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The Wall Street Journal December 27 2017

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DJIA 24746.21 g 7.85 0.0%
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WSJ.com
WEDNESDAY, DECEMBER 27, 2017 ~ VOL. CCLXX NO. 150
* * * *
STOXX 600 (Closed)
10-YR. TREAS. À 6/32 , yield 2.467%
OIL $59.97 À $1.50
GOLD $1,284.10 À $8.70
Business & Finance
M
anufacturing firms
outside Detroit and Silicon Valley, including 3M
and PPG, are racing to promote their products for electric and self-driving cars. A1
LG Display won South
Korean government approval to build an organic
light-emitting-diode production plant in China. B4
Moody’s raised concern
about a possible glut of
new office space, predicting
demand will weaken. B6
U.S. stocks edged lower as
shares of Apple and its parts
suppliers fell. The Dow eased
7.85 points to 24746.21. B11
Retail stocks climbed,
boosted by an upbeat holiday shopping season. B10
Oil prices hit a 2½-year
high after a pipeline blast
in Libya, settling at $59.97
a barrel on the Nymex. B10
Hedge fund Harbinger
sued Apollo, saying it was
defrauded into investing in
the LightSquared venture. B2
World-Wide
Homeowners nationwide
are rushing this week to
prepay their 2018 property
taxes before the new law
kicks in and caps the IRS
deduction at $10,000. A1
Syrian rebel groups rejected Russia’s proposed
peace talks, accusing Moscow of failing to pressure
Assad to end the conflict. A7
California wildfires have
sent air quality plummeting
in urban areas and pumped
massive quantities of greenhouse gases into the air. A3
Three U.S. cities filed suit
to force the Pentagon to
properly report dishonorable
discharges to a federal gun
background-check system. A3
College-educated women
would rather see Democrats
than Republicans control
Congress by a 32-point margin, a recent poll found. A4
GRANT FALVEY/ZUMA PRESS
The tax-code overhaul
could hurt some banks by
slowing the pace of jumbo
mortgages, a bright spot
for the industry. B1
Mallinckrodt is buying
Sucampo for about $840
million in a bid to diversify after regulatory scrutiny hurt opioid sales. B3
TALLY HO: Riders gathered the day after Christmas at Chiddingstone Castle in England. Britain has outlawed dog packs hunting foxes
and other animals, but still allows the hounds to follow a scent along a route. The events have re-emerged as a political controversy.
Old-Line Firms in Auto Race
3M, others promote
their paints, glass and
chemicals for electric,
autonomous vehicles
BY ANDREW TANGEL
Auto makers and popular
ride-hailing services aren’t the
only companies looking to
cash in on the shift to electric
Japan’s consumer prices
crept higher last month,
moving gradually toward the
central bank’s 2% target. A6
Peru’s ex-soccer chief
was found not guilty of racketeering conspiracy by a U.S.
jury, the first acquittal in a
federal probe of FIFA. A5
BY JON SINDREU
Investors are elated by a
booming global economy and
central banks’ promises to
tighten monetary policy only
gradually. The risk in the coming year: that long-term interest rates develop a mind of
their own.
So far, those longer-term
rates have remained subdued,
even as the U.S. Federal Reserve increased short-term
rates three times in 2017 and
other central banks signal that
the era of super-easy monetary policy may soon draw to
a close.
Economists disagree about
INSIDE
FAVORITE RIDES,
FROM JAGS
TO JALOPIES
LIFE & ARTS, A9
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
Economic forecasters score
hits, misses................................. A2
Japanese consumer prices
creep higher................................ A6
not going to get a huge payback in the next 36 months.”
Research firm IHS Markit
projects that the overall market for vehicle cockpit electronics, crash-avoidance and
automation systems, and components for electric, hybrid
and fuel-cell-powered vehicles
Please see CARS page A2
Musk hints at Tesla pickup to
challenge Ford........................... B4
Jumbo Mortgages Cool Down
The jumbo-mortgage market, which rebounded after the financial crisis,
began slowing this year as higher interest rates crimped refinancing.
Some analysts say the new tax law could further slow the pace. B1
Jumbo-mortgage originations
$600 billion
500
Through
3Q
400
300
200
100
0
2005 ’06
’07
’08 ’09
’10
’11
’12
’13
’14
’15
’16
’17
THE WALL STREET JOURNAL.
Source: Inside Mortgage Finance
Overhaul isn’t so big on
jumbo mortgages..................... B1
Corporate taxes now lower,
but not simpler......................... B3
China’s DNA Trove Nets Guilty, Innocent
QIANWEI, China—Schoolchildren in a
bucolic region in western China famed
for steam trains and jasmine flowers
thought little of it when police interrupted classes and asked all the boys to
spit into small plastic boxes.
They weren’t told why, according to
the accounts of several children involved.
From kindergartens through high
schools, hundreds of male students were
ordered to give enough saliva so that a
filter paper inside each box turned from
pink to white. The change indicated that
the sample was sufficient for forensic
scientists to extract the boys’ DNA, or
unique genetic fingerprint. It would also
By Wenxin Fan
and Natasha Khan
in Hong Kong
and Liza Lin in Qianwei
identify biological traits common to
blood relatives of each child.
The police in Qianwei County say their
plan worked. They hoped the operation
would offer clues to the unsolved murder
of two shopkeepers nine years before,
and soon they celebrated the murderer’s
capture in state media.
An added bonus: The police collected
a lot more names they could add to the
world’s biggest DNA database, an essential part of China’s high-tech security
blanket being unfurled across the country as Beijing seeks to better monitor its
1.4 billion citizens.
Nationwide, police have a goal of almost doubling China’s current DNA trove
to 100 million records by 2020, according
to a Wall Street Journal examination of
documents from police departments
across China. To get there, they need to
gather almost as many records each year
Please see DNA page A8
Activist who sought others’ release is
imprisoned............................................................. A6
To Marry My Daughter, and Pay Electronically, Please Add One Sheep
i
i
i
South Africa’s traditional ‘lobola’ payment for brides is clashing with technology
BY ALEXANDRA WEXLER
AND NTHABISENG GAMEDE
Opinion.............. A13-15
Property Report B5-6
Sports........................ A12
Technology............... B4
U.S. News............. A2-5
Weather................... A12
World News........ A6-7
>
how much control central
banks really exert over longerterm borrowing costs, which
are gauged by governmentbond yields. If longer-term
rates suddenly rose, that could
throw cold water on stock
markets that have been hitting
repeated new highs.
That longer-term yields—
especially “real” ones that are
inflation indexed—have stayed
low has helped push money
into risky assets because inPlease see RATES page A7
ture. They are vying to supply
components for the large batteries, sensors to avoid
crashes and interior touchscreen panels expected to aid
tomorrow’s drivers.
“It’s a long-term investment,” said Randy Stone, president of DowDuPont Inc.’s
transportation and advanced
polymers division, which is
working on products for the
automotive industry. “You’re
Homeowners across the nation are rushing this week to
prepay their property taxes
for 2018 before the Republican
tax law kicks in Jan. 1 and effectively raises the levy on
higher-end homes.
The new legislation, which
President Donald Trump
signed into law last week, caps
at $10,000 the amount of state
and local taxes that filers can
deduct from their federal tax
bill. That means those whose
tax bills regularly exceed that
amount could benefit by paying more tax in 2017, when the
deduction has no limit.
Municipal offices in a number of states saw a busy postChristmas rush on Tuesday as
taxpayers calculated the effects of the new law. In Fairfax
County, Va., where property
values have risen sharply in
recent years, hundreds of people lined up at the government
center to prepay. Across the
Potomac River, in Montgomery
County, Md., the county council held a special session Tuesday morning to pass
legislation allowing residents
to prepay their taxes.
The new tax law “is a middle-class tax hike for us, and
we’re trying to postpone at
least some of that for at least
one more year,” said Montgomery County Council President Hans Riemer.
In Massachusetts, local
treasurers welcomed the sudden surge in tax receipts. “It’s
been insane here,” said James
McAuliffe, the town treasurer
in the Boston suburb of Milton, adding that he went to
the bank Tuesday morning to
deposit early property-tax receipts and would likely have to
go again in the afternoon.
“Thank you, Mr. Trump, for
solving my cash-flow issues,”
said Mr. McAuliffe, who estimated that about half the residents of his municipality
would hit the new $10,000
cap. “It’s become a very expensive town.”
The $10,000 limit also covers state and local income and
sales taxes, but lawmakers
Please see TAXES page A4
Police gather blood, saliva samples for world’s largest such database; many aren’t criminals
Peru’s ex-leader Fujimori
apologized for his government’s wrongs after a medical pardon freed him. A6
CONTENTS
Business News...... B3
Crossword.............. A12
Heard on Street.. B11
Life & Arts......... A9-11
Markets............. B11-12
Money & Investing.. B10
and self-driving vehicles. Oldline industrial companies outside of Detroit are joining in,
too.
Manufacturing giant 3M
Co., which makes Post-it Notes
and thousands of other products, and paint maker PPG Industries Inc. are among the
manufacturers racing to figure
out ways to get their adhesives, coatings and other products into the cars of the fu-
Long-Term Rates
Pose Risk for Rally
A Chinese rights activist
was given an eight-year
prison sentence for subversion, the harshest yet in a
crackdown by Beijing. A6
China released a “green
development” index aimed
at pressuring local governments to cut pollution. A6
YEN 113.23
BY DAVID HARRISON
AND JENNIFER LEVITZ
Uber agreed to sell its
U.S. subprime car-lease
unit to startup Fair.com after incurring big losses. B1
Retailers are expanding
consumers’ options for returning merchandise as ecommerce companies compete for convenience. B3
EURO $1.1859
Property
Owners
Rush to
Prepay
Tax Bills
On Boxing Day in Britain, Horses and Hounds on the Chase
What’s
News
HHHH $4.00
A REALITY
CHECK ON
JERUSALEM
OPINION, A15
SOWETO, South Africa—Sisi
Seloane’s family was ecstatic
when she got engaged to her
boyfriend of six months. Then
her fiancé asked to deliver her
traditional bridal price by electronic transfer, to avoid carrying wads of cash in a city notorious for crime.
That’s when the trouble
started.
For three months, Ms. Sel-
oane says her family begged her
to insist on a physical cash exchange. Counting—and burning
incense over—the bridal price
money to alert ancestors to the
new family member is an unshakable tradition for many
South Africans. It can’t be done
when money pops up via a
smartphone banking alert.
Ms. Seloane’s uncles threw
fits. Her father, a priest,
pleaded with her to change her
fiancé’s mind, but she refused.
“At some point my husband
and I wanted to elope because
our families were disagreeing
about everything,” said Ms. Seloane, who lives in the bustling
township of Soweto, famous for
its resistance to white-minority
rule during apartheid.
Three months after the negotiations came to a standstill,
her family begrudgingly accepted the electronic funds
transfer, with one provision:
The fiancé’s family had to buy
them a sheep, as an apology.
Please see PRICE page A8
Nguni cow
.
A2 | Wednesday, December 27, 2017
* *
THE WALL STREET JOURNAL.
U.S. NEWS
Economic Forecasters Score Hits, Misses
BY BEN LEUBSDORF
The only purpose of economic forecasts is to make astrology look respectable, according to a saying attributed
to the late economist John
Kenneth Galbraith.
And, yes, some of economists’ early guesses for the
year turned out to be off base.
Still, the consensus among
forecasters when 2017 was
young has turned out to be
fairly accurate for a number of
closely watched economic indicators including hiring, output growth and inflation.
Here is how economists did
this year for selected economic
indicators, comparing the latest
available actual figures with the
average forecasts in The Wall
Street Journal’s January 2017
survey of academic, business
and financial economists.
Unemployment Rate
Average forecast for Decem-
U.S. WATCH
Falling Fast
The U.S. unemployment rate fell
further in 2017 than economists
had expected.
5.0%
4.5
Average
forecast for
December 2017
4.5%
4.0
Nov. 2017
4.1%
3.5
J F M A M J J A S O N
Notes: Data are seasonally adjusted. Forecast
is from The Wall Street Journal’s January
2017 survey of academic, business and
financial economists.
Source: Labor Department
THE WALL STREET JOURNAL.
ber: 4.5%
Actual (as of November):
4.1%
The unemployment rate
ended 2016 at 4.7%, and economists expected it would drift
down to 4.5% by the end of
2017. Instead, it hit 4.5% in
March and kept falling. As of
November, it was at its lowest
level in 17 years.
Inflation
Average forecast for annual
change in consumer-price
index in December: 2.3%
Actual annual change in CPI
as of November 2017: 2.2%
Forecasters in January
thought the consumer-price
index would grow more than
2% this year, and they seem
to have been right. Inflation
was boosted in early 2017 by
year-over-year gains in energy prices but hit a soft
patch and then stabilized in
recent months, with gasoline
prices lifted by storm-related
disruptions.
All that was enough to
give Federal Reserve officials
enough confidence to keep
raising the short-term interest rate.
Hiring
Forecast for average monthly
change in nonfarm payrolls
during 2017: 166,000
Actual (average for January
through November): 174,000
The pace of job gains has
been slowing for several years
as the U.S. economy approaches full employment.
Employers added an average
of 187,000 jobs a month in
2016. Economists expected a
step down in 2017 and they
got one—though not quite as
big a slowdown as they had
expected.
Real GDP
Average forecast for 2017
(year-over-year growth in
fourth quarter): 2.4%
Actual
(year-over-year
growth in third quarter):
2.3%
Another close one. For
years, economists thought a
pickup in economic growth
was just around the corner,
but temporary accelerations
would fade after a quarter or
two. They again marked up
growth estimates after Donald
Trump was elected president,
anticipating tax cuts and other
fiscal stimulus. Now, the economy is experiencing its best
sustained growth in several
years, and many forecasters
are predicting another solid
performance in 2018 in large
part because of the Republican
tax-overhaul legislation.
short-term rates. One result:
The so-called yield curve has
flattened, which could be a
warning sign for the economy.
Housing
Average forecast for housing starts in 2017: 1.26 million units
Actual in the 12 months
ended November: 1.21 million units
Average forecast for national home prices in 2017,
fourth quarter over fourth
quarter: 4.4% increase
Actual (as of third quarter):
6.5% increase
Home builders have started
work on fewer residential
units than economists had expected as multifamily construction sagged, and home
prices have risen faster than
anticipated due to tight inventory. The outlook for 2018 is
clouded by tax-code changes
that reduce longstanding incentives for homeownership.
Bond Yields
Average forecast for closing
yield on 10-year Treasury
notes in December: 2.89%
Actual yield as of Tuesday:
2.467%
Swing and a miss. Economists had predicted rising
government bond yields in
2017, but the yield on the
benchmark 10-year Treasury
note has moved sideways even
as the Fed has pushed up
Winter’s Wrath Descends on Erie, Pa.
HOUSING
Subdued Inventory
Helps Prices Rise
GREG WOHLFORD/ERIE TIMES-NEWS/ASSOCIATED PRESS
Home prices rose in October
as demand increased and tight
inventories limited supply.
The S&P CoreLogic CaseShiller National Home Price Index rose 6.2% in the 12 months
ended in October, up from a 6.1%
year-over-year increase in September.
Seattle reported the highest
increase, 12.7% year over year.
The 10-city index gained 6%
year over year, up from 5.7% in
September. The 20-city index increased 6.4%, up from 6.2% the
previous month.
“Since home prices are rising
faster than wages, salaries and
inflation, some areas could see
potential home buyers compelled
to look at renting,” said David
Blitzer, managing director at
S&P Dow Jones Indices.
Zillow senior economist
Aaron Terrazas said home building has begun to ramp up but
not enough to match demand.
—Imani Moise
IDAHO
Court Dismisses Bid
To Sterilize Horses
THE WALL STREET JOURNAL
(USPS 664-880)
(Eastern Edition ISSN 0099-9660)
(Central Edition ISSN 1092-0935)
(Western Edition ISSN 0193-2241)
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DIGGING OUT: Residents of Erie, Pa., on Tuesday contended with the aftermath of a Christmas snowstorm. The National Weather Service said the storm brought 34
inches on Christmas Day, a record for daily snowfall in the city. A further 19 inches fell before dawn Tuesday, bringing the total to 53 inches.
CARS
Continued from Page One
will nearly triple to almost
$183 billion by 2022.
There are risks to these industrial companies’ strategies.
Predictions of how cars will
evolve could take longer than
expected or never materialize.
Internal combustion engines
still rule the road. Few jurisdictions allow autonomous
cars on public roads. And car
ownership rates could decline
as riders ditch their own vehicles in favor of car-sharing
services such as Uber or Lyft
or mass transit.
Still, Mark Boyadjis, an automotive analyst at IHS, said
the trend is toward a fundamental change in vehicles.
“We are in a 10-15 year period
of transition that has never
before been seen in this kind
of industry,” he said.
At 3M, the Minnesotabased manufacturer best
known for household items
that include sandpaper and
masking tape, executives and
scientists are focusing on how
to tailor the company’s product lines for what the industry
broadly refers to as auto electrification—the evolution of
cars into electrically powered
vehicles packed with electronics.
The aim is to fill electric, hy-
CORRECTIONS AMPLIFICATIONS
Readers can alert The Wall Street
Journal to any errors in news
articles by emailing
wsjcontact@wsj.com or by calling
888-410-2667.
Tomorrowland
The growth of electric and
autonomous vehicles is expected
to drive demand for new
specialized automotive parts.
Hybrid and
Electric Vehicles
Advanced
Driver-Assist
Systems
ACKERMAN + GRUBER FOR THE WALL STREET JOURNAL
A federal appeals court dismissed an effort to allow the
sterilization of a herd of wild
horses in Idaho.
The Ninth U.S. Circuit Court of
Appeals this month granted a request by the U.S. Bureau of Land
Management to stop the effort.
Documents filed by the BLM
seeking the dismissal of its own
appeal didn’t include a reason.
The BLM in 2015 released a
plan to sterilize horses in the
Saylor Creek Herd Management
Area and replenish the herd with
wild horses captured elsewhere
to maintain 50 to 200 horses.
The American Wild Horse
Campaign, The Cloud Foundation
and Return to Freedom sued in
2016, fearing the case could set
a precedent. A U.S. District Court
in Idaho ruled in September that
the herd had to be able to produce healthy foals. Federal officials didn’t return calls Tuesday.
—Associated Press
102.6
Cockpit
Electronics
24.6
34.4
12.8
TOTAL
REVENUE
30.1
45.7
$67.5B
TOTAL
$182.7B
2017
2022
PROJECTION
Source: IHS Markit
A 3M demonstration shows how the company’s adhesive products can work with robotic machines.
THE WALL STREET JOURNAL.
brid and autonomous vehicles
with 3M products: films for interior touch screens, coatings
for exterior sensors and cooling
fluids for batteries.
Auto electrification now accounts for a fraction of 3M’s
overall business, up to an estimated $200 million, or less
than 1% its $31 billion in sales
last year.
“In five years, it will be billions, and it will be even bigger as we go,” 3M Chief Executive Inge Thulin said in an
interview. “There’s no doubt.”
3M’s traffic-safety division,
meanwhile, is developing new
types of road markings and
signs to better communicate
with new cars’ navigation sensors, such as lane-departure
detectors. Scientists there
have also been developing
A fourth old-line industrial
company, Corning Inc., has
agreements in place to install
its scratch-resistant Gorilla
Glass—already used in cellphones—in at least 25 models
of cars in coming years, many
of them not yet in production, said Jeff Evenson, chief
strategy officer at the New
York-based maker of specialty glass and ceramics. It is
already in use in two sports
cars: BMW’s i8 hybrid and
Ford’s GT.
Mr. Evenson said Gorilla
Glass used in consumer electronics generated about $1
billion sales in 2016, and the
company expects it to eventually sell as much or more
for automobiles. “We think
this could be a very big business for us,” he said.
PPG is making car
paints more visible to
sensors that guide
autonomous vehicles.
films to camouflage sensors
that monitor whether drivers
are staying awake, and screens
built into rearview mirrors to
display backward-facing cameras.
PPG Industries, the Pittsburgh-based paint and coatings maker, has been developing car paints to become more
visible to electronic sensors
that guide autonomous vehicles.
PPG’s technology chief, Da-
vid Bem, said there is some
hype about the future of driving, but there will be an eventual shift toward more electrified vehicles.
“We can see the wave coming,” Mr. Bem said in an interview. “The timing of the
change is where a lot of the
debate comes in.”
Like 3M, chemical producer DowDuPont is examining how to reduce the weight
of vehicles with adhesives
and other materials, which
would lengthen the time between battery charges. The
Delaware- and Michiganbased company expects more
demand for products such as
nylon that can withstand
higher temperatures in cars
packed with heat-generating
batteries, Mr. Stone said.
.
THE WALL STREET JOURNAL.
Wednesday, December 27, 2017 | A3
* * * * *
U.S. NEWS
Wildfires Scorch the Earth—and the Air
Air quality plummets
in some parts of
California, sending
residents inside
State Prides Itself
On Climate Issues
ISLA VISTA, Calif.—For her
recent hike around an idyllic
seaside lagoon, Mika Leslie
wore shorts, a cotton T-shirt
and a microfiber respirator
mask.
A massive cloud of smoke
smothered the early-afternoon
sun, as the largest wildfire in
state history raged about 15
miles away.
“The smoke has been so
crazy, the moon is red, the sun
is red, and everything is in an
orange glow because smoke is
just covering everything,” said
Ms. Leslie, a freshman at the
University of California, Santa
Barbara.
California’s costliest wildfire
season on record has sent air
quality plummeting in highly
populated urban areas and
pumped massive quantities of
carbon dioxide and other
greenhouse gases into the air,
experts say. That has presented
a challenge for public-health officials and regulators who seek
to limit air pollution in California—where even using fireplaces, wood stoves and outdoor fire pits is illegal on
certain “spare the air” days.
In Southern California, the
Thomas Fire has been burning
through Ventura and Santa
Barbara counties for three
weeks. It’s the largest wildfire
in California’s history.
Just two months earlier,
blazes ripped through Northern California’s wine country.
During those October wildfires,
air quality in San Francisco
was comparable to that in Beijing, officials said. This month,
air quality in some Santa Bar-
AGENCE FRANCE-PRESSE/GETTY IMAGE
BY ALEJANDRO LAZO
Firefighters monitored the Thomas Fire, the largest wildfire in California’s history, in Montecito, earlier this month.
bara and Ventura county communities hit record-high hazardous levels, making it unsafe
for anyone to be outside.
On Thursday, Santa Barbara
County declared a publichealth emergency due to the
air quality.
Anywhere between 20 to 50
people a day have been checking into county clinics and hospitals with symptoms related
to the poor air quality since
the fires began, said Dr. Charity Dean, public-health officer
for Santa Barbara County.
Patients have been prescribed inhalers, pills and
other medications to deal with
the effects of the smoke. Meanwhile, people walking around
with particle-filtering respirator masks have also become a
common sight, with the county
having distributed more than
300,000 such masks free of
charge.
Ms. Leslie, the UCSB freshman, said she got her respirator mask from fellow ultimate
Frisbee teammates after practice was canceled due to the
record-poor air quality.
Her roommate came down
with a suspected case of bronchitis, she said. She has seen
ash fall from the sky, covering
the seat of her bike when she
leaves it parked outside her
dorm, she said.
Health problems from wildfire toxins can include heart
failure, lung disease, respiratory infections, asthma, bronchitis, hypertension and other
issues, according to a presentation last year by the Environmental Protection Agency.
Fresh Air?
California has worked to improve air quality, but major fires are
impeding those efforts.
California Emission
Reduction
Santa Barbara Air Quality
Change in California’s total
greenhouse-gas emissions since
2000.
PM2.5, or particulate matter, in
the air in Santa Barbara.
Thomas Fire Starts
5.0 %.
150 .μg/m³ of PM2.5
2.5
125
100 Severe
0
75
-2.5
50 Moderate
-5.0
25
0
-7.5
2002
’06
’10
’14
Nov. 27
Source: AirNow.gov, California Air Resources Board
Dec. 4
Dec. 11
THE WALL STREET JOURNAL.
The public-health and environmental threats from the
California fires are a challenge
for a state that considers itself a global leader on climate
change and has strict airquality management policies.
The fires “are putting a
lot of carbon pollution into
the environment, in the air,
and that will offset a lot of
hard-won reductions,” Gov.
Jerry Brown said recently
while visiting Ventura
County.
Under Mr. Brown, California has laid out the aggressive goal of reducing greenhouse-gas emissions 40% by
2030, compared with 1990
levels. This year, the state
also approved legislation that
reduces air toxics in communities disproportionately hit
by pollution.
This month, the California
Air Resources Board, which
oversees the state’s air quality and climate-change programs, approved its annual
plan to reduce emissions in
the state, adding measures to
reduce emission and pollution
from forests and natural
lands.
Particulate matter, carbon,
ozone, volatile organic compounds, trace gases, air toxics
and mercury can all threaten
the public during wildfires, according to a 2016 presentation by the Environmental
Protection Agency, which described larger and more frequent wildfires as a global
public-health problem.
The presentation said
nearly a third of the U.S. population was at risk of wildfire
toxins.
WASHINGTON—Three U.S.
cities filed a federal lawsuit
Tuesday to force the Pentagon
to properly report dishonorable discharges to a federal
gun-background-check system
after a court-martialed Air
Force veteran killed 26 people
in a Texas church last month.
The lawsuit, brought by officials in New York, San Francisco and Philadelphia, seeks
to secure full military compliance with federal requirements meant to ensure that
those found guilty of wrongdoing while in uniform can’t
buy guns once they are kicked
out of the service.
In the recent shooting in
Texas, Devin Kelley, who was
thrown out of the Air Force in
2012 for assault against his
wife and stepson, used a gun
he purchased legally but that
he should have been barred
from buying.
The military’s existing reporting system requires people like Kelley to be reported
to a Federal Bureau of Investigation central database used
during standard background
checks to buy weapons.
The Texas case revealed a
systemic failure of the military’s reporting system to forward the required information.
The lawsuit “is intended to
prevent such senseless carnage from ever again being inflicted by current or former
members of the military who
should be blocked from acquiring guns or licenses to
carry guns,” lawyers for the
three cities said.
The cities allege that the
Defense Department is moving
too slowly with internal investigations and with plans to
comply with existing laws.
The lawsuit asks the court
to force the Pentagon to take
action to “diligently imple-
An Air Force veteran killed 26 people at this Texas church last month.
ment, and consistently apply,
the unambiguous laws that
have been on the books for decades.”
In response, Pentagon
spokesman Tom Crosson said:
“The department continues to
work with the services as they
review and refine their poli-
cies and procedures to ensure
qualifying criminal-history information is submitted to the
FBI for entry into the NCIC
[National Crime Information
Center] database.”
After Kelley’s rampage, the
Air Force acknowledged it had
failed to report him to civilian
databases, which in turn
prompted Defense Secretary
Jim Mattis to order a review
of reporting procedures across
all military services.
Weeks later, Army Chief of
Staff Gen. Mark Milley said the
Army had experienced “a significant amount of omissions”
in its reporting system and
had neglected to report to civilian authorities an estimated
10% to 20% of the thousands
of dishonorable discharges
mandated for reporting.
A December report by the
Defense Department’s Office of
Inspector General concluded
the military has a spotty record in informing the FBI
about cases in which its personnel have been court-martialed and convicted of serious
offenses, such as manslaughter, sexual assault and larceny.
According to the report,
2,502 service members were
convicted of serious offenses
in 2015 and 2016.
In 24% of those cases, the
military services failed to submit what are known as “fingerprint cards” so they could
be included in an FBI database. In 31% of the cases, the
services failed to inform the
FBI on the final disposition of
the cases.
“Any missing fingerprint
card and final disposition report can have serious, even
tragic, consequences, as may
have occurred in the recent
church shooting in Texas,” the
report said.
The cities brought the suit
in the U.S. District Court for
the Eastern District of Virginia, where the Pentagon is
located.
©T&CO. 2017
BY BEN KESLING
AND MICHAEL R. GORDON
JAY JANNER/THE SAN ANTONIO EXPRESS-NEWS/ASSOCIATED PRESS
Cities Sue Pentagon in Effort to Curb Gun Violence
Virginia’s Isn’t the First Race to Tie
A Virginia House of Delegates race is a high-profile example of a relatively rare but
perennial phenomenon—determining the winner of a tied
election by drawing lots.
The stakes are unusually
high in Virginia, as a slip of paper placed in a plastic film canister and drawn out of a bowl in
Richmond could eventually determine partisan control of the
state House.
But election experts said a
handful of elections each year
are decided by chance, particularly in local elections, where
there are relatively few ballots cast.
Kristin DeArruda Wharton
and her opponent drew lots after tying 246-246 in a 2014 race
for a seat on the Cook County
Board of Commissioners in rural northeastern Minnesota.
Election officials originally
planned for them to draw A or
Z Scrabble letters out of a
drawstring bag, but they had
concerns that the indentations
on the tiles could be distinguishable by touch.
So each candidate reached in
and drew from two colored
tiles, one blue and one red.
“We both held our palms
closed and at the count of
three, we both opened out
palms,” Ms. Wharton said. Her
MARK GORMUS/RICHMOND TIMES-DISPATCH/ASSOCIATED PRESS
BY VALERIE BAUERLEIN
Canisters are expected to be used in a Virginia drawing this week.
opponent had the red tile, the
winning color because Republicans had dominated in the recent election cycle.
“It was this anticlimactic and
impactful conclusion to the process,” she said.
Some election experts said
choosing an elected official by
chance may feel undemocratic
but it is a better option than
holding a new election.
In Virginia, if a special election were to be scheduled
weeks after the original one, it
would likely be awash in cash
from influence groups and
bring out a new range of voters,
said Stephen Pettigrew of the
University of Pennsylvania’s
Program on Opinion Research
and Election Studies.
“It’s a totally different election in terms of who’s likely to
turn out and their awareness of
the consequences,” Mr. Pettigrew said.
Tie races are rare on a statewide, legislative or congressional level, where tens of thousands of votes are cast. A
National Bureau of Economic
Research study of a century of
election results found that one
of every 100,000 votes cast in
U.S. elections and one of every
15,000 cast in state elections
were for a candidate that officially tied or won by one vote.
In the Virginia House race,
Republican incumbent David
Yancey led in the Election Day
tally by 10 votes out of more
than 23,000 cast. Democrat
Shelly Simonds requested a recount, which on Dec. 19 put her
ahead by one vote.
A three-judge panel found
that one ballot should have
been counted for Mr. Yancey
that hadn’t been, making the
race a tie.
Ms. Simonds tweeted on Friday that she needed cheering
up. She asked her supporters to
register a friend to vote this
holiday season.
Tuesday night, the state
Board of Elections, following a
request by Ms. Simonds’s lawyers, said it would postpone
Wednesday’s scheduled drawing in light of the legal complaint, calling the drawing of
names “a last resort.” The
board didn’t provide further
information on how the impasse would be resolved.
In Minnesota, Ms. Wharton
said she wasn’t discouraged by
the loss. She said she believes
voter turnout has been higher
in her region recently because
people know their vote counts.
“I was willing to accept
whatever the outcome was,
whether it was God, a higher
power or the universe opening
or closing a door for me,” she
said. “I felt at peace with that.
Mostly.”
CREATE YOUR OWN UNIQUE DESIGN WITH
TIFFANY CHARMS AT TIFFANY.COM
800 843 3269
|
TIFFANY.COM
.
A4 | Wednesday, December 27, 2017
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THE WALL STREET JOURNAL.
U.S. NEWS
More Educated Women Favor Democrats
Shift comes ahead of
2018 midterm election;
GOP leaders hope new
tax law will lure voters
When Republicans regained
control of the House in 2010,
they were propelled by a big
swing toward the party among
women. Now, signs are emerging Republicans could be handicapped in 2018 by women shifting away from the GOP.
In particular, women with a
four-year college degree have
moved toward favoring Democratic control of Congress, recent polling shows, helping to
account for a substantial Democratic lead in multiple surveys
on the question of which party
people want to see leading Congress after the midterm elections.
The latest Wall Street Journal/NBC News poll shows Democrats with a 20-point edge
among women when asked
about the control of Congress.
That lead is larger than the 12point Democratic edge among
women during the 2014 midterm election.
The Democratic advantage is
even bigger among women with
college degrees. These women
would rather see Democrats
than Republicans lead Congress
by 32 percentage points, 62% to
30%, far larger than the party’s
edge among these women in
the past two midterm elections,
the latest Journal/NBC News
survey found.
With the two parties now at
about parity among men, the
Democrats’ big advantage
among college-educated women
helps account for the party’s 11point lead among people overall
in the last Journal/NBC News
survey, conducted Dec. 13-15.
While GOP leaders in Congress have said next year’s elections could be challenging, they
said they believe the strong
economy and the just-enacted
tax bill will win over voters. The
party will “do bold things that
work and prove our principles
in practice,’’ House Speaker
Paul Ryan (R., Wis.) said recently.
Journal/NBC News polling
has found that women without
JONATHAN BACHMAN/REUTERS
BY DANTE CHINNI
A polling station in Alabama during a special election for U.S. Senate this month. GOP candidate Roy Moore was defeated.
A Midterm Measurement
Asked which party should control Congress, women with a four-year
college degree have shifted toward favoring Democratic leadership
more forcefully than have other voter groups.
Preference for which party should lead Congress
Percentage point difference between those choosing Democrats and
those choosing Republicans
More Democratic
+30 pct. pts.
2010
+20
+10
More Republican
+10
+20
2014
2017
Women with a Women without All Men with a
Men without
college degree a college degree D+11 college degree a college degree
D+32
D+12
D+6
Equal
Note: Democratic election gains have traditionally come only when the party has a large lead
on this question, due to voting habits and district lines that often favor Republicans.
Source: WSJ/NBC News telephone poll, most recently of 900 adults conducted Dec. 13–15;
margin of error +/-3.3 pct. pts.
THE WALL STREET JOURNAL.
college degrees also have
moved toward favoring Democratic control of Congress in recent midterm elections, as have
men with and without degrees.
In December’s survey, men
without degrees were the most
open to GOP control, with 44%
favoring Republicans and the
same share backing Democratic
leadership.
But women with college de-
In Rural Areas, GOP
Maintains Strength
as “tsunami numbers’’ that
suggested a wave was coming
that could swamp GOP candidates in the 2018 midterm
elections.
Mr. Wasserman said the
trend could hit Republicans
particularly hard in districts
that hold a mixture of women
with college degrees and men
without them.
Some of those districts are
urban-exurban areas that sit
on the edge of cities such as
Cleveland, Cincinnati and both
Raleigh and Charlotte in North
Carolina. A recent gap in turnout between the two voter
groups provides an enormous
advantage to Democrats in
those districts, Mr. Wasserman
said.
His colleague, analyst
Charles Cook, has written that
continued economic improvement had the potential to
move the political environment
in the GOP’s favor but that he
remained “quite skeptical’’ that
this would happen.
Although more women appear to be turning away from
the Republican Party, the dynamic is different in rural areas, where support for President Donald Trump tends to
be strong.
Debra Brydon, a community
health nurse in rural Pennsylvania with a bachelor’s degree,
said that the past year had solidified her support for Republicans.
“The motivating factor for
me is that the Democrats
won’t work with the president,”
she said. “My son is a coal
miner. He’s now worked a full
year with no layoffs. That’s directly related to Trump.”
David Wasserman, House
elections editor for the nonpartisan Cook Political Report, described the Democrats’ edge
with college-educated women
grees have moved most dramatically over time. As a group,
they hit two weak spots for the
GOP: The party traditionally
trails among women, and, more
recently, it has slid in popular-
ity among college graduates
overall.
Stephanie Martin, a 44-yearold mother in Chapel Hill, N.C.,
said she had long considered
herself a Republican and fiscal
Continued from Page One
drafting the bill barred people
from prepaying those other
levies. “It left it up to the localities whether or not they
would allow you to prepay”
property taxes, said Nicole
Kaeding, an economist at the
Tax Foundation.
Some officials urged caution on prepaying property
taxes, given that the new law
didn’t address the issue. In
New Jersey, most towns aren’t
encouraging residents to prepay amid questions about
whether the Internal Revenue
Service would allow tax filers
to take the deduction early,
said Michael J. Darcy, executive director of the New Jersey State League of Municipalities.
The IRS didn’t return a request for comment.
Officials in Westchester
County, N.Y., just north of New
York City, said the county
wouldn’t be able to calculate
final tax obligations for each
of its municipalities before
year’s end. Connecticut, meantime, isn’t allowing prepayment of property taxes.
Nationwide, about a quarter
of taxpayers deducted their
real-estate taxes in 2015, the
latest year available, shaving
roughly $5,000 from the average tax bill, according to Tax
Policy Center data. At least
one taxpayer in three deducted those taxes in Virginia,
Maryland, New Jersey and
Massachusetts.
“This matters most in areas
that have higher levels of state
and local income taxes,”
Ms. Kaeding said. “Think the
D.C. area, New York, California, Connecticut, New Jersey.”
The drafters of the tax bill
say the unlimited deduction
simply cost the federal government too much money and
encouraged big spending by
state and local governments.
Congress’s Joint Committee
on Taxation estimates the
real-estate-tax deduction resulted in about $33 billion less
revenue for the federal government in 2016. The $10,000
cap was intended to raise new
GEOFF MULVIHILL/ASSOCIATED PRESS
TAXES
Gail Trachtenberg and Lewis Eron payed part of their 2018 tax bill in Cherry Hill, N.J., last week.
To Prepay or Not?
Why You May Want
To Pony Up Now
For some taxpayers, prepaying next year’s property taxes
this week, before the end of
the year, could save them
money in 2018, when the new
GOP tax law comes into effect,
according to tax experts. While
individual taxpayers’ circumstances might change and local
requirements vary from state
to state, here are some scenarios in which it might make
sense to prepay:
revenue and offset some of the
effect of the legislation’s tax
cuts.
Many of those worried
about less of a property-tax
deduction next year could still
see a lower overall tax bill, because the GOP tax package
also lowers federal income-tax
rates, said Kim Rueben, a senior fellow at the Tax Policy
Center.
As property values have appreciated, homeownership has
often been the best-performing family asset, especially in
expensive coastal states. Yet
the rush to prepay property
taxes on Tuesday reflects how
the increased tax liabilities for
u You expect you will owe
more than $10,000 for all
state and local taxes next year
and you plan to itemize your
taxes rather than take the
standard deduction, which will
be raised to $12,000 for individuals, $18,000 for heads of
household and $24,000 for
married couples filing jointly.
taxes directly rather than
through an escrow account
set up by your mortgage company. If you pay taxes through
an escrow account and want
to prepay, be sure to discuss
it with your mortgage company so you don’t end up paying twice.
u You pay your real-estate
Speed is essential: The deductions will only be available
until year-end. For more information, contact your local tax
authorities. Also, check out
The Wall Street Journal’s online tax calculator, which could
help you decide:
http://on.wsj.com/taxcalculator
some homeowners may erode
the so-called wealth effect of
rising property values.
Home prices nationwide
were up 6.2% in October from
the previous year, according to
data from the S&P CoreLogic Case-Shiller National
Home
Price
Index
released Tuesday, up from a 6.1%
year-over-year increase in
September. The increase in
home values has been accelerating for 16 consecutive
months.
Weston, Mass., has some of
the highest property taxes in
the state, averaging around
$18,000, said town treasurer
Peter Forcellese. Local officials
are getting 60 to 70 calls a day
from people with questions
about prepaying.
On Friday, several hundred
residents came in to prepay,
and a steady stream is expected all week, he said.
“There is definitely a lot of activity,” Mr. Forcellese said.
“There are a lot of folks looking to get the tax payment in
and get inasmuch as they can.”
Sacramento County, Calif.,
is allowing residents to pay by
year-end a property-tax installment due next April.
Some would pay even more if
they could, but the county
isn’t yet accepting payments
for tax bills further out,
u You aren’t going to be subject to the Alternative Minimum Tax, a separate tax system that doesn’t allow
taxpayers to deduct state and
local taxes.
county spokeswoman Kim
Nava said.
Santa Clara County, in
high-cost Silicon Valley, said
collections for April 2018 installments already total
$422 million, compared with
$303 million at this time last
year.
Bethesda, Md., resident Leroy Walters said he planned to
prepay his taxes because he
typically gets above the new
$10,000 cap in state and local
income and property taxes.
“We would even be willing to
borrow against a home-equity line of credit in order to
prepay,” said Mr. Walters, a
retired Georgetown University
professor.
In Virginia, Fairfax County
tax officials told residents
they could prepay their estimated 2018 tax but couldn’t
guarantee that payments received after Tuesday would be
processed by year’s end. That
announcement sent a rush of
people to the tax collector’s
office.
“What we’re seeing today is
unprecedented,” said Scott
Sizemore, director of revenue
collection for Fairfax County.
“People seem to be taken
aback by the line, but they
seem to have anticipated there
would be a potential wait.”
In New York state, Gov. Andrew Cuomo on Friday signed
an executive order setting in
motion the process for paying
2018 property taxes in advance and suspending laws
that limit partial tax payments. Local officials who administer that process are
scrambling to make accommodations.
In Livingston County, in
New York’s upstate Finger
Lakes region, the county is offering to answer residents’
questions about how much
they will owe in 2018 so that
they can mail in checks beginning Friday, even if their
town tax collectors’ office is
closed.
“With the holidays this creates a bit of a challenge,” said
County Administrator Ian
Coyle.
—Kristina Peterson,
Heather Gillers, Chris Gordon
and Joseph De Avila
contributed to this article.
conservative, though she didn’t
vote for Republican Donald
Trump last year. Now, she
wants Democrats to take control of Congress.
Among the reasons, Ms.
Martin said, was the GOP’s support for former Judge Roy
Moore in the U.S. Senate election in Alabama this month. He
was accused of sexual misconduct with teenage girls; Mr.
Moore denied the accusations.
“I don’t know where the
party is going to from here, but
they are going to have to do a
lot to get me back,” said Ms.
Martin, a former executive who
holds a master’s degree.
Opinions like those could become a point of concern for the
party. College-educated women
make up about 15% of the voting-age population, but they account for a larger share in 39 of
the 60 or so House districts
likely to have the most competitive races next year. In some,
they account for as much as
28% of voting-age residents.
The poll found differences on
pocketbook issues and on impressions of Mr. Trump underlie
the political differences between women with and without
college degrees.
Those with a four-year degree favored Democratic control
of the next Congress by a 32point margin, wider than the
12-point edge among women
without degrees. Those with degrees were more likely than
those without to disapprove of
the GOP tax bill and to believe
Democrats would do better at
looking out for the middle class
and handling the economy.
Mary Strausbaugh, a retiree
with a bachelor’s degree who
lives in suburban Harrisburg,
Pa., said she plans to vote Democratic in 2018, even though she
has long considered herself a
Republican. She said she had
grown uncomfortable with the
GOP’s position on immigration,
among other issues.
Ms. Strausbaugh said her
daughter, a recent college graduate, had suddenly become politically engaged this year, with
a strong lean toward Democrats. “She’s writing Congresspeople. It began with the
Women’s March in January, and
now it’s the ‘me too’ movement,” she said. “She’ll be active all next year.”
WASHINGTON
WIRE
TWITTER
President Predicts
Bipartisan Health Plan
President Donald Trump is
predicting that Democrats and
Republicans will “eventually
come together” on a new
health-care plan for the country.
Sending a Twitter post early
Tuesday while spending time in
Florida, the GOP president wrote
“the very unfair and unpopular
Individual Mandate has been terminated as part of our Tax Cut
Bill, which essentially Repeals
(over time) Obamacare.”
Much of the Affordable Care
Act, the signature domestic policy accomplishment of Mr.
Trump’s Democratic predecessor,
Barack Obama, remains intact.
The sign-up period for the various options was carried out, as
normal, this year.
Republican lawmakers sought
repeatedly this year to repeal
the 2010 health law known as
Obamacare, but couldn’t get it
through the Senate.
—Associated Press
VACATION
Trump Hits Golf Links
During Florida Break
President Donald Trump
played golf Tuesday with one
current and one former PGA
Tour player and a sitting U.S.
senator.
Mr. Trump went to his private
golf club in West Palm Beach,
Fla., after spending Christmas
with family at his Mar-a-Lago
estate in nearby Palm Beach.
The White House said pro
golfer Bryson DeChambeau and
former PGA player Dana Quigley
joined Mr. Trump at the Trump
International Golf Club.
Republican David Perdue, the
junior U.S. senator from Georgia,
rounded out Mr. Trump’s foursome.
Mr. Trump tweeted on Christmas that “tomorrow it’s back to
work in order to Make America
Great Again,” which he wrote is
“happening faster than anyone
anticipated!”
—Associated Press
.
THE WALL STREET JOURNAL.
Wednesday, December 27, 2017 | A5
U.S. NEWS
A Textbook Case in Saving Student Money
BY SARAH CHANEY
Students
and
parents
stressed by rising educational
costs are finding some small
but welcome relief in falling
textbook prices.
The same surge in online
comparison shopping that has
driven prices lower for toys,
electronics and other popular
goods is upending the traditional textbook business model
and forcing sellers to provide
new, cheaper options.
“Students walked into the
bookstore and got sticker
shock. They said, ‘this is ridiculously expensive,’ ” said Michael Hansen, chief executive
officer at Cengage, an educational-services
company.
“Then they went on their
phones and went to Amazon
and said, ‘Are there any alternatives?’ ”
Take the hefty “Principles
of Macroeconomics,” eighth
edition, by Harvard University
economist
N.
Gregory
Mankiw. A recent online
search showed the paperback
Bargain Books
Consumer-price index, change
from a year earlier
Educational books and supplies
All items except food and energy
Goods except food and energy
12%
8
4
0
–4
2000
’05
’10
’15
Source: Labor Department via Federal
Reserve Bank of St. Louis
Publishers Adapt
To Changing Market
Textbook publishers are
seeing a shift in customer dynamics.
“It used to be instructors
would come in and say, ‘This is
what you’re going to buy, go
buy.’ Now students are saying,
‘Well, I don’t have to buy
where you tell me,’ ” said Ken
Michaels, chief executive officer
at Macmillan Learning, a textbook provider and online-learning company that is part of
Holtzbrinck Publishing Group.
The company has reduced
its average print textbook prices
by 20% to 25% in the 18 months
through October, he said.
Publishers also are responding in other ways, offering alternative formats such as
e-books, loose-leaf binders and
interactive digital books.
Cengage is offering more
lower-price digital products,
such as online reading materials coupled with quizzes, videos and test preparation, CEO
Michael Hansen said.
McGraw-Hill Education Inc.
says about 63% of its sales
came from digital products in
the first three quarters of this
year, up from 34% in 2013.
“We cannot as an industry
keep raising our costs,” said
Scott Virkler, chief product officer for McGraw-Hill Education’s
higher-education division.
THE WALL STREET JOURNAL.
version was available new for
$206 on Barnes & Noble
Inc.’s barnesandnoble.com,
$148.44 through Amazon.com
Inc. and for a minimum of
$80.68 on eBay Inc. Cengage
offered it as an e-book start-
ing at $64.99.
On many sites, students can
rent the book for less, including for $51.71 for 60 days on
barnesandnoble.com and for
$49.49 for three months at
Cengage.
For consumers willing to
purchase a different introductory macroeconomics textbook, OpenStax, a nonprofit
that openly licenses college
textbooks, offers a free downloadable copy of “Principles of
Macroeconomics” by University of Mary Washington economics professor Steven A.
Greenlaw and Timothy Taylor,
managing editor at the Journal of Economic Perspectives.
Mackenzie McNabb, a 19year-old freshman at the University of South Carolina in Columbia, said she bought or
rented all of her fall semester
textbooks online after scouring
sites such as eBay, textbooks.com and Mercari, a mobile app that connects buyers
and sellers of all sorts of goods.
She said she spent about $250
for eight textbooks—or a bit
more than $30 each on average.
“I’m not going to go to the
campus bookstore again,” Ms.
McNabb said.
The average price of a new
textbook sold in-store and online solely through campus
stores was $80 in the 2015-16
academic year, down from a
postrecession peak of $82 the
year earlier, according to the
latest Independent College
Stores Financial Survey by the
National Association of Col-
lege Stores. These figures
don’t include prices for rentals, e-books or used books but
do factor in paperbacks and
textbooks that have digital elements.
While the trends in online
shopping have been gaining
momentum, they just recently
have been reflected in government data.
Prices for educational
books and supplies have fallen
on an annual basis for three
consecutive months, beginning
with a 1.6% year-over-year decline in September, the fastest
rate of decrease for the category going back to 1967, according to the Labor Department.
In October and November,
the prices fell 1.3% and 0.5%,
respectively, from a year earlier. College textbooks account
for about 90% of the goods in
the group, which also includes
books
for
elementaryand high-school classes and
encyclopedias. The category
includes e-books and used
books, but not rentals.
BY REBECCA DAVIS O’BRIEN
A federal jury in Brooklyn,
N.Y., found Peru’s former top
soccer official not guilty of
racketeering conspiracy, closing out a monthlong trial that
laid out allegations of widespread international corruption in the sport.
Manuel Burga’s acquittal on
Tuesday came days after his
two co-defendants, both former top FIFA officials in South
America, were convicted by
the same jury on racketeering,
wire-fraud and money-laundering charges.
Mr. Burga’s was the first acquittal of the more than 40 individuals and entities charged
by the U.S. Justice Department
in its yearslong probe of soccer’s global governing body.
“We are very gratified by the
jury’s findings,” said Mr. Burga’s
lawyer, Bruce Udolf. “Mr. Burga
is very excited about seeing his
family, much of whom he hasn’t
seen in two years.”
The Brooklyn U.S. attorney’s office didn’t have a comment on the verdict.
During the trial, federal
prosecutors portrayed FIFA as
a sprawling criminal enterprise
and accused Mr. Burga and his
co-defendants of accepting
millions of dollars in bribes
from sports-marketing executives in connection with media
and marketing rights for major
regional soccer tournaments.
On Friday, José Maria
Marin, the former president of
Brazil’s soccer federation, was
convicted on six counts and acquitted on a single count of
money-laundering conspiracy.
Juan Ángel Napout, a former
FIFA vice president who led the
Paraguayan soccer federation,
was convicted on three counts
and acquitted on two moneylaundering-conspiracy charges.
Mr. Burga faced a single
count, racketeering conspiracy.
A cooperating government witness, former sports-marketing
executive Alejandro Burzaco,
said Mr. Burga got more than
$3 million in bribes, but evidence presented at trial showed
he hadn’t received the money.
Prosecutors alleged that Mr.
Burga, knowing he was under
EDUARDO MUNOZ/REUTERS
Ex-Peruvian Soccer Chief
Acquitted by Federal Jury
Peru’s former top soccer official, Manuel Burga, foreground, was accused of accepting bribes.
investigation in Peru, had arranged to be paid later.
Messrs. Marin and Napout
were convicted on the racketeering-conspiracy count.
Mr. Burga was the subject
of courtroom intrigue earlier
in the trial after prosecutors
said—without the jury present—that he had threatened
Mr. Burzaco on the stand. According to prosecutors, Mr.
Burga twice made “a slicing
motion across his throat” in
the direction of the witness
stand after Mr. Burzaco described arranging bribes to
Mr. Burga.
Mr. Udolf said in court that
his client suffered from dry
skin.
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.
THE WALL STREET JOURNAL.
A6 | Wednesday, December 27, 2017
WORLD NEWS
Japanese Consumer Prices Creep Higher
Inflation gauge shows
Getting Closer
steady gains toward
Inflation is inching toward the
central-bank target, as Bank of Japan's 2% target.
economy strengthens Change from a year earlier in
core consumer prices*
TOKYO—The
Japanese
economy is picking up more
and moving toward the central
bank’s 2% inflation target,
though only gradually, government data released on Tuesday showed.
The core consumer-price index, which excludes volatile
fresh food prices, rose 0.9% in
November from a year earlier, a
slightly faster pace than an
0.8% increase in October. Another index used by the central
bank to assess the state of inflation, which excludes both fresh
food and energy, rose 0.3% from
a year earlier, compared with a
0.2% rise in October.
Meanwhile, the unemployment rate fell and household
spending rose faster than expected in November, according
to separate government data
released Tuesday, offering additional signs that the economy, which has expanded for
1.0%
Nov. 2017
0.9%
0.5
0.0
–0.5
–1.0
2016
2017
*Excludes fresh food
Source: Ministry of Internal Affairs and
Communications
YOSHIO TSUNODA/ZUMA PRESS
BY MEGUMI FUJIKAWA
THE WALL STREET JOURNAL.
A Tokyo clothing store advertised sales on Tuesday. Prices have been gradually rising.
seven straight quarters, is
continuing to move forward.
“It seems that Japan is finally heading toward a phase
where increases in demand
push up prices,” said Takuji
Aida, chief economist at Société Générale in Japan.
Higher energy prices have
helped lift inflation recently—
a trend that Mr. Aida said may
taper off in the first half of
2018. He said expected wage
growth would likely boost
consumption and prices in the
latter half of the year.
In contrast to other major
central-bank moves toward
raising interest rates, the Bank
of Japan has stuck to its radical
easing program this year, saying it wants to maintain momentum toward its 2% inflation
target. It has kept its target for
the 10-year Japanese government bond yield at zero.
Some analysts say the BOJ
would feel more comfortable
about raising the 10-year yield
target if consumer prices were
rising faster than 1% and appeared on track for 2%.
Japanese central bankers
and policy makers are seeking
to overcome decades of deflation and stagnation by gener-
ating a virtuous cycle of
higher wages, spending and
prices. BOJ Gov. Haruhiko
Kuroda has said he expects
companies will soon start
passing the higher labor costs
that stem from worker shortages on to consumers.
The unemployment rate fell
to 2.7% in November from
2.8% in October, pointing to
the tightest labor conditions
in 24 years. The supply of jobs
also improved. There were 156
jobs available for every 100
job seekers, compared with
155 in October, the strongest
showing in nearly 44 years.
During Japan’s bubble
economy in the late 1980s,
prices rose sharply, pressured
by higher wages and stronger
demand when the jobless rate
fell below 3%, Société Générale’s Mr. Aida said.
Household spending rose
1.7% in November from a year
earlier, beating economists’
expectations for a 0.5% increase. While wage growth for
full-time workers has remained sluggish, payments for
part-time workers rose 2.1%
from a year earlier in October,
according to recent government data.
Despite a slew of strong results, some analysts are cautious about the outlook.
“It would be possible to
achieve the 2% inflation target
if service prices rise at a
faster pace on year on the
back of big and sustainable
wage growth,” said Mizuho
Securities chief market economist Yasunari Ueno. “But such
possibility seems very low.”
Activist Who Sought
Others’ Release Is
Himself Imprisoned
CHEN CHEN/ZUMA PRESS
BEIJING—A prominent human-rights activist who called
himself the “Super Vulgar
Butcher” as he mocked and
pressured Chinese officials
was given an eight-year prison
sentence for subversion, the
harshest sentence handed
down in a sweeping crackdown on rights campaigners.
The Tianjin No. 2 Intermediate People’s Court handed
down the sentence after finding activist Wu Gan guilty of
Wu Gan is known for
attention-grabbing
campaigns on behalf
of defendants.
Smog envelops Beijing. The new indicator is meant to guide local authorities toward more environmentally sound development.
China Adopts Green Growth Index
BY CHAO DENG
BEIJING—China is adopting
a new indicator in a bid to
pressure local governments to
reduce pollution and create
more-sustainable economic
development—though rapid
growth is likely to remain the
Chinese leadership’s priority.
In the works for more than
a year—and talked about for
much longer—the new “green
development” index released
Tuesday is based on 55 markers, from carbon emissions to
disposable income per capita.
An official with one of the
agencies involved in compiling
the index said the indicator is
meant to guide local governments on development and
send a signal to focus less on
rapid growth at the expense of
the environment. A subindex
on quality of growth looks at
contributions to growth from
services and innovative indus-
tries, as well as investment in
research and development.
The green index fits into
the policy platform Chinese
President Xi Jinping laid out
in October for his second five
years in office, placing greater
emphasis on the quality of
growth than the breakneck development that has defined
China’s growth model in recent decades. A meeting last
week that set government economic policies for the coming
year cited pollution reduction
as a top objective and promised to use measurable performance indicators to pursue
higher-quality growth.
Some economists expressed
skepticism about the extent to
which the index will matter in
changing China’s growth
model. While officials have for
years bemoaned widespread
environmental degradation,
reaching economic-growth objectives remains a leading
metric in determining whether
local officials are promoted.
Authorities will rank regions
each year based on the green
index, but it isn’t a formal part
of the performance evaluations for individual officials,
according to the official.
“It’s a bit of a prisoner’s dilemma: No one wants to go
gung-ho in terms of environmental policy when they haven’t seen this in practice
yet,” said Andrew Polk, an
economist at consultancy Trivium/China. “You don’t want to
be the guinea pig.”
Authorities haven’t laid out
any consequences for local
governments should they
score poorly in the green-development assessment. The index is based on data that Beijing collects already and its
compilation doesn’t entail new
inspections of provinces and
cities, according to the official.
Though officials have said
Beijing is reducing its past reliance on an economic-growth
target to drive development, it
isn’t expected to do away completely with the target, which
for 2017 was around 6.5%.
Still, Mr. Xi’s government
has pursued tighter environmental regulation. The Ministry of Environmental Protection has aggressively sent
inspection teams into the
provinces and increased the
number and amount of fines,
according to government data.
Authorities first unveiled
components of the green-development index in late 2016,
shortly after launching China’s
13th five-year plan for 2016 to
2020. Nearly half of the government’s targets involved the
environment, guiding officials
to lower energy use, protect
land, improve waterways and
reduce air pollution.
—Lin Zhu
contributed to this article.
subverting state power. Mr.
Wu will appeal the sentence,
his lawyer Ge Yongxi said.
Mr. Wu became known for
attention-grabbing campaigns
on behalf of defendants and
causes. In one, he posed for
online portraits brandishing
knives he said he would use to
“slaughter the pigs” among officials who had done wrong.
In court, Mr. Wu struck an
irreverent note in his remarks
following the sentence, saying
he was “grateful to the party
for granting me this lofty
honor,” his lawyer said.
“I will remain true to our
original aspiration, roll up my
sleeves and make an extra effort,” Mr. Wu said, playing on
phrases Chinese President Xi
Jinping often uses to exhort
Communist Party officials to
improve their work.
Mr. Wu was among the first
activists and lawyers caught
up in a crackdown that began
in 2015. His case was heard in
court in August after a detention of more than two years.
Activists such as Mr. Wu focused on individual cases instead of challenging Communist Party policy, making them
a greater headache for local
officials than for Beijing. But
their ability to organize and
bring people out on the
ground apparently made authorities nervous.
Human-rights groups have
said Mr. Wu is being persecuted and that it is ironic his
fight for justice for four jailed
men—who were exonerated
last year—had cost him his
own freedom.
The court said Tuesday that
Mr. Wu had made many remarks online that “attacked
state power.” It accused Mr.
Wu of hyping cases that “discredited state organs” by organizing illegal public gatherings and making abusive
comments online about other
people. It called such actions
criminal activities intended to
“overthrow state power and
the socialist system.”
Mr. Wu had also worked as
an administrative assistant at
the Beijing Fengrui Law Firm,
which took on sensitive cases
and became the focus of the
crackdown that resulted in the
detention of hundreds of lawyers, activists and others.
Many were later released.
ASSOCIATED PRESS
Associated Press
Wu Gan, protesting in 2010, got
an eight-year jail term Tuesday.
WORLD WATCH
PHILIPPINES
MARTIN DIVISEK/EPA/SHUTTERSTOCK
Lethal Fire Prompts
Government Inquiry
COLD CURRENT: Czechs plunge into the Vltava river in Prague in a traditional end-of-year swim.
Manila said it would probe
whether safety regulations were
ignored at an office where a fire
killed 37 call-center employees
and vowed to impose penalties
if firms hadn’t met standards.
The remains of 37 employees
of the U.S.-based Research Now
SSI killed by Saturday’s fire in
Davao City have been recovered
and the Justice Department will
launch a criminal investigation.
Labor Secretary Silvestre
Bello said he had told the government’s workplace-health-andsafety agency and the Labor
Ministry’s regional office in
Davao City to probe whether
there were lapses in safety
standards.
The fire broke out at the 14-
year-old New City Commercial
Center and quickly engulfed an
outsourcing business on the upper floor, based on an initial report from the Davao City government.
“We will immediately look
into possible violations of some
safety and health standards,” Mr.
Bello said.
Research Now SSI confirmed
37 of its 500 employees in its
Davao call center were “lost” in
the fire.
—Reuters
PERU
Ex-Leader Fujimori
Apologizes to Nation
Former President Alberto Fujimori apologized to Peruvians
for the wrongs committed under
his government in the 1990s,
two days after he received a
presidential medical pardon that
freed him from prison.
The 79-year-old Mr. Fujimori
spoke in a vaguely worded videotaped message from a hospital in the capital on Tuesday. He
received the pardon after serving less than half of a 25-year
sentence for human-rights
abuses.
“I am aware that the results
during my government were well
received on one side, but I recognize that I have let down
other compatriots,” he said. “To
them, I ask for forgiveness with
all my heart.”
Mr. Fujimori hadn’t previously
apologized, asserting even during
his sentencing hearing that he
was innocent.
He led the country between
1990 and 2000 and was found
guilty in the killings of 25 people
in a campaign against the leftist
Shining Path terrorist group.
—Associated Press
.
THE WALL STREET JOURNAL.
NY
Wednesday, December 27, 2017 | A6A
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THE WALL STREET JOURNAL.
NEAL LIPSCHUTZ EDITOR, ETHICS AND STANDARDS
The Face of Real News
Neal Lipschutz and the standards team hold the WSJ newsroom to the
highest principles of journalism, even in the face of adversity. In 2015, he
helped fight a court order barring the Journal from running a story about
the controversial arrest of a stock analyst in India. Story updates meant
giving the subject another chance to respond—and seek another
injunction. But it was worth the risk to be accurate and fair.
Real journalists and real news from America’s most trusted newspaper.
WATCH HIS STORY AT WSJ.COM/NEAL
#TheFaceOfRealNews
Source: Pew Research Center, Political Polarization & Media Habits, 2014
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.
THE WALL STREET JOURNAL.
Wednesday, December 27, 2017 | A7
WORLD NEWS
Syrian
Opposition
Declines
Russia’s
Talk Offer
Liberians Vote in a Historic Runoff Election to Name President Sirleaf’s Successor
AHMED JALLANZ/EPA/SHUTTERSTOCK
PEACEFUL TRANSITION: Liberians went to the polls in a
runoff election between a former international soccer star
and the country’s vice president,
who are vying to replace Africa’s
first female head of state.
For the first time in more
than 70 years, the West African
nation founded by freed American slaves will see one democratically elected government
hand power to another.
Nearly 2.2 million voters are
choosing between 51-year-old
former soccer star and senator
George Weah and Joseph
Boakai, 73, who has been vice
president for 12 years.
Nobel Peace Prize winner Ellen Johnson Sirleaf, 79, is stepping down after two terms as
president that brought the country out of back-to-back civil
wars.
The runoff had been contested twice in court amid
claims of irregularities and its
original Nov. 7 date delayed.
—Associated Press
Associated Press
Syrian rebels and opposition groups on Tuesday rejected Russia’s proposed peace
talks, accusing Moscow of failing to pressure its ally, President Bashar al-Assad, to end
the conflict.
In a series of statements, 40
rebel groups, including some
of Syria’s most prominent, as
well as political opposition
groups, said the talks expected
next month are an attempt to
“circumvent” the United Nations-led process, which has
made virtually no progress
since it began in 2014.
The rebel groups said Moscow has asked them to give up
their demand for Mr. Assad to
step down. “We reject this,
and we affirm that Russia is
an aggressor that has committed war crimes against Syrians,” the statement signed by
40 rebel groups said. “Russia
has not contributed with a single move to alleviate the suffering of the Syrian people.”
The rebel groups, including
Ahrar al-Sham, Army of Islam
and a number of Western and
Asylum Bids Slow German Courts
BY AYLA ALBAYRAK
Mass Appeal
The refugee crisis in Germany
peaked in late 2015, but in the
country’s courts, it is still
unfolding.
Complaints by migrants
against asylum decisions
300,000
200,000
100,000
0
2014
’15
’16
’17*
*Through September
Source: Germany’s Federal Office for
Migration and Refugees
THE WALL STREET JOURNAL.
taking six months longer to be
heard, he said.
To tackle the stream of new
migrant-related cases, the administrative court in Berlin
has increased its personnel by
a fifth and opened new chambers. All judges must now hear
asylum cases and make deci-
sions that could have life-ordeath consequences.
The court’s workload has
almost tripled over the past
two years, resulting in extended delays in all cases, according to judges and lawyers.
In the past, typical cases coming before the administrative
courts, involving civil servants’ salaries, benefits, or social welfare, could be settled
within months.
Now, says Stephan Groscurth, the court’s spokesman in
Berlin, they can take a year to
a year and a half to be heard.
“Currently we have about
21,000 open cases.…At the end
of 2015, we had 8,194 cases
pending,” he said.
Beatrix Niedack said her client, the state of Berlin, had
been waiting for 20 months
for an employee’s complaint
on a retirement issue to be
heard. “The judge tells me
there are hundreds of cases on
the waiting list,” she said.
Many of the asylum seekers
who file complaints seek to increase their level of protection—which range from full
refugee status or asylum, renewable every three years, to
subsidiary protection, typically granted to war refugees,
which comes with only a oneyear visa and doesn’t entitle
the applicant to bring family
members to Germany.
Almost a fourth of the applicants who filed complaints
the first nine months of this
year had their appeals approved, about twice as many
as in 2016.
With the number of
monthly arrivals having now
dropped to a fraction of its
level of 2015 and early 2016,
fewer than 76,000 pending
asylum applications remained
to be considered at the end of
this year, a fraction of the
500,000 asylum decisions issued in the first nine months
of 2017.
But Mr. Groscurth, the
court’s spokesman, declined to
predict how the drop would
affect the court’s workload.
This, he said, alluding to the
gradual tightening of Germany’s refugee policy, “really
depends on foreign policy.”
Governing bodies in
rebel-held areas also
have rejected Moscow’s
proposed talks.
regionally backed outfits, said
they are committed to the
U.N.-led Geneva process and
called on the international
community to end the bloodshed, now in its seventh year.
Political opposition groups
and governing bodies in rebelheld areas also have rejected
Russia’s proposed talks.
The talks are scheduled
for Jan. 29-30 in Sochi. They
were announced after talks
among Russia and Iran, which
back the government, and Turkey, which supports the opposition.
Syria’s government said it
would attend. Mr. Assad said
recently that the Sochi talks
have a clear agenda of discussing new elections and possibly
amending the constitution.
The fate of Mr. Assad has
been the main point of contention in all previous rounds of
talks. The opposition has long
called for a transitional period
in which Mr. Assad would have
no role, something the government refuses to consider.
The Sochi talks would open
a fourth track of talks between
parties to the complex conflict. The U.N.’s own Geneva
program has been supplemented by “technical” talks in
Astana brokered by Russia,
Iran and Turkey. Russia periodically opens a third track
through Cairo.
JOHN MACDOUGALL/AGENCE FRANCE-PRESSE/GETTY IMAGES
BERLIN—Judge Johannes
Timmel frowned as he pondered whether the young Afghan man before him should
be allowed to stay in Germany
or forced to return home.
“I am not safe in Afghanistan,” the 22-year-old told the
judge. “The Taliban threatened
to kill me because I was a soldier in the Afghan army.”
The man, who asked not to
be named, was appealing the
rejection of his asylum application. But his case wouldn’t
be settled that day. The
judge—a criminal-law expert
drafted two months earlier to
help work through a backlog
of cases—postponed the decision at his lawyer’s request.
Such scenes are playing out
daily in courts. A surge in lawsuits by migrants seeking to
reverse asylum decisions, fend
off deportation threats or obtain more financial support is
gumming up the justice system. The avalanche of complaints is the latest example of
how the arrival of more than a
million asylum seekers since
early 2015 is testing Germany’s institutions, from
schools to job centers, long after the refugee crisis reached
its peak and began receding.
Administrative courts are
working through more than
283,000 cases involving asylum seekers, about twice as
many as the end of 2016, and
are drafting young rotating
judges, such as Mr. Timmel.
As a result, the cases that
used to make up the bulk of
the courts’ workloads—mostly
disputes regarding employment, pay and benefits—are
taking much longer to resolve.
On two recent days in December at Berlin’s administrative court, the nation’s largest,
more than half of the cases were
brought by asylum seekers.
“When this chamber wasn’t
dealing with asylum cases, it
was quicker to get an appointment,” said Stefan Minden, a
lawyer for a group representing Holocaust victims, survivors and their descendants in
compensation claims for Naziera persecutions. His cases are
Housing for refugees in Berlin’s former Tempelhof airport. The number of migrants reaching German is shrinking, but their asylum claims have swamped the courts.
FROM PAGE ONE
RATES
Continued from Page One
vestors get little extra purchasing power for holding
safer securities.
Subdued real rates, for instance, have been a main
driver in 2017 of returns in
global infrastructure debt and
investment-grade corporate
debt, according to a new report by BlackRock Inc., the
world’s biggest asset manager.
Low real rates also boost gold
and real estate, analysts say,
which don’t pay coupons but
generally don’t lose value
when inflation rises.
Complicating matters for
investors: Whether real rates
will behave or not is difficult
to predict because “nobody
knows exactly what sets interest rates,” said Kevin Gardiner,
global investment strategist at
Rothschild Wealth Management.
Real rates have often moved
in lockstep with central-bank
policy—but not always. In the
1970s, runaway inflation
pushed real rates down even
as the Fed and other central
banks increased nominal rates.
Yields on 10-year inflation-
linked Treasurys are currently
near 0.5%. Before the 2008 financial crisis, they hovered at
around 2%. After the Fed unleashed previously unseen
amounts of monetary stimulus,
they hit a record low of minus
0.87% in 2013.
For now, that recent experience has convinced many analysts and investors that policy
makers have strong control
over real rates.
“We are overweight global
indexed bonds,” said Paul
Rayner, head of government
bonds at Royal London Asset
Management. “We’ve done a
lot of analysis on this, and ultimately the biggest driver of
government bond yields still
remains central bank activity,
even for [inflation-linked
bonds].”
Economic theory says central banks can only influence
rates at first, as people ultimately see through their meddling. So unless officials set
policy to reflect the economy’s
long-term economic trends—
which is how the Fed’s Janet
Yellen and Mark Carney at the
Bank of England have justified
keeping rates low in recent
years—inflation or deflation
will follow.
According to this view,
rates are so low because people are saving a lot and these
saved funds can be lent out
and used to invest, a copious
supply that pulls down the
cost of borrowing.
Some money managers and
analysts now warn that the tide
is about to shift, whether central banks keep policy easy or
not. By looking at the share of
the population between the
ages of 35 and 64—when people save the most—research
firm Gavekal predicts real rates
will soon rise as people retire
and spend their life savings,
eroding gains in stock markets.
It “could happen tomorrow
or 10 years from now, but I’m
not counting on the latter,”
said Gavekal analyst Will Denyer.
J.P. Morgan Asset Management argues that aging is already starting to push rates
higher, meaning that 10-year
real yields will be 0.75 percentage point higher over the
next 10 years.
Other investors have a different worry: They fear that
yields will stay low even if
central banks try to tighten
policy, because they are concerned a recession may be
coming. This year, the Fed has
nudged up rates three times
and yields on long-term government bonds—both nominal
and inflation-linked debt—
have stayed unchanged or declined, echoing similar issues
that then Fed Chairman Alan
Greenspan had in 2005.
Indeed, the yield curve—the
yield gap between short and
long-term Treasurys—is now
at its flattest since 2007, and
many investors point out that
in the past this has often preceded an economic slowdown
in the U.S.
Still, investors may read too
much into what yields say
about the economy, said the
Bank for International Settlements, a consortium of central
banks. In new research looking
at 18 countries since 1870, the
BIS found no clear link between rates and factors like
demographics and productivity—it is mostly central-bank
policy that matters.
Does this mean investors can
rest easy because rates won’t
creep up on them? Claudio Borio, head of the monetary and
economic department at the
BIS, said officials may indeed
still raise them to contain market optimism. Central banks in
Canada, Sweden, Norway and
Thailand are thinking along
these lines, analysts said.
The Real Deal
Yields on
inflation-linked
government
bonds have
dropped...
5%
4
3
2
1
0
–1
–2
2005
U.S.
Eurozone
Japan
U.K.
2010
Real rates
Other
Infrastructure debt
...boosting
returns across Investment-grade debt
markets.
Government bonds
EM dollar
EM local
High-yield debt
Infrastructure equity
Core real estate
0%
But some
analysts now
question if
central banks
can control
real interest
rates.
5
10
15
20
15%
10
U.K. U.S.
5
0
–5
Policy rates*
Long-term real rates†
–10
1870
1900
2000
*Rates of the world’s monetary-anchor nation (U.K. until 1919, U.S. after) †Interest rates on
bonds minus inflation expectations
Sources: Bloomberg Barclays indexes via FactSet (yields); BlackRock Investment Institute
(returns); Bank for International Settlements (rates)
THE WALL STREET JOURNAL.
.
THE WALL STREET JOURNAL.
A8 | Wednesday, December 27, 2017
Continued from Page One
as are in the entire national database the U.S. has built over
two decades.
Such mass screening, which
authorities characterize as a
crime-fighting tool, is drawing
criticism that China’s police are
violating people’s privacy and
unfairly targeting innocent or
vulnerable citizens, and is raising questions about what the
data might ultimately be used
for.
Many of the ways Chinese
police are collecting samples
are impermissible in the U.S. In
China, DNA saliva swabs or
blood samples are routinely
gathered from people detained
for violations such as forgetting
to carry identity cards or writing blogs critical of the state,
according to documents from a
national police DNA conference
in September and official forensic journals.
Others aren’t suspected of
any crime. Police target certain
groups considered a higher risk
to social stability. These include
migrant workers and, in one
city, coal miners and home renters, the documents show.
In Baishan, a city bordering
North Korea, residents of a
home for the elderly were told
they were getting free health
checks, the police documents
show. In mountainous Ningxia,
in the northwest, residents
were told a census was being
conducted. In the southern
manufacturing city of Shenzhen, an itinerant worker told
the Journal he had his blood
taken after he was unable to
show a local residency card.
China’s Ministry of Public
Security, the national police
force, didn’t respond to requests for comment, and provincial police departments either didn’t respond or declined
to comment. In a police journal
last year, Liu Shuo, then China’s
chief forensic officer, wrote that
the DNA database had become a
“precision-guided weapon for
crime-solving.”
In the U.S., regulations limit
law enforcement to collecting
DNA samples only from people
who are arrested—or in some
states, convicted—of a serious
crime, unless police obtain a
court warrant or a person’s
consent, or take samples from
discarded items such as chewing gum. The DNA from those
who gave samples after being
arrested or convicted is stored
in a national network administered by the Federal Bureau of
Investigation, which currently
holds 13 million profiles of
those convicted and nearly
three million arrestee profiles,
according to October statistics
from the FBI.
No laws
China has no laws governing
DNA collection outside of criminal investigations, and privacy
protections are limited. A halfmillion DNA profiles police collected as a human-trafficking
measure are now being pooled
into the criminal investigation
database.
China’s database already has
54 million profiles, according to
its forensic police.
In parts of the country, law
enforcement has stored DNA
profiles with a subject’s other
biometric information, including fingerprints, portraits and
voice prints, the heads of the
DNA program wrote in the Chinese journal Forensic Science
PRICE
Continued from Page One
In South Africa’s lobola negotiation, tradition and increasingly ubiquitous technologies,
such as electronic money transfers, email and mobile messaging, are clashing in spectacular
fashion across income levels
and tribal divides.
Lobola is a bridal price traditional among many southern Africans. It is a token gesture of
appreciation meant to cement
the fusing of two families—often it is the first time the two
sides meet—and is customarily
paid in cattle.
The payment of the bridal
price is still widely practiced
among South Africans, including by President Jacob Zuma
and his predecessor Nelson
Mandela. The Zuma family reportedly paid lobola in the
more traditional form of 120
cows—in addition to cash—in
October for a princess from
neighboring Swaziland, who
was made the second wife of
one of Mr. Zuma’s sons. Mr.
Zuma’s spokesman didn’t re-
Police aim to almost
double China’s DNA
trove to 100 million
records by 2020.
the area, most of whom would
have at least one child in
school. The public was told the
collection was part of an antichild-trafficking campaign to
trace lost children, according to
state media, though several students interviewed by the Journal said they were given no explanation at all.
A teenage boy studying in
one of the county’s high schools
recalled that a policeman came
into his class after lunch one
day this spring and passed out
the collection boxes. Male students were told to clean their
mouths, spit into the boxes and
place them into envelopes on
which they had written their
names.
“Of course we were curious
Students at Qingxi High School, above, had saliva collected for DNA testing. A policeman in Guangdong, below, collected a sample.
what this was for,” the teenager
said. "No one told us the reason, neither the teachers nor
the police officers.”
The boy said he joked with
his classmates that the unusual
request was in case they committed a crime some day.
Children at other county
schools told similar stories.
Qianwei police later wrote in
the state media report that the
DNA campaign allowed them to
narrow the possible suspects
and helped them trace the
killer, who confessed. Qianwei
police declined to comment further.
Some police departments are
wary of public blowback. In
2013, police in eastern China’s
industrial town of Binzhou drew
public ire when they swabbed
3,500 students as part of a
probe into petty theft of cellphones and computers on a college campus. State-backed media joined in the criticism. Just
because police want to solve every case, one newspaper editorial said, doesn’t mean they can
go after so many innocent people.
The Ministry of Public Security said in 2015 it was premature to record DNA for all citizens because it would create an
issue of ethics and privacy.
Other countries that have considered building a DNA database of all citizens, including
Portugal and Kuwait, have backtracked in the face of public opposition, according to local
news reports.
A government expansion of a
national database for the U.K.,
led by the administration of former Prime Minister Tony Blair,
was struck down by the Euro-
THE WALL STREET JOURNAL.
pean Court of Human Rights in
2008, which said keeping innocent people’s DNA records on a
register breached the "right to
respect for private life.”
Across
China,
anyone
stopped in the street by police
can wind up in the database.
Huang Quanlai, a 22-year-old
who sorts packages for a living,
said he was hauled from a public square in Shenzhen while
chatting with his brother one
evening last winter. Cops bundled them into a van after the
brothers could only show national identification cards, not
local residence permits, Mr.
Huang said.
He was released from custody after officers pricked his
finger for blood. Nobody told
him why, and he didn’t ask.
“That had happened to my
friends before,” said Mr. Huang,
adding that he wasn’t too worried by the experience. “I didn’t
do anything anyway.”
Last year, detectives in
northern China nabbed a serial
killer, dubbed “Jack the Ripper,”
who had raped and mutilated 11
women and girls over 14 years.
The culprit was arrested and
confessed after being traced
from a DNA sample taken from
his uncle, who had been arrested for bribery, according to
state media, which cited the
case to laud the technology.
Chinese police sometimes try
to draw connections between
ethnic background or place of
origin and propensity for crime.
Police officers in northwestern
China’s Ningxia region studied
data on local prisoners and noticed that a large number came
before making its calculation, in
cash as well as cows. The
groom isn’t left out though: The
app calculates his ability to pay,
asking whether he has a skilled
job, lives at home with his parents, or owns a car.
“The app echoes society’s
sentiments on lobola,” said
Robert Matsaneng, the app’s
creator. “The practice has been
distorted by consumerism. It
really can break a relationship.”
Mr. Matsaneng knows this
first hand: A recent engagement
didn’t work out so he bought a
motorbike with the money he’d
saved for lobola.
Technology is changing the
custom of lobola in other ways,
including the traditional element of surprise surrounding
the figure. The desire for clarity, and preparation, has led
more families to connect in advance, discussing lobola via
messaging apps like WhatsApp.
“In the olden days, there were
no pre-negotiations. Now it is
common,” said Kedibone Mooi,
an executive and business
coach, who has been involved in
about a dozen lobola negotiations for family and friends.
When couples disagree over
lobola, however, it can be terminal for the relationships.
Thozi Mbabane’s engagement to Lebogang Mahibila fell
apart after months of negotiations last year. Mr. Mbabane,
40, a part-time lecturer, typed
up a letter requesting that his
family be allowed to visit 38year-old Ms. Mahibila’s family
to officially begin the negotiations for lobola, and emailed it.
That’s when Ms. Mahibila’s
family had a cow of their own.
“My family rejected the
typed letter because it is not
the way lobola is done,” said
Ms. Mahibila, who works as a
chef in a canteen. “It is not our
culture to type such letters; it is
disrespectful. It has to be handwritten. And they did not want
a letter that was sent via
email.”
“We had to end it,” said Mr.
Mbabane, who took his family’s
side. “I do not want to deal with
people who do not believe in innovation. That’s the future.”
Not everyone is keen on the
practice. In Harare, Zimbabwe,
lawyer Priccilar Vengesai recently asked the country’s highest court to make a ruling on
the constitutionality of lobola,
Genetic Tracking
China wants to increase its police database of DNA records to
100 million by 2020, far exceeding troves in the U.S. and U.K.
China
60 million
50
40
U.S.
U.K.
U.K . starts database
U.S . starts database
China starts database
30
20
10
0
1995
2000
2005
2010
2015
Note: Records include individual profiles plus crime-scene evidence samples.
Sources: Police journals and documents (China); FBI (U.S.) ; National DNA Database (U.K.)
spond to a request for comment.
Many young people want
quicker and simpler ways to
manage the negotiations, including payment that doesn’t
require grazing room, while
some parents hope to recoup a
portion of the money they’ve
spent raising an eligible, educated daughter. Messaging and
payments technology should
make lobola much easier:
speeding communication across
a country around twice the size
of France, and helping endure
negotiations that easily stretch
into monthslong affairs where
dozens of family members barter over the cost, and even the
cow-to-cash conversion rate.
But attempts to drag lobola
into the modern age have left
many families—and couples—
smarting, from the method of
payment to the valuation of a
future wife. More than 110,000
have downloaded the Lobola
Calculator, an app that asks for
a bride’s age, education, employment status, number of
children as well as whether she
can bake and her inclination toward housework—one choice is
“Someone must do it for me”—
from three towns. They decided
to collect genetic material from
boys and men from every clan
to bolster the local DNA database, police said at the law-enforcement DNA conference in
September.
Door to door
The police went door to
door, telling people they were
conducting a census or registering families of missing persons.
In one town, the police said
they were studying disease patterns in the area, enlisting the
help of teachers and medical
workers to collect samples, according to a paper presented at
the conference.
“We’re transforming DNA
technology from simply a criminal investigation tool into an
important initiative for social
control and safety keeping,” the
Ningxia police wrote in the paper.
Taking blood samples often
leads to conflict with the public,
police in the northeastern province of Heilongjiang told the
DNA conference. Other police
have questioned the rationale of
a database that contains the records of so many innocent people, given that most crimes are
committed by repeat offenders.
Police in Daqing, an oil town
in Heilongjiang, noted that all
new residents there are required to give biological samples because migrants, they
said, are statistically more likely
to commit crimes. The trove of
340,000 DNA profiles they collected had helped solve only 136
crimes, they said.
“A bigger database is better
than a smaller database in helping solve crimes,” said Jiang Xianhua, a retired forensic police
officer who advised on setting
up the DNA database. “But the
word biggest doesn’t mean it
has the best coverage of criminals.”
Police chiefs from some cities, including Hefei in eastern
China, said at the meeting that
they limit DNA collection to
criminals and other people suspected of breaking the law.
In Xinjiang, a Muslim-majority region torn by violence the
government blames on separatist terrorists, authorities are
collecting DNA samples of all
residents between the ages of
12 and 65, according to official
documents uncovered by Human Rights Watch and reviewed
by the Journal. The Xinjiang police didn’t respond to a request
for comment.
The technology used by police in Xinjiang and elsewhere is
supplied in part by an American
company, according to official
purchase records reviewed by
the Journal. Police labs have
bought DNA sequencers produced by Waltham, Mass.-based
Thermo Fisher Scientific Inc.
Last year, the company hosted a
world-wide conference on DNA
in Vienna, with Chinese forensic
scientists among the speakers.
The “Jack the Ripper” case in
northern China got second
place in the “DNA Database Hit
of the Year Award,” a prize
sponsored by a lobbying firm
employed by Thermo Fisher.
Thermo Fisher said in an
email it is confident it “can adequately protect personal privacy while appropriately balancing the public safety and
national security needs of government.”
One provincial police force
representative at the DNA conference in China said there was
a “dire need” for legislation to
“ensure collection can go
smoothly, and protect the rights
of people.”
Concerns about collection
have even surfaced among rankand-file officers. In Chongqing,
one of China’s biggest cities, officers who handle laboratory
work were asked to supply DNA
samples so police could quickly
identify and discount them if
accidental contamination of
samples occurred.
Some refused, documents
show, citing concerns they were
being treated like criminals.
—Kersten Zhang contributed
to this article.
SIMPHIWE NKWALI/THE TIMES SOUTH AFRICA/ASSOCIATED PRESS
DNA
and Technology last year. One
provincial police force has
floated plans to link the data to
a person’s information such as
online shopping records and entertainment habits, according to
a paper presented at the national police DNA conference.
Such high-tech files would create more sophisticated versions
of paper dossiers that police
have long relied on to keep tabs
on citizens.
Marrying DNA profiles with
real-time surveillance tools,
such as monitoring online activity and cameras hooked to facial-recognition software, would
help China’s ruling Communist
Party develop an all-encompassing “digital totalitarian
state,” says Xiao Qiang, adjunct
professor at the University of
California at Berkeley’s School
of Information.
China is playing catch-up on
the use of DNA for detective
work. A national DNA database
was added as a crime-fighting
tool in 2003, and collection
scaled up only in recent years.
In most countries, however,
DNA databases grow more
slowly because collection is restricted to people convicted of
serious crimes.
In Qianwei County, where
police were investigating the
double murder case gone cold,
police chiefs initially pondered
testing all 130,000 residents in
one town, but they demurred
because they were worried
about public outrage and high
costs, according to a state-media report written by police. Realizing DNA was hereditary,
they decided all they needed
were samples from each clan in
LIZA LIN/THE WALL STREET JOURNAL (TOP); ASSOCIATED PRESS
IN DEPTH
South African President Jacob Zuma dances with his wife
Thobeka Madiba during a traditional Zulu ceremony in 2010.
saying it reduces women to assets and opens them up to
abuse. “This tradition is against
gender equality,” she said. “A
woman’s future is being decided
by negotiations between two
men: her father and future husband. That should change.” The
court has yet to make a ruling.
For now, the bridal price remains a tradition for many. A
recent local radio advertisement for preowned cars touted
the vehicles as a safer investment than lobola, because if
things go south, the car has a
warranty.
And a second marriage? “It’s
like you’re a used car,” Ms.
Mooi said with a chuckle, noting that her second husband,
who also paid her family lobola,
tried to argue depreciation. “I
said to him, ‘What depreciation? Do you know what I’m
worth?’ With my husband, we
have a joke now: ‘You needed to
pay more lobola.’”
—Bernard Mpofu contributed
to this article.
.
THE WALL STREET JOURNAL.
Wednesday, December 27, 2017 | A8A
NY
* * * *
GREATER NEW YORK
Officials
Wary on
Early Tax
Payments
CLAUDIO PAPAPIETRO FOR THE WALL STREET JOURNAL (2)
BY JOSEPH DE AVILA
Neighborhood-coordination officers, like the ones above, are assigned to areas where they spend about one-third of their day working to establish relationships with residents.
NYPD Program Aims to Build Public Trust
But some critics say the department’s community-policing effort has a wide gap to bridge
BY ZOLAN KANNO-YOUNGS
On the rare occasion Albert Scott would talk to New
York City police when he
was growing up in Brooklyn
in the ’80s and ’90s, he said
he was careful to make sure
the conversation took place
in the shadows.
“They were simply a
cold,” Mr. Scott said of the
officers. “We don’t talk to
cops. And that would be
from individuals that were
law-abiding citizens.”
Earlier this month, Mr.
Scott, who is 44 years old
and works in e-commerce,
sat in an audience of about
two dozen East New York
residents at a Brooklyn
YMCA voicing his concerns
to two New York Police Department officers.
Most spoke of low-level
crimes such as abandoned
vehicles taking up parking
spots and noise complaints.
Others asked about a string
of robberies. The officers answered their questions and
passed out photos of young
people suspected of robbing
restaurant delivery workers.
“You guys are really active
in the community, pass the
word on and let them know
this is what’s going on,” Officer Manny Sharma of the
75th Precinct told the crowd.
The meeting is one of
many at the heart of the
NYPD’s neighborhood-polic-
ing program, which began in
2015 under former Comissioner William Bratton.
It was designed to improve community relations
in the wake of unrest
sparked by the July 2014
case of Eric Garner, who
died after a police officer
placed him in a chokehold
during an arrest on Staten
Island, and by the assassination later that year of two
officers sitting in their patrol car in Brooklyn.
The program has been the
hallmark of Police Commissioner James O’Neill’s 15month tenure as head of the
36,000-member department.
While other cities nationwide struggle with rising
crime, New York City has experienced a decline and is on
pace to record fewer than
300 murders for the first
time since the ’50s—and the
neighborhood-policing program has become an NYPD
priority.
Mr. O’Neill discusses the
program at monthly department crime-stat briefings:
Precincts are divided into
sectors that mirror neighborhood borders. Certain
members of the force are
designated neighborhood-coordination officers. They are
assigned to areas where they
spend about one-third of
their day working to establish relationships with residents and investigate low-
Complaint File
Top 10 precincts with the most
civilian complaints made against
the police
BOROUGHS
COMPLAINTS
75
Brooklyn
3,452
73
Brooklyn
2,310
44
Bronx
2,199
46
Bronx
1,884
47
Bronx
1,797
40
Bronx
1,786
79
Brooklyn
1,677
120 Staten Island 1,677
67
Brooklyn
1,627
52
Bronx
1,608
Note: Data are from 2006 through Dec. 15,
2017.
Source: Civilian Complaint Review Board
Andre T. Mitchell
THE WALL STREET JOURNAL.
level crimes, instead of
responding to emergency
calls.
Other police agencies are
taking notice.
The Baltimore Police Department, which has 2,500
members, said it has sent officers to New York City to
learn about the neighborhood-policing program and
have launched a similar initiative.
The 75th Precinct, which
encompasses East New York
and Cypress Hills in Brooklyn, is prime testing ground
for the neighborhood-polic-
ing program. It has long
been one of the most dangerous precincts in New York
City, according to NYPD
crime data.
The area has experienced
tumultuous relations between police and the community. Many residents at
the recent meeting said in
the past they routinely were
stopped by police and rarely
given an explanation. A documentary was released in
2015 titled, “The Seven Five”
about rampant police corruption in the precinct. Civilians filed 3,452 complaints
Temperatures Turn North for Year’s Last Week
Dwight School Plans
To Launch in Dubai
CAITLIN OCHS FOR THE WALL STREET JOURNAL
BY LESLIE BRODY
CHILL VIEW: The day after Christmas brought frigid change in Bryant Park and throughout the city.
against officers from 2006
through Dec. 15, 2017, the
most among all the city’s
precincts.
“It’s a great starting place
to talk about improving,”
said Andre T. Mitchell, chairman of Community Board 5
in East New York. He said he
would like to see residents
have some input in choosing
officers for the program.
“They still have a long
way to go when it relates to
bridging gaps in the community and building trust,” Mr.
Mitchell said. “Not saying all
officers have to be there and
reflect the demographics,
but they should at least have
an understanding of the demographics to be effective.”
Paul Muhammad, 62, a
lifelong East New York resident, said the initiative is
“too little, too late.” He
questioned why it was
started as the neighborhood
is beginning to gentrify. “Are
you preparing a better place
for the people here?” he
asked. “Or the people to
come?”
NYPD Chief of Patrol Terence Monahan, who oversees
the citywide program, said
51 of the city’s 77 precincts
have neighborhood-coordination officers. He acknowledged that it can be a tall
task to ask officers to step in
front of an audience of skeptical residents, many of
Please see POLICE page A8B
As the private Dwight
School in Manhattan gears up
to open a new campus, it is recruiting dozens of American
teachers with perks such as
free housing and tuition for
their children.
The rub is that the new site
is almost 7,000 miles away in
Dubai, a city on the Persian
Gulf where summer days often
top 105 degrees, public kissing
by couples is frowned upon
and women are expected to
dress conservatively.
Jaya Bhavnani, a 65-yearold science teacher at
Dwight’s Upper West Side
campus who has lived in Dubai
before, says she is thrilled to
be joining the school’s newest
branch. “It’s the most Westernized city in the Middle
East, as long as you can respect some basic social
norms” while there, Ms. Bhavnani said.
Dwight is among the latest
schools to venture into Dubai
in the United Arab Emirates, a
federation of monarchies
where Islam is the official religion. A fast-growing business
hub, Dubai has 299 English-
language international options
for preschool through high
school, more than any other
city in the world. They cater
largely to transient expats and
local families seeking educations they believe will prepare
their children to get into top
universities in the U.S. and
elsewhere—as well as careers
in a global economy.
Dubai’s embrace of Englishlanguage international schools
is part of a proliferation, especially in the Middle East and
Eastern Asia.
Dwight School, which also
has branches in London, Seoul
and Shanghai, is launching the
new site as a for-profit entity
with a local partner, Bloom
Education. Tuition will range
from $20,300 to $31,700.
Janecke Aarneas, head of
Dwight School Dubai, said
many parents overseas like
the way successful American
private schools focus on the
individual child’s well-being
and promote critical thinking
over rote memorization. She
said there is great demand for
the International Baccalaureate program, a curriculum offered by Dwight and many
schools world-wide.
From Jersey City, N.J. to
Oyster Bay, N.Y., residents are
hustling to make early payments on their 2018 property
taxes to avoid a hit under the
new tax laws passed by Congress, but some local officials
caution that approach might
not work.
Westchester County officials
said the county will be unable
to calculate the final tax obligations for each of its municipalities before the end of the
year.
“There is no way to do this
responsibly by the end of the
year given all of the laws that
the county must follow under
Westchester’s charter and the
U.S. tax code,” a spokesman for
Westchester County said.
Still, several municipalities
in Westchester are allowing
homeowners to prepay their
2018 property taxes based on
their 2017 bills, he said.
Whether those payments can
be deducted will be determined
by the Internal Revenue Service, he said.
Gov. Andrew Cuomo signed
an executive order last week
permitting municipalities in
the state to collect 2018 property taxes early even as partial
payments. This will allow tax
filers to deduct those levies on
their 2017 tax return as long as
they make their payments by
Jan. 31, according to the governor’s office.
The tax bill signed into law
Friday by President Donald
Trump caps the amount that
tax filers can deduct in state
and local income, sales and
property taxes at $10,000, beginning next year. That has set
off a rush among homeowners
in New York and New Jersey to
pay as much as possible this
year to maximize the deduction
available in the 2017 tax year.
Connecticut doesn’t allow
the prepayment of property
taxes.
“This tax bill has turned
things upside down here,” said
Steven Bellone, county executive of Long Island’s Suffolk
County. “Tax offices across the
Most towns in New
Jersey opted not to
encourage residents
to prepay their taxes
county are getting inundated
with calls.”
Most towns in New Jersey
have opted not to encourage
residents to prepay their property taxes because it’s unclear
if the Internal Revenue Service
will allow tax filers to make
this deduction, said Michael J.
Darcy, executive director of
New Jersey State League of
Municipalities. The New Jersey
Society of CPAs also cautions
that Congress could retroactively disallow prepayment of
property taxes.
The IRS didn’t return a request for comment.
In New Jersey, homeowners
typically can prepay their
property taxes for the first and
second quarter of the next
year. In Jersey City and Hoboken, city officials are allowing
residents to prepay for the
third and fourth quarters of
next year too.
Jersey City Mayor Steven
Fulop, a Democrat, said he
wanted to make the change “to
help minimize the negative impacts our working families will
face thanks to the new Republican tax bill.”
Officials in Nassau County
on Long Island are working
with local towns to allow the
collection of property taxes before Jan. 1, said Chief Deputy
County Attorney Lisa LoCurto.
Oyster Bay’s tax office on Long
Island has extended hours all
this week and will be open on
Saturday to expedite tax payments, said Joseph Saladino,
the town supervisor.
Residents “realize this situation is unfair,” Mr. Saladino
said, but the change “took
place on the national level, not
on the local level.”
.
A8B | Wednesday, December 27, 2017
NY
THE WALL STREET JOURNAL.
* ***
GREATER NEW YORK
METRO MONEY | By Anne Kadet
Companies Pile On Benefits for Pet Parents
Continued from page A8A
whom have long feared and
distrusted the police.
To jump-start the initiative,
Chief Monahan has made himself available for neighborhood
meetings, including earlier
this year when he participated
on a panel to speak about
changes in the department.
“What about the fear we
have of police officers?” a
young African-American man
shouted at the chief during
the meeting. “Just coming
here I’m still scared.”
Chief Monahan spoke with
T
C
hief Executive Officer
Aaron Shapiro isn’t a
dog person. “I’m allergic,” he says. But he believes
dogs create a calmer, happier environment.
“All the great benefits of
having a pet, it applies to the
workplace too,” he says.
The 50-member Huge Paws
Club enjoys a $2,000 budget
to stock the office biscuit cart
and fund activities like dog
birthday parties and a visit
from a pet psychic.
It’s no surprise that a dogproducts company would accommodate pets. But it’s fun
to visit Bark & Co., known
for its BarkBox dog treat
subscription service, to see
an employer taking “petfriendly” all the way.
At its Chinatown headquarters, 30-plus dogs enjoy
treat-dispensing machines, a
floor-level drinking basin and
cushioned snooze cubbies
built into the wall. The indoor
dog run features a white
picket fence, two waterproof
sofas and potted plants.
“We just hired someone
whose job it is to make this
place even more dog
friendly,” says Carly Strife
co-founder and chief operating officer. “We can do so
much better.”
But a pet-friendly company may need to review its
policies as it matures, says
the man privately after the
event. “You can defuse a situation quickly by having an
honest conversation with
someone,” Chief Monahan
said in an interview. “If they
think you’re real, if you’re
not bullshitting someone.
Right off the bat, then you
can start to talk.”
Chief Monahan expects
neighborhood policing to result in a “cultural change”
from “how it used to be.”
He pointed to Operation
Impact, an anticrime program
that was implemented from
2003 to 2014 and called for
recent police academy graduates to go on foot patrols in
the city’s high-crime areas.
While some say the program
helped reduce crime, Chief
Monahan said it damaged relations between the police and
the community. This coincided
with the NYPD’s heightened
use of stop-and-frisk, which a
federal judge ruled in 2013 violated the rights of AfricanAmericans and Hispanics.
“We were a top-down organization very driven by activity,” Chief Monahan said.
Officer Sharma and officer
James Priore, another neighborhood coordinating officer
in East New York, were both
on patrol during Operation
Impact. They said they felt no
connection with residents. “I
never had the opportunity to
hear from those people,” Officer Priore recalled.
That has changed, they
both said. Earlier this year,
Officer Priore spent his daily
time passing out fliers requesting information about
someone suspected of vandalizing a church in East
New York. The department
received an anonymous tip
and made an arrest.
Most residents, including
Mr. Scott who once feared
speaking with police in public, said it was a major
change from the policing tactics they had grown used to.
“I see the sincerity,” he said.
“I’m sure I’m not the only
one that sees that.”
Zach Miller, vice president of
corporate development and
operations at Aaptiv, an audio exercise app that has
grown to 70 employees since
its launch in 2015.
While the company gladly
accommodates dogs at its
Flatiron district office, it will
soon need a bigger space, and
the modern office towers with
here is also concern
about potential pushback from future hires
who may not like having dogs
around. Bringing a pet to
work is a great perk, he says,
“But it’s not a right, compared to being comfortable in
the office.”
For now, pet-friendly employers pile on the benefits—
including pet insurance,
adoption consulting and even
bereavement leave. Loftey, a
Manhattan apartment rental
startup, offers a week’s paid
leave in the event of a pet
death, and staffers can take
time off for vet appointments.
“We look at it just as if you
had a sick kid,” says cofounder Ori Goldman.
The irony, of course, is that
these companies offer better
benefits to “pet parents” than
many employers offer to
workers with actual children.
I asked Ms. Strife at Bark
if they allow children in the
office along with the dogs.
She says she imagines that
would be fine, but it’s never
come up: “We’ve never had
anyone ask!”
GREATER NEW YORK WATCH
SEXUAL HARASSMENT
NEW YORK
Some State Policies
Put Under Review
Construction Halted
On 9/11 Church
Gov. Dannel P. Malloy is calling for a review of sexual harassment policies in Connecticut’s executive-branch agencies.
The Democrat announced the
review Tuesday to determine
which agencies are in compliance with mandated state training. It will also look at whether
any agencies are providing training that goes above and beyond
what is required by state law.
—Associated Press
Construction has been temporarily suspended on a Greek
Orthodox church destroyed in
the Sept. 11 attacks.
A statement posted on the
website of the Greek Orthodox
Archdiocese of America says the
stoppage was ordered by the
construction company. It comes
amid financial difficulties and
questions over how funds have
been managed.
—Associated Press
MAKE BRE AKFAST
HAPPEN
SO KIDS
CAN BE
HUNGRY
FOR
MORE
I was one of our nation’s hungry kids growing up. Today, 1 in 6 children in America
struggle with hunger. But when they get breakfast, their days are bigger and brighter.
Learning, attention, memory and mood improve. Together, we have the power to
get breakfast to kids in your neighborhood — let’s make it happen. Go to hungeris.org
and lend your time or your voice.
Viola Davis, Hunger Is Ambassador
Hunger Is® is a joint initiative of the Albertsons Companies Foundation and the
Entertainment Industry Foundation, which are 501(c)(3) charitable organizations.
Photo By: Peggy Sirota
POLICE
larger floor plans in Midtown
and the Financial District typically ban pets, he says.
Laurel Peppino, head of talent
acquisition at mParticle.
Ms. Peppino says the company’s paid-leave policy also
applies to exotic pets such as
iguanas.
Nationwide, just 11% of
workers report their employers allow pets in the workplace, according to the American Pet Products Association.
At Brooklyn-based marketing and strategy agency
Huge, you’ll typically find 20
pups snoozing under desks
and squeaky toys cluttering
the aisles.
ELLEN WEINSTEIN FOR THE WALL STREET JOURNAL
When Meredith Heller adopted Bodie, a
young Beagle
mix, she knew
shelter dogs
often have trouble settling in.
But she wasn’t worried.
Among the benefits offered by
her Manhattan employer, customer data platform provider
mParticle: two weeks paid
“pawternity leave” for workers adopting a rescue dog.
Ms. Heller and Bodie, who
turned out to be perfectly
well behaved, spent their
time off hanging at the dog
run and meeting other canines in their Brooklyn neighborhood.
“It was nice to have that
option to really get to know
him,” she says.
As Americans increasingly
treat their pets like children,
employers are responding by
extending family benefits to
pets. The trend is especially
strong in New York City,
where the closest many come
to having a child is buying a
schnauzer.
“We offer maternity and
paternity leave, and a pet is
another member of the family.
We don’t discriminate just because they aren’t human,” says
.
THE WALL STREET JOURNAL.
Wednesday, December 27, 2017 | A9
LIFE&ARTS
1
MY RIDE | By A.J. Baime
Our Favorite Rides of 2017
The Wall Street Journal’s My Ride column focuses on our love affair with vehicles and the engineering behind them. This year’s stories covered a heavy
metal musician’s custom-built Jaguar, what is believed to be the oldest BMW in the U.S. and the rare Koenigsegg CCX pictured above. Here is a
highlight reel of the most noteworthy My Ride stories of 2017.
2
3
4
1) Sweet Speed From
Sweden
An Agera RS built by Sweden’s Koenigsegg became
the fastest production car in
history when it averaged
277.9 mph on two runs on a
closed section of Nevada
highway in November. Private-equity investor Jeffrey
Cheng of Newport Beach,
Calif., was there to witness
the event. In June, Mr.
Cheng appeared in the My
Ride column with the vehicle you see at top—a 2008 Koenigsegg CCX—and has since taken delivery of a new Koenigsegg Agera
RS. Enjoy these photos. These
Swedish vehicles are so rare (fewer
than 150 Koenigseggs have been
built since the company started in
both. A California company
called Icon builds so-called
5
Derelicts—old cars that retain their rusty patina on the
outside but are rebuilt for
performance on the inside.
This one-of-a-kind example,
which began its life as a 1948
Buick Super 8, belongs to
Tim Vest, a JetBlue pilot out
of Livermore, Calif., who paid
“well into the six figures” for
it. “When I shoot past a car
on…windy curves, I love to
see the expression on the
driver’s face,” he told us. “He’s
1994), the odds are long you’ll ever
thinking: What the hell is that?”
lay eyes on one in person.
Guy Newmark and his 1964 Porsche
356C. Mr. Newmark threw a party
to honor the moment the odometer
on his Porsche flipped to mark a
million miles. The 356 is Porsche’s
first production model, introduced
in 1948, and Mr. Newmark received
this one as a gift from his father
upon graduating the University of
California, Berkeley, in the 1960s.
How many miles are on his Porsche
now? About 1,006,300, he says.
“I’m on my way to two million.”
2) The Stealth Power of a
‘Derelict’
4) A Heavy Metal Star’s
Favorite Metal
Is it a 69-year old Buick? A 650horsepower street screamer? It’s
3) The Million-(Plus)-Mile
Porsche
In January we reported the story of
Los Angeles-based yacht broker
“I’m just a Jag nut,” Nicko
McBrain says. The Boca Raton,
Fla.-based drummer for
the British band Iron
Maiden is the proud
owner of what he calls
Priscilla, a roughly
$150,000 2013 XKR-S
customized at the Jaguar factory in Britain.
Signage all over the vehicle is in Iron
Maiden’s heavy metal
font, and the Jag
Growler logo has been
redesigned to look like
Eddie, the band’s monster mascot. Mr.
McBrain owns four Jaguars, but he says he has two
more on the way, including a
Project 8, which the company is
billing as the most powerful
street-legal Jaguar in history.
5) The Ultimate Aston
Martins
Joe Clark, the Seattle-based cofounder and chairman of Aviation
Partners (a maker of wing tips for
Boeing aircraft), first drove his father’s Aston Martin when he was
16. He got a ticket and ended up
in court. Apparently, he was sentenced to a lifelong passion for
Aston Martin, because today, Mr.
Please see MY RIDE page A10
CLOCKWISE FROM TOP: TED7 FOR THE WALL STREET JOURNAL; JOSEPH PHILIPSON FOR THE WALL STREET JOURNAL; JOSH RITCHIE FOR THE WALL STREET JOURNAL; RAY EWING FOR THE WALL STREET JOURNAL; ANGELA DECENZO FOR THE WALL STREET JOURNAL
ANALYSIS
FILM FANS SEE SILVER
LINING IN DISNEY-FOX DEAL
JOE MCKENDRY
BY BEN FRITZ
MEGA-DEAL-MAKING usually isn’t
good news for a wide variety of
content, be it news, local radio or
filmed entertainment. Common
sense would dictate that’s especially
true when the deal-maker is Disney,
the company that has turned movie
production into Procter & Gamblestyle brand management.
But here’s a glimmer of hope for
movie lovers: One of the outcomes of
Disney’s $52.4 billion deal to acquire
most of the assets of 21st Century
Fox is that it’s likely to be good news
for those who want to see Hollywood’s most powerful studio make
more than Star Wars trilogies, Marvel superhero stories and remakes of
animated classics like “Beauty and
the Beast.”
Close observers of Disney CEO
Bob Iger were confident that once
he got control of Fox’s movie stu-
dio, he’d pluck out its most valuable franchises, like Avatar and the
X-Men, and close the rest.
Mr. Iger, after all, is the man who
sold off his company’s iconic specialty films unit Miramax and closed
Touchstone, its division focused on
original films for adults, because
they didn’t make as much money as
big-budget branded films. His approach, cold as it might seem, has
been successful: Disney makes consistently bigger profits from the
movie business than any competitor.
Fox produces a much wider array
of films including original films for
adults, like this month’s Steven
Spielberg thriller “The Post.” Sometimes they’re huge hits few people
saw coming, like “The Martian.”
Others struggle to get noticed, like
the recent Kate Winslet romantic
drama “The Mountain Between Us”
and the historical tale “Battle of the
Sexes.”
Please see DISNEY page A11
.
THE WALL STREET JOURNAL.
A10 | Wednesday, December 27, 2017
LIFE & ARTS
MY RIDE
7
6
Continued from page A9
Clark is the owner of
very exclusive Astons.
We focused on Mr.
Clark’s One-77, a 220mph vehicle of which
only 77 were built, and
the Vulcan pictured, a
“gentleman’s race car”
(it isn’t street legal) capable of 820 horsepower. “Each of these cars cost
over $2 million,” Mr. Clark said of
these British-built autos. “I have
been offered double that for
them, but I bought them to drive,
not to sell.”
6) Wait, Is That VW Van
Sideways?
Jeff Bloch, a Washington, D.C., police sergeant, builds bizarre vehicles to race in the 24 Hours of
Lemons series. What is Lemons
racing? “It’s a nationwide endurance racing series, and at the same
time, a contest for who can make
the coolest, most absurd racing
car,” Mr. Bloch explained in August. Among his creations is the
100-mph Trippy Tippy Hippy Van,
a 1976 Volkswagen bus tipped on
its side. And Speedy’s Weenies, a
hot dog stand welded onto a Suzuki SUV. With his team (the Gang
of Outlaws), he is working on a
race car that looks like a submarine for 2018. “I have plenty more
bad ideas cooking,” he says.
7) The Oldest BMW in
America?
Colleen Sheehan of Costa Mesa,
Calif., sells Ferraris for a living.
But her favorite car is a 1930 BMW
3/15 DA2 Cabriolet, a vehicle that
tops out at 35 mph. Ms. Sheehan,
along with her twin brother, received this car as a gift from their
father when they were 8 years old.
She believes it is the oldest surviving original-bodied BMW in the
U.S. (The German company completed its first car in 1929, and this
is a 1930 model.) Ms. Sheehan’s
Bimmer is “currently undergoing a
freshening,” she says, “to prepare
it for new adventures next year.”
8) A Muscle Car Made for
Women
In the 1960s, Chrysler executives
realized women were becoming an
important segment of the car market, choosing their own cars rather
than having fathers or husbands
do it for them. So the brains at
Chrysler marketed a muscle car
just for women—the 1969 Plymouth Barracuda Mod Top, which
featured a floral print on the roof.
(They advertised it as “The Car
You Wear.”) The vehicle caught the
eye of a young girl living in Iowa
named Kim Barnes. About 40 years
later, she finally got her own. It’s a
rare beast: Only 937 1969 Barracuda Mod Tops were made. Today,
Ms. Barnes is the Pylesville, Md.-based event
director for the Art in
Motion Concours d’Elegance at New York’s
Monticello Motor Club,
and her Mod Top is still
running on flower
power.
10
8
9) The Fabulous
Thunderbird
The 1957 Ford Thunderbird you see here was a
surprise anniversary
present from Peter Mullin, founder of the Mullin Automotive Museum
in Oxnard, Calif., to his
wife, Merle Mullin. Ms. Mullin, a
Los Angeles-based artist and designer, had driven a 1957 T-Bird
earlier in her life and had voiced
to her husband how much she
missed it. Surprise! She’s a T-Bird
owner again. First introduced for
model year 1955, the Thunderbird
is considered one of the first
American sports cars. “All my passion for motoring, for my husband
and for my memories of youth are
embodied in this one car,” Ms.
Mullin explained.
10) Motoring to a 50th Class
Reunion in a ’52 MG
When we profiled Jon Shuler, an
Anglican priest from Pawleys Island, S.C., and his 1952 MG TD, he
was preparing to take the car and
his wife to his 50th class reunion
at the U.S. Military Academy at
West Point, N.Y. This was the very
car he drove through the gates
with his newlywed wife after
graduating from there in 1967. His
My Ride column made the MG a
hit at the reunion. “People were
all over the car,” he says. “It was
our 15 minutes of fame. We
couldn’t have asked for it to go
any better.”
9
Contact A.J. Baime at
Facebook.com/ajbaime.
CLOCKWISE FROM TOP LEFT: APRIL GREER FOR THE WALL STREET JOURNAL; TED7 FOR THE WALL STREET JOURNAL; MATT ROTH FOR THE THE WALL STREET JOURNAL; EMILY BERL FOR THE WALL STREET JOURNAL; RACHEL SHULER FOR THE WALL STREET JOURNAL
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.
THE WALL STREET JOURNAL.
Wednesday, December 27, 2017 | A11
LIFE & ARTS
WORK & FAMILY | By Sue Shellenbarger
When a Child Won’t Hug Relatives
tion with an adult. Making
eye contact is a foundational
skill. It activates what cognitive neuroscientists call the
social brain—a network of
brain regions linked to such
skills as recognizing faces
and empathizing and engaging with others.
But youngsters under 10
are still learning to interpret
social signals. Making eye
contact can be terrifying to
a socially unsure or shy
child. She hasn’t yet learned
to set boundaries on others’
interactions with her.
Children’s shrinking attention spans can make the
problem worse. Brandon
Billinger’s 7-year-old son,
William, is so active and energetic that he races right
past adult relatives at family gatherings, to play videogames with his cousins, says
Mr. Billinger, of Lenexa,
Kan. He and his wife, Elizabeth, are teaching William
to stop, acknowledge and
greet older family members.
Parents can prepare children for gatherings by talking about whom they might
see and what to expect.
Some parents role-play
greetings at home, using a
teddy bear and talking about how
happy Teddy is to get a friendly
hello from the child. Others make
a photo book of relatives’ faces
and names, to familiarize the child
with family members and why
they’re important to parents.
Children tend not to notice when
their actions offend others, because
they haven’t developed an ability to
empathize at age 5 or 6. Dr. Levine
suggests making up “social stories”—tales or sketches that explain,
step-by-step, various social cues and
people’s responses to them.
Children who still hang back
can be given a job to do, such as
taking guests’ coats. If adults complain, Ms. Faber suggests employing “three little magic words:
‘When he’s ready.’ As in, ‘Sammy
will come say hi when he’s ready.’ ”
ROBERT NEUBECKER
MANY PARENTS welcome
holiday gatherings as a
time for small children to
bond with relatives—until
their little one runs away
and hides when grandma
asks for a kiss.
Smoothing over relatives’
hurt feelings falls to mom or
dad. “That level of discomfort and shyness can make a
child seem rude, and leave
you thinking, ‘I’m a bad parent,’ ” says Joanna Faber, an
author and educator on parenting who conducts workshops on communicating
with children.
Greeting adult relatives
and friends at holiday gatherings can be daunting for a
small child. It’s an emotional
topic for many adults, too,
as shown by a fiery socialmedia response to a recent
blog post by the Girl Scouts
advising against pressuring
children to hug or kiss relatives. Easing the strain requires understanding the obstacles from children’s
points of view, preparing
them for social encounters
and staying patient as they
learn at their own speed.
Most psychologists agree
that children shouldn’t be
forced to hug or kiss adults if they
don’t want to. Five-year-old Ethan
Humphrey used to turn sideways,
arms pressed to his sides, when
adults tried to hug him, as if he
were thinking, “Uhhhh, what are
you doing?” says his father, Darrell, of Charlotte, N.C. He has
stopped pressing Ethan to hug
anyone, telling relatives this
Thanksgiving, “If you want a hug
or a kiss, you have to ask permission, and if he says no, you have to
be OK with that,” he says.
Shaming or embarrassing a
child for avoiding social contact
can interfere with developing the
ability to assert themselves and
build a sense of identity, says Jack
Levine, a New York pediatrician
and an executive-committee member on developmental and behav-
ioral pediatrics at the American
Academy of Pediatrics.
Parents should also avoid trying
to justify a child’s reticence by announcing, “She’s just shy,” Ms.
Faber says. “The danger is that
you’re putting the child into a role
and the diagnosis becomes the disease,” making it harder for the child
to behave differently in the future.
Lindsey Cormack, who enjoys socializing, was frustrated when her
5-year-old daughter, Charlotte,
shrank from greeting guests at their
home. Dr. Cormack of New York, a
political-science professor, wanted
her daughter to make eye contact
and talk to people. But if a relative
approached to hug or talk with
Charlotte, she looked away and buried her face in her mother’s leg.
Dr. Cormack came to understand
her daughter’s temperament and
found a middle ground: She told
Charlotte she didn’t have to talk to
anyone if she didn’t want to, but
that she must acknowledge others
and make eye contact when they
spoke to her. The next time Charlotte hid from a guest, Dr. Cormack
encouraged her to turn and look at
him and bat her eyes in greeting.
Charlotte embraced the new behavior right away. “It was almost a relief for her” to be excused from
having to engage in conversation or
submit to a hug, Dr. Cormack says.
Close holiday encounters with
relatives have been sitcom fodder
for decades. “It’s the universal holiday story—the elderly aunt who
would squish you and kiss you
with the lipsticky lips,” says Ms.
Faber, co-author of “How To Talk
So Little Kids Will Listen.”
Children can become overwhelmed when holiday events upset their normal routines and unleash a barrage of unfamiliar
sights, sounds and smells, says
Katherine Dahlsgaard, a psychologist with the child and adolescent
psychiatry unit of Children’s Hospital of Philadelphia. Those who
are highly sensitive to touch or
smell are especially likely to recoil
from a relative’s handshake or
hug. Even children who usually enjoy socializing can freeze in social
situations, Dr. Dahlsgaard says.
Etiquette experts say learning to
look directly at others who are
speaking to them is among the first
skills children should learn, typically starting around age 3. By 10,
most children can hold a conversa-
FOX SEARCHLIGHT
Fox produces a variety of films
including this year’s Oscar
contender ‘Shape of Water.’
DISNEY
Continued from page A9
That’s why Mr. Iger’s
words were so stunning on a
conference call the day Disney
agreed to buy Fox. Disney has
“largely migrated to the tentpole business,” Mr. Iger conceded, “and the Fox assets enable us to expand that. But
we also like being in the business of making quality movies.”
Cue heads exploding
throughout Hollywood.
It’s not that Disney
doesn’t make good movies.
“Star Wars: The Last Jedi”
got strong reviews. In animation, Disney is in a class
by itself, as evidenced by the
critically acclaimed “Coco.”
To be sure, Fox won’t be
immune from cutbacks. Job
cuts in areas like distribution, home video and marketing are likely. Fox will
probably no longer be an independent studio, but rather
a production division of Disney’s movie operation that
makes fewer than the 24
films it released in 2017.
Nonetheless, Mr. Iger’s
words were significant. Disney has essentially stopped
making films, good or bad, if
they don’t fit into a few narrowly defined categories,
such as super-heroes, Star
Wars, and family animation.
Yet there Mr. Iger was on
the phone with journalists,
pronouncing that he was
“very impressed” with Fox
2000 and Fox Searchlight, the
labels behind the 2016 hit
“Hidden Figures” and one of
this year’s leading Oscar contenders, “The Shape of Water.”
“We fully intend to stay in
those businesses,” Mr. Iger
stated.
What changed? Namely,
the internet. Mr. Iger’s decision to buy the Fox assets is
primarily about his desire to
transform Disney into a formidable rival to Netflix. Entertainment is moving online
and Disney can’t rely on people buying theater tickets,
DVDs and pricey cable subscriptions to power its profits in the next decade. It
needs a direct relationship
with consumers who will pay
something like $10 a month
to access the company’s premium content on any device
at any time.
And the fact is that to
compete with Netflix, you
need a lot of stuff. Netflix
has hundreds of original series and stand-up specials
and documentaries. More
than any human being can
really process.
It’s just getting started in
the movie business. Last
week, it released its first film
with a budget of close to
$100 million, the poorly re-
viewed Will Smith action
flick “Bright.” Behind the
scenes Netflix has become
one of Hollywood’s biggest
spenders on new film projects and its output will likely
soon put the studios to
shame, just as it has done to
networks with its TV shows.
Disney released only eight
films in 2017. Now that Bob
Iger needs more stuff, he may
not care so much whether
each movie his company
makes is as profitable as
“Zootopia” or “Thor: Ragnarok.” In the digital subscription world, content is produced to attract and retain
subscribers, not necessarily
to make a profit on its own.
That’s why Amazon.com
has released some of the
riskiest and most interesting
indie movies of this year,
like “The Big Sick.” It’s one
reason Universal has kept
open its struggling specialty
division, Focus Features,
which is behind the Winston
Churchill biopic “Darkest
Hour”: To ensure a diversity
of movies on the video-ondemand system of parent
company Comcast.
Disney has said it would
make about four new movies
a year exclusive for its family-streaming service.
They’re likely to be along
the lines of 2016’s “Queen of
Katwe” and “The Finest
Hours,” which earned critical
respect but not enough
money to justify their production.
It’s counting on Fox, people close to the deal talks say,
to help supply TV shows and
movies for Hulu, which Disney intends to position as a
streaming service for adults.
Will those films hit theaters first? It’s likely some
will and some won’t. But just
as Netflix only releases movies in theaters so they’re eligible for Oscars, the “quality
movies” that Disney makes
after the Fox purchase will
likely only get time at the
multiplex to build buzz and
make filmmakers happy.
They’ll quickly make their
way online, where Disney is
finding new value in the motion pictures it previously
cast aside.
Victorian Dreams
John Atkinson Grimshaw
British master. Luminous night
scene. Extraordinary composition.
John Atkinson Grimshaw is widely
renowned as the Victorian artist
who mastered the night scene,
and this original oil beautifully
showcases the esteemed
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THE WALL STREET JOURNAL.
A12 | Wednesday, December 27, 2017
SPORTS
FOOTBALL
Why Your Team Didn’t Sign Kaepernick
NFL teams have added 84 quarterbacks since March. Here’s what teams have said about why Kaepernick wasn’t one of them.
BY ANDREW BEATON
COUNTERCLOCKWISE FROM RIGHT: HARRY HOW, BOB LEVEY (GETTY IMAGES); DAVID RICHARD, RALPH FRESO (ASSOCIATED PRESS)
HOUSTON. GREEN BAY. ARIZONA. These
are just a few of the teams that needed help
at quarterback this season after injuries
claimed stars like Deshaun Watson, Aaron
Rodgers and Carson Palmer.
T.J. Yates. Joe Callahan. Matt Barkley.
These are just a few of the quarterbacks
those teams signed to plug those holes.
One player, the most polarizing one in
the NFL, has been conspicuously absent: Colin Kaepernick.
In an injury-plagued season, there has
been a lot of employment opportunity for
NFL quarterbacks. But not for Kaepernick,
the player who launched the controversial
national anthem protests last season.
Since Kaepernick parted ways with the
San Francisco 49ers in March, 62 other
quarterbacks have been signed to NFL
teams, according to Stats LLC. That number
jumps to 84 when including quarterbacks
signed off practice squads. Only two of them
have posted a higher passer rating in 2017
than Kaepernick’s 2016 rating. In all, 70
quarterbacks have taken a snap this season.
If there’s one person who embodies the
craziness of the 2017 NFL season, it’s Kaepernick—the player who didn’t play. The protests he kicked off last year by kneeling during the national anthem took on a new life
in September when President Donald Trump
attacked them. The league’s response to the
protests became a flashpoint that fueled dissension about team owners and a debate
about whether the protests are hurting TV
ratings and live attendance.
Meanwhile, fans all season have decried
the poor state of quarterback play in the
league—which Kaepernick potentially could
have boosted, at least for one team. Instead,
he has spent the season working out and attending to his various social causes.
Now, it’s clear the 2017 season will finish
without Kaepernick taking the field.
Throughout the season, the Journal has documented comments from coaches, executives and owners across the league when
they have been asked, in effect, why. About
two-thirds of the 32 teams have weighed in
with some perspective.
Some said they were simply happy with
their internal options. Others have said they
preferred a quarterback with some familiarity with their offense.
Kaepernick, of course, says there is a
darker reason for this. In October, he filed a
grievance against the league and all 32
teams that alleges a straightforward explanation: collusion.
The grievance says Kaepernick has been
essentially blackballed because of his outspoken political views, which entered the
spotlight last year when he started taking a
knee during the anthem to call attention to
racial injustices and social issues. It says
that since Kaepernick became a free agent,
no team has even invited him for a workout.
That grievance, which will be heard by an
arbitrator, is just getting underway. Kaepernick’s lawyers are in the process of discovery, which includes materials such as emails
and text messages from owners and other
executives. A person familiar with the matter said depositions are expected to begin
T.J. Yates (Texans), Brett Hundley (Packers) and Blaine Gabbert (Cardinals) have struggled this season, as Colin Kaepernick remains unsigned.
around late January.
The NFL has declined to comment, citing
a confidentiality clause for grievances in the
collective bargaining agreement.
“The case for collusion is the case of
common sense,” said Ben Meiselas, a lawyer
representing Kaepernick for Geragos & Geragos APC. “This is not only a fight for Colin,
but for all professional athletes.”
From a cold, numerical perspective, Kaepernick’s case to be signed is simple. A second-round pick in the 2011 draft by the
49ers, he took the team to the Super Bowl
in his second season. His combination of
arm strength and speed made him a near-instant phenomenon. In the last few years, he
suffered some injuries while San Francisco
took a downturn. The 49ers were just 1-10 in
his 11 games as a starter in 2016. Still, he
threw 16 touchdowns and only four interceptions. His 90.7 passer rating was 17th
best. This year, it would rank 16th—just behind Matt Ryan and ahead of Blake Bortles.
At the same time, he became the face of a
movement that roiled the league. While
some lauded it as a peaceful protest draw-
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COMMIT ALREADY | By Morton J. Mendelson
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Rodgers went down with a broken collarbone in Green Bay, coach Mike McCarthy
noted the time Brett Hundley and Joe Callahan have spent with the organization. “The
quarterback room is exactly where it needs
to be,” McCarthy said in October.
The Packers have gone 3-5 with Hundley
as their starter.
Arizona coach Bruce Arians had a similar
response after Carson Palmer went down,
saying they weren’t looking for another
quarterback. In five of their games, they
started Blaine Gabbert—who was sent to the
bench early last season in San Francisco for
Kaepernick.
This phenomenon may have been on full
display most prominently in Houston after
Deshaun Watson went down for the season.
After that, coach Bill O’Brien said the team
discussed signing him.
“Colin Kaepernick’s a good football
player, [but he] hasn’t played football in a
while,” O’Brien said.
Since then, the Texans have played three
quarterbacks and signed four.
—Ben Cohen contributed to this article.
The WSJ Daily Crossword | Edited by Mike Shenk
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
Vancouver
V
ing attention to important issues, others
criticized it as unpatriotic.
But proving that teams didn’t sign Kaepernick because of his political views isn’t
the same as proving that they colluded to
do so. The grievance will have to show a coordinated effort between parties to keep
him from signing.
Still, Kaepernick’s level of production going untapped has only stood out even more
during a season when the quarterbackdriven NFL has been quarterback hungry.
Many playoff contenders saw their starters
go down. Nobody knows whether or not
Kaepernick could have salvaged their seasons. Some pundits have noted Kaepernick’s
style of play may not mesh with every offense. It also may have been a tall task to
expect a quarterback to succeed midseason
without familiarity with a team’s offense.
Kaepernick would potentially be much
more expensive as well; he had a salary of
$11.9 million in 2016.
None of that stopped him from becoming
a shadow that loomed over pretty much every tenuous quarterback situation. After
53 Amazon tablet
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.
THE WALL STREET JOURNAL.
Wednesday, December 27, 2017 | A13
OPINION
Understanding the Trump Show
For
this
viewer, the
meaning of
the Trump
show began
to
change
with
last
BUSINESS
week’s tax
WORLD
bill. Donald
By Holman W.
Trump norJenkins, Jr.
malizes
nothing new
and outré in our politics after
all. He is but an effective parody of the politicians we
have, and have long had.
We are also learning something about the relationship,
in our age, between the political show and movement,
however fitful, on the nation’s business.
Republicans’ performance
at last week’s White House
in celebration of the partyline tax bill may have been
bombastic and obsequious,
but the party placed its bet
on a growing economy. The
show, however odd, exploited the party’s star attraction, Mr. Trump, whom
the cable channels can’t resist, to push out the message
to America “good things are
happening.”
Every bit as hysterical, excessive and embarrassing was
the countershow put on by
Democrats. But they put
themselves on the side of bad
things happening. Nancy
Pelosi, Chuck Schumer and
their junior shadows danced
around the maypole, lighted
candles, burned effigies—in
hope that you will lose your
job in 2018, see your hours
cut, or fail to get an expected
raise.
This probably is an ill-advised bet by Democrats. The
world’s major economies are
in a synchronized upswing.
The world’s central banks are
using the window to withdraw their histrionic and destabilizing monetary accommodations of the past decade.
To the extent that “it’s the
economy, stupid” still trumps,
the GOP will benefit.
Democratic economists are
reworking their “secular
stagnation” models to say
the Trump program is leading not to faster growth but
higher inflation. They are
likely to be disappointed. The
Trump
economy—which
we’ve maintained since before Election Day is the economy you get when you take
President Obama’s foot off
its neck—seems predisposed
to remain benign through
next year’s congressional
election.
Republicans and Democrats,
including
Barack
Obama, have long said our
corporate tax system was
dysfunctional and needed to
be fixed. The rest of the tax
bill may be anticlimactic, but
it broadens the standard deduction, cuts rates a bit, and
slightly reduces itemized deductions, those corrupt and
corrupting schemes by which
Washington rewards you for
redirecting your income to
various lobbying interests
(including state and local
government).
From the Trump show we
are getting steps in the direction of “good government” as
that term has traditionally
and reliably been understood
for decades. And unless 250
years of economic thought is
ready to be junked, increasing the after-tax return on
business investment will lead
to more investment.
How different would a
Democratic party-line tax bill
have been? Probably not
much different on the corporate side, unless you think
the difference between 21%
After tax reform,
we might have to
rethink how America
gets things done.
and 28% is vast and telling.
On the personal side, Democrats would likely have focused on trimming back different deductions (for the
rich!), but would likely have
made it up to voters with a
larger standard deduction
and lower rates just as Republicans did.
It took three Reagan tax
bills and five years before we
got the bipartisan 1986 tax
reform. If that history is
borne out a second time, then
last week’s victory will be a
down payment on better
things to come. This could be
another way the Trump show,
if it creates successes that
both parties eventually want
to own, teaches us something
mysterious about what is required to move our country
ahead now.
Incentives matter, and in
this business of incentives
not all is coming up roses,
however.
The Harvey Weinstein phenomenon, we submit, is really
a Trump phenomenon. The
country has seen sex-abuse
scandals before. It was the
spectacle of Mr. Trump’s election that turned blue-state
America, from which most of
the recent scandals stem, toward genuine repentance and
then toward indiscriminate
intolerance of male sexual aggression in any form.
Unfortunately, when we
stipulate that all accusations
must be believed, we guarantee not only the lodging of
more allegations, but more
false allegations. A few
months ago Mike Pence was
mocked for his practice of
never meeting or dining
alone with a woman who is
not his wife. Now every man
in blue America will have to
adopt such a policy as insurance against a malicious
allegation.
But one thing has come
into focus. At the beginning
of 2017, it was impossible to
figure out how the Hulu production of “The Handmaid’s
Tale,” about a dystopian future in which consensual,
nonprocreative sex is all but
outlawed, became in the
minds of so many liberal
commentators symbolic of
the age of Trump. Now it
starts to make sense.
FDR’s Overreach and Moore
In the 1936
presidential
election,
Franklin D.
Roosevelt
won nearly
POLITICS 61% of the
popular vote
& IDEAS
and 523 elecBy William
toral votes,
A. Galston
one of the
biggest landslides in U.S. history. And as
Robert Dallek reminds us in
his new biography, this
wasn’t only a personal victory for the incumbent president. Democrats ended up
with 75 out of 96 Senate
seats and a 331-89 advantage
in the House.
FDR enjoyed unprecedented freedom of action,
which he proceeded to squander in an ill-conceived plan to
expand the Supreme Court.
The Judicial Procedures Reform Act of 1937 would have
given him the power to appoint up to 6 new justices,
one for every member of the
Court over age 70½.
This proposal was not unconstitutional, strictly speaking. While Article III of the
Constitution creates a Supreme Court, it does not
specify the number of justices, which has varied over
time. But the act would have
weakened the Constitution’s
system of checks and balances. The American people,
who months earlier had given
FDR their overwhelming support, opposed the measure.
So, decisively, did many
Democratic lawmakers. The
bill was bottled up in the
Senate Judiciary Committee
for nearly six months and ultimately died.
I tell this tale to make a
point: When one party controls the presidency and
both houses of Congress, the
defense of America’s constitutional order rests on the
majority party—and ultimately on the people, whose
intuitive sense of constitutional limits in particular
circumstances will determine how far the majority
can go. When partisanship
overrides the defense of institutional prerogatives, the
people become the last line
of defense.
In 1937 and 1938, many of
the Democrats who had
blocked FDR’s court-expansion
plan also opposed the expansion of the New Deal. The
president grew impatient and
eventually decided to go to
war against recalcitrant members of his own party. The
collapse of court-packing gave
way to an attempted purge,
which also failed dismally.
The Democrats lost 72 seats
in the House and seven in the
Senate. Most of the opposition Democrats kept their
seats and joined forces with
Republicans in a conservative
coalition that blocked much of
FDR’s legislative agenda.
There’s a moral to this
chapter of the story as well:
American political parties are
rarely internally homogeneous. How could they be?
Each of the two major parties—the minimum number
needed for a democracy—
must represent a multiplicity
of interests and outlooks.
These intraparty coalitions do
what multiparty systems accomplish through the creation
Lessons for Trump
and the Republicans
from the 1936 courtpacking debacle.
of coalition governments.
They reflect compromises
among disparate tendencies.
Partisan zealots will always
favor ideological purity; partisan realists understand that
quest for purity almost always leads to defeat. Presidents who lend their support
to purges are playing with
fire—all the more so when
they do so in the name of absolute loyalty to their personal agendas.
This brings us to the remarkable turn of events in
the recent special election
to fill Jeff Sessions’s Senate
seat. In 2016, Mr. Trump
won 62% of Alabama’s popular vote, for a margin of 28
points. Then came the battle
between Luther Strange, a
close ally of Senate Majority
Leader Mitch McConnell,
and Roy Moore, backed by
Steve Bannon and right-wing
populist media outlets as
the pro-Trump, anti-McConnell candidate. After defeating Mr. Strange for the Republican nomination by 9
points, Mr. Moore could
manage only 48% of the
popular vote in a 2-point
loss to Doug Jones, who become the first Democratic
senator from Alabama in a
quarter-century.
The morning after, Mr.
Trump’s political advisers
must have informed him that
Mr. Jones won not only because the Democratic base
turned out in force, but also
because many of Mr. Trump’s
own supporters couldn’t
stomach Mr. Moore’s extreme
views and conduct. These
voters drew a line and said,
“No further.”
I hope the president learns
the lesson of this race. Yes,
many Americans have lost
confidence in the establishments of both political parties, and many are seething
with resentment at policies
they regard as contrary to
their interests and beliefs. It
does not follow that they will
stop at nothing to strike
back. A minority of Alabama
voters cheered Roy Moore’s
contempt for the law. But the
voters who made the difference decided that he had
crossed the line. If Mr.
Trump is not careful, they
could end up delivering a
similar verdict on a larger
stage next November.
Don’t Quote Churchill on That
By Lee Pollock
M
ore than 50 years after
his death, Winston
Churchill is everywhere. John Lithgow’s performance as the great prime minister enlivened the first season
of “The Crown” on Netflix.
Gary Oldman is earning praise
for his portrayal in “Darkest
Hour.” A Google alert for
Churchill’s name returns at
least 50 citations daily, many
beginning with “Winston
Churchill once said . . .”
Churchill produced more
than 15 million words during
his lifetime, making him a fertile source for commentators
of all stripes. Buried in that
mountain of copy is something
for everyone. But with these
repeated citations has come
what one scholar describes as
“Churchillian
drift”—the
never-ending circulation of
Churchillisms that sound right
but are, in fact, wrong.
“You can always count on
the Americans to do the right
thing after they’ve tried everything else.” Churchill never said
that. As much as he admired
the U.S. (and delighted in his
American ancestry), he was often frustrated with its policies.
Moreover, whatever criticisms
of the U.S. he might have had in
private, he never would have
voiced them publicly. Churchill
was always careful not to offend the nation he called “the
Great Republic.”
Other oft-repeated quotes
also turn out, upon review, to
be inaccurate:
Many aphorisms
attributed to him
turn out to be fake.
• “A pessimist sees the difficulty in every opportunity; an
optimist sees the opportunity
in every difficulty.”
• “If you’re not a liberal at
20, you have no heart. If you’re
not a conservative at 40, you
have no brain.”
• “However beautiful the
strategy, you should occasionally look at the results.”
• “If you’re going through
hell, keep going.”
• “Success is not final, failure is not fatal: It is the courage to continue that counts.”
The difficulty in trying to
stop the fake Churchill sayings
is that they often reflect his
character and echo the distinctive rhythm and cadence
of his speeches. It’s easy to
imagine Churchill uttering
these words.
Adding to the confusion,
Churchill was prone to repeat
phrases and stories without attribution. Take his reported exchange with Bessie Braddock, a
Labour Party politician. “Winston, you’re drunk,” she allegedly said. His purported reply:
“Bessie, you’re ugly, but tomorrow I shall be sober.” It echoes
a scene from a W.C. Fields film
called “It’s a Gift.” Substitute
“W.C.” for “Winston” and
“crazy” for “drunk,” and you
have the same story.
As another fake Churchill
chestnut has it: “A lie gets
halfway around the world before the truth has time to put
its pants on.” The internet aggravates Churchillian drift—
and also, presumably, the comparable drift for quotes from
Abraham Lincoln, Mark Twain
and others. The accuracy of almost any line or anecdote is
easily verifiable online, but erroneous words have such a
head start and travel so fast
that the truth indeed is still
putting on its pants.
A savvy spotter of fake
quotes, though, can also use
his intuition. Churchill would
have said “trousers,” not
“pants,” which provides a clue
that the story is faulty.
Should Churchill admirers
care about Churchillian drift?
Yes, but perhaps only to a
point. People thirsting for
leadership embrace inspiring
figures from the past. Invoking
the Great Man deserves encouragement, sometimes even
at the price of a qualifying “attributed to.”
As another distinctive
wordsmith, Yogi Berra, once
remarked (apparently accurately), “I really didn’t say everything I said.”
Mr. Pollock is a Chicagobased writer and historian on
the life and times of Winston
Churchill.
BOOKSHELF | By Brendan Simms
Make Way
For the New Boss
Safe Passage
By Kori Schake
(Harvard, 389 pages, $29.95)
O
ver the past decade or so, the geopolitical rise of
China and the relative decline of the United States
have agitated leaders and policy makers across the
world. For many, the key question is not whether the torch
of world leadership will pass from one to the other,
something they consider inevitable, but whether the shift
can take place without a war. At Harvard, the scholar
Graham Allison, with a research team, has studied the
historical precedents for power transitions, and his findings
are not encouraging. In almost every case, he discovered,
conflict was the result. The perennial danger, he explained
in “Destined for War,” published earlier this year, is that
the weakening greater power will force a confrontation
with its growing rival in order to stem its own decline, as
Athens did with Sparta in the
Peloponnesian War. The
results can be disastrous, as
they were for Athens.
The shining exception to
the pattern is the peaceful
shift in global dominance
between 1870 and 1945. Kori
Schake, a research fellow at the
Hoover Institution, tackles this
subject in “Safe Passage: The
Transition From British to
American Hegemony,” a remarkable and timely chronicle—living
history of the best sort. Ms.
Schake takes “hegemony” to mean
not complete dominance but the ability
to set and enforce global rules.
As every American schoolchild used to know, the omens
for future collaboration between Britain and the United
States were anything but good after the American
Revolution. The United States was born in a violent secession, and its origin myths were anti-British: the Boston
Massacre, Bunker Hill, Saratoga, Yorktown. America’s first
major war as an independent republic, in 1812, was fought
against Britain. Throughout the 19th century, millions of
Irish immigrants brought their grievances against England
with them to America’s shores. Even so, as Ms. Schake
shows, conflict was averted at crucial “inflection points,” and
rivalry gave way to collaboration. The credit for this achievement, she argues convincingly, goes largely to the British.
The rapprochement had its roots in the proclamation of
the Monroe Doctrine (1823), which sought to prevent the
establishment of new European colonies in the Western
Hemisphere. Ms. Schake notes that this policy was actually
a British idea, the intention being to exclude European
newcomers and preserve Britain’s existing colonies and
extensive commercial presence. The doctrine itself, once
articulated by the U.S. president, was policed by the Royal
Navy rather than the much weaker American fleet.
The world’s dominant nation, as it weakens,
often goes to war with its growing rival. In the
19th century, power transferred peaceably. Why?
In the 1840s, the two powers clashed over the Oregon
Territory. Britain, though stronger militarily, accepted a
compromise that endures to this day in the U.S.-Canadian
border along the 49th parallel. Then, during the Civil War,
London resisted the temptation to halt the rise of a
competitor-power by supporting the Confederacy—say, by
breaking the Union blockade. Britain’s reasoning, in this
case, rested on the self-interested desire to maintain the
integrity of the blockade weapon for its own use and, in
part, on a growing abhorrence of slavery.
As a result of such decisions, a peaceful transition—a
“safe passage”—became possible. Its core logic, in Ms.
Schake’s view, was a mutuality of ideological and
geopolitical interests, a realistic grasp of shifting military
and economic power, and a kind of political crosspollination: The United States, to paraphrase Ms. Schake’s
formulation, became more imperial as Britain became more
democratic. When the two nations faced off briefly in
Venezuela toward the end of the century—a dispute over a
border between Venezuela and British Guiana had led the
U.S. to intervene as arbiter and referee—Britain and
America were already closer to each other than to the
other actors on the scene. This closeness was confirmed by
the Spanish-American War of 1898, when the Royal Navy
supported the United States in a tense confrontation with
the Kaiser’s ships in Manila Bay, where Germany appeared
set to step into the role being vacated by Spain.
From the start of World War I, America provided
financial and industrial defense to the Entente powers and
in 1917 decisively entered the war. During the early stages
of World War II, it acted as the “Arsenal of Democracy”
before joining the war itself. Thereafter, America would
continue to work with Britain in setting and enforcing
global rules, but there was now no doubt as to who was the
senior and who the junior partner.
There was nothing inevitable about the smoothness of
this transition, even in the 20th century, and it shouldn’t be
understood as a linear curve. Tensions arose in the 1920s
over naval armaments, for instance. While Ms. Schake ends
her story in 1945, she alludes to the tensions ahead, too,
especially over the Suez Crisis of 1956, when Washington
precipitated a run on the pound sterling to force Britain to
withdraw from Egypt.
Toward the end of “Safe Passage,” Ms. Schake spells out
the implications of her history for the present day. The
comparison is tricky, because while Britain and the United
States are in many ways “cognate”—culturally, linguistically
and politically—there is no such underlying affinity
between the United States and China. For this reason, Ms.
Schake tends toward pessimism: Just as the U.S. tried to
remake the world in its image and not that of Britain, so
will China try to clone its own values rather than adopt
American ones.
There is, of course, a more optimistic scenario. Emmanuel
Macron, the French president, has recently put forward, and
the German Social Democrats have just endorsed, a plan for
the creation of what will effectively be a European
superstate. If he succeeds, and a robust new Eurozone
threatens to surpass the U.S. economically—a big “if,”
admittedly—then Washington might do worse than to turn
to Ms. Schake’s book on how to manage the transition.
Mr. Simms is the author of “Europe: The Struggle for
Supremacy, From 1453 to the Present.”
.
THE WALL STREET JOURNAL.
A14 | Wednesday, December 27, 2017
OPINION
A
REVIEW & OUTLOOK
LETTERS TO THE EDITOR
Stopping a Student-Loan Scam
Vague Criticism Won’t Help STEM Education
fter nationalizing student lending, the for discharging debt. In June Mrs. DeVos put the
Obama Administration sought to reduce borrower-defense rule on ice and convened a
the government’s $1.3 trillion loan port- committee of stakeholders to consider changes.
folio by allowing disgruntled
The IG in a report this month
Betsy DeVos shuts
borrowers to discharge their
describes systemic problems
debt. Last week Education
with the loan-forgiveness prodown an Obama-era
Secretary Betsy DeVos ended
cess. For instance, claim data
invitation to fraud.
this fraud against taxpayers.
was maintained on more than
After driving Corinthian
a thousand spreadsheets with
Colleges out of business in
“no controls to prevent or de2014, the Education Department implemented tect problems with the integrity.” This is an ina haphazard process to forgive loans of students vitation to hackers.
who claimed to have been ripped off by the deThe Inspector General also found that “infunct for-profit. Tens of thousands of claims formation on the status of loan discharges was
poured in, overwhelming department staff.
not readily available” and that “it took [Federal
The backlog of claims ballooned after preda- Student Aid] at least 3 weeks to produce outtory regulators forced the closure of ITT Tech- come data on the status of claims.” This is
nical Institute in 2016. Liberal groups urged the ironic because the Education Department cut
Obama Administration to forgive loans of bor- off federal student aid to Corinthian—thus prerowers who had attended other for-profits, cipitating its bankruptcy—because of the colspurring the department to initiate a “bor- lege’s alleged slowness in responding to docurower defense” rule-making to allow students ment requests.
who purported misrepresentations by their colMrs. DeVos identified a bigger problem: The
leges to discharge their loans. The midnight department was discharging debt carte blanche
rule, finalized last November, authorized the without accounting for the value students reEducation Department to discharge debts on ceived from their education. Before awarding
a class-wide basis—for instance, all borrowers damages, judges are supposed to consider
who had attended a certain college within the whether plaintiffs are harmed by alleged mislast five years.
representations and then weigh the severity of
The Obama Administration approved their injury. Department adjudicators were doroughly 15,000 claims between June 25, 2015 ing neither.
and January 1, 2017. During President Obama’s
A new department directive scales student
final three weeks in office, the department hur- loan relief based on college employment data.
ried out 16,000 approvals. No claims were de- Borrowers who enrolled in programs whose
nied. The total taxpayer tab for discharges: grads earn less than the average of peer institu$450 million.
tions will receive 100% debt relief. But those
Obama officials left a backlog of 48,000 who attended programs with higher earnings
claims, many of which were flagged for rejec- will only be able to discharge some debt.
tion. But the Education Department had not deEducation officials say this change will save
veloped a process for denying claims or a sys- taxpayers billions of dollars. Yet liberals are
tem to prevent fraud—to wit, borrowers who outraged that Mrs. DeVos is using earnings data
alleged misrepresentations by colleges despite that the department collected to punish forsuffering no apparent injury.
profits to curb dubious claims for debt relief.
Enter the Trump Administration, which sus- The Trump Administration deserves credit for
pended claim approvals while the Inspector restoring due process and protecting taxpayers
General reviewed the department’s procedures from another Obama-era student-loan scam.
Eric Freeman and David Gelernter’s op-ed “What STEM Students
Need to Know” (Dec. 19) hits the
nail on the head. They are right that
the U.S. is about 50 years behind in
our public education system. That’s
about the time when teachers unions
became predominant in public education. Our educational system has
gotten worse ever since. There are
other reasons for our education failure but the NEA is most at fault.
In my opinion, education should
be the top priority in our country.
RICHARD E. LOGAN
Battle Creek, Mich.
Democracy, Putin-Style
Regarding your editorial “Illinois
Drives People Away” (Dec. 13): High
taxes and growing state retirement
debt are repelling people from Illinois. Politicians say more revenue
will help, but high taxes are already
eroding the tax base. What’s driving
the ever-growing cost of government in Illinois? One key problem:
The state gives excessive power to
government unions.
Illinois’s public-union bargaining
rules stack the deck against taxpayers, especially when compared
with neighboring states. Illinois
alone enshrines a “right to strike”
for most government workers in
state law, a bullying tactic through
which government unions can shut
down important services until
their demands are met. And unlike
most of its neighbors, Illinois
doesn’t limit contract length for
most workers’ contracts, and
places virtually no limits on what
can be negotiated.
Where has that led? Decadelong
T
he rules for Russia’s presidential election ing Mr. Navalny’s call for a boycott may also be
this spring may appear opaque and con- illegal, and perhaps that will serve as pretext
fusing to outsiders, but they boil down for another arrest.
to one. Vladimir Putin is runWelcome to democracy,
ning for re-election, and if you The Kremlin fears Alexei Putin-style. In today’s Russia,
are someone whose popularity
opposition candidate is
Navalny is too popular, an
holds the potential to embarconvicted on trumped up
bars his candidacy.
rass him, you’re not going to
charges that are designed to
be allowed on the ballot.
scare him off from politics
That is what is now hapand his anticorruption campening to Alexei Navalny, the Russian lawyer paigns. He decides to run anyway, and then is
who uses a popular blog to expose corruption declared ineligible by virtue of the conviction.
in government and state-owned entities. These Which leaves the Kremlin in the position of
included a March video that went viral accusing threatening Mr. Navalny with more jail time for
Prime Minister Dmitry Medvedev of graft. For boycotting an election the Kremlin has prethe past year, Mr. Navalny has been making trips vented him from entering.
across the country in a grass-roots election bid
Mr. Navalny is a brave man who knows what
for the Russian presidency. As the election he is doing and what he’s risking. But Mr. Punears, Mr. Navalny is proving too popular for tin’s moves against Mr. Navalny and his associMr. Putin’s tastes.
ates aren’t those of a strong and confident man.
On Monday Russia’s top election body barred To the contrary, they are the actions of someMr. Navalny from running for president, invok- one letting his fears get the best of him. In the
ing a politically motivated conviction for em- video statement Mr. Navalny put out after he
bezzlement to declare him ineligible. Mr. Na- was declared ineligible, he had it exactly right:
valny has responded by calling for Russians to “Putin is terribly scared and is afraid of running
boycott the election. So the Kremlin is now say- against me.”
T
Why the Haitians Should Stay
he Trump Administration announced belts, the Haitian migrants have put down roots
last month that it will rescind the visas in the U.S. Returning likely would plunge them
of almost 59,000 Haitians who are le- into poverty. Given that choice they are more
gally documented under the
likely to revert to living in the
These longstanding
Temporary Protected Status
shadows as they did before
(TPS) program. The visas
earthquake. That won’t be
residents are valuable the
were granted after an 8.0
good for tax collections or naassets to the U.S.
earthquake in 2010 demoltional security, which benefits
ished the Caribbean country.
from knowing the U.S. populaThe migrants have until July
tion.
2019 to leave unless they can qualify for anHaitian global remittances amount to some
other visa status.
25% of Haiti’s annual GDP and about half of that
The decision is no surprise given Donald money comes from the U.S., according to the
Trump’s views on immigration, and it’s false ad- World Bank. This is the best kind of foreign aid
vertising to call a program “temporary” and because it doesn’t go through the hands of cornever end it. Yet if the Administration and Con- rupt politicians. It boosts economic stability,
gress are putting America first, they ought to strengthens civil society and reduces the risk
let these productive people stay in the U.S.
of refugee crises.
The TPS program began in 1990 to help unYet retaining the TPS migrants is not about
documented foreign nationals who would face charity. Although the 676,000 Haitians living in
unsafe conditions upon return home due to nat- the U.S. make up less than 2% of the foreign
ural disasters, armed conflict or other extraor- born population, they are important part of the
dinary conditions. It is available for individuals services workforce, especially in tourism and
living in the U.S. before the event occurs. It health care.
doesn’t open the U.S. to a flood of migrants afAs the general manager of the InterContiter a crisis.
nental Miami—where about a dozen Haitians
Honduras, Nicaragua, El Salvador, Syria, So- with TPS visas work—told The Wall Street Jourmalia, Sudan and South Sudan also have TPS nal: “It’s going to be difficult to replace all of
designation. Last month the administration an- those positions in the short term. The labor
nounced that Nicaragua’s TPS protection— force in South Florida is already pretty tight.”
granted in January 1999 after Hurricane Mitch— The U.S. educational investment in thousands
will end in January 2019. It covers migrants who of Haitian children over almost a decade also
have been here almost two decades and number would be lost if families are returned.
around 5,300. TPS for Salvadorans, which began
Sometimes it’s easy to identify the end of a
in March 2001 and has been extended through crisis and halt TPS protection, as with the 2014
March 2018, covers 262,000 migrants. For Ebola outbreak in Liberia, Guinea and Sierra Le58,500 Hondurans protection has been extended one. But more often with recurring catastroto July 2018. Many of these immigrants are phes, national recovery can take years.
likely to stay in the U.S. illegally.
Mr. Trump has discretion over when to end
The Haitian difference is that it’s far from the program for any one country. Alternatively,
clear that the country has recovered from the Congress could alter the 1990 statute so that
earthquake or recurring outbreaks of cholera proven contributors to the U.S. economy would
brought to the country by a U.N. peacekeeping receive special consideration to stay permaunit in 2010. In 2016 Hurricane Matthew (Cate- nently. Both decisions depend on whether these
gory 4) set the country back again.
immigrants are viewed as assets or liabilities
With almost a decade of legality under their for America. We think they’re assets.
Messrs. Freeman and Gelernter
are right about changes being
needed in the U.S. education system,
but many would disagree with
what’s required. You don’t need a
degree in plumbing to work as a
plumber and rent an apartment.
Likewise, knowledge about transistors, conductors and circuit boards
while useful for engineers, won’t really help most computer-science students.
As for inventing social media in
1995, I think Messrs. Freeman and
Gelernter must be joking. Usenet
(the first social network) has been
around since 1980.
ABE KOHEN
New York, N.Y.
other states have already adopted
new engineering standards as part
of their science curriculum. These
standards require students to master
core ideas in science, science and
engineering practices, and crosscutting concepts that support students
thinking more like scientists and engineers.
Messrs. Freeman and Gelernter
could have pointed out that these
standards do not emphasize the
electrical-engineering concepts they
feel are important, but their vague
attack on the current educational
landscape is not productive. We can
forge better partnerships between
education and industry when each
side is aware of the needs and challenges of the other.
MATTHEW D’ALESSIO
Associate Professor, California State
University Northridge
Northridge, Calif.
Messrs. Freeman and Gelernter
claim that computer science builds
on “discrete mathematics” rather
than the continuous type used in
calculus. Yes, discrete math is important, but the branches of computer science generating the most
excitement these days—artificial intelligence, big data and so on—are
mainly applications of the continuous type of math. Even Messrs.
Freeman and Gelernter’s tongue-inThe authors’ op-ed seems well in- cheek probability example would be
tentioned but reveals a lack of unof this type. STEM education may
derstanding of recent educational re- well need improvement, but overforms in both math and science.
simplified and misleading prescripCalifornia is currently drafting com- tions such as those of the authors
puter-science standards that will re- will make the problem worse, not
quire every one of its six million
better.
public-school students to gain some
NORMAN MATLOFF
Professor, U.C. Davis
of the skills for which they advocate.
Davis, Calif.
California and more than a dozen
Illinois’s Tax Burden Is Keeping People Away
contracts are locking taxpayers
into funding expensive deals far
into the future, regardless of the
economic climate. A kitchen-sink
approach to negotiations, with
unions bargaining over everything
from holiday pay to school start
times to time off for birthdays.
With that “right to strike” pressing
taxpayers against a wall, the government unions’ demands are almost always met.
Illinoisans suffer under some of
the highest property taxes in the
nation. The state loses one person
every five minutes on net to other
states. The No. 1 reason is taxes.
Residents won’t stay, and new people won’t come to Illinois if it
doesn’t become more affordable.
One place for Illinois to start is by
following its neighbors’ leads by
reining in government unions’ excessive power.
MAILEE SMITH
Illinois Policy Institute
Springfield, Ill.
Reagan and Trump, Alike in Their Flippancy
Union was the focus of evil in the modern world” and an “evil empire.” Reagan also offered Trump-like flippant
jokes, once publicly saying “we begin
bombing [Russia] in five minutes.”
In late 1983 a nuclear crisis over
new missiles was brewing like the
current one with North Korea. The
Soviets twice mistook sunlight reflected off clouds as U.S. nuclear missile launches. Moscow nearly counterlaunched. Then the Soviets shot down
a Korean Air Lines flight. Tensions
were fever pitched. A month later,
NATO held military exercises that the
Soviets were convinced were preparations for a pre-emptive nuclear first
strike. Only an instinctive pullback by
Reagan’s national security adviser
saved the world from a probable nuclear catastrophe.
The words of the American president matter as much today as in 1983.
In some ways the reckless rhetoric of
Ronald Reagan and Donald Trump are
In his Dec. 16 op-ed “Identity Politics very much alike—but in a dangerous
Began in the American Revolution,” Ja- way.
FRANK RICHTER
son Willick argues that identity politics
Clawson, Mich.
can be reduced if the leading elite in
America prove that they can impartially advance a common good. But
now the “virtuous,” elite leaders that
the founders envisioned are difficult to
find in our overreaching, bloated federal government. The founder’s deTHE WALL STREET JOURNAL
signed a government limited in size
and scope by the Constitution to guard
against corruption.
Our current extra-constitutional
government creates ample opportunity
for corrupt officials to hold onto power
by handing preference and power to
special-interest groups, therefore perpetuating identity politics.
LARRY C. FLOYD
Oklahoma City, Okla.
President Trump’s National Security
Strategy is similar to President Reagan’s argues Judy Shelton in her op-ed
“A New Trumpet for Democracy,” Dec.
21. In one critical way that’s true. Both
presidents Reagan and Trump share a
penchant for uttering (or tweeting) inflammatory words that could provoke
a nuclear crisis.
Most Americans are unaware that
in November 1983 Ronald Reagan’s
record of risky rhetoric nearly resulted in a nuclear exchange. National
security experts have called it the
nearest we’ve come to nuclear war
since the Cuban Missile Crisis. It was
known as the Able-Archer 83 NATO
war games scare.
Leading up to the crisis, Reagan had
provocatively said that “the Soviet
Our Bloated Government
Enables Identity Politics
Pepper ...
And Salt
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.
“We’re all electronic.
No fear of paper cuts here.”
.
THE WALL STREET JOURNAL.
Wednesday, December 27, 2017 | A15
OPINION
In the Mideast, Trump Gives Reality a Chance
A
lot of people are in a funk
over President Trump’s
decision to recognize Jerusalem as Israel’s capital.
The liberal media, most
former government officials who’ve
dealt with the Israeli–Palestinian
imbroglio, and just about everyone
at the United Nations appear certain
that the decision had a lot to do
with Mr. Trump’s disruptive nature,
the president’s son-in-law Jared
Kushner, Evangelical Christians and
pro-Israel Republican donors.
The first step toward peace
is to stop indulging the
Palestinians’ fantasies
of destroying Israel.
It’s possible that his decision was
based instead on an old-fashioned
understanding of the way the world
works, one that would be familiar to
Middle Easterners: There are winners and losers in every conflict,
and Palestinians have decisively lost
in their struggle with the Jews of
the Holy Land. Diplomacy based on
denying reality isn’t helpful.
This view runs smack into the tenets of contemporary conflict resolution, in which diplomacy tries to
make losers feels like winners, so
that unpleasant compromises, at
least in theory, will be easier to
swallow. It alleviates the guilt of a
Westernized people triumphing
over Arabs that has made many in
Europe and even the U.S. uncomfortable with Israeli superiority. It
also runs counter to an assumption
held widely among Western political elites—to wit, quoting the current French ambassador to the U.N.:
“Israel is the key to peace between the Israelis and the Palestinians.” Israelis, in this
view, must make the big compromises.
The truth is surely the opposite. Recognizing the extent
and irreversibility of Palestinian defeat is the first step in
the long process of salvaging
Palestinian society from its
paralyzing morass. Far too
many Palestinians still want to
pretend they haven’t lost, that
the “right of return” and Jerusalem’s unsettled status give
hope that the gradual erosion
of Israel is still possible. Palestinian Authority President
Mahmoud Abbas tapped a common theme among Palestinians
in his recent oration before the
Organization of Islamic Cooperation when he complained that
Jews “are really excellent in A Palestinian answers Trump’s Jerusalem declaration near Ramallah, Dec. 21.
faking and counterfeiting history and religion.”
the West Bank from going the way fundamentalist critique that has unThe biggest problem the Palestin- of the Gaza Strip, where Fatah’s dermined oligarchs across the Arab
ians have is that the Israelis don’t vastly better-armed forces were eas- world. Fearful of playing the imperitrust them, and the Israelis cannot ily overwhelmed by Hamas in 2007. alists and keenly aware of the effibe ignored, sidestepped, bullied, Fatah’s secular police state—and ciency of having a police state as a
bombed or boycotted out of eastern that is what the Palestinian Author- partner, Americans, Europeans and
Jerusalem and the West Bank. Fa- ity is—has proved, so far, no match Israelis have failed to use the levertah, the lead organization of the Pal- for Hamas.
age of financial aid to set standards
estine Liberation Organization and
Western diplomacy has failed for Palestinian governance on the
the muscle behind the Palestinian abysmally to recognize the profound West Bank and in Gaza.
Authority, has often acted publicly split between Palestinian fundamenPalestinian Muslims are no differas if the Israelis weren’t the foreign- talists and secularists and played ent than other Muslim Arabs. Reliers who truly mattered, appealing to wistfully to the hope that a deeply gious militancy has grown astronomEuropeans, Russians and Americans corrupt Fatah oligarchy could con- ically over the past 40 years as the
to intercede on its behalf. Americans clude a permanent peace accord ruling secular elites have calcified
and Europeans have consistently en- with Israel. This delusion’s concomi- into corrupt, hypocritical, heavycouraged this reflex by stressing tant bet: Such a deal would termi- handed autocracies. Westerners have
their own role in resolving the con- nally weaken Hamas, since the secu- not dealt with this well, since it deflict, usually by suggesting that they larists would have finally brought fies the top-down approach inherit
would cajole or push Israelis toward home the mutton.
in diplomacy—and also because funPalestinian positions.
The most important point, how- damentalists terrify them. Yet the
For the Israelis, this has seemed ever, is always ignored. Competent, past ought to tell Americans and Eua surreal stage play. The Fatah lead- transparent, nonviolent Palestinian ropeans that a two-state solution to
ership is well aware that only the governance is the only chance Pales- the Israel–Palestinian clash isn’t goIsraeli security services have kept tinian society has of escaping the ing to happen before Palestinians
reconcile in a functioning democracy that doesn’t scare their
Jewish neighbors. The overwhelming burden here is upon
the Palestinians.
The most valuable American
contribution to the peace process, so far only episodically delivered, is to remind the Palestinians that they first have to
get their own house in order and
the Israelis that they have to
care about how Palestinians
treat their own. Too often, the
Israelis have viewed the Palestinians—and Arab Muslims in
general—as the ineducable
“other,” who is best left to his
own rules so long as Israelis
aren’t killed. Any Israeli effort to
control Palestinian-on-Palestinian abuse will surely be met
with a hail-storm of censure
from the West. But the Israelis
ought to take a longer view. Barrier or no barrier, they are going
to live with the Palestinians forever.
Israel should certainly want to correct its enormous mistake of allowing Yasser Arafat, the father of Palestinian nationalism, to import his
thugocracy into the West Bank and
Gaza.
Most Arabs have adjusted, however reluctantly, to the permanence
of Zion. They did so four decades
ago when Egypt, slowly collapsing
under its own military dictatorship,
checked out of the war. Americans,
Europeans and Israelis—not “the Arabs”—are primarily responsible for
elongating the big Palestinian delusions about the “right of return”
and a sovereign East Jerusalem. It’s
way past time they stopped. Mr.
Trump’s decision, whatever the motivation, is a step forward.
REX FEATURES/ASSOCIATED PRESS
By Reuel Marc Gerecht
Mr. Gerecht is a senior fellow at
the Foundation for Defense of Democracies.
Ta-Nehisi Coates vs. Cornel West Hardly Qualifies as Debate
Remember
that
scene in “The Blues
Brothers” when the
dimwitted siblings,
portrayed by Dan
Aykroyd and John
Belushi, enter a
UPWARD
MOBILITY honky-tonk where
they plan to play a
By Jason L.
show?
Riley
“What kind of
music do you usually have here?” says Mr. Aykroyd.
“Oh, we got both kinds,” replies
a chirpy barkeep. “We got country
and western.”
The exchange came to mind last
week when the best-selling writer
Ta-Nehisi Coates quit Twitter in a
huff after an argument with fellow
black author Cornel West. Both
men are committed liberals, but Mr.
West, the veteran activist and
Marxist academic, thinks that Mr.
Coates’s writings don’t go far
enough. Hard as it may be for some
readers to fathom, Mr. West critiques Mr. Coates from the left.
What so upset Mr. Coates was a
recent op-ed for the British newspaper the Guardian in which Mr.
West praises his younger rival’s use
of books and essays to highlight
“the vicious legacy of white supremacy—past and present” and its
“plundering effects” on black people. But he faults Mr. Coates for not
connecting “this ugly legacy to the
predatory capitalist practices, imperial policies (of war, occupation, detention, assassination) or the black
elite’s refusal to confront poverty,
patriarchy or transphobia.”
Ultimately, Mr. West writes,
“Coates fetishizes white supremacy. He makes it almighty, magical
and unremovable.” Mr. Coates’s focus on white absolution, in Mr.
West’s view, is necessary but insufficient. “The disagreement between
Coates and me is clear: any analysis or vision of our world that
omits the centrality of Wall Street
power, U.S. military policies, and
the complex dynamics of class,
gender, and sexuality in black
America is too narrow and dangerously misleading.”
Mr. Coates’s defenders in academia and the media dismiss these
attacks as little more than jealous
rage. Back in the 1990s, they contend, Mr. West was one of liberalism’s black intellectual darlings,
but his star has since faded (along
with his scholarly output), and
now he’s lashing out in frustration
at a younger generation of black
thinkers.
But Glenn Loury, a black economist at Brown University and a longtime critic of both men—“People get
mad at you for saying the obvious
thing,” he once said of Mr. Coates,
“but the brother is not that deep”—
They both think racism
explains disparities today,
and they seldom engage
with those who disagree.
rejects this amateur psychoanalysis.
In a recent Bloggingheads.tv discussion with another black academic,
Columbia University linguist John
McWhorter, Mr. Loury said that invidious speculation about motives is
not only unwarranted but also damaging to civil discourse. Better to
“give West the benefit of the doubt”
and “meet his arguments” with
counterarguments.
Mr. Loury’s approach is clearly
the right one, but it’s also true
that the details of the Coates-West
dust-up are less important than
the parameters in which such discussions tend to take place. When
liberals call for more honest conversations about race in the U.S.,
what they have in mind are discussions very narrowly focused on
certain premises that fellow liberals have accepted and don’t want
questioned.
There is no daylight, for example,
between Mr. Coates and Mr. West
on whether racial discrimination explains economic and social disparities today. They agree that blackwhite gaps in, say, academic
achievement, employment, incarceration and homeownership are
mostly the product of who’s in
charge of teaching, hiring, policing
and money lending. Seldom do they
and their fellow travelers on the
left express any interest in engaging
people who challenge such notions,
regardless of how much empirical
evidence and logic those challengers
might bring. In short, trying to discuss racial issues on terms that liberals find acceptable is akin to attempting to discuss music with that
“Blues Brothers” barkeep. Only it’s
not as funny.
In his exchange with Mr. Loury,
Mr. McWhorter noted that black intellectuals didn’t always focus on
white victimization to the extent
they do today. In the early 1900s,
leading black thinkers of all political stripes, from W.E.B. DuBois and
Booker T. Washington on down,
spoke regularly and with great
pride about what blacks had accomplished despite slavery, Reconstruction and Supreme Court rulings
that countenanced segregation. In
the 1960s that perspective lost currency among black elites, but Mr.
McWhorter argued that a more responsible course of action for black
leaders today would be to try to revive that earlier mind-set.
Mr. McWhorter said that “there’s
an intellectual case to be made, not
to mention a moral one, for getting
back to the idea that yes, the past
sucked; yes, the past was not all
that long ago, but our only job as
self-directed human beings in the
only world we’re ever going to live
in . . . is to make the best of what
we’ve got.”
That advice is as sound as it is
unlikely to make an impression on
anyone who gives a hoot about a
spat between Ta-Nehisi Coates and
Cornel West.
America’s Dairies Need Free Trade—Including a Better Nafta
By Andrei Mikhalevsky
And Stan Ryan
N
egotiators working to modernize the North American
Free Trade Agreement will
meet in Montreal next month for
another round of talks, but stark
differences remain. As leaders of
two of the largest dairy cooperatives in the Western U.S., we have
some suggestions.
First, American negotiators
should work hard to preserve the
duty-free access to Mexico that
U.S. agricultural products currently enjoy. Second, they should
fight to gain meaningful access to
Canada’s dairy market, which was
excluded from Nafta when the
agreement was first negotiated.
The U.S. produces more cow’s
milk than any other country, 24.6 billion gallons in 2016. American dairy
companies employ nearly a million
people, generating direct wages of
$39 billion and an overall economic
footprint of more than $206 billion,
according to the International Dairy
Foods Association.
Mexico is America’s single largest
export dairy market, with $1.2 billion in sales last year, according to
the U.S. Department of Agriculture.
The U.S. Dairy Export Council estimates that the U.S. provides close to
75% of Mexico’s dairy products,
which supports nearly 30,000 Amer-
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ican jobs. Free trade is working well
for both sides.
Dairy exports to Canada, on the
other hand, face extremely high
tariffs. Moreover, in February Canada implemented a state-controlled
pricing policy that pays Canadian
dairy farmers more than 50% more
for their milk, which drives dairy
prices higher in Canada than in the
U.S. Simultaneously, Canada undermines global markets for dairy proteins by exporting skim-milk powder far below the global price.
Nafta negotiations present an opportunity to stop these unfair practices, and we applaud the Trump
administration’s commitment to
this. Most of Canadian agriculture
Notable & Quotable
The abstract of a paper in the
scholarly journal Research in Education, Oct. 19, 2016:
The idea that the world is composed of moving and constantly transforming materialities that are vibrant,
quivering, and indeterminate has
shifted how we think about human
and non-human relations. Matter is
not a stable entity, but one that is continuously vibrating and differentiating. . . . In this paper, I turn to the materiality of rhythm, movement, and
affect to suggest a more vital understanding of participation and thus politics. . . . Rather than thinking of participation as democratic decisionmaking, can we imagine participation
as an intrinsic mode of being where
taking part is not something to opt
into or out of, but a vital lived relation.
has already embraced free trade
with great success.
But fixing Nafta isn’t enough to
keep the American dairy industry
globally competitive. The most significant opportunity for dairy farmers and product manufacturers is to
Negotiators should insist
on meaningful access
to Canada’s market—and
work aggressively on Asia.
expand international markets, but as
the U.S. focuses on Nafta, other
countries are aggressively forging
new trade deals. These arrangements, especially in the Asia-Pacific
region, are providing America’s
competitors with preferential access
to a growing middle class. The
Japan-EU Economic Partnership
Agreement, finalized earlier this
month, is a perfect example.
Europe is one of America’s primary dairy competitors. Now it is
using its free-trade agreements to
enshrine nontariff standards such
as prohibitions on the use of generic food terms such as “parmesan” or “romano.” These standards
block competitors from entering
those markets. The EU has completed other free-trade deals with
Canada and Vietnam, and it is negotiating with Malaysia, the Philippines and Thailand.
Meanwhile, Australia and New
Zealand are quickly expanding their
global reach, announcing that they
will launch free-trade negotiations
with the Pacific Alliance of Chile,
Colombia, Mexico and Peru. The
agreement among the remaining
nations in the Trans-Pacific Partnership to move forward without
the U.S. is only the latest in a growing string of setbacks.
America’s absence has essentially
converted slow and overly cautious
countries into the most urgent deal
makers of modern times. In contrast to the Trump administration’s
sentiments, expressed during its recent Asia trip, the U.S. ought to reengage proactively—and do so
quickly. How can America stand
alone and watch the rest of the
world systematically reduce its
competitive trade access?
As leaders in American food and
agriculture, we ask for no subsidies
or special protections—only a fair
and level playing field. This country
has the most sustainable and competitive agricultural system in the
world, an enduring and natural advantage. Given America’s ability to
provide high-quality products and
meet the growing demand for dairy,
entering into fair and balanced
trade agreements is a win for everyone.
Capable U.S. trade negotiators
are working hard on Nafta, as they
should be. But we urge the Trump
administration to pursue trade
agreements aggressively in Asia
and beyond that will restore a
level playing field for U.S. dairy
and agriculture.
Mr. Mikhalevsky is president and
CEO of California Dairies Inc. Mr.
Ryan is president and CEO of Darigold Inc.
.
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A16 | Wednesday, December 27, 2017
For some this isn’t a paper, it’s a
blanket
The greatest incentive to give isn’t always a tax deduction.
Sometimes, it’s simply human need.
Please, continue to help The Salvation Army fight for the homeless,
the hurting, and the hopeless today– and always. Donate now.
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Uber Trades In Its Car-Lease Unit
Sale of subprime line
to a startup ends
effort to attract
drivers without cars
BY GREG BENSINGER
Uber Technologies Inc. has
agreed to sell its U.S. subprime auto-leasing business to
startup
car
marketplace
Fair.com, people familiar with
the matter said, bringing to an
end the ride-hailing giant’s
failed attempt to attract new
drivers who lack regular access to vehicles.
Uber has been seeking a
buyer for Xchange Leasing, as
the unit is known, since this
summer, when it decided to
wind down the business after
learning it was losing roughly
$9,000 a car, 18 times more
than previously believed. In
September, the company said
it would begin to close
Xchange Leasing, affecting
about 500 jobs, while also
launching a sale process.
It couldn’t be learned what
price Fair agreed to pay for
the division. An Xchange Leasing document compiled for
prospective buyers and reviewed by The Wall Street
Journal said the net book
value of its more than 30,000
vehicles was roughly $400
million.
Uber has been working to
curtail costs after posting
$2.52 billion in combined
losses over the past two
quarters, despite rising revenue and ride bookings. Under
new CEO Dara Khosrowshahi,
it is weighing an initial public offering in 2019 and is
working to revamp after a
year of scandals and legal
setbacks.
Uber also has sold a stake
in a separate car-leasing operation in Singapore, and
merged its Russia operations
into a joint venture with local
rival Yandex Taxi.
Fair, founded last year and
based in Santa Monica, Calif.,
matches customers with cars
based on what they commit to
pay a month, purchases the
vehicles from area dealers and
effectively rents them to the
customer who can then return
autos at any time. It has raised
about $85 million in equity
funding as well as around $1
billion in debt.
As part of the deal, expected to close early next year,
Uber will offer potential drivers in the U.S. access to Fair
on its app, an exclusive arrangement, and will take an
equity stake in the company,
according to one of the people.
Fair will offer jobs to some 150
employees of Xchange Leasing,
the person said.
That arrangement could
help Uber maintain a healthy
supply of drivers, crucial to
meeting customers’ expectations for low wait times and
inexpensive fares.
Uber launched Xchange
Leasing in 2015, hoping to attract drivers who couldn’t otherwise afford a car because of
insufficient or poor credit histories. A priority for former
Chief Executive Travis Kalanick, the program offered flexible terms and allowed drivers
to bring cars back with short
notice. Payments were deducted from their earnings
while driving for Uber. The
company has said Xchange
Leasing was never meant to be
profitable.
Even with lease rates of as
much as $500 a month, the division was losing thousands
on each vehicle, people familPlease see UBER page B2
Korea’s LG Display Gets Green Light to Export Technology to China
See more at WSJMarkets.com
Tax Law
Not So Big
On Jumbo
Mortgages
BY CHRISTINA REXRODE
The jumbo-mortgage market has been a bright spot for
the banking industry in recent
years. The tax law could take
some of the shine off it.
The tax-code overhaul,
among its many other consequences, eliminates some of
the benefits of homeownership, particularly for high-end
homes. And the borrowers
who buy those homes are exactly whom banks have been
targeting.
“The
banks
really
like jumbo mortgages,” said
Guy Cecala, publisher of the
trade publication Inside
Mortgage Finance. “It’s a
business they’ve become increasingly reliant on.” Last
year, jumbo mortgages hit
their highest level since 2006
by dollar volume, according
to the publication’s estimates.
Predicting the tax law’s exact effect on the jumbo market
is difficult, and most banks
aren’t talking yet about what
they expect. Complicating
matters: Wealthy consumers
could benefit from other parts
ALEX WONG/GETTY IMAGES
The overhaul could
make wealthy buyers
reconsider buying a
second or third home.
SHOW TIME: Attendees of a consumer-electronics show in Las Vegas this year viewed an exhibit for LG TVs that incorporate organic light-emitting diode technology.
Seoul has given the Korean company permission to produce OLED displays in China, the first transfer of the sophisticated technology outside the country. B4
Stores Are Getting Built, Just Not in Malls
BY ESTHER FUNG
Despite a glut in U.S. retail
space, some developers are
building more, just not in the
form of malls but alongside
new homes in smaller chunks
than before.
The target clientele: younger and even some older
Americans who are looking for
cheaper housing in the suburbs but favor areas with urban trappings such as restaurants, offices and shops.
These projects, often joint
ventures between a housing
developer and a developer
with retail expertise, are
sprouting up around the U.S.,
especially in Florida, Massa-
chusetts and Arizona. The focus is on a design that is pedestrian-centric,
where
residents would have to walk
only short distances to get to
the grocery store, shops or the
gym.
“The single biggest change
is walkability,” said Steve Patterson, chief executive of Miami-based developer Related
Development LLC. Proximity
to schools, transportation and
shops is important even for
suburban projects, he said, as
the love for cars dissipates a
bit. Early this year, Related
Development opened a mixeduse project in Doral, Fla., that
included 250,000 square feet
of retail space and 700 resi-
dences.
In Fort Worth, Texas, residents at the RiverVue Apartments, a new 375-multifamilyunit rental complex, need only
a minute to walk to a Whole
Foods in the next building.
Other shops and restaurants
such as REI, Sur La Table, Piattello Italian Kitchen and
Taco Diner are also within
walking distance.
“The resident comes home,
relaxes a bit and then goes to
a store half a block away without having to get back in the
car,” said Mark Culwell, managing director at Transwestern Development Co., the developer and operator of the
residential complex. “That re-
tail space has a higher probability of surviving if there’s
that element.”
RiverVue, which began leasing earlier this year, is 70%leased and 60%-occupied.
“While we targeted 25-35year-old professionals, there
were also a number of baby
boomers who sold their homes
to move here to try a different
lifestyle,” Mr. Culwell said.
Some retail property owners are constructing residential units or offices in or next
to their enclosed malls or
open-air shopping centers, or
in some cases on top of streetfronting retail stores. Along
with additions such as medical
offices and hotels, a built-in
HEARD ON THE STREET | By Elizabeth Winkler
This May Be as Good as It Gets for Retail
It is almost a Christmas
miracle.
Retailers have taken a
beating in the past year, with
falling stocks and gloomy
predictions of their impending death.
Yet in the weeks leading up
to Christmas, retail stocks rallied. On the day after Christmas, the real miracle occurred:
Kohl’s was up 6% and Macy’s
and J.C. Penney shares were
both up around 5%
Encouraged by rising
wages and low unemployment, consumers spent more
liberally this holiday season.
The National Retail Federation forecast retail sales, excluding automobiles and restaurants, would reach
between $678 billion and
$682 billion, up from $655
billion last year. Analysts now
expect final holiday sales
Sluggish Sales
J.C. Penney net sales over the
past five quarters
$4 billion
3
2
1
0
Q3'16 Q4'16 Q1'17 Q2'17 Q3'17
Note: Fiscal year ends Feb. 1.
Source: FactSet
THE WALL STREET JOURNAL.
numbers will hit the higher
bound of that forecast.
It helped that retailers
learned from the mistakes of
past years. Many entered the
season with tighter inventory,
reducing the need for steep
discounts, and improved ecommerce capabilities, propping up sales in their battle
against Amazon.com.
But investors should be
wary of growing too optimistic. “Retail was priced for
death and we found out it was
just really sick,” says Simeon
Siegel, a retail analyst at Nomura Securities. “It would be
foolish to think the structural
challenges e-commerce brings
have disappeared.”
Amazon appears to have
trounced most rivals, as
usual. The company says
over 4 million people started
Prime free trials or began
paid memberships in just one
week. Amazon Devices also
had their “best holiday yet,”
according to the company.
But for the month of December, Amazon shares
lagged behind Kohl’s, Macy’s
and J.C. Penney’s, and the
gap widened the day after
Christmas when Amazon
stock was up slightly.
Amid the euphoria, a look
at the department stores’
still deteriorating fundamentals is sobering. Sales at J.C.
Penney have fallen four of
the past five quarters and analyst estimates for the current quarter have dropped by
nearly one-third since the
quarter began. Same-store
sales at Macy’s have fallen
for 11 straight quarters. And
Kohl’s is trading at 15 times
forward earnings, up from
just below 11 in November,
according to FactSet.
Frenzied holiday shoppers
appear to be more disciplined
than some investors today.
Strong holiday season lifts
shares of retailers................ B10
shopper base helps support
foot traffic to the stores and
restaurants. Office workers
and out-of-town hotel guests
might also find it convenient
to have food and entertainment options nearby.
Federal Realty Investment
Trust, a shopping center REIT
known for building and operating mixed-use projects in the
first ring of suburbs around
urban cores in Maryland, California and Massachusetts, said
it takes years to build expertise in developing such projects.
Fundamental decisions include where to place car parking and office space in relation
Please see STORES page B6
of the new tax law. Also,
the jumbo market has already
slowed down this year, as
higher interest rates have
crimped refinancing activity.
Still, some analysts say the
tax changes could further slow
the pace of jumbo mortgages,
though for now they expect
only a modest single-digit percentage drop from the law.
Since the financial crisis,
banks have been pushing hard
on jumbo mortgages, or loans
that are too big to be sold to
Fannie Mae and Freddie Mac.
In most parts of the country,
a jumbo is any loan above
$424,100. Banks generally
keep the loans on their own
books, as wealthy borrowers
who use the products are less
likely to default.
There are two main ways
the tax law could hinder some
of that activity. It slashes the
size of loans that qualify for
the mortgage-interest deduction from $1 million to
$750,000. It also curbs the
amount of property taxes
homeowners can deduct from
their tax bill. Mr. Cecala said
this cap could make wealthy
buyers reconsider buying a
second or third home, since
the property-tax deduction is
one of the major benefits of
doing so.
In “states like New York,
New Jersey, California—that’s
Please see JUMBO page B2
INSIDE
AIRLINES BAND TOGETHER
FOR BETTER DEAL ON PLANES
TRANSPORTATION, B2
.
B2 | Wednesday, December 27, 2017
INDEX TO BUSINESSES
M
Express......................B10
B
Bank of America.........B2
Barclays.....................B11
Barnes & Noble .......... A5
Beach Point Capital
Management.............B2
Best Buy ..................... B3
Bisignano, Frank.......B11
BlackRock....................A7
BMW...........................A2
Boeing ......................... B2
BOE Technology Group
.....................................B4
Broadcom .................. B11
C
Cadence Design...........B3
CBRE Group...........B5,B6
Coinbase......................B4
Corning........................A2
Cushman & WakefieldB6
CVS Health................B11
D-E
Dick's Sporting Goods
...................................B10
DowDuPont.................A1
eBay ............................ A5
Elliott Management . B11
F-G
Fair.com.......................B1
Federal Realty
Investment Trust ..... B1
FedEx...........................B3
First Republic Bank....B2
Foot Locker ............... B10
Ford Motor..................B4
Gap.......................B3,B10
General Motors...........B4
Goldman Sachs Group
...................................B11
Guardian Life Insurance
Company of AmericaB5
H
Harbinger Capital
Partners....................B2
HNA Group..................B2
Hulu...........................A11
Humana.....................B11
I
Iberia ...........................B2
Icahn Enterprises........B2
Indigo Partners...........B2
Ineos..........................B10
Innovate Auto Finance
.....................................B2
International
Consolidated Airlines
Group.........................B2
J-L
J.C. Penney.....B1,B3,B10
Jetstart.......................B2
JPMorgan Chase.........B2
Kindred Healthcare...B11
Kohl's.......B1,B3,B10,B11
Kroger..........................B3
LG Display...................B4
LightSquared...............B2
Lion Air ....................... B2
Lloyds Banking Group
...................................B11
Luxor Capital Group....B2
Macy's .......... B1,B10,B11
Mallinckrodt................B3
Mednax......................B11
Mitsubishi UFJ Financial
Group.......................B10
N-O
Narvar..........................B3
Nordstrom.................B10
Norwegian Air Shuttle
.....................................B2
Optoro ......................... B3
P-S
PPG Industries......A1,A2
Related Development.B1
Royal Bank of Scotland
Group.......................B11
Skyworks Solutions..B11
Sucampo
Pharmaceuticals.......B3
T-U
Target...................B3,B10
Temasek Holdings .... B10
Tesla............................B4
Thermo Fisher Scientific
.....................................A8
TH Real Estate...........B5
3M...............................A1
Transwestern
Development.............B1
TruAmerica Multifamily
.....................................B5
Tupperware Brands.....B3
Uber Technologies ...... B1
V-Y
Volaris Aviation Holding
.....................................B2
Vueling Airlines..........B2
Walgreens Boots
Alliance.....................B3
Wal-Mart Stores.B3,B10
Wells Fargo.................B2
YETI Holdings.............B3
INDEX TO PEOPLE
A-B
I-L
S
Aida, Takuji.................A6
Bassuk, David.............B3
Bem, David ................. A2
Berkes, Jeff.................B6
Boyadjis, Mark............A2
Bradley, Neil................B3
Brady, Kevin................B3
Iger, Bob......................A9
Kleinbard, Edward ...... B3
Krebs, Michelle...........B4
Lee, Charlie.................B4
Schmidt, Andrew........B3
Serra, Davide ............ B11
Sharenow, Greg........B10
Sharma, Amit ............. B3
Siegel, Simeon............B1
Smith, Matthew.......B10
Stone, Randy..............A1
Stringfellow, Tom.....B11
Subramaniam, Rajesh B3
C-F
Culwell, Mark..............B1
Evenson, Jeff..............A2
Falcone, Philip.............B2
G-H
Graboske, Ben.............B2
Greenwood, Revathi...B6
Haddad, James ........... B3
M
Martha, James............B5
Moore, Tobin...............B3
Morton, Donald.........B10
Musk, Elon..................B4
P-R
Patterson, Steve.........B1
Polcari, Kenny...........B11
Polk, Andrew .............. A6
Rice, Jeanette.............B5
Roffler, Michael..........B2
JUMBO
Continued from the prior page
a big deal,” said KBW analyst
Christopher McGratty. Current
mortgages will get to keep the
$1 million cap on mortgage-interest deductibility, but that
could also slow sales by persuading some high-end homeowners not to move.
The banks’ increasing production of jumbo mortgages
has been notable since they
have pulled back on other
types of mortgages, tightening
lending standards and making
way for nonbank lenders to
take on riskier customers.
The mortgageinterest deduction
has been a staple of
homeownership.
Wells Fargo & Co., JPMorgan
Chase & Co. and Bank of
America Corp. are the three
biggest jumbo mortgage producers.
At banks with $10 billion or
more in assets, which includes
all midsize and large banks,
19% of all mortgage originations were over the typical jumbo limit in 2016, up
from 9% in 2006, according to
an analysis using software
from ComplianceTech’s LendingPatterns.com.
For the biggest banks,
the jumbo setback won’t offset
the expected savings from a
lower corporate tax rate over
all. But a few lenders like First
Republic Bank that focus
heavily on jumbo mortgages
may face a more meaningful
impact.
Over the last three months,
T
Terrazas, Aaron .......... A2
Thulin, Inge.................A2
U
Ueno, Yasunari ........... A6
as the tax bill came into shape,
First Republic shares declined
about 14%, compared with
about an 11% pickup in the
KBW Nasdaq Bank index.
“I don’t think we view it as
[a change] that totally stops
the business and drives things
to a halt,” said the bank’s chief
financial officer, Michael Roffler, at a conference in early
November. The bank declined
to comment.
High-cost mortgages dominate the housing market in areas like New York City and
California. In Manhattan, for
example, 84% of purchase
mortgages this year were for
more than $500,000, according to housing-research firm
Attom Data Solutions. In San
Francisco, where First Republic is based, the portion is 87%.
The mortgage-interest deduction has long been a staple
of American homeownership,
and the psychological effect of
losing part of it can have just
as much an effect as the financial. Already, many borrowers
are staying put longer in their
current homes, partly because
they don’t want to lose the superlow interest rates they pay
now that the Federal Reserve
is raising short-term rates.
“We’re already living in a
rate-lock world,” said Ben Graboske, an executive vice president at mortgage data and
technology firm Black Knight
Inc. “Now you’re going to add
this.”
Black Knight calculates that
the new interest-deductibility
cap would cost a homeowner
with a mortgage over
$750,000 an average of $2,500
to $4,000 a year depending on
their tax bracket. That would
equal a 6% increase in monthly
principal and interest payments for moving to a new
home.
—Rachel Louise Ensign
contributed to this article.
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BY DOUG CAMERON
AND ROBERT WALL
Airlines are getting smarter
at buying aircraft.
Eager to boost returns on
investment, airline executives
are looking for ways to lower
their biggest capital cost. One
strategy gaining traction:
working together to buy jets in
bulk.
Last month, four airlines
linked to a U.S. private-equity
firm struck the largest-ever
group deal. The parent of British Airways and aviation companies tied to Chinese conglomerate HNA Group have
tried similar tactics to secure
bigger discounts from plane
makers.
The strategy is adding to
pressure on Airbus SE and
Boeing Co. to trim their own
costs so they can afford to cut
customers a better deal. Airlines “are doing a better job at
negotiating,” John Leahy, Airbus’s longtime chief salesman,
said in an interview. “That is
frustrating to any supplier.”
Aircraft sale prices vary
considerably, much like tickets
sold for the same flight. Carriers buying large numbers of
single-aisle planes can secure
discounts of more than 60%
off Boeing’s and Airbus’s advertised list prices, Moody’s
Investors Service estimates.
Indigo Partners LLC, a U.S.
private-equity group and longtime airline investor, leveraged
the needs of the four carriers
in its portfolio to secure better
terms from Airbus. Chief Executive Bill Franke said in November at the Dubai Airshow
that Indigo would buy 435 Airbus jets for Denver-based
Frontier Airlines, Hungary’s
Wizz Air, Mexico City-based
Volaris and Chile’s Jetstart.
The planned purchase is worth
$60 billion before discounts.
Mr. Franke gathered executives from the four airlines
over the summer to explore a
joint purchase at a time when
Airbus and Boeing had backlogs stretching out six or
seven years. Placing a big order would move them up the
queue and secure a better
price, as long as the carriers
A Wizz Air Airbus flying along the Danube River during an air show in Budapest last year.
could agree to order nearly
identical planes.
Wizz Air Chief Executive
Jozsef Varadi said the airlines—all Airbus operators—
were prepared to buy from
Boeing if Airbus didn’t give
them the price they wanted.
“At the end of the day it is a
commodity in a commodity
business. You have to be
driven by cost,” he said.
The deal’s price tag wasn’t
disclosed, standard practice in
the industry. In exchange for
the discounts, Airbus gets increased production certainty
to 2026. That, Mr. Leahy said,
helps lower production costs.
“Those airlines got a good deal
but so did Airbus,” he said.
The Indigo-led deal is by far
the largest group transaction,
eclipsing a 90-plane order that
three Latin American carriers
placed with Airbus in 1998.
Other efforts have foundered
as airline executives squabbled
about features such as engines, seats or in-flight entertainment systems.
Agreement on common
specifications is critical to
pursuing bulk deals. International Consolidated Airlines
Group SA has standardized
the cabins of its single-aisle
planes, allowing it to transfer
Not as Advertised
New jetliners typically sell at
significant discounts to their list
price.
List price
Market value
Boeing 737-800
Boeing 737-900ER
Boeing 737 Max 8
Airbus A320
Airbus A321
Airbus A321neo
$0 million
$100
Source: Moody's Investors Service
THE WALL STREET JOURNAL.
them between units including
British Airways, Ireland’s Aer
Lingus and its two Spanish affiliates, Iberia and Vueling. As
a result, IAG is able to secure
better terms from Airbus by
buying a single version of the
A320 jetliner.
“That’s a huge advantage
because it gives us a lot of
bargaining power,” IAG Chief
Financial Officer Enrique Dupuy said at an investor event
last month.
The benefits of scale are evident in deals involving newer
low-cost airlines including Indonesia’s Lion Air, Malaysia’s
AirAsia Bhd. and Norwegian
Air Shuttle ASA, which have
each placed orders for hundreds of jets in recent years.
Many analysts doubt they will
take all of those aircraft, at
least on the original schedule,
but all three have also created
leasing arms to rent out surplus jets.
Leasing companies own
around 40% of the global jet
fleet, giving airlines more flexibility to match supply and demand. Some leasing executives
question whether all carriers
have the skills to negotiate
huge purchases.
AerCap Holdings NV Chief
Executive Gus Kelly said that
while making a big aircraft
purchase may be a career
highlight for an airline CEO,
members of his staff face Airbus and Boeing negotiators every week.
“You’re signing a deal at
the air show. Fantastic!” Mr.
Kelly said. “But you ought to
remember, you’ve got to live
with that 25 years afterward.
You have to be so careful by
putting pen to paper with the
manufacturers.”
Harbinger Sues Apollo Over Losses
BY ANDREW SCURRIA
tious plans to build a nationwide retail data network with
40,000 towers using spectrum
that was originally set aside
for orbiting satellites.
Rather than selling cellphone service directly to consumers, the company planned
to offer its network to other
wireless carriers in the hopes
of someday providing low-cost
mobile services to millions of
Americans. But the Federal
Communications Commission
thwarted those plans in 2012
after the global-positioningsystem industry complained
about possible interference
with existing GPS equipment.
LightSquared filed for bankruptcy and emerged from chapter 11 after 3½ years of wrangling with creditors. Mr.
Falcone, a well-known figure on
Wall Street, maintained a partial equity stake although he
lost his say in LightSquared’s
day-to-day operations.
Mr. Falcone accepted a fiveyear ban from the securities
industry under a 2013 settlement with the U.S. Securities
and Exchange Commission in
which he admitted to mistreating his investors.
Centerbridge Partners LP,
Fortress Investment Group
LLC and JPMorgan Chase &
Philip Falcone’s hedge fund
said it was defrauded by
Apollo Global Management
LLC into pouring $2 billion
into the ill-fated wireless venture formerly known as LightSquared Inc.
Mr. Falcone’s Harbinger
Capital Partners filed a lawsuit
in New York state court Thursday accusing Apollo of concealing flaws in a planned telecommunications network that ran
into regulatory roadblocks years
later, driving LightSquared into
a costly bankruptcy.
In the lawsuit, Harbinger
claimed to have found evidence
from U.S. patent archives showing that Apollo’s directors
“knew, or were reckless in not
knowing” about a set of 2001
test results casting doubt on the
wireless network technology.
“We believe the suit lacks
merit, and we intend to defend
ourselves vigorously,” an
Apollo spokesman said.
The lawsuit revolves around
a wireless network proposal
developed by SkyTerra Communications Inc., a Reston, Va.
company that Harbinger acquired from Apollo and
merged into LightSquared in
2010. The startup had ambi-
Co. also took partial ownership of LightSquared in the
bankruptcy. The restructured
company swiftly de-escalated
its conflict with the GPS industry, dropping lawsuits
against GPS equipment makers
in a bid to convince regulators
that a scaled-down version of
its technology could coexist
with theirs.
Philip Falcone’s
hedge fund
says it was
defrauded into
pouring $2
billion into
LightSquared.
The
settlements
with
Garmin Ltd., Deere & Co. and
Trimble Navigation Ltd. laid
down parameters on the use of
spectrum for ground-based
wireless broadband services.
LightSquared agreed to forgo a
portion of its spectrum nearest
to GPS signals and instead to
use other frequencies that minimized the risk of interference.
Harbinger said in its lawsuit
that it was confused by those
settlements. The lawsuits had
sought $4 billion in damages
but in the end yielded no set-
tlement payments from the GPS
makers for the benefit of LightSquared creditors. The restructured company negotiated the
settlements without Harbinger’s input or the approval of
the bankruptcy court.
During an investigation into
those deals, Harbinger said it
found archived patent records
suggesting that SkyTerra’s
Apollo-appointed
directors
knew as early as 2001 how the
planned terrestrial network
could “overload” GPS receivers.
“The company discovered
that this overload issue would
effectively cripple receivers
used by GPS and would be fatal
to the millions of GPS devices
already in use, many of which
are critical to the national infrastructure,” the lawsuit said.
Apollo didn’t disclose those
problems to the FCC or in
public securities filings, hoping to unload its investment in
SkyTerra to another investor,
according to the complaint.
Harbinger bought SkyTerra
debt and equity starting in
2004, culminating in the 2010
buyout, the lawsuit said.
LightSquared changed its
name last year to Ligado Networks LLC while it seeks approval for a scaled-back network.
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Continued from the prior page
iar with the matter told the
Journal earlier this year. The
fees pushed many drivers to
work longer hours and return
the vehicles in poor shape,
damaging their resale value,
these people said.
Other firms that considered
bids for Xchange Leasing, according to the document, were
rental firm Avis Budget Group
Inc., Icahn Enterprises LP, investment firm Beach Point
Capital Management LP, and
Luxor Capital Group LP along
with loan servicer Innovate
Auto Finance, of which Luxor
is a part owner.
Representatives for Innovate, Luxor, Beach Point and
Avis declined to comment.
Icahn Enterprises didn’t return calls seeking comment.
JOHN GASTALDO/SAN DIEGO UNION-TRIBUNE/ZUMA PRESS
A
BUSINESS & FINANCE
LASZLO BALOGH/REUTERS
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.
Abercrombie & Fitch.B10
AerCap Holdings.........B2
Aetna.........................B11
AirAsia ........................ B2
Airbnb..........................B5
Airbus..........................B2
Albertsons Companies
.....................................B3
Allstate ....................... B5
Amazon.com
.................. A5,B1,B3,B10
Apollo Global
Management.............B2
Apple.........................B11
Aptose Biosciences .. B11
Avis Budget Group.....B2
THE WALL STREET JOURNAL.
* ***
Some independent contractors use Uber cars from Xchange Leasing, which will be sold to Fair.com.
.
THE WALL STREET JOURNAL.
Wednesday, December 27, 2017 | B3
BUSINESS NEWS
Retailers Aim for Happier Returns Opioid
Maker
To win them over,
consumers are being
offered more ways
to return merchandise
Diversifies
With Deal
After a strong holiday shopping season, retailers are bracing for a flood of returns—and
not just at the customer-service counter.
This year traditional and
online retailers have expanded
the means by which consumers
can return merchandise, from
in-store kiosks and lockers to
the mall concierge, drop-offs
at grocery stores, parcel-shipping locations and at-home
pickup.
“A lot more retailers are offering all the convenient options this year,” said Amit
Sharma, chief executive of
Narvar, a technology firm that
helps retailers including Gap
Inc., Sephora and Yeti Holdings Inc. with shipping and
tracking purchases and returns.
Online retailer Amazon.com
Inc. said it has expanded options for in-person returns this
year, with a network of 2,000
“locker” locations, including
400 at its Whole Foods stores,
where customers can drop off
items to be returned. Amazon
also partnered with Kohl’s
Corp. stores in Chicago and
Los Angeles, which are accepting returns of Amazon goods
bought online.
Wal-Mart Stores Inc. is
touting its Mobile Express Returns kiosks, located in its
stores, where it says customers can complete the return
process in less than five minutes and receive a refund
within a day or so. They can
also print a shipping label online and drop off merchandise
at a designated shipping location.
BY CARA LOMBARDO
DANIEL ACKER/BLOOMBERG NEWS
BY ERICA E. PHILLIPS
A wall of Amazon delivery lockers in a Whole Foods store in Chicago. Retailers are providing more drop-off spots for returned items.
Target Corp. offers similar
in-store and drop-off options,
and like Wal-Mart doesn’t
charge for returns. Kohl’s and
J.C. Penney Co. Inc. have comparable policies, but don’t
cover the cost of return shipping.
As shoppers increasingly
turned to the internet for their
holiday purchases this year,
they were more likely to patronize e-commerce shops
with speedy delivery and easy
returns, analysts say. Online
holiday sales are expected to
top $107 billion this year, an
increase of 13.8% from 2016,
according to Adobe.
Returns have become a
“battleground” among online
retailers trying to attract and
retain customers, said Tobin
Moore, chief executive of Optoro Inc., a logistics provider
that helps companies like Target and Best Buy Co. process
and resell returned merchandise.
Mr. Moore estimates that
goods purchased online are
three times more likely to be
returned as goods bought in a
physical store. In total for this
season, he said roughly $90
billion in holiday merchandise
will be returned over the next
few weeks, with more than
one-third of it coming back before the new year.
With higher volumes of
merchandise coming back
through a wider variety of
channels, analysts say handling the reverse supply chain
can get costly.
“Those returns require extra manual work,” said David
Bassuk, a retail consultant
with AlixPartners LLP. Every
item that comes back has to be
checked for damage.
One of the ways retailers
lower those costs is to encourage shoppers to return items
directly to a store. Items returned to the store cost a retailer roughly $3 to process
and are available for resale
within a day, according to AlixPartners. Items shipped back
to a distribution center or
third-party logistics provider
cost $6 or more to process and
take at least four days before
they are available for resale.
Retailers see another benefit to in-store returns: customers sometimes make additional
purchases after bringing back
unwanted gifts.
For shoppers who choose to
ship goods back, parcel carriers have readied their networks for the holiday season’s
aftermath. FedEx Corp. told
investors in a conference call
last week that it has 10,000 locations—including Walgreens
Boots Alliance Inc. stores,
grocers Kroger Co. and
Albertsons Cos. and its own
FedEx Office storefronts—
where customers can drop off
items for returns. Rajesh Subramaniam, FedEx’s chief marketing officer, said that “the
business of returns continues
to grow in scale and complexity, especially for retailers.”
——Laura Stevens
contributed to this article
Corporate Taxes Now Lower but Not Simpler
The tax legislation signed
into law last week offers much
for U.S. companies to be happy
about, including a sharply
lower corporate tax rate.
One thing American business isn’t getting: a simpler
tax code.
As a candidate and then as
president, Donald Trump
joined congressional Republicans in promising to overhaul
the tax code for individuals
and business, in part by simplifying it.
“America’s tax code is a total dysfunctional mess,” Mr.
Trump told an audience in St.
Charles, Mo., on Nov. 29. “The
current system has cost our
nation millions of American
jobs, trillions and trillions of
dollars, and billions of hours
wasted on paperwork and
compliance.”
Much of the promise for
simplicity centered on individuals. But corporations were
supposed to get a break from
red tape, too.
“What I hope comes out of
this is simplicity,” E.V. “Rick”
Goings, chief executive of Tupperware Brands Corp., said in
an interview.
Although Tupperware operates at a loss in the U.S. and
doesn’t expect the bill to affect its tax costs directly, Mr.
Goings expressed hope he
would be able to reduce the
time and personnel devoted to
preparing corporate taxes.
“We have a whole wing of our
headquarters that’s a tax department,” he said.
That isn’t likely, according
to tax attorneys, accounting
experts and corporate-finance
executives.
“Policy makers tried to
oversell simplicity,” said Neil
Bradley, the U.S. Chamber of
Commerce’s chief policy officer. “You’re never going to
have something truly simple,
particularly when you’re dealing with international businesses with highly mobile income.”
In one example, where companies have been able to deduct their full interest payments each year, they now
face a new limit amounting to
30% of a measure of pretax income—but how that limit is
calculated changes after four
years.
A spokeswoman for Rep.
Kevin Brady, the Texas Republican who headed the congressional committee merging the
BRENDAN SMIALOWSKI/GETTY IMAGES
BY THEO FRANCIS
House Speaker Paul Ryan speaking last week after passage of the tax overhaul legislation.
House and Senate bills, said
the law reduces complexity by
simplifying small-business accounting rules, temporarily
letting companies expense
capital spending all at once
rather than over several years,
and eliminating special-interest provisions in favor of a
Foreign Assets Will
Worsen Headaches
Most of the new
complexity in the tax overhaul
is on the international front,
said Edward Kleinbard, a law
professor at the University of
Southern California. For purely
domestic companies, the tax
code may not get much more
complicated, but it isn’t likely
to be any simpler, either.
“On the domestic side, it’s a
push,” Mr. Kleinbard said. “On
the international side, it’s
hideously complex in ways that
are different from the
complexity of the current
system.”
A particularly thorny
change tax executives must
grapple with soon is the effect
of the one-time tax on
accumulated foreign profits.
Public companies reporting
earnings starting in midJanuary will be expected to
detail the law’s cost, with or
without detailed guidance from
tax authorities.
The Securities and Exchange
lower corporate rate.
The legislation also eliminates some complications that
companies have complained
about for years, including the
corporate version of the alternative minimum tax.
But the law creates a new
provision—called the baseCommission said companies
should try their best to
determine the new law’s
impact, while also making clear
what uncertainties remain.
For big companies, the cost
of tax code complexity isn’t in
the calculations, since they can
hire programmers to solve
that. Rather, it is a matter of
how difficult it becomes to
project the tax impact of
operational decisions.
That could be bad news for
accomplishing some of the
legislation’s goals, such as
breaks to encourage moving
patents and intellectual
property to the U.S., or cutting
the headline U.S. rate for
companies.
“If you want to change
behavior, companies need to
know how a change in their
inputs will change their tax
outputs,” the tax director of a
large multinational company
said.
“When you have these
multiple overlapping tax
frameworks like this, it
becomes incredibly difficult for
companies to figure out what
their incentives are.”
erosion and anti-abuse tax, or
BEAT—that does much the
same thing for many multinationals. It is likely to require a
second tax calculation for
many firms making payments
to foreign affiliates, meaning
most multinationals.
Another new provision,
dubbed the global intangible
low-tax interest tax, or GILTI,
is designed to impose a minimum levy on income from patents or other intangible assets
in countries that charge very
low tax rates.
“Just the fact that you’re
adding two acronyms should
tell you everything,” said Andrew Schmidt, a North Carolina State University accounting professor who specializes
in taxes.
Many of the changes in the
law, including the 21% corporate tax rate, take effect on
Jan. 1, further complicating
matters for publicly traded
companies operating on a calendar year.
“If your year-end is truly
calendar, and your earnings
call is three to four weeks
later, you’re going through
400, 500 pages of documentation,” James Haddad, vice
president of corporate finance
at
semiconductor-services
firm Cadence Design Systems
Inc., told investors this month.
“The IRS is going to have to
come out with regulations that
interpret the intent of Congress. We won’t see that for
quite a while.”
—Sharon Terlep
contributed to this article.
Mallinckrodt PLC has
agreed to buy Sucampo Pharmaceuticals Inc. for about
$840 million, as the U.K-based
drug giant looks to diversify its
portfolio after regulatory scrutiny hurt its opioid sales.
The companies said Tuesday
that a Mallinckrodt subsidiary
would buy Maryland-based Sucampo for $18 a share, a 5.9%
premium over Friday’s closing
price. Including Sucampo’s
debt, they said the deal has a
transaction value of about $1.2
billion.
With the deal, Mallinckrodt
would add to its roster Amitiza, a drug to treat constipation-related disorders that had
estimated sales last year of
about $480 million, according
to the companies.
Sucampo shares Amitiza
revenue and costs through several collaboration agreements,
including one in North America
with Takeda Pharmaceutical
Company Ltd. Last year, Amitiza contributed around $119
million of Sucampo’s $230 million in revenue.
The acquisition could also
Mallinckrodt’s
takeover of Sucampo
could strengthen its
rare-disease pipeline.
bolster Mallinckrodt’s rare-disease pipeline with two developmental treatments designated
as “orphan drugs,” which receive special FDA status due to
their limited potential markets.
One of the Sucampo drugs
addresses a hereditary, neurodegenerative disease while the
other targets a genetic condition involving potentially malignant polyps. The treatments
are projected to have combined
peak annual sales of $450 million, according to a presentation Mallinckrodt provided to
investors.
Mallinckrodt’s stock, which
rose less than 1% on Tuesday,
has dropped more than 50%
this year, leaving it about 83%
below its all-time high hit in
2015. Sales of its opioid products slumped badly after the
federal government began
probing various drugmakers’
roles in the country’s opioid
epidemic. The company disclosed over the summer it received a subpoena from the
U.S. Justice Department for
documents “related to the marketing and sale of the company’s opioid products.”
The company was also hurt
after the cost-effectiveness of
its best-selling branded drug,
which treats infantile spasms,
was questioned in major medical journals.
On a November earnings
call, Mallinckrodt warned that
volumes of the drug, Acthar,
could decline in the fourth
quarter, though the company
said it is confident sales will
grow in the long term. Acthar’s
sales were $308.7 million in the
most recent quarter.
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account requirements. Offer applies to personal accounts only.
© 2017 Synchrony Bank
.
THE WALL STREET JOURNAL.
B4 | Wednesday, December 27, 2017
TECHNOLOGY
WSJ.com/Tech
Elon Musk Hints
At Tesla Pickup
To Challenge Ford
JOHN LOCHER/ASSOCIATED PRESS
BY TIM HIGGINS
An LG exhibit at the Las Vegas consumer-electronics show in January. The Korean company is a major producer of display panels.
Seoul Allows Tech Transfer
LG Display gets nod
from trade ministry
to establish OLED
production in China
BY KWANWOO JUN
AND EUN-YOUNG JEONG
SEOUL—South Korea gave
one of its largest companies
the go-ahead to build an organic light-emitting diode, or
OLED, production facility in
China, in what would be the
first-ever transfer of the sophisticated display technology
outside the country.
The trade ministry approval
for LG Display Co. is the latest
sign that relations between
the two nearby nations are improving after a summit be-
tween their leaders to restore
economic links—and coordinate policy on North Korea—
earlier this month. South Korea this year deployed a U.S.made missile defense battery,
triggering a diplomatic dispute that hampered regional
efforts to respond to Pyongyang.
LG Display is one of the
world’s biggest makers of display panels used in smartphones and televisions, and
Tuesday’s approval could help
cement its commanding market position for large OLED
panels. The company has said
it plans to invest 5 trillion
South Korean won, or $4.7 billion, in China by 2020—onequarter of its OLED investment over the next three years
—citing cheaper costs. It aims
to begin its OLED production
in China in 2019.
LG has said it plans to boost
its OLED production to some
2.8 million units next year, up
1.1 million from 2016. In July it
announced plans to start producing the panels in the Chinese city of Guangzhou, adding
to existing production there of
less advanced displays.
South Korea’s Ministry of
Trade, Industry and Energy on
Tuesday advised LG to increase security measures to
protect the technology. South
Korea’s government has restricted export of some of its
valuable industrial technology,
including OLED, to help local
industries maintain a competitive edge.
Under South Korean law,
companies are required to
seek government approval to
export such technologies.
China’s BOE Technology
Group Co. has spent at least
$17.7 billion to ramp up its
OLED production in recent
years. Though its production
quality lags behind that of its
more sophisticated South Korea competitors, IHS Markit
estimates the Chinese company will become the world’s
largest display manufacturer
by volume by 2019.
While Tuesday’s decision
will likely help LG maintain its
lead in the large-model OLED
market, it should also enable
the company to expand its capacity to make smaller
screens, a market that has
grown in recent years as more
smartphone makers adopt the
technology for its displays.
Elon Musk teased details
for a pickup truck that would
challenge Ford Motor Co. and
others in one of their most lucrative
segments—though,
true to form, the Tesla Inc.
chief was vague about his intentions.
In comments posted Tuesday on Twitter, Mr. Musk said
the truck would come after the
electric-car maker releases a
new compact sport-utility vehicle, which the billionaire entrepreneur has suggested could
hit the road as soon as 2019.
Mr. Musk, responding to a
question on the social-media
platform about how the
truck’s size would compare
with Ford’s best-selling F-Series, said his pickup would be
similar if not slightly bigger
“to account for a really
gamechanging (I think) feature
I’d like to add.”
A pickup would allow Tesla
to enter a market that has
long fueled traditional U.S.
auto makers’ bottom lines. Analysts estimate the average
pickup earns more than
$10,000 in profit for Ford and
General Motors Co.
The vague statement to his
17.1 million Twitter followers
was a classic Musk move:
stoking enthusiasm for future
products laid out in his socalled “Master Plan, Part
Deux” even as he struggles to
bring his latest vehicle to
market.
Tesla is rushing to ramp up
production of the Model 3 sedan after delaying Mr. Musk’s
goal of making 5,000 a week
by year’s end until late in the
first quarter of next year.
The Silicon Valley company
has attributed delays to battery-pack assembly at its factory near Reno, Nev. The Wall
Street Journal in October reported an assembly plant in
Fremont, Calif., wasn’t ready
when production began in
July.
“Seems like Tesla is biting
off a lot and should focus to
master the Model 3 first,” Michelle Krebs, an analyst for
Autotrader, said Tuesday.
Mr. Musk had said the arrival of the Model 3, which
starts at $35,000, would lift
the company’s overall vehicle
production to 500,000 next
year from about 84,000 last
year, a goal he since has shied
from. Similarly, he has said
the Model Y SUV could reach
500,000 to 1 million vehicles a
year. “It’s the obvious priority
after Model 3,” he told analysts in August 2016.
“I promise that we will
make a pickup truck right after Model Y,” Mr. Musk said in
the conversation on Twitter.
“Have had the core design/engineering elements in my
mind for almost 5 years. Am
dying to build it.”
In April, Mr. Musk said on
Twitter the new pickup would
be unveiled in 18 to 24
months. Then in September, as
he prepared to reveal a commercial semitrailer truck for
2019, he coyly responded to a
question on Twitter about
whether the pickup would be
next by asking: “What if we
just made a mini version of
the Tesla Semi?”
—Mike Colias contributed
to this article.
Bitcoin Spawns a Multitude of Crypto Cousins
BY PAUL VIGNA
Bitcoin’s wild ride has
gotten a huge amount of attention. But over the past
two weeks, some of its
crypto cousins, like litecoin
and Bitcoin Cash, have muscled their way into the spotlight.
On Dec. 19, for instance,
bitcoin-services company
Coinbase said it would list
and support Bitcoin Cash,
which is an alternative version of bitcoin that launched
Aug. 1. The news sent prices
of bitcoin down and Bitcoin
Cash skyrocketing.
Plenty of people are confused enough about bitcoin.
Alternatives to bitcoin, or
“altcoins,” muddy the waters
further. Here are answers to
some basic questions about
them.
What are altcoins?
Altcoin is a nickname
given to currencies that are
a variation on bitcoin. The
way bitcoin itself was created encourages this. When
bitcoin’s anonymous creator
released bitcoin in 2009, he
or she did it as an opensource software project. That
means that, unlike the code
for Microsoft Windows, people could take the program,
reconfigure it and launch
their own version. Litecoin
was the first to do this, in
2011.
Are there many of these
altcoins?
Yes. A research website
called coinmarketcap.com recently listed 1,374 altcoins.
Most are marginal at best.
About 300 of them, with
names like PinkDog, MagicCoin and BitSoar, have no
measurable market. But
there are a handful that have
a legitimate shot at becoming viable online currencies.
Which ones seem viable?
Ethereum, also known as
ether, is probably the most
popular. As of Friday, it had
a $60 billion market value,
second only to bitcoin, and
has attracted a sizable community of developers and entrepreneurs. Ripple and litecoin are also popular. And
Bitcoin Cash grew far bigger
last week; it rose 60% in one
MICHAEL SHORT/BLOOMBERG NEWS
Meet Bitcoin Cash, Litecoin and the other ‘altcoins’ muscling in on original’s turf and learn why they matter to you
Coinbase offices in San Francisco. The company recently said it would support Bitcoin Cash.
day, and its market value
stood at about $40 billion,
after Coinbase said it would
list the coin.
How do these other coins
compare in size and performance to bitcoin?
All of them are smaller
than bitcoin. Some have
larger circulating supplies—
there are 38 billion ripple tokens, for example—and some
have had larger gains this
year on a percentage basis.
Ethereum is up 7,600% this
year, and ripple has risen
about 15,000%. Bitcoin is up
about 1,200%.
Who created these other
currencies?
Some have known creators, and some don’t. Charlie Lee created litecoin. Vitalik Buterin created
Ethereum. In the case of Bitcoin Cash, it was a group of
developers and businesses
that weren’t satisfied with
the existing configuration of
bitcoin.
How is Bitcoin Cash Different from bitcoin?
In most respects, it is similar to bitcoin. It works the
same way, and it has the exact same transaction history
as the original bitcoin, up to
Aug. 1, 2017.
Its primary difference is
that it is designed to allow
more transactions to pass
through, on a per second basis, than bitcoin, which leads
to lower user fees. And, of
course, because it is a differ-
Micro Trends,
Macro Context.
In Minutes.
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ent market, Bitcoin Cash’s
price moves independent of
bitcoin itself.
Do we need another version of bitcoin?
Cryptocurrency is the
epitome of an open market.
Anybody can come along and
offer a product.
Bitcoin’s backers created
this opening for Bitcoin Cash
by not allowing any changes
in the underlying code that
would have allowed more
transactions to fit through
the network.
They have their reasons
for that. But as bitcoin has
grown in popularity, the result has been a situation
where transactions get stuck
in a bottleneck. If you want
to get your transaction processed fast, you need to attach a voluntary fee.
Those “voluntary” fees
have reached an average cost
of about $30 per transaction.
That makes bitcoin virtually
unusable for all but very
large transactions. The Bitcoin Cash crowd is just trying to offer a solution to that
problem.
.
THE WALL STREET JOURNAL.
Wednesday, December 27, 2017 | B5
THE PROPERTY REPORT
Suburbs Lure Big Investors
Apartment buildings
near cities outperform
luxury high-rise sector
as urban rents decline
Now that the urban luxuryapartment boom is winding
down, some big investors are
fanning out to the suburbs.
As institutional investors
such as pension funds and insurance companies hunt for higher
yields, they have been scouring
the older and less glamorous
suburban rental buildings that
ring metropolitan central business districts, real-estate executives and analysts said.
Part of the reason: Swelling
supplies of new luxury apartments in urban areas are driving rents lower for high-end city
apartments.
“About two years ago was
the inflection point where we
began to see the impact of having a lot of new product in the
urban areas, and we also began
to see the beginning of some
softness,” said Jeanette Rice,
Americas head of multifamily
research at CBRE Group Inc.
“We also saw vacancy rates inch
up, so institutional capital is always thinking, ‘Where are the
better returns?’ ”
Garden apartments, usually
clusters of low-rise buildings
typically in the suburbs with
middle-class rents, have outperformed the high-rise sector in
the past year, according to a report from TH Real Estate, an
affiliate of Nuveen, the investment-management arm of TIAA.
Returns for garden-style apartments averaged 8% for the four
quarters ended in June, compared with 5.1% for high-rise
apartments, the report said.
Other factors driving the appeal of the older suburban
apartment sector, typically
called Class B, include high oc-
TRUAMERICA MULTIFAMILY
BY KEIKO MORRIS
TruAmerica sold a 400-unit townhouse community in Renton, Wash.
Luxury Boom Fizzles
National apartment
vacancy rate by class
8%
Class A
Class B
Class C
7
6
5
4
3
Quarterly
2012 ’13
’14
’15
’16
’17
Sources: Marcus & Millichap Research
Services; MPF Research
THE WALL STREET JOURNAL.
cupancy rates and a high and
constant demand from the population renting out of necessity.
In the third quarter, the vacancy rate for upper-tier apartments in the so-called Class A
category was 5.8%, while the
rate for Class B apartments
was 4.3%, according to Marcus
& Millichap Research Services
and MPF Research. The suburban rental market targeting
middle-income residents also
is bolstered by a homeownership rate that has remained
well below the 69% recorded at
the height of the housing bubble a decade ago.
With apartment development still tough in suburban
municipalities, the supply of
new apartments that eventually
could fall into the Class B category in metropolitan areas has
been limited.
While local and regional private companies still dominate
the suburban Class B apartment
sector, some bigger investors
are joining with established operators to buy older apartment
buildings and renovate them, so
they can raise rents while still
keeping them significantly
lower than levels commanded
by the upper end of the market.
Some institutional investors
such as TH Real Estate have
long had funds targeting this
type of apartment-rental category, which has had a steady
performance in areas surrounding prime cities such as Los Angeles, New York and Boston, as
well as markets such as Minneapolis, Nashville and Austin,
Texas, said James Martha, a
managing director and head of
TH Real Estate’s U.S. multifamily division.
“Their demand just stays
constant, and rent growth is
predictable,” Mr. Martha said.
“You don’t have big highs, and
the downside is limited.”
Robert Hart, whose career in
the sector spans more than 30
years, formed a joint venture
called TruAmerica Multifamily
with Guardian Life Insurance
Co. of America in 2013, targeting older rental-apartment
properties surrounding central
business districts. The joint
venture now manages a $7 billion portfolio of about 33,000
units across the U.S., making
purchases with pension funds,
other insurance companies and
family offices. Insurance company Allstate Corp., through its
real-estate equity group, was
one of TruAmerica’s early investment partners.
TruAmerica’s strategy is to
buy large apartment complexes
15 years old or older that need
renovation and are within a 15to-20-mile radius of major central business districts. The company makes upgrades to the
individual units—in some cases
spending as much as $10,000
each—and adds or improves
amenities including fitness centers and clubhouses, allowing
for higher rents that still attract
a population segment renting
out of necessity.
The appeal of the strategy
has been the ability to raise income from rents, creating a
“durable cash flow” and the appreciation in the property’s
value, Mr. Hart said. Last year,
TruAmerica was able to sell a
complex in Renton, Wash., with
about 400 apartments for about
$98 million—$36 million more
than the company paid for the
property about three years ago,
according to public documents.
PLOTS & PLOYS
INDUSTRIAL PROPERTY
TWIN CITIES
Prices Rose in 2017
On Strong Demand
Homeowners Cash In
On the Super Bowl
Prices for industrial land shot
up this year due to strong demand for warehouses and a diminishing supply of viable sites,
according to real-estate services
firm CBRE Group Inc.
Prices for some urban
sites that are from 5 to 10 acres
for warehouses under 200,000
square feet rose to more than
$250,000 an acre. That is up
from about $200,000 a year
ago and about $150,000 in 2013,
CBRE said.
Larger urban sites between
50 and 100 acres for warehouses that exceed 1 million
square feet exceeded $100,000,
compared with roughly $50,000
a year earlier. Values in the industrial sector have outpaced all
other sectors this year as the
growth in e-commerce has
fueled demand for spaces near
densely populated areas.
—Esther Fung
Airbnb listings in the Twin
Cities area are soaring in advance of next year’s Super Bowl
despite new regulations that
Minneapolis and St. Paul adopted requiring new compliance
procedures for hosts of Airbnb
and similar services.
The world’s largest online
home sharing service said in a
statement that it has 2,650 “active hosts” in the Twin Cities, up
from 1,000 in February.
“It is increasingly realistic
that the Airbnb host community
will end up tripling to 3,000” by
Feb. 4, game day for Super Bowl
LII at U.S. Bank Stadium, the
statement said.
This fall, Minneapolis and St.
Paul joined other cities throughout the world in passing rules
regulating home sharing. New
regulations include licensing fees
and building inspections.
—Peter Grant
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B6 | Wednesday, December 27, 2017
NY
THE WALL STREET JOURNAL.
* *
THE PROPERTY REPORT
Worries Mount Over Office Glut
Moody’s flags increase
in new construction
even as it predicts a
weakening in demand
Moody’s Investors Service has joined the growing
chorus of voices raising concern about a possible glut of
new office space that could
hurt some market participants.
In a new report, Moody’s
notes that new office construction increased markedly
about three years ago, averaging around a 1% increase in inventory per year. And through
2018, the credit-ratings firm
expects the annual growth rate
of U.S. office space to roughly
double that of the past three
years.
At the same time, Moody’s
expects the growth in demand
for office space to weaken. In
2018, the annual growth rate
of office-using employment
will be about half of what it
was this year, Moody’s predicts.
The upshot: higher office
vacancy. “As supply exceeds
demand, the overall office vacancy rate will likely climb
more than 1.5 percentage
points over the next three
years from the current cyclical
low of about 13%,” the report
stated.
Of course, higher vacancy
can be good news for tenants
looking for space or renewing
leases. It often means lower
rents and increased landlord
concessions like interior work
and months of free occupancy.
But Moody’s tends to look
MICHAEL BUCHER/THE WALL STREET JOURNAL
BY EMILY NONKO
Moody’s expects the overall office vacancy rate to climb in coming years. A New York building site.
at commercial real estate
through the lens of creditors,
particularly investors who
purchase commercial mortgages that are packaged into
rated debt securities. Like
other credit-rating firms,
Moody’s analyzes these securities to assess their chances of
defaulting, a risk that increases as vacancy rises in the
property backing the mortgages.
Moody’s Investors Service,
a unit of Moody’s Corp., also
lately has been concerned that
underwriter standards have
been softening, particularly
when it comes to putting a
value on the commercial property backing the commercial
mortgage-backed securities.
Lenders in the commercial
mortgage-backed securities
market currently are under-
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
Fund
Data provided by
Top 250 mutual-funds listings based on total net assets for Nasdaq-published share
classes. NAV is net asset value. Percentage performance figures are total returns,
assuming reinvestment of all distributions and after subtracting annual expenses.
Figures don’t reflect sales charges (“loads”) or redemption fees. NET CHG is change
in NAV from previous trading day. YTD%RET is year-to-date return. f-Previous day’s
quotation. p-Distribution costs apply, 12b-1. r-Redemption charge may apply. tFootnotes p and r apply. NA-Not available due to incomplete price, performance or
cost data. NE-Not released by Lipper; data under review. NN-Fund not tracked. NSFund didn’t exist at start of period.
Fund
Tuesday, December 26, 2017
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Career Opportunities
To advertise: 800-366-3975 or WSJ.com/classifieds
CAREERS
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10.35 -0.01
40.39 -0.05
23.28
...
42.99 -0.06
44.63 -0.22
66.42 -0.03
55.65 +0.07
12.99 +0.02
45.66 -0.01
29.7
23.3
26.2
6.4
19.7
12.9
28.4
34.4
31.6
26.5
5.1
20.2
BlackRock Funds Inst
22.78
...
EqtyDivd
19.80 +0.01
GlblAlloc
...
StratIncOpptyIns 9.95
Bridge Builder Trust
NA
...
CoreBond
Dimensional Fds
...
5GlbFxdInc 10.86
EmgMktVa 30.74 +0.08
EmMktCorEq 22.79 -0.01
...
IntlCoreEq 14.43
20.39 +0.01
IntlVal
Baird Funds
20.99 -0.01
IntSmCo
NA
... NA IntSmVa
22.65 -0.02
AggBdInst
CorBdInst 11.18 -0.02 4.3 US CoreEq1 22.85 -0.01
BlackRock Funds A
US CoreEq2 21.64 -0.01
36.14 +0.02
GlblAlloc p 19.69 +0.01 13.3 US Small
ADVERTISEMENT
CAREERS
writing many office buildings
at values that surpass those of
the pre-financial-crisis peak.
“We’re looking at a cyclical
shift in how underwriting is
being done on the loans we
see coming through,” said
Kevin Fagan, a vice president
with Moody’s. “Typical of the
late stage of a cycle, we see
some pretty aggressive underwriting with high expectations
of future rent growth, and
very low vacancy assumptions.”
Banks and other lenders
sold a record $250 billion of
commercial mortgage backed
securities in 2007, according
to a report by Morningstar
Credit Ratings. Following the
2008 crash, the default rate
soared, partly because of lax
lending standards in the years
just before the crash.
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10.66 +0.01
10.63 +0.01
First Eagle Funds
58.95 +0.09
GlbA
FPA Funds
34.69 -0.02
FPACres
FrankTemp/Frank Adv
...
IncomeAdv 2.36
FrankTemp/Franklin A
7.45 +0.01
CA TF A p
2.38
...
IncomeA p
RisDv A p 61.21 +0.04
FrankTemp/Franklin C
...
Income C t 2.41
FrankTemp/Temp A
GlBond A p 11.95 -0.01
Growth A p 27.24 -0.01
FrankTemp/Temp Adv
GlBondAdv p 11.90 -0.01
Harbor Funds
CapApInst 69.60 -0.24
67.47 -0.01
IntlInst r
Harding Loevner
NA
...
IntlEq
Invesco Funds A
10.99
...
EqIncA
John Hancock Class 1
NA
...
LSBalncd
NA
...
LSGwth
John Hancock Instl
DispValMCI 23.33 -0.01
JPMorgan Funds
NA
...
MdCpVal L
JPMorgan R Class
NA
...
CoreBond
Lazard Instl
EmgMktEq 19.70 +0.01
Loomis Sayles Fds
13.72 +0.01
LSBondI
Lord Abbett A
...
ShtDurIncmA p 4.25
Lord Abbett F
...
ShtDurIncm 4.25
Metropolitan West
10.63 +0.01
TotRetBd
TotRetBdI 10.63 +0.01
TRBdPlan 10.00 +0.01
MFS Funds Class I
40.79 -0.05
ValueI
MFS Funds Instl
25.27 -0.01
IntlEq
Mutual Series
29.3 GlbDiscA
31.81 -0.02
20.1 Oakmark Funds Invest
3.8 EqtyInc r
32.22
...
84.65 -0.11
Oakmark
13.3 OakmrkInt 28.36
...
Old Westbury Fds
10.4 LrgCpStr
14.43
...
Oppenheimer Y
8.6 DevMktY
42.24 -0.04
43.45 -0.04
IntGrowY
5.5 Parnassus Fds
8.4 ParnEqFd
42.94 -0.09
20.4 PIMCO Fds Instl
NA
...
AllAsset
8.2 TotRt
10.22
...
PIMCO Funds A
2.9 IncomeFd
12.38
...
17.7 PIMCO Funds D
12.38
...
IncomeFd
3.1 PIMCO Funds Instl
12.38
...
IncomeFd
36.9 PIMCO Funds P
22.8 IncomeP
12.38
...
Price Funds
NA BlChip
96.51 -0.22
28.26
...
CapApp
11.2 EqInc
33.42
...
71.87 -0.08
EqIndex
NA Growth
62.77 -0.19
NA HelSci
70.41 +0.03
37.00 -0.09
InstlCapG
15.7 IntlStk
18.54 -0.03
15.02 -0.01
IntlValEq
NA MCapGro
87.18 -0.09
30.47 +0.09
MCapVal
NA N Horiz
52.65 -0.04
9.46
...
N Inc
26.0 OverS SF r 11.27 -0.01
22.50 -0.01
R2020
7.2 R2025
17.56 -0.01
25.87 -0.02
R2030
2.2 R2035
18.94 -0.02
27.19 -0.03
R2040
2.6 Value
37.36 -0.04
PRIMECAP Odyssey Fds
2.8 AggGrowth r 44.48 -0.02
3.1 Growth r
37.42 -0.07
3.1 Principal Investors
DivIntlInst 14.06 -0.02
17.8 Prudential Cl Z & I
14.51 +0.02
TRBdZ
27.1 Schwab Funds
S&P Sel
41.28 -0.04
‘The resident comes
home, relaxes...and
then goes to a store
half a block away.’
foot project it acquired in
1997. To expand on the existing rental homes, condos, office space, shops and a boutique hotel, Federal Realty is
building another office building with ground floor retail
that will be ready around
early 2019.
Alex Lagemann, who moved
into a one-bedroom apartment
at Santana Row a year ago,
said the luxury of walking to
work—his office in the same
mixed-use project—is a big
draw despite the hefty rent.
“You can work deep into
the night without thinking
you have this looming drive
ahead of you,” said the 28year-old.
Net YTD
NAV Chg %Ret Fund
9.6 TIAA/CREF Funds
19.70 -0.01
EqIdxInst
14.6 IntlEqIdxInst 20.08
...
21.6 Tweedy Browne Fds
28.8 GblValue
28.75 +0.01
VANGUARD ADMIRAL
19.1 500Adml 247.38 -0.25
34.71
...
BalAdml
32.9 CAITAdml
11.74 +0.02
26.4 CapOpAdml r154.15 -0.39
37.65 -0.02
EMAdmr
16.7 EqIncAdml 77.88 -0.01
ExplrAdml 88.62 +0.08
NA ExtndAdml 84.97 +0.06
4.6 GNMAAdml 10.44
...
GrwthAdml 72.53 -0.11
7.8 HlthCareAdml r 86.61 +0.20
...
HYCorAdml r 5.91
7.9 InfProAd
25.42 +0.02
IntlGrAdml 95.25 -0.18
8.3 ITBondAdml 11.32 +0.01
ITIGradeAdml 9.72 +0.01
8.2 LTGradeAdml 10.52 +0.02
MidCpAdml 191.86 +0.27
36.8 MorgAdml 90.86 -0.19
15.3 MuHYAdml 11.40 +0.02
16.5 MuIntAdml 14.08 +0.02
21.8 MuLTAdml 11.62 +0.02
33.9 MuLtdAdml 10.88 +0.01
28.1 MuShtAdml 15.71
...
38.2 PrmcpAdml r134.20 -0.26
27.3 REITAdml r 116.58 +0.64
20.0 SmCapAdml 70.95 +0.10
25.1 STBondAdml 10.37
...
11.9 STIGradeAdml 10.62
...
31.7 TotBdAdml 10.72 +0.01
3.6 TotIntBdIdxAdm 21.70 +0.02
26.6 TotIntlAdmIdx r 30.24
...
15.5 TotStAdml 66.87 -0.04
17.5 TxMIn r
14.30
...
19.2 ValAdml
41.49 -0.02
20.7 WdsrllAdml 67.24 -0.05
21.8 WellsIAdml 65.06 +0.04
19.1 WelltnAdml 72.47 -0.03
WndsrAdml 79.12 -0.08
34.1 VANGUARD FDS
32.6 DivdGro
26.53 +0.03
HlthCare r 205.37 +0.46
27.8 INSTTRF2020 22.93 +0.01
INSTTRF2025 23.26
...
6.1 INSTTRF2030 23.51
...
...
INSTTRF2035 23.77
22.1 INSTTRF2040 24.02 -0.01
Largest 100 exchange-traded funds, latest session
ETF
Tuesday, December 26, 2017
Closing Chg YTD
Symbol Price (%) (%)
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
AMLP
XLY
XLP
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
10.86
0.18 –13.8
99.20
0.22
57.00
0.23
10.2
72.60
0.88
–3.6
27.97
–0.29
20.3
101.19
0.12
16.8
82.93
0.02
20.3
75.48
0.11
21.3
109.00
0.07
0.7
104.48
–0.02
–0.4
121.85
0.01
–0.5
21.9
SAVE $170
on 15 Great Wines
Phelps County Regional Medical
Center in Rolla , MO is looking for a
General Cardiologist.
Send CV to Beth Hedrick
ehedrick@pcrmc.com
Professor of Finance
Endicott College is accepting applications for the
School of Business at the Beverly, MA campus.
Must have extensive work exp in finance - e.g. inv
banking, private equity, consulting, asset mgmt,
etc - in a client facing position. College level
teaching exp desirable. Masters in Finance, MBA
with a concentration in Finance, CFA or preferably
a PhD in Economics or Finance. Please send CV to:
humanresources@endicott.edu
Net YTD
NAV Chg %Ret Fund
Continued from page B1
to retail—for instance, you
want fewer cars to interrupt
the walk to the shopping area.
In addition, there are mundane operational items to consider such as where trash is
dropped off and when to operate leaf blowers.
“It’s not something you decide on a Friday and execute
on a Monday,” said Jeff
Berkes, who heads West Coast
operations for Federal Realty.
“It’s not always easy and it’s
not always perfect.”
In San Jose, Calif., the realestate investment trust is still
working on Santana Row, a
popular 1.7 million-square-
Net YTD
NAV Chg %Ret
INSTTRF2045 24.20
...
39.69 +0.01
20.13 +0.02
34.00
...
LifeGro
27.45 +0.01
LifeMod
27.00 -0.04
PrmcpCor
31.39 +0.04
SelValu r
27.78 -0.01
STAR
10.62
...
STIGrade
TgtRe2015 16.14 +0.01
TgtRe2020 32.16 +0.01
TgtRe2025 18.91 +0.01
TgtRe2030 34.24 +0.01
...
TgtRe2035 21.08
...
TgtRe2040 36.39
TgtRe2045 22.88 -0.01
TgtRe2050 36.81 -0.01
13.70
...
TgtRetInc
TotIntBdIxInv 10.85 +0.01
26.86 +0.02
WellsI
41.96 -0.02
Welltn
37.90 -0.03
WndsrII
VANGUARD INDEX FDS
247.38 -0.25
500
ExtndIstPl 209.67 +0.15
SmValAdml 57.17 +0.07
10.68 +0.01
TotBd2
18.08
...
TotIntl
66.85 -0.04
TotSt
VANGUARD INSTL FDS
34.72
...
BalInst
...
DevMktsIndInst 14.32
DevMktsInxInst 22.38 -0.01
84.96 +0.06
ExtndInst
GrwthInst 72.54 -0.10
10.35
...
InPrSeIn
244.01 -0.25
InstIdx
244.03 -0.24
InstPlus
InstTStPlus 59.61 -0.03
MidCpInst 42.38 +0.06
MidCpIstPl 209.03 +0.30
SmCapInst 70.95 +0.10
...
STIGradeInst 10.62
10.72 +0.01
TotBdInst
TotBdInst2 10.68 +0.01
TotBdInstPl 10.72 +0.01
TotIntBdIdxInst 32.56 +0.03
TotIntlInstIdx r120.92 -0.02
TotItlInstPlId r120.94 -0.02
TotStInst
66.88 -0.04
41.48 -0.03
ValueInst
Western Asset
...
CorePlusBdI NA
21.4 IntlVal
24.8 LifeCon
14.8
22.1
13.9
4.5
29.6
29.6
18.4
23.4
18.4
1.7
28.1
19.6
6.9
2.2
42.7
3.4
3.9
10.6
19.4
30.2
7.5
4.2
6.0
2.0
1.1
30.2
4.1
16.5
1.1
2.0
3.2
2.4
26.4
21.4
25.4
17.4
17.1
9.9
14.6
19.4
19.2
19.5
13.9
15.7
17.3
18.8
20.5
21.2
27.4
10.7
19.0
14.8
26.7
20.0
18.1
1.9
11.2
13.8
15.7
17.3
18.8
20.5
21.1
21.1
8.2
2.3
9.8
14.5
17.0
21.9
18.4
12.1
3.1
26.3
21.3
13.9
25.5
25.5
18.4
28.1
2.2
22.1
22.1
21.4
19.5
19.5
16.5
2.0
3.2
3.2
3.2
2.4
26.4
26.4
21.4
17.3
NA
Exchange-Traded Portfolios | WSJ.com/ETFresearch
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said.
Until recently, vacancy
growth was kept in check because developers and lenders
were showing more restraint
about delivering new supply
than in the years leading up to
the crash.
In the third quarter of this
year, Cushman & Wakefield reported a 9% vacancy rate in
Manhattan, slightly down from
9.1% a year ago. The commercial real-estate firm also
tracked 7.5% vacancy in Seattle, 8.5% in San Francisco,
10.4% in Boston and 10.5% in
Austin.
In some markets, brokers
are dismissing alarms about
new supply. “We consider our
vacancy rate very stable…and
we’re continuing to see rising
rents,” said Tom Pehl, senior
vice president at CBRE Group
Inc.’s Seattle office.
But other analysts agree
supply is surging. Cushman &
Wakefield is tracking 106 million square feet of new office
space under construction in 87
U.S. markets. “These completions are higher than what
we’ve historically seen,” said
Revathi Greenwood, head of
Americas research for Cushman.
Also, new supply is hitting
some markets harder than others. In a December report on
the office sector,” Green Street
Advisors, of Newport Beach,
Calif., said that “Sun Belt pipelines seem okay” but supply
growth in a concern in New
York City and Washington.
“Office fundamentals continue to slowly decelerate as
supply growth waxes and job/
demand growth wanes,” the
report said.
Net YTD
NAV Chg %Ret Fund
SrsIntlGrw
SrsIntlVal
TotalBond
STORES
Go to
wsjwine.com/now
1WSJW1402
ETF
ETF
Closing Chg YTD
Symbol Price (%) (%)
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCI ACWI
iShMSCI EAFE
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
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
IAU
LQD
HYG
EMB
MBB
ACWI
EFA
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
TIP
SHY
IEF
TLT
IWP
MINT
65.77
–0.05
56.04
–0.12
32.0
62.60
...
24.0
269.12
–0.13
19.6
190.15
0.06
15.0
77.13
0.09
12.2
61.22
–0.08
19.4
22.6
108.96
0.08
0.8
98.44
0.12
11.1
72.57
0.11
18.5
52.69
0.02
16.5
12.32
0.57
11.2
120.81
0.13
3.1
87.13
0.15
0.7
115.80
0.05
5.1
106.32
0.05
–0.0
71.92
–0.11
21.5
70.09
–0.03
21.4
63.88
–0.02
28.2
46.46
–0.09
32.7
43.48
–0.01
25.7
60.04
0.05
22.9
107.44
0.47
21.5
110.18
0.15
1.8
134.85
–0.22
28.6
148.79
–0.11
19.5
124.43
–0.02
11.1
187.46
0.07
21.8
153.28
0.06
13.7
126.56
0.09
6.4
158.39
–0.09
19.1
208.42
0.12
16.5
89.19
0.18
10.9
216.26
–0.08
18.7
152.96
–0.25
25.6
114.37
0.01
12.8
38.07
–0.10
2.3
113.28
0.09
0.1
83.78
–0.01
–0.8
105.08
0.04
0.2
125.14
0.30
5.0
120.72
–0.02
24.0
101.68
0.01
0.3
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdSC Grwth
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFinls
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
XtrkrsMSCIEAFE
Closing Chg YTD
Symbol Price (%) (%)
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
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
HEDJ
DXJ
DBEF
156.52
–0.54
47.44
–0.04
14.1
23.01
0.09
–1.5
32.1
36.68
0.14
0.6
121.77
0.69
11.1
33.91
...
22.5
64.61
–0.11
19.3
63.85
–0.13
19.9
247.25
–0.06
25.2
346.11
0.05
14.7
267.19
–0.12
19.5
94.34
0.20
10.3
64.11
–0.67
32.6
52.14
–0.59
7.4
23.20
1.35
10.9
165.18
–0.70
36.0
133.08
0.11
10.0
161.20
0.15
21.1
101.96
0.06
19.7
44.60
0.02
22.1
45.48
0.11
27.1
58.78
–0.05
22.6
70.22
–0.37
18.3
54.38
0.02
23.1
140.95
–0.13
26.4
154.65
0.05
22.0
85.64
–0.06
13.0
83.52
0.08
0.5
87.05
0.12
1.6
122.77
–0.10
19.9
154.94
0.14
17.7
111.81
0.17
15.0
82.24
0.50
–0.4
245.54
–0.11
19.6
79.00
–0.02
–0.6
79.17
0.00
–0.3
148.10
0.13
14.8
81.24
0.10
54.31
0.02
0.0
56.50
0.05
23.1
137.41
–0.08
19.2
0.6
74.11
0.01
21.5
106.36
–0.08
14.4
64.45
–0.16
12.3
59.42
–0.28
19.9
31.92
0.03
13.8
.
THE WALL STREET JOURNAL.
Wednesday, December 27, 2017 | B7
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
24746.21 t 7.85, or 0.03%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.79 21.75
P/E estimate *
20.25 18.72
Dividend yield
2.12
2.39
All-time high 24792.20, 12/18/17
Nasdaq Composite Index
Last
2680.50 t 2.84, or 0.11%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 25.25 24.95
P/E estimate *
19.99 19.04
Dividend yield
1.90
2.07
All-time high: 2690.16, 12/18/17
Last Year ago
6936.25 t 23.71, or 0.34%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.89
24.45
P/E estimate *
21.45
19.54
Dividend yield
1.05
1.23
All-time high: 6994.76, 12/18/17
Current divisor 0.14523396877348
25200
2700
7000
24500
2650
6875
23800
2600
6750
23100
2550
6625
22400
2500
6500
Session high
t
DOWN
Session open
t
Close
UP
Close
Open
Session low
65-day moving average
65-day moving average
65-day moving average
6375
2450
21700
Bars measure the point change from session's open
Oct.
Nov.
Sept.
Dec.
6250
2400
21000
Sept.
Oct.
Nov.
Sept.
Dec.
Oct.
Nov.
Dec.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
High
Latest
Close
Low
Net chg
% chg
High
52-Week
Low
% chg
% chg
3-yr. ann.
YTD
Dow Jones
24778.13 24708.42 24746.21
-7.85
-0.03
24792.20 19732.40
24.1
25.2
11.1
Transportation Avg 10740.17 10659.16 10672.66
-2.31
-0.02
10674.97
8783.74
16.0
18.0
5.1
774.47
651.14
8.5
8.7
4.1
27830.03 23276.73
716.60
600.24
17.6
17.1
19.2
18.9
8.5
9.4
Industrial Average
723.96
Utility Average
Total Stock Market
Barron's 400
716.90
717.03
-4.02
-0.56
27770.46 27720.37 27747.37 -20.75
715.58
713.72
715.04 0.005
Nasdaq Stock Market
Nasdaq Composite
6942.14
Nasdaq 100
6438.24
6915.56
6407.99
-0.07
0.001
6936.25 -23.71
6433.16 -32.00
6994.76
6513.27
-0.34
-0.50
Standard & Poor's
500 Index
2682.74
2677.96
2680.50
-2.84
MidCap 400
SmallCap 600
1908.62
942.18
1902.90
938.37
1905.73
940.27
1.15
0.93
0.06
Other Indexes
Russell 2000
1546.59
1541.21
1544.23
1.30
12819.57 12794.13 12808.90
26.4
29.5
28.9
32.3
13.0
14.2
2690.16
2238.83
18.1
19.7
8.7
0.10
1905.73
945.12
1660.58
815.62
13.4
10.6
14.8
12.2
9.1
10.3
0.08
1548.92
1345.24
12.1
13.8
8.3
-0.11
Trading Diary
Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer.
and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic
trading services, securities dealers and regional exchanges. Minimum
share price of $2 and minimum after-hours volume of 5,000 shares.
Volume, Advancers, Decliners
11.46
0.09
565.10
563.18
564.45
0.97
0.17
NYSE Arca Biotech
4250.80
4198.14
4244.18
41.23
NYSE Arca Pharma
545.40
543.93
544.64
0.55
KBW Bank
108.29
106.82
107.27
-0.69
85.96
84.22
85.65
1.64
149.04
2.59
Value Line
PHLX§ Gold/Silver
PHLX§ Oil Service
PHLX§ Semiconductor
Cboe Volatility
149.43
146.59
1259.71
10.46
1248.46
10.13
12808.90 11056.89
0.98
0.10
-0.64
1.95
Company
Philadelphia Stock Exchange
Region/Country Index
Close
Latest
% chg
Net chg
0.04
–0.13
0.05
Americas
Brazil
Canada
Mexico
Chile
DJ Americas
642.95
Sao Paulo Bovespa 75707.73
S&P/TSX Comp
16165.27
S&P/BMV IPC
48451.33
Santiago IPSA
4173.11
–0.33
521.20
…
63.40
–17.41
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
Stoxx Europe 600
Euro Stoxx
Bel-20
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
IBEX 35
SX All Share
Swiss Market
FTSE 100
390.28
389.27
3995.05
5364.72
13072.79
1508.45
22209.05
548.48
1144.97
10182.00
575.65
9394.49
7592.66
…
…
…
…
…
0.15
…
…
1.03
…
…
…
…
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
6069.70
Shanghai Composite 3306.12
Hang Seng
29578.01
S&P BSE Sensex
34010.61
Nikkei Stock Avg
22892.69
Straits Times
3378.16
Kospi
2427.34
Weighted
10421.91
VanEck Vectors Gold Miner GDX
6,170.2
23.23
0.03
0.13
23.24
22.86
iShares MSCI Emg Markets EEM
5,216.4
46.49
0.03
0.06
46.49
46.44
iShares MSCI EAFE ETF EFA
4,229.4
70.09
…
unch.
70.10
70.06
Wells Fargo
WFC
3,514.7
61.13
…
unch.
61.20
61.00
General Electric
GE
2,366.7
17.44
0.01
0.06
17.73
17.41
Ultra Petroleum
UPL
2,283.7
9.22
…
unch.
9.22
9.19
Finl Select Sector SPDR XLF
2,145.8
27.97
…
unch.
28.00
27.93
Percentage gainers…
GPOR
8.0
13.68
0.90
7.04
13.68
12.75
Ampio Pharmaceuticals AMPE
7.1
3.48
0.15
4.50
3.49
3.34
Pioneer Energy Services PES
5.5
2.85
0.10
3.64
2.85
2.85
14.9
15.8
5.3
9.9
11.5
3.6
4304.77
3075.02
34.2
38.0
6.8
560.52
469.13
13.2
13.1
0.3
108.12
88.02
14.9
16.9
12.7
96.72
76.00
12.7
8.6
7.8
117.79
-20.6
-18.9 -11.4
Public Service Enterprise PEG
901.69 34.0
9.14 -14.5
38.9 21.8
-27.0 -10.9
Insys Therapeutics
INSY
Charles Schwab
SCHW
Kinross Gold
KGC
16.1
4.47
0.15
3.47
4.47
4.32
Extreme Networks
EXTR
126.1
12.69
0.28
2.26
12.85
12.25
DDR Corp
DDR
26.4
8.59
-0.22
-2.50
8.81
8.59
Yandex
YNDX
47.5
31.45
-0.75
-2.32
32.20
31.45
34.1
50.01
-0.95
-1.86
51.31
50.01
7.8
8.06
-0.14
-1.71
8.25
8.06
154.6
51.02
-0.85
-1.64
52.00
51.02
...And losers
YTD
% chg
0.001
–0.03
0.02
–0.05
0.69
Closed
0.13
–0.42
Closed
Closed
Closed
Closed
Closed
0.01
Closed
Closed
0.09
Closed
Closed
Closed
Closed
21.6
21.3
23.3
19.0
25.7
5.7
6.2
29.5
8.0
11.1
10.8
10.3
13.9
2.6
15.5
13.5
–0.6
8.9
7.7
14.3
6.3
Closed
…
0.78
25.66
Closed
…
0.21
70.31
–0.20
–46.49
–0.22
–7.55
–13.20 –0.54
–100.58 –0.96
7.1
6.5
34.4
27.7
19.8
17.3
19.8
12.6
Company
Symbol
Future FinTech Group
ADOMANI
Wins Finance Holdings
LongFin Cl A
Riot Blockchain
FTFT
ENDRA Life Sciences
Ampio Pharmaceuticals
Stitch Fix Cl A
Agile Therapeutics
CounterPath
NDRA
Xenon Pharmaceuticals
B Communications
IZEA
Pieris Pharmaceuticals
Insys Therapeutics
XENE
High
52-Week
Low
% chg
8.20 1.30
18.31 2.35
465.00 19.80
142.82 4.69
46.20 3.02
-12.6
...
32.4
...
792.0
Long Island Iced Tea
Sigma Labs
Estre Ambiental
Valeritas Holdings
Portola Pharmaceuticals
LTEA
4.83
3.33
29.14
2.95
3.31
1.03
0.59
4.52
0.43
0.47
27.11
21.53
18.36
17.06
16.55
5.88 2.15
3.55 0.38
30.00 14.48
6.66 1.82
6.79 1.75
...
214.2
...
-54.7
35.1
CS Axela 3x Inverse Brent
Diana Containerships
Sienna Biopharmaceuticals
Intersections
Presbia
DBRT
2.90
18.80
4.30
7.34
8.20
0.40
2.50
0.57
0.97
1.08
16.00
15.34
15.28
15.23
15.17
9.95 2.10
22.64 12.20
7.85 1.37
7.37 1.38
15.02 4.10
-64.8
-12.6
-5.1
395.9
-12.1
2xLeveraged Lg ETRACS WF
Miragen Therapeutics
InflaRx
UBS ProSh 3x Inv Crude
Bravo Brio Restaurant Grp
LBDC
SFIX
AGRX
CPAH
BCOM
IZEA
PIRS
INSY
Most Active Stocks
Company
Symbol
General Electric
Bank of America
Micron Technology
Pareteum
SPDR S&P 500
GE
Apple
Finl Select Sector SPDR
VanEck Vectors Gold Miner
Sucampo Pharm Cl A
iShares MSCI Emg Markets
AAPL
BAC
MU
TEUM
SPY
XLF
GDX
SCMP
EEM
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52,957
41,750
41,520
39,862
38,250
-30.1
-39.3
4.5
820.9
-45.1
32,808
31,555
28,005
26,314
24,398
22.5
-45.3
-20.1
2204.2
-53.1
52-Week
High
Low
New car loan
4.50%
3.50
3.00
2.50
J FMAM J J A S ON D
2017
2.37%
407-422-7129
Tuesday
t
State Bank of Cross Plains
2.46%
Cross Plains, WI
608-798-3961
Broadway National Bank
San Antonio, TX
t
4.00
TrustCo Bank
Orlando, FL
One year ago
2.50%
210-283-6500
Cambridge Savings Bank
2.59%
Cambridge, MA
888-418-5626
American Trust Savings Bank
2.75%
Dubuque, IA
800-373-1841
1
3 6
month(s)
1 2 3 5 710
years
maturity
Yield/Rate (%)
Last (l)Week ago
Federal-funds rate target
1.25-1.50 1.25-1.50
Prime rate*
4.50
4.50
Libor, 3-month
1.64
1.69
Money market, annual yield
0.34
0.34
Five-year CD, annual yield
1.49
1.50
30-year mortgage, fixed†
3.88
3.96
15-year mortgage, fixed†
3.33
3.39
Jumbo mortgages, $424,100-plus† 4.35
4.27
Five-year adj mortgage (ARM)† 4.03
3.82
New-car loan, 48-month
3.34
3.33
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.50 l
l
3.75
l
1.00
0.26 l
1.19 l
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
1.50
4.50
1.69
0.36
1.50
4.33
3.50
4.87
4.03
3.36
1.25
1.25
1.43
-0.09
-0.01
-0.14
0.01
-0.08
0.64
0.31
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
IFRX
WTID
BBRG
* 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.
10
5
1.50
0
0.75
–5
0.00
–10
30
High
-20.13
-12.86
-11.90
-10.77
-10.68
52-Week
Low
% chg
9.49 1.70
9.20 1.33
11.01 9.00
40.00 2.00
67.10 22.17
12.7
94.3
4.80
3.05
9.25
3.32
49.00
-1.21
-0.45
-1.25
-0.40
-5.86
51.07
4.20
18.91
2.13
3.61
-5.63
-0.42
-1.88
-0.20
-0.31
99.24 50.66
-9.93
-9.09 162024.28 1.56
29.25 15.22
-9.04
5.75 1.88
-8.58
7.14 1.86
-7.95
-44.4
unch.
16.58
9.63
22.13
15.55
2.50
-1.43
-0.81
-1.86
-1.27
-0.20
-7.92
-7.76
-7.75
-7.57
-7.41
-13.4
104.5
...
...
-36.7
28.71 15.80
18.00 4.65
26.92 14.47
49.24 15.44
5.30 1.65
-91.7
115.1
-99.9
SCMP
BOMN
MAGS
DOO
NICK
UPW
HYLB
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52-Week
High
Low
5,213
26,314
605
400
105
46923
2204
1753
1188
716
7.90
18.00
30.73
5.35
43.22
-1.25
5.88
8.47
5.08
0.24
10.35 6.76
18.10 9.30
35.16 12.15
8.00 4.13
43.61 37.07
12,243
44
41
1,066
41
692
665
635
623
609
18.79
8.58
46.29
50.38
26.38
5.03
-3.05
-1.33
0.22
0.21
20.77 6.70
12.50 7.59
54.09 38.00
51.56 49.88
26.95 25.96
U.S.-dollar foreign-exchange rates in late New York trading
15%
2.25
Symbol
IBDD
Latest Session
Close Net chg % chg
Ranked by change from 65-day average*
Company
Euro
Yen
WSJ Dollar index
2017
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
2.305
2.285
2.313
1.818
3.117 1.581
2.467
3.171
2.770
5.630
2.980
2.222
2.464
3.177
2.750
5.613
2.960
2.223
2.609
3.390
2.790
5.890
3.120
2.353
2.058
2.879
2.380
4.948
2.660
1.736
3.154
6.395
3.792
6.559
2.874
4.651
805.951
5.570
5.544
6.105
5.279
9.403 6.752
1.233
3.891
2.222
4.568
1.823
2.491
Country/currency
US$vs,
YTDchg
Tues
in US$ per US$ (%)
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
US$vs,
YTDchg
Tues
in US$ per US$ (%)
Country/currency
Americas
Europe
Argentina peso
.0545 18.3345 15.5
Brazil real
.3019 3.3120 1.8
Canada dollar
.7882 1.2688 –5.6
Chile peso
.001616 619.00 –7.6
Ecuador US dollar
1
1 unch
Mexico peso
.0503 19.8670 –4.2
Uruguay peso
.03481 28.7300 –2.1
Venezuela b. fuerte .099451 10.0553 0.6
Czech Rep. koruna
Denmark krone
Euro area euro
Hungary forint
Iceland krona
Norway krone
Poland zloty
Russia ruble
Sweden krona
Switzerland franc
Turkey lira
Ukraine hryvnia
UK pound
Asia-Pacific
Australian dollar
.7728 1.2940 –6.8
China yuan
.1528 6.5466 –5.7
Hong Kong dollar
.1280 7.8115 0.7
India rupee
.01562 64.034 –5.8
Indonesia rupiah .0000737 13561 0.3
Japan yen
.008832 113.23 –3.2
Kazakhstan tenge .003008 332.45 –0.4
Macau pataca
.1244 8.0399 1.6
Malaysia ringgit
.2448 4.0850 –8.9
New Zealand dollar
.7038 1.4209 –1.6
Pakistan rupee
.00906 110.350 5.7
Philippines peso
.0200 49.927 0.6
Singapore dollar
.7450 1.3423 –7.3
South Korea won .0009293 1076.12 –10.9
Sri Lanka rupee
.0065488 152.70 2.9
Taiwan dollar
.03339 29.951 –7.7
Thailand baht
.03053 32.760 –8.5
Vietnam dong
.00004405 22703 –0.3
Commodities
.04602 21.731 –15.4
.1593 6.2778 –11.2
1.1859 .8433 –11.3
.003801 263.10 –10.6
.009442 105.91 –6.2
.1203 8.3101 –3.9
.2824 3.5415 –15.4
.01734 57.681 –5.9
.1198 8.3479 –8.3
1.0108 .9893 –2.9
.2626 3.8082 8.1
.0358 27.9260 3.1
1.3374 .7477 –7.7
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6522 .3771 –0.03
.0561 17.8370 –1.6
.2866 3.4896 –9.3
3.3106 .3021 –1.2
2.5978 .3849 –0.01
.2744 3.644 0.1
.2666 3.7515 0.02
.0800 12.5044 –8.7
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 86.74 –0.004–0.005 –6.67
Sources: Tullett Prebon, WSJ Market Data Group
COMMODITIES
Tuesday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
WSJ
.COM
NYSE Arca
Currencies
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
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
Nasdaq
Total volume*1,288,311,260 161,472,291
Adv. volume* 593,249,983 93,285,089
Decl. volume* 656,729,163 63,401,947
Issues traded
3,038
1,333
Advances
1,350
834
Declines
1,533
458
Unchanged
155
41
New highs
111
118
New lows
33
28
Closing tick
75
3
Closing Arms†
0.97
1.27
Block trades*
4,725
863
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
1455.906
EMBI Global, J.P. Morgan
MGEN
CORT
10-yr Treasury, Ryan ALM 1720.506
DJ Corporate
380.954
Aggregate, Barclays Capital 1937.870
High Yield 100, Merrill Lynch 2857.016
Fixed-Rate MBS, Barclays 1981.140
Muni Master, Merrill
520.512
Treasury, Ryan ALM
LENS
Corcept Therapeutics
Nicholas Financial
ProShares Ultra Utilities
Xtrackers USD HY Corp Bd
iSh iBonds Mar 2023 Corp
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.00
Close
INTX
177.20 114.76
28.33 22.00
25.71 19.52
18.10
9.30
47.93 34.35
Corporate Borrowing Rates and Yields
Bond total return index
SNNA
170.57 -2.54
27.97 -0.29
23.20 1.35
18.00 5.88
46.46 -0.09
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Interest rate
DCIX
OCIP
Forex Race
3.75%
3.33%
PTLA
OCI Partners
Sucampo Pharm Cl A
Boston Omaha
Magal Security Systems
WisTree Intl Div Ex-Finl
* Volumes of 100,000 shares or more are rounded to the nearest thousand
notes and bonds
Bankrate.com avg†:
VLRX
32.05 17.36
30.03 21.77
49.89 21.49
3.99
0.50
268.60 222.73
s
A consumer rate against its
benchmark over the past year
ESTR
0.29
-0.33
-4.24
120.47
-0.12
17.43
29.78
42.25
2.80
267.19
s
Selected rates
SGLB
Volume Movers
s
U.S. consumer rates
Symbol
43.45
35.87
34.62
32.73
27.32
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
Consumer Rates and Returns to Investor
Company
6.24 1.89
5.00 1.32
WINS 241.00 61.98
LFIN
54.42 13.42
RIOT
31.22 6.70
ADOM
AMPE
Total volume* 527,320,319 16,560,754
Adv. volume* 338,503,291 11,795,902
Decl. volume* 178,787,927 2,758,123
Issues traded
3,065
333
Advances
1,666
164
Declines
1,277
145
Unchanged
122
24
New highs
174
7
New lows
26
4
Closing tick
203
35
Closing Arms†
0.66
0.22
Block trades*
4,887
128
Percentage Losers
Latest Session
Close Net chg % chg
CREDIT MARKETS & CURRENCIES
t
Low
0.03 267.32 267.07
Sources: SIX Financial Information; WSJ Market Data Group
New car loan
After Hours
% chg
High
0.09
SPY
Percentage Gainers...
3077.15
395.52
263.77
The Global Dow
DJ Global Index
DJ Global ex U.S.
t
Net chg
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
Prime rate
Last
6,975.4 267.28
SPDR S&P 500
503.24
1341.69
16.04
3.54
-0.97
Volume
(000)
Symbol
564.45
1.77 192.66
1258.88 -12.28
0.35
10.25
NYSE NYSE Amer.
Most-active issues in late trading
Gulfport Energy
NYSE Composite
World
5383.12
4863.62
Late Trading
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
614.89
6.88
190.47
59.97
2.643
1284.10
2.60
1.50
-0.024
8.70
1.13
616.58
532.01
1.38 195.14
59.97
2.57
3.93
-0.90
0.68 1346.00
166.50
42.53
2.56
1137.30
% Chg
8.18
YTD
% chg
8.40
-1.18 -1.06
11.26 11.63
-29.73 -29.03
12.91 11.66
.
THE WALL STREET JOURNAL.
B8 | Wednesday, December 27, 2017
COMMODITIES
Futures Contracts
Contract
High hilo
Low
Open
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
Dec
3.2210
3.2580
3.2210
3.2560 0.0415
March'18 3.2435 3.3000 s
3.2310
3.2805 0.0420
Gold (CMX)-100 troy oz.; $ per troy oz.
Dec
1282.40 1284.10
1281.80 1284.10
8.70
Feb'18
1279.00 1288.40
1277.70 1287.50
8.70
April
1284.40 1293.00
1282.50 1292.20
8.80
June
1288.00 1297.60
1288.00 1296.80
8.80
Aug
1296.50 1301.40
1295.80 1301.30
8.80
Dec
1302.00 1310.70
1302.00 1310.30
8.80
Palladium (NYM) - 50 troy oz.; $ per troy oz.
Dec
1056.75 1060.80 s
1056.75 1057.75 12.90
March'18 1027.60 1046.50 s 1027.60 1042.45 12.90
June
1026.85 1039.15 s
1026.85 1035.15 12.85
Platinum (NYM)-50 troy oz.; $ per troy oz.
Dec
922.60
0.50
April'18
923.00
929.30
920.10
927.50
1.80
Silver (CMX)-5,000 troy oz.; $ per troy oz.
Dec
16.480
16.480
16.480
16.520 0.163
March'18 16.445 16.640
16.365
16.604 0.160
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
Feb
58.40
60.01 s
58.32
59.97
1.50
March
58.48
60.04 s
58.39
60.00
1.46
April
58.50
60.02 s
58.40
59.98
1.44
May
58.56
59.90 s
58.34
59.86
1.38
June
58.28
59.72 s
58.20
59.67
1.33
Dec
56.70
57.83 s
56.53
57.71
1.01
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
Jan
1.9635
2.0440 s
1.9629
2.0385 .0691
Feb
1.9699
2.0416 s
1.9648
2.0380 .0661
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
Jan
1.7535
1.8099
1.7460
1.7866 .0243
Feb
1.7575
1.8153 s
1.7525
1.7928 .0260
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
Jan
2.708
2.780
2.630
2.643 –.024
Feb
2.681
2.766
2.635
2.654 –.004
March
2.641
2.720
2.607
2.631
.009
April
2.575
2.630
2.542
2.578
.018
May
2.596
2.637
2.554
2.591
.019
Oct
2.700
2.727
2.652
2.686
.018
Open
interest
747
158,455
146
331,536
37,561
36,577
12,385
25,479
22
34,541
1,431
3
70,667
208
160,592
481,977
365,853
166,967
127,180
252,574
252,225
30,517
138,271
Settle
Open
interest
Chg
Agriculture Futures
Corn (CBT)-5,000 bu.; cents per bu.
March
July
352.00
368.75
March
May
241.75
247.50
Jan
March
952.25
963.00
Jan
March
313.70
317.60
Jan
March
32.81
33.01
Jan
March
1196.00
1218.50
353.25
369.75
351.00
367.75
352.75
369.50
.75 845,723
.75 239,566
240.25
247.00
243.25
249.00
.75
.75
Oats (CBT)-5,000 bu.; cents per bu.
244.00
249.50
Soybeans (CBT)-5,000 bu.; cents per bu.
963.00
974.00
952.25
963.00
Soybean Meal (CBT)-100 tons; $ per ton.
317.20
321.30
313.70
317.60
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
33.33
33.55
32.81
33.01
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
1196.00
1221.50
1172.50
1201.50
424.00
437.25
March
May
422.50
436.75
March
May
612.25
620.50
Jan
March
141.625
138.625
Dec
Feb'18
120.075
118.575
426.75
439.50
420.75
434.00
315.20
319.40
2.40 30,165
2.70 175,542
33.20
33.42
.46 27,959
.48 208,701
2,630
6,660
–2.50 297,055
–2.00 85,682
420.00
433.25
–2.25 193,648
–2.50 56,982
611.00
618.75
–.75
–1.25
39,885
12,935
144.400
141.350
2.850
2.800
11,776
22,924
121.500
121.475
1.675
2,016
2.900 120,438
417.25
431.00
Wheat (MPLS)-5,000 bu.; cents per bu.
615.00
622.50
9.75 78,796
10.25 326,665
422.25
435.50
Wheat (KC)-5,000 bu.; cents per bu.
424.75
438.00
959.25
970.50
1179.50 –15.50
1208.50 –14.50
Wheat (CBT)-5,000 bu.; cents per bu.
March
May
4,631
1,508
611.00
618.50
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
145.000
141.925
141.625
138.600
26,711
137,283
Cattle-Live (CME)-40,000 lbs.; cents per lb.
32,609
375,112
291,492
166,644
127,114
81,741
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
Feb
April
70.250
74.775
Jan
March
453.00
443.90
121.750
121.575
119.800
118.575
71.675
75.525
69.900
74.550
71.525
75.375
1.550
.600
86,894
60,670
452.00
444.40
1.40
1.60
2,037
3,580
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
455.40
445.70 s
449.50
441.50
Cash Prices | WSJ.com/commodities
Tuesday, December 26, 2017
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
Tuesday
Tuesday
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
Energy
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
0.9805
1.1025
2.700
2.680
20.920
2.560
2.530
2.370
2.610
59.850
12.100
Closed
12434
Other metals
LBMA Platinum Price PM
*Closed
Platinum,Engelhard industrial
Closed
Platinum,Engelhard fabricated
Closed
Palladium,Engelhard industrial
Closed
Palladium,Engelhard fabricated
Closed
Aluminum, LME, $ per metric ton
*2137.0
Copper,Comex spot
3.2560
Iron Ore, 62% Fe CFR China-s
74.1
Shredded Scrap, US Midwest-s,w
307
Steel, HRC USA, FOB Midwest Mill-s
646
Fibers and Textiles
Metals
Gold, per troy oz
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
Closed
Closed
1283.00
1424.13
*1268.05
*n.a.
1334.84
1347.68
1347.68
1555.52
1261.09
1347.68
Silver, troy oz.
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
Closed
Closed
16.5300
20.6630
Closed
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
0.6200
0.7668
*88.6
64.500
n.a.
Grains and Feeds
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, 5% Broken White, Thailand-l,w
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
4.85
113
3.2400
97.3
486.0
n.a.
88
n.a.
2.7075
385.00
25.00
8.0850
Tuesday
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
310.70
9.2750
7.2850
4.2600
4.0300
5.2513
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
185.39
170.77
0.8742
2.1700
142.00
148.75
65.00
n.a.
n.a.
n.a.
1.5450
15.10
0.56
61.31
n.a.
0.8325
n.a.
n.a.
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
33.4400
0.2300
n.a.
0.3233
0.2650
n.a.
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data
as of 12/22.
Source: WSJ Market Data Group
December 26, 2017
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
guide to general levels but don’t always represent actual transactions.
Week
Latest ago
Nov. index
level
Chg From (%)
Oct. '17 Nov. '16
U.S. consumer price index
246.669
253.492
All items
Core
0.002
–0.06
2.2
1.7
0.50
0.50
0.25
Treasury bill auction
Australia
1.50
1.50
1.50
1.50
4 weeks
13 weeks
26 weeks
Overnight repurchase
Latest
4.50 4.50 4.50 3.75
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
Policy Rates
Euro zone
Switzerland
0.00
0.50
0.00
0.50
0.00
0.50
1.44
1.49
0.48
0.00
0.50
—52-WEEK—
High Low
1.245 1.245 1.300 0.400
1.455 1.355 1.455 0.505
1.530 1.480 1.530 0.590
Secondary market
2.00
1.25
Federal funds
30 days
60 days
Other short-term rates
Effective rate 1.4200 1.4200 1.4400 0.5900
High
1.5625 1.5625 1.6125 0.8125
Low
1.3000 1.3000 1.3000 0.4000
Bid
1.4100 1.4100 1.4100 0.4000
Offer
1.4200 1.4200 1.4300 0.5800
3.565 3.479 3.865 3.253
3.597 3.502 3.899 3.281
Week
Latest
ago
52-Week
high
low
3.25
3.25
Call money
Key Interest Rates
Commercial paper (AA financial)
Data are annualized on a 360-day basis. Treasury yields are per annum,
on actively traded noninflation and inflation-indexed issues that are
adjusted to constant maturities. Data are from weekly Federal Reserve
release H.15.
90 days
52-Week
High
Low
Federal funds (effective)
1.41
1.16
0.60
1.52
1.50
1.54
1.35
1.38
1.45
1.52
1.50
1.54
0.50
0.68
0.74
1.46
1.56
1.60
1.38
1.47
1.53
1.46
1.56
1.60
0.67
0.76
0.84
Discount window primary credit
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Conventional mortgages
n.a.
n.a.
Treasury yields at constant
maturities
1-month
3-month
6-month
1-year
2-year
3-year
5-year
7-year
10-year
20-year
1.22
1.36
1.52
1.72
1.88
1.98
2.23
2.37
2.46
2.66
1.22
1.32
1.48
1.70
1.82
1.93
2.15
2.29
2.37
2.56
52-Week
High
Low
Treasury yields (secondary market)
1.41
Commercial paper
Nonfinancial
1-month
2-month
3-month
Financial
1-month
2-month
3-month
Week Ended
Dec 22 Dec 15
1.22
1.36
1.52
1.72
1.88
1.98
2.23
2.37
2.55
2.91
0.44
0.51
0.60
0.80
1.17
1.39
1.65
1.90
2.07
2.43
1-month
3-month
6-month
1.19
1.34
1.49
1.20
1.30
1.45
1.20
1.34
1.49
0.43
0.50
0.59
0.46
0.52
0.54
0.71
0.75
0.39
0.47
0.49
0.67
0.70
0.46
0.52
0.63
0.93
0.97
-0.02
0.20
0.28
0.60
0.65
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
TIPS
5-year
7-year
10-year
20-year
Long-term avg
Interest rate swaps
1-year
2-year
3-year
4-year
5-year
7-year
10-year
30-year
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
Corporate bonds, Moody's seasoned
Aaa
Baa
n.a.
n.a.
n.a.
n.a.
143,011
48,604
128,730
45,502
388,326
158,212
3,509
2,181
173,309
50,115
994
6,550
March
June
150-290 151-250
150-050 150-170
150-240
150-050
151-200
150-160
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
March
June
123-155 123-215
123-020 123-100
123-135
123-015
5.0 3,288,796
5.5
762
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
March
115-285 115-310
115-270
115-307
2.2 3,068,187
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
107-057 107-070
107-057 107-067
.2 10,535
Dec
March'18 106-317 107-002
106-310 107-000
… 1,767,858
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
98.703
98.703
98.700
98.703
… 102,748
Dec
Jan'18
98.595
98.595
t 98.590
98.595
… 280,284
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
97.625
97.922
97.625
97.875
.250 24,435
March
1 Month Libor (CME)-$3,000,000; pts of 100%
98.4550 98.4550
98.4550 98.4450 –.0175
7,681
Jan
Feb
98.4625 98.4625
t 98.4525 98.4550 –.0100
2,825
Eurodollar (CME)-$1,000,000; pts of 100%
98.3225 98.3275
98.3200 98.3250 .0025 231,649
Jan
March
98.2050 98.2100
98.2050 98.2050
… 1,413,037
June
98.0400 98.0450
t 98.0350 98.0400
… 1,318,542
Dec
97.8250 97.8300
97.8150 97.8250 .0050 1,445,898
Open
interest
Jan
March
.8854
.8880
.8866
.8899
.8853
.8874
.8865
.8892
.0011
2,314
.0011 229,084
Jan
March
.7869
.7870
.7893
.7898
.7862
.7865
.7888
.7894
.0028
1,167
.0028 111,028
Jan
March
1.3399
1.3429
1.3405
1.3444
1.3383
1.3399
1.3404 –.0001
2,666
1.3431 –.0001 185,761
March
1.0190
1.0192
1.0159
1.0186
Jan
Feb
March
June
.7722
.7719
.7719
.7720
.7729
.7728
.7731
.7723
.7722
.7712
.7712
.7715
.7732
.7730
.7730
.7730
March
June
.04990
.04923
.05043
.04961
Jan
March
1.1907
1.1946
1.1916
1.1960
Canadian Dollar (CME)-CAD 100,000; $ per CAD
British Pound (CME)-£62,500; $ per £
Swiss Franc (CME)-CHF 125,000; $ per CHF
Australian Dollar (CME)-AUD 100,000; $ per AUD
Mexican Peso (CME)-MXN 500,000; $ per MXN
20.0 751,351
18.0
12
123-200
123-085
Chg
Currency Futures
t
Euro (CME)-€125,000; $ per €
Interest Rate Futures
Settle
Japanese Yen (CME)-¥12,500,000; $ per 100¥
.0008
81,289
.0017
1,280
.0016
471
.0017 106,315
.0018
316
.04953
.04882
.04962 –.00041 184,520
.04882 –.00040
149
1.1879
1.1922
1.1897
1.1941
.0013
7,678
.0013 463,206
Index Futures
Mini DJ Industrial Average (CBT)-$5 x index
March
June
24779
24778
24798
24809
24707
24730
24792
24807
March
2686.00
2688.90
2683.80
2687.10
1.00
March
June
2686.75
2690.50
2689.50
2691.00
2683.50
2685.25
2687.00
2689.00
1.00 3,035,200
1.00 21,220
March
1909.00
1913.80
1906.10
1910.30
1.30
March
June
6482.5
6508.8
6492.0
6509.5
6432.3
6452.5
6460.0
6478.5
March
1544.30
1550.30
1543.40
1547.80
3.40
March
1486.40
1486.80
1485.70
1486.70
–1.70
89
March
June
92.89
92.56
92.96
92.56
92.76
92.45
92.80
92.48
–.12
–.12
42,206
1,005
S&P 500 Index (CME)-$250 x index
Mini S&P 500 (CME)-$50 x index
26 143,729
27
177
Mini S&P Midcap 400 (CME)-$100 x index
Mini Nasdaq 100 (CME)-$20 x index
Mini Russell 2000 (ICE-US)-$100 x index
Mini Russell 1000 (ICE-US)-$100 x index
U.S. Dollar Index (ICE-US)-$1,000 x index
50,545
91,744
–23.8 286,473
–23.3
652
24,214
Source: SIX Financial Information
Bonds | WSJ.com/bonds
Tracking Bond Benchmarks
Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week
highs and lows for different types of bonds
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
3.1
2.770 2.380 2.790
U.S. Aggregate
U.S. Corporate Indexes Bloomberg Barclays
2.0
Mortgage-Backed
1949.67
1.6
Ginnie Mae (GNMA) 2.930 2.630 3.090
2.980 2.660 3.120
3.300 3.030 3.500
1161.47
2.2
Fannie mae (FNMA) 2.990 2.670 3.120
2.930 2.530 2.990
1788.71
2.3
Freddie Mac (FHLMC) 3.010 2.680 3.130
10.9 Long term
4.090 3.990 4.680
520.51
4.3 Muni Master
2.222 1.736 2.353
4.2 Double-A-rated
2.760 2.470 2.870
363.90
4.8 7-12 year
2.247 1.744 2.432
3.600 3.340 3.830
410.18
6.3
12-22 year
2.527 2.213 2.872
398.26
7.3
22-plus year
2.873 2.716 3.449
3.7
3899.73
567.59
6.5
Triple-B-rated
High Yield Bonds Merrill Lynch
7.3
417.01
1981.14
Intermediate
2614.80
720.09
Yield (%)
Latest Low High
Index
U.S. Corporate
5.9
2786.92
YTD total
return (%)
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
1937.87
Total
return
close
High Yield Constrained 5.818 5.373 6.189
Global Government J.P. Morgan†
Triple-C-rated
10.658 9.584 11.425
543.65
1.2
Global Government 1.460 1.300 1.560
2857.02
6.5
High Yield 100
5.630 4.948 5.890
755.56
0.3
Canada
2.070 1.570 2.190
378.52
7.5
Global High Yield Constrained 5.268 4.934 5.827
372.22
0.9
EMU§
1.078 0.933 1.363
306.25
6.7
Europe High Yield Constrained 2.435 1.897 3.298
713.49
1.0
France
0.810 0.690 1.210
Germany
0.490 0.210 0.620
Japan
0.390 0.340 0.460
Netherlands
0.600 0.360 0.760
U.K.
1.570 1.340 1.790
9.0
419.25
508.12
U.S Agency Bloomberg Barclays
1634.88
1.8
U.S Agency
2.240 1.690 2.240
288.66
1460.79
1.0
10-20 years
2.100 1.490 2.100
561.47
3365.66
7.7
20-plus years
2.990 2.730 3.420
924.52
3.000 2.610 3.050
805.95
4.8 Yankee
2457.29
-1.3
0.2
-0.8
1.2
9.0
Emerging Markets ** 5.570 5.279 6.105
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
** EMBI Global Index
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
n.a.
n.a.
n.a.
n.a.
One month
Three month
Six month
One year
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1.63
1.55
1.67
1.56375
1.68577
1.83363
2.10216
-0.417
-0.385
-0.321
-0.245
-0.367
-0.329
-0.271
-0.186
Latest
1.51113
1.64203
1.78830
2.06888
1.56375
1.68577
1.83363
2.10216
0.76111
0.99706
1.31656
1.68456
-0.407
-0.385
-0.325
-0.260
-0.376
-0.334
-0.227
-0.086
-0.417
-0.387
-0.325
-0.261
-0.370
-0.329
-0.274
-0.194
Value
Traded
-0.366
-0.318
-0.220
-0.081
-0.375
-0.332
-0.276
-0.194
52-Week
High
Low
1.527 34.900 1.532 0.471
1.555 106.660 1.555 0.496
Open Implied
Settle Change Interest Rate
Notes on data:
Federal-funds rate is an average for the seven days ended Wednesday, weighted according to rates
on broker trades; Commercial paper rates are discounted offer rates interpolated from sales by
discounted averages of dealer bid rates on nationally traded certificates of deposit; Discount window
primary credit rate is charged for discounts made and advances extended under the Federal
Reserve's primary credit discount window program; rate is average for seven days ended Wednesday;
Inflation-indexed long-term TIPS average is indexed and is based on the unweighted average bid
yields for all TIPS with remaining terms to maturity of 10 years or more; Swap rates are International
Swaps and Derivatives Association (ISDA(R)) mid-market par rates for a fixed-rate payer, who in
return receives three-month Libor, and are based on rates collected at 11:00 a.m. ET by Garban
Intercapital PLC; Source is Reuters; Moody's triple-AAA rates are averages of industrial bonds only;
Muni rates are Thursday quotes based on the Bond Buyer Index for general obligation, 20 years to
maturity, mixed quality debt; Mortgage rates are contract rates on commitments for fixed-rate first
mortgages
Sources: Federal Reserve; for additional information on these rate data and their derivation,
please see, www.federalreserve.gov/releases/h15/data.htm
Treasury Dec
Treasury Jan
Treasury Feb
Month ago
Year ago
l
1.895
2.484
1.744
2.344
1.206
2.541
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
2.750
Australia 2
1.986
l
1.986
1.775
1.918
8.3
9.1
2.750
10
2.700
l
2.700
2.516
2.872
23.7
21.6
33.0
0.000
France 2 -0.505
l
-0.505
-0.558
-0.691 -240.9
0.730
-172.5
-240.0
-189.7
-174.6
-181.1
-254.4
-199.6
-206.5
-227.9
-135.0
71.2
0.750
10
0.738
l
0.738
0.705
0.000
Germany 2 -0.649
l
-0.649
-0.686
0.500
10
0.419
l
0.419
0.364
-0.790 -255.2
0.262 -204.4
Italy 2 -0.214
l
-0.214
-0.271
-0.145
-211.7
-210.9
l
1.914
1.823
1.851
-54.9
-57.0
-69.0
l
-0.142
-0.186
-0.176
-205.2
-203.7
-138.2
0.100
Japan 2 -0.149 t
10 0.044 t
l
0.044
0.028
-244.0
-248.2
2.750
Spain 2 -0.384
l
-0.384
-0.344
-0.252
-228.8
-227.9
-145.8
-99.5
-101.6
-113.9
10
0.100
1.914
0.060 -241.9
1.450
10
1.468
l
1.468
1.498
1.402
1.750
U.K. 2
0.451
l
0.451
0.463
0.073
4.250
10
1.265
l
1.265
1.253
1.203
-145.3
-119.9
-144.4
-113.3
-121.9
-133.9
in that same company’s share price.
DTCC GCF Repo Index Futures
Eurodollars
U.S. 2 1.903 s
10 2.463 t
l
Investment-grade spreads that tightened the most…
DTCC GCF Repo Index
Treasury
MBS
1.750
2.250
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
0.72
Euro interbank offered rate (Euribor)
One month
Three month
Six month
One year
Country/
Coupon (%) Maturity, in years
Corporate Debt
Euro Libor
One month
Three month
Six month
One year
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
2.50
Libor
State and local bonds
1 month
3 month
6 month
3,747
3,639
Contract
High hilo
Low
Open
Source: Tullett Prebon
3.25
Week Ended
Dec 22 Dec 15
Open
interest
Chg
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
2.050
30-year mortgage yields
2.00
Settle
Milk (CME)-200,000 lbs., cents per lb.
15.43
15.44
15.41
15.41
–.02
Dec
Jan'18
13.97
13.99
13.81
13.94
–.08
Cocoa (ICE-US)-10 metric tons; $ per ton.
1,807
1,868
1,807
1,856
47
March
May
1,817
1,862
1,813
1,848
33
Coffee (ICE-US)-37,500 lbs.; cents per lb.
120.75
122.30
120.65
122.20
1.80
March
May
122.80
124.65
122.80
124.60
1.90
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
14.60
14.75
14.57
14.70
.10
March
May
14.50
14.68
14.50
14.64
.10
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
26.90
26.90
26.90
26.94
…
March
May
27.14
27.14
27.14
27.14
.10
Cotton (ICE-US)-50,000 lbs.; cents per lb.
77.90
78.16 s
77.17
77.43
–.44
March
May
78.15
78.33 s
77.42
77.52
–.52
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
135.25
135.25
132.65
134.05 –1.20
Jan
March
135.45
135.80
133.70
133.85 –2.05
0.050
Fannie Mae
Discount
2.00
Prime rates
U.S.
Canada
Japan
1.46
U.S. government rates
52-Week
High
Low
Week
Latest ago
0.50
International rates
Week
ago
—52-WEEK—
High Low
Britain
U.S.
Contract
High hilo
Low
Open
Global Government Bonds: Mapping Yields
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
Inflation
WSJ.com/commodities
98.650 0.005 3934 1.350
98.545 0.005 2128 1.455
98.545 0.005 813 1.455
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 December 14, 2017.
Other prime rates aren’t directly comparable;
lending practices vary widely by location;
Discount rate is effective December 14, 2017.
DTCC GCF Repo Index is Depository Trust &
Clearing Corp.'s weighted average for overnight
trades in applicable CUSIPs. Value traded is in
billions of U.S. dollars. Federal-funds rates are
Tullett Prebon rates as of 5:30 p.m. ET. Futures
on the DTCC GCF Repo Index are traded on
NYSE Liffe US.
Sources: Federal Reserve; Bureau of Labor
Statistics; DTCC; SIX Financial Information;
Tullett Prebon Information, Ltd.
Maturity
Current
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
Issuer
Symbol Coupon (%)
Citigroup
General Electric
Medtronic
Oracle
C
GE
MDT
ORCL
2.700 March 30, ’21
5.000 Jan. 21, ’49
3.500 March 15, ’25
3.875 July 15, ’20
35 –7
109
–6
43 –5
13 –4
39
113
52
15
74.78
17.43
81.47
47.43
–0.94
0.29
–0.09
0.15
Abbott Laboratories
Bank of America
Credit Suisse AG
Goldman Sachs
ABT
BAC
CS
GS
4.750 Nov. 30, ’36
4.450 March 3, ’26
3.625 Sept. 9, ’24
3.850 Jan. 26, ’27
107
105
62
100
–3
–3
–3
–3
110
105
64
105
57.00
29.78
17.90
257.72
0.12
–0.33
–0.33
–0.48
47
90
n.a.
57
30.68
…
115.65
170.57
–0.52
…
–0.44
–2.54
124
n.a.
69
71
...
53.81
54.01
1176.76
...
–0.35
–0.83
0.72
…And spreads that widened the most
Fifth Third Bank
Pacific Gas And Electric
Prudential Financial
Apple
FITB
PCG
PRU
AAPL
2.200
3.300
4.600
2.450
Oct. 30, ’20
Dec. 1, ’27
May 15, ’44
Aug. 4, ’26
44
99
103
60
Anheuser–Busch Inbev Finance
Bank of New York Mellon
U.S. Bancorp
Amazon.com
ABIBB
BK
USB
AMZN
4.900
3.300
2.375
3.875
Feb. 1, ’46
Aug. 23, ’29
July 22, ’26
Aug. 22, ’37
119
94
72
68
5
5
5
4
4
4
4
3
High-yield issues with the biggest price increases…
Maturity
Bond Price as % of face value
Current
One-day change
Issuer
Symbol
Coupon (%)
Terex
Charter Communications Operating
Springleaf Finance
Nielsen Luxembourg Sarl
TEX
CHTR
AMGFIN
NLSN
5.625
5.375
6.125
5.000
Feb. 1, ’25
May 1, ’47
May 15, ’22
Feb. 1, ’25
104.750
102.957
104.000
104.125
California Resources
Jones Energy Holdings
Tesla
Denbury Resources
CRC
JONE
TSLA
DNR
8.000
6.750
5.300
9.000
Dec. 15, ’22
April 1, ’22
Aug. 15, ’25
May 15, ’21
79.155
75.063
96.530
102.000
1.25
1.15
0.88
0.75
Last week
Stock Performance
Close ($)
% chg
104.500
103.371
103.470
103.720
48.38
…
...
…
–0.27
…
...
…
0.66
0.56
0.53
0.38
77.000
73.500
96.500
100.938
17.94
1.02
317.29
2.12
5.04
10.87
–2.43
5.47
–0.85
–0.76
–0.75
–0.50
98.750
77.500
60.250
106.969
15.72
…
...
89.14
–0.76
…
...
0.06
96.000
108.125
89.750
101.500
317.29
446.70
...
9.40
–2.43
0.02
...
–2.59
…And with the biggest price decreases
Mattel
Endo Finance
PetSmart
HCA Healthcare
MAT
ENDP
PETM
HCA
2.350
May 6, ’19
5.375 Jan. 15, ’23
7.125 March 15, ’23
6.250 Feb. 15, ’21
98.682
77.620
58.500
106.500
Tesla
Equinix
Valeant Pharmaceuticals International
Kindred Healthcare
TSLA
EQIX
VRXCN
KND
5.300
5.875
6.125
6.375
95.500
107.625
91.750
102.000
Aug. 15, ’25
Jan. 15, ’26
April 15, ’25
April 15, ’22
–0.50
–0.38
–0.38
–0.25
*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.
Wednesday, December 27, 2017 | B9
BIGGEST 1,000 STOCKS
WSJ.com/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
Stock
Stock
Net
Sym Close Chg
A B C
s
s
s
s
s
s
s
s
s
s
s
ABB
ABB 26.66
AECOM
ACM 37.46
AES
AES 10.64
Aflac
AFL 87.64
AGNC Invt
AGNC 20.22
Ansys
ANSS 146.39
ASML
ASML 173.09
AT&T
T
39.06
AbbottLabs ABT 57.00
AbbVie
ABBV 97.75
Abiomed
ABMD 189.54
Accenture
ACN 152.99
ActivisionBliz ATVI 63.45
AcuityBrands AYI 176.08
Adient
ADNT 78.78
AdobeSystems ADBE 174.44
AdvanceAuto AAP 101.96
AdvMicroDevices AMD 10.46
AdvSemiEngg ASX
6.32
Aegon
AEG
6.22
AerCap
AER 52.84
Aetna
AET 180.42
AffiliatedMgrs AMG 204.06
AgilentTechs A
67.25
AgnicoEagle AEM 46.02
Agrium
AGU 113.50
AirProducts APD 163.00
AkamaiTech AKAM 65.42
AlaskaAir
ALK 74.84
Albemarle
ALB 129.04
Alcoa
AA
50.38
AlexandriaRlEst ARE 130.39
AlexionPharm ALXN 119.22
Alibaba
BABA 172.33
AlignTech
ALGN 223.54
Alkermes
ALKS 53.71
Alleghany
Y
590.51
Allegion
ALLE 80.39
Allergan
AGN 164.44
AllianceData ADS 250.64
AlliantEnergy LNT 42.19
AllisonTransm ALSN 43.33
Allstate
ALL 104.34
AllyFinancial ALLY 29.27
AlnylamPharm ALNY 124.68
Alphabet A GOOGL 1065.85
Alphabet C GOOG 1056.74
Altaba
AABA 69.86
AlticeUSA
ATUS 20.90
Altria
MO 72.08
AlumofChina ACH 17.72
Amazon.com AMZN 1176.76
Ambev
ABEV 6.35
Amdocs
DOX 65.63
Amerco
UHAL 380.60
Ameren
AEE 58.30
AmericaMovil A AMOV 16.80
AmericaMovil AMX 17.00
AmerAirlines AAL 52.85
AEP
AEP 72.99
AmerExpress AXP 98.57
AmericanFin AFG 108.67
AmerHomes4Rent AMH 21.80
AIG
AIG 59.43
AmerTowerREIT AMT 140.91
AmerWaterWorks AWK 90.42
Ameriprise AMP 171.10
AmerisourceBrgn ABC 93.25
Ametek
AME 72.54
Amgen
AMGN 176.09
Amphenol
APH 87.79
AnadarkoPetrol APC 54.10
AnalogDevices ADI 88.63
Andeavor
ANDV 114.30
AndeavorLog ANDX 46.43
AB InBev
BUD 111.41
AnnalyCap
NLY 12.08
AnteroResources AR
19.13
Anthem
ANTM 225.43
Aon
AON 133.30
Apache
APA 43.36
ApartmtInv AIV 43.33
ApolloGlbMgmt APO 33.64
Apple
AAPL 170.57
ApplMaterials AMAT 51.05
Aptiv
APTV 84.88
AquaAmerica WTR 38.80
Aramark
ARMK 42.67
ArcelorMittal MT
32.96
ArchCapital ACGL 90.27
ArcherDaniels ADM 40.26
Arconic
ARNC 27.07
AristaNetworks ANET 235.66
ArrowElec
ARW 79.78
AstraZeneca AZN 33.65
Athene
ATH 51.75
Atlassian
TEAM 46.49
AtmosEnergy ATO 84.60
Autodesk
ADSK 103.80
Autohome
ATHM 64.16
Autoliv
ALV 127.45
ADP
ADP 117.57
AutoZone
AZO 714.48
Avalonbay
AVB 178.99
Avangrid
AGR 50.37
AveryDennison AVY 114.82
AxaltaCoating AXTA 32.11
BB&T
BBT 50.04
BCE
BCE 47.61
BHPBilliton BHP 45.35
BHPBilliton BBL 39.69
BOK Fin
BOKF 92.01
BP
BP
41.69
BRF
BRFS 11.12
BT Group
BT
18.28
BWX Tech
BWXT 60.21
Baidu
BIDU 237.83
BakerHughes BHGE 32.06
Ball
BLL 37.60
BancoBilbaoViz BBVA 8.60
BancodeChile BCH 96.32
BancoMacro BMA 116.95
BcoSantChile BSAC 31.07
BancoSantander SAN
6.61
BanColombia CIB
40.20
BankofAmerica BAC 29.78
BankofMontreal BMO 79.24
BankNY Mellon BK
53.81
0.06
0.18
-0.07
0.43
...
-0.27
-2.13
0.12
0.07
-0.46
-2.10
-0.90
-1.06
3.90
-0.91
-0.56
1.41
-0.08
-0.15
-0.01
-0.22
0.46
-0.14
-0.10
0.70
0.52
-0.42
-0.03
0.56
-0.25
0.39
0.93
0.44
-3.96
0.42
0.67
0.65
0.05
-0.46
-1.35
-0.31
0.18
0.23
0.02
0.72
-3.01
-3.38
-1.72
-0.11
-0.06
-0.12
8.40
0.08
-0.11
1.33
-0.39
0.02
0.04
0.26
-0.66
-0.17
0.31
0.02
0.12
0.25
-0.09
-0.41
0.79
-0.06
-0.33
-0.35
1.17
-0.22
2.12
-0.01
-0.15
0.03
0.54
-0.17
-0.05
0.45
0.14
-0.37
-4.44
-1.01
0.09
0.28
-0.13
0.24
0.56
0.07
0.24
-0.89
-0.62
0.04
-0.07
0.23
-0.49
-0.09
-0.81
-0.27
0.69
4.39
0.87
-0.61
0.65
0.12
-0.41
0.14
0.35
0.31
-0.90
0.40
0.26
0.02
-0.62
-1.22
-0.17
-0.37
...
2.68
-0.16
-0.01
...
0.57
-0.10
0.02
-0.19
s
s
s
s
s
s
s
s
s
s
s
s
s
s
s
s
s
Net
Sym Close Chg
s
BkNovaScotia BNS 64.71 0.01
BankofOzarks OZRK 48.84 -0.60
Barclays
BCS 10.81 -0.04
Bard CR
BCR 333.41 1.13
BarrickGold ABX 14.57 0.10
BaxterIntl
BAX 65.02 0.30
BectonDicknsn BDX 217.02 -0.21
Berkley
WRB 70.90
...
BerkHathwy A BRK.A 296370 -30.30
BerkHathwy B BRK.B 197.57 -0.35
BerryGlobal BERY 58.42 -0.83
BestBuy
BBY 68.02 0.91
Bio-RadLab A BIO 242.04 -2.15
Biogen
BIIB 319.78 0.28
BioMarinPharm BMRN 90.82 0.36
Bioverativ
BIVV 54.35 0.31
BlackKnight BKI
44.10 -0.15
BlackBerry
BB
11.28 -0.32
BlackRock
BLK 513.72 1.60
Blackstone
BX
32.33 -0.43
BlueBuffaloPet BUFF 32.55 0.04
bluebirdbio BLUE 181.10 1.55
Boeing
BA 295.36 0.26
BorgWarner BWA 51.49 -0.22
BostonProps BXP 128.49 1.15
BostonSci
BSX 25.13 0.03
Braskem
BAK 26.45 0.20
BrightHorizons BFAM 94.34 -0.14
BrighthouseFin BHF 59.69 0.15
Bristol-Myers BMY 61.26 0.30
BritishAmTob BTI
66.38 -0.22
Broadcom
AVGO 258.10 -4.25
BroadridgeFinl BR
90.86 -0.09
BrookfieldMgt BAM 42.99 0.08
BrookfieldInfr BIP
44.00 0.10
Brown&Brown BRO 51.44 0.33
Brown-Forman B BF.B 68.50 0.71
Brown-Forman A BF.A 66.94 0.11
BuckeyePtrs BPL 48.00 -0.24
Bunge
BG
67.17 0.43
BurlingtonStrs BURL 121.35 1.24
CA
CA
33.65 0.13
CBD Pao
CBD 22.96 0.82
CBRE Group CBG 43.56 0.19
CBS B
CBS 60.19 0.02
CBS A
CBS.A 60.13 -0.57
CDK Global CDK 71.33 -0.01
CDW
CDW 68.99 -0.21
CF Industries CF
42.85 1.14
CGI Group
GIB
54.10 -0.05
CH Robinson CHRW 88.79 0.09
CIT Group
CIT
49.98 -0.37
CME Group CME 148.94 -0.04
CMS Energy CMS 46.81 -0.54
CNA Fin
CNA 52.50 0.34
CNOOC
CEO 143.50 1.29
CRH
CRH 35.91 0.24
CSX
CSX 54.87 -0.13
CVS Health CVS 73.68 0.27
CabotOil
COG 28.10 0.51
CadenceDesign CDNS 41.97 -0.29
CaesarsEnt CZR 12.35 -0.20
CalAtlantic
CAA 57.00 -0.10
CamdenProperty CPT 91.15 0.24
CampbellSoup CPB 48.29 -0.48
CIBC
CM
96.66 -0.11
CanNtlRlwy CNI
81.39 -0.33
CanNaturalRes CNQ 35.73 0.98
CanPacRlwy CP 181.95 -0.24
Canon
CAJ 38.61 0.15
CapitalOne COF 99.92 -0.58
CardinalHealth CAH 62.67 0.18
Carlisle
CSL 113.29 -0.22
Carlyle
CG
22.80 0.15
CarMax
KMX 65.55 0.32
Carnival
CCL 65.69 -0.66
Carnival
CUK 65.43 -0.63
Caterpillar
CAT 156.44 0.69
Cavium
CAVM 84.43 -0.42
CboeGlobalMkts CBOE 124.04 -0.43
Celanese A CE 106.44 -0.10
Celgene
CELG 106.97 0.64
Cemex
CX
7.49 0.04
CenovusEnergy CVE
8.92 0.14
Centene
CNC 102.26 0.10
CenterPointEner CNP 28.03 -0.04
CentraisElBras EBR
5.65 -0.08
CenturyLink CTL 17.36 0.12
Cerner
CERN 67.68 0.30
CharterComms CHTR 340.40 2.20
CheckPoint CHKP 102.70 0.78
Chemours
CC
49.72 0.70
CheniereEnergy LNG 54.13 1.13
CheniereEnerPtrs CQP 28.75 0.51
CheniereEnHldgs CQH 27.93 0.41
Chevron
CVX 125.98 1.00
ChinaEastrnAir CEA 35.55 0.15
ChinaLifeIns LFC 15.77 0.01
ChinaLodging HTHT 140.70 2.63
ChinaMobile CHL 49.96 0.20
ChinaPetrol SNP 74.06 0.63
ChinaSoAirlines ZNH 54.52 1.64
ChinaTelecom CHA 47.95 -0.11
ChinaUnicom CHU 13.53 0.02
Chipotle
CMG 295.52 0.29
Chubb
CB 145.31 0.11
ChunghwaTel CHT 35.22 -0.04
Church&Dwight CHD 50.16 0.11
Cigna
CI
203.78 0.39
CimarexEnergy XEC 122.18 2.23
CincinnatiFin CINF 74.27 0.28
Cintas
CTAS 155.52 -1.33
CiscoSystems CSCO 38.48 -0.07
Citigroup
C
74.78 -0.71
CitizensFin CFG 42.52 -0.11
CitrixSystems CTXS 87.93 0.05
Clorox
CLX 149.69 0.17
Coca-Cola
KO
45.81 0.22
Coca-Cola Euro CCE 39.29 -0.11
Coca-Cola Femsa KOF 67.96
...
Cognex
CGNX 61.08 -0.81
CognizantTech CTSH 71.24 -0.46
Coherent
COHR 284.20 -11.01
ColgatePalm CL
75.48 0.33
ColonyNorthStar CLNS 11.68 -0.07
Comcast A CMCSA 40.82 0.04
Comerica
CMA 87.33 -0.41
CommerceBcshrs CBSH 56.39 -0.36
CommScope COMM 38.04 -0.27
SABESP
SBS 10.39 0.18
ConagraBrands CAG 38.21 0.13
ConchoRscs CXO 153.92 2.15
Net
Sym Close Chg
Stock
s ConocoPhillips COP 56.23
ConEd
ED
84.20
ConstBrands A STZ 225.51
ContinentalRscs CLR 53.41
Cooper
COO 220.44
Copart
CPRT 43.34
Corning
GLW 32.38
CoStar
CSGP 294.86
Costco
COST 186.55
Coty
COTY 20.15
Credicorp
BAP 206.33
CreditAcceptance CACC 327.10
CreditSuisse CS
17.90
CrownCastle CCI 108.97
CrownHoldings CCK 55.92
Ctrip.com
CTRP 44.30
Cullen/Frost CFR 95.68
Cummins
CMI 176.14
0.73
-0.55
1.70
1.51
0.64
-0.01
...
-4.93
-0.08
0.22
-0.51
2.07
-0.06
0.42
-0.23
-0.85
-0.77
0.38
D E F
s
s
s
s
s
s
s
s
s
s
s
s
DISH Network DISH 48.34
DTE Energy DTE 108.13
DXC Tech
DXC 95.90
Danaher
DHR 93.32
Darden
DRI 97.15
DaVita
DVA 72.10
Deere
DE 158.75
DellTechs
DVMT 81.38
DeltaAir
DAL 56.43
DentsplySirona XRAY 66.26
DeutscheBank DB
19.23
DevonEnergy DVN 42.58
Diageo
DEO 143.39
DiamondbkEner FANG 125.97
DigitalRealty DLR 111.59
DiscoverFinSvcs DFS 77.26
DiscovComm C DISCK 22.30
DiscovComm B DISCB 24.80
DiscovComm A DISCA 23.57
Disney
DIS 108.12
DolbyLab
DLB 61.87
DollarGeneral DG
92.48
DollarTree
DLTR 108.50
DominionEner D
80.33
Domino's
DPZ 190.37
Donaldson
DCI
48.76
DouglasEmmett DEI
41.03
Dover
DOV 101.12
DowDuPont DWDP 71.44
DrPepperSnap DPS 96.33
DrReddy'sLab RDY 36.54
DukeEnergy DUK 83.60
DukeRealty DRE 26.92
Dunkin'
DNKN 65.26
ENI
E
33.43
EOG Rscs
EOG 109.41
EQT
EQT 55.45
E*TRADE
ETFC 49.50
EXACT Sci
EXAS 52.34
EastWestBncp EWBC 61.00
EastmanChem EMN 92.98
Eaton
ETN 77.32
EatonVance EV
56.28
eBay
EBAY 37.94
Ecolab
ECL 133.70
Ecopetrol
EC
14.21
EdisonInt
EIX
64.04
EdwardsLife EW 112.16
ElectronicArts EA 105.06
EmersonElec EMR 69.53
EnbridgeEnPtrs EEP 13.98
Enbridge
ENB 38.80
Encana
ECA 13.11
EnelAmericas ENIA 10.87
EnelGenChile EOCC 26.46
EnergyTransferEq ETE 17.04
EnergyTransfer ETP 17.91
Entergy
ETR 79.90
EnterpriseProd EPD 26.57
Equifax
EFX 118.98
Equinix
EQIX 446.70
EquityLife
ELS 88.40
EquityResdntl EQR 64.10
Ericsson
ERIC 6.61
EssexProp
ESS 240.56
EsteeLauder EL 128.85
EverestRe
RE 219.73
EversourceEner ES
61.96
Exelixis
EXEL 30.41
Exelon
EXC 38.81
Expedia
EXPE 119.44
ExpeditorsIntl EXPD 64.86
ExpressScripts ESRX 74.99
ExtraSpaceSt EXR 86.80
ExxonMobil XOM 83.98
F5Networks FFIV 131.26
FMC
FMC 95.54
Facebook
FB 175.99
FactSet
FDS 191.08
Fastenal
FAST 54.13
FederalRealty FRT 132.02
FedEx
FDX 249.64
Ferrari
RACE 106.98
FiatChrysler FCAU 18.50
FibriaCelulose FBR 14.37
FidNatlFin
FNF 39.29
FidNatlInfo FIS
94.13
FifthThirdBncp FITB 30.68
58.com
WUBA 70.09
FirstAmerFin FAF 56.37
FirstData
FDC 16.55
FirstRepBank FRC 86.83
FirstSolar
FSLR 68.04
FirstEnergy FE
30.32
Fiserv
FISV 131.40
FleetCorTech FLT 191.34
Flex
FLEX 17.70
FlirSystems FLIR 46.82
Fluor
FLR 51.45
FomentoEconMex FMX 90.48
FordMotor
F
12.60
ForestCIty A FCE.A 24.03
Fortinet
FTNT 44.16
Fortis
FTS 35.90
Fortive
FTV 72.62
FortBrandsHome FBHS 68.94
Franco-Nevada FNV 78.94
FranklinRscs BEN 43.57
FreeportMcM FCX 18.67
FreseniusMed FMS 52.32
-0.19
-0.59
0.01
-0.14
0.75
0.12
1.22
-0.70
0.40
0.44
-0.15
1.01
0.11
1.60
0.61
0.13
-0.17
-2.00
-0.16
-0.55
-0.38
-0.43
-0.96
-0.11
-2.50
0.04
0.41
0.66
-0.67
0.21
0.38
-0.57
0.06
0.45
0.19
2.30
0.68
-0.21
0.32
-0.81
0.33
-0.19
-0.15
0.18
-0.27
0.38
-1.19
-0.33
-0.96
-0.13
0.17
0.17
0.51
0.20
0.16
0.19
0.25
-0.41
0.17
-0.75
0.10
0.12
0.30
-0.03
1.17
1.10
0.78
-0.41
0.94
-0.20
-0.74
0.09
0.46
0.68
0.01
-1.11
0.08
-1.21
-1.03
0.08
1.63
-0.38
0.44
0.06
0.02
0.22
-0.19
-0.16
-0.29
-0.18
-0.07
-0.37
-0.81
-0.16
1.08
0.88
-0.27
-0.54
0.38
-0.56
0.02
0.11
0.24
-0.14
0.15
0.41
0.44
-0.34
0.57
-0.03
New Highs and Lows | WSJ.com/newhighs
Tuesday, December 26, 2017
Stock
52-Wk %
Sym Hi/Lo Chg Stock
Highs
ASV
ASV
Abercrombie&Fitch ANF
AcceleronPharma XLRN
Acushnet
GOLF
Agrium
AGU
AirLease
AL
Alcoa
AA
AlonUSAPartners ALDW
AmerEagle
AEO
AmericanFin
AFG
AmericanNatlIns ANAT
AmpioPharm
AMPE
AnaptysBio
ANAB
Andeavor
ANDV
AndinaAcqnIIWt ANDAW
AnworthMtgPfdA ANHpC
ApellisPharm
APLS
ApolloGlbMgmt APO
Appian
APPN
AptoseBiosci
APTO
AquaAmerica
WTR
ArcelorMittal
MT
ArchCoal
ARCH
ArenaPharm
ARNA
AshfordHospPfdH AHTpH
AshfordHospPfdI AHTpI
AtlasFinNt2022 AFHBL
AuburnNatlBncp AUBN
AveXis
AVXS
BBVABancoFr
BFR
BHPBilliton
BHP
BHPBilliton
BBL
BMC Stock
BMCH
BP Midstream
BPMP
BP
BP
BRT Apartments BRT
BancodeChile
BCH
BankofAmPfdCC BACpC
BankofAmPfdEE BACpA
BestBuy
BBY
BlueBuffaloPet BUFF
BluegreenVac
BXG
BobEvansFarms BOBE
BootBarn
BOOT
BostonBeer
SAM
BostonOmaha
BOMN
BoydGaming
BYD
Brown-Forman B BF.B
9.98
19.11
43.19
21.48
114.76
48.20
50.50
17.20
19.48
109.32
134.03
3.55
100.54
114.46
1.51
25.49
19.55
34.03
30.23
2.58
39.37
33.01
92.49
33.32
25.30
24.99
27.87
41.75
114.28
25.58
45.53
39.83
25.20
19.72
41.77
11.50
97.55
27.49
27.32
68.06
32.89
17.60
79.05
17.56
196.90
35.16
35.96
68.65
7.3
4.6
1.4
0.2
0.5
0.6
0.8
3.4
2.8
0.3
-1.3
21.5
1.5
1.9
-1.3
0.1
1.6
-1.1
5.6
29.8
0.7
0.7
1.3
4.9
0.3
...
5.2
2.9
2.2
-1.3
0.8
0.8
1.6
2.2
1.0
1.4
2.9
0.4
0.8
1.4
0.1
6.9
...
3.5
1.7
8.5
0.8
1.0
52-Wk %
Sym Hi/Lo Chg Stock
Buckle
BKE
BuildersFirstSrc BLDR
BurlingtonStrs
BURL
CBTX
CBTX
CF Industries
CF
CH Robinson
CHRW
CNH Indl
CNHI
CNOOC
CEO
CONSOL Energy CEIX
CVR Energy
CVI
CVR Refining
CVRR
CadenceBancorp CADE
CAE
CAE
CalAtlantic
CAA
Caleres
CAL
CanadaGoose
GOOS
CanPacRlwy
CP
CapSouthwstNts CSWCL
CasaSystems
CASA
CasellaWaste
CWST
Caterpillar
CAT
ChembioDiagn
CEMI
CheniereEnergy LNG
CheniereEnHldgs CQH
CherryHillPfdA
CHMIpA
Chevron
CVX
Children'sPlace PLCE
ChinaEastrnAir CEA
ChinaSoAirlines ZNH
ClementiaPharm CMTA
Clorox
CLX
Cohbar
CWBR
ColonyBankcorp CBAN
ColumbiaSportswr COLM
Comcast DECS CCZ
ConchoRscs
CXO
ConocoPhillips
COP
ConsumersEnerPf CMSpB
CorEnergyInfr
CORR
Cosan
CZZ
Cowen7.35%Nts COWNZ
Crocs
CROX
DASAN Zhone DZSI
Daseke
DSKE
DasekeWt
DSKEW
DaVita
DVA
Deere
DE
DelekUS
DK
DiamondbkEner FANG
DiscoverFinSvcs DFS
Domtar
UFS
25.00
21.78
121.87
29.86
43.04
89.72
13.64
143.50
38.80
38.00
16.42
27.07
18.59
57.44
34.34
30.88
182.99
26.75
15.93
22.28
156.98
8.30
54.22
27.96
25.82
126.14
146.75
36.61
56.23
20.15
150.40
6.15
14.75
72.53
64.00
155.05
56.37
105.95
38.90
10.25
25.50
13.34
9.49
14.34
2.00
72.61
158.76
35.16
127.45
77.52
50.20
3.1
2.0
1.0
0.6
2.7
0.1
0.4
0.9
7.4
2.6
8.4
-0.7
-0.2
-0.2
1.6
3.4
-0.1
0.6
4.2
1.9
0.4
6.4
2.1
1.5
0.3
0.8
1.8
0.4
3.1
-1.2
0.1
...
0.7
0.5
2.0
1.4
1.3
2.1
2.2
3.5
0.6
1.3
4.5
0.7
5.3
0.2
0.8
3.0
1.3
0.2
...
s
s
s
s
s
GGP
GGP 23.48
Gallagher
AJG 62.91
Gaming&Leisure GLPI 36.60
Gap
GPS 34.94
GardnerDenver GDI 34.03
Garmin
GRMN 59.27
Gartner
IT
123.09
Gazit-Globe GZT 10.21
GeneralDynamics GD 201.97
GeneralElec GE
17.43
GeneralMills GIS
60.12
GeneralMotors GM
41.80
Genpact
G
32.27
Gentex
GNTX 20.95
GenuineParts GPC 95.39
Gerdau
GGB
3.73
Gildan
GIL
32.39
GileadSciences GILD 72.70
GSK
GSK 35.37
GlobalPayments GPN 100.73
GoDaddy
GDDY 50.00
Goldcorp
GG
12.72
GoldmanSachs GS 257.72
Goodyear
GT
32.60
Graco
GGG 134.46
Grainger
GWW 236.01
GreatPlainsEner GXP 31.98
Grifols
GRFS 22.41
GrubHub
GRUB 72.22
GpoAvalAcc AVAL 8.76
GpoFinGalicia GGAL 65.46
GpFinSantMex BSMX 7.12
GrupoTelevisa TV
18.77
HCA Healthcare HCA 89.14
HCP
HCP 25.95
HDFC Bank HDB 100.53
HD Supply
HDS 39.52
HP
HPQ 21.23
HSBC
HSBC 51.52
Halliburton HAL 48.77
Hanesbrands HBI 20.91
HarleyDavidson HOG 51.77
Harris
HRS 142.20
HartfordFinl HIG 55.97
Hasbro
HAS 92.80
HealthcareAmer HTA 29.96
Heico A
HEI.A 78.60
Heico
HEI
94.13
Helm&Payne HP
65.61
HenrySchein HSIC 70.62
Herbalife
HLF 70.59
Hershey
HSY 115.01
Hess
HES 48.46
HewlettPackard HPE 14.74
Hilton
HLT 79.37
HollyFrontier HFC 51.30
Hologic
HOLX 43.23
HomeDepot HD 190.36
HondaMotor HMC 34.40
Honeywell
HON 153.76
HormelFoods HRL 36.74
DR Horton
DHI 50.97
HostHotels HST 20.18
HuanengPower HNP 25.15
Hubbell
HUBB 137.50
Humana
HUM 246.25
JBHunt
JBHT 114.92
HuntingtonBcshs HBAN 14.63
HuntingIngalls HII 236.80
Huntsman
HUN 33.35
HyattHotels H
72.71
IAC/InterActive IAC 124.31
ICICI Bank
IBN
9.81
IdexxLab
IDXX 157.07
IHSMarkit
INFO 45.00
ING Groep
ING 18.49
Invesco
IVZ
36.60
IPG Photonics IPGP 213.18
IQVIA
IQV 98.35
IRSA Prop
IRCP 56.26
IcahnEnterprises IEP
53.00
Icon
ICLR 113.36
IDEX
IEX 132.02
IllinoisToolWks ITW 167.10
Illumina
ILMN 214.21
ImperialOil
IMO 30.43
Incyte
INCY 95.40
Infosys
INFY 16.21
Ingersoll-Rand IR
89.21
Ingredion
INGR 140.35
Intel
INTC 46.08
InteractiveBrkrs IBKR 60.16
ICE
ICE
70.04
InterContinentl IHG 62.81
IBM
IBM 152.83
IntlFlavors
IFF 152.24
IntlPaper
IP
57.49
Interpublic
IPG
20.23
Intuit
INTU 158.93
IntuitiveSurgical ISRG 365.83
InvitatHomes INVH 23.37
IonisPharma IONS 50.73
IronMountain IRM 37.66
IsraelChemicals ICL
4.07
ItauUnibanco ITUB 12.90
52-Wk %
Sym Hi/Lo Chg
Dover
DOV
DriveShackPfdB DSpB
DuPont pfA
DDpA
DynexCapPfdB DXpB
ENDRA LifeWt NDRAW
ENDRA LifeSci NDRA
EOG Rscs
EOG
Ecopetrol
EC
EducDev
EDUC
eGain
EGAN
EigerBioPharma EIGR
ElectrumSpec
ELEC
EnantaPharma ENTA
EnPro
NPO
EquitableFin
EQFN
EstreAmbiental ESTR
ExpressScripts ESRX
FMC
FMC
FSB Bancorp
FSBC
FateTherap
FATE
FedRealtyInvPfdC FRTpC
FederatedInvest FII
FiatChrysler
FCAU
FidelityD&D
FDBC
FiveBelow
FIVE
FreeportMcM
FCX
FreseniusMed
FMS
GRAVITY
GRVY
GWPharm
GWPH
Gap
GPS
GasLog
GLOG
GeoPark
GPRK
GeorgiaPwrNt77 GPJA
GigCapital
GIG.U
GIIIApparel
GIII
GolarLNG PfdA GMLPP
GolarLNG
GLNG
Greenbrier
GBX
HFF
HF
HanoverIns
THG
HeronTherap
HRTX
Hilton
HLT
HoeghLNG PfdA HMLPpA
HollyFrontier
HFC
HomeDepot
HD
HowardHughes HHC
Hubbell
HUBB
HudsonGlobal
HSON
JBHunt
JBHT
HutchisonChina HCM
IONGeophysical IO
101.63
26.49
96.65
25.16
2.00
5.88
109.66
14.22
19.00
5.25
14.35
10.32
59.34
94.57
10.65
11.01
75.64
96.02
17.75
6.36
25.43
36.65
18.56
44.99
68.98
18.79
52.52
96.44
140.52
35.24
21.85
10.25
26.00
10.10
38.00
25.75
30.06
53.70
47.66
108.91
19.55
79.96
26.55
51.31
190.42
132.60
138.96
2.40
115.74
37.52
20.40
0.7
1.0
0.5
0.6
26.1
27.1
2.1
2.7
0.3
10.6
7.6
0.4
1.8
-0.2
-0.9
-11.9
0.6
0.1
1.8
11.9
0.5
0.5
0.3
4.7
3.0
3.1
-0.1
3.0
2.3
1.5
1.9
3.2
...
1.0
0.9
...
2.1
1.3
2.8
0.1
2.7
...
0.5
1.3
1.2
1.7
1.7
8.8
0.3
-4.5
3.6
0.08
0.31
0.09
0.50
-0.17
0.09
-0.50
-0.07
-0.67
0.05
-0.01
-0.22
-0.03
0.06
0.28
0.02
0.06
-0.01
0.24
0.37
0.13
0.14
-1.25
-0.25
-0.13
1.17
-0.09
...
0.48
0.07
-0.01
-0.02
-0.15
0.05
0.28
-0.30
0.15
-0.03
-0.14
0.76
0.50
-0.07
-0.58
0.42
-0.75
0.16
0.25
0.41
1.29
-0.39
1.00
0.06
1.45
0.03
0.02
0.68
-0.14
2.23
0.10
0.27
0.01
0.14
0.04
-0.31
2.27
1.25
0.39
-0.15
-0.64
0.25
-0.25
-2.66
0.02
-0.58
-0.05
0.02
-0.04
0.06
-1.03
0.25
0.10
-0.23
-0.05
-0.03
-1.51
0.24
-0.41
0.11
-0.56
-0.22
-0.62
-0.16
-0.21
-0.21
0.33
-0.27
-0.49
-0.16
0.43
2.67
0.07
-0.13
...
0.04
0.06
s
s
s
s
JD.com
JD
42.14
JPMorganChase JPM 107.02
JackHenry
JKHY 116.83
JacobsEngg JEC 66.05
JamesHardie JHX 17.31
JanusHenderson JHG 38.45
JazzPharma JAZZ 135.27
JetBlue
JBLU 22.58
J&J
JNJ 140.09
JohnsonControls JCI
37.90
JonesLang
JLL 150.02
JuniperNetworks JNPR 28.86
KAR Auction KAR 50.80
s KB Fin
KB
58.59
KKR
KKR 20.99
KLA Tencor KLAC 107.65
KT
KT
15.73
KSCitySouthern KSU 107.64
Kellogg
K
68.15
KeyCorp
KEY 20.33
KeysightTechs KEYS 41.60
KilroyRealty KRC 74.31
KimberlyClark KMB 121.31
KimcoRealty KIM 18.25
KinderMorgan KMI 18.11
s Knight-Swift KNX 44.14
s Kohl's
KSS 56.87
KoninklijkePhil PHG 37.94
KoreaElcPwr KEP 18.13
KraftHeinz
KHC 78.11
Kroger
KR
27.80
Kyocera
KYO 66.20
LATAMAirlines LTM 13.84
L Brands
LB
62.95
LG Display
LPL 13.55
LINE
LN
40.97
LKQ
LKQ 40.78
L3 Tech
LLL 197.33
LabCpAm
LH 161.04
LamResearch LRCX 184.31
LamarAdv
LAMR 73.84
LambWeston LW
55.18
LasVegasSands LVS 70.13
Lazard
LAZ 51.35
-0.05
-0.43
-0.01
-0.23
-0.16
-0.02
2.49
0.14
-0.03
-0.21
0.45
...
-0.22
0.65
-0.19
-1.67
0.08
-0.55
0.05
-0.11
-0.47
0.74
0.65
0.23
0.06
-0.21
3.21
-0.12
0.26
-0.13
-0.45
-1.32
0.12
1.59
-0.21
-0.28
-0.04
-0.37
0.32
-2.38
-0.05
-0.64
0.39
0.17
Net
Sym Close Chg
Lear
LEA 176.98
Leggett&Platt LEG 47.54
Leidos
LDOS 64.79
Lennar B
LEN.B 51.05
Lennar A
LEN 63.89
LennoxIntl
LII
207.60
LeucadiaNatl LUK 26.53
LibertyBroadbandC LBRDK 85.17
LibertyBroadbandA LBRDA 84.99
LibertyGlobal C LBTYK 33.84
LibertyGlobal A LBTYA 35.47
LibertyGlobal B LBTYB 35.55
LibertyLiLAC A LILA 21.39
LibertyLiLAC C LILAK 21.23
LibertyQVC B QVCB 25.73
LibertyQVC A QVCA 25.74
LibertyVenturesA LVNTA 55.96
LibertyFormOne A FWONA 32.55
LibertyFormOne C FWONK 34.18
LibertyBraves A BATRA 22.61
LibertyBraves C BATRK 22.74
LibertySirius A LSXMA 40.16
LibertySirius C LSXMK 39.95
LibertyProperty LPT 43.10
EliLilly
LLY
84.99
LincolnElectric LECO 91.45
LincolnNational LNC 77.49
LionsGate B LGF.B 31.26
LionsGate A LGF.A 33.35
LiveNationEnt LYV 42.41
LloydsBanking LYG
3.67
LockheedMartin LMT 318.51
Loews
L
49.92
LogitechIntl LOGI 33.65
LogMeIn
LOGM 114.20
Lowe's
LOW 91.89
lululemon
LULU 79.40
LyondellBasell LYB 109.93
M N
s
s
t
J K L
Stock
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE American
and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in the latest
session. % CHG-Daily percentage change from the previous trading session.
Stock
G H I
Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and
changes in the closing prices from 4 p.m. the previous day.
Tuesday, December 26, 2017
Net
Sym Close Chg
t
s
M&T Bank
MTB 171.99
MGM Resorts MGM 33.35
MPLX
MPLX 35.96
MSCI
MSCI 125.60
Macerich
MAC 65.73
Macy's
M
26.85
MagellanMid MMP 69.45
MagnaIntl
MGA 57.15
Manpower
MAN 126.32
ManulifeFin MFC 20.95
MarathonOil MRO 17.26
MarathonPetrol MPC 66.84
Markel
MKL 1133.91
MarketAxess MKTX 201.02
Marriott
MAR 133.30
Marsh&McLen MMC 80.74
MartinMarietta MLM 217.57
MarvellTech MRVL 21.84
Masco
MAS 44.02
Mastercard MA 151.28
MatchGroup MTCH 31.68
MaximIntProducts MXIM 52.70
McCormickVtg MKC.V 101.73
McCormick MKC 102.01
McDonalds MCD 171.29
McKesson
MCK 158.90
Medtronic
MDT 81.47
MelcoResorts MLCO 28.66
MercadoLibre MELI 318.49
Merck
MRK 56.34
MetLife
MET 50.67
MettlerToledo MTD 613.53
MichaelKors KORS 63.98
MicroFocus MFGP 33.10
MicrochipTech MCHP 88.63
MicronTech MU
42.25
Microsemi
MSCC 51.48
Microsoft
MSFT 85.40
MidAmApt MAA 100.15
Middleby
MIDD 132.79
MitsubishiUFJ MTU 7.35
MizuhoFin
MFG 3.66
MobileTeleSys MBT 10.56
MohawkInds MHK 276.45
MolsonCoors B TAP 81.82
Mondelez
MDLZ 43.42
Monsanto
MON 116.02
MonsterBev MNST 63.84
Moody's
MCO 145.87
MorganStanley MS
52.47
Mosaic
MOS 25.50
MotorolaSol MSI 90.67
Mylan
MYL 42.27
NRG Energy NRG 28.43
NTTDoCoMo DCM 23.79
NVR
NVR 3471.00
NXP Semi
NXPI 116.57
Nasdaq
NDAQ 76.13
NationalGrid NGG 57.87
NatlOilwell
NOV 35.62
NatlRetailProp NNN 42.58
NektarTherap NKTR 60.00
NetApp
NTAP 55.86
Netease
NTES 361.54
Netflix
NFLX 187.76
Neurocrine
NBIX 71.73
NewOrientalEduc EDU 92.46
NY CmntyBcp NYCB 13.20
NewellBrands NWL 30.92
NewfieldExpln NFX 32.19
NewmontMin NEM 37.57
NewsCorp B NWS 16.60
NewsCorp A NWSA 16.31
NextEraEnergy NEE 154.00
NielsenHoldings NLSN 36.21
Nike
NKE 63.65
NiSource
NI
25.06
NobleEnergy NBL 29.54
Nokia
NOK
4.78
NomuraHoldings NMR 5.83
Nordson
NDSN 144.82
Nordstrom
JWN 48.47
NorfolkSouthern NSC 144.60
NorthernTrust NTRS 98.70
NorthropGrum NOC 303.84
NorwegCruise NCLH 53.73
Novartis
NVS 83.11
NovoNordisk NVO 53.58
Nucor
NUE 64.73
NVIDIA
NVDA 197.44
O P Q
s
s
s
t
OGE Energy OGE 32.83
ONEOK
OKE 53.26
OReillyAuto ORLY 244.65
OccidentalPetrol OXY 73.54
OldDomFreight ODFL 132.60
Omnicom
OMC 73.35
ON Semi
ON
20.87
OpenText
OTEX 33.03
Oracle
ORCL 47.43
Orange
ORAN 17.42
OrbitalATK OA 131.60
Orix
IX
84.74
Oshkosh
OSK 91.34
OwensCorning OC
91.99
PG&E
PCG 44.45
PLDT
PHI
29.48
PNC Fin
PNC 144.90
POSCO
PKX 79.20
PPG Ind
PPG 116.28
PPL
PPL 30.76
PTC
PTC 60.06
52-Wk %
Sym Hi/Lo Chg Stock
Stock
PVH 136.52 0.92
-0.71 PVH
0.48 Paccar
PCAR 71.15 0.15
-0.43 PackagingCpAm PKG 120.10 0.01
0.13 PacWestBancorp PACW 49.75 -0.69
-0.11 PaloAltoNtwks PANW 146.19 0.04
1.95 ParkHotels
PK
29.25 -0.12
0.32 ParkerHannifin PH 198.94 -0.31
-0.02 ParsleyEnergy PE
30.45 0.91
-0.05 Paychex
PAYX 68.85 0.58
-0.04 PayPal
PYPL 74.27 0.38
-0.05 Pearson
PSO
9.73 0.03
0.85 PembinaPipeline PBA 35.89 0.41
0.34 Pentair
PNR 69.38 -0.35
0.33 People'sUtdFin PBCT 18.87 -0.04
-0.27 PepsiCo
PEP 118.89 0.29
-0.44 PerkinElmer PKI
73.05
...
-2.06 Perrigo
PRGO 87.93 0.92
-0.19 PetroChina
PTR 70.91 0.58
-0.19 PetroleoBrasil PBR 10.16 0.17
... PetroleoBrasilA PBR.A 9.68 0.21
... Pfizer
PFE 36.21 0.07
0.39 PhilipMorris PM 104.11 -0.54
0.35 s Phillips66
PSX 101.64 0.75
0.17 PilgrimPride PPC 31.53 0.11
-0.08 PinnacleFoods PF
59.47 -0.13
0.91 PinnacleWest PNW 84.29 -0.85
-0.26 PioneerNatRscs PXD 173.99 2.87
-0.02 PlainsAllAmPipe PAA 21.29 0.17
0.04 PlainsGP
PAGP 22.19 0.22
0.34 PolarisIndustries PII
126.64 1.42
0.01 s Potash
POT 20.28 0.11
0.48 Praxair
PX 152.61 -1.23
0.26 Priceline
PCLN 1755.32 -19.94
-0.25 PrincipalFin PFG 71.33 0.07
0.10 Procter&Gamble PG
92.48 0.35
0.70 Progressive PGR 56.22 0.13
0.92 Prologis
PLD 63.82 -0.01
-0.05 PrudentialFin PRU 115.65 -0.51
Prudential
PUK 50.11 0.11
PublicServiceEnt PEG 50.96 -0.11
PublicStorage PSA 208.03 2.06
-1.08
PulteGroup PHM 33.56 0.19
0.01
Qiagen
QGEN 31.16 -0.58
0.10
Qorvo
QRVO 65.90 -1.79
-2.73
Qualcomm
QCOM 64.30 -0.43
0.53
QuantaServices
PWR 39.50 0.09
1.18
QuestDiag
DGX 99.27 0.03
0.06
-0.22
-0.72
-0.05 RELX
RENX 22.89 -0.03
0.36 RELX
RELX 23.51 0.05
0.48 RPM
RPM 52.43 0.27
7.22 RSP Permian RSPP 40.88 0.71
-0.73 s RalphLauren RL
103.39 1.59
-0.67 RandgoldRscs GOLD 97.19 1.14
0.05 RaymondJames RJF
89.91 -0.73
6.47 Raytheon
RTN 187.46 0.15
-0.11 RealtyIncome O
56.23 0.38
0.19 RedHat
RHT 120.61 -2.31
0.43 RegencyCtrs REG 68.69 0.60
-0.23 RegenPharm REGN 387.43 6.43
-0.45 RegionsFin
RF
17.35 -0.12
-0.22 ReinsGrp
RGA 156.07 1.00
0.09 RelianceSteel RS
87.13 0.81
-0.13 RepublicSvcs RSG 66.77 -0.16
0.46 ResMed
RMD 85.59 0.48
-0.07 RestaurantBrands QSR 60.57 -0.71
0.20 s RioTinto
RIO 51.42 0.33
3.66 RobertHalf
RHI 55.31 -0.37
-0.02 Rockwell
ROK 194.53 -0.04
-0.09 RockwellCollins COL 134.93 -0.16
-1.24 RogersComm B RCI
50.57 0.14
0.58 Rollins
ROL 46.67 0.22
0.03 RoperTech
ROP 260.72 1.19
-0.29 s RossStores ROST 80.96 0.52
-1.87 RoyalBkCanada RY
80.39 -0.14
-0.71 RoyalBkScotland RBS
7.52 0.02
-0.11 RoyalCaribbean RCL 120.18 -0.88
0.40 s RoyalDutchA RDS.A 66.54 0.79
0.75 s RoyalDutchB RDS.B 67.80 0.57
-0.09 Ryanair
RYAAY 103.25 -1.06
-0.04 SAP
SAP 112.36 -0.22
0.14 S&P Global SPGI 167.42 -0.41
-0.01 SBA Comm SBAC 159.82 -0.40
0.72 SEI Investments SEIC 72.06 0.35
0.06 Sina
SINA 103.69 -0.57
-0.26 SINOPEC
SHI
58.13 -0.08
0.07 s SK Telecom SKM 28.65 0.40
-1.12 SLGreenRealty SLG 100.35 0.31
-0.25 SS&C Tech
SSNC 40.15 -0.29
-0.02 SVB Fin
SIVB 236.17 -5.53
-0.09 SageTherap SAGE 156.14 -9.75
0.22 Salesforce.com CRM 102.54 -0.09
0.27 Sanofi
SNY 42.86 -0.09
0.13 SantanderCons SC
18.48 0.03
-9.00 Sasol
SSL 32.90 0.48
-0.13 Schlumberger SLB 67.61 0.17
0.04 SchwabC
SCHW 51.87 -0.21
-0.04 ScottsMiracleGro SMG 102.97 0.42
0.18 ScrippsNetworks SNI
85.68 0.33
0.24 Seagate
STX 42.14 -0.03
2.01 SealedAir
SEE 49.14 0.05
-0.44 SeattleGenetics SGEN 53.59 0.16
-4.09 SemicondctrMfg SMI
7.90 0.02
-2.18 SempraEnergy SRE 107.94 -0.37
-0.10 SensataTech ST
50.89 -0.39
0.71 ServiceCorp SCI
37.01 -0.33
-0.08 ServiceMaster SERV 51.09 -0.27
0.25 ServiceNow NOW 129.32 0.13
0.73 ShawComm B SJR 23.00 0.20
0.65 SherwinWilliams SHW 411.39 -1.70
-0.20 ShinhanFin
SHG 46.74 -0.06
-0.11 Shire
SHPG 156.38 -0.44
-0.54 Shopify
SHOP 104.84 0.98
-0.33 SignatureBank SBNY 137.94 -1.17
0.36 SimonProperty SPG 169.36 2.29
-0.22
SiriusXM
SIRI
5.42 0.05
0.75 s
SkechersUSA SKX 38.66 0.34
...
Skyworks
SWKS 95.20 -1.87
-0.09
SmithAO
AOS 61.66 0.40
0.34
Smith&Nephew SNN 34.92 0.07
0.93
Smucker
SJM 125.27 0.05
0.08
Snap
SNAP 15.01 -0.14
-0.28
SnapOn
SNA 174.82 0.12
0.06
SOQUIMICH SQM 59.12 -0.52
-0.30
Sony
SNE 45.21 -0.47
0.16
Southern
SO
48.05 -0.45
0.17
SoCopper
SCCO 46.57 0.36
0.17
SouthwestAir LUV 65.98 0.01
2.17
SpectraEnerPtrs SEP 41.56 0.19
SpectrumBrands SPB 113.77 -0.34
s SpiritAeroSys SPR 86.78 0.06
SPLK 82.27 -0.48
-0.18 Splunk
S
5.79 0.15
0.05 Sprint
SQ
35.05 -0.09
2.15 Square
0.55 StanleyBlackDck SWK 167.81 0.35
SBUX 57.14 -0.16
-0.08 Starbucks
-0.26 StateStreet STT 97.44 -0.49
STO 21.29 0.26
0.01 s Statoil
0.27 s SteelDynamics STLD 43.68 0.42
STE 87.87 -0.26
0.07 Steris
... STMicroelec STM 21.70 -0.55
SYK 154.21 0.07
-0.54 Stryker
-0.91 SumitomoMits SMFG 8.70 -0.12
SunComms
SUI
92.36 0.34
-0.06
40.93 0.18
0.79 SunLifeFinancial SLF
35.52 0.38
-0.12 SuncorEnergy SU
65.29 -0.47
0.06 SunTrustBanks STI
SYMC 28.23 -0.09
-1.22 Symantec
0.63 SynchronyFin SYF 38.71 -0.06
SYT 92.77 0.08
0.09 Syngenta
SNPS 85.35 -0.47
-0.37 Synopsys
0.06 SynovusFin SNV 48.56 -0.39
4.59
104.00
20.43
34.89
10.10
11.16
11.20
51.72
81.13
66.55
67.85
85.60
28.76
45.87
71.03
5.27
35.00
18.22
3.75
3.55
13.93
75.94
67.94
38.92
21.02
87.61
21.31
43.84
26.74
47.35
30.00
18.10
64.50
12.50
26.98
105.54
8.66
445.00
105.42
70.10
10.10
31.82
135.76
171.83
18.08
42.17
20.91
18.95
127.94
35.86
76.15
12.11
92.05
16.65
4.35
24.00
31.98
141.19
4.97
0.2
1.6
1.2
0.6
...
-1.5
3.7
0.6
0.6
1.2
0.8
-0.4
1.4
0.1
-0.6
3.4
5.6
3.4
10.5
1.4
1.8
2.1
0.1
0.9
3.9
0.1
1.2
1.0
0.2
1.2
18.4
5.9
-0.2
2.5
-0.3
0.1
4.5
2.4
2.3
0.2
1.0
1.1
0.1
0.7
2.5
1.1
0.9
2.4
-0.1
2.6
1.0
1.3
0.8
3.5
2.5
3.6
...
-0.4
7.8
52-Wk %
Sym Hi/Lo Chg
105.85 0.8
WestlakeChem WLK
18.84 2.4
WildHorseResource WRD
1.50 6.7
WillScotWt
WSCWW
13.00 0.8
WillScot
WSC
31.90 1.5
WolverineWwide WWW
35.60 6.3
XOMA
XOMA
ZionsBancorpWt ZIONW 20.00 -0.6
Lows
AileronTherap
ALRN
Alexander&Baldwin ALEX
AmiraNatureFoods ANFI
ApolloInv
AINV
AvenueTherap
ATXI
BankofAmPfdI
BACpI
BenchmarkElec BHE
CBL AssocPfdD CBLpD
ChesapeakeGranite CHKR
Cohbar
CWBR
Conifer
CNFR
Curis
CRIS
DenaliTherap
DNLI
EllingtonFin
EFC
EnerJexRscs
ENRJ
EstreAmbiental ESTR
Evogene
EVGN
Fabrinet
FN
FirstRepublicPfE FRCpE
Hexindai
HX
IDT
IDT
IMPAC Mortgage IMH
IconixBrand
ICON
InspireMD
NSPR
JAKKS Pacific
JAKK
MaidenHldg6.7%PfdD MHpD
MidatechPharma MTP
NationalGrid
NGG
Neonode
NEON
NeuroMetrixWt NUROW
NorwegCruise
NCLH
ObalonTherap
OBLN
OpGen
OPGN
Oragenics
OGEN
PHH
PHH
PPL
PPL
PacBiosciCA
PACB
RMG Networks RMGN
RealNetworks
RNWK
RestorationRob HAIR
RevolutionLight RVLT
SCE Tr VI 5% Pfd L SCEpL
SenesTech
SNES
SparkEnergy
SPKE
TiVo
TIVO
TrovaGene
TROV
US ShortOilFd
DNO
Welltower
HCN
YingliGreenEner YGE
ZosanoPharma ZSAN
8.77
27.55
4.02
5.66
3.45
25.00
29.00
21.85
1.75
4.80
5.30
0.74
15.02
14.49
0.21
9.00
2.66
28.45
25.92
10.80
10.11
9.93
1.28
0.12
2.30
20.76
0.89
57.65
0.73
0.02
53.65
6.72
0.16
0.23
10.19
30.75
2.52
0.75
3.65
3.96
3.12
22.69
0.56
10.90
13.95
0.24
56.98
63.15
1.69
0.54
1.8
-0.9
-4.9
-1.0
...
0.5
-1.0
0.2
...
...
-0.9
-1.0
-2.0
-0.2
-3.3
-11.9
-1.5
-2.7
-0.9
-1.8
1.3
0.1
-1.5
-3.5
-6.0
-2.3
-5.3
-0.1
-4.4
50.0
-0.6
-2.3
-5.7
-6.4
-0.5
-1.2
-2.2
-3.2
-5.2
-5.3
-2.5
-1.9
-10.9
-1.8
0.4
-1.6
-2.5
0.1
...
-9.3
Net
Sym Close Chg
Stock
Sysco
SYY
60.76
s
s
s
s
TAL Education TAL 29.43
TD Ameritrade AMTD 51.49
TE Connectivity TEL 95.26
Telus
TU
37.74
Ternium
TX
31.56
TIM Part
TSU 19.14
TJX
TJX 77.45
T-MobileUS TMUS 63.79
TRowePrice TROW 105.36
TaiwanSemi TSM 38.95
TakeTwoSoftware TTWO 108.25
Tapestry
TPR 44.95
TargaResources TRGP 47.31
Target
TGT 65.82
TataMotors TTM 32.98
TechnipFMC FTI
31.38
TeckRscsB
TECK 26.00
TelecomArgentina TEO 38.60
TelecomItalia TI
8.87
TelecomItalia A TI.A
8.38
TeledyneTech TDY 181.83
Teleflex
TFX 247.89
TelefonicaBras VIV 15.13
Telefonica
TEF
9.75
TelekmIndonesia TLK 31.48
Tenaris
TS
32.03
Teradyne
TER 42.12
Tesla
TSLA 317.29
TevaPharm TEVA 18.92
TexasInstruments TXN 104.15
Textron
TXT 56.88
ThermoFisherSci TMO 190.34
ThomsonReuters TRI
43.11
ThorIndustries THO 153.14
3M
MMM 235.45
Tiffany
TIF 105.20
TimeWarner TWX 91.65
Toll Bros
TOL 47.62
Torchmark
TMK 90.63
Toro
TTC 64.89
TorontoDomBk TD
57.16
Total
TOT 55.43
TotalSystem TSS 79.11
ToyotaMotor TM 127.98
TractorSupply TSCO 75.30
TransCanada TRP 48.58
TransDigm
TDG 273.11
TransUnion TRU 55.33
Travelers
TRV 134.78
Trimble
TRMB 40.35
TurkcellIletism TKC 10.06
TurquoiseHill TRQ
3.45
Net
Sym Close Chg
Stock
0.04
T U V
R S
52-Wk %
Sym Hi/Lo Chg Stock
14.90 1.7 R1RCM
Immunomedics IMMU
RCM
1.63 90.6 RalphLauren
IndiaGlblCap
IGC
RL
26.92 -7.8 RayonierAdvMatls RYAM
InflaRx
IFRX
27.26 5.6 RedRockResorts RRR
InnovativeIndProp IIPR
InnovativeIndPfdA IIPRpA 27.24 1.0 RegalwoodGlbUn RWGE.U
15.75 4.0 Remark
iRadimed
IRMD
MARK
16.55 2.8 ResoluteForest RFP
JaggedPeakEner JAG
2.64 -0.4 RioTinto
JasonIndustries JASN
RIO
59.09 1.1 RossStores
KB Fin
KB
ROST
69.87 10.0 RoyalDutchA
KLX
KLXI
RDS.A
21.30 -1.4 RoyalDutchB
KenonHoldings KEN
RDS.B
KimcoRealtyPfdM KIMpM 24.96 0.3 RyderSystem
R
15.21 2.1 SK Telecom
KirklandLakeGold KL
SKM
Knight-Swift
44.60 -0.5 SabineRoyalty
KNX
SBR
57.28 6.0 Saia
Kohl's
KSS
SAIA
9.75 3.2 SandstormGold SAND
Leaf
LFGR
9.68 0.2 SchnitzerSteel
LegacyAcqn
LGC
SCHN
64.42 -0.2 SelectEnergySvcs WTTR
Lennar A
LEN
26.79 -1.0 SierraOncology SRRA
LibertyQVC B
QVCB
LincolnNatlWt
LNC.WS 78.06 1.3 SimplyGoodFoodsWt SMPLW
92.08 0.8 SimplyGoodFoods SMPL
Lowe's
LOW
80.04 1.2 SiteOneLandscape SITE
lululemon
LULU
15.95 1.2
Luxfer
LXFR
SixFlags
SIX
25.78 -0.1
MVC CapNts22 MVCD
SkechersUSA
SKX
10.97 0.8
MVC Capital
MVC
SolarisOilfield
SOI
8.99 12.7
MV Oil
MVO
SpiritAeroSys
SPR
67.07 0.7
MarathonPetrol MPC
Statoil
STO
31.40 3.7
MatadorResources MTDR
SteelDynamics STLD
MedallionFinNts MFINL
26.00 2.6
SterlingBncpPfdA STLpA
60.85 2.2
Methanex
MEOH
StevenMadden SHOO
64.30 0.9
MichaelKors
KORS
StitchFix
SFIX
MillerHerman
39.60 2.9
MLHR
SucampoPharm SCMP
13.15 3.5
MiXTelematics MIXT
SunHydraulics
SNHY
50.40 0.6
Moelis
MC
SunCokeEnergy SXC
90.52 0.2
NICE
NICE
THLCreditNts22 TCRZ
2.89 6.3
NewYork
NWY
TRowePrice
TROW
17.02 0.3
NomadFoods
NOMD
TelecomItalia A TI.A
22.90 8.3
NorthernTechsIntl NTIC
TPL
53.70 0.3 TexasPacLand
NovoNordisk
NVO
TIF
25.77 0.9 Tiffany
NuSTAR PfdC
NSpC
Tucows
TCX
NuverraEnvl
22.50 13.9
NES
TKC
73.90 0.8 TurkcellIletism
OccidentalPetrol OXY
US
Foods
USFD
25.37 0.2
OdonateTherap ODT
UNP
21.40 0.7 UnionPacific
OldRepublic
ORI
UnitedRentals
URI
53.85 0.5
Ollie'sBargain
OLLI
BNO
12.75 3.3 USBrentOilFd
Ooma
OOMA
USComdtyIndxFd
USCI
92.10 0.9
OwensCorning
OC
75.64 0.8 USCopperIndex CPER
OxfordIndustries OXM
USDieselHeatingOil
UHN
35.35 0.8
PBF Energy
PBF
UTX
PGT Innovations PGTI
16.95 3.1 UnitedTech
79.53 0.8 UrbanOutfitters URBN
POSCO
PKX
USNA
39.15 1.7 UsanaHealth
PeabodyEnergy BTU
VALE
PerformanceFood PFGC
32.85 1.2 Vale
VLO
101.81 0.7 ValeroEnergy
Phillips66
PSX
VRS
7.37 15.2 Verso
PierisPharm
PIRS
VikingTherap
VKTX
86.00 0.7
PiperJaffray
PJC
6.58 1.2 ViperEnergyPtrs VNOM
Pixelworks
PXLW
VOD
20.37 0.5 Vodafone
Potash
POT
WEX
20.59 2.9 WEX
ProPetro
PUMP
32.41 -1.8 WSIIndustries
REV
WSCI
REVG
Net
Sym Close Chg
0.03
-0.46
0.31
0.24
0.20
0.24
1.20
0.17
0.12
-0.68
-0.89
0.57
0.12
0.43
0.15
0.23
0.59
-0.04
0.09
0.36
0.59
-1.55
0.20
0.03
0.13
0.37
-0.67
-7.91
0.17
0.02
0.12
-0.08
-0.31
1.31
0.72
2.36
-0.73
0.33
-0.06
-0.19
-0.21
0.29
0.31
-0.34
0.82
0.08
2.46
0.17
0.39
-0.16
0.10
0.12
s
s
s
s
s
s
s
21stCenturyFoxA FOXA 34.60
21stCenturyFoxB FOX 34.17
Twitter
TWTR 24.26
TylerTech
TYL 177.81
TysonFoods TSN 81.73
UBS Group UBS 18.25
UDR
UDR 38.33
UGI
UGI 46.48
US Foods
USFD 31.62
UltaBeauty ULTA 226.68
UltSoftware ULTI 216.97
UltraparPart UGP 22.38
UnderArmour A UAA 15.66
UnderArmour C UA
14.07
Unilever
UN
56.53
Unilever
UL
55.48
UnionPacific UNP 134.65
UnitedContinental UAL 67.35
UnitedMicro UMC 2.38
UPS B
UPS 118.26
UnitedRentals URI 170.61
US Bancorp USB 54.01
US Steel
X
35.35
UnitedTech UTX 127.14
UnitedTherap UTHR 150.03
UnitedHealth UNH 219.60
UnivDisplay OLED 170.60
UniversalHealthB UHS 114.38
UnumGroup UNM 54.75
VEON
VEON 3.85
VEREIT
VER
7.85
VF
VFC 74.61
Visa
V
112.99
VailResorts MTN 215.00
Vale
VALE 12.08
ValeantPharm VRX 21.65
ValeroEnergy VLO 91.86
Vantiv
VNTV 74.45
VarianMed
VAR 110.82
Vedanta
VEDL 20.39
VeevaSystems VEEV 55.92
Ventas
VTR 60.18
VeriSign
VRSN 113.91
VeriskAnalytics VRSK 95.65
Verizon
VZ
53.22
VertxPharm VRTX 150.60
Viacom B
VIAB 31.87
Viacom A
VIA 35.70
Vipshop
VIPS 12.20
VistraEnergy VST 17.74
VMware
VMW 127.56
Vodafone
VOD 31.86
VornadoRealty VNO 77.57
VoyaFinancial VOYA 51.04
VulcanMatls VMC 126.72
Net
Sym Close Chg
Stock
-0.64
-0.55
-0.20
WABCO
WBC 143.67
0.45
WEC Energy WEC 65.36
1.11 s WEX
WEX 140.26
-0.06 W.P.Carey
WPC 69.22
0.17 WPP
WPP 90.72
-0.54 Wabtec
WAB 80.79
0.35 Wal-Mart
WMT 99.16
0.41 WalgreensBoots WBA 73.30
0.61 WasteConnections WCN 71.07
0.18 WasteMgt
WM 85.88
0.16 Waters
WAT 193.82
WSO 169.34
0.27 Watsco
W
81.28
0.15 Wayfair
WB 105.08
0.20 Weibo
0.18 WellCareHealth WCG 200.15
WFC 61.13
0.10 WellsFargo
HCN 63.49
-0.07 t Welltower
-0.38 WestPharmSvcs WST 99.19
WestarEnergy
WR 52.47
1.12
-0.45 WestAllianceBcp WAL 57.14
WesternDigital WDC 80.00
0.24
WesternGasEquity WGP 36.93
-0.09
WesternGasPtrs WES 48.26
12.78 WesternUnion WU
18.89
-0.40 s WestlakeChem WLK 105.51
-4.95 WestpacBanking WBK 24.11
-0.68 WestRock
WRK 63.25
-0.04 Weyerhaeuser WY
35.06
0.03 WheatonPrecMet WPM 22.18
0.03 Whirlpool
WHR 170.16
0.74 Williams
WMB 30.49
0.30 WilliamsPartners WPZ 38.93
0.89 WillisTowers WLTW 151.87
WIT
5.47
0.16 Wipro
WF
45.53
0.10 WooriBank
WDAY 102.93
0.73 Workday
WYN 113.91
0.09 Wyndham
-0.09 WynnResorts WYNN 168.62
0.37 XPO Logistics XPO 89.03
XEL 47.83
-0.15 XcelEnergy
XRX 29.41
0.04 Xerox
Xilinx
XLNX 67.60
-0.08
Xylem
XYL 67.50
0.32
YPF
YPF 22.21
0.03
YY
YY 113.85
0.63
Yandex
YNDX 32.20
-0.36 YumBrands YUM 82.19
-0.55 YumChina
YUMC 39.55
-0.01 ZTO Express ZTO 15.93
-0.24 ZayoGroup
ZAYO 36.31
-0.13 Zillow C
Z
42.00
... Zillow A
ZG
41.81
0.37 ZimmerBiomet ZBH 119.96
-0.10 ZionsBancorp ZION 50.86
2.49 Zoetis
ZTS 72.34
W X Y Z
-0.14
-0.36
-0.62
0.30
0.18
1.16
0.95
0.59
-0.27
-0.03
0.03
1.05
1.75
-1.74
0.54
-0.42
0.09
-0.35
-0.31
-0.86
-0.68
0.01
0.63
-0.19
0.86
-0.04
-0.48
0.12
0.15
-1.52
0.18
0.26
0.13
-0.03
-0.19
0.61
0.33
0.87
-0.98
-0.42
-0.17
-0.32
-0.08
0.14
-0.75
0.54
-0.21
-1.32
0.01
0.31
-0.34
-0.29
-0.16
-0.47
0.35
BANKRATE.COM® MMA, Savings and CDs
Average Yields of Major Banks
Type
Tuesday, December 26, 2017
MMA
1-MO
2-MO
3-MO
6-MO
1-YR
2-YR
2.5YR
5YR
0.14
0.27
0.07
0.07
0.07
0.08
0.13
0.15
0.21
0.23
0.37
0.40
0.51
0.56
0.46
0.49
0.94
1.00
0.01
0.02
0.00
0.00
0.00
0.00
0.00
0.01
0.01
0.01
0.01
0.01
0.01
0.01
0.00
0.00
-0.01
0.00
National average
Savings
Jumbos
Weekly change
Savings
Jumbos
Consumer Savings Rates
Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of federally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter
of 2015 from federal regulators. 5: most desirable performance; NR: institution is too new to rate,
not an indication of financial strength or weakness. Information is believed to be reliable, but not
guaranteed.
High yield savings
Bank/rank
Phone number
Yield
(%)
Minimum
Money market and savings account
$1
1.50
$100
1.35
$0
1.30
EH National Bank /5
$0
(888) 392-5265
M.Y. Safra Bank, FSB /NR $5,000
(212) 652-7200
VirtualBank /4
$10,000
(877) 998-2265
0.81
DollarSavingsDirect /4
(866) 395-8693
CIT Bank /5
(855) 462-2652
Barclays /5
(888) 720-8756
One-month CD
Yield
Minimum
(%)
Six-month CD
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
M.Y. Safra Bank, FSB /NR $5,000
(212) 652-7200
CD Bank /4
$10,000
(888) 201-8185
1.43
1.42
1.40
One-year CD
0.30
0.15
Two-month CD
VirtualBank /4
(877) 998-2265
Applied Bank /5
(800) 616-4605
Bank/rank
Phone number
Ally Bank /5
$0
(877) 247-2559
MyeBanc,ADivisionofBACFloridaBank/4 $5,000
(855) 512-0989
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
2.00
1.77
1.76
Two-year CD
$10,000
0.15
$1,000
0.05
Three-month CD
iGOBanking.com /NR
$1,000
(800) 581-2889
Northern Bank Direct /4
$500
(844) 348-8996
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
2.10
2.00
1.92
Five-year CD
Luana Savings Bank /5
$1,000
(800) 666-2012
M.Y. Safra Bank, FSB /NR $5,000
(212) 652-7200
CD Bank /4
$10,000
(888) 201-8185
1.26
1.16
1.15
Capital One 360 /5
$0
(800) 289-1992
First Internet Bank of Indiana /4 $1,000
(888) 873-3424
Goldman Sachs Bank USA /5
$500
(855) 730-7283
2.45
2.43
2.40
High yield jumbos - Minimum is $100,000
Money market and savings account
1.30
ableBanking,adivisionofNortheastBank/5
(877) 505-1933
M.Y. Safra Bank, FSB /NR
(212) 652-7200
BBVA Compass /3
(800) COMPASS
1.26
1.25
One-month CD
Six-month CD
TriState Capital Bank /4
(866) 680-8722
Luana Savings Bank /5
(800) 666-2012
First Internet Bank of Indiana /4
(888) 873-3424
1.60
1.51
1.43
One-year CD
0.81
EH National Bank /5
(888) 392-5265
M.Y. Safra Bank, FSB /NR
(212) 652-7200
USAA /NR
(800) 583-8295
0.30
0.22
Two-month CD
MyeBanc,ADivisionofBACFloridaBank/4
(855) 512-0989
M.Y. Safra Bank, FSB /NR
(212) 652-7200
First Internet Bank of Indiana /4
(888) 873-3424
1.77
1.76
1.76
Two-year CD
0.15
VirtualBank /4
(877) 998-2265
Applied Bank /5
(800) 616-4605
Citizens Trust Bank /4
(404) 659-5959
0.05
0.01
Three-month CD
TriState Capital Bank /4
(866) 680-8722
MyeBanc,ADivisionofBACFloridaBank/4
(855) 512-0989
First Internet Bank of Indiana /4
(888) 873-3424
2.00
2.00
1.92
Five-year CD
1.41
Luana Savings Bank /5
(800) 666-2012
TriState Capital Bank /4
(866) 680-8722
M.Y. Safra Bank, FSB /NR
(212) 652-7200
1.40
1.16
First Internet Bank of Indiana /4
(888) 873-3424
EverBank /4
(855) 228-6755
M.Y. Safra Bank, FSB /NR
(212) 652-7200
2.43
2.40
2.36
Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields
are based on method of compounding and rate stated for the lowest required opening deposit to
earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per
month, three (3) of which may be checks. Rates are subject to change.
Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408
Internet: www.bankrate.com
Dividend Changes
Dividend announcements from December 26.
Company
Symbol
Yld %
Amount
New/Old
Frq
Payable /
Record
Increased
Guaranty Federal Bancshrs
Pacific Coast Oil Trust
Pathfinder Bancorp
GFED
ROYT
PBHC
2.2
.12 /.10
18.0 .0278 /.01614
1.5 .0575 /.055
Q
M
Q
Jan13 /Jan03
Jan16 /Jan02
Feb03 /Jan12
Initial
JPMorgan US Minimum Vol
JMIN
.11248
UNG
1:4
Dec29 /Dec27
Stocks
US Natural Gas Fd
/Jan05
Foreign
Itau Unibanco Holding ADR
ITUB
0.4
.0045
EBF
3.8
.10
M
Feb12 /Jan03
Special
Ennis
Feb09 /Jan12
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO:
spin-off.
.
THE WALL STREET JOURNAL.
B10 | Wednesday, December 27, 2017
MONEY & INVESTING
Crude vaults to its
highest in over two
years after disruption
to Libyan supplies
BY ALISON SIDER
AND BENOIT FAUCON
Oil prices rose to their
highest levels in 2½ years
Tuesday following a pipeline
explosion in Libya, the latest
disruption to supplies in an already tightCOMMODITIES ening market.
U . S .
crude futures briefly popped
above $60 before settling up
2.57% at $59.97 a barrel on the
New York Mercantile Exchange, their highest settlement since June 2015.
Brent, the global benchmark, rose $1.77, or 2.71%, to
$67.02 a barrel on ICE Futures
Europe, the highest settlement
since May 2015.
Prices rose sharply after an
explosion Tuesday on a pipeline leading to Libya’s largest
oil port of Es Sider. The incident is expected to reduce oil
production there by up to
100,000 barrels a day, the
country’s National Oil Co. said
on its website.
The company said it was investigating the causes of the
blast.
The radical Islamic State
and other armed groups have
frequently attacked oil facilities in the war-torn nation.
Some news reports suggested
the Libyan pipeline was sabotaged by gunmen but an official for NOC said a technical
accident couldn’t be ruled out.
A string of pipeline outages
and other supply interruptions
around the world have helped
boost oil prices in recent
months, working in tandem
with rising demand and production cuts by the Organization of the Petroleum Exporting Countries and other major
producers. U.S. crude futures
are up 11.6% this year, and
Brent is up nearly 18%.
“You’ve had a series of outages at a time when the market was on a tightening trajectory,” said Greg Sharenow,
portfolio manager at Pacific
Investment Management Co.
Light trading volumes following the Christmas holiday
likely exacerbated the size of
the move, analysts and traders
said. Both oil benchmarks had
their biggest single-day gain
since Nov. 6.
But disruptions have also
been having an outsize impact
ESAM OMRAN AL-FETORI/REUTERS
Oil Prices Surge Following Pipeline Blast
Tuesday’s explosion on a pipeline leading to Libya’s oil port of Es Sider, seen here, arrived as oil
prices already were firming on other disruptions as well as production cuts by OPEC and partners..
on prices lately because much
of the global oil glut has been
sopped up.
“As the market moves
closer to balance, supply outages have a much more profound impact than they did
three or six months ago,” said
Matthew Smith, director of
commodity research at ClipperData.
The pipeline explosion
comes as Libyan exports were
already down from last month,
according to ClipperData,
which tracks shipments. Flows
out of northern Iraq also have
been reduced following conflict between Iraq’s central
government and the Kurdish
Regional Government.
Earlier this month, Brent
prices jumped after one of Europe’s most important pipeline
systems sprang a leak and had
to be shut down, cutting off
the daily flow of some 450,000
barrels North Sea oil.
Ineos, the British chemicals
and refining company that
owns the line, said in a statement Tuesday that the crack
in the pipe has been mechanically repaired and that pressure testing was under way. A
small number of customers
have begun sending volumes
through the pipeline at low
rates, and Ineos said that it
expects to be operating at normal levels early next year.
OPEC and other major pro-
ducers, including Russia, have
been curbing production all
year. OPEC agreed in November to extend production cuts
throughout 2018 as it targets
reducing global stocks to their
five-year average.
Fuel prices also vaulted
higher Tuesday. A blast of icy
weather is set to boost demand for heating oil even as
supplies are relatively tight
heading into winter. Diesel futures rose 6.91 cents, or 3.51%,
to $2.0385 a gallon—the highest level since February 2015.
Gasoline futures rose 2.43
cents, or 1.38%, to $1.7866 a
gallon.
“I think a lot of this movement is driven by extreme
cold weather in the next 10
days,” said Donald Morton, senior vice president at Herbert
J. Sims & Co., who oversees an
energy trading desk.
Higher prices could invite
more production out of U.S.
shale fields and elsewhere,
something that has limited
oil’s rise this year.
U.S. oil production hit a record high of 9.789 million barrels a day in the week ended
Dec. 15, according to data published by the Energy Information Administration.
—Sarah McFarlane
contributed to this article.
Retailers’
Shares Get
Lift From
Holidays
ESAM OMRAN AL-FETORI/REUTERS
BY BEN EISEN
Mexico’s central bank auctioned $500 million in dollar-hedging contracts on Tuesday. The peso-dollar exchange rate displayed at a bank in Mexico City last week.
Bank of Mexico Moves to Prop Up the Peso
BY ANTHONY HARRUP
MEXICO CITY—The Bank of
Mexico auctioned $500 million
in dollar hedging contracts
Tuesday, expanding its existing
program from $5 billion in response to
CURRENCIES
recent volatility that
had
sent
the peso to a nine-month low
against the U.S. dollar.
The foreign-exchange commission, which includes officials of the central bank and
the finance ministry, cited recent volatility in the exchange
rate and lack of liquidity in
the market in its decision to
increase the amount of
hedges.
The central bank placed
$250 million in 30-day nondeliverable forwards at an aver-
Asian Mission
Japan's MUFG is looking to
other Asian nations for growth
as low interest rates at home
squeezes profit.
Mitsubishi UFJ Financial
Group net profit
1.05 trillion yen
1.00
0.95
0.90
0.85
¥1,000 yen = $8.84
0.80
2013
’14
’15
’16
Note: Fiscal years end in March
Source: the company
THE WALL STREET JOURNAL.
’17
Dollar Weakens
Against Its Peers
The U.S. dollar slipped
Tuesday to open a holidayshortened week.
The Wall Street Journal
Dollar Index, which measures
the currency against 16 others,
fell less than 0.1% to 86.70,
declining against the Canadian
dollar.
The dollar fell versus its
Canadian counterpart amid a
climb in the price of oil, which
age exchange rate of 19.6256
pesos to the dollar, and $250
million in 57-day forwards at
19.6918 pesos per dollar. Demand was $255 million for the
usually supports the Canadian
currency. The U.S. currency fell
0.3% against the loonie to
C$1.2689.
U.S. crude rose roughly 2%
Tuesday as supply was
curtailed by the outage of the
Forties Pipeline System in the
North Sea, where a hairline
crack halted the flow of
450,000 barrels a day of crude
earlier this month. Pipeline
operator Ineos said Sunday it
continued to make progress
toward its restart, which is
expected to happen early in
the new year.
one-month and $375 million
for the two-month contracts.
If the peso is weaker when
the contracts mature, the central bank pays the difference in
pesos, and if the local currency
appreciates, the bank receives
the difference. The hedges are
a way for the central bank to
support the exchange market
without depleting Mexico’s international reserves, which
stand around $172.5 billion.
The hedging program for up
to $20 billion was set up in
February 2017 after the peso
had sunk to record lows, weakening as far as 22 to the dollar.
The bank sold an initial $1 billion in forwards, and later increased the amount to $5 billion between late October and
early December. The bank rolls
over the contracts as they expire.
The commission said Tuesday’s decision is aimed at providing liquidity and that it will
take additional measures if
needed to maintain an orderly
market. The principal anchor
for the value of the currency,
however, will continue to be
ensuring solid economic fundamentals, it said.
The peso rallied briefly in
Mexico City to around 19.57 to
the dollar from 19.7385 Friday,
but then gave back gains and
was quoted at 19.8870 peso
per dollar Tuesday afternoon.
“We expect several events
to undermine the performance
of the peso (at least during the
first half of 2018), stressing
the [North American Free
Trade Agreement] negotiations, investors reshaping
their strategies following the
new U.S. fiscal scheme, hawkish rhetoric from the Federal
Reserve and Mexico’s 2018
electoral process,” Grupo Financiero Banorte said in a
note.
An upbeat holiday season
is lifting shares of department
stores, apparel companies, and
specialty retailers.
The SPDR S&P Retail exchange-traded fund, which
tracks an index of retail companies, jumped 1.1% on Tuesday as the S&P 500 fell 0.1%.
A steady climb in recent
months has turned the ETF
positive for 2017. It is up 4.4%
with three sessions left in the
year.
Kohl’s Corp rose 6% while
Macy’s Inc. climbed 4.6%,
making them the best performers in the S&P 500 on
Tuesday. J.C. Penney Co. was
up 5.4% while Nordstrom Inc.
climbed 2%.
Foot Locker Inc. rose 2.7%
and Dick’s Sporting Goods
climbed 2.6%. Abercrombie &
Fitch was up 4.6%, Gap Inc.
rose 1.5% and Express jumped
4.4%.
Retailers have struggled in
recent years as e-commerce
has lured business away from
traditional brick-and-mortar
chains. Still, strong consumer
confidence and an expanding
labor market propelled sales
at retailers ahead of the holidays.
U.S. holiday-period sales
rose at the best pace since
2011, according to Mastercard
SpendingPulse, which tracks
both online and in-store
spending.
That has benefited investors who scooped up retail
stocks at bargain prices earlier
in the year. Kohl’s is now up
15% for the year while WalMart Stores Inc. has risen
43%. Others haven’t fared as
well in 2017; Macy’s is down
25% and Target Corp. has
fallen 8.9%.
E-commerce giant Amazon.com Inc. was also up 0.7%
on Tuesday, bringing its yearto-date gains to 57%.
Japanese Bank Boosts Its Presence in Indonesia
BY KOSAKU NARIOKA
AND P.R. VENKAT
Mitsubishi UFJ Financial
Group Inc. said it planned to
take a majority stake in a midsize Indonesian bank in a deal
likely to top $4 billion, bolstering its presence in a fastgrowing Asian nation to balance weakness at home.
MUFG, Japan’s largest bank,
said it agreed to buy a 73.8%
stake in PT Bank Danamon
from Singapore state investment company Temasek Holdings Pte. and its affiliates.
The deal highlights MUFG’s
push to escape dependence on
its home market, where low
interest rates have squeezed
margins and long-term growth
is likely to be limited because
the population is declining.
MUFG already has a big U.S.
presence as the owner of Union
Bank and the top shareholder
in investment bank Morgan
Stanley. MUFG held about 24%
of Morgan Stanley shares as of
November, according to a regulatory filing.
MUFG said it planned to
undertake the Indonesia acquisition in phases, initially buying a 19.9% stake in Bank Danamon for $1.2 billion, and
raising the stake to 40% by the
end of September 2018. An official for MUFG said the bank
wanted to acquire additional
shares to reach the 73.8%
stake as soon as possible after
obtaining necessary approvals
from regulators. MUFG said
the price for the additional
shares would be based on Danamon’s book value.
If book value and other conditions remain constant,
MUFG would spend $4.3 billion for the 73.8% stake, but
factoring in a possible rise in
book value, the bank could ultimately spend ¥700 billion
($6.18 billion) for that stake,
according to a person familiar
with the matter.
Temasek has been seeking
to sell its stake in Danamon for
many years. In 2013, a planned
deal with Singapore-based DBS
Group Holdings Ltd. that valued Danamon at $7 billion fell
through after running into resistance from regulators.
Since that time, the Indonesian rupiah has fallen against
the dollar, allowing MUFG to
offer more than DBS for its
initial stake in rupiah terms
but put a lower valuation on
Danamon in dollar terms.
MUFG is offering 8,323 rupiahs per share for its initial
stake, more than DBS’s offer of
7,000 rupiahs per share.
Bank Indonesia, the country’s central bank, said that it
would permit DBS to buy only
a 40% stake initially in Danamon.
Bank Indonesia said DBS
could complete the full acquisition only if Singapore allowed “reciprocity” by allowing Indonesia’s banks to open
more branches there.
Under Indonesian rules issued in July 2013, both foreign
and domestic banks are limited
to buying initial stakes of 40%
in Indonesian banks.
Those stakes can be raised
with Bank Indonesia’s permission if the bank being acquired
meets standards for corporate
governance and financial
health.
MUFG said that if it wins
permission to go beyond a 40%
stake, “this will provide an opportunity for all other existing
Danamon shareholders to either remain as shareholders or
receive cash from MUFG.”
Temasek said it would work
closely with MUFG “to lead
the bank forward into its next
phase of growth.”
.
THE WALL STREET JOURNAL.
Wednesday, December 27, 2017 | B11
* * * *
HEARD ON THE STREET
Email: heard@wsj.com
China’s Problematic Oil-Yuan Plan
Oil markets are already
among the world’s most volatile—prices can leap 3%
overnight on news from Middle Eastern nations many investors couldn’t pinpoint on
a map.
Oil guzzlers like China and
India suffer the additional
indignity of having to pay
for this fickle resource in
dollars, magnifying price
swings. China would love to
pay in yuan instead. And after years of preparation, it is
finally launching yuan-denominated oil futures to let
it do just that.
It makes sense for China
to have its own benchmark:
China’s oil bill shouldn’t remain forever pegged to the
price of barrels from aging
Brent fields off the coast of
Britain, half a world away.
The problem is that China
doesn’t trust its own markets, and routinely intervenes when they move in
ways it doesn’t like—particularly the yuan. As long as
that is true, foreign oil producers and traders will be
leery of committing capital
to a market that adds regula-
WSJ.com/Heard
FINANCIAL ANALYSIS & COMMENTARY
Totally Reasonable
Iron-ore prices
China Dalian futures
$150 per ton
Actual China import price
Singapore futures
125
100
75
50
25
2014
’15
’16
’17
THE WALL STREET JOURNAL.
Source: Thomson Reuters, CEIC
tory and currency risk to an
already volatile game.
China’s squeeze on crossborder capital flows—now
much tighter following the
run on the currency in
2015—already has wreaked
havoc in the country’s commodity markets. Dalian,
where iron-ore futures are
traded, is dominated by retail investors and highly volatile. Price swings in global
markets like copper tend to
be less sharp because insti-
tutional traders can take advantage of cross-border arbitrage opportunities when
prices move too abruptly in
New York or London.
In China that isn’t so easy,
meaning price swings can
get very wild. At various
points over the past two
years—most notably in early
2017—near-term iron-ore futures in Dalian have traded
at a roughly 50% premium to
the actual average price of
iron ore imported into China.
China’s weight in global
oil demand is also still far
less than in iron ore, despite
the rapid growth of recent
years—it accounted for just
13% of global demand in
2016, against 20% for the
U.S.
Given the additional risks,
the only real reason to use a
yuan contract is to curry favor with Beijing. Big vendors
like Saudi Aramco, which
also happens to be hoping
for a chunk of Chinese cash
for its expected initial public
offering, may start using the
new contract to a limited extent. But it seems likely that
it will continue doing the
bulk of its global business
using dollar-based benchmarks.
Global investors like to
complain that the U.S. treats
the dollar as “our currency
and your problem.” But the
current Federal Reserve is
among the most transparent
central banks in history.
If you think hawking your
wares in dollars is bad, boy,
does China have a deal for
you.
—Nathaniel Taplin
OVERHEARD
That will teach investors
not to take off early during
the holidays.
A late Christmas present
arrived for shareholders of
tiny Aptose Biosciences
Tuesday morning. The company said in a news release
its experimental leukemia
treatment had received an orphan drug designation from
the Food and Drug Administration. That entitles the drug
to marketing exclusivity and
tax credits. Shares soared
nearly 30% Tuesday.
But investors could have
taken advantage before then.
The FDA disclosed the orphan drug designation on its
website on Friday, when holiday-minded investors were
out shopping or had already
bolted for the weekend. Aptose shares barely budged after the news, which hit the
FDA website around noon.
Perhaps the proponents of
efficient markets, who argue
that stock prices always reflect publicly available information, should consider adding an exception for holiday
weeks.
Investors in Hot Coco Bonds Should Consider the Risks
Cocos are hot again. The
junior bonds that are designed to help shore up
banks during a crisis are
ending 2017 with yields near
record lows.
These bonds, known as
contingent convertible
bonds, are mainly issued by
European and Asian banks
but bought by investors all
over the world. Cocos help
banks deal with heavy losses
because in times of stress
they convert to equity or are
written down. They become
risky in sudden and unexpected ways.
Regulators should be nervous about their rally: the
better cocos perform, the
more likely it is that nonspe-
Reheated Coco
ICE Contingent Capital index of
the value of junior bank bonds
110
105
100
95
90
85
2014
’15
’16
’17
Source: FactSet
cialist investors come back
in hunting for yield. That
matters because these bonds
are complex investments.
They should be in the hands
of investors who understand
them and can be relied upon
to bear losses if needed.
Despite the rally, yields
remain attractive: The ICE
Contingent Capital index of
such bonds yields 4.7% on an
effective duration of 3.7
years, which compares with
U.S. high-yield corporate
bonds on a yield of 4.4%
with a duration 4.5 years.
One thing supporting
yields, according to Davide
Serra of specialist investors
Algebris in a recent speech,
is that the European Central
Bank can’t buy bank debt in
its bond-buying program.
Improving results in
stress tests may also give cocos an aura of invincibility.
In the U.K. stress tests this
year, which were tougher
than past years, no junior
bonds got converted and
only two banks had to stop
paying coupons on them
throughout the test, partly
because banks are holding
more equity.
That is great news for today’s bondholders. But similar results next year and beyond could give investors
the idea that junior bonds
won’t lose money even in extreme conditions.
Another big risk that is
that banks don’t repay their
bonds at the first opportunity, extending cocos’ maturities suddenly for many
years and causing big price
falls. This isn’t theoretical: It
could happen in coming
months with bonds from
Barclays, Lloyds Banking
Group and Royal Bank of
Scotland because the fall in
the pound has made repaying dollar or euro bonds
more costly, according to research firm, CreditSights.
If investors begin to price
cocos like ordinary bonds
that may be a sign they are
forgetting the unique ways
they can blow up.
That could make it harder
for regulators to enforce
losses on investors when
they most need these complex bonds to perform their
function, which is to limit
the costs to everyone else of
a bank collapse.
—Paul J. Davies
Next Deal
Target in
Health Care
The deal boom in the
health-care industry is showing no signs of slowing. That
could help one beaten-down
stock reverse its fortunes.
Shares of Mednax Inc.,
which owns medical practices across the country,
have languished despite solid
revenue growth. The problem has been cost control.
Net income was 7.6% of sales
in the most recent quarter.
In 2014, that figure was 13%.
The stock is down nearly
40% from its 2015 peak.
But the relentless consolidation in health-care services means investors should
give the company another
look. The big recent trend is
insurers trying to better control costs by integrating with
other parts of the healthcare system.
CVS Health announced
plans to buy Aetna earlier
this year. Last week, Humana bought a stake in Kindred Healthcare’s home care
business. Other insurance
companies will need to consider similar deals.
The cost issues at Mednax
are an invitation to a prospective buyer to turn things
around. Hedge fund Elliott
Management, which owns
about 2% of shares outstanding, said in a securities filing
last month it intends to communicate with Mednax management and board of directors about a “broad range of
strategic and operational
matters” including a possible
sale of the business.
Taking a flier on a possible deal is relatively inexpensive. The shares trade at
less than 15 times forward
earnings, according to FactSet. That is well below the
stock’s five-year average.
For one of the hottest corners of the deals market,
that isn’t such a bad price.
—Charley Grant
MARKETS
U.S. Stocks Edge Lower as Apple, Suppliers Slide
BY MICHAEL WURSTHORN
Sinking Feeling
Shares of Apple and some of its parts suppliers fell, pulling the
S&P 500 down Tuesday.
0%
–2
–3
–4
9:30
Shorter-term U.S. government bonds weakened Tuesday in thin holiCREDIT
day trading as
MARKETS the
Treasury
sold $26 billion
of
two-year
notes.
The yield on the two-year
U.S. Treasury note rose for a
10
11
noon
Apple shares weighed on major indexes after reports it might reduce an iPhone X sales forecast.
few trading days left in the
year, no one is going to make
significant changes.”
The Dow Jones Industrial
Average slipped 7.85 points, or
less than 0.1%, to 24746.21,
while the S&P 500 declined
2.84 points, or 0.1%, to
2680.50. The tech-heavy Nasdaq Composite fell 23.71
points, or 0.3%, to 6936.25.
Apple led the Dow lower,
shedding $4.44, or 2.5%, to
$170.57 and contributing
roughly 31 points to the blue-
chip index’s decline after reports that the company is considering cutting its firstquarter sales forecast for its
iPhone X. The Wall Street
Journal reported last week
that estimates from two market-research firms indicate
that iPhone X sales are on par
with the lackluster pace of
most recent models.
Several companies that supply parts to Apple fell. Chip
maker Broadcom declined
4.25, or 1.6%, to 258.10, while
Skyworks Solutions fell 1.87,
or 1.9%, to 95.20.
Financial stocks also lagged
behind as U.S. interest rates
declined, potentially crimping
profits for lenders. Goldman
Sachs Group fell 1.25, or 0.5%,
to 257.72, while JPMorgan
Chase slid 43 cents, or 0.4%, to
107.02.
Among the gainers were
shares of retailers and energy
firms, two sectors that have
underperformed
compared
with shares of tech and other
fifth consecutive day to 1.903%
from 1.894% Friday. The yield
on the benchmark 10-year
Treasury note fell for a third
consecutive session to 2.467%
from 2.486%. Bond yields fall
as prices rise.
Along with the two-year
notes, the Treasury also sold
$134 billion of bills maturing
in six months or less. Traders
described activity in the mar-
ket as quiet, with many people
out for the holidays. Later this
week, the Treasury is also selling floating-rate debt along
with five- and seven-year
notes.
The 10-year yield last week
posted its biggest weekly increase since the week of Sept.
15, in what investors described
as light preholiday trading,
climbing above the 2.446%
level where it ended 2016. A
smaller increase in the twoyear yield led to a wider gap
between yields on longer- and
shorter-term bonds.
The yield curve, as the difference is known, is typically
seen as a barometer of sentiment about the economy, with
a steepening curve suggesting
prospects
for
continued
growth.
big contributors to this year’s
rally.
Shares of retailers got a
boost after data suggested that
U.S. retail sales in the holiday
period rose at their fastest
pace since 2011.
Kohl’s climbed 3.21, or 6%,
to 56.87, making it the biggest
gainer for the S&P 500, while
Macy’s added 1.18, or 4.6%, to
26.85.
Energy stocks in the S&P
500 rose 0.8%, the sector’s
sixth consecutive session of
advances, as U.S. crude oil
jumped to its highest settle
value since June 2015.
Tom Stringfellow, chief investment officer of Frost Investment Advisors, said the
gains among energy companies
and retailers this month suggest the market is entering a
AUCTION RESULTS
Here are the results of Tuesday's Treasury auctions.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
13-WEEK AND 26-WEEK BILLS
13-Week
26-Week
$121,791,496,100 $140,665,358,900
$45,000,036,100 $39,000,561,900
$545,756,100 $467,679,900
$260,000,000 $1,000,000,000
99.634736
99.226500
(1.445%)
(1.530%)
1.470%
1.563%
Coupon equivalent
26.22%
20.38%
Bids at clearing yield accepted
912796LS6
912796PM5
Cusip number
Applications
Accepted bids
" noncomp
" foreign noncomp
Auction price (rate)
Both issues are dated Dec. 28, 2017. The 13-week bills
mature on March 29, 2018; the 26-week bills mature
on June 28, 2018.
FOUR-WEEK BILLS
Applications
1
2
3
THE WALL STREET JOURNAL.
Source: FactSet
Yields on Short-Term Treasurys Climb
BY DANIEL KRUGER
S&P 500
Broadcom
Skyworks Solutions
Apple
–1
RONEN TIVONY/ZUMA PRESS
U.S. stocks edged lower in
their first day of trading since
the Christmas holiday.
Declining shares of Apple
and some of its parts suppliers pulled maTUESDAY’S jor
indexes
MARKETS
down, while
financial
firms
also
struggled. That offset gains
among energy companies and
several major retailers that
got a boost after new data
showed an increase in holiday spending.
Still, trading activity has
been light as major indexes
have fallen over the past two
trading sessions that straddled
the holiday weekend. About
4.03 billion shares changed
hands Tuesday, the lowest volume for a full day of trading
this year.
Indexes remain near their
record highs, helped by a
strong run of upbeat profit results and steady economic expansion in the U.S. and abroad
this year. With a sweeping
overhaul of the U.S. tax code in
place, as well as a stopgap
spending measure to keep the
government funded, trading activity is likely to remain muted
in the final week of the year,
said Kenny Polcari, director of
equities at O’Neil Securities.
“The market moves have already happened,” said Mr. Polcari, noting that the Dow is up
2% in December and the S&P
500 has eked out another 1% to
bolster the indexes’ doubledigit climbs this year. “With a
$148,147,334,600
new stage in 2018 that may favor sectors that underperformed compared with techoriented growth stocks.
“The market constituency is
changing as we are getting into
later stages of the economic cycle,” Mr. Stringfellow said.
“We’re in an environment
where this global growth momentum actually has a chance
of continuing on into next year.”
European markets were
closed for Boxing Day on
Tuesday.
In Tokyo at midday
Wednesday, the Nikkei Stock
Average was up 0.07%. Also in
early Asian trading Wednesday, the Shanghai Composite
was down 0.03%, while South
Korea’s Kospi fell 0.18%.
—Kosaku Narioka
contributed to this article.
Accepted bids
" noncompetitively
" foreign noncompetitively
Auction price (rate)
Coupon equivalent
Bids at clearing yield accepted
Cusip number
$50,000,084,600
$510,360,600
$0
99.903167
(1.245%)
1.264%
92.22%
912796NP0
The bills, dated Dec. 28, 2017, mature on Jan. 25, 2018.
TWO-YEAR NOTES
$68,792,719,700
Applications
$29,398,819,700
Accepted bids
$172,196,700
" noncompetitively
$100,000,000
" foreign noncompetitively
99.908366
Auction price (rate)
(1.922%)
1.875%
Interest rate
82.48%
Bids at clearing yield accepted
9128283N8
Cusip number
The notes, dated Jan. 2, 2018, mature on Dec. 31, 2019.
.
THE WALL STREET JOURNAL.
B12 | Wednesday, December 27, 2017
MARKETS
A Banner Year for Corporate Debt
By almost any measure,
corporate borrowers had it
easy in 2017.
Yields on corporate debt,
which fall as prices rise,
began the year at very low
levels and ended the year
even lower. Investors bought
up pretty much every type of
debt instrument, from
investment-grade bonds to
collateralized loan obligations.
Many analysts expect more
of the same in the early part
of 2018. A test could come
later in the year, as combined
net bond-buying by the
Federal Reserve and
European Central Bank is
expected to turn negative,
removing a key support for
fixed-income markets.
The extra yield investors demanded to own corporate bonds over U.S. Treasurys
5 percentage points
High-yield spread
4
3
2
Investment-grade spread
1
0
January
February
March
April
May
June
July
August
September
October
November
December
Ten largest U.S. marketed bonds, billions
Feb. 2
Apple
$10.0
Jan. 31
AT&T
$10.0
Jan. 30
Microsoft
$17.0
Jan. 11
Broadcom
$13.6
Aug. 8
BAT Capital
$17.3
July 27
AT&T
$22.5
May 19
Qualcomm
$11.0
March 13
Verizon
$11.0
Nov. 7
Oracle
$10.0
Aug. 15
Amazon.com
$16.0
With interest rates low and investor demand high, gross issuance of investment-grade bonds and leveraged
loans hit records. Sales of lower-rated bonds and collateralized debt obligations were also robust.
Gross issuance: investment-grade bonds*
High-yield bonds
Leveraged-loans
Collateralized loan obligations
$800 billion
600
400
200
0
’13
’14
’15
’16
’17†
’13
’14
’15
’16
’17†
’13
’14
’15
’16
’17‡
’13
’14
’15
’16
’17‡
Though gross issuance of
investment-grade corporate bonds
boomed, net supply was more modest,
helping support prices on existing bonds.
Demand from investors allowed
companies to lower interest rates on a
record volume of their outstanding
leveraged loans, saving them billions.
A healthy economy and easy
credit conditions contributed
to a declining default rate,
reducing risk for investors.
Bond markets are expected to get less
support from central banks in 2018 as
the Fed and ECB scale back
easy-money policies.
Net investment-grade bond supply
Leveraged loans repriced at lower rate
U.S. speculative default rate
Net asset purchases, Federal Reserve and
European Central Bank
$800 billion
$800 billion
6%
600
600
400
400
200
200
0
’14
’15
’16
’17**
Projection
50
4
25
0
2
–25
0
’13
$75 billion
0
’13
’14
’15
’16
’17‡
–50
2013
’14
’15
’16
’17
2017 ’18
*Excludes financial institutions †Through Through Dec. 20 ‡Through Dec. 19
**As of Nov. 30
Sources: BofA Merrill Lynch indexes via Federal Reserve Bank of St. Louis (spreads); Dealogic (deals, issuance of investment-grade and high-yield bonds); LCD, an offering of S&P Global Market Intelligence (issuance of leveraged loans and collateralized loan obligations,
Reporting by Sam Goldfarb, graphic by Nigel Chiwaya/THE WALL STREET JOURNAL.
repricing of leveraged loans); Barclays PLC (net issuance); Moody's Investors Service (default rate); Wells Fargo Securities, Fed, ECB, Bloomberg L.P. (purchases)
Watching your 8-year-old mix and match potions,
you see “Distinguished Chemistry Scholar” in her future.
And a tuition bill in yours.
U.S.
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IVV
WHEN INSPIRATION HITS,
BUILD FOR WHAT’S NEXT.
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AGG
INT’L
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1. Source: BlackRock and Morningstar, as of 12/31/16. Comparison is between the average Prospectus Net Expense Ratio for the iShares Core Series ETFs (0.08%) and the
average Prospectus Net Expense Ratio of active open-end mutual funds (1.17%) available in the U.S. on 12/31/16. Visit www.iShares.com or www.BlackRock.com to
view a prospectus, which includes investment objectives, risks, fees, expenses and other information that you should read and consider carefully
before investing. Investing involves risk, including possible loss of principal. Buying and selling shares of ETFs will result in brokerage commissions. TheiShares funds
are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”). © 2017 BlackRock. All rights reserved. iSHARES and BLACKROCK are registered trademarks
of BlackRock. All other marks are the property of their respective owners. 242339
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