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The Wall Street Journal - April 7, 2018

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.
With Nixon in ’68
BY PATRICK J. BUCHANAN
gisele bÜndchen
WSJ. MAGAZINE
REVIEW
VOL. CCLXXI NO. 81
WEEKEND
* * * * * * * *
HHHH $5.00
WSJ.com
SATURDAY/SUNDAY, APRIL 7 - 8, 2018
U.S. Blacklists Russian Oligarchs
Treasury levels tough
sanctions on Putin’s
close allies and the
companies they own
World-Wide
he Treasury levied sanctions against more than
three dozen Russian individuals and entities in what U.S.
officials said was a response
to Kremlin aggressions. A1
T
China vowed to retaliate
forcefully if the U.S. imposed
new tariffs and ruled out talks
while Washington is escalating trade pressure. A1, A9
Kelly told Trump that he
is convinced EPA chief Pruitt
needs to step down after a
series of negative reports, a
White House official said. A3
Protests turned deadly at
the Israel-Gaza border as
Palestinians burned tires and
some tried to enter Israel
under military gunfire. A7
Brazil’s da Silva missed a
deadline to turn himself in as
he negotiated his surrender
to begin a 12-year jail term. A6
South Korea’s Park was
sentenced to 24 years in
prison for the ex-leader’s role
in a corruption scandal. A7
The administration is seeking to tighten rules governing
immigrants caught crossing
the Mexican border illegally. A3
closest business allies and the
companies they own.
The action is one of the administration’s toughest punitive measures against Russia
By Ian Talley in
Washington and
Thomas Grove in
Moscow
The Trump administration
levied sanctions Friday against
more than three dozen Russian
individuals and entities, targeting senior Russian government officials as well as some
of President Vladimir Putin’s
to date. U.S. officials say it is a
response to Russian aggressions, including meddling in
U.S. elections, cyberattacks on
critical U.S. infrastructure, the
Kremlin’s military intervention
in Ukraine and supplying
bombs and materiel to the regime of Syrian President
Bashar al-Assad.
“What we would like to see
is the totality of the Russian
behavior change,” said White
House press secretary Sarah
Huckabee Sanders. “We want
to continue having conversations and work forward to
Index performance
Turbulent
Week
WEEKLY CHANGE
Dow Jones
Industrial
Average
t0.7%
Index performance
2%
1
MONDAY
Stocks slide on
continued
concern over
the tech
industry’s
leading players.
TUESDAY
Spotify debuts
on the New
York Stock
Exchange, and
its shares
surge.
WEDNESDAY
Dow swings in a
741-point range,
highlighting the
resurgence of
volatility.
S&P 500
t1.4%
Nasdaq
Composite
t2.1%
0
–1
–2
Federal authorities
seized Backpage, a website
known for its sex ads. A4
Stocks sank amid fears
of a U.S.-China trade war
and investors braced for
more turbulence. The Dow
tumbled 572.46 points, or
2.3%, to 23932.76. The S&P
500 declined 2.2% and the
Nasdaq slid 2.3%. A1
U.S. payrolls rose again
last month, adding
103,000 jobs and extending the longest continuous
expansion on record. A1
Powell said the Fed will
stick to its path of gradual
rate increases to keep the
U.S. economy growing
without overheating. A2
Facebook said it would
soon require an authorization process for ads on hotbutton political issues. A1
The administration is
pursuing ways to protect domestic vehicle manufacturing
from import competition. A9
Amazon is considering
a plan to use its Alexa virtual assistant to make person-to-person payments. B1
Coinbase approached the
SEC about registering the
cryptocurrency firm as a brokerage and trading venue. B1
Longfin was accused of
violating securities laws
and trading in the firm’s
shares was halted. B10
Source: FactSet
THE WALL STREET JOURNAL.
Job Market Stays Resilient
BY ERIC MORATH
in March after February’s
outsize increase of 326,000,
the Labor Department said
Friday. That extended a historic streak—employers have
added to payrolls for 90
straight months in the longest continuous jobs expansion on record. And it picked
up of late: For the first three
months of the year, hiring averaged 202,000 a month, up
from 182,000 a month in
2017.
“Seventeen million jobs
have been created in this expansion, and the monthly
pace of job growth remains
more than sufficient to employ new entrants to the labor force,” Federal Reserve
Chairman Jerome Powell said
in remarks Friday in Chicago.
WASHINGTON—The U.S.
economy continues to churn
out jobs at a steady pace even
as financial markets wobble
over fears that a trade war
between the nation and China
could unsettle global growth.
Recent tit-for-tat trade
measures by the two countries continued on Friday,
with China saying it would
“hit back forcefully” if the
U.S. followed through with
President Donald Trump’s
tariff threats. The war of
words sent stocks tumbling,
but the economy showed underlying signs of near-term
resilience.
U.S. nonfarm payrolls rose
a seasonally adjusted 103,000
“The labor market has been
strong, and my colleagues
and I…expect it to remain
strong.”
The Fed is expected to
raise short-term interest
rates at least two more times
this year to prevent the economy from overheating.
There were few signs of
such overheating in the latest
report. The unemployment
rate held at 4.1% for the sixth
straight month, the lowest
level since December 2000.
A tighter labor market
should produce better wage
growth as employers compete
for scarce workers. While
Please see JOBS page A2
Fed will stick to plan for
gradual rate increases.......... A2
NOONAN A13
i
BY RAY A. SMITH
If Adults Won’t
Grow Up,
Nobody Will
Sports....................... A14
Style & Fashion D2-4
Travel...................... D5-6
U.S. News............ A2-5
Weather................... A14
Wknd Investor....... B5
World News.... A6-10
>
BY MICHAEL WURSTHORN
Growing tensions between
the U.S. and China exacerbated
investors’ fears of an all-out
trade war between the world’s
largest economies, shaving 572
points off the Dow Jones Industrial Average on Friday as
investors braced for more turbulence ahead.
All 11 major sectors of the
S&P 500 index declined as investors broadly sold stocks,
with the deepest declines
among big industrial manufacturers like Boeing Co. and Caterpillar Inc. that stand to suffer
from an escalation in protectionist trade policies.
Friday’s session marked the
S&P 500’s ninth 1% swing up or
down in the past 11 trading
days, a sign of stocks’ uneasy
footing and resurgent volatility.
Investors were already grappling with concerns that technology stocks won’t generate
the massive gains of previous
years and that inflation is rising more quickly than expected.
New data Friday showed that
wages rose last month in line
with gains of recent years.
But the issue of trade and
how far the Trump administraPlease see STOCKS page A8
Beijing pledges to counter
newly threatened tariffs..... A9
U.S. looks to aid domestic car
manufacturing........................... A9
The Man Behind
Trump’s China Fight
U.S. Trade Rep. Robert Lighthizer argued the
time had come for a confrontational approach
BY BOB DAVIS
WASHINGTON—President
Donald Trump’s tough policy
on China trade took shape in
a White House meeting last
August, and at the center
was an often-overlooked
man.
Decades of quiet negotiations had gotten nowhere, U.S.
Trade Representative Robert
Lighthizer told senior White
House advisers and cabinet officials gathered in the Roosevelt Room.
“China is tap, tap, tapping
us along,” he said, meaning it
regularly promised policy
changes but didn’t deliver. He
punctuated his talk with
charts showing how the trade
deficit with Beijing had widened.
U.S. Ambassador to China
Terry Branstad, linked by
videophone, asked for a
chance to conduct another
round of talks based on a
rapport he was developing
with the Chinese. He found
little support. It was time to
act, starting with a formal
investigation of China for
unfair trade practices, Mr.
Lighthizer argued.
A few days later, Mr. Trump
announced an investigation of
alleged Chinese violations of
U.S. intellectual-property
rights—headed by Mr. LighthiPlease see TRADE page A8
I Love My Unique, Personalized
Shirt! Oh, You Have One Too
i
Falls From
Grace
i
Stitch Fix, offering customized fashion,
has some seeing double; ‘same exact outfit’
Inside
s Copyright 2018 Dow Jones &
Company. All Rights Reserved
–4
FRIDAY
Stocks gyrate
and finish lower
after China vows
to strike back
‘forcefully’ at U.S.
trade measures.
Treasury Secretary Steven
Mnuchin said. “Russian oligarchs and elites who profit
from this corrupt system will
no longer be insulated from the
consequences of their government’s destabilizing activities.”
Russia’s Foreign Ministry, in
a statement, said the latest
U.S. steps will harm U.S.-Russian economic cooperation,
adding that no amount of pressure will deter Russia from its
Please see RUSSIA page A4
Stocks Plummet
Amid Escalating
Trade Tensions
MOHAMMED TALATENE/DPA/ZUMA PRESS
Business & Finance
CONTENTS
Books.................... C5-10
Business News.. B3,6
Food......................... D7-8
Heard on Street...B12
Obituaries............... A10
Opinion............... A11-13
THURSDAY
Dow extends
winning streak
to three sessions,
its longest in a
month, as trade
concerns ebb.
–3
building a better relationship.”
The steps are likely to contribute to an escalation in tensions between Russia and the
West. The blacklisting will
freeze U.S.-based assets of
those sanctioned, constrain
their ability to access Western
financing and forbid U.S. business transactions with those
targeted.
“The Russian government
engages in a range of malign
activity around the globe,”
When Angela Krile and Julie
Theado emerged from their cars
in the office parking lot, they
looked at each other and froze.
Ms. Krile was wearing a
white blouse with a keyhole
neckline and navy piping, and
navy blue pants. So was Ms.
Theado.
“We looked at each other and
realized we had on the same exact outfit,” said Ms. Krile, owner
of a communications firm in
Sugar Grove, Ohio, where both
women work.
The fashion faux pas wasn’t
supposed to happen. Both
women bought their tops from
Stitch Fix, the popular online
clothing service that prides itself on customer specialization.
Running into people wearing
the same clothes is a possibility
for anybody who shops big retailers. And there are online services, such as Trunk Club or
Rent the Runway, that sell or
rent fashionable outfits, which
could also result in two people
showing up at an event in the
same “special” dress. But customers say they expect it to
happen less, or not at all, because of the way Stitch Fix touts
the personalization factor.
Shoppers fill out detailed
questionnaires the company
says allow its stylists and computer algorithms to find perfect
fashion matches. Then it sends
boxes, or “fixes,” containing five
items that customers have the
option to buy. The company, on
Please see OUTFIT page A9
JEON HEON-KYUN/PRESS POOL/EPA
What’s
News
Brazil’s former
president, Luiz Inácio
Lula da Silva, far left,
missed a deadline as
he negotiated his
surrender to begin a
12-year prison term.
Meanwhile, South
Korean ex-President
Park Geun-hye was
sentenced to 24
years in jail. A6, A7
Facebook Sets ‘Issue’ Ads Rule
BY LARA O’REILLY
AND JOHN D. MCKINNON
Facebook Inc. will soon require that advertisers wanting
to run ads on hot-button political issues go through an authorization process first, a move
the social network hopes will
prevent the spread of misinformation across its platform.
The company announced in
blog posts Friday that it plans
to work with third parties to develop a list of key issues, which
will be updated over time.
Separately Friday, consumer
groups filed a complaint with
the Federal Trade Commission
saying Facebook violates users’
privacy rights through its facialrecognition software.
In October, Facebook unveiled a similar authorization
requirement for election-related
ads. The latest move will cover
“issue ads”—those that don’t
specifically mention a candidate
but weigh in on a divisive issue,
including during an election.
Such advertisers will be required to confirm their identiPlease see ADS page A4
.
A2 | Saturday/Sunday, April 7 - 8, 2018
* *****
THE WALL STREET JOURNAL.
U.S. NEWS
Central-bank Chairman
Powell wants labor
market and inflation
to strengthen further
BY DAVID HARRISON
Federal Reserve Chairman
Jerome Powell said the Fed
will stick to its path of gradual
interest-rate increases to keep
the economy growing without
overheating.
Mr. Powell, speaking Friday
in Chicago, suggested there was
no hurry to pick up the pace of
rate increases and described
the current course as a prudent
one that would balance the central bank’s desire to foster an
economy that is growing at its
full potential against the risk
that it could expand too rapidly
and send inflation soaring.
“As long as the economy
continues broadly on its current
path, further gradual increases
in the federal-funds rate will
best promote these goals,” he
said, referring to the Fed’s
benchmark short-term rate.
Mr. Powell spoke as the
Trump administration’s titfor-tat trade dispute with
China appeared to be escalat-
JOBS
Continued from Page One
wages are rising faster than
they did earlier in the expansion, they remain below longrun averages. Average hourly
earnings for all private-sector
workers rose 2.7% in March
from a year earlier—in line
with annual gains in recent
months.
Those raises have been
skewing toward managers.
The annual growth in wages
for nonsupervisors was 2.4%,
a pace that has held steady
since December. Hourly wages
haven’t increased at better
than a 3% annual rate in
nearly a decade. The last time
unemployment was this low,
in late 2000, nonsupervisor
wages rose 4.3% from the
prior year.
Employers have been able
to hold wage gains in check in
part because they have expanded the pool of available
labor, drawing in Americans
who have been out of the labor market.
One of them was retired
Army Col. Stephen Myers, 53
years old, who joined the civilian workforce for the first
time in three decades this
year when was hired as a district manager by Starbucks
Corp., overseeing 13 stores in
Washington state.
After taking some time off
after his military retirement
last June, Mr. Myers was
drawn to Starbucks by the
company’s culture, the opportunity to work near his wife’s
job and extensive training.
“They’ve invested in me
quite a bit,” said the former
battalion commander for a
field artillery regiment, who
admitted it was tricky to
master the coffee chain’s “flat
white” drink during the 12week training program he
completed last week. He
added, “The job affords me
the work-life balance I was
ing. Stocks fell Friday after the
White House said it was considering tariffs on an additional $100 billion in Chinese
imports on top of the $50 billion already announced.
The Fed chief sidestepped a
question on trade policy during a question-and-answer
session after his speech.
“Tariffs can push up on
prices, but it’s too early to say
whether that’s going to be
something that happens or
not,” he said.
Mr. Powell said the Fed
wants to see the labor market
strengthen further and inflation to hit its 2% target after
undershooting it for five years.
Holding inflation to that level
would signal a healthy level of
demand in the economy without burdening consumers with
sharply rising prices.
The challenge for central
bankers will be to raise rates
slowly enough to let the labor
market improve and inflation
strengthen, but not so slowly
that they let inflation get out
of control.
“Our path of gradual rate
increases is intended to balance these two risks,” Mr.
Powell said. For now, the Fed
has managed to thread that
JOSHUA LOTT/BLOOMBERG NEWS
Fed Sticks to Plan for Gradual Rate Hikes
Jerome Powell said the Fed’s plan is designed to balance risks.
needle, he said.
The Fed raised rates by a
quarter-percentage-point in
March and has penciled in two
more moves this year, for a total of three. After raising rates
once each in 2015 and 2016, it
raised rates three times in
2017 and began shrinking the
portfolio of assets it accumulated to spur the economy after the financial crisis.
“The [Fed’s] patient approach has paid dividends and
contributed to the strong
economy we have today,” Mr.
Powell said.
Roberto Perli, an economist
at Cornerstone Macro, described Mr. Powell’s speech as
“classic stay-the-course comments.”
San Francisco Fed President
John Williams delivered a similar message in a speech later
Friday, though he said raising
rates three or four times this
year “is the right direction”
for policy.
“I am confident that we can
carry on the process of gradually moving interest rates up
over the next two years while
seeing solid growth and his-
vest in more training for
workers,” said Susan Helper,
an economist at Case Western
Reserve University. “We’ve
not yet reached the levels of
employer desperation we saw
in 2000.” She recalled stories
of hiring agents standing outside prison gates nearly two
decades ago, waiting for inmates to be released.
Friday’s report showed
manufacturers added 22,000
jobs in March. The sector has
added better than 200,000
jobs since March 2017. That is
one factor helping draw men
back into the workforce.
AZEK Co., a Skokie, Ill.,
maker of building materials,
added 75 manufacturing
workers in the past year and
wants to hire 50 more for its
factory labor force of 810,
Chief Executive Jesse Singh
said. He said the company has
been raising wages and hiring
more full-time workers rather
than temporary staff.
“Our demand, driven by
U.S. remodeling and construction, continues to be solid,”
Mr. Singh said.
Employment also grew last
month in mining, including
oil-related jobs, and health
care, but fell at construction
firms after rising sharply in
February, a sign that an unusually warm February, followed by a cool start to
spring, could be affecting
monthly numbers.
Hyland Software in Westlake, Ohio, added 137 workers
to its staff of more than
2,000 in the past year, without raising wages much above
the rate of inflation. It has
done so by focusing recruitment on younger workers already in the region.
The firm last year hired
93% of the more than 100 interns it brought in from local
colleges. CEO Bill Priemer
said Hyland benefits from being an attractive, high-tech
employer in the Cleveland region but doesn’t attempt to
compete with salaries offered
by Silicon Valley firms.
“If you’re building your life
in northeast Ohio, we offer a
huge amount of opportunity
to grow,” he said.
Mr. Priemer, who started
with the company in the late
1990s, said the economy’s
current growth pace feels
more sustainable.
“I feel like there is more
running room in the economy
in general, and certainly in
software development,” he
said.
— Andrew Tangel
contributed to this article.
supply. The government said
Friday it had begun accepting
applications on Monday and
had already received enough to
meet the 85,000 cap.
Winners again will be chosen by lottery for applications
that are subject to the cap.
Mr. Trump said a year ago
he would change how H-1B visas are distributed in a way
that would have benefited hightech Silicon Valley companies
and hurt outsourcing firms, including many based in India,
that have come under scrutiny.
“Right now, H-1B visas are
awarded in a totally random
lottery, and that’s wrong,” Mr.
Trump said in April 2017. “Instead, they should be given to
the most skilled and highestpaid applicants, and they should
never, ever be used to replace
Americans.”
Outsourcers have been accused of replacing American
workers with foreigners and
generally pay far less than hightech companies. Average salaries at firms such as Amazon.com Inc., Google, a unit of
Alphabet Inc., and Apple Inc. are
tens of thousands of dollars
higher than at outsourcing
firms such as Cognizant Tech-
nology Solutions Corp., Tata
Consultancy Services Ltd. and
Infosys Ltd.
A spokesman for the
agency that administers the
program, U.S. Citizenship and
Immigration Services, said it
fully supports a Trump executive order called “Buy American,
Hire American” that ordered a
review of the program.
“We have provided policy
guidance and are working on
regulatory reforms to achieve
the goals associated with reform of H-1B visas,” said Jonathan Withington.
—Laura Meckler
Wages and Workers
Wages failed to break out in March, despite
the unemployment rate holding at a 17-year low....
Change from a year earlier in:
Wages*
Inflation (CPI)
...That's at least partially because employers are
drawing in workers from outside the labor force.
Percentage of the population age 25-54 that is
Employed
In the labor force (working or
looking for work)
84%
6%
82
4
80
2
78
0
76
–2
74
’08 ’09 ’10
’11
’12
’13
’14
’15
’16
’17
’18
’08 ’09 ’10 ’11
’12 ’13 ’14 ’15 ’16 ’17 ’18
*Average hourly earnings for all private employees Note: Seasonally adjusted
THE WALL STREET JOURNAL.
Source: Labor Department
seeking.”
A broad measure of unemployment and underemployment that includes Americans
in part-time jobs who want
full-time work, in addition to
discouraged individuals who
have stopped looking for
work, fell last month. Known
as the U-6, the rate was 8% in
March, which is still higher
than 6.9% in December 2000.
Its elevated level suggests
that slack remains in the labor market that could prevent
wages from breaking out.
“You’re really only starting
to see employers broaden out
their search and begin to in-
H-1B Visas Don’t
Fulfill Trump Plan
WASHINGTON—The government is set to again distribute
scarce H-1B visas for highskilled foreign workers by lottery, without the big changes
President Donald Trump promised to enact a year ago.
Demand for the visas—
which are used by outsourcing
firms and high-tech Silicon Valley companies, as well as by
many smaller employers—has
for years far outstripped the
torically low rates of unemployment,” he said.
Mr. Williams is set to become New York Fed president
in June, making him one of
the central bank’s most influential policy makers and a key
lieutenant of Mr. Powell’s.
Many employers complain
the labor market has grown so
tight they have a hard time
finding workers, but Mr. Powell questioned the severity of
the labor shortage Friday.
Although the unemployment rate has fallen since the
recession, he said, other indicators, such as moderate wage
gains and the low share of
Americans holding or seeking
jobs—the labor-force participation rate—suggest the labor
market could keep improving.
U.S. unemployment held
steady in March at 4.1%, a 17year low, the Labor Department said Friday morning, before Mr. Powell’s speech.
Average hourly earnings rose
2.7% from the previous year.
“The absence of a sharper
acceleration in wages suggests
that the labor market is not
excessively tight,” Mr. Powell
said. “I will be looking for an
additional pickup in wage
growth as the labor market
Final Day
THE WALL STREET JOURNAL
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strengthens further.”
The number of working-age
people who are either working
or looking for work is also below its prerecession levels.
Roughly 82.2% of those aged
25 to 54 were in the labor
force in March, about a percentage point lower than before the recession, according
to the Labor Department.
Annual inflation, which
weakened last spring, rose to
1.8% in February, according to
the Fed’s preferred measure.
Mr. Powell said the economy’s
strength should eventually lead
to stronger inflation. Although
the link between the labor
market and consumer-price increases “has weakened,” he
said, it “still persists, and I believe it continues to be meaningful for monetary policy.”
The Fed chief said last year’s
inflation decline was caused by
one-time price drops, such as
for cellphone plans. Once those
effects are no longer reflected
in annual figures, inflation
should “move up notably this
spring,” he said.
Fed officials in March estimated inflation would reach
2% by the end of next year.
—Michael S. Derby
contributed to this article.
U.S. WATCH
MISSISSIPPI
Ex-Rep. Mike Espy
Joins Senate Race
Former Rep. Mike Espy, a
Democrat who served as secretary of the U.S. Agriculture Department in the 1990s, said Friday he would run for the U.S.
Senate seat in Mississippi vacated by Republican Thad Cochran, giving his party a rare
shot at competing in the South.
Democrats see an opening in
the deeply conservative state
because Mr. Cochran’s successor
will be chosen in a November
special election that pits members of all parties against each
other on one ballot.
Mr. Espy served in the U.S.
House from 1987 to 1993, then
left to serve as then-President
Bill Clinton’s agriculture secretary. He was indicted in 1997 on
corruption charges but acquitted
on all counts the following year.
—Janet Hook
TEXAS
Allegations Prompt
GOP Resignation
Rep. Blake Farenthold resigned from Congress on Friday
amid an investigation into allegations of sexual harassment
and calls to reimburse U.S. taxpayers for a related settlement.
The Texas Republican had said
in December that he wouldn’t
run for re-election after the
House ethics committee launched
an investigation into sexual harassment allegations against him.
His announcement Friday, however, wasn’t expected.
In 2015, Mr. Farenthold drew
from a taxpayer fund to settle a
$84,000 sexual-harassment
claim against him, court documents and congressional data
show. He said in December he
would pay back the $84,000,
but hasn’t yet done so.
—Natalie Andrews
CORRECTIONS AMPLIFICATIONS
The U.S. is considering tariffs on an additional $100 billion of Chinese goods after a
proposal earlier this week of
tariffs on $50 billion in imports
from China. In some editions
Friday, a Page One headline
with an article about U.S.-China
trade incorrectly said $100 billion in added tariffs, and the article incorrectly said the earlier
proposal was made last week
and was for $50 billion in tariffs. In some editions Thursday,
a Page One article about U.S.China trade also incorrectly
said $50 billion in tariffs.
KPMG LLP was misspelled
as KMPG in two instances in a
Business News article Friday
about the audit firm’s relationship with General Electric Co.
Zoltanne Egressy, a female
Hungarian pensioner and
voter, was incorrectly referred
to on second reference as Mr.
Egressy in a World News arti-
cle Tuesday about the migration issue in Hungary’s election.
A graphic with a Life &
Arts article on Monday about
prostate cancer showed prostate-cancer cases and deaths
per 100,000 men. The graphic
inadvertently omitted that the
data were per 100,000 men.
Tote-bag maker Baggu is
based in San Francisco and
Brooklyn, N.Y. An Off Duty article on March 31 about alternatives to canvas bags incorrectly said Baggu is based in
Los Angeles and New York.
Axel Vervoordt owns an Indian lingam from the 19th century. Based on incorrect information from a member of Mr.
Vervoordt’s staff, the “Still
Life” article in the April edition of WSJ. Magazine incorrectly said that the lingam was
Japanese in origin.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | A3
* * * * * * * *
U.S. NEWS
Toll Scofflaws Could Face Felony Charge
Pennsylvania drivers
who cheat turnpike,
racking up bills and
fees, are targeted
COMMON TOLL
VIOLATIONS
u Vehicle uses cashless lane
without E-ZPass transponder
BY SCOTT CALVERT
u Transponder identification
fails
u Insufficient funds
in E-ZPass account
u Cash customer takes ticket
on entry but exits through
E-ZPass lane
JOHN GREIM//LIGHTROCKET VIA GETTY IMAGES
Drivers who routinely don’t
pay tolls in Pennsylvania could
be convicted of a felony.
The Keystone State’s Turnpike Commission has begun to
file criminal charges against
motorists it deems egregious
scofflaws. The recent initiative
involves enlisting local prosecutors to pursue theft of services criminal cases, which
reach felony status when the
sum owed exceeds $2,000.
The state’s top 100 toll
evaders each have more than
$21,000 in unpaid tolls and
fees. One driver is accused of
racking up more than $90,000
in debts since 2012, mostly in
snowballing fees, by using an
E-ZPass-only lane more than
1,600 times without a valid
transponder, according to a
criminal complaint.
Pennsylvania is “clearly
stepping up the game. I haven’t heard of anyone going to
this level before,” said Neil
Gray, government affairs director at the International Bridge,
Tunnel and Turnpike Association, which represents toll facility owners and operators.
Though Pennsylvania’s recent tactics stand out, toll
agencies around the U.S. are
also boosting efforts to ensure
drivers pay. The heightened
focus on collecting unpaid tolls
is linked to the move from toll
booths to all-electronic tolling.
In such cashless systems, transponders like an E-ZPass device provide instant payment.
Pennsylvania’s top 100 toll evaders each have more than $21,000 in unpaid tolls and fees. One driver’s total is more than $90,000.
For a car without a transponder, a camera photographs the
license plate, and the owner
gets a bill in the mail or pays
online.
Tolls collected are used to
maintain and upgrade the
roads as well as to pay the
bonds borrowed to build them.
Unpaid tolls cost the Pennsylvania Turnpike about $17 million a year, a fraction of the
$1.1 billion in overall toll revenue.
The share of toll revenue
collected in cash fell to 18% in
2015, from 29% in 2010, according to the association’s
2016 survey of three dozen
large U.S. toll agencies. Cashless transactions accounted for
more than $11 billion in reve-
nue for those agencies in 2015,
the report said.
Some agencies, such as the
North Texas Tollway Authority, are entirely cashless. The
Pennsylvania Turnpike uses a
paper ticket system on much
of its network, but a plan under consideration would convert the entire network to
cashless tolling in 2022.
The industry says cashless
tolling reduces congestion because drivers don’t need to
slow down.
But without “a forced mechanism to stop people,” the risk
of toll violations rises, said Pat
Jones, chief executive of the
International Bridge, Tunnel
and Turnpike Association. “I
think the industry has re-
top
violator
allegedly
$890,000 in arrears.
For years the Pennsylvania
Turnpike Commission had
minimal power to pursue
scofflaws. It could only send
violation notices and turn an
account over to collections.
Last year, a new state law allowed officials to suspend
Pennsylvania vehicle registrations for unpaid toll debts.
The turnpike commission’s
chief executive, Mark Compton, wondered if officials could
also use criminal courts, according to Ray Morrow, the
turnpike’s chief of compliance.
Mr. Morrow researched state
law and concluded that theft
of services applied.
So far the commission has
sponded,” he said.
Florida’s Turnpike Enterprise in late 2015 launched a
program that prevents a plateholder from renewing a Florida license plate until all tolls
are paid. The system credits
that process with a 15% drop
in unpaid toll revenue from
fiscal 2016 to 2017.
The North Texas Tollway
Authority in 2016 fully rolled
out an effort aimed at motorists with at least 100 unpaid
tolls in 12 months.
Some toll agencies name
and shame. The Illinois Tollway publishes a quarterly list
of “super scofflaws” who owe
at least $1,000. A recent version had 469 names, including
many trucking firms, with the
filed 13 private criminal complaints. A judge has approved
a payment plan in one case,
and the others are pending,
Mr. Morrow said.
Already the potential for
criminal prosecution has
helped spur payments or
agreed-upon payment plans
expected to bring in more than
$120,000, he said.
Among those facing a felony charge is Lori Yearick of
Mount Joy, Pa.
A criminal complaint alleges she incurred 1,645 violations between early 2012 and
March 2017. It says she received 6,580 notices in that
span. Unpaid tolls account for
about $26,000 of her roughly
$92,000 balance, the complaint says, and fees total
nearly $66,000.
Her lawyer, Edward Spreha
Jr., said he is still reviewing
the evidence.
“Certainly if they can prove
she in fact did this, we want to
make sure the turnpike is
made whole,” he said. “We
also have to make sure her
ability to repay is going to be
taken into consideration.”
BY PETER NICHOLAS
WA S H I N G T O N — W h i t e
House Chief of Staff John
Kelly told President Donald
Trump last week that he is
convinced Environmental Protection Agency chief Scott
Pruitt needs to step down after a series of negative reports about his spending habits and management style, a
White House official said Friday.
Though Mr. Kelly and other
White House aides have concluded Mr. Pruitt should leave,
the president is not ready to
fire him, the official said. Mr.
Trump welcomes the deregulatory measures taken by Mr.
Pruitt and also values him as
a strong advocate for the
president’s agenda, this person said.
The president, in a tweet
Friday, said Mr. Pruitt is doing
“a great job,” adding that he
is “TOTALLY under siege.”
That comment follows remarks aboard Air Force One
on Thursday in which he described Mr. Pruitt as doing “a
fantastic job.” He also said Mr.
Pruitt is a “fantastic person,”
adding that he still has confidence in the EPA administrator.
However, the president said
he would look into the various
controversies surrounding Mr.
Pruitt. “I have to look at
them,” Mr. Trump said, during
a flight home from a public
appearance in West Virginia.
“I’ll make that determination.”
An exit by Mr. Pruitt would
come in the midst of a highlevel staff shake-up by the
president. Mr. Trump recently
dismissed his secretary of
state and national security adviser, and tapped a new appointee for the Central Intelligence Agency. Two of those
positions will require Senate
approval for their successors,
JASON ANDREW FOR THE WALL STREET JOURNAL
Chief of Staff Told Trump EPA Chief Pruitt Should Go
EPA’s Scott Pruitt has drawn criticism for spending habits.
as would be the case for the
EPA administrator.
The EPA declined to comment. Over his first year, Mr.
Pruitt, a skeptic of climate
change, repealed some of former President Barack Obama’s
clean-air and other environmental policies. He also urged
Mr. Trump to pull out of the
New Steps Target Illegal Immigrants
The Trump administration
is seeking to tighten the rules
governing immigrants caught
crossing the Mexican border
illegally and intends to prosecute as many such people as
possible.
President Donald Trump
signed a memo Friday ordering officials at the departments of Defense, State,
Homeland Security and Health
and Human Services to provide detailed reports of how
each agency is doing its part
to end policies that limit how
immigration authorities can
quickly deport people.
The Republican president
said he wants details about the
construction of jails, improvements to the system for judging which immigrants should
be allowed to get a full hearing on an asylum claim and a
full accounting of military facilities that could be used to
house immigrants caught
crossing the border illegally.
Attorney General Jeff Sessions said Friday he is ordering
federal prosecutors to charge
and try as many first-time border crossers as “is practicable.”
“To those who wish to challenge the Trump administration’s commitment to public
safety, national security and the
rule of law, I warn you: illegally
entering this country will not
be rewarded, but will instead
be met with the full prosecutorial powers of the Department
LOREN ELLIOTT/AFP/GETTY IMAGES
BY ALICIA A. CALDWELL
U.S. Border Patrol agents at work last month along the U.S.-Mexico border near McAllen, Texas.
of Justice,” Mr. Sessions said in
a statement, describing the situation at the border as a crisis.
Immigration advocates decried the move to prosecute
more people, characterizing it
as an effort to block people
from their legal right to apply
for refuge in the U.S.
“Trump has been using the
specter of a migrant invasion
to justify his calls to keep vulnerable asylum seekers in prolonged detention,” said Clara
Long, a senior researcher at
Human Rights Watch, a nonprofit advocacy group, in a
statement. “For the people impacted by his proposed policy
changes—including vulnerable
children fleeing for their
lives—there are very real reasons to be afraid.”
The administration’s directives came as Defense Secretary Jim Mattis ordered on
Friday the deployment of up to
4,000 National Guard troops
to the border with Mexico.
In March about 37,000 people were caught crossing the
Mexican border, a substantial
increase over the same period
in 2017, a jump that the administration has cited as part of the
need for more border security.
Still, in the first half of the
budget year that started in Oc-
tober, more than 20,000 fewer
people have been caught entering the U.S. illegally, compared with the same period the
previous year, according to the
U.S. Border Patrol. Overall, arrests of illegal border crossers
are at the lowest level since the
early 1970s. Arrests have been
dropping for years due to an
improved economy in Mexico
and tighter U.S. border control.
Mr. Trump and other members of his administration have
been criticizing what they call
loopholes in immigration law
that allow some immigrants to
be released after being caught
crossing the border illegally.
Paris climate agreement—advice the president followed.
The White House said earlier this week it was conducting a review of Mr. Pruitt’s activities after news reports
that he had rented accommodations in Washington at below-market rates from the
family of an energy lobbyist.
Mr. Pruitt also has faced
questions over his travel expenses, and he had a testy interview with Fox News when
he was pressed over large pay
raises reportedly given to two
EPA employees.
Inside the White House,
aides have concluded that Mr.
Pruitt’s position is untenable,
with a drumbeat of news reports raising questions about
his managerial judgment and
spending practices.
The New York Times reported late Thursday that Mr.
Pruitt had reassigned or demoted several officials who
raised concerns about spend-
ing and management at the
EPA.
An EPA spokesman responded to the report by calling the officials “disgruntled
employees who have either
been dismissed or reassigned.”
Mr. Pruitt has defended his
living arrangements and said
he reversed the pay raises
given to two staff members
once he found out about
them. On the travel costs, the
EPA has said Mr. Pruitt’s protective services detail moved
him to a higher class due to
security protocols.
White House officials were
also upset about reports that
Mr. Trump phoned Mr. Pruitt
on Monday night in an effort
to encourage him. Two White
House officials said it was the
EPA, not the White House,
that alerted media to the
calls.
—Rebecca Ballhaus
contributed to this article.
.
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THE WALL STREET JOURNAL.
U.S. NEWS
FBI Seizes Website Known for Sex Ads
Backpage.com has
long been criticized by
police and opponents
of sex trafficking
ADS
Continued from Page One
ties and locations with the company.
The change marks the latest
step in Facebook’s efforts to secure its platform after Russianbacked groups used the social
network to sow divisions before
and after the 2016 U.S. presidential election, and elsewhere
in the world.
A selection of Facebook ads
released by U.S. lawmakers last
year showed how Russianlinked operatives used the platform to buy ads to stoke tensions around issues ranging
from race to gun rights, as well
as ads featuring the presidential candidates.
Starting this spring, electionrelated ads will carry a “Political Ad” label, alongside information on the advertisers who
paid for them, the company
said. In June, Facebook will
make public a searchable archive of the ads carrying that
label, including information on
the amount the advertiser
spent and the intended target
audience.
Political ads on digital platforms aren’t subject to the
same disclosure requirements
as in traditional media, such as
RUSSIA
Continued from Page One
course. Moscow, it said, would
respond firmly to the sanctions.
Among those sanctioned
were tycoons in Mr. Putin’s inner circle, including the Russian president’s son-in-law,
Kirill Shamalov, and oligarch
Oleg Deripaska. Share prices
for two of Mr. Deripaska’s
companies sanctioned by the
U.S. Treasury plummeted after
the announcement. United Co.
Rusal PLC, one of the world’s
largest aluminum producers
responsible for 7% of global
production, fell more than 10%.
Share prices for EN+ Group, a
sanctioned company that owns
Rusal and major Russian electricity and coal assets, fell 20%
after the news.
Friday’s sanctions were
viewed by many U.S. lawmakers and Western Russia experts as a litmus test for the
administration’s commitment
to punishing Moscow. Several
people targeted had connections to Mr. Trump’s 2016
presidential campaign and to
his cabinet, as well as to officials from previous administrations. The list will mute
some criticism by lawmakers
and others who say the White
House has pulled its punches
in challenging Moscow.
Tensions between Russia
and the West had been building for years, but they escalated to a new level after the
U.K. nerve-agent attack blamed
on Moscow and cyberhacks on
U.S. infrastructure, which U.S.
officials say were orchestrated
by the Kremlin.
Rep. Adam Schiff (D., Calif.),
the ranking member of the
U.S. law-enforcement agencies seized the classified-ad website Backpage.com on Friday.
tives at the company haven’t
been convicted of criminal
wrongdoing in the case.
The case, initially pursued
by California’s former attorney
general, Kamala Harris, who is
now a U.S. senator, suffered a
setback when Sacramento
County Superior Court Judge
Michael Bowman dismissed
the charges against Mr. Ferrer
and two other Backpage exec-
utives. “Congress has spoken
on this matter and it is for
Congress, not this court, to revisit,” said the judge, citing a
law passed in the early days of
the internet that granted immunity to websites from any
charges related to criminal activity they may facilitate.
California later filed another lawsuit on criminal
money-laundering charges,
television and radio stations,
which must publicly disclose
the campaign ads they broadcast.
In a blog post, Facebook
Chief Executive Mark Zuckerberg said the company supports
the Honest Ads Act, a bill in
Congress that would require
large digital platforms to keep a
public library of the paid political ads that appear on their
sites.
“This will help raise the bar
for all political advertising online,” Mr. Zuckerberg said.
Additionally, the company
will soon require people who
run Facebook pages with large
numbers of followers to go
through an authorization process, as it looks to make it
harder for fake accounts to
spread divisive content that has
the potential to go viral.
Facebook hasn’t disclosed
the number of followers a page
would have in order to trigger
an authorization request. It also
hasn’t provided details on what
this verification process will entail.
Facebook said it would hire
more staff to work on verifying
ads and pages and that it is investing in artificial intelligence
to help uncover advertisers that
have skirted the process.
Beyond the political-ad spectrum, beginning this summer
and that case continues.
A Justice Department
spokeswoman declined Friday
to directly address the seizure.
Lawyers for Backpage didn’t
respond to requests for comment.
“This is an ongoing investigation and in order not to
compromise it and future
prosecution efforts, I have no
information to provide at this
Facebook will let users globally
see all the ads a page is running, following a test in Canada,
the company said.
In recent weeks, Facebook
has been making a raft of
changes to its data-sharing and
privacy policies as it works to
rebuild trust among users and
regulators. Many of those
changes were kick-started following revelations that personal details of as many as 87
million users were improperly
obtained by Cambridge Analyt-
ica, a data-analytics firm that
worked for the 2016 Trump
campaign.
In a call with reporters on
Wednesday, Mr. Zuckerberg
said he had made a “huge mistake” in not focusing more on
the potential abuse of users’
personal information. He also
said he had been “too flippant” in 2016 when he dismissed the idea that fake news
could influence an election as
“crazy.”
The FTC is investigating the
Cambridge Analytica incident,
and Mr. Zuckerberg is set to
testify at two congressional
hearings next week.
The complaint about Facebook’s facial-recognition software was filed by a coalition of
consumer organizations led by
the Electronic Privacy Information Center. It focuses on a
Facebook feature that helps users identify people in uploaded
photos by suggesting the names
of people it recognizes.
The “Tag Suggestions” fea-
ture relies on sophisticated facial-recognition software that
compares faces in photos with a
massive database of face templates.
According to the complaint,
Facebook “routinely scans photos for biometric facial matches
without the consent of the image subject.” The company uses
Facebook users’ confirmations
to help “advance its facial recognition techniques,” the complaint said. It said these practices are deceptive and ignore
the explicit preferences of many
Facebook users.
Facebook defended its practices, saying users are able to
decide for themselves whether
to deploy the technology.
“People can choose whether
or not to allow this technology
and they can change their mind
at any time,” said Rob Sherman,
Facebook’s deputy chief privacy
officer. “When someone has
their setting turned off, we
don’t use this technology to
identify them in photos.”
The complaint is similar to
one filed in 2011 that didn’t
lead to FTC action.
EPIC President Marc Rotenberg pointed to recent changes
in Facebook’s use of facial recognition, including efforts to
tag nonusers who appear in
photos, as one reason for the
new concern.
and its destabilizing behavior.”
By sanctioning Mr. Deripaska
as well as numerous companies
associated with him, the Treasury Department appeared to
be sending a signal to Russians
who may become ensnared in
the broad investigation into
Russia’s meddling with the U.S.
elections. Mr. Deripaska is
known to have been a key pa-
tron of Paul Manafort, Mr.
Trump’s former campaign finance chairman who worked at
one time for Moscow-backed
Ukrainian President Viktor
Yanukovych.
U.S. officials said Mr. Deripaska had been investigated
over allegations of money
laundering and threatening the
lives of business rivals, and he
was previously barred from
the U.S. for his suspected ties
to organized crime. Mr. Deripaska, named in a public U.S.
Treasury blacklist in January
as a possible target for sanctions, stepped down as Rusal’s
president in late February. Mr.
Deripaska or a representative
for Rusal weren’t available for
comment.
“The consequences are far
reaching, it’s a dangerous moment that needs a whole-ofgovernment approach,” said
Heather Conley, a former deputy assistant secretary at the
State Department in the Bush
administration who is now a
senior vice president at the
Center for Strategic and International Studies. “We’ve seen
Russian behavior only escalate
and it’s unclear where we are
we going.”
The appearance of Viktor
Vekselberg, founder of the
Russian management and investment company Renova
Group, also sanctioned Friday,
is a surprise to some Kremlin
watchers, and it may unsettle
some Western officials who
have ties to the Russian magnate. John Deutch, who served
as director of Central Intelligence in the Clinton administration, sits on Renova’s board
of directors, as well as Josef
Ackermann, previously chairman of the management board
of Deutsche Bank. Messrs.
Deutch
and
Ackermann
weren’t available to comment.
According to Russia experts,
Mr. Vekselberg is a partner
with Ukrainian-born billionaire
Len Blavatnik, who Mr.
Mnuchin temporarily partnered with in his Hollywood
production and finance firm,
Ratpac-Dune. Mr. Mnuchin
told a government ethics office
last year he would divest him-
self of his interest in that and
other assets. Mr. Blavatnik is
also a major U.S. political financier, according to campaign
finance data collected by the
Center for Responsive Politics,
donating largely to Republican
candidates, but also to some
Democrats.
“This list of 12 companies
owned or controlled by the
sanctioned oligarchs should
not be viewed as exhaustive,”
the U.S. Treasury said, indicating the U.S. may penalize firms
and individuals linked to the
sanctioned entities.
Konstantin Kosachev, head
of the Council of the Federation Committee on Foreign Affairs who was added to Treasury’s blacklist, said the action
was “another unjustified, unfriendly and meaningless
step,” according to state-run
media RIA-Novosti.
Rostec, the parent company
of Russia’s arms-exporting monopoly
Rosoboronexport,
which was also sanctioned,
said the measures were an attempt to hit the country’s
arms exports, the second biggest in the world. Treasury
said the company was sanctioned for providing military
equipment and support for the
Syrian government.
“All these bold words and
accusations are just a pretext
to push Russia out of the
global arms market,” Rostec
said in a statement to Russian
news agencies.
The targeting of key individuals in Russia’s energy sector—the economy’s biggest industry—is a warning to
Moscow that the U.S. could hit
the country where it is most
vulnerable.
—Alan Cullison
in Washington
contributed to this article.
Facebook’s facial-recognition software compares faces in photos with a database of face templates.
House Permanent Select Committee on Intelligence who has
been one of the president’s
toughest critics in Congress,
praised Friday’s action. But he
added that the measures
“would be stronger if accompanied by a clear statement
from the president himself
that the U.S. recognizes Russia’s attack on our democracy
Russia in the Crosshairs
The U.S. blacklisted dozens of senior Russian government officials, businesses and allies of
Vladimir Putin on Friday, citing what it called the country's meddling in U.S. elections, cyberattacks and
military actions in Ukraine and Syria.
The sanctioned, how they are connected and Treasury allegations against them
Companies (12)
Oligarchs (7)
Senior gov. officials (17)
State-owned firms (2)
Owner
Owned
Has been investigated for money
laundering and accused of
threatening rivals’ lives and taking
part in extortion and racketeering
Government
Weapons trading
official accused
company
Suleiman of money
Rosoboronexport
Kerimov laundering
and tax
evasion
GAZ
Group
Oleg
Deripaska
Agroholding
Kuban
EuroSibEnergo
Andrei
Skoch
EN+
Group
United Co.
RUSAL
Gazprom
Burenie
Subsidiary
Russian
Financial Corp. Bank
(RFC Bank)
B-Finance
Basic
Element
Russian
Machines
NPV Engineering
Open Joint
Stock
Igor
Rotenberg
Vladimir
Bogdanov
Vladislav
Reznik
Source: Treasury Department
Trump, a Republican, is expected to sign the bill.
Its passage marked a rare
political defeat for big technology firms, which have become a powerful lobbying
force in Washington in recent
years.
Since then, a number of
websites have taken down forums allegedly involved in sex
solicitation, including Craigslist and Reddit. Others, such
as NightShift and CityVibe,
have shut down.
Large companies such as
Alphabet Inc.’s Google long
resisted any change to the immunity law, fearing it could
lead to a greater erosion of
their congressionally granted
legal protections. Tech advocacy groups have supported
Backpage in some of its legal
battles.
But a series of political issues, including Russia’s alleged use of online platforms
to meddle in the 2016 presidential election, have diminished the tech industry’s
standing in Washington, making it easier for lawmakers to
pass the legislation effectively
targeting adult-services sites.
Backpage’s seizure on Friday didn’t appear directly
linked to the legislation, but
instead resulted from a longrunning investigation by federal and state authorities.
ERIC RISBERG/ASSOCIATED PRESS
WASHINGTON—Federal
law-enforcement
agencies
have seized Backpage.com, a
controversial classified-ads
website known for its numerous sex-related postings.
“Backpage.com and affiliated websites have been
seized,” said a large notice
plastered on the site.
The action was led by the
Federal Bureau of Investigation, U.S. Postal Inspection
Service and Internal Revenue
Service, and included participation from state authorities.
Backpage, already the subject of multiple criminal
probes, has become a lightning rod for critics of websites
accused of turning a blind eye
to sex trafficking.
It has galvanized lawmakers
to pass a law limiting the immunity of websites for the actions of their users.
Backpage CEO Carl Ferrer
was arrested in 2016 in Texas
and charged in California with
offenses including multiple
counts of pimping of minors.
Mr. Ferrer and other execu-
REUTERS
BY LALITA CLOZEL
time,“ said Nicole Navas Oxman, a Justice Department
spokeswoman.
Backpage has positioned itself as a champion of free
speech. In a federal appeals
decision in 2015, the company
won a lawsuit against a sheriff’s office in Illinois that had
pushed credit-card companies
to drop the website.
Members of Congress, including Sens. Claire McCaskill
(D., Mo.) and Rob Portman (R.,
Ohio), have investigated the
alleged role of Backpage in the
sex-trafficking system.
“This is great news for survivors, advocates, and law enforcement,” said Ms. McCaskill
on Friday, adding the action
was “further proof” that the
legislation could help combat
sex crimes. “State and local law
enforcement need this bill to
enable them to take swift action against websites that
knowingly facilitate sex trafficking of children online, and to
stop the next Backpage long before another website can claim
so many innocent victims.”
A bipartisan bill passed last
month, led by Sen. Richard
Blumenthal (D., Conn.) and Mr.
Portman, would amend the
Communications Decency Act
of 1996 to roll back immunity
that Congress had conferred
on websites for the actions of
their users. President Donald
Official with
longstanding ties to
Russian organized
criminal groups,
including time spent
leading one such
enterprise
Mikhail
Fradkov
Renova
Group
Ladoga
Menedzhment
Viktor
Vekselberg
Kirill
Shamalov
Evgeniy
Shkolov
Alexander
Torshin
Andrey
Akimov
Alexey
Dyumin
Sergey
Fursenko
Oleg
Govorun
Vladimir Konstantin
Kolokoltsev Kosachev
Vladimir
Putin’s
son-in-law
Vladimir
Ustinov
Timur
Valiulin
Andrey
Kostin
Alexei
Miller
Nikolai
Patrushev
Alexander
Zharov
Viktor
Zolotov
THE WALL STREET JOURNAL.
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | A5
* * * *
U.S. NEWS
Trump Web Store
Taxes in 2 States
For President, the Attacks
On Amazon Are Personal
BY RUTH SIMON
Early in President Donald
Trump’s term, when White
House officials heard him complain vociferously about Amazon.com Inc., they arranged
private briefings in the Oval
Office to make sure that he
would talk knowledgeably
about the company.
Gary Cohn, his top economic
adviser, and other officials gave
PowerPoint presentations and
briefing papers they believed
debunked his concerns that Amazon was dodging taxes and exploiting the U.S. Postal Service.
It made little difference. Mr.
Trump persisted in attacks that
ran counter to the material they
had showed him. “It’s not the
narrative he wants,” one person
familiar with the matter said of
the briefings. “He clearly didn’t
find it persuasive because he
keeps saying it’s untrue.”
In the past week, Mr. Trump
has turned what were sporadic
and often private criticisms into
a sustained volley of tweets
against Amazon, often causing
stock-market fluctuations.
Fueling Mr. Trump’s ire is
not so much Amazon, the online
giant that is revamping the retail industry, but the company’s
Chief Executive Officer Jeff Bezos, who also owns the Washington Post, people close to the
White House say.
Mr. Trump sees Mr. Bezos’s
hand in newspaper coverage
he dislikes and is lashing out
at Amazon as a proxy, these
people said.
The White House didn’t respond to a request for comment. A Post spokeswoman,
asked for a response, referred to
quotes from the paper’s leadership in a story published Thursday. In that piece,
publisher Frederick J. Ryan Jr.
said that Mr. Bezos has “never
proposed a story.”
“Jeff has never intervened in
a story. He’s never critiqued a
story. He’s not directed or pro-
CHRIS KLEPONIS/DPA/ZUMA PRESS
BY PETER NICHOLAS
President Donald Trump, left, and Jeff Bezos, right, participated in a forum in Washington last year.
posed editorials or endorsements,” Mr. Ryan said.
Amazon declined to comment. But the company says it
collects sales taxes on its own
inventory in all 45 states that
have that type of tax and has
voluntarily started collecting
taxes in some municipalities.
Many small businesses selling
products on Amazon’s site don’t
collect sales taxes outside of the
states where they are based.
Still, Mr. Trump stepped up
his attack Thursday, tweeting
about the company and telling
reporters aboard an Air Force
One flight home from West Virginia: “Amazon is just not on an
even playing field. They have a
tremendous lobbying effort, in
addition to having the Washington Post, which is, as far as I’m
concerned, another lobbyist.”
“Look at the sales tax situation,” Mr. Trump added, suggesting the company doesn’t
pay its fair share of them.
Mr. Trump’s most recent
statements prompted aides to
go back to him this week to tell
him his Amazon critique might
be “missing the point,” a White
House official said. In response,
Mr. Trump has been “digging
in,” this person said.
In past briefings, his advisers
have told him how Amazon pays
taxes, the person familiar with
the matter said.
E-commerce giant’s
CEO, who also owns
the Washington Post,
is target of Trump ire.
The president’s advisers similarly have presented financial
data that show the Postal Service’s financial woes are being
caused by forces other than
Amazon: notably that people
are sending far fewer letters.
The Postal Service has suffered a decline in revenue from
first-class mail delivery of about
7% in the fiscal year that ended
in November. Meantime, it has
had strong growth in package
delivery, the category that
would account for Amazon and
many other online retailers,
with revenue growing 11% in the
same fiscal year to November.
Mr. Trump’s most recent
flurry of tweets targeting Amazon has coincided with the publication of Post stories he dislikes—one that documented
problems at a White House office that vets political appointees and another that depicted
Mr. Trump acting more independently of chief of staff John
Kelly and other “moderating
forces.”
Privately, Mr. Trump has
“talked about the fact the Washington Post is solely owned by
Jeff Bezos and he [Mr. Bezos] is
using that same entity to take
on the president and the administration,” said one person who
talks to Mr. Trump regularly.
Another person close to the
White House said: “Every time
there was a bad story, it [Amazon] would come up.”
The Trump administration
is pushing for online retailers
to pay more in state and local
taxes. One retailer that could
be affected by a stricter tax
policy: the online store of the
Trump Organization, which
collects sales tax from consumers in only two states.
The TrumpStore.com website, which sells $100 polo
shirts, baseball caps, spa teddy
bears and other Trumpbranded merchandise, collects
sales tax on orders shipped to
addresses in Florida and Louisiana, according to the company’s website.
The site, which describes itself as the official retail website of the Trump Organization, doesn’t collect sales
taxes from New York residents. The TrumpStore.com
website invites shoppers to
“visit our brand new Trump
Tower flagship retail store” in
New York City.
The website was registered
by the Trump Organization,
which has its headquarters in
Trump Tower. The website
contains information about
the retail store and the e-commerce site, but it is unclear
how ownership of the entities
is structured.
“Trumpstore.com has always, and will continue to collect, report, and remit sales
taxes in jurisdictions where it
has an obligation to do so,” a
Trump Store spokeswoman
said. The spokeswoman and
the chief legal officer for the
Trump Organization didn’t respond to requests for additional information.
A White House spokeswoman declined to comment,
and referred questions to the
Trump Organization.
States require a business
with a physical presence in a
state to collect sales taxes on
online purchases delivered to
those states. A spokesman for
the New York State Department of Taxation and Finance
said it can’t comment on specific businesses for privacy
reasons.
In recent days, President
Donald Trump has slammed
online retailer Amazon.com
Inc. for not paying enough in
taxes to state and local governments. In a legal brief filed
on March 5, the Trump administration urged the Supreme
Court to let states require that
retailers collect sales taxes
even where they lack a physical presence. The court will
hear oral arguments on April
17.
“States indisputably may
tax sales to state residents by
out-of-state retailers,” the
Trump administration said
last month in its court filing in
support of a South Dakota law.
Requiring retailers to collect
The president has
accused Amazon.com
of not paying enough
sales tax to states.
sales tax only where they have
a physical presence “would
substantially impede state tax
collection,” it said.
Mr. Trump handed over
management of the Trump Organization, the umbrella company operating the family’s
business, to his sons, Eric and
Donald Jr., in 2017, but retained ownership of the company. The family company
earns much of its income from
real-estate holdings and licensing deals.
The Trump Organization
declined to explain why the
online store collects taxes in
Louisiana and Florida, but tax
experts say the company
would be required to do so if
it has a physical presence in
those states.
—Richard Rubin
and Michael C. Bender
contributed to this article.
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A6 | Saturday/Sunday, April 7 - 8, 2018
* ******
THE WALL STREET JOURNAL.
WORLD NEWS
As Aid Is Turned Away, Venezuelans Die
Regime prohibits
most outside medical
donations, limiting
lifesaving drugs
Those in Need of
Transplants Wait
CALABOZO, Venezuela—In
Spanish, the name of this town
in Venezuela’s scorching central plains means dungeon. For
Marta Solorzano, the recipient
of a transplanted kidney, being
here turned into a death sentence.
With Venezuela’s state-run
health-care system in ruins
and the country’s economy
collapsing, the government
last year stopped supplying
the pills Ms. Solorzano needed
to keep her organ functioning,
her family and her doctor said.
Without the medicine, the
50-year-old former janitor suffered chronic fatigue and debilitating pain for months as
her body rejected the kidney,
said her husband, Enzo Array.
She died on March 4.
“My world has been taken
away from me,” Mr. Array said
during a recent visit to her
grave, where her name had
been etched with a stick in a
layer of cement. “I blame the
government.”
The state agency responsible for providing the drugs
didn’t respond to a request to
comment.
Venezuelan President Nicolás Maduro’s cash-strapped
Socialist regime prohibits
most international humanitarian donations—including contributions of lifesaving medicines—except from a few
remaining allies such as Russia. The authoritarian leader
and his lieutenants have denied the country is in a humanitarian crisis and they
consider international aid part
of a ploy by the U.S. and political rivals to besmirch the government and open the door to
foreign intervention.
“No way are we going to allow this right wing to impose
a supposed humanitarian aid
when our people are already
being tended to by President
Maduro,” Venezuela’s Health
Minister Luis López said in
December.
Public health has deteriorated sharply in what used to
be one of Latin America’s richest nations. Venezuela’s infant
mortality rate was higher than
in Syria in 2016, according to
Health Ministry figures. Cases
OSCAR B. CASTILLO/FRACTURES COLLECTIVES FOR THE WALL STREET JOURNAL (3)
BY KEJAL VYAS
AND RYAN DUBE
Enzo Array in the cemetery where his wife is buried, and showing a photo of her, bottom right. Bottom left, Moravia Vicuña.
of diphtheria and malaria, diseases controlled by most Latin
American nations, have increased amid a lack of vaccinations, the ministry said.
“The situation is complicated, I think that is a point
that we all agree on due to the
social, political and economic
issues,” said José Moya, a Peruvian doctor who is the representative in Venezuela for
the Pan American Health Organization, a branch of the
World Health Organization.
“This has really affected the
purchase of supplies, the func-
tioning of hospitals, [and] it is
affecting the availability of
medicine.”
In March, the U.S. Treasury
sanctioned Carlos Rotondaro,
former head of the government’s Social Security Institute, which is responsible for
providing drugs for chronic illnesses. The U.S. said mishandling of health care by him
and others has contributed to
outbreaks of once-controlled
diseases like diphtheria and
measles.
Mr.
Rotondaro
couldn’t be reached to comment.
“We have a scarcity of almost 100% of medicines and
what is available, people cannot afford,” said Feliciano
Reyna, head of a Caracasbased health-advocacy group,
Solidarity Action, which has
tried to open the country to
international medical aid. “We
are seeing more and more
deaths and suffering.”
Patients with transplants
are particularly vulnerable because of the risk that their
bodies will reject the new organs, an outcome immune system-suppressing drugs can
Trump Sparks Backlash in Mexico
BY JOSÉ DE CÓRDOBA
AND ANTHONY HARRUP
By Jeffrey T. Lewis,
Luciana Magalhães
and Paulo Trevisani
Mexican President Enrique Peña Nieto won widespread praise with his address on Thursday.
The positive response generated by the Mexican leader’s
tougher language suggests the
U.S. administration may find a
less pliant Mexico in the
months and years ahead as
‘Nothing, or no one,
is above our dignity
as a nation,’ says
President Peña Nieto.
both nations try to work on issues ranging from a renegotiation of the North American
Free Trade Agreement to
cross-border security, drug
trafficking and migration.
“I think the tide has shifted
among Mexicans about how
much they are willing to put up
with being a constant target
for the U.S. president,” said
Andrew Selee, president of the
Washington-based Migration
Policy Institute.
A day earlier, Mexico’s Senate urged Mr. Peña Nieto to
suspend bilateral cooperation
in the fight against illegal migration and organized crime
until Mr. Trump changes his
stance toward Mexico.
The Senate request had
unanimous support from all
political parties, said Laura Rojas, a senator from the conservative National Action Party
and head of the Senate Foreign
Relations Committee.
“If there’s no consequence
to Mr. Trump’s threats, Mexico
won’t be able to force a real
change in his hostile stance,”
said Sen. Rojas, who led the
Senate’s proposal.
But top Mexican officials
have argued that the bilateral
relationship is too important to
risk with an emotional backlash. Foreign Minister Luis Videgaray said in a radio interview
Friday that the fight against
organized crime groups that
operate in Mexico and the U.S.
is in the interest of Mexico’s
security and depends on bilateral cooperation to be effective. “What we’re not going to
do is put at risk the security of
Mexico and Mexicans,” he said.
But that dynamic could
change with a new leader, especially if Andrés Manuel López Obrador, a leftist nationalist, maintains his big lead and
captures the presidency.
“Our country, our people are
not going to be a piñata for
any foreign government,” he
said at a speech to packed
crowds in the border city of
Laredo on Thursday.
recommended.
“I’m so worried, I can’t
sleep,” said Ms. Vicuña, who
lives in a town not far from
Calabozo. “I just want to live,
that’s all.”
At a funeral home in a
nearby town, Rafael Funes, 48,
was making burial arrangements for his 40-year-old wife,
Luz Marina Martínez. She
went a month without pills for
her donated kidney, he said.
“It’s just cruelty,” Mr. Funes
said, breaking down in tears.
—Mayela Armas in Caracas
contributed to this article.
Brazilian Ex-President
Misses Arrest Deadline
SÃO
BERNARDO
DO
CAMPO, Brazil—The country’s
former president, Luiz Inácio
Lula da Silva, missed a deadline to turn himself in Friday
as he negotiated the terms of
his surrender to begin serving
a 12-year jail term, a person
familiar with the talks said.
The 72-year-old was expected to spend at least a sec-
MEXICAN PRESIDENCY/AGENCE FRANCE-PRESSE/GETTY IMAGES
MEXICO CITY—At least for
a day, U.S. President Donald
Trump has managed to unite
Mexico’s fractious politicians.
In this case, against him.
Mexico’s President Enrique
Peña Nieto won widespread kudos here following a nationally
televised address on Thursday
in which he used uncharacteristically strong language to tell
Mr. Trump to stop treating
Mexico like a political punching
bag, after the U.S. leader spent
a week criticizing Mexico over
migration and border security
and decided to send National
Guard troops to the border.
Mr. Trump’s lashing out at
the U.S.’s southern neighbor
tied in with his frustration
with Congress over funding his
southwest border wall, after a
recent spending bill funded
only a slice of the project.
“President Trump…if your
recent statements derive from
a frustration with your domestic policy or with your laws or
Congress, talk to them, and not
to Mexicans,” Mr. Peña Nieto
said in the video. “If there is
one thing all Mexicans agree, it
is that nothing, or no one, is
above our dignity as a nation.”
All four leading Mexican
presidential candidates—who
have spent months in the runup to hotly contested election
in July savaging the president
on issues like corruption and
crime—came out with statements against Mr. Trump and
offered rare praise for Mr.
Peña Nieto.
Before the video, Mr. Peña
Nieto’s government caught a
lot of flak from critics who
have accused it of not taking a
strong stance against Mr.
Trump’s unending stream of
insults and attacks.
help prevent. There are about
3,500 transplant patients—
most of them kidney recipients—in Venezuela, according
to health-advocacy groups.
For months, 56-year-old
Moravia Vicuña has been taking just one of the three immunosuppressive drugs she
has been prescribed. Recently,
she was down to fewer than 10
pills. She said she and her
older sister, Carmen, pawned
their bed and television to pay
for her last pack of pills,
which she is taking only one of
the four times a day doctors
Venezuela’s transplant
program was suspended in
mid-2017 because of financial
troubles, leaving 5,000 patients who await new kidneys
in limbo, advocacy groups
said.
Without antirejection
drugs, an organ can deteriorate in as little as 48 hours. A
patient rejects a transplanted
organ every two days in Venezuela, according to the Caracas-based health-sector
watchdog Codevida.
The malnutrition now
common in Venezuela means
patients also face higher risks
for organ rejection, said Dr.
Luis Hernández, a nephrologist at University Hospital in
Caracas.
“We have to help the people,” said Dr. Hernández, who
added he has called on the
government to accept international aid.
In January, the Pan American Health Organization said
it helped Venezuela purchase
135,000 pills of the immunosuppressive drug tacrolimus at a discount. But that
covers just one of several
medications that doctors prescribe to transplant patients,
activists say.
Last year, PAHO signed an
agreement with Venezuela’s
Social Security Institute that
allows it to purchase immunosuppressive drugs at a discount.
About 500,000 pills of
another immunosuppressive
drug called mycophenolate
are expected to be delivered
in April, said José Moya, a Peruvian doctor who is the
PAHO’s representative in Venezuela.
ond night in a trade union hall
after being ordered on Thursday to surrender by 5 p.m. local time Friday or face arrest.
Mr. da Silva was holed up in
the headquarters of a metalworkers union hall in this industrial suburb of São Paulo
where he began his rise to national prominence as a union
activist in the 1970s. Both a
polarizing and popular figure,
the man known across Latin
America as Lula had quickly
attracted supporters from his
Workers’ Party, who gathered
outside the union hall and
pledged to protect their leader
from the police.
The former president’s defenders gathered on a narrow,
mostly residential street as
Mr. da Silva conferred inside
the six-story building, which
was draped with banners
reading “No to Lula’s imprisonment” and “Election without Lula is a fraud.” A sound
truck was parked outside, its
giant loudspeakers blasting
samba between speeches from
Mr. da Silva’s supporters.
Street vendors sold beer, ice
cream and barbecued meat.
“An innocent man does not
surrender,” said Ângela Kinzu,
62 years old, who was among
those who arrived at the union
headquarters. “We are in a war.”
They and other Brazilians
who support Mr. da Silva see
the court order and last year’s
conviction against him—part
of a broad investigation of
corruption that has led to the
jailing of dozens of public officials and businessmen—as a
conspiracy to end his drive to
win back the presidency. Polls
showed the former president
topped all candidates ahead of
the October election.
At the union hall, Mr. da
Silva’s supporters formed a
human barrier to protect their
leader through much of Friday.
Many wore the red that symbolizes the Workers’ Party,
which held power here from
2003 until 2016.
“The right-wing wants to
keep the workers away from
power,” said Marcos Ferraz,
58, who was selling $7 red Tshirts with Mr. da Silva’s image. “There is a prejudice
against the working class.”
Marco Antonio Silva, 26, a
law student, said that he
joined in to “support and defend democracy.” To him, arresting Mr. da Silva amounts
to “an aggression against the
constitution.”
The case against Mr. da Silva
has led to a spectacular fall
from grace for a man who went
from fighting a military dictatorship in the early 1980s to
leading an increasingly powerful
labor movement that brought
him to the presidency in 2003.
Assisted by high commodity
prices and demand from
China, Brazil under Mr. da
Silva maintained a balanced
federal budget while attracting
investment and funding social
programs that helped 30 million rise from poverty.
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | A7
* * * *
WORLD NEWS
BY EUN-YOUNG JEONG
SEOUL—A court sentenced
former South Korean President Park Geun-hye to 24
years in prison for her involvement in a corruption
scandal that led to her ouster
from office and ensnared some
of the country’s top officials
and business leaders.
The ruling on Friday, which
included a fine of about $16.8
Park Geun-hye,
66 years old,
was given a
24-year prison
term. She is
expected to
appeal.
million, fell short of the 30-year
prison term and $110 million
fine prosecutors had sought.
Still, the sentence handed to
Ms. Park, the 66-year-old
daughter of South Korea’s longest-serving president, was the
heaviest the courts have meted
out to any figure in the graft
affair that shook the country
from late 2016.
In a related case, Lee Jaeyong, the third-generation
Samsung heir considered the
country’s most powerful busi-
nessman, was imprisoned last
year for bribery and embezzlement, and released earlier this
year on a suspended sentence.
He has appealed his case to
the Supreme Court.
The scandal that brought
down Ms. Park focused attention on the country’s traditionally close links between
the government and familyrun business conglomerates.
The court found the former
conservative leader guilty on
nearly all charges, including
bribery, disclosing state secrets, and abuse of power.
The former president was
acquitted on two bribery
counts related to some of
Samsung’s payments to organizations controlled by her
friend, Choi Soon-sil.
Ms. Park is expected to appeal. She had previously denied any wrongdoing. Her lawyers couldn’t be reached to
comment. In February, Ms.
Park’s longtime confidante Ms.
Choi, who was alleged to have
colluded with the former president to extract bribes, was
sentenced to 20 years in
prison. She has appealed.
Ms. Park wasn’t present for
the verdict, which was televised nationally. She hasn’t
appeared in court since October.
WORLD WATCH
MOHAMMED TALATENE/DPA/ZUMA PRESS
South Korea’s Former
President Is Sentenced
A veiled Palestinian woman stood Friday in front of burning tires in Gaza. Organizers have said the demonstrations will continue until May 15.
Seven Die in Gaza Clashes
Demonstrations at the fence
dividing the Gaza Strip and Israel turned deadly again Friday, as Palestinians burned
tires that sent up plumes of
smoke and some tried to cross
the border amid Israeli military gunfire.
By Rory Jones in Tel
Aviv and Abu Bakr
Bashir in Gaza City
UNITED KINGDOM
LEBANON
Poisoning Victim’s
Condition Improves
Foreigners Commit
To $11 Billion in Aid
Former Russian double agent
Sergei Skripal is no longer in
critical condition after being poisoned by a nerve agent last
month, offering investigators an
opportunity to shed light on crucial details about the attack.
Christine Blanshard, medical
director at Salisbury District
Hospital, where Mr. Skripal was
being treated, said the 66-yearold was responding well to
treatment and improving rapidly.
—Jenny Gross
International donors pledged
$11 billion in aid to Lebanon on
Friday at a Paris conference,
aiming to bolster the economy
in a country seen as a bulwark
in a volatile region.
The conference is the second
of three meant to support Lebanon as it struggles with a lagging economy and an influx of
refugees from the Syrian war
raging next door that is straining
its already weak infrastructure.
—Nazih Osseiran
Seven Gazans died, including
a 16-year-old, and nearly 300
were injured, Palestinian health
authorities said. The Israeli military said the army responded
with gunfire and water cannons
as Palestinians hurled firebombs at soldiers and attempted to infiltrate Israel.
The demonstrations, which
organizers said will continue
for weeks, have presented Israel
with a new military and political challenge as it aims to avoid
a mass breach of the fence
while also responding to inter-
national calls to show restraint.
Palestinian health authorities said at least 26 people have
been killed in the past week’s
demonstrations and more than
2,000
injured,
including
roughly 1,000 from gunfire.
The new protests involved
thousands again but appeared
quieter than the week before
and Israel appeared to be using less tear gas to disperse
Palestinians, according to people at the demonstrations.
Palestinian demonstrators
are calling for the right to return to their ancestors’ villages and towns in what is
now Israel, a demand Israeli
officials reject because they
say it would risk the country’s
Jewish majority.
Organizers have said the
demonstrations will continue every day until May 15,
known among Palestinians as
“Nakba Day” or “Day of the
Catastrophe,” the day after the
date of Israel’s 1948 founding.
The government of Prime
Minister Benjamin Netanyahu
says Islamist movement Hamas,
which rules Gaza and is designated a terrorist organization
by the U.S. and Israel, is using
the demonstration as a pretext
to attack Israelis and divert attention from the group’s poor
governance of the strip.
Gaza’s economy is flatlining
and a dispute between Hamas
and the Palestinian Authority
is exacerbating tensions.
The last round of Israeli-Palestinian peace talks collapsed
in 2014 and Palestinian factions
have refused to engage in an
expected White House peace
plan as they perceive it will be
favorable to Israel.
Ahead of Friday’s demonstration, the United Nations
said Israeli forces should show
“maximum restraint” and
called on organizers not to put
women and children in danger.
The White House representative to Israeli-Palestinian ne-
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gotiations, Jason Greenblatt,
urged protesters to march
peacefully, abstain from violence and not approach the
fence.
Retired policeman Khames
al-Zaem said Palestinians were
“fed up” with an Israeli blockade of Gaza and no prospects
for a peace agreement after 70
years of conflict. “To die a
martyr is much better than
dying in hospital bed,” said
Mr. Zaem, 67 years old.
Israel controls access and
goods entering the strip to
stop Hamas from arming to attack Israelis. Egypt also shares
a border with Gaza and only
infrequently opens the crossing from the strip into Egyptian territory.
Israeli army officials have
disputed the number of injuries
reported by Gazan authorities
last week and questioned the
authenticity of videos posted
online that purported to show
unarmed protesters being shot.
.
A8 | Saturday/Sunday, April 7 - 8, 2018
THE WALL STREET JOURNAL.
* *****
STOCKS
Continued from Page One
tion is willing to go with its protectionist agenda has become a
driving force behind the stock
market’s gyrations for more
than a month.
Those concerns deepened
Friday after Chinese Commerce Ministry spokesman
Gao Feng acknowledged the
two governments were now in
a battle and described President Donald Trump’s consideration of penalties on an additional $100 billion in Chinese
goods as “extremely wrong.”
Investors worry the tit-fortat responses between the U.S.
and China could translate into
more severe and farther-reaching sanctions that pressure
American companies and raise
prices for consumers.
Investors say an escalation
could crimp the global economic
growth engine that has acted as
a key pillar for the latest leg of
the stock-market rally.
Several Trump administration officials, including Larry
Kudlow, head of the White
House National Economic Coun-
cil, Treasury Secretary Steven
Mnuchin and White House press
secretary Sarah Huckabee Sanders, tried to allay investors’ concerns about a trade conflict to
little avail.
Mr. Mnuchin, speaking on
CNBC, said it would take time
for the announced and potential
U.S. tariffs to take effect, and
meanwhile, “we’ll continue to
have discussions. But there is
the potential of a trade war.”
572
Number of points the Dow Jones
Industrial Average fell Friday
That last comment appeared
to send the market sliding. The
Dow fell as much as 767 points
in the late afternoon before paring its decline to 572.46 points,
or 2.3%, to 23932.76.
Ms. Sanders, meanwhile,
said later Friday that, “this is
something that China has created and President Trump is
trying to fix it.”
Federal Reserve Chairman
Jerome Powell, who reiterated
the central bank’s intent to proceed with a slow, steady path of
rising interest rates, added Friday that “tariffs can push up
prices,” but went on to say that
it is too early to predict what
would be the full economic impact of a trade war with China.
The growing uncertainty
over a trade war and what that
means for businesses across the
country prompted the stock
market’s most nervous investors
to sell Friday, said Kenny Polcari, managing director at broker-dealer O’Neil Securities.
“It could get uglier over the
weekend, and some are getting
out because it could go either
way,” said Mr. Polcari.
He added that trading volumes were light, suggesting the
selling is being driven more by
smaller traders and investors
rather than big money managers. “If [the administration]
calms the rhetoric down over
the weekend, then you’ll likely
see the market rally right back
Monday,” he said.
The S&P 500 declined 58.37
points, or 2.2%, to 2604.47,
while the Nasdaq Composite
slid 161.44 points, or 2.3%, to
6915.11. For the week, the Dow
QILAI SHEN/BLOOMBERG
IN DEPTH
Steel wire in Shanghai. China vowed Friday to fight U.S. trade moves.
dropped 0.7%, the S&P 500 fell
1.4% and the Nasdaq declined
2.1%. The S&P 500 is now off
2.6% for the year and down 9.3%
from its late January peak.
Investors moved into assets
that tend to hold up better during times of uncertainty, with
so-called haven assets such as
bonds and gold rising. “There’s
genuine fear that this thing with
China is not going to go well,”
said Jeff Lancaster, a principal
of Bingham Osborn & Scarborough, an advisory firm that
manages $4.2 billion.
Shares of Boeing, which has
been cited by analysts as a bellwether to gauge investors’ reaction to trade-sensitive stocks,
fell 3.1%. Heavy machinery manufacturers Caterpillar and Deere
& Co. dropped 3.5% and 3.9%.
Financial firms also weighed
Bridging a divide
Mr. Lighthizer managed to
bridge a trade divide among Mr.
Trump’s warring factions.
To so-called nationalists like
trade aide Peter Navarro, who
was itching to take on China,
Mr. Lighthizer was a China
hawk. Mr. Navarro is mainly an
idea man, who has seen his role
as making sure the White House
carries out the president’s campaign pledge to stop China from
“ripping us left and right.” Mr.
Lighthizer runs a trade agency,
plots strategy and carries it out.
To so-called globalists such
as former National Economic
Council Director Gary Cohn,
who worried about the impact
of trade fights on markets, Mr.
Lighthizer was the skilled attorney who understood how Wash-
U.S. Trade Representative Robert Lighthizer with President Trump; the aide has had a key role in shaping policy concerning China.
Road to U.S.-China
Standoff on Trade
2000 U.S. grants China normalized trade relations.
and Xi meet at Mar-a-Lago,
start Comprehensive Economic
Dialogue.
Growing Imbalance
2018 U.S. imposes steel and
aluminum tariffs; targets $50
billion of Chinese imports for
tariffs. China threatens tariffs
on similar amount of U.S.
goods. Trump weighs tariffs on
additional $100 billion of goods.
$400 billion
2001 China enters the WTO.
ASSOCIATED PRESS (3)
Continued from Page One
zer. It marked the start of the
most dramatic and high-risk effort in decades to force the
world’s second largest economy
to change its behavior, culminating this week in an order threatening tariffs on $50 billion of
Chinese imports, a move that
also had Mr. Lighthizer’s imprint on it.
After China threatened tariffs
on an equal amount of imports
from the U.S., Mr. Trump on
Thursday called that “unfair retaliation” and said he might put
tariffs on a further $100 billion
of Chinese imports. China’s
Commerce Ministry said on Friday Beijing was ready to “hit
back forcefully.”
Today, Mr. Lighthizer is exchanging letters with China’s senior economic envoy on measures Beijing could take to head
off a trade war. Negotiations are
likely to stretch over many
months—an ambiguity that
could rattle financial markets
and lift prices on goods earmarked for tariffs.
“Trump and Lighthizer are
like-minded,” said William Reinsch, a former trade official
now at the Center for Strategic
and International Studies.
“There is a negotiating strategy
of bullying, intimidation, and
threats to soften up [the adversary]. Then, maybe make a
deal.”
Mr. Lighthizer’s brother, Jim
Lighthizer, puts it another way.
“His approach is direct; he
doesn’t spend a lot of time on
nuance.” Robert Lighthizer declined requests for comment.
Many U.S. businesses say
they are fed up with what they
view as unfair Chinese subsidies
to local companies, and strongarm tactics that make them
hand over technology to Chinese partners. Still, they worry
U.S. threats of tariffs could
backfire and leave them vulnerable to retaliation.
Early in the Trump administration, Commerce Secretary
Wilbur Ross was expected to
lead China economic policy. His
star dimmed when the president
dismissed an early package of
deals Mr. Ross negotiated with
Beijing as little more than a repackaging of past offers, say
White House officials. “Shut it
down,” Mr. Trump told Mr. Ross
in July when he stripped Mr.
Ross of his China role, according
to senior administration officials.
Mr. Ross continues to work
on China issues, including advising Mr. Lighthizer on which imports to target for tariffs, a
Commerce official said.
CAROLYN KASTER/ASSOCIATED PRESS
TRADE
1989 Tiananmen Square massacre; U.S.-Chinese relations
sour.
2006 The U.S. and China hold
first Strategic Economic Dialogue (SED).
1992 China under Deng Xiaoping recommits to marketbased reforms.
2009 SED talks broadened.
1999 U.S. cuts a deal with
China to back its entry into the
World Trade Organization.
ington worked.
To Mr. Trump, Mr. Lighthizer
was a kindred spirit on trade—
and one who shuns the limelight. The two men, who have a
similar chip-on-the-shoulder
sense of humor, bonded. Mr.
Lighthizer caught rides to his
Florida home on Air Force One.
Mr. Trump summons him regularly to the Oval Office to discuss trade matters, administration officials say.
“Lighthizer has everyone’s
trust,” said Kevin Hassett, the
White House chief economist.
Mr. Lighthizer’s brother
added: “Bob recognizes there’s
one king and he ain’t it.”
As an attorney at Skadden,
Arps, Slate, Meagher and Flom
LLP, he represented steel-industry clients who believed they’d
been hurt by subsidized imported Chinese goods. In op-ed
columns dating to 1997, Mr.
Lighthizer opposed the entry of
China into the World Trade Organization under the terms being negotiated.
Mr. Lighthizer’s role is a
change from recent administrations where China experts, such
as Treasury Secretary Henry
Paulson in the George W. Bush
administration, handled the
China economic portfolio. Mr.
Lighthizer is a skilled international trade litigator, more in
the mold of former U.S. Trade
Representative
Charlene
Barshefsky.
The U.S. trade deficit with China
has steadily worsened.
300
200
100
2013 Sunnylands summit between Presidents Barack
Obama and Xi Jinping.
0
1990
2017 President Donald Trump
2000
’10
Source: Commerce Department
THE WALL STREET JOURNAL.
By the time he took office in
May, the administration was
fighting over whether to impose
tariffs on steel and aluminum
imports globally. China policy
was on the back burner.
While Mr. Lighthizer believed
the metal glut was due to Chinese excess production, he
thought a fight at that point
would be self-defeating because
the focus would be on U.S. tariffs, not Chinese trade and investment practices. Assessing
tariffs on all steel exporters
would paint the U.S. as a villain
instead of China. Mr. Lighthizer
worked quietly with Mr. Cohn
and others to get the issue set
aside in favor of other priorities.
U.S. trade representatives often regard themselves as lawyers for U.S. exporters, trying to
open up new markets. Mr. Lighthizer saw things differently,
viewing big U.S. companies as
job outsourcers that sometimes
had to be reined in.
Missile Man
At a September meeting with
about 100 CEOs organized by
the Business Roundtable, he
said he understood they had to
maximize profits, which sometimes meant exporting jobs.
“My job is different,” he told the
group, according to participants.
“My job is to represent the
American workers. We’re going
to disagree.”
Mr. Lighthizer, 70 years old,
grew up in the Lake Erie port
city of Ashtabula, Ohio, which
was battered by imports. He
sees himself as blue-collar even
though he is a doctor’s son who
once raced around West Virginia in sports cars and has financial assets worth between
$10 million and $38 million, according to government filings.
As with his boss, bluntness is
his calling card. In the
mid-1980s, as a U.S. Trade Representative official who negotiated with Japan, he once grew
so frustrated he took a Japanese
proposal, turned it into a paper
Lighthizer is letting
China know what
steps it could take to
avert a trade war.
airplane and floated it back at
the Japanese negotiators as a
joke. In Japan, he became
known as “the missile man.”
In a Senate hearing last
month, when Democratic Sen.
Maria Cantwell of Washington
said his China plans could hurt
U.S. aircraft makers, he dismissed her concerns as “nonsense.”
As the U.S. moved toward
confrontation with China last
fall, after the August Roosevelt
Room session, Mr. Lighthizer
worked to make sure the administration was united. Previously,
the U.S. had often balked at confronting China out of fear a
fight would tank the global
economy and make China less
willing to help on national-security issues.
Defense chief Jim Mattis,
though, backed a tough approach because he was concerned China was illicitly obtaining U.S. technology and
could gain a military edge, say
people familiar with his thinking. Others in the national-security agencies were tired of what
they felt were unmet Chinese
promises on Korea and other security issues.
Mr. Cohn was as fed up with
Beijing as Mr. Lighthizer, say officials. As a president of Goldman, Mr. Cohn had lobbied to
do business unimpeded in China
and didn’t get the approvals
he sought.
At the end of February, China
sent its chief economic envoy,
Liu He, to Washington to try to
restart negotiations. He found a
frosty welcome. The Chinese
embassy had requested 40 visas
to bring a full entourage. He got
just a handful. Mr. Liu also
couldn’t get any time with Mr.
Trump, instead meeting with
Mr. Lighthizer, Mr. Cohn and
Treasury Secretary Steven
Mnuchin. They delivered a sim-
heavily on major indexes after
their stocks were hurt by stronger bond prices, which rose after the latest trade salvos.
Higher bond prices and lower
yields tend to narrow the gap
between short- and long-dated
Treasury notes and crimp lenders’ profits.
Shares of Goldman Sachs
Group fell 2.3%, while the KBW
Nasdaq Bank Index of large U.S.
lenders slid 2.7%.
The yield on the benchmark
10-year U.S. Treasury note fell
to 2.779% from 2.830% on
Thursday. Yields move inversely to prices.
Meanwhile, the latest jobs
report showed that wages grew
as expected from a year earlier,
with average hourly earnings
rising 2.7% in March. That
eased worries among some investors that inflation had been
growing faster than expected
and that the Fed would hasten
its pace of interest-rate hikes to
keep the economy from overheating.
“This should help moderate
investors’ expectations for the
[Federal Reserve] getting ahead
of itself,” said Doug Coté, Voya
Investment Management’s chief
market strategist.
ple message: The U.S. isn’t going
to get “tapped around.”
The U.S. wanted substantial
changes, which included cutting
the tariff China imposes on auto
imports from 25% to something
closer to the U.S. tariff of
2.5%. The U.S. also wanted a
$100 billion reduction of its
$375 billion annual merchandise
trade deficit with China. To
punctuate those demands, the
administration planned to
threaten tariffs.
One more obstacle needed to
be cleared away. President
Trump, frustrated that the steeltariff matter had been indefinitely delayed, was sympathetic
to pitches by Messrs. Navarro
and Ross that he should finally
move on the issue. In early
March, Mr. Trump said he
would impose 25% tariffs on
steel and 10% tariffs on aluminum from any exporting nation.
The international response
threatened to drown out the
China initiative as U.S. allies
complained they were unfairly
targeted.
How to proceed
On Tuesday evening, March
20, senior officials gathered
again in the Roosevelt Room to
decide how to proceed with the
tariffs scheduled to go into effect in three days. Mr. Navarro,
the trade adviser, argued tariffs
should be imposed across the
board as the president threatened, say officials. That would
increase U.S. leverage with
steel-exporting nations, which
could be expected to offer concessions to avoid tariffs, he argued.
Mr. Lighthizer, aligned this
time with Mr. Ross, pressed for
an alternative course. Grant
nearly all nations except China
temporary exclusions from the
tariffs, they proposed, according
to participants, but then limit
their exports through quotas.
That would make the U.S. seem
more reasonable in steel negotiations and help form a coalition
against China.
The group produced a memo
in which the different views
were articulated. Mr. Trump
backed Mr. Lighthizer’s side.
With the steel issue defused,
at least temporarily, Mr. Trump
announced on March 22 the U.S.
would threaten tariffs on Chinese imports. He thanked Mr.
Lighthizer for his help and invited him to say a few words.
“This is an extremely important action,” Mr. Lighthizer said,
“very significant and very important for the future of the
country, really, across industries.”
Over coming months, the
ability of the U.S. to maintain
pressure on China will depend
on factors including the reaction
of markets, opposition by U.S.
industries and farmers, and retaliation by China against U.S.
companies. Chinese leaders say
they are confident they would
prevail in a trade war, say U.S.
individuals who have met with
them recently, and chalk up U.S.
threats to Mr. Trump’s midterm
congressional electioneering.
Jorge Guajardo, a former
Mexican ambassador to China
and now a Washington consultant, has seen up close how Beijing can pressure companies and
wear down governments. “The
big question is, ‘Will the U.S.
blink?’” he said. “Or will they
stay the course so China is
forced to understand there is a
new way of doing business.”
—Lingling Wei contributed to
this article.
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | A9
* * * * * *
WORLD NEWS
U.S. Weighs Steps China Set to Counter Tariffs
To Aid Domestic
Car Manufacturers
BY TIMOTHY PUKO
The Trump administration
is pursuing ways to protect
domestic vehicle manufacturing by forcing imported cars
to meet stricter environmental
rules, according to senior administration and industry officials, a move that likely would
make imports more expensive.
The cost of meeting the
stiffer
import
standards
would, at least in part, be
passed along to U.S. consumers. This style of “nontariff
barrier”—a protectionist stratagem the U.S. has long condemned in other countries—is
3.5%
German auto maker Volkswagen’s
share of the U.S. market
designed to reduce the relative
cost of cars manufactured in
the U.S., the officials said.
President Donald Trump has
asked the Environmental Protection Agency and several
other agencies, including the
Commerce and Transportation
departments, to pursue plans to
use such laws as the Clean Air
Act to subject cars made overseas to strict emissions-standards testing and reviews when
entering the U.S. The rules
could effectively require more
expensive technology on some
foreign cars or subject those
cars to more expensive hurdles.
Either option would likely
raise the costs for foreign cars
sold in the U.S., making domestically produced cars cheaper by
comparison. This effect of raising prices on consumers is common to most nontariff barriers.
The initiative remains in the
planning stages and still faces
hurdles to implementation. EPA
officials are working now to
craft a legal justification, given
that any proposal is expected
to draw lawsuits. Some in the
administration see the idea as
too radical, and the considerable legal challenges have already delayed the plan. The
White House didn’t respond to
a request to comment.
Behind some of the administration’s thinking is a recent
scandal at Volkswagen AG,
which has 3.5% of the U.S.
market. The German auto giant admitted to cheating on
meeting standards limiting air
pollution in vehicles with diesel engines. The EPA is exploring whether that scandal gives
it legal justification under the
Clean Air Act to set tougher
rules, though it is also pursuing other alternatives that
would have a broader impact.
“Reports that the president
has requested input from his
cabinet on possible nontariff
barriers for vehicle imports to
the U.S. is a bad idea and a
pretext for protectionism,”
said John Bozzella, head of
Washington lobbying group
Global Automakers and spokesman for Here for America, a
coalition of companies including Volkswagen, BMW AG and
Daimler AG’s Mercedes-Benz.
The EPA this week moved to
ease emissions standards for vehicles sold in the U.S. spanning
all auto makers, so additional
strictures for imported cars and
trucks could put those manufacturers at a disadvantage.
While the U.S. would like
the plan to apply to as many
countries as possible, it isn’t
clear if it would affect cars
produced in Canada and Mexico, because they are member
countries of the North American Free Trade Agreement.
—William Mauldin, Chester
Dawson and Mike Spector
contributed to this article.
BEIJING—China said it
would retaliate forcefully if the
U.S. imposed newly threatened
tariffs and ruled out negotiations while Washington is escalating the pressure on Beijing
over trade.
President Donald Trump
said late Thursday that he was
considering penalties on an additional $100 billion in Chinese
goods. Those penalties would
come on top of proposed tariffs
on $50 billion in imports from
China that Washington unveiled last week. The Trump
administration aims to rebalance trade that last year favored China by $375 billion.
At a briefing with reporters
Friday night, Chinese Commerce Ministry spokesman Gao
Feng called the U.S. move “extremely wrong” and acknowledged the two governments
were now in a battle.
“China is fully prepared to
hit back forcefully and without
hesitation,” Mr. Gao said. He
said China has put in place “detailed countermeasures” and
that those measures “don’t exclude any options.” Mr. Gao
didn’t elaborate.
He denied that Beijing and
Washington were engaged in
negotiations and said they haven’t been “for a period of
time,” despite remarks by some
U.S. officials that both sides
were trying to resolve the dispute. “Under such circumstances, it’s even more unlikely
for the two sides to engage in
any kind of negotiations,” Mr.
Gao said.
Beijing’s apparent refusal to
negotiate marks a new phase in
weeks of rising tensions during
which China largely reacted
with measured calm to Trump
administration moves and kept
open the door for dialogue.
Economists said the Trump
administration’s latest action
could leave the Chinese government facing options beyond
tariffs to retaliate.
Beijing has responded in
kind to the U.S. actions with
penalties of a similar value. But
if the Trump administration
VCG/GETTY IMAGES
BY LINGLING WEI
Beijing said it would respond forcefully to further U.S. tariffs. Above, a cargo ship in Qingdao, China.
Ready to Respond
China said it will retaliate if the U.S. imposes additional tariffs on
$100 billion of goods.
Subject to new tariffs
Newly threatened tariffs
Not subject
Exports to China
from U.S.
Imports from China
to U.S.
0
200
400
$600 billion
Note: Based on 2017 trade figures
Sources: U.S. Census Bureau, Peterson Institute for
International Economics, China's customs administration
pursues tariffs on an additional
$100 billion in goods, the new
$150 billion total would exceed
the roughly $130 billion in
goods China imports from the
U.S. That would force Beijing to
seek other options.
Such measures, economists
said, could include stepped-up
regulation of American companies operating in China and using the threat of a trade war to
rattle the U.S.’s larger and
more important financial markets, compared with China’s
smaller, less globally connected
ones.
“China shouldn’t dance to
the U.S.’s tune,” said Mei Xinyu,
a researcher with the govern-
THE WALL STREET JOURNAL.
ment-backed China Academy of
International Trade and Economic Cooperation. He pointed
to the U.S. financial-services
sector as one vulnerability.
Beyond the threats of trade
penalties, China has actually
imposed tariffs on $3 billion
worth of American farm
goods and other products, answering similar levies placed
by the U.S. on Chinese steel
and aluminum.
“There’s every prospect that
U.S. firms could be leaned on,
face additional and aggravating
regulation, or be sanctioned
somehow,” said George Magnus, an associate at the University of Oxford’s China Center
and a former chief economist
for UBS. And going after American companies, he said, would
further anger the White House
and “pretty soon we’re approaching meltdown.”
Ha Jiming, a former economist with Goldman Sachs and
now at China Finance 40 Forum, a Beijing think tank, said
Beijing might have few options
but to reduce holdings of U.S.
Treasurys. That could raise
borrowing costs for the U.S.,
but other economists have said
it would also increase the value
of the yuan, making Chinese
exports less competitive.
Senior Chinese officials have
offered assurances that Beijing
will continue to follow marketbased principles in managing
its foreign-exchange stockpile.
“China is a responsible investor
in global capital markets,” Chinese Vice Finance Minister Zhu
Guangyao
told
reporters
Wednesday.
Mr. Mei, the Chinese researcher, said China is considering other options because its
response has to match the
Trump
administration’s
threats. “This is a bet on whose
stance is tougher,” he said.
—Lin Zhu
contributed to this article.
ANGELA KRILE (2)
FROM PAGE ONE
Co-workers Julie Theado (left) and Angela Krile (right) showed up to work in the same outfit.
OUTFIT
Continued from Page One
its website, says it is “an online
styling service that delivers a
truly personalized shopping experience, just for you.”
Ms. Krile and Ms. Theado’s
experience isn’t unique. In conference rooms, courtrooms and
offices, men and women who
use the service say they are seeing fashion doppelgängers.
Ashley Freligh recalls the day
a co-worker “came waltzing
through,” the Washington, D.C.,
commercial real estate office
where she worked, wearing the
same blue-and-white striped,
sleeveless, V-neck top she had
bought from Stitch Fix. Spotting
the co-worker at the office
kitchen, Ms. Freligh asked if she
used Stitch Fix. “She replied
that she received the shirt from
there as well.” From that moment on, Ms. Freligh devised a
calendar system to guess when
her colleague might wear the
outfit and when she should
wear it.
Within days, she noticed another woman wearing the same
top on the subway.
The twinning experience isn’t
necessarily negative. While on
vacation in Billings, Mont., last
summer, Stephen Barr recalls
having a beer at a bar when he
spotted a man wearing the same
patterned, gray button-down,
short-sleeve shirt that he had
bought from Stitch Fix and was
then wearing. Mr. Barr, a financial software product manager
from Philadelphia, saw the episode as a positive. “It was confirmation other guys are buying
the same kind of clothes that I
am, so I can’t be completely going down the wrong path updating my wardrobe,” he said.
With 2.5 million customers
and more than a thousand
brands, Stitch Fix says the likelihood of any two people getting
the same “fix”—or set of five
items—is “nearly zero,” according to its chief algorithms officer, Eric Colson. In 2014, Mr.
Colson conducted data analysis
using a mathematical formula
that concluded the probability
of two sets with the same five
items, “even after a million
tries” was “extremely small.”
However, the chance of two
or more customers getting one
shared item out of five is
“small” versus “extremely
small” for five out of five, the
company says.
Diana Suber, a lawyer based
in Atlanta, saw two women in
her office building wearing the
same navy dress with lace overlay she owned within days of
one another. “When I saw one
woman, you think it might have
been just a coincidence,” she
said. “But when I saw two
women, it made me think you’re
either selecting the same dress
for multiple people in the same
market or we all have the same
taste. It was just kind of weird.”
She decided to never wear the
dress to work again.
Mr. Colson, of Stitch Fix, concedes that “social pressure
would explain why some people
might get the same thing,” say,
if a certain style is trending. Users of the service can also provide Stitch Fix stylists with Pinterest boards and other socialmedia images as guidance.
If two clients in the same ZIP
Code happen to have similar
style profiles, “there’s nothing
to check to make sure we don’t
send two people in the same
area the same thing,” he said.
That’s partly because “we don’t
want one person to limit the
next person,” but also because
“it happens so rarely that we’re
not concerned about it.”
When Andrea L. Myers
started a new public-relations
job in St. Louis, she wore a favorite shirt that she had bought
from Stitch Fix when she lived
in Claremore, Okla. She found a
co-worker had the same shirt.
On another occasion, she
wore a different shirt—and a
different co-worker had that
one. “Two people on my team
said they had the same shirt,”
she said. Ms. Myers confirmed
their shirts had also come from
Stitch Fix.
She says she could understand the duplication. “Our
styles are somewhat similar.”
But her fashion choice made Ms.
Myers
start
questioning
whether her taste was off.
“They are both younger than
me,” the 39-year-old says. “I
don’t know what that says
about me.”
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A10 | Saturday/Sunday, April 7 - 8, 2018
THE WALL STREET JOURNAL.
* ***
OBITUARIES
A N N A C H E N N A U LT
1923 — 2018
AMSALE ABERRA
1954 — 2018
Bridge Between East, West
Wasn’t Always Appreciated
Exile Opened the Way
For Dressmaker to Stars
BY JAMES R. HAGERTY
A
nna Chan and Gen. Claire
Chennault were an unlikely
match. When they met in
World War II, she was a fledgling
Chinese journalist. He was 30
years older and commander of the
U.S. 14th Air Force helping Chinese
troops fight Japanese invaders.
She was single. He was married,
with eight children back home in
the U.S. She noticed his “strongjawed face” and “steady dark
eyes,” she wrote in a memoir. A
few years later, newly divorced, he
returned to China and proposed
marriage. She lent him $500 so he
could afford the $1,500 engagement ring she had picked out.
He called her “Little One” and
urged her to preserve her slim figure. She wrote that their marriage
was full of joy, though she fretted
about his chain smoking. When he
died of lung cancer in 1958, Mrs.
Chennault and their two daughters
had to make a new life.
She moved to Washington and
eventually made a living by helping
U.S. companies gain access to
Asian markets. She also wrote
more than 40 books and served as
an informal intermediary between
Asian leaders and American politicians. She raised hundreds of thousands of dollars for Republicans.
She never achieved her aim of
becoming a high-ranking representative of her adopted country. Instead, she was fobbed off with appointments to advisory
committees. President Lyndon
Johnson once referred to her as a
“good-looking girl.” Newspapers
described her as a “Dragon Lady.”
She died March 30 at age 94 in
her penthouse home in the Watergate complex in Washington.
“She knew everybody who mattered,” said Catherine Forslund, a
professor at Rockford University
who wrote a biography of Mrs.
Chennault. Senators and other important people trooped to her Watergate home for parties. Yet she
knew her influence was limited.
“People who make national policy are all white men,” she told a
reporter in 1978.
C
han Hsiang-mei was born
June 25, 1923, in Beijing, the
second of six daughters, with
no brothers. Her father was an Oxford-educated professor of law. Her
mother had been to a French finishing school. Her grandfather Liao Fengshu was a poet and
China’s general consul in Cuba.
As Japanese troops overran
China in 1937, her family fled to
Hong Kong, where Anna enrolled in
a Roman Catholic school. After the
Japanese invaded Hong Kong in
late 1941, she and her sisters
moved back to the mainland. She
earned a university degree and
joined a Chinese news agency.
After her husband’s death, she
worked for a linguistics institute at
Georgetown University and was a
vice president of Flying Tiger Line,
helping the cargo airline secure
landing rights in Asia. (The cargo
carrier was formed in the
mid-1940s by former pilots of the
Flying Tigers, a volunteer squadron
led by Gen. Chennault.)
In her political life, she was a
fierce opponent of communism
who called the Mao regime “masters of Chinese slavery.”
In 1968, when he was running
for president, Richard Nixon encouraged her to serve as a secret
channel for communications with
the government of South Vietnamese President Nguyen Van
Thieu. That led to accusations,
backed by wiretap evidence, that
Mr. Nixon used her to encourage
Mr. Thieu to stall on peace talks,
dimming prospects for a breakthrough that might have helped
Democratic nominee Hubert Humphrey win the election.
Prof. Forslund said she doubted
Mrs. Chennault’s intervention
changed Mr. Thieu. South Vietnamese leaders, seeing Mr. Nixon as
the candidate who would support
them more firmly, “were already
predisposed to support Nixon and
she just encouraged them in that
belief,” Prof. Forslund said.
In 1981, however, she made her
first trip to China since the 1949
Chinese takeover and joined Sen.
Ted Stevens in a meeting with
Deng Xiaoping. Mrs. Chennault
later recalled that the Chinese
leader wanted her, not Mr. Stevens,
to sit next to him and quipped:
“There are 100 senators but there
is only one Anna Chennault.”
She is survived by two daughters, two grandsons and three sisters. She never remarried and kept
a portrait of the general on an easel near her dinner table. In a 1962
memoir, she wrote, “My love for
him was an unchanging love, high
and deep, free and faithful, strong
as death.”
Read a collection of in-depth
profiles at WSJ.com/Obituaries
A
msale Aberra was a foreign
student studying commercial art in Vermont in 1974
when longtime Emperor Haile Selassie, the leader of her homeland
of Ethiopia, was toppled from
power. In the ensuing turmoil, her
father, a government official, was
imprisoned.
Cut off from financial support,
Ms. Aberra took on menial jobs.
One was at a Jack in the Box hamburger stand, where she was
swiftly fired after managers found
she was so shy and soft-spoken
that the chefs couldn’t hear the
orders she was supposed to shout
to them. Ms. Aberra found other
jobs and eventually put herself
through the Fashion Institute of
Technology in New York.
When she married Clarence
O’Neill Brown in 1985, she
couldn’t find a wedding dress in
the simple and elegant style she
preferred. So she made one for
herself. That sparked a decision to
create her own company, known
as Amsale, to design wedding
gowns and bridesmaid dresses.
Her celebrity clients have included Kim Basinger and Halle
Berry. The dresses are sold at a
company-owned retail store on
Madison Avenue in New York and
at scores of other retailers, including Nordstrom and Neiman
Marcus.
Ms. Aberra died April 1 of uterine cancer at a hospital in New
York. She was 64.
—James R. Hagerty
JA M ES H O L L A N D
1925 — 2017
Chemotherapy Pioneer
Lacked Surgical Skill
W
hen the precocious
James Holland enrolled
in Princeton University
at 16, he was torn between law
and medicine. Then, in a biology
course, he found himself fascinated by wriggling paramecia.
That set him on course for Columbia University’s medical
school, where he discovered
something else: He lacked the
dexterity for surgery and couldn’t
tie a knot with one hand. He
proved far more adept as an oncologist, professor and researcher
who helped pioneer the use of
chemotherapy to treat cancer in
the 1950s and beyond.
When he got his start at Francis Delafield Hospital in New York
in the early 1950s, chemotherapy
was in its infancy. Little was
known about side effects and
likely success rates. In the circumstances, using chemotherapy
risked violating the physician’s
oath of “first, do no harm.”
That didn’t deter Dr. Holland.
“If you do no harm then you do
no harm to the cancer either,” he
told the New York Times in 1986,
when he served as chief of oncology at Mount Sinai Hospital in
New York.
Dr. Holland died of respiratory
failure March 22 at his home in
Scarsdale, N.Y. He was 92. His
wife, Jimmie Holland, specialized
in psychological treatment for the
emotional distress of cancer patients. She died in December.
—James R. Hagerty
WORLD NEWS
BY PAUL HANNON
AND TOM FAIRLESS
Growth in the eurozone
economy is slowing down,
complicating the European
Central Bank’s deliberations
on how quickly to remove its
stimulus measures and start
raising interest rates.
The $10 trillion eurozone
economy entered 2018 on a
high, having chalked up its
strongest year in a decade in
2017, with growth outpacing
the U.S. But a series of economic releases in recent weeks
have been weaker than expected, suggesting that while
growth will continue in 2018,
it won’t be as strong.
Signs of weaker growth
support ECB President Mario
Draghi’s view that the central
bank needs to move cautiously
as its phases out its giant
bond-buying program. Other
ECB officials, notably German
Bundesbank President Jens
Weidmann, are eager to start
raising interest rates soon.
The eurozone’s slowdown
might not be all that sharp.
Most indicators still point to
continuing growth, just at a
slower pace, rather than a
downturn. Still, it is disappointing for a region that is
still healing from the economic scars of its long financial crisis, including still-high
unemployment and debts in
some countries.
The latest, unexpected sign
of weakness came from Germany, Europe’s exporting powerhouse. Figures released by
the country’s economics ministry recorded a 1.6% drop in
industrial output in February
compared with January. That
was a big surprise, since economists surveyed last week by
The Wall Street Journal were
expecting an increase of 0.3%.
Many economists believe
the bloc can grow at a steady
rate of just over 1% without
overheating. Thus last year’s
2.3% expansion was very
strong, and some moderation
this year might be only natural.
Gang Violence Is Blamed
For Rise in London Murders
BY JASON DOUGLAS
LONDON—A series of stabbings has put the number of
murders in London this year
on a par with New York, with
police and lawmakers blaming
the surge on drugs and gangrelated violence.
The spate has increased
pressure on Prime Minister
Theresa May to respond, with
the issue likely to feature heavily in elections to local government councils in London May 3.
A group of more than 40
opposition lawmakers, many
of them representing London
constituencies, on Friday
wrote to Mrs. May and Home
Secretary Amber Rudd urging
tougher action and more funding for law enforcement.
Police said there have been
53 murders in the British capital in the year through April 5,
16 more than in the first four
months of 2017.
In New York through April
1, there were 59 homicides, according to New York City Police Department figures, 12%
fewer than during the period a
year earlier.
Violent crime in London has
historically been much lower
than in New York, which both
have a population of 8.6 million. In 2017, there were 292
murders in New York and 116
in London, excluding 13 victims of terrorist attacks.
Unusually for the U.K.,
where gun-control laws are
strict, seven of the dead so far
this year were shot. There
were only 10 fatal shootings in
all of 2017.
ILYAS ISMAIL/AGENCE FRANCE-PRESSE/GETTY IMAGES
ECB Faces a Test
As Growth Slows
Indonesian rescuers on Thursday flanked two men, front-center, who were part of a group of Rohingya lost at sea for nearly three weeks.
Refugees Feared Stranded at Sea
BY JON EMONT
AND ANITA RACHMAN
The United Nations’ refugee
agency warned that more
boats carrying Rohingya refugees may be stranded in the
Andaman Sea on the eve of
the dangerous monsoon season, ratcheting up concern for
the Muslim minority following
the Myanmar military’s expulsion of hundreds of thousands
from the country.
The U.N.’s alarm was
sounded the same day that an
Indonesian search-and-rescue
mission found a boat with five
starving Rohingya on board
off the coast of Aceh province
off the northern tip of Sumatra island, part of the long
route the Rohingya use to flee
to Myanmar to other parts of
Southeast Asia.
The survivors had run out
of food and water and had
been adrift for about 20 days
on a boat lacking a motor, Indonesian authorities said. Ac-
cording to accounts from survivors
relayed
by
the
Indonesians, five Rohingya
had earlier died aboard the
vessel and their remains were
pushed overboard.
The U.N. High Commissioner for Refugees said in a
statement that it had uncon-
The seaborne exodus
of Rohingya comes as
the monsoon season
is due to begin.
firmed reports that several
other boats with more Rohingya aboard were at sea. “We
are concerned for their safety
and hope that they will be rescued,” the statement said.
An exodus by sea of Rohingya has been feared since August, when the military in Buddhist-majority
Myanmar
launched a campaign that has
driven some 700,000 Rohingya
across the border to Bangladesh
in response to what the government said were terrorist attacks. Some 200,000 Rohingya
remain in Myanmar, many of
them eking out a precarious existence in camps following earlier rounds of violence.
The seaborne exodus had
failed to materialize until this
week, however, but now comes
as the monsoon season in the
Bay of Bengal, accompanied by
some of the world’s most ferocious cyclones, is due to begin
this month.
In 2015, tens of thousands
of Rohingya on rickety boats
fled Myanmar to Thailand, Indonesia and Malaysia. Hundreds died at sea due to a
combination of lack of supplies, stormy seas and unseaworthy vessels. Since then, a
crackdown on human trafficking by nations along the route
has largely prevented more
mass sailings.
The UNHCR said in a recent, separate statement that
the number of boats leaving
Myanmar this year has been
small in part because Rohingya are more aware of the
danger of making the trip.
On Tuesday, a boat carrying
56 Rohingya came ashore
safely in Malaysia, the first
confirmed boat to have left
Myanmar for elsewhere in
Southeast Asia this year.
There were no reported casualties.
There are signs that more
Rohingya may attempt to flee
in the next few weeks before
the weather door slams shut.
Myanmar regards the Rohingya as illegal migrants from
Bangladesh, though many of
them have lived in Myanmar
for generations. The government denies them citizenship.
The U.N. has said that the recent campaign against them
bears the hallmarks of genocide. Myanmar’s government
denies it.
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | A11
* * * *
OPINION
The Dark Side of the Enlightenment
By Yoram Hazony
Today’s advocates oversell
the benefits of unfettered
reason. They dismiss the
contributions of tradition,
religion and nationalism
to human progress.
the late 18th century,” when philosophers “replaced dogma, tradition
and authority with reason, debate
and institutions of truth-seeking.”
Mr. Brooks concurs, assuring his
readers that “the Enlightenment
project gave us the modern world.”
So give thanks for “thinkers like
John Locke and Immanuel Kant
who argued that people should
stop deferring blindly to authority”
and instead “think things through
from the ground up.”
As Mr. Pinker sums it up: “Progress is a gift of the ideals of the
Enlightenment, and will continue
to the extent that we rededicate
ourselves to those ideals.”
Very little of this is true. Consider the claim that the U.S. Constitution was a product of Enlightenment thought, derived by
throwing out the political traditions of the past and applying unfettered human reason. Disproving
this idea requires only reading earlier writers on the English constitution. The widely circulated 15thcentury treatise “In Praise of the
Laws of England,” written by the
jurist John Fortescue, clearly explains due process and the theory
now called “checks and balances.”
The English constitution, Fortescue
wrote, establishes personal liberty
and economic prosperity by shielding the individual and his property
from the government. The protections that appear in the U.S. Bill of
Rights were mostly set down in
RYAN INZANA
A
lot of people are selling
Enlightenment these
days. After the Brexit
vote and the election of
President Trump, David
Brooks published a paean to the
“Enlightenment project,” declaring
it under attack and calling on
readers to “rise up” and save it.
Commentary magazine sent me a
letter asking for a donation to provide readers “with the enlightenment we all so desperately crave.”
And now there’s Steven Pinker’s
impressive new book, “Enlightenment Now,” which may be the definitive statement of the neo-Enlightenment movement that is
fighting the tide of nationalist
thinking in America, Britain and
beyond.
Do we all crave enlightenment?
I don’t. I like and respect Mr.
Pinker, Mr. Brooks and others in
their camp. But Enlightenment
philosophy didn’t achieve a fraction of the good they claim, and it
has done much harm.
Boosters of the Enlightenment
make an attractive case. Science,
medicine, free political institutions,
the market economy—these things
have dramatically improved our
lives. They are all, Mr. Pinker
writes, the result of “a process set
in motion by the Enlightenment in
the 1600s by those drafting England’s constitutional documents—
men such as John Selden, Edward
Hyde and Matthew Hale.
These statesmen and philosophers articulated the principles of
modern Anglo-American constitutionalism centuries before the U.S.
was created. Yet they were not Enlightenment men. They were religious, English nationalists and political conservatives. They were
familiar with the claim that unfettered reason should remake society, but they rejected it in favor of
developing a traditional constitution that had proved itself. When
Washington, Jay, Hamilton and
Madison initiated a national government for the U.S., they primarily turned to this conservative tradition, adapting it to local
conditions.
Nor is there much truth in the
assertion that we owe modern science and medicine to Enlightenment thought. A more serious
claim of origin can be made by the
Renaissance, the period between
the 15th and 17th centuries, particularly in Italy, Holland and England. Tradition-bound English
kings, for example, sponsored
pathbreaking scientific institutions
such as the Royal College of Physicians, founded in 1518. One of its
members, William Harvey, discovered the circulation of the blood in
the early 17th century. The Royal
Society of London for Improving
Natural Knowledge, founded in
1660, was led by such men as Robert Boyle and Isaac Newton, decisive figures in physics and chemistry. Again, these were politically
and religiously conservative figures. They knew the arguments,
later associated with the Enlightenment, for overthrowing political,
moral and religious tradition, but
mostly they rejected them.
In short, the principal advances
that today’s Enlightenment enthusiasts want to claim were “set in
motion” much earlier. And it isn’t
at all clear how helpful the Enlightenment was once it arrived.
What, then, was “the Enlightenment”? This term was promoted,
first and foremost, by the late-18thcentury philosopher Immanuel
Kant. Mr. Pinker opens his first
chapter by endorsing Kant’s declaration that only reason allows human beings to emerge from their
“self-incurred immaturity” by casting aside the “dogmas and formulas” of authority and tradition.
For Kant, reason is universal, infallible and a priori—meaning independent of experience. As far as
reason is concerned, there is one
eternally valid, unassailably correct answer to every question in
science, morality and politics. Man
is rational only to the extent that
he recognizes this and spends his
time trying to arrive at that one
correct answer.
This astonishing arrogance is
based on a powerful idea: that
mathematics can produce universal truths by beginning with selfevident premises—or, as Rene Descartes had put it, “clear and
distinct ideas”—and then proceeding by means of infallible deductions to what Kant called “apodictic certainty.” Since this method
worked in mathematics, Descartes
had insisted, it could be applied to
all other disciplines. The idea was
subsequently taken up and refined
by Thomas Hobbes, Baruch Spinoza, John Locke and JeanJacques Rousseau as well as Kant.
T
his view of “reason”—and of
its power, freed from the
shackles of history, tradition
and experience—is what Kant
called “Enlightenment.” It is completely wrong. Human reason is incapable of reaching universally
valid, unassailably correct answers
to the problems of science, morality and politics by applying the
methods of mathematics.
The first warning of this was
Descartes’s 1644 magnum opus,
“The Principles of Philosophy,”
which claimed to reach a final determination of the nature of the
universe by moving from self-evident premises through infallible
deductions. This voluminous work
is so scandalously absurd that no
unabridged English version is in
print today. Yet Descartes’s masterpiece took Europe by storm and
for decades was the main textbook
of the Cartesian school of science.
Kant followed this dubious example with his “Metaphysical Foundations of Natural Science” (1786),
in which he claimed to have deduced Newton’s laws of motion using pure reason, without empirical
evidence.
It was once well understood
that much of the modern world’s
success grew out of conservative
traditions that were openly skeptical of reason. When I was a
graduate student at Rutgers in the
1980s, the introductory course in
modern political theory had a section called “Critics of the Enlightenment.” These figures included
more conservative thinkers such
as David Hume, Adam Smith and
Edmund Burke. They emphasized
the unreliability of “abstract reasoning,” which they believed
could end up justifying virtually
any idea, no matter how disconnected from reality, as long as it
sounded self-evidently true to
someone.
One such myth was Locke’s
claim that the state was founded
on a contract among free and
equal individuals—a theory the Enlightenment’s critics understood to
be both historically false and dangerous. While the theory did relatively little harm in traditionbound Britain, it led to catastrophe
in Europe. Imported into France by
Rousseau, it quickly pulled down
the monarchy and the state, producing a series of failed constitutions, the Reign of Terror and finally the Napoleonic Wars—all in
the name of infallible and universal
reason. Millions died as Napoleon’s
armies sought to destroy and rebuild every government in Europe
in accordance with the one correct
political theory allowed by Enlightenment philosophy. Yet Napoleon
was simply trying, in Mr. Brooks’s
phrase, to “think things through
from the ground up.”
Advocates of the Enlightenment
tend to skip this part of the story.
Mr. Pinker’s 450-page book doesn’t
mention the French Revolution. Mr.
Pinker cites Napoleon as an “exponent of martial glory” but says
nothing about his launching a universal war in the name of reason.
These writers also tend to pass over
Karl Marx’s debt to the Enlightenment. Marx saw himself as promoting universal reason, extending the
work of the French Revolution by
insisting that the workers of the
world stop (again in Mr. Brooks’s
words) “deferring blindly to authority.” The “science” Marx developed
“from the ground up” killed tens of
millions in the 20th century.
The Enlightenment also propagated the myth that people’s only
moral obligations are those they
freely choose by reasoning. That
theory has devastated the family,
an institution built on moral obligations that many people, it turns
out, won’t choose unless guided by
tradition. Mr. Pinker’s book is
filled with charts showing the improvement in material conditions
in recent centuries. He offers us no
charts describing the breakdown
of marriage or the increase in outof-wedlock births in “enlightened”
societies. Nor is he worried about
the destruction of religion or the
national state. Kant believed that
both were out of conformity with
reason, and Mr. Pinker sees no
grounds to disagree.
Which brings us to the heart of
what’s wrong with the neo-Enlightenment movement. Mr. Pinker
praises skepticism as a cornerstone of the Enlightenment’s “paradigm of how to achieve reliable
knowledge.” But the principal figures of Enlightenment philosophy
weren’t skeptics. Just the opposite: Their aim was to create their
own system of universal, certain
truths, and in that pursuit they
were as rigid as the most dogmatic
medievals.
Anglo-Scottish conservatives,
from Richard Hooker and Selden to
Smith and Burke, were after something very different. They defended national and religious custom even as they cultivated a
“moderate skepticism”—a combination the English-speaking world
called “common sense.” If old institutions weren’t in evident need of
repair, a common-sense view favored leaving them unmolested,
since there was always the risk of
making things much worse. But it
also saw the potential in attempts
to improve mankind’s knowledge,
so long as the weakness and unreliability of human reason were
kept firmly in view. As Newton
wrote in his “Opticks”: “Arguing
from experiments and observations
by induction be no demonstration
of general conclusions, yet it is the
best way of arguing which the nature of things admits of.”
I
think of these moderate, skeptical words frequently these
days, as I follow the political
and cultural transformation of the
English-speaking world. American
and British elites, once committed
to a blend of tradition and skepticism, now clamor for Enlightenment. They insist that they have
attained universal certainties.
They display contempt worthy of
Kant himself toward those who decline to embrace their dogmas—
branding them “unenlightened,”
“immature,” “illiberal,” “backward-looking,” “deplorable” and
worse.
If these elites still had access to
common sense, they wouldn’t talk
this way. Enlightenment overconfidence has gone badly wrong often enough to warrant serious
doubts about claims made in the
name of reason—just as doubt is
valuable in approaching other systems of dogma. Such doubts
would counsel toleration for different ways of thinking. National
and religious institutions may not
fit with the Enlightenment, but
they may have important things to
teach us nonetheless.
The most important political
truth of our generation may be
this: You can’t have both Enlightenment and skepticism. You have
to choose.
Mr. Hazony is author of “The
Virtue of Nationalism,” forthcoming from Basic.
In Connecticut, Even the Politicians Are Publicly Funded
New Britain, Conn.
The debate stage
Wednesday night
was packed with no
fewer than nine Republicans vying for
the party’s gubernaCROSS
COUNTRY torial nomination.
With the Aug. 14
By Stephen
primary approachEide
ing, anxiety is growing over the Connecticut GOP’s failure to unite
behind a candidate.
One reason the campaign trail has
enticed so many pols is that Republicans’ chances seem strong. The incumbent, Dannel Malloy, isn’t running for re-election, perhaps because
he is the most unpopular Democratic
governor in America. Connecticut is
a deep-blue state, but a union-commissioned poll late last year put Mr.
Malloy’s approval even lower than
President Trump’s. GOP representation in the state Legislature has
surged since Mr. Malloy took office
seven years ago.
But there may be another reason
the campaign is so crowded: Connecticut’s “Citizens’ Election Program,” which provides public funds
to candidates for state office. The
money won’t be disbursed until after
the parties’ conventions next month,
but a promise of public cash lowers
the fundraising bar for potential
candidates.
The program was instituted in the
wake of Gov. John Rowland’s 2004
resignation for public corruption.
Though the misdeeds that forced Mr.
Rowland out of office had little to do
with campaign contributions, state
officials wanted to demonstrate that
they cared about clean government.
So they gave Connecticut publicly financed elections.
For this year’s gubernatorial candidates, the offer during the primary is
$1.25 million each. Accessing the
funds requires raising $250,000 in donations that must come mostly from
Connecticut residents and cannot exceed $100. It is also necessary to win
access to the primary ballot, either by
gaining at least 15% of delegates’
votes at the party conventions in May
or gathering almost 10,000 signatures
from registered party members. Then
after the primary, the major-party
general-election nominees get another $6 million each.
“More competition is good, but at
some point you get close enough
where you have to start thinning the
herd to really serious candidates,”
says one veteran GOP operative. In
his view, the public-financing program is “giving a false impression
that they have support that they
don’t really have.”
The availability of public money in
state races could help explain why,
despite the Connecticut GOP’s
strength in state offices, Democrats
dominate the state’s congressional
delegation. Republican consultant Liz
Kurantowicz says public financing for
state offices makes it harder to recruit contenders for the House and
Senate: “Some of these candidates
look at it and go, ‘Well, I could go run
for Congress and I’d have to work really hard to raise the $2 to $3 million
that I would need to be competitive,
or I can run for governor and the
state will kick in the money for a
campaign.’ ”
Nine Republicans are
running for governor.
Why not, since campaigns
can get tax money?
This year’s election will be the
state’s third gubernatorial contest under the public-financing program,
whose cost has attracted scrutiny
amid Connecticut’s apparently unending fiscal crisis. Last year, lawmakers
had to close a $5.1 billion two-year
shortfall; during the current legislative session the gap is around $200
million; and deficit projections for the
two-year budget to be taken up in
2019 are running in the billions. The
cost of the Citizens’ Election Program,
counting all state races, could reach
$40 million this year.
Public financing reflects a shift
away from the party-centric political
system, where party elders selected
nominees in proverbial “smoke-filled
rooms.” Across the country, changes
like open primaries and campaign
contribution limits weakened this
system. The Citizens’ Election Program goes a step further, freeing
politicians from the discipline imposed by reliance on party organizations for campaign funds.
Is that a good thing? From the late
1940s through the 1970s, John Moran
Bailey, one of the most noted political bosses in the nation, kept tight
control of the Connecticut Democratic Party’s nominating process. As
Joe Lieberman, the state’s future U.S.
senator, wrote in his 1981 political
history of Connecticut, Bailey “developed his power painstakingly and
used it gently to give a majority of
Connecticut voters the kind of government they wanted.”
Republicans here could use the
likes of a John Bailey today. Though
Wednesday’s debate featured substantive issues such as pensions and criminal-justice reform, an informative
argument is almost impossible with
nine participants. Despite Mr. Malloy’s unpopularity, Democrats can
count on strong organizational support from unions this November. The
GOP nominee will need a clear and
distinct statewide profile to prevail,
and so far no one has succeeded in
breaking out.
Unless the party settles soon on a
front-runner, Republicans risk at best
several more months of idle dispute,
financed by millions in public funds
that cash-strapped Connecticut can
ill afford to spare—and, worse, a
Democratic victory and four more
years in the wilderness.
Mr. Eide is a senior fellow at the
Manhattan Institute and contributing
editor of City Journal.
Notable & Quotable: Amended
From an April 5 report by LegalNewsLine.com:
California cities suing ExxonMobil
and four other big oil and gas companies have amended their complaint after a federal judge criticized
them for portraying an internal
memo by an industry association as
revealing inside information about
climate science that turned out to be
merely a summation of findings by
the Intergovernmental Panel on Climate Change. . . .
In the original complaint, the
paragraph describes an “internal GCC
presentation” stating that CO2 emissions would double and spark the
highest rate of global warming in
10,000 years.
The amended version makes it
clear the industry association’s presentation summarized the conclusions of the IPCC’s Second Assessment report released in 1995. . . .
Plaintiff lawyers are using this and
other evidence to try and prove that
the oil companies knew more about
global warming than they revealed to
the public.
.
A12 | Saturday/Sunday, April 7 - 8, 2018
* ***
THE WALL STREET JOURNAL.
OPINION
D
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
Punishing America First
Friedman vs. Mundell on Monetary Reform
onald Trump and his advisers spent pay more for pork because the beans are used
much of Friday telling everyone that mainly to feed pigs. But U.S. farmers will suffer
the U.S. is not in a trade war with China, more if Argentine and Brazilian soybean probut investors weren’t buying
ducers snatch American marit. Equity markets took a major
ket share.
Trump to Iowa:
header, falling by more than
The financial hit would
You’ll have to suffer
2% across the board. Maybe
come at a rough time in the
investors are starting to look
farm states, which have had to
while I force Xi
at the damage Mr. Trump may
cope with low commodity
Jinping to give in.
do to the Farm Belt states and
prices for several years. The
to the GOP’s chances of holdnearby table shows how seving Congress.
eral agriculture states underMr. Trump raised the stakes late Thursday in performed in income gains last year. Iowa,
his tariff showdown with Beijing, vowing to im- which Mr. Trump carried by 9.5% in 2016, finpose another $100 billion in tariffs on Chinese ished 49th out of 50. As a swing state that Bagoods in light of its “unfair retaliation” after his rack Obama carried twice, Iowa could easily
initial $50 billion in tariffs. The latest target list swing back in 2020.
still hasn’t been drawn up, and the silver-lining
Farm-state Republicans are beginning to nocrowd is hoping that Mr. Trump was merely tice. “China is guilty of many things, but the
popping off as part of his negotiating strategy. President has no actual plan to win right now.
Maybe that’s right. But then China popped off He’s threatening to light American agriculture
in return, saying it is ready to “forcefully” strike on fire,” said Nebraska Senator Ben Sasse on
back if the new tariffs are imposed.
Thursday. “Let’s absolutely take on Chinese bad
That’s the problem with protectionism. The behavior, but with a plan that punishes them inother side can strike back, and businesses and stead of us. This is the dumbest possible way
markets don’t know when the politicians will to do this.”
decide to stop pounding their chests.
Someone in the White House seems to know
i
i
i
the risks because its press shop spent Friday
We’ve been warning since Mr. Trump first sending out missives telling farmers not to
emerged as a candidate that his nationalist eco- worry. Mr. Trump’s $100 billion tariff threat
nomics should be taken seriously. This is one on Thursday included that he had told the secpolicy he seems truly to believe in, he has em- retary of agriculture “to use his broad authorpowered protectionist
ity to implement a
advisers, and previous Farm State Struggles
plan to protect our
Congresses have given
farmers and agriculPercent change in personal income growth in 2017,
a President wide latiture interests.”
and rank of percent change among the 50 states
tude to act unilaterally.
What’s Secretary
Trade was always the
Sonny
Perdue going to
Percent change
State rank
biggest economic risk
do—buy up all the soy0.3%
49
of the Trump Presi- Iowa
beans China no longer
dency, and now we’re Kansas
buys? Order farmers to
1
47
living through his
slaughter their pigs to
Missouri
2.1
38
punch-first policy as he
produce less pork that
1.4
46
tries to stare down Xi Nebraska
will also be subject to
Jinping.
Chinese tariffs?
North Dakota
- 0.3
50
Mr. Trump doesn’t
The basic economic
1.4
45
even seem to mind if South Dakota
problem with trade
the tariffs do some U.S.
protectionism is that it
3.1
economic
damage Source: Bureau of Economic Analysis
THE WALL STREET JOURNAL is a political intervenwhile he’s supposedly
tion that distorts marfixing the U.S. trade deficit. “I’m not saying kets. One political intervention leads to anthere won’t be a little pain, but the market has other, and the cumulative consequence is
gone up 40%, 42%, so we might lose a little bit higher prices, less investment and slower ecoof it. But we’re going to have a much stronger nomic growth.
country when we’re finished,” the President
Mr. Obama spent eight years interfering in
told a New York radio show on Friday. Nice to the domestic economy for his political purknow it will all turn out for the best.
poses, and the resulting slow growth was one
Meanwhile, much of that pain will fall on reason Mr. Trump won. The Republican tax reAmerican agriculture, not least the Farm Belt form and deregulation have put the economy on
states that Mr. Trump carried in 2016. Appar- a faster growth path, but Mr. Trump’s restricently he thinks he has them in the bag for 2020 tions on trade, and on immigration amid a labor
as well, though he might want to reconsider if shortage, are threats to that progress.
the tariff wars continue.
China’s trade abuses need to be addressed,
China targeted the $14 billion of U.S. soybean but Mr. Trump’s tariffs first strategy risks punexports a year to China, about half of the U.S. ishing America first. He—and we—had better
crop, with a 25% tariff. Chinese consumers will hope Mr. Xi is willing to bargain.
J
A Broken FBI Promise
ust last week, FBI Director Christopher
Mr. Nunes notes this is ridiculous, given
Wray released a statement saying he was that the document “is not highly classified.”
unhappy with how the bureau was re- More to the point, if an Intelligence Commitsponding to “legitimate contee made up of elected repregressional requests” for in- A week after the bureau sentatives of the American
formation—and promised a
is not qualified to see
promised cooperation, people
“transparent and responsive”
such material, no one is.
FBI. But already both the FBI it’s back to obstruction.
Mr. Nunes says he’s willing
and the Justice Department
to go to federal court to enare back to their old tricks.
force his subpoena. We are
At issue is a memo related to the opening further told that the House leadership supof a counterintelligence investigation into the ports this and other efforts to compel cooperTrump campaign’s alleged ties with Russia in ation from Justice and the FBI.
2016. Such information is crucial for Congress
In a better world Mr. Wray and Mr. Rosento get an accurate picture of how Justice and stein would have worked out a good faith soluthe FBI handled this investigation. House In- tion. In the apparent absence of that good
telligence Chairman Devin Nunes (R., Calif.) faith, we hope Congress is willing to use all
has written to both Director Wray and Deputy its powers, including contempt and impeachAttorney General Rod Rosenstein asking for ment if necessary, to persuade Mr. Wray and
an unredacted version for all committee mem- Mr. Rosenstein it is in their interests to make
bers to see. The bureau says it will not provide good on the FBI’s promise of transparency and
the material because it is too sensitive.
responsiveness.
H
New Jersey’s Business Model
erewith the latest installment in our individual tax rate to 10.75% from 8.97% on
continuing coverage of the race to the incomes above $1 million, restructuring
bottom between two of America’s business taxes to raise more revenue and
most progressive Democratic
raising the sales tax to 7%.
Phil Murphy wants
governors—Dannel Malloy of
That is essentially the govConnecticut and just-elected
ernance model Governor
to raise taxes to
Phil Murphy of New Jersey.
Malloy has used since 2011,
offer free tuition.
This week Mr. Murphy made
with famously unfortunate
his bid for the lead in his
economic results for Constate’s downward cycle.
necticut.
Governor Murphy has proposed that New
New Jersey is already dead last in the Tax
Jersey provide what has come to be known as Foundation’s 2018 ranking of state overall
“free” community college. It is already “free” business tax climates. It’s 50th in property
in New York, Oregon, Rhode Island and Ten- taxes but only 48th in individual taxes. Pernessee. Attached to Governor Murphy’s free- haps Mr. Murphy can overtake New York and
tuition commitment would be an outlay of $45 California to get to the bottom.
million in grants, which will come out of the
Producing a better-educated workforce is
state’s already stretched budget.
a good idea in any state, and Governor Murphy
Governor Murphy argues that this “invest- has more work waiting for him upgrading the
ment” makes sense because a larger pool of poor performance in many of the state’s K-12
community-college graduates will attract en- schools, which have been free for a long time.
trepreneurs and start-ups to New Jersey. But how will he attract start-up companies
“Community college is a linchpin opportunity and individual entrepreneurs to New Jersey
for us,” he says. Of course making New Jer- with the guarantee of higher taxes?
sey’s community colleges free depends on anOne silver lining: Next door in New York,
other linchpin: imposing higher taxes on other Governor Andrew Cuomo’s free tuition plan
residents of the state to pay for it.
for state colleges requires recipients to remain
The budget that Governor Murphy’s sub- in the state for several years or pay back their
mitted last month, a 4.2% spending in- grants. For now, at least New Jersey isn’t sealcrease, proposes raising the state’s highest ing the borders for graduates.
Sean Rushton’s “Monetary Reform
Would Rebalance Trade” (op-ed,
March 29) could mislead some about
the role played by the Bretton
Woods conference, which was held
before the close of World War II, not
after World War II as suggested in
his piece.
The U.S. dollar was backed by gold
only for international purposes. It
led to the preposterous dichotomy
where U.S. citizens were forbidden to
demand gold for their dollars, but
foreigners could and did demand
gold for theirs.
This bifurcation between domestic
and foreign monetary policy lacked
the discipline of a true gold standard
that existed before World War I,
dooming the Bretton Woods agreement to failure from the very beginning. The Federal Reserve, in cahoots
with the federal government, sealed
its fate as it implemented inflationary policies throughout the entire
period when the Bretton Woods
agreement was in force.
ERIK D. RANDOLPH
Harrisburg, Pa.
fixed to gold or a basket requires
fiscal-policy coordination among
countries, a la the euro, and we see
how that’s working.
ROBERT BLOHM
Toronto
Mr. Rushton accurately points to
the dollar’s status as the pre-eminent global reserve currency, and
how this is at least as large a problem for the trade balance as any formal trade treaties or practices. However, his proposed lack of flexibility
for the dollar’s exchange rate vis-àvis other currencies would make the
trade deficit larger, not smaller.
The record for fixed exchange
rates is one of less, not more, fiscal
discipline and therefore greater, not
smaller, trade deficits. While it is not
clear exactly why, when countries fix
their exchange rates they have an
ability to borrow more. Consider Argentina in the 1880s. It was on the
gold standard and borrowed excessively, leading to the Baring crisis of
1890. For that matter, Argentina’s
currency board with the U.S. dollar
in the 1990s didn’t instill fiscal disciMr. Rushton drives home the idea pline sufficient to avoid a debt crisis
that deficits come as a pair: trade
in 2002. Moreover, Greece, on joindeficit and budget deficit. If your
ing the euro—a currency union being
currency is the global reserve curthe most rigid form of fixed exrency, you inevitably fall into the
change-rate system possible—went
twin deficits. While unlikely to
on a borrowing binge that ended in
prompt immediate global currency
disaster.
reform, this does suggest that the
Look at Mexico. It had recurring
U.S., in attempting to manage its
crises in the 1980s and ’90s when
aggregate trade deficit, is spinning
the peso was pegged to the dollar.
its wheels. But I would add that
Since allowing the peso to float in
that doesn’t preclude addressing an- 1995, Mexico has avoided such debt
other country’s policy (like China’s
crises.
statist mercantilism) that aggraGiven the evidence against fixed
vates the deficit(s), albeit enabled
exchange-rate regimes, it is little
by them. The flip side of Robert
wonder that Milton Friedman
Mundell’s prescription for an “inter- strongly advocated that currencies
national” currency, and the reason
should float, rather than be pegged.
why Milton Friedman rejected it as
WILLIAM MILES
Wichita State University
not a practical political proposition,
Wichita, Kan.
is that an international currency
‘Chicken Tax’ Promoted U.S.-Made Pickups
I’m a retired general counsel in the
domestic auto industry. Holman Jenkins is absolutely correct in his analysis of the perverse effect of the
“chicken tax” and automotive regulation of the U.S. industry (“Your
Pickup Truck Takes You for a Ride,”
Business World, March 31). However,
his assertion that “the chicken tax
goes a long way toward explaining
U.S. pickup truck culture” makes little
sense. Americans don’t buy pickup
trucks and their truck-based SUV
cousins because they want to stoke
auto makers’ profits, but because
they actually like them.
While sometimes difficult for big
city dwellers to appreciate, pickups
and large SUVs are roomy, capable,
durable and safe. Gas in the U.S. is
cheap by world standards, and our
northern roads are full of potholes
that a truck suspension can take. The
improvements in safety tech, like forward-collision and blind-spot warnings, are wonderful for stopping you
from causing an accident, but not so
useful when you are the one hit.
That’s when you want to sit up high,
and have some serious sheet-metal
around you. I occasionally get an ecocritique from my kids about my 17
year-old Yukon XL Denali, but not
when they want to haul something,
pull something, or go “up north” for
a wintry weekend.
LOGAN ROBINSON
Bloomfield Hills, Mich.
Mr. Jenkins is, of course, correct
about the effect of the “chicken tax”
on light truck imports. But he misses
a larger point. The tariff has helped
induce foreign auto makers to build
assembly lines in the U.S. and Mexico.
Thus, far from limiting competition,
the tariff has increased domestic
competition. Ironically, some foreign
auto makers are now beneficiaries of
that tariff.
According to Edmonds, four of the
top 10 “most American” trucks in
2015 were made by Toyota and Nissan. In fact, the Toyota Tundra tied
with Ford’s iconic F-150 for the top
spot with 70% of its content sourced
in the U.S. or Canada.
The economic lesson is simple.
Taxes change behavior. In the long
run, trying to protect a sector may
well invite even more competition.
Next up: Foreign steel producers will
open mills in the U.S.
EM. PROF. TONY LIMA
CSU East Bay
Hayward, Calif.
Abortion Is Not Part of Happy Princesshood
Regarding Faith Moore’s “Planned
Princesshood” (op-ed, April 3): Having raised two little girls, I have
watched virtually every Disney princess movie over a 10-year-plus span.
My daughters loved them all.
Here is my observation: The stories are really about the supremacy
of true love. Despite the circumstances, the plot twists and turns,
these princesses discover that they
are indeed royal and extremely special. We cheer for them because
they are courageous—but more important, because they are lovely,
loving and lovable. The happy endings are sweets for the souls of innocent children.
Nature Is Red in Tooth and
Claw Without Any Humans
Stu Alderman (Letters, March 27)
writes about species other than humans that cannot adapt easily to
climate change. While perhaps unfortunate, this has been the history
of the earth. Long before there
were any large human populations,
the planet regularly has gone
through climate variations and
most species have died out without
human intervention.
THOMAS MELZER
Mount Pleasant, Wis.
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.
Questions for Disney and Planned
Parenthood to consider if they want
to introduce abortion into the princess stories: What circumstance
would account for an unwanted
pregnancy of this lovely girl that
wouldn’t turn the story into an
“adult” drama? Or would the unwanted child be the love child of
the princess and Prince Charming?
If the point is to educate children,
the kids will want to know what
happened.
I believe abortions and “happy
endings” are mutually exclusive—except in the most sophistic adult take
on what is really appealing to children, or anyone.
JULIA FLOWERS
Houston
Pepper ...
And Salt
THE WALL STREET JOURNAL
“Can you give us a minute to check
our GoFundMe campaign?”
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THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | A13
* * * *
OPINION
DECLARATIONS
By Peggy Noonan
I
want to write about something I think is a problem in
our society, that is in fact at
the heart of many of our recent scandals, and yet is obscure enough that it doesn’t have a
name. It has to do with forgetting
who you are. It has to do with refusing to be fully adult and neglecting
to take on, each day, the maturity,
grace and self-discipline that are expected of adults and part of their
job. That job is to pattern adulthood
for those coming up, who are looking, always, for How To Do It—how
to be a fully formed man, a fully
grown woman.
From Facebook to Harvey
Weinstein, America’s
scandals amount to a
giant crisis of maturity.
It has to do with not being able to
fully reckon with your size, not because it is small but because it is big.
I see more people trembling under
the weight of who they are.
Laura Ingraham got in trouble for
publicly mocking one of the student
gun-control activists of Parkland,
Fla. She’s been unjustly targeted for
boycotts, but it’s fair to say she was
wrong in what she said, and said it
because she didn’t remember who
she is. She is a successful and veteran media figure, host of a cable
show that bears her name. As such
she is a setter of the sound of our
culture as it discusses politics.
When you’re that person, you don’t
smack around a 17-year-old, even if—
maybe especially if—he is obnoxious
in his presentation of his public self.
He’s a kid. They’re not infrequently
obnoxious, because they are not
fully mature. He’s small, you’re big.
There’s a power imbalance.
As of this week, it is six months
since the reckoning that began with
the New York Times exposé of Harvey Weinstein. One by one they fell,
men in media, often journalism, and
their stories bear at least in part a
general theme. They were mostly
great successes, middle-aged, and so
natural leaders of the young. But
they treated the young as prey. They
didn’t respect them, in part because
they didn’t respect themselves. They
didn’t see their true size, their role,
or they ignored it.
It should not be hard to act as if
you are who you are, yet somehow it
increasingly appears to be. There is
diminished incentive for people to
act like adults. Everyone wants to be
cool, no one wants to be pretentious.
No one wants to be grim, unhip, to
be passed by in terms of style.
And our culture has always honored the young. But it has not always honored immaturity.
I have spent the past few days
watching old videos of the civilrights era, the King era, and there is
something unexpectedly poignant in
them. When you see those involved
in that momentous time, you notice:
They dressed as adults, with dignity.
They presented themselves with
self-respect. Those who moved
against segregation and racial indignity went forward in adult attire—
suits, dresses, coats, ties, hats—as if
adulthood were something to which
to aspire. As if a claiming of just
rights required a showing of gravity.
Look at the pictures of Martin Luther King Jr. speaking, the pictures
of those marching across the Edmund Pettus bridge, of those in attendance that day when George Wallace stood in the schoolhouse door
and then stepped aside to the force
CHAD CROWE
If Adults Won’t Grow Up, Nobody Will
of the federal government, and suddenly the University of Alabama was
integrated. Even the first students
who went in, all young, acted and
presented themselves as adults. Of
course they won. Who could stop
such people?
I miss their style and seriousness.
What we’re stuck with now is Mark
Zuckerberg’s.
Facebook’s failings are now famous and so far include but are perhaps not limited to misusing, sharing
and scraping of private user data,
selling space to Russian propagandists in the 2016 campaign, playing
games with political content, starving journalism of ad revenues, increasing polarization, and turning
eager users into the unknowing product. The signal fact of Mr. Zuckerberg
is that he is supremely gifted in one
area—monetizing technical expertise
by marrying it to a canny sense of
human weakness. Beyond that, what
a shallow and banal figure. He too
appears to have difficulties coming
to terms with who he is. Perhaps he
hopes to keep you, too, from coming
to terms with it, by literally dressing
as a child, in T-shirts, hoodies and
jeans—soft clothes, the kind 5-yearolds favor. In interviews he presents
an oddly blank look, as if perhaps
his audiences will take blankness for
innocence. As has been said here, he
is like one of those hollow-eyed
busts of forgotten Caesars you see
in museums.
But he is no child; he is a giant
bestride the age, a titan, one of the
richest men not only in the world
but in the history of the world. His
power is awesome.
His public reputation is now damaged, and about this he is very concerned. Next week he will appear before Congress. The Onion recently
headlined that he was preparing for
his questioning by studying up on
the private data of congressmen.
The comic Albert Brooks tweeted: “I
sent Mark Zuckerberg my entire
medical history just to save him
some time.”
His current problems may have
yielded a moment of promise, however. Tim Cook of Apple, in an impressive and sober interview with Recode’s Kara Swisher and MSNBC’s
Chris Hayes, said last week something
startling, almost revolutionary: “Privacy to us is a human right.” This was
stunning because it was the exact opposite of what Silicon Valley has been
telling us since social media’s inception, which is: Privacy is dead. Get
over it. Some variation on that statement has been made over and over by
Silicon Valley’s pioneers, and they say
it blithely, cavalierly, with no apparent sense of tragedy.
Because they don’t do tragedy.
They do children’s clothes.
Perhaps what is happening with
Facebook will usher in the first serious rethinking, in terms of the law,
on what has been lost and gained
since social media began.
Congress next week should surprise. The public infatuation with big
tech and Silicon Valley is over and
has been over for some time. Congress should grill Mr. Zuckerberg
closely on how he took what people
gave him and used it. Many viewers
would greatly enjoy a line of questioning along these lines: “Is your
product, your service, one without
which we can’t live, like Edison’s
electricity? It seems to me you are a
visionary, sir, and we should give
you your just reward, and make you
a utility!”
Mr. Zuckerberg invited Congress to
regulate him. Wondering why, it has
occurred to me it’s because he knows
Congress is too stupid to do it effectively. He buys lobbyists to buy them.
He knows how craven, unserious and
insecure they are, and would have no
particular respect for them. Nor would
he have particular reason to.
I hope they are adults. I hope they
don’t showboat or yell but really
probe, carefully.
More than ever, the adults have to
rise to the fore and set the template
for what is admirable. If we don’t,
those who follow us will be less admirable even than us, and those after them less admirable still. That
would be a tragedy, wouldn’t it?
My Grandfather and the ‘Blue Eyes-Brown Eyes’ Lesson
By Michael Judge
I
’d always known that my grandfather Dinsmore Brandmill—a
World War II veteran, history
teacher and K-12 principal—had devoted his life to educating Iowa’s
children. But it wasn’t until recently,
as the 50th anniversary of the assassination of Martin Luther King Jr.
approached, that I understood the
true breadth of his legacy.
My mother was 8 when her father
shipped out for Okinawa and one of
the final and bloodiest battles of the
Pacific War. More than 12,500 American soldiers, sailors and airmen
were killed there in 12 weeks; another 36,000 were wounded. Japanese deaths, including civilians, are
estimated near 200,000.
The Japanese call the battle tetsu
no ame—“rain of steel”—and for
good reason. Japanese forces, including kamikazes, sank 36 American ships and damaged 368 more.
When the Imperial Army found its
ranks depleted, it turned Okinawan
villagers—nearly all against their
will, some as young as 13—into cannon fodder and suicide bombers.
Told they’d be brutalized by the conquering forces, mothers jumped
from cliffs with their infants.
After Okinawa, my grandfather—
who died in 1988 at 85, his family by
his side—was never the same.
Though still a consummate gentleman and committed educator, he
was more removed from his surroundings, more stoic about the
world and what he could and could
not change in it. My mother remembers long rides down country roads,
holding his hand in silence.
Neither of them could have known
that a half-century later my mother’s
youngest son—me—would live and
work in Tokyo as a journalist, fall in
love, marry and be blessed with a son
who is half Japanese. My mother and
older brother attended the wedding
celebration in Japan in 1997, and I
like to think my grandfather would
have, too, if he’d been alive.
Having seen racism and xenophobia in many forms—from the plight
of African-Americans under Jim
Crow, to the murderous anti-Semitism that sparked the Holocaust, to
Japan’s “superior race” justifications
for invading and slaughtering its
After MLK’s assassination
he stood behind a teacher
who gave the world a lesson
about racial prejudice.
neighbors—my grandfather understood the dangers of scapegoating
whole populations and the importance of reiterating, even when we
fall short, that we are all equal in
God’s eyes.
How do I know that? Because 50
years ago this week, the day after Dr.
King was murdered by a white supremacist in Memphis, Tenn., a
teacher at my grandfather’s school
in Riceville, Iowa, resolved to teach
her all-white, all-Christian thirdgrade students a lesson about bigotry—by having them actually experience it. Her name was Jane Elliott.
The lesson came to be known as
“Blue Eyes-Brown Eyes.”
Ms. Elliott divided her class by
eye color. She told the children with
brown eyes they were naturally superior while giving them high praise
and special privileges. She told the
blue-eyed children they were naturally inferior, unruly and untrustworthy, while treating them like second-class citizens. The next day, the
roles were reversed.
What Ms. Elliott witnessed
shocked her. “I watched what had
been marvelous, cooperative, wonderful, thoughtful children turn into
nasty, vicious, discriminating little
third-graders, in the space of 15 minutes,” she later explained. Racism, in
other words, was something that
people learned.
After two agonizing days, Ms.
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Elliott explained to her students that
the exercise was over, and that what
both groups had experienced was “a
filthy, nasty word called discrimination,” which means “treating people
a certain way because they are different.” When she asked the children
if that was fair, they shouted in unison: “No!” They had learned, however briefly, what if felt like to be the
victims of prejudice.
When news of the eye-color exercise spread, many in the community
protested. Some had legitimate concerns: that this type of social experiment had no place in public schools or
could scar the children emotionally.
Other reactions were ugly. Ms. Elliott
received death threats from around
the country, and she and her family
were called names like “n— lover.”
As the school’s principal, my
grandfather faced more than a few
irate parents and school-board
members calling for Ms. Elliott’s
resignation. But he stood by his
teacher, telling her to continue with
her lesson—that he, in effect, had
her back. A few years later, in a
book about the exercise, she inscribed the following: “For Mr.
Brandmill, who was the kind of
principal all teachers dream of—and
a few lucky ones find.”
The Blue Eyes-Brown Eyes exercise has since been taught countless
times to children and adults around
the world. In 1985 it was the subject
of a PBS “Frontline” episode titled “A
Class Divided.” If you watch the documentary closely, you’ll briefly see
my grandfather in the first few minutes. He’s the elderly gentlemen in
the fedora and winter coat, walking
alongside the yellow school buses
and throngs of happy children.
Ms. Elliott, now in her 80s, recently sent my mother a letter
praising my grandfather for his
courage during a dark time in
American history. “Without Mr.
Brandmill’s leadership,” she wrote,
“the Blue Eyes-Brown Eyes exercise
would probably never have happened
even once, and it certainly wouldn’t
have been allowed to be repeated. . .
. He was the best Principal I’ve ever
had, and one of the few men I’ve
known whose integrity was without
question. Even now, I consider him a
hero, a friend, and a Blessing.”
Dinsmore Brandmill, the son of an
orphaned German émigré, was born
on June 7, 1903, in a small Iowa town
named for his mother, Elma.
Throughout her life Elma kept a lock
of her son’s hair, which she allowed
to grow to his shoulders when he was
a boy, in a book near her bed. His
eyes, like my son’s, were brown.
Mr. Judge, a former Journal deputy editorial features editor, teaches
at the University of Iowa School of
Journalism and Mass Communication.
Trump’s Trade Tactic Might Work
A game of chicken
can always end
badly, but why is
the U.S. press doing China’s work
for it?
Right now a barBUSINESS
gaining game is unWORLD
der way that could
By Holman W.
leave the world
Jenkins, Jr.
trading system better off, with China
cheating less. Not the least benefit,
this would strengthen the political
sustainability of trade in the U.S.
and other Western nations—an outcome of high strategic value even to
China.
Both sides are in the crotch-grabbing phase at the moment. They
want their threats to be treated as
credible even if they aren’t.
So eager are some Americans for a
Donald Trump failure, though, they
rush to convince the world that
Americans can’t tolerate the slightest
risk of pain or loss in a good cause.
U.S. soybeans are on China’s target
list, but let us calm ourselves. If China
buys Brazilian soybeans, the world
doesn’t end. Brazil’s customers would
buy U.S. soybeans. The net effect
would be only slightly damaging to all
concerned, except for the rail and
shipping companies that would benefit from the world opting for secondbest logistics in getting the global
soybean crop to market.
Ditto Boeing. Its jets are on
China’s retaliation list, too, but a reality check is in order. Boeing and
Airbus have backlogs stretching out
almost a decade. If a Chinese carrier
cancels a delivery for next year, it
can’t just cut the Airbus line, at least
not without paying through the nose
for another customer’s delivery slot.
Or it could settle for an older, secondhand aircraft, knowing it would
pay a penalty in fuel efficiency, passenger amenities and maintenance
downtime that could be the difference between a successful service
and a money-losing one.
Donald Trump’s rhetoric often
fails to notice that trade is a winwin, but the peanut gallery should
not lose sight of the same basic context in today’s trade fight: Both sides
are putting guns to their own heads
and saying, “Give me what I want or
the idiot gets it.”
Such incentives strongly favor the
parties reaching a deal and declaring
victory for the benefit of the home
fans. Both know the U.S.-China trade
relationship is too important not to
put it on a sounder basis.
Americans should not
be too quick to sell
their own side short.
So the real question is, “Do we
have confidence in the wisdom and
perspicacity of the Chinese and U.S.
administrations?” Mr. Trump is not
a child. He has been in negotiations
all his life. It’s the one skill he
brought to office that can’t be
gainsaid.
What’s more, Mr. Trump is not a
bridge burner, whatever you think of
his Twitter habits. He is always
ready to be best friends tomorrow
with whomever he’s at war with today. His relationship with the “failing New York Times” is the cognoscenti case in point. No news
organization has been so relentlessly
denounced and yet so relentlessly
courted by Mr. Trump. He can’t give
up. He is not likely to lead us down
a path of permanent hostility with
China (or anybody else) from which
there is no return.
The Chinese deny it but they know
the U.S. has legitimate gripes, especially with respect to Beijing shaking
down U.S. companies for their trade
secrets as a price for getting access to
the Chinese consumer.
China has gotten by with claiming
it’s a poor, backward country, but
such excuses no longer suit its own
idea of itself. Look for a settlement
in which Beijing insists it never engaged in technology theft and now
will stop. It will launch new laws and
courts to hear complaints of its foreign partners. Sure, these reforms
you wouldn’t take to the bank right
away. But, long term, China’s interest
in profiting from its own intellectual
property should propel it in the right
direction.
Americans, though, have to be
ready to accept some risk if they
want China to change its behavior.
Danger can always be avoided by
bending over for whatever China
wants. Happily, the U.S. economy is
strong right now, verging on a labor
shortage as rising wages can’t lure
the Obama-discouraged back into the
workforce fast enough.
Stock markets will never be
happy with uncertainty, and you
might wish to put your portfolio in a
medically induced coma for the duration. But it pays not to sell America short, given its inherent, deeply
rooted strengths. These strengths
are admired by others, including
China. They were apparent even on
President Obama’s watch, with all its
dreary regulatory and antibusiness
overkill. His tenure will still be remembered, if dimly, as the time
when America’s frackers revolutionized the world energy scene.
Mr. Trump is not the idiot his detractors say, and nobody says the
Chinese are idiots. The omens are
propitious for a major advance in
trade relations. But the Chinese
should remember one thing: Mr.
Trump is a teetotaler, so the eventual congratulatory toasts should be
nonalcoholic.
.
A14 | Saturday/Sunday, April 7 - 8, 2018
THE WALL STREET JOURNAL.
* ***
SPORTS
THE MASTERS
Augusta National Still Has Bite
This Masters is shaping up as a reminder of just how much of a challenge the course creates for golf’s top players
BY BRIAN COSTA
Augusta, Ga
RORY MCILROY arrived at Augusta National
more than a week before the start of the Masters. By the time the tournament began
Thursday, he had played 90 practice holes, the
equivalent of five full rounds. In pursuit of the
only major he has never won, McIlroy studied
the course more extensively than ever.
Then he teed off, and it was as if he were
playing somewhere else. The greens were
noticeably faster. The areas around them
were firmer. His caddie, Harry Diamond, estimated that the course played at least five
to six shots tougher than it did just a week
earlier.
“That’s Augusta,” McIlroy said. “It’s
amazing what they can do in the space of a
week here.”
Augusta National is mulling whether to
lengthen the course, amid a distance boom
at the top of the sport that is rendering
many classic courses obsolete. But this Masters is shaping up as a reminder of just how
much of a challenge the club can create simply by manipulating the land the course already occupies.
In benign weather, the field scoring average on Thursday was 1.8 strokes over par. In
windier, though hardly gusty conditions Friday, that figure was more than 2.5 over par
in the late afternoon.
Some of the images were ghastlier than
the raw numbers. There was Sergio Garcia,
the defending champion, hitting five consecutive balls onto the 15th green Thursday,
only to watch each one spin back and roll
into the water. There was Phil Mickelson on
No. 9 on Friday, hitting from under the
trees, then hitting a tree, then duffing a flop
shot. Tiger Woods was so deep under a cluster of trees behind the fifth green that he
disappeared, like the ghosts in “Field of
Dreams” wading into a cornfield.
It all made for a crowd near the top of
the leaderboard that left no one asking if
Augusta National is still challenging enough
for the modern pro.
“By the end of the week, this will be a
pretty packed leaderboard, the way the golf
course is set up,” Woods said Thursday.
“They have it right where they want it. It’s
really hard to run away from it, but it’s also
really easy to lose it out there.”
The Saturday forecast called for steady
rain and possible thunderstorms, raising the
possibility of sloppier play. In most tournaments, that would at least offer the promise
of softening the greens, allowing players to
fire more aggressively at flagsticks. But Augusta National’s ability to control the conditions is weather-resistant.
In the early 2000s, it installed a SubAir
system that sucks the moisture out from under every green to whatever extent the club
desires. It’s like an underground vacuum,
which can be heard only through small,
scattered vents away from the greens.
The combination of the inherent trickiness of Augusta’s greens and the firmness it
manufactures puts a premium on precision.
Even when the wind doesn’t seem strong, if
it’s swirling unpredictably as it was Friday,
it can wreak havoc with player’s nerves on
approach shots.
T-B: BRIAN SNYDER/REUTERS; CHRIS CARLSON/ASSOCIATED PRESS
Jordan Spieth, above, and Rory McIlroy, left,
during play at Augusta National on Friday.
“Some of these holes,” Jordan Spieth said,
“where you’re trying to figure out which direction it’s coming from—it’s a beautiful day,
it’s beautiful to play golf in, but out here
when you have to land it on tiny little areas,
and three miles an hour one way or the other
actually affects our golf ball significantly, it’s
actually challenging at times.”
Weather
SOCCER
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
Portland
P
d
Helena
Billings
Eugene
Boise
i
Ottawa
Mpls./St.
pls //St
St.. Paul
Pau
30s
Toronto
T
t
30s
Montreal
A bany
b y
Albany
Augusta
A
t
40s
Boston
50s
30s
Hartford
tfordd
Milwaukee
k
Detroit
t
Buffalo
l
Yorkk
ew Y
Cleveland
Cleve
Cl
l d
40s New
Chicago
Ch g
Chic
Des
es Moines
Philadelphia
Ph
Ph
hil d lph
Omaha
h
Pittsburgh
Pitts
b gh
di p
p gfi ld Indianapolis
Springfield
Washington
h gton
on D.C.
D.C
DC
Kansas
Charleston
Ch
Charles
l t
Topeka
City
Richmond
h
d
St.. Louis
Lou
L
LLouisville
Lou
ill
Wichita
hit
Raleigh
h
Nashville
h ill
Charlotte
Ch
h
60s
oux
ux Falls
Pierre Sioux
60s Reno
Sacramento
Salt LLake
k City
an Francisco
San
Denver
Colorado
C
d
Springs
p g
70s
Las
L
Vega
Vegas
Loss A
Angeles
An
90s
80s
Cheyenne
Ch
Cheyenn
Santaa FFe
Phoenix A
Albuquerque
b q q
Tucson
El P
Paso
40s
50s
Memphis
phi
Oklahoma
klahoma
homa Cit
Cityy
LLittlee Rockk
Dallas
D
ll
Jackson
Jackk
Wor
Ft.. Worth
Atlanta
A
t
60s
San
an Antonio
A t
A h g
Anchorage
40s
Honolulu
80s
70s
U.S. Forecasts
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
46 33 s
46 34 s
Atlanta
62 36 r
61 47 pc
Austin
58 48 pc 74 60 pc
Baltimore
44 30 sn 49 32 pc
Boise
64 45 r
57 37 pc
Boston
48 33 pc 43 29 pc
Burlington
41 23 c
38 22 pc
Charlotte
60 33 r
58 41 s
Chicago
37 21 s
39 30 pc
Cleveland
35 26 s
37 27 pc
Dallas
53 41 c
67 53 pc
Denver
59 38 pc 59 33 pc
Detroit
39 23 pc 41 29 pc
Honolulu
79 70 sh 79 70 c
Houston
66 54 c
69 61 pc
Indianapolis
41 22 pc 44 31 pc
Kansas City
41 27 s
37 27 c
Las Vegas
90 61 c
83 60 s
Little Rock
52 30 i
59 37 pc
Los Angeles
71 55 c
75 59 s
Miami
86 71 pc 87 70 sh
Milwaukee
34 21 s
36 29 pc
Minneapolis
30 11 s
32 24 sn
Nashville
46 29 pc 53 42 pc
New Orleans
72 49 r
66 61 pc
New York City
48 32 sn 47 32 pc
Oklahoma City
47 31 c
55 37 pc
C
b
Columbia
70s
80s
90s
100+
Warm
Rain
Cold
T-storms
Stationary
Snow
Showers
Flurries
Birmingham
h
b
Mobile
Austin
A ti
Houston
New Orleans
70s
Jacksonville
Orlando
l d
Tampa
80s
70s
Miami
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.
Hi
41
86
46
94
40
47
57
69
43
60
64
76
57
36
46
Today
Lo W
25 s
65 t
32 sn
72 pc
22 pc
28 pc
48 r
45 r
27 s
43 r
52 sh
51 pc
47 r
23 s
34 r
Tomorrow
Hi Lo W
38 26 c
77 64 c
47 32 pc
92 64 s
39 27 pc
44 25 pc
56 41 r
71 47 s
41 33 sn
56 42 sh
64 51 s
70 37 s
55 42 r
34 22 sn
51 36 s
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
68
68
87
80
53
64
68
74
95
54
56
Today
Lo W
49 pc
55 t
61 pc
70 t
34 pc
47 s
51 pc
58 t
77 pc
41 sh
41 c
MAN CITY’S CONSOLATION
20s
20s
Bismarckk
50s
10s
20s
30s
0s
10s
Winnipeg
ip
Seattle
San Diego
<0
10s
Calgary
Tomorrow
Hi Lo W
69 47 sh
70 55 pc
89 65 s
86 73 pc
66 41 c
67 46 s
70 51 sh
75 63 t
94 77 pc
54 39 c
53 38 c
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 City
Tokyo
Toronto
Vancouver
Warsaw
Zurich
Hi
70
65
87
74
60
90
76
80
60
55
91
71
79
67
43
91
68
84
91
66
85
50
58
89
83
68
68
37
54
59
70
Today
Lo W
45 s
47 pc
66 pc
63 c
49 pc
76 sh
54 pc
56 s
50 sh
45 r
77 pc
53 pc
55 pc
51 pc
30 pc
81 pc
53 t
72 sh
68 pc
49 s
75 pc
36 s
44 s
78 sh
68 s
56 r
48 pc
21 pc
44 sh
42 s
41 s
Tomorrow
Hi Lo W
71 47 pc
69 47 pc
88 67 pc
77 68 pc
59 47 c
86 76 sh
68 49 s
77 56 pc
58 49 sh
59 43 pc
90 78 pc
85 59 pc
79 55 pc
65 50 pc
51 39 pc
92 81 pc
68 51 sh
84 73 pc
93 70 pc
70 53 pc
85 75 pc
54 39 c
70 51 s
90 78 c
83 67 s
77 58 s
61 49 pc
36 20 pc
54 44 c
71 49 s
70 44 pc
BY JOSHUA ROBINSON
MANCHESTER CITY thought
it had the highest-profile
week of its season all figured
out. In the space of six days, it
would knock Liverpool out of
the Champions League, book
its spot in Europe’s final four,
and clinch the Premier League
title with a win over Manchester United on Saturday.
That was the plan.
All of it went to pieces in
one disastrous half-hour
Wednesday night at Anfield.
By losing the first leg of its
Champions League quarterfinal 3-0, City has now scrambled what was supposed to
be one of the most glorious
weeks in its history.
Which leaves City manager
Pep Guardiola with a dilemma:
Should he rest key players
against United this weekend
to have the freshest possible
team against Liverpool next
Tuesday? Or does he concede
that the Champions League
might be a lost cause and
double down on sealing the
Premier League title?
Immediately following
Wednesday’s collapse, Guardiola appeared too shellshocked to consider the
question properly.
“I believe a lot in my
team. They’ve shown me lots
of good things over the season,” he said. “United is
coming at home then we
TIM GOODE/PA WIRE/ZUMA PRESS
d
t
Edmonton
V
Vancouver
Length off the tee can still help, and in
that regard, Augusta National isn’t immune
to the changes impacting the rest of the
sport. The club’s ongoing expansion of its
geographical footprint, through various land
purchases over the years, has created options for lengthening some holes. The Masters is played at a current length of 7,435
yards, which is typically longer than the
British Open and shorter than the U.S. Open.
Fred Ridley, the club’s new chairman,
mentioned something Bobby Jones, who cofounded the Masters, once said about the
par-5 13th hole.
“He said that the decision to go for the
green in two should be a momentous one,”
Ridley said. “And I would have to say that our
observations of these great players hitting
middle and even short irons into that hole
isn’t a momentous decision. And so we think
there is an issue, not only there, but in the
game generally, that needs to be addressed.”
Whether the remedy takes the form of a
reduced-distance ball, a longer course or
both remains to be seen. But at a time when
many courses believe they have no choice
but to lengthen, lengthen, lengthen, Augusta
National is showing how its teeth have
stood the test of time.
After finishing at 4 under to grab a share
of the clubhouse lead Friday, McIlroy said
what any major championship host would
want to hear. “Anything under par today
was pretty good,” he said.
Manchester City players react during a 3-0 loss to Liverpool.
have three days to prepare.”
History suggests that City
should forget about the
Champions League now and
divert all resources to beating United on Saturday.
More than 95% of teams that
lost the first leg by at least
3-0 in European competition
have been eliminated. But
Guardiola knows that if any
side can pull of the miracle,
it’s his squad of high-fliers,
which has romped through
English soccer all season.
It’s not like a comeback is
completely unheard of either. This time last year,
Barcelona recovered from a
4-0 first-leg defeat against
Paris Saint-Germain by winning 6-1 at home to advance.
“We have the permission
to believe it,” Guardiola said.
Still, the whole debacle has
put something of a damper
on what was supposed to be
Manchester City’s procession
to the title. City has just one
league defeat all season and
could clinch the title with six
games to spare, a Premier
League record.
But when the possibility
first emerged of winning its
third title in six years
against United, its most
hated foe, the team never
imagined it could be a sideshow to a Champions League
disappointment.
“We have to do it the
hard way,” Man City captain
Vincent Kompany said. “Fair
play to Liverpool tonight,
but it’s our turn next week.”
.
BUSINESS NEWS B3,B4 | WEEKEND INVESTOR B5 | MARKETS DIGEST B7 | HEARD ON THE STREET B12
BANKS UKRAINE’S RESOLVE B6
PROBE SEC LEVELS CHARGES B10
© 2018 Dow Jones & Company. All Rights Reserved.
DJIA 23932.76 g 572.46 2.3%
* * * * **
NASDAQ 6915.11 g 2.3%
THE WALL STREET JOURNAL.
STOXX 600 374.82 g 0.3%
10-YR. TREAS. À 14/32 , yield 2.779%
Saturday/Sunday, April 7 - 8, 2018 | B1
OIL $62.06 g $1.48
GOLD $1,331.90 À $7.60
EURO $1.2283
YEN 106.92
Small Colleges Drop Out of TIAA Amazon
Fee for All
Small institutions have had higher
costs on employee-retirement
accounts with TIAA since its CREF
funds raised fees in 2015 on
smallest plans.
Previous fees
Current fees
Account size Fees (% of assets)
0.24%
Less than
$20 million
0.35%
0.24%
$20 million to
$400 million
$400 million
and higher
0.20%
0.24%
0.10%
Source: the company
THE WALL STREET JOURNAL.
Some groups create
plans with combined
retirement-account
assets to lower fees
BY GRETCHEN MORGENSON
More than a dozen small
colleges have joined to yank
the management of their employee retirement accounts
from TIAA, the largest provider of retirement-plan services to nonprofit organizations, after it raised the fees on
some of its most popular funds.
In Wisconsin, a group of colleges in January launched a
new plan with the combined retirement-account assets of
three members, all of which had
been with TIAA in recent years.
The group expects to save 38%
and 52% in fund expenses and
record-keeping fees, respectively, as a result.
Fourteen small colleges in
Virginia also joined a new multiemployer plan that began operating in November.
Small institutions around
the country started looking for
ways to bring down their retirement-account costs in 2015,
when TIAA changed the annual-fee model on its popular
CREF funds. From a previous
flat fee of 0.24% of assets, the
company started charging
0.35% of assets for institutions
with less than $20 million under management—a nearly
50% increase. Plans above that
size saw their costs decline.
TIAA has $1 trillion under
management and five million
customers, most of them
workers at nonprofit organizations such as universities, research entities and governments. It said the 2015 fee
increase on small institutions
would “better reflect the actual administrative and distribution expenses across the
range of clients we serve.”
Rolf Wegenke, president of
the nonprofit Wisconsin Association of Independent Colleges
and Universities—an organization of 24 private institutions
in the state that created the
new multiemployer plan—said
rising retirement-plan costs
played a role in their decision.
He said more colleges in the
association are expected to
Voices
Payment
Strategy
join the plan, which currently
is available to employees of
WAICU, Lawrence University
and Ripon College.
TIAA bid to be the recordkeeper of the new group plan,
but Transamerica won the assignment, Mr. Wegenke said.
Chad Peterson, a TIAA
spokesman, said of the Wisconsin plan: “A multiemployer
plan approach makes sense for
some to gain administrative
and plan efficiencies but not
for others who prefer to create
their own plan to best fit their
specific campus needs.”
Employees at Lawrence University in Appleton, Wis., with
$100 million in retirementplan assets, are saving 50% under their new program, said
Please see TIAA page B2
BY ANNAMARIA ANDRIOTIS
AND LAURA STEVENS
Food Stamp Cuts Would Hit Grocery Chains
SNAP participation has declined
since 2013, weighing on grocers'
results. A large portion of
food-stamp purchases are made
at big-box chains like Walmart.
Average participation in SNAP*
.
50 million people
40
30
20
10
0
1970
’80
’90
2000
’10
SNAP spending by type of retailer
52.3%
40.4%
Superstores
Supermarkets†
Convenience stores Other
1.7%
5.6%
*Data as of March 9, 2018
†Includes supermarkets, combination
grocery, large grocery, medium grocery
and small grocery stores
Source: Department of Agriculture
THE WALL STREET JOURNAL.
THE INTELLIGENT INVESTOR | By Jason Zweig
Big Tech Companies
Test Limits of Growth
The more
flippant the
investing cliché, the more
you should
question it.
Consider “the bigger they
are, the harder they fall.”
At their lows this week,
the technology shares that
have until recently been the
stock market’s darlings—
Facebook Inc., Amazon.com
Inc., Netflix Inc., Google parent company Alphabet Inc.
and other giants—had fallen
more than 17% since March
13. Over that period, the S&P
500 index fell 8%.
At first, the drop in big
tech stocks seems driven by
bad news that is bound to
ROBERT F. BUKATY/ASSOCIATED PRESS
The grocery sector is bracing for the possible loss of tens
of billions of dollars in purchases by low-income shoppers
using food stamps.
The Trump administration
is pushing to rein in the budget
for the food-stamp program by
nearly $130 billion over a decade, representing a 20% reduction of its current annual
allotment of $63 billion. The
move could constitute one of
the biggest yearly reductions
in program-sponsored purchases for retailers since the
recession.
This and other proposals
from Republicans intend to
overhaul the nation’s foodstamp program as lawmakers
begin renegotiating the Farm
Bill, a sprawling $900 billion
piece of legislation that allots
about 80% of its funding to nutrition assistance and is set to
expire at the end of September.
Some participants may no
longer receive food stamps if
lawmakers approve stricter
work requirements included in
proposals by Republicans on
the House Agriculture Committee.
Please see SNAP page B2
Foodstuff
worsen: Facebook improperly sharing personal data,
President Donald Trump
criticizing Amazon, European regulators investigating
potential antitrust violations.
Or could this just be a
stumble? Have big tech companies developed an unstoppable business model?
The idea might not be
quite as crazy as it sounds.
Charlie Munger, Warren Buffett’s business partner, rarely
shows much mercy toward
investing beliefs he regards
as foolish. But when he was
asked at the February annual
meeting for shareholders in
his Daily Journal Co.
whether Google, Facebook,
Please see INVEST page B5
Big retailers notice a bump in sales around the time food-stamp funding is dispersed each month.
The Trump administration is proposing a food-box-delivery program that would be state-run.
Crypto Platform Seeks Licensing
BY DAVE MICHAELS
WASHINGTON—Coinbase, a
cryptocurrency firm, has approached U.S. regulators about
registering as a licensed brokerage and electronic-trading
venue, a move that comes as
regulators have waged an aggressive campaign to supervise the fledgling industry.
The San Francisco-based
startup, one of the world’s
largest platforms for trading
bitcoin and other cryptocurrencies, has met with Securities and Exchange Commission
officials in recent weeks about
registering its business with
the agency, according to people familiar with the matter.
The step would allow Coinbase
to expand the group of assets
it offers to include digital tokens that the SEC has argued
are securities and could put
pressure on other cryptocurrency trading venues to sub-
MICHAEL SHORT/BLOOMBERG NEWS
BY HEATHER HADDON
AND JESSE NEWMAN
Amazon.com Inc. is considering whether to use its Alexa
virtual assistant to start a person-to-person payments feature, according to people familiar with its strategy. The
move would push the retailing
giant into new competition
with PayPal Holdings Inc.’s
Venmo and big banks’ payments efforts.
The Seattle company, which
has expanded from online
commerce to cloud computing
to entertainment, is exploring
new ventures and capabilities
that could give it more power
in a payments industry dominated by banks and card networks such as Visa Inc. and
Mastercard Inc.
Among the options being
evaluated are ways in which
consumers could tell Alexa to
send money to a friend. The
idea is still in the early stages,
and the voice-activated device
would likely need more information about customers’ bank
accounts than it has now to
execute such money transfers,
the people said.
The review is part of a
broad effort at the company run by billionaire Jeff
Bezos to expand in banking
and finance. Amazon is working to add other payment options to Alexa, including allowing drivers of cars
equipped with Alexa to pay for
gas at a station via voice, according to the people.
Amazon is also looking at
ways to enter in-store payments, while talking with big
banks, including JPMorgan
Chase & Co., about building a
checking-account-like product.
Mr. Bezos gave employees a
mandate last year to push financial services as a key initiative, according to a person
Please see PAY page B2
San Francisco-based startup Coinbase is talking with the SEC
about registering as a brokerage and electronic-trading venue.
mit to U.S. oversight, the people said.
“It’s an early phase where
the industry leaders understand they have to live within
a highly regulated environment,” said Richard Levin, a
partner at law firm Polsinelli
PC who advises companies involved with digital currencies.
“They have to deal with the
SEC.”
A Coinbase spokesman declined to comment.
WHAT CLOSING BELL?
TD Ameritrade is the first retail brokerage to offer 24-hour trading, 5 days a week,
on select securities. A new kind of trading has arrived.
To learn more about 24-hour trading, visit tdameritrade.com/trade24-5.
All investments involve risk, including risk of loss. TD Ameritrade, Inc., member FINRA/SIPC. © 2018 TD Ameritrade.
“The assets that we do list
have all had some amount of
regulatory certainty,” Coinbase
President Asiff Hirji said on
CNBC on Thursday. “As soon
as there is more regulatory
clarity than there currently is
you would expect us to start
listing more assets.”
Companies that operate online trading platforms for
cryptocurrencies have positioned themselves as disrupters of traditional channels for
raising capital and exchange
trading. Trading in bitcoin and
other virtual currencies that
Coinbase offers, including
ether and litecoin, is virtually
untouched by U.S. market regulators.
But the growth of initial
coin offerings, or ICOs—in
which startups offer investors
a token in exchange for an investment—has added a new
opportunity that makes it
Please see COIN page B10
.
B2 | Saturday/Sunday, April 7 - 8, 2018
* *****
THE WALL STREET JOURNAL.
BUSINESS & FINANCE
BY ANNA WILDE MATHEWS
AND BRENT KENDALL
A federal court struck a
blow to Blue Cross and Blue
Shield insurers in high-stakes
litigation focused on how they
work together, finding that
some of their practices could
represent an automatic violation of federal antitrust law.
U.S. District Judge R. David
Proctor in Birmingham, Ala., in
a late Thursday ruling, said
challengers to the Blue insurers’
practices had presented evidence that the Blue insurers
have adopted competitive restrictions “which, considered
together, constitute a per se violation of the Sherman Act,”
the central federal law that bars
unlawful restraints of trade.
The ruling sets important
legal rules for a future
trial. The judge rejected some
of the Blue insurers’ central
arguments, and his finding of a
potential “per se,” or inherent,
violation could make it harder
for them to defend some of
their longstanding practices.
The case has a long way to
go. The judge left open at least
one potential defense for the
insurers’ actions, and the lawsuits against the Blue insurers
haven’t yet been certified to
proceed as class actions, an issue that could take several
more months to resolve.
Still, “both substantively
and tactically, it’s a very big
deal,” Tim Greaney, a professor
at the University of California
Hastings College of the Law,
mately have far-reaching effects. The Blue Cross and Blue
Shield insurers have been at
the heart of the U.S. healthcare system for decades. They
collectively cover roughly one
in three Americans, and they
are often the biggest players
in states’ individual and smallbusiness insurance markets.
The Blue Cross Blue Shield
Association licenses the Blue
A judge rejected some of the Blue insurers’
central arguments in high-stakes litigation.
said of the ruling. “It’s a pretty
serious blow to the Blues.”
In a statement, Scott Nehs,
the general counsel for the
Blue Cross Blue Shield Association, said it would appeal
and was “confident that we
will prevail.” He said the
group was “disappointed by
the court’s ruling with respect
to certain aspects of the BCBS
System,” but he called it “one
step in a lengthy process.”
The litigation could ulti-
brands to the 36 insurers that
use them. Companies typically
hold exclusive rights to the
Blue Cross and Blue Shield
names within a certain territory. Most of the Blue insurers
are nonprofits, often focused
on just one state, but the largest, Anthem Inc., offers Bluebranded plans in 14 states.
The Alabama litigation includes two major consolidated
antitrust lawsuits, one brought
by health-care providers and
the other by certain Blue insurer customers. The suits allege that the insurers are illegally conspiring to divvy up
markets and avoid competing
against one another, driving
up customers’ prices and
pushing down the amounts
paid to doctors and other
health-care providers.
The suits name all of
the Blue Cross and Blue
Shield companies as defendants as well as the Blue Cross
Blue Shield Association.
The judge, in his discussion
of possible antitrust violations,
cited a combination of certain
of Blue insurer practices, including dividing up markets
and certain limits on the insurers’ non-Blue business.
The Blue association has
said its licensing deals simply
codify longstanding trademark
rights and don’t violate the
law. The association also says
its arrangements increase competition by helping the Blue
companies ally together to go
up against national insurers.
Lawyer David Boies, who is
representing customer plaintiffs in the case, said the deci-
SUSAN MONTOYA BRYAN/ASSOCIATED PRESS
Ruling Hits Blue Insurers
It could be harder for the Blue insurers to defend some practices.
sion “is a critical step toward
ultimately resolving this case
and increasing competition in
the health-insurance market.”
Joe Whatley, a lead attorney
for health-care providers who
sued the Blue insurers, called
the ruling a “huge victory.”
If the Blue insurers lose the
case, it could force changes to
their business practices and expose them to considerable civil
liability and financial damages.
“This is a fairly definitive
GENE J. PUSKAR/ASSOCIATED PRESS
PAY
For smaller grocers and convenience stores, potential changes to the program come at a time when they can’t afford to lose sales.
Continued from the prior page
House Republicans say their
plan is aimed at creating opportunities for low-income
Americans to acquire the skills
needed to take part more fully
in the growing U.S. economy.
They foresee people leaving
the program as incomes rise,
with its lower costs reflecting
beneficiaries’ improved economic status.
House Democrats say it
could result in the loss of benefit eligibility for one million
people and an estimated $20
billion reduction in government spending over a decade,
according to aides. House Republicans dispute the figures,
saying they don’t reflect the
most recent proposals.
For grocers, convenience
stores and other food retailers,
potential changes to the foodstamp program, called the Supplemental Nutrition Assistance
Program, or SNAP, come at a
time when they can’t afford to
lose sales. Amazon.com Inc.’s
Whole Foods acquisition has
forced many grocers to sink
TIAA
Continued from the prior page
Chris Lee, vice president for finance and administration.
The Virginia colleges that
have signed up for their own
multiemployer retirement plan
have combined retirement account assets of around $500
million; they include Ferrum
College, Hollins University and
Sweet Briar College.
TIAA was hired as the Virginia plan’s record-keeper, but
few of its funds will be among
the investment choices for
participants, said Robert Lambeth, president of the Council
of Independent Colleges of Virginia, a group of 28 small colleges that set up the plan. Neither will TIAA be providing
investment advice, he said.
“We have redefined TIAA’s
role to strictly record-keeping,”
Mr. Lambeth said. He said his
group had “negotiated fees with
TIAA that are noticeably below
what the colleges were paying.”
Retirement-plan costs have
become a focus at many nonprofit entities partly because
profits into e-commerce options to compete. Deep discounters have fueled price
wars, further eroding thin margins.
“It’s well known that the
food industry operates on a 1%
profit margin,” said Alex Baloga, chief executive of the
Pennsylvania Food Merchants
Association, which represents
about 3,500 grocery and convenience stores. “There’s no
way to absorb any kind of decrease in sales. It’s just that
simple. It would be devastating.”
More than 52% of SNAP dollars, or $33 billion, were redeemed at big-box stores such
as Walmart Inc. and Target
Corp. last year, up from 47% in
2015, U.S. Department of Agriculture data show.
Big retailers routinely notice
a bump in sales around the
time states disperse SNAP
money to recipients each
month. Kroger Co.’s finance
chief,
Mike
Schlotman,
said, “We know that we’ll have
more people in the store, and
they’re likely to be in the store
longer.” A spokeswoman for
the grocery chain declined to
of lawsuits highlighting outsize
fees in some of these accounts.
The first of these cases to
go to trial—a suit brought two
years ago by participants in
the New York University retirement plan—is scheduled to
be heard by a judge later this
month. Plaintiffs contend NYU
breached its fiduciary duty by
having participants pay excessive record-keeping fees to
TIAA and Vanguard Group.
An NYU spokesman said the
suit was baseless.
Duke University was also
sued for breaching its fiduciary
duty to retirement-plan participants by selecting four recordkeepers, adding to costs. Duke
has said the design and management of the plan was proper.
No trial date has been set.
In February, Duke said that
as of next year, Fidelity Investments will be the sole recordkeeper of its $4 billion plan,
eliminating three other firms:
TIAA, Vanguard and Valic. Vanguard funds will still be offered
to Duke employees, but TIAA’s
funds will no longer be in the
mix, except for its fixed annuity, known as TIAA Traditional.
say how much it collects in
food-stamp spending, but said
it would push lawmakers to
maintain a “robust food-assistance program.”
Walmart generates roughly
$13 billion in annual sales from
SNAP transactions, accounting
for around 18% of the money
spent through the program nationwide.
Amazon, seeking to court
more low-income shoppers, is
among the retailers participating in a federal pilot to accept
SNAP dollars online, set to begin later this year. Representatives for Amazon, Walmart and
Target declined to comment on
the potential benefit reductions.
Some retailers serve regions
where more than one-third of
shoppers buy groceries with
food stamps, said Mr. Baloga of
the Pennsylvania Food Merchants Association. “We’re not
selling luxury sedans. We can’t
just raise prices to cover those
losses,” he said.
Reductions in SNAP enrollment, thanks to an improving
economy and state-imposed
time limits for benefits in 2016,
have weighed on corporate
earnings and stock prices in recent years, particularly among
dollar stores, which have been
expanding their food offerings.
Some food retailers were
alarmed by a separate proposal
by the Trump administration,
which in February suggested
shaving about $129 billion in
SNAP spending over a decade
by shifting food-stamp dollars
from benefit cards to a foodbox-delivery program that
would be state-run.
More than 16 million households would no longer receive
all of their benefits on cards
but instead get half in the form
of cereal, beans, canned fruits
and other food purchased by
the government through
wholesale channels instead of
at supermarkets.
Trade groups representing
food retailers publicly criticized any diversion of SNAP
dollars to the food box-program. They have been meeting
with administration officials.
Mr. Baloga said his organization has been actively lobbying
Pennsylvania’s congressional
delegation in opposition to the
food-box proposal and will be
monitoring Farm Bill details.
works or issuers, because
consumers
paying
through Amazon accounts are
usually doing it with a debit
or credit card. But the company can still gain by gathering more data about consumer habits and using its
size and leverage as a large
retailer to negotiate lower
fees from the card companies.
If Amazon can move more
transactions to its own rails
or get better deals from card
companies, it could save more
than an estimated $250 million in interchange fees each
year, Bain & Co. consultants
say.
Adding person-to-person
payments could also build
consumer loyalty around Alexa, which is locked in a battle against Google’s assistant.
As a stand-alone, the personto-person payments business
has generated far more buzz
than it has profits for Venmo
and its big-bank rival, known
as Zelle.
Payments
analysts
say Amazon’s foundation in
retail has helped it make
more progress in payments
than some rivals. “They focus
on supporting their core competence, which is selling
stuff,” said Thad Peterson, senior analyst who covers
emerging payment technologies at research firm Aite
Group.
In contrast with many rivals, Amazon Pay has largely
focused on online shopping, a
timesaving proposition for
consumers who frequently
abandon their shopping cart if
they have to type in creditcard information.
Now, Amazon is eyeing
brick-and-mortar
stores,
starting with its recent acquisition of Whole Foods.
As Amazon tries to get
more merchants to add
its payment option at the
checkout, including online,
some have resisted in part
due to concerns that the move
could remind consumers that
they could return to the online retail giant’s site to complete the purchase.
—Emily Glazer
and Peter Rudegeair
contributed to this article.
RAYMOND BOYD/GETTY IMAGES
SNAP
Continued from the prior page
briefed on the matter. The
company also restructured internally to add its digital wallet, Amazon Pay, to its team
that focuses on Alexa as part
of plans to make voice commands the next wave of commerce, according to other
people familiar with the company’s plans.
Last month, Amazon Pay
Vice President Patrick Gauthier pitched retailers at a conference on using Alexa to help
their customers pay. “We really invite all of you
who…want to invent the future to actually come and do
it with us,” he said.
Adding Amazon isn’t easy
for retailers, which have long
viewed the company as
the revenue-sapping rival.
Amazon also faces challenges on other fronts. Technology firms are facing increased scrutiny of late over
privacy practices. And President Donald Trump has singled Amazon out with
tweets in recent days that
criticized the company’s impact on traditional retailers and questioned whether it
pays enough in taxes.
Since starting about two
decades ago, Amazon has woven its way into consumers’
lives in new ways. Amazon’s
push into the once-sleepy
business of payments processing shows how it has been
transformed.
For years, Visa, Mastercard
and a few others battled for
market share of cards generally issued by banks. Now, a
different battle is playing out
with technology companies,
such as Amazon, Apple Inc.
and Alphabet Inc.’s Google,
trying to make payments, in
many cases on mobile devices,
easier for consumers while
adding to their already formidable revenue streams.
It still is early days, as U.S.
consumers haven’t flocked to
mobile wallets yet like users
in China and other economies
have. Also, Amazon’s initiatives are unlikely to have a
major impact on card net-
ruling on the most important
question of this case,” said Barak D. Richman, a professor
at Duke University School of
Law.
However, the new ruling also
held some positive aspects for
the insurers. The judge ruled
that another aspect of the Blue
companies’ cooperation, a program that involves working together to offer national insurance plans, wasn’t an automatic
antitrust violation.
The Milwaukee School of Engineering. A group of Wisconsin colleges created a multiemployer plan.
Mr. Peterson, of TIAA, said
the firm is pleased to continue
offering the product to Duke
participants. A Vanguard representative said the firm was confident that plan sponsors and
participants would continue to
entrust Vanguard with their
hard-earned retirement savings.
The New York attorney general is investigating allegations
made by former employees of
aggressive sales practices at
TIAA.
The Securities and Exchange Commission and Commodity Futures Trading Commission also have interviewed
former employees who filed
whistleblower complaints, the
former employees’ lawyer said.
“We are conducting a thorough review to ensure our actions and sales practices are
aligned with our mission and
values,” said the TIAA’s Mr. Peterson. “We cooperate fully
with our regulators.”
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | B3
* * * * * *
BUSINESS NEWS
Nine West
Files for
Chapter 11
Protection
JOSEPH WHITE/REUTERS
BY LILLIAN RIZZO
AND SOMA BISWAS
The electric-car maker is working to ramp up production at its assembly plant in Fremont, Calif. The suit involves asbestos-abatement work at the facility.
Tesla Contractor Sues Over Bill
BY TIM HIGGINS
A small Tesla Inc. contractor
has sued the electric-car maker
claiming it hasn’t been paid for
work at the Fremont, Calif., assembly plant where Tesla is trying to ramp up production of
the Model 3 sedan.
American Integrated Services Inc. claims Tesla hasn’t
paid $513,473 for work on lead
and asbestos abatement work
under a $3.57 million contract
signed in January 2016. It filed
the lawsuit Tuesday in a California state court in Oakland.
Tesla called the matter “a
minor commercial dispute.”
“We paid AIS for all the work
we authorized them to do,” a
Tesla spokesman said in a
statement Friday. “The addi-
tional payment they’re seeking
is for work that we did not authorize and that clearly was unnecessary. When we asked for
documentation showing that
Tesla had authorized this unnecessary work, they were unable to provide it.”
The claim comes as the auto
maker faces questions about its
cash level while it spends heavily to boost production of the
Model 3, a compact sedan that
is meant to transform Tesla
from a niche player into one
that sells its vehicles to the
masses.
Large automotive suppliers
are generally loath to file claims
against car makers and will
carry unpaid bills while a customer works through problems,
betting there will be future
business to win.
Small companies, however,
can’t always make that bet, or
aren’t willing to do so, especially if they don’t expect to do
further business with the car
company.
Dennis Virag, a manufacturing consultant who has worked
in the automotive industry for
40 years, said auto makers on
the whole try to pay vendors
quickly unless there is a dispute
about the quality or fulfillment
of a contract.
The California lawsuit claims
the contractor had an agreement to be paid within 30 days
of receipt of invoices.
“Tesla purchased furnishing
lead and asbestos abatement,
demolition and removal and
other environmental and reme-
diation services, goods, materials, labor, supplies and equipment from on or about Feb. 19,
2017, to present,” the lawsuit
said.
A lawyer for Wilmington, Calif.-based American Integrated
Services declined to comment,
citing ongoing litigation.
Production of the Model 3
began last July and has failed to
reach multiple milestones set
by Tesla, including one last
quarter to make as many as
2,500 sedans in a single
week. Tesla on Tuesday worked
to reassure investors about its
capital needs for the year, saying it was on track to reach a
weekly rate of about 5,000
Model 3 cars in about three
months, laying the ground work
for “strong positive operating
cash flow” in the third quarter.
“As a result, Tesla does not
require an equity or debt raise
this year, apart from standard
credit lines,” the company said
in the quarterly sales report.
The company finished last
year with $3.4 billion in cash on
hand after its negative cash
flow averaged about $1 billion a
quarter—a pace analysts have
said means the company would
need to raise more money this
year unless it significantly
boosts production.
Tesla has more than $10 billion in debt and its accounts
payable swelled to $2.39 billion
at the end of the year from
$1.86 billion a year earlier.
—Andrew Scurria
and Lisa Schwartz
contributed to this article.
Retailer Nine West Holdings Inc., best known for selling women’s shoes and accessories, filed for chapter 11
protection with a deal to sell
its Nine West and Bandolino
footwear and handbag businesses to a licensing firm.
The filing in U.S. Bankruptcy Court in New York
came as Nine West faced debt
maturities and has seen its
revenue dwindle.
Authentic Brands agreed to
pay $200 million for the intellectual property of the Nine
West, Bandolino, and associated brands plus some working-capital assets, Nine West
Chief Executive Ralph Schipani
said in court papers.
The deal comes after Nine
West, which is owned by private-equity firm Sycamore
Partners, recently closed its
remaining 71 remaining stores.
Nine West’s sales have
fallen 37% since 2015.
Retailers that seek bankruptcy protection and liquidate their stores often find a
second life through their
brand. Aéropostale, Frederick’s, American Apparel, the
Limited and others have sold
their brands as part of bankruptcy-run auctions after closing their stores.
Sycamore Partners has also
been an acquirer of bankrupt
brands, including the Limited
and Coldwater Creek.
Authentic Brands, backed
by private-equity firm Leonard
Green & Partners, has been acquisitive, not only among
bankrupt brands. In March,
Authentic bought Nautica’s
brand from VF Corp.
Nine West, Sycamore and
Authentic Brands didn’t immediately respond to requests for
comment.
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B4 | Saturday/Sunday, April 7 - 8, 2018
* ******
THE WALL STREET JOURNAL.
BUSINESS & TECHNOLOGY
Tests Dash Hopes for Cancer Treatment
Incyte and Merck
drugs in combination
show disappointing
results in clinical trial
BY PETER LOFTUS
Incyte Corp. said its experimental cancer drug failed in a
closely watched clinical trial
that paired it with Merck &
Co.’s Keytruda, striking a blow
to combination therapies and
sending Incyte and other biotech stocks plummeting Friday.
Incyte’s drug, epacadostat,
was previously viewed as one
of the more promising of the
next generation of cancer drugs
designed to work by harnessing
the patient’s own immune system to destroy tumor cells.
Merck,
Bristol-Myers
Squibb Co. and other companies sell older types of immunotherapies that have improved
treatment of certain cancers including the skin cancer melanoma and lung cancer. The market for these drugs is booming:
Testing Combos
Drug companies and researchers are testing cancer immunotherapy
drugs in combination with other treatments in hundreds of clinical trials.
Combination trials in progress involving...
Merck's Keytruda (pembrolizumab)
399
Bristol-Myers's Opdivo (nivolumab)
340
AstraZeneca's Imfinzi (durvalumab)
161
Roche Holding's Tecentriq (atezolizumab)
124
Pfizer's and Merck KGaA's Bavencio (avelumab)
32
Others
49
THE WALL STREET JOURNAL.
Source: Cancer Research Institute
Merck’s global Keytruda sales
more than doubled to $3.8 billion last year.
But they don’t work for every patient, so companies have
been racing to test whether
combining older immunothera-
pies with other drugs could
further improve patient survival.
At least 1,100 clinical trials
are testing drugs like Keytruda
in combination with other
drugs to treat cancer, according
to a December report by researchers from the Cancer Research Institute, a nonprofit focused on immunotherapy
research.
Some combinations have
had positive results in clinical
trials, including the use of
Keytruda plus chemotherapy in
lung-cancer patients, and Bristol’s Opdivo and Yervoy in melanoma.
But other combinations have
disappointed, including a study
testing two AstraZeneca PLC
immunotherapies in lung cancer.
Incyte’s drug, known as an
IDO1 inhibitor, is designed to
block an enzyme that tumor
cells exploit to escape destruction by the body’s immune system. Merck’s Keytruda works in
a different way, blocking a protein called programmed death
receptor 1, or PD-1, on immune
cells.
The combination showed
promise in an earlier, smaller
study. Based on those results,
the companies started a bigger
study in 2016 comparing the
combination of epacadostat
and Keytruda with Keytruda
alone in more than 700 patients with advanced melanoma.
Merck and Incyte said Friday that the combination didn’t
significantly extend progression-free survival, or the time
from the start of treatment until disease progression or
death. The companies said the
combination was unlikely to
improve overall survival among
patients. Researchers stopped
the study based on a recommendation by an independent
committee monitoring the trial
data.
The result “is obviously disappointing and it has a negative impact on the probability
of success of the other studies
combining epacadostat” with
anti-PD-1 drugs, Incyte Chief
Executive Herve Hoppenot said
on a conference call with analysts.
Merck and Incyte are testing
the combination in other types
of tumors including lung and
bladder cancers. Mr. Hoppenot
said Incyte would discuss with
Merck whether to make
changes to these studies in
light of the failed melanoma
study. Incyte also is testing its
drug with Bristol-Myers’s Opdivo to treat certain tumors.
Bernstein analyst Tim Anderson wrote in a note to clients that the combination of an
IDO-blocking drug with an antiPD-1 drug is unlikely to work in
other tumor types, since melanoma is considered one of the
more susceptible tumors to immune-boosting treatments.
Incyte shares fell 23% to
$64.02. Merck shares declined
2.2% to $53.36.
Shares of NewLink Genetics
Corp., which is developing a
drug similar to Incyte’s, fell
43% to $4.20.
NewLink said Friday that in
light of the Incyte news it will
conduct a review of its clinical
programs for its IDO inhibitor,
indoximod.
Shares of Corvus Pharmaceuticals Inc., which is developing several cancer immunotherapies, fell 7.2% to $10.12.
BY ANDY PASZTOR
NASA and Boeing Co.
agreed to turn the initial test
flight of the company’s commercial crewed capsule into an
operational mission, one of
several recent signs officials
are hedging their bets on when
U.S. spacecraft will start regularly ferrying astronauts to the
international space station.
The disclosure by the National Aeronautics and Space
Administration suggests a previously planned two-person
flight, slated for November
2018, is now likely to occur in
2019 or 2020 and would
likely carry one additional
crew member along with extra
supplies. Instead of staying for
two weeks as originally envisioned, NASA said the expanded crew could stay at the
station for as long as six
months conducting experiments and carrying out maintenance tasks.
The agency’s agreement to
use Russian rockets and capsules to carry astronauts to
the international laboratory
ends in late 2019.
The agency’s deal to
use Russian rockets
and capsules is set to
end in late 2019.
That is prompting NASA
leaders to seek contingency
plans to carry American astronauts into orbit—and keep
them there for extended periods—in the event U.S. providers aren’t ready to assume
routine transportation responsibilities by the deadline. Maintaining a continuous
U.S. presence on the international space station is important to NASA.
Even after a successful
crewed test flight, it could take
NASA several months or longer to authorize routine missions, according to outside experts,
agency
advisory
committees and senior NASA
officials. The process could
leave the U.S. scrambling for
stopgap measures unless alternate options are put in place
relatively soon.
On its website, NASA said it
is updating its existing contract with the company and
“may evolve flight test strategy” for Boeing’s Starliner
capsule, in anticipation of validating the spacecraft’s safety
and authorizing “regular post-
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Boeing was more direct. In
a release, the company said “it
was clear” that “we needed to
provide NASA with additional
flexibility to ensure the station
remains fully staffed and fully
operational” until U.S. capsules
achieve a regular cadence of
missions.
In February, NASA’s top official in charge of the crewed
exploration programs, William
Gerstenmaier,
telegraphed
such moves were under active
consideration but stopped
short of announcing a decision.
On the web posting, Mr.
Gerstenmaier said the contract
modification “provides NASA
with additional schedule margin if needed,” but further
technical reviews are anticipated.
BOEING
NASA, Boeing to Launch Capsule Test-Flight Plan
An artist’s concept of a Boeing CST-100 Starliner in Earth orbit.
Dick’s CEO Spurs Change
In Approach to Gun Sales
BY SARA GERMANO
Shortly after a woman
opened fire at YouTube headquarters in California on Tuesday, executives at Dick’s Sporting Goods Inc. in suburban
Pittsburgh logged on to their
internal sales database to
search for the attacker’s name.
“Every time there’s a shooting, the first thing that we do
is we go through all the records
to find out who the shooter
was, and did they buy the gun
from us,” said Dick’s Chief Executive Edward Stack. “It really
puts a pit in our stomach.”
The YouTube shooter hadn’t
purchased any firearms at
Dick’s, Mr. Stack said. But a
similar search in February after
the Parkland, Fla., school shooting revealed that the alleged
gunman had bought a weapon
from the national chain, though
it wasn’t used in the shooting.
For Mr. Stack, 63 years old,
the exercise is part of the new
reality of being in the gun business. It contributed to his decision to tighten Dick’s policy in
the wake of the Parkland attack,
which left 17 dead and more than
a dozen injured. The retailer
halted sales of any firearms to
people under 21 at all of its 845
Dick’s and Field & Stream stores,
and stopped selling assault-style
weapons at Field & Stream. The
company had already ended
sales of assault-style weapons at
its flagship Dick’s stores.
With that decision, which was
quickly followed by similar
moves from Walmart Inc. and
Kroger Co., Mr. Stack emerged as
the corporate face of the fight
for stricter gun controls.
In the five weeks since, he
said he has met with families
of those affected by the Parkland shooting, lobbied lawmakers in Washington and received phone calls and emails
from thousands of customers
on all sides of the issue.
The company said last
month that the decision had
hurt traffic and retail sales, exacerbating challenges for its
hunting and gun business.
While the company doesn’t
break out firearms sales, its entire hunting category made up
roughly $1 billion of Dick’s $8.6
billion in revenue last year.
Mr. Stack said the private sector can be a force for change in a
debate that so far hasn’t led to
significant legislation.
“In order to really spur this
conversation,” he said, it requires “somebody who understands this.” He believes that
Dick’s, as a gun seller, can offer
a distinct perspective.
A gun owner himself, Mr.
Stack said he wants to see the
changes instituted at Dick’s and
Field & Stream stores become
law: an outright ban on assault-
style weapons, no sales of highcapacity magazines and an increase in the minimum gunbuying age to 21.
So far, however, the shortterm prospects for movement in
Washington aren’t good, Mr.
Stack said. “I don’t think there’s
going to be real meaningful
change from what I’ve seen on
the Hill,” he said, declining to
name which members of Congress he met with.
A spokeswoman for survivors
of the Parkland school shooting
confirmed he visited with families in Florida in recent weeks.
Despite its recent moves,
Dick’s has been subject to criticism from advocates of tighter
gun controls. On Thursday, the
world’s largest money manager,
BlackRock Inc., said Dick’s was
among the gun-selling retailers
that will be ruled out of some of
its exchange-traded funds.
Mr. Stack became president
and CEO of his father’s thentwo-store business in 1984 and
expanded it into a nationwide
chain. He remains the controlling shareholder, an ownership
structure that he said gives the
company an advantage when it
comes to taking a social stance.
For the latest decision, Mr.
Stack consulted with his top
managers and the board. One
group he didn’t consult: vendors.
“They’re not terribly happy, and
I understand that,” he said.
CJ GUNTHER/EPA/SHUTTERSTOCK
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866.251.2319
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A Dick’s Sporting Goods store in Danvers, Mass. The retailer’s chief executive has tightened age
restrictions on gun purchases and halted sales of assault-style weapons at Field & Stream stores.
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | B5
* * * *
WEEKEND INVESTOR
TAX REPORT | By Laura Saunders
In Overhaul, Top Earners to Pay Bigger Share
One of the
least discussed parts
of America’s
income tax is
how progressive it is, and the tax overhaul didn’t change that fact.
In 2018, top earners will pay
a higher share of income
taxes.
The individual income tax
matters—a lot—because it is
the largest single source of
U.S. revenue. And its share
has risen in recent years. For
2018, it could raise 50% of
total federal revenue, according to estimates from Congress’s Joint Committee on
Taxation, up from about 48%
last year.
So who pays what share
of this tax?
Internal Revenue Service
data aren’t available until
long after people file, so estimates for 2017 and 2018
come from the Tax Policy
Center, a nonpartisan research group.
They divided about 175
million American households
into five income
tiers of roughly 65 million
INVEST
Continued from page B1
Apple Inc. and Amazon are
overvalued, he said, “I don’t
know. Next question.”
Traditionally, the bigger
companies have gotten, the
harder it has become for
them to keep expanding at
the same rate. For today’s
leading innovators, however,
growing might not have to
mean slowing. Unfettered by
the costs of raw materials or
the burdens of manufacturing, distribution and advertising, these companies plan
decades ahead, rather than
fixate on hitting Wall
Street’s quarterly targets.
Consider Amazon. Over
the three years ended Dec.
people each. The income includes earnings from wages
and investments plus untaxed amounts, such as from
health coverage. These additions nearly double the income of people in the lowest
tier and add about 20% for
those in the highest tier.
The results show how
steeply progressive the U.S.
income tax remains. For
2018, households in the top
20% will have income of
about $150,000 or more and
52% of total income, about
the same as in 2017. But they
will pay about 87% of income taxes, up from about
84% last year.
By contrast, the lower
60% of households, who have
income up to about $86,000,
receive about 27% of income. As a group, this
tier will pay no net federal
income tax in 2018 vs. 2% of
it last year.
After the income tax, the
most important revenue raisers are for social insurance,
such as Social Security and
Medicare. They will provide
about 34% of the total tax
take this year, according to
the Joint Committee on
Taxation. Corporate taxes
will account for 7% of revenue, down from 9% in 2017.
The rest of the total comes
from excise taxes, estate and
gift taxes, and other sources
such as customs duties.
The Tax Policy Center also
offers a closer look at the income tax for those in the top
quintile, who earn anywhere
from $150,000 to $100 million and up.
Roughly one million
households in the top 1% will
pay for 43% of income tax,
up from 38% in 2017. These
filers earn above about
$730,000.
According to Roberton
Williams, an income-tax specialist with the Tax Policy
Center, the share of taxes
paid by the top 5%
will rise despite the fact that
people in it were the largest
beneficiaries of the overhaul’s tax cut, both in dollars
and percentages.
To be sure, this analysis
doesn’t include the flowthrough effects of corporatetax cuts, which benefit
higher earners more than
lower earners, or the doubling of the estate-tax exemption to about $11.2 million per person. Neither levy
is part of the individual income tax.
Why are income taxes
negative for the 77 million
households in the bottom
two tiers, which earn 13% of
income? In recent decades,
Congress has chosen to funnel benefits for lower earners through the income tax
rather than other channels
such as federal programs.
Some of these, such as the
earned-income tax credit for
the low-income workers,
make cash payments to filers
who don’t owe income tax.
The tax overhaul further
lowered the share of income
tax for people in these tiers,
in part because it nearly
doubled the standard deduction and expanded the tax
credit for children under the
age of 17.
People in the lower tiers
do owe other federal taxes,
such as for Social Security
and Medicare. If these tax
payments are included, their
share of federal taxes paid
turns positive.
The share of tax paid by
the top 20% of Americans
also changes when social-in-
surance levies are included.
It drops to about 67% of federal taxes from roughly 87%
of income taxes.
31, 2011, its revenue more
than doubled, to $48 billion.
Over the next three years, its
sales nearly doubled again,
to $89 billion. Then, over the
three years ended Dec. 31,
2017, Amazon’s revenue doubled yet again, to $178 billion.
Investors don’t know exactly how to price such rapid
growth. Although the cash
Amazon generated from operations increased more than
10-fold from 2008 through
2017, the company plowed
most of it back into expanding the business. So net income rose only less than
fivefold, with enormous fluctuations along the way.
James Anderson, head of
global equities at Baillie Gifford & Co. in Edinburgh,
thinks Amazon, along with
some other giants including
Chinese firms Alibaba Group
Holding Ltd. and Tencent
Holdings Ltd., “live in a permanent state of revolution.”
the long run,” says Mr. Anderson, citing research by finance professor Hendrik
Bessembinder of Arizona
State University. That study
shows that the stock market’s entire return over time
has come from fewer than
4% of all stocks.
Of course, history also
suggests that every firm that
was expected to dominate indefinitely—from RCA in the
1920s to International Business Machines Corp. in the
1980s to Nokia Corp. in the
1990s—has ended up slipping.
And the idea of virtually
limitless growth flies in the
face of much of human experience. Trees can’t grow to
the sky because they would
be bent and crushed under
their own weight first.
The twin beliefs that highfliers must fall to earth and
that underappreciated stocks
should rise again are at the
heart of value investing. It’s
conceivable that those principles may be less relevant
today, when powerful technology companies can pulverize entire industries.
Nevertheless, as companies grow, “the more scale
you have, the less nimble
you become,” says John
Linehan, portfolio manager
of the $22 billion T. Rowe
Price Equity Income Fund.
Despite all the recent growth
of the tech giants, he says, “I
don’t think that’s changed.”
In a classic article,
“Growth Stocks and the St.
Petersburg Paradox,” finance
scholar David Durand
warned that at ultrahigh
growth rates over long horizons, even slight shortfalls
lead to enormous differences
in end results. That makes
the shares of such companies extraordinarily volatile.
With Amazon and Netflix
trading at more than 200
times their net profits, and
many of the other new tech
giants at more than 40 times
earnings, they aren’t exempt
from that iron law.
It’s impossible to know for
sure whether companies like
Amazon have broken free
from the traditional limits to
growth. Unless you can hold
them for a decade or more,
as Mr. Anderson likes to, you
probably will get shaken out
before you can even find out.
4%
Share of all stocks that drive
market’s returns over time
Baillie Gifford, with $290
billion in assets, had a total
of more than $22 billion in
Amazon, Alibaba and Tencent as of year-end 2017.
“A small set of superior
companies drive returns in
A Bigger Slice
Americans with lower earnings will pay a smaller share of income tax
next year, while those with higher earnings will pay a larger share.
Income
Share of income tax
Share of
group
total income
2017 2018
0-20%
Up to $25,000
20-40%
$25,000 to $48,000
40-60%
$48,000 to $86,000
60-80%
$86,000 to $150,000
–2.1%
–2.5
–1.1
–2.0
5.3
4.3
14.3
13.2
83.6
86.9
80-100%
Above $150,000
80-90%
$150,000 to $217,000
90-95%
$217,000 to $310,000
95-99%
$310,000 to $730,000
13.4
12.7
11.2
11.2
21.0
19.6
99-100%
38.0
43.3
Above $730,000
99.9-100%
Above $3.2 million
18.9
22.0
4.4%
4.4
8.7
8.7
14.2
14.2
20.8
20.7
52.1
52.2
14.2
14.0
9.8
9.7
12.9
12.7
15.3
15.9
7.4
7.6
Note: Income ranges are rounded. The top 1% includes the top 0.1%.
Source: Tax Policy Center
THE WALL STREET JOURNAL.
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B6 | Saturday/Sunday, April 7 - 8, 2018
THE WALL STREET JOURNAL.
* ***
BUSINESS NEWS
Bank Battle Tests Kiev’s Resolve
CSX
Reports
Payout
For Late
CEO
Ukraine’s takeover of
PrivatBank measures
the state’s will to
challenge its tycoons
BY JAMES MARSON
AND MAX COLCHESTER
BY THEO FRANCIS
EFREM LUKATSKY/ASSOCIATED PRESS
KIEV—When Ukraine’s finance minister went to oversee the nationalization of the
country’s biggest bank in December 2016, he took with him
a team of bankers—and a security detail of special-forces
operatives.
That month, PrivatBank
was rescued with an injection
of public money that has since
grown to around $5 billion.
But one of the bank’s former
controlling shareholders, Ihor
Kolomoisky, a local metals-tomedia tycoon who once
funded a pro-government militia, isn’t letting go without a
fight.
The tug of war over PrivatBank is a key test for Ukraine
as it tries to stabilize its finances and satisfy demands
for reform from the U.S. and
Western governments that
helped finance the country
amid a Russia-backed insurgency in its east.
A report commissioned by
Ukraine’s central bank from
Kroll, the corporate-investigations and risk-consulting firm,
has alleged the former controlling shareholders, Mr. Kolomoisky and another businessman, Gennadiy Bogolyubov,
secretly and illegally extracted
funds from PrivatBank to finance their business interests,
according to Ukrainian officials. Messrs. Kolomoisky and
Bogolyubov each held about
45% of PrivatBank.
Mr. Kolomoisky and Mr. Bogolyubov said the National
Bank of Ukraine orchestrated
the seizure of PrivatBank for
political reasons by raising
capital requirements and
spreading false rumors about
the lender’s health, according
to their spokesman.
“Audits by respected international organizations over
the past ten years have consistently failed to find any evidence of fraud,” the spokesman said in a statement. Mr.
Kolomoisky has launched lawsuits in Ukraine challenging
As its rivals shut down, PrivatBank increased deposits to about one-third of Ukraine’s total by the time it was nationalized in 2016.
the nationalization. Mr. Bogolyubov has filed notice of a
claim in a U.K. court seeking
compensation for the alleged
unlawful expropriation.
Prosecutors said they are
examining the allegations of
fraud leveled by the government in Kiev. Meanwhile,
PrivatBank’s new management
last week filed a legal claim
seeking $3 billion in damages
from PricewaterhouseCoopers’ Cyprus and Ukrainian
units for breach of duties in
the accounting firm’s auditing
of the bank. PwC’s Ukraine
unit said in a statement that it
would defend its position.
Ukrainian government figures and Western officials say
the PrivatBank case is a test of
whether pro-Western President Petro Poroshenko’s administration is willing and
able to win a battle against
powerful tycoons.
“If we solve this problem,
then we can really say that
Ukraine has changed,” said Kateryna Rozhkova, deputy governor of the National Bank of
Ukraine. “It’s too conspicuous
to brush it under the carpet.”
After the 2014 revolution,
the central bank set about
cleaning up a banking sector
beset by bad loans and inadequate capital. Backed by the
International Monetary Fund,
which has lent billions to
Ukraine, regulators closed
nearly 80 lenders. As its rivals
shut down, PrivatBank increased its share of the country’s deposits to around onethird by the time it was
nationalized.
Mr. Kolomoisky’s clout was
also growing. As Russia
whipped up a separatist insurgency in eastern Ukraine in
spring 2014, Mr. Kolomoisky,
whose interests include the
country’s main airline and a
leading television channel, was
appointed a regional governor
and funded a government-controlled militia.
But by 2015 PrivatBank was
facing increased scrutiny. The
NBU said stress tests showed
it was undercapitalized.
Regulators said they cut a
deal with the former controlling shareholders: help restructure the loan book with
some of their own assets after
the nationalization and all allegations of wrongdoing would
be forgotten. Mr. Kolomoisky
and Mr. Bogolyubov signed a
letter agreeing to hand the
bank to the Finance Ministry,
according to a copy of the letter. Their spokesman declined
to comment on the letter.
In 2016, the government
started pouring money into
the bank to cover what it has
said was a $5.5 billion hole in
its balance sheet.
But the former controlling
shareholders didn’t hand over
any cash or assets, Finance
Ministry and central-bank officials said. Instead, they
launched a campaign saying
the government unfairly took
control of PrivatBank.
In December 2017, PrivatBank’s new management filed
suit in a U.K. court seeking to
recover more than $2.5 billion
from the former controlling
shareholders.
A summary of Kroll’s report
published in January by the
NBU said that PrivatBank had
been subjected to a “largescale and coordinated fraud.”
The report said that 95% of
borrowing from PrivatBank
was to parties related to
Messrs. Kolomoisky and Bogolyubov, without stating a
time period. A spokesman for
Messrs. Kolomoisky and Bogolyubov said the claims “are
consistent with a long-term
campaign of public defamation” against the two men.
CSX Corp. disclosed compensation totaling $151 million
for deceased railroad executive Hunter Harrison, the biggest CEO pay package for 2017
reported so far by a large U.S.
company. But his payout isn’t
what it seems.
About $116 million of his
package—stock options that
were to vest over four years—
vanished with Mr. Harrison’s
death on Dec. 16, the company
said in its annual proxy statement filed with the Securities
and Exchange Commission.
The remaining $35 million
would still leave Mr. Harrison
with the 10th-highest pay for
the year reported thus far by
S&P 500 companies.
Some $29 million of Mr.
Harrison’s remaining compensation reflects payments CSX
agreed to make on behalf of
activist investor Mantle Ridge,
which brought the 72-year-old
railroad veteran on board in
March as part of a bid to revamp the company despite
concerns about his health.
CSX also reimbursed Mantle Ridge for a $55 million
payment made to Mr. Harrison before he became CEO.
That isn’t included in the pay
package reported to the SEC.
Counting that sum, Mr. Harrison’s compensation was more
than $90 million last year, or
No. 2 among big-company
CEOs to date.
In its proxy filing, CSX said
the 2017 compensation package was unique and necessary
to secure Mr. Harrison’s
“proven leadership.”
Investors approved the $84
million in payments tied to
Mantle Ridge by a wide margin in a June shareholder
vote.
A spokesman for CSX declined to comment beyond details disclosed in its proxy.
Contest for Driller Muddies Mexican Reform Europeans
BY ROBBIE WHELAN
The price collapse of Mexico's
benchmark heavy crude oil
prompted state-run Pemex to
restructure dozens of drilling
contracts.
BY NINA TRENTMANN
Mexican crude-oil prices
per barrel, monthly
$120
100
80
SUSANA GONZALEZ/BLOOMBERG NEWS
MEXICO CITY—A legal battle over a small oil-drilling
company is testing Mexico’s
promises of greater transparency and competition made
five years ago when the country opened its oil industry.
The company, Oro Negro,
filed for bankruptcy protection
in Mexico last year after
slumping
crude
prices
prompted state oil company
Petróleos Mexicanos to slash
the day rates it pays drillers,
and eventually cancel Oro Negro’s contracts.
Now, U.S. shareholders of
closely held Oro Negro accuse
Pemex of fraud and discrimination in an arbitration complaint against Mexico under
the rules of the North American Free Trade Agreement. The
investors argue Pemex improperly terminated the company’s
contracts, gave preferential
treatment to rival drilling firm
Seamex and conspired with
holders of Oro Negro bonds to
put the company out of business—allowing bondholders to
seize its rigs—and hand its
contracts to its competitor.
The complaint says that because Pemex is a government
entity, its actions violate Nafta
rules guaranteeing equal treatment for Mexican and U.S. investors and prohibiting the expropriation of assets by the
state. Oro Negro’s investors
seek $700 million in damages
through a Nafta arbitration
panel.
The company’s bondholders
say Oro Negro rejected a restructuring proposal that
would have kept it solvent, and
characterize the Nafta complaint as a last-ditch attempt
by shareholders to salvage
some value in the company by
pressuring Pemex into a settlement. These creditors are suing Oro Negro in a New York
federal court to seize control of
its five jackup drilling rigs used
to extract oil in the shallow
waters of the Gulf of Mexico.
The disputes over Oro Negro
come against the backdrop of
Shop for
U.S. Firms
Over a Barrel
60
40
20
0
’10
’15
’18
Source: FactSet
An Oro Negro drilling rig operated by state oil company Pemex off Mexico’s eastern coast in 2014.
THE WALL STREET JOURNAL.
Mexico’s historic energy overhaul, which in 2013 opened the
sector to private and foreign
investment. The reform also
sought to improve business
practices and contracting
transparency, said George
Baker, an energy analyst in
Houston.
The arbitration case is important because Pemex’s service contracts are still given
with no public oversight. “Conflicts only come to light when
someone makes an international incident of the matter,”
Mr. Baker said.
Pemex has faced questions
from investors and lawmakers
for years about the transparency of its contracting, and is
now drawing public scrutiny
over a regionwide corruption
scandal involving contracts
granted to Brazilian construction giant Odebrecht. Pemex
declined to comment on the
matter.
Oro Negro is led by Gonzalo
Gil, a Stanford-trained banker
and son of former Mexican finance minister Francisco Gil
Díaz.
Seamex is jointly owned by
Fintech Investments Ltd.,
longstanding ties to the firm,
said Adrián Lajous, who
headed the state oil firm from
1995 to 1999.
Oro Negro, on the other
hand, he said, “are newcomers
to the industry. They have no
experience. They thought this
was like investing in real estate.”
Mr. Gil disputes the characterization, saying that Oro Negro hired experienced engineers and operators from the
outset of the company.
Representatives of Seadrill
and of Fintech, Mr. Martínez’s
company, denied they were involved with any collusion with
Pemex over Oro Negro and
Seamex. They said their contracts are unrelated to Oro Negro’s and attributed their relatively beneficial financial terms
to industry expertise and good
negotiation. Mr. Martinez
wasn’t made available to comment.
Bondholders have balked at
a proposal from Mr. Gil to convert their debt to equity. They
are suing to secure Oro Negro’s
rigs as collateral and redeploy
them under new management,
Mr. Leand said.
which is controlled by David
Martínez, a London-based
Mexican investor who specializes in distressed assets, and
Seadrill Ltd., an offshore drilling giant with offices around
the world. Seadrill’s chairman
is Norwegian billionaire John
Fredriksen, who is also an Oro
Negro bondholder and has representation on the bondholder
committee negotiating with
Oro Negro.
Oro Negro shareholders say
Mr. Fredriksen, through his position on the bondholders committee, is trying to foreclose on
the company’s drilling rigs and
take over its contracts. The adviser to that committee, New
York-based investment banker
Paul Leand, sits on Seadrill’s
board. Mr. Fredriksen wasn’t
made available to comment.
“Our main competitor is
also our primary creditor, and
the culprit of our financial distress is also responsible for
providing privileged terms to
our main competitor,” Mr. Gil
said.
The Nafta arbitration request is meant to send a message to Pemex about the importance of offering investors a
more-level playing field, said
Fred Warren, a 78-year-old
California venture capitalist
who invested $10 million in
Oro Negro.
Similar arbitration cases
have ended in settlements. Last
year, Pemex entered into a
$435 million settlement with a
contractor owned by U.S. engineering firm KBR Inc. over canceled construction contracts
after it notified the Mexican
government of its intent to arbitrate.
Contracts reviewed by The
Wall Street Journal show Pemex granted Seamex better
terms than it gave Oro Negro
for equivalent drilling projects,
including higher service fees,
performance bonuses and a
clause that prohibits Pemex
from unilaterally canceling its
contracts.
A Pemex spokesman said
the firm didn’t give preferential treatment to Seamex, and
argued the entire oil-services
industry suffered when oil
prices fell. Pemex declined to
comment on the Nafta complaint.
Pemex has “a long tradition”
of favoring contractors with
European executives are
targeting U.S. companies as a
brighter economic landscape
at home and abroad boosts
buyer confidence.
Lower taxes and favorable
foreign exchange rates are increasingly
enticing
for
France’s JCDecaux SA, which
has looked at U.S. rivals as potential acquisition targets for
more than a decade.
“The change in the U.S. tax
rate will make it more attractive for us to pursue such a
deal,” said finance chief David
Bourg.
European companies spent
$47.26 billion on U.S. targets
since the beginning of the year,
through April 5, according to
Dealogic. That is the highest
Companies are eager
buyers thanks to
strong cash reserves
and favorable rates.
deal value for this period since
2006 and up from $37.59 billion worth of deals struck in
the same period last year.
The total number of European acquisitions of U.S. companies declined to 113 in that
period of 2018 from 172 in that
part of 2017, according to Dealogic, an indication that this
year’s deals are often larger.
The drop in the U.S. corporate tax rate to 21% makes U.S.
businesses more alluring to
European buyers, as does the
pullback in the U.S. dollar,
which is down nearly 15%
against the euro since Dec.
2016.
European companies are eager buyers because of strong
cash reserves, the result of
years of conservative spending.
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | B7
* * * *
MARKETS DIGEST
Dow Jones Industrial Average S&P 500 Index
23932.76
t 572.46
or 2.34%
Trailing P/E ratio 25.28
P/E estimate *
16.34
Dividend yield
2.23
All-time high
26616.71, 01/26/18
Last
2604.47
t 58.37
or 2.19%
21.07
17.70
2.36
65-day moving average
Session high
t
DOWN
Session open
t
Close
UP
Close
Open
Session low
Trailing P/E ratio *
P/E estimate *
Dividend yield
Year ago
25.04
16.88
1.96
Last Year ago
6915.11
t 161.44
or 2.28%
24.63
18.32
1.97
Trailing P/E ratio * 25.33
P/E estimate *
19.68
Dividend yield
1.06
26.11
20.35
1.10
A look at how selected global stock indexes, bond ETFs, currencies and
commodities performed around the world for the week.
Stock
Index
Currency,
vs U.S. dollar
All-time high:
7588.32, 03/12/18
All-time high
2872.87, 01/26/18
Current divisor
0.14523396877348
Track the Markets: Winners and Losers
Nasdaq Composite Index
Last Year ago
25800
2800
65-day moving average
7500
25000
2750
7300
24200
2700
7100
23400
2650
22600
2600
6700
21800
2550
6500
65-day moving average
21000
6900
6300
2500
Mar.
Feb.
Feb.
Mar.
Mar.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Latest
Close
Low
Trading Diary
Net chg
% chg
High
52-Week
Low
% chg
% chg
YTD 3-yr. ann.
Dow Jones
24434.40 23738.20 23932.76 -572.46
-2.34
26616.71 20404.49
15.9
-3.2
10.2
Transportation Avg 10403.33 10036.54 10146.37 -307.29
-2.94
11373.38
8783.74
11.4
-4.4
5.8
774.47
647.90
-1.1
-4.4
5.0
29630.47 24125.20
757.37
610.89
10.7
13.2
-2.4
-1.4
7.3
6.8
5805.15
5353.59
17.6
18.7
0.2
0.6
12.0
13.9
Industrial Average
699.09
Utility Average
Total Stock Market
Barron's 400
689.92
691.59
-0.69
-4.84
-2.14
27544.18 26823.25 27011.29 -589.75
715.06
694.82
700.91 -15.39
-2.15
Nasdaq Stock Market
Nasdaq Composite
7066.64
Nasdaq 100
6587.36
6877.76
6402.03
6915.11 -161.44
6433.21 -161.62
-2.45
S&P
500 Index
2656.88
2586.27
2604.47 -58.37
-2.19
2872.87
2328.95
10.6
-2.6
7.8
MidCap 400
SmallCap 600
1887.90
951.43
1840.22
927.14
1854.08 -37.24
934.29 -17.18
-1.97
1995.23
979.57
1681.04
815.62
8.7
12.9
-2.4
-0.2
6.5
8.9
1541.07
1502.63
1513.30 -29.63
-1.92
1610.71
1345.24
10.9
-1.4
6.3
12552.47 12263.93 12349.11 -222.83
-1.77
13637.02 11324.53
7.9
-3.6
3.8
1.6
Other Indexes
Russell 2000
NYSE Composite
552.36
538.51
542.22 -10.14
NYSE Arca Biotech
4346.39
4224.82
4257.84 -139.70
NYSE Arca Pharma
531.16
517.45
521.85
-8.70
KBW Bank
Value Line
-2.28
7588.32
7131.12
-1.81
-1.84
-3.18
-1.64
-2.70
589.69
503.24
5.3
-3.6
4939.86
3452.82
22.4
0.8
2.7
593.12
498.46
2.9
-4.2
-2.9
116.52
88.02
15.6
-1.5
13.3
93.26
76.42
-5.3
-4.4
5.0
107.30
104.03
105.08
-2.91
PHLX§ Gold/Silver
82.11
81.33
0.07
PHLX§ Oil Service
81.54
139.50
134.54
136.43
-2.99
-2.14
171.55
117.79
-19.1
1301.68
23.12
1260.47
18.60
1265.25 -39.99
2.55
21.49
-3.06
1445.90
37.32
13.46
960.01
9.14
26.6
67.0
PHLX§ Semiconductor
Cboe Volatility
0.09
Nasdaq PHLX
Close
Net chg
Americas
Brazil
Canada
Mexico
Chile
DJ Americas
625.92
Sao Paulo Bovespa 84820.42
S&P/TSX Comp
15207.41
S&P/BMV IPC
47926.11
Santiago IPSA
4204.04
EMEA
Eurozone
Belgium
Denmark
France
Germany
Israel
Italy
Netherlands
Russia
South Africa
Spain
Sweden
Switzerland
Turkey
U.K.
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
OMX Copenhagen
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
FTSE/JSE All-Share
IBEX 35
SX All Share
Swiss Market
BIST 100
FTSE 100
FTSE 250
374.82
378.24
3870.07
885.13
5258.24
12241.27
1391.67
22929.87
539.29
1236.48
55878.81
9682.80
553.70
8671.04
114737.54
7183.64
19530.17
YTD
% chg
–1.11
–1.15
–0.14
–2.7
–1.9
–1.4
–13.17 –2.06
–0.46
–389.24
–148.64 –0.97
–0.05
–25.64
–0.43
–17.98
–2.5
11.0
–6.2
–2.9
–0.2
–0.35
–1.31
–0.50
–1.89
–0.49
–18.95
–1.26 –0.140
–0.35
–18.43
–0.52
–63.92
Closed
…
–0.17
–39.63
–0.22
–1.20
–16.99 –1.36
0.21
117.66
–0.60
–58.10
–3.84 –0.690
–71.56 –0.82
–0.18
–210.04
–0.22
–15.86
–0.23
–46.00
–3.7
–1.4
–2.7
–4.4
–1.0
–5.2
–7.8
4.9
–1.0
7.1
–6.1
–3.6
–2.0
–7.6
–0.5
–6.6
–5.8
3002.47
389.52
262.92
The Global Dow
DJ Global Index
DJ Global ex U.S.
–33.84
–4.52
–0.38
S&P/ASX 200
5788.70
Shanghai Composite 3131.11
Hang Seng
29844.94
S&P BSE Sensex
33626.97
Nikkei Stock Avg
21567.52
Straits Times
3442.50
Kospi
2429.58
Weighted
10821.53
SET
1739.92
–0.002
Closed
1.11
0.09
–0.10
…
326.25
30.17
–77.90
36.85
–7.94
…
…
–0.36
1.08
–0.33
Closed
Closed
–4.6
–5.3
–0.2
–1.3
–5.3
1.2
–1.5
1.7
–0.8
Sources: SIX Financial Information; WSJ Market Data Group
WSJ
.COM
22.2
13.4
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
Consumer Rates and Returns to Investor
Selected rates
A consumer rate against its
benchmark over the past year
5-year CDs
2.00%
1.50
1.00
t
Federal-funds
target rate
0.50
0.00
M J J A S O N D J FMA
2017
2018
* 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.
Symbol
LongFin Cl A
Genprex
Broadwind Energy
Marrone Bio Innovations
NuCana ADR
LFIN
CASI Pharmaceuticals
FTD Cos. Inc.
GOL Linhas Aereas ADR
Pacira Pharmaceuticals
VS 2x VIX Short Term
CASI
NextDecade
Donegal Group Cl B
BIO-key International
Radiant Logistics
Freshpet
NEXT
GNPX
BWEN
MBII
NCNA
FTD
GOL
PCRX
TVIX
DGICB
BKYI
RLGT
FRPT
28.19
5.45
3.03
3.25
26.23
9.05
1.31
0.68
0.58
3.80
47.28
31.74
28.94
21.72
16.94
7.01
5.10
14.11
33.30
10.34
0.86
0.60
1.62
3.80
1.04
5.79
15.55
2.40
4.04
18.05
0.57
1.50
0.22
0.37
1.65
Company
Symbol
NewLink Genetics
MannKind
Incyte
Allena Pharmaceuticals
Innovate Biopharm
NLNK
Syndax Pharmaceuticals
Boston Omaha
Net Element
Luna Innovations
Finjan Holdings
SNDX
Check-Cap
SunRun
Nemaura Medical
InfoSonics
Akcea Therapeutics
CHEK
13.98
13.33
12.97
12.88
11.18
7.59 0.91
20.73 3.46
14.44 4.13
52.48 26.95
47.19 4.66
525.9
-73.2
140.3
-27.8
-72.7
10.92
10.68
10.09
10.08
10.06
10.99 3.95
16.25 13.35
3.67 1.20
6.65 3.51
20.85 10.55
-43.3
-0.9
...
-28.4
63.3
INCY
ALNA
INNT
BOMN
NETE
LUNA
FNJN
RUN
NMRD
IFON
AKCA
52-Week
Low
% chg
High
4.20 -3.12 -42.62
1.79 -0.59 -24.79
64.02 -19.05 -22.93
12.67 -3.07 -19.50
27.68 -6.58 -19.21
20.47 3.95
6.96 0.67
142.45 63.43
17.56 6.13
50.50 3.43
-74.1
34.6
-54.3
...
140.7
10.84
22.40
7.33
3.17
2.85
-2.50
-4.87
-1.54
-0.60
-0.53
-18.74
-17.86
-17.36
-15.92
-15.68
15.43 7.41
35.49 12.15
33.51 2.56
4.00 1.16
4.06 1.66
-13.8
16.4
-13.8
82.2
57.5
3.59
8.52
3.44
4.62
21.62
-0.61
-1.42
-0.56
-0.74
-3.11
-14.52
-14.29
-13.88
-13.81
-12.58
27.60
10.16
9.60
26.00
33.99
-86.2
59.6
37.8
-63.4
...
3.58
4.21
2.00
4.49
8.10
Most Active Stocks
Company
Symbol
Neovasc
SPDR S&P 500
Finl Select Sector SPDR
VS 2x VIX Short Term
Bank of America
NVCN
SPY
XLF
TVIX
BAC
Volume % chg from Latest Session
(000) 65-day avg Close % chg
357,736
151,334
85,756
82,912
78,127
1034.0
0.06 48.66
28.1 259.72 -2.23
35.0 27.17 -2.41
98.1 10.34 11.18
5.1 29.63 -2.28
1.89
286.63
30.33
47.19
33.05
0.03
232.51
22.89
4.66
22.07
Forex Race
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.75%
10
2.25
5
1.50
0
0.75
–5
Friday
t
One year ago
0.00
1
3 6
month(s)
1 2 3 5 710
years
maturity
15%
3.00
Euro
Yen
s
2017
2018
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Interest rate
Yield/Rate (%)
Last (l)Week ago
Federal-funds rate target
1.50-1.75 1.50-1.75
Prime rate*
4.75
4.75
Libor, 3-month
2.31
2.34
Money market, annual yield
0.35
0.35
Five-year CD, annual yield
1.66
1.67
30-year mortgage, fixed†
4.40
4.43
15-year mortgage, fixed†
3.85
3.87
Jumbo mortgages, $424,100-plus† 4.70
4.66
Five-year adj mortgage (ARM)† 4.31
4.13
New-car loan, 48-month
3.67
3.73
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
l
0.75
l
4.00
l
1.15
0.25 l
l
1.29
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
1.50
4.75
2.34
0.36
1.67
4.49
3.95
4.96
4.50
3.73
1.50
1.50
2.06
-0.07
0.18
0.65
0.82
0.65
1.05
0.78
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
Corporate Borrowing Rates and Yields
Yield (%)
Last Week ago
52-Week
High
Low
1437.774
2.631
2.604
2.736
1.818
10-yr Treasury, Ryan ALM 1684.871
DJ Corporate
373.342
Aggregate, Barclays Capital 1915.230
High Yield 100, Merrill Lynch
n.a.
Fixed-Rate MBS, Barclays 1964.720
Muni Master, Merrill
n.a.
2.779
3.681
3.140
n.a.
3.340
n.a.
2.741
3.703
3.120
6.265
3.300
2.491
2.943
3.814
3.230
n.a.
3.410
n.a.
2.058 –1.315 –0.672
2.879 2.245 2.074
2.380 0.819 1.116
n.a.
n.a.
n.a.
2.660 0.444 1.075
n.a.
n.a.
n.a.
796.328
5.972
6.006
6.104
5.279
Bond total return index
Treasury, Ryan ALM
EMBI Global, J.P. Morgan
Close
THE WALL STREET JOURNAL
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and commodities at WSJ.com/TrackTheMarkets
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Currencies
U.S.-dollar foreign-exchange rates in late New York trading
Country/currency
in US$
US$vs,
YTDchg
Fri
per US$ (%)
Total Return (%)
52-wk
3-yr
0.056 0.145
3.199 5.219
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Country/currency
in US$
Americas
Europe
Argentina peso
.0496 20.1758 8.5
Brazil real
.2967 3.3703 1.8
Canada dollar
.7823 1.2783 1.7
Chile peso
.001653 604.80 –1.7
Ecuador US dollar
1
1 unch
Mexico peso
.0547 18.2939 –7.0
Uruguay peso
.03531 28.3200 –1.7
Venezuela b. fuerte .00002049600.0001 479504.7
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
Asia-Pacific
WSJ Dollar index
–10
30
*Continuous front-month contracts
Sources: SIX Financial Information (stock indexes), Tullett Prebon (currencies), WSJ Market
Data Group (bond ETFs, commodities).
52-Week
High
Low
* Common stocks priced at $2 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
2.75%
888-720-8756
First Internet Bank of Indiana
2.78%
Indianapolis, IN
888-873-3424
...
...
-63.2
85.7
...
Latest Session
Close Net chg % chg
MNKD
1.67%
Third Federal Savings and Loan
2.75%
Cleveland, OH
888-274-7952
4.69
3.84
2.10
0.85
9.32
142.82
5.89
9.80
3.39
29.75
-8.95
Benchmark
Yields
Treasury
yield
curve
and
Yield toRates
maturity of current bills,
2.75%
800-274-5696
52-Week
Low
% chg
High
Percentage Losers
Goldman Sachs Bank USA
2.75%
New York, NY
855-730-7283
Popular Direct
New York, NY
Latest Session
Close Net chg % chg
notes and bonds
Bankrate.com avg†:
Barclays
Wilmington, DE
Company
s
t
NYSE Arca
Total volume*2,326,712,623 337,552,517
Adv. volume* 695,030,361 74,051,187
Decl. volume*1,611,295,227 262,182,305
Issues traded
3,030
1,356
Advances
639
323
Declines
2,290
1,019
Unchanged
101
14
New highs
40
0
New lows
56
11
Closing tick
323
89
Closing Arms†
0.65
1.06
Block trades*
14,090
1,374
s
U.S. consumer rates
Five-year CD yields
NYSE NYSE Amer.
Total volume* 877,578,802 9,720,322
Adv. volume* 71,033,588 1,931,741
Decl. volume* 799,100,349 7,277,374
Issues traded
3,059
326
Advances
627
126
Declines
2,315
183
Unchanged
117
17
New highs
31
4
New lows
55
6
Closing tick
201
14
Closing Arms†
2.58
2.25
Block trades*
6,240
104
Percentage Gainers...
Latest
% chg
t
Region/Country Index
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
Thailand
1.0
94.7
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
World
-8.8 -12.2
Volume, Advancers, Decliners
Nasdaq
ETF
4.71%
Wheat
3.96
IPC All-Share
2.31
FTSE MIB
2.00
S&P BSE Sensex
1.80
FTSE 100
1.76
CAC-40
1.64
Euro Stoxx
1.19
DAX
1.16
Comex Copper
1.07
Stoxx Europe 600
0.95
Canada dollar
0.86
IBEX 35
0.69
Comex Gold
0.67
Comex Silver
Nikkei 225 0.53
UK pound 0.51
S&P/ASX 200 0.51
WSJ Dollar Index 0.29
Indian Rupee 0.25
Corn 0.19
Norwegian Krone 0.17
-0.07 S&P/TSX Comp
-0.08 iSh 1-3 Treasury
-0.09 VangdTotIntlBd
-0.10 S&P 500 Energy
-0.12 S&P 500 Utilities
-0.16 iSh TIPS Bond
-0.18 S&P 500 Telecom Svcs
-0.18 Sao Paulo Bovespa
-0.21 Chinese Yuan
-0.22 iShJPMUSEmgBd
-0.26 iSh 7-10 Treasury
-0.26 VangdTotalBd
-0.27 Indonesian Rupiah
-0.27 iShiBoxx$InvGrdCp
-0.28 S&P 500 Consumer Staples
-0.33 Euro area euro
-0.35 Australian dollar
-0.36 iShNatlMuniBd
-0.43 iShiBoxx$HYCp
-0.44 S&P SmallCap 600
-0.51
Swiss Franc
-0.63
Japan yen
-0.64
S&P 500 Real Estate
-0.66
iSh 20+ Treasury
-0.66
S&P 500 Consumer Discr
-0.67
Kospi Composite
-0.71
Dow Jones Industrial Average
-0.72
S&P 500 Materials
-0.72
Mexico peso
-0.83
Hang Seng
-0.88
South Korean Won
-1.05
Soybeans
-1.05
Russell 2000
-1.17
Nymex Natural Gas
-1.18
South African Rand
-1.19
Shanghai Composite
-1.31
S&P MidCap 400
-1.38
S&P 500
-1.45
S&P 500 Financials Sector
-1.57
Russian Ruble
-1.68
S&P 500 Health Care
-2.04
S&P 500 Industrials
-2.09
S&P GSCI GFI
-2.10
Nasdaq Composite
-2.25
Nasdaq 100
-2.29
S&P 500 Information Tech
-2.41
Dow Jones Transportation Average
-3.13
Nymex ULSD
-3.26
Nymex Rbob Gasoline
-4.43
Nymex Crude
Lean Hogs
Bars measure the point change from session's open
Feb.
Commodity,
traded in U.S*
Australian dollar
.7655 1.3063
China yuan
.1586 6.3044
Hong Kong dollar
.1274 7.8486
India rupee
.01540 64.920
Indonesia rupiah .0000725 13785
Japan yen
.009353 106.92
Kazakhstan tenge .003127 319.76
Macau pataca
.1234 8.1044
Malaysia ringgit
.2584 3.8700
New Zealand dollar
.7270 1.3755
Pakistan rupee
.00866 115.500
Philippines peso
.0192 52.044
Singapore dollar
.7601 1.3156
South Korea won .0009339 1070.73
Sri Lanka rupee
.0064329 155.45
Taiwan dollar
.03410 29.324
Thailand baht
.03198 31.270
Vietnam dong
.00004385 22803
Commodities
2.0
–3.1
0.5
1.6
2.2
–5.1
–3.9
0.7
–4.7
–2.4
4.4
4.2
–1.6
0.3
1.3
–1.2
–4.1
0.4
.04841 20.656
.1649 6.0632
1.2283 .8142
.003930 254.45
.010126 98.76
.1277 7.8287
.2925 3.4192
.01721 58.094
.1192 8.3908
1.0429 .9589
.2472 4.0453
.0381 26.2729
1.4089 .7098
DJ Commodity
–2.9
–2.3
–2.3
–1.8
–4.6
–4.6
–1.7
0.7
2.5
–1.6
6.6
–6.6
–4.1
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6522 .3770 –0.02
.0566 17.6825 –0.5
.2832 3.5316 1.5
3.3322 .3001 –0.4
2.5974 .3850 0.01
.2751 3.635 –0.4
.2666 3.7503
...
.0831 12.0325 –2.7
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 83.99 –0.18–0.21 –2.31
Sources: Tullett Prebon, WSJ Market Data Group
Friday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
US$vs,
YTDchg
Fri
per US$ (%)
% Chg
YTD
% chg
626.43
-1.63
-0.26
645.87
532.01
9.86
0.17
192.25
62.06
2.701
1331.90
-1.56
-1.48
0.026
7.60
-0.80 200.52
66.14
-2.33
3.63
0.97
0.57 1362.40
166.50
42.53
2.55
1208.60
2.75
18.80
-17.17
6.19
-0.83
2.71
-8.53
1.96
.
B8 | Saturday/Sunday, April 7 - 8, 2018
THE WALL STREET JOURNAL.
* ***
MARKET DATA
Futures Contracts
Contract
High hi lo
Low
Settle
3.0510
3.0685
3.0545
3.0685
3.0350
3.0245
390.00
398.50
231.00
240.25
234.50
241.75
1003.00
1022.00
1037.25
1048.00
230.25
237.75
233.25
241.00
1003.00
1014.00
Soybean Meal (CBT)-100 tons; $ per ton.
379.00
382.50
May
July
387.30
391.00
31.63
31.90
31.77
32.04
1236.00
1255.50
1250.50
1255.50
1233.00
1255.50
137.150
137.750
114.000
104.150
April
June
134.550
134.975
114.150
104.375
111.950
102.050
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
52.650
73.300
April
June
8.25
9.00
99,703
96,196
607.25
617.00
17.50
15.75
29,532
16,771
April
June
135.325 –2.150
135.625 –2.425
7,091
20,911
April
June
112.225 –2.075 28,387
102.325 –2.725 159,510
April
June
52.700
73.750
52.050
72.350
538.50
525.00
May
July
540.40 s
527.70 s
530.00
517.30
14.49
14.76 s
14.35
14.55
2,516
2,551
2,440
2,494
Milk (CME)-200,000 lbs., cents per lb.
14.35
14.57
April
May
Cocoa (ICE-US)-10 metric tons; $ per ton.
2,508
2,542
May
July
Coffee (ICE-US)-37,500 lbs.; cents per lb.
117.60
119.55
May
July
118.05
119.95
116.80
118.80
12.36
12.48
May
July
12.42
12.49
12.28
12.35
24.81
24.93
May
July
24.85
24.93
24.62
24.92
–.20
–1.60
5,178
1,241
14.41
14.70
.03
.12
3,551
3,567
2,453
2,498
–55
–41
79,333
88,280
June
Sept
Cotton (ICE-US)-50,000 lbs.; cents per lb.
393,203
119,711
172,603
114,772
129,246
74,471
82.00
81.89
May
July
83.46
83.04
81.80
81.44
24.62
25.08
.12
.15
772
2,763
82.54
82.18
–.03
.03
92,038
83,438
137.25
138.70
138.50
139.25
136.15
137.40
137.45
138.45
–.30
–.30
8,785
3,171
.50
.50
–.25 197,450
–.24 154,239
1249.50
1259.50
10.50
9.50
144-260
144-070
120-180 121-020
120-150 120-245
June
Sept
120-175
120-145
1-04.0 767,085
1-04.0
93
121-005
120-240
14.5 3,443,868
15.0
1,607
114-047 114-140
114-042
114-125
8.0 3,410,704
106-080 106-110
106-077
106-105
2.5 1,936,917
98.315
97.845
98.318
97.895
98.318
97.885
… 353,949
.040 315,078
98.315
97.845
94.125
94.734
94.125
94.703
.500
...
April
...
...
Eurodollar (CME)-$1,000,000; pts of 100%
97.6875
April
97.6875
t 97.6625
98.1025
Largest 100 exchange-traded funds, latest session
ETF
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
AMLP
XLY
XLP
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
9.35
ETF
iShEdgeMSCIMinUSA
iShEdgeMSCIUSAMom
iShFloatingRateBd
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCI ACWI
iShMSCIBrazil
iShMSCI EAFE
iShMSCI EAFE SC
iShMSCIEmgMarkets
iShMSCIEurozone
iShMSCIJapan
iShNasdaqBiotech
iShNatlMuniBd
iShRussell1000Gwth
iShRussell1000
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000
iShRussell2000Val
–1.48 –13.3
100.68
–2.13
2.0
52.42
–1.02
–7.9
67.35
–1.81
–6.8
27.17
–2.41
–2.7
98.14
–2.11
–2.9
79.88
–2.41
–3.4
72.77
–2.77
–3.8
106.99
0.20
–2.0
103.83
0.07
–0.7
120.43
0.26
–1.4
65.44
–0.77
–1.0
57.02
–1.83
0.2
62.46
–1.03
–1.0
261.57
–2.21
–2.7
185.01
–1.99
–2.5
76.76
–1.80
–0.1
59.62
–2.12
–2.5
106.91
0.22
–2.2
94.70
–1.60
–3.9
73.47
–0.47
0.7
USMV
MTUM
FLOT
IAU
LQD
HYG
EMB
MBB
ACWI
EWZ
EFA
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
51.49
–1.72
–2.4
103.12
–2.62
–0.0
50.89
...
0.1
12.81
0.55
2.4
117.07
0.30
–3.7
85.27
–0.22
–2.3
112.57
0.15
–3.0
104.39
0.10
–2.1
70.82
–1.67
–1.8
43.42
–1.50
7.3
69.40
–0.66
–1.3
64.72
–0.52
0.3
47.08
–1.96
–0.1
43.50
–0.32
0.3
59.62
–1.57
–0.5
101.03
–3.01
–5.4
108.54
0.20
–2.0
133.94
–2.29
–0.5
144.79
–2.13
–2.6
118.50
–2.04
–4.7
187.98
–1.97
0.7
150.36
–1.99
–1.4
121.41
–1.77
–3.5
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
April 6, 2018
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
Feb. index
level
Chg From (%)
Jan. '18 Feb. '17
U.S. consumer price index
0.45
0.45
248.991
255.783
All items
Core
0.00
0.50
0.00
0.50
4.039 4.012 4.109 3.253
4.066 4.041 4.139 3.281
30 days
60 days
52-Week
High
Low
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 March 22, 2018.
Other prime rates aren’t directly comparable;
lending practices vary widely by location.
Complete Money Rates table appears Monday
through Friday.
Sources: Bureau of Labor Statistics; SIX Financial
Information
Policy Rates
0.00
0.50
0.25
1.50
30-year mortgage yields
4.75 4.75 4.75 4.00
3.45 3.45 3.45 2.70
1.475 1.475 1.475 1.475
Euro zone
Switzerland
0.50
1.50
Fannie Mae
Prime rates
U.S.
Canada
Japan
0.50
1.50
Secondary market
2.2
1.8
International rates
Week
Latest ago
0.50
1.50
Britain
Australia
—52-WEEK—
High Low
0.00
0.50
Mutual Funds
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. rRedemption charge may apply. s-Stock split or dividend. t-Footnotes p and r apply. v-Footnotes
x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to incomplete
price, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund not
tracked. NS-Fund didn’t exist at start of period.
Fund
Friday, April 6, 2018
Net YTD
Net YTD
NAV Chg % Ret Fund
NAV Chg % Ret Fund
A
American Century Inv
44.06
Ultra
American Funds Cl A
31.92
AmcpA p
AMutlA p
39.27
BalA p
26.60
12.64
BondA p
60.38
CapIBA p
50.64
CapWGrA
56.32
EupacA p
61.01
FdInvA p
GwthA p
50.16
HI TrA p
10.20
39.22
ICAA p
22.67
IncoA p
43.53
N PerA p
46.11
NEcoA p
67.12
NwWrldA
SmCpA p
56.13
TxExA p
12.80
44.39
WshA p
-1.07
1.5
-0.68
-0.71
-0.27
+0.04
-0.44
-0.67
-0.52
-1.20
-1.06
-0.01
-0.73
-0.22
-0.77
-0.91
-0.80
-0.66
+0.01
-0.90
1.4
-3.3
-1.7
-1.4
-3.1
-0.5
0.2
-1.7
1.3
-0.2
-2.5
-2.3
0.9
3.3
0.3
0.6
-1.1
-2.3
B
Baird Funds
AggBdInst
CorBdInst
10.64
10.98
BlackRock Funds A
GlblAlloc p
19.47
BlackRock Funds Inst
22.49
EqtyDivd
19.59
GlblAlloc
7.65
HiYldBd
StratIncOpptyIns 9.91
Bridge Builder Trust
CoreBond
NA
ExtMktIdxPrem r 61.37
D
IntlIdxPrem r 42.64
SAIUSLgCpIndxFd 13.98
Dimensional Fds
74.90
10.83 +0.01 -0.4 TMktIdxF r
5GlbFxdInc
31.61 -0.37 1.2 TMktIdxPrem 74.89
EmgMktVa
EmMktCorEq 23.34 -0.31 0.5 USBdIdxInstPrem 11.34
14.33 -0.09 -1.4 Fidelity Advisor I
IntlCoreEq
31.64
20.13 -0.16 -1.6 NwInsghtI
IntlVal
IntSmCo
IntSmVa
US CoreEq1
US CoreEq2
US Small
US SmCpVal
US TgdVal
USLgVa
21.10
22.38
22.32
21.04
35.14
36.87
24.14
37.57
-0.09
-0.10
-0.50
-0.46
-0.67
-0.74
-0.53
-0.84
-0.8
-2.6
-1.8
-2.3
-2.1
-2.8
-2.9
-3.5
102.86
13.39
13.52
45.06
194.49
DoubleLine Funds
NA
TotRetBdI
-1.19
-0.18
+0.03
-0.41
-3.93
-2.3
-3.4
-0.8
-2.7
-3.1
Dodge & Cox
Balanced
GblStock
Income
Intl Stk
Stock
...
NA
E
+0.04 -1.5
+0.03 -1.5 Edgewood Growth Instituti
EdgewoodGrInst 30.74 -0.77
-0.15 -1.2
Net YTD
NAV Chg % Ret
4.0
F
... -1.2 Federated Instl
5.75
-0.15 -1.1 StraValDivIS
-0.01 -0.5 Fidelity
90.99
-0.01 0.4 500IdxInst
500IdxInstPrem 90.99
... NA 500IdxPrem 90.99
-0.04 -5.7
-2.54 -2.1
-2.54 -2.1
-2.54 -2.1
Fidelity Freedom
16.41
14.25
17.86
16.39
14.23
17.84
15.04
10.56
Fidelity Invest
23.51
Balanc
BluCh
88.96
122.40
Contra
122.36
ContraK
CpInc r
10.10
39.08
DivIntl
182.88
GroCo
GrowCoK
182.89
7.76
InvGB
11.02
InvGrBd
53.72
LowP r
104.49
MagIn
111.17
OTC
23.11
Puritn
SrsEmrgMkt 21.53
SrsGroCoRetail 17.08
15.94
SrsIntlGrw
10.50
SrsIntlVal
TotalBond
10.45
FF2020
FF2025
FF2030
Freedom2020 K
Freedom2025 K
Freedom2030 K
Freedom2035 K
Freedom2040 K
-1.17
-0.30
-0.32
-1.64
-1.64
+0.04
-1.1
-1.3
-2.1
-1.9
-1.9
-1.5
-0.38
-2.07
-2.84
-2.83
-0.05
-0.34
-4.37
-4.38
+0.02
+0.04
-0.71
-2.38
-2.67
-0.42
-0.36
-0.41
-0.20
-0.08
+0.03
-0.6
1.4
1.5
1.5
-1.0
-2.3
2.4
2.4
-1.4
-1.3
-1.5
-0.1
1.2
-1.0
0.6
2.7
-1.3
-1.8
-1.1
Australia 2
10
.7827 –.0014
234
.7836 –.0015 120,083
June
.0083
858
.0082 167,997
1.0491
.0050
.05392
.05322
24483
24390
24506
24522
23700
23730
23926
23955
–542
–541
97,088
2,227
2605.70 –56.10
62,483
S&P 500 Index (CME)-$250 x index
2657.60
2657.60
2584.50
Mini S&P 500 (CME)-$50 x index
2663.00
2666.25
June
Sept
2664.00
2667.50
2584.50
2588.25
2605.75 –56.00 2,914,793
2610.00 –56.00 81,064
Mini S&P Midcap 400 (CME)-$100 x index
1892.60
June
.7669
.7670
.7670
.7672
.7674
.7681
1893.30
1839.50
1854.10 –38.60
Mini Nasdaq 100 (CME)-$20 x index
49,856
6608.0
6633.8
June
Sept
–.0013
1,021
–.0013
327
–.0013 106,480
–.0013
255
–.0013
736
–.0013
386
6611.3
6639.0
6408.5
6437.0
Mini Russell 2000 (ICE-US)-$100 x index
1533.50
June
1545.70
1502.50
Mini Russell 1000 (ICE-US)-$100 x index
1449.10
June
1449.10
1436.40
U.S. Dollar Index (ICE-US)-$1,000 x index
90.07
89.66
June
Sept
.05398 –.00045 216,129
.05323 –.00045
544
Latest(l)-2 -1
0
1
l
2.039 t
2.668 t
l
l
l
Germany 2 -0.590 t
10 0.500 t
l
0.100
1.400
1.400
l
l
Italy 2 -0.319 t
10 1.784 s
l
Japan 2 -0.145 t
10 0.041 t
l
Spain 2 -0.339 t
10 1.220 s
l
2.000
U.K. 2
4.250
10
Yield (%)
3 4 Previous
2
l
France 2 -0.506 t
10 0.732 t
0.100
4,094
IWV
IWR
IWS
IJK
IVW
IVE
PFF
SHV
TIP
SHY
IEF
IWP
MINT
QQQ
BKLN
JNK
GLD
SCHF
SCHB
SCHD
SCHX
DIA
MDY
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VBK
VIG
VEA
VWO
VGK
VFH
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
154.19
–2.13
–2.5
203.16
–2.10
–2.4
85.45
–1.97
–4.2
215.11
–1.92
–0.3
152.38
–2.37
–0.3
108.22
–2.00
–5.3
37.20
–0.11
–2.3
110.27
...
0.0
112.87
0.40
–1.1
83.49
0.08
–0.4
102.92
0.44
–2.5
120.27
–2.34
–0.3
101.47
0.03
–0.1
156.63
–2.50
0.6
23.10
–0.04
0.3
35.74
–0.17
–2.7
126.39
0.47
2.2
33.49
–0.86
–1.7
62.96
–2.11
–2.4
48.36
–2.01
–5.5
62.20
–2.17
–2.5
239.13
–2.36
–3.3
337.03
–1.95
–2.4
259.72
–2.23
–2.7
90.58
–1.68
–4.1
64.05
–2.45
0.2
50.42
–0.79
–4.3
22.07
0.46
–5.0
167.20
–2.42
1.5
128.24
–1.84
–3.4
160.96
–2.04
0.1
99.60
–2.19
–2.4
44.00
–0.81
–1.9
46.16
–1.77
0.5
58.25
–0.33
–1.5
68.45
–2.31
–2.3
53.88
–1.01
–1.5
139.41
–2.30
–0.9
150.21
–2.44
–2.5
81.58
–2.01
–4.7
81.58
0.27
–2.7
84.57
0.24
–3.2
119.50
–2.17
–2.5
151.76
–2.15
–2.0
108.37
–1.96
–2.9
75.27
–0.75
–9.3
238.62
–2.20
–2.7
78.36
0.17
–0.9
78.36
0.09
–1.2
144.99
–1.93
–1.9
79.72
0.25
–2.3
54.68
0.22
0.6
56.06
–1.04
–1.3
133.87
–2.10
–2.5
72.71
–1.61
–2.1
102.05
–2.07
–4.0
Net YTD
NAV Chg % Ret Fund
First Eagle Funds
57.96
GlbA
FPA Funds
FPACres
34.11
FrankTemp/Frank Adv
IncomeAdv
2.25
FrankTemp/Franklin A
7.28
CA TF A p
2.27
IncomeA p
58.49
RisDv A p
FrankTemp/Franklin C
2.30
Income C t
FrankTemp/Temp A
12.00
GlBond A p
26.45
Growth A p
FrankTemp/Temp Adv
GlBondAdv p 11.95
H
90.30
89.78
76,846
6454.8 –145.5 238,723
6481.5 –146.0 10,360
1515.70 –28.30
8,257
1446.10 –30.60
57
89.75
89.33
89.78
89.36
–.37
–.36
29,790
967
Source: SIX Financial Information
l
l
l
0.862 t
1.396 t
l
l
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
Month ago
Year ago
2.307
2.831
2.258
2.890
1.242
2.341
2.053
2.020
1.689
-22.3
-25.4
2.676
2.803
2.587
-11.0
-15.6
24.6
-0.483
-0.469
-0.487 -276.8
0.902
-204.6
-279.0
-172.9
-207.6
-143.9
0.755
0.928
-0.583
-0.612
0.526
44.7
-289.0
-202.8
0.677
-0.786 -285.2
0.265
-227.8
-230.5
-207.7
-0.317
-0.193
-0.075
-258.1
-262.4
-131.7
1.778
2.000
2.098
-99.5
-105.4
-24.4
-0.132
-0.169
-0.203
-240.7
-243.8
-144.5
-278.9
-228.0
-264.2
-144.9
0.042
0.057
-0.335
-0.359
-0.207
0.061 -273.7
1.217
1.405
1.623
-155.8
-161.5
-71.8
0.878
0.701
0.143
-140.0
-142.8
-110.0
1.419
1.522
1.105
-138.3
-141.2
-123.7
-260.1
Source: Tullett Prebon
Investment-grade spreads that tightened the most…
Issuer
Symbol Coupon (%)
Citigroup
Barclays
Sherwin–Williams
Assurant
C
Dow Chemical
Intesa Sanpaolo Spa
Biogen
Suncor Energy
DWDP
-0.09
1.6
J
L
M
ISPIM
BIIB
SUCN
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
203
–19
154
–16
73
–16
170 –13
n.a.
n.a.
86
n.a.
68.60
...
385.71
89.54
–2.31
...
–2.80
–2.46
7.375
Nov. 1, ’29
3.125 July 14, ’22
5.200 Sept. 15, ’45
6.800 May 15, ’38
126 –13
120 –13
147 –12
133 –11
133
n.a.
n.a.
n.a.
63.71
...
257.65
...
–2.64
...
–2.77
...
4.150 March 15, ’28
5.950 Jan. 30, ’49
5.750 Aug. 15, ’53
3.950 April 21, ’25
CPB
C
ALL
BAC
Aug. 1, ’21
June 24, ’24
Oct. 1, ’49
141
219
180
129
24
23
14
12
149
n.a.
n.a.
138
43.73
68.60
95.90
29.63
0.57
–2.31
–1.27
–2.28
225
190
179
12
12
10
n.a.
n.a.
n.a.
...
24.38
101.17
...
–1.69
–3.15
Bond Price as % of face value
Current
One-day change
Last week
High-yield issues with the biggest price increases…
Issuer
Symbol
Albertsons
Westpac Banking
Talen Energy Supply
CBL & Associates
ALBLLC
Weatherford International
CHS/Community Health Systems
New Albertsons
Monitronics International
WFT
Coupon (%)
WSTP
TLN
CBL
CYH
NEWALB
MONINT
Maturity
6.625 June 15, ’24
5.000 Sept. 21, ’49
6.500
June 1, ’25
5.950 Dec. 15, ’26
92.875
95.115
69.750
85.650
5.950
7.125
7.750
9.125
69.500
83.250
87.250
76.750
April 15, ’42
July 15, ’20
June 15, ’26
April 1, ’20
2.60
2.42
1.75
1.53
1.38
1.25
1.25
1.13
Stock Performance
Close ($)
% chg
90.125
92.375
70.500
n.a.
...
...
...
4.40
...
...
...
–0.90
68.000
81.750
n.a.
77.000
2.35
…
...
...
–2.89
…
...
...
82.000
n.a.
n.a.
71.375
3.48
2.75
...
...
–7.45
–1.08
...
...
n.a.
n.a.
87.500
81.000
3.35
...
299.30
...
...
...
–2.10
...
…And with the biggest price decreases
Ultra Resources
Genworth Financial
Freedom Mortgage
EP Energy
UPL
Salem Media
IHO Verwaltungs Gmbh
Tesla
Intelsat Jackson Holdings
SALM
GNW
FREMOR
EPENEG
SHAEFF
TSLA
INTEL
7.125
7.700
8.250
9.375
April 15, ’25
June 15, ’20
April 15, ’25
May 1, ’24
76.000
98.500
100.280
69.250
6.750
June 1, ’24
4.500 Sept. 15, ’23
5.300 Aug. 15, ’25
5.500
Aug. 1, ’23
95.500
96.875
89.000
82.000
–2.00
–1.35
–1.35
–1.13
–1.00
–1.00
–1.00
–0.81
*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
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
33.20 -0.43
15.69
... 0.2 LifeGro
NA
... NA MuShtAdml
26.82 -0.24
NA
... NA PrmcpAdml r 132.62 -3.06 -0.7 LifeMod
26.30 -0.60
NA
... NA RealEstatAdml 106.63 -0.80 -8.4 PrmcpCor
R2035
29.53 -0.56
NA
... NA SmCapAdml 69.49 -1.37 -1.5 SelValu r
R2040
26.53 -0.26
36.06 -0.75 -3.4 STBondAdml 10.28 +0.01 -0.5 STAR
Value
10.51 +0.01
STIGrade
STIGradeAdml 10.51 +0.01 -0.5
PRIMECAP Odyssey Fds
15.18 -0.09
TgtRe2015
10.51 +0.03 -1.5
AggGrowth r 47.30 -1.34 6.7 TotBdAdml
31.03 -0.25
TgtRe2020
38.69 -1.01 3.9 TotIntBdIdxAdm 21.83 +0.02 0.9
Growth r
18.27 -0.17
TotIntlAdmIdx r 30.11 -0.27 -1.1 TgtRe2025
Principal Investors
33.19 -0.37
65.16 -1.43 -1.9 TgtRe2030
DivIntlInst
13.69 -0.13 -1.5 TotStAdml
20.40 -0.26
TgtRe2035
14.14 -0.10 -1.5
TxMIn r
Prudential Cl Z & I
35.26 -0.49
TgtRe2040
39.81 -0.84 -3.3
NA
... NA ValAdml
TRBdZ
22.16 -0.33
TgtRe2045
WdsrllAdml
64.73 -1.26 -3.6
35.66 -0.52
TgtRe2050
WellsIAdml
63.12 -0.27 -2.7
13.40 -0.05
TgtRetInc
70.32 -0.78 -2.5
WelltnAdml
Schwab Funds
TotIntBdIxInv 10.92 +0.01
77.51 -1.63 -1.9
40.32 -0.90 -2.1 WndsrAdml
S&P Sel
WellsI
26.06 -0.11
VANGUARD FDS
Welltn
40.72 -0.45
25.85 -0.51 -1.5 WndsrII
DivdGro
36.48 -0.70
HlthCare
r
195.80
-4.41
-2.3
TIAA/CREF Funds
VANGUARD INDEX FDS
22.28
-0.17
-1.1
INSTTRF2020
EqIdxInst
19.26 -0.42 -2.0
240.51 -5.39
500
IntlEqIdxInst 19.95 -0.13 -1.1 INSTTRF2025 22.58 -0.22 -1.2 ExtndIstPl
206.25 -3.95
INSTTRF2030 22.82 -0.25 -1.3 SmValAdml
Tweedy Browne Fds
55.10 -1.06
10.48 +0.03
28.08 -0.06 -1.4 INSTTRF2035 23.06 -0.28 -1.3 TotBd2
GblValue
INSTTRF2040 23.29 -0.32 -1.4 TotIntl
18.00 -0.16
INSTTRF2045 23.45 -0.34 -1.5 TotSt
65.14 -1.42
39.32 -0.35 -1.4 VANGUARD INSTL FDS
IntlVal
VANGUARD ADMIRAL
19.68 -0.10 -1.1 BalInst
33.97 -0.40
240.51 -5.39 -2.1 LifeCon
500Adml
+0.03 -1.4 R2025
+0.03 -1.3 R2030
-0.76 -4.0
-0.16 -1.4
-0.38 -2.7
Oakmark Funds Invest
NA
... NA
EqtyInc r
NA
... NA
Oakmark
OakmrkInt
NA
... NA
Old Westbury Fds
14.28 -0.22 -1.2
LrgCpStr
Oppenheimer Y
44.00 -0.69 2.5
DevMktY
43.33 -0.19 -0.7
IntGrowY
P
I
AIZ
Current
5.900 Feb. 15, ’49
6.625 Sept. 15, ’49
2.750
June 1, ’22
4.900 March 27, ’28
Drawbridge Special Opportunities Fund DRAWBR 5.000
WMB
Williams
4.550
NTRS
Northern Trust
4.600
O
-0.09 1.6
-0.22 -3.0
SHW
Campbell Soup
Citigroup
Allstate
Bank of America
10.45
TotRetBdI
-0.65 -1.9 TRBdPlan
9.84
MFS Funds Class I
-0.41 -1.7 ValueI
39.03
MFS Funds Instl
-0.02 -3.0 IntlEq
25.10
Mutual Series
... -1.7 GlbDiscA
30.94
-0.02 -3.0
-1.37 -4.1
-0.02 -3.1
BACR
Maturity
…And spreads that widened the most
70.93 -1.81 2.1
67.09 -0.44 -0.6
Harding Loevner
Parnassus Fds
NA
... NA ParnEqFd
IntlEq
41.98
PIMCO Fds Instl
NA
AllAsset
Invesco Funds A
TotRt
NA
10.63 -0.15 -2.7
EqIncA
PIMCO Funds A
NA
IncomeFd
John Hancock Class 1
PIMCO Funds Instl
15.01 -0.14 -0.9 IncomeFd
LSBalncd
NA
15.93 -0.20 -0.9 PIMCO Funds P
LSGwth
John Hancock Instl
NA
IncomeP
DispValMCI
22.82 -0.54 -2.1 Price Funds
JPMorgan Funds
BlChip
99.67
MdCpVal L
39.09 -0.80 -3.0 CapApp
28.20
JPMorgan R Class
32.19
EqInc
11.37 +0.03 -1.2
CoreBond
EqIndex
69.89
63.87
Growth
68.87
HelSci
Lazard Instl
38.05
20.09 -0.32 0.3 InstlCapG
EmgMktEq
18.55
IntlStk
Lord Abbett A
14.88
... IntlValEq
ShtDurIncmA p 4.21 +0.01
88.27
MCapGro
Lord Abbett F
29.94
4.20
... -0.2 MCapVal
ShtDurIncm
N Horiz
54.70
9.29
N Inc
Metropolitan West
11.23
OverS SF r
10.45 +0.03 -1.4 R2020
TotRetBd
NA
IntlInst r
-1.0
-1.0
-1.1
-1.0
-1.0
-1.1
-1.1
-1.2
June
Sept
97.6700 –.0125 291,489
iShRussell3000
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500Value
iShUSPfdStk
iShShortTreaBd
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS Div
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdSC Grwth
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFinls
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdRealEst
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
0.9 CapApInst
-0.13
-0.13
-0.20
-0.13
-0.13
-0.20
-0.21
-0.15
.05441
.05352
4.500
0.050
Closing Chg YTD
Symbol Price (%) (%)
Harbor Funds
-0.68
.0051
777
.0051 153,045
1.4090
1.4126
.7666
.7660
.7658
.7668
.7665
.7678
.0048
1,808
.0048 484,224
in that same company’s share price.
Fund
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least
$500 million each.
.7693
.7699
.7700
.7694
.7700
.7679
1.2292
1.2349
Corporate Debt
ETF
Closing Chg YTD
Symbol Price (%) (%)
1.0422
1.2227
1.2277
Index Futures
U.S. 2 2.262 t
10 2.778 t
2.000
29,365
…
1.3993
1.4024
1.0500
2.250
0.500
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Friday, April 6, 2018
Closing Chg YTD
Symbol Price (%) (%)
.05435
.05337
0.750
1 Month Libor (CME)-$3,000,000; pts of 100%
5,157
1,861
1.4100
1.4146
.7683
.7693
.7669
.7677
.7678
.7679
0.000
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
June
1.0452
2.250
2.750
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
April
Jan'19
1.2297
1.2354
Mini DJ Industrial Average (CBT)-$5 x index
.9364
.9401
.7824
.7826
Country/
Coupon (%) Maturity, in years
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
June
.7858
.7867
Open
interest
Chg
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
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
June
1.4022
1.4048
0.000
146-010
145-050
.9315
.9348
Settle
Bonds | WSJ.com/bonds
Global Government Bonds: Mapping Yields
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
4,148
2,086
31.53
31.81
144-280 146-040
144-100 145-050
June
Sept
–1.00 524,291
–1.25 558,984
1.2256
1.2303
April
June
Mexican Peso (CME)-MXN 500,000; $ per MXN
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
May
July
Contract
High hilo
Low
Euro (CME)-€125,000; $ per €
Australian Dollar (CME)-AUD 100,000; $ per AUD
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
137,992
86,565
.9363
.9408
.7830
.7853
June
536.20
523.20
–.01 366,246
–.09 287,242
.9341
.9379
Swiss Franc (CME)-CHF 125,000; $ per CHF
April
May
June
July
Sept
Dec
12.34
12.38
.0050 1,790,594
.0350 2,067,478
.0600 2,190,119
British Pound (CME)-£62,500; $ per £
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
131,366
89,181
97.6800
97.5050
97.2100
97.6600
97.4650
97.1500
Open
Canadian Dollar (CME)-CAD 100,000; $ per CAD
–.325 16,403
–.550 101,812
–.10 120,674
–.15 78,286
97.6900
97.5150
97.2200
Chg
Currency Futures
52.125
73.275
117.45
119.40
97.6800
97.4700
97.1550
Open
interest
Settle
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
436,292
372,698
171,831
190,542
256,338
141,483
2.70 165,339
3.10 150,457
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
May
July
506.75
525.50
585.00
595.50
Cattle-Live (CME)-40,000 lbs.; cents per lb.
336
151,047
386.30
390.10
31.46
31.73
7.50 199,208
7.25 150,859
491.25
509.00
608.25
617.50
136.900
137.075
April
May
22
72,894
2.50 296,811
2.75 301,784
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
May
July
589.75
601.00
June
Dec
Dec'19
472.25
488.50
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
21,123
2,287
1033.75
1044.75
375.50
379.00
507.25
525.75
Contract
High hilo
Low
Open
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
388.50
397.00
Soybeans (CBT)-5,000 bu.; cents per bu.
May
July
Open
interest
Chg
Interest Rate Futures
382.00
390.75
Oats (CBT)-5,000 bu.; cents per bu.
May
July
496.50
515.00
May
July
1,635
369,625
52,674
7,029
48,750
3,446
Corn (CBT)-5,000 bu.; cents per bu.
382.00
392.00
459.25
475.50
Wheat (MPLS)-5,000 bu.; cents per bu.
Agriculture Futures
May
July
472.75
489.00
Wheat (KC)-5,000 bu.; cents per bu.
May
July
3.0540 –0.0155
1,399
3.0585 –0.0160 131,576
Gold (CMX)-100 troy oz.; $ per troy oz.
April
1326.50 1333.00
1319.00 1331.90
7.60
June
1329.70 1339.10
1322.60 1336.10
7.60
Aug
1336.20 1345.00
1328.90 1342.30
7.60
Oct
1341.20 1349.50
1338.00 1348.50
7.70
Dec
1349.70 1357.50
1343.80 1355.00
7.70
Dec'19
1394.00 1394.20
1393.60 1394.80
7.80
Palladium (NYM) - 50 troy oz.; $ per troy oz.
June
902.75
909.35
t 890.85
895.15 –4.95
Sept
894.30
905.95
t 889.80
892.30 –4.30
Platinum (NYM)-50 troy oz.; $ per troy oz.
April
907.50
907.50
t 905.50
912.00
2.20
July
915.70
920.60
t 910.30
917.50
2.20
Silver (CMX)-5,000 troy oz.; $ per troy oz.
April
16.300
16.320
16.285
16.332 0.012
May
16.355
16.475
16.240
16.362 0.007
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
May
63.72
63.79
61.81
62.06 –1.48
June
63.70
63.77
61.86
62.10 –1.44
July
63.50
63.56
61.73
61.96 –1.38
Sept
62.62
62.70
61.05
61.26 –1.30
Dec
61.06
61.43
59.91
60.14 –1.15
Dec'19
56.85
57.13
55.95
56.14 –0.99
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
May
1.9850
1.9911
1.9482
1.9578 –.0187
June
1.9819
1.9879
1.9456
1.9544 –.0198
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
May
1.9890
1.9902
1.9383
1.9547 –.0269
June
1.9929
1.9942
1.9430
1.9585 –.0272
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
May
2.681
2.717
2.675
2.701
.026
June
2.735
2.768
2.729
2.747
.018
July
2.797
2.829
2.790
2.804
.013
Sept
2.804
2.838
2.804
2.816
.013
Oct
2.816
2.850
2.816
2.829
.012
Jan'19
3.075
3.101
3.075
3.088
.013
461.50
477.00
May
July
Open
Chg interest
Copper-High (CMX)-25,000 lbs.; $ per lb.
April
May
Settle
Wheat (CBT)-5,000 bu.; cents per bu.
Metal & Petroleum Futures
Open
Contract
High hilo
Low
Open
-0.85 -1.3
S
T
V
...
...
NA
NA
...
NA BalAdml
...
NA
...
NA
-2.55
-0.36
-0.63
-1.57
-1.58
-1.90
-0.93
-0.19
-0.09
-1.91
-0.49
-1.00
+0.03
-0.08
...
3.5
-0.3
-3.1
-2.2
1.9
-2.1
3.1
-0.6
-1.6
1.4
-1.5
4.1
-1.4
-0.7
NA
33.96
11.57
CAITAdml
CapOpAdml r 151.65
38.39
EMAdmr
74.84
EqIncAdml
90.73
ExplrAdml
ExtndAdml
83.58
GNMAAdml 10.27
71.76
GrwthAdml
HlthCareAdml r 82.57
HYCorAdml r 5.77
25.30
InfProAd
97.19
IntlGrAdml
ITBondAdml 11.06
ITIGradeAdml 9.50
LTGradeAdml 10.03
MidCpAdml 188.00
11.21
MuHYAdml
13.86
MuIntAdml
MuLTAdml
11.40
10.81
MuLtdAdml
-0.40
...
-3.62
-0.55
-1.42
-1.89
-1.60
+0.02
-1.69
-1.86
...
+0.09
-1.25
+0.04
+0.03
+0.08
-4.15
+0.01
+0.01
+0.01
...
-1.7
-1.1
-1.3
0.7
-3.5
2.6
-1.1
-1.1
-0.6
-2.3
-1.2
-0.9
1.7
-1.9
-1.8
-4.5
-1.5
-1.0
-1.2
-1.4
-0.3
-1.4
-1.2
-2.2
-5.6
-1.0
-0.5
-1.0
-1.1
-1.2
-1.3
-1.4
-1.4
-1.5
-1.5
-0.8
0.9
-2.7
-2.6
-3.6
-2.1
-1.1
-3.0
-1.6
-1.1
-2.0
Net YTD
NAV Chg % Ret
DevMktsIndInst 14.16
DevMktsInxInst 22.13
83.57
ExtndInst
71.76
GrwthInst
10.31
InPrSeIn
237.38
InstIdx
237.39
InstPlus
57.93
InstTStPlus
MidCpInst
41.53
MidCpIstPl
204.82
69.49
SmCapInst
SmCapIstPl 200.59
STIGradeInst 10.51
10.51
TotBdInst
10.48
TotBdInst2
10.51
TotBdInstPl
TotIntBdIdxInst 32.76
TotIntlInstIdx r 120.41
TotItlInstPlId r 120.43
65.18
TotStInst
39.81
ValueInst
-0.10 -1.5
-0.16 -1.5
-1.61 -1.1
-1.69 -0.6
+0.04 -0.8
-5.31 -2.1
-5.32 -2.1
-1.26 -1.9
-0.92 -1.5
-4.52 -1.5
-1.37 -1.5
-3.95 -1.5
+0.01 -0.5
+0.03 -1.5
+0.03 -1.6
+0.03 -1.5
+0.03
0.9
-1.08 -1.1
-1.08 -1.1
-1.42 -1.9
-0.84 -3.3
W
Western Asset
-1.7 CorePlusBdI
NA
...
NA
Dividend Changes
Dividend announcements from April 6.
Company
Symbol
Yld %
Amount
New/Old
Frq
Payable /
Record
Increased
Sabine Royalty Tr UBI
STRATS Sers 2006-1 P&amp;G
SBR
GJR
7.8 .2793 /.21068 M
2.9 .0522 /.04439 M
Apr30 /Apr16
Apr16 /Apr13
Foreign
Deutsche Bank
Teekay LNG Ptnrs un
Teekay Offshore Ptrs
Teekay Offshore Ptrs Pfd
DB
TGP
TOO
TOOpA
1.0
3.1
1.6
8.8
.13556
.14
.01
.4531
A
Q
Q
Q
May29 /
May11 /May04
May11 /May04
May15 /May08
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO:
spin-off.
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | B9
* * * *
BIGGEST 1,000 STOCKS
YTD 52-Week
% Chg Hi Lo Stock
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:
h-Does not meet continued listing
v-Trading halted on primary market.
s-New 52-week high.
standards
vj-In bankruptcy or receivership or
t-New 52-week low.
lf-Late filing
being reorganized under the
dd-Indicates loss in the most recent q-Temporary exemption from Nasdaq Bankruptcy Code, or securities
four quarters.
requirements.
assumed by such companies.
FD-First day of trading.
t-NYSE bankruptcy
Stock tables reflect composite regular trading as of 4 p.m. and changes in the closing prices from 4 p.m. the previous day.
YTD 52-Week
% Chg Hi Lo Stock
Friday, April 6, 2018
YTD 52-Week
% Chg Hi Lo Stock
Yld
Net
Sym % PE Last Chg
ABC
ABB 3.7 22 22.32 -0.37
-16.78 28.67 21.92 ABB
ADT ... ... 8.75 -0.06
... 13.02 7.36 ADT
AES 4.6 dd 11.42 -0.08
5.45 12.05 9.87 AES
AFL 4.8 7 43.37 -0.33
-1.18 45.88 36.32 Aflac
AGNC 11.4 10 18.95 0.10
-6.14 22.34 17.84 AGNC Invt
27.34 15.77 10.24 ANGI Homesvcs ANGI ... dd 13.32 -0.30
ANSS ... 51 153.51 -4.28
4.01 171.92 104.65 Ansys
ASML 0.9 ... 194.63 -4.05
11.97 216.00 126.03 ASML
T
5.6 7 35.63 -0.51
-8.36 40.86 32.55 AT&T
ABT 1.9214 57.57 -2.29
0.88 64.60 42.31 AbbottLabs
ABBV 4.3 27 89.78 -2.43
-7.17 125.86 63.12 AbbVie
ABMD ...145 286.22 -5.91
52.72 304.28 117.36 Abiomed
ACN 1.8 26 147.38 -4.19
-3.73 165.58 114.82 Accenture
ATVI 0.5146 64.56 -1.97
1.96 79.63 48.41 ActivisionBliz
ADNT 1.7 11 63.92 -0.36
-18.78 86.42 57.40 Adient
24.75 231.34 128.21 AdobeSystems ADBE ... 58 218.61 -4.93
12.26 151.72 78.81 AdvanceAuto AAP 0.2 17 111.91 -4.48
-6.52 15.65 9.04 AdvMicroDevices AMD ...320 9.61 -0.41
8.80 7.52 5.86 AdvSemiEngg ASX 3.2 16 7.05 -0.06
AEG 5.1 8 6.79
...
7.78 7.03 4.73 Aegon
AER ... 9 51.43 -1.05
-2.24 55.66 42.35 AerCap
AET 1.2 30 170.38 -0.33
-5.55 194.40 127.86 Aetna
-14.04 217.00 148.81 AffiliatedMgrs AMG 0.7 15 176.44 -5.57
A
0.9108 63.65 -2.03
-4.96 75.00 52.31 AgilentTechs
AEM 1.0 41 42.55 0.51
-7.86 51.86 37.35 AgnicoEagle
APD 2.8 34 159.96 -4.15
-2.51 175.17 134.17 AirProducts
AKAM ... 55 69.34 -2.95
6.61 78.28 44.65 AkamaiTech
ALK 2.1 7 60.77 -1.34
-17.33 95.75 57.60 AlaskaAir
ALB 1.5 21 91.80 -3.97
-28.22 144.99 86.75 Albemarle
AA
... 42 48.05 0.44
-10.80 57.50 29.55 Alcoa
-6.52 134.37 111.59 AlexandriaRlEst ARE 2.9 78 122.07 -1.10
-8.65 149.34 96.18 AlexionPharm ALXN ... 56 109.24 -0.07
BABA ... 44 167.52 -5.05
-2.85 206.20 106.76 Alibaba
ALGN ... 86 245.23 -10.12
10.37 287.32 113.40 AlignTech
ALKS ... dd 42.18 -0.51
-22.93 71.22 41.15 Alkermes
Y
...111 592.02 -16.08
-0.68 639.42 521.07 Alleghany
ALLE 1.0 30 84.75 -1.19
6.52 89.81 74.40 Allegion
AGN 1.8 dd 161.52 -3.61
-1.26 256.80 142.81 Allergan
ADS 1.1 15 205.75 -4.18
-18.83 278.33 203.66 AllianceData
LNT 3.3 21 41.02 -0.31
-3.73 45.55 36.84 AlliantEnergy
ALL 1.9 11 95.90 -1.23
-8.41 105.36 79.09 Allstate
ALLY 2.0 13 26.62 -0.59
-8.71 31.29 18.11 AllyFinancial
-25.16 153.99 47.16 AlnylamPharm ALNY ... dd 95.08 -1.36
GOOGL ... 56 1009.95 -22.69
-4.12 1198.00 834.60 Alphabet A
GOOG ... 56 1007.04 -20.77
-3.76 1186.89 817.02 Alphabet C
AABA ... 3 67.55 -1.83
-3.29 80.56 45.96 Altaba
ATUS ... 9 18.50 -0.21
-12.86 35.29 17.58 AlticeUSA
MO 4.4 12 63.85 -0.69
-10.59 77.79 59.07 Altria
ACH ... 40 13.65 -0.21
-23.87 23.54 11.01 AlumofChina
AMZN ...229 1405.23 -46.52
20.16 1617.54 884.49 Amazon.com
6.19 7.43 5.30 Ambev
ABEV ... 47 6.86 -0.30
DOX 1.5 21 65.59 -1.32
0.17 71.72 60.30 Amdocs
UHAL ... 9 345.80 -12.09
-8.50 400.99 326.30 Amerco
AEE 3.2 26 57.13 -0.31
-3.15 64.89 51.89 Ameren
13.35 19.76 14.22 AmericaMovil AMX 1.6 46 19.44 -0.01
13.55 19.61 14.10 AmericaMovil A AMOV 1.6 45 19.31 -0.13
AAL 0.8 13 50.29 -1.85
-3.34 59.08 41.28 AmerAirlines
AEP 3.6 18 68.53 -0.41
-6.85 78.07 63.32 AEP
AXP 1.5 32 91.91 -2.29
-7.45 102.39 75.51 AmerExpress
AFG 1.3 21 109.67 -2.03
1.04 121.69 93.25 AmericanFin
AIG 2.4 dd 53.60 -0.95
-10.04 67.30 52.42 AIG
-0.36 155.28 121.57 AmerTowerREIT AMT 2.1 53 142.16 -1.92
-10.46 92.37 74.63 AmerWaterWorks AWK 2.0 35 81.92 -0.19
AMP 2.3 15 141.31 -4.66
-16.62 183.90 118.84 Ameriprise
-6.98 106.27 71.90 AmerisourceBrgn ABC 1.8 18 85.41 -1.97
AME 0.8 25 73.54 -2.87
1.48 79.32 53.19 Ametek
AMGN 3.1 65 168.14 -3.86
-3.31 201.23 152.16 Amgen
APH 0.9 40 82.57 -2.20
-5.96 93.62 68.56 Amphenol
9.73 63.55 39.96 AnadarkoPetrol APC 1.7 dd 58.86 -1.25
-0.81 98.38 74.65 AnalogDevices ADI 2.2 42 88.31 -2.63
-6.51 121.71 75.11 Andeavor
ANDV 2.2 11 106.90 -0.86
ANDX 8.9 20 44.91 -0.79
-2.77 55.78 42.17 AndeavorLog
BUD 3.5 27 107.94 -2.10
-3.24 126.50 101.21 AB InBev
NLY 11.5 8 10.48 0.06
-11.86 12.73 10.00 AnnalyCap
... 10 20.11 -0.16
5.84 23.56 16.31 AnteroResources AR
ANTM 1.3 16 224.78 -5.95
-0.10 267.95 164.65 Anthem
AON 1.0 ... 138.20 -1.97
3.13 152.78 118.10 Aon
APA 2.6 11 38.34 -0.41
-9.19 54.64 33.60 Apache
AIV 3.7893 41.07 -0.19
-6.04 46.72 37.97 ApartmtInv
-11.50 37.35 24.83 ApolloGlbMgmt APO 8.9 10 29.62 -0.59
AAPL 1.5 17 168.38 -4.42
-0.50 183.50 140.06 Apple
2.39 62.40 37.41 ApplMaterials AMAT 1.5 20 52.34 -1.95
APTV 1.0 17 83.82 -2.08
-1.19 96.91 61.53 Aptiv
-14.12 39.55 31.18 AquaAmerica WTR 2.4 25 33.69 -0.28
ARMK 1.1 18 38.55 -0.89
-9.80 46.09 36.06 Aramark
MT
... 5 31.08 -1.09
-3.81 37.50 19.59 ArcelorMittal
ACGL ... 21 85.41 -0.99
-5.91 102.60 83.16 ArchCapital
10.60 45.91 38.59 ArcherDaniels ADM 3.0 16 44.33 -0.10
ARNC 1.1 dd 22.54 -0.54
-17.28 31.17 21.75 Arconic
9.82 311.67 130.09 AristaNetworks ANET ... 48 258.72 -4.02
ARW ... 16 72.79 -3.32
-9.48 87.26 69.67 ArrowElec
AZN 5.4 30 35.42 0.07
2.07 36.70 28.43 AstraZeneca
4.31 158.66 95.01 AthenaHealth ATHN ...106 138.78 -5.61
ATH ... 7 47.55 -0.40
-8.04 55.22 45.15 Athene
TEAM ... dd 54.59 -1.38
19.93 62.25 30.83 Atlassian
-2.03 93.56 76.46 AtmosEnergy ATO 2.3 16 84.15 -0.38
ADSK ... dd 125.75 -2.27
19.96 141.26 83.55 Autodesk
ATHM ... ... 88.21 0.73
36.40 92.65 28.63 Autohome
ALV 1.7 30 146.63 -1.42
15.38 152.57 96.08 Autoliv
ADP 2.2 30 113.70 -3.81
-2.98 125.24 95.50 ADP
AZO ... 13 620.36 -17.02
-12.79 797.89 491.13 AutoZone
AVB 3.5 26 166.00 -0.23
-6.96 199.52 152.65 Avalonbay
AGR 3.4 41 50.97 -0.23
0.77 53.46 42.85 Avangrid
-10.15 123.67 79.13 AveryDennison AVY 1.7 33 103.20 -2.87
0.34 38.20 27.77 AxaltaCoating AXTA ...250 32.47 0.74
BBT 2.6 19 51.12 -1.77
2.82 56.31 41.17 BB&T
BCE 5.7 18 42.73 -0.39
-11.00 49.06 42.01 BCE
BHP 5.0 25 43.64 -0.84
-5.11 50.79 33.37 BHPBilliton
BBL 5.6 22 39.04 -0.54
-3.13 45.43 28.73 BHPBilliton
BOKF 1.8 19 98.73 -1.73
6.94 107.00 74.48 BOK Fin
BP 5.7 40 41.76 -0.16
-0.64 44.62 33.83 BP
BT 4.1 15 16.56 0.13
-9.11 21.16 15.41 BT Group
BWXT 1.0 44 64.59 -0.64
6.78 67.69 45.79 BWX Tech
BIDU ... 28 219.82 -5.75
-6.14 274.97 171.17 Baidu
BHGE 2.4 dd 29.58 -0.13
-6.51 40.82 25.53 BakerHughes
BLL 1.0 35 39.26 -1.02
3.73 43.24 35.60 Ball
...
-9.06 9.54 7.22 BancoBilbaoViz BBVA 9.7 13 7.73
BCH 3.1 19 99.73 -0.77
3.32 106.50 70.14 BancodeChile
BMA 0.7 13 108.40 -1.59
-6.45 136.10 82.68 BancoMacro
BSAC 3.1 18 33.86 -0.27
8.28 34.98 23.16 BcoSantChile
BSMX ... 11 7.42 -0.05
1.50 10.82 6.67 BcoSantMex
-0.31 7.57 5.74 BancoSantander SAN 4.6 13 6.52 -0.08
CIB 3.1 13 46.57 -0.19
17.42 48.74 36.38 BanColombia
0.37 33.05 22.07 BankofAmerica BAC 1.6 19 29.63 -0.69
-5.69 84.71 66.75 BankofMontreal BMO 3.9 14 75.47 -0.67
-6.52 58.99 45.88 BankNY Mellon BK 1.9 13 50.35 -1.38
-6.48 66.78 53.86 BkNovaScotia BNS 4.3 11 60.35 -0.64
-3.36 53.70 40.15 BankofOzarks OZRK 1.7 14 46.82 -1.76
BCS 1.9 dd 11.90 -0.13
9.17 12.47 9.29 Barclays
ABX 0.9 10 12.69 0.12
-12.30 20.36 11.07 BarrickGold
BAX 1.0 50 63.89 -1.63
-1.16 72.58 52.27 BaxterIntl
0.67 248.39 175.66 BectonDicknsn BDX 1.4165 215.50 -4.63
BGNE ... dd 164.48 0.13
68.32 182.79 34.36 BeiGene
WRB 0.8 17 72.20 -1.13
0.77 74.43 62.00 Berkley
-1.38 217.62 160.93 BerkHathwy B BRK.B ... 11 195.49 -5.36
0.30 326350 242180 BerkHathwy A BRK.A ... 11 298500 -3250.00
BERY ... 16 54.05 -1.13
-7.87 61.71 47.49 BerryGlobal
BBY 2.6 22 70.49 -1.63
2.95 78.59 47.68 BestBuy
BIO ... 64 244.10 -3.37
2.28 279.59 199.94 Bio-RadLab A
BIIB ... 22 257.65 -7.33
-19.12 370.57 244.28 Biogen
t -14.76 100.51 75.81 BioMarinPharm BMRN ... dd 76.01 -2.69
BKI ... 32 47.70 -1.05
8.04 53.00 41.10 BlackKnight
BB
... 11 10.19 -0.28
-8.77 14.55 7.51 BlackBerry
BLK 2.2 17 519.92 -18.48
1.21 594.52 375.51 BlackRock
BX 11.0 14 31.01 -0.29
-3.15 37.52 28.85 Blackstone
21.74 40.15 21.51 BlueBuffaloPet BUFF ... 41 39.92 -0.01
BLUE ... dd 162.70 -7.45
-8.65 236.17 74.45 bluebirdbio
BA 2.1 24 326.12 -10.28
10.58 371.60 175.47 Boeing
17.01 2228.99 1630.56 BookingHldgs BKNG ... 44 2033.41 -57.68
BWA 1.3 25 51.27 -1.20
0.35 58.22 37.54 BorgWarner
BXP 2.6 41 120.96 -1.31
-6.98 137.35 111.57 BostonProps
BSX ...391 27.35 -0.74
10.33 29.93 24.31 BostonSci
BAK 2.7 ... 27.56 -0.51
4.95 33.73 17.44 Braskem
2.23 105.04 70.79 BrightHorizons BFAM ... 37 96.10 -3.00
-14.32 75.00 49.05 BrighthouseFin BHF ... dd 50.24 -1.68
-0.65 70.05 51.56 Bristol-Myers BMY 2.6103 60.88 -1.43
-10.03 73.41 53.38 BritishAmTob BTI 4.5 1 60.27 0.20
-10.91 285.68 208.46 Broadcom
AVGO ... 13 228.87 -7.44
17.63 110.05 66.49 BroadridgeFinl BR 1.4 34 106.55 -2.46
-11.46 44.33 36.07 BrookfieldMgt BAM 1.6 29 38.55 -0.61
-7.16 46.88 37.54 BrookfieldInfr BIP 4.5 dd 41.60 -0.37
-2.49 26.93 20.66 Brown&Brown BRO 2.4 18 25.09 -0.37
-0.94 56.81 36.33 Brown-Forman B BF.B 1.2 35 54.42 -0.87
6.43 56.10 34.34 Brown-Forman A BF.A 1.2 27 53.20 -0.95
BPL 13.5 11 37.29 -0.56
-24.74 69.95 35.24 BuckeyePtrs
BG 2.4 85 75.59 0.45
12.69 83.75 63.87 Bunge
11.31 138.45 79.07 BurlingtonStrs BURL ... 25 136.94 -0.19
CA 3.1 33 33.18 -0.73
-0.30 37.25 30.45 CA
CBD ... 24 20.19 -0.22
-14.34 25.90 18.26 CBD Pao
CBRE ... 23 46.73 -1.06
7.90 48.39 32.46 CBRE Group
CBS 1.4 47 52.84 -0.04
-10.44 69.31 49.24 CBS B
CBS.A 1.4 47 53.13 -0.01
-11.12 70.00 49.33 CBS A
CDK 0.9 28 63.49 -0.80
-10.93 76.04 59.33 CDK Global
CDW 1.2 20 67.95 -1.77
-2.22 76.73 55.80 CDW
CF 3.3 24 36.83 -1.75
-13.42 45.00 25.04 CF Industries
GIB ... 21 57.39 -0.51
5.63 59.89 46.40 CGI Group
CHRW 2.0 25 90.48 -2.81
1.56 100.18 63.41 CH Robinson
CIT 1.3 30 51.08 -1.58
3.76 56.14 42.50 CIT Group
CME 1.8 13 158.26 -4.73
8.36 171.71 114.82 CME Group
CMS 3.2 28 45.32 -0.24
-4.19 50.85 40.48 CMS Energy
CNA 2.5 15 48.45 -1.12
-8.67 55.62 43.15 CNA Fin
CEO 5.4 18 142.77 -1.07
-0.55 166.23 108.05 CNOOC
CPL 1.9 28 14.54 -0.04
26.43 17.69 10.63 CPFLEnergia
CRH 3.5 13 33.95 -0.34
-5.93 39.32 32.47 CRH
CSX 1.6 9 54.35 -1.25
-1.20 60.04 46.04 CSX
CVS 3.2 10 63.38 -1.28
-12.58 84.00 60.14 CVS Health
COG 1.0105 23.17 -0.77
-18.99 29.57 21.40 CabotOil
-14.16 46.00 30.92 CadenceDesign CDNS ... 49 35.90 -1.08
CZR ... dd 11.00 -0.50
-13.04 14.50 9.45 CaesarsEnt
-7.79 96.39 78.19 CamdenProperty CPT 3.6 40 84.89 -0.14
Yld
Net
Sym % PE Last Chg
-9.10 59.14 40.99 CampbellSoup CPB 3.2 13 43.73
CM 4.9 10 87.27
-10.41 100.01 77.20 CIBC
CNI 2.0 21 73.98
-10.33 85.73 70.59 CanNtlRlwy
-7.56 37.63 27.52 CanNaturalRes CNQ 3.2 21 33.02
CP 1.0 14 173.14
-5.26 188.80 149.64 CanPacRlwy
CAJ 4.0 18 35.52
-5.03 40.67 30.79 Canon
COF 1.7 27 94.72
-4.88 106.50 76.05 CapitalOne
1.83 82.80 54.66 CardinalHealth CAH 3.0 11 62.39
-13.49 119.21 92.09 Carlisle
CSL 1.5 17 98.32
CG 6.5 8 20.25
-11.57 25.90 15.70 Carlyle
KMX ... 17 60.30
-5.97 77.64 55.05 CarMax
CCL 2.8 18 64.51
-2.80 72.70 57.39 Carnival
CUK 2.8 18 64.75
-2.31 72.29 56.79 Carnival
CAT 2.2114 142.99
-9.26 173.24 92.98 Caterpillar
-12.24 138.54 80.00 CboeGlobalMkts CBOE 1.0 31 109.34
CE 1.8 16 99.92
-6.69 114.00 83.34 Celanese A
CELG ... 24 86.95
-16.68 147.17 84.25 Celgene
CX
-8.40 10.37 6.43 Cemex
... 13 6.87
2.52 11.52 6.76 CenovusEnergy CVE 1.7 5 9.36
CNC ... 23 107.03
6.10 112.42 70.04 Centene
-5.18 30.45 25.84 CenterPointEner CNP 4.1 7 26.89
7.02 7.86 3.49 CentraisElBras EBR ... dd 6.10
CTL 12.6 10 17.21
3.18 27.61 13.16 CenturyLink
CERN ... 22 56.42
-16.28 73.86 55.29 Cerner
-7.53 408.83 298.67 CharterComms CHTR ... 9 310.67
CHKP ... 20 98.56
-4.88 119.20 95.03 CheckPoint
CC 1.4 12 48.68
-2.76 58.08 34.70 Chemours
0.97 60.22 40.36 CheniereEnergy LNG ... dd 54.36
-0.81 33.47 26.41 CheniereEnerPtrs CQP 6.8 dd 29.40
-1.16 29.73 24.03 CheniereEnHldgs CQH 7.5 54 27.37
CVX 3.9 24 114.76
-8.33 133.88 102.55 Chevron
-1.16 45.33 24.44 ChinaEastrnAir CEA ... 11 35.72
t -13.20 17.85 13.48 ChinaLifeIns
LFC 1.3 16 13.55
HTHT ... 51 129.74
-10.17 166.19 57.89 ChinaLodging
CHL 4.4 11 45.64
-9.70 56.93 44.55 ChinaMobile
s 24.07 92.60 69.60 ChinaPetrol
SNP 11.2 15 91.03
-2.78 70.52 32.50 ChinaSoAirlines ZNH 1.5 11 50.38
-7.10 53.77 41.28 ChinaTelecom CHA 3.0 13 44.10
CHU 0.6126 12.71
-6.06 16.55 11.87 ChinaUnicom
CMG ... 52 318.07
10.05 499.00 247.51 Chipotle
CB 2.1 16 134.13
-8.21 157.50 131.14 Chubb
8.83 39.06 33.00 ChunghwaTel CHT 4.2 24 38.57
-1.34 54.18 43.21 Church&Dwight CHD 1.8 17 49.50
CI
-17.37 227.13 149.10 Cigna
0.0 19 167.82
-25.86 130.16 87.98 CimarexEnergy XEC 0.7 17 90.46
CINF 2.9 12 73.00
-2.63 81.98 68.49 CincinnatiFin
CTAS 1.0 27 166.74
7.00 178.34 119.54 Cintas
6.34 46.16 30.36 CiscoSystems CSCO 3.2 dd 40.73
C
1.9 dd 68.60
-7.81 80.70 57.55 Citigroup
CFG 2.1 13 41.48
-1.19 48.23 31.51 CitizensFin
4.30 96.96 73.33 CitrixSystems CTXS ... dd 91.78
CLX 3.0 21 128.51
-13.60 150.40 123.64 Clorox
KO 3.6163 43.92
-4.27 48.62 42.19 Coca-Cola
4.72 44.75 36.17 Coca-Cola Euro CCE 3.1 30 41.73
-5.04 91.84 63.90 Coca-Cola Femsa KOF 2.8 dd 66.11
CGNX 0.4 50 49.29
-19.41 72.99 39.73 Cognex
11.33 85.10 57.50 CognizantTech CTSH 1.0 31 79.07
CL 2.3 31 71.64
-5.05 77.91 67.86 ColgatePalm
CMCSA 2.2 7 34.12
-14.81 44.00 32.74 Comcast A
CMA 1.3 23 94.92
9.34 102.66 64.04 Comerica
5.57 61.88 49.43 CommerceBcshrs CBSH 1.6 20 58.95
COMM ... 40 38.93
2.91 42.75 30.95 CommScope
SBS ... 9 10.04
-3.92 11.96 8.15 SABESP
-2.47 41.03 32.16 ConagraBrands CAG 2.3 17 36.74
CXO ... 21 133.63
-11.04 162.91 106.73 ConchoRscs
7.96 61.31 42.27 ConocoPhillips COP 1.9 dd 59.26
ED 3.6 16 78.56
-7.52 89.70 73.73 ConEd
... 230.55 170.08 ConstBrands B STZ.B 1.2 23 227.50
-0.60 231.83 168.44 ConstBrands A STZ 1.3 22 227.19
11.23 61.67 29.08 ContinentalRscs CLR ... 28 58.92
COO 0.0 63 217.98
0.05 260.26 194.55 Cooper
CPRT ... 35 49.66
14.98 51.77 28.89 Copart
t -17.01 35.10 26.30 Corning
GLW 2.7 dd 26.55
CSGP ... 97 351.28
18.30 378.57 201.43 CoStar
COST 1.1 27 183.96
-1.16 199.88 150.00 Costco
COTY 2.7 dd 18.29
-8.04 21.68 14.24 Coty
BAP 2.1 15 234.68
13.14 239.04 150.71 Credicorp
-2.23 377.82 185.52 CreditAcceptance CACC ... 13 316.26
CS 4.4 dd 16.16
-9.47 19.98 13.28 CreditSuisse
CCI 3.9106 108.01
-2.70 114.97 93.14 CrownCastle
-13.32 62.27 48.27 CrownHoldings CCK ... 21 48.76
CTRP ... 78 44.80
1.59 60.65 42.65 Ctrip.com
CFR 2.2 19 104.67
10.59 111.10 81.09 Cullen/Frost
CMI 2.7 27 157.90
-10.61 194.18 143.83 Cummins
10.17 140.07 82.77 CurtissWright CW 0.4 28 134.24
CY 2.7 dd 16.29
6.89 18.87 12.50 CypressSemi
DEF
-19.35 66.50 36.00 DISH Network DISH ... 9 38.51
DTE 3.4 16 104.06
-4.93 116.74 97.66 DTE Energy
DXC 0.7 33 99.76
5.12 107.85 73.51 DXC Tech
DHR 0.7 27 96.66
4.14 104.82 78.97 Danaher
DRI 2.9 20 86.86
-9.54 100.11 76.27 Darden
DVA ... 18 63.03
-12.76 80.71 52.51 DaVita
DE 1.7 33 145.39
-7.10 175.26 107.04 Deere
DVMT ... dd 71.29
-12.29 92.40 59.92 DellTechs
DAL 2.3 11 53.05
-5.27 60.79 43.81 DeltaAir
-25.54 68.98 48.25 DentsplySirona XRAY 0.7 dd 49.02
-27.12 20.23 13.52 DeutscheBank DB 1.0 dd 13.87
DVN 1.0 12 31.45
-24.03 45.16 28.79 DevonEnergy
DXCM ... dd 70.15
22.23 81.91 42.62 DexCom
DEO 2.0 21 139.17
-4.70 147.62 113.67 Diageo
-7.63 134.60 82.77 DiamondbkEner FANG ... 23 116.62
DLR 3.9103 104.30
-8.43 127.23 96.56 DigitalRealty
-8.55 81.93 57.50 DiscoverFinSvcs DFS 2.0 13 70.34
DISCA ... dd 22.62
1.07 30.25 15.99 DiscoveryA
DISCK ... dd 20.73
-2.08 29.18 14.99 DiscoveryC
DIS 1.7 14 100.35
-6.66 116.10 96.20 Disney
DLB 1.0100 63.01
1.63 74.29 48.00 DolbyLab
DG 1.2 17 94.97
2.11 105.82 65.97 DollarGeneral
DLTR ... 14 98.72
-8.00 116.65 65.63 DollarTree
t -18.31 85.30 66.10 DominionEner D
5.0 13 66.22
DPZ 1.0 40 231.46
22.49 236.93 166.74 Domino's
DCI 1.6 43 43.93
-10.26 52.20 42.59 Donaldson
-12.81 41.59 34.72 DouglasEmmett DEI 2.8 62 35.80
DOV 2.0 18 93.19
-7.72 109.06 76.47 Dover
DWDP 2.4 41 63.71
-10.54 77.08 61.27 DowDuPont
22.19 126.65 83.23 DrPepperSnap DPS 2.0 20 118.60
DBX ... ... 30.24
... 34.37 27.75 DropBox
DUK 4.6 18 78.16
-7.07 91.80 72.93 DukeEnergy
DRE 3.1 34 25.68
-5.62 30.14 24.30 DukeRealty
E
9.88 37.48 29.44 ENI
... 17 36.47
EOG 0.7 23 101.93
-5.54 119.00 81.99 EOG Rscs
3.33 125.88 73.86 EPAM Systems EPAM ... 85 111.01
EQT 0.3 7 46.90
-17.60 67.84 43.70 EQT
ETFC ... 26 55.24
11.44 58.49 33.06 E*TRADE
-0.69 69.25 48.76 EastWestBncp EWBC 1.3 17 60.41
11.02 112.45 76.11 EastmanChem EMN 2.2 10 102.85
ETN 2.0 11 75.97
-3.85 89.85 69.82 Eaton
EV 2.3 22 54.35
-3.62 60.95 42.20 EatonVance
EBAY ... dd 39.09
3.58 46.99 31.89 eBay
s 4.17 141.99 124.46 Ecolab
ECL 1.2 27 139.78
EC
32.33 20.55 8.61 Ecopetrol
... 18 19.36
EIX 3.8 37 63.38
0.22 83.38 57.63 EdisonInt
EW ... 51 137.51
22.00 143.22 92.90 EdwardsLife
12.66 131.13 88.07 ElectronicArts EA
... 37 118.36
EMR 2.9 27 66.31
-4.85 74.45 56.77 EmersonElec
-28.96 19.58 9.05 EnbridgeEnPtrs EEP 14.3 19 9.81
ENB 6.8 24 31.23
-20.15 42.92 29.54 Enbridge
ECA 0.5 13 10.92
-18.08 14.31 8.01 Encana
16.54 59.70 42.21 EncompassHealth EHC 1.7 21 57.58
6.18 12.11 9.07 EnelAmericas ENIA 0.8 19 11.86
ENIC 2.0 11 6.21
9.33 6.55 5.03 EnelChile
EOCC 2.0 10 24.56
-8.73 29.41 21.65 EnelGenChile
EGN ... 20 61.19
6.29 63.81 46.16 Energen
-17.79 19.55 12.80 EnergyTransferEq ETE 8.6 17 14.19
-7.70 24.64 15.06 EnergyTransfer ETP 13.7 7 16.54
ETR 4.5 35 78.98
-2.96 87.95 71.95 Entergy
-8.64 29.51 23.10 EnterpriseProd EPD 7.0 19 24.22
EFX 1.3 24 117.58
-0.29 147.02 89.59 Equifax
EQIX 2.2136 407.04
-10.19 495.35 370.79 Equinix
ELS 2.5 40 86.99
-2.28 91.94 78.85 EquityLife
-1.13 70.45 54.97 EquityResdntl EQR 3.4 55 63.05
ERIC 2.0 dd 6.21
-7.04 7.47 5.52 Ericsson
ESS 3.1 37 242.38
0.42 270.04 214.03 EssexProp
s 18.08 153.14 83.67 EsteeLauder
EL 1.0 52 150.25
RE 2.0 23 254.25
14.91 277.17 208.81 EverestRe
-5.59 66.15 55.93 EversourceEner ES 3.4 19 59.65
EXEL ... 43 21.09
-30.62 32.50 18.03 Exelixis
EXC 3.6 10 38.63
-1.98 42.67 33.30 Exelon
EXPE 1.1 45 107.55
-10.20 161.00 98.52 Expedia
-4.79 67.63 51.96 ExpeditorsIntl EXPD 1.4 23 61.59
-9.06 85.07 55.80 ExpressScripts ESRX ... 9 67.88
-0.72 88.56 71.34 ExtraSpaceSt EXR 3.6 23 86.82
XOM 4.1 16 74.87
-10.49 89.30 72.16 ExxonMobil
FFIV ... 22 140.71
7.23 153.91 114.63 F5Networks
FMC 0.8 20 78.13
-17.46 98.70 69.93 FMC
FB
-10.91 195.32 138.81 Facebook
... 29 157.20
FDS 1.2 31 193.65
0.46 217.36 155.09 FactSet
FAST 2.8 27 53.65
-1.90 58.73 39.79 Fastenal
-12.82 138.12 106.41 FederalRealty FRT 3.5 40 115.78
FDX 0.9 14 234.29
-6.11 274.66 182.89 FedEx
RACE ... 38 120.75
15.18 131.20 69.59 Ferrari
FCAU ... 9 22.31
25.06 24.95 9.56 FiatChrysler
34.29 22.05 8.70 FibriaCelulose FBR ... 32 19.74
FNF 3.1 16 38.52
-1.83 42.52 27.52 FidNatlFin
FIS 1.3 24 95.53
1.53 103.65 79.43 FidNatlInfo
2.97 34.57 23.20 FifthThirdBncp FITB 2.0 11 31.24
WUBA ... 60 76.97
7.55 87.65 34.84 58.com
FAF 2.7 15 56.44
0.71 62.71 37.80 FirstAmerFin
FDC ... 10 15.47
-7.42 19.23 14.67 FirstData
-7.10 20.86 15.84 FirstHorizonNatl FHN 2.6 27 18.57
3.68 105.52 84.56 FirstRepBank FRC 0.8 21 89.83
FSLR ... dd 69.70
3.23 76.61 26.41 FirstSolar
FE 4.2 dd 34.20
11.69 35.22 27.93 FirstEnergy
FISV ... 24 69.84
6.52 74.45 57.56 Fiserv
FLT ... 25 196.34
2.03 213.74 121.52 FleetCorTech
FLEX ... 16 15.99
-11.12 19.71 14.70 Flex
FLIR 1.3 64 50.19
7.66 52.88 33.95 FlirSystems
FLS 1.82159 43.18
2.49 51.92 37.51 Flowserve
FLR 1.5 42 56.72
9.82 62.09 37.04 Fluor
-0.09 103.82 84.32 FomentoEconMex FMX 1.6 30 93.82
F
-10.49 13.48 10.14 FordMotor
5.4 6 11.18
New Highs and Lows | WSJ.com/newhighs
Stock
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE American
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.
Friday, April 6, 2018
Stock
52-Wk %
Sym Hi/Lo Chg Stock
Highs
Abercrombie&Fitch ANF
AllstatePfdG
ALLpG
AtHomeGroup
HOME
BGStaffing
BGSF
BloominBrands BLMN
BrookfieldBusPtr BBU
CASI Pharm
CASI
CaledoniaMining CMCL
Caleres
CAL
CallawayGolf
ELY
CareDx
CDNA
27.54
25.23
35.60
19.70
25.00
41.42
7.59
8.30
36.00
17.24
8.71
2.5
...
-1.0
-0.9
-0.4
-1.2
14.0
-1.0
-1.7
-0.9
0.7
52-Wk %
Sym Hi/Lo Chg Stock
CentralGarden
CENT
CharterFin
CHFN
ChinaPetrol
SNP
CitiTrends
CTRN
ColliersIntl
CIGI
ColumbiaSportswr COLM
DelekUS
DK
Denny's
DENN
Ecolab
ECL
EsteeLauder
EL
FennecPharm
FENC
51job
JOBS
GDL Fd PfdC
GDLpC
GOL Linhas
GOL
0.25
-1.30
-0.67
-0.78
-3.56
-0.96
-2.80
-1.45
-5.07
-0.65
-1.94
-1.00
-0.85
-5.14
-2.26
-2.39
-1.89
-0.01
-0.13
-1.92
-0.40
-0.58
-0.15
-1.70
-6.35
-1.79
-1.40
-1.85
-0.32
-0.43
-2.53
-0.63
-0.25
-2.59
0.14
-0.58
-0.93
-0.41
0.06
-9.64
-1.64
-0.23
-0.36
-1.21
-3.49
-1.35
-4.96
-1.09
-1.62
-1.54
-0.93
-1.74
-0.48
0.03
-0.39
-1.05
-1.85
-0.17
-0.48
-3.02
-1.41
-0.86
-0.24
-0.07
-6.02
-1.20
-0.33
-1.50
-2.74
-1.81
-5.57
-1.09
-0.91
-4.01
-2.29
-0.16
-2.44
-10.56
-0.33
-1.79
-1.44
-1.07
-3.04
-4.52
-4.69
-0.39
43.30
22.15
92.60
32.30
71.40
80.22
43.42
16.37
141.99
153.14
14.34
89.59
50.95
14.44
-1.0
-1.7
-0.6
0.6
-1.7
-1.2
-1.3
0.4
-1.0
-0.8
8.0
-0.6
0.4
13.0
52-Wk %
Sym Hi/Lo Chg
5.89 31.7
Genprex
GNPX
24.08 -1.1
Gentex
GNTX
23.20 -0.6
Guess
GES
78.23 -1.2
HailiangEduc
HLG
101.59 -0.9
Herbalife
HLF
7.90 1.9
HoustonWire
HWCC
65.40 -1.4
ICF Intl
ICFI
37.00 0.6
Independence
IHC
KBLMergerIV
KBLMU 10.45 0.4
MagellanHealth MGLN 110.10 -2.4
7.40 2.8
ManhattanBridge LOAN
3.39 21.7
MarroneBioInnova MBII
98.51 0.6
Medifast
MED
24.15 0.4
MyersIndustries MYE
-0.95
-0.57
-2.37
-2.56
0.19
-1.16
-5.95
-1.52
-1.16
-1.07
-0.45
-0.84
-2.13
-0.52
-7.79
-0.91
-1.79
-0.01
...
-1.76
-1.59
-1.43
-0.28
-1.12
-4.33
-0.87
-0.35
-4.50
-1.73
-0.05
-0.30
-0.44
-0.29
-0.02
-2.45
-2.68
-1.84
-1.60
-1.65
-2.47
-3.28
-1.51
-0.94
-1.47
-0.32
-0.28
-3.40
-2.87
-2.10
-0.18
-0.26
-0.20
-1.42
0.08
-0.08
-0.03
-1.70
-0.18
-0.21
-0.78
-0.20
-2.04
-6.55
0.06
-0.24
-0.02
0.88
-1.23
-2.14
-0.36
-1.01
-0.37
-2.56
-1.86
-1.30
-0.96
-1.15
-2.53
-1.41
-2.14
-3.10
-1.94
-2.50
-6.78
-0.59
-0.27
0.18
-0.44
-1.93
-1.09
-1.19
-1.31
-0.35
-0.63
-1.98
-1.94
-0.15
-1.40
-3.87
-0.40
-1.09
-1.63
-1.82
-1.55
-0.17
24.35
-8.04
3.28
-14.20
-15.18
-23.33
-8.60
-4.02
55.34
38.24
80.31
73.62
86.06
47.65
20.25
57.94
Yld
Net
Sym % PE Last Chg
FTNT
35.44 Fortinet
FTS
31.41 Fortis
FTV
59.88 Fortive
56.59 FortBrandsHome FBHS
64.90 Franco-Nevada FNV
BEN
32.91 FranklinRscs
11.05 FreeportMcM FCX
41.55 FreseniusMed FMS
...320
4.0 19
0.4 25
1.4 19
1.4 65
2.8 28
... 14
1.1 22
54.33
33.72
74.72
58.72
67.81
33.22
17.33
50.44
-0.26
0.12
-2.70
-1.23
0.19
-0.83
-0.78
-0.31
GGP 4.3 30 20.25
-13.42 24.37 18.83 GGP
AJG 2.4 26 67.09
6.02 72.77 54.50 Gallagher
-8.86 39.32 32.51 Gaming&Leisure GLPI 7.5 19 33.72
GPS 3.1 14 30.84
-9.45 35.68 21.02 Gap
-12.08 38.00 19.91 GardnerDenver GDI ... dd 29.83
GRMN 3.5 16 58.42
-1.93 65.96 48.50 Garmin
IT
...3876 116.29
-5.57 142.16 108.44 Gartner
-8.36 11.00 9.01 Gazit-Globe
GZT ... 4 9.65
6.04 230.00 185.64 GeneralDynamics GD 1.7 23 215.74
GE 3.7 dd 13.06
-25.16 30.54 12.73 GeneralElec
GIS 4.3 12 45.47
-23.31 60.69 43.84 GeneralMills
-8.08 46.76 31.92 GeneralMotors GM 4.0 dd 37.68
G
0.8 23 31.34
-1.26 34.79 23.34 Genpact
s 13.03 24.08 16.59 Gentex
GNTX 1.9 17 23.68
GPC 3.2 21 89.26
-6.05 107.75 79.86 GenuineParts
GGB 0.8 dd 4.73
27.15 5.32 2.60 Gerdau
GIL 1.5 18 29.13
-9.81 34.19 26.28 Gildan
2.47 89.54 63.76 GileadSciences GILD 3.1 21 73.41
GSK 6.4 51 39.93
12.57 44.53 34.52 GSK
8.51 118.94 76.47 GlobalPayments GPN 0.0 36 108.77
GDDY ...157 59.86
19.05 64.49 36.02 GoDaddy
GG 0.6 18 14.05
10.02 15.63 11.64 Goldcorp
-1.88 275.31 209.62 GoldmanSachs GS 1.2 29 249.97
GT 2.1 20 26.81
-17.02 36.74 25.88 Goodyear
GGG 1.2 31 45.09
-0.29 49.69 30.80 Graco
GWW 1.8 29 286.67
21.34 298.14 155.00 Grainger
-3.85 34.72 27.60 GreatPlainsEner GXP 3.5 dd 31.00
GRFS 2.1 22 20.22
-11.78 25.18 18.79 Grifols
GRUB ... 87 97.09
35.22 112.41 33.06 GrubHub
1.24 119.87 87.66 GpoAeroportuar PAC 2.9 23 104.03
AVAL 4.0 14 8.74
2.82 9.51 7.76 GpoAvalAcc
0.93 73.45 36.09 GpoFinGalicia GGAL 0.0 18 66.46
-2.73 27.37 14.20 GrupoTelevisa TV 0.5 47 18.16
GWRE ... dd 80.91
8.96 92.65 58.25 Guidewire
9.56 106.84 71.18 HCA Healthcare HCA 1.5 16 96.24
HCP 6.4 27 23.20
-11.04 33.67 21.48 HCP
HDB 0.5 ... 98.71
-2.91 110.77 75.77 HDFC Bank
HDS ... dd 38.05
-4.95 42.25 28.97 HD Supply
HPQ 2.7 9 20.78
-1.09 24.75 17.10 HP
HSBC 8.9 19 47.17
-8.66 55.89 39.63 HSBC
HAL 1.5 dd 47.00
-3.83 57.86 38.18 Halliburton
HBI 3.2126 18.88
-9.71 25.73 17.94 Hanesbrands
-17.08 62.95 41.33 HarleyDavidson HOG 3.5 14 42.19
HRS 1.4 38 161.04
13.69 164.69 106.18 Harris
HIG 2.0182 51.12
-9.17 59.20 46.69 HartfordFinl
HAS 3.0 27 84.43
-7.11 116.20 83.40 Hasbro
HEI.A 0.2 37 71.45
12.98 75.55 45.50 Heico A
HEI 0.2 45 87.26
15.61 91.34 53.85 Heico
HP 4.3 18 65.45
1.25 75.02 42.16 Helm&Payne
HSIC ... 25 66.78
-4.44 93.50 62.56 HenrySchein
s 45.45 101.59 57.42 Herbalife
HLF 1.2 41 98.50
HSY 2.7 27 98.85
-12.92 116.49 95.21 Hershey
HES 2.0 dd 51.09
7.63 55.48 37.25 Hess
16.30 19.48 12.70 HewlettPackard HPE 2.7 18 16.70
HXL 0.8 21 64.48
4.25 69.52 49.20 Hexcel
HLT 0.8 20 77.51
-2.94 88.11 55.91 Hilton
HFC 2.5 12 52.26
2.03 53.21 23.46 HollyFrontier
HOLX ... 10 36.43
-14.78 46.80 35.33 Hologic
HD 2.4 24 174.45
-7.96 207.60 144.25 HomeDepot
HMC ... 7 34.23
0.44 37.29 27.05 HondaMotor
HON 2.1 69 142.74
-6.92 165.13 122.40 Honeywell
HRL 2.1 21 34.93
-4.01 38.00 29.75 HormelFoods
DHI 1.1 17 45.35
-11.20 53.32 31.98 DR Horton
HST 4.3 25 18.45
-7.05 21.53 17.26 HostHotels
4.06 140.38 114.28 HowardHughes HHC ... 35 136.60
2.48 31.85 23.64 HuanengPower HNP 6.5 36 25.62
HUBB 2.6 27 117.39
-13.26 149.03 109.31 Hubbell
HUM 0.7 17 283.73
14.37 293.35 209.91 Humana
JBHT 0.9 18 109.93
-4.39 126.49 83.35 JBHunt
... 16.60 12.14 HuntingtonBcshs HBAN 3.0 15 14.56
8.74 276.69 183.42 HuntingIngalls HII 1.1 25 256.31
HUN 2.3 11 28.33
-14.90 36.09 23.12 Huntsman
H
... 38 74.91
1.86 83.02 52.72 HyattHotels
... 48 150.23
22.86 166.64 74.05 IAC/InterActive IAC
IBN 0.9 20 8.42
-13.46 11.26 7.48 ICICI Bank
IDXX ... 63 185.56
18.66 207.14 146.09 IdexxLab
INFO ... 33 48.07
6.47 50.00 41.43 IHSMarkit
ING 6.4 12 16.80
-8.99 20.58 14.55 ING Groep
IVZ 3.8 11 30.70
-15.98 38.43 30.02 Invesco
3.89 264.11 116.82 IPG Photonics IPGP ... 35 222.47
IQV ... 16 94.85
-3.12 110.67 78.09 IQVIA
IRCP 5.5 12 45.00
-20.35 64.68 42.48 IRSA Prop
13.30 62.79 47.06 IcahnEnterprises IEP 11.7 4 60.05
ICLR ... 22 111.38
-0.69 124.65 76.45 Icon
IEX 1.1 32 138.77
5.15 150.72 91.60 IDEX
-8.54 179.07 130.17 IllinoisToolWks ITW 2.0 31 152.60
ILMN ... 46 228.17
4.43 256.64 167.98 Illumina
IMO 1.9 62 27.92
-10.48 32.81 25.91 ImperialOil
t -32.40 142.45 63.43 Incyte
INCY ... dd 64.02
INFY 2.3 16 17.49
7.83 18.71 13.88 Infosys
2.2 16 83.19
-6.73 97.67 81.25 Ingersoll-Rand IR
INGR 1.9 18 126.89
-9.23 146.28 113.42 Ingredion
INTC 2.5 25 48.79
5.70 53.78 33.23 Intel
16.72 74.11 33.01 InteractiveBrkrs IBKR 0.6 64 69.11
ICE 1.4 17 70.62
0.09 76.30 57.91 ICE
-5.27 69.23 49.03 InterContinentl IHG 2.4 20 60.16
IBM 4.0 25 150.57
-1.86 172.93 139.13 IBM
IFF 2.0 36 135.33
-11.32 157.40 128.42 IntlFlavors
IP
3.6 10 52.17
-9.96 66.94 49.60 IntlPaper
IPG 3.6 16 23.15
14.83 26.01 18.30 Interpublic
INTU 0.9 46 167.68
6.27 179.30 115.62 Intuit
8.66 452.00 251.13 IntuitiveSurgical ISRG ... 70 396.55
-4.16 24.30 20.25 InvitatHomes INVH 1.9 dd 22.59
IQ
... ... 16.02
... 18.52 15.30 iQIYI
IRM 7.0 49 33.53
-11.13 41.53 30.78 IronMountain
... 4 4.20
3.96 4.95 3.85 IsraelChemicals ICL
ITUB 0.4 14 15.18
16.77 16.98 10.02 ItauUnibanco
-0.24
-1.34
0.04
-1.17
-0.98
-1.23
-2.47
-0.41
-5.48
-0.37
0.04
-0.32
-0.87
-0.26
-1.40
-0.12
-0.36
-1.41
0.07
-2.60
-1.07
0.03
-5.84
-0.93
-1.12
-7.10
-0.18
-0.26
-3.09
0.17
...
0.17
0.63
-0.34
-2.00
0.04
-1.91
-0.70
-0.77
-0.57
-0.68
-0.34
-0.42
-3.29
-1.08
-0.97
-1.70
-2.02
-1.98
-1.04
-0.89
-0.85
-1.45
-0.50
-1.40
-1.53
-0.23
-1.02
-4.68
-0.65
-3.66
-0.18
-1.21
-0.19
-2.37
-0.72
-2.61
-3.56
-3.87
-0.51
-4.68
-1.00
-2.25
-3.13
-0.13
-5.32
-0.64
-0.15
-1.08
-6.52
-2.15
-0.66
-0.79
-0.77
-3.86
-6.12
-8.20
-0.58
-19.05
-0.38
-2.68
-1.68
-1.59
-1.59
-1.91
-0.64
-3.46
-2.95
-1.26
-0.14
-4.15
-9.57
-0.05
-0.02
-0.24
-0.03
-0.11
GHI
JKL
JD
-5.29 50.68 31.57 JD.com
... dd 39.23
2.01 119.33 81.64 JPMorganChase JPM 2.1 17 109.09
JKHY 1.3 27 118.38
1.21 127.31 91.50 JackHenry
JEC 1.0 30 58.01
-12.05 72.18 49.31 JacobsEngg
JHX 1.2 30 17.22
-2.21 18.79 13.55 JamesHardie
-17.25 41.64 30.24 JanusHenderson JHG 4.0 10 31.66
JAZZ ... 19 149.91
11.33 163.75 128.58 JazzPharma
JBLU ... 6 19.95
-10.70 24.13 18.05 JetBlue
JNJ 2.6328 128.10
-8.32 148.32 120.95 J&J
t -11.73 44.37 33.43 JohnsonControls JCI 3.1 21 33.64
JLL 0.4 31 171.34
15.05 178.75 103.58 JonesLang
-15.47 30.96 23.68 JuniperNetworks JNPR 3.0 31 24.09
KAR 2.6 20 53.60
6.12 56.75 40.27 KAR Auction
KB
... 7 54.44
-6.96 63.96 41.10 KB Fin
KKR 3.4 10 20.01
-4.99 24.50 16.77 KKR
KLAC 2.3 25 104.07
-0.95 123.96 87.93 KLA Tencor
KT
... 16 13.88
-11.08 18.82 12.70 KT
3.10 114.85 86.14 KSCitySouthern KSU 1.3 12 108.48
K
3.4 18 64.24
-5.50 74.28 58.76 Kellogg
KEY 2.2 17 19.09
-5.35 22.40 16.28 KeyCorp
21.56 55.21 35.05 KeysightTechs KEYS ...108 50.57
KRC 2.4 46 69.49
-6.91 77.70 62.91 KilroyRealty
-10.00 134.29 104.58 KimberlyClark KMB 3.7 17 108.60
KIM 7.8 29 14.33
-21.05 23.03 13.69 KimcoRealty
-16.05 21.85 14.69 KinderMorgan KMI 3.31517 15.17
KNX 0.6 16 43.61
-0.25 51.94 27.61 Knight-Swift
KSS 3.8 12 64.00
18.02 69.48 35.16 Kohl's
1.46 42.35 31.40 KoninklijkePhil PHG 2.6 19 38.35
KEP ... 19 16.02
-9.54 20.38 14.12 KoreaElcPwr
KHC 4.1 7 60.54
-22.15 93.88 59.48 KraftHeinz
KR 2.1 11 23.77
-13.41 31.45 19.69 Kroger
KYO ... 18 54.98
-16.07 71.92 53.79 Kyocera
12.45 17.39 10.53 LATAMAirlines LTM 0.4 58 15.63
LB 6.3 11 38.20
-36.57 63.10 35.00 L Brands
t -17.66 17.05 11.28 LG Display
LPL ... 5 11.33
LN
...136 39.75
-3.03 47.81 32.69 LINE
LKQ ... 22 38.18
-6.12 43.86 27.85 LKQ
LLL 1.5 24 207.78
5.02 218.71 159.43 L3 Tech
LH
... 13 161.65
1.34 181.72 134.19 LabCpAm
3.57 234.88 124.91 LamResearch LRCX 1.0 21 190.65
LAMR 5.7 20 63.90
-13.93 79.17 61.36 LamarAdv
9.44 62.84 40.75 LambWeston LW 1.2 29 61.78
-0.39 79.84 55.18 LasVegasSands LVS 4.3 20 69.22
LAZ 13.1 28 52.30
-0.38 60.00 40.50 Lazard
LEA 1.5 10 189.21
7.10 202.42 132.01 Lear
-7.96 54.97 41.25 Leggett&Platt LEG 3.3 21 43.93
LDOS 2.0 27 64.86
0.45 70.11 49.91 Leidos
LEN 0.3 18 61.58
-2.62 72.17 48.50 Lennar A
LEN.B 0.3 15 49.74
-3.75 58.65 40.49 Lennar B
LII 1.0 28 199.90
-4.01 223.05 160.18 LennoxIntl
t -17.82 28.30 21.61 LeucadiaNatl
LUK 1.8 50 21.77
-3.14 104.35 80.39 LibertyBroadbandA LBRDA ... 7 82.38
-3.22 104.66 80.41 LibertyBroadbandC LBRDK ... 7 82.42
-10.31 37.86 27.36 LibertyGlobal C LBTYK ... dd 30.35
-12.50 39.73 28.17 LibertyGlobal A LBTYA ... dd 31.36
QRTEA ... 6 24.94
2.13 29.11 20.56 LibertyQVC A
-12.88 41.14 28.37 LibertyFormOne C FWONK ... 32 29.76
-13.23 39.37 27.22 LibertyFormOne A FWONA ... 30 28.39
2.49 26.52 21.35 LibertyBraves A BATRA ...377 22.60
2.48 26.20 21.53 LibertyBraves C BATRK ...380 22.77
3.43 46.43 36.33 LibertySirius A LSXMA ... 12 41.02
2.98 46.24 36.11 LibertySirius C LSXMK ... 12 40.84
-8.86 45.40 37.77 LibertyProperty LPT 4.1 22 39.20
LLY 2.9 dd 76.85
-9.01 89.09 73.69 EliLilly
-3.84 101.34 81.85 LincolnElectric LECO 1.8 24 88.06
-10.03 86.68 62.67 LincolnNational LNC 1.9 7 69.16
-11.32 49.11 30.50 LiveNationEnt LYV ... dd 37.75
1.07 4.21 3.15 LloydsBanking LYG 6.0 17 3.79
4.24 363.00 266.01 LockheedMartin LMT 2.4 49 334.66
L
-1.30 53.59 45.01 Loews
0.5 14 49.38
LOGI 1.8 30 35.88
6.66 43.54 30.64 LogitechIntl
LOGM 1.1 64 113.90
-0.52 134.80 98.95 LogMeIn
LOW 1.9 22 88.24
-5.06 108.98 70.76 Lowe's
LULU ... 47 89.61
14.02 91.44 47.26 lululemon
-8.64 121.95 78.01 LyondellBasell LYB 4.0 8 100.79
MN
MTB
6.26 197.37 141.12 M&T Bank
2.22 38.41 27.01 MGM Resorts MGM
MKSI
16.83 128.28 64.75 MKS Instrum
MPLX
-8.91 39.38 30.88 MPLX
MSCI
13.84 159.98 95.01 MSCI
MAC
-12.68 69.73 52.12 Macerich
M
18.30 31.04 17.41 Macy's
16.25 254.50 189.96 MadisonSquGarden MSG
MMP
-14.97 78.00 54.82 MagellanMid
MGA
3.37 59.99 39.50 MagnaIntl
MAN
-12.16 136.93 97.15 Manpower
MFC
-12.70 22.16 16.62 ManulifeFin
MRO
-4.08 19.52 10.55 MarathonOil
9.81 74.92 47.78 MarathonPetrol MPC
MKL
0.79 1194.98 936.95 Markel
52-Wk %
Sym Hi/Lo Chg Stock
NII Holdings
NIHD
NatlEnerSvs
NESR
NewYork
NWY
NewaterTech
NEWA
NexeoSolutions NXEO
NexeoSolutionsWt NXEOW
NextEraEnergyUn NEEpQ
NuSkinEnts
NUS
OpesAcquisition OPES
PJT Partners
PJT
PRGXGlobal
PRGX
PalatinTech
PTN
PerryEllis
PERY
PhibroAnimal
PAHC
PriceSmart
PSMT
QuorumHealth QHC
RBB Bancorp
RBB
RayonierAdvMatls RYAM
RockyBrands
RCKY
Senseonics
SENS
Statoil
STO
TailoredBrands TLRD
TechTarget
TTGT
TelecomItalia A TI.A
-0.96
-2.79
-2.01
-1.86
-0.28
-0.54
-2.70
-0.69
-2.61
-0.96
-2.84
-0.26
-1.30
-1.33
-0.32
-4.64
-0.08
-3.74
-0.32
-0.65
-1.48
-0.79
-0.81
-0.33
-0.33
-1.57
-2.91
-0.24
-0.23
-0.77
-0.04
-1.73
0.02
-0.53
-0.27
0.10
-0.55
-5.29
-3.41
-4.37
-0.54
0.31
-1.89
-0.88
-4.15
-1.06
-1.62
-2.42
-2.06
-5.23
-0.71
-1.18
-1.29
-0.90
-0.87
-0.63
-0.43
-0.52
-0.43
-0.46
-0.16
-0.17
-0.29
-1.77
-3.06
-2.18
-1.22
0.01
-11.99
-1.13
-0.33
-0.25
-0.51
-1.66
-4.06
2.61
10.03
4.03
25.00
11.00
0.89
73.03
75.82
9.88
54.01
9.90
1.30
28.00
41.65
93.55
9.95
28.00
22.23
22.80
3.75
24.55
28.79
20.49
9.24
6.6
...
2.6
-0.9
0.2
3.0
1.1
-2.6
1.9
-1.3
-0.5
2.5
-0.6
2.5
5.5
0.5
0.4
-1.6
1.3
5.7
-0.7
0.3
-3.1
6.3
1.7
1.4
0.7
7.5
1.1
5.2
5.1
...
6.1
2.3
1.7
3.9
1.2
2.5
...
21 181.69
10 34.13
18 110.40
22 32.31
43 144.05
79 57.35
6 29.80
77 245.12
16 60.32
10 58.58
14 110.78
25 18.21
dd 16.24
11 72.45
45 1148.16
-4.87
-1.44
-3.10
-0.73
-2.46
-1.05
-1.13
0.34
-0.02
-0.53
-4.98
-0.40
-0.56
-0.96
-13.07
52-Wk %
Sym Hi/Lo Chg Stock
YTD 52-Week
% Chg Hi Lo Stock
Yld
Net
Sym % PE Last Chg
MKTX
2.44 229.84 171.45 MarketAxess
MAR
-3.54 149.21 90.00 Marriott
-0.82 86.54 71.79 Marsh&McLen MMC
-8.51 244.32 191.09 MartinMarietta MLM
MRVL
-4.47 25.18 14.58 MarvellTech
MAS
-8.53 46.45 33.05 Masco
MA
12.12 183.73 111.01 Mastercard
MTCH
34.49 47.10 16.54 MatchGroup
8.66 74.94 43.35 MaximIntProducts MXIM
MKC
2.25 111.46 90.25 McCormick
4.12 112.92 90.60 McCormickVtg MKC.V
MCD
-6.32 178.70 129.52 McDonalds
MCK
-10.41 178.86 133.82 McKesson
MDT
-3.85 89.72 76.41 Medtronic
-2.31 30.49 19.29 MelcoResorts MLCO
8.86 417.91 214.00 MercadoLibre MELI
MRK
-5.17 66.41 52.83 Merck
MET
-10.46 55.91 43.38 MetLife
-10.37 697.26 472.44 MettlerToledo MTD
KORS
3.03 69.95 32.38 MichaelKors
MFGP
-53.41 36.21 12.67 MicroFocus
-1.83 101.48 71.40 MicrochipTech MCHP
MU
17.85 63.42 26.36 MicronTech
MSCC
23.29 67.52 46.09 Microsemi
MSFT
5.48 97.24 64.85 Microsoft
MAA
-8.53 110.95 85.16 MidAmApt
MIDD
-8.43 142.00 107.53 Middleby
-11.28 8.11 5.94 MitsubishiUFJ MUFG
MFG
-2.47 4.00 3.37 MizuhoFin
7.95 12.80 7.76 MobileTeleSys MBT
MHK
-14.43 286.85 223.99 MohawkInds
-7.13 96.00 78.00 MolsonCoors A TAP.A
-10.86 97.50 72.07 MolsonCoors B TAP
MOMO
48.69 46.69 22.49 Momo
MDLZ
-3.08 47.23 39.19 Mondelez
MON
0.92 124.20 114.19 Monsanto
MNST
-11.63 70.22 44.35 MonsterBev
MCO
7.71 171.68 111.94 Moody's
1.09 59.38 40.43 MorganStanley MS
MOS
-5.61 29.20 19.23 Mosaic
MSI
15.10 110.29 79.63 MotorolaSol
MULE
89.21 44.58 19.40 MuleSoft
MYL
-6.59 47.82 29.39 Mylan
NRG
5.20 31.14 14.52 NRG Energy
DCM
9.80 26.32 22.58 NTTDoCoMo
NVR
-11.01 3700.00 2028.99 NVR
NXPI
-2.87 125.93 103.16 NXP Semi
NDAQ
10.89 87.00 65.98 Nasdaq
NGG
-1.28 75.24 51.44 NationalGrid
15.16 53.57 31.78 NatlInstruments NATI
NOV
2.69 39.44 29.90 NatlOilwell
-8.74 45.63 36.25 NatlRetailProp NNN
57.18 111.36 17.33 NektarTherap NKTR
NTAP
14.08 65.58 37.43 NetApp
NTES
-20.96 377.64 253.20 Netease
NFLX
50.47 333.98 138.66 Netflix
NBIX
-0.95 92.98 39.50 Neurocrine
-5.62 108.40 58.47 NewOrientalEduc EDU
-3.53 14.53 11.67 NY CmntyBcp NYCB
-16.54 55.08 23.85 NewellBrands NWL
4.72 42.04 31.42 NewmontMin NEM
NWS
-4.82 17.70 12.60 NewsCorp B
NWSA
-4.38 17.29 12.19 NewsCorp A
4.20 164.71 128.31 NextEraEnergy NEE
NKE
7.99 70.25 50.35 Nike
NI
-5.53 27.76 22.44 NiSource
NBL
0.41 35.74 22.98 NobleEnergy
NOK
15.67 6.65 4.51 Nokia
-1.20 6.83 5.28 NomuraHoldings NMR
NDSN
-10.26 151.84 107.16 Nordson
JWN
1.37 54.00 37.79 Nordstrom
-10.72 157.15 111.07 NorfolkSouthern NSC
1.28 110.81 84.93 NorthernTrust NTRS
14.60 360.88 237.39 NorthropGrum NOC
-0.08 61.18 51.30 NorwegCruise NCLH
NVS
-4.48 94.19 72.67 Novartis
NVO
-9.50 58.37 35.10 NovoNordisk
NUE
-4.55 70.48 51.67 Nucor
NTNX
41.27 55.25 14.38 Nutanix
NTR
... 56.18 40.41 Nutrien
NVDA
10.72 254.50 95.49 NVIDIA
Lows
4.1 10 32.37
5.4 43 56.69
... 19 237.19
4.6 39 67.53
0.4 25 140.84
3.7 11 21.31
3.3 15 71.74
... 13 23.42
1.5 48 34.16
1.7 55 44.83
3.4 24 17.14
1.0 25 132.67
... 8 86.19
1.3 18 76.02
1.0 32 80.89
... 14 43.97
3.8 23 28.47
2.0 14 147.95
... ... 74.61
1.6 17 109.39
5.9 17 27.93
...308 76.94
0.1 23 156.73
1.5 14 66.26
2.3 16 110.14
4.2 16 47.71
... ... 35.71
... dd 193.84
1.6 26 167.44
... 60 26.95
3.3 24 60.72
... 95 107.18
... 50 73.86
3.2 16 10.36
5.5 22 30.53
2.1 26 68.08
3.8 19 18.39
2.9 32 109.30
0.4 68 73.20
0.9 98 81.99
1.2 36 67.85
... dd 13.92
... dd 12.63
3.9 10 35.17
4.2 26 101.02
2.9 10 96.97
... 9 23.72
2.4 12 54.49
3.5 18 79.75
0.2 35 168.13
5.2 24 22.98
5.2 dd 23.23
2.0 44 119.28
1.0 32 146.12
2.3 33 143.18
3.4 8 59.61
3.5 21 78.43
1.9 22 60.04
3.1 20 61.24
... dd 117.19
3.5 6 102.33
3.6 21 49.71
3.6 16 50.10
4.0 30 199.28
1.2 21 30.03
...201 31.23
...349 69.72
4.3 dd 53.12
2.1 18 97.35
-0.48
-0.75
-6.68
-0.24
-4.20
-0.32
-0.76
-0.80
-0.20
-1.13
-0.04
-0.24
-1.81
-3.03
-0.65
-0.06
-0.18
-4.81
-2.19
-2.28
-0.07
-1.80
-2.78
-2.08
-3.02
-1.52
-1.84
-2.56
-4.74
-0.81
-1.42
-1.42
-3.09
0.06
-0.31
-2.37
-0.42
-1.27
-2.70
-1.73
-1.65
-0.06
-0.01
-0.56
-0.68
-0.80
0.24
0.41
-0.55
-4.30
-0.18
-0.02
0.68
-1.51
-3.53
-1.70
-0.37
-1.21
-0.52
-1.91
-2.58
-0.54
-0.63
-2.08
-0.78
-0.78
-1.69
-1.92
-2.48
17.54 41.75 16.75 TAL Education TAL
12.60 63.01 36.12 TD Ameritrade AMTD
0.92 108.23 71.93 TE Connectivity TEL
TU
-7.02 38.50 32.56 Telus
TX
8.42 39.48 22.78 Ternium
TSU
11.29 22.73 13.63 TIM Part
TJX
9.13 85.21 66.44 TJX
TMUS
-6.08 68.88 54.60 T-MobileUS
TROW
-0.52 120.07 67.62 TRowePrice
13.28 87.60 50.29 TableauSftwr DATA
TSM
6.99 46.57 31.49 TaiwanSemi
-13.80 129.25 57.36 TakeTwoSoftware TTWO
TPR
18.63 54.26 38.47 Tapestry
-7.17 60.06 39.59 TargaResources TRGP
TGT
10.79 78.70 48.56 Target
TTM
-17.33 37.62 24.85 TataMotors
FTI
-7.86 35.00 24.53 TechnipFMC
TECK
0.08 30.80 14.56 TeckRscsB
-15.48 40.19 21.92 TelecomArgentina TEO
22.25 10.83 7.57 TelecomItalia TI
s 26.63 9.24 6.27 TelecomItalia A TI.A
2.44 201.40 121.58 TeledyneTech TDY
TFX
-0.86 288.78 191.40 Teleflex
1.62 17.33 13.06 TelefonicaBras VIV
TEF
2.07 11.64 8.99 Telefonica
-17.66 36.19 25.96 TelekmIndonesia TLK
TS
9.23 37.56 25.91 Tenaris
TER
1.93 50.68 29.68 Teradyne
TSLA
-3.87 389.61 244.59 Tesla
TEVA
-10.92 33.82 10.85 TevaPharm
-4.77 120.75 75.92 TexasInstruments TXN
TXT
2.26 62.19 45.00 Textron
8.26 226.44 151.74 ThermoFisherSci TMO
-8.99 48.61 38.22 ThomsonReuters TRI
-25.05 161.48 87.96 ThorIndustries THO
MMM
-9.82 259.77 188.62 3M
TIF
-8.05 111.44 84.15 Tiffany
4.43 103.90 85.88 TimeWarner
TWX
TOL
-10.06 52.73 35.07 Toll Bros
TMK
-8.52 93.59 73.99 Torchmark
TTC
-7.24 73.86 58.39 Toro
-4.63 61.06 45.18 TorontoDomBk TD
s 7.47 59.95 48.15 Total
TOT
TSS
6.18 90.74 51.88 TotalSystem
TM
-1.42 140.99 103.62 ToyotaMotor
-20.13 82.68 49.87 TractorSupply TSCO
TRP
-14.74 51.85 39.16 TransCanada
TDG
11.56 321.38 224.29 TransDigm
TRU
2.22 61.42 37.84 TransUnion
TRV
1.19 150.55 113.76 Travelers
TRMB
-15.48 45.70 30.45 Trimble
TRIP
16.51 50.95 29.50 TripAdvisor
-10.78 11.29 7.79 TurkcellIletism TKC
TRQ
-14.29 3.59 2.44 TurquoiseHill
3.36 39.13 24.81 21stCenturyFoxA FOXA
3.58 38.56 24.30 21stCenturyFoxB FOX
TWTR
17.03 36.80 14.12 Twitter
TYL
16.72 214.33 152.76 TylerTech
TSN
-13.52 84.65 57.20 TysonFoods
UBS
-7.07 20.89 15.10 UBS Group
UDR
-7.29 40.71 32.88 UDR
UGI
-5.75 52.00 42.51 UGI
USFD
3.95 35.10 25.43 US Foods
ULTA
-6.89 314.86 187.96 UltaBeauty
ULTI
9.56 257.93 181.59 UltSoftware
UGP
-10.12 26.48 20.23 UltraparPart
17.67 23.46 11.40 UnderArmour A UAA
10.74 21.80 10.36 UnderArmour C UA
UN
1.74 61.62 50.11 Unilever
UL
1.90 60.13 49.74 Unilever
UNP
-2.85 143.05 101.06 UnionPacific
1.82 83.04 56.51 UnitedContinental UAL
UMC
7.11 2.73 1.89 UnitedMicro
UPS
-11.60 135.53 101.45 UPS B
0.13 190.74 100.62 UnitedRentals URI
USB
-6.16 58.50 49.03 US Bancorp
X
-1.99 47.64 18.55 US Steel
UTX
-3.77 139.24 109.10 UnitedTech
UNH
1.59 250.79 164.60 UnitedHealth
4.54 128.15 95.26 UniversalHealthB UHS
UNM
-15.12 58.73 43.55 UnumGroup
VER
-12.07 8.94 6.62 VEREIT
VFC
3.12 84.38 51.22 VF
VICI
-10.83 22.99 17.86 VICI Prop
V
3.23 126.88 88.13 Visa
MTN
5.37 237.77 186.44 VailResorts
VALE
3.52 14.67 7.47 Vale
VLO
3.56 99.95 60.69 ValeroEnergy
VAR
5.84 130.29 87.49 VarianMed
VEDL
-16.66 21.99 13.78 Vedanta
28.29 78.28 50.09 VeevaSystems VEEV
VTR
-15.98 72.36 47.80 Ventas
VRSN
2.84 127.24 87.02 VeriSign
8.47 106.07 75.60 VeriskAnalytics VRSK
VZ
-10.30 54.77 42.80 Verizon
VRTX
2.93 178.25 111.32 VertxPharm
VIA
1.72 47.75 28.20 Viacom A
VIAB
0.29 45.59 22.13 Viacom B
VIPS
42.49 19.14 7.79 Vipshop
s 95.08 36.60 13.10 VirtuFinancial VIRT
7.42 21.43 14.50 VistraEnergy
VST
VMW
-5.32 165.00 85.45 VMware
VOD
-9.66 32.75 25.54 Vodafone
-14.63 83.52 64.13 VornadoRealty VNO
0.10 54.87 33.53 VoyaFinancial VOYA
VMC
-11.54 141.20 109.96 VulcanMatls
3.7 26 21.18
3.6 27 21.49
2.7 18 47.10
... 28 41.47
1.8 dd 111.77
2.5 27 79.73
1.2 21 84.82
1.6 31 215.91
5.1 47 52.08
...107 149.17
3.8 83 58.70
... 31 319.61
2.0 18 18.23
1.3 5 149.42
2.4 10 83.03
2.1 18 66.85
1.5 47 93.62
3.2 35 55.96
7.1 10 50.55
2.0 25 57.15
2.0 59 168.96
1.0 25 133.90
3.4 18 45.74
1.1 61 50.24
0.6 29 267.84
1.2 22 77.45
3.9 13 76.27
... 47 7.41
2.1 15 114.83
5.7 21 65.80
5.6 21 67.26
... 18 122.26
1.3 27 105.36
1.1 32 187.32
...197 169.73
0.8 29 72.78
... 46 96.68
7.6 7 62.31
... 7 24.07
3.4107 94.52
0.6 31 48.32
... 26 236.06
... dd 141.32
...683 116.10
4.6 24 40.15
1.3 5 15.83
2.4 16 34.64
3.1 dd 64.36
0.8 31 50.11
4.5 26 56.62
1.5 52 42.37
... dd 50.07
... 33 6.28
3.2111 111.13
1.8 13 37.70
... 13 50.82
... dd 162.94
0.02
-0.05
-1.62
-2.11
-2.62
0.82
-3.55
-3.48
-0.29
-1.90
-0.97
-8.98
-0.61
-3.04
-3.54
-1.27
-1.59
-0.63
-0.97
-2.08
-5.97
-1.41
-0.53
-1.05
-7.30
-2.32
-0.85
-0.05
-2.99
-0.33
-0.52
-1.19
-0.08
-2.42
-1.96
-1.85
-2.63
0.31
-0.15
-1.48
0.15
-6.22
-6.08
-2.94
-0.07
-0.54
0.48
-1.41
-2.24
-1.63
-1.01
-1.80
-0.33
-0.40
-0.45
-0.79
-2.83
WBC
-10.02 162.20 111.68 WABCO
WEC
-5.10 70.09 58.92 WEC Energy
WEX
8.53 163.25 97.26 WEX
WPC
-9.55 72.41 59.23 W.P.Carey
WPP
-10.40 113.51 76.68 WPP
WAB
-1.56 93.81 69.20 Wabtec
-12.60 87.79 61.73 WalgreensBoots WBA
WMT
-12.21 109.98 71.80 Walmart
2.00 74.59 58.33 WasteConnections WCN
WM
-2.42 89.73 70.08 WasteMgt
WAT
0.87 220.20 154.36 Waters
s 9.32 189.72 134.08 Watsco
WSO
W
-16.98 100.14 41.59 Wayfair
WB
9.80 142.12 48.82 Weibo
-5.03 221.75 142.53 WellCareHealth WCG
WFC
-13.91 66.31 49.27 WellsFargo
WELL
-13.74 78.17 51.63 Welltower
-15.56 103.36 77.97 WestPharmSvcs WST
-2.88 57.32 47.06 WestarEnergy WR
-1.13 62.49 44.64 WestAllianceBcp WAL
10.36 106.96 76.59 WesternDigital WDC
-12.38 46.83 31.83 WesternGasEquity WGP
-11.69 61.78 40.44 WesternGasPtrs WES
-1.89 22.21 18.38 WesternUnion WU
0.62 121.30 59.58 WestlakeChem WLK
-9.02 26.72 21.73 WestpacBanking WBK
WRK
-0.89 71.55 49.23 WestRock
0.62 37.89 30.95 Weyerhaeuser WY
-6.91 22.72 18.32 WheatonPrecMet WPM
WHR
-11.93 202.99 145.59 Whirlpool
t -20.04 33.67 24.00 Williams
WMB
-13.43 44.06 32.74 WilliamsPartners WPZ
WLTW
-3.01 165.00 125.66 WillisTowers
WIT
-5.30 6.40 4.75 Wipro
WF
-13.90 53.50 35.93 WooriBank
WDAY
20.48 140.00 80.76 Workday
WP
8.55 85.53 59.10 Worldpay
WYN
-4.82 127.96 83.80 Wyndham
5.87 203.63 112.91 WynnResorts WYNN
5.07 106.20 44.85 XPO Logistics XPO
XEL
-5.49 52.22 41.51 XcelEnergy
XRX
-4.01 37.42 26.64 Xerox
XLNX
-1.66 78.02 54.99 Xilinx
XYL
10.56 79.83 48.81 Xylem
YPF
-7.77 26.70 18.41 YPF
YY
-13.21 142.97 42.90 YY
YNDX
20.27 44.49 21.40 Yandex
YUM
3.49 86.93 63.54 YumBrands
YUMC
-3.67 48.75 30.67 YumChina
ZTO
-5.99 18.08 11.92 ZTO Express
ZAYO
-1.41 37.95 29.73 ZayoGroup
ZBRA
30.48 148.71 86.82 ZebraTech
ZG
29.23 59.73 33.62 Zillow A
Z
28.74 59.99 33.77 Zillow C
t -12.84 133.49 104.28 ZimmerBiomet ZBH
1.20 57.29 38.43 ZionsBancorp ZION
ZTS
12.40 85.73 52.36 Zoetis
5.0 23 19.15
0.9 21 385.71
... 4 41.94
... 11 156.74
... dd 117.42
... 19 136.02
5.1 25 154.10
0.7 48 6.26
... 35 40.26
1.3 22 95.56
1.1 37 63.17
2.4 21 37.45
2.5 11 123.94
... dd 14.25
2.2 15 145.96
1.7 31 51.37
... 13 48.44
5.2 53 44.79
2.2 58 54.72
0.9 10 55.29
9.0 42 32.90
1.7 15 97.86
0.5 27 80.57
... dd 97.46
... ... 147.92
... 3 5.15
... dd 45.87
1.7 19 149.67
2.1 19 58.34
1.7 19 97.49
3.6 18 24.27
1.7 13 43.48
1.1 23 20.98
1.2 58 155.17
... 8 8.28
3.1107 91.12
3.6 15 40.33
3.2 17 36.11
2.4 15 65.98
1.2 17 26.00
1.8 14 33.81
...301 81.39
2.0 23 48.97
2.4 27 59.72
-0.28
-11.11
-0.33
0.31
-2.72
-4.13
-1.45
-0.05
-0.76
-3.24
-1.81
-0.07
-0.06
-0.14
-3.65
-0.29
-0.71
-0.22
-1.37
-1.57
-0.50
-1.44
-3.42
-1.99
3.93
-0.02
-2.15
-4.62
-0.80
-3.08
-0.18
-2.06
-0.34
-4.90
-0.12
-0.13
-0.64
-0.05
-2.56
-0.15
-0.99
-1.57
-1.57
-0.59
...124 34.92
1.5 33 57.57
1.7 28 95.91
4.6 19 35.21
3.2 8 34.25
... 27 21.49
1.9 21 83.44
... 11 59.65
2.7 17 104.38
... dd 78.39
2.7 19 42.42
... 58 94.63
2.6 47 52.47
8.1 dd 44.95
3.4 14 72.29
0.1 11 27.34
1.8 45 28.85
0.6 8 26.19
2.5 13 30.96
2.5 ... 10.55
3.4 ... 9.13
... 30 185.57
0.6 76 246.68
... 17 15.07
4.8 14 9.88
2.8 16 26.53
1.5 40 34.80
0.8 34 42.68
... dd 299.30
2.0 dd 16.88
2.5 28 99.46
0.1 51 57.87
0.3 37 205.56
3.5 20 39.67
1.3 14 112.97
2.6 27 212.25
2.1 32 95.58
1.7 14 95.52
1.0 12 43.19
0.8 7 82.98
1.3 27 60.51
3.8 13 55.87
5.1 17 59.41
0.6 27 83.98
... 9 125.37
1.8 18 59.70
5.3 16 41.47
... 25 306.36
... 24 56.18
2.1 19 137.25
... 73 34.35
... dd 40.15
1.4 15 9.10
... 33 2.94
1.0 17 35.69
1.0 17 35.34
... dd 28.10
... 50 206.66
1.7 9 70.11
4.0 59 17.09
3.6129 35.71
2.3 14 44.25
... 17 33.19
... 23 208.26
...498 239.09
2.7 23 20.43
... dd 16.98
... dd 14.75
... 23 57.30
3.2 23 56.39
2.2 10 130.28
... 10 68.63
3.2 21 2.56
3.5 19 105.33
... 11 172.14
2.4 14 50.28
0.6 16 34.49
2.3 22 122.76
1.3 21 223.96
0.3 15 118.50
2.0 11 46.59
8.0 dd 6.85
2.4 47 76.31
... 96 18.28
0.7 40 117.70
2.6 28 223.87
... 12 12.66
3.4 10 95.18
... 95 117.64
... 13 17.36
... 76 70.92
6.3 28 50.42
... 32 117.69
... 32 104.13
5.0 6 47.48
...148 154.25
2.3 7 35.50
2.6 6 30.90
... 35 16.70
2.7162 35.70
... dd 19.68
... 88 118.65
4.2 dd 28.82
3.8 80 66.74
0.1 dd 49.52
1.0 25 113.56
-0.35
-1.59
-2.88
-0.22
-0.37
-0.29
-1.52
-0.16
-3.15
-1.98
-0.90
-4.00
-1.53
-0.27
-0.15
-0.28
-0.99
-0.42
0.44
0.61
0.54
-4.89
-5.38
-0.23
-0.06
-0.24
-0.80
-1.19
-6.42
-0.34
-2.78
-1.71
-6.30
-0.20
-2.23
-6.42
-2.54
-0.87
-1.43
-1.98
-1.66
-0.78
-0.29
-2.88
-2.03
-1.66
-0.52
-4.58
-0.89
-2.04
-1.39
-1.22
-0.28
-0.08
-0.67
-0.66
-0.54
-2.14
-0.86
-0.22
...
-0.36
-0.31
1.34
-4.58
-0.30
-0.49
-0.44
-0.15
-0.07
-2.82
-2.06
-0.02
-1.85
-5.80
-0.80
-2.12
-3.00
-5.11
-3.17
-1.36
-0.09
-1.18
0.10
-3.49
-5.04
-0.29
-0.68
-2.83
-0.63
-1.90
0.38
-1.53
-1.32
-0.76
-3.41
0.20
0.13
0.26
-0.45
-0.54
-3.16
0.04
-1.03
-1.20
-3.43
... 17 129.12
3.5 17 63.04
... 41 153.27
6.5 37 62.32
6.3 9 81.14
0.6 29 80.16
2.5 16 63.47
2.4 27 86.69
0.8 33 72.36
2.2 19 84.21
...1026 194.88
3.1 33 185.88
... dd 66.64
... 72 113.60
... 23 191.00
3.0 13 52.23
6.3168 55.01
0.7 42 83.32
3.1 23 51.28
... 18 55.98
2.3 73 87.77
6.7 19 32.56
8.7 29 42.47
4.1 dd 18.65
0.8 11 107.19
6.5 13 22.18
2.7 9 62.65
3.6 46 35.48
1.7158 20.60
3.0 33 148.52
5.6 9 24.38
7.1 36 33.57
1.6 35 146.15
0.6 22 5.18
3.3 7 38.48
... dd 122.58
...101 79.84
2.4 13 110.28
1.1 25 178.49
... 40 96.23
3.3 20 45.47
3.6 47 27.98
2.1 35 66.30
1.1 41 75.40
0.9 12 21.13
... 16 98.12
... ... 39.39
1.7 22 84.46
1.0 38 38.55
... 29 14.90
...107 36.28
...435 135.44
... dd 52.65
... dd 52.68
0.9 12 105.18
1.6 20 51.44
0.6 46 80.97
-3.84
-0.33
-5.76
-0.10
1.48
-1.30
-1.18
-1.12
-0.39
-1.81
-6.82
-3.37
-1.48
-2.53
-5.29
-1.03
0.28
-1.70
-0.73
-2.00
-2.76
-0.53
-0.53
-0.43
-3.44
-0.19
-1.80
-0.26
0.17
-4.09
-0.42
-0.65
-2.35
-0.05
-0.97
-3.42
-1.82
-3.16
-2.75
-2.41
-0.22
-0.30
-4.40
-2.20
-0.25
-4.37
-0.74
-1.55
-1.45
-0.25
-0.17
-3.74
-0.32
-0.26
-3.17
-1.45
-2.55
TUV
WXYZ
52-Wk %
Sym Hi/Lo Chg Stock
5.35 -6.8 FlexSolInt
61.74 0.4 CalitheraBiosci
CALA
1.98 -3.9 GEE Group
CLDX
59.95 -0.5 CelldexTherap
6.26 -3.9 GabelliUtilityRt
8.50 1.8 ChickenSoupEntA CSSE
13.49 -1.8 GenieEnergy
LFC
36.60 -1.2 ChinaLifeIns
25.06 -0.5 GovtPropIncoTr
189.72 -1.8 CitigrpCapXIIIPf CpN
12.90 -5.3 GrayTelevision
CLDR
31.25 2.0 Cloudera
172.81 -1.5 GrayTelevision A
Coherent
COHR
30.09 -4.8 GreentreeHospital
Colfax
CFX
5.22 -19.7 Hawkins
Collplant
CLGN
32.34 -2.7 CompassPfdA
ABMIndustries ABM
CODIpA 21.86 -0.7
HeartlandExp
25.50
... CompassPfd
AEGONNotes
AEK
CODIpB 22.75 -1.0
Hersha Pfd E
16.75 -0.6 ConatusPharm
AllianceResource ARLP
3.85 -2.2
CNAT
Huami
0.88 -2.3 Corning
Altimmune
ALT
26.31 -3.3
GLW
HudbayMineralsWt
AmShrHosp
2.34 -5.9 CrossTimbers
AMS
14.01 -0.6
CRT
Incyte
24.32 -2.8 DDR PfdJ
AnteroMidstream AM
22.69 -0.6
DDRpJ
0.36 -0.8 DDR PfdK
ApricusBiosci
APRI
22.02 -0.2 InfoSonics
DDRpK
14.14
-4.7
ArcusBiosci
RCUS
6.98 -6.3 IntegratedMedia
Dermira
DERM
3.35 -2.9 DigitalRealtyPfdC DLRpC
AstaFunding
ASFI
26.07 -0.2 InternetGold
6.35 0.6 DominionEnerUn DCUD
BRF
BRFS
45.80 -0.7 Iteris
75.81 -3.4 DominionEner
BioMarinPharm BMRN
66.10 -1.7 JohnsonControls
D
BlinkCharging
2.15 -9.6 DominionEnerMid DM
BLNK
14.65 -2.6 LG Display
0.35 -23.1 Echelon
BlinkChargingWt BLNKW
4.10 -3.8 LejuHoldings
ELON
7.10 -0.5 EthanAllen
BlueknightEnPtrsA BKEPP
22.00 -1.9 LeucadiaNatl
ETH
24.62
... Evolus
CMSEnerDeb78 CMSA
7.53 -6.5 LifewayFoods
EOLS
TexasRoadhouse TXRH
Total
TOT
TownSports
CLUB
VirtuFinancial
VIRT
Watsco
WSO
WellesleyBancorp WEBK
-16.12 23.44 18.50 ShawComm B SJR
-5.93 435.15 308.30 SherwinWilliams SHW
SHG
-9.61 50.37 40.02 ShinhanFin
SHPG
1.04 192.15 123.73 Shire
SHOP
16.26 154.82 67.45 Shopify
-0.90 161.92 116.68 SignatureBank SBNY
-10.27 176.17 147.28 SimonProperty SPG
SIRI
16.79 6.62 4.73 SiriusXM
6.40 42.73 22.64 SkechersUSA SKX
SWKS
0.64 117.65 93.05 Skyworks
AOS
3.08 68.39 49.48 SmithAO
6.97 40.43 30.98 Smith&Nephew SNN
SJM
-0.24 134.12 99.56 Smucker
SNAP
-2.46 23.57 11.28 Snap
SNA
-16.26 185.47 140.83 SnapOn
SQM
-13.47 64.20 32.38 SOQUIMICH
SNE
7.76 53.91 31.32 Sony
SO
-6.86 53.51 42.38 Southern
SCCO
15.32 56.66 32.63 SoCopper
-15.52 66.98 49.76 SouthwestAir LUV
-16.79 46.47 32.12 SpectraEnerPtrs SEP
-12.94 146.09 89.36 SpectrumBrands SPB
-7.66 105.20 51.85 SpiritAeroSys SPR
SPLK
17.65 112.66 54.17 Splunk
SPOT
... 169.00 135.51 Spotify
S
-12.56 9.22 4.81 Sprint
SQ
32.30 58.46 16.66 Square
-11.80 176.62 130.04 StanleyBlackDck SWK
SBUX
1.58 64.87 52.58 Starbucks
STT
-0.12 114.27 76.95 StateStreet
s 13.31 24.55 16.18 Statoil
STO
0.81 50.70 32.15 SteelDynamics STLD
STM
-3.94 25.30 14.07 STMicroelec
SYK
0.21 170.00 129.82 Stryker
-4.72 9.67 6.93 SumitomoMits SMFG
SUI
-1.79 96.08 80.12 SunComms
-2.25 44.50 32.22 SunLifeFinancial SLF
-1.66 38.39 27.96 SuncorEnergy SU
2.15 73.37 51.96 SunTrustBanks STI
SYMC
-7.34 34.20 24.93 Symantec
-12.43 40.59 26.01 SynchronyFin SYF
SNPS
-4.52 94.80 70.55 Synopsys
SNV
2.15 53.14 39.07 SynovusFin
SYY
-1.66 64.27 48.85 Sysco
-1.76
-3.51
-1.42
-5.83
-0.62
-0.74
-5.85
-0.66
-1.05
-0.58
-1.86
-2.70
-2.90
-2.06
-0.45
-9.42
-1.17
-0.76
-22.41
-1.16
0.40
-3.35
-1.38
-0.98
-2.15
-0.46
-1.24
-0.16
-0.05
-0.44
-3.42
...
-0.72
-0.67
-0.72
-0.19
-1.48
-3.24
-1.82
-0.97
-2.71
-0.25
-0.93
-0.35
-0.17
-63.22
-1.05
-1.11
-0.16
-1.08
-0.24
-0.16
-7.57
0.21
-5.33
-5.12
-3.06
-0.25
-0.33
-0.43
0.02
-0.20
-0.25
-1.25
-2.04
-0.18
-1.07
-0.02
-0.10
-5.13
-2.04
-4.34
-3.29
-8.31
-1.18
-0.86
-0.25
-2.41
-1.97
-1.15
-7.13
RS
RENX
-8.19 23.30 18.52 RELX
RELX
-9.32 24.03 19.73 RELX
RPM
-10.15 56.69 46.36 RPM
RSPP
1.94 47.17 28.76 RSP Permian
RL
7.79 119.33 66.06 RalphLauren
-19.38 108.29 77.70 RandgoldRscs GOLD
-5.02 99.26 71.35 RaymondJames RJF
RTN
14.94 222.82 150.72 Raytheon
-8.66 62.31 47.25 RealtyIncome O
RHT
24.20 167.36 84.16 RedHat
REG
-15.15 70.64 54.87 RegencyCtrs
REGN
-14.99 543.55 313.53 RegenPharm
RF
5.50 20.21 13.00 RegionsFin
RGA
-4.17 165.12 121.92 ReinsGrp
RS
-3.22 95.97 68.46 RelianceSteel
RSG
-1.12 69.40 60.26 RepublicSvcs
RMD
10.54 104.78 67.04 ResMed
-8.98 68.89 54.00 RestaurantBrands QSR
RIO
-4.50 59.25 37.66 RioTinto
RHI
2.90 60.59 42.92 RobertHalf
ROK
-13.95 210.72 148.31 Rockwell
-1.27 139.63 96.13 RockwellCollins COL
-10.19 54.95 43.11 RogersComm B RCI
ROL
7.97 53.00 36.13 Rollins
ROP
3.41 292.97 204.77 RoperTech
ROST
-3.49 85.66 52.85 RossStores
-6.59 87.10 66.66 RoyalBkCanada RY
-3.01 8.74 5.66 RoyalBkScotland RBS
-3.73 135.65 93.86 RoyalCaribbean RCL
RDS.A
-1.36 72.43 51.08 RoyalDutchA
RDS.B
-1.51 74.60 53.10 RoyalDutchB
RYAAY
17.34 127.61 84.75 Ryanair
SAP
-6.23 116.90 96.04 SAP
SPGI
10.58 197.76 128.26 S&P Global
SBAC
3.90 177.67 119.53 SBA Comm
1.28 78.35 49.45 SEI Investments SEIC
SINA
-3.62 124.60 63.05 Sina
SHI
9.32 64.43 50.67 SINOPEC
SKM
-13.76 28.97 23.01 SK Telecom
-6.35 109.95 89.46 SLGreenRealty SLG
19.37 53.99 34.75 SS&C Tech
SSNC
SIVB
0.98 271.79 159.44 SVB Fin
SAGE
-14.20 195.97 59.57 SageTherap
13.57 128.87 83.00 Salesforce.com CRM
SNY
-6.63 50.65 38.14 Sanofi
-14.98 19.02 11.12 SantanderCons SC
SSL
1.26 38.75 26.92 Sasol
-4.50 80.89 61.02 Schlumberger SLB
SCHW
-2.45 58.11 37.16 SchwabC
STX
35.33 61.19 30.60 Seagate
SEE
-14.06 49.94 40.76 SealedAir
-6.41 71.31 45.31 SeattleGenetics SGEN
-26.64 9.14 4.49 SemicondctrMfg SMI
3.94 122.97 100.63 SempraEnergy SRE
SCI
1.02 40.28 30.39 ServiceCorp
-0.88 55.36 36.34 ServiceMaster SERV
NOW
24.96 176.56 84.03 ServiceNow
52-Wk %
Sym Hi/Lo Chg Stock
Yld
Net
Sym % PE Last Chg
0.8 53 206.68
1.0 36 130.93
1.9 28 80.72
0.9 18 202.22
1.2 24 20.51
1.0 24 40.19
0.6 46 169.70
... 35 42.11
3.0 43 56.81
2.0 17 104.20
2.0 17 104.64
2.5 25 161.25
1.0 6 139.71
2.4 38 77.64
1.9 40 28.37
0.21070 342.54
3.6 62 53.36
3.5 12 45.27
... 39 555.26
... 19 64.86
... 24 15.65
1.7 89 86.27
... 6 48.46
... 37 63.68
1.9 62 90.23
4.0 32 91.98
... 24 123.57
... 10 6.45
... 9 3.55
6.5 11 11.00
... 18 236.08
2.1 12 78.00
2.2 11 73.16
... 24 36.40
2.1 22 41.48
1.8 22 117.86
... 39 55.93
1.1 31 158.99
1.9 17 53.04
0.4 dd 24.22
2.0 dd 103.98
... dd 44.01
... 31 39.52
0.4 dd 29.96
... 15 26.10
... 25 3122.00
... 18 113.73
2.1 20 85.20
3.5 12 58.06
1.9123 47.94
0.5 dd 36.99
4.8 33 39.36
... dd 93.87
1.3 dd 63.11
0.6 23 272.74
...231 288.85
... dd 76.85
... 49 88.72
5.4 14 12.56
3.6 5 25.79
1.4 dd 39.29
1.3 dd 15.80
1.3 dd 15.50
2.7 14 162.75
1.2 64 67.55
3.2 62 24.25
1.4 dd 29.26
4.4 dd 5.39
... 9 5.75
0.9 22 131.38
3.1 19 48.03
2.2 7 129.36
1.7 21 101.17
1.3 31 351.72
... 16 53.21
3.7 25 80.20
1.7 21 48.57
2.5 15 60.69
... dd 49.84
3.6 ... 44.95
0.3 44 214.25
OPQ
OGE
-1.64 37.32 29.59 OGE Energy
OKE
6.06 61.36 47.14 ONEOK
ORLY
-1.39 279.23 169.43 OReillyAuto
-8.32 78.09 57.20 OccidentalPetrol OXY
7.06 152.50 80.56 OldDomFreight ODFL
ORI
-0.33 22.34 17.91 OldRepublic
OMC
-1.50 86.71 65.32 Omnicom
ON
11.84 27.10 13.65 ON Semi
OTEX
-4.23 40.31 30.88 OpenText
ORCL
-5.18 53.48 43.60 Oracle
ORAN
-1.49 18.57 14.94 Orange
OA
0.89 134.59 93.50 OrbitalATK
IX
1.66 100.03 74.90 Orix
OSK
-16.36 100.26 61.74 Oshkosh
-12.02 96.52 59.26 OwensCorning OC
PCG
-1.92 71.57 37.30 PG&E
PHI
-5.35 38.54 26.97 PLDT
PNC
2.54 163.59 115.45 PNC Fin
PKX
-4.51 93.12 56.48 POSCO
PPG
-6.36 122.07 100.45 PPG Ind
PPL
-9.76 40.20 27.08 PPL
PTC
26.61 81.72 51.02 PTC
PVH
14.23 160.22 96.85 PVH
PCAR
-6.78 79.69 61.93 Paccar
-8.64 131.13 89.73 PackagingCpAm PKG
-5.34 54.86 43.08 PacWestBancorp PACW
... 39.97 26.78 PagSeguroDig PAGS
33.74 197.20 107.37 PaloAltoNtwks PANW
-16.10 212.80 151.17 ParkerHannifin PH
-8.46 32.90 21.12 ParsleyEnergy PE
PAYX
-10.81 73.10 54.20 Paychex
33.42 115.48 57.24 PaycomSoftware PAYC
PYPL
0.33 86.32 42.06 PayPal
PSO
5.50 10.80 7.62 Pearson
-15.62 36.99 29.28 PembinaPipeline PBA
PNR
-3.60 74.84 59.13 Pentair
-1.66 20.26 15.96 People'sUtdFin PBCT
PEP
-8.86 122.51 105.94 PepsiCo
PKI
0.11 84.49 56.21 PerkinElmer
PRGO
-5.93 95.93 63.68 Perrigo
PTR
-2.99 82.33 60.69 PetroChina
35.28 14.93 7.61 PetroleoBrasil PBR
28.48 13.92 6.96 PetroleoBrasilA PBR.A
PFE
-2.90 39.43 31.67 Pfizer
PM
-4.38 123.55 95.51 PhilipMorris
PSX
-4.13 107.47 75.14 Phillips66
PPC
-23.63 38.39 20.28 PilgrimPride
-8.37 66.67 52.25 PinnacleFoods PF
-6.37 92.48 73.81 PinnacleWest PNW
-2.73 192.93 125.46 PioneerNatRscs PXD
11.34 31.42 18.38 PlainsAllAmPipe PAA
5.83 31.77 18.98 PlainsGP
PAGP
-3.80 137.66 77.91 PolarisIndustries PII
POOL
12.70 150.26 97.25 Pool
PX
-7.43 166.95 117.40 Praxair
PFG
-15.52 75.58 57.62 PrincipalFin
-14.64 94.67 75.81 Procter&Gamble PG
PGR
6.61 62.74 38.61 Progressive
PLD
-5.07 67.53 52.98 Prologis
PFPT
31.96 123.87 70.30 Proofpoint
PRU
-11.00 127.14 97.88 PrudentialFin
PUK
-2.11 55.36 41.12 Prudential
-2.72 53.28 41.67 PublicServiceEnt PEG
-4.65 232.21 180.48 PublicStorage PSA
PHM
-9.68 35.21 21.41 PulteGroup
QGEN
0.97 36.34 27.74 Qiagen
QRVO
4.68 86.84 62.68 Qorvo
QCOM
-17.03 69.28 48.92 Qualcomm
DGX
-1.16 112.97 90.10 QuestDiag
YTD 52-Week
% Chg Hi Lo Stock
FSI
JOB
GUTr
GNE
GOV
GTN
GTN.A
GHG
HWKN
HTLD
HTpE
HMI
HBM.WS
INCY
IFON
IMTE
IGLD
ITI
JCI
LPL
LEJU
LUK
LWAY
1.33
2.24
0.07
3.86
12.25
11.65
10.10
12.26
31.80
17.51
22.66
9.58
0.04
63.43
4.49
3.00
4.67
4.09
33.43
11.28
1.05
21.61
5.76
...
-4.8
-1.8
0.5
-1.6
-0.4
-3.8
0.9
-1.8
-2.0
-0.7
-2.6
-4.1
-22.9
-13.8
-3.2
-1.7
-9.5
-2.8
-2.3
-1.8
-3.2
-4.8
52-Wk %
Sym Hi/Lo Chg Stock
Luxoft
LXFT
McDermottIntl MDR
MelintaTherap
MLNT
NN
NNBR
NabrivaTherap
NBRV
NaviosMaritimeMid NAP
NewYorkMtgPfdD NYMTN
NewLinkGenetics NLNK
NightstarTherap NITE
Orbcomm
ORBC
OnconovaTherap ONTX
OneStopSystems OSS
OpesAcqnWt
OPESW
OriginAgritech
SEED
OrionEnergySys OESX
ParkerDrilling
PKD
PurpleInnovation PRPL
Qudian
QD
RangerEnergySvcs RNGR
ReinsuranceGrpDeb RZB
resTORbio
TORC
RexEnergy
REXX
SCYNEXIS
SCYX
39.03
5.38
6.65
21.40
4.39
3.30
22.93
3.95
10.01
8.63
0.78
4.10
0.33
0.64
0.70
0.52
7.88
10.91
6.90
25.90
8.26
0.70
1.26
-2.9
-4.6
-2.8
-2.4
-2.0
-8.3
-0.5
-42.6
-1.6
-4.0
-9.5
1.7
-5.0
-1.0
-4.2
-3.8
-6.0
-5.0
-3.4
-0.4
-11.3
-6.3
-3.8
52-Wk %
Sym Hi/Lo Chg
19.42 -0.6
ShellMidstream SHLX
8.99 3.3
SolGelTech
SLGL
22.85 -2.5
SpragueRscs
SRLP
2.80 -1.8
SteadyMed
STDY
StellarBiotech
0.70 -5.1
SBOT
94.33 -2.6
Synnex
SNX
30.60 -3.5
TC PipeLines
TCP
1.88 -1.5
TakungArt
TKAT
76.89 -1.9
TechData
TECD
TeekayLNG PfdA TGPpA 24.26 -0.4
2.06 -2.2
TelInstrElec
TIK
0.95 -7.7
TransWorldEnt TWMC
USA Tech Pfd
20.75 -5.0
USATP
58.15 -2.8
US Concrete
USCR
3.40 -7.4
UltraPetroleum UPL
137.90 -3.2
ValmontInds
VMI
2.00 1.2
VascularBiogenics VBLT
3.12 -3.0
ViveveMedical
VIVE
VornadoPfdM
VNOpM 22.57 -0.4
vTvTherap
3.35 -7.3
VTVT
WRBerkleyDeb58 WRBpE 24.34 -0.1
24.00 -1.7
Williams
WMB
2.04 -5.6
YogaWorks
YOGA
104.28 -2.9
ZimmerBiomet ZBH
.
B10 | Saturday/Sunday, April 7 - 8, 2018
* ***
THE WALL STREET JOURNAL.
BANKING & FINANCE
Longfin Accused of Securities Violations
Trading in shares of
cryptocurrency firm
is halted as the SEC
questions stock sales
The wild ride of cryptocurrency company Longfin Corp.
came to an abrupt standstill on
Friday, when its shares were
halted and the Securities and
Exchange Commission accused
the company and its chief executive of violating securities
laws.
Longfin was listed on Nasdaq
in December under post-financial-crisis rules that made it
easier for small companies to do
initial public offerings. Within
days, the shares soared 13-fold,
valuing the company at $5.5 billion. The SEC alleges that Longfin’s chief executive and associates effectively sold shares after
the stock soared, in violation of
securities rules, and it obtained
a court order to freeze $27 million of the proceeds.
Longfin shares have been on
a roller coaster, surging after
the company said it acquired a
cryptocurrency company and
subsequently falling 85% over
six days following its removal
from the Russell 2000 small-cap
index. Its shares rose 185% in
the last three days of this week,
including a 47% rise on Friday
before they were halted. At the
time of the trading halt, Longfin’s market valuation stood at
$2.1 billion.
On Monday, the company
disclosed an SEC probe while
also reporting material weak-
NASDAQ
BY AARON BACK
AND JEAN EAGLESHAM
The firm made its Nasdaq debut in December. The SEC alleges shares were illegally sold and moved to freeze $27 million in proceeds.
nesses in its financial controls.
A review of the company’s securities filings, detailed in a Wall
Street Journal article on Monday, found failures to disclose
important information and misstatements of facts.
Nasdaq said Friday it was
halting Longfin shares until the
company satisfied its request
for unspecified additional information.
Longfin said in a statement
that it would cooperate with
Nasdaq and the SEC.
The SEC on Friday said Longfin’s founder and CEO, Venkat
Meenavalli, had the company issue more than two million
shares to Andy Altahawi, who is
described in filings as an adviser to Longfin, and tens of
thousands of shares to two
other individuals, Dorababu
Penumarthi and Suresh Tammineedi. The SEC, in its civil action, alleges that Messrs. Penumarthi and Tammineedi were
acting as “nominees” for Mr.
Meenavalli, or holding shares on
his behalf.
After the company’s share
price rose sharply, the SEC alleges, these three individuals il-
legally sold large blocks of
shares, even though the shares
weren’t registered for sale. In
its complaint, the SEC didn’t say
exactly when the shares were
sold, but that the sale occurred
when the stock price was
“highly elevated.” The SEC said
it has obtained a court order to
freeze $27 million of proceeds
from those sales to prevent the
funds from being transferred
out of the country.
According to its filings, Longfin is based out of a shared office space in Manhattan that
had three desks and no comput-
ers when the Journal visited.
Mr. Meenavalli, an Indian entrepreneur, previously told the
Journal he is based out of
Dubai. The bulk of the company’s revenue comes from a
Singapore-based subsidiary, according to its filings.
Mr. Altahawi was listed on
Longin’s website as a director
until September, but he later
told The Journal that was untrue. According to the company’s pre-IPO prospectus, he
was issued just over two million
shares in exchange for “legal
and business development advi-
BY DANIEL KRUGER
Continued from page B1
A decade after the financial
crisis, The Wall Street Journal
has checked in on dozens of the
bankers, government officials,
chief executives, hedge-fund
managers and others who left
a mark on that period to find
out what they are doing now.
Today, we spotlight former Attorney General Eric Holder and
former Treasury Secretary
Timothy Geithner.
Eric Holder has gone from
serving as the nation’s top
prosecutor to being one of the
business world’s leading advisers.
He was sworn in as U.S. attorney general in February
2009 as policy makers were
straining to support financial
markets after the collapse of
Lehman Brothers a few months
earlier.
Under his leadership, the
Justice Department negotiated
several billion-dollar settlements for fraud tied to the
mortgage market. But Mr.
Holder has faced criticism for
not prosecuting anyone on
Wall Street for their roles in
the financial crisis.
He stepped down in 2015 to
return to Covington & Burling
LLP, a Washington law firm
known for representing banking clients, where Mr. Holder is
part of a unit charged with in-
KEVIN LAMARQUE/REUTERS
Advising Firms, Watching Politics
COIN
Former Attorney General Eric Holder is at a Washington law firm.
ternal corporate investigations.
The 67-year-old attorney recently took on the case of ridehailing company Uber Technologies Inc., which had been
dogged by allegations of gender bias and sexual harassment. Mr. Holder’s team in
June 2017 recommended that
the company reduce founder
Travis Kalanick’s leadership
role and that it make executives more accountable for fixing problems. Mr. Kalanick
stepped down as chief executive later that year under pressure from Uber shareholders.
Mr. Holder declined a request for an interview.
He has recused himself from
working on matters that were
the subject of Justice Department litigation during his time
in office. But he still gets
blamed for not prosecuting
any individuals from companies at the heart of the financial crisis.
“A lot of Americans felt
they were screwed, and all the
fat cats that got them into the
situation got off scot-free,”
said Alan Blinder, a Princeton
University economics profes-
sor and former vice chairman
of the Federal Reserve.
The former attorney general
has said the view that he went
easy on banks is “misplaced.”
At a Democratic Platform
Drafting Committee hearing in
June 2016, he said, “we had in
some cases statutory and
sometimes factual inabilities
to bring the cases we wanted
to bring.”
Mr. Holder, who also served
as deputy attorney general under President Bill Clinton,
maintains a toehold in politics.
He heads the National Democratic Redistricting Committee,
where he is pushing states to
redraw legislative district
maps that the group says have
been used to help protect Republican majorities.
He has criticized President
Donald Trump’s administration, saying that the president’s broadsides against the
Justice Department and the
Federal Bureau of Investigation
undermine the credibility of
law-enforcement agents.
Mr. Holder hasn’t said
whether he plans to seek office.
“I think I’ll make a decision
by the end of the year about
whether there is another chapter in my government service,”
he told reporters at a Christian
Science Monitor breakfast in
February.
From U.S. Treasury to Private Equity
Since helping steer the U.S.
through the global financial
crisis, former Treasury Secretary Timothy Geithner has
been cashing in.
He signed a book deal and
hit the six-figure-speech lecture circuit. He so impressed
one audience, at Warburg Pincus LLC’s annual meeting, that
the Manhattan investment
firm hired him as its president.
In March 2014, he started
at the firm known for staking
oil explorers and multibilliondollar buyouts of retailer Neiman Marcus and eye-health
company Bausch & Lomb. He
wasn’t the first former Treasury secretary to go from
Washington to Wall Street.
Unlike predecessors, however,
his arrival wasn’t a homecoming. He had never worked for
a financial firm or a bank.
Mr. Geithner was a civil
servant who had climbed the
technocratic career ladder
one financial crisis after another—Mexico, Asia, Russia—
until he became head of the
Federal Reserve Bank of New
York in 2003.
He was still there four
HARUYOSHI YAMAGUCHI/BLOOMBERG NEWS
BY RYAN DEZEMBER
Timothy Geithner has become president of Warburg Pincus.
years later when financial
markets began to implode
and he was tapped, in the
middle of the maelstrom, by
President-elect Barack Obama
to see through the financial
system’s rescue as Treasury
secretary.
His confirmation hearing
revealed him to be very different from the banking titans who typically held the
post, never mind his boyish
looks: He was well-off enough
to afford household help, yet
used TurboTax to prepare his
returns.
When he joined Warburg,
New York state records show,
he had to borrow the cash that
the firm requires its executives to invest in its privateequity funds. So-called skin-inthe-game can amount to
millions of dollars up front but
can return staggering wealth
over time.
Mr. Geithner, 56 years old,
declined to comment, and a
Warburg spokeswoman said
the firm doesn’t discuss the
particulars of his days. Generally, she said, Mr. Geithner
strategizes with the firm’s cochief executives, meets with
investors and, sometimes,
gets involved with particular
investments, usually in Asia
or involving financial firms. A
Warburg spokesman added
that Mr. Geithner also lectures at the Yale School of
Management.
Mr. Geithner refers to himself as a “backstage guy” in
his 580-page memoir, “Stress
Test: Reflections on Financial
Crises.” He found the spotlight glaring and felt he sometimes struggled to articulate
his rescue plan.
“I’d somehow managed to
convince the public we’d be
overly generous to Wall Street
while convincing the markets
we wouldn’t be generous
enough,” he wrote of his first
speech as Treasury secretary.
Some—by no means all—of
the anger over bank bailouts
could have been soothed had
he better explained his unpopular but necessary decisions,
he wrote: “We did save the
economy, but we lost the
country doing it.”
harder for platforms to continue shunning regulation. SEC
Chairman Jay Clayton has said
that most tokens issued
through ICOs are securities,
meaning they can only be
traded legally on a licensed exchange or electronic trading
venue. Businesses raised $4
billion during the first quarter
through ICOs, more than half
of the $6.5 billion raised in
ICOs for all of 2017, according
to Token Report.
The SEC has issued subpoenas or requests for information to dozens of companies
that conducted ICOs, according to people familiar with the
matter, as the regulator tries
to sort out which deals evaded
securities laws and which tokens may have a valid excuse
from regulation.
The threat of a regulatory
enforcement action has scared
Coinbase and some other bitcoin-related firms from listing
new tokens. But Coinbase said
in March that it planned to
support tokens in the future,
although it declined to disclose which assets it might
add. The company has already
launched a service for storing
customer assets.
Coinbase, whose backers include venture-capital firms
Greylock Partners and Andreessen Horowitz, could seek
a license from the SEC as an
exchange, but registering as a
broker-dealer is viewed as a
less cumbersome step that
would allow the company to
move into markets the SEC
India Is Latest
To Enact Limits
The regulatory clampdown
on cryptocurrencies is gaining
momentum around the world,
adding pressure to asset values as governments intensify
efforts to rein in speculative
trading and criminal activity.
The latest country to take
action is India, which this past
week vowed to prevent banks
and financial institutions from
engaging in cryptocurrencies.
Regulated firms “shall not deal
with or provide services to any
individual or business entities
dealing with or settling” digital
currencies and should exit any
existing relationships within
three months, the Reserve
Bank of India said.
Indian authorities stopped
short of a total ban on digital
currencies. But the clampdown
on banks is another blow to
the market, which has already
seen regulators in the U.S.,
Japan, South Korea and China
sory services” related to the
IPO. In a recent interview with
The Journal, Mr. Altahawi suggested that he hasn’t sold his
shares even though their lockup
expired in March. “I’m not really a seller…I might sell a small
amount,” he said.
Messrs. Meenavalli and Altahawi didn’t reply to requests
for comment on Friday. Mr.
Meenavalli earlier told The
Journal he rejects any suggestion of financial misconduct.
The Longfin prospectus
doesn’t mention Messrs. Penumarthi or Mr. Tammineedi. But
Mr. Tammineedi was a director
of Stampede Capital, a company
based in Hyderabad, India, that
was founded by Mr. Meenavalli
and owns 37% of Longfin
shares. Mr. Tammineedi resigned as a Stampede Capital
director, effective Feb. 14, according to a Stampede Capital
statement. Neither man could
be reached for comment.
Despite disclosure of the SEC
investigation, Longfin shares
soared in recent days, until being halted Friday.
Short sellers had bet heavily
against Longfin shares and Mr.
Meenavalli had criticized them.
The shares are down 60% from
their closing high in late March,
but up more than 460% from
the IPO price.
The stock’s rebound this
week began around the time
that CNBC said Mr. Meenavalli
would appear for an interview.
During that Wednesday interview, Mr. Meenavalli said Longfin is profitable after stripping
out shareholder compensation
expenses and he plans to expand the company’s U.S. operations.
regulates. Many broker-dealers operate licensed electronic
trading systems, which are alternatives to exchanges that
face less extensive regulation.
Still, the step would expose
Coinbase to a new type of regulatory risk. The SEC can examine broker-dealers for compliance with the extensive
array of rules that brokers
face. SEC examiners could
comb through the company’s
trading records, the systems
its uses to protect customers
from cybersecurity threats, as
well as its policies for defending against insider trading and
market manipulation.
Coinbase faced manipulation-related allegations last
year after the price of a bitcoin offshoot called Bitcoin
Cash climbed in value before
the platform began facilitating
trades in the alternative currency. The company said it
would investigate the matter.
As a broker, Coinbase’s
platform would only be allowed to offer tokens that
comply with securities laws.
That would mean token issuers would have to register
their sale with the SEC, providing investors with an extensive set of financial disclosures. Token issuers can avoid
those disclosures if they limit
the sale to institutions and
millionaires.
At least one other firm involved with virtual currency
trading has registered with
the SEC as a brokerage firm.
Templum LLC operates a licensed brokerage firm and alternative trading system and
plans to offer startups a platform for selling regulated tokens as well as a market for
trading them.
enact restrictions on trading
and fundraising.
As regulators encroach
more on the asset class, they
are testing what many consider its main appeal: the perceived lack of government and
central bank involvement.
That’s one of several reasons
the prices of bitcoin and other
digital currencies have slumped
in 2018.
Late Friday, bitcoin was
trading at $6,602.93, according
to research site CoinDesk. It
has lost half its value since
surging over 1,300% in last
year’s frenzied cryptocurrency
mania, peaking near $20,000
in December.
India’s central bank said the
currencies’ underlying blockchain technology made it difficult to protect consumers from
scams and to prevent money
laundering. The central bank is
also exploring issuing its own
digital currency as part of its
efforts toward financial inclusion.
—Steven Russolillo
and Gregor Stuart Hunter
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | B11
* * * *
MARKETS
Trade Sets Markets’ Tone
CHINA STRINGER NETWORK/REUTERS
BY SAM GOLDFARB
China’s big firms are driving earnings growth. An Alibaba concept seafood store in Hangzhou.
In China, Profits Swell
BY KENAN MACHADO
Profits at China’s largest
publicly listed companies last
year increased at their fastest
clip since 2010, but the outlook for 2018 isn’t so bright.
Earnings per share of companies in the MSCI China Index—which includes 152 largeand midcap stocks mostly
listed in China, Hong Kong and
the U.S.—likely increased
about 26% in 2017, according
to research from Nomura.
The main drivers were big
tech companies like Alibaba
Group Holding Ltd. and Tencent Holdings Ltd., whose
profits surged, as well as energy, industrial and real-estate
companies that benefited from
higher oil and property prices.
The country’s top banks also
did better thanks to strong interest-income growth. Some
companies haven’t reported
yet.
China’s economy expanded
6.9% last year, in line with the
previous two years but down
from a more than 10% increase
in 2010. Last year’s profit
gains helped power a 37% increase in the MSCI China In-
dex, far exceeding the 19% increase in the broader MSCI
Emerging Markets Index.
Numerous industrial sectors
were emerging from low or
even negative profits in 2016,
hence an elevated jump the
following year, said Mixo Das,
Asia portfolio strategist at J.P.
Morgan.
Large state-owned enterprises benefited from Beijing’s
campaign to tackle excessive
capacity and curb supply in
sectors like coal and steel last
year, said Jacky Zhang, an analyst at BOC International in
Shanghai.
For 2018, prospects aren’t
looking so robust.
China’s crackdown on speculative investing, off-balancesheet lending and its campaign to reduce leverage in the
financial system could damp
profit margins and growth opportunities for some companies.
A possible trade war between the U.S. and China,
meanwhile, has weighed on
stocks in recent weeks. It is
too soon to gauge the impact
on corporate earnings, as it remains unclear which tariffs
will be enforced. But China’s
planned 25% tariffs on selected U.S. goods would hurt
2.7% of the Asian country’s total imports, Morgan Stanley
said in a recent note.
Wendy Liu, Nomura’s head
of China equity research, said
she expects earnings at Chinese internet firms to rise 16%
in 2018 after expanding the
previous year. Profits of hardware technology firms could
slow to 20% after surging 121%
in 2017.
“There will likely be a moderation in top-line growth
from 2017’s high base,” she
said, noting that investments
and expenses in tech are likely
to increase.
Beijing’s efforts to cut debt
in the economy have forced
some ailing or heavily indebted firms out of the market, helping rivals gain market
share and pricing power, Ms.
Liu said. Overall, she expects
growth in earnings per share
at companies in the MSCI
China Index to slow to 15% in
2018 and 16% next year.
—Stella Yifan Xie
and Gregor Stuart Hunter
contributed to this article.
U.S. government bonds
strengthened Friday as a
fresh round of tariff threats
from the U.S. and China sent
investors back to the safety
of government debt and away
from stocks.
The yield on the benchmark 10-year U.S. Treasury
note settled at 2.779%, compared with 2.830% Thursday.
Yields, which fall when bond
prices rise, slipped overnight
after President
FRIDAY’S
Donald Trump
MARKETS on Thursday said
he was considering tariffs on an
additional $100 billion in imports from China. That
prompted a Chinese official to
say that the country was “prepared to hit back forcefully
and without hesitation.”
The official, Commerce
Ministry spokesman Gao
Feng, also denied that Beijing
and Washington were engaged in any negotiations—a
rebuttal to remarks by some
U.S. officials that had helped
ease concerns of investors
earlier in the week.
Renewed worries about a
trade war sapped investors’
appetite for riskier assets,
causing stocks to sink while
Treasurys rallied. The major
stock indexes finished lower
for the week and broke the
Dow Jones Industrial Average’s three-day winning
streak, its longest in more
than a month.
The selloff in stocks Friday
was broad as all 11 major sectors of the S&P 500 declined,
with the deepest drops
among companies that stand
to suffer from an escalation
in protectionist trade policies, such as big industrial
manufacturers like Boeing
and Caterpillar.
On Friday, the Dow industrials fell 572.46 points, or
2.3%, to 23932.76. The S&P
500 slid 58.37 points, or
2.2%, to 2604.47, and the
Seam Opens for U.S. Coal Miners
BY RHIANNON HOYLE
U.S. coal miners are poised
to strike a rich vein as a result
of problems Down Under.
Fears of disruptions to Australia’s coal-export operations,
the world’s largest by volume,
have arrested a slide in seaborne coal prices and may
spark extra demand for cargoes from
COMMODITIES the U.S.
Australian rail operator Aurizon Holdings Ltd. is
threatening to reduce capacity
on the country’s largest coalexport rail network by roughly
20 million tons a year, a 7%
cut in a global export market
that ships 280 million tons annually. Aurizon’s plan follows
a preliminary regulatory decision that will cap what it can
charge for access well below
what it wants users to pay.
Cuts to rail capacity would
provide an opportunity for
U.S. coal companies to snatch
up market share in Asia,
where demand is steady
among steelmakers in India,
Fueling Up
Concerns over Australian exports
have halted falling coal prices.
$280 a metric ton
260
240
220
200
180
Jan.
Feb.
March
Source: S&P Global Platts
THE WALL STREET JOURNAL.
Japan and China.
Australia accounts for
about 60% of the global export
market, while the U.S. share is
about 16%.
The price of coking coal,
which is used to make steel,
steadied this week—following
a 15% collapse since the start
of March to a four-month
low—after Cyclone Iris inter-
rupted Australian shipments
by forcing the closure of some
coal ports.
Coking coal fetched $195.50
a metric ton on Friday, according to S&P Global Platts.
Aurizon is miners’ only option to transport by rail goods
from the mines of central
Queensland to port terminals
along the coast.
“The ‘Aurizon threat’ remains a sleeping beast which
could deliver another shock to
an already undersupplied market,” Macquarie Group said in
a note. Credit Suisse, RBC
Capital Markets and others
have increased their coal-price
forecasts.
A year ago, another cyclone
lashed eastern Australia. The
storm disrupted shipments for
weeks and caused coal prices
in the country to double to
$300 a ton.
American producers were
quick to fill the void. U.S. exports increased by more than
one-third in 2017, to about 50
million tons, according to U.S.
Energy Information Administration data.
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BY SARAH MCFARLANE
AND ALISON SIDER
Oil prices fell, capping their
worst week in two months,
amid rising trade tensions between the U.S. and China.
Crude prices have lately
mirrored stock markets, which
stumbled as fears of a trade
war between the world’s two
biggest economies intensified
throughout the week.
“They are just moving in
lockstep,” John Saucer, vice
president of research at Mobius Risk Group, said of oil
and stocks. The selloff in oil
was “driven by equity markets,
but does create its own momentum,” he said.
Crude for May delivery fell
$1.48, or 2.3%, to $62.06 a
barrel on the New York Mercantile Exchange on Friday.
Prices ended the week down
4.4%, their worst decline since
early February.
Brent, the global benchmark, dropped $1.22, or 1.8%,
to $67.11 a barrel on ICE Futures Europe, ending 3.2%
down on the week.
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WSJ Dollar Index
2.84%
84.3
2.82
84.2
2.80
84.1
2.78
84.0
2.76
One-minute intervals
3 a.m.
6
9
noon
One-minute intervals
83.9
3
3 a.m. 6
Sources: FactSet (yield); WSJ Market Data Group (index)
Nasdaq Composite lost 161.44
points, or 2.3%, to 6915.11.
The major U.S. stock indexes
have fallen in three of the
past four weeks.
For the week, the Dow fell
0.7%, the S&P 500 shed 1.4%
and the Nasdaq lost 2.1%.
The WSJ Dollar Index,
which measures the U.S. currency against a basket of 16
others, fell 0.2% Friday. The
dollar was down 0.4% against
the Japanese yen to ¥106.92.
The U.S. dollar has fallen
for five straight quarters and
is down 7.6% over the past 12
months, as expectations of
accelerating growth and
tightening monetary policy
abroad have pushed investors
out of the currency.
Friday’s mixed jobs report
provided another reason to
buy bonds. While average
hourly earnings for privatesector workers rose at the expected rate, the U.S. added
just 103,000 jobs in March,
below the 178,000 gain anticipated by economists polled by
The Wall Street Journal and a
slowdown from February.
Bond
investors
have
watched jobs data closely recently for signs that a tightening labor market could pro-
For more information visit:
wsj.com/classifieds
© 2018 Dow Jones & Company, Inc.
All Rights Reserved.
9
noon
3
THE WALL STREET JOURNAL.
duce a uptick in inflation—a
main threat to government
bonds because it erodes the
purchasing power of their
fixed returns.
In a speech Friday, Federal
Reserve Chairman Jerome
Powell reiterated his message
that the central bank wants
to see the labor market
strengthen further and let inflation reach its 2% target
without allowing prices to
rise so quickly that it would
require more drastic intervention from the Fed.
Bets that inflation will rise
have helped lift Treasury
yields this year, though the 10year yield is down from the
peak it reached in February.
While Treasurys have benefited from trade jitters, analysts have noted that the response could easily have been
greater given the volatility of
the stock market and the potential for a trade conflict to
create economic headwinds.
“There are still the concerns about what’s going on
with the trade situation, but
even that is being taken with a
bit more grain of salt these
days,” said John Canavan,
market analyst at Stone &
McCarthy Research Associates.
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B12 | Saturday/Sunday, April 7 - 8, 2018
THE WALL STREET JOURNAL.
* ***
MARKETS
Reason for Optimism: Bearish Investors
BY RIVA GOLD
Investor sentiment has
quickly shifted from extremely
optimistic to outright bearish—an encouraging contrarian signal for those market
participants who have long
worried that Wall Street was
overly bullish.
As concerns about trade
and technology stocks heat up,
investors are at their most
pessimistic in more than seven
months, according to the
American Association of Individual Investors’ most recent weekly sentiment survey,
which measures participants’
outlook for the stock market
over the next six months. In
January, survey participants
were at their most bullish
since late 2010.
The swift turnaround comes
as investors pull money out of
equity funds, stock-market
valuations drop and an increasing number of put options are taken out on the S&P
500 to protect against declines
relative to call options that
bet on gains. Meanwhile, the
Cboe Volatility Index, known
as Wall Street’s “fear gauge,”
is up 95% for the year so far.
“There’s more of an extreme fear reaction now,” said
Edmund Shing, global head of
equity derivative strategy at
BNP Paribas. “As a contrarian
indicator, that makes me actually bullish,” he said.
Investors often worry most
when everybody else in the
market gets very bullish, with
many analysts noting that
Wall Street optimism has often reached its highs right before big market falls.
When the mood among investors sours, many market
participants think that it indicates selling pressure is bottoming out and that more
money could enter the market,
providing the potential for
gains as long as the economy
remains on track.
The S&P 500 is down 2.6%
so far this year, even as corpo-
Market participants have become more cautious in recent weeks, with funds dialing down
holdings in stocks and sending equity-market valuations back to their lowest since 2016.
AAII Sentiment Survey*
60%
50
40
Bearish
30
Bullish
Neutral
20
10
0
April ’17
May
June
July
August
Sept.
Oct.
Nov.
Dec.
Jan. ’18
Forward one-year price/earnings ratio
CBOE Volatility Index
120
19
35
110
18
100
S&P 500
25
17
90
20
Nikkei
Stock
Average
16
80
15
15
70
10
Stoxx Europe 600
14
60
13
50
2017
5
0
2017
’18
April
30
’18
2017
’18
*Data represent expected direction of the stock market over the next six months.
†Active money managers' average exposure to U.S. equities
Sources: American Association of Individual Investors (sentiment survey); National Association
of Active Investment Managers (exposure index); FactSet (P/E ratios, volatility index)
rate-earnings
expectations
have climbed, share buybacks
have risen and the economy
has continued to grow.
Mr. Shing said signals from
options markets, equity flows
and sentiment gauges are collectively the most downbeat
he has seen since shortly before the U.S. presidential election in November 2016. U.S. retail investors appear to be the
biggest sellers of stocks, while
institutional fund managers
have largely bought more protection against further falls or
shifted some money out of equities and into short-term
debt, he added, based on his
analysis of fund redemptions
and options markets.
Investors have redeemed a
net $25 billion from the popular SPDR S&P 500 exchangetraded fund so far this year,
according to FactSet. More
broadly, U.S. equity funds
overall haven’t had net retail
inflows for any week since
2017, according to fund-tracker
EPFR Global.
Meanwhile, the National
Association of Active Investment Managers Exposure Index, which tracks active
money managers’ average exposure to U.S. equity markets,
fell to 55.57 this past week,
down from an average of 71 in
the first quarter of the year
THE WALL STREET JOURNAL.
and an average of roughly 63
since mid-2006. It was as high
as 121 in December.
To be sure, some metrics
continue to suggest that sentiment is far from extremely
bearish.
Options and derivatives on
the S&P 500 currently show
that investors expect more
volatility ahead, but not necessarily a huge decline for the
index, said Randy Frederick,
vice president of trading and
derivatives at the Schwab Center for Financial Research.
“I’d expect the put-call ratio
[on the S&P 500] to be a lot
higher than it is now if there
were concern of a much bigger
downturn,” he added.
Still, the moves mark a
sharp turnaround from the
mood in late 2017 and most of
January, when investors
poured record amounts of
money into equity funds and
the amount of cash squirreled
away by institutional fund
managers reached five-year
lows, according to Bank of
America
Merrill
Lynch’s
monthly survey.
Ed Keon, chief investment
strategist at investment firm
QMA, recalls speaking at an
investor conference in January, when the market was already up 7% for 2018. “I remember saying the S&P 500
HEARD ON THE STREET
FINANCIAL ANALYSIS & COMMENTARY
Deal or Not, NXP Worth the Risk
Bargaining Chip
Enterprise value to Ebitda*
16 times
Deal with
Qualcomm
14
Increased offer
12
10
8
NXP
Infineon
6
4
2013
’14
’15
’16
’17
’18
*Earnings before interest, taxes, depreciation and amortization
Source: FactSet
THE WALL STREET JOURNAL.
Broadcom’s $120 billion
takeover proposal this year.
The White House’s decision to block the Broadcom
bid on national security
grounds could make it hard
for Qualcomm to propose
remedies in China that involve sharing technology or
selling assets. Almost two-
thirds of the company’s revenue comes from the country.
Car chips are likely also of
strategic importance to
China. This gives it a reason
to find ways to promote its
own chip industry as part of
any package of remedies.
If investors’ concerns are
understandable, particularly
in light of this week’s escalation of tensions over technology sharing and trade,
the risks of the Qualcomm
bid collapsing may be priced
in.
NXP now trades at
roughly 12 times earnings
before interest, taxes, depreciation and amortization,
compared with 11 times for
Infineon Technologies, the
second-largest player in car
chips. Arguably the market
leader deserves a premium;
it traded at one in the past.
If the deal breaks down
Qualcomm will need to pay
NXP a breakup fee valued at
roughly $5 a share.
It is easy to see how
China might use its ability to
block Qualcomm’s bid for
NXP as a bargaining chip.
But even if it did, the downside for NXP stock looks limited. This could be a bet on
an easing of trade tensions
worth taking.
—Stephen Wilmot
Commodities Flash a Warning Sign
This week’s headlines have
all been about trade wars,
real or imagined. But the response from economists has
been largely sanguine: Global
growth itself appears to be
holding up well.
But is it really? Commodity markets, and global industry, are starting to send
some worrying signals.
While manufacturing in
most big economies is still
expanding, the pace of those
gains has slowed noticeably
in recent months. Meanwhile,
key industrial commodities
like copper and aluminum
also started selling off in late
2017, well before trade worries started spooking markets.
The implication: The
strong global manufacturing
rebound evident since late
2016 may have already—or
March
NAAIM Exposure Index†
Email: heard@wsj.com
Chip giant Qualcomm’s
$44 billion acquisition of
NXP Semiconductors may
have become collateral damage in the trade spat between the U.S. and China. If
the current tensions blow
over, however, NXP shareholders stand to make a double-digit-percentage return.
Qualcomm has obtained
eight out of nine necessary
antitrust approvals for the
deal, which was first announced in October 2016;
only China’s blessing remains. This has been delayed
for unclear reasons. NXP
shares are now trading
roughly 10% below the
higher price Qualcomm offered in February.
NXP is the world leader in
automotive microchips, a
field expected to expand rapidly. This is the attraction
for Qualcomm, which is under pressure to revive
growth. It needs the deal all
the more for having rebutted
Feb.
Stuttering
Manufacturing purchasing
managers indexes
65
60
55
U.S.
Eurozone
Japan
China (Caixin)
50
45
2015
’16
’17
’18
Note: Over 50 indicates expansion on the month
Sources: Thomson Reuters; CEIC
be close to—peaking.
Slowing momentum in
China has been evident for
months. A modest bounce after February’s Lunar New
Year notwithstanding,
China’s official manufacturing purchasing managers index appears to have peaked
in the third quarter of last
year, while Caixin’s alternative index has also trended
sideways since then.
What’s new is that other
major indexes are now following suit.
Markit’s eurozone PMI is
down four points since December, although it remains
comfortably above the 50point mark separating expansion from contraction. Japanese and Korean PMIs have
also nudged lower.
Even in the U.S., strong
headline numbers have
masked slowing growth in
new orders since the fourth
quarter of 2017, along with a
rebound in inventories.
Although oil has held up
relatively well on the back of
rising geopolitical concerns,
copper and coal prices have
shed over 5% since late December.
Aluminum prices are down
over 10%, and iron ore is off
nearly 9%.
Their weakness is particularly striking given that the
dollar has continued to slide
over the period, which usually helps commodities.
Some of that weakness is
likely related to rising trade
tensions and rebounding Chinese production.
But the fact that the selloff is so broad-based, and
started around the time
global PMIs began peaking,
suggests slowing industrial
growth is the main culprit.
Investors hoping comforting tales of a synchronized
global uptick will protect
their portfolios from severe
damage even if trade tensions keep rising should
think again.
—Nathaniel Taplin
expected return was 10% for
the year, and people mocked
me for being overly cautious,”
he said.
“Expectations have tempered a bit,” Mr. Keon said.
Many investors think the
caution is warranted, given
rising interest rates, increasing concerns about a possible
trade war between the U.S.
and China and mounting pressure on the technology sector.
But some view the shift in
investors’ mood as a reassuring sign about the health of
the market.
“With investor optimism
lower now, it should be easier
for equity markets to make
further gains from here if
global
growth
remains
healthy,” said Mike Bell, global
market strategist at J.P. Morgan Asset Management.
The firm is maintaining its
sizable allocation to U.S. and
emerging-market equities despite the recent downturn. The
exuberance is gone, and stocks
have gotten cheaper, Mr. Bell
said.
Equity valuations remain
elevated compared with their
historical averages, but they
have come down.
The forward price/earnings
ratio of the S&P 500 has fallen
to 16.5—its lowest since November 2016—from as high as
18.6 in late January.
The Stoxx Europe 600 and
Japan’s Nikkei Stock Average
are also trading around their
lowest forward P/E ratios
since 2016.
“You’ve seen a correction
that has taken valuations back
to less stretched levels and
taken sentiment back to less
stretched levels,” said John
Stopford, head of multiasset
income at Investec Asset Management.
After an unusual period of
extreme bullishness, the market mentality is now back to
“climbing a wall of worry,” he
said, a supportive factor in his
belief that stocks have more
room to climb.
WSJ.com/Heard
Jobs Take a Gut Punch
And Trade Is a Culprit
There are good reasons to
brush off the weak March
jobs number. It was payback
from a rousing February, the
weather was miserable and
economists have been way
too optimistic about the
March figures in recent
years.
Investors can be somewhat comforted by those explanations. But they
shouldn’t ignore two other
possible reasons why the
economy created just
103,000 jobs, down from a
revised 326,000 in February
and the second-lowest figure
of the past 12 months.
President Donald Trump
began his trade tirade right
at the start of March with
tweets about putting tariffs
on steel and aluminum,
which he quickly followed
with an announcement about
the penalties. That set off a
month of dueling threats and
actual tariffs that has only
gotten more heated.
Mr. Trump’s first actions
sent stocks tumbling, setting
up March to be a volatile
and down month for the
market and leading to the
first quarterly decline in
nine quarters.
The combination of a
trade dispute and a volatile
stock market could make executives, who have been
struggling to hire in a tight
job market, a bit nervous. It
wasn’t too long ago that executives were too worried
about weak economic growth
to hire more than absolutely
necessary. Deutsche Bank
economist Torsten Slok says
nervousness about trade was
jarring to executives because
of the strong, pro-business
sentiment that prevailed until early this year.
The evidence for that is
most clear in employment by
goods producers, which was
up just 15,000—compared
with a gain of 106,000 in
February—largely because of
a 15,000-job decline in construction hiring. It is no coincidence that builders use
lots of aluminum and steel,
though they also were hit by
weather. While goods producers are a smaller part of
the economy than the service sector, they had been
big drivers of job growth in
recent months after choppy
gains last year. It is just one
month of data from a miserable month, weatherwise,
but the overlap with the
start of a possible trade war
may not be a coincidence.
—Ken Brown
OVERHEARD
President Donald Trump,
who has said that ending the
North American Free Trade
Agreement will make all three
signatories “stronger and better,” just got some surprising
backup from an academic
study.
A study published in the
American Journal of Preventive
Medicine asserted that joining
the agreement coincided with
a rise in the caloric intake of
Canadians from 1989 to 2006.
During those years, imports of
U.S. food and beverages rose
by $5.26 billion. The added calories could lead to a weight
gain of 4 to 20 pounds for a
man over the age of 40, the
researchers said.
One U.S. proposal in renegotiating Nafta would have been
to ban “front-of-pack” nutrition
labels in Canada spelling out
calorie counts and the like. The
U.S. has dubbed the labels
“protectionist.”
Canada rejected the proposal.
.
Hapless cutie or
scary, macho
bear? The real
panda story is not
black and white
The womanly art
of having an
opinion: a lively
cultural history
of 10 thinkers
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Saturday/Sunday, April 7 - 8, 2018 | C1
REPUBLICAN NOMINEE Richard Nixon, above, campaigning in Denver. Below, left to right: Lyndon Johnson readies his speech declaring that he won’t seek reelection; Chicago police crack down on
protesters outside the Democratic National Convention; Robert Kennedy campaigns in Portland, Ore., weeks before his assassination. Bottom: A captured Viet Cong fighter during the Tet Offensive.
With Nixon in ’68
Fifty years ago, American politics was upended by war, protest, assassination and riot, creating cultural
divides that are still with us today. It was the year the country came apart, writes Patrick J. Buchanan.
CORBIS/GETTY IMAGES
O
n the night of Jan. 31, 1968, as
tens of thousands of Viet Cong
guerrillas attacked the major cities
of South Vietnam, in violation of a
Lunar New Year truce, Richard
Nixon was flying secretly to Boston. At 29, and Nixon’s longestserving aide, I was with him. Advance man Nick Ruwe met us at Logan Airport and drove
us to a motel in Nashua, N.H., where Nixon had been preregistered as “Benjamin Chapman.” The next day, only
hours before the deadline, Nixon filed in Concord to enter
the state’s Republican primary, just six weeks away.
On Feb. 2, the New York Times story “Nixon Announces
for Presidency” was dwarfed by a giant headline: “Street
Clashes Go On in Vietnam; Foe Still Holds Parts of Cities;
Johnson Pledges Never to Yield.” Dominating the page
was the photograph of a captured Viet Cong, hands tied,
being executed on a Saigon street by South Vietnam’s national police chief, firing a bullet into his head from inches
away. Eddie Adams’s photo would win the Pulitzer Prize.
America’s most divisive year since the Civil War had
begun.
Nixon’s lone opponent for the Republican nomination
was George Romney, three-term governor of Michigan and
a legend at American Motors, where he had promoted the
Nash Rambler. Romney had led in the polls in December
1966 and seemed the clear favorite, but by now he was not.
After campaigning in 35 states in 1966, leading the GOP
to its greatest off-year victory in congressional races since
1946, Nixon had declared a moratorium on politics and
dropped out of sight. Is it wise, I asked him, to cede Romney such a tremendous head start? Sensing what the press
would do to Romney, Nixon told me, “Let ’em chew on him
for a little while.”
Nixon’s instincts proved right. Romney was unprepared.
On pre-campaign swings in 1967 he bickered with the
press, and that August he made a fatal blunder. Explaining
on a TV show why he was changing his position on the
war, Romney said that on a previous visit to Vietnam, “I
just had the greatest brainwashing anybody can get” from
U.S. generals and diplomats.
The ridicule and mockery were ceaseless and universal.
Sen. Eugene McCarthy said that, in Romney’s case, a full
brainwashing was unneeded, as “a light rinse would have
sufficed.” Romney plummeted in the polls, never to recover.
As Romney spun his wheels in New Hampshire, Nixon
ignored his calls to debate, declining even to mention his
name. Our polls showed us heading for a 5-1 landslide that
would erase the “loser” image that had clung to Nixon
since his loss to JFK in 1960 and his defeat in the California governor’s race in 1962.
With humiliation ahead, Romney abruptly ended his
candidacy on Feb. 28, 1968, robbing Nixon of his triumph.
What historians call “crazy March” now began. In the
Democratic primary in New Hampshire, Sen. McCarthy,
running an antiwar protest campaign, got 42% of the vote.
Please turn to the next page
Mr. Buchanan, a former presidential candidate, served
as an aide to Richard Nixon from January 1966 to
August 1974. His books “The Greatest Comeback” and
“Nixon’s White House Wars” describe those years.
INSIDE
MIND & MATTER
New research reveals the
messages in smiles. Some aren’t
friendly, says Susan Pinker.
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ESSAY
Small business doesn’t deserve
government support. It’s time
for a size-neutral approach.
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Chef David Chang on blended
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a quest for the perfect taco.
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How the oil-rich de Menils
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world capital of art.
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Blossoms and bloodshed:
Amanda Foreman on spring
as the season of war.
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THE WALL STREET JOURNAL.
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REVIEW
The weeklong rampage feat that night.
caused a backlash across
A week later, I was awakened at 3 a.m. by
Middle America, and Wal- Jeff Bell, a young aide at Nixon’s campaign oflace’s
poll
numbers fice. Bobby had been shot in a Los Angeles hovaulted. Support for tel kitchen after winning the California priNixon, who went to At- mary. Vice President Hubert Humphrey, the
lanta for King’s funeral, favorite after LBJ stood down, was now assank.
sured of the nomination.
As the race riots
The surging antiwar movement was demorburned out, the worst alized, bitter and angry. Humphrey was seen as
campus riot of the decade a Johnson lackey who would continue the war.
erupted. At my alma Then, just days after Bobby was
mater, Columbia Univer- buried beside JFK at Arlington,
sity, student radicals oc- Earl Warren resigned as chief
cupied Low Library and justice, and LBJ named his old
Hamilton Hall. They ran- crony Justice Abe Fortas to resacked professors’ offices place him. All three wanted to
and took a dean hostage. prevent a President Nixon from
After a week, the NYPD, naming the next chief justice.
THE AUTHOR flies with candidate Nixon during the presidential
with clubs and sweeping Senate Republicans aborted the
campaign in September 1968.
arrests, recaptured the insiders’ deal and rejected Foruniversity. Nixon declared tas. The Supreme Court wars that would enContinued from the prior page
the uprising “the first major skirmish in a rev- dure into the 21st century had begun.
Lyndon Johnson won with 49%, though his olutionary struggle to seize the universities of
One week before the Democratic convention
name was not on the ballot. Inexplicably, the this country and transform them into sanctu- in Chicago, the Soviet Union sent hundreds of
president of the United States had run as a aries for radicals and vehicles for revolution- Warsaw Pact tanks and 250,000 troops into
write-in candidate.
ary political and social goals.”
Czechoslovakia to crush the Prague Spring. As
Half the McCarthy voters were later identiRockefeller denounced Nixon, reversed him- with the seizure of the Pueblo, President Johnfied as pro-war but fed up with LBJ’s indeci- self and entered the race. But polls showed son, with a half million U.S. troops now in
sive leadership. In January, North Korean com- that America’s patience with radicalism was Vietnam, did nothing.
mandos had assaulted the Blue House in Seoul exhausted. The country was with the cops
The stage was set for an explosive Demoand come close to assassinating President Park wielding the clubs. Nixon had captured the cratic convention in Chicago. I asked Nixon to
Chung-hee, and the U.S. spy ship Pueblo had law-and-order issue. When the Kerner Com- send me. He agreed. Our listening post was on
been hijacked and its crew taken hostage by mission, set up to study the causes of the the 19th floor of the “Comrade Hilton.” I was
North Korean gunboats. Johnson had done
nothing.
The press read into the McCarthy vote
a repudiation of the war, and Johnson was
now wounded. On March 16, Sen. Robert
Kennedy leapt into the race. Speaking a
week later in Los Angeles, he stuck the
knife deep into his old antagonist, accusing President Johnson of “calling upon the
darker impulses of the American spirit.”
On March 21, Gov. Nelson Rockefeller of
New York stunned the political world by
declaring that he would not challenge
Nixon. The anticipated battle inside the
Republican Party seemed suddenly settled,
just as a three-sided war broke out inside
the Democratic Party. Alabama’s Gov.
George Wallace had announced he would
run as a third-party candidate in the fall,
while Kennedy and McCarthy battled for
the nomination as they assaulted their
own president.
The Tet Offensive proved a strategic disaster for the Viet Cong, who suffered
tens of thousands of dead. But U.S. media
portrayed Tet as an American defeat. On
“The CBS Evening News,” Walter Cronkite
A DIVIDED Democratic convention nominated Hubert Humphrey, who hadn’t run in the primaries.
declared Vietnam a “stalemate.”
Nixon moved to update his position. As
his writers Ray Price, Dick Whalen and I ar- weeklong Newark and Detroit riots in the alone in the suite one night when Norman
gued in front of him at his Fifth Avenue apart- “long hot summer” of 1967, blamed “white rac- Mailer walked in with the light-heavyweight
ment in New York on March 30, we got a call ism,” Nixon dismissed the report by saying it champion Jose Torres. As we talked, a commofrom our media folks: LBJ had asked to speak blamed everyone for the riots but the rioters tion erupted outside. A phalanx of cops had
in prime time that Sunday night. Nixon can- themselves.
marched up Balbo Drive to Michigan Avenue
celed his prepared speech and, leaving for a
As the Democratic showdown approached in and halted. Suddenly, the cops took off into
Wisconsin event, told me to be at the private the Oregon primary, the media zeroed in on Grant Park, clubbing the radicals and dragging
terminal at La Guardia Sunday to brief him on the revelation that, as attorney general, Ken- them to patrol wagons. Mailer and I saw it all
LBJ’s address to the nation.
nedy had authorized J. Edgar Hoover to wire- from our 19th-floor window. On and on it
As Johnson was announcing that he would tap the now-martyred Martin Luther King Jr. went, as Torres cursed the cops and I stayed
not run, Nixon’s private jet was landing. I The explosive charge led to Kennedy’s defeat mute. I had been down there at night among
reached the airplane door ahead of the press by McCarthy on May 28.
the protesters, who were as ugly a crowd as I
and told him what LBJ had said. Nixon stepped
I was at Portland’s Benson Hotel that night had seen in the Vietnam era.
out into the cameras to declare 1968 “the year with Nixon, who had won 70% of the primary
When Humphrey left Chicago, the Demoof the dropout.”
vote, crushing both Rockefeller and Reagan. cratic coalition that had given LBJ a historic
Four days later, the nation was stunned Later in the evening, I was standing in front of landslide in 1964 was shattered. Wallace
again. Martin Luther King, Jr., in Memphis to the hotel when Bobby Kennedy arrived to con- seemed certain to shear off the electoral votes
support a strike by garbage workers, had been cede defeat in the first loss by a Kennedy since of the Deep South. The McCarthy-Kennedy
assassinated on a motel balcony. A hundred JFK entered politics in 1946. Though Bobby wing was enraged over how Mayor Richard DaU.S. cities exploded in rioting, looting and ar- had a reputation for being ruthless, he could ley’s cops had beaten the protesters. The nation
son. The National Guard was out everywhere. not have been more gracious in conceding de- had seen a convention where Democratic dele-
gates cursed one another on the floor as their
partisans brawled with police in the streets.
I came back from Chicago and told Nixon
that we should side with Daley and the cops.
Nixon’s first campaign stop that fall was a motorcade through downtown Chicago, where
huge crowds cheered him.
The Gallup poll in September had Nixon at
43, Humphrey at 28, Wallace at 21. At every
campaign stop, Humphrey was shouted down
with chants of “Dump the Hump!”, until he
came close to breaking down,
denouncing his tormentors as
“fascists.”
Desperate, Humphrey rolled
the dice on Sept. 30 and
pledged to halt all U.S. bombing
of North Vietnam. The impact
was immediate. The heckling
and abuse subsided. He began a
steady ascent in the polls. His
optimism returned, and he staged one of the
great comebacks in presidential politics.
Then he caught a break. On Oct. 3, Wallace
introduced his running mate, Gen. Curtis
LeMay, who had led the firebombing of Tokyo
and who told a stunned press that we Americans have “a phobia about nuclear weapons.”
To achieve victory in Vietnam, LeMay said, “I
would use anything…including nuclear weapons.” Wallace’s voters began to abandon him
and move back home to the Democratic Party.
The election ended in a virtual tie, with
both candidates receiving roughly 43% of the
popular vote. But Nixon had won in the
electoral college and was now presidentelect of the United States.
What had 1968 wrought?
The American establishment, “the best
and the brightest,” had been broken on
the wheel of Vietnam. Liberal elites would
move to ally themselves with the antiwar
left and to denounce as “Nixon’s war” the
cause into which they themselves had led
the country.
The Cold War consensus that had existed from the Berlin blockade of 1948
through the Cuban missile crisis was no
more. The Democratic candidate in 1972
would run on the slogan “Come home,
America!” Foreign policy leadership
passed from the party of Truman and Kennedy to the party of Nixon and Reagan. After 1968, the word “victory” was rarely
heard. The goal now in Vietnam was
“peace with honor” or “an end to the war.”
Massive civil disobedience and violent
protests would become the new normal.
Failed and frustrated extremists would
turn to bombings and terrorism. Nixon
and Vice President Spiro Agnew would use
the radical left and its media enablers as
foils to drive a wedge right through FDR’s
Democratic coalition, with Nixon calling out
his “Great Silent Majority” and Agnew tabling
the issue of press power and media bias.
Nixon would be re-elected in 1972 in a 49state landslide. In four of the five presidential
elections after 1968, Nixon’s new majority
would crush the Democratic Party. By 1970, six
years after Goldwater’s defeat, twice as many
Americans would call themselves conservatives
as liberals.
As the political wars of 1968 turned American politics upside down, a cultural war had
broken out as well. Moral and social issues—
abortion, affirmative action, busing, crime,
drugs, feminism, gay rights—would tear apart
families, communities and the entire nation.
The culture wars had begun.
We are another country now, another people. The unity we knew in the Eisenhower-Kennedy era is gone. 1968 was the great divide.
1968 was the turning point.
ASSOCIATED PRESS
The Cold War
consensus
since 1948
was no more.
WHEN WOMEN’S EMPOWERMENT WORE A GO-GO SKIRT
BY MARC MYERS
FIFTY YEARS AGO, between the Beatles’ arrival in New York in 1964 and the coalescing of
the women’s liberation movement in 1968, go-go
dancing transfixed the nation, influencing music, television, fashion and advertising. Unlike
Beatlemania, which captivated screaming adolescents, the go-go craze was driven by young
adults who liked to dance and
were old enough to drink.
The go-go trend dates back
to Paris in 1963, when Elmer
Valentine, a Los Angeles restaurant owner, visited a Left Bank
discotheque. Once back in L.A.,
he sold his eatery and used the
proceeds to lease and renovate
space on the Sunset Strip. He
named the club after the Paris nightspot—
Whisky à Go Go. It opened on Jan. 15, 1964.
To attract a young crowd, Valentine immediately signed the soulful rock singer Johnny Rivers to a year-long performance contract. He
also had a female DJ spin records between Rivers’s live sets to provide continuous music and
keep couples dancing and in the club.
His first DJ was the club’s cigarette girl,
Patty Brockhurst. One night, after she put on a
record in the glass DJ booth, Ms. Brockhurst
began to dance provocatively in place. Club-goers below watched in awe.
The dancing DJ was such a hit that Valentine hired additional women to dance in glass
booths above the dance floor. One of the dancers, Joanie Labine, designed an outfit for her-
self and the other go-go dancers—a
fringed top and mini skirt with white patent-leather boots.
Within days, the club was jammed.
Dancing couples moved independently of
each other, blending elements of the frug,
the watusi, the skate, the boogaloo and
other seductive freestyle dances.
“Discotheque dancing freed women to
dance on their own without following a
male lead—or worrying
about wandering hands,”
said Gloria Steinem, the
feminist writer and cofounder of Ms. magazine.
“You could dance and express yourself, without caring about who was leading
or who was watching—
which was empowering.”
At the Whisky, go-go dancing not only
leveled the sexual playing field but tilted
it slightly in women’s favor. Women could
dance alone or with female friends.
Word traveled fast. By the spring of
DANCING at L.A.’s Whisky à Go Go, Sept. 1964.
1964, the club had become a full-blown
scene, with young movie stars and recording artists mingling with models and danc- ens of recording artists released singles with
ers. Even the Beatles showed up that August. thrusting go-go beats. In 1965, these included
Before long, the paparazzi turned the the Miracles’ “Going to a Go Go,” the Rolling
Whisky into an epicenter of cool. That fall, the Stones’ “Get Off of My Cloud” and Martha
go-go concept was copied by dance clubs Reeves and the Vandellas’ “Nowhere to Run.”
That same year, go-go dancing leap-frogged
across the country. Then the jukebox industry
took notice and in 1965 introduced machines from the discotheque to the first Beatles conwith more powerful speakers, marketing them cert at Shea Stadium and to TV shows such as
to smaller clubs that didn’t have room for DJs. “Shindig!,” “Hullabaloo” and “Hollywood a GoAs clubs and go-go jukeboxes caught on, doz- Go.”
A craze that
degenerated
into a sexist
punch line.
JULIAN WASSER/THE LIFE IMAGES COLLECTION/GETTY IMAGES
COURTESY NIXON PRESIDENTIAL LIBRARY
The Year America Came Apart
“Go-go dancing initially allowed young
women to rebel against the repressive ‘bad
girl–good girl’ double standard of the
1950s,” said historian Stephanie Coontz, the
author of books on women of the era. “They
could dance exuberantly and show off their
sexuality without having to ‘put out.’”
By 1967, go-go dancers became a way for
TV variety shows to lure male viewers. But
the women were increasingly objectified.
White-booted dancers were routinely parodied as dim and used as sexist punch lines
by male hosts
Finally, in 1968, the go-go craze fizzled.
The Vietnam War had drained clubs of
draft-age men, and many young women began to think differently about themselves
and their roles and rights. Go-go dancing
lost much of its original allure as it was absorbed by commercial culture.
But the go-go look didn’t fade with the
fad. In the early ’70s, miniskirts and white
boots became de rigueur for young flight attendants employed by airlines such as
Southwest and PSA.
“I remember flying National in the early
’70s when they had that horrible ad campaign where flight attendants wore buttons that
featured their first names followed by ‘Fly Me,’”
said Ms. Steinem. “One day, I boarded a flight
and saw an attendant wearing a button that
said, “I’m Mary. Fly Yourself.’ I thought,
‘Hmmm, maybe we’re getting somewhere.’ ”
Mr. Myers, a frequent arts and culture contributor to the Journal, is the author of
“Anatomy of a Song” (Grove).
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | C3
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RYAN GARCIA
REVIEW
Stop Propping Up
Small Business
Government aid for firms with few employees has long enjoyed
bipartisan support, but it’s bad economics and bad policy
BY ROBERT D. ATKINSON
AND MICHAEL LIND
IN OUR AGE of political polarization,
the right, left and center agree on
one thing: Big business is wicked, and
small business is noble. President
Donald Trump has declared: “We’re
going to create an environment for
small business like we haven’t had in
many, many decades!” His enthusiasm echoes his predecessor, President Barack Obama, who claimed that
“small businesses are the backbone of
our economy and the cornerstones of
America’s promise.” Indeed, politicians and pundits of every stripe argue that we can solve a host of problems, from creating jobs to boosting
productivity to unleashing innovation, with hefty doses of the same
miracle cure: aid to small business.
But this alleged miracle cure is really snake oil. That is because, compared to large firms, small firms pay
lower wages and provide fewer benefits, injure and lay off their workers
more frequently, spend less to protect
the environment, are less productive
and less innovative, and create a
smaller share of net new jobs.
After World War II, as big firms
emerged in industry after industry
(hotels, banks, restaurants, retail),
small firms began to cast themselves
as victims and to ask public officials
for relief. In 1953, Congress established the Small Business Administration to “aid, counsel, assist and
protect, insofar as is possible, the interests of small business concerns.”
But fairness was a relatively weak
reed on which to build an elaborately discriminatory economic policy. What was needed was a positive
rationale for giving preferential
treatment to small businesses.
Job creation became the new
banner. Economist David Birch of
the Massachusetts Institute of Technology claimed in the late 1970s—
inaccurately, as it turned out—that
small businesses were the jobs engine of the economy, which allowed
advocates to argue that aid to small
businesses was a driver of economic
growth. This narrative was reinforced by the wave of startups in
the tech sector in the 1980s and
1990s. By 2000, all new businesses,
no matter how technologically prim-
itive or undercapitalized, were being
called startups. A new biotech company was a startup, but so was a
new three-person lawn-mowing
business. Only child-labor laws prevented lemonade stands from being
classified as startups, too.
A 2010 study published by the National
Bureau of Economic
Research showed, however, that it is the age
of a firm, not its size,
that matters for job
creation. Just as children grow faster than
adults, young firms
grow faster than mature ones.
Over the decades, lawmakers
have conferred an array of valuable
benefits and exemptions on small
firms. In the years since the SBA’s
founding, Congress has passed at
least 68 pieces of legislation explicitly favoring small business, including the Small Business Prepayment
Penalty Relief Act of 1994, the Small
Business Job Protection Act of 1996
and the SEC Small Business Advocate Act of 2016.
As a result, firms
with fewer than 11
employees are exempt
from most workplace
safety requirements.
The Family and Medical Leave Act does not
apply to small firms,
and many civil rights
laws contain exemptions for small firms.
A firm with fewer
than 20 employees
can legally discriminate against workers
on the basis of age; if
it has fewer than 15
employees, it can discriminate
against
qualified individuals
with disabilities. Only
federal contractors
with 50 or more workers are required to
use affirmative action
plans when hiring.
The tax code also
lavishes benefits on
small firms. Profits
from publicly traded
companies (most of
which are large) are
typically taxed twice,
once at the corporate
level and again when
shareholders accrue
capital gains or dividends. By contrast,
pass-through firms
such as sole proprietorships,
partnerships and LLCs—the
lion’s share of which
are small—are taxed
only once, on the owners’ incomes.
In addition, many
tax incentives either
apply only to small
firms or are more generous for small
firms, including (at least before recent tax-reform legislation) the ability to expense investments in new
equipment, exemptions from imputed
interest obligations, completed-contract rules, expensing of agricultural
costs and a host of others.
To give small businesses a leg up,
federal agencies are required to buy
goods and services from them even
when their prices are higher. Federal
agencies also provide a variety of
special subsidies to small firms.
Small firms get discounts when buying rights to use the radio spectrum
and pay lower patent fees. And they
get cut-rate financing, too. In 2016,
the SBA supported loans to small
businesses across the nation: $105
million for car dealers, $118 million
for residential building
construction, $312 million for liquor stores,
$742 million for gas
stations and $760 million for dentists.
Advocates for small
businesses often argue
that such firms deserve special breaks
because it is harder for
them to bear the costs
of complying with government regulation. After all, every firm must devote time and resources to filling out
a given form, and big firms have the
advantage of spreading those costs
over a larger business. There’s some
validity to this point.
But most special favors for small
businesses—lower tax rates, tax incentives, direct subsidies, cheap financing—have nothing to do with
their difficulty in coping with regu-
It’s time to
get rid of
privileges
based on a
firm’s size.
lation. And requiring small firms not
to discriminate on the basis of age,
gender, race or religion imposes no
special regulatory burden.
Some regulations do, in fact, create a competitive disadvantage for
small firms. But why shouldn’t big
firms enjoy lower costs from economies of scale in complying with regulations? If small businesses cannot
handle the costs of regulation—or
any other business cost for that matter—they must choose between
growing to a more efficient size or
losing market share.
Government at every level can
certainly do more to eliminate unnecessary regulations and to streamline those regulations that serve crucial public ends. But such reforms
should benefit all businesses, regardless of size.
Don’t all the breaks for small businesses at least help “the little guy”?
No, in fact, they go mostly to the
wealthy. In 2016, according to the
nonpartisan Tax Policy Center, the
top 1% of pass-through businesses
earned 50.8% of the income for such
firms. A mere 13.4% of all passthrough income went to the bottom
60%. A 2015 study by the Federal Reserve Bank of New York concluded,
“More wealthy individuals are smallbusiness owners than poor individuals. The subsidy on small-business
ownership just transfers resources to
the wealthy from the poor.”
Beyond the injustice of it, smallbusiness favoritism reverberates
throughout the economy, slowing
growth in two ways. First, subsidies
and other size-based industrial policies slow productivity growth by enabling less efficient small firms to
gain more market share than would
otherwise be the case. Second, discriminatory policies provide an incentive for small firms to remain
small. Why add five more workers
when doing so would subject you to
a host of new regulations and restrict
your access to government handouts?
Today, with the U.S. economy facing intense global economic competition and suffering from stagnant productivity and sluggish wage growth,
we can no longer afford the luxury of
tilting the economic playing field toward small business owners. To end
the misallocation of resources caused
by small-business cronyism, public
policy should be guided by the principle of size neutrality. Policymakers
should repeal virtually all special
preferences for small business in the
tax code and in government procurement policy and eliminate targeted
subsidies, regulatory exemptions and
exemptions from civil rights laws.
Will size-neutral policies result
in fewer small businesses? In cases
where small firms can’t live without
special treatment, we hope so. Consumer demand suggests that a similar number of jobs is likely to be
created in the same sectors by
fewer but larger and more productive firms.
Heaping praise on small business
may garner applause from the peanut gallery, but showering privileges on firms because of their size
is bad economics and bad policy.
Mr. Atkinson is the president of the
Information Technology and Innovation Foundation. Mr. Lind is a
visiting professor at the University
of Texas Johnson School of Public
Affairs. This essay is adapted from
their new book, “Big Is Beautiful:
Debunking the Myth of Small Business,” published by the MIT Press.
MIND & MATTER: SUSAN PINKER
SMILE while your heart is breaking,
put on a happy face, say cheese.
We’re so used to smiling on demand that to do otherwise can
seem antisocial. Even going through
the motions of a smile, scientists
have found, can make us feel happy.
But smiles take many forms, and
not all of them sound a
single, upbeat note. According to recent research, smiles are more
like Morse code, silently broadcasting distinct, nuanced messages. A smile might be
signaling “Do that
again” (reward), “I
want to get along with you” (affiliation) or “I’m No. 1 around here”
(dominance). Most of us receive
these nonverbal signals loud and
clear; they register in the chemical
cocktail infusing our saliva and the
thrum of our heartbeat, says a
study published last month in the
journal Scientific Reports.
“Different smiles have different
impacts on people’s bodies,” said
Jared D. Martin, a doctoral student
who led the study in the lab of
University of Wisconsin psychology professor Paula Niedenthal,
working in collaboration with Eva
Gilboa-Schechtman of Israel’s BarIlan University. Along with poker
players, psychologists
have long known that
our facial expressions
can betray our emotions. But no one has
demonstrated exactly
how this works, Mr.
Martin said.
To explore whether
certain types of smiles
provoke distinct physiological responses, Mr. Martin’s team set up
an experiment based on public
speaking. Research shows that most
people would rather get zapped
with an electric shock than give a
five-minute speech about themselves. It’s a handy way to examine
how our bodies register stress. So
in this experiment, 90 healthy male
Signs of
affiliation,
reward or
dominance.
undergraduate students delivered
three spontaneous speeches about
themselves, each to an audience of
one. The listener smiled away on
Skype while they were talking.
That listener was supposedly chosen randomly but
in reality was a plant
trained to smile in one of
three ways during the other’s
short spiels: to
signal reward, affiliation or
dominance.
The dominance smile is
mildly lopsided, with
closed lips and one or
both eyes squeezed
shut, whereas reward
smiles show upturned
lips exposing a row of
teeth and crinkled eyes.
Affiliation smiles feature pursed
lips, the whites of the eyes and
raised eyebrows.
The research team measured the
impact of these three types of
smiles by continuously monitoring
the speaker’s heart rate and periodically assessing his salivary levels of
cortisol, a hormone often used as
a marker of stress.
The researchers found
that there was eight times
as much cortisol in the saliva of students facing a dominance smile as
in those facing affiliative smiles
and 16 times
as much as in
those facing
reward smiles.
There were also intriguing differences in
how people reacted to
the different smiles.
“Your heart doesn’t
beat like a metronome,” Mr. Martin said, and “people
with higher variability in their resting heart rate had more extreme
cortisol responses to dominance
smiles.” These new results are in
line with a 2017 German study
showing that people with morevariable heart rates are much better
at reading others’ mental states in
their facial expressions—what psychologists call mind-reading.
The current study tells us that
the people with higher heart-rate
variability are not only more
stressed out by dominance but
also more comforted by affiliative
smiles. “They’re more attuned,”
said Mr. Martin.
The study was on the small
side, the subjects restricted to
men, and each student received
just one type of smile, so the experimenters couldn’t compare how
a particular student would respond to different expressions.
But the study helps us to understand the arcane signals exchanged
by our intensely social species. The
sense of how others view us is read
not just by the head but by the hormones coursing through our bodies
and the rhythm of our hearts.
TOMASZ WALENTA
A Smile’s Many Messages—Some Unfriendly
.
C4 | Saturday/Sunday, April 7 - 8, 2018
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THOMAS MARENT / MINDEN PICTURES
‘Caravan’
Rides Into
Border Battle
PANDAS ARE NOT the hippie vegetarians of the ursine kingdom, as we tend to think of them. Like most bears, they are opportunistic omnivores.
THE UN-CUDDLY TRUTH ABOUT
Bronx Zoo’s “breeding pair,” which arrived to
much fanfare in 1941. Pan-dee and Pan-dah
were not a little boy and girl but two females.
In the days before genetic testing, sexing pandas proved to be a notoriously difficult art,
since the panda penis is virtually indistinguishable from female genitalia.
Breeding animals in captivity is rarely easy.
A concrete enclosure is not a sexy place for a
wild creature. As with most animals, the desire
of pandas to procreate is stimulated by a complex set of cues—the animal equivalent of a nice
glass of wine and a bit of Barry White. In zoos,
two pandas are expected to mate in isolation.
But pandas are anything but loners when it
comes to sex in their natural habitat.
able big round head, evolved to force their
BY LUCY COOKE
Pandas occupy territories of up to 4 square
way through bamboo’s tough sheath; the
miles, and they sniff out sexual opportunities
strength of their bite is somewhere between
THE PANDA is often considered a joke of a
by leaving scented status updates advertising
that of a lion and a jaguar. In 2008, a tourist
bear. “Pandas are bad at sex and picky about
their identity, sex, age and fertility on specially
required 45 stitches to her hand after trying to
food,” jeered the Economist in 2014. “These
designated trees—the panda equivalent of Tinpet a panda at a sanctuary near Xian in China.
genetic misfits might have died out long ago,
der. When a female comes into season, she rubs
An elderly Chinese man whose leg was ravaged
had they not been so adorable.” Without our
her scent on one of these communal message
by a wild panda near the Baishuijiang National
help, so the narrative goes, pandas surely
boards, attracting males who then compete for
Nature Reserve in 2014 was hospitalized for
would have joined the dinosaurs and the dodo
her affections in a sort of urinary Olympics. Femore than 50 days.
on evolution’s scrap heap.
male pandas prefer the males that
Or would they?
leave their scent marks the highest up
The image of the pathetic panda—
a tree. Scientists have described
a benign, bungling creature who
males adopting various athletic
needs human help to survive—is a
poses—“squat,” “legcock” and, most
very modern myth, conjured more
remarkably, “handstand”—in order to
from human desires than from biosquirt their pee as high as possible.
logical facts. The panda is, in fact, a
The winning male celebrates his
splendid survivor. It has been around
victory by having sex over 40 times
for some 18 million years (three
in a single afternoon. Panda sex itself
times longer than we hominins) and
is a rough-and-tumble affair with
is perfectly adapted to its admittedly
plenty of biting and barking. Male
eccentric lifestyle.
pandas are incredibly potent: The seThe real panda is a secret stud,
men of the giant panda contains 10
with a taste for flesh and a fearsome
to 100 times more sperm than a hubite, at least in its natural habitat. But
man male. The female’s short fertilthat habitat is withering thanks to
ity window—under two days each
human encroachment. Once a wide
year—may even be an evolutionary
swath of southeast China and borderadaptation to control population
ing nations, panda country is now a
size, precisely because male pandas
patchy strip, mostly through the forare so accomplished at procreating.
ests of just two mountain ranges.
In recent years, the Chinese have
The most recent Chinese census
achieved a high success rate in
of wild pandas, conducted in 2015,
breeding pandas in captivity, primarput the total number at 1,864—up
ily through artificial insemination.
by a few hundred from previous
These “panda mills” are no conservacounts and enough to officially
tion success story, however. The
THREE-MONTH-OLD Xing Bao is displayed at Madrid’s zoo
downgrade the animal from “endanblack-and-white balls of fluff might
in 2013.
gered” to “vulnerable”—a move critlook like pandas, but raised as they
icized by many respected panda
are in a man-made environment,
conservationists who don’t believe the optithey don’t grow up to behave like pandas. In
We like to think of pandas as the hippie
mistic figures. Meanwhile, the captive panda
2007, a young male named Xiang Xiang, Chivegetarians of the ursine kingdom. But like
population has more than doubled since 2005
nese for “lucky,” became the first captive-bred
most bears, they are opportunistic omnivores.
to over 500 in 20 countries. Our image of
panda to be released in his natural habitat. He
The panda dines almost exclusively on bampandas has been formed primarily by these
was savaged to death by wild pandas.
boo, but it hasn’t lost its taste for flesh. When
zoo ambassadors, which have become a carThough the captive panda population is
the eminent field biologist George Schaller
toon of our own creation.
booming, their natural habitat is under severe
studied pandas in the wild
We have misunderstood
pressure. China has set aside 67 panda reserves,
in the 1980s, he found that
pandas in large part because
but commercial logging, tourism and agriculthe best way to attract them
they are so ridiculously cute.
ture continue in these “protected” areas. A 2017
was to bait their traps with
Humans are preprogrammed
study found that, despite conservation efforts,
goat meat. I’ve seen footage
to want to nurture anything
panda habitat covered less area and was more
of a wild panda chowing
with baby-like features—
fragmented in 2013 than in 1988, when the spedown on a dead deer.
namely, a big bulging forecies was first listed as endangered. Current
“Panda eats Bambi” is dehead, large, low-set eyes and
populations are divided into 30 isolated groups,
cidedly not a Disney feature.
round cheeks. It’s a neurowith 18 of them comprising less than 10 individIt is the giant panda’s
chemical insurance policy to
uals and facing a high risk of extinction.
sexual appetite that is the
ensure that we take good
The real threat to pandas isn’t their incommost misconstrued, thanks
care of our unusually vulnerable offspring.
petence but our mythology. We have bought
to the parade of pandas parachuted into forWith their unique markings and decidedly
into the narrative that the only way to save
eign zoos over the last half-century. There,
humanlike way of sitting and eating, pandas
them is for humans to take control. Instead
thanks to us, they’ve acted out a sexual farce
could have been genetically engineered as the
the reverse is true: We need to let the pandas
worthy of a 1970s sitcom.
perfect trigger for this nurturing instinct. They
take care of themselves, something they can
The first pandas landed in the U.S. just beset off our brain’s reward center, the same part
only do if we leave them with enough forest to
fore World War II. First came a roly-poly baby
that responds to sex and drugs. Baby pandas
live their secretly sexy lives.
named Su-Lin, meaning “a little bit of someare basically cuteness crack.
thing cute,” then Mei-Mei, her “little sister,”
This essay is adapted from Ms. Cooke’s new
The problem with the cuddliness of pandas
and finally a potential beau named Mei Lan.
book, “The Truth About Animals: Stoned
is that it inclines us to infantilize them and to
But the pitter patter of tiny panda feet was
Sloths, Lovelorn Hippos and Other Tales
forget that they are bears—which can be dannot forthcoming, which was hardly surprising,
from the Wild Side of Wildlife,” which will
gerous. The powerful muscles in the panda’s
given that all three were male, the zoologists
be published on April 17 by Basic Books.
cheeks, which ironically give the bear its lovlater discovered. A similar fate befell the
Panda Lives
JAVIER SORIANO/AFP/GETTY IMAGES
In their shrinking natural habitat, the bears are tough,
sexually potent survivors, not the hapless
bunglers we have created as zoo attractions
For our brain’s
reward center,
baby pandas
are basically
cuteness crack.
EARLIER THIS WEEK, President
Donald Trump took to Twitter to
lash out about U.S.-Mexican border security, warning ominously
that “caravans” were coming. He
was alluding to media reports of a
large group of mostly Honduran
migrants who were making their
way across Mexico, some with the
goal of continuing on to the U.S.
This “caravan” was actually an
annual protest march organized by
the advocacy group Pueblos Sin
Fronteras (People Without Frontiers), seeking to draw attention to
the plight of Central American
asylum seekers. The caravan began to disband on Thursday, with
migrants dispersing into smaller
groups and seeking permission to
stay in Mexico.
This is only the latest twist on
a peripatetic word that has traveled through many lands and languages. “Caravan” ultimately goes
back to a Persian word, “karvan,”
for a group of travelers banding
together for a desert journey, typically using camels for transportation. (While some etymologists relate it to “karabhah,” a Sanskrit
name for a camel, the word likely
goes back to an Indo-European
root, “ker-,” meaning “army.”)
Resting places along a caravan
route were known as “caravanserais.”
From Persian the word passed
into Arabic, and it then moved
into medieval Latin at the time of
the Crusades. Scribes used the
word when recording an attack on
a Muslim caravan by the crusader
Raynald of Châtillon in 1187,
breaking a fragile truce with the
sultan Saladin. (The 2005 film
“Kingdom of Heaven” dramatized
From camels
to pilgrims to
protesters
the caravan raid.)
“Caravan” entered English via
French and Italian in the late 16th
century. The poet Willam Warner,
in verse detailing the journeys to
Russia by the explorer Anthony
Jenkinson, wrote of “merchants
traveling by caravan, that is, great
droves of laden camels.” The word
got applied to various traveling
groups such as pilgrims, and John
Milton even extended it into the
animal world in “Paradise Lost,”
describing birds that “set forth
their aery caravan, high over
seas.”
On the American frontier, “caravan” came to be used for groups
traveling with their pack animals
or wagons, often in a single-file
procession. The word also moved
in another direction as a name for
a type of horse-drawn carriage
that allowed people to travel together—a means of transportation
eventually shortened to “van.”
More recently, “caravan”—along
with its Spanish equivalent “caravana”—has been pressed into service in Latin American countries,
particularly Mexico, to describe a
kind of moving protest. In 2011,
for instance, a group known as the
Caravan of Central American
Mothers toured Mexico to bring
attention to migrants who had disappeared making their way to the
U.S. from Nicaragua, Honduras, El
Salvador and Guatemala. Along
with searching for lost relatives,
the group demanded action by the
Mexican government to protect
migrants from kidnapping and
other crimes.
Pueblos Sin Fronteras has likewise used the caravan model of
protest for several years to shine a
spotlight on migrants fleeing oppression from Central America,
but their cause went largely unnoticed in the U.S. before media accounts of this year’s caravan in
BuzzFeed and elsewhere. Now that
the word “caravan” has entered
Mr. Trump’s tweets, it promises to
be a contentious term in debates
about cracking down on illegal immigration.
Answers
to the News Quiz on page C13:
1.C, 2.A, 3.B, 4.D, 5.C, 6.B, 7.B,
8.D
.
T.E. LAWRENCE & HIS ALLIES C6 | SCIENCE, FAITH & ALAN LIGHTMAN C7 | SOME ‘SHARP’ WOMEN C9 | BEST SELLERS C10
© 2018 Dow Jones & Company. All Rights Reserved.
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THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | C5
American Medicis
A married team of aristocratic French immigrants turned Houston into a world capital of art
Double Vision
By William Middleton
Knopf, 760 pages, $40
WEALTH AND NOBILITY, appealing
though they may be, are seldom conducive to family unity. There are few
husband-and-wife teams in the arts
among the very rich, and even fewer
with aristocratic European backgrounds, who can lay claim to as
many accomplishments as Dominique
and Jean de Menil. In “Double
Vision,” a scrupulously detailed and
admiring biography, William Middleton chronicles the achievements of
this couple whose mission in life was
to share their passion for art. Their
joint view was that “the gifted artists
are the great benefactors of the
world.”
After emigrating to the U.S. in the
1940s, the de Menils spent their lives
nurturing artists and building an
immense collection of works, then a
museum in which to house them, then
university departments that would
foster a love of art, while making it
their business to build relationships
between artists and dealers, curators
and museum directors. They were
seen everywhere, in New York, London and Paris, as well as in their
adopted city of Houston. Wherever
and in whatever form the avant-garde
chose to appear, the de Menils followed, from French Impressionism
and Cubism to Abstract Expressionism to Pop Art and Minimalism. Their
benign enthusiasms were always
tempered by what the composer
Morton Feldman called Jean de
Menil’s “gentle radar for the unusual.
A crazy idea, a beautiful idea, an
irreverent or a religious idea, as long
as it had some ‘guts and personality’
behind it, got immediate attention.”
They were, as Mr. Middleton states,
“avatars” looking for innovation, if
not a social metamorphosis. Perhaps
a personal one, as well.
Dominique de Menil was born in
Paris in 1908. Her parents, Conrad
and Louise Schlumberger, owned a
château, the Val-Richer, in the rolling
Normandy countryside, and there she
grew up. One ancestor was François
Guizot, a politician, prime minister,
historian and author. After being
swept from power in the revolution of
1848, Guizot became even more famous as a writer and lecturer on
French history who taught Alexis de
Tocqueville.
MARC RIBOUD/MAGNUM PHOTOS
BY MERYLE SECREST
TO THE LEFT Dominique de Menil watching workers install Barnett Newman’s painting ‘Now II’ (1967) at the Menil Collection, 1986.
In the years around World War I,
Dominique’s father was experimenting
in the exciting new world of electricity
and came up with a brand-new application for it. Why not use electricity
to detect minerals underground, specifically formations associated with
oil? He rigged up a homemade detector, testing it with the large copper
baignoire in which Dominique was
bathed, and went to work. His achievement would revolutionize the world’s
oil industry and, incidentally, make
him and his heirs very, very rich.
As for his daughter, two anecdotes
illustrate her fearless, try-anything
attitude toward life and the leading
role she was destined to play. The
first finds her on a beach with some
playmates. Presumably they were all
getting bored; at any rate, Dominique
was dared to eat the little sand hoppers skittering across the beach
everywhere. She calmly popped them
into her mouth: “They tasted like
grasshoppers,” she recalled. Another
anecdote concerns the family car,
which had no headlights. One evening,
returning to the château, it was getting dark. Conrad lashed Dominique
to the front bumper with a lantern to
light the way ahead.
The Schlumbergers were committed Protestants in a Catholic country.
ted Catholics. They were also in financial difficulties as a result of the
depreciation of the franc that followed World War I. Mr. Middleton observes that within the French bourgeoisie daughters without dowries
The de Menils’ collecting was fueled by proceeds from
the oil business that Dominique’s father founded and
John joined. It was John who coined the company
slogan: ‘Wherever the drill goes, Schlumberger goes.’
The de Menils, whose military heritage stretched back to Napoleon, were
equally distinguished members of the
haute bourgeoisie. Dominique’s future
husband, Jean, who inherited the title
of baron, was the sixth of eight children of Col. Georges Menu de Menil
and his wife, Madeleine. The family
lived on the étage noble (second
floor) of an 18th-century mansion in
the rue de Vaugirard in Paris. The difference was that they were commit-
could not marry and impoverished
families lost social status along with
their bank accounts. Jean’s sisters had
to go to work in a factory. He, at least,
was hired as a clerk in a bank and
became known, if not for sartorial
flamboyance, at least for correctness.
No one ever saw Jean de Menil without a well-tailored jacket and pants,
let alone a tie.
Jean de Menil and Dominique
Schlumberger met at a ball in Ver-
sailles one evening in 1930 and were
at once attracted, Mr. Middleton tells
us; it was a “coup de foudre.” She
found his looks, his strength of personality and “sheer panache” irresistible. He felt the same about this
serious-minded girl with blond hair
and vivid blue eyes. They took long
drives around Paris and whispered in
the back seat while her 18-year-old
sister acted as their chauffeur, or they
wrote each other long, frank letters
about their inner thoughts.
That summer they met again for
mountain climbing in Chamonix, joining a party of friends and relatives.
Dominique arrived first. The day she
knew Jean was due to arrive she
spent the afternoon looking for him in
the town without success. In the early
evening she decided to take a hike
across the Mer de Glace, a famous
glacier. But the light was failing, the
safe path was becoming hard to find
and she was beginning to panic when
she suddenly saw him coming from
the opposite direction, looking for
Please turn to page C7
Blood Moon
By John Sedgwick
Simon & Schuster, 487 pages, $30
BY H.W. BRANDS
A FIRST LESSON of history, for anyone paying serious attention, is that
history is more complicated than you
think. This is true almost regardless
of how complicated you think it is; it’s
more complicated than that. Casual
visitors to the past often pose binary questions: Was the Civil War
about slavery or states’ rights?
Was the New Deal a good deal
or a bad deal? Was Richard
Nixon a conservative or a liberal? Such questions aren’t
worthless as discussion-provokers, but the correct answer
is always both. And when offered more than two choices,
the honest student of history
responds: All of the above.
The history of relations between the indigenous peoples
of North America and interlopers from Europe is more complicated than you think, as John
Sedgwick demonstrates in his engrossing book on the Cherokee,
“Blood Moon.” Actually, it’s more
complicated than he thinks, or at
least than he portrays it to be. This
isn’t his fault; a story has to start
somewhere, and it can’t move forward without omitting many details.
But even posing the conflict in terms
of indigenous peoples and interlopers
oversimplifies. Mr. Sedgwick likens
the Cherokee experience to the experience of all Americans of the era, in
that everyone had to adjust to changing times. But the Cherokee were different in one crucial respect, he says.
“The Cherokee were not emigrants;
they had been here all along.”
No, they hadn’t; and yes, they
were. The Cherokee were an offshoot
the English established Jamestown.
And when the Cherokee reached their
new home, they took the land from its
occupants by the same means American whites would employ against
them: force. The clash between the
Cherokee and the Scots-Irish who
formed the cutting edge of white
settlement in the 18th and 19th centuries was basically another round of
the tribal fighting that has marked
human history from its start. And it
was characterized by the complications exhibited in all such clashes.
When Indians and whites went to
war, only rarely did whites fight exclusively on one side and Indians on
the other. The French and Indian
on Mountaintops) and John Ross.
Each was of mixed ancestry, with The
Ridge looking more like his Cherokee
father than his Scots grandfather, and
Ross resembling the seven of his eight
great-grandparents who were white.
The Ridge never learned to speak
fluent English; Ross never mastered
Cherokee. For decades the two battled
One man fought to
save the tribe’s lands.
His rival felt they
had to sell them in
order to save the tribe.
John Ross
of the Iroquois people; they had migrated to what would become the
American Southeast from a region
farther north, not arriving until after
War wasn’t the French against the
Indians; it was the French and their
Indian allies against the British and
Americans and their Indian allies. This
mixing of sides would prove the rule.
George Custer counted Crows and
Arikaras as allies when he fought the
Sioux in the last major campaign of
the American West.
In the case of the Cherokee, it was
often difficult to tell who was white
and who Indian. Mr. Sedgwick deftly
hangs his tale on two remarkable individuals: The Ridge (He Who Walks
The Ridge
whites, collaborated with whites and
eventually fought against each other
for the future of the Cherokee nation.
The question that finally drove them
apart was the one that confronted
every Indian tribe sooner or later:
retreat in the face of white pressure,
or fight to the bitter end?
Mr. Sedgwick’s account is filled
with riveting, often gory details. He
describes a showdown between The
Ridge and an early rival for leadership
named Doublehead. “With a roar,
Doublehead closed on The Ridge, and
wrapped his meaty arms around him.
He pushed him backward onto the
floor, reaching with his good hand for
an eye to puncture, or flesh to claw,
lifting his knee into The Ridge hoping
to jam it into a soft place. Doublehead smeared The Ridge everywhere with his hot blood.” At the
critical moment an ally of The
Ridge came to his rescue. “Saunders tossed his gun aside, drew
back his tomahawk, and crashed
it down on Doublehead’s forehead. The blow struck straight
up from his nose, and split the
skull down the middle, releasing
a torrent of blood.”
The harrowing parts of the
story add not simply drama but
insight into the self-righteous attitudes both sides brought to their
struggle for the land. The Cherokee,
like other Indian tribes, understandably felt ill-used by the whites. The
federal and state governments bribed
Indian leaders to sign treaties surrendering tribal lands, despite knowing
that the chiefs in question couldn’t
bind whole tribes, given the dispersed nature of tribal governance.
When the Indians resisted, they were
often slaughtered.
Please turn to page C6
JOHN NEAGLE PHILBROOK/MUSEUM OF ART; GETTY IMAGES
The Cherokee vs. the Cherokee
.
C6 | Saturday/Sunday, April 7 - 8, 2018
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BOOKS
‘Do not try to do too much with your own hands. Better the Arabs do it tolerably than that you do it perfectly. It is their war, and you are to help them. ’ —T.E. Lawrence
Picking Sides in the Middle East
down the families of some of his subjects, most notably of Lt. Gray, a cipher officer. Gray’s daughter gave the
author access to a cache of documents, as well as to Arab robes and a
Turkish pistol given to her father by
Lawrence. She also supplied a quantity of photographs from the revolt,
many reproduced here for the first
time and providing rare glimpses
from the sidelines.
It is unfortunate that the author
devotes time and words trying to reduce Lawrence’s stature. Lawrence
stands out for several reasons. He
was unlike most British, American or
Behind the Lawrence Legend
By Philip Walker
Oxford, 284 pages, $34.95
BY ANTHONY SATTIN
British support for the
Arab Revolt included
cash, advice, soldiers and
£14,000 worth of camels.
COURTESY OF ANTHEA GRAY
ON JUNE 10, 1916, a 62-year-old Arab
by the name of Hussein bin Ali leaned
out of a window in his palace at
Mecca and fired a round from his
rifle. With Turkish forces occupying
what is now Syria, Lebanon, Jordan,
Iraq, Israel, Palestine and the whole
of the Arabian peninsula, shooting
into the air might have seemed futile.
But Hussein was the head of the Hashemite clan, keeper of Islam’s holy
places and a man with good claim to
the title of caliph, leader of Muslims.
His shot launched the Arab Revolt
against Turkish occupation, as well as
a debate among historians and observers of the Arab world that continues to this day.
The revolt—the uprising of tribes
on the Arabian peninsula against
Ottoman occupation—would lead,
with outside help and a hoard of
British gold, to the reshaping of the
Middle East. It would also redefine
relations between Arabs and the
British and French, in part because,
unknown to the Arabs who thought
they were fighting for their independence, the latter two had reached a
secret agreement for the postwar
division of the Turkish provinces.
The centenary of the outbreak, in
2016, was marked by the publication
of a number of books with an image
of T.E. Lawrence on the cover, usually
in native robes, often riding a camel.
The reason is obvious: Of all the characters who took part in the revolt,
only “Lawrence of Arabia” now has
any name recognition outside of
specialist circles, although in the Arab
world Hussein’s son Faisal, later king
of Iraq, is still revered.
But we live in an age of revision in
which many assumptions behind the
history that we were taught and told
from school onward are being challenged or overturned. Lawrence has
not escaped this trend. Among recent
books, Scott Anderson’s “Lawrence in
Arabia” puts Lawrence’s story into
the context of other agents—German,
American and Zionist—who were
active at the same time in the Hejaz.
In “Faisal I of Iraq,” Ali Allawi uses
Arab and Turkish sources to tell the
king’s story from the “other” (i.e.,
Arab) side and the result is indeed a
“reassessment”: In Mr. Allawi’s telling, neither Lawrence nor his European colleagues had much influence
over the man or the revolt.
Philip Walker’s first book, “Behind
the Lawrence Legend,” promises a
“fresh interpretation” on the Arab
Revolt, one that will “set the record
straight.” If your understanding of
the uprising goes no further than
David Lean’s classic movie “Lawrence
of Arabia,” you might think there
END OF THE BEGINNING A photo by Lt. Lionel Gray of Arabs in Jeddah celebrating with a captured Ottoman flag, 1918.
was very little British, French or
American involvement in the campaign beyond Lawrence going native.
But this was obviously not the case.
Lawrence’s own published account,
the extraordinarily passionate and
evocative “Seven Pillars of Wisdom”
(1926), names hundreds of colleagues
who fought alongside the Arabs or
provided logistical support. They
ranged from the eccentric diplomat
Ronald Storrs, “the most brilliant
Englishman in the Near East,” and
the traditionalist Col. Cyril Wilson, a
leader “of the honest, downright
Englishmen,” to 40 others who
“could each tell a like tale.” Lawrence’s version of the tale also lists
those who served with the Hejaz
Armoured Car Company and the 10pounder Talbot Battery.
Mr. Walker has taken for his subject the exploits and opinions of some
of the less known British servicemen
involved in launching and sustaining
the Arab Revolt. They include Capt.
Thomas Goodchild, an “amiable” veterinary officer tasked with acquiring
herds of camels, which he procured,
Mr. Walker writes, with “£14,000 in
gold and silver coins.” This purchase
was necessary in part to provide
transport for the Imperial Camel
Corps, who used them to advance on
Jerusalem but also to keep them
away from the Turks. Four of Mr.
Walker’s subjects were based in the
Red Sea port of Jeddah (Jidda), in
the western region of the Arabian
peninsula known as the Hejaz. Col.
John Bassett, Col. Hugh Pearson and
Lt. Lionel Gray all served with Wilson
and fulfilled crucial duties.
These and most of the other characters here have appeared in histories and biographies of the period,
including Jeremy Wilson’s 1989
authorized biography of Lawrence.
But Mr. Walker, a British retired
archaeologist, is right in claiming
that most have fallen through the
cracks and he does a good job at
bringing them back toward the light,
providing focus and detail, the latter
being the result of extensive research
in libraries on several continents and
over many years. He has also tracked
French officers active in Arabia at
that time for he had already spent
four years working as an archaeologist on what is now the TurkishSyrian border, had traveled widely on
foot through the Levant and had
acquired a deep understanding and
affection for the people of the region
and their way of life.
While Col. Wilson in Jeddah objected to the idea of wearing an Arab
headdress, Lawrence wore his full
robes with some pride, even during
the postwar conference. Lawrence
spoke Arabic (although, it seems, not
brilliantly), understood tribal mentality and felt more of a kinship with
Arabs than he did with many Westerners. On occasions Mr. Walker questions the accuracy of “Seven Pillars,”
as if he did not know that it was created mostly from memory and written
at great speed by a man who was
suffering from a severe case of what
we know as post traumatic stress
disorder. Lawrence was a “master of
half-truths, denigration by inference
and omission,” he stresses, and the
book “has sometimes given rise to
confusion and red herrings—
Lawrence’s favourite fish.” In “Seven
Pillars,” Lawrence claims the credit
for identifying Emir Faisal as the
future leader of the revolt, but Mr.
Walker rightly finds this doubtful. Instead he suggests that Capt. Norman
Bray identified Faisal as a likely
leader in October 1916, but he fails to
mention that Bray’s superior, Col.
Wilson, had expressed this opinion in
August of that year.
In the end, “Behind the Lawrence
Legend” doesn’t quite set the record
straight about the Arab Revolt. What
its fine and complex narrative does do
is provide a more richly detailed and
nuanced background than we have had
till now to the unfolding of one of the
most colorful theaters of World War I.
Mr. Sattin is the author of “The
Young T.E. Lawrence.”
The Cherokee Nation’s Fateful Choice
tensified the pressure on the tribe dramatically. “Once the gold appeared,”
Mr. Sedgwick writes, “the Cherokee
hills of northern Georgia no longer belonged to the Cherokee; they belonged
to just about anyone with a shovel. No
law, no religion, no morality could ever
hold back gold fever.” Neighboring
never for a moment been arrested,
and one by one have many powerful
tribes disappeared from the earth,”
Jackson said. “To save him from this
alternative, or perhaps utter annihilation, the general government kindly
offers him a new home, and proposes
to pay the whole expense of his re-
SMITHSONIAN AMERICAN ART MUSEUM
Continued from page C5
The whites, for their part, deemed
the Indians a mortal threat. Andrew
Jackson, a large figure in Mr. Sedgwick’s story, launched his first important Indian campaign following the
massacre of 500 men, women and children by Creek Indians at Fort Mims
near Mobile, Ala. Jackson’s reprisal
culminated in the Battle of Horseshoe
Bend, in which The Ridge and a band
of Cherokees fought alongside Jackson
and helped turn the Tallapoosa River
red with the blood of the Creeks.
Despite the complications of the
history he recounts, a single sentence
in Mr. Sedgwick’s book summarizes
the intractable dynamic underlying the
struggle over the Cherokee lands. “The
population”—of the Cherokee—“had
increased only slightly to just under
14,000,” Mr. Sedgwick writes of an
1826 census, “and they were surrounded by well over 1 million whites.”
The fate of the Cherokee was the
unavoidable result of this imbalance of
numbers. Even with the best of intentions, the government of the whites
could not have kept the Cherokee on
their land. At times government did
take the side of Indians. But it was
never successful for long. Britain’s 1763
ban on western settlement was meant
to preserve Indian lands; instead it
helped trigger the American Revolution. President Ulysses Grant’s attempt
to safeguard Sioux rights to the Black
Hills of South Dakota failed after the
discovery of gold there.
Gold was what doomed the Cherokee in their homeland, as well. The
1828 discovery of gold in Georgia in-
MEETING John Mix Stanley’s painting of the 1843 International Indian Council.
whites had previously coveted Cherokee land; now they simply took it.
The U.S. government abetted the
taking. In 1830 Congress approved
and President Andrew Jackson signed
the Indian Removal Act. Jackson cast
the measure as an exercise in liberality. “Humanity has often wept over
the fate of the aborigines of this
country, and philanthropy has been
long busily employed in devising
means to avert it, but its progress has
moval and settlement.” Yet the president made clear that the move wasn’t
optional. The Cherokee had to go.
The law split the Cherokee. One
party followed The Ridge, who reluctantly agreed with Jackson that staying in Georgia risked the annihilation
of the tribe, and this group sought the
best terms in bowing to the government’s mandate. The other party followed John Ross and determined to
hold the land, no matter the cost.
The cost of holding proved impossibly high. Jackson had retired to the
Hermitage by the time the U.S. Army
compelled all the Cherokee to leave.
The removal, along what came to be
called the Trail of Tears, was a humanitarian disaster. Today it would
be labeled ethnic cleansing. Of 15,000
Cherokee who embarked on the
winter journey, some 4,000 died of
disease, exposure and starvation.
It was a tragic story that reflects
badly on what Americans like to
think their country stands for. Yet it’s
difficult, given the imbalance in numbers and the temper of the times, to
devise a credible scenario that turns
out much differently. Andrew Jackson was a hard man—the Indians
called him Sharp Knife—and many
modern Cherokee understandably
liken him to Hitler. But he—and The
Ridge—were probably right in saying
that the only hope for Cherokee survival was for them to get out of the
way of the juggernaut.
For Jackson the reward was enhanced popularity. A few reformist
types, who generally lived far from
the frontier, wanted the government
to protect the Cherokee in place, but
most Americans thought Jackson was
doing the right thing in compelling
their removal. He remained hugely
popular far into the 20th century, a
patron saint of the Democratic Party,
honored with the party’s other demigod, Thomas Jefferson, in annual
Jefferson-Jackson Day dinners.
The Ridge encountered a different
fate. He understood he was taking his
life in his hands by defying John Ross
and urging his people to give up their
home. Upon affixing his mark to a
treaty ceding Cherokee land, he predicted, “I have signed my death warrant.” His prophecy proved true when
followers of Ross, judging him a traitor
to the Cherokee nation, murdered him.
The Cherokee troubles didn’t end
with the forced march west. Mr. Sedgwick carries his story through the
Civil War, which again split the tribe,
with some members fighting on the
side of the Confederacy and others
fighting for the Union. The Reconstruction era brought its own set of
problems. Nor did the Cherokee story
end even then. History doesn’t stop; it
simply adds layers of complexity. The
divided, decimated Cherokee surprised nearly everyone, except perhaps the ghosts of The Ridge and
Andrew Jackson, by making a 20thcentury comeback in their new home.
Today the Cherokee Nation comprises more than a quarter-million
citizens, of whom about half live
under tribal jurisdiction. Credit their
resilience, credit belated guilt on the
part of whites, credit the creative
tension embodied in the struggle between John Ross and The Ridge—but
a 10-fold increase in numbers is no
small thing. Mr. Sedgwick’s subtitle
calls the Cherokee story an “American
Epic,” and indeed it is.
Mr. Brands teaches history at the
University of Texas at Austin. His
next book, “Heirs of the Founders,”
on Henry Clay, John Calhoun and
Daniel Webster, will be published
in November.
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | C7
* * * *
BOOKS
‘La science qui rapproche l’homme de Dieu.’ (‘Science brings men nearer to God.’) —Louis Pasteur
A Longing for Truth and Meaning
Searching for Stars
on an Island in Maine
By Alan Lightman
Pantheon, 226 pages, $24.95
FROM THE ASTRONOMER’S perspective, to look outward is to look
inward. The lines of sight into space,
taken together, converge back onto
oneself, creating an inescapable impression of centeredness. No wonder
the prospect of a star-studded sky
elicits a sense of connection with the
universe, weaving one’s consciousness into the cosmic matrix. Some
astronomers report a rush of spiritual feeling that conjures planes of
existence distinct from the material
world. Perhaps the most solemn
facet of the glittering celestial vault,
besides its looming presence, is its
utter silence: The soundless austerity
of the cosmos calls forth our prehistoric forebears, who confronted the
starry realm with incomprehension,
if not fear. Surely some primeval part
of our brain is instinctively attuned
to the inspirational allure of the
night sky.
At a higher level, we humans experience the natural world through
sensory blinders, our faculties
adapted to survival, not scientific detection. Yet the technology of recent
decades has endowed us with the
means to envision pseudo-images
and mathematical constructs of phenomena beyond naked perception:
atomic nuclei, stellar infernos, contours of space-time. Nor are we constrained by the metronomic passage
of time; we can jump into the longago cauldron of the Big Bang or witness the future incineration of our
planet by the red-giant sun. While
“seeing” the unseeable, free of physical or temporal limits, has revealed
much about the workings of the universe, it leaves plenty of room, even
among scientists, to ponder some of
the core mysteries of human existence: Why are we here? What, if
anything, is the meaning of existence? Is there a God? Is there life
after death? Whence consciousness?
In a delightful collection of essays
titled “Searching for Stars on an
Island in Maine,” MIT astrophysicist
Alan Lightman, the author of the
best-selling
novel
“Einstein’s
Dreams” (1992), examines his own
conflicted views on life, death and
the nature of reality and tries to
reconcile the primacy of his inner,
evidence-driven scientist with his
longing for spiritual transcendence.
We follow Mr. Lightman on his perambulations about tiny Pole Island, a
meditative oasis a million miles from
the hurly-burly of daily life. “If one
listens,” he tells us, “there’s always
GETTY IMAGES
BY ALAN HIRSHFELD
music on this island. The waves rolling into the shore make cascades of
sound, sometimes regular rhythms
and sometimes duples and triples
and offbeat syncopations—all set
against the arpeggios and glissandos
of the birds.”
Each twig, ant hill or rounded
stone—as well as the starry backdrop of the book’s title—serves as
muse for Mr. Lightman’s speculations
about the physical and metaphysical
realms. The elegant and evocative
prose draws in the reader, and I felt
as if I were strolling alongside the
author while he thought aloud. Indeed, it was a challenge to keep pace,
as I repeatedly wandered off into
reveries triggered by the narrative.
Here is a book in which even a
colonoscopy becomes grist for the
philosophical mill: “I am just material stuff,” Mr. Lightman informs us
as a videocam spelunks through his
innards, but he hedges: “I know this
intellectually, yet I recoil from the
idea.” The coverage of scientific versus speculative subjects varies from
essay to essay. The chapter titled
“Hummingbird” details the creatures’
wondrous aerodynamic and meta-
bolic features—period. “Stars” opens
with Galileo’s assertion, inspired by
his observations of sunspots, that
stars are material bodies, proceeds
to the principle of conservation of
energy, and closes with the observation that our bodies’ atoms are the
detritus of stellar explosions. By contrast, “Ants” is a philosophical meditation on temporality versus permanence, while “Laws” lays out the
essential difference between the provisionality of science and the permanence of core religious beliefs.
Viewing the world through the
scientist’s lens, Mr. Lightman reminds us that the universe is made
of tangible bits of matter and energy,
all governed by a set of fundamental
physical laws. Whatever aspects of
nature have escaped detection or explanation, he adds, will be revealed
(eventually) through experiment and
observation. In keeping with his
“Central Doctrine of Science,” he eschews unprovable hypotheses, most
significantly the existence of God and
the afterlife. Yet the expansive feelings aroused by his island wanderings continually sow dissonant seeds
in the scientific furrows he has culti-
vated for decades. Mr. Lightman’s
cognitive turmoil is summed up in a
reflection on the death of his parents, in which he reluctantly accepts
the “impossible truth” that they no
longer exist. “I wish I believed,” he
adds poignantly.
An astrophysicist tries to
reconcile his work as a
scientist with his thirst for
spiritual transcendence.
Mr. Lightman explores the dimly
lit landscape of human consciousness, motivated in part by his own
family’s experience with dementia.
“Self,” he writes, “is the name we
give to the mental sensation of certain electrical and chemical flows in
our neurons.” Might cessation of
these neurochemical currents—essentially, the erasure of self—someday provide a biochemical marker of
the onset of death, so defined? Mr.
Lightman admits that, at present, we
are better at gauging the gradual
diminishment of self than at pinpointing the moment it is extinguished. Contemplating his own end,
he takes solace in knowing that some
of the atoms he has shed might
linger on Pole Island for a thousand
years.
Thus, according to Mr. Lightman,
a precipice looms for each of us: an
eventual plunge into nonexistence.
A depressing prospect, for sure, yet
the inevitable judgment of those for
whom religious or spiritual alternatives carry no resonance. We can
await that reckoning gripped with
fear, bemoaning the unfairness of it
all—or we can embrace whatever
time we have left and gaze with
gratitude at the splendid starscape
above. For us, the wisest course of
action—indeed the only course of
action—was sung memorably by
Peggy Lee back in 1969: “If that’s all
there is my friends, then let’s keep
dancing.”
Mr. Hirshfeld, a professor of physics
at UMass Dartmouth, is the author
of “Starlight Detectives: How Astronomers, Inventors, and Eccentrics
Discovered the Modern Universe.”
The Medicis of Modern Art
a boat from Bilbao, Spain, met John
in Cuba after a 14-month separation,
and arrived in New York in 1941. “I
have been seduced by New York,” she
wrote to her mother. “Expecting to
have a feeling of being overwhelmed,
I have been surprised to find a city
that is so inviting.”
great epiphany to the de Menils. “Life
flows from [artists’] souls, from their
hearts, from their fingers,” Dominique
said. “They invite us to celebrate life
and to meditate on the mystery of the
world, on the mystery of God.
. . . They bring us back to the essential.” Father Couturier, who was al-
HICKEY-ROBERTSON/COURTESY OF MENIL ARCHIVES
Continued from page C5
her. They felt fated to spend their
lives together.
But there were obstacles. First,
there was a malicious letter, apparently designed to ruin the love affair.
It was discredited but not before
Dominique’s parents had forbidden
her to see him. Then there was the
matter of their religious differences.
It took some time to hammer out an
agreement that allowed each of them
to retain their affiliations and their
future children to decide for themselves. The marriage took place a year
later, in 1931. The stage was set for
Jean to join the Schlumberger enterprise, or Société de Prospection Électrique, Procédés Schlumberger, where
his talents were found to be exactly
suited to his new role as a prospector
for oil. He “even coined the company
slogan,” Mr. Middleton notes: “Wherever the drill goes, Schlumberger
goes.” His charm, talent and tact had
found an appreciative response in his
father-in-law; Jean was, Dominique
said, the son that her father, who had
only daughters, never had. Dominique
and Jean’s marriage produced five
children (some of whom became art
patrons in their own right) and lasted
until his death in 1973.
As World War II began, Jean de
Menil (who became “John” and
dropped his baronial title) was traveling constantly for the company in
Europe, the Middle East, South America and the U.S., primarily to Houston
and New York. Dominique remained
with the children in France until the
Nazis took over in 1940.
Since John could not enter France,
Dominique and the children had to
leave somehow. They took passage on
A HOME FOR MASTERPIECES The Menil Collection in Houston.
The experience of life in a great
metropolis was a revelation to them
both. It opened new possibilities and,
most of all, inflamed their dormant
love of art. This interest had begun in
Paris when they had met Marie-Alain
Couturier, a well-born Dominican
priest who was the editor of a small
magazine, L’Art Sacré, that sought to
reconnect artists with the church.
Father Couturier’s belief in art as an
expression of the ineffable was the
ready in New York, became their constant guide and interpreter, even for
artists they disliked. The latter, however, were very few.
As this wonderfully illustrated narrative records, the de Menils maintained their benevolent willingness to
suspend disbelief, whether buying
René Magritte’s famous cityscape
raining identical little men in black
overcoats and bowler hats, or an African sculpture from the Congo, or
Robert Rauschenberg’s “Crucifixion
and Reflection,” composed entirely of
rectangles in shades of gray. Even
their friends, who marveled at their
eclectic tastes, were surprised to see
the ease with which they viewed
Andy Warhol’s entourage. Of Dominique, the art historian John Richardson remarked: “She was pretty
unshockable. . . . Which comes as
something of a surprise that someone
so restrained, so delicate in many
ways, could take the Warhol Factory . . . at its worst, with junkies all
over the place and people in drag and
God knows what going on.”
Dominique, with her liberal political interests, was as openhanded a
hostess as she was a collector, entertaining nonstop in their curious
ranch-style house in Houston (home
of Schlumberger’s U.S. headquarters),
designed for them by Philip Johnson.
Its interiors were the work of
Charles James, the singular couturier
whom she patronized at this stage.
Their guests included writers, composers and filmmakers such as Susan
Sontag, Norman Mailer, Philip Glass
and Michelangelo Antonioni, as well
as the artists Magritte, Duchamp and
Max Ernst. At one dinner party in
Houston attended by Antonioni, a
drunken neighbor kept addressing a
fellow guest who had campaigned for
desegregation as a “n— lover.” Another guest brusquely told him to
stop, at which point the offender
hauled off and knocked him out of
his chair. The evening threatened to
become a free-for-all but was saved
by John in the nick of time. The
drunken neighbor stormed out. No
doubt Dominique took it in her
stride.
The de Menils—who bought “Montagne,” their first Cézanne, on Father
Couturier’s advice in 1944—looked
and looked and bought and bought,
assembling a collection ranging from
Paleolithic bone carvings, Cycladic
idols, Byzantine relics and African
totems to masterpieces by Picasso,
Braque, Magritte, Ernst, Calder,
Rothko, Rauschenberg, Warhol and
many more, some 17,000 paintings,
sculptures, prints, drawings, photographs and books. “The new, the modern, without the old,” Dominique said,
“is like a child without a family, without a tradition, or a man without
memory.” Some of these works they
donated to institutions, including the
Centre Pompidou, in Paris, the Museum of Modern Art, in New York, and
the Museum of Fine Arts, Houston.
The rest are now housed in their lightfilled museum in Houston, designed
by Renzo Piano and opened in 1987.
After her husband’s death, Dominique worked even harder and was
still engaged in the pursuit of the ineffable for the next 20 years. She had
a strong hand in planning and installing exhibitions drawn from their collection, as well as in designing the
Houston museum, always “rigorously
involved in every detail,” Mr. Middleton writes. To determine the ideal
height for the building’s roofline, she
walked the site with a balloon on a
string. Before she, too, died, in 1997,
Dominique said of her late husband:
“He leaves me with a mission that I
must complete.” Complete it she did.
Ms. Secrest, recipient of the
National Humanities Medal, is the
author of many biographies in the
fields of art, architecture and music.
.
C8 | Saturday/Sunday, April 7 - 8, 2018
* ***
THE WALL STREET JOURNAL.
BOOKS
‘It is difficult to write a paradiso when all the superficial indications are that you ought to write an apocalypse.’ —Ezra Pound
Naples Painted Black
Neapolitan Chronicles
By Anna Maria Ortese
New Vessel, 192 pages, $16.95
DON’T MESS WITH Naples. The investigative journalist Roberto Saviano
learned that lesson in 2006, when his
organized-crime éxposé “Gomorrah”
got him targeted by the Camorra and
taken into police protection, where he
remains to this day. A previous writer
who portrayed the city unfavorably
and then paid for it was Anna Maria
Ortese. In 1953, the 39-year-old Ortese,
a native Roman who had spent much
of her life in Naples, published a
mixed-genre book (three short stories,
two pieces of reportage) that enraged
many locals, particularly among the
intelligentsia. Such was the reaction
that Ortese, feeling ostracized, left
Naples for good.
Sixty-five years later, the book has
finally been translated into English,
under the title “Neapolitan Chronicles.” Why now? Clearly it has something to do with the best-selling novelist Elena Ferrante, who praised the
book in her collection “Frantumaglia.”
(Ms. Ferrante’s English translator, Ann
Goldstein, co-translated “Neapolitan
Chronicles” with Jenny McPhee.) Not
that she’s alone in thinking it special.
The book, Ortese’s third, won a major
prize and kick-started her career;
according to New Vessel Press, her
American publisher, she became “one
of the most celebrated and original
Italian writers of the 20th century.”
Though Ms. Ferrante’s enthusiasm
made me a bit wary—while admiring
her intelligence, I’m not a fan—I was
curious to read “Neapolitan Chronicles.” The furious local response suggested that Ortese had nailed an unpleasant truth or two, and I assumed
that the book would evoke the distinctive atmosphere of postwar Naples; at
a minimum, I expected to find it vivid
and revealing.
How wrong I was. Though it has
patches of satisfactory writing, “Neapolitan Chronicles” is a shallow, obtuse,
insufferable book, its faults so glaring
and pervasive that I fail to understand
how anyone can overlook them.
These flaws first become prominent
in “Family Interior,” the book’s second
story. Anastasia, a 40-ish spinster who
supports her whole family, briefly indulges a romantic fantasy before resigning herself to loneliness and selfsacrifice. The problem isn’t Ortese’s
well-worn theme but her ham-fisted
handling of it. Devoid of nuance and
often hackneyed, her language is also
numbingly repetitive. On page 37, we
learn that Anastasia’s “life had been
nothing but servitude and sleep”; on
page 44, that her aunt “had to resign
herself . . . to a servile and silent life”;
on page 50, that her mother “led a
servile life.” “Life,” in fact, is used dozens of times, almost always tritely.
GETTY IMAGES
BY BEN DOWNING
warm-up for “The Silence of Reason,”
a ghastly series of articles that make
up half the book. For 90 interminable
pages, Ortese attempts to expose a
group of writers and editors who
once worked with her at Sud, a Neapolitan literary magazine, as pathetic,
insecure, mean-spirited narcissists.
So they may have been, but I
wouldn’t take her word for it. Her de-
(One sentence runs, in its entirety:
“Life . . . it was a strange thing, life.”)
Then there are Ortese’s physical descriptions. One character has “a small
green face,” another a “putrid-yellow
face,” a third an “ugly smiling face,” a
fourth a “horrible body” and a “waxy
smiling face” that later becomes a
“horrible, crimson-colored face.”
If you sense humorless misanthropy
here, you’re exactly right. In a preface
written for a later edition, Ortese
recalls that her book was “judged to
be ‘anti-Naples,’ ” but really it’s antipeople. Her disdain and revulsion are
triggered by individuals and whole
populations alike. In her story “The
Gold of Forcella,” she characterizes the
residents of a neighborhood (a real
one) as “a race devoid of all logic and
reason.” “Humankind,” she continues,
“was now a shadow of itself, weak,
neurotic, resigned to fear and impudent joy. . . . In this dark pit only the
fire of sexuality burned bright under
an eerie black sky.”
Ludicrous in fiction, this kind of
language is inconceivable in journalism. Ortese, however, saw no problem
with it. In “The Involuntary City,” an
article about a notoriously squalid
building crammed with desperately
poor tenants, Ortese describes an
elderly woman as “completely
bloated, like a dying bird,” and “only
an enormous flea.” Another woman is
“bloated, horrendous, the fruit . . . of
profoundly defective creatures.”
When ground-floor tenants react
mutedly to a child’s death, Ortese
declares: “Down there no possibility
of emotion survived. There was darkness, and nothing else.” Not only does
she sound like a eugenicist, she repeatedly credits herself with the godlike power to read hearts and minds.
“Behind that deplorable forehead, a
measure of hope existed,” she writes
of the “bloated, horrendous” woman.
She can tell just by looking.
For all their venom and contempt,
these three pieces are merely a
Ortese was shattered by
the ‘horror’ of life. Naples
was the scrim on which
she projected her despair.
scriptions are suspiciously similar.
Over and over, she describes her subjects as “cold,” “indifferent” and full
of “rage,” “fury,” “malice” and “hostility,” which they hide—though not
from her!—behind fake smiles. She
habitually compares them to children
(“Once again, like a stubborn child, he
blew his nose, in order not to answer
me”) and deems them mentally and
morally defective: One is “incapable
of conceiving the word death,” another lacks “the courage . . . to think
clear and logical thoughts.”
Interspersed with these put-downs
are risible, often mystifying passages
in which Ortese pontificates on class,
politics and the afflictions of Naples
and southern Italy. In the Mezzogiorno, she discloses, “a secret ministry exists for the defense of nature
from reason.” As for the Neapolitan
bourgeoisie, it has “renounced the
ability to see the common people as
living beings” and is incapable of “believing that humankind [is] different
from nature.” Maybe it was brainwashed by the secret ministry?
The irony is that Ortese, who
claims to see what others don’t, is so
blind to her own flaws and prejudices
that she unwittingly ascribes them to
everyone else. When she says a writer
“dictated in a voice that was incredibly
cold, mechanical, monotonous, yet
transparently still full of hate and
pain,” her words fit a certain someone
to a T. In her preface, she concedes
that she attributed her own “horror”
and “authentic neurosis” (as opposed
to inauthentic neurosis?) to Naples,
and expresses regret. Then, in the next
paragraph, she refers to herself as “the
person accused of having invented a
terrible neurosis for the city.” Her
prickly self-contradiction says it all.
What makes “Neapolitan Chronicles” a truly bad book isn’t its misanthropy—hatred for the species can
be magic in the right hands—but its
tediousness and immaturity. In her
apparent wish to shock, her unconscious projection of feelings onto
others, her tendency to, as the Italians say, “see everything black”
(vedere tutto nero), her limited,
hyperbolic, cliché-ridden means of
expression and love of words like
“putrid,” Ortese is a fundamentally
adolescent writer. No wonder she
dismissed her peers and rivals as
juvenile.
After finishing “Neapolitan Chronicles,” I found myself thinking of two
books that actually deserve their
acclaim, Carlo Levi’s “Christ Stopped
at Eboli” (1945) and Norman Lewis’s
“Naples ’44” (1978). Both authors
washed up briefly in southern Italy
(Levi was exiled by the fascists,
Lewis was an intelligence officer with
the Allies) and wrote about it with
insight, affection, pity, humor and
harrowing precision. Ortese spent
decades there and seemingly learned
nothing. The book that resulted, ostensibly a panorama of the material
and spiritual poverty of Naples, is
really about little more than her own
destitution.
Mr. Downing is the author of
“Queen Bee of Tuscany: The
Redoubtable Janet Ross.”
MYSTERIES: TOM NOLAN
Surviving
A Trifecta
Of Traumas
BOSTON’S KATE
Wolfe, the 32-yearold child psychiatrist at the center of
Alice
Blanchard’s
terrifying thriller
“A Breath After Drowning” (Titan,
441 pages, $14.95), endured a grim
childhood. Her mother was committed to an asylum when Kate was 10—
and later committed suicide. Kate’s
younger sister was kidnapped and
murdered in a horrific way. Her
father retreated into solitude soon
after.
But Kate survived her “trifecta of
traumas” to devote her adult life to
a career helping young people negotiate similar crises—in part as a way
of assuaging the guilt she still feels
for having left her sister alone the
night she was abducted. It is all the
more distressing, then, when an
emotionally vulnerable teenage patient hangs herself as soon as Kate
prepares to leave on a long-deferred
vacation.
“None of this was your fault,” her
old mentor tells her. “Sometimes
the darkness takes over.” In this
case, the darkness won’t let go. At
her patient’s funeral, Kate encounters Palmer Dyson, a retired police
detective from her hometown back
in New Hampshire. Palmer shares
his doubts that the man convicted
of killing Kate’s sister—and soon to
be executed—is actually guilty. After meeting the condemned man,
Kate begins to have doubts of her
own. It could be that the real killer
is still at large.
A damaged woman takes
on a cold case—the
abduction and murder
of her younger sister.
With the ex-cop’s guidance, Kate
is soon acting like a detective in her
own right: poring through old police
files, considering alternative scenarios and using her psychiatric
training to deduce the identity of
someone Palmer is convinced is an
undetected serial killer.
Bizarre coincidences and shocking
revelations concerning former neighbors and Kate’s own family members, as well as the murder of the
mother of another one of her patients, cause Kate to question her
own hard-earned sanity. But she’ll
need all her wits about her, and then
some, to eventually do battle with
one of the most memorable genre
villains since Hannibal Lecter.
FICTION CHRONICLE: SAM SACKS
A Moonshine-Lit Kentucky Noir
the visit from the state official, whose
heavy-handed interference triggers a
domino run of murders.
The rumblings of Southern Gothic
horror are audible in the distance of
“Country Dark,” but Mr. Offutt is such
a measured and unexcitable stylist
that the story never wallows in the
grotesque. Tucker lashes out only
when he feels cornered—the novel
builds to a superbly orchestrated
showdown with the double-crossing
bootlegger—yet his standout quality is
his loyalty to Rhonda throughout surpassing hardship, as though “the two
marries, the sisters begin to vacation
either in San Diego or on an island off
British Columbia with their newly
minted stepbrothers, Kenneth and
Patrick, California boys with golden
tans and “eyes glimmering blue like
the sun on oiled nickels.” Joan and
Kenneth, the oldest and most attractive, pair off and eventually marry. In
the shadow of their shining siblings,
Willa and Patrick forge a relationship
both more secretive and more unsettlingly transgressive.
Chris Offutt’s latest
is a backcountry tragedy
that moves fluidly
between violence and love.
of them were a single tree split by
weather.” That image—natural, understated yet profound—exemplifies Mr.
Offutt’s fine homage to a pocket of the
country that’s as beautiful as it is
prone to tragedy.
Eliza Robertson’s coming-of-age
novel “Demi-Gods” (Bloomsbury,
230 pages, $26) takes place mostly in
the 1950s, and like “Country Dark” it
generates some of its friction by chafing against the postwar decade’s
reputation for innocence. When Joan
and Willa’s dissipated mother re-
GETTY IMAGES
EARLY IN Chris Offutt’s novel “Country
Dark” (Grove, 231
pages, $24), his first
work of fiction in
nearly two decades,
a white-collar social services officer
visiting a family in the backwoods of
eastern Kentucky thinks about the
way of life hidden down those rutted
dirt roads. “Something existed in the
hills he didn’t want to disturb. It
scared him and the fear made him
angry. He wondered what kind of
people lived here.”
You expect descriptions like this to
be accompanied by eerie banjo plucking from “Deliverance.” But Mr. Offutt
impressively inhabits this impoverished, fiercely private world without
condescension or romance, fashioning
a lean, atmospheric story that moves
fluidly between the extremes of violence and love.
The book begins in 1954, following
a decorated Air Force veteran called
Tucker, who returns to Kentucky from
Korea at the age of 18 (having lied
about his age to enlist), hardened to
granite by his combat behind the lines.
Tucker marries a teenage girl named
Rhonda, gets a job running moonshine
for the local bootlegger and tries to
stay as far out of sight of civilization
as possible. But as Mr. Offutt writes,
trouble seems to come his way “like
sideways wind in winter.” Inexplicably,
Rhonda gives birth to a sequence of
mentally disabled children, prompting
Sadism is the unwritten word at the
heart of “Demi-Gods.” Patrick, the sort
of boy who sets fire to moths and
decapitates small animals, finds in
Willa a captive partner for sexual
experimentation. Their summer interludes are few but formative and they
lend an almost hyper-real clarity to
Willa’s recollections as she narrates
from the distance of middle age.
“Demi-Gods” reminded me favor-
ably of novels like Deborah Levy’s
“Swimming Home” and Emma Cline’s
“The Girls,” where a hazy, swollen
summer ambience is sliced through by
the razor-wire of menace and illicit
arousal. Ms. Robertson’s writing is
compact, barbed and often startling.
She has a flair for finding a perfectly
apt yet wholly unexpected verb for
each moment. We see “bricks fleeced
with algae” and birds’ eggs “murmured with black splashes.” We hear
the “chortle” of a coffeepot and the
sound of Joan’s feet
as they “kiss down
the hall.” The morning
sun “roasted higher in
the sky”; a dancing
couple’s “hips jangled”; as he pretends
to sleep, Patrick’s
“eyeballs hummed beneath his lids.”
“A breeze wafted
over us,” Willa remembers, “rustling
the ivy on the fence so
the vines looked alive,
sucking termites from the wood.” Her
uncanny recall, disturbing all the
senses and making the past seem more
vivid than the present, makes this one
of the most memorable first novels
I’ve read in 2018.
“A plane is no place for screaming,”
the nameless narrator of Noémi Lefebvre’s “Blue Self-Portrait” (Transit,
143 pages, $15.95) reminds herself as
she takes the short flight from Berlin
to Paris. Her agitation grows from the
memory of her behavior in Germany
with a would-be lover, a gloomy pianist obsessed with the modernist Austrian composer Arnold Schoenberg
(whose little-known painting gives the
novel its title). Instead of acting cool
and sophisticated our narrator prattled like a flibbertigibbet. “I’d blitzed
the pianist with a blizzard of shameless data,” she thinks in dismay, and in
the 90-minute span of the flight she
compulsively cycles through the discussions, themes and misunderstandings of their awkward tête-à-têtes.
Stream-of-consciousness novels
reproduce the motions of the mind by
funneling discrete time periods into a
single narrative flow. The narrator’s
impressions on the plane close over
her memories of her coffee dates
with the pianist, which further enfold
her apprehension of his ideas about
Schoenberg and other Nazi-era artists who placed the integrity of their
private visions over “collective morals.” Her thoughts are spiraling and
recursive, returning again and again
to the same moments but presenting
them with slight variations, a borrowing from Schoenberg’s theory of
atonal development.
That sounds fussy and intimidating,
but “Blue Self-Portrait” wraps its difficulties in mercurial humor and wordplay, gamely translated from the French
by Sophie Lewis. It’s inviting enough to
read and re-read, and dense enough to
provoke different responses each time.
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | C9
* * * *
BOOKS
‘The most courageous act is still to think for yourself. Aloud.’ —Coco Chanel
The Womanly Art of Having an Opinion
Sharp
By Michelle Dean
Grove, 362 pages, $26
SOME YEARS AGO, I introduced a
new course at my university. It was
called “Public Intellectuals in America” and it attracted a small band of
students, fit though few, to read the
likes of Edmund Wilson, Dwight
Macdonald, James Baldwin, Susan
Sontag and Christopher Hitchens.
After teaching the course for several
semesters, I remember remarking to
a colleague about its unusually
sparse enrollment. “Change the
title,” she urged. “The word ‘intellectuals’ is intimidating.” I took her
advice and redubbed the course
“Writing to Be Heard.” Enrollment
that year shot up and has remained
consistently high ever since.
Even smart, college-educated
Americans are leery of intellectuals.
We have a long tradition in this
country of prizing doers over thinkers, dismissing intellectuals as “ineffectuals” and pretentious eggheads. Consequently, the suspicion
Michelle Dean must allay in “Sharp,”
her cultural history of ten women
who “talk[ed] about thinking, in
public,” is that she’s going to lead
readers on a dutiful plod through the
brain folds of, among others, Rebecca West, Hannah Arendt, Renata
Adler, Joan Didion, Janet Malcolm
and the aforementioned Sontag. The
danger, of course, is that in the
effort to “sell” these thinkers to a
wider audience, Ms. Dean might err
on the side of peppiness, going light
on analysis in favor of anecdote.
After all, there are so many stories
to tell, so much bad behavior on the
part of these otherwise brainy
women and their male contemporaries to revel in, and so many zingers to quote.
Take, for instance, critic Lionel
Abel calling Hannah Arendt “Hannah
Arrogant” behind her back and Delmore Schwartz dissing her as “that
Weimar Republic flapper.” Consider
Pauline Kael’s backhanded compliment about Joan Didion’s writing:
“The smoke of creation rises from
those dry-ice sentences.” Or, mull
over the very first conversation
between a young Sontag and the
venerable Mary McCarthy at a party
at Robert Lowell’s home in 1964.
McCarthy remarked to Sontag that it
was clear she wasn’t from New York.
Sontag recalled that she said:
“No, actually I’m not. Although
I’ve always wanted to live here. . . .
But how did you know?”
“Because you smile too much,”
McCarthy said.
SEAN MCCABE
BY MAUREEN CORRIGAN
OUTSPOKEN Clockwise from upper left: Hurston, Adler, West, Arendt, McCarthy, Malcolm, Didion, Parker and Sontag.
How easy it would be to assemble
a coffee table compendium of such
dazzlingly awkward moments in
American intellectual history.
In “Sharp,” however, Ms. Dean
has pulled off a much rarer
achievement: She’s written an
entertaining and erudite cultural
history of selected female thinkers
who “came up in a world that was
not eager to hear women’s opinions
about anything.” Indeed, Ms. Dean
herself performs the work of a public intellectual by doing justice to
the substance of her subjects’ work,
while also conveying—through her
own wit and lively opinions—why
their work matters. This is a book
designed to stir up discussion and
dissension in its readers, beginning
on the very first page of its preface,
where Ms. Dean states the criteria
that guided her selection process:
“I gathered the women in this book
under the sign of a compliment
that every one of them received in
their lives: they were called sharp.
The precise nature of their gifts
varied, but they had in common the
ability to write unforgettably.” One
can
already
anticipate
the
objections sure to erupt in book
clubs and seminar rooms across the
land. Why does Mary McCarthy
deserve a chapter and not Lillian
Hellman? Rebecca West, but not
Gertrude Stein? What does that
blandly capacious phrase, “write
unforgettably,” mean?
Even more potentially controversial is Ms. Dean’s acknowledgment
that her chosen subjects don’t constitute “a perfect demographic sample. These women came from similar
backgrounds: white, and often Jewish, and middle-class.” There’s good
reason for that exclusivity. As Ms.
Dean reminds readers in a very brief
chapter partly devoted to Zora
Neale Hurston: “The intellectual
situation in the America of her time,
and for many years after, was a very
white background. . . . Black writers
were not invited to contribute to the
New Republic, or the New Yorker.
Making a living solely as a literary
journalist would have been impossible for her.”
But let’s leave off gnawing on
these questions of methodology and,
instead, acknowledge the intellectual
and, yes, even inspirational bounty
that “Sharp” offers its readers. Along
with incisive readings of their most
emblematic work, Ms. Dean skillfully
encapsulates each of these women’s
life stories, focusing on their mostly
roundabout and bumpy paths to a
public career. (“Late bloomers” Pauline Kael and Janet Malcolm didn’t
come to prominence until their 40s.)
What becomes evident as Ms. Dean
considers these female thinkers collectively, instead of viewing them as
“one off” cultural phenoms, is how
important not only “tony” outlets
like the New Yorker and Partisan Review were to giving these women a
perch but also women’s magazines
such as McCall’s, Vogue and Mademoiselle. Also striking is the many
ways their paths intersected: Mary
McCarthy became Hannah Arendt’s
this book and is in many ways its
presiding deity, Ms. Dean observes,
“This was her gift: to shave complex
emotions down to a witticism that
hints at bitterness without wearing
it on the surface.” Reflecting on
Mary McCarthy, who famously wrote
in “Memories of a Catholic Girlhood”
about being orphaned when her parents died in the 1918 flu epidemic,
Ms. Dean says: “What McCarthy got
in exchange for that lost other existence was the inquisitive detachment
that became known as characteristic
for her writing.”
There’s so much more to savor,
ruminate on, learn from and, certainly, argue with in this splendid
book. “Sharp” embodies the work of
its subjects and manages the difficult intellectual and narrative feat of
linking a bunch of disparate women
writers, not via their topical interests, but by their sensibility: that of
writers, with one foot in the mainstream of the American intellectual
culture that men made, and one foot
outside, sometimes by their own
decision, and sometimes not. And
each one of them, in this wonderful
telling, is very much an intellectual
and a writer to be heard.
Female thinkers who came
up in a world that was
not eager to hear women’s
ideas about anything.
literary executor; Renata Adler (who
was at one time engaged to McCarthy’s son) attacked Pauline Kael in
the pages of the New York Review of
Books; Kael, in turn, was antagonistic to Sontag in the introduction of
her surprise best seller “I Lost It at
the Movies.” Ms. Dean also explores
the seeming paradox that some of
these extraordinary women did not
call themselves “feminists,” and she
explores the reasons why even those
who were more comfortable with the
label “wavered.”
Ms. Dean is especially “sharp”
herself when it comes to nailing her
subjects’ distinctive gifts as writers.
About Dorothy Parker, who kicks off
Ms. Corrigan, who teaches literature
at Georgetown University, is the
book critic for the NPR program
“Fresh Air.”
CHILDREN’S BOOKS: MEGHAN COX GURDON
The Many-Storied Past
in which we adapt,” Mr. Fagan writes
in this learned and lively account.
“And every year, new discoveries
and technical advances make it
easier to peer over the shoulders of
ancient people—almost, sometimes,
to talk to them.”
Like artifacts, the names that parents give children often have stories
to tell. In “Alma and How She Got
Her Name” (Candlewick, 32 pages,
$15.99), author and illustrator Juana
Martinez-Neal draws on her own girlhood perplexity with what, she
confesses, “I thought was the most
feels a new sense of connection. She
is named for her grandmother, Sofia,
who loved books and flowers (“I love
books and flowers,” Alma realizes);
for her artist grandfather, José (“I
draw a lot, too!”); and for her greataunt Pura, who “believed that the
spirits of our ancestors are always
with us, watching over us.” Touching
on cultural themes central to the
recent Pixar movie “Coco,” this is a
tender outing for children ages 4-8.
When Korean babies reach their
have a really long life.” Thistle seeds,
it seems, augur peace and plenty.
In dainty ink-and-watercolor illustrations, we see the festive preparations. Invitations go out by “mail
snail” (literally, a snail toting a sack
of letters). Hazel and her father
make dandelion kimchi and fiddlehead soup. Hazel and Twig’s mother
puts out flowing pink traditional
dresses, called hanboks, for the
mouse-girls to wear. Gentle and joyful, the story is a celebration of
first birthdays, tradition calls for a
fortune-telling ceremony known as
the doljabi. This happy occasion finds
a woodland setting in “Hazel &
Twig: The Birthday Fortune” (Candlewick, 40 pages, $15.99), a picture
book by Brenna Burns Yu about a
mouse family’s upcoming celebration.
It is almost Twig’s first birthday, and
it falls to her big sister, Hazel, to explain all: “We’ll put out lots of things,
like a lute and a ball of yarn and
some toasted thistle seeds. Then
you’ll go pick one—only one, OK? If
you pick the lute it means you’ll be a
musician, and the yarn means you’ll
Korean customs even as, for many
readers ages 3-7, it will also serve as
an introduction.
Writer Adam Gidwitz and illustrator Hatem Aly, fresh from “The
Inquisitor’s Tale,” their 2017 Newbery Honor-winning collaboration,
have turned their talents to “The
Unicorn Rescue Society,” a new
series for readers ages 7-10 about a
cadre of eccentrics dedicated to protecting exotic creatures of myth and
legend. In the first volume, “The
Creature of the Pines” (Dutton, 163
pages, $14.99), a fearless girl,
Uchenna, and a diffident new stu-
A child’s history of
archaeology leads a pack
of books about ancient
customs all the world over.
old-fashioned, harsh, ugly, and waytoo-Spanish name”—Juana Carlota
Martinez Pizarro—“in all of Lima,
Peru, where I grew up!” Like Ms. Martinez-Neal, little Alma cannot understand why she is burdened with such
an impossibly long name as “Alma
Sofia Esperanza José Pura Candela.”
In soft graphite and coloredpencil illustrations, we see the little
girl in her rose-striped playsuit complaining to her father. “Let me tell
you the story of your name,” he says,
pulling out a photo album. “Then
you decide if it fits.” Every piece of
Alma’s name, she discovers, comes
to her from someone in her family,
and, as she and her father talk, Alma
YALE UNIVERSITY PRESS
‘ALL ARTEFACTS,
however humble,
have a story to tell,”
Brian Fagan writes
in the opening pages
of “A Little History
of Archaeology” (Yale, 277 pages,
$25), an engaging tour through a
discipline that, for all the antiquity
of its subject matter, has been
around for a surprisingly short time.
Archaeologists have been digging
into the earth to learn about past
human societies for only about the
last 250 years, and, as readers ages
13 and older will learn, many explorers in the early days were adventurers who inadvertently damaged
as much as they discovered.
In short chapters packed with
color and context, alongside occasional illustrations (see right), Mr.
Fagan takes us to celebrated sites in
Egypt, Syria, Cambodia, China and
Crete but also to fascinating and
less widely known archaeological
marvels, such as Doggerland, where
a 9,000-year-old Ice Age fishing
culture now lies beneath the North
Sea (on what was once marshland),
or Must Farm, a 3,000-year-old
Bronze Age village that, thanks to a
covering of silt, is perfectly preserved. Mr. Fagan calls it “Britain’s
Pompeii.”
A field of study that began with
pickaxes and shovels now compasses
sophisticated drones and aerial laser
scanning, giving us thrilling
glimpses of ancient wonders yet to
be fully revealed. “Archaeology helps
explain why we are similar and why
we are different. It explains the ways
dent, Elliot, go on a field trip run by
Professor Fauna, a teacher who
wears a unicorn insignia and has a
voice “like someone had put rocks in
a blender.” Fauna leads his students
into the New Jersey pine barrens, a
dry wasteland with a fascinating history where, in short order, Uchenna
and Elliot encounter a tiny blue
winged beast that the world believes
to be mythological.
It’s a fun, fast read marred, unfortunately, by political cheap shots that
detract from the freshness of the
project. The villains of the piece are
two white billionaire industrialists,
the Schmoke Brothers (get it?), who
operate under the motto “Making the
World the Way We Want It to Be.”
And out of the blue—presumably to
scratch a political itch—a venerable
old woman in the barrens, whose
heritage, we’re told, is black, Irish,
French, Jewish and Lenni-Lenape
Indian, lectures the visiting schoolchildren about early American hypocrites. “You had all these rich men,
Washington and Jefferson and all,
running up and down the East Coast,
saying they were fighting for a place
where people could live free,” when
of course not everyone could. “The
Founding Fathers thought they were
inventing America,” the woman continues. “But we were the ones inventing America. And you know what
America looks like? It looks like me.”
In these politicized times, kids aren’t
even allowed to enjoy a page-turner
about freaky teachers and magical
creatures without being made to
swallow a dose of ideological cod
liver oil. It’s so tedious.
.
C10 | Saturday/Sunday, April 7 - 8, 2018
THE WALL STREET JOURNAL.
* ***
BOOKS
‘Music straitjackets a poem and prevents it from breathing on its own, whereas it liberates a lyric. Poetry doesn’t need music; lyrics do.’ —Stephen Sondheim
By Edward Brooke-Hitching
Chronicle, 256 pages, $29.95
CHRONICLE BOOKS
BY A. ROGER EKIRCH
IN THE SPIRIT of modern treasure
hunters in quest of lost shipwrecks,
early explorers scoured the seas for
islands and continents born of legend, delusion and deception. Maps
and navigation charts afforded their
only guidance, and many are colorfully reproduced in Edward BrookeHitching’s “The Phantom Atlas: The
Greatest Myths, Lies and Blunders on
Maps.” The author details over 50
instances of fake cartography, including their reputed coordinates: from
the Strait of Anian to the Phantom
Lands of Zeno.
As Mr. Brooke-Hitching describes,
honest mistakes, grounded in religious
dogma and classical mythology, were
often to blame for inaccuracies. (Plato
was among the first to record the
myth of the Island of Atlantis, whose
destruction, he wrote, had left a “shoal
of mud” that rendered the sea “impassable and impenetrable.”) But navigators were also fooled by optical illusions arising from mirages, icebergs
and low-lying clouds dubbed “Dutch
Capes.” In the meantime the persistence of fictitious claims led
innumerable generations of
mariners astray. Remarkably,
not until 2012, after first being
“sighted” by a whaling ship in
the late 1800s, was
Sandy Island in the
Coral Sea “undiscovered” by an
Australian team of
marine scientists.
In time, with
the proliferation of
printing in the 1500s,
the publication of salacious tales turned a ready
profit. Besides gold, silver and
precious gems, far-off lands
were said to contain all manner of
forbidding creatures—demons, Patagonian giants and human-shaped fruit.
As Jonathan Swift mocked: “So geographers in Afric-maps / With savagepictures fill their gaps.” Few scribes
were as infamous as the 18th-century
French impostor, George Psalmanazar,
who claimed to be a native of the
primitive island of Formosa, brought
against his will to Europe by a Jesuit
priest. Years after the appearance in
1704 of his adventures, a spurious
publication featuring no shortage of
gruesome tales, he remained a celebrity. When asked why he had befriended the scoundrel, Samuel Johnson avowed, “I should as soon have
thought of contradicting a bishop.”
Contrary to the author’s assertion
that the book’s lands and waterways
“are all entirely fictitious,” he allows,
in a few instances, for the possible
impact of seismic shocks, volcanic
eruptions and catastrophic erosion.
Sannikov Island, “discovered” around
1810 in the Arctic Ocean by a Russian
geographer, spurred later expeditions,
all in vain, before being omitted from
maps beginning in 1937. Possibly it
had sunk, a common calamity for
shoals saturated by permafrost in
northern latitudes.
No less baffling was the fate of
Mayda, an island in the North Atlantic
that cartographers officially expunged
after it had appeared on maps for
more than five centuries. Yet in 1948,
in the reputed vicinity of Mayda,
where ocean depths reached 2,400
fathoms, the captain of a freighter
noticed a seeming change in the sea’s
color and took a sonar reading that
revealed a depth of only 20 fathoms
and a submerged land mass 28 miles
Islands that never existed
inspired adventurers to
undertake quixotic trips
with tragic consequences.
in diameter—the victim, speculates
Mr. Brooke-Hitching, of “some act of
geologic violence centuries ago.”
It would be wrong to dismiss “The
Phantom Atlas” as an exotic side-show.
Cartographic errors sowed real anxiety
and confusion among mariners. They
influenced shipping routes and inspired adventurers to undertake
quixotic expeditions, occasionally with tragic consequences.
“These phantoms,” the author tartly observes, “were
considered a plague on
navigational charts.”
And there have
been geopolitical
reverberations. Just
nine years ago, in
the Gulf of Mexico, a
controversy was finally
resolved over the reputed
island of Bermeja, a Mexican possession originally recorded in 1539 on a Spanish map.
Locating the tiny island promised to
dramatically extend Mexico’s nautical
sovereignty to include precious oil
rights in the Gulf. Despite a last-ditch
effort, neither aircraft nor a Mexican
research vessel succeeded in finding
Bermeja. Diehard believers, ceding no
ground, cited global warming or the
possibility of an undersea earthquake—thin satisfaction at best. Because billions of barrels of oil were at
stake, the CIA was also blamed for the
island’s destruction.
“The Phantom Atlas” will prove rewarding for armchair adventurers and
nautical historians. For more intrepid
souls, it affords an indispensable guide
to legendary sites or, just possibly, remote realms waiting to be reclaimed.
Don’t forget to bring a camera.
Mr. Ekirch, a professor at Virginia
Tech, is the author of “American
Sanctuary: Mutiny, Martyrdom,
and National Identity in the Age
of Revolution.”
Todd S. Purdum
on songs of the American century
brisk minibiographies of their
subjects, sprinkled with dry wit.
When Dorothy Fields’s actorproducer father told her that
“ladies don’t write lyrics,” she
countered: “I’m not a lady, I’m
your daughter.” The entry on
Sammy Cahn, one of Hollywood’s
most commercially successful
wordsmiths, notes that he had a
“generous opinion of himself, but
he was clear-sighted as well,” once
answering an interviewer who
asked which came first, the words
or the music: “I’ll tell you which—
the money!”
Finishing the Hat:
Collected Lyrics (1954-1981)
By Stephen Sondheim (2010)
1
THE REIGNING MASTER of
the theater song reflects on
the ingredients of his art and
offers provocative critiques of his
canonical colleagues. He is
surprisingly tough on icons, from
Ira Gershwin to Lorenz Hart and
Noël Coward, but reserves special
scorn for Alan Jay Lerner. “It’s
hard to comment on or even write
about Alan Jay Lerner because his
work is so professional and
uninteresting when compared to
that of the other major theater
lyricists,” Mr. Sondheim writes.
His bêtes noires include near
rhymes: “Claiming that true rhyme
is the enemy of substance is the
sustaining excuse of lyricists who
are unable to rhyme well with any
consistency.” His own credo:
“Content Dictates Form, Less Is
More, God Is in the Details—all in
the service of Clarity, without
which nothing else matters.”
The House
That George Built
By Wilfrid Sheed (2007)
3
WILFRID SHEED, a Britishborn critic and novelist,
offers informed, insouciant
takes on the top songwriters of
the 20th-century era when good
music was popular and popular
music was good, leavened by his
personal acquaintance with some
of the greats. He assesses the
alchemy of Irving Berlin, noting
that the composer himself was
reluctant to probe too deeply into
the inner workings of his music.
“The same goes for his lyrics,”
Sheed writes, “which seem not so
much brilliant as inevitable. . . .
‘Everybody’s doing it,’ but of
course they are. It says so in the
tune.” Sheed notes that composers
as diverse as Richard Rodgers,
George Gershwin and Cy Coleman
remarked, in one way or another,
that they had more songs in their
heads than they could ever write
down. “So perhaps,” Sheed writes,
“songwriting can best be defined
as the wonderful ability to go in
there and get them.”
Reading Lyrics
By Robert Gottlieb and Robert
Kimball (2000)
2
HERE IS a delightfully
idiosyncratic, opinionated
catalog of the best lyrics of
popular songs from 1900 to 1975,
stretching from George M. Cohan
to Fred Ebb and Dave Frishberg.
Robert Gottlieb, the veteran book
and magazine editor, and Robert
Kimball, the eminent musicaltheater scholar, cull the cream of
the lyricist’s art, from “Give My
Regards to Broadway” to “Peel Me
a Grape.” The authors provide
Everything Was Possible
By Ted Chapin (2003)
4
BROADWAY BABY The original 1971
production won seven Tony awards.
AS A COLLEGE STUDENT,
Ted Chapin, the longtime
head of the Rodgers &
Hammerstein Organization, had a
worm’s eye view at the creation of
what was arguably the last musical
of the Golden Age. He was an
assistant on the Boston tryout of
“Follies” and kept a faithful diary
that 32 years later would become
what surely ranks as the best-ever
account of the blood, sweat and
tears that go into putting on a
Broadway show. It’s impossible to
read Mr. Chapin’s account of
typing up an original and nine
carbon copies of Stephen
Sondheim’s first manuscript for
JEFFREY MACMILLAN
The Phantom Atlas
FIVE BEST: A PERSONAL CHOICE
PHOTOFEST
Maps With Gaps
MR. PURDUM’S latest book is
‘Something Wonderful: Rodgers and
Hammerstein’s Broadway Revolution.’
“I’m Still Here” without feeling the
hair go up on your neck. “This one
was definitely a keeper,” Mr.
Chapin writes. “Little did I or any
of us know then that it would
become one of Sondheim’s most
performed songs, and one whose
sentiments, first typed that day by
a twenty-year-old gofer, would
continue to have resonance for
years to come.”
Easy to Remember
By William Zinsser (2000)
5
A DISTINGUISHED CRITIC
and teacher of writing,
William Zinsser was a
lifelong fan of the American
Songbook, and his survey of the
genre is a loving tribute,
punctuated with reproductions
from his own collection of vintage
sheet-music covers. The book is
largely a composer-by-composer
tour through the best of Tin Pan
Alley, Broadway and Hollywood,
but Zinsser is especially acute in
describing the form and mechanics
of popular song. “Because
traditional western music is
mathematical in its notation, it
insists on order,” he writes, “which
means, among other things, even
numbers. A 31-bar song would
leave us vaguely uneasy. So would
a 7-bar opening statement; our
metabolism has been conditioned
to need the full eight.” The miracle
of this rigid construction, Zinsser
notes, is that “thousands of
popular songs have been written,
their composers limited to 32 bars
and only 12 notes.” Now and then,
he acknowledges, “a song comes
along that reminds us of some
other song. But the remarkable
thing is how often we’re not
reminded of some other song. The
great composers never run out of
ways to put the notes together in a
pattern that makes us say, ‘Isn’t
that wonderful! I’ve never heard
anything like that before.’ ”
Best-Selling Books | Week Ended April 1
With data from NPD BookScan
Hardcover Nonfiction
TITLE
AUTHOR / PUBLISHER
Hardcover Fiction
THIS
WEEK
12 Rules for Life
1
Jordan B. Peterson/Random House Canada
LAST
WEEK
3
TITLE
AUTHOR / PUBLISHER
This Is Me: Loving the Person
Chrissy Metz/Dey Street Books
THIS
WEEK
LAST
WEEK
TITLE
AUTHOR / PUBLISHER
6
New
Dog Man and Cat Kid (Dog Man 4)
Dav Pilkey/Graphix
Methodology
THIS
WEEK
LAST
WEEK
1
2
TITLE
AUTHOR / PUBLISHER
THIS
WEEK
LAST
WEEK
Mother Bruce
Ryan T. Higgins/Disney-Hyperion
6
4
The Getaway (DWK #12)
Jeff Kinney/Amulet Books
7
—
Embraced: 100 Devotions to Know
Lysa TerKeurst/Thomas Nelson
2
New
Dear Madam President
7
Jennifer Palmieri /Grand Central Publishing
New
Red Alert: An NYPD Red Mystery
2
New
James Patterson & Marshall Karp/Little, Brown & Company
Secret Empires
Peter Schweizer/Harper
3
1
World of Warcraft Chronicle Vol. 3
8
Blizzard Entertainment/Dark Horse Books
New
The Disappeared
C. J. Box/G.P. Putnam’s Sons
3
New
Russian Roulette: The Inside Story
Michael Isikoff & David Corn /Twelve
4
2
StrengthsFinder 2.0
Tom Rath/Gallup Press
9
10
Pete the Cat: Big Easter Adventure
James Dean/HarperTorch
4
8
Accidental Heroes
Danielle Steel/Delacorte Press
9
1
The Subtle Art of Not Giving a F*ck
Mark Manson/HarperOne
5
6
The Story of Jesus
Jane Werner Watson/Golden Books
10
—
God Gave Us Easter
5
Lisa Tawn Bergren/Waterbrook Press
7
Last Week Tonight with John Oliver
Jill Twiss/Chronicle Books
10
New
THIS
WEEK
LAST
WEEK
THIS
WEEK
LAST
WEEK
THIS
WEEK
LAST
WEEK
Nonfiction E-Books
TITLE
AUTHOR / PUBLISHER
Nonfiction Combined
All-American Murder
1
—
James Patterson & Alex Abramovich/Little, Brown & Co.
12 Rules for Life
2
Jordan B. Peterson/Random House Canada
8
Tiger Woods
3
New
Jeff Benedict & Armen Keteyian/Simon & Schuster
Walking with God…
4
Timothy Keller/Penguin Publishing Group
—
TITLE
AUTHOR / PUBLISHER
Fiction E-Books
TITLE
AUTHOR / PUBLISHER
Green Eggs and Ham
8
3
Dr. Seuss/Random House Books for Young Readers
Fiction Combined
THIS
WEEK
LAST
WEEK
12 Rules for Life
1
Jordan B. Peterson/Random House Canada
4
Red Alert: An NYPD Red Mystery
1
New
James Patterson & Marshall Karp/Little, Brown & Company
The Easter Story
Patricia A. Pingry/Worthy Publishing
2
—
The Disappeared
C. J. Box/Penguin Publishing Group
Last Week Tonight with John Oliver
Jill Twiss/Chronicle Books
3
3
Shock Wave
3
Clive Cussler/Little, Brown Book Group
Secret Empires
Peter Schweizer/Harper
4
1
Savage Prince
Meghan March/Meghan March
Hardcover Business
Red Alert: An NYPD Red Mystery
1
New
James Patterson & Marshall Karp/Little, Brown & Company
A Wrinkle in Time
Madeleine L’Engle/Square Fish
2
1
—
The Disappeared
C. J. Box/G.P. Putnam’s Sons
3
New
4
New
Ready Player One
Ernest Cline/Broadway Books
4
2
New
TITLE
AUTHOR / PUBLISHER
NPD BookScan gathers point-of-sale book data from
more than 16,000 locations across the U.S.,
representing about 85% of the nation’s book sales.
Print-book data providers include all major
booksellers (now inclusive of Walmart) and web
retailers, and food stores. E-book data providers
include all major e-book retailers. Free e-books and
those sold for less than 99 cents are excluded. The
fiction and nonfiction lists in all formats
include adult, young adult, and juvenile
titles; the business list includes only
adult titles. The combined lists track
sales by title across all print and e-book
formats; audio books are excluded. Refer questions
to Peter.Saenger@wsj.com.
TITLE
AUTHOR / PUBLISHER
StrengthsFinder 2.0
Tom Rath/Gallup Press
THIS
WEEK
LAST
WEEK
1
1
Emotional Intelligence 2.0
2
Travis Bradberry & Jean Greaves/TalentSmart
2
Principles: Life and Work
Ray Dalio/Simon & Schuster
3
6
8
Extreme Ownership
Jocko Willink/St. Martin’s Press
4
4
Easy 5-Ingredient Healthy Cookbook 5
Toby Amidor, MS, RD, CDN/Callisto Media Inc.
New
Baby Touch and Feel: Animals
DK/DK Publishing
5
—
The Return of Rafe Mackade
Nora Roberts/Silhouette
5
—
Dog Man and Cat Kid (Dog Man 4)
Dav Pilkey/Graphix
5
—
Total Money Makeover
Dave Ramsey/Thomas Nelson
5
7
Dear Madam President
6
Jennifer Palmieri/Grand Central Publishing
New
Russian Roulette: The Inside Story
Michael Isikoff & David Corn /Twelve
6
2
The Great Alone
Kristin Hannah/St. Martin’s Press
6
5
The Great Alone
Kristin Hannah/St. Martin’s Press
6
5
The Five Dysfunctions of a Team
Patrick Lencioni/Jossey-Bass
6
9
Embraced: 100 Devotions
Lysa TerKeurst/Thomas Nelson
7
New
Ready Player One
Ernest Cline/Crown/Archetype
7
—
Twice Bitten: An Argeneau Novel
Lynsay Sands/Avon Books
7
New
The Energy Bus
Jon Gordon/Wiley
7
—
The Subtle Art of Not Giving a F*ck
Mark Manson/HarperOne
8
7
Twice Bitten: An Argeneau Novel
8
Lynsay Sands/HarperCollins Publishers
New
Accidental Heroes
Danielle Steel/Delacorte Press
8
2
Crushing It!
Gary Vaynerchuk/HarperBusiness
8
8
A Brief History of Time
Stephen Hawking/Bantam
9
—
River’s End
9
Nora Roberts/Penguin Publishing Group
—
Simon vs. the Homo Sapiens
9
Becky Albertalli/Balzer & Bray/HarperTeen
9
Don’t Bullsh*t Yourself!
Jon Taffer/Portfolio
9
5
Camino Island
John Grisham/Dell
7
Skin in the Game
10
Nassim Nicholas Taleb/Random House
—
Secret Lives of the First Ladies
Cormac O’Brien/Quirk Publishing
7
—
Flags of Our Fathers
8
—
J. Bradley & R. Powers/Random House Publishing Group
The Year of Less
Cait Flanders/Hay House, Inc.
9
—
Educated
10
7
Tara Westover/Random House Publishing Group
Dear Madam President
10
Jennifer Palmieri/Grand Central Publishing
New
Hot and Badgered
Shelly Laurenston/Kensington
10
New
10
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | C11
* * * *
AUSTIN HARGRAVE FOR THE WALL STREET JOURNAL
REVIEW
WEEKEND CONFIDENTIAL: ALEXANDRA WOLFE
David Chang
LAST YEAR, chef David Chang
went on a global “taco crawl” to
more than a dozen places around
the world as part of his new documentary series, “Ugly Delicious,”
which is currently streaming on
Netflix. He and his cast sampled the
Mexican staple everywhere from
the Yucatán to Copenhagen.
One of his favorite tacos came
from a food truck in L.A. It featured
ingredients usually associated with
the Middle East—shawarma (meat
sliced from a turning spit) and a
thick, pitalike flour tortilla. In the
show, he traced the history of these
“Arab tacos” back to the city of
Puebla, about 80 miles southeast of
Mexico City. There, Mr. Chang
learned, immigrants from the Middle East helped to create the tacos
decades ago.
He came across plenty of other
cross-cultural connections in exploring other iconic dishes for the
show. In Houston, he tasted VietCajun crawfish, a combination of a
New Orleans Creole dish with Vietnamese seasoning. In Italy, he noted
how much tortellini look like wontons. “Every type of food came from
somewhere else,” he says. “There’s
nothing that just sprouted from
someone’s head.”
Mr. Chang, 40, is best known for
founding the Momofuku Group,
with over a dozen Asian-inspired
restaurants around the world, as
well as six locations of the fast-casual chain Fuku and 13 Milk Bar
dessert stores. He’s still expanding
his restaurant empire, which offers
indulgent, sometimes oddball dishes
such as kimchi bacon burgers and
his much-imitated barbecued porkbelly buns. The chef and his restaurants have won five James Beard
Awards, and one of the New York
locations, Momofuku Ko, has carried two Michelin stars since 2009.
“I think Momofuku has always
tried to be a merger of things that
don’t always go together,” Mr.
Chang says. As for his show, “when
you say the word ‘ugly delicious’ it
made sense.” Many of his favorite
dishes, such as curries and noodles,
look ugly, he says.
The show’s eight thematic episodes range from fried chicken to
pizza to barbecue. The series asks
why some cultures and not others
readily assimilate new foods and
dishes from afar. An area’s tradition
and its immigration history are major factors, Mr. Chang discovered.
New Orleans, he found, was hesitant to accept new flavors and experimentation, in part thanks to a
proud Creole culinary past. Houston, on the other hand, embraced
waves of immigrants and their
cooking techniques.
For Mr. Chang, such stories have
The chef on his Netflix show, mash-up
cuisines and the stress of expansion
a strong personal resonance. The
son of Korean immigrants, he grew
up outside of Washington, D.C., in
suburban Virginia. His mother made
fried rice and chicken soup and his
grandmother would make Korean
dumplings, he remembers. His father used to take him to local pho
and ramen spots, where Mr. Chang
would watch in wonder as the chefs
worked the dough and pulled it into
’Every type
of food came
from somewhere
else,’ he says.
long strands. “That’s how my dad
expressed love to me, by going out
to eat,” he says.
His parents were in the restaurant business for a time, but their
two establishments served American fare— salads, soups and steaks.
Mr. Chang never thought he would
grow up to be a chef. “I knew restaurants were in my dad’s blood,”
he says. “I didn’t understand until
later that it could be a profession.”
Mr. Chang was a champion golfer
in high school, and his father
wanted him to try being a profes-
sional, but he didn’t enjoy the
sport. Unsure of a career, he spent
two years after college teaching
English in Japan, where he fell in
love with the local ramen shops. He
kept copious notes of what he saw
there, right down to the flavorings
in the first slurp of soup.
When he returned to the U.S., he
took a desk job in finance—and
hated it. He quit after six months
and enrolled at the French Culinary
Institute (now the International Culinary Center) in New York, with
stints afterward at high-end restaurants in the city such as Craft and
Café Boulud.
When he finally decided to strike
out on his own, it was to embrace
the Asian food of his childhood: “I
think part of it is accepting being
me.” He now appreciates his own
culture more, he says, partly because he “ran away from it to begin
with.”
In 2004, Mr. Chang started Momofuku Noodle Bar as a casual ramen spot. In six months, once he
adjusted the menu to his liking,
lines started forming out the door.
His restaurant empire has expanded
relentlessly since then.
Critics heaped praise on Mr.
Chang’s early restaurants but have
not been as enthusiastic about one
recent venture. A 2016 review of his
new Italian-inflected restaurant by
New York Times food critic Pete
Wells was headlined: “David
Chang’s Magic Shows a Little
Wear.”
Mr. Chang responded to the review in a New Yorker profile of Mr.
Wells, saying, “He’s being a [expletive] bully.” These days, Mr. Chang
thinks that customer reviews on
services such as Yelp carry just as
much weight as the opinions of professional critics.
Mr. Chang has experienced some
failures as his business has expanded. Last year, he attempted to
launch his own meal-preparation
and delivery service, and a few
years before that he invested in another. Both have since closed. Mr.
Chang has said that delivery services were difficult to get right.
But the chef is still creating new
concepts for restaurants and figuring out where to start them. Majordomo, which opened earlier this
year in L.A., offers creative takes on
basics and recently included short
ribs with beef rice and shiso rice
paper, and macaroni and chickpeas
with black pepper.
Mr. Chang remains committed to
experimenting and expanding. “It’s
this giant thing, and I don’t know
how it grows, but I’m sure it’s going
to grow.” But he worries, too: “Every day feels like it’s all going to
end simultaneously.”
MOVING TARGETS: JOE QUEENAN
I WAS hoping that the big tax reform just signed into law would
bring some fast relief by simplifying this year’s forms as well. But
nope, the same old problems are
rearing their ugly head.
What annoys me most is that
the IRS will still not accept checks
of more than $100 million in payment for taxes. Form 1040 ES/V
OCR, the one that self-employed
individuals fill out, warns taxpayers not to send in a check of $100
million or more. This is probably
because IRS pocket calculators
don’t go that high. So if you owe
more than $100 million in taxes,
the IRS says to send in two or
more checks, each for less than
$100 million. Otherwise they’re going to return your check uncashed.
Like a lot of self-employed people, I lose track of my income. I
earn an extra $45 million here, an
extra $72 million there, but I forget to write it down. Then, come
Tax Day: kerpowee!!
This created huge problems a
couple of years ago when I unexpectedly won $365 million playing
fantasy-league badminton and
found myself owing more than
$100 million in estimated taxes. I
grudgingly sent in the check for
$100 million, not knowing the new
policy. The check got sent back to
me, and I had to write two new
checks and pay a substantial
penalty for filing estimated
taxes late.
I swore that I wouldn’t let
that happen to me again. But
when I unloaded my mint condition set of Iron Butterfly LP’s on
eBay, it brought in hundreds of
millions of dollars in unanticipated
income and once again that put me
over the $100 million threshold. I
didn’t realize this until 10 minutes
before last year’s filing deadline.
Unfortunately, I only had one
check left in my checkbook, which
meant that I was again going to
get clobbered with a huge late-fil-
An extra $45
million in
income here, an
extra $72
million there.
ing penalty. So I rushed down to
the local Quik Mart to get two
money orders, one for
$98,999,999.21, the other for
$1,000,000.79. But the Quik Mart
guy told me that he couldn’t print
a money order that large.
“Why not?” I demanded. “We
only get $1.25 for each money order, no matter the size,” he replied.
“So there’s just no mileage in it for
us. Tell you what I can do; I’ll print
up a hundred money orders for a
million bucks apiece. That way I
can make a few clams off the
deal.”
I wrote the guy a check for $100
million, covering the service
charge with cash. But two of the
money orders got lost in the mail,
and once again I got hammered
with late filing fees.
So here I am again, facing the
same IRS policy. They still won’t
take a check for $100 million. Next
year, I don’t want to go through
this again. The only solution is to
whittle down my 2018 income so
that I pay less than $100 million in
taxes.
I’ve started out by giving away
$350 million to charities: the Red
Cross, Doctors Without Borders,
the New York Jets. Then I plan to
write off $35 million in tips because I always get my Porsche valeted. And I’m giving back the $39
million I won when I picked Michigan to get to the Final Four. I’m
also refusing the $234 million in
royalties I earned off my last book,
“Aw, Shucks: Why Cornfields Still
Matter.”
In all likelihood, that still won’t
do the trick. So OK, I’ll bite the
bullet and send in two checks for
$50 million next year. But I’m not
happy about it. With as many
problems as this society has, you’d
think the IRS would be tickled pink
to get a check for $100 million every year. Not these guys. And then
they wonder why everybody hates
them.
NISHANT CHOKSI
My $100 Million Problem With the IRS
.
C12 | Saturday/Sunday, April 7 - 8, 2018
THE WALL STREET JOURNAL.
* ***
REVIEW
HISTORICALLY SPEAKING:
AMANDA FOREMAN
GIJSBERT HANEKROOT/GETTY IMAGES
THE BATTLES
OF SPRINGTIME
LOU REED performing in
Amsterdam in May 1974.
PLAYLIST:
MARTHA GRIMES
An Adult
Education
In Rock
A veteran crime novelist
became infatuated
with a Lou Reed song,
‘Caroline Says II’
Martha Grimes, 86,
is the author of
more than 30 crime
novels and the recipient of the 2012
Mystery Writers of America’s
Grand Master Award. She is
the author of “The Knowledge”
(Atlantic Monthly Press). She
spoke with Marc Myers.
Growing up, I knew zilch about
rock ’n’ roll. When rock became popular in the mid-1950s,
I was already in my early 20s.
Les Paul and Mary Ford were
about it for me.
My first exposure to rock
came as a parent. In the 1970s,
I heard it coming through the
walls of my son Kent’s bedroom in Silver Spring, Md. Every so often, I’d tell him to
turn it down. What made me
curious was Kent’s fascination
with the Grateful Dead. It was
intense and lasted for so long.
He used to follow them from
concert to concert. I wasn’t
worried, just intrigued.
In the 1980s, while writing
my mystery “The Old Silent,”
I needed rock songs for one of
my characters. So I went out
and bought a bunch of guitar
magazines. That’s where I discovered Lou Reed. The more I
listened to Reed’s music, the
more he captivated me. His
songs seemed drug-addled
and lethargic, as if delivered
in slow motion. But within
that sleepwalking feel, there
was marvelous poetic play.
‘WHEN BIRDS do
sing, hey ding a ding,
ding; Sweet lovers
love the spring,”
wrote Shakespeare.
But the season has a darker side
as well. As we’re now reminded
each year when the Taliban anticipate the warm weather by announcing their latest spring offensive in Afghanistan, military
commanders and strategists have
always loved the season, too.
The World War I poet Wilfred
Owen highlighted the irony of
this juxtaposition—the budding
of new life alongside the massacre of those in life’s prime—in
his famous “Spring Offensive”:
“Marvelling they stood, and
watched the long grass swirled /
By the May breeze”—right before
their deaths.
The pairing of rebirth with violent death has an ancient history.
In the 19th century, the anthropologist James George Frazer identified the concept of the “dying and
rising god” as one of
the earliest cornerstones of religious belief. For new life to appear in springtime,
there had to be a death
or sacrifice in winter.
Similar sacrifice-and-rejuvenation myths can be
found among the Sumerians, Egyptians, Canaanites and Greeks.
Mediterranean and
Near Eastern cultures
saw spring in this dual
perspective for practical reasons as well. The agricultural calendar revolved around
wet winters, cool springs and
very hot summers when almost
nothing grew except olives and
figs. Harvest time for essential
cereal crops such as wheat and
barley took place in the spring.
The months of May and June,
therefore, were perfect for
armies to invade, because they
could live off the land. The Bible
says of King David, who lived
around 1,000 B.C., that he sent
Joab and the Israelite army to
fight the Ammonites
“in the spring of the
year, when kings normally go out to war.”
It was no coincidence
that the Romans named
the month of March after Mars, the god of
war but also the guardian of agriculture. As
the saying goes, “An
army fights on its stomach.” For ancient Greek
historians, the rhythm
of war rarely changed:
Discussion took place in
the winter, action began
in spring. When they
referred to a population
“waiting for spring,” it
was usually literary
shorthand for a people living in
fear of the next attack. The military campaigns of Alexander the
Great (356-323 B.C.) into the Balkans, Persia and India began with
a spring offensive.
In succeeding centuries, the
seasonal rhythms of
Europe, which were
very different from
those of warmer
climes, brought about
a new calendar of warfare. Europe’s reliance
on the autumn harvest
ended the ancient
marriage of spring and
warfare. Conscripts
were unwilling to
abandon their farms
and fight in the
months between planting and harvesting.
This seasonal difficulty would
not be addressed until Sweden’s
King Gustavus Adolphus
(1594-1632), a great military innovator, developed principles for
the first modern army. According
to the British historian Basil Liddell Hart, Gustavus made the crucial shift from short-term conscripts, drawn away from
agricultural labor, to a standing
force of professional, trained soldiers on duty all year round, regardless of the seasons.
Gustavus died before he could
Modern
spring
assaults
are meant
to rout an
enemy
quickly.
THOMAS FUCHS
fully implement his ideas. This
revolution in military affairs fell
instead to Frederick the Great,
king of Prussia (1712-1786), who
turned military life into a respectable upper-class career choice and
the Prussian army into a mobile,
flexible and efficient machine.
Frederick believed that a successful army attacks first and
hard, a lesson absorbed by Napoleon a half century later. This
meant that the spring season,
which had become the season for
drilling and training in preparation for summer campaigning, became a fighting season again.
But the modern iteration of
the spring offensive is different
from its ancient forebear. Its purpose isn’t to feed an army but to
incapacitate enemies before they
have the chance to strike. The
strategy is a risky gambler’s
throw, relying on timing and psychology as much as on strength
and numbers.
For Napoleon, the spring offensive played to his strength in being able to combine speed, troop
concentration and offensive action in a single, decisive blow.
Throughout his career he relied
on the spring offensive, beginning
with his first military campaign in
Italy (1796-7), in which the French
defeated the more-numerous and
better-supplied Austrians. His fi-
nal spring campaign was also his
boldest. Despite severe shortages
of money and troops, Napoleon
came within a hair’s breadth of
victory at the Battle of Waterloo
on June 18, 1815.
The most famous spring campaign of the early 20th century—
Germany’s 1918 offensive in
World War I, originated by Gen.
Erich Ludendorff—reveals its limitations as a strategy. If the
knockout blow doesn’t happen,
what next?
At the end of 1917, the German
high command had decided that
the army needed a spring offensive to revive morale. Ludendorff
thought that only an attack in the
Napoleonic mode would work:
“The army pined for the offensive...It alone is decisive,” he
wrote. He was convinced that all
he had to do was “blow a hole in
the middle” of the enemy’s front
and “the rest will follow of its
own accord.” When Ludendorff’s
first spring offensive stalled after
15 days, he quickly launched four
more. Lacking any other objective
than the attack itself, all failed,
leaving Germany bankrupt and
crippled by July.
In this century, the Taliban
have found their own brutal way
to renew the ancient tradition—
with the blossoms come the
bombs and the bloodshed. .
At some point, I became fixated on Reed’s “CAROLINE
SAYS II,” from his 1973 “Berlin” album. His Caroline character was a mystery.
The ballad opens with
Reed’s relaxed acoustic guitar.
Then his vocal begins: “Caroline says / as she gets up off
the floor / Why is it that you
beat me / it isn’t any fun / Caroline says / as she makes up
her eyes / You ought to learn
more about yourself / think
more than just I.”
Starting a song with an
abused woman getting up off
the floor was startling. So
much was left to the listener’s
imagination: Who beat Caroline? Why was she trying so
rationally to help her attacker
resolve his emotional problems? Was her attacker still in
the room?
At one point during my
Reed exploration, my son,
Kent, stood in the rain for an
hour to buy us tickets to see
Reed in concert. All of those
questions I used to ask Kent
about why he found the Dead
so captivating—and here I
was excited at a Lou Reed
concert.
I finally realized that you
can’t explain how you feel
about rock. It just sort of takes
you over.
BENJAMIN RASMUSSEN FOR THE WALL STREET JOURNAL
A sleepwalking
feel, but marvelous poetic play.
The DIY
Robot
Assistant
MEET MISTY, a robot
that users are meant to
be able to program and
re-program without any
expertise. The 14-inch
machine runs on a simple
software language similar to those used to teach
computer coding to children. It is the first offering
from Misty Robotics, spun off last year from
Sphero, maker of the toy version of the Star Wars
robot BB-8 (and of previous robotic rolling balls on
Oficial Sponsor of The Wall Street Journal’s The Future of Everything
which it was based).
Beta testers are working with the handmade
Misty I Developer Edition, which was made available
to them in March for $1,499, to teach it activities
that range from following people around offering
schedule reminders to acting in a robot version of a
soap opera. It’s not clear yet what skills a mass-market version would have—or not have. But later this
year the company plans to release factory-made
Misty II, pictured above, to consumers; no price has
been announced. —Leigh Kamping-Carder
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | C13
* * * *
PLAY
NEWS QUIZ: Daniel Akst
Provided by the
A. Tax evaders in Italy,
Spain and Greece
B. The global auto industry
C. Some big American tech
companies
D. Giant pharmaceutical
firms
1. Winnie Madikizela-Mandela,
who fought for
the rights of
black
South
Africans,
died at
81. Where
was she
born?
on the coach’s workout for today.
Maximization
Use the digits 1, 2, 3 and 4 once and only
once to make a mathematical expression.
You may use +, -, ×, ÷, exponents, decimal
points and parentheses. No roots, factorials,
repeating decimals or other mathematical
functions are permitted.
What is the largest mathematical
expression possible using these rules?
A. Donte Moncrief
B. Donte DiVincenzo
C. Dante Alighieri
D. Danté Exum
2. Three U.S. senators want
to know why the price of a
40-year-old cancer drug has
risen 1,400%. Which drug do
they mean?
7. In China, Alibaba is
disrupting auto retailing
with what new technique?
A. Lomustine
B. Lomacil
C. Lanarex
D. Langoustine
LUCI GUTIÉRREZ
For previous weeks’ puzzles, and to discuss strategies with other solvers, go to WSJ.com/puzzle.
A. Honesty
B. Car vending machines
C. Home delivery of vehicles ordered online
D. Do-it-yourself assembly
3. What could be the next big
thing in animal husbandry?
A. Multilingual roosters
B. Smart collars for cows
C. Online mating
D. Divorce
8. Cereal makers are
abandoning the low-sugar
approach to get sweet again.
Which of these is an actual
new offering?
4. As a challenge, young
people are sleeping someplace
offbeat (and uncomfortable).
Where?
A. Chocolate Peanut Butter
Cheerios
B. Lucky Charms Frosted
Flakes
C. Cinnamon Toast Crunch
shredded wheat
D. All of the above
A. Classrooms
B. Subways
C. Atop water towers
D. Overnight in chain stores
and restaurants
National Museum of Mathematics
Two puzzles with numbers are
6. Villanova beat Michigan
to win the men’s NCAA
basketball tournament.
Who starred for the
winning Wildcats?
A. Brandfort
B. Bityi
C. Bizana
D. Boipatong
FROM TOP: CHRISTOPHER FURLONG/GETTY IMAGES; ISTOCK
VARSITY MATH
From this week’s
Wall Street Journal
Multiplication
Table
Each digit in the
multiplication table at
right represents a digit
other than itself.
Create a new table
with correct digits.
+
SOLUTIONS TO
LAST WEEK’S
PUZZLES
turn to page C4.
4
8
1
31
71
51
29
2
71
4
30
76
4
51
30
67
15
8
29
76
15
28
Way to Go!
Spell Weaving
y
H E R A
E M I L
B U S I
I T
O H N O
Z A G
I N S U
C O U P
K I N D
A
P A R T
A L O E
S O B
S T E E
A
S H O R
C A B L
O R E
T A R H
T R O I
S E N D
In Maximizing
Links, the maximum
number of links is 9.
For a diagram of the
solution to Seven
Points, go to
WSJ.com/puzzle.
To see answers, please
2
Learn more about the National Museum of Mathematics (MoMath) at momath.org
Varsity Math
5. European Union antitrust
chief Margrethe Vestager has
become the de facto global
regulator—of what?
1
L D
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THE JOURNAL WEEKEND PUZZLES Edited by Mike Shenk
1
2
3
4
5
17
6
8
11
28
32
35
36
41
42
49
56
60
44
69
57
58
71
87
97
73
74
84
89
93
103
108 109
111
112
115
116
119
104 105 106
110
113
120
85
95
100 101 102
107
76
90
94
99
75
80
83
88
92
98
67
79
82
48
63
72
81
47
54
59
66
78
91
46
53
62
70
86
45
52
65
77
21
33
51
61
16
38
43
64
15
29
37
50
55
14
25
31
40
13
20
27
34
12
24
30
96
10
19
23
26
68
9
18
22
39
7
114
117
118
121
122
Chewing the Scenery | by Pancho Harrison
Across
1
5
9
13
17
18
19
21
22
25
26
27
28
30
31
32
34
36
38
39
46
49
Down
1 Belle’s love
2 “Oklahoma!”
aunt
3 City of northern
France
4 Jell
5 Badger
persistently
6 Unmatched
7 Make straight
8 ___ Park
(Edison base)
9 Alum
10 Encino neighbor
11 Yellowfin tuna
12 Wild hurry
13 Surgery aids
14 Brownish green
15 Fight site
16 Wan
20 English network,
informally, with
“the”
21 Bellowed
23 It’s often
underfoot
24 Energy drink
additive
29 “It’d be my
pleasure!”
31 1998 Tonywinning comedy
33 Choose not to
participate
35 Classify
37 Code-cracking
org.
39 Exploit
1
L2
21
C 22 U
40
L 41
60 S
79
W3
U4
23
T5
P 24 G
G 42 D
61
S 80 U 81
D
P7
O8
F 10
R
11
H 12
V 13
Q 14
25
F 26 A 27 Q 28 W 29
S
30 B 31
E 32
L 33 D 34 M
J 47 U 48 T 49 O
50 E 51
S
43 Q 44 A 45 M 46
T 62 N 63 U
P 82
6
I 83
64 R 65 A 66 W 67
C 84 B
85
L 86
161 H
52 H 53
E
17
I 54 R 55 D 56
C 57
89 D 90 M 91
K 92 H 93 N 94 Q 95
L
73 N 74 R 75 H 76
I 113 A
170 O 171 A 172 F
185 M
200 J 201 C 202W
205 F 206 I 207 D 208 O 209 A 210 H 211 B 212 E
T 20 K
I 38 V 39 H
B
58
F 77
P
134 J 135 U
150 C 151 B 152 U 153 Q 154 S
179 P 180 F 181 H 182 G 183 I 184 S
F 96
J 19
V 78
F 59
L
T
97 A 98 S 99 R
114 F 115 Q 116 E 117 U 118 B 119 C 120 W
130 P 131 T 132 H 133 G
146 R 147 T 148 J 149 W
18
K 37
J 87 A 88 W
110 K 111 S 112
I
35 N 36
D 72
162 J 163 R 164 W 165 B 166 N 167 U 168 G 169 C
203 R 204 V
N 16
69 M 70 P 71
124 J 125 V 126 F 127 M 128 I 129 Q
139 L 140 K 141 N 142 G 143 M 144 D 145 H
160 T
S 15
B 68 Q
107 H 108 O 109 T
100 B 101 W 102 D 103 U 104 L 105 V 106 M
121 H 122 D 123 N
B9
136 C 137 O 138 S
155 E 156 K 157 L 158 N 159 F
173 T 174 U 175 D 176 L 177 B 178 E
186 J 187 R 188 B 189 K 190 V 191 W 192 U 193 C 194 Q
195 D 196 N 197 I 198 O 199 T
213 T 214 S 215 U 216 Q 217 N
Acrostic | by Mike Shenk
To solve, write the answers to the clues on the
numbered dashes. Then transfer each letter to the
correspondingly numbered square in the grid to spell
a quotation reading from left to right. Black squares
separate words in the quotation. Work back and
forth between the word list and the grid to complete
the puzzle. When you’re finished, the initial letters of
the answers in the word list will spell the author’s
name and the source of the quotation.
A. Sweaters and the
like
____ ____ ____ ____ ____ ____ ____ ____
B. Clifford Odets play
set in the Bronx
(3 wds.)
____ ____ ____ ____ ____ ____ ____ ____
C. Outset; beginning
point
____ ____ ____ ____ ____ ____ ____ ____ ____
D. Comprehensive
____ ____ ____ ____ ____ ____ ____ ____
113 171 209 87 97 26 44 65
118 30 151 177 57 211
8
84
____ ____ ____ ____
100 165 67 188
119 136 193 83 169 150 201 56
207 122 89
5
71
21
33 175 195
____ ____ ____ ____
42 144 55 102
L. Not properly
aligned; unbalanced;
broken (3 wds.)
____ ____ ____ ____ ____ ____ ____ ____
M. Volcanic glass used
by the Aztecs and
Mayas for blades
____ ____ ____ ____ ____ ____ ____ ____
N. NBA’s Rookie of the
Year in 2008 and
MVP in 2014
(2 wds.)
____ ____ ____ ____ ____ ____ ____ ____
O. Rich ring-shaped
cake usually soaked
in rum
____ ____ ____ ____ ____ ____ ____
P. Material carried to
improve stability
____ ____ ____ ____ ____ ____ ____
Q. Madonna album
awarded Best Pop
Vocal Album at the
1999 Grammys
(3 wds.)
____ ____ ____ ____ ____ ____ ____ ____
R. Prominent in an
unwelcome way
____ ____ ____ ____ ____ ____ ____ ____ ____
S. Unexpected and
often unfortunate
development
(3 wds.)
____ ____ ____ ____ ____ ____ ____ ____
T. Dealers in men’s
clothing and
accessories
____ ____ ____ ____ ____ ____ ____ ____
U. 1982 #1 hit duet by
Paul McCartney and
Stevie Wonder
(3 wds.)
____ ____ ____ ____ ____ ____ ____ ____
59 32 40 176 139 85
1
104
____ ____
157 72
90 69 106 45 34 127 185 143
15 217 35 141 166 123 196 93
____ ____ ____
158 62
49
7
179 23
81
96 70
115 27 194 13
6
130
94 216 153 68
____ ____
129 43
____ ____ ____ ____ ____ ____ ____
F. Symbolist painter
born in a town
north of Oslo
(2 wds.)
____ ____ ____ ____ ____ ____ ____ ____
G. Setting for the
annual Henley
Royal Regatta
____ ____ ____ ____ ____ ____
H. Product that its
creator originally
packaged in
discarded cologne
bottles (2 wds.)
____ ____ ____ ____ ____ ____ ____ ____
____ ____ ____ ____ ____ ____ ____ ____ ____
V. Contemptible
person; stoolie
(2 wds.)
____ ____ ____ ____ ____ ____ ____
I. Pistols, carbines
and rifles, e.g.
(2 wds.)
____ ____ ____ ____ ____ ____ ____ ____ ____
W. Women’s garment
styled after a men’s
garment
____ ____ ____ ____ ____ ____ ____ ____
J. British rocker
whose 2014
autobiography was
titled “Dancing
With Myself”
(2 wds.)
K. Attracts, as
customers (2 wds.)
____ ____ ____ ____ ____ ____ ____
155 116 178 16
180 9
31
50 212
126 205 58 172 159 95
____ ____ ____
76 114 25
24
41 182 133 142 168
39 121 11 107 52 210 92 145
____ ____ ____ ____
161 75 181 132
128 206 17
82 112 53 197 183 37
162 148 46 124 200 86
18 134 186
140 189 156 91 110 36 20
73
198 170 208 137 108
E. Instrument for
Klaus Thunemann
or Judith LeClair
203 64 146 74 163 10
29 60 111 138 214 14
99 54 187
79
51
____ ____ ____
98 154 184
147 61 173 199 48 109 19
78
____ ____ ____ ____
131 160
167 152 103 135 215 192
3
4
213
63
____ ____ ____ ____ ____
80 117 47 174 22
12 125 105 204 38 190 77
149 88 66 202 101 191 28
2
____ ____
164 120
Get the solutions to this week’s Journal Weekend
Puzzles in next Saturday’s Wall Street Journal.
Solve crosswords and acrostics online, get pointers
on solving cryptic puzzles and discuss all of the
puzzles online at WSJ.com/Puzzles.
s
44
Ring award
Act the itinerant
Fat unit
Bloke
“On the
Waterfront”
director Kazan
Between jobs
Postsurgical
program, briefly
Bow on screen
The mischievous
actor winked at
the audience and
delivered an ___
Levels
Greek goddess
of the moon
Move smoothly
Colonel’s charge
Lock
Shortly, to
Shakespeare
The actor
starred as twins
in the ___
Frosty coating
Loses it
Paid spots
The semiretired
actor was
appearing on
his ___
Sound right
after a knockout
punch
Flow stopper
Forgoes a
ceremony
50 Bundle of
84 Few and far
energy
between
52 Alexander Calder 86 Radical 1960s
org.
creation
87 Org.
55 “Off the Court”
autobiographer
89 The actor in the
wartime drama
56 Chimp’s
had a lot of ___
cousin
91 “___ live and
58 The actors in
breathe!”
the fast-moving
drama used ___
93 Tough question
60 Chinese path
95 Gas leak
indicator
61 Moved with
stealth
96 The actors
portraying pro
62 Ready for
athletes made
drawing
up the ___
63 Tyrannical
100 Wee
64 Occupied, as
103 Contending
a desk
107 Grinning
65 Young ___
measure?
(tots)
108 Genesis
66 Secretary of
110 President, at
state between
times
Madeleine and
Condoleezza
111 Writer Horatio
68 “The Crucible”
112 The actor
setting
portraying a
lowly GI made
71 Painter’s base
a ___
coat
115 Visibly upset
73 Overstimulated
116 Sticks
74 Emissionsmonitoring org.
117 Nothing more
than
77 The actors
with insignificant 118 Reminiscent of
roles complained 119 Maker of
about their ___
Xperia
79 Sorority letter
smartphones
80 Imitation
120 Setting setting
81 Recent arrival
121 Reach across
82 Clears
122 Rising setting
40 Rick’s love in
“Casablanca”
41 Neighborhood
between
Broadway and
the Bowery
42 Travel kit gizmo
43 Peer of the
theater
45 Spot for a thumb
drive
46 Creative Christian
47 Tyrol’s setting
48 Fit nicely
51 High-elev. spots
53 Rose garden pest
54 Fiber source
57 1980s First
Family
59 Least appropriate
for the
youngsters
61 Role for
Hitchcock
62 Lennon’s love
64 Balkan Wars
participant
65 Old atlas abbr.
67 Didn’t own,
maybe
68 IRS IDs
69 Mimicked
70 Scientific truths
72 Dictators rely on
them
73 Sharpen
74 Bring in
75 Brownish purple
76 Lets go
78 Accolades
79 Bolshevik’s foe
80 Yarn for
youngsters
83 Justice Fortas
85 Fodder crop
88 Feeder visitor
90 Powell’s frequent
co-star
91 It comes from
the heart
92 Yarn
94 They may use
pilots
96 Theater fixtures
97 Trendy diet
98 Instrument for
the Masses
99 Fosdick’s creator
101 Abounds
102 Pricey
104 Rival of ancient
Persia
105 Spots for
mufflers
106 Hail
109 Boss Tweed
mocker
110 Powerful engine
113 Prez after Harry
114 Piece-keeping
org.
.
C14 | Saturday/Sunday, April 7 - 8, 2018
THE WALL STREET JOURNAL.
* ***
REVIEW
‘COUNTRY DANCE’ fan,
left, made in Germany
around 1760. Below, an
ivory-and-silk fan based
on a painting from about
1730 by Nicolas Lancret.
ICONS
When Fans Were in the Air
In two 18th-century exhibitions, images of celebrity, myth and mourning; beckoning and bashing Casanova
BY J.S. MARCUS
FANS ARE GETTING their day in the sun.
At the de Young Museum, part of the Fine
Arts Museums of San Francisco, “Fans of the
Eighteenth Century” showcases 34 rare pieces
from such places as France and Italy, fashioned
out of everything from ivory and mother-ofpearl to silk and paper.
At the nearby Legion of Honor Museum, the
de Young’s sister institution, more fans of the
era unfold in a show that uses Giacomo Casanova, the Venetian rake and raconteur, as a
tour guide through the 18th century. His memoirs of more than a million words give readers
the lowdown on the high life of the time. The
museum evokes Casanova’s era through rococo
paintings and refined objects like porcelain
soup tureens and agate snuff boxes.
“Casanova: The Seduction of Europe” runs
through May 28, then travels to Boston’s Museum of Fine Arts from July 8 through Oct. 8.
The de Young fan display, shown in two rotations with the second beginning later this year,
runs through next spring.
“Now we see fans as an outdated accessory,” says Max Hollein, director and CEO of
San Francisco’s Fine Arts Museums, but back
in the 18th century “they were objects of artistic excellence and vitality.” He adds that the
arts of the 18th century were “intertwined”—
with a painter of porcelain often having the
same status as a painter of canvas.
The de Young’s Laura Camerlengo, associate
curator of costume and textile arts, says we
should think of fans as “luxurious necessities,”
often created out of semiprecious materials
and signaling the status and tastes of their
owners. Early in the 17th century, Italy was the
center of fan-making, she says. By
1700 France had taken the lead,
and then Protestants escaping
French intolerance spread the art
to England and elsewhere. A single fan, she adds, could involve
dozens of craftspeople—including
highly skilled artists who often
decorated fans for specific uses.
Ms. Camerlengo cites a colorful
1773 French calendar fan illustrating ecclesiastical events that would remind its owner of the
dates of holidays, like Pentecost, that varied
from year to year.
An English mourning fan, made of white paper and illustrated with black ink, was meant
to express sorrow for someone who has died.
On one side, the piece, created between 1760
and 1770, “shows a young man taking leave of
a young woman,” says Ms. Camerlengo, but
“flip it over, and there are two little graves
marked with crosses.”
Fan painters also used pictures on canvas
by well-known artists as sources, says Ms. Camerlengo. For example, around 1730, French
painter Nicolas Lancret, a follower of Antoine
Watteau, had depicted Marie-Anne de Cupis de
Camargo, a celebrated ballerina at the French
court, dancing in a forest setting for a group
of elegantly dressed admirers. Later, the motif
appeared on an ivory-and-silk fan, on view in
the de Young’s current rotation.
Similarly, the décor on a fan in the show’s
second rotation comes from “The Marriage of
Bacchus and Ariadne,” a high-baroque painting by the Italian Guido
Reni. Only a fragment survives of
the painting, which illustrates the
union of the god of wine and the
princess who helped the Greek
hero Theseus escape the Minotaur.
But admirers of Reni can consult
the hand fan to find out what the
original might have looked like.
As for the Casanova exhibition, it creates
whole scenes, combining a full range of fine and
decorative arts with mannequins wearing period
clothing. Among the highlights of the
200-item show is the reunion of
six related mythological paintings by François Boucher, a
rococo painter who
made them for a Parisian mansion. The
show has gathered
the paintings, lent
from museums in
Los Angeles and
Fort Worth, to display
them together, as originally
intended.
Casanova, the son of a Venetian ac-
Signals of
owners’
status and
taste.
tress, claimed that he had given up a career in
the church after making love to two teenage
sisters and went on to become a soldier, a lawyer’s assistant, a financier, a gambler and, of
course, an inveterate lover. The show conjures
up his era, crisscrossing Europe with objects
like an English card table and a French tricorn
hat trimmed with ostrich feathers.
The fans, on loan from Boston’s Museum of
Fine Arts, aren’t just for show. Fans, as the accounts of Casanova and others made clear, got
right to the heart of the language of love, says
Ms. Camerlengo. In his memoirs, Casanova
says women used fans to beckon to him or otherwise draw his attention, she adds. Once, a
woman even struck the author with her fan—
because he had failed to recognize her from a
previous encounter.
FINE ARTS MUSEUMS OF SAN FRANCISCO (2)
MASTERPIECE: ‘2001: A SPACE ODYSSEY’ (1968), BY STANLEY KUBRICK
AT 50, A QUIET FILM STILL MAKES A BIG BANG
IN 1968, America had its eyes turned to the
stars, but its extraterrestrial gaze had as much
to do with earthbound worries as excitement
about interplanetary exploration. Fears about
the Bomb had led to the signing of the Outer
Space Treaty the previous year, in which the
U.S. and U.S.S.R. agreed not to put weapons of
mass destruction into orbit. Looking to the future, President John F. Kennedy’s goal, set earlier in the decade, of landing a man on the moon
seemed within reach.
It was into this age of concern about mutually assured destruction and exhilaration at the
prospect of the “giant leap for mankind” that
Stanley Kubrick’s “2001: A Space Odyssey” was
released. Now a cornerstone of
cinema, the film’s place in history was far from certain. At
its premiere in April, walkouts
were plentiful and leading critics like Pauline Kael disdainful.
Kubrick’s film is a meditation on man’s enlightenment in
four movements. In the distant
past, a troop of hominids encounters a mysterious monolith and realizes
that the bones littering its habitat are more than
refuse, they’re tools—or weapons. They go to a
watering hole and attack another group with
their newfound technology. Victorious, the hominids’ leader tosses his primitive club into the
air and it transforms into a satellite.
In the second act, a scientist makes his way
to a moon base to investigate a recent discovery: another monolith. This time, the slab emits
a signal pointing to Jupiter. In the next section,
a group journeys toward the planet. Their guide,
an allegedly infallible AI named HAL, seems to much of his material that at the screening, close
be making errors in his calculations. When the to tears, the writer left at intermission. A simiastronauts decide to disconnect him, HAL goes lar fate befell composer Alex North. Kubrick
on a rampage, exterminating all of the crew but hired him to write an original score for the film,
one, Dave, who manages to give the computer- then replaced it entirely in postproduction.
ized killer a digital lobotomy.
We can be grateful that Kubrick’s vision for
Finally, as Dave approaches the signal’s coor- the movie, what he described as “a nonverbal
dinates, he’s pulled into a cosmological mael- experience,” survived. For all that’s come since
strom, zooming through space and time
in a surreal, kaleidoscopic sequence. He
suddenly finds himself in an ornate
room, and sees himself quickly age. At
the foot of his deathbed, another monolith looms over his decrepit body, and he
is transformed into a fetus in an amniotic sac, hovering over the Earth with
his eyes wide open.
It was a minor miracle such an odd
film even got made.
With a minimum of dialogue—the first line
doesn’t come until 25
minutes in, and the
2½-hour film has less
than 40 minutes of acA SCENE from ‘2001: A Space Odyssey’
tual
dialogue—and
confounding meaning,
“2001” was unlike anything “2001,” the experience of watching it is still
seen before. MGM was betting big on an un- startling because it is a largely silent one. The
proven genre. Way behind schedule and over movie’s long stretches without speaking seem
budget, the expansive production seemed less just as radical today as they did 50 years ago.
like a film shoot and more like an actual space Even more so now that we’ve been conditioned
mission.
to expect sci-fi to be full of fast talkers, laser
Kubrick wasn’t easy to work with, either. He barrages and theater-shaking explosions.
wrote “2001” with sci-fi paragon Arthur C.
The lack of sound makes us acutely aware of
Clarke, but the mercurial director was dissatis- the crushing isolation that would be endured on
fied with the collaboration and approached au- a 400-million-mile trip to Jupiter. And more
thors like J.G. Ballard to replace his co-writer. than a decade before Ridley Scott told us that
While Clarke was never dropped, many of his “in space, no one can hear you scream,” Kubrick
contributions were: In the end, Kubrick cut so terrified us with the imposing silence of the
The movie is
just as radical
today as when it
opened in 1968.
void. We still hold our breath as HAL quietly
takes over one of the ship’s pods, creeps up on
an astronaut performing a spacewalk, and uses
it to send him silently hurtling to his death.
With the film’s soupçon of sound, we’re compelled to grab onto any noise we can and hold
tight. This may be why Kubrick’s pairings of images and sound registered so powerfully in the
collective imagination, and continue to
do so. It’s impossible to watch a sunrise
and not hear Richard Strauss’s “Also
sprach Zarathustra.” And who can separate Johann Strauss II’s “Blue Danube”
from a gently pirouetting space station?
This cinematic take on the silence between the notes also gives us plenty of
time to think about the movie’s slippery
meanings, and the film’s openness to interpretation means our discussions
about “2001” will never end. Theories
abound about every aspect of the movie:
Is it a Nietzschean allegory? Are the formidable monoliths purely technological?
What are we to make of the floating
“Starchild” at the movie’s conclusion?
There’s no straightforward answer to
any questions one might have—Kubrick was
insistent about the ambiguity: “I intended the
film to be an intensely subjective experience
that reaches the viewer at an inner level of consciousness.”
Unsurprising, then, that “2001” was panned
by some of its day’s biggest names. Lucky for us
that when watching this moonshot of filmmaking, audiences were able to appreciate the silence despite the critical noise.
GETTY IMAGES
BY BRIAN P. KELLY
Mr. Kelly is the Journal’s associate Arts in Review editor. Follow him on Twitter
@bpkelly89.
.
Lettie Teague
on the shadowy
world of wine
fraud
The pink badge
of courage:
Menswear’s
gutsy new hue
D7
D3
EATING
|
DRINKING
|
STYLE
|
© 2018 Dow Jones & Company. All Rights Reserved.
FASHION
DESIGN
|
DECORATING
|
ADVENTURE
THE WALL STREET JOURNAL.
|
TRAVEL
|
GEAR
|
GADGETS
Saturday/Sunday, April 7 - 8, 2018 | D1
BEN GILES
* * * *
|
Farm-and-Table
Sourcing local produce is one thing. Now, restaurant chefs are taking ‘farm-to-table’ to a new level—
overseeing the growing themselves and plotting menus by the quirks of the agricultural cycle
I
BY ELIZABETH G. DUNN
T BEGAN for Matthew Accarrino, the chef
at SPQR in San Francisco, when he grew
weary of sifting through farmers’ markets,
vying with other chefs for the same carrots and tomatoes. Truly unusual produce,
he realized, wasn’t sold this way—it wouldn’t
make financial sense for a farmer. So he started
ordering and buying directly from farms, but he
struggled to come up with crops to request. Then,
in 2011, he got to know a regular diner at SPQR
named Peter Jacobsen, who owned a small farm
in Yountville, Calif.
Regular trips to the farm began to shape Mr.
Accarrino’s menu. He found an old crab-apple tree
that yielded mediocre fruits but “transcendent”
blossoms, which he could pick by the basketful
and candy. He noticed that squirrels raided the
ripe nuts from a couple of walnut trees but left
the green ones, so he harvested them green and
made his own version of the Italian liqueur nocino. Mr. Accarrino also asked Mr. Jacobsen to try
cultivating uncommon items, from finger limes
(no luck) to habenada peppers (couldn’t use them
fast enough).
It’s one thing for a restaurant to slap some locally grown kale on the menu and call itself farmto-table, or to refuse to serve strawberries in winter as a nod to seasonality; it’s quite another to
shape the menu according to the quirks and vicissitudes of an actual farm. But that is precisely
what chefs like Mr. Accarrino have begun doing,
establishing their own farms or forming longterm partnerships with existing ones to connect
more tightly with the agricultural underpinnings
of their cuisine. Call it farm-to-table 2.0.
“It’s been a way to bring greater depth to my
food, to establish rhythms and customs that have
some sort of meaning,” Mr. Accarrino said of his
relationship with the farm. Sustainably farmed
operations like Mr. Jacobsen’s often employ a
“cover crop” to restore nitrogen to the soil between plantings; Mr. Accarrino and Mr. Jacobsen
have devised an edible mix of arugulas, mustard
greens, pea shoots and bell beans that can be
clipped and served at SPQR. One day, Mr. Jacobsen walked into the restaurant with loads of wild
fennel, marjoram and dill—“Literally, garbage
bags full,” said Mr. Accarrino—that had been
ripped out to make way for planting. The chef
hung it all to dry and used it as the basis for a
Please turn to page D8
[ INSIDE ]
ISLANDS THAT SHOULD
BE DESERTED
A new plan for America’s kitchens D10
PEACE, LOVE AND SCREAMING
White-water rafting on the Ganges—where
the Beatles once sought enlightenment D5
A SPRING DENIM PRIMER
Our A-Z guide to
the blues D4
HIGHER TENTS OF PURPOSE
Up your camping game with shelters that
rise from the roof of your car D11
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D2 | Saturday/Sunday, April 7 - 8, 2018
* ***
THE WALL STREET JOURNAL.
STYLE & FASHION
FASHION WITH A PAST NANCY MACDONELL
A NEW MONTHLY COLUMN
Despite Selfridges’s attempt to
lure customers from the comfort of
their homes, buying a sweater on
your laptop is infinitely easier than
traipsing to a store and searching
nine floors. But online shopping is
also lonelier, less fun, and for anyone who stares at a screen all day,
suspiciously like work; It’s convenience at the cost of pleasure.
Going to a department store
might seem like simply shopping,
but it’s also a chance to practice
civil behavior, to appreciate beauti-
SHOW PONIES A 1940s in-store fashion show at Bergdorf Goodman
INDEPENDENT, ADVENTUROUS,
GRACIOUS AND GLORIOUS.
JUST LIKE YOU.
ful things, to feel a connection to
others. In the 1970s, Bloomingdale’s
was considered a New York City attraction on par with the Metropolitan Museum of Art, which, according to Robert Hendrickson, author
of “The Grand Emporiums,” was
Bloomie’s only real competition
when it came to meeting a possible
romantic partner.
To watch the customers clustering around the makeup counters in
the idealized version of B. Altman,
the grand New York City Department store, in the Amazon series
“The Marvelous Mrs. Maisel,” is to
feel a little wistful for the days
when shopping was an occasion. “It
was a club experience,” said Phyllis
Magidson, the curator of costumes
at the Museum of the City of New
York, who remembers being welcomed by Henri Bendel’s doorman,
Buster—“he knew everyone’s
name”—even as a teenager, when
she and her friends had no money
and went for the “sheer pleasure of
browsing.”
Last spring, inspired by memories of the excitement of shopping
in New York in the 1980s, Bergdorf
Goodman’s fashion director Linda
Fargo opened Linda’s at BG, an instore boutique stocked with her
picks in everything from high heels
to Squirrel nuts. “Online is efficient,” Ms. Fargo said, “but nothing
can replace touching things, looking
in people’s faces. Sensuality—that’s
what we can offer people.”
Nordstrom executives appeared
to be thinking along similar lines in
2013 when they hired Olivia Kim,
formerly of New York-based Open-
To entice people, stores
devised diversions, like
the flamingos that
wandered the rooftop of
Big Biba in the 1960s.
ing Ceremony, to make the store
more relevant to younger customers. As Nordstrom’s vice president
of creative projects, Ms. Kim has
initiated a series of pop-up boutiques and brought in buzzy, Instagram-friendly designers like Marine
Serre and Jacquemus. But her
proudest achievement, she said, is
seeing Nordstrom used as a hangout space by customers: “Not everything needs to be transactional.
I’m more interested in that they’ve
learned something, that they feel
energized and excited.”
In Zola’s novel, the department
store triumphs over the smaller
stores it has displaced, a victory of
progress over tradition. Today, it’s
the department stores that represent tradition. Whether they will
once again prove their adaptability—as they did in the 1960s when,
in response to the boutique movement, they opened in-store boutiques of their own—will depend
not just on their ability to change
but on customers’ willingness to believe in the importance of pleasure
and discovery over convenience.
The one area of retail where this
seems to be the case is the drop,
the process by which brands release
new merchandise as a “spontaneous” event, declining to march in
lockstep with fashion’s rigid seasonal schedule. The streetwear
brand Supreme is well-known for
convincing customers to show up in
person and queue, usually outside,
for a chance to acquire the latest
limited-edition merchandise. They
come not just to shop, but to mingle and talk—proof that shopping
can be about more than acquiring
stuff. As Harry Gordon Selfridge,
founder of Selfridges, once said, “a
store should be a social center.”
Department stores are taking note.
A ROBE,
WHEREVER
YOU ROAM
WITH THE NEW vogue for
kimono-esque wraps that
are designed to be worn outside, the seductive silk robe
has officially slinked out of
the boudoir and onto the
street. Beyoncé, naturally
ahead of the pajama game,
wore a floor-length floral
Gucci robe courtside at last
year’s NBA All-Star Game.
And it-girl-types like Veronika Heilbrunner have adopted robes as the go-to
layer over jeans, replacing
the somewhat lackluster
leather motorcycle jacket.
Those who are more accountant-off-duty than
model-off-duty might particularly welcome this it-piece’s
voluminous sleeves. If you’re
looking for an elegant way
to cover your arms, the
street kimono does just that
less boringly than the alternatives. “A lot of women
don’t like to show their arms
so it’s something fun to
throw over a sleeveless
dress that’s not a cardigan
or a jacket or pashmina,”
said Stacy Smallwood,
owner of Hampden Clothing,
a Charleston, S.C.-based boutique.
Options range from sur-
WRAP PARTY From left:
Forte Forte Coat, $950,
hampdenclothing.com;
Elizabeth and James Jacket,
$495, net-a-porter.com; Dries
Van Noten Robe, $1,420,
barneys.com; Giorgia Tordini
of Attico wears a robe of her
own design in Paris
prisingly democratic to indulgently haute. Mary-Kate
and Ashley Olsen’s accessibly priced line Elizabeth and
James offers youthful, vintage-inspired robes, while
master Belgian designer
Dries Van Noten poshly pro-
poses a lightweight silk version with boldly patterned
sleeves. Even fancy robes
can be dressed down. According to Ms. Smallwood,
“My more fashion-forward
customers want to wear it
with jeans, a T-shirt and
Golden Goose sneakers.”
With a piece like this
whose style quotient relies
on the textile, go for a substantial silk in a rich print.
Flimsy peignoirs belong in
the bedroom.
—Rebecca Malinsky
F. MARTIN RAMIN/ THE WALL STREET JOURNAL, STYLING BY JILL TELESNICKI (ROBES); GETTY IMAGES (TORDINI)
IN HIS DEFINITIVE 1883 novel of
department-store life, “The Ladies’
Paradise,” about a Second Empire
grand magasin, Émile Zola listed
the enticements invented by management to lure customers, among
them a velvet-lined elevator, a reading room and a free buffet of fruit
syrups and biscuits. Zola based his
fictional emporium on Le Bon Marché in Paris, one of many department stores that sprang up in European and North American cities in
the mid-19th century as a result of
the middle-class expansion, rapid
urbanization and the dazzling new
concept of leisure time.
The department store offered an
opportunity for middle-class women
to socialize in public at a time when
such options were very limited. To
further entice them, just as Zola described, stores devised all sorts of
diversions, from the first elevator in
New York City—installed in Haughwout’s Emporium in 1857—to the
flamingos that wandered the rooftop garden of Big Biba in London in
the late 1960s.
I was reminded of these long-lost
flourishes when I read that the Selfridges & Co. Oxford Street store
had recently set up a boxing ring in
its basement, part of “Lamyland,” a
collaboration with fashion eccentric
Michèle Lamy. In offering shoppers
a chance to don gloves and step
into the ring, Selfridges was doing
what Zola’s store and its real-world
counterparts have always done:
framing shopping as entertainment.
This effort may be too late. Given
the ease of e-commerce, shopping as
social entertainment is ending, and
with it, it seems, the department
store itself. Lord & Taylor’s Fifth Avenue flagship in New York will become the corporate headquarters for
WeWork, the thriving purveyor of
shared workplaces. If Lord & Taylor
represents an outdated way to spend
leisure time, WeWork epitomizes
the modern idea of work as life.
VICTORIA TENTLER-KRYLOV
Department Stores: Is the Party Over Forever?
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | D3
* * * *
STYLE & FASHION
Gritty in Pink
Wilder Roses
Why stop at the safe pastel button-down? Gutsy men are thinking pinker
BY MAX LAKIN
F. MARTIN RAMIN/THE WALL STREET JOURNAL, STYLING BY JILL TELESNICKI (JACKET, CARDIGAN); GETTY IMAGES (CELEBRITIES); ILLUSTRATION BY SEAN MCCABE
P
INK MAY be one of the
biggest colors in menswear at the moment,
but brands still treat it
like a dirty word. Todd
Snyder’s elevated sweat separates
come in “rose quartz.” Steven Alan
makes Japanese cotton T-shirts in
“putty.” The Gap offers chinos in
“dusty mauve.” Officine Générale
sent a shirt down its spring runway that is being marketed as
“faded rose.” Theory is selling a
fleece hoodie in “galah,” which, as
any amateur birder knows, is a
pinky-gray-breasted cockatoo native to Australia.
No matter what you call the
color or how persistently it infiltrates fashion, it remains a hard sell
for certain men. While most women
can comfortably think pink, as the
1957 musical “Funny Face” urges in
song, guys tend to feel more like
Steve Buscemi in “Reservoir Dogs,”
protesting, “Why am I Mr. Pink?”
Still, our notion of pink as a feminine color is a fairly recent construct. Throughout the Victorian
era, pink and blue were interchangeable nursery colors, and a
1918 article in Earnshaw’s Infants’
Department, a clothing trade publication, advised, “Pink, being a more
decided and stronger color, is more
suitable for the boy.”
Today, bold guys are reclaiming
the color’s more gender-neutral
roots. Across pop culture, men like
John Legend and Wes Anderson are
going beyond the classic pink oxford shirt—a Brooks Brothers staple
since the early 1900s and a ubiquitously safe way for men to wear the
color—to flaunt pieces from bright
pink ties to full pink suits. At this
year’s Australian Open, athletes including Rafael Nadal wore hot pink
Nike gear designed to project aggression. As Sam Shipley, apparel
Todd Snyder & Champion Jacket,
$328, toddsnyder.com
Sweater, $335, amiparis.com
BLUSHING BROS From left: Idris Elba, Wes Anderson, Donald Glover, Armie Hammer, Pharrell Williams,
Dev Patel, Rafael Nadal and Russell Westbrook
design director for Nike Court, put
it, “We talked a lot about driving
energy through confidence in pink.”
Men who subvert pink’s gendered stereotype appear assured
because they’re going against the
grain. Stylist Ilaria Urbinati, who
dresses men including Dwayne
Johnson and Donald Glover, said, “I
think it takes a really masculine guy
to wear pink.” Ms. Urbinati’s clients
feed off the rewards of taking the
risk: “I push them into things, but
then they go out into the world and
they get compliments and they’re
like, ‘What else you got?’” Recently
Mr. Glover rose to the rosé challenge by successfully wearing a
sweater the color of poached
shrimp on “The Late Show with
Stephen Colbert,” with maroon
pants, no less.
For men who are ready to take
a chance on pink (or “gypsum” or
“roseate spoonbill”), Ms. Urbinati
counsels putting a blush sweater
with navy or slate wool pants.
Combining the color with black
can read ’80s New Wave. “There is
nothing cooler than a pink hoodie
under a topcoat, worn with sneakers,” suggested designer Todd Snyder (who said he pairs his with a
camel coat). Don’t go monochromatic: Wearing one pink piece at a
time avoids an unfortunate allover
bubble-gum look.
The most current shade—soft
“millennial” pink, familiar to anyone
Cardigan, $20, uniqlo.com
who spends time on Instagram—
feels more grounded in the naturalism of the American Southwest than
the high-octane neon of “Miami
Vice.” But whatever shade you go
for, and whatever stigma-deflecting
name it’s been given, studies have
shown that pink stimulates a moodlifting response. Robert Green, a
Chicago product designer who favors pink shirts, counts himself as a
beneficiary. “It’s fresh,” he said. “It’s
a happy color. It’s positive.”
TOE THE RETRO LINE
FINE JEWELRY
As orthopedic as your old New Balances but cooler, these ‘70s-inspired
sneakers can comfort pavement-plagued feet
Tuesday April 17
New York
F. MARTIN RAMIN/THE WALL STREET JOURNAL (SNEAKERS ); GETTY IMAGES
PREVIEW
April 13, 10am to 5pm
April 14, 12pm to 5pm
April 15, 12pm to 5pm
April 16, 10am to 5pm
INQUIRIES
+1 (212) 461 6526
allaire.heisig@bonhams.com
A PAIR OF NATURAL PEARL
AND DIAMOND EARRINGS,
HARRY WINSTON
$200,000 - 300,000
‘THREE’S COMPANY’
Modern versions of shoes you could have spotted
on the ‘70s sitcom. From left: Spalwart Sneakers,
$300, doverstreetmarket.com; Pronto Sneakers, $199,
greats.com; Techno Sneakers, $310, A.P.C. 212-966-9685.
WHEN JEAN TOUITOU,
founder and creative director of clean-cut Parisian
clothing line A.P.C., attended
the Élysée Palace at the invitation of French president
Emmanuel Macron, he wore
sneakers. Most of us would
reflexively lace on dressier
footwear for such an occasion, but Mr. Touitou went
with his everyday look. “I
don’t see myself in formal
shoes anymore,” he said.
“Even if I have something
very formal on I will wear a
neutral sneaker.” Unsurprisingly, when launching his
brand’s first sneaker line
this spring, he chose just
such a neutral shoe as its
signature style: understated
in gray and white, minimal
and retro-looking.
Uncomplicated sneakers
like A.P.C.’s new model are
causing a quiet riot in the
sneaker world. Somewhere
between puritanically plain
Adidas Stan Smiths and
fussy neon Nike Flyknits,
British runner Brendan
Foster conquers a 1980
race in streamlined gear.
these trainers occupy an
aesthetically pleasing middle ground. Employing ’70sinspired details like mesh
panels, sturdy tread soles
and tapered toes, the shoes
hark back to the trainers
that jogging enthusiasts relied on back then, without
looking cloyingly retro. Rendered in neutral palettes,
these throwbacks offer a
stylish step up from your
old clunky running shoes.
Which is not to say these
shoes are blah. Like a runner’s vest, the laces on
A.P.C.’s sneakers are highlighted by reflective material. Brooklyn-label Greats
added pops of mustard and
navy blue to its sizably
soled sneaker, and Spalwart’s shoes elevate a familiar nylon and suede composition with a tasteful color
scheme of grays.
When Tyler Haney, the
founder of easygoing active
brand Outdoor Voices, first
saw Spalwarts on a passerby in Paris a few years
ago, it was the waffle-tread
sole that first drew her in.
The eagle-eyed Ms. Haney
liked that the sneaker “felt
a little bit nostalgic,” and
was a “recreational shoe”
not solely for athletics: “It
doesn’t scream or shout, ‘I
am just for running.’”
—Jacob Gallagher
International Auctioneers and Appraisers – bonhams.com/jewelry
© 2018 Bonhams & Butterfields Auctioneers Corp. All rights reserved.
Principal Auctioneer: Matthew Girling, NYC License No. 1236798-DCA
.
D4 | Saturday/Sunday, April 7 - 8, 2018
THE WALL STREET JOURNAL.
* ***
STYLE & FASHION
A
B
C
D
is for Acid Wash
An ’80s favorite gets a
2018 upgrade with a
skinny silhouette in a
pinkish hue. Ignore taboos and pair these
with a match-y pink
silk blouse.
La Vie Jeans, $250,
rebeccataylor.com
is for Blouse
Chambray tops are a
spring wardrobe staple.
For a rakish vibe, try a
version that ties in front
and, for good measure,
make it striped.
Citizens of Humanity
Blouse, $268,
shopbop.com
is for Culotte
Ease and comfort is the
name of the game
when it comes to chic
culottes. Rachel
Comey’s version is the
jean that launched a
thousand imitators. Culottes, $345,
rachelcomey.com
is for Dress
Button-front please:
Few pieces are easier to
throw on and go.
Wear yours on its own
or partially unbuttoned
over a simple top and a
pair of lighter-wash
jeans. Dress, $298,
levi.com
E
F
G
H
is for Embroidery
Denim shoes have been
scoring style points for
seasons, but exquisite
stitching takes this
pair of Palm Beachinflected slides into a
league of their own.
Sandals, $395,
isatapia.com
is for Faded
When it comes to artfully faded jeans, the
key is finding a pair that
looks naturally worn,
not beaten up by a machine—and the Row has
it down to a science.
Jeans, $550, The Row,
212-755-2017
is for Girlie
While borrowed-fromthe-boys denim is always a strong look,
when you want something a bit flirtier there’s
no better answer than a
dainty prairie skirt that
moves with you. Skirt,
$98, madewell.com
is for High-Waisted
There’s something especially flattering about
a good pair of highwaisted skinny jeans,
and this interpretation
from Khaite is the
height of that particular
fashion. Jeans, $340,
khaite.com
I
J
K
L
is for Industry Favorite
Brock Collection’s
Wright jean has become
the insiders’ go-to for a
reason: The
designers spent years
developing a cut that
looks good on pretty
much everybody. Jeans,
$475, barneys.com
is for Jacket
When it comes to finding your dream jean
jacket, the consensus
this season is that it
should be slightly oversize, all the better to
layer. Saint Laurent by
Anthony Vaccarello
Jacket, $890, ysl.com
is for Kick Flare
The slightest crop at
the hem is all that’s
needed to make flares
feel current. Look for
something that hits just
above the ankle and get
ready to kick up your
heels. Jeans, $290,
proenzaschouler.com
is for Legendary
We all know that nothing comes between
Brooke Shields and her
Calvins, and this pair
features the icon’s image in lieu of a belt
loop. Calvin Klein
205W39NYC Jeans,
$495, calvinklein.us
M
is for Mini Skirt
The dark wash is key to
elevating the look of
this clean and polished
little number.
Skirt, $209,
frame-store.com
O
Blue Notes
T
Q
is for Quilted
For the woman whose
vast denim collection is
missing only a sculptural statement piece.
Bag, $5,800, Chanel,
212-355-5050
is for New Designer
Launching this season,
L.A. brand Slvrlake is
one of our favorite developments in denim
right now. Jeans, $280
intermixonline.com
Don’t limit yourself to winter’s janky jeans. Branch out
with our A-to-Z guide to spring denim
BY CHRISTINE WHITNEY
is for Overalls
Updated with a slimmer bib, those denim
Gap overalls you lived
in throughout the ‘90s
are back, amazingly.
Overalls, $70, gap.com
N
O ANYONE WHO thinks
denim is merely basic, we
challenge you to watch
Marilyn Monroe shimmy in
high-waisted indigo in the
1961 film “The Misfits.” Or to Google
“Jane Birkin jeans Cannes.” Or to consider the masterful denim patchworking
of Japanese designer Junya Watanabe.
Denim, that universally loved casual
staple, is experiencing a golden age
thanks to relaxed workplace dress codes,
myriad brands dedicated to the fabric and
designers who know that women need
pieces that can be dressed up or down
depending on one’s mood or the occasion.
“It’s crucial for every woman to have
great jeans in her wardrobe,” said Brock
Collection’s co-creative director Laura
Vassar. It bears repeating.
Indeed, the workaday textile has become a go-anywhere hero. Wear jeans
with your favorite T-shirt for a casual
weekend or doll them up, as Ms. Vassar
suggests, with a peplum jacket. Added
stylist Danielle Nachmani: “I most often
style my denim with a plain white tee or
button down—I’m a big fan of keeping
things simple and classic.”
Not a jeans person? There’s still
plenty of denim to be had in the form of
jackets, chambray shirts, dresses and
even accessories. “What makes denim so
great is that it pretty much matches everything,” Ms. Nachmani said. To wit,
we’ve found 26 variations on the theme
to satisfy every whim.
P
is for Patchwork
Junya Watanabe, the
undisputed master of
patchworking, lets loose
with lace. Jeans, $1,865,
Comme des Garçons,
212-604-9200
R
is for Retro
The mommish ‘90s fit
has returned: This pair
would earn the approval
of Rachel from
“Friends.” Jeans, $295,
goldsigndenim.com
S
T
U
V
is for Shorts
No, jean shorts aren’t
just for the music festival set, especially when
they come in tailored,
urbane iterations like
this contrast-stitched
Chloé pair. Shorts,
$795,
matchesfashion.com
is for Two-Toned
Desperately seeking
statement jeans this
spring? Look no further
than this bleach-dipped
pair, which will turn
heads on the street
while still looking cleancut. Jeans, $285,
dereklam.com
is for Utilitarian
The workman pant gets
a high-fashion yet still
amply pocketed upgrade
in M.i.h Jeans’s luxurious fabrication. A
frayed hem adds a chic
note of carelessness.
Jeans, $280,
mih-jeans.com
is for Vest
A perfect foil for the
sweet floral dresses
that sing “spring,” a
denim vest is an easy
way to update the
items already on heavy
rotation in your wardrobe. Raey Vest, $212,
matchesfashion.com
W
X
Y
Z
is for Western
Asymmetrically pointed
pockets and pearlized
snap buttons are cowgirl-cute signatures.
Rag & Bone’s version
feels discreet, not
costume-y.
Shirt, $350,
rag-bone.com
is for XL
Sometimes, bigger really is better. Case in
point: these drawstring,
paper-bag-waisted
denim pants, which will
give any ensemble voluminous drama.
Jeans, $825, Stella McCartney, 212-255-1556
is for Yellowish White
Rich cream is the new
white—and not so associated with vicious
“Housewives”—so swap
out your optic brights
for a toned-down take
on the non-color.
Jeans, $248,
jbrandjeans.com
is for Zipper
In lieu of your standard
zipper-at-the-hem fare,
try a pair that uses the
closure as a decorative
detail at the waist, like
this zippy example from
Alexander Wang.
Jeans, $295,
alexanderwang.com
DENIM DUOS // ALTHOUGH THE CANADIAN TUXEDO GETS A BAD RAP, THESE COMBOS OF THE A-Z PIECES ABOVE PAIR SURPRISINGLY WELL
K+Q
D+Y
B+S
I+W
J+P
Just like
Grandma said,
don’t neglect to
match your
handbag to your
outfit. In this
case: A cute
cropped jean
brings out the
blue in your
snazzy patchy
purse.
While the concept of a dress
over pants may
conjure uncomfortable memories of your
college-era riotgrrrl band, this
button-up smock
layers elegantly
over off-whitecuffed jeans.
All outfits involving denim shorts
need not evoke
Britney Spears in
a gas station
parking lot. This
nipped-waist
chambray blouse
and tailored
shorts look is
more Audrey
than Britney.
The trick to pulling off a true Canadian tuxedo
without looking
like you belong in
the Canadian
boonies? Choose
well-cut, highquality denim
pieces that coordinate while contrasting slightly.
One of the many
benefits of quilting-inspired
patchwork pants
like these is that
their wackiness
facilitates mixing
and matching.
We’d add this
slouchy denim
jacket and
stand tall.
F. MARTIN RAMIN/THE WALL STREET JOURNAL, STYLING BY JILL TELESNICKI; ILLUSTRATIONS BY LAUREN TAMAKI
.
THE WALL STREET JOURNAL.
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THE WALL STREET JOURNAL.
.
THE WALL STREET JOURNAL.
ADVENTURE & TRAVEL
Picture Yourself in a
Raft on a River
BY PATRICK SCOTT
S
WEPT overboard
by the churning
rapids of the Ganges River, our rafting mate struggled
in his life jacket and helmet to
get back to our boat, terror
flashing in his eyes. I sat closest to his flailing hands and
the rest of the rafting group
shouted for me to get a hold
of him.
Just moments before, the
scene had been anything but
frantic. We’d all been drifting
in the raft in calm emeraldcolored water in the foothills
of the Himalayas. On one
bank of the river was a long
beach of beige stones leading
to a pink Hindu temple, and
on the other were mossy
boulders and towering slabs
of rust-colored rock. All
around us were lush peaks
rising from the river valley.
As we heard the sound of
water rushing down into our
first major rapid of the day,
adrenaline kicked in. “Let’s
pull forward, guys,” shouted
the river guide from the back
of the raft. The seven of us
stabbed our paddles into the
waves, exhilarated.
The thrill of riding whitewater rapids on one of the
world’s legendary rivers, and
taking a plunge in its sacred
waters, draws around 50,000
rafters to the mountain town
of Rishikesh during the paddling season, which runs September to June. Think of the
Ganges, and images of a dark
soup of industrial and human
waste, and the funeral fires on
the banks of Varanasi, come to
mind. But as it passes through
have been commodified, with
entrancing but chaotic results. Lining the switchback
lanes, shops and lean-to stalls
overflow with tunics, incense,
boiling pots of milky tea and
statues of Hindu gods. The
town’s two suspension
bridges, wide enough for a
few people, are clogged with
Indians in saris, Westerners
in harem pants, honking motorbikes, dung-dropping cows
and mooching monkeys.
For adventure travelers, it’s
difficult to know which rafting
business to choose. Tourism
officials have licensed about
250 of them. Most offer halfday paddles down river, but
you can also book overnight
camping and rafting trips, as
well as multiday excursions.
According to longtime rafting
operators, the vast majority of
tourists on the river are Indian, rafting for the first time
and not strong swimmers. The
combination of their inexperience and the power of the
river can be deadly. In the last
five years, the local media has
reported five rafting deaths,
and while I was there, a
woman died after her group’s
raft capsized. Veteran guides
say that about half of the operators are not properly
trained or equipped. It’s wise
to choose a company with seasoned guides and safety kayaks that accompany the rafts
and can quickly reach castaways.
With recommendations
from an Indian white-water
rafting association and several
guides, I selected Aquaterra
Adventures. The owners have
been rafting since the 1990s
and run an elegant hotel
called Atali Ganga, a 35-minute drive from Rishikesh,
tucked in a peaceful, forested
mountainside. For about $200
Rishikesh, the river is still
close to its glacial source, relatively clear and stunningly
green. It is wide with long sections of flat but swift-moving
water interrupted by a handful
of class 3 rapids—sometimes
strong enough to flip an eightperson raft.
Not shy of self-promotion,
Rishikesh, a town of about
100,000 people a six-hour
drive north from Delhi, bills
itself as the yoga capital of
the world and the rafting capital of India. It’s also popular
with Hindu pilgrims, drawn to
its sacred shrines, and Beatles’ worshipers—the Fab Four
arrived in 1968 and spent several weeks at one of the hillside meditation retreats.
In the decades since, rampant construction of yoga and
meditation ashrams, guesthouses and hotels, cafes and
shops, and headquarters for
rafting and trekking companies has cluttered the hills.
Spirituality and the Ganges
THE LOWDOWN // RAFTING IN RISHIKESH, INDIA
tages with floor-to-ceiling
windows. From about
Rishikesh
$200 a night, ataliganga.com.
Ganges
Getting There Land in
Dehradun
New Delhi and hire a car
for the 6-hour drive
Haridwar
north to Rishikesh.
INDIA
The travel service India Package Tour
NEW DELHI
charges about $125
one way for up to three
people. indiapackagetour.in.
r
Rive
Rafting There Trip
prices range from a
half-day paddle for
about $20, to an overnight
camping and rafting package for
about $45, to multiple-day journeys for several hundred dollars.
Long-established companies with
expert white-water guides include
Red Chilli Adventure, redchilliadventure.com; Aquaterra Adventures, aquaterra.in; Snow Leopard
Adventures, snowleopardadventures.com; and Himalayan River
Runners, hrrindia.com.
INDIA
PORTAGE PERK A stay at Atali Ganga includes a rafting trip.
a night, you get three delicious buffet meals and a
choice of two activities such
as rafting, kayaking or hiking.
I rafted on two of the three
days of my stay, starting with
a 7.5-mile paddle with a group
of young technology workers
who were staying at the hotel
on a retreat. After a tranquil
start, the seven of us were
swept into a rapid known as
Three Blind Mice. It was like a
washing machine, tall waves
rising up, curling back. The
raft buckled into them as the
bracing water washed over us.
Soon, we were slamming
into even bigger waves, at
least 10-feet high, and Anupam
Dubey took his detour into the
water. We couldn’t spot him at
first, because he was under the
boat. And then he surfaced, a
few feet away. I grabbed his
hand and, remembering our
briefing, latched onto his life
jacket lapels, dragging him
into the raft on top of me.
“It was scary,” Mr. Dubey,
27, who works in sales for a
mobile payments company in
Delhi, told me later. “One moment I’m paddling and another moment, ‘Oh, this boat
is going around my head.’”
The second day was a longer ride, 16 miles, with three
other passengers—a husband
and wife and a college student, all from Mumbai. After
we successfully navigated
Three Blind Mice, our guide
asked if we wanted to hop out
in our life jackets. He assured
us it was safe, and I leaned
back and splashed in, not noticing the chill of the 65-degree water. I bobbed downstream feet first, enthralled
by the forested hills. A glimmering sandy beach on the
shore seemingly zipped by.
For many Indians, the dip
is divine in another way. Hindus believe that the goddess
Ganga descended to earth in
the form of the river. Bathing
in her is said to wash away
sins, and if your cremated remains are scattered into the
water, it’s believed your soul
can be freed from the cycle
of reincarnation. The river
carries thousands of years
of prayers, meditation and
liberation, according to Hindus, and its inner vibration is
the cosmic sound of the universe, Om.
“Ganga maiya ki jai” or
“Glory to mother Ganga”
cheered the raft-full of Indians as we paddled by, shaking
off the chill of our swim.
Over the course of the day,
our raft was sometimes the
only boat on a bend of the
river; other times, it was one
of half a dozen floating downstream. Toward the end of
the run, a flotilla of rafts had
put in and paddlers waited in
line to jump 20 feet from a
shelf of rock into the water.
The couple from Mumbai,
Rahul and Meenal Vaidya,
knew about the risks, but he
was keen on rafting for the
first time, and she was returning for a second whitewater ride. “It’s a place where
you actually go very close to
nature,” Meenal said. “A good
place to look into yourself.”
FRANCESCO LASTRUCCI FOR THE WALL STREET JOURNAL; MAP BY JASON LEE
The Beatles sought spiritual enlightenment in Rishikesh,
a mountain town on the banks of the Ganges. These days, it’s
a whitewater-rafting hub, offering more physical highs
We were swept into
a rapid known as the
Three Blind Mice.
Staying There Yoga and meditation ashrams like Parmarth Niketan or Rishikesh Yog Peeth,
rent rooms with vegetarian meals
included, but without TVs or carpets, for about $20. parmarth.org, rishikeshyogpeeth.com.
Among the higher-end hotels
overlooking the Ganges, Atali
Ganga offers 22 handsome cot-
Saturday/Sunday, April 7 - 8, 2018 | D5
* * * *
CURRENT AFFAIRS From top: Rafting the Ganges just below Trayambakeshwar Temple in
Rishikesh; a white-water excursion with seasoned outfitter Aquaterra Adventures.
.
D6 | Saturday/Sunday, April 7 - 8, 2018
* ***
THE WALL STREET JOURNAL.
ADVENTURE & TRAVEL
Downtown’s
Upswing
O
DAVID CHOW FOR THE WALL STREET JOURNAL; ILLUSTRATION BY JAMES GULLIVER HANCOCK
After a post-9/11 building spree,
New York’s Financial District is flush with
new diversions. Here, a walking guide
BY CHRISTIAN L. WRIGHT
LD NEW YORK is the city’s newest hotbed.
South of Chambers Street and the urban grid,
the streets of Lower Manhattan wiggle and
bend, packed with glistening skyscrapers, a mix
of office workers (from Wall Street and the recent influx of media and tech companies), a well-clad local
stroller brigade and an international flow of tourists. Here you
can have a historically significant beer at Fraunces Tavern,
where George Washington said goodbye to his Continental
Army officers in 1783. Or if you favor a more futuristic atmosphere, enter the Fulton Center, a dazzlingly modern transit
hub, born out of the 1889 limestone Corbin Building, that connects nearly all subway lines. Beyond Wall Street’s metal mascots, Charging Bull and Fearless Girl, there’s enough public art
to make an open-air museum—Louise Nevelson’s great steel
“Shadows and Flags” on Maiden Lane, Jeff Koons’ “Balloon
Flower (Red)” at 7 World Trade Center and Jean DuBuffet’s
“Group of Four Trees” at 28 Liberty Street. Once a ghost town
after dark, Lower Manhattan has also become an unlikely food
destination. Restaurant titans Danny Meyer, David Chang and
Nobu Matsuhisa have all established footholds, with more big
names in the pipeline. Read on for a guide to the hood’s newest draws and oldest landmarks.
WHEELS OF FORTUNE If you tire of strolling through the financial district, the city’s bike-loan program lets you change up your view.
LIGHT AND SHADOW
Above: a corner of the Dead
Rabbit bar. Below: architect
Santiago Calatrava’s Oculus, a
modern riff on the cathedral.
ACCOUNTING FOR TASTE Steak and frites at Augustine.
STAY
THE BEEKMAN
Completed in 1883—the same
year as the Brooklyn Bridge, a
stone’s throw to the north—this
American Queen Anne behemoth was one of the city’s first
skyscrapers yet was all but derelict by the end of the 20th century. Reimagined as a hotel by
Martin Brudnizki, a lauded interior designer, the Beekman now
anchors the new downtown
scene. Set between the two perennially packed restaurants, the
bar under the nine-story atrium
is standing-room-only in the
evening. Guest rooms have high
ceilings, vintage furnishings and
original artwork chosen to reflect
the building’s history. From
about $285 a night, thebeekman.com
MR. C SEAPORT
Fourth-generation hoteliers Ignazio and Maggio Cipriani took
over a historic redbrick corner
building, an erstwhile Best Western, and renovated it into their
first New York City hotel, slated
to open in June. Joining an outpost of the Milanese design emporium 10 Corso Como and a
fish-centric food market by
Jean-Georges Vongerichten in
the rapidly revitalizing waterfront
district, Mr. C Seaport adds to
the European glamour quotient.
It will offer 66 teak and polished
concrete guest rooms, six suites
with terraces that catch the
breeze off the East River, a pale
pink restaurant called Bellini
(naturally) and a bar that lets
crowds spill out onto cobblestoned Front Street. From $689
a night, mrcseaport.com
and local whippersnappers plotting ways to disrupt industry.
The simple menu features
modern-day comfort food: from
avocado toast with poached
egg to a green bowl with kale,
quinoa and hummus. 15 Cliff
St., holeinthewallnyc.com
DEAD RABBIT
Housed in a landmark, circa-1858
building, this watering hole is actually three in one. On the
ground floor is the Taproom, a
classic Irish pub with sawdust
underfoot; on the second floor is
the Occasional, a snug moody
boîte that can be reserved for
private affairs; and upstairs, the
Parlor, a skinny and ambitious
cocktail bar. 30 Water St., deadrabbitnyc.com
BLUE RIBBON FEDERAL
GRILL
A chic dining room with a small,
sexy, partitioned-off bar, the restaurant hides in the shadow of
the Federal Reserve. You can
spend your personal fortune on
50 grams of Siberian caviar
($125). Or instead, sit at the bar,
have the perfectly modest 6ounce bar burger on its buttery
bun ($18), and take advantage
of the well-crafted wine list. It’s
not show-offy but full of unusual values. 84 William St., blueribbonrestaurants.com
SHOP
EATALY
Like a newfangled Italian village
on the third floor of a commercial tower, this 48,000 squarefoot food emporium has garlic
and fennel opposite a wine bar,
acres of breads and olives, kitchenwares and books by the gelato station, three restaurants
(sit by the window at Osteria
della Pace for a bird’s-eye view
of the skyline), and a roster of
events such as child-friendly
pasta-making classes. 101 Liberty
St., eataly.com
PASANELLA & SON
VINTNERS
Waiting for you inside this vast
shop—with a tasting room that
opens into a garden in back—are
more than 400 wines, eclectic
spirits (like Don Amado mescal
from Oaxaca) and a vintage Fiat
500 with a picnic hamper in the
back seat. The 1839 building is
steeped in history, too: You can
see the waterline from the flooding of Hurricane Sandy on the
store’s exposed brick walls. 115
South St., pasanellaandson.com
NEXT CENTURY
A high-fashion boutique in the
northwestern corner of Century
21, the discount department
store, it’s prime off-price hunting
ground for funkier pieces from
designer labels (Alaia, Celine,
Jeremy Scott), vintage Helmut
Lang jeans, Balenciaga handbags and Ferragamo wallets,
plus mini collections from upand-coming names. 21 Dey St.,
c21stores.com
NORTHERN GRADE
This raw, whitewashed space is
a marketplace for unique products—from cable knit throws to
stripy T-shirts—all made in the
U.S. 117 Beekman St., northerngrade.com
THE WESTFIELD AND
BROOKFIELD MALLS
Rather oddly, the sobering 9/11
EAT & DRINK
AUGUSTINE
The seventh in Keith McNally’s
empire of atmospheric restaurants, this brasserie inside the
Beekman hotel has the floral
painted tiles, big tarnished mirrors and honey glow of a Parisian period drama. The menu
hits notes old and new—from
the pressed juices at breakfast
to the late-night steak frites—
and the bar has a continental
air: It’s always cocktail hour
somewhere. 5 Beekman St., augustineny.com
HOLE IN THE WALL
Go to this neighborly Australian
cafe for breakfast when the
wooden-topped tables fill up
with travelers studying apps
Memorial is now surrounded by
a shopping mecca. Even if you’re
not planning to spend a dime,
you may want to gawk at the
Westfield Mall’s centerpiece,
Santiago Calatrava’s white Oculus, which looks like the skeleton
of a giant bird about to take
flight. It holds two levels of
shops and leads via underground passageways to the Fulton Center transit hub and another higher-end mall, Brookfield
Place, with a fancy food court
and French-style market. 185
Greenwich St., westfield.com; 230
Vesey St., brookfieldplaceny.com
THE SPA AT FOUR
SEASONS NEW YORK
DOWNTOWN
Tucked into a slender tower
housing 189 guest rooms and
157 condo units, the Four Seasons’ all-beige spa is a snazzy
spot for a pedicure or an “Intense Glow” body treatment
that combines massage with
glycolic acid. The spa packs a
75-foot heated lap pool and a
gym in with the seven treatment
rooms and, rare in these parts, a
sun-deck. Open to the public,
except the pool and gym. 27
Barclay St., fourseasons.com
SEE
DRIVEN TO DRINK A vintage Fiat 500 among the vintages at Pasanella & Son Vintners.
EARLY AMERICAN
HISTORY
Built in 1700, the original Federal
Hall was the site of George
Washington’s inauguration and is
now a museum cater-cornered
to the New York Stock Exchange. 26 Wall St., nps.gov; the
Federal Reserve, the central bank
conceived by Alexander Hamilton, the first U.S. Secretary of
Treasury, contains a vault full of
gold. 33 Liberty St., newyorkfed.org. Lately a magnet for
fans of the Broadway smash,
Hamilton’s grave can be found in
the Trinity Church cemetery. 75
Broadway. All are open to the
public; check hours for Federal
Hall and reserve in advance for
the bank.
CITY HALL PARK
A little oasis of green with
benches, gas lamps and a
fountain in the middle, this
small park lies at the doorstep
of the Woolworth Building. In
the 1600s, it was a communal
pasture for livestock; now
sculptures pop up on the grass
in revolving Public Art Fund exhibitions. Enter via iron gate at
Park Place and Broadway.
ONE WORLD
OBSERVATORY
The trip to the top of the Freedom Tower—at 1776 feet, the
tallest building in the U. S.—
takes less than a minute in a
surround-sound elevator with a
film documenting the city’s history projected all around. But
that’s nothing compared with
the unobstructed 360 degree
views at the top. Tickets from
$26. 280 Fulton St., oneworldobservatory.com
PROMENADE AT PIER 17
Leave time to walk around the
southern tip of Manhattan,
from Pier 17 along the East
River promenade past the heliport and Staten Island Ferry to
Battery Park—with its community gardens, Sea Glass Carousel and fishermen tossing their
lines into the harbor. The
promenade continues after Pier
A and parallels the Hudson
River, through the suburban
enclave of Battery Park City,
from which you can cut back
again, across the West Side
Highway, to the falling waters
of the 9/11 Memorial.
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | D7
* * * *
EATING & DRINKING
ON WINE LETTIE TEAGUE
The first in a two-part series on
wine fraud.
A FEW WEEKS AGO the French police discovered a cache of fake
Côtes du Rhône wine so large it
would have equaled 15% of the output of the entire appellation over
almost two and a half years—had it
been real. It was bulk stuff of no
particular distinction, and the CEO
of the company was charged with
fraud. This was just the latest in a
long series of such discoveries in
recent years, and further proof that
counterfeiters target cheap wines
just as readily as grand crus. As
Maureen Downey, a San Franciscobased expert on wine fraud, observed, “Fake wine hits the entire
gamut of wine.”
Eager to know what a wine
drinker can do to protect herself
and avoid possibly lining the pockets of counterfeiters, I attended a
wine fraud and authentication seminar last month run by Ms. Downey
at the Four Seasons Hotel San Francisco. Attended by wine professionals and passionate amateurs, the
two-day session cost $5,000 per
person. It was the first such seminar Ms. Downey, proprietor of Chai
Consulting, a wine collection management company, has held in the
U.S. (She has held several such seminars in Hong Kong and London.)
Some participants brought along
bottles of their own for authentication. Susan Lin, a Master of Wine
candidate and business development manager of the Belmont Wine
Exchange in Hayward, Calif., presented bottles from great producers: Chave Hermitage and Domaine
Ponsot Chapelle-Chambertin. She
thought the wines were real, but
she wanted to be certain.
The name Domaine Ponsot will
ring a bell with those who follow
wine-fraud news. In a story made
famous by the documentary “Sour
Grapes” and the book “In Vino Duplicitas,” the domaine’s proprietor,
Laurent Ponsot, attended a 2008
wine auction in New York where
fake bottles of Ponsot wines were
offered for sale. The consignor was
Rudy Kurniawan, a high-profile collector from California.
An investigation into Mr.
Kurniawan’s dealings culminated in
a search of his Arcadia, Calif., home,
which turned out to be filled with
tools of wine fakery: counterfeit labels, blank corks and empty bottles
to be filled. Mr. Kurniawan went on
trial in New York for counterfeiting
and was convicted in 2014. He was
ordered to pay $28.4 million in restitution to seven of his victims and
to forfeit $20 million in property,
and is serving a 10-year sentence in
a federal prison.
On the day of our seminar, Ms.
Downey noted that though hundreds of “Rudy” bottles were ultimately destroyed, many more of
KEVIN WHIPPLE
What It Takes to Out-Sleuth Wine Fraud
his creations are still in circulation; she estimated that they could
sell for at least $550 million. Mr.
Ponsot also believes Rudy fakes
are still out there. “I think that
people will try to sell them,” he
said in a recent phone call. For his
part, Mr. Ponsot—whose new winery, called Laurent Ponsot, will de-
‘Authenticating a wine
is like authenticating
a work of art.’
but its first wines in the fall—
added that he’s made sure his
wines are “protected” from counterfeiting.
Los Angeles-based attorney Don
Cornwell has been keeping track of
counterfeiters and counterfeit wines
for over a decade—a hobby sparked
by his outrage over all the fakes he
found in the market. Mr. Cornwell
teamed up with Ms. Downey and
New York wine merchant Geoffrey
Troy to investigate the bottles he
suspected were fake and began
posting his findings on Wineberserkers, a chat forum favored by
passionate oenophiles and serious
collectors.
The forum topic Mr. Cornwell
created in February 2012, titled
“Rudy Kurniawan & the Global Wine
Auction Fraud,” remains active to
this day. A staggering 169 pages
long as of this writing, it features
photographs of fake bottles and
auction results posted by Mr. Cornwell and others, as well as general
wine-counterfeiting news.
Mr. Cornwell believes the wine
auction houses have largely
“cleaned up their act” in the decade
since he began his crusade. Jamie
Ritchie, worldwide head of Sotheby’s Wine, agreed that the origin
of wines offered at auction today
receives far greater scrutiny. “People are willing to pay much higher
prices for collections with great
provenance,” he said.
Counterfeit wines are sold at
many other places besides auction
houses, Ms. Downey cautioned.
“eBay has had a huge problem with
people selling fakes,” she said, citing some “very obvious” bottles of
fake Château Pétrus she found on
the site. (Ryan Moore, eBay’s director of global corporate affairs and
communications, said that the company conducted an initial review of
Château Pétrus bottles purchased
on eBay and did not come across
any counterfeit claims. Mr. Moore
also noted that buyers may notify
the company if they believe they
bought counterfeit wine.)
Ms. Downey believes much more
fake wine is made in Europe than in
the U.S. “There are at least five
counterfeit wine rings in Europe,”
she said. Though quite a few highprofile seizures of counterfeit Château Pétrus and Domaine de la Romanée-Conti (DRC) have been made
in France in recent years, the sentences have been so light they
hardly seem like a deterrent at all.
A Russian counterfeiter got a mere
two-year jail term in France in 2017
for selling 400 bottles of fake DRC,
but the sentence was suspended
and he went free.
Ms. Downey pointed out that
some European wineries, including
Domaine de la Romanée-Conti, are
working to combat fraud. She outlined a few of the methods some of
them have adopted, including invisible ink, holograms and serial numbers on labels, as well as embossing
directly on the bottles and proof
tags hung around the necks. “I
don’t believe in a single-solution
answer to fraud,” she said. Her favored form of protection: a registry
where collectors could provide information about wines and their
histories, which could then be accessed by other collectors. A similar
system is used in the diamond
trade, but the wine world has yet to
embrace such a safeguard.
For the meantime, Ms. Downey
offered advice and provided counterfeit-detection tools for seminar
participants, including a jeweler’s
loupe, a measuring tape, a UV light
and UV-visible pens. She outlined
her authentication process, which
begins with careful scrutiny of the
wine bottle—the loupe proved
handy here—notably the label, the
paper it’s printed on and the printing method and ink, as well as
other components such as the capsule and the cork. Ultra-white paper, detectable under UV light,
wasn’t in commercial use until the
1960s. With the aid of a microscope,
one could detect if the paper was
recycled, which would mean the
wine couldn’t have been produced
before the 1980s, when recycled paper was introduced for labels.
“Authenticating a wine is like authenticating a work of art,” said Ms.
Downey. She instructed participants
to go slowly and to “look at the
whole thing” first before zooming
in on details. We split into groups
and pored over the fake bottles Ms.
Downey had assembled, as well as
the bottles participants had brought
along.
We checked the labels’ paper
with pens to ensure it wasn’t the
modern recycled stuff not in use at
the time of the purported vintage.
We also checked the printing and
saw that some letters were slightly
off—a possible counterfeit clue. After close scrutiny of her bottles of
Chave Hermitage and Domaine Ponsot Chapelle-Chambertin, Ms. Lin
was relieved to receive confirmation that they were indeed real.
As I was writing this column,
news of another large-scale winefraud story broke. The Bordeaux
négociant Grands Vins de Gironde
was accused of faking the equivalent of almost 70,000 cases of
wine over several years, “recreating” cheap wines as Bordeaux; just
this week the company was fined
200,000 euros by a criminal court
in Bordeaux. When I mentioned
the case to Ms. Downey, she
praised the French police and said
she believed the increased attention to counterfeit fine wine had
resulted in an increased number of
arrests related to the counterfeiting of all kinds of wines.
Above all, she emphasized that
wine fraud isn’t a victimless crime.
“It affects people who work very
hard to make good wine, who are
proud of their wines and their appellation,” she said. “It ruins their
reputation and it destroys all their
hard work.” With the right tools
and a gimlet eye, she believes, we
can all play a part in protecting
that work.
Email Lettie at wine@wsj.com.
Catfish Tagine With Chermoula
The Chef
Mashama Bailey
Her Restaurant
The Grey, in
Savannah, Ga.
What’s She’s
Known For
Carrying the legacy
of the great
Southern cook Edna
Lewis into the
21st century, with
a focus on regional
ingredients.
Elevating comfort
food in a way
that remains rooted
in tradition.
UPON MOVING to Savannah, Ga., to open
the Grey, chef Mashama Bailey had to hit
the ground running. “The first year, I
missed all the seasons,” she said. Eventually, though, her cooking fell in step with
local rhythms, and this dish was born.
“We get peppers from spring through
September, and catfish is super available
and sustainable down here,” Ms. Bailey
said. She decided the way to make the
most of both was in a North African-style
tagine. The recipe calls for cooking catfish
fillets on a bed of stewed peppers. Chermoula, a paste of herbs, cumin and paprika, does double duty as marinade for
the fish and condiment to serve with it.
The catfish steams gently as its drippings mingle with the vegetables to make
a flavorful stew that regulars at the Grey
have come to look forward to at this time
of year. “People have started asking about
this dish again,” said Ms. Bailey. “We’ll be
putting it back on the menu soon.”
—Kitty Greenwald
TOTAL TIME: 40 minutes SERVES: 4
1 red bell pepper, halved
lengthwise, cored and
seeded
1/
2 cup plus 2 tablespoons
olive oil and more for
broiling peppers
4 catfish fillets
Kosher salt
1 serrano pepper,
stemmed and seeded
1 carrot, grated
2 green bell peppers,
julienned
2 yellow or orange
peppers, julienned
1 yellow onion, thinly
1. Set broiler to high. Rub red bell pepper with
oil and set under broiler, cut-side down. Broil
until charred in spots, 5-7 minutes. Meanwhile,
season fish with salt and refrigerate.
2. Preheat oven to 375 degrees. Scrape any
loose, charred skin from red pepper and place
in a food processor. Add serrano and pulse to
a smooth paste. Swirl 1/4 cup oil into a large,
lidded pan and set over medium heat. Stir in
pepper paste, grated carrot, julienned peppers,
and onions. Season with salt. Sauté until pep-
sliced
2 cloves garlic
1 tablespoon cumin
11/2 tablespoons sweet
paprika
1/
2 cup flat-leaf parsley
1/
2 cup cilantro
Juice of 1 lemon
pers soften fully, about 20 minutes.
3. Meanwhile, make chermoula: In clean bowl
of food processor, combine garlic, cumin, paprika, parsley and cilantro. Pulse to finely
chop. Transfer to a bowl, stir in remaining olive
oil, and season with salt and lemon juice.
4. Spread half the chermoula over fish. Place
fish on sautéed peppers in pan and cover with
lid. Transfer to oven and cook until fish is
opaque and flaky, about 10 minutes. Serve
tagine with reserved sauce on the side.
ZIP IT UP Like a pesto or a salsa verde, chermoula is a zesty paste of herbs
and spices that makes a delicious marinade and sauce for fish.
KATE SEARS FOR THE WALL STREET JOURNAL, FOOD STYLING BY CAITLIN HAUGHT BROWN, PROP STYLING BY SUZIE MYERS; ILLUSTRATION BY MICHAEL HOEWELER
SLOW FOOD FAST SATISFYING AND SEASONAL FOOD IN ABOUT 30 MINUTES
.
D8 | Saturday/Sunday, April 7 - 8, 2018
* ***
THE WALL STREET JOURNAL.
EATING & DRINKING
WHAT COMES AFTER ‘FARM-TO-TABLE’?
Continued from page D1
ground herb mixture he dubbed “lasagnette
spice,” now a staple seasoning in his pantry.
A shift this fundamental—from simply
sourcing locally to becoming the source—
takes time. Perhaps the godfather of this
next-level locavorism is chef Dan Barber.
Since 2004, he’s been cooking food raised in
the fields around his Pocantico Hills, N.Y., restaurant, Blue Hill at Stone Barns. Melissa
Kelly, another pioneer, built farming into her
restaurant’s business model when she opened
Primo restaurant on the Maine coast in 2000.
Since 2013, Joshua Skenes has grown the
lion’s share of the produce and meat used at
his three-Michelin-starred San Francisco restaurant, Saison, on farmland in Marin County,
where he can control everything from the
seed stock through the handling at harvest.
When a restaurant takes responsibility for
growing ingredients, it provides diners an extra measure of confidence in their provenance
at a time when local-sourcing claims are increasingly in doubt and the descriptor “farmto-table” has become so overused as to be almost meaningless. (See, for example, the 2016
investigation by Laura Reiley in the Tampa
Bay Times revealing widespread fraud in restaurants’ claims to buying local.) But the
value of growing your own goes well beyond
ensuring truth in advertising. It guarantees
the restaurant a supply of ingredients that
are unique, in type or quality, compared with
what is commercially available. And it transforms the restaurant from an on-demand
buyer of ingredients to a vehicle for supporting, and showcasing, the whole ecology of a
sustainable farm—not just peak-season tomatoes and rib-eye steaks but forgotten and
beautiful foodstuffs, from cover crops to wild
herbs to underutilized, tasty cuts of meat.
Before opening Woods Hill Table in Concord, Mass., restaurateur Kristin Canty was
adamant about serving meat raised to rigorous environmental and ethical standards, but
she couldn’t find enough being produced in
New England. So she purchased land in New
Hampshire and hired a farmer. At the restaurant, chef Charlie Foster uses every part of the
animals they raise; beef tartare, Bolognese
sauce and charcuterie are some of the ways
Mr. Foster works his way through entire pigs
and cows. “That structure, though it may seem
limiting, is actually extremely liberating because there’s a larger purpose to why I’m serving what I’m serving,” he said. To make even
better use of all the “off cuts” and trim, Ms.
Canty and Mr. Foster recently opened a Mexican restaurant called Adelita, where these flavorful bits come tucked inside tacos.
The rewards are in superior
control and freshness, and being
so intimately involved.
GREEN ACRES A field of kale at
Epiphany Farms in Central Illinois.
This farm’s crops supply and inspire
the menus at four partner
restaurants.
FARM FRESH // RESTAURANTS
THAT GROW THEIR OWN
Maine
PRIMO
2 Main St., Rockland, primorestaurant.com
The restaurant is surrounded by a 5-acre farm
boasting two greenhouses, roaming
pigs, and chickens raised and slaughtered
on-property.
The dish Olive oil confit pork shoulder from
Primo Farm pigs, with wild dandelion and mustard greens and a preserved farm egg grated
on top.
WALKERS MAINE
1273 U.S. Route 1, Cape Neddick, walkersmaine.com
Justin and Danielle Walker cultivate their 12-acre
backyard, grazing 30 milking goats and foraging
ingredients like wild peas and blueberries.
The dish The restaurant’s sourdough focaccia,
made using goat’s whey leftover from cheese
making.
Massachusetts
WOODS HILL TABLE
24 Commonwealth Ave. West, Concord, woodshilltable.com
Kristen Canty produces all the meat used here,
and at sister restaurant Adelita, to impeccable
organic standards at Woods Hill Farm in New
Hampshire.
The dish On the brunch menu, fried Woods
Hill Farm chicken leg served with a long-fermented sourdough waffle, jam from local
peaches and syrup tapped from Woods Hill
Farm maples.
HAUTE AGRARIAN Salad of
organic roasted beets tahini, sorrel,
sumac-spiced pine nuts and quinoa
with Champagne vinaigrette at
Woods Hill Table in Concord, Mass.
New York
BLENHEIM
283 W. 12th St., Manhattan, blenheimhill.com
Morten Sohlberg and Min Ye grow fruits and
vegetables and raise heirloom sheep, pigs and
poultry three hours north of New York City at
Blenheim Hill Farm.
The dish The restaurant’s green salad is made
from a dozen varieties of greens, grown together hydroponically and clipped to form an
instant salad mix.
BLUE HILL
75 Washington Place, Manhattan, and 630 Bedford Rd., Pocantico Hills, bluehillfarm.com
The restaurants draw from both the Stone
Barns Center for Food and Agriculture and Blue
Hill Farm, Dan and David Barber’s family farm in
Massachusetts.
The dish Blue Hill Farm supplies the restaurants
with beef from retired dairy cows that have been
100% grass fed for nearly a decade, which Mr.
Barber describes as offering “a taste experience
that’s transcendent.”
Kentucky
PROOF ON MAIN
702 W. Main St., Louisville, proofonmain.com
Steve Wilson and Laura Lee Brown own both
Proof on Main and Woodland Farm, which provides the restaurant with whole heritage pigs,
grass-fed bison, hen eggs and dozens of varieties of fruits and vegetables.
The dish Bison heart pastrami, house-cured in
sorghum brine for two weeks.
Illinois
EPIPHANY FARMS RESTAURANT
220 E. Front St., Bloomington, epiphanyfarms.com
The company’s own sustainable farm supplies
its four restaurants with over 500 varieties of
vegetables plus eggs, chickens, pork and
mushrooms.
The dish The “pork feature,” offering different
WHITE LOFT STUDIO (SALAD); EVA KOLENKO (WAGYU)
In 2009, Ken Myszka, Nanam Yoon Myszka
and Stu Hummel started farm/restaurant hybrid Epiphany Farms in Mr. Myszka’s hometown of Bloomington, Ill. Amid large-scale
commodity farms and a density of fast-food
chains, with a shortage of local farms that fit
their vision of sustainability, they took matters into their own hands. Now they have four
restaurants that draw from the farm’s bounty.
Mr. Myszka spends a lot of time training
cooks to work with the wonky specimens organic methods tend to yield. “We’re taught as
cooks that we can always order something
exactly to spec. Then you start farming and
you realize that the vast majority of cucumbers are not straight, and a lot of them have
pest damage,” Mr. Myszka said. “Now I know
that you can work around all that.”
It’s a common misconception—one that
provoked plenty of wry laughter from the restaurant owners I spoke with—that producing
your own ingredients might cut costs. The
hefty startup investment and years it takes to
build up to maximum efficiency mean that a
do-it-yourself approach is often more expensive than conventional buying options. But
many chefs believe that as their operations
mature, the costs will come down to rival
farmers’ market prices. Even Ms. Kelly, who
has 18 years under her belt at Primo, thinks
her food cost works out to about what she
would pay small local purveyors to do it for
her. The rewards are in the superior control
and freshness, and the pleasure of being so
intimately involved.
Even for chefs unable to go whole-hog (so
to speak) into farming, small-scale efforts can
have an outsize influence. Danielle and Justin
Walker opened Walkers Maine last month in
Cape Neddick, south of Portland. They grow
fruits and vegetables organically on their
nearby 15-acre farmstead, which has been in
Ms. Walker’s family for six generations.
Though it barely makes a dent in their overall
purchasing, the farm shapes their cooking in
fundamental ways. The Walkers keep a herd
of goats to clear and fertilize fields, and the
milk they produce has led to a proliferation of
fresh cheeses and ice creams on the menu.
Wild cranberries contribute to cocktails and
preserves. Mr. Walker said that running the
farm helps him understand the right questions to ask his suppliers. Ms. Walker, who
does the bulk of the farm work and is the restaurant’s general manager, takes every opportunity to transmit to guests her enthusiasm
for farming. “Even if it’s just talking about my
early morning hour in the garden, they may
adopt that,” Ms. Walker said. “The romanticism of the whole process is contagious.”
THE LOCAVORE’S DILEMMA From left:
Wagyu beef cooked over eucalyptus with
chestnut purée and greens at Single Thread
in Healdsburg, Calif.; honey meringue at
Blenheim in New York City.
cuts from the farm’s pigs each day, allowing the
restaurant to utilize every bit of the beast.
California
QUINCE
470 Pacific Ave., San Francisco, quincerestaurant.com
“It’s like a springboard for the cuisine here,” chef
Michael Tusk said of his exclusive partnership with
Peter Martinelli’s Fresh Run Farm, which cultivates
the likes of white asparagus and Malabar spinach
on 20 acres across the Golden Gate Bridge for use
at Quince and sister restaurant Cotogna.
The dish Freshly-dug La Ratte potatoes served
alongside crumbled brioche “soil” and a poached
local oyster, the shells of which are used to fortify Fresh Run Farm’s potato fields.
SPQR
1911 Filmore St., San Francisco, spqrsf.com
Peter Jacobsen’s Yountville smallholding provides
the restaurant a wide range of esoterica, from
green walnuts to quinoa leaves.
The dish Peach-leaf gelato, with a flavor like
marzipan, made by infusing cream with leaves of
peaches from Mr. Jacobsen’s heirloom orchard.
SAISON
178 Townsend St., San Francisco, saisonsf.com
The restaurant owns 90 acres in Marin County,
which provide ingredients from wild boar to edible
flowers. “Our entire menu is built around the idea
of 100% utilization,” said chef Joshua Skenes.
The dish Beets roasted three days over fire, then
grilled and basted with butter from Saison’s cows.
SINGLE THREAD
131 North St., Healdsburg, singlethreadfarms.com
Husband and wife Kyle and Katina Connaughton
farm 5 acres on the Russian River, specializing in
heirloom vegetables rarely seen outside Japan.
The dish The tasting menu starts with a dozen
different bites—a snapshot of the day’s harvest.
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | D9
NY
* * * *
DESIGN & DECORATING
The State of
The Secretary
PAST FORWARD Designer
Kathryn Scott, whose Brooklyn
living room appears in her new
book, ’Creating Beauty: Interiors’
(Rizzoli), said secretaries pull her
into a time ‘when life was slower.’
BY CATHERINE ROMANO
T
HE SECRETARY desk
has waited patiently for
us to notice its clever
beauty again. Once rendered obsolete by the
space demands of hulking desktop
computers and printers, the quaintly
compact desks with enclosed storage were stockpiled in attics and
used-furniture store rooms. But the
stars have aligned to bring these almost-antiques back to relevance.
‘Perfect for laptops, these
vintage pieces are more
modern than a large desk.’
“These vintage pieces are more
modern than a desk these days,”
said Los Angeles architect Raun
Thorp. As more people store documents on a cloud and reduce their
computer hardware to a laptop, big
working surfaces have become the
relics. “Secretaries are like a tiny
multiuse building in a room,” said
Ms. Thorp, who noted that their
height can bring an unexpected dynamism to a room.
The modest scale of most vintage
models, neither very deep or wide,
makes them especially versatile.
Richmond, Va., designer Janie Molster said of the chinoiserie-style
piece she bought in her 20s, “I have
used it in a bedroom, dining room,
living room, kitchen and currently
my foyer.” The secretary’s lower
drawers can store linens, photo albums or clothes; shelves above,
usually enclosed by glass doors, can
house books or display anything
from pottery to Matchbox cars. Rachel Cannon, a designer in Baton
Rouge, La., recently tucked one in a
stair landing to create a miniature
home office. Kari McIntosh, a designer in San Mateo, Calif., used a
contemporary West Elm model in a
nursery-cum-office in her own twobedroom apartment.
Slots, shelves and drawers (and
secret compartments, if you’re
lucky) store vestiges of pre-digital
life such as staplers and pens, and,
brilliantly, the desk fronts close up,
“hiding contents elegantly,” said
New York designer Phillip Thomas,
who placed a 1950 green-blue lacquered French number in a corner
surrounded by floor-to-ceiling glass
windows. Mr. Thomas favors antique
and 20th-century versions, he said.
“I am drawn to their history, the fine
materials and the craftsmanship.”
That 20th-century pieces are still
around testifies to their quality,
said Anna Brockway, co-founder of
vintage site Chairish, which was
hosting 110 secretaries for $1,000 or
less in early April. “They’re a great
example of a category of brown furniture becoming relevant again,”
she said, referring to the traditional
wood furniture of the 20th and late
19th century that has fallen out of
fashion. “When a piece is the right
choice and you match it with accessible pricing, it becomes a hit.”
Beyond practicalities, secretary
desks can charm. “They seem to
embrace you a little,” said retired
businessman George Entin, whose
Atlanta designer Melanie Millner
found an 18th-century mahogany
beauty, now in his study. “You sort
of fall in love with them.”
our spring custom event
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A casualty of everyday antiques’ fall from
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D10 | Saturday/Sunday, April 7 - 8, 2018
THE WALL STREET JOURNAL.
* ***
DESIGN & DECORATING
A MATTER OF LIFE AND DÉCOR MICHELLE SLATALLA
A NEW MONTHLY COLUMN
A THOUSAND YEARS from now,
archaeologists sifting through the
rubble will be able to identify
early 21st-century homes by their
kitchens. The kitchen island will be
as recognizable an artifact as the
Doric column. But they won’t find
one in my kitchen in Mill Valley,
California.
When I remodeled recently, I
wanted an airy kitchen with whitetiled walls, a big window over the
sink and a human-scale table, the
kind where my grandmother sat
when she chopped onions and
where families gathered convivially—before the whole world
turned into something that looks
like a sports bar. But little did I
know that dark forces would try to
persuade me to incorporate a hulking Brutalist monolith designed to
house a second sink and a spare
dishwasher no one needs.
“Where’s the island?” my husband asked, poring over the blueprints at a meeting with the architect. “Where will we put the
Cuisinart, the KitchenAid—my immersion blender, for God’s sake?”
He turned accusingly to the architect, Mark Fischbach.
“All my clients are asking for islands,” Mr. Fischbach said, tossing
the live grenade back to me.
“We’ll have plenty of storage
without an island,” I said, putting
my finger on the spot where a wall
of cabinets would go.
“What about undercounter wine
storage?” my husband asked. “A
separate freezer drawer? A trash
compactor?”
“A trash compactor?” I replied.
“Where do you come up with these
things?”
Kitchens have gotten too complicated—and the island isn’t helping. In simpler, less cluttered
times, kitchens had a cutting
board, a knife, some onions—and a
table where you could sit and chop
them before tossing them into a
pan with a little butter. This gave
Americans everything we needed
to fill the house with a lovely
smell to reassure everyone that
dinner was pending.
The kitchen has evolved from a
humble household room to become
the main public space in the
house. I love that about the
kitchen. But I don’t see how having a monstrous, multipurpose,
built-in storage bin makes it a better family, entertainment or work
area. The kids are better off doing
homework at a table than banging
KATIE CAREY
The Day I Defied the Kitchen-Island Mafia
their knees against an island.
Drop-in guests can be more easily
put to work at an elevation where
their feet don’t dangle and lose
circulation. And cooks of an average height (like, say, me), get more
leverage rolling out dough on a
30-inch-high table than on a 36inch-high island.
Sadly, I know I am in the minority (for now) on this design issue.
Among renovating homeowners, a
built-in island is the most soughtafter kitchen feature after pantry
cabinets, according to a 2017 Houzz
kitchen-trends survey of 2,707 people. Demand is so high that celebrity chefs are jumping into the
game. Rachael Ray, Paula Deen and
Trisha Yearwood all have furniture
collections that include free-standing islands which, like higher-end
versions of the IKEA cart, are designed to add instant storage. “Rachael Ray’s island has functional
features such as a well on the work
surface, so you can scrape bits and
pieces into it,” said Patricia Bowling, a spokeswoman for the American Home Furnishings Association
in High Point, N.C.
The island trend, which started
gathering momentum in the 1980s,
is the latest in a long list of design
fads to hit the kitchen during its
transition from scullery to showroom. The idea of the kitchen as a
designed space dates to the introduction in 1898 of the Hoosier cabinet, which with its clever cubbies
and work top was marketed as the
I wanted a human-scale
table, the kind that
my grandmother
sat at when she
chopped onions.
first all-in-one cook’s prep space.
Between then and now, checkered
linoleum floors, chrome dinette
sets, and massive hanging pot
racks all had their moment.
Decades of affluence and an increase in the average American
home’s size (which grew to 2,466
square feet in 2017) have created a
fertile environment for the kitchen
island. “It grew along with the me-
gamansion movement,” said Dallas
architect Bob Borson. As walls
started to disappear and “open”
kitchens began to bleed into living
rooms, Mr. Borson’s clients started
asking for islands to delineate
spaces. “I am trying to remember
the last time I did a kitchen that
didn’t have an island—and I can’t
think of one,” he said.
Islands are so ubiquitous that
they are rewriting the rules of
kitchen design. “We used to design
around the three points on a work
triangle—the refrigerator, stove
and sink,” said Elle H-Millard, a
Pennsylvania-based kitchen designer and a trends specialist for
the National Kitchen and Bath Association. But these days she’s designing more kitchens in which all
the appliances are built into an island: “With an undercounter refrigerator, a cooktop, and a sink,
you can place the three points in a
linear path instead of a triangle.
An island lets you work in a very
small footprint.”
Not everybody considers a dining table a dinosaur, however. In a
big kitchen, homeowners want
both an island and a dining table
THE MEDIATOR
these days, architects and designers say. “There’s a casual aspect to
the island, but there’s a more relaxed and intimate air to meals
shared at the table,” said Steven
Gdula, author of “The Warmest
Room in the House: How the
Kitchen Became the Heart of the
Twentieth-Century American
Home” (Bloomsbury).
In the end, our architect brokered
a settlement in the Kitchen War: My
husband got a dedicated nook for his
cappuccino maker and coffee-bean
grinder. And I got my table—sans island. With a reclaimed elm tabletop,
its distressed look is impervious to
stains, spills and the occasional
scorch mark. And the table’s metal
frame has wheels, tempting us to
wheel it outdoors, where we eat on
the patio in nice weather. We can
seat eight comfortably in caned
wooden chairs—and 12 when we
bring up from the basement a folding extension my husband built. If
we need it, we drag in the piano
bench for two people to share.
Ms. Slatalla is an editor for Remodelista, which, like The Wall Street
Journal, is owned by News Corp.
Solution 1
Can East and West Coexist?
Hang a simple, Asian-inflected light. This lantern’s
Asian feel, said Mia Jung, director of interiors for bicoastal
firm Ike Kligerman Barkley, links it to the
Qing-dynasty bamboo seat, while its
simplicity speaks to the bookshelves’
minimalism. The solid banana-fiber
shade, laid over copper wire, contrasts
nicely with the airy bookshelf and the
chair back’s open fretwork. Pinch Soren
Lamp, $2,150, thefutureperfect.com
The Challenge An antique Chinese chair must settle in with a brand
new Scandinavian bookshelf. Three designers broker a stylistic peace
HAY Ypperlig Shelf Unit by
IKEA, $110, ikea.com
Solution 2
Chinese Bamboo Chinoiserie
Armchair from Erin Lane Estate,
$750, 1stdibs.com
Couple the pair’s colors
in a rug. The rust
shades in this Oushak
carpet agree with the armchair’s similarly hued frame, said
Newton, Mass., designer Erin Gates,
while the rug’s worn areas sync with
the grays and creams of the IKEA
piece. The vintage carpet provides visual warmth as well and, if laid under
the seat and shelf, would physically
unite the two pieces. $1,410 for 4’5”
by 7’7”, oldnewhouse.com
Solution 3
Plop down a classic
but modern planter.
Fauzia Khanani of New
York’s Studio Fōr selected a hand-painted porcelain
“fishbowl” to be used as a planter.
Its traditional Chinese shape and
geometric pattern jibe with the antique armchair; its high-contrast
color scheme reads contemporary,
like the shelving. Hand-Painted Porcelain Fishbowl, $439, houzz.com
—Kelly Michèle Guerotto
.
THE WALL STREET JOURNAL.
Saturday/Sunday, April 7 - 8, 2018 | D11
* * * *
JAMES GILLEARD
GEAR & GADGETS
Elevated Adventures
Roadtrippers are camping out on car rooftops to avoid critters, range more widely and slightly heighten the breathtaking views
BY BRIGID MANDER
THE GREAT AMERICAN road trip
still embodies that freedom so
deeply rooted in our culture: uninhibited, spontaneous, independent—until you have to sleep, that
is. Various options exist for roadside snoozing, from cookie-cutter
motels to lumbering RVs. Lately,
however, more travelers are embracing an old-school solution
with a twist: perching tents atop
of vehicles instead of pitching
them deep in the woods.
Spending the night on the roof
of the car isn’t quite as precarious
as it sounds. Years of engineering
have refined these tents, originally
made for overlanding expeditions
in South Africa and Australia. The
mini pop-up sleeping quarters are
specifically designed to sit steadily
on platforms anchored to the vehicle’s roof rack. Stowed, the tents
collapse into slim cases about 8
inches high, like a cargo box. But
when intrepid roadtrippers call it a
day, they simply park, unlatch the
tent, prop it up and climb in for
the night, much easier than preparing a campsite.
Over the last five years, a number of factors have led to rooftop
tents’ rise in popularity in the U.S.
These include the tiny-house craze,
the #vanlife movement (social media users who document their ad-
ventures in vans retrofitted as living spaces), and a renewed interest
in small travel-trailers among free
spirits who seek unconventional
vacations.
Roof tents come in two categories. Soft shells are akin to your
basic forest-floor tent but are typically crafted with tougher fabrics,
like ripstop canvas. Hard-shell
dwellings, on the other hand, cost
more but feature sturdier, aerodynamic casings you can open more
easily and quickly with help from
hydraulic struts.
Most rooftop tents come with
folding access ladders and foam
mattresses, which crucially elevate
the comfort level compared to the
bumpy slumber of sleeping on the
ground. They don’t offer much
more than sleeping space, but they
free up the area near the vehicle
for setting up chairs, building a
campfire and the occasional Three
Dog Night singalong.
Though roof tents are still a
fledgling market compared to RVs
or traditional tents, U.S. sales increased fivefold in 2017, according
to NPD Group, a market research
firm that recently began tracking
the category. Antonio Martins, export sales manager of Portugalbased James Baroud, said popularity of its tents is booming in the
states and in Europe, where German motorists have become the
brand’s largest customer base. In
2017, roof-rack giant Yakima ea-
gerly joined the game, releasing a
model of its own after assessing
the potential market.
These rooftop tents offer a degree of convenience for millennials who are looking to execute
easy weekend getaways without
investing in gas guzzlers or buying trailers that require storage
and maintenance, said Andrew
Pasquella, a representative for
Front Runner Outfitters. Most
weekend explorers can install
these tents on their current cars.
Beyond their ease of use, rooftop
tents have another key advantage:
They let you access territory nowhere near the beaten path. On a
whim you can pack the car, grab a
map and head out without being
confined to paved roads as you are
in an RV. These tents go wherever
nimble cars can: bumping up dirt
roads in U.S. National Forests or exploring hard-to-access mountain
passes, lakes and trailheads. The
roof-level offers just enough elevation from dirt and critters to calm
most nervous campers in need of a
restful night.
Snug and protected in your perch
on the roof, you can enjoy nature
from a new vantage point. The
scenery is surprisingly different just
6 feet extra off the ground. And
when the adventure is over, the tent
can simply be unmoored from the
vehicle’s roof rack and propped
against a garage wall until the next
time nature calls.
GIMME SHELTER // FOUR ROOFTOP TENTS THAT RISE TO THE OCCASION
Tepui White
Lightning
Tepui developed their
newly released hardshell
roof tent specifically for
action-sports enthusiasts looking to create a
homebase for their adventures. The two-person White Lightning
tent can support a roof
rack to securely fasten
gear like bikes, kayaks or
surfboards on top of the
shell. $3,800, tepui.com
Yakima Skyrise
Designed for weekend
road trippers and vacationers with small cars,
the nylon Skyrise most
closely resembles a traditional ground tent. Once
you reach your destination, it flips open and
sets up in minutes, and
the Yakima rack system
makes for quick installation and removal from
roofs in the off-season.
From $1,099, yakima.com
Front Runner
Feather-Lite
Made from heavy-duty
ripstop canvas, the
Feather-Lite is crafted to
hold up in hostile conditions. Campers can add
a drop-down annex that
forms a second room on
the ground. The main
tent opens easily in one
motion and is about 8
inches high when
closed. From $1,307,
frontrunneroutfitters.com
James Baroud
Evasion
Designed for hard-core
overlanders (who want
relative luxury), the Portuguese-made Evasion
won’t seem like overkill
for casual campers. Using hydraulic struts, its fiberglass shell opens in
30 seconds. A 360-window offers panoramic
views; the XXL size
sleeps three. From
$3,800, jamesbaroud.com
POP-UP SLEEPER Front Runner’s Feather-Lite.
CARDBOARD, YES. BORING, NO
Nintendo LABO rethinks how people interact with videogames,
and what happens with toys when the fun is over
INVESTIGATE THE ATTIC of most
videogame enthusiasts and you’ll
find a battalion of plastic guitars,
guns, steering wheels and rackets—peripherals once designed to
close the distance between an activity and its digital representation—now collecting dust.
But with LABO, Nintendo has reimagined the videogame accessory
for a craft-minded, environmentally conscious generation. Designed to house the Switch, the
Japanese brand’s hit game system,
each kit of perforated cardboard
sheets—recycled in part—can be
constructed much like IKEA furniture, and decorated with pens and
stickers before, once its life ends,
it’s recycled again.
With each kit, follow instructions
displayed on the Switch to perform
the sequence of pops, folds and
slottings necessary to build a remote-control car, fishing rod, set of
handlebars, a doll’s house or a minipiano. Once the structure is complete, you typically insert the
Switch (which looks a little like an
iPad) and its controllers, and your
creation blinks to life, presenting a
suite of minigames to play.
Construct the fishing rod, for example, and you’ll be able to unspool
a bright orange line into a digital
sea, jostling the bait as you waggle
your creation to reel in a fish
(caught specimens are kept in a virtual tank). Simple tunes can be
played on the piano, whose cardboard keys press with a pleasing
clunk, while a multitrack recorder
allows you to build up a song.
It’s clear from the design, which
makes use of arcane functions hidden in the Switch (e.g., an infrared
camera built into the right controller), that LABO has always been
part of the master plan at Nintendo.
The late Gumpei Yokoi, inventor
of the Game Boy, once explained
his design philosophy as “lateral
thinking with withered technology”—the repurposing of anachronistic materials in unusual, delightful ways. It’s a legacy upheld
by LABO, a series of craft projects
that reward creativity in kind.
From $70, labo.nintendo.com
—Simon Parkin
.
D12 | Saturday/Sunday, April 7 - 8, 2018
* ***
THE WALL STREET JOURNAL.
GEAR & GADGETS
FOUND IN TRANSLATION
Kia hired some of the best
European automakers to help
craft the new Stinger GT2.
RUMBLE SEAT: DAN NEIL
2018 Kia Stinger GT2: A Bid for Respect
THE 2018 KIA STINGER was in development almost seven years. In
that time thousands of product designers, engineers and suppliers
must have sat in mock-ups, prototypes and pre-builds of the rakish
fastback sedan, the South Korean
company’s new halo car and performance flagship. But nobody saw it.
At some point Kia board members must have trooped down to
the design center in Namyang for
a formal signoff. Still not a word.
Now a Stinger—a GT2 version
deluxe ($50,100, as tested), with a
throat-singing V6, rear-wheel drive,
adaptive suspension, brakes for
days—is sitting in front of my
house, giving local dads the vapors.
The want is strong. The first time
Kia tried to bootstrap itself into the
premium/entry luxury space was in
2012, with the K900 sedan. But it
presented as overstuffed and cutrate, a large sedan with unsexy,
front-drive proportions.
It’s a mistake the Stinger doesn’t
make. It is extra rear-drive looking,
with the front wheels thrust into
the nose of the car (a long axle-todash) and rears slung under a fastback hatch. This car practically gyrates its hips at you.
And still, when I sit in the
driver’s seat, my eye is irresistibly
drawn to this one, centrally located blemish, as if it were a
blackhead on a co-worker’s nose.
It’s the steering wheel hub
cover. Not even the rim, which is
flat-bottomed and wrapped in
stitched and perforated leather;
but the hard, plasticy hub cover,
under which resides the driver air
bag. Against the backdrop of
Nappa leather seats, lustrous aluminum trim and soft-touch materials, the wheel hub feels like an
overturned Tupperware bowl. Mr.
Kia, your slip is showing.
Does it matter? Strictly speaking, no. It’s not like anyone is going to walk away from the 167-mph
Stinger GT peeved about the hub
cover. And there is always tape.
But insofar as the Stinger was
built to make you forget previous
Kias, and largely does, the steering
wheel only reminds you.
Some housekeeping: The Stinger
is officially a midsize hatchback
sedan, with four doors and a rear
liftgate. But this is a fairly big car:
190.2 inches long over a 114.4-inch
wheelbase, 60% of overall length.
It’s also low (55.1 inches at the
roof). These louche proportions
disguise an unexpected usefulness:
23.3 cubic feet of cargo room and
a spacious rear cabin.
The brand has become
typecast as down-market
and generic. Kia needed
some heat in the britches.
Enter the Stinger.
Our GT2 test car squatted on
19-inch alloys wrapped in 40-series summer Michelins. Bang.
The bones are in the right place:
a longitudinally mounted front engine, rear-wheel drive, near 50/50
weight distribution, front strut and
rear multilink suspension. Under
that wealth of hood is either a turbocharged 2.0-liter 255 hp four or
3.3-liter 365-hp V6; an eight-speed
transmission with paddle shifters;
and rear-wheel drive. Torque vectoring all-wheel drive is a $2,200
option with either engine. There
are five trim levels, priced from
$31,900 (2.0L) to $51,400 (GT2
with all-wheel drive), plus $900
destination.
So are we to expect Kia to take
on the Germans at their own game?
Yeah, no. South Korea’s second-largest carmaker, behind corporate
partner Hyundai, is a master of
mass-market, value-priced automobiles. The company’s offerings dominated J.D. Power’s 2017 U.S. Initial
Quality Study, for example.
But in all that success the Kia
brand has become a bit shopworn,
typecast as down-market and generic. Kia needed some heat in the
britches. Enter the Stinger.
The Stinger is certainly the best
German car ever to come out of
South Korea. The pedigree starts
with Kia chief design officer Peter
Schreyer, formerly of Audi. Kia European design chief Gregory Guillaume, based in Frankfurt, penned
the exterior. The chassis tuning
and dynamics fell to Albert Biermann, the former director of
BMW’s M performance division,
who was poached/joined the company in late 2014.
Here and there, the Teutonic influence reaches comic proportions.
The rear hatch and taillamp assemblies are frankly derivative of
the Audi Sportback. The flash of
brightwork at the doors’ leading
edges is very like a BMW. The
Kia’s cabin design is a pastiche of
the Mercedes-Benz, with three
eyeball air outlets, tablet-style
center screen, and banded aluminum switches. Talk about great
minds thinking alike.
It drives pretty Germanically
too. Herr Biermann’s elastomeric
choices have yielded a firmly
sprung sport sedan, but it’s no
track-day monster. There is a
thoughtful amount of ride comfort
TECH NOSTALGIA
KEYS TO THE PAST
F. MARTIN RAMIN/ THE WALL STREET JOURNAL
The new Querkywriter S keyboard reproduces the clatter of a classic
typewriter—making you feel like a high-tech Hemingway
NOW
THEN
With its knobs and return lever,
the Qwerkywriter S echoes this
1920s Remington Portable 2.
dialed in to the chassis. The GT2
feels a tiny bit soft at the edges, to
me. Nor is it exactly light—3,829
pounds in test trim. It exhibits
more transient body roll than I
prefer in my look-at-me man toys.
The electric power steering is
very quick—2.2 turns, lock to lock,
just the way I like it—but doesn’t
have a lot of road feel in it. The
big Brembo brakes are strong and
sure if a bit touchy at first.
The Stinger will stand up. Zeroto 60 mph sprints pass in less than
5 seconds—Kia says 4.7 seconds
but Car and Driver wrung a 4.4
out of it—and if you keep standing
on the gas, a quick succession of
gear changes and revving arpeggios take you to the quarter-mile
stripe in about 13 seconds. The
powertrain engineers also did
right by the engine sound: The 3.3liter turbo engine puts out a nice
low burble, surprisingly resonant
for a turbo engine, that rises to a
heated warble at 6,000 rpm.
Kia’s sport-sedan bananas are
still a little green: Around-town
and at part-throttle, the eightspeed transmission has moments
of dithering delay (the mapping is
much better in Sport mode). The
car could use some stiffer springs.
But, man oh man, the price is
hard to beat. Where’s that tape?
2018 Kia Stinger GT2
Price as Tested $50,100
Powertrain Turbocharged, direct-injected 3.3-liter DOHC V6; eightspeed automatic transmission with
manual-shift mode; rear-wheel drive
with limited-slip differential
Power/Torque 365 hp at 6,000
rpm/376 lb-ft at 1,500-4,500 rpm
Curb Weight 3,829 pounds
TYPEWRITERS HAVE maintained a devoted following despite their obsolescence, and
you need only use one once to
understand why. It’s not just the
appeal of machinery in our digital times but a suspicion that
only the old-fashioned, the bygone, the traditional can coax
genius from the back corners of
our brains. It’s the same reason
people still drive stick.
“Americans were pioneers in
the typewriter’s development,”
said Helmut Schulze, owner of
Rees Electronics, one of the last
stores in Los Angeles that still
sells and repairs vintage machines. “Today, and in the past
two years especially, you see
many people with an interest in
typewriters. My youngest customer is five years old.”
Still, conveniences like internet access and the ability to edit
on-the-fly are tough to leave
behind. An appealing synthesis
of old and new: the polished
Length/Width/Height/Wheelbase
190.2/73.6/55.1/114.4
0-60 mph 4.7 seconds
Top Speed 167 mph (electronically
limited)
EPA Fuel Economy 19/25/21 mpg,
city/highway/combined
Cargo Capacity 23.3/40.9 cubic
feet, rear seatback up/folded
Qwerkywriter S, a modern keyboard designed to look, sound,
and feel like a classic typewriter.
As far as gimmicks go, it’s a
charming one. The Querkywriter’s loud clacking, created by
mechanical switches under its
chrome-rimmed keys, adds a
sense of consequence to typing
that’s missing when I use
stealthily silent computer keyboards. The words matter more.
I think of Sean Connery in
“Finding Forrester” encouraging
a young timid writer: “Punch
the keys, for God’s sake!” The
sturdy Qwerkywriter can certainly take it, and its hefty, aluminum chassis keeps it from
sliding around. You’d think you
were using a typewriter if not
for computer-specific keys and
the fact that it’s connected, either by Bluetooth or USB, to a
brightly glowing screen.
Classic typewriter accoutrements are cleverly repurposed
for computer use: The scroll
knobs, which on a typewriter
adjust the paper’s position, control volume (right) and double
as a mouse scroll (left). The return lever operates as an alternative “enter” key. A slot where
paper might traditionally go
works as a tablet stand.
You can see hints of creator
Brian Min’s old Olympia typewriter in the design. Mr. Min
said he wanted it to be something “you fall in love with,
rather than something that just
serves a function.” If the notion
of making your screen time feel
a bit anachronistic—a bit “All
the President’s Men”—appeals,
this will scratch that itch. If you
find that notion “silly,” as Mr.
Schulze does, the Querkywriter
will never win you over.
After clacking several thousand words out, I’m content
with what it brings to my workspace, though it hasn’t unlocked
any secret genius. Yet. $299,
qwerkywriter.com —JF Sargent
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