matter.
An agreement to combine
the nation’s third- and fourthlargest cellular carriers by
subscribers could be announced within the next few
weeks, the people said, though
it could also still fall apart.
Broad outlines of the deal
are largely settled, the people
said: The transaction will be
all-stock, and T-Mobile parent
company Deutsche Telekom
AG will have control over the
combined company.
T-Mobile Chief Executive
John Legere will run the combined company. Sprint Chairman Masayoshi Son will be cochairman along with Deutsche
Telekom CEO Tim Höttges.
In a twist, the deal will have
no cash breakup fee, the people
said. Instead, if regulators block
the deal, T-Mobile would have
to give Sprint an attractive
roaming deal so Sprint customers can connect to T-Mobile’s
towers where Sprint doesn’t
have coverage, the people said.
The companies are now
working on business- and network-integration plans and
preparing arguments for what
is certain to be intense antitrust scrutiny in Washington.
“Haggling over an agreement is over,” said one person
close to the deal.
Shares of Sprint, which
closed at $7.10, have fallen
nearly 10% in the past month as
it became clear the deal
wouldn’t carry much, if any, of
a premium for Sprint’s investors. The company has a market
value of $28 billion. T-Mobile,
whose shares are down 1.5% in
the past month, has a market
value of about $52 billion.
—Drew FitzGerald
and Dana Mattioli
contributed to this article.
U.S. Drone-Test Plan
Sets Shared Oversight
BY ANDY PASZTOR
The White House has
launched a pilot program expanding commercial drone operations by calling for test
sites featuring shared oversight between federal agencies
and state, local or tribal governments.
The presidential directive
issued Wednesday, while short
on specifics, establishes a
framework for trying out new
regulatory initiatives and
gradually opening up more
airspace nationwide to such
unmanned aircraft, likely including package-delivery services. Creating and learning
lessons from such sites will
help “enhance the safety of
the American public, increase
the efficiency and productivity
of American industry and create tens of thousands of new
American jobs,” according to
the document signed by President Donald Trump.
Within a year, the Federal
Aviation Administration and
the Transportation Department are supposed to work
with operators and local officials to set up locations test-
ing novel air-traffic management networks, along with
proposed radio or cellular systems designed to track low-altitude drones.
The move comes amid increasing industry frustration
with what drone proponents
consider regulatory gridlock
stemming from safety and security concerns throughout
federal agencies.
Industry officials previously
said they expected a handful
to perhaps as many as 10 localized tests to be approved,
but the White House didn’t
provide any details. The
Transportation Department
said it was looking for a minimum of five partnerships.
The initiative was rolled
out as another example of Mr.
Trump’s campaign to make
U.S. companies more competitive versus foreign rivals by
eliminating federal restrictions stifling innovation.
“America’s skies are changing,” with the number of commercial drones projected to increase fivefold by 2021,
Michael Kratsios, deputy chief
of the White House science office, told reporters.
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
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.
Week
Latest ago
Inflation
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
International rates
Latest
Week
ago
52-Week
High
Low
Prime rates
U.S.
Canada
Japan
Week
Latest ago
October 25, 2017
4.25 4.25 4.25 3.50
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
—52-WEEK—
High Low
Policy Rates
Euro zone
Switzerland
Britain
Australia
0.00
0.50
0.25
1.50
0.00
0.50
0.25
1.50
0.00
0.50
0.25
1.50
0.00
0.50
0.25
1.50
1.38
0.15
Overnight repurchase
1.14
U.S.
1.20
Week
Latest ago
High
Low
Bid
Offer
1.75
1.3125
1.1600
1.1700
1.1900
1.005 0.995 1.300 0.240
1.105 1.090 1.180 0.340
1.245 1.240 1.245 0.475
4 weeks
13 weeks
26 weeks
1.00
Federal funds
Effective rate 1.1700 1.1700 1.2000 0.3500
Fannie Mae
30-year mortgage yields
30 days
60 days
Week
Latest ago
0.5625
0.2400
0.3000
0.3200
Secondary market
Discount
1.75
1.3125
1.0500
1.1600
1.1700
Treasury bill auction
U.S. government rates
1.75
1.3125
1.0000
1.1600
1.1700
—52-WEEK—
High Low
3.540 3.441 3.865 2.987
3.573 3.463 3.899 3.021
—52-WEEK—
High Low
Other short-term rates
Latest
Week
ago
52-Week
high
low
Call money
3.00
3.00
3.00
2.25
Commercial paper (AA financial)
90 days
1.27
1.24
1.30
0.62
1.23999
1.37446
1.56444
1.84456
0.53044
0.87567
1.24267
1.55622
Libor
One month
Three month
Six month
One year
1.23999
1.37446
1.56219
1.84456
1.23888
1.36261
1.55055
1.83456
—52-WEEK—
High Low
Euro Libor
One month
Three month
Six month
One year
-0.405
-0.381
-0.321
-0.232
-0.405
-0.375
-0.317
-0.230
-0.376
-0.319
-0.212
-0.071
-0.405
-0.381
-0.321
-0.232
Euro interbank offered rate (Euribor)
One month
Three month
Six month
One year
-0.373
-0.331
-0.274
-0.183
-0.373
-0.329
-0.274
-0.183
-0.366
-0.311
-0.210
-0.069
-0.375
-0.332
-0.275
-0.183
Latest
Value
Traded
52-Week
High
Low
DTCC GCF Repo Index
Treasury
MBS
1.150 27.270 1.366 0.244
1.159 104.770 1.506 0.257
Open Implied
Settle Change Interest Rate
DTCC GCF Repo Index Futures
Treasury Oct
Treasury Nov
Treasury Dec
98.850 -0.005 4427 1.150
98.860 unch. 6378 1.140
98.710 -0.005 1988 1.290
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.
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 | Thursday, October 26, 2017
MARKETS DIGEST
EQUITIES
Dow Jones Industrial Average
S&P 500 Index
Last Year ago
23329.46 t 112.30, or 0.48%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.18 19.79
P/E estimate *
19.58 17.26
Dividend yield
2.20
2.58
All-time high 23441.76, 10/24/17
Nasdaq Composite Index
Last
2557.15 t 11.98, or 0.47%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 24.52 24.41
P/E estimate *
19.56 18.05
Dividend yield
1.95
2.15
All-time high: 2575.21, 10/20/17
Last Year ago
6563.89 t 34.54, or 0.52%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.35
24.13
P/E estimate *
21.29
19.51
Dividend yield
1.10
1.23
All-time high: 6629.05, 10/20/17
Current divisor 0.14523396877348
23500
2560
6600
23000
2530
6500
22500
2500
6400
22000
2470
6300
Session high
t
DOWN
Session open
t
Close
UP
Close
Open
Session low
65-day moving average
65-day moving average
21500
2440
6200
2410
6100
65-day moving average
21000
Bars measure the point change from session's open
20500
July
Aug.
Sept.
Oct.
6000
2380
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
52-Week
Low
High
% chg
% chg
3-yr. ann.
YTD
Dow Jones
Industrial Average
Transportation Avg
Utility Average
Total Stock Market
Barron's 400
-0.48
23451.51 23251.11 23329.46 -112.30
9958.51
9767.69
748.16
737.47
9790.09 -161.42 -1.62
-3.03
-0.40
26605.03 26351.05 26493.79 -130.03
689.31
680.53
685.44 -4.52
-0.49
Nasdaq Stock Market
Nasdaq Composite
6600.64
Nasdaq 100
6087.58
746.34
6517.93
6011.24
-0.65
-0.52
6563.89 -34.54
6055.04 -25.18
23441.76 17888.28
28.2
18.0
10038.13
7967.02
22.9
8.3
4.5
754.80
625.44
12.5
13.1
8.5
26697.94 21514.15
691.35
521.59
19.9
27.8
13.8
13.9
9.1
9.9
6629.05
6122.61
-0.41
5046.37
4660.46
25.0
24.6
11.6
21.9
24.5
Late Trading
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
NYSE NYSE Amer.
Most-active issues in late trading
Company
SPDR S&P 500
13.5
14.4
Volume
(000)
Symbol
SPY
Last
Net chg
18,577.8 255.65
After Hours
% chg
High
0.36
Low
0.14 256.50 255.21
Principal US Mega-Cap USMC
4,200.0
25.01
-0.04
-0.17
25.01
25.01
General Electric
GE
4,042.5
21.55
0.05
0.23
21.79
21.42
Ford Motor
F
3,828.2
12.04
…
unch.
12.09
12.02
VanEck Vectors Gold Miner GDX
3,622.1
22.78
-0.05
-0.22
22.87
22.71
Vipshop Holdings ADR VIPS
iShares MSCI Japan ETF EWJ
3,573.4
8.01
0.04
0.50
8.01
7.97
3,457.5
57.67
…
unch.
57.69
57.65
Bank of America
3,235.6
27.66
0.03
0.11
27.69
27.61
595.3 121.00
19.85
Standard & Poor's
500 Index
2567.40
2544.00
2557.15 -11.98
-0.47
2575.21
2085.18
19.5
14.2
9.2
MidCap 400
SmallCap 600
1829.80
911.19
1808.09
899.77
1820.54 -10.65
906.82 -4.33
-0.58
-0.48
1834.29
918.72
1476.68
703.64
20.2
24.7
9.6
8.2
9.7
12.0
Other Indexes
Russell 2000
1500.42
1482.53
1493.48
-6.94
-0.46
1512.09
1156.89
24.0
10.0
10.1
Westport Fuel Systems WPRT
29.0
3.58
0.23
6.87
3.58
Quotient Ltd.
QTNT
11.0
5.50
0.31
5.97
5.99
5.19
Teradyne Inc
TER
150.6
41.25
2.13
5.44
41.45
39.00
Agnico-Eagle Mines
AEM
39.7
45.80
1.85
4.21
46.25
43.95
NYSE Composite
Value Line
NYSE Arca Biotech
-0.55
12406.20 12280.31 12336.58 -68.42
543.82
536.97
4177.41
4095.05
540.32
12430.52 10289.35
-0.64
-3.50
4117.78 -44.93
-1.08
17.2
11.6
5.2
545.98
455.65
14.9
6.7
4.2
4304.77
2834.14
37.3
33.9
8.3
NYSE Arca Pharma
550.73
545.64
547.50
-4.32
-0.78
560.52
463.78
12.7
13.7
1.6
102.04
100.36
-0.49
-0.48
101.60
73.36
35.3
10.2
PHLX§ Gold/Silver
101.11
13.4
83.65
82.30
-0.90
96.72
73.03
-3.3
4.8
PHLX§ Oil Service
82.61
2.8
130.44
128.20
129.84
-0.42
192.66
117.79
-18.4
1242.21
13.20
1216.99
10.99
802.88 48.6
9.19 -21.1
-1.07
-0.32
1229.27 -16.11 -1.29
0.07
11.23
0.63
Philadelphia Stock Exchange
Region/Country Index
Close
–9.20
–1.23
–0.40
Latest
% chg
YTD
% chg
–0.31
–0.32
–0.16
16.8
17.1
20.4
DJ Americas
615.53
–0.52
–3.20
0.42
Sao Paulo Bovespa 76671.13
320.94
S&P/TSX Comp
15854.77
–0.32
–50.37
S&P/BMV IPC
48876.46 –1280.76 –2.55
Santiago IPSA
4170.83
–31.27 –0.74
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
387.13
389.54
4048.50
5374.89
12953.41
1437.58
22446.39
541.27
1118.13
10153.30
587.82
9084.04
7447.21
–2.20
–1.99
–31.54
–19.91
–59.78
–4.15
–183.18
–2.40
–8.90
–52.40
–0.56
–110.80
–79.33
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
5905.60
Shanghai Composite 3396.90
Hang Seng
28302.89
S&P BSE Sensex
33042.50
Nikkei Stock Avg
21707.62
Straits Times
3343.88
Kospi
2492.50
Weighted
10750.57
8.00
8.65
147.92
435.16
–97.55
9.21
2.01
6.79
NTRI
56.1
51.60
-6.70
-11.49
58.30
48.50
Ultra Clean Holdings
UCTT
157.6
29.15
-3.54
-10.83
32.69
27.00
-29.4 -19.1
Brighthouse Financial
BHF
25.7
56.00
-6.06
-9.76
62.16
56.00
35.6 26.2
-20.0 -11.3
CA Inc
CA
125.7
31.70
-2.43
-7.12
34.13
31.70
Varian Medical Sys
VAR
54.5 100.77
-7.13
-6.61 107.90
99.23
7.1
11.2
12.3
10.5
12.8
–2.3
16.7
12.0
–3.0
8.6
10.0
10.5
4.3
–0.57
–0.51
–0.77
–0.37
–0.46
–0.29
–0.81
–0.44
–0.79
–0.51
–0.10
–1.21
–1.05
0.14
0.26
0.53
1.33
–0.45
13.9
27.3
3.7
7.1
29.4
0.28
0.08
0.06
4.2
9.4
28.6
24.1
13.6
16.1
23.0
16.2
Company
Symbol
Ablynx ADR
DryShips
Macrogenics
Dynegy
VolitionRX
ABLX
Lightpath Techs A
SenesTech
Energy Focus
OFG Bancorp
Hornbeck Offshore
LPTH
LINE ADR
Kraton
Neurotrope
Quotient Ltd.
Cidara Therapeutics
LN
DRYS
MGNX
DYN
VNRX
...
-99.9
-22.5
0.6
-50.1
Acadia Healthcare
Aytu BioScience
trivago ADR
ZAGG Inc
Innoviva
ACHC
3.41
2.98
2.45
9.25
3.76
0.44
0.38
0.30
1.10
0.44
14.81
14.62
13.69
13.50
13.25
3.48
10.69
5.32
14.48
9.07
120.0
...
-39.2
-11.6
-19.8
Chipotle Mexican Grill
RISE Education Cayman ADR
Speedway Motorsports
iRobot
Advanced Micro Devices
CMG
41.45
47.00
4.59
5.19
8.75
4.66
5.02
0.49
0.55
0.90
12.67
11.96
11.95
11.85
11.46
44.15 30.90
-3.3
47.33 24.95
49.3
29.00 0.18 1107.9
7.74 3.22 -13.9
11.85 5.60 -11.0
BioLife Solutions
Digital Ally
Alaska Air Group
Anixter Intl
ZK International Group
BLFS
HOS
CDTX
1.21
1.50
1.51
8.10
1.51
Most Active Stocks
Company
Symbol
Advanced Micro Devices
General Electric
AT&T
SPDR S&P 500
ProSharesUltVIXST
AMD
iPath S&P 500 VIX ST Fut
Bank of America
Finl Select Sector SPDR
Bon-Ton Stores
iShares MSCI Emg Markets
VXX
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52-Week
High
Low
Selected rates
A consumer rate against its
benchmark over the past year
Five-year ARM, Rate
2.00
t
0.00
Citizens Equity First Credit Union
3.00%
Peoria, IL
309-633-3603
Hanscom Federal Credit Union
3.00%
Hanscom AFB, MA
800-656-4328
1
3 6
month(s)
Interest rate
Federal-funds rate target
1.00-1.25 1.00-1.25
Prime rate*
4.25
4.25
Libor, 3-month
1.36
1.37
Money market, annual yield
0.32
0.32
Five-year CD, annual yield
1.46
1.47
30-year mortgage, fixed†
3.89
3.95
15-year mortgage, fixed†
3.19
3.25
Jumbo mortgages, $424,100-plus† 4.33
4.40
Five-year adj mortgage (ARM)† 3.50
3.53
New-car loan, 48-month
3.06
3.02
HELOC, $30,000
5.21
5.19
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.88 l
0.26 l
1.19 l
l
3.57
l
2.85
l
4.23
l
3.13
l
2.85
l
4.57
1.25
4.25
1.37
0.36
1.47
4.33
3.50
4.88
4.03
3.36
5.30
1.00
1.00
1.14
-0.10
-0.04
-0.07
0.08
0.05
-0.04
-0.20
0.75
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
EEM
10%
0
1.50
–5
0.75
–10
0.00
–15
30
Close
Symbol
WSJ Dollar index
s
Euro
s Yen
Country/currency
WSJ
.COM
Volume % chg from Latest Session
(000) 65-day avg Close % chg
US$vs,
YTDchg
Wed
in US$ per US$ (%)
Americas
Argentina peso
.0572 17.4858
Brazil real
.3093 3.2332
Canada dollar
.7813 1.2799
Chile peso
.001588 629.60
Colombia peso
.0003339 2994.84
Ecuador US dollar
1
1
Mexico peso
.0525 19.0403
Peru new sol
.3093 3.234
Uruguay peso
.03370 29.6700
Venezuela b. fuerte .099419 10.0585
10.2
–0.7
–4.8
–6.0
–0.2
unch
–8.2
–3.6
1.1
0.6
Asia-Pacific
2016 2017
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
1450.336
2.181
2.105
2.237
1.482 –2.024 1.677
2.444
3.079
2.640
5.130
2.900
1.953
2.339
3.028
2.590
5.124
2.840
1.881
2.609
3.390
2.790
6.448
3.120
2.516
1.783
2.721
2.090
4.948
2.230
1.677
0.930
2.178
0.159
7.380
0.089
1.864
802.413
5.496
5.401
6.290
5.279
4.689 5.721
1.429
3.712
2.192
4.184
1.966
2.593
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.7703 1.2982
China yuan
.1506 6.6399
Hong Kong dollar
.1281 7.8036
India rupee
.01543 64.815
Indonesia rupiah .0000737 13572
Japan yen
.008792 113.74
Kazakhstan tenge .002999 333.40
Macau pataca
.1244 8.0411
Malaysia ringgit
.2361 4.2355
New Zealand dollar
.6889 1.4516
Pakistan rupee
.00949 105.405
Philippines peso
.0193 51.805
Singapore dollar
.7350 1.3606
South Korea won .0008867 1127.81
Sri Lanka rupee
.0065003 153.84
Taiwan dollar
.03304 30.262
5811
4006
3015
2553
2085
52-Week
High
Low
10.80
-0.14
-5.07
-0.16
-0.13
13.50
30.68
14.65
51.56
20.57
2.30
25.45
12.21
50.07
14.90
1819 32.68 -25.93
1644 19.00 17.36
1462 147.84 -0.30
1446 30.80 -0.06
1376 19.80 3.07
54.34
31.85
150.75
31.04
20.00
30.91
14.36
111.40
23.68
9.23
8.82
29.34
13.85
51.20
15.02
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
–6.5
–4.4
0.6
–4.6
0.3
–2.8
–0.1
1.6
–5.6
0.5
1.0
4.4
–6.0
–6.6
3.6
–6.8
US$vs,
YTDchg
Wed
in US$ per US$ (%)
Country/currency
.03013 33.190 –7.3
.00004400 22725 –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
.04615 21.671 –15.6
.1587 6.3005 –10.9
1.1813 .8466 –10.9
.003810 262.44 –10.8
.009499 105.27 –6.8
.1247 8.0170 –7.3
.2787 3.5878 –14.3
.01731 57.759 –5.7
.1217 8.2183 –9.8
1.0104 .9897 –2.9
.2655 3.7668 6.9
.0373 26.7750 –1.1
1.3262 .7540 –6.9
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6517 .3771 –0.02
.0567 17.6520 –2.6
.2850 3.5086 –8.8
3.3088 .3022 –1.1
2.5987 .3848 –0.04
.2747 3.641 0.01
.2666 3.7505 –0.01
.0712 14.0487 2.6
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 87.16 –0.15–0.18 –6.22
Sources: Tullett Prebon, WSJ Market Data Group
Commodities
COMMODITIES
Wednesday
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
256.0
-68.0
-3.1
1.8
...
U.S.-dollar foreign-exchange rates in late New York trading
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
2.25
7.53 1.43
6.25 1.95
101.43 68.10
88.60 63.40
10.50 6.72
Currencies
Forex Race
5
-24.7
...
6.8
33.1
69.1
* 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
10-yr Treasury, Ryan ALM 1718.820
DJ Corporate
378.244
Aggregate, Barclays Capital 1931.600
High Yield 100, Merrill Lynch 2867.653
Fixed-Rate MBS, Barclays 1978.930
Muni Master, Merrill
521.502
EMBI Global, J.P. Morgan
Company
-13.3
131.2
...
119.7
20.2
Ranked by change from 65-day average*
19,802
3,612
393
318
355
33.54
16.28
19.40
0.31
33.94
Corporate Borrowing Rates and Yields
Treasury, Ryan ALM
ZKIN
ACHC
Acadia Healthcare
MGNX
Macrogenics
IHF
iSh US Healthcare Prov
WisdomTree Europe Hgd SC EUSC
FSBK
First South Bancorp
One year ago
Bond total return index
AXE
153.48
27.92
26.92
1.98
46.82
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
ALK
52-Week
Low
% chg
273.78
11.10
16.80
47.10
6.22
499.00
17.86
23.47
109.78
15.65
5.98 -0.92 -13.33
1.95 -0.30 -13.33
68.92 -10.47 -13.19
66.05 -9.30 -12.34
6.81 -0.95 -12.24
3.03
-0.18
-0.60
37.26
-0.22
BONT
1 2 3 5 710
years
maturity
DGLY
36.35
27.63
26.65
0.84
45.79
3.75%
t
1.00
AMD
190.3
19.4
31.6
12311.2
17.9
3.00
Somerset Savings Bank, SLA
2.88%
Bound Brook, NJ
732-560-1700
IRBT
80,701
77,988
68,100
62,585
57,004
* Volumes of 100,000 shares or more are rounded to the nearest thousand
Wednesday
TRK
277.01 -47.29 -14.58
12.21 -2.06 -14.44
19.76 -3.22 -14.01
65.11 -10.15 -13.49
12.33 -1.92 -13.47
1,702
2,480
4,113
827
322
3.50%
2.88%
800-644-8261
REDU
Cellect Biotechnology ADR APOP
SPDR Bloomberg EM Loc Bd EBND
PennantPark Floatg Rt Cap PFLT
Xtrackers USD HY Corp Bd HYLB
QAT
iSh MSCI Qatar Capped
ThirdFederalSavingsandLoanAssociationofCleveland
2.59%
Cleveland, OH
866-627-1785
Florence Savings Bank
Florence, MA
INVA
15.65
6.22
32.38 21.30
43.03 33.33
257.51 208.38
416.80 15.02
t
5-year adjustablerate mortgage 4.00%
t (ARM)
3.00
ZAGG
54.34 30.91
6.82 0.17
24.27 8.12
18.20 5.15
14.87 8.67
-13.47
-1.78
-3.93
-0.50
6.58
notes and bonds
Bankrate.com avg†:
TRVG
32.68 -11.44 -25.93
3.47 -1.14 -24.77
8.34 -2.42 -22.49
14.50 -2.95 -16.91
11.73 -2.16 -15.55
12.33
21.50
33.49
255.29
17.65
XLF
* 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.
High
185.5
119.1
252.2
35.5
220.6
BAC
NYSE Arca
Latest Session
Close Net chg % chg
165,668
106,447
T
94,215
SPY
85,033
UVXY
83,983
GE
s
U.S. consumer rates
AYTU
Volume Movers
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
Consumer Rates and Returns to Investor
Symbol
...
...
28.63
23.15 799680.00 0.98
31.85 14.36
17.36
11.33 5.84
17.05
5.45 2.08
15.71
OFG
QTNT
Company
5.01
0.94
2.81
1.57
0.33
EFOI
NTRP
High
52-Week
Low
% chg
22.51
5.00
19.00
10.78
2.43
SNES
KRA
Nasdaq
Total volume*2,168,873,816 284,352,573
Adv. volume* 588,395,444 79,217,864
Decl. volume*1,551,348,519 204,511,038
Issues traded
3,040
1,293
Advances
937
223
Declines
1,946
1,052
Unchanged
157
18
New highs
87
43
New lows
70
29
Closing tick
35
5
Closing Arms†
1.27
0.58
Block trades*
9,047
1,465
Percentage Losers
Latest Session
Close Net chg % chg
CREDIT MARKETS & CURRENCIES
N D J FMAM J J A S O
2016 2017
3.35
Nutrisystem
Sources: SIX Financial Information; WSJ Market Data Group
5-year Treasury
note yield
19.62 125.55 101.00
...And losers
Percentage Gainers...
Net chg
2956.05
381.75
257.52
The Global Dow
DJ Global Index
DJ Global ex U.S.
Americas
Brazil
Canada
Mexico
Chile
1245.38
22.51
BWLD
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
World
Percentage gainers…
Buffalo Wild Wings
KBW Bank
PHLX§ Semiconductor
CBOE Volatility
BAC
Total volume* 908,404,885 12,564,729
Adv. volume* 229,185,172 2,457,720
Decl. volume* 669,133,274 9,984,045
Issues traded
3,071
327
Advances
764
89
Declines
2,215
220
Unchanged
92
18
New highs
123
…
New lows
111
12
Closing tick
5
9
Closing Arms†
1.06
1.22
Block trades*
6,917
103
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
598.60
-0.94
185.40
52.18
2.919
1275.40
-0.42
-0.29
-0.055
0.40
-0.16
600.13
527.06
-0.23 195.14
54.45
-0.55
3.93
-1.85
0.03 1346.00
166.50
42.53
2.56
1127.80
% Chg
10.86
YTD
% chg
5.53
-1.76 -3.69
6.10 -2.87
6.88 -21.62
0.84 10.90
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.
Thursday, October 26, 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.
Stock
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.
Wednesday, October 25, 2017
Stock
Net
Sym Close Chg
NYSE
ABB
ABB 25.03 -0.08
AES
AES 10.90 -0.09
Aflac
AFL 84.07 -0.49
AGCO
AGCO 70.43 -1.07
t AT&T
T
33.49 -1.37
AbbottLabs ABT 55.49 0.11
AbbVie
ABBV 91.77 0.08
s Accenture ACN 141.16 2.25
AcuityBrands AYI 156.39 -2.61
Adient
ADNT 83.64 -2.29
t AdvanceAuto AAP 83.31 -0.94
AdvSemiEngg ASX 6.28 0.02
Aegon
AEG 5.95 0.01
AerCap
AER 52.06 -0.84
Aetna
AET 160.12 0.04
AffiliatedMgrs AMG 189.19 -6.40
s AgilentTechs A
67.39 0.07
AgnicoEagle AEM 43.95 -0.29
Agrium
AGU 110.12 -0.37
s AirProducts APD 154.59 0.74
t AlaskaAir ALK 68.92-10.47
Albemarle ALB 138.53 -0.19
Alcoa
AA 49.52 -0.56
AlexandriaRealEst ARE 122.02 -0.05
Alibaba
BABA 170.22 -3.48
Alleghany Y
565.67 2.35
Allegion
ALLE 86.49 -1.99
t Allergan
AGN 180.34 -2.58
AllianceData ADS 235.82 -3.98
AllianceBernstein AB 25.75 0.15
AlliantEnergy LNT 43.25 -0.23
s AllisonTransm ALSN 40.55 0.19
Allstate
ALL 93.28 -0.36
s AllyFinancial ALLY 25.67 1.04
AlticeUSA ATUS 25.40 0.29
Altria
MO 63.79 -0.34
AlumofChina ACH 21.51 0.35
Ambev
ABEV 6.48 -0.05
Ameren
AEE 61.10 -0.63
AmericaMovil AMX 17.81 -1.18
AmericaMovil A AMOV 17.66 -1.11
AmCampus ACC 42.31 0.09
AEP
AEP 73.58 -0.39
s AmericanExpress AXP 93.53 -0.33
AmericanFin AFG 104.73 -0.93
AIG
AIG 65.10 -0.03
AmerTowerREIT AMT 137.33 -0.70
AmerWaterWorks AWK 86.93 0.11
Amerigas APU 44.27 -0.61
s Ameriprise AMP 157.06 3.09
AmerisourceBrgn ABC 82.22 0.37
Ametek
AME 68.51 -0.22
s Amphenol APH 87.25 0.60
AnadarkoPetrol APC 47.68 -0.37
Andeavor ANDV 104.90 -1.85
AB InBev
BUD 121.56 -2.44
AnnalyCap NLY 11.84 -0.20
AnteroResources AR 18.51 -0.45
s Anthem
ANTM 205.71 10.46
Aon
AON 151.65 -0.73
Apache
APA 39.51 -0.63
ApartmtInv AIV 43.70 -0.05
ApolloGlobalMgmt APO 32.28 -0.57
AquaAmerica WTR 35.35 0.14
Aramark
ARMK 42.97 0.21
ArcelorMittal MT 30.06 -0.37
ArcherDaniels ADM 43.44 -0.29
Arconic
ARNC 24.85 0.52
AristaNetworks ANET 189.61 -3.49
ArrowElec ARW 83.39 0.06
AstraZeneca AZN 34.12 -0.09
Athene
ATH 53.15 -1.17
AtmosEnergy ATO 86.04 -0.27
Autohome ATHM 57.27 -1.41
Autoliv
ALV 122.39 -1.53
AutoZone AZO 587.40 1.57
Avalonbay AVB 180.48 0.97
s Avangrid
AGR 49.84 0.34
s AveryDennison AVY 104.05 5.14
Stock
Net
Sym Close Chg
AxaltaCoating AXTA 29.06 0.01
BB&T
BBT 47.78 0.20
BCE
BCE 46.34 -0.27
BHPBilliton BHP 40.75 -0.78
BHPBilliton BBL 35.92 -0.71
BP
BP 38.79 -0.21
BRF
BRFS 13.75 0.11
t BT Group
BT 17.83 -0.32
BWX Tech BWXT 60.58 -1.23
t BakerHughes BHGE 30.07 -0.62
Ball
BLL 42.45 -0.47
BancoBilbaoViz BBVA 8.57 0.03
BancodeChile BCH 91.26 0.55
BancoMacro BMA 134.09 -0.01
BcoSantChile BSAC 30.58 0.10
BancoSantander SAN 6.63 0.04
BanColombia CIB 42.48 -0.19
s BankofAmerica BAC 27.63 -0.05
BankofMontreal BMO 77.72 -0.59
BankNY Mellon BK 51.75 -1.13
BkNovaScotia BNS 64.25 -0.40
Barclays
BCS 10.44 0.07
Bard CR
BCR 328.03 -0.09
BarrickGold ABX 15.75 -0.10
s BaxterIntl BAX 64.38 0.03
BectonDickinson BDX 210.39 -0.58
Berkley
WRB 70.29 0.17
BerkHathwy A BRK.A 283035-1535.00
BerkHathwy B BRK.B 188.71 -1.07
s BerryGlobal BERY 59.96 0.20
BestBuy
BBY 55.17 -1.48
Bio-RadLab A BIO 222.22 0.25
BlackKnight BKI 44.95 0.25
BlackBerry BB 10.75 -0.27
BlackRock BLK 469.15 -4.57
BlackstoneGroup BX 34.17 -0.42
t BoardwalkPipe BWP 14.27 -0.47
Boeing
BA 258.42 -7.58
BorgWarner BWA 51.66 -1.09
BostonProperties BXP 121.49 0.07
BostonScientific BSX 29.61 -0.19
Braskem
BAK 29.33 0.14
Bristol-Myers BMY 64.00 0.35
BritishAmTob BTI 64.53 1.27
BroadridgeFinl BR 84.26 -0.12
BrookfieldMgt BAM 41.61 -0.82
BrookfieldInfr BIP 42.59 -0.60
Brown&Brown BRO 49.21 -0.24
Brown-Forman A BF.A 56.09 -0.47
Brown-Forman B BF.B 55.66 -0.25
t BuckeyePtrs BPL 50.89 -1.19
Bunge
BG 70.02 -0.71
BurlingtonStores BURL 88.98 -0.14
CBD Pao
CBD 24.59
...
CBRE Group CBG 39.00 -0.52
CBS A
CBS.A 58.18 0.46
CBS B
CBS 57.23 0.29
s CF Industries CF 37.68 0.07
CGI Group GIB 53.09 -0.17
CIT Group CIT 46.50 -1.01
CMS Energy CMS 47.97 -0.45
CNA Fin
CNA 50.34 -0.20
CNOOC
CEO 128.80 1.65
CPFLEnergia CPL 16.94 0.09
CRH
CRH 37.07 -0.10
CVS Health CVS 75.53 -0.48
CabotOil
COG 24.42 -0.50
CamdenProperty CPT 91.23 -0.08
CampbellSoup CPB 46.21 0.08
CIBC
CM 88.79 -1.10
CanNtlRlwy CNI 81.44 -1.70
CanNaturalRes CNQ 32.48 -0.07
CanPacRlwy CP 174.23 -2.93
Canon
CAJ 36.38 -0.47
CapitalOne COF 90.82 1.30
CardinalHealth CAH 67.05 0.61
Carlisle
CSL 110.74 5.12
CarMax
KMX 74.17 -0.61
Carnival
CCL 65.84 -0.58
Carnival
CUK 66.18 -0.13
Caterpillar CAT 136.84 -1.40
Celanese A CE 104.46 -1.29
Cemex
CX
8.10 -0.12
Stock
Net
Sym Close Chg
CenovusEnergy CVE 9.40 -0.07
Centene
CNC 90.76 -2.26
CenterPointEner CNP 29.38 -0.21
CentraisElBras EBR 7.22 0.28
CenturyLink CTL 18.53 -0.21
Chemours CC 56.82 -0.13
Chevron
CVX 118.44 -0.79
ChinaEastrnAir CEA 25.24 0.10
ChinaLifeIns LFC 16.11 -0.07
t ChinaMobile CHL 50.23 -0.31
ChinaPetrol SNP 72.72 -0.37
ChinaSoAirlines ZNH 35.10 0.44
ChinaTelecom CHA 51.43 0.34
ChinaUnicom CHU 14.36 -0.14
t Chipotle
CMG 277.01-47.29
Chubb
CB 154.16 -0.24
ChunghwaTelecom CHT 33.74 0.01
Church&Dwight CHD 45.76 0.04
s Cigna
CI 195.70 1.81
CimarexEnergy XEC 113.04 -0.31
Citigroup
C
73.62 -0.62
CitizensFin CFG 38.03 -0.34
Clorox
CLX 127.09 -0.12
Coach
COH 40.26
...
Coca-Cola KO 46.05 -0.13
Coca-Cola Euro CCE 41.17 -0.52
Coca-Cola Femsa KOF 69.24 -0.73
Colgate-Palmolive CL 71.42 -0.42
ColonyNorthStar CLNS 12.54 -0.04
s Comerica
CMA 78.88 -0.68
SABESP
SBS 9.36 -0.08
ConagraBrands CAG 33.93 -0.24
ConchoRscs CXO 130.53 -0.13
ConocoPhillips COP 49.96 -1.03
ConEd
ED 85.33 -0.43
ConstBrands A STZ 212.48 -0.17
s ConstBrands B STZ.B212.79 0.25
ContinentalRscs CLR 37.74 0.12
Cooper
COO 237.90 -1.65
Corning
GLW 31.54 -0.40
t Coty
COTY 15.25 -0.10
Credicorp
BAP 206.41 -1.78
CreditSuisse CS 16.12 -0.05
CrestwoodEquity CEQP 23.85 -0.05
CrownCastle CCI 104.12 0.06
CrownHoldings CCK 59.48 -0.43
s Cullen/Frost CFR 99.52 0.62
Cummins
CMI 176.92 -1.48
DTE Energy DTE 110.77 -1.93
DXC Tech DXC 90.63 -0.78
Danaher
DHR 90.65 -0.30
Darden
DRI 81.81 -0.83
DaVita
DVA 62.60 0.10
Deere
DE 130.56 -0.46
s DellTechnologies DVMT 82.60 -0.65
DelphiAutomotive DLPH 97.40 -0.87
DeltaAir
DAL 52.24 -0.94
DeutscheBank DB 17.12 -0.06
DevonEnergy DVN 34.35 -0.49
Diageo
DEO 135.08 0.29
DigitalRealty DLR 122.98 1.79
DiscoverFinSvcs DFS 65.15 -2.24
Disney
DIS 97.80 -0.49
s DolbyLab
DLB 59.98 -0.79
DollarGeneral DG 83.97 -0.13
DominionEner D
79.68 -0.67
Domino's
DPZ 185.75 1.91
Donaldson DCI 47.68 -0.09
DouglasEmmett DEI 39.47 -0.07
Dover
DOV 95.00 -0.89
DowDuPont DWDP 71.09 -0.77
DrPepperSnap DPS 85.52 -4.19
DrReddy'sLab RDY 35.74 -0.24
DukeEnergy DUK 87.75 -0.24
DukeRealty DRE 28.79 0.15
ENI
E
32.67 -0.14
EOG Rscs EOG 96.15 -0.33
EQT
EQT 60.86 -3.19
EQT Midstream EQM 69.85 -1.41
EastmanChem EMN 90.63 0.16
Eaton
ETN 78.98 -0.60
EatonVance EV 50.74 -0.97
Ecolab
ECL 132.49 0.19
New Highs and Lows | WSJ.com/newhighs
Wednesday, October 25, 2017
Stock
52-Wk %
Sym Hi/Lo Chg Stock
NYSE highs - 123
Accenture
ACN
AgilentTechs
A
AirProducts
APD
AllisonTransm ALSN
AllyFinancial
ALLY
AmericanExpress AXP
Ameriprise
AMP
Amphenol
APH
Anthem
ANTM
AppliedIndlTechs AIT
AshlandGlobal ASH
Avangrid
AGR
AveryDennison AVY
BBX CapitalA BBX
BancCA PfdE BANCpE
BankofAmWtA BAC.WS.A
BankofAmerica BAC
BankofButterfield NTB
BaxterIntl
BAX
BeazerHomes BZH
BerryGlobal
BERY
CACI Intl
CACI
CF Industries CF
CNO Financial CNO
CalAtlantic
CAA
Cigna
CI
Comerica
CMA
CommunityHlthcr CHCT
ConstBrands B STZ.B
Cubic
CUB
Cullen/Frost
CFR
CurtissWright CW
DaqoNewEnergy DQ
DellTechnologies DVMT
DolbyLab
DLB
EmpresaDisCom EDN
Entergy
ETR
Exelon
EXC
FB Financial
FBK
FactSet
FDS
FirstAmerFin FAF
Flagstar
FBC
Fortive
FTV
GTT Comm
GTT
GoDaddy
GDDY
GraceWR
GRA
Graco
GGG
GreenDot
GDOT
GrubHub
GRUB
Haemonetic
HAE
Heico A
HEI.A
HomeDepot
HD
HoraceMannEdu HMN
DR Horton
DHI
HoulihanLokey HLI
ING Groep
ING
IRSA
IRS
IDEX
IEX
IndepRealty
IRT
iStarPfdD
STARpD
141.24
68.52
154.82
40.96
25.85
94.24
159.57
88.19
209.74
70.05
68.00
50.07
104.50
8.20
27.67
15.79
27.92
37.57
65.00
20.42
60.27
147.31
38.01
25.07
39.93
195.84
80.25
27.99
212.79
57.05
100.20
114.94
37.74
83.35
61.45
44.51
86.49
40.18
40.43
188.68
51.38
37.38
73.37
34.75
46.09
75.26
129.74
56.47
57.93
46.95
78.35
166.95
45.45
43.82
44.15
19.01
29.50
127.18
10.63
25.58
1.6
0.1
0.5
0.5
4.2
-0.4
2.0
0.7
5.4
-1.4
...
0.7
5.2
1.5
2.0
-0.2
-0.2
2.0
...
-1.5
0.3
0.9
0.2
0.5
0.6
0.9
-0.9
...
0.1
1.3
0.6
0.5
-2.6
-0.8
-1.3
-0.8
0.4
0.3
1.6
0.5
0.2
1.6
-1.1
2.5
0.1
6.3
-1.0
1.9
11.2
0.6
1.6
...
6.3
-0.1
3.5
0.1
-1.7
0.1
-0.3
0.2
52-Wk %
Sym Hi/Lo Chg Stock
JPMorganWt JPM.WS
JPMorganChase JPM
KB Home
KBH
KKR
KKR
Kemper
KMPR
KeysightTechs KEYS
Kraton
KRA
Leidos
LDOS
Lennar B
LEN.B
Lennar A
LEN
LincolnNational LNC
MI Homes
MHO
ManchesterUnited MANU
MarriottVacations VAC
Maximus
MMS
MeritageHomes MTH
MettlerToledo MTD
MicroFocus
MFGP
MorganStanley MS
NatlRetailPropPfE NNNpE
NortelInversora NTL
NorthropGrumman NOC
NuvDow30Dyn DIAX
PNC Fin
PNC
PaycomSoftware PAYC
PerkinElmer
PKI
Petrobras
PZE
PolyOne
POL
PrefApartment APTS
PulteGroup
PHM
QTS Realty
QTS
RobertHalf
RHI
RoyalDutchB RDS.B
Salesforce.com CRM
SeaspanPfdG SSWpG
SeaspanPfdD SSWpD
Statoil
STO
STMicroelec
STM
Stoneridge
SRI
TE Connectivity TEL
Telus
TU
TRI Pointe
TPH
TelecomArgentina TEO
TeledyneTech TDY
ThermoFisherSci TMO
TidewaterWtSeriesB TDW.WS.B
Timken
TKR
Toll Bros
TOL
Torchmark
TMK
TotalSystem
TSS
UnitedHealth UNH
UnumGroup
UNM
UsanaHealth USNA
Visa
V
VenatorMaterials VNTR
Vishay
VSH
VistraEnergy VST
VMware
VMW
WarriorMetCoal HCC
Waters
WAT
Watsco
WSO
WestAllianceBcp WAL
ZionsBancorpNts ZBK
60.05
101.45
27.77
20.77
61.15
43.24
47.33
63.68
49.70
58.96
77.34
30.89
18.50
130.84
66.65
50.10
672.69
33.61
51.52
26.35
42.46
306.61
17.74
139.23
80.77
72.27
13.91
44.60
20.51
29.80
58.79
53.49
63.89
99.63
25.20
25.19
20.77
21.37
22.81
89.27
36.95
16.94
34.01
168.34
200.99
2.65
53.10
45.37
86.50
71.63
209.14
52.93
71.00
110.61
25.24
21.80
20.44
119.76
27.95
191.05
165.96
56.67
31.12
0.4
0.1
-2.4
-1.1
1.0
0.2
12.0
2.4
-0.4
-0.1
-1.0
4.0
-0.3
0.9
-0.9
-1.4
-0.6
2.0
-1.1
...
1.9
3.6
-0.9
-0.3
-0.4
-0.3
-1.7
5.7
0.3
1.9
4.7
1.4
-0.4
0.9
-0.1
0.3
-0.3
-1.0
0.6
-0.2
2.2
6.2
-0.1
...
2.7
0.8
-4.8
0.3
0.8
3.3
-0.3
-1.2
10.9
1.0
1.4
-0.7
3.8
-0.6
-1.2
1.4
1.2
0.5
-2.4
52-Wk %
Sym Hi/Lo Chg
NYSE lows - 111
AT&T
T
AdvanceAuto AAP
AdvantageOil AAV
AlaskaAir
ALK
AllerganPfdA AGNpA
Allergan
AGN
AllianzGIConv24 CBH
AquaVenture WAAS
ArlingtonAsset AI
BT Group
BT
BakerHughes BHGE
BlueApron
APRN
BoardwalkPipe BWP
BrookdaleSrLiving BKD
BuckeyePtrs
BPL
CONE Midstream CNNX
CapsteadMtg CMO
CenterCoastMLP CEN
ChesapeakeEner CHK
ChinaMobile
CHL
Chipotle
CMG
ClearBridgeAmEn CBA
ClearBridgeEnMLPFd CEM
ClearbridgeEngyMLP EMO
ClearbridgeEnMLPTR CTR
Cloudera
CLDR
Corts JCPen JBR JBR
Coty
COTY
CushingTotRetFd SRV
DDR
DDR
DeanFoods
DF
DeutscheMuniIncmTr KTF
Duff&PhelpsSelEn DSE
EP Energy
EPE
EastmanKodak KODK
EastmanKodakWt KODK.WS.A
EdgewellPersonal EPC
EducationRealty EDR
EldoradoGold EGO
EnergyTransfer ETP
FedRealtyInvPfdC FRTpC
FidcryClymrOppFd FMO
FT MLP&Energy FEI
FootLocker
FL
GGP
GGP
GabelliMultPfdE GGTpE
GeneralElec
GE
GenesisEnergy GEL
GS MLPEnergyRen GER
GS MLP IncmOpp GMZ
GranitePointMtg GPMT
HCP
HCP
HormelFoods HRL
Intrexon
XON
JuniperNetworks JNPR
KKRIncomeOppsRt KIOr
KayneAnderson KED
KayneAnMLPInv KYN
Kellogg
K
KeyEnergySvcs KEG
Ecopetrol
EC
9.97 0.06
EdisonInt
EIX 79.01 -0.86
EdwardsLife EW 103.33-10.92
EmersonElectric EMR 66.50 -0.24
EnbridgeEnPtrs EEP 14.37 -0.28
Enbridge
ENB 38.01 -0.85
Encana
ECA 10.60 -0.19
EnelAmericas ENIA 10.61 0.04
EnelChile
ENIC 5.94 0.03
EnelGenChile EOCC 27.04 0.28
EnergyTrfrEquity ETE 16.10 -0.72
t EnergyTransfer ETP 16.39 -0.55
s Entergy
ETR 86.34 0.36
EnterpriseProd EPD 24.36 -0.80
Equifax
EFX 107.54 -1.26
EquityLife ELS 87.38 -0.44
EquityResdntl EQR 66.88 1.09
EssexProp ESS 257.63 0.09
EsteeLauder EL 111.12 0.88
EverestRe RE 232.94 -1.34
EversourceEner ES 62.33 -0.09
s Exelon
EXC 40.07 0.11
ExtraSpaceSt EXR 80.65 0.24
ExxonMobil XOM 83.17 -0.30
FMC
FMC 93.21 -0.96
s FactSet
FDS 188.20 0.93
FederalRealty FRT 123.27 -1.63
FedEx
FDX 225.50 -0.34
Ferrari
RACE 114.72 0.13
FiatChrysler FCAU 17.09 -0.36
FibriaCelulose FBR 16.19 -0.27
FidelityNatlFin FNF 35.35 -0.05
FNFV Group FNFV 17.60 0.05
FidelityNtlInfo FIS 95.53 0.26
58.com
WUBA 63.03 -1.28
FirstData
FDC 18.78 -0.12
FirstRepBank FRC 99.57 0.09
FirstEnergy FE 31.85 -0.16
FleetCorTech FLT 164.40 0.57
Flowserve FLS 44.43 -0.41
Fluor
FLR 42.50 -0.22
FomentoEconMex FMX 89.19 0.19
FordMotor F
12.04 -0.15
ForestCIty A FCE.A 24.72 -0.11
Fortis
FTS 36.57 -0.19
s Fortive
FTV 72.47 -0.84
FortBrandsHome FBHS 66.88 -1.24
Franco-Nevada FNV 78.96 -1.30
FranklinRscs BEN 44.15 -0.65
Freeport-McMoRan FCX 14.70 -0.53
FreseniusMed FMS 48.59 -0.35
t GGP
GGP 20.60 -0.28
Gallagher AJG 62.54 -0.29
Gap
GPS 27.11 -0.07
Gartner
IT 124.07 1.05
Gazit-Globe GZT 9.68 -0.07
GeneralDynamics GD 207.25 -4.83
t GeneralElec GE 21.50 -0.39
GeneralMills GIS 51.53 -0.26
GeneralMotors GM 45.12 -1.36
Genpact
G
29.71 0.17
GenuineParts GPC 88.46 -0.45
Gerdau
GGB 3.69 0.04
Gildan
GIL 31.19 -0.30
GlaxoSmithKline GSK 38.19 -2.29
GlobalPayments GPN 99.52 1.78
s GoDaddy
GDDY 45.44 0.04
Goldcorp
GG 12.88 -0.06
GoldmanSachs GS 241.71 -3.13
s Graco
GGG 127.92 -1.28
Grainger
GWW197.13 -1.22
GreatPlainsEner GXP 32.15 0.14
GpoAvalAcciones AVAL 8.79 -0.03
GpFinSantandMex BSMX 8.99 0.03
GrupoTelevisa TV 23.75 0.17
GuidewireSoftware GWRE 77.38 -0.81
HCA Healthcare HCA 79.20 -0.37
t HCP
HCP 25.36 -0.27
HDFC Bank HDB 89.43 -5.29
HP
HPQ 21.67 -0.28
HSBC
HSBC 49.19 0.15
Halliburton HAL 41.46 0.09
Hanesbrands HBI 22.78 -0.33
HarleyDavidson HOG 48.89 -0.58
Harris
HRS 136.56 -0.40
HartfordFinl HIG 54.84 -0.04
HealthcareAmer HTA 29.68 0.13
Heico
HEI 92.24 0.51
s Heico A
HEI.A 78.30 1.25
Helmerich&Payne HP 51.31 -1.14
Herbalife
HLF 71.90 -0.76
Hershey
HSY 108.60 -0.76
Hess
HES 42.21 -1.85
HewlettPackard HPE 14.08 -0.23
Hilton
HLT 71.32 0.18
HollyFrontier HFC 36.30 -0.10
s HomeDepot HD 166.07 0.04
HondaMotor HMC 30.46 -0.28
Honeywell HON 145.99 -0.13
t HormelFoods HRL 30.32 0.05
s DR Horton DHI 43.26 -0.06
HostHotels HST 19.35 -0.31
HuanengPower HNP 26.47 0.97
Hubbell
HUBB 125.99 0.64
Humana
HUM 248.36 1.87
HuntingtonIngalls HII 234.00 -1.93
Huntsman HUN 29.65 -0.07
HyattHotels H
61.73 -0.21
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.
33.33 -3.9
81.82 -1.1
5.26 -2.8
68.10 -13.2
647.06 -1.2
178.35 -1.4
9.61 -0.3
12.50 0.9
11.40 -6.6
17.77 -1.8
30.00 -2.0
4.83 -1.4
14.21 -3.2
9.68 -2.5
50.14 -2.3
15.25 -0.8
9.22 -1.6
9.28 -4.2
3.45 -2.7
50.00 -0.6
273.78 -14.6
7.58 -3.2
13.19 -3.5
10.72 -3.1
11.25 -2.4
14.91 -5.8
12.29 -1.1
15.16 -0.7
10.80 -3.6
7.87 -3.5
9.90 -1.6
12.08 -0.3
5.46 -4.5
2.38 -4.7
5.75 -8.0
0.02 -70.0
64.88 -0.4
35.46 -0.7
1.29 -12.2
16.10 -3.2
24.01 -0.5
11.59 -2.7
14.12 -3.3
29.89 0.5
20.20 -1.3
24.52 -0.7
21.30 -1.8
22.72 -2.5
5.77 -4.0
8.18 -3.2
18.06 -0.5
25.13 -1.1
29.75 0.2
16.28 -1.9
23.87 -6.1
0.34 -32.2
15.23 -3.5
15.32 -3.5
60.01 -1.2
9.11 8.2
AdvShDorseyADR AADR
ColumbiaIndiaInfr INXX
DirexFinlBull3 FAS
DirexHmbldrBull3 NAIL
ETFMG PrimeMob IPAY
S&P2xDivAristoETN SDYL
E-TRACS IndMtl UBM
FidelityMSCIFinls FNCL
FidelityMSCIMatls FMAT
FidelityMomFactor FDMO
FinSelSectorSPDR XLF
GuggS&P500EWFin RYF
GuggS&P500EWMat RTM
GuggGlbTimber CUT
GuggSolar
TAN
InspireGlblHope BLES
iShCurrHdgNikk400 HJPX
iShUSFinlServices IYG
iShUS Finls
IYF
Fund
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. rRedemption 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
American Century Inv
43.74
Ultra
American Funds Cl A
31.39
AmcpA p
40.88
AMutlA p
27.18
BalA p
12.91
BondA p
62.58
CapIBA p
51.65
CapWGrA
EupacA p
56.69
FdInvA p
62.49
50.29
GwthA p
10.49
HI TrA p
40.77
ICAA p
23.35
IncoA p
44.40
N PerA p
46.66
NEcoA p
65.70
NwWrldA
55.84
SmCpA p
13.01
TxExA p
45.04
WshA p
Baird Funds
NA
AggBdInst
CorBdInst
11.20
BlackRock Funds A
GlblAlloc p
20.17
BlackRock Funds Inst
EqtyDivd
22.99
20.29
GlblAlloc
HiYldBd
-0.21 25.4 StratIncOpptyIns
-0.13
-0.23
-0.07
-0.01
-0.26
-0.17
-0.07
-0.22
-0.18
-0.02
-0.20
-0.10
-0.11
-0.14
-0.13
-0.20
-0.02
-0.16
17.0
12.6
11.2
3.0
11.3
19.7
28.3
16.9
19.6
6.8
13.8
10.1
25.7
29.8
27.7
21.4
4.7
14.2
...
-0.05
NA
3.9
-0.07 10.9
-0.07 12.6
-0.08 11.1
7.86 -0.01
9.99
...
Bridge Builder Trust
CoreBond
10.16 -0.01
Dimensional Fds
5GlbFxdInc
11.01
...
30.24 +0.04
EmgMktVa
EmMktCorEq 22.29 -0.03
14.11 -0.04
IntlCoreEq
19.79 -0.07
IntlVal
21.32 -0.03
IntSmCo
23.31 -0.08
IntSmVa
21.84 -0.12
US CoreEq1
US CoreEq2 20.77 -0.12
36.31 -0.16
US Small
US SmCpVal 38.95 -0.14
24.96 -0.15
US TgdVal
USLgVa
38.77 -0.22
Dodge & Cox
Balanced
108.92 -0.37
14.00 -0.03
GblStock
Income
13.80 -0.01
46.84 -0.09
Intl Stk
Stock
201.32 -0.95
DoubleLine Funds
NA
...
TotRetBdI
Edgewood Growth Instituti
EdgewoodGrInst 29.12 -0.13
Federated Instl
7.7 StraValDivIS
4.5 Fidelity
3.4
2.1
28.0
30.3
23.2
20.8
24.6
23.3
14.7
12.9
8.0
4.6
4.8
12.1
8.8
17.5
3.8
22.9
12.3
NA
31.1
500IdxInst
500IdxInstPrem
500IdxPrem
ExtMktIdxPrem r
IntlIdxPrem r
SAIUSLgCpIndxFd
TMktIdxF r
TMktIdxPrem
USBdIdxInstPrem
0.49
0.01
-0.57
0.16
-0.88
0.49
-4.29
-0.18
0.67
0.10
-2.38
0.15
-0.68
-0.31
0.13
-0.09
-0.01
0.18
0.10
-0.51
-0.14
-0.33
0.72
-0.76
-2.61
-1.60
-0.30
1.04
-0.23
-0.25
-1.91
-0.72
-0.14
0.08
-0.36
0.36
-0.24
-0.31
-0.10
-0.17
0.35
-0.02
-0.34
...
0.16
-0.14
0.20
4.66
0.24
1.85
-0.10
-0.24
-0.36
-3.27
-0.65
1.50
-0.07
-0.19
-3.35
-0.30
-0.30
0.42
-0.32
-0.75
0.82
0.64
-0.72
0.05
-0.72
-0.26
-0.17
-1.19
0.05
-0.25
-0.59
-1.91
-0.60
-0.76
-0.16
-1.33
-0.58
-0.74
-0.23
-0.23
-0.55
4.24
-0.02
-4.36
-1.16
0.44
-0.29
-0.32
-0.30
1.63
0.54
-0.66
-0.20
-3.93
-0.07
0.66
0.06
0.04
0.02
-0.18
-3.36
-0.40
-1.31
-0.31
Net
Sym Close Chg
Moody's
MCO 145.58 -1.42
s MorganStanley MS 50.53 -0.54
Mosaic
MOS 21.54 -0.11
MotorolaSolutions MSI 90.05 -0.18
NRG Energy NRG 24.92 -0.19
NTTDoCoMo DCM 23.58 -0.21
NVR
NVR 3159.14-46.77
NationalGrid NGG 60.92 -0.70
NatlOilwell NOV 33.63 -0.18
NatlRetailProp NNN 40.77 -0.40
NewOrientalEduc EDU 88.93 -3.19
NY CmntyBcp NYCB 12.50 -0.27
t NewellBrands NWL 40.28 -0.11
NewfieldExpln NFX 28.82 0.01
NewmontMining NEM 36.75 -0.38
NextEraEnergy NEE 153.86 -0.36
NielsenHoldings NLSN 38.56 -2.57
Nike
NKE 54.94 1.52
NiSource
NI
26.54 -0.13
NobleEnergy NBL 26.74 -0.39
Nokia
NOK 6.05 0.06
NomuraHoldings NMR 5.74 -0.02
Nordstrom JWN 41.52 -0.09
NorfolkSouthern NSC 128.69 -3.62
s NorthropGrumman NOC 304.75 10.72
Novartis
NVS 81.37 -1.76
NovoNordisk NVO 50.13 -0.19
Nucor
NUE 58.99 -0.79
t NuSTAREnergy NS 32.80 -0.89
OGE Energy OGE 36.73 -0.27
ONEOK
OKE 53.71 -2.23
OccidentalPetrol OXY 65.35 -0.47
Och-Ziff
OZM 3.61 -0.04
Olin
OLN 35.42 0.11
OmegaHealthcare OHI 31.51 -0.14
t Omnicom OMC 69.81 -1.11
Oracle
ORCL 49.70 -0.28
Orange
ORAN 16.01 -0.03
OrbitalATK OA 133.05 0.15
Orix
IX
84.97 0.19
Oshkosh
OSK 89.18 -0.50
OwensCorning OC 76.67 -4.16
PG&E
PCG 56.68 -0.43
PLDT
PHI 32.55 -0.86
s PNC Fin
PNC 137.46 -0.37
POSCO
PKX 74.00 -0.14
PPG Ind
PPG 117.72 0.28
PPL
PPL 37.69 -0.23
PVH
PVH 130.00 0.38
PackagingCpAm PKG 118.16 -0.47
PaloAltoNtwks PANW 148.55 -0.69
ParkHotels PK 28.09 -0.21
ParkerHannifin PH 183.68 -0.78
ParsleyEnergy PE 23.87 -0.18
Pearson
PSO 9.27 0.09
PembinaPipeline PBA 31.81 -0.64
Pentair
PNR 70.94 0.36
PepsiCo
PEP 110.07 -0.68
s PerkinElmer PKI 71.42 -0.19
Perrigo
PRGO 85.00 -1.06
PetroChina PTR 63.37 -0.27
PetroleoBrasil PBR 10.51 0.13
PetroleoBrasilA PBR.A 10.29 0.15
Pfizer
PFE 36.16 -0.11
PhilipMorris PM 107.00 -1.57
Phillips66 PSX 91.71 -0.12
PinnacleFoods PF 55.52 0.01
PinnacleWest PNW 88.25 -0.18
PioneerNatRscs PXD 142.16 -1.06
t PlainsAllAmPipe PAA 18.98 -0.56
t PlainsGP
PAGP 19.56 -0.32
PolarisIndustries PII 123.17 -0.01
Potash
POT 19.67 -0.07
Praxair
PX 143.62 0.67
PrincipalFin PFG 67.68 -0.89
Procter&Gamble PG 86.86 -0.12
Progressive PGR 48.61 -0.42
Prologis
PLD 64.03 -0.01
PrudentialFin PRU 111.25 -0.92
Prudential PUK 48.96
...
PublicServiceEnt PEG 49.16 0.08
PublicStorage PSA 210.00 -0.11
s PulteGroup PHM 29.23 0.55
QuantaServices PWR 37.37 -0.51
t Qudian
QD 26.39 -2.06
QuestDiag DGX 94.21 -1.06
QuintilesIMS Q
101.50 -0.83
RELX
RENX 21.89 0.03
RELX
RELX 22.67 -0.02
RPM
RPM 52.32 0.07
RalphLauren RL 91.85 1.18
RaymondJames RJF 85.73 -0.63
Raytheon RTN 189.19 0.09
RealtyIncome O
54.47 -0.49
RedHat
RHT 120.22 -1.06
RegencyCtrs REG 62.93 -0.43
RegionsFin RF 15.57 0.13
ReinsuranceGrp RGA 143.60 -0.86
RepublicServices RSG 63.77 -0.14
ResMed
RMD 78.40 -0.65
RestaurantBrands QSR 67.39 0.33
RiceEnergy RICE 26.77 -1.59
RioTinto
RIO 47.10 -0.88
s RobertHalf RHI 51.59 0.73
Rockwell
ROK 187.07 -1.61
RockwellCollins COL 134.92 -0.20
RogersComm B RCI 52.50 -0.67
Rollins
ROL 44.10 -3.05
52-Wk %
Sym Hi/Lo Chg Stock
Net YTD
NAV Chg % Ret
6.40 -0.05 11.2
-0.42
-0.42
-0.42
-0.37
-0.14
-0.06
-0.36
-0.37
-0.01
16.0
16.1
16.0
13.3
21.6
16.0
15.6
15.5
2.8
-0.13 23.1
-0.05 12.5
-0.05 13.3
-0.07 15.7
-0.04 NS
-0.05 NS
-0.06 NS
-0.06 NS
-0.05 NS
-0.09
-0.66
-0.51
-0.51
-0.02
-0.09
13.2
28.7
26.9
27.0
10.4
23.0
61.23
69.10
33.65
79.63
17.85
39.40
34.36
30.22
26.92
42.54
108.55
31.19
23.17
27.72
29.60
124.30
115.45
-0.9
-1.6
0.1
-0.1
8.3
-0.4
-0.5
-0.5
-0.6
-0.8
-0.1
-0.2
0.1
-0.4
-0.1
-0.4
-0.4
Net
Sym Close Chg
Stock
RoperTech ROP 255.16
RoyalBkCanada RY 78.34
RoyalBkScotland RBS 7.49
RoyalCaribbean RCL 121.28
RoyalDutchA RDS.A 61.05
s RoyalDutchB RDS.B 63.22
SAP
SAP 112.76
S&P Global SPGI 160.92
SINOPECShanghai SHI 61.42
SK Telecom SKM 26.03
SLGreenRealty SLG 95.80
s Salesforce.com CRM 99.59
Sanofi
SNY 47.67
Sasol
SSL 28.68
t Scana
SCG 47.57
Schlumberger SLB 63.44
SchwabC
SCHW 44.65
ScottsMiracleGro SMG 99.49
SealedAir SEE 44.58
SemicondctrMfg SMI 6.82
SempraEnergy SRE 114.31
SensataTech ST 48.96
ServiceCorp SCI 33.29
ServiceMaster SERV 44.62
ServiceNow NOW124.62
ShawComm B SJR 21.26
SherwinWilliams SHW 392.54
ShinhanFin SHG 45.98
Shopify
SHOP 102.99
SimonProperty SPG 163.68
SmithAO
AOS 59.11
Smith&Nephew SNN 38.02
t Smucker
SJM 103.93
Snap
SNAP 14.16
SnapOn
SNA 159.92
SOQUIMICH SQM 59.84
Sony
SNE 37.16
Southern
SO 52.21
SoCopper SCCO 43.65
SouthwestAirlines LUV 57.16
SpectraEnerPtrs SEP 41.48
SpectrumBrands SPB 106.61
SpiritAeroSys SPR 80.62
Sprint
S
7.10
Square
SQ 32.90
StanleyBlackDck SWK 163.53
StateStreet STT 94.05
s Statoil
STO 20.46
Steris
STE 91.07
s STMicroelec STM 20.90
Stryker
SYK 150.18
SumitomoMits SMFG 7.96
SunCommunities SUI 89.62
SunLifeFinancial SLF 39.38
SuncorEnergy SU 32.94
SunTrustBanks STI 59.78
SynchronyFin SYF 32.38
Syngenta SYT 92.11
Sysco
SYY 54.55
TAL Education TAL 32.37
s TE Connectivity TEL 88.90
s Telus
TU 36.82
Ternium
TX 32.52
TIM Part
TSU 18.82
TJX
TJX 71.44
TableauSoftware DATA 78.30
TaiwanSemi TSM 41.16
t TargaResources TRGP 40.35
Target
TGT 61.92
TataMotors TTM 32.12
TechnipFMC FTI 25.16
TeckRscsB TECK 22.88
s TelecomArgentina TEO 33.51
TelecomItalia TI
9.01
TelecomItalia A TI.A 7.19
s TeledyneTech TDY 167.58
Teleflex
TFX 242.43
TelefonicaBras VIV 15.59
Telefonica TEF 10.37
TelekmIndonesia TLK 30.01
t Tenaris
TS 25.97
Teradyne
TER 39.12
t TevaPharm TEVA 13.93
Textron
TXT 53.71
s ThermoFisherSci TMO 199.67
ThomsonReuters TRI 47.25
ThorIndustries THO 131.56
3M
MMM237.68
Tiffany
TIF 93.48
TimeWarner TWX 98.72
s Toll Bros
TOL 44.73
s Torchmark TMK 84.58
Toro
TTC 62.89
TorontoDomBk TD 56.36
Total
TOT 54.33
s TotalSystem TSS 70.42
ToyotaMotor TM 122.34
TransCanada TRP 46.64
TransDigm TDG 272.62
TransUnion TRU 50.86
Travelers
TRV 131.78
TurkcellIletism TKC 9.22
TurquoiseHill TRQ 3.10
Twitter
TWTR 17.14
TylerTech
TYL 170.51
TysonFoods TSN 71.09
UBS Group UBS 17.28
UDR
UDR 38.21
52-Wk %
Sym Hi/Lo Chg Stock
3.05
iShMSCIAustriaCap EWO 24.12 0.2 TelInstrElec
TIK
iShMSCIFranceETF EWQ 31.27 0.1
32.15 -0.3
iShMSCIFrontier100 FM
25.35 ...
iShMSCISingapore EWS
ANSS 133.40
73.08 ... Ansys
iShMSCISouthKorea EWY
BANR 62.75
68.48 -0.3 Banner
iShGloblFinancials IXG
BYBK 11.95
67.60 -0.4 BayBancorp
iShGlobalMaterials MXI
TECH 125.88
KraneMSCIChinaEnv KGRN 25.95 ... Bio-Techne
60.58
CFFI
OppenheimFclsSect RWW 66.69 -0.4 C&F Fin
CSW
Industrials
CSWI 49.28
93.67 -0.9
PwrShDynMkt PWC
25.29 0.2 CarolinaFinancial CARO 38.70
PwrShIndia
PIN
PwrShS&P500EnhVal SPVU 33.79 -0.1 CathayGenBncp CATY 41.38
33.17
CLLS
PwrShS&P500Mom SPMO 32.89 -0.7 Cellectis
33.67
ProShrUltraFnl UYG 119.91 -0.7 ChinaInternet CIFS
23.53 1.2 ChinaLodging HTHT 142.80
RenaissanceIntlIPO IPOS
54.78 -1.0 CiscoSystems CSCO 34.73
SPDRS&PCapitalMkts KCE
21.25
CoBizFin
COBZ
41.57 -1.4
SPDR S&P Home XHB
CGNX 124.46
UBSMLPShort MLPS 13.28 9.1 Cognex
COHU 25.34
47.46 0.2 Cohu
VanEckCSI300 PEK
CONN 32.90
61.32 -0.4 Conn's
VanEckIndiaSC SCIF
BOOM 19.25
VanEckVietnam VNM 15.63 0.3 DMC Global
DFNL 23.32
67.74 -0.4 DavisFinl
VangdFinls
VFH
34.50
DIOD
WBITacticalSMG WBIA 25.03 -0.1 Diodes
17.59
WisdTrGlbxUSDiv DXUS 26.65 -0.1 ElectroScientific ESIO
Entegris
ENTG 30.95
29.22
FifthThirdBncp FITB
FirstBancorpNC FBNC 36.45
AIPoweredEquity AIEQ 24.70 -1.1 FirstFoundation FFWM 19.34
AlerianMLPETF AMLP 10.24 -2.5 FirstSouthBancorp FSBK 20.00
FTAG 27.54
BarclaysETN+Select ATMP 19.65 -2.6 FT GlblAgri
FUNC 17.66
CTrksETNsMillerHwd MLPC 14.65 -1.9 FirstUnited
74.49
FSV
19.83 -0.3 FirstService
ColumbiaDivFixed DIAL
46.58
FLIR
CSX2xAlerianMLPETN AMJL 17.36 -5.2 FlirSystems
13.26 0.9
DirexFinlBear3 FAZ
DirexZacksMLPHiIn ZMLP 15.56 -1.8
ETRACS Alerian MLP AMU 16.30 -2.6
ETRACSMthPay2xLev DVHL 19.80 -1.8
ETRACS2xMLvAlerian MLPQ 32.50 -5.0
ETRACS2xMLevS&PMLP MLPZ 37.09 -5.6
GlbX MLP&Energy MLPX 12.68 -2.7
9.34 -2.4
GlbX MLP
MLPA
GlbXSuperIncPfd SPFF 12.38 -0.2
HartfordTRBd HTRB 39.94 -0.1
InfraCapMLPETF AMZA 7.87 -3.3 Company
iPathS&PMLPETN IMLP 16.90 -2.6
25.89 -2.6 Increased
JPM AlerianMLP AMJ
KraneEMCnsTech KEMQ 24.30 -1.0
6.69 -1.1 Abaxis
MSCushMLPHI MLPY
NuShESGUSAggBd NUBD 24.95 -0.1
NuShEnhYd1-5Y NUSA 24.99 -0.1 American Elec Power
23.42 -1.4 Associated Banc
PwrShDB G10 DBV
18.31 -3.3
ProShShtBasicMat SBM
Schwab1000Index SCHK 24.95 -0.5 Charter Financial
E-TRACS AlrInfr MLPI 22.45 -2.8 Cheniere Energy Ptnr
58.72 -1.1 VanEckHiIncmInfra YMLI 12.97 -2.4
15.59 0.1 VelocityShVIXTail BSWN 18.12 -0.7 EQT GP Holdings
17.84 -1.7
37.50 -1.4
1.98 -0.5
6.04 -6.5
4.18 0.7
22.45 -0.1
5.65 -0.3
39.90 -0.3
32.64 -2.6
16.01 -4.4
10.45 -3.7
9.91 -0.2
15.57 -2.6
69.42 -1.6
16.16 -1.2
18.77 -2.9
18.98 -1.6
2.26 -2.5
26.00 -7.2
23.23 -7.8
11.39 -4.9
0.16 -17.0
3.31 -2.0
10.28 -2.5
3.68 -1.8
46.40 -1.5
13.62 -9.9
23.90 -1.3
6.10 -3.1
102.31 -0.5
1.63 -4.1
11.67 -1.6
24.88 -0.6
7.75 0.4
26.18 -0.5
40.22 -4.7
47.72 -1.1
24.65 -0.8
25.95 -2.1
13.52 -2.5
25.19 -3.1
16.06 -2.6
17.33 -2.4
16.16 -2.9
15.75 -1.8
14.29 -1.2
4.80 ...
36.80 -1.2
37.44 -1.7
45.59 -1.9
13.55 -0.2
0.33
-1.42
0.03
-1.12
-0.34
-0.27
0.46
-0.98
-0.15
0.11
-0.40
0.93
-1.34
0.03
-0.72
1.00
-0.54
0.11
0.02
0.02
-0.65
-0.46
-0.49
-0.83
-1.27
-0.24
3.63
1.32
-3.42
-0.19
-2.82
0.45
-0.49
-0.43
-2.40
-1.15
-0.54
-0.16
-0.72
-1.64
-0.83
-2.39
-0.25
0.10
0.19
-2.21
-2.38
-0.06
-0.16
-0.21
0.49
0.04
-0.29
-0.37
-0.19
-0.40
-0.27
-0.02
-0.19
-1.60
-0.19
0.79
0.04
0.13
-0.30
-0.56
-0.16
-1.99
-1.01
-0.07
-0.20
-0.50
-0.02
-0.01
-0.07
-0.04
1.17
-0.09
0.07
-0.81
-0.57
-0.08
-0.35
-0.71
5.29
-0.24
-0.37
3.03
-0.47
-1.78
0.12
0.70
-0.15
-0.35
-0.28
2.24
-1.54
-1.41
4.80
-0.05
-1.41
-0.29
-0.03
-0.11
-6.69
-0.07
-0.13
0.18
NYSE Arca lows - 29
Net
Sym Close Chg
Stock
UGI
UGI 47.67
US Foods USFD 27.20
UltraparPart UGP 24.41
t UnderArmour A UAA 16.01
t UnderArmour C UA 14.65
Unilever
UN 55.89
Unilever
UL 54.28
UnionPacific UNP 110.27
UnitedContinental UAL 59.92
UnitedMicro UMC 2.54
UPS B
UPS 118.55
UnitedRentals URI 138.91
US Bancorp USB 54.14
US Steel
X
28.11
UnitedTech UTX 118.99
s UnitedHealth UNH 207.56
UniversalHealthB UHS 110.75
s UnumGroup UNM 52.21
VEREIT
VER 7.80
VF
VFC 71.25
s Visa
V
109.49
VailResorts MTN 225.67
Vale
VALE 10.33
ValeroEnergy VLO 77.68
Vantiv
VNTV 71.16
VarianMed VAR 107.90
Vedanta
VEDL 20.60
VeevaSystems VEEV 59.30
Ventas
VTR 61.50
Verizon
VZ 48.64
s VistraEnergy VST 20.32
s VMware
VMW 118.90
VornadoRealty VNO 72.81
VoyaFinancial VOYA 40.14
VulcanMaterials VMC 122.33
WABCO
WBC 152.09
WEC Energy WEC 66.77
W.P.Carey WPC 68.54
Wabtec
WAB 77.65
Wal-Mart WMT 88.48
WasteConnections WCN 69.88
WasteMgt WM 77.51
s Waters
WAT 190.35
s Watsco
WSO165.14
Wayfair
W 64.52
WellCareHealth WCG 179.48
WellsFargo WFC 55.25
Welltower HCN 66.20
WestPharmSvcs WST 91.65
WestarEnergy WR 52.74
s WestAllianceBcp WAL 56.16
t WesternGasEquity WGP 38.31
t WesternGasPtrs WES 46.62
WesternUnion WU 20.03
WestlakeChem WLK 84.51
WestpacBanking WBK 25.67
WestRock WRK 60.97
Weyerhaeuser WY 34.68
WheatonPrecMetals WPM 20.60
Whirlpool
WHR160.94
Williams
WMB 28.34
WilliamsPartners WPZ 36.82
Wipro
WIT 5.26
WooriBank WF 46.61
Wyndham WYN104.32
XPO Logistics XPO 68.16
XcelEnergy XEL 49.38
Xerox
XRX 33.10
Xylem
XYL 64.53
YPF
YPF 24.73
YumBrands YUM 74.67
YumChina YUMC 40.12
ZTO Express ZTO 15.63
ZayoGroup ZAYO 36.08
ZimmerBiomet ZBH 121.46
Zoetis
ZTS 64.38
-4.7 ForresterResearch FORR 44.45 -1.6
Garmin
GRMN 56.69 0.2
19.51 -0.3
23.67 -0.8
0.6 GoldenEnt
GDEN 26.70 2.2
-0.3 HailiangEduc
22.78 10.6
HLG
1.1 Hardinge
HDNG 16.48 -0.1
0.4 HeritageFin
HFWA 31.25 0.3
-0.3 Hurco
HURC 46.75 -0.4
0.5 II-VI
44.45 0.5
IIVI
3.0 IPG Photonics IPGP 211.73 -1.2
... IRSA Prop
64.68 0.3
IRCP
1.8 Intel
41.06 -0.4
INTC
2.8 InterParfums
46.80 8.2
IPAR
-3.5 InteractiveBrkrs IBKR
51.57 0.6
-0.8 InternetInitiat IIJI
10.15 1.0
1.4 Intuit
INTU 149.74 0.6
... Jewett-Cameron JCTCF 14.90 -0.3
-1.1 KingoldJewelry KGJI
2.50 6.2
4.0 LGI Homes
57.92 -1.1
LGIH
5.8 LightpathTech LPTH
3.48 14.8
-0.2 MKS Instrum MKSI 106.70 -0.1
1.2 MainSourceFncl MSFG 38.85 0.3
2.4 ManTechIntl
MANT 46.90 0.2
-0.8 MercerIntl
MERC 14.60 -0.7
-0.1 MercurySystems MRCY 54.49 -5.4
3.3 MonarchCasino MCRI 45.00 4.6
3.4 NN
NNBR 32.00 1.4
3.1 NortechSystems NSYS
6.24 7.9
... Novanta
NOVT 46.33 -0.1
2.1 OldDomFreight ODFL 113.36 -1.1
-1.1 ON Semi
20.50 -0.7
ON
6.0 OrrstownFinSvcs ORRF 26.75 3.7
-0.24
-0.21
0.10
-0.29
-0.18
0.15
0.17
-2.63
0.01
-0.05
-1.15
-5.03
-0.07
-0.58
-0.75
-0.59
-0.75
-0.61
-0.15
0.02
1.08
-1.10
-0.05
-0.01
1.03
0.54
-0.07
-1.46
-0.32
-0.30
0.74
-0.73
-0.83
-0.75
-1.43
2.68
-0.05
-0.44
-3.09
0.50
-0.39
-0.44
2.72
2.00
-1.93
1.89
-0.17
-0.65
-0.76
-0.19
0.27
-0.66
-0.88
-0.07
-1.09
-0.39
-0.10
-0.19
...
-2.32
-0.43
-0.76
-0.05
0.36
-4.20
-0.28
-0.08
-0.35
-0.30
0.70
-0.67
-0.82
0.06
0.28
0.25
-0.60
NASDAQ
AGNC Invt AGNC 21.44
s Ansys
ANSS 132.85
ASML
ASML 177.36
Abiomed
ABMD171.37
ActivisionBliz ATVI 61.81
AdobeSystems ADBE 171.83
AkamaiTech AKAM 54.00
AlexionPharm ALXN 132.01
AlignTech ALGN 201.75
Alkermes ALKS 49.49
AlnylamPharm ALNY 117.40
Alphabet A GOOGL 991.46
Alphabet C GOOG 973.33
Altaba
AABA 65.40
Amazon.com AMZN 972.91
Amdocs
DOX 65.74
Amerco
UHAL388.25
AmericanAirlines AAL 51.02
Amgen
AMGN 177.50
AnalogDevices ADI 89.86
Apple
AAPL 156.41
AppliedMaterials AMAT 55.30
ArchCapital ACGL 102.11
Atlassian
TEAM 48.26
Autodesk ADSK 119.94
ADP
ADP 116.34
BOK Fin
BOKF 87.15
Baidu
BIDU 263.04
BankofOzarks OZRK 46.33
Biogen
BIIB 314.64
52-Wk %
Sym Hi/Lo Chg Stock
SNSR
Nasdaq highs - 87 GlbXInternetThings
GlbX Robotics&AI BOTZ
-0.18
0.74
-1.07
-5.34
-0.92
0.25
2.09
-4.65
-1.97
-0.89
0.33
2.97
2.79
-1.21
-2.99
-0.11
0.85
-0.93
-2.87
-0.43
-0.69
-1.08
0.18
-1.02
0.65
-0.12
-3.43
-0.96
-0.34
-1.09
Net
Sym Close Chg
Stock
BioMarinPharm BMRN 84.79
Bioverativ BIVV 58.73
bluebirdbio BLUE 139.45
BrighthouseFin BHF 62.06
Broadcom AVGO 245.82
CA
CA 34.13
CDK Global CDK 66.49
CDW
CDW 69.16
CH Robinson CHRW 78.60
CME Group CME 133.85
CSX
CSX 52.92
CadenceDesign CDNS 42.22
Carlyle
CG 22.95
CboeGlobalMkts CBOE 109.73
Celgene
CELG 119.56
Cerner
CERN 71.80
CharterComms CHTR 344.91
CheckPointSftw CHKP 115.56
s ChinaLodging HTHT 135.59
CincinnatiFin CINF 75.75
Cintas
CTAS 150.16
s CiscoSystems CSCO 34.30
CitrixSystems CTXS 82.43
s Cognex
CGNX 122.77
CognizantTech CTSH 74.25
Coherent
COHR 263.56
Comcast A CMCSA 36.83
CommerceBcshrs CBSH 57.88
CommScope COMM 31.86
Copart
CPRT 35.75
CoStarGroup CSGP 278.41
Costco
COST 162.18
Ctrip.com CTRP 47.35
DISH Network DISH 49.00
DentsplySirona XRAY 61.00
DiamondbackEner FANG 100.89
DiscoveryComm A DISCA 19.26
DiscoveryComm C DISCK 18.18
DollarTree DLTR 91.61
E*TRADE ETFC 43.42
EastWestBancorp EWBC 60.19
eBay
EBAY 36.68
ElbitSystems ESLT 150.60
ElectronicArts EA 114.56
Equinix
EQIX 457.93
Ericsson
ERIC 6.58
Exelixis
EXEL 25.89
Expedia
EXPE 147.90
ExpeditorsIntl EXPD 58.84
ExpressScripts ESRX 61.16
F5Networks FFIV 119.31
Facebook
FB 170.60
Fastenal
FAST 46.64
s FifthThirdBncp FITB 28.58
Fiserv
FISV 128.21
Flex
FLEX 17.63
s FlirSystems FLIR 46.52
Fortinet
FTNT 39.70
Gaming&Leisure GLPI 35.81
s Garmin
GRMN 56.55
GileadSciences GILD 79.89
Goodyear GT 33.95
Grifols
GRFS 21.32
HD Supply HDS 35.17
Hasbro
HAS 94.40
HenrySchein HSIC 82.90
Hologic
HOLX 37.03
JBHunt
JBHT 106.23
HuntingtonBcshs HBAN 13.88
IAC/InterActive IAC 123.87
IdexxLab
IDXX 162.04
IHSMarkit INFO 42.95
INC Research INCR 55.50
s IPG Photonics IPGP 206.96
s IRSA Prop IRCP 64.65
IcahnEnterprises IEP 55.88
Icon
ICLR 112.91
Illumina
ILMN204.85
Incyte
INCY 114.55
s Intel
INTC 40.78
s InteractiveBrkrs IBKR 51.46
s Intuit
INTU 149.46
IntuitiveSurgical ISRG 372.42
IonisPharma IONS 54.02
JD.com
JD 37.40
JackHenry JKHY 106.92
JazzPharma JAZZ 140.27
JetBlue
JBLU 19.72
KLA Tencor KLAC 106.71
KraftHeinz KHC 77.33
LKQ
LKQ 36.54
LamResearch LRCX 203.07
LamarAdvertising LAMR 67.95
LibertyBroadbandA LBRDA 89.69
LibertyBroadbandC LBRDK 91.41
LibertyGlobal A LBTYA 31.19
LibertyGlobal C LBTYK 30.17
LibertyLiLAC A LILA 21.73
LibertyLiLAC C LILAK 21.74
LibertyQVC A QVCA 22.95
LibertyVenturesA LVNTA 56.47
LibertyFormOne A FWONA 37.18
LibertyFormOne C FWONK 39.00
LibertyBraves A BATRA 24.59
LibertyBraves C BATRK 24.64
LibertySirius A LSXMA 41.80
LibertySirius C LSXMK 41.80
LincolnElectric LECO 97.26
52-Wk %
Sym Hi/Lo Chg Stock
Overstock
OSTK
PAM Transport PTSI
PinnacleEnt
PNK
PluristemTherap PSTI
PwrShDynBscMatl PYZ
PwrShKBW Banks KBWB
PreferredBankLA PFBC
ProgressSoftware PRGS
QAD B
QADB
QAD A
QADA
Rambus
RMBS
RealPage
RP
SchmittIndustries SMIT
SierraOncology SRRA
Silicom
SILC
SiliconLab
SLAB
Stamps.com
STMP
Synopsys
SNPS
TD Ameritrade AMTD
TesscoTech
TESS
TowerSemi
TSEM
Trimble
TRMB
2U
TWOU
UFP Tech
UFPT
Xunlei
XNET
43.15
29.15
25.34
2.12
68.13
52.70
65.19
42.83
30.75
37.70
14.50
43.85
2.32
2.20
73.68
92.70
231.40
86.81
50.96
16.39
32.60
41.49
63.15
31.20
7.60
7.1
0.4
-0.7
-1.0
...
-0.5
9.2
0.1
1.0
...
-1.5
-0.1
4.7
12.6
...
3.6
0.1
1.1
-0.2
3.8
-0.8
0.2
-0.9
2.0
5.3
Nasdaq lows - 70
AMAG Pharm AMAG 15.10 0.6
AcadiaHealthcare ACHC 30.91 -25.9
AccelerateDiag AXDX 17.80 1.3
8.20 -1.2
AduroBiotech ADRO
9.93 0.7
AlcentraCapital ABDC
-1.50
-0.55
-1.80
-0.48
-1.86
-0.16
-0.50
-0.80
-0.23
-0.22
-1.41
-0.09
-0.80
-0.52
-0.78
-0.58
4.65
-1.71
-4.88
-0.51
-0.69
-0.28
-0.76
-0.01
-0.44
0.96
0.33
-0.48
-0.54
-0.41
-2.33
-0.11
-0.70
...
-0.09
1.22
-0.20
-0.27
-0.17
-0.20
-0.59
-0.06
-0.62
1.17
-5.04
0.06
-0.55
-2.83
-0.38
2.31
0.16
-1.20
-0.20
-0.02
0.82
-0.15
2.62
-0.30
-0.71
0.14
-0.21
-0.11
0.06
-0.20
1.44
-0.07
-0.01
-0.08
-0.33
0.23
-0.66
-0.59
0.25
-2.50
0.18
-1.09
0.08
-5.97
0.51
-0.17
0.33
0.84
0.93
-0.99
-1.12
0.88
-1.73
-0.90
-0.98
0.11
-0.56
-2.77
0.27
0.89
0.92
0.01
-0.09
0.22
0.08
-0.21
0.22
-0.10
...
0.12
0.12
-1.42
-1.41
-1.13
Net
Sym Close Chg
Stock
LogitechIntl LOGI 34.10 -0.47
LogMeIn
LOGM 121.40 -0.55
lululemon LULU 62.07 0.20
MarketAxess MKTX 179.68-10.40
Marriott
MAR 116.33 -0.48
MarvellTech MRVL 18.39 -0.19
MatchGroup MTCH 25.20 -0.28
MaximIntProducts MXIM 51.45 -0.89
MelcoResorts MLCO 23.04 -0.54
MercadoLibre MELI 221.51 -3.91
MicrochipTech MCHP 92.32 -0.99
MicronTech MU 41.06 -0.54
Microsemi MSCC 52.66 0.16
Microsoft MSFT 78.63 -0.23
Middleby
MIDD 115.76 -1.26
Momo
MOMO 29.56 -1.68
Mondelez MDLZ 41.08 -0.01
MonsterBeverage MNST 56.50 -0.33
Mylan
MYL 39.02 0.10
NXP Semi NXPI 116.49 -0.30
Nasdaq
NDAQ 72.44 -1.01
NatlInstruments NATI 44.25 0.25
NetApp
NTAP 43.71 -1.11
Netease
NTES 275.21 -5.33
Netflix
NFLX 193.77 -2.25
NewsCorp A NWSA 13.66 0.03
NewsCorp B NWS 14.00 0.05
Nordson
NDSN 125.54 -0.11
NorthernTrust NTRS 94.76 -1.69
NorwegianCruise NCLH 54.79 0.13
NVIDIA
NVDA 193.66 -5.02
OReillyAuto ORLY 202.72 -0.61
s OldDomFreight ODFL 111.03 -1.28
s ON Semi
ON 20.22 -0.15
OpenText OTEX 33.96 -0.13
PTC
PTC 60.09 -1.00
Paccar
PCAR 70.23 -0.15
PacWestBancorp PACW 47.89 -0.79
Paychex
PAYX 64.08 0.20
PayPal
PYPL 71.02 0.81
People'sUtdFin PBCT 18.68 -0.16
PilgrimPride PPC 30.87 0.18
Priceline
PCLN 1928.81 -3.48
Qiagen
QGEN 33.54 0.02
Qorvo
QRVO 71.78 0.34
Qualcomm QCOM 53.84 -0.41
RandgoldRscs GOLD 97.19 -0.23
RegenPharm REGN 421.93 -4.58
RossStores ROST 63.84 -0.50
Ryanair
RYAAY103.46 -0.55
SBA Comm SBAC 146.48 -1.75
SEI Investments SEIC 62.80 -0.70
Sina
SINA 107.78 -2.84
SS&C Tech SSNC 42.07 0.03
SVB Fin
SIVB 188.58 -0.41
ScrippsNetworks SNI 83.51 -0.18
Seagate
STX 38.15 -0.69
SeattleGenetics SGEN 62.00 -0.36
Shire
SHPG 143.69 -0.81
SignatureBank SBNY 133.91 -1.97
SiriusXM
SIRI 5.56 -0.16
Skyworks SWKS 104.57 -0.64
Splunk
SPLK 65.14 -0.27
Starbucks SBUX 54.16 -0.12
SteelDynamics STLD 38.73 -0.82
Stericycle SRCL 71.40 -0.68
Symantec SYMC 32.18 -0.18
s Synopsys SNPS 85.69 0.92
s TD Ameritrade AMTD 49.88 -0.12
TESARO
TSRO 110.03 -2.36
T-MobileUS TMUS 61.93 -0.35
TRowePrice TROW 95.15 -1.33
TakeTwoSoftware TTWO 104.87 -0.35
Tesla
TSLA 325.84-11.50
TexasInstruments TXN 95.82 -0.62
TractorSupply TSCO 57.92 -0.38
s Trimble
TRMB 41.20 0.08
21stCenturyFoxA FOXA 26.13 -0.10
21stCenturyFoxB FOX 25.43 -0.13
UltaBeauty ULTA 201.29 -2.02
UltimateSoftware ULTI 195.54 1.85
UniversalDisplay OLED 132.60 -2.60
VEON
VEON 3.85 -0.06
VeriSign
VRSN 107.75 -1.14
VeriskAnalytics VRSK 84.20 -0.68
VertxPharm VRTX 146.80 -4.31
Viacom A VIA 32.00 -0.35
Viacom B VIAB 25.48 -0.17
Vodafone VOD 28.75 -0.03
WPP
WPPGY 87.61 0.54
t WalgreensBoots WBA 69.36 2.07
Weibo
WB 90.35 -5.48
WesternDigital WDC 87.29 -0.60
WillisTwrsWatson WLTW 163.24 -0.04
Workday
WDAY 105.80 -1.38
WynnResorts WYNN 143.51 -1.40
Xilinx
XLNX 70.72 -0.89
Yandex
YNDX 32.01 -0.81
ZebraTech ZBRA 110.80 -0.98
Zillow A
ZG 40.35 -0.64
Zillow C
Z
40.60 -0.50
ZionsBancorp ZION 45.99 -0.36
NYSE AMER
CheniereEnergy LNG
CheniereEnerPtrs CQP
CheniereEnHldgs CQH
ImperialOil IMO
52-Wk %
Sym Hi/Lo Chg Stock
AmbacFinWt AMBCW
AquaMetals
AQMS
Astrotech
ASTC
AtlanticAmerican AAME
AvenueTherap ATXI
AxovantSciences AXON
BedBath
BBBY
BoulevardAcqnIi BLVD
CapitalaFinance CPTA
CardiomePharma CRME
Cempra
CEMP
Cenveo
CVO
DHX Media VV DHXM
Digirad
DRAD
DigitalAlly
DGLY
ENDRA LifeSci NDRA
ElbitImaging
EMITF
EndoIntl
ENDP
EnergyXXIGulfCoast EXXI
FTD
FTD
FT LowDurOpp LMBS
FiveStarSrLiving FVE
GTY Tech
GTYH
GeniusBrands GNUS
GenMarkDiagn GNMK
Giga-Tronics
GIGA
GolarLNG
GLNG
HabitRestaurants HABT
HawaiianHoldings HA
ImmuneDesign IMDZ
LexiconPharm LXRX
MeetGroup
MEET
6.00 -3.8
3.80 -0.5
3.06 -5.5
3.04 -8.8
3.92 -5.0
5.30 -2.0
20.77 -2.2
9.54 -0.7
8.40 -2.5
1.29 -5.0
2.40 -7.7
1.10 -12.6
3.05 -6.0
2.10 -4.4
1.95 -13.3
2.50 -7.9
2.51 -0.4
7.07 -3.8
8.00 -2.0
11.07 1.9
51.76 ...
1.43 -3.3
9.76 -0.1
2.74 -3.8
7.65 0.1
0.55 -5.0
19.58 -2.5
11.78 -0.8
35.90 -3.0
3.78 -3.4
10.13 -2.6
3.40 1.2
44.40
27.52
24.79
30.92
-0.77
-0.20
-0.48
-0.08
52-Wk %
Sym Hi/Lo Chg
MicronetEnertec MICT
MustangBio
MBIO
NabrivaTherap NBRV
NanoStringTech NSTG
NationalAmerUniv NAUH
NewYorkMtgPfdD NYMTN
NovelionTherap NVLN
NuCana
NCNA
OrionEnergySys OESX
PapaJohn's
PZZA
ProspectCapital PSEC
RISE Education REDU
Radisys
RSYS
RexEnergy
REXX
RhythmPharm RYTM
SearsHometown SHOS
Synaptics
SYNA
Tocagen
TOCA
Travelzoo
TZOO
Trevena
TRVN
TrinityBiotech TRIB
trivago
TRVG
USAutoPartsNtwk PRTS
US Gold
USAU
UltragenyxPharm RARE
VeecoInstr
VECO
Vivus
VVUS
WMIH
WMIH
WalgreensBoots WBA
WestwaterResources WWR
YogaWorks
YOGA
Ziopharm
ZIOP
ZK Intl
ZKIN
0.65 -2.6
8.22 -0.7
5.53 -2.9
9.05 -0.3
1.00 -12.2
24.58 -0.2
5.28 -5.4
12.71 -6.7
0.80 -4.5
65.95 -0.1
6.00 -1.1
11.10 -14.4
1.23 ...
1.73 -3.7
22.11 -7.1
1.65 ...
34.25 -0.9
9.50 -3.2
7.50 -1.9
1.45 -4.5
4.44 -5.9
8.12 -22.5
2.27 -1.2
1.12 -6.3
47.55 -4.1
17.50 -6.0
0.71 -6.6
0.61 2.1
66.05 3.1
0.96 -3.9
2.49 -5.3
4.63 -2.0
6.72 -12.2
Dividend Changes
Dividend announcements from October 25.
NYSE American highs - 0
NYSE American lows - 12
2.45 -2.0
AsteriasBiotherap AST
2.34 -4.9
Biotime
BTX
3.57 2.6
ContangoO&G MCF
0.67 -2.1
EMX Royalty EMX
22.29 -3.4
FT EnerIncome FEN
1.41 -2.0
GoldStandrdVntr GSV
GoldenMinerals AUMN 0.39 -4.2
Myomo
2.55 1.9
MYO
0.92 ...
NanoViricides NNVC
0.64 -4.4
NorthernOil&Gas NOG
SamsonOil&Gas SSN
0.27 -0.6
Net YTD
NAV Chg % Ret Fund
177.54
GroCo
177.49
GrowCoK
7.91
InvGB
11.25
InvGrBd
52.53
LowP r
LowPriStkK r 52.49
104.13
MagIn
104.90
OTC
22.88
Puritn
SrsEmrgMkt 21.15
SrsGroCoRetail 17.44
16.02
SrsIntlGrw
10.79
SrsIntlVal
10.64
TotalBond
-1.40
-1.40
...
-0.01
-0.14
-0.14
-0.42
-0.90
-0.07
-0.01
-0.13
-0.08
-0.04
-0.02
Fidelity Selects
220.54 -2.09
First Eagle Funds
60.09 -0.19
GlbA
FPA Funds
NA
...
FPACres
FrankTemp/Frank Adv
2.36 -0.01
IncomeAdv
FrankTemp/Franklin A
7.44 -0.02
CA TF A p
11.98 -0.02
Fed TF A p
IncomeA p
2.38 -0.01
RisDv A p
60.24 -0.08
FrankTemp/Franklin C
2.41 -0.01
Income C t
FrankTemp/Temp A
GlBond A p
12.18 +0.01
Growth A p
26.90 -0.09
FrankTemp/Temp Adv
GlBondAdv p 12.13 +0.01
Harbor Funds
CapApInst
73.52 -0.33
IntlInst r
69.61 -0.25
Harding Loevner
IntlEq
NA
...
Invesco Funds A
EqIncA
11.25 -0.05
John Hancock Class 1
LSBalncd
15.86 -0.05
16.99 -0.07
LSGwth
John Hancock Instl
23.91 -0.18
DispValMCI
JPMorgan Funds
39.86 -0.20
MdCpVal L
Biotech r
89.49
89.49
89.49
62.18
42.93
13.72
74.25
74.23
11.57
Fidelity Advisor I
NwInsghtI
32.87
Fidelity Freedom
16.59
FF2020
FF2025
14.35
17.96
FF2030
Freedom2020 K 16.60
Freedom2025 K 14.35
Freedom2030 K 17.97
Freedom2035 K 15.06
Freedom2040 K 10.58
Fidelity Invest
23.48
Balanc
84.91
BluCh
Contra
124.16
124.15
ContraK
10.28
CpInc r
DivIntl
40.97
ICICI Bank IBN 9.11
s ING Groep ING 18.82
Invesco
IVZ 36.84
s IDEX
IEX 127.04
IllinoisToolWks ITW 157.54
Infosys
INFY 15.01
Ingersoll-Rand IR 91.32
Ingredion
INGR 124.67
ICE
ICE 65.91
InterContinentl IHG 53.89
IBM
IBM 153.50
IntlFlavors IFF 149.20
IntlPaper
IP
57.99
Interpublic IPG 19.50
InvitationHomes INVH 22.81
IronMountain IRM 39.81
IsraelChemicals ICL 4.21
ItauUnibanco ITUB 13.66
s JPMorganChase JPM 101.02
JacobsEngineering JEC 58.08
JamesHardie JHX 14.72
JanusHenderson JHG 34.92
J&J
JNJ 142.36
JohnsonControls JCI 41.20
JonesLangLaSalle JLL 125.88
t JuniperNetworks JNPR 24.56
KAR Auction KAR 46.87
KB Fin
KB 52.51
s KKR
KKR 20.52
KT
KT 14.07
KSCitySouthern KSU 102.20
t Kellogg
K
60.48
KeyCorp
KEY 18.32
s KeysightTechs KEYS 43.07
KilroyRealty KRC 71.14
KimberlyClark KMB 112.40
KimcoRealty KIM 18.49
t KinderMorgan KMI 17.96
Knight-Swift KNX 40.25
Kohl's
KSS 43.79
KoninklijkePhil PHG 40.51
KoreaElcPwr KEP 17.81
Kroger
KR 21.13
Kyocera
KYO 65.89
LATAMAirlines LTM 13.91
L Brands
LB 44.29
LG Display LPL 13.17
LINE
LN 41.45
L3 Tech
LLL 188.45
LabCpAm LH 152.71
LambWeston LW 50.62
LasVegasSands LVS 62.91
Lazard
LAZ 45.27
Lear
LEA 171.52
Leggett&Platt LEG 47.90
s Leidos
LDOS 62.74
s Lennar A
LEN 57.94
s Lennar B
LEN.B 49.03
LennoxIntl LII 193.22
LeucadiaNatl LUK 25.44
Level3Comms LVLT 52.90
LibertyProperty LPT 42.80
EliLilly
LLY 84.85
s LincolnNational LNC 76.46
LionsGate A LGF.A 30.32
LionsGate B LGF.B 28.81
LiveNationEnt LYV 42.25
LloydsBanking LYG 3.66
LockheedMartin LMT 312.43
Loews
L
48.25
Lowe's
LOW 80.99
LyondellBasell LYB 99.75
M&T Bank MTB 165.80
MGM Resorts MGM 30.97
MPLX
MPLX 32.46
MSCI
MSCI 118.54
Macerich
MAC 56.10
MacquarieInfr MIC 69.33
Macy's
M
21.24
MagellanMid MMP 66.17
MagnaIntl MGA 54.96
Manpower MAN 123.24
ManulifeFin MFC 20.28
MarathonOil MRO 13.48
MarathonPetrol MPC 56.44
Markel
MKL 1067.81
Marsh&McLennan MMC 84.47
MartinMarietta MLM 212.23
Masco
MAS 39.67
Mastercard MA 146.24
McCormick MKC 98.87
McCormickVtg MKC.V 98.65
McDonalds MCD 163.58
McKesson MCK 151.38
Medtronic MDT 79.20
Merck
MRK 62.45
MetLife
MET 53.94
s MettlerToledo MTD 665.43
MichaelKors KORS 49.73
s MicroFocus MFGP 33.57
MidAmApt MAA 104.22
MitsubishiUFJ MTU 6.67
MizuhoFin MFG 3.63
MobileTeleSys MBT 10.56
MohawkIndustries MHK 263.15
MolsonCoors A TAP.A 84.40
MolsonCoors B TAP 82.26
Monsanto MON 121.55
Stock
Symbol
NYSE Arca highs - 43
Data provided by
Wednesday, October 25, 2017
Net YTD
Net YTD
NAV Chg % Ret Fund
NAV Chg % Ret Fund
Net
Sym Close Chg
Stock
52-Wk %
Sym Hi/Lo Chg Stock
KinderMorgan KMI
KinderMorganPfdA KMIpA
LightInTheBox LITB
MBIA
MBI
MFS Intermd MIN
Mack-Cali
CLI
NaborsIndustries NBR
NewellBrands NWL
NuSTAREnergy NS
NuSTAR GP
NSH
NuvEnerMLPTR JMF
NuvHiIncmDec18 JHA
OasisMidstream OMP
Omnicom
OMC
PQ Group
PQG
PlainsAllAmPipe PAA
PlainsGP
PAGP
PrecisionDrilling PDS
Qudian
QD
RYBEducation RYB
RangerEnergySvcs RNGR
RivernorthOppsRt RIVr
RubiconProject RUBI
SalientMidstream SMM
SanchezEnergy SN
Scana
SCG
Sea
SE
SeaspanNts2027 SSWA
Smart&FinalStores SFS
Smucker
SJM
SocialCapHedWt IPOA.WS
SouthwestEnerPfB SWNC
StifelFinNts47 SFB
SuperiorEnergy SPN
SynovusFinlPfdC SNVpC
TargaResources TRGP
TaubmanCtrs TCO
TeekayLNG PfdB TGPpB
Tenaris
TS
TevaPharm
TEVA
TortoiseEnerInf TYG
TortoiseMLPFund NTG
TortoisePipe&En TTP
TwoHarborsWi TWOw
UnderArmour A UAA
UnderArmour C UA
VitaminShoppe VSI
WeisMarkets WMK
WesternGasEquity WGP
WesternGasPtrs WES
WideOpenWest WOW
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
Net
Sym Close Chg
29.8
29.9
3.2
3.6
14.6
14.7
20.7
31.7
14.7
34.7
30.5
25.2
17.8
3.5
26.7
10.7
NA
7.7
4.8
3.0
7.5
15.4
7.4
3.8
14.2
4.0
29.8
19.2
NA
7.7
12.3
15.6
11.4
9.5
EQT Midstream Partners
Getty Realty
Independent Bank Michigan
Iron Mountain
Legacy Texas Finl
Macerich
MSC Industrial Direct
SB Financial Group
Payable /
Record
Company
Net YTD
NAV Chg % Ret Fund
HelSci
AEP
ASB
CHFN
CQP
EQGP
EQM
GTY
IBCP
IRM
LTXB
MAC
MSM
SBFG
1.3
3.4
2.2
1.6
6.4
3.4
5.6
4.4
2.2
5.9
1.6
5.3
2.5
1.7
.16 /.14
.62 /.59
.14 /.12
.075 /.07
.44 /.425
.228 /.21
.98 /.935
.32 /.28
.12 /.10
.5875 /.55
.16 /.15
.74 /.71
.48 /.45
.075 /.07
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
22.9
6.7
2.1
2.4
2.4
2.7
2.7
14.4
24.5
8.4
11.3
15.9
27.8
14.8
31.0
23.6
11.9
NA
4.6
NA
NA
NA
NA
30.4
12.6
12.0
15.8
28.7
Net YTD
NAV Chg % Ret Fund
73.81 -0.41
38.54 -0.17
19.08 -0.05
IntlStk
15.28 -0.07
IntlValEq
91.36 -0.49
MCapGro
30.91 -0.19
MCapVal
54.82 -0.41
N Horiz
9.47 -0.01
N Inc
11.28 -0.04
OverS SF r
23.06 -0.07
R2020
17.77 -0.06
R2025
26.17 -0.09
R2030
19.12 -0.07
R2035
27.47 -0.10
R2040
38.55 -0.17
Value
PRIMECAP Odyssey Fds
35.24 -0.36
Growth r
Principal Investors
13.82 -0.04
DivIntlInst
Prudential Cl Z & I
TRBdZ
14.47 -0.03
Schwab Funds
39.94 -0.19
S&P Sel
TIAA/CREF Funds
EqIdxInst
19.17 -0.09
IntlEqIdxInst 20.14 -0.08
Tweedy Browne Fds
GblValue
28.14 -0.21
VANGUARD ADMIRAL
500Adml
236.29 -1.11
BalAdml
33.83 -0.12
CAITAdml
11.82 -0.02
CapOpAdml r 153.75 -1.53
36.92 -0.03
EMAdmr
EqIncAdml
76.04 -0.41
ExtndAdml
81.69 -0.48
GNMAAdml 10.48 -0.02
69.16 -0.23
GrwthAdml
HlthCareAdml r 90.10 -0.44
HYCorAdml r 5.98 -0.01
25.61 -0.01
InfProAd
93.46 -0.53
IntlGrAdml
ITBondAdml 11.39 -0.01
ITIGradeAdml 9.79 -0.01
LTGradeAdml 10.51 -0.04
MidCpAdml 183.99 -1.56
11.38 -0.02
MuHYAdml
14.18 -0.03
MuIntAdml
3.2 InstlCapG
Amount
Yld % New/Old Frq
Symbol
Payable /
Record
Reduced
ABAX
Waddell & Reed Financial
Dec15 /Dec01
Dec08 /Nov10
Dec15 /Dec01
Nov21 /Nov10
Nov14 /Nov03
Nov22 /Nov03
Nov14 /Nov03
Jan04 /Dec21
Nov15 /Nov06
Jan02 /Dec15
Nov20 /Nov06
Dec01 /Nov10
Nov28 /Nov14
Nov24 /Nov10
Sotherly Htls 7.875 Pfd C
25.6
5.2
16.0
15.6
21.7
5.0
.25 /.46
Q
Feb01 /Jan11
SOHOO
6.8
.43203
Q
Jan16 /Dec29
Funds and investment companies
Horizons NASDAQ-100 Cvd
JPMorgan Disciplined HY
JPMorgan Gl Bd Opps
JPMorgan Ultra Short Incm
QYLD
JPHY
JPGB
JPST
7.4
4.6
2.5
1.7
.14901
.1999
.10623
.07094
M
M
M
M
Oct31 /Oct26
Oct30 /Oct26
Oct30 /Oct26
Oct30 /Oct26
CNI
DLNGpA
ETN
HSPX
1.6
8.4
1.9
0.9
.33041
.5625
.60
.03746
Q
Q
Q
M
Dec29 /Dec08
Nov13 /Nov05
Nov17 /Nov03
Oct31 /Oct26
NEN
ROL
1.7
1.0
.94
.10
Foreign
Canadian Natl Railway
Dynagas LNG 9% Pfd. A
Eaton Corp. PLC
Horizons S&P 500 Cov Call
Special
New England Realty un
Rollins Inc
Net YTD
NAV Chg % Ret Fund
11.66
MuLTAdml
MuLtdAdml
10.98
MuShtAdml 15.79
PrmcpAdml r 133.92
REITAdml r 117.01
SmCapAdml 68.10
STBondAdml 10.43
STIGradeAdml 10.68
10.74
TotBdAdml
TotIntBdIdxAdm 21.82
TotIntlAdmIdx r 29.71
TotStAdml
63.95
14.05
TxMIn r
ValAdml
39.71
68.80
WdsrllAdml
WellsIAdml
64.94
23.0 WelltnAdml
73.49
78.92
WndsrAdml
24.9
31.8
24.8
19.3
21.2
6.4
26.6
3.3
24.4
13.0
14.6
16.2
17.4
18.4
14.6
WDR
Initial
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
JPMorgan R Class
11.62 -0.01
Lazard Instl
19.52 +0.02
EmgMktEq
Loomis Sayles Fds
LSBondI
14.19 -0.02
Lord Abbett A
...
ShtDurIncmA p 4.27
Lord Abbett F
4.27
...
ShtDurIncm
Metropolitan West
10.63 -0.02
TotRetBd
10.63 -0.02
TotRetBdI
10.00 -0.02
TRBdPlan
MFS Funds Class I
ValueI
40.99 -0.13
MFS Funds Instl
IntlEq
25.23 -0.05
Mutual Series
32.62 -0.19
GlbDiscA
Oakmark Funds Invest
33.87 -0.16
EqtyInc r
Oakmark
84.03 -0.32
29.01 +0.01
OakmrkInt
Old Westbury Fds
14.73 -0.07
LrgCpStr
Oppenheimer Y
DevMktY
41.87 -0.07
42.87 +0.01
IntGrowY
Parnassus Fds
ParnEqFd
43.59 -0.12
PIMCO Fds Instl
AllAsset
NA
...
10.26 -0.01
TotRt
PIMCO Funds A
IncomeFd
NA
...
PIMCO Funds D
IncomeFd
NA
...
PIMCO Funds Instl
NA
...
IncomeFd
PIMCO Funds P
NA
...
IncomeP
Price Funds
94.67 -0.46
BlChip
CapApp
29.50 -0.08
34.77 -0.18
EqInc
68.72 -0.32
EqIndex
Growth
68.55 -0.26
CoreBond
Amount
Yld % New/Old Frq
Net YTD
NAV Chg % Ret Fund
INSTTRF2045 23.32 -0.09
IntlVal
38.99 -0.14
32.88 -0.12
LifeGro
LifeMod
26.74 -0.08
26.69 -0.21
PrmcpCor
32.75 -0.27
SelValu r
26.96 -0.11
STAR
10.68
...
STIGrade
15.83 -0.03
TgtRe2015
31.39 -0.09
TgtRe2020
18.39 -0.06
TgtRe2025
TgtRe2030
33.22 -0.11
20.40 -0.07
TgtRe2035
TgtRe2040
35.11 -0.14
22.05 -0.09
TgtRe2045
TgtRe2050
35.48 -0.14
13.50 -0.03
TgtRetInc
TotIntBdIxInv 10.91 -0.01
VANGUARD FDS
26.81 -0.07
WellsI
26.33
... 14.1 Welltn
42.55 -0.11
DivdGro
213.58 -1.02 18.8 WndsrII
38.76 -0.19
HlthCare r
INSTTRF2020 22.38 -0.06 11.1 VANGUARD INDEX FDS
236.27 -1.11
INSTTRF2025 22.63 -0.07 12.5 500
201.58 -1.19
INSTTRF2030 22.81 -0.08 13.8 ExtndIstPl
55.20 -0.26
INSTTRF2035 23.00 -0.09 15.0 SmValAdml
10.70 -0.01
INSTTRF2040 23.18 -0.09 16.2 TotBd2
-0.03
...
-0.01
-1.05
-0.37
-0.39
...
...
-0.01
-0.01
-0.11
-0.31
-0.06
-0.24
-0.34
-0.17
-0.18
-0.35
5.5
2.6
1.4
23.1
2.9
11.3
1.3
2.2
2.9
1.5
23.0
15.6
22.1
11.6
11.5
7.5
11.0
14.9
16.8
22.8
15.1
11.8
20.3
13.8
14.6
2.1
9.1
11.1
12.5
13.8
15.0
16.2
16.7
16.7
6.6
1.4
7.5
11.0
11.4
15.9
13.3
7.5
2.8
Dec30 /Dec15
Dec11 /Nov10
Net YTD
NAV Chg % Ret
TotIntl
TotSt
17.76 -0.07
63.93 -0.31
VANGUARD INSTL FDS
BalInst
33.84 -0.11
DevMktsIndInst 14.07 -0.06
DevMktsInxInst 21.99 -0.09
81.68 -0.49
ExtndInst
69.16 -0.23
GrwthInst
InPrSeIn
10.43 -0.01
233.13 -1.09
InstIdx
InstPlus
233.15 -1.09
57.37 -0.28
InstTStPlus
40.64 -0.35
MidCpInst
MidCpIstPl
200.45 -1.70
68.10 -0.39
SmCapInst
...
STIGradeInst 10.68
10.74 -0.01
TotBdInst
10.70 -0.01
TotBdInst2
10.74 -0.01
TotBdInstPl
TotIntBdIdxInst 32.74 -0.01
TotIntlInstIdx r 118.81 -0.43
TotItlInstPlId r 118.83 -0.43
63.96 -0.31
TotStInst
39.71 -0.24
ValueInst
Western Asset
CorePlusBdI
NA
...
22.9
15.5
10.4
22.1
22.1
13.3
21.8
1.4
16.0
16.1
15.5
14.1
14.1
11.3
2.2
2.9
2.9
2.9
1.5
23.0
23.0
15.6
11.7
NA
12.4
16.0
10.4
4.8
23.7
26.4
13.4
13.3
1.6
21.8
18.9
7.2
1.4
38.8
3.5
3.9
8.1
14.1
6.6
4.5
IPO Scorecard
Performance of IPOs, most-recent listed first
Company SYMBOL
IPO date/Offer price
% Chg From
Wed3s Offer 1st-day
close ($) price close
Ablynx
ABLX Oct. 25/$17.50
FAT Brands
FAT Oct. 23/$12.00
RISE Edu
REDU Oct. 20/$14.50
22.51
28.6
...
11.10
–7.5
–1.9
12.21
–15.8 –26.5
Sea Ltd.
SE Oct. 20/$15.00
13.73
–8.5 –15.6
MongoDB
MDB Oct. 19/$24.00
31.00
29.2
–3.3
Company SYMBOL
IPO date/Offer price
% Chg From
Wed3s Offer 1st-day
close ($) price close
Mosaic Acquisition
10.13
MOSC.U Oct. 19/$10.00
Qudian
26.39
QD Oct. 18/$24.00
OptiNose
19.91
OPTN Oct. 13/$16.00
1.3
–0.2
10.0
–9.6
24.4
4.8
CarGurus
CARG Oct. 12/$16.00
29.01
81.3
5.2
OrthoPediatrics
KIDS Oct. 12/$13.00
17.86
37.4
–7.1
Sources: WSJ Market Data Group; FactSet Research Systems
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.
B10 | Thursday, October 26, 2017
COMMODITIES
Futures Contracts
Contract
High hilo
Low
Open
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
3.1700
3.1760
3.1610
3.1715 –0.0150
Oct
Dec
3.1985
3.2030
3.1440
3.1830 –0.0150
Gold (CMX)-100 troy oz.; $ per troy oz.
Oct
1269.90 1275.20
1269.90 1275.40
0.40
Dec
1278.00 1281.30
1272.00 1279.00
0.70
Feb'18
1282.40 1285.20
1276.10 1283.20
0.70
April
1281.00 1288.00
1280.00 1287.00
0.70
June
1290.10 1291.90
1284.00 1291.00
0.80
Dec
1303.20 1304.60
1300.80 1303.40
1.00
Palladium (NYM) - 50 troy oz.; $ per troy oz.
985.00
985.00 s t 985.00
959.20 –3.10
Oct
Dec
961.90
968.00
948.35
958.10 –3.10
March'18 947.20 958.55
940.25
949.40 –2.90
Platinum (NYM)-50 troy oz.; $ per troy oz.
921.20
921.20
921.20
924.00
1.20
Oct
Jan'18
926.50
926.90
914.50
926.70
1.20
Silver (CMX)-5,000 troy oz.; $ per troy oz.
16.890
16.945
16.890
16.868 –0.039
Oct
Dec
16.960
17.050
16.810
16.925 –0.041
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
52.56
52.57
51.89
52.18 –0.29
Dec
Jan'18
52.75
52.77
52.13
52.43 –0.24
Feb
52.85
52.85
52.29
52.59 –0.20
March
52.92
52.92
52.39
52.71 –0.16
June
52.78
52.80
52.38
52.72 –0.08
Dec
51.95
51.98
51.63
51.94 –0.05
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
1.8291
1.8389
1.8031
1.8182 –.0039
Nov
Dec
1.8292
1.8395
1.8035
1.8183 –.0043
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
1.7334
1.7429 s
1.7004
1.7348 .0193
Nov
Dec
1.6887
1.6959 s
1.6588
1.6861 .0127
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
2.991
2.999
2.913
2.919 –.055
Nov
Dec
3.153
3.156
3.076
3.082 –.053
Jan'18
3.273
3.275
3.199
3.203 –.054
Feb
3.276
3.278
3.201
3.205 –.055
March
3.230
3.231
3.162
3.165 –.051
April
2.990
2.994
2.962
2.967 –.022
Dec
March'18
Open
interest
Settle
123.30
127.00
125.30
128.95
123.10
126.90
124.10
127.80
.90 121,369
.85 61,606
14.30
14.36
14.37
14.45
14.14
14.24
14.18
14.28
–.10 435,011
–.08 130,114
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
March
May
660
173,274
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
27.03
March
27.06
27.03
27.04
Cotton (ICE-US)-50,000 lbs.; cents per lb.
234
392,827
74,670
16,065
12,306
10,788
Dec
March'18
69.57
69.10
69.90
69.44
69.12
68.89
69.31
69.06
150.55
150.50
156.55
154.10
150.50
150.30
153.35
152.70
–.01
1.75
1.50
1,129
5,628
Interest Rate Futures
1
29,706
3,620
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
151-160 151-200
150-140 150-290 –25.0 739,886
Dec
March'18 150-100 150-100
149-080 149-230 –25.0
255
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
124-205 124-220
124-060 124-145
–9.0 3,156,130
Dec
March'18 124-100 124-105
123-270 124-025 –10.0 15,143
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
117-005 117-020
116-265 116-307
–4.2 3,021,320
Dec
March'18 116-232 116-250
116-200 116-227
–4.7
6,453
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
107-215 107-225
107-202 107-212
–1.0 1,697,991
Dec
March'18 107-157 107-162
107-150 107-155
–1.5
5,751
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
98.848
98.848
98.845
98.845
… 233,756
Oct
Jan'18
98.630
98.635
t 98.625
98.635
… 347,651
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
100.297 100.328
t 99.875 100.188 –.344 29,156
Dec
1 Month Libor (CME)-$3,000,000; pts of 100%
98.5650 98.5650
t 98.5650 98.5600 –.0075
2,264
Dec
Jan'18
98.5400 98.5400
t 98.5400 98.5375 –.0075
21
Eurodollar (CME)-$1,000,000; pts of 100%
98.5875 98.5875
98.5800 98.5825 –.0025 99,834
Nov
Dec
98.4900 98.4950
98.4800 98.4900
… 1,783,959
March'18 98.3500 98.3550
98.3350 98.3450 –.0100 1,295,790
Dec
98.0600 98.0600
98.0300 98.0450 –.0250 1,619,179
6
69,047
110
142,668
601,728
298,794
120,462
237,670
200,659
257,203
32,574
120,730
43,601
147,648
24,446
274,960
202,045
83,878
174,458
128,611
Currency Futures
Nov
Dec
.8786
.8799
.8818
.8833
t
Nov
Dec
.7888
.7890
.7900
.7918
t
Nov
Dec
1.3142
1.3152
1.3272
1.3291
1.3125
1.3130
1.3262
1.3274
Dec
March'18
1.0123
1.0196
1.0166
1.0232
1.0094
1.0164
1.0143 –.0006
1.0212 –.0006
.7774
.7771
.7769
.7741
.7773
.7700
.7781
.7780
.7776
.7741
.7773
.7700
.8761
.8768
.8801 –.0012
2,583
.8814 –.0013 272,574
.7805
.7805
.7807 –.0085
1,014
.7809 –.0084 168,448
Canadian Dollar (CME)-CAD 100,000; $ per CAD
352.50
355.25
350.50
351.00
Dec
March'18 366.50 369.25
364.50
365.25
Oats (CBT)-5,000 bu.; cents per bu.
279.25
282.75
275.50
276.25
Dec
March'18 278.25 281.00
276.00
276.50
Soybeans (CBT)-5,000 bu.; cents per bu.
975.75
983.25
975.25
975.50
Nov
Jan'18
986.00
993.75
985.75
986.25
Soybean Meal (CBT)-100 tons; $ per ton.
314.80
317.80
314.30
315.40
Dec
Jan'18
317.00
319.80
316.50
317.50
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
34.35
34.69
34.20
34.26
Dec
Jan'18
34.48
34.83
34.36
34.43
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
1163.50 1183.00
1160.00 1166.50
Nov
Jan'18
1192.50 1214.00
1191.00 1197.00
Wheat (CBT)-5,000 bu.; cents per bu.
438.00
443.00
433.75
435.50
Dec
March'18 455.75 460.75
452.00
453.75
Wheat (KC)-5,000 bu.; cents per bu.
434.00
438.75
430.75
433.50
Dec
March'18 451.75 456.50
448.50
451.25
Wheat (MPLS)-5,000 bu.; cents per bu.
619.50
624.75
617.00
621.50
Dec
March'18 632.00 636.50
629.50
633.25
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
155.150 155.500
154.700 154.850
Oct
Jan'18
155.000 157.100 s
154.575 155.600
Cattle-Live (CME)-40,000 lbs.; cents per lb.
113.750 114.300
112.800 113.025
Oct
Dec
119.375 120.475
118.825 119.075
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
63.875
64.675
63.675
64.475
Dec
Feb'18
68.575
69.775 s
68.425
69.600
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
439.00
441.20
434.60
439.70
Nov
Jan'18
430.10
434.20
428.30
432.60
Milk (CME)-200,000 lbs., cents per lb.
16.61
16.71
16.60
16.60
Oct
Nov
16.03
16.23
15.98
16.13
Cocoa (ICE-US)-10 metric tons; $ per ton.
2,083
2,112
2,064
2,079
Dec
March'18
2,088
2,114
2,071
2,085
Coffee (ICE-US)-37,500 lbs.; cents per lb.
–1.75 773,983
–1.50 313,717
–.75
.25
British Pound (CME)-£62,500; $ per £
5,044
1,824
Swiss Franc (CME)-CHF 125,000; $ per CHF
… 189,070
.50 273,148
–.08 161,737
–.04 95,196
–.50 146,729
–.50 86,271
–.0094
1,098
–.0094 131,524
–.0094
558
–.0094
369
–.0093
704
–.0093
242
.05136
.05061
.05199 .00039 179,787
.05122 .00038
630
1.1766
1.1787
1.1818
1.1840
.0019
6,304
.0019 428,548
Mini DJ Industrial Average (CBT)-$5 x index
1.75
1.25
35,926
24,510
–.275
.600
2,422
24,019
Dec
23416 s
23404 s
23389
23379
23203
23194
23301
23289
2541.80
2558.50
S&P 500 Index (CME)-$250 x index
2566.30
2566.30
Mini S&P 500 (CME)-$50 x index
–102 160,585
–99
1,477
–8.80
60,209
2564.75 2566.25
2541.50 2558.50 –8.75 3,110,298
Dec
March'18 2564.75 2566.25
2542.00 2558.75 –8.75 49,682
Mini S&P Midcap 400 (CME)-$100 x index
1828.10 1829.30
1807.00 1819.70 –11.10 92,033
Dec
Mini Nasdaq 100 (CME)-$20 x index
6073.5
6087.5
6011.0
6064.5 –15.0 278,150
Dec
March'18 6085.3 6100.0
6024.0
6077.5 –14.8
1,207
Mini Russell 2000 (ICE-US)-$100 x index
1499.60 1500.50
1481.90 1498.00 –3.50 64,532
Dec
Mini Russell 1000 (ICE-US)-$100 x index
1420.40 1420.70
1408.70 1418.70 –4.40
267
Dec
U.S. Dollar Index (ICE-US)-$1,000 x index
93.83
93.89
93.48
93.58
–.08 48,460
Dec
March'18
93.59
93.59
93.19
93.28
–.08
2,022
–.600
2,349
–.450 140,943
.450 114,731
.950 50,190
3,798
4,614
t
t
.7694
.7690
.7689
.7686
.7685
.7680
63,686
167
Index Futures
Dec
March'18
–.01
.18
.7690
.7685
.7685
.7683
.7680
.7690
.05148
.05215
Dec
March'18 .05135 .05136
Euro (CME)-€125,000; $ per €
1.1774
1.1829
Nov
Dec
1.1796
1.1852
–2.50 271,880
–2.25 111,671
2,598
3,695
t
Mexican Peso (CME)-MXN 500,000; $ per MXN
3,278
6,318
–.90
–1.10
.0117
1,089
.0117 181,782
Australian Dollar (CME)-AUD 100,000; $ per AUD
Nov
Dec
Jan'18
Feb
March
June
1.20 138,481
1.10 91,503
6.00
6.00
–5 94,958
–4 100,654
Source: SIX Financial Information
Inventories, 000s barrels
Crude oil and
petroleum prod
Crude oil
excluding SPR
Gasoline
Finished gasoline
Reformulated
Conventional
Blend. components
1,271,858
...
4-week
avg
1,286
5-year
avg
Expected Previous
Current change
week
1,198
9,819
...
-2,200
...
unch.
...
...
...
456
222
24
0
24
199
468
226
25
0
25
201
460
220
22
0
22
198
421
211
34
0
34
177
8,123
233
36
0
36
198
...
...
...
...
...
...
3,595
...
4
4
3
4
...
...
...
40,770
129,241
11,356
117,884
32,143
296,840
...
-900
...
...
...
...
42
134
12
123
35
294
44
152
14
138
38
282
42
133
11
122
35
296
40
129
19
111
38
257
326
133
7
126
119
771
...
...
...
...
...
...
72
107
0
107
262
956
Net crude, petroleum
products, incl. SPR
1,943,235
...
1,956 2,027
1,958
1,893
2,156
...
Kerosene-type
jet fuel
Distillates
Heating oil
Diesel
Residual fuel oil
Other oils
Total petroleum
product
20,010
Expected Previous
change
week
...
19,142
Year
ago
20,465
4-week
avg
4-week
avg
5-year
avg
9,778
7,483 7,016
690 834
90
27
0
0
90
27
600 807
9,358
7,609
661
79
0
79
583
7,570
408
23
0
23
384
...
...
...
90
74
19
55
157
776
191
99
18
82
163
929
55
107
36
71
219
874
2,870 4,468
2,908
5,564
5-year
avg
19,646 19,512
...
9,136
9,118
9,293
9,026
jet fuel
Distillates
Residual fuel oil
Propane/propylene
Other oils
1,859
4,101
604
1,177
2,955
...
...
...
...
...
1,641
3,477
531
935
3,421
1,547
4,166
601
1,130
3,903
1,692
3,808
466
1,002
3,385
1,519
3,890
196
...
...
4250
Natural gas,
lower 48 states
3250
t
2250
1250
Five-year average
for each week
N D J F M A M J
2017
2016
250
J A S O
Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions.
Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Largest 100 exchange-traded funds, latest session
ETF
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
10.32
90.61
53.52
24.20
5.57
67.08
26.65
96.53
82.99
72.19
109.75
105.17
122.89
64.70
55.24
61.63
257.04
181.57
74.43
58.50
109.12
94.88
71.18
51.31
12.29
120.56
88.34
115.59
106.54
69.77
41.88
–2.46 –18.1
–0.38 11.3
3.5
–0.28
–0.41 20.3
–0.20 –18.7
–0.70 –10.9
–0.60 14.6
–0.67 11.4
–0.14 20.4
–0.99 16.0
1.4
–0.09
0.2
–0.06
0.3
–0.06
–0.37 20.6
–0.22 30.1
–0.37 22.1
–0.47 14.2
9.8
–0.61
8.2
–0.52
–0.49 14.1
1.0
–0.06
7.1
–0.57
–0.45 16.3
–0.14 13.5
0.16 10.9
2.9
–0.26
2.1
–0.28
4.9
–0.17
0.2
–0.08
–0.36 17.9
0.92 25.6
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
LBMA Platinum Price PM
*922.0
Platinum,Engelhard industrial
919.0
Platinum,Engelhard fabricated
1019.0
Palladium,Engelhard industrial
978.0
Palladium,Engelhard fabricated
1078.0
Aluminum, LME, $ per metric ton
*2144.0
Copper,Comex spot
3.1715
Iron Ore, 62% Fe CFR China-s
61.1
Shredded Scrap, US Midwest-s,w
286
Steel, HRC USA, FOB Midwest Mill-s
n.a.
Metals
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
69.03
62.27
45.79
43.46
57.67
321.45
110.75
127.72
142.12
119.78
179.62
148.45
124.14
151.39
199.44
85.41
206.76
145.92
109.47
38.42
113.14
84.25
105.65
122.84
115.40
101.82
147.43
46.57
23.13
37.19
121.35
33.76
61.75
–0.39
–0.21
–0.22
–0.09
–0.81
–1.14
–0.24
–0.40
–0.51
–0.59
–0.52
–0.48
–0.42
–0.51
–0.74
–0.67
–0.55
–0.42
–0.56
–0.44
–0.11
–0.02
–0.16
–0.48
–0.86
...
–0.38
–0.41
–0.22
–0.32
0.02
–0.38
–0.55
19.6
24.9
30.8
25.6
18.0
21.1
2.4
21.8
14.2
6.9
16.7
10.1
4.4
13.8
11.5
6.2
13.5
19.8
8.0
3.3
–0.0
–0.2
0.8
3.1
18.5
0.5
24.4
12.0
–1.0
2.0
10.7
22.0
14.0
Food
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
Fibers and Textiles
Gold, per troy oz
1280.82
1376.88
1275.00
1415.25
*1278.30
*1276.45
1329.12
1341.90
1341.90
1548.88
1255.70
1341.90
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
Grains and Feeds
n.a.
71
n.a.
80.4
470.2
233
88
223
3.0625
374.00
24.00
7.8300
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
Silver, troy oz.
16.9800
20.3760
16.9200
21.1500
£12.7500
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
0.6100
0.6881
*80.40
n.a.
n.a.
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
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
60.99
233.16
331.07
255.29
93.14
60.65
54.70
22.83
157.30
128.47
97.16
43.76
44.43
58.17
53.32
134.38
153.99
82.57
84.21
87.66
117.29
148.60
106.64
82.59
234.50
79.62
79.96
142.16
81.55
54.64
55.41
131.40
71.67
101.83
64.78
57.18
176.85
167.84
0.8421
2.2700
170.25
171.25
74.50
2400
1.2268
1.4176
0.8850
15.40
0.79
66.53
n.a.
0.9430
n.a.
160.75
Fats and Oils
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
34.5500
0.2300
n.a.
0.3289
0.2500
0.3100
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 10/24
Source: WSJ Market Data Group
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
2.8
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
1931.60
Total
return
close
2.640 2.090 2.790
U.S. Aggregate
U.S. Corporate Indexes Bloomberg Barclays
1978.93
1.9
Mortgage-Backed
1947.63
1.5
Ginnie Mae (GNMA) 2.850 2.120 3.090
2.900 2.230 3.120
3.200 2.920 3.520
1160.04
2.1
Fannie mae (FNMA) 2.920 2.270 3.120
2616.30
3.7 Intermediate
2.730 2.360 3.010
1786.75
2.2
Freddie Mac (FHLMC) 2.930 2.280 3.130
3804.27
8.3 Long term
4.220 4.110 4.710
521.50
564.48
3.7 Double-A-rated
2.670 2.290 2.870
364.91
3.480 3.280 3.870
5.1
2765.86
U.S. Corporate
5.8
714.26
Triple-B-rated
High Yield Bonds Merrill Lynch
7.4
417.47
High Yield Constrained 5.446 5.373 6.858
4.5 Muni Master
1.953 1.677 2.516
5.1
7-12 year
1.976 1.674 2.618
408.76
5.9
12-22 year
2.397 2.114 3.047
393.61
6.1
22-plus year
2.911 2.577 3.622
Global Government J.P. Morgan†
0.6
10.330 9.584 13.189
540.41
5.130 4.948 6.448
751.67
-0.2
Canada
2.100 1.390 2.190
7.6
Global High Yield Constrained 4.982 4.934 6.450
368.74
-0.1
EMU§
1.167 0.757 1.363
6.8
Europe High Yield Constrained 2.122 2.121 3.814
706.17
-0.1
France
0.910 0.500 1.210
Germany
0.520 0.150 0.620
Japan
0.430 0.170 0.460
8.7 Triple-C-rated
418.20
2867.65
6.9
High Yield 100
379.04
306.41
506.31
U.S Agency Bloomberg Barclays
Global Government 1.490 1.050 1.560
-1.6
1635.17
1.9
U.S Agency
2.000 1.330 2.000
287.39
1464.81
1.3
10-20 years
1.830 1.140 1.830
558.15
-1.4
Netherlands
0.660 0.260 0.760
3317.07
6.2
20-plus years
3.040 2.670 3.460
908.37
-0.6
U.K.
1.690 1.340 1.790
2.840 2.470 3.090
802.41
4.4 Yankee
-0.3
8.6 Emerging Markets ** 5.496 5.279 6.290
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Global Government Bonds: Mapping Yields
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
1.500
2.250
1.581
2.417
1.427
2.220
0.852
1.760
1.895 t
2.770 t
l
1.939
1.971
1.671
28.4
35.8
81.9
l
2.784
2.807
2.286
32.7
36.7
52.6
France 2 -0.529 t
10 0.756 s
l
-0.526
-0.513
-145.5
0.751
0.699
-0.603 -214.0
0.306
-168.7
-210.7
l
-166.6
-145.3
Germany 2 -0.701 s
10 0.483 s
l
-0.701
-0.706
-228.2
-150.3
l
0.478
0.403
-0.651 -231.2
0.032 -196.0
-193.9
-172.8
Italy 2 -0.134 s
10 2.032 t
l
-0.148
-0.107
-0.083
-174.5
-172.9
-93.5
l
2.062
2.105
1.388
-41.1
-35.5
-37.2
Japan 2 -0.131 s
10 0.074 s
l
-0.136
-0.137
-0.249
-110.2
0.069
0.024
-174.2
-0.064 -236.9
-171.7
l
-234.7
-182.4
Spain 2 -0.301 t
10 1.642 t
l
-0.289
-0.317
-0.230
-191.1
-187.0
-108.2
l
1.647
1.615
1.082
-80.1
-77.0
-67.8
0.493 s
1.408 s
l
0.475
0.435
0.248
-111.8
-110.6
-60.4
l
1.358
1.336
0.987
-103.5
-105.9
-77.3
10
0.500
0.050
2.050
0.100
0.100
2.750
1.450
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
l
Australia 2
0.000
Year ago
l
2.750
2.750
Month ago
U.S. 2 1.611 s
10 2.443 s
2.750
0.000
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
1.750
U.K. 2
4.250
10
Source: Tullett Prebon
Investment-grade spreads that tightened the most…
t
9,314
Wednesday, October 25 ,2017
Closing Chg YTD
Symbol Price (%) (%)
Other metals
311.90
n.a.
7.6400
4.2350
3.6550
5.3500
in that same company’s share price.
Billions of cubic feet; weekly totals
Finished
motor gasoline
Kerosene-type
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
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
Corporate Debt
Natural gas storage
Weekly Demand, 000s barrels per day
Current
Year
ago
9,716 9,068
457,341
216,869
22,083
41
22,042
194,786
Natural gas (bcf)
0.9675
1.0581
2.930
2.900
2.930
2.650
2.720
0.820
2.830
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
Wednesday
16.8900
12784
** EMBI Global Index
Imports, 000s barrels per day
1,284 1,332
Wednesday
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
Inventories, imports and demand for the week ended October 20. Current figures are in thousands of barrels or
thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas import
and demand data are available monthly only.
Year
ago
Wednesday
Energy
2448.73
Macro & Market Economics
Watching the Gauges: U.S. Supply and Demand
Expected Previous
Current change
week
Wednesday, October 25, 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.
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Agriculture Futures
Corn (CBT)-5,000 bu.; cents per bu.
Cash Prices
2,710
–.23 117,276
–.07 75,983
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
Nov
Jan'18
Open
interest
Chg
WSJ.com/commodities
–0.51
–0.48
–0.62
–0.50
–0.52
–0.54
–0.44
–0.52
–0.37
–0.54
–0.14
–0.41
–0.22
–0.07
–0.34
–0.34
–0.21
–0.61
–0.15
–0.18
–0.48
–0.83
–0.90
–0.29
–0.48
–0.05
–0.03
–0.58
–0.09
...
–0.36
–0.52
–0.40
–0.57
–0.37
–0.82
14.5
18.0
9.7
14.2
8.9
25.4
12.6
9.1
29.5
6.2
14.1
19.8
24.2
21.3
20.7
20.5
21.5
9.0
1.4
2.3
14.6
12.9
9.7
0.1
14.2
0.2
0.7
10.2
0.9
0.6
20.8
13.9
17.5
9.5
12.9
15.4
Issuer
Symbol Coupon (%)
JPMorgan Chase
CA
Goldman Sachs
US Bank NA
JPM
CA
GS
USB
7.900 April 30, ’49
4.700 March 15, ’27
5.375 March 15, ’20
2.125 Oct. 28, ’19
Citigroup
General Electric
Duke Energy
Morgan Stanley
C
GE
DUK
MS
6.300
3.150
3.950
3.125
Maturity
May 15, ’49
Sept. 7, ’22
Aug. 15, ’47
July 27, ’26
Current
Spread*, in basis points
One-day change
–143
142
42
18
–26
–25
–18
–12
Last week
Stock Performance
Close ($)
% chg
–107
n.a.
55
n.a.
101.02
34.13
241.71
…
0.10
–0.47
–1.28
…
176
31
108
95
73.62
21.50
87.75
50.53
–0.84
–1.78
–0.27
–1.06
101
32
309
n.a.
73.62
21.50
6.41
…
–0.84
–1.78
–0.31
…
12
10
10
10
n.a.
96
n.a.
n.a.
...
111.25
33.49
…
...
–0.82
–3.93
…
Bond Price as % of face value
Current
One-day change
Last week
2.75
2.25
2.00
1.99
105.250
79.000
88.375
99.500
10.78
9.30
1.82
19.95
17.05
5.68
1.11
–1.53
n.a.
83.000
91.000
n.a.
3.36
...
16.82
...
1.51
...
3.00
...
94.250
75.000
89.625
103.000
...
5.76
…
...
...
–3.84
…
...
n.a.
103.500
82.000
97.250
44.27
...
3.36
325.84
–1.36
...
1.51
–3.41
174
26
100
84
–11
–11
–9
–9
…And spreads that widened the most
5.875 March 27, ’49
5.000 Jan. 21, ’49
4.625 Sept. 15, ’21
2.950 Dec. 18, ’22
Citigroup
General Electric
Nabors Industries
Teva Pharmaceutical Finance
C
GE
NBR
TEVA
MZ Funding
Prudential Financial
AT&T
United Airlines
MZFUND 14.000
PRU
5.625
T
6.550
UAL
4.000
Jan. 20, ’20
June 15, ’43
Feb. 15, ’39
Oct. 11, ’27
95
65
312
195
20
1059
97
214
101
19
14
14
High-yield issues with the biggest price increases…
Issuer
Symbol
Dynegy
McClatchy
Windstream Services
Beazer Homes USA
DYN
MNI
WIN
BZH
7.625
Nov. 1, ’24
6.875 March 15, ’29
7.750 Oct. 15, ’20
5.875 Oct. 15, ’27
Weatherford International
Talen Energy Supply
Uniti
Carlstar
WFT
TLN
UNIT
CTPTRA
6.800
6.500
7.125
8.250
Coupon (%)
Maturity
June 15, ’37
June 1, ’25
Dec. 15, ’24
Dec. 15, ’19
107.250
88.250
87.500
101.992
84.750
84.750
90.625
96.000
1.28
1.25
1.25
1.00
Stock Performance
Close ($)
% chg
…And with the biggest price decreases
Staples
Sears Holdings
Noble Holding International
Bombardier
SPLS
SHLD
NE
BBDBCN
8.500 Sept. 15, ’25
8.000 Dec. 15, ’19
7.750 Jan. 15, ’24
6.125 Jan. 15, ’23
89.125
60.943
88.344
100.750
AmeriGas Partners
Intelsat Jackson Holdings S.A.
Weatherford International
Tesla
APU
INTEL
WFT
TSLA
5.750
9.750
5.950
5.300
101.252
101.500
77.500
97.375
May 20, ’27
July 15, ’25
April 15, ’42
Aug. 15, ’25
–2.63
–2.06
–1.91
–1.88
–1.87
–1.75
–1.63
–1.55
*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.
Thursday, October 26, 2017 | B11
* *
BANKING & FINANCE
Draghi’s Pledge
In Europe, Rates Are Focus How
Helped the Eurozone
BY JON SINDREU
How Central Banks Steer the Bond Market
Investors are preparing for
the European Central Bank to
give them all the complex details of how it will end its
bond-buying program. But
there is one crucial piece of
information they truly care
about: When will interest rates
start going up?
ECB policy makers have repeatedly said they won’t start
raising rates until “well past”
the point when purchases have
stopped, even if inflation were
to suddenly jump. That means
divining the date of the last
purchase is a focus for money
managers across the world.
Many analysts now forecast
that the ECB will say Thursday
that the purchases will end
next September, an extension
of about nine months from the
current target. The central
bank is expected to cut its
purchases in half to €30 billion ($35.3 billion) a month.
Yet if ECB President Mario
Draghi says the speed of the
taper is either faster or slower
than expected, investors will
adjust their rate projections to
match, reshaping the entire
bond market.
In the eurozone, rates have
stayed pegged at minus-0.4%
for a year and a half and if Mr.
Draghi says the speed of the
taper is faster than expected,
bonds could fall and the global
rally propelling stocks to records could be derailed. If
rates aren’t so predictable
anymore, analysts said, financial markets could leave behind years of historically subdued volatility.
In a speech in June, Mr.
Draghi’s hints about a fasterthan-expected reduction of
bond buying gave markets a
jolt. Yields on the 10-year German government bond shot up
to 0.570%, their highest in 18
months, and the euro gained
about 2% against the U.S. dollar. German yields have since
come back down, closing at
0.479% on Wednesday.
The reaction was down to
new expectations of future in-
Short-term interest rates are the main driver of long-term rates…
Yields, monthly
20%
15
10
5
10-year Treasury
1-year Treasury
0
1962
’70
’80
’90
’00
’10
…while the effects of buying bonds remain uncertain.
Total assets
$6 trillion
European Central Bank*
Federal Reserve
4
2
0
2003 ’05
’10
’15
*Converted to dollars using Oct. 24 exchange rate.
Sources: Federal Reserve (yields, Fed assets); European Central Bank (eurosystem assets)
THE WALL STREET JOURNAL.
terest rates, market derivatives called overnight index
swaps suggest. After his statement,
those
derivatives
showed that investors brought
forward their expectation of a
rate rise to December 2018 or
earlier.
They now suggest rates
might stay where they are until around March 2019.
The central bank is
expected to cut its
purchases in half to
€30 billion.
Once the ECB’s taper calendar is clear, “I would expect
the market to focus on the
next step, which is the process
towards rate normalization,”
said Andrew Bosomworth,
head of portfolio management
for Pacific Investment Management Co. in Germany.
This means Mr. Draghi’s
carefully chosen words will
carry most of the ECB’s policy
might going forward, money
managers said, potentially exposing bond markets to more
volatility.
In the U.S., the Federal Reserve has already been down
this road. In 2013, talk by policy makers about reversing
bond buying sent yields on the
10-year Treasury note above
3% from about 1.9%.
By contrast, bond markets
have remained mostly unruffled this month, as Fed officials started unwinding $10
billion of the $4.5 trillion asset portfolio they accumulated
after the 2008 financial crisis—a policy known as quantitative easing, or QE—in a bid
to stoke growth and inflation.
Money managers were initially
jittery about the effects of this
untested experiment, but most
say they are now unconcerned.
“QE was much more impactful when it was implemented than when it will be
undone,” said Myles Bradshaw, head of global aggregate
fixed income at Amundi SA,
Europe’s largest money manager by assets. “Because [the
Fed’s moves] have been so
clearly disconnected from actual interest-rate policy, it’s
not as dramatic.”
Bank of America Merrill
Lynch strategist Athanasios
Vamvakidis called the Fed’s
balance-sheet reduction “a
sideshow to the hiking cycle,”
in a recent note to clients.
Rates in the U.S. have been
rising since 2015.
This issue gets to the core
of a long-running debate for
economists: Did central bankers’ bid to stimulate the economy by buying bonds work,
and how? If it was central
banks’ demand for bonds that
was successful in reducing
borrowing costs, then surely
reversing QE could suddenly
push them up again.
But if QE’s impact was just
on market sentiment, as many
investors now believe, the unwinding might have a much
smaller effect.
A raft of research from
economists and central banks
estimates that QE lowered 10year sovereign-bond yields by
about 1 percentage point in
the U.S. and U.K. and by half a
percentage point in the eurozone. There is debate, though,
on what exactly was pushing
those yields lower. Was it the
bond buying itself or just the
fact that such all-out policies
are a way to persuade investors that rates will stay low
for very long?
“It’s mostly about sentiment,” said Charlie Diebel,
head of rates at Aviva Investors.
The importance many investors are attaching to signals about the direction of interest rates, more than the
size of a central bank’s balance
sheets, could suggest the actual bond buying had a smaller
effect than once anticipated.
ECB’s extreme measures still
send out ripples..................... B13
BY PAT MINCZESKI
AND CHRISTOPHER WHITTALL
The European Central Bank
is likely to scale back its bond
purchases Thursday. But all of
that buying—the ECB has been
doing it since March 2015—
has already helped reshape eurozone bond markets and
given a needed boost to the finances of southern European
countries.
Thanks to bond buying and
record-low interest rates, governments have been able to
borrow on exceptionally cheap
terms. The bonanza began in
earnest in July 2012, when
ECB President Mario Draghi
pledged to do “whatever it
takes” to save the euro. That
pushed down bond yields
across the eurozone, and they
have been falling more or less
ever since.
Countries have effectively
refinanced their big debt piles
at lower rates, and they have
also borrowed for longer
terms, locking in those good
deals.
“From a debt-service-cost
point of view, Italy is in great
shape now because during this
low-interest-rate environment,
they’ve been busy borrowing
away,” said Laurence Mutkin,
global head of G-10 rates strategy at BNP Paribas SA.
What It Took
Borrowing costs have declined across the eurozone…
Weighted 5%
average
4
interest rate
on debt 3
outstanding
2
1
0
2012: ECB President Mario Draghi
says the ECB will do 'whatever it
takes' to save the euro.
’07 ’08 ’09 ’10 ’11
Portugal
Italy
Spain
Euro area
Germany
France
’12 ’13 ’14 ’15 ’16
…and lower rates have, in turn, reduced countries’ debt-servicing
costs as a share of economic output...
Interest 6%
payments as
a percentage
4
of gross
domestic
product 2
Portugal
Italy
Spain
Euro area
France
Germany
0
’07 ’08 ’09 ’10 ’11
’12 ’13 ’14 ’15 ’16
…encouraging eurozone governments to issue debt with longer maturities.
Years left 8 years
until bonds
mature,
average 7
Portugal
Spain
France
Italy
Germany
6
5
’07 ’08 ’09 ’10 ’11
’12 ’13 ’14 ’15 ’16
Sources: BNP Paribas (rates, payments); national ministries
of finance and treasury agencies (maturities)
THE WALL STREET JOURNAL.
Visa’s Earnings Rise 11% as Partnerships Aid Results
Visa Inc. reported an 11%
rise in profit for its fiscal
fourth quarter, adding fuel to
a robust rally this year for the
card company’s stock.
Earnings were $2.14 billion
for the quarter, or 90 cents a
share, beating analysts’ estimates of 85 cents a share. Net
operating revenue rose 14%
from a year earlier to $4.86
billion, boosted by a 10% rise
in payments volume as consumer card-based spending in
By AnnaMaria
Andriotis
and Allison Prang
the U.S. and abroad continues
to rise.
The San Francisco-based
company forecast robust
growth for the fiscal year that
began Oct 1. Finance chief Vasant Prabhu said that Visa’s
2018 fiscal-year outlook is for
adjusted earnings-per-share
growth at the high end of a
midteens percentage range.
Visa shares ended up 1% at
$109.49 on the New York Stock
Exchange Wednesday, pushing
the stock’s rise this year to
about 40%. The company’s
stock price—which is up about
40% for the year—has helped
fuel a rise in the Dow Jones
Industrial Average, which
crossed the 23000 threshold
this month.
Chief Executive Al Kelly
said on the earnings call that
several drivers of growth contributed to the company’s
strong performance over the
past year. Strong economies
have resulted in increased
consumer spending and the
addition of Visa Europe to the
company’s lineup, which Visa
finished acquiring in June
2016, has also helped to boost
transaction activity on the
Visa network. Before the acquisition, Visa Europe was a
separate entity that was
owned by banks and other financial firms.
Visa has also benefited from
new partnerships that kicked
in last year, most notably with
Costco Wholesale Corp. The
store’s credit card switched
from running on the American
Express Co. network to Visa in
June 2016. USAA, one of the
country’s largest issuers of
debit and credit cards,
switched to Visa from Master-
Saudi Fund Sets a Lofty Asset-Growth Goal
BY MARGHERITA STANCATI
AND MAUREEN FARRELL
Carlyle Taps
Co-CEOs in
Its Plan for
Succession
BY MIRIAM GOTTFRIED
FAISAL AL NASSER/REUTERS
RIYADH, Saudi Arabia—The
kingdom’s sovereign-wealth
fund, a key engine of its plan
to diversify the economy, laid
out new targets for growth,
saying it aims to nearly double
the value of assets it manages
to around $400 billion by
2020.
That sum includes the expected proceeds from the
planned initial public offering
of up to 5% of state-owned oil
giant Saudi Arabian Oil Co.,
known as Aramco.
The listing, slated for next
year, could raise as much as
$100 billion, Saudi officials
have said.
The Saudi fund, called the
Public Investment Fund, held
assets valued at roughly $224
billion as of September, it said
in a document released on
Wednesday.
It had previously struggled
to calculate the value of its
holdings, estimating them to
be between $200 billion and
$300 billion.
The fund has made a series
of high-profile investments
and announcements since
Saudi Arabia unveiled its longterm plan for an economic
overhaul last year.
On Wednesday, it committed as much as $20 billion to a
$40 billion Blackstone Group
LP vehicle that will primarily
invest in U.S. infrastructure. It
has invested $3.5 billion in
Uber Technologies Inc., and
committed $45 billion to a
technology fund led by SoftBank Group Corp.
The Saudi government, un-
card Inc. last year.
Visa, while a card company
at its core, has been investing
in partnerships that expand its
reach as a payments company—a strategy meant to ensure that the firm will remain
a leader in consumer spending
even if fintech firms or other
payment types grab more
market share. In July, it extended its partnership with
PayPal Holdings Inc. in Europe.
The Saudi wealth fund is investing in a futuristic urban-development project called Neom. Visitors at a 3-D presentation of the city.
der the leadership of Crown
Prince Mohammed bin Salman,
wants the fund to create
sources of income outside of
oil by investing at home and
abroad.
In recent months, it announced it will participate in
several big infrastructure projects in Saudi Arabia, including
a $500 billion futuristic urban-
development project presented
this week. The fund said it
would be a key investor in the
planned city, dubbed Neom.
The fund’s head, Yasir Othman al-Rumayyan, on Wednesday said that the fund eventually will seek a return in
excess of 8% each year but in
the shorter term by 2020, it
will seek a return of 4% to 5%,
up from an average of 3% over
the past few years.
The fund will focus on job
creation and encouraging its
partners to do more in Saudi
Arabia, said Mr. Rumayyan,
speaking during an investment
conference it organized in Riyadh.
In tune with the Saudi government’s goal of creating
more jobs for Saudis in the
private sector, the fund aims
to create 20,000 new jobs by
2020 through investments in
sectors including real estate,
technology and entertainment.
That would help increase
the fund’s contribution to
Saudi Arabia’s gross domestic
product to 6.3% from 4.4% today.
Carlyle Group LP is elevating two executives to top leadership roles at the private-equity firm, as co-founders David
Rubenstein and William Conway step back from day-to-day
operations.
Kewsong Lee, 52 years old,
and Glenn Youngkin, 50, will
become co-chief executives
and join Carlyle’s board, the
Washington firm announced
Wednesday.
Mr. Lee will focus on Carlyle’s corporate private equity,
global-credit and capital-markets businesses, in addition to
corporate strategy. Mr. Youngkin will oversee the firm’s real
estate, energy and infrastructure businesses.
Together, the two will have
“full responsibility, authority
and accountability for the
firm’s performance,” Carlyle
said. The changes will take
place in January.
Messrs. Rubenstein and
Conway, currently co-CEOs
and 68, will become co-executive chairmen. Daniel D’Aniello, 71, Carlyle’s current
chairman and another cofounder of the firm, will assume the role of chairman
emeritus and continue to
serve on the board.
Carlyle is the latest big private-equity firm to promote
younger leaders and make succession plans clearer as their
founders age.
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
B12 | Thursday, October 26, 2017
* ***
THE WALL STREET JOURNAL.
MARKETS
Market Calm Extends to China
Stocks globally are
placid, but traders also
see intervention from
Beijing as playing role
Trade Winds Die Down
Shanghai Composite's number of 1% daily moves each year
200
175
150
125
100
75
50
25
0
1993 ’95
2000
’05
*Through Oct. 23
Source: FactSet
’10
’15
’17*
THE WALL STREET JOURNAL.
markets seems to conflict with
efforts by China over many
years to open its economy and
markets to the rest of the
world. Chinese President Xi
Jinping said in his congressopening speech last week that
markets would continue to
play a “decisive” role in the allocation of resources.
Beginning in late 2014, Chinese authorities made it easier
for ordinary investors to bor-
row money to buy stocks, while
the Communist Party-backed
People’s Daily contended the
market’s rise was part of
China’s “grand development
strategy.” Months later, after
the market suddenly slumped
by over 40%, the securities regulator clamped down on such
margin trading. It also imposed
a six-month ban on share sales
by major corporate shareholders and a temporary halt for
initial public offerings.
Some restrictions remain:
Big shareholders are forbidden
from making large block share
sales. Although IPOs have resumed, long-discussed reforms
to make them easier have been
delayed. Market rules still prevent stocks moving up or
down by over 10% each day.
Since 2015, traders say Beijing has also used the “national team”—large statebacked companies—to help
steady markets by buying
shares when the market falls
sharply and selling when it
rises.
This year’s subdued volatility doesn’t mean China’s markets have truly modernized,
said Michael Pettis, a finance
professor at Peking University. He said that the quality
of financial information still
needs to improve. “Real value
investing requires corporate
transparency, high quality of
data and predictable government behavior,” said Mr. Pettis. “In China, none of these is
easily available yet.”
—Yifan Xie in Shanghai
and Steven Russolillo
in Hong Kong
STEPHEN BRASHEAR/ASSOCIATED PRESS
The placid trading that has
swept global markets this year
has reached an unlikely destination: China.
Once synonymous with
large daily swings, Chinese
stock markets are having one
of their calmest stretches ever.
The Shanghai Composite Index, which tracks the fourthbiggest global stock market by
market value, has moved more
than 1% on 10 trading days
this year. That is down from
65 times for all of 2016 and
141 times in 2015.
The past 30 trading days,
coinciding in part with the
19th National Congress of the
Communist Party, have been
the least volatile of any 30-day
period since the Shanghai
Stock Exchange reopened in
the early 1990s, according to
an analysis of FactSet data.
A number of factors help to
explain the muted trading,
ranging from record-low stock
volatility in the U.S. to a stable
economic backdrop in China.
Institutional investors, known
for a longer-term focus, are
taking on a greater share of
trading in Chinese markets.
Perhaps most important,
many investors and traders
say Beijing has taken on a
more muscular role in markets, following a spectacular
market boom and bust in 2015.
Securities regulators have
called many brokerages and
funds over the past year, urging them to say publicly they
were bullish about stocks and
to refrain from selling shares,
market participants say. Some
traders cite the price-supporting effect of the “national
team” of state investment
funds, which they say steps in
to buy shares when prices fall.
The developments have left
China’s armies of retail investors increasingly disillusioned.
While lower volatility can
serve the government’s goal of
projecting an image of stability, it can sharply reduce the
opportunities for quick profits
that many traders depend on.
The perception of increased
state involvement in stock
Shares of Chipotle Mexican Grill fell 15%—their worst day in five years—after the chain missed forecasts and said it would open fewer locations than expected.
Blue Chips Drop Broadly on Weak Profits
BY AMRITH RAMKUMAR
AND RIVA GOLD
A raft of downbeat earnings
sparked broad declines in U.S.
stocks Wednesday, sending the
Dow industrials down 112 points
in their worst day since early
September.
Results from American companies have generally been
solid, investors and analysts
said. But after several quarters
of strong
WEDNESDAY’S e a r n i n g s ,
MARKETS
some cautioned that
expectations are high, which could limit
gains in stocks.
“Big beats don’t surprise
people anymore,” said Mohit
Bajaj, director of ETF trading
solutions at WallachBeth Capital. “The downward pressure is
much stronger,” he said.
The Dow Jones Industrial Average closed down 0.5% at
23329.46 after shedding 191
points earlier in the session.
The S&P 500 declined 11.98
points, or 0.5%, to 2557.15, with
all 11 of its major sectors post-
Retreating
Shares of Chipotle Mexican Grill posted their biggest one-day drop
since 2012, weighing on the S&P 500 along with Advanced Micro Devices.
0%
S&P 500
–5
–10
Advanced Micro Devices
Chipotle
–15
9:30 10
11
noon
Source: FactSet
ing losses. Both indexes had
their worst session since Sept.
5.
The Nasdaq Composite shed
34.54 points, or 0.5%, to
6563.89.
Roughly 36% of the S&P 500
has reported earnings as of late
Wednesday, and 74% of those
1
2
3
4
THE WALL STREET JOURNAL.
firms have beat expectations
compared with the five-year average of 69%, according to FactSet.
Still, relatively weak earnings
from some firms Wednesday led
investors to take profits because
of the market’s almost uninterrupted run this year, said Yousef
Abbasi, global market strategist
at JonesTrading Institutional
Services.
“It’s just a friendly reminder
that the market can go down
sometimes,” he said, noting that
strong earnings from a few
firms propelled the Dow industrials to another record close
Tuesday.
Chipotle Mexican Grill fell
$47.29, or 15%, to $277.01—their
worst day in five years—after
the fast-casual chain missed
forecasts for earnings and sales,
and said it would open fewer locations than previously forecast.
Advanced Micro Devices
tumbled 1.92, or 13%, to 12.33,
after the chip maker forecast
margins to remain flat and revenue to decrease in the current
quarter.
AT&T, Boeing and Dr Pepper Snapple Group also traded
lower after the firms released
results.
Government bond investors
largely focused on the outlook
from central banks.
The yield on the 10-year
Treasury note rose to 2.444%
Wednesday—its highest close
Energy Stocks Lag Behind Oil Prices
BY GEORGI KANTCHEV
AND SARAH KENT
Oil prices are bouncing
back from a three-year slump,
but investors in energy companies seem to have missed
the memo.
International crude prices
have risen in the last 52 weeks
as production cuts by major
suppliers helped shrink the
market’s three-year-old glut.
But energy stocks have barely
gained over the same period—
an unusual divergence for sectors that are normally highly
correlated. Investors have also
put less money in energy equity funds.
On Wednesday, Brent crude,
the international benchmark,
settled at 58.44 a barrel, up
17% over the last 52 weeks.
Shares of global energy companies are up just 3% over the
past 12 months, according to
the MSCI World Energy index.
In the U.S., West Texas Intermediate crude settled at
$52.18 a barrel Wednesday
and has risen 6.1% over the
past 12 months, but energy
stocks in the S&P 500 index
are down nearly 3%.
Exxon Mobil Corp. shares
have fallen more than 4% over
the 52 weeks, while BP PLC’s
stock was broadly flat. Royal
Dutch Shell PLC shares are up
9% but still lag behind the
overall oil price gain for Brent.
Of the major oil companies,
only Chevron Corp. is up more
than the price of a barrel of
Brent, rising more than 18%
over the past 12 months.
Behind the performance of
stocks is a cocktail of factors,
analysts say, including companies’ high debt levels and a
dearth of new investment that
is hitting the bottom lines of
oil-services firms.
However, a more fundamental reason appears to be investors’ broad disillusionment
with a sector that has endured
wild price swings and is
adapting to a new, lower-price
environment.
“Energy equities are now
unloved by investors,” said David Lebovitz, global market
strategist at J.P. Morgan Asset
Management. “So much pain
was felt during the downturn
that people are hesitant to
move into these names.”
Oil prices fell from over
$100 a barrel in mid-2014 to
below $30 a barrel in early
2016, as booming U.S. shale oil
output fueled a global glut of
crude.
Energy stocks fell, too, with
the MSCI World Energy index
down around 50% from peak
to trough.
However, a production-cut
deal between the Organization
of the Petroleum Exporting
Countries and other big suppliers like Russia late in 2016
helped stabilize the market,
and international crude prices
have been steadily rising.
Such a divergence is unusual. Energy shares over the
past decade have had a 75%
correlation with oil prices,
meaning that they go in lockstep three-quarters of the
time, according to Stuart
Allsopp, head of financial markets at BMI Research.
since March—from 2.406%
Tuesday amid speculation about
who the next Federal Reserve
chairman will be. Yields rise as
prices fall.
Treasurys extended losses after data was released showing
demand for long-lasting U.S.
factory goods remained robust
last month.
The European Central Bank
is widely expected to announce
plans to unwind its bond-purchase program at its meeting on
Thursday, keeping some investors on edge.
The program has made European government debt more
scarce and helped drag down
yields globally.
The Stoxx Europe 600 fell
0.6%, with a flurry of corporate
results driving swings in individual stocks.
Japan’s Nikkei Stock Average
fell 0.4% to end a 16-session
winning streak. Hong Kong’s
Hang Seng index rose 0.5% after
China’s new lineup of leaders
was named. Early Thursday, the
Nikkei was up 0.1%, while the
Hong Kong benchmark was
down 0.2%.
Saudis, Russians
Seek to Extend Pact
Top oil producers Saudi
Arabia and Russia want to extend their agreement to limit
petroleum production until the
end of 2018 in their continuing effort to cut the global oil
oversupply, people familiar
with the matter said.
The pact between Saudi
Arabia and Russia—the world’s
two largest crude producers
and exporters—provides momentum for advocates of the
Organization of the Petroleum
Exporting Countries continuing
to withhold oil supplies to
boost crude prices.
OPEC, led by Saudi Arabia,
and a Russia-led group of nonOPEC producers are in the
middle of an accord that cuts
Strong
Factory
Data Lift
Yields
BY AKANE OTANI
Treasury prices slipped
Wednesday, sending the yield
on the 10-year note to its highest level since March, after
data showed the
CREDIT
country’s manuMARKETS facturers on a
strong footing.
The yield on
the 10-year Treasury note settled at 2.444%—the highest
closing level since March 20—
compared with 2.406% Tuesday. Yields rise as bond prices
fall.
Data showed demand for
long-lasting U.S. factory goods
rose again in September, with
new orders for durable goods
rising a seasonally adjusted
2.2% in September from a
month earlier, the Commerce
Department said Wednesday.
Economists surveyed by
The Wall Street Journal had
expected new orders to rise by
0.8%.
The data signaled strength
among manufacturers heading
into the fourth quarter, analysts said, weakening demand
for government bonds, whose
prices tend to rise when investors are less certain about the
economic environment.
“We’ve had a continuation of
decent growth data around the
world,” said James Athey, senior investment manager at
Aberdeen Standard Investments. That has helped keep
Treasurys in a relatively narrow range for much of the year
despite ebbs and flows in investors’ confidence around policy
changes in Washington, he said.
Meanwhile,
speculation
around a potential change in
leadership at the Federal Reserve continued to swing the
markets, some analysts said.
Bond yields closed above
2.4% for the first time in more
than five months Tuesday as
some investors considered the
possibility that President Donald Trump would tap a hawkish candidate for Fed chairman. Mr. Trump has narrowed
the list of candidates to Fed
governor Jerome Powell and
Stanford University economics
professor John Taylor, a person familiar with the matter
told The Wall Street Journal.
Some analysts and economists say a Fed led by Mr.
Taylor, who has criticized the
central bank’s easy-money policies put in place after the financial crisis, may take a more
Speculation around
a potential change
at the Fed continued
to swing markets.
aggressive approach to raising
interest rates—something that
could send bond yields higher.
The yield on the two-year
Treasury note, which tends to
be more sensitive to rate expectations, notched its sixth
advance in eight sessions
Wednesday, settling at 1.608%,
compared with 1.575% Tuesday.
“Markets are clearly set to
deal badly with anyone other
than [Fed Chairwoman Janet]
Yellen if and when the president announces his candidate,”
said Jim Vogel, interest-rates
strategist at FTN Financial, in
a note Wednesday.
global oil output by almost 2%
through March 2018.
OPEC, Russia and other
producers plan to meet Nov.
30 to decide on production,
with a growing number of
group members stating publicly they want to keep their
limits in place through the end
of 2018.
The OPEC-Russia production cuts have helped drain oil
inventories in the U.S. and
elsewhere in the West, but
crude prices remain stuck below the $60-a-barrel target
that Saudi officials say they
want.
On Wednesday, Russian
Energy Minister Alexander Novak said his country would increase production next year
by about 100,000 barrels a
day if the OPEC pact isn’t
continued.
—Summer Said
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.
Thursday, October 26, 2017 | B13
MARKETS
ECB’s Extreme Measures Still Ripple
Central banks first
acted to protect own
economies; now, they
are rolling back efforts
BY BRIAN BLACKSTONE
The European Central Bank
is expected to decide Thursday
whether to scale back its
nearly three-year-old assetpurchase program, a potential
milestone for global central
banking.
Yet smaller central banks in
Europe have been forced in recent years to take their own
extreme measures to protect
their economies. They printed
hundreds of billions of dollars
of their currencies and used
them to buy stocks, bonds and
cash around the world, supporting global asset markets
in the process. They have already started scaling back
some of these efforts.
Switzerland
The ECB’s decision in January 2015 to launch a program
of bond purchases, known as
quantitative easing, or QE, hit
its neighbors hard, none more
than Switzerland. Yet the rich
Alpine country appears to be
one of the earliest beneficiaries of the ECB’s expected tapering of those purchases,
with a weaker franc boosting
exports.
Like other European countries outside the eurozone,
Switzerland is heavily influenced by ECB policies affecting exchange rates, exports
and inflation. Switzerland cut
its deposit rate into negative
territory in December 2014
and unexpectedly abandoned a
longstanding floor on the
euro’s value against the franc
one week before the ECB decision.
A further reduction in the
deposit rate to minus 0.75%
wasn’t enough to keep the
euro from plunging as much as
Email: heard@wsj.com
Switzerland cut its deposit
rate into negative territory
and abandoned a floor on the
euro’s value against the franc
one week before the ECB’s
launch of QE in 2015. Yet the
Swiss National Bank had to
intervene in a big way in
currency markets.
Deposit rates for the ECB and
Swiss National Bank
0%
–0.20
1.30 Swiss franc
800 billion Swiss francs
Euro
1.10
–0.40
ECB
–0.60
200
’15
’16
0.80
’17
2014 ’15
How many Czech korun one
euro buys
15
27
10
Scale inverted to
show rising koruna
’15
’16
0.2%
0
–0.2
–0.4
ECB
–0.6
DCB
–0.8
’15
’16
’17
assets by about 240 billion
Swiss francs ($242 billion)
since 2015 to about $750 billion.
Economic growth weakened
from nearly 2% on an annual
basis in early 2015 to just 0.3%
in the second quarter. But the
franc has weakened against
the euro since the middle of
the year, with the euro on
Wednesday climbing to its
highest level, nearly 1.17
francs, since the franc ceiling
was abandoned.
Czech Republic
The Czech National Bank
took a page from Switzerland’s
’17
CNB
0.20
0.15
0.10
0.05
0
0
2015
’16
ECB
’17
2014
’15
’16
’17
Danish foreign-exchange
reserves
House prices, change from a
year earlier
800 billion Danish kroner
8%
600
6
400
4
200
2
Denmark
Euro area
0
2014
’15
’16
’17
playbook when, faced with a
strong currency amid concerns
over the euro, it set a peg on
the koruna’s value against the
euro in November 2013.
The ECB’s asset-purchase
program put upward pressure
on the Czech peg, which was
set at about 27 korun to the
euro. It rose after that decision, forcing the central bank
to spend vast sums intervening in currency markets to
weaken the koruna.
The Czechs had a particular
problem: trade with Germany,
which the central bank calls
crucial. A weaker euro made
Czech products less price competitive in Germany, threaten-
2015
’16
’17
THE WALL STREET JOURNAL.
ing the country’s trade with
Europe’s biggest economy.
In some ways, its currency
action was riskier than Switzerland’s because the koruna
doesn’t have the same haven
status as the franc. That exposed the Czech central bank
to significant currency losses
if the peg failed. Yet the
Czechs largely weathered the
storm, and while the inflation
rate sank after the ECB
launched QE, it gradually increased to 2.7%, within the
Czech central bank’s target of
2% with a 1-percentage-point
band on each side.
And they were able to exit
their peg earlier this year
HEARD ON THE STREET
FINANCIAL ANALYSIS & COMMENTARY
That customer is set to
become a competitor. Anthem announced it will form
its own pharmacy-benefit
manager once the contract
ends in two years.
Generating growth will be
a challenge, even after ignoring the Anthem loss. The
company is targeting annual
adjusted Ebitda growth of 2%
to 4% a year in its core business through 2020. Total
third-quarter claims were
down 1% from a year ago.
The competitive picture
could darken further. Express
Scripts Chief Executive Tim
Wentworth addressed “recent speculation and rumors
about potential disruption”
in the industry on a conference call Wednesday. While
he reiterated confidence in
the business model, investors
are worried Amazon.com will
soon enter the pharmacy
business. Amazon has made
no announcement on the
topic.
Express Scripts is a pure
stand-alone pharmacy-benefit manager. The company is
now working to diversify itself—Express Scripts announced the acquisition of
medical-benefit manager eviCore for $3.6 billion earlier
this month. That deal is expected to be accretive to
earnings next year after it
closes, but it is unclear by
how much.
Meanwhile, employee
turnover in key roles is an issue. Express Scripts announced that James Havel
would become finance chief
effective Wednesday. He is
the fifth CFO since 2012. The
company also faces a slew of
government inquiries into
topics such as drug pricing
and the opioid crisis, including two new investigations
from state attorneys general
revealed in the company’s
latest quarterly filing with
the Securities and Exchange
Commission.
Winning investors back
won’t be easy. And doing so
will take more than a low
earnings multiple.
—Charley Grant
OVERHEARD
Bitcoin isn’t for the faint
of heart. Neither is technical
analysis.
Still, one analyst believes
marrying the two can help
explain the cryptocurrency’s
surge this year.
J.C. Parets, founder of Eagle Bay Capital and author of
the All Star Charts blog, reckons a pattern called the Fibonacci sequence is the key to
bitcoin’s twists and turns.
“The levels match up so
perfectly that it’s hard for
some to believe that this is
simply normal behavior,”
he wrote on his blog on
Wednesday.
Critics say such studies
enable analysts to distort
charts to tell whatever story
they want.
Bitcoin recently traded
around $5,500 after topping
$6,000 a few days ago.
Should it fall further, Mr. Parets suggests buying.
When it comes to bitcoin,
he wrote in his blog, “the
path of least resistance here
is higher, in my opinion, regardless of what the underlying asset may be.”
India’s Boost to State-Owned Banks Can’t Afford to Fail
India has finally sent its
flailing state-owned banks
the big lifeboat they need.
Investors should jump
aboard cautiously.
The country’s finance
ministry said late Tuesday
that it would inject 2.11 trillion rupees ($32.4 billion) to
recapitalize heavily indebted
public-sector banks over the
next two years. Investors
cheered the aid, which is
equivalent to 1.5% of India’s
gross domestic product.
State Bank of India, the
country’s largest bank, rose
as much as 27% on Wednesday, with the sector as a
whole jumping more than
30%.
The move to shore up the
Denmark
0.25%
$1 = 21.67 korun; 6.30 kroner; 0.99 Swiss franc
Sources: the central banks (rates, reserves, intervention amounts); Thomson Reuters (korun); Tullet Prebon (Swiss francs); Eurostat (house prices)
30% against the franc the day
the floor was lifted, threatening the export-dependent
economy where roughly half of
exports go to the eurozone.
Despite fears of recession
and deflation, Switzerland
largely weathered the hit from
the stronger franc, which has
slowly weakened since early
2015. But this has come at a
high cost for the Swiss National Bank, which had to intervene in currency markets
by selling francs to purchase
foreign stocks and bonds in a
bid to weaken the currency
and keep Swiss exports competitive. That has boosted its
already high level of foreign
’16
Repo rates for the ECB and
the Czech National Bank
0
2014
2015
5
’17
Deposit rates for the ECB and
Danish Central Bank
0
’17
€20 billion
26
2013 ’14
’16
Currency intervention
amounts, by month
25 Czech korun
29
Dollar
SNB
–0.80
600
400
1.00
0.90
28
Denmark’s policy makers
reacted quickly in 2015,
cutting their already
negative deposit rate,
suspending bond issuance
and intervening in the
foreign-exchange market
in order to keep tthe
euro's rate within 2.25%
of 7.46 kroner.
Swiss National Bank's
foreign-currency reserves
1.20
2014
The Czech koruna’s value
rose in the aftermath of
the ECB’s decision, forcing
the Czech National Bank to
spend vast sums intervening
in currency markets.
How many Swiss francs one
dollar and euro buy
Express Scripts Only Looks Cheap
Express Scripts Holding
isn’t as cheap as it may appear.
Granted, at about eight
times forward earnings, the
pharmacy-benefit manager
trades at a significant discount to a pricey market.
Express Scripts unveiled
third-quarter results on
Tuesday evening that gave
shares a boost. Adjusted
earnings of $1.90 a share met
analyst expectations, while
revenue of $24.7 billion
missed. Express Scripts increased the low end of its
full-year profit forecast to
$6.97 a share from $6.95.
The stock closed 4% higher
Wednesday.
But a closer look suggests
the stock is cheap for reasons that are unlikely to
soon change. The company’s
stock won’t be as attractive
when Express Scripts loses
its largest customer, the
health-insurance giant Anthem. Anthem was responsible for 31% of Express
Scripts’ adjusted earnings
before interest, taxes, depreciation and amortization in
the third quarter.
without causing the same disruptions as Switzerland. Czech
policy makers telegraphed the
move well in advance of formally dropping the peg in
April and haven’t intervened
since May.
In August, the Czech central
bank raised interest rates, a
rarity in Europe and beyond in
recent years. Economists at
ING Bank call another rate increase next month a “done
deal.”
How Europe’s Small Central Banks Weathered ECB Bond Buys
banks is commendable, especially its scale. India’s government hasn’t been this
charitable to its banks since
the mid-1990s, when it infused roughly 1.2% of India’s
GDP in fresh capital through
a similar program. The plan
is for New Delhi to finance
the program mostly by issuing recapitalization bonds.
Other details remain sparse.
India’s public-sector banks
do need help. They own
about 70% of the banking
system’s assets and 88% of
its bad assets. The core of
their problem is their
mounting pile of bad debts,
with the nonperforming loan
ratio now over 15%.
The big Indian state
Booster Shot
Share-price performance
Punjab National Bank
Bank of Baroda
State Bank of India
75%
60
45
30
15
0
–15
2017
Source: FactSet
banks’ bad-loan burden has
constrained their ability to
lend more to thriving individuals and businesses. That
has hampered credit growth
across the economy, which
has dropped to record lows.
Still, cleaning out bad
loans remains a big challenge. In recent years, India’s
central bank has periodically
pushed programs to review
banks’ asset quality and deal
with the growing number of
delinquent companies. In
May, the government gave
the central bank more power
to force banks to deal with
souring loans.
The challenge now is that
banks are recognizing more
bad-debt charges, but the
growth in their nonperforming loans isn’t slowing. Nor
are they decisively cutting
off lending to zombie companies. The longer it takes for
banks to seriously grapple
with the bad-loan problem,
the higher their eventual
losses will likely be.
Investor money has
poured into Indian markets
this year on the belief that
Prime Minister Narendra
Modi’s government is the
real deal when it comes to
reform. To date, though, Mr.
Modi has been better at
making blockbuster announcements. Sorting out India’s banks and their soured
loans holds the key to so
much that India’s government needs to achieve, from
buoying growth to improving
infrastructure and reducing
poverty. Investors should
watch closely whether this
particular lifeboat sinks or
floats.
—Anjani Trivedi
The Danish central bank
faced a different dilemma
from that of its Swiss, Czech
and other counterparts because it doesn’t have an inflation mandate. Rather, its sole
responsibility is to keep its
currency, the krone, in a tight
exchange-rate band against
the euro.
Policy makers there reacted
quickly to the ECB’s launch of
QE, slashing their already negative deposit rate to minus
0.2% days before the announcement and reducing it
further in subsequent weeks
to minus 0.75%. Last year, they
nudged it to minus 0.65%.
They also suspended bond
issuance and intervened in the
foreign-exchange market, all
with the aim of keeping the
euro’s rate within 2.25% of
7.46 kroner.
Denmark’s economy has
strengthened since early 2015.
Its central bank expects economic growth of 2.3% this
year, followed by 1.8% next
year and 1.7% in 2019. “This
implies that the Danish economy will be in a boom with
larger pressure on production
capacity and labor resources,”
it said last month.
But it isn’t out of the
woods. Low interest rates
prompted a boom in the housing market—particularly in its
largest city, Copenhagen—as
some home buyers’ mortgage
rates turned negative, meaning they were paid to borrow.
WSJ.com/Heard
Good News
At AMD Can
Hurt Intel
Intel is so big that rival
Advanced Micro Devices
can hardly dent its business,
but good news at AMD can
make investors question
their optimistic outlook for
the chip giant.
That has been the situation since AMD launched a
new server processor chip
called Epyc over the summer.
AMD doesn’t break out sales
for this product line, but
third-quarter sales in its enterprise, embedded and
semicustom segment beat
Wall Street’s estimates by
10%. AMD credited Epyc and
predicted Tuesday that the
server processor would increase to a “sizable portion”
of revenue next year.
That isn’t much compared
with Intel, which will likely
sell more than $18 billion of
chips into its data center
segment this year. The segment containing AMD’s Epyc
business will likely generate
a little more than $2 billion,
and most of that still comes
from the processors the company designs for videogame
consoles. Epyc could have a
sizable impact on AMD next
year by generating $500 million in sales and still just
represent about 2% of Intel’s
competing business.
The problem for Intel is
that it can’t afford to give up
much. Analysts are expecting
the company’s data-center
sales to accelerate next year
following a slowdown this
year.
Third-quarter results
slated for Thursday are expected to show data-center
revenue rising about 6% year
over year compared with a
9% gain in the second quarter.
Intel’s dominant share
means that any gains for
AMD and other rival processors are losses for Intel.
—Dan Gallagher
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B14 | Thursday, October 26, 2017
THE WALL STREET JOURNAL.
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