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The Wall Street Journal (10 – 13 – 2017)l

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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%
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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 wsjcontact@wsj.com or by calling 888-410-2667.
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THE WALL STREET JOURNAL.
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.
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A4 | Friday, October 13, 2017
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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.
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THE WALL STREET JOURNAL.
Friday, October 13, 2017 | A5
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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.
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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
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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.
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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.”
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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.
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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
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www.newarka.edu
973.992.7000
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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 teachout@wsj.com.
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 jfusilli@wsj.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
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U.S. Forecasts
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Orlando
Philadelphia
Phoenix
Pittsburgh
Portland, Maine
Portland, Ore.
Sacramento
St. Louis
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Wash., D.C.
Hi
63
86
69
94
74
62
56
77
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63
70
75
55
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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
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Berlin
Brussels
Buenos Aires
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Edinburgh
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66
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56 pc
61 s
66 s
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55 pc
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78 s
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51 r
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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
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Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
Manila
Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
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Seoul
Shanghai
Singapore
Sydney
Taipei
Tokyo
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Vancouver
Warsaw
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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
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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
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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
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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
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8 Whole
65
66
67
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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,
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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
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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
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S C A N S
C A P S
L O O N
Y U C C A
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17 One way to love 39 Muscle targeted
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F A L C O N T R O L
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64 Its main square is
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40 Political Al
19 Mean pitchers
the Piazza De
L E X I C O N F E T T I
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MO P E S
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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 crosswordcontest@wsj.com
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
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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 kim@wsj.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 wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
“I may be domesticated,
but I do have a wild side.”
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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
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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?
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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
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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.
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A16 | Friday, October 13, 2017
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BUSINESS & FINANCE
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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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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 | 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.
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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
li.yuan@wsj.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.
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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
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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 ... BluStrTABIGIIsrael ITEQ
Ametek
67.59 0.2 GabelliGlbSmall&MC GGZ
AME
31.02
13.56 1.9 SeabridgeGold SA
13.25 0.4 BuzzUSSentLdrs BUZ
87.79 1.1 GabelliUtility
Amphenol
APH
7.20 -0.3 SensataTech
GUT
48.98 0.5 CambriaGlbMomentum GMOM 26.81
ST
AnnalyCapPfdF NLYpF 26.11 0.3 Gallagher
26.02
ClearSharesOCIO
OCIO
62.14 0.5 SherwinWilliams SHW 384.99 0.1
AJG
Aon
AON 149.50 1.0 Generac
GNRC 50.29 1.6 SiteOneLandscape SITE
63.09 0.8 ColumbiaEMConsumer ECON 28.60
AquaAmerica WTR 35.00 0.6 GettyRealty
30.29
ColumbiaSustIntl
ESGN
29.51 0.1 SmithAO
GTY
61.62 1.3
AOS
Aramark
ARMK 42.26 0.5 GreatPlainsEner GXP
32.09 0.7 SpeedwayMotor TRK
23.15 2.2 CS FI LC Grwth FLGE 204.74
53.90 1.9 GuggEnhEquFd GPM
ArmstrongWorld AWI
51.75
DeltaShS&P400Mgd
DMRM
8.73 0.2 Square
33.16 2.5
SQ
ArtisanPtrsAsset APAM 35.20 -0.4 HFF
42.03 0.6 StanleyBlackDck SWK 158.37 1.1 DiamondHillVal DHVW 30.39
HF
AveryDennison AVY 101.57 -0.4 Harris
41.89
DirexAeroBl3
DFEN
HRS 136.83 0.5 STMicroelec
20.08 -0.7
STM
39.01 0.4 Harsco
BP
BP
21.65 1.9 Synnex
HSC
SNX 133.26 0.1 DirexCSI300CnABl2 CHAU 27.97
52.05 0.1 Hexcel
BadgerMeter BMI
78.53
60.13 1.4 TE Connectivity TEL
HXL
87.62 0.8 DirexDevMktBl3 DZK
BcoSantChile BSAC 31.32 0.7 Hilton
70.50 0.2 TRI Pointe
HLT
14.72 0.8 DirexESTOXX50Bl3x EUXL 30.34
TPH
BankofMontreal BMO 78.15 -0.2 DR Horton
41.54 -0.5 TaiwanSemi
DHI
40.66 0.2 DirexEM Bull3 EDC 116.88
TSM
55.29 -0.3 HysterYaleMatls HY
BankNY Mellon BK
82.32 1.5 TeklaLifeSci
22.24 0.9 DirexFTSEEurBull3x EURL 37.68
HQL
46.70 4.7 IllinoisToolWks ITW 153.35 1.2
BlackKnight
BKI
59.50
5.10 -3.0 DirexFinlBull3 FAS
Telaria
TLRA
11.85 -1.1 InfraREIT
BlkRkDebtStratFd DSU
65.77
23.15 0.9 TeledyneTech TDY 165.00 1.4 DirexJapanBl3 JPNL
HIFR
13.80 0.1 Ingevity
BlkRkEnhGlbDiv BOE
NGVT 68.57 0.1 TemplMktFd
17.24 0.1 DirexS&P500Bull2X SPUU 45.43
EMF
485.23 1.4 Intelsat
BlackRock
BLK
34.05
7.41 7.1 Teradyne
I
38.96 0.1 DirexS&P500Bl1.25 LLSP
TER
6.71 0.1 InterXion
BlkRkIntlGrInco BGY
INXN 52.63 0.2 TexasPacLand TPL
429.25 2.9 DirexSemiBl3 SOXL 129.70
16.27 -0.2 InvescoMtg
BlkRkDurInco Tr BLW
95.88
17.50 0.2 ThaiFund
IVR
10.90 0.3 DirexTechBull3 TECL
TTF
15.49 0.7 InvestmentTech ITG
BlkRkMunQlty BAF
23.80 ... ThirdPointReins TPRE 16.45 0.3 DirexTransportBl3 TPOR 32.18
15.41 1.8 JELD-WEN
BlkRkNY Muni BQH
31.67
36.36 0.1 3M
JELD
MMM 217.64 0.5 Direx iBillionaire IBLN
25.68 1.2 J&J
BlkRkSci&Tech BST
18.03
137.52 0.1 Toll Bros
JNJ
43.20 -1.0 ETF Exposure TETF
TOL
262.98 0.2 KB Home
Boeing
BA
S&P2xDivAristoETN
78.19
SDYL
27.50 0.8 Torchmark
KBH
81.62
0.5
TMK
18.12 0.5 Kemet
BrandywineRealty BDN
25.64 0.1 Tronox
KEM
TROX 26.59 -1.9 EcoLogicalStrat HECO 42.56
86.75 1.1 Kemper
Brink's
BCO
32.61
EthoClimateLeader
ETHO
KMPR 56.75 2.6 TurningPoint
18.80 2.8
TPB
65.73 0.4 Koppers
Bristol-Myers BMY
49.60 0.9 UMHPropPfdC UMHpC 27.90 1.1 FIEnhancedEur50ETN FIEU 135.13
KOP
82.77 0.3 KronosWorldwide KRO
BroadridgeFinl BR
29.49
FidelityDivRising
FDRR
25.22 0.1 Unitil
52.46 1.0
UTL
24.83 1.3 LaQuinta
BrookfieldPropPtr BPY
18.45 0.6 Unifi
LQ
37.10 0.6 FidelityLowVol FDLO 29.14
UFI
49.44 0.6 CBTCS 04-6
Brown&Brown BRO
37.05
FidelityMSCIIndls
FIDU
25.95 0.9 UnitedRentals URI
JBK
144.35 1.3
16.95 -0.3 LockheedMartin LMT 321.56 0.8
CBIZ
CBZ
UrstadtBiddlePfdH UBPpH 26.35 0.5 FidelityMSCIIT FTEC 47.46
39.49 0.1 MGIC Investment MTG
CBRE Group
CBG
33.80
FidelityMSCIMatls
FMAT
12.73 0.6 Visa
108.71 -0.3
V
24.39 -0.2 MSCI
CNO Financial CNO
MSCI 123.12 0.7 VenatorMaterials VNTR 24.73 1.0 FidelityMomFactor FDMO 29.61
42.40 ... Markel
CalWtrSvc
CWT
30.40
FidelityQualFactor
FQAL
MKL 1099.66 -2.2 Viad
61.85 -0.1
VVI
CampingWorld CWH 42.40 3.9 Mastercard
26.02
148.16 -0.1 VinaConcha
MA
37.06 -0.6 FT DJ GlbSelDiv FGD
VCO
170.60 0.9 McDonalds
CanPacRlwy
CP
105.54
FT
DJ
Internet
FDN
MCD 164.40 0.5 Vishay
21.05 0.2
VSH
Care.com
CRCM 16.92 2.1 Medifast
47.26
62.22 0.2 VMware
MED
VMW 113.60 1.0 FT DJ SelMicro FDM
42.96 -1.1 MeritageHomes MTH
Catalent
CTLT
38.16
48.45 0.5 VoyaAsiaPacHiDiv IAE
10.91 0.6 FT IndlsAlpDx FXR
13.11 0.5 MettlerToledo MTD 661.21 0.1
CatchMarkTimber CTT
37.73
55.88 0.6 FT Long/Short FTLS
Walker&Dunlop WD
130.16 1.1 ModineMfg
Caterpillar
CAT
41.36
FT
MatAlpDX
FXZ
21.05 -0.2 Wal-Mart
MOD
WMT 86.37 0.4
CedarRealty6.5%PfC CDRpC 25.00 -0.4 MonmouthRealEst MNR 16.83 0.6 Wyndham
13.77
WYN 109.77 0.6 FTSTOXXEurSel Div FDD
CharlesRiverLabs CRL 113.83 -0.2 MS EmMktFd MSF
FT
TechAlphaDEX
49.41
FXL
17.97 0.4 XPO Logistics XPO
68.50 -0.2
ChathamLodging CLDT 22.17 2.1 MS India
65.52
36.17 1.3 XeniaHotels
IIF
22.07 0.2 FT USEquityOpp FPX
XHR
55.55 0.4 NACCO Inds
Chemours
CC
30.19
FT
ValDivFd
FVD
37.50 3.3 Yirendai
NC
50.87 3.7
YRD
ChesapeakeLodging CHSP 28.57 1.3 NVR
46.72
FIW
NVR 2968.97 0.2 Zendesk
31.95 2.8 FT Water
ZEN
21.20 0.8 NamTaiProperty NTP
ChinaFund
CHN
FlexGlbQualRealEst GQRE 62.96
11.95 3.9
12.30 -5.4 NatlBankHoldings NBHC 37.08 -0.7
ChinaRapidFin XRF
FlexShMDevMktxUS TLTD 67.68
67.90 0.2 Navistar pfD
ChoiceHotels CHH
FlexShQualDivDef QDEF 42.03
NAVpD 16.33 6.7
76.14 -3.4 NoahHoldings NOAH 40.98 -0.8 AlticeUSA
Citigroup
C
ATUS 24.56 -2.7 FlexShQualDivDyn QDYN 42.05
ChnStrPfInco RNP
21.88 0.3 NorfolkSouthern NSC 133.97 1.7 AmericanRenal ARA
12.68 -5.7 FlexShQualityDiv QDF
42.88
13.46 0.4 NorthropGrumman NOC 298.88 1.2 BrookdaleSrLiving BKD
10.09 -1.9 FranklinGlbEquity FLQG 29.92
ChnStrOppFd FOF
14.50 -2.7 GlbX ChinaEner CHIE
ContinentalBldg CBPX 26.95 0.6 NorthstarRltyEur NRE
11.60
13.74 0.3 Cabco JCP PFH PFH
1.06 -3.6 GlbX MSCINorway NORW 13.81
CoreLogic
CLGX 49.14 1.4 NuvDow30Dyn DIAX
17.21 0.1 CobaltIntlEner CIE
4.23 4.9 GlbXMSCIPortugal PGAL 12.75
CorEnergyInfrPf CORRpA 26.73 -0.4 NuvNY MuniValue NNY
10.65 1.4 ComstockRscs CRK
112.32 1.0 OasisMidstream OMP
12.29 0.5 GlbXSciBetaAsiaXJ SCIX
CurtissWright CW
25.85
17.99 ... DeutscheMuniIncmTr KTF
27.90 0.1 Oshkosh
24.60 -1.3 GlbXSciBetaEurope SCID
DTE EnergyDebF DTY
DKS
28.62
87.61 2.0 Dick's
OSK
93.40 4.1 OwensCorning OC
DXC Tech
DXC
30.97
80.11 -0.4 EnvisionHlthcr EVHC 40.71 -0.5 GlbXSciBetaJapan SCIJ
4.72 -3.4 GlblXSuperDividend SDIV
DellTechnologies DVMT 80.46 1.2 PNC Fin
FBP
22.25
PNC 137.41 -0.9 FirstBanCorp
31.38 -3.6 GSActiveBetaEM GEM
Despegar.com DESP 34.70 -1.8 ParTechnology PAR
FL
34.72
11.70 10.2 FootLocker
82.65 -0.4 ParkerHannifin PH
22.83 -0.1 GSActiveBetaIntlEq GSIE
DollarGeneral DG
GE
29.38
180.19 1.4 GeneralElec
24.89 -4.7 GSActiveBetaJapan GSJY 31.92
EPAM Systems EPAM 90.85 ... PaycomSoftware PAYC 79.98 0.6 GenesisEnergy GEL
91.89 1.3 PebblebrookHotel PEB
26.26 -0.1 GSActiveBetaUSLC GSLC 50.68
EastGroup
EGP
HCP
37.32 2.1 HCP
50.87 0.5 PerkinElmer
4.82 -51.1 GSHedgeIndVIP GVIP
EatonVance
EV
JILL
52.50
72.00 0.4 J.Jill
PKI
14.38 ... Pfizer
EtnVncEqtyInco EOI
37.65
EEB
36.60 -0.3 KinderMorganPfdA KMIpA 40.00 -1.4 GuggBRIC
PFE
15.30 0.1 PrefApartment APTS 19.81 1.6 MBIA
6.64 -4.5 GuggDefEqty DEF
EtnVncEqtyInco II EOS
MBI
45.01
9.49 0.4 Primerica
4.61 -2.5 GuggS&P500EWIndl RGI
EtnVncTxMnGlDvEq EXG
114.24
87.80 0.5 NeoPhotonics NPTN
PRI
22.48 ... 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
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...
0.1
0.3
-0.2
1.7
0.4
0.1
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...
-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
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0.2
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0.6
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1.4
0.1
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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.
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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.
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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: heard@wsj.com
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
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HOMES
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MARKETS
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PEOPLE
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UPKEEP
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VALUES
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NEIGHBORHOODS
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REDOS
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SALES
THE WALL STREET JOURNAL.
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FIXTURES
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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
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to coexist with
the water M3
REBECCA MCALPIN FOR WSJ
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RUEHL
The trunk of
old clothes
that inspired
an Oscar
winner M14
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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: privateproperties@wsj.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
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444 East 86th Street
300 Central Park West
Rarely available, beautifully
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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
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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.
craig.pinder@sir.com
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. tom@stbarth.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.
john@johnstanaland.com
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. daneen@oldcape.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.
emmanuelle.ritchie@sothebyshomes.com
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. info@thewoolworthtower.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.
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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 93.1.1.16848 (INTERIOR HISTORICAL)
BUSINESS CLASS
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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.”
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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
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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
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on a 1+ acre lot in a private, gated community on the Lake Travis shoreline.
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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!
info@kiawahisland.om
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: natalie@njrdevelopment.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
pat@pbrrealty.com
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: sinnott@1novascotia.com
THE WALL STREET JOURNAL.
Friday, October 13, 2017 | M11
NY / NE
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M12 | Friday, October 13, 2017
THE WALL STREET JOURNAL.
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
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THE WALL STREET JOURNAL.
Friday, October 13, 2017 | M13
NY / NE
ADVERTISEMENT
Distinctive Properties & Estates
To advertise: 800-366-3975 or WSJ.com/classifieds
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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.
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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.
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