For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com DJIA 22841.01 g 31.88 0.1% WSJ.com FRIDAY, OCTOBER 13, 2017 ~ VOL. CCLXX NO. 88 * * * * * * NASDAQ 6591.51 g 0.2% STOXX 600 390.28 À 0.03% 10-YR. TREAS. À 7/32 , yield 2.323% OIL $50.60 g $0.70 GOLD $1,293.30 À $7.50 A Fractious Spain Celebrates Its National Day What’s News A T&T disclosed that its losses of traditional-TV customers worsened in the latest quarter, fueling concern about pressures being exerted by cord-cutting. A1 Fidelity fired a star stock picker last month for allegedly sexually harassing a junior female employee. B1 Goldman is acquiring Genesis, a Los Angeles firm that backs investors seeking to flip houses. B1 Samsung Electronics forecast that third-quarter profit will be its highest ever. Separately, CEO Kwon said he plans to step down. B6 Equifax said its website was used to serve “malicious content” to consumers due to code created by a vendor. B1 Facebook said it will disclose the types of people Russian-backed ads targeted around the election. B4 World-Wide The administration will end billions of dollars in payments to insurers under the ACA program, but Trump has told at least one lawmaker that the payments may continue if a bipartisan deal is reached on health care. A1, A4 The president is expected to announce Friday that he won’t certify Iran is complying with the 2015 nuclear agreement. A1 The Palestinian Authority and Hamas agreed to reconcile but offered few details on security in Gaza that had been key to negotiations. A6 Pakistani forces aided by U.S. intelligence freed an American-Canadian family from captivity by militants. A6 House Republicans are moving toward an agreement that preserves part of the federal deduction for state and local taxes. A4 Over 20 major fires continued to burn across Northern California, leaving at least 31 people dead. A3 The House passed a bill to provide $36.5 billion in disaster relief for victims of hurricanes and wildfires, as well as credit to aid Puerto Rico. A3 The U.S. will withdraw from Unesco, the State Department said, citing the body’s “anti-Israel bias.” A8 Kelly defended his moves to manage the West Wing and brushed off talk that he was frustrated in the post. A4 An EU negotiator said he won’t recommend that Brexit talks with Britain advance, citing a lack of progress. A8 CONTENTS Business News.. B3,6 Crossword............... A11 Heard on Street. B12 Life & Arts....... A10-11 Mansion............. M1-14 Markets............. B11-12 Opinion.............. A13-15 Sports........................ A12 Streetwise................. B1 Technology............... B4 U.S. News............. A2-4 Weather................... A11 World News....... A6-8 > s Copyright 2017 Dow Jones & Company. All Rights Reserved BY STEPHANIE ARMOUR FLYING THE FLAG: People walk under a huge Catalan flag during Spain’s National Day in Barcelona on Thursday. Thousands of Catalans who want their region to remain in Spain marked the day by waving both Spanish and Catalan flags and shouting ‘I am Spanish.’ A7 A Hot Startup Misled Advertisers Employees of Outcome, valued at $5.5 billion, manipulated information given to clients, sources say BY ROLFE WINKLER In an era of celebrity tech entrepreneurs, Chicago has its own local star in Rishi Shah, a charismatic 31-year-old who has parlayed his advertising startup into connections with political and financial heavyweights. A major donor to the Democratic Party, Mr. Shah has recently held private meetings at his office with Sens. Chuck Schumer and Elizabeth Warren. Fortune named him to its “40 Under 40” list. Forbes crowned him one of the world’s newest billionaires. Mr. Shah’s startup, Outcome Health, installs video screens in doctors’ offices and charges pharmaceutical companies to run ads on them aimed at patients. After investors including Goldman Sachs Group Inc. and Google parent Alphabet Inc. poured around $500 million into Outcome at what the Chicago company said was a valuation of $5.5 billion in May, prominent venture capitalist Bill Gurley tweeted that Mr. Shah, its chief executive, was “the real deal.” In the Big Leagues Outcome Health ranks among the most highly valued U.S. startups Uber $68 billion Airbnb $31 billion SpaceX $21 billion Palantir $20 billion WeWork $20 billion Pinterest $12.3 billion Dropbox $10 billion Stripe $9.2 billion Lyft $7.5 billion Outcome Health $5.5 billion Sources: Companies, WSJ reporting THE WALL STREET JOURNAL. Somewhat less real were aspects of some deals Outcome cut with pharmaceutical advertisers, say former employees along with several advertisers. Interviews with these people as well as internal documents and other material from Outcome reviewed by The Wall Street Journal show how some employees misled pharmaceutical companies by charging them for ad placements on more video screens than the startup had installed. Some Outcome employees also provided inflated data to measure how well ads performed, created documents that inaccurately verified that ads ran on certain doctors’ screens and manipulated third-party analyses showing the effectiveness of the ads, according to some of these people and documents. The altered reports and data, they say, helped increase business for Outcome, whose customers have included drug companies such as Bristol-Myers Squibb Co. and Novo Nordisk A/S. Those two companies declined to comment. Outcome doesn’t pubPlease see STARTUP page A9 Trump Plans Broad Swipe At Iran Over Nuclear Deal BY FELICIA SCHWARTZ WASHINGTON—President Donald Trump is expected to announce on Friday that he won’t certify Iran is complying with the 2015 multinational nuclear agreement and will take Tehran to task more broadly for practices ranging from missile tests to support of violent groups, U.S. officials said. The refusal to certify Iran’s compliance doesn’t mean the Mrs. Goodell Has a Secret Identity i i i Anonymous tweeter hits back at NFL critics BY ANDREW BEATON When National Football League Commissioner Roger Goodell is under attack, as he so often is these days, @forargument is there to fight back. Wait, who? The Twitter account, under the name “Jones smith,” has no followers, no profile picture and has been virtually dormant for long periods since its creation in 2014. But @forargument has roared to life in the past few months, rising up to vigorously defend Mr. Goodell against perceived attacks on his handling of issues such as the national anthem protests by players. The most frequent sparring partner for @forargument is Please see NFL page A8 U.S. will pull out of the deal, the officials added, and Mr. Trump isn’t expected to ask Congress to re-impose economic sanctions that had been lifted as part of the agreement. But it could send the White House down a road of trying to change a deal that U.S. allies still support. Mr. Trump, a longtime opponent of the accord negotiated under his predecessor’s administration, is expected to announce his decision in a speech in which he will also lay out plans to crack down on Iran’s missile program and its support for Hezbollah and other militant groups in the Middle East, the officials said. Mr. Trump is also likely to designate the Islamic Revolutionary Guard Corps, Iran’s Please see TRUMP page A6 The Trump administration will end billions of dollars in payments to insurers under the Affordable Care Act program, but President Donald Trump has privately told at least one lawmaker that the payments may continue if a bipartisan deal is reached on heath care, according to people familiar with the matter on Capitol Hill and in the healthcare industry. The White House in a statement Thursday night said that based on guidance from the Justice Department, the Department of Health and Human Services has determined there is no appropriation for the payments and the government can’t lawfully make the payments. The Department of Health and Human Services was even more direct, saying the payments “will be discontinued immediately” and citing a legal opinion from Attorney General Jeff Sessions. “We believe that the last Administration overstepped the legal boundaries drawn by our Constitution,” acting HHS Secretary Eric Hargan and Seema Verma, administrator of the Centers for Medicare & Medicaid Services, said in a joint statement. “Congress has not appropriated money for [the payments], and we will discontinue these payments immediately.” Mr. Trump told at least Please see HEALTH page A4 Trump has range of options to chip away at health law....... A4 Hostage Family Freed in Pakistan REUTERS Amazon has suspended studio chief Roy Price in the wake of allegations of mismanagement and sexual harassment, and criticism of his ties with Harvey Weinstein. A1 New York City police are re-examining allegations of sexual abuse by Weinstein. B3 YEN 112.29 White House says subsidies under Affordable Care Act lack legal grounding GONZALO FUENTES/REUTERS Trump is nearing a decision on his pick to lead the Fed and met Wednesday with Stanford economist John Taylor, one of four candidates. A2 EURO $1.1832 Trump Moves To End Insurer Payments Business & Finance J.P. Morgan and Citigroup posted higher profits as credit-card lending and a tight rein on costs offset downbeat trading results. B1 Stocks pulled back from Wednesday’s records as bank shares fell. The Dow lost 31.88 points to 22841.01. B11 HHHH $4.00 RESCUE: An American-Canadian couple, who had three children in captivity, had been held by militants for five years. A6 Yaroslav Trofimov: Turkey, U.S. clash emboldens Iran... A6 AT&T Woes Sink TV, Cable Stocks Amazon Suspends Head of Its Studio BY DREW FITZGERALD Concern grew Thursday that cord-cutting is putting heavy pressure on television distributors and channel owners after AT&T Inc. disclosed that its losses of traditionalTV customers worsened in the latest quarter. The disclosure weighed on shares of the telecom giant, which owns DirecTV and is the biggest U.S. provider of pay-TV services, as well as other media players. Shares of AT&T and satellite rival Dish Network Corp. shed 6% and 5%, respectively, in Thursday’s session. The two biggest cable-TV providers, Comcast Corp. and Charter Communications Inc., also retreated. The selloff erased more than $24 billion in market value. AT&T said in a securities filing late Wednesday that its video-subscriber base declined by about 90,000 customers in the third quarter as customers abandoned its fiber-opticvideo and satellite-TV services. The decline, its third quarterly drop in a row, came despite nearly 300,000 new accounts on its DirecTV Now service, which streams channels over the internet. The report means AT&T lost more satellite and U-verse fiberoptic customers than it gained through DirecTV online, a sign Please see TV page A2 INSIDE CONDOS GO BUSINESS CLASS THE BOSS ON BROADWAY CREDIT CARDS BOOST BANK EARNINGS MANSION, M1 LIFE & ARTS, A10 BUSINESS & FINANCE, B1 BY BEN FRITZ AND JOE FLINT Amazon.com Inc. has suspended the head of its entertainment studio, Roy Price, in the wake of allegations of mismanagement and sexual harassment and criticism of his close business relationship with movie producer Harvey Weinstein. “Roy Price is on leave of absence effective immediately,” said Amazon spokesman Craig Berman. He didn’t provide an explanation of the move. Mr. Price’s suspension comes soon after a female producer went public about a 2015 sexual-harassment complaint she made against him and after actress Rose McGowan unPlease see STUDIO page A2 New York City police re-examine Weinstein incident.................... B3 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A2 | Friday, October 13, 2017 * *** THE WALL STREET JOURNAL. U.S. NEWS Trump Nears Decision on Next Fed Chief BY KATE DAVIDSON AND PETER NICHOLAS CHARLOTTESVILLE, VA. City Sues to Block Rally Organizers The city of Charlottesville filed a lawsuit Thursday seeking to prevent organizers of a violent “Unite the Right” rally in August from returning to engage in “unlawful paramilitary activity.” Charlottesville and local businesses, which joined the suit, said bands of white nationalists wielding clubs and shields, along with heavily armed paramilitary groups, undercut local authority while terrorizing residents at the Aug. 12 protest. The suit names a number of people and paramilitary groups as defendants, including Jason Kessler, the lead organizer of the rally that led to clashes between organizers and counterprotesters where dozens were injured and one person was killed. Mr. Kessler didn’t respond to a request to comment, but said on Twitter that “the people are secured both the right to free speech and the right to bear arms by the United States constitution. The idea that Charlottesville would hire attorneys to take away those rights is reprehensible.” —Del Quentin Wilber House official. Mr. Trump told The Wall Street Journal in July that he was also considering his top economic adviser, Gary Cohn, for the Fed job. People familiar with the president’s thinking told the Journal last month that he was unlikely to nominate Mr. Cohn. The president’s pick is subject to Senate confirmation, a process that all four candidates have gone through in the past, some of them multiple times. Ms. Yellen was con- STUDIO Continued from Page One leashed a storm of criticism at the company for being in business with Mr. Weinstein, the former Weinstein Co. co-chairman who was ousted over the weekend amid numerous allegations of sexual harassment. Isa Dick Hackett, a producer on the Amazon program “The Man in the High Castle,” said in an interview Thursday that Mr. Price made crude remarks toward her in July 2015 while the two were on their way to a party and then continued to make lewd suggestions to her at the event. Reached by phone, Mr. Price declined to comment. Mr. Price allegedly boasted about his genitalia to her in a car and later at the party whispered in her ear that they should engage in a specific sex act, she said. Ms. Hackett first publicly accused Mr. Price of such behavior to the Hollywood Reporter. Ms. Hackett the next day after the 2015 incident reported firmed most recently when she became Fed chairwoman in 2014; Mr. Powell was confirmed in 2014; Mr. Warsh was confirmed when he joined the Fed in 2006; and Mr. Taylor was confirmed in 2001 to serve as Treasury undersecretary for international affairs. Among the four main contenders, Mr. Trump will have his choice of two contrasting views on monetary policy. One pair, Ms. Yellen and Mr. Powell, have advocated easymoney policies and favored a it to other executives at Amazon, and an outside investigator contacted her as part of an inquiry, she said. Ms. Hackett said she never received an explanation as to the results of the investigation. In a statement to The Wall Street Journal, Ms. Hackett said, “it would be wonderful if companies could lead by example by establishing a zero-tolerance policy for harassment.” She said she was inspired by the women who came forward to speak out about Mr. Weinstein and hoped that sharing her story “inspires others, particularly those who cannot speak out for themselves.” Amazon is developing two television series that would be co-productions with Weinstein Co. In addition, Weinstein Co. earlier this year purchased a script written by Mr. Price’s fiancée, Lila Feinberg. The Amazon executive had previously pressured staffers at his company to buy the script, before a conflict-of-interest review caused the company to drop the project, called “12 Parties,” according to Amazon Studios employees. TV University Receives $30 Million Donation Note: 3Q is estimated. Includes satellite, U-verse and DirecTV Now Source: the company Continued from Page One cord-cutters threaten a broad array of companies that have until recently counted on traditional TV bundles for profit growth. Cable giant Comcast last month said it also expects to lose subscribers in the third quarter, partly because of cordcutting customers swapping cable subscriptions for more affordable online substitutes. Traditional pay-TV services tend to be more profitable for providers than streaming substitutes. Comcast shares fell 3.9%. Shares of media companies also fell. AMC Networks Inc. lost 6.8%, Viacom Inc. declined 2.5% and Walt Disney Co. slid 1.6% on Thursday after Guggenheim Se- gradual approach to raising interest rates to support a fragile economic recovery. Mr. Taylor and Mr. Warsh have criticized the Fed’s aggressive monetary easing, and called for changes in how the central bank sets policy. It isn’t clear in which policy direction the president is leaning. As a candidate, Mr. Trump criticized the central bank and Ms. Yellen, saying she kept interest rates too low. But he also told The Wall Taken together, the 22 fires ignited in Northern California between Sunday and Wednesday would amount to KEVIN WARSH Mr. Warsh, a former Morgan Stanley executive who served on the Fed board during the financial crisis, has positioned himself as a conservative proponent of tighter monetary policy. the third-deadliest fire in California since at least 1923, according to state records. A U.S. News article Thursday about the wildfires incorrectly said they would amount to the second-deadliest fire in the state since that time. House Republicans released a bill late Tuesday night that would provide $36.5 billion in emergency funding for hurricane and wildfire relief, and extend credit to Puerto Rico. In some editions Thursday, a Page One What’s News item incorrectly said the bill would provide $36.5 billion in relief to Puerto Rico. Wal-Mart Stores Inc. executives said Tuesday that online grocery pickup will be offered at 2,000 U.S. stores by the end of the fiscal year ending Jan. 31, 2019. A Business & Finance article Wednesday about the retailer incorrectly said the service would be available at those stores by the end of 2017. In Illinois, the Cook County Board of Commissioners finance committee Tuesday voted 15-1, with one abstention, to repeal a penny- Street Journal in July he was considering nominating her to a second term. She met with White House adviser Ivanka Trump, the president’s daughter, in July and had a 15-minute meeting with Mr. Trump in February. “I think she’s done a good job,” Mr. Trump said in the July interview. “I’d like to see rates stay low. She’s historically been a low-interest-rate person.” Mr. Trump has the opportunity to completely reshape the Fed board of governors in the coming months. There are three vacancies on the sevenmember panel, and another is set to open when Vice Chairman Stanley Fischer steps down this month. The search for Fed chief comes as the central bank is in the process of reversing the extraordinary economic-stimulus measures that it put in place during and after the financial crisis. —Michael C. Bender contributed to this article. Mr. Berman said Amazon is “reviewing our options for the projects we have with the Weinstein Co.” Weinstein Co. executives didn’t respond to questions about whether they knew Ms. Feinberg was Mr. Price’s fiancée when they bought the project. Ms. McGowan, who has been very vocal on Twitter about Mr. Weinstein, who she has said raped her in 1997, on Thursday criticized Amazon for being in business with Weinstein Co. and implored Amazon Chief Executive Jeff Bezos to cut ties with the production company. A spokeswoman for Harvey Weinstein said in a statement, “Any allegations of non-consensual sex are unequivocally denied by Mr. Weinstein.” Amazon Studios for months has been struggling with a host of problems, including low viewership for some of its signature programs, flagging employee morale, challenges shifting its strategy and criticisms from top Hollywood talent. David E. Kelley, the Emmywinning creator of “Boston Legal” and “Big Little Lies,” who also created the Amazon series “Goliath,” told The Wall Street Journal that Amazon’s entertainment business is “a bit of a ‘Gong Show.’” Shawn Ryan, the creator of “The Shield” who also worked on an Amazon program, said the company’s practices “put everything in chaos” and aren’t “artist friendly.” The suspension of Mr. Price is the latest fallout from the Harvey Weinstein scandal that has preoccupied Hollywood for the last several days. Since disclosures in the New York Times and New Yorker of multiple allegations of sexual harassment and assault by the movie mogul, other stars have come forward to share their own stories or to distance themselves from Mr. Weinstein. curities analyst Michael Morris downgraded the stocks. “We expect pressure on subscriber trends and audience size to continue for the foreseeable future” across the sector, he wrote. Content providers, like AMC, Viacom and Disney, built their TV businesses off the fees from big bundles of channels, and a decline in traditional pay-TV subscribers means less money for channel owners, which are typically paid per subscriber. In a sign that it is getting tougher for smaller cable channel owners, Viacom’s fee negotiations with Charter Communications have stalled—despite the fact that it has already offered a price the company says would lower subscribers’ bills. The standoff is in part because of declining ratings and what MoffettNathanson analyst Craig Moffett called the “ravages of cord-cutting.” Some of AT&T’s subscriber losses in the latest quarter resulted from the recent string of hurricanes, a challenge executive John Stankey mentioned last month at a Bank of America Merrill Lynch investor conference. “Customers who obviously lose a home make a decision to discontinue service,” he said. Hurricanes Harvey and Irma ruined thousands of homes in Texas and Florida, respectively. Wireless carriers are still assessing the full extent of the destruction Hurricane Maria left in Puerto Rico. But natural disasters couldn’t account for all of the problems in the video business. AT&T also tied the decline to “heightened competition in traditional pay TV markets and over-the-top services” as well as “stricter credit standards.” AT&T had 25.2 million video subscribers at the end of the second quarter. The company declined to provide additional comment. Many online-TV bundles like DirecTV Now and Sling TV from Dish Network Corp. mimic video packages cable and satellite providers offer, but tend to be less expensive and less profitable. AT&T is looking to expand its entertainment business with a proposed takeover of Time Warner Inc., which would add HBO, cable channels like CNN and the Warner Bros. film studio. The transaction, worth about $85 billion when it was announced last October, is being reviewed by Justice Department antitrust officials. —Keach Hagey contributed to this article. Roy Price was suspended as head of Amazon’s entertainment studio. CORRECTIONS AMPLIFICATIONS Regarding House lawmakers’ plans to release Facebook Inc. ads that Russian groups bought during the 2016 presidential race, Rep. Mike Conaway (R., Texas) on Wednesday said: “My personal advice is that we’ll do it as quick as we can.” In some editions Thursday, a U.S. News article about those plans incorrectly quoted Rep. Conaway as saying: “My personal bias is that we’ll do it as quick as we can.” JANET YELLEN Picking Ms. Yellen would signal confidence in her handling of central bank policy and the economy, including her slow and cautious unwinding of the Fed’s crisis-era stimulus policies. It would also follow the tradition in recent decades of a new president reappointing the incumbent Fed leader. Fed Chairwoman Janet Yellen is in the running to continue as the head of the U.S. central bank. BILL & MELINDA GATES Friends of Bill and Melinda Gates donated $30 million to name a computer-science building at the University of Washington after the Microsoft Corp. co-founder and his wife, the school said Thursday. Microsoft President Brad Smith is leading the fundraising campaign for the building, which will total $110 million. The $30 million comes from a group of tech giants, including Amazon.com Inc. CEO Jeff Bezos and Charles Simonyi, architect of Microsoft Word. —Douglas Belkin JOHN TAYLOR Mr. Taylor, a longtime adviser to Republican presidents and presidential candidates, has been an outspoken opponent of the Fed’s easy-money policies adopted to stimulate the economy during and after the financial crisis. RICHARD SHOTWELL/INVISION/ASSOCIATED PRESS U.S. WATCH JEROME POWELL A Powell-led Fed would likely continue Ms. Yellen’s gradual approach to raising rates and reducing the bond portfolio very gradually, but have a lighter touch on financial regulation. President Donald Trump has said he will soon decide whom to nominate to run the Federal Reserve when current Fed Chairwoman Janet Yellen’s term expires in February. He has said he is considering offering her a second term, and he has discussed the job with at least three other candidates. ANDREW HARRER/BLOOMBERG NEWS WASHINGTON—President Donald Trump is nearing a decision on whom to pick to lead the Federal Reserve, and met Wednesday with one of four candidates, according to people familiar with the matter. Mr. Trump met with Stanford University economist John Taylor, a White House official said. Mr. Taylor has criticized the central bank’s easy-money stimulus policies since the financial crisis and pushed for the adoption of a mathematical formula to guide the Fed’s interest-rate decisions. The president met late last month with former Fed governor Kevin Warsh and current Fed governor Jerome Powell to discuss the job. Janet Yellen, whose fouryear term as Fed chairwoman expires in early February, is also among the final contenders, according to people familiar with the matter. “There is still ongoing interviews,” White House Chief of Staff John Kelly told reporters Thursday about the search for a Fed leader. “All of the people that have been in to interview have been really first-round draft choices, and we have more to come.” Treasury Secretary Steven Mnuchin and Vice President Mike Pence also attended the interview with Mr. Taylor, according to the White Candidates Differ Over Bank’s Path THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) an-ounce sweetened-beverage tax. The repeal was made official Wednesday after another vote by the board. A U.S. Watch article and headline Wednesday about the vote incorrectly said the tax was repealed on Tuesday. The Panama Canal uses a mathematical formula to calculate ship capacity; one Panama Canal net ton is equivalent to 100 cubic feet of capacity. A graphic accompanying a Business & Finance article Monday about the canal incorrectly said the tonnage chart was measured in gross tonnes. Readers can alert The Wall Street Journal to any errors in news articles by emailing firstname.lastname@example.org or by calling 888-410-2667. Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Published daily except Sundays and general legal holidays. Periodicals postage paid at New York, N.Y., and other mailing offices. Postmaster: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of the Americas, New York, N.Y. 10036. 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Friday, October 13, 2017 | A3 * * * * U.S. NEWS Fires Rage On Amid Search for Missing Residents brace for new evacuations as blazes shift direction; death toll hits 31 NAPA, Calif.—The suitcases were lined up at the door Thursday morning at the home where Dan Barrango— along with his wife, son, mother-in-law and 90-year-old BY BYRON TAU WASHINGTON—A New York Republican used his public office to benefit a biotechnology company in which he is a major investor and board member, according to a new report from a nonpartisan agency that investigates allegations of wrongdoing by members of Congress. The Office of Congressional Ethics also said Rep. Chris Collins may have shared nonpublic information about Innate Immunotherapeutics Ltd. with other investors. In a report released Thursday, the ethics office said it found “substantial reason” to believe both allegations and voted unanimously to send the case to the House Ethics Committee for further investigation. The office said the conduct may have violated federal law. An lawyer for Mr. Collins said in a letter to the office that the New York Republican “has done nothing improper” and praised his “cooperation and candor” with the investigation. In its report, the Office of Congressional Ethics said Mr. Collins sent updates to investors about Innate drug trials that the company hadn’t yet made public and that he visited the National Institutes of Health to discuss the clinical trial of an Innate drug. “If Rep. Collins shared material nonpublic information in the purchase of Innate stock, then he may have violated House rules, standards of conduct, and federal law,” the office wrote. Using public office to benefit a company is a violation of House ethics rules, the report said. Mr. Collins, one of the closest allies of President Donald Trump in the House, is a former biotech entrepreneur and business executive. According to his 2016 financial disclosure report, Mr. Collins held a stake in Innate valued at the time between $25 million and $50 million. In a statement Thursday, Mr. Collins denied any wrongdoing. His attorney said the congressman turned over 2,800 pages of documents and gave sworn testimony to investigators. Firefighters began to establish containment lines around some of the large fires on Thursday, but two larger fires had already merged into one monstrous inferno, officials said. State officials warned that low humidity and high winds could continue to push flames in all directions, keeping residents on alert and on the move. “Our fires are going to continue to burn erratically,” said Ken Pimlott, chief of the state’s firefighting agency. “They have the potential to shift in any direction at any time.” More than 191,000 acres have burned, and more than 3,500 structures have been destroyed. Roughly 172,000 additional homes in the Napa and Santa Rosa metropolitan areas were at risk, with an estimated cost to rebuild of $65 billion, according to a CoreLogic Inc. report. The constant movement of residents—and damage to cell towers, which has compromised communication— has left hundreds of people unable to locate their loved ones. Local officials say they expect many of those reported missing will turn up. Officials also said they expect the death toll to keep rising. Dozens of detectives are currently investigating missing-person cases in Sonoma County, where 17 bodies have already been found. Cadaver dogs have also been brought in, but many of the burn areas remain inaccessible. “Identification [of bodies] is going to be hard,” said Robert Giordano, the Sonoma County sheriff. “We have found bodies that were almost completely intact, and we have found bodies that were nothing more than ash and bones,” he said. Maps of Northern California were covered in red on Thursday, indicating fires burning from Napa Valley to the north- ern reaches of the state. More than 8,000 firefighters were working to contain them, with resources pouring in from at least eight other states. Crews were being moved from one fire to another as the winds shifted and containment lines were dug. For many residents, the decision to leave is a painful one, because they know they may not be allowed to return for days or even weeks. —Laura Kusisto contributed to this article. House Passes Bill to Aid Hurricane Victims BY KRISTINA PETERSON AND NATALIE ANDREWS WASHINGTON—The House of Representatives on Thursday passed legislation that would provide $36.5 billion in disaster relief for victims of recent hurricanes and wildfires, as well as emergency credit to help Puerto Rico keep its government functioning. The 353-69 vote came hours after President Donald Trump questioned in Twitter posts how long the federal commitment to the island should last and suggested that Puerto Rico had mismanaged its finances. Congressional leaders of both political parties defended the need to send resources to the U.S. territory, which was devastated by two hurricanes this summer. Most of the island still lacks electric power. “ ‘Puerto Rico survived the Hurricanes, now a financial crisis looms largely of their own making.’ says Sharyl Attkisson,” Mr. Trump tweeted Thursday morning, referring to a television journalist with Sinclair Broadcasting. “We cannot keep FEMA, the Military & the First Responders, who have been amazing SHANNON STAPLETON/REUTERS Lawmaker Is Focus Of Ethics Report More than 3,500 homes and other structures have been destroyed and 191,000 acres burned by the California wildfires this week. A home in Puerto Rico damaged by Hurricane Maria. The island was devastated by recent storms. (under the most difficult circumstances) in P.R. forever!” Mr. Trump said, using shorthand for the Federal Emergency Management Agency. A FEMA spokesman said Thursday that the agency still has personnel at work in Louisiana supporting local and state recovery efforts dating back to stances of each natural disaster. House Speaker Paul Ryan (R., Wis.) said it was the federal government’s responsibility right now to respond to the humanitarian crisis in Puerto Rico, but added he wanted to see the island become more self-sufficient. Mr. Ryan will be visiting Hurricane Katrina in 2005. FEMA personnel are also supporting New York’s and New Jersey’s continuing recovery from superstorm Sandy of 2012. The spokesman said the agency aims to foster recoveries that are as swift as possible, and that the length of their support varies based on the circum- Puerto Rico on Friday. At a White House briefing, White House Chief of Staff John Kelly was asked whether Mr. Trump believed Puerto Ricans were American citizens deserving of the same access to federal aid as Texans and Floridians. He said, “Yes.” The island was in financial peril before the storms Maria and Irma hit. Puerto Rico and its agencies owe more than $70 billion to creditors. In May, it was placed under court protection in what amounted to the largest-ever U.S. municipal bankruptcy. Democrats objected to the tone of Mr. Trump’s tweets, saying the posts didn’t sufficiently acknowledge the magnitude of the disaster gripping Puerto Rico. The House bill would provide $18.7 billion for FEMA’s disaster-relief fund, $16 billion to replenish the nation’s flood-insurance program and $576.5 million for wildfire efforts. The bill would give Puerto Rico access to a $4.9 billion low-interest Treasury Department loan to help the territory avoid a government shutdown. The Senate is expected to take up the bill early next week. MGM Disputes Police Timeline of Shooting BY CHRIS KIRKHAM AND ZUSHA ELINSON MGM Resorts International Inc., the owner of the Mandalay Bay Resort and Casino, is officially disputing the police account of when a casino security guard was shot by gunman Stephen Paddock. The wounding of security guard Jesus Campos has emerged as a pivotal event in the timeline of how police responded to the Oct. 1 mass shooting in which Paddock killed 58 people and injured nearly 500 more. Initially police credited Mr. Campos with distracting Paddock in the midst of the shooting, saying he arrived on the 32nd floor of the hotel to check an unrelated alarm. Paddock fired on the guard through the door, wounding him in the leg. On Monday, Sheriff Joseph Lombardo of the Las Vegas Metropolitan Police Department changed the timeline, saying Mr. Campos was shot nearly six minutes before Paddock began JOHN LOCHER/ASSOCIATED PRESS friend—had taken refuge from the wildfires. They were prepared to leave at a moment’s notice. Again. More than 20 major fires continued to burn across Northern California, sending tens of thousands of people fleeing first in one direction, then sometimes in another as the winds shift and the flames bear down. The fires are expected to burn for weeks, turning California’s iconic wine region into a gantlet of dangers where residents are forced to quickly make life-or-death decisions— at times without access to the latest information as cell towers remain damaged by the fires. Mr. Barrango and his family had already evacuated his own home. Their friend Shane Brady had already lost his house. If the Barrangos had not roused him, they were sure Mr. Brady would be gone as well. If the winds pick up again, Mr. Barrango said, “We are getting the hell out of Dodge completely.” Since the blazes began Sunday night, at least 31 people have been killed and 400 more have been reported missing and aren’t accounted for. REUTERS/JIM URQUHART PUBLISHED CREDIT: JIM URQUHART/REUTERS By Alejandro Lazo, Erin Ailworth and Ian Lovett A broken window is visible in the Mandalay Bay Resort and Casino on the Las Vegas Strip last week, after a deadly shooting. firing on the crowd. MGM on Wednesday said the company is “now confident that the time stated in this report is not accurate.” A spokeswoman for the Las Vegas Metropolitan Police Department declined to comment on MGM’s statement. The company said Paddock started firing on the crowd within 40 seconds of Mr. Campos reporting to his superiors that he was shot. The MGM statement added that Las Vegas police already happened to be on site with other Mandalay Bay security officers when Mr. Campos called to report the shooting, and said police and security “immediately responded to the 32nd floor.” A person familiar with Mandalay Bay operations said the time police cited for when the security guard was shot, 9:59 p.m., was listed in an initial statement given after the shooting. That time hadn’t been verified or cross-referenced with video surveillance and audio tapes documenting when Mr. Campos called in that he was shot, the person said. “It was someone’s recollection of time, but there hadn’t been an opportunity to check it,” the person said. The casino doesn’t know how long it took for Mr. Campos to call in the shooting, the person said, but officials believe it was “very, very quickly.” The discrepancy is crucial because a six-minute gap between the shooting of the security guard and the shooting of the crowd raises questions about whether more could have been done to prevent Paddock from firing. One central question regarding the timeline is what Mandalay Bay security did after Mr. Campos called in that he was shot on the 32nd floor. Accord- ing to police radio communications reviewed by The Wall Street Journal and provided by Broadcastify, a firm that collects live audio from public agencies, the first mention of the shooting on police radio occurred at about 10:06 p.m., a minute after Paddock began firing on the crowd. The communications don’t reference a call from Mandalay Bay security until about 10:24 p.m., when a dispatcher refers to Mandalay Bay security reporting “shots fired on 29 and 32nd levels.” Authorities haven’t released full 911 records from that night, citing the open investigation into the shooting. The person familiar with Mandalay Bay operations said there was some confusion among officers on the outside about where exactly the gunfire was coming from. But officers inside the casino when Mr. Campos called in the shooting knew where to go “and they were up on that floor,” the person said. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A4 | Friday, October 13, 2017 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X ****** THE WALL STREET JOURNAL. U.S. NEWS Partial State Tax Benefit Discussed BY RICHARD RUBIN AND SIOBHAN HUGHES WASHINGTON—House Republicans are moving toward an agreement that preserves part of the federal deduction for state and local taxes, backing away from a controversial plan to abolish it. The aim, lawmakers say, is to keep the break for middleincome households while repealing it for higher-income households. One idea is to cut off the deduction for households whose incomes exceed a certain level. The challenge will be finding agreement on where that dividing line should be. If it’s too low, the change won’t win support from lawmakers representing states like New York and New Jersey with high taxes and living costs. If the dividing line is too high, changing the deduction won’t generate revenue Republicans are counting on to fund lower tax rates and an expanded child tax credit. Other options under consideration include allowing deductions for property taxes but not for state and local income taxes, or capping the overall amount of deductions households can take on state and local taxes. “I’m not fixated on one solution—I’m fixated on making sure that the people of my state don’t finance tax benefits elsewhere,” said Rep. Tom MacArthur (R., N.J.), who comes from a high-cost district, after a late Thursday meeting with House Republican leadership. The unresolved question is one of many challenges Republican leaders face as they try to muster votes to pass a major tax bill this year. They face other debates and tradeoffs on how much to expand child tax credits, rules determining which individually owned businesses get a 25% top tax rate, how to limit corporate deductions on interest, and where to set the top tax rate for individuals. House Republicans want to move fast. They plan to release a full bill within weeks, pass it by the end of November and send final legislation to President Donald Trump by the end of the year. Republicans from states including New York, New Jersey and California said they were making progress on an agreement after their Thursday Who Gets the Break The bulk of the state and local tax deduction goes to high-income households. State and local income, sales, Household Real estate and personal property tax income tax deduction deduction Below $50,000 $50,000– $100,000 $0.6 billion $5.3B $0.4 billion $4.6B $100,000– $200,000 $14.0B $200,000– and over $13.4B Source: Joint Committee on Taxation meeting with House leaders. Rep. Peter King (R., N.Y.) suggested earlier this week that $400,000 in annual household income is the right dividing line for state and local deductions in his high-cost Long Island, N.Y., community. Eliminating the deduction could hurt households that consider themselves middle class in expensive places like Mr. King’s, because their high incomes are offset by a high cost of living. “Everyone’s got a different view” about the appropriate $15.5B $49.3B THE WALL STREET JOURNAL. line, House Ways and Means Committee Chairman Kevin Brady (R., Texas) said earlier this week. The view depends in part on where people live. Democrats, who represent most of the high-tax areas, are united in defense of the break. Senate Minority Leader Chuck Schumer of New York says no compromise is acceptable. Entirely repealing the state and local deduction, including property taxes, would generate about $1.3 trillion in added revenue for the federal government over a decade, a WASHINGTON WATCH windfall that could help Republicans push overall tax rates down steeply. Currently, about 30% of households claim the state and local deduction, available only to those who itemize deductions instead of taking the standard deduction. Taxpayers can deduct property taxes as well as either income or sales taxes. Most who get the benefit aren’t high-income households, but the dollar value of the tax break is concentrated at the top of the income scale. For real estate taxes, households with income over $200,000 make up 18% of those who claim the deduction but get 40% of the overall benefit, according to the congressional Joint Committee on Taxation. The deduction for income and sales taxes is even more concentrated among high-income households, with 71% of the benefit going to those above $200,000 in income. Taken together, that suggests that a $200,000 line could cut the revenue from repeal roughly in half. Republicans can lose just 22 members on a House vote if all Democrats are opposed. IMMIGRATION Tougher Asylum Process Is Planned Attorney General Jeff Sessions said the administration wants to overhaul a variety of laws and regulations to make the process of applying for asylum in the U.S. more difficult, and to crack down on what he described as rampant fraud within that realm of the immigration system. People seeking asylum typically must first establish they are fleeing their home countries because they have “credible fear” of persecution or violence. “The system is being gamed,” Mr. Sessions said Thursday. “The credible-fear process was intended to be a lifeline for persons facing serious persecution. But it has become an easy ticket to illegal entry into the United States.” Immigration advocates criticized the assertions of rampant fraud and wrongdoing. —Alicia A. Caldwell HURRICANE HARVEY EPA Orders Cleanup At Toxic Waste Site Kelly Defends Moves, Says He’s Not Frustrated BY MICHAEL C. BENDER WASHINGTON — White House Chief of Staff John Kelly defended his moves to manage the West Wing and better control access to President Donald Trump, while also brushing off talk that he was frustrated in the post. Mr. Kelly said he has imposed more organization on the West Wing but isn’t running operations with an “iron hand” or restricting the president’s ability to speak with advisers and friends. He said he was organizing more group meetings, rather than “onesies and twosies,” to better brief the president on important matters. Mr. Kelly, who joined the Trump administration as Homeland Security secretary and then became chief of staff in July, poked fun at reports that he has been unhappy in his new job. “I would just offer to you that although I read it all the time pretty consistently, I’m not quitting today,” he told reporters at a White House briefing Thursday. Describing his job, he said he was “just putting some organization to it, with a smile on my face.” In his first months as chief of staff, Mr. Kelly has been photographed at Mr. Trump’s events with a stern look on his face, which he said has been misinterpreted. “You guys with the cameras always catch me when I’m thinking hard,” he said. “I’m not frustrated.” Asked about Mr. Trump’s active presence on Twitter, Mr. Kelly said: “I was not brought in to control him….I was not brought to this job to control anything but the flow of information to our president, so he The Trump administration ordered two big corporations this week to pay $115 million to clean up a Texas toxic waste site that may have spread dangerous levels of pollution during flooding from Hurricane Harvey. Environmental Protection Agency Administrator Scott Pruitt signed a directive Wednesday requiring International Paper and McGinnis Industrial Maintenance Corp., a Waste Management Inc. subsidiary, to excavate 212,000 cubic yards of contaminated sediments from the San Jacinto River Waste Pits site. —Associated Press can make the best decisions.” In the briefing, Mr. Kelly also addressed the subjects of nuclear weapons and North Korea. Mr. Kelly made another call for diplomacy to end the crisis in North Korea. “Let’s hope diplomacy works,” Mr. Kelly said, when asked to about the possibility of war with North Korea, adding that “we think the threat is manageable.” Trump Has Range of Options to Chip Away at Health Law BY STEPHANIE ARMOUR HEALTH Continued from Page One one lawmaker Thursday that he is feeling pressure to end the payments, known as cost-sharing reduction payments, because they are the subject of a lawsuit, according to the people familiar with the matter. The administration is scheduled to update the court on the status of the case on Oct. 30. But, according to these people, Mr. Trump also told the lawmaker that he would support preserving the payments if a bipartisan deal being led by Sens. Lamar Alexander (R., have insurance or pay a penalty, according to industry groups briefed by agency staffers. Taken together, the administration could poke holes in the ACA’s central directive that insurance policies offer a minimum set of benefits to all consumers regardless of health history. The administration’s actions could mean that insurers offering plans in the individual ACA market—largely Blue Cross and Blue Shield companies—and insurers focused on Medicaid such as Centene Corp. and Molina Healthcare Inc. could risk losing healthy enrollees who might be drawn to skinnier and cheaper private options allowed under new rules. Older and sicker consumers would see premiums increase. In signing the executive order Thursday, Mr. Trump cast it as the first of many steps he intends to take dismantle the ACA. “For a long period of time—since I’ve started running and since I became president of the United States—I just keep hearing, ‘Repeal and replace, repeal and replace,’ ” Mr. Trump said. “Well, we’re starting that process, and we’re starting it in a very positive manner.” The president is limited in what he can do to undo the ACA, since many of its provisions are written into law, including a Medicaid expansion and the requirement that insurers on the exchanges cover people with pre-existing conditions. But he can use actions and agencies to weaken regulations that make the health law and its exchanges work. “You can’t totally destroy it, but the administration can do an awful lot to undermine it,” said Timothy Jost, a professor at Washington and Lee University School of Law. The drive to dismantle the law drew praise from Republicans who say it has hurt consumers. They said Mr. Trump is being careful not to step outside the constitutional boundar- Tenn.) and Patty Murray (D., Wash.) comes together. The senators have been working on legislation that would maintain the payments to insurers, which Democrats want, while also meeting a Republican goal of giving states more flexibility in how they implement the ACA. The White House had earlier suggested Mr. Trump wouldn’t sign such a deal, but his comments Thursday suggest he has changed his thinking. Democrats responded angrily to the announcement. “It is a spiteful act of vast, pointless sabotage leveled at working families and the middle class in every corner of America,” said Senate Minor- ity Leader Chuck Schumer (D., N.Y.) and House Minority Leader Nancy Pelosi (D., Calif.) in a joint statement. “Make no mistake about it, Trump will try to blame the Affordable Care Act, but this will fall on his back and he will pay the price for it.” The fate of the payments, which allow insurers to offset subsidies to low-income consumers, has been the subject of intense speculation among insurers and in the healthcare industry more generally. Insurers have said they may exit the ACA exchanges, or marketplaces, in 2019 if the payments are discontinued, or possibly raise premiums further. The payments have been made on a month-to-month basis, with the next distribution expected around Oct. 21. A number of insurers have said they were worried that Mr. Trump would end the pay- Mr. Trump’s interest in the bipartisan talks reflects his desire to make changes to health care that appeal to both parties, people familiar with his thinking said. The president has also reached out to Mr. Schumer about a bipartisan path forward on health care. A federal judge in 2016 ruled the cost-sharing payments were improper after House Republicans filed a lawsuit in 2014 to block them, arguing that they hadn’t been approved by Congress as necessary. The case has been in a holding pattern, with regular updates to the court every three months. Mr. Trump had warned the payments would be halted af- ter Republicans in the Senate failed in their attempts to overturn the ACA. Thursday’s developments put further pressure on Democrats to make progress on the bipartisan talks, which some Republicans have also backed as a way to help shore up the individual insurance markets and give states more flexibility in the ACA’s implementation. A final deal on the bipartisan talks is close, according to some of those involved. Ms. Murray made a number of concessions requested by Republicans just before the last proposal to repeal the ACA was pulled. —Kristina Peterson contributed to this article. ALEX WONG/GETTY IMAGES President Donald Trump’s executive order on health care issued Thursday marked the first major salvo in what the White House promises will be an extensive, targeted campaign to unravel the Affordable Care Act administratively. More steps are expected in coming months that seek to accomplish through executive action much of what a stalled congressional repeal effort failed to achieve, White House officials said. Thursday’s executive order paves the way for a proliferation of less-expensive insurance plans with fewer benefits for those who buy their insurance individually, rather than getting it through an employer. A range of next steps are on the table, but White House officials said no final decisions have been made. Other administration actions could include measures to curb the consolidation of hospitals, doctors and insurers, which can drive up prices. Eric Hargan, acting secretary of health and human services, will spearhead an analysis of such consolidation, with contributions from the Federal Trade Commission, Labor Department and Treasury Department, the White House said Thursday. White House officials said, for example, that there are regions of the country that have only one insurer offering plans on the ACA exchanges, and that could amount to a monopoly. The administration might also weaken the Obama-era requirement that most people ies of executive authority. Democrats and some insurance industry leaders say Mr. Trump is taking actions that will harm older and sicker people who most need coverage. “It also almost guarantees the eventual collapse of our health insurance markets across the country,” said Washington State Insurance Commissioner Mike Kreidler, a Democrat. These opponents are gearing up to fight back . California Attorney General Xavier Becerra, a Democrat, said the state is prepared to go to court to protect the ACA. Potential courtroom challenges aside, Mr. Trump’s directives could take months or longer to work their way through the rule-making process. Thursday’s executive order directs a trio of federal agencies to take action that would weaken the effect of ACA regulations. It could lead to the lifting of ACA restrictions on a type of short-term insurance policy, for example, that could provide fewer health benefits than mandated under the ACA, also called Obamacare. The Obama administration limited those policies to less than three months, with no ability to renew after that time, because of concerns they were siphoning off healthier consumers from the ACA marketplaces. The short-term plans don’t have to meet the ACA’s minimum benefit requirements, such as covering maternity care, and they can refuse people with pre-existing conditions. —Michelle Hackman, Anna Wilde Mathews and Siobhan Hughes contributed to this article. President Trump signed the executive order directing regulatory changes to the health-care law in the White House on Thursday. The payments allow insurers to offset subsidies to lowincome consumers. ments this month because a Republican effort in Congress to repeal much of the ACA and replace it with a more conservative approach recently collapsed. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | A5 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A6 | Friday, October 13, 2017 * *** THE WALL STREET JOURNAL. WORLD NEWS Hostage Family Freed in Pakistan Raid American-Canadian couple was first taken in 2012; U.S. provided intelligence assistance BILL GORMAN/ASSOCIATED PRESS The five-year ordeal of an American-Canadian couple held by militants came to a startling end when Pakistan forces used U.S. intelligence to free them and their three young children as they were being driven across the mountainous border between Pakistan and Afghanistan, U.S. and Pakistan officials said Thursday. By Saeed Shah in Islamabad and Dion Nissenbaum in Washington Pakistan forces tracked the militants as they drove the family from Afghanistan into Pakistan, shot out the tires of the car and secured freedom for American Caitlan Coleman, her Canadian husband Joshua Boyle, and three children born in captivity, Pakistan officials said. The couple, who were expecting their first child at the time, was abducted in 2012 while backpacking in Afghanistan. President Donald Trump hailed the successful joint operation as a sign that Pakistan, a wary ally in South Asia, is now willing to do more to help the U.S. bring the long war in The family of Caitlan Coleman in 2014. Ms. Coleman was kidnapped with her husband, Joshua Boyle, in Afghanistan in 2012. Afghanistan to an end. “They worked very hard on this, and I believe they’re starting to respect the United States again,” he said. “It’s very important. I think right now a lot of countries are starting to respect the United States of America once again.” News of the release came as top U.S. officials arrived in Pakistan for high-level talks meant to open a cooperative new chapter between the countries. Mr. Trump an- nounced a new strategy in August for Afghanistan that demanded more action from Pakistan against militants based there who conduct cross-border operations. Intelligence sharing is a major point of contention in the relationship. U.S. officials are wary of sharing information with Pakistan, which they fear is passed onto militants so they can evade capture. Former administration officials said this was the first time that the U.S. had actionable intelligence on the family. “We gave them intel on where they were going to be,” said one U.S. official. The Pakistan army carried out its operation on Wednesday after receiving a U.S. intelligence tip that the Haqqani network was moving the family across the border from Afghanistan into Pakistan, according to Pakistani security officials. Some U.S. officials expressed skepticism about the Pakistani military’s version of events, suggesting the family’s freedom was the result of diplomatic efforts and a quiet arrangement between Pakistan and the militants holding the family. But Pakistan said it was a military rescue operation. Parts of Kurram, where the Pakistan army says the operation took place, is a refuge for the Haqqani network, accord- Turkey-U.S. Clash Emboldens Russia and Iran TRUMP Continued from Page One elite military branch, as a terrorist organization, a step that has been the subject of internal administration debates, according to people familiar with the deliberations. Iran has vowed a “crushing” response if the U.S. takes that step. The venue for Mr. Trump’s remarks was the subject of debate as well. Officials said they had discussed the possibility of the speech taking place in front of the unoccupied Iranian Embassy in Washington, although that plan was set aside. Mr. Trump’s speech will mark the end of a months-long Iran policy review by the administration and begin an uncertain process under which Congress has 60 days to consider on an expedited basis reinstating sanctions that had been lifted under the terms of the nuclear accord. distrust is spilling into business ties, into investment decisions, and even into the NATO framework.” The freeze isn’t just between the U.S. and Turkey: Ankara’s relations with European nations, notably Germany, have frayed just as badly. T urkey’s alliance with the U.S. came under strain during President Barack Obama’s administration. At the time, the U.S. chafed at President Recep Tayyip Erdogan’s systematic assault on democratic freedoms and civil rights. Turkey, meanwhile, viewed as an existential threat U.S. support for Kurdish militias combatting Islamic State in northern Syria. Following a failed military The president will speak in advance of a Sunday deadline to inform Congress about whether or not Iran is complying with the nuclear deal, under the terms of a U.S. law passed in 2015 meant to provide congressional oversight. That deadline, and Mr. Trump’s decision, have no effect on U.S. adherence to the nuclear accord, unless Congress reinstates the sanctions. For now, the Trump administration’s move will allow the president to criticize the deal while also providing some assurances to European allies that the U.S. won’t walk away from it. The administration has been working with Congress to amend U.S. legislation that provides for congressional oversight. Several proposals for changes to the legislation exist. One draft was offered by Senate Foreign Relations Committee chairman Sen. Bob Corker (R., Tenn.) and another by Sen. Tom Cotton (R., Ark.), people coup against Mr. Erdogan last year, many senior Turkish officials have concluded elements of the U.S. establishment were sympathetic to the plotters’ aims or actively colluding with the putsch, a claim denied by Washington. Mr. Erdogan entertained high hopes for a reset under President Donald Trump, who refused to criticize Turkey’s human-rights record. Such optimism belied the accumulating poison in the relationship. In Syria, instead of reversing course as Ankara had expected, the White House essentially doubled down on the Obama policy of arming and backing the YPG Kurdish militia that Turkey considers a front for the Kurdistan Workers’ Party, or PKK, a group that seeks to carve out a Kurdish state in Iranian President Hassan Rouhani in Tehran Wednesday familiar with the draft said. Some of the ideas in the drafts include expanding the definition of compliance with the deal to include limits on Iran’s nuclear activities under the purview of the U.N. nuclear watchdog and extending or eliminating the quarterly certification time requirement. A southeastern Turkey and that is considered terrorist by Washington and Ankara alike. Ankara was also upset with the detention of Reza Zarrab, a Turkish-Iranian businessman with ties to Mr. Erdogan who has been charged in New York with violating sanctions against Iran, and with the continuing presence in the U.S. of Fethullah Gulen, the Islamist preacher whom Turkey wants extradited for allegedly masterminding the coup attempt. Both denied wrongdoing. U.S. officials, meanwhile, were frustrated by the yearlong detention of Andrew Brunson, a Christian pastor whom Turkish officials accuse of links to the coup. Mr. Brunson denies the charges. All of this, combined with an uproar over the allegedly Turkish court this week declared a Wall Street Journal reporter guilty of engaging in terrorist propaganda through one of her articles. The Journal condemned the move and the reporter plans to appeal the decision. “This was an unfounded criminal charge and wildly inappropriate conviction that wrongly singled out a balanced Wall Street Journal report,” said Journal Editor in Chief Gerard Baker. “The sole purpose of the article was to provide objective and independent reporting on events in Turkey, and it succeeded.” Things are likely to get worse in the foreseeable future, said Sinan Ulgen, head of the Edam think tank in Istanbul. “There is no clear path to de-escalation,” he said, “and therefore we will likely find ourselves on the path to escalation.” Mr. Trump last month extended sanctions relief to Iran under the nuclear agreement, and will next face a deadline to do so in January. The European governments that helped the Obama administration negotiate the nuclear deal—the U.K., France and Germany—are preparing a formal response to Mr. Trump’s expected move, officials said. The European statement, likely to be made within hours of the U.S. announcement, will refrain from criticizing Washington and instead emphasize Europeans’ strong backing for the deal, officials said. It likely will acknowledge U.S. concerns about Iran’s regional behavior and missile tests, but stress these issues, which weren’t part of the talks leading to the nuclear deal, should be dealt with separately, officials said. As the policy review has been going on in the past several months, U.S. officials have been trying to persuade Europe to work with them to raise pressure on Iran. Europe’s trade with Iran has grown markedly since sanctions were suspended in January 2016 and dwarfs U.S.-Iranian commerce. At the same time, the quarterly deadlines for certifying Iran’s compliance have been an irritant and embarrassment for the president, officials said. Mr. Trump has twice certified Iran to be in compliance. The United Nations nuclear watchdog agency, which is charged with enforcing the deal, also has determined Iran to be in compliance, a conclusion with which Secretary of State Rex Tillerson agreed. Mr. Trump’s speech on Friday will start what officials expect to be a lengthy diplomatic process to negotiate ways to strengthen the Iran accord, first with European officials and perhaps eventually with Iran, either by revisiting the accord or by enacting related but freestanding agreements. —Laurence Norman contributed to this article. Russian President Vladimir Putin, left, with Turkish President Recep Tayyip Erdogan in Ankara last month. OFFICE OF THE IRANIAN PRESIDENCY/ASSOCIATED PRESS ISTANBUL—Here’s one measure of where Turkey stands in today’s world. Russian and Iranian citizens are free to enter without a visa. Americans, following the recent spat over the detention of a U.S. consulate employee, are essentially barred from traveling to their North Atlantic Treaty Organization ally. The unfolding breakup between Turkey and the U.S. goes far beyond that dispute. It is fueled by frustration on both sides— and is encouraged by countries most interested in such a separation, especially Russia and Iran. Even in the Syrian war, Turkey has found itself in a convergence of aims with Moscow and Tehran— and opposing U.S. goals. “This is the worst it’s been since the independence of the Turkish republic” in 1923, said Asli Aydintasbas, an Istanbul-based fellow at the European Council on Foreign Relations. “The institutional bond [with the U.S.] is really weakening and the MIKHAIL METZEL/TASS/ZUMA PRESS MIDDLE EAST CROSSROADS By Yaroslav Trofimov violent behavior of Mr. Erdogan’s bodyguards during his visit to Washington in May, has cemented a perception in the administration and Congress that attempts to mollify Turkey are pointless. Ever since the coup attempt, Turkish officials favorable to continuing cooperation with the West have been warning about the rise of the ultranationalist “Eurasianist” faction, particularly in Turkey’s security and military establishment. This current seeks to reposition Turkey into a new “Eurasian” civilizational alliance with Russia, China and Iran—and to break bonds with the West. ing to local tribesmen, after a Pakistani military operation forced the group to leave its previous base in adjacent North Waziristan. In the Afghan capital Kabul, a senior Afghan official accused Pakistan’s intelligence arm of protecting the Haqqani militants and not acting on information more than two years ago about where the couple was being held. But former U.S. officials said that Afghanistan never provided enough intelligence to pinpoint the location of the family. The former officials said that they thought the couple was probably moved back-and-forth across the Afghanistan-Pakistan border over the past five years, but they couldn’t be certain. While friends and family members celebrated the news, there were signs of last-minute glitches. U.S. officials said that the couple refused to board a U.S. military plane bound for Germany because of concerns that Mr. Boyle might be detained. Mr. Boyle previously was married to a Zaynab Khadr, the sister of a Canadian citizen, Omar Khadr, held at Guantanamo Bay for 10 years after being detained in Afghanistan in 2002 as a teenager. In an apparent effort to allay the couple’s fears, officials in Canada and the U.S. said that they were facing no risk of arrest if they came home. Palestinian Authority, Hamas to Reconcile The Palestinian Authority and Islamist movement Hamas reached an agreement to reconcile after a decade of mistrust, but offered few details on security arrangements in the Gaza Strip that had been key to negotiations. By Abu Bakr Bashir in Gaza City and Rory Jones in Tel Aviv The two sides, meeting in Cairo for talks brokered by Egypt, said on Thursday that the West Bank-based authority would by early December regain full administration of Gaza, which has been under Hamas control since 2007. The Palestinian factions will meet in the Egyptian capital in November to discuss presidential and parliamentary elections, they said. “We need this [rapprochement] to face the occupation and establish the Palestinian state,” said Azzam al-Ahmad, the authority’s representative to the reconciliation process, referring to Israeli control over the West Bank and Gaza. But the parties didn’t address the issue of whether Hamas would disarm its military wing—a crucial demand made by Palestinian Authority President Mahmoud Abbas. The militant group said last week that it wouldn’t dismantle the wing, known as the Izz al-Din al-Qassam brigades, until Palestinians had liberated Gaza and the West Bank from Israeli control. The reconciliation talks between Hamas and the Palestinian Authority are the most ambitious in the 10 years since the group wrested power from Mr. Abbas’s governing body. The factions still have to iron out the details about whether employees of Hamas or the Palestinian Authority will administer ministries in Gaza. As part of the reconciliation, the authority is expected to take over control of the strip’s borders, Mr. Ahmad said. Mr. Abbas is expected in the coming weeks to visit Gaza for the first time since 2007, Egyptian media reported. Egyptian President Abdel Fattah Al Sisi has supported and brokered the reconciliation talks. Israeli Prime Minister Benjamin Netanyahu said last week that for there to be peace Palestinians would have to recognize Israel as the home of the Jewish people, dismantle Hamas’s military wing, and cut ties between Hamas and Iran, which itself vows Israel’s destruction. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. GALLERY 19C THOMAS COLVILLE FINE ART DANIEL KATZ GALLERY SAFANI GALLERY INC A LA VIEILLE RUSSIE DANIEL CROUCH RARE GALERIE KEVORKIAN THOMAS SALIS A. AARDEWERK BOOKS MARIA KIANG CHINESE ART GALERIE SANCT LUCAS DIDIER AARON DAXER & MARSCHALL JACK KILGORE & CO., INC GALERIE G. SARTI AGNEWS GALERIE DELALANDE KOOPMAN RARE ART SHAPERO RARE BOOKS KUNSTGALERIJ ALBRICHT ALBERTO DI CASTRO J. KUGEL S. J. 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JÖRN GÜNTHER RARE BOOKS AG CAYLUS GALLERY HABOLDT · PICTURA PRIMAVERA GALLERY WALLACE CHAN HEMMERLE CHRISTOPHE DE QUÉNETAIN GALERIE CHENEL HIRSCHL & ADLER GALLERIES REZA GALERIE ERIC COATALEM OTTO JAKOB ROBILANT+VOENA COLNAGHI DE JONCKHEERE RÖBBIG - MÜNCHEN PHOENIX ANCIENT ART ERIK THOMSEN GALLERY TOMASSO VANDERVEN ORIENTAL ART AXEL VERVOORDT GALLERIA CARLO VIRGILIO & CO RUPERT WACE ANCIENT ART WARTSKI JORGE WELSH WORKS OF ART JOAN WIJERMARS ADAM WILLIAMS FINE ART LTD A6B | Friday, October 13, 2017 THE WALL STREET JOURNAL. MAKE BREAKFAST 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 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | A7 WORLD NEWS CANBERRA, Australia—A cyberattacker nicknamed “Alf” gained access to an Australian defense contractor’s computers and began a monthslong raid that snared commercially sensitive data on sophisticated U.S. weapons systems. Using the simple combinations of login names and passwords “admin; admin” and “guest; guest” and exploiting a vulnerability in the company’s help-desk portal, the attacker roved the firm’s network undetected for four months, from July to November 2016. The attack, detailed by a senior Australian intelligence official in a speech on Wednesday, was the third major breach of U.S. military and intelligence data to come to light in the past week. On Tuesday, a South Korean lawmaker said North Korean hackers had accessed a military database and stolen top-secret files, including a plan for a strike against the leadership in Pyongyang. That followed reports that hackers working for the Russian government stole details of how the U.S. penetrates foreign computer networks and defends its own. The identity and affiliation of the Australia hackers weren’t disclosed, but officials Officials say attack probably originated in China, but no secret data was lost. with knowledge of the intrusion said it was thought to have originated in China. The senior Australian intelligence official, Mitchell Clarke, told a cybersecurity conference in Sydney on Wednesday that Alf obtained around 30 gigabytes of data on Australia’s planned purchase of up to 100 F-35 fighters made by Lockheed Martin, as well as information on new warships and Boeing-built P-8 Poseidon maritime-surveillance aircraft. Boeing and Lockheed Martin declined to comment on the theft, which also included details of C-130 Hercules transport aircraft and guided bombs used by the U.S. and Australian militaries. The Chinese and U.S. embassies didn’t respond to requests to comment. Foreign Minister Julie Bishop said intelligence agencies are aware of where the attack originated but said no classified details of weapons capabilities were lost. BY BEN OTTO AND YANTOULTRA NGUI Two men gave the women accused of murdering Kim Jong Nam liquid substances to put on their hands moments before the assault in February that killed the half brother of North Korea’s dictator, police testified. A Malaysian police officer taking the stand for the second day on Thursday identified by aliases four men who prosecutors say colluded with the women to kill Mr. Kim at Kuala Lumpur International Airport on Feb. 13. Based on previous police TOKYO—Prime Minister Shinzo Abe is poised for a big victory in Oct. 22 parliamentary elections, beating back a challenge by Tokyo Gov. Yuriko Koike, according to five polls published by major Japanese news organizations. Investors welcomed the news on Thursday, viewing a continuation of Mr. Abe’s nearly five years in office as a sign of stability, in contrast to political upheaval elsewhere. The Nikkei Stock Average, which hit a two-decade high on Wednesday, continued its advance, closing up 0.35% Thursday. The five polls—by Kyodo News and the Nikkei, Yomiuri, Asahi and Sankei newspapers— all forecast that Mr. Abe’s ruling Liberal Democratic Party would easily win more than half of the 465 seats in the lower house, the more powerful of parliament’s two chambers. The five polls all found that the LDP and a smaller coalition ally together were likely to get close to 300 seats. Several said the coalition forces might even win two-thirds of the seats, the level needed to pass proposed revisions to the constitution in the chamber. Ms. Koike’s newly founded fendant, 29-year-old Doan Thi Huong of Vietnam. Mr. Wan Azirul said his information was based on statements the women made to police after their arrests in February. “Mr. Y played the role as the individual who applied a liquid on Huong’s hand,” Mr. Wan Azirul said. “Mr. Y also played the role of buying the taxi coupon for Huong.” Both Ms. Huong and Ms. Aisyah departed the airport by taxi shortly after the attack, police say. Mr. Wan Azirul also presented new security footage from airport closed-circuit television shortly before the attack showing a woman appearing to be Ms. Huong walking into the airport with the man identified as Y, and Ms. Aisyah sitting in a cafe with the man identified as Chang. Both men wore baseball caps in the videos, with their faces largely hidden from cameras. Ms. Aisyah and Ms. Huong are accused of colluding with four accomplices to murder Mr. Kim, a crime that carries the death penalty in Malaysia. Malaysian authorities have said the women acted under the direction of a team of North Koreans to kill Mr. Kim by exposing him to deadly VX nerve agent. Defense lawyers say the women thought they were filming a prank for a television show. Both have pleaded not guilty, and North Korea denies involvement. Prosecutors have not identified the four alleged accomplices, and on Thursday police used only aliases in naming them for the first time in the trial as Chang, Y, James and Hanamori. The trial goes into a weeklong recess. Mr. Wan Azirul is scheduled to resume testimony on Oct. 24, when proceedings move to the airport. A Voice of Vitriol Against Myanmar Muslims BY JAMES HOOKWAY HPA-AN, Myanmar—The Venerable Wirathu hitched up his orange robes, stepped up onto a stage on a recent Sunday and tapped the microphone. “What kind of people are these Muslims?” he barked as a crowd of 1,000 in this small town east of Yangon cheered him on. “Do they eat rice through their backsides and excrete through their mouths? They are the opposite of everything in nature.” Ven. Wirathu, the abbot of the Masoeyein monastery in Mandalay, has taken a leading role in spreading the anti-Muslim sentiment among Myanmar’s Buddhist majority that has underpinned the army’s campaign against the ethnic Rohingya minority. Since the military released Ven. Wirathu from prison in 2012 after he had served nine years of a 25-year sentence for inciting religious riots, he has traveled and taken to YouTube and Facebook to whip up resentment against the stateless group, alongside other less prominent Buddhist hard-liners. In recent weeks, the army and militias have attacked Rohingya villages, driving hundreds of thousands of people to seek refuge in neighboring Bangladesh in a campaign that Bangladesh authorities say has left 3,000 people dead. Myanmar officials have denied accounts that members of the military committed rape and murder of Rohingya and torched their villages. Civilian leader Aung San Suu Kyi hasn’t publicly challenged the generals orchestrating the clearances. In her silence, a vacuum has developed, “and the nationalists and radical monks are filling it,” said former U.S. Ambassador Derek Mitchell. Interviews with people who know Ven. Wirathu describe a man who was stung in childhood by his father’s death and came under the sway of Myanmar’s military establishment. Ven. Wirathu declined to comment for this article. The Wide Win Is Projected For Abe in Japan Vote BY PETER LANDERS AND MEGUMI FUJIKAWA identifications, at least some of those men are North Koreans who fled Malaysia on the day of that attack and who, South Korean intelligence officials said, work for ministries in Pyongyang. Investigating police officer Wan Azirul Nizam Che Wan Aziz told the courtroom that shortly before the attack on Mr. Kim in a crowded departures hall, a man identified as “Chang” spread a substance onto the hands of Siti Aisyah, a 25-year-old Indonesian defendant in the case. He said another man, identified as “Y,” did the same for the other de- Party of Hope is poised to be the second-largest force in the lower house but far behind the LDP with fewer than 100 seats, the five polls found. Analysts at SMBC Nikko Securities said in a note to investors that the poll results confirmed earlier market expectations of an Abe win and “should provide a tailwind for risk-taking in the financial markets.” However, they cautioned the publication of the poll results might hurt Mr. Abe’s party by leading its candidates to relax their guard and giving Ms. Koike’s forces an impetus for a comeback. The polls found many voters remain undecided, and forecasts of a big LDP victory might lead some of those on the fence to cast a vote for the opposition to bring greater balance to parliament. If Mr. Abe’s party keeps control of parliament and he is re-elected, he would likely continue his “Abenomics” economic policy, including promotion of ultra-easy monetary policy at the Bank of Japan. The term of BOJ Gov. Haruhiko Kuroda expires in April. As is the tradition among Japanese newspapers before national elections, each poll surveyed tens of thousands of voters. The polls didn’t provide a margin of error. A Complex Ethnic Mix The Myanmar government recognizes many ethnic groups beyond the majority Bamar, but not the Rohingya. 68% Bamar Shan 9% Kayin 7% Rakhine 4% Chinese 3% Rohingya* 2% *U.N. estimate before refugee crisis started Source: 2014 Myanmar census THE WALL STREET JOURNAL. China’s growing influence. In 2003, Ven. Wirathu began to take action on his own, Mr. Ko Than Mani said. In Kyaukse, he began handing out pamphlets accusing local Muslims of trying to take over his hometown. Shortly after, a crowd of Buddhists burned down two mosques and two people were killed. Ven. Wirathu was arrested and handed the 25-year sentence. In 2012, with Ms. Suu Kyi and other members of her political party preparing to enter parliament, Ven. Wirathu was released early. Ven. Wirathu resumed his anti-Muslim sermons. In September 2012, after communal riots erupted in Rakhine State, where Myanmar’s Rohingya population was concentrated, he led a march of monks through Mandalay to support the military’s plans to send the Rohingya to a third country. Shortly after that fresh clashes erupted in Rakhine State. In 2012, 160 Rohingya were killed and 140,000 fled their homes. In a population that remains around 4% Muslim even excluding the Rohingya, there are signs that the monk is again expanding his range of targets. “Myanmar doesn’t have only a Bengali problem,” he said in Hpa-an, using a local term for the Rohingya. “It has a Muslim problem.” Buddhist abbot Venerable Wirathu, top, has been taking a leading role in spreading ethnic hatred against Myanmar’s Muslims. Hundreds of thousands of Rohingya Muslims have fled to Bangladesh, bottom. military didn’t respond to requests to comment. Ven. Wirathu, who is 49, was born Win Khaing Oo in Kyaukse, a town not far from Mandalay. His father was a retired soldier who drank heavily, friends and neighbors said. His mother did laundry for neighbors to help make ends meet. Win Khaing Oo used to kick a ball about with a neighbor and classmate, Ko Than Mani. “We were close. We did everything together,” Mr. Ko Than Mani said. After his father died, Win Khaing Oo’s mother began a relationship with a Muslim shopkeeper. Not long after, at the age of 14, the boy entered the monkhood and took his monastic name. “He changed after that,” Mr. Ko Than Mani said. Ven. Wirathu appears to have been particularly receptive to the teachings of a former monk and military officer named Kyaw Lwin, according to senior monks who know him. Mr. Kyaw Lwin, who died several years ago, founded a Buddhist university and warned that the country needed to turn the faith into a buffer against the Muslim population in Bangladesh and, on the other side of Myanmar, WORLD WATCH FRANCE MEXICO Higher Taxes Sought On U.S. Web Firms Central Bankers Warn Of Nafta-Linked Risk Europe should move quickly to increase taxes for U.S. internet companies such as Amazon.com Inc. and Alphabet Inc.’s Google, French Finance Minister Bruno Le Maire said Thursday, in a U.S. speech that set out the new French government’s policy priorities in its relations with Washington. Mr. Le Maire called for “much faster progress” in taxing internet companies, a key issue for European governments struggling to restore their finances. Many U.S. internet companies pay little tax in Europe despite large turnover because they can funnel profits through a low-tax jurisdiction such as Ireland or Luxembourg. Taxing companies on their turnover rather than their profits, while an imperfect solution, could be implemented relatively quickly, Mr. Le Maire said, speaking at the U.S. Chamber of Commerce in Washington. Since his election in May, French President Emmanuel Macron has moved quickly to push through labor-market overhauls and advance plans for tighter integration of the eurozone. Mr. Le Maire reiterated France’s desire for closer cooperation among eurozone countries, including the creation of a common budget and finance minister. —Tom Fairless Mexican central bankers stressed the risk that talks to redraw the North American Free Trade Agreement could pose to Mexico’s growth, the peso and inflation, minutes to the bank’s September policy meeting showed. The Bank of Mexico left its overnight interest-rate target at 7%, saying the growth outlook had worsened and inflation risks may have increased. Board members agreed that any impact on the economy from September’s devastating earthquakes and hurricanes was likely to be moderate and temporary, while growing uncertainty about U.S.-Mexican trade relations posed a significant risk. —Anthony Harrup LOUISA GOULIAMAKI/AGENCE FRANCE-PRESSE/GETTY IMAGES BY ROB TAYLOR Police Add Suspects in Kim Killing INDRANIL MUKHERJEE/AGENCE FRANCE-PRESSE/GETTY IMAGES; LYNN BO BO/EUROPEAN PRESSPHOTO AGENCY Australia Hack Nets Data on U.S. Arms SOLEMN CELEBRATION: Greek presidential guards stood in front of the Parthenon at a ceremony on Thursday marking the anniversary of the liberation of Athens from Nazi occupation. SPAIN National Day Feted Amid Catalan Crisis Catalans who want their region to remain in Spain marked Spain’s national day Thursday, marching through Barcelona waving both Spanish and Catalan flags and shouting “I am Spanish,” as the region’s threats of inde- pendence have left the country in crisis. Local police in Barcelona, Catalonia’s capital, estimated that 65,000 people who marched to a central square, shouting “Viva Espana.” In Madrid, troops paraded in front of King Felipe VI. Dia de la Hispanidad, or Hispanic Day, commemorates Columbus’s arrival in America and is also Spain’s armed forces day. —Associated Press ARGENTINA Consumer-Price Rise Adds to Pressure Consumer prices rose at a faster-than-expected pace in September, renewing pressure on Argentina’s central bank to crimp inflation. Prices jumped 1.9% from August, well above the 1.4% rate forecast by economists. The inflation rate underscores how hard it has been for President Mauricio Macri to fix a host of economic problems. —Taos Turner For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A8 | Friday, October 13, 2017 THE WALL STREET JOURNAL. * *** WORLD NEWS Europe Envoy Puts Off Next Brexit Steps DANIEL LEAL-OLIVAS/AGENCE FRANCE-PRESSE/GETTY IMAGES BY LAURENCE NORMAN AND VALENTINA POP Demonstrators flew a U.K. and an EU flag at the Houses of Parliament in London on Thursday. zens rights, the financial situation and the status of the border in Ireland. Mr. Barnier has been mandated to decide when to make that recommendation but the final decision on this will be made by EU leaders. Speaking at the end of the fifth round of talks, Mr. Barnier said no significant ad- BRUSSELS—The European Union’s chief Brexit negotiator said he won’t recommend to the bloc’s leaders next week that talks with Britain advance to a new stage, saying there was too little progress on divorce issues. Michel Barnier’s comments on Thursday mean talks on the future trading relationship between the U.K. and the EU may not start in earnest until early 2018. That would give negotiators a small window to talk about a future deal, since the EU wants talks wrapped up by October 2018 to allow six months to ratify an agreement before Britain’s scheduled exit date. The pound fell against the euro and the dollar after Mr. Barnier’s remarks. The EU has said it will discuss a future trade relationship with Britain only once “sufficient progress” has been made on major divorce issues: citi- The EU’s Michel Barnier cited a lack of progress with the U.K. on divorce issues. vances had been made in negotiations this week and said there was now a “disturbing” deadlock on the EU’s demand that Britain stand by past spending pledges to the bloc. There also appeared to be no significant advance on other key divorce issues, for example, the future rights of EU citizens in the U.K. Brussels is demanding those rights are secured by the European Court of Justice, a position London doesn’t accept. The EU also wants its citizens to be able to bring their families to Britain in the future and to continue to receive all social-security payments from the U.K. after Brexit if they return home. However, in a move U.K. officials said signaled flexibility, Mr. Barnier said he believed “decisive progress is within our grasp” in the next two months and said he would “explore a way forward, out of the deadlock.” The bloc’s leaders meet in Brussels on Oct. 19-20. British officials said they will be looking at discussions closely to see if leaders offer any flexibility on the way ahead. U.K. Brexit Secretary David Davis said Britain wasn’t prepared to make detailed financial commitments to the EU for the post-Brexit period but again called for the EU to start discussions about the future relationship. BY STEPHEN FIDLER The prospect of a “no-deal” Brexit is once again exciting British politicians. Prime Minister Theresa May threw a bone to her party’s Brexit supporters this week by promising that, while the U.K. was hoping for successful negotiations with the European Union ANALYSIS over leaving the bloc, it was preparing the ground in case talks failed. Two reasons are usually given for preparing for a nodeal scenario. The first is prudence: Given the possibility that the two sides won’t reach an agreement, it is the cautious thing to do. The second is negotiating credibility: Only if the EU is convinced of the U.K.’s willingness to walk away from the talks will it be motivated to offer the U.K. a good deal. But there are reasons to doubt whether such a posture, often advanced by Brexit sup- porters, would carry much weight as a negotiating tactic. In the first place, time is running short. In the absence of a transition period in which trade rules stay unchanged after Brexit day in March 2019, the scale of necessary preparation—including building extensive infrastructure at ports to cope with increased customs bureaucracy—is too ambitious in the next 17 months, given the limited preparation so far. Second, EU decision makers believe that the damage would be overwhelmingly worse for the U.K. economy than for the EU. True, the bloc would suffer, in some places and sectors quite significantly, but most economic models predict the U.K. would face by far the biggest economic hit. There are in fact two potential types of no-deal Brexit, as Chancellor of the Exchequer Philip Hammond pointed out on Wednesday to a House of Commons panel. Under what he called a “bad-tempered” Brexit, YE PINGFAN/ZUMA PRESS For Britain, the Prospect of ‘No Deal’ Isn’t Much of One U.K. Brexit Secretary David Davis, left, and EU negotiator Michel Barnier spoke in Brussels on Thursday after the latest talks. there would be no agreement between the two sides and therefore no legal basis for many EU companies to do business with the U.K., a chaotic outcome under which he said it is “theoretically conceivable” though highly unlikely that flights between the EU and U.K. would be grounded. Then there is an orderly nodeal, a recognition from both sides that they can’t reach an agreement on a preferential trade accord. EU-U.K. trade would shift to most-favored-nation terms under World Trade Organization rules, bringing tariffs and a host of customsclearance procedures that would gum up free flows of trade between the EU and U.K. Michel Barnier, the EU’s chief Brexit negotiator, said on U.S. to Exit Unesco, Citing ‘Bias’ on Israel BY FARNAZ FASSIHI UNITED NATIONS—The U.S. will withdraw from Unesco, the United Nations culture and heritage organization, officials said, a move that could further strain relations between the Trump administration and the U.N. The State Department said the U.S. decision to leave Unesco “was not taken lightly” and reflects American concerns over the need for overhauls in the organization, as well as its “continuing anti-Israel bias.” The withdrawal will take effect at the end of next year. The U.S. exit is the latest development in a long and tense relationship between Washington and the Parisbased body, which promotes international cooperation in areas of education, science, culture and communication. Washington withdrew from Unesco in 1980 because it said the organization had become politicized. It rejoined in 2003, but since 2011 has withheld funds to Unesco amounting to nearly $550 million because of its decision to confer membership on the Palestinian territories. In a statement on his official Twitter account Thursday, Israeli Prime Minister Benjamin Netanyahu said his country too was preparing to exit Unesco, “in parallel with the United States.” Unesco has denied that it is biased against Israel. Since arriving at the U.N. earlier this year, U.S. Ambassador Nikki Haley has voiced criticism over what she has called a bias against Israel, both in the Security Council and at various U.N. agencies. In July, Unesco designated the Old City of Hebron and Tomb of the Patriarchs as Palestinian heritage sites despite diplomatic efforts by Israel and political pressure from the U.S. to derail the designation. Ms. Haley said in a statement Thursday that those designations had negatively affected the U.S. re-evaluation of its commitment to Unesco. “The United States will continue to evaluate all agencies within the United Nations system through the same lens,” she said. The director general of Unesco, Irina Bokova, expressed “profound regret” at the U.S. decision. Ms. Bokova in a statement listed a series of cooperative efforts between the U.S. and Unesco, noting the Statue of Liberty is among protected World Heritage Sites designated by the organization. The State Department said it would maintain its connection with Unesco as a nonmember, observer state. Thursday, “No deal would be a very bad deal.” He isn’t the only one who thinks so. Few economists appear to have modeled a bad-tempered Brexit. But even in the case of a more orderly no-deal exit, a growing number of economists believe some better-known forecasts—including that of the U.K. Treasury—have underestimated the likely longer-term impact. A paper from economists at the World Bank this year suggests many studies haven’t taken into account how much deeper intra-EU trade relations are than traditional trade deals focused mainly on tariffs. The EU, it points out, encompasses 44 legally enforceable provisions affecting trade in goods and services. Their forecasts suggest a no-deal scenario could halve U.K. trade in goods with the EU and cut trade in services by 62%. A new study published Thursday from Rabobank, the Dutch lender, tries to capture economic effects of Brexit that other models have underesti- mated, including by focusing on the impact of resultant higher prices as well as the hit to productivity that would flow from less efficient trading relations with the EU. A non-chaotic no-deal Brexit in March 2019, it estimates, would push the U.K. immediately into two years of recession. By 2030, it estimates U.K. gross domestic product would be 18% lower than if the country had stayed in the EU, the equivalent of £11,500 (nearly $15,200) per British worker. By comparison, the hit to the economy of the Netherlands, a major U.K. trading partner and one of the EU countries with the most to lose from Brexit, would be about 4% of GDP. Such studies reinforce the view that it is irrational for the EU and U.K. not to seek some kind of post-Brexit preferential trade accord. They also suggest that a U.K. effort to exact a better deal from the EU by pretending it is ready to walk away is a tactic of limited credibility. Overdue The U.S. has withheld nearly $550 million in funds to Unesco since 2011 because of its decision to confer membership on the Palestinian territories. Unesco member states with the largest unpaid contributions to the regular budget United States Japan Brazil United Kingdom $542.67 million 31.60 23.65 Share of contributions assessed for the 2016-17 regular budget 14.57 Israel 8.53 Venezuela 8.27 Argentina 2.86 Yugoslavia 2.77 Libya 2.55 Iran 2.35 United States 22% Rest of member countries 54% Japan 9.7% China 7.9% Germany 6.4% Notes: Data as of Oct. 5; Amounts due in € are reported using the constant rate of $1 = €0.869 Source: Unesco THE WALL STREET JOURNAL. NFL Continued from Page One the nation’s sports media. On Sept. 26, @ProFootballTalk, the Twitter account for the popular NBC Sports blog, tweeted that it was “on the commissioner” to solve the anthem issues. In response, @forargument tweeted: “Please do better reporting. He is already doing this. You are behind.” Who is this valiant defender of a man who has so few defenders? It is Roger Goodell’s wife, Jane Skinner Goodell, The Wall Street Journal confirmed after an examination of the account. “It was a REALLY silly thing to do and done out of frustration—and love.” Mrs. Goodell said Thursday afternoon in a written statement. “As a former media member, I’m always bothered when the coverage doesn’t provide a complete and accurate picture of a story. I’m also a wife and a mom. I have always passionately defended the hardworking guy I love—and I always will. I just may not use Twitter to do so in the future!” Within an hour after the Journal reached out to Mrs. Goodell and the NFL, the account was made private. Later, it was taken down completely. “Sounds like what she did is what every spouse in America would want to do,” said NFL spokesman Brian McCarthy. Mrs. Goodell, a former broadcaster, is punching back at a trying time for her husband. The league is in a feud with President Donald Trump over some players’ decisions to kneel during the national anthem. It is embroiled in a legal fight with one of its top stars, Dallas Cowboys running back Ezekiel Elliott, over a disciplinary issue. The league’s strong TV ratings have sagged the past two seasons. And the commissioner has a lucrative contract extension— one that is reportedly close, but not yet completed—hanging in the balance. Amid this firestorm, Mrs. Goodell has covertly worked to change the narrative. All of the 14 tweets from Mrs. Goodell since August are defenses of Mr. Goodell in reply to various publications, including the Journal and prominent sports commentators. Throughout the guerrilla social-media campaign, however, BENJAMIN LOZOVSKY/BFA FROM PAGE ONE Roger Goodell and his wife, Jane Skinner Goodell. nobody has been paying attention. None of those tweets have elicited replies, likes or retweets. But @forargument is nothing if not consistent in its support for the commissioner. In reply to an ESPN article about the NFL’s response to Mr. Trump’s attacks, @forargument admonished the two reporters involved: “Reads like press release from players’ union. You can do better reporting. (D Smith sounds like D Trump with the inaccurate firebombs).” DeMaurice Smith is the head of the NFL Players Association. “The premise of your article is silly,” @forargument tweeted on Oct. 3 at the Journal after an article about disagreement among league owners over handling of the anthem protests. “What board of directors in this country would all agree on this issue?” “Why is everyone so immature? (including you?),” @forargument scolded Journal columnist Jason Gay in August. Her most recent tweet was in response to a tweet from NBC News’s presidential historian, who tweeted a picture of a newspaper article from 1970 titled “Agnew Continues Attack on GOP Senator Goodell,” who is the commissioner’s father. @forargument replied: “Goodell courageous & was right in the end. Leadership is hard. Commish is doing same. Give him credit.” Walt Disney Co.’s ESPN declined to comment. Comcast Corp.’s NBC and Dow Jones & Co., publisher of the Journal, didn’t have an immediate comment. It wasn’t her tweets that gave @forargument away. It was some of the people she follows. In total, @forargument follows 46 accounts. Between the national outlets, prominent athletes and others (such as Taylor Swift, Ryan Seacrest and a popular account @FemaleTexts), she follows four accounts connected to the high school attended by the Goodells’ twin daughters. Various other social-media breadcrumbs track to Goodell family members and friends. Mrs. Goodell, though quiet in recent years, has an impressive résumé. She has experience in the media world and has spent plenty of time in the spotlight. She and Mr. Goodell married in 1997, and he became commissioner in 2006. She co-hosted a daytime show on Fox News until 2010, when she stepped down saying she wanted to spend more time with her family. She doesn’t have a verified Twitter account of her own and has rarely spoken publicly since leaving Fox News. In one exception, she spoke at the NFL Women’s Summit in 2016 before Super Bowl 50, moderating a panel about “Media, Entertainment and Sports as a Platform.” That a prominent person has a secret Twitter account isn’t altogether surprising. Many high-profile figures use the social-media site covertly to monitor others— without tweeting themselves. In the past year, enterprising sleuths have found the anonymous accounts purportedly belonging to people such as former Federal Bureau of Investigation Director James Comey and National Basketball Association Commissioner Adam Silver. Neither of those accounts issued public tweets. Mrs. Goodell, however, tweeted publicly and challenged big-name outlets in defense of Mr. Goodell. In that way, it falls in line with a tradition of spouses coming to the defense of their significant others. In 2012, supermodel Gisele Bündchen stuck up for Patriots quarterback Tom Brady saying, “my husband cannot f—ing throw the ball and catch the ball at the same time.” Mr. Goodell has his own Twitter account with more than 500,000 followers under the handle @nflcommish. He last tweeted Saturday in Indianapolis, from the Colts’ unveiling of Peyton Manning’s statue outside their stadium. @forargument liked that tweet. He follows 195 accounts. The NFL spokesman said Mr. Goodell didn’t know about @forargument. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | A9 IN DEPTH Continued from Page One licly disclose results. It told investors it estimated 2016 sales at about $130 million, up from about $7 million in 2012, according to a presentation reviewed by the Journal. Lanny Davis, a lawyer Outcome hired as spokesman after the Journal’s inquiries, says the company has hired the law firm of former U.S. attorney Dan Webb “to review allegations about certain employees’ conduct that have been raised internally.” He says Outcome “has always upheld the highest ethical standards” and has adopted new policies throughout 2017 to comply with customer contracts. Mr. Davis, former special counsel to President Bill Clinton, says Outcome has put three employees on paid leave, including Ashik Desai, a top lieutenant of Mr. Shah’s, “while concerns that have been raised about his conduct are reviewed.” Mr. Desai didn’t respond to inquiries, and Outcome didn’t make him available for comment. “We are proud of the company we and our employees have built,” said Mr. Shah and Outcome President Shradha Agarwal, in an emailed statement responding to questions about Outcome employees’ alleged misleading of clients. “Of course, we have had growing pains as we scaled from 4,000 to 40,000 doctors’ offices—every high-growth company does. That is why we have taken many steps to implement best practices.” The two executives declined to be interviewed. The Journal review found nothing to demonstrate top executives’ involvement in the alleged misleading of advertisers. Outcome is the latest in a series of highly valued startups that promise to overturn old industries with new technologies. Outcome has said its mission is to “activate the best health outcome possible for every person in the world” and provide “actionable health intelligence at the moment of care.” In practice, it puts flat screens and tablets in doctors’ offices and gets paid by pharmaceutical companies to run ads on them. The screens, which also run educational content, are free to the doctors. The approach digitizes an industry that long tried to reach patients by placing posters, pamphlets and closed-loop television in waiting rooms. ‘Make goods’ Outcome is now providing tens of millions of dollars in free advertising to customers, including Sanofi SA and Biogen Inc., people familiar with the arrangements say. It returned millions of dollars in cash to Pfizer Inc., say people familiar with the refund. Mr. Davis says Outcome as a policy offers “make goods” to advertisers when it fails to meet contract terms. He says Outcome can’t discuss specific cases involving clients because of confidentiality agreements, including all the pharmaceutical companies mentioned in this article. A week before Outcome announced the funding round in May, Mr. Shah warned his staff during an employee meeting that the first quarter was “very tough” and that the company had missed expectations, according to a recording of the staff meeting reviewed by the Journal. To save money, Outcome recently slashed employee travel, according to a staff memo reviewed by the Journal. At least seven executives have departed this year, some shortly after joining, including an operating chief, Sameer Kazi, who confronted Mr. Shah with concerns about business practices, say people briefed on the discussion. Mr. Kazi in a brief phone conversation this summer said he was at the company “two weeks and three days” early this year, declining to comment on his departure. Mr. Davis says Mr. Kazi’s departure was amicable and that some two dozen executives have also been added in 2017. Outwardly, Outcome projects a bright future. In late September, Mr. Shah stood next to Chicago Mayor Rahm Emanuel for a ceremony in the lobby of the 29-story glass building to be renamed “Outcome Tower” where the company recently leased 394,000 square feet, typically enough space for roughly 2,500 JASON HENRY FOR THE WALL STREET JOURNAL STARTUP Outcome installs video screens and tablets in doctors’ offices such as this one in California and charges pharmaceutical companies to run ads on them aimed at patients. staff, though it has fewer than 500 in the city today. The Chicago-area native announced that his company planned to expand its Chicago workforce by 2,000 by 2022. Mr. Emanuel pronounced that “as Outcome goes, so goes Chicago.” Mr. Emanuel’s office didn’t respond to inquiries. Hours later, Mr. Shah met with executives in a hotel conference room to finalize plans for layoffs, says a person familiar with the planning. By the end of the week, they had laid off at least 76 of their 600-plus total employees. Mr. Davis says Outcome hired more people in the third quarter than it cut that week and has hired about 20 more since. Outcome, registered in Delaware as ContextMedia Health LLC, was founded in 2006. It began its swift ascent after 2012, and with it rose Mr. Shah’s profile. He regularly flies on private planes and helicopters for business and pleasure, say people familiar with the travel. Mr. Davis says Mr. Shah personally pays for the flights. Mr. Shah donated over $600,000 to the Democratic Party’s joint fundraising committee for the 2016 election and held a $50,000-a-plate fundraiser for Hillary Clinton at his Chicago mansion. In July, Sen. Warren stopped by his office, followed in September by Sen. Schumer. A spokesman for Mrs. Clinton and a spokeswoman for Sen. Warren didn’t respond to inquiries. A spokesman for Sen. Schumer confirmed the meeting with Mr. Shah. Mr. Shah holds a majority stake in Outcome after the fundraising round with Goldman and Alphabet’s CapitalG unit, making him a billionaire on paper in the deal. Representatives for Goldman and Alphabet didn’t respond to inquiries. Mr. Gurley, the venture capitalist who lauded Mr. Shah at the time, declined to comment; his firm isn’t invested in the company. A pharmaceutical company wanting to advertise on Outcome’s doctor network typically gives the startup a list of specific doctors whose patients the pharmaceutical company wants to target. A diabetes-medication company, for instance, might want to advertise in endocrinologists’ offices. Outcome’s analysts match the drug company’s target list against its own list of offices with its screens installed, called its “list match” process. Out- Growth Story Outcome Health's revenue $150 million 125 100 75 50 25 0 2012 ’13 ’14 ’15 Source: company presentation THE WALL STREET JOURNAL. ’16* *Estimate Unexpected Outcome How Outcome Health sells advertising to pharmaceutical companies. Outcome HEALTH Outcome installs ﬂat screens and tablets in doctors’ ofﬁces to run advertising on them. The screens are free to doctors. A match Pharmaceutical companies give Outcome a list of doctors whose patients they want to target with advertising. 7 matches Outcome compares the list with its own list of doctors whose ofﬁces have screens installed. 4 matches The pharmaceutical company pays Outcome to run ads in ofﬁces where Outcome says it has a match. Former employees say Outcome sometimes charged for more screens than it had installed. Outcome sometimes charged for ofﬁces it hoped would sign up, without informing advertisers. Outcome says its policy is to communicate an accurate match to clients and that it is investigating the allegations. THE WALL STREET JOURNAL. Sources: the company; WSJ reporting come typically billed clients for what it said was the number of matched screens. From at least 2014 through 2016, Outcome sometimes charged companies for a list match showing more screens than it had installed, sometimes by as much as double, say people familiar with the process. Asked if there were cases where clients weren’t informed that a match list included doctors without screens, Mr. Davis says: “Yes. These are among the issues” that the independent counsel will review. Outcome sometimes charged for doctors it hoped would install its screens but hadn’t yet, say some of the people. Other times, it charged for multiple doctors practicing at the same address, but in different office suites, even if not all had its screens installed. Mr. Davis says that when the company fails to meet contract terms, it offers make-goods. “Company policy, both currently and historically, is to communicate an accurate list match with transparency to our clients.” Outcome would give advertisers the numbers of doctors and screens but sometimes declined to provide a full list of matched doctor names, citing privacy concerns, making it more difficult for advertisers to independently verify ads were running, say some of the people familiar with Outcome’s processes. Mr. Davis says Outcome shares doctors’ identifying information with clients if they agree not to disclose it. The executive directing the list-match process has long been Mr. Desai, whom Mr. Shah hired in 2012. In October 2014, Mr. Desai gave instructions to prepare a match of doctors for Boehringer Ingelheim GmbH, which wanted to run ads for its drug Spiriva, according to internal messages reviewed by the Journal. Mr. Desai gave instructions to send to a salesman a list of 4,000 doctors and 2,100 offices for the client, which included some doctors without screens installed, says a person familiar with the matter. The salesman, and by extension the client, weren’t informed of that fact, ‘The company strongly denies the practice of misreporting of campaign information.’ says this person. A Boehringer spokeswoman says the company doesn’t discuss advertising partnerships, saying: “We are looking into this matter further.” Earlier that summer, Johnson & Johnson complained to Outcome after its field representatives noticed there were no screens in some offices where J&J was being charged to run ads for an arthritis drug, according to documents and people familiar with the dispute. Mr. Desai and Mr. Shah apologized and agreed to decrease J&J’s cost, say these people. A J&J spokeswoman declined to comment on the episode. J&J, she says, expects suppliers to “represent their ca- pabilities accurately.” The incidents of charging advertisers for doctors without screens continued at least through the end of 2016, say some of the people familiar with the company’s practices. This summer, Outcome hired media-audit firm BPA Worldwide to audit its network. BPA’s Senior Vice President of Auditing, Richard Murphy, says his firm verified the size of Outcome’s network and delivery of ads for one ad campaign. Doctored screenshots Some advertisers required Outcome to provide affidavits with screenshots showing their ads had run in doctors’ offices. Outcome employees sometimes grabbed a screenshot of an ad from their own computers, edited it to add a timestamp and doctor identification number to make them appear genuine, and affixed Mr. Desai’s electronic signature, say people who prepared the documents. Mr. Davis says such use of screenshots would violate company policy. “We do not know of any instance in which this happened, but these are among the issues” that the independent counsel will review, he says. Outcome is able to capture “live” screenshots remotely from doctors' offices, he says. Advertisers also asked Outcome to survey patients and doctors to see how they responded to ads. The surveys sometimes got little response, say people with knowledge of the surveys. In one case, an employee asked Mr. Desai to approve a made-up number of respondents to a survey for client Tandem Diabetes Care Inc., according to an internal message. “Yea I’d inflate it a bit more :),” Mr. Desai said in response. Tandem declined to comment. Mr. Davis says Outcome doesn’t know of any instance of providing inaccurate survey results. Outcome has also been accused of altering third-party reports. To convince advertisers their ad campaigns are worthwhile, Outcome commissions agencies including QuintilesIMS, also known as IMS, to estimate how many more prescriptions are written for a drug thanks to ads it runs. Outcome passes the reports to clients. In May 2016, a representative for Boehringer’s diabetes drug Tradjenta contacted IMS about data in a report forwarded by Outcome, says a person familiar with the episode. When IMS compared the report Boehringer had received with the one IMS had sent to Outcome, it noticed discrepancies in the data, according to an email reviewed by the Journal. In the email, an IMS representative complained to Mr. Desai, listing inconsistencies and erroneous numbers and emphasizing the importance of “strong ethics.” Mr. Desai responded in an email that IMS’s findings were “terribly concerning,” pledging to get to the bottom of what happened. In a later email, he blamed an unnamed data scientist. The incidents of altering IMS reports before sending them to clients happened multiple times, say people familiar with the reports. The Boehringer spokeswoman declined to comment on the incident. An IMS spokesman says: “We expect clients to use our data in a responsible and appropriate manner.” Mr. Davis says Outcome has policies to ensure metrics are reported accurately to clients. In November 2014, an employee expressed nervousness to Mr. Desai when early data for ads running on tablets for a J&J ulcerative-colitis drug showed clicks were a minute fraction compared with numbers previously shared with J&J, internal messages reviewed by the Journal show. The two discussed what the employee called “very poor engagement” for that tablet campaign. They also discussed similar discrepancies in tablet campaigns run by Novo Nordisk, Biogen, AbbVie Inc., Tandem and Astellas Pharma Inc., the messages show. Mr. Desai outlined a plan to “use the holidays” to slowly lower numbers shown to those clients, according to a message reviewed by the Journal. “I mean not to the extremes of reality,” he said. “But lower.” Mr. Davis says “these are among the issues” to be addressed by the independent counsel. “The company strongly denies the practice of misreporting of campaign information,” he says. “The company’s policy is to accurately report information to every customer on every program.” The pharmaceutical companies declined to comment. Over all, Mr. Davis says that “if there was any intentional misconduct, and the company finds out, severe actions will be taken.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A9A | Friday, October 13, 2017 NY * * THE WALL STREET JOURNAL. GREATER NEW YORK The two Democrats disagree over $2.7 million in bonuses paid to county prosecutors BY ZOLAN KANNO-YOUNGS Suffolk County Executive Steve Bellone says “unauthorized bonus payments” to longtime District Attorney Thomas Spota’s prosecutors were given without approval for the past five years, with the three most recent payments resulting in a nearly $900,000 hole in the county’s budget. It is the latest spat between the two Democrats. Mr. Bellone last year said Mr. Spota was running “a criminal enterprise” and called for his resignation amid reports of a federal probe into alleged misconduct by Mr. Spota’s prosecutors. The probe is ongoing, according to a local law-enforcement official familiar with the case. Mr. Spota has said his prosecutors perform their duties professionally. He said Mr. Bellone only wanted him out of office because the district attorney was an aggressive prosecutor. Mr. Spota’s prosecutors were given the payments from 2012 to 2017, Mr. Bellone’s spokesman said. They totaled $2.7 million, according to documents reviewed by The Wall Street Journal. The documents show seven payments from 2012 to 2015 were reimbursed from a fund of assets and money seized during criminal investigations. Extra payments or “modifications” to salaries for county employees must be approved by both the county executive and county legislature, according to the county charter. It is the county comptroller who distributes the checks to different departments, said a spokesman for Mr. Bellone, who added that the executive office did not approve any of the payments before the comptroller distributed the checks. The district attorney doesn’t need to seek approval because the payments are supposed to be repaid with asset-forfeiture funds, said his spokesman, Robert Clifford, who described the extra pay as “merit, retention and on-call pay to [assistant district attorneys].” He added: “Approval is only needed when a budget modification is made.” The initial payments from the county budget are made only after the district attorney confirms there is a sufficient amount of money in asset forfeiture funds, Mr. Clifford said. Mr. Spota would then submit a voucher to the comptroller’s office to transfer money from asset forfeiture to the county budget, Mr. Clifford said. Mr. Clifford said the district attorney submitted necessary documents for the transfer of funds to the county comptroller, and he referred additional questions to the comptroller’s office. County Comptroller John Kennedy Jr., and spokeswomen for the legislature didn’t return requests for comment. Asset-forfeiture funds are allocated to police departments, district attorneys and state government programs. The money is mostly used for MIKE BALSAMO/ASSOCIATED PRESS Suffolk Executive Ratchets Up Fight With Prosecutor District Attorney Thomas Spota defended the bonuses for his staff. equipment and training. But Scott McNamara, president of the New York state’s District Attorneys Association, said state law permits using the funds to pay prosecutors who work forfeiture cases or work special details. The Suffolk County district attorney and the county executive have feuded over pay for years. In August 2014, Mr. Spota called a meeting with county executive staffers and demanded raises for his staff, according to two people who say they were present at the meeting. Later that month, Mr. Spota sent a letter to the executive office questioning whether his office would have enough “incentive” to prosecute sales tax cases that bring revenue to the county if his prosecutors didn’t receive raises. Mr. Spota made payments to his employees 10 times from 2012 to 2017, according to documents. The first seven were reimbursed with asset forfeiture funds, said Jason Elan, spokesman for the county executive. “Unlike the earlier unauthorized bonus payments, the last three have not been reimbursed by asset forfeiture funds, which has left taxpayers on the hook for nearly $1 million,” he said. The most recent payment of $364,500 was divided among 32 of Mr. Spota’s employees in March of this year, according to payroll documents. Mr. Clifford said the notion that the recent payments had left a loss in the budget is false. “These payroll distributions are being paid from state asset forfeiture funds,” he said. He referred requests for documentation to the county comptroller, who didn’t return the request for comment. Mr. Clifford said the county’s financial-processing system doesn’t allow payments to be made directly from the asset-forfeiture account. Airbnb Rentals Not a Bonanza For Landlords JULIE JACOBSONASSOCIATED PRESS BY LAURA KUSISTO A watchdog says motorists may have to pay significantly more to cross the recently opened Gov. Mario M. Cuomo Bridge in Tarrytown, N.Y. Watchdog: Cuomo Bridge Tolls May Double BY PAUL BERGER Tolls on the $4 billion replacement for the Tappan Zee Bridge may have to double to pay for it. That is according to a policy brief from a nonpartisan watchdog group that crunched the numbers on the recently opened Gov. Mario M. Cuomo Bridge. The $10.70 toll projected by the Citizens Budget Commission would be more than double the current fullprice toll of $5, but $3 less than earlier New York State Thruway Authority forecasts. In its policy brief, the group said the higher toll it projected wouldn’t be unreasonable compared with the competing Hudson River crossing, the George Washington Bridge, which costs $15. “Even if the toll doubles, the Cuomo Bridge still represents a significant value relative to its alternative crossing,” the authors conclude. State Sen. David Carlucci, who represents Rockland County and parts of Westchester County, said comparing tolls with New York City crossings isn’t fair. Mr. Carlucci, who opposes any increase, said, “It could absolutely crush our economy if the costs of the tolls get too high.” The majority of bridge drivers use NY E-ZPass, which gives them a 25-cent toll discount. Commuters who cross the bridge a minimum of 20 times a month can sign up for an additional $2 discount. Thruway users have wondered whether the cost of the 3.1-mile span could be shared across the 570-mile system, which links the Hudson Valley with Albany and Buffalo. The Citizens Budget Commission found that a 24% toll rise across the Thruway would cover the new bridge. That would raise the full bridge toll by just $1.19. But the Citizens Budget Commission brief said that scenario is unfair to upstate drivers “and unlikely.” New York Gov. Andrew Cost of Crossing Full-price toll at some of the region’s major bridges u Brooklyn Bridge $0 u Mario M. Cuomo Bridge $5 u Robert F. Kennedy Bridge $8.50 u George Washington Bridge $15 u Verrazano–Narrows Bridge $17 Sources: New York State Thruway Authority, Metropolitan Transportation Authority, Port Authority of New York and New Jersey. Cuomo, whose father the bridge is named to honor, put off the financing issue by freezing Thruway tolls through 2020. He established a toll task force to explore the subject, but the task force hasn’t met since it was created two years ago. A spokesman for New York State’s Division of Budget, Morris Peters, said it is “premature” to convene the task force before the bridge’s final cost is known. “The governor is committed to keeping tolls frozen systemwide through 2020, and numerous options exist to further minimize the impact on toll payers,” he added. The first span of the twinspan bridge opened in August. The second span is expected to open next fall. The bridge may come in under budget because only $270 million of an $800 million contingency has been spent so far, the Citizens Budget Commission found. A little over $1 billion of the bridge’s costs are covered by a windfall from financial settlements with banks and insurers. That leaves the Thruway Authority to cover repayment of a $1.6 billion federal loan and about $1 billion in Thruway bonds. It is getting more difficult to turn a profit renting out a New York City apartment on Airbnb, according to a new study that could ease fears of landlords converting the city’s housing stock into a sea of de facto hotel rooms. Research by New York University professors, in collaboration with Airbnb Inc. economists, found that hosts in the city using the online homerental company would need to rent units out for a significant portion of the year to generate more profit than they would by leasing them to long-term tenants. In 2016, a host would need to rent out a unit for an average of 216 days as a shortterm rental to match the annual average revenue from a long-term lease. That was up from 194 nights a year in 2012. As of June 2017, the median number of nights booked for a typical entire-home listing in New York City was 46. The research aims to shed light on some of the critical questions facing regulators as Airbnb brings hotel activity to residential neighborhoods, raising concerns about safety of residents and tourists and the loss of affordable housing for local residents. “It’s a complex new problem that’s being generated by the blurring of lines, personal and commercial,” said Arun Sundararajan, one of the paper’s authors and a professor who studies the so-called sharing economy at NYU’s Leonard N. Stern School of Business. The NYU researchers said their findings might reassure regulators who fear landlords will shift their emphasis to attracting tourists willing to pay a premium to stay for just a few nights. “You’ve got to be really successful at doing it and you have to really dedicate yourself to doing it, given the costs,” said Ingrid Gould Ellen, a professor of urban policy and planning at NYU’s Wagner Graduate School of Public Service and another author of the report. “For most it’s not going to be worth it.” While the research was conducted in collaboration with Airbnb’s economists and using data the company provided, Mr. Sundararajan and Ms. Ellen said they weren’t paid by Airbnb. The NYU paper shows that the share of rentals in New York City that are for entire homes, as opposed to individual rooms, has been declining. Listings for entire homes are more likely to be full-time Airbnb units, while privateroom rentals are more likely to be residents looking to generate a little income on the side. In New York City, the share of rentals of entire homes fell to 53% in 2016 from 68% in 46 Median nights booked in a typical Airbnb full-home listing in the city 2011, according to NYU. The changing mix of Airbnb rentals might also be due to a regulatory crackdown that began several years ago. Airbnb is spreading rapidly into the outer boroughs and to less wealthy neighborhoods. On the one hand, that helps address another common criticism: that the economic benefits of Airbnb that come from increased tourism have largely been concentrated in wealthier neighborhoods, closer to local hot spots. But it also means that challenges around quality of life and potential loss of housing could become more concentrated in neighborhoods where local residents already are more vulnerable to displacement. Elegance is an attitude Longines Symphonette Kate Winslet For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | A9B NY * * GREATER NEW YORK City Shifts Gear At This Bash, Burgers Get Wild In Fight to Halt A Tall Building F Chefs put their creative spin on menu staple at a $225-a-person tasting event In a reversal, city planners are assisting a group of residents trying to halt ongoing construction of an 800-foottall tower across from a luxury high rise where many in the group live. For over two years, the residents and a group they founded, the East River Fifties Alliance, has spent more than $1 million drafting an unusual do-it-yourself zoning rule that could block the tower on East 58th Street near Sutton Place. City Hall and the city’s Planning Commissioner had lambasted the campaign in the past as a misguided effort to block a single building to protect views at the Sovereign, an 485-foot-tall co-op. But last week, the commission staff released a new zoning proposal by the group and offered support for it. It set an unusual fast track for review that would enable the proposal to be approved by the commission by Nov. 1, before election day, and by the City Council by mid-November. “We believe there is a landuse rationale,” said Bob Tuttle, a city planner, about the group’s latest proposal at a recent commission meeting. “We understand the community’s desire for height limits.” But at the meeting, Mr. Tuttle acknowledged that the proposed zoning change, which covers portions of a 13-block area east of First Avenue, would only affect a single development site in the foreseeable future: the East 58th Street construction site. Jonathan Kalikow, president of Gamma Real Estate, which is developing the new tower, warned that the zoning change targeted at his building would have a chilling effect on developers. He said he was rushing to try to complete the complex foundation needed for the tall narrow tower before the zoning change could take effect. “This zoning change, if passed, will have really horrific negative consequences for the city of New York,” he said. The new zoning proposal grew out of a meeting in August between planners and elected officials, including Manhattan Borough President Gale Brewer, who had joined East River Fifties group in submitting the plan. Earlier plans by the group had called for strict height limits. The new approach, recommended by the planning staff, would create a new zoning rule that would force developers on side streets to keep much of the bulk of their buildings below 150 feet and only indirectly cap heights. It would particularly penalize developers like Mr. Kalikow, who obtained air rights from nearby buildings, zoning experts said. The fast-track schedule was made possible after a decision by Ms. Brewer and the local community board to forgo hearings on the proposed zoning changes. ALEXANDER COHN/THE WALL STREET JOURNAL BY JOSH BARBANEL The Sovereign on 58th Street. orget Michelin stars or glowing Yelp reviews. For a number of New York chefs, there is only one honor that truly matters, especially come October. Winning the People’s Choice Award at the Burger Bash. The Bash, a $225-a-person tasting event set for Friday, has become the signature attraction at the FOOD & 10-year-old New CULTURE York City Wine & Food Festival, the largest annual culinary showcase in the city. The four-day festival kicked off on Thursday. With more than 30 handpicked competitors from both inside and outside the city, the Bash plays into a growing obsession with the burger, an all-American favorite that has become a platform for gourmet experimentation in recent years. At the event, the chefs, including such high-profile ones as Robert Irvine of Food Network fame and cookbook author Laurent Tourondel, put creative spins on the menu staple. The tweaks apply to both the meat—lamb burgers, anyone?—and the toppings, which can range from bacon “jam” to béchamel sauce. As a result, the Bash, which is hosted by celebrity chef Rachael Ray, draws attention on social media and from the local and even national press. Building on the popularity of the burger event and some other showcases, the festival has grown into a behemoth in New York, encompassing 80-plus events and drawing more than 55,000 attendees overall. The affair, which attracts such sponsors as the Food Network, the Cooking Channel and Coca-Cola, is run on a $6 million budget, with $1 million of the pro- MIKE COPPOLA/GETTY IMAGES FOR NYCWFF BY CHARLES PASSY Chefs will have a chance to showcase their talents making gourmet burgers at the Bash set for Friday. ceeds going to hunger-relief charities. Winning the Bash’s People’s Choice Award—there is also a separate award judged by a celebrity panel—can be transformative. Indeed, Josh Capon, a five-time New Yorkbased honoree, says the award helped put him on the dining map, particularly when he won in 2009 on behalf of Lure Fishbar, one of the restaurants that established him in the city. After that victory, Mr. Capon said, “we had a lot of people coming in just for the burger. There’s no question.” The chef has even parlayed his festival fame into a stand at Citi Field, which he appropriately called Bash Burger. But as the event has evolved both in New York and Florida, some say it has gotten a little too outrageous, if not plain out-ofhand. That applies not just to the burgers themselves— there are chefs even substituting compressed ramen noodles or fried plantains for the traditional bun—but also Best of the Bash Here are some burgers that were honored in the past at the Burger Bash: u Bash Burger (Josh Capon): Caramelized onion and bacon jam, shaved pickles, American cheese and secret sauce u Prez Obama Burger (Spike Mendelsohn): Applewood bacon, onion marmalade, Roquefort cheese and horseradish mayo to the antics of some of the competitors in an effort to get attendees (aka voters) to their tables. Think ones who hand out free T-shirts or even dress in drag. “In New York, the chefs are insane,” said Randy Fisher, the organizer who helps the festival produce the burger event. As a result, the festival has put in new restrictions this year. They include prohibiting the use of bull- u Santa Fe Burger (Bobby Flay): Queso sauce, roasted green chilies and blue corn chips u Guy’s Bacon Mac n Cheese Burger (Guy Fieri): Crispy applewood smoked bacon, fourcheese mac n cheese and garlic butter, and other ingredients u Lamb-Mark (Marc Murphy): Lamb burger with mint chimichurri Source: New York City Wine & Food Festival horns—the noise has apparently become an issue—and the trading of swag for votes. For all the hoopla and craziness, festival founder and director Lee Schrager says the attention-getting burgers are often all about the basics, as in a medium-rare beef patty topped with no more than quality cheese and a slice of onion and served on a good bun. “You want to win? Keep it simple,” Mr. Schrager said. GREATER NEW YORK WATCH COURT NEW YORK Testimony Wraps Up In Trial Over Bombs Unions Sue to Halt Teacher Certifications Prosecutors in the trial of a man accused of setting bombs in Manhattan and New Jersey presented a final summary of their evidence Thursday after the defense declined to make a case of their Defendant client’s innoAhmad Rahimi cence. After testimony from prosecutors’ final witness in Manhattan federal court, Ahmad Rahimi’s defense team also rested, without calling witnesses or offering evidence. Mr. Rahimi faces eight charges, including using a weapon of mass destruction and bombing a place of public use. Prosecutors say the 29-year-old planted three bombs on Sept. 17, 2016, in Seaside Park, N.J., and in Manhattan’s Chelsea neighborhood. One bomb exploded at about 8:30 p.m. on 23rd Street in Chelsea, injuring more than two dozen people and damaging buildings. Police defused another bomb in the neighborhood. No one was hurt when the Seaside Park bomb went off the same day. Mr. Rahimi has pleaded not guilty. He faces the possibility of life in prison if convicted. In a closing statement of more than two hours, Assistant U.S. Attorney Emil Bove carefully enumerated the evidence against Mr. Rahimi, including dozens of videos, DNA and fingerprints, records of purchases, and a letter written by the defendant, claiming responsibility for the bombs. “Ahmad Khan Rahimi conducted these bombings,” Mr. Bove said, moving to stand directly behind the defendant’s chair. “He carried these attacks out in a cold, calculated way, with evil in his heart.” “This is not a close case, ladies and gentlemen,” Mr. Bove told the jury. “I submit to you that the only appropriate verdict is guilty.” The defense’s closing statement is expected Friday morning. The trial began on Oct. 2. —Thomas MacMillan Two New York teachers unions filed a lawsuit Thursday to halt a plan that would allow charter schools to certify their own instructors. The complaint, filed by the United Federation of Teachers and the New York State United Teachers in state Supreme Court in Manhattan, charged that the SUNY Board of Trustees Charter Schools Committee, a state oversight body, has put in place a “watered-down system” for certi- fying teachers in certain charter schools which is “distinct from and contrary to” the system used for certifying teachers who work in public schools. To work, most prospective teachers have traditionally had to complete a year of course work and pass several exams. But the new regulations adopted Wednesday for some charter schools allow for a candidate to teach after passing one certification exam and completing 160 hours of instruction in behavior management, lesson planning and other skills, and 40 hours of supervised experience in the field. —Melanie Grayce West T H E W A T C H S A L O N A T 9TH ANNUAL WATCH FAIR FRIDAY–SUNDAY OCTOBER 20–22, 12–5PM AUDEMARS PIGUET EBEL PANERAI BAUME & MERCIER FRANCK MULLER PATEK PHILIPPE BLANCPAIN GRAND SEIKO PIAGET BREGUET HARRY WINSTON RAYMOND WEIL BREITLING HUBLOT ROGER DUBUIS BULGARI IWC SCHAFFHAUSEN ROLEX CARL F. BUCHERER JAEGER-LECOULTRE SHINOLA CARTIER LONGINES SWISS ARMY CHANEL LUMINOX TAG HEUER CHOPARD MICHELE WATCHES TUDOR CT SCUDERIA MONTBLANC VAN CLEEF & ARPELS N E WA R K A C A D E M Y Congratulates R ICHARD H. T HALER , P H .D. Class of 1963 Awarded the 2017 Nobel Prize in Economic Sciences Dr. Thaler’s innovative work has helped change the way economists look at the world. He joins many other diversely talented, engaged Newark Academy alumni who offer to the world a passion for learning, a standard of excellence and a generosity of spirit. OMEGA AMERICANA MANHASSET 2046 NORTHERN BLVD 516.627.7475 LONDONJEWELERS.COM 91 South Orange Avenue Livingston, NJ 07039 www.newarka.edu 973.992.7000 A college preparatory, coeducational day school for students in grades 6-12. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A10 | Friday, October 13, 2017 THE WALL STREET JOURNAL. LIFE&ARTS THEATER REVIEW | By Jim Fusilli CAROL ROSEGG The Boss On Broadway John Windsor-Cunningham and Rachel Pickup THEATER REVIEW Family, country, faith and music’s magic are at the heart of this concert-meets-memoir By Terry Teachout New York BRIAN FRIEL’S “The Home Place” was supposed to have been given its U.S. premiere by the Roundabout Theatre Company in 2007. Instead, casting problems caused it to be performed by Minneapolis’s Guthrie Theater, after which it soon dropped from sight. “The Home Place” has made it to New York at last, and the Irish Repertory Theatre is doing glorious honor to Mr. Friel’s final play. Directed by Charlotte Moore, whose Irish Rep productions of his “Dancing at Lughnasa” and “Molly Sweeney” burn brightly in memory, this is a staging of hushed grace and delicacy I wish Mr. Friel had lived to see. “The Home Place” is a history play of sorts, though its drama is wholly personal. Set in 1878 in Ballybeg, the notquite-imaginary Irish village where most of Mr. Friel’s plays take place, it unfolds in the home of Christopher Gore (John Windsor-Cunningham), a gentle-souled Anglo-Irish landlord who has fallen in love both with Ballybeg and with the much younger Margaret (Rachel Pickup), who keeps his house and loves his son (Ed Malone). Both of Christopher’s loves are hopeless, but the first is more tragic, since he can never be a part of the land to which he is so devoted. For such cloven creatures there is no true acceptance, least of all at a moment when the resentment of his tenants is coming to a rolling boil. When Christopher speaks of “the doomed nexus of those who believe themselves the possessors and those who believe they’re dispossessed,” you can hear the funeral bell of tribal irredentism tolling. As usual with Mr. Friel, “The Home Place” is unabashedly Chekhovian, but it also contains a sharp nudge of Shavian satire in the form of Christopher’s cousin (Christopher Randolph), a heartless anthropologist who has come to Ballybeg to measure the skulls of the natives, conducting himself very much like Henry Higgins in “Pygmalion.” Small wonder that his mere presence incites them to violence: He is the living symbol of the cold modernity that will soon lay waste to the village life that Christopher treasures. Ms. Moore’s staging is so natural that it feels as though the play is not being acted but is merely happening. Not only is the cast, Ms. Pickup and Mr. WindsorCunningham in particular, ideally chosen, but James Noone’s deep-green set is a miracle of evocative realism. What results is a revival superior in every way to the Guthrie’s well-meaning but overblown version. To see it is to come away certain that “The Home Place” is one of Mr. Friel’s half-dozen masterpieces. The Home Place Irish Repertory Theatre, 132 W. 22nd St., New York ($50-$70), 212-727-2737, closes Nov. 19 Mr. Teachout is the Journal’s drama critic. Write to him at firstname.lastname@example.org. ROBERT DEMARTIN (2) Back Home At Irish Rep Bruce Springsteen, right, and with Patti Scialfa, below, in his autobiographical show. New York PART CONCERT, part career retrospective, part confession and an entirely new way to experience the storytelling prowess of one of the world’s most familiar rock stars, “Springsteen on Broadway” is an enjoyable though not entirely successful recasting of the 68year-old singer-composer. On Tuesday night, two days before the official opening, the 975seat Walter Kerr Theatre here hosted Mr. Springsteen’s gathering, the topic of which was family, country, faith and music’s magic. “Springsteen on Broadway” finds much of its inspiration in his 2016 autobiography “Born to Run,” which took its title from his breakthrough song issued more than 40 years ago. In that song and others of his early career, Mr. Springsteen presented himself in epic terms, promoting a self-created myth of a streetwise tough, filled with grand, glorious ambition and eager to burst out of the Jersey shore and vanquish all challenges. But in the book, a right-size Mr. Springsteen is a troubled and deeply felt man who found his place in music and is still assessing his past. Throughout the two-hour program, Mr. Springsteen appeared as approachable and amiable, occasionally wandering downstage to address the assembly. He reminded the audience that, despite touring the world many times, the man who wrote odes to escape and the lure of the road now lives 10 miles from where he was raised. Shifting between playing acoustic guitar before a lone microphone at center stage and a nearby grand piano, Mr. Springsteen, in a black T-shirt and jeans, peppered his musical numbers with colorful tales of his inner life during his childhood and his development as a uniquely American artist. Much more than anecdotes to pace a concert, these tales illuminated the compositions he chose to perform. The relatively obscure “My Father’s House” and “The Wish” were brought into clear focus by finely wrought narratives of his parents—Doug, whom Bruce rescued in his autobiography from the archetypal presentation in his songs, and Adele Zerilli, who is a rare presence in his work, but a continuing source of love and inspiration. Mr. Springsteen dedicated much of the evening to his love affair with America—first its physical beauty, then its character. A robust “The Promised Land,” punctuated by a harmonica’s wail, and a nasty “Born in the U.S.A.,” the latter performed as a country blues with Mr. Springsteen on slide guitar, reflected the push and pull of his patriotism: His faith in America is often shaken, but it never disappears. He said he saw the current, seemingly unbridgeable divide among Americans as “just a bad chapter in the bat- tle for the soul of a nation” before his readings of “Long Walk Home” and “The Rising,” songs that speak of the resilience and native optimism of his fellow countrymen. Mr. Springsteen composes his songs on guitar or keyboards; therefore they are ready made for solo performance. Renowned as an excellent guitarist, Mr. Springsteen proved himself much more than a serviceable pianist, underpinning some of his tales with hypnotic repetitive chords or rumbling bass tones. Shorn of his band’s contributions to the arrangements, the lyrical subtexts moved to the fore. “Thunder Road” was no longer a bold, rousing blast; here, it became a lament in which the narrator cried “I just can’t face myself alone again.” “Dancing in the Dark” wasn’t merely a spry pop hit; it unfolded as a rumination on the relief from life’s grinding tedium found in a night out with music. If “Springsteen on Broadway” worked best when Mr. Springsteen brought the audience closer, it sagged when he reverted to the outsize character required to communicate to much larger crowds. Exhortations about the glory of rock that pump up screaming stadium-packing multitudes were heavy-handed in a venue in which the audience sat quietly in rapt attention; accordingly, a tribute to his friend and former bandmate Clarence Clemons failed to find the intimacy that made his recollections of his parents so heartwarming. An appearance by his wife, singer Patti Scialfa, to perform as a duet on “Tougher Than the Rest” and “Brilliant Disguise” was a wasted opportunity: Ms. Scialfa has a lovely voice, as her husband stated when introducing her, but it was lost in the sound mix. Best seen as a special concert rather than a glamour event, “Springsteen on Broadway” is an unabashed proclamation of Mr. Springsteen’s abiding affiliation with traditional values. Family members and friends who have passed on remain a presence in his life. He recited the Lord’s Prayer, a risky gambit that came off thanks to his linking it to earlier stories of his Catholic education as a child. His career, he said in a tone that balanced pronouncement and revelation, has been dedicated to reflecting the best possibilities of his country and its people. “I hope I’ve done that,” he said. “I hope I’ve been a good traveling companion.” “Springsteen on Broadway” reminds us that he has been just that. Springsteen on Broadway Walter Kerr Theatre, 219 W. 48th St., ($75$850), 877-250-2929, closes Feb. 3, 2018 Mr. Fusilli is the Journal’s rock and pop music critic. Email him at email@example.com and follow him on Twitter @wsjrock. FILM REVIEW | By Joe Morgenstern OPEN ROAD FILMS ‘MARSHALL’: SOUNDLY ARGUED, ACUTELY OBSERVED Chadwick Boseman and Josh Gad in ‘Marshall’ HERE’S SOMETHING refreshing—a greatman biopic, simply titled “Marshall,” that’s more concerned with the man in his earlier years than with the greatness to come. You get a hint from the opening music, a breezy jazz riff that might sound insufficiently serious for a full account of Thurgood Marshall, the civil-rights attorney who won a landmark victory in the 1954 Supreme Court case Brown v. Board of Education of Topeka, and the first AfricanAmerican justice of the U.S. Supreme Court. But “Marshall” doesn’t try to cover the glory days of a magnificent career. Set in 1941, it’s focused on a real-life Connecticut trial in which the hero, a rising star for the National Association for the Advancement of Colored People, defended a black chauffeur accused of kidnapping and raping a wealthy white woman in Greenwich. And Marshall—a terrific performance by Chadwick Boseman— comes off at the outset as full of himself to overflowing. In other words, here’s an irreverent movie with a quirky ring of truth. The film, which was directed by Reginald Hudlin, is adept at portraying the social and legal forces arrayed against the chauffeur, Joseph Spell (Sterling K. Brown), in a trial that gains national attention as an example of racism in the North. Spell has already been convicted in Greenwich’s court of public opinion. Now the judge, played by James Cromwell, and the prosecutor, played by Dan Stevens, ooze patrician empathy for the alleged victim, Eleanor Strubing (fine work by Kate Hudson). To complicate Spell’s defense even further, bad blood boils up between Marshall and his local co-counsel, Sam Friedman (Josh Gad, in another terrific performance), who is white, Jewish and innocent Please see MARSHALL page A11 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | A11 LIFE & ARTS FILM REVIEW | By Joe Morgenstern WE KNOW THEM, or think we do, from TV news—beleaguered refugees from blighted lands clambering out of boats onto beaches, waiting grim-faced for food in makeshift camps, trudging along back roads toward uncertain fates. “Human Flow,” a documentary by the Chinese artist and activist Ai Weiwei, searches them out around the globe and bears witness to their plight—not by showing them, as TV does, with ritual video snippets and sound bites, but by truly seeing these desperate migrants with an artist’s eye. That means, among other visual strategies, sitting some of them down, or standing them up, in front of a camera long enough for us to study their faces, get a sense of who they are. The handsome features of a Rohingya Muslim who has fled from Myanmar to Bangladesh darken with anger at how his people are seen: “They give us all sorts of names—boat people, drifters—and all because of the tyranny of the military junta.” A young Afghan mother says, gravely, “No one leaves their country lightly.” It doesn’t make sense that her little daughter, sitting beside her, wears a funny balloon tiara with a tip that keeps poking mom in the face, but then it makes no more sense that vast numbers of refugees live, sometimes for generations, in camps that breed disease, despair and radical rage. Mr. Ai is here, there and everywhere: shooting video with his iPhone; consoling a woman who, she says, has been wandering aimlessly with her son for 60 days; checking out images—the lingua franca of our time—on refugees’ phones. (A Syrian woman shows him a shot of her white cat wearing a little red dress.) One startling image, a white-and- gray grid, presents itself cryptically; maybe it’s a vertical shot of a fence with ants crawling on it. But no, it’s an overhead drone shot of an immense refugee camp in Turkey, and the apparent ants resolve into humans on the MARSHALL Continued from page A10 of experience in criminal trials. Dismayed by the need to have another lawyer on the case, Marshall is furious, and initially helpless, when the judge warns him that anything he has to say must be expressed through Friedman; coming, as he does, from out of state, the NAACP ace may not speak in open court. An important part of the drama’s substance lies in the two men turning their fraught rela- CLOCKWISE FROM TOP LEFT: AMAZON STUDIOS; ANNAPURNA PICTURES; OPEN ROAD FILMS A New View of Migrants ‘Human Flow,’ directed by artist and activist Ai Weiwei, at right streets as the camera zooms down. As director and instigator of this ambitious, 140-minute film, Mr. Ai is clearly the dominant sensibility, but far from the only shooter. Over the course of a year, 28 cinematographers and some 200 crew members followed the thrust of the film’s title in 23 countries. “Human Flow” is a poetic title, but flow implies smooth transit; the movement of refugees around the world is more of a tide with inevitable surges, and with blockages in backwaters formed by walls— especially, as Mr. Ai’s film has it, the long wall, or fence, erected by Hungary, which has split Europe down the middle. (An oddly tentative section is set near an existing segment of corrugated-metal wall on the U.S.-Mexican border.) It’s hard to gauge what effect the production may have on today’s audiences; attention spans are short and political will is variable. If “Human Flow” has a chance of breaking through the noise and clutter of the media surround, it’s not because the demands Mr. Ai’s documentary makes on our attention are modest; just the opposite. This movie, a testament to the power of seeing, provides a long and uncommonly vivid look at a human crisis that’s changing the face of our planet. tionship into a partnership that foreshadows the national alliance between blacks and Jews in the emerging civil-rights movement. But that’s an abstract description of a prickly situation slowly blossoming into an affecting and funny bromance. Before this happens, it’s a case of role reversal in which Marshall treats Friedman like a white man might treat a Pullman porter. “Would you help me with that?” Marshall asks casually on his arrival at Bridgeport station, indicating a suitcase full of law books that Friedman promptly lugs to a V Vancouver 50s Por P tl d Portland 40s g Eugene Boise <0 0s 50s 10s p Winnipeg Seattle 30s 20s 50s Helena g Billings Bismarckk Ottawa 60s T t Toronto 30s Montreal A g t Augusta 40s t Boston rtford Hartford ew Y New Yorkk 60s 60s pls /St / . Pau Pa Mpls./St. Paul oux Falls ll Pierre Sioux 50s A bany b Albany 60s t Detroit l Buffalo 70s k Milwaukee Clevel d Cleveland y Chicago h Cheyenne Phil h d lph hi Philadelphia 80s Pitts b gh Pittsburgh h Omaha 70s Sacramento p i gfi ld Springfield Denver 90s h gton on D.C. D.C DC Washington Indianapolis an Francisco San Kansas C l d Colorado h d City 100+ Ch Charleston Richmond Topeka Las p Springs 70s . 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Hi 63 86 69 94 74 62 56 77 80 63 70 75 55 62 68 Today Lo W 52 c 74 t 63 c 64 s 56 pc 51 s 39 sh 50 s 64 s 39 s 53 pc 44 s 40 sh 42 c 65 sh Tomorrow Hi Lo W 67 40 t 86 74 t 78 65 c 93 66 s 78 62 pc 71 57 c 60 40 pc 78 45 s 87 59 pc 52 33 pc 74 53 s 74 33 s 57 41 c 55 35 r 77 66 c International City Amsterdam Athens Baghdad Bangkok Beijing Berlin Brussels Buenos Aires Dubai Dublin Edinburgh Hi 65 78 94 89 66 60 66 62 98 66 66 Today Lo W 56 pc 61 s 66 s 77 t 42 s 52 pc 55 pc 42 c 78 s 54 r 51 r Tomorrow Hi Lo W 64 53 pc 77 60 s 95 66 s 89 77 t 56 47 c 67 53 pc 69 54 pc 70 47 s 97 80 s 66 54 pc 60 54 r City Frankfurt Geneva Havana Hong Kong Istanbul Jakarta Jerusalem Johannesburg London Madrid Manila Melbourne Mexico City Milan Moscow Mumbai Paris Rio de Janeiro Riyadh Rome San Juan Seoul Shanghai Singapore Sydney Taipei Tokyo Toronto Vancouver Warsaw Zurich Hi 66 71 87 90 69 93 74 76 66 83 86 63 71 74 52 90 71 89 97 74 88 66 69 87 75 81 64 68 51 57 68 mance by the usually wonderful Rebecca Hall) and their mutual partner Olive Byrne, a former graduate student played with steady-state radiance by Bella Heathcote. The inherent problem in such detective work is that the ultimate product—in this case a trailblazing, and much-beloved, fantasy figure of female empowerment—will always be more exciting than the literal process that brought it into being. Thus the real-life trio’s explorations of what was deemed sexual perversion can seem quaint and dutiful to our eyes, even though the film draws convincingly tight connections between those explorations and Marston’s early Wonder Woman comic books, which featured bondage, spanking and torture, and were widely condemned as pornography. (The film begins with a comic-bookburning sequence whose significance comes clear in the story’s later stretches.) All the same, “Professor Marston & the Wonder Women” stands head, shoulders, boots, tiara and lasso above many independent films of the moment. See it and you’ll come away with a new appreciation for the polywonder of creativity. ers, Michael Koskoff, having had a decades-long career as a civilrights attorney with specific experience in racially charged cases. (Jacob Koskoff, his co-writer and son, has prior experience writing scripts.) And the courtroom drama, exciting in its own right, is enhanced by re-creations— Newton Thomas Sigel did the elegant cinematography—of what the accuser and the accused say happened, of what might have happened and of what probably happened in this all but forgotten case that Thurgood Marshall tried long ago. “Marshall” is a movie that surprises at every turn. Today Tomorrow Lo W Hi Lo W 50 pc 69 49 pc 49 pc 73 48 s 73 pc 88 72 pc 77 pc 88 75 sh 56 s 68 55 r 78 c 93 77 c 58 s 73 57 pc 49 s 77 56 s 58 pc 67 56 pc 52 s 83 55 s 79 t 87 79 t 48 pc 66 45 pc 54 pc 73 55 pc 52 s 75 53 s 44 r 47 38 r 78 t 90 79 t 51 pc 72 53 pc 71 s 87 70 s 67 s 100 69 s 53 s 75 54 s 79 sh 87 78 sh 52 s 68 50 pc 63 c 71 66 c 75 c 88 78 pc 62 s 66 59 c 78 sh 86 81 r 61 r 66 60 r 55 c 68 63 sh 38 pc 52 43 c 45 pc 61 55 c 44 pc 68 45 s PUZZLE CONTEST 65 “This is driving me nuts!” 14 15 16 66 Twain’s “The Awful German 17 18 19 Language,” 32 Letters on the 20 21 22 notably A train 67 Physicist Mach 33 “The Hunt for 23 24 25 26 27 Down Red October” 28 29 30 weapon 1 Mineo of “Exodus” 34 Absorbed, as 31 32 33 34 financial losses 2 Show with a 35 36 37 38 “Cyber” spinoff 36 Colleague of Ruth and Sonia 3 Request for a 39 40 41 42 43 donation 37 U. of Tennessee 44 45 46 47 48 athletes 4 Prepare to land 38 Ankle-to-knee 5 Dry cleaner’s 49 50 51 52 area challenge 53 54 42 Metallurgist’s 6 25% of dodecasubject 7 “And She ___” 55 56 57 58 59 60 61 43 “Definitely!” (Talking Heads 62 63 64 song) 44 Noise from a nanny 8 Whole 65 66 67 45 One of Ireland’s 9 Representative four traditional 10 Tense peninsula GETTING UP TO CODE | By Matt Gaffney provinces 11 Buffet table fuel 46 Walk unsteadily The answer to 20 Lucy of 44 Remote control 12 Color in Qatar’s 47 Linen holders this week’s contest “Elementary” button flag 48 Doughnut, crossword is a major 21 Accidentally 13 Wolfs (down) 47 “I Spy” actor informally U.S. city. 18 Drop a hint 23 Triple-checking 48 Palace address 50 Fighting figurine 22 Fingerprint Across 28 Valhalla VIP 49 “Riffing off your 51 Bridge support feature 1 Damages forever 29 Over the outfield idea...” 52 T choice 23 Shorten fence 6 Fine-tune 53 Beloved hoofer 57 It’s nice when it’s thousands of 30 Omerta enforcers 54 Brown in 11 Texting format, iced blades for short 31 Took top honors bookstores 58 Sunbathe too 24 Hubbub 32 Hirer of Pat and 14 Strong point 55 Creepy cousin long 25 Piece with a Vanna 15 2011 Johnny 56 Like summer 59 Roadhouse cross 33 Identify, as in a Depp film camps and some 60 Tres menos uno 26 Shucked ears Facebook photo awarded the cereals 61 Remained idle Best Animated 35 Utterly fails to be 62 Called before the 27 “Hold On” group Feature Oscar competitive, wedding Previous Puzzle’s Solution electorally 16 “Tic ___ Dough” 63 Kitchen appliance A MMO S C A N S C A P S L O O N Y U C C A R U L E 17 One way to love 39 Muscle targeted brand F A L C O N T R O L I D E A by pulldowns somebody I N D E B T E S T O N I A N 64 Its main square is E S S O A K I A G O 40 Political Al 19 Mean pitchers the Piazza De L E X I C O N F E T T I A S H E S MO P E S A R M try to keep low 41 Today, to Tomas Ferrari 1 2 3 4 5 6 7 8 9 10 11 12 13 Email your answer—in the subject line—to firstname.lastname@example.org by 11:59 p.m. Eastern Time Sunday, Oct. 15. A solver selected at random will win a WSJ mug. Last week’s winner: Tom Greenhalgh, Madison, WI. Complete contest rules at WSJ.com/Puzzles. (No purchase necessary. Void where prohibited. U.S. residents 18 and over only.) s s...sunny; pc... partly cloudy; c...cloudy; sh...showers; t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Today Tomorrow City Hi Lo W Hi Lo W Anchorage 49 37 c 45 34 c Atlanta 84 67 pc 81 66 pc Austin 90 69 pc 91 69 pc Baltimore 68 60 sh 78 62 c Boise 52 30 sh 54 32 s Boston 63 57 s 70 63 pc Burlington 66 55 pc 70 59 sh Charlotte 76 61 r 81 62 pc Chicago 72 61 pc 75 55 r Cleveland 75 59 pc 80 68 pc Dallas 93 71 s 94 67 s Denver 64 38 s 58 32 c Detroit 71 57 pc 74 65 pc Honolulu 86 76 t 86 76 sh Houston 91 70 pc 91 69 pc Indianapolis 72 57 pc 78 64 pc Kansas City 83 66 s 81 46 t Las Vegas 84 57 s 80 54 s Little Rock 84 63 s 90 67 s Los Angeles 81 59 s 87 60 s Miami 88 79 sh 88 79 t Milwaukee 68 59 c 70 51 r Minneapolis 60 42 c 57 41 r Nashville 78 58 s 85 67 s New Orleans 89 73 s 87 75 s New York City 67 62 c 73 66 c Oklahoma City 86 67 s 88 53 pc WHAT A STRANGE and intriguing week this has turned out to be, with not one but two superhero origin stories, of sorts, hitting the screen simultaneously: “Marshall,” with its portrait of the Supreme Court jurist Thurgood Marshall as an ambitious young lawyer, and “Professor Marston & the Wonder Women,” a biopic by Angela Robinson about the creation of the feminist comic-book icon Wonder Woman. The timing of the film couldn’t be better, given that “Wonder Woman”—the big-screen spectacular—was the best entertainment of the past summer. The film’s style is another matter; it’s didactic, somewhat schematic and often stiff. Yet “Professor Marston” is never less than interesting, a literary and emotional detective story that finds Wonder Woman’s roots in the life of its creator, a Harvard psychology professor named William Moulton Marston. In Marston’s polyamorous life, that is, since the professor, portrayed blandly by Luke Evans, defied societal taboos of the day— the story begins after World War I—by living a secret life with his formidably accomplished wife and colleague Elizabeth Holloway Marston (an unsubtle perfor- The WSJ Daily Crossword | Edited by Mike Shenk 40s 40s Calgaryy SUPERHERO KINK waiting car. Once comity prevails, the co-counsels are co-equals in friendship and respect. Some of the writing on the fringes of the drama can be uneven. At Minton’s Playhouse, the legendary Harlem jazz club, Marshall runs into the poet Langston Hughes and the writer Zora Neale Hurston in a scene that plays like an over-earnest outtake from “Midnight in Paris.” But the trial sequences have a distinctive, authentic tone that clearly flows from one of the two writ- Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. 30s FILM REVIEW | By Joe Morgenstern Kate Hudson as Eleanor Strubing Weather d t Edmonton Rebecca Hall, Luke Evans and Bella Heathcote C L O D MA N E MO T R I A R C L L O O T MO D E S K E D G I L A D E C E M B E R O L T S N I I O N C E S A P S R A C O N R O D E A T E D A P L U S A P O M E N T L A D E L UM E MO R A N T P S B Y R N E For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. A12 | Friday, October 13, 2017 SPORTS MLB PLAYOFFS These Are Not Your Father’s Yankees Cleveland THE NEW YORK Yankees’ dramatic upset over the Cleveland Indians didn’t just extend their season and vault them into an American League Championship Series showdown with the Houston Astros. It all but ensured another episode of the city’s hottest new talk show, “The Toe Night Show.” The dugout skit has become a late-season phenomenon when the Yankees hit a home run in the Bronx. Utility infielder Ronald Torreyes, the program’s creator, producer and director, grabs a box doctored to resemble a television camera. Somebody else, often second baseman Starlin Castro or shortstop Didi Gregorius, pulls out a makeshift microphone fitted with a custom flag bearing “The Toe Night Show” name. A third player uses baseball gloves as “boom mics” to conduct an “interview” with their slugging teammate when he returns to the bench. The celebration routine, which Torreyes started at the end of September, is an absurd bit of comedy. It is silly. It is, in other words, the exact opposite of everything the Yankees usually represent. But these Yankees aren’t George Steinbrenner’s Yankees anymore. They aren’t even Derek Jeter’s Yankees, his influence fading three years after his retirement. Suddenly, an organization famous for beating individualism out of its players in the name of professionalism has adopted a surprising and fresh image for the new generation: It has embraced fun. “It’s a different time for baseball, a different style,” said Austin Romine, a catcher drafted by the Yankees in 2007. “The game’s changing, and we’ve got to change with it.” Infused with an exciting crop of young talent, the Yankees have surprised the baseball world by pushing deep into the postseason ahead of schedule. Against the Indians, they rebounded from a twogames-to-none deficit to win three straight, powered in Game 5 by two Gregorius homers and a brilliant performance by their bullpen. Winning is nothing new to the Yankees, who now sit eight victories away from their 28th World Series championship. Historically, “fun” hasn’t been part of that package. They might have been more accurately described as “boring,” “stuck-up” or “elitist. Their approach—an attitude often perceived as arrogance—had alienated some casual viewers, especially as the team failed to reach the postseason in three of the past four years. Moments of levity like “The Toe Night Show” have injected frivolity into a clubhouse not exactly known T-B: GREGORY SHAMUS, PAUL BERESWILL (GETTY IMAGES) BY JARED DIAMOND Top, New York Yankees shortstop Didi Gregorius celebrates after hitting a home run during Game 5 of the American League Division Series on Wednesday. Above, Aaron Judge gives a mock interview in the dugout during a recent game. for its antics. Last month, a bearded, bespectacled, suspenders-wearing Mets fan went viral when he was caught giving the “thumbs-down” sign to express his displeasure at a Yankees homer. The Yankees quickly brought the meme to life, turning the thumbs down into a rallying cry by flashing it after big hits. They even posed for a picture, which spread quickly across the internet, wearing matching thumbs- down T-shirts. “You can’t always be so straightedge,” relief pitcher Tommy Kahnle said. “It’s good to have a little fun.” Such stunts aren’t unique in baseball. Chicago Cubs manager Joe Maddon, for instance, has brought exotic animals into the locker room and hosted pajama parties on flights to cultivate a loose, easygoing environment. The sport has worked hard to fight its stodgy reputation in an effort to attract younger fans. Until now, however, the Yankees had been a holdover to the old traditions, clinging to the idea that the only fun to be had on a baseball field stemmed from winning. The rest, it seemed, was beneath them— no surprise, considering Steinbrenner, their late owner, once said, “Winning is the most important thing in my life, after breathing.” That mantra later defined Jeter’s tenure, when the Yankees won a lot but, taking a cue from their captain, were often devoid of personality. Kahnle, a Yankees draft pick in 2010, called the organization’s atmosphere “businesslike.” That will never disappear. The Yankees still don’t wear names on the back of their uniforms and don’t allow most facial hair, a policy that has become symbolic of their corporate nature. But a shift has undoubtedly occurred. “I love the fact that they show their emotions,” Yankees general manager Brian Cashman said early Thursday morning at Progressive Field, while the players sprayed Champagne in the clubhouse. “I think it’s great for baseball..” The Yankees cite their youth movement as the catalyst. It’s led by Aaron Judge, a rookie who swatted 52 homers in the regular season, and All-Star catcher Gary Sanchez. Judge’s breakout inspired the “Judge’s Chambers” at Yankee Stadium, a section of seats in right field with faux-wood paneling to look like a jury box, another fun touch uncharacteristic to the Yankees. Just as important, the veterans, such as pitcher CC Sabathia and outfielder Brett Gardner, have not only allowed the new way, but welcomed it with enthusiasm. “We’ve got a lot of young guys on the team, which keeps us older guys feeling fresh,” Gardner said. Even Joe Girardi, the squarejawed, crew-cut Yankees manager who has a degree in engineering from Northwestern, has gotten on board—or at least begrudgingly accepted reality. Girardi, an oldschool throwback, played for the Yankees from 1996 through 1999 and acts like it. Nonetheless, Girardi has learned to appreciate this version of the Yankees, thanks in part to his teenage son, who particularly likes Castro’s fashion sense. “We’re living in an age where youth does that, where before it didn’t necessarily happen here,” Girardi said. “I kind of like it. It shows the youthfulness of this team, and sometimes you get to laugh about it.” Whatever the Yankees are doing, it’s clearly working. Despite initially couching 2017 as a rebuilding year, they exceeded expectations by winning 91 games and earning a wild-card spot. The magical ride continued Wednesday, when they stunned the top-seeded Indians. Next, the Yankees head to Houston for Friday’s ALCS Game 1 against the Astros, another team that finished with more than 100 regular-season wins. Time will tell whether they’ll prevail—but they’ll certainly enjoy themselves. “It’s loose, it’s fun, it’s really different than it has been in the past couple years,” Romine said. “But I think it’s a good different.” NFL | By Jason Gay The upstart, uncharacteristically adorable New York Yankees are in the American League Championship Series. I know this, because I saw them celebrating on the field in Cleveland, wearing really, really, really ugly hats. Did I mention the hats—OK, fine, baseball loons, caps—were really, really, really ugly? I don’t understand why baseball, so beholden to its quaint traditions— this is a sport that still uses land lines to call the bullpen, like Grammy inviting you over to an early supper—turns around and saddles its victors with the most ghastly-designed apparel imaginable. On Wednesday, the sprightly Yankees recovered from an 0-2 deficit to upset powerhouse Cleveland in the American League Divisional Series, only to be forced to wear victory caps that looked stolen from the FREE bin at a Battlestar Galactica yard sale. Gray, navy and orange, and featuring MLB’s bizarre postseason motto, “TAKE 17” (Do you get it? You’re trying to “take” the title in 2017, so you say “TAKE 17,” like Frankenstein’s Monster) they were so hideously cluttered that even Nascar pit crews were like, Dang, those are some hideously cluttered caps. Baseball’s not the only sport that does this, of course: all of the big American sports should be arrested by the fashion police for the post- game horrors they unleash upon the hats and bodies of their champions. It’s gotten to the point I almost feel bad for the winners. After all, if you lose, at least you didn’t have to wear the terrible hat. Or cap. But I digress… The Yankees are a great sports story, but they’re not even the greatest sports story in New York City. That’s because the mighty, mighty New York Jets are headed straight to the Super Bowl. That’s right. You can take it to the bank. It’s the biggest NFL surprise this year. The Overachieving Green Machine, baby. If you followed any of the preseason football coverage, you know that the 2017 Jets did not have high expectations. The barely had expectations at all. Online bookmaker Bovada set their overunder line for wins at 4.5, and there was some serious debate as to whether the Jets would win a single game. Or even half a game. Walking in, things looked bleak. The Jets began their season with a quarterback list including 38-yearold Josh McCown, Bryce Petty, Christian Hackenberg and an inflatable giraffe they found at a pool party in New Jersey. The inflatable giraffe nearly won the job. They denied it, but it really appeared as if the Jets were trying to lose. Tanking was a word that got thrown around. There’s strong temptation for a crummy, quarter- SCOTT GALVIN/REUTERS THE JETS AND THE BEAUTIFUL UGLY Jets quarterback Josh McCown, right, and receiver Jermaine Kearse celebrate during a 17-14 win against the Browns. back-deficient team to lose a lot this year, as a pair of marquee college quarterbacks, Sam Darnold and Josh Rosen, are expected to be among the top picks in the 2018 draft. It would be another season of Jets failure—but fruitful failure. There was always the chance that the Jets could get a high pick and mess up and select a used box spring mattress—it’s happened before—but there was also the chance they could get a franchise-altering star. These Jets have not cooperated with the sinister plan, however. After an 0-2 start, they have reeled off three consecutive victories and find themselves in a three-way tie atop the AFC East with the Buffalo Bills and the struggling (well, struggling for them) New England Patriots. McCown has made the team’s decision to start him over the inflatable pool party giraffe look wise. On Sunday, Grumpy Lobster Boat Captain Bill Belichick and his Super Bowl champs wander into the Meadowlands for a contest that is a lot more intriguing than it looked in early September. The Jets are always a weird headache for New England, but on Sunday there are actual, exciting stakes. You: Buddy, it’s mid-October. Calm down. Me: Do you guys want another Trump/NFL column? Work with me here. The Jets and their head coach, Todd Bowles, are to be commended for not bowing to the skeptics and rolling over. Of course, there’s a classically Jets-y angle to this surprise start: some doomsdayish fans are crabby that the Jets are sabotaging their chances for the top draft pick. Jets fan Larry David alluded to this during a recent appearance on Dan Patrick’s sports talk show. “What’s wrong with them?” David howled. “I don’t want them to win any games. I’m sick about this.” And this was when the Jets were a mere 2-2! Yes, it’s early. There’s no reason to believe these Jets won’t revert to the mean soon, perhaps as early as Sunday. Lobster Boat Bill will surely have a plan. But why not dream a little dream? Protests, Presidential tweets, the Patriots a loss away from a fetid .500—this football season is already chaotic. What if it’s the Jets—the Jets!— who finish in the really, really, really ugly hats? Or caps. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com Friday, October 13, 2017 | A13 THE WALL STREET JOURNAL. OPINION Scalias All the Way Down Ask most Republicans to identify Donald Trump’s biggest triumph to date, POTOMAC and the answer comes WATCH quick: SuBy Kimberley preme Court A. Strassel Justice Neil Gorsuch. That’s the cramped view. The media remains so caught up with the president’s tweets that it has missed Mr. Trump’s project to transform the rest of the federal judiciary. The president is stocking the courts with a class of brilliant young textualists bearing little relation to even their Reagan or Bush predecessors. Mr. Trump’s nastygrams to Bob Corker will be a distant memory next week. Notre Dame law professor Amy Coney Barrett’s influence on the Seventh U.S. Circuit Court of Appeals could still be going strong 40 years from now. Mr. Trump has now nominated nearly 60 judges, filling more vacancies than Barack Obama did in his entire first year. There are another 160 court openings, allowing Mr. Trump to flip or further consolidate conservative majorities on the circuit courts that have the final say on 99% of federal legal disputes. This project is the work of Mr. Trump, White House Counsel Don McGahn and Senate Majority Leader Mitch McConnell. Every new president cares about the judiciary, but no administration in memory has approached appointments with more purpose than this team. Mr. Trump makes the decisions, though he’s taking cues from Mr. McGahn and his team. The Bushies preferred a committee approach: Dozens of advisers hunted for the least controversial nominee with the smallest paper trail. That helped get picks past a Senate filibuster, but it led to bland choices, or to ideological surprises like retired Justice David Souter. Harry Reid’s 2013 decision to blow up the filibuster for judicial nominees has freed the Trump White House from having to worry about a Democratic veto during confirmation. Mr. McGahn’s team (loaded with former Clarence Thomas clerks) has carte blanche to work with outside groups like the Federalist Society to tap the most conservative judges. Mr. McGahn has long been obsessed with constitutional law and the risks of an all-powerful administrative state. His crew isn’t subjecting candidates to 1980s-style litmus tests on issues like abortion. Instead the focus is on promoting jurists who understand the unique challenges of our big-government times. Can the prospective nominee read a statute? Does he or she defer to the government’s view of its own authority? The result has been a band of young rock stars and Scalia-style textualists like Ms. Barrett, Texas Supreme Court Justice Don Willett and Minnesota Supreme Court Associate Justice David Stras. Senate Republicans have so far blown their major agenda items, but they’ve remained unified on judges. They agreed to kill the Senate filibuster for Supreme Court nominees so as to confirm Justice Gorsuch; have confirmed six other judicial nominees; and stand ready to greenlight dozens more. This is a big shift from divisions the party had over the Bush 41 and Bush 43 nominees. While the press goes wild over tweets, Trump is remaking the federal judiciary. Because Mr. Trump’s picks have largely spent their careers focused on administrative law and constitutional questions, few have gotten bogged down by controversial cultural rulings. They do have paper trails, but mostly on serious and technical issues. This helps reassure Republicans even as it deprives Democrats of the fodder they’d need to stage dramatic opposition. Conservatives praised Mr. McConnell last year for refusing to consider Judge Merrick Garland, whom Mr. Obama had nominated to the Supreme Court. Less well known is the sheer number of federal judgeships Mr. McConnell sat on as the Obama administration wound down. Mr. Trump took office with 107 lower-court vacancies, more than any of the past five presidents save Bill Clinton. The GOP challenge now is to break Democratic obstruction and get those posts filled. Former Trump aide Steve Bannon is vowing to primary at least six GOP senators next year, saying he will support only candidates who refuse to back Mr. McConnell for another stint as leader. But Mr. Bannon’s claim that Mr. McConnell represents the “swamp” is lazy scapegoating. Yes, health-care reform failed—thanks to three showboating Republican senators. And yes, the House gets more done. But only the Senate is in the long-term personnel business. The Trump judicial reset was never guaranteed. Mr. McConnell just happens to have a steely passion for remaking the judiciary. Previous majority leaders Trent Lott (best friends with trial lawyers) and Bill Frist (nice, nice) would never have gotten Justice Gorsuch confirmed. Those guys were the “establishment.” Ted Cruz, Mike Lee, Jodi Ernst, Deb Fischer, Dan Sullivan, Cory Gardner, Marco Rubio, Tom Cotton—this is the new generation of Republican senators. They were all elected in recent cycles. They are reformers, far removed from the earmarking, logrolling, crony, backroom days of washed-out Republicans who inspired the tea party. The country has moved, as has Congress. The proof is in the extraordinary class of judicial nominees now coming through. Mr. Trump will keep baiting the media with shiny objects. In the background, government is being redone. Write to email@example.com. Dan Brown Can’t Cite Me to Disprove God HOUSES OF I recently My true concern is with creator and ruler of the world Consider someone who asWORSHIP learned that I my double’s attitude in the reflects a serious misunder- sumes that all existence is By Jeremy England play a role in Dan Brown’s new novel, “Origin.” Mr. Brown writes that Jeremy England, an MIT physics professor, “was currently the toast of Boston academia, having caused a global stir” with his work on biophysics. The description is flattering, but Mr. Brown errs when he gets to the meaning of my research. One of his characters explains that my literary doppelgänger may have “identified the underlying physical principle driving the origin and evolution of life.” If the fictional Jeremy England’s theory is right, the suggestion goes, it would be an earthshattering disproof of every other story of creation. All religions might even become obsolete. It would be easy to criticize my fictional self’s theories based on Mr. Brown’s brief description, but it would also be unfair. My actual research on how lifelike behaviors emerge in inanimate matter is widely available, whereas the Dan Brown character’s work is only vaguely described. There’s no real science in the book to argue over. book. He is a prop for a billionaire futurist whose mission is to demonstrate that science has made God irrelevant. In that role, Jeremy England says he is just “trying to describe the way things ‘are’ in the universe” and that he “will leave the spiritual implications to the clerics and philosophers.” Two years ago I wrote in Commentary magazine that it is impossible simply to describe “the way things are” without first making the significant choice of what language to speak in. The language of physics can be extremely useful in talking about the world, but it can never address everything that needs to be said about human life. Equations can elegantly explain how an airplane stays in the air, but they cannot convey the awe someone feels when flying above the clouds. I’m disappointed in my fictional self for being so blithely uninterested in what lies beyond the narrow confines of his technical field. I’m a scientist, but I also study and live by the Hebrew Bible. To me, the idea that physics could prove that the God of Abraham is not the standing—of both the scientific method and the function of the biblical text. Science is an approach to common experience. It addresses what is objectively measurable by inventing models that summarize the world’s partial predictability. In contrast, the biblical God The novelist relies on my research, but my literary doppelgänger makes bad arguments. the work of a creator who speaks through the events of the world. He can follow that assumption down the road and decide whether God seems to be keeping his side of the bargain. Many of us live like this and feel that with time our trust in him has been affirmed. There’s no scientific argument for this way of drawing meaning from experience. But there’s no way science could disprove it either, because it is outside the scope of scientific inquiry. Some religious adherents do make claims that deserve to be disputed by science. For instance, they may openly acknowledge that their deepest beliefs are incompatible with the existence of dinosaurs. The fictional me—and perhaps Mr. Brown too—might hope to put these holdouts back on their heels. But disputes like this never answer the most important question: Do we need to keep learning about God? For my part, in light of everything I know, I am certain that we do. tells Moses at the burning bush: “I will be what I will be.” He is addressing the uncertainty the future brings for all. No prediction can ever fully answer the question of what will happen next. Humans will always face a choice about how to react to the unknowable future. Encounters between God and the Hebrew prophets are often described in terms of covenants, partly to emphasize that seeing the hand of God at work starts with a conMr. England is a professor scious decision to view the of physics at the Massachuworld a certain way. setts Institute of Technology. Fake News From the SPLC By Jeryl Bier ‘T he incident was just a harbinger of what has become a national outbreak of hate, as white supremacists celebrate Donald Trump’s victory,” the Southern Poverty Law Center proclaimed in a November 2016 report titled “Ten Days After: Harassment and Intimidation in the Aftermath of the Election.” As the SPLC described the incident: “Just a week before the November 8th election, attackers set a church in Greenville, Mississippi, on fire. The historically black church was targeted in what authorities believe was an act of voter intimidation, its walls spray-painted with the phrase ‘Vote Trump.’ ” But the SPLC’s “harbinger” turned out to be fake news. Three weeks after the center issued its report, police arrested a member of the vandalized church, Andrew McClinton, and charged him with arson. According to the Washington County Circuit Clerk’s office in Greenville, Mr. McClinton has been indicted and is awaiting a trial date. The state fire marshal told the Associated Press in December he did not believe the crime was “politically motivated.” Although the December 2016 arrest was widely reported at the time, the SPLC did not update or correct its report until I called it to their attention this week. A church fire started by a congregant isn’t an example of ‘hate.’ What’s more, it was still promoting the false story on Twitter as recently as Sept. 25. And at press time it has yet to update two earlier pieces on the incident, one reporting it the day after it occurred and the other calling on the governor to “condemn . . . race-based violence.” The SPLC has recently come under fire for its tendency to focus on “hate” only when it comes from what the SPLC sees as the political right, and for false characterizations, such as its designation of the Family Research Council as a “hate group” or libertarian social scientist Charles Murray as a “white nationalist.” But even journalists who criticize the SPLC for these smears have praised its tracking of real hate groups and reporting of hate incidents. The Washington Post’s Dave Weigel told me in March that he appreciates the SPLC’s tracking and profiling of extremist groups and uses the center’s website as a reference to gauge the prevalence or impact of extremist groups he runs across when researching stories. Will the SPLC’s sloppiness—at best—in continuing to mischaracterize the Greenville incident as a hate crime lead journalists to reconsider? Mr. Weigel didn’t respond to an email request for a follow-up interview. But his newspaper hosts the “Ten Days After” report on its website, noting—under its “Democracy Dies in Darkness” banner—that “the Southern Poverty Law Center documented 867 bias-related incidents in the ten days after the election of Donald Trump.” Despite the Post’s own reporting of Mr. McClinton’s arrest, the report is presented in its original form, with no correction. The Post is only one of scores of websites, including many news organizations, that have referenced the “Ten Days After” report in the months since it was published. The report was even cited in congressional testimony in May, long after Mr. McClinton’s arrest. Several books published in 2017 cite the report as a source. None of the references I reviewed note that the “hate incident” story has fallen apart. I emailed the SPLC Thursday with a series of questions about the false report. Wendy Via, the center’s communications chief, responded: “I’m still not able to answer all of your questions going forward but wanted to thank you for bringing the need for a report update to our attention.” Ms. Via added: “As you write about the SPLC, I urge you to also use the opportunity to shed light on the prevalence of hate incidents in our nation.” She also acknowledged that the SPLC’s reports “are anecdotal.” Mr. Bier is an accountant and freelance writer. BOOKSHELF | By Gregory Crouch Things You Don’t Tell Your Mudder It Takes a Tribe By Will Dean (Portfolio, 262 pages, $28) W hen Will Dean first submitted his perhaps-too-original business proposal to his Harvard Business School professors, they judged it “simplistic” and “too optimistic.” The most common response was: “Mr. Dean, do you really think anyone will pay you to run through mud?” Turns out they would. It isn’t difficult to imagine how preposterous the idea must have seemed in 2010: “Create a weekend adult obstacle course,” an “untimed challenge” that could “only be negotiated with help from friends and teammates and strangers.” (At the time, other entry-fee based obstacle-course races, such as the Spartan Race and Rugged Maniac, were equally embryonic.) It would be a test “based on mutual cooperation, not winner-take-all competition.” Mr. Dean believed that out of an experience of effort, agony and camaraderie would spring a “global tribe that lives the values of courage, personal accomplishment, teamwork, and fun.” He would call these people “Tough Mudders.” Mr. Dean has since expanded his “mud fair” into gargantuan events, with 20 to 25 obstacles and thousands of participants spread over 10- to 12-mile courses. They combine the best elements of foulweather mud-running with team-building exercises that demand military-style leadership. The result is a “test of courage and commitment,” made up of equal parts endurance sufferfest and muddy fun pit. Today the Tough Mudder movement is a global enterprise, with more than 2.5 million participants and in excess of $100 million a year in revenue. “It Takes a Tribe: Building the Tough Mudder Movement,” which Mr. Dean wrote with co-author Tim Adams, is the story of Mr. Dean’s entrepreneurial journey. He narrates the history of the Mudder movement, shares stories from the Tough Mudder “tribe” and offers advice on bringing Tough Mudder principles and values into our personal lives and business organizations. It’s an attempt to elevate the Mudder culture to the level of Nike’s Swoosh and “Just Do It.” Topics range from overcoming fears to cultivating and connecting with a tribe, making innovation happen and navigating the challenges of business ownership. Mr. Dean is a naturally incisive and decisive businessman with an eye for opportunity he has apparently honed since childhood. As a schoolboy, he flogged gym bags branded with his school emblem to a £10,000 profit. Growing up in the gritty industrial town of Worksop, England, a place whose “identity and purpose,” he writes, was destroyed by the mid-1980s coal miners’ strike, he developed a “nostalgia for grit and camaraderie” that gave rise to his Tough Mudder vision, an attempt to “try to create a business and a culture that might offer a version of those values in a different way and to a new generation.” The elation that participants feel after completing a course is no doubt genuine. Just don’t mistake it for a real adventure. After a five-year stint working counterterrorist operations in the Middle East and Afghanistan for the British Foreign Office, Mr. Dean enrolled at Harvard. He found the experience “frustrating,” the courses geared more toward creating a “convincing management consultant” than a real-life entrepreneur. Few places “talk more engagingly about the value of teamwork and show less interest in it in practice,” he writes. “We were mostly nerds doing spreadsheets,” and Harvard’s “science” of creating your own business was mostly taught by “people who had never, and would never, start businesses of their own.” The experience filled him with a “stubborn” desire to prove that he was right when everyone around him was telling him he was wrong. Since then, people all over the world have accepted Mr. Dean’s Tough Mudder challenge. There have been those with terrible physical and emotional disabilities who completed events with the aid of the Mudders to their right and left, “help others” being a cornerstone of the Mudder ethos. Some of the stories Mr. Dean tells are truly inspiring: of cancer patients and tragedy victims, those without sight and others afflicted with terrible diseases and disorders. One obese woman lost half her body mass in order to enjoy the “childlike freedom” of “slithering around in mud for the hell of it.” That sure sounds like fun. During his events, Mr. Dean talks with pride about “expecting the unexpected,” about participants confronting their fears and about the courage Tough Mudders display by showing up at the starting line. But do these canned corporate obstacle-course experiences rise to the level of genuine adventures, with uncertain outcomes and high-stakes consequences? “What could possibly go wrong?” a National Geographic photographer friend of mine sardonically chuckles before each new harebrained expedition to Iran, Papua New Guinea or South Sudan. The truth is that at Tough Mudder very little is left to chance. The company presumably carries an excellent and well-considered insurance policy. Every course is carefully designed, its danger level moderated and managed. They’re cruise-ship Disneyland adventures with orange Tough Mudder headbands. That doesn’t mean they aren’t colossal mud pies of fun or that they haven’t helped tens of thousands of people learn “confidence and resourcefulness” and smash personal barriers. But the threat level just doesn’t rise to the threshold of true adventure. The fatal flaw lurking in all these inspiring entrepreneurial stories is the unasked question: What happens to the person who puts all of his chips behind an idea worse than Mr. Dean’s? He fails, goes broke and goes back to flipping burgers. We never learn his name. That’s real. Credit Mr. Dean for taking Tough Mudder’s truly adventurous step. Mr. Crouch is the author of “The Bonanza King: John Mackay and the Battle Over the Greatest Fortune in the American West,” out next year. Coming in BOOKS this weekend Learning from Leonardo da Vinci • John Green’s ‘Turtles All the Way Down’ • Life and war in the real ‘Casablanca’ • Joseph Lister’s war on germs • The man who invented art history • Sam Sacks on literary thrillers • & more For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. A14 | Friday, October 13, 2017 OPINION R REVIEW & OUTLOOK LETTERS TO THE EDITOR Salvaging Private Health Insurance Deadly Gerrymanders’ Threat to Democracy epublicans are still trying to defuse the Administration will certify the plans as compliticking ObamaCare bomb without blow- ant with ObamaCare’s coverage mandate, ing themselves up, and on Thursday the though the executive order doesn’t say. GOP cut the first wire: PresiObamaCare’s defenders are dent Trump signed an execu- Trump’s executive order calling all of this “sabotage” tive order that could begin to and warning about “adverse should create more revive private insurance marselection,” in which a more rokets. More to the point, Ameri- choices and lower costs. bust individual market will sicans may start to have more phon off the healthy customers choices at a lower cost. that prop up ObamaCare’s exOne piece of this week’s order directs the La- changes. They predict a death spiral of higher bor Department to “consider expanding access” premiums for the sick or elderly left on the exto Association Health Plans, which would allow changes. small businesses to team up to offer insurance. Yet the ObamaCare exchanges were deterioThe purpose is to let trade groups form insur- rating long before Mr. Trump arrived, as the ance risk pools across state lines and enjoy econ- young and healthy and insurers fled. Enrollment omies of scale. Many large companies are freed is 60% lower than the Congressional Budget Offrom state and some federal benefit mandates fice predicted, which is impressive even by CBO’s and operate under a law known as Erisa. Smaller record of missing the mark. Some 6.7 million businesses deserve similar flexibility. people paid a tax in 2015 rather than buy coverMore association plans might start to reverse age they don’t want or can’t afford. the decline in small business coverage, and a If the small-plan and association markets White House fact sheet notes that the share of grow enough, perhaps the exchanges could over workers at small firms with employer coverage time become high-risk pools that subsidize care has dropped to about one-third in 2017 from al- for the sick, as the Juniper Research Group’s most half in 2010. Chris Jacobs has suggested. What eludes the SoThe order also seeks to expand the flexibility cratic dialogues of Jimmy Kimmel is that the and use of health-reimbursement arrangements, small percentage of Americans with pre-existing which allow employers to pay back employees conditions need help paying for known probfor health-care expenses with pretax dollars. lems, not unexpected events built into the price This could be a step toward equalizing the tax of insurance. This can be done without burying treatment for smaller businesses that don’t offer the costs across higher premiums for everyone, coverage and thus don’t qualify for the subsidy as ObamaCare does. known as the employer tax exclusion. The downside of the executive order, and it’s A third part of the order directs cabinet agen- considerable, is that these are all regulations cies to consider new rules on short-term insur- that could be changed by, say, President Bernie ance plans, which the Obama Administration re- Sanders. Reform by statute would be far more stricted for the mortal sin of popularity. The durable. So it was surprising to see Kentucky plans traditionally could run for a year and often Senator Rand Paul all over cable-TV Thursday cover catastrophic events with relatively broad taking credit for the new rules after he did so networks of doctors and hospitals. This can be much to scuttle ObamaCare repeal in Congress. a lifeline for folks between jobs. He’ll need more than this for absolution. But an Obama rule that took effect earlier this The association-health plans in particular year limited the duration of the plans to 90 days. will require what the White House calls a ObamaCare’s central planners hated that so “broader interpretation” of the Erisa law. Any many people were choosing the short-term op- legal judgment will await the fine print, but this tions that can cost a third of standard plans. The is the kind of rule by regulation that will have Obama Administration said short-term plans to withstand inevitable court challenge. don’t qualify as “minimum essential coverage” The order’s practical effect thus won’t be under ObamaCare, though it sure beats the risks known for months, though the agencies ought of going without insurance. to move quickly to mitigate as much damage as The short-term market has historically been possible in next year’s markets. The executive minuscule, but perhaps demand will be higher order isn’t the sabotage Democrats claim but now given that average ObamaCare premiums neither is it the political salvation some Republihave increased dramatically since 2013. One un- cans hope. Republicans shouldn’t use these modknown is how many insurers will participate or est improvements as an excuse to avoid pushing what coverage will be included. Presumably the more durable legislative reform. T America Out of Unesco he Trump Administration isn’t known nist past who ran for U.N. Secretary-General for public-relations savvy, and Thurs- with the backing of Vladimir Putin. day’s surprise that the U.S. is withdrawIn 2011 Ms. Bokova let the Palestinian Authoring from the United Nations’s ity join Unesco as a member The U.S. shouldn’t main cultural agency is a case state, triggering a U.S. law that in point. The decision was still prevents U.S. funding for any finance the antithe right one. U.N. body that accepts a PalesIsrael U.N. agency. State Department spokestinian state. Unesco claims the woman Heather Nauert said U.S. now owes about $550 milthe U.S. will leave the Parislion in missed payments. based U.N. Educational, Scientific and Cultural In July Unesco declared Israel’s Tomb of the Organization, or Unesco, on Dec. 31 and become Patriarchs and other areas as Palestinian heria non-member observer. She cited “concerns with tage sites, an act of political incitement. As U.N. mounting arrears,” “the need for fundamental re- Ambassador Nikki Haley explained Thursday, the form” and “continuing anti-Israel bias.” Israeli agency has engaged “in a long line of foolish acPrime Minister Benjamin Netanyahu called the tions, which includes keeping Syrian dictator decision “courageous and ethical” on Twitter and Bashar al-Assad on a UNESCO human rights said his country will also quit. committee even after his murderous crackdown For decades Unesco has been a political on peaceful protestors.” agency masquerading as a cultural institution. Ms. Haley also wants to reform U.N. peaceThe Soviets ran its education programs and its keeping and has warned the U.S. may withdraw anti-American bent continues. Unesco’s current from the Human Rights Council absent reform. chief, Irina Bokova, is a Bulgarian with a Commu- The Unesco withdrawal is a good first step. T China’s Reform Canary he debate in China over economic re- terprises over private companies that are more form has just become more interesting. efficient and innovative. Central Bank Governor Zhou Xiaochuan Mr. Zhou’s insight is that the free movement on Monday called for freer of capital would discipline comThe central bank trade and an end to capital panies without government micontrols as essential to recromanagement. He champigovernor calls for an structure the economy. Comoned the liberalization of end to capital controls. domestic interest rates in 2015, ing on the eve of the Communist Party Congress, this could but they are still artificially low be an important moment. because of capital controls. Mr. Zhou is right that a convertible cur- Only when Chinese savers can seek higher rerency—the yuan—is key to rebalancing turns abroad will companies have to pay a market China’s economy from its long-time depen- price for capital. Banks will also have to pay savdence on high savings and investment. Capital ers more interest to attract deposits, stimulating controls keep savings within China’s financial consumption. system, depressing the cost of capital and Beijing would naturally prefer to make this subsidizing investment at the expense of transition when the yuan isn’t under attack household income. from speculators. Mr. Zhou’s remarks are surThis combination, known as financial repres- prising because China has battled capital flight sion, has contributed to the massive increase in for the past three years. The outflows exceeded lending over the past decade. Total debt in the $100 billion a month in the last half of 2015, economy soared to 280% of GDP by some esti- prompting Beijing to retighten capital controls. mates. Moody’s and Standard & Poor’s down- Global monetary conditions are more favorable graded China’s sovereign debt this year because this year, with the weak dollar allowing the cenof the rapid increase in borrowing, which is his- tral bank to keep credit looser. The yuan appretorically linked to financial crises. ciated against the dollar and China’s foreign-exOne possible consequence for China when change reserves began to rise again, though this bill comes due is slowing growth and stag- some capital continues to leak out. nating real wages, much like Japan in the 1990s. That respite may not last, but Mr. Zhou is The return on investment has fallen as more in- right that Beijing can’t afford to wait. Due to redustries suffer from overcapacity. tire next March, the Governor may speak only Beijing recognizes the need to rebalance to- for reform-minded technocrats. But perhaps his ward consumption and foster productivity signal flare means that supreme leader Xi Jingrowth. In recent years, the government has ping wants to address China’s economic imbalforced some factories to close, ordered banks ances after he consolidates power at this to stop lending to “zombie firms” that are insol- month’s Party Congress. That would bring some vent, and ploughed money into research and de- near-term risks, but in the long run it would velopment. But it also favors state-owned en- promote China’s growth and prosperity. Regarding your editorials “Supreme Court ‘Gobbledygook’” (Oct. 4) and “Of Judges and Gerrymanders” (Oct. 3): Nowhere in the Constitution are political parties mentioned. Were the Supreme Court to allow a standard for gerrymandering where the percentage of “wasted” votes for Democratic voters exceeded by too large a margin those for Republican voters (or vice versa), then it will have enshrined and supported the two current major parties. This would make the task of growing a new party that much harder. Should Justice Anthony Kennedy wish to view this as a First Amendment free-speech issue, he should consider how it would infringe on the free-speech rights of those voters who are supporters of third parties, or of no party. GARY KAYS Cape Girardeau, Mo. The Supreme Court should not neglect its duty to uphold the republican principles enshrined in the Constitution, even if the exercise is challenging and the solution imperfect. JAMES C. LIDDELL Washington Voter competition is vital to providing the highest quality political system. It forces competing candidates to offer new ideas that attract wider acceptance across ideological, racial and social boundaries. Democracy is truly damaged when there are stagnant and established leaders with little to no concern for the viewpoints of a wider slice of the American public. I agree that the Supreme Court should stay away from entering into the fray of partisan gerrymandering. However, we have a federal branch that is designed to deal with hotly debated political issues. Congress, not You mistake judicial modesty for the courts, should legislate to prohibit judicial deference. While courts redistricting for purely political adshould not interfere unduly in matters vantage and require that states conthat the Constitution explicitly vests sider effects on voter competition, at in the legislative or executive least minimally. You could call it pobranches of government, the notion litical antitrust. that the judiciary’s default position ROBERT KUHN University of Michigan Law School should be subservient to the political Ann Arbor, Mich. branches is misguided. The framers intended for the federal judiciary to A quick glance at a map of one of be coequal to its political counterthose over-gerrymandered districts parts, serving as an indispensable suggests a simple solution: Enforce an check against an encroaching federal government. What will be left of judi- upper limit to the ratio of the length of the perimeter to the area. cial review if the Supreme Court JERRY BAUCK cedes to politicians the power to elect Tempe, Ariz. themselves? Jones Act Protectionism and American Power The advice to relax the Jones Act restrictions on shipping to Puerto Rico (“A Jones Act Head Fake on Puerto Rico,” Review & Outlook, Oct. 7) and the eventual repeal of the act would make sense if you also campaigned for the repeal of the laws and regulations that restrict U.S. shipping companies from being price competitive on the world market. The labor laws and construction-related regulations that have reduced the U.S. merchant marine service from the force that helped win a world war to a minimal presence in the world shipping market have as much impact on the cost of U.S. goods delivered by ship to Puerto Rico as does the Jones Act. By the way, Hawaii, American Samoa, American Tahiti, Guam and the U.S. Virgin Islands are subject to the same regulations. Please also remember that goods shipped from other than U.S. ports do not require U.S.flagged bottoms. Maybe the real answer is to restore the U.S. shipping industry and commercial shipbuilding industry to a competitive stance and make the Jones Act meaningless. JACK HAMILTON Silverdale, Wash. We aren’t alone in codifying our protectionist interests. Most seafaring nations (Norway, U.K., Greece, Philippines, India, etc.) have solid cabotage laws similar to our Jones Act. They have never allowed foreign- Would Cashlessness Work In Puerto Rico Sans Power? Economists tell us that money performs at least two important roles: It is a medium of exchange and a store of value or a highly liquid form in which to hold wealth. In “Should We Move to a Mostly Cashless Society?” (Journal Report, Sept. 25), Kenneth S. Rogoff’s objections to cash focus on the role of currency as a medium of exchange. Yet U.S. currency and the euro are widely used internationally as a store of value, and that use is likely to continue so long as the world is in some form of turmoil. The store of value role performed by currency argues against abolishing the $100 and $50 denomination notes. GAIL E. MAKINEN Arlington, Va. When hurricanes Harvey, Irma and Maria knocked out power, cellphones and cable, people were forced to use cash because credit-card readers failed and data transmission couldn’t occur and merchants were accepting only cash. The same applies to other natural-disaster scenarios. ROBERT E. PANOFF Miami flagged vessels to carry freight or passengers between their domestic ports. Nations don’t exchange this right—certainly not in the past 100 years. When nations have relaxed their cabotage laws (as Norway did by easing work rules for seafarers in 2015) it was only for the purpose of strengthening their own competitive position. This is also why we as a nation, and most other nations, do not allow international-flag air carriers to serve the domestic market. TED L. SYKES Evanston, Ill. An argument for keeping the Jones Act is that the U.S. possesses “only 99 ocean-going vessels.” Without the Jones Act that number might well be in single digits. American shipbuilding and repair is on life support. Some yards are disparagingly referred to as “bicycle shops” by those in the know. The U.S. merchant flag fleet is 26th in the world in numbers. Tonnage isn’t much higher. During World War II the U.S. launched a Liberty ship every day. No longer is that remotely possible. And the remaining shipyards have an aging workforce, with many facilities kept in business only by military contracts. Sea power—military and commercial—is one. The next logical step to eliminating the Jones Act would be to outsource the Navy and Coast Guard. National security may be dreaded protectionism of a sort, but who doesn’t wish to be physically protected? CAPT. RAYMOND J. BROWN, USCG (RET.) Londonderry, N.H. Guns and Travel: When Two Good Legal Rights Conflict On cue, the left including a number of writers to the Journal (“Do Something, Anything, About Gun Violence,” Letters, Oct. 6) demand an absolute ban on a right enumerated in the Constitution on the grounds of public safety. I find this interesting especially in light of how the left reacted to President Trump’s travel ban earlier this year. That ban, which was neither permanent nor against travellers from most Muslim-majority countries, caused protests by the left, even though this, too, was premised on the idea that saving lives justified the infringement of protected individual rights. MARC A. GREENDORFER Zachor Legal Institute San Ramon, Calif. Pepper ... And Salt THE WALL STREET JOURNAL CORRECTION An image that ran with an Oct. 9 review of “Morgan: Mind of the Collector” shows a work of art depicting a Crucifixion from c. 1325-50. The original caption mentioned a different artwork. Letters intended for publication should be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, or emailed to firstname.lastname@example.org. Please include your city and state. All letters are subject to editing, and unpublished letters can be neither acknowledged nor returned. “I may be domesticated, but I do have a wild side.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | A15 OPINION By David B. Rivkin Jr. And James L. Connaughton A s President Trump decides whether to certify his predecessor’s nuclear deal with Iran, here’s another wrinkle he should keep in mind: The deal’s implementation violates federal law, namely the American Medical Isotopes Production Act of 2012. That statute seeks to end the nuclear-proliferation risk associated with foreign production of radioactive substances for medical use using weapons-grade highly enriched uranium. U.S. doctors use a molybdenum Obama let Tehran get into the medical-isotope business, contrary to the intent of Congress. isotope, moly-99, in 20 million procedures annually to detect early cancer, heart disease and other lethal illnesses. But the U.S. has no domestic production capability, relying instead on foreign suppliers who obtain the necessary highly enriched uranium from the U.S. government. In enacting the 2012 law, Congress sought to end exports of highly enriched uranium while ramping up sufficient domestic production of moly-99 to satisfy U.S. needs. Since America uses roughly half of the world’s moly-99, robust U.S. production would cramp the ability of foreign isotope suppliers to control the market and sell their wares globally. Under the 2012 law, the National Nuclear Security Administration is supposed to implement programs to encourage U.S. entrepreneurs to develop ways of making moly-99 without using highly enriched uranium, with the goal of making enough of it to justify permanently ending U.S. exports of highly enriched uranium. The Obama administration conspicuously failed to fulfill the law’s requirements. Moly-99 is not being produced in the U.S. and the U.S. government continues to export weapons-grade uranium overseas. The Iran deal makes matters worse. It specifically permits Tehran an unlimited right to generate highly enriched uranium for use in medical isotope production. Iran is free to join with other producers to control supply and price. Earlier this year Ali Akbar Salehi, Iran’s former lead nuclear negotiator and now head of the Atomic Energy Organization of Iran, declared Iran’s intention to become a major supplier of medical isotopes. Most significantly, the Iran deal’s Joint Comprehensive Plan of Action commits the U.S. and other parties to assist Iranian medical isotope development with technology transfer, project finance, export credits and other forms of investment. The European Union has established a joint nuclear cooperation working group with Iran. The U.S. cannot in good faith implement these obligations without evading its obligation under the American Medical Isotopes Production Act to curtail such foreign medical isotope production. Under U.S. law, there is no question which obligation prevails. The Obama administration, knowing the Senate would never ratify the JCPOA as a treaty, made it an “executive agreement” instead. Such agreements can have the force of law, but under our Constitution the president cannot unilaterally repeal a statute. It’s another reason the administration should declare the Iran deal null and void. Mr. Rivkin, a Washington-based constitutional lawyer, served at the Justice Department and White House Counsel’s Office in the Reagan and George H.W. Bush administrations. Mr. Connaughton served as chairman of the White House Council on Environmental Quality, 2001-09. Justice Holmes’s Free-Speech Lesson By Richard Dooling I f you are absolutely certain that President Trump is or is not an idiot, that climate change is or is not the most pressing problem of our age, that abortion is or is not murder, that football players should or should not be allowed to kneel during the national anthem, that our nation needs more or fewer gun laws, welcome! Most of us feel the same way. Absolute certainty is common, as is the suspicion that anybody who is absolutely certain of the opposite view must be evil, ignorant or a gullible consumer of fake news. Along with absolute certainty comes the understandable impulse to regulate or ban the speech of your opponent. Why allow evil and ignorant people to infect others with falsehoods and dangerous ideas? Why not take away the licenses of broadcasters whose news departments have the wrong slant? Why not make hate speech illegal? Almost a century ago, Justice Oliver Wendell Holmes Jr., wrestled with similar questions in a pair of Espionage Act cases. Holmes was absolutely certain that in most cases individual rights are subordinate to the needs of the state, and that the First Amendment did not protect an American citizen named Charles Schenck from prosecution for printing and mailing circulars opposing the draft. In 1919 Holmes wrote to that effect for a unanimous Court in Schenck v. U.S., famous for the misbegotten “fire in a crowded theater” analogy. Schenck also introduced the “clear and present danger” test, which most people think of as speech-protective, but according to Holmes and his colleagues was not By Henry I. Miller S hould Americans be allowed to edit their DNA to prevent genetic diseases in their children? That question, which once might have sounded like science fiction, is stirring debate as breakthroughs bring the idea closer to reality. Bioethicists and activists, worried about falling down the slippery slope to genetically modified Olympic athletes, are calling for more regulation. The bigger concern is exactly the opposite—that this kind of excessive introspection will cause patients to suffer and even die needlessly. Anachronistic restrictions at the Food and Drug Administration and the National Institutes of Health effectively ban gene-editing research in human embryos that would lead to implantation and births. These prohibitions are inhibiting critical clinical research and should be lifted immediately. Curing genetic diseases has been a goal of biotechnology since the 1970s, when the molecular techniques for modifying DNA were invented. So far most of the clinical work on “gene therapy” has involved treating the “somatic” cells that make up, say, the liver or the blood. That altered DNA cannot be passed down to the patient’s offspring. In 1990 a 4-year-old with “bubble boy disease,” a genetic defect called Severe Combined Immunodeficiency, was first treated at By Yousif al-Jabouri I was born 40 years ago in Baghdad. I am married with two children, an 11-year-old boy and an 8year-old girl. We have been living in the U.S. since 2014. I worked with the U.S. Army as an interpreter between 2004 and 2009 on Forward Operating Base Warrior in Kirkuk province. I began working for the U.S. because I believed in the honest efforts of the American soldiers to create a better Iraq, with Robert Thomson Chief Executive Officer, News Corp Gerard Baker Editor in Chief William Lewis Chief Executive Officer and Publisher Paul A. Gigot, Editor of the Editorial Page; Daniel Henninger, Deputy Editor, Editorial Page WALL STREET JOURNAL MANAGEMENT: Suzi Watford, Marketing and Circulation; Joseph B. Vincent, Operations; Larry L. Hoffman, Production EDITORIAL AND CORPORATE HEADQUARTERS: 1211 Avenue of the Americas, New York, N.Y., 10036 Telephone 1-800-DOWJONES The more certain you are, the more you should resist the temptation to silence those who disagree. Holmes’s dissent in Abrams gave birth to modern First Amendment jurisprudence, with its veneration for the marketplace of ideas. He began by observing that it makes perfect sense to persecute people for their opinions: “If you have no doubt of your premises or your power and want a certain result with all your heart you naturally express your wishes in law and sweep away all opposition.” The problem, Holmes realized, is that we are almost always absolutely certain of our premises, but sometimes we are wrong. Consider the contemporary example of gay rights. The American Psychiatric Association publishes a reference guide, the Diagnostic and Statistical Manual of Mental Disorders, currently in its fifth edition. Originally published in 1952, the DSM listed homosexuality as a mental disorder of one kind or another until 1987. These days, some psychiatrists are pushing to have “homophobia” listed as a mental illness. If that happens, would the APA be announcing that a majority of its members were mentally ill until 1987? Fifty years ago, the majority of psychiatrists, and the majority of people, were absolutely certain that homosexuality was a mental disorder. If we could go back in time and ask them if gay people should be allowed to argue in public that homosexuality Mr. Dooling teaches at the University of Nebraska College of Law and has published seven books. the National Institutes of Health. A string of qualified successes followed, with promising early results for afflictions ranging from fatal genetic diseases to Parkinson’s. More controversial is editing the DNA of eggs, sperm and embryos, since those changes would be passed on to future generations. Pre-clinical research is moving swiftly: A multinational team led by Shoukhrat Mitalipov, an embryologist at Oregon Health Two-thirds of Americans support therapeutic use, but regulators are still stuck in the 1970s. and Science University, has corrected in human embryos an abnormal gene called MYBPC3, which can cause a condition marked by cardiac arrhythmia, heart failure and sudden death. That research, published in August, represents a major advance for three reasons. First, of the 58 embryos manipulated with a gene-editing system called Crispr, the MYBPC3 gene was repaired in 42—a rate of success that’s unprecedented in this kind of study. Second, the gene-editing system appears to have worked with extraordinary accuracy, avoiding the unwanted (“off-target”) changes to DNA that had plagued earlier attempts. Third, all of the cells in the successfully modified embryos contained the normal DNA. If one of the study’s corrected embryos had been implanted in a woman’s uterus, there’s a reasonable chance it would have become a healthy baby. This type of research is also taking place abroad. Last month a Chinese group led by Junjiu Huang announced it had used a refinement of the Crispr system on human embryos to correct the mutated gene responsible for a blood disorder called beta-thalassemia. As to the ethics, it would be unacceptable to modify normal embryos— the cliché about “designer babies”— but nobody is proposing to do that, and no American regulatory agency would approve it. If the concern is that embryos may be destroyed, parents with genetic diseases are already discarding many while using in vitro fertilization as a way to avoid passing on abnormal DNA. Today’s state-of-the-art approach is to create a set of embryos, test them for the faulty gene, implant a normal one, and discard the rest. The use of Crispr gene-editing to correct abnormal embryos would likely result in fewer being destroyed. These recent studies demonstrate how rapidly the field is moving. Using a more primitive approach, the MYBPC3 mutation was first corrected in mice only three years ago. Now, after the Oregon study, the technology is arguably at the stage where clinical trials could be undertaken to see whether gene-edited human embryos can develop into healthy babies. The potential to help millions of people avoid horrific genetic conditions is nearly within scientists’ grasp. What’s holding researchers back, at least in America, is outmoded regulations. The FDA is blocked by law from accepting applications for research involving gene editing of the human germ line—meaning eggs, sperm and embryos. The NIH, whose approval also would be needed, is similarly barred from even considering applications to conduct such experiments in humans. These rules date as far back as the 1970s, when the technology was in its infancy. It’s easy to invoke hypothetical fears when actual lifesaving interventions are decades away. Today they aren’t—and desperate patients deserve access to whatever cures this technology may be able to provide. The public thinks so, too. A survey this summer found that nearly two-thirds of Americans support therapeutic gene editing—in somatic and germ-line cells alike. Popular opinion is in tune with scientific reality. Legislators and regulators need to catch up. Dr. Miller, a physician and molecular biologist, is a fellow at Stanford University’s Hoover Institution. He was the founding director of the FDA’s Office of Biotechnology. America Took Me In. Is There No Room for My Family? PUBLISHED SINCE 1889 BY DOW JONES & COMPANY DEPUTY MANAGING EDITORS: Michael W. Miller, Senior Deputy; Thorold Barker, Europe; Paul Beckett, Washington; Andrew Dowell, Asia; Christine Glancey, Operations; Jennifer J. Hicks, Digital; Neal Lipschutz, Standards; Alex Martin, News; Shazna Nessa, Visuals; Ann Podd, Initiatives; Matthew Rose, Enterprise; Stephen Wisnefski, Professional News enough to protect a man who merely advocated resisting the draft. Nine months later, in Abrams v. U.S., Holmes changed his mind about the First Amendment. As described in Thomas Healy’s 2013 book, “The Great Dissent,” Holmes reconsidered his position after reading articles and books sent to him by Zechariah Chafee, Harold Laski and other prominent free-speech advocates. is not a mental disorder, many of them would say no. We already “know” it is a mental illness—even medical doctors and the Supreme Court agree. Holmes’s radical idea was that we are too often wrong. When we are wrong, the consequences can be dire. When we are not only absolutely certain but also right, what is the harm in allowing other views to be heard? The truth needs no protectors and will eventually win out, but nobody said it better than Holmes: “When men have realized that time has upset many fighting faiths, they may come to believe even more than they believe the very foundations of their own conduct that the ultimate good desired is better reached by free trade in ideas—that the best test of truth is the power of the thought to get itself accepted in the competition of the market, and that truth is the only ground upon which their wishes safely can be carried out. That at any rate is the theory of our Constitution. It is an experiment, as all life is an experiment. Every year if not every day we have to wager our salvation upon some prophecy based upon imperfect knowledge. While that experiment is part of our system I think that we should be eternally vigilant against attempts to check the expression of opinions that we loathe and believe to be fraught with death.” Maybe you disagree with Justice Holmes. But thanks to the First Amendment, you are free to argue against him and let the best idea win. Gene Editing Is Here, and Desperate Patients Want It Rupert Murdoch Executive Chairman, News Corp Matthew J. Murray Deputy Editor in Chief PHIL FOSTER The Iran Deal Violates U.S. Law DOW JONES MANAGEMENT: Mark Musgrave, Chief People Officer; Edward Roussel, Innovation & Communications; Anna Sedgley, Chief Operating Officer & CFO; Katie Vanneck-Smith, President OPERATING EXECUTIVES: Ramin Beheshti, Product & Technology; Jason P. Conti, General Counsel; Frank Filippo, Print Products & Services; Steve Grycuk, Customer Service; Kristin Heitmann, Transformation; Nancy McNeill, Advertising & Corporate Sales; Jonathan Wright, International DJ Media Group: Almar Latour, Publisher; Kenneth Breen, Commercial Professional Information Business: Christopher Lloyd, Head; Ingrid Verschuren, Deputy Head freedom and democracy, and I believed that Iraqis must have a role in this operation. As an interpreter, I often had to act like a soldier, only without a weapon. I was exposed to the same danger as the American soldiers, except that I was unarmed and vulnerable to attacks on my days off, when I was not under the unit’s protection. I therefore had to live a double life, pretending to work for an oil company in northern Iraq to justify my absence to friends and relatives, whom I kept in the dark for security reasons. During my employment with the U.S. Army, I received many threats from hostile militias, which continued even after I resigned in 2009, when I heard that the Iraqi government wanted access to the database of local interpreters. That was a scary thing, because the Iraqi government in late-2008 had been infiltrated by hostile entities. I had seen what extremists do to people like me, accused of treason for working with the U.S. I knew these killers wouldn’t spare my family if they managed to find me. Seeking a better life elsewhere for the sake of my children, I applied for and was granted a Special Immigrant Visa for those who had worked with U.S. forces. While we are grateful to live in safety now, I wish I could say the same for the family I had to leave behind. My mother, brothers and sister, still in Iraq, remain in danger. They are considered the close family of a traitor and militias will often go after the relatives to get to their main target. Because my family members share my last name, I am unable to use my real name in this public forum. It’s too dangerous for them. As an Iraqi who helped U.S. troops, I wasn’t safe. My mother, sister and brothers still aren’t. I thought I could bring my family to safety by applying on their behalf to the Direct Access Program for Iraqis with U.S. ties. This program allows eligible Iraqis to be resettled as refugees, but there is a backlog of around 60,000 individuals, so I knew the process would take a long time. I did not realize that things could get even harder. Last month President Trump decided to lower the refugee admissions ceiling to 45,000, the lowest number since the enactment of the Refugee Act of 1980. Iraqis who are in danger due to their American connections have to go through the U.S. refugee resettlement process to reach safety, so the effects of this policy will slow down the process for all refugees in it, including my family. There are no other options for them from inside Iraq. Only the most persecuted and vulnerable refugees will ever be considered for resettlement. Doesn’t my family fall into that category? I understand the president wishes to protect Americans from terrorism, but my family members are the ones fleeing the terrorists. They are at great risk of being targeted, as they live in a country where Shiite militias and Islamic State are still influential and looking to make an example out of those who worked with the Americans. Reducing the number of resettlement spots directly puts more lives at risk. I reached safety in a country that accepted me, my wife and our children. We were treated not as refugees but as citizens. I hope this country will do the same for the rest of my family and others who are in similar situations. Congress can take legislative action to remedy the situation, but the president has the authority to change his mind and increase refugee admissions to respond to an urgent need. He has shifted on policy before, and this would be an appropriate instance for him to change his mind again. Protecting the persecuted is the right thing to do, and it’s what America has always done. That is why I offered my help to Americans in Iraq. I hope the U.S. will continue to do the right thing and resettle refugees, like my family, who live in fear. Yousif al-Jabouri is a pseudonym for a case worker at the International Refugee Assistance Project. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A16 | Friday, October 13, 2017 THE WALL STREET JOURNAL. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com TECHNOLOGY: CEOS SCRAMBLE TO HEAD OFF CYBERATTACKS B4 BUSINESS & FINANCE © 2017 Dow Jones & Company. All Rights Reserved. S&P 2550.93 g 0.17% S&P FIN g 0.72% S&P IT À 0.04% Friday, October 13, 2017 | B1 THE WALL STREET JOURNAL. * * * ** DJ TRANS À 0.62% WSJ $ IDX g 0.005% LIBOR 3M 1.359 NIKKEI (Midday) 21003.50 À 0.23% See more at WSJMarkets.com Card Lending, Cost Cuts Fortify Banks Results at J.P. Morgan and Citigroup point to worsening quality of consumer credit BY TELIS DEMOS AND EMILY GLAZER Growth in credit-card lending and a tight rein on costs boosted third-quarter profits at J.P. Morgan Chase & Co. and Citigroup Inc., offsetting downbeat trading results and a still-challenging interest-rate environment. The results, though, pointed to early signs of a potential deterioration in consumer- Goldman To Lend To House Flippers credit quality, which could be a concern for many lenders and credit-card issuers. The results from J.P. Morgan and Citigroup, the Nos. 1 and 4 U.S. banks by assets, respectively, showed modest increases in revenue. But the focus on costs led net income to rise 7.1% at J.P. Morgan to $6.73 billion and 7.6% to $4.13 billion at Citigroup. “We tightly managed our expenses and again saw loan and deposit growth in both our consumer and institutional businesses,” Citigroup Chief Executive Michael Corbat told analysts Thursday. Citigroup’s efficiency ratio, or expenses as a percentage of revenue, improved to 56% for the quarter, better than the bank’s target of 58% for the year. J.P. Morgan’s fell to 55% from 57% a year earlier. Both firms managed to beat Wall Street expectations for both revenue and earnings per share. Their stocks fell, though, as the results gave investors few reasons to think shares could build markedly on heady gains experienced in the wake of last year’s presidential election. Since Donald Trump’s victory, Citigroup’s stock has advanced by nearly 50% and J.P. Morgan shares are up nearly 40%. Both have outpaced the broader stock market and the KBW Nasdaq Bank Index. Those gains reflected investor expectations for stronger economic growth, higher interest rates and looser regulations. But many of those hopes, such as for tax overhaul that would boost banks’ profits, have yet to materialize. J.P. Morgan shareholder Jason Ware, chief investment officer of Salt Lake City-based Albion Financial Group, said the banks’ results were “solid but perhaps not exceptional” and largely in line with expectations. On the all-important interest-rate front, the experience so far this year has been mixed. Rates have moved higher as the Federal Reserve has increased its short-term benchmark, but longer-term yields haven’t risen as much. That puts pressure on banks’ net-interest margins, or the difference in what they earn by borrowing and lending money. These margins declined at Citigroup from a year ago, while they rose slightly at J.P. Morgan. At both banks, though, the margins remain historically low. While net income grew at both banks, return on equity, a key measure of profitability, Please see BANKS page B2 Heard: Consumer credit is worry for small lenders...B12 Citi store cards 3Q 2017 4.70% 3Q 2016 3.90% Citi branded cards 2.84% 2.25% J.P. Morgan cards 2.87% 2.51% Source: the companies Chinese Try to Crack the Code for Fresh Food Online Fidelity Fires Star Money Manager JOHANNES EISELE/AGENCE FRANCE-PRESSE/GETTY IMAGES A star stock picker at mutual-fund company Fidelity Investments was fired last month for allegedly sexually harassing a junior female employee, according to an attorney for the woman and other people familiar with the matter. CRAB SEASON: Hairy crabs, named for bristles on their claws and legs, are a fall delicacy in China. Online rivals Alibaba and JD.com now consider sales of the crabs a vital part of efforts to persuade Chinese consumers to buy fresh food online. China Circuit, B4 Equifax Probes Possible New Breach BY ANNAMARIA ANDRIOTIS AND ROBERT MCMILLAN Equifax Inc. said Thursday that its website was used to serve “malicious content” to consumers. The issue was due to code created by an unnamed vendor that Equifax was using to collect performance data on the company’s website. Equifax, already under scrutiny for its security practices, moved one of its webpages offline “to conduct further analysis” amid reports of a possible hack on Thursday. It has removed the vendor’s code from its webpage. Equifax systems weren’t compromised, the company said in a statement. This latest cyber issue emerged five weeks after Equifax disclosed a massive hack that compromised vital personal information for potentially 145.5 million Americans. Following that, the company’s chief executive, as well as its chief information and security officers, retired. The source of this hack was a bug in the company’s online dispute portal. That dispute portal wasn’t affected by this more recent issue, Equifax said. Equifax shares fell nearly 3% at one point Thursday amid reports of a security problem and closed down 1.5% for the day. The malicious content was discovered earlier this week by security researcher Randy Abrams as he tried to examine his own credit report on the Equifax website. The problem was that Equifax’s site was delivering fraudulent Adobe Flash updates to some visitors who tried to obtain free credit reports. The updates, while appearing to be a STREETWISE | By James Mackintosh A Case for the Bulls Is Hard to Warrant Believers in the bull market have been making a oneword case for why this year’s rise in stocks is justified: earnings. With profits on a roll and the world economy in synchronized growth mode, what’s not to like? As the earnings season gets into full swing, analysts are predicting another great set of profit figures. Hurricane effects make the consensus forecast of 5.5% year-overyear growth for the S&P 500 even less certain than usual, but there’s no doubt that companies have delivered. The trouble is how investors have reacted. The market is expensive on virtually every measure, which could be justified by strong earnings growth in the future. But when those earnings come through, the market ought to get less expensive. Net-charge-off rate for bank cards THE WALL STREET JOURNAL. BY LIZ HOFFMAN AND PETER RUDEGEAIR Goldman Sachs Group Inc.’s push to lend more has taken it to some strange places for a storied, elite Wall Street firm. The latest: house flipping. Goldman is acquiring Genesis Capital LLC, a closely held Los Angeles firm that backs investors seeking to buy, spruce up and quickly sell homes. Genesis, founded in 2007, has been growing rapidly as the housing market continues to recover. It lent $1 billion last year, up from $50 million in 2013. Goldman’s interest in a small house-flipping financier reflects both the buoyancy of the residential real-estate market and the Wall Street firm’s hunger for new profit engines as its core trading business remains stuck in a postcrisis slump. Last year, Goldman launched Marcus, an online personallending platform that offers a lower-cost alternative for borrowers deep in credit-card debt. A new partnership with Fidelity Investments will offer Goldman loans to millions of individual brokerage accounts. House flipping, once a symbol of the real-estate market’s excess, has become hot again. Borrowers took out $40 billion of these loans in 2016, the most since 2006, when flippers rushed to capitalize on rising home prices, and in some cases fueled the mania. Genesis’s loans average about $1 million, carry rates of as much as 12% and run for about a year. Since 2014, they have been funded by Oaktree Capital Management LP, an alternative-asset giant. Genesis will swap Oaktree’s backing for deeper pockets at Please see HOUSES page B2 Slippage Instead, it has become even pricier, meaning still-faster growth in profits is anticipated. The bull case is even harder to justify. The simplest way to look at this is to break down price changes into changes in earnings and valuation. So long as stock prices rise by less than earnings, the valuation, or price/earnings ratio, comes down. The P/E ratio can be measured in many ways, but at the moment the two most popular gauges—the priceto-forward operating earnings and the cyclically adjusted P/E ratio, or CAPE— have rarely been higher. In the past, such high valuations were often followed by disappointment for investors, because earnings didn’t come through to justify them. There is a good and a bad way for a high P/E ratio to drop back down to more normal levels. The bad way Proﬁts of Boom S&P 500 earnings per share, quarterly* $30 15 0 –15 –30 Operating earnings Earnings as reported ’88 ’90 2000 ’10 *Data for the two ﬁnal quarters of 2017 are estimates. Source: S&P Dow Jones Indices THE WALL STREET JOURNAL. is that prices fall, which hurts. The good way is that earnings rise by more than share prices, and the market grows into its valuation. An extreme example of a company growing into its valuation is Apple Inc. At the top of the dot-com bubble in 2000, Apple’s shares traded at 34 times its (paltry) earnings. It now trades at less than 18 times trailing earnings and only 14 times estimates for the next 12 months, according to Thomson Reuters. Apple has, of course, been a fabulous investment despite the lower valuation, because earnings rose 50-fold in the past 17 years, allowing the stock price to soar even as the P/E ratio came down. Unfortunately for the bulls, this year hasn’t been a case of companies growing into their valuations. It hasn’t even been a case of forecast earnings going up fast enough that companies might soon grow into their earnings. In fact, it has been the opposite, at least among the S&P 500. Only 78 companies out of the 490 for which FactSet Please see STREET page B10 new version of Adobe Systems Inc.’s widely used software were fake, said Mr. Abrams. If installed, the updates would likely install malicious “adware” on the user’s computer, he said. “They just want to hijack your browser and redirect it to disreputable sites,” Mr. Abrams said of the adware creators. Mr. Abrams noted the problem in a blog post and this was later reported on by website Ars Technica. Bill would boost oversight of credit-reporting firms......... B10 INSIDE GM TO IDLE FACTORY AS SALES COOL AUTOS, B3 HSBC NAMES INSIDER NEW CHIEF BANKING, B10 By Kirsten Grind, Sarah Krouse and Jim Oberman Gavin Baker, 41 years old, was one of the Boston-based investment firm’s most wellknown fund managers, placing bets on technology companies such as Uber Technologies Inc. and Tesla Inc. during his eight years at the helm of the $16.4 billion Fidelity OTC Portfolio. He is also well known in Silicon Valley among venture capitalists and startup firms, as well as in the asset-management industry. A spokesman for Mr. Baker said he “strenuously” denies any “supposed” allegations of sexual harassment. “Gavin left Fidelity amicably a few weeks before planning to become engaged to his longtime girlfriend who is an analyst and fund manager there, as he believes his new fiancée and he should not Gavin Baker was accused of sexual harassment by a junior female employee at Fidelity. work at the same firm. After a great 18 years at Fidelity that he’s very grateful to have experienced he’s excited to begin a new job later this month,” the spokesman said in a statement. A spokesman for Fidelity said that, in general, “when allegations of these sorts arise, we investigate them immediately and take prompt and appropriate action.” The female employee is a 26-year-old equity-research associate at the firm, and is on leave, people familiar with the matter said. Other junior employees also have complained to superiors about harassment by Mr. Baker, people familiar with the matter said. After the woman filed an internal complaint to Fidelity’s human resources department about the alleged harassment, Fidelity Chief Executive Abigail Johnson made the decision to fire Mr. Baker, people familiar with the matter said. Following Mr. Baker’s dismissal, the company is undertaking a review of the culture within its stock picking unit, said a person familiar with the review. Fidelity is among the world’s largest investment and brokerage firms, with $2.13 trillion in assets under management and $5.7 trillion in Please see FIRED page B2 B2 | Friday, October 13, 2017 * **** INDEX TO BUSINESSES THE WALL STREET JOURNAL. BUSINESS & FINANCE These indexes cite notable references to most parent companies and businesspeople in today’s edition. Articles on regional page inserts aren’t cited in these indexes. B Dow Jones.............A1,A8 DXC Technology........B11 E easyJet........................B6 Equifax............B1,B4,B10 Experian .................... B10 C CarGurus ................... B11 Charter Communications ............................... A1,A2 Citigroup.......B1,B11,B12 Comcast ...................... A1 ContextMedia Health.A9 Costco Wholesale.......B2 N Nissan Motor..............B3 Novartis.......................B3 O-R remains at historically low levels. J.P. Morgan’s trading revenue dropped 21% to $4.53 billion, hurt by a 27% falloff in fixed-income trading. Citigroup’s trading desk didn’t suffer as sharp a decline, but trading was still down 11% from a year ago to $3.63 billion. J.P. Morgan finance chief Marianne Lake said during a call with analysts that the bank expects sluggish trading activity to continue into the fourth quarter and there were “no obvious catalysts on the horizon.” Both banks found bright spots with consumers. Citigroup said it saw a 12% rise in revenue in its core North American retail-banking unit, to $1.2 billion, in part as more customers used its wealth-management services. It also saw a 6% jump in credit-card lending globally. “We would rate the health of the consumer right now as pretty good,” Mr. Corbat said. “The combination of jobs, a little bit of wage growth, stable housing and rising asset prices has left the consumer in a pretty good place.” J.P. Morgan also saw growth in its consumer unit, including an 8% rise in U.S. interest-bearing deposits. Ms. Lake said revenue in its credit-card business is expected to grow. However, there are early signs that credit quality is slipping. Consumer payback rates have been a concern for lenders across the board, even G General Motors...........B3 Genesis Capital...........B1 Gilead Sciences...........B3 Goldman Sachs Group ............................... A1,B1 H-I HSBC ......................... B10 Innate ImmunotherapeuticsA3 JD.com.........................B4 J.P. Morgan Chase ...................... B1,B11,B12 Juniper Networks.....B12 JWB Real Estate Capital .....................................B2 K Kite Pharma................B3 Kobe Steel...................B3 L Oaktree Capital Management.............B1 Rio Tinto ..................... B6 S Samsung Electronics..B6 Seven & I Holdings...B12 Shanghai Futures Exchange.................B11 Snap.............................B2 Sony Pictures Entertainment..........B4 Southwest Airlines .... B6 Sterlite Industries......B6 Sunoco.......................B12 T Target..........................B4 Tesla............................B1 Thames Water..........B12 Time Warner...............A2 TransUnion................B10 U Uber Technologies ...... B1 United Continental Holdings....................B6 V Vedanta Resources.....B6 Viacom ........................ A2 Lockheed Martin.........A7 M Deloitte ..................... B10 Delta Air Lines ........... B6 Deutsche Lufthansa...B6 Dish Network........A1,A2 MGM Resorts International.............A3 Monarch Airlines........B6 Morgan Stanley........B12 W-Y Wal-Mart Stores........A2 Walt Disney .......... A1,A2 Weinstein..............A2,B3 Wells Fargo...............B11 Yahoo...........................B4 INDEX TO PEOPLE A Hackett, Isa Dick........A2 Hansen, Michael.........B4 Morris, Michael .......... A2 I Price, Roy....................A1 B Isaka, Ryuichi............B12 Baker, Gavin................B1 Berman, Craig.............A1 Bezos, Jeff..................A2 Briesemann, Daniel..B11 J C Cavanaugh, Karyn.....B11 Colby, Jim..................B12 Corbat, Michael...........B1 F Feinberg, Lila..............A2 Flint, John.................B10 G-H Gait, Paul .................... B6 Gerspach, John ........... B2 Gildersleeve, Gary .... B12 Glasenberg, Ivan.........B6 Goodell, Roger.......A1,A8 Johnson, Abigail.........B1 K Kalra, Sonu..................B2 Kelley, David E............A2 Kohli, Aaron..............B11 Kwon Oh-hyun............B6 L Lake, Marianne...........B2 Lin, Christopher..........B2 Loeb, Daniel..............B12 M Martinez, Laurent.......B3 Mayer, Marissa...........B4 McGovern, Tom...........B2 Moffett, Craig.............A2 BANKS Continued from the prior page remained relatively subdued. J.P. Morgan’s return for the third quarter was 11%. That is above the bank’s theoretical cost of capital of 10%, but not by much. Citigroup, meanwhile, posted a return of 7.3%. Although this is up from 6.8% in the prior quarter and a year earlier, it is still well below the 10% level. Citigroup for years hasn’t posted a return that consistently cleared that hurdle. The banks also had to combat a decline in trading revenue in the third quarter, as financial-market volatility HOUSES Continued from the prior page Goldman, which in recent years bought a deposit base from GE Capital. Terms of Goldman’s deal with Genesis weren’t disclosed. Goldman has been pushing lending as its traditional engines of trading and banking either sputter or mature. It has chosen its spots carefully, avoiding credit cards and other businesses that would put it in direct competition with large rivals and instead focusing on niche products where there is room to grow. Buying Genesis inches Goldman closer to residential mortgages—an area executives have eyed warily, mindful of the public-relations and regulatory drubbing the firm took during the financial crisis for its subprime-trading activities. Home-flipping finance, while a niche of the giant residential-mortgage market, is again a big business, after falling sharply following the cri- FIRED Continued from the prior page assets under administration. Mr. Baker’s former fund, the Fidelity OTC Portfolio, returned an average 21% annually over the past five years, compared with a total return of 15% for the S&P 500 during that time, better than 99% of its peers, according to fund-research firm Morningstar Inc. Through Oct. 11, the fund is up 33%, compared with 16% for the S&P 500. Sonu Kalra and Christopher Lin, who have each been with BY ALEXANDRA BRUELL Zhao, Yue....................B4 Facebook...........A2,B2,B4 Fidelity Investments..B1 Freeport-McMoRan...B11 D Ackerly, John .............. B4 Agarwal, Anil..............B6 Advertisers Give Amazon NFL a Try Advertisers who purchased spots on Amazon.com Inc.’s NFL telecasts are sizing up the platform’s potential, and determining how best to exploit it. It is an important test for Amazon as it ventures into live sports and tries to become a digital advertising powerhouse. For some, the appeal is Amazon’s promise of “attribution,” the idea that the company can show that ads led to an increase in brand awareness or online store sales, including on Amazon.com. Marketers crave that data and have gotten uneven results in television. For others, the draw is an affluent audience—National Football League games can only be viewed by subscribers to Amazon’s $99-a-year Prime service. “It’s an opportunity to partner with Amazon and to understand, over the course of the season, Amazon consumers, NFL content and how they may or may not interact within Amazon’s core platform of e-commerce,” said Tom McGovern, president of Optimum Sports, a sports media and marketing agency owned by ad giant Omnicom. Sling TV, which sells an online package of cable-TV channels and sees potential overlap with Amazon’s streaming audience, was among the advertisers that bought an Amazon NFL ad package. Other advertisers include Showtime, Gillette, Pepsi and Hyundai. “Part of the incentive is that these Amazon Prime users are affluent; they’re folks that purchase things online, and we think and we’re pretty sure that they’re also more likely to watch streaming,” said Warren Schlichting, executive vice president of marketing, programming and media sales at Sling TV and parent company Dish. F J Bank of America.......B11 BHP Billiton................B6 BlackRock....................B6 Boeing....................A7,B3 Morningstar................B2 P R Rieger, J.R.................B12 Riggs, Michael............B4 Ryan, Shawn...............A2 S Sandberg, Sheryl ........ B4 Schlichting, Warren....B2 Schneiderman, Eric...B10 Sifakis, Alex................B2 Smith, Richard..........B10 Stankey, John.............A2 W Ware, Jason................B1 Weinstein, Harvey B1,B3 Widmer, Michael.......B11 Wong, Tai..................B11 Z Amazon sought $2.8 million for a package that included inventory in each of its Thursday night games, as well as other ad inventory across Amazon’s platform. There were skeptics among advertisers and not everyone went all in: Some advertisers paid around $1 million less than the original asking price, according to people familiar with the deals. The online retail giant generated $1.1 billion in U.S. digital ad revenue in 2016, a small sum compared with Google’s $29.4 billion and Facebook Inc.’s $12.4 billion, according to eMarketer. But the e-commerce giant is viewed on Madison Avenue as an emerging rival to the socalled duopoly, due to its powerful data and deep pockets. “We’re very happy with advertiser response and are sold out,” said an Amazon spokes- as the U.S. labor market remains robust. Citigroup set aside $2.15 billion in the third quarter to cover loans that could turn 11% J.P. Morgan Chase’s return on equity for the third quarter bad in the future, about $400 million more than a year ago. Much of that uptick in provisions was for credit-card loans. The bank said that future charge-offs were increasing more quickly than antici- sis. About 35% of house-flippers today use borrowed money, a nine-year high, according to Attom Data Solutions, which tracks home sales. Alex Sifakis has taken out more than 100 loans from Genesis to renovate and sell homes in and around Jacksonville, Fla. Mr. Sifakis, 34 years old, got into the business in 2006 after attending a real-estate seminar on how to flip homes. He is now president of JWB Real Estate Capital, which has about 55 employees. When Mr. Sifakis started borrowing from Genesis three years ago, “there were not that many lenders out there,” he said. Now, rising home prices and falling inventories have attracted new lenders offering lower rates, as well as increased competition from new borrowers. “A lot more new home flip- the firm for more than a decade and invested previously in technology-related firms, now co-manage the fund. When Mr. Baker began the relationship with his fiancée, he requested and received permission from the company for an exemption from the firm’s policy concerning relationships between senior and junior employees, said people familiar with the matter. Another portfolio manager at Fidelity was also fired this year related to harassment of a junior employee, said people familiar with the matter. Mr. Baker, who joined Fidelity in 1999 as an equity re- search analyst, ascended to become one of the Boston firm’s highest-profile investors. As the manager of the Fidelity OTC Portfolio since 2009, Mr. Baker has earned a reputation as an investor able to gain access to early investments in technology startups and other fast-expanding companies. “What matters the most in venture capital and private investing is whether you’re invited to play,” Mr. Baker told The Wall Street Journal earlier this year. Lucrative bets Mr. Baker made include Tesla, Facebook Inc. and Activision Blizzard Inc. Investment in nonpublic companies comprised a small portion of the fund’s portfolio under Mr. Baker’s leadership, but included high-profile companies such as ride-sharing company Uber and Snapchat parent Snap Inc. before it went public. Despite his fund’s top performance, the OTC Portfolio hasn’t been immune from broad industry pressure on mutual funds run by stock pickers. Investors pulled a net $1.1 billion from the fund in 2016 and withdrew a net $146 million in the first nine months of the year, according to Morningstar. Investor spending on house-ﬂipping has risen in recent years, though it remains below precrisis peaks. $80 billion 2016 $39.9 billion 60 40 20 0 2000 ’02 ’04 ’06 Source: Attom Data Solutions ’08 ’10 ’12 ’14 ’16 THE WALL STREET JOURNAL. coverage of the two games averaged about 15 million viewers, according to figures from CBS. Some advertisers rebuffed Amazon’s ad packages, largely due to the requirement to buy non-NFL Amazon ad inventory such as display and video ads on Fire TV, Amazon.com and Amazon Prime’s TV shows. In some cases, media buyers that didn’t have clients that sell products on Amazon were also uninterested, because the Amazon data and research promised as part of the ad deal would be less valuable to them. An Amazon spokeswoman said, “We don’t share pricing or package details as a matter of policy—but can tell you that we offered a range of options at various price points depending on advertiser objectives, which may include additional Amazon media placements.” The Tampa Bay Buccaneers played the New England Patriots in Florida last week. pers are coming out of the woodwork,” he said. They “have seen the [TV] shows.” (HGTV has become one of the fastest-growing cable-TV channels by airing shows such as “Flip or Flop.”) Banks and other large financial firms are increasingly dabbling in the business, though few as directly as Goldman will now do. Wells Fargo & Co. and J.P. Morgan Chase & Co. have extended credit lines to fix-andflip lenders. Last year, Japanese investment bank Nomura Holdings Inc. securitized $126 million in loans from online real-estate lender LendingHome Corp. In recent months, buyers backed by Blackstone Group LP and Fortress Investment Group LLC have bought companies that specialize in these loans. Genesis’s loans will be booked through Goldman’s regulated banking entity, which is looking for places to deploy its growing stash of deposits. But because Genesis’s borrowers don’t intend to live in the properties they buy, their loans are generally classified as commercial credits. Fix-and-Flip woman in a statement regarding its NFL streaming effort. Amazon paid $50 million for the rights to stream 10 Thursday night NFL games, alongside CBS and NBC, which are splitting the season schedule. Amazon has access to 22 spots per game, including pre-, post- and in-game ads—inventory that on traditional TV goes to local broadcast stations. Some ad buyers were skeptical about Amazon’s ability to attract a big NFL audience, describing the buy as an “experiment.” After its first game on Sept. 28, Amazon said that the average world-wide audience watching Thursday Night Football on Prime for at least 30 seconds was 372,000. In the second game Amazon aired, the average audience grew to 391,000. By comparison, CBS and NFL Network’s television JASON BEHNKEN/ASSOCIATED PRESS A Activision Blizzard......B2 Advanced Micro Devices ...................................B11 Air Berlin.....................B6 Airbus..........................B3 Air China Cargo .......... B4 Albion Financial Group .....................................B1 Alibaba Group.............B4 Alitalia.........................B6 Alphabet......................A1 Amazon.com .................. A1,B2,B4,B12 AMC Networks...........A2 American Airlines Group .....................................B6 Anbang Insurance Group ...................................B12 Anglo American..........B6 Apple...........................B1 AT&T............................A1 pated, though not to alarming levels. Its forecast went from a 2.85% loss rate for the year to 2.95% next year for Citigroupbranded cards. “That’s a little bit higher than what we had previously considered,” Citigroup finance chief John Gerspach told analysts. Meanwhile, charge-offs for so-called store cards rose to 4.7% in third quarter from 3.9% a year earlier. J.P. Morgan set aside $1.46 billion in reserves in the third quarter, up from $1.13 billion a year earlier. At Citigroup, there was another cause for concern. Revenue from branded cards, which Citigroup markets directly to consumers, declined 1% from a year ago. The bank previously had suggested the second half of 2017 would deliver growth after years of investments—such as paying to take on the card business of Costco Wholesale Corp.—bore fruit. “As late as June, we believed that...we’d be able to deliver at least some level of year-over-year revenue growth,” Mr. Gerspach said. He added the bank was seeing tough competition in cards, where rivals have been offering increasingly generous inducements. Mr. Gerspach said he still expected the bank’s newest products, such as the Costco cards, to eventually deliver healthy growth. ADVERTISEMENT Legal Notices To advertise: 800-366-3975 or WSJ.com/classiﬁeds BANKRUPTCIES !" # $ % &'())( !" 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Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. * * Friday, October 13, 2017 | B3 BUSINESS NEWS Authorities in New York are re-examining allegations of sexual abuse by Harvey Weinstein, raising the prospect that the disgraced producer could face criminal charges. New York Police Department Chief of Detectives Robert Boyce earlier this week ordered the Special Victims Division to re-examine the evidence of an alleged assault in 2015, according to a law-enforcement official familiar with the investigation. Investigators on Thursday were looking at an incident when an Italian model taped the producer apologizing for touching her breasts, the official said. Manhattan District Attorney Cyrus Vance Jr. has come under scrutiny recently for not pursuing sexual-abuse charges in the case. “We’re re-examining all of Investigators were looking at an incident involving an Italian model. the case,” the official said. “If other victims come forward, we’ll investigate those as well.” Mr. Weinstein’s career and public reputation have rapidly imploded since a report last Thursday by the New York Times detailed a pattern of alleged sexual harassment and financial payouts to women over the past several decades. He was fired by the board of his Weinstein Co. studio on Sunday. The model’s account was one of several covered in an investigative report published by the New Yorker magazine this week. The model wore a wire for authorities, and the New Yorker published audio from the recording that features Mr. Weinstein repeatedly asking that she join him in his hotel room. In a statement, the department said it is “conducting a review to determine if there are any additional complaints relating to the Harvey Weinstein matter. No filed complaints have been identified as of this time.” In a statement last week, Mr. Weinstein apologized for how he had “behaved with colleagues in the past.” A representative for Mr. Weinstein declined to comment further on Thursday. British media on Thursday reported that U.K. police launched a probe into allegations against Mr. Weinstein. A spokesman for London’s Metropolitan Police wouldn’t confirm the reports, but when asked said police in the English county of Merseyside on Wednesday passed along an allegation of sexual assault that dated from the late 1980s. The U.K. doesn’t have a statute of limitations for sexual assault. New York’s statute of limitations is one year for a sexualassault claim and three years for a sexual-harassment claim. —Jenny Gross contributed to this article. Move is prompted by cooling auto sales in the U.S., especially of passenger cars BY MIKE COLIAS General Motors Co. plans to temporarily close a Detroit factory and deepen cuts in production of slow-selling cars at the plant, idling some workers and letting others go around the holiday season. GM’s Detroit-Hamtramck assembly plant will shut down for about six weeks starting in mid-November, said people familiar with the plan. Roughly 1,500 workers who help build four passenger-car models at the plant will be laid off. When operations resume, production will be scaled back 20%, costing about 200 workers their jobs, the people said. A GM spokesman declined to comment. The nation’s largest auto maker already laid off several hundred employees at the Detroit-Hamtramck factory by eliminating the evening work shift earlier this year. GM, like other auto makers, is revising production plans amid cooling U.S. vehicle sales, punctuated by a sharp contraction in the market for passenger cars. Consumers are opting for larger and more versatile sport-utility vehicles, with low prices at the fuel pump boosting the segment. The upshot is dealer lots packed with compact and midsize sedans that were staples of the U.S. auto market a few years back. GM, which has more passenger-car-only factories than its competitors, has moved aggressively to realign production amid the NICK KING FOR THE WALL STREET JOURNAL BY ZOLAN KANNO-YOUNGS AND ERICH SCHWARTZEL GM to Idle Plant, Eliminate Jobs General Motors intends to shut down its Detroit-Hamtramck assembly plant, shown in 2014, for about six weeks starting next month. shift in consumer tastes. Over the past year, GM has slashed passenger-car output, resulting in nearly 3,000 laidoff workers overall. Some have been transferred to busier plants making SUVs or components. The Detroit-Hamtramck plant, which straddles the border of the Motor City and its smaller neighbor, is GM’s least-productive assembly factory in North America, according WardsAuto.com. And the 32-year-old plant has been hit especially hard by the passenger-car slump. Workers there build four nameplates, including the small Chevrolet Volt plug-in hybrid and the Cadillac CT6, a large sedan introduced last year as the luxury brand’s flagship car. Demand for three of the plant’s products has fallen sharply in recent months, with the models piling up at dealerships. Dealers are sitting on a roughly 10-month supply of 20% How much production will be curbed when the factory reopens the Buick LaCrosse, another car built at the plant, according to WardsAuto.com. A twomonth supply is considered healthy. The cars are struggling to attract buyers even though most were recently redesigned. A fresh look for a model typically translates into stronger sales. Critics lauded the CT6 as on a par with German luxury cars, but sales are nonetheless falling short of GM’s goals. GM executives repeatedly have said they would cut output to align with demand, even though the reduced production hurts revenue. Car companies book revenue when they ship vehicles to dealerships, and GM had long been criticized for cranking out too many cars that require steep discounts to sell. GM finance chief Chuck Stevens told analysts in July that the company is “committed to take action on passenger cars, which we have done and will continue to do as required to align supply and demand.” Slow Lane Three models built at GM's Detroit-Hamtramck plant are ﬁnding fewer buyers. Thirdquarter vehicle sales and change from previous year: Chevrolet Impala 3Q 2017 3Q 2016 19,431 17,648 s 10% Chevrolet Volt 4,416 6,518 t32% Buick LaCrosse 3,326 5,866 t43% Cadillac CT6 2,731 3,412 t20% Source: the company THE WALL STREET JOURNAL. Tokyo Tells Kobe Steel to Fix Issue Airbus Ramps Up In Services BY SEAN MCLAIN AND CHIEKO TSUNEOKA TOKYO—Japan’s government pressed Kobe Steel Ltd. to resolve its data-falsification scandal quickly, amid worries the lapse will undermine the country’s reputation for high-quality manufacturing and the competitive advantage it affords. “Some have said that this problem could affect the trust in Japan’s manufacturing industry, and the ministry is greatly concerned about this,” said Akihiro Tada, the official who oversees the manufacturing industry at Japan’s Ministry of Economy, Trade and Industry. Mr. Tada spoke before a meeting with Kobe Steel President Hiroya Kawasaki on Thursday. The company was given two weeks to determine whether there are safety concerns with its products, Mr. Tada said. “We are really sorry that we created this situation,” Mr. Kawasaki said on Thursday. The company on Sunday disclosed that it had shipped tons of aluminum and copper that failed to meet the specifications of around 200 customers, including Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co., as well as manufacturers of Japan’s bullet trains and parts suppliers to Boeing Co. Documents had been doctored to make it appear specifications were met. BY ROBERT WALL ‘We are really sorry that we created this situation.’ Hiroya Kawasaki TORU HANAI/REUTERS NYPD Probes Weinstein Incident Since then, Kobe Steel has reported problems with other products including steel powder. So far, no problems with any finished products using the Kobe Steel materials have been reported, and no products have been recalled. The government is sensitive to any blow to the country’s reputation for high-quality manufacturing, which can help Japanese companies weather competition from lower-cost rivals in China, South Korea and elsewhere in Asia. “Korean companies are producing good cars, and even Chi- nese companies are as well,” said Akie Iriyama, an associate professor at Waseda University in Tokyo. “The same thing is happening in the steel business. We are losing some competitiveness.” Japanese producers may still have a quality advantage, but the increased competition means they can’t charge much more for their goods, said Mr. Iriyama, who studies Japanese business practices. Kobe Steel has lost money for two years as rising prices for raw materials ate into profit and it took a hit on parts of its business in China. So far, the only confirmed shipments of problematic metal have been within Japan. Kobe Steel’s Mr. Kawasaki said Thursday it is looking at whether overseas units doctored paperwork. Kobe Steel produces aluminum auto parts in Bowling Green, Ky., near a Toyota plant that makes the Camry sedan— the latest model of which has a hood made of aluminum. Toyota has said it believes only Japanese factories received the substandard Kobe Steel aluminum, which ended up in some hoods and rear doors. Airbus SE said it has taken full control of an Asian planerepair company, as it and rival Boeing Co. both push to win a greater share of the lucrative market for servicing airliners. Airbus on Thursday said that it acquired all of Malaysia’s Sepang Aircraft Engineering business, following on its purchase of a 40% stake in 2011. The value of the deal wasn’t disclosed. Boeing, the world’s largest airplane maker by deliveries, and No. 2 Airbus traditionally have left it to others to service aircraft during the 20 or more years they are typically in operation. But with airlines demanding steeper discounts on new planes and investors seeking greater profits, Boeing and Airbus are now targeting the aftermarket business. Airbus’s purchase of the repair facility in Kuala Lumpur is aimed at strengthening the European company’s plane-repair capability in Asia and helping it innovate in the way it services planes, Laurent Martinez, head of services at Airbus, said. Immunotherapy Treatments for Cancer Gain Momentum BY THOMAS M. BURTON The science of using immunotherapy to treat cancer is advancing rapidly, marked by the National Cancer Institute’s recent disclosure that a metastatic breast-cancer patient is now cancer-free, regulators’ expected approval of a major lymphoma treatment this fall, and the unveiling Thursday of a partnership between government researchers and drugmakers. Immunotherapy, or immunecell therapy, describes a range of treatments that harness a patient’s own immune system to target cancer. The approach doesn’t work in all patients, but its success against some hard-to-treat cancers makes it the most closely watched area in cancer pharmaceuticals. Underscoring the rapid advances, the National Institutes of Health and the NCI Thursday announced a $215 million medical collaboration with 11 medical companies, including AbbVie, Novartis AG and Johnson & Johnson. The NIH will contribute $160 million over five years to the research, and the companies will contribute $55 million. Meanwhile a lymphoma drug from Kite Pharma Inc., expected to be approved soon, would be the second immunotherapy drug of its type to get a green light from the Food and Drug Administration and has promise for thousands of patients with a type of non-Hodgkin lymphoma that resisted other treatments. Kite agreed in August to be acquired by drug giant Gilead Sciences Inc. for about $11 billion, based on the hopes for the therapy. Called axi-cel, the Kite medicine stems from a yearslong scientific collaboration with the NCI, underscoring the government agency’s central role in developing immunotherapies. NCI was the first to develop an experimental immunotherapy called CAR T, for “chimeric antigen receptor,” a kind of genetically engineered immune cell. The NCI, a division of the National Institutes of Health, transferred the technology to develop the drug to Kite, and the company has paid up to $3 million a year to support the research. The FDA recently approved another gene-based immunotherapy, Novartis’s Kymriah, for a form of leukemia. In another significant development, the cancer institute’s prominent cancer researcher and chief of surgery, Steven A. Rosenberg, detailed for the first time an immunotherapy success against metastatic breast cancer, in a talk earlier this month. In the lecture at a Boston meeting of the American Association of Cancer Research, Dr. Rosenberg reported on the first patient with metastatic breast cancer who is diseasefree nearly two years after her first immunotherapy treatment. In the therapy, a person’s own cells are multiplied billions of times and reinfused into the patient. Dr. Rosenberg’s lab has already reported successes in treatment of melanoma, lymphoma, colorectal Steven A. Rosenberg, who heads the immunotherapy lab at the National Cancer Institute cancer and bile-duct cancer. The patient is Judy Perkins, a 51-year-old structural engineer from Port St. Lucie, Fla. She was diagnosed with metastatic cancer—cancer that spread beyond the original location—in 2013. Then she un- derwent multiple regimens of chemotherapy and other standard treatment, to little avail. But she learned of the NCI research, and in August 2015, doctors in Bethesda, Md., harvested her immune cells. In December 2015, she got an infusion of her own, intensified immune cells. Driving home, she said she already could feel a tumor that had shrunk. “I thought this thing could be working,” she said. By May 2016, her scans at the NCI came back clean—no detectable cancer. They have stayed clean, including during a visit to the NCI in Bethesda just last week. Ms. Perkins is only one case. But the fact that she had metastatic breast cancer that is no longer detectable makes it very consequential. It follows reports from the Rosenberg lab about other internal-organ cancers, specifically colorectal and bile duct. “We now see this treatment as a blueprint. We’ve taken the first steps in treatment of these common solid-tumor cancers that don’t respond to anything,” Dr. Rosenberg said. But he cautioned, “Each patient is a puzzle.” Dr. Rosenberg’s interest in immunotherapy was piqued three decades ago, when he was struck by a chance encounter with a stomach-cancer patient who improbably recovered despite no treatment. It became a lifelong quest to discover how that patient had, in effect, cured himself. Scores of recoveries at the cancer institute of melanoma and lymphoma patients followed after immunotherapy treatment from his lab. Now, his lab is exploring the promise of treating and accomplishing tumor regressions in far more common solid-tumor cancers of internal organs, including the breast, colon and bile-duct. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. B4 | Friday, October 13, 2017 TECHNOLOGY WSJ.com/Tech CEOs Make Protecting Data a Top Goal Cyberattack threats change work habits of corporate bosses; cautious email replies BY VANESSA FUHRMANS Cyberthreats have zoomed to the top of CEOs’ worry lists for fear a data breach could cost them their jobs and take down their businesses. The fallout of attacks on companies from Target Corp. to Yahoo Inc. and, most recently, Equifax Inc. has thrust more corporate bosses to the front line of cybersecurity and changed the way they work. No longer leaving data protection just to informationtechnology departments, chief executives are now often the ones reassuring nervous boards, stressing the importance of data security to employees, and leading drills to gird for a potential hack. And as especially ripe phishing targets, CEOs—more than many other staffers—are being forced to rein in once-free- wheeling email habits. The number of U.S. data breaches jumped to a record 791 in the first six months of 2017, according to the nonprofit Identity Theft Resource Center and data-security firm CyberScout. That is a 29% jump from the year-earlier period. At the same time, U.S. chief executives surveyed by KPMG LLP this year on average ranked cybersecurity as their top investment focus over the next three years, up from its second-place spot in last year’s survey. “This is something a lot of us just didn’t have to worry about five years ago—someone else was handling that,” says Michael Riggs, chief executive of car-hauling company Jack Cooper Holdings Corp. But now, “any CEO who’s not putting this at the top of their priority list is crazy.” That is partly because their jobs are often the first on the line. Breaches at Target, Sony Pictures Entertainment and Equifax all spurred the departures of their bosses. Yahoo’s then-CEO Marissa Mayer lost Jack Cooper, which has over 3,000 employees and transports cars for General Motors Co., Ford Motor Co. and other auto makers, doesn’t just have to guard its own data. It is under pressure not to become the inadvertent portal through which hackers could gain access to its carmaking customers, whose systems interact with theirs. “They are a lot bigger pot of gold than we are, and we have to give assurances that we’re not just OK, but that we’re making this a top priority as far as the CEO and board are concerned,” Mr. Riggs says. Earlier this year, he rearranged the company’s organizational structure so that the chief information officer reports directly to Mr. Riggs. On the executive team’s conference call every Monday, the CIO updates Mr. Riggs and the rest of Jack Cooper’s top executives on cybersecurity matters, from software problems with suppliers to other companies that have suffered attacks. On occasion, the team Hack Attacks Reported U.S. data breaches of educational institutions, military and government agencies, medical facilities, ﬁnancial ﬁrms and other businesses. 1,200 1,091 1,000 800 600 400 200 0 2005 ’10 ’15 Sources: Identity Theft Resource Center and CyberScout THE WALL STREET JOURNAL. her 2016 bonus after an attack that occurred on her watch. “The more it hits everyday citizens, the more likely it will cost a CEO their job,” says Brett Stephens, chief executive of board and executive search firm RSR Partners. has used the weekly updates to act immediately on a cybersecurity recommendation, such as a software upgrade. Among the biggest cyberrisks to companies are CEOs themselves. The sheer amount of publicly available information about them makes it easy for so-called phishers to craft authentic-appearing email urging them to click on malicious links or to initiate money transfers, experts say. For Michael Hansen, CEO of Michael Hansen, CEO of Cengage Learning, takes part in drills that simulate cyberattacks. educational-content company Cengage Learning, that risk means he often can’t immediately respond to email from students and other customers. He says he makes a point of answering each email, which number as many as five a day. Chinese Takeout Most Chinese shoppers still go to traditional markets to buy fresh vegetables and meat... ...but analysts and e-commerce companies say fresh food is becoming a huge online market. Online fresh-food sales ALIBABA/IMAGINECHINA/ASSOCIATED PRESS Retail food sales by venue, 2016 A vending machine sold hairy crabs in Shanghai last month. Alibaba and JD.com say their shipments of the delicacy could help customers become comfortable with buying fresh food online. Online 3% 150 billion yuan Supermarkets 22% 100 50 Others 2% 0 Traditional markets 73% 2012 ’13 Note: 100 billion yuan = $15.2 billion *Estimates Source: Analysys International ’14 ’15 ’16* ’17* THE WALL STREET JOURNAL. Online Rivals View Crab as Key to Sales Feast called for the bristles on their claws and legs—is that Chinese prefer to cook them live, believing they taste better. Unlike North American lobsters, which both JD.com and Alibaba sell, crabs resonate with Chinese. They are native to the rivers and estuaries of eastern China, and there is a craze to eat them in autumn, when the females are plump with roe. M ore important for the companies, getting a live crab to a consumer is crucial to staying competitive and capturing the leading edge in delivering fresh food. “The e-commerce companies have hit a bottleneck,” says Zhao Yue, an analyst at research firm Analysys International in Beijing. “Fresh food is the last big category they have yet to conquer. It also happens to be a highfrequency purchase, which is exactly what the companies are looking for.” Online shopping is booming in China, but the growth in sales is slowing, from 67% in 2012 to 56% in 2014 and 26% in 2016, according to the Commerce Ministry. Alibaba and JD.com, which al- ready have nearly 80% of the online retail market, are hunting for new prospects. Fresh food is seen as the final frontier. Goldman Sachs expects online consumer purchases of groceries, including fresh food, to grow 34% between 2016 and 2020 in China, much higher than apparel, at 20%, or electronics and ap- 26% The growth in sales from online transactions in China last year pliances, at 13%. By 2020, it estimates, consumer goods and groceries will be a $2 trillion market, with fresh food accounting for 40%. Getting Chinese to buy fresh food online is a challenge. Just like in the U.S., Chinese prefer to shop for fresh food at markets. Only 3% of fresh food was purchased online in China in 2016, according to Analysys. Alibaba is experimenting by allowing customers to shop at physical grocery stores and then order by smartphone for home delivery. The fresh-food business is tough, with low margins. Unlike with books or shoes, quality control is difficult with vegetables, meat and fish, and they spoil easily. Ecommerce companies have to build climate-controlled logistics chains, increase the frequency of deliveries and keep inventories low. Logistics alone can eat as much as half the total cost for the online fresh-food business, says Ms. Zhao of Analysys. Alibaba and JD.com tout their logistics capabilities, but both declined to say whether their fresh-food businesses—Tmall Fresh and JD Fresh—are profitable. Analysts like Ms. Zhao say they aren’t. A JD.com spokesman says the fresh-food business generates sales in other product areas. For their hairy-crab war, Tmall and JD.com worked for months to secure sourcing deals with crab farmers, set up new logistics chains and gear up marketing. The most challenging part is keeping the crabs alive. About 4% of 15,000 comments on a $30 package of eight crabs on JD.com were left by unhappy customers. Some complained that their crabs were dead. By comparison, out of some 75,000 comments on a top-selling rice cooker on JD.com, about 700 were labeled as “negative,” or less than 1%. S imilar complaints appear on Tmall, though it doesn’t categorize customer comments in terms of favorable or unfavorable. Most people who have purchased fresh food online this year are members of China’s middle class, with monthly incomes of over 8,000 yuan ($1,214), according to iResearch in Beijing. The target now is consumers beyond that group. If they are comfortable buying a perishable item like crab online, the thinking goes, they will shop for everything. “Fresh food is a very strategic area of the business. We are building trust and the consumer habit of buying everything from JD,” says Zhujun Chu, a JD.com executive in charge of fresh food. Follow Li Yuan on Twitter @LiYuan6 or write to email@example.com. Amazon.com Inc. said it plans to add 120,000 seasonal employees to help fill holiday orders at its warehouses, nearly doubling that segment of its workforce and topping hiring plans at other major retailers. Still, it is the same number of temporary workers the online retailer brought on last year, reflecting hiring already done this year toward meeting its goal of adding 100,000 fulltime and 30,000 part-time workers through mid-2018. Amazon plans to retain some of the workers, which would help it keep building toward that number. Supply-chain experts say hiring this year will be more competitive due to near record-low unemployment, requiring retailers and logistics companies to offer higher wages and other perks. Amazon got an early start. In August—right before seasonal hiring traditionally starts—the company held a job fair online and in a dozen cities to hire 50,000 new permanent employees in a day. It received about 20,000 applications that day, and has since filled all the jobs, a spokeswoman said. Amazon said it employs more than 125,000 full-time workers at over 75 fulfillment warehouses across the U.S.—a number likely to be updated when the company reports third-quarter earnings in the coming weeks. Already, Amazon has warned it will be a quarter with heavy spending, in part due to opening new warehouses. United Parcel Service Inc. has said it would hire 95,000 workers, also on par with last year, aiming to increase operational efficiency with the same number of workers even as the number of packages it ships grows. Wal-Mart Stores Inc. plans to give its in-store employees more hours, but also add 5,000 extra seasonal workers at its e-commerce business. Macy’s Inc. intends to increase seasonal hires at its warehouses by 20% to 18,000, although overall seasonal hiring at the retailer is down slightly. MARK LENNIHAN/ASSOCIATED PRESS Amazon Has Plans to Hire 120,000 Seasonal Workers BY LAURA STEVENS Facebook To Detail Russia’s Ad Targets BY DEEPA SEETHARAMAN AND JULIE BYKOWICZ CHINA CIRCUIT | By Li Yuan Hairy crabs, a freshwater delicacy for the fall season, are the new foot soldiers in China’s online fresh-food delivery war. Ecommerce rivals Alibaba Group Holding and JD.com are competing to deliver the crustaceans fast and alive to customers. To do that, JD.com works with Air China Cargo for prompt handling of hairy crabs at airports. Alibaba’s Tmall assembled a fleet of 40 refrigerated trucks to pick up freshly harvested crabs and deliver them to 70 flights every day. Both companies say they deliver hairy crabs to consumers in some cities within six hours of ordering for those in hundreds of other cities. Both promise to reimburse customers if the crabs arrive dead. JD.com says it sold over 16 million hairy crabs and gift coupons in September, almost doubling from a year earlier. Tmall says it sold 140,000 in one minute at a presale event last month. A reason for all the attention on hairy crabs—so- Now, though, he says he first has to scrutinize the email address and message or send them to the company’s IT department for verification, which usually takes a couple of hours. “I would love to just hit the ‘reply’ button,” he says. “But at the same time I have to be conscious that not everyone could be legitimate.” A few times a year, Mr. Hansen and other senior managers take part in drills in which they walk through a simulated phishing or other cyberattack and determine when to inform customers and investors of the breach. For a business leader, “going through the process helps you appreciate the level of pain this will cause in real life,” says John Ackerly, a former tech policy director in George W. Bush’s White House who is CEO of Washingtonbased encryption and dataprotection firm Virtru Corp. Plus, “it gives you insight into the quality of your team and where the weak links are.” —Angus Loten contributed to this article. Amazon boosts hiring at its warehouses to handle holiday orders. Facebook Inc. will publicly disclose the types of people targeted by Russian-backed ads during and after the 2016 presidential election, operating chief Sheryl Sandberg said. In an interview Thursday with Axios, Ms. Sandberg acknowledged Facebook’s platform was manipulated in a way it shouldn’t have been during the election. She said the company was cooperating with Congress and planned to share with investigators more information about Russialinked activity on the social network. Facebook said last month that it had identified 470 “‘inauthentic” Russian-backed accounts tied to one pro-Kremlin company that was responsible for $100,000 in ad spending on the company’s platform. Those ads reached an estimated 10 million people. The targeting information will reveal what kinds of American voters Russians aimed to reach. Facebook enables ads to be targeted by race, ethnicity, location and other characteristics. Those who have seen the Facebook ads describe them as being intended to sow chaos. But Ms. Sandberg stressed that had the ads been purchased by legitimate accounts, Facebook would have allowed them to run. “We don’t check the information people put on Facebook before they run it and I don’t think anybody should want us to do that,” Ms. Sandberg said. Facebook is sharing information about its findings with other tech companies, she said. The company also is investing in machine learning to detect the kind of fake accounts that spread fake news during the election. Congress is investigating foreign interference in the 2016 election, including efforts to back Donald Trump and oppose his Democratic rival, Hillary Clinton. Ms. Sandberg spent backto-back days on Capitol Hill this week addressing some of Facebook’s challenges. On Wednesday, she met with leaders of the House Intelligence Committee. On Thursday, she and a team of several Facebook executives sat down with members of the Congressional Black Caucus, a group of 49 black lawmakers. In the Thursday meeting, Ms. Sandberg said Facebook was taking steps to increase diversity, including committing to add an African-American member to its board, according to five lawmakers who emerged from the briefing. She also promised that Facebook would do more to combat foreign influence on the platform, according to lawmakers in the meeting. —Byron Tau contributed to this article. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | B5 Annual Meeting November 13–14, 2017 Washington, D.C. In a time of political tumult, the new administration in Washington is already recasting trade relations, health-care policy, tax rates, regulation and America’s role in the world. Join The Wall Street Journal as we explore these topics with key officials, industry leaders and global CEOs. Speakers include: Anne Case Kevin Hassett Lawrence H. Summers Professor, Economics and Public Affairs Chairman, Council of Economic President Emeritus, Harvard University; Emeritus, Princeton University Advisers Secretary, U.S. Department of the Treasury (1999-2001) Angus Deaton Jerry Kaplan Nobel Laureate in Economics; Adjunct Professor, Stanford University; Rex W. Tillerson Senior Scholar, Princeton University Author, “Humans Need Not Apply: Secretary, U.S. Department A Guide to Wealth and Work in the Age of State Betsy DeVos of Artificial Intelligence” Secretary, U.S. Department of Education Jay Walker Amy Klobuchar Founder and CEO, Upside; U.S. Senator (D., Minn.) Founder, Priceline.com; John Ferriola Founder, Library of the History Chairman, CEO and President, Chris Liddell Nucor Corporation Assistant to the President; Martin Ford of Human Imagination Director, Strategic Initiatives, Mark Warner The White House U.S. Senator (D., Va.) Author, "Rise of the Robots: Technology and the Threat Wilbur L. Ross, Jr. of a Jobless Future" Secretary, U.S. Department of Commerce CEO Council membership is by invitation. Learn more at CEOCouncil.wsj.com Proudly supported by: © 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ5125 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B6 | Friday, October 13, 2017 THE WALL STREET JOURNAL. * **** BUSINESS NEWS Mining Mogul Makes Mark Quietly Samsung Forecasts India’s Anil Agarwal takes 20% stake in Anglo American, but intent remains unclear Record Earnings BY TIMOTHY W. MARTIN LONDON—Anil Agarwal began his career as a metals dealer in India nearly 50 years ago. Today, he is a billionaire making one of the biggest bets on the global mining industry’s recovery. The chairman of India’s Vedanta Resources PLC has used a family trust to invest almost $4.5 billion in Anglo American PLC this year, taking control of about 20% of the U.K. mining giant. Along with his controlling interest of about $2.1 billion in his own company, the stake vaults Mr. Agarwal into a rarefied group of mining investors. Among individuals, Mr. Agarwal’s bet rivals that of Glencore PLC Chief Executive Ivan Glasenberg, whose shares in his own company are worth about $5.9 billion—one of the largest personal stakes in a mining company. Big institu- SEOUL—Samsung Electronics Co. is forecasting third-quarter profit will be the company’s highest ever, spurred on by roaring demand for its components. Samsung on Friday said it expects operating profit of 14.5 trillion South Korean won ($12.8 billion) for the three months ended Sept. 30, a 179% increase from 5.2 trillion won for the same period a year earlier. The South Korean technology giant estimates revenue will be 62 trillion won from July to September, up from the prior year’s third quarter of 47.82 trillion won. Separately, Samsung Electronics’ chief executive, Kwon Oh-hyun, who has overseen the firm’s lucrative components business, will resign and relinquish his vice chairman post by next March, the company said Friday. One of three Samsung Electronics CEOs who oversees the components division, he also won’t seek reelection in March for his board position. Samsung has also been challenged by the absence of its de facto leader, Lee Jaeyong, who was convicted in August over bribing South Korea’s former president. The appeal trial for Mr. Lee, who has denied wrongdoing, started this week. Mr. Kwon said in a statement the company now “needs a new leader more than ever and it is time for me to move to the next chapter of my life.” After informing Mr. Lee and others, Mr. Kwon, in the statement, said he would get their feedback and then recommend a successor. The world’s largest smartphone maker will report final results later this month. It was just a year ago that Samsung slashed third-quarter earnings guidance by onethird after yanking fire-prone Galaxy Note 7 devices from the shelves. The global recall ultimately cost the company around $6.5 billion, tarnished the firm’s chic brand and shook consumer trust. Samsung’s run of profits reflects its dominance as an electronics components supplier, where it has invested tens of billions of dollars. The chairman of Vedanta Resources, who spends time in London, tends to keep a low profile. tional investors like BlackRock Inc. also have significant stakes in a range of companies, including BHP Billiton PLC and Rio Tinto PLC. “As an individual, this is a huge position in mining,” said Paul Gait, a mining analyst at Sanford C. Bernstein. Mr. WALDO SWIEGERS/BLOOMBERG NEWS BY SCOTT PATTERSON A Vedanta copper mine in Zambia. Mr. Agarwal’s interest in the Indian company, which he controls, is valued at about $2.1 billion. Agarwal and a spokesman for Anglo American declined to comment. Mr. Agarwal’s roughly $6.6 billion position in two large mining companies comes amid a broad turnaround in the sector, fueled by demand in China, which consumes about half of most of the world’s major commodities. Prices for copper, iron ore, coal and other materials have clocked double-digit increases, luring back many investors who fled mining stocks in 2015. BlackRock’s world mining trust has more than doubled in size since January 2016. Mr. Agarwal, 65 years old, got his start in commodities in the late 1960s, dropping out of school to work as a metals investor in Mumbai, then known as Bombay. Seven years later, he founded copper maker pledging to give 75% of his family’s wealth to charity. But even there, Mr. Agarwal tends to keep a low profile. He spends much of his time in London. That relative anonymity has left investors and analysts wondering what Mr. Agarwal plans to do with his stake in Anglo American, a mining icon founded by diamond and gold magnate Ernest Oppenheimer a century ago. “At this point, I don’t think anybody knows,” said RBC capital analyst Tyler Broda. Some say the billionaire could simply be looking for more exposure to the commodity industry’s recovery. Anglo American has returned to profit after years of losses. On Oct. 5, the company’s share price set a threeyear high, closing up 17% since March, when Mr. Agarwal announced his first series of Anglo American investments. On Thursday, its stock closed at £14.44 in London. Mr. Agarwal has said in the past he wasn’t interested in taking over Anglo American or forcing a merger with Vedanta. for one of its German and Austrian units. The deal, which would see Lufthansa take over 81 planes, is subject to approval from antitrust authorities. Lufthansa and British airline easyJet were the remaining bidders after Air Berlin administrators winnowed prospective buyers on Sept. 21. Air Berlin said talks with easyJet continue over the sale of some of its assets. The Air Berlin sale comes days after British budget carrier Monarch Airlines ceased flying after failing to find a buyer. In Italy, administrators are seeking bids for all or parts of flag carrier Alitalia SpA, which was declared bankrupt in May. Bids are due Oct. 16 for a process that is expected to run into 2018. In the U.S., a wave of consolidation among carriers has driven the bulk of traffic into the hands of a few airlines. That has helped carriers such as American Airlines Group Inc., Delta Air Lines Inc., United Continental Holdings Inc. and Southwest Airlines Co. deliver strong profits. —Robert Wall Top of the Mountain Some of the biggest investors in public mining companies: Individual Mining company Amount invested Luksic family Antofagasta Anil Agarwal Anglo American, Vedanta Ivan Glasenberg Glencore Andrew Forrest Fortescue Metals Group Carl Icahn Freeport-McMoRan $8.3B $6.6 $5.9 Source: Agarwal public disclosures, FactSet (all others) Sterlite Industries. In 2003, Vedanta Resources, majorityowner of Sterlite, became the first Indian company to list on the London Stock Exchange. But until now, Mr. Agarwal hadn’t been seen as a major player outside India, where he is perhaps best known for $4.1 $1.3 THE WALL STREET JOURNAL. BUSINESS WATCH SOUTHWEST Carrier Plans Flights to Hawaii Southwest Airlines Co. said it wants to launch service to Hawaii next year, in the latest service expansion for the discount carrier. The move by Southwest is another example of how the budget airlines are continuing to challenge full-service carriers. Discount airlines have also competed against major carriers for their longer routes, including those between North America and Europe. At the beginning of October, Southwest launched scheduled service using its newly acquired Boeing 737 Max 8 aircraft, allowing for increased flight range. Discount carriers, like Southwest, have dominant positions in many of the world’s most important markets. These budgetfriendly airlines have driven down prices across the industry. Service details of the new flights will be announced later. The Dallas-based airline serves more than 115 million customers a year. —Austen Hufford New Highs and Lows | WSJ.com/newhighs Stock AIR BERLIN Consolidation Speeds Up in Europe Airline consolidation that has helped U.S. carriers boost profits is gaining pace in Europe’s fractured aviation sector where Air Berlin PLC Thursday said it was selling part of its assets to larger rival Deutsche Lufthansa AG. Air Berlin, which filed for bankruptcy in August, said it would receive €210 million ($248.5 million) from Lufthansa, Germany’s No. 1 airline by traffic, 52-Wk % Sym Hi/Lo Chg Stock 0.91 ParkerDrilling PKD The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE PartyCity PRTY 12.20 MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in PenneyJC 3.31 JCP the latest session. % CHG-Daily percentage change from the previous trading session. 8.06 PIMCO HiIncm PHK 1.63 RiteAid RAD 17.19 SallyBeauty SBH Thursday, October 12, 2017 13.02 52-Wk % 52-Wk % 52-Wk % Satrn JCPen HJV Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg Stock Sym Hi/Lo Chg SteelPtrsPfdA SPLPpA 20.60 TevaPharm TEVA 15.03 46.95 0.2 RELX EmployersHldgs EIG RELX 22.89 0.6 Vipshop 7.87 VIPS 81.82 1.8 Raytheon Entergy ETR RTN 189.39 0.9 WideOpenWest WOW 14.45 55.15 -0.6 RedHat Envestnet ENV RHT 121.22 1.3 8.88 0.5 AberdeenJapanEqu JEQ 31.95 -1.7 ReinsuranceGrp RGA 143.10 0.4 EnvivaPartners EVA Accenture ACN 139.65 1.7 Exelon 38.95 1.2 RestaurantBrands QSR EXC 66.54 0.3 15.48 0.1 FairIsaac AdamsDivEquityFd ADX 67.08 FICO 147.87 0.1 RivernorthOppsRt RIVrw 0.36 7.5 ALPS EqSecWgh EQL 67.60 1.4 FedAgriMtg C AgilentTechs A 77.54 1.0 Rockwell AGM ROK 185.29 0.4 ALPSSectorDivDogs SDOG 44.53 AlabamaPwrPfdA ALPpQ 26.41 -0.2 FederatedInvest FII 31.33 0.4 Rollins 47.93 0.2 ARKIndlInnovation ARKQ 32.84 ROL 89.75 1.6 Ferro Allegion ALLE 23.31 1.2 RoyalBkCanada RY FOE 79.36 -0.4 ARKWebx.0ETF ARKW 41.84 AlpnGlblPrProp AWP 6.82 1.0 FibriaCelulose FBR 22.16 16.10 0.1 RoyceGlbValueTr RGT 10.63 0.2 AdvShNewTech FNG 30.03 0.2 FidelityNtlInfo FIS AmEqtyLf AEL 94.99 ... SAP SAP 113.03 ... BarcETNFIEnhEur50 FEEU 131.68 AmHomes4RentPfdG AMHpG 25.90 ... Forestar 17.65 2.0 S&P Global FOR SPGI 161.66 1.3 BarclaysETN FI Enh FLEU 157.85 AmerWaterWorks AWK 85.17 0.8 Fortive 73.01 0.7 SJW Group FTV 61.77 0.4 BarcETN+FIEnhGlHY FIGY 165.92 SJW Ameriprise AMP 153.28 0.5 GabelliDividend GDV 32.08 22.75 ... SafeBulkersPfdD SBpD 24.00 ... 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PublicServiceEnt PEG 19.90 -2.9 GuggS&P500EWTech RYT 138.58 EtnVncTxAdvDiv EVT NSH 49.03 1.3 NuSTAR GP 11.83 -0.3 PzenaInvtMgmt PZN EtnVncTxMgdEqu ETY 11.88 2.0 OFGBancorpPfB OFGpB 22.03 -1.4 GuggS&P500PureGr RPG 101.86 58.60 0.6 RELX 8.32 -3.5 GuggInsider 60.07 ElPasoElectric EE OFG RENX 21.93 0.5 OFGBancorp NFO NYSE highs - 222 -9.5 -4.7 -3.7 -1.6 -7.3 -2.1 -0.1 1.7 -3.9 -3.1 -2.6 NYSE Arca highs - 309 NYSE lows - 32 ... ... 0.2 0.6 ... 0.1 0.1 ... ... -0.1 -0.2 0.1 -0.2 ... 0.1 0.3 -0.2 1.7 0.4 0.1 -1.0 ... -0.3 -1.2 -1.0 -0.1 -0.1 -1.0 -0.7 0.1 0.1 0.3 0.3 0.3 0.1 -0.2 -0.1 ... 0.5 ... 0.2 -0.1 -0.1 ... 0.2 -0.1 0.4 ... 0.4 0.1 0.2 0.3 0.2 0.4 0.6 -0.1 ... 0.1 ... 0.4 -0.4 0.1 0.5 0.9 ... 1.4 0.1 ... -0.1 ... ... -0.6 -0.3 ... 0.6 0.2 0.1 0.3 52-Wk % Sym Hi/Lo Chg Stock GuggMC Core CZA GuggS&P500Top50 XLG GuggS&PGlblWtr CGW GuggS&PSpinOff CSD HartfordMultiDvxUS RODM HullTacticalUS HTUS IQ AustraliaSC KROO IQ50%HdgFTSEIntl HFXI IQGlbAgribusSC CROP IQ HedMultStra QAI IndSelSectorSPDR XLI iShAggrAllocation AOA iShConsAllocat AOK iShCoreDivGrowth DGRO iShGrwthAllocation AOR iShCoreMSCIEmgMk IEMG iShCoreMSCIEurope IEUR iShCoreMSCIPacific IPAC iShCoreS&P500ETF IVV iShCurHdgMSCIEAFE HSCZ iShCurrHdMSCIJapan HEWJ iShUSBasicMaterial IYM iShUS Finls IYF iShU.S.Technology IYW iShEdgeMSCIIntlMom IMTM iShEdgeMSCIIntQual IQLT iShEdgeMSCIIntSize ISZE iShEdgeMSCIIntVal IVLU iShEdgeMSCIMnVlEur EUMV iShEdgeMSCIMinJapn JPMV iShEdgeMSCIMultif ACWF iShEdgeMSCIMultInt INTF iShEdgeMSCIMlIntSC ISCF iShEdgeMSCIMultUSA LRGF iShEdgeMSCIUSASize SIZE iShEuropeETF IEV iShGlobal100 IOO iShJPX-Nikkei400 JPXN iShACWILowCarbon CRBN iShMSCIAustriaCap EWO iShMSCIBelgiumCap EWK iShMSCICanadaETF EWC iShMSCI EAFE EFA iShMSCIEmgMarkets EEM iShMSCIFranceETF EWQ iShMSCIGermanyETF EWG iShMSCIJapanETF EWJ iShMSCIJapanSC SCJ iShMSCIKLD400Soc DSI iShMSCIKokusaiETF TOK iShMSCINetherlands EWN iShMSCISouthKorea EWY iShMSCIUSAESGSelct SUSA iShMSCIUK EWU iShMSCIWorldETF URTH iShMorningstarLC JKD iShMornLCGrowth JKE iShMornMCGrowth JKH iShRussell1000Gwth IWF iShRussellTop200Gr IWY iShRussellTop200 IWL iShS&PMC400Growth IJK iShS&P500Growth IVW iShGlobalTechETF IXN iShGloblFinancials IXG iShGloblIndustrial EXI iShNorthAmerTech IGM iShRussellMCGrowth IWP HancockDevIntl JHMD HancockMultFinls JHMF HancockIndustrials JHMI HancockTech JHMT JPM DivRetEM JPEM JPMDivReturnEurope JPEU JPM DivRetGlEq JPGE JPM DivRetIntl JPIH JPM DivRetIntlEq JPIN JPM DivRetUS Eq JPUS KnowldgLdrDevWrld KLDW MatlsSelSectorSPDR XLB NationRiskBaseIntl RBIN NatixisSeeyondIntl MVIN OShFTSEAsiaPacQlty OASI OShFTSERussIntl ONTL OShFTSEUSQuality OUSA OppGlbESGRevenue ESGF PIMCO DynMultIn MFDX PIMCO DynMultUS MFUS PwrShAerospace PPA PwrShCEF Incm PCEF PwrShCleantch PZD PwrShDBBaseMtls DBB 64.14 180.74 35.11 51.69 28.98 27.88 18.49 21.24 35.51 30.08 72.27 54.13 34.62 32.97 45.12 55.84 50.22 57.51 256.78 30.14 31.39 98.15 114.26 153.95 30.53 29.35 27.76 25.63 25.71 65.40 29.73 28.47 31.51 30.47 80.43 47.34 89.90 61.51 114.18 23.70 21.68 29.25 69.33 46.37 31.19 32.90 56.79 75.14 94.51 63.26 31.84 72.37 106.38 35.30 85.31 152.80 149.14 193.11 127.68 69.23 58.58 206.23 146.20 146.68 67.83 90.10 159.92 115.32 29.87 35.03 33.46 39.35 57.90 61.40 60.62 29.85 58.88 68.18 32.38 58.15 25.40 45.91 29.73 27.72 30.73 30.29 26.07 26.13 52.81 24.18 42.30 18.80 0.3 -0.5 0.1 ... ... 0.1 1.1 ... 0.4 0.1 0.5 -0.1 ... ... ... ... -0.1 0.2 -0.1 0.9 -0.2 0.3 -0.4 ... -0.1 0.2 0.8 ... 0.1 ... 0.5 ... 0.3 ... 0.2 -0.2 -0.1 -0.1 -0.1 -0.7 ... -0.3 -0.1 ... -0.2 -0.1 -0.1 ... 0.1 0.2 -0.1 0.6 0.2 0.2 -0.1 ... ... 0.1 ... ... -0.2 0.1 ... -0.1 -0.6 0.3 0.1 0.2 ... -0.3 0.2 0.4 ... 0.1 0.4 0.1 0.2 0.1 0.2 0.2 ... ... 1.5 0.1 -0.1 -0.1 ... ... 0.5 0.1 0.4 0.8 52-Wk % Sym Hi/Lo Chg Stock PwrShDynMkt PWC PwrShDynSemicon PSI PwrShDynSoftware PSJ PwrShDynLC Grwth PWB PwrShDevMkt xUS PXF PwrShFTSERAFIDevMk PDN PwrShGlbClEngy PBD PwrShS&PIntlDev IDHQ PwrShRussMCGrw PXMG PwrShRussTop200G PXLG PwrShS&P500HiDiv SPHD PwrShS&P500LoVol SPLV PwrShS&P500xRate XRLV PwrShS&P500Qual SPHQ PwrShS&P400LowVol XMLV PwrShS&P600LowVol XSLV PwrShZacksMicro PZI ProShHdgReplic HDG ProShShtVIXST SVXY ProShrUlBscMtls UYM ProShrUltraDow30 DDM ProShUltFTSEEurope UPV ProShrUltraFnl UYG ProShrUltraInd UXI ProShUltMSCIEAFE EFO ProShUltMSCIEM EET ProShrUltraQQQ QLD ProShrUlSemi USD ProShrUlTech ROM ProShUltDow30 UDOW RivFrDynUSFlex RFFC RivFrStratIncm RIGS SPDREUROSTOXXSC SMEZ SPDRGlobalDow DGT SPDRMFSSysGrowth SYG SPDRMSCIACWIIMI ACIM SPDRACWILowCarbon LOWC SPDRMSCICAStrat QCAN SPDRMSCIEAFEStrat QEFA SPDRMSCIEMStrat QEMM SPDRMSCIDEStrat QDEU SPDRMSCIJapanStrat QJPN SPDR NYSE Tech XNTK SPDRRussell1000ETF ONEK SPDRRussell3000ETF THRK SPDRMomentumTilt MMTM SPDR S&P500MidGr MDYG SPDRS&P500Growth SPYG SPDRS&PCapitalMkts KCE SPDRS&PGlbDividend WDIV SPDRS&PTechHardwr XTH SPDRS&PTransport XTN SPDRGenderDivers SHE SPDR US LC Low Vol LGLV SPDR US SC LowVol SMLV SPDRSSgAGlbAll GAL SchwabEM Equity SCHE SchwabFundEmgLrg FNDE SchwabFundIntLrgCo FNDF SchwabFundIntlSmCo FNDC SchwabIntEquity SCHF SchwabIntlSC SCHC Schwab1000Index SCHK SchwabUS Div SCHD SchwabUS LC SCHX SchwabUS LC Grw SCHG SchwabUS LC Val SCHV SPDR DJIA Tr DIA SPDR EurSTOXX FEZ SPDR MSCI exUS CWI SPDR S&P 500 SPY SPDR S&P Div SDY SPDR SP EmAsPac GMF SPDR IntlSC GWX SPDR S&P Semi XSD SPDR S&P exUS GWL SPDR STOXX Eu50 FEU TechSelectSector XLK UBS FIEnhGlbHY FIHD UBS FIEnhLCGrw FBGX VanEckAgribus MOO VanEckCSI300 PEK VanEckGlblSpinoff SPUN VanEckOilRefin CRAK VanEckSemiconduc SMH VangdMatrls VAW VangdInfoTech VGT VangdAWxUSSC VSS VangdFTSEDevMk VEA VangdFTSE Europe VGK VangdFTSE Pac VPL VangdFTSEAWxUS VEU 92.21 51.58 64.43 39.87 44.58 33.38 13.00 23.81 39.49 43.82 41.61 46.60 32.20 29.30 44.81 46.86 19.57 45.11 102.80 68.17 112.73 57.50 117.55 66.95 127.02 88.91 66.77 109.80 79.05 74.44 31.16 25.76 63.21 81.88 76.54 76.37 87.53 60.45 64.35 63.01 64.20 75.75 80.79 119.83 190.67 108.95 150.17 126.33 53.86 68.75 79.41 61.22 70.63 89.76 97.72 37.30 27.72 29.46 30.15 35.26 33.92 36.35 25.08 47.94 60.95 67.11 52.61 228.81 41.56 38.45 255.06 92.73 102.49 35.36 67.92 31.05 35.88 60.50 166.15 203.81 59.46 47.18 23.84 27.50 97.14 131.73 156.37 116.86 44.00 58.89 69.60 53.61 -0.2 0.1 0.7 0.2 -0.2 ... 0.4 0.3 -0.1 0.2 0.2 0.2 0.3 0.2 0.3 ... 0.2 ... 0.7 0.6 -0.3 0.3 -0.8 1.5 0.5 -0.2 -0.4 -0.8 -0.1 -0.4 -0.1 -0.1 -0.5 -0.2 -0.1 -0.2 0.2 0.1 ... 0.3 0.2 0.3 -0.1 ... ... -0.1 0.1 ... 0.2 0.2 0.1 0.4 ... 0.2 -0.1 0.1 ... ... -0.3 -0.1 -0.1 -0.1 -0.2 0.1 -0.1 -0.1 -0.2 -0.1 -0.3 ... -0.1 0.1 ... -0.1 -0.3 -0.1 -0.2 -0.2 -0.1 0.4 0.3 -0.1 0.1 0.3 -0.2 0.2 0.1 ... ... -0.1 0.2 ... 52-Wk % Sym Hi/Lo Chg Stock VangdGrowth VUG VangdHiDiv VYM VangdIndls VIS VangdLC VV VangdMegaCap MGC VangdMegaGrwth MGK VangdMCGrowth VOT VangdS&P500 VOO VangdS&P500 Grw VOOG VangdS&P400Grwth IVOG VangdTotlWrld VT VelocityShVIXShrt XIVH WBITacticalLCS WBIL WBITacticalLCV WBIF WBITacticalLCY WBIG WBITacticalRotatn WBIR WBITacticalSMG WBIA WilshireMicroCap WMCR WisdTrEMxSOE XSOE WisdTrEurQualDiv EUDG WisdTrEuropeSC DFE WisdTrGlbHiDiv DEW WisdTrIntlEquity DWM WisdTrIntlHdgQual IHDG WisdTrIntlLC Div DOL WisdTrIntlMC Div DIM WisdTrIntlSC DLS WisdTrJpnHdgQuDiv JHDG WisdTrJapanHdg DXJ WisdTrJpnHlthCare DXJH WisdTrJapanSC DFJ WisdTrUSDivxFin DTN WisdTrUSLCDivFd DLN WisdTrUSTotalDivFd DTD XtrkrsFTSEDevXus DEEF XtrkrsHarvCSI300 ASHR XtrkrsMSCIAWxUS DBAW XtrkrsMSCIAWxUSHi HDAW XtrkrsMSCIAPxJapan DBAP XtrkrsMSCIEAFE DBEF XtrkrsMSCIEM DBEM XtrkrsMSCIEurope DBEU XtrkrsMSCIJapan DBJP XtrkrsMSCISKorea DBKO XtrkrsRussell1000 DEUS XtrkrsRussell2000 DESC YieldShHiIncome YYY 135.21 82.47 136.42 117.19 87.65 106.75 123.65 234.27 131.13 127.84 71.90 64.92 25.82 27.17 24.12 25.25 24.67 34.61 30.58 26.90 70.12 47.63 55.02 31.21 50.02 67.23 74.93 27.73 55.51 34.70 75.94 85.78 88.18 89.01 29.09 30.28 27.63 26.53 28.61 31.48 24.09 28.72 41.30 31.15 30.66 34.11 19.95 ... -0.1 0.5 -0.2 -0.2 -0.1 0.2 -0.2 ... ... -0.1 0.8 0.2 0.3 0.2 0.4 0.5 -0.2 0.3 0.2 ... -0.3 -0.1 0.2 -0.3 0.2 ... ... -0.3 ... -0.2 0.1 -0.2 -0.1 0.3 0.2 -0.1 -0.1 1.2 0.1 -0.1 ... -0.3 0.5 ... 0.2 0.2 NYSE Arca lows - 31 iPathS&P500VIXST VXX PathS&P500VIXMT VXZ DirexCSI300CnA CHAD DirexDevMktBear3 DPK DirexEM Bear3 EDZ DirexFinlBear3 FAZ DirexS&P500Br1 SPDN DirexSemiBear3 SOXS DirexTechBear3 TECS iPathBloomAgriTR JJA iPathSeasNatGas DCNG PwrShGlbShtHYBd PGHY ProShShtDow30 DOG ProShShMSCI EAFE EFZ ProShShtMSCI EM EUM ProShShortQQQ PSQ ProShUltVIXST UVXY ProShUltShtDow30 SDOW ProShrUSCnsmrGd SZK ProShrUltShFTSEEur EPV ProShrUS MSCI Jpn EWV ProShUltMC400 MZZ ProShrUS MSCI EM EEV ProShUltShtQQQ QID ProShrUSSemi SSG ProShrUSTech REW ProShsVIXMTFut VIXM ProShsVIXSTFut VIXY TeucriumCornFund CORN TeucriumWheatFund WEAT VirtusEnhShrtUS VESH 35.63 19.88 32.42 13.26 10.07 13.70 32.15 18.71 8.34 30.37 17.69 23.19 16.20 26.06 18.56 37.41 16.98 25.01 14.78 31.81 30.00 20.58 8.99 14.87 11.99 18.80 24.08 29.60 17.08 6.32 23.89 -0.7 0.2 -0.5 ... 0.1 1.2 0.2 1.0 0.7 1.4 -2.8 -0.2 0.1 -0.1 ... 0.2 -1.1 0.4 -0.2 -0.4 ... ... 0.1 0.3 0.1 -1.4 ... -0.6 0.9 -0.6 -3.0 NYSE American highs - 5 AmpioPharm CentralSecs Chase IssuerDirect Seaboard 1.34 AMPE 26.45 CET 116.77 CCF 17.00 ISDR SEB 4654.08 26.7 0.4 -1.7 6.9 1.8 NYSE American lows - 8 CamberEnergy CEI 0.14 -1.8 52-Wk % Sym Hi/Lo Chg Stock 0.13 -1.4 ComstockMining LODE EllsworthPfdA ECFpA 24.53 -0.4 Gabelli6%CumPfdA GLUpA 50.43 -0.2 0.85 0.1 Inuvo INUV 3.93 -10.3 Myomo MYO PeabodyEnerPfdA BTUp 55.93 -2.0 0.78 -5.9 RegionalHlthProp RHE Nasdaq highs - 223 ALPS/DorseyMom SWIN 28.90 ASML ASML 174.89 9.20 AdestoTech IOTS 86.65 AdvEnergyInds AEIS AdverumBiotech ADVM 4.05 Agilysys AGYS 12.94 AgiosPharm AGIO 72.50 Alarm.com ALRM 48.82 AlignTech ALGN 194.84 AlnylamPharm ALNY 126.16 Alphabet A GOOGL1011.54 Alphabet C GOOG 994.12 AmerSoftware AMSWA 12.27 AmtechSystems ASYS 13.30 AppliedMaterials AMAT 54.13 ArrowInvDWATact DWAT 11.58 ArtesianRscs A ARTNA 43.10 AtlAcquisitionWt ATACR 0.66 aTyrPharma 6.50 LIFE 7.41 AudioCodes AUDC Autodesk ADSK 119.84 105.80 AveXis AVXS AxcelisTechs ACLS 31.40 BGC Partners BGCP 16.51 BldrsAsia50ADS ADRA 33.57 BSB Bancorp BLMT 31.00 14.62 Bancorp34 BCTF Bio-Techne TECH 124.94 Biogen BIIB 334.32 BldrsEur100 ADRU 22.61 BlueHillsBncp BHBK 20.60 22.20 BoingoWireless WIFI Bruker BRKR 30.93 CBOE Holdings CBOE 110.37 CNB FinPA CCNE 28.57 CabotMicro CCMP 82.81 CadenceDesign CDNS 42.20 CapitalCityBank CCBG 25.35 CapitalSouthwest CSWC 17.76 4.85 CentralEurMedia CETV ChartIndustries GTLS 43.50 CheckPointSftw CHKP 118.24 4.00 ChinaCommCredit CCCR Cintas CTAS 151.75 7.90 Codexis CDXS CodorusValleyBncp CVLY 32.74 Cognex CGNX 119.35 CognizantTech CTSH 74.47 9.35 CommunityBkrs ESXB ConnecticutWater CTWS 63.03 Copart CPRT 36.24 CoStarGroup CSGP 291.94 16.11 CypressSemi CY DavisFinl DFNL 23.10 DavisWorldwide DWLD 24.87 1.64 DigitalTurbine APPS 32.20 Diodes DIOD 91.50 DollarTree DLTR EasterlyAcqnWt EACQW 0.97 ElbitSystems ESLT 151.74 ElectrumSpec ELEC 10.30 EnantaPharma ENTA 49.50 EncoreCapital ECPG 46.50 Entegris ENTG 29.85 ePlus PLUS 97.70 ExlService EXLS 60.60 FidelityNasdComp ONEQ 259.60 51job JOBS 64.77 FirstConnBncp FBNK 28.40 1stSource SRCE 52.77 FT CapStrength FTCS 48.37 60.24 FT DevMkts FDT FT DorseyDyn5 FVC 24.90 26.75 FT DorseyFoc5 FV 38.34 FT EuropeAlpha FEP FTEurozoneAlpha FEUZ 43.40 FT GerAlpha 48.68 FGM 55.75 FT LC CoreAlpha FEX 58.92 FT LC GrwthAlpha FTC 37.43 FT MC GrwthAlpha FNY 63.09 FT MCGrAlpDX FAD FT NasdCleanEdge QCLN 19.76 0.6 0.4 -3.0 1.9 9.7 0.9 2.7 0.9 ... -0.5 ... -0.1 0.4 2.9 0.2 ... 1.2 17.9 -1.6 -0.3 0.4 1.3 6.2 0.4 0.3 0.8 ... 0.4 ... 0.3 -0.7 3.9 0.3 0.8 -0.5 1.0 1.0 -1.1 0.5 3.3 0.6 ... 16.2 0.6 17.2 0.7 1.2 0.7 ... 0.5 0.8 -0.7 -1.4 -0.6 -0.5 ... -0.4 0.2 6.7 0.1 0.6 0.9 1.2 1.0 -0.4 0.6 -0.1 4.5 1.8 0.1 0.2 -0.1 -0.1 -0.1 0.1 0.7 0.1 -0.1 0.2 0.3 0.1 0.7 52-Wk % Sym Hi/Lo Chg Stock FT NasdGlblAuto CARZ FT Nasd100Tech QTEC FT RBAQualIncm QINC FT RiverFrDynAP RFAP FT RiverFrDynDev RFDI FT RiverFrDynEur RFEU FT SwitzAlpha FSZ FT UK Alpha FKU FirstUnited FUNC FlexSTOXXGlbESGImp ESGG FormFactor FORM ForwardAir FWRD FosterLB FSTR GSV Capital GSVC GencorIndustries GENC GlbXConsciousCos KRMA GlbXFinTech FINX GlbXInternetThings SNSR GlbX Robotics&AI BOTZ GlbXSocialMedia SOCL GlbXSuperDivdREIT SRET GluMobile GLUU GreatSouthernBncp GSBC H&E Equipment HEES HalozymeTherap HALO HeritageFin HFWA HorizDAXGermany DAX HowardBancorp HBMD HudsonGlobal HSON IPG Photonics IPGP IQ Chaikin US SC CSML IXYS IXYS Ignyta RXDX Insulet PODD iRhythmTechs IRTC IridiumCommPfdB IRDMB iShAsia50ETF AIA iShCoreMSCITotInt IXUS iShCoreS&PUSGrowth IUSG iShSelectDividend DVY iShExponentialTech XT iShMSCIACWIETF ACWI iShMSCIACWIexUSETF ACWX iShMSCIACxJpn AAXJ iShMSCIEAFESC SCZ iShMSCIEMESGOpt ESGE iShMSCIEmMkAsia EEMA iShMSCIEuropeSmCp IEUS iShMSCIUSAESGOpt ESGU iShPHLXSemicond SOXX Iteris ITI Itron ITRI KaiserAlum KALU LKQ LKQ LamResearch LRCX LeggMasonEMDivCore EDBI Littelfuse LFUS MKS Instrum MKSI MagicSoftware MGIC MarlinBusSvcs MRLN Marriott MAR McGrathRentCorp MGRC MercerIntl MERC MicrochipTech MCHP Microsoft MSFT MiratiTherap MRTX MolecularTemp MTEM MonolithicPower MPWR NMI Holdings NMIH NatlInstruments NATI NatlWesternLife NWLI NewStarFinancial NEWS NorthwestPipe NWPX NovaMeasuring NVMI NVIDIA NVDA 180DegreeCap TURN Orbotech ORBK OtterTail OTTR PacificMercBncp PMBC Paychex PAYX PayPal PYPL PennantParkCap PFLT PeregrinePharmPf PPHMP PwrShDWA DevMkt PIZ PwrShDWA Mom PDP PwrShDWATactical DWTR PwrShDivAch PFM PwrShDynIndls PRN PwrShDynTech PTF PwrShGlbWater PIO PwrShIntlBuyBack IPKW PwrShQQQ 1 QQQ 41.82 70.06 24.79 59.56 63.96 65.41 51.96 39.11 17.30 91.22 17.35 59.51 26.20 6.00 18.40 18.44 21.57 19.29 22.49 32.41 15.63 4.32 58.45 30.24 17.92 30.25 31.26 22.10 1.74 198.41 27.65 24.65 14.70 61.06 52.55 397.26 63.88 62.03 51.44 95.13 35.02 69.89 49.17 74.80 62.71 71.88 72.18 56.82 55.80 165.03 8.17 79.50 106.79 37.19 189.11 32.86 209.85 98.50 9.50 29.95 114.87 46.73 13.63 92.40 77.29 15.50 11.88 114.04 13.60 45.15 365.39 12.51 20.47 31.18 193.09 2.45 43.87 45.60 9.60 64.44 68.98 14.65 23.54 27.49 49.96 27.88 25.05 59.68 52.58 25.17 35.26 148.35 -0.1 ... 0.2 0.2 -0.2 -0.3 0.3 0.6 1.2 0.2 0.9 1.0 -0.2 -0.7 -0.3 0.1 0.7 0.3 0.7 0.4 0.4 9.7 -0.4 1.3 4.0 2.2 ... 0.2 2.4 1.0 0.3 0.4 -1.1 0.9 3.0 -0.2 0.1 ... ... 0.3 0.1 ... ... -0.1 ... ... -0.1 ... ... -0.3 -2.0 0.4 0.7 0.6 0.4 0.7 1.4 1.1 ... 0.2 0.3 0.5 5.1 -0.2 0.9 -1.7 3.6 0.6 5.7 0.2 0.9 -2.4 -0.6 4.0 ... -7.6 1.0 0.4 ... 1.5 1.6 0.1 -0.8 0.2 0.1 0.4 -0.1 0.8 0.5 0.7 0.3 -0.2 52-Wk % Sym Hi/Lo Chg PwrShS&P InfTech PSCT PreformedLine PLPC ProgressSoftware PRGS ProShUltPrQQQ TQQQ QAD B QADB ROBOGlblRobotics ROBO RichardsonElec RELL S&T Bancorp STBA SEI Investments SEIC SMART Global SGH SS&C Tech SSNC SafetyInsurance SAFT Sientra SIEN SiliconLab SLAB SpartanMotors SPAR Stamps.com STMP Synopsys SNPS TRowePrice TROW TetraTech TTEK TexasInstruments TXN TowneBank TOWN TradeDesk TTD Trupanion TRUP 2U TWOU US Lime&Min USLM UltraClean UCTT UtahMedProducts UTMD UTStarcom UTSI VSE VSEC VangdIntlHiDiv VYMI VangdRuss1000 VONE VangdRuss1000Grw VONG VangdTotIntlStk VXUS VaronisSystems VRNS VSInverseVIXSTerm XIV VicShDevEnhVol CIZ VicShIntlVolWtd CIL VicShUSEQIncmEnh CDC VicShUS500Vol CFA VicShUSLCHiDivVol CDL VidentIntlEquityFd VIDI VikingTheraWt VKTXW ViperEnergyPtrs VNOM VoyagerTherap VYGR vTvTherap VTVT WillametteValley WVVI WillisTwrsWatson WLTW Woodward WWD ZaiLab ZLAB 81.34 72.47 41.21 121.08 30.05 39.56 6.75 41.47 64.03 38.24 41.38 83.10 16.68 88.85 14.75 224.30 84.93 94.72 48.80 93.31 35.05 66.48 28.45 60.79 101.40 32.65 77.63 2.93 59.90 66.51 117.14 130.83 55.72 44.95 106.98 34.51 39.88 45.04 46.34 43.85 27.75 1.15 19.83 25.89 7.28 8.74 156.98 80.92 35.74 0.1 1.6 -0.8 -0.5 1.7 0.2 12.5 0.1 0.6 -5.8 0.9 0.6 2.3 1.1 21.0 2.1 2.3 1.7 -0.6 -0.3 -1.3 0.7 0.1 1.1 -2.7 1.7 -0.3 0.3 1.5 -0.1 ... 0.1 -0.1 2.2 0.8 0.1 0.3 0.1 0.1 0.1 ... ... -2.2 7.8 1.4 2.0 0.3 1.0 -4.3 Nasdaq lows - 41 BancFst pf BANFP BedBath BBBY CHF Solutions CHFS Cenveo CVO ChinaBiologic CBPO ConstellAlphaRt CNACR DHX Media VV DHXM DISH Network DISH DepoMed DEPO DiscoveryComm A DISCA DiscoveryComm C DISCK ExpressScripts ESRX Francesca's FRAN Fred's FRED FulgentGenetics FLGT GenMarkDiagn GNMK GreatElmCap GECC JMU JMU LexiconPharm LXRX NanoStringTech NSTG Navient NAVI NuCana NCNA Nuvasive NUVA OrganovoHoldings ONVO OspreyEnergy OSPR Popular BPOP PrimoWater PRMW ProShUltraProShQQQ SQQQ ProspectCapital PSEC RennovaHealth RNVA Rentech RTK TillCapital TIL Trevena TRVN UltaBeauty ULTA VS2xVIXMedTerm TVIZ VS2xVIXShortTerm TVIX VSVIXShortTerm VIIX Viacom B VIAB Viacom A VIA Vivus VVUS WalgreensBoots WBA 26.15 -3.5 21.03 -3.2 0.48 -14.6 2.35 -13.7 82.29 -15.0 0.26 -3.3 3.80 -0.8 48.73 -5.1 5.02 -5.2 19.27 -3.6 18.20 -3.7 57.41 -0.1 6.58 -1.7 5.22 -6.7 4.32 -4.0 8.77 -4.2 9.98 ... 1.22 -10.1 11.30 -1.6 9.56 -27.8 11.67 0.1 14.06 -6.7 49.25 1.0 1.46 -10.4 9.60 -0.9 32.64 -1.9 10.54 -1.9 25.27 0.6 6.20 -4.3 1.60 -5.9 0.19 -22.7 3.30 -6.2 1.84 -16.9 189.50 -8.5 11.70 0.7 9.30 -1.3 15.06 -0.8 23.45 -2.5 30.55 -3.4 0.85 -0.7 68.55 0.1 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | B7 MARKETS DIGEST EQUITIES Dow Jones Industrial Average S&P 500 Index Last Year ago 22841.01 t 31.88, or 0.14% High, low, open and close for each trading day of the past three months. Trailing P/E ratio 20.90 20.06 P/E estimate * 19.30 17.61 Dividend yield 2.25 2.60 All-time high 22872.89, 10/11/17 Nasdaq Composite Index Last 2550.93 t 4.31, or 0.17% High, low, open and close for each trading day of the past three months. Year ago Trailing P/E ratio 24.70 24.59 P/E estimate * 19.27 18.42 Dividend yield 1.96 2.13 All-time high: 2555.24, 10/11/17 Last Year ago 6591.51 t 12.04, or 0.18% High, low, open and close for each trading day of the past three months. Trailing P/E ratio * 25.98 24.35 P/E estimate * 21.15 19.97 Dividend yield 1.10 1.20 All-time high: 6603.55, 10/11/17 Current divisor 0.14523396877348 22800 2560 6600 22400 2530 6500 22000 2500 6400 21600 2470 6300 21200 2440 Session high UP Close t DOWN Session open 65-day moving average Open t Close 20800 6100 2410 20400 Aug. 6200 65-day moving average Session low Bars measure the point change from session's open July 65-day moving average Sept. 6000 2380 Oct. July Aug. Sept. July Oct. Aug. Sept. Oct. Weekly P/E data based on as-reported earnings from Birinyi Associates Inc. Major U.S. Stock-Market Indexes High Latest Close Low Net chg % chg High 52-Week Low % chg % chg 3-yr. ann. YTD Dow Jones Industrial Average 22884.82 22821.13 22841.01 -31.88 Transportation Avg 10049.73 9960.59 10038.13 746.88 Utility Average Total Stock Market Barron's 400 742.37 744.88 2.42 6586.32 6063.47 22872.89 17888.28 15.6 11.4 7967.02 24.6 11.0 8.3 754.80 625.44 13.7 12.9 9.9 26510.39 21514.15 687.05 521.59 20.0 26.8 13.7 13.9 10.3 11.7 0.33 26512.89 26446.10 26470.10 -40.29 686.15 683.41 685.10 -0.79 Nasdaq Stock Market Nasdaq Composite 6613.50 Nasdaq 100 6093.76 26.2 0.62 10038.13 -0.14 61.47 -0.15 -0.12 6591.51 -12.04 6069.99 -11.26 6603.55 6081.25 -0.18 -0.19 5046.37 4660.46 26.4 26.4 22.4 24.8 Late Trading Trading Diary Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer. and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic trading services, securities dealers and regional exchanges. Minimum share price of $2 and minimum after-hours volume of 5,000 shares. Volume, Advancers, Decliners Most-active issues in late trading Volume (000) Last Norwegian Cruise Line NCLH 9,642.0 58.92 VanEck Vectors Gold Miner GDX 8,210.5 SPDR S&P 500 Company Symbol SPY After Hours % chg High Low 0.06 0.10 59.09 58.83 23.68 -0.04 -0.17 23.72 23.68 6,791.3 254.53 -0.11 -0.04 255.05 253.17 46.30 0.06 0.13 46.33 46.20 5,487.3 20.29 -0.06 -0.29 20.40 20.20 LVLT Level 3 Comm iShares MSCI Brazil Cap EWZ 4,693.7 55.40 … unch. 55.66 55.33 4,258.8 42.80 0.04 0.09 42.83 42.76 iShares China Large-Cap FXI 2,559.2 45.87 … unch. 45.92 45.81 4.10 CTL CenturyLink 2555.33 2548.31 2550.93 -4.31 -0.17 2555.24 2085.18 19.6 13.9 10.2 MidCap 400 SmallCap 600 1822.29 911.52 1813.50 906.16 1819.73 909.43 -0.01 -1.11 -0.001 -0.12 1819.96 918.72 1476.68 703.64 19.8 23.3 9.6 8.5 11.7 14.2 Other Indexes Russell 2000 1508.43 1501.14 1505.16 -1.76 -0.12 1512.09 1156.89 23.8 10.9 12.6 Inotek Pharmaceuticals ITEK Finish Line Cl A Percentage gainers… 9.8 4.65 0.60 14.81 4.70 159.7 3.23 0.28 9.49 3.77 2.95 FINL 44.6 11.12 0.67 6.41 11.12 10.45 Spark Therapeutics ONCE 226.0 91.00 4.80 5.57 92.67 86.20 Zion Oil Gas ZN 13.1 3.06 0.15 5.15 3.10 2.75 3.58 -1.10 -23.50 4.56 3.40 46.68 -12.16 -20.67 58.84 43.05 EXFO EXFO 17.3 11.6 6.2 543.19 540.55 542.41 -0.78 -0.14 545.78 455.65 14.9 7.2 6.1 4285.52 4250.33 4269.74 -5.97 -0.14 4304.77 2834.14 38.5 38.9 12.3 NYSE Arca Pharma 555.63 554.18 554.89 -0.97 -0.17 555.86 463.78 10.9 15.2 2.7 KBW Bank 100.78 99.24 99.36 -1.06 -1.05 100.76 70.90 40.1 8.2 13.0 Tandem Diabetes Care TNDM 53.6 87.45 86.51 87.12 -0.02 96.72 73.03 5.5 10.5 4.1 Applied Optoelectronics AAOI 850.7 117.79 -17.4 -25.5 -17.2 4.40 -0.45 -9.28 5.40 4.35 33.6 29.2 -29.4 -22.4 ECYT Endocyte Rexahn Pharmaceuticals RNN 406.5 802.88 50.8 9.19 -40.6 19.1 2.70 -0.14 -4.93 2.88 2.70 TTM Technologies 184.0 15.00 -0.63 -4.03 15.63 15.00 NYSE Composite Value Line NYSE Arca Biotech PHLX§ Gold/Silver PHLX§ Oil Service PHLX§ Semiconductor CBOE Volatility 137.91 136.04 136.95 1219.35 10.33 1210.40 9.65 1211.10 9.91 12362.06 10289.35 Net chg 5,661.8 iShares MSCI Emg Markets EEM 15.5 16.2 Standard & Poor's 500 Index 12353.14 12325.03 12338.75 -23.31 NYSE NYSE Amer. -0.19 -0.02 -1.86 -1.34 -4.09 0.06 192.66 1215.19 22.51 0.61 -0.34 Philadelphia Stock Exchange Region/Country Index Close Percentage Gainers... Net chg –0.49 0.14 0.56 2946.69 382.15 258.45 The Global Dow DJ Global Index DJ Global ex U.S. DJ Americas 615.68 Sao Paulo Bovespa 76659.80 S&P/TSX Comp 15742.20 S&P/BMV IPC 49962.79 Santiago IPSA 4125.90 Americas Brazil Canada Mexico Chile TTMI Sources: SIX Financial Information; WSJ Market Data Group International Stock Indexes World ...And losers 390.28 390.89 4070.68 5360.81 12982.89 1441.19 22398.51 542.84 1143.96 10275.90 587.08 9297.34 7556.24 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 Asia-Pacific Australia China Hong Kong India Japan Singapore South Korea Taiwan S&P/ASX 200 5794.50 Shanghai Composite 3386.10 Hang Seng 28459.03 S&P BSE Sensex 32182.22 Nikkei Stock Avg 20954.72 Straits Times 3303.09 Kospi 2474.76 Weighted 10711.44 Latest % chg YTD % chg –0.02 16.4 17.2 20.8 0.04 0.22 13.9 27.3 3.0 9.5 28.0 –0.14 –0.88 Closed … –58.20 –0.37 –176.89 –0.35 –23.21 –0.56 0.03 0.13 0.02 0.08 0.29 11.64 –0.03 –1.60 0.09 12.21 Closed … –153.70 –0.68 0.20 1.08 0.06 0.64 –0.02 –2.50 0.25 1.47 0.35 32.00 0.30 22.43 8.0 11.6 12.9 10.3 13.1 –2.0 16.4 12.3 –0.7 9.9 9.8 13.1 5.8 0.39 2.3 9.1 29.4 20.9 9.6 14.7 22.1 15.8 22.40 –2.18 69.46 348.23 73.45 22.81 16.60 70.25 –0.06 0.24 1.09 0.35 0.70 0.68 0.66 Company Symbol CarGurus Cl A OrthoPediatrics Ardelyx Restoration Robotics Spartan Motors CARG Codexis China Lending China Commercial Credit Trillium Therapeutics Polar Power CDXS Zafgen Richardson Electronics CASI Pharmaceuticals Par Technology Foamix Pharmaceuticals ZFGN 27.58 11.58 19.22 6.22 7.80 2.40 9.92 2.92 14.70 2.55 ARDX HAIR SPAR 72.38 47.85 44.44 41.71 20.99 ... ... 16.30 ... 14.75 ... ... 4.05 ... 6.30 ... ... -42.8 ... 58.2 AcelRx Pharmaceuticals J.Jill Helios Matheson Analy NanoString Technologies WPCS International ACRX Symbol AT&T Bank of America Advanced Micro Devices Micron Technology Snap T Infinity Pharmaceuticals General Electric Finl Select Sector SPDR Comcast Cl A Rite Aid INFI BAC AMD MU SNAP HAWK 4.03 6.75 3.64 11.52 6.80 0.46 0.75 0.36 1.07 0.62 12.89 12.50 10.98 10.24 9.95 5.46 6.75 4.84 11.70 11.27 2.89 5.31 0.91 4.69 4.03 13.5 8.9 145.9 125.0 -26.6 China Biologic Prod Cenveo Sorrento Therapeutics Cherokee Celsion CBPO Home Equity 6.00% Home equity loan t 5.00 4.00 t 3.00 2.00 N D J FMAM J J A S O 2016 2017 Cambridge Savings Bank 2.99% Cambridge, MA 888-418-5626 Third Federal S&LA Cleveland, OH Investors Bank Millburn, NJ 3.24% 888-THIRDFED 3.50% 855-422-6548 Dollar Bank, a Federal Savings Bank 3.74% Pittsburgh, PA 800-828-5527 1 3 6 month(s) One year ago 1 2 3 5 710 years maturity Interest rate Federal-funds rate target 1.00-1.25 1.00-1.25 Prime rate* 4.25 4.25 Libor, 3-month 1.35 1.36 Money market, annual yield 0.35 0.32 Five-year CD, annual yield 1.45 1.46 30-year mortgage, fixed† 3.88 3.91 15-year mortgage, fixed† 3.15 3.19 Jumbo mortgages, $424,100-plus† 4.39 4.40 Five-year adj mortgage (ARM)† 3.43 3.38 New-car loan, 48-month 3.07 3.06 HELOC, $30,000 5.24 5.23 3-yr chg 52-Week Range (%) Low 0 2 4 6 8 High (pct pts) 0.25 l l 3.50 0.88 l 0.26 l 1.19 l l 3.54 l 2.81 l 4.23 l 3.13 l 2.85 l 4.57 1.25 4.25 1.36 0.36 1.47 4.33 3.50 4.88 4.03 3.36 5.30 1.00 1.00 1.13 -0.10 -0.08 -0.16 -0.04 0.13 -0.10 -0.16 0.82 Ardelyx J.Jill Protagonist Therapeutics Handy Harman China Rapid Finance ADR ARDX 6180.9 3.73 123.35 44.6 23.05 -0.09 5.4 26.12 -0.76 150.3 35.95 -3.93 82.0 1.65 -7.30 3.84 32.38 26.46 42.18 8.77 0.84 22.83 19.11 30.02 1.63 Blackhawk Network Hldgs HAWK BLES Inspire Global Hope ETF WisdomTree Jap Hdg SmCapDXJS NanoString Technologies NSTG ACRX AcelRx Pharmaceuticals 10% 0 1.50 –5 0.75 –10 0.00 –15 30 Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest banks.† Excludes closing costs. Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com WSJ Dollar index s Euro s Yen Country/currency WSJ .COM 5.75 14.40 38.86 23.45 3.38 52-Week Low % chg 1.95 4.82 2.20 9.56 1.13 -36.6 ... 173.7 -43.0 56.2 -20.48 -17.89 -17.06 -16.88 -15.45 46.70 32.75 72.60 3.90 8.55 1.49 8.00 1.84 26.36 8.00 4.4 -93.3 -67.8 -68.2 -21.7 82.59 -14.56 -14.99 2.36 -0.38 -13.74 3.20 -0.50 -13.51 2.30 -0.35 -13.21 5.15 -0.69 -11.82 125.99 82.29 8.50 2.35 7.40 1.50 11.75 2.10 16.38 1.24 -30.4 -66.4 -55.0 -79.5 -67.4 35.15 4.68 2.69 1.97 16.75 -9.05 -1.02 -0.55 -0.40 -3.06 JILL PTGX HNH XRF Volume % chg from Latest Session (000) 65-day avg Close % chg 52-Week High Low 26,032 10,328 1,421 430 1,619 8474 2901 2183 1731 1710 7.80 44.44 4.86 -51.06 16.75 -15.45 30.30 0.17 9.90 -5.35 16.30 4.05 14.40 4.82 26.36 8.00 34.30 19.00 12.30 5.60 8,503 124 405 2,303 24,182 1704 1419 1318 1248 1207 35.15 -20.48 27.38 -0.51 42.98 -0.37 11.30 -27.84 2.15 -59.81 46.70 32.75 27.68 25.01 43.21 31.40 23.45 9.56 5.75 1.95 US$vs, YTDchg Thurs in US$ per US$ (%) Americas Argentina peso .0574 17.4145 Brazil real .3154 3.1705 Canada dollar .8016 1.2475 Chile peso .001601 624.50 Colombia peso .0003400 2940.83 Ecuador US dollar 1 1 Mexico peso .0529 18.9033 Peru new sol .3075 3.252 Uruguay peso .03406 29.3600 Venezuela b. fuerte .098833 10.1181 Yield (%) Last Week ago 52-Week High Low Total Return (%) 52-wk 3-yr 2.075 2.083 2.237 1.466 –1.643 1.998 2.323 2.998 2.570 n.a. 2.830 n.a. 2.352 3.001 2.570 5.082 2.830 1.933 2.609 3.390 2.790 n.a. 3.120 n.a. 1.739 2.648 2.050 n.a. 2.170 n.a. 1.549 2.283 0.843 n.a. 0.666 n.a. 805.560 5.415 5.405 6.290 5.279 5.055 5.991 1.884 3.869 2.410 n.a. 2.233 n.a. Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Australian dollar .7820 1.2788 China yuan .1517 6.5900 Hong Kong dollar .1281 7.8079 India rupee .01538 65.017 Indonesia rupiah .0000740 13505 Japan yen .008906 112.29 Kazakhstan tenge .002990 334.42 Macau pataca .1244 8.0380 Malaysia ringgit .2369 4.2220 New Zealand dollar .7130 1.4025 Pakistan rupee .00953 104.900 Philippines peso .0194 51.492 Singapore dollar .7394 1.3525 South Korea won .0008827 1132.89 Sri Lanka rupee .0065053 153.72 Taiwan dollar .03311 30.206 9.7 –2.6 –7.2 –6.8 –2.0 unch –8.8 –3.0 0.03 1.2 Track the Markets Compare the performance of selected global stock indexes, bond ETFs, currencies and commodities at WSJ.com/TrackTheMarkets –7.9 –5.1 0.7 –4.3 –0.1 –4.0 0.2 1.5 –5.9 –2.9 0.5 3.8 –6.6 –6.2 3.6 –6.9 US$vs, YTDchg Thurs in US$ per US$ (%) Country/currency .03018 33.130 –7.5 .00004401 22720 –0.2 Thailand baht Vietnam dong Europe Czech Rep. koruna Denmark krone Euro area euro Hungary forint Iceland krona Norway krone Poland zloty Russia ruble Sweden krona Switzerland franc Turkey lira Ukraine hryvnia UK pound .04572 21.872 –14.8 .1589 6.2919 –11.0 1.1832 .8452 –11.1 .003832 260.94 –11.3 .009521 105.03 –7.0 .1266 7.9007 –8.6 .2771 3.6092 –13.8 .01732 57.752 –5.7 .1231 8.1208 –10.8 1.0250 .9756 –4.2 .2736 3.6545 3.7 .0376 26.5950 –1.8 1.3262 .7540 –6.9 Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand 2.6521 .3771 –0.03 .0568 17.6210 –2.8 .2857 3.5003 –9.0 3.3114 .3020 –1.2 2.5964 .3852 0.05 .2677 3.736 2.6 .2666 3.7504 –0.01 .0742 13.4802 –1.6 Close Net Chg % Chg YTD%Chg WSJ Dollar Index 86.43 –0.004–0.005 –7.00 Sources: Tullett Prebon, WSJ Market Data Group Commodities COMMODITIES Thursday 52-Week Pricing trends on someClose raw materials, or commodities Net chg % Chg High Low DJ Commodity Get real-time U.S. stock quotes and track most-active stocks, new highs/lows and mutual funds. Plus, deeper money-flows data and email delivery of key stock-market data. Available free at WSJMarkets.com 2.15 -3.20 -59.81 4.86 -5.07 -51.06 20.50 -12.40 -37.69 11.30 -4.36 -27.84 2.03 -0.55 -21.32 Asia-Pacific 2016 2017 1460.786 EMBI Global, J.P. Morgan High U.S.-dollar foreign-exchange rates in late New York trading Yen, euro vs. dollar; dollar vs. major U.S. trading partners 5 Latest Session Close Net chg % chg Currencies 10-yr Treasury, Ryan ALM 1735.659 DJ Corporate 380.026 Aggregate, Barclays Capital 1940.640 High Yield 100, Merrill Lynch n.a. Fixed-Rate MBS, Barclays 1988.220 Muni Master, Merrill n.a. Treasury, Ryan ALM * 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. * 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 Forex Race 2.25 Close NYSE Arca Ranked by change from 65-day average* 35.10 15.60 6.22 16.17 11.28 Corporate Borrowing Rates and Yields Bond total return index CLSN 43.03 26.30 15.65 42.07 29.44 237.0 9.6 12.7 121.8 124.1 Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Yield/Rate (%) Last (l)Week ago CHKE 35.86 -6.10 25.45 -1.47 14.20 2.31 40.58 -2.48 16.55 3.57 3.75% Thursday SRNE 80,602 71,061 69,462 66,657 63,101 3.00 1.95% 414-258-5880 CVO Symbol Benchmark Yields Treasury yield curve andtoRates Yield maturity of current bills, t Prime rate WaterStone Bank, SSB Wauwatosa, WI PTGX Company * Volumes of 100,000 shares or more are rounded to the nearest thousand 5.23% TRVN 52-Week High Low notes and bonds Bankrate.com avg†: ORPN Volume % chg from Latest Session (000) 65-day avg Close % chg 60,528 GE 58,631 XLF 53,647 CMCSA 50,910 RAD 49,523 t A consumer rate against its benchmark over the past year TNDM Volume Movers s Selected rates WPCS Blackhawk Network Hldgs Tandem Diabetes Care Bioblast Pharma Trevena Protagonist Therapeutics CREDIT MARKETS & CURRENCIES U.S. consumer rates NSTG 79.6 -54.8 97.1 -57.2 ... Sources: SIX Financial Information; WSJ Market Data Group Consumer Rates and Returns to Investor HMNY 3.60 2.00 0.89 4.15 4.12 Most Active Stocks Company JILL 7.90 8.30 4.00 15.87 11.50 POLA FOMX Symbol 17.16 16.89 16.21 14.31 13.18 TRIL PAR Company 1.15 0.52 0.47 0.80 0.70 CCCR CASI High 52-Week Low % chg 7.85 3.60 3.37 6.40 6.01 CLDC RELL Nasdaq Total volume*1,991,560,812 174,503,804 Adv. volume* 910,254,528 49,202,618 Decl. volume*1,035,855,477 121,338,612 Issues traded 3,061 1,259 Advances 1,217 631 Declines 1,674 575 Unchanged 170 53 New highs 223 309 New lows 41 31 Closing tick 215 40 Closing Arms† 0.83 2.43 Block trades* 8,828 967 Percentage Losers Latest Session Close Net chg % chg KIDS Total volume* 787,568,692 10,978,103 Adv. volume* 321,320,965 3,464,324 Decl. volume* 450,498,217 7,257,892 Issues traded 3,051 330 Advances 1,539 110 Declines 1,384 198 Unchanged 128 22 New highs 222 5 New lows 32 8 Closing tick 33 24 Closing Arms† 1.76 0.95 Block trades* 6,319 143 TR/CC CRB Index Crude oil, $ per barrel Natural gas, $/MMBtu Gold, $ per troy oz. 593.78 3.60 183.28 50.60 2.989 1293.30 -0.22 -0.70 0.100 7.50 0.61 593.78 527.06 -0.12 195.14 54.45 -1.36 3.93 3.46 0.58 1346.00 166.50 42.53 2.56 1127.80 % Chg 9.32 YTD % chg 4.68 -3.10 -4.80 0.32 -5.81 -10.54 -19.74 3.05 12.46 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. B8 | Friday, October 13, 2017 COMMODITIES Futures Contracts | WSJ.com/commodities Corn (CBT)-5,000 bu.; cents per bu. 346.00 t 354.00 342.50 349.00 Settle Open interest Chg March'18 359.25 367.75 t 356.25 362.75 3.25 276,326 Oats (CBT)-5,000 bu.; cents per bu. 252.75 264.00 251.75 261.75 9.00 4,543 Dec March'18 254.75 265.75 254.75 263.75 8.50 1,259 Soybeans (CBT)-5,000 bu.; cents per bu. 965.00 997.75 959.00 992.00 26.75 280,223 Nov Jan'18 975.25 1007.75 969.50 1002.50 26.50 186,812 Soybean Meal (CBT)-100 tons; $ per ton. 311.70 324.20 310.50 322.70 11.50 307 Oct Dec 315.10 328.80 314.10 326.30 11.40 150,351 Soybean Oil (CBT)-60,000 lbs.; cents per lb. 33.08 33.17 32.80 33.07 .16 188 Oct Dec 33.15 33.52 32.85 33.28 .13 176,459 Rough Rice (CBT)-2,000 cwt.; $ per cwt. 1206.50 1233.00 1191.50 1225.00 21.50 6,577 Nov Jan'18 1230.00 1263.00 1221.50 1254.50 21.00 3,217 Wheat (CBT)-5,000 bu.; cents per bu. 432.50 437.75 428.00 430.50 –2.75 255,651 Dec March'18 451.75 456.25 447.25 449.50 –2.75 97,700 Wheat (KC)-5,000 bu.; cents per bu. 428.00 433.25 422.50 426.25 –2.00 136,424 Dec March'18 444.75 451.25 441.00 444.50 –2.00 80,009 Wheat (MPLS)-5,000 bu.; cents per bu. 618.00 620.50 610.50 611.25 –7.75 35,710 Dec March'18 632.00 633.25 624.25 625.00 –7.75 23,712 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. 153.975 155.025 152.950 153.550 –.600 6,368 Oct Nov 155.400 156.675 153.925 154.550 –1.125 19,797 Cattle-Live (CME)-40,000 lbs.; cents per lb. Oct 113.500 114.000 111.775 112.350 –1.425 12,976 Dec 118.250 119.000 116.625 117.275 –1.250 151,331 Hogs-Lean (CME)-40,000 lbs.; cents per lb. 61.475 61.500 60.600 60.700 –.550 12,696 Oct Dec 62.750 63.125 61.300 61.625 –.875 117,469 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. 411.80 419.20 s 411.80 417.20 8.00 4,204 Nov Jan'18 399.70 407.50 399.70 403.80 5.40 1,790 Milk (CME)-200,000 lbs., cents per lb. 16.68 16.77 16.68 16.69 –.02 3,997 Oct Nov 16.13 16.27 16.05 16.11 –.06 4,567 Cocoa (ICE-US)-10 metric tons; $ per ton. 2,120 2,121 2,077 2,090 –7 110,413 Dec March'18 2,130 2,132 2,092 2,102 –7 77,562 1,464 176,256 220 399,573 63,189 13,057 11,662 11,143 30,788 1,982 11 70,635 512 141,644 295,989 470,916 260,239 232,144 196,567 259,813 93,700 96,145 96,010 106,145 224,147 192,365 178,158 79,078 155,535 121,852 Agriculture Futures Dec Contract High hilo Low Open Open interest 3.00 795,006 Cash Prices | WSJ.com/commodities Thursday, October 12, 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. Thursday Thursday 0.9377 1.0621 2.910 2.890 2.200 2.500 2.590 0.480 2.810 55.500 11.750 Propane,tet,Mont Belvieu-g Butane,normal,Mont Belvieu-g NaturalGas,HenryHub-i NaturalGas,TranscoZone3-i NaturalGas,TranscoZone6NY-i NaturalGas,PanhandleEast-i NaturalGas,Opal-i NaturalGas,MarcellusNE PA-i NaturalGas,HaynesvilleN.LA-i Coal,C.Aplc.,12500Btu,1.2SO2-r,w Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w Thursday 17.1950 13022 (U.S.$ equivalent) Coins,wholesale $1,000 face-a Energy LBMA Platinum Price PM *929.0 Platinum,Engelhard industrial 939.0 Platinum,Engelhard fabricated 1039.0 Palladium,Engelhard industrial 985.0 Palladium,Engelhard fabricated 1085.0 Aluminum, LME, $ per metric ton *2124.0 Copper,Comex spot 3.1040 Iron Ore, 62% Fe CFR China-s 57.4 Shredded Scrap, US Midwest-s,w 316 Steel, HRC USA, FOB Midwest Mill-s n.a. Food Beef,carcass equiv. index choice 1-3,600-900 lbs.-u select 1-3,600-900 lbs.-u Broilers, National comp wghtd-u,w Butter,AA Chicago Cheddar cheese,bbl,Chicago Cheddar cheese,blk,Chicago Milk,Nonfat dry,Chicago lb. Cocoa,Ivory Coast-w Coffee,Brazilian,Comp Coffee,Colombian, NY Eggs,large white,Chicago-u Flour,hard winter KC Hams,17-20 lbs,Mid-US fob-u Hogs,Iowa-So. Minnesota-u Pork bellies,12-14 lb MidUS-u Pork loins,13-19 lb MidUS-u Steers,Tex.-Okla. Choice-u Steers,feeder,Okla. City-u,w Fibers and Textiles Gold, per troy oz 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 1296.35 1393.58 1290.25 1432.17 *1290.20 *1289.25 1346.28 1359.23 1359.23 1568.78 1271.87 1359.23 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA Gold Price AM LBMA Gold Price PM Krugerrand,wholesale-e Maple Leaf-e American Eagle-e Mexican peso-e Austria crown-e Austria phil-e Silver, troy oz. 17.2000 20.6400 17.1950 21.4940 £13.0600 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price 0.6150 0.6784 *78.80 61.000 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 323.30 9.4800 7.2125 4.1750 3.5825 5.1825 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 Other metals Metals n.a. 69 3.1300 81.1 473.2 230 86 255 2.9525 380.00 24.00 7.7050 174.20 165.60 0.8587 2.3325 168.50 172.50 77.25 n.a. 1.2483 1.4499 1.2350 14.85 0.68 58.80 n.a. 0.8610 n.a. 158.38 Fats and Oils 35.5400 0.2750 n.a. 0.3191 n.a. 0.3300 Corn oil,crude wet/dry mill-u,w Grease,choice white,Chicago-h Lard,Chicago-u Soybean oil,crude;Centl IL-u Tallow,bleach;Chicago-h Tallow,edible,Chicago-u KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence; L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 10/11 Source: WSJ Market Data Group Macro & Market Economics Watching the Gauges: U.S. Supply and Demand Inventories, 000s barrels Expected Previous change week Year ago 4-week avg 5-year avg 1,294 1,344 1,298 1,204 9,801 ... Current Year ago 4-week avg 5-year avg 1,292,744 ... 9,774 9,866 9,835 9,519 462,216 221,426 21,374 46 21,328 200,052 -1,700 ... -600 ... ... ... 465 219 22 0 22 197 474 225 25 0 25 201 468 218 22 0 22 197 416 213 36 0 35 178 7,617 860 59 0 59 800 ... ... ... ... ... ... 7,214 7,861 862 762 129 66 0 0 129 66 733 695 7,407 863 61 0 61 801 7,667 596 70 0 70 527 Kerosene-type jet fuel Distillates Heating oil Diesel Residual fuel oil Other oils 3,595 ... 4 4 3 4 ... ... 43,089 133,959 11,398 122,562 35,800 295,803 ... -1,400 ... ... ... ... Net crude, petroleum products, incl. SPR 1,965,193 ... 43 135 11 124 37 296 ... ... Current ... ... 43 157 13 144 38 283 42 137 11 126 36 297 41 134 18 116 37 260 89 85 23 62 100 921 ... ... ... ... ... ... 277 72 41 31 170 1,068 52 95 49 46 46 959 208 82 23 59 116 1,039 112 71 19 51 173 796 1,968 2,039 1,972 1,899 3,856 ... 2,751 5,255 3,717 5,781 Natural gas storage Weekly Demand, 000s barrels per day Expected Previous change week Year ago 4-week avg 5-year avg 19,716 ... 19,714 20,738 motor gasoline Kerosene-type 9,480 ... 9,241 9,264 9,421 8,816 jet fuel Distillates Residual fuel oil Propane/propylene Other oils 1,792 3,648 355 931 3,509 ... ... ... ... ... 1,475 4,007 374 965 3,653 1,664 4,266 614 931 3,999 1,718 3,916 304 1,010 3,875 1,495 3,594 213 ... ... Billions of cubic feet; weekly totals 4250 20,243 19,049 Natural gas, lower 48 states Finished 3250 t t Five-year average for each week Amount Yld % New/Old Frq Payable / Record –.02 427,815 –.02 124,406 Oct Dec March 27.00 27.00 27.00 Cotton (ICE-US)-50,000 lbs.; cents per lb. Dec March'18 68.83 68.32 69.11 68.61 67.66 67.25 27.00 67.84 67.37 162.20 161.05 164.80 163.40 156.60 156.20 2,233 –.89 125,532 –.93 71,510 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Nov Jan'18 .02 158.90 158.70 –3.70 –2.75 4,094 3,533 Interest Rate Futures Currency Futures Japanese Yen (CME)-¥12,500,000; $ per 100¥ .8918 .8944 .8889 .8912 1.3237 1.3249 .8008 .8009 1.3290 1.3316 1.3124 1.3147 Swiss Franc (CME)-CHF 125,000; $ per CHF Dec March'18 1.0316 1.0396 .8026 .8029 .0011 337 .0011 174,450 1.3275 1.3299 .0056 695 .0055 178,347 1.0339 1.0406 1.0284 1.0356 1.0293 –.0027 1.0362 –.0028 49,553 158 Australian Dollar (CME)-AUD 100,000; $ per AUD .7788 .7797 .7782 .7792 .7792 Oct Nov Dec Jan'18 March .7835 .7832 .7829 .7827 .7819 .7788 .7791 .7782 .7786 .7792 .7828 .7826 .7822 .7821 .7816 .8912 .8936 .05286 .05293 .0039 740 .0039 621 .0039 135,493 .0039 161 .0039 597 .05229 .05266 –.00019 187,022 1.1828 1.1868 1.1836 –.0021 1,367 1.1875 –.0022 437,850 Euro (CME)-€125,000; $ per € Oct Dec 1.1863 1.1901 1.1881 1.1921 Index Futures Mini DJ Industrial Average (CBT)-$5 x index Dec March'18 22835 s 22814 s 22770 22762 2553.30 s 2546.80 22813 22796 22798 22785 S&P 500 Index (CME)-$250 x index Dec 2552.10 2549.40 Mini S&P 500 (CME)-$50 x index 2552.25 2553.25 s 2546.25 2549.50 Dec March'18 2552.50 2553.50 s 2546.75 2549.75 Mini S&P Midcap 400 (CME)-$100 x index 1818.40 1822.30 1813.30 1819.20 Dec Mini Nasdaq 100 (CME)-$20 x index 6083.5 6097.0 s 6066.5 6074.8 Dec March'18 6096.0 6108.8 s 6079.3 6087.0 Mini Russell 2000 (ICE-US)-$100 x index 1508.00 1511.30 1501.10 1507.80 Dec Mini Russell 1000 (ICE-US)-$100 x index 1415.20 1415.40 1412.60 1412.60 Dec U.S. Dollar Index (ICE-US)-$1,000 x index 92.76 93.07 92.64 92.90 Dec March'18 92.44 92.71 92.37 92.61 .0014 1,609 .0014 245,978 –18 154,379 –14 1,378 –3.60 53,599 –3.50 3,043,432 –3.50 26,775 –.80 92,775 –7.8 280,723 –8.0 1,008 .10 61,930 .10 295 .07 .07 42,690 1,747 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 YTD total return (%) Yield (%) Latest Low High Index Mortgage-Backed Bloomberg Barclays Broad Market Bloomberg Barclays 3.3 U.S. Aggregate 1940.64 Total return close 2.570 2.050 2.790 U.S. Corporate Indexes Bloomberg Barclays 1988.22 2.4 Mortgage-Backed 1956.84 2.0 Ginnie Mae (GNMA) 2.770 2.060 3.090 2.830 2.170 3.120 3.140 2.870 3.520 1165.62 2.5 Fannie mae (FNMA) 2.850 2.220 3.120 2622.25 3.9 Intermediate 2.670 2.300 3.010 1795.24 2.6 Freddie Mac (FHLMC) 2.860 2.230 3.130 3829.36 8.9 Long term 4.150 4.110 4.710 n.a. n.a. Muni Master n.a. n.a. n.a. 567.42 4.2 Double-A-rated 2.600 2.230 2.870 n.a. n.a. 7-12 year n.a. n.a. n.a. 3.430 3.220 3.870 n.a. n.a. 12-22 year n.a. n.a. n.a. n.a. n.a. 22-plus year n.a. n.a. n.a. 5.5 2775.98 U.S. Corporate 6.1 716.37 Triple-B-rated High Yield Bonds Merrill Lynch n.a. n.a. High Yield Constrained n.a. n.a. n.a. n.a. n.a. Triple-C-rated n.a. n.a. n.a. 541.68 n.a. n.a. High Yield 100 n.a. n.a. n.a. 748.28 -0.7 Canada 2.150 1.370 2.190 n.a. n.a. Global High Yield Constrained n.a. n.a. n.a. 368.67 -0.1 EMU§ 1.162 0.673 1.363 Europe High Yield Constrained n.a. n.a. n.a. U.S Agency Bloomberg Barclays 707.26 France 0.890 0.400 1.210 Germany 0.490 0.050 0.620 n.a. n.a. Global Government J.P. Morgan† 507.58 0.9 Global Government 1.460 1.010 1.560 0.1 -1.4 1639.95 2.1 U.S Agency 1.930 1.320 1.960 287.48 -0.2 Japan 0.420 0.170 0.460 1467.13 1.4 10-20 years 1.760 1.140 1.760 559.82 -1.1 Netherlands 0.630 0.160 0.760 20-plus years 2.930 2.630 3.460 910.14 -0.4 U.K. 1.670 1.340 1.790 2.780 2.410 3.090 805.56 7.2 3352.28 4.7 Yankee 2454.55 9.0 Emerging Markets ** 5.415 5.279 6.290 *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds ** EMBI Global Index † In local currency § Euro-zone bonds Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan Global Government Bonds: Mapping Yields Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session Country/ Coupon (%) Maturity, in years Year ago 1.525 2.350 1.343 2.169 0.863 1.773 l 1.952 1.879 1.757 44.3 42.7 l 2.828 2.649 2.267 48.9 47.8 49.4 France 2 -0.498 t 10 0.716 t l -0.480 -0.515 -0.598 -200.5 -146.1 l 0.737 0.697 0.365 -161.3 -140.8 Germany 2 -0.701 t 10 0.448 t l -0.692 -0.722 l 0.466 Italy 2 -0.101 t 10 2.060 t l l Japan 2 -0.141 t 10 0.068 s l l 0.064 0.020 -0.060 -225.6 -228.6 -183.3 Spain 2 -0.283 t 10 1.637 t l -0.269 -0.309 -0.201 -178.8 -179.4 -106.3 l 1.659 1.593 1.062 -68.6 0.476 s 1.383 s l 0.463 0.274 0.231 l 1.383 1.137 U.S. 2 1.505 t 10 2.323 t l l 1.948 t 2.812 t 2.750 Australia 2 2.750 10 0.000 0.500 Spread Under/Over U.S. Treasurys, in basis points Latest Prev Year ago Month ago 1.375 2.250 1.000 Yield (%) Latest(l) 0 20 40 60 80 100 120 Previous 2.200 0.100 2.750 1.750 U.K. 2 4.250 10 -200.2 -160.7 89.5 -221.7 -152.1 0.402 -0.659 -220.6 0.070 -187.5 -188.5 -170.3 -0.098 -0.080 -0.060 -160.6 -162.3 -92.3 2.103 2.021 1.418 -26.4 -24.7 -35.5 -0.140 -0.141 -0.261 -164.5 -166.4 -112.3 -102.8 0.953 -94.0 -69.1 -71.1 -106.1 -63.2 -96.7 -82.0 Source: Tullett Prebon Corporate Debt in that same company’s share price. Investment-grade spreads that tightened the most… Spread*, in basis points One-day change Stock Performance Close ($) % chg Issuer Symbol Coupon (%) Ford Motor JPMorgan Chase PepsiCo General Electric F JPM PEP GE 4.346 Dec. 8, ’26 7.900 April 30, ’49 3.600 March 1, ’24 5.500 Jan. 8, ’20 144 –79 11 8 –31 –15 –11 –10 141 –20 n.a. 16 12.12 95.99 112.45 23.05 –2.10 –0.88 0.84 –0.09 Pitney Bowes Air Lease 21St Century Fox America Northrop Grumman PBI AL FOXA NOC 4.625 March 15, ’24 4.250 Sept. 15, ’24 3.000 Sept. 15, ’22 2.550 Oct. 15, ’22 348 85 51 50 –9 –8 –8 –8 316 n.a. 55 n.a. 13.85 44.20 26.14 298.68 –0.65 0.82 0.11 1.18 Maturity Current Last week …And spreads that widened the most Viacom Goldman Sachs Westpac Banking Coca–Cola VIA GS WSTP KO 5.875 Feb. 28, ’57 2.750 Sept. 15, ’20 2.600 Nov. 23, ’20 1.875 Oct. 27, ’20 360 61 51 23 70 21 11 10 284 63 54 22 32.45 239.80 ... 46.11 –3.42 –1.07 ... 0.02 JPMorgan Chase Hess Telefonica Europe Ford Motor JPM HES TELEFO F 4.400 July 22, ’20 4.300 April 1, ’27 8.250 Sept. 15, ’30 4.750 Jan. 15, ’43 43 210 175 200 9 8 8 7 48 208 n.a. 197 95.99 44.20 ... 12.12 –0.88 –0.29 ... –2.10 FTS International Toys R US MDC Holdings Energy Future Holdings FTSINT TOY MDC TXU 6.250 7.375 6.000 6.550 May 1, ’22 Oct. 15, ’18 Jan. 15, ’43 Nov. 15, ’34 95.250 28.563 97.500 14.750 Genesis Energy Intelsat Luxembourg S.A. Parker Drilling Opal Acquisition GEL 5.625 INTEL 7.750 PKD 6.750 ONECAL 10.000 June 15, ’24 June 1, ’21 July 15, ’22 Oct. 1, ’24 98.500 73.500 80.250 86.250 J A S .8042 .8047 British Pound (CME)-£62,500; $ per £ Dec 152-140 153-060 152-100 153-030 17.0 740,139 Dec March'18 151-120 151-290 151-120 151-290 17.0 85 Treasury Notes (CBT)-$100,000; pts 32nds of 100% Dec 125-060 125-140 125-050 125-125 5.0 3,139,856 March'18 125-000 125-035 125-000 125-020 5.5 4,034 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Dec 117-102 117-150 117-097 117-132 2.0 2,979,093 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Dec 107-240 107-252 107-237 107-245 .2 1,674,728 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. 98.845 98.848 98.845 98.845 … 243,065 Oct Jan'18 98.655 98.655 98.650 98.655 … 348,263 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Dec 101.438 101.516 101.281 101.500 .203 29,688 1 Month Libor (CME)-$3,000,000; pts of 100% 98.5875 98.5875 t 98.5825 98.5825 –.0025 2,160 Dec Sept'18 98.3250 98.3250 t 98.3250 98.3025 … 100 Eurodollar (CME)-$1,000,000; pts of 100% Oct 98.6375 98.6375 98.6350 98.6350 … 167,381 Dec 98.4850 98.4950 98.4850 98.4900 .0050 1,850,555 March'18 98.3550 98.3700 98.3550 98.3600 .0050 1,337,852 Dec 98.0950 98.1200 98.0850 98.1000 .0050 1,641,469 .8897 .8916 Open interest Mexican Peso (CME)-MXN 500,000; $ per MXN Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Oct Dec .8030 .8031 Coupon (%) Company Symbol Amount Yld % New/Old Frq Payable / Record Funds and investment companies AMGP AM GT 1.2 .059 /.027 Q 4.3 .34 /.32 Q 1.7 .14 /.10 Q PAGP 5.6 Nov23 /Nov01 Nov16 /Nov01 Dec01 /Nov01 Reduced .30 /.55 Q Nov14 /Oct31 Initial Hawaiian Holdings 14.28 14.36 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. Chg Maturity Bond Price as % of face value Current One-day change 3.50 2.56 2.00 1.75 1.50 1.25 1.25 1.00 Last week Stock Performance Close ($) % chg n.a. n.a. 96.720 n.a. ... ... 35.93 ... ... ... 0.90 ... n.a. 70.500 79.500 86.625 25.14 ... 0.95 ... –4.70 ... –9.52 ... 89.875 63.625 88.875 76.750 20.35 ... 1.65 2.36 0.39 ... –7.30 –13.74 95.750 n.a. n.a. 97.000 ... 11.80 ... 6.84 ... 0.08 ... 1.03 …And with the biggest price decreases Increased HA Oct Dec Symbol Dividend announcements from October 12. Antero Midstream GP Antero Midstream Partners Goodyear Tire –.45 112,728 –.45 57,962 Issuer Dividend Changes Symbol 13.96 14.07 Settle Canadian Dollar (CME)-CAD 100,000; $ per CAD 126.35 130.10 1250 Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires Company 14.34 14.41 Contract High hilo Low Open High-yield issues with the biggest price increases… 250 O N D J F M A M J 2016 2017 125.40 129.15 Open interest 2250 Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions. Plains GP Holdings 14.24 14.33 1.450 Natural gas (bcf) 127.80 131.50 Chg Sugar-World (ICE-US)-112,000 lbs.; cents per lb. March May 0.100 Crude oil and petroleum prod Crude oil excluding SPR Gasoline Finished gasoline Reformulated Conventional Blend. components Total petroleum product Expected Previous change week 127.20 130.75 0.050 Imports, 000s barrels per day Settle Coffee (ICE-US)-37,500 lbs.; cents per lb. Dec March'18 0.000 Inventories, imports and demand for the week ended October 6. Current figures are in thousands of barrels or thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas import and demand data are available monthly only. Current Contract High hilo Low Open Metal & Petroleum Futures Contract Open High hi lo Low Settle Chg Copper-High (CMX)-25,000 lbs.; $ per lb. 3.0800 3.1155 3.0800 3.1040 0.0240 Oct Dec 3.0935 3.1360 3.0835 3.1200 0.0245 Gold (CMX)-100 troy oz.; $ per troy oz. 1291.50 1294.50 1289.30 1293.30 7.50 Oct Dec 1294.60 1299.80 1291.80 1296.50 7.60 Feb'18 1298.60 1303.50 1296.40 1300.80 7.70 April 1305.10 1307.40 1301.80 1304.90 7.70 June 1308.10 1311.10 1304.50 1308.90 7.80 Dec 1319.30 1323.80 1317.20 1321.00 7.80 Palladium (NYM) - 50 troy oz.; $ per troy oz. 959.70 984.75 955.55 973.70 14.75 Dec March'18 953.95 974.20 951.05 963.15 10.30 Platinum (NYM)-50 troy oz.; $ per troy oz. 932.20 932.20 932.20 939.10 8.70 Oct Jan'18 935.80 943.10 935.70 941.80 8.60 Silver (CMX)-5,000 troy oz.; $ per troy oz. 17.205 17.220 17.205 17.211 0.130 Oct Dec 17.190 17.290 17.135 17.266 0.133 Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. 51.00 51.13 50.15 50.60 –0.70 Nov Dec 51.29 51.42 50.48 50.93 –0.67 Jan'18 51.54 51.62 50.71 51.15 –0.65 March 51.81 51.86 51.03 51.47 –0.58 June 51.55 51.91 51.18 51.58 –0.48 Dec 51.49 51.54 50.77 51.24 –0.41 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. 1.7783 1.7823 1.7489 1.7655 –.0206 Nov Dec 1.7755 1.7810 1.7494 1.7651 –.0200 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. 1.6083 1.6120 1.5697 1.5832 –.0260 Nov Dec 1.5915 1.5915 1.5520 1.5645 –.0240 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. 2.906 3.008 2.895 2.989 .100 Nov Dec 3.081 3.165 3.068 3.144 .078 Jan'18 3.196 3.275 3.185 3.251 .070 Feb 3.206 3.281 3.193 3.259 .068 March 3.166 3.237 3.155 3.219 .065 April 2.926 2.965 2.918 2.954 .031 WSJ.com/commodities .12 Nov30 /Nov17 Fed Premier Intemediate Federated Premier FPT FMN 3.9 5.0 .045 .061 CVLY 1.7 5.00% M M Nov01 /Oct23 Nov01 /Oct23 Stocks Codorus Valley Bancorp Dec12 /Oct24 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO: spin-off. 7.650 March 15, ’42 9.750 May 1, ’23 7.700 Feb. 15, ’27 6.000 Aug. 1, ’19 CenturyLink Fresh Market Rite Aid Cenveo CTL TFM RAD CVO Staples Navient Algeco Scotsman Global Finance Cleveland–Cliffs SPLS 8.500 NAVI 7.250 ALGSCO 10.750 CLF 5.750 Sept. 15, ’25 Sept. 25, ’23 Oct. 15, ’19 March 1, ’25 91.500 61.250 79.400 75.250 92.375 106.000 76.125 97.438 –2.25 –2.25 –2.10 –2.00 –1.63 –1.55 –1.38 –1.31 *Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread. Note: Data are for the most active issue of bonds with maturities of two years or more Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | B9 BIGGEST 1,000 STOCKS How to Read the Stock Tables The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed securities. Prices are composite quotations that include primary market trades as well as trades reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock Exchange, ISE and BATS. The list comprises the 1,000 largest companies based on market capitalization. Underlined quotations are those stocks with large changes in volume compared with the issue’s average trading volume. Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous closing price was $2 or higher. Footnotes: s-New 52-week high. t-New 52-week low. dd-Indicates loss in the most recent four quarters. FD-First day of trading. h-Does not meet continued listing standards lf-Late filing q-Temporary exemption from Nasdaq requirements. t-NYSE bankruptcy v-Trading halted on primary market. vj-In bankruptcy or receivership or being reorganized under the Bankruptcy Code, or securities assumed by such companies. Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and changes in the closing prices from 4 p.m. the previous day. Thursday, October 12, 2017 Stock Stock Net Sym Close Chg NYSE s s s t s s s s s s s s s s s s s s s s s s s ABB ABB 25.04 -0.13 AES AES 11.22 -0.05 Aflac AFL 83.94 0.06 AGCO AGCO 74.65 -0.07 AT&T T 35.86 -2.33 AbbottLabs ABT 54.71 0.54 AbbVie ABBV 91.42 -0.32 Accenture ACN 139.20 2.29 AcuityBrands AYI 165.44 0.38 Adient ADNT 84.25 -0.24 AdvanceAuto AAP 86.56 -2.84 AdvSemiEngg ASX 6.38 0.04 Aegon AEG 5.67 -0.01 AerCap AER 52.06 0.06 Aetna AET 154.49 -1.81 AffiliatedMgrs AMG 193.76 -0.80 AgilentTechs A 67.54 0.92 AgnicoEagle AEM 46.35 0.10 Agrium AGU 106.11 -0.39 AirProducts APD 153.34 0.41 AlaskaAir ALK 80.40 -1.12 Albemarle ALB 137.30 -0.12 Alcoa AA 47.53 0.59 AlexandriaRealEst ARE 123.62 1.11 Alibaba BABA 180.53 -4.16 Alleghany Y 546.00 0.52 Allegion ALLE 89.56 1.41 Allergan AGN 204.08 -2.53 AllianceData ADS 220.14 -4.66 AllianceBernstein AB 25.20 -0.05 AlliantEnergy LNT 43.01 0.35 Allstate ALL 92.54 -0.55 AllyFinancial ALLY 23.96 -0.39 AlticeUSA ATUS 25.15 -0.71 Altria MO 65.35 0.48 AlumofChina ACH 22.27 0.46 Ambev ABEV 6.79 ... Ameren AEE 60.34 0.56 AmericaMovil AMX 17.86 0.32 AmericaMovil A AMOV 17.61 0.28 AmCampus ACC 44.96 -0.16 AEP AEP 73.34 0.58 AmericanExpress AXP 91.61 -0.35 AmericanFin AFG 104.50 -0.01 AIG AIG 62.55 0.71 AmerTowerREIT AMT 140.03 2.10 AmerWaterWorks AWK 85.10 0.66 Amerigas APU 44.94 -0.02 Ameriprise AMP 152.58 0.75 AmerisourceBrgn ABC 80.80 0.48 Ametek AME 67.11 0.14 Amphenol APH 87.77 0.99 AnadarkoPetrol APC 47.73 -0.66 Andeavor ANDV 105.68 -0.74 AB InBev BUD 124.62 0.44 AnnalyCap NLY 12.17 0.11 AnteroMidstream AM 31.39 -0.13 AnteroResources AR 20.44 0.23 Anthem ANTM 189.74 -0.15 Aon AON 149.24 1.47 Apache APA 41.41 -0.55 ApartmtInv AIV 45.24 0.27 ApolloGlobalMgmt APO 30.84 -0.07 AquaAmerica WTR 34.90 0.20 Aramark ARMK 42.17 0.20 ArcelorMittal MT 27.08 0.61 ArcherDaniels ADM 43.44 0.15 Arconic ARNC 27.56 0.21 AristaNetworks ANET 191.21 -1.74 ArrowElec ARW 83.35 0.48 AstraZeneca AZN 34.53 -0.06 Athene ATH 54.64 -0.11 AtmosEnergy ATO 86.79 0.59 Autohome ATHM 58.39 -3.43 Autoliv ALV 126.28 -0.75 AutoZone AZO 589.75 1.19 Avalonbay AVB 180.96 0.98 Avangrid AGR 48.39 0.14 AveryDennison AVY 100.80 -0.41 AxaltaCoating AXTA 28.29 -0.28 BB&T BBT 46.85 -0.50 BCE BCE 47.07 -0.16 BHPBilliton BHP 41.03 0.11 BHPBilliton BBL 36.30 0.14 BP BP 39.01 0.16 BRF BRFS 14.72 -0.01 BT Group BT 18.74 0.18 BWX Tech BWXT 58.96 -0.01 BakerHughes BHGE 33.92 -0.47 Ball BLL 42.25 -0.05 BancoBilbaoViz BBVA 8.69 -0.04 BancodeChile BCH 94.15 -0.63 BancoMacro BMA 123.99 0.76 BcoSantChile BSAC 31.17 0.22 BancoSantander SAN 6.64 -0.06 BanColombia CIB 44.60 0.24 BankofAmerica BAC 25.45 -0.38 BankofMontreal BMO 77.92 -0.17 BankNY Mellon BK 54.74 -0.14 BkNovaScotia BNS 64.40 -0.55 Barclays BCS 10.15 0.06 Bard CR BCR 322.30 0.72 BarrickGold ABX 16.68 -0.08 BaxterIntl BAX 62.53 0.52 BectonDickinson BDX 198.83 1.32 Berkley WRB 67.24 -0.05 BerkHathwy A BRK.A 279383-1702.00 BerkHathwy B BRK.B 186.30 -1.16 BerryGlobal BERY 58.99 0.03 BestBuy BBY 55.13 -0.34 Bio-RadLab A BIO 223.89 0.12 Bio-RadLab B BIO.B 223.96 -4.05 BlackKnight BKI 46.65 2.10 BlackRock BLK 480.59 6.66 BlackstoneGroup BX 33.00 -0.19 BoardwalkPipe BWP 15.10 0.05 Boeing BA 261.91 0.47 BorgWarner BWA 50.92 -1.09 BostonProperties BXP 128.00 -0.28 BostonScientific BSX 29.43 0.16 Braskem BAK 28.80 0.03 Bristol-Myers BMY 65.35 0.24 BritishAmTob BTI 64.46 -0.34 BrixmorProp BRX 18.88 0.08 BroadridgeFinl BR 82.21 0.21 BrookfieldMgt BAM 42.38 -0.17 BrookfieldInfr BIP 42.98 -0.23 Brown&Brown BRO 49.18 0.29 Brown-Forman A BF.A 56.09 -0.16 Brown-Forman B BF.B 55.18 -0.12 BuckeyePtrs BPL 56.72 -1.10 Bunge BG 67.85 0.11 BurlingtonStores BURL 90.33 -2.24 CBD Pao CBD 25.10 -0.29 CBRE Group CBG 39.28 0.05 CBS B CBS 56.51 -0.59 CF Industries CF 35.84 0.93 CGI Group GIB 52.79 -0.03 CIT Group CIT 49.60 0.16 CMS Energy CMS 47.72 0.37 CNA Fin CNA 50.27 -0.05 CNOOC CEO 127.13 -3.37 CPFLEnergia CPL 17.19 -0.03 CRH CRH 36.19 -0.25 s s s s s s s s s s s s s Net Sym Close Chg CVS Health CVS 73.78 CabotOil COG 26.00 CamdenProperty CPT 94.15 CampbellSoup CPB 45.99 CIBC CM 89.72 CanNtlRlwy CNI 80.88 CanNaturalRes CNQ 32.60 CanPacRlwy CP 168.95 Canon CAJ 35.39 CapitalOne COF 84.59 CardinalHealth CAH 66.33 Carlisle CSL 99.15 CarMax KMX 75.70 Carnival CCL 66.86 Carnival CUK 66.83 Caterpillar CAT 129.99 Celanese A CE 107.03 Cemex CX 7.99 CenovusEnergy CVE 9.57 Centene CNC 93.68 CenterPointEner CNP 29.72 CentraisElBras EBR 6.49 CenturyLink CTL 20.35 Chemours CC 55.35 Chevron CVX 119.14 ChinaEastrnAir CEA 24.96 ChinaLifeIns LFC 15.43 ChinaMobile CHL 50.39 ChinaPetrol SNP 74.34 ChinaSoAirlines ZNH 34.95 ChinaTelecom CHA 52.39 ChinaUnicom CHU 14.30 Chipotle CMG 314.17 Chubb CB 146.58 ChunghwaTelecom CHT 34.11 Church&Dwight CHD 47.72 Cigna CI 186.96 CimarexEnergy XEC 114.56 Citigroup C 72.37 CitizensFin CFG 37.16 Clorox CLX 130.73 Coach COH 39.42 Coca-Cola KO 46.11 Coca-Cola Euro CCE 41.83 Coca-Cola Femsa KOF 73.19 Colgate-Palmolive CL 75.16 ColonyNorthStar CLNS 12.42 Comerica CMA 75.83 SABESP SBS 10.50 ConagraBrands CAG 34.59 ConchoRscs CXO 135.00 ConocoPhillips COP 49.81 ConEd ED 83.53 ConstBrands A STZ 207.40 ConstBrands B STZ.B 207.54 ContinentalRscs CLR 37.07 Cooper COO 237.67 Corning GLW 29.94 Coty COTY 16.76 Credicorp BAP 205.00 CreditSuisse CS 15.72 CrestwoodEquity CEQP 24.40 CrownCastle CCI 103.10 CrownHoldings CCK 60.73 Cullen/Frost CFR 96.06 Cummins CMI 171.91 DTE Energy DTE 110.67 DXC Tech DXC 91.20 Danaher DHR 87.03 Darden DRI 79.21 DaVita DVA 54.40 Deere DE 128.50 DellTechnologies DVMT 80.29 DelphiAutomotive DLPH 98.10 DeltaAir DAL 53.11 DeutscheBank DB 16.70 DevonEnergy DVN 35.61 Diageo DEO 136.06 DigitalRealty DLR 122.75 DiscoverFinSvcs DFS 63.81 Disney DIS 96.93 DolbyLab DLB 58.95 DollarGeneral DG 82.18 DominionEner D 78.63 Domino's DPZ 201.03 Donaldson DCI 46.45 DouglasEmmett DEI 40.45 Dover DOV 94.07 DowDuPont DWDP 71.40 DrPepperSnap DPS 89.06 DrReddy'sLab RDY 35.86 DukeEnergy DUK 86.97 DukeRealty DRE 29.05 ENI E 32.96 EOG Rscs EOG 96.65 EQT EQT 63.49 EQT Midstream EQM 76.21 EastmanChem EMN 88.36 Eaton ETN 78.72 EatonVance EV 50.57 Ecolab ECL 133.91 Ecopetrol EC 9.55 EdisonInt EIX 79.66 EdwardsLife EW 110.20 EmersonElectric EMR 63.92 EnbridgeEnPtrs EEP 15.79 Enbridge ENB 41.49 Encana ECA 11.43 EnelAmericas ENIA 10.65 EnelChile ENIC 6.13 EnelGenChile EOCC 26.79 EnergyTrfrEquity ETE 18.20 EnergyTransfer ETP 18.63 EnLinkMidPtrs ENLK 16.78 Entergy ETR 81.80 EnterpriseProd EPD 26.66 Equifax EFX 108.81 EquityLife ELS 87.83 EquityResdntl EQR 67.23 EssexProp ESS 261.10 EsteeLauder EL 109.49 EverestRe RE 226.81 EversourceEner ES 61.67 Exelon EXC 38.94 ExtraSpaceSt EXR 81.61 ExxonMobil XOM 82.43 FMC FMC 92.93 FactSet FDS 178.19 FederalRealty FRT 128.51 FedEx FDX 225.06 Ferrari RACE 116.09 FiatChrysler FCAU 17.60 FibriaCelulose FBR 15.90 FidelityNatlFin FNF 34.15 FNFV Group FNFV 18.10 FidelityNtlInfo FIS 94.61 58.com WUBA 65.33 FirstData FDC 17.54 FirstRepBank FRC 102.17 FirstEnergy FE 32.45 FleetCorTech FLT 160.35 Flowserve FLS 44.07 Fluor FLR 42.61 FomentoEconMex FMX 94.83 FordMotor F 12.12 ForestCIty A FCE.A 25.61 Fortis FTS 36.64 Fortive FTV 72.89 -0.12 0.49 0.76 0.60 -0.38 -0.17 -0.71 1.55 0.13 -2.16 0.51 -1.15 -0.36 -0.34 -0.31 1.39 0.47 -0.19 -0.21 -2.37 0.41 -0.10 0.08 0.23 -0.19 -0.27 0.09 0.04 -0.54 -0.33 -0.35 -0.04 2.68 -0.79 0.13 0.32 0.01 -0.94 -2.57 -0.29 0.19 0.55 0.01 -0.04 -0.22 0.43 ... -0.74 -0.05 0.80 -0.67 0.21 0.69 -0.34 -1.11 -0.57 0.15 0.05 -0.09 1.42 -0.09 -0.15 0.89 -0.17 -0.03 -0.42 0.97 3.55 0.07 -0.13 -0.16 0.73 0.93 -1.15 0.04 -0.22 -0.47 0.24 2.13 -1.03 -1.62 0.83 -0.36 0.62 -8.21 0.39 0.08 0.25 -0.22 0.26 -0.27 0.58 0.12 -0.14 -0.28 0.39 -0.13 0.21 0.19 0.23 1.36 0.02 1.24 -0.27 0.49 -0.39 -0.22 -0.11 0.03 0.01 -0.31 -0.04 -0.12 -0.11 1.45 -0.14 -1.69 0.56 0.76 2.80 -0.24 4.30 0.37 0.48 1.04 -0.17 0.50 0.06 0.69 2.38 -0.43 -0.36 0.01 -0.05 -0.10 -0.03 0.01 -0.29 -1.24 0.62 -1.22 0.35 ... 0.02 -0.26 0.03 0.13 0.54 Stock s t s t s s s s s s s s Net Sym Close Chg FortBrandsHome FBHS 66.25 0.19 Franco-Nevada FNV 80.35 0.61 FranklinRscs BEN 44.80 -0.13 Freeport-McMoRan FCX 14.51 0.08 FreseniusMed FMS 47.99 -0.27 GGP GGP 21.46 ... Gallagher AJG 62.04 0.32 Gap GPS 27.21 -1.21 Gartner IT 123.58 -0.41 Gazit-Globe GZT 9.70 ... GeneralDynamics GD 213.72 0.89 GeneralElec GE 23.05 -0.02 GeneralMills GIS 51.27 0.40 GeneralMotors GM 44.89 -0.58 GenuineParts GPC 95.86 0.36 Gerdau GGB 3.44 0.03 Gildan GIL 31.01 -0.09 GlaxoSmithKline GSK 41.02 0.16 GlobalPayments GPN 99.06 -0.01 GoDaddy GDDY 44.13 0.21 Goldcorp GG 13.29 -0.07 GoldmanSachs GS 239.80 -2.60 Graco GGG 125.07 0.76 Grainger GWW 177.55 5.05 GreatPlainsEner GXP 31.94 0.22 GpoAvalAcciones AVAL 8.97 0.01 GpFinSantandMex BSMX 9.50 0.05 GrupoTelevisa TV 23.17 -0.41 GuidewireSoftware GWRE 79.64 0.26 HCA Healthcare HCA 74.22 -1.31 HCP HCP 26.43 -0.03 HDFC Bank HDB 94.72 1.32 HP HPQ 20.40 -0.01 HSBC HSBC 49.23 -0.27 Halliburton HAL 44.76 -0.75 Hanesbrands HBI 23.68 0.02 HarleyDavidson HOG 46.46 0.19 Harris HRS 136.62 0.62 HartfordFinl HIG 55.86 -0.01 HealthcareAmer HTA 29.98 0.24 Heico HEI 88.12 0.24 Heico A HEI.A 74.05 -0.60 Herbalife HLF 77.24 -0.06 Hershey HSY 109.97 0.45 Hess HES 44.20 -0.13 HewlettPackard HPE 14.80 -0.14 Hilton HLT 70.38 0.16 HollyFrontier HFC 36.32 -0.20 HomeDepot HD 164.59 -0.66 HondaMotor HMC 30.18 -0.13 Honeywell HON 143.19 0.47 HormelFoods HRL 31.80 0.08 DR Horton DHI 41.28 -0.20 HostHotels HST 19.40 0.73 HuanengPower HNP 25.50 -0.04 Hubbell HUBB 116.79 1.76 Humana HUM 241.44 1.06 HuntingtonIngalls HII 235.44 1.51 Huntsman HUN 28.22 0.84 HyattHotels H 61.50 -0.21 ICICI Bank IBN 8.29 0.03 ING Groep ING 18.52 -0.15 Invesco IVZ 36.29 ... IDEX IEX 124.53 1.30 IllinoisToolWks ITW 153.23 1.79 Infosys INFY 14.61 0.03 Ingersoll-Rand IR 91.38 -0.05 Ingredion INGR 123.36 1.29 ICE ICE 69.91 -0.18 InterContinentl IHG 54.41 0.16 IBM IBM 147.03 -0.59 IntlFlavors IFF 147.59 -0.14 IntlPaper IP 57.23 -0.16 Interpublic IPG 20.35 -0.20 InvitationHomes INVH 22.61 -0.03 IronMountain IRM 39.81 0.87 IsraelChemicals ICL 4.42 -0.02 ItauUnibanco ITUB 14.04 -0.14 JPMorganChase JPM 95.99 -0.85 JacobsEngineering JEC 58.52 0.66 JamesHardie JHX 13.69 -0.04 JanusHenderson JHG 35.19 0.25 J&J JNJ 136.83 0.18 JohnsonControls JCI 41.39 0.04 JonesLangLaSalle JLL 130.92 -0.32 JuniperNetworks JNPR 25.47 -1.39 KAR Auction KAR 47.53 -0.12 KB Fin KB 51.46 0.97 KKR KKR 20.03 -0.21 KT KT 14.43 0.01 KSCitySouthern KSU 105.46 0.57 Kellogg K 62.39 1.14 KeyCorp KEY 18.24 -0.20 KeysightTechs KEYS 42.53 0.16 KilroyRealty KRC 73.21 0.19 KimberlyClark KMB 117.56 -0.28 KimcoRealty KIM 19.28 -0.14 KinderMorgan KMI 18.88 -0.17 Knight-Swift KNX 40.65 0.56 Kohl's KSS 42.32 -0.90 KoninklijkePhil PHG 41.08 -0.11 KoreaElcPwr KEP 16.60 -0.04 Kroger KR 21.00 0.22 Kyocera KYO 65.07 0.01 LATAMAirlines LTM 13.79 -0.14 L Brands LB 41.43 -0.42 LG Display LPL 12.61 -0.73 LINE LN 36.76 0.11 L3 Tech LLL 188.82 1.16 LabCpAm LH 150.26 0.98 LambWeston LW 49.70 0.33 LasVegasSands LVS 61.68 -1.64 Lazard LAZ 44.96 0.15 Lear LEA 172.31 -1.10 Leggett&Platt LEG 47.89 -0.45 Leidos LDOS 62.32 0.18 Lennar A LEN 56.05 -0.53 Lennar B LEN.B 47.23 -0.65 LennoxIntl LII 181.08 0.79 LeucadiaNatl LUK 25.33 0.06 Level3Comm LVLT 55.40 0.01 LibertyProperty LPT 42.05 0.08 EliLilly LLY 86.43 0.37 LincolnNational LNC 74.85 -0.43 LionsGate A LGF.A 30.08 -0.24 LionsGate B LGF.B 29.22 -0.28 LiveNationEnt LYV 42.19 -0.60 LloydsBanking LYG 3.57 -0.04 LockheedMartin LMT 321.15 2.56 Loews L 48.86 0.16 Lowe's LOW 81.57 0.36 LyondellBasell LYB 97.53 0.27 M&T Bank MTB 162.83 -0.32 MGM Resorts MGM 30.07 -0.83 MPLX MPLX 34.73 -0.14 MSCI MSCI 122.73 0.85 Macerich MAC 57.55 -0.28 MacquarieInfr MIC 72.38 0.27 Macy's M 20.24 -0.23 MagellanMid MMP 70.39 -0.42 MagnaIntl MGA 54.40 -0.41 Manpower MAN 121.46 0.75 ManulifeFin MFC 20.64 -0.16 MarathonOil MRO 13.62 -0.06 MarathonPetrol MPC 56.55 0.33 Markel MKL 1069.79 -24.10 Marsh&McLennan MMC 83.57 -0.01 MartinMarietta MLM 205.98 2.25 Mutual Funds | WSJ.com/fundresearch Explanatory Notes e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 12b-1. rRedemption charge may apply. s-Stock split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to incomplete price, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. A American Century Inv Ultra 43.82 American Funds Cl A 31.37 AmcpA p 41.00 AMutlA p 27.20 BalA p 12.98 BondA p CapIBA p 63.20 51.96 CapWGrA 56.73 EupacA p 62.55 FdInvA p 50.33 GwthA p HI TrA p 10.48 ICAA p 40.82 23.48 IncoA p 44.49 N PerA p 46.65 NEcoA p 66.03 NwWrldA SmCpA p 56.33 TxExA p 13.01 44.95 WshA p B Baird Funds -0.05 25.6 AggBdInst -0.04 -0.09 -0.03 +0.02 ... +0.05 +0.13 -0.10 -0.07 -0.01 -0.06 +0.03 +0.07 -0.03 +0.12 +0.08 +0.01 -0.11 16.9 12.9 11.3 3.5 12.4 20.4 28.4 17.1 19.7 6.5 14.0 10.7 25.9 29.8 28.3 22.5 4.6 14.0 10.92 11.27 BlackRock Funds A 20.25 GlblAlloc p BlackRock Funds Inst 22.80 EqtyDivd 20.37 GlblAlloc 7.86 HiYldBd StratIncOpptyIns 9.97 Bridge Builder Trust 10.21 CoreBond CorBdInst D Del Invest Instl Value 21.02 Dimensional Fds 11.03 5GlbFxdInc 30.12 EmgMktVa EmMktCorEq 22.36 14.16 IntlCoreEq +0.01 +0.01 3.9 4.3 ... 11.4 IntlVal IntSmCo IntSmVa US CoreEq1 US CoreEq2 US Small US SmCpVal US TgdVal USLgVa 0.19 -0.11 0.73 0.58 0.76 0.73 -0.32 0.05 -0.12 0.37 0.65 0.13 0.73 -0.10 ... 0.07 1.18 0.21 0.11 1.38 -0.59 0.13 0.54 0.21 0.06 4.96 -0.23 -0.60 0.04 -0.81 -0.03 -0.39 -0.45 0.31 0.83 0.15 -0.20 0.15 -0.50 -0.05 0.04 -0.33 2.20 3.49 -0.40 -0.32 0.08 -1.40 0.38 0.03 -0.17 -0.07 -0.21 0.01 0.01 -0.05 -0.10 0.12 1.42 1.75 -0.34 -4.65 -0.53 -1.22 0.27 0.99 0.45 -1.41 -1.20 -0.76 0.52 2.52 -0.44 0.09 -0.32 -0.06 0.94 0.31 0.35 -0.87 -0.09 -0.05 -0.10 0.27 0.66 0.26 0.91 -2.77 -0.34 -0.36 -0.63 0.23 -0.06 0.69 0.03 0.69 -0.50 0.58 -0.66 -0.01 0.63 2.13 0.12 0.07 0.69 0.10 Net YTD NAV Chg % Ret 19.73 21.51 23.43 21.78 20.70 36.36 38.98 25.01 38.41 -0.05 +0.01 -0.03 -0.04 -0.05 -0.06 -0.10 -0.07 -0.29 -0.20 11.7 ... 11.6 Dodge & Cox ... 7.5 108.78 -0.41 -0.01 4.1 Balanced GblStock 14.01 -0.07 13.83 ... Income +0.01 3.8 46.87 -0.17 Intl Stk Stock 200.66 -1.20 DoubleLine Funds 10.71 +0.01 -0.02 8.1 TotRetBdI 10.70 ... TotRetBdN +0.01 2.3 +0.10 27.5 +0.08 30.7 Edgewood Growth Instituti ... 23.6 EdgewoodGrInst 29.51 +0.05 20.5 25.7 23.9 14.3 12.5 8.2 4.7 5.0 11.0 8.7 17.6 4.0 23.0 12.0 3.7 3.4 E 32.9 Stock Net Sym Close Chg s RELX RELX 22.82 RPM RPM 51.85 RalphLauren RL 85.26 RaymondJames RJF 86.33 s Raytheon RTN 188.91 RealtyIncome O 56.75 s RedHat RHT 120.91 RegencyCtrs REG 64.04 RegionsFin RF 14.91 s ReinsuranceGrp RGA 142.59 RepublicServices RSG 63.67 ResMed RMD 77.59 s RestaurantBrands QSR 65.95 RiceEnergy RICE 27.73 RioTinto RIO 48.08 RobertHalf RHI 48.90 s Rockwell ROK 184.50 RockwellCollins COL 134.94 RogersComm B RCI 52.98 s Rollins ROL 47.59 RoperTech ROP 252.05 s RoyalBkCanada RY 79.09 RoyalBkScotland RBS 7.31 RoyalCaribbean RCL 125.00 RoyalDutchA RDS.A 60.73 RoyalDutchB RDS.B 62.40 s SAP SAP 112.65 s S&P Global SPGI 161.12 SINOPECShanghai SHI 60.86 SK Telecom SKM 26.08 SLGreenRealty SLG 104.83 Salesforce.com CRM 96.74 Sanofi SNY 49.74 Sasol SSL 28.72 Scana SCG 49.60 Schlumberger SLB 67.29 SchwabC SCHW 45.03 ScottsMiracleGro SMG 98.95 SealedAir SEE 44.14 SemicondctrMfg SMI 6.00 SempraEnergy SRE 115.96 s SensataTech ST 48.75 ServiceCorp SCI 34.22 ServiceMaster SERV 47.21 ServiceNow NOW 121.97 ShawComm B SJR 22.04 s SherwinWilliams SHW 383.57 ShinhanFin SHG 44.72 Shopify SHOP 94.36 SimonProperty SPG 164.54 s SmithAO AOS 61.45 Smith&Nephew SNN 38.26 Smucker SJM 106.01 Snap SNAP 16.55 SnapOn SNA 151.61 SOQUIMICH SQM 57.99 Sony SNE 36.32 Southern SO 50.74 SoCopper SCCO 42.46 SouthwestAirlines LUV 58.81 SpectraEnerPtrs SEP 44.95 SpectrumBrands SPB 105.11 SpiritAeroSys SPR 79.19 Sprint S 7.14 s Square SQ 32.81 s StanleyBlackDck SWK 158.28 StateStreet STT 98.63 Statoil STO 20.20 Steris STE 90.60 s STMicroelec STM 19.87 Stryker SYK 146.56 SumitomoMits SMFG 7.72 SunCommunities SUI 88.72 SunLifeFinancial SLF 39.47 SuncorEnergy SU 33.76 SunTrustBanks STI 59.67 SynchronyFin SYF 30.64 Syngenta SYT 92.15 SynovusFin SNV 46.86 Sysco SYY 54.28 TAL Education TAL 34.78 s TE Connectivity TEL 87.44 Telus TU 35.94 Ternium TX 31.15 TIM Part TSU 18.79 TJX TJX 71.78 TableauSoftware DATA 77.22 s TaiwanSemi TSM 40.44 TargaResources TRGP 47.46 Target TGT 60.19 TataMotors TTM 32.11 TechnipFMC FTI 26.62 TeckRscsB TECK 22.85 TelecomArgentina TEO 31.36 TelecomItalia TI 8.99 TelecomItalia A TI.A 7.13 s TeledyneTech TDY 164.99 Teleflex TFX 240.03 TelefonicaBras VIV 16.15 Telefonica TEF 10.81 TelekmIndonesia TLK 32.44 Tenaris TS 27.04 s Teradyne TER 38.65 t TevaPharm TEVA 15.15 Textron TXT 53.55 ThermoFisherSci TMO 193.39 0.13 0.34 0.06 -0.06 1.69 0.08 1.54 0.13 -0.13 0.55 0.35 1.04 0.22 0.28 0.33 0.16 0.75 0.34 -0.09 0.11 2.14 -0.28 -0.04 -0.01 -0.50 -0.41 -0.01 2.12 -0.38 0.18 -0.07 0.73 0.01 -0.09 0.02 -0.45 -0.28 0.67 0.13 -0.21 1.02 0.26 -0.03 -0.14 1.29 -0.84 0.53 0.18 -0.66 -0.54 0.80 0.68 1.74 0.57 0.67 0.18 -0.30 0.26 0.73 0.26 -0.19 1.17 0.46 -0.05 0.81 1.79 -0.66 -0.10 0.60 -0.15 0.15 -0.05 0.43 -0.42 -0.76 -0.50 -0.78 0.05 -0.25 0.50 -0.01 0.69 -0.19 0.33 0.06 -0.77 0.28 0.09 -0.32 1.04 0.33 -0.65 0.07 0.28 -0.16 -0.17 2.33 0.14 -0.10 -0.07 0.07 -0.21 0.04 -0.61 -0.37 -0.07 Net Sym Close Chg Stock ThomsonReuters TRI 46.43 ThorIndustries THO 128.23 s 3M MMM 217.59 Tiffany TIF 92.08 TimeWarner TWX 101.45 s Toll Bros TOL 42.66 s Torchmark TMK 81.53 Toro TTC 62.63 TorontoDomBk TD 56.95 Total TOT 54.27 TotalSystem TSS 67.81 ToyotaMotor TM 123.19 TransCanada TRP 50.09 TransDigm TDG 266.16 TransUnion TRU 49.59 Travelers TRV 125.95 TurkcellIletism TKC 9.20 TurquoiseHill TRQ 3.29 Twitter TWTR 18.45 TylerTech TYL 178.94 TysonFoods TSN 70.80 UBS Group UBS 17.18 UDR UDR 38.93 UGI UGI 47.43 US Foods USFD 27.00 UltraparPart UGP 24.37 UnderArmour A UAA 16.55 UnderArmour C UA 15.22 Unilever UN 60.79 Unilever UL 59.35 UnionPacific UNP 113.69 UnitedContinental UAL 66.64 UnitedMicro UMC 2.60 UPS B UPS 119.57 s UnitedRentals URI 144.01 US Bancorp USB 53.99 US Steel X 25.56 UnitedTech UTX 118.82 UnitedHealth UNH 192.92 UniversalHealthB UHS 105.92 UnumGroup UNM 52.01 VEREIT VER 8.38 VF VFC 64.44 s Visa V 108.11 VailResorts MTN 216.97 Vale VALE 9.86 ValeroEnergy VLO 77.91 Vantiv VNTV 70.36 VarianMed VAR 102.27 Vedanta VEDL 19.69 VeevaSystems VEEV 59.52 Ventas VTR 63.08 Verizon VZ 48.35 VistraEnergy VST 19.08 s VMware VMW 113.16 VornadoRealty VNO 79.57 VoyaFinancial VOYA 39.92 VulcanMaterials VMC 117.79 WABCO WBC 148.60 WEC Energy WEC 65.57 W.P.Carey WPC 69.24 Wabtec WAB 75.58 s Wal-Mart WMT 86.10 WasteConnections WCN 70.17 WasteMgt WM 76.92 Waters WAT 185.80 Watsco WSO 160.79 Wayfair W 69.18 WellCareHealth WCG 168.31 WellsFargo WFC 55.21 Welltower HCN 68.01 WestPharmSvcs WST 95.06 WestarEnergy WR 52.28 WesternGasEquity WGP 40.11 WesternGasPtrs WES 51.90 WesternUnion WU 19.74 WestlakeChem WLK 84.49 WestpacBanking WBK 25.56 WestRock WRK 58.71 Weyerhaeuser WY 34.59 WheatonPrecMetals WPM 20.24 Whirlpool WHR 177.10 Williams WMB 30.17 WilliamsPartners WPZ 39.90 Wipro WIT 5.52 WooriBank WF 47.48 s Wyndham WYN 109.67 s XPO Logistics XPO 68.12 XcelEnergy XEL 48.76 Xerox XRX 32.71 Xylem XYL 64.88 YPF YPF 22.50 YumBrands YUM 76.41 YumChina YUMC 42.94 ZTO Express ZTO 15.56 ZayoGroup ZAYO 35.33 ZimmerBiomet ZBH 120.63 Zoetis ZTS 64.91 0.11 0.46 1.08 -1.19 -1.93 -0.44 0.43 0.28 -0.12 -0.37 0.24 -0.37 -0.09 1.60 -0.11 0.34 0.23 0.03 0.72 1.41 0.76 0.02 0.32 0.39 -0.06 0.10 0.03 0.07 1.04 1.02 0.64 -0.76 0.02 0.65 1.85 -0.27 0.36 1.07 -2.34 -1.83 -0.22 0.02 0.09 -0.33 0.62 0.07 -0.01 -0.44 1.36 0.25 2.10 0.03 -0.51 0.07 1.13 0.21 -0.63 0.51 -1.24 0.84 0.56 0.45 0.37 0.31 -0.16 0.13 0.83 2.96 -2.25 -0.45 0.07 1.11 0.19 -0.54 -0.51 ... -0.01 0.20 0.14 0.20 0.12 0.19 0.01 0.15 0.02 0.63 0.70 -0.15 0.48 -0.03 0.57 -0.29 -0.23 0.55 0.48 0.68 1.99 0.63 AGNC Invt AGNC 21.56 0.06 Ansys ANSS 129.24 2.10 s ASML ASML 173.61 0.71 Abiomed ABMD 173.00 0.34 ActivisionBliz ATVI 62.05 0.69 AdobeSystems ADBE 153.61 -0.04 Largest 100 exchange-traded funds, latest session ETF Thursday, October 12, 2017 Closing Chg YTD Symbol Price (%) (%) AlerianMLPETF CnsmrDiscSelSector CnsStapleSelSector DBGoldDoubleLgETN DBGoldDoubleShrt EnSelectSectorSPDR FinSelSectorSPDR GuggS&P500EW HealthCareSelSect IndSelSectorSPDR iShIntermCredBd iSh1-3YCreditBond iSh3-7YTreasuryBd iShCoreMSCIEAFEETF iShCoreMSCIEmgMk iShCoreMSCITotInt iShCoreS&P500ETF iShCoreS&PMdCp iShCoreS&PSmCpETF iShS&PTotlUSStkMkt iShCoreUSAggBd iShSelectDividend iShEdgeMSCIMinEAFE iShEdgeMSCIMinUSA iShGoldTr iShiBoxx$InvGrCpBd iShiBoxx$HYCpBd iShJPMUSDEmgBd iShMBSETF iShMSCIACWIETF iShMSCIBrazilCap iShMSCI EAFE iShMSCIEAFESC iShMSCIEmgMarkets iShMSCIEurozoneETF iShMSCIJapanETF iShNasdaqBiotech iShNatlMuniBdETF iShRussell1000Gwth iShRussell1000ETF iShRussell1000Val iShRussell2000Gwth iShRussell2000ETF iShRussell2000Val iShRussell3000ETF iShRussellMid-Cap iShRussellMCValue iShS&PMC400Growth iShS&P500Growth AMLP XLY XLP DGP DZZ XLE XLF RSP XLV XLI CIU CSJ IEI IEFA IEMG IXUS IVV IJH IJR ITOT AGG DVY EFAV USMV IAU LQD HYG EMB MBB ACWI EWZ EFA SCZ EEM EZU EWJ IBB MUB IWF IWB IWD IWO IWM IWN IWV IWR IWS IJK IVW 11.30 90.78 54.47 25.35 5.45 68.18 26.12 96.44 82.63 72.19 110.03 105.21 123.39 64.89 55.67 61.94 256.34 181.49 74.62 58.43 109.59 95.08 72.13 50.99 12.43 121.10 88.29 116.09 107.07 69.83 42.76 69.21 62.63 46.24 43.61 56.68 337.13 110.94 127.41 141.81 119.55 180.97 149.64 125.15 151.23 199.76 85.78 206.01 145.91 Fidelity 500IdxInst 500IdxInstPrem 500IdxPrem ExtMktIdxPrem r IntlIdxPrem r TMktIdxF r TMktIdxPrem USBdIdxInstPrem USBdIdxPrem 6.49 -0.01 12.8 89.25 89.25 89.25 62.56 43.07 74.16 74.15 11.64 11.64 Fidelity Advisor I 32.74 NwInsghtI Fidelity Freedom 16.64 FF2020 14.39 FF2025 18.01 FF2030 Fidelity Invest 24.80 Balanc 85.56 BluCh Contra 123.73 123.72 ContraK CpInc r 10.28 41.32 DivIntl GroCo 178.76 178.71 GrowCoK InvGB 7.95 11.32 InvGrBd LowP r 52.04 LowPriStkK r 52.00 MagIn 103.70 106.31 OTC 23.38 Puritn SrsEmrgMkt 21.27 SrsGroCoRetail 17.55 16.19 SrsIntlGrw 10.82 SrsIntlVal 10.72 TotalBond Fidelity Selects Biotech r 233.45 First Eagle Funds GlbA 60.09 FPA Funds IVE PFF TIP SHY IEF TLT IWP MINT QQQ SPLV BKLN JNK GLD SCHF SCHB SCHX DIA MDY SPY SDY XLK XLU GDX VGT VBR VIG VEA VWO VGK VEU VUG VHT VYM BIV VCIT VV VO VOE VNQ VOO BSV VCSH VB BND BNDX VXUS VTI VT VTV HEDJ DXJ 108.80 38.51 113.97 84.34 106.50 124.95 115.18 101.77 147.77 46.56 23.22 37.16 122.89 33.87 61.70 60.86 228.33 330.94 254.64 92.65 60.21 54.53 23.72 155.82 128.88 95.99 43.93 44.78 58.79 53.52 134.94 153.87 82.34 84.62 87.95 116.97 148.61 106.41 84.57 233.88 79.72 80.05 142.85 81.88 54.60 55.62 131.26 71.79 100.93 65.14 55.36 Net YTD NAV Chg % Ret Fund -0.14 -0.14 -0.14 -0.04 +0.03 -0.11 -0.11 +0.01 +0.01 15.7 15.7 15.7 14.0 22.0 15.4 15.4 3.3 3.3 ... 22.6 ... 12.8 -0.01 13.7 -0.01 16.0 -0.05 -0.07 -0.08 -0.08 -0.02 +0.08 -0.17 -0.16 +0.01 +0.01 -0.06 -0.06 -0.12 +0.04 -0.03 +0.04 -0.02 ... -0.01 +0.01 13.5 29.6 26.5 26.6 10.2 24.1 30.7 30.8 3.7 4.0 13.6 13.6 20.2 33.4 14.5 35.5 31.4 26.5 18.1 3.9 –0.41 0.26 0.18 –0.01 0.09 0.43 0.20 0.02 –0.18 0.24 0.09 –0.08 0.08 –0.09 –0.13 –0.15 –0.12 0.02 –0.15 0.13 –0.25 0.52 –0.34 0.08 –0.09 0.44 ... ... –0.14 0.04 –0.03 –0.10 –0.13 ... –0.02 –0.17 0.13 0.03 0.64 –0.15 –0.03 0.01 0.04 0.09 0.15 –0.09 –0.12 –0.06 –0.23 0.05 –0.29 35.09 ... 8.9 Lord Abbett A NA ... ShtDurIncmA p FrankTemp/Frank Adv NA ... NA Lord Abbett F IncomeAdv NA ... ShtDurIncm FrankTemp/Franklin A CA TF A p NA ... NA NA ... NA Fed TF A p NA ... NA Metropolitan West IncomeA p 59.69 +0.14 14.4 TotRetBd RisDv A p 10.69 +0.01 FrankTemp/Franklin C TotRetBdI 10.68 +0.01 10.05 +0.01 Income C t NA ... NA TRBdPlan MFS Funds Class I FrankTemp/Temp A 40.74 -0.03 NA ... NA ValueI GlBond A p NA ... NA MFS Funds Instl Growth A p 25.47 +0.04 IntlEq FrankTemp/Temp Adv GlBondAdv p NA ... NA Mutual Series NA ... GlbDiscA GlbDiscz NA ... Harbor Funds 73.89 -0.08 30.4 CapApInst 70.45 -0.34 20.6 Oakmark Funds Invest IntlInst r EqtyInc r 33.71 -0.11 Harding Loevner 83.34 -0.40 IntlEq NA ... NA Oakmark 29.09 ... OakmrkInt Old Westbury Fds 14.84 ... LrgCpStr Invesco Funds A Oppenheimer Y 11.21 -0.06 7.3 EqIncA 42.25 +0.07 DevMktY 43.09 +0.01 IntGrowY 7.3 3.5 0.7 –0.1 1.6 4.9 18.3 0.4 24.7 12.0 –0.6 1.9 12.1 22.4 13.9 14.3 15.6 9.7 13.9 8.3 24.5 12.3 13.4 28.2 6.5 12.7 20.2 25.2 22.6 21.1 21.0 21.4 8.7 1.9 2.6 14.3 12.9 9.5 2.5 13.9 0.3 0.9 10.8 1.3 0.6 21.2 13.8 17.7 8.5 13.5 11.7 H 2.9 3.1 3.2 13.7 25.7 NA NA O I J -0.01 12.5 Parnassus Fds -0.01 15.9 PIMCO Fds Instl -0.02 11.4 AllAsset TotRt +0.02 9.5 PIMCO Funds A +0.01 3.5 PIMCO Funds D IncomeFd 43.46 NA 10.32 NA NA IncomeFd 3.5 PIMCO Funds Instl NA IncomeFd PIMCO Funds P -0.66 34.1 Lazard Instl IncomeP NA 19.70 +0.11 24.1 Price Funds EmgMktEq -0.08 10.7 Loomis Sayles Fds 95.12 BlChip 14.26 -0.01 7.3 CapApp LSBondI 29.56 L ... 15.7 s s s s s s NorthernTrust NTRS 93.35 -0.38 NorwegianCruise NCLH 58.86 0.06 s NVIDIA NVDA 191.03 0.09 OReillyAuto ORLY 207.01 -1.41 OldDomFreight ODFL 109.41 1.00 ON Semi ON 19.24 -0.18 OpenText OTEX 33.42 -0.23 PTC PTC 59.58 0.25 Paccar PCAR 72.93 0.07 PacWestBancorp PACW 48.62 -0.01 s Paychex PAYX 64.42 0.94 s PayPal PYPL 68.86 1.08 People'sUtdFin PBCT 18.28 ... PilgrimPride PPC 29.33 0.29 Priceline PCLN 1918.95 -1.25 Qiagen QGEN 34.17 -1.20 Qorvo QRVO 72.36 -0.58 Qualcomm QCOM 53.00 -1.12 RandgoldRscs GOLD 99.03 -0.46 RegenPharm REGN 447.15 -5.82 RossStores ROST 63.28 -1.27 RoyalGold RGLD 88.81 0.46 Ryanair RYAAY 106.68 -1.88 SBA Comm SBAC 152.22 0.87 s SEI Investments SEIC 63.93 0.38 Sina SINA 114.96 1.03 s SS&C Tech SSNC 41.07 0.37 SVB Fin SIVB 187.43 -0.64 ScrippsNetworks SNI 83.84 -0.91 Seagate STX 33.62 0.12 SeattleGenetics SGEN 61.77 0.30 Shire SHPG 152.28 0.28 SignatureBank SBNY 124.56 -1.12 SiriusXM SIRI 5.71 -0.01 Skyworks SWKS 105.04 -0.43 Splunk SPLK 63.49 0.01 Starbucks SBUX 55.97 0.33 SteelDynamics STLD 36.24 0.26 Stericycle SRCL 71.27 0.56 Symantec SYMC 31.90 0.29 s Synopsys SNPS 84.74 1.88 TD Ameritrade AMTD 48.10 -0.02 TESARO TSRO 121.23 3.32 T-MobileUS TMUS 61.28 0.10 s TRowePrice TROW 94.46 1.61 TakeTwoSoftware TTWO 103.44 -0.16 Tesla TSLA 355.68 1.08 s TexasInstruments TXN 92.62 -0.25 TractorSupply TSCO 58.20 -1.23 Trimble TRMB 40.68 0.09 21stCenturyFoxA FOXA 26.14 0.03 21stCenturyFoxB FOX 25.49 0.01 t UltaBeauty ULTA 190.16 -17.73 UltimateSoftware ULTI 195.13 -0.53 UniversalDisplay OLED 134.60 4.40 VEON VEON 3.94 -0.03 VeriSign VRSN 108.00 -0.29 VeriskAnalytics VRSK 83.82 0.46 VertxPharm VRTX 153.98 -0.04 t Viacom A VIA 32.45 -1.15 t Viacom B VIAB 24.57 -0.64 Vodafone VOD 29.06 0.28 WPP WPPGY 90.85 0.28 t WalgreensBoots WBA 69.00 0.08 Weibo WB 98.86 -0.84 WesternDigital WDC 85.76 0.14 s WillisTwrsWatson WLTW 156.43 0.47 Workday WDAY 108.64 0.13 WynnResorts WYNN 140.76 -2.51 Xilinx XLNX 72.47 -0.29 Yandex YNDX 32.34 0.51 ZebraTech ZBRA 110.09 -1.21 Zillow A ZG 41.43 0.18 Zillow C Z 41.71 0.30 ZionsBancorp ZION 46.72 -0.56 NYSE AMER CheniereEnergy LNG CheniereEnerPtrs CQP CheniereEnHldgs CQH ImperialOil IMO 46.81 0.31 28.60 -0.04 25.08 0.18 31.07 -0.57 October 12, 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 —52-WEEK— Inflation Latest ago High Low Aug. index level Chg From (%) July '17 Aug. '16 Other short-term rates U.S. consumer price index 0.30 0.21 245.519 252.460 All items Core 1.9 1.7 Latest Week ago 3.00 3.00 2.25 Commercial paper (AA financial) 1.23 1.26 90 days 1.30 0.62 Libor 4.25 4.25 4.25 3.50 3.20 3.20 3.20 2.70 1.475 1.475 1.475 1.475 Policy Rates 0.00 0.50 0.25 1.50 0.00 0.50 0.25 1.50 Euro zone Switzerland Britain Australia 0.00 0.50 0.25 1.50 0.00 0.50 0.25 1.50 1.38 0.15 Overnight repurchase 1.13 1.06 U.S. U.S. government rates Discount 1.75 1.75 1.00 1.1700 1.3125 1.0500 1.1600 1.1700 1.2000 1.3125 1.1600 1.1700 1.1900 0.3500 0.5625 0.2400 0.3000 0.3200 1.75 Federal funds Effective rate High Low Bid Offer 52-Week high low Call money 3.00 52-Week High Low Prime rates U.S. Canada Japan Week ago Latest International rates 1.1700 1.3125 1.0500 1.1600 1.1700 1.015 0.980 1.300 0.240 1.085 1.050 1.180 0.340 1.220 1.190 1.220 0.470 4 weeks 13 weeks 26 weeks One month Three month Six month One year 1.23778 1.34861 1.51350 1.80011 1.23889 1.35917 1.53156 1.82761 0.52400 0.87567 1.24267 1.55622 -0.401 -0.376 -0.310 -0.225 -0.405 -0.376 -0.309 -0.221 -0.376 -0.319 -0.212 -0.071 -0.405 -0.381 -0.310 -0.225 Euro Libor One month Three month Six month One year Euro interbank offered rate (Euribor) -0.372 -0.329 -0.274 -0.181 One month Three month Six month One year Latest -0.372 -0.329 -0.272 -0.171 -0.366 -0.311 -0.204 -0.069 Value Traded -0.375 -0.332 -0.275 -0.181 52-Week High Low DTCC GCF Repo Index 1.081 1.150 Treasury MBS 43.750 1.366 0.244 91.200 1.506 0.257 Open Implied Settle Change Interest Rate Fannie Mae 98.885 0.010 5020 1.115 98.880 unch. 5491 1.120 98.725 -0.005 1928 1.275 Treasury Oct Treasury Nov Treasury Dec Weekly survey Secondary market Latest Week ago Year ago Freddie Mac 30-year mortgage yields 3.441 3.440 3.865 2.960 3.465 3.468 3.899 2.990 30 days 60 days 1.23889 1.35917 1.53156 1.80844 DTCC GCF Repo Index Futures Treasury bill auction 3.85 3.15 3.18 3.91 3.21 3.16 30-year fixed 15-year fixed Five-year ARM 3.47 2.76 2.82 Notes on data: U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks, and is effective June 15, 2017. Other prime rates aren’t directly comparable; lending practices vary widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the DTCC GCF Repo Index are traded on NYSE Liffe US. Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; General Electric Capital Corp.; Tullett Prebon Information, Ltd. Net YTD NAV Chg % Ret Fund 34.56 -0.10 68.54 -0.11 68.65 +0.02 74.45 -0.13 38.56 +0.02 19.24 +0.02 15.40 -0.02 91.26 +0.12 30.88 -0.02 55.01 +0.23 9.52 +0.01 11.34 +0.01 23.12 ... 17.82 +0.01 26.23 ... 19.17 ... 27.52 -0.01 38.30 -0.09 PRIMECAP Odyssey Fds 35.47 -0.10 Growth r Principal Investors 13.95 +0.01 DivIntlInst Prudential Cl Z & I TRBdZ 14.54 +0.01 Growth HelSci InstlCapG IntlStk IntlValEq MCapGro MCapVal N Horiz N Inc OverS SF r R2020 R2025 R2030 R2035 R2040 Value 11.3 15.5 28.9 26.0 31.9 25.8 20.2 21.1 6.3 27.0 3.7 25.0 13.3 15.0 16.4 17.7 18.6 13.8 23.8 26.8 5.6 S 32.2 Schwab Funds 39.83 -0.07 15.7 24.3 S&P Sel T P ParnEqFd 10.8 15.0 28.1 s Flex FLEX 17.38 0.07 FlirSystems FLIR 42.68 0.10 Fortinet FTNT 38.51 -0.17 Gaming&Leisure GLPI 36.79 0.13 Garmin GRMN 54.70 0.32 Gentex GNTX 19.83 -0.22 GileadSciences GILD 81.30 -1.27 Goodyear GT 32.71 -0.28 Grifols GRFS 21.21 -0.05 HD Supply HDS 35.59 0.64 Hasbro HAS 96.60 -0.01 HenrySchein HSIC 80.51 -0.16 Hologic HOLX 36.56 -0.10 JBHunt JBHT 108.35 2.67 HuntingtonBcshs HBAN 13.79 -0.06 IAC/InterActive IAC 124.81 -1.14 IdexxLab IDXX 161.76 3.68 IHSMarkit INFO 44.00 0.03 IPG Photonics IPGP 196.64 2.01 IRSA Prop IRCP 58.50 ... IcahnEnterprises IEP 55.19 -0.21 Icon ICLR 114.85 -1.02 Illumina ILMN 208.24 1.55 Incyte INCY 112.73 1.11 Intel INTC 39.19 -0.11 InteractiveBrkrs IBKR 47.64 -0.15 Intuit INTU 145.86 2.20 IntuitiveSurgical ISRG 362.53 2.24 IonisPharma IONS 57.73 0.42 JD.com JD 38.51 -1.11 JackHenry JKHY 105.18 0.30 JazzPharma JAZZ 141.60 -0.97 JetBlue JBLU 20.34 -0.19 KLA Tencor KLAC 104.82 0.23 KraftHeinz KHC 78.15 -0.04 LKQ LKQ 37.17 0.21 LamResearch LRCX 186.99 0.81 LamarAdvertising LAMR 69.31 0.67 LibertyBroadbandA LBRDA 93.46 -2.15 LibertyBroadbandC LBRDK 94.40 -2.46 LibertyGlobal A LBTYA 31.94 -0.52 LibertyGlobal C LBTYK 30.82 -0.67 LibertyLiLAC A LILA 23.18 -0.45 LibertyLiLAC C LILAK 22.93 -0.50 LibertyQVC A QVCA 22.24 -0.12 LibertyVenturesA LVNTA 57.64 -1.26 LibertyFormOne A FWONA 37.83 0.11 LibertyFormOne C FWONK 39.64 0.41 LibertyBraves A BATRA 24.81 -0.51 LibertyBraves C BATRK 24.61 -0.43 LibertySirius A LSXMA 43.85 -0.24 LibertySirius C LSXMK 43.77 -0.03 LincolnElectric LECO 94.18 0.21 LogitechIntl LOGI 36.26 0.19 LogMeIn LOGM 115.45 -0.80 lululemon LULU 60.50 -2.19 MarketAxess MKTX 190.17 -1.54 Marriott MAR 114.46 0.33 MarvellTech MRVL 18.29 -0.22 MatchGroup MTCH 25.74 -0.31 MaximIntProducts MXIM 49.14 -0.02 MelcoResorts MLCO 24.06 -0.31 MercadoLibre MELI 246.26 -28.23 MicrochipTech MCHP 91.78 -0.15 MicronTech MU 40.58 -1.03 Microsemi MSCC 51.76 -0.49 Microsoft MSFT 77.12 0.70 Middleby MIDD 122.77 -0.78 Momo MOMO 32.14 -0.64 Mondelez MDLZ 41.81 0.10 MonsterBeverage MNST 55.96 0.26 Mylan MYL 37.76 -0.53 NXP Semi NXPI 115.18 -0.28 Nasdaq NDAQ 74.91 -0.72 NatlInstruments NATI 44.87 0.10 NetApp NTAP 43.42 -0.09 Netease NTES 271.76 2.96 Netflix NFLX 195.86 0.91 NewsCorp A NWSA 13.54 0.06 NewsCorp B NWS 13.85 0.10 Nordson NDSN 121.93 -0.43 Net Sym Close Chg Stock Money Rates EqInc NA ... 0.23 -0.08 -1.23 -0.66 ... -1.42 -1.31 5.93 0.31 2.04 -0.18 -1.39 0.26 -0.55 0.08 -0.04 -0.06 0.42 0.50 -0.81 -0.99 -0.49 0.12 0.20 0.13 0.10 4.75 -0.24 -1.66 0.29 0.92 0.11 -0.09 0.48 0.52 0.50 0.43 -0.15 -1.06 0.23 -9.41 0.05 -3.95 -1.01 0.84 -0.33 0.73 1.37 0.49 5.69 -1.47 -1.41 -0.15 0.27 -1.96 -0.65 0.43 -2.62 1.09 -0.40 0.20 -0.72 -0.70 0.14 -0.26 -0.34 -0.22 0.17 1.09 5.73 -0.01 -0.92 0.81 0.18 -0.04 -0.30 -0.19 1.43 -0.11 0.43 Net Sym Close Chg Stock Borrowing Benchmarks | WSJ.com/bonds NA EqIndex M John Hancock Class 1 LSBalncd 15.89 LSGwth 17.03 John Hancock Instl 23.91 DispValMCI JPMorgan Funds 39.84 MdCpVal L JPMorgan I Class CoreBond 11.65 JPMorgan R Class 11.66 CoreBond AkamaiTech AKAM 50.52 AlexionPharm ALXN 141.46 s AlignTech ALGN 192.38 Alkermes ALKS 50.33 s AlnylamPharm ALNY 124.20 s Alphabet A GOOGL 1005.65 s Alphabet C GOOG 987.83 Altaba AABA 67.91 Amazon.com AMZN 1000.93 Amdocs DOX 65.64 Amerco UHAL 365.29 AmericanAirlines AAL 52.65 Amgen AMGN 182.76 AnalogDevices ADI 88.83 Apple AAPL 156.00 s AppliedMaterials AMAT 53.31 ArchCapital ACGL 98.55 Atlassian TEAM 40.33 s Autodesk ADSK 118.99 ADP ADP 113.59 BOK Fin BOKF 89.14 Baidu BIDU 259.33 BankofOzarks OZRK 45.70 s Biogen BIIB 333.31 BioMarinPharm BMRN 95.13 Bioverativ BIVV 59.17 BlackBerry BBRY 11.49 bluebirdbio BLUE 130.20 BrighthouseFin BHF 60.43 Broadcom AVGO 248.74 CA CA 33.92 s CBOE Holdings CBOE 110.02 CDK Global CDK 64.96 CDW CDW 68.95 CH Robinson CHRW 77.18 CME Group CME 137.71 CSX CSX 53.58 s CadenceDesign CDNS 41.82 Carlyle CG 23.95 Celgene CELG 138.50 Cerner CERN 71.75 CharterComms CHTR 355.71 s CheckPointSftw CHKP 117.76 ChinaLodging HTHT 125.66 CincinnatiFin CINF 75.93 s Cintas CTAS 151.51 CiscoSystems CSCO 33.26 CitrixSystems CTXS 81.30 s Cognex CGNX 118.85 s CognizantTech CTSH 74.09 Coherent COHR 253.68 Comcast A CMCSA 35.95 CommerceBcshrs CBSH 56.68 CommScope COMM 32.19 s Copart CPRT 36.11 s CoStarGroup CSGP 287.24 Costco COST 157.22 Ctrip.com CTRP 54.74 t DISH Network DISH 49.03 DentsplySirona XRAY 58.41 DiamondbackEner FANG 101.12 DiscoveryComm B DISCB 22.00 t DiscoveryComm A DISCA 19.28 t DiscoveryComm C DISCK 18.23 s DollarTree DLTR 91.37 E*TRADE ETFC 43.98 EastWestBancorp EWBC 59.52 eBay EBAY 38.09 s ElbitSystems ESLT 150.96 ElectronicArts EA 117.14 Equinix EQIX 464.70 Ericsson ERIC 5.75 Exelixis EXEL 24.73 Expedia EXPE 147.98 ExpeditorsIntl EXPD 60.44 t ExpressScripts ESRX 57.67 F5Networks FFIV 115.69 Facebook FB 172.55 Fastenal FAST 45.94 FifthThirdBncp FITB 28.15 Fiserv FISV 127.17 Net YTD NAV Chg % Ret Fund FPACres Federated Instl StraValDivIS iShS&P500ValueETF iShUSPfdStk iShTIPSBondETF iSh1-3YTreasuryBd iSh7-10YTreasuryBd iSh20+YTreasuryBd iShRussellMCGrowth PIMCOEnhShMaturity PwrShQQQ 1 PwrShS&P500LoVol PwrShSrLoanPtf SPDRBloomBarcHYBd SPDR Gold SchwabIntEquity SchwabUS BrdMkt SchwabUS LC SPDR DJIA Tr SPDR S&PMdCpTr SPDR S&P 500 SPDR S&P Div TechSelectSector UtilitiesSelSector VanEckGoldMiner VangdInfoTech VangdSC Val VangdDivApp VangdFTSEDevMk VangdFTSE EM VangdFTSE Europe VangdFTSEAWxUS VangdGrowth VangdHlthCr VangdHiDiv VangdIntermBd VangdIntrCorpBd VangdLC VangdMC VangdMC Val VangdREIT VangdS&P500 VangdST Bond VangdSTCpBd VangdSC VangdTotalBd VangdTotIntlBd VangdTotIntlStk VangdTotalStk VangdTotlWrld VangdValue WisdTrEuropeHdg WisdTrJapanHdg –0.96 –10.3 –0.67 11.5 5.3 0.42 1.08 26.0 0.21 –20.5 –0.37 –9.5 –0.76 12.3 0.03 11.3 –0.11 19.9 0.53 16.0 1.7 0.01 0.3 –0.03 0.7 0.03 0.02 21.0 –0.02 31.1 0.02 22.7 –0.14 13.9 9.8 0.04 8.5 –0.12 –0.07 13.9 1.4 0.12 7.4 0.30 0.15 17.8 0.16 12.8 ... 12.2 3.3 0.02 2.0 –0.11 5.3 0.19 0.7 0.05 –0.01 18.0 –0.42 28.3 –0.09 19.9 0.02 25.7 –0.04 32.1 –0.30 26.0 –0.12 16.0 –0.52 27.0 2.6 0.07 0.05 21.5 –0.14 13.9 6.7 –0.37 –0.04 17.6 –0.07 11.0 5.2 –0.18 –0.15 13.7 0.11 11.7 6.7 0.03 0.08 13.1 0.02 19.8 Net YTD NAV Chg % Ret Fund Closing Chg YTD Symbol Price (%) (%) ETF Net Sym Close Chg Stock NASDAQ Exchange-Traded Portfolios | WSJ.com/ETFresearch F Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least $500 million each. NAV is net asset value. Percentage performance figures are total returns, assuming reinvestment of all distributions and after subtracting annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees. NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date return. 3-YR%RET is trailing three-year return annualized. Fund Masco MAS 39.04 s Mastercard MA 146.74 McCormick MKC 99.02 McCormickVtg MKC.V 99.04 s McDonalds MCD 163.91 McKesson MCK 150.67 Medtronic MDT 77.92 Merck MRK 63.83 MetLife MET 52.73 s MettlerToledo MTD 660.07 MichaelKors KORS 47.65 MicroFocus MFGP 31.92 MidAmApt MAA 108.66 MitsubishiUFJ MTU 6.41 MizuhoFin MFG 3.55 MobileTeleSys MBT 10.52 MohawkIndustries MHK 258.24 MolsonCoors B TAP 84.35 Monsanto MON 119.91 Moody's MCO 143.93 MorganStanley MS 48.59 Mosaic MOS 21.23 MotorolaSolutions MSI 89.80 NRG Energy NRG 25.68 NTTDoCoMo DCM 23.23 s NVR NVR 2928.11 NationalGrid NGG 63.09 NatlOilwell NOV 34.38 NatlRetailProp NNN 42.22 NewOrientalEduc EDU 90.53 NY CmntyBcp NYCB 12.81 NewellBrands NWL 42.78 NewfieldExpln NFX 29.78 NewmontMining NEM 38.39 NextEraEnergy NEE 150.70 NielsenHoldings NLSN 39.87 Nike NKE 50.83 NiSource NI 26.57 NobleEnergy NBL 27.29 Nokia NOK 5.83 NomuraHoldings NMR 5.76 Nordstrom JWN 42.59 s NorfolkSouthern NSC 133.69 s NorthropGrumman NOC 298.68 Novartis NVS 85.99 NovoNordisk NVO 49.06 Nucor NUE 57.42 NuSTAREnergy NS 38.11 OGE Energy OGE 36.85 ONEOK OKE 56.41 OccidentalPetrol OXY 64.22 Och-Ziff OZM 3.30 Olin OLN 35.51 OmegaHealthcare OHI 31.41 Omnicom OMC 74.36 Oracle ORCL 48.23 Orange ORAN 16.42 OrbitalATK OA 133.42 Orix IX 83.28 s Oshkosh OSK 87.30 s OwensCorning OC 79.51 PG&E PCG 64.50 PLDT PHI 31.98 s PNC Fin PNC 135.27 POSCO PKX 69.74 PPG Ind PPG 113.40 PPL PPL 38.37 PVH PVH 124.80 PackagingCpAm PKG 115.50 PaloAltoNtwks PANW 148.24 ParkHotels PK 28.55 s ParkerHannifin PH 180.08 ParsleyEnergy PE 26.52 Pearson PSO 8.18 PembinaPipeline PBA 34.30 Pentair PNR 69.89 PepsiCo PEP 112.45 s PerkinElmer PKI 71.81 Perrigo PRGO 87.66 PetroChina PTR 63.75 PetroleoBrasil PBR 10.40 PetroleoBrasilA PBR.A 10.10 s Pfizer PFE 36.35 PhilipMorris PM 114.53 Phillips66 PSX 94.34 PinnacleFoods PF 57.05 PinnacleWest PNW 87.31 PioneerNatRscs PXD 146.24 PlainsAllAmPipe PAA 21.26 PlainsGP PAGP 21.49 PolarisIndustries PII 104.37 PostHoldings POST 87.12 Potash POT 19.02 Praxair PX 141.87 PrincipalFin PFG 67.33 Procter&Gamble PG 92.15 Progressive PGR 48.75 Prologis PLD 65.08 PrudentialFin PRU 109.35 Prudential PUK 48.33 s PublicServiceEnt PEG 49.02 PublicStorage PSA 216.81 PulteGroup PHM 27.09 QuestDiag DGX 91.52 QuintilesIMS Q 98.45 s RELX RENX 21.84 Fund Data provided by Thursday, October 12, 2017 Net YTD Net YTD NAV Chg % Ret Fund NAV Chg % Ret Fund Net Sym Close Chg Stock Net YTD NAV Chg % Ret Fund GrwthAdml 69.45 HlthCareAdml r 90.80 HYCorAdml r 5.98 25.80 InfProAd 94.74 IntlGrAdml ITBondAdml 11.46 ITIGradeAdml 9.83 LTGradeAdml 10.62 MidCpAdml 184.03 11.40 MuHYAdml 14.21 MuIntAdml 11.68 MuLTAdml MuLtdAdml 10.99 MuShtAdml 15.80 PrmcpAdml r 133.96 REITAdml r 119.82 SmCapAdml 68.43 STBondAdml 10.45 STIGradeAdml 10.69 TotBdAdml 10.79 TotIntBdIdxAdm 21.80 TotIntlAdmIdx r 29.86 63.87 TotStAdml 14.11 TxMIn r 39.37 ValAdml WdsrllAdml 68.50 WellsIAdml 65.07 73.16 WelltnAdml 78.46 WndsrAdml VANGUARD FDS TIAA/CREF Funds 26.22 DivdGro EqIdxInst 19.14 -0.03 15.4 215.24 HlthCare r +0.02 11.5 ... 22.1 INSTTRF2020 22.42 IntlEqIdxInst 20.21 INSTTRF2025 22.67 ... NA Tweedy Browne Fds 28.46 +0.03 13.7 INSTTRF2030 22.85 +0.01 5.1 GblValue INSTTRF2035 23.04 INSTTRF2040 23.21 ... NA INSTTRF2045 23.35 VANGUARD ADMIRAL 39.09 ... NA 500Adml 235.65 -0.38 15.7 IntlVal 19.78 33.86 -0.02 10.5 LifeCon BalAdml 32.93 ... NA CAITAdml 11.84 +0.01 4.8 LifeGro 26.79 CapOpAdml r 155.17 -0.28 24.9 LifeMod 26.74 37.17 +0.07 27.3 PrmcpCor ... NA EMAdmr 32.85 EqIncAdml 75.83 -0.04 13.1 SelValu r 27.03 -0.04 31.0 ExtndAdml 82.19 -0.05 14.0 STAR 10.69 10.54 +0.01 2.1 STIGrade -0.04 12.9 GNMAAdml V Net YTD NAV Chg % Ret TgtRe2015 TgtRe2020 TgtRe2025 TgtRe2030 TgtRe2035 TgtRe2040 TgtRe2045 TgtRe2050 TgtRetInc TotIntBdIxInv WellsI Welltn WndsrII 15.86 +0.01 31.45 ... 18.42 -0.01 33.27 -0.01 20.43 ... 35.16 -0.02 22.08 -0.01 35.53 -0.01 13.53 ... 10.90 +0.01 26.86 +0.01 42.36 -0.05 38.60 -0.10 VANGUARD INDEX FDS 235.64 -0.38 500 ExtndIstPl 202.81 -0.14 55.35 -0.04 SmValAdml 10.75 +0.01 TotBd2 17.85 +0.01 TotIntl 63.85 -0.09 TotSt VANGUARD INSTL FDS 33.87 -0.01 BalInst DevMktsIndInst 14.13 ... DevMktsInxInst 22.09 +0.01 ExtndInst 82.18 -0.06 69.46 -0.03 GrwthInst InPrSeIn 10.51 +0.02 232.50 -0.37 InstIdx InstPlus 232.52 -0.37 57.30 -0.08 InstTStPlus 40.65 +0.04 MidCpInst 200.49 +0.21 MidCpIstPl 68.43 ... SmCapInst ... STIGradeInst 10.69 10.79 +0.01 TotBdInst TotBdInst2 10.75 +0.01 10.79 +0.01 TotBdInstPl TotIntBdIdxInst 32.72 +0.03 TotIntlInstIdx r 119.39 +0.08 TotItlInstPlId r 119.41 +0.08 63.88 -0.09 TotStInst 39.37 -0.09 ValueInst -0.04 -0.18 -0.01 +0.05 -0.15 +0.01 ... +0.04 +0.20 +0.01 +0.01 +0.01 ... ... -0.29 +0.66 ... ... ... +0.01 +0.02 +0.02 -0.09 ... -0.10 -0.19 +0.04 -0.09 -0.25 22.3 19.8 7.0 2.2 40.7 4.0 4.3 9.1 14.1 6.7 4.6 5.5 2.7 1.4 23.1 5.3 11.8 1.5 2.2 3.3 1.4 23.6 15.4 22.6 10.7 11.0 7.8 10.6 14.3 +0.05 -0.42 +0.01 ... ... ... -0.01 -0.01 -0.01 ... -0.01 +0.01 -0.05 -0.04 -0.01 ... 13.6 19.7 11.3 12.7 14.0 15.2 16.4 16.9 23.1 8.8 15.2 12.0 20.6 14.1 14.9 Western Asset 2.2 CorePlusBdI 9.3 11.3 12.7 13.9 15.2 16.4 16.9 16.9 6.9 1.3 7.7 10.5 10.9 15.6 14.0 7.8 3.2 23.5 15.3 10.5 22.6 22.7 14.0 22.3 2.2 15.7 15.7 15.4 14.1 14.1 11.8 2.3 3.3 3.3 3.3 1.4 23.6 23.6 15.4 10.7 W NA ... NA For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B10 | Friday, October 13, 2017 THE WALL STREET JOURNAL. BANKING & FINANCE The BBBs Rule Investment-Grade Bonds IMF flags supremacy of lower-grade debt as an indication of feverish hunt for yield BY MIKE BIRD The market in investmentgrade bonds is increasingly dominated by the very lowestquality debt that qualifies for that rating. That could cause problems as investors stock up on bonds more prone to default or to quickly losing their value should credit conditions turn. The portion of global corporate bonds rated triple-B has roughly doubled in a decade and now makes up nearly half of all investment-grade credit. The share of triple-B rated bonds in the U.S. has recently surpassed its 2002 peak, climbing above 47% of all in- vestment-grade credit. Around 48% of bonds in the eurozone are rated triple-B, while less than 20% were when Lehman Brothers collapsed in 2008. Triple-B debt securities are the last rung on the investment-grade ladder. A downgrade to double-B sees a company’s bonds enter high-yield, or junk, indexes instead. This triple-B supremacy has been flagged in the International Monetary Fund’s latest global financial stability report as an example of the relentless hunt for yield among bond investors. “Low yields, compressed spreads, abundant financing, and the relatively high cost of equity capital have encouraged a buildup of financial balance sheet leverage,” the report said. Ultralow interest rates and massive bond buying by central banks have pushed down financing costs for companies Bulging BBBs The percentage of investment-grade bonds rated BBB has reached record highs during the last 12 months, with a particularly sharp rise in Europe in recent years... ...while the difference in corporate yields has tightened considerably, especially recently. 50% 10% U.S. 40 8 Global Eurozone 6 Global corporate bond indexes* 20 4 BBB 10 2 0 0 30 AAA 1998 2000 ’10 *Bank of America Merrill Lynch global corporate bond indexes Sources: International Monetary Fund (investment-grade bonds); FactSet (yields) raising money in bond markets. The yield on Bank of America Merrill Lynch’s global corporate BBB index is just 2.89%, compared with a 20year average of more like 5.1%. What’s more, the spread between the highest- and lowestrated investment grade credits has collapsed. In 2008, during the financial crisis, triple-B rated bonds yielded over 8%, HSBC Appoints a Lifer as CEO BY MARGOT PATRICK STREET Continued from page B1 has comparable estimates grew toward their valuation this year, increasing earnings while their shares rose more slowly. That’s almost as many as the 70 in which valuations dropped in a way shareholders hate, with shares falling as earnings estimates rose. The result is troubling. Even as estimated earnings for the next 12 months went up, the market went up more, pushing the S&P’s forward P/E ratio from 17.2 to 18. Investors became more optimistic, meaning an even bigger rise in earnings is needed in the future to avoid disappointment. he result is that many valuation gauges are flashing red. Strategist Peter Oppenheimer at Goldman Sachs Group Inc. calculates that the median stock is in the top 1% to 3% of historical valuations when measured by the price to book, forward P/E ratio, total company value to sales or to operating income, and the P/Eto-growth ratio. T ’10 ’12 ’14 ’16 THE WALL STREET JOURNAL. over 4 percentage points more than AAA-rated debt. On Wednesday, that spread was just 0.25 percentage point. That could be bad news for investors if credit conditions New York Investigates Deloitte Cyberbreach BY MICHAEL RAPOPORT JAMES MACDONALD/BLOOMBERG NEWS When a teenage John Flint decided he wanted to become a banker, his high-school headmaster wrote to a contact at HSBC Holdings PLC for advice. The reply came back: young Flint should go to college, then enter HSBC’s international officers program and prepare to travel the world. Mr. Flint, now 49 years old, duly did both. On Thursday, he was named by HSBC Chairman Mark Tucker as the bank’s new chief executive, succeeding Stuart Gulliver, in a vote for continuity at the Asia-focused bank and for Mr. Flint’s homegrown values. To get the top spot, Mr. Flint saw off rivals from inside and outside the bank. Mr. Tucker’s outsider status—he is the bank’s first externally hired chairman—meant analysts expected the new CEO to be Mr. Flint or another internal candidate. In an interview with The Wall Street Journal, Mr. Tucker—who started this month, breaking with a century-old tradition of the bank of promoting from within— said Mr. Flint is “the best and optimal fit” for the job. Now the head of retail banking and wealth management, Mr. Flint is quintessentially HSBC. After joining its international leadership program out of college, he learned the ropes in bank branches, trading rooms and at the bank’s treasury department, in cities including Hong Kong, London, New York and Bangkok. The assignments often had him working alongside Mr. Gulliver, and he was the outgoing CEO’s chief of staff for a year before taking his current role in 2013. Colleagues describe Mr. Flint as sharp, capable and mild-mannered, with some of the same instinct and skill Mr. Gulliver is known for in managing risk and market shocks. Those skills were honed in Asia’s financial crisis in the 1990s, when a young Mr. Flint ’08 John Flint learned the ropes in branches, trading rooms and at HSBC’s treasury department. was head of global markets at the bank’s Indonesian arm and led it to profits despite the turmoil. As part of HSBC’s cadre of international officers—later rebranded by the bank as international managers to drop the military connotation—Mr. Flint moved up the ranks and has long been seen as a possible CEO. He is expected to continue on much the same track as Mr. Gulliver with respect to the bank’s strategy. Mr. Tucker said elements of it may be “enhanced and accelerated.” Efforts already under way include investing more in Asia and rebuilding profitability in the U.S. and Mexico. HSBC made a disastrous foray into the U.S. in the early 2000s, buying a large subprime lender just before the financial crisis. Its business in the country is now a mix of retail branches in key markets such as New York and California and commercial and investment banking. Mr. Flint, who as a child lived in Saudi Arabia for several years while his father was a teacher there, has “vision and passion” for HSBC, Mr. Tucker said. HSBC said Mr. Flint wasn’t available for an interview Thursday. In a statement, Mr. Flint Stocks Are Expensive S&P 500 12-month forward P/E ratio Monthly Year to date, weekly 18.5 times 25 times 20 18.0 15 17.5 10 17.0 5 16.5 0 ’88 ’90 2000 ’10 Source: Thomson Reuters Datastream Weighted by market value, the forward P/E ratio—with a history back to the 1970s—has been higher only once since the dot-com bubble burst, while the historical CAPE compiled by Yale Prof. Robert Shiller was higher only in 1929 and the dot-com bubble. This can still work out. A stronger global economy, weaker dollar and low interest rates might mean earnings will accelerate enough to bring down valuations even as share prices rise a little more. But this is different from the claim that rising earnings justify this year’s stock gains. J F M A M J J A S O THE WALL STREET JOURNAL. Consider the technology and telecom sectors. Tech has been reporting big gains in profits, and analysts have upgraded their earnings forecasts by more than any other sector, while telecom companies are struggling with a price war and are in the only sector in which earnings estimates have dropped this year. On the face of it, this explains why tech has been the best-performing sector in 2017 and telecom the worst. But shareholders didn’t just project the higher earnings of tech into said he was humbled and excited. He said the bank “must continue to innovate and accelerate” its pace of change. Last year, Mr. Flint traveled with other HSBC executives and research analysts from other banks and brokers on a trip through China’s Pearl River Delta region. One analyst who hadn’t met him before said he was struck by his down-to-earth manner and self-deprecating humor. Mr. Gulliver, 58, said in March he would retire in 2018. He also has been at the bank his entire career, and he too came up through the international managers’ program. the future, they pushed up the forward P/E ratio by about a 10th. Investors assume not just that earnings will be higher, but that earnings will accelerate. The opposite happened to telecom: Predicted earnings fell, and the forward P/E ratio dropped, making it the cheapest S&P 500 sector. Investors expect future earnings not just to be lower but to fall even faster than they previously thought. gain, both decisions might be proved right, and it’s normal for investors to project the recent past into the distant future. Jonathan Golub, Credit Suisse Group AG’s chief U.S. equity strategist, says shareholders typically push up valuations even in the late stages of an economic expansion, and P/E ratios come down on average only when recession hits and the market falls. But the fact that this year’s earnings provide a good explanation of what’s happened to stock prices doesn’t mean they’re a good justification. And it certainly doesn’t mean investors should sleep easy owning one of the most expensive markets in history. A worsen. Default rates on any investment-grade credit are very low, but they vary between different ratings levels. For triple-B rated companies, the highest one-year global default rate was 1%, reached in 2002, according to S&P Global Ratings. In comparison, the default rate for AAA-rated bonds has been 0% in every year since 1981, even during the financial crisis. Investors with more tripleB’s could also expect more volatility. During 2008, Bank of America Merrill Lynch’s BBB Global Corporate Index fell in value by around 15%, while the AAA index ended the year flat. With the gap between yields currently so thin, investors are offered very little protection against a market panic, or even against a small rise in default rates, which have been low for the past five years. The New York attorney general’s office is looking into the cyberbreach at Deloitte LLP that the accounting firm says compromised information on a small number of its clients. The office is “investigating the data breach and its circumstances,” a spokeswoman for Attorney General Eric Schneiderman said Wednesday in response to an inquiry from The Wall Street Journal. Deloitte disclosed the breach in September. At the time, the firm said a hacker accessed data via an email platform relating to a “very few” Deloitte clients. Deloitte said the breach didn’t cause any disruption to clients’ businesses, consumers or Deloitte’s provision of services. Deloitte’s breach is one of a string of recent hacks that have deepened concerns about the security of consumers’ and businesses’ digital information. Credit-reporting company Equifax Inc. has acknowledged that hackers stole the personal information of up to 145.5 million Americans between May and July. The Securities and Exchange Commission has said its Edgar corporate-filing system was hacked last year, and that the thieves could have used the information for insider trading. Deloitte said Mr. Schneiderman’s office has reached out to it about the breach “with some questions focused on private information of New York state residents,” and that such a move was “typically the case in response to a cyber-incident reported in the media.” The firm reiterated that “consumers were not affected by this incident.” The Deloitte hack was aimed at obtaining information that the hacker could take advantage of, said a person familiar with the situation, credentials like passwords from Deloitte clients that the hacker could then use to try to break into those clients’ own systems. They were “looking for things that they could leverage outside of Deloitte,” the person said. Attorney general is looking at attack that began in 2016 and was detected this year. The Deloitte breach began in September 2016, and the firm detected it in April 2017 when it noticed unusual activity in its email system, people familiar with the situation said. But sensitive data on Deloitte’s clients weren’t compromised, Deloitte has said. Ultimately, the number of emails the hackers actually accessed was small enough that investigators were later able to read every one, said one of the people familiar with the situation. GOP Bill Would Boost Checks on Credit Firms BY ANDREW ACKERMAN WASHINGTON—Top congressional Republicans made the first significant moves to boost federal oversight of credit-reporting firms in response to the hack disclosed by Equifax Inc. last month. Rep. Patrick McHenry of North Carolina introduced a bill on Thursday to require the three major credit-reporting firms—Equifax, Experian PLC and TransUnion—to submit to regular federal cybersecurity reviews for the first time. All three companies also would have to phase out their use of Social Security numbers to verify identities by 2020. As a deputy GOP whip, Mr. McHenry holds significant sway among House Republicans. The bill is an important starting point for the House Financial Services Committee as it considers a legislative response. Separately, Sen. Mike Crapo (R., Idaho), chairman of the Senate Banking Committee, asked federal banking regulators if they needed more authority to supervise the creditreporting firms to ensure they adequately protect consumer data. “I am concerned there may be a regulatory gap with respect to supervision of credit reporting agencies for data security standards,” Mr. Crapo wrote in a letter to the heads of the Federal Reserve, Office of the Comptroller of the Currency and Federal De- posit Insurance Corp. A spokesman for the Fed and a spokeswoman for the FDIC confirmed the agencies received Mr. Crapo’s letter and planned to reply. A spokesman for the OCC didn’t immediately respond to a request for comment. Representatives for the three credit-reporting firms didn’t respond to requests for comment. A person familiar with their thinking said the companies support some aspects of the bill sponsored by Mr. McHenry, including the heightened supervision. The lawmakers’ moves come after a series of hearings in the House and Senate last week featuring former Equifax Chief Executive Richard Smith. Mr. Smith repeatedly apologized for the hack and said the company didn’t initially understand its severity. The Equifax hack “exposed a major shortcoming in our nation’s cybersecurity laws and Congress must act,” Mr. McHenry said in a statement. Equifax disclosed last month that data belonging to about 145.5 million Americans was potentially compromised. The proposed legislation doesn’t specify which federal agency will inspect cybersecurity at the companies. Rather, the bill leaves it up to a panel of bank regulators, the Federal Financial Institutions Examinations Council, to designate one of the federal banking agencies as the supervisor. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | B11 * * * * MARKETS Treasurys Advance On North Korea Fear China Muddles a Global Signal BY DANIEL KRUGER BY AMRITH RAMKUMAR U.S. government bond prices rose Thursday as investors focused on geopolitical risks and the outlook for inflation and Federal Reserve policy. The yield on the benchmark 10-year U.S. Treasury note fell to 2.323%, the CREDIT lowest since MARKETS Sept. 28, from 2.346% Wednesday. Yields fall as bond prices rise. Investors bought Treasurys after the U.S. Geological Survey reported an event with “earthquake-like characteristics” in an area of North Korea where nuclear tests have been conducted. Also spurring demand for bonds was a U.S. proposal to let the North American Free Trade Agreement expire after five years unless the U.S., Canada and Mexico each renew it. “There was quite a bit of bad news,” said Aaron Kohli, an interest-rate strategist with BMO Capital Markets. Yields moved briefly higher earlier in the session as labor and inflation data raised expectations that Friday’s report on consumer prices could show that inflation will be strong enough for the Fed’s course of rate increases to match the central bank’s forecasts. Initial jobless claims, a proxy for layoffs across the U.S., decreased by 15,000 to a seasonally adjusted 243,000 in the week ended Oct. 7, the Labor Department said Thursday. Economists surveyed by The Wall Street Journal expected 252,000 new claims last week. Shanghai is encroaching on London as the hub of the metals-trading world—a shift that investors say threatens to erode the reliability of copper, zinc and COMMODITIES a l u m i n u m prices as a read on the health of the global economy. Trading volume on the Shanghai Futures Exchange nearly tripled between April 2013 and July 2017, data on averages compiled by IHS Markit show. Metric tons traded in Shanghai have climbed each year since 2013. Futures and options volume on the London Metal Exchange, long the center for global metals trading, fell 12% from 2014 to 2016 and is roughly flat this year, according to the LME, which is still the leader in physical trading. Because industrial metals such as copper are used in the manufacturing of items from bridges to electric vehicles, they have long been used to gauge the likely course of future economic activity. Now, analysts say speculative Chinese investors—ranging from hedge funds to retail bettors—risk distorting that picture by accelerating price moves in either direction. That is fueling concerns about whether prices are becoming severed from the world’s supply-demand dynamics. “Heavy speculation can amplify moves in an extraordinary and unwarranted manner,” said Tai Wong, head of metals trading at BMO Capital Markets. “This makes base metals a less reliable global economic indicator.” Commenting on the increase in Shanghai volume, an LME spokeswoman said the two exchanges should be viewed as complementary platforms. “There is some overlap in participants, but a change in trading on any venue does not automatically result in a change for another venue,” she said. Companies that produce commodities typically hedge using futures or options to AUCTION RESULTS Here are the results of Thursday's Treasury auction. 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. 29-YEAR, 10-MONTH BONDS $30,360,091,400 Applications $12,000,002,900 Accepted bids $4,905,400 " noncompetitively $0 " foreign noncompetitively 97.601366 Auction price (rate) (2.870%) 2.750% Interest rate 23.37% Bids at clearing yield accepted 912810RY6 Cusip number The bonds, dated Oct. 16, 2017, mature on Aug. 15, 2047. KIRILL KUKHMAR/TASS/ZUMA PRESS Shanghai’s growth as a metals-trading hub risks distorting gauge of economic activity Analysts say speculative Chinese investors are accelerating metals-price moves. Copper cathode sheets are packed at a Russian plant. guarantee a price for their output. In contrast, speculators use futures and contracts to try to turn quick profits. In the U.S. and London, traders and analysts get weekly data consistently on whether commodities producers and speculators are positioned for rising or falling prices and how active they are moving in and out of positions. But in other parts of the world, especially China, this data isn’t as readily available, making it harder for investors to surmise which way speculators might push prices next. Still, pinning down how much speculative bets are influencing prices remains an essential question in countries such as China, and analysts around the world have to try to answer it with limited data. Chinese speculation was “the key driver of the rally” in base metals this year, said Michael Widmer, chief metals strategist at Bank of America Merrill Lynch. “We’ve virtually not seen any improvement in underlying fundamentals.” China is the world’s largest metals consumer. But now, it has also become home to massive trading in metals. Because the government has taken Shanghai Surge Base-metals trading on the Shanghai Futures Exchange has risen rapidly in recent years. 100 million metric tons 80 60 40 20 2012 ’13 ’14 ’15 ’16 ’17 Note: 12-month rolling averages; volumes in copper, aluminum, tin, nickel, zinc and lead that are represented by futures Source: IHS Markit THE WALL STREET JOURNAL. steps to cool the property market and the country’s normally volatile stock market has calmed, Chinese retail investors have turned to base metals in recent years to generate rapid returns. Analysts said they prefer to trade on an exchange within the country because it is easier than trading on foreign exchanges like the LME. On some days this year, the reactions in prices to reports left many in the metals market confounded. Prices rose even after information that typically sends copper and other base metals lower. On such days, some fundamental investors and analysts blamed speculators. Data on Aug. 13 showed the pace of Chinese industrial output, retail and housing sales, and fixed-asset investments decelerated in July. Still, after two days of muted moves, prices of copper, aluminum and nickel went on to rally for the week and continued rising for the rest of August. On Aug. 29, U.S. mining giant Freeport-McMoRan reached an agreement with the Indonesian government over a key mine—a potential blow to copper prices since disputes between the company and country had limited supply. Yet prices went on to advance in five of the next six sessions. Many analysts use copper as a benchmark to gauge the performance of the wider industrial-metals complex because of its widespread uses. “Bullish news is being used to buy, but bearish news is being ignored,” said Daniel Briesemann, an analyst at Commerzbank. He said the 16% gain by an LME base metals gauge between May and August appeared largely driven by short-term players. Before then, the LME gauge had been roughly flat this year. Copper prices have fallen 1.5% from a nearly three-year intraday high last month. After about a four-month rally earlier this year, prices of nickel and iron ore have each tumbled at least 8%. Still, prices of copper, aluminum and zinc are each up more than 20% this year. Many investors and analysts are nervous ahead of the Chinese Communist Party’s leadership transition this month, which could bring changes to economic policy and spark volatility in commodities prices. Some investors and analysts attribute the rally in base metals this year to synchronized global growth and potential supply deficits. They note that bullish bets on metals have increased in other parts of the world. This summer, net bets by hedge funds and other speculative investors on a higher copper price set records for six straight weeks, according to Commodity Futures Trading Commission data going back to 2006 tracking CME Group exchanges. The same trend has held in London, where bets that copper prices would rise also hit their highest level in years. Global Oil Supply Increases CHRIS RATCLIFFE/BLOOMBERG NEWS BY CHRISTOPHER ALESSI Advanced Micro Devices shares rose 2.3% Thursday. The semiconductor company’s Roy Taylor spoke at a conference in the U.K. in April. Stocks Decline as Banks Kick Off Earnings BY AKANE OTANI AND RIVA GOLD Declines in bank shares pulled U.S. stock indexes away from records. Earnings season kicked off in earnest this week, with J.P. Morgan Chase and Citigroup reporting quarterly results that disappointed investors Thursday. Strong earnings growth among U.S. companies has supported THURSDAY’S major stock MARKETS indexes this year. If results are solid again this quarter, that should help U.S. stocks keep climbing even as investors raise concerns about valuations that make shares look pricey, some analysts said. “Growth may not be stellar, but it’s enough to create a good tailwind for company earnings,” said Karyn Cavanaugh, senior market strategist at Voya Investment Management. The Dow Jones Industrial Average fell 31.88 points, or 0.1%, to 22841.01 after finish- ing at a record Wednesday. The S&P 500 edged down 4.31 points, or 0.2%, to 2550.93, while the Nasdaq Composite fell 12.04, or 0.2%, to 6591.51. J.P. Morgan shares declined 85 cents, or 0.9%, to $95.99 after the company beat expectations for earnings and revenue but said revenue from fixed-income trading fell. Citigroup lost 2.57, or 3.4%, to 72.37 after the bank topped analysts’ forecasts for revenue and earnings. Still, the company’s return on equity continued to lag behind its peers. Bank of America and Wells Fargo are scheduled to report results Friday. CarGurus, which made its stock-market debut Thursday, opened 81% above its initialpublic-offering price, marking the biggest pop on an opening trade for U.S.-listed IPOs this year. Shares of the online car seller closed up 11.58, or 72%, at 27.58. Technology-services company DXC Technology was the biggest gainer in the S&P 500, Treasury Auctions Lagging Lenders Shares of Citigroup and J.P. Morgan Chase fell after the banks reported quarterly earnings. 1.5% 1.0 0.5 0 S&P 500 –0.5 –1.0 J.P. Morgan Chase –1.5 –2.0 –2.5 –3.0 –3.5 Citigroup –4.0 10 a.m. 11 Noon 1 Source: FactSet adding 3.55, or 4.1%, to 91.20. Semiconductor company Advanced Micro Devices added 32 cents, or 2.3%, to 14.20. Energy shares in the S&P 500, one of the worst-performing groups of the year, fell 0.4% Thursday as oil prices slid. U.S. crude for November delivery 2 3 4 p.m. THE WALL STREET JOURNAL. fell 1.4% to $50.60 a barrel. Elsewhere, the Stoxx Europe 600 swung between small gains and losses before finishing up less than 0.1%. Early Friday, Japan’s Nikkei Stock Average gained 0.28%, breaking 21000. South Korea’s Kospi was up 0.07%. The Treasury Department will auction $83 billion in securities next week, comprising $36 billion in new debt and $47 billion in previously sold debt. Details (all with minimum denominations of $100): Monday: $42 billion in 13week bills, a reopening of an issue first sold on July 20, 2017, maturing Jan. 18, 2018. Cusip number: 912796NN5. Also, $36 billion in 26-week bills, dated Oct. 19, 2017, maturing April 19, 2018. Cusip number: 912796PB9. Noncompetitive tenders for both issues must be received by 11 a.m. EDT Monday and competitive tenders by 11:30 a.m. Thursday: $5 billion in 29year, four-month 0.875% Treasury inflation-protected securities, a reopening of an issue first sold on Feb. 28, 2017, maturing Feb. 15, 2047. Cusip number: 912810RW0. Noncompetitive tenders for the TIPS must be received by noon Thursday and competitive tenders by 1 p.m. LONDON—The world’s oil supply expanded in September on the back of steady U.S. production growth, even as the global market continued to show signs of rebalancing, the International Energy Agency said Thursday. In its closely watched monthly report, the IEA said global oil supply had risen by 90,000 barrels a day last month from August, to 97.5 million barrels a day. That level was 620,000 barrels a day higher than during the same period a year ago. Supply growth in September was mainly driven by production in the U.S., despite disruptions caused by the hurricane season, as well as output in the North Sea and Kazakhstan, the report said. “Well completions at U.S. shale oil fields have picked up from the low levels seen at the start of the year, so that even though new rig additions have stalled, output continues its upward trend,” the agency noted. The IEA said production from the Organization of the Petroleum Exporting Countries rose only slightly in September, by 10,000 barrels a day, to 32.65 million barrels a day, in a sign that the cartel’s efforts to rein in output are largely on track. That level was 400,000 barrels a day lower than last year, a period of elevated OPEC output. There is “little doubt that the leading producers have recommitted to do whatever it takes to underpin the market and to support the long process of rebalancing,” the IEA said. Brent crude, the global benchmark, fell 1.2%, to $56.25 a barrel, on Thursday. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B12 | Friday, October 13, 2017 THE WALL STREET JOURNAL. MARKETS Munis Advance as Washington Stays Put Prices have rebounded Unbowed as scant progress on Trump’s agenda allays Municipal-bond prices are still in positive fears of a rate surge territory for 2017, BY HEATHER GILLERS Inaction in Washington has been a boon for municipalbond investors this year. In the two months after the 2016 election, investors took $27 billion out of muni-bond funds. The fear was that President Donald Trump’s agenda for taxes, infrastructure and health care would drive up interest rates, and thus make outstanding bonds less attractive. Washington has made scant policy changes, and those concerns have since abated. In addition, the GOP tax framework leaves the tax-deductibility of municipal bonds intact. In short, little has changed, and investors are again doing what they had done in previous decades: buying munis. “So far this year has been very good for returns for munis, and somewhat unexpectedly,” said Jim Colby, senior municipal portfolio manager at VanEck. Also driving up prices: Cities and states have so far issued much less debt than last year, leaving investors hungry for municipal bonds. Though prices have drifted downward slightly over the past month alongside Treasurys, the S&P Municipal Bond Index is back to its pre-election level, 4.4% higher than at the beginning of January. In trading this month, a New York state general-obligation bond carried a yield of 1.2%, compared with 2.1% in December. Yields fall as prices rise. About $28 billion flowed into municipal-bond mutual funds and exchange-traded funds from January through September, according to the Investment Company Institute. Muni prices have risen in 2017 alongside Treasurys. S&P Municipal Bond Index S&P U.S. Treasury Bond Current 10-Year Index despite a September selloff that echoed a sharp postelection decline. Many analysts say a slowdown in issuance ﬁgures prominently in the strong performance. 1% 0 –1 –2 –3 –4 –5 –6 –7 –8 2017 Investors have snapped up higher-grade state debt this year. Price of a state general-obligation bond maturing in 2024 Slowing issuance is helping support prices. Issuance of municipal bonds, through Oct. 6 of each year $1.26 $350 billion 1.24 New York 300 California 250 1.22 200 1.20 150 100 1.18 50 1.16 0 2017 2007 ’08 ’09 ’10 ’11 Sources: S&P Dow Jones Indices (indexes); Municipal Securities Rulemaking Board (state bonds); Thomson Reuters (issuance) These investors are largely shrugging off two potentially disruptive events: multiple ratings downgrades in Hartford, Conn., where the mayor in July hired restructuring advisers; and what amounts to the largest-ever municipal bankruptcy, in Puerto Rico. “Munis had a pretty good year,” said J.R. Rieger, managing director of fixed-income index product management at S&P Dow Jones Indices LLC. “That’s kind of a surprise to me given all the headline headwinds that the muni market is facing.” Increasing demand also came from foreign buyers. More than $3 billion flowed into municipal bonds from outside the U.S. in the second quarter, bringing the total ’14 ’15 ’16 ’17 THE WALL STREET JOURNAL. amount of munis held by foreign investors to a record $98.6 billion, according to Federal Reserve data. With global interest rates still low, munis appeal to foreign institutional investors seeking safe long-dated securities, even FINANCIAL ANALYSIS & COMMENTARY Say Goodbye to the China Bid China’s seemingly insatiable demand for foreign assets has driven up prices for everything from U.S. Treasury bonds to global companies to luxury real estate. Now, a combination of market forces and capital controls is choking off the flow of Chinese cash. Markets around the world will have to adjust. As Chinese exports boomed starting in the early part of the last decade and foreign investment flooded into the country, it recycled these inflows into foreign government bonds, mostly Treasurys, to keep the yuan from rising. The buying persisted for over a decade, driving bond prices up and yields down globally. China moved to invest in other asset classes, buying stakes in Morgan Stanley and U.K. utility Thames Water via government fund China Investment. The form of China’s foreign buying shifted in 2014, ’13 HEARD ON THE STREET Email: firstname.lastname@example.org Second in a Heard on the Street series about China ’12 Downshift Overseas mergers and acquisitions by Chinese companies $200 billion 150 100 50 0 2009 ’10 ’11 ’12 Note: Figures for 2017 are as of Oct. 9. Source: Dealogic when the U.S. began exiting quantitative easing and China’s growth slowed. Ordinary Chinese feared that the yuan would fall as growth slowed. Both individuals and companies rushed to get money out of China. This was the start of the era when Anbang Insurance Group paid nearly $2 billion for the Waldorf Astoria in New York. In February 2016, China National Chemical agreed to buy Swiss pesti- ’13 ’14 ’15 ’16 ’17 THE WALL STREET JOURNAL. cide maker Syngenta for $43 billion. The China bid, or at least the expectation of one, sent prices of luxury properties soaring, fueled real-estate bubbles from Vancouver to Sydney, and pushed up prices of companies seen as desirable for Chinese buyers. Alarmed by the outflow, Beijing began to tighten capital controls in 2015 and 2016, but the deal making persisted until this year when the government cracked down. So far this year, outbound mergers and acquisitions by Chinese companies are down 27% from the year-earlier period, according to data provider Dealogic. “The short bubble of China bids is over,” says one M&A banker who has advised on Chinese acquisitions. Now, pretty much the only thing the Chinese government encourages its companies to buy are high-tech firms. But these assets are precisely the kind that Western governments don’t want to fall into Chinese hands. Nor is China set to return as a big buyer of Treasurys. Indeed, if the Federal Reserve keeps tightening, China could be a seller of bonds to prop up the yuan. In the years ahead, financial markets around the world will have to live without the ever-present China bid. Whether China was a savvy investor or the dumb money, asset prices will likely be lower. —Aaron Back OVERHEARD Amazon.com is hardly known for penny-pinching, but, like many of its customers, the internet giant may be watching its bills heading into the holiday shopping season. That was suggested by a warning from Juniper Networks, which sells networking gear to companies that operate cloud computing networks. Late Wednesday, Juniper reduced its third-quarter revenue forecast by 5% at the midpoint. The company blamed lower-than-expected sales from its “cloud vertical,” which accounts for nearly 30% of revenue. Analysts believe the shortfall may be coming from Amazon. The operator of the AWS cloud service spent nearly $9 billion in capital expenditures and new capital leases in the first half, up 73% from the year-earlier period. Wall Street widely expects that to moderate. That is good news for Amazon shareholders. It doesn’t exactly put suppliers like Juniper on Cloud 9, though. Big Banks’ Card Woes Spell Trouble for Smaller Lenders J.P. Morgan Chase and Citigroup reported solid earnings Thursday, but also flashed a warning signal on consumer debt that investors in some other companies should heed. The two banks beat analyst expectations for both revenue and profit growth in the third quarter. Trading activity was weak, as expected, with fixed-income trading revenue declining 27% from a year earlier at J.P. Morgan and 16% at Citigroup. But this was more than offset by other areas of strength, including commercial lending growth at J.P. Morgan and international consumer Credit Stress Net charge-offs as a percentage of total loans, quarterly 5% Citigroup privatelabel cards 4 3 Citigroup branded cards 2 2016 ’17 Source: the company banking at Citigroup. Nevertheless, there was one area that deserves greater investor scrutiny, the continued deterioration in both banks’ U.S. credit-card portfolios. This is more of an issue for Citigroup, because its card business tilts more toward somewhat less prime borrowers. At J.P. Morgan, card charge-offs rose to 2.87% of total loans from 2.51% a year earlier. The bank stressed that this increase is well within its expectations. Citigroup, however, says losses are increasing slightly faster than it had expected. Cards carrying its brand, which generally target lessrisky borrowers, saw net charge-offs rise to 2.84% of total loans from 2.25% a year earlier. For its store-branded private-label cards, though, the ratio jumped to 4.7% from 3.9%. For next year, Citigroup expects charge-off rates of about 2.95% for its branded cards and 5% for its private-label cards. These levels of losses are easily manageable for megabanks like Citigroup and J.P. Morgan, but the fact that they are worse than anticipated at Citigroup is still worrisome for other lenders who focus more narrowly on credit-card lending. It is a reminder that companies have limited visibility into how loans will perform after consumers have loaded up on credit card, auto and student debt in recent years. Companies for investors to keep a wary eye on include Capital One Financial, Synchrony Financial and Alliance Data Systems. All three service less creditworthy borrowers, and the latter two focus on private-label cards similar to Citigroup’s. Shares of these three consumer lenders all fell by more than 2% Thursday, while Citigroup dropped 3.4%. Worries over credit defaults have dogged the consumer lenders for some time, driving weak shareprice performance for all three this year. The numbers reported by their bigger rivals on Thursday suggest these worries are unlikely to fade soon. —Aaron Back though they don’t benefit from tax exemptions. Despite high demand in both the U.S. and abroad, munis are in fairly short supply. Municipalities this year have issued $276 billion in new bonds as of last week, down 18% from this time last year, according to Thomson Reuters. The state of Massachusetts has sold about $1.7 billion in general-obligation bonds this year, half the amount it had issued by this time last year, according to Municipal Securities Rulemaking Board data. The drop-off comes as cities and states are doing far fewer refinancing deals this year; many governments typically refinance before a new presidential administration, to head off potential uncertainty, said Matt Fabian, a partner at Municipal Market Analytics. One of the few hiccups to the rebound in prices this year was in September. Since last month, bond prices have fallen slightly alongside Treasurys after the Federal Reserve signaled it remained on course to steadily raise interest rates. But that dip barely dented the upward trend in muni prices since January. Some bondholders were relieved after a Trump infrastructure plan that could have diverted the assets of large infrastructure investors away from muni bonds didn’t materialize. Given that failure, the inability to repeal the Affordable Care Act and other setbacks for the Trump administration, investors became increasingly confident big changes weren’t coming from Washington this year. “As the year has worn on, there has been this understanding that these things, if they happen, they’re not going to happen any time soon, and they may not happen at all,” said Gary Gildersleeve, partner and portfolio manager at Evercore Wealth Management. WSJ.com/Heard Inconvenient Truths About Seven & I More than a year after one of the U.S.’s best-known investors scored a rare win in a Japanese boardroom tussle, inconveniences remain at the operator of convenience store chain 7Eleven. In April last year, activist investor Daniel Loeb ousted the veteran 83-year-old chief of Japan’s Seven & I Holdings. Ryuichi Isaka, an internal candidate backed by Mr. Loeb, subsequently became the retail company’s boss. Mr. Loeb said Mr. Isaka had been instrumental to the success of the company’s 7Eleven operations in Japan. Mr. Loeb seems to have made the right choice. Seven & I reported Thursday a better-than-expected 10% increase in operating profit for the quarter ended in August. That was mostly due to a strong performance in North America, where operating income increased 17%. The company is expanding in the U.S. In April, it said it would acquire more than 1,000 convenience stores and gas stations there from Sunoco for $3.3 billion. The deal will help the company to achieve its goal of having 10,000 stores in North America by 2019. But Mr. Isaka needs more than running successful convenience store businesses. Seven & I still has substantial businesses in department stores, superstores and mail-order services, which are barely making any profit. Those businesses are locking up cash that could be deployed in its convenience stores. Seven & I’s share price has barely changed since Mr. Loeb kicked out the old boss. More aggressive changes are needed to make the victory truly count. —Jacky Wong OWEN GILDERSLEEVE For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com HOMES | MARKETS | PEOPLE | UPKEEP | VALUES | NEIGHBORHOODS | REDOS | SALES THE WALL STREET JOURNAL. © 2017 Dow Jones & Company. All Rights Reserved. | FIXTURES | BROKERS Friday, October 13, 2017 | M1 HIGH-RISE LIVING & DESIGN Condos Go Business Class CLOCKWISE FROM BOTTOM: DOROTHY HONG FOR THE WALL STREET JOURNAL (2); WILLIAMS NEW YORK (2) Developers are turning century-old New York office buildings into residential condos, hoping to dazzle buyers with a slice of history: Want to live in the Woolworth Building? FROM BANK TO BEDROOMS The Chetrit Group is converting the former New York headquarters of the Emigrant Industrial Savings Bank. Architect Jeremy Singer says the conversion of the Beaux-Arts building, designed by Raymond F. Almirall, was made easier by its H-shaped structure, which allows better access to sunlight with triple exposures in some apartments. BY KATHERINE CLARKE HARRY MACKLOWE remembers his first trip to One Wall Street more than 50 years ago, for a meeting to discuss his account at the Irving Trust Company bank. He recalls entering a double-height lobby bathed in a red tile mosaic by Hildreth Meière, a prominent muralist in her day, and being ushered up to an executive suite at the pinnacle of the building, with a towering glass window overlooking New York harbor. The ceiling was embellished with shells from the Philippines. “I was a much younger man and I was overwhelmed by it,” says Mr. Macklowe. Mr. Macklowe, 80, is back, this time leading a group that is converting the nearly century-old office building into 566 luxury condominiums. Mr. Macklowe isn’t alone in seeing value in Please turn to page M6 A MILE-HIGH BUILDING BOOM Luxury apartment buildings are climbing fast in Denver. As the skyline gets crowded, developers offer new incentives to stand out. A BOOMING TECH industry and strong job market have fueled an apartment-building frenzy in the midsize, milehigh city of Denver. Neighborhoods once filled with rundown 19th-century warehouses, modest apartment complexes and vacant lots have transformed into landscapes of glass, brick and steel, as new structures continue to climb. Standing on the 12th-floor roof deck of the Alexan UpPlease turn to page M8 RYAN DAVID BROWN FOR THE WALL STREET JOURNAL BY CANDACE JACKSON GOING UP Construction cranes dot the Denver landscape. Above, the skyline as seen from LoHi, or lower highlands district. INSIDE SVEINUNG BRATHEN FOR WSJ NORTHERN EXPOSURE An island home off of Norway, built to coexist with the water M3 REBECCA MCALPIN FOR WSJ MERCEDES RUEHL The trunk of old clothes that inspired an Oscar winner M14 To learn more, visit netjets.com or call a Private Aviation Concierge at 1-877-JET-2017. NetJets is a Berkshire Hathaway company. Aircraft are managed and operated by NetJets Aviation, Inc. NetJets is a registered service mark. ©2017 NetJets IP, LLC. All rights reserved. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com M2 | Friday, October 13, 2017 THE WALL STREET JOURNAL. NY MANSION PRIVATE PROPERTIES Fernando Botero Lists in New York Timeless Traditions Meet Modern Living 121 Marina • Starting from upper $4 million Merging modern luxury with the traditions of Ocean Reef. • Three- to Six-Bedroom Luxury Residences • Located Adjacent to the Club’s 175-slip Marina • Smart Home Technology and First-Class Amenities • Expansive Terraces with Sunset Views From slips to beautiful oceanfront estates, Ocean Reef Club offers an array of residential choices to compliment your lifestyle. NEW HOMES • VILLAS • CONDOMINIUMS M A R I N A D O C K S • V I L L A & H O M E R E N TA L S Equal Housing Opportunity Colombian artist Fernando Botero is putting his longtime Manhattan home and art studio on the market for $6 million, according to his daughter Lina Botero. Mr. Botero, who hails from Medellín, is known for his sculptures depicting oversize human and animal characters, which have been displayed prominently in locations such as New York’s Time Warner Center and on the Champs-Élysées in Paris. One of his pieces, “El Gato,” an oversize bronze of a cat, used to sit outside the building, at 900 Park Avenue on the corner of East 79th Street, but was later sold to a museum. The 2,123-square-foot apart- AUCTION PACIFIC PALISADES SPEC HOUSE LISTS FOR $20 MILLION NOVEMBER 15 A TECH ENTREPRENEUR LISTS TWO MONTANA RANCHES SCENIC RYE ESTATE ON 4+/- ACRES 3 Club Road, Rye, NY Potential 3-Lot Subdivision On Prestigious Apawamis Club Grounds • 13,650+/- SF Home in Exceptional Condition • 7 Spacious Bedrooms, 8 Full & 3 Half Bathrooms • Separate Caretaker Apartment • 5-Car Heated Garage, Pool, Theatre, Game Room & More • Renovated and Expanded in 2009 • 1/2 Mile Walk to Train and Downtown Live in This Exceptional Estate or Use Subdivision to Generate Income! MadisonHawk.com/Auctions/Rye 800.547.1045 ment is a combination of two units, comprising two bedrooms, 3½ bathrooms and an art studio. It has views of Central Park. Mr. Botero’s art is on display around the apartment, including a large painting of a chubby naked woman with red earrings clutching a pink towel in her bathroom, listing pic- A technology entrepreneur is putting his two central Montana cattle ranches on the market for $14.5 million and $14.95 million. The sellers are Bill Cruz and his wife, Patricia. Mr. Cruz, 56, co-founded a software trading firm, later called TradeStation Group, with his younger brother. The company was sold to Monex Group for $411 million in 2011. Near White Sulphur Springs, Eagle Creek Ranch includes more than 4 miles of Eagle Creek, 6,910 deeded acres and approximately 7,540 acres that are U.S. Forest Service grazing allotments. There is an approximately 2,000square-foot log home, a horse barn and a metal shop. This ranch is asking $14.95 million. Eagle Creek was going to be the couple’s “forever place” said Mr. Cruz, until he was visiting a friend about 175 miles away and saw Bull Mountain Ranch, which he bought in 2007 to add to his holdings. The roughly 15,600-acre Bull Mountain ranch has about 9,800 deeded acres and 5,800 acres that are part of a 40-year lease (more than 35 years are left on the lease, said Mr. Cruz). It has a log cabin more than 2,000 square feet. Randy Shelton and Joel Leadbetter of Hall & Hall share the listings. —Sarah Tilton A newly built European farmhouse-style home in Los Angeles’ Pacific Palisades is slated to go on the market for $20 million. On a 1-acre site surrounded by towering redwood and sycamore trees, the main house totals 14,000 square feet with 10 bedrooms, nine bathrooms and two half-bathrooms. Clad in wood siding, the house consists of two wings joined by an interior footbridge. The master suite spans the entire second floor of one wing, while additional bedrooms sit on top of the other. There is also covered garage parking for up to 10 cars, a 20-foot pool, a bocce court and a children’s tree house. In Rustic Canyon, which is known for its horse farms and ranches, the property borders Will Rogers State Park, a popular destination for horseback riding. The home was built by design and development team Eliana and David Rokach, who bought the site for $3.7 million in 2015, according to public records. The couple previously built another Palisades property, which they sold last year for $6.79 million. The property is listed by Aaron Kirman of John Aaroe Group and Santiago Arana of The Agency. —Katherine Clarke See more photos of notable homes at WSJ.com/Mansion. Email: email@example.com Luxury Estate Auction On-line – No Buyer’s Premium 129 Rumson Road, Rumson, NJ NEW CONSTRUCTION Just Blocks to Beaches and Marinas 10 Minutes from Wall Street Ferry 6,600 • 1.58 Acres • 6 Bedrooms (luxurious master suite plus 5 spacious bedrooms) 7 Baths • Stunning gourmet kitchen with custom inset cabinetry and professional-grade appliances Great room with fireplace • French doors to covered porch overlooking grounds Extensive custom millwork 1,000-Bottle temperature-controlled wine cellar 1,000 Heated 3-car garage Open House This weekend, 1–4p Private Appointments/Contact Info 732-842-2110 Video Tour and Details 129rumsonroad.com THIS HOUSE IS BEING OFFERED AT AUCTION EXCLUSIVELY BY THE DEVELOPER. DEVELOPER RESERVES THE RIGHT TO ACCEPT OR DENY ANY OFFER. PREVIOUSLY LISTED FOR $3,375,000. MINIMUM BID: $2,850,000.THIS AUCTION IS NET TO THE BIDDER WITH NO BUYER'S PREMIUM. NO COMMISSIONS WILL BE PAID BY DEVELOPER. BUYERS WILL BE RESPONSIBLE FOR ALL CLOSING COSTS DUE FOR THE PURCHASE OF REAL ESTATE IN NEW JERSEY. FROM TOP: YOO JEAN HAN; HALL AND HALL (2); BLAKE WORTHINGTON To receive a copy of our Real Estate Guide and learn more about this private club community, call 305.367.6600 or visit OceanReefClubLiving.com tures show. Other pieces rest against the walls alongside Mr. Botero’s painting materials. The pieces won’t be included in any sale, Ms. Botero said. The artist, 85, bought the first unit in 1980 and added the second in 1989, according to property records. He bought the apartment when he was living in Europe and would visit two or three times a year, tapping Colombia-born New York architect Juan Montoya to design the space, Ms. Botero said. Mr. Botero lived in New York beginning in the 1960s but more recently has spent his time in Europe. He is based primarily in Monaco, Ms. Botero said. She said he is selling the apartment because he is busy with exhibitions in Europe, and finds it harder with age to make the long trip to the U.S. Listing agent Serena Boardman of Sotheby’s International Realty said the building is a rare instance of a condominium in the heart of the Upper East Side residential district, which is dominated by cooperatives. —Katherine Clarke THE WALL STREET JOURNAL. Friday, October 13, 2017 | M2A NY Uptown. 1125 Park Avenue Impeccably renovated 9-room, triple mint corner residence in Carnegie Hill's most sought after co-op building. | $6,950,000. Ana Centola, 212.439.3802, Lisa Larson, 917.678.7042 444 East 86th Street 300 Central Park West Rarely available, beautifully renovated, sun-ﬁlled 3BR, 3BA penthouse with stunning city and river views. | $3,150,000. Claire Groome, 212.464.8269 Lovely 3BR, 3BA at the El Dorado w/ south views overlooking a beautiful tree-lined street. | $3,995,000. Linda Reiner, 212.439.4538 Lisa T. Deslauriers, 212.439.5182 1133 Park Avenue 444 Central Park West Gracious prewar 7-room residence in the heart of Carnegie Hill with a sun-ﬁlled LR facing a beautiful tree-line street. | $2,595,000. Wendy Greenbaum, 212.439.4542 Elegant prewar residence perched on a high ﬂoor in a full-service Art Deco building with a private terrace. | $1,750,000. Svetlana Choi, 212.327.9619 45 East End Avenue 40 East 78th Street 19 East 88th Street 124 East 84th Street 164 West 79th Street Sun-ﬂooded & oversized, mint 6RM home w/ sweeping river views & a private terrace. | $2,595,000. Susan Landau Abrams, 212.439.4537 Michael Abrams, 212.439.4559 Stylish 705 sq. ft. home thoughtfully redesigned into a large 21"x 23" open loft space. | $1,675,000. June L. Gottlieb, 917.826.9996 Allison Chiaramonte, 646.248.0193 Gracious and bright one-bedroom home with a private, planted terrace that runs the length of the entire apartment. | $1,375,000. Ellen Z. Wedeles, 917.880.0147 Elegant 2-bedroom, 1.5-bath home on a beautiful & quiet tree-lined street. | $1,250,000. Bill Kowalczuk, 212.300.1846 Brett Compton, 212.300.1848 Beautiful & bright 2-bedroom, 1.5-bath pre-war home with breathtaking views. | $1,650,000. Jason Haber, 212.327.9624 Deborah Ribner, 917.593.2232 Downtown. 225 Lafayette Street 81 White Street Rarely available 3BR, 3.5-bath corner condo on a high ﬂoor in the Cass Gilbert's Beaux Arts SPRING building. | $5,100,000. Ugo Russino, 347.701.9969 Spacious 2,100 SF home that oﬀers true Tribeca loft living at its ﬁnest. Can easily be restored to its original 3BR layout if desired. | $2,575,000. Gabriel Leibowitz, 917.312.5624 10 West Street 15 Broad Street 50 Franklin Street Sprawling sun-drenched 2-bedroom, 2-bath home on a high ﬂoor with stunning north & west views. | $2,495,000. Renaud De Tilly, 347.614.6070 Sunny & cheerful one bedroom residence with 9-foot ceilings, ﬂoor-to-ceiling windows in a fullservice condo. | $1,395,000. Dorothy Schrager, 917.691.7353 Ultra-luxurious 4-bed, 4.5-bath condo perched on top of the Ritz-Carlton Residences downtown with spectacular waterviews from every room. $12,500,000. | Herbert Chou, 212.380.2417, Natalya Bowen, 212.380.2405 warburgrealty.com upper east side | 654 Madison Ave., NY, NY 10065 | 212.439.4500 flatiron | 18 West 21st Street, NY, NY 10010 | 212.300.1850 tribeca | 124 Hudson Street, NY, NY 10013 | 212.380.2400 Warburg Realty Partnership LTD, as the Exclusive Agent, represents the seller of this property. All information in this document is from sources deemed reliable but is subject to errors, omissions, or changes without prior notice. No representation is made as to the accuracy of ! " # For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com M2B | Friday, October 13, 2017 THE WALL STREET JOURNAL. NY THE UPPER EAST SIDE’S MOST VA LUA B L E A D D RESS The Extell tradition of world-class ﬁnishes and high quality construction continues on the Upper East Side with The Kent. Gracious, family-sized homes designed by Alexandra Champalimaud and Beyer Blinder Belle are complemented by custom oversized windows that feature Park to River views and 10’-15’ ceiling heights. Three levels of amenities include a grand two-story lobby, an indoor pool, private ﬁtness center, The Sound Lounge, Camp Kent playroom, and multiple salons for entertaining. BAT HROOM 4 R ESIDENCE 9 B 4 B E D R O O M S 4 . 5 B AT H R O O M S 2 ,7 3 5 S Q F T BE D RO O M 4 S TA RT I N G F R O M $ 6 ,0 7 7,0 0 0 W/D OVEN & SO POW D E R ROO M DW DW COMMON CH A RG ES WITH 421-A TA X A B AT E M E N T: $ 1 . 3 1 P E R S Q F T CL FOYER CL KITCHE N CL F R R EF WINE D L IVIN G & D IN IN G ROOM MAST ER BATH BATHROOM 3 BAT H RO O M 2 CL WIC B E D ROOM 3 MASTER BEDROOM CL B E D ROOM 2 KITCHEN M A S T E R B AT H R O O M INDOOR SWIMMING CAMP KENT O CC U PA N CY 2 0 1 7 | LOW CA R RY I N G COSTS Two to Five Bedroom Condominium Residences from $2.7M Sales Gallery Open by Appointment 1450 Lexington Avenue 2 1 2 . 9 2 2 . 9 5 9 5 • T H E K E N T N Y C .C O M All dimensions are approximate and subject to normal construction variances and tolerances. Square footage exceeds the usable floor area and includes columns, mechanical pipe shafts, shaftways, chaseways, conduits and other common elements. Plans and dimensions may contain minor variation from floor to floor. Units will not be offered furnished. Furniture layouts shown are for concept only and are not coordinated with building systems. Sponsor reserves the right to make changes in accordance with the terms of the Offering Plan. The complete offering terms are in an offering plan available from Sponsor. File No. CD15-0238. Sponsor: 95th and Third LLC. 805 Third Avenue, Seventh Floor, New York, NY 10022. All images are a combination of photography and artist renderings. Equal Housing Opportunity. Brand by Williams New York. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | M3 CLOCKWISE FROM TOP LEFT: KNUT HJELTNES ARCHITECTS AS; SVEINUNG BRÅTHEN FOR THE WALL STREET JOURNAL (3) MANSION BALANCE SHEET A Second Home Makes Waves KEY COSTS Island A Norwegian family builds a vacation oasis on a tiny, sea-swept island $62,400 Architect’s fee $162,200 Additional furniture $75,000 Fireplace, heating, ventilation $40,000 Bathrooms ANCHORED Peter and Marianne Straume built a maritime home adapted to its island setting. A staircase accommodates rising waters and steel table legs resist rust. BY J.S. MARCUS A TINY, EXPOSED ISLAND off the far-west coast of Norway may be blessed with beautiful surroundings, but it also is at the mercy of punishing storms. So it is an unlikely place to build a year-round, multimillion-dollar vacation home. A Norwegian couple, Peter and Marianne Straume, however, did just that on the one-third acre of land, located off the coast midway between the cities of Bergen and Trondheim. They relied on construction techniques usually reserved for large ships and oil rigs. The three-story, 3,875-squarefoot, four-bedroom, 2½-bathroom house takes up much of the islet. It was built on a bigger island near the area’s main city, Alesund, transported whole by barge, lowered by crane onto a foundation, and welded and cemented into place. The Straumes and their sons— Harald, 16, and Arthur, 13—moved into the house in spring 2016. To date, the couple has spent about $2 million on the project. Only accessible by water, the house—set amid various-size inhabited islands and a network of fjords—required an investment in boats. A 13-footer is used to reach the nearest island, which also is accessible by car from the mainland. A larger boat takes them to get supplies in a nearby harbor town or to the airport—a 30-minute trip including the stretch in open waters. The family lives in Oslo and also THE AIR owns a ski cabin. They use their island house about 50 days a year, from longer family stays in summer when the sun shines until 11 p.m., to ski-filled winter weekends when Mr. Straume and friends head to nearby slopes by boat. The house is built to withstand hurricane-force winds and flooding. But the sea is seen less as a threat than as a source of comfort, amusement and sustenance. Mr. Straume compares his home to an aquarium. It is surrounded by water and sky, and he can gaze at seals, otters, porpoises and jumping salmon, to name a few of nature’s offerings. He also can enjoy snow-topped mountains and the Northern Lights. Mr. Straume, 46, an investment banker, gathers crabs and, when in season, lobsters from his traps, boils them in seawater and serves them for lunch along with the dry, white Burgundy wine he keeps on hand. “I like to think of the sea as my backyard,” he says. In calm weather, he and his wife, a 44-year-old Oslo civil servant, relax in their outdoor sitting area, or on one of their home’s three terraces. They can even enjoy the outdoors in rough weather. The home is covered in a weather-resistant, lattice facade made of kebony, a Norwegian wood product that simulates the durability of tropical hardwood. It forms an adjustable shell around the house, so that when a storm is pounding one side, the family can keep the house open at the opposite end. “The whole concept is that ev- IS DIFFERENT $150,000 Kitchen $50,000 Boats $78,000 erything can be open, depending on where the sun is or the wind is,” Mr. Straume says. The first floor has an open-plan kitchen, with Gaggenau appliances, designed by the couple’s Oslo architect, Knut Hjeltnes. Nearby, a utility room is fitted with a metal hatch, typically used on large vessels, that can create a waterproof seal during flooding. It cost $3,700. In another concession to potential rising waters, Mr. Hjeltnes designed a striking staircase that doesn’t touch the floor. Nearby, a custom-built teak dining table has rust-resistant steel legs. Bedrooms are divided between two wings. The master bedroom and the boys’ room are above the living room, and two smaller bedrooms for guests are above the outdoor dining area. Instead of curtains or sliding doors, showers are equipped with LED-lit walls. The top floor is a large unheated attic useful for large gatherings. The Norwegian coast has a moderate climate, with temperatures around 50 degrees on any given day, so Mr. Straume also can use the space to store wine. The sea is less than 20 feet deep here, and the family gets water and electricity via underwater cables and pipes connected to the nearby settled island, about 300 feet away. “Digging is expensive but going through water is easy,” Mr. Straume says. A high-bandwidth radio link allows the family to stream shows in their second-floor sitting room, where a pull-down screen converts the space into a home cinema. Built on the site of a 19th-cen- tury boathouse that blew away in a storm in the early 1990s, the project started in 2009 when Mr. Straume—who has family in the area—bought the islet. Securing permission for a home involved years of negotiations with planning commissions—and a streak of good luck. In the end, approval to proceed came when officials missed a notification deadline, leading to a decision in the Straumes’ favor. Five years later, the family saw the inside of the house for the first time. “I was quite emotional,” says Mrs. Straume. “We had seen the drawings, and the architect had explained everything, but it was difficult to imagine. When we came in, it was like ‘Wow, this is what he meant.’ It was a great feeling.” HERE There’s Kiawah Island. Then there’s Timbers Kiawah. 21 unique oceanfront residences. Surrounded by pristine nature, good food and world - class golf. Served up fresh with a whole new take on Lowcountry hospitality. You’ll find that everything’s different here. Including you. T I M B E R S K I AWA H Kiawah Island, SC | TimbersKiawah.com/mansions | 843.689.7802 TIMBERS COLLECTION Bachelor Gulch Aspen Cabo San Lucas Jupiter Kaua‘i Kiawah Island Maui Napa Scottsdale OCEAN CLUB & RESIDENCES Snowmass Sonoma Southern California Steamboat Tuscany U.S. Virgin Islands Vail This advertisement does not constitute an offer to sell nor the solicitation of an offer to purchase made in any jurisdiction nor made to residents of any jurisdiction, including New York, where registration is required and applicable registration requirements are not fully satisfied. Timbers Kiawah Acquisition Partner, LLC uses the Timbers Resort,® Timbers Collection® and certain other Timbers brand names under a limited non-transferable license in connection with the sales and marketing of the Timbers Kiawah Ocean Club & Residences (the “Project”). If this license is terminated or expires without renewal, the Project will no longer be identified with nor have any right to use the Timbers® marks and names. All renderings depicted in this advertisement are illustrative only and may be changed at any time. All rights reserved. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. M4 | Friday, October 13, 2017 HIGH-RISE LIVING & DESIGN Completed in 2016, Patch22, a 26-unit apartment building, tops out at just under 100 feet. According to architect and developer Tom Frantzen, its wood-based cladding and framing were intended to make it stand out in a sluggish housing market. “No one was buying homes, so we knew we had to do something different,” he said. “Building in wood would attract what we called the crazy people, and we thought, there must be some crazy people in Amsterdam even during the crisis. Which turned out to be true.” Apartments in the building (originally sold as raw space) ran about $300 per square foot. Resales are going in the range of about $645 per square foot. INTO THE WOODS Builders are turning to timber for a new generation of mid-rise buildings ONE OF THE NEWEST materials in mid-rise residential and office construction comes from an old source: trees. With the emergence of cross-laminated timber, or CLT, and nail-laminated timber (think plywood, but much thicker and stronger), architects are able to design buildings of 10-to-12 stories or more with timber cores and panels. While engineered wood hasn’t entirely replaced steel, reinforced concrete or masonry in mid-rise construction, some builders say the cost savings and environmental benefits make timber a good alternative for many uses. Here’s a look at buildings around the world built using engineered wood. —Adam Bonislawski MELBOURNE LONDON Forté, a 10-story, 23unit building in Melbourne’s Victoria Harbour neighborhood, was Australia’s first timber mid-rise when completed in 2012, according to developer Lendlease. The building uses European spruce grown in Austria and made into cross-laminated panels. Each unit comes with its own vegetable garden. Light but sturdy, CLT panels can be transported relatively easily, which opens up new possibilities around modular construction. Case in point: the Cube, a 108-foot hybrid timbersteel apartment structure built in the Shoreditch neighborhood in 2015. According to the developer, Regal Homes, the building’s CLT panels were constructed in Austria, then trucked to the build site and assembled according to a computer model of the project. Apartments in the building range from about $1,260 to $1,575 per square foot. PORTLAND, ORE. VIENNA Austria is one of the biggest producers of CLT and Vienna is the site of one of its most ambitious projects. Upon completion (projected for 2018), Vienna’s timber-andconcrete HoHo building will rise 24 stories—considerably taller than most other timber structures—and feature short-term rental units, along with a hotel and restaurant. In June, the city issued building permits for the Framework Project, above, a 12-story (148-foot) building constructed mainly with sustainably harvested engineered lumber. To get the permits, developers had to submit designs that passed rigorous fire, seismic and other safety tests to prove its durability was comparable to typical steel-and-concrete construction. Scheduled for completion in early 2019, Framework will house 60 affordable apartments along with a mix of retail and office space. Portland is also home to Carbon12, an eight-story steel-and-timber condo building that topped out this spring. The development features 14 apartments ranging in price from around $800,000 to $1.5 million and includes direct elevator access to each unit along with automated underground parking. WSJ TALK / E XPERIENCE / OFFER / G ETAWAY Win a Countryside * Retreat Escape from the pressures of everyday living with three nights at the Grace Mayﬂower Inn and Spa in Connecticut. During your stay, enjoy a chef’s tasting dinner, spa treatments and nature with hiking, biking and more in the resort’s 58 beautiful acres of woodland. EXCLUSIVE TO WSJ MEMBERS ENTER TO WIN AT WSJPLUS.COM/GRACEMAYFLOWER *No purchase necessary. Void where prohibited. If you subscribed to The Wall Street Journal after October 6, 2017 you will not be eligible to win. Open only to legal residents of the 50 United States (and D.C.), or Canada (excluding the Province of Quebec), age 18 and over. Any resident of Canada whose entry is selected in the random draw must correctly answer, unaided, a time-limited mathematical skill testing question to qualify as a winner of the prize. For ofﬁcial rules, including prize description and odds, visit wsjplus.com/ofﬁcialrules. Sponsor: Dow Jones & Company, 1211 6th Avenue, New York, NY 10036. © 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ6053 CLOCKWISE FROM TOP: LUUK KRAMER; LEVER ARCHITECTURE (RENDERING); REGAL LONDON; RÜDIGER LAINER + PARTNER ARCHITECTS (RENDERING); LENDLEASE AMSTERDAM ELEMENTS For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | M5 PALM CAY, BAHAMAS PARADISE ISLAND, BAHAMAS ST. BARTH, CARIBBEAN BELvEDERE, CALIFORNIA LAGUNA BEACH, CALIFORNIA Enjoy exquisite beach views and tranquil ocean breezes from this luxurious 4 bedroom, 3.5 bath, 2,000 sq. ft. townhouse located in the gated beachfront and marina community of Palm Cay. WEB: QRBN64. $1,475,000 US. firstname.lastname@example.org Reef At Atlantis. Seize the chance to own this stunning condo in one of the world's most celebrated resorts. This 14th floor, 2 bedroom, 3 bathroom unit enjoys incredible views of Paradise Beach. Resort amenities. WEB: 30704. $1,195,000 US. Nick.Damianos@SIR.com St. Barth’s most spectacular estate. 9 bedrooms including a caretaker residence. Panoramic views including the islands of Saba and Statia and year round sunsets. Private five bedroom main residence, two bedroom guest house, and two pools. €46,000,000. email@example.com This French country-inspired home is defined by grand, light-filled living spaces, manicured stepped grounds and panoramic views spanning from the San Francisco skyline to the Golden Gate Bridge to Mount Tamalpais. $7,200,000. Bill Bullock and Lydia Sarkissian. Spectacular home on iconic Laguna surf beach with endless Pacific views. Spacious, with custom craftsmanship, designed for luxury living and entertaining with 4 bedrooms, 5 baths. Desirable Laguna Village area. $13,500,000. John Stanaland. firstname.lastname@example.org Damianos Sotheby’s International Realty +1 242.457.2282 | SIRbahamas.com Damianos Sotheby’s International Realty +1 242.376.1841 | SIRbahamas.com St. Barth Properties Sotheby’s International Realty +1 508.570.4481 | sothebysrealty-stbarth.com Golden Gate Sotheby’s International Realty +1 415.517.7720 | globalestates.com HÔM Sotheby’s International Realty +1 949.689.9047 | homgroup.com SAN DIEGO, CALIFORNIA SAN DIEGO, CALIFORNIA SAN DIEGO, CALIFORNIA The 20,000 sq. ft. home on 8+ acres is designed for entertaining on a corporate or personal level. Indoor swimming pool, massage room, theatre, vineyard and wine room. Freestanding office building for business needs. Easy access to airports make the home a perfect West Coast hub. $68,000,000. Michael Dreyfus. Mid-century style Sim Bruce Richards designed oceanfront compound with pool. Impressive layers of wood, brick, stained glass, stone masonry and floor to ceiling windows frame the waterfront deck. $17,950,000-$19,950,000. Eric Iantorno, Kathy Herington and Clinton Selfridge. Sophisticated and inspiring, this Venetian style new construction embodies the finest attributes of waterfront living along with views from La Jolla to Dana Point. $8,950,000. Clinton Selfridge and Eric Iantorno. Private, Cape Cod Style Bokal and Sneed designed home with panoramic ocean views. Generous outdoor living spaces including a pool, spa and garden. Breathtaking details throughout and walking distance to town. $7,450,000. Eric Iantorno and Clinton Selfridge. Built by the Helms Family early in the 20th Century, this seaside American Lodge in La Jolla emanates a life well lived and much enjoyed. This home offers a unique, warm and comforting lifestyle, with 180-degree coastline views $3,250,000-$3,650,000. Brett Dickinson. Golden Gate Sotheby’s International Realty +1 650.485.3476 | ggsir.com Pacific Sotheby’s International Realty +1 858.256.7005 | PacificSothebysRealty.com Pacific Sotheby’s International Realty +1 858.256.7005 | PacificSothebysRealty.com Pacific Sotheby’s International Realty +1 858.256.7005 | PacificSothebysRealty.com Pacific Sotheby’s International Realty +1 858.822.9699 | PacificSothebysRealty.com LOS ALTOS HILLS, CALIFORNIA SAN DIEGO, CALIFORNIA ISLAMORADA, FLORIDA KEY LARGO, FLORIDA KEY LARGO, FLORIDA PALM BEACH, FLORIDA PUMPKIN KEY, FLORIDA Bayfront estate on 1.72 acres with over 100 ft. of bay frontage and panoramic bay views. The historic former estate of baseball legend, Ted Williams, boasts 4 bedrooms, 4 baths, designer kitchen and infinity edge pool. $3,800,000. Cheri.Tindall@sothebysrealty.com Exceptional Ocean Reef family compound with 6 bedrooms, 7.5 baths and adjacent guest house with additional 2 bedrooms, kitchenette and living room. Magnificent courtyard pool, unobstructed views of Angelfish Creek & Card Sound Bay, and 70 ft. dockage. $8,500,000. Helena.Morton@sothebysrealty.com Situated on two lots with 151 ft. of bayfront and spectacular bay views. Main home offers open floor plan, 3 bedrooms, 3 baths, sparkling swimming pool, summer kitchen with cabana bar, separate guest house, two docks and two boat lifts. $2,499,000. Donna.Webb@sothebysrealty.com Trophy Ranch 3,640± acres. Full amenity hunting ranch, farm, corporate retreat or development opportunity. 5 bedroom lodge with swimming pool. Private lake, dock and landing strip for the ultimate in convenience. Outbuildings. Price upon request. Wally Turner. Florida Keys private island just 3 minutes by boat to shore accommodations in Ocean Reef. Self sufficient with water/electric in place from shore to 12 large bay front lots. Currently, featuring 1 main home, 2 caretaker's cottages and 20-slip marina. $95,000,000 Russell.Post@sothebysrealty.com Ocean Sotheby’s International Realty +1 305.712.8888 | OceanSIR.com Russell Post Sotheby’s International Realty +1 305.367.2027 | RussellPostSIR.com Ocean Sotheby’s International Realty +1 305.712.8888 | OceanSIR.com Sotheby’s International Realty Palm Beach Brokerage +1 561.301.2060 | sothebyshomes.com/palmbeach ANNAPOLIS, MARYLAND Russell Post Sotheby’s International Realty +1 305.367.2027 | RussellPostSIR.com KAPAA, KAUAI, HAWAII BARRINGTON, ILLINOIS CHICAGO, ILLINOIS Now you can own two contiguous beachfront parcels on Kauai’s Coconut Coast with beach, ocean, whitewater and coastline views. Both parcels are being sold together. This is not a CPR. Build one spectacular estate or two full size homes. $2,400,000. Paul Kyno. Paul@oceanfrontsir.com Presenting Hidden Ponds, a 30,000 sq. ft. estate, set on 70 rolling acres, in the heart of Barrington Hills, a prestigious horse community. The property has ample room to display art, collect cars, add a helipad. Located in Chicago’s NW suburbs, 30 mins to int'l airport and major thoroughfares. $14,888,000. Connie Antoniou. Extraordinary brand new condo boasts breathtaking, panoramic lake and city views, an incredible 72 ft. wall of windows and dramatic 13+ ft. ceilings. Over 4,300 sq. ft. of perfection, thoughtfully designed with the finest materials available. $4,450,000. Nancy Tassone. Historic Holly Beach Farm with its 1908 Georgian mansion, exquisitely renovated by acclaimed Arlene Critzos and Warnock Studios, is magnificently sited on a 26 acre oasis with 3/4 of a mile of waterfront and private beach. Over 10,000 sq. ft. of resort living. $10,000,000. Marc Fleisher. Brewster. Walk to Crosby Beach from this stunning 2 acre water view lot abutting 21 acres of conservation land. Great privacy and near Nickerson State Park with direct access to Cape Cod Rail Trail. Not in flood zone. $1,195,000. Daneen Law. email@example.com Oceanfront Sotheby's International Realty +1808.651.3287 | oceanfrontsir.com Jameson Sotheby’s International Realty +1 847.508.7775 | jamesonsir.com Jameson Sotheby’s International Realty +1 312.215.9701 | jamesonsir.com TTR Sotheby’s International Realty +1 301.967.3344 / 202.438.4880 | ttrsir.com oldCape Sotheby’s International Realty +1 208.237.0977 | oldcape.com JAMAICA PLAIN, MASSACHUSETTS NEWTON, MASSACHUSETTS HAMILTON, MONTANA CAPE COD, MASSACHUSETTS MISSOULA, MONTANA NEW YORK, NEW YORK Unique opportunity to build or renovate your family estate on 3.6 private acres. Extraordinary land that rarely comes to market. $3,900,000. Michael L. Carucci. Majestic home with 5 bedrooms, 7 full and 2 half baths, and a spectacular open floor plan. Luxurious amenities including an elevator, an in-home theater, and a wine cellar. Gracefully landscaped grounds. $6,900,000. Michael L. Carucci. 17 acre estate, 10 bedroom home, multiple private guest quarters. Unique features including grotto style pool, underground shooting range and 4 stall horse barn. Exclusive/private Stock Farm amenities include Tom Fazio golf course. $27,500,000. Dawn Maddux. Iconic 5 bedroom, 6 bath historic Victorian era home. Complete era specific remodel, sitting on 3 full city lots. Separate guest home, seasonal creek and beautifully landscaped. $2,275,000. Dawn Maddux. This 5 bedroom and 4.5 bath residence has been recently renovated and planned to perfection, making it ideal for luxurious entertaining as well as comfortable practical living. $7,430,000. Emmanuelle Ritchie. firstname.lastname@example.org Gibson Sotheby’s International Realty +1 617.901.7600 | GibsonSothebysRealty.com Gibson Sotheby’s International Realty +1 617.901.7600 | GibsonSothebysRealty.com Glacier Sotheby’s International Realty +1 406.550.4131 | glaciersir.com Glacier Sotheby’s International Realty +1 406.550.4131 | glaciersir.com Sotheby’s International Realty East Side Manhattan Brokerage +1 212.606.7655 | sothebyshomes.com/00111555 NEW YORK, NEW YORK NEW YORK, NEW YORK NEW YORK, NEW YORK BARRINGTON, RHODE ISLAND PROvIDENCE, RHODE ISLAND Move-in ready 4 bedroom, 3.5 bath duplex with approx 2,967 sq. ft. interior and approx 301 sq. ft. private outdoor terrace on the Upper West Side. $5,700,000. Colin Montgomery and Kevin B. Brown. A spacious, grandly-scaled, light-filled 3 bedroom, 3 full, 1 half bath corner residence in a convenient Sutton Place location. $3,395,000. Jeremy V. Stein. The Woolworth Tower Residences offers a club-like intimacy while surrounded by restaurants, hotels and shopping. This 3 bedroom offers over 14 ft. ceilings and 3,282 sq. ft. Price upon request. Stan Ponte and Joshua Judge. email@example.com Meticulously maintained 5 bedroom Tudor with recent renovations throughout. Well-appointed and filled with classic architectural details. Large backyard with blue stone patio, perfect for entertaining while also being completely secluded. $1,495,000. Sotheby’s International Realty Downtown Manhattan Brokerage +1 212.431.2427 | sothebyshomes.com/0139707 Sotheby’s International Realty East Side Manhattan Brokerage +1 212.418.1222 | thewoolworthtower.com Classic and refined c. 1914 stone and timber Tudor manor home set on 2.15 acres of lush grounds with colorful coastal gardens. The 6 bedroom, 4 .2 bath home is full of elegant period details. Wonderful Tudor carriage house provides additional living space. $2,550,000. Mott & Chace Sotheby’s International Realty +1 401.245.3050 | mottandchace.com Mott & Chace Sotheby's International Realty +1 401.314.3000 | mottandchace.com Sotheby’s International Realty East Side Manhattan Brokerage +1 212.606.7620 / 212.606.7748 sothebyshomes.com/00111609 CHARLESTON, SOUTH CAROLINA AUSTIN, TEXAS AUSTIN, TEXAS AUSTIN, TEXAS AUSTIN, TEXAS Oceanfront home on Isle of Palms with 6 bedrooms, 5+ bathrooms and over 6,700 sq. ft. of living space. 120 Ocean Blvd combines classic Mediterranean architecture with Low country oceanfront living at its best. $6,800,000. Middleton Rutledge. Exquisite contemporary designed to showcase unparalleled views of Downtown Austin and Lady Bird Lake and provide gracious space for entertaining. Private with beautifully landscaped grounds. The home is host to many exclusive affairs. $6,950,000. Kumara Wilcoxon. Highly sought after Old Enfield. Thoughtfully designed by Steve Kubenka, this French Normandy style home is truly one-of-a-kind. Designed to look as if it was built in the 20’s or 30’s, perfectly tying the home into the Old Enfield neighborhood style. $4,175,000. Kumara Wilcoxon. Gated European contemporary on 1.23 acres in West Lake Hills embraces the indoor/outdoor lifestyle. Gorgeous Terrazzo floors, La Cornue range, walls of sliding glass, vanishing edge pool and sculpture garden. Guest casita and 6 car garage. $3,750,000. Kumara Wilcoxon. A stunning Dick Clark one story contemporary built by Ohad Sagiv on a beautifully landscaped, 2 acre lot. Glass doors completely disappear into the walls for gracious indoor/outdoor entertaining. 4 car garage, beautiful pool and spa. $3,695,000. Kumara Wilcoxon. Daniel Raenel Sotheby’s International Realty +1 843.723.7150 | danielraenelsir.com Kuper Sotheby’s International Realty +1 512.423.5035 | 1404WildCatHollow.com Kuper Sotheby’s International Realty +1 512.423.5035 | 2307Windsor.com Kuper Sotheby’s International Realty +1 512.423.5035 | 513KonstantyCir.com Kuper Sotheby’s International Realty +1 512.423.5035 | 4017veranoDr.com © MMXVII Sotheby’s International Realty Affiliates LLC. a Realogy Company. All Rights Reserved. Village at Maurecourt, used with permission. Sotheby’s International Realty® is a registered trademark licensed to Sotheby’s International Realty Affiliates LLC. An Equal Opportunity Company. Equal Housing Opportunity. Each Office is Independently Owned and Operated. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com M6 | Friday, October 13, 2017 THE WALL STREET JOURNAL. F.S. LINCOLN; MILSTEIN DIVISION OF UNITED STATES HISTORY, LOCAL HISTORY & GENEALOGY, THE NEW YORK PUBLIC LIBRARY, ASTOR, LENOX AND TILDEN FOUNDATIONS(HISTORICAL); DOROTHY HONG FOR THE WALL STREET JOURNAL (3) HIGH-RISE LIVING & DESIGN THE COMPANY YOU KEEP Once the Irving Trust Company bank, One Wall Street is being converted into 566 luxury condominiums. According to developer Harry Macklowe, prices for the units will average between $2,500 and $3,000 a foot. The largest unit will be nearly 13,000 feet, which would translate to a purchase price of $39 million—but it could be even pricier since it is the penthouse. For Hot News aNd Gossip, it’s wHo’s oN tHe iNside tHat couNts! Continued from page M1 the romance of landmark New York office buildings. He is one of a small collection of developers who are betting they can dazzle wellheeled buyers by serving them opulent residences with a slice of New York history. Of particular interest are the nation’s first skyscrapers. From 1900 to 1930, the golden era of skyscraper construction, developers were fiercely competing to build taller and taller buildings: The Chrysler Building, the Empire State Building and the Woolworth Building all became permanent markers on the Manhattan skyline. Alchemy Properties’ conversion of the Woolworth Building is nearing completion: Its penthouse is seeking $110 million. Some conversions have already been successful. When Walker Tower, a conversion of an Art Deco, 1920s-era office building formerly occupied by Verizon, first launched sales in 2012, it set record prices, and all 50 of its units sold in about 14 months, according to the developer. A conversion of a former office tower at 212 Fifth Avenue has also attracted many well-heeled buyers, including real-estate developer Charles Kushner and Texas billionaire Ed Bass, according to people with knowledge of the deals. Another ambitious conversion under way is at the Crown Building. Just south of Central Park and near the Plaza Hotel, the Warren & Wetmore-designed building, built in 1921, is widely recog- LIVING AT THE OFFICE A group led by Russian real-estate billionaire Vladislav Doronin bought the top 20 floors of the Crown Building, shown below in photos from 1932, left, and 1928, right, for nearly $500 million last year. Plans are to create 20 residential units, some with terraces and pools. WATCH WEEKDAYS CHECK YOUR LOCAL LISTINGS PageSixTV.com FROM TOP: DOROTHY HONG FOR THE WALL STREET JOURNAL; MCNY/GOTTSCHO-SCHLEISNER/GETTY IMAGES (HISTORICAL EXTERIOR); BYRON COMPANY (NEW YORK, N.Y.) / MUSEUM OF THE CITY OF NEW YORK 184.108.40.20648 (INTERIOR HISTORICAL) BUSINESS CLASS For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | M7 HIGH-RISE LIVING & DESIGN FROM TOP: DOROTHY HONG FOR THE WALL STREET JOURNAL (2); BILL BARVIN/MILSTEIN DIVISION, THE NEW YORK PUBLIC LIBRARY (PHOTO COMPOSITE) THE EXECUTIVE SUITE This building was built for the Irish Emigrant Society, a bank for Irish immigrants, and was owned by the city until 2013. Residential units start at around $2 million, and sales launched last spring. nizable for its pyramidshaped copper roof, elaborate setbacks and French Renaissance-style detailing. Last year, a group led by Russian real-estate billionaire Vladislav Doronin bought the top 20 floors of the building for close to $500 million with a view toward turning them into homes, Mr. Doronin’s spokesperson confirmed. Meanwhile, the Chetrit Group, a developer, is converting the former New York headquarters of the Emigrant Industrial Savings Bank. The trend is a reflection in part of dwindling opportunities for developers to acquire vacant land in desir- able Manhattan locations and the fluctuating economics of the commercial and residential real-estate sectors. Over the past several years, as housing prices have risen, developers have found that they can make more money by selling units as residences than by leasing them to commercial tenants. In 2014, the year Mr. Macklowe’s company purchased One Wall Street for $585 million, the median condo price in New York was $940,000 for instance, up nearly 10% in a year, according to data from brokerage Douglas Elliman. While the prices at the very top of the luxury market have softened over the past few months, the balance of the market remains strong. In the third quarter, Manhattan sales were up by 23%, for apartments priced between $1 million and $4 million, according to a Wall Street Journal analysis. In many cases, office towers from the early 1900s lend themselves well to residential conversion. Since many were created before the advent of air conditioning, they were built on narrower footprints to allow for light and air. Modern-day office buildings are often so deep that large amounts of unused floor area are left in the center of the building once units have been configured around the periphery. Modern office buildings also have more space designated for elevator bays, which eats into residential floor plans and can result in off-kilter apartment layouts. Buildings from the 1920s also boast more architectural detailing and traditional windows. “It was before the advent of glass curtain wall towers, so the quality of the architecture is outstanding,” said Jeremy Singer of Woods Bagot, the architecture firm heading the conversion of the Emigrant building. Developers can still run into problems. The lower floors of One Wall Street and was owned by the city pose the greatest challenge until 2013. for conversion because their The units start at around footprint is deep, making it $2 million, according to a difficult to configure all the spokesperson for the Chetrit apartments with windows Group. Sales launched last without leaving a huge vaspring; the company decant space in the core of the clined to disclose how many building. Mr. Macklowe says units have sold. Homes feahe and architect Robert A.M. ture calico hickory hardwood Stern solved the problem by floors, curved and bay winplacing amenity spaces dows, and open kitchens. around the core of the build- Residents will also have acing’s lower floors. cess to a gym and a rooftop Mr. Macklowe says prices park with a lawn and trellis for the units will average be- seating. The project is curtween $2,500 rently in the and $3,000 a construction foot. The largphase and is est unit will be slated for comThe Crown nearly 13,000 pletion in 2018. Building will have feet, which Real-estate would pencil veterans warn a five-level out to upward only a few ofpenthouse that’s of $39 milfice buildings lion—but it are worth the nearly 13,700 could be even conversion efsquare feet. pricier since it fort. “It’s very is the penthard to retrofit house, he says. buildings,” says In the case of the Crown Donna Olshan, a luxury realBuilding, Mr. Doronin plans estate agent. “With few exfor just 20 residential units, ceptions, and unless it’s a some with expansive terraces very special building, new and private outdoor pools to product is always better.” capitalize on the setbacks, Mr. Macklowe said he was his spokesperson confirmed. unimpressed by one such The five-level penthouse will plan by the Chetrit Group to encompass nearly 13,700 convert the Sony Building at square feet, with a master 550 Madison Avenue, with suite spanning an entire its recognizable Chippendale floor and two large private top, into luxury condominipools, according to a prelimi- ums in 2015. Mr. Macklowe nary offering plan submitted competed with Chetrit to to the New York State Attorbuy the building, but lost out ney General’s office. in the final bidding. Mr. Singer says the conThe company has since version of the Beaux-Arts abandoned the plans and Emigrant building, designed sold the 1980s-era building by Raymond F. Almirall, was to a Saudi conglomerate for made easier by the 17-story approximately $1.4 billion building’s H-shaped struclast year, records show. The ture, which allows better acChetrit Group declined to cess to sunlight with triple comment. exposures in some apart“I was totally committed ments. Until recently, the to that as an office building,” building, which was conMr. Macklowe says. “When I structed between 1909 and saw the plans for the condo1912, housed various city minium, I thought that it agencies. It was built for the was a very bad use of space. Irish Emigrant Society, a Some buildings just can’t bank for Irish immigrants, change their suit of clothes.” Micro Trends, Macro Context. In Minutes. THE DAILY SHOT Speed-read the markets Every morning, get a complete look at the trends moving global markets with The Daily Shot. Exclusive to members, WSJ’s latest newsletter delivers a sophisticated, impartial view of the markets in 30-plus charts, from credit to currencies to commodities. It’s the essential insight you need to start your day. Sign up at WSJ.com/dailyshot © 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ5150 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. M8 | Friday, October 13, 2017 HIGH-RISE LIVING & DESIGN A MILE-HIGH BUILDING BOOM JIMENA PECK FOR THE WALL STREET JOURNAL (3) RYAN DAVID BROWN FOR THE WALL STREET JOURNAL ON TRACK Denver’s train station, Union Station, with a building under construction in the background. POINT BREAK Tara Nelson, above, in the clubroom at Decatur Point, where she rents a studio apartment for $1,700 a month. Resident Jordan Malcolm plays with her dog, below left; an aerial shot of the courtyard, below right. CARMEL ZUCKER FOR THE WALL STREET JOURNAL (3) Continued from page M1 town, a new 372-unit luxury apartment building, real-state agent Justin De La O counts about half a dozen cranes within a few blocks’ radius that mark where similar properties are rising. Median rents in Denver grew to $1,184 in 2015, up from $777 in 2005—a 52% increase, according to data from rental website Apartment List, compared with 32% nationally. Construction of new units boomed during the same decade, but remained slower than the pace of new job creation, with 1.7 new jobs created for every new residential building permit. From 2010 to 2015, the ratio was particularly offbalance, with 2.9 jobs added for every building permit, according to census data analyzed by Apartment List. Now, some local real-estate experts say the balance is shifting, with the supply of new housing matching or even exceeding demand. The result: Rental-price growth already shows signs of softening, with median rents down 0.4% over the past month, to $1,340, according to Apartment List’s October report. (The company says this may be due in part to a seasonal dip.) “They have totally overbuilt the luxury apartment buildings,” says Christina Freyer Walker, the president of Colorado & Co. Real Estate. That’s good news for renters, as some buildings begin to offer incentives such as $500 signing bonuses, elaborate furnishing packages, gift cards and breaks on rent to attract tenants. Tori Larson is the asset manager for the developer behind Decatur Point, a 203-unit rental building with an outdoor pool that opened in November 2016 and is now 88% rented. She says the building has tried a range of promotions to attract renters. One recent deal was aimed at pet owners; it included a gift card for 10 visits to a doggy day care and six months of monthly on-site pet grooming. Another promotion featured a $500 Visa gift card, which she said was popular. “It’s a constant battle trying to figure out what’s going to work and what’s going to attract people,” she says. Studios in the building start at $1,485 a month; two-bedroom, two-bathroom units go up to $2,700. Leeann Nicolo moved to Denver from New York in June. She looked at about 15 different places before choosing her 950-square-foot unit at the Alexan Uptown. At the time she signed her lease, she says the building was offering one-month free rent and waiving the building’s standard pet fee for a few months. The signing package for her $1,950-a-month, one-bedroom apartment also included several gift options. She chose one that came with a $300 Southwest Airlines gift card, a free membership to the Denver Zoo and a subscription a service that delivers free snacks from around the world once a month. “In New York you have to argue for everything and you’re lucky if you even get an apartment,” says Ms. Nicolo, 27, who works in cybersecurity. The building’s more recent promotion included waived signing fees and discounts on certain units. The rental-building boom was partly fueled by a slowdown in the building of for-sale luxury condos. Some developers say that under local construction-defect laws, condos are more vulnerable to lawsuits than rental buildings, making rentals seem like a safer bet. Others say that market conditions have been more favorable for rentals. The low inventory of homes for sale has kept the sales market competitive. Denver homes and condos sell in under 30 days on average after listing, on par with hot markets like the San Francisco Bay Area, says Pam O’Connor, the CEO of Leading Real Estate Companies of the World. David Zucker, the CEO of Zocalo Community Development, says the past year has given him pause about the high end of the rental market, though Denver’s growing global recognition makes him optimistic about the city overall. The company’s newest luxury rental building, Coda, in Cherry Creek, is about 70% rented a year after opening, which he says is slightly slower than expected but not surprising, considering the competition. The building has free gigabyte INCENTIVES Leeann Nicolo, left, in her living room in the Alexan Uptown, a new Denver building. The building’s swimming pool and exterior, above. When she signed her lease, she got a $300 gift card and other perks. high-speed internet for all residents, in addition to concierge service and a new ground-floor restaurant, Hedge Row, owned by Elon Musk’s brother Kimbal Musk. For future development, he says, he’s focusing on mixed-use buildings. Some buildings are trying to stand out with increasingly luxurious amenities. At the Battery on Blake, a luxury apartment building across the street from Coors Field, there’s a sports lounge with an indoor bowling alley and billiards. Many buildings also include dog spas (where renters can wash their pets) as well as rooftop dog parks or dog runs. And then there are the types of amenities that are unique to Denver’s outdoorsy lifestyle, like ski-storage rooms, or kayaks that residents can borrow to use on nearby rivers. The Confluence, a 35-story building under construction at the convergence of Cherry Creek and the South Platte River, has units that range from 658-square-foot studios to 2,500-square-foot penthouses. Amenities include bikes that residents can borrow to ride around town, as well as valet parking. A heated outdoor infinity pool, open year-round, has a cantilevered glass wall as well as several resort-style cabanas, each with its own fire pit. The gym has sliding glass doors that open to an outdoor yoga lawn. One-bedrooms at the Confluence start around $2,400 a month and the largest penthouses could rent for more than $16,000 a month; prices are still being determined. With hand-scraped wood floors and 10- to 12-foot ceilings, the units are some of the priciest per square foot in Denver. Developers say there’s already a waitlist for penthouses, although they’re still under construction. They aren’t offering big promotions yet, though some non-penthouse units come with a $500 to $1,000 “construction” rebate while the building is still being completed. Tara Nelson, a 32-year-old registered dietitian, moved to Denver from Barnstable, Mass., in May. She looked at seven or eight different luxury buildings before settling on Decatur Point in Jefferson Park. She liked the building’s gym, which has Peloton bikes with live video spin classes, and free yoga classes twice a week. Her 630-square-foot studio apartment has a patio where she can watch the sunset in the evenings. Her rent is $1,700 a month, but with the building’s one-month free move-in incentive, which she spread out over the first year, she pays $1,595; she says her application fee was also waived. Developers and real-estate agents say the next boom will likely happen in the suburbs. Adrienne Hill, a senior vice president with Simpson Property Group, has developed buildings like Sky House, a new 25-story, 354-unit downtown luxury apartment building in the Financial District with a rooftop pool and a gym that has a virtual training center. The building opened in October 2016 and is 64% occupied, which Ms. Hill says is in line with their expectations. With the urban market nearly saturated, the company is looking to suburban areas like Littleton, about 20 miles south of Denver, for new development. “There’s a lot of opportunity in the suburbs and a lot of pent-up demand,” she says. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | M8A NY EAST SIDE Ann Folliss Jeffery SOPHISTICATED DUPLEX ON RIVER Beekman Place. 4BRs, 5.5 baths, Lib, FDR, EIK, 2 staff rms. River views. Separate 5 room staff suite. $10M. WEB# 17520089. Leslie R. Coleman 212-906-9387 Mary K. Rutherfurd 212-906-9211 PARK AVE-17RM MASTERPIECE Park Ave/E. 73rd. Co-Excl. Renovated 11th floor residence w/ 39 windows and four exposures. 12’ ceilings, floor-to-ceiling windows. $39.5M. WEB# 16805056. John Burger 212-906-9274 40’ WIDE MANSION W/ GARAGE East 74th & Madison. Rarely available 40’ wide, approx 12,425SF mansion w/ private garage, elevator & large South garden. $35M. WEB# 17518128. David E. Kornmeier 212-588-5642 Scott Harris 212-317-3674 WEST SIDE THE JAMES P. WARBURG MANSION East 70s/Madison. 37’ wide, approx. 12,439SF, superb TH block, delivered vacant, Southfacing garden. $32.5M. WEB# 17437670. Paula Del Nunzio 212-906-9207 Mary K. Rutherfurd 212-906-9211 Leslie R. Coleman 212-906-9387 MINT TOWNHOUSE OFF PARK AVE Park-Lex/E. 60s. Triple mint 20’ renovated five-story 8,400SF home.7BR & 6.5 baths. Garden & 2 terraces. $19.95M. WEB# 14575707. John Burger 212-906-9274 Lauren Elizabeth Bankart 212-588-5698 STUNNING VIEWS 3BR CONDO Midtown East. Breathtaking views in mint 3BR Condo. 11’3” ceilings w/ floor-toceiling windows. Enormous great room. $3.45M. WEB# 17425096. Linda Stillwell 212-452-6233 Dennis G. Stillwell 212-452-6234 STUNNING SPACE AND VIEWS East End Avenue/80th. Grand 4BR, 5 bath with sweeping East River views. Formal LR, DR, Lib/4th BR, WEIK, staff rooms, central AC. $3.95M. WEB# 16181118. Amanda Brainerd 212-452-4515 Simone Mailman 212-452-6209 3BR CO-OP WITH HELICOPTER VIEW Upper East Side. New - spacious sunny home w/ 45’LR/DR, huge kitchen w/ separate breakfast rm, 3.5 baths in FS bldg, gym, +garage at $295/month. $2.795M. WEB# 17460506. Jaye G. Roter 212-712-1124 HUGE 2 BEDROOM W/ OPEN VIEWS Midtown. Huge 2BR, 2.5 bath at Olympic Tower w/ sweeping Central Park & city views. 32’ LR/DR, WEIK, W/D. $13K/month. WEB# 17451236. Daniella G. Schlisser 212-906-9348 Matthew D. Hughes 212-906-9351 Bryant Montalvo Caroline E.Y. Guthrie Cynthia Acevedo Daniella G. Schlisser David Carter Fritzi Kallop PREWAR 3BR CONDO ON UWS West 72nd. 1,800SF 3BR, STUNNING 4BR PH CONDO Upper West Side. Fabulous 4BR, 4 bath w/ 2 terraces & gorgeous planted private roof deck. FS w/ gym, playroom & garage. $6.5M. WEB# 17359847. Lisa K. Lippman 212-588-5606 Gerard S. Moore 212-588-5608 FANTASTIC OPPORTUNITY Upper West Side. Co-Excl. Combine apartments 4B and 4C at 75 CPW. These homes span 65’ along Central Park, expansive views. $9.75M. WEB# 16316956. Gregory M. Roache 212-588-5662 MIXED USE TH ON VIBRANT BLOCK Columbus/Amsterdam. 4-story Queen Anne house with 3,250SF commercial plus 2 floor thru apts. Expansion possible. $5.595M. WEB# 17217457. Wolf Jakubowski 212-588-5630 3 bath in coveted prewar Olcott Condo w/ thru-wall AC & W/D. 1/2 block to Central Park. $3.75M. WEB# 17460733. Wendy J. Sarasohn 212-906-9366 Jamie S. Joseph 212-906-9369 NEW 2BR/2BTH JEWEL ON CPS Midtown West. Rare 2BR, 2 bath w/ large rooms, N&S expo, EIK w/ window, walls of windows, FS bldg & low maint of $1,656 w/ 50% TD. $1.894M. WEB# 17471471. Carol A. Raskin 212-452-6215 Mark P. Raskin 212-452-6214 NEW- HI FL 1BR @ MOMA CONDO Off Fifth. 973SF, 1.5 marble baths, walls windows, spectacular views. Staff of 52, gym w/ sauna, md/valet svc avail, conf rm and terrace. $1.69M. WEB# 17391270. Corinne Vitale 212-906-9249 Linda De Luca 212-906-9208 Gerard S. Moore Ileen G. Schoenfeld DOWNTOWN Joanne Greene Laura E. Moss BRAND NEW, 26’ WIDE TOWNHOUSE Chelsea. 7 levels, 8,300SF, 20’ x 20’ skylit inground pool. Elevator, 7BRs, 7 baths, 4 outdoor spaces, rare. $19.995M. WEB# 17459775. Rachel A. Glazer 212-317-3661 Douglas Bellitto 212-906-0542 GREENE STREET LOFT Soho. Impeccably designed 2,216SF loft in the coveted Soho Cast Iron Historic District. $5.995M. WEB# 17504376. Judith M. Gillis 212-452-4490 Liz Dworkin 212-906-0509 BRIGHT & SPACIOUS LOFT 652 Broadway. All four exposures with over-sized windows in approximately 3,560SF (per floor plan draftsman). $5.25M. WEB# 17329233. Susan B. Rubin 212-906-9323 FULL-FLOOR UNION SQUARE LOFT Union Square. Recently gut-renovated, beautifully designed 2BR, 2.5 bath Co-op loft with very low maintenance. $3.48M. WEB# 17009409. Paul Rock 212-906-0589 HUGE SOPHISTICATED LOFT Chelsea. Fully renovated, bright, large, flexible-7rm, full-floor apt w/ great room, Lib, FDR, EIK, LR, 2BRs, 2 baths. $4.95M. WEB# 17353438. Kathryn Steinberg 212-396-5868 Armin B. Allen 212-396-5851 LOFT MASTERPIECE Chelsea. Prewar Condo with huge windows & a host of sleek finishes, gorgeous 2BR, 2 bath, modern luxury. $2.65M. WEB# 17379090. Mike Lubin 212-317-3672 Marc J. Policarpio 212-452-6259 SUN-FLOODED VILLAGE LOFT Greenwich Village. Soaring 14’ ceilings, huge industrial windows, open kitchen, vast views. FT doorman, roof terrace. $1.285M. WEB# 17396799. Caroline Gatewood Buck 212-396-5889 Lee Solomon Leonel Piraino Leslie J.W. Singer BROOKLYN TREE-TOP HIDEAWAY Brooklyn Heights. Beautiful loft-like 1BR, fully renovated with private roof deck. W/D in unit. Multiple skylights. $899K. WEB# 17468671. Jill Seligson Braver 718-858-5905 Natalie Rabaa 718-613-2782 ONE BEDROOM WITH TERRACE Fort Greene. 1BR Condo with terrace. Fully renovated, W/D in unit and central AC. Parking available for purchase. $799K. WEB# 16588551. Natalie Rabaa 718-613-2782 ESTATE SALE Cobble Hill. Spacious, sunlit Co-op with large terrace. 1BR, 1.5 bath. Lovely neighborhood. $699K. WEB# 17224663. Sal “Cappi” Capozucca 718-399-4103 Victoria Capozucca 718-399-4164 Margaret H. Bay Mary A. Vetri PALM BEACH Nada Rizk OASIS IN THE SKY Greenwood. Rare Condo PH blending the outdoors w/ indoors. 1,100SF 2BR + 600SF private deck w/ iconic city views. $1.195M. WEB# 17469103. Alexis Kravitz 718-399-4152 THE PERFECT HOUSE Park Slope. 6,200SF restored & upgraded single-family home. Prewar details, 5-stories, 117’ long lot. $9.25M. WEB# 16254860. Terry Naini 212-452-6267 CHARMING BROOKLYN TOWNHOUSE Gowanus. Charming 15’ x 28’, 6 room, 2 bath single-family townhouse w/ beautiful 540SF garden/separate 141SF studio. $1.375M. WEB# 17101752. Tate Kelly 212-452-6235 TOWNHOUSE 2BR, LG PRIVATE DECK Brooklyn Heights. Mint condition floor-thru in prime location. 2BR, 1 bath TH, laundry, WBFP, chef’s kitchen, South-facing deck. $1.375M. WEB# 17364939. Jill Seligson Braver 718-858-5905 Rhea L. Cohen 718-858-5908 Phyllis D. Norton-Towers 335 COCOANUT ROW Palm Beach. Situated only 3 blocks from famous Worth Avenue, this 2 unit main with guest cottage makes for the perfect Palm Beach vacation or income property. $2.249M. MLS# 2000114069. Nick Kassatly 561-324-1594 Jutta Kassatly 561-805-5094 Stacey Lynn Curry All information is from sources deemed reliable but is subject to errors, omissions, changes in price, prior sale or withdrawal without notice. All rights to content, photographs and graphics reserved to Broker. Equal Housing Opportunity Broker. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com M8B | Friday, October 13, 2017 As we continue to swing for the fences, we know that any advancement can have a life-changing impact. Whatever it takes. Stand up for the 16 million people living with cancer in the U.S. and Canada. Visit StandUpToCancer.org/MLB Stand Up To Cancer is a division of the Entertainment Industry Foundation (EIF), a 501(c)(3) organization. Major League Baseball trademarks and copyrights are used with permission of Major League Baseball Properties, Inc. Visit MLB.com NY THE WALL STREET JOURNAL. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | M9 MANSION JUMBO JUNGLE | LEIGH KAMPING-CARDER TAG-TEAM MORTGAGE FINANCING Call it the mortgage merrygo-round: Parents refinance their home to fund the full cost of their son or daughter’s desired home. This allows the child to compete as a desirable all-cash buyer in an area where bidding wars are common. Then, when the purchase closes, the child refinances the new home and pays the parents back. Sellers often prefer cash because transactions can close quickly without making a deal contingent on financing. This is particularly important in bidding wars: If the purchase price is above the list price and appraised value, it may be tricky to get a loan, said Kas Divband, a Washington, D.C., agent with Redfin. Mr. Divband said he has worked on six deals where the buyer was relying on a parent’s mortgage to make an all-cash offer. The strategy is also evidence of how difficult it is for millennials getting into the housing market for starter homes, where competition is the fiercest. Even those with high-paying jobs and hefty down payments are losing out, particularly in cities with strong job markets for young people, such as Washington, Boston and Seattle, said Nela Richardson, Redfin’s chief economist. Redfin agent Cody Coffman recently worked with a 20-something Olympic athlete who paid $2.8 million for his first home, a newly built five-bedroom house in Los Angeles’s Venice neighborhood that was listed for $2.758 million. His parents took out a home-equity line of credit, or Heloc, to give him the full purchase price, allowing him to beat out four other offers. “Educating him on how to talk to his parents was probably the most difficult part,” Mr. Coffman said, since it wasn’t every day their son asked for $2 million. The athlete worked with a loan officer who vetted him before the purchase and also handled his parent’s line of credit. This move will not work for everyone. Parents must have enough equity in their homes to make a refinance worth it, and the same goes for the child’s new home. Both parties must be willing to take on the added hassle and cost of two loans. And mixing family and money is often fraught. Here are a few more things to keep in mind: • Loan options. Parents have several options for using the equity in their homes, including a cash-out CHRIS GASH Parents refinance their homes and give money to a child who is buying a house; the child refinances to pay back parents refinance, which allows borrowers to refinance an existing mortgage plus an additional amount and take the difference out in cash; a home-equity loan, which is a loan against the value of a home, including a second mortgage; or a Heloc, which works like a credit card, allowing homeowners to qualify ahead of time and withdraw funds when the child is ready to close. • Finance fail. The biggest risk is that children won’t qualify for a loan—or as big a loan as expected—especially if they pay above the asking price or the market cools. To help avoid this outcome, let the lender know your plans ahead of time, Mr. Divband said. It may be more convenient to use one loan officer for both transactions. Note that some lenders want buyers to live in a home for three to six months before refinancing. An alternative is a delayed-financing mortgage, which allows a buyer to purchase the home in cash and refinance the day after closing for up to 80% of the value of the home, said Peter Lucia, a production manager at Brecksville, Ohio-based CrossCountry Mortgage. • Think like a lender. Parents should do the same kind of due diligence as a lender, including vetting children’s finances. Tim Manni, a mortgage expert with NerdWallet, a San Francisco-based personal-finance company, recommends working with a lawyer to draw up a family loan agreement setting out repayment terms and other stipulations. Buyers may also want to get a home inspection. • Consider the costs. A purchase mortgage or a refinance would typically cost about 2% of the loan value, Mr. Lucia said. Most closing KAYA SURVIVED! She was born 4 months early and spent more than 5 months in the hospital. Sign up at marchforbabies.org © 2017 March of Dimes Foundation costs would apply to two loans instead of one. Luckily, prepayment penalties are rare on primary-residence loans, though they might apply on investment properties, Mr. Lucia said. • Tax tips. Gifts of more than $14,000 per person per year are subject to federal gift taxes for the giver, which could apply to both parents and children. Interest on the first $1 million of a purchase mortgage is tax deductible, versus only the first $100,000 on a home-equity loan or line of credit. Both parties should consult a tax professional. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. M10 | Friday, October 13, 2017 ADVERTISEMENT KIAWAH ISLAND, SOUTH CAROLINA AUSTIN, TEXAS GUILFORD, CONNECTICUT With 5,621 square feet, 5 bedrooms, 4 baths and 2 half baths, the home at 103 Goldeneye Drive is just a stroll away from Kiawah’s 10-mile beach. Located on a quiet lane shaded by palmetto and oak trees, it offers floods of natural light and design details like varied ceiling heights, curved walls, and a stone outdoor fireplace. A Kiawah Island Club Membership may be available. Your Lakeside Farmhouse Awaits. This spacious one-story is situated on a 1+ acre lot in a private, gated community on the Lake Travis shoreline. Boasting 3 bedrooms plus casita, 4.5 bathrooms, exquisite pool/spa, outdoor kitchen & high-tech conveniences, this home blends the comfort of the Texas Hill Country with the sophistication of a custom home. Luxury Residences, CT “Project of the Year” by HBRA. 16+ acres, 1884 Mill has 2-BR loft units with garages. New construction of (3) 4-story buildings with 2-BR ranch units, underground parking, views of L.I. Sound, River, Marsh. Walk to the Historic Town Green, Shops, Restaurants, Train Station, Yacht Club and Beach. Proposed Pool/Clubhouse/Fitness Ctr. $3,600,000 $1,690,000 Priced from $719,000 kiawahisland.com/real-estate PeninsulaLakeTravis.com www.66highst.com Kiawah Island Real Estate The Peninsula at Rough Hollow Loren Dickey Horton Group Kenny Horton phone: 866.312.1780 phone: 512.456.3756 info@PeninsulaLakeTravis.com phone: 1.203.499.8994 MUTTONTOWN, NEW YORK BOCA/DELRAY BEACH, FLORIDA BONITA SPRINGS, FLORIDA So close… yet so far - Way down a private road, 23 miles from Manhattan, minutes from major highways and railroad, find 8.88 acres divisible into two majestic parcels. On 2 1/2 acres sits a beautiful 5,500 sq. ft brick colonial with five bedrooms en-suite, gourmet kitchen, library, dining room, living room, pool, tennis court and guest house. Sell or build the remaining acreage, ride horses or grow grapes…it’s your world. Ultimate luxury at Seven Bridges – brand new estate homes in a highly amenitized non-golf community in Boca Raton / Delray Beach area. Generous features include impact glass, granite or quartz countertops, gourmet kitchens and stunning 30,000 sq. ft. club. Low HOA fees, close to world-class shopping, great schools. Experience Seven Bridges today! 13 New Models Now Open! – There is a new standard of living on Florida’s beautiful Gulf Coast. Valencia Bonita offers and exciting vacationinspired lifestyle that rivals the finest resorts. Featuring a 45,000 sq. ft. Clubhouse with world-class amenities and elegant single-family and villa home designs for every taste. Call or visit today! firstname.lastname@example.org From the $800’s - $2 million glhomes.com/seven-bridges From the $300’s - $600’s glhomes.com/Valencia-bonita Offered at $3.3 million Steve Edwards GL Homes GL Homes phone: 516.640.6745 phone: 800.875.2179 phone: 800.574.9205 HARTLAND, WISCONSIN DOWNTOWN ST. PETERSBURG FLORIDA PARK CITY/HEBER VALLEY, UTAH Pine Lake: Elegant 4,500-sq.ft. New England shingle-style home. A unique Live a fabulous Urban Lifestyle in vibrant downtown St. Petersburg. 3 home with lake views from every main room, including a turret topped by a blocks from the water, artfully designed townhomes now under construction on a private, gated lane. Totaling 2,335 sq. ft., 3 bedrooms, 3 ½ baths, 2 crow’s nest. Nestled on 6 acres, featuring 230’ of prime lake frontage. car garage, private elevator, and amazing rooftop terrace. Low HOA fees. Walking distance to world-class restaurants, museums, shopping, parks, marina, and Tampa Bay. $2,850,000 http://www.patbolger.com From the $800’s to $900’s www.RegentLane.com Red Ledges’ 2180 E Flat Top Mountain Dr offers Wasatch Mountain views from a huge heated deck, 5 en-suite BRs and the fun of a home theater, game room and sports bar. As the most successful private community in the Park City area, Red Ledges has great access to world class mountain, valley, water and trail activities 45 minutes from a major hub airport. Exceptionally priced at $2,895,000 Pat Bolger Realty Group NJR Property Investments LLC Red Ledges Realty Chris Maddox phone: 262.313.8797 phone: 727.515.5556 email: email@example.com phone: 877.733.5334 NEWPORT BEACH, CALIFORNIA NAPLES, FLORIDA NOVA SCOTIA, CANADA Vue Newport is collection of 27 Waterfront Villa-style homes featuring 2 - 3 bedrooms, 3 baths and up to 3,050 square feet. Most residences offer stunning harbor views while presenting a carefully curated collection of contemporary finishes. Additional Vue luxuries include boutique retail, gourmet restaurants, creative office space, onsite fitness center and boat slips up to 75 feet available for lease. New Luxury Single-Family, Villa and Coach Homes at The Isles of Collier Preserve! Over half the 2,400 acres are dedicated to lakes, nature preserves and natural habitat. The Isles Club is now open and features a clubhouse, fitness center, resort-style pool, lap pool, yoga lawn, tennis and pickleball courts, kayak launch and 8 miles of scenic kayak, hiking and biking trails! 5 Mins. from Downtown Naples and the Gulf beaches. Coastal Living. Traditional architecture, southwest exposure & more than 500 ft of ruggedly beautiful oceanfront. Refined yet casual; spacious, but intimate enough for two. Cascading decks, hot tub, garage with guest loft. Sweeping views, spectacular sunsets, coastal trails and a splendid rocky shoreline. ±1hour from international airport. 45 min to Halifax. From the $2,350,000s From the mid $300s to over $1 million firstname.lastname@example.org VueNewport.com MintoUSA.com email: info@RedLedges.com $1 million USD. https://player.vimeo.com/video/235952848 Vue Newport Presented by Coldwell Banker Minto Communities Land & Sea Real Estate Sheila Sinnot phone: 949.467.3418 phone: 888.483.8708 phone: 902.541.0060 To Advertise Call: 800-366-3975 email: email@example.com THE WALL STREET JOURNAL. Friday, October 13, 2017 | M11 NY / NE 60-'!00 #'6 .7.8' 9 " ,: ;** < )= > " ?;3* " @++2***** 1''#68 . 0##' 8 C 8 = 9 " 5 1 5 7 @,23**** 6'0# .C' +****: / ;,+ ) > " A= @3?23*** 6'600% .C' +* 5 F "> " )= @A)<**** 1''#68 . 0##' 8 C . == ! ;= = 5 +*> 7" " @A)3**** ! ;*?A2?)<,? 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NY/NE HIGH-RISE LIVING & DESIGN RELATIVE VALUES DIVE IN: PENTHOUSES WITH PLUNGE POOLS TIM WAITMAN FROM LEFT: LUXURY ESTATES INTERNATIONAL; DDG (RENDERING) Three luxury condominiums in Las Vegas, New York and Palm Beach, Fla., let you go for a swim long after summer’s end $15 million $3.7 million Las Vegas Six bedrooms, six full bathrooms, two half-baths A roughly 20-by-10-foot plunge pool is on one of seven terraces in this triplex condominium. The 15,395-square-foot penthouse comes with a library, an elevator and a home theater. An eightcar garage and a two-bedroom staff apartment are on the ground level. Agent: Kamran Zand, Luxury Estates International $22.5 million Palm Beach, Fla. Three bedrooms, 3½ bathrooms Manhattan Four bedrooms, 4½ bathrooms The rooftop plunge pool in this 2,823-square-foot penthouse under construction hugs a 42-inch-tall railing parapet overlooking the ocean, and has 16 hydrotherapy jets. The condo features an elevator to the roof. The 30-unit, seven-story building, developed by DDG, also has gated beach access and electric-vehicle charging. Sales: Douglas Elliman Development Marketing Stretching a full block, this 7,061-square-foot Tribeca penthouse has a full-floor master bedroom and a great room with 21-foot ceilings. The 32-foot-long heated resistance pool is on the 2,399square-foot private roof deck. Agents: Tal and Oren Alexander, Alexander team, Douglas Elliman —Leigh Kamping-Carder ADVERTISEMENT Distinctive Properties & Estates To advertise: 800-366-3975 or WSJ.com/classiﬁeds MULTI STATE OFFERINGS # $ % & '( ! " '$! .' #! $% &' !"#$% % /0* "# ,, (( "11!"#$% ($" ($' -& % &'" (( ') $!*$ " )* "#!"#$% +, %( 2 ) ' 3"# 4"# ( ' ' (( "#!"#$% ! " 5/ +,'') -$ .' " -*# +, !'$/!' " ".!"#$% % &# 5/ ') #+ '!"#$% CALIFORNIA CALIFORNIA / ) !"# $ %%&'()&')(* + ,- #-!"# $ %&'(&.'. MARYLAND $ % & & '& # '0) 1*& &' !" # $# % &' ( % % & ) ) * % +, " & % # % ' ) 0 12 #& 3 & # # 0 %% & 0& 1 $ 4$ & + - .,&''/* . 34343 ! " # ( )* &*' + ,' '&&- % 2 ! "# $ %& ' ( ()' *"* THE WALL STREET JOURNAL. Friday, October 13, 2017 | M13 NY / NE ADVERTISEMENT Distinctive Properties & Estates To advertise: 800-366-3975 or WSJ.com/classiﬁeds * % ( %) ! ! ( ! ," - . / % ! ! ! "# $" + # ( ! ("# +## *" + - ( '% ! % & ' ! ! ( %) ! ( (# ' ( ! + * ! 0 " ! "! "! #$ %%& NORTH CAROLINA FLORIDA NORTH CAROLINA ! " #$"! "% " & !"# For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. M14 | Friday, October 13, 2017 MANSION HOUSE CALL | MERCEDES RUEHL The Costume Ball That Led to Hollywood The Oscar-winning actress was inspired by a collection of old clothes; today, an East Hampton farmhouse My father, Vincent, had earned his undergraduate degree on the G.I. Bill from Fordham University. He came from a couple of generations of cops and wanted to do them one better. In Indiana, we lived in West Lafayette until I was 5. Then we moved to an apartment in a rural area of Scranton, Pa. Out back was a hill with a windowless, whitebrick building at the top. It was a theater, and I’d go up there and make up passionate little operas. A year later we moved to Hackensack, N.J., for a year. At 8, we were in Silver Spring, Md. By then, my mother, Mercedes, who was known as “Mickie,” had enough. In Silver Spring my father agreed to stay put until my brother, Peter, and I got through high school. At first we lived in a three-bedroom, redbrick, two-story duplex. My brother and I had our own rooms. I inherited my parents’ newlywed set of bedroom furniture. I had a double bed and a pretty little dresser with a mirror. Most important was a chest of clothing my mother and aunt had given me. It was filled with discarded hats, shoes and scarves. Mom had West Point graduates in her family and had gone to dances there as a young woman, so I inherited ball gowns, too. Whenever my friend Judy came over, we dressed up in finery and got a story going. Outside, we were serf girls in the field invited to a ball by twin princes. Back in the room, we used the platform in my closet as seats in the coach sent to take us to the castle. Then we’d change into gowns and traipse downstairs to the imaginary ball, where my mother served us lemonade and Oreos. When I was 14, we moved to an apartment across the street. The new building had a beautiful woodland view, air conditioning, a swimming pool and a long balcony. My father was regimented. He got up each day at 6:30 a.m. and went for a run. Then he’d shower, shave and dress. It was a ritual that my brother and I found fascinating. We’d watch as he combed his curly hair, and put on a beautiful crisp shirt, tie and slacks. He even had suspenders for his socks. Then he’d put on his jacket. He always smelled so nice. He usually came home at 6:45 p.m. My mother was more affectionate with us than my father. She was the source of much of what was lovely and cultural in our lives. She had studied art at Hunter College in New York. In high school, I was sort of REBECCA MCALPIN FOR THE WALL STREET JOURNAL; MERCEDES RUEHL (INSET) Right after I was born, my parents and my brother and I lived in a studio apartment in Queens, N.Y. We lasted two weeks there before my parents moved us into a two-bedroom apartment near my grandparents in the Bronx. Two years later we moved to Indiana. By then my father was an F.B.I. agent. AT PLAY Mercedes Ruehl, above, at the Second Stage Theater in Manhattan, and, left with her father, Vincent, and brother, Pete, at the Franciscan Monastery in Washington, D.C. popular. I acted in plays. Since it was an all-girls school, I often played men. When I graduated, I enrolled in the College of New Rochelle in New York and majored in English literature. After graduation in 1969, I moved to New York. Suddenly I was on my own. The $500 my grandfather gave me as starter money went fast. I waited tables. I also studied acting with Uta Hagen. First came regional theater. Then I studied in New York with Tad Danielewski, a brilliant teacher and director. I was 29 and my parents were worried. Then playwright and di- rector Albert Innaurato called. He had seen me perform and was directing “Coming of Age in SoHo” at the Public Theater. The main character needed a girlfriend. I got the role, and larger roles in the theater and on TV and in the movies followed. Today, I have an apartment in Midtown Manhattan on the Hudson River. I also have a house in East Hampton, N.Y. For 24 years I lived on a windswept bulkhead overlooking Gardiners Bay. But storms in recent years took a toll. Last fall, I sold the house and moved inland to an old shingle farmhouse. It has a barn-size great room and three bedrooms. I also have gardens and a free-form pool. FOR COMPARISON PURPOSES, THERE’S NO COMPARISON. Luxury homes that aren’t everything to everyone. But everything to a select few. Browse our collection at berkshirehathawayhs.com ©2017 BHH Affiliates, LLC. Real Estate Brokerage Services are offered through the network member franchisees of BHH Affiliates, LLC. Most franchisees are independently owned and operated. Berkshire Hathaway HomeServices and the Berkshire Hathaway HomeServices symbol are registered service marks of HomeServices of America, Inc.® Information not veriﬁed or guaranteed. If your property is currently listed with a broker, this is not intended as a solicitation. Equal Housing Opportunity. It’s magical, but it isn’t the bay. I’m adjusting. I still have my father’s blue, round cufflinks. They’re the color of the morning sky on a perfect day. I also have my mother’s handmade coral-pink lace nightgown and little jacket that goes over it. They were made by my great aunt. I don’t know how it’s possible, but it still smells like my mom. —As told to Marc Myers Mercedes Ruehl, 69, won a Tony for her performance in Broadway’s “Lost in Yonkers” in 1991, and an Oscar for her role in “The Fisher King” in 1992. She is appearing in the off-Broadway production of “Torch Song,” opening on Oct. 19.