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The Wall Street Journal - April 26, 2018

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THURSDAY, APRIL 26, 2018 ~ VOL. CCLXXI NO. 97
* * * * * *
DJIA 24083.83 À 59.70 0.2%
NASDAQ 7003.74 g 0.1%
STOXX 600 380.17 g 0.8%
10-YR. TREAS. g 12/32 , yield 3.026%
OIL $68.05 À $0.35
GOLD $1,321.20 g $10.20
Business & Finance
F
acebook posted soaring
profit and revenue in its
first earnings report after
touching off widespread
data-privacy concerns. A1
Huawei is being probed
by the Justice Department
over whether the Chinese firm
violated Iran sanctions. B1
Speaker-maker Sonos is
preparing for an IPO as
soon as June or July. B1
Twitter reported its second straight profit after starting life as a public company
with 16 quarterly losses. B4
Qualcomm’s earnings slid
52%, hurt by royalty disputes
with Apple and Huawei. B4
Samsung posted its
fourth consecutive quarter of
record operating profit. B4
Takeda is near a deal to
buy drugmaker Shire for
more than $60 billion after
raising its bid four times. B2
Viacom’s profit rose and
its sales decline slowed, as
the firm works to keep a
turnaround plan on track. B2
BY DEEPA SEETHARAMAN
SANDY HUFFAKER FOR THE WALL STREET JOURNAL
The Dow edged up 59.70
points to 24083.83 as a surge
in Boeing shares helped end
a five-day losing streak. B11
The 10-year Treasury
yield settled above 3%, its
highest close since 2013. B11
Stock-trading revenue
at big banks jumped last
quarter as market volatility
drove derivatives trades. B1
SEARCHING FOR SHELTER: Central Americans in a migrant caravan are arriving in Tijuana, Mexico, at the U.S. border. Hundreds are
converging there to ask for asylum, but President Donald Trump has said he won’t let them into the country. A4
Comcast Sets Up Battle With Fox
Comcast Corp. on Wednesday lobbed an official $31 billion
proposal to buy European payTV operator Sky PLC, topping
an existing offer from 21st Century Fox Inc.
Comcast is also weighing
whether to go one step further
and interlope in Fox’s $52.4 billion deal to sell its entertainment assets to Walt Disney Co.,
people familiar with the situation say.
Comcast’s proposal to buy
Sky sent Sky shares nearly 4%
higher—and above the Comcast
By Shalini
Ramachandran,
Amol Sharma
and David Benoit
bid, suggesting investors are
positioning for a bidding war.
The company said in February
it planned to make a Sky offer.
Fox, which owns 39% of Sky,
said it remains committed to
buying all of the company. Fox
counts Rupert Murdoch and his
family as major shareholders.
Comcast, meanwhile, is gam-
Justices Hear Travel Ban Case
World-Wide
A Pentagon report says
poor training, complacency
and a culture of excessive
risk contributed to the
deaths of four U.S. soldiers
in Niger in October. A1
Chinese scientists say
part of a North Korean underground nuclear test facility that Kim has pledged to
close may have collapsed. A8
A suspected cyberattack
by North Korea on Turkish
banks is broader than first
believed, an analysis said. A8
France’s Macron said it
was his “bet” that Trump
would withdraw the U.S.
from the Iran nuclear deal. A6
California officials arrested the suspected Golden
State Killer, who allegedly
committed a spree of rapes
and killings decades ago. A3
EPA chief Pruitt faces a
grilling on Capitol Hill, as the
White House evaluates allegations involving his spending habits and ethics. A4
Yemeni rebels have begun to aggressively target
Saudi oil facilities. A7
CONTENTS
Business News...... B3
Capital Account.... A2
Crossword.............. A15
Heard on Street. B12
Life & Arts...... A13-15
Management.......... B6
Markets............. B11-12
Opinion.............. A17-19
Sports........................ A16
Technology.......... B4-5
U.S. News............. A2-6
Weather................... A15
World News...... A7-11
>
s Copyright 2018 Dow Jones &
Company. All Rights Reserved
studio, cable networks and international properties, including
Star India and the Sky stake.
Comcast may choose to leave
the Disney-Fox deal alone, and
doesn’t expect to make a decision in the near term, the people familiar with the situation
said.
Comcast’s pursuit of potentially transformative deals
comes as the company posted
Please see SKY page A4
Viacom posts smaller declines
in sales and rising profit..... B2
NBC’s Failing Bet
On Megyn Kelly
Heard on the Street: Facebook
still in the friend zone........ B12
Twitter registers second
straight profitable quarter.. B4
Growth Under
Pressure
1Q 2018
$12B
Facebook’s revenue,
in billions
$12
10
Former Fox News star’s viewers have
vanished, dragging down key ‘Today’ franchise
BY JOE FLINT
BRIAN CAHN/ZUMA PRESS
Trump’s lawyers are seeking to determine whether
Mueller has an “open mind”
about the Russia probe, as
they negotiate a possible interview with the president. A6
ing out the possibility of making a public case to Fox’s shareholders that they should reject
the Disney deal for Fox’s entertainment operations, which is
expected to come to a vote this
summer, and opt for a Comcast
tie-up instead, the people familiar with the situation said.
Comcast lost out to Disney in
December when Fox rejected its
bid, which was 16% higher, according to a Fox regulatory filing last week. Fox cited concerns about regulatory risk. The
assets include Fox’s film and TV
Facebook Inc., in its first
earnings report after touching
off widespread data-privacy
concerns, posted soaring revenue and profit that highlighted the company’s central
place in the digital economy.
The social-media giant has
weathered one crisis after another in the 17 months since
the 2016 presidential election,
but its business—at least for
now—is still thriving.
Facebook reported quarterly per share profit of $1.69,
up from $1.04 a year earlier,
while revenue rose nearly 50%
to $11.97 billion. Net income
rose 63% to nearly $5 billion,
compared with $3.06 billion a
year ago.
Those results topped analyst expectations.
Executives acknowledged
that Facebook must better police its platform, but insisted
they could do so without overhauling its lucrative advertising business, dismantling tools
for targeting consumers or offering a paid version of the
service.
“We are taking a broader
view of our responsibility and
Please see PROFIT page A8
8
Trump’s travel ban looked
likely to survive Supreme
Court scrutiny after the government’s lawyer argued that
current policy was evaluated by
national-security experts. A3
The president’s nominee
to head the VA faced new allegations, including that he
wrecked a government vehicle after getting drunk. A4
YEN 109.43
Social-media firm
posts revenue rise in
first snapshot after
user-data uproar
Comcast offered to buy
Sky for $31 billion, topping
an offer by Fox, which already owns a 39% stake. A1
Boeing said it aims to have
a Chinese plant ready by
year-end and posted results
that exceeded forecasts. B1
EURO $1.2161
Facebook
Earnings
Climb
Despite
Crisis
Migrants Gather at U.S.-Mexico Border, Seeking Asylum
What’s
News
HHHH $4.00
WSJ.com
DIVISIVE ISSUE: President Donald Trump’s restrictions on entry
from five Muslim-majority nations appeared likely to survive
Supreme Court scrutiny after arguments on Wednesday. A3
Tiny Scooters
Menace San
Francisco
i
i
i
Electric-powered
devices gain fans,
kick up a ruckus
BY ELIOT BROWN
Ben Wolfson glanced up from
his phone while walking in
downtown San Francisco last
week to see a woman whizzing
toward him on what looked like
a child’s kick scooter.
Only this one had an electric
motor. “She was just barreling
down” on the sidewalk, he said.
Mr. Wolfson, 28 years old,
jumped out of the way and shot
her a “dirty look,” but said she
didn’t react.
“She just had not a care in
the world,” he said.
While the rest of the country
is pondering the future of tech
giants’ pervasive influence in
our lives, here in the tech capiPlease see SCOOT page A12
Megyn Kelly was supposed
to bring star power to NBC
News and a bigger, broader
audience of morning viewers
to its “Today” show franchise.
Instead, the three-year, $69
million bet to woo Ms. Kelly
from her conservative primetime perch at Fox News is
backfiring.
Since taking over the 9 a.m.
hour of the lucrative morning
show in September and rebranding it “Megyn Kelly Today,” Ms. Kelly has struggled
to make the shift to daytime
broadcast television, with its
Report Hits Military
Over Deaths in Niger
BY GORDON LUBOLD
AND NANCY A. YOUSSEF
WASHINGTON—Poor training, complacency and a culture
of excessive risk contributed
to the deaths of four U.S. soldiers during an operation in
Niger in October, according to
a classified Pentagon report.
The report, described by officials familiar with its contents, details a series of missteps
and
describes
a
disregard for military procedures and for the chain of
command.
Among other things, the report discloses that low-level
commanders, determined to
make a mark against local jihadis in the West African nation, took liberties to get operations approved through the
chain of command.
In the ill-fated October mission, at least one officer copied and pasted orders from a
different mission into the socalled concept of operations to
gain approval, the officials
said.
The officials who described
the report said it wouldn’t recommend punishment for anyone. Ultimately, the Army and
the Special Operations Command have the authority to
pursue court-martial charges
or other disciplinary proceedings against those involved.
Family members of the four
fallen soldiers are being
briefed this week on the report, which is more than 6,000
pages long.
The investigation stemmed
from an Oct. 3, 2017, mission
in which about a dozen U.S.
soldiers and special-operations force members, along
with roughly 30 Nigerien soldiers, set out on what began
as a planned meeting with local officials. But by the next
day, the troops instead were
assigned to another part of
the country to search the suspected abandoned house of an
Please see NIGER page A6
6
4
delicate balance of soft features and hard news. Her ratings declines and high production costs have been a drag on
a critical franchise for NBC.
“I need to introduce myself
to people who don’t know me
or know some bastardized
version of me that they’ve gotten from a website or a TV
show,” Ms. Kelly said in an interview. “There are definitely
some who only know me
through some caricature they
learned about on ‘The Daily
Show.’ ”
Some of NBC’s affiliate TV
stations are unhappy with the
Please see MEGYN page A12
2
0
2014
’15
’16
’17
’18
Source: the company
THE WALL STREET JOURNAL.
VA Nominee
Feels Heat
New allegations are leveled
against Trump’s pick to head
Veterans Affairs................... A4
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.
THE WALL STREET JOURNAL.
A2 | Thursday, April 26, 2018
U.S. NEWS
U.S. WATCH
MUSIC-STREAMING RIGHTS
POLITICS
Bill Would Update
Copyright Law
Senator Chastises
Banks Over Guns
The U.S. House passed compromise legislation Wednesday
to update copyright laws for the
music-streaming era and help
performers of pre-1972 recordings get paid for the re-use of
their works.
The vote was 415-0. Backers
hope the overwhelming House
vote will provide momentum to
the measure. The Senate is expected to take up the issue in
coming weeks.
The legislation is supported
by streaming services as well as
big publishers and many songwriters. It attempts to settle
controversies that have arisen
as a result of an aging patchwork of protections U.S. law provides for music creators.
Under current federal law, socalled legacy artists who recorded works before 1972 don’t
have a right to be compensated
for use of their recordings by
digital-streaming services.
The problems have prompted
campaigns by the likes of Supremes co-founder Mary Wilson
and Aerosmith’s Steven Tyler to
find a legislative solution.
—John D. McKinnon
The Senate’s top overseer of
banks is criticizing moves by
Citigroup Inc. and Bank of America Corp. to stop doing some
business with the gun industry
following the deadly shooting in
February at a Florida school.
Senate Banking Committee
Chairman Mike Crapo (R., Idaho),
in letters to the heads of both
banks made public Wednesday,
said he was concerned when
large national banks “cut off financial services for lawful businesses they may disfavor.”
Mr. Crapo’s letters come after
the firms took steps in recent
weeks to curtail business with
the gun industry. Citi said last
month that it would prohibit its
business partners from selling
firearms to customers under the
age of 21 and those who haven’t
passed a background check.
Bank of America said it would
stop lending to manufacturers of
military-inspired rifles.
A Citi spokesman confirmed
the bank had received Mr.
Crapo’s letter and said the firm
would respond. Bank of America
declined to comment.
—Andrew Ackerman
M Y L A G O S M Y W AY
CAPITAL ACCOUNT | By Greg Ip
Backfire Possible as Finance Rules Ease
Deep into
an economic
boom with asset prices near
records is
when you’d expect the U.S. financial system’s guardians to tamp down
risk taking. Instead, federal
regulators and legislators are
doing the opposite—watering
down, narrowing or declining
to enforce rules passed after
the financial crisis.
The changes are modest
and don’t foreshadow a crisis
anytime soon. But the timing
is definitely awkward. They
will stimulate lending and
risk taking at a time when
the industry is lowering its
own standards amid a nearrecord economic expansion.
Much as this year’s tax cut
may overheat an economy already near full employment,
the deregulatory push could
aggravate excesses that come
back to haunt the economy in
its next downturn. Procyclical
regulation, which pushes the
economy in the direction it’s
already headed, has been a culprit in past booms and busts.
The U.S. mortgage crisis
followed decades in which
rule makers prioritized financial innovation and increased
access to credit, especially for
the poor. After the crisis, they
reversed course, subjecting
banks and other lenders to
new rules while hitting them
with billions of dollars of penalties. The crackdown probably hampered lending and the
recovery because the Federal
Reserve couldn’t offset it by
lowering interest rates, which
were already near zero.
Banks complain the pendulum has swung too far toward tighter rules, especially
on required capital, such as
equity. More capital better insulates the bank from losses
but restricts its ability to pay
dividends, repurchase stock
and lend. The pendulum is
Reaching for Risk
As lenders relax underwriting standards, the volume of risky
business and mortgage borrowing has grown.
Total new issues of leveraged
loans
U.S. issuers
Non-U.S. issuers
$800 billion
40%
600
30
400
20
200
10
0
’10
2000
Sources: International Monetary Fund
(leveraged loans); CoreLogic (mortgages)
now swinging back. Congress
is moving to exempt mediumsize banks from some of the
stricter standards in the 2010
Dodd-Frank regulatory overhaul. Two weeks ago, the Fed
proposed modestly lowering
one of the capital ratios applied to the largest banks.
T
he Fed estimates the
proposal would reduce
required capital by
just $400 million across all affected banks, a drop in the
bucket next to the $700 billion in equity the biggest
banks have added since 2009.
Fed officials are adamant they
aren’t trying to reduce capital,
just make the standards more
efficient. If there are two ways
to make the financial system
safer, “we should strive to
choose the one that is less
burdensome,” the Fed’s vice
chairman of supervision, Randal Quarles, recently testified.
Still, as the first proposed
easing of capital requirements since the crisis, it is a
watershed. Fed governor Lael
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LAGOS.COM | BLOOMINGDALE’S 59TH STREET
R
0
1998 2000
THE WALL STREET JOURNAL
C AV I A R C O L L E C T I O N S
Percentage of conventional
mortgage loans with
debt-to-income ratios over 45%
’10
THE WALL STREET JOURNAL.
Brainard, a Democrat and appointee of former President
Barack Obama, was uneasy
enough to cast a rare dissenting vote. Regulators must not
“inadvertently contribute to
procyclicality that would exacerbate financial conditions
that are, on some dimensions,
somewhat stretched,” she
said in a speech last week.
While the Fed’s actions
have been largely technical
(and began under its previous leadership), other regulators bring a more ideological
cast. Joseph Otting, a former
banker whom President Donald Trump made comptroller
of the currency last fall, refers to the banks his office
oversees as “our customers.”
As a Republican House
member, Mick Mulvaney once
said he didn’t like the fact
that the Consumer Financial
Protection Bureau even exists.
He became its interim leader
in November, and since then,
the bureau, created under
Dodd-Frank, has filed just one
enforcement action.
By email: customreprints@dowjones.com; By phone: 1-800-843-0008
egulators also are paring postcrisis efforts
to gather data on new
and emerging threats. The
Treasury’s Office of Financial
Research, which struggled to
meet its mandate as an
early-warning system for financial turbulence, will have
its staff cut by a third.
This comes when lenders’
risk appetites are growing.
The IMF last week noted loans
to highly indebted companies
topped the precrisis peak last
year, more have looser “covenants” protecting investors and more are being arranged by companies that
aren’t banks. Last year Fannie
Mae and Freddie Mac, which
guarantee the lion’s share of
American mortgages, loosened
their underwriting standards,
and the number of new loans
with high debt-to-income ratios has since shot up, according to the Urban Institute.
The U.S. is loosening regulation while other countries
tighten. Regulators in Switzerland, Norway, Hong Kong,
the Czech Republic, Iceland,
Slovakia and Sweden have all
activated “countercyclical”
boosts to bank capital, which
creates room to cut capital
requirements in the next recession and support lending.
In her speech, Ms. Brainard
suggested the U.S. may have
to do the same.
CORRECTIONS AMPLIFICATIONS
Alphabet Inc. moved its
Nest Labs business to the
Google division from its
“Other Bets” division this year.
A Page One article on Tuesday
about Alphabet’s first-quarter
profit incorrectly said the
move happened last year. Also,
Alphabet more than doubled
its capital expenditures to $7.3
billion in the first quarter,
from $2.5 billion in the same
period a year earlier. The article incorrectly said the number more than tripled.
A graphic with an Encore
report article Monday about
REPRINTS & LICENSING
Mr. Mulvaney, who is also
Mr. Trump’s budget director,
said the agency is still investigating cases, but he has broadened its mandate to protecting
lenders, not just their customers. Mr. Mulvaney’s predecessor attracted widespread complaints about regulatory
overreach and, as with bank
regulations, some reset was inevitable and arguably healthy.
Still, the subprime-lending crisis showed that an absence of
enforcement can shape behavior inside financial firms.
GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS
retirees’ spending showed
data for household health
spending that didn’t include
insurance premiums. The
graphic failed to note that the
health figures were for out-ofpocket costs only.
Philip Morris International
Inc. has its corporate headquarters in New York, though
it is run by a management
team, including its chief executive, based in Lausanne,
Switzerland. A Business & Finance article Friday about the
company incorrectly said it is
based in Switzerland.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
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THE WALL STREET JOURNAL.
Thursday, April 26, 2018 | A3
* *
U.S. NEWS
Travel Ban’s Prospects Rise
Trump’s order appears
likely to survive review
by Supreme Court after
arguments Wednesday
BY JESS BRAVIN
AND BRENT KENDALL
WASHINGTON—President
Donald Trump’s travel ban appeared likely to survive the
Supreme Court’s scrutiny
Wednesday, after the government’s lawyer argued that current restrictions on entry from
five Muslim-majority nations
traced not from the president’s provocative campaign
statements but the deliberate
assessments of national-security professionals.
Proclamation No. 9645, the
administration’s third try to
bar entry from designated
countries after previous versions stumbled in the courts,
was signed last September following “a multi-agency worldwide review and a cabinetlevel recommendation that
applied a neutral baseline” to
evaluate every foreign nation’s
ability to vet travelers and
share security information
with U.S. authorities, Solicitor
General Noel Francisco told
the justices.
Rather than exclude followers of a disfavored faith, the
September
proclamation
sought to pressure affected
governments to improve their
security protocols, Mr. Francisco said. The strategy already was working, he added,
“which is why the country of
Chad was recently dropped
from the list”—the White
House made that announcement April 10—leaving only
Iran, Libya, Somalia, Syria and
Yemen under the ban.
But Mr. Francisco couldn’t
fully escape the words of a
president who, while campaigning, won his followers’
applause by calling for “a total
and complete shutdown of
Muslims entering the United
States.” Excluding Muslims at
least temporarily, he said, was
necessary to prevent “horrendous attacks by people that
believe only in jihad, and have
no sense of reason or respect
for human life.”
Justice Elena Kagan offered
a thinly veiled hypothetical.
Suppose America elected as
president “a vehement anti-
Semite” who “says all kinds of
denigrating comments about
Jews and provokes a lot of resentment and hatred over the
course of a campaign and in
his presidency.” If that president’s administration, while
apparently complying with
formal procedures, produced
“a proclamation that says no
one shall enter from Israel,”
what then?
Mr. Francisco discounted
such a possibility. But, he continued, if national-security
staffers found a genuine threat
from Israel, “I think then that
the president would be allowed to follow that advice,
even if in his private heart of
hearts he also harbored animus” toward Jews.
A decision in Trump v. Hawaii is expected before July.
TIMEPIECES OF DISTINCTION
L.U.C LUNAR ONE
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N ew Yo r k | B al H ar bou r S h op s | B r ick ell C it y C en t re
S ou t h C oas t P laz a | Wy n n L as Ve gas
R iv er O ak s D is t r ict
1 - 8 0 0 - C H O PA R D www.ch op ard.com / u s
A photo of the alleged Golden State Killer was displayed in Sacramento Wednesday. The brother of one of the victims spoke at the lectern.
Suspected Serial Killer Captured
BY ZUSHA ELINSON
AND ERICH SCHWARTZEL
SAN FRANCISCO—For more
than 40 years, the unsolved
crimes of the so-called Golden
State Killer haunted California,
his trail of killings and rapes
bedeviling police and terrifying
communities. Authorities said
Wednesday they have solved
the case.
Joseph James DeAngelo, a
72-year-old former police officer who officials say is responsible for 12 homicides and 45
rapes throughout California
since the 1970s, was arrested
Tuesday. He was taken into
custody at his home in Citrus
Heights, Calif., a suburb of Sacramento, the city where his
decadelong violent crime spree
began in 1976.
In recent days, as the inves-
tigation pointed toward Mr.
DeAngelo, police conducted
surveillance on him and collected “discarded DNA” that
matched the killer’s, but authorities declined to elaborate
on the specifics of the clue or
what pointed them toward the
suspect.
“The answer was always going to be in the DNA,”
said Anne Marie Schubert, Sacramento County district attorney.
Mr. DeAngelo has been
charged with four counts of
murder, for two killings in Sacramento and two in Ventura
County in Southern California.
Ms. Schubert said more
charges are expected for the
other attacks that occurred up
and down the state. It wasn’t
immediately clear whether Mr.
DeAngelo had a lawyer.
The case of the Golden State
Killer has vexed police officers
and cycled through generations
of detectives across California
for decades—though it wasn’t
until 2001 that DNA testing led
officials to realize the rapes in
Northern California were committed by the same man who
killed people in Southern California.
“It is time for all victims to
grieve and take measure one
last time to bring closure to
the anguish that we’ve all suffered,” Bruce Harrington,
whose brother Keith and sister-in-law Patrice were beaten
to death in 1980 in Orange
County, said Wednesday.
The string of attacks started
in the eastern part Sacramento
with a series of burglaries and
rapes. In 1978, the East Area
Rapist, as he was first known,
chased down and killed Brian
and Katie Maggiore as they
walked their dog in the Rancho
Cordova neighborhood.
The killer then moved onto
the San Francisco Bay Area
where he committed rapes and
homicides, according to the
Federal Bureau of Investigation. He would attack couples,
tie up them up, rape the
woman and then murder both
people, the FBI said. The last
killing is believed to have come
in 1986, when 18-year-old
Janelle Cruz was raped and
murdered at her home in Irvine.
Since his attacks seemed to
stop in 1986, the Golden State
Killer became a source of fascination and frustration for an
online community of amateur
sleuths trying to track him
down.
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Terrorists’ Lives After Jail in Focus
For seven years, Shaker
Masri lived behind bars. He
passed the days reading books
about Islamic history, trying to
untangle what had spurred his
desire to join a terrorist group
overseas, which led to his arrest.
Then, in August 2017, it was
time to leave. Prison officials
dropped Mr. Masri off at a gas
station in eastern Minnesota,
where he took the bus to a
halfway house in Chicago. He
said there was no exit interview, no risk assessment. No
one in prison had tried to understand what drew him to jihadist ideology or whether he
had disengaged from it.
Mr. Masri said he regrets
his crime, calling it the “dumbest thing” he has ever done.
But he wished prison offered
rehabilitation programs that
address why people become
attracted to terrorism.
“You lock me up for all
these years. You don’t give me
anything in prison. Then you
release me,” said Mr. Masri, a
34-year-old U.S. citizen, who
pleaded guilty to attempting to
travel to Somalia to fight with
jihadists.
Whether Mr. Masri—and
other convicted terrorists to
be released from U.S. prisons—
can reintegrate is an issue posing new challenges for court
officers who are tasked with
DAVID KASNIC FOR THE WALL STREET JOURNAL
BY NICOLE HONG
Shaker Masri, convicted in a terrorism case, was released in 2017.
transitioning released inmates
back to society.
Since 2001, more than 400
individuals have been convicted in connection with international terrorism, according to Fordham University’s
Center on National Security. At
least 55 have been released
from prison, and at least 45
more are scheduled for release
within the next five years.
In many U.S. districts, convicted terrorists are released
the same way other types of
criminals are. But with limited
data on recidivism for terrorism-related crimes, experts say
that the current system is inadequate in assessing how
much of a risk these defendants pose.
“The real question,” said
Mary McCord, who previously
led the Justice Department’s
national security division, “is
does the government need to
be more proactive in ensuring
that these people won’t present ongoing threats once
they’re released?”
The Bureau of Prisons said
it offers the same re-entry opportunities for all inmates, but
added it is exploring new approaches tailored to reducing
recidivism for terrorism inmates.
Experts say the consequences of even one serious
incident of recidivism make it
especially important to reintegrate released terrorists.
Defendants who killed civil-
ians can get life in prison, but
most convicted terrorists are
charged with providing “material support,” which includes
sending money or attempting
to travel to join terrorist
groups. The maximum sentence for the crime is 20
years.
When terrorism defendants
are released, judges can order
them to be under a probation
officer’s supervision for decades, including electronic
monitoring and other restrictions.
In Minneapolis, where terrorist groups have tried recruiting foreign fighters from
the large Somali-American
community, the local probation office has trained with extremism experts from Germany and the U.K. to develop a
process for releasing convicted
terrorists that it is seeking to
turn into a national model.
Kevin Lowry, chief U.S. probation officer in Minnesota,
said probation officers should
work with psychologists, counselors and others to tackle the
underlying factors that drove
defendants to terrorism. This
can be challenging if the crime
was motivated by ideology, an
area where the government
must tread lightly to avoid
running afoul of the First
Amendment.
“We need to develop a national system to deal with
this,” Mr. Lowry said.
HANDCRAF TED MODERN CHAIN
.
A4 | Thursday, April 26, 2018
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THE WALL STREET JOURNAL.
U.S. NEWS
Ronny Jackson denies
charge in Democratic
report he wrecked car
while driving drunk
BY SIOBHAN HUGHES,
PETER NICHOLAS
AND REBECCA BALLHAUS
WASHINGTON—A document compiled by Democrats
on a Senate committee levels
new allegations against Ronny
Jackson, President Donald
Trump’s embattled nominee to
head the Department of Veterans Affairs, who said Wednesday he will keep fighting for
the job despite a growing list
of accusations including
charges of reckless drug-dispensing practices.
Dr.
Jackson,
speaking
briefly Wednesday with reporters at the White House,
rejected one of the most serious allegations contained in
the report—that he wrecked a
government vehicle after getting drunk at a Secret Service
going-away party. “I did not
wreck a car,” he said. “That
should be pretty easy to
prove.”
He said he was “still moving ahead as planned” with
the nomination. Dr. Jackson, a
Navy rear admiral, has been
White House physician under
three administrations.
The compilation of allegations by the Democratic staff
on the Senate Veterans Affairs
Committee, which was assembled from accusations by
roughly two-dozen current
and former colleagues of Dr.
Jackson, said that he had private stocks of controlled substances and suggested that he
took advantage of lax recordkeeping of drug inventories in
the White House medical unit.
Once, missing Percocet
threw the medical staff into a
panic, the report found. It was
revealed later that Dr. Jackson
had provided a large supply to
a staffer in the White House
military office, the report said.
The report said Dr. Jackson
also asked staffers to write
prescriptions for each other so
that drugs could be given to
non-beneficiaries. It said physicians felt so uncomfortable
that they refused to be part of
the culture of loose distribution of drugs to current and
former White House staffers—
and, at times, their family
members.
The
new
revelations
emerged as the White House
TOM WILLIAMS/CQ ROLL CALL/NEWSCOM/ZUMA PRESS
VA Nominee Is Facing New Allegations
Ronny Jackson said he was ‘still moving ahead as planned’ with the Veterans Affairs nomination.
was defending its nominee. Officials had asked the Senate to
reschedule a confirmation
hearing that lawmakers postponed amid concerns over
past performance and behavior.
Administration officials described Mr. Trump as “bewildered” and “surprised” by the
response to Dr. Jackson’s nom-
ination, while acknowledging
that prior vetting of the nominee could have helped stave
off problems.
Officials described the president as so far skeptical of the
allegations against his physician, whom many people close
to the administration described as very well liked in
the White House.
The report also repeated
charges that the committee’s
top Democrat, Jon Tester of
Montana, had circulated one
day earlier: that Dr. Jackson
prescribed the sleep aid Ambien and a separate wake-up
drug called Provigil on overseas flights without documenting recipients’ medical
histories. Both drugs are con-
trolled substances, the report
said, and require tracking, the
report said. Dr. Jackson’s practices were so blatant that he
was known as “the candy
man” because he could provide whatever drugs anyone
wanted without paperwork,
the report said.
Former administration officials and lawmakers said it
isn’t unusual to take Ambien
and other sleep-related drugs
on foreign trips to help navigate new time zones.
One former official who
worked in the Obama White
House said he never saw Dr.
Jackson offering Ambien to
staff, though the doctor would
prescribe medication for aides
who needed it, consistent with
his role as White House physician.
The ex-Obama official said
he never saw Dr. Jackson
drink any alcohol.
The White House on
Wednesday prepared to mount
a “full-throated defense” of Dr.
Jackson, one administration
official said.
Marc Short, the White
House’s
legislative-affairs
chief, said Wednesday that the
White House would be “asking
for the opportunity to be able
to tell his story.”
EPA Chief to Face
Grilling at Capitol
SANDY HUFFAKER FOR THE WALL STREET JOURNAL
BY LOUISE RADNOFSKY
AND HEIDI VOGT
Central American migrants have been gathering in Tijuana, Mexico. Most are expected to seek asylum in the U.S.
Migrants Prepare to Reach Border
BY ALICIA A. CALDWELL
TIJUANA, Mexico—Sitting
in a crowded, tin-roofed migrant shelter within sight of
the U.S., Ana Suaso said she
was ready for her monthlong
journey from Honduras to end.
She and her three children
have covered more than 2,000
miles by foot, by train and finally by bus with hundreds of
other Central Americans who
made up a caravan of migrants
that has caught the attention,
and raised the ire, of President
Donald Trump.
Ms. Suaso and nearly 130
other Central Americans arrived at the Tijuana shelter
Tuesday. She said they were
fleeing violence, corruption and
SKY
Continued from Page One
strong first-quarter earnings
growth buoyed by its Winter
Olympics and Super Bowl
broadcasts, which offset its
fourth straight quarter of cable
TV subscriber losses.
A major consideration for
Comcast to pursue deals is its
languishing stock price. Though
its shares rose 2.7% Wednesday,
they are down 19% since late
January, wiping out more than
$38 billion in market value.
Comcast Chief Financial Officer Michael Cavanagh said on
the quarterly earnings call that
the company was unlikely to
use its stock to make deals
when the price is at these levels. He said the company’s
strong balance sheet will give it
flexibility to consider opportunities “at times like this.”
If Comcast chooses to go
hostile for the Fox assets, Comcast would need to woo Fox investors, which may not be easy.
Comcast has had conversations
with several shareholders in the
wake of its Sky bid, including
poverty in their home countries. As many as 300 more
Central Americans are expected
to reach Tijuana in the next day
or so. They plan to head
through the border city’s downtown to the international crossing point on Sunday. Nearly all
are expected to ask for asylum.
This isn’t the first time a
large group of Central Americans have made the trip together, but this effort gained
particular attention after Mr.
Trump repeatedly denounced
the group on Twitter and said
it was evidence of a crisis at
the U.S.-Mexico border. This
month, he ordered thousands
of National Guard troops to be
sent to the border.
“I have instructed the SecBritish investor TCI Fund Management, known for its activism, people familiar with the
situation said.
TCI recently built a roughly
$3 billion stake in Fox, owning
more than 4% of its shares, putting the firm among the company’s top shareholders, people
familiar with the situation said.
As of December, TCI had held
0.7% of Fox’s class A common
shares, according to FactSet.
The next disclosure would likely
come in a May filing.
In recent weeks, TCI founder
Chris Hohn spoke on the phone
with Comcast Chief Executive
Brian Roberts and probed about
Comcast’s interest in launching
a public bid for Fox’s assets,
people familiar with the situation said. Mr. Roberts didn’t respond, the people said.
Other TCI officials have
also had conversations with
Comcast’s investor relations
team that left Comcast executives with the clear indication
that TCI wants the cable company to continue its pursuit of
Fox, the people said. Mr. Hohn
said by email that he didn’t
urge Mr. Roberts to go hostile
in pursuit of Fox’s assets.
retary of Homeland Security
not to let these large Caravans
of people into our Country,”
Mr. Trump tweeted Monday.
“It is a disgrace. We are the
only Country in the World so
naive! WALL.”
Homeland Security Secretary Kirstjen Nielsen said
Wednesday that officials are
monitoring the caravan and
are “doing everything within
our authorities to secure our
borders and enforce the law.”
She said: “If you enter our
country illegally, you have broken the law and will be referred for prosecution.”
The number of people caught
crossing the Mexican border illegally reached record lows in
the first few months of Mr.
Trump’s presidency. Though arrest figures, the best estimate of
how many people are trying to
sneak into the U.S., have
steadily risen since last summer,
they remain at lows last seen in
the early 1970s.
Ms. Suaso said she decided
to flee with her children, a girl
and two boys ranging in age
from 8 to 14, because of gang
violence in Honduras.
Ms. Suaso said she had
heard that Mr. Trump doesn’t
want her and others in her
group crossing the border.
That won’t stop her, she said,
adding that she has the right
to ask for asylum in the U.S.
“It’s not up to Trump if I
make it,” she said in Spanish.
“It’s up to God.”
WASHINGTON—Embattled
Environmental
Protection
Agency Administrator Scott
Pruitt faces an all-day grilling on Capitol Hill on Thursday, as the White House
weighs his performance amid
allegations involving his
spending habits and ethics.
Mr. Pruitt is under investigation for his spending on office furnishings, personnel
moves, travel costs, security
practices and the link between
his housing and a lobbyist. The
White House, inspector general
of the EPA, House oversight
committee and Government
Accountability Office have
been looking at these issues.
Travel issues alone have already felled two cabinet members: Tom Price at the Department of Health and Human
Services and David Shulkin at
the Department of Veterans Affairs.
Now Mr. Pruitt is at risk of
ebbing support even among
conservative backers, who have
begun hedging their praise.
They said he needs a strong
performance on Thursday to
shore up his position.
“I’ve been pleased with the
job Administrator Pruitt has
been doing—rolling back regulations and restoring the EPA
to its proper size and scope,
but these latest reports are
new to me,” said Sen. James
Inhofe (R., Okla.), a longtime
ally who didn’t specify which
reports had drawn his concern.
President Donald Trump, a
Republican, has stood by Mr.
Pruitt, noting he has had success implementing the White
House’s deregulatory agenda.
Under Mr. Pruitt’s watch, the
EPA has eased restrictions on
Clouds over Comcast’s Sky
Since late January, Comcast has lost more than $40 billion in market value as investors questioned the
strategic rationale for chasing Sky and grew worried over mounting cable-TV cord-cutting.
$44 a share
42
Comcast share price year-to-date
40
38
36
34
32
Jan. 24:
Reveals a third straight
quarter of cable-TV
subscriber losses
Feb. 11:
WSJ reports Comcast is
contemplating reviving
its pursuit of Fox
30
January 2018
February
Feb. 27:
Announces plans to make a
$31 billion bid for Sky
April 19:
Fox discloses that it rejected a 16% higher Comcast
bid in favor of Disney, due to regulatory concerns
March
Sources: FactSet (share price); staff reports
Mr. Murdoch and his family
have a 39% voting interest in
Fox. Their economic interest,
which is what would count in a
shareholder vote on the Disney-Fox merger, is roughly 17%.
The Murdoch family is also a
major shareholder in News
Corp, the parent company of
The Wall Street Journal.
Wednesday:
Reveals formal
offer for Sky
April
THE WALL STREET JOURNAL.
Comcast is also watching
closely the government’s antitrust case against AT&T Inc.’s
proposed purchase of Time
Warner Inc., which is playing
out in court. If AT&T wins,
Comcast would feel more emboldened to make a move, the
people said.
Comcast is offering £12.50
($17.47) a share for Sky, or 16%
more than Fox’s £10.75-a-share
bid. On the earnings, call, Comcast executives assured investors that it would be a sound
investment, highlighting Sky’s
broadband service and original
programming arm to emphasize
it is much more than a satellite
TV provider.
power-plant emissions, suspended a clean-water rule advanced by Mr. Trump’s Democratic predecessor, pulled out of
the Paris agreement on climate
change, and championed a plan
for more permissive auto-emissions standards.
“He has been a very key
player in advancing the president’s agenda but some of his
transactions and transgressions
against logic deserve explanation,” said Ken Blackwell, who
as domestic policy chief during
Mr. Trump’s transition backed
Mr. Pruitt for the EPA job.
In his prepared testimony
for his hearing in front of the
House Energy and Commerce
Committee panel, Mr. Pruitt
doesn’t address any of the issues that have sparked controversy, highlighting instead
his effort to make a “more efficient and effective EPA.”
Mr. Pruitt has indicated that
aides made key decisions, not
him, on pay increases for top
advisers and his first-class airplane travel. He has noted that
his agency’s ethics officer
signed off on his lease agreement, which critics have said
was improperly below market
rates and had ties to a lobbyist.
The ethics office has since said
it is revisiting the issue.
An administration official
said on Wednesday that Mr.
Pruitt faced a “very consequential day,” and that he had significant obstacles to overcome.
Mr. Pruitt’s allies are stepping up a defense of his service
on several fronts.
Sen. Chuck Grassley, an Iowa
Republican, said he has no interest in seeing him dismissed
in large part because of the
time it would take to fill the position. He blamed Democrats for
blocking nominees, saying
they “filibuster everything.”
Mr. Roberts on Wednesday
said Comcast loved its core
businesses, adding that “anybody who is viewing this as
some diversion from that is not
reading us properly.”
British regulators have held
up Fox’s takeover bid of Sky as
they examine whether it would
give Mr. Murdoch and his family too much influence in U.K.
media. News Corp publishes
three major British newspapers.
Regulators are expected to
deliver a final recommendation
on Fox’s proposal May 1, and
then the British government
will decide whether to approve
the merger outright, approve it
with conditions, or reject it.
For the quarter, Comcast’s
growth was powered by its NBCUniversal media unit, where
revenue rose 21% to $9.5 billion.
Comcast lost 96,000 cable TV
customers, compared with a
gain of 42,000 in the prior-year
quarter.
Quarterly profit rose 21% to
$3.1 billion, or 66 cents a share,
up from $2.6 billion, or 53 cents
a share, a year ago.
—Ben Dummett
contributed to this article.
.
THE WALL STREET JOURNAL.
Thursday, April 26, 2018 | A5
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A6 | Thursday, April 26, 2018
* ****
THE WALL STREET JOURNAL.
U.S. NEWS
BY STACY MEICHTRY
WASHINGTON—It was a
duel to see which president—
Donald Trump or Emmanuel
Macron of France—could
shower the other with more
public affection.
There was a flurry of hugs,
hand-holding and an impromptu episode of presidenton-president grooming that
set the scene for a finale of air
kisses.
Mr. Macron had come to
Washington for the first state
visit of the Trump presidency
on a mission to persuade Mr.
Trump to soften his opposition to the Iranian nuclear accord; lower trade tensions;
and coax the U.S. back into the
fold of international cooperation.
The Frenchman was paving
the way for visits by leaders
with frostier relations with
Mr. Trump—German Chancellor Angela Merkel is due at
the White House on Thursday—and following in a long
line of French heads of state,
from Charles de Gaulle to
François Mitterrand, who have
come to Washington to joust
with presidents and Congress.
Mr. Macron swept into
Washington amid plenty of
buzz about the close relationship between Mr. Trump and
the young European leader.
The visit was a marked contrast with a visit by Ms.
Merkel last year, when the
German leader and Mr. Trump
generated headlines by failing
to shake hands.
If Mr. Macron—a 40-yearold former investment banker
and amateur pianist with a
flair for stagecraft—couldn’t
win over Mr. Trump, officials
said, than no foreign leader
could.
What caught French officials by surprise was Mr.
Trump’s willingness to respond in kind, standing his
ground on policy differences
while hovering over the young
French leader like a doting father. At one point, in the Oval
Office, Mr. Trump noticed a
speck on Mr. Macron’s coat
jacket.
“We do have a very special
relationship. In fact, I’ll get
that little piece of dandruff
off. You have a little piece,”
Mr. Trump said. “We have to
make him perfect. He is perfect.”
Not long after, Mr. Trump
pivoted to one of the deepest
divides between the two
men—the Iranian nuclear accord—calling it “insane.”
French media traveling
with Mr. Macron buzzed with
speculation over whether Mr.
Trump’s attention to Mr. Macron’s upkeep was an attempt
by one alpha male to dominate
another.
At a news conference following the talks, Mr. Macron
proposed a “new deal” to preserve the Iranian accord while
containing Tehran’s nuclear
activity in the future and its
influence across the Middle
East. He then locked hands
with Mr. Trump and reeled
him in for a Gallic peck on the
cheek.
Charm is a technique Mr.
Macron has practiced his entire career, first as a deal-
PABLO MARTINEZ MONSIVAIS/ASSOCIATED PRESS
Macron Style
Is Tested in
Visit to U.S.
French President Emmanuel Macron, in an address to Congress on Wednesday, urged the U.S. to maintain its global role.
Leader Sees Trump
Set to Leave Accord
WASHINGTON—French
President Emmanuel Macron
said it was his “bet” that President Donald Trump would withdraw the U.S. from the Iran nuclear deal, a move he said
would lead to a period of
heightened tensions with an
outcome that was hard to predict.
Mr. Macron traveled to
Washington this week hoping
to persuade Mr. Trump to stay
in the 2015 accord.
After meeting with Mr.
Trump on Tuesday, Mr. Macron
maker and then as the protégé
of former President François
Hollande.
Mr. Macron first drew Mr.
Trump’s attention with a
white-knuckled handshake at a
laid out a proposal for an expanded agreement with Iran.
He said Wednesday that this
so-called new deal was designed to provide a framework
for discussions and not leave a
void should Mr. Trump decide
by his May 12 deadline to withdraw.
Earlier Wednesday, Mr. Macron told a joint meeting of
Congress that France wouldn’t
leave the deal without a viable
replacement.
Speaking to a small group
of reporters Wednesday afternoon, Mr. Macron said he didn’t
know what Mr. Trump would
decide but “I think he will get
rid of it on his own.”
Mr. Macron used the ad-
dress to Congress to issue a
plea to Mr. Trump and the U.S.
to maintain its role as a global
defender of democracy and human rights, warning American
lawmakers of a “critical moment” in which international institutions could crumble.
“If we do not act with urgency as a global community, I
am convinced that the international institutions, including the
United Nations and NATO, will
no longer be able to exist,” Mr.
Macron said, referring to the
North Atlantic Treaty Organization. He added that authoritarian countries “will then fill the
void we leave.”
—Stacy Meichtry
and Felicia Schwartz
North Atlantic Treaty Organization conference in Brussels
last year. He then doubled
down by inviting the American leader to join him at a
Bastille Day military parade.
They visited the tomb of Napoleon Bonaparte and dined—
with their wives—inside the
Eiffel Tower. That trip made
such a deep impression on Mr.
Trump that he returned home
Lawyers Discuss Interview With Mueller
NIGER
Continued from Page One
associate of Adnan abu Walid
al-Sahrawi, the leader of Islamic State in the Greater Sahara, an affiliate of the extremist movement.
They later returned to a village near Tongo Tongo, and
after conducting their meeting
with local officials, were ambushed by roughly 50 attackers, a two-hour attack that
killed two Green Berets, two
soldiers assigned to assist special-operations forces and five
Nigerien soldiers.
The attack put a spotlight
on the expanding U.S. footprint in Africa, with most of
the efforts aimed at training
local forces battling Islamic
State and al Qaeda-affiliated
groups. There are roughly
6,000 U.S. troops spread
across the continent, according to the Pentagon, including
800 in Niger.
In the months since the ambush, the U.S. military has
moved some of the troops
tasked with advising local
forces in Africa away from the
front lines and back into command centers.
U.S. officials said earlier
this month that those changes
weren’t the result of the Niger
Rudy Giuliani with then-candidate Donald Trump in September 2016
ing to another person familiar
with the matter. The meeting
was first reported by the
Washington Post.
The former New York City
mayor has known Mr. Mueller
for decades, as has Ms. Raskin,
who worked in the Justice Department’s Organized Crime
and Racketeering Section’s
incident, but to increase the
safety of military personnel
operating in those environments, where there is limited
support if troops come into
contact with enemy forces.
The report didn’t find fault
with the relaxed military operational authorities granted under President Donald Trump.
He approved recommendations from Defense Secretary
Jim Mattis and others to allow
commanders at lower levels to
have decision-making power,
according to officials. There is
no indication that the rules
changes contributed to the incident, said officials who saw
the report.
The report includes a series
of directives from Mr. Mattis
that will apply broadly across
the military to provide guidance on training, operational
discipline and to reinforce
normal protocols within the
chain of command. The aim is
to avoid a repeat of the missteps leading up to the Niger
operation and reduce the
chances that such incidents
happen again, the officials
said.
The Special Operations
Command, U.S. Africa Command and the Army all will be
given approximately 10 “primary directives” from the Pentagon chief, the officials said.
Those organizations will have
Boston office in the 1980s,
when Mr. Mueller served as
the assistant U.S. attorney for
the Justice Department’s Massachusetts office.
Mr. Trump’s lawyers have
spent the past several months
discussing with Mr. Mueller’s
team the parameters of a possible interview, which Mr.
Trump had been eager to do.
The Federal Bureau of Investigation’s raid of properties
tied to longtime Trump lawyer
Michael Cohen earlier this
month drew the president’s ire
and brought a “reset” to the
team’s negotiations. Among
the new concerns: that the
president could be questioned
about any matters related to
Mr. Cohen or Mr. Trump’s
business, according to people
familiar with the matter.
The special counsel is investigating possible collusion
between the Trump campaign
and Russia, as well as whether
the president sought to obstruct justice by, among other
actions, firing former FBI Director James Comey last
spring while the agency’s Russia probe was under way. Mr.
Trump has denied collusion
and obstruction, and Moscow
has denied election meddling.
One question the president’s legal team is seeking to
answer is whether the special
counsel’s team has “made any
conclusion about credibility,”
Mr. Giuliani said. “Do they favor Comey over Trump in
terms of credibility?”
Mr. Trump has accused Mr.
Comey, who has met with Mr.
Mueller’s team, of lying about
their interactions, including
one in which Mr. Comey has
said the president asked him
for loyalty. Mr. Comey also
testified about that encounter
under oath to Congress.
“The president is convinced
that if he tells his story to a
decent fair-minded arbiter, the
whole thing will be over,” Mr.
Giuliani said.
The legal team is still trying
to reach an agreement on
what questions could be asked,
according to people familiar
with the discussions. While
the team had once considered
responding to written questions from the special counsel,
the lawyers have since concluded that Mr. Trump will either sit for an in-person interview, or not do one at all,
according to one of the people.
U.S. ARMY SPECIAL OPERATIONS COMMAND/REUTERS
President Donald Trump’s
lawyers are seeking to determine whether special counsel
Robert Mueller has an “open
mind” about the Russia investigation, as they negotiate the
terms of a possible interview
with the president.
The legal team—which last
week added former New York
City Mayor Rudy Giuliani, a
longtime Trump ally, and Florida attorneys Jane and Marty
Raskin—met with Mr. Trump
this week in Washington to
discuss the strategy for negotiations with Mr. Mueller going forward, according to people
familiar
with
the
discussion.
“Does the special prosecutor really have an open mind?”
Mr. Giuliani said in an interview with The Wall Street
Journal. “We’re trying to assess their good faith.”
On Tuesday, Mr. Giuliani
met with Mr. Mueller’s team to
discuss the interview, accord-
MIKE SEGAR/REUTERS
BY REBECCA BALLHAUS
Staff Sgt. Jeremiah W. Johnson, left, Staff Sgt. Bryan C. Black, Staff Sgt. Dustin M. Wright and Sgt.
La David Johnson were killed during a two-hour firefight in Niger, West Africa, on Oct. 4.
four months to demonstrate
their efforts to solve problems
highlighted by the report.
The report will include separate memos with conclusions
and assessments from Mr.
Mattis, from the Joint Chiefs
of Staff and from the Africa
Command. The report’s release was delayed several
times as various Pentagon offices weighed in on the review.
The report has been months
in the making, and includes diagrams, maps, testimony from
dozens of individuals and
other supporting material, including video taken from cameras attached to the soldiers’
helmets, the officials said.
Two copies of the classified
version of the report have
been provided to two reading
rooms on Capitol Hill for lawmakers. A declassified version
will be released publicly in
coming days after family
members are briefed on its
contents and following briefings to lawmakers.
One of the four Americans
killed, Sgt. La David Johnson,
was missing for nearly two
days after the attack. Army
Staff Sgt. Bryan C. Black, Staff
Sgt. Jeremiah W. Johnson and
Staff Sgt. Dustin M. Wright
also died during the attack.
The four slain soldiers’ actions
during the operation and under ambush were considered
valorous, the officials said.
The final military briefing,
for Sgt. La David Johnson’s
widow, is expected next week,
according to officials. She is
expected to be accompanied
by Rep. Frederica Wilson (D.,
Fla.), a friend of the family.
Mr. Trump’s condolence
phone call to Mrs. Johnson
sparked a controversy last fall.
Ms. Wilson, who was in the
car with Mrs. Johnson when
she received the call, said that
the president was insensitive
to the widow, and that the call
upset her. Mr. Trump’s chief of
staff, John Kelly, said during a
White House appearance that
Ms. Wilson had politicized the
call. Ms. Wilson stood by her
account of it.
requesting a military parade
of his own.
What had blossomed between the two leaders, Mr.
Macron told Fox News, was a
“very special relationship,” coopting a term that British
prime ministers have deployed
to cozy up to U.S. presidents.
Despite his entreaties, Mr.
Macron was leaving Washington without a clear signal the
U.S. would stay in the 2015 international accord to curb
Iran’s nuclear program in exchange for sanctions relief. He
also failed to garner any assurances that Mr. Trump
would drop his threats to impose tariffs on European aluminum and steel.
Speaking to reporters
Wednesday, Mr. Macron said
of his relationship with Mr.
Trump, “I have my own style
and your president has his
own style—that’s a marriage
of the two styles.”
—Michael C. Bender
contributed to this article.
Cohen to
Invoke Fifth
In Stormy
Daniels Suit
BY SARA RANDAZZO
LOS ANGELES—President
Donald Trump’s personal attorney Michael Cohen told a federal court here Wednesday he
will assert his Fifth Amendment rights against self-incrimination in a civil case because
of a continuing criminal investigation against him in New York.
The filing came in a California civil lawsuit brought by
former adult-film actress
Stephanie Clifford against
Messrs. Trump and Cohen. Ms.
Clifford, known as Stormy
Daniels, sued to invalidate a
2016 agreement barring her
from discussing an alleged sexual encounter with Mr. Trump
in exchange for $130,000. Mr.
Cohen made the payment using a Delaware company called
Essential Consultants LLC,
which is also named as a defendant in the case.
Attorneys for Mr. Cohen are
asking U.S. District Judge S.
James Otero to halt the lawsuit in light of a criminal investigation against Mr. Cohen
by federal prosecutors in New
York. Judge Otero said during
a Friday hearing in Los Angeles that Mr. Cohen needed to
file an affidavit with the court
before he would consider
slowing down the case.
Mr. Cohen said in the affidavit filed Wednesday that he realized his Fifth Amendment
rights would be implicated on
April 10, a day after Federal
Bureau of Investigation agents
searched his home, office and
hotel room. During the raids,
he said in the filing, the FBI
seized electronic devices and
documents “which contain information relating to the
$130,000 payment to Plaintiff
Stephanie Clifford at the center
of this case, and my communications with counsel, Brent
Blakely, relating to this action.”
Michael Avenatti, an attorney for Ms. Clifford, called the
affidavit a “stunning development” in a tweet Wednesday.
The criminal investigation
into Mr. Cohen is probing potential bank fraud and campaign-finance violations in
connection with the payment
to Ms. Clifford and his taxi
business, The Wall Street
Journal has reported.
.
THE WALL STREET JOURNAL.
NY
Thursday, April 26, 2018 | A6A
.
A6B | Thursday, April 26, 2018
NY
THE WALL STREET JOURNAL.
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THE WALL STREET JOURNAL.
Thursday, April 26, 2018 | A7
* *
WORLD NEWS
Yemen Rebels Target Saudi Oil
The recent flurry of
attacks represents a
shift from a previous
focus on cities
DUBAI—Yemeni rebels have
begun to aggressively target
Saudi Arabian oil facilities in
attacks that threaten the kingdom’s economic engine and
add another layer of geopolitical tension that is helping
push oil prices to their highest
levels since 2014.
The Houthi rebels say they
have attacked Saudi Arabian
Oil Co. installations using missiles and drones at least eight
times since the beginning of
March. The latest attack was
Monday when Houthis said
they fired missiles at a Saudi
oil port near the Yemen border. Saudi forces said the missiles were intercepted and
there were no casualties.
The barrage of attacks has
edged the three-year conflict
with the Houthis uncomfortably close to the core of the
Saudi economy, crystallizing
the risks to the region’s oil industry. By striking a blow to
Saudi wealth, the Houthis
hope to inflict disproportionate damage on an enemy that
is stronger militarily but
hasn’t been able to dislodge
the rebels in Yemen.
Saudi Arabia leads a military coalition at war since
2015 with the Houthis, whom
they see as proxies of their regional rival, Iran. The Houthis
have controlled Yemen’s capital, San’a, since ousting a
Saudi-supported government,
and skirmishes along the countries’ border have kept the coalition engaged in the conflict.
Saudi forces have shot down
several Houthi missiles aimed
at oil installations, with no casualties reported. Aramco, as
the Saudi national oil company
is commonly known, has denied
any disruption to its operations.
BY FARNAZ FASSIHI
YAHYA ARHAB/EPA-EFE/REX/SHUTTERSTOCK
BY ASA FITCH
AND SUMMER SAID
British
Academic
Detained
In Tehran
Pro-Houthi fighters in San'a, Yemen’s capital. Houthis said they fired missiles at a Saudi oil port near the Yemen border on Monday.
An April 3 attack on a
Saudi-owned oil tanker traveling up the Red Sea underlined
the threat. Using an unknown
munition, the coalition said
the Houthis put a hole in the
tanker’s side but didn’t cause
a spill. The incident raised
fears the Houthis would use
their position north of Bab-elMandeb—the strait between
Yemen and East Africa—to
disrupt oil-tanker traffic heading toward the Suez Canal.
The threat that such an attack could cause the YemenSaudi conflict to erupt into a
wider regional battle with Iran
is contributing to higher oil
prices. Brent, the international
benchmark for crude, broke
through the $75-a-barrel level
this week. Venezuela’s collapsing oil industry and President
Donald Trump’s threats to end
the Iran nuclear deal are also
driving prices up.
The attacks have targeted a
range of Saudi oil facilities, including a refinery and storage
tanks in Jizan, near the Saudi-
Targeting Aramco
Jeddah
Mecca
Attacks launched or claimed
against Saudi Arabian Oil Co.
by Houthi rebels.
SAUDI
ARABIA
1 Jizan
3
Red S ea
March 17, 2018: Company facilities
March 31, 2018: Company facilities
April 5, 2018: Storage tanks
April 11, 2018: Company facilities
April 23, 2018: Oil terminal
2
1
2 Najran
March 22, 2018: Company facilities
April 11, 2018: Distribution terminal
San’a
ERITREA
YEMEN
3 Red Sea
April 26, 2017: Oil terminal
April 3, 2018: Oil tanker
ETHIOPIA
Aden
Source: Staff Reports
Yemen border, and a distribution facility in nearby Najran,
according to the official
Houthi news agency.
Most of them were carried
out using the recently unveiled
Badr-1, a short-range munition
Gulf of Ad en
THE WALL STREET JOURNAL.
the Houthis describe as a missile but which experts say is
likely an unguided rocket.
Aramco is considering security changes in light of the attacks, Saudi officials say. “It is
definitely a new type of threat
that has not been previously
considered,” one official said.
Even a moderately successful
attack could have implications
for Saudi Arabia’s oil industry
and budget and for oil markets.
The government expects to
earn about $131 billion this year
from oil, accounting for half of
its budgeted spending.
The Houthi strategy was
meant to send “a message to
the Saudi authorities that we
are able to attack their strategic economic institutions if
they will not stop the war
against our country,” said Loai
al-Shami, a Houthi spokesman.
For almost a year until
March, the Houthis had largely
steered clear of oil facilities,
focusing on Saudi cities including Riyadh and Mecca with
longer-range missiles. Before
that, the Houthis had targeted
Aramco facilities on occasion—
including in April 2017, when
Saudi forces blew up a drone
boat fitted with a warhead as
it careened toward an Aramco
oil distribution terminal.
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TO WASTE.
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problem-free IT and headline-free cybersecurity. Let Splunk turn your machine data
into answers - like we do for more than 15,000 customers around the world.
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© 2018 Splunk Inc.
UNITED NATIONS—Iran arrested a British-Iranian dual
citizen who traveled to Tehran
from London on an invitation
to speak at an academic workshop, according to friends of
his family and human-rights
organizations.
The arrest of Abbas Edalat,
a professor of computer science and mathematics at Imperial College in London,
comes at a time of tense relations between Iran and the
West over the fate of the nuclear deal.
Europe has assumed the
role of liaison between Tehran
and Washington, appealing to
U.S. President Donald Trump
to remain committed to the
deal and to Iranian officials to
negotiate for a broader agreement touching on regional policy and ballistic missiles.
Iran holds nearly a dozen
dual and foreign nationals in
prison, including two other
British citizens, five Americans, one Austrian and one
Swede. They have been
charged with espionage and
threatening national security
and sentenced to a decade or
more of prison.
Mr. Edalat has brought
computers from Britain and
given them to Iranian children
in need. He is an antiwar and
anti-sanctions activist.
Security forces raided his
family home in Tehran on
April 15 and arrested him, according to friends of the family
and human-rights organizations. The charges against Mr.
Edalat are unknown and he has
had no access to a lawyer,
friends of the family said. Iranian officials haven’t commented on his arrest, and Iran’s
Mission to the U.N. didn’t respond to a request to comment.
.
A8 | Thursday, April 26, 2018
THE WALL STREET JOURNAL.
* *
WORLD NEWS
North Korea Nuclear Test Site Collapsed
Underground facility
that Pyongyang has
pledged to close may
be unusable anyway
Shenyang
Punggye-ri
nuclear
test site
NORTH
KOREA
BY JEREMY PAGE
Pyongyang
Seoul
Sea of Japan
(East Sea)
SOUTH
KOREA
100 miles
Busan
100 km
JAPAN
THE WALL STREET JOURNAL.
KCNA/YONHAP/NEWSCOM/ZUMA PRESS
BEIJING—A large part of
North Korea’s underground
nuclear test facility, which
leader Kim Jong Un pledged to
close, is unusable anyway due
to the collapse of a cavity inside the mountain after the
last blast there, Chinese scientists say.
Seismologists involved in a
soon-to-be-published study
also warned that another blast
in the same spot and with
similar yield could cause “environmental catastrophe.”
Another study led by Chinese seismologists and published this month also concluded that a secondary
tremor shortly after the blast
was caused by the cavity’s collapse, but didn’t judge
whether the Punggye-ri test
site could still be used.
Mr. Kim said last week he
was suspending nuclear and
missile tests and closing the
Punggye-ri facility, where all
six of his country’s nuclear
tests took place. His announcement was welcomed by
the U.S., South Korea and
China as a positive step in the
run-up to an inter-Korean
summit on Friday and a
planned meeting between Mr.
Kim and U.S. President Donald
Trump by June.
U.S. officials and North Korea watchers, however, are debating how meaningful Mr.
Kim’s moves are. Some see
them as major concessions
RUS.
CHINA
North Korean leader Kim Jong Un, seated in an undated photo, said last week he would suspend nuclear and missile tests.
and others, arguing that Punggye-ri is unusable, call them
empty gestures designed to
gain leverage with Washington
and Seoul while remaining determined to retain his nuclear
weapons.
Mr. Kim hinted he wouldn’t
be giving up nuclear weapons.
He celebrated the completion
of his nuclear-missile program, calling it a “miraculous
victory.” And while he pledged
not to carry out further longrange missile tests, he made
no mention of shorter-range
missiles that would be capable
of striking U.S. allies in South
Korea and Japan.
Soon after the sixth and
largest blast in September,
satellite images suggested that
one part of the site, a 7,200
foot granite peak called Mount
Mantap had diminished in
height. Some U.S. and South
Korean experts suggested that
tunnels inside the mountain—
where five of North Korea’s six
nuclear tests took place—had
collapsed, rendering much of
the site useless.
Now, the two Chinese studies give credence to that
theory. They both used data
from seismic monitoring stations in China and abroad to
analyze the initial 6.3-magnitude tremor caused by the
blast and another smaller
tremor 8½ minutes later.
Both studies concluded that
the second tremor, of 4.1-magnitude, was caused by the collapse of damaged rock above
the blast cavity inside the
mountain, rather than another
explosion or a tectonic shift.
“The occurrence of the collapse should deem the underground infrastructure beneath
mountain Mantap not be used
for any future nuclear tests,”
said an abstract for the first
study, led by researchers at
the University of Science and
Technology of China, or USTC.
Past tests caused previously
inactive tectonic faults in the
area to reach a state of “criti-
cal failure,” according to the
abstract presented at a meeting of the American Geophysical Union in December, posted
to the group’s website.
The researchers warned
that a nuclear test of similar
yield to September’s “would
produce collapses in an even
larger scale creating an environmental catastrophe,” according to the abstract.
Punggye-ri is less than 50
miles from the Chinese border,
and Beijing has been ramping
up its monitoring for radioactive fallout in recent years, out
of concern, analysts have said,
that contamination could provoke a public outcry and force
the government to harden its
approach to Pyongyang.
Chinese officials have said
that no contamination has
been detected so far in the aftermath of the tests.
The USTC study was accepted on Monday for publication in the American Geophysical
Union’s
journal,
Geophysical Research Letters.
The journal said the paper
would be published on its
website in the next few days.
A USTC official said the two
lead authors couldn’t comment because of the sensitivity of the subject, and referred
questions to their supervisor
and co-author, Wen Lianxing, a
seismology professor at Stony
Brook University in New York.
Prof. Wen said the version
to be published in Geophysical
Research Letters wouldn’t include the wording about
Mount Mantap being unusable
for future tests, and the potential environmental catastrophe
if it was. He didn’t respond
when asked why those words
had been removed.
South Koreans Temper Their Goals for Talks Suspected
Cyberattack
BY JONATHAN CHENG
AND YUN-HWAN CHAE
Younger South Koreans have far less affinity for the North than their
forebears. Perception of North Korea by age
One of us/neighbor
CARL COURT/GETTY IMAGES
SEOUL—Expectations for
lasting progress are decidedly
modest here as President Moon
Jae-in of South Korea heads
into talks with North Korean
leader Kim Jong Un on Friday.
After years of disappointments and failed negotiations,
a harder attitude prevails: One
of the main goals now, for
South Korea’s government and
its people, is simply a lowering of tensions following a
year of brinkmanship.
Unification of the two Koreas is widely seen here as a
more remote prospect than
when the two sides’ leaders
first met in 2000.
It is also a prospect that is
viewed with trepidation.
A central concern for South
Koreans, who built a wealthy
capitalist economy while their
northern kin faced repression
and starvation, is whether the
costs of unification might be
too high. Many South Koreans
have come to regard a dramatic
change to the political status
quo as an unwelcome threat to
the country’s prosperity.
Mr. Moon is 65 years old,
his parents are from the
North, and his life has been
shaped by the division of the
peninsula. He has made closer
ties with Pyongyang a tenet of
his political career and calls
Generational Shift
18.7
Stranger/enemy
University’s Shorenstein AsiaPacific Research Center.
A younger generation of
South Koreans largely sees itself as culturally separate from
the North. Roughly half of
South Koreans in their 20s
view the North as a stranger or
enemy, according to Asan’s poll,
twice the rate of the previous
generation in the same poll.
Mr. Moon and his closest
advisers, in contrast, came of
age under the authoritarian
South Korean governments of
the 1970s and 1980s, and tend
to be more supportive of engagement with the North.
This time around, said Kim
Ji-yoon, a senior fellow at Asan,
“a unification policy emphasizing ‘oneness’ and homogeneity
wouldn’t be well received by the
younger generation.”
ers, advertisers and lawmakers questioning whether the
company sacrificed security
and privacy in pursuit of relentless growth.
On Wednesday, executives
uniformly defended Facebook’s
business model, saying it was
possible to deliver targeted
advertising without violating
users’ privacy. Facebook allows users to turn off some
targeted ads, but not all.
“Advertising and protecting
people’s information are not
at odds,” Ms. Sandberg said.
“We do both.”
Mr. Zuckerberg appeared
twice in front of U.S. lawmakers this month in hearings
centered on the Cambridge
Analytica episode, and Facebook has redoubled efforts to
stamp out abuse.
Still, most analysts and investors believe additional regulation is inevitable, although
it isn’t clear what form it will
take or what impact it would
have on Facebook’s bottom
line.
Mr. Zuckerberg told lawmakers that he was open to
some forms of regulation but
added that too many rules
could impede American tech
companies from competing
head-to-head with Chinese rivals.
In one indication of how
tougher oversight could limit
growth, Facebook Chief Financial Officer David Wehner said
Wednesday that average
monthly and daily user growth
in Europe could be flat or
down as a result of new privacy regulations scheduled to
go into effect there in May.
Earlier this week, Google’s
parent company, Alphabet—
Facebook’s biggest rival in the
online-ad space—reported a
profit for the first three
months of the year that
topped expectations, but investors grappling with the
company’s higher expenses
sent the shares down 4.8%,
the stock’s worst session in
more than two months.
However, Alphabet executives played down the expected impact of the European
rules, saying its search ads
rely less on the type of personal targeting that will be
limited by the regulation.
32.0%
49.3
30s
51.2
40s
66.9
8.5
50s
62.0
7.6 30.4
18.9
29.9
9.8
24.6
28.5
Source: Asan Institute for Policy Studies poll of 1,200 respondents conducted Oct. 10–Nov. 14
2017; margin of error: +/-2.8 pct. pts.
THE WALL STREET JOURNAL.
the southeastern city of Ulsan.
North Korea will “end up stabbing us in the back,” he said.
South Koreans in their 20s,
who came of age as North Korea neared the ability to
threaten the region and the
world with nuclear-tipped
missiles, regard a war as far
more likely than their parents,
according to a poll released
last week by the Asan Institute
for Policy Studies, a private
Seoul-based think tank.
Some in this threat-hardened country began crafting
emergency backup plans over
the past year as North Korea
advanced its weapons program
and threatened the U.S. with
nuclear attack.
The mood was very different 18 years ago, when leaders
of both Koreas met for the first
time. In June 2000, a backdrop
of optimism prevailed amid
hopes of progress toward unification.
“A new age has dawned for
our nation,” South Korea’s
then-president, Kim Dae-jung,
said on his return from the
meeting with Kim Jong Il in
Pyongyang. “We have reached
a turning point so that we can
put an end to the history of
territorial division.” His efforts
won him a Nobel Peace Prize.
That ebullience has all but
evaporated. “That was the first
time, and you could be more
optimistic,” said Daniel Sneider,
a visiting scholar at Stanford
BY TIMOTHY W. MARTIN
SEOUL—A suspected North
Korean cyberattack on Turkish
banks in March is broader in
scope than originally believed,
and has expanded to a global
data-theft campaign targeting
nations including the U.S. and
Australia, according to a new
cybersecurity analysis.
The hacking campaign,
identified as Operation GhostSecret by cyber researcher
McAfee LLC, now spans 17
countries and many industries.
The attacks highlight how
hackers linked to Pyongyang
have evolved beyond their traditional focus on military secrets and cyber provocations.
From roughly March 14 to
March 26, suspected Pyongyang-linked hackers sought to
obtain sensitive information
from a variety of industries:
critical infrastructure, telecommunications, health care,
higher education and others.
McAfee, which released the report on Wednesday, said most
of the attacks were in the
Asia-Pacific region.
The cyberoffensive remains
active, McAfee said. As with
nearly all digital assaults, it is
difficult to know exactly what
was taken.
20s
60s+ 61.7
A platform bears colorful goodwill messages near the Korean DMZ.
economic engagement with
the North a precursor to eventual unification.
He has also said his meeting
with Mr. Kim this week is essential for peace. Details are
being worked out for a subsequent summit between Mr. Kim
and President Donald Trump.
Messrs. Moon and Trump
both face the question of
whether North Korea can be
trusted in negotiations aimed at
persuading it to relinquish its
nuclear weapons in exchange
for economic inducements.
“I think the talks this week
will just be a show,” said Park
Gyu-sik, a 29-year-old from
Other
Called Wider
PROFIT
Continued from Page One
investing to make sure our
tools are used for good,” Chief
Executive Mark Zuckerberg
said during a call with analysts. “And we also need to
keep moving forward, building
new tools to help people connect, build community and
bring the world closer together.”
Facebook added about 70
million monthly users during
the first three months of the
year, bringing its overall user
base to 2.2 billion, up from
2.13 billion at the end of 2017.
The Menlo Park, Calif.,
company also said it would
buy back an additional $9 billion in shares, adding to the
$6 billion previously authorized.
In after-hours trading
Wednesday, Facebook shares
rose about 7%. Since a record
high in early February, the
company’s shares had fallen
more than 18% before the
earnings release.
Facebook’s earnings report
marks the first snapshot of
how the company’s ties to political-data firm Cambridge
Analytica are affecting the Silicon Valley giant’s business.
Cambridge Analytica aided
the Trump campaign in 2016
and allegedly bought data
about tens of millions of Facebook users from an outside
developer. The incident, disclosed in mid-March, highlighted Facebook’s at times lax
oversight of how outside developers handled user data
they extracted from the platform.
It also sparked anger toward the site and prompted a
#deletefacebook campaign.
Cambridge Analytica has denied wrongdoing.
Much of the fallout happened after the quarter ended
in March and isn’t fully reflected in the earnings report.
But Facebook Chief Operating
Officer Sheryl Sandberg said
Wednesday that the company
hadn’t seen a “meaningful
trend” of advertisers fleeing
the platform amid the criticism of its privacy practices.
ANDREW HARNIK/ASSOCIATED PRESS
FROM PAGE ONE
Mark Zuckerberg told lawmakers he was open to some regulation.
Major advertisers “were
very aware of the controversies swirling and wanted to
know more about what other
brands were doing,” said Andy
Taylor, associate director of
research at data marketing
firm Merkle. “But really, in
terms of making moves, advertisers are more in a waitand-see mode.”
Mr. Taylor added that most
advertisers generally remain
happy with Facebook’s prod-
ucts. He noted that its struggles haven’t yet provoked the
same kind of outrage toward
advertisers as last year’s controversy surrounding Alphabet
Inc.’s YouTube and its placement of ads adjacent to videos
with objectionable content.
The uproar over Cambridge
Analytica is the latest episode
to spur questions over Facebook’s reach. The period since
the 2016 presidential election
has been tumultuous, with us-
.
THE WALL STREET JOURNAL.
Thursday, April 26, 2018 | A9
WORLD NEWS
Anti-Semitism Trial Rattles Pakistan’s Democracy
Flap Ends German
Music Awards
BY BOJAN PANCEVSKI
BERLIN—The organizers of
Germany’s version of the
Grammys, the Echo, said they
would no longer bestow the
high-profile awards, two
weeks after one of this year’s
prizes went to a rap duo that
peppers its lyrics and videos
with anti-Semitic words and
images.
The decision came after
several past Echo laureates,
including Argentine-born conductor Daniel Barenboim, the
musical director of the Berlin
State Opera, said they were returning their awards in protest at the accolade granted to
German rappers Kollegah and
Farid Bang at a high-profile
televised ceremony on April
12, which happened to be Holocaust Remembrance Day.
Pressure had risen on Germany’s Federal Association of
the Music Industry, the group
of recording companies behind
the Echo event, to respond after a string of suspected antiSemitic attacks fanned concern about the return of
widespread anti-Jewish sentiment to the country that under Hitler’s rule planned and
executed the Holocaust.
“What happened around
this year’s Echo…cannot be
undone, but we will make sure
that such a mistake is never
repeated again,” the BVMI said
in a statement Wednesday.
For several leaders of Germany’s Jewish community,
the decision to cancel future
awards was too little too late.
“Today’s decision to end
the award was neither brave
nor proactive,” said Dr. Moshe
Kantor, president of the European Jewish Congress, suggesting it should have never
gone to the duo in the first
place. He called for more nonJews in Germany to speak up
and act against anti-Semitism.
The issue has become a political one. “We must win the
fight against anti-Semitic offenses,” Chancellor Angela
Merkel said last week. She was
speaking after a 19-year-old
Syrian refugee, who was later
arrested, was filmed assaulting a yarmulke-wearing Israeli
in Berlin. The victim later
identified himself as an Israeli
Arab who said he was testing
a friend’s assertion that it was
too dangerous to wear a skullcap in Germany.
A jury of musicians and industry insiders selected Kollegah and Farid Bang, a wildly
popular rap duo, as the winner
of this year’s Echo in the urban
German rappers won
despite tracks that
refer to Auschwitz and
Jewish moneylenders.
category. The jury cited artistic freedom in choosing the
duo from among Germany’s
five best-selling rap acts of
2017, despite their having long
faced accusations of spreading
anti-Semitic stereotypes.
The two’s “0815” track on
their recent album “Young,
Brutal and Good-Looking 3”
earned particular criticism
from Jewish leaders and politicians for the line “my body
more defined than that of an
Auschwitz inmate.” One track
says, “I’ll lend you money but
never without an explosive
Jewish interest rate.”
The rappers say they aren’t
anti-Semitic.
Kollegah—the
professional name of 33-yearold Felix Blume, who converted
to Islam as a teenager—posted
a video on YouTube, saying he
was critical of Israel and its
politics, not the Jewish people.
ISLAMABAD, Pakistan—A
clash between former Prime
Minister Nawaz Sharif and
Pakistan’s military and judicial
branches is shaking the country’s fragile democracy.
As a verdict looms in Mr.
Sharif’s corruption trial, and
politicians, generals and judges
compete to be seen as Pakistan’s saviors, the nucleararmed nation of more than 200
million people risks instability.
Mr. Sharif, a three-time
prime minister, said in an interview that Pakistan’s long
struggle to put down the roots
of democracy is in danger,
with elections due this summer. There is a “judicial vendetta” against him, he said,
adding “this is a battle of democracy versus tyranny.”
Mr. Sharif’s supporters accuse the military and judiciary
of working together behind
the scenes to first oust him
from office last year and then
try him on corruption charges.
They say that no corruption
has been proven, and that the
charges are an attempt to undercut a leader who sought to
assert civilian supremacy, pursue peace with rival India, and
rein in support for jihadist
groups by the armed forces—
which the military denies.
But critics of Mr. Sharif view
the trial as a significant step toward holding elected representatives accountable. Mr. Sharif’s
party and the other main established party, the Pakistan Peoples Party, both have had allegations of corruption against
them, which they have denied.
The chief justice of the Supreme Court, Saqib Nisar, said
last week that all the judges
on the court would resign if
they felt democracy was
threatened. “We are totally independent,” said Mr. Nisar.
“We will fight for your rights.”
The spokesman for the military, Maj. Gen. Asif Ghafoor denied any political interference
by the military and added that
the army “stands with all state
institutions for whatever support is required under the constitution.” Gen. Qamar Bajwa,
The Face
of Change
FAISAL KAREEM/EPA/SHUTTERSTOCK
BY SAEED SHAH
Supporters of former leader Nawaz Sharif in February wore headbands that read ‘blind justice.’
Jockeying for Position
With an election due this summer,
Nawaz Sharif's party retains a clear lead.
Voting intentions for Pakistan's main political parties, March 2018
Pakistan Muslim League-N
36%
Pakistan Tehreek-e-Insaf
24%
Pakistan Peoples Party
17%
Favorability ratings for rival party leaders
60%
55
Nawaz Sharif
Pakistan Muslim
League-N
50
45
40
35
30
2015
’16
’17
’18
Imran Khan
Pakistan
Tehreek-e-Insaf
Source: Gallup Pakistan polls, most recent of 2,000 respondents
conducted March 2018; margin of error +/- 3 pct. pts.
Photos: Agence France-Presse/Getty Images
THE WALL STREET JOURNAL.
the army chief, told a group of
Pakistani journalists last
month that he had “saved democracy” but warned that the
cycles of misgovernance must
end, according to an account in
a Pakistani newspaper.
The maneuvering of the
military and judiciary against
Mr. Sharif’s party has left the
credibility of the coming election in question, said Ahmed
Bilal Mehboob, president of
the Pakistan Institute of Legislative Development and Transparency, an independent think
tank in Islamabad. “The institutions perceiving themselves
as saviors of the system are in
fact the destruction of the system,” said Mr. Mehboob.
Mr. Sharif also faces a fierce
political rival. Imran Khan, a
cricketer turned politician who
brought the Supreme Court
case that led to Mr. Sharif’s
ouster, is hoping his Pakistan
Tehreek-e-Insaf party can break
the two-party system in the
coming election with a promise
to clean up corruption.
The Supreme Court removed
Mr. Sharif as prime minister
last year, and ordered his trial.
That case is due to conclude by
mid-May, before elections expected in late July or August.
The Supreme Court banned him
from heading his Pakistan Muslim League-N political party.
Even lawyers sympathetic to
Mr. Sharif say that, given the
Supreme Court’s decisions
against him, the lower court
trying the former prime minister for corruption is most likely
to convict him. A Supreme
Court judge is monitoring proceedings. Mr. Sharif could be
sentenced to up to 14 years if
found guilty, lawyers said.
“The case is very hollow,
but if they are determined to
convict me, I have hardly any
choice in that,” Mr. Sharif said.
His daughter and political
heir, Maryam, faces the same
charge, which she also denies.
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THE WALL STREET JOURNAL.
A10 | Thursday, April 26, 2018
Empowering Our Young
Agents of Positive Change
DOW JONES BRING YOUR CHILD TO WORK DAY
APRIL 26, 2018
DOW JONES WELCOMES
Abhinav Maganti | Adam Booker | Adelynnn Talley | Aesha Patel | Akhil Arun | Akshita Dhinesh | Alan Thomas | Alex Gao | Alexa
M. Cruz | Alexa Mardonov | Alexandra Walkley | Alexis Biruk | Alison Nealen | Aliyah Francis | Allegra Michaels | Amelia Bowers |
Ananya Iyer | Andrew Basso | Andrew Liguori | Anisha Tahbildar | Ankith Namireddy | Anna R. Fonseca | Annika Cookson | Anthony
Ferello | Anthony Gonzalez | Antonio Carlucci | Anurag Tilwe | Anushka Bhatt | Archie Smith | Arin Shetty | Aryan Sawant | Ava
McKithen | Ava Rayne Smith | Benjamin Bedard | Braeden San Filippo | Breanna Kokolus | Brendan Schwartz | Brennan Ferello |
Brianna Thompson | Calvin Prokap | Camille Carlucci | Camryn McCreary | Carson Thomson | Chelsea Silber | Chiara Hendrawan |
Christopher Fortini | Ciara Robinson | Clementine Hanrahan | Coco Breen | Colin Barker | Collin Duck | Connor Lee | Dakshil Saini |
Daniel Hernandez | Daniel Jakab | Daniel R. Cruz | Danielle Dixon | Danielle Eckert | Derek Mulder | Devan Allem | Divit Bhattarai |
Drew Forfar | Eden Boyd | Edward Delmar | Eleanor Morath | Eliana Ackerman | Elias Ghatak | Elisabeth Dixon | Ellie Mahan | Emma
Dunn | Emma Lichtenstein | Emma Pham | Enid Lahart | Eshan Kadam | Eva Marie Meola | Gabriella Mardonov | Garrett Ribner |
Giovanni Guerriero | Haley Davis | Hannah Strauss | Harvey Smith | Hasini Thupakula | Iva Reljin | Jack Menake | Jack Otter | Jacob
Linder | Jacob Silber | Jake Rempkowski | Jared Miniman | Jazmin Ortiz | Jesse DeJesus | Jillian Gosselin | Johari Ongweny | John
Hanrahan | Jonathan Epstein | Jordan Smith | Jordan Thigpen | Joseph A. Fonseca | Jourdan Rennie | Julia Scotto | Julian Ghatak
| Julian Zamudio | Juliette Bravin | Katherine Izzo | Kavin S Kumar | Kendall Thompson | Kennedy McCain | Kenneth Rudy | Kenzie
Kiley | Kyle Spelman | Leo Keeler | Lexie Kiley | LilyAnne Zinsli | Lorby Castelly | Lucia Weissman | Lucy Mauldin | Luke Brodsky |
Luke Capaldi | Luke Loftus | Luther Keoki Beckett | Lyla Gonzalez | Marcello Carlucci | Marguerite Anne Mauldin | Matt Cecilione |
Matthew Azer | Matthew Saganowski | Max Zembur | Mia Parker | Michael Spelman | Mishka Kapoor | Myles Willis | Myriam Areche
| Nate Baer | Nate Liguori | Nathaniel Azer | Nayan Kundu | Nicholas (Nicki) Conti | Nicholas Azer | Nicholas Mennella | Nicolas
Mandrackie | Nika Berg | Nishita Dhinesh | Noa Linder | Noah Blakeslee | Olivia Davis | Olivia Gonzalez | Omar Areche | Owen Grin
| Owen Mahan | Paige Blue | Pearl Song | Peyton Seow | Poesy Breen | Pratham Verma | Prathmesh Ghorpade | Prisha Ghorpade |
Quincy McCain | Rachel Miniman | Rachel Nixon | Rahm Kosman | Rowan de Wet | Ruby Kerridge | Ruthvika Kona | Rylee Ulozas |
Saanvi Bhattarai | Sai Samhita Vaitla | Sami Irwin | Sara Reljin | Sarah G. Fonseca | Sasmit Mandloi | Sean Dillon | Selah Feliciano
| Shamus Morris | Shane Donoghue | Shantanu Kurma | Shreyas Nathala | Skyler Johnson | Soorya Subramani | Sophia Delmar |
Sravya Kunamneni | Sreya Rajesh | Stella Becker | Stella O’Neill | Suhani Mehra | Teigan Ferello | Timmy Fitzpatrick | Toby Baer |
Tom Fitzpatrick | Trent Snyder | Trisha Joshi | Tyler Van Camp | Vansh Kadam | Vincent Arena | Vivaan Srivastava | Zachary Duck
© 2018 Dow Jones & Co., Inc. All rights reserved. 6DJ6483
.
THE WALL STREET JOURNAL.
Thursday, April 26, 2018 | A11
* * * * * *
WORLD NEWS
Antibiotic Benefits Very Young in Africa
Researchers surprised
by azithromycin’s
efficacy in a study of
190,000-plus children
BY BETSY MCKAY
Researchers have identified
a low-cost medication that
they say could protect millions
of young children in poor nations from dying of pneumonia, malaria and other preventable diseases.
But they and other experts
acknowledge they will have to
decide carefully how best to
deploy the new tool—an antibiotic widely prescribed in the
U.S. for bacterial infections—
because heavy use could fuel
antibiotic resistance. Taking
antibiotics at a young age may
also increase the risk of other
health problems later on,
some experts say.
In a large study published
Wednesday in the New England Journal of Medicine, researchers gave prophylactic
doses of azithromycin, an anti-
biotic also known by the brand
name Zithromax, to children
between the ages of 1 month
and 5 years in three sub-Saharan African countries. The
children received one dose every six months for two years.
A control group received a
placebo. More than 190,000
children in total were involved
in the study, which was funded
by the Bill & Melinda Gates
Foundation.
At the end of the test period, the death rate of the children who got the drug was
13.5% lower than those who
didn’t get it, the researchers
found. The effect was greatest
in the youngest children: mortality was 24.9% lower in 1-to
5-month-olds who got the antibiotic than in those who
didn’t.
Almost all of the reductions
were in Niger, the country in
the study with the highest
mortality rate. The other two
countries that participated
were Tanzania and Malawi.
The magnitude of the effect
surprised researchers, who
said it potentially signals a
Saving Lives
An inexpensive antibiotic widely used in the U.S. reduced the number
of deaths among children under the age of five in some of the world's
poorest communities, a new study shows. Childhood mortality
remains high despite vaccines and other advances since 1990.
Mortality rate for those under the age of five
Deaths per 1,000 live births
40
200
Study group
who received
Placebo
Azithromycin
30
Sub-Saharan Africa
150
20
100
10
50
0
0
World
North America and Europe
Niger
Malawi
Tanzania
1990
’95 2000 ’05
’10
’15
Sources: The New England Journal of Medicine, trial of 190,238 children ages 1-59 months for
four twice-yearly distributions of azithromycin or placebo distributed December 2014-January
2017 (study groups); United Nations Inter-agency Group for Child Mortality Estimation
(regions by year)
THE WALL STREET JOURNAL.
powerful new tool to save children in places with high death
rates. Childhood mortality has
dropped 56% world-wide since
1990, thanks largely to vac-
cines. But 5.6 million children
under 5 years old died in 2016,
according to the United Nations, which aims to end preventable deaths in children
under 5 by 2030. The leading
causes of death include pneumonia, malaria, and preterm
birth complications.
“There are still some areas
where more than 10% of kids
don’t make it to their fifth
birthday,” said Thomas Lietman, senior author of the
study, professor of ophthalmology and director of the
Francis I. Proctor Foundation
at the University of California,
San Francisco. “People are
thinking, what can we do?”
The benefits of azithromycin will have to be weighed
against the risk that widespread use could promote antibiotic resistance, which can
render bacteria-killing drugs
ineffective, Dr. Lietman said.
Azithromycin has been administered prophylactically for
two decades to communities
in parts of Africa, the Middle
East and Asia en masse to prevent trachoma, a bacterial infection that causes blindness.
Some bacteria have developed resistance to azithromycin during these programs, but
“when we stop our trachoma
program, that resistance goes
away after a few years,” Dr. Lietman said. He and his colleagues are examining data
from the NEJM study for signs
of resistance.
The idea for the childhoodmortality study arose when researchers and public-health
officials noticed that fewer
children were dying in communities receiving azithromycin in trachoma programs.
The NEJM study didn’t
probe exactly how the drug
prevented deaths. But azithromycin is known to work
against pneumonia and other
major
childhood
killers.
Azithromycin has also reduced
infections in pregnant women
and their babies in studies.
Experts who weren’t involved in the study called its
findings important.
“There are not many things
we can do to have that much
impact on child survival,” said
Karen Kotloff, professor and
head of the infectious disease
and tropical pediatrics division at the University of Maryland School of Medicine.
CHINA
TURKEY
EUROPEAN UNION
Ministry: Firms Cool
On U.S. Investments
Central Bank Raises
An Interest Rate
Brussels Sticks to
Existing Nuclear Deal
The Commerce Ministry said
threatened investment restrictions from the U.S. are denting
the enthusiasm of Chinese businesses, with some canceling or
slowing plans to invest in the
American market.
Ministry spokesman Gao
Feng said Beijing is prepared to
take unspecified actions in response if the U.S. goes ahead
and introduces the restrictions.
“We are sticking to our bottomline thinking and are prepared to
take action,” he said Thursday.
Mr. Gao said rising uncertainties about the situation are causing some Chinese firms to reconsider their U.S. investment plans.
He didn’t cite specific businesses.
—Liyan Qi
The central bank tightened
policy in a bid to contain galloping inflation—a challenging
course to take when President
Recep Tayyip Erdogan is seeking
re-election on a pledge to keep
the economy humming thanks
to low interest rates.
The central bank on Wednesday raised one of its main rates,
the late-liquidity lending rate, to
13.5%, from 12.75%.
The increase, economists said,
was indispensable if Turkey aims
to rein in a fast-growing economy that is displaying many
signs of overheating, from double-digit inflation to a rapidly
weakening national currency, the
lira.
—Yeliz Candemir
Foreign-policy chief Federica
Mogherini said Europe would adhere to the existing Iran nuclear
agreement, apparently distancing
herself from a French proposal
for a new arrangement to address the concerns of the Trump
administration.
As Tehran reiterated its
stance that the deal wasn’t up
for negotiation, Ms. Mogherini
said the existing deal is preventing Iran from developing a nuclear weapon.
Her comments came hours
after French President Emmanuel Macron advocated a new,
broader pact with President
Donald Trump, who has ridiculed
the existing deal finalized in
2015.
—Julian E. Barnes
OZAN KOSE/AFP/GETTY IMAGES
WORLD WATCH
SOLEMN SERVICE: A piper plays at dawn in Çanakkale, Turkey, to mark ANZAC Day, remembering
Australian and New Zealand war dead, especially those of the Gallipoli campaign of World War I.
.
A12 | Thursday, April 26, 2018
THE WALL STREET JOURNAL.
* *
IN DEPTH
MEGYN
was given the job and ratings
actually went up. After Katie
Couric gave up anchoring “CBS
Evening News,” she was replaced by the less-known Scott
Pelley, who has subsequently
been replaced by the even
lesser-known Jeff Glor without a
hit to ratings. Those anchors
commanded significantly lower
salaries than Ms. Sawyer and
Ms. Couric.
“Andrew Lack made the mistake with Megyn Kelly [from the
beginning] with the decision to
hire her to an anachronistic celebrity contract in the mistaken
belief that star quality could
turn into ratings gold,” said Andrew Tyndall, a television news
analyst and consultant.
Mr. Lack, who persuaded Ms.
Kelly to join NBC, defended Ms.
Kelly’s morning and prime-time
roles at the network. “Megyn
has continued to prove that
she’s a tremendously skilled,
hard-hitting journalist, who
adds valuable insight and analysis to all she touches,” he said in
a statement.
Since joining “Today,” Ms.
Kelly is averaging 2.4 million
viewers an episode, 18% below
SCOOT
Continued from Page One
tal, a fiery debate has exploded
over the pervasive presence of
electric scooters.
Last month, a trio of wellfunded startups began flooding
the city with hundreds of electric for-rent scooters that can
travel up to 15 miles an hour—
starting at just $1 a ride. Riders
pick them up and leave them
most anywhere.
The whimsical transit option
has turned sidewalks into
breeding grounds of conflict,
pitting pedestrians against fans
of cheap car-free transportation.
In compact San Francisco,
where a freewheeling culture often collides with anti-tech sentiment, scooters are joining an array
of
unconventional
transportation from self-driving
cars to electric unicycles.
“All hell broke loose” after
the scooters seemingly arrived
overnight in San Francisco, said
the city’s supervisor, Aaron Peskin, who is spearheading legislation to regulate scooter-sharing
programs. It is, he said, “a Wild
West situation.”
One resident sent Mr. Peskin
a photo of his bloodied toe—injured after tripping on a scooter
tossed in front of his house.
Source: Nielsen
THE WALL STREET JOURNAL.
scooters to 50 cities this year.
These aren’t mopeds. They
are like children’s Razor scooters—with a platform attached to
small wheels and a handlebar—
but souped-up with electric motors. Because some riders say
they feel more vulnerable on a
small scooter than on a bicycle,
the other scooter companies say
they instruct riders to stay off
the sidewalk, park at the edge of
the sidewalk and wear helmets.
Bird offers to ship riders a free
helmet.
The massive pileup of opinions spilled into City Hall last
week, as angry residents faced
off with scooter proponents.
Karen Fishkin, who sits on a
local seniors’ organization, took
to the lectern to plea for regulation. “We’ve been down here to
discuss with you Segway, robots
on the street, and now scooters,” she said. “Pedestrians are
kind of feeling like we’re getting
left out in the cold.”
Happy riders seemed confused that people were so indignant about a small two-wheeled
vehicle, noting they take cars off
the road.
Andrew Lee, 33, said he used
to enjoy riding a mini-Segway,
but found it difficult to lug
around. The day after he tried a
rental scooter, “I gave away my
Segway,” he said. Now he rides
scooters daily.
Even before scootermania, a
stroll through downtown reveals
a combination of autonomous
cars, electric skateboards, electric unicycles, electric-assisted
bikes, and of course, the famous
cable cars. The occasional Segway makes an appearance, while
the fad of a few years ago, hov-
erboards, has mostly crashed
and burned.
In the scooter skirmish, multiple sides are sparring. Pedestrian advocates are bickering
with pro-transit residents. City
officials, meanwhile, are upset
the companies didn’t wait for
them to write the rules.
The transit fracas kicked off
last fall when Mr. VanderZanden’s company sprinkled scooters around Santa Monica, Calif.,
informing the Santa Monica
mayor through a LinkedIn message. After a spat with city officials, scooter-share is now legal
there, and popular.
Mr. VanderZanden says Bird’s
customers totaled 90,000 miles
of scooter rides in the first
three weeks in San Francisco.
A walk around the city’s financial district reveals a constant stream of scooters. Riders
weave in between pedestrians
on sidewalks and stopped cars
on streets during rush hour, and
zip next to bikes in bike lanes—
sometimes to the ire of bikers.
Occasionally two riders are
crammed onto a small scooter.
The city’s solution for taming
the Wild West? A permit program, where the city would
grant companies the ability to
rent out scooters, so long as
they follow rules. City officials
say they hope to have rules
crafted next month.
NATHAN CONGLETON/NBC/GETTY IMAGES
Celebrities have avoided the program after Ms. Kelly asked Jane
Fonda about plastic surgery during an interview about a new movie.
Last month her show received an Emmy nomination for
best informative talk show,
along with Steve Harvey, Dr. Oz,
Larry King and “The Chew.”
“I’m proud of the journalistic
work we’ve been accomplishing,”
Ms. Kelly said. “The ratings are
important, there’s no question,
but it’s not the only metric.”
Her coverage of sexual-harassment scandals has also resulted in some awkward moments, emphasizing the delicate
balance that morning show anchors need—part best friend,
part insightful guide to the
news. The dynamics of a live audience further complicate the
ability to make quick shifts in
tone between segments.
On the Nov. 8 episode, Ms.
Kelly opened her show by saying to her studio audience, “I
can’t wait to bring the cast of
‘Sesame Street’ out here, but
first, is Harvey Weinstein going
to get arrested?”
After Mr. Lauer was fired,
Ms. Kelly had a former “Today”
staffer on her show to talk
about the staffer’s consensual
affair with Mr. Lauer. Many “Today” veterans were upset, seeing it as a cheap shot at Mr.
Lauer and a ratings stunt.
“I understand that,” Ms. Kelly
said. “They loved him. They’d
been working with him for decades, and it is hard when you
care about the person who is at
the center of these stories—
trust me, I know.”
Ms. Fonda took offense at
Ms. Kelly asking about her plastic surgery during an interview
about a new movie with Robert
Redford. Ms. Fonda made jokes
and mocked Ms. Kelly several
times after that, prompting Ms.
Kelly to launch a Fox News-style
attack on Ms. Fonda.
“This is a woman who is synonymous with outrage. Look at
her treatment of our military
during the Vietnam War. Many
of our veterans still call her ‘Hanoi Jane’ thanks to her radio
broadcasts, which attempted to
shame American troops,” Ms.
Kelly said on her show.
The “Hanoi Jane” rant, as it
became known, was seen as an
extreme overreaction inside
“Today.”
Ms. Kelly makes no apologies
for firing back at Ms. Fonda.
“I’m all for turning the other
cheek but sometimes one has to
stand up for one’s self,” she
said. A spokeswoman for Ms.
Fonda declined to comment.
Now, when Ms. Kelly does
have entertainers on, they are
usually from fellow NBCUniversal-owned properties such as
Bravo’s “Real Housewives” franchise or they are C-list celebrities such as Whitney Thore from
TLC’s reality show “My Big Fat
Fabulous Life.”
Ms. Kelly said she never
wanted a “celebrity-driven show.”
“The content of my show is
driven by me and my team of
producers and not by anyone
else,” she said.
Megyn Kelly has had trouble making the shift to daytime television on ‘Today,’ with its delicate balance of soft features and hard news.
what the hour was pulling in
last season, according to data
from Nielsen. The ratings have
declined sharply for the past
two months, dipping to a low of
1.9 million, after getting a lift
from the network’s coverage of
the Winter Olympics in February. Among adults aged 25 to
54, the key demographic that
the show targets, ratings are
down 28% since last season.
Audience Slide
Change in average weekly 'Megyn Kelly Today' viewers since her
show premiered on NBC
15%
10
5
0
–5
All viewers
-11.6%
–10
Rivals have gained
–15
Ms. Kelly’s ratings are also
hurting the 10 a.m. hour of “Today” with Hoda Kotb and Kathie
Lee Gifford, according to Nielsen
data. That hour of the show is
down 6% in viewers and 19%
among adults 25-54.
The performance of “Megyn
Kelly Today” has allowed its
chief rival, Walt Disney Co.’s
syndicated chat show “Live with
Kelly & Ryan,” to more than
double its lead over NBC in that
hour to 747,000 viewers.
“I’m sure they were hoping it
was going to do better than
this,” said Stacey Schulman, an
executive vice president of consulting firm Katz Media Group.
“She is a polarizing personality.”
The “Today” franchise is key
to NBC News and its parent NBCUniversal, a unit of Comcast
Corp. “Today” generates more
than $500 million in revenue
and profits of more than $100
million annually, people close to
the show said. It is the most
successful program on the network and is the main profit center for NBC News.
“Megyn Kelly Today” is
vastly more expensive for NBC
than its predecessor. The combined salaries of previous hosts
Al Roker and Tamron Hall were
less than half of Ms. Kelly’s $23
million-a-year payday, according
to several people familiar with
the matter. Ms. Kelly declined to
comment on her salary.
The show also carries a much
higher budget, including staff
who work as Ms. Kelly’s stylist
and publicist. Some people close
to the show said it makes less
than its predecessor. An NBC
News spokeswoman said Ms.
Kelly’s show is profitable.
In November, longtime “Today” anchor Mr. Lauer was fired
after he was accused of sexual
harassment. (Mr. Lauer apologized but contested some accounts of his behavior.) Initially,
the new morning team of Sa-
–20
Age 25-54
–14.0%
–25
1
5
10
15
20
WEEKS ON THE AIR
vannah Guthrie and Ms. Kotb
drew strong numbers, but more
recently rival “Good Morning
America” on ABC has passed
“Today” in viewers.
Ms. Kelly said it is too soon to
make final judgments on her
hour. “Our show is a baby. We’re
six months old,” she said. “Morning TV is obviously new to me
and I’m figuring it out as we
go…I think any show needs about
a year to just find its footing.”
It’s not unusual for new programs to stumble out of the
gate, and given the myriad
choices viewers have on broadcast, cable and streaming services, getting attention is increasingly difficult.
Ms. Kelly has yet to find a
tone that makes sense for viewers, and she has said she wants
to be less reliant on politics. At
times, in her evening program,
she is a tough newscaster interviewing Russian President
Vladimir Putin about election
tampering. In her morning
show, she can be found doing a
Dr. Phil-esque segment asking
“throuples”—three people in a
relationship—about whether
they all fit in a king-size bed.
Ms. Kelly said that while she
loved the “throuples” episode, “I
wouldn’t say it was the future of
‘MK Today.’ ”
Ms. Kelly developed a reputation as a hard-nosed interviewer
during her more than 12 years
at Fox News. Known for her
prosecutorial approach to interviews—Ms. Kelly is a lawyer—
she often echoed the sentiments
of other conservative Fox News
Viewership of 'Megyn Kelly
Today' is down, especially with
the key demographic of females
25-54, compared with last year's
version of the show at the same
time, which featured Al Roker,
Tamron Hall and other hosts.
3.0 million
2.5
All
2.4 million,
–18%
2.0
1.5
4
5
2
25-54
742,000, –28%
1.0
0.5
Women 25-54
495,000, –28%
0
‘Today’
at 9 a.m.
2016-17
6
3
30
commentators when it came to
the “war on Christmas,” the
Black Lives Matter movement
and gay rights.
She won some fans outside
of the channel’s conservative
base when she challenged thenpresidential candidate Donald
Trump over his statements
about women during a live debate. But she has struggled to
parlay that attention into a
compelling TV personality who
resonates with daytime viewers.
Her difficulty securing an audience is a sore spot for some
local TV stations that carry NBC
programming, a group that has
historically held sway with
broadcasters’ programming decisions. At WAVE-TV, the affiliate station in Louisville, Ky., the
audience is more than 40%
smaller than what the previous
incarnation of that hour was averaging a year ago. “We’re certainly not happy with the Nielsen numbers,” said Ken
Selvaggi, vice president and
general manager of WAVE-TV.
Ms. Kelly said NBC News executives have shown no signs of
wavering in their commitment
to her nor challenged her direction for the show. “They’ve
given us a long leash,” Ms. Kelly
said. “They know that I’m finding my footing and it’s going to
take time.”
Ms. Kelly received praise
from critics and a lift in the ratings when she leaned into the
#MeToo movement, featuring
women on her show who had
made accusations against movie
Anchor Change
Hundreds of illegally parked
scooters have been impounded,
while others have ended up in
trash cans and bodies of water.
The sidewalk rage is likely a
preview of things to come
across the nation given that one
of the startups, Bird Rides Inc.,
just raised $100 million to bring
1
25
THE WALL STREET JOURNAL.
Source: Nielsen
9
7
8
SIEMOND CHAN
NBC wooed Megyn
Kelly with a threeyear, $69 million
contract.
#MeToo coverage
NATHAN CONGLETON/NBC
Continued from Page One
drop in viewers, and staffers on
other NBC News shows have
been grumbling about Ms.
Kelly’s lofty budget. Hollywood
publicists started steering their
A-list talent away from the program when a feud erupted with
Jane Fonda after Ms. Kelly
asked the actress on-air about
her plastic surgery.
Ms. Kelly’s Sunday night
newsmagazine, which premiered to disappointing ratings
last summer, has been cut to occasional prime-time specials.
NBC News Chairman Andrew
Lack’s big bet on Ms. Kelly was
a throwback to the golden age
of broadcast news when networks routinely awarded socalled star anchors huge contracts, believing the face
delivering the news was as important as the news itself.
Today, the landscape of network and cable television is so
big that there isn’t one person
who necessarily draws the kind
of audience to justify that cost,
said Marcy McGinnis, a 30-year
veteran of CBS News who is
now a consultant.
The turmoil during Ms.
Kelly’s first year at NBC, and the
high-profile exits of NBC’s Matt
Lauer and CBS’s Charlie Rose
due to sexual-harassment allegations, have shaken up morning TV news, underscoring the
big risks of high-stakes wagers
on celebrity news personalities.
With the audiences for morning and evening news shows on
a slow decline for decades, the
focus of most network news
managers is on profit margins
and reducing the high salaries
of the former era.
When Diane Sawyer stepped
down from anchoring ABC’s
“World News Tonight” in 2014,
relative unknown David Muir
mogul Harvey Weinstein, journalist Mark Halperin and others.
Ms. Kelly has also mentioned
her own experiences at Fox
News, where she alleged harassment by Roger Ailes, the late
CEO of the network, who denied
the charge. Fox News parent
company 21st Century Fox and
News Corp, owner of The Wall
Street Journal, share common
ownership.
1 Electric unicycle
4 Electric skateboard
7 Scooter
2 Bicycle
5 Electric scooter
8 Electric moped
3 Segway
6 Unicycle
9 Skateboard
Electric scooters join an array of transit options in San Francisco.
and wear no helmet, they prefer
to steer them on the sidewalks,
even though riding them there
is illegal.
Even self-professed fans bristle at riders who lack proper decorum. Daniel Singer, 18, an occasional scooter rider, said he
was walking on a sidewalk,
when he got into a face-off with
three oncoming riders on scooters. He stared them down and
gestured to the street. One rider
grimaced, then moved off the
sidewalk. “It’s a nuisance for pedestrians,” he said.
Scooters, located and paid
for with apps on phones, cost
15 cents a minute. There aren’t
any designated drop-off points;
riders just leave them when
they’re done. The scooters have
GPS, so at night, someone
drives around, picks them up
and recharges them.
Scooters sprawled in the
middle of sidewalks have drawn
ire among the aesthetically concerned. Stickers reading “HEY
DUMB F—- GET OFF THE SIDEWALK” have appeared on some
scooters, and city officials have
impounded illegally parked
scooters blocking the use of
sidewalks.
Travis VanderZanden, chief
executive of Bird Rides, said “we
weren’t quite sure what to expect” in terms of a public reaction in San Francisco. Bird and
‘Megyn Kelly
Today’ at 9 a.m.
2017-18
.
THE WALL STREET JOURNAL.
Thursday, April 26, 2018 | A12A
NY
* *
GREATER NEW YORK
MTA Board Approves Spending Increase
Commissioners voice
worries about rising
costs and a lack of
transparency
BY PAUL BERGER
Metropolitan Transportation Authority commissioners
raised concerns about rising
costs and a lack of transparency at the nation’s largest
transit agency as they voted to
increase spending on major
projects by $800 million.
An MTA staff presentation
to commissioners Wednesday
emphasized that the requested
increase in the agency’s fiveyear spending program to
$33.3 billion from $32.5 billion
requires no additional funds.
The revised budget will be
made possible, in part, by using unspent money from the
previous spending plan.
Even commissioners who
voted in favor of the amended
budget said they were concerned about recent cost overruns on major projects. In particular, they pointed to the plan
to bring the Long Island Rail
Road to Grand Central Terminal.
The budget for that project,
estimated at $4.3 billion when
it launched in 2001, has increased several times. This
month, MTA officials said
costs had risen again, by $1
billion, to $11 billion.
James Vitiello, a commissioner
who
represents
Dutchess County, noted that
the MTA carries $40 billion in
debt, $17 billion in postretirement benefit obligations and
$8 billion in unfunded pension
liabilities. “When we incur another billion dollars, alarm
bells should be going off and
we should be deeply concerned,” he said.
Scott Rechler, an appointee
of New York Gov. Andrew
Cuomo, said he wouldn’t be
surprised if costs for the project increase again before its
estimated completion in 2022.
Nevertheless, Mr. Rechler
added: “The train’s left the
station, so we have to try to
get it to its final destination
the best we possibly can.”
Commissioners also questioned transparency at the
agency. They asked why they
weren’t informed, before a report in The Wall Street Journal, that an almost $1 billion
program to renovate 32 subway stations was being scaled
back to 19 stations because of
cost overruns.
“It is indefensible that we
did not receive this information prior to it being reported
in the press,” said Commis-
sioner Veronica Vanterpool, an
appointee of New York Mayor
Bill de Blasio.
Chairman Joe Lhota said he
has worked to improve transparency since he was appointed to lead the agency last
summer by Mr. Cuomo.
“Not a second in a day goes
by when I don’t think about
transparency at this agency
and what we need to do to
provide information to all of
you,” he said.
The proposed budget increase passed the board with
two city representatives voting against. It now goes before
a state review board for approval.
The increase will be spent
on several programs, including
making subway stations more
accessible to people with disabilities and elements of an
$836 million plan to improve
subway service that Mr. Lhota
announced last year.
The city recently was forced
by the state to contribute
$400 million toward the plan.
The first phase of the initiative is aimed at attacking the
most frequent causes of delays, such as repairing the
most problematic signals, reducing water infiltration that
damages rails and a systemwide cleaning program to prevent track fires.
City Schools Get
Boost in Funding
Judges at the New York event will sample nearly 1,000 different oils from 27 countries—which entails a lot of sniffing and tasting.
Olive Oil Competition Heats Up
BY CHARLES PASSY
At the New York International Olive Oil Competition,
the most prized commodity
may be a plate of apple slices.
As 18 judges sample their
way through nearly 1,000 different oils from 27 countries
for this annual event, they frequently need to refresh their
palates. Apple slices and the
occasional spoonful of plain
yogurt typically do the trick.
Still, it is no easy task. “We
try to give each oil our focus
and attention,” said Carola
Dümmer Medina, a judge from
Santiago, Chile, at the start of
the four-day competition,
which began on Monday.
By Thursday, when the adjudicating is done, at least 200
oils will be recognized with
gold or silver honors, and a
smaller number with a “Best
in Class” ranking. There is no
actual prize money at stake,
but at a time when consumers
have become savvier about olive oil, producers say any
blessing from the competition
could boost sales.
“It’s legitimacy,” said Salvatore Russo-Tiesi, general manager of Bono, a Fairfield, N.J.based company that imports
oil from Sicily, Italy. Two of
Bono’s oils were recognized
with gold honors at the competition in 2016.
The six-year-old New York
competition, which is held at
an event space in the Union
Square area, is the brainchild
of Curtis Cord, publisher of Olive Oil Times, an online publication. Mr. Cord declined to
say how much it costs to run
the competition or whether it
makes a profit, but he noted
that entrants pay a $300 fee to
submit each oil.
Mr. Cord acknowledges
there are several other olive
oil competitions in the world,
but he says the New York City
one is distinguished by the
sheer volume of entries, which
have almost doubled since the
event started in 2012.
Mr. Cord also believes the
competition benefits from the
fact that New York isn’t an olive oil-producing region,
which removes an element of
bias that he says is a factor
with other events.
“In Italian competitions,
most of the winners are Ital-
ian. In Greek competitions,
most of the winners are
Greek,” he noted.
In any case, the judging at
the contest borders on the obsessive. Naturally, there is lot
of sniffing and tasting, but the
latter is more like a refined
slurping referred to with an
Italian term, “stripaggio.”
Along the way, the judges,
who are respected experts in
the olive oil world, try to pick
up on noteworthy flavors,
ranging from pine seeds to
camomile to pink pepper, in
each entry. They also are quick
to note defects: Yes, even in a
world-class competition, a fair
number of entries are deemed
musty, muddy or just plain
rancid, and are ruled ineligible
for an award.
Judging also requires a
high degree of concentration.
That was proved to be the
case as Monday’s deliberations
continued and the competition’s kitchen staff started
preparing the end-of-day meal
for the team. A few judges
rose from their seats in a
panic.
The issue? The judges could
smell the cooking—specifically, the rosemary seasoning
the dish—and it was playing
havoc with their senses. Turning on an exhaust fan solved
the problem.
Judges say they do work up
an appetite by the end of the
day because they aren’t “eating” all that much. But Paul
Vossen, a judge from California, said he also craves something beyond food—namely, a
cold beer.
“It just cleans your mouth,”
he said.
New York City Mayor Bill
de Blasio and City Council
Speaker
Corey
Johnson
Wednesday announced an increase in a major funding
source for the city’s public
schools, with the goal of helping many high-need students.
Mr. de Blasio said he would
increase the budget for Fair
Student Funding by $125 million. With state funds, the total
will reach $6.2 billion for the
coming fiscal year. The aid will
be divvied up among schools
based on enrollment and needs,
such as special education and
bilingual services. It can be
used at a principal’s discretion.
“We do not want to see
some schools in some neighborhoods have what they need
and other schools in other
neighborhoods not have
enough,” Mr. de Blasio said.
Many schools have gone for
years without the amount of
Fair Student Funding they are
due under a complex formula.
The average increase for
schools in the coming fiscal
year would be $115,000, with
the largest reaching about
$836,000, a Department of Education spokesman said.
The city said the increase
means all schools will get at
least 90% of the money they
are due under the Fair Student
Funding formula in the coming
fiscal year, up from the floor
of 87%. The mayor said he
couldn’t allot 100% to all
schools now because of budget
constraints. The boost affects
854 of the system’s roughly
1,800 schools, officials said.
On Thursday, the mayor is
expected to release his executive-budget proposal for fiscal
2019, set to be adopted in
June. The city’s total budget
for education is $30.8 billion.
Philip Santos, principal of
Leadership and Public Service
Union Bristles at
Mayor’s Remarks
The teachers union pushed
back against comments New
York City Mayor Bill de Blasio
made Wednesday that seemed
to question the validity of some
sexual-harassment complaints
made by Department of Education employees.
Data on sexual-harassment
allegations at city agencies between the end of 2013 and last
year show more than a third of
the 1,312 complaints, or 471,
were from Department of Education personnel. Of those, only
seven were substantiated, city
records show.
“We have to investigate everything but it is a known fact
that unfortunately there has
been a bit of a hyper-complaint
dynamic sometimes for the
wrong reasons,” Mr. de Blasio
said. “So I think that has inflated their numbers. We need
to address that cultural reality
within the DOE.”
Union officials took issue
with the mayor’s remarks.
“Our teachers have a tough
enough job that they don’t
have time to make frivolous
claims,” said Michael Mulgrew, president of the United
Federation of Teachers.
Mr. de Blasio later tried to
walk back his comments, saying on Twitter: “Let me be clear,
every single person who has
the courage to come forward
with a sexual harassment complaint deserves to be believed.”
—Kate King
High School, said his school gets
87% of what it should under the
formula. A rise could pay for a
college counselor, SAT test
preparation and other services.
“Every dollar counts,” he said.
Saying Goodbye to a Mets Legend
FRANK FRANKLIN II/ASSOCIATED PRESS
YANA PASKOVA FOR THE WALL STREET JOURNAL (3)
BY LESLIE BRODY
HONORS: A memorial Mass for Rusty Staub, who died March 29
at age 73, was celebrated Wednesday at St. Patrick’s Cathedral.
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A12B | Thursday, April 26, 2018
NY
* *
THE WALL STREET JOURNAL.
GREATER NEW YORK
Retail Rents Plunge in Manhattan Shopping Areas
Landlords are lowering their asking prices and offering more incentives as merchants balk at high amounts
BY KEIKO MORRIS
Going Down
Ground-floor, retail asking rents
for shopping corridors in
Manhattan, by square foot
Q1 2018
Q1 2017
Times Square
$1,938 a sq. foot
$2,187
1,239
1,406
Upper Madison
Avenue
RICHARD B. LEVINE/NEWSCOM/ZUMA PRESS
Retail rents in Manhattan
fell in the first quarter as
landlords adjusted pricing
and offered more remodeling
allowances, shorter terms
and options for tenants to
exit.
In all, first-quarter annual
asking rents for ground-floor
retail space declined in 13
out of 16 shopping corridors,
and the overall
PROPERTY average asking
rent for those
areas dropped
19.5% from the previous year
to $653 a square foot, according to a report from
real-estate services firm
CBRE Group Inc.
Most of the decline resulted from landlords repricing retail space down, the report said.
“If you have TI [tenant
improvement allowances] to
offer, you’re not shy. You’re
putting it up front,” said Nicole LaRusso, director of research and analysis at CBRE.
“Landlords want to make
deals.”
The continued drop in retail asking rents comes as no
surprise—as traditional companies reshape their busi-
SoHo
556
678
Meatpacking
District*
490
623
Meatpacking
District†
Upper East Side
406
453
280
342
*Washington Street, 14th to Gansevoort
streets †Gansevoort Street, Little West
12th Street, 13th Street, Ninth to Tenth
Avenues
Source: CBRE Group
First-quarter annual asking rents for ground-floor retail space declined in 13 out of 16 shopping corridors, a CBRE Group report found.
THE WALL STREET JOURNAL.
nesses to the growth in online shopping, retailers
reduce the number of brickand-mortar stores they operate. Also, merchants continue to balk at high rents.
Between 2010 and 2014, average asking rents in Manhattan jumped more than
100% across the 16 retail corridors, according to an earlier report from CBRE.
CBRE. Landlords are more
open to shorter-term leases
and provisions allowing tenants to get out of leases if a
retail concept doesn’t work.
“I think we will start to
see some more of the savvier
tenants of companies realize
we’re starting to get to a
point where they can drive
some good deals for themselves,” Mr. Goldberg said.
The average asking rent
on Washington Street between 14th and Gansevoort
streets in the Meatpacking
District dropped to $490 a
square foot from last year’s
$623, a 21.3% decrease and
the largest percentage drop
in asking rents among the
shopping corridors CBRE
tracks.
Average asking rents tum-
bled 18.1% on both SoHo’s
Broadway Avenue and the
Upper East Side’s Third Avenue, where asking rents were
$556 and $280 a square foot,
respectively.
Availability remained flat
compared with last year,
with 209 ground-floor
spaces marketed for direct
leasing. The report noted,
however, that landlords look-
ing to lease space directly
also will have to compete
with sublease space, which
has increased, according to
anecdotal reports. Some
space available for sublease
comes as retailers leave behind old quarters for better
locations, Ms. LaRusso said.
Conditions are favorable
for tenants, said Andrew
Goldberg, vice chairman at
New York City Is Getting a Pizza Museum
JOHN TAGGART FOR THE WALL STREET JOURNAL
BY CHARLES PASSY
Visitors to the pop-up Museum of Pizza will also get a slice.
New York City is slated to
get its very own pizza museum.
Nameless
Network,
a
Brooklyn-based media company, plans to launch the Museum of Pizza, or MoPi, at a
still-to-be-announced location. Billed as the “world’s
first experiential pizza adventure,” the pop-up museum
would be open from Oct. 13 to
Oct. 28, though Nameless
Network Chief Executive Kareem Rahma said the company
will consider extending the
run.
The museum will give visitors a history of the ever-popular food item, Mr. Rahma
said.
It also will celebrate pizza’s
place in pop culture through
art and interactive elements,
such as a “cheese cave” made
from silicone and a “pizza
beach” where visitors could
experience, in Mr. Rahma’s
words, “a huge wave of
cheese” via a video.
Mr. Rahma declined to reveal how much it will cost to
create the museum, though he
said the budget was in the
seven figures.
Admission will cost $35, in-
cluding a slice of pizza.
Food vendors will be on
hand for those who want to
satisfy their cravings beyond
that, he said. But he emphasized that dining will be secondary to the experience.
“It’s not a food festival,” he
said. “It’s a museum.”
The pizza museum follows
the success of the Museum of
Ice Cream, another pop-up
that sold out its run in New
York City in 2016 and has gone
on to other cities.
Similar food museums have
since been developed nationwide, and a Museum of Candy,
by the Sugar Factory restau-
rant chain, is planned for New
York.
But a pizza museum should
have special appeal in New
York because of the city’s storied connection with the dish,
said Arthur Bovino, a food
writer.
“I guarantee you this will
have a line down the block,”
he said.
Still, some say the pop-up
food-museum concept may
have a limited market and audiences could lose interest.
“It’s going to run its
course,” said Susie Wilkening,
a Seattle-based museum consultant.
MIKE SEGAR/REUTERS
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Judges Vote to Keep
U.S. Attorney in Job
Rogue Democrat
Urged to Rejoin Fold
Legislation Proposed
To Help Homeowners
Federal judges in New York
have taken the unusual step of
voting to keep U.S. Attorney
Geoffrey Berman in his job as the
chief U.S. prosecutor in Manhattan in the absence of a nomination by President Donald Trump.
Mr. Berman’s Jan. 3 interim
appointment by the Justice Department to oversee an office of
more than 220 prosecutors was
set to expire May 4.
Without a presidential nomination, judges were free to choose a
U.S. attorney to serve until a permanent appointee is confirmed.
Chief Judge Colleen McMahon
and District Court Executive Edward Friedland said in a press advisory Wednesday that the
judges chose Mr. Berman unanimously. The appointment would
be effective May 4.
The judges’ decision comes as
prosecutors in Mr. Berman’s office
oversee a criminal investigation of
Mr. Trump’s personal attorney,
Michael Cohen. In court filings,
prosecutors revealed that Mr. Cohen’s personal business dealings
are under investigation. Mr. Berman has been recused from involvement in that investigation.
—Associated Press
Gov. Andrew Cuomo on
Wednesday urged a rogue Democratic lawmaker to end his alliance with Republicans and allow
Democrats to lead the state
Senate as the battle for control
of the chamber escalates ahead
of the fall elections.
Democrats won two special
Senate elections Tuesday, giving
them 32 members in the 63-seat
Senate. But Republicans are expected to stay in control of the
Senate at least until the end of
the legislative session in June because of the support of Sen. Simcha Felder, a Democrat who
nonetheless sits with Republicans.
Mr. Cuomo released a public
letter to Mr. Felder urging him
to reconsider. He told reporters
Mr. Felder’s decision allows Republicans to block proposals to
strengthen gun-control laws, reform voting rules or rein in the
state’s campaign-finance laws.
Mr. Felder announced his intention to stay with the GOP on
Tuesday. On Wednesday, he said
he had not yet read Mr. Cuomo’s
letter. Asked by reporters if he
was open to reconsidering, he
said, “I never say never.”
—Associated Press
Connecticut’s Democratic U.S.
senators are introducing federal
legislation to help state homeowners with concrete foundations
crumbling due to the presence of
an iron sulfide.
One bill would provide $100
million over five years for states
such as Connecticut that have
programs to help repair residential structures damaged by pyrrhotite. A second proposal would
create a similar grant program
through the Federal Emergency
Management Agency.
Democratic Gov. Dannel Malloy
previously sought financial assistance from FEMA for the homeowners but was told the issue
didn’t constitute an emergency or
major disaster.
Sen. Richard Blumenthal said
he and Sen. Chris Murphy, both
Democrats, can’t wait for FEMA
“to recognize their responsibilities”
and decided to “change the law
to force them” to provide funding.
An estimated 30,000 or more
homes and condominiums built in
eastern and central Connecticut
from the mid-1980s to 2016 could
have failing foundations because
of the presence of pyrrhotite.
—Associated Press
.
THE WALL STREET JOURNAL.
LIFE&ARTS
Thursday, April 26, 2018 | A13
FILM REVIEW | By Joe Morgenstern
MARVEL STUDIOS (4)
‘Avengers’ Gets an Incomplete
WORLD-SHAKING EVENTS are
kid stuff in “Avengers: Infinity
War,” the first installment of a
two-part sequel to “The Avengers”
and “Avengers: Age of Ultron.” The
whole universe is under attack
from Thanos, an infinitely villainous villain sporting a multicleft,
prognathous chin. Universe-shaking throwdowns succeed one another with truly stupefying regularity as the Avengers and their
Guardians of the Galaxy allies take
turns rising to the challenge. But
moments that touch the heart are
few and far between in this almost-culmination of a decade of
Marvel Comics movies. The finale,
scheduled for release in May 2019,
may well bring the adventure to
fittingly grand fruition. What’s on
screen now, however, is table-setting for events to come, a groaning
board of superheroes, a superabundance of undifferentiated superpowers, and an ending that’s
more exciting than anything that
precedes it.
If you stop to think about it—
though the pounding pace of “Infinity War” doesn’t give you much
time to think about anything—
Marvel has populated this picture
with a remarkable profusion of
characters who have already made
their multiplex marks. After Thanos, impressive at umpteen feet
tall and eloquently voiced by Josh
Brolin, the list of returnees includes Chris Hemsworth as Thor;
Robert Downey Jr. as Tony Stark/
Iron Man; Chris Evans as Steve
Rogers/ex-Captain America; Chadwick Boseman as T’Challa/Black
Panther (who got cheers from my
preview audience, thanks to the
recent triumph of “Black Panther”
the movie); Chris Pratt as Peter
Quill/Star-Lord; Mark Ruffalo as
Bruce Banner/Hulk; Tom Holland
In front row, Danai Gurira, Chadwick Boseman, Chris Evans, Scarlett Johansson and Sebastian Stan, top; Tom Holland as
Spider-Man, above left; Chris Pratt, Groot (voiced by Vin Diesel), Zoe Saldana and Pom Klementieff, above right
as Peter Parker/Spider-Man; Zoe
Saldana as Gamora; and Benedict
Cumberbatch as Doctor
Strange. And those are only
the stars of the bunch.
Lesser lights shine almost
as bright. Elizabeth Olsen’s Wanda Maximov/
Thanos
Scarlett Witch has a
(voiced by
touchingly tragic deJosh Brolin)
meanor, and good reason
for it in her present circumstances.
Yet this diversity, plus a
comparable density of incident—battle after battle after battle—leads to narrative
sprawl on an epic scale. The
story, bopping around the universe, is unified only by the villain’s determination to acquire all
six Infinity Stones, or glowing keys
saved from itself by his murderous
to the cosmic kingdom. (Thanos
intercession.)
seems to be driven by a conviction
When the story begins—Anthat the regular universe, unlike
thony Russo and Joe Russo dithe Marvel Comics Universe, has
rected from a script by Christofinite resources, and must be
pher Markus and Stephen McFeely
—the Avengers are in disarray.
(That’s news to Bruce, who’s baffled by the notion that the
group broke up. “Like a band?”
he asks. “Like the Beatles?”)
Iron Man, for his part, has
been on the outs with Captain America, but the threat
from Thanos is so great
that Tony decides to enlist
Steve’s help, and calls him
on his little flip-phone.
Flip is one of the movie’s
two main modes, the other
being full-bore mayhem. “Infinity War” is often very funny,
in a self-deprecating vein, and
not just thanks to Mr. Downey,
who can get a laugh with a conjunction, or Mr. Pratt, who charms
with a raised eyebrow. Bruce
sweats and strains, to no avail at
first, as he tries to transform into
Hulk. (It’s the flip side of anger
management.) Spidey, the new boy
on the block (played by Mr. Hol-
land, the new actor in the role),
swings his way into Thanos’s
doughnut-shaped space ship, with
an inner ring that rotates like the
magnet in a gigantic MRI, and says
it smells like a new car. “I’m Doctor Steven Strange,” announces
Doctor Strange, who makes a theatrical entrance worthy of a stage
magician in a ring of fire in New
York’s Central Park. (His sententiousness is witty for a while, then
wears thin.)
In between the humor and the
action sequences—the best of the
latter involves clangorous combat
in Washington Square Park—the
film does find time for real feelings, just not a lot of them. The
most affecting encounter brings
Gamora together with Thanos,
who raised her; the most elating
moment comes when Thor, who’s
been without a hammer, gets a replacement; Chris Hemsworth may
not be the world’s greatest actor,
but he’s invincibly likable. There
are shocking deaths to be reported, but certainly not here,
and especially since you can
never be sure if those who’ve died
will stay dead from one chapter
to another.
Of all the developments in “Infinity War,” one is genuinely stunning, eerily moving and so crucial
to the climax that it can’t be revealed. I’ll say only that it calls
into question everything that may
happen next time around, which
is exactly what a climactic development should do. As for everything that happens this time
around, it’s a function—or malfunction—of the sequel’s two-part
structure. The problem is penultimateness, too much setup and too
little payoff. The solution comes,
presumably, around the same time
next year.
FILM
EVERYTHING IS BIGGER IN ‘INFINITY WAR’
MARVEL STUDIOS
BY BEN FRITZ
Benedict Cumberbatch, Robert Downey Jr., Mark Ruffalo and Benedict Wong in ‘Avengers: Infinity War.’
TWENTY-FIVE superheroes and
sidekicks.
Four intersecting story lines.
A 150-minute running time.
And a budget of about $300
million.
In an era when cinematic excess
seems to know no bounds, “Avengers: Infinity War” takes things to a
whole new level.
The film, set to open in much of
the world on Thursday, is the culmination of 18 other comic-book
movies made by Disney-owned
Marvel Studios that together have
grossed nearly $15 billion. Seeing
at least a few and ideally most of
them is strongly advised before
buying an “Infinity War” ticket.
Unsure why Chris Hemsworth’s
Thor and Mark Ruffalo’s Hulk open
the movie on a spaceship together?
You haven’t been stressing for
the past two years about whether
Robert Downey Jr.’s Iron Man and
Chris Evans’s Captain America still
despise each other after the fallout
of 2016’s “Civil War”?
And you haven’t been awaiting
the coming of Thanos, the interstellar mass murderer voiced and
motion-captured by Josh Brolin?
Then “Infinity War” may not be
for you.
You probably won’t understand
what’s going on. You certainly won’t
scream in joy when the Avengers
first visit the Black Panther’s homeland of Wakanda, or laugh hysterically when Chris Pratt’s Star Lord,
leader of the Guardians of the Galaxy, mocks Thor with a dead-on impression of his stentorian voice—reactions of thousands of fans earlier
this week at a Hollywood premiere
that shut down a city block and
filled up two theaters.
You won’t even miss Paul
Rudd’s Ant-Man or Jeremy
Renner’s Hawkeye, the only two
Marvel Studios superheroes not
present for duty.
Please see FILM page A14
.
THE WALL STREET JOURNAL.
A14 | Thursday, April 26, 2018
LIFE & ARTS
MUSIC
Folsom Prison Blues, in Spanish
Fifty years after the groundbreaking Johnny Cash concert, Los Tigres del Norte plays before inmates at the California prison
to speak to this segment of the
[prison] population—the Latinos,”
Mr. Diaz said.
James Garner, a Johnny Cash
tribute artist who performed at Folsom prison in 2008, said the prisoners at that time seemed overjoyed
to get a break from their routine.
“There’s not a lot they get to do,
and to have someone come from the
outside world is great for them,”
said Mr. Garner, 39, of Galt, Calif.
Mr. Horowitz, former president
and chief operating officer of Universal Music Group, said he and
Los Tigres got the idea to do the
Folsom concert a year ago. Mr.
Diaz was key to giving the approval, as he had grown up with
the music of Los Tigres.
Mr. Diaz’s condition for this
performance was that Los Tigres
refrain from playing its wellknown narcocorridos, or ballads
about Mexican drug traffickers. “I
knew the band and I knew their
catalog went way beyond narcocorrido music,” Mr. Diaz said.
Among the songs permitted
were “Mi Sangre Prisionera” (My
Imprisoned Blood), which told of
the heartbreak and guilt a father
felt for his son being in prison. Los
Tigres also played a Spanish version of “Folsom Prison Blues,” cowritten for the band by Mr. Cash’s
Latina daughter-in-law, Ana Cristina Cash, Mr. Horowitz said.
On the day of the concert, the
band and its entourage arrived
hours early to clear security
checks that included passing
through three gates before enter-
ing the prison yard, where their
crew set up a stage. Some inmates
who had been filmed for the documentary were allowed to mingle
with the band in Folsom’s Greystone Chapel, which Mr. Cash
made famous at the 1968 concert
when he sang a song about it written by a Folsom prisoner.
“I never thought I would have
Los Tigres del Norte right here,
talking to us like family members,”
said Luis Flores, 41, who has been
in prison since 2010 with a life sentence for second-degree murder. “It
makes me feel like I’m outside.”
As Mr. Cash did 50 years ago,
Los Tigres started off with “Folsom Prison Blues.” Jorge Hernández then addressed the audience
of around 800 inmates in Spanish
and English. “You cannot go where
we play, but we come and see
you,” Mr. Hernández said to
cheers. “It’s an honor for us.”
Then for the next two hours, one
of the most popular norteño bands
on the planet went through a set
list including “Prision de Amor”
(Prison of Love). While the prisoners seemed mostly upbeat, correctional officers kept a close watch.
“Anything can happen,” said Lt.
Jack Huey, the prison spokesman.
The band asked inmate Manuel
Mena—a former norteño musician
in prison since 1998 on a sentence
of 36 years to life for first-degree
murder—to join them on “Un Dia de
la Vez” (One Day at a Time). “That’s
beautiful!” a Latino inmate shouted
as the 50-year-old Mr. Mena sang
and played the accordion.
Los Tigres del Norte’s Jorge Hernández (with accordion) and his brother Hernán
Hernández April 17 at Folsom State Prison. Below, Johnny Cash in 1968.
Elizabeth Olsen and Paul Bettany, far
left, play superheroes Scarlet Witch
and Vision in ‘Avengers: Infinity War.’
Tom Hiddleston, near left, plays Loki,
one of the villains. Above, a poster
showing the movie’s extensive cast.
MARVEL STUDIOS (3)
Folsom, Calif.
IN 1968, “the man in black” made
music history when he recorded a
live performance for inmates at
Folsom State Prison. Fifty years
later, five men in black—the band
Los Tigres del Norte—commemorated that Johnny Cash concert
with one of their own, in Spanish.
Much has changed in the world
since the late Mr. Cash pulled out
his guitar in the Folsom cafeteria
and began singing for cheering inmates. As it was back then, life in
American prisons remains so bleak
that—like Mr. Cash—Mexican
norteño group Los Tigres del
Norte held a filmed performance
at the prison last week to help focus attention on what the members see as an enduring problem.
Mr. Cash put this 138-year-old
prison on the map with his hit
“Folsom Prison Blues” in 1955, and
again in 1968 when he appeared
before prisoners here to record a
live album. “At Folsom Prison” revived his career and stoked interest in other entertainers performing for prison audiences.
Los Tigres del Norte, known for
its norteño folk music, was interested in performing at Folsom, the
band members said, in part because
of the large increase in Latino incarcerations—they total 43% of the
130,000 inmates in the California
penal system, up from 34% in
1998—including many who are Mexican immigrants like themselves.
“We don’t want people to forget
about them,” Jorge Hernández, the
64-year-old lead vocalist and accordion player, said before he, his
three brothers and a cousin—all
wearing black in tribute to Mr.
Cash—took the stage here on a
prison yard. “I feel like I am with
them because they are my blood.”
The San Jose, Calif.-based band,
originally from Mexico, started out
in 1968 in the U.S. by playing before prisoners at a state prison in
Soledad, Calif.
Officials of the California Department of Corrections and Rehabilitation share concerns about the many
Latinos in prison and see a performance like this one, of music from
their culture, as helpful in the rehabilitation effort. That is why the request by Los Tigres del Norte and
executive producer Zach Horowitz
was the only one accepted of many
to film a concert performance
marking the 50th anniversary of the
Cash concert, said Ralph Diaz, undersecretary of operations of the
California prison agency.
Mr. Horowitz is producing a
documentary in partnership with
the band for the Spanish-language
television network Univision set
for prime-time broadcast late this
year that will include the Folsom
concert footage as well as excerpts
from interviews with 23 Latino inmates. Los Tigres performed a second concert at a women’s compound housing about 400 of the
total 2,800 Folsom inmates. Oscarwinning composer and producer
Gustavo Santaolalla is producing
the music for the documentary.
“This is a first-of-its-kind event
FROM TOP: GENE BELEY; DAN POUSH/ASSOCIATED PRESS
BY JIM CARLTON
FILM
Continued from page A13
The actual “Infinity War” story,
in which Thanos seeks six “infinity
stones” that will give him the
power to slaughter half the living
beings in the universe, was almost
secondary to those in attendance.
For many of them, the fun was
recognizing characters (“Black
Panther again? I love that guy!”)
and of geek dreams answered
(“What does Captain America say
when he meets Groot?”).
Because the Marvel Cinematic
Universe is the most popular franchise in the business, with fans in
every country that has a theater
(even Saudi Arabia, which opened
its first cinema with a screening of
“Black Panther”), “Infinity War”
doesn’t have to worry about drawing fresh faces. Presales and public
surveys indicate it will come close
to or beat the record $248 million
opening weekend of “Star Wars:
The Force Awakens.”
Unlike many Marvel ensemble
movies, where one or two superheroes take center stage and others
don’t get much time, “Infinity
War” balances its two-dozen costumed characters roughly evenly.
Though Black Panther, whose February film is still in theaters,
shows up relatively late, along
with his fellow Wakandan warriors, everyone else gets significant screen time and fight scenes
fueled by screen-filling effects.
For loyal Marvel fans who have
already spent 38 hours watching
its movies, “Infinity War” is like
the season finale to a prestige
drama. It resolves plot points that
have been building since the early
episodes and brings together beloved characters whose stories haven’t previously intersected. It
raises the stakes even higher by
killing major players.
And like all good season finales,
it ends on a cliffhanger that is certain to keep viewers eager for the
next episode—or in this case, the
next “Avengers” sequel, coming in
May 2019.
.
THE WALL STREET JOURNAL.
Thursday, April 26, 2018 | A15
LIFE & ARTS
THEATER REVIEW | By Terry Teachout
MANIC MEETING
OF THE MINDS
FROM TOP: MATTHEW MURPHY; MANUEL HARLAN
New York
TOM STOPPARD’S “Travesties,” in which James Joyce,
Vladimir Lenin and Tristan
Tzara, Dada’s founding father,
share a stage to lunatic effect,
was the unlikeliest Broadway
semi-hit of 1975 (it ran for 156
much-discussed performances).
Some theatergoers found “Travesties” impenetrably complex,
but everybody had an opinion
about it, and Mr. Stoppard was
thereafter viewed on this side of
the Atlantic as a man of consequence. Now he’s the greatest
living English-speaking playwright, more or less, and “Travesties” is back on Broadway at
last, this time in the Roundabout Theatre Company’s transfer of Patrick Marber’s 2017
London staging. The last two
Broadway revivals of Mr. Stoppard’s work, David Leveaux’s
“Arcadia” and Sam Gold’s “The
Real Thing,” were lackluster, but
this “Travesties” is a total success: The staging is outrageously
vital and the cast is as close to
ideal as it’s possible to imagine.
I couldn’t begin to summarize
“Travesties” accurately in a review three times as long as this
one. I’ll say only that it’s a
whirligig variation on “The Importance of Being Earnest” in
which Mr. Stoppard, having
taken note of the unlikely but
true fact that Joyce, Lenin and
Tzara (played here by Peter
McDonald, Dan Butler and Seth
Numrich) were all in Zurich in
1917, uses that coincidence as
the point of departure for a
farce-flavored fantasy. The play’s
real subject, one long beloved of
THEATER REVIEW | By Terry Teachout
Bringing the Magic
To Life
The most expensive nonmusical production ever to open on Broadway
rators have used up Broadway’s
time-travel quota for the rest of
the century—though there’s always something cool to see onstage, which helps a bit.
Duly noted: The British stars of
“The Cursed Child” make no effort
to speak their lines in a way that
American audiences will find comprehensible. As a result, large
chunks of the script are hard to follow. They could stand to take a cue
from Byron Jennings, the distinguished American stage actor who
plays two key supporting roles
(both of which must not be named)
and is at all times completely and
refreshingly intelligible.
Poppy Miller and Jamie Parker,
above; the company of ‘Harry Potter
and the Cursed Child,’ top
inal new story” by Ms. Rowling,
Mr. Thorne and John Tiffany, tells
what happens to Harry (Jamie
Parker) and Albus (Sam Clemmett), his rebellious young son, in
later life. (Spoiler alert: They save
the world.) To those who have
never read a Potter novel or seen
a Potter film, “The Cursed Child”
will make no sense at all. Everyone else should find the plot
trite—Mr. Thorne and his collabo-
Harry Potter and the Cursed Child,
Parts One and Two
Lyric Theatre, 214 W. 43rd St. ($20$199), 212-556-4765
Both parts play consecutively on
Wednesdays, Saturdays and Sundays
Mr. Teachout, the Journal’s drama
critic, is the author, most recently,
of “Billy and Me.” Write to him at
tteachout@wsj.com.
Tom Hollander as Henry Carr in Tom Stoppard’s ‘Travesties’
The WSJ Daily Crossword | Edited by Mike Shenk
Weather
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
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Travesties
Roundabout Theatre Company,
American Airlines Theatre, 227 W.
42nd St. ($49-$149), closes June 17,
212-719-1300
JOAN MARCUS
New York
RARELY HAS A SHOW been less
in need of good reviews, from me
or anyone else, than “Harry Potter
and the Cursed Child,” the latest
line extension of J.K. Rowling’s
franchise of novels, films and
theme parks, which has come to
New York after a stupendously
successful 2016 opening in London. This two-part, five-hour extravaganza is the most expensive
nonmusical production ever to
open on Broadway, and every dollar of the $68.5 million ponied up
by the producers is visible. The
special effects are sensational, especially if you like theatrical
“black magic,” and each one was
dutifully applauded by the audiences at the previews I saw.
Beyond that, I can do no more
than to warn those who care that
“The Cursed Child” plays like a
musical—most of the show is underscored and all of the putative
song cues are self-evident—and
might have been slightly more fun
had it been one. The script, written by Jack Thorne from “an orig-
Mr. Stoppard, is the doubleedged effect of the coming of
modernity to the West. Hence it
is as darkly serious as it is crazily funny, and you don’t have to
get all of the highbrow jokes (in
fact, you probably won’t) to relish the fizzing éclat with which
“Travesties” reminds us that
whenever artists and revolutionaries turn the world upside
down, things—and people—have
a way of getting broken.
In addition to the Broadway
transfer of the original Royal
Shakespeare Theatre production,
I’ve seen “Travesties” done
twice, by New Haven’s Long
Wharf Theatre in 2005 and Wisconsin’s American Players Theatre in 2014. All of those productions were extraordinarily
fine, and so is this one, in which
Tom Hollander is sensational as
Henry Carr, the senile British
diplomat in whose fast-crumbling memory the events of
“Travesties” purport to take
place. His eyes glitter with demented glee as he leads his colleagues through Mr. Stoppard’s
intellectual high-wire act. This is
a play in which everybody gets a
chance to do verbal handsprings,
and there’s no point in singling
out any of the supporting players, since they’re all as good as
Mr. Hollander.
You’re never going to see a
finer revival of “Travesties,” so
catch this one while you can.
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Hong Kong
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Jerusalem
Johannesburg
London
Madrid
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Mexico City
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Paris
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63
TWIN-SPEAK | By Samuel A. Donaldson
26 Word ignored by
alphabetizers
55 They’re held in
contempt
5 Growth center
27 Historic guide
58 Unoriginal
9 Fully understand
31 Tunneling
worker
59 Evasive
communication,
and a hint to
18-, 27-, 36- and
45-Across
Across
1 Ices
14 Price
performance
15 Morales of
“Ozark”
32 Thunder, on
scoreboards
33 Throw off
38 Director Daniels
39 Playing on their
court
40 Soul seller
6 Columbus sch.
44 Scoring figs.
7 Doc’s waiting
room read
46 Tennis Hall of
Fame inductee
of 1985
47 Noticeably
neglected
9 Ominous,
weatherwise
48 Facile
10 Boxer’s
accessory
49 Europe’s “City
of a Hundred
Spires”
11 Opportunity for
a single
50 Prom coifs
12 Fact, once
51 The Phantom’s
rival, in “The
Phantom of the
Opera”
13 Novel makeup
19 Take ___
(acknowledge
praise)
52 Savage
62 “Got to Give It
Up” singer
24 Like some wines
60 Body spray brand
25 Inducing shivers
28 Dedicatee of a
famous ode
61 Alternative to
EWR and JFK
64 Belly bump
42 Alternative to
DCA and IAD
66 Like many
college
textbooks
65 Vet
45 Shred
67 They’ll take you
down fast
23 Cheer for Callas
50 Populous area,
slangily
68 College
honcho
24 Literary sequel
set aboard a
whaling ship
54 “We Have the
Meats” chain
53 Chop ___
4 DNA source,
often
58 Nudity
41 Second-smallest
of a geographical
quintet
22 “The Second
Coming” poet
37 A toddler may
throw one
23 Eagles’ org.
17 Stretch of high
moorland
43 Chump
35 Misty
3 Newman or
Oldman
56 Footnote abbr.
36 “Buzz off!”
20 Abu Dhabi
dignitaries
2 Not cooped up
21 Colonial rule until
1947
16 Chopper spinner
18 Source of
needless anxiety
34 “You’ll really like
this!”
8 “Well,
whoop-de-do!”
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s...sunny; pc... partly cloudy; c...cloudy; sh...showers;
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45 36 pc 43 35 pc
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65 53 t
71 51 pc
Austin
78 49 s
79 51 s
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68 51 pc 63 49 r
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82 51 s
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57 43 r
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71 54 r
73 51 c
Chicago
65 42 pc 61 38 pc
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57 41 pc 61 39 c
Dallas
74 52 s
75 51 s
Denver
57 32 pc 70 38 s
Detroit
63 41 s
58 39 c
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83 72 pc 82 68 sh
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77 54 s
79 55 s
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65 45 s
62 44 pc
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67 40 pc 69 45 s
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96 73 s
96 65 pc
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Los Angeles
70 54 pc 70 54 pc
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86 69 s
86 68 pc
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THE WALL STREET JOURNAL.
A16 | Thursday, April 26, 2018
SPORTS
NCAA | By Jason Gay
They Fixed College Sports.
(Just Kidding!)
It’s not…nothing.
Look, it would be fun
to dump all over this,
the NCAA’s latest cleanup initiative—it’s always
fun to poke at the lumbering ol’ NCAA—but it wouldn’t be
completely fair. Wednesday’s proposal from Condoleezza Rice and
the recently formed Commission on
College Basketball contained more
than a few good, if wildly overdue,
recommendations.
Pushing the NBA to get rid of
“one-and-done”: great! (Though college players leaving after one season
is a function of the NBA’s 19-yearold age minimum, and changing the
policy is entirely up to the NBA and
its players association, so basically
this is like me proposing that pizza
should be free.) Allowing players to
retain agents and stay eligible: wise!
Widening latitude for undrafted
players to return to school: yes!
Pumping in more money so players
can complete degrees: fab! Attempting to tame the global shoe/apparel
companies that sink zillions into the
sport: Uh…good luck! But sure,
worth a try.
It’s not a radical set of diktats—
it’s not diktats at all, just suggestions that the NCAA has the option
to act upon—but let’s acknowledge
what it is: mild progress.
Now let me start whining.
First, it’s a letdown that the commission mostly tinkered under the
hood, instead of making an aggressive, foundation-rattling recommendation. It didn’t suggest, as some
hoped, that college basketball adopt
the Olympic model and let players
benefit from their names and images. There’s growing sentiment
that the NCAA should do as the
Olympics did, and offer college athletes—all of them, in every sport,
not just men’s basketball players—
Condoleezza Rice’s
commission offers some
wise words but doesn’t
go nearly far enough.
the opportunity to accept endorsements and capitalize on their image.
That move didn’t ruin the Olympics,
and it won’t ruin college sports.
Rice does seem OK with the
idea—she pinned the hold-up on
current litigation. “It is hard for
the public, and frankly, for me, to
understand what can be allowed
within the college model,” the former Secretary of State said in her
remarks at NCAA HQ in Indianapolis. “For the life of me, I don’t understand the difference between
Olympic payments and ‘Dancing
with the Stars.’”
Rice was referencing the NCAA’s
recent decision to allow the Notre
Dame women’s basketball star
Arike Ogunbowale to compete on
“Dancing with the Stars,” the
NCAA concluding that her dancing
is unrelated to her basketball
skills. This appears to be a shift
from the NCAA’s traditional policy
of having a complete cow over
even the vaguest whiff of athlete
entrepreneurialism, like when it
made a college football kicker
choose between the sport and
making money off YouTube videos
last year. (He chose YouTube.)
“Personally, I hope that there will
be more room in the college model
today for this kind of benefit to students without endangering the college model itself,” Rice said. “And let
me just say I hope that Arike wins.”
Rice and the commission are offering some common sense fixes.
My gripes are more holistic.
Change is being offered here—but
it isn’t drilling to the core of the
problem, which is…the NCAA itself.
Once again, the NCAA is being
portrayed as an agency under
siege by unsavory forces—crooked
agents, skeezy basketball camps,
giant multinational shoe companies. Once again, a college education is being presented as adequate compensation in a
multibillion-dollar economy in
which literally every involved
party (the NCAA, the schools, the
conferences, the coaches, the networks, agent, the sponsors) are allowed to monetarily benefit, except for one (the players.)
This imbalance—and its inherent lack of fairness—is what drives
the mess. It isn’t rogue agents or
wayward shoe peddlers, but the
NCAA’s insistence on amateurism
that pushes money underground
Increase Penalties,
End One-and-Done
INDIANAPOLIS—The NCAA commission on college basketball on
Wednesday recommended increased
penalties for rule-breakers and more
transparency from apparel companies. It also called for the NBA and
its players association to allow players to enter the draft out of high
school. The current rule requires
players to be 19 years old or a year
out of high school.
But the commission stopped
short of recommending the NCAA
find a way to allow its star attractions, the players, to share more of
the revenue they help create.
The recommendations, presented
by committee chair Condoleezza
Rice, the former Secretary of State,
will need to be adopted by NCAA
membership to take effect.
“It is time for coaches, athletic
directors, University Presidents,
Boards of Trustees, the NCAA leadership and staff, apparel companies,
agents, pre-collegiate coaches—and
yes, parents and athletes—to accept
their culpability in getting us to
where we are today,” Rice said in
prepared remarks.
The commission sprang from
what federal prosecutors alleged
last September was a scheme
among agents, financial advisers
and shoe-company executives to
bribe families of elite high school
players to sign with certain college
basketball programs. The allegations have implicated several top
programs and forced out Louisville’s
Hall of Fame coach, Rick Pitino.
Rice said the commission was
sending letters to the boards of directors of the major apparel companies, “calling on their boards to publicly support and implement
financial transparency and accountability for all of their employees—
and those who seek to act on behalf of the apparel companies in
non-scholastic basketball.”
The commission also recommended:
Condoleezza Rice
gative and adjudicative arms for
handling high-stakes rules-infractions cases. The appointed panel
would make binding decisions and
have authority to impose substantial punishments.
Increased penalties for top-level
violations of rules to allow five-year
postseason bans and loss of revenue sharing from postseason play,
and increased penalties for coaches
who repeatedly break rules.
The NCAA clarify its role in addressing academic fraud or misconduct by member institutions and
make application of those rules
consistent—a rebuke of the organization’s handling of allegations of
widespread academic fraud that
benefited athletes at North Carolina
but resulted in no major sanctions.
That the NCAA’s highest governance body, the board of governors,
include at least five independent
public members with voting rights.
The commission did not recommend significantly altering the
NCAA’s core principle of amateurism,
which limits college athletes mainly
to no more than tuition, room and
board. One possibility would have
been to allow athletes to profit directly from the use of their name,
image or likeness. Player endorsement deals with outside entities are
prohibited under current NCAA rules.
“There will be those that believe
that we should have come out and
said, ‘Well, the collegiate model is
dead given all the money in the
sport, so let’s pay players,’” Rice
said in an interview with The Wall
Street Journal. “This is a commission that has people who are in a
position in their life, a standing in
their life, if they wanted to say
that, they would have said it. But
that’s not what we believe.”
The NCAA makes most of its $1
billion in annual revenue from the
men’s basketball tournament.
—Rachel Bachman
That athletes be able to test
their professional prospects without
losing college eligibility if they don’t
sign a professional contract.
Appointment of an executive to
vet and register player agents.
Working with USA Basketball,
the NBA, National Basketball Players Association and others to establish and administer new youth
basketball programs.
Creation of independent investiand creates a Wild West that for
some reason the FBI thinks it
should be patrolling.
Sports economists have been
shouting it for ages: the corruption in high-revenue sports like
college basketball and football
isn’t a “scandal.” It is what happens when you shut down a valve
of a market economy.
That is what the details of these
federal cases have really shown:
College athletes have financial value
beyond scholarship offers, and if the
money can’t get there legitimately,
it will get there another way.
Which is why it’s hard to see
Wednesday’s proposal as the necessary shake-up. Pristine new summer
camps, stern words for the opaque
sneaker lords…it sounds good, but
doesn’t address the existential
problem. Neither do the harsh pen-
alties that Rice proposed—five year
postseason bans, lifetime bans for
crooked coaches, etc. Again, it’s a
nice line in a presentation, but
there’s a long track record of study
that severity of punishment isn’t a
terribly effective deterrent.
You know what works? Confronting reality. And fairness.
It would be great if someone
could get the NCAA to stop pushing
an antiquated rendering of itself,
and to accept the beast that it’s actually become. It would be nice to
have a conversation about athlete
compensation that doesn’t devolve
into some sort of “Reefer Madness”style paranoia about the end of collegiate athletics. Big money is here
to stay in college sports—and to
borrow a line from another movie,
this is the business the NCAA has
chosen. It’s time to treat it like one.
NBA PLAYOFFS
BY BEN COHEN
PHILADELPHIA—The first round
of the NBA playoffs usually doesn’t
matter.
It seems memorable as it’s happening, and then almost nobody actually remembers it. The first round
gets elbowed aside by the second
round, the conference finals, the Finals and free agency. The memes
endure longer than the games.
Except this year. Because the effects from the first round of this
year’s NBA playoffs are not limited
to this year.
The NBA has entered the type
of generational shift that has long
defined the league. LeBron James
belongs to one generation. Stephen
Curry, Kevin Durant, Russell Westbrook and James Harden belong to
the next generation. But the next,
next generation is the one making
its presence felt in the playoffs.
This generation consists of the
young stars who are known more
for what they could accomplish
than what they have accomplished.
These players who are oozing with
promise—Ben Simmons, Joel Em-
biid, Giannis Antetokounmpo, Donovan Mitchell and especially Anthony Davis—are going to inherit
control of the sport and define the
post-LeBron James era of the NBA
in the years to come.
But the scene here in Philadelphia on Tuesday night, as the Sixers polished off their 4-1 series
win over the Miami Heat to chants
of “Trust the Process!” echoing
across the arena, was only the latest sign this next, next generation
may not have to wait much longer.
The changing of the guard is
happening. The future of the NBA
is already here.
It’s time to acknowledge what
has become increasingly apparent: A
team that lost more than any team
only two years ago is now the team
to beat in the Eastern Conference.
Before their closeout Game 5, Sixers
center Joel Embiid went as far as
saying: “I think our time is now.” It’s
no longer only the delightfully brash
Embiid who believes that.
“I agree with Joel,” Sixers coach
Brett Brown said after the game.
“Our time might be now.”
Which might sound like a strange
thing to say after only the first
JASEN VINLOVE/REUTERS
THE CHANGING OF THE
GUARD IN THE NBA
Philadelphia 76ers center Joel Embiid goes in for a basket against the Heat.
round of the NBA playoffs about a
team that had 10 wins two seasons
ago and 28 wins last season. But
the Sixers have become so good so
quickly—they had 52 wins this season with the league’s best net rating since Feb. 6—that it’s easy to
forget they’re so young they’re still
getting better with every game.
Embiid is a 7-foot-something
force who somehow averages more
3-point attempts per game than
Reggie Miller did in the first two
seasons of his career, and Simmons
is a 6-foot-10 rookie point guard
who already plays with the internal
metronome of someone who doesn’t
have his sheer talent. The Sixers
played 1,305 minutes with Embiid
and Simmons on the court this season. They outscored their opponents by the largest margin of any
two-man lineup in the entire league.
If they stay healthy and continue
developing at this breakneck pace,
the league will belong to the Sixers.
Unless it belongs to the Boston
Celtics. The team the Sixers could
play in the next round—the Celtics
are clinging to a 3-2 lead over the
Milwaukee Bucks—is not the team
the Sixers could play in the next
few seasons. Jaylen Brown and Jayson Tatum, who are 41 years old
combined, have been revelations for
Boston this year, and they should
be playing alongside Kyrie Irving
and Gordon Hayward when they’re
back from injuries next year.
But it’s not only Philadelphia
and Boston that have found reasons in this first round of the playoffs to salivate about their places
in the league moving forward.
Giannis Antetokounmpo is a
foundational piece in Milwaukee.
Mitt Romney can get away with
taunting Russell Westbrook because of Utah rookie Donovan
Mitchell’s sensational play. Anthony Davis was unstoppable as
New Orleans rolled to a first-round
sweep and is enough to worry
even the Golden State Warriors.
Now look around the rest of the
league. The San Antonio Spurs are
gone. The Oklahoma City Thunder
are on the brink of elimination.
The Cleveland Cavaliers have
shown as much life in the playoffs
as a mannequin.
The clash between the past,
present and future of the league is
only going to continue in the next
three rounds, and it might only be
a tremor before what could be another seismic NBA off-season.
L-R: CHRIS CODUTO/GETTY IMAGES; DARRON CUMMINGS/ASSOCIATED PRESS
A commission on college basketball
issued recommendations to the
NCAA on Wednesday.
.
THE WALL STREET JOURNAL.
Thursday, April 26, 2018 | A17
OPINION
From Parkland to Waffle House
Society ‘dropped the
ball’ on Nikolas Cruz
and Travis Reinking.
A hero picked it up.
Over a long time, going
back decades, the opposite instinct became the norm in the
United States when confronted
with threats.
The threats could be large,
like school shootings and terrorism, or they could be small,
daily assaults on the most basic civilized orderings of everyday life. Such as 14-year-old
girls using four-letter words.
We used to push back instinctively. Then, we routinely
began to step aside.
The new instinct—don’t do
it—happened for all sorts of
reasons: You’ll get in trouble
with the lawyers. Somebody
else is supposed to take care
of these things. There must be
a better way to underlaughed at First Lady
stand this problem.
Nancy Reagan’s antidrug
Eventually, the simple
slogan, “Just say no.” She
answer of a James
was defending a broader
Shaw—“Do it now!”—just
social attitude. She lost.
died.
Similarly in schools,
That may be changing.
the opponents of pushThere is evidence that
back theory discovered a
people in positions of soremarkable weapon: the
cial authority are redisSupreme Court. Propocovering the value of
nents of standing aside
pushback.
turned decades of school
On the same day the
disciplinary tradition into
Waffle House shooting
constitutional
issues.
happened, The Wall After the shooting in Nashville, April 22.
They won.
Street Journal published
In a series of decia story with the headline like this—threatening class- sions, the justices made the
“Schools Take Zero-Tolerance mates or the entire school— disciplinary authority of prinApproach to Threats After and get off with what in our cipals legally complicated.
Parkland Shooting.”
times has become the one- Fearful of triggering expensive
It reported that school offi- size-fits-all excuse: “What’s litigation, school authorities
cials around the country “are your problem? I was kidding.” pulled back. The environment
warning parents and students
Amy Klinger of the Educa- for learning degraded and rein memos, community meet- tor’s School Safety Network mains so to this day in both
ings and school assemblies told the Journal, “There are good and poor public schools.
that language perceived as kids being arrested today that
The No. 1 reason inner-city
threatening, even done in jest, would have not gotten ar- parents give for trying to get
could land younger students in rested for the same thing in their children into charter or
juvenile detention centers and January. We have come to parochial schools is safety, to
older ones in jail with criminal some sort of place where peo- escape the chaos and danger
records.”
ple realize you can‘t say that of the public schools.
You read that right. Forget stuff.”
In 2007 the Supreme Court
the chat in the school counAfter decades of social may- recognized what had hapselor’s office. Your next talk hem, we have indeed come to pened, and ruled in the “Bong
will be with the folks at the some sort of place. Better late Hits 4 Jesus” case (Morse v.
precinct house. The squad car than never.
Frederick) that principals
is waiting at the schoolhouse
Pushback is a social virtue. could tell a student advocating
door.
Its utility is a society’s self- illegal drug use near the
A return to the 1940s? We preservation. Pushback from school to shut up. In his concould do worse. And you know people in positions of author- currence, Justice Stephen
that we have when the only ity—school principals, univer- Breyer wrote, “Students will
solution left is turning schools sity presidents, the cops, par- test the limits of acceptable
into armed sentry posts.
ents—has always been the behavior in myriad ways betA prosecutor in Macomb ballast against disorder in a ter known to schoolteachers
County, Mich., said: “If you free society.
than to judges.” So we learned.
threaten a school, you are goIf you stepped over a line—
The phrase used to explain
ing to be charged.” Beyond and a general consensus once killers Travis Reinking and
common sense, the reason is existed on where those lines Nikolas Cruz is that authoriastonishing: Since the Febru- were—a small personal price ties “dropped the ball.” This
ary Parkland shooting, 54 stu- was paid, if only in embarrass- week, James Shaw picked up
dents in Michigan have been ment for one’s parents. the ball inside a Waffle House.
charged for making threats (Please, no false analogies to It’s time for the people in
against schools.
Maoist social-media shaming.) charge of our institutions to
Up to now, apparently, you
That consensus fell apart. start doing the same thing.
could shoot your mouth off In the 1980s, sophisticates
Write henninger@wsj.com.
MARK HUMPHREY/ASSOCIATED PRESS
The death toll
at a Nashville
Waffle House
stopped
at
four because
James Shaw
pushed back.
WONDER
Mr. Shaw
LAND
ran
toward
By Daniel
shooter Travis
Henninger
Reinking out
of an instinct
for self-protection. “I acted in
a blink of a second,” he says.
“It was like: ‘Do it now. Go
now.’ I just took off.”
He says he’s no hero, but
men have been awarded the
Medal of Honor for acting on
the same blink-of-an-eye instinct. Mr. Shaw is not only a
hero, but an object lesson in
what America once took for
granted but no longer does.
Comey’s Loyalty Isn’t to the Truth
By Karl Rove
F
or 10 days, former FBI
Director James Comey
has been on a high-profile media tour to promote “A
Higher Loyalty.” With more
than 600,000 copies sold in
the first week, the book leaves
competing “resistance” favorites “What Happened” and
“Fire and Fury” in the dust.
But behind the aw-shucks, Iwas-the-only-honest-man-inthe-room
persona,
Mr.
Comey’s book demonstrates
his real higher loyalty is to
self-aggrandizement.
Consider two episodes from
George W. Bush’s presidency.
Mr. Comey writes that in 2003
he was drawn into the Valerie
Plame investigation when administration officials leaked
the identity of “a covert CIA
employee,” allegedly as retaliation for a critical op-ed written by Ms. Plame’s husband.
Mr. Comey, then deputy attorney general, appointed special
counsel Patrick Fitzgerald, and
writes that he stands by the
decision to charge Vice President Dick Cheney’s chief of
staff, I. Lewis “Scooter” Libby,
with false statements, perjury,
and obstruction of justice. Mr.
Libby was convicted in 2007.
But vital facts are missing
from Mr. Comey’s account. The
most important is that no one
revealed a covert CIA agent’s
name. Though Mr. Comey refers to Ms. Plame seven times
as a “covert agent,” she was
not. That’s why Deputy Secretary of State Richard Armit-
age, who revealed Ms. Plame’s
name to columnist Robert Novak, was never indicted.
Mr. Comey also fails to note
that the star witness against
Mr. Libby, former New York
Times reporter Judith Miller,
recanted her testimony in
2015. She said Mr. Fitzgerald
misled her and withheld exculpatory evidence that would
have kept her from “unwittingly giving false testimony.”
Vital facts are missing
from his accounts of
two episodes from
the Bush presidency.
In a rebuke to Messrs. Fitzgerald and Comey, the District of
Columbia Court of Appeals
cleared Mr. Libby to practice
law again in 2016, well before
President Trump pardoned
him earlier this month.
Then there is Mr. Comey’s
account of the March 2004
meeting of President Bush’s
Chief of Staff Andy Card and
White House Counsel Alberto
Gonzales with Attorney General John Ashcroft over reauthorization of a vital post-9/11
intelligence program codenamed Stellar Wind.
Here Mr. Comey summons
all the melodramatic flair he
can muster. In his telling, he
and other Justice Department
lawyers objected to renewing
Stellar Wind unless changes
were made. They had won Mr.
Ashcroft to their view, but he
was hospitalized with acute
pancreatitis—so ill that Mr.
Comey was made acting attorney general. As he was driven
home from work one night,
Mr. Comey received an urgent
message: Messrs. Card and
Gonzales were en route to Mr.
Ashcroft’s hospital room “to
do an end run” around Mr.
Comey. Flashing lights blazing,
his SUV moving as if on “a
NASCAR track,” Mr. Comey
raced to the hospital. His “vehicle screeched to a stop.” He
“jumped out and ran up the
stairs . . . relieved” to arrive
ahead of both Mr. Card and
Mr. Gonzales. He took a seat in
the darkened room “just to the
right of Ashcroft’s bed” and
waited for the president’s
agents to arrive.
When they did, Messrs.
Card and Gonzales were
shocked to find the attorney
general so ill. Mr. Gonzales explained they’d come seeking
Stellar Wind’s reauthorization
and, Mr. Comey reports, “willing to work to fix any legal issues.” Mr. Ashcroft momentarily recovered, delivered “a
rapid-fire blast,” claiming he
“had been misled” about Stellar Wind’s scope and had “serious concerns about the legal
basis for parts” of it. The two
White House officials beat a
hasty retreat. (The program
was soon reauthorized with
agreed upon changes.) “I felt
like crying,” Mr. Comey reports. “The law had held.”
Such high drama! But again,
Mr. Comey leaves out critical
facts. When Messrs. Card and
Gonzales arrived at the hospital, neither they nor the president knew that the attorney
general’s authority had rested
with Mr. Comey for nearly a
week. Justice Department staff
later claimed they faxed the
White House the news, though
you’d think if an attorney general couldn’t perform his duties, his designated successor
would personally alert the
president or his aides. White
House officials don’t even recall Mr. Comey’s presence at
Mr. Ashcroft’s bedside. He
might have been seated in a
dark corner or hiding behind a
room divider, but he was a silent observer at best.
Mr. Comey approached Stellar Wind, like many other issues, by assuming not honest
differences but venal motives
on the part of those with
whom he disagreed. This tendency left him inclined to histrionics, such as allegedly telling his security detail “not to
permit me to be taken from
Ashcroft’s room” if Mr. Card
ordered Secret Service to remove him.
“A Higher Loyalty” leaves
the impression no one has a
higher opinion of James
Comey than himself. How difficult to be a white knight in a
fallen world!
Mr. Rove helped organize
the political-action committee
American Crossroads and is
the author of “The Triumph of
William McKinley” (Simon &
Schuster, 2015).
Millennials Hit the Great Books
By Robert Bellafiore Jr.
‘T
Norman, Okla.
his is the hardest
class you will ever
take,” one of my University of Oklahoma professors warned. I eagerly enrolled in the course, “Fate and
the Individual in European Literature.” Taught by three professors using a syllabus developed by the poet W.H. Auden,
it promised to cover, over two
semesters and 6,000 pages, 34
of the greatest works in the
canon, from Homer to Derek
Walcott.
The Auden course, as we
call it, was even more exciting
and illuminating than I had
expected. A lecture on “Beowulf” began with classicist
Kyle Harper’s stirring recitation of the poem’s opening
words in the original Old Eng-
lish. To help the class appreciate Mozart’s “Don Giovanni,”
historian Wilfred McClay
brought in his keyboard for a
performance. English professor David Anderson often began lectures by reading a
poem by Auden or T.S. Elliot.
‘The hardest course
you will ever take’ and
the most rewarding.
The best moment of the
course was more somber. On
the final day of the first semester, Mr. Harper read an excerpt from Auden’s “New Year
Letter,” published in 1941. A
strange, abstruse, and beautiful poem, it is about how to
live amid the horrors of World
War II. Mr. Harper made of it
a guide to living virtuously in
today’s world of immense anxiety and profound loneliness.
The Auden course has offered us something hard to
find in the academy today:
wisdom. So many humanities
departments focus on grievance rather than guiding students toward a meaningful
life. That a group of students
at a public university would
voluntarily submit themselves
to Goethe, Melville and Dante
surely suggests that young
people crave meaning. These
works provide it.
The success of the Auden
course also suggests something else: that dwindling
reading lists, shrinking attention spans and falling expectations at universities around
the country aren’t inevitable.
Our professors respect us
enough to demand enormous
effort and insist that we are
capable of rising to excellence.
Rather than scaring students
away, the challenge of making
our way through 6,000 pages
has shown many of us that we
are capable of more than
other professors would acknowledge.
Give students heights to aspire to, and we will reach
them—just as surely as we
will settle for mediocrity if
that is all you ask of us. Too
many students are seeking
clarity and purpose and finding only cacophony and aimlessness. The Western canon
offers the challenge of a lifetime, and it’s one I believe my
generation is willing to accept.
Mr. Bellafiore studies economics and philosophy at the
University of Oklahoma and
will graduate in May.
BOOKSHELF | BY Richard Adams Carey
Sea-to-Table
Stewardship
Fishing Lessons
By Kevin M. Bailey
(Chicago, 246 pages, $24)
T
he Coast Salish people of the Pacific Northwest had a
good thing going, back when the world was young and
salmon ran up the streams of that region in abundance.
Thanks to the salmon—writes Kevin M. Bailey in “Fishing
Lessons: Artisanal Fisheries and the Future of Our Oceans”—
the Salish “didn’t have to spend all winter foraging for food,
and they could spend time on their art and culture.”
But then, in 1778, Capt. James Cook anchored offshore,
traded for sea otter pelts that would be sold for great profit
in China, and . . . well, you know how it played out. First the
otters, then the Salish, then the salmon were devastated in
that familiar cycle of exploitation, colonialism, dispossession,
economic development, crowding and industrial waste.
These events were all opportunistic commercial transactions carried out with little regard for their human and
environmental consequences. To Rachel Carson—in a passage
from “Silent Spring” used as an epigraph by Mr. Bailey—they
represented the road more traveled by, “a smooth superhighway on which we progress with great speed, but at
[whose] end lies disaster. The other fork of the road—the one
‘less traveled by’—offers our
last, our only chance to reach a
destination that assures the
preservation of our earth.”
Mr. Bailey’s book is a direction signal to the less-traveled
road. To the Salish, the author
writes, the salmon were a public
resource and a sacred trust; to
those who displaced them the fish
were, like the otters, a commodity.
And once a fish is sold for profit,
the momentum created by the transaction continues. And this momentum—fueled by rising populations,
expanding markets and industrial fishing techniques—leads us promptly to that place along the ocean
highway where the nets start coming up empty.
Governments and fisheries agencies have jabbed on the
brakes over recent decades with measures like limited fishing permits, gear restrictions and closed seasons. But increasingly management’s instrument of choice has become
the Individual Transferable Quota (ITQ). This is a fixed percentage of the allowable catch of a certain stock allotted to
some private entity—an individual fisherman or vessel, for
example, or a cooperative or corporation.
Since an ITQ is as transferable as an otter pelt—it can be
handed down, traded, leased or sold—it acquires a
momentum of its own on the open market. Hard-pressed
small-boat fishermen have trouble competing against the
efficiencies of larger vessels—especially since the ITQ system
robs small fishermen of their freedom to move among
different species during the course of a year. As they quit, or
age out with their children looking for different ways of work,
their ITQs tend to accrue to those larger vessels—and especially to the corporations that support fleets of such vessels.
This process of privatization and consolidation not only
entails a wholesale loss of jobs and infrastructure along the
waterfronts of coastal communities, it invests power in
entities that have the political muscle to evade or shape
regulations to their convenience. Dockside shanty workers get
replaced by lobbyists who too often have no interest in the
long-term health of fisheries or fishing communities.
Small-scale artisanal fisheries, dominated by
small owner-operated boats, promote marine
conservation and strengthen local economies.
Mr. Bailey notes that four corporations owned by seven
families control from 50% to 92% of Chile’s overall harvest,
depending on who’s counting. Most of that harvest is exported
in the form of fishmeal to support such other ventures as
mining. “In 2016, Chile’s government announced in its annual
report on the status of fisheries that a devastating 72 percent
were in an overexploited or depleted state,” Mr. Bailey writes.
“This number is up from 48 percent three years before.”
Chile provides an egregious example, but ITQ-fueled
consolidation is occurring in fisheries everywhere, and the
strategy is underperforming as a conservation measure, as
are other forms of top-down fisheries management. Better
ideas, Mr. Bailey argues, are to be found among the various
small-scale artisanal fisheries, scattered about the world, that
he visits throughout this fascinating and far-ranging book.
By “artisanal” the author means fisheries dominated by
small owner- or family-operated boats “practicing respect and
passion for the craft of fishing.” These include the revived
salmon fisheries of the Pacific Northwest, now co-managed by
the region’s indigenous tribes, including those of the Coast
Salish, since a landmark court ruling in 1974.
But nowhere is it easy. In Puget Sound, gillnetter Pete
Knutson competes against 70-foot purse seiners that are
usually corporate-owned. He stays in the game not only by
catching salmon but also by processing, selling and shipping it.
In Nova Scotia’s Bay of Fundy, weir fisherman Darren Porter
ices and sells the flounder, shad, herring and alewife he traps
but is forbidden by law to process any of it. He is also forbidden to keep the salmon, bass and sturgeon his traps collect.
For him, every tide is either “Christmas—or a slap in the face.”
This kind of sea-to-table, eliminate-the-middleman process,
while logistically difficult, is typical of the fisheries Mr. Bailey
celebrates. They strike some sort of accommodation with the
catch-share paradigm—as does California’s Monterey Bay
Fisheries Trust, for example, which acquires and manages ITQ
shares for the benefit of local small-boat skippers. Then they
find ways to incentivize practices, marketing strategies and
management techniques that foster not big profits but plenty
in the way of stock sustainability, local employment and
infrastructure, and modest but rewarding livelihoods.
“Fishing Lessons” fails to close the circle as to how such
artisanal fisheries might satisfy global demand for a world
population expected to exceed nine billion by 2050. Mr. Bailey
visits promising aquaculture projects in Monterey Bay
(abalone) and Peru (arapaima), but the environmental risks of
aquaculture increase exponentially as such operations scale up.
But first things first: Fishing will never again allow us to
take the winter off to paint our masterpieces. If we expect the
sea still to feed us, our fisheries must once again become
public resources not private bailiwicks, their management governed more by the spirit of stewardship than by big business.
Mr. Carey’s books include “Against the Tide: The Fate of
the New England Fisherman” and “The Philosopher Fish:
Sturgeon, Caviar, and the Geography of Desire.”
.
A18 | Thursday, April 26, 2018
* *
THE WALL STREET JOURNAL.
OPINION
T
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
The Regressive State of America
Justinian Didn’t Have to Deal With Congress
he 50 American states have long com- second worst in the country after Alaska.
peted for people and business, and the
Lest you think this was a one-year anomaly,
2017 tax reform raises the stakes by lim- we looked at the personal income figures for
iting the state and local tax
every year since 2011. That’s
Federal income data
deduction on federal returns.
the year Mr. Malloy took ofThe results of bad policy will
and the state rebounded
offer a tragic lesson in fice,
be harder to disguise.
well from the recession with
A case in point is Connecti- bad policy: Connecticut. 4.9% income growth, the best
cut’s continuing economic dein New England.
cline, and now we have even
It has been downhill from
more statistical evidence as a warning to other there. In personal income growth, Connecticut
states. The federal Bureau of Economic Analysis was 49th out of 50 states in 2012, 37th in 2013,
recently rolled out its annual report on personal 39th in 2014 and 2015, and 33rd in 2016. The conincome growth in the 50 states, and for 2017 the sistently poor performance, especially relative to
Nutmeg State came in a miserable 44th.
its regional neighbors, suggests that the causes
The progressive paragon’s performance is are bad economic policies, not the business cycle
even worse when you look at the details. The or a downturn in a specific industry.
nearby chart shows that the state’s personal inIn Mr. Malloy’s case this has included tax income grew at the slowest pace among all New creases starting in 2011 and continuing year afEngland states, and not by a little. Governor ter year on individuals and corporations that
Dannel Malloy’s eight-year experiment in pub- eventually drove GE to move its headquarters
lic-union governance
to Massachusetts. Unsaw income grow by a
funded pension liabilimeager 1.5% for the
ties continue to grow
year, well below Ver- Percent change in personal income in New England
in Hartford without remont (2.1%). The state states and the U.S. in 2017
form, in contrast to
even trailed Maine
Rhode Island, where
(2.7%) and Rhode IsDemocratic Gov. Gina
1.5%
land (2.4%), which are
Raimondo has put pubusually the New Englic pensions on a more
2.7
land laggards.
stable footing.
3.3
The only states to
The personal indo worse than Concome
figure isn’t a
3.5
necticut were Alaska
macroeconomic ab2.4
(0.4%), which is heavstraction. It is the meaily dependent on oil
sure of rising or falling
2.1
and gas production,
living
standards—
2.7
and Kansas (1%), Newhether someone can
braska (1.4%), Iowa
afford a new car, or a
3.1
(0.3%) and North
family vacation, or
(-0.3%) and South Dasend the kids to sumkota (1.4%), all farm
mer camp.
states that struggled
The fact that Conwith low commodity prices. National income necticut, which is next to America’s financial
growth was 3.1%.
capital, has grown so poorly amid an expanThe data are even more depressing if you sion that was especially good for financial asstrip out dividends and government transfer sets is a damning indictment of its political
payments and consider only wages and salaries. leadership. It is a particular tragedy for the
Connecticut had essentially no growth (0.1%), state’s poorest citizens who may not be able
which was worse than every state save Alaska to flee to other states that aren’t run by and
(-1.6%). The figure for the U.S. was 3.3%. Total for government employees. Maybe we should
nonfarm earnings in Connecticut were also the call it the Regressive State.
C
Pentagon Spending Sanity
ongress recently increased military Agency’s functions would be folded into milispending, but if the Pentagon wants tary cyber capabilities. The Pentagon would
this to be more than a one-time boost be free to plow any savings from these reit needs to show it can get
forms into war fighting capaSome good ideas
more bang for the buck. The
bilities, which is an incentive
House is considering several
to save.
to kill redundant
proposals that would help,
Democrats are objecting
defense programs.
and Democrats ought to supbecause the bill would reduce
port the effort.
the number of federal employArmed Services Chairman
ees, though they typically
Mac Thornberry recently rolled out a bill to complain that the Pentagon wastes money.
streamline the 28 independent agencies that Would they prefer if all Pentagon employees
are part of the military-bureaucratic complex. were civilians? Contractors are leaking concerns
This back-office support army is often called about $7 billion in potential lost business, but
the “fourth estate” and costs more than $100 then they should make the case for how their
billion a year, or nearly 20% of the defense bud- contracts serve actual military defense.
get, with some 200,000 civilian employees and
None of this is a panacea, and the bill doesn’t
600,000 contractors. Spending since the Rea- overhaul the Defense Health Agency that is a
gan buildup has fallen about 16% for the Navy big line item. Former Senator Tom Coburn in
and 21% for the Air Force in constant dollars. 2012 produced a memorable “Department of
But the fourth-estate budget has exploded by Everything” report about Pentagon waste. For
242%. Growth in the civilian workforce has out- instance: Why does it still run grocery stores
stripped that of war fighters.
(commissaries) on bases?
The House bill would eliminate seven agenPentagon leaders have typically resisted recies by 2021 and ask others to find savings of form, and the military protects its iron rice
25%. One deserving target for elimination is the bowl like any government agency. But a ReaOffice of Economic Adjustment, which exists to gan-size defense buildup isn’t coming; the
subsidize areas affected by base closures. This military competes with entitlements that suck
is a matter for private development, not bu- up ever-more of the federal budget. The only
reaucratic planning.
way for the Pentagon to continue to protect
Another target is the Defense Human Re- the nation is if it becomes as ruthless in fightsources Activity, which adds bureaucracy to ing waste and mismanagement as it is other
hiring. The Defense Information Systems adversaries.
O
Operation Muppet Freedom
ne place you might not expect to find can queue up shows any time.
the federal government is Saturday
FCC Commissioner Michael O’Rielly has
morning cartoons. Yet the Federal taken on the worthy project of revisiting the
Communications Commission
rules. Mr. O’Rielly said in a
The TV habits of
has for years regulated chilrecent speech that the
dren’s programming, and it
share of children
children have changed. broadcast
will soon revisit these superaudiences ages 2 to 11 has
Regulators haven’t.
annuated rules, which is a vicplummeted 99%. He’s also
tory for what one might call
right that the rules seem to
Muppet innovation.
have carried some uninThe 1990 Children’s Television Act required tended consequences.
broadcasters to include children’s education
For instance, Mr. O’Rielly has explained that
and information as part of programming, and the 30-minute requirement has reduced air
over time the FCC developed conditions. Three time for shorter content or afternoon specials
hours of programming on average must air be- that are better suited to a child’s attention
tween 7 a.m. and 10 p.m. and last at least 30 span or interests but don’t satisfy regulators.
minutes each. The shows must appear on a reg- Not every plot device on Dora the Explorer reular weekly schedule, lest there be mutiny from quires the full half-hour treatment.
six-year-olds.
If the rules are amusing, some of the compliThere are restrictions on what can pre-empt ance costs are not. Mr. O’Rielly noted in Januthe programs, and so live sports or maybe even ary that one group that owns 15 television stathat great car chase may have to wait until Os- tions filed 473 pages of reporting to the FCC
car the Grouch is done imparting a lesson about in the first quarter of 2017. One ostensible purrecycling. The hammer is that the commission pose is to list everything the broadcaster aired
can hold up a license renewal if these diktats in the past quarter, which is a waste of time
aren’t followed, complete with extensive re- even for government workers to review.
porting requirements.
The FCC is expected to revisit the rules in
This is a classic anachronism. Children like the coming months, and the right answer is to
adults are much less likely to rely on network eliminate the requirements. Networks are not
television than they were 30 years ago. There’s going to stop showing content that children
Paw Patrol on cable, Puffin Rock on Netflix or want to watch, but they would be free to tailor
even Sesame Street on HBO. YouTube offers offerings. Parents are better regulators of what
hours of free children’s content, and parents their children watch than are the feds.
F.H. Buckley’s proposal for wholesale regulatory reform is sensible and
long overdue, except for his call to replace detailed rules with commonsense standards (“The ‘Swamp’ Needs
a Justinian,” op-ed, April 20). As Justice Neil Gorsuch emphasized recently,
the law can demand compliance only
with laws that provide enough detail
to give the person fair notice of what
is on what side of the line; those laws
must be enforced as written, not as
one wishes they had been written or
as someone in Congress thought they
were written when the yeas and nays
were cast. In the rare cases where
standards rather than detailed rules
apply, the relevant standards—like
“reasonable person” in many contexts
or “materiality” in securities law or
the various levels of “negligence”—
work fairly only because they have decades or centuries of baggage that inform their meaning to which affected
persons can turn. I would not want to
live under a regime where the amount
of tax that I owe is the amount that
the IRS says is my “fair share.”
ROBERT KANTOWITZ
Lawrence, N.Y.
judges to give controlling weight to
the opinion of a claimant’s treating
doctor, if that opinion was found to be
backed by substantial evidence.
I worked for 20 years as an attorney and disability advocate in this
field. The effect of tedious new rules
of evidence, the aforementioned abolition of the treating physician rule, the
disregard for the credibility of the
hardworking wage-earners who pay
for this program, their doctors and
the opinions of other government
agencies (such as Veterans Affairs) is
astounding.
JACQUES M. FARHI
Bronx, N.Y.
Prof. Buckley is rightly frustrated,
as are many of us, by the arcane process currently required to undo a federal regulation. I am not convinced,
however, that adding another layer of
bureaucracy is the solution. Why not
simply amend the Administrative Procedure Act to allow the executive department to repeal regulations with
the proverbial “stroke of a pen”? If
Congress disapproves of such an action, it can overrule it by statute. (If
Congress can’t muster the requisite
Since 2010 over 1,000 regulations
majority, what does that say about
have been added to the Social Secuthe recently rescinded regulation?)
rity Disability program adjudication
It might be difficult to get the
process. Most appalling is the elimina- above proposal through Congress, but
tion in 2016 of the treating physician
no more so than Prof. Buckley’s.
rule which required the Social SecuGEOFFREY C. PRICE
Austin, Texas
rity Administration and its 1,600 law
Growth: The Only Way Out of U.S. Debt Hole
Regarding William A. Galston’s
“The National Debt Is Worse Than
You Think” (Politics & Ideas, April
18): Our economy will benefit by expanding the legal immigration of
skilled trade workers and technology
workers to alleviate labor shortages
in construction and innovative technologies that provide steady growth.
Our low population-growth rate,
similar to other advanced economies, won’t be adequate to fill the
gap in demand. Demand for skilled
workers among all advanced economies is bound to increase to meet
economic growth rates that support
public services.
Both parties must recognize their
primary responsibility to maintain
economic growth that promotes genuine fiscal improvement. Distracting
voters with divisive social issues isn’t
going to solve economic problems.
ROHIT DESAI
Princeton Junction, N.J.
Mr. Galston states: “Absent big
changes in the labor force, advocates
of 3% growth are left hoping for a
productivity miracle.” My comment
is: A miracle isn’t necessary. All that
is needed is a change in the Congressional Budget Office’s assumption
about the makeup of the U.S. labor
force. For example, today’s U.S. labor
force has to be more knowledge and
technology based then previously.
This means that the U.S. workforce
can remain on the job doing useful
work well past the current typical retirement-benefit age of 65. That fact,
enhanced as necessary with techsavvy immigrants, can dramatically
change the CBO’s estimate about the
growth of our labor force.
Accordingly, its estimate of economic growth could easily be much
higher. It would be interesting to see
a parametric CBO estimate depicting
the effect of average retirement age
being, let’s say, 67, 70, etc., and the
corresponding number of younger
tech-savvy immigrants needed for
U.S. economic growth to reach the
administration’s target of 3% a year.
The CBO might have performed such
analyses to estimate what is needed
to reach the administration’s goal.
ELLERY BLOCK
Westerville, Ohio
Chennault Helped to Lengthen Vietnam War
James Nichter’s “A Vietnam Myth
That Refuses to Die” (op-ed, April 20)
based largely on an interview with
Anna Chennault, absolves Chennault,
leading female fundraiser of the 1968
Nixon presidential campaign, of her
role in sabotaging Vietnam peace
talks to help Nixon’s election. It is untrue in all respects. As Vice President
Hubert Humphrey’s assistant, I had
direct knowledge of the matter.
The Johnson White House learned
through intelligence intercepts of
Chennault’s discussions on Nixon’s
behalf with the South Vietnamese
ambassador. She urged the South
Vietnamese to boycott peace negotiations with North Vietnam. Nixon, she
said, would continue to support the
South Vietnamese war effort
whereas Humphrey had pledged to
end the war in 1969. President Lyndon Johnson met with his nationalsecurity team and chose not to publicly disclose the Nixon-Chennault
initiative. On Humphrey’s behalf I
then asked James Rowe, a law part-
Better Design Would Help
Proper Use of Oxygen Masks
The improper use of oxygen masks
should come as no surprise (“Many
Fliers on Plane Failed Air-Mask Test,”
U.S. News, April 20). It’s unrealistic
to expect passengers in an emergency
to remember safety instructions from
a video or demonstration, no matter
how entertaining or how often repeated. The solution isn’t better instruction, but better design. Masks
should be designed so the natural use
is the right use; they should fit more
easily over the nose and mouth than
over the mouth alone, feature a
prominent “adults first” sign and
have an outer layer that’s reassuringly full of air. Don’t blame users for
bad design.
ROB COOK
San Anselmo, Calif.
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.
ner of Chennault attorney Tommy
Corcoran, to tell Corcoran and the
South Vietnamese ambassador that
we knew of the Nixon initiative and
to urge South Vietnam to come to
the conference table.
Two days before the election the
South Vietnamese responded with an
unequivocal no. Humphrey was furious. He stated he would enter negotiations with North Vietnam without
the South Vietnamese. We didn’t
publicly disclose the Nixon-Chennault intervention because we
couldn’t reveal we knew of it from
intercepts, and we anticipated that
Nixon would simply brand it an election-eve campaign ploy.
Nixon did sidetrack peace negotiations immediately after his inauguration. More Americans died in Vietnam during the Nixon presidency
than during the Kennedy and Johnson presidencies combined.
TED VAN DYK
Bellingham, Wash.
Corps and Corpses In Texas
Regarding Adam J. White’s review
of Adam Winkler’s “We The Corporations” (Bookshelf, April 9): As Robert
Reich once put it: “I’ll believe corporations are people when Texas executes one.”
BOB RABER
New York
Pepper ...
And Salt
THE WALL STREET JOURNAL
“We don’t do hugs.”
.
THE WALL STREET JOURNAL.
Thursday, April 26, 2018 | A19
* *
OPINION
Climate Activists Are Lousy Salesmen
P
oliticians, bureaucrats, activists, scientists and the
media have warned Americans for decades that the
Earth is headed toward climate catastrophe. Yet surveys consistently show that less than half of U.S.
adults are “deeply concerned” or
“very worried” about climate issues.
If, as Leonardo DiCaprio insists, climate change is the “most urgent
threat facing our entire species,” why
do a large percentage of Americans
not share his fear? Climate crusaders
tend to lay fault with nonbelievers’
intransigence. But this is its own
form of denial and masks the real
reason: poor salesmanship.
From turgid battle cries
to hypocritical spokesmen,
it’s no wonder they turn
so many Americans off.
The promotional efforts of the climate catastrophists have lacked clarity, credibility, and empathy. These
are the cornerstones of effective
persuasion. Successful advocacy
campaigns use lucid names to frame
and sell their issues—“living wage,”
“welfare queen” or “death tax.” Climate can be confounding; it is longterm weather, but environmentalists
chide anyone who dares call it that.
Since Earth’s climate is always fluctuating, the word “change” muddles
it with redundancy. Swapping between “climate change” and “global
warming” confuses the public.
A good battle cry can rally the
troops, but the Paris Agreement’s
aim is “to strengthen the
global response to the threat
of climate change by keeping
a global temperature rise this
century well below 2 degrees
Celsius above pre-industrial
levels and to pursue efforts
to limit the temperature increase even further to 1.5 degrees Celsius.” That is a far
cry from “Remember the
Alamo!” And Americans are
always turned off by the use
of metric units. In the U.S.,
Toyota wisely markets the
2018 Prius’s fuel economy as
52 miles a gallon, not 22 kilometers a liter.
American TV audiences
bought Carl Sagan’s explanations of how the universe
works because of his obvious
scientific expertise. Bold statements about complex systems
are always more plausible
when they are made by people
with impeccable credentials. As a Harvard sophomore, Al Gore received a D
in a natural sciences course. Mr. DiCaprio dropped out of high school in
11th grade.
The rank hypocrisy of many of the
environmental movement’s superstars also alienates potential followers. Messrs. Gore and DiCaprio lead
lavish, jet-setting lives. It is hard to
heed Tom Steyer’s demand to ban
offshore oil and gas drilling when
Farallon, his hedge fund, invested
hundreds of millions of dollars in
coal mining. Climate change activists
tend to be aggressive advocates, but
over-the-top selling doesn’t sway
people who are undecided. This is as
true for political surrogates attributing society’s ills to the other party’s
candidate as it is for green activists
linking all manner of extreme
PHIL FOSTER
By Stewart Easterby
weather to climate change.
Scientific impropriety has triggered a popular backlash against the
climate change activists. The hockey
stick chart, Climategate and questions about the integrity of National
Oceanic and Atmospheric Administration climate data have all fueled
public suspicion. Only 39% of Americans believe climate scientists can
be trusted a lot to give full and accurate information on causes of climate change according to Pew.
Failed forecasts diminish believability. A Wall Street firm with multiple wrong market calls would lose
clients. The actual rate of warming
has come in below what climate
models projected, casting doubt on
future calculations. Likewise, claims
that anyone can precisely estimate
what global average temperatures
will be decades from now don’t pass
muster with the average person.
There are currently no betting odds
for Super Bowl CX in 2076 or S&P
500 futures with December 2099 expiration dates.
The burden of proof in the climate debate lies with those claiming
rising temperatures stem primarily
from human activity and not other
factors. While the prosecution may
feel it has a winning case, the jury’s
verdict is what counts. Labeling dissenting jurors “deniers”—an insidious association with Holocaust denial—is a losing courtroom strategy.
Most people are naturally disinclined
to obsess daily about a phenomenon
that started long before they were
born and won’t reach fruition until
long after they die.
It’s true that almost all climate
scientists believe humancaused global warming is
real. Similarly, American
adults understand that expert opinions can change or
turn out to be spectacularly
wrong. Think of the recently
overturned consensus on the
link between egg consumption and coronary heart disease, or the reports during
the 1970s that a new ice age
was imminent. Against this
backdrop, calling skeptics
“anti-science” is counterproductive, especially since
skepticism is the essence of
the scientific method.
From 2006 to 2016, China
increased its annual carbon
dioxide emissions 37% while
America’s yearly output decreased far more than any
other country. In the Paris
Agreement, China pledged to
begin reducing emissions
around 2030, meaning it can spew
even more greenhouse gas for years
to come. The U.S. vowed to reduce
its 2025 emissions by 28% from
2005 levels. Yet questioning if the
accord is fair to America or will
forestall global warming is reliably
met with sanctimonious scorn.
My advice to the activists is this:
you will attract more supporters to
your cause if you can pick a name
and stick with it, create a clear call
to action, enlist a convincing spokesman with a small carbon footprint,
tone down the alarmism, and fix the
computer models. Most important,
listen to the doubters, don’t lambaste them.
Mr. Easterby has worked as a
sales executive for three publicly
traded technology companies.
Trump’s Travel Ban Traps U.S. Citizens
By Steve Inskeep
T
he war in Yemen is testing
one of President Trump’s
stated principles. It’s no surprise that the U.S. is admitting
hardly any refugees from that
Arab state. Yet on a reporting trip
to Yemen and nearby countries,
my colleagues and I discovered
something startling: American citizens are among the Yemenis who
have tried and failed to reach
safety in the U.S.
Children of Yemeni-American
families are effectively trapped
outside America. These are typically small children with U.S. passports, whose mothers are not citizens.
The
mothers
haven’t
Young children of YemeniAmerican men are stuck
in Djibouti because their
mothers can’t get visas.
received visas, often because of
President Trump’s restriction on
travel from several countries, including Yemen. (The Supreme
Court heard oral arguments
Wednesday in a case challenging
the ban.)
My colleagues and I identified a
dozen families that included U.S.
citizens. They were stranded in
Djibouti, an East African country
across the Gulf of Aden from Yemen. One mother, Saba Hamza,
welcomed us into her temporary
home in the ramshackle capital
city of the former French colony.
Sitting on the floor in her windowless apartment, she opened a
manila envelope. She removed a
blue U.S. passport, which belongs
to her 3-year-old son, Suleiman.
He climbed on her lap and played
with the passport as we talked.
Suleiman’s father, Mohamed
Hamza, lives in the Bronx. “I wish
I could be with him,” Mrs. Hamza
said. Her husband has worked in
the U.S. for some 20 years, first in
a Michigan auto plant and more
recently in a New York cellphone
storefront. Like many immigrants,
he left his family in the old country, sending money and visiting
when he could. He naturalized, so
that the couple’s children are U.S.
citizens by birth. When the war
forced the family to flee to Djibouti, Mr. Hamza flew out to affirm Suleiman’s citizenship and
bring his family back to New York.
But Mrs. Hamza is not a citizen.
After months of waiting, she told
me, she had yet to receive a visa.
The family concluded they could
not separate a 3-year-old from his
mother. Both are stuck in Djibouti.
As Mrs. Hamza and I talked,
more people emerged from other
apartments. Amr Mozeb was a U.S.
citizen who grew up in Michigan
and now lives in New York. He had
come to Djibouti to recover his
wife and two small children. The
children are citizens—I saw the
passports—but his wife had been
refused a visa. Mr. Mozeb showed
me a document citing Presidential
Proclamation 9645, the current
version of the travel ban.
“I can’t take any more loans,”
Mr. Mozeb said. “I have to do
something, so now I’m going back
to the U.S.” He planned to return
to New York alone and wasn’t sure
where his wife and children would
go. Djibouti is expensive. Mozeb
said a U.S. consular officer recommended settling in Somaliland,
where the cost of living is lower.
These refugees are only a few
among millions in this age of migrants. Yet they should be peculiarly meaningful to President
Trump. When defending his travel
ban and other immigration policies, the president’s supporters offer a rationale: He is simply giving
priority to American citizens.
“The distinction of citizenship
means something,” then-National
Security Council spokesman Michael Anton told me in 2017. “And
citizens are in it together fundamentally in a way that the world
community is not.” So why do
these citizens languish outside
their country?
Some form of this problem
might have emerged in any administration. Diplomats offer reasons
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why mixed families might struggle
to gain visas. Consular officers
worry about fraud schemes, in
which unrelated people claim ties
to citizens. Documents can be hard
to check in a war zone. And because Yemen is a base for al
Qaeda, the U.S. is on guard against
terrorism.
Yet State Department mechanisms exist to admit families who
have been properly vetted—vetting
that can include DNA tests. Even
the president’s travel ban need not
stand in the way. The State Department says the administration
has granted 490 waivers to the
ban around the world since it went
into effect in December. But not
for the families we met in Djibouti.
The president who vowed to put
American citizens first has the
power to back up his words. If he
believes all citizens are equal, he
has all the reason he needs to order compassionate consideration
of Yemeni refugee families. He can
bring these American citizens
home.
Mr. Inskeep is host of NPR’s
“Morning Edition.”
.
THE WALL STREET JOURNAL.
A20 | Thursday, April 26, 2018
MULTIPLIERS OF
PROSPERITY
Creating
Opportunities
For countless low-income Americans and people around the
world, the path to success takes many turns. Finding the right
advisors to start that small business or student loans that don’t
hinder the graduate are the signposts on the road to prosperity.
From the Bronx to Bangladesh, MetLife Foundation and its
partners are working to improve the financial lives of low-income
people — and help them manage their day-to-day needs,
navigate life’s inevitable challenges and plan for the future.
Hear their stories at
multipliersofprosperity.com
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The Wall Street Journal news organization was not involved in the creation of this content.
.
TECHNOLOGY: TWITTER DELIVERS SECOND QUARTER OF GAINS B4
BUSINESS & FINANCE
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THE WALL STREET JOURNAL.
* * * **
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Thursday, April 26, 2018 | B1
LIBOR 3M 2.366
NIKKEI (Midday) 22346.24 À 0.59%
Wall Street Reaps What Fear Sows
BY TELIS DEMOS
A
surge
on
Wall
Street stock-trading desks is
being driven by manic investor moves in derivatives, as
fund managers scramble to
protect their gains from future
volatility.
Following a leap in stockmarket volatility this year, the
biggest U.S. banks generated
more revenue from stock trading than in any first quarter
since the financial crisis, according to a Wall Street Journal analysis of bank regulatory
filings.
It has been a long time
coming. The business of trading is still far from its precrisis peak, when fewer trades
were done electronically and
overall fees charged by banks
were higher. Now, more trades
are done automatically, leaving razor-thin margins for
traders. And while activity has
had ups and downs, it has
been muted in recent years
due to low interest rates and
sagging volatility.
This past quarter, however,
volatility returned and derivatives such as stock-index futures and options picked up
along with activity in exchange-traded funds, which
also reside in banks’ stocktrading, or equities, departments.
Overall, U.S. options trading
enjoyed its busiest quarter in
history, by one measure, according to research from consulting firm Tabb Group and
data provider Hanweck. Nearly
1.4 billion options contracts
Equities trading revenue at big U.S. banks in the first
quarter was the highest in years.
Huawei
Scrutinized
Over Iran
Sanctions
First-quarter equities trading revenue at the biggest
Wall Street banks leapt 32% from same period in 2017.
Rest of year
$30 billion
$1 billion
Bank of America
1Q 2017
$2
$3
1Q 2018
BY STU WOO
AND ARUNA VISWANATHA
Citigroup
20
First quarter
WASHINGTON—The Justice
Department is investigating
whether Huawei Technologies Co. violated U.S. sanctions related to Iran, according
to people familiar with the
matter, a move that opens a
new avenue of scrutiny of the
Chinese cellular-electronics giant on national security
grounds.
It is unclear how far the
criminal probe and parallel
civil inquires by other federal
departments have advanced or
what specific allegation agents
are pursuing. A Huawei
spokesman declined to comment.
Such a probe raises the
stakes for Huawei, which is
facing a series of actions by
Washington to diminish the
company’s already limited
business in the U.S. It also
could have spillover effects for
its much larger business overseas, particularly in Europe.
Analysts said a worst-case
scenario could entail Huawei
suffering the same fate as
smaller Chinese rival ZTE
Corp., which has lost access to
U.S.-made electronic components in a similar probe.
Investors on Wednesday
sold down shares in some of
Huawei’s suppliers, including a
group of small optical-technology firms like Lumentum
Holdings Inc., after The Wall
Street Journal reported the
probe. Shares in Qualcomm
Inc., which supplies Huawei
with chips, also edged lower.
The Trump administration
has cited Huawei, the world’s
largest maker of cellular-tower
electronics and other telecommunications equipment, as a
threat to U.S. leadership in the
race to develop the future of
Please see HUAWEI page B4
Goldman Sachs
10
JPMorgan Chase
Morgan Stanley
0
2009
’15
Derivatives activity has driven equities
trading revenue at the biggest banks.
Revenue
Equity derivatives
’18
The Cboe Volatility Index, or VIX, spiked in
the first quarter after a long, slow decline...
Stock trading
$15 billion
...and that helped lead to a big increase
in options trading activity.
Cleared U.S.-listed options contracts
30
1.5 billion
10
20
1.0
5
10
0.5
0
0
0
2012
’13
’14
’15
’16
’17
2017
’18
1Q 2015
Sources: bank filings (equities trading revenue); Coalition (stock trading, equity derivatives revenue);
Options Clearing Corp., Hanweck Associates, Tabb Group (contracts); WSJ Market Data Group (VIX)
were cleared in the first quarter, up 33% from a year ago,
the firms said.
“Some days, it was like
nothing I’ve ever seen before,” said Peter Maragos,
chief executive of Dash Finan-
cial Technologies, an options
and equities electronic-trading technology provider.
Only a small portion of the
revenue upswing came from
the buying and selling of actual shares in companies, ac-
’16
’17
’18
THE WALL STREET JOURNAL.
cording to bank trading executives. Instead, the biggest
gains came from clients such
as mutual funds, hedge funds
and pension portfolios trading stock derivatives, with
some investors aiming to
hedge positions and others
speculating on more big
swings.
If the volatility remains elevated and clients stay active,
moving their money to take
Please see BANKS page B11
Boeing Flies Over Global Trade Tensions
TRAVIS DOVE FOR THE WALL STREET JOURNAL
BY DOUG CAMERON
A Boeing plant in South Carolina. The aircraft maker reported earnings that exceeded expectations.
been hurt by trade-related
rhetoric between officials in
the U.S. and China. Mr.
Muilenburg said Boeing hadn’t
been affected by to-and-fro
tariff proposals from the U.S.
PERSONAL TECHNOLOGY | By David Pierce
New Gmail Is Smarter,
Securer—and Complex
Some people use their
email inbox
casually, as a
way to collect
receipts, appointment reminders and the
occasional check-in from the
relatives. Others use it hard:
Email is where they get most
of their work done, where
they plan and organize and
communicate. And, you
know, the receipts and appointment reminders and
relatives.
Starting this week, Google
is rolling out a redesign to
the Gmail web experience, its
biggest change since 2011.
While it eventually will come
to all of the service’s 1.4 billion users, it’s part of a
Google-wide effort to win
more users over to its premium business software,
dubbed G Suite. It is especially meant to woo current
Outlook users.
In my tests, I found the
new Gmail is remarkably
more powerful, with overdue
productivity and security enhancements. It’s also more
cluttered and complex.
Though it took a little time to
figure out, I’m already feeling
better about my inbox.
For now, the new Gmail is
opt-in—click the gear icon on
the top right side of your inbox and select “Try the new
Gmail.” If you do, don’t be
alarmed when everything
looks different. Google has
brought a more modern design sensibility to the app,
similar to the latest versions
of Android, but other than
some rounded corners and
new fonts, the basic structure hasn’t changed.
There is something new,
though. A sidebar to the
right of your inbox can now
display your Google Calendar
events, plus notes from
Google Keep and to-dos from
Google Tasks, two lesserPlease see PIERCE page B4
and China or sanctions involving Russia, a big supplier of titanium for aircraft parts.
China accounts for one-fifth
of Boeing’s jetliner deliveries.
The new facility to install
seats and other fittings such
as in-flight entertainment systems had drawn scrutiny from
then-presidential candidate
Donald Trump, who cited it as
an example of U.S. jobs being
moved overseas.
Mr. Muilenburg has said such
overseas facilities aren’t a direct
threat to the U.S. jobs, and will
help protect and expand domestic employment. He said the effort is an essential part of doing
business in China.
The aerospace company will
continue assembling 737s at
its factory near Seattle but
send some planes to China for
completion at the new plant, a
joint venture with the statecontrolled Commercial Aircraft Corp. of China Ltd.
Mr. Muilenburg also said on
Wednesday that Boeing is following guidance from U.S. officials on potential airplane sales
to carriers in Iran. He said
planned deliveries of jets had
been deferred beyond 2018 as
officials in Iran, the U.S. and Europe debate sanctions tied to
Iran’s nuclear program.
Potential sales to Iran aren’t
in Boeing’s order book, which
has swelled to more than 5,800
jets worth $415 billion.
Boeing is boosting production of its 737 and 787 jets to
Please see BOEING page B2
INSIDE
EUROPE PUTS
MORE WOMEN
ON BOARDS
MANAGEMENT, B6
Sonos Plans IPO as Market Picks Up
BY MAUREEN FARRELL
Sonos Inc., the Santa Barbara, Calif.-based wirelessspeaker company, is preparing
for an initial public offering
that could come as soon as
June or July, according to people familiar with the process.
Sonos, whose speaker system lets customers play music
in every room of their house,
has confidentially filed paperwork with the Securities and
Exchange Commission for an
IPO, these people said. This
week, the company held an analyst day at its offices in Santa
Barbara where senior executives outlined financials and
walked through details of the
business.
Sonos has raised about $110
million in primary funding
from investors, including Index Ventures and KKR & Co.
Last fall, the company’s chief
executive, Patrick Spence, told
The Wall Street Journal that
2017 revenue was on track to
cross $1 billion, helped by
sales of its $699 Playbase, a
wireless speaker for TVs.
Sonos, which would likely
look to raise several hundred
ANDREJ SOKOLOW/DPA/ZUMA PRESS
Boeing Co. aims to have a
new facility in China ready to
complete some of its 737 jets
by the end of this year, a sign
that the aerospace company is
taking trade tensions in stride.
Chief Executive Dennis
Muilenburg said Wednesday
that construction is under way
on a finishing center near
Shanghai that Boeing first announced in September 2015. The
company said it is needed to
compete with Airbus SE, which
already builds jets in China.
His comments on a postearnings call came as Boeing’s
first-quarter results soared
past analysts’ expectations,
and as the company boosted its
full-year guidance for profits
and operating cash flow. The
new guidance signals Boeing is
working through challenges in
the broader aerospace supply
chain related to engines and
other plane parts as it and Airbus—which reports Friday—
boost jetliner production.
The results also suggest
that Boeing’s business hasn’t
See more at WSJMarkets.com
Sonos is expected to have a value of $2.5 billion to $3 billion.
million dollars in proceeds
from the IPO, would have a
market value of about $2.5 billion to $3 billion, a person familiar with the deal said. Still,
pricing can typically change
up until the night before an
IPO begins trading.
Sonos’s likely near-term offering is expected to take
place as the IPO market, particularly for technology companies, is heating up after a
streak of weak issuance. For
years, U.S. tech companies in-
creasingly sought private capital or sold themselves to competitors or private-equity
firms in lieu of trying to raise
capital from public investors.
This week, five companies,
including electronic-signature
technology company DocuSign
Inc., are set to debut. Many
companies that have gone
public this year or are in the
planning stages have existed
for more than a decade—
DocuSign, for example, was
started in 2003, and Sonos
was founded in 2002.
Bankers, lawyers and investors expect this year’s IPO activity, which is above last
year’s levels, to ramp up even
further in the second half of
the year.
Two other technology companies—search engine Elasticsearch Inc. and business-software company Anaplan Inc.—
recently selected underwriters
for IPOs that could come in the
second half of 2018, further bolstering the pipeline of IPO candidates, people familiar with
the processes said. The Journal
has also reported that tech
companies Eventbrite and Upwork also are preparing IPOs
for the second half of 2018.
Elasticsearch, whose underwriting team will be led by
Goldman Sachs Group Inc.
and JPMorgan Chase & Co., is
expected to seek a valuation of
around $3 billion, people familiar with the process said.
Anaplan, which selected
Goldman Sachs and Morgan
Stanley to lead its IPO, is expected to seek a valuation of
around $1.5 billion in the public
markets, people familiar with
the company’s planning said.
.
B2 | Thursday, April 26, 2018
THE WALL STREET JOURNAL.
* ***
INDEX TO BUSINESSES
BUSINESS & FINANCE
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
A-B
G
S
Airbus..........................B1
Alphabet.A2,A8,B10,B12
Amazon.com
.................B2,B5,B10,B12
American Express.....B10
Anaplan.......................B1
Apple....................B4,B11
AT&T............................B5
Bank of America.......B11
BlackRock....................B6
Boeing.............B1,B2,B11
Broadcom .................... B4
Gawker Media.............B5
General Electric.....B2,B6
General Mills.............B12
Globalstar....................B3
Goldman Sachs Group
........................ B1,B6,B11
Guangzhou Automobile
Group.........................B3
Samsung Electronics
............................... B3,B4
Shire............................B2
SJW Group..................B3
Sodexo.........................B6
SoftBank Group........B11
Sonos...........................B1
State Street Global
Advisors....................B6
Steinhoff International
Holdings..................B11
California Water Service
Group.........................B3
Campbell Soup..........B12
Carlyle Group..............B6
Cboe Global Markets B10
CBS..............................B2
China UnionPay.........B10
Citigroup....................B11
Comcast...............A1,B11
Conagra Brands.........B12
Connecticut Water
Service ...................... B3
Credit Suisse.............B10
D-E
Danaher.......................B2
DocuSign .....................B1
Elasticsearch...............B1
Eventbrite ................... B1
Eversource Energy......B3
J-K
JPMorgan Chase..B1,B11
JUUL Labs...................B5
Kellogg.......................B12
Kimberly-Clark..........B12
KKR..............................B1
Kroger........................B12
L-M
Lumentum Holdings...B1
Mastercard................B10
Morgan Stanley...B1,B11
N
Netflix.......................B11
Nokia...........................B4
Northrop Grumman..B11
F
P-Q
Facebook . A1,B6,B11,B12
FedEx...........................B2
FiberLight....................B3
Ford Motor.............B3,B5
Funai............................B3
PayPal Holdings........B10
Philip Morris
International.....A2,B12
Procter & Gamble.....B12
Qualcomm..............B1,B4
B
Horbach, Sandra ......... B6
Immelt, Jeff................B6
Kelly, Megyn...............A1
C
Cavanagh, Michael ..... A4
Cohen, Stephanie........B6
Cruz, Shawn..............B12
E-F
Elson, Charles.............B2
Falk, Thomas.............B12
Flannery, John.......B2,B6
Friedman, Adena.......B10
G
Gensler, Gary............B11
H
Harmening, Jeff........B12
Hohn, Chris.................A4
Hooper, Kristina........B11
I-K
L
Lack, Andrew............A12
Loewengart, Mike.....B11
M
Maragos, Peter...........B1
Miller, Jamie...............B2
Monroe, Jay................B3
Moszkowski, Guy......B11
Murdoch, Rupert.........A1
N
Nathanson, Michael....B4
Nugent, Eileen............B6
U-V
Uber Technologies .... B11
UBS Group.................B11
United Continental.....B2
United Parcel Service.B2
Upwork........................B1
Viacom.........................B2
Visa............................B10
Volkswagen.................B3
W-Z
Walmart......................B2
Western Digital........B11
WeWork .................... B11
Wynn Macau.............B12
Wynn Resorts....B11,B12
ZTE..............................B1
Roberts, Brian ............ A4
Roberts, Scott...........B11
Ross, Lester..............B10
S
Sandberg, Sheryl........A8
Shapiro, Gary..............B3
Spence, Patrick...........B1
Squali, Youssef...........B4
Stewart, Beth.............B6
T
Z
Zaidi, Amir................B11
Zuckerberg, Mark ..... B12
RANDALL HILL/REUTERS
pectations as Boeing continued
to boost productivity and
aimed to raise margins to the
midteen range from around
11%. The company didn’t book
another charge on its delayed
military refueling tanker program, though it said costs had
increased, but added its defense and services units contributed to the rise in earnings.
Boeing said its profit rose to
$2.48 billion in the quarter
from $1.58 billion a year earlier, with per-share earnings up
to $4.15 from $2.54. Stripping
out pension costs, profit of
$3.64 a share was well ahead of
the $2.58 analyst consensus.
The company boosted its
guidance for full-year profit by
50 cents a share to a range of
$14.30 to $14.50.
Boeing Co. is enhancing
software on current and future
787 jetliners to prevent electrical spikes generated by lightning storms from potentially
disabling cockpit instruments.
The moves were initially
prompted by an incident years
ago when three of five primary
cockpit displays on a United Airlines 787 Dreamliner suddenly
stopped functioning after the
plane was hit by lightning. The
incident surprised regulators
and company safety experts
alike, as such equipment failures
were considered extremely improbable on such models.
The issue, and Boeing’s responses, were revealed in a recently released report by investigators from the U.S. National
Transportation Safety Board.
The document describes,
among other things, the hazards posed by a “high intensity
electric field radiated inside the
cockpit” from nearby lightning.
Such dangers historically
weren’t considered part of
mandatory airliner certification
standards because the underlying technical reasons weren’t
understood until the safety
board and Boeing joined forces
to investigate the unusual
United incident.
As the two-year-old jet was
climbing through rain showers
roughly six minutes after takeoff from London’s Heathrow International Airport in October
2014, according to the safety
board, the pilots noticed that
three displays and the captain’s
front windshield heating system weren’t working. The crew
never managed to get the
equipment back into service,
but the plane returned safely
to the field.
Ground inspections found
external evidence of lightning
strikes, though the aircraft’s
electrical system returned to
normal once it was rebooted.
The twin-engine aircraft was
dispatched to Houston, its original destination. United’s parent
is United Continental Holdings
Inc.
The NTSB report, however,
indicates that during additional
testing a year later, Boeing
demonstrated that 787 displays could blank out from exposure to an intense electric
field generated by a nearby
lightning strike. That was the
result in four out of 13 tests,
according to the NTSB report.
A Boeing spokesman declined to comment.
—Andy Pasztor
from gains at the businesses,
so it is exploring hybrid deals
instead of outright sales, The
Wall Street Journal has reported.
Its reaction to Danaher’s
approach reflects the industrial giant’s reluctance to part
with its most valuable pieces.
The life-sciences operation
is one of two main business
lines in GE’s sprawling healthcare division, one of the company’s biggest, with about
50,000 employees and $19.1
billion in revenue last year.
The larger piece sells MRI and
X-ray machines and other hospital equipment. The life-sciences segment accounts for
about 24% of the division’s
sales.
Viacom Signals Ad Recovery Holders of
BY IMANI MOISE
AND KEACH HAGEY
Viacom
Inc.
reported
smaller declines in sales and
rising profit in its most recent
quarter, as the media company
works to keep its turnaround
plan on track.
Like other traditional TVchannel providers, Viacom has
suffered as viewers cut their
cable subscriptions, resulting
in both lower advertising payments and less affiliate revenue generated through sub-
scription fees paid to cable
companies. Viacom, which offers such channels as MTV,
Nickelodeon and Comedy Central, said on Wednesday the
pain is easing.
“We’re exiting the first
half of our fiscal year with
real momentum and are excited about our return to
growth as we head into the
second half of the year,” Viacom Chief Executive Bob Bakish said Wednesday on a call
with analysts.
Although domestic advertis-
ing sales were off 3% in its fiscal second quarter, that was an
improvement from the previous quarter.
And the company said it is
expecting domestic ad sales to
return to growth by the year’s
final period.
Overall for its second quarter, Viacom reported a profit
of $256 million, up from $121
million, a year earlier. Revenue
fell 3.3% to $3.15 billion.
The company provided no
update on its potential tie-up
with CBS Corp.
UPS Offers Management Buyouts to Cut Costs
United Parcel Service Inc. is
offering buyouts to some management workers, aiming to reduce payroll as the company
ramps up investments to handle
the surge in online shopping.
UPS is making the voluntary
offers to U.S. managers who are
eligible for retirement and in
nonoperations roles. The Atlanta-based company didn’t disclose how many workers are eligible or how many jobs it hopes
to cut. It is the first early retire-
ment offer since 2010.
UPS, which is to report firstquarter earnings Thursday, had
more than 454,000 employees
at the end of last year, including
374,000 in the U.S. The majority
are represented by collective
bargaining agreements and
aren’t eligible for the buyout offer. UPS is negotiating with the
International Brotherhood of
Teamsters union to renew a
contract that expires in July.
The offer is part of an evalu-
ation of the company led by
Scott Price, a former Walmart
Inc. executive hired last year as
chief transformation officer.
The early retirement offer is
the latest move by UPS to reduce costs tied to its compensation and employee benefits. Last
year, UPS said it would freeze
pension plans for about 70,000
nonunion workers as it tries to
reduce a multibillion-dollar deficit
in its retirement accounts.
—Paul Ziobro
Takeda Closes In on Shire
BY PREETIKA RANA
AND PETER LANDERS
The aim is to prevent cockpit instruments from being disabled.
Lightning Hazards
Prompt Boeing
To Fix Jet Software
whose value has fallen by
more than half in the past
year. In that period, GE
changed leaders, slashed its
dividend and lowered its profit
targets.
GE is attracting interest in
several divisions, finance chief
Jamie Miller said last week.
She declined to comment on
specifics but said GE is open to
all sorts of structures including spinoffs, initial public offerings and straight cash deals.
“The structure can depend
on the counterparty,” she said
in a recent interview. “We are
looking to do deals that are
smart for the company.”
GE is seeking to avoid firesale prices and wants its investors to be able to benefit
W
Winklevoss, Cameron
...................................B10
Winklevoss, Tyler.....B10
Wynn, Elaine.............B12
Wynn, Steve.............B12
P-R
Continued from the prior page
meet demand, and also announced it would raise annual
output of the wide-body 767
aircraft to 36 in 2020. Boeing
has stopped making the passenger version of the plane,
but there has been heavy demand for planes converted for
use as freighters, and a version is being used as a military fuel tanker.
The freighter version has become the in-demand model for
many cargo carriers, including
FedEx Corp., and converted
passenger jets are being flown
on behalf of Amazon.com Inc.
First-quarter profit beat ex-
engage and isn’t pursuing a
deal, according to people familiar with the matter.
The structure and value of
the proposed transaction
couldn’t be determined, and
the people said there are no
active discussions. GE’s lifesciences business, which had
about $4.6 billion in revenue
last year, sells lab supplies
such as blood-collection kits as
well as equipment for biotech-
nology drug production and
research.
The unit could be worth
more than $20 billion, according to analyst estimates and
based on how much life-sciences businesses have fetched
in recent deals.
The abortive approach is
one of a number GE has received for various businesses
recently as competitors seek
to gain advantage from its
weakness and shows how the
once-mighty company’s fortunes have fallen.
GE has been restructuring
its business and conducting a
strategic review, as Chief Executive John Flannery seeks to
narrow its focus to improve
profits and revive shares
Thiel, Peter ................. B5
Prabhu, Vasant ......... B10
Pruzan, Jonathan......B11
BOEING
By Dana Mattioli,
Dana Cimilluca
and Thomas Gryta
T
Takeda Pharmaceutical
.....................................B2
Target..........................B3
TCI Fund Management
.....................................A4
Telefon L.M. Ericsson.B4
Tesla..........................B11
Thiel Capital................B5
Toyota Motor..............B3
Twitter..........B4,B11,B12
INDEX TO PEOPLE
Bailey, Brad...............B11
Bakish, Bob.................B2
Bellon, Sophie.............B6
Bollea, Terry................B5
Danaher Corp. recently expressed interest in a deal for
General Electric Co.’s life-sciences business, but GE didn’t
DAVID RYDER/REUTERS
C
H-I
Hong Kong Exchanges
and Clearing............B10
Huawei Technologies
............................... B1,B4
Index Ventures ........... B1
Intercontinental
Exchange.................B10
GE Spurns Danaher on Sale of Unit
Takeda Pharmaceutical
Co. is near a deal worth more
than $60 billion to buy European drugmaker Shire PLC,
having raised its bid four
times in a sign of how ardently Japan’s legacy companies are chasing growth
abroad as sales at home slow.
Shire said Wednesday it
would recommend shareholders accept Takeda’s fifth offer—$30.33 in cash and 0.839
Takeda share for each Shire
share—culminating a weekslong effort by the Osaka-based
company. It has until May 8 to
complete a deal.
The acquisition would be
the biggest to date by a Japanese company of a Western
one, according to Dealogic,
and create the world’s eighthlargest drugmaker by sales.
Buying the Dublin-based
maker of rare treatments
would help Takeda pivot away
from its home base—where
the government recently began implementing more stringent drug-pricing controls—to
more lucrative markets such
as the U.S. and Europe.
The prospect of taking on
significant debt to fund the
deal has sent Takeda’s stock
price into a tailspin since the
Japanese company expressed
interest in Shire, whose market value now exceeds its own
by about $15 billion. Shares in
Takeda slid 7% Wednesday,
eating into the value of the
stock portion of the company’s
offer and bringing the total
decline since late March, when
it first said it was courting
Shire, to more than 18%.
Credit-ratings firm Moody’s
said the deal could invite “a
multinotch downgrade” from
its current single-A rating.
“You would be nervous,
scared even, if you are a
shareholder in Takeda,” said
Fumiyoshi Sakai, a Credit
Suisse pharmaceutical analyst
in Tokyo.
Takeda’s pursuit of Shire is
emblematic of a trend: Japan’s
behemoths, seeing little potential at home owing to a shrinking population or unfavorable
regulation, are looking for
growth overseas.
The Takeda-Shire deal
would lift the value of this
year’s outbound mergers and
acquisitions activity by Japanese companies to roughly
$100 billion, according to Dealogic—easily on track to top
the full-year record of $111 billion, set in 2012.
Japanese pharmaceutical
companies have an additional
reason to search for acquisitions: Like their Western
counterparts, they need to replenish shrinking portfolios of
patent-protected drugs.
Healthy Appetite
Takeda's deal for Shire would be the biggest acquisition to date by a Japanese company of a Western one.
Japan’s top five outbound deals
ANNOUNCED
ACQUIRER
TARGET (COUNTRY)
DEAL VALUE*
2018
2016
2012
2006
2014
Takeda Pharmaceutical
SoftBank
SoftBank
Japan Tobacco
Suntory
Shire (U.K.)
ARM Holdings (U.K.)
Sprint Nextel (U.S.)
Gallaher Group (U.K.)
Beam (U.S.)
$64 billion†
31.8
21.6
14.7
14.0
*Excluding debt †Based on Takeda's valuation of Shire; pending deal
Sources: Takeda Pharmaceutical's own valuation of Shire (pending deal); Dealogic (rest of the deals, values exclude debt)
THE WALL STREET JOURNAL.
GE Stock
Chilly on
KPMG
BY MICHAEL RAPOPORT
Shareholders at General
Electric Co. approved KPMG
LLP on Wednesday as the company’s auditor for another
year, but only after a large
level of opposition in the wake
of GE’s accounting issues and
criticism from proxy-advisory
firms.
Only 64.9% of GE shareholders voted to ratify KPMG as
GE’s auditor, according to preliminary figures released at
GE’s annual meeting. That represents one of the highest levels of shareholder opposition
to an auditor at any company
in recent years, according to
data from consulting firm Audit Analytics.
The GE vote adds to KPMG’s
woes, which include a scandal
in which former partners were
indicted over allegations that
people at the firm had access
to secret information from a
regulator. Separately Wednesday, KPMG announced that it
plans to take the unusual step
of adding independent directors to its board, a move aimed
at improving the firm’s corporate governance.
GE has said the Securities
and Exchange Commission is
investigating some of its accounting practices, including
its need for increased reserves
in its insurance operations and
its accounting for long-term
service agreements. KPMG,
which has been GE’s auditor
for 109 years, didn’t flag any of
the problems.
Earlier this month, Institutional Shareholder Services
and Glass Lewis & Co., the two
biggest proxy-advisory firms,
both recommended that GE
shareholders vote against reappointing KPMG as GE’s auditor. ISS cited “the apparent extent of GE’s previously
undisclosed liabilities and accounting issues.”
The level of opposition was
“extraordinary,” said Charles
Elson, director of the John L.
Weinberg Center for Corporate
Governance at the University
of Delaware. “I think for the
[GE] board it’s got to be a
rather sobering vote.”
GE said in a statement that
its audit committee, which reviews the appointment of the
company’s outside auditor,
“will certainly be taking this
indication from our shareowners into account.” A KPMG
spokesman couldn’t be reached
for comment on the vote.
Shareholder votes on reappointing auditors are typically
all but automatic, with only token opposition. Last year,
94.3% of GE shareholders
voted in favor of KPMG.
The latest GE vote marks
only the fifth time since 2015
that an auditor for an S&P 500
company has won less than
90% support from shareholders, according to ISS Analytics.
According to the Audit Analytics data, in more than 15,000
shareholder votes to ratify auditors at public companies
from 2013 to 2017, there were
only 22 cases, less than 0.2%,
in which more than 25% of
shareholders were opposed.
KPMG’s move to appoint
new outside directors is more
of a response to the firm’s information-leak scandal. That
incident led to the firing of a
handful of partners in 2017
and the indictment of five people in January.
—Thomas Gryta
contributed to this article.
.
THE WALL STREET JOURNAL.
Thursday, April 26, 2018 | B3
NY
* *
BUSINESS NEWS
BY ANDREW TANGEL
Prepare to pay more for
your next television.
The Trump administration’s
proposed tariffs on Chinese
imports include a 25% levy on
TVs and related components.
A report commissioned by two
trade associations says the
levy could push up television
prices in the U.S. by 4% overall, and by 23% for those from
China. It isn’t clear whether
manufacturers or retailers
would shoulder the added
costs or pass them along to
consumers.
The tariffs threaten to affect plans for this year’s holiday shopping season, said
Gary Shapiro, chief executive
of the Consumer Technology
Association, one of the trade
groups that commissioned the
report. Retailers by this time
of year begin to plan their orders for the end-of-year rush.
“The uncertainty level is ex-
Foreign Channels
China is the second-biggest
source of U.S. television imports,
behind Mexico.
Top exporters of TVs and
related components, 2017
Mexico
$6.5 billion
China
$3.9 billion
Thailand
$284 million
Vietnam
$275 million
South Korea
$48 million
Source: Consumer Technology Association
analysis of U.S. government trade data for
products subject to proposed tariffs.
THE WALL STREET JOURNAL.
traordinarily high,” Mr. Shapiro said. The report, based on
trade data and an analysis of
demand, suggested U.S. consumers could pare TV purchases by 8%, in terms of dollars spent, if the tariffs lead to
higher prices.
Last year, the U.S. imported
about $3.9 billion in flatscreen TVs and components
from China that would be subject to the tariffs, or 35% of
total U.S. imports of those
products, according to the
technology association.
Among the biggest importers of TVs from China last
year were retailer Target
Corp.; Funai Corp., seller of
electronics brands including
Magnavox and Sanyo; and
Samsung Electronics Co., according to data from the
trade-analysis firm Panjiva.
“Like all companies, we are
monitoring the situation very
closely and assessing the potential impact to our business
and our guests,” a Target
spokesman said. Funai and
Samsung
representatives
didn’t respond to requests for
comment.
Samsung, the Seoul-based
conglomerate, might be wellpositioned to deal with tariffs
on Chinese imports, according
to a research note by Panjiva
and S&P Global Market Intelligence. Aside from its products
made in China, Samsung sends
most of its U.S.-bound TVs
from Mexico, according to
Panjiva. Over half of U.S. TV
imports that would be subject
to the U.S. tariffs on Chinese
products came from Mexico
last year, or $6.5 billion.
TVs and related components are among the more
than 1,300 products from
China, valued at $50 billion,
that would be subject to tariffs
the Trump administration announced in March.
The tariffs are subject to a
public-comment period before
the administration decides
whether to implement them in
coming months.
AGENCE FRANCE-PRESSE/GETTY IMAGES
Pricier TVs Seen
As Tariffs Loom
A rocket carrying Globalstar satellites in Kazakhstan in 2013. Globalstar is seeking firmer financial footing with its FiberLight deal.
Globalstar Sets Telecom Merger
Satellite company
plans to combine with
landline firm in a deal
valued at $1.65 billion
BY DREW FITZGERALD
Globalstar Inc. plans to
merge with landline operator
FiberLight LLC in a $1.65 billion combination designed to
put the unprofitable satellite
company on firmer footing as
it chases new customers.
The complex deal engineered by telecommunications
investor Jay Monroe would
also fold in assets of invest-
Water Utilities in 4-Way Bid War
BY DANA CIMILLUCA
AND DANA MATTIOLI
California Water Service
Group has made a takeover offer for water utility SJW
Group, according to people familiar with the matter, possibly setting up a rare four-way
bidding war.
SJW last month agreed to a
$750 million merger with Connecticut Water Service Inc.
Last week, Connecticut Water
said it received an offer from
Eversource Energy, which it
rejected.
Now there is an interloper
on the SJW side too, which
the company noted in a securi-
ties filing Wednesday without
naming the party. According
to the people, the bidder is
California Water. Its cash bid,
worth $68.25 a share and
made April 4, was also rejected, the filing said.
SJW stock closed Wednesday at $56.90.
The merger scrum is unusual in a number of respects.
There are few precedents for
an announced deal that faces
bids to break it up on both
sides.
The SJW-Connecticut Water
deal would be the first such
tie-up in some 20 years in the
tightly regulated water industry.
For California Water or
Eversource to succeed, they
likely would need to raise
their offers and win the backing of their respective targets;
companies rarely succeed in
hostile bids in regulated industries.
The frenzied bidding war is
an illustration of how a
merger announcement, even in
a sleepy industry, can jolt
other companies into action
and kick off a wave of consolidation.
A combined SJW-Connecticut Water would be the thirdlargest U.S. water and wastewater utility based on rate
base and enterprise value.
Electric Car Makers Lean on China
BY TREFOR MOSS
AND YOKO KUBOTA
that they would be leaning on
their Chinese partners to meet
the government requirements.
All auto makers operating
in China must build EVs equivalent to roughly 3% to 4% of
their total output in 2019, rising to about 4% to 5% in 2020,
according to Beijing’s new system, which is designed to
drive electric-car uptake.
Toyota will start producing
and selling an EV called the ix4,
based on technology supplied by
its JV partner Guangzhou Automobile Group Co., this year, a
company spokesman said.
—William Boston
and Zhu Lin
contributed to this article.
ANDY WONG/ASSOCIATED PRESS
Some of the world’s biggest
auto makers say they will rely
on their Chinese partners to
help them meet Beijing’s mandates for electric vehicles, using the joint-venture arrangements that China has now
agreed to phase out.
Beijing recently said it
would gradually end rules that
effectively forced foreign auto
makers to establish 50-50
partnerships with Chinese
companies if they wanted to
manufacture cars in China.
Foreign auto makers can set
up independent companies to
build electric vehicles later
this year, according to the new
rules.
The
action—following
Trump administration claims
that the joint-venture rules
compromise U.S. auto makers’
trade secrets—has triggered
debate over whether foreign
auto makers would exit the
JVs and reap more profit, or
continue them as necessary to
do business in the world’s
largest auto market.
When it comes to meeting
EV-production targets, auto
makers including Ford Motor
Co., Toyota Motor Corp. and
Volkswagen AG said Wednesday at the China Auto Show
A Ford GT on display in Beijing. The auto maker plans an electric-vehicle joint venture in China.
ment firm Thermo, which
holds minority stakes in several companies, including CenturyLink Inc., and $100 million
of cash.
Globalstar, FiberLight and
Thermo are all controlled Mr.
Monroe, who serves as Globalstar chairman and chief executive. He said in an interview
that the new structure suits a
changing telecom marketplace
in which satellite, wireless and
fixed broadband providers are
all moving onto the same turf.
Globalstar, which is based
in Covington, La., provides
satellite links to devices
around the world and holds a
trove of U.S. airwave licenses.
Mr. Monroe said the new
company will try to partner
with cellphone carriers and
other network operators to
make better use of those licenses. The company also has
rights to use airwaves outside
of the U.S.
“If they’re looking for
global
spectrum
assets,
Globalstar becomes a one-stop
shop for them,” Mr. Monroe
said.
The company generated
$112.7 million of revenue last
year but has struggled with
losses for a decade.
In 2012, it sought to
broaden its options by seeking
approval to use its spectrum
licenses for land-based service. U.S. regulators later approved a scaled-back version
of the plan.
Closely held FiberLight operates 14,000 route miles of fiber-optic cables in and around
cities including Atlanta, Houston and Miami. Its network
serves cellphone towers, data
centers and other large business customers.
The combined company, to
be named Thermo Cos., would
have about $1.7 billion of net
operating losses that can be
used to cut its U.S. taxes.
Globalstar shares fell 11% to
65 cents on the New York
Stock Exchange on Wednesday.
.
B4 | Thursday, April 26, 2018
* ***
THE WALL STREET JOURNAL.
TECHNOLOGY
WSJ.com/Tech
Twitter Gets in the Growth Habit
Company posts 21%
rise in quarterly
revenue, expects to be
in black for full year
BY GEORGIA WELLS
It’s two in a row for Twitter
Inc.
After starting its life as a
public company with 16
straight quarters of losses, the
social-media company reported its second consecutive
profitable quarter, a heartening sign as it works to turn the
attention of its users into a viable business.
Twitter said it expects to be
profitable for the full year. It
had reported its first three
months in the black as a publicly traded company in the
quarter ended Dec. 31, after
having set a goal of “driving
toward” profitability in 2017.
Revenue in the first quarter
rose 21% from a year earlier to
$664.9 million. The company
said video ads now account for
more than half of its revenue.
Analysts polled by Thomson
Reuters had expected $605.4
million in revenue.
Twitter posted a profit of
$61 million, or 8 cents a share,
swinging from a loss of $61.6
million, or 9 cents a share, a
year earlier. On an adjusted
basis, per-share earnings came
in at 16 cents, above the 12
cents analysts expected.
The profit was small. Still,
the growth was important because investors wanted to see
whether Twitter’s performance
was a blip or the start of a
trend, said Youssef Squali, an
analyst with SunTrust Robinson Humphrey Inc.
“It seems like momentum is
accelerating,” Mr. Squali said.
“2018 is shaping up to be
pretty strong.”
Twitter’s stock, however,
was down 2.4% at $29.75 in
Wednesday trading. Analysts
blamed several factors, including Twitter’s warning that revenue growth likely will slow
for the remainder of the year
and that a pullback was expected after the stock’s 40%
run-up over the past six
months.
“It wasn’t enough to drive
another leg of growth and
Twitter’s valuation looks high
relative to peers,” said Michael
Nathanson, senior research analyst at MoffettNathanson.
Twitter said it added six
Staying Aloft
After years of losses, Twitter posted its second consecutive profitable
quarter as its user base continues to grow.
Quarterly profit/loss
$100 million
Monthly active users
$61 million
400 million
336 million
50
300
0
200
–50
–100
100
–150
–200
0
2014
’15
’16
’17
’18
Source: the company
million people who use its
product each month during the
quarter, bringing the total to
336 million. Analysts expected
Twitter to add five million
monthly users, according to
data company FactSet.
But just one million of the
new monthly users came
from the U.S. The company
now has 69 million monthly
users in the U.S. and 267 mil-
2014 ’15
’16
’17
’18
THE WALL STREET JOURNAL.
lion abroad.
Twitter said the number of
users who use its product daily
grew 10% from a year ago, a
smaller rate of growth than
seen last year. The company
doesn’t disclose the actual
number of daily users.
Advertising revenue rose
21% to $575 million as users
engaged with more sponsored
posts, the company said, even
as the cost of those sponsored
engagements fell.
Twitter said global revenue
from data licensing and other
areas rose 20%. Data, which
makes up about 13% of Twitter’s revenue, has been a
bright spot as its margins are
wider than those for its ad
business.
Twitter collects information
about what users tweet publicly, for example, to help
brands figure out how people
feel about their products. The
company, though, has come
under scrutiny for selling data
about its users’ tweets.
On the call with analysts,
Chief Executive Jack Dorsey
defended the business, saying
Twitter doesn’t provide any
personal data that isn’t already visible on the social network. “We are different from
our peers in that Twitter is
public,” Mr. Dorsey said.
For the current quarter,
Twitter projected adjusted
earnings before interest, tax,
depreciation and amortization
of between $245 million and
$265 million—more than the
$217 million analysts expect,
according to FactSet.
—Austen Hufford
contributed to this article
Continued from page B1
mobile communication. The
company is also the world’s
No. 3 maker of smartphones.
Washington’s treatment of
Huawei has exacerbated tensions with Beijing as the two
sides do battle over trade issues. Meanwhile, the heightened U.S. scrutiny, tied originally to fears the Chinese
government could use Huawei
for cyber-subterfuge, has unsettled some allied countries
where the company has big
business.
The Justice Department investigation into Huawei follows administrative subpoenas
on sanctions-related issues
from both the Commerce Department and the Treasury
Department’s Office of Foreign
Assets Control, according to
these people.
The Commerce and Treasury departments can impose
administrative penalties and
regulatory sanctions on the
company.
The Justice Department
probe, which previously hadn’t
been reported, represents a
more serious level of potential
misconduct.
If investigators conclude
the company intentionally violated U.S. export laws, Huawei
could face criminal penalties,
the imposition of a corporate
monitor and the prosecution
of individuals involved in any
illicit activity, among other
potential consequences.
PIERCE
Continued from page B1
known Google productivity
tools that work on your
phone or computer. This
makes it far easier to check
your calendar while scheduling a meeting, or to check
your notes to see which updates you’re emailing about.
Google missed some opportunities here: While you
can drag an email to your todo list to create a task, I’d
MARLENE AWAAD/BLOOMBERG NEWS
HUAWEI
The Chinese company, a leading seller of smartphones, says no government has ever asked it to spy on or sabotage another country.
Last year, ZTE agreed to
pay $892 million in penalties
imposed by the Justice, Commerce and Treasury departments related to violating
sanctions.
The
company
pleaded guilty and admitted it
broke a law that controls the
export of sensitive goods by
shipping U.S. telecom equipment to Iran.
Last week, the Commerce
Department banned U.S. companies from selling components to ZTE. That punishment has slammed ZTE, which
relies on American suppliers
to make both telecom equipment and smartphones. The
Commerce Department said
Friday that it would let ZTE
present evidence in an informal appeal.
Representatives of the Justice, Commerce and Treasury
departments declined to comment.
The New York Times reported last year that the Treasury had sent Huawei a sanctions-related administrative
subpoena in December 2016,
after a separate Commerce Department inquiry into Huawei.
The company came under
U.S. pressure in 2012 when a
congressional report concluded both Huawei and ZTE
could become a tool for statesponsored spying or sabotage.
U.S. officials say Beijing could
order the companies to take
control of the telecom equipment they make to disable
communications, spy or launch
other cyberattacks.
Washington sees itself battling China for dominance of
an increasingly digital world,
and since late last year has
taken additional steps to curb
the two companies.
Huawei and ZTE have denied they are a threat. A Huawei spokesman said the company is employee-owned and
that no government has ever
asked it to spy on or sabotage
another country. He said Huawei poses no greater risk than
its rivals, given they share a
global supply chain.
Huawei in 2017 led the
global
telecom-equipment
market with a 27% share,
while ZTE ranked fourth with
10%, according to researchfirm Dell’Oro Group.
Largely because of the 2012
congressional report, the Chinese companies’ U.S. market
share is less than 1% for cellular and landline networks,
compared with 48% each for
Finland’s Nokia Corp. and
Sweden’s Ericsson AB.
like to be able to drag emails
into the notes of calendar
events, or attach Keep notes
to messages. I’d also like to
access my contacts in the
same sidebar.
And while Google Calendar
is fantastic, and Keep is a
solid note-taking app, Tasks
doesn’t measure up. It can’t
handle simple things like recurring tasks, and even re-ordering tasks or adding due
dates is complicated. (Confusingly, Google has another task
manager, Reminders, that has
nothing to do with Tasks.)
Jacob Bank, Google’s
Gmail product manager, says
he knows Tasks needs work.
After years of Google ignoring the feature, Mr. Bank
calls this Gmail update “a
statement of intent” that
Google won’t forget about
Tasks again. The company finally released a standalone
Tasks app for iOS and Android.
Gmail pops it to the top with
a message saying it’s been
three days, maybe I should
respond. Turns out a little
reply-now shame goes a long
way.
Email isn’t to be trusted
these days—it’s too hackable,
too insecure for sending important information. So security is a key feature of the
new Gmail.
When you compose a message, you can turn on Confidential Mode. As the sender,
open the message.
One of email’s biggest security holes is phishing, in
which hackers posing as a
trusted contact try to get you
to share information or even
click on a compromised link.
With this redesign, Gmail
will now splash a huge, impossible-to-ignore red banner
over any email it thinks is a
scam.
“No user should accidentally click on an email we
knew was phishing,” said Mr.
Bank. Google can’t prevent
all security breaches, he says,
but this can help.
ADVERTISEMENT
The Mart
To advertise: 800-366-3975 or WSJ.com/classifieds
BUSINESS FOR SALE
BUSINESS OPPORTUNITIES
Amazing opportunity
to purchase a turn key winery
and onsite catering operation
located in Belvidere, NJ.
Complete package includes
22.53 acres, 5 buildings, large
deck, multiple tented areas
and the complete winemaking
equipment and inventory.
Perfect for an outlet!
Owner to retire after 34 years.
Email: mattyfla@gmail.com
or call 908-625-5253
for abrochure or to set up
a time to visit.
Valve Sales & Service Co. Inc.
45 yrs. in bus. - 2+ ac. property - 32K sqft
bldg. - machine shop / testing facility - 6
mil. #s of valve inventory. Large rolling
stock. All lien free. For sale, all or part $1 - 4 mil. By retiring owner. Houston, TX.
(713) 898-0655 § 713-678-4200
howard@houstonvalve.com
Long Island hotel opportunity...
Seeking joint venture partner or sale
165 rooms and conference center
Filing for approvals § Major upscale flag
New tax act writeoffs $41,000,000
$31,000,000 in 2020.
Long Island expressway exit
(561) 716-5253
TRAVEL
Save Up To 60%
First & Business
INTERNATIONAL
Major Airlines, Corporate Travel
Never Fly Coach Again!
www.cooktravel.net
(800) 435-8776
S
till, just having these
things in one place
goes a long way. One
enduringly great thing about
Microsoft Outlook is that you
can manage nearly your entire work life within one app.
Gmail now feels the same
way—even when I was working offline. Google plans to
add a similar sidebar to
other G Suite apps too.
Users of Google’s alternative email product, Inbox,
have had access to a few
email-ninja features now
coming to all Gmail users:
Snooze lets you temporarily
boot an email out of your inbox. “High Priority” notifications mean getting bugged
only about important emails.
My favorite, Smart Reply,
provides three guesses as to
what you might write back.
It likes exclamation points
and says “Sounds great,
thanks!” a lot, but it provides
a right-enough response
shockingly often.
I encountered one wholly
new feature twice in my testing. If I let a message languish in my inbox but Gmail
deems it important—maybe
it’s from someone I usually
respond to quickly—the new
What your email
knows about you
might be scarier than
what Facebook knows.
you can set the message to
be deleted after a period of
time. You can un-send any
Confidential Mode message.
You can even require the recipient to enter a passcode
before they can read it. Messages still live in your sent
folder as long as you let
them, though, so you should
periodically purge the most
important stuff.
If everyone on the chain
uses Gmail, Confidential
Mode messages work like
any other email, except nobody can print or forward it.
If your company uses Gmail,
you might want to make
heavy use of Confidential
Mode. If you’re emailing people outside of Gmail, it’s a
little clunky but it works—
they have to click a link to
T
o prevent others from
being able to read your
emails, Google has to...
read your emails. Last year,
Google stopped using that
content as part of its ad-targeting systems—the ads you
see in the free Gmail are
based on your overall Google
profile. (Gmail that comes as
part of a business G Suite
plan doesn’t serve ads at all.)
But Google’s still processing
all that data. And what your
email knows about you might
be scarier than what Facebook knows.
There are a few good
email providers that don’t
collect this kind of data, like
ProtonMail. But Gmail is the
de facto email standard now.
With this redesign, I’m using
it more than ever, and it’s cut
down on the number of tabs
I need open to live my life.
For the first time ever, I
even feel like if you email me
there’s a good chance I’ll respond. In a few days. When
Gmail reminds me.
Qualcomm
Profit Falls
As Royalty
Spat Hurts
BY TED GREENWALD
Qualcomm Inc. said its
profit plunged 52% from a
year earlier as it dealt with a
tangle of challenges, including
Apple Inc. and Huawei Technologies Co. continuing to
withhold royalties for using
the company’s patents.
The San Diego-based chip
maker reported a profit of
$363 million for its fiscal second quarter. Revenue rose
4.9% to $5.26 billion.
The chip maker’s shares
were up 2.1% in after-hours
trading. The stock finished
Wednesday’s session down
0.4% at $49.75, below its price
of $53 a year ago and well below the $79 a share offered by
Broadcom Inc. in an unsuccessful takeover effort that
ended in March.
The results included a $310
million charge resulting from
the company’s efforts to save
$1 billion in expenses by 2019.
That program recently resulted in 1,500 layoffs in California.
Further cost cuts will be
made “over the next few
months,” Qualcomm finance
chief George Davis said in an
interview.
Qualcomm said revenue
from the sales of chips used in
mobile devices rose 6% to $3.9
billion, continuing their steady
growth in recent quarters.
Qualcomm’s revenue from
licensing patents, though,
tumbled 44% to $1.26 billion,
amid fallout from the company’s lengthy disputes with
Apple and Huawei, which have
withheld billions of dollars in
royalty payments. That part of
the business typically contributes more than half of Qualcomm’s pretax earnings.
Patent-licensing revenue
will decline further in the
months ahead, Qualcomm said
on a conference call with analysts. For the current fiscal
third quarter, it forecast lower
revenue in that division by
10% to 27% from a year earlier.
Samsung
Gets Lift
From Chips
BY TIMOTHY W. MARTIN
SEOUL—Samsung
Electronics Co. reported its fourth
consecutive quarter of record
operating profit, capitalizing
on high demand for its memory chips.
But investors are focused
on how much longer Samsung,
the world’s largest smartphone maker, can maintain
this pace. Memory-chip prices
aren’t likely to surge as much
as they did over the past year,
and high-end handset sales
could be underwhelming as
consumers upgrade their devices less frequently.
The South Korean company
said first-quarter net profit
rose 52% to 11.69 trillion South
Korean won ($10.8 billion)
from 7.68 trillion won a year
earlier. Revenue increased to
60.56 trillion won from 50.55
trillion won. Operating profit
grew by 58% to 15.64 trillion
won from 9.9 trillion a year
earlier. Analysts polled by S&P
Global Market Intelligence had
expected the company to post
a net profit of about 11 trillion
won and revenue of 60.2 trillion.
First-quarter
operating
profit rose to a record. But
net profit, which includes expenses and other costs, was
eclipsed by the 12.26 trillion
won reported for the final
three months of 2017. Samsung has been spending aggressively to boost sales for
its latest iteration of its flagship device, the Galaxy S9.
The company’s memory
chip sales are in high demand
from manufacturers of internet-connected devices and
data servers.
While Samsung said it expects the memory business to
remain strong next quarter,
the company acknowledged
that driving profit in other divisions “will be a challenge”
due to a weaker market for
flexible displays and tougher
competition among high-end
phone makers.
.
THE WALL STREET JOURNAL.
Thursday, April 26, 2018 | B5
* *
TECHNOLOGY
Thiel Will Drop
Bid for Gawker
This announcement is neither an offer to purchase nor a solicitation of an offer to sell shares of common stock of Whirlpool Corporation. The Offer (as defined below) is made solely by
the Offer to Purchase, dated April 26, 2018, and the related Letter of Transmittal, and any amendments or supplements thereto. The Offer is not being made to, nor will tenders be
accepted from or on behalf of holders of shares of common stock in any jurisdiction in which the making or acceptance of offers to sell shares of common stock would not be in
compliance with the laws of that jurisdiction. In any jurisdiction where the securities, blue sky, or other laws require the Offer to be made by a licensed broker or dealer, the Offer
shall be deemed made on behalf of Whirlpool Corporation by the Dealer Managers (as defined below) or one or more brokers or dealers registered under the laws of such jurisdiction.
Notice of Offer to Purchase for Cash
BY JONATHAN RANDLES
by
Whirlpool Corporation
ANDREW HARRER/BLOOMBERG NEWS
Billionaire investor Peter
Thiel has agreed to end his pursuit of Gawker.com to avoid a
potential lawsuit over his secretly funding litigation that
drove the news and gossip
blog’s publisher out of business.
The agreement between Mr.
Thiel, his firm Thiel Capital
LLC and an adviser liquidating
Gawker Media LLC was filed
Wednesday in the U.S. Bankruptcy Court in New York. The
accord concludes more than a
year of legal wrangling over a
possible lawsuit and clears the
way for a sale of Gawker,
which ceased publishing in
2016 but remains on the web.
Mr. Thiel has agreed to
withdraw from the sale process and to provide the eventual buyer a legal release for
articles in the Gawker archive.
The release also covers writers
who wrote articles for the site
before the blog shut down, according to the filing.
Lawyers for Gawker Media
have asked a judge to sign off
on the agreement.
The sparring with Mr. Thiel
was one of the last issues in
Gawker Media’s nearly twoyear-old bankruptcy. Mr. Thiel
funded retired professional
wrestler Hulk Hogan’s successful case against Gawker over its
publishing excerpts from a surreptitiously recorded video of a
sexual encounter with the wife
of his former friend, radio show
Peter Thiel underwrote lawsuit.
host Bubba the Love Sponge.
A Florida jury awarded
Terry Bollea, Mr. Hogan’s real
name, a $140 million judgment
in March 2016. The award
forced Gawker Media into
chapter 11 after the publisher
was denied an opportunity to
appeal. The case was settled in
bankruptcy for $31 million.
Gawker Media maintained the
judgment would have been
overturned on appeal.
Mr. Thiel has said he underwrote the case because publishing the tape invaded Mr.
Bollea’s privacy. The venture
capitalist and Facebook Inc.
board member has said he
wanted to keep his role out of
public view so as not to distract from the entertainer’s
day in court. Gawker published
an article in 2007 identifying
Mr. Thiel as gay, which he has
said also violated his privacy.
WILSON ROTHMAN/THE WALL STREET JOURNAL
Amazon’s Echo Becomes a Nanny
Amazon.com Inc. is focusing
on a new niche for Echo speakers: children’s bedrooms and
playrooms.
An over-the-air free update is
set to allow owners of the talking
speakers to turn on the so-called
FreeTime setting, which locks
down certain functions, adds new
controls and transforms artificially
intelligent Alexa from virtual assistant to virtual nanny.
Most Echo speakers are kept
in common areas, but they are increasingly migrating to bedrooms—even children’s bedrooms.
Starting May 9, parents will be
able to apply the controls to particular Echo speakers from inside
the Alexa app. They can set a
bedtime, after which Alexa won’t
field requests. They can turn off
voice purchasing and filter explicit
lyrics from Amazon Music. They
can approve certain apps, which
Amazon calls skills.
Those already subscribing to
Amazon’s FreeTime Unlimited service can bring up premium content on FreeTime-enabled Echo
speakers, including children’s Audible audio books and ad-free ageappropriate music streams.
—Wilson Rothman
BUSINESS WATCH
JUUL LABS
E-Cigarettes Maker
Backs Regulation
E-cigarettes maker Juul Labs
Inc. plans to back efforts to raise
the minimum age for buying tobacco products and spend at
least $30 million on measures
that could help keep its items
away from minors.
Juul said Wednesday it would
support state and federal measures to restrict tobacco purchases to people 21 and older.
The announcements came a
day after the Food and Drug Administration requested information from the company that
could help explain why its products appeal to youngsters.
In August, Juul raised the
minimum age requirement for
buying products on its website
to 21 from 18. Federal regulation
prohibits anyone under 18 from
purchasing e-cigarettes. Some
states have higher minimum
ages of up to 21.
—Aisha Al-Muslim
FORD MOTOR
Auto Maker to Cut
Spending, Some Cars
Ford Motor Co. plans to boost
profit margins faster than initially
forecast, saying it will slash capital spending in coming years and
kill unprofitable vehicle lines.
Ford said it aims to meet an 8%
profit-margin goal two years earlier
than expected. The commitment
comes as first-quarter net profit
rose 9% to $1.7 billion because of a
lower corporate tax rate.
Ford said it will sell only the
Mustang and a crossover version of the compact Focus in the
U.S. soon. That means the Fusion and Taurus sedans and the
small Fiesta will be eliminated.
—Christina Rogers
AT&T
Video Service Fails
To Offset Other Lines
AT&T Inc.’s quarterly revenue
declined as growth in the company’s streaming video service
wasn’t enough to offset losses
of more profitable wireless and
satellite accounts.
The streaming DirecTV Now
service added 312,000 subscribers to reach nearly 1.5 million in
the first quarter. That covered
188,000 satellite-TV customers it
lost, though the shift to the lowprice service pressured results.
Under new accounting rules,
first-quarter revenue totaled
$38.04 billion, compared with
$39.37 billion in the year-ago
quarter. On a comparable basis,
revenue fell 1.1% to $38.9 billion.
Overall profit reached $4.7 billion, or 75 cents a share, compared with $3.5 billion, or 56
cents a share, a year earlier.
—Austen Hufford
and Drew FitzGerald
Up to $1 Billion in Value
of
Shares of its Common Stock
At a Cash Purchase Price Not Greater than $170.00 per Share
Nor Less than $150.00 per Share
Whirlpool Corporation, a Delaware corporation (the “Company”), is offering to purchase up to $1 billion in value of shares of its common stock, $1.00 par value per share
(the “Shares”), at a price not greater than $170.00 nor less than $150.00 per Share, to the seller in cash, less any applicable withholding taxes and without interest, upon the terms
and subject to the conditions described in the Offer to Purchase, dated April 26, 2018 (the “Offer to Purchase”), and the related Letter of Transmittal (the “Letter of Transmittal”)
(which together, as they may be amended and supplemented from time to time, constitute the “Offer”).
THE OFFER, PRORATION PERIOD AND WITHDRAWAL RIGHTS WILL EXPIRE AT ONE MINUTE
AFTER 11:59 P.M., NEW YORK CITY TIME, ON MAY 23, 2018, UNLESS THE OFFER IS EXTENDED
(SUCH DATE AND TIME, AS THEY MAY BE EXTENDED, THE “EXPIRATION DATE”).
The Offer is not conditioned on the receipt of financing or any minimum number of Shares being tendered. The Offer is, however, subject to other conditions as set forth
in the Offer to Purchase.
Upon the terms and subject to the conditions of the Offer, which will be conducted through a modified “Dutch auction” process, the Company will determine a single per
Share purchase price, not greater than $170.00 nor less than $150.00 per Share, to the seller in cash, less any applicable withholding taxes and without interest, that the Company
will pay for Shares properly tendered and not properly withdrawn in the Offer, taking into account the total number of Shares tendered and the prices specified, or deemed
specified, by tendering stockholders. The Company will select the single lowest purchase price (in multiples of $0.50) within the price range specified above that will allow it
to purchase up to $1 billion in value of Shares. Upon the terms and subject to the conditions of the Offer, if, based on the purchase price determined by the Company, Shares
having an aggregate value of less than $1 billion are properly tendered and not properly withdrawn, the Company will select the lowest price that will allow the Company to buy
all the Shares that are properly tendered and not properly withdrawn before the Offer expires. All Shares the Company purchases in the Offer will be acquired at the same purchase
price regardless of whether any stockholder tenders at a lower price. Only Shares properly tendered at prices at or below the purchase price selected by the Company and not
properly withdrawn will be purchased. However, because of the “odd lot” priority, proration and conditional tender provisions described in the Offer to Purchase, the Company
may not purchase all of the Shares tendered at or below the purchase price if, based on the purchase price determined by the Company, more than $1 billion in value of Shares
are properly tendered and not properly withdrawn. If any properly tendered Shares are not purchased under the Offer or are properly withdrawn before the Expiration Date, or
if less than all Shares evidenced by a stockholder’s certificate(s) are tendered, the Company will credit the certificates to book-entry for unpurchased Shares promptly after the
expiration or termination of the Offer.
The Company reserves the right, in its sole discretion, to change the per Share purchase price range and to increase or decrease the value of Shares sought in the Offer, subject
to applicable law. In accordance with the rules of the Securities and Exchange Commission, the Company may increase the number of Shares accepted for payment in the Offer
by no more than 2% of the outstanding Shares without extending the Offer.
As of April 24, 2018, there were 70,795,312 Shares issued and outstanding. At the maximum purchase price of $170.00 per Share, the Company could purchase 5,882,352
Shares if the Offer is fully subscribed, which would represent approximately 8.31% of the issued and outstanding Shares as of April 24, 2018. At the minimum purchase price
of $150.00 per Share, the Company could purchase 6,666,666 Shares if the Offer is fully subscribed, which would represent approximately 9.42% of the issued and outstanding
Shares as of April 24, 2018. The Shares are listed and traded on the New York Stock Exchange and the Chicago Stock Exchange under the symbol “WHR.” Stockholders are
urged to obtain current market quotations for the Shares before deciding whether and at what purchase price or purchase prices to tender their Shares.
The Company expressly reserves the right, in its sole discretion, at any time and from time to time, to extend the period of time during which the Offer is open and thereby
delay acceptance for payment of, and payment for, any Shares by giving oral or written notice of such extension to Computershare Trust Company N.A., the depositary for the
Offer (the “Depositary”), and making a public announcement of such extension not later than 9:00 a.m., New York City time, on the first business day after the previously
scheduled Expiration Date.
The Offer will expire at one minute after 11:59 p.m., New York City time, on Wednesday, May 23, 2018, unless the Company exercises its right, in its sole discretion, to
extend the period of time during which the Offer will remain open. Beneficial owners should be aware that their broker, dealer, commercial bank, trust company or other
nominee may establish its own earlier deadlines for participation in the Offer. Accordingly, beneficial owners wishing to participate in the Offer should contact their broker, dealer,
commercial bank, trust company or other nominee as soon as possible in order to determine the times by which such owner must take action in order to participate in the Offer.
In accordance with the instructions to the Letter of Transmittal, stockholders wishing to tender Shares must specify the price or prices, not greater than $170.00 nor less
than $150.00 per Share, at which they are willing to sell their Shares to the Company in the Offer. Alternatively, each stockholder desiring to tender Shares can choose not to
specify a price and, instead, elect to tender their Shares at the purchase price ultimately paid for Shares properly tendered and not properly withdrawn in the Offer. If a stockholder
agrees to accept the purchase price determined in the Offer, its Shares will be deemed to be tendered at the minimum price of $150.00 per Share, which could result in the
tendering stockholder receiving the minimum price of $150.00 per Share. See the Offer to Purchase for recent market prices for the Shares.
Stockholders wishing to tender Shares must follow the procedures set forth in the Offer to Purchase and in the related Letter of Transmittal. Generally, for Shares to be
properly tendered pursuant to the Offer, the certificates for such Shares (or confirmation of receipt of such Shares pursuant to the procedure for book-entry transfer set forth in
the Offer to Purchase), together with a properly completed and duly executed Letter of Transmittal, including any required signature guarantees, or an “Agent’s Message” (as
defined in the Offer to Purchase), and any other documents required by the Letter of Transmittal, must be received before one minute after 11:59 p.m., New York City time, on
Wednesday, May 23, 2018 (or the earlier deadline with respect to Shares held within the 401(k) Plan (as defined in the Offer to Purchase)) by the Depositary at one of its
addresses set forth on the back cover of the Offer to Purchase.
Upon the terms and subject to the conditions of the Offer, if, based on the purchase price determined by the Company, Shares having an aggregate value in excess of $1
billion (or such greater amount as the Company may elect to pay, subject to applicable law) are properly tendered at or below the purchase price and not properly withdrawn
prior to the Expiration Date, the Company will purchase Shares as follows:
• first, all Odd Lots (as defined in the Offer to Purchase) of less than 100 Shares at the Final Purchase Price (as defined in the Offer to Purchase) from stockholders who
properly tender all of their Shares at or below the Final Purchase Price and who do not properly withdraw them before the Expiration Date (tenders of less than all of the
Shares owned, beneficially or of record, by such Odd Lot Holder (as defined in the Offer to Purchase) will not qualify for this preference);
• second, after purchasing all the Odd Lots that were validly tendered at or below the Purchase Price, subject to the conditional tender provisions (whereby a holder may
specify a minimum number of such holder’s Shares that must be purchased if any such Shares are purchased), the Company will purchase all Shares properly tendered at
or below the Final Purchase Price on a pro rata basis with appropriate adjustment to avoid purchases of fractional Shares; and
• third, only if necessary to permit the Company to purchase $1 billion in value of Shares (or such greater amount as the Company may elect to pay, subject to applicable
law), the Company will purchase Shares conditionally tendered (for which the condition was not initially satisfied) at or below the Final Purchase Price, by random lot,
to the extent feasible. To be eligible for purchase by random lot, stockholders whose Shares are conditionally tendered must have tendered all of their Shares. Random
lot selection would be facilitated by the Company.
For purposes of the Offer, the Company will be deemed to have accepted for payment (and therefore purchased), subject to proration, and conditional tender provisions of
the Offer, Shares that are properly tendered at or below the purchase price selected by the Company and not properly withdrawn only when, as and if the Company gives oral or
written notice to the Depositary of the Company’s acceptance of the Shares for payment pursuant to the Offer.
Upon the terms and subject to the conditions of the Offer, the Company will accept for payment and pay the per Share purchase price for all of the Shares accepted for payment
pursuant to the Offer promptly after the Expiration Date. In all cases, payment for Shares tendered and accepted for payment pursuant to the Offer will be made promptly, subject
to possible delay in the event of proration, but only after timely receipt by the Depositary of: (i) certificates for Shares or a timely book-entry confirmation of the deposit of Shares
into the Depositary’s account at the Book-Entry Transfer Facility (as defined in the Offer to Purchase); (ii) a properly completed and duly executed Letter of Transmittal, including
any required signature guarantee (or, in the case of a book-entry transfer, an Agent’s Message (as defined in the Offer to Purchase)); and (iii) any other required documents.
Because of the difficulty in determining the number of Shares properly tendered and not properly withdrawn, and because of the proration and conditional tender provisions
described in the Offer to Purchase, the Company expects that it will not be able to announce the final proration factor or commence payment for any Shares purchased pursuant
to the Offer until after the Expiration Date. The preliminary results of any proration will be announced by press release as promptly as practicable after the Expiration Date.
Tenders of Shares are irrevocable, except that such Shares may be withdrawn at any time prior to the Expiration Date and, unless such Shares have been accepted for
payment as provided in the Offer, stockholders may also withdraw their previously tendered Shares at any time after one minute after 11:59 p.m., New York City time, on June
21, 2018. For a withdrawal to be effective, a written notice of withdrawal must be received in a timely manner by the Depositary at one of its addresses listed on the back cover
of the Offer to Purchase. Any such notice of withdrawal must specify the name of the person having tendered the Shares to be withdrawn, the number of Shares to be withdrawn
and the name of the registered holder of the Shares to be withdrawn, if different from the name of the person who tendered the Shares. If certificates for Shares have been delivered
or otherwise identified to the Depositary, then, prior to the physical release of those certificates, the serial numbers shown on those certificates must be submitted to the Depositary
and, unless an Eligible Institution (as defined in the Offer to Purchase) has tendered those Shares, an Eligible Institution must guarantee the signatures on the notice of withdrawal.
If a stockholder has used more than one Letter of Transmittal or has otherwise tendered Shares in more than one group of Shares, the stockholder may withdraw Shares using
either separate notices of withdrawal or a combined notice of withdrawal, so long as the information specified above is included. If Shares have been delivered in accordance
with the procedures for book-entry transfer described in the Offer to Purchase, any notice of withdrawal must also specify the name and number of the account at the Book-Entry
Transfer Facility to be credited with the withdrawn Shares and otherwise comply with the Book-Entry Transfer Facility’s procedures.
The Company will decide, in its sole discretion, all questions as to the form and validity, including time of receipt, of notices of withdrawal, and each such decision will be
final and binding on all parties absent a finding to the contrary by a court of competent jurisdiction. None of the Company, its Board of Directors, Citigroup Global Markets
Inc., J.P. Morgan Securities LLC (together, with Citigroup Global Markets Inc., the “Dealer Managers”), Computershare Trust Company, N.A., as the Depositary, D.F. King &
Co., Inc., as the information agent (the “Information Agent”), or any other person will be under any duty to give notification of any defects or irregularities in any notice of
withdrawal or incur any liability for failure to give any such notification.
Based on our confidence in the long-term outlook for our business, enhanced by the recently announced pending sale of our Embraco compressor business, and consistent
with our balanced approach to capital allocation, we have determined to use up to $1 billion of cash to repurchase Shares in this Offer.
The Company is making the Offer because we believe that the modified Dutch auction tender offer set forth in the Offer to Purchase represents an efficient mechanism to
provide all of the Company’s stockholders with the opportunity to tender all or a portion of their Shares and, thereby, receive a return of some or all of their investment if they
so elect. In addition, if the Company completes the Offer, stockholders who do not participate in the Offer will automatically increase their relative percentage ownership interest
in the Company and its future operations.
The Offer also provides stockholders with an efficient way to sell their Shares without incurring broker’s fees or commissions associated with open market sales.
Generally, if you are a U.S. Holder (as defined in the Offer to Purchase), your receipt of cash from us in exchange for the Shares you tender will be a taxable transaction
for United States federal income tax purposes. The cash you receive for your tendered Shares will generally be treated for United States federal income tax purposes either as
consideration received in respect of a sale or exchange of the Shares purchased by us or as a distribution from us in respect of Shares. We urge you to consult your own tax advisor
as to the particular tax consequences to you of the Offer. If you are a non-U.S. Holder (as defined in the Offer to Purchase), because it is unclear whether the cash you receive
in connection with the Offer will be treated (i) as proceeds of a sale or exchange or (ii) as a distribution, the Depositary or other applicable withholding agent may treat such
payment as a dividend distribution for withholding purposes. Accordingly, if you are a non-U.S. Holder, you may be subject to withholding on payments to you at a rate of 30%
of the gross proceeds paid, unless you establish an entitlement to a reduced rate of withholding by timely completing, under penalties of perjury, the applicable Form W-8. NonU.S. Holders are urged to consult their tax advisors regarding the application of United States federal income tax withholding and backup withholding, including eligibility for
a withholding tax reduction or exemption and the refund procedure. All stockholders should read carefully the Offer to Purchase, in particular Section 3 and Section 13, for
additional information regarding the United States federal income tax consequences of participating the Offer and should consult their financial and tax advisors.
The Company’s Board of Directors has authorized us to make the Offer. However, none of the Company, the members of its Board of Directors, the Dealer
Managers, the Depositary or the Information Agent makes any recommendation to any stockholder as to whether to tender or refrain from tendering any Shares or
as to the price or prices at which stockholders may choose to tender their Shares. None of the Company, the members of its Board of Directors, the Dealer Managers,
the Depositary or the Information Agent has authorized any person to make any recommendation with respect to the Offer. Stockholders should carefully evaluate
all information in the Offer to Purchase and in the related Letter of Transmittal and should consult their own financial and tax advisors. Stockholders must decide
whether to tender their Shares and, if so, how many Shares to tender and the price or prices at which a stockholder will tender. In doing so, a stockholder should read
carefully the information in the Offer to Purchase and in the related Letter of Transmittal before making any decision with respect to the Offer.
On April 16, 2018, the Board of Directors declared a quarterly cash dividend of $1.15 per Share, to be paid on June 15, 2018 to each stockholder of record as of the close
of business on May 18, 2018. The dividend will be paid regardless of whether such stockholder tenders its Shares in the Offer.
The information required to be disclosed by Rule 13e-4(d)(1) of the Securities Exchange Act of 1934, as amended, is contained in the Offer to Purchase and is incorporated
herein by reference. The Company is also filing with the Securities and Exchange Commission an Issuer Tender Offer Statement on Schedule TO, which includes certain
additional information relating to the Offer.
Copies of the Offer to Purchase and the related Letter of Transmittal are being mailed to all holders of the Shares, including brokers, dealers, commercial banks and trust
companies whose names, or the names of whose nominees, appear on the Company’s stockholder list or, if applicable, who are listed as participants in a clearing agency’s
security position listing for subsequent transmittal to beneficial owners of Shares, as reflected on the records of the transfer agent. The Offer is explained in detail in those materials.
Questions or requests for assistance may be directed to the Information Agent or the Dealer Managers, at their respective addresses and telephone numbers set forth below.
Copies of the Offer to Purchase, the Letter of Transmittal and other related materials will be furnished promptly by the Information Agent at the Company’s expense. Stockholders
may also contact their broker, dealer, commercial bank, trust company or other nominee for assistance concerning the Offer.
The Information Agent for the Offer is:
D.F. King & Co., Inc.
48 Wall Street, 22nd Floor
New York, New York 10005
Banks & Brokers Call: (212) 269-5550
All Others Call Toll-Free: (800) 334-0384
Email: WHR@dfking.com
The Dealer Managers for the Offer are:
April 26, 2018
Citigroup
J.P. Morgan
Citigroup Global Markets Inc.
388 Greenwich Street
New York, New York 10013
Call toll-free: (877) 531-8365
J.P. Morgan Securities LLC
383 Madison Avenue
New York, New York 10179
Call toll-free: (877) 371-5947
.
B6 | Thursday, April 26, 2018
THE WALL STREET JOURNAL.
MANAGEMENT
Pressure Tactics Diversify Boards
Mandates in Europe
have pushed firms to
bring more women
into the boardroom
The pressure is on for companies around the world to
put more women on their
boards.
Diversity advocates have
been making a business case
for women in high-ranking
roles for years.
Now blunt-force measures,
rather than financial arguments, appear to be moving
the needle.
The U.S., once the leader in
female directors, is lagging behind Europe where mandates
have forced corporations to
boost the ratio of women
holding board seats.
In Italy, Germany and several other European nations,
the number of women on big
company boards has tripled
and, in some cases, quadrupled in recent years, according
to a new report by the Corporate Women Directors International, a research and advocacy group.
France passed a law in 2011
requiring that blue-chip firms
fill at least 40% of board seats
with women and gave them six
years to meet the requirement. In that time, the share
of directors at the country’s
biggest companies more than
doubled to 43% of board representation, CWDI data show.
Sophie Bellon, chairwoman
of Sodexo SA—a French food
and facilities services firm
founded by her father, Pierre
Bellon—also joined the board
of cosmetics giant L’Oréal SA
in 2015. She says quotas are
prodding companies to develop more rigorous processes
for recruiting new directors.
“There is more energy and
more thought put into how
people are chosen, what kind
of talent or skills companies
want,” she said.
The European mandates,
however, so far appear to have
WALDO SWIEGERS/BLOOMBERG NEWS
BY VANESSA FUHRMANS
Proponents of the European quotas hope to see more women in management. A L’Oréal laboratory.
done little to increase the
overall number of women in
management—an
outcome
that proponents of the quota
system hope it will achieve.
In Norway, the first European country to set a 40%
quota for women on corporate
boards more than a decade ago,
only 15 of the country’s 200
biggest companies have a female CEO, according to Norwegian government data—roughly
the same number as in the U.S.
Other countries have had just a
few years’ experience with the
boardroom quotas.
In the U.K., a governmentbacked, business-led commission is urging major British
firms to fill at least one-third
of all board seats with women
by 2020, and it publishes an
annual list of worst and best
performers on that measure.
Today women make up 26% of
major-company board seats
there.
In the U.S., several institutional investors, including
State Street Global Advisors
and state pension funds in
Massachusetts, California and
New York, are prodding companies to diversify, threatening to vote against certain
board members at firms lacking female directors.
Boardroom Evolution
External pressure is putting
more women on boards of
directors.
Women board directors in
Fortune Global 200 Companies
0% 10 20 30 40 50
2004
2018
France*
Italy*
Germany*
Switzerland†
U.S.
U.K.**
Netherlands‡
Japan
China
Brazil
South Korea
0% unchanged
*Quota for women-held board seats †Quota
for women-held seats at state-owned firms
‡Nonbinding quota for women-held board seats
**Commission-recommended target for
women-held board seats
Source: Corporate Women
Directors International
THE WALL STREET JOURNAL.
Among other benefits, they
argue that a growing body of
research links a greater number
of women in the boardroom
with stronger, long-term financial performance, while boards
Wade Spann
with no women tend to suffer
more corporate governance-related scandals than average.
Studies from consultants,
banks and investment research
firms, including McKinsey &
Co., Credit Suisse, Catalyst
and MSCI, bear out the correlations. Detractors of those reports counter that it is difficult to prove female directors
are the true cause underpinning more positive outcomes.
BlackRock Inc., the world’s
largest money manager, said
earlier this year that companies in which it invests should
have at least two female directors. New York State Common
Retirement Fund said last
month it would oppose the reelection of directors on hundreds of U.S. corporate boards
with no women.
Such efforts appear to be
quickening the pace of change,
albeit not as fast as across the
Atlantic.
In the first quarter, women
accounted for 32% of all new
board seats at Russell 3000
companies—which represent
the majority of U.S.-traded
stocks—up from 29.4% for all
of last year and 21.4% in 2016,
according to Equilar, a research firm that gathers data
on executives and boards.
“The institutional investors
are definitely having an impact,” said Beth Stewart, whose
firm Trewstar Corporate Board
Services specializes in placing
qualified women on boards.
In the first three months of
the year, Ms. Stewart said she
placed more women on previously all-male boards than she
did in all of 2017. The common
refrain she hears: “We’ve gotten enough letters. We’ve had
enough pressure. We’re doing
something about it.”
Even people pushing for
greater boardroom diversity
balk at the idea of a U.S. mandate like those in parts of Europe.
Rakhi Kumar, a senior managing director at State Street,
said rushing companies to
comply with a quota could create new problems. “You don’t
want to create unintended
practices,” she said.
Instead, she said investor
efforts like State Street’s were
prompting real change. In the
past year, State Street has put
on notice more than 700 companies in the U.S., U.K. and
Australia with no women on
their boards.
Sophie Bellon,
who is
chairwoman of
Sodexo, also is
on the board
of cosmetics
giant L’Oréal.
Ultimately, it voted against
certain directors at more than
500 firms that it said failed to
show progress in boardroom diversity. But 152 companies it
contacted have since recruited
at least one female director, and
34 more have pledged to do so.
Despite the recent uptick,
the share of women on S&P
500 company boards rose 1
percentage point last year to
22%, according to Spencer Stuart, an executive recruitment
firm. It said one big reason is
the lack of boardroom turnover: The average director
stays on more than eight years.
GE Chief’s
Goal: ‘Fix
Business’
BY THOMAS GRYTA
IMPERIAL, PA.—General
Electric Co. Chief Executive
John Flannery told shareholders he was “keenly aware” of
the pain caused by a dividend
cut and the troubles of the
past year, and said the best
way to make amends was to
“fix the business.”
GE shareholders gathered
Wednesday at a company facility here and elected a
smaller, revamped board after
a difficult year at the industrial conglomerate. Several investors stood up to voice their
concerns about the company’s
direction and leadership. The
share price has tumbled more
than 50% to $14.
“2017 has been immensely
disappointing to those of us
on the board, the GE leadership team, employees across
the business,” said Mr. Flannery, a company veteran who
took the reins in August and is
working to turn around the
maker of everything from jet
engines to lightbulbs.
“I strongly feel we have
very, very good businesses
that need to be the center of
gravity of the company going
forward,” Mr. Flannery told
the crowd. “It is a lot of
change. Change is not easy in
any organization…the company is going to come out
stronger.”
A year ago, the company
was worth more than twice its
current value and former CEO
Jeff Immelt was pushing GE as
a “digital industrial” company.
Now, Mr. Flannery is selling
assets and considering new
structures for the company,
including breaking apart its
major divisions.
Some shareholders used the
gathering to express their frustration. Several unions and a
group of retiree advocates protested outside, including workers from the company’s Erie,
Pa., locomotive plant and other
operations in the Northeast.
Tips From Wall Street Women
BY LIZ HOFFMAN
Stephanie Cohen is used to
the reaction. The petite 41year-old has spent the past
two decades at Goldman
Sachs Group running big
deals for industrial companies
and private-equity firms.
“I walk into a boardroom
and I'm not who they expect
to see,” she said. But that can
be an advantage, she said. The
client “will always remember
what you said.”
Ms. Cohen was speaking at
The Wall Street Journal's
Women in Finance event Monday night, along with Sandra
Horbach, who runs the U.S. buyouts business for Carlyle
Group, and Eileen Nugent,
global head of M&A for law
firm Skadden, Arps, Slate,
Meagher & Flom LLP. The
women discussed their careers
and stumbling blocks in harddriving, male-dominated fields.
Over the past year, accusations of sexual harassment and
assault have toppled dozens of
powerful men and sparked a
national conversation about
women’s role in the workplace.
Few industries are as dominated by men as finance.
Today 15% of Goldman's 450
or so partners are women—up
from 4% in 1996, but hardly approaching parity. Ms. Cohen,
who was promoted last year to
be Goldman’s head of strategy,
is one of few woman with an
office in the firm’s 41st-floor
executive suite.
There is a lot of “implicit
bias” that keeps women from
landing big assignments and
leadership roles, said Ms. Nugent, who began her career in
the 1980s go-go hostile M&A
boom. “But trust me, once upon
a time it was actual outspoken,
out-there bias,” she said.
External forces are pushing
financial-services firms to be
more diverse. Big companies
including Facebook Inc. are
requiring advisers working on
their matters to have more
women and minorities. And investors are using their heft to
vote against companies whose
boards aren't diverse enough.
“This isn’t philanthropy,”
Ms. Cohen said. “It’s about
what’s right for the business,
one, because it will make us
better, but also because this is
what our clients want.”
One way to get more women
in seats, Ms. Horbach said, is to
mandate it. Carlyle began requiring half of incoming classes
be women or minorities, overruling hiring managers who had
complained they couldn’t find
enough qualified candidates.
“When you took away their
ability to hire a white man…all
of a sudden they found great
diverse candidates,” she said.
“The pool is out there.”
Ms. Horbach said Carlyle’s
entire incoming class of senior
associates—new M.B.A.s recruited from business schools,
rather than from investmentbank trainee programs—are
women.
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
April 25, 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
March index
level
Chg From (%)
Feb. '18March '17
U.S. consumer price index
249.554
256.610
All items
Core
0.23
0.32
2.4
2.1
International rates
Latest
“My victory was admitting I had a traumatic brain injury and
getting help.” While on patrol in Iraq, Wade’s Humvee struck an
IED. With DAV, he’s found the support he needs to overcome his
injuries. DAV helps veterans get the benefits they’ve earned—
helping more than a million veterans each year in life-changing
ways. Support more victories for veterans. Go to DAV.org.
Week
ago
52-Week
High
Low
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.25
1.50
2.18
0.76
Overnight repurchase
1.79
U.S.
1.76
1.680 1.630 1.720 0.695
1.830 1.760 1.830 0.820
1.985 1.945 1.985 0.955
4 weeks
13 weeks
26 weeks
Secondary market
30-year mortgage yields
30 days
60 days
4.75 4.75 4.75 4.00
3.45 3.45 3.45 2.70
1.475 1.475 1.475 1.475
Policy Rates
Euro zone
Switzerland
Britain
Australia
Treasury bill auction
Fannie Mae
Prime rates
U.S.
Canada
Japan
—52-WEEK—
High Low
U.S. government rates
Other short-term rates
Week
ago
2.51925 2.50313 2.51925 1.39906
2.77188 2.74750 2.77188 1.69511
Six month
One year
Euro Libor
-0.402
-0.364
-0.321
-0.244
One month
Three month
Six month
One year
-0.371
-0.328
-0.270
-0.189
One month
Three month
Six month
One year
52-Week
high
low
3.50
Latest
3.50
3.50
2.75
Treasury
MBS
-0.396
-0.361
-0.259
-0.138
-0.420
-0.389
-0.339
-0.263
-0.371
-0.328
-0.271
-0.189
Value
Traded
-0.366
-0.325
-0.248
-0.121
-0.374
-0.332
-0.279
-0.194
52-Week
High
Low
2.26
2.22
2.31
1.01
Libor
1.89988 1.89707 1.89988 0.98856
2.36561 2.35866 2.36561 1.16956
1.756 31.750 2.068 0.791
1.775 117.676 1.971 0.794
Open Implied
Settle Change Interest Rate
Commercial paper (AA financial)
One month
Three month
-0.402
-0.365
-0.324
-0.246
DTCC GCF Repo Index
Call money
90 days
—52-WEEK—
High Low
Euro interbank offered rate (Euribor)
4.275 4.070 4.275 3.253
4.304 4.102 4.304 3.281
Latest
Week
Latest ago
DTCC GCF Repo Index Futures
Treasury Apr
Treasury May
Treasury Jun
98.185 unch. 5665 1.815
98.200 0.005 1043 1.800
98.055 unch. 675 1.945
Discount
2.25
2.25
2.25
1.50
1.7100
1.9000
1.6500
1.6800
1.7100
1.7200
1.9000
1.7100
1.7000
1.7200
0.8600
1.0625
0.7000
0.8200
0.8300
Federal funds
Effective rate
High
Low
Bid
Offer
1.7200
1.9000
1.6500
1.6800
1.7100
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; Discount rate is effective March 22, 2018. DTCC GCF Repo Index is Depository
Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in
billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the
DTCC GCF Repo Index are traded on NYSE Liffe US.
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
Tullett Prebon Information, Ltd.
.
THE WALL STREET JOURNAL.
Thursday, April 26, 2018 | B7
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
24083.83 s 59.70, or 0.25%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 24.31 20.91
P/E estimate *
16.45 17.60
Dividend yield
2.21
2.33
All-time high 26616.71, 01/26/18
Current divisor 0.14523396877348
Session high
Year ago
Trailing P/E ratio * 24.98 24.39
P/E estimate *
17.02 18.24
Dividend yield
1.95
1.98
All-time high 2872.87, 01/26/18
Nasdaq Composite Index
Last Year ago
7003.74 t 3.61, or 0.05%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 25.75
26.01
P/E estimate *
20.03
20.37
Dividend yield
1.04
1.11
All-time high: 7588.32, 03/12/18
26800
2900
7500
26000
2825
7300
25200
2750
7100
24400
2675
6900
23600
2600
22800
2525
UP
Close
t
DOWN
Session open
Last
2639.40 s 4.84, or 0.18%
High, low, open and close for each
trading day of the past three months.
Open
t
Close
65-day moving average
Session low
65-day moving average
65-day moving average
6700
6500
Bars measure the point change from session's open
2450
22000
Jan.
Feb.
Mar.
Jan.
Apr.
Feb.
Mar.
Apr.
6300
Jan.
Feb.
Mar.
Apr.
*Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Latest
Close
Low
Net chg
% chg
High
52-Week
Low
% chg
% chg
YTD 3-yr. ann.
Dow Jones
Industrial Average
24146.34 23823.08 24083.83
59.70
697.61
694.93
-0.48
27467.63 27143.20 27399.47
718.22
709.30
715.96
31.40
0.52
Utility Average
Total Stock Market
Barron's 400
690.11
Nasdaq Stock Market
Nasdaq Composite
7030.74
Nasdaq 100
6540.76
6926.97
6426.57
7003.74
6513.94
14.8
-2.6
1.04 11373.38
8783.74
14.6
-1.0
5.8
774.47
647.90
-1.5
-3.9
5.1
29630.47 24391.29
757.37
624.99
10.5
11.4
-1.0
0.7
7.3
7.2
0.25
Transportation Avg 10551.04 10369.75 10508.13 108.03
-0.07
0.11
0.07
-3.61
4.89
-0.05
0.08
26616.71 20606.93
7588.32
7131.12
6011.24
5541.09
10.0
1.5
1.8
16.2
17.6
11.2
12.8
S&P
500 Index
2645.30
2612.67
2639.40
4.84
0.18
2872.87
2357.03
10.6
-1.3
7.6
MidCap 400
SmallCap 600
1895.85
958.78
1873.11
949.80
1888.01
955.03
1.19
-2.34
0.06
-0.24
1995.23
979.57
1691.67
817.25
8.0
10.7
-0.7
2.0
7.2
9.6
Other Indexes
Russell 2000
1556.09
1539.95
1550.47
-2.81
-0.18
1610.71
1355.89
9.2
1.0
6.9
12539.59 12408.78 12517.86
3.87
0.03
13637.02 11423.53
8.0
-2.3
3.8
0.39
0.07
4.4
-1.8
2.0
NYSE Composite
553.62
Value Line
548.10
552.20
NYSE Arca Biotech
4503.97
4424.32
NYSE Arca Pharma
523.09
518.82
523.04
-1.70
KBW Bank
108.63
106.62
-0.05
PHLX§ Gold/Silver
107.87
83.24
81.98
PHLX§ Oil Service
82.47
156.46
152.20
156.01
1253.69
19.84
1223.09
17.75
1242.19
17.84
PHLX§ Semiconductor
Cboe Volatility
4436.70 -41.92 -0.94
-0.32
-0.05
-0.81 -0.97
2.23
1.45
-0.12
-1.47
-0.18 -1.00
Nasdaq PHLX
Region/Country Index
Close
Volume, Advancers, Decliners
Net chg
–15.07
–1.46
–2.29
Americas
Brazil
Canada
Mexico
Chile
DJ Americas
633.70
Sao Paulo Bovespa 85044.39
S&P/TSX Comp
15509.75
S&P/BMV IPC
48058.21
Santiago IPSA
4248.69
0.47
–424.69
32.75
11.41
–6.89
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
OMX Stockholm
Swiss Market
BIST 100
FTSE 100
FTSE 250
Latest
% chg
YTD
% chg
–1.2
–1.2
–1.3
–0.49
–0.37
–0.86
0.07
–0.16
–1.3
11.3
–4.3
–2.6
0.9
–0.77
380.17
–2.94
385.15
–3.16 –0.81
3893.07
–38.52 –0.98
875.12
–9.94 –1.12
–0.57
5413.30
–30.86
12422.30 –128.52 –1.02
1459.83
–20.87 –1.41
23801.20 –234.29 –0.97
551.73
–4.71 –0.85
1137.62
–16.21 –1.40
56987.19 –688.02 –1.19
–0.26
9858.00
–25.40
571.46
–5.22 –0.91
8740.96
–0.64
–55.95
107401.38 –2657.24 –2.41
7379.32
–0.62
–46.08
20019.08 –176.23 –0.87
–2.3
–0.1
–2.1
–5.6
1.9
–3.8
–3.3
8.9
1.3
–1.5
–4.2
–1.9
0.5
–6.8
–6.9
–4.0
–3.4
S&P/ASX 200
5921.60
Shanghai Composite 3117.97
Hang Seng
30328.15
S&P BSE Sensex
34501.27
Nikkei Stock Avg
22215.32
Straits Times
3568.01
Kospi
2448.81
TAIEX
10559.97
SET
1779.52
…
–10.95
–308.09
–115.37
–62.80
–16.55
–15.33
–19.53
–8.68
–0.50
0.21
0.02
Closed
–2.4
–5.7
1.4
1.3
–2.4
4.9
–0.8
–0.8
1.5
–0.35
–1.01
–0.33
–0.28
–0.46
–0.62
–0.18
–0.49
Sources: SIX Financial Information; WSJ Market Data Group
Company
Volume
(000)
Symbol
Last
Net chg
After Hours
% chg
High
Low
SPDR S&P 500
SPY
16,844.9 264.89
1.26
0.48 265.03 262.61
Facebook Cl A
FB
10,259.2 171.45
11.76
7.36 172.11 158.60
General Electric
GE
5,744.5
14.11
0.06
0.43
14.13
14.00
Ford Motor
F
4,113.6
11.40
0.29
2.61
11.46
11.04
Bank of America
BAC
2,826.7
30.24
0.10
0.33
30.25
30.08
iShares Russell 2000 ETF IWM
2,567.0 154.72
0.52
0.34 154.78 154.03
T
AT&T
PwrShrs QQQ Tr Series 1 QQQ
2,271.1
33.62
-1.58
2,256.9 160.55
1.90
1.20 160.70 158.63
35.25
266.2 254.10
26.43
11.61 261.00 226.01
-4.49
33.57
Percentage gainers…
O'Reilly Automotive
ORLY
Ultra Clean Holdings
UCTT
Facebook Cl A
FB
Xilinx
XLNX
119.7
67.10
3.46
Align Technology
ALGN
143.9 258.00
12.37
76.0
17.64
1.81
10,259.2 171.45
11.76
17.65
11.43
15.81
7.36 172.11 158.60
69.04
5.44
63.30
5.04 263.03 244.04
4939.86
3507.64
22.9
5.1
2.7
593.12
508.06
2.9
-4.0
-3.9
...And losers
116.52
88.87
16.2
1.1
14.0
Briggs Stratton
BGG
58.3
17.55
-2.16
-10.96
19.75
93.26
76.42
-1.0
-3.3
5.6
Avon Products
AVP
91.0
2.45
-0.19
-7.03
2.72
2.45
165.78
117.79
-1.9
4.3
-9.7
eBay
EBAY
784.8
39.11
-1.86
-4.54
41.70
38.00
1445.90
37.32
1004.62
9.14
23.1
64.4
-0.9
61.6
21.4
13.2
AT&T
T
2,271.1
33.62
-1.58
-4.49
35.25
33.57
VS 2x VIX Short Term
TVIX
886.5
7.80
-0.35
-4.29
8.17
7.76
17.55
Company
Symbol
Vicor
AGM Group Holdings
Travelzoo
Intrepid Potash
China Customer Relations
VICR
Genprex
Scorpio Tankers
Rocky Brands
Resonant Inc.
Americas Silver
GNPX
USANA Health Sciences
Supervalu
MiMedx Group
K12
Atomera
USNA
Latest Session
Close Net chg % chg
High
52-Week
Low
% chg
U.S. consumer rates
Selected rates
A consumer rate against its
benchmark over the past year
New car loan
26.84
25.56
24.70
19.24
18.73
37.45 16.30
14.99 5.01
11.25 5.75
5.12 1.58
23.40 10.75
100.0
...
5.4
150.5
20.9
Erin Energy
trivago ADR
ACADIA Pharmaceuticals
HFF A
Mercury Systems
ERN
5.89
2.70
23.85
4.14
4.22
0.91
0.33
2.85
0.46
0.46
18.28
13.92
13.57
12.50
12.23
6.23 3.84
4.60 1.85
24.00 12.20
8.55 3.17
5.04 2.50
...
-34.3
71.3
-13.0
38.8
InVivo Therapeutics Hldgs
Magellan Health
Teradyne
Cocrystal Pharma
LendingClub
NVIV
106.85 10.80
SVU
16.24 1.63
MDXG
8.24 0.81
LRN
15.36 1.49
ATOM
4.95 0.46
11.24
11.16
10.90
10.74
10.24
110.30 52.55
29.82 13.60
18.25 6.05
21.18 12.72
8.00 2.45
91.1
-44.1
-25.8
-24.8
-18.2
Check-Cap
InfoSonics
Bright Scholar Educ ADR
Forterra
Inphi
CHEK
TZOO
IPI
CCRC
STNG
RCKY
RESN
USAS
Most Active Stocks
Company
Symbol
General Electric
Twitter
SPDR S&P 500
Advanced Micro Devices
iShares MSCI Emg Markets
GE
Neovasc
Bank of America
VS 2x VIX Short Term
Finl Select Sector SPDR
PwrShrs QQQ Tr Series 1
NVCN
Volume % chg from Latest Session
(000) 65-day avg Close % chg
104,393
91,959
86,788
76,758
67,963
TWTR
SPY
AMD
EEM
TVIX
XLF
QQQ
52-Week
High
Low
Elmira Savings Bank
Elmira, NY
2.75%
607-734-3374
3.00
Farmers State Bank
Waterloo, IA
2.90%
877-FSB-1879
t
2.50
M J J A S O ND J FMA
2017
2018
Easthampton Savings Bank
2.99%
Easthampton, MA
413-527-4111
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
2.36
2.37
Money market, annual yield
0.36
0.36
Five-year CD, annual yield
1.68
1.67
30-year mortgage, fixed†
4.43
4.59
15-year mortgage, fixed†
3.91
4.05
Jumbo mortgages, $424,100-plus† 4.86
4.70
Five-year adj mortgage (ARM)† 4.61
4.39
New-car loan, 48-month
3.87
3.83
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.75 l
l
4.00
l
1.17
0.25 l
l
1.29
l
3.73
l
2.99
l
4.21
l
3.22
l
2.85
1.50
4.75
2.37
0.36
1.69
4.59
4.07
4.96
4.61
3.87
1.50
1.50
2.09
0.00
0.23
0.78
0.97
0.77
1.40
0.91
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
One year ago
1
3 6
month(s)
1 2 3 5 710
years
maturity
Nasdaq
NYSE Arca
Total volume*1,983,497,836 246,946,134
Adv. volume* 860,367,712 104,207,922
Decl. volume*1,034,477,156 141,588,513
Issues traded
2,966
1,301
Advances
1,179
535
Declines
1,615
732
Unchanged
172
34
New highs
43
10
New lows
114
85
Closing tick
296
78
Closing Arms†
0.88
0.77
Block trades*
7,946
1,254
* 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.
IPHI
5
1.50
0
0.75
–5
0.00
–10
30
High
52-Week
Low
% chg
-35.00
-26.18
-21.93
-19.37
-18.68
4.00 1.15
24.27 4.71
41.20 14.51
51.74 28.15
55.00 32.18
-22.6
-68.8
-54.8
33.2
-6.7
6.80 -1.39 -16.97
92.70 -18.40 -16.56
34.70 -6.80 -16.39
2.76 -0.49 -15.18
2.77 -0.49 -15.03
102.50 6.80
112.25 67.20
50.68 29.68
6.58 0.17
6.56 2.69
-93.3
29.8
2.8
...
-54.1
-13.45
-13.35
-12.29
-12.18
-11.81
26.40 3.12
26.00 3.68
28.18 10.55
20.47 3.02
46.36 23.65
-50.8
-67.0
...
-60.7
-35.0
1.63
4.71
15.20
38.08
34.91
-0.88
-1.67
-4.27
-9.15
-8.02
12.87
3.88
12.77
7.50
27.71
-2.00
-0.60
-1.79
-1.04
-3.71
Ranked by change from 65-day average*
MMDM
HCAC
KBLM
MPAC
TBX
CHEK
HDMV
IGN
Volume % chg from Latest Session
(000) 65-day avg Close % chg
1,419
2,257
1,898
1,027
373
4779
3539
3485
2681
2235
683
654
2,525
130
246
1779
1698
1407
1327
1318
52-Week
High
Low
24.70
-0.10
0.19
0.37
0.20
11.25
10.24
10.49
9.95
10.02
5.75
9.65
8.97
9.65
9.65
22.46 3.98
29.52 0.24
12.87 -13.45
34.58 -0.09
51.80 -1.16
22.85
29.70
26.40
36.34
55.29
15.81
27.55
3.12
31.29
43.74
9.75
9.95
9.97
9.93
9.85
CURRENCIES & COMMODITIES
Currencies
U.S.-dollar foreign-exchange rates in late New York trading
15%
2.25
Latest Session
Close Net chg % chg
* Common stocks priced at $2 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
10
Euro
US$vs,
YTDchg
Wed
in US$ per US$ (%)
Yen
Vietnam dong
Argentina peso
.0494 20.2475 8.8
Brazil real
.2869 3.4851 5.2
Canada dollar
.7787 1.2843 2.1
Chile peso
.001657 603.60 –1.9
Ecuador US dollar
1
1 unch
Mexico peso
.0531 18.8473 –4.2
Uruguay peso
.03550 28.1700 –2.2
Venezuela b. fuerte .00001566870.0001 646496.1
Europe
WSJ Dollar index
2017
2018
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
2.863
3.026
3.899
3.330
6.104
3.480
2.652
2.746
2.867
3.761
3.230
5.728
3.380
2.537
2.863
3.026
3.899
3.330
6.319
3.480
2.652
1.818
2.058
2.879
2.380
4.948
2.660
1.736
–1.846
–3.865
–0.082
–0.512
2.068
–0.539
0.789
6.258
6.044
6.258
5.279
–0.285
–1.302
1.494
0.706
3.080
0.704
1.667
0.570 4.054
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.7564 1.3221
China yuan
.1581 6.3269
Hong Kong dollar
.1275 7.8449
India rupee
.01494 66.921
Indonesia rupiah .0000718 13929
Japan yen
.009139 109.43
Kazakhstan tenge .003067 326.04
Macau pataca
.1237 8.0834
Malaysia ringgit
.2556 3.9120
New Zealand dollar
.7065 1.4154
Pakistan rupee
.00865 115.600
Philippines peso
.0191 52.283
Singapore dollar
.7527 1.3286
South Korea won .0009240 1082.22
Sri Lanka rupee
.0063408 157.71
Taiwan dollar
.03368 29.692
Thailand baht
.03171 31.540
Commodities
3.2
–2.7
0.4
4.8
3.3
–2.9
–2.0
0.5
–3.7
0.4
4.5
4.6
–0.6
1.4
2.7
0.1
–3.2
US$vs,
YTDchg
Wed
in US$ per US$ (%)
Country/currency
Americas
Asia-Pacific
Corporate Borrowing Rates and Yields
Treasury, Ryan ALM
1417.097
10-yr Treasury, Ryan ALM 1652.331
DJ Corporate
367.264
Aggregate, Barclays Capital 1891.890
High Yield 100, Merrill Lynch 2836.154
Fixed-Rate MBS, Barclays 1944.560
Muni Master, Merrill
513.497
EMBI Global, J.P. Morgan
782.346
FRTA
CHFN
Forex Race
3.00
Close
BEDU
Charter Financial
ProShares Sh 7-10 Yr Tr
Check-Cap
FT Horizon Mgd Vol Dev
iShares NA Tech-Mult
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Bond total return index
IFON
1.89
0.03
33.05 22.07
34.45
4.66
30.33 22.97
175.21 134.86
s
New car loan
3.50
t
t
Prime rate
LC
Symbol
Country/currency
3.75%
Cambridge Savings Bank
2.69%
Cambridge, MA
888-418-5626
COCP
4.2 0.05 -1.27
-17.1 30.14 -0.17
24.9 8.15 1.62
-22.9 27.65 -0.07
-4.4 158.65 0.12
Compare the performance of selected
global stock indexes, bond ETFs,
currencies and commodities at
WSJ.com/TrackTheMarkets
t
TER
Company
Track the Markets
Wednesday
MGLN
TZOO
s
4.00
2.37%
518-436-9043
MRCY
Travelzoo
Modern Media Acquisition
Hennessy Cap III
KBL Merger IV
Matlin Ptrs Acqn Cl A
* Volumes of 100,000 shares or more are rounded to the nearest thousand
3.83%
HF
29.55 12.73
36.80 15.67
286.63 235.43
15.65
9.04
52.08 39.79
14.05
29.75
263.63
9.71
46.30
s
4.50%
TrustCo Bank
Albany, NY
ACAD
-4.29
-2.36
0.25
-3.77
-0.77
23.1
174.1
-27.7
28.0
-12.0
65,518
63,014
60,534
50,963
49,652
BAC
TRVG
Volume Movers
notes and bonds
Bankrate.com avg†:
Symbol
7.85
2.16
1.93
0.76
2.94
Benchmark
Yields
Treasury yield
curve
andtoRates
Yield
maturity of current bills,
Consumer Rates and Returns to Investor
Company
37.10
10.61
9.75
4.71
18.64
AGMH
Total volume* 786,825,399 8,921,050
Adv. volume* 399,035,873 2,807,595
Decl. volume* 378,640,080 5,464,626
Issues traded
3,060
330
Advances
1,288
120
Declines
1,673
185
Unchanged
99
25
New highs
26
4
New lows
166
23
Closing tick
46
20
Closing Arms†
0.77
1.40
Block trades*
6,106
99
Percentage Losers
CREDIT MARKETS
Interest rate
NYSE NYSE Amer.
Most-active issues in late trading
Percentage Gainers...
3049.26
392.36
263.21
The Global Dow
DJ Global Index
DJ Global ex U.S.
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
Thailand
503.24
Trading Diary
Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer.
and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic
trading services, securities dealers and regional exchanges. Minimum
share price of $2 and minimum after-hours volume of 50,000 shares.
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
World
589.69
Late Trading
.00004392
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
22769
0.3
.04776 20.937
.1632 6.1256
1.2161 .8223
.003884 257.44
.009888 101.13
.1254 7.9726
.2876 3.4766
.01602 62.417
.1168 8.5650
1.0173 .9830
.2450 4.0815
.0383 26.1125
1.3930 .7179
–1.6
–1.3
–1.3
–0.6
–2.3
–2.9
–0.1
8.2
4.6
0.9
7.6
–7.2
–3.0
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6524 .3770 –0.02
.0565 17.7055 –0.4
.2785 3.5903 3.2
3.3225 .3010 –0.2
2.5974 .3850 0.01
.2746 3.642 –0.2
.2666 3.7503
...
.0804 12.4397 0.6
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 85.28
Wednesday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
650.06
1.21
200.69
68.05
2.786
1321.20
0.61
0.35
0.005
-10.20
0.41 0.48 –0.81
Sources: Tullett Prebon, WSJ Market Data Group
0.19
% Chg
YTD
% chg
658.32
532.01
16.00
3.95
0.30 202.97
68.64
0.52
3.63
0.18
-0.77 1362.40
166.50
42.53
2.55
1208.60
10.45
37.14
-11.33
4.68
3.52
12.63
-5.66
1.14
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
.
THE WALL STREET JOURNAL.
B8 | Thursday, April 26, 2018
COMMODITIES
Futures Contracts
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
3.1300
3.1300
3.1275
3.1320 –0.0065
April
July
3.1555
3.1770
3.1390
3.1575 –0.0065
Gold (CMX)-100 troy oz.; $ per troy oz.
1324.00 1325.00
1320.00 1321.20 –10.20
April
June
1332.00 1333.80
1320.20 1322.80 –10.20
Aug
1337.80 1339.90
1326.40 1329.00 –10.20
Oct
1337.80 1337.80
1334.00 1335.30 –10.20
Dec
1351.00 1351.20
1339.00 1341.80 –10.20
Dec'19
...
...
... 1381.60 –10.20
Palladium (NYM) - 50 troy oz.; $ per troy oz.
968.20
971.00
951.80
967.50 –4.15
June
Sept
958.00
964.00
948.40
962.80 –4.25
Dec
960.00
960.00
953.65
959.30 –4.25
Platinum (NYM)-50 troy oz.; $ per troy oz.
April
...
...
...
906.60 –22.30
July
933.90
934.90
911.40
912.70 –22.30
Silver (CMX)-5,000 troy oz.; $ per troy oz.
April
16.555
16.555
16.555
16.486 –0.201
July
16.785
16.795
16.550
16.577 –0.210
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
67.75
68.18
67.11
68.05
0.35
June
July
67.65
68.03
66.97
67.92
0.35
Aug
67.25
67.62
66.59
67.53
0.36
Sept
66.74
67.02
66.07
66.98
0.36
Dec
65.06
65.37
64.46
65.34
0.37
Dec'19
58.86
59.16
58.47
59.09
0.19
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
May
2.1297
2.1390
2.1159
2.1360 .0084
June
2.1198
2.1260
2.1059
2.1235 .0052
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
2.0957
2.0985
2.0694
2.0897 –.0052
May
June
2.0999
2.1029
2.0748
2.0949 –.0047
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
2.784
2.798
2.755
2.786
.005
May
June
2.812
2.825
2.784
2.807 –.006
July
2.848
2.859
2.823
2.844 –.005
Sept
2.840
2.848
2.814
2.835 –.003
Oct
2.848
2.860
2.825
2.846 –.004
April'19
2.616
2.622
2.608
2.621
.005
381.00
390.00
387.25
396.50
380.50
389.50
386.50
395.75
May
July
222.00
225.25
227.00
229.75
221.75
225.00
222.75
228.75
Soybeans (CBT)-5,000 bu.; cents per bu.
116.00
117.55
116.85
118.80
–1.65
187
–1.65 149,999
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
t
10.69
10.86
t
10.93
11.12
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
24.89
24.90
24.89
24.90
July
Sept
25.37
25.37
25.25
25.37
Cotton (ICE-US)-50,000 lbs.; cents per lb.
83.17
84.57
82.89
84.76
May
July
81.52
84.54
81.52
83.94
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
145.95
147.55
144.65
147.50
May
July
147.35
149.00
145.50
148.85
11.14
11.40
May
July
202
112,386
528
370,700
53,312
9,178
58,229
3,532
18,988
4,472
244
11.15
11.40
…
–.18
2,943
1,433
2.50
247
2.43 132,015
–.05
.85
2,251
8,474
Interest Rate Futures
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
June
Sept
142-090 142-160
141-170 141-170
141-170
140-230
141-240
140-290
–25.0 813,033
–25.0
5,719
20
112,205
June
Sept
119-060 119-090
118-265 118-285
118-310
118-195
119-025
118-225
–8.0 3,767,399
–9.0 17,308
537,498
248,920
156,732
234,897
279,810
152,156
June
113-097 113-112
113-062
113-095
–3.0 3,553,169
June
Sept
106-005 106-010
105-255 105-260
105-312
105-255
106-005
105-260
–.7 1,993,067
–.7
2,506
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
t 98.308
98.310
… 330,102
t 98.065
98.065 –.010 314,074
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
92.594
92.719
t 92.438
92.531 –.406 30,620
June
1 Month Libor (CME)-$3,000,000; pts of 100%
...
...
... 98.0900 .0075
1,033
May
Eurodollar (CME)-$1,000,000; pts of 100%
97.6500 97.6500
t 97.6275 97.6275 –.0200 401,124
May
June
97.6300 97.6300
t 97.6050 97.6050 –.0250 1,729,603
Dec
97.3550 97.3600
t 97.3350 97.3400 –.0200 2,069,865
Dec'19
97.0000 97.0150
t 96.9800 96.9950 –.0250 2,035,456
98.310
98.070
April
July
34,620
147,041
36,008
163,467
17,651
283,136
190,736
136,622
118,017
88,748
98.310
98.075
Currency Futures
May
June
.9198
.9222
.9200
.9223
.9153
.9167
.9156 –.0058
165
.9176 –.0058 153,094
May
June
.7788
.7804
.7798
.7808
.7760
.7762
.7787 –.0009
110
.7792 –.0009 114,040
May
June
1.3998
1.4024
1.4002
1.4028
1.3947
1.3955
1.3952 –.0031
1,296
1.3972 –.0031 178,525
1033.25
1045.00
1020.50
1032.00
1027.50
1039.25
5.25 88,329
5.25 436,878
May
July
372.20
376.30
380.10
384.10
371.70
375.70
376.20
380.50
4.10 37,114
4.20 242,455
t
30.73
30.79
t
30.99
31.06
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
1310.00 1318.00
1309.00 1310.50
May
July
1321.00 1328.00 s
1317.50 1322.00
Wheat (CBT)-5,000 bu.; cents per bu.
May
473.00
488.50
472.25
486.25
July
485.25
501.50
484.50
499.00
Wheat (KC)-5,000 bu.; cents per bu.
May
493.00
509.25
493.00
507.00
July
512.75
529.00
511.75
526.50
Wheat (MPLS)-5,000 bu.; cents per bu.
May
592.75
601.25
592.00
599.50
July
598.75
608.75
598.75
606.50
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
April
139.200 139.900
139.200 139.850
Aug
145.975 147.775
145.425 147.425
Cattle-Live (CME)-40,000 lbs.; cents per lb.
April
121.300 122.050
121.300 121.925
June
105.025 105.800
104.625 105.575
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
May
67.050
68.700
66.700
68.550
June
74.725
75.600
73.950
75.350
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
May
556.60
561.70 s
554.70
556.20
July
546.00
548.30 s
544.60
545.40
Milk (CME)-200,000 lbs., cents per lb.
April
14.52
14.53
14.50
14.53
May
15.08
15.12
14.97
15.02
Cocoa (ICE-US)-10 metric tons; $ per ton.
2,875
2,875 s
2,875
2,856
May
July
2,820
2,865 s
2,786
2,836
–.22 41,674
–.21 242,102
Soybean Meal (CBT)-100 tons; $ per ton.
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
31.07
31.35
British Pound (CME)-£62,500; $ per £
812
4,449
1022.25
1033.50
–2.50
.50
Swiss Franc (CME)-CHF 125,000; $ per CHF
t 1.0198
1.0220 –.0042 70,855
Australian Dollar (CME)-AUD 100,000; $ per AUD
.7601
.7602
t
.7552
.7565 –.0034
682
May
June
.7606
.7607
t
.7552
.7565 –.0034 120,059
July
.7610
.7616
t
.7590
.7567 –.0034
260
Aug
.7605
.7606
t
.7564
.7568 –.0034
198
Sept
.7606
.7609
t
.7564
.7570 –.0034
1,020
Dec
.7595
.7595
t
.7582
.7577 –.0034
414
Mexican Peso (CME)-MXN 500,000; $ per MXN
.05270
.05275
.05180
.05246 –.00010 230,855
June
Sept
.05117
.05198
t .05107
.05173 –.00009
1,338
Euro (CME)-€125,000; $ per €
1.2248
1.2248
t 1.2178
1.2194 –.0061
1,137
May
June
1.2280
1.2286
1.2206
1.2224 –.0061 483,635
13.75 28,041
14.75 238,600
Mini DJ Industrial Average (CBT)-$5 x index
7,993
32,280
–.40
.40
2,817
3,483
.01
–.11
Natural gas (bcf)
1,182,361
...
1,181 1,338
429,737
236,807
23,304
47
23,257
213,503
-1,700
...
-600
...
...
...
428
236
23
0
23
213
1,299
...
1
...
-900
...
...
...
...
Net crude, petroleum
products, incl. SPR
1,847,079
39
125
11
115
33
262
...
Total petroleum
product
19,000
Expected Previous
change
week
...
21,434
1460.70
June
1461.70
1460.60
U.S. Dollar Index (ICE-US)-$1,000 x index
90.54
90.12
June
Sept
91.04
90.59
76,948
29.0 232,914
28.3 11,179
–1.50
1463.80
1.40
90.95
90.50
.42
.42
90.52
90.12
10,127
53
30,325
1,285
Source: SIX Financial Information
5-year
avg
4-week
avg
5-year
avg
9,770 11,280
10,362
9,460
529
241
22
0
22
219
428
238
24
0
24
214
470
228
29
0
29
198
8,469
896
7
0
7
889
...
...
...
...
...
...
7,930 8,912
705 916
36 134
0
0
36 134
669 782
8,237
754
18
0
18
736
7,391
726
70
0
70
656
2
1
2
...
...
...
...
1,850
40
134
12
122
39
246
1,922
...
...
4-week
avg
...
...
...
...
...
...
60
123
2
121
183
664
...
2,188
154
103
22
82
191
563
94
54
0
54
190
994
96
113
20
93
214
803
3,045 5,301
3,311
98
139
58
81
223
796
U.S. Corporate
3.970 3.030 3.970
1139.93
-2.2
Fannie mae (FNMA) 3.490 2.670 3.490
-2.2
Intermediate
3.660 2.530 3.660
1755.97
-2.2
Freddie Mac (FHLMC) 3.500 2.680 3.500
Long term
4.650 3.990 4.650
513.50
-1.7
3659.78 -7.0
High Yield Bonds Merrill Lynch
5-year
avg
20,366 19,197
9,083
...
9,857
9,206
9,354
8,921
jet fuel
Distillates
Residual fuel oil
Propane/propylene
Other oils
1,553
3,749
402
884
3,329
...
...
...
...
...
1,827
4,356
539
1,054
3,801
1,431
3,667
203
947
3,656
1,695
4,041
378
1,199
3,700
1,599
4,014
317
...
...
Triple-C-rated
10.074 9.607 11.091
539.29
-0.9
2836.15
-0.9
High Yield 100
6.104 4.948 6.319
747.42
-1.0
377.03
-0.5
Global High Yield Constrained 5.719 4.934 5.755
373.38
Europe High Yield Constrained 2.827 1.897 2.957
709.55
503.79
4250
3250
t
2250
Five-year average
for each week
1250
250
J A S O N D
J F M A
2018
Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires
Exchange-Traded Portfolios | WSJ.com/ETFresearch
AMLP
XLY
XLP
XLE
XLF
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
MTUM
FLOT
IAU
LQD
HYG
EMB
MBB
ACWI
EWZ
EFA
10.13
101.99
50.20
73.54
27.65
82.16
73.61
106.14
103.64
119.22
66.50
56.18
63.03
265.42
188.57
78.53
60.54
105.67
96.10
73.51
51.86
105.48
51.01
12.69
114.72
85.50
110.31
103.40
71.68
42.04
70.55
0.80 –6.1
3.3
0.41
0.18 –11.8
1.8
0.79
–0.07 –0.9
0.45 –0.6
0.29 –2.7
–0.10 –2.8
0.03 –0.9
–0.05 –2.4
0.6
–0.23
–0.60 –1.3
–0.25 –0.1
0.20 –1.3
0.07 –0.6
2.2
–0.17
0.15 –1.0
–0.13 –3.3
0.21 –2.5
0.7
–0.14
... –1.7
2.3
0.15
0.4
0.02
1.4
–0.78
–0.31 –5.6
0.01 –2.0
–0.36 –5.0
–0.06 –3.0
0.01 –0.6
3.9
–0.83
0.3
–0.17
ETF
Closing Chg YTD
Symbol Price (%) (%)
iShMSCI EAFE SC
iShMSCIEmgMarkets
iShMSCIEurozone
iShMSCIJapan
iShNasdaqBiotech
iShNatlMuniBd
iShRussell1000Gwth
iShRussell1000
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000
iShRussell2000Val
iShRussell3000
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500Value
iShUSPfdStk
iShShortTreaBd
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500EW
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS Div
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
SHV
TIP
SHY
IEF
IWP
MINT
QQQ
RSP
BKLN
JNK
GLD
SCHF
SCHB
SCHD
65.48
46.30
44.30
60.58
103.26
107.59
135.05
146.84
120.93
191.58
154.20
125.10
156.54
206.08
87.06
217.28
153.87
110.37
37.02
110.33
111.87
83.26
101.13
121.42
101.55
158.65
99.73
23.09
35.77
125.41
34.04
63.92
48.46
–0.30
–0.77
–0.36
0.31
–0.01
–0.32
0.12
0.16
0.23
–0.29
–0.15
–0.10
0.13
0.06
0.21
–0.12
0.16
0.26
–0.40
...
–0.15
–0.01
–0.22
–0.04
0.01
0.12
0.28
...
–0.14
–0.65
–0.12
0.17
0.52
1.5
–1.7
2.1
1.1
–3.3
–2.8
0.3
–1.2
–2.7
2.6
1.1
–0.5
–1.0
–1.0
–2.3
0.7
0.7
–3.4
–2.8
0.1
–1.9
–0.7
–4.2
0.6
–0.0
1.9
–1.3
0.2
–2.6
1.4
–0.1
–0.9
–5.3
1.3
425.52
0.1
306.63
U.S Agency Bloomberg Barclays
Global Government 1.610 1.300 1.650
Canada
2.340 1.570 2.340
EMU§
1.132 0.956 1.311
-0.1
France
0.930 0.690 1.040
-0.7
Germany
0.650 0.330 0.740
Japan
0.380 0.350 0.460
0.8
1615.12
-1.3
U.S Agency
2.780 1.690 2.780
289.70
1450.79
-0.8
10-20 years
2.660 1.510 2.660
556.69
-0.7
Netherlands
0.740 0.460 0.830
20-plus years
3.460 2.730 3.460
912.27
-2.0
U.K.
1.730 1.340 1.830
Yankee
3.610 2.610 3.610
782.35
-3.2
Emerging Markets ** 6.258 5.279 6.258
3228.85
-4.6
-2.4
0.3
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
Closing Chg YTD
Symbol Price (%) (%)
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
63.12
240.70
343.34
263.63
91.01
64.83
50.68
22.50
168.94
131.21
164.37
100.20
44.67
45.28
59.30
69.77
54.33
140.44
154.68
82.67
80.45
83.43
121.21
153.84
110.24
74.13
242.17
78.09
78.04
148.31
78.73
54.43
56.54
135.95
73.69
104.09
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Global Government Bonds: Mapping Yields
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
2.375
2.750
Latest(l)-2 -1
4.500
Australia 2
2.110
10
2.850
0.750
0.000
0.500
0.050
0.100
0.100
1.400
1.400
1
l
l
l
l
France 2 -0.477 t
10 0.861 s
l
Germany 2 -0.552 t
10 0.637 s
l
l
l
Italy 2 -0.302 s
10 1.781 s
l
Japan 2 -0.135 s
10 0.060 s
l
Spain 2 -0.330 t
10 1.300 t
l
2.000
U.K. 2
4.250
10
Yield (%)
3 4 Previous
2
U.S. 2 2.491 s
10 3.025 s
2.250
0.000
0
l
l
l
0.892 s
1.542 t
l
l
Month ago
Year ago
2.471
3.003
2.266
2.817
1.275
2.335
2.110
2.038
1.669
2.850
2.660
2.607
-0.472
-0.493
0.851
0.764
-0.547
-0.609
0.634
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
-36.0
-38.1
39.4
-17.5
-15.3
27.2
-0.406 -296.8
0.890
-216.4
-294.2
-168.0
-215.2
-144.5
-301.7
-195.4
0.529
-0.679 -304.4
0.377
-238.7
-236.9
-195.8
-0.311
-0.308
-0.050
-278.2
-132.4
1.767
1.880
2.264
-0.136
-0.156
-0.208
0.055
0.021
-0.324
-0.335
-0.231
1.305
1.267
1.655
0.882
0.893
1.542
1.447
-279.3
-124.3
-262.6
0.021 -296.5
-282.1
-123.6
-7.1
-260.6
-148.2
-294.8
-231.4
-279.5
-150.5
-172.5
-169.8
-68.1
0.117
-160.0
-158.9
-115.8
1.085
-148.2
-146.0
-125.0
Source: Tullett Prebon
in that same company’s share price.
Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions.
ETF
Global Government J.P. Morgan†
Investment-grade spreads that tightened the most…
Natural gas,
lower 48 states
Largest 100 exchange-traded funds, latest session
High Yield Constrained 6.330 5.373 6.417
Corporate Debt
Billions of cubic feet; weekly totals
M J
2017
-0.5
5,615
Natural gas storage
motor gasoline
Kerosene-type
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShEdgeMSCIUSAMom
iShFloatingRateBd
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCI ACWI
iShMSCIBrazil
iShMSCI EAFE
-3.8
** EMBI Global Index
Year
ago
3.480 2.660 3.480
2561.73
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
...
40
127
11
116
34
262
-2.1
2692.90
2403.01
Expected Previous
change
week
Current
1911.66
3.411 2.716 3.411
.40
1555.20
Mortgage-Backed
Ginnie Mae (GNMA) 3.460 2.630 3.460
415.31
1888.20
1540.50
-2.2
9.25 2,905,501
9.75 94,558
1872.10
1559.70
U.S. Corporate Indexes Bloomberg Barclays
1944.56
3.004 2.213 3.004
1897.00
1557.90
3.330 2.380 3.330
U.S. Aggregate
22-plus year
1888.20
Mini Russell 1000 (ICE-US)-$100 x index
-2.7
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
1891.89
YTD total
return (%)
-2.5
June
June
Index
Total
return
close
390.22
2644.50
2649.25
Mini Russell 2000 (ICE-US)-$100 x index
Yield (%)
Latest Low High
2.701 1.744 2.701
2611.25
2615.75
6555.8
6580.8
YTD total
return (%)
12-22 year
2648.25
2652.25
6429.3
6457.0
Total
return
close
-2.2
2635.25
2638.50
6576.3
6600.0
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
403.04
June
Sept
6525.8
6554.0
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
4.250 3.340 4.250
9.20
9.60
June
Sept
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
M=monthly; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 4/24
Source: WSJ Market Data Group
Triple-B-rated
2644.50
2649.20
Finished
Wednesday, April 25, 2018
Closing Chg YTD
Symbol Price (%) (%)
28.9800
0.2200
n.a.
0.2914
0.2425
n.a.
-3.6
2612.00
2616.60
10,520
19,110
16.6500
19.9800
16.5740
20.7180
*£11.9000
Fats and Oils
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
694.91
2647.70
2649.60
1,229
Year
ago
n.a.
113
3.5950
123.2
518.6
260
102
n.a.
2.7325
25.75
n.a.
381.20
69,989
7,527
2634.80
...
Weekly Demand, 000s barrels per day
Current
Grains and Feeds
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
SoybeanMeal,Cent IL,rail,ton48%-u
Silver, troy oz.
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
0.5875
0.8294
*93.20
n.a.
n.a.
2.652 1.736 2.652
1,185
1,846 2,028
1325.40
1424.81
1321.65
1467.03
*1327.35
*1328.85
1374.31
1387.52
1387.52
1601.27
1298.29
1387.52
Muni Master
June
Sept
4-week
avg
44
151
10
141
39
271
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
195.16
181.00
1.0875
2.3750
148.25
161.00
82.00
n.a.
1.1992
1.4079
1.2650
15.55
n.a.
61.34
1.0548
0.8817
n.a.
169.18
7-12 year
t
39,282
122,729
9,946
112,782
32,973
263,422
Fibers and Textiles
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
2.000
Kerosene-type
jet fuel
Distillates
Heating oil
Diesel
Residual fuel oil
Other oils
ETF
Metals
Gold, per troy oz
Food
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
select 1-3,600-900 lbs.-u
Broilers, National comp wghtd-u,w
Butter,AA Chicago
Cheddar cheese,bbl,Chicago
Cheddar cheese,blk,Chicago
Milk,Nonfat dry,Chicago lb.
Cocoa,Ivory Coast-w
Coffee,Brazilian,Comp
Coffee,Colombian, NY
Eggs,large white,Chicago-u
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
Hogs,Iowa-So. Minnesota-u
Pork bellies,12-14 lb MidUS-u
Pork loins,13-19 lb MidUS-u
Steers,Tex.-Okla. Choice-u
Steers,feeder,Okla. City-u,w
-2.2
94 104,390
91
2,324
Inventories, imports and demand for the week ended April 20. Current figures are in thousands of barrels or
thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas import
Natural-gas import and demand data are available monthly only.
Inventories, 000s barrels
Imports, 000s barrels per day
Crude oil and
petroleum prod
Crude oil
excluding SPR
Gasoline
Finished gasoline
Reformulated
Conventional
Blend. components
LBMA Platinum Price PM
*919.0
Platinum,Engelhard industrial
919.0
Platinum,Engelhard fabricated
1019.0
Palladium,Engelhard industrial
973.0
Palladium,Engelhard fabricated
1073.0
Aluminum, LME, $ per metric ton
*2222.0
Copper,Comex spot
3.1320
Iron Ore, 62% Fe CFR China-s
66.3
Shredded Scrap, US Midwest-s,m
381
Steel, HRC USA, FOB Midwest Mill-s
880
9.9050
7.4950
4.8650
5.0700
5.8238
357.34
24078
24094
Mini Nasdaq 100 (CME)-$20 x index
3,276
3,952
Year
ago
Other metals
Wednesday
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
3.410 2.470 3.410
23782
23811
Mini S&P Midcap 400 (CME)-$100 x index
21
85
21 135,313
Expected Previous
change
week
0.8715
0.9873
2.790
2.710
2.440
2.070
2.010
1.860
2.670
61.450
12.450
Propane,tet,Mont Belvieu-g
Butane,normal,Mont Belvieu-g
NaturalGas,HenryHub-i
NaturalGas,TranscoZone3-i
NaturalGas,TranscoZone6NY-i
NaturalGas,PanhandleEast-i
NaturalGas,Opal-i
NaturalGas,MarcellusNE PA-i
NaturalGas,HaynesvilleN.LA-i
Coal,C.Aplc.,12500Btu,1.2SO2-r,w
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w
*16.5950
12204
Double-A-rated
24108
24122
Macro & Market Economics
Watching the Gauges: U.S. Supply and Demand
Current
Wednesday
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
-3.0
23998
24016
Mini S&P 500 (CME)-$50 x index
.825
3,523
.525 148,923
3,398
94,746
Wednesday
Energy
550.52
June
Sept
S&P 500 Index (CME)-$250 x index
2,557
22,233
1.100
.525
1.0261
Index Futures
14.50 19,823
14.50 131,478
.750
.950
1.0260
June
1,490
5,389
6.75
7.75
Wednesday, April 25, 2018
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Japanese Yen (CME)-¥12,500,000; $ per 100¥
5.25 171,429
5.75 761,964
–1.50
3.50
Cash Prices
–.28 63,595
–.26 504,408
4
71,354
May
July
31.00
31.25
117.75
120.75
Open
interest
Chg
Canadian Dollar (CME)-CAD 100,000; $ per CAD
May
July
May
July
117.75
120.75
May
July
Open
interest
Agriculture Futures
Oats (CBT)-5,000 bu.; cents per bu.
Settle
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Metal & Petroleum Futures
Corn (CBT)-5,000 bu.; cents per bu.
Contract
High hilo
Low
Open
WSJ.com/commodities
0.17 –1.0
0.25 –2.7
0.04 –0.6
0.25 –1.2
0.28 –3.7
1.4
0.02
0.02 –3.8
–0.88 –3.2
2.6
–0.16
0.14 –1.2
2.2
–0.30
0.14 –1.8
–0.22 –0.4
–0.75 –1.4
0.3
–0.40
–0.14 –0.4
–0.28 –0.7
0.21 –0.1
0.4
0.34
0.21 –3.5
–0.22 –4.0
–0.19 –4.5
0.17 –1.1
0.08 –0.6
0.25 –1.2
–0.19 –10.7
0.26 –1.3
... –1.3
–0.06 –1.6
0.3
–0.01
–0.14 –3.5
0.1
–0.09
–0.32 –0.5
0.11 –0.9
–0.04 –0.8
0.11 –2.1
Spread*, in basis points
One-day change
Stock Performance
Close ($)
% chg
Issuer
Symbol Coupon (%)
Citibank NA
Toronto–Dominion Bank
Royal Bank of Canada
Ecolab
C
TD
RY
ECL
2.850
2.125
2.100
4.350
Feb. 12, ’21
April 7, ’21
Oct. 14, ’20
Dec. 8, ’21
40
41
46
59
–19
–19
–13
–10
57
54
55
n.a.
…
55.53
75.21
145.17
…
0.25
–0.08
–0.74
BNP Paribas S.A.
Toyota Motor Credit
Walmart
Assurant
BNP
TOYOTA
WMT
AIZ
5.125 Nov. 15, ’49
2.700 Jan. 11, ’23
1.900 Dec. 15, ’20
7.000 March 27, ’48
263
46
24
349
–9
–9
–9
–8
n.a.
50
n.a.
370
...
...
87.17
93.39
...
...
0.74
0.03
n.a.
57
310
131
92.31
…
50.12
55.40
–0.87
…
0.28
0.56
59
132
n.a.
403
372.72
…
...
14.60
0.99
…
...
–1.22
Maturity
Current
Last week
…And spreads that widened the most
Microsoft
American Express Credit
HSBC Holdings
American International
MSFT
AXP
HSBC
AIG
3.625 Dec. 15, ’23
2.375 May 26, ’20
6.500 March 23, ’49
4.200
April 1, ’28
43
57
318
139
Sherwin–Williams
Bunge Limited Finance
Commonwealth Bank of Australia
Deutsche Bank AG
SHW
BG
CBAAU
DB
2.250
3.250
2.400
7.500
66
152
67
409
May 15, ’20
Aug. 15, ’26
Nov. 2, ’20
April 30, ’49
22
19
18
17
15
13
13
13
High-yield issues with the biggest price increases…
Bond Price as % of face value
Current
One-day change
Issuer
Symbol
Coupon (%)
Sears Holdings
Teva Pharmaceutical Finance Netherlands III
Altice Financing S.A.
McDermott Escrow 1
SHLD
TEVA
ALTICE
MDR
6.625
6.000
7.500
10.625
Oct. 15, ’18
April 15, ’24
May 15, ’26
May 1, ’24
86.000
99.000
99.750
100.000
Weatherford International
CBL & Associates
Frontier Communications
Sprint
WFT
CBL
FTR
S
9.875
5.950
8.500
7.125
Feb. 15, ’24
Dec. 15, ’26
April 15, ’20
June 15, ’24
95.750
82.060
102.000
101.531
Maturity
2.45
1.25
1.13
1.06
1.00
0.76
0.75
0.53
Last week
Stock Performance
Close ($)
% chg
n.a.
n.a.
101.063
101.750
3.22
…
...
…
–3.01
…
...
…
97.000
83.715
102.090
103.375
2.92
3.89
8.52
6.02
5.80
–2.51
0.71
1.86
…And with the biggest price decreases
Hertz
West
Spectrum Management Holding
DISH DBS
HTZ
WSTC
TWC
DISH
6.250 Oct. 15, ’22
8.500 Oct. 15, ’25
4.500 Sept. 15, ’42
7.750
July 1, ’26
93.938
96.100
83.781
92.520
–2.11
–1.92
–1.87
–1.71
94.720
98.500
87.194
97.875
21.28
...
...
…
0.61
...
...
…
Teck Resources
Goodyear Tire & Rubber
Park Aerospace Holdings
Freeport–McMoran
TCKBCN
GT
AVOL
FCX
6.000 Aug. 15, ’40
4.875 March 15, ’27
5.500 Feb. 15, ’24
5.400 Nov. 14, ’34
104.051
94.000
95.438
92.000
–1.70
–1.63
–1.56
–1.50
106.400
97.353
98.500
99.063
...
25.51
...
15.37
...
–5.06
...
–4.42
*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
.
THE WALL STREET JOURNAL.
Thursday, April 26, 2018 | B9
BIGGEST 1,000 STOCKS
How to Read the Stock Tables
The following explanations apply to NYSE,
NYSE Arca, NYSE American and Nasdaq Stock
Market listed securities. Prices are composite
quotations that include primary market trades
as well as trades reported by Nasdaq BX
(formerly Boston), Chicago Stock Exchange,
Cboe, NYSE National and Nasdaq ISE.
The list comprises the 1,000 largest
companies based on market capitalization.
Underlined quotations are those stocks with
large changes in volume compared with the
issue’s average trading volume.
Boldfaced quotations highlight those issues
whose price changed by 5% or more if their
previous closing price was $2 or higher.
Footnotes:
s-New 52-week high.
t-New 52-week low.
dd-Indicates loss in the most recent
four quarters.
FD-First day of trading.
h-Does not meet continued listing
standards
lf-Late filing
q-Temporary exemption from Nasdaq
requirements.
t-NYSE bankruptcy
v-Trading halted on primary market.
vj-In bankruptcy or receivership or
being reorganized under the
Bankruptcy Code, or securities
assumed by such companies.
Stock
Net
Sym Close Chg
Stock
Net
Sym Close Chg
Net
Sym Close Chg
Stock
Net
Sym Close Chg
Stock
Stock
Net
Sym Close Chg
Stock
Net
Sym Close Chg
Stock
Net
Sym Close Chg
RTN 213.69 -5.11 SOQUIMICH SQM 54.53 -1.52 TimeWarner TWX 96.28 0.24 VMware
-1.71 OwensCorning OC 67.46 -8.28 Raytheon
VMW 131.62 -2.34
SNE 49.58 0.19 Toll Bros
TOL 42.03 1.04 Vodafone VOD 29.58 -0.26
49.61 0.13 Sony
0.09 PG&E
PCG 46.34 0.04 RealtyIncome O
SO 46.03 0.33 Torchmark TMK 86.47 0.35 VornadoRealty VNO 65.01 -0.43
RHT 158.14 -1.96 Southern
-4.85 PLDT
PHI 27.07 0.11 RedHat
TTC 60.06 0.56 VoyaFinancial VOYA 52.75 0.04
6.63 PNC Fin
PNC 145.70 0.69 RegencyCtrs REG 56.00 -0.18 SoCopper SCCO 53.02 -1.63 Toro
0.85 POSCO
PKX 83.01
... RegenPharm REGN 316.17 4.17 SouthwestAir LUV 53.83 -0.05 TorontoDomBk TD 55.53 0.14 t VulcanMatls VMC 112.12 0.76
TOT 62.13 -0.66
0.41 PPG Ind
PPG 107.88 2.11 RegionsFin RF 19.02 0.15 SpectraEnerPtrs SEP 35.44 0.24 Total
RGA 156.77 -0.11 SpiritAeroSys SPR 78.86 -0.11 TotalSystem TSS 84.49 -1.12
0.41 PPL
PPL 28.64 0.14 ReinsGrp
GGP
GGP 19.39 -0.01
Splunk
SPLK
97.64
-2.72
RelianceSteel
RS
88.80
1.10
ToyotaMotor
TM 131.10 1.63
-1.45 PTC
PTC 82.15 -1.05
Gallagher AJG 69.38 -0.18
WABCO
WBC 130.33 0.16
SPOT 153.33 -1.74 TractorSupply TSCO 62.19 1.00
-0.19 PVH
PVH 158.77 -1.06 RepublicSvcs RSG 65.07 0.15 Spotify
Gaming&Leisure GLPI 33.76 -0.54
WEC Energy WEC 62.80 0.20
S
6.02 0.11 TransCanada TRP 42.65 -0.26
ResMed
RMD 96.45 -0.11 Sprint
0.10 Paccar
PCAR
64.90
-0.02
Gap
GPS 29.91 0.72
WEX
WEX 157.18 -2.50
SQ 44.75 -1.26 TransDigm TDG 324.38 -2.20
-0.09 PackagingCpAm PKG 117.91 3.91 RestaurantBrands QSR 54.90 -1.40 Square
GardnerDenver GDI 31.68 0.45
W.P.Carey WPC 62.35 0.11
RIO 55.23 -0.45 StanleyBlackDck SWK 143.21 1.60 TransUnion TRU 65.41 -0.98
0.44 PacWestBancorp PACW 52.18 0.27 RioTinto
Garmin
GRMN 57.83 0.17
WPP
WPP 78.35 0.67
TRV 132.22 -0.66
0.03 PagSeguroDig PAGS 32.53 -1.28 s RobertHalf RHI 60.48 3.03 Starbucks SBUX 57.71 -0.10 Travelers
s WPX Energy WPX 17.08 0.40
Gartner
IT 117.38 -0.62
ROK 167.30 5.29 StateStreet STT 100.89 -0.21 Trimble
TRMB 34.83 -0.75
5.05 PaloAltoNtwks PANW 190.55 -0.72 Rockwell
Gazit-Globe GZT 9.40 -0.07
Wabtec
WAB 89.38 -0.96
STO 24.96 -0.39 TripAdvisor TRIP 38.33 -3.58
0.22 ParkHotels PK 28.82 0.27 RockwellCollins COL 133.30 0.27 Statoil
GeneralDynamics GD 214.53 -7.49
WalgreensBoots WBA 65.95 0.95
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
0.24 ParkerHannifin PH 168.27 4.92 RogersComm B RCI 47.22 -0.32 SteelDynamics STLD 46.35 0.61 TurkcellIletism TKC 8.74 -0.13
GeneralElec GE 14.05 -0.63
Walmart
WMT 87.17 0.64
changes in the closing prices from 4 p.m. the previous day.
ROL 49.35 -1.33 STMicroelec STM 21.99 0.68 TurquoiseHill TRQ 3.07 -0.02
0.26 ParsleyEnergy PE 30.03 0.30 Rollins
GeneralMills GIS 44.04 -0.33
SYK 165.38 0.67 21stCenturyFoxB FOX 36.13 0.61 WasteConnections WCN 72.48 -0.17
0.90 Paychex
PAYX 60.00 0.05 RoperTech ROP 267.82 1.97 Stryker
GeneralMotors GM 38.11 0.18
WasteMgt
WM
81.25 -0.15
-0.74 PaycomSoftware PAYC 110.78 0.23 RossStores ROST 78.29 0.57 SumitomoMits SMFG 8.61 0.02 21stCenturyFoxA FOXA 36.58 0.56
Net
Net Genpact
Wednesday, April 25, 2018
G
31.40 -0.26
Waters
WAT191.66 -1.52
TWTR 29.75 -0.72
Sym Close Chg Stock
Sym Close Chg
-0.66 PayPal
PYPL 74.00 -1.28 RoyalBkCanada RY 75.21 -0.06 SunComms SUI 91.94 0.60 Twitter
Net Stock
Gentex
GNTX 22.99 0.65
Watsco
WSO168.68 -5.09
-0.49 Pearson
PSO 11.09 0.16 RoyalBkScotland RBS 7.72 -0.03 SunLifeFinancial SLF 40.84 -0.05 TylerTech TYL 220.86 -2.19
Stock
Sym Close Chg BankofAmerica BAC 30.14 -0.05 ConchoRscs CXO 154.60 2.89 GenuineParts GPC 88.82 0.42
Wayfair
W 67.47 -1.30
-0.62 PembinaPipeline PBA 31.42 -0.04 RoyalCaribbean RCL 118.49 1.22 SuncorEnergy SU 38.30 0.26 TysonFoods TSN 70.44 0.07
GGB 4.75 -0.05
BankofMontreal BMO 75.63 0.22 ConocoPhillips COP 65.06 -0.25 Gerdau
Weibo
WB
108.88 -5.25
SunTrustBanks
STI
67.32
-0.21
UBS Group UBS 16.77 -0.11
-0.08 Pentair
PNR 67.64 0.53 RoyalDutchA RDS.A 71.12 0.04
GIL 28.90 -0.40
BankNY Mellon BK 55.40 0.01 ConEd
ED 78.39 0.08 Gildan
WellCareHealth WCG 207.93 7.03
UDR 35.24 0.06
0.02 People'sUtdFin PBCT 18.47 -0.12 RoyalDutchB RDS.B 73.45 0.05 Symantec SYMC 28.48 0.79 UDR
GileadSciences
GILD
73.25
0.53
BkNovaScotia
BNS
60.46
0.02
ConstBrands
A
STZ
226.87
0.64
WellsFargo
WFC
53.11 0.60
ABB
ABB 23.33 -0.43
UGI 47.29 0.29
0.13 t PepsiCo
PEP 101.15 -0.29 RoyalGold RGLD 88.98 0.38 SynchronyFin SYF 33.29 -1.06 UGI
GSK 39.12 -1.52
ADT
ADT 9.12 0.13 BankofOzarks OZRK 47.36 -0.22 ContinentalRscs CLR 65.37 1.03 GSK
RYAAY 111.61 -1.28 Synopsys SNPS 83.74 -0.30 US Foods USFD 34.50 0.31 t Welltower WELL 50.52 -0.50
0.04 PerkinElmer PKI 73.24 0.22 Ryanair
BCS 12.00 -0.10 Cooper
COO 227.59 4.36 GlobalPayments GPN 109.53 -0.12
AECOM
ACM 35.49 -0.21 Barclays
SAP 108.89 0.39 SynovusFin SNV 52.57 0.30 UltaBeauty ULTA 236.20 2.26 WestPharmSvcs WST 88.02 -3.98
0.22 Perrigo
PRGO 77.82 -2.67 SAP
GDDY 63.35 0.80
CPRT 51.34 0.17 GoDaddy
SYY 62.45 0.52 UltSoftware ULTI 238.35 -2.29 WestarEnergy WR 53.05 0.08
AES
AES 12.03 0.03 BarrickGold ABX 13.49 0.11 Copart
1.05 PetroChina PTR 73.52 -0.85 S&P Global SPGI 189.58 0.51 Sysco
Goldcorp
GG
13.95
-0.41
BaxterIntl
BAX
66.52
0.37
Corning
GLW
27.06
0.33
Aflac
AFL 45.41 0.24
t UltraparPart UGP 17.58 0.02 WestAllianceBcp WAL 59.12 -0.32
-0.11 PetroleoBrasil PBR 13.50 -0.46 SBA Comm SBAC 164.49 -0.44
CSGP 370.16-14.85 GoldmanSachs GS 239.23 -3.26
AGNC Invt AGNC 18.94 0.08 BectonDicknsn BDX 229.49 -1.39 CoStar
SEI
Investments
SEIC
68.46
-1.03
UnderArmour A UAA 16.44 -0.52 WesternDigital WDC 85.92 -0.51
-0.33 PetroleoBrasilA PBR.A 12.53 -0.46
t Goodyear GT 25.51 -1.36
BeiGene
BGNE
166.00
-3.79
Costco
COST
193.97
1.46
ANGI Homesvcs ANGI 13.41 -0.24
SINA 91.62 -1.21 TAL Education TAL 35.43 -1.48 UnderArmour C UA 14.32 -0.49 WesternGasEquity WGP 34.19 0.10
-0.07 Pfizer
PFE 36.68 -0.38 Sina
s Berkley
WRB
76.13
1.81
Graco
GGG
44.26
-0.54
Coty
COTY
16.76
0.24
Ansys
ANSS 159.86 -1.09
SHI 66.21 -0.19 TD Ameritrade AMTD 57.29 -1.77 Unilever
UN 55.70 0.04 WesternGasPtrs WES 46.64 0.45
-6.99 PhilipMorris PM 81.81 -0.68 SINOPEC
... Credicorp
GWW 277.26 -2.30
BAP 231.89 -2.74 Grainger
ASML
ASML 191.66 -2.39 BerkHathwy B BRK.B 196.80
UL 54.71 0.02 WesternUnion WU 19.15 0.13
0.26 Phillips66
PSX 109.79 0.56 SK Telecom SKM 23.04 0.02 TE Connectivity TEL 94.38 -3.36 Unilever
BerkHathwy
A
BRK.A
295279-455.00 CreditAcceptance CACC 330.12 -5.02 GreatPlainsEner GXP 31.91 0.15
WestlakeChem WLK 107.05 -1.05
AT&T
T
35.20 0.20
-0.38 PinnacleFoods PF 60.97 0.41 SLGreenRealty SLG 96.39 0.22 Telus
TU 35.37 0.29 UnionPacific UNP 136.06 3.23
BerryGlobal
BERY
55.69 0.18 CreditSuisse CS 16.97 0.68 Grifols
GRFS
20.16
-0.14
WestpacBanking WBK 21.97 -0.14
AbbottLabs ABT 58.65 0.34
-0.15 PinnacleWest PNW 79.92 0.37 SS&C Tech SSNC 49.16 -0.85 Ternium
TX 37.79 -0.13 UnitedContinental UAL 68.51 -0.44
BBY 74.38 1.21 CrownCastle CCI 105.20 -0.15 GrubHub
GRUB 95.57 -2.46
WestRock WRK 65.10 0.40
AbbVie
ABBV 91.87 0.51 BestBuy
SIVB 257.58 -0.03 TIM Part
-1.43 PioneerNatRscs PXD 198.90 2.84 SVB Fin
TSU 22.34 -0.20 UnitedMicro UMC 2.61 0.05
Bio-Techne
TECH
151.56 -0.92 CrownHoldings CCK 50.08 0.96 GpoAeroportuar PAC 103.92 -0.96
...
Abiomed
ABMD 293.20 2.27
SABR 20.22 0.02 TJX
UPS 108.66 0.44 Weyerhaeuser WY 36.18
0.95 PlainsAllAmPipe PAA 24.31 -0.45 Sabre
TJX 83.33 0.24 UPS B
Bio-RadLab
A
BIO
258.85 -0.08 t Ctrip.com
GpoAvalAcc
AVAL
8.75
-0.15
CTRP
41.29
-0.41
WheatonPrecMet WPM 21.05 0.02
Accenture ACN 150.09 -0.98
-0.55 PlainsGP
PAGP 24.70 -0.32 SageTherap SAGE 140.36 -0.83 T-MobileUS TMUS 63.93 1.35 UnitedRentals URI 157.88 1.45 Whirlpool WHR 155.48 -0.48
Biogen
BIIB 269.45 7.30 Cullen/Frost CFR 109.58 0.15 GpoFinGalicia GGAL 61.81 -3.41
ActivisionBliz ATVI 64.82 -0.52
PolarisIndustries PII 105.14 -4.42 Salesforce.com CRM 117.32 -0.56 TRowePrice TROW 111.00 3.63 US Bancorp USB 50.79 0.37 Williams
BioMarinPharm BMRN 81.53 0.40 Cummins
CMI 162.14 0.81 GrupoTelevisa TV 17.39 -0.06
WMB 25.62 0.07
Adient
ADNT 63.72 0.60
SNY 40.11 0.36 TableauSftwr DATA 81.41 -0.57 US Steel
X
37.05 0.58
Praxair
PX 149.75 2.97 Sanofi
BlackKnight BKI 48.70 0.30 CurtissWright CW 134.14 -1.36 Guidewire GWRE 82.87 -1.15
AdobeSystems ADBE 217.32 -0.57
SantanderCons SC 18.60 0.39 TaiwanSemi TSM 38.17 -0.58 UnitedTech UTX 121.45 -0.65 WilliamsPartners WPZ 35.78 0.45
BlackBerry BB 10.37 -0.03 CypressSemi CY 15.95 0.09 HCA Healthcare HCA 98.42 1.61 M&T Bank MTB 182.52 0.20 PrincipalFin PFG 61.08 0.03
WillisTowers
WLTW 149.35 -0.28
AdvanceAuto AAP 107.82 0.89
Sasol
SSL 34.69 -0.41 TakeTwoSoftware TTWO 96.22 -0.16 UnitedHealth UNH 234.90 0.68
BlackRock BLK 512.22 -1.48
HCP
HCP 22.34 0.03 MGM Resorts MGM 35.33 -0.19 t Procter&Gamble PG 72.30 -0.20 Schlumberger SLB 69.10 0.82
WIT 4.88 -0.27
AdvMicroDevices AMD 9.71 -0.38
Tapestry
TPR 53.44 0.28 UniversalHealthB UHS 122.04 1.53 Wipro
Progressive PGR 60.30 -0.41
Blackstone BX 31.66 -0.52
MPLX
MPLX
33.89
...
HDFC
Bank
HDB
94.03
-1.77
Aegon
AEG 7.30 -0.09
SchwabC
SCHW 54.60 0.11 TargaResources TRGP 46.75 0.47 UnumGroup UNM 48.46 0.22 WooriBank WF 44.18 -0.44
Prologis
PLD 64.64 -0.58
bluebirdbio BLUE 162.60 -0.40
MSCI
MSCI
149.21
1.52
HD
Supply
HDS
38.21
-0.07
Workday
WDAY
122.58 -2.98
AerCap
AER 52.26 -0.13
Seagate
STX 58.30 0.03 Target
VER 6.66 0.03
DISH Network DISH 36.86 0.08
TGT 71.14 0.61 VEREIT
Boeing
BA 342.86 13.80
MAC 55.25 -0.93 Proofpoint PFPT 120.11 -1.04 SealedAir SEE 43.93 0.28
HPQ 21.31 0.11 Macerich
Aetna
AET 178.99 1.79
VFC 78.64 0.62 Worldpay WP 79.10 -0.07
DTE Energy DTE 104.01 -0.19 HP
t TataMotors TTM 24.36 -0.28 VF
PrudentialFin
PRU
106.77
-0.37
BookingHldgs BKNG 2077.61 10.32
M
30.72 0.22
HSBC 50.12 0.14 Macy's
AffiliatedMgrs AMG 168.99 0.03
SeattleGenetics SGEN 48.13 -0.65 TechnipFMC FTI 33.56 0.17 VICI Prop VICI 18.04
... Wyndham WYN 117.75 1.93
DXC Tech DXC 101.82 -1.18 HSBC
BoozAllen BAH 39.83 -0.29
MadisonSquGarden MSG 240.99 -0.53 Prudential PUK 51.64 -0.26 SemicondctrMfg SMI 6.35 -0.13
AgilentTechs A
65.80 -0.84
V
121.21 -0.06 WynnResorts WYNN 182.89 -7.11
Danaher
DHR 100.49 0.39 Halliburton HAL 51.75 0.38
TeckRscsB TECK 24.79 -0.78 Visa
BorgWarner BWA 52.91 0.57
Hanesbrands HBI 18.01 -0.13 MagellanMid MMP 65.64 -0.04 PublicServiceEnt PEG 50.34 0.41 SempraEnergy SRE 109.31 -0.58
AgnicoEagle AEM 43.29 -0.28
Darden
DRI 91.12 0.72
TelecomArgentina TEO 30.29 0.04 VailResorts MTN 230.12 -0.77 XPO Logistics XPO 98.59 -2.14
BostonProps BXP 118.32 -0.12
HarleyDavidson HOG 42.33 0.32 MagnaIntl MGA 58.99 -0.08 PublicStorage PSA 193.71 -0.05 ServiceCorp SCI 38.85 0.61
AirProducts APD 165.57 1.57
VALE 13.68 -0.27 XcelEnergy XEL 45.77 0.09
DaVita
DVA 63.30 0.45
TelecomItalia TI
10.14 -0.24 Vale
PulteGroup PHM 30.53 0.88
BostonSci BSX 29.42 0.92
Manpower
MAN
96.00
-0.18
Harris
HRS
161.16
-3.66
XRX 30.64 -0.06
AkamaiTech AKAM 70.78 -0.19
ServiceMaster SERV 50.61 0.06 TelecomItalia A TI.A 8.84 -0.11 ValeantPharm VRX 17.54 0.07 Xerox
Deere
DE 138.00 -0.11
Qiagen
QGEN 32.37 -0.11
Braskem
BAK 25.86 -1.21
ManulifeFin
MFC
18.94
-0.11
HartfordFinl
HIG
51.83
0.60
XLNX 63.64 -0.39
ServiceNow NOW 158.00 -2.66 TeledyneTech TDY 193.39 -1.57 ValeroEnergy VLO 108.68 0.39 Xilinx
AlaskaAir ALK 66.39 1.13
DellTechs DVMT 71.78 -0.65
QRVO 67.66 -0.40
BrightHorizons BFAM 95.89 -1.06
Hasbro
HAS 86.97 0.71 MarathonOil MRO 17.97 0.26 Qorvo
XYL 75.53 0.04
ShawComm B SJR 20.85 -0.07 Teleflex
Albemarle ALB 95.46 -0.32
VarianMed VAR 125.86 -0.02 Xylem
DeltaAir
DAL 54.65 0.84
TFX
264.49
1.12
t Qualcomm QCOM 49.75 -0.19
BrighthouseFin BHF 51.38 -0.03
MarathonPetrol
MPC
80.23
0.45
Heico
A
HEI.A
75.40
-0.55
YPF 22.39 -0.16
SherwinWilliams SHW 372.72 3.64 TelefonicaBras VIV 14.14 -0.08 Vectren
Alcoa
AA 51.95 1.13
VVC 70.03 0.05 YPF
t Bristol-Myers BMY 51.76 0.18 DentsplySirona XRAY 49.16 0.29 Heico
MKL 1137.49-19.26 QuestDiag DGX 101.15 1.41 ShinhanFin SHG 42.82 -0.69
HEI 89.58 -0.57 Markel
YY 91.89 -0.66
AlexandriaRlEst ARE 121.86 0.20
VEDL 17.32 -0.51 YY
Telefonica TEF 10.15 0.08 Vedanta
DeutscheBank DB 14.60 -0.18
BritishAmTob BTI 53.60 1.50
Helm&Payne HP 72.13 0.55 MarketAxess MKTX 199.29 -1.59 QurateQVC A QRTEA 23.71 0.07 Shire
YNDX 33.01 -0.53
SHPG158.37 -5.56 TelekmIndonesia TLK 27.24 -0.37 VeevaSystems VEEV 69.42 -0.66 Yandex
AlexionPharm ALXN 106.04 -0.47
DevonEnergy DVN 35.20 0.72
Broadcom AVGO 229.00 0.61
QurateQVC B QRTEB 23.80 -1.66
Marriott
MAR
137.24
0.34
HenrySchein
HSIC
74.49
0.66
Shopify
SHOP 120.02 -3.12 Tenaris
Alibaba
BABA 170.22 -2.87
VTR 47.36 -0.01 YumBrands YUM 85.26 0.08
TS 37.20 -0.52 t Ventas
DexCom
DXCM 73.73 -0.70
BroadridgeFinl BR 107.36 -1.43
Marsh&McLen
MMC
82.61
0.04
Herbalife
HLF
103.30
1.30
SignatureBank SBNY 128.52 0.19 Teradyne
AlignTech ALGN 245.63 5.97
VRSN 118.61 0.61 YumChina YUMC 39.46 -0.42
TER 34.70 -6.80 VeriSign
DEO 137.61 0.37
BrookfieldMgt BAM 38.23 -0.24 Diageo
Hershey
HSY 93.54 0.77 MartinMarietta MLM 196.24 2.94
t SimonProperty SPG 146.74 -1.06 Tesla
Alkermes ALKS 44.07 -0.30
TSLA 280.69 -2.77 VeriskAnalytics VRSK 106.62 -0.36 ZTO Express ZTO 16.01 -0.37
BrookfieldInfr BIP 40.76 -0.25 DiamondbkEner FANG 125.75 0.02 Hess
HES 59.34 1.69 MarvellTech MRVL 20.38 -0.27 RELX
RENX 21.53 -0.04 SiriusXM
SIRI 6.25 -0.02 TevaPharm TEVA 17.27 -0.29 Verizon
Alleghany Y
585.06 0.06
VZ 50.10 0.43 ZayoGroup ZAYO 37.26 0.21
DigitalRealty
DLR
101.47 0.06
Brown&Brown BRO 26.83 0.44
MAS 37.17 1.01 RELX
HewlettPackard HPE 17.31 -0.05 Masco
RELX 21.85 -0.01 t Skyworks SWKS 87.81 0.04 TexasInstruments TXN 103.00 4.58 VertxPharm VRTX 155.15 -0.52 ZebraTech ZBRA 136.88 -0.87
Allegion
ALLE 83.03 0.88
Brown-Forman B BF.B 54.80 0.44 DiscoverFinSvcs DFS 71.86 -1.04 Hexcel
HXL 66.59 -0.97 Mastercard MA 172.47 -0.77 RPM
AOS 61.50 -0.61 Textron
RPM 48.84 0.49 SmithAO
ZG 47.34 -0.16
Allergan
AGN 157.12 0.22
TXT 63.46 -0.81 Viacom B VIAB 31.18 0.26 Zillow A
Brown-Forman A BF.A 52.53 0.14 DiscoveryA DISCA 24.10 0.16 Hilton
HLT 81.83 -0.21 MatchGroup MTCH 45.34 0.08 RSP Permian RSPP 48.62 1.11 Smith&Nephew SNN 38.75 -0.05 ThermoFisherSci TMO 214.47 1.30 Viacom A
Z
47.50 -0.18
AllianceData ADS 204.10 -1.27
VIA 36.90 1.25 Zillow C
DiscoveryC
DISCK
22.56 0.21
BuckeyePtrs BPL 40.69 0.65
HollyFrontier
HFC
59.63
-0.76
MaximIntProducts
MXIM
54.40
0.62
SJM 115.54 0.99 ThomsonReuters TRI 39.65 -0.28 Vipshop
RalphLauren RL 108.79 0.43 Smucker
AlliantEnergy LNT 42.23 0.13
VIPS 15.26 -0.04 ZimmerBiomet ZBH 110.59 1.15
DIS 101.15 1.69
Bunge
BG 72.55 -0.17 Disney
Hologic
HOLX
38.85
0.23
McCormick
MKC
105.19
1.53
RandgoldRscs GOLD 79.90 -0.14 Snap
Allstate
ALL 97.49 0.10
MMM198.84 -2.29 VirtuFinancial VIRT 35.20 0.05 ZionsBancorp ZION 55.26 0.17
SNAP 14.54 -1.09 3M
DLB 62.22 -3.64
BurlingtonStrs BURL 133.60 0.14 DolbyLab
HomeDepot HD 177.39 1.13 McCormickVtg MKC.V 104.30 1.54 RaymondJames RJF 86.82 -0.09 SnapOn
ZTS 84.57 0.22
AllyFinancial ALLY 27.92 -0.21
SNA 146.36 0.19 Tiffany
TIF 100.82 1.26 VistraEnergy VST 22.48 0.20 Zoetis
CA
CA 34.50 -0.20 DollarGeneral DG 97.25 0.43 HondaMotor HMC 34.60 0.44 McDonalds MCD 155.94 -1.38
AlnylamPharm ALNY 94.33 -0.40
DollarTree
DLTR
96.91
0.39
CBRE Group CBRE 45.39 -1.50
Honeywell
HON
147.06
-0.16
McKesson
MCK
151.71
2.82
Alphabet C GOOG 1021.18 1.20
64.80 0.02
CBS B
CBS 50.42 0.47 DominionEner D
HormelFoods HRL 36.15 -0.05 Medtronic MDT 79.46 0.09
Alphabet A GOOGL 1022.99 0.35
DPZ 233.53 1.71
CBS A
CBS.A 50.53 0.21 Domino's
DR Horton DHI 44.93 1.19 MelcoResorts MLCO 31.00 -0.63
Altaba
AABA 68.27 -0.99
Donaldson
DCI
45.09 0.17
CDK Global CDK 64.07 -0.67
HostHotels HST 19.62 0.32 MercadoLibre MELI 336.13 7.36
AlticeUSA ATUS 19.46 0.14
CDW
CDW 71.13 0.39 DouglasEmmett DEI 36.60 0.06 HowardHughes HHC 134.12 -0.87 Merck
MRK 59.63 -0.46
Altria
MO 55.84 0.54
DOV 94.94 2.45
CF Industries CF 39.61 0.67 Dover
HuanengPower HNP 25.34 -0.02 MetLife
MET 47.83 0.22
AlumofChina ACH 13.96 -0.02
CGI Group GIB 57.54 0.06 DowDuPont DWDP 63.64 0.46 t Hubbell
HUBB
107.91
-1.44
MettlerToledo
MTD 560.67 -1.21
Amazon.com AMZN 1460.17 0.08
Amount
Payable /
Amount
Payable /
CH Robinson CHRW 92.59 0.23 DrPepperSnap DPS 119.69 0.89 Humana
HUM 297.39 3.44 MichaelKors KORS 66.91 -0.78
Ambev
ABEV 6.61 -0.08
DBX 28.64 -0.30
Company
Symbol Yld % New/Old Frq
Record
Company
Symbol Yld % New/Old Frq
Record
CIT Group CIT 52.90 0.38 Dropbox
JBHunt
JBHT 117.78 -0.63 MicroFocus MFGP 17.85 -0.14
Amdocs
DOX 66.63 -0.19
DukeEnergy
DUK
78.89
0.67
RNST
Renasant
1.7 .20 /.19 Q
Jun30 /Jun16
CME Group CME 161.08 -0.52
HuntingtonBcshs HBAN 15.06 0.21 MicrochipTech MCHP 82.98 0.54 Increased
Amerco
UHAL 345.55 4.08
DukeRealty
DRE
25.96
-0.12
SSB
CMS Energy CMS 45.86 0.11
1.6 .34 /.33 Q May18 /May11
South State Corp.
HuntingIngalls HII 252.50 -3.28 MicronTech MU 47.60 0.49
Ameren
AEE 57.21 0.01
E
38.80 -0.11
BOH 2.8
Bank of Hawaii
.60 /.52 Q
Jun14 /May31 SunTrust Banks Pfd A
CNA Fin
CNA 49.16 -0.41 ENI
STIpA 4.2 .2556 /.25 Q
Jun15 /May31
Huntsman HUN 29.60 -0.15 Microsemi MSCC 64.66 0.36
AmericaMovil AMX 18.64 -0.01 CNOOC
BHB 2.7 .20 /.1867 Q
Jun14 /May14 Travelers Cos
Bar Harbor Bankshares
CEO 164.19 0.06 EOG Rscs EOG 115.40 0.81 HyattHotels H
TRV 2.3
.77 /.72 Q
Jun29 /Jun08
Microsoft
MSFT
92.31
-0.81
78.02
0.51
AmericaMovil A AMOV 18.48 -0.04 CPFLEnergia CPL 13.61 -0.17 EPAM Systems EPAM 112.83 -1.22
BBT 2.8 .375 /.33 Q
Jun01 /May11 UGI
UGI 2.2
.26 /.25 Q
Jul01 /Jun15
IAC/InterActive IAC 157.43 -0.06 MidAmApt MAA 89.72 -0.15 BB&T Corp
AmerAirlines AAL 45.25 -0.44 CRH
EQT 46.95 0.30
CRH 35.53 0.97 EQT
CHFN
1.5 .085 /.08 Q May24 /May10 Wynn Resorts
WYNN
MIDD 126.23 0.43 Charter Financial
ICICI Bank IBN 8.31 -0.17 Middleby
1.6 .75 /.50 Q May29 /May17
AEP
AEP 69.09 0.21 CSX
CSX 59.99 0.80 E*TRADE ETFC 59.56 0.06 IdexxLab
CMA 1.4
Q
MitsubishiUFJ
MUFG
6.82
0.01
IDXX
194.61
0.76
.34
/.30
Jul01
/Jun15
Comerica
Inc
AmerExpress AXP 98.78 -1.66 CVS Health CVS 67.73 1.13 EastWestBncp EWBC 66.08 -0.53
IHSMarkit INFO 48.77 -0.34 MizuhoFin MFG 3.66 0.01 Costco Wholesale
COST
1.2 .57 /.50 Q May25 /May11 Foreign
AmericanFin AFG 114.14 0.31 CabotOil
COG 23.17 -0.09 EastmanChem EMN 105.15 -0.15 ING Groep ING 16.98 -0.09 MobileTeleSys MBT 10.49 0.14
NTB
Q May15 /May04
3.1
.38
FCF 2.4
First Commonwealth Fincl
.09 /.08 Q May18 /May04 Bank of Butterfield
AIG
AIG 55.40 0.31 CadenceDesign CDNS 39.56 -0.53 Eaton
ETN 76.73 0.80
t
Invesco
IVZ 30.74 0.09 MohawkInds MHK 227.12 -0.13
.5625 Q May14 /May05
FFIN
AmerTowerREIT AMT 135.73 -1.23 CaesarsEnt CZR 11.50
1.7 .21 /.19 Q
Jul02 /Jun15 Dynagas LNG 9% Pfd. A DLNGpA 8.6
... EatonVance EV 54.98 0.01 IPG Photonics IPGP 214.09 -3.85 MolsonCoors B TAP 71.91 0.22 First Fincl Bankshares
QSR
Q
3.3
.45
Jul03 /May15
Restaurant
Brands
Intl
AmerWaterWorks AWK 84.75 -0.02 CamdenProperty CPT 84.35 -0.15 eBay
HBCP
EBAY 40.97 -0.21
1.5 .17 /.15 Q May18 /May07
Home Bancorp
IQVIA
IQV 96.49 -0.25 MolsonCoors A TAP.A 73.00 -2.03
Ameriprise AMP 141.44 -1.22 CampbellSoup CPB 41.51 0.43 Ecolab
ECL 145.17 -1.08
IBM 4.3 1.57 /1.50 Q
Jun09
/May10
IBM
Special
MOMO 34.30 -0.76
IRSA Prop IRCP 45.62 -0.23 Momo
AmerisourceBrgn ABC 91.43 1.29 CIBC
EC 21.76 -0.22
MET 3.5
.42 /.40 Q Jun13 /May07 WVS Financial
CM 86.30 0.32 Ecopetrol
WVFC 2.0
IcahnEnterprises IEP 63.31 -0.78 Mondelez MDLZ 39.68 -0.09 MetLife
.04
May17 /May07
Ametek
AME 71.95 0.13 CanNtlRlwy CNI 76.60 1.67 EdisonInt
EIX 64.84 0.07
NEP 4.0 .42 /.405 Q May15 /May07
Monsanto
MON 124.68 -0.06 NextEra Energy Partners
Icon
ICLR
117.57
0.23
Amgen
AMGN 174.83 2.89 CanNaturalRes CNQ 36.25 0.56 EdwardsLife EW 129.52 -5.15
PACW
Q
KEY:
A:
annual;
M:
monthly;
Q:
quarterly;
r:
revised;
SA:
semiannual;
4.6
.60
/.50
May31
/May21
PacWest
Bancorp
IEX 137.84 -0.53 MonsterBev MNST 54.41 -1.32
Amphenol APH 82.88 0.11 CanPacRlwy CP 180.52 4.36 ElectronicArts EA 116.68 -1.91 IDEX
MCO 162.54 2.08 Peoples Bancorp (Ohio) PEBO 3.0 .28 /.26 Q May21 /May07
IllinoisToolWks ITW 151.60 1.95 Moody's
S2:1: stock split and ratio; SO: spin-off.
AnadarkoPetrol APC 66.83 0.74 Canon
CAJ 34.48 -1.01 EmersonElec EMR 68.71 0.41 Illumina
ILMN231.19 -7.31 MorganStanley MS 52.04 -1.03
AnalogDevices ADI 87.77 0.12 CapitalOne COF 92.76 -4.66 EnbridgeEnPtrs EEP 10.54 0.28
MOS 27.00 0.91
ImperialOil IMO 29.91 0.66 Mosaic
Andeavor ANDV 120.09 1.17 CardinalHealth CAH 63.57 1.21 t Enbridge
ENB 29.27 -0.12
Incyte
INCY 62.99 0.64 MotorolaSol MSI 109.42 -0.22
AndeavorLog ANDX 49.09 1.49 Carlisle
ECA 12.70 0.08
CSL 107.94 8.18 Encana
MULE 44.15 -0.04
52-Wk %
52-Wk %
Infosys
INFY 17.21 0.12 MuleSoft
AB InBev BUD 103.23 0.75 Carlyle
CG 20.15 -0.50 EnelAmericas ENIA 11.48 -0.10 Ingersoll-Rand IR 85.16 4.77 Mylan
Stock
Sym Hi/Lo Chg Stock
Sym Hi/Lo Chg
MYL 38.94 -1.31
AnnalyCap NLY 10.32 0.02 CarMax
ENIC 6.33 -0.05
KMX 62.09 0.77 EnelChile
NICE
NICE
93.97
-1.31
Ingredion
INGR 125.52 0.93
AnteroResources AR 19.21 -0.14 Carnival
71.95 -0.3
FortBrandsHome FBHS 54.79 1.6 Procter&Gamble PG
CCL 66.07 0.53 EnelGenChile EOCC 23.22 0.02 Intel
INTC 51.38 -0.07 NRG Energy NRG 31.09 0.10 The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
GAMCOGlbGoldPfB GGNpB 22.50 -1.1 Prothena
PRTA 10.43 -0.9
Anthem
ANTM 238.84 13.84 Carnival
EGN 66.92 0.63
CUK 66.33 0.30 Energen
NVR 3101.20 32.11 American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low
0.03 11.1 Qualcomm
GabelliUtilityRt GUTr
QCOM 48.87 -0.4
Aon
AON 141.97 -0.36 Caterpillar CAT 145.19 0.75 EnergyTransferEq ETE 15.63 0.12 InteractiveBrkrs IBKR 72.01 -0.76 NVR
ICE 73.21 0.18 NXP Semi NXPI 101.19 -0.52 in the latest session. % CHG-Daily percentage change from the previous trading session.
25.28 -5.1 Qudian
9.92 -2.0
Goodyear
GT
QD
Apache
APA 41.00 0.36 CboeGlobalMkts CBOE 106.27 0.72 EnergyTransfer ETP 18.20 0.20 ICE
s Nasdaq
24.19 -1.9 REV
HealthcareAmer HTA
REVG 17.57 -0.2
NDAQ 87.79 1.54
ApartmtInv AIV 39.35 0.08 Celanese A CE 109.56 0.20 Entergy
ETR 79.42 -0.68 InterContinentl IHG 62.00 -0.10
Wednesday, April 25, 2018
0.28 -9.4 Ramco-Gershenson RPT
11.34 -0.5
Hemispherx
HEB
NationalGrid
NGG
56.52
0.22
IBM
IBM
145.94
0.38
ApolloGlbMgmt APO 28.10 -0.32 Celgene
CELG 89.20 0.06 EnterpriseProd EPD 27.02 0.52 IntlFlavors IFF 140.25 1.92 NatlInstruments NATI 48.71 -0.47
26.55 -0.6
52-Wk %
52-Wk %
52-Wk % HershaHospPfdC HTpC 23.82 -0.6 ReinsuranceGrpDeb RZA
Apple
AAPL 163.65 0.71 Cemex
EFX 119.84 0.71
CX
6.62 0.01 Equifax
25.52 -0.1
Sym Hi/Lo Chg Stock
Sym Hi/Lo Chg Stock
Sym Hi/Lo Chg HoustonAmEner HUSA 0.22 -7.4 ReinsuranceGrpDeb RZB
IP
53.48 0.72 NatlOilwell NOV 38.28 0.31 Stock
ApplMaterials AMAT 49.14 0.42 CenovusEnergy CVE 9.96 0.46 Equinix
EQIX 410.21 0.68 IntlPaper
0.28 -10.0
Hubbell
HUBB 105.10 -1.3 ReShapeLifesci RSLS
Interpublic IPG 24.35 0.21 NatlRetailProp NNN 37.41 -0.15
Renasant
RNST 46.95 0.1 BioTimeWt
BTX.WS 0.05 -1.7 Hudson
Aptargroup ATR 93.15 -0.03 Centene
14.23 -3.0 RetailOppor
16.18 -1.3
HUD
ROIC
CNC 109.29 1.55 EquityLife ELS 87.83 0.16 Intuit
INTU 176.37 -2.20 NektarTherap NKTR 82.59 -1.92
61.40 5.3 Bitauto
RobertHalf
RHI
18.47 -1.4 InfoSonics
BITA
3.68 -13.3 ReToEcoSol
5.40 1.5
IFON
RETO
Aptiv
APTV 85.21 -0.64 t CenterPointEner CNP 24.92 -0.44 EquityResdntl EQR 60.31 -0.40
RockyBrands RCKY 24.00 13.6 BlinkChargingWt BLNKW 0.19 -16.7 IntegratedMedia IMTE
NTAP 67.25 -0.60
IntuitiveSurgical ISRG 437.96 1.49 NetApp
2.03 -5.0 RevenHousingREIT RVEN
2.37 -1.1
AquaAmerica WTR 34.52 -0.08 CentraisElBras EBR 5.21 0.02 Ericsson
ERIC 7.69
...
AMN Healthcare AMN 68.20 0.9 SierraBancorp BSRR 29.55 -1.1
1.31 -9.4 Intellipharm
BlinkCharging BLNK
t Netease
NTES
249.07
-5.03
InvitatHomes
INVH
22.97
0.09
0.37
-11.6
1.05 -7.1
SCYNEXIS
IPCI
SCYX
Aramark
ARMK 38.11 0.41 CenturyLink CTL 18.50 0.57 EssexProp ESS 236.65 -0.98
AmerCarMart CRMT 53.85 0.7
1.71 -0.7 InVivoTherap
NFLX 305.76 -1.26 AmericoldRealty COLD 20.26 0.6 StateAutoFin STFC 30.94 0.6 BridgelineDigital BLIN
6.80 -17.0 SaulCentersPfdD BFSpD 20.93 -2.2
IonisPharma IONS 43.98 -1.35 Netflix
NVIV
ArcelorMittal MT 33.73 -0.92 Cerner
CERN 58.34 0.40 EsteeLauder EL 146.49 -0.38
StateBankFin STBZ 32.54 -0.1 Briggs&Stratton BGG
19.54
-1.5
0.64
0.2
0.42 ...
JMU
SenesTech
JMU
SNES
Neurocrine
NBIX
78.16
-0.27
IQ
18.01 -0.52
8.45 1.7 TCF Fin Wt
Attunity
ATTU
ArchCapital ACGL 80.62 -0.24 t CharterComms CHTR 300.35 -0.93 EverestRe RE 240.44 -4.21 iQIYI
TCF.WS 8.41 9.8 BrightSphereNts31 BSA
22.01 -0.4 JerniganCapPfdB JCAPpB 22.19 -4.3 SensientTech SXT
65.56 2.3
ArcherDaniels ADM 45.84 0.68 t CheckPoint CHKP 96.33 -6.58 EversourceEner ES 59.37 -0.07 IronMountain IRM 33.78 0.02 NewOrientalEduc EDU 88.47 -1.80 BSB Bancorp BLMT 33.20 0.9 TCF Fin
25.32 1.4 Bristol-Myers BMY
TCF
50.56 0.3 JohnsonControls JCI
32.89
1.6
145.78
-0.7
SimonProperty
SPG
IsraelChemicals ICL
4.49 0.06 NY CmntyBcp NYCB 12.04 -0.92 BankofButterfield NTB
48.76 -0.2 TownSports
9.35 1.1 BrookfieldRenew BEP
CLUB
Arconic
ARNC 22.15 0.17 Chemours CC 50.92 -0.09 Exelixis
29.74 -1.4 KeyCorpPfdE
EXEL 20.83 0.43
KEYpI 27.15 -0.5 Skyworks
SWKS 86.31 ...
4.31 7.0 Transcat
ItauUnibanco ITUB 14.50 -0.13 NewellBrands NWL 27.18 0.41 BaytexEnergy BTE
TRNS 17.45 -3.2 CEVA
CEVA 33.60 -0.6 KimcoRealtyPfdL KIMpL 20.52 -0.5 SocketMobile SCKT
AristaNetworks ANET 253.02 0.96 CheniereEnergy LNG 57.80 1.25 Exelon
EXC 39.16 -0.02
2.65 2.8
79.74 2.4 US PhysTherapy USPH 95.20 -2.0 CPI Card
WRB
NewmontMin NEM 40.52 -0.53 Berkley
2.36 2.9 KimcoRealtyPfdM KIMpM 20.56 -1.0 Sohu.com
PMTS
ArrowElec ARW 75.96 0.37 CheniereEnerPtrs CQP 30.12 0.10 Expedia
SOHU 26.70 -9.9
EXPE 108.44 -2.34
NewsCorp A NWSA 15.88 -0.02 Cal-MaineFoods CALM 50.45 0.4 Umpqua
UMPQ 24.73 -0.2 Caesarstone
18.25 -1.3 KimcoRealtyPfdI KIMpI 23.87 -1.3 Sphere3D
CSTE
0.44 -3.7
ANY
AspenTech AZPN 85.52 0.41 CheniereEnHldgs CQH 27.40 0.04 ExpeditorsIntl EXPD 64.25 0.55
25.60 6.4 UnitedFire
CaliforniaRscs
CRC
UFCS 50.47 -0.2 CaseysGenStores CASY 96.18 0.8 KimcoRealtyPfdJ KIMpJ 21.59 -2.3 Starrett A
NewsCorp B NWS 16.15
...
6.00 -1.4
SCX
AstraZeneca AZN 35.29 0.17 Chevron
ExpressScripts
ESRX
76.52
1.03
JD.com
JD
35.88
0.01
CVX 122.72 0.18
Cannae
CNNE 20.83 -1.5 UnivInsurance UVE
33.95 2.6 CedarRealtyPfB CDRpB 22.26 -1.9 KimcoRealtyPfdK KIMpK 22.16 -1.2 StateStreetPfdG STTpG 25.50 -0.7
AthenaHealth ATHN 142.47 -1.60 ChinaEastrnAir CEA 38.51 1.81 ExtraSpaceSt EXR 86.28 -0.42 JPMorganChase JPM 109.99 -0.42 NextEraEnergy NEE 160.33 -1.84 CareDx
9.51 1.3 UsanaHealth
CDNA
USNA 110.30 11.2 CedarRealtyPfC CDRpC 19.30 -2.6 KimcoRealty
Nike
NKE
66.67
-0.30
13.16
-0.5
17.28
-1.5
SteelPartners
KIM
SPLP
Athene
ATH 49.20 -0.06 ChinaLifeIns LFC 13.89 0.04 ExxonMobil XOM 79.50 1.15 JackHenry JKHY 119.25 -1.43
26.55 0.6 VASCO
CitizensFirst
CZFC
15.60 2.0 Celyad
VDSI
CYAD 29.00 -2.2 LejuHoldings
1.02 0.9 SteelPtrsPfdA SPLPpA 19.78 -0.2
LEJU
NI
23.91 -0.02 ConnecticutWater CTWS 68.45 -0.3
Atlassian
TEAM 55.17 -2.04 ChinaLodging HTHT 132.16 -4.10 F5Networks FFIV 157.07 -0.07 JacobsEngg JEC 58.64 -0.45 NiSource
37.45 26.8 CenterPointEner CNP
Vicor
VICR
24.81 -1.7 LendingClub
0.84 -9.8
2.69 -15.0 SummerInfant SUMR
LC
NobleEnergy
NBL
33.86
0.59
DMC Global
BOOM 31.35 5.2 WPX Energy
17.16 2.4 CentralPuerto CEPU 15.48 -1.9
AtmosEnergy ATO 85.31 0.02 ChinaMobile CHL 46.50 -0.57 FMC
WPX
FMC 80.56 -0.12 JamesHardie JHX 17.83 0.09
1.58 -4.2
LevelOneBncp LEVL 28.43 0.1 SynergyPharm SGYP
Nokia
NOK 5.92 -0.01 Denny's
DENN 17.13 2.7 WPX Energy Pfd WPXP 71.33 0.4 CescaTherap
Autodesk ADSK 123.97 0.29 ChinaPetrol SNP 95.63 -0.97 Facebook
FB 159.69
... JanusHenderson JHG 32.46 0.26
1.36 -7.1 LibertyBroadbandC LBRDK 80.19 0.3 TarenaIntl
KOOL
9.78 -5.5
TEDU
NomuraHoldings NMR 5.85 -0.02 ElevenBiotherap EBIO
2.46
6.8
40.91 1.5 CharterComms CHTR 295.34 -0.3
WhitingPetrol
WLL
Autohome ATHM 93.08 -3.10 ChinaSoAirlines ZNH 50.95 1.63 FactSet
FDS 193.21 0.12 JazzPharma JAZZ 154.67 0.16
24.08 -1.1
LibertyBroadbandA LBRDA 79.81 0.3 TataMotors
TTM
Nordson
NDSN 132.72 -2.49 EnterpriseFinSvcs EFSC 50.85 1.8 WildHorseResource WRD 25.43 0.4 CheckPoint
CHKP 93.76 -6.4 LifewayFoods LWAY
Autoliv
ALV 145.95 -2.81 ChinaTelecom CHA 46.44 -0.23 Fastenal
5.28 3.5 TempurSealy
41.10 1.6
TPX
FAST 49.57 0.46 JetBlue
JBLU 19.17 -0.36
WLFC 35.47 2.2 ChinaRapidFin XRF
Nordstrom JWN 48.73 0.84 EstreAmbiental ESTR 12.00 9.5 WillisLease
3.83 -6.5 LightpathTech LPTH
1.97 -2.9 Tenneco
49.06 1.3
TEN
ADP
ADP 116.70 0.38 ChinaUnicom CHU 13.52 -0.15 FederalRealty FRT 112.16 0.54 J&J
JNJ 126.76 0.57
WWE 40.18 2.9 ChipMOSTechs IMOS 13.59 -2.0
8.80 4.8 WW Ent
NorfolkSouthern NSC 145.96 10.99 EvolutionPetrol EPM
0.40 3.7
MTS Systems MTSC 42.00 1.2 The9
NCTY
AutoZone AZO 610.57 7.85 Chipotle
FDX 246.90 1.34 t JohnsonControls JCI 33.79 0.52
CMG 339.52 6.42 FedEx
4.10
4.6
Zedge
ZDGE
87.53
0.6
Exponent
EXPO
CirrusLogic
CRUS 34.78 -0.3 MagneGas
NorthernTrust NTRS 106.83 -0.21
1.33 -3.6
MNGA 0.74 -1.1 Tintri
TNTR
Avalonbay AVB 161.79 -0.11 Chubb
Ferrari
RACE
122.82
0.07
JonesLang
JLL
169.05
-3.89
CB 137.26 1.16
2.55 19.1
EyePointPharm EYPT
CitigroupWt19 C.WS.A 0.02 -16.7 MenloTherap MNLO 6.99 -1.2 TitanPharm
0.91 -3.1
TTNP
NorthropGrum
NOC
332.62
-8.90
Avangrid
AGR 51.00 -0.77 ChunghwaTel CHT 37.34 -0.37 FiatChrysler FCAU 23.48 -0.25 JuniperNetworks JNPR 24.29
...
60.20 2.5
FCB Financial FCB
23.35 0.2 MercurySystems MRCY 32.18 -18.7 trivago
ClearwaterPaper CLW
4.71 -26.2
TRVG
NorwegCruise
NCLH
56.38
0.27
AveryDennison AVY 106.67 1.27 Church&Dwight CHD 45.89 0.43 FibriaCelulose FBR 19.20 0.07 KAR Auction KAR 52.65 0.09
FarmersBancp FMAO 45.64 6.3
44.83
-2.5
ClovisOncology
CLVS
221.96
-0.1
56.68
0.5
MohawkInds
US
Concrete
MHK
USCR
Novartis
NVS 76.42 -0.57 FarmersCapBk FFKT 50.75 0.3 ACADIA Pharm ACAD 14.51 -21.9
AveXis
AVXS 212.48 1.88 Cigna
KB 55.56 -0.89
CI 171.70 0.41 FidNatlFin FNF 37.23 -0.36 KB Fin
41.91 -1.5 MonmouthRE PfdC MNRpC 22.82 -0.4 UltraClean
KO
UCTT 15.36 -0.7
ADOMANI
ADOM 0.71 -2.8 Coca-Cola
NovoNordisk
NVO
46.88
-0.20
51.05 0.7
FirstFinBkshs FFIN
AxaltaCoating AXTA 30.74 1.04 CimarexEnergy XEC 101.39 0.80 FidNatlInfo FIS 94.11 -0.66 KKR
KKR 20.75 -0.40
63.60
-0.9
Coca-Cola
Femsa
KOF
25.55
-0.5
2.36
0.8
MorganStanleyPfdK
UltraPetroleum
MSpK
UPL
24.47 -1.4
AT&T Nts 2066 TBB
NUE 63.18 0.92 GranTierraEner GTE
3.25 ...
BB&T
BBT 53.79 -0.23 CincinnatiFin CINF 74.82 -0.13 FifthThirdBncp FITB 33.54 0.29 KLA Tencor KLAC 98.65 -0.91 Nucor
COHR 159.65 -4.0 MorganStanDepPfdF MSpF 27.34 -0.3 UltraparPart
17.15 0.1
UGP
15.61 -3.9 Coherent
AVX
AVX
Nutanix
NTNX 50.61 -1.90 GulfmarkOffshore GLF
35.40 2.0
CODIpB 20.92 -0.9 MotorcarParts MPAA 18.64 -1.3 UnivDisplay
BCE
BCE 42.15 0.26 Cintas
OLED 87.25 -3.1
KT 13.27 -0.11
5.89 -4.8 CompassPfd
AXT
AXTI
CTAS 171.19 -0.31 FirstAmerFin FAF 54.63 0.24 KT
Nutrien
NTR
46.35
0.73
67.42
2.6
Hess
Pfd
HESpA
15.40 -3.7 NN
19.51 -0.6
NNBR 20.45 -0.5 UrbanEdgeProp UE
BHPBilliton BHP 47.25 -0.32 CiscoSystems CSCO 43.71 -0.03 t FirstData
58.58 0.5 CompassDiversif CODI
AdvEnergyInds AEIS
FDC 14.99
... KSCitySouthern KSU 109.05 0.68
6.70 2.3 AirMedia
NVIDIA
NVDA 216.66 -4.54 HighPointResources HPR
27.23 -2.3 NatlRetailPropPfE NNNpE 23.66 -0.9 Urstadt Pfd G UBPpG 24.85 -0.6
CTB
0.67 1.3 CooperT&R
AMCN
BHPBilliton BBL 42.64 -0.20 Citigroup
K
60.95 0.49
C
69.36 0.24 FirstHorizonNatl FHN 18.68 -0.03 Kellogg
HomeTownBkshs HMTA 12.00 2.9 AlcentraCapital ABDC
CorEnergyInfrPf CORRpA 24.50 -0.8 NatlStoragePfdA NSApA 23.66 0.2 Valvoline
20.63 0.2
VVV
5.90
-8.1
BOK Fin
BOKF 105.14 1.62 CitizensFin CFG 42.52 0.25 FirstRepBank FRC 93.61 -0.41 KeyCorp
KEY 20.23 0.16
InfinityPropCas IPCC 124.30 -0.2 AllianceMMA AMMA 0.32 -3.4 Ctrip.com
CTRP 40.79 -1.0 NavideaBiopharm NAVB
0.27 -1.2 Ventas
46.55 ...
VTR
BP
BP 44.17 -0.07 CitrixSystems CTXS 96.58 -0.02 FirstSolar FSLR 73.58 -0.49 KeysightTechs KEYS 53.53 -0.08
IntegraLifeSci IART 59.30 7.9 Amarin
25.37 -0.4 Net1UEPS
8.05 -1.0 VictoryCapital VCTR 10.30 0.1
UEPS
AMRN 2.66 -3.9 DTE EnergyDebF DTY
BRF
BRFS 7.42 -0.04 Clorox
... Intelsat
CLX 116.42 1.46 FirstEnergy FE 34.16 -0.13 KilroyRealty KRC 69.93 0.50 OGE Energy OGE 32.80
10.93 2.1 AmeriWt
I
0.83
-1.1
DasekeWt
DSKEW
Netease
2.50 ...
NTES 248.45 -2.0 VirnetX
VHC
AMRHW 0.25 10.5
BT Group BT 16.85 -0.08 t Coca-Cola KO 42.43 -0.64 Fiserv
OKE 59.60 0.21 Morningstar
FISV 70.16 -0.74 KimberlyClark KMB 102.30 1.90 ONEOK
MORN 105.62 1.9 AmeriHoldings AMRH 1.21 -5.2 Daseke
8.32 -1.3 NewYorkMtgPfdD NYMTN 22.80 -0.4 VivoPowerIntl VVPR
DSKE
1.44 -4.9
BWX Tech BWXT 68.89 -0.40 Coca-Cola Euro CCE 39.77 -0.46 FleetCorTech FLT 201.29 -4.47 KinderMorgan KMI 16.26 -0.01 OReillyAuto ORLY 227.67 3.04 MyersIndustries MYE 24.55 0.8 AmHomes4RentPfdG AMHpG 22.45 -1.4 DigitalRealtyPfdC DLRpC 25.97 -0.8 NY MtgPfdC NYMTO 22.97 -1.1 VornadoPfdK VNOpK 23.64 -0.9
NDAQ 87.97 1.8 AmHomes4RentPfdE AMHpE 24.53 -1.5 DonegalGroup A DGICA 13.28 -2.6 OnconovaTherap ONTX
Baidu
BIDU 231.41
... t Coca-Cola Femsa KOF 64.22 -0.59 Flex
FLEX 16.59 -0.17 Knight-Swift KNX 42.12 0.12 OccidentalPetrol OXY 77.36 0.02 Nasdaq
0.45 -10.6 VornadoPfdL
VNOpL 22.37 -0.7
1.57 -1.2 OnconovaTherapWt ONTXW 0.17 -42.2 VornadoPfdM VNOpM 21.57 -0.6
DCAR
BakerHughes BHGE 35.11 0.48 Cognex
KSS 60.00 0.77 OldDomFreight ODFL 141.81 -0.55 NorthernTechsIntl NTIC 29.15 ... AmHomes4RentPfdF AMHpF 22.59 -3.2 DropCar
CGNX 47.24 -1.15 FlirSystems FLIR 52.18 1.11 Kohl's
19.45 1.2 VulcanMatls
VMC 109.69 0.7
3.68 -3.6 EPR PropPfdG EPRpG 21.60 -1.7 Owens-Illinois OI
Ball
BLL 40.22 0.06 CognizantTech CTSH 80.91 0.11 Flowserve FLS 46.00 0.39 KoninklijkePhil PHG 42.24 0.02 OldRepublic ORI 21.23 -0.06 OhioValleyBanc OVBC 46.65 2.2 AmiraNatureFoods ANFI
3.67 -0.7 PDF Solutions PDFS 10.80 -1.2 WRBerkleyDeb58 WRBpE 23.50 -0.6
EXFO
BancoBilbaoViz BBVA 7.95
... ColgatePalm CL
FLR 59.64 -0.09 KoreaElcPwr KEP 16.62 -0.39 Omnicom OMC 74.38 1.08 ParkeBancorp PKBK 24.55 1.7 ApolloGlPfdB APOpB 23.87 -0.2 EXFO
66.41 -0.22 Fluor
PeoplesBncpOH PEBO 38.03 -1.3 ApolloGlMgmtPfdA APOpA 23.98 -0.3 Emcore
4.40 -3.3 PSBusParksPfdY PSBpY 22.16 -1.8 WRBerkleyDeb56 WRBpC 24.45 -0.4
EMKR
BancodeChile BCH 101.04 -0.09 Comcast A CMCSA 34.26 0.91 FomentoEconMex FMX 91.62 -0.26 KraftHeinz KHC 56.85 0.32 ON Semi
ON 23.12 -0.19
PivotalSoftware PVTL 18.83 -1.2 ApolloInvNts2043 AIY
29.00 -0.4 PSBusParksPfdW PSBpW 22.23 -2.2 WashingtonPrmPfI WPGpI 19.11 2.4
ENB
25.16 ... Enbridge
BancoMacro BMA 100.60 -6.00 Comerica
11.11 0.15 Kroger
KR 25.63 0.25 OpenText OTEX 35.04 0.11 PlumasBancorp PLBC 28.16 3.7
CMA 96.07 -0.20 FordMotor F
5.54 -5.6 ParatekPharma PRTK 10.10 7.8 WeingartenRealty WRI
FAT
25.67 -1.6
12.74 -0.8 FAT Brands
ArmstrongFlooring AFI
BcoSantChile BSAC 33.10 -0.53 CommerceBcshrs CBSH 64.17 -0.05 Fortinet
ORCL 45.75 0.22 Popular
FTNT 54.80 -1.27 Kyocera
KYO 56.67 0.38 Oracle
BPOP 47.46 2.1 AssdBancPfdC ASBpC 25.28 -0.4 FarmerBros
FARM 28.45 -1.0 PepsiCo
100.85 -0.3 WellsFargoPfdQ WFCpQ 25.60 0.2
PEP
BcoSantMex BSMX 7.31 -0.13 CommScope COMM 40.62 0.07 Fortis
FTS 32.93 -0.23 LATAMAirlines LTM 15.23 -0.20 Orange
ORAN 18.07 -0.02 ProfireEnergy PFIE
4.09 7.4 AssurGrMunNt AGOpE 24.81 -0.9 FedRealtyInvPfdC FRTpC 21.52 -2.2 Pier 1
2.15 -7.1 Welltower
PIR
WELL 49.58 -1.0
BancoSantander SAN 6.57 0.03 SABESP
FTV 72.20 -0.85 L Brands
LB 35.46 0.56 OrbitalATK OA 132.07 -0.14 PureAcquisition PACQU 10.20 0.3 BMC Stock
SBS 10.00 0.01 Fortive
14.73 ... PlatinumGrpMtls PLG
0.21 -5.7 ZionsBancorpNts ZBK
27.56 -0.3
FDC
BMCH 17.30 -1.1 FirstData
BanColombia CIB 47.00 -0.99 ConagraBrands CAG 37.15 0.33 t FortBrandsHome FBHS 56.03 0.90 LG Display LPL 11.28 0.08 Orix
IX
88.12 0.66 QualityCareProp QCP
22.91 9.1 Biocept
1.05 -6.7 PlymouthIndREIT PLYM 16.20 0.7 ZionsBncpPfdA ZBpA 23.28 -1.1
0.22 -3.7 FiveStarSrLiving FVE
BIOC
Franco-Nevada FNV
FranklinRscs BEN
FreeportMcM FCX
FreseniusMed FMS
70.38
33.58
15.37
49.52
G H I
A B C
-0.60
0.27
-0.71
-0.86
LINE
LN 35.61
LKQ
LKQ 37.59
L3 Tech
LLL 202.00
LabCpAm
LH 172.71
LamResearch LRCX 186.67
LamarAdv LAMR 62.92
LambWeston LW 65.85
LasVegasSands LVS 72.34
Lazard
LAZ 51.90
Lear
LEA 188.49
Leidos
LDOS 65.52
Lennar A
LEN 53.91
Lennar B
LEN.B 43.45
LennoxIntl LII 194.33
LeucadiaNatl LUK 24.46
t LibertyBroadbandC LBRDK 81.59
t LibertyBroadbandA LBRDA 81.11
LibertyGlobal B LBTYB 32.55
LibertyGlobal A LBTYA 32.51
LibertyGlobal C LBTYK 31.39
LibertyFormOne A FWONA 28.58
LibertyFormOne C FWONK 30.07
LibertyBraves A BATRA 22.47
LibertyBraves C BATRK 22.56
LibertySirius C LSXMK 41.36
LibertySirius A LSXMA 41.53
LibertyProperty LPT 40.02
EliLilly
LLY 81.14
LincolnNational LNC 71.90
LiveNationEnt LYV 39.47
LloydsBanking LYG 3.63
LockheedMartin LMT 329.50
Loews
L
51.54
LogitechIntl LOGI 36.93
LogMeIn
LOGM 117.25
Lowe's
LOW 81.48
lululemon LULU 97.85
LyondellBasell LYB 105.39
W X Y Z
T U V
M N
D E F
R S
Dividend Changes
Dividend announcements from April 25.
New Highs and Lows | WSJ.com/newhighs
Highs
J K L
Lows
O P Q
Mutual Funds
Data provided by
Fund
SrsIntlVal
TotalBond
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least
$500 million each.
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
Wednesday, April 25, 2018
Net YTD
Net YTD
NAV Chg % Ret Fund
NAV Chg % Ret Fund
American Century Inv
44.67
Ultra
American Funds Cl A
32.74
AmcpA p
40.01
AMutlA p
BalA p
26.71
BondA p
12.47
60.51
CapIBA p
51.37
CapWGrA
56.38
EupacA p
61.65
FdInvA p
51.20
GwthA p
HI TrA p
10.17
ICAA p
39.86
22.74
IncoA p
43.94
N PerA p
46.75
NEcoA p
66.57
NwWrldA
56.39
SmCpA p
TxExA p
12.72
WshA p
45.29
Baird Funds
10.49
AggBdInst
10.84
CorBdInst
BlackRock Funds A
19.54
GlblAlloc p
BlackRock Funds Inst
EqtyDivd
22.52
19.66
GlblAlloc
StratIncOpptyIns 9.87
Bridge Builder Trust
9.82
CoreBond
+0.05
+0.04
+0.14
+0.01
-0.02
-0.01
...
-0.21
+0.09
...
-0.03
+0.09
-0.03
-0.04
-0.02
-0.34
-0.18
-0.04
+0.11
-0.05
-0.05
...
...
...
-0.01
-0.02
Dimensional Fds
2.9 5GlbFxdInc
10.80
...
31.65 -0.17
EmgMktVa
4.0 EmMktCorEq 23.05 -0.08
-1.5 IntlCoreEq
14.61 -0.04
-1.3 IntlVal
20.79 -0.06
-2.6 IntSmCo
21.37 -0.07
-2.9 IntSmVa
22.93 -0.08
0.9 US CoreEq1
22.70 +0.04
0.3 US CoreEq2
21.44 +0.03
-0.7 US Small
36.03
...
3.4 US SmCpVal 38.03 -0.04
-0.2 US TgdVal
24.83
...
-1.0 USLgVa
38.60 +0.17
-2.0 Dodge & Cox
1.8 Balanced
104.43 -0.05
4.8 GblStock
13.63 -0.02
-0.5 Income
13.41 -0.02
1.1 Intl Stk
45.85 -0.21
-1.6 Stock
200.04 +0.08
-0.4 DoubleLine Funds
CoreFxdIncmI 10.71 -0.01
-2.7 TotRetBdI
10.40 -0.01
-2.5 Edgewood Growth Instituti
EdgewoodGrInst 31.37 -0.11
-0.8 Fidelity
92.28 +0.17
500IdxInst
-0.7 500IdxInstPrem 92.28 +0.17
-0.8 500IdxPrem 92.28 +0.17
0.1 ExtMktIdxPrem r 62.49 -0.13
IntlIdxPrem r 43.25 -0.14
-2.6 SAIUSLgCpIndxFd 14.18 +0.03
-0.6
1.4
-0.7
0.5
1.7
0.5
-0.2
-0.1
-0.4
0.4
0.3
-0.1
-0.9
-0.8
-1.7
-1.6
-1.0
-0.3
-1.7
-1.3
6.1
-0.7
-0.7
-0.7
0.8
0.3
-0.7
Net YTD
NAV Chg % Ret
75.75 +0.08 -0.5
TMktIdxF r
TMktIdxPrem 75.75 +0.09 -0.5
USBdIdxInstPrem 11.18 -0.02 -2.7
Fidelity Advisor I
32.18
Fidelity Freedom
16.45
FF2020
14.30
FF2025
17.95
FF2030
Freedom2020 K 16.43
Freedom2025 K 14.28
Freedom2030 K 17.93
Freedom2035 K 15.16
Freedom2040 K 10.65
Fidelity Invest
Balanc
23.62
89.73
BluCh
124.04
Contra
124.00
ContraK
CpInc r
10.10
DivIntl
39.37
184.76
GroCo
184.78
GrowCoK
7.66
InvGB
10.88
InvGrBd
LowP r
54.89
MagIn
106.06
112.22
OTC
23.27
Puritn
SrsEmrgMkt 21.02
SrsGroCoRetail 17.26
SrsIntlGrw
15.94
NwInsghtI
-0.04
2.6
-0.01
-0.02
-0.02
-0.02
-0.01
-0.02
-0.01
-0.01
-0.7
-0.7
-0.6
-0.7
-0.7
-0.6
-0.3
-0.4
...
-0.14
-0.23
-0.23
-0.03
-0.15
-0.71
-0.71
-0.02
-0.02
+0.11
-0.26
-0.49
-0.02
-0.17
-0.07
-0.04
-0.1
2.2
2.9
2.9
-0.8
-1.6
3.4
3.4
-2.6
-2.4
0.7
1.4
2.2
-0.3
-1.8
3.8
-1.3
Net YTD
NAV Chg % Ret Fund
10.72 -0.02
10.32 -0.02
First Eagle Funds
58.85 +0.13
GlbA
FPA Funds
34.48 -0.05
FPACres
FrankTemp/Frank Adv
2.28
...
IncomeAdv
FrankTemp/Franklin A
7.23 -0.03
CA TF A p
IncomeA p
2.30
...
RisDv A p
59.64 +0.15
FrankTemp/Franklin C
2.33
...
Income C t
FrankTemp/Temp A
GlBond A p
12.00 +0.04
27.00 -0.16
Growth A p
FrankTemp/Temp Adv
GlBondAdv p 11.95 +0.03
Harbor Funds
71.82 -0.09
CapApInst
67.48 -0.42
IntlInst r
Harding Loevner
NA
...
IntlEq
Invesco Funds A
10.84 +0.02
EqIncA
John Hancock Class 1
15.07 -0.03
LSBalncd
LSGwth
16.06 -0.02
John Hancock Instl
23.27 +0.04
DispValMCI
JPMorgan Funds
39.70 +0.20
MdCpVal L
JPMorgan R Class
CoreBond
11.24 -0.02
Lazard Instl
19.58 -0.14
EmgMktEq
Lord Abbett A
ShtDurIncmA p 4.19
...
Lord Abbett F
4.19
...
ShtDurIncm
Metropolitan West
10.32 -0.02
TotRetBd
10.32 -0.02
TotRetBdI
9.71 -0.02
TRBdPlan
MFS Funds Class I
Net YTD
NAV Chg % Ret Fund
0.3 ValueI
39.28 +0.13
-2.2 MFS Funds Instl
25.33 -0.09
IntlEq
-0.4 Oakmark Funds Invest
EqtyInc r
31.76 +0.02
-0.6 Oakmark
84.40 +0.05
28.32 -0.14
OakmrkInt
-1.7 Old Westbury Fds
14.35 -0.02
LrgCpStr
-2.3 Oppenheimer Y
-1.7 DevMktY
43.16 -0.10
-2.2 IntGrowY
43.42 -0.26
Parnassus Fds
-1.9 ParnEqFd
42.54 +0.15
PIMCO Fds Instl
2.0 AllAsset
NA
...
-1.0 ShortT
9.88
...
9.95 -0.02
TotRt
2.0 PIMCO Funds A
NA
...
IncomeFd
3.4 PIMCO Funds Instl
-0.1 IncomeFd
NA
...
PIMCO Funds P
NA IncomeP
NA
...
Price Funds
-0.7 BlChip
101.56 -0.13
EqInc
32.83 +0.13
-0.6 EqIndex
70.88 +0.13
-0.1 Growth
64.88 -0.05
HelSci
71.21 +0.19
-0.2 InstlCapG
38.82
...
18.54 -0.07
IntlStk
-1.4 IntlValEq
15.13 -0.04
MCapVal
30.81 +0.04
-2.4 MidCap
89.76 -0.16
9.17 -0.02
N Inc
-2.2 NHoriz
55.39 -0.28
OverS SF r
11.40 -0.03
-0.2 R2020
22.44 -0.03
17.54 -0.03
R2025
-0.2 R2030
25.90 -0.04
18.99 -0.02
R2035
-2.5 R2040
27.30 -0.04
-2.5 Value
36.65 +0.04
-2.4 PRIMECAP Odyssey Fds
AggGrowth r 47.26 -0.21
Net YTD
NAV Chg % Ret Fund
38.94 -0.08
-3.4 Growth r
31.72 -0.01
Stock r
-0.5 Principal Investors
13.89 -0.05
DivIntlInst
-1.3 Prudential Cl Z & I
14.04 -0.04
0.1 TRBdZ
-0.9 Schwab Funds
40.89 +0.07
S&P Sel
-0.8 TIAA/CREF Funds
10.44 -0.02
BdIdxInst
19.55 +0.02
0.5 EqIdxInst
-0.5 IntlEqIdxInst 20.27 -0.05
Tweedy Browne Fds
28.61 -0.16
0.1 GblValue
VANGUARD ADMIRAL
243.92 +0.45
NA 500Adml
34.11
...
0.7 BalAdml
11.50 -0.04
-2.4 CAITAdml
CapOpAdml r 154.09 -0.08
37.81 -0.14
NA EMAdmr
75.64 +0.14
EqIncAdml
92.42 -0.37
NA ExplrAdml
85.19 -0.18
ExtndAdml
10.16 -0.01
NA GNMAAdml
GrwthAdml
72.27 +0.14
5.5 HlthCareAdml r 82.92 +0.35
5.75 -0.02
-1.2 HYCorAdml r
25.09 -0.04
-0.8 InfProAd
97.15 -0.60
3.6 IntlGrAdml
1.2 ITBondAdml 10.88 -0.03
5.2 ITIGradeAdml 9.37 -0.02
9.71 -0.07
-0.7 LTGradeAdml
0.1 MidCpAdml 190.49 +0.15
92.93 -0.10
1.3 MorgAdml
11.13 -0.03
3.1 MuHYAdml
13.78 -0.04
-2.5 MuIntAdml
11.30 -0.04
5.4 MuLTAdml
10.78 -0.01
0.8 MuLtdAdml
15.68
...
-0.4 MuShtAdml
-0.3 PrmcpAdml r 135.14 +0.42
-0.1 RealEstatAdml 105.08 -0.17
0.1 SmCapAdml 71.02 -0.04
...
0.2 STBondAdml 10.23
...
-1.8 STIGradeAdml 10.46
TotBdAdml
10.37 -0.02
6.6 TotIntBdIdxAdm 21.74 -0.01
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret Fund
Net YTD
NAV Chg % Ret
4.5 TotIntlAdmIdx r 30.37 -0.08 -0.2 STAR
...
26.61 -0.05 -0.7 DevMktsIndInst 14.37 -0.03
-0.6 TotStAdml
...
66.16 +0.08 -0.4 TgtRe2015
15.19 -0.01 -0.9 DevMktsInxInst 22.47 -0.04
85.19 -0.17 0.8
TxMIn r
14.35 -0.03
... TgtRe2020
31.12 -0.02 -0.8 ExtndInst
-0.1 ValAdml
72.27 +0.14 0.1
40.61 +0.05 -1.4 TgtRe2025
18.35 -0.01 -0.8 GrwthInst
10.22 -0.02 -1.7
66.00 +0.09 -1.7 TgtRe2030
33.39 -0.02 -0.7 InPrSeIn
WdsrllAdml
-2.8 WellsIAdml
240.74 +0.45 -0.7
62.83 -0.05 -3.1 TgtRe2035
20.56 -0.01 -0.6 InstIdx
240.75 +0.44 -0.7
70.91 +0.04 -1.7 TgtRe2040
35.59 -0.01 -0.5 InstPlus
WelltnAdml
-0.7 WndsrAdml
58.81 +0.07 -0.4
79.23 +0.23 0.3 TgtRe2045
22.39 -0.01 -0.5 InstTStPlus
42.08 +0.03 -0.2
VANGUARD FDS
TgtRe2050
36.03 -0.01 -0.5 MidCpInst
-2.7 DivdGro
207.54 +0.16 -0.2
26.15 +0.02 -0.4 TgtRetInc
13.38 -0.01 -0.9 MidCpIstPl
-0.5 INSTTRF2020 22.34 -0.01 -0.8 TotIntBdIxInv 10.87 -0.01 0.4 SmCapInst
71.02 -0.04 0.6
0.5 INSTTRF2025 22.68 -0.02 -0.8 WellsI
25.93 -0.03 -3.2 SmCapIstPl 204.99 -0.13 0.6
... -0.8
41.06 +0.02 -1.8 STIGradeInst 10.46
INSTTRF2030 22.96 -0.01 -0.7 Welltn
0.4 INSTTRF2035 23.23 -0.01 -0.6 WndsrII
10.37 -0.02 -2.7
37.19 +0.05 -1.7 TotBdInst
10.34 -0.02 -2.7
TotBdInst2
INSTTRF2040 23.50 -0.01 -0.5 VANGUARD INDEX FDS
-0.7 INSTTRF2045 23.69 -0.01 -0.5 500
10.37 -0.02 -2.7
243.90 +0.45 -0.8 TotBdInstPl
-1.3 INSTTRF2050 23.71 -0.01 -0.5 ExtndIstPl
210.24 -0.43 0.8 TotIntBdIdxInst 32.63 -0.01 0.5
-1.5 IntlVal
121.46
-0.30 -0.2
TotIntlInstIdx
r
39.72 -0.12 -0.4 SmValAdml
56.34 +0.05 -0.8
0.3 LifeCon
19.67 -0.02 -1.1 TotBd2
10.34 -0.02 -2.8 TotItlInstPlId r 121.49 -0.29 -0.2
-0.8 LifeGro
66.17 +0.08 -0.4
33.47 -0.02 -0.6 TotIntl
18.16 -0.04 -0.2 TotStInst
-2.5 LifeMod
40.61 +0.05 -1.4
26.91 -0.02 -0.8 TotSt
66.13 +0.08 -0.5 ValueInst
4.5 PrmcpCor
Western Asset
26.76 +0.05 -0.5 VANGUARD INSTL FDS
0.8 SelValu r
NA
... NA
29.89 +0.02 -4.4 BalInst
34.11
... -1.2 CorePlusBdI
-2.0
0.1
-1.9
-1.2
-1.7 Performance of IPOs, most-recent listed first
1.6
% Chg From
% Chg From
-3.4 Company SYMBOL
Wed3s Offer 1st-day Company SYMBOL
Wed3s Offer 1st-day
-3.0 IPO date/Offer price
close ($) price close IPO date/Offer price
close ($) price close
-7.3
28.55
19.61 40.1 –2.0
2.0 –2.4 Zuora
-0.2 Level One Bancorp
ZUO April 12/$14.00
2.4 LEVL April 20/$28.00
-1.5 Pivotal Software
17.92
153.33 16.2
2.9
19.5 13.9 Spotify*
-1.6 PVTL April 20/$15.00
SPOT April 3/$132.00
-2.1
15.70
8.7 Genprex
5.89 17.8 25.3
4.7
-0.4 GrafTech Intl
GNPX March 29/$5.00
0.2 EAF April 19/$15.00
1.1 Surface Oncology
13.33 –11.1
... iQiYi
18.01
0.1 15.8
-9.7 SURF April 19/$15.00
IQ March 29/$18.00
0.6
-0.9 Pure Acquisition
10.19
0.7 Unum Thera
11.52 –4.0
3.7
1.9
-0.8 PACQU April 13/$10.00
UMRX March 29/$12.00
-2.7
0.5
* Direct listing. Sources: WSJ Market Data Group; FactSet Research Systems
IPO Scorecard
.
B10 | Thursday, April 26, 2018
THE WALL STREET JOURNAL.
* *
BANKING & FINANCE
Credit Suisse Profit
Affirms Restructuring
An American Express celebration marking the opening of a Hong Kong airport lounge. The company has its sights on the mainland.
AmEx Is Poised for China Entry
BY LINGLING WEI
AND CHAO DENG
BEIJING—American Express Co. cleared a hurdle in
its yearslong effort to operate
in China, potentially becoming
the first U.S. card network to
receive permission to offer
services in the Chinese market.
China’s central bank informed the New York-based
card issuer that it would “formally accept” its application
to clear and settle domestic
bank-card transactions, an
AmEx spokesman said. The
firm has applied to do so by
forming a joint venture with a
Chinese mobile-payment provider, Lianlian Group, the
spokesman said. People close
to the central bank confirmed
officials have given “verbal acceptance” to AmEx’s application.
Obtaining such regulatory
consent marks an important,
if only initial, step toward
gaining a foothold in China’s
fast-expanding electronicpayment market. Chinese authorities hope to tout AmEx’s
application as an example of
progress in opening its markets when President Donald
Trump’s top economic advisers travel to Beijing next
week to try to settle escalating trade disputes, according
to people involved in China’s
decision making.
AmEx’s decision to take on
a Chinese partner, instead of
forming a wholly owned entity, shows the difficulties
foreign firms face in going
solo in a market where the
Hard Lobby
Foreign card networks have pushed for years to enter China's market.
U.S. files complaint
with WTO on China's
treatment of American
card companies.
7 billion
WTO rules China
discriminates
against foreign
card companies.
China promises
full, prompt access
to foreign card
companies.
6
5
4
3
Credit and
debit cards
issued in China
2
1
0
2007
’08
’09
’10
’11
Source: Wind Info
government holds sway, analysts and industry observers
said. Barriers to foreigners
have been high for so long
that Chinese institutions now
thoroughly dominate many
sectors, especially in finance,
be they for payment services,
credit rating, brokerages or
banking, sectors in which
China has said greater foreign participation would be
allowed.
Authorities “aren’t establishing a level playing field,”
said Lester Ross, a Beijingbased lawyer at WilmerHale,
who advises U.S. businesses
operating in China. Instead, he
said, they’re “opening a door
but only for firms to crawl
through.”
Opening the market to foreign card companies was a
pledge Beijing made a dozen
years ago. It still hadn’t done
’12
’13
’14
’15
’16
’17
THE WALL STREET JOURNAL.
so when Beijing promised “full
and prompt” market access as
part of a quick 100-day market-opening package made after a summit between President Trump and President Xi
Jinping a year ago. Credit-rating, brokerage and financial
firms are all areas Beijing has
over the past year said greater
foreign participation would be
allowed, but in which foreign
executives complain that licensing and other regulatory
roadblocks leave those promises unfulfilled.
China already has 6.7 billion
bank cards in circulation, with
government-owned
China
UnionPay Co. commanding
more than 90% of the domestic market.
Joint ventures, like the one
being formed by AmEx, have
drawn particular ire from
some Trump administration
officials who see them as a
tool China uses to reduce
American companies’ profits
and siphon off their technical
know-how.
The AmEx spokesman said
the firm’s strategy has always
been to form a joint venture in
China. AmEx has worked with
Lianlian as far back as 2012,
providing technologies to
power Lianlian’s digital wallets.
In addition to AmEx, Mastercard Inc. has also formed a
partnership with three Chinese entities and has applied
with the central bank to conduct card-clearing and settlement transactions in the country, according to people with
knowledge of the matter. Its
joint-venture application so
far hasn’t been accepted by
the People’s Bank of China, the
people said.
Visa Inc. recently has
withdrawn and resubmitted
its application to form a
wholly owned entity in China,
according to people familiar
with the matter. So far, the
firm’s application hasn’t been
accepted by the central bank,
the people said, and Visa is
also weighing potentially
teaming up with Chinese
banks as way to get into the
Chinese market if it doesn’t
get the green light.
A Visa spokeswoman said
the company would continue
to work through the application process and is committed
to China for the long run. She
declined to elaborate.
—Yang Jie
and AnnaMaria Andriotis
contributed to this article.
Crypto Exchange Gets Nasdaq Help
Gemini, the bitcoin exchange founded by Cameron
and Tyler Winklevoss, has
teamed up with Nasdaq Inc.
to beef up its defenses
against market manipulation—the latest sign that the
cryptocurrency industry is
trying to get past its Wild
West days.
The deal comes as regulators have stepped up scrutiny
of digital-currency exchanges
in recent months. Securities
and Exchange Commission officials have warned of potential fraud and manipulation
on the largely unregulated
trading venues.
Under the agreement, Gemini will use Nasdaq’s surveillance software, called Smarts,
to monitor its markets for potentially abusive trading practices. The two companies announced the agreement on
Wednesday. Financial terms
weren’t disclosed.
“We’re doing this because
we believe in the importance
of creating a rules-based marketplace,” Cameron Winklevoss, president and cofounder of Gemini, said in an
interview. “We believe this is
where things are headed.”
Smarts is part of Nasdaq’s
market-technology business,
in which the New York-based
exchange group sells software
to other market operators.
The surveillance technology is used by equities and
derivatives exchanges around
the world, including Intercontinental Exchange Inc.,
Hong Kong Exchanges &
Clearing Ltd. and the Nige-
KARWAI TANG/GETTY IMAGES
BY ALEXANDER OSIPOVICH
Chief Executive Tidjane Thiam launched the restructuring.
FINANCE WATCH
PAYPAL
Mobile Payments
Cited in Profit Gain
PayPal Holdings Inc. said on
Wednesday that first-quarter
profit rose by one-third thanks
to increases in mobile payments
and cross-border trade.
The San Jose, Calif.-based financial-technology firm reported
a quarterly profit of $511 million,
or 42 cents a share. That compares with a profit of $384 million, or 32 cents a share, a year
earlier. On an adjusted basis, PayPal’s per-share earnings rose to
57 cents, above the estimate of
analysts polled by Thomson Reuters. Net revenue rose 24% to
$3.69 billion, more than the $3.59
billion analysts were expecting.
Payment volume totaled $132
billion, up nearly one-third from
the same period a year ago.
Venmo, PayPal’s mobile personto-person payments service, handled more than $12 billion in volume during the first quarter.
—Peter Rudegeair
NYSE
Glitch Stops Trading
In Big Nasdaq Stocks
Gemini, founded by Tyler and Cameron Winklevoss, wants defenses against market manipulation.
rian Stock Exchange.
Nasdaq’s technology monitors real-time market activity
and raises alerts if it detects
unusual trading patterns. It is
then up to humans to investigate the event and determine
whether the traders behind it
broke any rules.
Nasdaq is in “active discussions” with a number of other
cryptocurrency firms about
Smarts, according to Chief Executive Adena Friedman. “The
crypto space is a nice growth
area,” she said in an interview
Wednesday.
At Gemini, Smarts will help
Credit Suisse Group AG
posted a strong rise in firstquarter net profit, beating expectations and bolstering evidence that the Swiss lender’s
yearslong restructuring has
put it back on track to
growth.
Net profit grew by 16% to
694 million Swiss francs
($709.1 million) as revenue
rose 1.8% to 5.64 billion
francs. Analysts had expected
Credit Suisse to report net
profit of 653 million francs on
revenue of 5.49 billion francs.
The results kick off a crucial year for Credit Suisse,
which reported its third consecutive annual loss in 2017
after a charge related to U.S.
tax changes hit its fourthquarter results.
The bank is in the last year
of a three-year overhaul,
shifting its emphasis toward
wealth management and away
from investment banking,
which can be profitable but is
also volatile and costly to run.
Chief Executive Tidjane
Thiam, who launched the restructuring after joining the
bank in the middle of 2015,
said the revamp laid the foundation for last quarter’s results. “What you are seeing
today is the impact of what
we did in 2016,” he said.
“The big idea for growth is
wealth management,” he said,
calling investment banking a
“flat industry.”
Investors welcomed the re-
monitor trading of bitcoin
and Ethereum, the secondlargest cryptocurrency, and it
will surveil the auctions that
Gemini holds at 4 p.m. ET to
determine a daily benchmark
price for bitcoin, the companies said.
Gemini’s auction price is
used to underpin bitcoin futures offered by Cboe Global
Markets Inc., which started
trading in December.
Some traders have voiced
concerns that bitcoin futures
could be manipulated through
heavy buying or selling in the
Gemini auctions.
Cboe and Gemini say they
have a variety of measures in
place to combat any attempts
at manipulation.
Last week, Gemini was
among 13 cryptocurrency exchanges to receive a letter
from New York Attorney General Eric Schneiderman demanding that they answer a
list of questions about their
practices, including what
safeguards the exchanges had
in place against attempted
manipulation.
Gemini pledged to cooperate with Mr. Schneiderman’s
inquiry.
sults, with shares in the bank
rising 3.5% Wednesday.
“We continue to believe
that 2018 is set to be a year
in which [Credit Suisse]
should be able to deliver
turnaround benefits from the
large-scale restructuring program,” said analysts at
Baader Helvea Equity Research.
Rival UBS Group AG’s firstquarter results on Monday
also mostly beat expectations,
though not as clearly as
Credit Suisse’s did. Its shares
dropped around 4% in the following hours.
For the first quarter, Credit
Suisse’s international wealthmanagement division reported a 45% increase in adjusted pretax income.
The Swiss universal bank
and Asia-Pacific operations
reported a double-digit percent increase in adjusted pretax income.
The investment-banking
and capital-markets division
reported lower net revenue
“in a quarter characterized by
muted client activity,” the
bank said.
Credit Suisse warned that
financial markets would be
exposed to periods of heightened volatility due to global
trade negotiations, monetarypolicy tightening and other
geopolitical events.
“Client activity levels remain sensitive to these factors, specifically within our
more market dependent activities,” Credit Suisse said.
SIMON DAWSON/BLOOMBERG NEWS
BILLY H.C. KWOK/GETTY IMAGES FOR AMERICAN EXPRESS
BY PIETRO LOMBARDI
AND BRIAN BLACKSTONE
The New York Stock Exchange temporarily suspended
trading of shares of Amazon.com Inc., Google parent Alphabet Inc. and several other
Nasdaq-listed stocks due to a
technical glitch on its flagship
exchange.
The issue, which the NYSE
announced in a notice emailed to
traders at 12:24 p.m. New York
time on Wednesday, had no impact on the vast majority of investors. That is because stocks
are traded on many other exchanges, and shares in Amazon
and Alphabet could still be
traded elsewhere even while being suspended at the NYSE.
Still, it was an embarrass-
ment for the Big Board, which
only began to allow trading of
stocks and exchange-traded
funds listed on other exchanges
earlier this month. The April 9
change reversed a decades-old
policy in which trading on the
NYSE’s flagship exchange was
limited to stocks listed there.
“We suspended trading in
these symbols to minimize impact to a very small subset of
customers, and the issue will be
resolved by tomorrow,” a NYSE
spokeswoman said Wednesday.
—Alexander Osipovich
VISA INC.
Earnings Surge as
Spending Increases
Visa Inc.’s quarterly profit
surged sixfold in the latest period, bolstered by increased consumer spending on credit and
debit cards and the integration
of its European business.
Visa, the largest U.S. card network by such measures as cards
in circulation and number of
transactions, reported payments
volume of nearly $2 trillion in the
quarter, up 15% from a year earlier. Total transactions increased
10% from a year prior.
Visa’s numbers were aided by
strong credit-card purchase volume at several large banks during the quarter, including JPMorgan Chase & Co. and Wells Fargo
& Co., which issue many cards
that run on Visa’s network.
In addition, Visa’s finance
chief Vasant Prabhu on the earnings call cited strong spending
growth in markets abroad, in
particular in travel. Payments occurring in the U.S. with cards
from consumers who reside in
other countries increased by the
largest amount since 2014.
Overall, second-quarter profit
surged to $2.61 billion, or $1.11 a
share, from $430 million, or 18
cents a Class A share.
—Maria Armental and
AnnaMaria Andriotis
.
THE WALL STREET JOURNAL.
Thursday, April 26, 2018 | B11
* * * *
MARKETS
Treasurys
Plant Flag
Strongly
In 3% Zone
Dow Losing Streak Ends at 5 Days
BY AKANE OTANI
BY AMRITH RAMKUMAR
AND RIVA GOLD
AUCTION RESULTS
Here are the results of Wednesday's Treasury
auctions. All bids are awarded at a single price at the
market-clearing yield. Rates are determined by the
difference between that price and the face value.
FIVE-YEAR NOTES
Applications
Accepted bids
" noncompetitively
" foreign noncompetitively
Auction price (rate)
Interest rate
Bids at clearing yield accepted
Cusip number
$91,691,209,000
$39,467,309,000
$54,545,200
$0
99.597097
(2.837%)
2.750%
56.70%
9128284L1
The notes, dated April 30, 2018, mature on April 30,
2023.
TWO-YEAR FRNs
$64,232,166,300
Applications
$19,169,908,300
Accepted bids
$40,793,700
" noncompetitively
0.033%
Spread
91.62%
Bids at clearing yield accepted
9128284K3
Cusip number
The floating-rate notes, dated April 30, 2018, mature
on April 30, 2020.
BANKS
Continued from page B1
advantage of new opportunities, “you could see this revenue level for the next three
quarters” at banks, said Guy
Moszkowski, analyst at Autonomous Research.
But recent trends suggest
that many fund managers
won’t necessarily be looking to
put more money to work in
the market if prices drop. In a
volatile market, banks also
face elevated risks that they
could be caught on the wrong
side of a trade. “Everyone in
equities is now thinking about
preparing and taking on more
insurance,” said Brad Bailey,
research director at Celent,
which advises financial firms
on technology.
Derivatives contracts, which
can tie to any instrument
from stock indexes to interest
rates, have a long and colorful
history on Wall Street, generating lucrative paydays but
also painful losses due in part
to the ease with which they
can be used with borrowed
money.
The biggest banks, in particular, have seen swings in
equities, including more than
$1 billion in losses last year
tied to the former chairman of
South African retailer Steinhoff International Holdings
NV.
In the first quarter, equities
trading revenue at the five
biggest Wall Street banks—
Morgan Stanley, Goldman
Sachs Group Inc., JPMorgan
The Dow Jones Industrial
Average
inched
higher
Wednesday to end its longest
losing streak in more than a
year, lifted by a surge in Boeing shares
WEDNESDAY’S
following
MARKETS
the aerospace giant’s latest
earnings report.
Stocks have wobbled in recent days with bond yields
climbing and investors wondering whether earnings are
peaking for big U.S. companies, which could hinder future stock gains as interest
rates and inflation continue
rising.
But a spate of more upbeat
earnings
boosted
stocks
Wednesday, with eight of 11
S&P 500 sectors climbing.
“Tax reform and economic
momentum suggests that
earnings are likely to peak this
year, but not until later in the
year,” said Kristina Hooper,
chief global market strategist
at Invesco. “There’s still more
upside, it’s just a different
market environment than we
experienced last year.”
The blue-chip index added
59.70 points, or 0.2%, to
24083.83 to break a five-session losing streak after dropping as much as 0.8% earlier
in the session. The S&P 500
added 4.84 points, or 0.2%, to
2639.40, and the Nasdaq Composite declined 3.61 points, or
less than 0.1%, to 7003.74.
The tech-heavy index has
fallen in five straight sessions,
its longest streak since November 2016, and major indexes remain more than 7.7%
off their records from earlier
this year.
Boeing shares rose $13.80,
or 4.2%, to $342.86, adding 95
points to the Dow industrials
after the company boosted key
financial guidance for 2018.
Comcast climbed 91 cents,
or 2.7%, to 34.26 after it
posted
strong
earnings
growth, despite continuing cable TV subscriber losses. The
media giant also formally sub-
its latest quarter following
charges tied to a legal settlement that paved the way for
Steve Wynn to sell his stake in
the company he co-founded.
Trading was volatile again
Wednesday, with major indexes swinging between gains
and losses throughout the session before rising in the afternoon. Although S&P 500 earnings are expected to rise at
the fastest pace in years, some
analysts doubt companies can
sustain that growth moving
forward as the Federal Reserve raises interest rates and
pushes up bond yields.
The yield on the benchmark
10-year U.S. Treasury note
continued to climb as prices
fell and settled at 3.026%, its
highest level since 2013 and
up from 2.983% Tuesday. It
touched 3% for the first time
in more than four years Tuesday.
In Asia early Thursday,
South Korea’s Kospi was up
1.2% after Samsung reported
higher profit for the first
quarter. Japan’s Nikkei was up
0.7%, but Chinese markets
were lower.
—Joanne Chiu and Mike Bird
contributed to this article.
Earnings Swings
Boeing and Comcast rose after reporting first-quarter
earnings, while Northrop Grumman and Wynn Resorts fell.
6%
4
Boeing
2
Comcast
0
–2
Northrop
Grumman
Wynn
Resorts
–4
–6
–8
9:30 a.m.
noon
THE WALL STREET JOURNAL.
Source: FactSet
mitted its $31 billion proposal
to buy Sky PLC.
Northrop Grumman was
among the worst performers
in the S&P 500, falling 8.90, or
2.6%, to 332.62. The defense
contractor topped sales and
profit expectations in the first
quarter and boosted its earnings outlook for the year,
though it maintained its outlook on revenue and other
metrics.
Twitter shed 72 cents, or
2.4%, to 29.75 even after posting its second profitable quarter as a public company. The
social-media firm warned
growth likely will slow for the
remainder of the year.
Shares of Wynn Resorts
declined 7.11, or 3.7%, to
182.89 after the casino operator said it swung to a loss in
WeWork’s Bond Sale Raises $702 Million
BY SAM GOLDFARB
WeWork Cos. sold $702
million in bonds Wednesday,
becoming the latest startup to
win over debt investors despite a cash-burning history
that is atypical for a bond issuer.
WeWork, a New York-based
office-space provider with a
hip reputation and $20 billion
valuation, was able to sell its
seven-year bonds at par with a
7.875% interest rate, people familiar with the matter said.
That rate was in line with the
guidance set by a JPMorgan
Chase-led group of underwriters on Tuesday, although the
size of the deal was increased
from $500 million.
Investors looking at the
deal cited concerns about WeWork’s minimal assets, sizable
lease obligations, negative
cash flow and strategic challenges as the company expands beyond high-rent cities
like New York and San Francisco.
Still, some were lured by a
relatively high interest rate for
the company’s single-B credit
rating, and comforted by the
support it has won from equity holders such as SoftBank
Group Corp., which invested
$4.4 billion last August
through its tech-focused Vision Fund.
Bond investors are typically
nervous about lending to companies that don’t generate stable cash flows. Unlike equity
investors, bond investors reap
In Demand
Average high-yield bond
spread to Treasurys
9 percentage points
8
7
6
5
4
3
2015
’16
’17
THE WALL STREET JOURNAL.
destrian in Arizona.
Uber, which was recently
valued in a secondary sale at
$48 billion, burned through
$40 million in cash in the
fourth quarter. Its $1.5 billion
floating-rate loan, which pays
a 6.4% coupon at current interest rates, is quoted at
around 101 cents on the dollar,
according to Markit.
After a rough patch earlier
this year, the high-yield bond
market has recovered of late,
with risk premiums falling to
near their lowest levels since
the financial crisis. The average junk-bond yield was 3.3
percentage points above the
comparable Treasury yield on
Tuesday, down from 3.43 percentage points at the end of
2017, according to Bloomberg
Barclays data.
A bond-offering document offers a look into WeWork’s finances. WeWork offices in San Francisco.
limited rewards if a young
company goes on to great
things, but face ample downside if the business can’t make
its interest payments.
At the same time, a lofty
valuation implies equity investors are prepared to help the
company through growing
pains, making a default less
likely.
“This is still a startup,” said
Scott Roberts, head of highyield investments at Invesco.
“Traditional credit metrics
don’t apply here.”
In a document presented to
bond investors, WeWork offered some unusual measures
of its earnings before interest,
taxes, depreciation and amortization last year. While its adjusted Ebitda was negative
$193.3 million, its “adjusted
Ebitda before growth investments” was $49.4 million and
its “community adjusted
Ebitda,” which excludes general and administrative expenses, was $233.1 million.
Chase & Co., Bank of America
Corp. and Citigroup Inc.—was
$9.5 billion, the largest haul
for those firms since at least
2009, according to the Journal
analysis. The 32% jump from
last year’s first quarter was
the biggest since 2011 and far
greater than analysts anticipated. Switzerland’s UBS
Group AG, which is also a
large U.S. equities trading
firm, reported Monday a
nearly 25% jump in first-quarter equities trading revenue,
as measured in dollars, from a
year earlier.
Equity derivatives drove
the jump; revenue at some
banks in that department rose
by more than 50%, people fa-
miliar with the matter said.
Meanwhile, actual stock trading, known as “cash trading”
in Wall Street parlance, was
generally up only a small
amount from a year ago, the
people said.
The results helped make up
for a slight drop in performance among those banks’
larger fixed-income, commodities and currencies desks.
Morgan Stanley Chief Financial Officer Jonathan Pruzan said equity-derivatives
trading was the highlight of
the quarter, in which the
bank’s equities revenue rose
27%.
—Liz Hoffman
contributed to this article.
Investors Picky on Tech Stocks
CFTC Chief Plans
Swaps Rule Revamp
gress intended in the 2010
Dodd-Frank financial law.
Swaps are derivatives contracts in which two parties
agree to exchange payments
based on fluctuations in certain
benchmarks. Companies use
them to hedge risks or make
bets in such areas as fuel
prices or interest rates.
At an industry conference
in Miami on Wednesday, CFTC
Division of Market Oversight
Director Amir Zaidi said he
hoped the proposal could be
ready as early as July.
The overhaul will be detailed in a white paper that is
expected to be published
Thursday. Mr. Giancarlo described the paper as “regulatory reform 2.0,” an update,
rather than a repudiation, of
Dodd-Frank.
—Gabriel T. Rubin
U.S. regulators want to
make it easier for companies
to complete swaps trades, responding to industry complaints that postcrisis rules
have hurt market liquidity.
Commodity Futures Trading
Commission Chairman J. Christopher Giancarlo is expected to
detail his vision Thursday for
overhauling the system, setting
the stage for new rules to be
rolled out in coming months.
Mr. Giancarlo, a Republican,
has long criticized the swapexecution rules enacted by the
CFTC under former Democratic
Chairman Gary Gensler, saying
they are overly prescriptive
and run counter to what Con-
’18
Note: Option-adjusted
Source: Bloomberg Barclays
MIKE SHORT/BLOOMBERG NEWS
Investors continued to sell
Treasurys, sending the yield
on the 10-year note to fresh
multiyear highs above 3%.
The yield on the 10-year
note, used as a reference for
everything from auto loans to
student debt to mortgage
rates, settled at
CREDIT
3.026%,
the
MARKETS highest closing
level since Dec.
31, 2013. Yields
had settled at 2.983% Tuesday
after piercing 3% in intraday
trading. Yields rise when bond
prices fall.
The latest bout of bond
selling has come in part as rallying crude-oil prices—as well
as signs that Federal Reserve
officials are confident about
the economy’s trajectory—
have spurred fresh investor
bets on growth and inflation.
The yield on the 10-year
note has notched six consecutive advances.
Now, investors are concerned about how much further bond yields will rise and
whether bond selling could
spill over into stocks. Earlier
this year, investors shed
stocks, fearing a faster-thanexpected pickup in inflation
could force the Fed to accelerate its pace of rate increases.
A jump in borrowing costs
could threaten to crimp spending among consumers and corporations, although some investors say that could act as a
brake on the economy, ultimately capping the rise in
bond yields.
Many also still believe the
economy is on strong footing,
and that bond yields haven’t
climbed high enough to, by
themselves, derail the nineyear stock rally. The economic
picture “is filled with solid
GDP metrics, strong consumer
sentiment and steady jobs
numbers,” said Mike Loewengart, vice president of investment strategy at E*Trade.
Blue chips eke out
small gain, fueled by
earnings-driven
increase in Boeing
BY BEN EISEN
AND AKANE OTANI
Investors rattled by recent
volatility are becoming choosier
about which technology-focused
stocks they scoop up, a reversal
from 2017 that threatens to undermine the tech sector’s dominance in the long stock rally.
The S&P 500 tech sector, up
1.8% in 2018, is still among the
best-performing groups in the
broader index. But more than a
third of the 69 stocks in the
sector have declined in 2018,
the most for any full year since
2011. In 2017, only six of them
had lost ground.
The divisions are likely to
come into sharper focus as more
tech-focused companies report
financial results in coming days.
With
valuations
already
stretched by traditional measures, investors are contemplating which companies warrant
the higher multiples that typically come with the tech label.
The moves follow a year
when any name with a Silicon
Valley ring to it seemed to rise.
Netflix Inc. rose 55% in 2017,
while shares of Tesla Inc. and
Apple Inc. both surged 46%.
Netflix, though lumped into
the consumer-discretionary
sector, has climbed 59% this
year as its video-streaming service has continued to post subscriber growth. But Tesla, an
electric-car maker that isn’t in
the S&P 500, is down 9.9%
amid concerns about the pace
of production of its new Model
WeWork resembles some
other growing businesses that
have tapped the debt markets
in recent years, such as Uber
Technologies Inc. and Tesla
Inc.
In Uber’s case, investors
have twice lent to the ridesharing company through the
high-yield loan market, first in
2016 and most recently in
March, when the company issued a $1.5 billion loan the
same week one of its self-driving cars struck and killed a pe-
Diverging Fortunes
Performance by year
2017
60%
2018 through Wednesday
40
20
0
–20
Amazon
Netflix
Facebook
Source: WSJ Market Data Group
3. Apple has fallen 3.3%.
“It’s more of a prove-it-tome market,” said Brian Johnson, chief investment officer at
Viridian Advisors in the Seattle
area, which has roughly $600
million in assets. Mr. Johnson’s
firm sold its stake in Tesla last
month. He noted that sentiment around the stock had
soured after its remarkable run
in 2017. His firm, however, still
holds some big tech stocks.
After its run-up in 2017, the
S&P 500 tech sector trades at
roughly 31 times its past 12
months of earnings, carrying
among the highest price/earnings ratio of the 11 sectors in the
broad index. The S&P 500 trades
at 22 times trailing earnings.
Rising valuations have made
certain tech areas look less appealing, investors say, especially
Apple
Tesla
Alphabet S&P 500
THE WALL STREET JOURNAL.
given the possibility of tighter
regulations on some companies.
Facebook Inc., which was
the fifth-largest S&P 500 firm
by market cap earlier this year,
tumbled in March as lawmakers blasted its handling of users’ data—raising fears that
firms heavy on data collection
could face stricter regulations.
Twitter shares fell 2.4%
Wednesday after the company
warned that revenue growth
likely will slow for the rest of
the year.
Meanwhile, Brian Culpepper, a portfolio manager at
James Investment Research,
favors lesser-known companies
such as Western Digital Corp.,
which manufactures data-storing devices, including hard
drives. Shares of Western Digital have climbed 8% in 2018.
.
B12 | Thursday, April 26, 2018
THE WALL STREET JOURNAL.
MARKETS
Consumer-Staples Stocks Are Stumbling
Sector is this year’s
worst performer, hurt
by rising costs and
online competitors
Kroger’s share price
Performance, year to date
$32
–1.3%
30
Target says it will buy
grocery delivery firm Shipt
28
BY AKANE OTANI
AND MICHAEL WURSTHORN
Investors once attracted to
the steady payouts of companies selling staples like breakfast cereal, toothpaste and razors are shopping elsewhere.
A series of disappointing
earnings reports from industry
giants such as Philip Morris
International Inc., Procter &
Gamble Co. and KimberlyClark Corp. have sent consumer-goods shares tumbling
in recent days—a sign that
many investors remain skeptical of the companies’ ability to
cope with rising costs, as well
as to fend off online competitors such as Amazon.com Inc.
The sector’s underperformance comes as a surprise to
analysts who had expected
signs of a pickup in inflation
to drive investors into shares
of businesses that sell household goods and basic necessities, products that consumers
would typically be willing to
buy even when rising prices
crimp their spending elsewhere. Instead, companies
competing with discount retailers are struggling to raise
prices for their marquee products—something recent earnings reports show has become
a growing headwind for their
businesses.
Even hefty dividend payouts haven’t been enough to
lure investors into shares of
consumer-staples companies,
which have shed 12% in the
S&P 500 this year and posted
the biggest losses of the broad
index’s 11 sectors. The S&P
500 has fallen 1.3%.
The industry’s pricing issues have many money managers wondering whether the
biggest makers of household
staples have already seen their
–21.7
Clorox
–21.8
Altria
–22.6
Philip Morris
International
Wednesday
$25.63
26
Amazon discloses plans to
cut prices at Whole Foods
24
22
20
Walmart offers home
delivery for groceries
Amazon says it will
buy Whole Foods
–25.7
General Mills
18
A M
2017
J
J
A
S
O
D
N
Trailing 12-month price/earnings ratio
J
2018
F
M
A
–26.9
21.7 times
30.7
Technology
3.8
3.8
Utilities
24.0
Energy
5.6
Telecom
Real estate
26.3
Health care
2.4%
S&P 500
37.3
Real estate
3.1
Energy
Consumer discretionary
21.0
Consumer staples
Industrials
20.8
Health care
19.6
3.0
2.3
Consumer discretionary
2.2
17.7
Materials
2.1
Consumer staples
17.2
Industrials
2.0
Utilities
16.9
Financials
Materials
Financials
6.9
Telecom
2.0
1.8
Technology
THE WALL STREET JOURNAL.
Sources: FactSet (share price, performance); WSJ Market Data Group (P/E ratio); S&P Dow Jones Indices (yield)
best days.
“What’s happening is that
these firms are struggling to
pass on rising costs to consumers,” said Shawn Cruz,
manager of trader strategy at
TD Ameritrade. “Big brands
have counted on their brand
name drawing customers in,
and that’s not necessarily happening anymore.”
One of the worst days of
the year for the consumer-staples sector came last Thursday, when tobacco giant Philip
Morris said quarterly shipments fell more than expected
as consumers world-wide continued to turn away from cigarettes. Philip Morris shares fell
Kraft Heinz
Average yield of dividend-paying stocks
S&P 500
16%, posting their biggest oneday percentage decline since
going public in 2008, according to FactSet. The stock is off
23% for the year.
Many companies serving up
consumer staples have suffered more broadly, though,
from rising competition from
online retail giants, which
have put pressure on firms to
keep product prices low.
Shares of Procter & Gamble,
the maker of Tide detergent
and Pampers diapers, have
shed 21% this year, making
them one of the worst performers in the sector. The
company has cut prices across
its businesses, including its
Gillette razors, to try to stave
off competition from other
low-cost rivals such as Dollar
Shave Club—something that
crimped its sales growth in
the most-recent quarter.
Another company that has
fallen behind: General Mills
Inc., whose shares have tumbled 26% this year as it has
grappled with what Chief Executive Jeff Harmening said
was an “unprecedented rise in
logistics costs.”
That has forced it to lower
its earnings expectations for
the year, with company projections now suggesting pershare earnings for the fiscal
year ending in May will rise by
just 1%, compared with the 4%
increase previously estimated.
Although freight and commodities costs have increased,
companies such as General
Mills, Campbell Soup Co., Kellogg Co. and Conagra Brands
Inc. have struggled to protect
profits by raising prices for
products, citing steep competition from discount retailers.
Even companies that have
ventured into e-commerce to
try to compete more directly
with the likes of Amazon and
Walmart Inc. have struggled.
Kroger Co. shares fell 12% on
March 8, its biggest one-day
percentage slide since June,
after the company said its in-
HEARD ON THE STREET
Email: heard@wsj.com
FINANCIAL ANALYSIS & COMMENTARY
Facebook Still in the Friend Zone
Facebook is a hard friend
to dump, even when it has it
coming.
The social network’s firstquarter report Wednesday
showed that about 48 million
daily active users signed up
during the period. That was
up 3.4% from the December
quarter and was in line with
Wall Street’s expectations.
That alone was remarkable considering the scandal
that erupted late in the period involving Cambridge Analytica that landed CEO Mark
Zuckerberg before Congress
and relieved the company of
nearly $74 billion in market
value.
Facebook has yet to fully
recover from that affair. The
company also still faces the
difficult task of improving
the security of its network,
not to mention its public im-
S&P 500
Steady Climb
Average daily active Facebook users
1.50 billion users
1.25
1.00
0.75
0.50
0.25
0
2012
’13
’14
’15
age.
The bill is pending. The
company’s total costs and expenses rose 39% year over
year for the quarter, below
the boost of 50% to 60% the
company is now projecting
for the full year.
But Wednesday’s results
’16
’17
’18
THE WALL STREET JOURNAL.
Source: the company
suggest the world’s largest
social network isn’t easily
unplugged. Facebook’s ability
to keep users and to convince even more to join
means that advertisers aren’t
going anywhere, either.
Advertising revenue
jumped 50% to $11.8 billion.
Also worth noting is that
revenue in the U.S. and Canada—nearly half of the company’s total—jumped 44%
despite less than 2% growth
in the company’s daily user
base in those countries during the period.
Much remains unknown,
including what form new
regulations may take and
how they could impact social
media profits. But even a 7%
price jump in after-hours
trading Wednesday keeps
Facebook around 20 times
forward earnings, adjusted
for net cash. That is slightly
below Google parent Alphabet’s valuation and a bargain
compared with much smaller
Twitter. Given the clouds
hanging over it, it may be a
while before Facebook can
command much more.
—Dan Gallagher
OVERHEARD
The disrupter of all sorts
of industries is entering the
parenting business.
Amazon.com announced a
new program Wednesday for
its Alexa digital assistant
called FreeTime.
It “includes a new set of
parental controls and familyfocused features” that will
enable parents to set bedtime time limits on device usage and block music with explicit lyrics.
FreeTime also will allow
for automated household announcements.
FreeTime also has a feature called “Magic Word,”
which offers positive reinforcement to kids who use
words like “please” when
making requests of Alexa.
Who needs Mom and Dad
anyway?
Stock Value Means Wynn Resorts Remains a Risky Bet
Matt Maddox, the new
chief executive of Wynn Resorts, began the company’s
first-quarter earnings call on
Tuesday by acknowledging
that “it’s definitely been an
eventful three months.”
He wins points for understatement, though not sensitivity to the serious matter
of alleged sexual harassment
and rape. After a few perfunctory words about
Wynn’s commitment to diversity and equality, Mr.
Maddox quickly moved on to
touting the company’s stellar
assets. “I’m not interested in
looking in the rearview mirror,” he said.
But objects in the mirror
are closer than they appear
and still could run this stock
off the road. That risk barely
is reflected in Wynn’s share
price, which is almost back
to its prescandal level. Before The Wall Street Journal’s story broke in January,
Wynn was trading around
$200 a share. After a sharp
fall, it is now back up to
$190. But the hazards to
which founder Steve Wynn
exposed the company didn’t
vanish entirely with his departure. Mr. Wynn has said
it is “preposterous” that he
would assault a woman; he
hasn’t responded to other allegations of sexual misconduct.
First, the company has refused to overhaul its board,
which was widely viewed as
lacking independence from
Mr. Wynn. True, it has added
three women, but that
doesn’t solve the problem of
the majority male board
members who may have
turned a blind eye to Mr.
Wynn’s behavior for years.
Elaine Wynn, Mr. Wynn’s exwife and now the largest
shareholder, has pointed to
the “exorbitant” pay package
recently approved for Mr.
Maddox as evidence that
“very little has changed” at
the company.
That matters not only be-
Gambling Problem
Wynn Resorts share price, past six months
$200
Jan. 27
News of Steve Wynn's alleged
sexual misconduct breaks
175
150
125
Nov. 2017
Dec.
Jan. ’18
Source: FactSet
cause it gives little reassurance that reputational issues
such as sexual harassment
will be taken seriously in the
future, but also because it
suggests that the company’s
corporate governance in general isn’t improving. A special committee of the board
that is investigating the allegations includes John Hagen-
Feb.
March
April
THE WALL STREET JOURNAL.
buch, a longtime close friend
of Mr. Wynn. As Ms. Wynn
has noted, that is “disconcerting.”
A more immediate reason
for shareholders to be concerned is that the company
remains at risk of having its
casino licenses revoked. The
Massachusetts Gaming Commission is investigating who
knew about Mr. Wynn’s alleged behavior and what, if
anything, they did about it.
That has prompted Wynn
Resorts to begin talks to sell
its partially built $2.5 billion
casino near Boston. If it is a
forced seller then it may not
receive a full price.
“We still like the Greater
Boston area market,” said
Mr. Maddox, who cited the
“risk due to heightened rhetoric.”
Las Vegas remains far
more material and the Nevada Gaming Commission is
unlikely to revoke the company’s license there, but in
Macau, where revenue from
Wynn Macau topped $618
million this quarter, Chinese
regulators could act. The allegations give them a pretext
for replacing Wynn Resorts
with a Chinese company,
which they might prefer.
Betting on Wynn shares
so close to their prescandal
level is a real roll of the dice.
—Elizabeth Winkler
vestments in online operations
cut into fourth-quarter profit.
Some consumer-products
companies are taking more
drastic steps to slash costs to
protect thinning profit margins. Kimberly-Clark, which
makes Huggies diapers and
Kleenex tissues, kicked off a
huge restructuring of its operations earlier this year that is
expected to deliver annual
pretax savings of as much as
$550 million by the end of
2021. But the overhaul is projected to be pricey, with total
costs reaching as much as $1.9
billion before then.
Those charges weighed on
Kimberly-Clark’s first-quarter
earnings, which were reported
Monday, but the company
boosted its sales forecast for
the year. The shares fell 1.5%
Monday. CEO Thomas Falk
said the cost cuts are necessary, along with the development of new products and
some stronger pricing, to put
the company, and the industry
at large, on firmer footing.
Some analysts believe a
wave of stock volatility that
spurs demand for haven assets
could prompt a rebound in
consumer-staples
shares,
which many consider bondlike
because of their dividend payments.
As of the end of March, 33
of 34 companies in the S&P
500’s consumer-staples sector
had boosted dividend payouts
to shareholders, according to
data from S&P Dow Jones Indices, with the sector’s average yield clocking in at 3%,
above the 2.4% average for
dividend-paying stocks across
the entire S&P 500.
Still, sectors that investors
tend to think of as safety
plays—telecommunications,
real estate and utilities—have
all underperformed the S&P
500 this year. Meanwhile, investors have added to their
bets on technology companies
that they believe will be able
to deliver faster earnings
growth.
WSJ.com/Heard
Resurgent
Twitter Isn’t
A Free Bird
Twitter has gone from a
company that can do no
right to one that can’t do
right enough. Both have their
downsides.
The latter sentiment was
evident Wednesday following
strong first-quarter results.
Advertising revenue jumped
21% year over year. It was
the best performance in two
years. The company also
added six million monthly
users, which had remained
flat at 330 million for the
preceding two quarters. Total revenue exceeded expectations by 10%.
That didn’t prove enough
to keep Twitter’s alreadyhighflying stock airborne as
the shares dropped 2.4%. The
company noted that growth
in the latter half of the year
won’t look as good. It also
didn’t help that the stock already had surged by 27% in
2018, mostly on the strength
of the company’s last quarterly report. That made Twitter a standout against advertising-driven peers Facebook
and Google parent Alphabet
Inc., both of which have been
beaten down by worries
about privacy and the potential government regulation.
Twitter isn’t immune to
those fears, but it began the
year with an even bigger
concern: the notion that its
business had peaked. Such
fears now seem premature.
Twitter has now generated
real earnings for two consecutive quarters.
Yet Twitter remains expensive relative to those
earnings. Even Wednesday’s
decline keeps the stock at
more than 200 times Wall
Street’s projections, nearly
10 times the multiple that
Facebook and Alphabet command. Against that bar, Twitter’s results were simply
never going to fly high
enough.
—Dan Gallagher
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