close

Вход

Забыли?

вход по аккаунту

?

The Wall Street Journal - 31 October 2017

код для вставкиСкачать
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
DJIA 23348.74 g 85.45 0.4%
NASDAQ 6698.96 g 0.03%
STOXX 600 393.91 À 0.1%
10-YR. TREAS. À 15/32 , yield 2.374%
OIL $54.15 À $0.25
GOLD $1,274.10 À $5.90
YEN 113.17
Mueller ramps up;
Trump campaign aide
pleads guilty to lying
about Russia meetings
Business & Finance
BY ARUNA VISWANATHA
AND DEL QUENTIN WILBER
print parent SoftBank
has decided to suspend
efforts to merge the wireless provider with T-Mobile
US, after months of talks. A1
S
Lennar agreed to buy
CalAtlantic for $5.7 billion,
a deal that would create
the country’s largest home
builder by revenue. B1
The U.S. saving rate
dropped to a 10-year low of
3.1% in September, down
from 6.3% two years ago. A2
LyondellBasell has made
a takeover approach to Brazil’s Braskem that could value
the firm at over $10 billion. B6
Akzo and Axalta said they
are in talks about a potential merger of equals of the
coating and paints firms. B6
Clariant investors who
helped scuttle a proposed
deal with Huntsman will
seek three board seats. B6
ALEX BRANDON/ASSOCIATED PRESS
Apple is designing
iPhones and iPads for next
year that would jettison
Qualcomm components. B1
Paul Manafort, President Donald Trump’s former campaign chairman, departed Federal District Court in Washington on Monday.
Samsung delivered record quarterly profit amid
strong demand for its electronic components. B5
Staples is talking with
potential buyers in Asia
about a sale of the retailer’s
operations in China. B6
Mondelez posted rising
third-quarter sales, as Americans ate more snacks. B3
Major stock indexes lost
ground, with the Dow falling
85.45 points to 23348.74. B11
Strayer and Capella are
merging in a deal that creates a nearly $2 billion forprofit education firm. B3
World-Wide
Manafort and a business
associate were accused of
not paying taxes on millions
of dollars in income and an
ex-Trump campaign adviser
pleaded guilty to lying about
his Russia contacts, as Mueller unveiled the first charges
stemming from his electionmeddling probe. A1, A4, A5
Social-media agitators allegedly tied to Russian-linked
Facebook accounts helped
organize and finance events
during and after the U.S.
presidential election. B1, B4
Catalonia’s ex-leader
appeared by surprise in
Belgium, as Madrid sought
charges against him and
other separatists. A6
U.S. Special Forces captured a Libyan man believed to be part of the
2012 Benghazi attack that
killed four Americans. A7
Mueller’s Moves Signal Broad Scope
BY JOE PALAZZOLO
AND JACOB GERSHMAN
With Monday’s unsealing of
a 12-count indictment and a
guilty plea, Special Counsel
Robert Mueller signaled that
his probe into alleged Russian
interference in the 2016 presidential election has taken him
far beyond the campaign, former prosecutors and legal experts said.
A judge blocked Trump
from implementing a ban
on transgender individuals
serving in the military. A3
The FBI is probing a decision by Puerto Rico’s power
authority to award a contract
to a tiny Montana firm. A3
The Taliban said a U.S.
hostage is ill, as the militants
seek to pressure the U.S. to
negotiate his release. A8
Israel blew up an underground tunnel that had infiltrated Israeli territory
from the Gaza Strip. A8
Saudi Arabia said it
would let women attend
sports events in stadiums. A8
Opinion.............. A15-17
Sports....................... A14
Streetwise................. B1
Technology.......... B4-5
U.S. News............. A2-5
Weather................... A12
World News....... A6-8
>
The sweep of the tax and
money-laundering
charges
against former Trump campaign manager Paul Manafort
and his associate Richard
Gates surprised some experts,
who had been following the
investigation of Mr. Manafort
in the media.
“There’s a ton that we don’t
know,” said Paul Fishman, who
was U.S. attorney in New Jersey from 2009 until this year.
Prosecutors alleged Mr.
Manafort laundered $18 million he received for political
consulting work for Ukrainian
politicians to avoid reporting
it to U.S. tax authorities. He
spent more than $12 million in
untaxed income on home improvements, antique rugs, luxury clothing, cars and landscaping from 2008 to 2014,
according to the indictment.
The guilty plea by George
Americans are saving less as the economy and stock market heat
up and as they increase spending on big-ticket items—a sign of
optimism and prosperity but also a signal of potential risk. A2
Personal-saving rate
Papadopoulos, who served as a
foreign-policy adviser to President Donald Trump during the
campaign, may prove to be
more significant than the indictment against Messrs.
Manafort and Gates, revealing
that Mr. Papadopoulos had
been cooperating with federal
authorities for months.
The unsealing of the Papadopoulos case shows that Mr.
Please see INDICT page A5
Special counsel Robert
Mueller on Monday unveiled
the first charges stemming
from his probe into Russia’s
meddling in the 2016 elections,
accusing two former Trump
campaign officials of not paying taxes on millions of dollars
in income and obtaining a
guilty plea from a third who
admitted he lied to federal authorities about contacts with
Russian go-betweens.
The actions represent the
most public moves to date
from Mr. Mueller, a former
Federal Bureau of Investigation director appointed in May
to take over the probe into
Russia’s election interference
and any potential collusion
with President Donald Trump’s
campaign. Taken together, the
moves make it clear that Mr.
Mueller is entering a higherprofile phase of his investigation, and they suggest that
more actions may be coming.
They also fix the spotlight
back on the Russia questions
that have dogged the White
House at a time when Mr.
Trump is attempting to sell a
major tax overhaul that would
give him a needed legislative
victory in advance of midterm
elections next year.
Please see PROBE page A4
Charges Detailed
Indictment describes
Manafort’s lavish life..... A4
Plea agreement reveals
new link to Russia.......... A5
A look at the three
defendants........................ A4
Google’s Washington Clout
Faces a Reckoning
Saving Rate Drops to 10-Year Low
September
3%
12%
Populist backlash and reaction to Russian meddling shake giant
8
BY JOHN D. MCKINNON AND BRODY MULLINS
4
WASHINGTON—Google’s parent company,
Alphabet Inc., made a big bet on Hillary Clinton winning the 2016 presidential election. Employees donated $1.6 million to her campaign,
about 80% more than the amount given by
workers at any other corporation, and Executive Chairman Eric Schmidt helped set up companies to analyze political data for the campaign. Mr. Schmidt even wore a badge labeled
“STAFF” at Mrs. Clinton’s election-night bash.
His support of the losing side didn’t go unnoticed among the victors. As President-elect
Donald Trump was preparing for a meeting
with tech executives at Trump Tower before
his inauguration, he asked strategist Stephen
Bannon whether Mr. Schmidt was “the guy
that tried to help Hillary win the election,” according to someone who heard the conversation. “Yes,” said Mr. Bannon. “Yes, he is.”
Google, one of the most powerful players in
0
2000
’05
’10
Household net worth as a percentage of GDP
’15
’17
2nd quarter
500%
600%
500
400
300
2000
’05
’10
’15
’17
Note: personal savings rate and GDP are seasonally adjusted
Sources: Commerce Department (GDP, personal savings); Federal Reserve (net worth)
Kenya’s president was
officially declared the winner of a repeat election. A7
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
EURO $1.1651
Manafort Charged in Russia Probe
What’s
News
CONTENTS
Business News.. B3,6
Capital Journal...... A5
Crossword.............. A12
Heard on Street.. B11
Life & Arts....... A11-13
Markets............. B11-12
HHHH $4.00
WSJ.com
TUESDAY, OCTOBER 31, 2017 ~ VOL. CCLXX NO. 103
* * * * *
Sprint to
Halt Talks
On T-Mobile
Merger
For the second time in
three years, Sprint Corp. is
preparing to leave T-Mobile
US Inc. at the altar after
months of negotiations to
bring together the two U.S.
wireless providers.
By Ryan Knutson,,
Drew FitzGerald
and Dana Mattioli
The two sides have been exploring a deal that would combine the No. 3 and No. 4 U.S.
carriers by subscribers, seeking to create a player big
enough to challenge the market leaders in a rapidly changing telecommunications and
media landscape.
But directors at Sprint’s
parent company, SoftBank
Group Corp., met in Tokyo last
week and decided to suspend
the merger efforts, according
Please see SPRINT page A8
No Bones About It: Animal
Skeletons Are Hot for Halloween
i
i
Russia accounts organized rallies on Facebook... B1
126 million people saw Russian content............ B4
Salesforce.
#1 CRM.
i
Pet lovers turn furry familiars into a bigtime decoration; a 6-foot horse for $199
Washington in recent years, is now facing the
consequences of its lost political clout—and is
moving mountains to regain it. During the
Obama years, Google held sway with both parties in Congress and members of the administration. Mr. Schmidt often met with President
Barack Obama at the White House through advisory boards and other events. The company
defeated an antitrust probe by U.S. regulators
and secured favorable rules on net neutrality,
online liability and copyright issues.
Today, the search-and-advertising giant has
come under attack from Republicans on all
those fronts, as well as a new challenge over
consumer privacy. Democrats, for their part,
are rethinking their attitude toward regulating
the company amid allegations that Russia used
Google and other internet platforms in an atPlease see GOOGLE page A10
Salesforce ranked #1 for CRM based on IDC 2016
Market Share Revenue Worldwide.
BY ELLEN BYRON
dor, will be accompanied by a
mélange of rats and mice, an
Julia Sandvoss has used all owl, a snake, a cat, a crow and a
the standard forms of scary dé- pony.
Humans looking to take their
cor in the haunted house she
creates each year for Halloween: spooky game to the next level
have come to a coneyeballs, cobwebs,
sensus. Fake skeletombstones, spiders
tons of animals,
and the odd werethese humans say,
wolf. This year she’s
bringing in more aniare the way to go.
mals.
Among the many
Not live animals,
categories of Hallowmind you. Just their
een decorations at
bones.
Home Depot Inc.,
“We’re dog lovers,
skeletons of all types
so they seemed like
are the No. 1 sellers.
the perfect fit for our
“They
overtook
An ex-dog
family,” Ms. Sandwitches a year ago,”
voss says, referring
says Kelie Charles,
to six canine skeletons she’s ac- the retailer’s holiday merchant.
quired to decorate the first floor
Home Depot’s inventory inPlease see BONES page A10
of her home in St. Louis. Those
sets of plastic bones, including
ones that resemble a Chihuahua, Scared towns rein in trick-ortreating.......................................... A3
a French bulldog and a Labra-
18.1%
9.4%
7.2%
2012
2013
2014
2015
2016
Source: IDC Worldwide Semiannual Software Tracker, May 2017
salesforce.com
© 2017 salesforce.com, inc. All rights reserved. Salesforce.com is a registered
trademark of salesforce.com, inc., as are other names and marks.
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.
A2 | Tuesday, October 31, 2017
U.S. NEWS
Trump’s Deregulatory Juggernaut Is Rolling
CAPITAL JOURNAL
By Gerald F. Seib
Why, you might ask, are
the financial markets and the
business community so happy
with the
Trump administration?
After all, a
Trump presidency carries
the risk of a
trade war, which alarms investors and big-business leaders; in fact, the business community is actively working
against the administration’s
threat to deep-six the North
American Free Trade Agreement.
The GOP tax-cut plan the
financial sector has been
counting on is only being unveiled this week, and the administration has done nothing
so far to launch the promised
rebuilding of infrastructure
that business leaders crave.
To some extent, then, the
explanation for the love affair
lies elsewhere, in something
many in Washington either
find boring or overlook entirely: deregulation.
While the Republican machine that emerged from the
2016 election may be sputtering on other fronts, it is proving to be a juggernaut on deregulation. And as a priority
for the business community,
deregulation ranks right up
there with tax reform.
A
new set of figures
from the U.S. Chamber
of Commerce tells the
tale of how far and fast the
president, his administration
and the Republican-controlled
Congress have moved.
The business group has
been keeping a tally of deregulatory actions this year, and
its scorecard lists 29 executive actions—executive orders
by Mr. Trump or directives
from his White House—to reduce regulatory requirements.
In response, executive-branch
agencies have issued 100 additional directives that either
knock down regulations or
begin a process to eliminate
or shrink them.
The chamber’s count also
lists almost 50 pieces of legislation that have been introduced or begun moving
through Congress. And that
count doesn’t include perhaps
the most aggressive step the
Republican Congress has
taken: It has pioneered the
use of a little-known 1996
law, the Congressional Review
Act, that allows lawmakers to
repeal executive-branch regulations within 60 days after
they are finalized.
Using that law, Congress
has passed, and Mr. Trump
has signed, legislation overturning 14 regulations promulgated by the Obama administration in its final days.
Then, just last week, Congress passed legislation repealing a rule put in place
this year by the Consumer Financial Protection Bureau—
created under Barack Obama’s
administration—that would
have made it easier for consumers to sue banks in finan-
cial disputes. The legislation,
one of the most significant
wins for the financial industry in years, passed the Senate 51-50 when Vice President
Mike Pence broke a tie.
None of this is as flashy as
a controversy over a 6:30
a.m. tweet from the president
attacking his enemies. But the
deregulatory push may be the
Despite infrastructure
and tax-cut delays,
here’s why business
likes the president.
most consequential initiative
the Trump administration has
taken, perhaps rivaled only by
the appointment of dozens of
judges, who serve for life.
Certainly the business and
financial worlds are noticing
the deregulatory drive. The
economy grew at a 3% rate in
the third quarter, the government reported Friday, fueled
in part by business spending
on new equipment, which
Wind and Rain Whip Northeast
rose at an annual 8.6% rate.
That spending is one sign
business leaders like the new
environment.
Meanwhile, the stock market is hitting record highs on
a regular basis.
Democrats, on the other
hand, aren’t pleased. They
have begun complaining that
the deregulatory rush is both
dangerous to the public and
the result of work by Trump
administration officials with
deep conflicts of interest,
arising from their careers in
affected industries or their
personal financial interest in
those industries.
This month, a group of
House Democrats introduced
legislation that would require
agencies to report any conflicts of interest that would
arise for the president or senior members of his administration when regulatory rules
are being changed. President
Trump is “undermining regulations in order to benefit
himself, his family, and his
close friends,” said Rep. David
Cicilline, a Rhode Island Democrat and one of the bill’s
sponsors.
PETER PEREIRA/STANDARD TIMES/ASSOCIATED PRESS
BEACHED: High winds sent sailboats crashing onto the Dartmouth, Mass., beach. More than 1.5 million homes and businesses lost
power and hundreds of schools in New England were closed. In Maine, Gov. Paul LePage declared a state of emergency.
U.S. WATCH
FORT BRAGG
EPA
LABOR DEPARTMENT
Environmentalists
Fault Pruitt Order
U.S. Appeals a Ruling Death Toll Rises to
In Overtime Case
43 as Teen Girl Dies
Bergdahl Apologizes
To Wounded Troops
Lawyers are digging in for
longer and more expensive
fights with the U.S. Environmental Protection Agency.
The new posture follows an
order by EPA Administrator
Scott Pruitt that environmental
groups say will complicate settlements when plaintiff lawyers
sue the agency for habitually
failing to issue regulations on
schedule. The directive, released
this month, requires the agency
to seek the participation of affected industries and states in
settlement negotiations. Environmental groups say the policy
will drag out what should be
easily negotiated deals.
—Joe Palazzolo
The Trump administration on
Monday appealed a federal
judge’s ruling that struck down
an Obama-era overtime-pay rule,
a move designed to preserve the
Labor Department’s authority to
reshape the rule.
By filing the appeal, the department seeks to maintain Secretary Alexander Acosta’s ability
to establish overtime regulations, a Labor Department official said Friday. The appeal
shouldn’t be viewed as the
Trump administration endorsing
the threshold set in regulations
issued last year, according to the
official.
—Eric Morath
and Josh Mitchell
In an unexpected and emotional statement, Army Sgt. Bowe
Bergdahl apologized in court to all
of the military personnel who
were wounded searching for him
and described the daily nightmares and flashbacks to his five
years in captivity of Taliban allies
he still endures.
Sgt. Bergdahl was the first
defense witness. A judge will decide his punishment for endangering comrades by walking off
his post in Afghanistan in 2009.
His apology came after the
judge ruled that President Donald Trump’s criticism won’t prevent the soldier from receiving a
fair sentence.
—Associated Press
CALIFORNIA WILDFIRES
A teenage girl died in a hospital three weeks after she was
severely burned in a fire that
tore through Mendocino County,
Calif., raising the number of
those killed in the state’s wildfires this month to 43.
Kressa Shepherd, 17 years
old, died Sunday night at a Sacramento hospital, her aunt,
Mindi Ramos, said Monday.
Her brother, Kai, 14, one of
the youngest fire victims, died
as her family tried to outrun the
flames at their Redwood Valley
home. Her parents, Jon and Sara
Shepherd, remain hospitalized
and have gone through several
grafting surgeries.
—Associated Press
CORRECTIONS AMPLIFICATIONS
image of an untitled Basquiat
painting that belongs to the
Broad Museum incorrectly accompanied the article. Readers
can see an image of “Hannibal”
at WSJ.com/Corrections.
Fifty-nine countries and regions participated in the WorldSkills 2017 competition in Abu
Dhabi; the 2015 competition was
held in São Paulo. A Page One
article Monday about the world
championship of vocational
skills incorrectly said that 58
countries participated and that
Rio de Janeiro hosted in 2015.
Bharat
Sharatchandra
Bhise earned a certificate from
a 15-month business course at
New York University. In some
S
ome of the administration’s steps are smallbore—setting up a team
to review federal and state
rules to ensure that efforts to
protect the sage grouse are
complementary, for example.
But others, particularly those
launched by the Environmental Protection Agency, are big
and broadly significant, including moves already taken
to delay and potentially rescind Obama-era Clean Air Act
and Clean Water Act rules.
Some of the deregulatory
actions will unfold slowly:
Just as legal requirements for
public comment and review
periods make issuing regulations a slow process, so too
do they mean unwinding regulations can take time and, in
some cases, invite court challenges.
Ultimately, though, there is
little Democrats can do to
stop the drive—a clear sign
that elections do have consequences.
Americans Save
Less, Spend More
BY SARAH CHANEY
AND HARRIET TORRY
Edemar Cid Ferreira, the
former president of Banco Santos, bought Jean-Michel Basquiat’s 1982 painting “Hannibal,” a skull against an orange
background, for an undisclosed
sum in 2003. After Mr. Ferreira
was convicted of money laundering in Brazil, the estate of
Banco Santos auctioned “Hannibal” for $13 million to an anonymous buyer at Sotheby’s. A
Life & Arts article Monday
about Mr. Ferreira’s art collection incorrectly said that the
painting was created in 1981
and that Mr. Ferreira bought it
in the late 1990s for less than
$100,000. The article also incorrectly said the bank’s estate
sold “Hannibal” to Japanese billionaire Yusaku Maezawa. An
Such legislation isn’t going
anywhere in a Republicancontrolled Congress, of
course.
editions Monday, a Money & Investing article about Mr. Bhise
and HNA Group Co. incorrectly
characterized the program as a
three-month course.
In California, people who
buy health insurance on the
state’s exchange must pay a
minimum $1 premium. A U.S.
News article Saturday about the
Affordable Care Act incorrectly
said some people in the state are
eligible for zero-premium plans.
The metallic dome of the
Louvre Abu Dhabi weighs 7,500
metric tons (8,250 short tons).
An Off Duty article Saturday
about the museum incorrectly
said the dome weighed 7,500
pounds.
In the recipe for zucchini olive oil cake, 1½ cups of all-purpose flour should be mixed with
the whole-wheat pastry flour
and other dry ingredients in
step No. 3. The Oct. 21 Off Duty
recipe didn’t make clear when
the all-purpose flour should be
added.
The valuation as a multiple
of annualized revenue for office-leasing company WeWork
Cos. is 20.2 times, compared
with 0.9 times for competitor
IWG PLC. Valuation per square
foot for WeWork is $2,020 and
$52 for IWG. A graphic with a
Page One article Oct. 20 about
WeWork incorrectly swapped
the labels for the two measurements of valuation.
Readers can alert The Wall Street Journal to any errors in news articles by emailing wsjcontact@wsj.com or by calling 888-410-2667.
Americans are saving less as
the economy and stock market
heat up and they boost spending on big-ticket items like cars
and refrigerators. The trend
concerns some economists.
The U.S. saving rate fell to
a 10-year low of 3.1% in September, down from a recent
peak of 6.3% in October 2015,
the Commerce Department
said Monday.
Low unemployment and rising stock prices are likely contributing to household optimism, making people willing
to save less and spend more in
anticipation of continued job
and wealth gains.
The saving rate has now
sat below 4% for seven
straight months. It likewise
hovered at low rates in the
late 1990s, when stock prices
soared and the jobless rate
fell below 5%, and again in
the mid-2000s, when home
prices soared and the unemployment rate again dropped.
“It does seem to be consistent with high household net
wealth,” said Paul Ashworth of
Capital Economics. Net worth
of U.S. households—the value
of their assets minus their
debts—rose by $1.7 trillion in
the second quarter of 2017 to
$96.2 trillion, according to the
Federal Reserve.
Though a sign of household
optimism and prosperity, the
savings drop and wealth gains
are also a signal of risk potentially building in the economy
and financial system. The declines in the savings rate in
the 1990s and 2000s were associated with financial bubbles that burst.
“Consumer incomes are not
rising fast enough to sustain
solid growth and that is a
warning sign of future trouble,”
said Joel L. Naroff, chief economist at Naroff Economic Advisors Inc., in a note to clients.
Still, periods of low saving
can be protracted. The saving
rate held below 4% for 40
straight months between Jan-
uary 2005 and April 2008.
The Commerce Department
report showed that household
spending on durable goods rose
3.5% in September, adjusted for
inflation, and at a robust 8.3%
inflation-adjusted annual rate
for the third quarter, after 7.6%
annualized gain in the previous
three-month period. That is far
faster than the economy’s underlying 2% growth.
Sonnie Strolberg, 71, recently bought a 1,200-squarefoot home in Twin Falls, Idaho.
She and her husband have
spent about $20,000 on renovations, including new kitchen appliances. “We feel good about
the economy, but we know
what can happen,” she said.
Soaring sentiment wasn’t
the only factor driving spending. Hurricanes Harvey and
Irma, which clobbered parts of
Texas and Florida and propelled rebuilding efforts, were
a factor, though one that the
Commerce Department said it
couldn’t precisely quantify.
“There was lots of damage
done to lots of homes, so some
of the personal expenditure
has to go to reconstruction as
well,” said Satyam Panday, senior U.S. economist at S&P
Global Ratings.
While spending marched
ahead, real disposable incomes—a measure of how
much households make after
taxes and inflation—were unchanged in September. One
reason: Hiring dropped, also
associated with the storms.
The saving rate might pick
up in the months ahead as the
wide-ranging impact of the
storms recedes from the income and spending data.
The Federal Reserve’s preferred measure of inflation, the
price index for personal-consumption expenditures, rose
0.4% in September from the
prior month, due in part to a
jump in gasoline prices also associated with weather. Excluding the often-volatile categories
of food and energy, inflation
remained especially low: Socalled core prices were up only
0.1% in September over August.
THE WALL STREET JOURNAL
(USPS 664-880) (Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241)
Editorial and publication headquarters: 1211 Avenue of the Americas,
New York, N.Y. 10036
Published daily except Sundays and general legal holidays.
Periodicals postage paid at New York, N.Y., and other mailing offices.
Postmaster: Send address changes to The Wall Street Journal,
200 Burnett Rd., Chicopee, MA 01020.
All Advertising published in The Wall Street Journal is subject to the
applicable rate card, copies of which are available from the Advertising
Services Department, Dow Jones & Co. Inc., 1211 Avenue of the Americas,
New York, N.Y. 10036. The Journal reserves the right not to accept an
advertiser’s order. Only publication of an advertisement shall constitute final
acceptance of the advertiser’s order.
Letters to the Editor: Fax: 212-416-2891; email: wsj.ltrs@wsj.com
NEED ASSISTANCE WITH YOUR SUBSCRIPTION?
By web: customercenter.wsj.com; By email: wsjsupport@wsj.com
By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat
REPRINTS & LICENSING
By email: customreprints@dowjones.com; By phone: 1-800-843-0008
GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 31, 2017 | A3
* * * * *
U.S. NEWS
FBI Eyes Puerto Rico Power-Grid Deal
Investigation concerns
$300 million contract
to tiny Montana firm
for repairs on the island
BY BRENT KENDALL
AND GORDON LUBOLD
WASHINGTON—A federal
judge blocked President Donald Trump from implementing
a ban on transgender individuals from serving in the military.
U.S. District Judge Colleen
Kollar-Kotelly ruled preliminarily on Monday that Mr.
Trump’s ban, announced on
Twitter in July and formalized
in a presidential memorandum
in August, is likely unconstitutional. She issued an injunction that bars its implementation for now while legal
proceedings continue.
The 76-page decision came
in response to a lawsuit
brought by current and aspiring members of the armed services. Judge Kollar-Kotelly, a
Bill Clinton appointee, said the
policy likely violated the Constitution’s guarantee of due
process under the law.
The judge said courts owe
deference to the president in
the military context, but that
judges still have authority to
decide if service members’ basic rights have been violated.
She said several factors supported the challengers’ claims
that the ban wasn’t based on
legitimate concerns about military effectiveness but instead
was driven by a desire to express disapproval of transgender people.
Judge Kollar-Kotelly said
the Trump administration’s
stated reasons for the ban
“appear to be hypothetical and
extremely overbroad.”
“As far as the court is aware
at this preliminary stage, all of
the reasons proffered by the
president for excluding transgender individuals from the
military in this case were not
merely unsupported, but were
actually contradicted by the
studies, conclusions and judgment of the military itself,” the
judge wrote.
The White House referred
questions to the Justice Department, which said: “We disagree with the court’s ruling
and are currently evaluating
the next steps. Plaintiffs’ lawsuit challenging military service requirements is premature for many reasons,
including that the Defense Department is actively reviewing
such service requirements, as
the president ordered.” The
Pentagon didn’t respond to a
request to comment.
and if there is any wrongdoing, the persons responsible
should be prosecuted to the
full extent of the law.”
A spokesman for the FBI
couldn’t be reached.
The House Committee on
Natural Resources said Monday
it would hold hearings over the
next three weeks on the storm
recovery and on transparency
in the reconstruction process.
Ricardo Ramos, executive
director of Prepa, had defended the Whitefish pick and
said the contracting process
was done according to the
utility’s regulations for handling emergency situations.
Whitefish, a startup firm
based in the remote hometown
of Interior Secretary Ryan
Zinke, had roughly 350 subcontracted workers and 2,500
tons of heavy equipment on
the ground for restoring elec-
trical lines destroyed in the
Category 4 hurricane. But the
firm’s small size and limited
track record, as well as terms
of the contract, ignited concerns around Puerto Rico’s
management of the flow of
federal disaster relief dollars
to the island.
Mr. Zinke, an acquaintance
of Whitefish Chief Executive
Andy Techmanski, issued a
statement last week denying he
had any involvement in the
company securing the deal.
On Friday, FEMA said it had
questions about how Whitefish’s prices were negotiated
and was working with Prepa
and its legal advisers to determine how the contract was
procured as well as how the
utility determined the prices.
The
controversy
now
threatens to cost Puerto Rico’s
governor control of the power
utility, which this summer entered a court-supervised bankruptcy proceeding. He is vying
for control of Prepa with the
federal oversight board installed by Congress to supervise Puerto Rico’s economic
planning. The oversight board
took steps last week to install
a retired Air Force colonel as a
“chief transformation officer”
to take over Prepa’s operations.
Scared Straight: Towns Rein In Halloween
BY VALERIE BAUERLEIN
HOLLY SPRINGS, N.C.—How
old is too old to trick-or-treat?
This suburb of Raleigh has an
answer, and it is 13 years old.
The town council passed a
resolution this month asking
its residents to reserve trickor-treating for those 12 and
under, to go door-to-door for
candy only in their own neighborhood, and to turn off all
porch lights by 9 p.m.
Officials say the rules are
meant to protect the public.
Halloween fans say they’re
Grinch-y.
Holly Springs Mayor Dick
Sears said he has been flooded
by phone calls, emails and social-media comments objecting to the rules. The town’s account administrator chastised
one critic who urged the egging of town leaders’ homes,
saying, “A call to violence,
whether serious or facetious,
is inappropriate.”
Mr. Sears defended the res-
Some towns are putting age limits or curfews on trick-or-treating
in the name of safety, prompting a social-media backlash.
olution as a way to maintain
safety in the community of
33,000. The guidelines have
been around for several years,
but this year was the first
time they caught notice on social media. Besides, as guidelines they aren’t enforceable.
“I’m not sure why it’s aroused
such interest,” he said.
Sharon Myers, a retired
nurse in Holly Springs who
plans to dress as a witch on
Tuesday, has an explanation:
“Halloween brings the little
kid out in people.” She said
she would hand out Snickers
and Butterfingers to all-comers, regardless of age.
The nearby town of Fuquay-
Insurers Leave ACA Markets;
Some Premiums Will Jump
BY STEPHANIE ARMOUR
Dozens of insurers are
leaving the Affordable Care
Act’s federal insurance exchange, and consumers who
don’t get premium help will
see some rates for popular
plans jump by more than 30%
next year, according to a
Trump administration report released Monday.
The data, which come just
before Wednesday’s launch of
open enrollment under the
ACA, is likely to add to debate
over whether the Obama-era
law is failing, or whether it is
being sabotaged by congressional Republicans and President Donald Trump.
Millions of people are expected to sign up for private
health coverage during the
sign-up season, at a time
when the president and many
congressional Republicans
are pledging to repeal the
health law.
The number of insurers
participating on the federal
exchange, known as HealthCare.gov, will drop to 132 in
2018 from 167 this year, according to the Department of
Health and Human Services
analysis. As a result, about
30% of consumers will have
only one insurer to pick from,
up from 20% this year.
Premiums will climb, but
not everyone will pay more.
Most consumers are eligible
for federal tax credits that
help with premiums. The
value of a credit increases
with the cost of premiums for
one of the exchange’s most
popular plans.
That means that, despite
the rise in rates, many people
who get the credits will actually pay less, depending on the
type of plan they select, the
report says.
Democrats and
Republicans battle
over the blame for
weakening markets.
One implication is that the
federal government will spend
more, because the value of tax
credits will rise, health analysts say.
The roughly seven million
people who buy private insurance on and off the exchanges
but aren’t eligible for tax credits will see sharp increases.
The average monthly premium for one of the most popular, middle-price plans on the
exchange—a key metric for
premiums around the country—will increase by 37% for a
27-year-old consumer across
states that rely on Washington
to run their exchanges, according to the HHS report.
“Most consumers receive
tax credits, so they’re sheltered,” said Matthew Fiedler,
an economic studies fellow at
the Brookings Institution, a research group. “But it’s significant for the federal government
and
unsubsidized
consumers.”
The report comes as Democrats and Republicans engage
in a pitched battle over who
should shoulder blame for the
weakening markets.
Mr. Trump on Sunday tweeted, “As usual, the
ObamaCare premiums will be
up (the Dems own it), but we
will Repeal and Replace and
have great Healthcare soon after Tax Cuts!”
Democrats and some health
analysts say insurers have left
the exchanges because Republicans have created uncertainty over the future of the
health law with their promises
to repeal it.
They also say Mr. Trump’s
decision this month to end
subsidy payments to insurers
is responsible for the premium
increases.
The payments offset insurers’ costs of providing out-ofpocket financial help to some
low-income consumers.
Varina has taken the opposite
stance and is encouraging all
comers for its candy giveaway.
“Fuquay-Varina does not regulate Halloween,” said town Police Chief Laura Fahnestock.
Holly Springs is hardly
alone in seeking to impose order on the rituals of Halloween in the name of safety.
In Middletown, N.Y., the
mayor is enforcing a 9 p.m.
curfew from Oct. 27 to Nov. 1,
with no one under 18 allowed
out without parents or a written permission slip. Nevada’s
Clark County is running an
“Inside by 9” public-service
announcement with a smiling
witch telling children, “There’s
no place like home for trickor-treaters.”
Some cities have had restrictions in place for years,
with few complaints. Belleville, Ill., passed a set of limits
in 2008 after older residents
raised concerns about tall,
masked kids knocking on their
doors at 10 p.m. or later. Now
police send teenagers home if
they find them out late or
dressed up when they should
know better, Mayor Mark Eckert said.
“When I was a kid, we
didn’t need the city to tell us,”
Mr. Eckert said. “We had parents who said, ‘Hey, you’re
done. You’re almost 6 feet tall,
you’re in junior high, you can
stay home and help your
mother.’”
But times have changed,
and local leaders say they
must take action.
“We shouldn’t have to legislate things like this, but sometimes the government needs
to step in,” he said.
Back in Holly Springs, Eric
Granger, a 32-year-old father
of toddler twin boys, said he
trick-or-treated until he was
about 15 years old. He said he
would give candy to every kid
however old, even though his
personal philosophy is that
“once you can drive, you
shouldn’t trick-or-treat.”
© Verdura. All rights reserved.
Judge Blocks
President’s
Transgender
Military Ban
Whitefish Energy workers stood on towers this month in Barceloneta, Puerto Rico, working to restore power lines damaged last month by Hurricane Maria.
SPENCER PLATT/GETTY IMAGES
The Federal Bureau of Investigation is investigating a decision by Puerto Rico’s power authority to award a $300 million
contract to a tiny Montana energy firm to rebuild electrical
infrastructure damaged in Hurricane Maria, according to people familiar with the matter.
Agents from the FBI’s San
Juan field office are looking
into circumstances surrounding
the deal that the public power
monopoly known as Prepa
signed with Whitefish Energy
Holdings LLC, according to the
people familiar with the matter.
Puerto Rico Gov. Ricardo
Rosselló canceled the contract
Sunday, saying it had become
a distraction from the U.S. territory’s efforts to restore the
devastated grid. Only 30% of
the island’s power customers
have had electricity restored.
The Federal Emergency
Management Agency, multiple
congressional committees and
local auditors also have raised
concerns.
“Whitefish is committed to
full cooperation with any inquiry or investigation,” a company spokesman said Monday.
“The procurement of the
PREPA contract was at all
times fully appropriate.”
A spokeswoman for Gov.
Rosselló said he “welcomes
any investigation by the federal authorities and he has
been clear: there should be an
investigation on this matter,
RAMON ESPINOSA/ASSOCIATED PRESS
BY ANDREW SCURRIA
SOUT H SEA PEA R L DROP EA RCLI PS
Pearl
P
e a r l , di
d i amond
a m o n d aand
n d 18k
1 8 k gol
g o l d , $$13,50
13 ,5 0 0
74 5 F I F T H AV E N U E , 12 T H F LO O R
212 .758 . 33 8 8 • V E R D U R A .CO M
Original
O
r iigg i n a l ggouache
o u a ch e bbyy Duke
D uke F
Fulco
u l c o di
d i Verdura
Vee rd u r a
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
A4 | Tuesday, October 31, 2017
P
W
L
C
10
11
12
H
T
G
K
B
F
A
M
1
2
3
4
5
6
7
8
9
O
I
X
X
THE WALL STREET JOURNAL.
****
THE MUELLER INVESTIGATION
Alleged Wire Payments
Paul Manafort allegedly arranged wire payments from foreign entities
to several different kinds of businesses from 2008 to 2014 so that he
could avoid paying taxes on the income, according to the indictment.
Total payments to vendors of $500,000 or more:
Home improvement company
$5,434,793
1,319,281
Antique rug store
934,350
Men's clothing store
849,215
Landscaper
655,500
Antique dealer
623,910
Clothing store
520,440
Investment company
500,000
Source: Department of Justice
THE WALL STREET JOURNAL.
Manafort
Led ‘Lavish’
Lifestyle
BY BYRON TAU
WASHINGTON—Former
Trump campaign manager Paul
Manafort was living a “lavish”
lifestyle financed by a network
of foreign corporate entities and
accounts designed to help him
avoid paying taxes on income he
earned while lobbying for the
pro-Russian government of
Ukraine between 2006 and
2016, according to a 31-page indictment made public Monday.
Wire transfers by Mr.
Manafort included nearly $1
million to an antique rug store
in Alexandria, Va., out of accounts in Cyprus, about
$850,000 on men’s clothing,
more than $650,000 in landscaping and about $275,000 on
four Range Rovers and a Mercedes-Benz, the indictment said.
Other accounts or corporations were used to buy property—including a condominium
in the Soho neighborhood of
Manhattan and a $3 million
brownstone in Brooklyn that he
bought using wire transfers
from foreign entities. The charging document alleges that Mr.
Manafort then generated fresh
money by mortgaging some of
those properties or using them
as rentals, the record shows.
Mr. Manafort financed his
spending through foreign accounts based in Cyprus, the Caribbean nation of St. Vincent
and the Grenadines and the
U.K., and prosecutors say he and
his former business partner,
Richard Gates, gave false information to their accountants and
attorneys in order to try to conceal the money.
A veteran Washington political operative who helped guide
President Donald Trump to an
upset win in the Republican primaries, Mr. Manafort was indicted on Monday in what prosecutors allege was a scheme to
conceal a major influence-peddling and lobbying operation
performed on behalf of the government of Ukraine.
Mr. Manafort, 68, and Mr.
Gates, 45, were arraigned in U.S.
District Court on Monday, pleading not guilty to a dozen charges
stemming from lobbying they
performed between 2006 and
2015 for the ruling party of
Ukraine as well as subsequent
attempts to allegedly hide the
payments from that work. Those
charges include two counts of
conspiracy to avoid income
taxes and launder money, a
number of lobbying and banking
violations, and allegations of
making false and misleading
statements to investigators.
The White House distanced
itself from Mr. Manafort and
said news of the indictments
would have no effect on the
president’s ability to govern.
Mr. Manafort’s attorney,
BILL HENNESSEY/REUTERS
Home entertainment company
Former Trump campaign manager Paul Manafort, left, and his former business partner Richard Gates during a hearing on Monday.
Moving Money
Prosecutors allege Paul Manafort illegally avoided taxes on income that he moved from overseas
accounts to the U.S. through purchases of personal items and real estate.
3 From 2008 to 2014, Manafort allegedly wired over
$12 million from those overseas accounts to U.S.-based
vendors for items such as clothing, cars, antique rugs
and home improvements. He also allegedly wired over
$6 million to buy real estate in New York and Virginia.
Calif.
U.S.
1 Starting in 2006, Paul
Manafort and his business
partner Richard Gates earned
hefty fees from their work for
a pro-Russia party in Ukraine.
N.Y.
Cyprus
Va.
S.C.
Fla.
St. Vincent and
the Grenadines
Kevin Downing, issued a statement Monday saying his client’s
work in Ukraine was aimed at
building stronger ties between
it and the U.S. He said the claim
that “maintaining offshore accounts to bring all your funds
into the United States, as a
scheme to conceal from the
United States government, is ridiculous.”
Through a spokesman, Mr.
Gates said he “welcomes the opportunity to confront these
charges in court” and asked for
2 Prosecuters allege
Manafort and Gates
set up several offshore
entities, primarily in
Cyprus and St. Vincent
and the Grenadines.
THE WALL STREET JOURNAL.
Source: Justice Department
privacy. Both men were senior
officials on Mr. Trump’s campaign, with Mr. Manafort serving on the campaign between
March and August of 2016, taking over as campaign manager
in June. He has said he wasn’t
paid for his work. Federal Election Commission records don’t
show any campaign payments
to Mr. Manafort or any of his
known entities.
Mr. Gates joined the campaign around the same time as
Mr. Manafort, helping run Re-
PROBE
Continued from Page One
Former Trump campaign
manager Paul Manafort was
taken into custody on charges
that he laundered more than
$18 million between 2006 and
2016 to pay for what prosecutors described as a “lavish lifestyle”—including rugs, landscaping, cars and clothing—
without reporting the income
to the Internal Revenue Service. That income was from
work he did for a pro-Russia
party in Ukraine headed by the
country’s former president,
Viktor Yanukovych.
Mr. Manafort and business
associate Richard Gates were
also charged with conspiring
against the U.S. and failing for
years to register their lobbying
activities on behalf of the
Ukrainian government. Mr.
Manafort, a veteran political
operative, has done extensive
work overseas.
Separately, according to
court documents unsealed on
Monday, Trump campaign foreign-policy adviser George Papadopoulos has pleaded guilty
to lying to the FBI about his
contacts with people connected to Russian officials.
Mr. Papadopoulos admitted
he spoke to a professor during
the campaign who told him the
Russians possessed “dirt” on
Democratic presidential candidate Hillary Clinton in the
form of “thousands of emails,”
according to court documents.
He earlier had told the FBI
those contacts only occurred
before he joined the campaign.
Mr. Papadopoulos also acknowledged he made repeated
efforts to arrange a meeting
between the Trump campaign
and Russian government officials, including through a
woman he believed was Russian President Vladimir Putin’s
niece, the documents said.
The Trump administration
has faced questions about the
Kremlin’s alleged meddling in
Ukraine
Paul Manafort
Richard Gates
George
Papadopoulos
A longtime GOP lobbyist
and consultant, Paul Manafort
joined Donald Trump’s presidential campaign in March 2016 to
fend off a possible delegate revolt against the New York businessman from supporters of
Sen. Ted Cruz (R., Texas).
He was soon promoted to
campaign chairman and chief
strategist. Mr. Manafort led the
campaign through the GOP convention in Cleveland and was
instrumental in the vice-presidential selection.
Mr. Manafort was fired after
the convention amid news reports that he had received undisclosed payments from Viktor
F. Yanukovych, a former Ukrainian president and a pro-Russia
politician.
Richard Gates has worked
with Paul Manafort since the
mid-2000s and followed him
into Donald Trump’s campaign
in April 2016. He served as a
deputy until Mr. Manafort’s
ouster in August 2016.
Mr. Gates also was a lead
official with Mr. Trump’s inaugural committee, helping to organize an event for which a record $107 million was raised.
In late January, Mr. Gates
joined with other former campaign officials, including digital
director Brad Parscale, to start
a pro-Trump nonprofit group
called America First Policies. Mr.
Gates was forced out of that
group in mid-March as the
probe of Russian meddling in
the election intensified.
George Papadopoulos, a former foreign-policy adviser to
the Trump campaign, had little
political or foreign-policy experience when he joined the campaign in March 2016.
Mr. Papadopoulos has admitted that he misled the Federal Bureau of Investigation in a
January interview by telling
agents he had interacted before
joining Mr. Trump’s campaign
with an “overseas professor”
who had “substantial connections to Russian government officials” and who offered “dirt”
on Democratic presidential candidate Hillary Clinton. In fact, Mr.
Papadopoulos met with the professor in March 2016 after
learning he was joining the
campaign, court documents say.
the 2016 election since before
taking office. U.S. intelligence
agencies said in January that
Mr. Putin ordered an effort to
help Mr. Trump and hurt Mrs.
Clinton. Russia has denied any
meddling, and Mr. Trump has
reacted angrily at times to investigations by lawmakers and
prosecutors, calling the probes
a “witch hunt.”
The documents released on
Monday suggest Mr. Mueller is
pursuing multiple avenues of
investigation. His team, which
includes 16 attorneys versed in
public-corruption, fraud and
national-security matters, as
well as more than two dozen
FBI agents, has been present-
ing evidence before a federal
grand jury in Washington since
July.
Mr. Mueller also has been
investigating whether Mr.
Trump obstructed justice in
his firing earlier this year of
James Comey as FBI director,
according to people familiar
with the matter. Mr. Mueller
was appointed special counsel
just after the president’s firing
of Mr. Comey.
In an appearance before a
federal magistrate judge in
Washington, attorneys for
Messrs. Manafort and Gates
entered pleas of not guilty.
The judge set bail at $10
million for Mr. Manafort
and $5 million for Mr. Gates. A
hearing has been scheduled for
Thursday before Judge Amy
Berman Jackson.
After Monday’s hearing, a
lawyer for Mr. Manafort, Kevin
Downing, offered a fiery defense, saying there was “no evidence that Mr. Manafort or
the Trump campaign colluded
with the Russian government.”
He accused the special counsel
of using a “very novel theory”
to prosecute Mr. Manafort for
failing to register as an agent
of a foreign power between
2008 and 2014, and for allegedly making false and misleading statements on such forms.
Messrs. Manafort and Gates
publican National Convention
operations and rising to the
rank of deputy campaign manager. He also helped organize
the president’s inauguration, after Mr. Trump’s victory in November.
He received $70,000 in payments related to political work
for the Trump campaign
through a business entity listed
in the indictment, FEC records
show. The Republican National
Committee’s coordinated spending account with the Trump
could face as long as 20 years
in prison if convicted on one
count of conspiracy to launder
money alone.
The charges drew warnings
from Democrats that Mr.
Trump, after having fired Mr.
Comey, shouldn’t move to fire
Mr. Mueller or influence his investigation, a point that has
been echoed by some Republicans in the past.
“The president must not,
under any circumstances, interfere with the special counsel’s work in any way,” said
Senate Minority Leader Chuck
Schumer (D., N.Y.).
The White House said Mr.
Manafort’s indictment wasn’t
related to the White House or
the campaign but was about
separate matters. In Mr. Papadopoulos’s case, the White
House said it was about the
activities of a low-level player,
though Mr. Trump in March
2016 cited Mr. Papadopoulos
as one of five people advising
him on foreign policy.
“It doesn’t have anything to
do with us,” said White House
press secretary Sarah Huckabee Sanders, adding that the
president continues to reject
any suggestion that he or his
campaign worked with Russia
to influence the campaign.
The case against the 30year-old Mr. Papadopoulos
provides the most detailed
look yet at Mr. Mueller’s inquiry as it relates to alleged
collusion between the Trump
campaign and Russia. The documents highlighted that Mr.
Papadopoulos met with Mr.
Trump and his foreign-policy
advisers and told them he had
connections that could help arrange a meeting between Mr.
Trump and Mr. Putin.
“It seems clear that Papadopolous…is cooperating and
Mueller’s team is building on
that cooperation,” said Steven
Levin, a former federal prosecutor. “Clearly, the special
prosecutor wants to obtain evidence and charges against
campaign supervisors with Papadopolous’ assistance.”
campaign paid Mr. Gates’s Bade
LLC three times from September 2016 to January 2017 for
what is listed in FEC records as
“political strategy services.”
Between 2006 and 2012, Mr.
Manafort and Mr. Gates engaged
in a multimillion-dollar lobbying
campaign on behalf of Ukrainian
President Viktor Yanukovych,
who was seeking to burnish his
image as a Europe-oriented
leader despite close ties with
Moscow.
As part of that work, the two
men hired two well-known
Washington, D.C., lobbying firms
in 2012 to help. The firms
weren’t named in the legal document but have previously been
identified in filings as the Podesta Group and Mercury LLC. The
two firms registered to lobby
for a nonprofit entity called the
European Centre for a Modern
Ukraine rather than the government of Ukraine.
The Podesta Group didn’t respond to a request for comment
but the firm has said in April
that it believed it had complied
with all lobbying laws. It belatedly registered under the Foreign Agents act that month.
A partner for Mercury said in
a statement: “Mercury has and
will continue to fully cooperate
with the Office of the Special
Counsel in its investigation.”
—Julie Bykowicz
contributed to this article.
Podesta
To Leave
Lobbying
Firm
BY REBECCA BALLHAUS
AND BRODY MULLINS
Democratic lobbyist Tony
Podesta is leaving the Washington firm he founded as the
Podesta Group finds itself
caught up in an investigation
by Special Counsel Robert
Mueller, according to people
familiar with the move.
Mr. Podesta told employees
of his lobbying firm that he
planned to step aside, according to the people. His announcement came on the same
day that Paul Manafort and
Richard Gates, two former
campaign aides to President
Donald Trump, were indicted
and taken into custody.
Mr. Manafort faces charges
that he laundered more than
$18 million in funds from his
work for a pro-Russia party in
Ukraine through offshore accounts. Mr. Gates is charged
with helping Mr. Manafort
transfer funds and spending
more than $3 million himself.
They have pleaded not guilty.
The indictment of Messrs.
Manafort and Gates, which
was unsealed on Monday, lists
two companies—“Company A”
and “Company B”—that the
two former Trump campaign
aides allegedly solicited to
lobby on behalf of the proRussia party in Ukraine. Those
companies are Mercury LLC
and the Podesta Group, respectively, according to people
familiar with the matter.
Mr. Podesta declined to
comment, and a representative
for the firm didn’t respond to
requests for comment. Politico
first reported the plan for Mr.
Podesta’s departure Monday.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 31, 2017 | A5
NY
* * * * *
THE MUELLER INVESTIGATION
BY SHANE HARRIS
WASHINGTON—A
plea
agreement by a former foreign-policy adviser to Donald
Trump’s presidential campaign
represents the most substantive link to date between the
campaign and Russian attempts to influence the election through stolen emails,
meetings and other measures.
The foreign-policy adviser,
George Papadopoulos, acknowledged interacting with a
professor who had close ties to
the Kremlin and claimed that
Russian officials could provide
the Trump campaign with
“dirt” on Hillary Clinton in the
form of “thousands of emails,”
according to court documents
unsealed on Monday.
Mr. Papadopoulos pleaded
guilty earlier this month to lying to the Federal Bureau of
Investigation about his meetings with the professor and
with a female Russian national
he believed was related to
President Vladimir Putin. Federal officials said in the plea
agreement released Monday
that he has been cooperating
in the investigation since his
arrest July 27.
White House press secretary Sarah Huckabee Sanders
INDICT
Continued from Page One
Mueller “has the ability to flip
people without word leaking
out,” said Richard Hasen, a
law professor at the University
of California at Irvine. “This
can promote further cooperation with his probe,” he said.
The one-two timing of the
indictment and the guilty plea
quickly became a point of intrigue among legal experts.
Some suspected that Mr.
Mueller didn’t want the first
public move in the investigation to be completely disconnected from Mr. Trump’s campaign. So, they believe, he
chose to unseal simultaneously the Papadopoulos plea,
said Monday that Mr. Papadopoulos had a “very minor” role
in the Trump presidential
campaign as a volunteer, and
that his guilty plea had to do
with false statements, not
campaign actions.
However, Mr. Trump listed
Mr. Papadopoulos as one of
his main foreign-policy advisers in a meeting with the
Washington Post editorial
board in March 2016. And Mr.
Papadopoulos’s plea agreement indicates he communicated frequently about his
Russian contacts with multiple
Trump campaign advisers described in the document as
having a “high-ranking” and
“supervisor” roles.
Two of those people are
Paul Manafort, the former
Trump campaign manager, and
Richard Gates, his deputy, according to a person familiar
with their email communications with Mr. Papadopoulos.
Messers. Manafort and Gates
were named Monday in indictments on money-laundering
charges by the special counsel
investigating Russian interference in the 2016 election.
Mr. Papadopoulos told investigators and campaign officials
that he understood the Russians he was talking to had ac-
SAUL LOEB/AGENCE FRANCE-PRESSE/GETTY IMAGES
Mueller Case Makes New Link to Russia
Special Counsel Robert Mueller unveiled charges on Monday.
cess to people in high positions,
including to Mr. Putin and to
top officials in Russia’s Ministry of Foreign Affairs. From
these contacts, Mr. Papadopoulos pursued a mission as a liaison between the campaign,
which he told investigators he
understood wanted better relations with Russia, and Moscow,
which he said he was told
wanted to cultivate Mr. Trump.
It isn’t clear from the plea
agreement what emails the
Russian officials claimed to
possess. But U.S. intelligence
officials have concluded that
Russian government operatives stole emails from the
Democratic National Committee and Mrs. Clinton’s campaign chairman. Those emails
were then posted online in the
summer of 2016 as part of a
Russian government operation
to damage her campaign.
According to Mr. Papadopoulos’s account, he became
aware of the potentially damaging emails in April 2016.
That was a month after Russian hackers stole emails from
Mrs. Clinton’s campaign chairman, John Podesta, U.S. investigators have determined.
Russia has denied meddling
in the election. Mr. Trump has
repeatedly denied any knowledge of Russian efforts to
damage Mrs. Clinton or help
his campaign.
Former federal prosecutors
said that Mr. Papadopoulos’s
plea agreement is a sign that
Special Counsel Robert Mueller’s team is aiming to obtain
evidence against higher-ranking campaign members.
Mr. Papadopoulos told investigators that he was conducting “shuttle diplomacy”
on the campaign’s behalf with
officials from several countries, but omitted his contacts
with the “professor” and efforts to establish contact with
Russia’s foreign ministry, the
document states.
Mr. Trump was present
when Mr. Papadopoulos described his efforts to reach out
to Russia. In late March 2016,
after he had become a foreignpolicy adviser to the campaign, Mr. Papadopoulos attended a “national security
meeting” in Washington, D.C.,
with Mr. Trump and other foreign-policy advisers to the
campaign, according to his
‘MANAFORT and GATES generated tens of millions of dollars in income as a result of
their Ukraine work. In order to hide Ukraine payments from United States authorities, from
approximately 2006 through at least 2016, MANAFORT and GATES laundered the money
through scores of United States and foreign corporations, partnerships, and bank accounts.’
Excerpt from United States of America v. Paul J. Manafort, Jr. and Richard W. Gates III
which is closer to the heart of
his mandate to investigate potential collusion between Russia and Mr. Trump’s presidential campaign.
Russian officials have denied meddling in last year’s
election, and Mr. Trump has
denied any collusion by him or
his associates with Moscow.
The charges against Messrs.
Manafort and Gates gave heft
to Mr. Mueller’s probe, alleging a massive tax-fraud case
against the two men, said Solomon Wisenberg, a longtime
white-collar defense lawyer in
Washington. But “nothing on
the face of it relates to Russian interference in the 2016
election,” he said.
Prosecutors allege that
Messrs. Manafort and Gates,
in their work for Ukraine, conspired to evade reporting requirements for lobbyists who
represent foreign powers, and
to avoid paying U.S. taxes on
their profits through the use
of shell companies. Both men
have pleaded not guilty.
Hours after the indictment
became public, a federal judge
in Washington, at the request
of Mr. Mueller’s team, unsealed
a plea agreement that spoke directly to long-simmering allegations of collusion between Mr.
Trump’s campaign and Russia.
In the plea agreement, Mr.
plea agreement.
When he introduced himself to the group, he told
them “he had connections
that could help arrange a
meeting between then-candidate Trump and President Putin.” The Trump campaign
shared a photo of the meeting
on Instagram.
Mr. Papadopoulos sent multiple emails to other members
of the campaign about his
“outreach to Russia” and was
encouraged by a campaign supervisor to make a trip to Russia to meet with officials. The
campaign supervisor isn’t
named in the document.
Mr. Papadopoulos admitted
lying about the timing of his
efforts. In an interview with
FBI agents in January 2017, he
acknowledged that he had met
with the professor, who also
isn’t named in the plea agreement and is only said to be
“overseas,” but said their communications took place before
Mr. Papadopoulos joined the
campaign.
Mr. Papadopoulos later admitted he had met the professor for the first time in midMarch 2016, after he had
learned he would be a senior
foreign-policy adviser to the
campaign.
Papadopolous admitted he lied
to federal agents about his
contacts with a Kremlin-connected academic who told him
the Russians had “dirt” on
2016 Democratic presidential
nominee Hillary Clinton.
Mr. Mueller has taken heat
from Trump allies in recent
months for, among other
things, casting too wide a net
in his investigation.
But Monday’s revelations
revealed that the probe “didn’t
start with Bob Mueller,” said
Mr. Fishman. The financial records necessary to weave together the charges against
Messrs. Manafort and Gates
and the complexity of other
evidence show Mr. Manafort
had been under investigation
long before Mr. Mueller inherited the probe, he said.
Showcasing the Latest in Luxury Electronics
How The Rich Live
premium tech products on display at the luxury technology show
R
AND Luxury’s Holiday 2017
Luxury Technology Show
held at the Metropolitan
West on Oct 4 once again displayed
the latest, best-in-class products and
services to affluent consumers and
members of the press and media.
These VIP guests, retail executives,
media and entertainment industry
professionals had the opportunity to
experience the latest innovations from
the presenting sponsors Dassault Systemes
and ShadeCraft, and the debut of the
all-new 2018 Lexus LS 500.
The affluent elite were also treated
to signature cocktails, fine wine and
hors d’oeuvres from Scarpetta, Godiva,
Vidalco International, Cusqueña Beer,
and True Vodka while interacting with
tech’s most future-looking innovators,
services and products.
The LTS continues to expand
its audience of affluent VIPs with its
focus on high-end, unique products
only within the grasp of the wealthy
elite.
This year’s event got even crazier with
Kanye West’s producer playing a Moog
synthesizer ... Now excuse me while
I join the indoor pool party with my
sports jacket on
CNET
“The New York event earlier this
year was a sold-out success with hundreds
of Media, Influencers and VIP guests.
This holiday showcase was another
exciting experience with the addition
of multiple exclusive premieres from
our sponsors,” states Bradford Rand,
CEO of RAND Luxury, Cyber Security
Summit & Luxury Technology Show.
“New York City is a magnet for luxury
trend-setters and press. All of our
guests had the unique opportunity
to review and acquire the latest in elite
electronics, many of which are not even
available yet in the marketplace!”
Brand ambassadors from a wide variety
of industries were on site to highlight
their latest technology. Product categories
included wearable & lifestyle technology,
wireless speakers, home theater & automation, smart devices, transportation,
home improvement, and much more.
Just a few of the premieres unveiled at
the 2017 LTS include:
Dassault Systemes 3DEXCITE
showed off the HTC Vive luxury DS
Virtual Vision Immersive Configurator.
An experience built on exceptional
digital, Dassault Systemes showcased
a fully 3d experience - available at your
fingertips, in real-time. 3DEXCITE gives
anyone the ability to put their product
in any city or landscape on earth at any
time, in any climate.
ShadeCraft is a robotics and tech
startup based in Los Angeles, California,
with a mission to improve people’s lives
outdoors. ShadeCraft’s flagship product,
SUNFLOWER, is the world’s first
robotic shading system that tracks the
sun and boasts a full set of features
that include GPS, Bluetooth and WIFI
connectivity, a high-definition camera,
voice activation, speakers to stream audio, and controlled lighting – all powered by solar energy.
Lexus - Lexus made its official
New York unveiling of the all-new 2018
Lexus LS 500. Longer and lower than
the model it replaces, the all-new LS
debuts a strikingly sleek and bold design
with a coupe-like silhouette punctuated
by the unique Lexus design language.
Time to bask in the glittering glow ...
at the Luxury Technology show.
High-Def Digest
Companies interested in showcasing
their cutting-edge tech at the next
LTS, contact Bradford Rand by emailing
BRand@RANDLuxury.com or call
212.655.4505 ext 223.
2018 Luxury Tech Show: March 28th
Official Media Sponsors Included:
Partial List of Brands Showcasing & sponsoring:
unknownlab
TheLTS.com
Produced by RAND Luxury
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
A6 | Tuesday, October 31, 2017
* *
THE WALL STREET JOURNAL.
WORLD NEWS
Spain Seeks Charges Against Separatists
Madrid seizes control
of Catalonia in smooth
process, as movement’s
leader goes to Belgium
PAU BARRENA/AGENCE FRANCE-PRESSE/GETTY IMAGES
BARCELONA—Catalonia’s
former leader appeared by
surprise on Monday in Belgium, where some politicians
have supported the Spanish
By Jeannette
Neumann,
Marina Force
and Natalia Drozdiak
region’s independence, as Madrid sought charges against
him and other separatists for
rebellion, sedition and misappropriation of public funds.
Still, the first working day
in Catalonia under Madrid’s
direct rule was calmer than
expected, as most separatist
leaders stayed away from
work after Madrid ordered
them to step down and their
parties agreed to participate
in a new December election.
Spain’s Interior Ministry
greeted the new head of the
Catalan regional police force,
the Mossos d’Esquadra, a
prized symbol of the region’s
autonomy, without incident in
Madrid.
Spaniards had been waiting
to see whether Carles Puigdemont, the president of Catalonia until Saturday and leader
of the separatist push, would
try to show up to work in defiance of Spain. After Catalo-
government whose authority
many of them say they no longer recognize.
“How can you justify participating in these elections if
you’ve just declared independence?” said Andrew Dowling,
a specialist on Catalan and
Spanish history at Cardiff University. Mr. Puigdemont’s appearance in Belgium also undermines
the
separatist
movement’s proclamation, he
added. “What kind of independence is it if your president
and his cabinet go into exile?”
An opinion poll published
Sunday showed pro-union parties would hold a small lead in
the ballot. Other recent surveys, though, have shown the
snap election would yield similar results to the last regional
election in 2015, when separatist parties won 48% of the
vote and a majority of seats in
parliament.
Over the weekend, Catalan
leaders were stripped of their
officials cars, bodyguards and
official portraits were removed from the walls of public buildings, a Madrid government official said.
Spain’s state prosecutor
José Manuel Maza on Monday
sought charges against 14 former members of Catalonia’s
regional government, including Mr. Puigdemont.
If Catalan leaders are found
guilty of sedition, they could
face up to 15 years in prison. If
they are found guilty of rebellion, they could face up to 30
years in prison.
Economy Maintains
A Relatively Fast
Pace of Expansion
MADRID—Spain’s economy likely expanded 0.8% in
the third quarter, putting the
eurozone’s fourth-largest
economy on track to show
growth of more than 3% this
year, the national statistics
agency reported in preliminary data released Monday.
If confirmed, the thirdquarter rate represents a slight
slowdown from the 0.9% rate
of expansion in the second
quarter. Economists expect
growth to slow in 2018.
Spain’s economy is expanding
faster than that of most major
eurozone countries.
—Jeannette Neumann
Prosecutors seek to charge ex-Catalan Vice President Oriol Junqueras, right, in Barcelona on Monday.
nia’s parliament declared independence for the northeastern
region, Spain’s central government seized temporary control
of it over the weekend, ousting Mr. Puigdemont and about
150 separatist-allied officials,
including the regional police
chief.
Television crews on Monday paced anxiously around
the headquarters of the Catalan government, where the
Spanish flag still flies alongside the Catalan one. There
was no sign of Mr. Puigdemont, who had only posted a
cryptic photo in the morning
of the regional government
headquarters in Barcelona, the
capital of Catalonia.
Mr. Puigdemont had unexpectedly traveled to Belgium, a
person familiar with the matter said, as Spain’s state prosecutor announced details
about the criminal charges he
sought against the Catalan
leader and his government.
Belgium’s junior minister
for asylum, Theo Francken,
said on Sunday that it was
“not unrealistic” to grant the
former Catalan leader asylum
in Belgium. Mr. Francken is a
member of a party that advo-
cates for greater autonomy for
Flanders and he has openly
supported the Catalan separatist movement. Belgian Prime
Minister Charles Michel, however, quickly denied the government was considering asylum for Mr. Puigdemont,
saying it wasn’t “on the government’s agenda.”
On Monday, one ousted
Catalan cabinet member
posted a photo of himself on
Twitter working at his desk
and some lawmakers said they
were working to build the new
Catalan republic they proclaimed on Friday even though
Madrid dissolved the regional
parliament and called new
elections for Dec. 21.
But other separatists had
already shifted into campaign
mode for those elections. Mr.
Puigdemont’s pro-independence political party and another separatist party said
they would participate in the
ballot. One hard-line independence party hasn’t clarified its
stance.
There had been doubts
about whether separatist parties would participate in the
regional elections because the
vote was called by a central
Reminders of Divided Past Haunt Pro-Union Enclave
BADIA DEL VALLÈS, Spain—
When Catalonia’s parliament
declared the region independent from Spain, Ángeles
Mazón, a 63-year-old housewife, broke down and cried.
“I feel as though we’re in
another civil war,” Ms. Mazón
said in this staunchly prounion town outside Barcelona.
In her view, the decision of
Catalonia’s parliament—which
was controlled by separatists—to proclaim independence after two million of
around five million registered
Catalans voted in favor of secession in an unauthorized
referendum has triggered fissures reminiscent of one of
Spain’s most divisive times.
“They’re two million but
we’re seven million in Catalonia!” Ms. Mazón said. Faced
with such dramatic circumstances, Prime Minister Mariano Rajoy was right to take the
extraordinary step on Friday of
seizing temporary control of
Catalonia and ousting separatist leaders, she said.
“I would have liked for everything to have remained the
same and for the takeover not
to happen,” said Miguel Fermín,
a 67-year-old former city council member in a nearby town.
But “the Spanish government
needed to find a solution.”
Separatist leaders say they
had a mandate to declare independence after the controversial referendum and argue Catalonia
would
thrive
MATTHIAS OESTERLE/ZUMA PRESS
BY JEANNETTE NEUMANN
AND MARINA FORCE
A Catalan demonstrates in Barcelona against secession as a confrontation grows between the federal and regional governments.
economically and politically
outside Spain. Pro-union Catalans, on the other hand, say
they are eager to move beyond
Spain’s deepest political crisis
in decades and see potential solutions in a constitutional
amendment to allow a legal independence referendum.
More immediately, they hope
that Catalan parliamentary
elections set by Mr. Rajoy for
Dec. 21 will help move the region out of the quagmire.
“It´s going to be the mostvoted ballot in history,” said
Ms. Mazón’s husband José
Lobo, a 65-year-old retired
worker in the construction industry. The couple is distressed about the hundreds of
companies that have moved
their headquarters out of Catalonia in recent weeks and
worry the international car
company where their son
works could be next.
An opinion poll published
Sunday showed pro-union parties would hold only a small
lead in the December ballot.
Other recent surveys, though,
show the ballot would see simi-
lar results to the last regional
election in 2015, when separatists won 48% of the vote and a
majority of seats in parliament,
compared with 39% for prounionists parties.
In 2015, only 15% of voters
in Badia del Vallès, where Ms.
Mazón and her husband live,
supported pro-independence
parties, the lowest figure in
Catalonia. The working-class
town of 13,500 on the outskirts of Barcelona, a stronghold for the center-left Socialist Party, was built by Spain’s
national housing ministry in
the late 1960s, the final years
of Francisco Franco’s four-decade dictatorship.
Many in the town accuse
separatist leaders of pursuing
what they describe as the
pipe-dream promises of an independent republic, which
have triggered political and
economic turmoil in Catalonia
and the rest of Spain.
On Saturday, Catalan separatist leader Carles Puigdemont gave the first sign that
pro-independence forces will
try to disobey Madrid’s direct
rule, potentially deepening the
turmoil. Mr. Puigdemont refused to acknowledge Madrid
had ousted him as Catalonia’s
president under the sweeping
powers granted to the prime
minister under Article 155 of
Spain’s constitution.
That didn’t go over well
with some in Badia del Vallès.
Mr. Puigdemont “is not my
president because what he has
done is illegal,” said Pamela
Josuna, a 35-year-old clerical
worker. “I respect the application of Article 155 because
there was no alternative.”
Others were befuddled.
“Right now I don’t know who
my president is,” Eduardo
Guillén said. “I don’t know if I
live in a Catalan Republic or in
Spain, because everybody says
a different thing,” the 38-yearold transport worker said.
Argentine Leader Floats Policy Proposals Confidence in Europe’s
BY TAOS TURNER
BUENOS AIRES—President
Mauricio Macri asked Argentines to back a broad array of
new policies aimed at overhauling the tax code, social-security system and public institutions to attract investment
and make the economy more
competitive.
Mr. Macri, in a speech to
governors, business leaders and
top legislators on Monday, said
Argentina needs to enact policy
changes throughout the federal
government and provinces.
Buoyed by an unexpectedly
strong performance in midterm
elections last week, Mr. Macri
said he would ask Congress to
lower taxes and cut the federal
deficit. He also said he would
ask legislators to make it easier for companies to create
jobs and employ workers.
“If we don’t have a basic
consensus on the path forward
for our country’s development,
our plans for public institutions will not be sustainable
and there will be no invest-
ment,” Mr. Macri said.
Although he offered broad
policy outlines, he gave few details, saying he wants other
leaders to forge a consensus on
the finer policy points. He proposed creating a committee of
experts to find ways to overhaul the social-security system.
His cabinet chief, Marcos Peña,
later said at a press conference
that it could take several years
for the committee to offer policy recommendations.
Meanwhile, Mr. Peña said,
the administration will move
to crack down on abuse of the
retirement system and ensure
benefits are adjusted in line
with inflation.
Mr. Macri criticized provincial governments and his predecessor, Cristina Kirchner,
who oversaw a large expansion of the federal workforce.
He said Argentina has been
hiring far too many state
workers and that the public
sector needs to go on a diet.
“We need to begin walking
an austere line,” Mr. Macri
said, pledging to slash red
Trimming the Fat
Argentine President Mauricio
Macri has proposed measures to
attract investment and make the
economy more competitive.
Budget deficit
Percentage of GDP
6%
5
Projected
4
3
2
1
0
2014 2015 2016 2017 2018 2019
Source: Argentina's government
THE WALL STREET JOURNAL.
tape and cut spending.
The president didn’t say
how he would cut spending,
but Treasury Minister Nicolas
Dujovne is expected to discuss
tax measures on Tuesday.
Mr. Macri also excoriated
Congress for wasting taxpayer
money. As an example, he said
Argentina’s congressional library has more than 1,700 employees, more, he claimed,
than most of the world’s great
libraries. Chile’s congressional
library has fewer than 250 employees, he said.
“We have to balance spending at all levels of government.
This is nonnegotiable,” Mr.
Macri said.
Such talk of austerity measures could spark opposition
from critics and average Argentines, many of whom support an expansive role for the
state. Mr. Peña sought to play
down concerns that the government will slash popular social programs.
“Next year, social spending
will reach a historic record,”
Mr. Peña said. “There’s no reason to go around stirring up
the ghosts of fear.”
A member of the president’s cabinet said Mr. Macri
would call on Congress to
work over the holiday break in
December to pass key legislative initiatives.
Economy Tops Forecast
BY PAUL HANNON
Businesses and households
in the 19 countries that use
the euro are more upbeat
about their prospects than
they have been for almost 17
years, a sign that the currency
area’s economic recovery is
set to continue at a robust
pace despite renewed threats
to its political stability.
The European Commission
said Monday its economic sentiment indicator, which aggregates business and consumer
confidence, rose to 114.0 in October from 113.1 in September
to reach its highest level since
January 2001. Economists surveyed by The Wall Street Journal had expected a much
smaller rise.
The strengthening of confidence suggests the eurozone
economy will continue to enjoy a more robust pace of
growth in the final months of
what has already been a surprisingly strong year. More-
confident businesses tend to
invest more, while optimistic
households spend more freely.
The pickup in sentiment also
suggests that businesses and
consumers were undaunted by
the prospect of a reduction in
the stimulus provided by the
European Central Bank. Policy
makers announced Thursday
they will buy €30 billion ($35.4
billion) a month of mostly government bonds from January,
down from the €60 billion they
buy now.
Businesses and consumers
demonstrated equanimity in
the face of political uncertainty. German sentiment rose
to its highest level since April
2011 in the wake of elections
that saw the nationalist Alternative for Germany party win
nearly 13% of the vote and a
place in parliament for the first
time. In Spain, where leaders
of wealthy Catalonia are pushing for independence, the measure of sentiment hit its highest level since the end of 2015.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 31, 2017 | A7
* * * *
WORLD NEWS
WASHINGTON—U.S. Special
Operations Forces captured a
Libyan man believed to be part
of the Sept. 11, 2012, attack on
a U.S. diplomatic compound in
Benghazi that killed Ambassador Christopher Stevens and
three other Americans, U.S. defense officials said Monday.
Mustafa al Imam was among
the armed men who stormed
the U.S. compound and set several buildings ablaze, a U.S. defense official said. There is no
evidence that he was connected
to the terror group suspected
of being behind the Benghazi
attack, Ansar al Sharia, the U.S.
defense official said.
The Justice Department
said that Mr. Imam, 46, has
been charged in a three-count
criminal complaint with killing
a person in the course of an
attack on a U.S. federal facility; providing material support
to terrorists; and discharging
and brandishing a firearm during a crime of violence.
The U.S. military is transporting Mr. Imam to the U.S.
where the Justice Department
will prosecute him in federal
court in Washington, the official said. The suspect is expected to arrive within days.
Mr. Imam is the second suspect
to be captured in the attack.
The Federal Bureau of Investigation and Justice Department led the investigation,
and U.S. forces in Libya captured the suspect late Sunday,
defense officials said. The U.S.
military wouldn’t say how
many troops were involved or
where the suspect was captured. They said no shots were
fired.
U.S. officials wouldn’t say
specifically what role they believe Mr. Imam played in the
attack, in which scores of
armed men stormed the compound and razed several
buildings, including one housing Mr. Stevens and Steven
Smith, an information management officer.
After attackers set the building on fire, Mr. Stevens and Mr.
Smith hid in what was supposed to be a safe room, but
became separated from others
in the building as they all
sought to escape outside.
One of the security guards
assigned to the compound told
officials at the time that he repeatedly returned to search
for the men, but Mr. Stevens
and Mr. Smith eventually died
of smoke inhalation.
Looters who arrived at the
compound after the attack
found Mr. Stevens and transported him to Benghazi Medical Center, where he was pronounced dead, officials have
said.
Two other men, Central Intelligence Agency contractors
Tyrone Woods and Glen Doherty, died at a CIA compound
about a mile away in a subsequent attack that evening.
In 2014, U.S. forces in Libya
captured Abu Khattala, who
also is suspected of participating in the attack and who
went on trial in federal court
in Washington this month.
President Donald Trump
praised those involved in the
operation, and promised that
the slain Americans wouldn’t
be forgotten. He also appealed
to Libya to push forward with
international plans to form a
single, unified government.
BY MATINA STEVIS-GRIDNEFF
KISUMU, Kenya—Uhuru Kenyatta was officially declared
the winner of Kenya’s repeat
presidential election, but the
announcement offered little
closure after a messy and
deadly polling season in East
Africa’s leading economy.
Just 39% of registered voters turned out Thursday,
handing Mr. Kenyatta a second
five-year term with 98.3% of
the vote, after opposition
leader Raila Odinga boycotted
the contest.
“Today, I as a Kenyan celebrate the resilience of the nation, but I also celebrate the
resilience of our democracy,”
Mr. Kenyatta said in his televised acceptance speech from
Nairobi on Monday. “Any other
county experiencing the turns
and twists of [the] recent electoral process would have burst
asunder.”
Polls weren’t held in four
opposition-stronghold counties in the west, including Kisumu, Mr. Odinga’s ancestral
home, where opposition protesters have clashed with police in recent days.
At least 14 people have
been killed countrywide in
election-related violence since
last week, people familiar with
the situation said.
As Mr. Kenyatta gave his
acceptance speech, dozens of
young men gathered in central
Kisumu, burning tires and
chanting pro-Odinga slogans.
“As a country, we are transiting through one of the most
difficult and legally uncharted
waters of having to conduct
two presidential elections
within two months,” said Wafula Chebukati, the chairman
of the Independent Electoral
and Boundaries Commission,
before declaring Mr. Kenyatta
the winner.
“Some of the members of
YASUYOSHI CHIBA/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY NANCY A. YOUSSEF
Kenya President Wins Rerun Vote
People in Kisumu on Monday watched a live broadcast announcing that incumbent President Uhuru Kenyatta had won a new term.
our staff lost their lives and
property in the last presidential election; innocent children, women and men lost
their lives…all in the midst of
political competition,” he
added.
The polarization in the
wake of the polls kindled small
pockets of tribally motivated
violence in western Kenya and
in a neighborhood of Nairobi,
raising the specter of ethnic
clashes in a country that saw
large-scale postelection violence following the December
2007 vote.
The U.S. Embassy said it
was “profoundly concerned by
the outbreaks of violence” and
called for Kenyans to “come
together at this critical moment to reject the politics of
hatred.”
Mr. Kenyatta acknowledged
that legal battles over the poll
could lie ahead.
“My victory today is likely
to be subjected to a constitutional test through the courts.
And as I have demonstrated
repeatedly, I will submit to
this constitutional path no
matter its outcomes,” he said.
The vote went ahead after a
scheduled a new vote.
However, Mr. Odinga and
his supporters boycotted it,
claiming the government
planned to rig the poll and become an “electoral dictatorship.”
In recent days, Mr. Kenyatta’s camp has ramped up
the rhetoric against Mr.
Odinga. In a television interview, his deputy, William Ruto,
compared the veteran politician, who was once his ally, to
warlord Joseph Kony.
The tribal undertones of
the tense environment are
hard to ignore. In Kisumu, opposition supporters said they
wanted to secede and form a
new state. Mr. Kenyatta comes
from the dominant Kikuyu
tribe; Mr. Odinga from the Luo
tribe.
In Kisumu town, on the
banks of Lake Victoria, locals
claimed that Luos and their al-
Deep rifts remain in
the East African
nation despite Uhuru
Kenyatta’s victory.
series of twists that deepened
a rift between the two main
parties and hindered the
chances of unifying the nation.
In September, the Supreme
Court annulled Mr. Kenyatta’s
victory from Aug. 8, citing
widespread irregularities, and
lies had been marginalized
and cut out of Kenya’s growing
prosperity.
Mr. Odinga said he would
speak on Tuesday to pave a
way forward for his party,
known as the NASA coalition,
which he says is now a “national resistance movement.”
“We are silent but we are
not peaceful, we are awaiting
directions from our general,”
said
40-year-old
George
Agumba, referring to Mr.
Odinga.
In the past decade, Kenya
has emerged as a relatively
stable democracy and a strong
economy, while other countries on the continent have
struggled on both fronts. Its
capital, Nairobi, is home to
multinational companies’ offices, a budding technology
hub and financial services that
serve the entire East African
region.
Rwanda Leader’s Critics Allege False Charges
BY NICHOLAS BARIYO
When police officers barged
into the gated Kigali home of
Diane Rwigara last month, the
prominent opposition leader
experienced what government
critics are calling a new tool in
Rwandan President Paul Kagame’s crackdown: accusations
of financial crimes.
As police arrested Ms. Rwigara and took her, her mother
and sister to jail, the officers
said the family was accused of
evading taxes and forging documents. The 35-year-old accountant was ultimately barred from
running for the presidency.
Ms. Rwigara’s brother Aristide, who lives in the U.S. and
recounted the Sept. 4 incident,
said authorities are making up
charges to punish Ms. Rwigara
for the political threat she represented to Mr. Kagame. “It’s
revenge against my sister for
daring to challenge Kagame,”
he said. Ms. Rwigara couldn’t
be reached to comment.
Since winning nearly 99% of
the vote in August’s election,
Mr. Kagame has stepped up a
campaign targeting opposition
members, business leaders and
rights activists, some of these
people said in interviews.
In addition to allegations of
treason and disrupting national
security, prosecutors are leveling charges of financial wrongdoing that often result in assets such as businesses and
homes being seized by authorities, these people said.
A Rwandan government
U.S. Commits Funds
To a Force Fighting
Terrorism in Africa
CYRIL NDEGEYA/AGENCE FRANCE-PRESSE/GETTY IMAGES
Benghazi
Attack
Suspect
Is Caught
UNITED NATIONS—The U.S.
said it would commit as much
as $60 million to a multinational force in West Africa to
combat the growing regional
terror threat, a move that
comes after four Americans
were killed in an extremist attack in the same area.
Secretary of State Rex Tillerson announced the funding
and United Nations Ambassador Nikki Haley told the U.N.
Security Council on Monday
that the money would be secured from Congress and the
U.S. would offer financial support to five countries that
make up the force.
The force is set to have
5,000 soldiers drawn from five
African countries—Niger, Mali,
Burkina Faso, Chad and Mauritania—and will require $400
million in the first year of operation, starting in the spring.
The European Union also
has pledged around $60 million
for the effort and the French
and German governments each
said they would provide about
$9 million, officials said.
—Farnaz Fassihi
and Ben Kesling
Ms. Rwigara was disqualified
from the race after the government said she failed to present
enough signatures from voters
to back her bid. An activist political group representing her
denied the allegation.
Then the Revenue Authority
stepped in, claiming her family’s tobacco business, Premier
Tobacco Co., hadn’t paid taxes
in five years and hitting it with
a $6 million tax bill. Authorities
froze business bank accounts.
Police
confiscated
some
$150,000 in cash during a
search at the family home. For
several weeks, Ms. Rwigara was
required to visit police for daily
interrogations before finally being arrested and then released.
But later in September, officials charged Ms. Rwigara
with inciting an insurrection,
leading to her being jailed
again until her trial.
At a bail hearing in Kigali
on Oct. 13, a furious Ms. Rwigara told the court that she had
been kept in solitary confinement with handcuffs on.
Many political observers
viewed Ms. Rwigara as one of
Mr. Kagame’s most formidable
challengers. Like Mr. Kagame,
she is a member of the Tutsi
ethnic group that was targeted
in the genocide, making her immune to charges of genocide
denial that authorities have
used to silence other opponents.
“Crippling her family business remains the only viable
option,” Mr. Jeffery said. “But
it could come at a big cost for
the country.”
Opposition leader Diane Rwigara was brought to court this month.
spokeswoman denied that allegations of white-collar crimes
and other charges were being
used to silence critics.
“Rwanda Revenue Authority is
mandated to collect taxes from
everyone,” she said. “No one is
treated differently, irrespective of their political views.”
In power since 2000, Mr.
Kagame is credited with turning around an economy shattered by the 1994 genocide.
But international criticism
over rights violations is being
joined by warnings that the
crackdown on opposition businesses could threaten the
newfound prosperity.
In a congressional hearing
last month, Donald Yamamoto,
the acting U.S. assistant secretary of state for African affairs,
warned that harassment put at
risk Rwanda’s eligibility for the
African Growth & Opportunity
Act, which gives it duty-free access for some goods to the
American market.
“It is almost as though
[Mr. Kagame] himself does not
believe that nearly 100% of the
population is behind him,”
Jared Jeffery, a Rwandan analyst with NKC African Economics, said of the government crackdown.
Ms. Rwigara’s legal problems
escalated shortly after she announced plans to run for the
presidency in May. Fake nude
photos of her were circulated on
the internet. Activists blamed
the government for arranging a
smear campaign, an allegation
officials denied. Weeks later,
SOUTH KOREA
Agreement Seeks
To Restore China Ties
China and South Korea
moved Tuesday to put a longrunning geopolitical dispute behind them, committing to restore military, political and
economic ties more than a year
after Seoul’s decision to install a
U.S. missile-defense battery
roiled relations between the two
neighbors.
The agreement will likely
come as a relief in Washington,
which has struggled to keep a
unified front among North Korea’s neighbors in dealing with
the rising nuclear missile threat
from Pyongyang.
As recently as last year,
Seoul and Beijing had cultivated
close political and economic ties,
part of the South Korean government’s attempts to get China
to squeeze its allies in Pyongyang harder.
But China’s opposition to
South Korea’s decision to install
the Terminal High-Altitude Area
Defense, or Thaad, missile-defense battery, soured relations
between the two countries.
—Jonathan Cheng
CANADA
U.S. Nafta Proposals
Are Called ‘Troubling’
Canada’s Minister of Foreign
Affairs Chrystia Freeland said
the U.S. has presented some
“troubling” proposals in talks to
renegotiate the North American
Free Trade Agreement.
Ms. Freeland, speaking Monday at the Toronto Global Fo-
rum, cited U.S. proposals on
chapter 19 arbitration panels,
which allow countries to bypass
national courts in tariff disputes,
and a sunset clause that would
automatically terminate the
trade pact if the parties don’t renew it every five years.
She added that the U.S. and
Canada have made progress on
less-controversial matters, such
as eliminating red tape that can
hinder Nafta trade.
Ms. Freeland also said that
Canada believes a diplomatic solution is possible on North Korea
and said she has recently spoken with U.S. Secretary of State
Rex Tillerson and South Korean
officials to discuss a way forward.
“It is important that South
Korea is part of the dialogue,”
Ms. Freeland said.
—Sara Schaefer Muñoz
ADNAN ABIDI/REUTERS
WORLD WATCH
DISPOSSESSED: Rohingya Muslim refugees from neighboring Myanmar waited to receive
humanitarian aid at Palong Khali refugee camp, near Cox’s Bazar, Bangladesh, on Monday.
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
A8 | Tuesday, October 31, 2017
THE WALL STREET JOURNAL.
* *
WORLD NEWS
Saudis Open Stadiums to Women Israelis
Destroy
Kingdom will allow
female sports fans at
events, easing another
gender stricture
Militants’
Tunnel
BY MARGHERITA STANCATI
By Rory Jones in Tel
Aviv and Abu Bakr
Bashir in Jerusalem
FAYEZ NURELDINE/AGENCE FRANCE-PRESSE/GETTY IMAGES
The Saudi government said
it would allow women to attend sporting events in stadiums for the first time in the
latest step to loosen the country’s strict social rules.
The change will take effect
starting early next year in major stadiums in three cities—
Riyadh, Jeddah and Dammam—
according to a government
announcement late Sunday.
The shift marks another
small but symbolic step toward
greater gender equality in the
kingdom, where tribal customs
and an austere interpretation
of Sunni Islam have long combined to create an ultraconservative society where women in
particular are harshly restricted. The monarchy is
gradually loosening some
strictures as it moves to open
the country’s oil-dependent
economy to the outside world.
Crown Prince Mohammed
bin Salman, King Salman’s 32year-old son, who is steering
Saudi Arabia through its
transformation, vowed last
week to return the country “to
the tolerant, moderate Islam”
of the past. That was the most
explicit acknowledgment so
far of the kind of social change
the Saudi leadership is seeking.
In September, King Salman
lifted the world’s only ban on
women driving, starting from
June 2018. While many religious hard-liners criticized the
decision, the pushback wasn’t
Israel blew up an underground tunnel that had infiltrated Israeli territory from
the Hamas-controlled Gaza
Strip, killing at least seven Gazan militants and wounding
more than a dozen, the Israeli
army and Palestinian health
authorities said Monday.
The government made an exception to the stadium ban last month, when it allowed women access to a celebration in Riyadh for the
anniversary of the founding of modern Saudi Arabia. At sporting events, women will be restricted to the ‘family section.’
widespread.
Women’s position in Saudi
society has improved in recent
years. They sit in the Shoura, a
legislative body appointed by
the king, and as of last year also
in the popularly elected municipal councils. More of them are
entering the workforce, something the government is encouraging under its plan to encourage private-sector growth.
Many of the harshest restrictions remain in place. For
example, women are still legally required to have a male
guardian—typically a father,
husband or even a son—whose
permission they need to travel
abroad or marry, for instance.
In stadiums, women and
men won’t be allowed to mix
freely. As is currently the case
in most public places, women
will be restricted to the “family section,” an area reserved
for women and their family
members that is separate from
the “singles,” or men-only,
area.
The stadiums will have separate entrances and ticket
counters for women and their
relatives, Saudi Arabia’s General Sports Authority said.
Many women cheered the
change even if they didn’t plan
to take advantage of their new
freedom.
“I don’t like soccer and I
don’t think I will go to the stadium,” said a tweet from the
account of a Twitter user who
identifies herself as Saudi in
her Twitter feed. “But I’m very
happy with the decision. I
don’t like women being
banned from anything if there
isn’t a logical reason.”
Others lamented the step.
“Faith is lost. Judgment
Day is coming,” said a tweet
from the account of Abdul
Aziz al-Zailai, who identifies
himself in his profile as from
Saudi Arabia.
Saudi Arabia isn’t the only
country where women are
barred from entering stadiums. The kingdom’s regional
rival Iran also bans women
from sporting events.
—Nazih Osseiran
contributed to this article.
Taliban, in Push for Deal, Say U.S. Captive Ill
KABUL—An American professor held hostage by the Taliban for more than a year is seriously ill and his condition is
deteriorating rapidly, the militant group said, as it presses
the Trump administration to
negotiate his release.
The professor, Kevin King,
and an Australian colleague,
Tim Weeks, were kidnapped in
the Afghan capital Kabul in August 2016 by five gunmen
wearing government military
uniforms as they traveled in a
sport-utility vehicle near the
campus of the American University of Afghanistan, where
both taught English.
In its statement Monday, the
Taliban, Afghanistan’s largest
insurgent group, said Mr. King,
60, was suffering from what it
described as a dangerous kidney and heart condition.
“We have periodically tried
ASSOCIATED PRESS
BY CRAIG NELSON
AND HABIB KHAN TOTAKHIL
Kevin King, a teacher held by the Taliban, is shown in a video image released by the group in June.
to treat and care for him but
since we are facing war conditions and don’t readily have
access to health facilities,
therefore we are unable to
deliver complete treatment,”
the group said.
The Taliban urged the U.S. to
quickly meet the conditions for
his release, and said it wouldn’t
be held responsible for Mr.
King if his illness becomes in-
curable or he dies in captivity.
A Taliban spokesman, Zabiullah
Mujahid, said he wasn’t allowed
to discuss the group’s demands.
The Taliban have previously said they would release
their foreign hostages in exchange for the freedom of
Anas Haqqani, brother of the
leader of the Taliban-affiliated
Haqqani network who is imprisoned in Kabul.
The U.S. Embassy in Kabul
declined to comment on the
Taliban’s demands or the
group’s claims about Mr. King’s
health.
Mr. King’s family couldn’t be
reached to comment.
Unlike Islamic State, which
regularly executes its hostages
and videotapes the act for distribution on the internet, the
Taliban have accepted ransom
payments for the release of
captives and carried out prisoner swaps.
Afghan authorities said
Monday they believe Messrs.
King and Weeks are being held
in Pakistan, which the U.S. and
Afghanistan have accused of
providing sanctuary to Taliban
leaders and fighters, including
those of the Haqqani network.
The tunnel was “detonated”
in a controlled explosion, the
army said, without providing
further details. It was the third
such passageway into Israel
discovered by the Israeli army
since 2014, when it fought an
air and ground war with
Hamas, in part to destroy the
militants’ network of tunnels.
Officials from both Hamas
and Islamic Jihad, a Palestinian militant and political
group based in the West Bank
and Gaza, said that they had
lost operatives in the explosion. Islamic Jihad also vowed
to retaliate against Israel, saying the tunnels existed to defend the Palestinian people.
The incident is likely to increase tensions in Gaza, as the
West Bank-based Palestinian
Authority moves forward with
a long-awaited reconciliation
process that would see it take
back control of the enclave
from Hamas, a move opposed
by some extremist fighters in
the strip.
The Israeli army since 2014
has developed and begun constructing an underground barrier around Gaza to detect and
destroy cross-border tunnels.
The army said it used the new
technology to find the tunnel
destroyed on Monday.
Hamas in 2014 mounted assaults on Israeli forces
through a labyrinth of tunnels.
The subsequent Israeli offensive in Gaza led to the deaths
of 2,205 Palestinians and 71
Israelis and the destruction of
18,000 Palestinian homes, according to the United Nations.
The Palestinian Authority in
the coming days is expected to
take control of border crossings
into Gaza and return its security
forces to the strip, before organizing presidential and parliamentary elections with Hamas.
Hamas and the dominant
Fatah party of authority President Mahmoud Abbas have for
weeks been negotiating a rapprochement after a 10-year rift.
A key obstacle to the talks
remains whether Hamas will
give up its arsenal of weapons
and dismantle its militant arm,
known as the Izz al-Din al-Qassam brigades. The militant
wing manages and maintains
Hamas’s underground network.
FROM PAGE ONE
SPRINT
DON’T TAKE NEWS
AT FACE VALUE.
Support news literacy at
thenewsliteracyproject.org
Continued from Page One
to people familiar with the
matter. Officials at T-Mobile
were caught off guard by the
development, said others familiar with the matter.
SoftBank’s founder and chairman, Masayoshi Son, is concerned about giving up too
much control in the potential
transaction, said the people familiar with the break-down in
the talks. The two sides also
have been unable to agree on a
valuation for Sprint’s shares,
they added, though the talks
could be revived at a later date.
Sprint CEO Marcelo Claure
is also on SoftBank’s board.
SoftBank, which owns more
than 80% of Sprint, had been in
negotiations with T-Mobile’s
parent Deutsche Telekom AG
on an all-stock deal that would
give the German firm control
over the combined U.S. company.
Sprint shares tumbled Monday after the Nikkei newspaper in Japan reported that
SoftBank planned to break off
negotiations with Deutsche
Telekom. Sprint shares fell 9%
to $6.34, while T-Mobile
dropped 5.4% to $59.58 in
Monday afternoon trading.
Shares of Verizon Communications Inc. and AT&T Inc.,
the two biggest U.S. carriers,
slipped Monday, as investors
were hopeful the merger
would have reduced competi-
The Big Four of Wireless
Cumulative change in quarterly postpaid* wireless
subscribers since 2012
As of 3Q 2017
25 million
Verizon
20
+22.3
million
15
T-Mobile
+16.0
10
AT&T
5
+9.3
0
Sprint
–5
–2.3
–10
’12
’13
’14
’15
’16
’17
*Postpaid customers pay for service at the end of each month.
Source: the companies
THE WALL STREET JOURNAL.
tive pressures.
Sprint, which has a market
value of about $25 billion and
more than $30 billion in net
debt, has been losing money
for years and has had to leverage some of its network assets
to obtain cheaper loans. T-Mobile’s market value is about
$50 billion.
One complicating factor in
the talks is that Sprint shares
have slumped in recent weeks,
potentially hampering what
Sprint shareholders could expect to receive in the deal.
Instead of a merger, Sprint
plans to invest in its network,
said one of the people familiar
with the break-down in the
talks who is close to Sprint.
A decision to walk away
from the T-Mobile deal would
echo the last time the two
companies explored a merger,
in 2014. Sprint was poised to
acquire T-Mobile but scrapped
the plan after realizing regulators were sure to oppose it.
In the current discussions,
T-Mobile Chief Executive John
Legere was expected to run
the merged company, and
Deutsche Telekom wanted to
maintain effective control of
the carrier so it could include
its U.S. earnings in quarterly
reports, The Wall Street Journal has reported.
In this case, the SoftBank
board thought giving up so
much influence was unwise,
given Mr. Son’s belief that artificially intelligent robots and
other devices are a major
business opportunity and connectivity of those devices will
be critical, said people familiar
with the merger talks who
know about the thinking of the
SoftBank board.
While Mr. Son had agreed to
give up control in principle, he
had been looking for ways to
maintain some additional influence now or in the future, said
the people familiar with the
SoftBank board’s thinking.
Without a merger, Sprint
will need to ratchet up spending on its network because,
analysts say, they have spent
far less than their rivals. In recent months, some Sprint
managers have considered
scaling back major internal investments because T-Mobile
was expected to run the combined company, according to
Sprint employees.
If a deal had been reached,
its antitrust approval in Washington was far from assured.
Republican regulators under
the Trump administration are
thought to be more open to
consolidation that those in the
Obama years, but horizontal
mergers that eliminate a competitor, especially in already
concentrated markets, typically face significant scrutiny.
“Sprint needs this merger so
much more than T-Mobile
does,” Recon Analytics Inc. researcher Roger Entner said,
adding that if they come back to
it later, “T-Mobile and Deutsche
Telekom will in all likelihood be
in a stronger position."
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 31, 2017 | A9
Time to change
where you buy
business travel.
Exclusively for the “do-it-yourself” business traveler.
Great prices. Concierge-level service at no extra charge, 24/7.
You travel on business... to get business done.
But if you have no corporate travel department or support,
you’re on your own. You do it all yourself, every time.
You research lights, hotels and rental cars. Then you
compare prices, book everything. . . and maybe re-book
everything when your plans shift or bad weather hits.
It’s time to change. Our new service does it all for you.
We work directly for the do-it-yourself business traveler.
There are no fees or commitments, just great prices
with 24/7 concierge-level support at no extra charge.
You can save hours shopping for lights and rooms because
we do it for you in seconds. Choose whatever you need
and you’re done. You can pay even less if you buy air and
hotel together with our special package pricing.
Where we really shine is how we take care of you.
Our travel experts are easy to reach every minute of
your trip. Just one touch on our mobile app and you
are connected to real people, right away.
What’s more, we never rush you. You can call, chat or
email and we’ll stay with you until you’re fully satisied.
Canceled light? We ind alternatives. Bad weather?
We can help. Business travel is far less stressful when
someone has your back, day and night.
If you’re a do-it-yourself business
traveler, now you can buy your business
travel from the newspaper that has
been covering business for 128 years.
We’re making business travel better,
so you can get business done.
WSJB U S I N E S S T R AV E L . C O M
POWERED BY
Business Travel Service
The Wall Street Journal Business Travel Service is operated independently of the Journal's news department.
All international and domestic travel must start in the U.S. and all buyers must be U.S.-based.
Live expert customer
service, 24/7, on every
trip at no extra charge.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
A10 | Tuesday, October 31, 2017
Continued from Page One
cludes a dachshund, a greyhound, a wolf, a triceratops and
a tyrannosaurus rex. The retailer’s horse skeleton—which
sells for $199—stands 6 feet tall,
has 18 pairs of ribs just like a
real one and comes with a battery-powered speaker that emits
a hideous panting neigh. “I
didn’t want it to sound like it
was a pony you pet on a farm,”
Ms. Charles explained. “I
wanted it to sound like it was
chasing you.”
Oddly enough, the more
they love an animal, the more
inclined people are to exhibit
its bones. One of the leading
markets for Home Depot’s
horse skeletons, Ms. Charles
notes, is Kentucky—a state
that holds those animals in
high esteem. “It’s a symbol of
a dead animal, but I don’t
think people look at it that
way at all,” she says. “It’s an
extension of what they love.”
Martha Stewart, the global
home-decorating authority, set
up a pair of Home Depot horse
skeletons on her farm in Bedford, N.Y., for Halloween last
year. Her real horses shied away
as she rode past them, she said.
Her five dogs are also scared of
them. “The neigh is really
frightening,” she says.
GOOGLE
Continued from Page One
tempt to influence the 2016
presidential election.
For the past two decades,
Washington has taken a largely
hands-off role in regulating the
internet, helping winners such
as Google and Facebook Inc.
grow to spectacular size and influence. Today, the rise of populist movements in both parties
has forced a reckoning around
the concentration of economic
power in big businesses. Populist conservatives are particularly hostile to big tech, given
its size and pervasive influence,
as well as its support for immigration rights and other causes
that clash with their economic
nationalism.
“For the populist right, this
is a major, major issue of the
2018 election,” Mr. Bannon said
in an interview. “We’re going to
make it a big deal. I can already
tell it resonates.”
Washington hearings
Hearings on Tuesday and
Wednesday are scheduled in
Congress on the Russia issue, in
a rare public grilling of the tech
giants that could focus rising
concerns. Democratic senators
Mark Warner of Virginia and
Amy Klobuchar of Minnesota
have introduced a bill along
with Arizona Sen. John McCain,
a Republican, that would require
internet firms to disclose the financial backers of political ads
on the internet.
Google, which commented
only on specific policy issues,
said in a written statement: “We
support efforts to improve
transparency, enhance disclosures and reduce foreign abuse.
We’re evaluating steps we can
take on our own platforms and
will work closely with lawmakers, the [Federal Election Commission] and the industry to explore the best solutions.”
Google executives, including
general counsel Kent Walker,
met with Facebook and other
tech firms in northern California
earlier this month to map out
possible joint strategies to address worries raised by the
hearings, according to a person
familiar with the matter. Tech
executives were particularly
concerned that once-friendly
congressional Democrats were
suddenly criticizing them. No
clear solutions emerged from
the meeting, the person said.
Google’s rivals in old-line media companies are encouraging
this new scrutiny in Washington
and have in recent years dubbed
their effort “Project Goliath,” according to emails that were
hacked and posted online in
2014. Some companies have
criticized the way Google surfaces news stories, including
News Corp, owner of The Wall
Street Journal.
Telecom AT&T Inc. suggested
it might accept some legislation
that Google opposed, and lobbyists for software company Oracle Corp. held a series of briefings behind the scenes for
Capitol Hill aides and reporters
designed to show how much information Google’s Android
phones collect.
One of the primary reasons
for Google’s political muscle in
Washington has been its ability
Pet lovers are fueling the popularity of fake animal skeletons.
jota says. “A dead dog isn’t going to go anywhere, but a dog
with a loose leash might,” she
says.
Barb Emmett, owner of Godfrey’s-Welcome to Dogdom
store in Mohnton, Pa., has no in-
tention of selling dog skeletons
and didn’t use them as decorations at her store’s Howloween
Pawty on Saturday, which offered canine guests a costume
contest and homemade treats.
“I love dogs so much. They’re
all fur and living bodies,” says
Ms. Emmett. “I’m not a rest-inpeace kind of decorator.”
Sales of Halloween decorations at Grandin Road, a unit of
Cornerstone Brands Inc., are
now nearly equal to its Christmas décor, fueled in part by the
rising popularity of its animal
skeletons. It began selling a dog
skeleton in 2013 that quickly
sold out. “We feel we are ahead
of the trend and over the years
we’ve added more styles,” says
Kelly Lambert, Grandin Road’s
head merchant designer for Halloween.
Large animal skeletons are
especially popular, including a
dog that is 30 inches long, a bat
with a wingspan of nearly two
feet and a “Black Skeleton Spider” that stretches across 40
inches.
“This year we focused on giving our jeweled rat a more glam
and upscale look that’s great for
a party,” Ms. Lambert says. The
result is a hand-painted, jewelencrusted rat skeleton.
Not all of Grandin Road’s
skeletons are limited to Halloween. In July it introduced a $49
set of four small human skeletons holding yoga poses, which
sold out in a week. “A customer
who likes skulls would keep that
out year round,” Ms. Lambert
says.
The yoga skeleton at Michaels is a top seller, too, says
Ms. Farrajota. “It ties to the
wellness trend, Zen and serenity,” she says. “We’re already
planning more for next year.”
For consumers looking for
anatomical precision, healthcare-education product maker
Anatomical Worldwide sells real
animal skeletons including a
$1,123 dog and a $1,039 cat. So
far, the company hasn’t seen a
bump in these veterinary models around Halloween. “The average enthusiast probably isn’t
going to be interested in spending $8,000 on an actual horse
skeleton,” says Liz Huff, director
of operations.
But the company does see a
rise in sales each fall for its
$200 Budget Bucky, a 5-foot, 6inch-tall human skeleton cast
from an actual skeleton. It features removable arms and legs,
a movable jaw, three removable
lower teeth and full articulation
of every joint, including fingers
and toes.
“It has anatomical markings,
realism and proportions that
simply aren’t going to be part of
those skeletons at big-box retailers,” says Ms. Huff, who says
Bucky is used by amusement
parks and Hollywood special-effects designers as well as consumers wanting to upgrade Halloween decorations.
“Whether it’s a burned
corpse, zombie or something
suspended in ballistics jelly,
Bucky is a pretty amenable guy,”
she says.
Election Support
Employees of Google and
Alphabet, its parent, made
the company the top corporate
source of campaign donations to
Hillary Clinton's 2016 presidential
campaign, stepping up donations
from the Democratic candidate
in the previous two elections.
Hillary Clinton, 2016
Alphabet/Google*
$1.6million
million
$1.6
Microsoft
$904,000
Apple
$654,000
Morgan & Morgan
$628,000
SUSAN WALSH/ASSOCIATED PRESS
BONES
Ms. Stewart has collected
skeletons “for years” and scatters about 20 human ones outdoors each Halloween. She enjoys their versatility, lounging
them on patio chairs, crosslegged around light fixtures and
perched in trees with their arms
outstretched. Faux skeletons
with a creamy bone hue, intact
teeth and anatomical accuracy
are best, she says.
“I like the mouth a little bit
open,” she says.
Does Ms. Stewart worry
about frightening young trickor-treaters? Not really. “The
scarier the better.”
Michaels Cos., a crafts retailer, expanded its skeleton
merchandise over the past three
years at the expense of witches.
“Spooky has become more important than the more juvenile
parts of Halloween,” says Idalia
Farrajota, Michaels’ senior vice
president of merchandising and
trend.
Shoppers seeking scare factor buy rat and bat skeletons,
while pet lovers are most drawn
to dog and cat skeletons, says
Ms. Farrajota. She passed on cat
skeletons in “passive poses” in
favor of one that featured a few
broken ribs and a crouched
pose. “He’s a little aggressive,
isn’t he? He’s going to jump up
and get you,” she says.
A dangling black leash
around a dog skeleton’s neck
adds spookiness, too, Ms. Farra-
F. MARTIN RAMIN/ THE WALL STREET JOURNAL
IN DEPTH
J.P. Morgan Chase
$558,000
Barack Obama, 2012
Microsoft
$816,000
Google
$804,000
Kaiser Permanente
$593,000
Deloitte
$458,000
Time Warner
$448,000
Barack Obama, 2008
Goldman Sachs
$1 million
Microsoft
$855,000
J.P. Morgan Chase
$848,000
Google
$818,000
Citigroup
$755,000
*Alphabet was created in
a restructuring of Google in 2015.
Source: Center for Responsive Politics
THE WALL STREET JOURNAL.
to forge ties, particularly with
Democrats. After working
closely with the Obama administration to craft technology policy, Mr. Schmidt threw his full
support to Mrs. Clinton early in
the campaign.
“He’s ready to fund, advise,
recruit talent, etc.,” Clinton confidant John Podesta wrote in
April 2014, referring to Mr.
Schmidt, in a hacked email
posted online by WikiLeaks. Mr.
Schmidt “clearly wants to get
going,” Mr. Podesta said in the
email to Robby Mook, the campaign manager for Mrs. Clinton.
Mr. Schmidt personally
helped start companies that analyzed political data and did
other election work for Mrs.
Clinton. One, named The
Groundwork, was originally
based a few blocks from her
Brooklyn headquarters and
eventually was paid $700,000
by the Clinton campaign.
Since the election, Google
has tried to make more connections with the Republicans now
in charge. It contributed
$285,000 to Mr. Trump’s inauguration. It funded a party to
welcome back the Republicancontrolled Congress. Attending
the party, held at Washington’s
Smithsonian Arts and Industries
Building, were more than 70
members of Congress and other
officials, including political advisers to Mr. Trump.
Within days of the election,
Google posted a help wanted
notice for an employee in Wash-
Alphabet Executive Chairman Eric Schmidt, center, meeting with the Trump administration in June.
ington who could manage outreach to conservative organizations, and ultimately hired
someone from the staff of Sen.
Ted Cruz, the Texas Republican.
Overall, Alphabet has spent
$13.6 million on lobbying this
year as of the end of September,
compared with 2016’s full year
total of $15.4 million, according
to lobbying-disclosure records
compiled by the nonpartisan
Center for Responsive Politics.
Cumulatively over the past five
years, only Boeing Co. has spent
more on lobbying in Washington
than Google.
Even before Mr. Trump was
sworn in Jan. 20, Google faced
its first tough policy challenge
of the new era. During the transition, opponents of the company began pushing to install a
Google adversary, Utah Attorney
General Sean Reyes, as the new
chairman of the Federal Trade
Commission, which enforces antitrust laws.
In 2016, Mr. Reyes had called
for the FTC to reopen a closed
antitrust investigation into
Google—a major threat to the
firm, which controls more than
80% of the business for internet
search by some measures. Earlier this year, European officials
imposed a groundbreaking $2.7
billion antitrust fine on Google
for unfairly steering web
searchers to Google’s own shopping platforms.
Google responded to the
threat of potentially unfriendly
policies from Mr. Reyes by engaging a squadron of GOP lobbyists to press the incoming administration not to name him to
the position, according to several people familiar with the
matter. The lobbyists argued
that if Mr. Reyes were tapped,
the company would flex its muscles in the Senate to block his
confirmation.
“Google plays hardball beyond what most companies are
willing to do,” said Jon Bruning,
the former Nebraska attorney
general. Google’s effort helped
keep Mr. Reyes from being nominated, according to people familiar with the matter.
President Trump recently
named another candidate for
the job, seasoned antitrust lawyer Joseph Simons, a former
FTC competition official under
George W. Bush.
“We’re looking forward to
collaborating with Chairman-
nominee Simons…on a range of
important issues that matter
most to consumers, including
combating online fraud, staying
safe online, and fighting scams
that impact our users,” a Google
spokeswoman said.
A new challenge emerged
over consumer privacy—key for
a company that makes the bulk
of its money selling targeted ads
based on data they collect about
consumers’ online behavior.
The Obama-era Federal Communications Commission in late
2016 created rules that tightened consumer-privacy rules for
cable and wireless companies
such as AT&T and Comcast
Corp., which provide internet
connections and are trying to
challenge Google’s dominance in
online advertising.
The FCC rules gave internet
firms such as Google or Facebook, which operate under the
generally friendlier rules of the
FTC, a potentially huge advantage over telecoms, in the view
of many experts.
In March, Republicans in
Congress rolled back the FCC’s
2016 privacy rules. Online activists, which congressional Republicans viewed as allies with internet firms, protested.
Within weeks, Rep. Marsha
Blackburn (R., Tenn.), who
chairs a House subcommittee
with jurisdiction over the internet, proposed new legislation
that would effectively reimpose
the Obama-era privacy rules,
but on all the firms, including
Google.
Lobbying blitz
Google launched an all-out
lobbying blitz to block Ms.
Blackburn’s legislation. “The act
undermines the business models
of all companies that provide
online services and threatens
the widespread availability of
free services that provide enormous benefits to Americans,”
Google said in talking points
distributed to conservative allies. The bill so far hasn’t been
scheduled for a vote.
On Friday, the Republican
chairman of the House Energy
and Commerce Committee, Rep.
Greg Walden of Oregon, raised
questions about consumer privacy and the business practices
of tech companies, including
Google. He said he plans a series
of hearings that are “just the
start” of an effort to “illuminate
how Americans’ data is being
used online, how to ensure that
data is safe, and how information is being filtered to consumers over the web.”
A similar battle has been
playing out over tech-friendly
rules from the Obama era on
net neutrality. The net neutrality regime could benefit Google
and other internet companies at
the expense of AT&T and firms
in the telecommunications industry, which generally own the
networks that support the inter-
Mr. Schmidt threw
his full support to
Hillary Clinton early
in the 2016 campaign.
net. The rules require the owners of the systems to treat all
internet traffic the same, without blocking, throttling or
charging for faster speeds. Telecom companies have argued the
rules were a government overreach that could choke off investment in networks.
Once Mr. Trump took office,
the FCC started the process of
rolling back those rules.
Google and internet firms or-
Top Spender
Alphabet is among the companies
spending the most on lobbying in
Washington.
$18 million
16
14
12
10
8
6
4
2
0
2005 ’07 ’09
’11
’13 ’15 ’17*
*As of Sept. 29
Source: Center for Responsive Politics
THE WALL STREET JOURNAL.
ganized a “day of action” for
July, in which websites would
post information about unfriendly policies and call on users to contact Congress.
Before the planned day of action, aides to Speaker Paul
Ryan, Republican Leader Kevin
McCarthy and other Republicans met with officials from
Google, Facebook, Amazon.com
Inc. and other tech representatives. During the generally
friendly meeting, a Ryan aide issued a polite warning: If the internet
companies
carried
through with their protest, it
could endanger relationships
with Republicans in Congress
and other legislative priorities,
according to people familiar
with the meeting. Among the
bills mentioned at the meeting
was Ms. Blackburn’s privacy bill,
according to the people.
The day of action went ahead
but had little impact on GOP
lawmakers’ plans. Some activists said participation by big
tech firms appeared muted.
Perhaps the most emotionally charged issue to haunt
Google involves online sex trafficking. Google and other internet firms have broad immunity
under federal law from many
types of lawsuits over items
that other people post on their
platforms—even advertisements
that offer children for sex.
In May, Republican Sen. Rob
Portman of Ohio teamed up
with Democratic Sen. Richard
Blumenthal of Connecticut to
work on a measure that would
curb the immunity when it
comes to sex trafficking. The bill
would allow victims to hold internet companies liable for such
content on their platforms in
some circumstances.
Google officials, worried any
carve out from the immunity
law would open the door to
more exceptions and lead to a
rash of frivolous lawsuits,
sought to get Mr. Portman to
back off his legislation. The
company dispatched a lobbyist
who used to work for Mr. Portman to meet with the senator’s
chief of staff.
At the meeting, on July 19, a
Google lobbyist told the Portman chief of staff the company
opposed the legislation and
would defeat it, according to
lobbyists who spoke to the Portman aide about the meeting.
The Portman aide countered
that Google could hurt its reputation by opposing it. The
Google lobbyist said Mr. Portman would be seen as a villain
trying to regulate the internet.
The meeting left a bad taste, Mr.
Portman’s chief of staff later
told the lobbyists.
Messrs. Portman and Blumenthal introduced the bill the
next month with more than 20
co-sponsors. A spokesman for
Mr. Portman’s office didn’t comment on the meeting and said
he was confident that the Senate would pass the bill.
More recently, Google has
changed its strategy. Susan Molinari, Google’s vice president
for public policy, said recently in
a blog post that Google has “a
long standing commitment to
eradicating human trafficking.”
She said it had proposed
amendments to Mr. Portman’s
legislation that would give victims and survivors the right to
civil litigation and enable prosecutors to hold bad actors accountable for their crimes.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 31, 2017 | A10A
NY
* *
GREATER NEW YORK
Detectives
Indicted
In Alleged
Teen Rape
Building Boom for Private Schools
BY THOMAS MACMILLAN
BY LESLIE BRODY
Two New York City Police
Department detectives were
indicted Monday on charges of
raping a handcuffed 18-yearold woman in a police van after arresting her, the Brooklyn
district attorney’s office announced Monday.
The 50-count indictment
against Detectives Eddie Martins, 37 years old, and Richard
Hall, 32, included charges of
first-degree rape and kidnapping, coercion, official misconduct, and receiving a bribe.
Detectives Martins and Hall
pleaded not guilty in Brooklyn
Supreme Court, and were held
on $250,000 and $150,000 bail,
respectively. They were placed
on unpaid leave from the NYPD.
“We absolutely deny and will
vigorously contest any set of
charges that are based upon a
claim that there was any kind of
forcible sex act committed,” said
Mark Bederow, Detective Martins’s attorney. Detective Hall’s
lawyer couldn’t be reached.
The detectives arrested the
woman last month after allegedly finding drugs in the car
she was driving. Detective
Martins told her they were
“freaks” and asked her what
she was willing to do to be released, according to prosecutors. They put her in their van
and took turns forcing her to
perform sex acts before releasing her with a warning to keep
quiet, prosecutors alleged.
Surveillance video shows the
woman exiting the van at
about 8:42 p.m. Investigators
later recovered DNA matching
the two detectives from the victim, according to prosecutors.
“It is incomprehensible that two
veteran NYPD detectives would
allegedly commit such an outrageous act,” acting District Attorney Eric Gonzalez said.
Private K-12 schools have
been on a billion-dollar building
spree in New York City during
the past four years, adding
gleaming towers, theaters, gyms
and swimming pools.
Many of these projects are
long overdue expansions or upgrades to century-old buildings
that were overcrowded, parents
and school officials say. They
see the changes as key to their
educational missions. Skeptics
see some of the makeovers,
however, as part of an arms race
for amenities as schools compete for students. And neighbors complain about noise, traffic and grime from construction.
Low financing rates for
projects, growing enrollment
at some elite schools, and
strong fundraising by increasingly wealthy parents spurred
the boom.
“People at the top end [of
incomes] have resources that
they never had before. They
are very generous and share it
with us,” says George Davison,
head of Grace Church School
in Manhattan, which is adding
a $15 million gym.
Construction and renovation starts for private K-12
schools in New York City, including religious ones, totaled
more than $948 million from
January 2014 through September, according to Dodge Data &
Analytics, a construction-industry research and software
firm. That climbed from a total of $377 million for the four
years ending in 2007, in dollars not adjusted for inflation.
Amy Poeppel, a recent private-school parent and author
of “Small Admissions,” a novel
based on her time working in a
private-school admissions office, says teacher talent and students’ attitudes are more im-
YANA PASKOVA FOR THE WALL STREET JOURNAL
Officials say upgrades
are key to missions;
skeptics see it as an
amenities arms race
A 12-story building under construction is expected to solve ‘chronic space needs’ for Brearley.
Construction Irks
Some Neighbors
Bonnie Carlson, a 73-yearold who lives next door to
Chapin on the Upper East Side,
says she wants to sell her
fourth-floor walk-up but can’t
with all the commotion from
the school’s construction, which
is expected to last about three
more years. Her husband has
had ankle and knee surgeries,
“but a real-estate agent told us
we have to hold on to it until
2021,” she says.
Ms. Carlson is among the
neighbors frustrated by noisy
construction at the K-12 institution, sometimes six days a
week. School officials say the
project started in spring of
2015.
In tightly packed New York
City, the main way for some
private schools to grow is up.
Chapin, which is expanding its
building from eight floors to 11
floors, is among those undertaking the task while students
attend classes.
At a meeting this month—
one of many Chapin has held
with the community—a dozen
neighbors peppered the contractor with questions about street
closures, parking changes and
safety.
M.J. Quigley, associate head
of Chapin, said its leaders sympathized and sought to be responsive as they forged ahead
with an expansion they see as
key to fulfilling the 116-year-old
school’s academic mission.
“It’s important to keep those
lines of communication open,”
she says. “This is their home.”
The growing school, which
serves 783 girls, has added an
average of 12 students a year
for a decade, Ms. Quigley notes.
She says Chapin tries to be
a good neighbor by hosting
events for community organizations and encouraging students
to volunteer at local nonprofits,
among other things.
portant than campus amenities,
but many parents see an upscale
environment as a sign of quality.
“They think if you can afford a
bigger building it must say
something about you as an institution,” she notes. “Shiny
spaces matter to New Yorkers.”
Some private-school leaders
dispute the notion that they
are competing by bolstering
amenities, noting this is unnecessary because they have
so many applicants.
Instead, they say they are updating facilities to make room
for new technologies and teaching styles, which require flexible
spaces for group projects, interdisciplinary work and hands-on
learning. In their view, traditional classrooms with rows of
desks no longer suffice.
In Friends Seminary’s expansion, for example, there will be
more open areas where stu-
dents can build robots. “There is
not a sense of keeping up with
the Joneses, it’s more keeping
up with the Einsteins,” says
principal Robert “Bo” Lauder.
The school in Manhattan’s
Gramercy Park neighborhood is
spending $70 million to gut
three townhouses, connect
them to a main building, add
floors and create a greenhouse.
“I believe environment impacts
education greatly,” Mr. Lauder
says. “It can lift the spirits of
teachers and enhance the experience for children.”
Independent schools with
major capital projects under
way or recently completed include Ethical Culture Fieldston, Saint Ann’s, Saint David’s, Horace Mann, Riverdale
Country School, Trevor Day
School and Trinity.
The sprawling New York
City public school system also
spends heavily on construction. The city’s five-year capital plan through 2019 includes
$6 billion to add 49,200 seats
and prekindergarten programs, in addition to $6 billion for upgrades and repairs.
Critics contend that isn’t
enough to reduce overcrowding in a system of 1.1 million
students where, by the city’s
count, 59% of roughly 1,800
public schools exceed capacity.
Meanwhile, giant cranes
hover at East End Avenue as
Brearley puts up a 12-story
building expected to cost $85
million. Expansion will solve
“chronic space needs” and
modernize a school that hasn’t
had a facilities project since
1995, Brearley officials say. A
block away, Chapin estimates
it will cost about $135 million
to add three floors, with a regulation-sized gym. This fall
Dalton announced a $100-million campaign that includes
adding two floors to its 89th
Street site, a teaching kitchen,
greenhouse and center for interdisciplinary programs in
sciences and the arts.
Some fundraisers say drumming up gifts for capital projects, which promise plaques
with donors’ names, can be easier than raising money for annual funds or endowments.
Collegiate, which lost its
space on church property on
the Upper West Side, expects to
move January to its new 9story building about a mile
away and 32% bigger. Reports
estimated the new site would
cost $125 million to $135 million. School officials didn’t return calls for comment.
San Francisco Tops New York City in Michelin Guide
When it comes to fine dining, New York City is taking a
back seat to San Francisco—at
least by one measure.
For the first time, the Big
Apple has fewer restaurants
with the coveted threestar Michelin Guide rating
than the California coastal
city. Michelin announced its
2018 New York star selections on Monday, almost a
week after revealing the same
for San Francisco.
Michelin awarded three
stars—its highest ranking—to
five restaurants in New York
City: Chef’s Table at Brooklyn
Fare, Eleven Madison Park, Le
Bernardin, Masa and Per Se.
The guide recognized
seven San Francisco-area restaurants with the same
honor: Benu, Coi, the French
Laundry, Manresa, Quince,
the Restaurant at Meadowood and Saison.
While the difference might
seem
slight,
the
Michelin ratings are considered
an important denominator,
especially in the upper echelon of dining, where multicourse meals that easily run
$200-plus per person are the
norm.
New York City always has
been considered a global
leader in this rarefied realm.
But San Francisco has made
Star Competition
A look at how select cities
compare by number of dining
spots that have earned the
Michelin Guide’s top rating.
u Nara (Japan): 14
u Tokyo: 13
u Paris: 10
u Hong Kong/Macau: 8
u San Francisco: 7
u New York: 5
u Chicago: 2
Source: Michelin
considerable headway over the
years.
Restaurant-industry insiders note that the farm-to-table movement, one of the
most significant culinary
trends of the past decade, got
its true start on the West
Coast.
Still, Michelin Guide international director Michael Ellis
played down the fact that San
Francisco now tops New York
City, noting that three-star establishments represent a sliver
of the restaurant scene.
GARY HE
BY CHARLES PASSY
Eleven Madison Park was among five New York City restaurants awarded the coveted 2018 three-star Michelin Guide rating.
Mr. Ellis pointed out that
considering
the
number
of Michelin-starred restaurants overall—establishments
with anything from a one to
three-star rating—New York
City has a considerable edge,
with 72 compared with San
Francisco’s 55.
“That’s arguably more a reflection of the state of dining
in the two cities,” Mr. Ellis
said.
The 2018 first-time Michelin honorees in New York
City include: Rouge Tomate in
Chelsea, Sushi Amane in Midtown East and the Clocktower
in the Flatiron District. All
three received a single star.
Arlene Spiegel, a restaurant-industry consultant based
in New York, said that while
the Michelin ratings may carry
a certain weight, especially
with deep-pocketed tourists,
most diners in the city consider online resources when
deciding where to eat.
“The bottom line is they’re
going to look on Yelp,” she
said.
OYSTER PERPETUAL
cosmograph daytona
rolex
oyster perpetual, cosmograph and daytona
are ® trademarks.
A10B | Tuesday, October 31, 2017
NY
* *
THE WALL STREET JOURNAL.
GREATER NEW YORK
The world’s first
zero-crease carry-on
SAVE
$50
Code VOC50
T. CHARLES ERICKSON
Unlike current luggage systems that fold your suit up to three times and
create creases along the way, VOCIER’s patented zero-crease system
keeps your suits pristine and completely wrinkle-free. All aspects of the
suitcase are designed to make life easy for busy professionals.
Start your smooth travels now.
Joey Slotnick, center, and castmates in Ayad Akhtar’s play ‘Junk’ at Lincoln Center Theater.
Audiences Are Investing
In ’80s Wall Street Drama
BY CHARLES PASSY
“Anyone who flies frequently will see why this new
carry-on is a sensation”
Jury German Design Award
VOCIER.com
Will Lincoln Center Theater
find gold in junk?
The nonprofit company’s
production of Ayad Akhtar’s
“Junk,” a play that looks at
Wall Street’s junk-bond era of
three decades ago, has sold
nearly $1.9 million in tickets
through its first four weeks in
previews, according to the
Broadway League, a trade
group. The show is slated to
open Thursday night.
The sales so far represent
about 52% of the production’s
potential gross. A Lincoln Center Theater spokesman noted,
however, the company offers
its members tickets at a discount from the standard
prices.
The spokesman added that
the company has been pleased
with the response to date, es-
Founders Keepers asked Niraj Shah, co-founder/CEO of Wayfair
Who has been
your pivotal hire?
Kate Gulliver
! VP, Head of Global Talent
Films have repeatedly
mined the financial
world, but theater has
shown less interest.
buzz from a run at California’s
La Jolla Playhouse. A reviewer
for the Los Angeles Times
praised it as a “thrilling” look
at the financial sector, calling
it “part Shakespearean history
play, part ‘The Big Short.’ ”
Additionally, Mr. Akhtar is
City Pledges $8 Million
To Curb School Bullying
BY LESLIE BRODY
PAID ADVERTISEMENT
pecially the size of the audiences. Last week, for example,
the show played to 92% of its
capacity, topping any other
drama on Broadway.
“Junk” comes to New York
having garnered considerable
In the wake of the deadly
stabbing of a teenager in a
Bronx public school, the New
York City Department of Education said Monday it would
invest $8 million in additional
steps to prevent bullying.
The department said it
would open a new online portal for families to report bullying in 2019, and those filing
complaints would be informed
of the outcomes of investigations within 10 school days.
A department spokeswoman said it would take
more than a year to build a
new portal that integrates
with the agency’s systems.
The city also will boost
staff training and community
workshops to prevent bullying,
and require schools to develop
action plans to help individual
students who are bullied, including offering transfers to
new schools for safety. Skeptics
said the agency should do more
to enforce anti-bias policies
that have long been in place.
These measures come after
18-year-old Abel Cedeño was
indicted on manslaughter
charges in the Sept. 27 stabbing
death of a 15-year-old classmate
at the Urban Assembly School
for Wildlife Conservation.
Mr. Cedeño’s lawyer, Christopher Lynn, said Monday his
client, who is gay, had suffered
years of bullying at school.
“We’re saying he is not
guilty because it was self-defense, two people attacked
him in the classroom,” Mr.
Lynn said.
"
# February 2014
$ %
Founders Keepers: & # ' (
NS: )% *# +,-. / & +,-0 ' 1 2
Founders Keepers: % # (
NS: )% /34
5 # 5
2 0,,, -,,,,66 #
% #
738 9 &8 :%# ; <
9& 3 5
1 = >#
MBA Harvard
A new
way,
a better
way
Founders Keepers to buy a wedding suit.
a Pulitzer Prize winner for
“Disgraced,” a drama that
Lincoln Center presented five
years ago in its New York debut.
Of further note: Lincoln
Center is coming off winning
the Tony Awards’ Best Play
honor last season for its production of J.T. Rogers’s “Oslo.”
That show grossed $10.8 million over 17 weeks.
While the film world has
repeatedly turned to the financial sphere as a source of subject matter, with such pictures
as “Wall Street” and “The Big
Short,” the theater community
has shown less interest.
Before “Junk,” there have
been just a handful of noteworthy plays in the last few
decades to examine the subject. One of the more recent,
“Enron,” closed after a monthlong run on Broadway in 2010.
GREATER NEW
YORK WATCH
SUFFOLK COUNTY
State Asked to Probe
DA’s Bonus Payments
Suffolk County Executive
Steve Bellone is asking state officials to examine whether bonuses given by the local district
attorney’s office to its prosecutors were legal.
“These bonuses were not authorized by the county legislature pursuant to any legal process or authority that I am
aware of,” Mr. Bellone said in a
Monday letter to New York
state Comptroller Thomas DiNapoli. A spokeswoman for Mr.
DiNapoli said the comptroller’s
office is reviewing the request.
The office of Suffolk County
District Attorney Thomas Spota
paid out bonuses totaling $2.7
million from 2012 to 2017, according to county budget documents. Mr. Spota last week said
he would resign after he was indicted on federal obstruction of
justice charges.
Mr. Spota said he didn’t need
approval because the district attorney’s office reimbursed the
county for the payments from a
fund of assets seized during
criminal investigations.
Federal prosecutors allege
that Mr. Spota attempted to
cover up the assault of a handcuffed suspect by former Suffolk
County Police Chief James
Burke. He has pleaded not guilty.
—Joseph De Avila
MENENDEZ CASE
Defense Rests
In Senator’s Trial
The defense in the bribery
trial of U.S. Sen. Bob Menendez
rested its case Monday, shortly
after the judge turned down a
bid to have a mistrial declared
over his rulings during the trial.
Neither the Democratic senator from New Jersey nor co-defendant Salomon Melgen, a Florida eye doctor, testified during
the trial. Closing arguments are
expected later this week after
the judge and attorneys settle
on instructions for the jury.
An indictment charges Mr.
Menendez and Dr. Melgen with
a long-running bribery scheme in
which Mr. Menendez allegedly
traded political influence for gifts
including flights on Dr. Melgen’s
private jet between the U.S. and
Dr. Melgen’s home at a Dominican Republic resort. Both men
have said the gifts were an expression of their longtime friendship, and that there was no bribery arrangement.
—Associated Press
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 31, 2017 | A11
LIFE&ARTS
EXERCISE
The Army’s Radical Fitness Shift
A new test would change how the military measures soldiers, with no adjustments for age or gender; a bellwether for civilians
Fort Leonard Wood, Mo.
THE U.S. ARMY’S physical-fitness test could get more physical
soon.
A proposed overhaul of the
Army’s decades-old test includes a
barbell lift, a sprint with 40pound kettlebells and a brutal new
style of push-up. The test would
be a dramatic shift for the Army, a
longtime bellwether of civilian
health and fitness. The exercises
in the proposed test are more
challenging but the Army hasn’t
yet set the passing standards.
The proposed six-event test
known as the Army Combat Readiness Test, or ACRT, aims to encourage more practical physical
training and prevent injury in a
force frequently deployed around
the world. It also reflects a U.S.
military where all combat jobs are
now open to women: The proposed test would have one set of
passing standards, with no adjustments for age or gender.
“When you look at fitness,
we’re having some challenges
right now,” says Maj. Gen. Malcolm Frost, commanding general
of the U.S. Army Center for Initial
Military Training. Tens of thousands of soldiers aren’t deployable because of injuries, many
caused by poor physical fitness,
Army leaders say.
The current test—timed pushups, sit-ups and a two-mile run—
has existed since 1980, when aerobic exercise was booming and
many Cold War-era leaders
thought ground combat was obsolete. The proposed test is 80% predictive of whether a soldier can
complete tasks necessary for combat, Army officials say. The existing test, which soldiers take twice
yearly, is about 40% predictive.
On a recent day at Fort Leonard Wood, dozens of soldiers assembled for a pilot test, one of a
series held at Army bases. As
early-morning darkness surrounded a lighted field, soldiers
formed lines behind a row of barbells loaded with weights ascending from 125 pounds to 425
pounds. Each soldier picked a
weight and performed three dead
lifts.
The second event was a reverse
throw of a 10-pound ball, measured for distance. The seemingly
awkward motion serves a purpose: It mimics a boosting move
that’s “exactly how we get people
into buildings,” says Col. Dale
Snider. The 49-year-old has been
deployed four times to combat
zones.
The proposed new push-up requires lowering all the way to the
ground and extending one’s arms
in a T between repetitions. The T
push-up is easier to monitor in
testing, Army leaders say. Col.
Snider says he managed 50 T
WHITNEY CURTIS FOR THE WALL STREET JOURNAL
BY RACHEL BACHMAN
A HEAVY NEW LIFT: Staff Sgt. Rebecca Alvarez, above, performs a dead lift during a pilot of the Army Combat
Readiness Test. Other components of the proposed test: a two-mile run, below left, a leg tuck, below right, and the
250-meter shuttle sprint-drag-carry, bottom, which includes pulling a 90-pound sled for 50 meters.
push-ups in two minutes “and I was completely destroyed.”
He had done 84 regular push-ups while
taking the Army’s current fitness test a few
weeks earlier, he says.
The 250-meter shuttle event requires alternately sprinting,
dragging a 90-pound
sled and carrying two
40-pound kettlebells.
Staff Sgt. Kyle Place,
one of many drill sergeants taking the pilot
test, says he felt like a
baby giraffe after the sled pull. “I
definitely wasn’t anticipating that
level of muscle fatigue,” he says.
The leg tuck, the fifth event in
the proposed test, requires lifting
knees or thighs to elbows while
hanging from a pull-up bar. Some
soldiers struggled to do more
than a handful of reps.
The proposed test
ends with a timed
two-mile run, the only
event identical to one
in the current test.
Staff Sgt. Jenna
McKinney, who took
the recent pilot test,
says events like the
sled pull would make
the proposed test an
easier sell than the
current test to soldiers
under her command.
“It’s nice to be able
to tell them: Imagine
carrying your battle
buddy downrange,” she says, using the Army term for being deployed overseas.
About 182,000 soldiers are
serving in domestic operations or
in more than 100 countries worldwide, including the 16-year conflict in Afghanistan, Army officials
say.
A universal testing standard
will help legitimize women’s position in combat, Staff Sgt. McKinney says. All U.S. military jobs
were opened to women in 2015.
“There is no difference in the
modern battlefield on age or gender,” says Michael McGurk, director of research and analysis for
the U.S. Army Center for Initial
Military Training. “A mountain is
the same height for everybody.”
He compared scores from the
proposed fitness test to an academic class. D is a passing grade,
but students need higher marks
for scholarships or promotions. A
gender-neutral fitness screening
test for Army recruits that
launched earlier this year hasn’t
changed the share of women enlisting, Mr. McGurk says.
Jim Peterson, a former professor of physical education at the
U.S. Military Academy at West
Point, says the test could discriminate against women and cause injuries to male and female soldiers.
Dr. Peterson also says the dead
lift is a particularly risky exercise
if not performed correctly.
“The argument against it is so
compelling, versus the very limited argument for it,” he says.
Mr. McGurk says there have
been no reported injuries among
the 1,000 soldiers who’ve participated in pilot testing and that all
would receive training in proper
technique before taking the test.
Change could come as soon as
2018. If adopted, the ACRT would
complement or replace the current fitness test in the next few
years. The proposed test is part of
a move toward a more comprehensive approach to training and
maintaining the Army’s 1 million
soldiers. It comes amid high demands on the Army world-wide, a
shrinking pool of people eligible
for military service and a shift in
the civilian fitness industry toward free-weight and functional
training.
About 17% of Army soldiers are
classified as obese, according to a
2016 Army report. That’s half the
rate among U.S. adults overall, but
up from 13% a year earlier.
The Army is working on installing training centers stocked with
relevant exercise equipment and
staffed with experts in fitness, nutrition and performance, Maj. Gen.
Frost says.
The goal is to prepare and
maintain soldiers’ bodies as systematically as the Army does its
Humvees and helicopters.
“You might say, ‘Why haven’t
you done that before?’ ” Maj. Gen.
Frost says. “Because we know a
lot more about health and fitness.
We’ve learned a lot, so we kind of
need to rethink this holistically.”
YOUR HEALTH | By Sumathi Reddy
ROBOT-ASSISTED SURGERIES—a technology oft-touted by hospitals—are longer and
more expensive than other types of minimally invasive surgeries, according to a
growing body of studies. And in some types
of surgery, they have a lower success rate.
Two studies published online last week in
JAMA compared robotic-assisted surgeries to
laparoscopic surgeries. Both are minimally
invasive procedures done through
small incisions, designed to avoid
the large incisions made in
open surgeries, which often
result in more pain and complications.
“The robot is essentially
just a surgical tool,” says
David Jayne, a consulting
surgeon at Leeds Teaching
Hospital, a National Health
Service hospital in England
and lead author of one of the
JAMA studies. “The operation is
exactly the same as the laparoscopic
operation. So there’s always been a big question mark about whether it’s going to result
in any different outcomes.”
In laparoscopy, a tiny camera and surgical
instruments are inserted through small incisions. In robotic-assisted surgery, the sur-
geon operates a console that controls robotic arms attached to surgical instruments
and a camera, while looking through a
viewer that provides a three-dimensional
view of the patient’s anatomy.
In Dr. Jayne’s study, researchers compared the robotic-assisted and laparoscopic
surgeries among 471 rectal cancer patients
undergoing a resection, or removal of part
of the rectum.
The researchers looked at the
rate of conversion—when a
minimally-invasive surgery
must convert to open surgery—expecting robotic-assisted surgeries to have half
the conversion rate as the
laparoscopic ones. But they
found no statistically significant difference in the conversion rates.
They also found that roboticassisted surgeries were about 35
minutes longer and cost about £1,000
more, or over $1,300.
In the other study, researchers compared
robotic-assisted and laparoscopic surgeries
for kidney removal, usually done in cancer
patients.
They reviewed 13 years of data and found
FROM LEFT: INTUITIVE SURGICAL; UIG/GETTY IMAGES
THE COST OF USING
ROBOTS IN SURGERY
Robot-assisted surgeries have become increasingly common since the FDA approved Intuitive
Surgical’s system in 2000. Above, surgeons perform a hysterectomy using the device.
that the percentage of radical nephrectomies performed with robotic assistance increased to 27% in 2015, when there were
862 procedures, from 1.5% in 2003.
They also found the robotic surgeries exceeded four hours 46% of the time, compared with 26% of the time for the laparoscopic procedures, says Benjamin Chung,
associate professor of urology at Stanford
University School of Medicine and senior
author on the study. The longer operating
time results in a greater cost, as does an extra $985 per surgery for robotic instrumentation supplies.
The incidence of complications and
length of hospital stay were equivalent for
the two techniques.
Robotic-assisted surgeries began after the
U.S. Food and Drug Administration in 2000
approved the da Vinci surgical system made
by Intuitive Surgical Inc. of Sunnyvale, Calif. It
Please see HEALTH page A12
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.
A12 | Tuesday, October 31, 2017
LIFE & ARTS
BURNING QUESTION | By Heidi Mitchell
How to Tell If You Are
Addicted to Caffeine
drip coffee has anywhere from 107
mg to 420 mg, she says.
For the big energy drinker who
wants to cut back, she recommends a slow wean, not cold turkey. That is because if you just
quit, Days Two and Three can be a
misery of withdrawal, and can
even include vomiting and nausea.
“But it’s temporary,” Dr. Juliano
says. “Most people are past the
worst withdrawal symptoms three
days after the last dose. After nine
days, it should resolve.”
To avoid the worst, “We suggest
you cut your caffeine consumption
in half each week,” she says. In a
month, the withdrawal should be
more tolerable. She continues to
work with patients to keep them
off anxiety-inducing caffeine, since
preventing a relapse can be harder
than quitting.
other recreational drugs,” Dr. Juliano says. That in itself isn’t necessarily a problem. She is more concerned with psychological
addiction, also referred to as caffeine use disorder in the “DSM,”
when a person is physically dependent and uses the drug to avoid
withdrawal, has tried to quit but
cannot, and continues to use caffeine despite physical or psychological problems. One example, she
says, would be using caffeine despite having trouble sleeping.
Signs of Addiction
Many people don’t know they are
dependent until they stop consuming their go-to drink on vacation or
before a medical procedure. “Since
caffeine is embedded in our routines and social customs, people can
go 20 years without missing a day
and they don’t know they are dependent,” says Dr. Juliano. “One of
my patients was drinking 20 cups
of coffee a day and experiencing a
great deal of anxiety until he cut
back,” she says. “Sometimes people
get caught off-guard, and they think
they have the flu, or the worst
headache of their life.” She has
even heard of someone who
thought he was having a brain aneurysm.
This Is Your Brain on Caffeine
When you ingest caffeine, it occupies the brain’s adenosine receptors, whose job is to tell the body
it’s sleepy. By blocking that neuromodulator, the caffeine makes you
feel alert. There is also evidence
that caffeine stimulates the reward
center of the brain.
“So the brain says, ‘This feels
good. How can I do this again?’”
Dr. Juliano says. Because your body
has made adjustments to adenosine
production, when the caffeine is
taken away or wears off, you may
experience fatigue, headaches,
mood disturbances, even nausea.
This is physical addiction in a nutshell: The body has adjusted for
the drug, requiring increasingly
more of it to get that buzz and
stave off withdrawal symptoms.
“Regular users will choose to
take caffeine over money, over a
placebo—so it shares the same reinforcing qualities that we see in
UIG/GETTY IMAGES
WITH PUMPKIN-SPICE latte season in full swing, many Americans
may be finding themselves waiting
in line for coffee more than usual.
While a cup of joe undoubtedly can
give a jolt of focus to a fuzzy morning, it also has real side effects.
Caffeine use disorder was added to
the most recent edition of “The Diagnostic and Statistical Manual of
Mental Disorders” as a condition
for further study, and caffeine is
the most-used drug in the world.
What are the signs that you’re
addicted, and how can you kick the
habit? One expert, Laura Juliano, a
psychology professor at American
University who specializes in addiction, spills the beans.
A console controls robotic arms attached to surgical instruments.
HEALTH
Continued from page A11
is the only manufacturer of the
device, but several competing
products are in the works, with
one approved last week.
In an email, an Intuitive
spokesperson says it has installed more than 4,100 systems
world-wide and more than four
million procedures have been
performed using it. Hospitals often advertise their use of the $2
million systems.
Elizabeth Raskin, a colon and
rectal surgeon at Loma Linda
University in Loma Linda, Calif.,
says the study doesn’t effectively
highlight the cases in which the
robotic system has its most pronounced advantages, such as
when patients are obese, have a
narrow pelvis or have had multiple prior operations. She is paid
by Intuitive to teach the system
to other surgeons.
“The equipment actually allows surgeons to do things that
are exceptionally more difficult
with laparoscopy,” says Dr.
Raskin, who says she performs
most resection surgeries using
the robot system.
Patricio Gargollo, a pediatric
urologist and surgeon at Mayo
Clinic in Rochester, says the concerns are even greater in some
pediatric robotic-assisted surgeries, because longer procedures
mean children are under general
anesthesia for a longer period.
The impact of general anesthesia on young children’s developing brain is a continuing area of
research. Last year the U.S. Food
and Drug Administration issued a
warning for the repeated or
lengthy use of general anesthesia
in children under 3 years old.
Dr. Gargollo says that for some
pediatric surgeries there is a
benefit to robotic-assisted surgeries, such as when fixing kidney blockages.
But he and others have published data showing higher complication rates and lower success
rates for robotic-assisted ureteral
reimplants in children compared
with the open-surgery method.
The fairly common condition—
affecting about 10% of children—is
a complication from a urinary
tract infection in which urine goes
back up into the kidneys. The condition is sometimes treated with
Worth the Suffering?
Dr. Juliano herself drinks coffee
daily, just like more than 50% of
Americans, according to the National Coffee Association. She
doesn’t think most people have a
psychological addiction, but she
does offer a checklist to see if going without caffeine is worth the
pain of withdrawal.
She suggests checking in regularly with yourself, asking how your
general health is, how you’re sleeping and how your anxiety levels are.
“In our society, we have many
people who suffer from anxiety
and sleep problems, and they
should consider giving themselves
some relief from caffeine and seeing if that helps,” she says. Added
bonus: all that money saved on
cappuccinos and energy drinks.
Kicking the Habit
GETTY IMAGES/ISTOCKPHOTO
While studies have shown that as
little as 100 mg of caffeine a day
can result in physical dependence,
Dr. Juliano believes that having
less than 400 milligrams of caffeine day should be fine for most
healthy adults, unless they are
pregnant or have certain medical
issues. A typical 12 oz. serving of
Weather
d
Edmonton
40s
Vancouver
Vancou
<0
20s
30s
Bismarckk
30s
40s
Boise
i
60s
70s
Reno
ux FFalls
ll
Sioux
40s
50s
San
an Francisco
i
Angeles
Los A
Ange
San Diego
70s
50s
Phoenix
Ph
h
80s
Santaa FFe
T
c
Tucson
El P
Paso
70s
Buffalo
50s
Oklahoma
k h
homa City
Ft.. Worth
Wor
LLittlee Rockk
Dallas
D
60s
A
ti
Austin
an Antonio
A
San
Houston
t
Mobile
b
bil
New
ew Orleans
70s
50s
U.S. Forecasts
Tomorrow
Hi Lo W
56 40 pc
78 62 pc
56 50 c
83 60 s
48 44 r
52 40 s
58 45 c
70 45 s
54 51 c
70 44 s
65 52 s
65 38 s
55 44 sh
53 32 pc
59 51 c
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
55
66
85
90
60
47
51
76
94
58
57
Today
Lo W
49 r
53 pc
61 s
75 c
39 pc
44 c
42 pc
57 s
74 s
47 c
51 sh
Tomorrow
Hi Lo W
58 48 pc
65 50 pc
87 64 s
85 74 pc
62 39 s
52 47 sh
56 44 pc
74 61 pc
94 77 s
57 43 pc
56 40 c
18
20
23
35
ashington
shington
h
D.C.
DC
Washington
h
d
Richmond
90s
Cold
T-storms
Stationary
Snow
Jacksonville
9
12
13
37
45
22
71 Attire
26
27
31
38
46
39
47
48
51
40
41
42
49
52
55
56
58
59
60
Showers
Flurries
Hi
50
53
79
78
54
90
69
82
57
69
88
61
75
60
38
96
52
84
93
67
87
62
65
86
68
76
61
48
53
43
49
Today
Lo W
40 c
35 s
64 pc
70 pc
42 s
77 t
58 pc
53 s
46 pc
45 s
77 sh
52 pc
54 t
42 pc
32 c
73 s
38 s
69 c
64 s
44 pc
78 pc
51 pc
52 c
77 t
54 c
69 c
53 c
35 pc
44 pc
36 pc
31 s
Tomorrow
Hi Lo W
54 42 pc
59 40 pc
83 65 pc
80 71 s
53 44 s
93 77 c
67 55 c
84 55 s
59 44 c
70 48 c
82 79 sh
64 52 c
75 57 pc
59 42 pc
33 19 sn
97 75 s
57 45 c
74 66 c
93 64 s
66 45 s
86 75 s
66 52 c
72 58 s
88 78 c
70 58 c
82 71 s
66 54 pc
47 39 pc
52 42 s
47 45 c
55 36 pc
61
62
63
64
67
68
69
70
71
72
65
66
BEWARE OF GHOSTS | By Debbie Ellerin
Across
1 Ice from above
5 Swift
10 Benders
14 Private
employer?
15 Bout venue
16 One way to
speculate
17 Hershey’s
toffee-andchocolate bar
18 Primate
research
subject?
25 Letter between
sigma and
upsilon
27 Kinda, as a suffix
28 Least desirable
cars on a train?
35 Fill completely
37 Spike with a
camera
20 Singer’s
wavering tone
39 Stately shade
trees
22 Home to
Rachel Maddow
43 He sells
Squishees to
Bart
23 Org. headed by
Mike Pompeo
49 Yes, to Yves
50 Fast food
reservation?
53 Flexible card in
blackjack
55
32 He fought Frazier
three times
56
33 Hot, in a way
34 One might be
hidden under a
mat
46 With skill
69 Grandson of
Adam and Eve
70 Insect repellent
ingredient
34
36
54
11
Tampa
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
Dr. Shukla was paid by Intuitive
several years ago to mentor surgeons on the robot and has taught
at Intuitive-supported workshops.
He says robotic-assisted surgery is of great value for more
difficult surgeries that require a
lot of suturing, because it provides increased range of motion.
Martin Makary, a professor of
surgery at Johns Hopkins Hospital, says the JAMA studies are
further proof that “technology is
not always the answer.”
He acknowledged that there
are surgeries for which the robotic system is superior, such as
for posterior throat tumors and
more complicated hysterectomy
cases. Also, robotic-assisted
prostate surgeries are easier on
the surgeon’s back.
But laparoscopy has been mastered for procedures like the removal of the gallbladder or the
tail of the pancreas. “The robot is
being used for everyday surgeries like gallbladder removals and
hysterectomies, where there’s already a great standard of practice in place,” says Dr. Makary.
“Any operation you can do in the
abdomen is being done with the
robot now, whereas the benefits
are only for a small subset.”
19
30
33
44
10
16
29
43
53
8
25
50
Rain
7
24
100+
Warm
6
21
28
Exclamation of
insight
Brings up to
speed
29 Rocker Rose
30 One way to play
music
31 Potato feature
36 Perrier product
72 Be a real stinker
38 Flow back
Down
1 Includes
40 Perry White’s top
reporter
2 Craft for couples? 41
3 “That’s in the
past”
42
4 Ira Gershwin’s
44
contribution
45
5 Workers’
47
struggle
48
6 Side squared,
for a square
7 Annoying sort
Certain bond, for
short
Taurus or Aries
Madrid museum
Disgusted groan
Crop decimators
“___ Be
Surprised” (Irving
Berlin song)
50 Snoopy, e.g.
8 As a whole
51 Holy Week ender
9 Paint lightly
52 One to hang onto
10 Triangular sails
53 Ladybug’s prey
11 Beautiful boy of
myth
54 In the
neighborhood
12 Dollops
58 Skeptical scoff
13 Coordinate
60 Scrabble piece
19 Tickle, so to
speak
61 Some
whistle-blowers
21 Routine parts
63 Like this clue’s
number
57 Kilt’s pattern
23 Contraction
before “brillig”
59 Austrian treat
24 “Hi,” from Javier
65 “The Pit and the
Pendulum” writer
62 Knitted
footwear for
swine?
26 Just fine
66 Invite
64 Bear with
too-hot
porridge
67 Land in the
water
68 Dutch
earthenware
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
s
s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice
Today
Tomorrow
City
Hi Lo W Hi Lo W
Anchorage
44 30 pc 41 31 s
Atlanta
69 48 s
72 54 pc
Austin
66 54 r
81 64 sh
Baltimore
59 35 s
56 46 c
Boise
57 37 pc 63 35 s
Boston
58 41 s
55 48 pc
Burlington
54 36 r
52 41 pc
Charlotte
69 44 s
72 52 pc
Chicago
43 31 pc 49 44 c
Cleveland
45 34 pc 52 43 c
Dallas
60 49 r
79 63 pc
Denver
53 42 sf 70 38 pc
Detroit
45 31 pc 49 43 c
Honolulu
85 75 sh 87 73 t
Houston
75 64 pc 80 69 sh
Indianapolis
45 32 pc 49 46 r
Kansas City
43 32 pc 56 47 pc
Las Vegas
79 58 c
79 57 s
Little Rock
56 42 pc 65 58 t
Los Angeles
69 60 pc 68 58 pc
Miami
79 67 pc 82 71 pc
Milwaukee
44 31 pc 48 43 c
Minneapolis
37 28 pc 42 31 sn
Nashville
56 40 s
63 55 c
New Orleans
78 61 pc 79 66 c
New York City
56 43 s
55 50 pc
Oklahoma City
53 39 r
73 53 pc
Today
Lo W
33 pc
57 s
39 s
62 pc
30 pc
35 s
44 s
46 s
39 pc
42 pc
51 pc
37 c
45 s
31 pc
43 s
15
32
Miami
Hi
45
75
58
82
46
56
61
71
48
58
66
55
59
43
61
5
17
70s
Orlando
l d
4
14
80s
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.
3
57
80s
70s
60s
60s
Honolulu
l l
Anchorage
A
h g
2
Philadelphia
Atlanta
A
t
Birmingham
i h
Jackson
50s
t d
Hartford
l igh
h
Raleigh
C
h l tt
Charlotte
C
b
Columbia
h ill
Memphis
hi Nashville
40s
50s
New
Yorkk
ew Y
Cheyen
Ch
Cheyenne
80s
30s
40s
k
Milwaukee
Detroit
40s
A
b q q
Albuquerque
20s
50s
1
30s
Augusta
A
g t
A
b nyy Boston
Albany
Cleve
Cl
l d
Cleveland
Des
es Moines Chicago
g
h
Omaha
Pittsburgh
g
Springfield
p g
40s
Denver
Indianapo
Indianapolis
Kansas
Topeka
C
d
Colorado
Ch
Charles
l t
Charleston
City
p
Springs
St.. Loui
Louis Louisville
Wichita
hit
Salt Lake City
LLas
Vegas
Ve
Toronto
T
Mpls./St.. Paul
Pau
Pierre
Sacramento
70s
Montreal
ttawa
Ottawa
Billings
50s
20s
40s
Helena
Eugene
70s
10s
Winnipeg
ip
Portland
Por
P
tl d
50s
0s
30s
Calgary
C
ary
Seattle
Hospitals tout the
$2 million system,
used in more than
4 million procedures.
The WSJ Daily Crossword | Edited by Mike Shenk
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
50s
surgery when it’s recurrent.
“At the end of the day, it’s an
unproven technology” for ureteral reimplants, Dr. Gargollo
says. “There’s no proof or data
showing that it’s superior to the
traditional surgeries that are
available. It’s more expensive,
and it uses longer anesthetic.”
Previous research has found
that when robotic surgery is
used to remove ovaries and ovarian cysts, there is a higher rate
of complications compared with
laparoscopic surgery.
Aseem Shukla, director of minimally invasive surgery at the Children’s Hospital of Philadelphia,
says he has used robotic-assisted
surgeries for ureteral implants in
children successfully. He says the
complications are likely due to
user error and not the technology.
Previous Puzzle’s Solution
P A L M
O L E O
D O G R
E S T
G
A N A
S L U G
T I D E
O B I
P I S T
T R
O S C A
G P A
R AM
E S P
E
A
R
L
S
B
I
S
T
R
O
L
H I
A C
I K
R
G O
E L
L E
O
N
C
E
G
O
E
T
H
E
G
M
T
T H E R
H E R E
U E R S
S
E T
D R E A
R E A D O
A S I S
D O N
T
I T
T E
I O G R E
R A N
T H E C A
R E A T G
E R S
E
S B Y
R
AW
C O
C O
U D
M
U T
L I
AM
T O
E N
R
U
B
E
E
D
G
E
S
E
E
N
S
N S
A Y
P S
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 31, 2017 | A13
2017 SUCCESSION RAGHUBIR SINGH (3)
LIFE & ARTS
ART REVIEW
A Lens Connecting Past and Present
In Raghubir Singh’s colorful Indian street scenes we can see echoes of traditional Mughal paintings
BY KAREN WILKIN
New York
YEARS AGO, I was introduced to
the work of Raghubir Singh
(1942-1999) by an impressively
knowledgeable friend, a passionate
and discerning collector of Indian
art. Singh’s photographs were in the
exalted company of an elegant
third-century couple from Gandhara, a suave 11th-century Chola
bronze group, an irresistible dancing Ganesha dated 1000, and a host
of delicate miniature paintings
made in the Mughal era, between
the early 16th and mid-19th century.
Singh’s deeply engaging views of his
native 20th-century India looked
right at home. They were, my friend
maintained, modern equivalents of
traditional Mughal paintings. With
their wealth of detail, their glimpses
of transient, revealing moments,
and above all, their play of opulent
color, Singh’s images of present-day
street scenes shared the spirit and
aesthetic of his predecessors’
works, transubstantiated into contemporary materials. The photos
fascinated me and, since I shared
my friend’s enthusiasm for Mughal
painting, I found her comparison to
be very provocative. My next task?
To study as many publications of
Singh’s work as I could find. I was
hooked.
My fellow fans and those just
discovering this compelling artist
can now see Singh whole, in “Modernism on the Ganges: Raghubir
Singh Photographs,” at the Met
Breuer. Organized by Mia Fineman
of the Metropolitan Museum of
Art’s department of photographs,
the retrospective covers the full
trajectory of Singh’s career with 85
works, ranging from his early photojournalism to his last haunting,
unpublished series.
We learn that although Singh
was born into an aristocratic family
in Rajasthan and made the street
life of Indian cities and towns his
lifelong principal subject, he lived
for extended periods in Hong Kong,
Paris, London and New York. We
learn, too, through informative
comparisons, about his friendships
with other photographers and his
responses to the work of Henri
Cartier-Bresson, whom he met in
Jaipur in 1966, to Satyajit Ray’s
films, and to American street photographers such as Lee Friedlander
and William Gedney. My collector
friend’s point about the continuity
of the Mughal tradition in Singh’s
photographs is borne out by a few
apposite miniatures, while some
vintage photographs of India provide additional context.
It’s a dazzling selection. We’re
struck first by the orchestration of
seductive, pulsing color in the
crowded, unstable compositions—
particularly noteworthy in that
Singh worked when the majority of
serious photographers preferred
black and white. (Much of Singh’s
photojournalism on view is indistinguishable from his other work;
he photographed for National Geographic, which assured him a supply of high-quality color film, otherwise prohibitively expensive in
India.) But if color is what initially
draws our attention, we soon become engaged by the ambiguous
narratives, telling incongruities,
and poetic combinations captured
by Singh’s penetrating eye.
A “Professional Lunch Distribu-
tor” (1992), in a nifty black-andwhite zigzag patterned shirt,
strides toward us, clutching his
metal containers. Flanked by people
in black-and-white clothing, he is
thrust forward by large incidents of
saturated red; two cropped figures
on either side, one with an outthrust arm, turn the scene into an
eloquent frieze. “Man Changing
Truck Tyres at a Petrol Pump”
(1984) is a play of circles at various
angles, all dull black, with flickers
of red, against a tawny ground.
Geometric patterns of red, yellow,
blue and blue-green on a truck and
a nearby billboard provide contrast,
while a trio of white, silhouetted
figures painted on the billboard enters into a contest between fiction
and fact with three standing men
and the crouching mechanic.
We are mesmerized by scenes of
lean wrestlers exercising, like modern versions of black-figured Greek
vase paintings; by crowds of pilgrims at the Ganges; by handsome,
dark-skinned men ogling women in
wind-blown blue and turquoise
silk, against the intricately carved
white marble of the Taj Mahal.
Deep space crashes against foreground incidents. We are swept
along by crowds. Among the most
remarkable and eye-testing images
is a tightly cropped view of a
“Pavement Mirror Shop” (1991), a
dizzying mosaic of reflections and
slices of actuality, all cool grays
and tans, with notes of red—an updated Cubist improvisation.
There are tranquil, mysterious
scenes, as well: occasional portraits; an electric fan centered
against the white wall of an exhibition space, dominating two sculptures of Shiva on either side; a man
collapsed on his big-wheeled
wooden cart, exhaustion as a symphony of tans, beiges and grays.
Singh’s last photos ring changes
on the presence, sometimes obvious,
sometimes elusive, of the Ambassador car ubiquitous in 1990s India.
Reflections in a rear-view mirror
challenge a distant view seen
through the windshield. An important landmark is framed by the window of an open car door. We’re held
by Singh’s brilliantly selected images, but we begin to realize that
his subject, all along, may not have
been the variety and flux of Indian
streets, but the act of seeing itself.
Modernism on the Ganges:
Raghubir Singh Photographs
The Met Breuer, through Jan. 2, 2018
Ms. Wilkin is an independent
curator and critic.
Raghubir Singh’s ‘Pavement Mirror Shop’ (1991), above left, and ‘Catching the Breeze’ (1975), above right; ‘Professional Lunch Distributor’ (1992), top
EXTRA
COMFORT
IN EVERY
STEP
#####
C U S T O M E R R AT E D
5
4 (6 oz) Bacon
Wrapped Filet Mignon
(#V382) Now $59.99
BUY 4 BACON WRAPPED
FILET MIGNONS
FOR $59.99 AND RECEIVE
The Un-Sneaker™ goes to work.
You deserve insane comfort 24/7. So why
not treat your feet to the Hubbard 24 Seven?
8 free STEAkburgers
f r e e s h i p p i n g*
ORD E R BY NOON (ct) DEC 19 th
F O R
C H R I S T M A S
D E L I V E R Y
KansasCitySteaks.com
SEARCH PRIORITY CODE: A712W3
OR CALL
8 00 793 9144
Free shipping and returns. Order online or call 844.482.4800.
Offer expires 12/19/2017. *Free Shipping applies to
standard delivery only. Limit of 5 shipments per
customer. Steaks and 8 (4 oz) Steakburgers ship in the
same cooler to the same address. Additional shipping
charges apply for Alaska, Hawaii & overnight
deliveries. Not valid with other offers.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
A14 | Tuesday, October 31, 2017
THE WALL STREET JOURNAL.
* ***
SPORTS
BASEBALL
A Power Surge Jolts World Series
FOR MORE THAN a century,
baseball lineups have been built
around the notion that a true
power hitter is a rare and precious
commodity. To maximize the impact of these special players, the
thinking went, it was important to
bat them in a certain order. “The
heavy hitter of the team is located
at the fourth place,” sportswriter
Tim Murnane declared in 1904.
Yet this World Series has revealed
one of the most dramatic and unexpected changes in baseball over the
past three years: Nearly every hitter
that steps up to bat represents a legitimate threat to hit a home run, resulting in a phenomenon in which
“scoring position” has come to mean
“standing at home plate.”
“Every batter,” sighed Houston
Astros reliever Joe Musgrove. “Every pitch.”
There are still one or two games
left, with Houston holding a 3-2
lead over the Dodgers heading into
Tuesday night’s Game 6. But already, the teams have combined for
22 home runs, a World Series record. Nine of them have come in the
ninth inning or later, also an alltime high, making this one of the
most frenetic series ever played.
The fireworks aren’t the byproduct of a few Ruthian sluggers trading blows. Fourteen different players have hit at least one home run,
a record high for a World Series. In
Sunday night’s Game 5, a wild 13-12
Astros win, Houston received homers from their leadoff hitter
(George Springer), their No. 9 hitter (Brian McCann)—and from
three more places in between.
It is a perfect representation of
baseball in 2017, delightful for middling hitters and completely depressing for many pitchers.
“It’s relentless now,” said former
major-league pitcher and broadcast
analyst C.J. Nitkowski. “Each guy is
a grind. There’s no, ‘I can take a bit
of a mental break where I can
throw my fastball down and away
with my eyes closed, and this guy
will be done.’”
In a bygone era, which feels as
dated as flannel jerseys and blackand-white telecasts, there was a
season in which only 57 players hit
20 or more home runs. The year
was 2014. During the 2017 regular
season, that figure more than doubled, to 117.
That dynamic, more so than the
Astros center fielder George
Springer hits a home run in
the 7th inning of Game 5.
TROY TAORMINA/REUTERS
BY BRIAN COSTA AND JARED
DIAMOND
power displayed by the very best
hitters, produced 6,105 home runs
during the regular season, shattering the previous major-league record of 5,693 set in 2000. In that
season, right in the heart of the socalled steroid era, 16 players blasted
at least 40 homers, compared to
just five this season. The distribution has completely changed.
The reasons have been the subject of endless speculation. Some
players and coaches have said that
the balls themselves are different,
with pitchers on both sides complaining that the World Series balls
have been too slick to effectively
throw certain breaking pitches. In
the regular season, plenty of conversation swirled that the balls
were livelier off the bat, sparking
the league-wide power surge.
Two independent studies have
supported the notion that the baseballs are behaving differently than in
the past, but MLB commissioner Rob
Manfred has denied any such alterations. “I know Mr. Manfred said the
balls haven’t changed,” said Astros
pitcher Justin Verlander. “But I think
there’s enough information out there
to say that’s not true.”
Some in the industry have
pointed to the uppercut swings
more players have adopted to
launch balls at a higher angle, adjustments prompted by increasingly prevalent data showing the
value of avoiding grounders. This
approach in part led to strikeouts
reaching an all-time high, too, but
when hitters connect, they are doing more damage than ever.
Whatever the causes, the effect
has been amplified by two pitching
staffs that are officially running on
empty. Teams have relied heavily
on their bullpens in this postseason, reflecting a broader shift in
strategy favoring frequent pitching
changes and heavy use of top relievers. And they’re getting tired.
On Sunday, Dodgers manager
Dave Roberts brought in reliever
Brandon Morrow to protect a onerun lead in the seventh inning.
Morrow had been an effective
weapon up to that point, with a
1.46 postseason earned-run average. But he had pitched in each of
the first four games of the series.
Appearing for a third day in a
row for the first time in his career,
Morrow threw six pitches. Two of
them landed in the seats. He exited
after giving up four runs, and the
Dodgers never regained the lead. Afterward, Morrow said it was a “selfish move” to lobby manager Dave
Roberts to put him in the game.
“You can’t turn him down,” Roberts said. “He felt good, he wanted
to be in the game, and it’s a credit
to him to be used like he has been
and want the baseball.”
The increasingly fast trigger managers have shown in pulling their
starters in favor of relievers has paid
off in many instances. But the downside has raised questions about how
sustainable the strategy is.
Fatigued arms are more prone to
mistakes, and overexposed relievers
lose their effectiveness. It’s a combi-
nation that adds up to lineups filled
with power threats leaving balls on
the other side of the outfield wall
with regularity. The bullpens in this
World Series have combined for a
6.33 ERA, which would be the sixthhighest of all time.
“If you watch baseball all
around this playoff series, there’s
some beat up bullpens right now,”
Astros manager A.J. Hinch said
during the ALDS. That was three
weeks ago. Now, after nearly a
month of this, Roberts said, “Everyone is taxed.”
At some point, MLB will likely
need to take stock of this World
Series. For now, though, the league
finds itself in an enviable position:
heading into Game 6 of one of the
most pulse-pounding, back-andforth World Series ever. An Astros
win Tuesday would give them the
first title in their 55-year franchise
history. A Dodgers victory would
send it to Game 7. Once a champion is declared, it will be time to
figure out what it all means.
NFL | By Jason Gay
A SAINTS VS. CHIEFS
SUPER BOWL?
with me). There’s still a game Monday night between the Kansas City
Chiefs and Denver Broncos, but
we’re now at the season midpoint,
and we should know a few things. I
say should, because this NFL season
has left me mostly confused. There’s
no sure shot, no undefeated powerhouse…and a lot of unwatchable
mush in the middle. (I watched most
of the Chargers-Patriots game Sunday and that sloggy puntfest was
about as much fun as the mumps.)
Here’s how I see the landscape
at the moment:
STACY REVERE/GETTY IMAGES
Did you stay up to
watch the entire wacky
five-hour baseball
game Sunday night? If
you did, congratulations! You have my admiration—and my permission to
take a series of 20-minute naps at
work this week. Just find the
couch in your boss’s office and
buzz some ZZZZZs. The boss will
understand. I think.
Confession: I went to bed. Sorry.
I am not trying to be a joyless
pooh-pooh bear. It’s just that my
kids wake up with the chickens at
dawn, and my body and sleep cycle
can’t withstand a five hour-plus
sporting event. It’s one thing if it’s
Rafa Nadal vs. Novak Djokovic, or a
really great Tour de France stage,
but it’s another if it’s thing if it’s a
destination wedding with 14 pitchers. Fourteen! I know it was an epic
night of offense, and the Journal’s
Jared Diamond is thinking about
getting the box score tattooed on
his lower abdomen, but I’m not sure
about a game that forces you to
drink 14 Red Bulls.
Besides, I’m crabby about those
shiny World Series arm patches
they’re making the Dodgers and
Astros wear, which look like hideous iron-ons stolen from a souvenir stand at a Monster Truck show.
What’s wrong with good old-fashioned, sewn-on patches? Why does
baseball insist on mucking up its
traditional, handsome style? The
caps are completely cluttered with
patches and logos, don’t get me
started on the Dodgers’ matte blue
batting helmets. Blechhhh.
Instead, let’s talk football. Yes!
Football. The other sport—the muchmaligned NFL, which some people
are watching, some people are boycotting, and probably a few say
they’re boycotting and are actually
watching (it’s OK: your secret is safe
TEAMS THAT AREN’T
COMPLETELY AWFUL AND
MIGHT ACTUALLY DO
NON-EMBARRASSING THINGS IN
THE PLAYOFFS
Philadelphia Eagles (7-1)
Pittsburgh Steelers (6-2)
New England Patriots (6-2)
Minnesota Vikings (6-2)
Kansas City Chiefs (5-2 entering
Monday’s game)
Seattle Seahawks (5-2)
TEAMS THAT LOOK PRETTY
GOOD…BUT I DON’T KNOW,
MAN, I STILL GET THE
HEEBIE-JEEBIES ABOUT
THINKING OF THEM AS LEGIT
CONTENDERS
Buffalo Bills (5-2)
Los Angeles Rams (5-2)
Carolina Panthers (5-3)
New Orleans Saints (5-2)
Tennessee Titans (4-3)
MAYBE THERE’S SOMETHING
THERE…BUT WHO KNOWS?
(NOT ME)
Atlanta Falcons (4-3)
Dallas Cowboys (4-3)
Dan Snyder’s Washington Sadness
Machine (3-4)
Baltimore Ravens (4-4)
Houston Texans (3-4)
JAX-LHR Jaguars (4-3)
Drew Brees and the New Orleans Saints have won five straight games.
WAIT: I THOUGHT THESE GUYS
WERE GOING TO BE GOOD
Oakland Raiders (3-5)
Denver Broncos (3-3 entering
Monday’s game)
Tampa Bay Buccaneers (2-5)
SORRY BUT NAH
Miami Dolphins (4-3)
San Di…Los Angeles Chargers (3-5)
Green Bay Packers (4-3)
Cincinnati Bengals (3-4)
Detroit Lions (3-4)
Chicago Bears (3-5)
Arizona Cardinals (3-4)
IF THEY TOOK THE REST OF
THE SEASON OFF TO BACKPACK
AROUND SPAIN I DON’T THINK
ANYBODY WOULD NOTICE
New York Jets (3-5)
New York Giants (1-6)
Indianapolis Colts (2-6)
NOT EVEN SURE IT’S FOOTBALL
Cleveland Browns (0-8)
San Francisco 49ers (0-8)
What is the biggest surprise of
the NFL season at the halfway
point?
Excitable Tony Romo being really good in the booth?
On the field, it’s hard to find
something more impressive than
the ascension of the Philadelphia
Eagles and quarterback Carson
Wentz, the North Dakota phenom
already being chatted up as an
MVP candidate.
I’d also cancel my kids’ birthday
parties to watch rookie Houston
Texans quarterback Deshaun Watson, who lost Sunday but has often been brilliant (19 touchdown
passes—tied with Wentz for the
league lead) and finally gives tormented Houston some QB stability.
What’s the biggest letdown of
the season thus far?
Besides the Raiders? It’s got to
be the injuries: Aaron Rodgers,
J.J. Watt, Odell Beckham Jr., David Johnson, Julian Edelman,
Zach Miller—that’s a starry infir-
mary for the NFL, and a reminder
of how mercilessly cruel the game
can be, even to people who aren’t
Browns fans.
What’s the deal with the defending champ Patriots? They
seem good and crummy at the
same time.
New England is far from a juggernaut—the banged-up defense
isn’t great, Tom Brady clearly
misses Edelman, key receiver
Chris Hogan hurt his shoulder
Sunday, and Bill Belichick’s
Grumpy Lobster Boat Captain (™)
face is already in postseason form.
And yet the Patriots are 6-2 and
about to start snacking on the free
airplane snacks of the AFC East.
Plus, New England has rolled
out its latest sneaky trick: a giant
stadium fog machine, which made
a home game against the Falcons
look like the climax of a Blue
Öyster Cult show. Don’t let anyone
tell you it was simply the weather,
you know how it is with those wily
Pats!
How do you feel about Justin
Timberlake doing the halftime
show?
The NFL blew off my airtight
case for Bob Dylan to do a threehour halftime show in his home
state of Minnesota, but I’m OK
with Timberlake—so long as he
brings back Janet Jackson. He’s
got to make it right. Come on.
We’re all a little older and wiser.
Well, at least you. I’m just older.
If you had to pick a Super
Bowl right now…
If New England can get home
field in the AFC, it’s hard to pick
against them in the…gah, picking
New England is so predictable at
this point; let’s have some fun!
Kansas City vs…I can’t do the Minnesota Vikings, even if a hometown Super Bowl would be incredible and what they’ve done with a
sketchy quarterback situation is
amazing.
I say Chiefs vs. the New Orleans
Saints in a high-flying Super Bowl
of offense and unbelievable tailgate food.
You laugh at my prediction, but
come on: it’s almost November,
and you have no idea, either. It’s
almost entertaining.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 31, 2017 | A15
OPINION
Bob Mueller’s Sideshow
The best way
to think of
Special Counsel
Robert
Mueller’s
Monday-morning
indictMAIN
ments is as a
STREET
compliment—
By William
backhanded as
McGurn
it may be—to
the chairman
of the House Intelligence Committee, Devin Nunes.
Like the special prosecutor,
Mr. Nunes and his committee
have been investigating the
2016 presidential campaign.
Unlike the special prosecutor,
Mr. Nunes has unearthed hard
evidence about both Russian
influence on the election and
domestic spying on Trump
campaign officials. And if the
committee gets the documents
it has been demanding for
months about the Federal Bureau of Investigation’s handling of the salacious Christopher Steele dossier, this week
may end even more explosively than it’s begun.
Right now that’s hard to
imagine, given how Washington has been overwhelmed by
Monday’s indictments of former Trump campaign manager
Paul Manafort and his former
business associate Rick Gates,
as well as news that another
former campaign adviser,
George Papadopoulos, pleaded
guilty to lying to the FBI about
his Russian contacts. Though a
court will determine whether
Mr. Manafort and Mr. Gates
are guilty of the crimes they
are accused of, surely it is
worth noting that those
charges, serious as they may
be, have little to do with what
Mr. Mueller was supposed to
be investigating when he was
named special prosecutor, to
wit: “the Russian government’s efforts to interfere in
the 2016 election.”
Meanwhile Mr. Nunes and
the Republicans on his intel
committee plod on. They do
so in the face of mockery and
contempt from the Beltway
press corps, and sabotage and
obstruction by Democrats, especially those on the committee. The obstruction includes
a manufactured ethics charge
against Mr. Nunes that has deliberately been kept unresolved in the House Ethics
Committee as part of an effort
to keep a cloud hanging over
Mr. Nunes so long as he continues to ask real questions
about not only the Russians
but our own government.
So what has Mr. Nunes’s
committee found? Turns out
that in the Obama years, especially in 2016, officials made
many requests to unmask the
identities of Americans, including Trump campaign officials, who were caught up in
foreign surveillance.
When asked about it by
PBS’s Judy Woodruff back in
March, Obama national security adviser Susan Rice
claimed she was “surprised”
and told Ms. Woodruff “I
know nothing about this.” Under oath before Mr. Nunes’s
committee, Ms. Rice’s memory
returned, and she admitted of
unmasking senior figures in
the Trump campaign.
Meanwhile the committee
learned that Ms. Rice’s colleague at the United Nations,
Ambassador Samantha Power,
had made hundreds of unmasking requests. During Ms.
Power’s appearance before the
committee, she oddly claimed
others were doing much of the
asking—even though her name
was on these requests. Did
anyone outside the House
committee think to ask why a
Democratic White House was
so free with such sensitive
info in an election year?
Nunes’s Intelligence
Committee plods on
with the real Russia
investigation.
Then there’s the Russian
question. The Steele dossier is
at the heart of the narrative
that Mr. Trump had colluded
with Moscow to steal the election from Hillary Clinton. Now
the same people who pushed
this narrative have lost all interest in the document that
helped fuel it. When two of
Fusion’s three partners invoked their Fifth Amendment
right against self-incrimination rather than reveal who
paid for the dossier, it looked
as though we might never find
out.
But the committee didn’t
give up. It subpoenaed Fusion’s
bank records, ultimately forcing the Hillary Clinton campaign and the Democratic National
Committee
to
acknowledge they had paid for
the dossier, notwithstanding
earlier Clinton campaign denials. On Saturday the committee
announced a deal over Fusion’s
bank records it said would “secure the Committee’s access”
to what it needed for its investigation.
Big questions remain for
the FBI. The main one requires a simple yes-or-no answer: Did the FBI use the information in the Steele
dossier to spy on Trump campaign associates? If so, did it
first verify the information in
the dossier?
And why would the FBI
want to pay for more information from a man doing opposition research for Mrs.
Clinton?
Here’s another way to put
it: As all eyes remain on Special Counsel Mueller and the
men he’s indicted, it may be
well to pay more attention to
a much-maligned committee
on Capitol Hill. Because after
months of stonewalling and
the public intervention of
House Speaker Paul Ryan, the
FBI has agreed to provide the
documents Congress asked
for. Mr. Nunes’s office confirms that the FBI documents
it has long sought are supposed to arrive this week.
Messrs. Manafort and Gates
may well be guilty of everything they’ve been charged
with. But this week, thanks to
a congressional committee’s
persistence, we may find out
the answer to what surely is a
much more combustible question: whether a presidential
campaign was able to leverage
opposition research based on
Russian disinformation to
bring about an FBI investigation into its rival’s campaign.
Write to mcgurn@wsj.com.
Five Eyes Are Better Than One
By Walter Russell Mead
T
his is a trying time for
international institutions, and the alphabet
soup of aging bureaucracies
often proves too slow, too legalistic or too corrupt to
meet today’s most demanding tests.
The North Atlantic Treaty
Organization must cope with
a world in which Turkey is increasingly hostile to its values
and objectives. Neither Mercosur (the South American
trade bloc) nor the Organization of American States has
dealt effectively with the Venezuelan crisis. The Association of Southeast Asian Nations is increasingly divided
in the face of Chinese maritime claims. Unesco has lost
its largest donor as the U.S.
pulls out, while the World
Trade Organization no longer
produces new global trade
agreements.
FIFA (the soccer federation)
and the International Olympic
Committee have seen their
prestige collapse as corruption
scandals widen. The Organization for Security and Cooperation in Europe has become
less effective as the Continent’s security challenges rise.
The Organization of the Petroleum Exporting Countries is a
shadow of its former self, and
the Arab League hardly exists.
Even the European Union, the
world’s most successful international institution, struggles
against a nationalist and populist backlash.
There is an important exception to the trend—an international coalition that influences global affairs but
doesn’t have an official name,
a headquarters, an entrenched
bureaucracy, a charter or a set
of bylaws. This is the group of
countries in the “Five Eyes”
network: Australia, Canada,
New Zealand, the U.K. and the
U.S. The name comes from the
world of intelligence, where
certain types of sensitive information are shared only
among these five countries.
An ad hoc Anglophone
alliance is far more
effective than most
global institutions.
There is no formal requirement that they act together.
They have no joint decisionmaking process. Teams of diplomats don’t negotiate long
and detailed memorandums
governing their plans for common action. Nor do these countries force a consensus where
one doesn’t exist. Each partner
moves at its own speed, on its
own path, and there is no obligation or expectation that they
will agree with one another or
work together on every issue.
Each of the Five Eyes countries
is jealous of its independence.
They seek to maximize their
sovereignty through cooperation rather than pooling it.
Yet their cooperation is real.
They share a common cultural
and institutional outlook, and
they are all engaged in global
trade and concerned for the
security of an international
system that promotes the free
flow of information, money
and goods. Over and over since
World War II, the Five Eyes
countries have found themselves with similar interests
and priorities. Over time, this
habit of cooperation has led to
deepening institutional links,
but their loose association has
never taken the top-down and
bureaucratic form that makes
most international institutions
so cumbersome.
As British policy makers
struggle with the consequences of Brexit, some hope
the Five Eyes will come riding
to the rescue. In population
and gross domestic product,
these countries are a formidable potential trading bloc: With
more than 450 million citizens
and a GDP of around $24 trillion, a trading system built
around the Five Eyes could offset many of the problems Britain expects to encounter once
it leaves the EU.
But that is not how this
group works. Anyone who expects some kind of formal
trade or political bloc to
emerge doesn’t understand
the Five Eyes’ ethos. But even
without the creation of a formal trade or political bloc,
membership in the Five Eyes
will help Britain avoid isolation in a post-Brexit world. In
the fields of trade, investment
and migration, the Five Eyes
countries will continue to be
relatively open to one another.
Their diplomats and policy
makers will continue to work
toward the kind of world in
which Britain, and the rest of
the coalition, can flourish.
The Five Eyes coalition has
always disappointed those
who sought to turn their partnership into something more
formal. But it has also disappointed those who expected it
to fade away. Flexible, pragmatic and open, the world’s
least organized international
coalition is among its most effective. As the new century
unfolds and bureaucratic, legalistic institutions struggle
in an increasingly fast-paced
and turbulent international
environment, looser associations on the Five Eyes’ model
could well play a growing role
in world affairs, supplementing or in some cases replacing
the legacy institutions and bureaucracies that dominated
the international landscape of
the late 20th century.
That would be a positive
development. This difficult
century will require more international cooperation, not
less. With legacy institutions
in disarray, countries need to
find new ways to cooperate
across borders on problems
that no single country, however powerful or rich, can
solve on its own.
Mr. Mead is a fellow at the
Hudson Institute and a professor of foreign affairs at Bard
College.
‘What Are You?’ They Ask My Son
By Michael Meyer
M
y son is 5. He was born
in Hong Kong and
spent the past two
years in Singapore. We returned to the U.S. so he could
grow up here, and the culture
shock has been minimal: Like
his fellow kindergartners, Benji
loves Legos and belting out
“Let It Go.” Unlike them, he
plays piano, which he learned
in a Singapore preschool. Also
unlike them, Benji is constantly
asked: “What are you?”
It’s a weighty question for
an adult, but to a child it
sounds silly. “I’m a boy,” Benji
replies. Sometimes he decides
he’s a girl. But this isn’t that
story, this is about being a biracial kid in America.
In Singapore, Benji was
simply a foreigner, just like
mom (born in Manchuria)
and dad (born in Los Angeles). Although China is as
much of a melting pot as
America—with 56 ethnic
groups and 150 languages—it
does not hyphenate identity.
You are Chinese first, and
then Han, not Han-Chinese,
or Tibetan-Chinese, or Manchu-Chinese.
In China aunties extol
Benji’s handsomeness and call
him hunxue’r, “mixed blood.”
At 5, he doesn’t quite
understand what it
means to be ‘biracial.’
‘I’m a boy,’ he says.
Having learned sarcasm in
America, Benji once answered:
“Actually, I’m a dog.” The person then asked me about his
breed.
On playgrounds, well-intentioned American yoga moms
riff on Benetton ads and extol
his appearance as if it were a
décor choice. These conversations surprise me: I went to
college in the early 1990s, and
was taught never to talk
about race or ethnicity. Today
Americans seem to think it’s
impolite not to. With benevolent curiosity, they ask:
“What’s your son? Is he a
half?”
We have to decide, for
school and doctor intake
forms request a child’s identity. We don’t consider Benji
half of anything. He’s more
than the sum of his parts, fluent in Mandarin and English,
along with some Hebrew,
learned at a Jewish summer
camp, although neither my
wife nor I am Jewish.
When pressed, we say he’s
a “double”—as the Japanese
put it, daburu. Being a double
sounds lucky: You get not one,
but two cultures.
“Double” also invokes intrigue. Being “mixed” carries
the historical connotations of
impurity, of illegality. Not until 1967 did the Supreme Court
rule interracial marriage constitutionally protected.
Although a 1993 Time
cover declared a multiracial
composite “The New Face of
America,” the American census didn’t allow people to
choose more than one race
until 2000; in 2010, nine million respondents marked multiple boxes. That seems like a
statistical outlier in a population of 326 million, but a 2015
Pew Research Center report
called multiracial Americans
“young, proud, tolerant and
growing at a rate three times
as fast as the population as a
whole.”
The majority of those surveyed had been targets of racial slurs and jokes. So I
tense up when people ask me
what Benji is. But kids are
smart. On his own, Benji has
decided how to answer people, anywhere in the world,
who ask him what he is. He
says with finality: “I am an
American.”
Mr. Meyer is author of
“The Road to Sleeping
Dragon: Learning China from
the Ground Up” (Bloomsbury).
BOOKSHELF | By Tom Shippey
The Wicked
Fly at Night
The Witch
By Ronald Hutton
(Yale, 360 pages, $30)
W
e don’t need to ask what witches look like. With
Halloween upon us, one can see them on every
street, with a standard set of accessories: pointy
hat, black cloak, broomstick, possibly a magic wand and hag
mask. And all witches are female, we know. Harry Potter
has a broomstick, but he’s not a witch; he’s a wizard.
What, though, is a witch? In his detailed study “The
Witch,” Ronald Hutton, a historian at the University of
Bristol, gives the standard academic definition right away:
“someone who causes harm to others by mystical means.”
He then notes immediately that this formulation will be
rejected by at least three groups in modern society. First,
those who believe that there are good witches as well, or
as Mr. Hutton calls them, “service magicians.” Granny
Weatherwax and her colleagues in Terry Pratchett’s
“Discworld” books are service magicians. They act as midwives, provide herbal
medicine, and protect
against supernatural intruders, elves, fairies and worse.
In addition, there are
those—like the adherents of
Wicca—who believe that
witchcraft is an ancient pagan
religion, essentially “joyous,
life-affirming, liberating,” in
touch with nature. Finally,
many would add that witchcraft
is or was a reaction against the
misogyny of established
churches and patriarchies, which
accounts for the determined attempts to
suppress it, culminating in rather more than three
centuries of witch-burning and -hanging across Europe
and in early New England.
While belief in witches (as defined academically) is all
but universal across the world, Mr. Hutton observes, it’s
surprisingly variable. Some societies fear and persecute
witches; some remain relatively unconcerned. And, as it
turns out, some regard witches as female, others as male,
and still others as gender-neutral.
Belief often remains strong to this day, with outbreaks of
panic and repression in many places, notably South Africa
and Central America. Even in Britain this century, police
have investigated nearly 100 cases of child abuse provoked
by suspicion that the children were witches, including four
murders. In the 1980s, fear of satanic rituals involving child
abuse caused gross miscarriages of justice on both sides of
the Atlantic.
The root cause of belief in witches may well be a
reluctance to believe that misfortune just comes by chance.
When something bad happens, someone must have done it,
someone who can be blamed. This impulse gets worse in
times of stress, but it needs an element of previous belief to
focus on.
The Old Testament shows little interest in witches—apart
from the Witch of Endor in 1 Samuel—and even the famous
verse from Exodus 22, “Thou shalt not suffer a witch to
live,” may be a mistranslation. What it was recommending
was probably not death but exile from the community.
From the early 15th century to the late 18th,
some 40,000 to 60,000 people were put to
death for witchcraft in Europe.
By contrast, ancient Rome was witch-obsessed, with
early records of mass execution, for, as the Roman
administrator Pliny wrote, “nobody is unafraid of falling
victim to an evil spell.” Christianity, however, long
remained rather tolerant. The great theologian and saint
Thomas Aquinas held that harmful magic was the work of
demons, but popes and bishops for centuries showed no
great zeal in rooting out its practitioners.
Things changed rather suddenly, and Mr. Hutton pins the
place and time down to the 1420s, in the Alps and Pyrenees.
Here was a fatal combination of old belief in female nightflyers—“brujas” and “striges”—together with a new fear of
heretics such as Cathars and Waldensians, some of whom,
Mr. Hutton notes, had taken refuge in the mountains after
being “driven from or wiped out in more accessible areas.”
The pressure often came from preaching friars, determined
to impose orthodoxy and having a formidable machinery of
inquisition at their disposal.
A further element was increasing fear of elite ceremonial
magic. As C.S. Lewis pointed out long ago, you were
unlikely to meet witches like those in “Macbeth” unless you
went out on to the heath, the wastelands. But learned
mages like Dr. Faustus, or Shakespeare’s Prospero, with
their great books of wizardry, might be operating in some
attic on your own street.
Whatever the combination, the result was centuries of
witch-burning, from 1424 to a final case in Switzerland in
1782, causing some 40,000 to 60,000 deaths in Europe, most
of them concentrated in the decades from 1560 to 1640.
National statistics are patchy. England, with a strict and
skeptical legal system, accounted for about 500. Lowland
Scotland was far more dangerous. Highland Scotland and
Ireland—where fairies were the danger, not witches—were
almost unaffected. Much depended on the local beliefs onto
which inquisitors could hook accusations. But behind the
whole grisly outbreak was a consistent learned construction
of satanic Sabbaths, sexual orgies, child murder and
cannibalism. Torturers told the victims what to confess to
and forced them to accuse their neighbors.
And then it stopped. As Mr. Hutton notes, European
belief in witchcraft was exceptional in two respects.
First, in turning witches into practitioners of an evil and
organized anti-religion, an existential rather than a
personal threat; and second, in ceasing spontaneously
(at least on the official level). What, one wonders, took
away the fear and turned witches into Halloween playtime? Whatever it was, we can be grateful for it.
Mr. Hutton’s study has little to say about the immediate
present. J.K. Rowling and Pratchett do not appear in his
index, nor does Salem, and even Shakespeare gets very
little space. What he has done very valuably, though, is to
put what most of us know already into a far wider context,
both geographically and historically. It’s up to us then to
examine our own notions of witches and witchcraft—no
longer threatening, but still perfectly familiar.
Mr. Shippey’s book “Hard Reading: Learning from
Science Fiction” was published last year.
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.
A16 | Tuesday, October 31, 2017
OPINION
S
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
The Manafort Indictment
Scouting Is About Opportunities, Not Gender
pecial Counsel Robert Mueller indicted
One popular theory is that Mr. Mueller is
former Trump campaign chairman Paul throwing the book at Mr. Manafort so he will
Manafort for tax fraud on Monday, and cop a plea and tell what he knows about Rusthe main charge against Donsian-Trump campaign chicaMueller’s charges relate nery. But that assumes he
ald Trump is poor judgment
for hiring the notorious Beltknows something that to
to money-laundering
way operator.
date no Congressional invescash from Ukraine.
The indictment accuses Mr.
tigation has found. ProsecuManafort (and business parttors typically try to turn witner Richard Gates) of funnelnesses before they indict,
ing money from a pro-Russia party in Ukraine and Messrs. Manafort and Gates pleaded not
into offshore shell companies and bank ac- guilty on Monday.
counts. They then allegedly used these accounts
Meanwhile, we’ve learned in recent days that
to fund their spending habits, neglecting to de- Fusion GPS, the oppo research firm hired by
clare the money to the IRS.
Democrats to dig up dirt on Mr. Trump, was
The indictment also accuses Mr. Manafort of hired initially by the Washington Free Beacon,
failing to register as an agent for a foreign gov- a conservative website largely funded by GOP
ernment as required under the Foreign Agents donor Paul Singer. This is embarrassing for the
Registration Act (FARA). This is news mainly Free Beacon, which has been caught jumping
because violations of that law haven’t been suc- in bed with sleazy operators like Fusion.
cessfully prosecuted since 1966. The Russia
But none of this absolves Democrats from
probe has exposed the degree to which lobby- their role in financing Fusion to hire Christoists ignore this statute that the Justice Depart- pher Steele, the former British spook, to collect
ment has failed to enforce. (Democrat Anthony information about Mr. Trump’s ties to Russia.
Podesta announced Monday that he is leaving The Free Beacon says it had nothing to do with
his lobbying firm amid the Mueller probe. He Mr. Steele or his dossier.
is the brother of John Podesta, who ran Hillary
The Democrat-Fusion-Russia story requires
Clinton’s campaign.)
as full an investigation as the question of
The most striking news is that none of this Trump-Russia collusion. All the more so given
involves the 2016 election campaign. The in- that the FBI may have used the Steele dossier,
dictment makes clear that Mr. Manafort’s work much of which has been discredited, to begin
for Ukraine and his money transfers ended in investigating the Trump campaign and to seek
2014. The 2016 charges are related to false a warrant from the Foreign Intelligence Surveilstatements Mr. Manafort made to the Justice lance Court.
Department.
Some readers were offended that we sugIn other words, Mr. Manafort stands accused gested last week that Mr. Mueller is too close
of a financial and lobbying scam, which is ex- to the FBI after running it for a dozen years to
actly what Mr. Trump risked in hiring a swamp investigate the agency’s role with the dossier.
denizen. Mr. Manafort has lobbied for a rogues But no one has explained why such a relationgallery of dictators, with the occasional domes- ship isn’t a conflict of interest. The probe can
tic scandal (HUD contracts).
continue with someone else in charge, but most
Separately, Mr. Mueller released a guilty of the press corps is so invested in the Russiaplea by Trump campaign policy adviser Trump collusion narrative that they refuse even
George Papadopoulos for lying to the FBI in to acknowledge uncomfortable facts they’d usuearly 2017 about his interaction with “foreign ally be shouting about.
nationals whom he understood to have close
Americans deserve to know how Russia inconnections with senior Russian government terfered in the 2016 campaign, but one problem
officials.” The plea suggests Russians might with special prosecutors is that they exist to
have been attempting to supply the Trump prosecute—someone, somewhere for somecampaign with opposition research on Hillary thing—more than they shed light. The latter
Clinton. But Mr. Mueller provides no evidence should be Congress’s job, and the Members
this happened.
should keep pressing to tell the complete story.
G
Europe Beats America
ood news: Tax reform is still possible. Or bandwagon. Prime Minister Mark Rutte promat least it is in Europe, which is a chal- ises to cut the top corporate rate to 21% from
lenge to America as Washington’s bat- 25% by 2021 in the coalition agreement he
tles over credits and loopholes
signed with other parties this
French and Dutch tax month to form a government
risk leaving the U.S. behind.
France is the happiest surthe March election. The
reforms raise the stakes after
prise. President Emmanuel
Hague will scrap its 15% divifor Washington.
Macron last week pushed a
dend tax and simplify the perbudget featuring substantial
sonal-income tax to two
tax relief through the National
brackets from four, with the
Assembly. The top rate on corporate profits will top rate falling to 49.5% from 52%. Hey, it’s
fall to 28% by 2020 from 33.33% today, and Mr. something.
Macron has promised 25% by 2022. Paris is rollImportant features of both reforms are the
ing out a flat 30% rate on capital income such focus on simplicity and lower rates. While the
as realized gains and dividends, compared with elimination of some credits and exemptions
rates as high as 45% on some gains today. The might lead to higher payments for some compabudget also eliminates the wealth tax on all as- nies or individuals, both governments aim for
sets except real estate.
tax systems that are easier to understand and
Critics branded Mr. Macron “the President administer, more efficient, and that distort
for the rich” for these overhauls, but the main their economies less.
effect will be to stimulate investment and job
Washington is often tempted to think none
creation alongside the major labor-market of this matters because companies inevitably
overhaul Mr. Macron introduced this summer. will be drawn to world’s largest economy. For
The tax cuts are also a bid to woo businesses some that’s true. But a growing European econthinking of leaving Britain after Brexit. Even di- omy under reformers such as Mr. Macron inrigiste Paris has figured out that tax codes can’t creasingly offers its own enticing opportunities
be confiscatory in a world of globally mobile for investors. Do American politicians really
capital and labor.
want to have to explain to voters why they let
The Netherlands also is jumping on the the U.S. trail even France?
D
About That ObamaCare ‘Sabotage’
emocrats are accusing the Trump Ad- erty line in San Jose will pay just a buck more
ministration of “sabotaging” Obama- next year for the county’s most popular silver
Care by discontinuing illegal subsidies plan. The net monthly premium the consumer
to insurers, but last week
would pay for a bronze plan
A federal judge rules
even an Obama-appointed
will be $81 less next year. A
judge in California said othergold plan will be $87 cheaper.
that Trump is likely
wise. The ruling deserves
“No wonder that back in Januto win on the merits.
more public attention.
ary 2017, economists hired by
Federal
Judge
Vince
the State of California estiChhabria rejected and ridimated that the state’s response
culed a petition by 18 states to enjoin the White to the anticipated termination of CSR payments
House from stopping cost-sharing reduction pay- would result in 20,000 more people buying health
ments (CSRs) that subsidize lower copays and care in California in 2018,” the judge wrote.
deductibles for consumers on the exchanges who
The states cite a Congressional Budget Office
earn less than 250% of the poverty line. “It ap- report projecting that ending payments would
pears initially that the Trump Administration has swell the ranks of the uninsured, but Judge
the stronger legal argument,” the judge noted, Chhabria notes this prediction was based on the
adding that “the emergency relief sought by the erroneous “assumption that many insurance
states would be counterproductive.”
companies would respond by fleeing the exA brief legal synopsis: President Obama changes—something that hasn’t happened (at
usurped the legislature’s power of the purse by least not for 2018).”
making the payments without a Congressional
Judge Chhabria concluded that the Trump Adappropriation. The House of Representatives ministration is more likely to prevail on the legal
sued, and last year federal Judge Rosemary Coll- merits. And he ruled that forcing payments to reyer ruled for the House, while letting the pay- sume after rates have been finalized would benements continue pending an Obama Administra- fit insurers rather than consumers by allowing
tion appeal.
them “to collect double payments in 2018.”
Meanwhile, insurers have hedged their risks.
The upshot is that consumers are unlikely to
As Judge Chhabria noted, insurers in 40 or so be immediately or severely harmed by the paystates accounted for the potential termination ment cutoff, though there could be consequences
by jacking up premiums on their silver plans, but in future years. Republicans needn’t panic over
in a way that would hold most consumers harm- market disruptions as they negotiate with Demless. Premium tax credits are pegged to an indi- ocrats over the CSR payments. They should
vidual’s income and the price of the second-low- press for a genuine bipartisan deal that includes
est silver plan in their area. So the value of the reforms such as relaxing the employer and inditax credits rises with premiums.
vidual mandates and expanding health-savings
For example, a 50-year-old at 300% of the pov- accounts.
With regard to Davia Temin’s
“Don’t Let Your Girls Become Boy
Scouts” (op-ed, Oct 25): The vast majority of the 215 national scouting
programs are co-gendered. In fact,
besides the U.S., only Pakistan, Nigeria and Saudi Arabia do not allow
girls in their programs. Not exactly
progressive company.
The Boy Scouts of America (BSA)
is responding to the input of the customers, families currently not involved in scouting who in a survey
expressed 90% and 87% interest in
having their daughters participate in
Cub and Boy Scouts, respectively.
This is not a hostile takeover. It is a
company responding to a market that
has incredible interest in its product
but cannot currently get it.
Girl Scouts have stated that they
are not interested in a merger, and
the BSA is fine with this. Both organizations will be competing for customers, and it is up to the organizations to deliver the best program for
youth. This should be the goal of
both organizations, instead of trying
to maintain a monopoly based on
gender.
EDWARD C. THEOBALD II
St. Louis
National Organization for Women
specifically asked the Boy Scouts to
open a path to Eagle Scout for girls.
Other nations’ scout organizations already include both genders. Parents
have many options for their daughters: Girls Scouts, American Heritage
Girls and the new BSA program. Let’s
allow parents to choose the one
that’s the best fit for their particular
daughters and recognize the good
that all of these groups do for America’s young people.
ROBIN FENNEMA
Tallahassee, Fla.
As a female Venturing youth
leader in the Venturing program of
the Boy Scouts of America, I would
greatly disagree with the assumption
that “the BSA has no dedication to
girls or girls’ leadership.” I have been
guided and encouraged throughout
my path to leadership by many members of the BSA, both male and female. The BSA Oath and Law has
taught me many of the same morals
and principles as are in the Girl
Scout’s Mission Statement.
With regard to the concerns of
protection of the female members, in
my experience as a young female in
the BSA, I have received nothing but
The Cub Scouts already offer
encouragement and guidance to beweekend camping events for the encome mature and independent.
tire family. Many girls attend their
My experience has been entirely
brothers’ troop meetings because of
positive. While the fuss over this isfamily schedules but have to sit on
sue continues, my girl-led crew will
the sidelines while the troop plans its be busy working on earning our 50outdoor activities and service projmiler backpacking award.
ects. What the BSA said is true—it is
FLANNERY FANGMAN, AGE 15
President of Venturing Crew 572
responding to the wishes expressed
Boy Scouts of America
by its members who want similar
Granger, Ind.
programs for their daughters. The
Draw Best Tax Line Between C and S Corps
In response to Brian Reardon’s cry
for S-corp tax breaks (“Family Businesses Deserve a Tax Break,” op-ed,
Oct. 24), he brings up good points
but misses the big picture. As a representative for S corps, he’s not paid
to address the big picture. Passthrough entity tax considerations are
an outgrowth of our ridiculous income-tax code, whereby small business gets government’s limited liability protection without paying the
higher C corp taxes. Why not make it
fair for C corps as well? Along with
cutting the C corp tax rate below
most individual rates, allow C corps
to deduct dividends just as they’re
allowed to deduct interest payments
to their banks. Most small businesses would convert to C corps, and
we’d have a much simplified structure that eliminates all pass-through
tax and legal bureaucracies in its
wake.
The big picture is to simplify the
tax code, to make it fair to all—
something it can’t even pretend to
do now. For individuals, the brilliance of the Trump tax plan is the
doubling or tripling of the standard
deduction which will allow most taxpayers to simply and completely bypass much of the tax code’s nonsense. Maybe it can do something
similar for business.
NICK SAMPAIR
Novato, Calif.
Far from simplifying the tax code,
a 25% pass-through rate will require
complex regulations to differentiate
between salary and business income.
The wealthy will almost certainly be
able to create vehicles that pay the
lower 25% rate and distribute annual
“profits” without paying the personal income tax. Instead, S corps
should continue to be taxed at standard personal rates, and those who
truly want to reinvest their profits
to grow their businesses will quickly
switch to C corp status.
SIMON JACOBS
New York
Opioid Mess Has Many Well-Meaning Fathers
Holman W. Jenkins, Jr.’s “Big (and
Hurting) Media on Drugs” (Business
World, Oct. 21) reflecting on the opioid problem expresses the power media can have on creating a problem.
He points out that in 1997 The Wall
Street Journal and the American
Medical Association pressed for more
adequate control of pain.
This led to the establishment of
subjective “pain scoring” for hospitalized patients. Nurses were required
to institute a pain scale for all patients. Physicians were encouraged to
bring those subjective pain numbers
down. Physicians, being the goal-oriented people they are, then strove to
get “better numbers.” It became less
and less common for a patient whose
complaint was pain to leave an emergency room without a narcotic.
I suspect that during those years
it wasn’t drug companies pushing
their narcotics as much as mediagenerated public pressure to use
The Jones Act Has Enabled
Price Fixing in Recent Past
Your editorial “Puerto Rico’s
Backlog” (Oct. 27) states that Puerto
Ricans face the oligopoly power of
Jones Act ships, which makes buyers of products from the mainland
vulnerable to conspiracies to raise
transportation prices. This issue
isn’t merely hypothetical. In 2012,
three Jones Act suppliers, including
Crowley Maritime Corp., pleaded
guilty to fixing prices in their
Puerto Rican trade, and six of their
executives went to prison. Permanently excluding Puerto Rico from
the Jones Act would be a powerful
antitrust weapon.
EM. PROF. THOMAS GRENNES
North Carolina State University
Raleigh, N.C.
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.
them. Mr. Jenkins also points out
that the uniquely U.S. solution is to
file lawsuits against deep-pocket
drug companies.
Just as money taken from the tobacco industry to finance the health
care of those injured by smoking, but
used to fill state coffers and deflected
for other uses, these potential gains
won’t likely trickle down to those in
need.
S. HORWITZ
Bethesda, Md.
The Wisdom of Frederick
Douglass Is Worth Recalling
I concur with Robert L. Woodson
that Frederick Douglass would have
agreed with Amy Wax and Larry Alexander. Mr. Woodson cites “neighborhood moral mentors and character
coaches” who “changed the behavior,
attitudes and life trajectories of onceviolent gang members” (“Black Americans Need Bourgeois Norms,” op-ed,
Oct. 12). It was Frederick Douglass
who said: “It is easier to build strong
children than to repair broken men.”
JOSEPH R. LYNN
Mount Holly, N.C.
Pepper ...
And Salt
THE WALL STREET JOURNAL
“I have no reliable statistics,
but one seldom hears
about brooms crashing.”
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 31, 2017 | A17
OPINION
By Frederick M. Hess
And Grant Addison
A
lmost every week brings a
new campus controversy:
a college speech code that
goes too far, an invited
speaker shouted down by
students, a professor investigated
for wrongthink. While lamentations
abound for the state of free inquiry
at American universities, few have
suggested substantive proposals for
redress.
Withhold federal research
dollars from institutions
that practice viewpoint
discrimination.
Here’s a straightforward idea that
would be easy to put into practice:
Require schools to assure free
speech and inquiry as a condition of
accepting federal research funding.
In addition to subsidizing tuition
and providing student loans, Washington disburses billions of dollars
to colleges and universities for research—nearly $38 billion in fiscal
2015 alone.
Those funds constitute about
60% of all support for universitybased research, according to the
American Association for the Advancement of Science. Because universities build in usurious rates of
overhead on this money—in some
instances, upward of 50% goes to
underwrite salaries and facilities—
these are some of the most prized
funds in academia. It would be easy
for Washington to require schools
to protect free speech before the
cash can be disbursed.
Massive federal investment in
higher education dates to World
War II, when the U.S. purposely
made universities a pillar of the nation’s approach to research and development. In a 1945 report, Vannevar Bush, director of the Office of
Scientific Research and Development, insisted that “freedom of inquiry must be preserved under any
plan for Government support of
science.”
At the time this meant measures
to protect university research from
governmental interference. Today the
threat to free inquiry on campus
comes from within. In a study last
December, the Foundation for Individual Rights in Education reviewed 449
higher-education institutions—345
public and 104 private—and found
that 92% had policies prohibiting certain categories of constitutionally
protected speech.
Cross-referencing FIRE’s data
with figures from the National Science Foundation illustrates a disheartening reality: Of the 30 highereducation institutions that collected
the most federal research funds in
fiscal 2015, 26 maintain formal policies restricting constitutionally protected speech. Six of them—Johns
Hopkins, the University of Michigan,
Harvard, Penn State, the University
BARBARA KELLEY
Colleges Should Protect Speech—or Lose Funds
of Texas at Austin, and New York
University—maintain policies FIRE
categorizes as “substantially restricting freedom of speech.” These 26
colleges and universities took more
than $14 billion in federal research
funding in fiscal 2015, or nearly 40%
of the total disbursed.
Academics used to understand
that policies to stymie speech and
expression are anathema to free inquiry. Consider the “General Declaration of Principles” issued in 1915
by the American Association of University Professors. The group asserted that the university should be
“an inviolable refuge” from the tyranny of public opinion: “It is precisely this function of the university
which is most injured by any restriction upon academic freedom.”
Prohibitions on what can be said
or written inevitably favor certain
questions, points of view, and lines
of inquiry while discouraging or
barring others. Speech codes, trigger warnings, bias-response teams
and the like lead students and professors to self-censor. In a national
survey this year by FIRE and YouGov, 54% of students said they
“have stopped themselves from
How Democrats Learned to Love Insurance Companies
By Allysia Finley
D
emocrats used to denounce
health insurers as greedy, but
lately their mutual interest in
propping up ObamaCare has made
these former foes into something
more like frenemies.
The cost for the most popular
ObamaCare silver plans will increase
37% on average next year. Democrats
and insurers are both blaming soaring premiums on the Trump administration, which is purportedly trying
to sabotage the law. They complain
that loosening the individual mandate and slashing ObamaCare’s advertising budget reduces enrollment
among the healthy youngsters who
keep premiums in check. They say
the White House’s move to end costsharing payments to insurers will
drive up premiums and repel “young
invincibles.”
The party is working
with its old punching bag
to stop the Republicans’
ObamaCare reform efforts.
These arguments are dubious, not
least because premiums were rising
even before Mr. Trump took office.
Since 2013, the average premium on
the ObamaCare exchanges has doubled. The real ObamaCare saboteurs
were the Democrats who designed
and passed such a haphazard law.
Insurers need young, healthy people as customers to offset the costs of
covering older and sick people. But
the law’s provision allowing young
adults to stay on their parents’ plans
up to age 26 has removed millions of
potential customers from the private
insurance market. About 2.3 million
people 19 to 25 were added to family
health plans between September
2010 and the start of open enrollment in October 2013, according to a
report last year from the Department
of Health and Human Services.
Democrats for whatever reason
didn’t foresee just how many young
adults would jump onto their parents’
coverage. The share of young adults
with employer-sponsored insurance
has risen by more than 10 percentage
points under ObamaCare, according
to Census Bureau data. Such plans
are typically cheaper than the ones
available on the individual market,
thanks to favorable tax treatment,
and companies with more than 100
employees are exempt from many
costly state mandates and ObamaCare’s 10 essential benefits.
Young people are also flocking to
Medicaid, bringing states billions
more in federal cash while depriving
private insurers of healthy customers.
Since 2014, when ObamaCare allowed
states to increase Medicaid eligibility
to 138% of the poverty line, 2.5 million
more Americans age 18 to 35 have enrolled. This was foreseeable. Medicaid
enrollment among the young had been
increasing even before ObamaCare
passed. There are now 13.4 million
young people on Medicaid, up from
4.8 million in 2000. The number of
young people who signed up on
ObamaCare’s exchanges, by comparison, is only 3.3 million.
Medicaid and the ObamaCare parental option have become safety
nets for millions of millennials who
have dropped out of the labor force.
What’s more, those young people
who do have jobs aren’t exactly raking in the dough. The average weekly
earnings for a worker age 20 to 24 is
$537 ($27,294 a year) while those 25
to 34 earn $778 ($40,456), according
to the Bureau of Labor Statistics.
This could help explain why
ObamaCare’s individual mandate has
been so ineffective. In 2015, only 6.6
million of the 29 million uninsured
paid the penalty. ObamaCare waives
the tax penalty if the uninsured person
would have to spend more than 8% of
his earnings to afford the lowest-cost
bronze plan available to him (after tax
credits are included). What this means
is that in expensive health markets
with older risk pools—such as the
Northeast and the Midwest—low-wage
workers need not fear the taxman. The
law also exempts people who face “financial hardships” that prevent them
from buying coverage.
All of these distortions stem from
the fact that Democrats tried to force
young people with low pay to subsidize health care for older people who
generally earn more. Under ObamaCare’s age-rating bands, insurers can
charge 55- to 64-year-olds no more
than three times what young customers pay—meaning higher premiums
on the latter. Tax credits were supposed to offset this increased cost on
the young, but they have brought
many more older people into the insurance market, according to federal
data. States like West Virginia, which
has an older demographic profile,
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY
Rupert Murdoch
Executive Chairman, News Corp
Robert Thomson
Chief Executive Officer, News Corp
Gerard Baker
Editor in Chief
William Lewis
Chief Executive Officer and Publisher
Matthew J. Murray
Deputy Editor in Chief
DEPUTY MANAGING EDITORS:
Michael W. Miller, Senior Deputy;
Thorold Barker, Europe; Paul Beckett,
Washington; Andrew Dowell, Asia;
Christine Glancey, Operations;
Jennifer J. Hicks, Digital;
Neal Lipschutz, Standards; Alex Martin, News;
Shazna Nessa, Visuals; Ann Podd, Initiatives;
Matthew Rose, Enterprise;
Stephen Wisnefski, Professional News
Paul A. Gigot, Editor of the Editorial Page;
Daniel Henninger, Deputy Editor, Editorial Page
WALL STREET JOURNAL MANAGEMENT:
Suzi Watford, Marketing and Circulation;
Joseph B. Vincent, Operations;
Larry L. Hoffman, Production
EDITORIAL AND CORPORATE HEADQUARTERS:
1211 Avenue of the Americas, New York, N.Y., 10036
Telephone 1-800-DOWJONES
DOW JONES MANAGEMENT:
Mark Musgrave, Chief People Officer;
Edward Roussel, Innovation & Communications;
Anna Sedgley, Chief Operating Officer & CFO;
Katie Vanneck-Smith, President
OPERATING EXECUTIVES:
Ramin Beheshti, Product & Technology;
Jason P. Conti, General Counsel;
Frank Filippo, Print Products & Services;
Steve Grycuk, Customer Service;
Kristin Heitmann, Transformation;
Nancy McNeill, Advertising & Corporate Sales;
Jonathan Wright, International
DJ Media Group:
Almar Latour, Publisher;
Kenneth Breen, Commercial
Professional Information Business:
Christopher Lloyd, Head;
Ingrid Verschuren, Deputy Head
saw two older exchange sign-ups for
every young one.
Democrats and insurers argue
Washington should spend more on
marketing ObamaCare to young people. But Texas, which spent little on
marketing, has a younger risk pool on
the exchanges than California, which
spent heavily. One real difference is
that Texas didn’t expand Medicaid,
and California did. Advertising alone
won’t impel people to buy an overpriced product they don’t want.
Insurers also howl that the administration’s plan to stop cost-sharing
payments to insurers will require them
to raise premiums. This, they say, will
“destabilize” the ObamaCare marketplaces. But most people won’t be affected, because as premiums rise the
tax credits increase commensurately.
Higher premiums will squeeze the 15%
or so of enrollees who earn more than
400% of the poverty line and are thus
more likely to be older.
While Democrats and insurers
have a vested interest in maintaining
ObamaCare’s regulatory edifice, the
exchanges’ poor design has invited
GOP reforms. For that they only have
themselves to blame.
Ms. Finley is an editorial page
writer at the Journal.
60 YEARS OF ADVENTURE
AND DISCOVERY
sharing an idea or opinion in class
at some point since beginning college.” All to the detriment of a good
education.
Leveraging federal money is one
way to discourage campus speech
restrictions. Federal research funds
should come with contractual provisions that obligate the recipient
schools to guarantee open discourse. Colleges should be required
to offer assurances that their policies do not restrict constitutionally
protected speech or expression and
that they will commit to safeguarding open inquiry to the best of their
ability. Violating such assurances
would be grounds for loss of funds
and render the school ineligible for
future research dollars.
Further, colleges that receive research grants should be required to
establish formal processes for investigating and appealing allegations of
speech suppression or intellectual
intimidation. Such machinery already exists to address other forms
of research misconduct.
These provisions could be implemented by Congress, by presidential
directive, or by individual grantmaking agencies. Whatever the case,
the move is entirely appropriate and
wholly within the purview of the
federal government. Taxpayer funds
should not subsidize research at institutions where free inquiry is compromised.
Tying research funding to free
speech would give a stake to serious
scientists in fields like engineering
and biology. These scholars traditionally have left the campus culture
wars to their more politicized colleagues in the humanities and social
sciences. Under this plan, they
would suddenly have an incentive to
help push higher education back to
its intellectual roots. The same goes
for college presidents, many of
whom have found it easier to placate the radical fringe than to defend free inquiry. With federal research funds on the line, they would
suddenly face a new financial and
political calculus.
Mr. Hess is director of education
policy studies at the American Enterprise Institute, where Mr. Addison is program manager for education policy. They are the authors of
a new AEI report, “Free Inquiry and
Federally Funded Research.”
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 | Tuesday, October 31, 2017
THE INTELLIGENT FUTURE
WILL BE STREAMED LIVE
WEDNESDAY, NOVEMBER 1ST
2PM ET/11AM PT
yext.com/ONWARD
THE WALL STREET JOURNAL.
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
TECHNOLOGY: TOYOTA WANTS YOUR CAR TO BE YOUR PAL B5
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2572.83 g 0.32%
S&P FIN g 0.48%
S&P IT À 0.40%
Tuesday, October 31, 2017 | B1
THE WALL STREET JOURNAL.
* * * **
DJ TRANS g 1.30%
WSJ $ IDX g 0.29%
NIKKEI (Midday) 21933.52 g 0.36% See more at WSJMarkets.com
LIBOR 3M 1.377
Deal Creates Largest Home Builder
Takeover by Lennar
comes as industry
faces rising costs for
land, labor, materials
BY CHRIS KIRKHAM
AND LAURA KUSISTO
Apple to
Stop Using
Chips From
Qualcomm
BY TRIPP MICKLE
AND DANA MATTIOLI
Apple Inc., locked in an intensifying legal fight with Qualcomm Inc., is designing iPhones
and iPads for next year that
would jettison the chip maker’s
components, according to people familiar with the matter.
Apple is considering building
the devices only with modem
chips from Intel Corp. and possibly MediaTek Inc. because
San Diego-based Qualcomm has
withheld software critical to
testing its chips in iPhone and
iPad prototypes, according to
one of the people.
Qualcomm,
which
has
worked with Apple for a decade, stopped sharing the software after Apple filed a federal
lawsuit in January accusing
Qualcomm of using its market
dominance unfairly to block
competitors and to charge exorbitant patent royalties, this person said. Qualcomm has said
Apple is mischaracterizing its
practices.
Apple’s planned move for
next year involves the modem
chips that handle communications between wireless devices
and cellular networks. Qualcomm is by far the biggest supplier of such chips for the current wireless standard.
Qualcomm said its “modem
that could be used in the next
generation iPhone has already
Please see APPLE page B5
BY DEEPA SEETHARAMAN
BLOOMBERG
Lennar Corp. agreed to buy
CalAtlantic Group Inc. for $5.7
billion, creating the country’s
largest home builder by revenue in the latest affirmation of
a U.S. economic expansion now
in its ninth year.
The proposal marks the
largest merger of home builders since the financial crisis, a
milestone for the recovery of
an industry that was hard hit
by the housing collapse last
decade but has contributed
significantly to U.S. growth in
recent years.
The deal would create a
combined company with revenues of more than $17 billion as
of last year and a market cap of
roughly $18 billion, based on
Friday’s closing share prices.
Major home builders are
looking to control rising costs
for land, labor and materials
as the U.S. housing market expansion continues. Builders increasingly are focusing on
first-time home buyers purchasing less-expensive homes,
which has put pressure on
profit margins.
Lennar Chief Executive Stuart Miller said the combination
would increase Lennar’s presence in markets it already operates in and allow it to be one
of the top three home builders
in 24 of the top 30 markets in
the country.
On a conference call Monday,
Lennar executives pointed out
that the two companies compete in many of the same markets. With more scale, they said
they can lower costs by negoti-
Russian
Agitators
Organized
Rallies on
Facebook
Builders increasingly are focusing on first-time home buyers purchasing less-expensive homes. A Lennar construction site in Florida.
Housing Giant
Lennar and CalAtlantic would combine to form the largest homebuilder in the U.S. in terms of revenue and production.
2016 revenue, billions
Homes delivered, 2016
$17.4
Lennar/CalAtlantic Group
D.R. Horton
PulteGroup
NVR
Toll Brothers
KB Home
Taylor Morrison Home
Meritage Homes
Hovnanian Enterprises
$12.2
$7.7
$5.7
$5.2
$3.6
$3.5
$3.0
$2.8
Lennar/CalAtlantic Group
D.R. Horton
PulteGroup
NVR
KB Home
Taylor Morrison Home
Meritage Homes
Hovnanian Enterprises
Toll Brothers
40,792
40,309
19,951
14,928
9,829
7,369
7,355
6,712
6,098
THE WALL STREET JOURNAL.
Sources: FactSet; staff reports
ating better deals with construction crews and suppliers.
“It should be no surprise
that the more you buy, the less
you pay,” said Lennar President
Rick Beckwitt.
The companies expect the
deal to generate $250 million in
annual cost savings by the 2019
fiscal year and roughly $75 million in fiscal 2018.
In acquiring CalAtlantic, Lennar will have access to a new
supply of developable land that
can be built on quickly, which is
less risky than buying large
tracts of undeveloped land that
could take years to get permits.
Analysts agree that a larger
company will better be able to
navigate increasing construc-
tion costs, which have outpaced price increases of new
homes every quarter over the
past three years, according to
data from John Burns Real Estate Consulting, which tracks
Please see LENNAR page B2
GE Numbers Game Puzzles Investors
Under the Hood
BY MICHAEL RAPOPORT
The conglomerate’s complex accounting includes multiple earnings measures, rising contract assets
subject to its own assumptions and a change making cash-flow conversion look stronger.
What are General Electric
Co.’s earnings? The question
doesn’t have a single answer—
the company recently provided
four different versions of them.
Investors have long grumbled about complex, aggressive
accounting at GE, while the Securities and Exchange Commission has questioned some practices, too. A lack of faith in
GE’S numbers has left it with
dwindling support and goodwill
from investors after GE on Oct.
20 missed third-quarter earnings estimates and slashed its
2017 earnings outlook by more
than a third.
GE shares have lost more
than 13% since then, tumbling
to their lowest level in nearly
Please see GE page B2
Contract assets on GE's
balance sheet
General Electric earnings per share, quarterly
Industrial
operating
earnings
$30 billion
20
$0.70
10
0
Industrial
operating
earnings +
verticals
GAAP income
continuing
operations
GAAP net
income
0.60
’15 ’16
’17
Industrial free-cash flow conversion
rate under GE's old method ( )
and new method ( )*
91%
96%
2014
2015
82
99
2016
0.50
0.40
0.30
0.20
0.10
0
76
91
’15
’17
’15
’17
’15
’17
’15
’17
*Percentage of operating earnings converted into free cash flow under new methodology adopted by GE in May 2017.
THE WALL STREET JOURNAL.
Source: the company
STREETWISE | By James Mackintosh
Betting on Next Fed Chief Often Backfires
President
Donald
Trump’s “The
Apprentice”style hiring
process for the
Federal Reserve chairmanship
is due to end this week, and it
looks like the message to
Janet Yellen is: “You’re fired!”
Jerome Powell, a Fed governor, is the leading candidate to take the world’s leading economic job—and he
isn’t an economist.
Investors following the
process have been raking over
the past pronouncements of
the five main candidates, in
an effort to understand the
direction of Fed policy over
the next four years. History
suggests that it is tough to
make money from betting on
a new chairman’s hawkishness or dovishness, even if
you knew who it was going to
be.
Political betting site PredictIt has Mr. Powell’s
chances at 80%, with Ms. Yellen at 8% and academic economist John Taylor at 7%. Outsiders include former
governor Kevin Warsh; Federal Reserve Bank of Minneapolis President Neel Kashkari; and Gary Cohn, Mr.
Trump’s top economic adviser.
Assuming you knew who
the president would pick, the
most obvious ways to make
money would be bets on the
direction of Treasury bonds
and the dollar, and perhaps
inflation-sensitive gold. The
clearest example of bets on a
Fed chairman was in August
1979, when President Jimmy
Carter appointed the hawkish
Paul Volcker in a sharp break
with his predecessor during
the inflationary 1970s.
Investors expected Mr. Volcker to tackle runaway inflation with tighter monetary
policy, meaning higher shortterm rates, and they were
right. But after his appointment, many bet that a Fed
chairman committed to bringing down inflation meant
lower long-term bond yields,
a lower gold price and a
stronger dollar. They made
money for about two weeks,
before being crushed.
As inflation soared Mr.
Volcker stayed true to forecasts, and short-term rates
peaked at 22%, the highest
ever, pushing the U.S. into
double-dip recessions. Contrary to the expectations of
Please see STREET page B10
Workers behind Russianlinked Facebook Inc. accounts
helped organize or finance
real-life events before and after the 2016 election, often
working directly with U.S. activists and playing both sides
of the same hot-button issue—
even on the same day.
In July 2016, as outrage
swelled over fatal shootings in
Dallas and Minneapolis, alleged social-media agitators
tied to Russia worked quickly
to capitalize on the emotionally charged atmosphere.
Workers linked to a Russiabased firm organized two
gatherings, both for July 10: In
Dallas, a “Blue Lives Matter”
rally honored the five police
officers slain there on July 7;
and near Minneapolis, nearly
300 people rallied in support
of Philando Castile, a man fatally shot by a police officer
during a traffic stop.
The events show that the
Russian-linked account activity went far beyond paying
for polarizing ads dropped
into Facebook members’ news
feeds. At least 60 rallies, protests and marches were publicized or financed by eight
Russia-backed Facebook accounts from Los Angeles to
Washington, D.C., according
to a review by The Wall
Street Journal, which looked
at archived versions of nowdeleted Facebook posts and
interviewed activists, attendees and others familiar with
the events, most of which
were posted on Facebook.
Facebook said in September
that it had found 470 such accounts that it says belonged to
Russians and that sought to
exploit social divisions in the
U.S. through provocative issue
ads. The eight accounts the
Journal examined are among
those Facebook unearthed, according to people familiar
with the matter. Facebook said
it closed the accounts.
Much of the scrutiny of the
Russian accounts so far has focused on their online activity,
but the live events demonstrate
Please see EVENTS page B4
126M
The number of people
Facebook estimates may have
seen content posted by
Russian-backed accounts ... B4
INSIDE
‘HOUSE OF
CARDS’ ENDS
AMID SCANDAL
MEDIA, B3
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 | Tuesday, October 31, 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.
B
Bank of America.......B11
Braskem ...................... B6
C
CalAtlantic Group.......B1
Campbell Soup............B3
Canada Jetlines .......... B2
Capella Education.......B3
Cerberus Capital
Management.............B6
Clariant........................B6
Coca-Cola.....................B3
Comerica....................B11
Corning......................B12
Corvex Master Fund...B6
D
Deutsche Bank..........B10
Dynegy ........................ B5
E
Elliott Management ... B6
EnerJet........................B2
F
Facebook................B1,B4
Flair Airlines...............B2
40 North Latitude
Master Fund.............B6
G
General Electric .......... B1
General Mills...............B3
Guotai Junan Securities
...................................B10
H
Hainan Airlines Holding
...................................B10
Hershey.......................B3
HNA Group................B10
Home Depot................A1
HSBC ......................... B10
Huntsman....................B6
I-J
Intel.............................B1
J.C. Penney................B11
J.P. Morgan Chase....B11
K-L
Kobe Steel...................B5
Kohl's.........................B11
Lennar ......................... B1
LyondellBasell
Industries..................B6
M
Macy's.......................B11
McCain Foods..............B3
MediaTek.....................B1
Merck &.....................B11
Micron Technology....B12
Mondelez International
.....................................B3
N
Netflix.........................B3
NewLeaf Travel...........B2
New York Community
Bank........................B11
Nintendo....................B11
Nordstrom.................B11
Novartis.......................B5
O
Office Depot................B6
P
Platinum Equity..........B6
PPG Industries............B6
Q
Qualcomm...................B1
S
Samsung Electronics..B5
Sony...........................B11
Staples........................B6
Strayer Education.......B3
SunTrust Banks ........ B11
Sycamore Partners.....B6
T
Toyota Motor..............B5
Travelers....................B12
Twitter ........................ B4
V
Vistra Energy..............B5
W-Y
WestJet Airlines ........ B2
White Tale Holdings...B6
Yue Xiu Securties.....B10
INDEX TO PEOPLE
A
H
Asami, Takao .............. B5
Han, Qin....................B11
R
B
K
Rosenfeld, Irene ......... B3
Batory, Ronald............B2
Beckwitt, Rick.............B1
Blavatnik, Len.............B6
Kokonis, Robert..........B2
S
L
Shuai, William............B4
Silberman, Robert ...... B3
Sims, Ed......................B2
Stretch, Colin..............B4
C-D
Coard, David..............B11
Donabedian, Dave.....B11
E-F
Edgett, Sean...............B4
Flint, John.................B10
Franke, Bill..................B2
G
Gadek, Stan ................ B2
Gates, Rick..................A4
Gulliver, Stuart.........B10
Qin, Han....................B11
Leroy, Didier................B5
M
Mackay, Iain..............B10
McGratty, Christopher
...................................B11
Miller, Jamie...............B2
Miller, Stuart..............B1
Millstone, David ......... B6
Mullaney, Michael .... B12
Mulliner, Andrew......B11
P-Q
Put, Dirk Van de.........B3
GE
Continued from the prior page
five years. The stock is now
down more than 35% year to
date; the S&P 500 has risen
about 15%. GE shares closed
Monday at $20.41, down 1.8%,
their sixth straight daily loss.
Topping investor concerns is
GE’s heavy use of customized
earnings metrics—the company
has four different measures of
earnings per share in its thirdquarter earnings release. These
range from plain net income to
“industrial operating + verticals
earnings,” and GE also reports
customized measures of revenue, margins and cash flow.
Analysts also fret over how
GE handles contract assets—
revenue the company books on
long-term contracts before it
has the cash in hand—and its
ability to turn earnings into
cash flow.
“Everybody knows there’s a
13%
Decline in General Electric’s stock
price since Oct. 20
problem,” said John Inch, a
Deutsche Bank analyst who
has been critical of GE over
the quality of its earnings and
disclosure. “If you want to rebuild from whatever the business turns out to be, you need
to have conviction the numbers GE is putting up are real
numbers.”
GE is re-evaluating its earnings metrics and is looking to
take “a back-to-the-basics approach” to its financial reporting, Jamie Miller, GE’s incoming finance chief, said during
the company’s recent earnings
call.
In a statement, GE said complexity in its accounting was
“due to the scale and breadth
of our operations.” Additionally, the company said
its moves to sell most of its GE
Capital finance arm have affected financial results and led
it to provide additional metrics.
From now on, “we anticipate
needing to use fewer metrics
and therefore will have less
complexity going forward,” GE
said. The company said it plans
to provide more details on Nov.
13.
GE’s streamlining of its accounting is expected to be part
of a broader overhaul, in which
the company has said it plans
to sell more than $20 billion in
assets over the next year or
T
Tucker, Mark.............B10
W
Walker, Kent...............B4
Walter, Glen................B3
Winter, David..............B6
Z
Zhang, Xin.................B11
Zuckerberg, Mark ....... B4
two and cut billions of dollars
in costs. The company is under
pressure to improve its performance from activist investor
Trian Fund Management LP,
which owns about 71 million GE
shares and was recently given a
seat on the board.
Of its different measures,
the one GE focuses on most in
its earnings reports is industrial operating + verticals earnings, which exclude certain
pension costs and businesses
the company expects to sell.
In the third quarter, GE had
earnings of $1.9 billion from
continuing operations. But it
then took out $371 million in
pension costs such as interest
expenses and expected return
on assets and added in only
$299 million in “Verticals”
earnings—from the slice of GE
Capital that the company plans
to retain. The result: Industrial
operating + Verticals earnings
were $2.55 billion.
GE also reports customized
metrics like “industrial segment organic revenues,” “industrial operating margin” and
“industrial cash flows from operating activities,” with and
without certain items.
The SEC has focused on GE’s
non-GAAP reporting and said in
a June 2016 comment letter to
the company that investors
“may find it difficult to understand the differences” among
measures and how each provides useful information. In a
July 2017 letter, the SEC said
GE’s practice of lumping together in a single line item all
its non-GAAP adjustments
“makes it difficult to fully understand the nature and
amounts of each of the adjustments.”
In both cases, GE agreed to
change disclosures. The SEC
completed its inquiries without
taking action.
Another area of concern is
how GE accounts for its $29.8
billion portfolio of assets relating to long-term equipment
and product-service contracts. That portfolio has
grown by 18% this year, as GE
adjusts estimates and assumptions about how much profit it
will ultimately reap from those
contracts. Such adjustments
added $2.2 billion to GE’s earnings in 2016, the company said
in its annual report.
Some analysts are concerned
because GE provides little visibility into those estimates and
assumptions—and because the
company’s actions can boost its
earnings but not current free
cash flow.
GE says its contract assets
have grown significantly for
valid reasons and that ultimately all the assets will turn
into cash for the company.
Budget Airlines Cruise Into Canada
BY DAVID GEORGE-COSH
TORONTO—Low-cost airlines, taking off around the
globe, have been in a holding
pattern in Canada.
But thanks to a change in
government regulations, a trio
of upstarts is set to break into
the country’s air-travel market,
in a move that could challenge
the duopoly of the main Canadian operators, Air Canada and
WestJet Airlines Ltd.
The new, ultralow-cost carriers could also drain market
share from a handful of American airlines catering to Canadians with cheap flights at U.S.
airports near the border.
Canada Jetlines Ltd., a new
airline based in Vancouver, British Columbia, plans to start flying out of smaller airports near
Toronto next year, with fares
that should “cost less than a
pair of jeans,” or under $100,
says Chief Executive Stan
Gadek.
Flair Airlines Ltd., meanwhile, relaunched its ultralowcost venture this year after acquiring the assets of defunct
NewLeaf Travel. The airline
based in Kelowna, British Columbia, plans to add three cities to its flight schedule and
triple its fleet of Boeing
737-400 jets to six by the end
of the year.
And Bill Franke, who helped
pioneer the ultralow-cost carrier segment in the U.S., is pursuing a tie-up with EnerJet, a
charter airline based in Calgary,
Alberta. The deal, valued at
roughly 80 million Canadian
dollars, or US$62.5 million, is
awaiting the Canadian government’s approval.
MARK BLINCH/REUTERS
A
Advanced Accelerator
Applications..............B5
Air Canada .................. B2
Akzo Nobel..................B6
Alphabet...........A1,B4,B5
Apple.......B1,B5,B11,B12
Axalta Coating Systems
.....................................B6
Air Canada plans to offer ultralow fares on some routes as discount carriers enter the marketplace.
“We’re firm believers that
the lowest cost ultimately wins
in the low-cost segment, so our
objective is to present the lowest-cost and lowest-fare airline
in the marketplace,” Mr. Franke
said.
The influx of competition
comes after the Canadian government last year raised foreign ownership limits on domestic carriers to 49% from
25%, and as the local air-travel
market, valued at C$19 billion,
grows. Last year, 43 million
passengers flew domestically,
up 15% from the previous five
years, according to Statistics
Canada. As more rock-bottom
prices are offered, Intervistas
Consulting Group estimates
that 10 million more people will
fly more frequently.
Two carriers still need to
raise a minimum of C$50 million to be deemed “financially
fit” to operate by regulators.
Canada Jetlines is conducting
an investor roadshow to raise
between C$50 million and C$75
million. EnerJet, meanwhile, expects regulators to accept the
terms proposed by Mr. Franke
by year-end.
The upstarts say they plan to
not only lure budget-conscious
fliers from WestJet and Air
Canada, but also from American
carriers such as Allegiant Air
and Frontier Airlines Inc.,
which have drawn Canadians to
border airports such as Buffalo,
N.Y., and Burlington, Vt., with
cheap fares.
Robert Kokonis, an analyst
at airline consultancy AirTrav
Inc., estimates that 500,000
passengers, or about 10% of Canadian traffic lost to U.S. border airports, could be handled
by the low-cost carriers over
the next year.
WestJet, which got its start
as a no-frills airline, plans to
combat the new airlines with
an ultralow-cost carrier of its
own. Swoop, which will begin
flights next June, “is our ability
to encourage Canadians to
travel,” said Ed Sims, executive
vice president of WestJet’s
commercial business. “But it’s
also a means to ensure that we
have a very competitive brand
stacked up against these new
entrants.”
Offshore Oil’s Ally Oversees Safety
BY TED MANN
WASHINGTON—As a Louisiana state official, Scott Angelle
made his name fighting
against a moratorium on offshore oil production that followed the catastrophic 2010
Deepwater Horizon blowout, in
which 11 workers were killed.
Mr. Angelle says he puts a
priority on the safety of the
offshore oil business. But he
also says his mission as director of the Bureau of Safety and
Environmental Enforcement is
to “drive performance” in the
offshore oil-and-gas industry
and to improve relations with
drillers. He is one of a number
of Trump administration regulators who have represented
the interests of industries they
now oversee.
Among others, Ronald Batory, a veteran freight-railroad
executive, is running the Federal Railroad Administration,
the safety regulator for freight
and passenger railroads. Michael Dourson, poised to be
confirmed by Senate Republicans as assistant administra-
tor at the Environmental Protection Agency, is a scientist
whose former consulting firm
has been supported by chemical companies whose products
are regulated by the EPA.
Mr. Angelle favors a personal touch. He hands out
miniature bottles of Tabasco
sauce to visiting executives—
in honor of his Cajun roots—
and at an industry conference
in Lafayette, La., last month,
he announced his phone number from a stage.
Mr. Angelle, in an interview
in his office this month, said
he can do a better job improving BSEE’s operations and
monitoring risk if companies
feel free to contact him freely
and frequently. “Sitting at the
table to discuss is not weakness, that’s strength,” he said.
“I’m comfortable that we can
reject that which we don’t
agree with, but listening, and
then also responding, I think
is smart.”
Chief among Mr. Angelle’s
goals is rolling back portions
of the so-called well-control
rule, the regulatory fix BSEE
made across a range of underwater-drilling activities in
response to Deepwater Horizon.
Trade groups are asking
BSEE to tweak the rule. Mr.
Angelle declined to say what
industry-sought changes, if
any, he would endorse, but
agency staffers have begun
drafting a package of changes.
Mr. Angelle’s
overtures to industry
have concerned some
agency staffers.
Mr. Angelle’s overtures to industry have concerned some
current and former agency
staffers, including some who
met with him when he was Louisiana’s lieutenant governor and
later was on the state’s Public
Service Commission, as he advocated policies more beneficial
to some of the companies.
“The rules are pretty strict,
and you have to do this the
right way,” said Brian Salerno,
the final director of BSEE under the Obama administration.
“You don’t have ability for
people to come in and privately influence you.”
Mr. Angelle said the access
he offers helps him understand companies’ experiences.
“We like to get to people who
can give us what it is they’ve
experienced, as opposed to ‘I
told somebody, who I told
somebody, who I told somebody,’ and then now I’ve got it
fifth-hand,” he said.
His approach has drawn
cheers from the industry along
the Gulf Coast.
“The fact he has an oil-andgas background, I think that
goes a long way in terms of
knowing industry, understanding the industry, and being
able to work with the industry,” said Lori LeBlanc, executive director of the Gulf Economic Survival Team, a trade
association formed with help
from Mr. Angelle to fight the
moratorium after Deepwater
Horizon.
Slow Climb
After a sharp decline last decade, single-family home construction has
slowly rebounded.
2.0 million units
U.S. single-family home construction*
1.5
1.0
0.5
0
2006 ’07
’08
’09
’10
’11
*Seasonally adjusted
Source: U.S. Census Bureau
LENNAR
Continued from the prior page
the industry.
Facing construction-labor
shortages in many markets,
builders have to compete for
the best crews. More scale
means steadier work for construction crews, which analysts
said would give the combined
company an advantage in negotiations.
“The bigger you are, certainly the better-positioned you
are in that market,” said Credit
Suisse home building analyst
Susan Maklari. “You can say
‘It’s not worth leaving me and
going to another builder’s
site.’”
Home builders struggled
through the 2007-09 recession
and the early economic recovery as millions of Americans
faced foreclosures and unemployment. Single-family home
construction has only recently
begun to surpass the prior 30year average, but home build-
’12
’13
’14
’15
’16
’17
THE WALL STREET JOURNAL.
ers over the past year have reported a return of first-time
buyers to the market as economic conditions improve.
The homeownership rate hit
63.7% in the second quarter, a
jump of nearly a full percentage
point from a year earlier, according to the Census Bureau.
Younger households helped
drive that improvement: The
homeownership rate for households headed by someone under 35 years old jumped to
35.3% from 34.1% a year earlier.
Still, these households are
particularly
price-sensitive,
placing additional pressure on
builders to control costs and
keep the price of these homes
at a level first-time buyers can
afford. More home buyers
means more sales for home
builders, but it is difficult to
maintain the same kind of
profit margins generated by
high-end luxury-home sales
that dominated the early years
of the economic recovery.
The deal is subject to approval by shareholders.
—Cara Lombardo
contributed to this article.
come
out of
your shell.
With the right investment philosophy,
you don’t need to be shy about global
investing. Ariel offers mutual funds and
separate accounts spanning the market
cap spectrum and covering the globe.
arielinvestments.com/think-global
Investors should consider carefully the investment objectives, risks, and
charges and expenses before investing. For a current summary prospectus
or full prospectus which contains this and other information about
the funds offered by Ariel Investment Trust, call us at 800.292.7435.
Please read the summary prospectus or full prospectus carefully
before investing. Distributed by Ariel Distributors, LLC, a whollyowned subsidiary of Ariel Investments, LLC. Ariel Distributors, LLC is a
member of the Securities Investor Protection Corporation. WSJ ©2017
Slow and steady wins the race.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 31, 2017 | B3
* *
BUSINESS NEWS
BY ANNIE GASPARRO
AND IMANI MOISE
Mondelez International
Inc. reported rising thirdquarter sales as Americans ate
more snacks and business improved in emerging markets.
The maker of Oreo cookies,
Wheat Thins crackers and Trident gum said sales rose 2.8%
in the quarter on a comparable basis, and that per-share
profit jumped 12%, excluding
certain one-time events and
currency fluctuations.
“We’re encouraged as we
see macro trends that have
been headwinds over the past
several quarters turn more favorable,” said Chief Executive
Irene Rosenfeld, who is stepping down on Nov. 20.
Mondelez’s stock was up
about 4% after hours on Monday. Through the market close,
shares are down 11% this year.
Mondelez and other big food
companies have struggled as
U.S. consumers have shifted to
foods perceived as healthier.
Hershey Co. also reported
higher-than-expected earnings
Sales Growth
Mondelez comparable sales,
change from previous year*
5%
4
3Q 2017
+2.8%
3
2
1
0
–1
–2
–3
2015
’16
’17
*Excludes the impact of acquisitions,
divestitures and currency changes.
Source: the company
THE WALL STREET JOURNAL.
last week, while rivals like General Mills Inc. and Campbell
Soup Co., which sell more packaged and canned meals rather
than candy and snacks, have
been battered by declining sales.
Like its peers, Mondelez
has faced pressure from investors to boost profit margins
amid slowing sales in the U.S.
Ms. Rosenfeld has reduced
spending in recent years by
closing factories and cutting
back on things like corporate
travel. Mondelez’s adjusted
operating margin—a key metric indicating profitability—
rose to 16.9% in the quarter
from 15.6% the prior year.
Mondelez has created new
brands like Véa crackers and
belVita breakfast cookies,
which it says have attracted
more health-focused consumers. In the latest quarter, sales
in North America rose 1.3%,
indicating that snack-focused
companies are faring better in
the more competitive food retail environment.
Mondelez has also looked
for growth abroad. In the most
recent quarter, sales in emerging markets jumped 4.5% to
$2.45 billion, representing over
a third of its total revenue.
Ms. Rosenfeld, who is stepping down after leading the
company for 11 years, will be
succeeded by Dirk Van de Put,
CEO of Canadian company McCain Foods. Last week, Mondelez also named Coca-Cola
Co. executive Glen Walter to
head its North America business beginning in November.
Mondelez reported an overall profit of $992 million. Adjusted income, excluding onetime events, was 57 cents a
share, compared with 50 cents
a share a year ago. Revenue
rose 2.1% to $6.53 billion. Analysts polled by FactSet had expected adjusted earnings of 54
cents a share on revenue of
$6.44 billion.
‘House of Cards’ Comes to an End Amid Scandal
DAVID GIESBRECHT/NETFLIX/EVERETT COLLECTION
Mondelez Gains
As Americans
Snap Up Snacks
Netflix Inc. plans to end the
political drama “House of Cards”
after the end of season 6, which
is currently in production, a person familiar with the situation
said.
The decision was made before reports about alleged sexual
misconduct by star Kevin
Spacey, the person said. In a
BuzzFeed article Sunday, actor
Anthony Rapp alleged that Mr.
Spacey had made a sexual ad-
vance toward him when he was
14 years old. Mr. Spacey, who is
58 now, was 26 at the time, the
article said.
“Media Rights Capital and
Netflix are deeply troubled by
last night’s news concerning
Kevin Spacey,” Netflix and Media
Rights Capital, the studio that
makes the show, said Monday in
a joint statement. “In response
to last night’s revelations, executives from both of our compa-
nies arrived in Baltimore this afternoon to meet with our cast
and crew to ensure that they
continue to feel safe and supported. As previously scheduled,
Kevin Spacey is not working on
set at this time.”
Mr. Spacey, in a Twitter post
Sunday night, said he didn’t recall the alleged encounter, which
would have happened more than
three decades ago.
“I’m beyond horrified to hear
his story,” Mr. Spacey wrote. “I
honestly do not remember the
encounter…But if I did behave
then as he describes, I owe him
the sincerest apology for what
would have been deeply inappropriate drunken behavior.”
“As those closest to me
know, in my life I have had relationships with both men and
women,” Mr. Spacey wrote, “and
I choose now to live as a gay
man.”
—Maria Armental
Education Companies Will Merge
BY DANA MATTIOLI
Strayer Education Inc. will
merge with Capella Education
Co. in a move that would create a for-profit education company valued at nearly $2 billion.
A deal between the companies will be structured as a
stock-for-stock merger. Capella
shareholders will receive a
premium and will own about
48% of the combined company.
Strayer shareholders will own
about 52%. The deal has been
unanimously approved by both
companies’ boards and is ex-
pected to close in the third
quarter of 2018, a news release announcing the deal
Monday morning said.
The Wall Street Journal
first reported the companies’
plans to merge Sunday night.
Strayer, based in Herndon,
Va., offers online and campusbased certificates and degrees
including M.B.A.s. The university was founded in 1892 and
caters to working adults completing their degrees. It has a
market value of about $1 billion after its stock rose about
63% in the past year.
As part of the deal, Strayer
will change its name to Strategic Education Inc. and will
continue to trade under the
ticker STRA, Monday’s news
release said.
Minneapolis-based Capella
has a market value of about
$765 million after its stock fell
7% in the past year. The company, founded in 1991, offers
online degrees targeted at
working adults. As of June 30,
the school had about 37,600
students, more than 70% pursuing master’s or doctoral degrees, according to the company’s website.
The combined company will
be based in Herndon but have
a “significant presence” in
Minneapolis, the release said.
Capella will get to nominate
three people to Strayer’s
board, which will now have a
dozen directors.
Karl McDonnell, Strayer’s
current chief executive, will be
chief executive officer.
“This transaction will enhance our collective ability to
deliver better academic outcomes, to more working
adults, at more affordable
prices,” said Strayer Executive
Chairman Robert Silberman in
the release.
YOUR LENS DETERMINES YOUR PERSPECTIVE
BROADEN YOUR EXPOSURE
Develop a truly global
investment portfolio.
U.S. investors tend to put their money where
they are most comfortable, commonly leading
to a home bias in portfolios. Our proprietary
database of thousands of client portfolios shows
average overseas allocations at only half the size
of the actual overseas markets.
Not only does international exposure offer
diversification across geographies, it adds the
benefit of exposure across a broad range of
sectors and currencies.
Janus Henderson has the expertise to help you
develop a truly global investment portfolio.
Global Equity Income Fund (HFQIX)
·
International Opportunities Fund (HFOIX)
·
Emerging Markets Fund (HEMIX)
To learn more about our insights, visit
blog.janushenderson.com
Please consider the charges, risks, expenses and investment objectives carefully before investing. For a prospectus or, if available, a summary prospectus containing this and
other information, please call Janus Henderson at 800.668.0434 or download the file from janushenderson.com/info. Read it carefully before you invest or send money.
Investing involves risk, including the possible loss of principal and fluctuation of value.
Foreign securities are subject to additional risks including currency fluctuations, political and economic uncertainty, increased volatility, lower liquidity and differing financial and information reporting standards,
all of which are magnified in emerging markets.
Diversification neither assures a profit nor eliminates the risk of experiencing investment losses.
Janus Henderson is a trademark of Janus Henderson Investors. © Janus Henderson Investors. The name Janus Henderson Investors includes HGI Group Limited, Henderson Global Investors (Brand Management) Sarl and
Janus International Holding LLC. Janus Henderson Distributors.
C-0917-12272 09-15-18
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 | Tuesday, October 31, 2017
* ***
THE WALL STREET JOURNAL.
TECHNOLOGY
WSJ.com/Tech
More Russian Social-Media Posts Found
Facebook, Google and
Twitter find the scope
of manipulation was
broader than thought
BY DEEPA SEETHARAMAN
AND GEORGIA WELLS
Facebook Inc., Alphabet
Inc.’s Google and Twitter Inc.
are set to divulge new details
showing that the scope of Russian-backed manipulation on
their platforms before and after the U.S. presidential election was far greater than previously disclosed, reaching an
estimated 126 million people
on Facebook alone, according
to people familiar with the
matter, prepared copies of
their testimonies and a company statement.
Facebook estimates that
470 Russian-backed accounts
connected to a single proKremlin firm, the Internet Research Agency, churned out
80,000 posts on Facebook between January 2015 and August 2017, the social-media
company plans to tell congressional investigators Tuesday,
according to an advance copy
of the remarks obtained by
The Wall Street Journal. Facebook previously had focused
narrowly on the 3,000 advertisements spread by the 470
accounts.
Twitter, meanwhile, has
identified and removed 2,752
accounts linked to the Internet
Research Agency, according to
a source familiar with Twitter’s testimony, significantly
more than the 201 accounts it
identified in an initial review
last month.
Twitter’s initial disclosure
in September spurred criticism
from lawmakers who are pushing for greater transparency
from internet companies over
how their platforms are manipulated.
Google said in a blog post
Monday it has discovered 1,108
videos uploaded to its YouTube video site, which were
viewed a total of 309,000
times in the U.S. from June
2015 to November 2016, by accounts linked to Russian operatives. The videos encompass
43 hours of content from 18
different English-language accounts, it said. In addition,
Google said two accounts
linked to the Internet Research
Agency spent $4,700 on search
and display ads during the
2016 elections.
The disclosures came on the
eve of representatives from
Facebook, Twitter and Google
Breaking Down
The Tweets
Nearly 10% of the tweets
from the 2,752 accounts from
Sept. 1, 2016 through Nov. 15,
2016, were election-related,
and about half of their
tweets were automated, according to a source familiar
with Twitter’s testimony.
During this time, these acappearing in front of a Senate
committee to explain how Russian entities allegedly used
their platforms to disrupt
American society.
“Many of the ads and posts
we’ve seen so far are deeply
disturbing—seemingly
intended to amplify societal divisions and pit groups of people
against each other,” Facebook
General Counsel Colin Stretch
plans to say, according to the
prepared remarks. “They
would be controversial even if
they came from authentic accounts in the United States.
But coming from foreign actors using fake accounts they
are simply unacceptable.”
Mr. Stretch, Twitter’s acting
general counsel Sean Edgett and
counts sent about 1.4 million
automated tweets related to
the election.
As a part of Twitter’s review, the company also identified nine accounts that were
linked to Russia and promoted election-related content that violated Twitter’s
ad policies. Twitter last week
announced it will no longer
run ads from two of these
accounts, Russian-backed
news outlets RT and Sputnik.
Google General Counsel Kent
Walker are scheduled to testify
in Congress a second time on
Wednesday. They are due to
present in front of the House
and Senate intelligence committees, which both are conducting
probes of Russian activity during the 2016 election to uncover
what happened during the campaign for president.
Twitter plans to give committee investigators the account names of the 2,752 accounts related to the Internet
Research Agency, and the company is also taking steps to
block future registrations related to these accounts, the
source says.
The new disclosures come
as the tech industry is facing
the threat of regulation. Tech
companies are expected to face
tough questions about their ad
disclosure policy and their opposition to greater regulation.
Sen. Amy Klobuchar (D.,
Minn.)—who has proposed a
bill that would toughen disclosure rules for political advertising online—is expected to
press the companies on their
objections to regulation, according to a person with
knowledge of the senator’s
plans.
In his testimony, Mr. Stretch
plans to say that “any amount”
of fake or malicious activity is
“too much,” while at the same
time playing down its importance, according to the prepared remarks. Mr. Stretch
planned to argue that these
posts were a small fraction of
the content consumed by
Americans during the period—0.004% of posts, or one
out of 23,000 pieces of content
on Facebook.
The testimonies come
nearly a year after the Nov. 8
election. Facebook faced scathing criticism immediately following the election for allowing
misinformation
and
fabricated news articles to run
rampant on its platform and
harm political discourse.
Over the summer, Facebook
said it had no evidence of malicious Russian activity on its
site before revealing on Sept. 6
that the IRA, a Russian outfit
that shares pro-Kremlin views
online, spent $100,000 on ads
on the platform between June
2015 to May 2017.
Facebook learned from
“press accounts and statements by congressional leaders” after the election that
Russian entities might have
exploited its ad tools to interfere in the election, according
to the prepared remarks. In
October 2016, Facebook disabled about 5.8 million fake
accounts in the U.S., but the
sweep missed the 470 accounts unearthed by the company a year later, the remarks
say.
Critics including lawmakers
said the accounts likely had
much broader scope including
their organic content, such as
free posts and events listings.
Facebook has said the ads and
posts were meant to exploit
social and political divisions in
the U.S. Facebook previously
said roughly 10 million people
saw those ads. On Tuesday, the
company plans to update that
figure to 11.4 million.
—Douglas MacMillan
and Byron Tau
contributed to this article.
Continued from page B1
how the alleged use of social
media by Russian forces served
as a launchpad for deeper infiltration into the American
democratic process. Many
rallies were sparsely attended, but some attracted
news coverage, helping the
accounts seem legitimate, add
followers and enlist activists
to plan future events.
People representing “Black
Matters US,” one of the Russia-backed accounts, pressured Los Angeles activist
Nolan Hack to plan events
that would raise the account’s visibility. “They’d
say, we need to continue to
up the protest numbers. We
need to continue to get more
people to know about us,”
Mr. Hack said. “I would say—
who cares about that? We’re
not trying to win a reality
show here.”
At least 22 of the 60
events actually took place,
such as a May 2016 protest of
an Islamic center in Houston
planned by “Heart of Texas,”
a Russia-created page that
supported Texas secession
and posted the “Blue Lives
Matter” rally in Dallas two
months later. On June 25,
2016, following the shooting
at the Pulse nightclub in Orlando, Fla., “LGBT United” organized a candlelight vigil,
where one of the victims’
brothers spoke. Both were
covered by local media and
attracted a dozen or more attendees.
It is unclear if the other 40
or so events occurred as publicized. Collectively, the eight
accounts analyzed by the
Journal were “liked” nearly
two million times, archived
websites show.
“Getting someone to physically show up somewhere is
huge,” said Sarah Oates, a political communications pro-
JEFF WHEELER/STAR TRIBUNE/ASSOCIATED PRESS
EVENTS
A rally in Minnesota that took place in July 2016. It was among many demonstrations that summer over hot-button social issues.
fessor at the University of
Maryland. “That is a level of
political commitment that is
a whole degree stronger than
getting someone to comment.”
This week, executives from
Facebook, Twitter Inc. and
Alphabet Inc.’s Google are
scheduled to appear before
Congress to answer questions
about Russian activity found
on their platforms by congressional investigators examining alleged Russian interference in the U.S.
democratic process. Russia
has denied any interference
in the election.
“We take this very seriously
and that’s why we’re taking
strong action to improve security on Facebook by investing
in new technology and hiring
more people,” a Facebook
spokesman said when asked
about the events.
Disclosures by Facebook
about covert Russian influence on its platform around
the election have centered on
3,000 ads bought by accounts
connected to pro-Kremlin
firm
Internet
Research
Agency. The Russian actors
also, however, churned out
free posts, including event
listings. On Tuesday, the
company’s general counsel is
expected to tell congressional
investigators that the ads
were seen by 11.4 million
people, while content, such
as free posts and event listings from those pages, was
viewed by 126 million people.
Russian entities likely promoted events because the
Kremlin believes protests destabilize democracies, according to Ms. Oates, who studies
Russian propaganda. Event
listings show how Russiabacked pages organized protests for and against the
same issues. The page “Born
Patriotic” planned 17 proTrump rallies on the same
day in August 2016, while
“Black Matters” hosted anti-
Trump rallies after the election.
The Russia-backed pages
often contacted U.S. activists
over Messenger, a free messaging service from Facebook,
or by phone to ask for help organizing events, according to
activists. In other cases, activists reached out after seeing a
Facebook event, such as the
planned protest in Minneapolis following Mr. Castile’s
death by an account named
“Don’t Shoot.”
Some of the organizers say
they spoke to people with
British, South African and
other non-U.S. accents who
said they represented the ac-
counts.
The pages covered some
event costs, like travel and
equipment rental, and sent
funds to activists through
bank cards or money-transfer services like MoneyGram,
activists said. But the people
behind the accounts were
also hasty planners and often
failed at basic logistics, such
as securing permits—and appeared eager for their events
to provoke reactions or make
headlines, said activists who
worked with them.
Representatives from the
Facebook page “United Muslims of America” asked Mike
Ghouse, an interfaith activist, to speak at a Sept. 3,
2016, event in Washington,
D.C., billed as “a peaceful
rally, to make mosques and
their neighborhood safe!”
The group sent Mr.
Ghouse placards they intended to use that included
anti-Trump messages, causing him to back out, he said.
“I said they should be more
pluralistic, more inclusive
because there’s no need to
attack Trump,” Mr. Ghouse
said. “They wouldn’t, so I
didn’t go.”
Some events stoked public
discord. At the rally in front
of the Islamic center in
Houston, about a dozen protesters gathered, some waving confederate flags or
holding a sign that said
“#WhiteLivesMatter,”
according to video footage.
Across the street, about 60
counter protesters assembled
in an effort that didn’t appear
to have any Russian ties. Some
of them held a banner with
Adolf Hitler’s photo and the
words, “Follow your leader:
kill yourself.”
Photos and videos from
Houston and some of the other
events later appeared on Facebook, Google’s YouTube, as well
as Twitter and its live-streaming
video service Periscope.
—Jack Nicas
contributed to this article.
BY ALYSSA ABKOWITZ
BEIJING—Facebook may
not be back in China, but Mark
Zuckerberg is.
The social-media titan’s
chairman and chief executive
arrived in Beijing on Saturday
for the annual meeting of Tsinghua University School of Economics and Management’s advisory board. He skipped last
year’s gathering, though he did
visit China in March 2016.
A Facebook Inc. spokeswoman declined to discuss Mr.
Zuckerberg’s visit, which
comes after a recent series of
actions possibly indicating renewed efforts to re-enter the
Chinese market, where the
company’s main platform has
been blocked since 2009.
In September, Facebook hired
William Shuai to lead its government-relations efforts in Beijing. Mr. Shuai was hired away
from social-networking company LinkedIn Inc., which
gained access to China by agreeing to censor its content for local users and by forming a joint
venture with Chinese partners.
This year, Facebook invested $5
million in registered capital into
its Oculus virtual-reality unit in
Shanghai, nearly doubling the
amount to $11.3 million.
Mr. Zuckerberg got a little
face time with President Xi
Jinping, who addressed the
Tsinghua advisory board Monday. It wasn’t known whether
Mr. Zuckerberg had any Facebook-related meetings with
Chinese officials on his trip,
which occurred less than a
week after the closing of the
country’s twice-a-decade political meeting that cements leadership for the next five years.
Before the advisory board
meeting Monday, Mr. Zuckerberg participated in events
with Tsinghua students. On
Saturday, he heard students
describe startup ventures, including a music-composition
program that creates tunes using artificial intelligence and a
diagnosis system for heart disease based on AI.
“Mark said that our project
was impressive,” said Mo Weishu, one of the students from
the music-composition team
who delivered the presentation to Mr. Zuckerberg. “He
suggested that besides producing music, we should explore product diversification,
such as automatically generating soundtracks for videos.”
Earlier this year, Facebook
and Tsinghua teamed up to offer a course on insights from
Silicon Valley, which entailed
Tsinghua flying in seven Facebook executives over the semester to teach some classes.
Two of the projects Mr. Zucker-
MARK ZUCKERBERG/FACEBOOK
Facebook’s CEO Makes a
Return Visit to China
Students discussed a range of startup ventures with Mark Zuckerberg while he was in Beijing.
berg saw Saturday came out of
that course.
Later that evening, Mr.
Zuckerberg posted a picture
of himself with Tsinghua students—drawing several comments that pointed to the ob-
stacles
Facebook
must
overcome for any return of
its platform to China.
“If you think you can ever
convince them about opening
up to a free speech platform
like Facebook, forget it,” one
commenter wrote. “They just
had a 19th Congress that reaffirmed their commitment for
censorship and weeding out
dissent.”
—Xiao Xiao and Eva Dou
contributed to this article.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
* * * * *
Tuesday, October 31, 2017 | B5
TECHNOLOGY
Toyota Wants
A Talking Car
To Be Your Pal
TOKYO—If you love your
car, Toyota Motor Corp.
thinks your car should love
you back.
That is the reasoning behind the company’s artificialintelligence project, dubbed
Yui: an onboard virtual assistant that gauges your mood,
indulges in personal chitchat
and offers to drive if it senses
you are sleepy or distracted.
In one Toyota video, shown
at the Tokyo Motor Show, a
woman sits on a seaside cliff,
talking about her father with
her car. “He sounds like a
great father,” says Yui, in a
baritone male voice.
“You’re a bit like him,” the
woman says.
Until now, Toyota has kept
relatively quiet about autonomous vehicles and how it
plans to deal with challenges
from Silicon Valley upstarts,
such as Google parent Alphabet Inc.’s Waymo LLC. “We
think this is a good way to do
it,” said Didier Leroy, who
oversees Toyota’s business
planning and operations.
Toyota isn’t the only manufacturer that thinks your car
should talk to you. Japanese
rival Honda Motor Co. as well
as tech companies Amazon.com Inc. and Apple Inc.
are working on their own invehicle AI assistants.
To be sure, rarely do futuristic vehicles at auto shows
make it to the roads. But Toyota plans to start testing a car
equipped with Yui on Japanese
roads in 2020.
In
autonomous-driving
mode, the seats recline and
massage your back in a manner Toyota says will slow your
breathing and calm you down.
“I thought it was neat. I’ve
never spoken to a car,” said
Minami Yuuki, a 20-year-old
ANDREJ SOKOLOW/DPA/ZUMA PRESS
BY SEAN MCLAIN
APPLE
A self-driving Toyota Concept-i prototype with artificial intelligence, on display in Las Vegas in 2016.
college student, after a driverseat demonstration of Yui.
“The back massage was nice.”
Yui was unveiled at the
Consumer Electronics Show in
Las Vegas in January. At the
Tokyo event, Yui was demonstrated in concept vehicles.
One potential issue is the
amount of personal information such systems require and
how secure they are.
Toyota imagines Yui being
treated like a friend or family
member, with whom access to
social-media accounts is
shared. With a mountain of
data about your habits, likes
and dislikes, the car can make
educated guesses about what
you are doing, says Toyota.
Not all car makers see people wanting a humanlike relationship with their cars.
“I’m not sure we’re going in
that direction,” said Takao
Asami, who oversees research
at Nissan Motor Co. and its al-
liance partner, Renault SA.
Nissan is developing a system
that uses a form of AI to help
analyze sensor data, identifying cars and other obstacles.
Indeed, some people at the
motor show seemed less than
enthusiastic about a car that
always listens and records
people’s speech.
“I’d rather not have this,
because I’m a private person,”
said Yasuko Takahashi, a 54year-old office worker.
Samsung Sets Second Profit Record This Year
BY EUN-YOUNG JEONG
AND TIMOTHY W. MARTIN
SEOUL—Samsung
Electronics Co. delivered a record
quarterly profit for the second
time this year, as it continues
to cash in on strong demand
for its electronics components.
The Suwon, South Koreabased giant said net profit
rose to 11.19 trillion South Korean won ($9.95 billion) from
4.54 trillion won a year earlier.
Revenue rose 30% to 62.05
trillion won from 47.82 trillion
won a year earlier.
The year-earlier results
were hurt by the global recall
of the company’s fire-prone
Galaxy Note 7 smartphone,
causing Samsung to slash
third-quarter earnings guidance by a third. It ultimately
cost the company about $6.5
billion.
Despite that, Samsung executives have said early sales for
its two premium smartphones
released this year, the Galaxy
S8 and the Galaxy Note 8, have
outpaced those of their predecessors. Even so, operating
profit for the company’s mobile division fell 19% compared
with the previous three
months.
The company’s previous record net profit of 11.05 trillion
won came in the previous
quarter. Samsung has raked in
profits this year due to a proliferation of internet-connected devices and servers
that keep demand for the
firm’s semiconductors high.
Also, smartphone rivals—
most prominently Apple Inc.—
are adopting flexible organic
light-emitting diode, or OLED,
displays. Samsung has a
roughly 95% market share for
smartphone OLEDs, which enable phone makers to create
thinner devices.
But the company’s market
dominance hasn’t translated to
greater quarterly gains for its
display unit. Operating profit
there fell 5% from the same
period last year.
Operating profit also rose
179% from a year earlier to
14.53 trillion won, an all-time
high and nearly three times
the 5.2 trillion won that Samsung reported for the same
period last year.
Samsung shares have risen
about 50% this year, despite the
aftershocks of the Galaxy Note
7 recall and the absence of
Samsung’s de facto leader, Lee
Jae-yong, who was convicted in
August of bribing South Korea’s
former president. Mr. Lee’s appeal is under way.
Shares were 0.4% lower in
Tuesday morning trading in
Seoul, as the broader market
was roughly flat.
Samsung’s recent run of record earnings are derived from
robust sales of memory chips,
an industry that requires
heavy capital investment and
where success can be fleeting.
That is a shift from as recently
as early last year when smartphones represented the lion’s
share of profits.
Semiconductors accounted
for almost 69% of the company’s overall operating profit
in the third quarter, the biggest contribution to Samsung’s
bottom line since the second
quarter of 2010. Profit margins for the business unit was
50%, its widest margin ever.
Continued from page B1
been fully tested and released to
Apple.” The chip company said
it is “committed to supporting
Apple’s new devices” as it does
for others in the industry.
Apple in the past used only
Qualcomm modem chips for
iPhones, but started also procuring the chips from Intel for its
iPhone 7 and 7 Plus models last
year. It again used a mix of the
two in the iPhone 8 and 8 Plus
that started selling in September.
Apple’s plans to exclude
Qualcomm chips from next
year’s model could still change.
People familiar with Apple’s
manufacturing process said the
company could change modemchip suppliers as late as June,
three months before the next
iPhone is expected to ship. Still,
some of the people said Apple
hasn’t previously designed
iPhones and iPads to exclude
Qualcomm chips at a similar
stage of the process.
The Apple plans indicate the
battle with Qualcomm could spill
beyond the courtroom feud over
patents into another important
Qualcomm business where it has
the potential to send ripples
through the smartphone supply
chain. Qualcomm last year sold
around $3.2 billion of modem
chips a year to Apple, or 20% of
its total chip sales, according to
an estimate by Macquarie Capital. This year, Qualcomm’s chip
sales to Apple are likely to come
to $2.1 billion, or 13% of total
chip revenue, reflecting more
fully the iPhone 7’s mix of Qualcomm and Intel modems.
Selling chips is generally less
profitable for Qualcomm than
its patent business. Apple paid
$2.8 billion last year in Qualcomm royalties, which accounted for nearly 30% of the
chip maker’s per-share earnings, according to Macquarie
Capital. In the last year, Apple
has stopped reimbursing those
fees to iPhone and iPad manufacturers, which in turn have
stopped paying Qualcomm.
—Ted Greenwald
and Joe Flint
contributed to this article.
BUSINESS WATCH
MERGER
RODRIGO REYES MARIN/AFLO/ZUMA PRESS
Vistra and Dynegy
Plan Combination
Kobe Steel executive Naoto Umehara Monday in Tokyo, where
the company said it would forgo dividends amid a scandal.
Vistra Energy Corp. and Dynegy Inc., two large independent
power producers, will merge in
an all-stock deal, the companies
said Monday.
The Wall Street Journal reported last week that the two
companies were in advanced
talks to combine.
Under the terms of the
agreement, Dynegy shareholders
will receive 0.652 shares of Vistra stock for each Dynegy share,
the companies said. That represents an 18% premium on Dynegy’s Friday closing price of
$11.22.
ANNOUNCEMENT OF COMMENCEMENT OF TENDER OFFER FOR COMMON SHARES
OF CPFL ENERGIA S.A.
State Grid Brazil Power Participações S.A. (“State Grid”) hereby notifies the holders of common
shares (“Shares”) of CPFL Energia S.A. (“CPFL”) and holders of American Depositary Shares
representing Shares, that (i) on the terms and subject to the conditions set forth in the Notice of
Public Tender Offer for the Acquisition of Common Shares issued by CPFL, dated October 31,
2017 (the “Notice”) and (ii) in accordance with, among other things, Article 254-A of the Brazilian
Corporate Law, Item 8.1 of the Novo Mercado Listing Rules and Rule 14d-1(c) promulgated
under the Exchange Act of 1934, State Grid is today commencing a tender offer (“Offer”) to
acquire up to all of the issued and outstanding Shares of CPFL that are not already directly
or indirectly owned by State Grid for a cash amount of twenty five Brazilian reais and fifty-one
Brazilian centavos (R$ 25.51) per Share, subject to adjustment as set forth in the Notice.
The Offer will be consummated by means of an auction (“Auction”) on the electronic trading
system of the Bovespa segment of B3 S.A. – Brasil, Bolsa, Balcão (“B3”) in Brazil. The Auction
is expected to occur on November 30, 2017, unless the applicable Brazilian regulator, the
Comissão de Valores Mobiliários, determines or authorizes a different date for the Auction.
Holders of Shares subject to the Offer that wish to participate in the Auction must qualify to do
so with a brokerage firm authorized to operate on the B3, in accordance with the Notice, prior
to 6:00 p.m. (Brasília time) on November 29, 2017 (the last business day before the expected
Auction date). Holders of American Depositary Shares representing Shares will need to follow
additional procedures, as further described in the Notice.
The acceptance period for the Offer begins today and
ends at 6:00 p.m. (Brasília time) on November 29, 2017.
This communication is neither an offer to purchase, nor a solicitation of an offer to sell, Shares.
The Offer is being made solely pursuant to the Notice. HOLDERS OF COMMON SHARES OF
CPFL AND HOLDERS OF AMERICAN DEPOSITARY SHARES REPRESENTING COMMON
SHARES OF CPFL ARE URGED TO READ THE NOTICE, AND ANY OTHER RELEVANT
DOCUMENTS DISSEMINATED BY STATE GRID IN CONNECTION WITH THE OFFER,
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE OFFER.
The Notice was published today in Portuguese in the Valor Econômico newspaper in Brazil and is
also available on the Internet in Portuguese at http://cpfl.riweb.com.br/. An unofficial translation
into English of the Notice is available for informational purposes only (the original Portuguese
will prevail in the event of any difference between the original Portuguese and the English
translation) on the Internet at http://cpfl.riweb.com.br/ and will also be made available under
cover of Form CB on the website of the United States Securities and Exchange Commission at
www.sec.gov within one business day after the date of this communication Holders of Shares
may also request copies of the Notice and/or the unofficial translation thereof into English, free
of charge, by making a written request therefore to CPFL by mail at Rua Gomes de Carvalho,
nº 1.510, 14° andar, conj. 02 CEP 04547-005 – São Paulo, SP or by email at ri@cpfl.com.br, or
by making an oral request therefore by telephone to +55(19) 3756.8895 or +55(19) 3756.6082
(individuals) and +55(19) 3756.6083 or +55(19) 3756.8887 (analysts or institutional investors).
After the deal closes, Vistra
Energy shareholders will own
about 79% of the new company
and Dynegy shareholders will
own about 21%.
—Cara Lombardo
KOBE STEEL
Company Girds
For Scandal Fallout
Kobe Steel Ltd. on Monday
withdrew its full-year profit
guidance and said it wouldn’t
pay an interim dividend, as it
prepares for a potential blow to
earnings from a product-quality
scandal.
The company reported net
profit of ¥39.3 billion ($346 million) for the first six months of
the financial year ended in March,
beating its forecast of ¥25 billion,
as its steel business recovered.
The company admitted earlier
this month to doctoring quality
documents on tens of thousands
of tons of aluminum and copper
shipments to make it appear the
materials met customer specifications when they didn’t.
Kobe Steel projects a ¥10 billion hit this year from the scandal, but said it couldn’t accurately predict its full liability. The
company canceled plans to pay
a dividend of ¥10 per share, as
it looks to conserve cash.
The company said no safety
problems have been found yet
after checks at 437 of the 525
affected customers.
—Sean McLain
NOVARTIS
Drugmaker Boosts
Oncology Portfolio
Novartis AG agreed to acquire Advanced Accelerator Applications SA for $3.9 billion, a
deal that would boost its oncology portfolio as generic competition eats into sales of blood-cancer drug Gleevec.
The Swiss drug giant said
Monday it is offering $41 a
share for the France-based, New
York-listed company.
A deal would hand Novartis
AAA’s Lutathera treatment,
which belongs to a small but
growing class of therapies
known as radio-pharmaceuticals.
—Denise Roland
THE WALL STREET JOURNAL.
B6 | Tuesday, October 31, 2017
BUSINESS NEWS
Activists Seek
Sway at Clariant
CHRIS RATCLIFFE/BLOOMBERG NEWS
BY BRIAN BLACKSTONE
Cans of Dulux paint at an Akzo Nobel factory in the U.K. Akzo and U.S.-based Axalta Coating Systems are considering a merger.
Akzo in Paint-Deal Talks
Akzo Nobel NV and U.S. rival Axalta Coating Systems
Ltd. said they are in talks to
join forces in a merger of
equals that would create a
multibillion-dollar coating and
paints giant.
The deal would involve the
Dutch paint company first proceeding with a plan to spin off
its specialty-chemicals business and distribute the bulk of
the proceeds to shareholders.
Akzo said that plan, which is
unaffected by the Axalta talks,
remains on track for April.
Monday’s announcement
confirms a Wall Street Journal
article on the possible deal
structure.
The combined company
would have added scale to
generate better pricing for raw
materials, eliminate overlapping operations and gain new
customers to help revive profit
growth. Coatings are used to
prevent corrosion and improve
durability across sectors including the automotive, electronics and marine industries.
Axalta cautioned that the
talks might not lead to completion of a deal.
A merger of equals typically
involves companies with a
similar market value. The
deals are structured through a
share swap and shareholders
of the companies don’t receive
Notice of Redemption of
Banco Central de la República Dominicana
Collateralized Discount Bonds Due 2024
ISIN: XS0052684601
In accordance with the provisions of the Fiscal Agency Agreement dated
August 30, 1994, the Issuer has elected to redeem and pay in full the
remaining outstanding principal in the amount of US$4,461,000.00 together
with all interest due in the amount of US$51,301.50 for a total final amount
of US$4,512,301.50 on November 30, 2017.
Citibank Agency & Trust 31st of October, 2017
ADVERTISEMENT
The Mart
To advertise: 800-366-3975 or WSJ.com/classifieds
ANNOUNCEMENTS
BUSINESS OPPORTUNITIES
Attention High-Tax Payers:
Cut Your Taxes Now
! "#
$ by 30-50% -- this year. Earn more than $500,000?
Legal, simple tools cut your taxes now. Strategies
previously reserved for the mega-wealthy now at your
fingertips. No obligation. No gimmicks. Don’t wait till it’s
too late. To get your FREE guide simply
text "TaxCut" to (323) 870-1040
BUSINESS OPPORTUNITIES
TRAVEL
Green Power Co
Save Up To 60%
Merger or Aquisition
2 yr Payback, 2016 profit
Sales and Contracts
Waste to Energy
$3M Loss Carry
Richard@Langsonenergy.com
First & Business
INTERNATIONAL
Major Airlines, Corporate Travel
Never Fly Coach Again!
www.cooktravel.net
(800) 435-8776
$1,000,000 Yearly-$5,000 Daily
FDA approved medical device
Very large passive income
Financing and placement in
a doctor’s office available
Call Today! (877) 670-1134
any significant premium for
their stock. This type of structure would be crucial for
Akzo’s attempt to win support
from its shareholders, some of
whom have been concerned
the Amsterdam-based company could seek a large acquisition, potentially paying a sizable premium, to protect itself
against an unwanted suitor.
Earlier this year, Elliott
Management Corp., one of
Akzo’s biggest shareholders,
mounted a campaign to force
Akzo into sale talks with its
U.S. paints rival PPG Industries Inc. The $28 billion takeover attempt failed.
An Elliott spokeswoman declined to comment Monday.
Currently, Akzo has a market value of $22.6 billion, compared with Axalta’s value of
$8.1 billion. That gulf in valuation precludes a merger of
equals and would instead require Akzo paying a takeover
premium to acquire Axalta. By
selling or spinning off the specialty-chemicals business first
as a condition to a deal with
Axalta, Akzo’s market value
would likely fall more closely
in line with its Philadelphiabased rival. Some analysts estimate the specialty-chemicals
business could be valued at as
much as $10 billion, which
would no longer be reflected
in Akzo’s market capitalization
after the spinoff.
The deal’s failure
reflects the growing
influence of activist
investors in Europe.
“Should we be unable to
come to agreement with the
current Board of Directors
shortly, we will have no choice
but to move to call an Extraordinary General Meeting so
that all shareholders can have
a voice in Clariant’s future,” it
said Monday.
In a statement, Clariant
said that “several talks took
place” since the merger was
shelved Friday and that it will
“of course consider White
Tale’s requests.”
Staples Is
Set to Sell
China Unit
BY JULIE STEINBERG
Staples Inc. is moving forward with plans to sell its operations in China, as it looks
to focus on its business closer
to home, according to people
familiar with the matter.
The U.S. office-supply retailer is talking to potential
buyers in Asia, with a round of
bids due in a couple of weeks,
a person familiar with the
matter said. The deal is likely
to be small, the people said.
The company is divesting
its China business as part of a
plan announced last year to
downsize stores and focus on
its North American business.
Staples in March sold its Australia and New Zealand operations to U.S. buyout firm Platinum Equity LLC. It sold a
majority stake in its European
business to private-equity firm
Cerberus Capital Management LP in December.
Staples, which used to be a
public company, was recently
bought out by Sycamore Partners, a U.S. private-equity
firm, for about $6.9 billion.
The company decided to sell
itself after failing to merge
with its key rival Office Depot
Inc. last year.
Spokesmen for Staples and
Sycamore declined to comment.
Staples first entered China
in 2004 with a Shanghai-based
joint venture with a mail-order and internet company,
eyeing growth opportunities
in what it at the time estimated was a $25 billion office
products market.
The China market has
proved difficult at times. Staples in recent years booked
impairment charges on the
business, though in 2016
notched double-digit growth
in China sales.
—Yifan Xie contributed to
this article.
DAVID GIESBRECHT/ASSOCIATED PRESS
BY BEN DUMMETT
ZURICH—The activist investors who helped scuttle a proposed merger between Clariant
AG and U.S.-based Huntsman
Corp. said they would seek
three seats on the Swiss chemical company’s board and press
for more changes, including the
sale of its plastics and coatings
business.
“The work is just beginning,” said a statement Monday by White Tale Holdings.
“We have been both consistent
and clear on what we believe
is next for Clariant, and we
will now both seek Board representation and continue to
proactively engage with other
shareholders to ensure the
long-term success of Clariant.”
White Tale comprises investment funds 40 North Latitude Master Fund Ltd.—
which is controlled by U.S.
investors David Winter and
David Millstone—as well as
Corvex Master Fund Ltd.,
which is controlled by wellknown activist investor Keith
Meister. It owns more than
20% of Clariant’s stock.
On Friday, Clariant and
Huntsman terminated their
proposed merger, saying that
stake-building by the activists—and the fact other shareholders had started to support
their cause—meant there was
“too much uncertainty” that
they would secure the twothirds of shareholder approval
needed for the deal to proceed
under Swiss law.
The failure of the deal and
fresh demands are the latest example of the growing influence
of activist investors in Europe.
In its statement, White Tale
urged Clariant to hire an independent adviser “to undertake a
thorough review of all strategic
alternatives without prejudging
the outcome and without selfinterested preconditions.” The
investors added that they will
be “unbiased” in their review of
Clariant once they have more
information. In a letter to Clariant’s board last month, White
Tale said Clariant could sell its
plastics and coatings business
“at an attractive valuation with
minimal tax leakage.”
Braskem is co-owned by oil firm Petróleo Brasileiro, or Petrobras, and construction firm Odebrecht.
Chemicals Tie-Up Weighed
BY DANA MATTIOLI
AND DANA CIMILLUCA
LyondellBasell Industries
NV has made a takeover approach to Braskem SA, according to people familiar
with the matter, offering a
deal that could value the Brazilian petrochemical company
at well over $10 billion.
The talks are at an early
stage, the people said, and
there is no guarantee there
will be a deal.
Should there be one, it would
be substantial: Braskem on Monday had a market value of about
37 billion Brazilian reais ($11.4
billion) and nearly as much debt.
LyondellBasell had a market
value of about $40 billion.
It would also be the secondlargest Brazilian M&A deal, according to Dealogic. There has
only been one double-digit billion-dollar deal in the country,
according to the data provider’s
records: a $43 billion acquisition
of oil-and-gas assets by Petróleo Brasileiro SA, known as
Petrobras, announced in 2010.
LyondellBasell and Braskem
operate in similar product lines
but different geographies. Products include polyethylene, which
is used in everyday items such
as garbage bags and milk jugs. A
deal would also give LyondellBasell access to faster-growing
Latin American markets.
LyondellBasell is a Netherlands-based chemicals-and-polymer producer with a big presence in Houston. It was formed
in 2007 when Dutch chemical
company Basell International
Holdings BV paid $12.7 billion to
buy Houston-based Lyondell
Chemical Co. The deal loaded
the company with more than
$20 billion in debt just before
global commodity markets tumbled in the global financial crisis. A little more than a year after the merger, LyondellBasell
filed for bankruptcy.
It emerged from bankruptcy
in 2010 after eliminating about
$5 billion in debt. Ukrainianborn billionaire Len Blavatnik’s
holding company, Access Industries, is a significant backer. Recently, executives of the chemical company have indicated they
have a big M&A appetite.
Braskem is co-owned by state
oil firm Petrobras and construction firm Odebrecht SA, which
owns just over half of the voting
shares. The company, which
says it is the biggest producer of
polypropylene in the U.S., had
sales of 55.5 billion reais last
year.
Odebrecht said it “continues
to work on alternatives that
may add value to Braskem and
its shareholders and reaffirms
its intention to keep Braskem as
one of the group’s investments.”
The chemicals sector has
been a hotbed of merger activity. On Monday, Akzo Nobel
NV and U.S. rival Axalta Coating Systems Ltd. said they are
in talks to join forces in a
merger of equals that would
create a multibillion-dollar
coating and paints giant.
Earlier this year, Dow
Chemical Co. and DuPont Co.
completed their roughly $60
billion merger, which they expect to follow with a threeway breakup. Last year, industrial-gas giants Praxair Inc.
and Germany’s Linde AG
agreed to combine.
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Largest 100 exchange-traded funds, latest session
ETF
Monday, October 30, 2017
Closing Chg YTD
Symbol Price (%) (%)
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
DBGoldDoubleLgETN
DBGoldDoubleShrt
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFEETF
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500ETF
iShCoreS&PMdCp
iShCoreS&PSmCpETF
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
AMLP
XLY
XLP
DGP
DZZ
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
10.74
91.98
52.65
24.30
5.59
67.69
26.67
96.40
81.26
71.82
110.01
105.26
123.23
64.99
55.31
61.89
258.52
182.04
74.12
58.81
109.54
94.61
0.85 –14.8
–0.45 13.0
1.8
–0.85
1.12 20.8
–0.68 –18.4
0.52 –10.1
–0.41 14.7
–0.49 11.3
–1.07 17.9
–0.69 15.4
1.7
0.14
0.3
0.01
0.6
0.17
0.28 21.2
–0.61 30.3
0.13 22.6
–0.34 14.9
–0.71 10.1
7.8
–1.41
–0.37 14.7
1.4
0.27
6.8
–0.46
ETF
ETF
Closing Chg YTD
Symbol Price (%) (%)
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCIACWIETF
iShMSCIBrazilCap
iShMSCI EAFE
iShMSCIEAFESC
iShMSCIEmgMarkets
iShMSCIEurozoneETF
iShMSCIJapanETF
iShNasdaqBiotech
iShNatlMuniBdETF
iShRussell1000Gwth
iShRussell1000ETF
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000ETF
iShRussell2000Val
iShRussell3000ETF
iShRussellMid-Cap
EFAV
USMV
IAU
LQD
HYG
EMB
MBB
ACWI
EWZ
EFA
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
71.58
51.27
12.26
121.31
88.45
116.14
106.94
70.08
40.16
69.34
62.67
45.85
43.60
58.40
316.66
110.79
129.62
142.95
119.34
179.75
148.21
123.54
152.18
199.64
0.04
–0.56
0.25
0.33
–0.02
0.29
0.22
–0.16
–3.35
0.23
0.45
–0.63
0.60
–0.03
0.17
0.12
–0.19
–0.33
–0.55
–1.00
–1.05
–1.24
–0.43
–0.53
16.9
13.4
10.6
3.5
2.2
5.4
0.6
18.4
20.5
20.1
25.7
31.0
26.0
19.5
19.3
2.4
23.6
14.9
6.5
16.8
9.9
3.9
14.4
11.6
Closing Chg YTD
Symbol Price (%) (%)
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
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
IWS
IJK
IVW
IVE
PFF
TIP
SHY
IEF
TLT
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
SCHX
DIA
MDY
SPY
SDY
XLK
XLU
GDX
VGT
85.45
207.88
147.98
109.04
38.41
113.75
84.35
106.23
124.42
115.75
101.87
151.58
46.53
23.14
37.22
121.13
33.93
62.12
61.37
233.33
331.85
256.75
92.48
62.68
55.06
22.76
162.52
–0.43
–0.77
–0.20
–0.51
–0.26
0.26
0.05
0.36
0.96
–0.55
0.03
0.22
–0.45
...
–0.03
0.19
0.24
–0.38
–0.32
–0.36
–0.72
–0.37
–0.67
0.22
0.02
0.84
0.33
6.2
14.1
21.5
7.6
3.2
0.5
–0.1
1.3
4.4
18.9
0.5
27.9
11.9
–0.9
2.1
10.5
22.6
14.7
15.2
18.1
10.0
14.9
8.1
29.6
13.4
8.8
33.8
ETF
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 (%) (%)
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
128.24
96.82
43.98
44.38
58.31
53.51
136.17
151.07
82.46
84.58
88.03
117.95
148.49
106.15
82.21
235.86
79.72
80.03
142.55
81.82
54.89
55.58
132.06
71.98
101.70
65.93
57.64
–0.94
–0.76
0.23
–0.80
0.60
0.06
–0.03
–1.04
–0.65
0.27
0.22
–0.36
–0.55
–0.52
–0.09
–0.36
0.09
0.05
–0.72
0.23
0.22
0.05
–0.44
–0.12
–0.62
0.21
–0.53
6.0
13.7
20.4
24.0
21.6
21.1
22.1
19.2
8.8
1.8
2.7
15.2
12.8
9.2
–0.4
14.9
0.3
0.8
10.5
1.3
1.1
21.1
14.5
18.0
9.3
14.9
16.4
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 31, 2017 | B7
MARKETS DIGEST
EQUITIES
Dow Jones Industrial Average
S&P 500 Index
Last Year ago
23348.74 t 85.45, or 0.36%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.15 19.83
P/E estimate *
19.54 17.19
Dividend yield
2.20
2.59
All-time high 23441.76, 10/24/17
Nasdaq Composite Index
Last
2572.83 t 8.24, or 0.32%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 24.16 24.31
P/E estimate *
19.49 18.02
Dividend yield
1.92
2.16
All-time high: 2581.07, 10/27/17
Last Year ago
6698.96 t 2.30, or 0.03%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.00
24.09
P/E estimate *
21.55
19.35
Dividend yield
1.07
1.21
All-time high: 6701.26, 10/27/17
Current divisor 0.14523396877348
23500
2570
6700
UP
Close
23000
2540
6600
Open
22500
2510
6500
22000
2480
6400
Session high
t
DOWN
Session open
t
Close
Session low
21500
6300
2450
65-day moving average
65-day moving average
65-day moving average
21000
6200
2420
Bars measure the point change from session's open
20500
July
Aug.
Sept.
Oct.
6100
2390
July
Aug.
Sept.
July
Oct.
Aug.
Sept.
Oct.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Latest
Close
Low
Net chg
% chg
High
52-Week
Low
% chg
% chg
3-yr. ann.
YTD
Dow Jones
Industrial Average
9902.69
9799.61
753.24
749.45
Utility Average
Total Stock Market
Barron's 400
-0.36
23428.75 23327.87 23348.74 -85.45
Transportation Avg
9802.70 -128.95
6677.15
6202.53
6698.96
6227.59
0.11
0.83
752.45
26725.77 26595.14 26636.29 -107.67
690.49
683.37
685.24 -6.32
Nasdaq Stock Market
Nasdaq Composite
6727.39
Nasdaq 100
6250.85
-1.30
-0.40
-0.91
-0.03
-2.30
14.12
0.23
23441.76 17888.28
28.7
18.1
10038.13
8008.38
21.7
8.4
4.3
754.80
625.44
11.4
14.1
8.1
26743.96 21514.15
691.56
521.59
21.3
28.1
14.4
13.9
8.7
9.0
6701.26
6227.59
5046.37
4660.46
29.1
29.7
10.7
24.4
28.0
13.6
14.9
Standard & Poor's
500 Index
2580.03
2568.25
2572.83
-8.24
-0.32
2581.07
2085.18
21.0
14.9
8.9
MidCap 400
SmallCap 600
1836.53
914.28
1821.55
899.11
1825.43 -13.69
903.48 -12.95
-0.74
-1.41
1839.12
918.72
1476.68
703.64
20.9
25.0
9.9
7.8
9.2
10.6
Other Indexes
Russell 2000
1507.48
1484.82
1490.90 -17.42
-1.15
1512.09
1156.89
25.1
9.9
8.9
12430.52 10289.35
NYSE Composite
12354.56 12308.84 12319.47 -46.97
543.46
538.52
539.55
-3.91
NYSE Arca Biotech
4166.46
4091.98
4116.34
0.18
NYSE Arca Pharma
536.52
532.68
533.49
-4.00
KBW Bank
102.30
101.46
-0.47
PHLX§ Gold/Silver
101.76
82.80
81.22
0.80
PHLX§ Oil Service
82.37
131.52
128.34
131.32
3.01
1270.84
10.89
1258.91
10.10
1265.91
10.50
2.36
0.70
Value Line
PHLX§ Semiconductor
CBOE Volatility
-0.38
Volume, Advancers, Decliners
Most-active issues in late trading
Company
Encana
Symbol
Volume
(000)
ECA
22,715.0
SPY
SPDR S&P 500
VanEck Vectors Gold Miner GDX
Close
…
11.28
8,792.1 256.68
-0.07
-0.03 257.70 256.60
5,850.2
22.75
-0.01
unch.
11.28
-0.04
22.81
Ambev ADR
ABEV
4,550.6
6.36
0.01
0.14
6.38
6.35
Intel
INTC
3,742.1
44.30
-0.07
-0.16
44.50
44.15
General Electric
GE
2,944.1
20.45
0.04
0.20
20.60
20.36
Microsoft
MSFT
2,842.7
83.88
-0.01
-0.01
84.07
83.72
2,261.5 148.19
-0.02
-0.01 148.39 147.98
iShares Russell 2000 ETF IWM
22.74
Percentage gainers…
Unisys Corp
UIS
37.0
9.30
0.90
10.71
10.00
8.35
Apptio Cl A
APTI
9.1
20.75
1.66
8.70
21.50
19.09
Vistra Energy
VST
44.2
19.79
1.22
6.55
19.79
18.57
Sterling Construction
STRL
8.5
16.43
0.98
6.34
16.50
15.40
Allison Transmission
ALSN
169.7
44.45
2.15
5.08
46.00
42.30
Voyager Therapeutics VYGR
101.1
20.00
-2.73
-12.01
22.73
16.90
14.2
14.70
-1.60
-9.82
16.35
14.60
11.4
4.8
6.6
3.5
4304.77
2834.14
39.9
33.9
7.1
-0.74
560.52
463.78
12.3
10.8
0.3
-0.46
102.23
73.36
36.6
10.9
12.6
96.72
73.03
-5.3
4.5
6.6
Nautilus
NLS
192.66
117.79
-12.9
-28.5 -18.8
Sanmina
SANM
9.0
35.95
-2.85
-7.35
38.80
35.70
802.88 53.7
9.19 -38.5
39.7 27.1
-25.2 -10.2
AGCO
AGCO
10.2
67.07
-4.33
-6.06
71.73
67.07
Newpark Resources
NR
11.7
8.66
-0.55
-5.92
9.25
8.55
0.004
0.99
2.34
0.19
1265.91
22.51
7.14
YTD
% chg
0.08
0.07
0.49
2.40
0.26
1.27
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
393.91
396.80
4078.68
5493.63
13229.57
1441.49
22752.89
549.46
1124.05
10446.00
593.85
9175.50
7487.81
0.48
1.01
–13.48
–0.50
12.03
–1.37
87.86
0.02
5.43
248.50
–1.44
–7.92
–17.22
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
5919.10
Shanghai Composite 3390.34
Hang Seng
28336.19
S&P BSE Sensex
33266.16
Nikkei Stock Avg
22011.67
Straits Times
3375.97
Kospi
2501.93
Weighted
10756.87
15.90
–26.48
–102.66
108.94
3.22
–10.47
5.30
47.76
...And losers
0.12
0.26
–0.33
–0.01
–0.09
0.09
0.39
0.004
0.49
2.44
–0.24
–0.09
–0.23
0.27
–0.77
–0.36
–0.31
0.33
0.01
0.21
0.45
17.0
17.6
20.8
14.5
24.2
4.7
7.0
32.0
9.0
13.3
13.1
13.0
15.2
–2.0
18.3
13.7
–2.5
11.7
11.1
11.6
4.8
4.5
9.2
28.8
24.9
15.2
17.2
23.5
16.2
Company
Symbol
SuperCom Ltd.
Capella Education
CalAtlantic Group
TransEnterix
Adamas Pharmaceuticals
SPCB
MYnd Analytics
Xunlei ADR
Cancer Genetics
AeroCentury
Mustang Bio
MYND
CARBO Ceramics
Global Blood Therapeutics
Immune Design
Celcuity
Mattel Inc
CRR
CPLA
CAA
TRXC
ADMS
XNET
CGIX
ACY
MBIO
GBT
IMDZ
CELC
MAT
52-Week
Low
% chg
High
38.8
16.9
51.8
91.3
71.8
Symbol
Advanced Micro Devices
General Electric
Sprint Corp.
Dynegy
AT&T
AMD
Bank of America
Finl Select Sector SPDR
SPDR S&P 500
Intel
Apple
BAC
GE
S
DYN
T
XLF
SPY
INTC
AAPL
A consumer rate against its
benchmark over the past year
New car loan
0.62
1.37
0.45
1.65
1.16
17.87
17.15
16.36
13.25
13.14
9.75
9.59
5.30
16.10
13.35
2.80
3.11
1.10
8.61
8.22
-53.5
94.6
141.5
56.7
...
Proteon Therapeutics
GRAVITY ADR
Social Reality Cl A
AudioCodes
Fibrocell Science
PRTO
7.87
38.65
4.60
18.26
15.58
0.88
4.30
0.50
1.92
1.58
12.59
12.52
12.20
11.75
11.29
16.70 5.66
41.15 13.35
13.05 3.78
19.33 11.10
32.48 12.71
29.0
121.5
-14.0
...
-50.6
Century Aluminum
DryShips
Pain Therapeutics
Cooper Tire
Aytu BioScience
CENX
Volume % chg from Latest Session
(000) 65-day avg Close % chg
136,692
95,432
59,301
51,290
50,536
141.6
86.5
347.7
1401.1
85.7
10.89
20.41
6.34
11.85
33.54
-8.02
-1.83
-9.30
5.61
-1.27
50,484
47,955
45,455
44,412
44,138
-22.4
-6.4
-29.1
88.5
59.2
27.60
26.67
256.75
44.37
166.72
-0.72
-0.41
-0.37
-0.07
2.25
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
4.00%
t
3.50
3.00
t
2.00
1.89%
800-288-3425
TrustCo Bank
Orlando, FL
2.37%
407-422-7129
Monday
Cambridge Savings Bank
2.59%
Cambridge, MA
888-418-5626
Gate City Bank
Fargo, ND
2.74%
701-293-2485
STAR Financial Bank
Fort Wayne, IN
2.74%
765-622-4173
1
3 6
month(s)
One year ago
1 2 3 5 710
years
maturity
Federal-funds rate target
1.00-1.25 1.00-1.25
Prime rate*
4.25
4.25
Libor, 3-month
1.37
1.38
Money market, annual yield
0.32
0.32
Five-year CD, annual yield
1.47
1.47
30-year mortgage, fixed†
3.93
3.99
15-year mortgage, fixed†
3.24
3.28
Jumbo mortgages, $424,100-plus† 4.34
4.31
Five-year adj mortgage (ARM)† 3.50
3.57
New-car loan, 48-month
3.01
3.02
HELOC, $30,000
5.20
5.19
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.88 l
0.26 l
1.19 l
l
3.61
l
2.85
l
4.23
l
3.13
l
2.85
l
4.57
1.25
4.25
1.38
0.36
1.47
4.33
3.50
4.88
4.03
3.36
5.30
1.00
1.00
1.14
-0.10
-0.04
-0.03
0.11
0.03
-0.03
-0.20
0.75
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
DRYS
PTIE
CTB
AYTU
CPLA
0
1.50
–5
0.75
–10
0.00
–15
30
1.81
6.80
2.97
2.20
1.72
-76.5
...
-3.5
30.9
-60.8
1.75
49.30
3.38
6.72
2.15
-0.25
-7.01
-0.48
-0.90
-0.27
-12.50
-12.45
-12.44
-11.81
-11.16
11.45
66.74
7.00
8.43
4.64
1.10
9.10
1.11
5.16
1.57
-82.3
362.9
-46.5
28.7
7.0
13.50
4.30
3.47
32.20
3.35
-1.68 -11.07
20.68 6.51
-0.50 -10.42 799680.00 0.98
-0.40 -10.34
9.31 3.10
-3.55 -9.93
44.50 31.55
-0.35 -9.46
6.82 0.17
84.7
-99.9
-11.8
-12.4
139.3
PXLV
ENZY
AAAP
CAA
DEUS
VST
DYN
XNET
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52-Week
High
Low
512
477
3,234
8,851
18,214
8770
5817
4074
3103
1945
9.70
37.86
11.85
80.50
49.07
-0.10
-0.69
5.33
10.41
21.31
9.80 9.65
38.23 31.15
12.35 5.20
80.70 23.50
50.48 30.20
856
504
26,401
51,290
8,133
1570
1547
1467
1401
1395
85.45
30.81
18.57
11.85
9.36
30.46
-0.48
-8.52
5.61
17.15
99.25 65.15
31.02 25.41
21.20 13.50
12.84 5.84
9.59 3.11
Currencies
U.S.-dollar foreign-exchange rates in late New York trading
s
Euro
s
Yen
Country/currency
US$vs,
YTDchg
Mon
in US$ per US$ (%)
Americas
Argentina peso
.0565 17.6950
Brazil real
.3040 3.2890
Canada dollar
.7791 1.2835
Chile peso
.001564 639.50
Colombia peso
.0003320 3012.33
Ecuador US dollar
1
1
Mexico peso
.0520 19.2390
Peru new sol
.3078 3.249
Uruguay peso
.03423 29.2100
Venezuela b. fuerte .096898 10.3202
11.5
1.0
–4.5
–4.5
0.3
unch
–7.2
–3.1
–0.5
3.3
Asia-Pacific
2016 2017
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
2.127
2.127
2.237
1.482 –1.262 1.901
2.374
3.026
2.610
5.193
2.910
1.968
2.375
3.034
2.600
5.046
2.870
1.907
2.609
3.390
2.790
6.448
3.120
2.516
1.783
2.730
2.100
4.948
2.270
1.677
1.965
3.122
1.001
8.180
0.563
1.858
805.428
5.450
5.459
6.290
5.279
5.939 5.572
1.729
3.963
2.368
4.168
2.095
2.578
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.7687 1.3009 –6.3
China yuan
.1504 6.6468 –4.3
Hong Kong dollar
.1282 7.7990 0.6
India rupee
.01542 64.857 –4.6
Indonesia rupiah .0000736 13584 0.4
Japan yen
.008836 113.17 –3.3
Kazakhstan tenge .002997 333.65 –0.01
Macau pataca
.1242 8.0517 1.7
Malaysia ringgit
.2360 4.2375 –5.5
New Zealand dollar
.6877 1.4541 0.7
Pakistan rupee
.00949 105.338 0.9
Philippines peso
.0194 51.659 4.1
Singapore dollar
.7348 1.3609 –6.0
South Korea won .0008891 1124.78 –6.9
Sri Lanka rupee
.0065108 153.59 3.5
Taiwan dollar
.03311 30.198 –7.0
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
US$vs,
YTDchg
Mon
in US$ per US$ (%)
Country/currency
.03009 33.230 –7.2
.00004403 22710 –0.3
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
.04540 22.028 –14.2
.1566 6.3877 –9.6
1.1651 .8583 –9.7
.003745 267.01 –9.3
.009547 104.75 –7.3
.1227 8.1509 –5.7
.2742 3.6475 –12.9
.01725 57.975 –5.4
.1197 8.3517 –8.3
1.0058 .9942 –2.4
.2646 3.7800 7.3
.0373 26.8350 –0.9
1.3207 .7572 –6.5
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6514 .3772
...
.0566 17.6545 –2.6
.2836 3.5266 –8.4
3.3042 .3026 –1.0
2.5974 .3850 0.01
.2644 3.782 3.9
.2666 3.7503 –0.01
.0711 14.0641 2.7
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 87.53 –0.25–0.29 –5.82
Sources: Tullett Prebon, WSJ Market Data Group
Commodities
COMMODITIES
Monday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
Get real-time U.S. stock quotes and track most-active
stocks, new highs/lows and mutual funds. Plus,
deeper money-flows data and email delivery of key
stock-market data. Available free at WSJMarkets.com
10.80
14.99
6.26
38.86
10.18
* 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
WSJ Dollar index
5
52-Week
Low
% chg
Ranked by change from 65-day average*
Capella Education
Xtrackers Russell 1000
Vistra Energy
Dynegy
Xunlei ADR
27.98 16.28
26.92 19.40
257.89 208.38
45.19 33.23
168.07 104.08
1457.845
EMBI Global, J.P. Morgan
FCSC
KBLM
10-yr Treasury, Ryan ALM 1729.959
DJ Corporate
380.302
Aggregate, Barclays Capital 1939.990
High Yield 100, Merrill Lynch 2865.586
Fixed-Rate MBS, Barclays 1986.280
Muni Master, Merrill
521.190
Treasury, Ryan ALM
AUDC
KBL Merger IV
PS Russell Top 200 Pure V
Enzymotec
Adv Accelerator Appl ADR
CalAtlantic Group
6.22
20.26
5.83
5.84
33.33
10%
2.25
Close
SRAX
15.65
32.38
9.65
12.84
43.03
Corporate Borrowing Rates and Yields
Bond total return index
GRVY
High
-62.32
-23.30
-18.28
-15.92
-12.56
ACHV
Symbol
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
* 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.
-3.06
-2.12
-0.68
-1.71
-0.26
HMNY
Company
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.00
t
2.50
Think Mutual Bank
Rochester, MN
NYSE Arca
1.85
6.98
3.04
9.03
1.81
ODP
52-Week
High
Low
Forex Race
3.75%
3.02%
Nasdaq
Total volume*1,987,837,644 213,306,924
Adv. volume* 893,288,847 99,252,668
Decl. volume*1,068,669,325 113,064,085
Issues traded
3,036
1,297
Advances
982
554
Declines
1,928
724
Unchanged
126
19
New highs
112
95
New lows
58
24
Closing tick
395
61
Closing Arms†
0.61
0.86
Block trades*
7,765
1,074
Latest Session
Close Net chg % chg
LYL
Volume Movers
notes and bonds
Bankrate.com avg†:
ICON
4.09
9.36
3.20
14.10
9.99
* Volumes of 100,000 shares or more are rounded to the nearest thousand
t
Selected rates
Iconix Brand Group
Dragon Victory Intl
Office Depot
Helios Matheson Analy
Achieve Life Sciences
4.29 2.01
99.25 65.15
50.48 30.20
5.00 0.45
24.55 12.10
s
U.S. consumer rates
Symbol
36.26
30.46
21.31
21.10
21.01
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
Company
3.72 0.99
85.45 19.95
49.07 8.62
2.87 0.50
23.61 4.10
Most Active Stocks
Company
Total volume* 869,793,729 12,237,220
Adv. volume* 311,381,703 8,343,505
Decl. volume* 536,865,439 3,613,998
Issues traded
3,064
331
Advances
1,163
142
Declines
1,800
171
Unchanged
101
18
New highs
115
3
New lows
45
2
Closing tick
67
1
Closing Arms†
1.04
0.33
Block trades*
6,610
86
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
WSJ
.COM
Low
11.28
Percentage Gainers...
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
Interest rate
After Hours
% chg
High
15.7
DJ Americas
618.65
–0.31
–1.90
Sao Paulo Bovespa 74800.33 –1175.38 –1.55
0.31
S&P/TSX Comp
16002.78
49.27
S&P/BMV IPC
48855.27 –354.31 –0.72
1.65
Santiago IPSA
4255.93
68.88
N D J FMAM J J A S O
2016 2017
Net chg
17.5
Latest
% chg
Net chg
2962.39
383.56
258.50
The Global Dow
DJ Global Index
DJ Global ex U.S.
New car loan
Last
Sources: SIX Financial Information; WSJ Market Data Group
Region/Country Index
Prime rate
NYSE NYSE Amer.
455.65
International Stock Indexes
Americas
Brazil
Canada
Mexico
Chile
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.
545.98
-0.72
Philadelphia Stock Exchange
World
Late Trading
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
600.68
1.90
187.53
54.15
2.966
1274.10
0.64
0.25
0.002
5.90
0.32
600.68
527.06
0.34 195.14
54.45
0.46
3.93
0.07
0.47 1346.00
166.50
42.53
2.56
1127.80
% Chg
11.93
YTD
% chg
5.89
0.67 -2.59
0.80
15.56
-1.98 -20.35
0.20 10.79
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
B8 | Tuesday, October 31, 2017
THE WALL STREET JOURNAL.
* *
BIGGEST 1,000 STOCKS
How to Read the Stock Tables
The following explanations apply to NYSE,
NYSE Arca, NYSE MKT and Nasdaq Stock
Market listed securities. Prices are composite
quotations that include primary market trades
as well as trades reported by Nasdaq OMX
BXSM (formerly Boston), Chicago Stock
Exchange, CBOE, National Stock Exchange, ISE
and BATS.
The list comprises the 1,000 largest
companies based on market capitalization.
Underlined quotations are those stocks with
large changes in volume compared with the
issue’s average trading volume.
Boldfaced quotations highlight those issues
whose price changed by 5% or more if their
previous closing price was $2 or higher.
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most recent
four quarters.
FD-First day of trading.
h-Does not meet continued listing
standards
lf-Late filing
q-Temporary exemption from Nasdaq
requirements.
t-NYSE bankruptcy
v-Trading halted on primary market.
vj-In bankruptcy or receivership or
being reorganized under the
Bankruptcy Code, or securities
assumed by such companies.
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Monday, October 30, 2017
Stock
Net
Sym Close Chg
NYSE
ABB
ABB 25.38
AES
AES 10.74
Aflac
AFL 83.83
AGCO
AGCO 71.40
AT&T
T
33.54
AbbottLabs ABT 54.29
AbbVie
ABBV 90.96
s Accenture ACN 143.29
AcuityBrands AYI 165.48
Adient
ADNT 83.50
t AdvanceAuto AAP 82.00
AdvSemiEngg ASX 6.15
Aegon
AEG 5.83
AerCap
AER 52.52
Aetna
AET 171.23
AffiliatedMgrs AMG 185.50
AgilentTechs A
67.49
AgnicoEagle AEM 45.23
Agrium
AGU 108.35
AirProducts APD 159.95
AlaskaAir ALK 66.46
Albemarle ALB 139.51
Alcoa
AA 47.42
AlexandriaRealEst ARE 121.72
Alibaba
BABA 181.58
Alleghany Y
564.96
Allegion
ALLE 81.97
Allergan
AGN 178.64
AllianceData ADS 224.47
s AllianceBernstein AB 26.10
AlliantEnergy LNT 43.18
s AllisonTransm ALSN 42.30
Allstate
ALL 94.07
s AllyFinancial ALLY 26.23
AlticeUSA ATUS 23.52
Altria
MO 64.05
AlumofChina ACH 19.20
Ambev
ABEV 6.35
s Ameren
AEE 61.83
AmericaMovil AMX 16.98
AmericaMovil A AMOV 16.76
AEP
AEP 74.17
s AmericanExpress AXP 95.07
AmericanFin AFG 105.36
AIG
AIG 64.78
AmerTowerREIT AMT142.87
AmerWaterWorks AWK 87.76
Amerigas APU 45.04
Ameriprise AMP 158.30
AmerisourceBrgn ABC 76.93
s Ametek
AME 67.63
Amphenol APH 85.76
AnadarkoPetrol APC 48.69
Andeavor ANDV 104.92
AB InBev BUD 120.81
AnnalyCap NLY 11.56
AnteroResources AR 18.96
s Anthem
ANTM 209.46
Aon
AON 143.45
Apache
APA 40.81
ApartmtInv AIV 44.20
ApolloGlobalMgmt APO 31.45
AquaAmerica WTR 35.42
Aramark
ARMK 43.46
ArcelorMittal MT 28.91
ArcherDaniels ADM 42.81
Arconic
ARNC 24.78
s AristaNetworks ANET 196.16
ArrowElec ARW 83.21
AstraZeneca AZN 33.77
Athene
ATH 52.94
AtmosEnergy ATO 86.94
Autohome ATHM 56.97
Autoliv
ALV 123.01
AutoZone AZO 590.15
Avalonbay AVB 181.89
Avangrid
AGR 50.83
AveryDennison AVY 105.32
AxaltaCoating AXTA 32.43
BB&T
BBT 49.11
0.02
-0.04
-0.11
-1.40
-0.43
-1.08
-0.97
0.01
6.79
-0.70
0.07
-0.17
-0.02
0.09
-1.89
-5.18
-0.48
-0.19
1.04
-0.93
-0.12
0.43
-0.49
-0.44
5.43
-2.31
1.68
-0.18
-7.36
-0.20
-0.26
-0.64
0.34
-0.05
-0.17
-0.87
-1.07
-0.04
0.03
-0.10
-0.08
0.15
-0.72
0.29
0.23
3.84
0.09
0.04
-2.32
0.55
-1.56
-0.84
-0.12
-0.82
1.12
-0.05
0.21
-1.88
-2.73
0.07
-0.17
-0.82
-0.20
-0.17
-0.22
-0.26
0.17
0.51
-0.56
0.28
-0.30
-0.35
0.02
-1.14
6.98
0.24
-0.21
-0.79
-0.72
0.37
Stock
Net
Sym Close Chg
BCE
BCE 46.47 0.04
BHPBilliton BHP 40.79 0.13
BHPBilliton BBL 36.02 0.05
s BP
BP 39.62 0.52
BRF
BRFS 13.37 -0.48
BT Group BT 17.56 0.06
BWX Tech BWXT 60.26 0.23
BakerHughes BHGE 31.50 0.20
Ball
BLL 42.64 -0.13
BancoBilbaoViz BBVA 8.61 0.29
BancodeChile BCH 92.57 1.54
BancoMacro BMA 127.26 -4.74
s BcoSantChile BSAC 31.61 0.81
BancoSantander SAN 6.73 0.20
BanColombia CIB 38.03 -1.54
BankofAmerica BAC 27.60 -0.20
BankofMontreal BMO 77.98 -0.02
BankNY Mellon BK 51.65 -0.25
BkNovaScotia BNS 64.61 0.02
Barclays
BCS 9.66 0.04
Bard CR
BCR 326.87 -1.22
BarrickGold ABX 14.69 0.01
BaxterIntl BAX 64.57 -1.11
BectonDickinson BDX 208.65 -1.45
Berkley
WRB 68.75 -0.81
BerkHathwy A BRK.A 281940340.00
BerkHathwy B BRK.B 187.85 -0.74
BerryGlobal BERY 59.80 -0.54
BestBuy
BBY 55.38 0.18
Bio-RadLab A BIO 219.01 -3.10
BlackKnight BKI 45.95 -0.50
BlackBerry BB 11.09 0.40
BlackRock BLK 472.29 -2.84
BlackstoneGroup BX 33.05 -0.45
t BoardwalkPipe BWP 14.20 0.30
Boeing
BA 259.25 2.79
BorgWarner BWA 52.39 -0.48
BostonProperties BXP 120.81 -0.42
BostonScientific BSX 28.16 -0.34
s Braskem
BAK 32.56 3.25
Bristol-Myers BMY 60.84 0.90
BritishAmTob BTI 64.62 -0.96
BroadridgeFinl BR 85.64 -0.31
BrookfieldMgt BAM 42.02 0.21
BrookfieldInfr BIP 42.47 -0.03
Brown&Brown BRO 49.49 -0.19
Brown-Forman A BF.A 55.83 -0.16
Brown-Forman B BF.B 55.71 -0.17
BuckeyePtrs BPL 52.21 -0.34
Bunge
BG 69.27 -0.55
BurlingtonStores BURL 89.00 -1.87
CBD Pao
CBD 23.41 -1.15
CBRE Group CBG 39.24 -0.13
CBS A
CBS.A 57.49 -0.19
CBS B
CBS 56.12 -0.63
s CF Industries CF 37.37 0.26
s CGI Group GIB 53.78 0.17
CIT Group CIT 47.07 -0.77
CMS Energy CMS 47.80 -0.40
s CNA Fin
CNA 53.56 2.77
CNOOC
CEO 134.30 3.39
CPFLEnergia CPL 16.70 -0.21
CRH
CRH 37.29 -0.29
t CVS Health CVS 68.45 -0.54
s CabotOil
COG 27.19 0.44
CamdenProperty CPT 91.09 -0.16
CampbellSoup CPB 46.36 -1.77
CIBC
CM 88.60 0.33
CanNtlRlwy CNI 81.21 -0.07
CanNaturalRes CNQ 34.80 0.97
CanPacRlwy CP 174.74 0.37
s Canon
CAJ 37.49 -0.04
CapitalOne COF 92.43 -0.35
t CardinalHealth CAH 61.70 -0.31
Carlisle
CSL 110.49 -0.70
CarMax
KMX 74.95 0.59
Carnival
CCL 66.02 -1.19
Carnival
CUK 66.35 -0.94
Caterpillar CAT 136.49 -1.32
Celanese A CE 104.84 -0.19
Cemex
CX
8.04 -0.17
CenovusEnergy CVE 9.66
...
Centene
CNC 93.81 -0.60
CenterPointEner CNP 29.47 -0.28
Stock
Net
Sym Close Chg
CentraisElBras EBR 6.79
t CenturyLink CTL 18.40
Chemours CC 56.99
Chevron
CVX 114.39
ChinaEastrnAir CEA 25.75
s ChinaLifeIns LFC 16.60
ChinaMobile CHL 50.32
ChinaPetrol SNP 73.93
ChinaSoAirlines ZNH 37.52
ChinaTelecom CHA 50.05
ChinaUnicom CHU 14.23
t Chipotle
CMG 268.70
Chubb
CB 152.89
ChunghwaTelecom CHT 33.94
Church&Dwight CHD 44.81
Cigna
CI 197.72
CimarexEnergy XEC 117.14
Citigroup
C
73.78
CitizensFin CFG 38.08
Clorox
CLX 125.32
Coach
COH 39.90
Coca-Cola KO 45.86
Coca-Cola Euro CCE 40.35
Coca-Cola Femsa KOF 68.39
Colgate-Palmolive CL 69.20
ColonyNorthStar CLNS 12.47
Comerica
CMA 78.82
SABESP
SBS 9.13
ConagraBrands CAG 33.53
ConchoRscs CXO 132.80
ConocoPhillips COP 51.39
ConEd
ED 85.90
ConstBrands A STZ 213.00
s ConstBrands B STZ.B213.52
ContinentalRscs CLR 40.45
Cooper
COO 242.75
Corning
GLW 31.26
Coty
COTY 14.97
Credicorp
BAP 209.69
CreditSuisse CS 15.92
CrestwoodEquity CEQP 23.80
s CrownCastle CCI 106.11
CrownHoldings CCK 59.27
Cullen/Frost CFR 98.99
s Cummins
CMI 180.35
DTE Energy DTE 110.34
DXC Tech DXC 91.18
Danaher
DHR 91.81
Darden
DRI 82.77
DaVita
DVA 61.07
s Deere
DE 132.30
DellTechnologies DVMT 83.15
DelphiAutomotive DLPH 98.25
DeltaAir
DAL 50.33
DeutscheBank DB 16.26
DevonEnergy DVN 36.00
Diageo
DEO 136.56
DigitalRealty DLR 117.59
DiscoverFinSvcs DFS 66.51
Disney
DIS 98.04
DolbyLab
DLB 57.68
DollarGeneral DG 81.23
s DominionEner D
81.48
Domino's
DPZ 181.70
Donaldson DCI 47.38
DouglasEmmett DEI 39.58
Dover
DOV 95.85
DowDuPont DWDP 71.68
DrPepperSnap DPS 85.05
DrReddy'sLab RDY 36.15
DukeEnergy DUK 88.11
DukeRealty DRE 28.38
ENI
E
32.21
EOG Rscs EOG 99.53
EQT
EQT 61.95
EQT Midstream EQM 72.38
EastmanChem EMN 91.82
Eaton
ETN 79.23
EatonVance EV 50.10
Ecolab
ECL 130.92
s Ecopetrol
EC 10.99
EdisonInt
EIX 79.59
EdwardsLife EW 101.63
EmersonElectric EMR 67.34
-0.41
0.92
-0.24
0.85
-0.22
-0.06
-0.32
0.97
0.67
-0.88
-0.16
-7.42
0.14
-0.04
-0.51
-4.22
1.69
-0.09
-0.37
-1.71
-0.38
-0.21
-0.50
-1.49
-1.20
-0.01
-0.97
-0.27
0.05
0.43
0.18
-0.02
1.10
0.73
1.08
-1.68
-0.25
0.06
-0.97
0.13
-0.10
2.92
...
-2.41
0.85
-0.49
-0.73
-0.44
-0.56
-0.82
-0.95
-0.73
-0.48
-0.23
-0.06
0.12
0.04
1.04
-0.27
-0.27
0.30
-2.03
0.97
-2.98
-0.74
-0.16
-0.15
-0.86
-0.70
0.20
0.16
-0.24
0.34
1.06
-1.36
0.51
-1.18
-0.54
-0.82
-1.07
0.20
0.12
-0.29
-0.04
New Highs and Lows | WSJ.com/newhighs
Monday, October 30, 2017
Stock
DynegyUn
NYSE highs - 115 Dynegy
Ecopetrol
AberdeenJapanEqu JEQ
Accenture
ACN
AllianceBernstein AB
AllisonTransm ALSN
AllyFinancial
ALLY
AlonUSAPartners ALDW
Ameren
AEE
Ameresco
AMRC
AmericanExpress AXP
Ametek
AME
Anthem
ANTM
AristaNetworks ANET
BP
BP
BcoSantChile BSAC
BeazerHomes BZH
BlkRkSci&Tech BST
Braskem
BAK
CF Industries CF
CGI Group
GIB
CNA Fin
CNA
CabotOil
COG
CadenceBancorp CADE
CalAtlantic
CAA
Canon
CAJ
Chegg
CHGG
ChinaLifeIns
LFC
ChoiceHotels CHH
ComfortSystems FIX
ConstBrands B STZ.B
CrownCastle
CCI
Cummins
CMI
CurtissWright CW
DaqoNewEnergy DQ
Deere
DE
DominionDiamond DDC
DominionEner D
Domtar
UFS
DynegyPfdA
DYNpA
9.18
143.78
26.65
43.68
26.55
13.08
62.00
8.05
96.12
70.26
212.07
200.82
39.75
32.02
20.44
26.57
33.73
38.06
53.85
54.35
27.31
24.69
50.48
37.70
16.50
16.76
70.15
44.05
213.67
110.66
180.86
118.49
38.00
133.76
14.26
82.05
46.14
41.33
0.7
...
-0.8
-1.5
-0.2
5.7
...
-2.5
-0.8
-2.3
-0.9
0.3
1.3
2.6
1.1
0.9
11.1
0.7
0.3
5.5
1.6
-0.5
21.3
-0.1
-1.1
-0.4
0.1
0.5
0.3
2.8
0.5
1.2
3.4
-0.7
0.6
1.2
1.5
5.0
FidelityNatlFin
FirstAmerFin
GlobalPayments
GraniteConstr
GranitePointWi
GreatPlainsEner
GrubHub
HawaiianElec
HollyFrontier
DR Horton
Huntsman
HyattHotels
InstalledBldg
InvescoMtgPfdB
InvescoMtg7.5%PfdC
iStarPfdD
Kemper
KenonHoldings
KeysightTechs
Kraton
KronosWorldwide
Kyocera
LyondellBasell
MGIC Investment
MI Homes
MarathonPetrol
MarriottVacations
Mastercard
MettlerToledo
MicroFocus
NewJerseyRscs
NewResidInvt
NextEraEnergyUn
ONE Gas
OaktreeSpecNts24
Och-Ziff
Oppenheimer A
OwensCorning
52-Wk %
Sym Hi/Lo Chg Stock
DYNC
DYN
EC
FNF
FAF
GPN
GVA
GPMTw
GXP
GRUB
HE
HFC
DHI
HUN
H
IBP
IVRpB
IVRpC
STARpD
KMPR
KEN
KEYS
KRA
KRO
KYO
LYB
MTG
MHO
MPC
VAC
MA
MTD
MFGP
NJR
NRZ
NEEpQ
OGS
OSLE
OZM
OPY
OC
85.58
12.84
11.15
37.25
54.07
101.99
64.92
18.55
32.97
61.07
36.28
37.26
44.58
32.00
63.14
67.50
26.44
25.73
25.69
64.95
17.50
44.33
49.50
27.20
69.25
107.83
14.39
33.49
59.57
133.12
151.48
680.50
34.32
44.45
17.91
70.05
76.59
25.19
3.95
21.00
81.57
5.4
5.6
1.9
0.8
-0.4
0.3
1.1
1.6
0.3
-0.6
-0.2
1.8
...
1.0
0.3
0.8
0.1
...
0.3
5.3
2.3
-0.1
-1.5
-3.8
3.9
7.1
...
3.4
1.0
-0.4
0.3
-0.6
0.9
-0.3
-2.5
0.5
-1.1
-0.1
-0.8
4.0
2.6
52-Wk %
Sym Hi/Lo Chg
PCM Fund
PCM
PerkinElmer
PKI
PulteGroup
PHM
QuakerChemical KWR
QuintilesIMS
Q
RH
RH
RockwellCollins COL
Rogers
ROG
RoperTech
ROP
RoyalDutchA RDS.A
RoyalDutchB RDS.B
SabineRoyalty SBR
SantanderConUSA SC
SpiritRealtyPfdA SRCpA
Square
SQ
STMicroelec
STM
Strats GSG GJS GJS
Synnex
SNX
TE Connectivity TEL
TRI Pointe
TPH
TaiwanSemi
TSM
TeledyneTech TDY
Teradyne
TER
ThorIndustries THO
Toll Bros
TOL
Total
TOT
ToyotaMotor TM
Valhi
VHI
VersumMaterials VSM
WNS
WNS
WasteMgt
WM
Watsco
WSO
WestlakeChem WLK
WilliamLyonHomes WLH
Winnebago
WGO
Yelp
YELP
12.13
72.82
30.33
157.12
108.63
91.81
135.80
148.16
258.81
62.23
64.50
41.95
16.81
24.74
35.81
23.97
20.27
134.96
89.71
17.75
42.66
168.94
42.90
135.12
45.74
55.62
124.44
4.22
41.32
38.30
82.87
167.36
87.22
25.39
49.15
47.20
0.2
-1.2
-0.9
-2.6
-0.5
1.5
0.3
1.9
-0.2
1.5
1.5
1.0
3.9
...
1.6
1.1
-0.5
-0.1
0.1
0.9
...
0.4
-0.1
-0.2
-0.1
1.3
0.1
2.3
...
-1.1
-0.5
-0.3
1.3
0.2
-0.9
3.9
AdvanceAuto AAP
AllianzGIConv24 CBH
Fund
Data provided by
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply,
12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r
apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not
available due to incomplete price, performance or cost data. NE-Not released by Lipper;
data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
Fund
Monday, October 30, 2017
Net YTD
Net YTD
NAV Chg %Ret Fund
American Century Inv
44.45 +0.07
Ultra
American Funds Cl A
31.71 -0.08
AmcpA p
AMutlA p 40.96 -0.16
27.44 +0.01
BalA p
BondA p
12.96 +0.04
62.78 +0.06
CapIBA p
CapWGrA 52.05 +0.07
56.84 +0.21
EupacA p
FdInvA p
63.43 +0.02
51.26
...
GwthA p
10.48
...
HI TrA p
41.05 -0.14
ICAA p
IncoA p
23.41 -0.01
44.94 +0.04
N PerA p
46.99 +0.05
NEcoA p
NwWrldA 66.01 +0.17
SmCpA p
56.20 +0.06
13.00 +0.01
TxExA p
45.33 -0.16
WshA p
Baird Funds
AggBdInst 10.89 +0.03
CorBdInst 11.25 +0.03
BlackRock Funds A
GlblAlloc p 20.26 +0.01
BlackRock Funds Inst
23.00 -0.09
EqtyDivd
20.39 +0.02
GlblAlloc
7.85
...
HiYldBd
StratIncOpptyIns 9.97 -0.01
Bridge Builder Trust
10.20 +0.03
CoreBond
Dimensional Fds
5GlbFxdInc 11.04 +0.01
EmgMktVa 30.26 -0.06
EmMktCorEq 22.27 -0.02
27.4
18.2
12.8
12.3
3.4
11.6
20.6
28.6
18.7
21.9
6.7
14.6
10.4
27.2
30.7
28.3
22.2
4.7
14.9
3.9
4.3
11.4
12.7
11.7
7.7
4.3
3.8
2.4
28.1
30.2
IntlCoreEq
IntlVal
IntSmCo
IntSmVa
US CoreEq1
US CoreEq2
US Small
US SmCpVal
US TgdVal
USLgVa
NAV Chg %Ret Fund
14.19 +0.06
19.90 +0.07
21.45 +0.12
23.43 +0.12
21.94 -0.12
20.83 -0.13
36.17 -0.49
38.76 -0.49
24.96 -0.23
38.78 -0.20
23.9
21.5
25.4
23.9
15.2
13.2
7.6
4.1
4.8
12.1
Dodge & Cox
Balanced
GblStock
Income
Intl Stk
Stock
109.07 -0.16 9.0
13.93 -0.02 17.0
13.84 +0.03 4.1
46.57 +0.17 22.2
201.56 -0.72 12.5
DoubleLine Funds
TotRetBdI 10.71 +0.03 3.7
Edgewood Growth Instituti
EdgewoodGrInst 29.27 -0.04 31.8
Federated Instl
StraValDivIS 6.36 -0.02 10.7
Fidelity
500IdxInst 90.04 -0.29 16.7
500IdxInstPrem 90.04 -0.28 16.8
500IdxPrem 90.04 -0.28 16.8
ExtMktIdxPrem r 62.30 -0.49 13.5
IntlIdxPrem r 43.16 +0.17 22.3
SAIUSLgCpIndxFd 13.80 -0.05 16.7
TMktIdxF r 74.65 -0.30 16.2
TMktIdxPrem 74.64 -0.30 16.2
USBdIdxInstPrem 11.61 +0.03 3.2
Fidelity Advisor I
NwInsghtI 33.35 +0.01 24.9
Fidelity Freedom
16.68 +0.02 13.1
FF2020
FF2025
14.43 +0.01 14.0
FF2030
Freedom2020 K
Freedom2025 K
Freedom2030 K
Freedom2035 K
Freedom2040 K
Net YTD
NAV Chg %Ret
18.07 +0.01
16.68 +0.01
14.43 +0.01
18.08 +0.02
15.16 +0.01
10.65
...
Fidelity Invest
23.61 -0.01
Balanc
86.89 +0.29
BluCh
126.65 +0.07
Contra
126.65 +0.07
ContraK
CpInc r
10.31 +0.01
41.26 +0.15
DivIntl
181.80 +0.55
GroCo
GrowCoK 181.75 +0.55
7.93 +0.02
InvGB
11.29 +0.03
InvGrBd
LowP r
52.62 -0.08
LowPriStkK r 52.58 -0.08
105.39 +0.01
MagIn
OTC
107.71 +0.39
23.12 +0.02
Puritn
SrsEmrgMkt 21.25 +0.05
SrsGroCoRetail 17.86 +0.06
SrsIntlGrw 16.19 +0.07
10.84 +0.05
SrsIntlVal
TotalBond 10.68 +0.03
Fidelity Selects
Biotech r 220.25 +0.81
First Eagle Funds
60.41 -0.06
GlbA
FPA Funds
35.24 -0.05
FPACres
FrankTemp/Frank Adv
IncomeAdv 2.36
...
FrankTemp/Franklin A
7.45 +0.01
CA TF A p
16.4
NS
NS
NS
NS
NS
13.8
31.7
29.5
29.6
10.7
23.9
32.9
33.0
3.5
4.0
14.8
14.9
22.1
35.2
15.9
35.4
33.7
26.5
18.3
3.9
26.5
11.3
9.3
7.7
4.9
10.87 0.5
13.00 -1.1
13.40 2.2
68.01 -0.8
11.65 -10.1
8.95 -2.9
61.53 -0.5
10.39 -3.1
17.07 5.3
268.18 -2.7
44.24 -9.4
3.69 -2.4
31.55 -9.9
11.75 -6.5
5.20 -3.7
9.81 -0.7
34.67 0.7
14.10 -1.7
20.26 -1.8
2.72 -4.8
0.29 -3.8
58.76 -2.3
37.25 0.9
50.82 2.7
18.62 -4.3
1.92 -0.5
54.41 -6.1
9.82 -4.1
15.01 -0.2
67.25 -1.5
24.34 -6.0
22.10 -4.6
101.82 -1.7
25.72 -0.6
11.35 -4.6
12.35 -0.8
15.53 2.3
14.11 2.4
7.79 -4.0
12.76 -1.4
29.07 -3.3
4.41 0.2
11.12 -3.2
NYSE Arca highs - 95
ARKIndlInnovation ARKQ
ARKWebx.0ETF ARKW
AdvShNewTech FNG
81.13 0.1 AGFiQ US NeutrMom MOM
9.16 -2.2 CSOPChinaCSI300AH HAHA
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.
0.37
0.16
0.04
0.05
-0.26
0.02
0.29
-0.38
0.42
-0.38
-0.34
-0.63
-1.60
-1.02
2.17
-0.30
-0.01
0.79
-0.17
-0.16
-0.98
-0.47
-2.75
1.59
0.10
-0.48
0.31
-0.35
-0.55
1.88
-0.19
-1.17
-1.82
0.37
-1.67
-0.38
0.25
-3.02
0.04
-0.34
0.25
-1.64
-0.68
0.70
-0.34
-0.19
...
...
0.20
-0.60
-1.30
-0.77
-0.02
1.18
-0.38
-0.91
-1.27
-0.22
-0.31
-0.17
-0.02
0.46
0.31
-0.22
0.28
-0.82
-2.12
-0.37
0.10
-0.19
-0.12
-0.20
-0.30
-0.49
0.03
-1.25
-0.11
-0.44
0.50
0.14
-0.64
-0.89
-0.02
0.06
-0.71
-1.05
0.30
0.65
0.12
-0.30
0.74
0.64
-2.03
0.17
-1.56
-0.23
0.01
-0.14
-0.36
-0.81
-3.31
-1.31
0.30
0.19
0.24
0.10
-0.85
-0.45
Stock
33.13
42.88
22.68
24.58
33.34
-0.3
0.5
0.6
1.2
1.1
Net
Sym Close Chg
IllinoisToolWks ITW 157.35
Infosys
INFY 14.89
Ingersoll-Rand IR
88.88
Ingredion
INGR 124.51
ICE
ICE 65.26
InterContinentl IHG 55.39
IBM
IBM 154.36
IntlFlavors IFF 146.77
IntlPaper
IP
57.19
Interpublic IPG 19.31
InvitationHomes INVH 22.87
IronMountain IRM 40.11
IsraelChemicals ICL
4.15
ItauUnibanco ITUB 13.13
JPMorganChase JPM 101.41
JacobsEngineering JEC 58.46
JamesHardie JHX 15.39
JanusHenderson JHG 34.71
J&J
JNJ 140.00
JohnsonControls JCI 42.14
JuniperNetworks JNPR 24.92
KAR Auction KAR 46.91
KB Fin
KB 52.60
KKR
KKR 20.05
KT
KT 14.18
KSCitySouthern KSU 104.97
t Kellogg
K
58.87
KeyCorp
KEY 18.23
s KeysightTechs KEYS 44.25
KilroyRealty KRC 70.30
KimberlyClark KMB 111.27
KimcoRealty KIM 18.43
KinderMorgan KMI 18.10
Knight-Swift KNX 40.99
Kohl's
KSS 41.50
KoninklijkePhil PHG 40.26
KoreaElcPwr KEP 17.48
Kroger
KR 20.64
s Kyocera
KYO 69.25
LATAMAirlines LTM 13.64
L Brands
LB 42.83
LG Display LPL 12.99
LINE
LN 41.80
L3 Tech
LLL 187.77
LabCpAm LH 154.17
LambWeston LW 50.38
LasVegasSands LVS 61.46
Lazard
LAZ 47.38
Lear
LEA 173.29
Leggett&Platt LEG 47.20
Leidos
LDOS 61.94
Lennar A
LEN 55.68
Lennar B
LEN.B 47.66
LennoxIntl LII 191.14
LeucadiaNatl LUK 25.32
t Level3Comms LVLT 52.70
LibertyProperty LPT 42.81
EliLilly
LLY 82.65
LincolnNational LNC 76.40
LionsGate A LGF.A 29.05
LionsGate B LGF.B 27.66
LiveNationEnt LYV 43.11
LloydsBanking LYG 3.68
LockheedMartin LMT 308.63
Loews
L
49.46
Lowe's
LOW 79.41
s LyondellBasell LYB 106.00
M&T Bank MTB 166.90
MGM Resorts MGM 30.57
MPLX
MPLX 35.30
MSCI
MSCI 117.65
Macerich
MAC 55.70
MacquarieInfr MIC 69.96
t Macy's
M 18.84
MagellanMid MMP 68.77
MagnaIntl MGA 54.46
Manpower MAN 121.85
ManulifeFin MFC 20.22
MarathonOil MRO 14.16
s MarathonPetrol MPC 59.06
Markel
MKL 1097.02
Marsh&McLennan MMC 80.62
MartinMarietta MLM 217.86
Masco
MAS 39.49
s Mastercard MA 148.95
McCormick MKC 97.98
McCormickVtg MKC.V 97.16
McDonalds MCD 166.23
McKesson MCK 135.02
Medtronic MDT 80.53
t Merck
MRK 54.71
MetLife
MET 53.97
s MettlerToledo MTD 675.22
MichaelKors KORS 48.80
s MicroFocus MFGP 34.28
MidAmApt MAA 101.99
MitsubishiUFJ MTU 6.86
MizuhoFin MFG 3.68
MobileTeleSys MBT 10.56
MohawkIndustries MHK 262.96
MolsonCoors B TAP 78.95
Monsanto MON 121.19
Moody's
MCO 142.98
MorganStanley MS 50.46
Mosaic
MOS 20.85
MotorolaSolutions MSI 90.37
NRG Energy NRG 25.01
52-Wk %
Sym Hi/Lo Chg Stock
AquaVenture WAAS
BlueCapReins BCRH
BoardwalkPipe BWP
CVS Health
CVS
Cabco JCP PFH PFH
CapsteadMtg CMO
CardinalHealth CAH
Celestica
CLS
CenturyLink
CTL
Chipotle
CMG
CircorIntl
CIR
ContainerStore TCS
CooperT&R
CTB
Corts JC KTP KTP
EastmanKodak KODK
EtnVncFR2022 EFL
EducationRealty EDR
Evertec
EVTC
GeneralElec
GE
IndependenceContr ICD
KKRIncomeOppsRt KIOr
Kellogg
K
KinderMorganPfdA KMIpA
Level3Comms LVLT
Macy's
M
McEwenMining MUX
Merck
MRK
Netshoes
NETS
NuvMN QualMuni NMS
Omnicom
OMC
Owens&Minor OMI
Qudian
QD
Smucker
SJM
SynovusFinlPfdC SNVpC
TimeInc.
TIME
TriangleCap
TCAP
UnderArmour A UAA
UnderArmour C UA
Vipshop
VIPS
WideOpenWest WOW
WorldFuelSvcs INT
XeriumTech
XRM
Yext
YEXT
NYSE lows - 45
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
EnbridgeEnPtrs EEP 15.02
Enbridge
ENB 38.58
Encana
ECA 11.28
EnelAmericas ENIA 10.59
EnelGenChile EOCC 26.97
EnergyTrfrEquity ETE 17.69
EnergyTransfer ETP 17.30
Entergy
ETR 86.39
EnterpriseProd EPD 24.80
Equifax
EFX 109.01
EquityLife ELS 87.76
EquityResdntl EQR 67.02
EssexProp ESS 260.80
EsteeLauder EL 110.85
EverestRe RE 239.12
EversourceEner ES 62.49
Exelon
EXC 40.24
ExtraSpaceSt EXR 81.09
ExxonMobil XOM 83.54
FMC
FMC 92.35
FactSet
FDS 188.12
FederalRealty FRT 120.98
FedEx
FDX 227.72
Ferrari
RACE 117.18
FiatChrysler FCAU 17.25
FibriaCelulose FBR 15.73
s FidelityNatlFin FNF 37.15
FNFV Group FNFV 17.20
FidelityNtlInfo FIS 96.07
58.com
WUBA 64.79
s FirstAmerFin FAF 53.17
FirstData
FDC 17.80
FirstRepBank FRC 97.48
FirstEnergy FE 32.67
FleetCorTech FLT 163.70
Flowserve FLS 43.88
Fluor
FLR 42.99
FomentoEconMex FMX 88.34
FordMotor F
12.10
ForestCIty A FCE.A 24.51
Fortis
FTS 36.99
Fortive
FTV 72.46
FortBrandsHome FBHS 66.15
Franco-Nevada FNV 79.94
FranklinRscs BEN 42.54
Freeport-McMoRan FCX 13.94
FreseniusMed FMS 48.42
GGP
GGP 19.95
Gallagher AJG 62.74
Gap
GPS 26.08
GardnerDenver GDI 29.12
Gartner
IT 124.38
Gazit-Globe GZT 9.52
GeneralDynamics GD 206.17
t GeneralElec GE 20.41
GeneralMills GIS 50.66
GeneralMotors GM 43.37
Genpact
G
30.20
GenuineParts GPC 88.04
Gerdau
GGB 3.37
Gildan
GIL 31.05
GlaxoSmithKline GSK 36.69
s GlobalPayments GPN 101.88
GoDaddy
GDDY 46.32
Goldcorp
GG 13.38
GoldmanSachs GS 240.89
Graco
GGG 130.75
Grainger
GWW 199.39
s GreatPlainsEner GXP 32.85
GpoAvalAcciones AVAL 8.37
GpFinSantandMex BSMX 8.48
GrupoTelevisa TV 22.34
GuidewireSoftware GWRE 77.40
HCA Healthcare HCA 76.18
HCP
HCP 25.60
HDFC Bank HDB 90.68
HP
HPQ 21.39
HSBC
HSBC 48.74
Halliburton HAL 42.93
Hanesbrands HBI 22.66
HarleyDavidson HOG 47.20
Harris
HRS 135.64
HartfordFinl HIG 55.18
HealthcareAmer HTA 29.89
Heico
HEI 90.58
Heico A
HEI.A 75.90
Herbalife
HLF 72.29
Hershey
HSY 104.73
Hess
HES 43.66
HewlettPackard HPE 13.98
Hilton
HLT 72.65
s HollyFrontier HFC 36.91
HomeDepot HD 165.31
HondaMotor HMC 31.10
Honeywell HON 144.64
HormelFoods HRL 30.15
s DR Horton DHI 44.31
HostHotels HST 19.30
HuanengPower HNP 26.35
Hubbell
HUBB 125.12
Humana
HUM 255.66
HuntingtonIngalls HII 232.15
s Huntsman HUN 31.36
s HyattHotels H
62.71
ICICI Bank IBN 9.04
ING Groep ING 18.55
Invesco
IVZ 36.04
IDEX
IEX 127.96
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.
52-Wk %
Sym Hi/Lo Chg Stock
Net
Sym Close Chg
Stock
45.45
15.63
21.47
30.77
132.16
211.80
71.07
71.38
46.38
146.42
107.30
49.62
19.20
49.47
30.49
107.57
50.79
29.32
109.15
103.41
183.55
24.24
50.40
31.05
84.87
46.66
26.41
30.82
161.26
30.70
29.96
90.97
63.47
76.34
38.03
151.67
130.06
70.76
148.41
152.39
104.07
166.82
29.21
32.57
101.87
42.97
16.22
93.83
53.60
33.23
0.4
0.3
2.1
0.2
2.2
-0.3
-0.5
...
-0.4
0.9
1.1
9.4
2.9
0.3
-0.4
-0.2
-0.1
-0.2
-0.5
-0.2
-0.1
0.7
...
-0.1
-0.2
3.6
0.8
0.2
0.4
...
-0.4
0.2
-0.1
...
-0.1
...
-0.2
...
-0.2
0.4
0.3
0.3
0.8
...
...
-0.3
0.3
-0.5
0.1
1.8
Net
Sym Close Chg
NTTDoCoMo DCM 24.27
NVR
NVR 3240.00
NationalGrid NGG 60.77
NatlOilwell NOV 34.28
NatlRetailProp NNN 40.18
NewOrientalEduc EDU 82.75
NY CmntyBcp NYCB 12.54
NewellBrands NWL 40.46
NewfieldExpln NFX 30.09
NewmontMining NEM 36.23
NexaResources NEXA 18.05
NextEraEnergy NEE 155.36
NielsenHoldings NLSN 37.66
Nike
NKE 55.27
NiSource
NI
26.25
NobleEnergy NBL 28.27
Nokia
NOK 4.82
NomuraHoldings NMR 5.76
Nordstrom JWN 40.00
NorfolkSouthern NSC 132.80
NorthropGrumman NOC 296.37
Novartis
NVS 81.74
NovoNordisk NVO 49.86
Nucor
NUE 58.47
NuSTAREnergy NS 33.95
OGE Energy OGE 36.90
ONEOK
OKE 54.04
OccidentalPetrol OXY 64.96
s Och-Ziff
OZM 3.89
Olin
OLN 35.73
OmegaHealthcare OHI 30.97
t Omnicom OMC 67.52
Oracle
ORCL 50.68
Orange
ORAN 16.41
OrbitalATK OA 133.00
Orix
IX
86.17
Oshkosh
OSK 89.57
s OwensCorning OC 81.49
PG&E
PCG 57.27
PLDT
PHI 32.66
PNC Fin
PNC 137.16
POSCO
PKX 73.48
PPG Ind
PPG 116.16
PPL
PPL 37.49
PVH
PVH 127.36
PackagingCpAm PKG 115.57
PaloAltoNtwks PANW 147.57
ParkHotels PK 28.16
ParkerHannifin PH 181.94
ParsleyEnergy PE 25.73
Pearson
PSO 9.38
PembinaPipeline PBA 33.08
Pentair
PNR 70.10
PepsiCo
PEP 109.65
s PerkinElmer PKI 71.83
Perrigo
PRGO 83.70
PetroChina PTR 65.60
PetroleoBrasil PBR 10.60
PetroleoBrasilA PBR.A 10.24
Pfizer
PFE 35.15
PhilipMorris PM 104.70
Phillips66 PSX 91.02
PinnacleFoods PF 53.66
PinnacleWest PNW 88.22
PioneerNatRscs PXD 146.26
PlainsAllAmPipe PAA 19.78
PlainsGP
PAGP 20.20
PolarisIndustries PII 117.25
Potash
POT 19.31
Praxair
PX 147.45
PrincipalFin PFG 66.52
Procter&Gamble PG 86.27
Progressive PGR 48.66
Prologis
PLD 64.08
PrudentialFin PRU 111.60
Prudential PUK 48.75
PublicServiceEnt PEG 49.55
PublicStorage PSA 208.75
s PulteGroup PHM 29.79
t Qudian
QD 22.19
QuestDiag DGX 93.78
s QuintilesIMS Q
107.17
RELX
RENX 22.41
RELX
RELX 23.21
RPM
RPM 53.18
RalphLauren RL 91.81
RaymondJames RJF 85.01
Raytheon RTN 179.58
RealtyIncome O
54.17
RedHat
RHT 121.10
RegencyCtrs REG 62.24
RegionsFin RF 15.60
ReinsuranceGrp RGA 150.61
RepublicServices RSG 65.50
ResMed
RMD 82.99
RestaurantBrands QSR 64.60
RiceEnergy RICE 28.04
RioTinto
RIO 47.33
RobertHalf RHI 51.00
Rockwell
ROK 187.00
s RockwellCollins COL 135.69
RogersComm B RCI 52.82
Rollins
ROL 43.23
s RoperTech ROP 257.05
RoyalBkCanada RY 78.73
RoyalBkScotland RBS 7.58
RoyalCaribbean RCL 121.99
s RoyalDutchA RDS.A 62.19
52-Wk %
Sym Hi/Lo Chg Stock
ColumbiaIndiaCnsmr INCO
ColumbiaIndiaInfr INXX
ColumbiaIndiaSC SCIN
ColumbiaSustIntl ESGN
CSAxela3xLgBrent UBRT
CS FI LC Grwth FLGE
DirexHmbldrBull3 NAIL
DirexJapanBl3 JPNL
DirexS&P500Bull2X SPUU
DirexSemiBl3 SOXL
DirexTechBull3 TECL
ETRACSMnly2xLevISE HOML
ElemntsSpectrmLC EEH
FidelityMSCIIT FTEC
FidelityMomFactor FDMO
FT DJ Internet FDN
FT TechAlphaDEX FXL
FlexShCurrHdDM TLDH
FlexMrnUSMktFtrTlt TILT
GuggS&P500PureGr RPG
GuggS&P500Top50 XLG
GuggSolar
TAN
GuggUltraShrtDur GSY
IQMergerArbitrage MNA
iPath MSCI India INP
iPathPBLivestock LSTK
iShCurrHdgMSCICda HEWC
iShCurHdMSCIEurozn HEZU
iShU.S.Technology IYW
iShEdgeMSCIIntlMom IMTM
iShEdgeMSCIMultif ACWF
iShGlobal100 IOO
iShJPX-Nikkei400 JPXN
iShMSCIJapanSC SCJ
iShMSCITaiwanCap EWT
iShMornLCGrowth JKE
iShRussell1000Gwth IWF
iShRussellTop200Gr IWY
iShS&P500Growth IVW
iShGlobalTechETF IXN
iShGlobalConsDiscr RXI
iShNorthAmerTech IGM
JPMDivRetEurCur JPEH
KnowldgLdrDevWrld KLDW
PIMCOEnhShMaturity MINT
PwrShCleantch PZD
PwrShDBComTr DBC
PwrShDynMkt PWC
PwrShDynSemicon PSI
PwrShS&P500Mom SPMO
Net YTD
NAV Chg %Ret Fund
-1.71
-0.11
-2.27
-1.51
-0.22
0.36
0.68
-1.79
-0.76
-0.36
-0.09
0.11
-0.12
-0.32
-0.36
-0.25
0.26
0.19
-1.78
-0.27
-0.28
-0.08
0.05
-0.30
0.06
0.71
-1.39
-0.14
-0.04
-0.28
-1.14
0.07
0.20
-0.68
-1.08
-0.42
0.03
0.07
2.58
0.29
-1.88
-0.13
-0.12
-1.33
-1.23
-0.44
-0.29
0.18
-1.65
-2.25
-0.42
-2.33
-1.96
-2.20
-0.44
1.39
-0.41
-1.21
-0.93
-0.18
-0.02
-0.08
-0.01
0.63
1.51
-1.20
6.99
-0.92
-0.68
-0.02
-2.35
-0.86
-0.38
-0.85
0.29
-0.08
-3.52
-0.01
0.35
0.59
2.94
-0.38
0.74
-0.67
0.43
-1.38
-1.72
0.84
-0.60
-0.77
-3.53
-0.32
-3.78
-0.22
0.30
1.44
-0.10
...
...
-1.38
0.52
-0.33
-3.42
-0.45
-0.09
-0.82
-0.33
Stock
-0.12
...
-0.27
1.05
0.20
-2.61
-0.31
0.46
-0.01
0.43
0.65
-0.48
-0.91
-0.69
-0.02
0.32
-0.09
-0.13
-0.97
-0.85
-1.29
1.02
0.36
-1.02
-0.45
-0.18
-0.04
-0.09
-0.03
0.33
-0.13
-1.04
-0.20
0.26
-0.30
1.29
-1.45
2.08
0.14
0.30
-1.01
-1.93
-1.77
-0.26
0.31
-1.36
0.91
-0.36
-1.94
0.43
0.04
0.32
-0.03
-0.95
-0.89
0.55
1.31
-0.13
-0.26
-0.45
-1.24
-0.97
-0.48
-0.69
0.88
0.39
0.30
-1.65
0.20
-0.69
-1.58
-0.77
-0.24
-0.61
-0.42
-0.10
0.06
1.85
-0.28
-1.08
-1.90
-0.49
0.14
0.12
-0.77
0.72
-0.48
-0.70
0.24
0.33
-0.28
-0.12
-1.58
0.12
-1.43
-0.55
-0.47
-0.12
-1.84
-1.78
0.39
0.13
-0.21
-0.52
-0.17
0.05
-2.22
0.92
27.90
105.99
53.77
123.23
70.10
123.11
86.70
89.32
77.42
83.36
32.07
110.79
62.73
68.10
70.62
62.92
50.16
50.18
16.30
17.65
33.15
62.59
62.57
28.63
101.13
16.13
162.95
136.45
107.83
133.15
31.21
26.79
77.24
27.96
26.72
31.94
28.91
31.18
28.93
27.20
1.0
...
2.6
...
0.5
0.3
0.9
0.5
0.3
...
-0.2
0.1
-0.4
...
0.6
0.2
0.3
0.1
0.7
0.2
2.6
0.1
0.8
1.8
...
0.6
0.3
...
0.1
-0.2
0.2
1.1
...
...
0.3
-0.2
0.1
0.2
...
...
NYSE Arca lows - 24
PathS&P500VIXMT VXZ
BrandValueETF BVAL
CSAxela3xInvBrent DBRT
DirexRgBanksBear3X WDRW
DirexSemiBear3 SOXS
DirexTechBear3 TECS
ETRACSAlerianMLP AMUB
GlbXMSCIPakistan PAK
19.07
14.56
72.22
34.01
16.45
7.38
17.02
13.81
-0.2
-0.9
-7.4
3.4
-0.7
-1.1
-5.2
-2.0
Net
Sym Close Chg
s RoyalDutchB RDS.B 64.42
SAP
SAP 113.80
S&P Global SPGI 156.25
SINOPECShanghai SHI 60.77
SK Telecom SKM 25.51
SLGreenRealty SLG 94.53
Salesforce.com CRM 100.70
Sanofi
SNY 47.43
s SantanderConUSA SC 16.69
Sasol
SSL 28.85
Scana
SCG 45.91
Schlumberger SLB 64.11
SchwabC
SCHW 44.85
SealedAir SEE 44.10
SemicondctrMfg SMI 7.29
SempraEnergy SRE 117.45
SensataTech ST 48.83
ServiceCorp SCI 35.25
ServiceMaster SERV 44.25
ServiceNow NOW 125.05
ShawComm B SJR 22.58
SherwinWilliams SHW 394.25
ShinhanFin SHG 45.79
Shopify
SHOP 109.36
SimonProperty SPG 157.74
SmithAO
AOS 59.18
Smith&Nephew SNN 38.01
t Smucker
SJM 101.91
Snap
SNAP 15.68
SnapOn
SNA 157.09
SOQUIMICH SQM 59.79
Sony
SNE 38.85
Southern
SO 52.09
SoCopper SCCO 42.77
SouthwestAirlines LUV 54.73
SpectraEnerPtrs SEP 42.79
SpectrumBrands SPB 108.12
SpiritAeroSys SPR 80.41
Sprint
S
6.34
s Square
SQ 35.75
StanleyBlackDck SWK 161.63
StateStreet STT 93.29
Statoil
STO 20.54
Steris
STE 92.13
s STMicroelec STM 23.55
Stryker
SYK 155.37
SumitomoMits SMFG 8.14
SunCommunities SUI 90.00
SunLifeFinancial SLF 38.98
SuncorEnergy SU 33.86
SunTrustBanks STI 60.35
SynchronyFin SYF 32.60
Syngenta SYT 92.12
Sysco
SYY 54.69
TAL Education TAL 27.18
s TE Connectivity TEL 89.50
Telus
TU 36.52
Ternium
TX 31.66
TIM Part
TSU 18.08
TJX
TJX 69.35
TableauSoftware DATA 79.53
s TaiwanSemi TSM 42.13
TargaResources TRGP 42.20
Target
TGT 59.55
TataMotors TTM 33.33
TechnipFMC FTI 27.04
TeckRscsB TECK 20.76
TelecomArgentina TEO 32.57
TelecomItalia TI
8.65
TelecomItalia A TI.A 7.01
s TeledyneTech TDY 168.88
Teleflex
TFX 236.76
TelefonicaBras VIV 15.32
Telefonica TEF 10.27
TelekmIndonesia TLK 30.00
Tenaris
TS 27.11
s Teradyne
TER 42.69
TevaPharm TEVA 13.55
Textron
TXT 52.60
ThermoFisherSci TMO 192.02
ThomsonReuters TRI 47.02
s ThorIndustries THO 134.68
3M
MMM 231.02
Tiffany
TIF 93.55
TimeWarner TWX 98.49
s Toll Bros
TOL 45.51
Torchmark TMK 84.52
Toro
TTC 62.50
TorontoDomBk TD 56.80
s Total
TOT 55.51
TotalSystem TSS 70.98
s ToyotaMotor TM 124.39
TransCanada TRP 47.64
TransDigm TDG 277.20
TransUnion TRU 52.47
Travelers
TRV 132.62
TurkcellIletism TKC 9.40
TurquoiseHill TRQ 3.05
Twitter
TWTR 21.25
TylerTech TYL 176.48
TysonFoods TSN 71.47
UBS Group UBS 16.92
UDR
UDR 38.56
UGI
UGI 48.11
US Foods USFD 26.99
UltraparPart UGP 23.98
t UnderArmour A UAA 16.41
t UnderArmour C UA 14.74
52-Wk %
Sym Hi/Lo Chg Stock
PwrShS&PIntlDev IDMO
PwrShTreaColl CLTL
ProShS&P500xHlth SPXV
ProShrUltraJapan EZJ
ProShrUltraQQQ QLD
ProShrUlSemi USD
ProShrUlTech ROM
SPDRACWILowCarbon LOWC
SPDRMSCIJapanStrat QJPN
SPDR NYSE Tech XNTK
SPDRS&P500Growth SPYG
SPDRMomentumTilt MMTM
SPDRS&P500Fossil SPYX
SchwabUS LC Grw SCHG
SPDR S&P Semi XSD
TechSelectSector XLK
USAACoreInterBd UITB
USAACoreST USTB
USBrentOilFd BNO
USDieselHeatingOil UHN
US3xOilFd
USOU
VanEckGlbAltEn GEX
VanEckIndiaSC SCIF
VanEckOilRefin CRAK
VanEckSemiconduc SMH
VanEckVietnam VNM
VangdInfoTech VGT
VangdGrowth VUG
VangdMegaGrwth MGK
VangdS&P500 Grw VOOG
WisdTrEuropeHdgSM EUSC
WisdTrGlbxUSDiv DXUS
WisdTrJapanSC DFJ
XtrkrsMSCIAWxUS DBAW
XtrkrsMSCIAWxUSHi HDAW
XtrkrsMSCIEAFE DBEF
XtrkrsMSCIEurope DBEU
XtrkrsMSCIEurozone DBEZ
XtrkrsMSCIGermany DBGR
XtrkrsMuniInfra RVNU
Net YTD
NAV Chg %Ret Fund
Stock
0.96
-0.35
-5.91
-0.53
-0.12
-0.94
...
-0.10
0.62
0.11
-0.59
0.56
-0.06
-0.50
0.28
1.81
-0.56
-0.37
-0.94
-0.68
0.51
-3.04
0.14
2.09
1.08
-0.28
0.03
-1.80
0.24
-1.36
0.09
1.02
...
0.29
0.62
0.32
-0.05
0.28
-0.65
0.55
-3.08
-0.22
0.44
-0.67
0.26
-4.37
0.01
-0.07
-0.35
0.10
-0.27
-0.34
0.01
-0.11
-0.83
0.08
0.14
-0.59
-0.93
-1.19
0.19
-0.02
0.14
-0.71
0.57
0.47
-0.10
-0.62
0.10
0.12
0.66
-6.03
-0.56
0.26
-0.07
0.47
-0.05
0.23
-0.43
-0.40
...
-0.28
-3.72
-0.50
-0.30
-0.03
-0.44
-1.34
0.06
0.73
0.47
0.16
...
-0.30
-1.28
1.56
-0.16
0.02
-0.43
-3.85
0.43
-0.09
0.05
-0.37
-0.15
-0.76
0.37
0.34
Net
Sym Close Chg
Stock
Unilever
UN 56.93
Unilever
UL 55.52
UnionPacific UNP 116.37
UnitedContinental UAL 59.04
UnitedMicro UMC 2.59
UPS B
UPS 118.09
UnitedRentals URI 143.59
US Bancorp USB 54.26
US Steel
X
26.46
UnitedTech UTX 119.83
UnitedHealth UNH 209.39
UniversalHealthB UHS 102.28
UnumGroup UNM 52.40
VEREIT
VER 7.82
VF
VFC 69.91
Visa
V
110.04
VailResorts MTN 226.37
Vale
VALE 9.82
ValeroEnergy VLO 78.40
Vantiv
VNTV 69.23
VarianMed VAR 103.52
Vedanta
VEDL 21.00
VeevaSystems VEEV 59.75
Ventas
VTR 63.25
Verizon
VZ 47.83
VistraEnergy VST 18.57
VMware
VMW 119.93
VornadoRealty VNO 72.38
VoyaFinancial VOYA 40.33
VulcanMaterials VMC 121.97
WABCO
WBC 146.39
WEC Energy WEC 67.47
W.P.Carey WPC 68.38
Wabtec
WAB 76.56
Wal-Mart WMT 86.95
WasteConnections WCN 71.08
s WasteMgt WM 81.87
Waters
WAT 196.22
s Watsco
WSO 165.23
Wayfair
W 69.66
WellCareHealth WCG 181.18
WellsFargo WFC 55.85
Welltower HCN 67.21
WestPharmSvcs WST 101.35
WestarEnergy WR 53.43
WestAllianceBcp WAL 55.78
WesternGasEquity WGP 39.01
WesternGasPtrs WES 47.60
WesternUnion WU 19.72
s WestlakeChem WLK 85.63
WestpacBanking WBK 25.61
WestRock WRK 60.32
Weyerhaeuser WY 35.61
WheatonPrecMetals WPM 21.21
Whirlpool WHR 161.66
Williams
WMB 28.54
WilliamsPartners WPZ 37.33
Wipro
WIT 5.24
WooriBank WF 44.90
Wyndham WYN 105.74
XPO Logistics XPO 69.05
XcelEnergy XEL 49.29
Xerox
XRX 30.23
Xylem
XYL 64.64
YPF
YPF 24.47
YumBrands YUM 74.96
YumChina YUMC 40.43
ZTO Express ZTO 15.93
ZayoGroup ZAYO 35.83
ZimmerBiomet ZBH 121.35
Zoetis
ZTS 63.24
NASDAQ
AGNC Invt AGNC 20.31
Ansys
ANSS 135.80
ASML
ASML 177.93
Abiomed
ABMD 179.48
ActivisionBliz ATVI 65.30
AdobeSystems ADBE 176.03
AkamaiTech AKAM 52.46
AlexionPharm ALXN 127.81
s AlignTech ALGN 235.57
Alkermes
ALKS 48.89
AlnylamPharm ALNY 122.96
Alphabet A GOOGL 1033.13
Alphabet C GOOG 1017.11
Altaba
AABA 68.86
s Amazon.com AMZN 1110.85
Amdocs
DOX 64.96
Amerco
UHAL 395.37
AmericanAirlines AAL 47.25
Amgen
AMGN 174.59
s AnalogDevices ADI 91.32
s Apple
AAPL 166.72
AppliedMaterials AMAT 55.90
ArchCapital ACGL 99.83
Atlassian
TEAM 48.31
s Autodesk ADSK 123.91
ADP
ADP 116.98
Baidu
BIDU 236.42
BankofOzarks OZRK 46.50
Biogen
BIIB 315.80
BioMarinPharm BMRN 81.97
Bioverativ BIVV 55.84
bluebirdbio BLUE 141.60
BrighthouseFin BHF 62.46
s Broadcom AVGO 261.23
52-Wk %
Sym Hi/Lo Chg Stock
GuggBS2025HYCpBd BSJP
KraneEMCnsTech KEMQ
ProShShortQQQ PSQ
ProShUlt3xShCrude OILD
ProShrUS MSCI Jpn EWV
ProShUltShtQQQ QID
ProShrUSSemi SSG
ProShrUSTech REW
ProShsVIXMTFut VIXM
TeucriumWheatFund WEAT
UBSProSh3xInvCrd WTID
USAA EM ValMom UEVM
USAA USA SC Val USVM
US3xShrtOilFd USOD
Velocity3xInvCrude DWT
VelocityShVIXTail BSWN
25.02
24.08
36.46
14.93
28.22
14.10
10.64
17.18
23.08
6.25
21.27
49.73
49.54
15.84
19.48
18.09
-0.2
-0.9
-0.2
-1.2
-0.2
-0.4
-0.5
-0.1
0.1
-0.5
-1.1
-1.0
-1.3
-1.3
-1.0
-0.2
NYSE American highs - 3
CentralSecs
CET
LGLRtWi
LGLr
LadenburgThalmann LTS
26.86 -0.3
0.13 -10.6
2.99 -1.3
NYSE American lows - 2
GEE Group
IsoRay
JOB
ISR
2.64 -3.8
0.40 -10.9
Nasdaq highs - 112
AdamasPharm ADMS 24.55 21.0
AdvAcceltrApp AAAP 80.70 10.4
95.00 -0.6
AdvEnergyInds AEIS
AlignTech
ALGN 243.27 -0.2
Amazon.com AMZN1122.79 0.9
91.96 0.1
AnalogDevices ADI
AndinaAcqnIIRt ANDAR 1.05 124.4
AndinaAcqnIIWt ANDAW 0.99 229.6
Apple
AAPL 168.07 2.3
ArenaPharm
ARNA 28.70 0.5
ArrowInvDWATact DWAT 11.64 -0.1
Autodesk
ADSK 124.28 0.3
AveXis
AVXS 106.27 1.5
42.40 0.4
AvisBudget
CAR
BankofCommerce BOCH 12.40 -1.7
Blackbaud
BLKB 103.41 -1.1
BlueBuffaloPet BUFF 29.84 -1.5
BlueprintMed BPMC 73.05 -2.1
Broadcom
AVGO 262.20 3.3
Brooks Auto
BRKS 33.46 0.2
Bruker
BRKR 31.97 -1.4
Net YTD
NAV Chg %Ret Fund
-0.04
-0.01
-0.71
-1.21
0.05
-2.66
-2.35
-0.18
-0.62
0.76
-3.21
-1.21
-0.05
-0.07
-0.99
0.33
-0.95
-0.19
0.65
1.22
-2.83
0.03
0.31
0.75
-1.04
-1.73
-1.04
-0.54
-0.35
-0.48
-3.85
-0.37
-0.04
0.29
-1.22
-0.79
-0.44
-3.53
-0.58
2.11
-4.82
-0.02
0.05
0.19
0.06
-0.47
-0.07
-0.28
-0.54
1.06
0.03
-0.51
0.10
0.52
0.25
-0.08
0.43
0.06
-0.78
-0.82
-0.54
0.08
-0.25
-0.22
-0.05
-0.28
0.32
0.20
0.13
-3.11
-0.81
29.76
50.00
157.50
112.73
19.33
34.20
42.50
126.00
75.62
299.92
25.05
9.40
16.34
12.74
23.40
25.11
17.66
51.80
54.99
180.69
264.38
32.05
33.50
61.47
23.93
20.21
30.86
32.01
18.10
19.94
26.68
15.30
24.39
32.98
127.53
44.85
29.06
45.19
10.50
26.81
35.97
52.23
29.40
172.07
111.02
17.90
48.14
26.81
59.41
4.10
8.63
-2.7
-2.4
-0.9
-0.1
11.8
2.3
2.9
-1.4
0.2
-1.0
0.7
-0.1
1.2
2.0
0.2
-0.3
0.6
10.7
1.1
1.1
...
-1.1
-1.1
4.8
-0.1
0.7
0.6
-0.2
2.0
0.7
2.3
-1.0
0.1
-2.1
0.9
-0.6
1.4
-0.1
0.1
0.2
0.1
-0.2
...
0.3
0.1
9.0
1.2
-2.5
...
5.1
7.7
Net
Sym Close Chg
CA
CA 32.32
CDK Global CDK 66.36
CDW
CDW 69.31
CH Robinson CHRW 78.35
CME Group CME 136.11
CSX
CSX 51.60
CadenceDesign CDNS 42.90
Carlyle
CG 22.50
s CboeGlobalMkts CBOE 111.86
Celgene
CELG100.97
Cerner
CERN 66.46
CharterComms CHTR 323.98
CheckPointSftw CHKP 116.49
ChinaLodging HTHT 128.66
CincinnatiFin CINF 70.41
Cintas
CTAS 149.22
CiscoSystems CSCO 34.04
CitrixSystems CTXS 82.39
s Cognex
CGNX 123.66
s CognizantTech CTSH 75.51
Coherent
COHR 257.92
Comcast A CMCSA 36.50
CommerceBcshrs CBSH 57.63
CommScope COMM 32.00
Copart
CPRT 36.04
CoStarGroup CSGP 294.50
Costco
COST 160.23
Ctrip.com CTRP 47.01
t DISH Network DISH 48.39
DentsplySirona XRAY 61.28
DiamondbackEner FANG 106.20
DiscoveryComm B DISCB 24.00
DiscoveryComm A DISCA 18.98
DiscoveryComm C DISCK 17.93
DollarTree DLTR 91.44
E*TRADE ETFC 43.47
EastWestBancorp EWBC 60.34
eBay
EBAY 37.00
ElbitSystems ESLT146.91
ElectronicArts EA 117.58
Equinix
EQIX 459.73
Ericsson
ERIC 6.18
Exelixis
EXEL 26.08
Expedia
EXPE120.21
ExpeditorsIntl EXPD 58.57
ExpressScripts ESRX 61.35
F5Networks FFIV 119.63
s Facebook
FB 179.87
Fastenal
FAST 46.79
FifthThirdBncp FITB 29.01
s FirstSolar
FSLR 60.43
Fiserv
FISV 129.45
Flex
FLEX 17.87
FlirSystems FLIR 46.75
Fortinet
FTNT 39.50
Gaming&Leisure GLPI 36.16
Garmin
GRMN 56.49
GileadSciences GILD 75.99
Goodyear
GT 31.16
Grifols
GRFS 22.45
HD Supply HDS 35.25
Hasbro
HAS 95.47
HenrySchein HSIC 77.70
Hologic
HOLX 37.21
JBHunt
JBHT 105.26
HuntingtonBcshs HBAN 13.77
s IAC/InterActive IAC 127.23
IdexxLab
IDXX 164.41
IHSMarkit INFO 42.45
INC Research INCR 56.70
IPG Photonics IPGP 207.62
IRSA Prop IRCP 56.00
IcahnEnterprises IEP 55.13
Icon
ICLR 118.62
Illumina
ILMN 203.81
Incyte
INCY 114.24
s Intel
INTC 44.37
InteractiveBrkrs IBKR 53.18
Intuit
INTU 151.45
IntuitiveSurgical ISRG 376.09
IonisPharma IONS 58.31
JD.com
JD 37.42
s JackHenry JKHY 110.54
JazzPharma JAZZ 136.31
JetBlue
JBLU 18.94
KLA Tencor KLAC 107.35
t KraftHeinz KHC 75.27
LKQ
LKQ 36.52
LamResearch LRCX 206.20
LamarAdvertising LAMR 69.78
LibertyBroadbandA LBRDA 84.54
LibertyBroadbandC LBRDK 85.54
LibertyGlobal A LBTYA 30.93
LibertyGlobal B LBTYB 30.65
LibertyGlobal C LBTYK 30.11
LibertyLiLAC A LILA 21.21
LibertyLiLAC C LILAK 21.49
LibertyQVC A QVCA 22.32
LibertyVenturesA LVNTA 55.40
LibertyFormOne A FWONA 36.91
LibertyFormOne C FWONK 38.68
LibertyBraves A BATRA 23.91
LibertyBraves C BATRK 23.97
LibertySirius A LSXMA 42.10
LibertySirius C LSXMK 42.03
LincolnElectric LECO 90.55
LogitechIntl LOGI 34.98
LogMeIn
LOGM120.55
52-Wk %
Sym Hi/Lo Chg Stock
CNB FinPA
CCNE
CSW Industrials CSWI
CavcoIndustries CVCO
CboeGlobalMkts CBOE
Celcuity
CELC
Cellectis
CLLS
ChinaInternet CIFS
Cognex
CGNX
CognizantTech CTSH
CreditAcceptance CACC
CSX-LinksCrudeOil USOI
CymaBayTherap CBAY
CypressSemi CY
DataIO
DAIO
DavisFinl
DFNL
DavisWorldwide DWLD
ElectroScientific ESIO
FARO Tech
FARO
FS Bancorp
FSBW
Facebook
FB
FidelityNasdComp ONEQ
FirstBancshares FBMS
FirstLongIsland FLIC
FirstSolar
FSLR
FT CEFIncmOpp FCEF
FT NasdCleanEdge QCLN
FT NasdSemicon FTXL
FlexShUSQualLC QLC
FormFactor
FORM
GlbXInternetThings SNSR
HailiangEduc
HLG
HeritageCommerce HTBK
HorizNasd100 QYLD
HutchisonChina HCM
IAC/InterActive IAC
II-VI
IIVI
IntegratedDevice IDTI
Intel
INTC
InternetInitiat IIJI
iSectorsPostMPT PMPT
iShCommodSelStrat COMT
iShCoreS&PUSGrowth IUSG
iShCurrHdMSCIGrmny HEWG
iShPHLXSemicond SOXX
JackHenry
JKHY
Jewett-Cameron JCTCF
JunoTherap
JUNO
KellyServices A KELYA
LGI Homes
LGIH
LightpathTech LPTH
MAM Software MAMS
Net YTD
NAV Chg %Ret Fund
-0.19
0.02
-1.00
-1.59
1.16
-1.30
-0.54
-0.81
-0.37
-0.96
3.04
-0.54
-2.16
1.34
9.90
-0.42
0.85
-0.31
-0.69
0.11
3.67
-0.79
0.12
1.28
0.33
-1.27
-2.95
-0.74
8.06
-1.18
...
0.80
-1.17
8.33
Stock
-0.55
-0.69
-0.29
-1.47
-1.44
-0.94
-0.18
0.10
-0.09
2.80
1.15
4.22
-1.01
-1.78
-0.62
-2.34
-0.39
-0.31
-1.74
0.12
-3.09
-0.29
-1.12
0.29
0.16
-4.88
-2.15
-0.12
1.90
-0.07
1.63
1.00
-0.10
-0.05
-1.77
0.18
-0.85
0.20
-3.93
0.69
3.22
-0.02
-0.55
-3.58
-0.80
-0.84
-1.55
1.99
-0.40
-0.06
2.76
-0.73
-0.12
-0.42
0.76
-0.01
0.20
-1.08
-1.02
0.91
0.08
-1.67
1.15
-0.03
-4.35
-0.17
1.13
-3.96
-0.87
-1.55
-0.68
-0.25
0.22
-2.52
-6.23
-2.03
-0.03
-0.41
-2.01
2.31
1.91
0.06
0.10
2.36
-0.44
-0.72
-2.03
-0.22
-1.80
1.06
1.99
2.06
0.44
-0.40
0.49
0.01
0.14
-0.38
0.85
0.16
0.19
-0.57
-0.55
0.04
-0.04
-1.80
0.32
-1.50
lululemon LULU 61.72 -0.68
MKS Instrum MKSI 105.55 -1.30
MarketAxess MKTX 173.05 -2.54
Marriott
MAR 118.52 -0.35
MarvellTech MRVL 18.23 -0.21
s MatchGroup MTCH 26.21 0.20
MaximIntProducts MXIM 52.36 0.29
MelcoResorts MLCO 23.64 0.36
MercadoLibre MELI 234.50 -1.55
s MicrochipTech MCHP 95.21 0.49
MicronTech MU 41.65 0.80
Microsemi MSCC 52.64 -0.05
Microsoft MSFT 83.89 0.08
Middleby
MIDD 116.06 -1.05
Momo
MOMO 29.46 0.03
t Mondelez MDLZ 39.30 -1.38
MonsterBeverage MNST 56.83 0.08
Mylan
MYL 38.24 -0.11
NXP Semi NXPI 116.73 -0.20
Nasdaq
NDAQ 72.40 0.06
NatlInstruments NATI 45.05 -0.83
NetApp
NTAP 43.52 -0.49
Netease
NTES 276.51 -7.02
Netflix
NFLX 198.37 -1.17
NewsCorp A NWSA 13.81 0.12
NewsCorp B NWS 14.15 0.20
Nordson
NDSN 124.52 -1.64
NorthernTrust NTRS 94.65 -0.06
NorwegianCruise NCLH 54.80 -0.84
s NVIDIA
NVDA 203.84 1.98
OReillyAuto ORLY 213.79 -3.25
OldDomFreight ODFL 120.61 -3.23
s ON Semi
ON 20.96 0.21
OpenText OTEX 34.94 0.22
PTC
PTC 66.16 -0.27
Paccar
PCAR 70.45 -1.42
PacWestBancorp PACW 48.27 -0.65
Paychex
PAYX 64.47 -0.93
PayPal
PYPL 71.15 0.09
People'sUtdFin PBCT 18.63 -0.29
s PilgrimPride PPC 31.10 -0.11
Priceline
PCLN 1879.73-11.19
Qiagen
QGEN 33.78 -0.27
Qorvo
QRVO 76.25 2.53
Qualcomm QCOM 54.66 0.09
RandgoldRscs GOLD 98.83 1.34
RegenPharm REGN 406.52 -2.70
RossStores ROST 63.42 -0.40
Ryanair
RYAAY 105.04 1.21
SBA Comm SBAC 150.17 3.45
SEI Investments SEIC 64.11 -0.34
Sina
SINA 105.37 0.37
SS&C Tech SSNC 40.07 -0.54
SVB Fin
SIVB220.94 4.25
ScrippsNetworks SNI 83.43 0.02
Seagate
STX 36.68 -0.22
SeattleGenetics SGEN 62.69 -0.04
Shire
SHPG 145.76 3.59
SignatureBank SBNY 130.51 -2.68
SiriusXM
SIRI 5.51 -0.03
s Skyworks SWKS 112.00 4.09
Splunk
SPLK 66.34 -0.31
Starbucks SBUX 55.17 0.29
SteelDynamics STLD 37.74 -0.93
Stericycle SRCL 70.85 -0.15
Symantec SYMC 32.41 0.32
Synopsys SNPS 86.26 -0.93
TD Ameritrade AMTD 49.94 -0.57
TESARO
TSRO 114.74 -0.88
T-MobileUS TMUS 59.58 -3.37
TRowePrice TROW 92.42 -1.56
s TakeTwoSoftware TTWO 109.71 1.87
Tesla
TSLA 320.08 -0.79
TexasInstruments TXN 96.06 -0.82
TractorSupply TSCO 60.49 2.23
Trimble
TRMB 40.76 -2.13
21stCenturyFoxA FOXA 26.39 -0.02
21stCenturyFoxB FOX 25.75
...
UltaBeauty ULTA 201.69 2.76
UltimateSoftware ULTI 196.45 -1.30
UniversalDisplay OLED 138.60 2.50
VEON
VEON 3.85 -0.07
VeriSign
VRSN 107.58 -1.49
VeriskAnalytics VRSK 84.70 -0.24
VertxPharm VRTX 149.53 -0.58
t Viacom A VIA 30.30 -0.55
Viacom B VIAB 24.23 -0.43
Vodafone VOD 28.78 0.06
WPP
WPPGY 85.44 0.24
WalgreensBoots WBA 66.26 1.78
Weibo
WB 89.87 -1.02
WesternDigital WDC 85.79 -1.32
WillisTwrsWatson WLTW 161.01 -0.61
Workday
WDAY 108.42 -0.09
WynnResorts WYNN 141.21 -1.94
s Xilinx
XLNX 73.05 0.29
Yandex
YNDX 33.10 0.72
ZebraTech ZBRA 110.47 -1.14
Zillow A
ZG 40.77 -0.25
Zillow C
Z
40.88 -0.26
ZionsBancorp ZION 46.80 -0.31
NYSE AMER
CheniereEnergy LNG
CheniereEnerPtrs CQP
CheniereEnHldgs CQH
ImperialOil IMO
52-Wk %
Sym Hi/Lo Chg Stock
MGPIngredients MGPI
MatchGroup
MTCH
MazorRobotics MZOR
MerchantsBancorp MBIN
MicrochipTech MCHP
MonolithicPower MPWR
NV5Global
NVEE
NewaterTech NEWA
NuvNasd100Dyn QQQX
NVIDIA
NVDA
OldLineBcshs OLBK
ON Semi
ON
PICO
PICO
PilgrimPride
PPC
PinnacleEnt
PNK
PointerTel
PNTR
PwrShDWANasdMom DWAQ
PwrShQQQ 1 QQQ
ProShUltPrQQQ TQQQ
PumaBiotech PBYI
RBB Bancorp RBB
ROBOGlblRobotics ROBO
RockyBrands RCKY
SITO Mobile
SITO
Saia
SAIA
SelectiveIns
SIGI
Skyworks
SWKS
SolarEdgeTech SEDG
SoMO Bancorp SMBC
StrayerEd
STRA
SuperCom
SPCB
TPIComposites TPIC
TakeTwoSoftware TTWO
TivityHealth
TVTY
VangdRuss1000Grw VONG
VicShUS500Vol CFA
WisdTrGermanyHdg DXGE
Xilinx
XLNX
Xunlei
XNET
ZionsBancorpWt ZIONZ
66.69
26.42
61.48
17.99
95.49
121.62
58.30
14.48
23.43
206.09
30.44
21.00
20.20
31.73
25.88
18.35
102.63
152.19
130.08
128.30
24.88
40.20
20.10
8.60
67.35
59.45
112.30
32.70
39.80
100.72
4.29
23.92
110.00
47.90
133.30
46.85
32.56
73.46
9.59
12.86
2.2
0.8
2.3
1.8
0.5
-0.8
2.0
4.6
0.5
1.0
-0.6
1.0
-4.5
-0.4
0.5
0.6
-0.1
0.2
0.7
2.3
1.5
-0.1
-6.2
-1.9
-2.9
-1.6
3.8
1.2
-3.6
9.0
36.3
1.1
1.7
-2.3
-0.2
-0.6
0.1
0.4
17.1
16.9
Nasdaq lows - 58
ADMA Biologics ADMA 2.52 -8.3
AcadiaHealthcare ACHC 30.76 -5.8
Aceto
ACET 10.09 -3.2
1.72 -12.6
AchieveLifeSci ACHV
9.40 -3.6
AlcentraCapital ABDC
3.53 -3.2
AquaMetals
AQMS
ArcadiaBiosci RKDA
0.27 -6.1
0.15 -6.2
ArgosTherap
ARGS
Net YTD
NAV Chg %Ret Fund
Net
Sym Close Chg
Stock
46.40
28.11
25.03
32.23
0.60
-0.35
-0.01
0.32
52-Wk %
Sym Hi/Lo Chg
BedBath
BBBY
BlackRidgeAcqn BRACU
Cardtronics
CATM
DBVTechnologies DBVT
DHX Media VV DHXM
DISH Network DISH
DepoMed
DEPO
DigitalAlly
DGLY
DragonVictory LYL
Egalet
EGLT
ElbitImaging
EMITF
FTD
FTD
FiveStarSrLiving FVE
Francesca's
FRAN
GenMarkDiagn GNMK
GenoceaBiosci GNCA
IconixBrand
ICON
ImmunePharma IMNP
JMU
JMU
KraftHeinz
KHC
Lands'End
LE
LifePointHealth LPNT
MBFinancialPfdA MBFIP
MerrimackPharm MACK
Mondelez
MDLZ
Net1UEPS
UEPS
NetSolTech
NTWK
NewYorkMtgPfdD NYMTN
NovelionTherap NVLN
OaktreeSpecNts28 OCSLL
OfficeDepot
ODP
OrexigenTherap OREX
ParkCity
PCYG
ProShUltraProShQQQ SQQQ
RMG Networks RMGN
SPS Commerce SPSC
SearsHometown SHOS
SequentialBrands SQBG
SiennaBiopharm SNNA
Soligenix
SNGX
Tecogen
TGEN
Teligent
TLGT
Travelzoo
TZOO
UltragenyxPharm RARE
VS2xVIXMedTerm TVIZ
VeraBradley
VRA
Versartis
VSAR
Viacom A
VIA
VistaGenTherap VTGN
Vivus
VVUS
Net YTD
NAV Chg %Ret Fund
19.91 -1.9
10.05 -0.4
22.29 -1.6
21.94 -5.5
3.02 -3.2
46.07 4.1
4.69 -2.0
1.80 -2.6
6.80 -23.3
0.97 -1.5
2.41 ...
10.60 0.5
1.41 -5.0
6.33 -3.0
7.30 -2.5
1.06 1.7
1.81 -62.3
0.76 -3.6
0.99 -12.2
75.21 -2.6
10.55 -8.9
46.50 -4.5
25.35 -0.4
11.20 3.4
39.19 -3.4
9.00 -1.1
3.25 -2.9
23.83 -0.9
4.83 -3.3
25.02 -0.7
2.97 -18.3
1.58 -1.8
9.95 -1.8
23.30 -0.7
1.37 -4.3
45.03 -0.6
1.63 -5.7
2.50 -2.3
15.22 4.0
1.74 -9.4
2.81 -0.7
5.72 -2.0
6.80 -4.8
44.56 -2.9
10.73 -0.2
7.12 -2.6
1.85 -1.3
30.20 -1.8
0.82 -3.8
0.64 -6.7
Net YTD
NAV Chg %Ret
33.04 -0.03 15.6 Welltn
234.57 -0.74 16.8
10.29 +0.03 4.9 ITIGradeAdml 9.82 +0.02 4.3 TxMIn r
Fed TF A p 11.98 +0.01 3.0 TotRt
14.13 +0.04 22.7 LifeGro
42.66 -0.03 11.2 InstIdx
234.59 -0.73 16.8
26.86
... 12.3 WndsrII
LTGradeAdml 10.61 +0.07 9.2 ValAdml
2.38
... 7.5 PIMCO Funds A
IncomeA p
39.68 -0.25 11.6 LifeMod
38.82 -0.18 11.6 InstPlus
InstTStPlus 57.67 -0.24 16.2
26.70 -0.06 20.4 VANGUARD INDEX FDS
NA
... NA MidCpAdml 183.99 -0.91 14.1 WdsrllAdml 68.90 -0.31 11.6 PrmcpCor
RisDv A p 60.54 -0.32 16.0 IncomeFd
40.64 -0.21 14.1
MidCpInst
33.00
... 14.7 500
MuHYAdml 11.38 +0.01 6.7 WellsIAdml 65.19 +0.02 8.0 SelValu r
PIMCO Funds D
FrankTemp/Franklin C
237.73 -0.75 16.7
... 4.4 WelltnAdml 73.68 -0.05 11.3 STAR
27.08 +0.01 15.1 ExtndIstPl 201.99 -1.60 13.5 MidCpIstPl 200.45 -0.99 14.1
NA
... NA MuIntAdml 14.17
... 7.4 IncomeFd
Income C t 2.41
MuLTAdml 11.65
... 5.4 WndsrAdml 78.76 -0.23 14.7 STIGrade
10.69 +0.01 2.2 SmValAdml 55.09 -0.53 7.3 SmCapInst 68.29 -0.51 11.6
PIMCO Funds Instl
FrankTemp/Temp A
... 2.6 VANGUARD FDS
... 9.5 TotBd2
TgtRe2015 15.89
NA
... NA MuLtdAdml 10.97
GlBond A p 12.11 -0.10 3.2 IncomeFd
10.74 +0.03 3.3 STIGradeInst 10.69 +0.01 2.4
TotBdInst
10.77 +0.03 3.3
... 1.4
MuShtAdml 15.79
TgtRe2020 31.54 +0.01 11.6
Growth A p 26.84 +0.10 13.9 PIMCO Funds P
26.19 -0.12 13.5
17.84 +0.03 23.4
DivdGro
TotIntl
TotBdInst2 10.74 +0.03 3.3
134.56
-0.09
23.6
18.48
...
13.0
PrmcpAdml
r
TgtRe2025
NA
...
NA
IncomeP
FrankTemp/Temp Adv
64.27 -0.26 16.1
HlthCare r 210.23 -1.03 17.0
TotSt
TotBdInstPl 10.77 +0.03 3.3
REITAdml r 116.51 -0.16 2.4
TgtRe2030 33.38 -0.01 14.3
GlBondAdv p 12.06 -0.10 3.4 Price Funds
INSTTRF2020 22.48
... 11.6 TgtRe2035 20.50 -0.01 15.6 VANGUARD INSTL FDS
TotIntBdIdxInst 32.89 +0.06 2.0
BlChip
96.90 +0.05 33.5 SmCapAdml 68.29 -0.51 11.6
Harbor Funds
... 13.1 TgtRe2040 35.29 -0.04 16.8 BalInst
34.00 -0.04 10.9 TotIntlInstIdx r119.36 +0.22 23.6
INSTTRF2025 22.74
29.65 -0.07 13.2 STBondAdml 10.44 +0.01 1.5
CapApInst 75.04 +0.27 32.5 CapApp
22.92
-0.01
14.3 TgtRe2045 22.16 -0.03 17.3 DevMktsIndInst 14.15 +0.04 22.8 TotItlInstPlId r119.39 +0.23 23.6
INSTTRF2030
34.73 -0.11 11.9 STIGradeAdml 10.69 +0.01 2.3
69.44 +0.14 18.9 EqInc
IntlInst r
64.30 -0.27 16.2
69.14 -0.22 16.6 TotBdAdml 10.77 +0.03 3.3 INSTTRF2035 23.11 -0.02 15.5 TgtRe2050 35.65 -0.05 17.3 DevMktsInxInst 22.12 +0.07 22.8 TotStInst
EqIndex
Harding Loevner
81.85 -0.65 13.5 ValueInst
39.67 -0.25 11.5
13.56 +0.01 7.1 ExtndInst
69.94 +0.06 31.3 TotIntBdIdxAdm 21.92 +0.04 1.9 INSTTRF2040 23.29 -0.03 16.8 TgtRetInc
NA
... NA Growth
IntlEq
70.10 -0.01 23.4 Western Asset
HelSci
74.01 -0.37 25.3 TotIntlAdmIdx r 29.85 +0.06 23.6 INSTTRF2045 23.43 -0.04 17.3 TotIntBdIxInv 10.96 +0.02 1.9 GrwthInst
Invesco Funds A
38.97
+0.06
22.7
10.49
+0.04
2.0
IntlVal
InPrSeIn
CorePlusBdI
NA
... NA
64.29
-0.27
16.2
26.91
+0.01
7.9
TotStAdml
WellsI
39.38 -0.02 34.7
11.24 -0.02 7.6 InstlCapG
EqIncA
19.17 -0.01 25.4
IntlStk
John Hancock Class 1
15.28 +0.03 19.3
15.92 -0.01 12.8 IntlValEq
LSBalncd
91.74 -0.50 21.7
17.07 -0.02 16.1 MCapGro
LSGwth
30.92 -0.09 6.4
MCapVal
John Hancock Instl
55.27 -0.21 27.6
DispValMCI 23.87 -0.15 11.2 N Horiz
9.50 +0.02 3.6 Dividend announcements from October 30.
N
Inc
JPMorgan Funds
NA
... NA OverS SF r 11.30 +0.03 24.6
MdCpVal L
Amount
Amount
Payable /
Payable /
23.16
... 13.5
R2020
JPMorgan R Class
Symbol Yld % New/Old Frq
Company
Symbol Yld % New/Old Frq
Record
Record
17.86
... 15.2 Company
NA
... NA R2025
CoreBond
R2030
26.31 -0.01 16.8
Lazard Instl
Increased
Funds and investment companies
19.23
-0.02
18.0
R2035
EmgMktEq 19.39 -0.05 22.1
ABBV
27.63 -0.02 19.0 AbbVie
R2040
3.1 .71 /.64 Q
Feb15 /Jan12 Amplify YieldShs Sr Loan YESR 2.1 .14172 Q
Nov01 /Oct31
Loomis Sayles Fds
38.64 -0.16 14.8 Baker Hughes GE
BHGE 2.3
AFT 6.4
.18 /.17 Q Nov22 /Nov06 Apollo Sr Fltg Rate Fd
M
.09
Nov30 /Nov17
14.14 +0.02 6.7 Value
LSBondI
Dividend Changes
Lord Abbett A
PRIMECAP Odyssey Fds
35.36 -0.05
Principal Investors
DivIntlInst 13.89 +0.03
Prudential Cl Z & I
14.53 +0.04
TRBdZ
Schwab Funds
S&P Sel
40.19 -0.13
TIAA/CREF Funds
19.27 -0.08
EqIdxInst
IntlEqIdxInst 20.25 +0.06
Tweedy Browne Fds
28.30 -0.06
GblValue
VANGUARD ADMIRAL
500Adml 237.76 -0.74
BalAdml
33.99 -0.05
...
CAITAdml 11.81
CapOpAdml r154.08 -0.42
EMAdmr
36.89 -0.13
EqIncAdml 76.01 -0.41
ExtndAdml 81.85 -0.65
GNMAAdml 10.51 +0.02
GrwthAdml 70.09 -0.01
HlthCareAdml r 88.69 -0.44
...
HYCorAdml r 5.97
25.74 +0.08
InfProAd
IntlGrAdml 94.10 +0.21
ITBondAdml 11.43 +0.03
ShtDurIncmA p 4.28 +0.01 2.4 Growth r
Lord Abbett F
ShtDurIncm
4.27
...
Metropolitan West
NA
...
TotRetBd
NA
...
TotRetBdI
NA
...
TRBdPlan
MFS Funds Class I
40.73 -0.25
ValueI
MFS Funds Instl
IntlEq
25.35 +0.06
Mutual Series
GlbDiscA
32.53 -0.09
Oakmark Funds Invest
EqtyInc r
33.86 -0.11
84.58 -0.29
Oakmark
OakmrkInt 29.01 +0.11
Old Westbury Fds
LrgCpStr
14.82
...
Oppenheimer Y
42.03 -0.03
DevMktY
43.19 +0.21
IntGrowY
Parnassus Fds
43.64 -0.16
ParnEqFd
PIMCO Fds Instl
NA
...
AllAsset
2.5
NA
NA
NA
13.7
25.1
8.2
11.3
16.7
27.8
15.5
31.5
24.5
12.0
NA
23.5
26.3
5.7
16.8
16.2
22.4
13.0
16.8
10.9
4.7
24.0
26.3
13.4
13.5
2.0
23.4
17.0
7.1
1.9
39.8
3.9
Columbia Sportswear
Commerce Bancshares
Energy Transfer Equity
Entergy
Gorman-Rupp
Greenbrier Cos
Holly Energy Partners
Kimbell Royalty Partners
Principal Financial Group
Simon Property Group
Tompkins Financial
Union Bankshares
USD Partners
WestRock
Zions Bancorp
COLM
CBSH
ETE
ETR
GRC
GBX
HEP
KRP
PFG
SPG
TMP
UBSH
USDP
WRK
ZION
1.2
1.6
6.7
4.1
1.6
1.8
7.6
7.3
2.9
4.7
2.2
2.5
12.7
2.9
1.4
.19 /.18
.225 /.21429
.295 /.285
.89 /.87
.125 /.115
.23 /.22
.645 /.6325
.31 /.30
.49 /.47
1.85 /1.80
.47 /.45
.21 /.20
.345 /.34
.43 /.40
.16 /.12
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Q
Nov30 /Nov16
Dec18 /Nov30
Nov20 /Nov07
Dec01 /Nov09
Dec08 /Nov15
Dec06 /Nov15
Nov14 /Nov06
Nov13 /Nov06
Dec28 /Dec04
Nov30 /Nov16
Nov15 /Nov07
Nov27 /Nov13
Nov13 /Nov06
Nov20 /Nov10
Nov22 /Nov15
Reduced
SandRidge Mississip Tr
SandRidge Permian Trust
Westmoreland Resource
SDT
PER
WMLP
13.8 .0449 /.0482 Q
13.6 .095 /.119 Q
15.0 .1155 /.1333 Q
Nov24 /Nov10
Nov24 /Nov10
Nov14 /Nov07
Commerce Bancshares
PICO
FFIU
5.00
.06
Nov20 /Nov06
Nov01 /Oct31
AIF
7.5
.10
CBSH
1.6
5.00%
BUD
3.1
5.5
3.9
3.1
1.6
3.2
5.3
10.4
2.1
M
Nov30 /Nov17
Dec18 /Nov30
Foreign
Anheuser-Busch InBev ADR
Aspen Ins Hldgs Pfd
Cameco Corp
Gpo Aeroportuario Pac ADR
Imperial Oil
INVESCO
Norbord
Seadrill Partners
XL Group
AHLpC
CCJ
PAC
IMO
IVZ
OSB
SDLP
XL
1.85344 SA
Q
.3719
.07907 Q
1.49103 SA
.12651 Q
Q
.29
.4744 Q
Q
.10
Q
.22
Dec07 /Nov15
Jan01 /Dec15
Jan15 /Dec29
Nov17 /Nov06
Jan01 /Dec01
Dec04 /Nov14
Dec21 /Dec01
Nov14 /Nov07
Jan02 /Dec15
Special
Capitol Federal Finl
Heritage Financial
CFFN
HFWA
2.5
1.7
.29
.10
Dec01 /Nov17
Nov22 /Nov08
Suspended
Concurrent Computer
Initial
PICO Holdings
Spin Field UVA Uncons Med
Apollo Tactical Incm Fd
Stocks
CCUR
Q
Mar28 /
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 31, 2017 | B9
COMMODITIES
Futures Contracts
Open
Open
interest
2,285
160,580
652
378,303
80,848
16,133
14,370
10,395
28,939
4,152
19
69,929
579
141,273
591,778
320,386
130,863
253,904
204,531
264,983
14,299
132,537
19,399
156,468
311,708
208,539
83,414
171,174
126,741
79,424
Agriculture Futures
Corn (CBT)-5,000 bu.; cents per bu.
348.50
362.25
Dec
March'18
349.75
363.50
347.25
361.25
348.75
362.75
Settle
Open
interest
Chg
Oats (CBT)-5,000 bu.; cents per bu.
Dec
264.50
267.00
262.00
263.25 –2.00
5,170
March'18 268.75 271.00
266.75
268.00
–.50
2,063
Soybeans (CBT)-5,000 bu.; cents per bu.
Nov
975.25
981.50
971.25
972.75 –2.50 53,851
Jan'18
986.50
993.25
983.00
984.50 –2.00 301,600
Soybean Meal (CBT)-100 tons; $ per ton.
Dec
312.10
314.40
312.00
312.30
.20 133,089
Jan'18
314.00
316.50
313.90
314.30
.20 95,491
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
Dec
34.89
35.13
34.41
34.68
–.16 153,483
Jan'18
35.04
35.28
34.57
34.84
–.17 100,454
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
Nov
1162.00 1162.00
1138.00 1145.00 –10.00
1,739
Jan'18
1180.00 1192.00
1168.50 1176.50 –8.00
7,263
Wheat (CBT)-5,000 bu.; cents per bu.
Dec
427.50
428.25
t 422.50
424.75 –2.50 275,901
March'18 444.75 446.00
t 441.00
443.00 –2.25 118,712
Wheat (KC)-5,000 bu.; cents per bu.
Dec
425.50
425.75
421.00
421.75 –3.50 151,910
March'18 443.00 443.00
439.00
439.75 –3.25 87,691
Wheat (MPLS)-5,000 bu.; cents per bu.
Dec
617.00
620.00
614.75
618.50
1.50 35,016
March'18 629.00 632.50
627.00
631.25
2.75 25,168
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
Nov
158.450 160.300 s
157.750 158.325 1.850 12,253
Jan'18
157.775 159.825 s
157.125 157.350 1.400 26,001
Cattle-Live (CME)-40,000 lbs.; cents per lb.
Oct
119.000 120.350
119.000 119.575 4.200
762
Dec
122.750 123.825 s
122.325 123.400 2.575 136,050
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
Dec
64.450
65.300
64.325
65.175
.725 109,070
Feb'18
70.050
71.200 s
70.025
71.050
.800 55,380
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
Nov
447.00
452.00 s
444.80
448.40 –2.50
1,869
Jan'18
437.50
440.30
435.50
438.70 –5.50
4,281
Milk (CME)-200,000 lbs., cents per lb.
Oct
16.71
16.71
16.70
16.71
…
3,821
Nov
16.31
16.55
16.30
16.54
.12
4,618
Cocoa (ICE-US)-10 metric tons; $ per ton.
Dec
2,119
2,121
2,074
2,118
3 89,503
March'18
2,108
2,113
2,072
2,111
7 106,869
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Dec
127.00
127.75
125.05
125.90
–.70 117,380
March'18 130.30 131.20
128.65
129.45
–.70 65,497
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
March
14.70
14.82
14.58
14.73
.10 437,754
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
Nov
3.0800
3.1020
3.0800
3.1020 0.0070
Dec
3.1045
3.1180
3.0870
3.1120 0.0085
Gold (CMX)-100 troy oz.; $ per troy oz.
1270.00 1274.10
1267.90 1274.10
5.90
Nov
Dec
1274.30 1279.90
1269.80 1277.70
5.90
Feb'18
1278.10 1283.90
1274.00 1281.90
5.90
April
1280.60 1287.60
1278.70 1285.70
5.90
June
1284.40 1291.00
1282.60 1289.60
5.90
Dec
1298.70 1302.50
1296.80 1301.70
5.80
Palladium (NYM) - 50 troy oz.; $ per troy oz.
Dec
966.00
971.80
959.80
962.65
4.40
March'18 956.80 961.65
952.25
954.65
4.00
Platinum (NYM)-50 troy oz.; $ per troy oz.
914.40
917.20
914.00
918.90
8.00
Nov
Jan'18
916.90
924.00
916.50
922.70
8.10
Silver (CMX)-5,000 troy oz.; $ per troy oz.
16.715
16.845
16.715
16.802 0.095
Nov
Dec
16.850
16.900
16.690
16.847 0.095
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
Dec
54.16
54.46
53.75
54.15
0.25
Jan'18
54.35
54.64
53.96
54.37
0.28
Feb
54.45
54.72
54.07
54.48
0.30
March
54.45
54.75
54.16
54.53
0.32
June
54.25
54.50
53.90
54.26
0.25
Dec
53.08
53.31
52.70
53.04
0.15
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
1.8747
1.8825 s
1.8643
1.8777 .0108
Nov
Dec
1.8777
1.8814 s
1.8629
1.8762 .0100
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
Nov
1.7750
1.7783 s
1.7474
1.7641 –.0045
Dec
1.7248
1.7288 s
1.7010
1.7132 –.0042
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
Dec
2.938
3.006
t
2.936
2.966
.002
Jan'18
3.081
3.139
t
3.075
3.100 –.002
Feb
3.081
3.141
t
3.080
3.103 –.004
March
3.050
3.101
t
3.044
3.066 –.003
April
2.889
2.931
2.888
2.908
.005
May
2.885
2.913
2.879
2.893
.005
Contract
High hilo
Low
… 761,069
.25 331,412
Cash Prices | WSJ.com/commodities
Monday, October 30, 2017
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Monday
Monday
16.7350
12730
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
Energy
0.9971
1.0720
2.870
2.840
2.940
2.690
2.700
1.000
2.820
57.850
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
Other metals
LBMA Platinum Price PM
*917.0
Platinum,Engelhard industrial
920.0
Platinum,Engelhard fabricated
1020.0
Palladium,Engelhard industrial
974.0
Palladium,Engelhard fabricated
1074.0
Aluminum, LME, $ per metric ton
*2119.0
Copper,Comex spot
3.1020
Iron Ore, 62% Fe CFR China-s
58.0
Shredded Scrap, US Midwest-s,w
286
Steel, HRC USA, FOB Midwest Mill-s
n.a.
Metals
Fibers and Textiles
Gold, per troy oz
1275.81
1371.50
1272.00
1411.92
*1267.80
*1266.45
1328.18
1340.96
1340.96
1547.80
1254.81
1340.96
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
Silver, troy oz.
16.7700
20.1240
16.7850
20.9810
£12.6900
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
0.6100
0.6814
*79.10
n.a.
n.a.
Grains and Feeds
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, 5% Broken White, Thailand-l,w
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
n.a.
71
3.1575
80.4
470.2
233
88
223
2.9325
372.00
24.00
7.7900
Monday
308.80
9.3250
7.4850
4.2000
3.5375
5.2388
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
182.62
172.78
0.8481
2.2700
171.00
175.00
75.00
2344
1.2548
1.4486
0.8950
15.20
0.76
66.91
n.a.
0.9439
117.90
160.75
Fats and Oils
34.5500
0.2300
0.3600
0.3331
0.2500
0.3100
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
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 10/27
Source: WSJ Market Data Group
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
October 30, 2017
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
guide to general levels but don’t always represent actual transactions.
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
Week
ago
52-Week
High
Low
4.25 4.25 4.25 3.50
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
Policy Rates
Euro zone
0.00
0.00
0.00
0.50
0.25
1.50
1.20
1.14
U.S.
1.38
0.15
U.S. government rates
Prime rates
U.S.
Canada
Japan
0.50
0.25
1.50
Overnight repurchase
International rates
Latest
0.50
0.25
1.50
0.50
0.25
1.50
Switzerland
Britain
Australia
—52-WEEK—
High Low
0.00
1.75
1.00
Federal funds
1.1700
1.3125
1.0500
1.1600
1.1700
1.1700
1.3125
1.0500
1.1600
1.1700
1.2000
1.3125
1.1600
1.1700
1.1900
0.40
Nonfinancial
1-month
2-month
3-month
1.14
1.16
1.23
1.14
1.17
1.21
1.14
1.17
1.23
0.40
0.51
0.56
Financial
1-month
2-month
3-month
1.15
1.21
1.28
1.18
1.22
1.28
1.19
1.22
1.28
0.44
0.57
0.66
Discount window primary credit
1.75
1.75
1.00
n.a.
n.a.
Conventional mortgages
n.a.
n.a.
Treasury yields at constant
maturities
1-month
3-month
6-month
1-year
2-year
3-year
5-year
7-year
10-year
20-year
1.00
1.11
1.27
1.43
1.60
1.73
2.04
2.26
2.42
2.71
0.99
1.10
1.25
1.42
1.57
1.70
1.98
2.18
2.33
2.61
1.07
1.13
1.27
1.43
1.60
1.73
2.08
2.37
2.55
2.91
3.00
3.00
2.25
Commercial paper (AA financial)
Commercial paper
1.75
52-Week
high
low
Call money
52-Week
High
Low
1.16
Week
ago
Latest
0.21
0.32
0.48
0.64
0.82
0.98
1.27
1.59
1.81
2.22
Week Ended
Oct 27 Oct 20
52-Week
High
Low
Treasury yields (secondary market)
1-month
3-month
6-month
0.98
1.09
1.25
0.96
1.08
1.23
1.05
1.11
1.25
0.21
0.32
0.48
0.31
0.48
0.55
0.81
0.85
0.29
0.44
0.49
0.74
0.79
0.31
0.49
0.63
0.97
0.97
-0.28
-0.10
0.10
0.50
0.53
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1.00
1.09
1.17
1.25
1.33
1.48
1.65
2.00
1.00
1.09
1.17
1.25
1.33
1.48
1.65
2.00
TIPS
5-year
7-year
10-year
20-year
Long-term avg
Interest rate swaps
1-year
2-year
3-year
4-year
5-year
7-year
10-year
30-year
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1.27
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
State and local bonds
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Eurodollars
1 month
3 month
6 month
Notes on data:
Federal-funds rate is an average for the seven days ended Wednesday, weighted according to rates
on broker trades; Commercial paper rates are discounted offer rates interpolated from sales by
discounted averages of dealer bid rates on nationally traded certificates of deposit; Discount window
primary credit rate is charged for discounts made and advances extended under the Federal
Reserve's primary credit discount window program; rate is average for seven days ended Wednesday;
Inflation-indexed long-term TIPS average is indexed and is based on the unweighted average bid
yields for all TIPS with remaining terms to maturity of 10 years or more; Swap rates are International
Swaps and Derivatives Association (ISDA(R)) mid-market par rates for a fixed-rate payer, who in
return receives three-month Libor, and are based on rates collected at 11:00 a.m. ET by Garban
Intercapital PLC; Source is Reuters; Moody's triple-AAA rates are averages of industrial bonds only;
Muni rates are Thursday quotes based on the Bond Buyer Index for general obligation, 20 years to
maturity, mixed quality debt; Mortgage rates are contract rates on commitments for fixed-rate first
mortgages
Sources: Federal Reserve; for additional information on these rate data and their derivation,
please see, www.federalreserve.gov/releases/h15/data.htm
1.31
0.62
Libor
One month
Three month
Six month
One year
1.24214
1.37678
1.57306
1.84233
1.23788
1.36742
1.56078
1.83511
1.24233
1.38009
1.57306
1.84789
0.53044
0.87567
1.24267
1.55622
-0.401
-0.380
-0.322
-0.233
-0.405
-0.379
-0.315
-0.220
-0.376
-0.321
-0.212
-0.071
-0.405
-0.381
-0.322
-0.233
Euro Libor
One month
Three month
Six month
One year
Euro interbank offered rate (Euribor)
-0.372
-0.331
-0.276
-0.185
One month
Three month
Six month
One year
Latest
-0.373
-0.329
-0.274
-0.183
Value
Traded
-0.366
-0.311
-0.210
-0.069
-0.375
-0.332
-0.276
-0.185
52-Week
High
Low
DTCC GCF Repo Index
Treasury
MBS
Corporate bonds, Moody's seasoned
Aaa
Baa
1.30
1.124
1.147
33.350 1.366 0.244
99.970 1.506 0.257
Open Implied
Settle Change Interest Rate
DTCC GCF Repo Index Futures
Treasury Oct
Treasury Nov
Treasury Dec
98.855 0.005 4427 1.145
98.850 -0.010 7898 1.150
98.710 unch. 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. Federalfunds 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.
14.87
27.29
14.64
27.29
27.29
Cotton (ICE-US)-50,000 lbs.; cents per lb.
Dec
March'18
Chg
Open
interest
68.00
68.00
69.20
68.90
67.95
67.87
Nov
Jan'18
155.00
153.50
159.95
157.90
155.00
153.50
.12 133,467
Nov
Dec
.20
Swiss Franc (CME)-CHF 125,000; $ per CHF
68.64
68.58
.44 109,879
.47 79,916
2,756
156.80
154.65
1.25
.80
366
5,995
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Dec
151-160 152-140
151-110 152-120 1-06.0 738,984
March'18 150-110 151-080
150-090 151-070 1-06.0
3,760
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
124-235 125-015
124-230 125-005
13.5 3,244,447
March'18 124-130 124-230
124-125 124-215
14.0 17,701
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
117-030 117-087
117-027 117-082
7.2 3,081,117
March'18 116-280 117-005
116-280 117-007
7.7 22,481
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec
107-220 107-232
107-217 107-230
1.2 1,654,914
March'18 107-172 107-177
107-172 107-177
1.7
6,407
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Oct
98.848
98.848
98.845
98.845
… 231,638
Jan'18
98.630
98.635
98.630
98.635
.005 344,279
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Dec
100.625 100.953
100.578 100.906
.500 28,804
1 Month Libor (CME)-$3,000,000; pts of 100%
Nov
...
...
... 98.7500
…
928
Eurodollar (CME)-$1,000,000; pts of 100%
Nov
98.5850 98.5925
98.5850 98.5900 .0075 99,412
Dec
98.4900 98.4950
98.4850 98.4900 .0050 1,745,824
March'18 98.3500 98.3650
98.3500 98.3600 .0100 1,282,028
Dec
98.0600 98.0900
98.0600 98.0850 .0300 1,583,656
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
.8799
.8815
.8852
.8867
.8791
.8803
.8842
.8855
.0049
2,977
.0048 267,293
.7792
.7794
.0009
1,293
.0009 157,440
Canadian Dollar (CME)-CAD 100,000; $ per CAD
Nov
Dec
.7797
.7802
.7801
.7808
.7777
.7778
British Pound (CME)-£62,500; $ per £
Dec
March'18
1.3144
1.3150
1.3216
1.3234
Settle
27.29
Interest Rate Futures
Nov
Dec
Contract
High hilo
Low
Open
14.79
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
1.0055
1.0120
1.3143
1.3140
1.0092
1.0157
1.0034
1.0105
Chg
Open
interest
1.3207
1.3219
.0078
1,004
.0078 181,507
1.0081
1.0149
.0036
.0036
70,752
161
Australian Dollar (CME)-AUD 100,000; $ per AUD
.7666
.7669
.7680
.7659
.7664
.7648
Nov
Dec
Jan'18
Feb
March
June
.7683
.7687
.7680
.7664
.7675
.7648
.7662
.7651
.7658
.7621
.7650
.7648
t
.7682
.7679
.7678
.7676
.7674
.7670
.0017
1,156
.0017 128,588
.0017
456
.0017
450
.0017
767
.0017
244
Mexican Peso (CME)-MXN 500,000; $ per MXN
Dec
.05177
.05199
March'18 .05073 .05120
Euro (CME)-€125,000; $ per €
1.1613
1.1666
Nov
Dec
1.1633
1.1689
.05136
.05062
.05147 –.00027 175,511
.05070 –.00026
623
1.1610
1.1624
1.1648
1.1669
.0040
5,415
.0040 424,738
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
Dec
March'18
23361
23349
23386
23371
23274
23267
23291
23279
S&P 500 Index (CME)-$250 x index
Dec
2575.00
2577.00
2565.70
Mini S&P 500 (CME)-$50 x index
–81 157,515
–84
1,631
2568.30 –10.10
2575.50 2578.25
2565.50 2568.25
Dec
March'18 2576.25 2578.00
2566.00 2568.50
Mini S&P Midcap 400 (CME)-$100 x index
1837.00 1838.80
1820.20 1824.80
Dec
Mini Nasdaq 100 (CME)-$20 x index
6209.5
6251.5 s
6202.3
6224.3
Dec
March'18 6223.3 6263.8 s
6216.0
6237.5
Mini Russell 2000 (ICE-US)-$100 x index
1507.50 1509.00
1483.40 1492.90
Dec
March'18 1494.00 1494.00
1492.10 1493.90
Mini Russell 1000 (ICE-US)-$100 x index
1425.20 1428.20
1423.10 1423.10
Dec
U.S. Dollar Index (ICE-US)-$1,000 x index
94.77
94.84
94.33
94.45
Dec
March'18
94.43
94.51
94.07
94.17
58,917
–10.25 3,135,063
–10.00 63,493
–12.80
92,788
9.0 284,553
9.5
1,611
–15.60
–15.60
65,746
63
–5.10
201
–.37
–.35
51,058
2,150
Source: SIX Financial Information
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
3.2
1939.99
U.S. Corporate
2624.61
3847.03
9.4 Long term
4.2 Double-A-rated
6.3
718.58
2.3
Mortgage-Backed
1.8
Ginnie Mae (GNMA) 2.870 2.160 3.090
3.140 2.950 3.520
1164.71
2.5
Fannie mae (FNMA) 2.930 2.300 3.120
2.680 2.360 3.010
1793.72
2.6
Freddie Mac (FHLMC) 2.940 2.310 3.130
4.140 4.110 4.710
521.19
4.5 Muni Master
1.968 1.677 2.516
2.610 2.290 2.870
364.62
5.0 7-12 year
1.991 1.674 2.618
3.430 3.320 3.870
Triple-B-rated
High Yield Bonds Merrill Lynch
7.4
417.42
8.7
417.98
Yield (%)
Latest Low High
Index
1954.06
2.610 2.100 2.790
U.S. Aggregate
4.0 Intermediate
567.86
YTD total
return (%)
1986.28
U.S. Corporate Indexes Bloomberg Barclays
5.7
Total
return
close
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
High Yield Constrained 5.464 5.373 6.858
10.338 9.584 13.189
Triple-C-rated
2.910 2.270 3.120
408.62
5.9
12-22 year
2.405 2.114 3.047
393.58
6.1
22-plus year
2.917 2.592 3.622
Global Government J.P. Morgan†
543.06
1.1
Global Government 1.440 1.080 1.560
Canada
2.030 1.390 2.190
2865.59
6.8
High Yield 100
5.193 4.948 6.448
755.50
0.3
379.24
7.7
Global High Yield Constrained 4.978 4.934 6.450
371.92
0.8
EMU§
1.061 0.826 1.363
307.30
7.1
Europe High Yield Constrained 2.013 2.013 3.814
711.90
0.8
France
0.820 0.540 1.210
U.S Agency Bloomberg Barclays
509.93
-0.9
Germany
0.430 0.170 0.620
1639.48
2.1
U.S Agency
1.960 1.330 2.010
287.40
-0.3
Japan
0.430 0.170 0.460
1466.89
1.4
10-20 years
1.800 1.140 1.840
562.51
-0.7
Netherlands
0.570 0.290 0.760
3349.07
7.1
20-plus years
2.960 2.670 3.460
914.54
U.K.
1.640 1.340 1.790
2.800 2.470 3.090
805.43
4.8 Yankee
2456.30
0.1
9.0 Emerging Markets ** 5.450 5.279 6.290
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
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
0.050
2.750
1.450
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
1.596
2.412
1.483
2.333
0.857
1.849
1.859 t
2.741 t
l
1.887
1.965
1.692
29.2
29.1
l
2.785
2.847
2.386
36.9
37.3
53.7
France 2 -0.602 t
10 0.635 t
l
-0.602
-0.482
-219.7
-143.4
l
0.663
0.748
-174.9
-138.1
Germany 2 -0.752 s
10 0.368 t
l
-0.763
-0.686
l
0.386
0.466
Italy 2 -0.210 t
10 1.842 t
l
-0.192
-0.123
0.010
l
1.944
2.116
1.581
Japan 2 -0.158 t
10 0.069 s
l
-0.153
-0.115
-0.237
l
0.069
0.065
Spain 2 -0.371 t
10 1.491 t
l
-0.338
-0.323
l
1.583
1.607
1.227
0.454 t
1.337 t
l
0.462
0.456
0.286
l
1.352
1.362
1.157
10
0.500
Year ago
l
Australia 2
0.000
Month ago
l
2.750
0.000
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
U.S. 2 1.568 t
10 2.372 t
2.750
0.100
Other short-term rates
90 days
March
2.050
3.491 3.483 3.865 3.031
3.519 3.507 3.899 3.063
30 days
60 days
14.70
Settle
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
0.100
3.00
Federal funds (effective)
1.16
Secondary market
0.3500
0.5625
0.2400
0.3000
0.3200
Data are annualized on a 360-day basis. Treasury yields are per annum,
on actively traded noninflation and inflation-indexed issues that are
adjusted to constant maturities. Data are from weekly Federal Reserve
release H.15.
1.16
1.005 0.995 1.300 0.240
1.130 1.105 1.180 0.350
1.260 1.245 1.260 0.500
4 weeks
13 weeks
26 weeks
May
2.750
Treasury bill auction
30-year mortgage yields
1.75
1.75
Key Interest Rates
Week Ended
Oct 27 Oct 20
—52-WEEK—
High Low
Fannie Mae
Discount
Effective rate
High
Low
Bid
Offer
Week
Latest ago
Contract
High hilo
Low
Open
2781.78
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
WSJ.com/commodities
1.750
U.K. 2
4.250
10
-0.577 -217.0
0.468
-173.8
-0.616 -232.0
0.168 -200.4
83.5
-235.9
-147.2
-202.7
-168.1
-177.8
-178.8
-84.7
-53.0
-46.8
-26.7
-172.5
-174.9
-109.3
-0.046 -230.3
-234.4
-189.5
-0.147
-193.8
-193.4
-100.3
-88.1
-82.9
-62.2
-111.4
-113.4
-57.0
-103.6
-106.0
-69.2
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Investment-grade spreads that tightened the most…
Maturity
Current
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
Issuer
Symbol Coupon (%)
Citigroup
JPMorgan Chase
Morgan Stanley
Microsoft
C
JPM
MS
MSFT
5.875 March 27, ’49
7.900 April 30, ’49
5.450 July 15, ’49
1.850 Feb. 12, ’20
81
–96
28
4
–28
–23
–14
–11
82
–88
38
n.a.
73.78
101.41
50.46
83.89
–0.12
–0.35
–0.88
0.10
HollyFrontier
Comcast
E.I. du Pont de Nemours And Co
Royal Bank of Scotland
HFC
CMCSA
DD
RBS
5.875
April 1, ’26
5.150 March 1, ’20
2.800 Feb. 15, ’23
8.625 Aug. 15, ’49
184
15
60
184
–10
–7
–7
–7
n.a.
25
n.a.
196
36.91
36.50
...
7.58
1.76
–0.79
...
0.66
–98
371
n.a.
240
27.60
…
...
…
–0.72
…
...
…
14
12
11
10
n.a.
152
100
195
78.73
106.00
171.23
98.49
–0.22
7.06
–1.09
–0.30
Bond Price as % of face value
Current
One-day change
Last week
…And spreads that widened the most
Bank of America
Macy's Retail Holdings
Bnp Paribas S.A.
Charter Communications Operating
BAC
M
BNP
CHTR
8.000
7.000
2.950
6.484
Jan. 30, ’49
Feb. 15, ’28
May 23, ’22
Oct. 23, ’45
–61
390
72
254
Royal Bank of Canada
Lyondellbasell Industries NV*
Aetna
Time Warner
RY
LYB
AET
TWX
2.150 March 6, ’20
4.625 Feb. 26, ’55
4.750 March 15, ’44
6.250 March 29, ’41
44
155
134
197
33
21
20
15
High-yield issues with the biggest price increases…
Issuer
Symbol
CalAtlantic
Riverbed Technology
California Resources
Rite Aid
CAA
RVBD
CRC
RAD
DISH DBS
Dynegy
Freeport–McMoran
Intelsat Connect Finance S.A.
DISH
DYN
FCX
INTEL
Coupon (%)
Maturity
5.000 June 15, ’27
8.875 March 1, ’23
6.000 Nov. 15, ’24
7.700 Feb. 15, ’27
7.750
8.125
5.400
12.500
July 1, ’26
Jan. 30, ’26
Nov. 14, ’34
April 1, ’22
Stock Performance
Close ($)
% chg
105.000
90.250
46.375
85.875
2.88
2.00
1.88
1.88
102.125
n.a.
n.a.
85.000
49.07
...
10.45
1.61
21.31
...
3.47
2.55
110.500
110.750
99.750
95.500
1.75
1.75
1.75
1.75
111.750
105.063
97.750
n.a.
…
11.85
13.94
...
…
5.61
–1.34
...
111.500
n.a.
92.500
97.500
…
2.87
18.40
5.85
…
–8.01
5.26
–3.31
101.750
82.375
103.000
99.625
9.69
...
31.33
…
–1.62
...
–5.77
…
…And with the biggest price decreases
Sprint Capital
JC Penney
CenturyLink
Kindred Healthcare
S
JCP
CTL
KND
6.875 Nov. 15, ’28
5.650
June 1, ’20
7.650 March 15, ’42
8.750 Jan. 15, ’23
106.750 –3.75
–2.75
88.750
–1.09
90.719
–1.03
97.875
Dean Foods
PetSmart
Acadia Healthcare
CommScope Technologies
DF
PETM
ACHC
COMM
6.500 March 15, ’23
8.875
June 1, ’25
5.125
July 1, ’22
5.000 March 15, ’27
100.875
79.625
102.000
98.000
–0.88
–0.88
–0.75
–0.75
*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
B10 | Tuesday, October 31, 2017
THE WALL STREET JOURNAL.
BANKING & FINANCE
HNA Unit Pays Up in Bond Sale
Investors give offering
a lukewarm response,
reflecting worry about
Chinese firm’s risk
BY ANJANI TRIVEDI
Continued from page B1
investors, bond yields also
jumped, with the 10-year
reaching almost 16% in 1981,
and far from falling, there
was a bubble in the price of
gold.
Gold was at $304 on the
day Mr. Volcker was nominated and fell to $282 as investors bet on his hawkishness. Just five months later
gold had nearly tripled to
$835, the dollar was weaker
and the early Volcker trade
was dead and buried.
Mr. Volcker’s appointment
was a case of investors getting the policy positioning of
the new chairman right, but
their bets on what that meant
for asset prices wrong, at
least over the next few years.
Alan Greenspan’s selection
was a quite different matter.
Conservatives welcomed his
appointment in 1987, thinking
A unit of HNA’s airline operator Hainan Airlines Holding sold $300 million in dollar debt priced to yield 6.35%, above a previous issue.
U.S.-dollar debt that matures
in a little less than a year, according to Dealogic, dwarfing
past issuance. The shorter
term allows them to circumvent onshore regulations requiring debt be registered and
approved before issuance.
Debt bankers say that borrowers needing cash more quickly
have increasingly taken advantage of this loophole.
HNA Group has a significant amount of debt coming
due over the next two years,
according to Thomson Reuters
Eikon: about $640 million over
the next two months, $2.2 billion next year and $4.5 billion
in 2019.
The company’s borrowing
costs have risen and some
lenders have become less willing in recent months, tightening HNA’s cash situation, according to a person familiar
with the matter.
HNA’s subsidiaries and associates have tapped U.S.-dol-
lar and domestic capital markets for at least $5 billion of
debt this year, according to
Dealogic, topping last year’s
$4.9 billion.
Credit analysts say the
he shared the hawkish inflation-fighting mind-set of Mr.
Volcker, his predecessor. The
main point of difference was
Mr. Greenspan’s willingness
to support financial deregulation—something now espoused by Mr. Powell.
Mr. Greenspan does seem
to have started out hawkish,
raising new concerns about
inflation at his first Fed policy meeting, according to the
transcript. But his hawkish
credentials lasted just two
months, until the Black Monday stock market crash of October 1987. The new Fed
chairman said the central
bank stood ready to “serve as
a source of liquidity”—thus
ushering in the infamous
“Greenspan put,” the idea
that the Fed would step in to
support markets in a crisis.
A repeat after the Russian
default and Wall Street chaos
of 1998 helped fuel the final
stages of the dot-com bubble,
and many believe that Mr.
Greenspan pushed up rates
taxes, depreciation and amortization—at 8.1 times, “relatively high” among Chinese
high-yield borrowers.
HNA has announced around
$30 billion in overseas acquisitions since 2016, buying up
businesses and stakes in companies including Deutsche
Bank AG and the Hilton chain
of hotels. The pace has slowed
sharply since HNA’s buying
spree and debt levels drew
scrutiny from Chinese financial regulators several months
ago.
Analysts say the group’s
short-term liabilities, which
stood at $24 billion at the end
of June, are a mounting burden. At the end of June, HNA
reported a cash balance of $28
billion. Roughly one-quarter
has been pledged to banks as
collateral for credit lines that
aided some acquisitions over
the past few years.
—Manju Dalal
contributed to this article.
group’s leverage remains
high. In a note to clients in
September, Goldman Sachs
analysts estimated HNA’s ratio of total debt to Ebitda—
earnings before interest,
too slowly and too predictably during the 2000s, contributing to the excessive
risk-taking that ended in the
2008 crisis.
O
ne prominent critic of
the Fed’s precrisis policies is Mr. Taylor,
whose “Taylor rule” suggested rates should be higher
during the 2000s. The market
backed up his view: Gold
prices began to rise and the
dollar fall from 2002, when
the Fed set rates well below
what the Taylor rule suggested for the first time since
the 1970s.
Investors might have been
wrong about Mr. Greenspan’s
commitment to tight money,
let alone his devotion to the
views of right-wing novelist
Ayn Rand, but they were right
about his support for financial deregulation.
Democratic and Republican
presidents stripped the financial sector of the burden of
rules introduced in the Great
ANDREW HARNIK/ASSOCIATED PRESS
STREET
BY MARGOT PATRICK
AND JOANNE CHIU
QILAI SHEN/BLOOMBERG NEWS
A bond sale by a unit of
China’s HNA Group Co. met
with tepid demand last week,
with investors demanding
higher interest as concerns
grow about the conglomerate’s
debt levels and liquidity.
Hainan Airlines (Hong
Kong) Co., a unit of Shanghailisted Hainan Airlines Holding, sold $300 million in U.S.dollar debt that matures in
364 days. That the term is less
than a year allowed the company to proceed without regulatory approval.
Many
emerging-market
U.S.-dollar bonds in recent
months have drawn demand
several times the size of the
issue, compared with just
$500 million in investor orders for Hainan Airlines, according to market participants.
The new bonds were priced
to yield 6.35%, significantly
above the 5.5% the company
paid on a similar issue in
June—a sign that buyers,
which included Chinese hedge
funds, feel that risk has
grown. On Monday, the yield
on another short-term Hainan
Airlines bond maturing in
2018 jumped to 5.9% as its
price fell.
The company’s parent is
one of the hundreds of subsidiaries owned or controlled by
HNA Group. Hainan Airlines,
which has sold $1 billion in
bonds this year, plans to use
the proceeds from the latest
issue to repay maturing debt.
The deal was arranged by two
Chinese brokerages, Guotai
Junan Securities and Yue Xiu
Securities, and the bonds
weren’t rated by major creditrating firms.
Representatives for HNA
and Hainan Airlines had no
immediate comment.
Chinese companies in 2017
have sold around $4 billion in
Fed governor Jerome Powell
Depression, working wonders
on the sector’s share prices—
at least for a while. By the
time Mr. Greenspan left office
in 2006 the U.S. financial sector was up 653% since he
took over in 1987, gaining
more than double the 319% of
nonfinancial stocks, according
to Thomson Reuters
Datastream.
Deregulation and easy
money had sown the seeds of
a crisis few foresaw, and Mr.
Greenspan declared himself in
“a state of shocked disbelief”
after the banking system imploded in 2008.
We can say two things
about Mr. Powell, assuming
he is appointed: He will be
friendlier to Wall Street than
Ms. Yellen, and he will take a
similarly dovish approach to
monetary policy.
In the short run, less red
tape will support bank stocks,
but banks surely won’t return
to their wild precrisis leverage soon. Equally, a continuation of Ms. Yellen’s cautious
approach to rate increases
will avoid shocking the market, while leaving unchecked
the danger that a bubble develops in the stock market.
Given investors’ dire history of predicting how Fed
chairmen will use their
power, the wisest approach
may be to wait and see how
he turns out.
Regulatory Push Boosts China’s Big Banks
BEIJING—China’s campaign
to lower debt levels boosted
third-quarter results of the big
state-owned banks, building
on a trend that has widened
their advantage over smaller
lenders.
To reduce risks in the financial sector, Chinese regulators this year have made it
more expensive for banks to
borrow from each other. That
has benefited the big state
banks, which use their vast retail deposit franchises to lend
to other lenders, while the
smaller banks have struggled
with the higher funding costs.
Industrial & Commercial
Bank of China Ltd. said Monday its net profit rose 3.4%
from a year earlier to 75 billion yuan ($11.3 billion) in the
third quarter, picking up pace
from its 1.85% profit growth in
the first half. In the past two
years, the world’s largest bank
by assets reported near-flat
net profit as a rapid buildup of
bad loans consumed much of
its earnings and narrowing interest income ate into its profitability.
Also on Monday, Agricultural Bank of China Ltd., the
HSBC
Reports
Profit on
Asia Gain
Good Loans Rising
Profits at China's big banks have benefited this year from a
crackdown on borrowing.
Change in profit
2017
2016
7.9%
Bank of China
–3.7
3.8
China Construction Bank
1.4
3.8
Agricultural Bank of China
1.9
2.3
Industrial & Commercial
Bank of China
*Through September
Source: the companies
No. 3 Chinese lender, reported
net profit climbed 4.9% in the
quarter, the fastest pace in the
past two years. That mirrored
the net profit rise that China
Construction Bank, China’s
second-biggest lender by assets, posted Friday, citing
higher interest and fee income.
The only exception of the
0.4
THE WALL STREET JOURNAL.
Big Four was Bank of China
Ltd., which reported an only
0.1% rise in profit, as it used
much of its profit to lift its
bad-loan provision by 63%
from the year-earlier quarter.
“The Big Four banks are faring well as liquidity tightens
and funding costs rise given
their vast deposit bases,” said
Yulia Wan, a bank analyst with
Moody’s Investors Service.
“But the banks with bigger reliance on the interbank market
are under higher pressure in
net interest margin.”
In recent years, small Chinese banks have expanded aggressively with the help of interbank borrowing, outpacing
their bigger rivals in terms of
profit growth. An onslaught of
regulatory measures has
changed that, making it harder
for them to borrow, which has
slowed their expansion.
China Citic Bank, a midsize
lender based in Beijing, reported a drop in both assets—
such as loans and investments—and liabilities, chiefly
deposits, as it was forced to
scale back its interbank borrowing. Other small banks, including Ping An Bank, Shanghai Pudong Development Bank
Co. Ltd. and Industrial Bank
Co. Ltd. also reported slower
growth in assets.
Interest margins across
China’s banking industry had
narrowed following a series of
reductions in the benchmark
interest rates to stimulate economic growth in 2014 and 2015.
The liberalization of deposit
rates in the past few years also
forced banks into fiercer competition for depositors.
Higher market rates helped
stabilize big lenders’ net interest margins—the difference
between interests received
and paid by banks and a key
measurement of Chinese lenders’ profitability. Three of the
big four banks reported wider
net interest margins in the
third quarter; Agricultural
Bank didn’t disclose the margin. Small banks’ margins generally narrowed.
Also a boon to China’s
banks, both big and small, was
the Chinese economy’s betterthan-expected performance
this year, which helped the
balance sheets at companies,
especially heavily indebted industrial ones, and made them
better able to service their
loans. All Big Four banks reported lower bad-loan ratios
compared with the end of last
year.
China’s top banking regulator said on the sidelines of the
Communist Party congress
this month that regulation
would tighten further.
—Grace Zhu
HSBC Holdings PLC swung
to a third-quarter net profit
and said increased investment
in its Asia business was paying
off, with revenue there rising.
The U.K. banking company
on Monday posted a $3.24 billion net profit for the period
versus a net loss of $204 million in the comparable quarter
of 2016, as revenue rose 36%
to $12.98 billion. On a pretax
basis, profit surged to $4.62
billion from $843 million.
Executives said there was
strong growth in lending in
Hong Kong and mainland
China, including in the Pearl
River Delta area where the
bank has been staking out turf.
Finance head Iain Mackay said
loans and deposits there had
grown to over $1 billion from
“a very small base.”
He said HSBC’s new securities venture in China, underwriting stocks and bonds and
advising on mergers, would
contribute to its growing
mainland business, albeit
slowly and over time. The securities venture, which is the
first majority-owned by a foreign bank, got the go-ahead
from authorities in June.
HSBC Chief Executive Stuart Gulliver said the bank’s international network continued
to deliver strong growth in the
quarter, and its pivot to Asia
was driving higher returns and
lending growth, particularly in
Hong Kong.
Asia loans and advances
rose 17% for the three months
to Sept. 30, compared with the
third quarter of 2016. Asia
customer deposits were $10.1
billion higher than at June 30.
Executives said there
was strong lending
growth in Hong Kong
and mainland China.
Across the bank, revenue on
retail deposits rose to $1.61
billion, from $1.3 billion in the
third quarter of 2016.
The third-quarter results
come after HSBC said in late
July that net profit rose 57%
to $3.87 billion in the second
quarter, amid improving loan
growth and rising contribution
from its other businesses. The
profit growth has helped the
bank accrue surplus capital,
and it has been returning
some of it to shareholders by
buying back shares.
In an interview, Mr. Mackay
said the bank still had $10 billion of extra capital tied up in
its subsidiaries, including $6
billion in the U.S. He said further buybacks would be considered, “when the time is appropriate.” Local regulators
must approve capital moving
up to the group level.
HSBC was founded in Hong
Kong in 1865 and has its headquarters in London. It considers Hong Kong and the U.K. to
be its two home markets.
Mr. Gulliver heralded a
“pivot to Asia” in June 2015 as
a finishing touch to the bank’s
overhaul after the financial
crisis. During his time as CEO,
starting in 2011, HSBC exited
dozens of businesses and
withdrew from parts of the
globe. Mr. Gulliver said at the
time that HSBC would aim to
repeat its historic growth in
Hong Kong in China’s emerging urban centers.
On Monday, Mr. Gulliver
said HSBC had hit most of the
targets he set out in 2015 and
that he aimed to have them all
done when he retires from the
bank on Feb. 20, 2018.
Mr. Gulliver announced his
resignation this year. A new
chairman, Mark Tucker, started
in October and named retail
head John Flint as Mr. Gulliver’s successor.
One of the tasks set by Mr.
Gulliver was to significantly
improve HSBC’s processes and
controls around preventing financial crime. Raising its standards is a key condition of a
five-year deferred prosecution
agreement the bank entered in
2012 with the U.S. Justice Department, while paying $1.9
billion in a settlement over
money-laundering allegations.
For personal non-commercial use only. Do not edit or alter. Reproductions not permitted.
To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com
THE WALL STREET JOURNAL.
Tuesday, October 31, 2017 | B11
* * * *
HEARD ON THE STREET
Email: heard@wsj.com
Banks’ Fortunes Diverge on Fed
When the Federal Reserve
began raising interest rates,
every bank was a winner. As
the Fed prepares for its fifth
rate boost in the current
tightening cycle, some banks
are benefiting more than
others.
When rates start to rise,
banks are typically in no
rush to lift their deposit
rates. After several increases, banks have to pay
out more to depositors or
risk seeing them leave in
search of higher yields.
We have hit that point
now, but it is playing out in
a surprising way, according
to analysts at Keefe,
Bruyette & Woods. So far
this year, the average cost of
interest-bearing deposits at
big banks such as Bank of
America and J.P. Morgan
Chase has gone up by 0.18
percentage point, compared
with a 0.10 increase at large
regional lenders like SunTrust Banks, KBW calculates.
The so-called deposit
beta, which measures how
much banks raise their rates
as a percentage of the Fed
rate increase, reached 34%
WSJ.com/Heard
FINANCIAL ANALYSIS & COMMENTARY
Size Disadvantage
Amount that deposit rates rise, as percentage of
Federal Reserve rate increase
30%
Universal banks
3Q ’17: 34%
20
Small and
medium-sized
banks
20%
10
Large
regional banks
18%
0
1Q 2017
2Q
3Q
Source: Keefe, Bruyette & Woods
for universal banks in the
third quarter, up from 16% in
the first quarter. But large
regional lenders and small
banks have seen a more gentle response, with deposit
betas hitting 18% and 20%,
respectively, in the third
quarter.
Ordinarily giants like Bank
of America are slower to lift
rates, thanks to their strong
brands and market positions.
The difference this time is
these banks have been pushing to serve wealthier clients
THE WALL STREET JOURNAL.
who are more likely to move
money around in search of
higher yields.
KBW analyst Christopher
McGratty says he expects
smaller banks to catch up as
awareness spreads among
depositors that they can
earn more. Smaller banks
also are growing more
quickly and have higher
loan-to-deposit ratios, so
their need for funding is
greater.
In a rising-rate environment, differences in business
Nintendo
Powers Up
Its Results
OVERHEARD
models, regardless of size,
become more important.
Banks that focus on commercial and industrial loans tend
to have more reliable deposit
bases than banks that specialize in commercial real-estate lending, Mr. McGratty
says.
New York Community
Bank, for instance, which
specializes in multifamily
real-estate lending, had a deposit beta of 36% in the
third quarter, according to
KBW, showing that it is paying up for deposits. Large regional C&I lender Comerica,
by contrast, had a deposit
beta of just 14%. Real-estate
loans tend to be fixed-rate,
while commercial and industrial loans have floating
rates, making them more attractive when rates are rising. This helps explain why
New York Community Bank
shares are down 20% so far
this year, while Comercia
shares have risen 16%.
Bank-deposit costs may
get more in sync as rates
keep going higher, but for
now investors need to focus
on the differences.
—Aaron Back
Health experts and
consumers with good taste
agree: Avoid a scary diet this
Halloween.
The Food and Drug
Administration issued a very
specific warning Monday:
Don’t overdose on black
licorice.
FDA experts say that the
candy contains glycyrrhizin,
which comes from the licorice
root and can cause potassium
levels in the human body to
fall.
As such, “eating 2 ounces
of black licorice a day for at
least two weeks could land
you in the hospital with an
irregular heart rhythm” for
patients aged 40 or older.
The FDA advises people
who have been gorging on
black licorice and have an
irregular heart rhythm or
muscle weakness to stop
eating, which seems obvious,
and call a doctor.
As anyone who has tried
it knows, black licorice is far
different from red licorice,
which usually has no licorice
in it, and therefore is merely
as unhealthy as any other
candy.
Americans Don’t Save Enough, but Fixing That May Hurt
Setting something aside
for a rainy day hasn’t exactly
been a hallmark of American
consumers, but recent trends
bear watching.
The personal savings rate
fell to 3.1% in September, the
lowest since December 2007,
the final month of the last
economic expansion, when it
touched 3%. That also was
the average savings rate during 2005 and 2006, the peak
years of the housing boom.
With so many other bits
of economic data reaching or
surpassing their prerecession peak, an optimist might
shrug and add this to the
list. But sustaining such a
low level of savings for any
Good Times
U.S. personal savings rate
10%
8
6
4
2
0
1997
2000
2010
Source: Federal Reserve Bank of St. Louis
length of time would be unusual, even at a time like today when stock prices are at
a record and consumer confidence recently hit its highest level in over a decade.
Consumers tend to spend
money when they feel that
their services are in demand
or that their wages are rising. They really go into overdrive when asset prices are
high. At least two out of
three conditions have been
met with unemployment so
low and markets booming.
Comparisons with the
housing boom are tricky,
though. Back then, consumers not only felt wealthy but
were able to withdraw actual
dollars from their appreciating homes. Equity extraction
at the peak of the housing
boom at one point rose
above 10% of disposable income, with that ratio having
doubled in six years.
While home prices have
risen, they aren’t exactly
frothy nationwide and homeownership hit a multidecade
low in 2016. A more apt
comparison for today’s disdain for saving is the late
1990s when rising stock
prices made Americans feel
wealthy. Yet the personal
savings rate averaged 4.3%
during 1999 and 2000 and it
was 5.7% in December 1996
when Federal Reserve Chairman Alan Greenspan mused
about “irrational exuberance.”
Some increase in the savings rate would be normal
and expected, but how it
happens is important for investors. Real disposable personal income could start rising at a faster clip—something that would encourage
the Federal Reserve to keep
tightening monetary policy.
Alternatively, consumers
could lose confidence and retrench. The latter wouldn’t
necessarily require an economic scare as consumer
debt service as a share of
disposable income already is
at its highest level since the
first quarter of the economic
expansion back in 2009.
Rainy days really do tend
to come when people haven’t
prepared for them.
—Spencer Jakab
Nintendo has switched on
the growth engine. Now it
has to keep it running.
The Japanese games giant
reported blowout results for
the quarter ended Sept. 30.
Revenue nearly tripled from
a year ago, beating analysts’
estimates soundly.
Driving the beat was
Switch, its new game console: Nintendo has already
sold 7.6 million units since
its launch in March. It now
expects to sell 14 million in
the year ending March 31, up
from its previous forecast of
10 million. Nintendo also
raised operating-profit guidance for this fiscal year by
85%.
That indicates Nintendo is
confident a supply bottleneck will be alleviated ahead
of the holiday season. The
company has struggled to
make enough Switch consoles to meet demand as it
battles for parts with the
likes of Apple.
Gaining users is important
because game developers
will likely stick only with
systems that have a big base.
On that front, Nintendo is
making good progress.
Nintendo still needs to improve its network service,
which has become a sustainable source of revenue for
competitors.
Subscription-based online
services lets players download games and extra items,
as well as to play against
one another.
Sony now makes more
than half of its games revenue from such services. Nintendo also could squeeze
more profits from franchises
like Super Mario by making
them more available on mobile phones.
With its stock up 75% this
year, Nintendo needs to keep
playing the game well.
—Jacky Wong
MARKETS
Downgrades Deflate Retailer, Health-Care Stocks
Shares of retailers and
health-care companies slipped
following a slew of analysts’
stock downgrades.
The declines weighed on
major
U.S.
MONDAY’S
stock indexes
MARKETS
at the start of a
busy week that
was set to include another round of earnings results, the monthly U.S.
jobs report and policy decisions from central banks
around the world.
The Dow Jones Industrial
Average lost 85.45 points, or
0.4%, to 23348.74. The S&P
500 fell 8.24 points, or 0.3%,
to 2572.83 and the Nasdaq
Composite inched down 2.3
points, or less than 0.1%, to
6698.96.
Shares of retailers, which
have come under pressure this
year as foot traffic has declined at many brick-and-mortar stores, took a fresh hit
Monday.
J.C. Penney slid 25 cents,
or 8%, to $2.87 and Macy’s
lost 85 cents, or 4.3%, to 18.84
after
Citigroup
analysts
changed their rating for both
stocks to “sell” from “neutral.”
Nordstrom and Kohl’s each
lost more than 2%.
Declines in health-care
stocks also pulled major stock
indexes lower.
Merck & Co. fell 3.53, or
6.1%, to 54.71 after Morgan
Stanley and Barclays, among
other firms, cut their ratings
for the drugmaker’s stock. The
day’s moves extended losses
from Friday, when the company posted a third-quarter
loss and said the lost sales and
costs of responding to a June
cyberattack would likely weigh
on fourth-quarter results, too.
Meanwhile,
government
bonds rose, sending the yield
on the benchmark 10-year U.S.
Treasury note to 2.374% from
2.426% Friday. Yields fall as
bond prices rise.
Bond yields have swung in
recent weeks as investors have
Retail Pain Deepens
Shares of some department stores slid
as U.S. stocks fell broadly Monday.
0%
–2
S&P 500
Macy’s
▼0.3% since ▼4.3%
previous close
J.C. Penney
▼8.0%
noon
3
–4
ALAN DIAZ/ASSOCIATED PRESS
BY AKANE OTANI AND RIVA GOLD
–6
–8
–10
9:30
10
11
Macy’s shares fell 4.3%.
Source: FactSet
watched for signs of progress
on a Republican tax plan, as
well as hints around whom
President Donald Trump will
nominate to be the next chairman of the Federal Reserve.
“What investors are trying
to figure out is how much the
tax-reform plan is already
baked into the market,” said
Dave Donabedian, chief investment officer at CIBC Atlantic
Trust.
Failure by the Republicans
to pass a tax plan could pressure stocks in the short term,
Mr. Donabedian said, although
steady economic growth
1
2
4
THE WALL STREET JOURNAL.
should continue to support
gains over the longer term.
“We’ve had a great mix of economic growth and low inflation, and the fact that it’s happening outside of the U.S. as
well is supportive,” he said.
Elsewhere, Spain’s IBEX 35
index jumped 2.4%, recovering
from losses Friday, as investors reassessed the political
climate in the country.
Spanish Prime Minister
Mariano Rajoy set new elections in Catalonia for Dec. 21
and moved to impose direct
rule after separatist lawmakers in Catalonia’s parliament
voted in favor of independence, in breach of Spain’s
constitution.
“This is not going to end in
an independent state and the
short period of time before regional elections should help
offset any knock to confidence
that may slow growth,” said
Andrew Mulliner, portfolio
manager at Janus Henderson
Investors.
The Stoxx Europe 600
edged up 0.1% as gains in
Spanish companies helped offset postearnings declines in
index heavyweight HSBC Holdings.
Early Tuesday, Japan’s Nikkei Stock Average was down
0.5%, while Hong Kong’s Hang
Seng Index was down 0.4%.
Bonds Gain After Indictments Party’s Over; Chinese Assets Slide
BY DANIEL KRUGER
U.S. government bonds
gained after Special Counsel
Robert Mueller issued his first
indictments in a probe into
Russian meddling in the 2016
election.
CREDIT
The yield on
MARKETS the benchmark
10-year
U.S.
Treasury note
fell to 2.374% from 2.426%
Friday, its biggest one-day decline since Sept. 5, when Hurricane Irma made landfall in
Florida. Bond yields fall as
prices rise.
Government bonds rose as
Paul Manafort, former chairman of President Donald
Trump’s 2016 campaign, was
taken into custody on Monday
on charges that he laundered
more than $18 million in funds
from his work for a pro-Russia
party in Ukraine through offshore accounts.
Mr. Manafort pleaded not
guilty in court. A spokesman
has said Mr. Manafort didn’t
collude with the Russian government to help Moscow interfere in the 2016 election.
Some investors said the
charges may divert Mr.
Trump’s attention from his
legislative priorities, most
prominently the push to revamp the tax code by reducing
rates for corporations and
many individuals.
Bond yields rose last week
after Congress passed a budget resolution that paved the
way for tax cuts, which many
investors say could boost
economic growth and reduce
demand for government
bonds.
“It can’t be good,” said David Coard, head of fixed income at Williams Capital
Group. “There’s going to be
speculation on how this impacts the legislative and executive agenda in Washington.”
The extent of the rally may
be mitigated by expectations
that events this week could
have a significant impact on
investors’ views about the direction of the economy and
Federal Reserve policy, some
analysts said.
Mr. Trump is expected to
announce his pick to head the
central bank this week, while
the Labor Department is
scheduled to release employment data on Friday.
AUCTION RESULTS
Here are the results of Monday's Treasury auctions.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
13-WEEK AND 26-WEEK BILLS
13-Week
26-Week
$126,794,993,300 $124,942,580,000
$42,000,005,800 $36,000,355,000
$517,683,800 $464,248,000
$200,000,000 $487,000,000
99.714361
99.363000
(1.130%)
(1.260%)
1.149%
1.286%
Coupon equivalent
79.79%
55.75%
Bids at clearing yield accepted
912796LJ6
912796PC7
Cusip number
Applications
Accepted bids
" noncomp
" foreign noncomp
Auction price (rate)
Both issues are dated Nov. 2, 2017. The 13-week bills
mature on Feb. 1, 2018; the 26-week bills mature on
May 3, 2018.
BY SHEN HONG
SHANGHAI—Chinese markets experienced a broad selloff,
losing some of the shine they
maintained during last week’s
major congress of the Communist Party.
The country’s $9 trillion
bond market led the losses.
Benchmark government-bond
prices reached fresh three-year
lows as perceptions grow that
Beijing will intensify efforts to
cut back high levels of leverage
in China’s economy during President Xi Jinping’s second fiveyear term as party leader.
Those concerns spread to
the stock market, with shares
in Shanghai snapping a six-day
winning streak. Prices of commodities futures, from copper
to iron ore, also headed south
on China’s domestic markets.
During the leadership gathering last week, Beijing stagemanaged an artificial calm in
China’s stock markets with
purchases by state-backed in-
vestment funds and unofficial
bans on excessive selling by
big investors.
Referring to the preoccupation with preserving stability,
known locally as wei wen, Qin
Han, chief fixed-income analyst at Guotai Junan Securities,
said, “Now that the Party Congress is over and the need to
wei wen has eased, people
have come to the conclusion
that the authorities will focus
back on the campaign to reduce financial leverage.”
The bond market’s gradual
selloff started as early as
Wednesday, after China’s central bank ended a six-day streak
of injecting cash into the financial system. “That was a strong
signal that the central bank has
no intention to cheapen borrowing costs,” Mr. Qin said.
The losses in bonds have
since intensified, pushing the
yield on the benchmark 10year government bond to a
three-year high of 3.93% Monday. Yields rise as prices fall.
The bond selling worsened
the mood among China’s
stock investors, pushing the
Shanghai Composite Index
down by as much as 1.7% in
the morning. The index then
narrowed its losses to close
down 0.8%.
Analysts said state-backed
funds, known as the “national
team,” had been in the market
buying large-cap stocks to help
prop up the market. “It’s clear
that state funds were propping
up the index by buying banks
and oil [company] shares to ease
the selloff,” said Zhang Xin, an
analyst at Guotai Junan Securities. “The main goal in the market is still to ensure stability.”
The market contagion also
spread to China’s commodities
futures, partly hit by Beijing’s
suggestion it will focus less on
the speed of economic expansion. Weaker state-led investment in fixed assets such as
infrastructure projects would
result in lower demand for raw
materials such as metals.
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 | Tuesday, October 31, 2017
THE WALL STREET JOURNAL.
* ***
MARKETS
Investors Boost Reward for Earnings Beats
As companies’ results
top estimates, the
number of gains by
their stocks turns up
BY MICHAEL WURSTHORN
Shares of companies that
topped analyst earnings expectations are faring better than
they did in the previous quarter, a sign the economic and
policy backdrop for stocks
looks brighter than only a few
weeks ago.
About 55% of companies in
the S&P 500 that reported
both
better-than-expected
earnings and sales so far for
the third quarter have notched
a stock-price gain during the
trading session that followed,
according to an analysis of
FactSet data through Monday’s
close. That is lower than the
average going back to 2015,
but it is an improvement from
the 49% of companies that got
a boost from topping estimates in the second quarter,
according to the data.
The percentage of companies that experienced a shareprice decline after missing expectations for earnings or
revenue is lower than in the
second quarter, the data show.
More than half of the companies in the S&P 500 had reported earnings through Friday, and another 140 reports,
including Apple Inc., are
scheduled for this week.
After several quarters of
solid growth, some analysts
have said beating expectations
may not be enough to keep
driving stocks higher. The second quarter was the first time
since 2011 in which S&P 500
companies that reported positive earnings surprises saw an
average price decline over the
two sessions before and after
results were released, according to FactSet.
Investors have been slightly
more generous with thirdquarter results. Some analysts
Improved Reactions
Investors are rewarding more companies for beating earnings expectations than they did in the previous quarter.
Percentage of S&P 500 companies that beat earnings and
sales expectations, and posted a stock-price gain in the
following session.
Percentage of S&P 500 companies that missed earnings and
sales expectations, and posted a stock-price decline in the
following session.
80%
80%
60
60
40
40
20
20
0
0
2015
’16
As of
Monday
’17
Share-price performance following second-quarter earnings
2%
Micron Technology
2015
10%
Corning
8
–2
6
–4
4
–6
2
0
One-minute intervals
10 a.m.
11
noon
1 p.m.
2
3
4
Second-quarter earnings per share
Micron Technology
10 a.m.
11
noon
$1.62
Actual
2
3
4
$2.02
$1.52
$0.42
$0.40
$1.84
$0.43
$0.41
Note: Reporting periods are based on calendar quarters.
Source: FactSet
and investors say that is partly
because the backdrop for
stocks has improved, as concerns over North Korea have
subsided and Republican lawmakers have made some progress toward a tax overhaul,
providing some support to the
market as companies report
1 p.m.
Third-quarter earnings per share
Estimate
Corning
As of
Monday
’17
Share-price performance following third-quarter earnings
0
–8
’16
their results. And several companies endured a series of hurricanes better than feared.
As companies released their
second-quarter earnings in
July and August, investors
were trying to gauge the impact of summer storms, escalating tensions between North
THE WALL STREET JOURNAL.
Korea and the U.S., terrorist
attacks in Spain and the aftermath of protests in Charlottesville, Va.
Glassmaker Corning Inc.
declined 5.3% on July 26 after
its results topped analysts’ expectations on earnings and
revenue. Chip maker Micron
Technology Inc. also reported
earnings and sales that exceeded expectations, but its
stock slid 5.1% on June 30.
In the most recent earnings
season, Corning and Micron
beat sales and earnings expectations again. This time, Corning rose 6.4% in the subse-
quent trading session, while
Micron gained 8.5%.
Insurance firm Travelers
Cos.’s stock rose 2.4% Oct. 19
after the company posted sales
that exceeded expectations
and eked out a profit amid one
of the costliest hurricane seasons on record.
While many investors say
earnings are the biggest driver
of stock prices over time, it is
difficult to pin any one move
on a single factor. However,
they say they are encouraged
by overall earnings growth in
the S&P 500 for the third quarter, even as it is set to fall short
of the double-digit gains posted
in the first half of the year.
Just before the start of the
reporting season, analysts expected earnings at S&P 500
companies to grow 4.2% from
the year-earlier period, according to FactSet. The growth rate
for the third quarter is now on
track for 4.5%, based on FactSet
data through Monday’s close.
Excluding insurance companies,
which took a hit from the summer storms, FactSet says the
growth rate would jump to 7.2%.
About three-quarters of
companies in the S&P 500 are
reporting actual earnings per
share above estimates, which
is more than the five-year average, according to FactSet.
Both earnings and sales figures for companies that reported are above their fiveyear averages, it added.
Investors’ faith in the health
of American companies has
helped send the S&P 500 up
roughly 15% so far this year.
Among the biggest threats to
the rally, investors and analysts say, are stretched valuations, renewed aggression
from North Korea and unexpected shifts around the Federal Reserve’s plans.
“Our clients are nervous,”
said Michael Mullaney, director of global market research
for Boston Partners. “Prices
have caused people consternation and they’re asking when
is this going to reverse.”
Документ
Категория
Журналы и газеты
Просмотров
2
Размер файла
9 415 Кб
Теги
The Wall Street Journal, newspaper
1/--страниц
Пожаловаться на содержимое документа