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The Wall Street Journal 29 August 2017

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TUESDAY, AUGUST 29, 2017 ~ VOL. CCLXX NO. 50
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What’s
News
Business & Finance
ilead Sciences agreed to
pay about $11 billion for
Kite Pharma, an ambitious bet
on a new cancer therapy that
is close to becoming commercially available in the U.S. A1
Apple has scheduled a
product announcement for
Sept. 12, reinforcing expectations it will release new
iPhones and a smartwatch. B1
For the CEO job, Uber has
tapped a low-key executive
with a steady hand and a
track record running a scandal-free, profitable firm. B1
Amazon slashed prices
on more than 100 items at
Whole Foods, which it officially acquired Monday. B3
CBS plans to buy Australia’s Ten Network, beating out
a bid from moguls Bruce Gordon and Lachlan Murdoch. B3
The FDA is stepping up
oversight of medical treatments that aim to harness
stem cells’ potential. B5
Regulators are reviewing auto-lending procedures
at several banks after problems at Wells Fargo. B10
Saudi Arabia and Russia
are pushing to extend a
deal to limit oil output. B10
World-Wide
Residents braved rising waters on Monday in Beaumont Place, a community northeast of Houston’s city center. Residents were increasingly getting hemmed in by flooding.
Historic Floods Submerge Houston
Rescuers scour city
for trapped residents;
officials warn waters
will continue to rise
HOUSTON—Tropical Storm
Harvey continued to pummel
Texas, paralyzing greater
Houston and testing it on every front as the region braces
to take on more water in the
mayor said three deaths in
Houston had occurred during
the storm, but he couldn’t confirm reports that a family of
six had died in their vehicle.
Houston’s two major airports,
its biggest public school sys-
Houston
10
Many rivers and creeks
crested above or near
record highs, according to
gauges throughout
the area.
North Korea launched
at least one ballistic missile over Japan Tuesday,
the latest in a string of direct provocations that have
destabilized the region. A1
Trump reinstated police
agencies’ ability to get surplus military equipment, reversing an Obama-era ban. A3
The president defended
his decision to pardon Arpaio, calling the former Arizona sheriff a patriot. A3
A stabbing in Russia’s Dagestan left one police officer
dead, adding to worries
about improvised attacks. A7
China and India have
negotiated a solution to a
two-month-long standoff
on a Himalayan plateau. A6
A Trump Organization
attorney said he discussed a
prospective real-estate deal in
Moscow with Trump during
the presidential campaign. A2
U.K. and EU negotiators
resumed Brexit talks but officials played down the prospect of breakthroughs. A7
The U.S. called on Guatemala’s Morales to rethink his
attempt to expel a U.N.-backed
anticorruption prosecutor. A6
Pope Francis is set to go
to Myanmar in November
for a visit likely to highlight
the struggles of the country’s Muslim minority. A6
Markets............. B11-12
Opinion.............. A13-15
Sports........................ A12
Technology............... B4
U.S. News............. A2-5
Weather.................. A10
World News........ A6-7
>
Water level
Flood stage
1
2
BY PAUL PAGE
AND BRIAN BASKIN
TEXAS
Flood level reached
As of 9 p.m. ET Monday
Gulf of
Mexico
2. Buffalo Bayou
Major flood
Record
Major
Moderate
Other
3. San Jacinto
80
Record
.
50
50
PROJECTED
0
0
Aug. 26
0
Sept. 2
Source: National Weather Service
tems, its port and nearly all of
its major employers were closed
as freeways and major roads remained nearly unnavigable because of high waters. Nearly all
substantial commerce and nonemergency government operations had ground to a halt.
The city’s health-care system faced unprecedented
strains; floods cut off both
doctors and patients from hosPlease see HARVEY page A4
THE WALL STREET JOURNAL.
Trucking fleets, railroads
and shipping lines are rerouting cargo and setting up alternate supply lines as Tropical
Storm Harvey promises to disrupt freight traffic across
southeast Texas for days.
Seaports in Houston and
Corpus Christi have been
closed to most ships since before Harvey made landfall Friday, and rising waters from
days of heavy rains and catastrophic flooding are threatening long stretches of highways
and railroad tracks, bringing
freight transportation in a major American hub to a virtual
standstill.
The number of Houstonarea trucking runs requested
TOKYO—North
Korea
launched a ballistic missile over
Japan Tuesday, in the latest in a
string of direct provocations
that have destabilized the region and triggered global alarm.
The missile—the first Pyongyang has fired over Japan’s
main islands since 2009—
prompted a fiery response from
Japanese Prime Minister
Shinzo Abe.
“This outrageous action of
firing a missile over our country is an unprecedented, grave
and serious threat that seri-
ously damages peace and security in the region,” he said. “We
have firmly protested to North
Korea.”
Mr. Abe called for an emergency meeting of the United
Nations Security Council. He
said he spoke by phone with
President Donald Trump for 40
minutes and that the president
gave a “strong commitment” to
Japan’s security.
“We can confirm that the
missile launched by North Korea flew over Japan,” said U.S.
Army Col. Rob Manning, a Pentagon spokesman. “We are still
in the process of assessing this
launch.”
Gilead Bets $11 Billion
On New Cancer Therapy
BY JONATHAN D. ROCKOFF
AND DENISE ROLAND
Gilead Sciences Inc. on
Monday agreed to pay about
$11 billion for Kite Pharma
Inc., an ambitious bet on a new
type of cancer therapy that is
on the brink of becoming commercially available in the U.S.
Doctors say Kite’s main
treatment, which is up for regulatory approval in the U.S. and
Europe, could drastically improve treatment of patients
with some of the most advanced cases of cancer. EvaluatePharma expects Kite’s therapy to generate sales of $1.7
billion world-wide in 2022.
“This technology is really
going to be transformative to
the field,” Gilead CEO John
Milligan said in an interview.
The new breed of treatments, known as CAR-T—or
chimeric antigen receptor Tcell—therapy, work by extracting a cancer patient’s T-cells, a
type of immune cell. The T-cells
are then genetically modified
outside the body to make them
more effective at hunting down
and killing tumors, and then reinjected into the patient.
Several other companies
also are developing CAR-T
treatments—including SwitPlease see GILEAD page A2
Heard on the Street: Gilead has
shown what it can do............ B12
Harvey creates health-care
crisis.................................... A4
First day of school ends
up a washout................... A4
Gulf coast faces billions of
dollars in damages......... A5
Lawmakers face financial
challenges.......................... A5
Storm sows disarray in
the oil patch ...................... B1
The missile passed over the
northern Japanese island of
Hokkaido and landed in the Pacific Ocean about 14 minutes
after its launch early Tuesday
morning, Japan’s chief government spokesman Yoshihide
Suga said, splashing down in
the Pacific 733 miles east of
Hokkaido’s Cape Erimo.
South Korea’s Joint Chiefs
of Staff said the missile was
fired from near Sunan, a suburb of North Korea’s capital,
Pyongyang, where the city’s international airport is located.
They said the missile flew almost 1,700 miles and reached a
Please see KOREA page A8
plunged 80% Sunday, according
to the most recent data from
DAT Solutions, an online load
board. Union Pacific Corp. has
halted all freight rail traffic
bound for Houston and surrounding areas, while United
Parcel Service Inc. has suspended freight service in Houston and Beaumont, Texas, and
is offering limited service as
far west as San Antonio. Two
Maersk Line container ships
remain anchored in the Gulf of
Mexico, joining oil tankers and
cruise ships waiting for Houston’s port to reopen.
The gridlock will likely reverberate beyond Texas,
threatening to snarl international trade routes. Houston is
a key consolidation point for
imports of vehicles and appliPlease see CARGO page A5
INSIDE
North Korea Provokes Japan
BY JONATHAN CHENG
AND PETER LANDERS
Destructive Sweep
Freight Firms Face
Harvey Gridlock
3
Sample gauge readings, in feet
Harvey continued to pummel Texas, paralyzing greater
Houston and testing it on
every front as the region
braced for more flooding in
the coming days. A1, A4-A5
The storm is poised to
disrupt freight traffic across
southeast Texas for days. A1
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
By Erin Ailworth,
Dan Frosch
and Christopher M.
Matthews
45
Storm
Overwhelms
Waterways
1. GREENS BAYOU
CONTENTS
Banking & Fin..... B10
Business News.. B3,5
Capital Journal...... A2
Crossword.............. A10
Heard on Street. B12
Life & Arts......... A9-11
coming days.
Desperate rescue efforts
were still under way late Monday, even as the city strained
to perform basic functions.
Mayor Sylvester Turner said
Houston Police had rescued
more than 3,000 people during
the storm, including 1,000 on
Monday alone, while the city’s
fire department said it had received more than 2,300 calls
for service since midnight. The
PABLO MARTINEZ MONSIVAIS/AP
Investors are returning to
synthetic CDOs, a financialcrisis villain, reviving concerns about the products. B1
PABLO E. PIOVANO/BLOOMBERG NEWS
Gasoline prices surged
on shortage concerns after
Harvey knocked out refining
operations and traders tried
to assess damage. B1, B11
The Dow was weighed
down by declines in energy
and insurance shares as investors attempted to gauge
the storm’s impact. B12
JONATHAN BACHMAN/REUTERS
G
DEBUT OF
NEW IPHONE
NEARS
OUR POLITICAL
CENTRAL
BANKERS
BUSINESS & FINANCE, B1
OPINION, A14
Kentucky Has a Problem: It Has Too Many Colonels
i
i
i
Bevy of royalty, actors, electricians sparks governor’s crackdown
BY COL. ANDREW TANGEL
What do Kentucky Fried
Chicken founder Harland Sanders, Donald Trump Jr. and Betty
White have in common?
They’re all commissioned
Kentucky colonels, honorary
aides-de-camp to the commonwealth’s governor. They have no
official duties. Nor any perks,
not even a discount on mint juleps.
Yet the colonels’ ranks have
swelled since the War of 1812,
after which a militia commander joined the governor’s
staff with the title. Kentucky has
minted so many colonels some
have criticized the commissions
as willy-nilly.
“God knows how many actual members of the military, Walcolonels there are,” said Sherry Mart employees and actor
Crose, executive director of the Bryan Cranston, according to a
Honorable Order of
database reviewed by
Kentucky Colonels, a
The Wall Street Jourcharity that also sells
nal. Representatives of
colonel-themed Old
Mr. Cranston didn’t reFashioned
glasses,
spond to requests for
string ties and other
comment.
merchandise.
The data show colKentucky Gov. Matt
onels nominated by
Bevin has made it
Senate
Majority
tougher to become a
Leader Mitch McConcolonel. Last year, he
nell, the Kentucky Rerolled out an online
publican, and myriad
application with a
state politicians. New
Col. Sanders
charity requirement
colonels since late
aimed at renewing colonels’ “fo- 2015, when Mr. Bevin took ofcus on community service.”
fice, include a tattoo artist, reOver the past couple of years, tired electrician and Navy SEAL.
Please see TITLE page A8
new colonels have included
A2 | Tuesday, August 29, 2017
* *****
THE WALL STREET JOURNAL.
U.S. NEWS
Trump’s Squabbles: Careless or Calculated?
Here are two ways of
looking at how President
Donald Trump has spent his
August:
He has ruined the month—
perhaps even his presidency—by
mindlessly
picking fights
with Republican congressional leaders
and the media,
and by wallowing in divisive
cultural issues rather than
pushing his economic agenda.
But here is another:
Rather than stumble and
fumble into these controversies, Mr. Trump has quite deliberately chosen his issues
and his enemies.
He has drawn attention to
cultural issues—immigration,
his border wall, defending
Confederate symbols, Maricopa County Sheriff Joe Arpaio—because they speak to
middle America. They resonate with both his core supporters and a wider universe
of people who don’t love the
president but think the nation’s elites have walked away
from them on social issues.
GILEAD
Continued from Page One
zerland’s Novartis AG, which
already won a key regulatory
nod in the U.S. earlier this
year, and is expected very soon
to get the first official green
light to start offering the
treatment.
Gilead, of Foster City, Calif., had been looking for an
acquisition to diversify its
portfolio beyond its leading
position in infectious-disease
treatments and provide a new
revenue stream as sales of the
company’s hepatitis C drugs
decline.
The deal for Kite, of Santa
Monica, Calif., would be one of
Gilead’s biggest, on a par with
the company’s $11 billion purchase of liver-disease drugmaker Pharmasset in 2012.
Through that acquisition,
Gilead gained hepatitis C therapies that are among the
world’s top-selling drugs.
Now Gilead is betting that
Kite can provide a similar payoff. Dr. Milligan said Kite’s
technology could be used beyond its initial focus on an advanced form of lymphoma to
other blood cancers including
multiple myeloma and perhaps
away from the Democrats.
Democratic pollster Stanley
Greenberg calls immigration a
“critical element of the Democrats’ working-class challenge.” His survey work has
found that, among 2016 voters, white working-class
men—a traditional Democratic group who became a
core Trump constituency—
were twice as likely to call immigrants an economic burden
on the country as were college-educated white women, a
core Democratic constituency.
JOSHUA ROBERTS/REUTERS
CAPITAL JOURNAL
By Gerald F. Seib
Similarly, he has picked
his targets for wrath—the
media and the Republican
establishment—carefully
rather than cavalierly.
Targeting the news media
is a winner with his base as
well as a much broader segment of GOP votes. And by attacking Republican senators,
he is trying to be sure they
are blamed rather than him
for failures on health care—
while also creating grassroots pressure on them to
atone for that failure by delivering on tax reform this fall.
“He’s framing the fall,” says
Jason Miller, who was communications director of the
Trump campaign and maintains close ties to the White
House. “I think the president
masterfully knows how to
work the synergy of this counterculture, anti-Washingtonelite sentiment to help him
push forward on his agenda.”
At a rally in Phoenix last week President Donald Trump attacked the media and fellow Republicans.
C
hicago Mayor Rahm
Emanuel, who is in Mr.
Trump’s crosshairs
over his city’s policies toward
immigrants, thinks he sees
another motive: an attempt
to distract attention from the
administration’s failure to
produce economic policies
that help the working class.
“Each of these announcements is of a single piece: to
grab voters they have lost on
economic issues with cultural
red meat,” he says.
Heading into the fall, the
paramount economic issue
for the Republican Party and
the White House is tax reform and a broad tax cut.
Party leaders know they can
ill afford to fail.
Mr. Trump’s criticisms of
party leaders are designed,
Mr. Miller says, to add to the
pressure. The president is saying: The party establishment
failed me—and you—on
health care. It’s not my fault.
Don’t let them fail us on taxes.
n short, perhaps Mr.
Trump is simply doing
what he did during last
year’s presidential campaign,
which is to use controversy
and even seeming chaos to
show that he stands apart
from establishment forces
that many Americans think
have failed them. He won by
running essentially as a political independent and, after
seven rocky months in office,
he appears to be gambling
on that course again.
That doesn’t mean this is
the wisest approach. It’s certainly risky to think that an-
I
gering rather than wooing
congressional leaders of his
own party is going to produce a productive working
relationship this fall. It’s
equally hard to grasp why
Mr. Trump is pursing this approach after having eased out
of the White House its main
proponent, Steve Bannon.
Still, it isn’t mindless. It is
controversy generated for a
purpose.
Trump aides believe—and
there is ample evidence to
support them—that cultural
anxiety among working-class
voters was as big a factor
as economic anxiety in his
victory. Look at the issues
Mr. Trump touched upon in
recent weeks—transgender
Americans in the military,
sanctuary cities, the racially
charged march in Charlottesville—and you can see him
returning to that path.
In doing so, he has stoked
deep divisions in the country,
particularly with his language that appeared to
equate white supremacist
marchers with those who
protest them. Yet while many
in Washington hear defense
of neo-Nazi groups when Mr.
Trump talks, his supporters
make clear that what THEY
hear is defense of historic
Confederate statues—and, by
implication, a traditional version of American culture.
House Democratic leader
Nancy Pelosi has responded
by calling for removing every
Confederate statue from the
U.S. Capitol—something Mr.
Miller calls “a very dangerous spot of overreaching.”
Similarly, when Mr. Trump
revives tough immigration
talk, he is embracing an issue that helped him steal
white working-class voters
in combination with other immunotherapies.
While promising, CAR-T
treatments won’t be like other
drugs that win FDA approval,
and then quickly wind up on
pharmacy shelves and hospitals. The rollout of this new
breed will be complicated by
unresolved questions.
Manufacturing and delivery
are more complex than for a
typical drug. In the U.S., only a
few dozen specialized hospitals are currently qualified to
provide CAR-T treatments,
which require retrieving, processing and then returning immune cells to the patient, as
well as monitoring side effects.
Novartis said it expects between 30 and 35 centers to be
certified to offer the treatment
by the end of the year.
Some of the therapies that
various companies were working on have produced serious,
even deadly, side effects during development. Dr. Milligan
said doctors have learned how
to cut the risk of side effects.
Expense could also present
a hurdle: A study by England’s
National Institute for Health
and Care Excellence, an official
body that analyzes the cost-effectiveness of medical treatment, said CAR-T procedures
could command a price of up
to £528,600 (about $681,000).
The cost is similar to the total costs of some other cancer
therapies taken over the
course of several years, according to Stephan Grupp, who
was part of the team that first
developed Novartis’s treatment at the University of
Pennsylvania. But CAR-T therapy is conducted only once,
at patients with aggressive nonHodgkin lymphoma, for whom
standard therapy has failed.
Dr. Milligan, Gilead’s CEO,
said the company had been
eyeing Kite for months and decided to make a move after
Kite asked the FDA to approve
axi-cel and Gilead watched the
performance of treatments
from Novartis and others.
Gilead made its name selling treatments for HIV/AIDS.
The biotech company surged in
value after launching the hepatitis C treatments developed at
Pharmasset.
The
drugs,
Sovaldi and Harvoni, helped
Gilead double its sales in 2014.
It now has a market value of
roughly $100 billion.
Yet the anti-viral drugs’
commercial success has also
come with some problems.
Gilead faced public criticism
and a Senate investigation for
listing Sovaldi at $1,000 a
day—or $84,000 for a 12-week
treatment—even though the
therapy cured most patients at
a cost of less than a liver
transplant.
Gilead’s all-cash deal for Kite
is expected to close in the
fourth quarter, around the same
time as the deadline for U.S. approval of Kite’s main therapy.
—Dana Mattioli contributed
to this article.
Lawyer Says Trump
Told of Moscow Deal
The rollout of these
new treatments will
be complicated by
unresolved questions.
creating a comparatively steep
one-time payment.
Novartis hasn’t yet disclosed the price it plans to
charge for its treatment, called
CTL019, which has been shown
to dramatically raise the
chances of survival for children and young people with
leukemia who don’t respond to
standard treatment, or who
suffer a relapse.
So far, CAR-T therapies have
been tested only on certain
types of blood cancer. Kite
Pharma’s leading CAR-T treatment, known as axi-cel, is aimed
U.S. WATCH
MILITARY
NEW MEXICO
Groups Challenge
Transgender Ban
Two Dead in Shooting
At Public Library
Civil-liberties groups filed two
lawsuits challenging President
Donald Trump’s ban on transgender service members openly serving in the military, saying the prohibitions are unconstitutional.
The American Civil Liberties
Union of Maryland filed suit on
behalf of six current transgender
service members. Lambda Legal
and OutServe-SLDN filed a suit in
Seattle on behalf of a serving
transgender person, two who wish
to serve and two advocacy groups.
—Nancy A. Youssef
Two people were killed and
four others were injured when
gunfire erupted inside a public library on Monday, throwing an
eastern New Mexico community
into a panic as officers swarmed
the building with guns drawn.
The gunman surrendered and
was taken into custody after police entered the building in downtown Clovis, authorities said.
Clovis Mayor David Lansford
called the shooting tragic and
senseless.
—Associated Press
CORRECTIONS AMPLIFICATIONS
The Justice Department
has administered the president’s pardon power since
1893. A U.S. News article Monday about presidential pardons incorrectly said the department has handled that
responsibility since before the
Civil War.
ecutive vice president.
Stephen Rigali is a member
of the executive management
committee at Kayne Anderson
Rudnick Investment Management. A Markets article on Saturday about Friday’s market
activity incorrectly referred to
him with his former title of ex-
KonMari Media Inc. is legally registered in Delaware
and has its main operations
base in San Francisco. A Life &
Arts article Aug. 10 about tidiness guru Marie Kondo incorrectly said the company was
based in New Jersey.
MUBI Inc. offers an online
streaming service focusing on
art house cinema that costs
$5.99 a month. A Business
News article Aug. 19 about
niche video services incorrectly said it costs $4.99.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
BY REBECCA BALLHAUS
Michael Cohen, an attorney
for the Trump Organization,
discussed a prospective realestate deal in Moscow with
Donald Trump on three occasions during the presidential
campaign, Mr. Cohen said in
an interview with The Wall
Street Journal.
In 2015, Mr. Cohen said, he
informed the then-candidate
that he was working on a licensing deal for a Trump Tower in
Moscow. He subsequently asked
for and received Mr. Trump’s
signature on a nonbinding letter
of intent for the project in October 2015. And in January 2016,
he said, he informed the thencandidate that he had killed the
proposal. Mr. Cohen said each
conversation was brief.
Mr. Cohen’s communication
with the president about the
Moscow project may come under scrutiny because of a January 2016 email Mr. Cohen sent
to Russian President Vladimir
Putin’s top press official to ask
for “assistance” in arranging
the deal. Mr. Cohen said he
didn’t inform Mr. Trump that
he had sent the email to the
press official, Dmitry Peskov.
He didn’t respond when asked
why he hadn’t done so.
In the email to Mr. Peskov,
Mr. Cohen said communication
between the Trump Organization and a Russia-based company that was the prospective
developer of the tower had
“stalled” and said, “As this
project is too important, I am
hereby requesting your assistance. I respectfully request
someone, preferably you, contact me so that I might discuss
the specifics as well as arranging meetings with the appropriate individuals.” The email was
sent to a broader press email
address but was addressed to
Mr. Peskov, according to a person familiar with the email.
The email was reported by
the Washington Post on Mon-
day and was confirmed by a
person familiar with the exchange.
Mr. Cohen said in the Journal interview that he didn’t recall receiving a response from
Mr. Peskov and opted to abandon the project weeks later.
Mr. Peskov didn’t return a request for comment.
The White House declined
to comment and referred
questions to Mr. Cohen’s attorney, who didn’t respond to requests for comment.
Trump associates’ contacts
with Russian officials have
come under scrutiny as special
counsel Robert Mueller investigates Moscow’s efforts to interfere with the U.S. presidential
election, as well as whether
Trump associates colluded in
that effort. Mr. Trump has denied any collusion, and Moscow
has denied U.S. intelligence
agencies’ assessment that Russia interfered in the election.
Mr. Trump’s awareness of his
company’s efforts to procure a
business deal in Moscow, as described by Mr. Cohen, came
during the campaign when he
often praised Mr. Putin.
In December 2015, Mr.
Trump in an NBC interview
compared Mr. Putin more favorably to then-President Barack Obama. “He’s running his
country and at least he’s a
leader, unlike what we have in
this country,” Mr. Trump said
of Mr. Putin.
A spokesman for the Trump
Organization said in a statement that Mr. Cohen abandoned the Moscow proposal in
January 2016 and said the
prospective deal “was not significantly advanced (i.e., there
was no site, no financing, and
no development).”
The Trump Organization on
Monday turned both email exchanges over to the House Intelligence Committee, which is
investigating the alleged Russian election meddling, a person familiar with the move said.
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THE WALL STREET JOURNAL.
Tuesday, August 29, 2017 | A3
* *
U.S. NEWS
Protests Present a Balancing Act
Cities and universities
struggle to thwart
violence without
stifling free speech
Police
To Regain
Military
Equipment
BY ARUNA VISWANATHA
Cities and public universities are evaluating ways to
prevent unruly protests without limiting free speech-rights
in the wake of the recent violence in Charlottesville, Va.,
and Berkeley, Calif., a balancing act likely to tie up lawyers
and public dollars in the coming months.
That challenge gained urgency over the weekend when
clashes erupted at the site of a
demonstration in Berkeley,
leading to more than a dozen
arrests. The protesters chanted
antifascist slogans and denounced white supremacists.
“There’s a difference between free expression on the
one hand and violence on the
other,” said Mike Feuer, the
Los Angeles city attorney.
Mr. Feuer said that while he
strongly supports peaceful
protest, he would like to more
heavily scrutinize those applying for permits to make sure
they don’t have plans to incite
violence. The Los Angeles Police Commission, with consultation from Mr. Feuer’s office,
runs the permitting process.
The constitutional right to
free speech is ingrained in the
public consciousness, and those
on both sides of the political
spectrum typically agree that
attempts to constrain the First
Amendment can be fraught.
“When talking about the
First Amendment, the thing
that we are most terrified of is
that the government is choosing either people they like or
messages they like,” said Jessica Levinson, a professor at
Loyola Law School in Los Angeles.
Cities and other public entities are allowed under the
First Amendment to limit the
President Donald Trump reinstated the ability of local police agencies to receive surplus
military equipment, including
grenade launchers and largecaliber weapons, reversing a
ban the Obama administration
implemented after protests over
police tactics in Ferguson, Mo.
Attorney General Jeff Sessions, who has overturned a series of Obama-era directives
opposed by many police departments, announced the change
in a speech before the National
Fraternal Order of Police, the
nation’s largest police union.
“We will not put superficial
concerns above public safety,”
Mr. Sessions told police officers in Nashville, Tenn.
Monday’s directive rescinds
a 2015 executive order by former President Barack Obama
that barred police agencies
from getting tank-like armored
vehicles and other equipment
from the military and imposed
stricter controls on other
products, including unmanned
aerial vehicles and riot gear.
That ban was prompted by
images of officers using such
equipment at protests in Ferguson in the aftermath of the 2014
shooting death by an officer of
an unarmed 18-year-old black
man, Michael Brown. The White
House revoked Mr. Obama’s order in an executive order.
Civil-rights activists said
having military vehicles and
similar equipment in local
communities suggests a police
force at war with residents.
“When the federal government is putting weapons of
war in our communities, there
needs to be some accountability,” said American Civil Liberties Union Legislative Counsel
Kanya Bennett.
JOSH EDELSON/ASSOCIATED PRESS
BY SARA RANDAZZO
Demonstrators argued during a rally on Sunday in Berkeley, Calif., where violent scuffles erupted and 13 people were arrested.
time, place and manner of
speech or public assembly, as
long as the restrictions are applied evenly and not as a
means of suppressing speech.
But finding grounds to deny
a permit ahead of time can be
tricky, legal experts said, because it isn’t enough to say violence might occur. Instead,
there must be evidence that
the protesters clearly intend
to incite violence.
“It becomes a really difficult call, in terms of, at what
point do you say there’s an imminent threat of violence?”
Ms. Levinson said. Courts have
been wary of censoring events
before they happen, she said.
Mr. Feuer said denying a
permit would be the last resort. The city could also control events by prohibiting what
people bring, creating physical
barriers between protesters
and counterprotesters, and deploying more law enforcement.
He pointed to Boston, which
banned sticks, bats and backpacks ahead of a white supremacist rally this month and cordoned off counterprotesters.
“There’s no First Amendment right to carry a stick,”
Mr. Feuer said.
Restricting what protesters
can bring also risks butting up
against another constitutional
right, the Second Amendment’s
right to bear arms, especially
in states that allow weapons to
be carried openly. The American Civil Liberties Union recently reaffirmed it will no longer defend hate groups seeking
to march with firearms.
Officials in San Francisco
approved a rally permit last
week on the condition that
guns be banned, even for those
with concealed carry permits,
along with anything else that
could be considered a weapon
and a long list of other items
including selfie sticks, helmets
and balloons. Organizers of
that protest ended up canceling the event, citing safety
concerns, but left-wing counterprotesters still streamed
into the city Saturday.
In Berkeley, counterprotesters had arrived over the weekend to oppose a planned “No to
Marxism” demonstration that
also was canceled by organizers
Friday. City officials had denied
a permit to the Berkeley event.
Universities have slightly
more leeway when deciding
how to control events, and it
can matter if speakers are invited by a student or faculty,
or are looking to rent space on
campus for their own event.
At least five universities
have denied recent requests by
white nationalist Richard
Spencer’s organization to hold
events on campus, including
Pennsylvania State University,
the University of Florida and
Michigan State University.
School officials all cited the
violence in Charlottesville and
a need to protect student
safety. Penn State President
Eric Barron said “the First
Amendment does not require
our University to risk imminent violence.”
Lee Tyner, general counsel
of the University of Mississippi, said that more than in
the past, people seem to be
using universities “as a platform for the fight,” which
raises different considerations.
A university’s primary obligations, he said, are to their students and faculty, not to providing a forum for any
member of the public to speak.
Trump Defends Pardon of Arizona Ex-Sheriff Arpaio
T.J. KIRKPATRICK/BLOOMBERG NEWS
BY PETER NICHOLAS
President Donald Trump defended his pardon of a former Arizona
sheriff at an event Monday with President Sauli Niinistö of Finland.
WASHINGTON—President
Donald Trump defended his
decision to pardon former Arizona Sheriff Joe Arpaio, calling him a patriot and suggesting that his predecessors
granted clemency to people
who were undeserving.
“Sheriff Joe is a great veteran of the military and a
great law-enforcement person,
somebody that has won many,
many elections in the state of
Arizona,” Mr. Trump said.
Mr. Trump also accused the
Obama administration of
pressing a criminal case
The superlative-charged chronograph. 50 mm case in Breitlight®. Exclusive Manufacture
Breitling Caliber B12 with 24-hour military-style display. Officially chronometer-certified.
against Mr. Arpaio in an attempt to sway voters.
Mr. Arpaio, who served as
sheriff of Maricopa County,
Ariz., for 24 years, lost a reelection bid in November. Less
than a month before the election, federal prosecutors said
they would proceed with their
criminal-contempt case.
“I thought he was treated
unbelievably unfairly when
they came down with the big
decision to go get him right
before the voting started,” Mr.
Trump said. “They just hammered him before the election.
I thought that was a very unfair thing to do.”
Mr. Trump pardoned the 85year-old former sheriff on Friday. Mr. Arpaio had been convicted last month of violating a
2011 federal court order to stop
immigration raids. He faced as
many as six months in jail and
was to be sentenced on Oct. 5.
Mr. Arpaio told the Washington Examiner in an interview that he is considering another run for elective office—
possibly the Senate seat now
held by Republican Jeff Flake.
Mr. Flake criticized the
president for issuing the pardon, saying he would have
preferred that the president
“honor the judicial process
and let it take its course.”
As sheriff, Mr. Arpaio took
a hard-line stance toward illegal immigration, using tactics
that included workplace raids
and traffic stops. He also
gained a reputation for holding county inmates outdoors
in the Arizona heat.
The pardon drew criticism
from officials in both parties,
including House Speaker Paul
Ryan (R., Wis.), who said
through a spokesman Saturday
that he didn’t agree with the
move and “law-enforcement
officials have a special responsibility to respect the rights of
everyone in the United States.”
A4 | Tuesday, August 29, 2017
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TEXAS BATTLES FLOODING
Harvey Creates a Crisis in Health Care
Hospitals and staff
struggle to deliver
care as storm cuts off
access and supplies
Doctors
waded
miles
through Houston’s flooded
roads to reach their clinics.
Other medical staff camped
out at their hospitals for days,
catching some sleep on cots
between shifts. One medical
facility was forced to evacuate
patients by boat.
The health-care system in
the nation’s fourth-largest city
strained to deliver care as
floodwaters thwarted cancer
and kidney-dialysis treatment,
stalled ambulance traffic and
left hospital officials worriedly
monitoring dwindling supplies
of food and medicines.
Houston is home to the
Texas Medical Center, a
sprawling health-care and
medical-research complex that
includes nationally known institutions including MD Anderson Cancer Center, the
Houston Methodist DeBakey
Heart & Vascular Center and
the Texas Children’s Hospital.
“We’re very worried right
now about the health and well
being of our patients, families
and our staff in Greater Houston,” said Cris Daskevich, se-
JOE RAEDLE/GETTY IMAGES
By Melanie Evans,
Joseph Walker
and Peter Loftus
Dean Mize holds children as he and Jason Legnon use an airboat to rescue people from homes inundated with flooding from Harvey.
nior vice president of Texas
Children’s Hospital, which
closed its outpatient clinics
and canceled most outpatient
procedures Monday. “There’s
been a great deal of loss and
devastation.”
At Houston’s Catholic
Health Initiatives’ St. Luke’s
Health—Vintage
Hospital,
First Day of School
Ends Up a Washout
BY MELISSA KORN
AND TAWNELL D. HOBBS
A new school year set to
begin Monday in the Houston
area got off to a dramatic
start, as administrators faced
classrooms and facilities filling with water rather than
with students amid the unprecedented flooding.
At least two dozen public
school districts in southeast
Texas have been closed until
at least Sept. 5 as administrators assess damage, while
classes at a number of colleges
and universities around the region have been suspended.
“We wanted to start the
year with a whirlwind tour, and
we had nothing in mind like
this,” said Richard Carranza,
superintendent of Houston In-
dependent School District.
Mr. Carranza said about 35
of 50 schools assessed so far
have water intrusion or flooding, and roughly 230 more
schools still need to be reviewed—though those aren’t
expected to have severe damage. Water damage and power
issues will likely be the most
prevalent concerns, he added.
The district, meanwhile,
closed emergency shelters that
had been operating at schools
at the request of the mayor’s
emergency management office
due to safety concerns.
Dallas Independent School
District officials said they anticipate enrolling the children
of families evacuated to Dallas.
It is too early to tell how many
evacuees would attend Dallas
schools, a spokeswoman said.
Houston has seen localized rainfall totals exceeding 40 inches, putting much of the city under water.
30 miles
Rainfall for the 96 hours ending 5 p.m. Monday
5
10
15
20
25
30
35
40 inches
Projected path
LOUISIANA
College Station
2 p.m. Wednesday
Austin
TEXAS
Houston
Intercontinental
Lake Charles
Beaumont
Houston
Columbus
San
Antonio
Galveston
Bay City
Cumulative rainfall totals since Thursday
30 .inches
2 p.m. Tuesday
Houston
Intercontinental
25
Harvey’s location
at 5 p.m. Monday
20
Corpus Christi
15
Beaumont
Bay City
College Station
Columbus
10
Galveston
Gulf of Mexico
y’s
pa
th
With Tropical Storm Harvey
dumping record rainfall on
Houston, the U.S. Army Corps
of Engineers faced a dilemma
as water volumes rose to perilous levels in its two reservoirs west of the city center.
The options: ordering controlled releases of water from
two dams, adding to flooding
in neighborhoods; or risk having water pour around or over
the earthen dams, potentially
rupturing them and causing
far greater damage.
The Army Corps chose to
let water out deliberately
through Buffalo Bayou, a river
that cuts through downtown
Houston. Even with the controlled release, Army Corps officials expect reservoir levels
to rise throughout the week.
Harris County Judge Ed Emmett, the county’s chief executive, said the Army Corps was
striking “a delicate balance”
between protecting homes and
preserving the dams’ integrity.
County officials have asked
residents living near the reservoirs to evacuate voluntarily.
The volume of water hitting
the Addicks and Barker dams,
both built in the 1940s, is “unprecedented in the dams’ histories,” said Edmond J. Russo
Jr., deputy district engineer
for the Army Corps.
pital evacuation. The only way
to get patients out, she and
other officials determined,
was by boat.
By midafternoon Monday
boats had ferried 10 of the
hospital’s 44 patients to waiting ambulances on drier land,
Ms. Shoemaker said.
Small teams of physicians,
Relentless Rain Soaks South Texas
r ve
BY CAMERON MCWHIRTER
AND ERIN AILWORTH
couldn’t get to her Houston office, began coordinating the
evacuation from her home in
Missouri City, Texas. But by 6
a.m., she was evacuating not
just the hospital but her own
home.
Ms. Shoemaker quickly
moved to a hotel, where she
continued overseeing the hos-
Ha
Rising Reservoirs Pose
Possible Issue for Dams
floodwaters encircled the
building like a moat. Water began seeping into the facility,
forcing officials to start evacuation plans at 1:30 a.m. Monday, said Lorie Shoemaker,
chief nurse for the Texas hospitals of Catholic Health Initiatives, which runs Vintage.
Ms.
Shoemaker,
who
nurses and physician assistants camped out over the
weekend at MD Anderson Cancer Center to care for patients
who were too sick to be sent
home, said Robert Coleman, a
specialist in gynecologic oncology and reproductive medicine.
Flooding of the streets surrounding the center made it
mostly impossible for staff
members to enter or leave the
hospital over the weekend, he
said.
MD Anderson, part of the
University of Texas and one of
the largest and most respected
cancer centers in the world,
was closed on Monday for all
outpatient services, appointments and surgeries, and said
those services would remain
closed through Tuesday.
Adi Diab, an MD Anderson
melanoma specialist, walked 3
miles on Monday through 1foot deep waters from his
home to the hospital to attend
to a patient undergoing an experimental cancer treatment.
Because Dr. Diab and his
colleagues were able to make
it to the hospital, the patient
treatment would go forward
as planned, according to Dr.
Diab, who planned to stay at
the hospital until late Monday
evening.
“I’m going to stay because
it’s my patient, so I need to
make sure” the treatment is
completed successfully, Dr.
Diab said. “Thank God everything worked out.”
5
0
Note: All times Eastern
Friday
Saturday
Sunday
Monday
Why Houston is prone to flooding
Population growth
The Houston metro area had the
highest growth rate eight straight
years until 2017. Its population grew
by more than 12% in 2016 to 4.6
million from 2010, adding about
100,000 residents every year. The
influx of people required more housing
and infrastructure. To accommodate
all the newcomers, wetlands and
prairie land that once soaked up
rainwater have been built over with
concrete and other impervious
surfaces that can’t absorb water.
Population by tract
2,500
1990
5,000
10,000
2015
Houston
city limits
Development
Bad drainage
The prairies and wetlands that
were once capable of holding
large amounts of water have
been paved over in favor of
asphalt and concrete that have
been built to support
large-scale developments like
apartments, offices, shopping
malls and roads. Now, when it
rains in Houston, water flows
into neighboring areas rather
than being soaked into the
ground, causing floods.
The area’s drainage system
was built for a 10-year flood,
a more likely and milder
event. Houston officials
have been trying to build up
existing drainage networks
to a 25-year flood level but
it is a costly process. The
city’s geography also inhibits
proper drainage. It is
low-lying and most of its
soil is clay, which doesn’t
drain well.
Sources: NOAA (rainfall map, storm track); National Weather Service via Iowa Environmental Mesonet (rainfall chart); Longitudinal Tract Database, Brown University (population)
Renée Rigdon and Max Rust/THE WALL STREET JOURNAL.
HARVEY
Continued from Page One
pitals, and forced several hospitals to evacuate.
Roads surrounding Houston’s Vintage and Sugar Land
hospitals “have 8 feet of water,” said Michael Covert, senior vice president of Catholic
Health Initiatives’s Texas operations. “They have become islands of humanity.”
From the mansions of Houston’s well-to-do River Oaks
neighborhood, to the hipster cafes of the Heights area north of
downtown, to the working-class
neighborhoods of the city’s east
end, the storm’s wrath spared
virtually no one.
More than 30 inches of rain
had fallen over parts of the area
by Monday, inundating homes
and requiring rescue attempts
for thousands of stranded people to date, as Harvey moved
back over the Gulf of Mexico and
headed east along the coast, according to the National Hurricane Center.
The U.S. Coast Guard said it
had devoted every available resource to responding to the disaster. It was getting upward of
1,000 calls an hour and had rescued more than 3,000 people on
Monday, it said. Its efforts in
Houston had been made difficult, it said, because the tropical
storm was still raging, unlike
Hurricane Katrina where recovery operations unfolded after
the storm had ended.
The historic rains were forcing Houston area officials to
make painful decisions to evacuate flooded areas—and to release water from reservoirs under strain, knowing that it would
flow into nearby neighborhoods.
Harvey was on track to make
landfall again east of Houston
late Tuesday or Wednesday.
Though it wasn’t expected to
regain much strength, it was
poised to deliver as much as 20
more inches of rain before
passing—making the total, 50
inches, the equivalent of a normal year’s worth of rain for
Houston in one week.
“The reality is the water is
continuing to rise,” Mr. Turner,
the Houston mayor, said Monday. “The water level along Buffalo Bayou in all likelihood will
increase.”
Buffalo Bayou is the main waterway that snakes through the
heart of Houston, and the water
levels of two reservoirs that feed
into it are particularly concerning. The Addicks and Barker reservoirs, built in the 1940s to protect downtown and the Houston
Ship Channel downstream, were
beyond capacity, prompting the
U.S. Army Corps of Engineers to
release water from them strategically and to ask residents
nearby to voluntarily evacuate.
Mr. Turner said there were
4,800 people staying at the
George R. Brown convention
center, which was opened as an
emergency shelter. He has previously said its capacity is about
5,000, but said Monday night
that officials wouldn’t turn anyone away. Hundreds more were
spending the night in other shelters around the city and Harris
County.
Houston’s 800-mile web of
bayous and creeks continued to
swell.
North of Houston, Cypress
Creek was among the most
flooded, with water pouring into
homes across several square
miles. That, in turn, was
prompting numerous harrowing
evacuations, administered for
the most part by friends, neighbors and other people in the
community.
Kelly Adams, 55 years old,
went out on a friend’s jet ski
Monday morning to save a few
former neighbors who were
stranded. “We have to do everything we can,” he said. “We
know there are more people
out there.”
Near Tidwell Park, a less affluent section of northeast
Houston, residents were getting
hemmed in by flooding and
some here said they had no way
out. Half-sunken cars littered the
streets and several stores
nearby appeared to have been
looted.
Brandi
Tillman
waded
through waist-high murky flood
water to reach her mother, who
takes medication for blood pressure and lives in an apartment
complex nearly surrounded by
several feet of water. Ms.
Tillman inched forward, clutching a fence for balance. She
couldn’t swim, she said, but
needed to reach her mom.
On 11th Street, one the
Heights neighborhood’s main
drags, one of the few businesses
with its lights still on was family-owned C&D Hardware and
Gifts.
“We only close five days out
of the year, and this ain’t one of
them,” said store manager Arthur Buchanan, who’d ridden his
bike through the floods to work
that day. Mr. Buchanan said that
if the water got any higher, he’d
bring his shotgun with him, in
case any water moccasins and
copperheads came by.
Harvey is likely to deal a significant blow to Houston’s economy, the nation’s fourth largest
city, whose gross domestic product—$503 billion in 2015, according to the most recent data
from the Department of Commerce—is larger than that of Poland, Thailand or Nigeria.
President Donald Trump said
Monday that he expects Texas to
recover fully and anticipated
that “you’re going to see very
rapid action from Congress” in
the form of disaster relief funds.
—Bradley Olson,
Michael C. Bender, Arian
Campo-Flores, Ben Kesling,
Russell Gold, Melanie Evans
and Miguel Bustillo
contributed to this article.
THE WALL STREET JOURNAL.
Tuesday, August 29, 2017 | A5
* *
TEXAS BATTLES FLOODING
BY JOSH ZUMBRUN
Hurricane Harvey will take
a financial toll on the nation’s
economy, but how much of
one depends on the extent of
flooding in the coming days.
Even after the immediate
threat from Hurricane Harvey
has passed and the floodwaters receded, the Texas Gulf
Coast faces tens of billions of
dollars in property damage,
bottlenecks at some of the nation’s largest oil refineries,
and work disruptions possibly
for millions of workers.
“The damage will likely be
much higher than most recent
hurricanes have been,” said
Adam Kamins, senior economist at Moody’s Analytics.
There are “very high levels of
housing density where some
of the most severe flooding is
taking place. Because of that
you have very high expected
property and vehicle damage.”
Moreover, the storm could
affect the economy nationwide
due to the large oil refining
presence in the Gulf Coast. Refiners in Corpus Christi, Lake
Charles and Houston have
about 30% of the nation’s oil
refining capacity.
Gasoline futures rose 7
cents to $1.74 a gallon on the
New York Mercantile Exchange
on Monday. That is likely to be
temporary.
Gasoline prices have typically peaked within two weeks
of major storms, rising by 20
to 80 cents a gallon, said Rick
Joswick, managing director of
global oil for PIRA Energy, an
analytics unit of S&P Global
Platts. Prices typically return
to their prestorm levels, or
somewhat lower, within two to
four weeks.
The “outlook is for gasoline
prices to spike by a similar degree for the next week or so,”
Mr. Joswick said.
The biggest hit from any
storm is to insurers and property owners. Moody’s preliminary estimate is that the
storm will cause between $30
billion and $40 billion of property damage. Mr. Kamins cautions these are initial estimates and could change
significantly depending on
how the storm evolves.
By contrast, the National
Oceanic and Atmospheric Administration estimates that
Hurricane Ike, which hit Texas
and Louisiana in 2008, caused
about $29 billion of damage,
while Hurricane Rita in 2005
cost about $12 billion. If the
Moody’s estimate proves correct, it would be considerably
less damage than 2005’s Hurricane Katrina, which caused
over $100 billion in damage.
Superstorm Sandy of 2012 is
estimated to have caused $71
billion in damage.
Most of Hurricane Harvey’s
economic impact will be concentrated. The Houston area is
the nation’s fourth-largest
metropolitan economy, with
WILLIAM LUTHER/SAN ANTONIO EXPRESS-NEWS/ZUMA PRESS; U.S. COAST GUARD/GETTY IMAGES
Gulf Coast
Faces Billions
In Damage
Property damage was heavy in Rockport, Texas. Below, a listing ship spotted by the U.S. Coast Guard in the aftermath of Harvey.
about 3.1 million workers who
generate over $500 billion of
economic activity a year.
It remains unclear how long
Houstonians and other Texans
will be dealing with closed
stores or idled and unreachable
workplaces, but Moody’s estimates thus far that there will
be $6 billion to $8 billion in
lost output in the weeks ahead.
That is barely perceptible in a
U.S. economy that produces
more than $19 trillion worth of
goods and services annually.
Even the largest storms
have typically not permanently damaged the U.S. economy. This is in part because
storm often spark construction booms that employ tens
of thousands of people to
clean up and rebuild.
Gross domestic product
doesn’t account for property
damage but it does account
for rebuilding, so the measure
can climb after storms due to
activity involved in rebuilding.
Other economic measures
could be skewed in the weeks
ahead. The initial weeks after
similarly large storms have
sometimes produced rising
claims by waylaid workers for
unemployment insurance. After Hurricane Katrina, jobless
claims climbed by over
100,000 a week.
Michael Feroli and Daniel
Silver, economists at J.P. Morgan Chase & Co., said in a note
that other signs of the storm’s
impact could be seen in industrial production data, which
will show the effect of power
outages on utilities, and in
personal spending data.
Houston Still Closed for Business Lawmakers Facing
Most major businesses in
and around Houston were
closed on Monday, with many
telling employees to stay
home as they waited for floodwaters to recede and started
collecting funds for disasterrelief organizations.
Many area hospitals remained open but some were
evacuating patients due to
flood damage. Other big employers, including energy giants like ConocoPhillips,
NASA’s Johnson Space Center,
and Waste Management Inc.,
were closed for the day. The
city’s biggest malls were shut,
as were many area grocers, retailers and restaurants.
Johnson Space Center,
which employs more than
10,000 people, asked employees except “mission essential
personnel” to stay home Monday unless otherwise instructed. Senior management
will reassess opening on a dayto-day basis, the center said.
Several companies, including ConocoPhillips and BMC
Software Inc., said their offices planned to reopen as
soon as Wednesday, weather
permitting. BMC, which employs about 900 people in the
LUKE SHARRETT/BLOOMBERG NEWS
BY MICHELLE MA
Kroger closed most of its Houston-area stores as the storm hit.
Houston area, has encouraged
area employees who are safe
and able to work to work remotely, said Chief Executive
Peter Leav in a statement.
Waste Management, which
has about 1,000 corporate
staff at its Houston headquarters, instructed those employees to work from home. The
country’s largest trash hauler
had canceled Monday rubbish
removal for customers in several cities and nearby areas,
including Houston, The Woodlands, Jacinto City and Galveston, according to its website.
The company reopened
three out of six landfills in the
Houston area Monday morning, but later closed them
again. “Getting to them is next
to impossible,” said Toni Beck,
vice president of corporate
communications.
Kroger Co. closed all but a
handful of its 115 Houston-area
stores for 24 hours as Harvey
made landfall, and 65 remained
closed
Monday.
Kroger’s main distribution
center in the area was closed,
and the nation’s largest grocer
was pulling products from a
Dallas warehouse instead.
“It’s a logistical nightmare
Financial Challenges
there,” a Kroger spokeswoman
said.
HEB Grocery Co., a San Antonio-based grocery chain,
said around 40 of its 100
Houston-area stores remain
closed and many others were
operating with limited hours.
The company has a mobile
kitchen that was expected to
provide more than 8,000
meals by the end of Monday,
and a convoy of 15 vehicles
was delivering supplies to affected areas.
Group 1 Automotive Inc.,
which owns around 20 car
dealerships in the Houston
area and whose corporate
headquarters are also in the
city, said it doesn’t have immediate plans for reopening
its locations. “Once we can get
a firm understanding of how
everyone’s well-being is, then
we will assess operations,”
said Pete DeLongchamps, a
vice president.
The company, which also
has dealerships in New Orleans, “went through something similar but not on this
scale with Katrina,” said Mr.
DeLongchamps.
—Heather Haddon, Jennifer
Maloney, Daniela Hernandez
and Sarah Nassauer
contributed to this article.
WASHINGTON—Hurricane
Harvey leaves Congress with a
pair of unexpected financial
challenges: further shoring up
a heavily indebted federal
flood insurance program and
providing emergency funding
for uncovered damage.
U.S. COAST GUARD /GETTY IMAGES
Ports in Houston and Corpus Christi are closed to most ships. A boat sinks near Port Aransas Saturday.
or trucks to resume routes.
“This may be unprecedented when all is said and
done,” said Mark Rourke, chief
operating officer at Schneider
National Inc., a large Green
Bay, Wis.-based trucking company. He said it could be three
days before Schneider employees can access some terminals
in the city and potentially two
weeks before normal operations resume.
Darren Hawkins, president of
Overland Park, Kan.-based YRC
Freight, said the trucking company’s terminal in Houston has
remained closed since Friday,
when workers were sent home,
and the company hasn’t decided
when it will be able to reopen.
“We have about 3 feet of
standing water in the parking
lot,” he said.
YRC has been holding
freight bound for Texas near
the origin point since the middle of last week, adding trailers
to keep goods at sites throughout its nationwide network.
Mr. Hawkins said YRC was
bringing some critical shipments needed for relief, including generators and bottled
water, to staging areas authorities have set up around Houston. But it could be some time
before operations get back to
normal, he said.
“By the time the city is
open again, there is going to
be a tremendous amount of
tonnage going in,” Mr. Hawkins
said. “This is looking like a
multiday event, and so it’s not
over, and means the recovery
will be that much longer. With
Katrina, we had almost immediate access [after the storm
surge] to the area. That’s not
the case with Houston.”
Many freight movers are
likely to see booming business
once waters recede and people
turn to rebuilding their homes
and businesses.
Kirby Corp., a Houstonbased barge and tugboat operator, has had its vessels in the
region tied up in areas outside
sea currents and expects to get
them moving to meet pent-up
demand for energy and other
shipments once the rain stops
and floodwaters recede.
“We anticipate, based on
our experience, that our
phones will be ringing off the
hook,” said Matt Woodruff, director of public and government affairs at Kirby.
But Mr. Woodruff added that
the Coast Guard and U.S. Army
Corps of Engineers would have
to survey the waters for debris
and shifted shoals before shipping channels open.
Flooding could lead to ris-
ing levels of silt in the Houston ship channel, said Paul
Bingham, a trade economist
with Economic Development
Research Group Inc. Port pilots, who board incoming
ships and navigate them up
the channel, will likely be hesitant to run vessels through a
shallower channel until the
Coast Guard has had a chance
to test the depth.
The solution for now, Mr.
Bingham said, will be to load
ships lighter—and carry less
than their capacity of petroleum products, bulk goods and
containers. For container
cargo, that could mean shipping companies would have to
unload more goods at other
ports before visiting Houston.
Port Houston, which appeared to avoid damage, said
Monday afternoon it would remain closed on Tuesday.
For some carriers, all that is
left to do is wait. “We are supposed to load up in Houston, in
Corpus Christi, early Sunday,
but nothing still goes in or
out,” said Aristos Pitsilis, the
executive officer of a Greekowned oil tanker. “We’ve been
told that maybe tomorrow
we’ll make our way.”
—Erica E. Phillips, Paul
Ziobro and Costas Paris
contributed to this article.
By Andrew Ackerman,
Kristina Peterson
and Rachel Witkowski
CARGO
Continued from Page One
ances made in Mexico, and
stores as far away as Denver
bring in foreign-made goods
via the city’s port.
The storm affected up to
10% of the U.S.’s trucking capacity, according to Noël Perry,
chief economist with Truckstop.com, another online load
board. Retailers and other
shippers around the country
may struggle to line up enough
trucks to ship goods. And
many trucks that are available
are being turned over to relief
and rebuilding efforts. WalMart Stores Inc. has sent more
than 1,000 big rigs to hard-hit
areas and evacuation centers,
with most carrying water.
Shipping costs could rise
anywhere from 5% to 22%, Mr.
Perry said, based on the market’s response to past natural
disasters, including Hurricane
Katrina and the “polar vortex”
that hit the Northeast in 2014.
Many freight companies say
they have no idea when they
will resume operations. Even
after the weather clears, it
could be days before floodwaters recede enough to allow
dockworkers back into ports,
Lawmakers will be under
pressure when they return to
Washington next week to extend the National Flood Insurance Program after the flooding disaster crippled coastal
Texas and Louisiana.
The insurance program,
created about 50 years ago because private insurers were
unwilling to risk catastrophic
flood losses, is scheduled to
expire Sept. 30.
It has a mere $1.7 billion to
pay claims and $5.8 billion left
that it can borrow from the
Treasury, according to the
Federal Emergency Management Agency, which manages
the program.
Congress likely will have
to raise the program’s bor-
rowing authority should
claims exceed its current cap,
these people said. The contentious flood program went
through 17 temporary extensions and four lapses during
legislative disputes from
2008 to 2012.
Another issue lawmakers
face is emergency aid to address damage that isn’t insured, a process that has been
controversial on Capitol Hill in
recent years. Many conservative Republicans opposed federal aid after superstorm
Sandy slammed the East Coast
in 2012.
In January 2013, Congress
approved a $50.5 billion package to help states rebuild after
Sandy, as well as a $9.7 billion
increase in the borrowing authority of the flood insurance
program.
Aides from both parties
said it was too early to know
how much federal assistance
would be needed for Harvey
recovery. But already, tension
among Republicans was apparent, as GOP lawmakers who
fought for aid after Sandy
noted that many Texas Republicans had opposed it
A6 | Tuesday, August 29, 2017
THE WALL STREET JOURNAL.
NY
WORLD NEWS
China and India Resolve Border Standoff
Deal between the
longtime rivals ends
their stalemate on a
Himalayan plateau
Dolam
Plateau
New
Delhi
200 miles
200 km
B H U TA N
NEPAL
INDIA
China and India said they
had negotiated a solution to a
more than two-month-long
has aggravated broader conflict between the two countries over competing spheres
of influence and China’s closer
ties with Pakistan. “There are
multiple conflicts between the
two countries,” he said.
In a press conference earlier Monday previewing next
month’s Brics summit, Chinese
officials played down the border dispute and emphasized
trade prospects between China
and India.
Zhang Jianping, an official
at a research institute under
China’s Commerce Ministry,
said the summit was an “excellent opportunity” for India
and China to work out any differences face-to-face.
Ties between India and
China, never close, have frayed
in recent years as Beijing has
grown in strength and confidence.
India has stayed away from
China’s ambitious Belt and
Road Initiative, an expansive
infrastructure plan that seeks
to tie dozens of countries to
its global ambitions. China’s
growing economic and diplomatic footprint in India’s
neighborhood and the Indian
Ocean have irked officials in
New Delhi.
—Grace Zhu in Beijing
contributed to this article.
CHINA
BANGLA.
M YA N M A R
(BURMA)
THE WALL STREET JOURNAL.
standoff on a remote Himalayan plateau, ending a stalemate
that had raised concerns about
a potential military conflict.
But statements on Monday
from both sides created confusion over terms of the detente.
India’s Foreign Ministry said
the two sides had agreed to the
“expeditious disengagement of
border personnel of India and
China at the face-off site.” Beijing said Indian troops had
withdrawn and, responding to
a question about Chinese troop
deployments, said it would
make “necessary adjustments.”
The dispute began in midJune after Indian soldiers
halted Chinese efforts to construct a road in an area
claimed by China and Bhutan,
a close Indian ally sandwiched
between the two Asian giants.
TSERING TOPGYAL/ASSOCIATED PRESS
By Niharika Mandhana
in New Delhi
and Eva Dou in Beijing
Exiled Tibetans demonstrated in New Delhi this month in support of India on the border issue.
India doesn’t claim the territory in question, known as the
Dolam Plateau, but said defending it was crucial to protecting its own security and
the interests of Bhutan. Bhutan had asked China to retreat
until the boundary dispute be-
tween them was settled.
Beijing had for weeks accused India of “illegal trespassing” and called on Indian
soldiers to withdraw.
Neither side would comment
on whether Beijing would abandon its road-building project as
part of Monday’s deal. China’s
Foreign Ministry said border
guards would continue to patrol the disputed area.
Monday’s announcement
came days before a summit of
the Brics countries, scheduled
to take place in the Chinese
city of Xiamen in early September. That meeting—between the leaders of Brazil,
Russia, India, China and South
Africa—was likely to be overshadowed by the border dispute between its two prominent members.
Indian Prime Minister Narendra Modi and Chinese President Xi Jinping will meet after
weeks of acrimony and charged
rhetoric. Chinese media has run
commentary reminding India of
a 1962 war between the two
countries that China won.
Officials and analysts around
the world have been watching
to see how the two countries
resolve the issue. China is also
embroiled in potentially destabilizing maritime disputes with
other Asian countries.
Jia Xiudong, a senior research fellow at the China Institute of International Studies, said the border standoff
By Francis X. Rocca
in Rome and Myo Myo
in Yangon
The Vatican said Monday
that the pope will visit Myanmar from Nov. 27 to Nov. 30,
then travel to neighboring
Bangladesh to Dec. 2.
The announcement came a
day after the pope, speaking
to pilgrims in St. Peter’s
Square, decried the “persecution” of “our brothers the Rohingya” in Myanmar.
The Myanmar government
has said that more than 100
people have been killed since
Friday in battles in the country’s western Rakhine state.
An intensified military campaign against militants there
has sent thousands of Rohingya fleeing to the border
with Bangladesh.
Pope Francis’ Sunday remarks, in which he called for
the Muslim ethnic group to be
given their “full rights,” were
his latest of several statements on behalf of the Rohingya. The pope has taken a
special interest in Myanmar,
naming the country’s first cardinal in 2015. His November
visit will be the first to the
country by a pope. The Vatican and Myanmar established
diplomatic relations this year.
“We welcome the pope’s trip
to Myanmar,’’ said Wanna
Shwe, chairman of the Myanmar Muslim Federation. “What
is happening to the Rohingya
community in Rakhine state
cannot be denied. We all know.”
The government doesn’t
consider the Rohingya to be
citizens and refers to them as
Bengalis, indicating origins in
what is now Bangladesh,
though many Rohingya have
lived in territory in Myanmar
for generations.
Myanmar’s leader, Aung San
Suu Kyi, has adopted a hard
line on the Rohingya. Her office
has called the military’s actions
“clearances,” accused the Rohingya of burning their own
homes, and said aid groups
were supporting terrorism.
Insurgency in northern Rakhine state has been increasing since October, when militants killed nine border guards
and the military launched
counterinsurgency operations
that U.N. human-rights investigators said were marked by
rape. The latest round of fighting started Aug. 25, when Rohingya militants launched coordinated gun and machete
attacks on police outposts in
northern Rakhine.
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the Muslim Rohingya. Myanmar has restricted access to
Rakhine state for aid groups
and journalists.
The Rohingya have long
faced severe discrimination and
were the targets of inter-communal violence in 2012 that
killed hundreds and drove
about 140,000 from their homes
to camps for the internally displaced, where most remain.
The predicament of religious and ethnic minorities is a
signature theme for Pope Francis, as is the plight of refugees.
During his stay in Bangladesh, a Muslim-majority coun-
try, the pope is likely to touch
on the country’s reception of
Rohingya refugees. He will also
draw attention to the situation
of Christians, who represent
less than 1% of the population
and a majority of whom belong
to tribal ethnic peoples, in a
country that is 99% Bengali.
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Last week, a commission
led by former U.N. SecretaryGeneral Kofi Annan urged Ms.
Suu Kyi’s government and the
powerful military to improve
economic development and social justice in Rakhine state to
resolve communal violence between majority Buddhists and
U.S. Presses Guatemala’s President
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MEXICO CITY—The U.S.
government called on Guatemalan President Jimmy Morales to rethink his attempt to
expel a United Nations-backed
anticorruption prosecutor who
is investigating the president
and other top politicians for
possible breaches of campaign
finance laws.
Nikki Haley, the U.S. ambassador to the U.N., said Washington expects the Guatemalan
government to allow the International Commission against
Impunity in Guatemala, or
Cicig, to “do its critical work
without interference.”
Ms. Haley praised Iván Velásquez, the Colombian prosecutor who leads the Cicig, as a
crucial “voice calling out corruption and upholding the rule
of law.”
U.S. Rep. Ed Royce (R., Calif.), chair of the House Foreign Affairs Committee, also
called for the Guatemalan
president to “change course”
and allow Mr. Velásquez to
continue with his work.
The U.S. Congress “will continue to stand with the Guatemalan people, and especially
those in poverty, who are hurt
most by corruption,” Mr.
Royce said Monday.
The comments come a day
after Mr. Morales declared Mr.
Velásquez persona non grata
and ordered him to leave the
country. Hours later, the nation’s constitutional court
FABRICIO ALONZO/REUTERS
Pope Francis will travel to
Myanmar in late November for
a visit likely to highlight
struggles of the country’s embattled Muslim minority.
TONY GENTILE/REUTERS
Pope’s Visit to Spotlight Myanmar’s Muslim Minority
Protesters against the president in Guatemala City on Sunday.
granted a temporary injunction, preventing the president
from kicking out the Cicig
chief. In coming days, the
court is expected to determine
whether the stay is permanent.
Meanwhile, hundreds of
people protested on Guatemala City streets, calling for
Mr. Morales to resign.
The country’s Supreme
Court is expected to rule this
week on a request from Guatemala’s attorney general and
Mr. Velásquez to strip the
president’s immunity from
prosecution, which could lead
Mr. Morales to be formally
charged with finance violations related to his 2015 election campaign.
Cicig was created a decade
ago by agreement between the
U.N. and Guatemalan government to aid the investigation
and prosecution of organized
crime and official corruption.
In a televised address Sunday, Mr. Morales accused the
Cicig commissioner of over-
stepping his authority. He assured the public that his argument is with Mr. Velásquez,
not the Cicig itself, whose
work he said he supports. The
current mandates of both
Cicig and Mr. Velásquez expire
in September 2019.
A government spokesman
said at a press conference
Monday that officials were analyzing their legal options in
both the constitutional and supreme courts and repeated Mr.
Morales’s respect for the rule
of law and the independence
of the courts.
As they await the courts’
decisions, political forces in
the Central American country
were aligning for and against
Mr. Morales, a television comedian with no political experience before taking office in
January 2016.
Mr. Velásquez has the support of a wide swath of Guatemalan society—from leading
business groups to humanrights activists and indigenous
Maya organizations.
“We elected a president and
now we’ve dedicated ourselves
to criticizing him without letting him govern,” Siglo 21, one
of Guatemala’s largest newspapers, said in an editorial.
Mr. Morales’s efforts to rid
himself of the U.N. envoy has
roiled the government, with
the president firing his foreign
minister for disagreeing with
the expulsion order and several cabinet ministers resigning in protest.
THE WALL STREET JOURNAL.
Tuesday, August 29, 2017 | A7
NY
WORLD NEWS
U.K., EU Resume
Brexit Discussion
Officers stood by the body of a man police shot dead after he slashed seven people in Surgut, in Siberia, on Aug. 19.
Russia Attacks Raise Alarm
Stabbings in Siberia
and Dagestan suggest
spread of impromptu
terrorist atrocities
BY NATHAN HODGE
MOSCOW—A knife attack
on police officers in the Russian republic of Dagestan left
one officer dead, following a
stabbing spree in Siberia this
month, adding to worries here
about the spread of improvised terrorist attacks like
those that have been claimed
by Islamic State in Europe.
On Monday, two unidentified attackers struck police
officers with knives at a filling station in the city of
Kaspiisk, the local branch of
the federal Investigative Committee said. One officer was
killed and the other was
wounded before a third shot
and killed the attackers.
Video footage from the
scene showed a black jihadist
banner said to have been
found on the attackers, and
Islamic State claimed respon-
sibility, according to SITE Intelligence Group, which monitors extremist activity.
The Investigative Committee, a federal agency charged
with probing high-profile
crimes, didn’t describe the incident as a terrorist attack,
and said a criminal investigation was under way.
The incident came days after a man roamed the streets
of the Siberian city of Surgut
with a knife, slashing seven
bystanders before police killed
him. That attack was also
claimed by Islamic State.
Russian authorities declined to label the Aug. 19 incident as terrorism, but said
terrorism wasn’t being ruled
out by investigators. Authorities initially described the attacker as mentally ill.
Following the attack, Islamic State released a video
describing the man as a holy
warrior and showing a masked
man identified by the nom de
guerre Masud of Surgut,
seated next to a hatchet and
an Islamic State flag, vowing to attack nonbelievers.
“Soon blood will flow like
the sea,” a voice chants in the
video.
While Islamic State has declared itself to be behind numerous attacks that investigators also attributed to the
group, Islamic State has a record of falsely claiming responsibility, and it remains
unclear if the group had any
operational link to the latest
incidents in Russia.
Russian President Vladimir Putin has responded
with force to some past terrorist attacks. He came to
power on a promise to wipe
out militants in the north
Caucasus region, and he
launched a military campaign
in Syria in 2015 that he described as an effort to defeat
Islamic State.
But Russian officials have
on occasion been cautious
about playing up terrorism
threats. When a passenger
plane flying to St. Petersburg
went down in Egypt’s Sinai
Peninsula in 2015, killing all
224 people on board, Russian
officials initially dismissed an
Islamic State claim and reports that a bomb brought
down the plane.
It took Moscow more than
two weeks to say they had evidence it was a terrorist attack.
The response by authorities
in playing down the possibility of terrorism in the Aug. 19
attack in Surgut indicated
worries about public perception, said Alexey Malashenko,
a Moscow-based researcher.
“If they admit it’s a terrorist act, then you have to ask
the question of what the authorities are doing” to combat
it, he said. “It’s convenient to
describe it as a criminal act.”
Mr. Malashenko said he believed the Surgut stabbing
spree was terrorism. “It’s a
repeat of what’s happened in
Finland and Spain,” he said,
referring to a knife attack in
the Finnish city of Turku that
is being investigated as terrorism, and vehicle attacks in
Barcelona and the Spanish
town of Cambrils.
Surgut, a city of 360,000,
has seen an influx of job-seeking migrants from Muslimmajority regions of Central
Asia and the north Caucasus.
BRUSSELS—British and European Union negotiators resumed Brexit talks Monday but
officials played down the prospect of breakthroughs on a
handful of nettlesome issues related to the U.K.’s departure
from the bloc.
Officials on both sides have
in recent days said discussions—set to run through
Thursday—will be technical,
aimed at clarifying their positions before more-critical talks
next month.
That round—the fourth since
negotiations began in June—is
expected to determine whether
the EU will agree to talk about
its post-Brexit relationship with
the U.K., a topic London wants
tackled as soon as possible but
the EU has said it won’t address
until other issues are resolved.
Speaking on his way into the
meeting, U.K. Brexit negotiator
David Davis said position papers published in recent weeks
covering the withdrawal and
the vision for a future partnership with the EU should drive
forward talks in all areas.
“We want to lock in the
points where we agree, unpick
the areas where we disagree
and make progress on a whole
range of issues.” He called for
“flexibility and imagination
from both sides” to advance.
Negotiators David Davis, left, and Michel Barnier in Brussels.
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Mr. Davis’s upbeat tone
wasn’t replicated by his EU
counterpart, Michel Barnier,
who said the U.K. still needs to
clarify its position on several
separation issues and “start negotiating seriously.”
“I am concerned. Time passes
quickly,” Mr. Barnier said. “The
sooner we remove the ambiguity, the sooner we’ll be able to
discuss the future relationship
and a transitional period.”
He repeated the EU’s stance
that talks won’t advance unless divorce issues are “addressed properly.”
Earlier this year, EU leaders restricted Mr. Barnier’s negotiating mandate to issues
surrounding Britain’s departure, such as the bill the U.K.
must settle upon leaving the
bloc and the rights of EU citizens living in Britain.
Only when EU leaders are
satisfied with progress in
those areas will the bloc start
talking about its future relationship with Britain in areas
such as trade, officials have
said. The EU and U.K. also
must negotiate terms of a potential transition period between when Britain officially
exits the bloc in March 2019
and a new relationship is established. Both sides say those
terms are too complex to negotiate and approve in the
coming 20 months or so.
DARIO PIGNATELLI/BLOOMBERG NEWS
IRINA YESMAN/TASS/ZUMA PRESS
BY VALENTINA POP
A8 | Tuesday, August 29, 2017
* ****
THE WALL STREET JOURNAL.
WORLD WATCH
JAMAL TARAQAI/EPA/SHUTTERSTOCK
Exports rose 8% from July
2016 to $32.16 billion on increased shipments of crude oil
and gains in exports of manufactured products, agricultural
goods and minerals. Imports
rose 6.6% to $33.69 billion.
Vehicles and auto parts led the
gain in manufacturing exports, up
13.2% to $9.51 billion. Exports of
other factory-made goods were
4.5% higher at $19.3 billion.
Petroleum exports were up
19.3% to $1.93 billion.
Petroleum imports rose 4.6%
to $3.13 billion. Mexico exports
crude oil but imports more than
half of its gasoline and natural
gas.
The July results brought the
accumulated trade deficit for the
first seven months of the year
to $4.43 billion, as a $9.4 billion
deficit in petroleum trade was
partially offset by a $4.97 billion
surplus in nonpetroleum goods.
—Anthony Harrup
INDIA
Guru Gets 10 Years
In Prison for Rapes
A judge on Monday sentenced
a popular Indian spiritual guru to
10 years in prison on charges of
raping two female followers.
The sentence was pronounced
amid intense security at a prison
in the northern town of Rohtak,
where the guru, who calls himself
Dr. Saint Gurmeet Singh Ram Rahim Insan, has been held since his
conviction Friday.
The guru denied raping the
two followers, in a case that
stemmed from charges filed in
2002. His conviction sparked violent protests by his followers
that left at least 38 people dead
and hundreds injured.
—Associated Press
A FEAST FOR SOME: Animal vendors awaited customers in Quetta, Pakistan, on Monday, ahead of the Eid al-Adha festival, which will begin later this week in Pakistan.
EUROPEAN UNION
Europe, Africa Plan
New Asylum Policies
The leaders of France, Germany, Italy and Spain agreed
Monday at a summit with African leaders on a new policy to
grant asylum to vulnerable migrants who apply for protection
while in Africa instead of their
destination countries.
French President Emmanuel
Macron called the Paris summit,
aimed at finding solutions to illegal migration, the most effective
and far-reaching migration meeting in months. Many specifics
remained unclear, and Mr. Macron didn’t say how much the
measures would cost.
The African leaders—the
prime minister of Libya’s U.N.backed government, Fayez Serraj; Chad President Idriss Deby
Itno and Niger President Mahamadou Issoufou—stressed that
fighting poverty must be a central part of any migration strategy.
The European leaders acknowledged the need for a process in Chad and Niger that
would lead to the resettlement
of “particularly vulnerable migrants” in Europe.
German Chancellor Angela
Merkel said European countries
must clearly define which asylum-seekers have legitimate humanitarian needs.
The chancellor said Europe
needs to rethink its asylum system, which requires migrants to
seek refugee status in the first
country they reach. That has
heavily burdened Greece and Italy, where waves of boats carrying smuggled migrants have arrived in recent years.
—Associated Press
MEXICO
Trade Deficit Shrank
Year-to-Year in July
Mexico ran a $1.52 billion
trade deficit in July, a shift from
the surplus in June but smaller
than the $1.83 billion deficit in
the year-ago period, as export
growth outpaced the increase in
imports, the National Statistics
Institute said.
KOREA
Continued from Page One
maximum altitude of 342 miles.
Mr. Suga said no damage has
been reported from the missile,
adding that Japan believes it
broke into three parts but was
still analyzing the matter.
While the missile was still
in the air, Japanese authorities
sent an alert to northern areas
near its path.
“A missile has apparently
been launched from North Korea. Please take refuge in a
sturdy building or underground,” the alert said. The
warning was lifted a few minutes later, after the missile
went down in the Pacific.
The North Korean missile
was the fifth to pass over Japanese territory and the first
since 2009 to overfly the main
islands of Japan. Pyongyang
fired missiles over the Ryukyu
Islands, the Japanese territories including Okinawa south
of the main islands, in 2012
and 2016.
The launch came three days
after North Korea attempted to
fire three missiles off its east
coast, at least one of which appeared to fail.
Last week, U.S. Secretary of
State Rex Tillerson praised
North Korea for exercising “restraint” in not having conducted any missile tests during
joint annual exercises between
the U.S. and South Korean militaries, which began on Aug. 21.
The exercises, which are
slated to end Thursday, are a
perennial irritant to North Korea, which has called them a
prelude to a possible attack on
the country.
The launch occurred as
Japan’s air force temporarily
deployed Patriot missile-defense batteries at a pair of U.S.
bases in Japan, in what a U.S.
military statement called an effort “to practice and refine their
ability to rapidly respond to
North Korean missile threats.”
South Korea’s National Security Council held an emergency meeting an hour after
the launch.
South Korean authorities’
assessment of the trajectory of
the North’s latest launch suggested that Pyongyang fired
the missile at a more conventional angle than its two intercontinental ballistic missile
test launches last month, which
traveled deep into space but
only a short lateral distance.
Japanese Defense Minister
Itsunori Onodera said initial
analysis suggests the missile
was an intermediate-range ballistic missile of the same type
that North Korea fired May 14.
Tuesday’s missile reached a
maximum altitude of 342
miles, far short of the 2,300
miles of the North’s ICBM test
launch on July 28, while traveling farther laterally.
Earlier this month, North
Korea said it was preparing for
a possible launch of multiple
missiles toward the U.S. Pacific
territory of Guam, a trajectory
that would overfly parts of
Japan. Days later, the North
said leader Kim Jong Un had
decided against the launch for
now but warned it would
watch the U.S.’s behavior.
On Tuesday, the Andersen
Air Force Base in Guam said
U.S. authorities there had detected the missile “in real
time” but determined it wasn’t
a threat to Guam.
“How the U.S. responds to
this provocation will be closely
watched by both Japan and
South Korea, and could be a
critical moment in alliance relations,” said Jenny Town, assistant director for the U.S.-Korea Institute at Johns Hopkins
University’s School of Advanced International Studies.
ISSEI KATO/REUTERS
FROM PAGE ONE
Japanese soldiers took part in a drill with a Patriot missile unit on Tuesday morning near Tokyo.
Before the missile launch,
South Korean President Moon
Jae-in on Monday ordered
changes to the country’s military structure so that Seoul
could “immediately switch to
an offensive operation” in the
event that North Korea
“crosses the line” or launches
an attack on Seoul, the South
Korean capital.
In a military drill Tuesday,
South Korea dropped eight
bombs on an artillery range after Mr. Moon ordered a “show
of force.” It was the latest in a
series of steps he has taken to
boost South Korea’s military
posture against a threat from
the North, even as he continues to extend an olive branch
to Pyongyang.
U.S. national security adviser H.R. McMaster discussed
the use of “strategic assets”
with Chung Eui-yong, his
South Korean counterpart, according to a statement from
the presidential Blue House in
Seoul.
While the statement didn’t
elaborate, the phrase “strategic assets” typically refers to
nuclear weapons, stealth
bombers or aircraft carriers—
all of which tend to trigger
complaints from Pyongyang.
—Nancy Youssef
contributed to this article.
Mr. Bevin’s office declined to
respond to questions about its
vetting procedures or the process generally. His office denied
a request by the Journal for rejected applications, citing exemptions in Kentucky’s open-records law. Under Mr. Bevin’s
process, those who nominate
must be colonels active with the
Honorable Order. Applications
include a spot for listing charity or community-service work.
The path to colonelcy varies
widely. “Happy Days” star
Henry Winkler was made a colonel during an appearance at a
Bowling Green, Ky., book fair in
2013. He said his framed certificate is hanging at his Los Angeles home. Mr. Bevin awarded
Vice President Mike Pence a
commission when Mr. Pence visited Louisville earlier this year.
A spokesman for Mr. Pence declined to comment.
L.D. Gorman, the Kentucky
coal magnate who nominated
Mr. Trump, declined to say
much about how he came to
nominate the president’s son.
“I’m a friend of his,” said Mr.
Gorman, whose brother was
mayor of Hazard, Ky., and bestowed the honor of “Duke of
Hazard.”
A representative of Mr.
Trump declined to comment.
For some colonels, the commission comes as a surprise. Retired
electrician
Thomas
Nitschke, 74 years old, still has
no idea who nominated him for
his work helping low-income
fellow residents of Dry Ridge,
Ky. “One day I went to the mail,
and there it was,” said Mr.
Nitschke, who has stashed his
certificate in a closet until he
remodels his basement where
he plans to display it.
Emanuele Filiberto, who
claims the title of crown prince
of Italy and whose grandfather
was king before the country
abolished the monarchy in 1946,
didn’t know he was a colonel
until he was contacted by the
Journal. “I never even went to
Kentucky,” Mr. Filiberto said. “I
only ate Kentucky Fried
Chicken, which I like.”
Turns out, an associate asked
a Louisville doctor to commission Mr. Filiberto, regarded by
many as heir to Italy’s nonexistent throne. While he said he
was honored that his charity
work was recognized with a
colonelcy, Mr. Filiberto observed: “It’s easier to become a
colonel than for the monarchy
to come back in Italy.”
—Andrew Tangel has been a
Kentucky colonel since 2014.
cheaper than German marks.”
Colonels multiplied in the
early 1930s when Gov. Ruby Laffoon saw commissions as a way
to promote Kentucky. Hollywood
celebrities such as Shirley Temple later joined their ranks.
At a 1934 banquet, where
there was discussion of requirements, Mr. Laffoon claimed he
would appoint a million colonels
in the next year “to obtain their
votes when Col. Franklin D. Roosevelt ‘becomes tired of being
president,’” according to a published account.
Mr. Sanders, the friedchicken purveyor, later became
an international symbol for KFC
and the Bluegrass State. “He
certainly broadened the recognition of being a Kentucky colonel—no question,” said John Y.
Brown Jr., who bought KFC
from “The Colonel” and later
became Kentucky governor.
Vetting of prospective Kentucky colonels has at times been
Whoopi Goldberg, Shirley Temple and Emanuele Filiberto are
among those who have been given the title of Kentucky colonel.
less than extreme. In 1980, during Mr. Brown’s administration,
a newspaper reporter proved
the point by winning a commission for a dog named Waldo.
The application took some liberties, inflating the hound’s age in
dog years and listing his occupation as “security guard.”
Mr. Brown couldn’t recall
whether Waldo’s commission
was revoked. “Those kind of
things do slip through,” he said.
Messrs. Brown and Beshear
say they often commissioned
colonels when trying to lure
businesses to the state. “It’s really been a good marketing
tool,” Mr. Brown said.
The Honorable Order of Kentucky Colonels doles out grants
across the state. Last year, it
spent about $1.5 million on projects such as new air conditioners at a halfway house, food for
needy schoolchildren and an elevator at a school in Appalachia,
according to Ms. Crose. She said
about 25% of the approximately
7,000 colonels named last year
became active members of the
Honorable Order by donating.
ZUMA PRESS
20TH CENTURY FOX/ENTERTAINMENT PICTURES/ZUMA PRESS
Continued from Page One
“There’s not a lot of official
requirements,” said former Kentucky Gov. Steve Beshear, Mr.
Bevin’s predecessor. “It’s just
one of those longstanding traditions that people in Kentucky
think is very special and also
fun.”
A colonelcy carries some
mystique. According to the Kentucky Encyclopedia: “The Kentucky colonel has come to represent the daring, glamour,
dignity, wit, charm, and attraction of outstanding men who
have claimed the title—the stereotype of a southern gentleman.” Mr. Beshear, who estimates he commissioned more
than 100,000 colonels during his
two terms as governor, which
ended in 2015, says they outrank honorary titles granted by
other states.
Application criteria have long
been vague. There was talk in
1934 of granting colonelcy only
to those who had witnessed a
horse race, according to a news
account at the time of a meeting
attended by Col. James A. Farley, then the U.S. postmaster
general.
There have been concerns
about colonel inflation. In 1921,
an item in the Louisville, Ky.,
Courier-Journal
complained
about a Secret Service agent
winning a commission after
playing golf with the governor.
The worry was that “Kentucky
Colonelships will soon be
PASCAL LE SEGRETAIN/GETTY IMAGES
TITLE
THE WALL STREET JOURNAL.
Tuesday, August 29, 2017 | A8A
NY
* *
GREATER NEW YORK
Sen. Menendez says
case should be halted
on days he is needed
to vote on crucial bills
BY CORINNE RAMEY
Lawyers for Sen. Bob Menendez argued his coming
public-corruption trial should
be scheduled around key U.S.
Senate votes, saying the New
Jersey lawmaker has a constitutional obligation to his constituents.
His lawyers said the votes
of Mr. Menendez, a Democrat,
are critical in a closely divided
Senate. The Senate is set to
reconvene on Sept. 5, a day
before Mr. Menendez’s trial is
scheduled to begin in U.S. District Court in Newark, N.J.
Currently, the chamber is
made up of 52 Republicans, 46
Democrats and two Independents who caucus with the
Democrats.
“As the recent vote on
whether to repeal the Affordable Care Act demonstrated,
the Senate is divided by razorthin margins on consequential
legislation, making Senator
Menendez’s absence from any
particular vote potentially determinative,” his lawyers
wrote in a filing late last week.
The lawyers said important
future votes include raising
the debt ceiling and reauthorizing the National Flood Insurance Program. Other foreign policy matters that may
arise include sanctions on
Iran, issues around North Korea and economic actions concerning
Venezuela,
they
added.
Mr. Menendez faces charges
JULIO CORTEZ/ASSOCIATED PRESS
Lawmaker Wants His Trial Dates Tailored
Sen. Bob Menendez asked for trial holidays to vote in Congress.
including bribery and conspiracy. Federal prosecutors allege
he accepted gifts and campaign contributions in exchange for using his government position to advocate for
Florida ophthalmologist Salomon Melgen in matters includ-
ing a Medicare billing dispute
worth millions of dollars.
“Those indictments allege a
seven-year bribery conspiracy
in which he traded the power
of his public office for a lavish
lifestyle that included private
jet rides and vacations in Paris
and the Caribbean,” federal
prosecutors wrote in court
documents filed Friday.
Mr. Menendez, who pleaded
not guilty, has denied wrongdoing. Mr. Melgen, who is also
being tried, has pleaded not
guilty as well.
Judge William Walls previously has ruled against delaying the trial, saying a defendant has a right not to attend.
In filings late last week, lawyers for Mr. Menendez asked
for occasional days off so he
could participate in critical
votes. They said elected officials both have a constitutional right to be at their trials and a constitutional
obligation to serve people who
elect them.
Federal prosecutors argued
politics shouldn’t disrupt the
trial schedule and that the
senator shouldn’t receive spe-
cial treatment because of his
official position.
“Many defendants try to
evade their criminal trials—
but only a United States Senator can try to hide behind the
very office he corrupted to
avoid accountability to the
public for his actions,” prosecutors wrote.
The judge likely won’t be
receptive to Mr. Menendez’s
argument, said Michael Weinstein, a defense attorney who
isn’t involved with the case.
“What Menendez is really
asking the judge to do is to
prioritize a politician’s job as
more important than any
other,” he said. He noted Mr.
Menendez had previously
asked for other delays in
scheduling the trial.
“The judge is looking at this
within the larger history of
the matter,” he added.
BY CHARLES PASSY
SYRACUSE, N. Y.—For most
visitors to this year’s New
York State Fair, the attractions
are what they have always
been: Carnival rides, livestock
exhibitions and an array of
foods that aren’t likely to be
on any nutritionist’s suggested list of dining options.
But for Gov. Andrew
Cuomo, the 176-year-old
event, which kicked off on
Wednesday and runs through
Labor Day, the fair’s appeal
represents something more
significant.
The governor is spearheading an ambitious and sometimes controversial $120 million plan to revitalize the 13day fair and the 375-acre
upstate property it calls home.
The goal is to see the fairgrounds become a year-round
hub of activity that could
pump millions of dollars into
Syracuse and the broader Onondaga County area and boost
the troubled regional economy.
If You Go
The New York State Fair,
adjacent to Route 690 just west
of Syracuse, runs through Labor
Day.
Adult admission is $10,
though discounts apply on
certain days. Children 12 and
under get in free daily.
Gates open daily at 7 a.m.
and close at 10 p.m.; 9 p.m. on
Labor Day. Exhibit buildings
open starting at 10 a.m.
Source: nysfair.ny.gov
—Charles Passy
“To me, the fair is really a
metaphor for upstate New
York,” Gov. Cuomo said during
his remarks at the event’s
opening day this year. The
governor also took a ceremonial spin to help unveil a new
skyline chairlift ride that
dominates the midway.
Fairgoers have seen improvements resulting from
the first $50 million of the
$120 million, including a
stately new entrance, an expanded midway and the teardown of an aging grandstand.
Other upgrades, such as
new drainage and electrical
systems, are harder to spot,
but have helped the fair run
far more efficiently, say officials with the state’s Department of Agriculture and Markets, which oversees the fair.
There is more to come with
the remaining $70 million the
state has pledged.
A new 133,000-square-foot
exposition center, which state
officials boast would be the
biggest facility of its kind between Cleveland and Boston
and north of New York City, is
slated to open next year in the
southwest corner of the fairgrounds.
The aim is to see the fair
attract everything from car
shows to equestrian competitions throughout the year.
The fair already hosts a number of such events, but the
new center would be key to
growth, officials say.
Also on tap as part of the
next-phase of the $70 million
expenditure: $20 million in
area roadway and ramp improvements.
In all, the $120 million
commitment is “a significant
investment for the state to
HEATHER AINSWORTH FOR THE WALL STREET JOURNAL
State Injecting
Millions Into Its
Fair, Irking Some
New York State Fair visitors recently rode the Broadway Skyliner, a new chairlift-type ride that dominates the midway.
make,” said Marla J. Calico,
president and CEO of the International Association of
Fairs and Expositions, a trade
group for the industry.
Still, the governor’s plan
for the fair has drawn its
share of criticism.
Some lawmakers and other
prominent individuals in the
Syracuse area have said the
$120 million could be spent
on more pressing issues, such
as infrastructure needs that
go beyond the fair.
Critics have focused on a
plan to build a $15 million
gondola
system—separate
from the skyline ride—that
would connect the fair to a
nearby amphitheater that
opened in 2015.
Onondaga County Republican Committee Chairman Tom
Dadey called it “the gondola
to nowhere” and said such
projects are ill-advised given
Funding Boost Pays
Off; Attendance Up
The infusion of state funds
into the New York State Fair,
which operates on a roughly
$15 million annual budget, is
starting to pay off, state officials said.
They note that the event
set a new attendance record
last year of 1.1 million and saw
record midway revenue of $3
million (The state shares that
revenue with an outside rideand-games operator.)
Overall, the fair breaks even
financially most years, said
Troy Waffner, acting director of
the fair.
So far, attendance at this
year’s fair that ends on Labor
Day, is pacing ahead of 2016,
with the event setting an alltime single-day record of
123,206 people on Sunday.
And fairgoers seemed to be
enjoying themselves during the
first few days, whether they
were waiting for a calf’s arrival
at the Dairy Cow Birthing Center or grooving to the sunny
sounds of the Beach Boys at
a Friday night concert.
The fair also is trying to expand its programming to reflect
contemporary tastes and the diverse population throughout the
state. Already this year, the
event has hosted a Pride Day in
honor of the state’s LGBT community and a drone film festival.
—Charles Passy
the area’s other priorities.
“Our roads are failing, our
water and sewer lines are failing,” he said.
State officials now say the
gondola is no longer part of
the $120 million plan, but
Troy Waffner, acting fair director, says the project hasn’t
been ruled out for the future.
Many fairgoers say they
are happy to see the event receive significant support from
the state, noting that the improvements have made the
event much easier to navigate.
Pat Brown, a longtime fair-
goer and retiree who lives
part-time in Syracuse, says
she’s looking forward to what
is to come at the event in the
years ahead.
“If they can make it bigger
and better, it’s only going to
be a plus for Syracuse,” she
said.
BY JOSEPH DE AVILA
The number of drug-related overdose deaths in Connecticut is forecast to exceed
1,000 in 2017, the highest
number since the opioid epidemic began and the latest
indication that the crisis
hasn’t abated, according to
data released Monday.
There were 539 deaths related to drug-abuse through
June 30, the state’s medical
examiner said. If that continues at the same rate for the
entire year, the medical examiner predicted there would
be 1,078 overdose deaths in
Connecticut, up 18% over
2016 and more than three
times the amount from 2012.
“The opioid epidemic is
ravaging our state, and it’s
not slowing down,” said Sen.
Chris Murphy (D., Conn.), in
response to the new figures.
Hartford, the state capital,
had 40 drug-related overdose
deaths during the first half of
this year, the most in the
state. Waterbury was second,
with 32, followed by Bridgeport with 25, the medical examiner’s office said.
The vast majority of the
deaths were due to opioid
abuse, the office said. Fentanyl replaced heroin as the
most common opioid found in
overdose deaths in the state,
the medical examiner said.
The state projects there
will be 644 deaths involving
fentanyl by the end of the
year compared with 514 for
heroin. In 2016, there were
483 fentanyl-related overdose
deaths and 508 for heroin,
officials said.
Gov. Dannel Malloy, a Democrat, said Connecticut needs
help from the federal government to prevent fentanyl
from coming into the state
from other countries such as
China.
JOHN MOORE/GETTY IMAGES
Connecticut Fatal Drug Overdoses on Track to Increase 18%
A drug user prepares to inject heroin. The opioid crisis is fueling a rise in overdose deaths in Connecticut.
“Opioid addiction and prescription drug misuse is a
disease that is impacting
nearly every community and
people of every background,”
Mr. Malloy, said. “This is a
complex crisis that does not
have one root cause, nor does
it have simple solution.”
The governor signed legis-
lation in June to address the
opioid epidemic that includes
measures such as increasing
the data shared among state
agencies regarding opioid
abuse and opioid overdose
deaths, requiring certain
scheduled prescriptions be
electronically filled, and reducing the maximum opioid
prescription for minors from
seven to five days.
Overdose deaths related to
the prescription opioid Oxycodone have declined in Connecticut. The state projects
overdose deaths attributed to
Oxycodone would fall from
110 in 2016 to 82 in 2017, a
25% decrease.
A8B | Tuesday, August 29, 2017
NY
THE WALL STREET JOURNAL.
* ***
GREATER NEW YORK
What is
Afropunk?
PHOTOGRAPHS BY
SYLVIA SANGSUK KANG
We asked concert-goers at the annual Brooklyn event
what Afropunk means to them.
Thousands turned out for the
12th installment of Afropunk Fest,
a celebration of African-American
music and culture, in Brooklyn’s
Commodore Barry Park over the
weekend.
The two-day festival, in its second year at the larger venue after
it outgrew nearby Fort Greene
Park, started as a way to show
that punk and hardcore rock were
not exclusively played by Caucasian
musicians.
This year’s version included performances by Alternative R&B
singer Solange, blues and soul guitarist Gary Clark Jr. and R&B teen
singer Willow Smith.
“I kind of booked it like a mix
tape,” founder Matthew Morgan
told the Associated Press. “I want
people to be open and free enough
to experiment within the space.”
“It’s great experience to see people are just like me,
outside of the norm, I feel like I’m in my own type of
family here. It’s kind of like a reunion.”
Jayee Adams, 20, Queens
“You can be whoever
you want, not being
judged, just being free
to be yourself. ”
Angelica Thomas, 29, California (
“The first time I was so amazed and overwhelmed by
the environment and all the people and so I had to
come back for a second time. It’s a really rich place
to be. Afropunk means being unapologetic.”
“Afropunk means being
proud of who I am.
Being proud of every
piece of me.”
+ JaQuam Mitchell, 22,
St. Martinville, La.
Erin Mitchell, 28, Birmingham, Ala.
Shows Poised to Close Get a Boost
BY CHARLES PASSY
BY KATE KING
AND MARA GAY
AGATON STROM FOR THE WALL STREET JOURNAL
‘Bandstand,’ set to close Sept. 17, is seeing box-office gains, while struggling to find a sizable audience.
Malloy, its creator, is playing
the lead male role of Pierre in
the final weeks.
Still, shows face a particular challenge this time of year.
The end of summer “is histori-
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cally one of the worst periods
for Broadway grosses,” said
Christopher McKittrick, an editor with DailyActor.com, a
website that covers theater
news.
Overall, Broadway is enjoying a good season so far.
Grosses through last week totaled $444 million, an increase
of nearly 22% over last season
at this same point.
ban search-and-rescue teams
specialized in water, confined
spaces and building collapse
situations. Both units are part
of a national network of rapidresponse teams that can be
mobilized by the Federal
Emergency
Management
Agency, known as FEMA.
More than 1,100 personnel
specialized in urban search
and rescue from 19 states, including Texas, have been deployed in response to Tropical
Storm Harvey, according to a
FEMA spokeswoman.
New Jersey sent 16 members from its urban searchand-rescue task force to Texas,
as well as three state police
personnel, six boats and five
trucks, according to Laura
Connolly, spokeswoman for
the New Jersey State Police’s
emergency-management unit.
“Flooding is one of the biggest
threats to the state of New
Jersey and they have a lot of
experience,” she said.
New York Gov. Andrew
Cuomo has deployed 104 Air
Guard personnel to Texas, as
well as rescue helicopters,
planes and boats, his office
said. Connecticut is sending
eight airmen and a cargo
plane, Gov. Dannel Malloy said
in a statement on Monday.
New York, New Jersey and
Connecticut are sending emergency responders to Texas to
assist with rescue and recovery efforts amid widespread
flooding caused by Tropical
Storm Harvey.
New York and New Jersey
officials said they were grateful for the assistance they received following superstorm
Sandy in 2012 as well as other
disasters. They stood ready to
send more resources to Texas
if necessary.
The storm has left at least
eight people dead and dumped
more than 30 inches of rain on
parts of the Houston area. An
additional 20 inches may fall
later this week.
New York City officials said
they sent about 120 first responders to assist in Texas
rescue efforts.
“We’ve been through something like this and we understood that lots of people came
from all over to help,” said New
York City Mayor Bill de Blasio
at a news conference Monday.
“We believe in helping our fellow Americans.”
New York City and New Jersey each have dispatched ur-
GREATER NEW YORK WATCH
BROOKLYN
Police Say Attack
May Be Hate Crime
The New York Police Department searched Monday for a
man who beat a social-services
worker in what is being investigated as a possible antigay hate
crime.
The worker was “badly
beaten” in Brooklyn’s BedfordStuyvesant neighborhood Saturday, according to the mayor’s
spokesman Eric Phillips.
The suspect, who was captured on video, approached the
27-year-old social worker on the
corner of Fulton and Franklin Avenue, called him an antigay derogatory term and punched him
in the face, police said.
The victim suffered a broken
jaw, police said. The NYPD’s
Hate Crimes Task Force is investigating the incident.
Mayor Bill de Blasio said
Monday that he had visited the
victim, who will need surgery.
“He was in good spirits,” the
mayor said, adding he was “very
troubled by what he went
through.”
—Zolan Kanno-Youngs
NEW YORK CITY
New Law Increases
Price of Cigarettes
The price of a pack of cigarettes in New York City is going
up—to at least $13—and the
number of places you can buy
them is going down under legis-
MARK LENNIHAN/ASSOCIATED PRESS
The curtain may be coming
down on a number of Broadway shows this summer, but
that hasn’t stopped them from
courting a crowd in the meantime.
Take “Natasha, Pierre & the
Great Comet of 1812,” which is
set to close Sept. 3. The musical, an interactive romp based
on Leo Tolstoy’s “War and
Peace,” saw its ticket sales
rise by about $85,000 to hit
nearly $1 million this past
week, according to the Broadway League, a trade group.
Two other musicals scheduled to close Sept. 17, “Bandstand” and “Groundhog Day,”
also saw gains, though the
shows still struggled to find a
sizable audience.
“Groundhog Day,” for example,” took in $650,416, an increase of roughly $10,000 over
the prior week. But that figure
represented about 50% of the
show’s potential gross.
It is fairly common for
shows to see a bump in sales at
the end of their runs. Fans often rush to see a favorite once
again, while those who missed
the show earlier might try to
catch it while they can.
And in the case of the
“Great Comet,” the show may
be benefiting because Dave
Metro Area Is Sending
Responders to Texas
A pack of cigarettes will cost a minimum of $13 under a new law.
lation signed Monday by Mayor
Bill de Blasio.
The new minimum price law,
which takes effect on June 1,
will make New York the most
expensive place in the U.S. to
buy cigarettes, Health Department officials said.
Currently, the minimum allowed price per pack is $10.50.
The price increase is one of
seven bills the Democratic
mayor signed Monday aimed at
pressuring the city’s 900,000 estimated smokers to quit.
Another new rule will reduce
by half the number of retailers
licensed to sell tobacco products.
About 8,300 businesses now
have a license. The numbers will
be reduced through attrition.
Other laws will ban the sale
of all tobacco products in pharmacies and require licensing of
e-cigarette retailers.
—Associated Press
WESTERN NEW YORK
Congressman Faces
House Ethics Probe
The U.S. House of Representatives’ Ethics Committee says it
is investigating Republican Rep.
Chris Collins of New York.
In January, the advocacy
group Public Citizen filed a request for an investigation of
possible insider trading. The
House panel said Monday it
needs more time to review a report submitted last month by
the Independent Office of Congressional Ethics.
The advocacy group said Mr.
Collins sits on the board of Innate Immuno, a company that is
experimenting with a drug to
treat multiple sclerosis. The
group said Mr. Collins purchased
millions of shares of the company while also sponsoring legis-
lation that could benefit the
company.
A spokeswoman for Mr. Collins, who represents New York’s
27th congressional district, says
the congressman has followed
all ethical and legal guidelines in
his personal investments and he
looks forward to the review.
—Associated Press
NEW JERSEY
Woman Is Charged
in Fatal Car Crash
Authorities say a woman was
driving drunk when her car overturned on a New Jersey highway
and ended up in a mall parking
lot, killing two other women.
Bergen County prosecutors
say Jasmine Cruz faces two
counts of death by auto.
The 23-year-old Garfield resident was seriously injured in
Sunday’s crash on eastbound
Route 4 in Paramus.
It wasn’t known on Monday
if Ms. Cruz has retained an attorney.
Authorities say all four people
in the vehicle were ejected from
the car but were found nearby.
Mariah Gomez, 29 years old,
and 19-year-old Jenna DiSclafani,
both of Garfield, were killed.
Another passenger, 23-yearold Kevin Coiro, suffered injuries
that aren’t considered lifethreatening.
Authorities say the car ended
up in the Bergen Town Centre
parking lot. The mall wasn’t
open at the time of the crash.
—Associated Press
THE WALL STREET JOURNAL.
LIFE&ARTS
Tuesday, August 29, 2017 | A9
tive. Studies have shown that people can watch a stranger for five
minutes on video, without ever
meeting the person, and evaluate
his or her personality as accurately as a close friend or family
member can.
You will also want to pick a person who sees you in the right context. For example, if you want to
know how members of the opposite sex see you, you need to ask
one.
Be specific about what you
want to know
“Don’t write them a blank feedback check,” Dr. Eurich says.
“You’re opening the door to things
you might not want to hear or
might not be ready to work on.”
Do some reflecting first, she
suggests. Think about how you
want to be viewed by others.
Here’s an example: If you want
to be seen as someone who is
funny and charming, ask someone
who was at that party with you
last night how you really came
across. What you did that helped
you? What got in your way?
JON KRAUSE
Pay more attention to people’s
reactions
BONDS: ON RELATIONSHIPS | By Elizabeth Bernstein
Are You Aware of
How Others See You?
We don’t always read how the outside world reads us; how to improve ‘external self-awareness’
MOST OF US are not as selfaware as we think we are.
Research shows that people
who have a high level of selfawareness—who see themselves,
how they fit into the world and
how others see them clearly—
make smarter decisions, raise
more mature children and are
more successful in school and
work. They’re less likely to lie,
cheat and steal. And they have
healthier relationships.
Tasha Eurich, an organizational
psychologist from Denver, spent
three years conducting a study on
self-awareness and has a new book
on it titled “Insight.” When it
comes to self-knowledge, she says
there are three types of people:
those who have it, those who underestimate how much they have
(she calls them “underraters”) and
those who overestimate how much
they have (“overraters”). Underraters beat themselves up unneces-
sarily. Overraters believe they do
everything well. She found no gender differences in her research.
Internal self-awareness is introspective—what happens when we
know ourselves well. External selfawareness is what happens when
we correctly understand how others see us. You can excel at one
and not the other.
External self-awareness may be
trickier to achieve, Dr. Eurich says.
We can go to therapy or keep a
journal to try to learn about ourselves, but we’re still looking at
the world through our own lens.
Other people can give us a much
more objective view of ourselves.
How can we truly know how others see us? Those who know us
best often won’t tell us the truth,
especially if it’s critical. Social media, with all its “likes” and
“friends” can give us a false sense
of self, too. And technology strips
away a lot of feedback, such as
body language and tone of voice,
that helps us understand how we
come across.
Dr. Eurich says you can boost
your external self-awareness. For
her study, she and her colleagues
Family members may
not give the most honest
feedback. Look for
someone more objective.
reviewed more than 800 studies
on self-awareness. They also surveyed approximately 5,000 people
around the world, and conducted
in-depth interviews with 50 people who had significantly improved their own self-awareness
over time.
Dr. Eurich identified seven cate-
gories of self-knowledge—areas
that we need to cultivate in ourselves and seek feedback on from
others if we want to be more selfaware. These are our values, passions, aspirations, fit (what type
of environment is going to make
us happy and engaged), personality, strengths and weaknesses, and
the impact we have on people
around us.
She has advice for how to more
clearly see how others see us:
Pick the right person to ask
for feedback
It might not be someone really
close to you. A spouse, best
friend or family member has a
motive to try to please you. And
those relationships can be emotionally complex, so there is a
greater risk of conflict if you
don’t like the feedback.
Look for someone who is more
removed and might be more objec-
We’re often lost in our own heads,
making up stories for ourselves
about what other people think that
are based more on our insecurities
than their opinions.
Dr. Eurich says to think about
what your goal is and compare
that with the outcome. You wanted
to be funny at the party. Did people laugh at the long joke where
your mother-in-law was the
punchline? Or did they sit silently,
looking around at the others?
Watch whether people treat
you differently
It’s not enough to observe their
body language—some people are
animated or subdued no matter
what. Pay attention to how they
respond to others. Is that the same
way they react to you? Are they
listening to you more or less?
Laughing more or less?
It’s also important to observe
whether a person’s response has
changed over time, especially if
you know that person well. Personality is fairly consistent, so any
changes may be about you.
Perform a friend audit
Dr. Eurich suggests you ask yourself: “Who are the people who
would bail me out of jail at 2 a.m.?”
Family members don’t count. If you
don’t have at least one or two people on that list, think about what
you could do differently so that you
have people in your life who would
do anything for you.
Create an imaginary therapist
This is like an imaginary friend,
but more honest. Imagine your
therapist observing your behavior
and then gently telling you what
he or she sees.
“You need to change your perspective,” Dr. Eurich says. “And
this helps you be objective and not
wrapped up in your own defenses.”
Write to Elizabeth Bernstein at
elizabeth.bernstein@wsj.com or
follow her on Facebook, Twitter or
Instagram at EBernsteinWSJ.
YOUR HEALTH | By Sumathi Reddy
Bronx, N.Y.
DAVID VICTOR IS strolling up
and down a walkway at a steady
pace, reciting alternate letters of
the alphabet aloud.
The 20-foot walkway the 73year-old is on is embedded with
pressure sensors that track every
step he takes: his velocity, his cadence, how long his foot remains
in the air. The measures pop up
on a computer screen
here in a laboratory at
Albert Einstein College of Medicine.
Later, Mr. Victor
will repeat the exercises with a device on his head
that measures his
brain function in
real time.
Gait, or how people walk, is increasingly viewed as an important indicator of health for
elderly people. Changes in gait
have been associated with an increased risk for falling and other
health outcomes. And researchers
have discovered that slowing down
or walking more erratically can
predict later cognitive impairments, even dementia and Alzheimer’s disease, more than a decade
before symptoms appear.
Roee Holtzer, a professor of neurology at Albert Einstein and Yeshiva University and Joe Verghese,
director of the Montefiore Einstein
Center for the Aging Brain, are collaborating on several research projects to shed light on the relationship between gait and cognition
and how to improve them.
“We are treating walking
abilities as an extension of
brain function,” Dr.
Verghese says.
The researchers
began annually
monitoring 600
elderly area residents, including
Mr. Victor, starting in 2011. Along
with the analysis of
their gaits, the seniors receive grip and
balance tests, a battery of
neuropsych tests and a routine
health screening.
The researchers also measure
changes in the oxygenation levels
of the brain, using a functional
near-infrared spectroscopy (fNIRS)
device that looks like a headband.
Participants wear one on their
forehead. Doctors connect the dePlease see HEALTH page A10
FROM LEFT: DEIRDRE BRANLEY/ALBERT EINSTEIN COLLEGE OF MEDICINE; ADRIENNE GRUNWALD FOR THE WALL STREET JOURNAL
WHAT YOUR GAIT CAN TELL DOCTORS
David Victor wears a device that measures his brain activity and levels of oxygenation as his walking and walkingwhile-talking speed are evaluated. Dr. Roee Holtzer, inset, a neurology professor, is helping to lead the study.
THE WALL STREET JOURNAL.
A10 | Tuesday, August 29, 2017
LIFE & ARTS
MUSIC REVIEW | By Jim Fusilli
FROM TOP: ANDREAS NEUMANN; PAUL R. GIUNTA/WIREIMAGE/GETTY IMAGES
QUEENS OF THE Stone Age and
LCD Soundsystem, reliable indierock veterans, return with new albums, both of which have a foot
firmly in a musical past that precedes their careers. The recordings
satisfy, each in their own way,
even if they fail to challenge.
While “Villains” (Matador) by
Josh Homme’s Queens of the Stone
Age and “American Dream” (DFA/
Columbia) by James Murphy’s LCD
Soundsystem come to rock from
different paths—the former from
metal and hard rock, the latter
from dance music and avantfunk—they share common spaces.
Crunchy sounds populate the midrange on both recordings, challenging aggressive percussion for
dominance. With soul-and-funk
producer Mark Ronson
on board, “Villains”
tweaks QOTSA’s usually heavy approach
and on a few tracks
taps into some rhythmic techniques not unlike those on which
Mr. Murphy builds his
music. On “American
Dream,” Mr. Murphy
now and then favors a
metallic-like roar tearing through the synthrich environment. His
band can rock when it
needs to.
And there is the
specter of David Bowie, a clear and
understandable influence on both
albums. The groups were more
than Bowie fans. Mr. Murphy, who
revealed his fondness for Bowie’s
music on prior albums, played a
bit of percussion on Bowie’s
“Blackstar,” which was released
two days prior to his death last
January. Mr. Homme produced
and, along with QOTSA’s multi-instrumentalist Dean Fertita, performed on Iggy Pop’s “Post Pop
Depression” (2016); some of that
album’s compositions were influenced by Bowie and Iggy Pop’s
mutual creative period in late
1970s Berlin.
As if in homage to Bowie, there
are sonic references too familiar to
be coincidental: Queens of the
Stone Age echoes Bowie’s “Ashes
to Ashes” on “Hideaway” and his
“Let’s Dance” on “Domesticated
Animals.” “Villains of Circumstance” all but quotes the bass line
in Lou Reed’s “Walk on the Wild
Side,” a recording Bowie co-produced. LCD Soundsystem’s exceptional guitarist Al Doyle lets loose
with free, squealing solos amid the
tight funk-rock of “Change Yr
Mind” that recall the work of
Bowie colleagues Reeves Gabrels
and Adrian Belew. Some of Mr.
Murphy’s synthetic environments
are close kin to what Bowie cre-
d
t
Edmonton
70s
ated for his landmark “Low,” released 40 years ago. There’s no
great sin here, by the way. The
code in rock and pop is when you
borrow, borrow from the best.
Out now, QOTSA’s “Villains” is a
terrific hard-rock album, swaggering and entertaining. The quintet
hugs its core strengths: big guitar
riffs and thunderous drum patterns that propel hooky, wellcrafted rock songs sung with wit
by Mr. Homme. In “Hideaway” and
“The Evil Has Landed” drummer
Jon Theodore adds fat, syncopated
patterns worthy of Led Zeppelin’s
John Bonham under the beefy guitars played by Mr. Homme and
Troy Van Leeuwen. “The Way You
Used to Do” kicks off with hand
claps, but soon the band locks in
as nasal-growl guitars and a snaking line by bassist Michael
Shuman wrap around Mr. Theodore’s booming beats. Frantic New
Wave percussion is the motor of
“Head Like a Haunted House.”
Arriving on Friday, “American
Dream” is LCD Soundsystem’s first
studio album since Mr. Murphy disbanded the group in 2011. Much as
QOTSA does on “Villains,” it refreshes rather than discards a familiar method. Here, the sound is
bright and intense, dense but not
overcrowded and, at its best, instantly appealing. Tracks open with
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Amsterdam
Athens
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Buenos Aires
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Tokyo
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Vancouver
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81 pc 93 81 s
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4 Take by force
9 Launch, e.g.
31 Prom rides
13 Constellation
between Cancer
and Virgo
14 Varnish
undercoat
34 Magnate
15 ___ Minor
16 Semicircle, say
17 What wets the
Washington
Monument?
19 Gourmet
seasonings
3 Saver of John
Smith
33 Poker player’s
payment
35 Tokyo, for the
2020 Olympics
36 Penn in NYC, for
one
37 Bivouac sights
38 Supplies with
funding
21 Mavericks’ home
39 Gets dents in
one’s hood, say?
22 Search
42 Rocky peaks
23 Flat-topped hill
43 Can’t do without
6 Yale rooters
34 Item with
strong metal
jaws
7 Combo’s
playlist
35 God of the
underworld
8 Exploits
37 Chophouse
choice
5 Spellbound
10 Not written
11 ___ Minor
56
12 Gets darker, in
a way
44 Help out new
24 Why spectrum
freshmen
fans visit Niagara
Falls?
47 Final
30 In poor condition
performance
32 Through
29 Pics on pecs
30 Prepare
potatoes, in a
way
53
59
51 What might
beat you to
blowing out the
candles on the
cake?
14 Hardly
sufficient
46 “The ball ___
your court”
23 Flowering tree
47 Large swallow
24 Soft drink brand
with several fruit
flavors
48 Sensible
25 Animals with
spiral horns
27 Guacamolemaking waste
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
49 Site for a stud,
perhaps
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activist, and the
letters changed
in the theme
answers
52 Refrain syllable
Previous Puzzle’s Solution
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44 Elevated
poetry
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increase
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doctor’s
waistband
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experiments
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to
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partners
38 Coffee roaster’s
offerings
18 Holds out
53 Nanki-___ (“The
Mikado” role)
55 Originates
28 Like penny
stocks
2 Paltry
9 Coffee sack
material
CLIMATE CHANGE | By Daniel Hamm
Across
1 Burden for
roadies
Down
1 Weary sigh
4 Investor’s goal
26
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6
22
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Omaha
82 59 s
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Orlando
88 74 t
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Philadelphia
70 62 r
80 65 pc
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109 86 s 109 86 s
Pittsburgh
74 58 c
78 61 pc
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Sacramento
99 62 s
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St. Louis
81 64 pc 84 67 pc
Salt Lake City
98 70 s
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San Francisco
71 58 s
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83 54 t
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Seattle
84 58 s
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81 57 s
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77 73 r
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108 84 s 107 85 pc
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84 69 c
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The researchers are taking detailed measures of each participant’s gait—both walking and
walking while talking—before
they start the eight weeks of
training. They’ll do so again
post-intervention, as well as six
and 12 months later, to see if any
effects are durable. Doctors are
also testing their brain activity
during the tasks.
“One of the issues has been if
you train someone to do a memory test, they appear to improve
on memory, but not anything
else,” Dr. Verghese says. That’s
known as “near transfer.”
They are hoping to show a far
transfer effect, meaning
that playing these
games won’t just
improve the cognitive processes
they’re working
on, but their
walking as well.
A similar 24person pilot
study published
in 2010 found that
the intervention and
control groups showed
improvements in walking and
walking while talking. But the
intervention group showed
much greater improvements.
The control group didn’t play
any computer games, so the researchers are trying to control
for any impact playing on a
computer might have in the current study.
Their ultimate goal is to help
clinicians identify seniors at risk
for dementia and other health
risks, such as falls, and to find
interventions to improve gait.
While the computerized cognitive training is the first intervention the doctors are testing,
other tests are under way. Another researcher is starting a
study in the fall to see whether
imagining walking could help improve gait. Previous research has
suggested it does.
The eight-week pilot study
will use a telephone intervention
with 40 frail seniors and talk
them through a visual imagining
exercise where they imagine
walking. The study will measure
whether their walking speed improves by the end.
The WSJ Daily Crossword | Edited by Mike Shenk
60s
80s
Continued from page A9
vice to the electronic walkway
and test the patients’ gaits.
Among their findings: Executive function, which takes place
in the brain’s frontal lobe and is
associated with complex planning, is critical when walking
while talking. A study they published earlier this year in the
journal Neurology found that the
levels of activation in this brain
region while walking and talking
is good predictor of future falls.
“This suggests that
there are changes in
the brain that show
up before clinical
signs, like slow
gait,” Dr. Verghese says.
Now the researchers hope to
improve gait by
improving executive function in a
federally funded study
testing the effect of a
computerized cognitive training program.
Three times a week for eight
weeks the participants come to
Albert Einstein to play computerized brain games for 45 minutes.
On a recent day, a computer
prompted 84-year-old Pedro Falcon to click a mouse as part of a
memory game involving Halloween candy. A research assistant
helped Natividad Jusino, 80, do a
word search on another computer.
The researchers have recruited about 120 participants
so far. They plan to have 420.
About half will be playing brain
games by CogniFit, which have
been shown to improve executive function. The company—
which sells games designed to
improve cognitive health—has
no affiliation with either researcher and isn’t funding any
of their studies.
The other half will be in a control group that also plays computerized brain games made by
CogniFit, but ones the researchers don’t believe stimulate the
same cognitive processes.
Mr. Fusilli is the Journal’s rock
and pop music critic. Email him at
jfusilli@wsj.com and follow him on
Twitter @wsjrock.
60s
60s
70s
ttl
Seattle
HEALTH
simple percussive patterns and grow as instrumental sounds arrive and layer, their
overtones coalescing as
the hooks dig in deep.
“Other Voices” is a fullblown dance track from
the jump as the drums
and bass played by Mr.
Murphy, doing double
duty, insist on motion.
An old-school drum-machine pulse
and a repeating note played on bass
introduce “Call the Police,” but soon
clouds of shimmering synths and
cymbals cushion Mr. Murphy’s
voice, which has never been more
limber than it is on this album.
Also, Mr. Murphy resurrects his
droll, deadpan delivery for the title
track and the relentless “Tonite,” a
sardonic commentary on the modern-rock scene that spins into a
portrait of paranoid delusion.
With the new albums, Queens of
the Stone Age and LCD Soundsystem deliver something above ordinary, if not something extraordinary. There’s little that’s startling
here, but not every album needs to
reinvent rock and pop. In “Tonite,”
Mr. Murphy opines: “Everybody’s
singing the same song” and “All
the hits are saying the same
thing.” That’s not entirely true, but
it acknowledges the need to adhere to audience expectations to
succeed. If risk-taking is at the
minimum on “Villains” and “American Dream,” the rewards are more
than few. And smart, good-time
rock is always welcome.
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
V
Vancouver
David Victor takes a floor maze test. Dr. Joe Verghese, inset, says the idea
is to study walking ability as an extension of brain function.
Queens of the Stone
Age, above, James
Murphy of LCD
Soundsystem, left
Weather
60s
ADRIENNE GRUNWALD FOR THE WALL STREET JOURNAL (2)
Veterans Offer More
Good-Time Rock
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THE WALL STREET JOURNAL.
Tuesday, August 29, 2017 | A11
LIFE & ARTS
MUSIC REVIEW
ARTIE SHAW’S
EARLY RETIREMENT
Logic performed the song at the MTV Video Music Awards on Sunday, joined by suicide-attempt survivors. Below, the rapper in April.
MUSIC
A Rapper Sends
A Suicide Lifeline
Logic’s breakthrough anthem ‘1-800-273-8255’ drives calls to a national hotline
BY JOHN JURGENSEN
A SONG that began with the
working title “Suicide” has
brought a new burst of life
to the career of a rapper
who is hammering a message of “peace, love and positivity.”
Logic, 27 years old, has
used that mantra and a tour
de force rap flow to transcend outsider status and
build a groundswell of fan
loyalty. Now he has earned
an unlikely breakthrough
with an anthem that he
named for the National Suicide Prevention Lifeline:
“1-800-273-8255.”
“Most people don’t usually give a sh-t about songs
like this,” he says of his first
commercial hit. On the radio
and the streaming music
charts, it’s the odd tune out,
surrounded by songs about
seduction, self-congratulation and nightlife adventure.
It’s not a one-off for
Logic. His third album, “Everybody” (which made its
debut at No. 1 on the Billboard album chart in the
spring) is a front-to-back exploration of thorny human
problems, and includes a
running dialogue with God
(voiced by astrophysicist
Neil deGrasse Tyson). Logic
burrows into personal issues:
a rough upbringing in Gaithersburg, Md., and struggles
as a biracial rapper in a noman’s-land of hip-hop, where
identity is strictly policed.
After nearly a decade of trying to show off his rap prowess, he says, he shifted his
priority: “How about just
trying to send the biggest
message I can?”
“1-800-273-8255” is written from the perspective of
someone who reaches out
for help and the operator
who answers the call. The
chorus shifts from “I don’t
wanna be alive” to “I want
you to be alive.” It has 167
million streams on Spotify
and 46 million views for official versions on YouTube, including a seven-minute music video featuring actor Don
Cheadle and a story about a
gay teen who fights through
his desperation.
Logic performed the song
on Sunday night at the MTV
Video Music Awards, where
he and the singers featured
on the track, Alessia Cara
and Khalid, were joined on
stage by suicide-attempt survivors wearing white Tshirts. Separately, the award
show paid tribute to two
rock singers who committed
suicide this year, Chris Cornell and Chester Bennington.
Since the release of
“1-800,” call volume is 33%
higher than the same period
last year for the National
Suicide Prevention Lifeline,
which is on track to field 1.8
million calls this year, direc-
tor John Draper says. Unlike
other portrayals of suicide in
entertainment, such as the
recent Netflix series “13 Reasons Why,” he says “1-800”
is the rare example that
sends a message of prevention, noting that the increase
in calls doesn’t take into account the people who heard
the song and “just felt more
hopeful” without needing to
call.
A couple of weeks before
the song’s release, the organization gave approval to use
its phone number, but didn’t
hear the track until the day
it was released. Dr. Draper
recalls his first listen and his
relief that it didn’t include
any F-words in its lyrics.
“After all, [the hotline] is
funded by the government,”
he says. Staff members have
taken to shouting out one of
the song’s signature lines to
each other at the office:
“Who can relate?”
Logic’s birth name is Sir
Robert Bryson Hall II and he
is known to friends as
Bobby. On the song “Take It
Back,” he describes a childhood with a black father and
white mother “addicted to
crack cocaine, alcohol and
various other drugs.” Though
he grew up poor and identifying as black, people often
assumed he was white—and
thus more privileged—based
on his appearance, a cultural
split that would carry over
into his music career. The
“Everybody” album is his
most public effort to reconcile his past and both sides
of himself, a sometimes uneasy peace.
On the title track, he raps:
“Everybody talkin’ ‘bout race
this, race that. I wish I could
erase that, face facts.” On
another verse, he says, “In
my blood is the slave and
the master. It’s like the devil
playin’ spades with the pastor.”
With a tightknit group of
collaborators, including a
manager his age, Chris
Zarou, Logic built a big
grass-roots following by
touring and releasing a series of underground mixtapes. After signing to the
Def Jam label in 2013, he released two albums that got
little mainstream notice, setting the stage for the more
personal and ambitious “Everybody.”
“I always wanted a hit record. I always wanted to be
on the radio. I always
wanted love and respect on a
mainstream level. I never got
it,” Logic says. “When I said,
‘Screw it, I’m going to make
this album for me,’ that’s
when all that mainstream
$
success started happening.”
In a genre where decadence and toughness is the
norm, Logic’s image is
proudly nerdy. In Chicago
last week, the last stop on a
summer tour, he started the
show by urging audience
members to stay hydrated
and to say hi to the fellow
fans standing next to them.
Wearing glasses, jeans
and loosely laced Nikes, he
paused the show to take on
members of his crew in a
game of Nintendo Mario
Kart, with the race shown on
the venue’s giant video
screens. He closed out the
concert by asking audience
members their names and
inviting a 17-year-old girl on
stage to rap along with him
at breakneck pace.
Though he built a career
on rap skills, he’s planning to
expand his style, starting
with the song he now performs at a piano during his
shows. “I’m done with rapping all the time,” he says. “I
want to sing and play ballads. I want to give you
something like Queen meets
James Brown with a positive
message. That’s where my
mind is going from here.”
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turing a full four-piece percussion section. “He’s Gone
Away” and “Foggy Foggy
Dew” indicate that Shaw
was paying attention to the
nascent folk-music boom.
And Tadd Dameron’s “So
Easy” and Gene Roland’s
arrangement of “I Get a
Kick Out of You” are rich in
the harmonic language of
bebop. All of these developments—Latin jazz, traditional songs, modern jazz—
were new colors in Shaw’s
musical palette.
As part of his contract
with Decca, Christopher
Popa’s liner notes explain,
Shaw was obliged to collaborate with other contract artists and arrangers,
not all of whom were to his
liking. Ironically, his biggest hit on Decca was “I’m
Forever Blowing Bubbles”
with an arrangement for
THE MOST familiar kind
of tragedy in American music is that of the great artist who dies young, like Bix
Beiderbecke or Charlie
Parker. Then there’s the
artist who does all of his
major work only in the
early part of his career, as
critics once said of Louis
Armstrong (though hardly
anyone would agree with
that assessment anymore).
Artie Shaw represents a
unique kind of cultural
tragedy: the major artist
who gives it all up at the
peak of his powers for reasons that seem baffling to
everybody else.
A new double CD reveals
what an irreparable loss it
was to music when Artie
Shaw stopped playing the
clarinet at age
44. (That he
lived another 50
years only adds
insult to injury.)
“These Foolish
Things: The
Decca Years”
(Sepia) collects
47 tracks recorded between
1949 and 1955,
including all of
his final big
Jazz clarinetist Artie Shaw (c. 1940)
band sessions
made before, as
he later bragged, he “made strings and choir that repa lamp” out of his clarinet.
resents Gordon Jenkins at
As Shaw later told me—
his most rococo. It seems
and many other interviewuncomfortably campy in a
ers—he hated the business
way that Shaw’s other muaspects of the music world
sic never was.
and cringed at the thought
Many years later, Shaw
of being forced to replay
delighted in telling me that
his “Begin the Beguine”
he didn’t think much of
and “Frenesi” every night.
nearly all of the singers he
Yet these swan-song tracks worked with. Still, most of
show that the bandleader
those heard here are emiwas making brilliant music
nently worthy of sharing
right up until his last note. the mic with the great clarFor most of those
inetist, especially Connee
tracks, Shaw does what he
Boswell and Dick Haymes;
did best: playing sumptualas, the two songs asous arrangements of the
signed to Boswell are forclassic songs that he
gettable, but the Haymeshelped define as standards, Shaw duet on “Count Every
graced by his own passion- Star,” a lovely French song
ate and moody clarinet so- that ought to be better
los, as on “Where or
known, is a highlight of
When” and “Love Walked
both careers.
In.” There are also stylMaybe Shaw was inishly swinging original
spired by Gioachino Rosworks played by his group
sini, who composed all of
the Gramercy Five (actuhis classic operas before
ally a septet here), among
he was 40 and then rethem “Crumbum” and “The tired. In the end, it’s insigShekomeko Shuffle.”
nificant that the music in
Yet new ideas abound as “These Foolish Things—
well: While earlier tracks
The Decca Years” repre(like both “Beguine” and
sents some of Shaw’s last.
“Frenesi”) had alluded to
It only matters that it’s
Pan-American styles, “Orisome of his greatest.
noco” and “Mucho de
Mr. Friedwald writes about
Nada” here are much more
music and popular culture
authentically invested in
for the Journal.
the Afro-Cuban idiom, fea-
MICHAEL OCHS ARCHIVES/GETTY IMAGES
FROM TO: JOHN SHEARER/GETTY IMAGES; RYAN JAY
BY WILL FRIEDWALD
THE WALL STREET JOURNAL.
A12 | Tuesday, August 29, 2017
SPORTS
RUNNING
A Marathon Icon Races the Clock
60-year-old Joan Benoit Samuelson will try to become the first female sexagenarian to crack three hours in her signature race
Joan Benoit Samuelson during her gold-medal run at the 1984 Olympics, left, and during the Quad-City Times Bix 7 in July.
leading researchers on endurance
performance, said at age 35 performance generally begins to decline
a minimum of 6% per decade and
then accelerates with time, especially after age 60.
Benoit Samuelson’s marathon
times, beginning with her personal
record of 2:21:21 in 1985 on Chicago’s fast and flat course, track
almost perfectly with a 6% per decade decline.
She has managed that with a
regimen that gives new meaning to
cross-training and will be music to
the ears of runners who hate the labors of quarter and half-mile speed
intervals. She says she hasn’t been
on a track in two decades, fearing
the turns will wreak havoc with an
irritable “lower back and hip thing”
that can aggravate the opposite
knee and ankle if she compensates
by altering her natural stride.
“I am playing with fire,” she said
of the attempt to break three hours
after her joints have pounded so
much pavement the past 40 years.
SOCCER
JOSÉ MOURINHO’S BIG
REBUILDING GAMBLE
BY JOSHUA ROBINSON
Manchester, England
JOSÉ MOURINHO arrived at
Manchester United last summer
with the sole mission of restoring
the club to greatness. United and
its fans had just been through
three of their worst seasons in decades, a spell that cost the team
tens of millions of dollars, not to
mention its old air of invincibility.
But with the Premier League
more competitive than ever,
Mourinho realized his team wasn’t
ready. So in his first year at England’s most storied club, he did
what no other elite manager would
dare. Right in front of everyone,
he openly put Manchester United
through a rebuilding season.
It is paying off very quickly.
Three games into this year’s campaign, there is an unmistakable
menace about the Red Devils.
United has swaggered to three
straight victories, outscoring opponents by a combined 10-0, and
sits alone atop the standings. The
club that hasn’t finished in the top
three since 2013 is now the British
bookmakers’ second-favorite to
win the title.
“If the best needed that time, it
means the others also need that
time,” Mourinho said last winter,
recalling that even United’s legendary manager Alex Ferguson got
off to a rocky start.
The difference between Ferguson and Mourinho, however, is that
United wasn’t the global sports behemoth it is today when Ferguson
took over in 1986. Back then, missing out on Champions League qual-
ification didn’t blow a $40 million
hole in the following season’s income. And Premier League managers lasted somewhat longer than
the current average of 18 months.
That’s why, at the top of English
soccer, rebuilding years are like embarrassing rashes. People have them
once in awhile, but it’s best if no
one brings them up. Arsenal’s Arsène Wenger has been attempting
to rebuild for a decade, though he
never once conceded that the club
was punting on a season. Chelsea
and Manchester City have had similar restructuring campaigns, but
their wild spending makes it too
awkward to admit that they aren’t
hoping for immediate returns.
Mourinho had no such qualms.
He settled for sixth place last season and made a gutsy call to focus
on winning the second-tier Europa
League instead of fighting for a
top-four spot to secure a lucrative
Champions League berth—and it
worked.
“We didn’t have many matches
last season where we played 90
minutes with the control we had
today,” he said after a commanding 2-0 victory over Leicester City
on Saturday.
That United is vastly improved
after a year under Mourinho is no
surprise. In every head-coaching
job he has ever held—at Porto, Inter, Real Madrid and two stints at
Chelsea—Mourinho has always
won the league in his second year.
One factor is that his particular
style of management—ruthless and
pragmatic—can quickly whip under-performing squads into shape.
The downside is that his approach
has also proven highly volatile. At
To prepare, Benoit Samuelson is
now stretching her weekly long
run to 20 miles every other week.
On the other days, she runs no less
than three and no more than 12
miles, varying her speed and distance depending on how she feels.
She races against cars for short
stretches during her runs to keep
her speed sharp.
She maintains her upper-body
strength partly with cross-country
skiing in the winter. A typical winter day will include a morning run,
downhill skiing until 1 p.m., and skiing cross-country until darkness descends. In the spring and summer,
she stays toned with kayaking and
working in her garden, lugging bags
of topsoil and digging through the
dirt to grow celery, kale, chard and
every kind of lettuce she can. Staying ahead of woodchucks has
proved challenging, she said.
She didn’t foresee competing
with herself and ticking clocks at
60, but she is a sucker for numbers and the stories they tell. She
figured she was finished after the
2008 Olympic Trials marathon.
She wanted to break 2:50 at 50
and finished in 2:49.08.
The following year organizers of
the New York City Marathon convinced her to use their race to celebrate the 25th anniversary of her
Olympic gold medal. (Result:
2:49:09, a course record for the
50-plus division). In October 2010
she couldn’t resist running Chicago on 10/10/10, 25 years after
she set the American record there.
(Result: 2:47:50, first woman to go
sub-three hours in five separate
decades.) Three weeks later she
was in Athens to celebrate the
2,500th anniversary of the Battle
of Marathon doing, well, you know.
In 2013, she marked her the
30th anniversary of her then bestever time in Boston with that 55plus best-ever time.
If Benoit Samuelson does go
“sub-3” at 60, her record may stick
for a good while. The current 50and over world record holder,
Tatyana Pozdnyakova (2:31:05), is
already 62. Linda Somers Smith,
who set the American 50-and-over
record (2:37:36) in 2012, is just 56years-old, but she said her law
practice is currently too busy to
consider one-upping a legend
again, as tempting as it is.
“I would have to have a change
in lifestyle or retire to even consider what Joanie is doing,” Somers Smith wrote in an email.
With Chicago weeks away, Benoit
Samuelson is searching for the right
balance between wanting to set another record and not taking the race
so seriously that she over trains
and wears out her legs on Maine’s
back roads, or goes out too hard in
the first half of the race. She tends
to find her rhythm as races progress, and she draws strength from
passing people in the final miles as
opposed to being passed. If she is
under 1:28 at the halfway mark, she
will be worried. “I need to run my
own race,” she said. “I said the exact same thing that day in L.A.”
million he shelled out for Belgian
striker Romelu Lukaku this year.
It means that Mourinho finally
has this squad where he wants it.
In his first campaign, he was able
to shore up the team’s issues at
the back and turned it into the
second best defense in the league.
Yet problems remained.
The club scored only 54 league
goals last season, five fewer than
it should have, according to the
expected goals statistic, which
projects results based on the quality of scoring chances.
Mourinho feels that he has already gone a long way toward fixing that. Nothing made that
clearer than the fact that both of
United’s goals against Leicester
came off the bench.
And the squad is only getting
deeper. United announced last
week that striker Zlatan Ibrahimovic would rejoin the club for
one more season as soon as he recovers from a knee injury.
Of course, Mourinho knows that
the first three weeks of a campaign never reflect the reality of
mid-season—so far he has faced
only one game a week with five
days to dissect each opponent.
Once European competition kicks
off in mid-September, United will
play every three or four days for
at least three straight months.
If that means occasionally reverting to the more defensive style
that bored United fans last season,
Mourinho said, so be it. At least
they know that this season, no
longer a reconstruction project,
holds the potential for more.
“Probably in some matches
where the opponent is playing better than us, we will have to be
pragmatic and realistic and defend,”
Mourinho said. “But in these three
matches we didn’t need that.”
José Mourinho, center, with
Manchester United on Saturday
ANDREW YATES/REUTERS
JOAN Benoit Samuelson is 60 years
old. That’s 33 years removed from
winning the first Olympic women’s
marathon in 1984, and 34 years past
running a world best time for 26.2
miles and nine years after she qualified for the Olympic Trials at 50.
But her addiction to milestones
has not abated.
So Benoit Samuelson is spending
her summer training hard, on the
Maine coast, for the Bank of America Chicago Marathon in October,
where she will try to become the
first female sexagenarian to crack
three hours in her signature race.
Benoit Samuelson, seemingly
even trimmer and fresher-faced
than when she won gold in Los
Angeles, describes the attempt as
“a long shot.” Those who have
watched her set age-group records
for 20 years think differently.
Regardless, Benoit Samuelson’s
mind is fixed on her 3-hour barrier. “It’s the human body against
the clock,” she said in a recent
interview.
Eventually, everyone loses that
race, but Benoit Samuelson has
forced a lot of running experts to
re-examine their notions of athletic
decay. What makes her different
from nearly every other elite athlete
is how long she has remained elite.
In all but the rarest cases, the
absurdly intense training and competition that elite athletes endure
leaves them limping in middle age
on balky knees, replaced hips and
sore backs.
Benoit Samuelson was the bestever at 25, when she finished the
1983 Boston Marathon in 2:22:43,
and again at 55, when she ran
2:50.29 in Boston in 2013, finishing
about two hours before the bombs
exploded at the finish line. In August, she set the U.S. record for
her age group for 10,000 meters,
finishing the Beach to Beacon race
in Maine, an event she created, in
39:19. That translates to a 6:21 per
mile pace.
Such performances have made
her an icon of the sport. Earlier this
year, she held the tape in Italy as
Eliud Kipchoge came within 26 seconds of breaking two hours in the
marathon in a Nike-produced stunt.
“What is most remarkable about
Benoit is both her greatness while
younger and an incredible record
of longevity at the highest level,”
said Dr. Michael Joyner, an expert
in exercise and physiology at the
Mayo Clinic in Minnesota.
Joyner, who once ran a sub 2:26
marathon and is one of the world’s
L-R: RON HEFLIN/ASSOCIATED PRESS, JOHN SCHULTZ/QUAD-CITY TIMES/ZUMA PRESS
BY MATTHEW FUTTERMAN
previous stops, Mourinho has
alienated veteran players, accused
his team of “betraying” his work,
and lost the confidence of his
stars. There’s a reason Mourinho
has never lasted longer than threeand-a-half years at a club.
But a more tangible secret of
Mourinho’s signature turnarounds
is the bluntest instrument in soccer: money. His employers over the
past decade—Chelsea, Inter, Real
Madrid and Manchester United—
have all opened their vaults and
Mourinho has promptly burned every penny available. By some measures, he is the highest-spending
manager of all time.
Fourteen months into
Mourinho’s tenure in Manchester,
his transfer-market tab is already
$406 million. That includes the
then-world record $130 million he
spent on French midfielder Paul
Pogba last summer and the $98
THE WALL STREET JOURNAL.
Tuesday, August 29, 2017 | A13
OPINION
Steve Bannon’s Revenge
When Steve
B a n n o n
phoned an editor at the
American
Prospect and
unloaded on
MAIN
his
White
STREET
House
colBy William
leagues, he
McGurn
effectively issued his own
pink slip. His offense was particularly egregious because it
came right after the president
had brought in a new chief of
staff to end West Wing behavior like Mr. Bannon’s.
But on his way out Mr. Bannon said something interesting. “The Democrats,” he told
Robert Kuttner, “the longer
they talk about identity politics, I got ’em. I want them to
talk about racism every day. If
the left is focused on race and
identity, and we go with economic nationalism, we can
crush the Democrats.”
Mr. Bannon’s words, like
Mr. Trump’s remarks during
his ill-fated post-Charlottesville press conference two
weeks ago, have been interpreted as smiling on white supremacists. Even some of the
president’s own top appointees have felt compelled to
put space between themselves
and Mr. Trump over his comments about a protest that
saw a young woman who was
counterprotesting fatally run
down by a protester’s car.
Still, Mr. Bannon invites the
question whether the spectacle of mobs targeting public
statues they don’t like and
suppressing the speech of
those with whom they disagree really advances the
Democratic cause.
Let us stipulate two points.
First, President Trump did attack the neo-Nazis and white
nationalists in his press conference. He further called the
driver who ran down 32-yearold Heather Heyer a “disgrace” and a “murderer.”
Second, the president also
rambled, which contributed to
his bungling any distinction he
hoped to make between Nazis
and KKK marchers on the one
hand from any others opposed
to tearing down the park’s
statue of Robert E. Lee.
For Democrats, this Trump
Tower press conference was
an Aha! moment: The president is dog whistling to racists! For the press, it vindicated their abandonment of
even the pretense of objectivity in all things Trump. As for
the self-styled Antifa movement, it helped justify Sunday’s effort in Berkeley to
deny the First Amendment
rights of yet another protesting group.
Mr. Trump was also
mocked for asking whether
statues of George Washington
would be next on the chopping block. We now have our
answer: Since Charlottesville
vandals have attacked a bust
of Lincoln, a monument to
Christopher Columbus and a
statue of St. Junípero Serra.
Oh, yes, a Chicago pastor has
asked Mayor Rahm Emanuel
to take down a statue of
Washington from a park because he was a slave owner.
Undoubtedly more is to
come. But if Mr. Bannon is
right, the anti-Trumpers behind it all might not be making the point they think.
A recent Reuters poll
shows 54% of Americans want
to keep the statues in place.
Surely this majority does not
reflect any national love for
the Confederacy. More likely
it means that, whatever their
The anti-Trump
response seems bent
on outdoing the
president’s excesses.
feelings about Gen. Lee or
President Trump, the American people recognize those
banging on about “hate” are
not really pushing tolerance
and inclusiveness.
Which feeds Mr. Bannon’s
point. In his phone call with
Mr. Kuttner, he referred to the
KKK, Nazi and white identity
marchers as “a collection of
clowns.” But he also appreciates that the anti-Trump
movement isn’t helped when
it is revealed that the woman
who toppled a Confederate
statue in North Carolina is a
member of the Workers
World Party that backs North
Korea.
Turns out Mr. Bannon has
some odd bedfellows here.
Take Ohio Gov. John Kasich.
While blasting the president’s
pardon of Sheriff Joe Arpaio
on “Meet the Press” Sunday,
he also suggested the Democratic Party is squandering a
“golden opportunity” to win
elections because Americans
don’t know what Democrats
stand for “other than the fact
that they don’t like Donald
Trump.”
Ditto for Bernie Sanders.
Like Mr. Bannon, Mr. Sanders
appreciates that identity politics is a loser for Democrats.
He says the Democratic Party
won’t stop “losing elections”
until it changes direction and
focuses on an economic agenda
that speaks to American working families and the young.
With all this, the received
wisdom, especially after the
failure of the Republican Congress to repeal ObamaCare, is
that the GOP is in the midst of
a collapse that may cost them
their majorities in Congress
come 2018.
Maybe. But it won’t be easy
to find the good Democratic
candidates necessary to gain
the 24 seats the party needs
in the House. As for the Senate, 10 Democrats are up for
reelection in states that went
for Mr. Trump, against only
one Republican in a state carried by Hillary Clinton.
During his campaign for
the presidency Mr. Trump infamously declared, “I could
stand in the middle of Fifth
Avenue and shoot somebody
and I wouldn’t lose voters.” If
it ends up that Charlottesville
doesn’t do the president any
lasting damage, it won’t be
because of any genius. It will
be because as bad or uncouth
as Mr. Trump may be, he has
a knack for bringing out even
worse in his opponents.
Write to mcgurn@wsj.com.
Russia’s Cold War With Scandinavia
By Azita Raji
T
he current relationship
between the U.S. and
Russia is eerily evocative of the Cold War, complete with aggressive aircraft
interceptions, harassment at
sea, and diplomatic expulsions. But there are significant, consequential differences between America’s
relationship with the Soviet
Union and with the Russian
Federation.
Today’s situation is more
perilous, made so by Russian
President Vladimir Putin’s
sense of grievance and revenge. Alliances have shifted
too. The nations of the Warsaw Pact dissolved that treaty
and most then joined the
North Atlantic Treaty Organization. What remains of the
nonaligned bloc is more nostalgic whimsy than an influential group of nations.
Consider Sweden and Finland. While they no longer assert their neutrality as they
did during the Cold War, the
Swedes and Finns are finding
it hard politically at home to
challenge the perceived benefits of nonalignment. They
seem to be playing it safe,
with one foot in the NATO
camp and the other—even if
lightly set down—outside it.
But for all the talk of neutrality, Sweden and Finland are as
militarily capable as some
NATO allies and enjoy a privileged relationship with the alliance.
The peril in this is Russia’s
growing ire at the increasingly
close relationships among the
Swedes, the Finns and NATO.
Russia has warned both nations of harsh consequences if
they join the alliance. This
ought not be dismissed as idle
blather: Mr. Putin has sent aircraft close to the Swedish border to run practice strikes on
Stockholm. Swedes and Finns
suffer Russian cyberattacks,
overflights and misinformation
campaigns meant to destabilize their governments.
The Kremlin prepares
military maneuvers in
the Baltic, as Sweden
and Finland sweat.
It’s no wonder Sweden and
Finland feel more vulnerable
than they did during the Cold
War. No longer effectively
neutral nor members of a
broad military alliance, they
are subject to Russia’s belief
that they side with NATO.
Swedes and Finns have responded robustly to Russian
aggression. They have boosted
military spending and signed
a mutual-support agreement
with each other.
These nations saw what
happened when Russia invaded Ukraine, which also had
a privileged partnership with
NATO. Without membership,
and the Article 5 protection it
offers, the alliance didn’t send
troops to Ukraine’s defense.
For Sweden and Finland, the
difference between the Cold
War and today is that they
don’t have the vague and unreliable “protection” of neutrality, nor do they have the
formal and real protection of
NATO. As tensions with Russia
increase, Swedes and Finns
are trapped in their historical
identity of neutrality and
their current position of military nonalignment.
The Russian military forces
currently gathering for next
month’s Zapad military exercise across the Baltic Sea will
be watched closely and with
grave concern in Stockholm
and Helsinki. But unlike during the Cold War, the Swedes
and Finns will be able to rely
on a strong defense relationship with the U.S., sealed with
bilateral memorandums of understanding that allow for
joint-military planning, exercises and intelligence exchanges. During my time as
U.S. ambassador to Sweden,
trilateral meetings among the
U.S., Sweden and Finland were
inaugurated and are further
tightening military cooperation.
While this close relationship
is no substitute for NATO
membership, the Russians
know the U.S. will not stand
idly by should they attack
Sweden or Finland. During my
tenure, then-Vice President Joe
Biden visited Sweden to affirm
the American commitment to
the region. Vice President Mike
Pence has repeated that
pledge.
Close diplomatic and military ties enhance regional stability. But without status and
standing in an alliance, and
given the chilling example of
Ukraine, a feeling of vulnerability persists. It’s a race
against time: Will Sweden and
Finland be able to join NATO,
escaping this perilous limbo,
before Russian aggression
overwhelms them? Or will
they continue to kick the can
down the road, hoping that
relations with Russia improve?
I’m reminded of a game I
played in childhood, “Spot the
Difference.” It involved looking at two pictures that
seemed to show the same
thing, but were in some subtle
ways different. It isn’t hard
for Sweden and Finland to
spot the difference between
the Cold War and today’s
pending conflicts. For one
thing, ground zero for any potential conflict will be their
own backyard.
Leaders in Stockholm and
Helsinki are about to witness
in Zapad a possible harbinger
of the future. How this leads
them to rethink their relationship with NATO will have a
profound impact on the security of generations to come.
Ms. Raji, a senior fellow at
the University of California,
Berkeley, was the U.S. ambassador to Sweden (2016-17).
Houston, It Gets Harder From Here
By Danny Heitman
M
y wife and I sobbed
when we saw Houston
underwater. After witnessing Hurricane Katrina and
last year’s massive Louisiana
flood up close, we know in a
special way what the people
of Texas and parts of my state
are going through today. Part
of our grief comes from knowing that for those touched by
Hurricane Harvey, the hardest
part is yet to come.
After last year’s flood destroyed my sister’s house,
forcing her family to move in
with friends, she asked me to
store her salvaged diningroom set until they rebuilt. I
made space for the lovely oak
table in our living room and
dispatched the matching
chairs to several corners of
the house. The table seemed,
in its first few days under our
roof, a solemn shrine to my
sister’s ordeal, a useful reminder of her daily challenges
long after the floodwaters had
receded.
But any horizontal plane in
our house becomes a kind of
coral reef, as oddities large
and small quickly colonize the
vacant surface. In no time,
our 16-year-old son, a robotics
buff, had appropriated the table for a workbench. A scatter
After a hurricane, the
cameras move on and
the world forgets.
of copper wire, pliers and
screws accumulated where,
not long before, a now-displaced household had shared
its meals.
I was initially troubled by
the thought that my son, a
typically sensitive young man,
had converted a casualty of catastrophe into a spot to tinker.
But I’d done essentially the
same thing, using one of my
sister’s chairs to hold some
books overflowing from my
bedroom nightstand. Soon the
legacy of loss blended into the
background of life. During the
year since the flood, I’ve
sometimes gone weeks without
remembering the extra furniture and why it’s there.
All of this has made me
think about the human capacity to domesticate any disaster into a dim memory. The
aftermath of Hurricane Harvey
has been terrible, yet the real
struggle will emerge in the
months ahead, after the news
caravans and the national attention migrate elsewhere, as
inevitably they will. The true
challenge for disaster victims
can be a sense of isolation as
people like me, those not directly hit, slip back into comfortable complacency.
It’s easy to think of short
attention spans as a weakness
of the Twitter age, but the
New Orleans journalist Lyle
Saxon put his finger on it after the Flood of 1927. “We are
a strange people—we Americans: we so soon forget,” he
wrote. “Before the water had
begun to recede, and while
some of the worst floods of
the year were taking place,
newspaper readers had become tired of the disasters
along the Mississippi. It was
already an old story. Newspaper men in the flooded area
were fed up on horror, fed up
on bravery, bored with the
terrible sameness of destruction. Even the rescuers were
sated. They had seen too
much suffering, had endured
too much. . . . The men who
had seen the most could not
talk about it.”
The tragedy of Harvey has
reminded me that compassion
for catastrophic suffering
shouldn’t be a momentary impulse, but a commitment of
months, maybe years. So I’ll
clear my sister’s table and
chairs, then invite her family
over to eat dinner on her dining set. We’ll hold hands and
pray for the day when she,
those hit by Hurricane Harvey,
and all flood victims near and
far will be made whole.
Mr. Heitman, a columnist
for The Advocate newspaper
in Baton Rouge, is the author
of “A Summer of Birds: John
James Audubon at Oakley
House.”
BOOKSHELF | By Frank Rose
When Machines
Run Amok
Life 3.0
By Max Tegmark
(Knopf, 364 pages, $28)
C
osmologists take on the big questions, and in “Life 3.0”
Max Tegmark addresses what may be the biggest of
them all: What happens when humans are no longer the
smartest species on the planet—when intelligence is available
to programmable objects that have no experience of mortal
existence in a physical body? Science fiction poses such
questions frequently, but Mr. Tegmark, a physicist at MIT,
asks us to put our “Terminator” fantasies aside and ponder
other, presumably more realistic, scenarios. Among them is
the possibility that a computer program will become not just
intelligent but wildly so—and that we humans will find
ourselves unable to do anything about it.
Mr. Tegmark’s previous book, “Our Mathematical
Universe” (2014), put a hugely debatable spin on the
already counterintuitive notion that there exists not one
universe but a multitude. Not all mathematicians were impressed. “Life 3.0” will be
no less controversial among
computer scientists. Lucid
and engaging, it has much to
offer the general reader. Mr.
Tegmark’s explanation of how
electronic circuitry—or a
human brain—could produce
something so evanescent and
immaterial as thought is both
elegant and enlightening. But
the idea that a machine-based
superintelligence could somehow
run amok is fiercely resisted by
many computer scientists, to the
point that people associated with it
have been attacked as Luddites.
Yet the notion enjoys more credence today than it did a
few years ago, partly thanks to Mr. Tegmark. Along with
Elon Musk, Stephen Hawking and the Oxford philosopher
Nick Bostrom, he has emerged as a leading proponent of
“AI safety” research, which focuses on such critical matters
as how to switch off intelligent machines before things get
out of hand.
In March 2014 he co-founded the Boston-based Future of
Life Institute to support work on the subject, and soon after
he helped stage a conference at which AI researchers from
around the world agreed that they should work not just to
advance the field of artificial intelligence but to benefit
humankind. This past January, he helped draw up a 23-point
statement of principles that has been embraced by some
1,200 people in AI, among them the authors of the leading
textbook on the subject and the founders of DeepMind, the
Google-owned company whose AlphaGo program defeated
one of the world’s top Go players last year in South Korea.
The issue is certainly timely. After decades in which
artificial intelligence promised much and delivered little,
recent breakthroughs in such target areas as facial
recognition, automatic translation and self-driving cars
have brought AI out of the woods. Amazon, Alphabet,
Facebook, Tesla and Uber are making huge investments in
AI research, as are Baidu and Alibaba in China. Where all
this will take us is the broader focus of Mr. Tegmark’s book.
The author was taken aback when he observed
an AI program teach itself to play an arcade
game—much better than its human designers.
Though he sees widespread benefits in fields ranging
from medical diagnosis to power-grid management, Mr.
Tegmark devotes the bulk of “Life 3.0” to how things could
go wrong. Most immediate is the threat of unemployment,
starting perhaps among Uber drivers before eventually
spreading to computer scientists whose machines have
learned to program themselves. Even more disconcerting is
the threat of an arms race involving cheap, mass-produced
autonomous weapons. As Mr. Tegmark points out, “there
isn’t much difference between a drone that can deliver
Amazon packages and one that can deliver bombs.”
Actually, bombs are crude compared with what AI could
deliver once it has been weaponized: Think drones the size
of bumblebees that could be programmed to kill certain
people, or certain categories of people, by grabbing their
skulls with tiny metal talons and drilling into their heads.
As horrific as that possibility may sound, it wouldn’t
threaten the existence of the human species.
Superintelligence might. No one really knows if a machine
will ever develop the general-purpose intelligence that
would be required. But in 2014 Mr. Tegmark caught a
glimpse of how it might. He was watching a DeepMind
program as it learned to play Breakout, a ’70s arcade game.
The object of the game is to break through a wall by
bouncing a ball off it repeatedly, knocking out a brick with
every hit. At first the AI was hopeless. But it quickly got
better, and before long it devised a relentlessly effective
technique that none of the humans at DeepMind had
thought of. It went on to learn 49 different arcade games,
including Pong and Space Invaders, beating its human testers
on more than half of them. Obviously it’s a very long way
from vintage arcade games to general intelligence, let alone
consciousness. But if a computer program can teach itself to
play games, it might be able to teach itself many other
things as well—slowly at first, then faster and faster.
What would that mean for humans? Nobody knows,
including—as he freely admits—Mr. Tegmark. Like horses
after the invention of the internal-combustion engine, we
might be kept on as show animals—although Mr. Tegmark’s
observation that the U.S. horse population fell almost 90%
between 1915 and 1960 is not exactly heartening. He
presents a dozen or so other scenarios as well. Would an
omniscient AI act as a “protector god,” maximizing human
happiness while allowing us the illusion that we’re still in
control? Would it decide we’re a threat and wipe us out?
It’s impossible to know that either. By failing either to
refute or champion the bulk of these possible futures, Mr.
Tegmark makes the whole exercise seem divorced from
reality. But he means it as a challenge: Rather than our
being told what is going to happen, he wants us to decide
what we want to happen. This sounds quite noble, if a tad
naive—until he invites us to debate the issue on a web site
that is chockablock with promo material for the book.
There’s a place for self-promotion, just as there’s a place for
killer-robot movies—but does either really contribute to our
understanding of what humanity faces?
Mr. Rose is the author of “The Art of Immersion” and a
senior fellow at the Columbia University School of the Arts.
THE WALL STREET JOURNAL.
A14 | Tuesday, August 29, 2017
OPINION
REVIEW & OUTLOOK
J
Our Political Central Bankers
anet Yellen didn’t run for President, but
But Ms. Yellen wasn’t nearly as optimistic
you wouldn’t know it from her policy dé- about lending in the later Obama years. She ofmarche Friday at the Federal Reserve’s an- ten fretted that tight credit conditions were
nual Jackson Hole retreat. The
limiting growth, and the facts
Fed officials defend
Fed Chair unleashed a defense
bear out that concern. Bank
of post-crisis financial regulain the current expanregulation that’s great lending
tion that shows how political
sion has trailed that of seven
for Goldman Sachs.
the world’s central bankers
previous recoveries, and lendhave become.
ing for small business has
“Already, for some, memobeen especially slow. None of
ries of this experience may be fading—memo- this is cause for Fed triumphalism.
ries of just how costly the financial crisis was
Banks are safer, but they should be after
and of why certain steps were taken in re- eight years of modest expansion. The real test
sponse,” Ms. Yellen said. She added that regula- of financial stability comes in times of economic
tory changes “should be modest” and retain the stress, when interest rates rise or investors get
superstructure built under Dodd-Frank.
nervous and rush to safer assets. The system
Ms. Yellen’s comments followed a blunter re- has already had one liquidity panic, in October
cent warning from Fed Vice Chair Stanley Fis- 2014, when the yield on U.S. Treasurys moved
cher, who told the Financial Times that “one some 40-basis points in a day.
can understand the political dynamics of this
You have to ignore history to believe that
thing, but one cannot understand why grown, regulators are suddenly so wise that they know
intelligent people” would “reach the conclusion the current regulatory regime will prevent the
that” you should “get rid of all the things you next crisis. The Fed misjudged the economy in
have put in place in the last 10 years.” Thank the mid-2000s and kept feeding easy credit that
you, Senator Warren, er, Fischer.
produced the housing bubble. Fed officials Ben
i
i
i
Bernanke and Tim Geithner then underestiThis is extraordinary. Fed officials are mated the financial risks in early 2008 when the
launching a political campaign to retain their stresses were already apparent.
vast discretionary control over the American
That’s one reason to support a financial refinancial system. The brazenness of the effort gime with high levels of capital to defend against
shows how far afield central bankers have potential losses but with less regulatory microroamed from their traditional remit of mone- managing. This is the trade-off that House Fitary policy, which Ms. Yellen barely mentioned. nancial Services Chairman Jeb Hensarling has
You’d think she’d focus on that duty given that proposed, which contrasts with the lower capital
the Fed faces a watershed as soon as next and lower regulatory barriers that the Trump
month as it decides whether to begin rolling Administration seems to prefer.
back the $4.5 trillion balance sheet it has
This is the debate we should be having, but
amassed since the 2008 financial panic.
the Fed wants Americans to believe that DoddThe size and scope of that balance sheet is Frank is gospel and the only alternative is to reitself a political intrusion because the Fed’s turn to pre-crisis policies. The irony is that Ms.
bond purchases are a form of credit allocation. Yellen is thus associating the Fed with the postThe purchase of mortgage securities favors crisis status quo that has been splendid for
housing, while the Fed’s focus on long-duration Goldman Sachs and giant banks that have
bonds has been a deliberate attempt to push in- gained market share and can afford higher regvestors into riskier assets.
ulatory costs.
These decisions haven’t done much for the
Ms. Yellen did concede that “there may be
real economy, which has grown at a historically benefits to simplifying aspects of the Volcker
slow pace since the recession ended in June rule” that limits propriety trading, which is the
2009. But the Fed has succeeded in lifting some least she can do since the rule as written is
asset prices, and no one knows what will hap- more than 950 pages of text and explanation.
pen to those prices once the Fed begins unwind- But until she runs for public office, she and the
ing its portfolio. Perhaps it will all unfold with- Fed ought to stick to executing regulatory polout a hitch, but some very smart people aren’t icy rather than trying to dictate it.
as sanguine.
Ms. Yellen’s term as Fed chair expires early
As for the stability of the financial system, next year, and her Jackson Hole foray is a signal
Ms. Yellen and Mr. Fischer are at pains to assure to President Trump about what he can expect
us that, due to their efforts, all is well. “Banks if he reappoints her. The Fed needs a leader who
are safer,” she says, thanks to capital and liquid- won’t bend to political pressure. But it also
ity mandates and the wisdom of financial regula- needs a leader who understands the limits of
tors. Oh, and “credit is available on good terms.” the Fed’s political role.
P
Behind the Bedlam in Berkeley
olitically charged street brawls broke direct confrontation. That can include violence,
out in Berkeley, California, on Sunday, vandalism and other unlawful tactics. Many
with police arresting 13 charming par- draw a false moral distinction between damagticipants on charges including private property and “coring assault with a deadly
Antifa activists believe porate” property.
weapon. One Twitter video
Antifa activists have also
in censorship and don’t developed
showed masked activists
their own moral
kicking a man curled in fetal rule out violence, as they justification for suppressing
position on the ground; the
speech and assembly. As
showed again Sunday. free
beat-down stopped only
anarchists, they don’t want
when a journalist, Al Letson,
state censorship. But they do
shielded the man with his
believe it’s the role of a
body. “I was scared they were going to kill healthy civil society to make sure some ideas
him,” Mr. Letson said.
don’t gain currency.
As Charlottesville drew attention to the
So they heartily approve of the heckler’s
worst elements of the far right, Sunday’s melee veto, seeking to shut down speeches and rallies
revealed an increasingly violent fringe of the that they see as abhorrent. Antifa activists also
radical left that has received far less media cov- search for and publicize damaging information
erage, much less criticism. It’s called Antifa, on their targets or opponents, or launch campronounced “An-tee-fa,” which is short for paigns pressuring their bosses or companies to
“anti-fascist.”
fire those opponents.
i
i
i
Words don’t constitute violence, despite
Antifa members sometimes claim their what Antifa activists believe. But there are danmovement spans the globe and dates to the gerous ideas and practices, and the radical left
1920s and ’30s, citing the 1936 Battle of Cable has embraced several of them. Democracies
Street, where protesters shut down a march by solve conflict through debate, not fisticuffs. But
the British Union of Fascists. But in the United Antifa’s protesters believe that some ideas are
States and Britain, Antifa grew in the 1980s pri- better fought with force, and that some people
marily out of the punk rock scene. As Nazi and are incapable of reason.
white supremacist skinheads became a bigger
Implicit in this view is that Antifa alone has
part of this largely un-policed subculture, far- the right to define who is racist, fascist or Nazi.
leftists met violence with violence, calling it It’s a guerilla twist on the culture wars, when
self-defense.
a microaggression must be met with a macroagAs it grew beyond punk, Antifa’s adherents gression.
organized through the now-defunct Anti-Racist
Antifa has also widely embraced “Black Bloc”
Action network and now sometimes through tactics, including disguising themselves with
the Torch Network, as well as other less visible black garb and covering their faces with bangroups. Many activists also aligned themselves danas and balaclavas. It’s not a good look for
with the broader anti-globalization movement. a supposedly anti-authoritarian group to show
But Donald Trump’s election has become the up in uniform, like the KKK in white hoods,
catalyst launching Antifa into a broader politi- much less armed with batons.
i
i
i
cal movement.
Which brings us back to Berkeley. This weekThe Antifa members we’ve interviewed shun
the Democratic Party label, saying their activ- end two right-wing groups sought to hold
ism constitutes its own political orientation. peaceful rallies. Their leaders—Patriot Prayer’s
They’re mostly anarchists and anarcho-commu- Joey Gibson, a Japanese-American, and Amber
nists, and they often refer to fellow protesters Cummings, a transgender Trump supporter—
as “comrades.” Adherents typically despise the explicitly denounced racism. Amid fears of viogovernment and corporate America alike, see- lence, both cancelled their events. Antifa
ing police as defenders of both and thus also le- showed up anyway, outnumbering and terrorizing any right-wingers or Trump supporters who
gitimate targets.
The anti-fascist anarchist website Crime- dared show their faces.
Antifa views itself as fundamentally reacthInc.com recently summarized its philosophy:
“In this state of affairs, there is no such thing tionary, as a necessary opposition to corrosive
as nonviolence—the closest we can hope to ideologies. But because your foe is a really bad
come is to negate the harm or threat posed by guy doesn’t mean you’re inherently a good one.
the proponents of top-down violence . . . so in- Movements are defined not merely by what
stead of asking whether an action is violent, we they oppose but by what they do. Antifa’s cenmight do better to ask simply: does it counter- sorious criminality resembles the very political
behavior it claims to fight. The mainstream left
act power disparities, or reinforce them?”
Antifa’s activists use the Orwellian-sounding ought to denounce it as much as the right
notion of “anticipatory self-defense” to justify should reject white supremacists.
LETTERS TO THE EDITOR
Attacking Opioid Abuse From Many Angles
John P. Walters, director of National Drug Control Policy under
President George W. Bush, and David
W. Murray note that President
“Trump Can Save Lives by Stopping
Illegal Opioids at Their Source” (oped, Aug. 15).
Messrs. Walters and Murray make
an impassioned argument for reducing the supply of these drugs entering our country. As the acting director of National Drug Control Policy, I
couldn’t agree more—the drug threat
cannot be effectively addressed unless we pursue a comprehensive approach that addresses both the supply and demand sides of the issue.
The good news is that the Trump administration is doing exactly that.
On the supply side, we’re cracking down on those who traffic
deadly drugs into the U.S. We’re
tightening security on the Southwest border and working across
government and with international
partners to stop the importing of illicit fentanyl into the country. We’re
also working closely with Mexico
and Canada on efforts to reduce the
flow of these dangerous opioids into
our countries.
On the demand side, the administration released nearly $500 million
in grants to states so they can treat
and prevent drug use on the local
level and, as Mr. Walters points out,
the President’s Commission on Combating Drug Addiction and the Opioid Crisis is working hard on its recommendations for how we can
reduce the demand for drugs.
We lost more than 52,000 people
to drug overdoses in 2015. When it
comes to reducing drug use and its
consequences, all options should be
on the table. President Trump is
committed to turning the tide on
this crisis, and I’d like to thank Mr.
Walters for both his past service to
the nation and for continuing to
bring much-needed attention to the
importance of reducing the supply
of these dangerous drugs entering
the U.S.
RICHARD BAUM
Acting Director
National Drug Control Policy
Washington
An alternate strategy would be to
eliminate the satisfaction surveys
that can result in a physician’s Medicare reimbursement being reduced if
he or she fails to provide opioids in
an amount or duration that a patient
deems satisfying. Since illegal opioid
use has been shown to track proportionally with legal use, this will address both aspects of the problem. It
will not address the tiny fraction of
“doctors who prescribe excessive
amounts,” but it will address the
much larger fraction who will give a
little more, a little stronger dose or
for a longer post-injury period to a
coercive patient.
Opioids, measured in morphine
milligram equivalents, are now prescribed in the U.S. at a rate 11 times
higher than in the first decade of my
career, and currently four times
higher than in Western Europe. A
policy modeled after one for cocaine
that only addresses illegal use is dubious.
STEPHEN L. BROTHERTON, M.D.
Fort Worth, Texas
It is important to remember the
impact of the opioid crisis on the
youngest among us. The number of
children in foster care has increased
significantly due to the opioid epidemic. In 2005 parental substance
use was a factor leading to removal
from the home for 25% of children in
foster care; by 2015 that had increased to nearly a third of children.
Medicaid is the glimmer of hope
for millions of families, including
those who might have nowhere else
to turn without it. We would do well
to remember this when discussing
ways to “fix” Medicaid, or we risk
cutting off a critical lifeline for millions of vulnerable children.
FERNANDO STEIN, M.D., FAAP
President
American Academy of Pediatrics
Washington
Almost no one dies from drug
overdoses in Portugal, where drugs
of abuse were decriminalized 10
years ago. A coincidence? It seems
more likely that ending the relationship between the criminal justice
system and victims of drug abuse
and investing our resources in treatment and rehabilitation (which for
some may have to include heroin or
morphine maintenance), would be a
more effective way of saving the
lives of our drug-dependent victims.
NELSON GOODMAN, M.D.
Annapolis, Md.
Mizzou Could Learn From Patten on Rhodes
Regarding Jillian Kay Melchior’s
“Mizzou Pays a Price for Appeasing
the Left” (op-ed, Aug 21): I believe
the state of Israel’s stance that it
doesn’t negotiate with terrorists offers a lesson for Mizzou administrators and the administrators of other
colleges and universities. As students
try to remake universities and colleges in their own flavor of the day,
perhaps administrators and university presidents should just say no.
Chris Patten, chancellor of Oxford
University, offers an example to emulate, cited by L. Gordon Crovitz in
“Rhodes Must Not Fall” (Information
Age, Jan. 25, 2016): “Chancellor Chris
Patten this month told students to
open themselves to challenging ideas
or ‘think about being educated elsewhere.’”
Mr. Patten was answering demands
that the university expunge its history with Cecil Rhodes, including removing a statue of its imperialist
graduate and benefactor. Mr. Crovitz
Yale Has No Safe Spaces,
Isn’t Covering Up Anything
Your “Notable & Quotable” of
Aug. 23 ignores facts that were
known before it appeared and subsequent to the YaleAlumniMagazine.com blog post you quote.
Yale has stated that while the
university has an obligation not to
hide from or destroy reminders of
unpleasant history, it chooses the
symbols and depictions that stand
in places of honor. The stonework in
question was near an entrance previously closed to the public that became the main entrance to the Center for Teaching and Learning. Yale
announced on Aug. 22 that it will
be removing the covering that a
construction project team had
placed on the stonework and will
move the carving to a place where
it can be viewed, studied and contextualized.
Covering, altering or destroying
works of art represents an erasure
of history, and is not consistent
with principles adopted by the university in a December 2016 report.
EILEEN O’CONNOR
Yale University
New Haven, Conn.
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.
continues, quoting Mr. Patten: “That
focus on Rhodes is unfortunate, but
it’s an example of what’s happening
on American campuses and British
campuses. One of the points of a university, which is not to tolerate intolerance—to engage in free inquiry and
debate—is being denied. People have
to face up to facts in history which
they don’t like and talk about them
and debate them.”
ROBERT RUSNAK
Edina, Minn.
As a 1965 journalism graduate of
the University of Missouri, I think
Ms. Melchior’s op-ed is an obituary
for the freethinking and civil debates
we would have in literature, psychology and political science classes during the mid-1960s. The student body
was evenly Republican and Democratic with few if any liberals. The authoritarian regime of George Orwell’s
novel “1984” where wrong thought
was a serious crime may be the order
of the day at Berkeley but the 35%
decline in freshman enrollment at
Mizzou as students voted with their
feet speaks volumes.
DAVID P. CARTER
Seminole, Fla.
Genuine free-market competition
always includes the moral dimension
of choice. It is the consequences of
that competition that Mizzou now
faces. Perhaps the solution is obvious.
Enact legislation to dictate the appropriate moral dimensions, rather than
permitting free markets and choice to
undermine progressive moral agendas. Problem solved.
VINCE SKOLNY
Los Angeles
Pepper ...
And Salt
THE WALL STREET JOURNAL
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but wouldn’t it be fun
to have a barista?”
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Tuesday, August 29, 2017 | A15
OPINION
By John Bolton
A
lmost certainly, the war in
Afghanistan will be won or
lost in Pakistan. President
Trump’s announcement
last week that he will send
more U.S. troops—some sources say
another 4,000—to Afghanistan represents a change in tactics from President Obama’s policy. But the ultimate
objective is still opaque, and even
once the specifics are articulated,
what may ultimately matter more is
the still-undeveloped “South Asia
policy” promised by Defense Secretary Jim Mattis.
Careless U.S. pressure
could push the country’s
nukes into the hands of
Islamic fundamentalists.
China can be helpful.
That means dealing with Pakistan.
Islamabad has provided financial and
military aid, including privileged
sanctuaries, to the Taliban, the
Haqqani network, Gulbuddin Hekmatyar, Islamic State, al Qaeda and other
malefactors, allowing them not just to
survive but flourish. President Trump
rightly says this must stop and is encouraging Pakistan’s principal adversary, India, to increase its economic
assistance to Afghanistan.
But the task isn’t so straightforward. The Bush and Obama administrations also criticized Pakistan’s support for terrorists, without effect.
Putting too much pressure on Pakistan
risks further destabilizing the already
volatile country, tipping it into the
hands of domestic radical Islamicists,
who grow stronger by the day.
Peter Tomsen, a former State Department regional expert, once
described Pakistan as the only government he knew consisting simultaneously of arsonists and firefighters—often the same people,
depending on the situation. Pakistan
has teetered on the edge of collapse
ever since it was created in the 1947
partition of British India. Its civilian
governments have too often been
corrupt, incompetent or both. The
ouster last month of Prime Minister
Nawaz Sharif—he stepped down after
the Supreme Court disqualified him
for not having been “honest”—is no
reassurance. If anything, it shows the
judiciary’s excessive politicization,
which further weakens constitutional
governance.
Islamabad’s military, sometimes
called the country’s “steel skeleton,” is
equally problematic. It recalls the old
remark about Prussia: Whereas other
countries have armies, Pakistan’s
army has a country. The military is
also becoming increasingly radicalized, with Islamicists already in control of its intelligence services and
now working their way through the
ranks of the combat branches.
In this unstable environment,
blunt pressure by the U.S.—and, by
inference, India—could backfire. Just
as America must stay engaged in Afghanistan to prevent the Taliban and
other terrorists from retaking control, it is also imperative to keep Islamabad from falling under the sway
of radical Islamicists. Hence the danger of inadvertently strengthening
their hand by supplying a convenient
narrative of overt U.S. dominion.
AFP/GETTY IMAGES
The Danger of a Jihadist Pakistan
The country’s ousted prime minister, Nawaz Sharif, in Lahore, Aug. 14.
Such a blunder might help Pakistan’s
radicals seize power even as the U.S.
battles terrorists in Afghanistan.
Remember that Pakistan has been
a nuclear state for nearly two decades. The gravest threat is that its
arsenal of nuclear warheads, perhaps
up to 100 of them, would fall into radical hands. The U.S. would instantly
face many times the dangers posed by
nuclear Iran or North Korea.
If American pressure were enough
to compel Pakistan to act decisively
against the terrorists within its borders, that would have happened long
ago. What President Trump needs is a
China component to his nascent South
Asia policy, holding Beijing accountable for the misdeeds that helped create the current strategic dangers.
Of all the external actors, China
bears primary responsibility for Pakistan’s and North Korea’s possession
of nuclear weapons and ballistic missiles. For its own strategic reasons,
China gave both countries direct financial, scientific and technological
assistance and then flew political
cover at the United Nations and elsewhere. Empowering Islamabad was a
hedge against India, China’s biggest
threat in South Asia. Helping Pyongyang was a play against the U.S. and
its Asian allies. (And, increasingly,
against the wider world, since North
Korea appears to have sold its technology.)
In both cases China recklessly disregarded the risks of proliferation
and breached its obligations under
the Nuclear Non-Proliferation Treaty.
By comparison, Beijing’s flagrant violations of its World Trade Organization commitments are trifles. China
was hardly unaware that Pakistan has
fostered and aided Islamic terrorists
in Kashmir, threatening Indian control. Yet Beijing has done nothing to
stop it, thus indirectly keeping IndoPakistani relations tense.
China has also made Pakistan a
considerable beneficiary of the massive transportation infrastructure
and other projects related to its
“One Belt, One Road” initiative.
Clearly Beijing intends to bind Islamabad ever more tightly into its modern-day “co-prosperity sphere.”
It must, therefore, be core American policy to hold China to account,
even belatedly. The U.S. can use its
leverage to induce China to join the
world in telling Pakistan it must
sever ties with terrorists and close
their sanctuaries. The Trump administration should make clear that Beijing will face consequences if it does
not bring to bear its massive interests in support of this goal. Washington could also point out that this is in
Beijing’s own interest, lest the terrorists rise next among the Uighurs in
China’s Xinjiang province, what was
once “East Turkestan.”
Whether Beijing truly intends to be
a “responsible stakeholder” in international affairs, as its U.S. advocates
insist, should be put to the test—and
not merely on monetary and trade issues. Fighting international terrorism
and nuclear proliferation requires determination and action, not the kind
of smiling repetition of bumpersticker phrases that the People’s Liberation Army and China’s political
leadership blithely ignore.
Starting now in Afghanistan and
Pakistan, China should be told its
bona fides as a state engaging in a
“peaceful rise” are on the line. If real
proof of that conceit does not
emerge, Washington will be entitled
to draw the appropriate conclusions.
Mr. Bolton is a senior fellow at the
American Enterprise Institute and author of “Surrender Is Not an Option:
Defending America at the United Nations and Abroad” (Simon & Schuster, 2007).
Congress Has Exposed Patients’ DNA to Prying Eyes
By Twila Brase
T
he 21st Century Cures Act was
hailed as the biggest healthcare reform since ObamaCare.
It’s easy to see why: The law, which
passed both houses of Congress by
unanimous consent last December, increased the budget of the National Institutes of Health, designated nearly
$2 billion for cancer research, and set
aside $500 million in 2017 alone to
address the opioid crisis.
Unfortunately, the legislation also
weakened patients’ privacy rights.
Americans were already vulnerable
under the Health Insurance Portability
and Accountability Act of 1996. That
law allowed government-funded researchers to collect and even share
patients’ medical and genetic information without their consent. But the
21st Century Cures Act goes further.
In an effort to promote medical breakthroughs, the law tries to create an
“information commons”: a government-regulated pool of data accessible
to all health researchers, regardless of
background, training or motive.
Although speeding research is a
noble goal, there’s little evidence that
patients are willing to sacrifice their
privacy the way that the 21st Century
Cures Act requires. A 2007 survey by
the Institute of Medicine found that
only 1% of Americans were willing to
have their health information shared
for research without their consent.
Yet the new law doesn’t give patients
in government-funded research any
method to opt out of data sharing. It
prohibits “information blocking” by
health-care providers, essentially
mandating that doctors and hospitals
share data with government researchers. It encourages the creation
of a “global pediatric clinical study
network” to pool data on children
world-wide.
Federal courts have upheld forced
data sharing because patients “voluntarily” give personal health information to their doctors. Some jurists and
legal scholars, however, argue that today’s laws don’t adequately protect
privacy. Consider the Supreme
Court’s unanimous 2012 decision in
U.S. v. Jones. “It may be necessary,”
Justice Sonia Sotomayor wrote in a
concurring opinion, “to reconsider
the premise that an individual has no
reasonable expectation of privacy in
information voluntarily disclosed to
third parties.” Although that case was
about law-enforcement surveillance,
Justice Sotomayor’s warning that the
current privacy laws are “ill suited to
the digital age” applies equally to
medical research.
How ‘anonymous’ is the
health information that
federal law helps pool?
Less than you’d hope.
In theory, the data shared under
the 21st Century Cures Act can’t be
traced back to individual people. It’s
stripped of direct identifiers like
names, street addresses and Social
Security numbers. But with big data
virtually everything is traceable. A
few years ago Harvard researchers
examined about 600 anonymized
profiles from a genome-research
project. Participants had provided a
few small pieces of information:
birth date, sex and ZIP Code. By comparing that against public records
and voter data, researchers were
able to identify nearly half of these
people by name. The same approach
could work on medical records containing sensitive information about
alcoholism, illegal drug use or sexual
abuse.
Even if researchers stopped asking
for birth date, sex and ZIP Code, anyone with an internet connection and
a decent understanding of biology
could link genetic data to individual
patients. In 2013 a group of researchers led by MIT’s Yaniv Erlich took
anonymous genetic information and
cross-referenced it against a public
database genealogists use to match
small differences in Y chromosomes
with certain family trees. That helped
establish the anonymous donors’ surnames, which were then cross-referenced with other public records, like
voter and tax rolls. In this way the researchers were able to identify dozens of completely “anonymous” people.
The 21st Century Cures Act isn’t
the only federal legislation that
threatens patient privacy. A bill introduced in March by Rep. Virginia Foxx
(R., N.C.), the Preserving Employee
Wellness Programs Act, would give
companies leverage to push genetic
tests on their workers. Those who opt
out could have their insurance premiums raised by up to 50%.
This genetic-testing requirement
could quickly lead to discrimination,
since companies would have an enormous incentive to avoid hiring people at high risk of serious illness. Although managers might never admit
to firing people with risky genetic
profiles, they could give these workers bad reviews or deny raises to
force them to quit.
When the Founding Fathers wrote
the Fourth Amendment, which protects against “unreasonable searches
and seizures,” they were thinking of
abusive government agents kicking
down doors. But with modern technology, state officials and big companies don’t need to resort to brute
force. In the internet age, they can
get sensitive information from the
comfort of their offices—and the law
allows them to do just that.
Ms. Brase, a registered nurse, is
president of the Citizens’ Council for
Health Freedom.
Why Would Anyone Sane Be a Bank Director?
By Thomas P. Vartanian
B
ank regulators have imposed responsibilities on directors that
are hindering good governance
of banks. But don’t take my word for
it. The Board of Governors of the Federal Reserve System and the Treasury
Department say so.
Treasury concluded in June that
regulators’ expectations may be
crowding out critical board functions,
blurring the responsibilities between
directors and management, and imposing a “one size fits all” approach.
On Aug. 3, the Fed asked for comment on the elimination or amendment of redundant and ineffective director responsibilities, including 170
it identified in 27 different regulatory
pronouncements.
This represents an about-face. In
response to every financial crisis
over four decades, Congress and regulatory agencies, including the Treasury and Fed, have sought to improve
bank regulation—which in practice
has meant continuously increasing it.
That has created a “rising dough”
syndrome of regulation—a continuing expansion of regulatory obligations imposed on directors, and a
corresponding expansion of the basis
for lawsuits against them when their
institutions fail.
I had a front-row seat at the outset of this trend in 1982, when in the
face of the projected failure of
nearly all of the nation’s 4,000 savings-and-loans, the Federal Home
Loan Bank Board launched programs
that resulted in an unprecedented
number of administrative enforcement actions and liability cases
against directors and officers. The
goal was to inject market discipline
to counter the “heads I win, tails you
lose” risk-reward ratio created by
federal deposit insurance. The effort
focused on those who overtly caused
the failures. Ten years later the Federal Deposit Insurance Corp. issued
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a similar policy statement articulating its standards for suing directors
and officers after the failures of
their institutions.
The Fed now believes that “supervisory expectations for boards of directors and senior management have
become increasingly difficult to distinguish.” Boards that meet periodically cannot effectively undertake
management’s day-to-day operational responsibilities, or the oversight role of regulators. Record-keeping, board process and regulatory
noncompliance criticisms have increased, but the blizzard of increasing responsibilities has not necessarily improved board performance or
reduced the risk of financial distress.
The Fed now wants to improve corporate governance by having boards
devote less time to satisfying supervisory expectations that do not directly relate to their core responsibilities, and devoting more time to
what really matters, such as establishing strategy and risk tolerance
and holding senior management accountable.
The Fed and Treasury are years
late to this conclusion, and two important factors are missing from
their analyses. Neither focuses
enough on the most important challenge that directors face: determining how to balance the need to make
an objectively measurable profit
against more subjective judgments
about how much risk a bank can
safely assume. If directors mess up
that job, not much else matters.
They’re asked to do
too much, and then
they get sued for failing
to do the impossible.
The second unaddressed question
is the all-important endgame for directors: When and how are they held
financially accountable if their institutions fail? As director obligations
have expanded since 1982, FDIC receivership suits against directors of
failed banks have multiplied, with an
increased focus on the FDIC’s recouping its financial losses.
That is a legitimate goal. But
when FDIC lawsuits are driven by the
availability of insurance coverage or
personal assets, rather than whether
directors made inappropriate decisions, the incentives for directors
turn perverse. If directors believe
they’ll be sued in the event of failure
no matter how they acted, why not
throw a financial Hail Mary when
failure looks likely? The FDIC should
follow the Fed and Treasury leads
and re-evaluate its director and officer liability program to ensure that
justice and the facts are the prevailing standards.
Recalibration of the regulatory demands on and potential liabilities of
bank directors would give them the
tools, incentives and freedom to be
more effective overseers of the backbone of the U.S. economy and better
avoid future financial crises. Holding
bank directors financially responsible only for the actions they can control, rather than the economic events
they cannot, would strengthen the
banking system, improve corporate
governance, and deepen the pool of
qualified bank directors.
Mr. Vartanian is a partner at the
law firm Dechert LLP and a former
general counsel of the Federal Home
Loan Bank Board.
Notable & Quotable: Silicon Valley Conformity
From “Trump Damaged Democracy, Silicon Valley Will Finish It Off”
by Joel Kotkin, DailyBeast.com,
Aug. 27:
For all its talk about “disruption,”
Silicon Valley is increasingly about
three things: money, hierarchy, and
conformity. Tech entrepreneurs long
have enjoyed financial success, but
their dominance in the ranks of the
ultra-rich has never been so profound.
They now account for three of world’s
five richest people—Bill Gates, Jeff
Bezos, and Mark Zuckerberg—and
dominate the list of billionaires under 40.
Unlike their often ruthless and unpleasant 20th century moguls, the Silicon Valley elite has done relatively little for the country’s lagging
productivity or to create broad-based
opportunity. The information sector
has overall been a poor source of new
jobs—roughly 70,000 since 2010—with
the gains concentrated in just a few
places. This as the number of generally
more middle-class jobs tied to producing equipment has fallen by half
since 1990 and most new employment
opportunities have been in low-wage
sectors like hospitality, medical care,
and food preparation.
The rich, that is, have gotten
richer, in part by taking pains to minimize their tax exposure. Now they are
talking grandly about having the government provide all the now “excess”
humans with a guaranteed minimum
income. The titans who have shared
or spread so little of their own wealth
are increasingly united in the idea
that the government—i.e., middleclass taxpayers—should spread more
around.
A16 | Tuesday, August 29, 2017
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Gasoline prices jump
after storm damages
refineries in Texas and
causes shortage fears
BY STEPHANIE YANG
AND ALISON SIDER
Gasoline prices surged
Monday on concerns over a
shortage in supply after Tropical Storm Harvey knocked out
refining operations and traders tried to assess damage in
the Houston area.
Harvey barreled into Texas
on Friday as a Category 4 hurricane, the strongest to hit
Texas in half a century, but
has since been downgraded to
a tropical storm. Still, on Monday Harvey looked poised to
move back over the Gulf of
Mexico before coming back
ashore, dumping more heavy
rain on Houston and the surrounding region.
Traders remained focused
on the possibility that Harvey
might now approach Louisiana
and that the onslaught could
cause damage to fuel-making
plants that could take weeks
or even months to fix.
The storm had disrupted
15% of U.S. refinery capacity
as of Monday morning, and
the percentage was growing.
Exxon Mobil Corp. said its
362,300-barrel-a-day refinery
in Beaumont, Texas, is running
at reduced rates. The total
amount of refining capacity
offline could rise as high as
30% if Harvey moves toward
Louisiana, according to Houston energy investment bank
Tudor Pickering Holt & Co.
“There are so many things
that are left up in the air
here,” said Tariq Zahir, managing member of Tyche Capital Advisors, who said significant
moves
in
energy
prompted him to start trading
at 6 p.m. EDT on Sunday,
when Asian markets opened,
and continue into Monday.
Gasoline futures for September delivery jumped in the
biggest one-day dollar gain in
more than three months, clos-
RICK WILKING/REUTERS
Harvey Sows Disarray in the Oil Patch
A damaged oil tank near Seadrift, Texas. The storm disrupted the state’s refining capacity.
ing up 4.57 cents, or 2.7%, at
$1.7123 a gallon on the New
York Mercantile Exchange.
Diesel futures rose 1.29 cents,
or 0.8%, to $1.6352 a gallon.
Volatility in energy markets
picked up Thursday as Harvey
was upgraded to a hurricane.
As the storm developed over
the weekend, the uncertainty
over the lasting damage added
to the frenetic trading.
“I’ve gotten clients calling,
[asking] what do we do?” said
Mark Waggoner, president of
Excel Futures. “I don’t even
remember the last time it was
this busy walking in the door.”
Harvey’s path cut right
through the heart of U.S. oil
infrastructure, with the Texas
coast being home to nearly
30% of the country’s refining
capacity. Exxon Mobil said
Monday that a floating roof on
a storage tank at its Baytown
plant, the second-largest refinery in the country, was damaged during the storm. If
plants need to get new electri-
cal equipment and other parts
installed to repair damage
from flooding, that could extend downtime significantly.
“The market is going to
trade from data point to data
point,” said Mark Benigno, codirector of energy trading at
INTL FCStone. “Are more refineries going to shut in? Will
they be shut in for longer?
Conversely, will they come
back sooner? How long will it
take ships to get in and out of
Houston Ship Channel?”
BY GREG BENSINGER
AND DREW FITZGERALD
MATTHEW MAHON FOR THE WALL STREET JOURNAL
BY CHRISTOPHER WHITTALL
AND MIKE BIRD
Jeremiah Goldsmith, an in-home adviser for Best Buy in Austin, Texas, can help arrange for repairs, installations and deliveries.
Gadget Sellers Make House Calls
BY KHADEEJA SAFDAR
AND LAURA STEVENS
Best Buy Co. and Amazon.com Inc. see the future of
selling electronics—and it’s
happening in your living room.
Best Buy is hiring hundreds
of salespeople to sit down with
consumers inside their homes
and recommend electronics to
buy, part of a free service it
has been testing in several cities and plans to roll out across
the U.S. this fall.
The company hopes its inhome salespeople will help
drive sales of TVs and gadgets
at a time when fewer people
are visiting shopping centers,
as well as drum up business for
Best Buy’s Geek Squad, which
provides tech repairs and inhome installations for a fee.
The new program “allows us
to unlock latent demand,” Best
Buy Chief Executive Hubert
Joly said in an interview.
“What we’re finding is people
in the home tend to spend
more because we address a
Plugged In
Wal-Mart
13.9%
U.S. electronics sales
leaders, by dollar value*
29.3%
Other
Best Buy
38.2
11.2
7.6
Note: figures don’t equal 100% due to rounding
Amazon
Apple
U.S. category leaders†,
by dollar value*
Laptop computers
Others
Digital cameras
23.7%
29.9%
18.5
8.6
4.2 7.4
TVs
Desktop computers
7.7
Videogame systems
Tablets
*For the quarter ending June 2017 †Doesn’t include cellphones
Source: TraQline
bigger need for them compared to what they spend in
the store.”
Amazon, meanwhile, is expanding a program that sends
its employees into homes to
THE WALL STREET JOURNAL.
provide free “smart home consultations” and let shoppers
test its Echo smart speakers
and voice-controlled devices.
These consultants can also
provide fee-based installation
Apple Prepares to Launch Next iPhone
BY TRIPP MICKLE
AND DREW FITZGERALD
Apple Inc. has scheduled a
product-announcement event
on Sept. 12, according to people
briefed on its plans, reinforcing
expectations that the technology giant will release new
iPhones and a smartwatch well
ahead of the holiday shopping
season.
The company is expected to
unveil three iPhones, according
to other people familiar with its
plans. Those include a showcase iPhone to mark the product’s 10th anniversary that is
larger and pricier and features
an edge-to-edge display and facial-recognition technology, as
Storm hammers energy,
insurer stocks..........................B12
Heard on the Street: Lessons
for U.S. oil..................................B12
Uber Pick
For CEO
Is Unlike
Kalanick
Crisis-Era
Scourge
Reignites
Worries
LONDON—The synthetic
CDO, a villain of the global financial crisis, is back.
A decade ago, investors’
bad bets on collateralized debt
obligations helped fuel the crisis. Billed as safe, they turned
out to be anything but. Now,
more investors are returning
to CDOs—and so are concerns
that excess is seeping into the
aging bull market.
In the U.S., the CDO market
sank steadily in the years after the financial crisis but has
been fairly flat since 2014. In
Europe, the total size of the
market is rising again—up
5.6% annually in the first
quarter of the year and 14% in
the last quarter of 2016, according to the Securities Industry and Financial Markets
Association.
Collateralized debt obligations package a bunch of assets, such as mortgage or corporate loans, into a security
that is chopped up into pieces
and sold to investors.
The assets inside a synthetic CDO aren’t physical
debt securities but rather derivatives, which in turn reference other investments such
as loans or corporate debt.
During the financial crisis,
synthetic CDOs became a symbol of the financial excesses of
the era. Labeled an “atomic
bomb” in the movie “The Big
Short,” they ultimately were
the vehicle that spread the
risks from the mortgage market throughout the financial
system.
Synthetic CDOs crammed
with exposure to subprime
mortgages—or even other
CDOs—are long gone. The
ones that remain contain
Please see CDO page B2
Even energy-industry veterans who have experienced major storms were flummoxed.
“There should be a stronger
word than unprecedented,”
said Tom Kloza of the Oil Price
Information Service.
Mr. Kloza said wholesale
gasoline prices are rising 5 to
10 cents a gallon throughout
the Southeast and other markets that are supplied by Gulf
Coast refiners. Consumers will
likely pay higher prices at the
pump as a result.
The reduced refining capacity is also expected to hit U.S.
crude demand. Light, sweet
crude for October delivery fell
to a one-month low in its biggest one-day decline in nearly
two months, closing down
$1.30, or 2.7%, at $46.57 a barrel.
—Sarah McFarlane
and Dan Molinski
contributed to this article.
well as updates to the two
iPhone 7 models that started
selling last year.
Analysts had widely reported
in recent months that production glitches on the newest
iPhone could cause it to be delayed. If the event proceeds on
Sept. 12, its timing would be
roughly consistent with iPhone
launches in previous years, reassuring investors and customers that the device is on track.
Still, it remains to be seen if
production shortfalls like those
that constrained supplies of the
iPhone 6 will crimp sales of the
latest handsets. Apple typically
begins selling new iPhones
about 10 days after unveiling
them.
In the past two years it has
used San Francisco’s Bill Graham Civic Auditorium, but people close to the company say it
is aiming to use the 1,000-seat
Steve Jobs Theater on its new
headquarters campus. The new
headquarters, however, aren’t
finished, and the construction
timetable could affect the timing or location of the event,
those people said. Apple declined to comment. It often
keeps secret the timing and
other information about such
events until close to the date.
Apple’s announcement is
scheduled to happen a week after sales start in the U.S. for
Samsung Electronics Co.’s Galaxy Note 8. The South Korean
company’s flagship smartphone
features a new dual-lens camera similar to the iPhone 7 and
one of the largest smartphone
screens on the market. Samsung hopes the device wins
over some iPhone owners.
Apple has increased production in recent weeks of the new
showcase iPhone and is poised
to expand manufacturing from
one plant in China to others, according to people familiar with
the process. The expansion
bodes well for the company’s
efforts to meet sales demand
for the device during the holiday shopping season, one of the
people said.
Consumer demand for a new
Please see IPHONE page B4
services after shoppers purchase the gadgets on Amazon.
The Seattle-based company
launched the service in its
home market in July 2016 and
has since expanded to six
other cities. It has job listings
for technicians in additional
markets, such as Chicago and
Hoboken, N.J.
Rohan Joseph recently
spent an hour walking room to
room in his Seattle suburb
home with an Amazon technician, discussing everything
from smart light switches to
locks. He already has a few
Echo Dot speakers and an Echo
Show, and was curious to see
what else Amazon would recommend. “We’re about to have
our first kid, so there were a
couple things related to the
nursery,” he said.
Mr. Joseph said he hasn’t
yet acted on any of the recommendations—but many are
now on his wish list. He didn’t
feel any pressure to buy.
“That’s what I liked about it,”
Please see HOME page B4
For its new CEO, Uber
Technologies Inc.’s board has
chosen a low-key executive
with a steady hand and a track
record running a scandal-free,
profitable company—a contrast to the man he is tapped
to replace.
Uber’s board voted Sunday
to hire Dara Khosrowshahi, the
longtime chief executive of Expedia Inc., who is lesser
known than the candidates he
beat out, General Electric Co.
Chairman Jeff Immelt and
Hewlett Packard Enterprise
Co. chief Meg Whitman.
Mr. Khosrowshahi, a veteran CEO who has a background in finance, in many
ways is the antithesis of Travis Kalanick, a trained engineer and serial tech entrepreneur. Unlike Uber’s pugnacious
and volatile former CEO, Mr.
Khosrowshahi has a reputation
for being gregarious and evenkeeled.
“He’s no nonsense, but a
very likable guy, not gruff,”
said Rich Barton, the founder
of Expedia and a venture capitalist. “He’s good at the management jujitsu of making his
idea seem like it’s yours,
which builds loyalty.”
At the same time, according
to executives who have
worked with him, Mr. Khosrowshahi has experience dealing with strong and sometimes conflicting personalities
on his board, which could help
him with his biggest immediate challenge: working with an
Uber board riven by animosity
and legal disputes.
If he accepts Uber’s job, Mr.
Khosrowshahi will need to
work closely with the eightmember board to fix a host of
Please see UBER page B2
INSIDE
HONG KONG FLOOR TRADERS
MAKE A LAST STAND
MARKETS, B11
B2 | Tuesday, August 29, 2017
INDEX TO BUSINESSES
A
B
Benchmark..................B2
Best Buy ..................... B1
Birchbox.......................B5
BlackRock Fund
Advisors....................B5
BMC Software............A5
BNP Paribas................B2
Brown & Brown ........ B11
C-E
Capital One
Financial ................ B10
CBS..............................B3
Chesapeake Energy .. B12
Citigroup......................B2
ConocoPhillips.............A5
Estee Lauder...............B5
Expedia ................ B1,B12
Exxon Mobil................B1
F-G
Finish Line .................. B5
Fitbit............................B4
Foot Locker ................. B5
Fosun International..B10
Gilead Sciences...A1,B12
Glassdoor .................... B5
Goldman Sachs Group B2
H-I
Helmerich & Payne...B12
HollyFrontier.............B11
Hong Kong Exchanges &
Clearing...................B11
IAC/InterActiveCorp
............................. B2,B12
J-K
J.P. Morgan Chase......B2
Kite Pharma ........ A1,B12
Kroger..........................A5
M-N
Marathon Petroleum B11
Netflix.........................B5
P-R
PBF Energy ............... B11
Progressive ............... B11
Range Resources......B12
S
Samsung Electronics..B4
Santander Consumer
USA Holdings ......... B10
Societe Generale.........B2
Sports Direct
International.............B5
State Farm................B11
T
Ten Network HoldingsB3
Travelers............B11,B12
TripAdvisor..................B2
Trivago.......................B12
Twitter ........................ B5
U-V
Uber.................. B1,B12
Valero Energy ........... B11
Volkswagen.................B2
W-X
Wanda Group............B10
Waste Management...A5
Wells Fargo...............B10
Williams......................B5
WPP.............................B3
XL Group...................B11
INDEX TO PEOPLE
A
H
Agbo-Bloua, Kokou.....B2
Armstrong, Alan.........B5
Huffington, Arianna...B2
B
Benigno, Mark ............ B1
Blake, John ............... B12
C
Champion, Renaud......B2
Chandler, John............B5
D
DeLongchamps, Pete..A5
Diller, Barry.................B2
Dunn, Micheal.............B5
G
Goebel, Wendelin........B2
Gordon, Bruce.............B3
Greenspan, Elyse......B11
K
Kalanick, Travis...........B1
Kaufer, Stephen..........B2
Khosrowshahi,
Dara..................B1,B12
Kloza, Tom .................. B1
Koessler, Peter............B2
Kun-hee, Lee...............B4
Kwon Oh-hyun............B4
Muller, Matthias.........B2
Murdoch, Lachlan ....... B3
N
Nunez, Armando.........B3
Nybo, Andy ............... B11
P
Pernias, Lionel............B2
S
M
Schot, Bram................B2
Seitz, Alexander.........B2
Shahani, Amrit ........... B2
Sorrell, Martin............B3
Stadler, Rupert...........B2
Stadlmann, Markus....B2
Strotbek, Axel.............B2
Malone, John C...........B2
Mulholland, Daniel....B11
Waggoner, Mark.........B1
L
Lauder, William P.......B5
Lee Jae-yong...............B4
W
Auto Maker Audi Names
Four New Board Members
BY MAX BERNHARD
ing. Some Audi models were
also affected.
“Audi has recently passed
through a difficult phase, but
has all the prerequisites to be
successful also in the mobility
world of tomorrow,” said Matthias Mueller, Volkswagen
chief executive and head of
Audi’s supervisory board.
Alexander Seitz succeeds
Axel Strotbek as board member for finance, information
technology and integrity.
The other new members of
Audi’s board are Bram Schot,
Wendelin Goebel and Peter
Koessler.
Volkswagen AG’s luxury car
brand, Audi AG, said on Monday it would replace four of
seven board members next
month.
As previously announced,
Rupert Stadler will stay on as
chief executive officer until
2022.
Like its parent company,
Audi has been shaken by the
crisis that erupted in 2015
when Volkswagen admitted it
had installed software in millions of vehicles that allowed
them to dodge emissions test-
CDO
rate defaults.
Many investors, though,
still view the products as unnecessarily complex and are
concerned they may be hard
to offload when markets get
choppy—as they did in the
last crisis.
“We don’t see that demand
from our clients and we
wouldn’t recommend it,” said
Markus Stadlmann, chief investment officer at Lloyds Private Banking, citing concerns
over the products’ lack of
transparency and lack of liquidity, meaning it could be
hard to exit from a position
when needed.
The return of synthetic
CDOs could present other
risks. Even if banks are currently less willing to lend
money to help clients juice returns, credit-default swaps
can be very leveraged, potentially allowing investors to
make outsize bets.
Structured products accounted for nearly all the $2.6
billion year-over-year growth
in trading-division revenue at
the top 12 global investment
banks in the first quarter, according to Amrit Shahani, research director at financial
consultancy Coalition.
“There has been an uptick
in interest in any kind of
yield-enhancement structure,”
said Kokou Agbo-Bloua, a
managing director in Société
Générale SA’s investment
bank.
The fastest growth this
year has come in credit—the
epicenter of the 2007-08 crisis. The top 12 global investment banks had around $1.5
billion in revenue in structured credit in the first quarter, according to Coalition,
Continued from the prior page
credit-default swaps referencing a range of European and
U.S. companies, effectively allowing investors to bet
whether corporate defaults
will pick up.
Desperate for something
Many view CDOs as
too complex and are
concerned they may
be hard to offload.
that pays better than basic
government bonds, insurance
companies, asset managers
and affluent investors are
scooping up investments like
synthetic CDOs, bankers say,
which had largely become the
preserve of hedge funds after
2008. Investment banks,
which create and sell CDOs,
are happy to oblige. Placid
markets have made trading
revenue weak this year, and
such structured products are
an increasingly important
business line.
Synthetic CDOs got “bad
press,” said Renaud Champion,
head of credit strategies at
Paris-based hedge fund La
Française Investment Solutions. But “that market has
never ceased to fully function,” he added.
These days, Mr. Champion
still trades synthetic CDOs, receiving a stream of income for
effectively insuring against a
sharp rise in European corpo-
BUSINESS NEWS
UBER
Continued from the prior page
problems, including replenishing Uber’s depleted executive
ranks and implementing
changes mandated by the
board to address allegations
from a former female engineer
that the company ignored
complaints of sexism and sexual harassment. He will also
need to shore up Uber’s finances; the company lost over
$3 billion last year.
Mr. Khosrowshahi, 48 years
old, couldn’t be reached for
comment. He would inherit a
board divided by a heated legal dispute between Benchmark Capital and former Uber
chief Mr. Kalanick, and the
public airing of factions that
emerged during the CEO hunt,
particularly over the candidacy of Ms. Whitman.
Some directors privately
groused that Benchmark,
which owns 13% of the company and holds a seat on the
board, pushed for Ms. Whitman over other candidates
even though she repeatedly
denied that she was considering the job. Benchmark has denied it advocated for Ms.
Whitman, who despite her
public denials met with board
members over the weekend to
present her vision for leading
the company. She didn’t respond to requests for comment.
Mr. Immelt removed himself from consideration on
Sunday, after observing disorder and divisions among directors, according to a person familiar with the matter. Others
said Mr. Immelt was simply
saving face after realizing he
didn’t have the votes he
needed to win. Mr. Immelt
didn’t respond to requests for
comment.
The board on Sunday unanimously voted for Mr. Khosrowshahi, according to people
familiar with the matter.
Mr. Khosrowshahi would
have to manage the presence
of Mr. Kalanick, who was
known for his tight grip on
Uber.
Several of the company’s
directors have been sniping in
private over the past few
more than doubling since the
first quarter of 2016. Structured equities are largest
overall, a business dominated
by sales of derivatives linked
to moves in stock prices, with
revenue of $5 billion in the
first quarter.
“The low-yield environment
hurts,” said Lionel Pernias, a
credit-fund manager at AXA
Investment Managers. “So
there are a lot of asset owners
looking at structured credit.”
These days, the typical synthetic CDO involves a portfolio
of credit-default swaps on a
range of companies. The portfolio is sliced into tranches,
and investors receive payouts
based on the performance of
the swaps. Those investors
ZUMA PRESS
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.
Allstate ..................... B11
Alphabet......................B2
Amazon.com..........B1,B3
Andeavor...................B11
Apple......................B1,B4
Aspen Insurance
Holdings..................B11
aTyr Pharma..............B12
Audi.............................B2
Axis Capital
Holdings.................B11
THE WALL STREET JOURNAL.
* ***
Dara Khosrowshahi will need to work closely with the board to fix some pressing problems.
weeks over the alleged ambition of Mr. Kalanick to continue to exert control over the
direction of the company he
co-founded eight years ago.
Some investors aligned
with Benchmark said Mr. Kalanick and another board
member, media magnate Arianna Huffington, conspired to
torpedo early CEO candidates
so that Mr. Kalanick could ultimately return to the job. People familiar with Mr. Kalanick’s thinking say he never
intended to return as CEO.
Mr. Kalanick also is defending against a lawsuit from
Benchmark, the firm that led
an investor coup to pressure
him to resign in June. Benchmark sued Mr. Kalanick over
what it alleges is his reneging
on a contract to return to
board oversight the three
seats he controls, and is seeking to remove him as a director. The venture firm has said
Mr. Kalanick knew of wrongdoing at Uber, including the
basis for a lawsuit from Alphabet Inc. over allegedly stolen trade secrets.
Just one day after Uber selected the new CEO, its former
leader filed court documents as
part of his defense against
Benchmark, suggesting the case
could be a distraction for some
time to come. Mr. Kalanick argued again for the suit to be
owning lower tranches tend to
get paid more but are subject
to higher losses if the swaps
sour.
Synthetic
CDOs
have
evolved since the crisis, bankers say. For instance, most are
shorter-dated, running up to
around two to three years
rather than seven to 10 years.
Some banks will only slice and
dice standardized CDS indexes
that trade frequently in the
market rather than craft tailored baskets of credits.
There are also fewer banks
involved in arranging these
trades. Those active include
BNP Paribas SA, Citigroup
Inc., Goldman Sachs Group
Inc., J.P. Morgan Chase & Co.
and Société Générale SA.
settled in private arbitration,
saying a public trial would “expose the company to significant
and unnecessary harm for no
reason other than Benchmark’s
desire to use this forum to publicly slander Mr. Kalanick.”
At Expedia, Mr. Khosrowshahi navigated a contentious
fight between two board members and dominant personalities: Barry Diller, the chairman
of Expedia and the company it
spun off from in 2005, IAC/InterActive Corp, and John Malone, the chairman of Liberty
Interactive Corp.
Mr. Malone’s company, called
Liberty Media at the time, sued
IAC in 2008 after Mr. Diller announced his plan to split IAC
into five companies. Liberty Media, IAC’s biggest shareholder,
argued that the move was designed to dilute its voting
power. The battle grew increasingly acrimonious between Mr.
Diller and Mr. Malone until
2010, when IAC bought out Liberty Media’s stake.
Mr. Diller, who is also chairman of IAC, effectively controls Expedia, though Liberty’s
affiliates still hold shares in
the company and are represented on its board. On Monday, he sent a memo to Expedia employees saying Mr.
Khosrowshahi will probably
accept the job.
Mr. Khosrowshahi didn’t get
in the middle of the dispute between Messrs. Diller and Malone but has remained on good
terms with both moguls, said
Altimeter Capital Chief Executive Brad Gerstner, an Expedia
investor who has known the
company chief for nearly two
decades. “He’s extraordinarily
familiar with boardrooms,” Mr.
Gerstner said.
But, he adds, Mr. Khosrowshahi isn’t a pushover when it
comes to negotiating for Mr.
Diller. Nor has the executive
pulled his punches in criticizing
President Donald Trump, even
by Silicon Valley standards. He
ended a earnings call shortly after Mr. Trump’s inauguration by
thanking employees for their
hard work in 2016, adding
“hopefully we will all be alive to
see the end of 2017.”
While trying to restore order on the board, Mr. Khosrowshahi will also need to recruit chiefs of finance,
operations and marketing,
among other top jobs.
At Expedia, Mr. Khosrowshahi manages an array of semiautonomous chief executives
who run Expedia’s various travel
brands, which could help him
attract talent to fill Uber’s vacant senior positions. TripAdvisor Inc. Chief Executive Stephen
Kaufer said the extra leeway
helped the Expedia CEO gain his
executives’ trust.
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The amount of European collateralized debt obligations outstanding
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THE WALL STREET JOURNAL.
BUSINESS NEWS
CBS Plans
To Acquire
Australian
Network
Modest Cuts
Amazon is lowering prices at Whole Foods following its acquisition of
the organic grocer, hoping to boost sales, but it still can't beat nearby
stores on some items.
Whole Foods
$0
1
2
3
4
5
6
7
8
$0
1
2
3
4
5
6
7
8
Organic
bananas
by the lb.
SARAH NASSAUER/THE WALL STREET JOURNAL
BY MIKE CHERNEY
Customers at Whole Foods are generally more focused on quality and are less price conscious.
Organic eggs
(dozen)
Organic kale
(5oz box)
Organic milk
(gallon)*
*Previous price not available; national brand
Note: Whole Foods Chicago-location prices. Mariano's is owned by Kroger.
Source: WSJ analysis of item prices
THE WALL STREET JOURNAL.
Amazon Acts First on Food Prices
With Whole Foods in
hand, online giant
veers from matching
strategy, shakes peers
BY LAURA STEVENS
AND HEATHER HADDON
Amazon.com Inc. on Monday put itself in the unusual
position of being a first mover
on price cuts when it slashed
the sticker price on more than
100 items at Whole Foods
Market Inc., many by more
than 30%.
Amazon typically relies on
algorithms that scrape competitors’ prices before automatically matching or narrowly undercutting them on
its website. It focuses on items
that are most popular on the
site and that drive traffic, according to former executives
in Amazon’s retail divisions.
That gives the retail giant a
reputation for having the lowest prices.
With Whole Foods, which it
officially acquired Monday for
about $13.5 billion, Amazon
has broken with its reactive
approach. For example, a
dozen organic eggs was for
sale at a Chicago store for
$3.99, compared with $4.39
the day before and lower than
the $4.19 that Mariano’s, a division of Kroger’s Co., was
charging at a nearby store.
The price cuts could partly
be a marketing stunt to mark
Amazon’s ownership of the
chain. But they also shed light
on how the company is adapting its strategy to seek success
in the physical retail world it
has long disrupted.
The cuts could improve
Whole Foods’ reputation for
high prices and lure more
shoppers into the chain’s 470
stores. They also offer a first
sign of Amazon’s intent to apply order to Whole Foods’ decentralized structure. Prices
had varied across the grocer’s
12 regions, but Monday’s reductions brought those of the
selected items in line nationally.
“This will make me come
more,” said Jen Harris, 33
years old, who skipped her
Sunday shopping trip in favor
of stopping by Monday morning, looking for cheaper prices
on staples like chicken and
fish. “I feel like Amazon is
great for customers.”
The occupational therapist
from Chicago typically shops
for milk, eggs and snacks at
Trader Joe’s, Costco Wholesale Corp. or Albertson Cos.’s
Jewel-Osco banner because
they are cheaper.
Amazon’s strategy of being
a price follower, not a price
leader, has helped make Amazon a major player in everything from books to apparel.
“They can be a cent below
the other competitors, they
don’t need to go all the way
down,” said Guru Hariharan,
chief executive of retail technology company Boomerang
Commerce and a former Amazon manager.
Grocery shoppers typically
enter a store with a set list of
items but often make impulse
purchases once there. Customers at Whole Foods in particular are generally more focused
on quality and are less price
conscious, making it tougher
for Amazon to predict how
discounting products may affect traffic. Whole Foods, for
example, began cutting prices
two years ago, but the cuts
didn’t reinvigorate sluggish
sales growth.
Whole Foods has some way
to go to match other grocers.
Analysts estimate that prices
before the Amazon takeover
were roughly 15% higher than
conventional competitors for
similar items.
“Amazon cutting prices at
Whole Foods likely doesn’t
mean undercutting other grocers, but rather bringing
prices more in line with average market prices,” said Forrester retail analyst Brendan
Witcher.
For example, Amazon cut
the price of Whole Foods’ private-label creamy and crunchy
almond butters to $6.99 from
$7.99, matching Trader Joe’s.
A Whole Foods spokeswoman said that many store
items couldn’t be directly
compared with competitors
because the chain has higher
quality and ethical standards.
The price cuts and promotions
will continue in the weeks to
come as the merger progresses, she said.
“This is just the beginning,”
she said.
Amazon declined to comment on its pricing policies,
but the company has previously said it finds the lowest
prices and meets or beats
them every day.
Investor concern that Amazon’s price cuts at Whole
Foods will trigger a price war
led to a stock selloff among
traditional grocers Monday,
continuing last week’s slide.
Sprouts Farmers Market Inc.’s
stock tumbled 10%, while Natural Grocers by Vitamin Cottage Inc. was down by more
than 2%. Kroger, the largest
U.S. grocery chain by stores
and revenue, slipped 1.4% before largely recovering.
Ad Groups Try to Simplify in Complex Times
BY ALEXANDRA BRUELL
Around this time last year,
WPP PLC Chief Executive
Martin Sorrell addressed more
than 100 top executives from
the holding company’s ad
agencies at a senior leadership meeting. He pointed to a
screen that displayed the logos of McDonald’s, AT&T,
Procter & Gamble and Volkswagen.
What do these companies
have in common, he asked.
The answer: Those were all
accounts WPP had lost. He
said WPP, home to agencies
like J. Walter Thompson, Grey
Advertising and Mindshare,
would need to simplify its unwieldy structure for clients
that want more integration of
functions like media planning,
data analytics and creative
advertising, according to
agency executives in attendance.
WPP last week reported
weaker-than-expected revenue
growth in its latest quarter
and reduced its forecast for
2017, fueling a stock selloff. A
major point of focus were the
cutbacks in spending by consumer products and packaged
goods companies and the
business headwinds those
firms are facing. But agency
holding companies are also
under pressure to revamp an
organizational structure that
has gone out of style.
On the company’s earnings
call, Mr. Sorrell said, “Ensuring our people work seamlessly together through client
teams and country and subregional managers to provide
integrated benefits for clients
is absolutely essential.”
WPP for years has been
pulling resources from individual shops to create dedicated agencies for specific clients. Mr. Sorrell uses the term
“horizontality” to describe the
approach.
Big ad firms likes WPP,
Publicis Groupe SA and Omnicom Group Inc. have spent the
past decade acquiring assets
to help them adapt to the online ad business.
But at the same time, their
existing roster of agencies, assembled over many years,
have developed their own dig-
Ad executives will find it
challenging to transform their
cultures.
Clients want the flexibility
to pull in resources from various agency groups, but agencies, many of which house big
egos, have been incentivized
to generate revenue for their
specific shops and have
fiercely competed with sister
agencies for decades.
Still, after Mr. Sorrell’s remarks at the leadership event
last year, the remit was clear:
get past your differences and
work together. Clients want
integration and simplicity.
The reshuffling is also
likely to give data and analytics specialists more influence,
potentially giving media-buying agencies a leg up over creative shops, another source of
tension.
“I think the future model is
going to be a reconstituted
agency a la the days of ‘Mad
Men.’ The difference is Don
Draper will report to Harry
Crane, not the other way
around,” said Lou Paskalis, a
media executive at Bank of
America.
ERIC GAILLARD/REUTERS
SYDNEY—U.S. media company CBS Corp. plans to acquire Australian broadcaster
Ten Network Holdings Ltd.,
beating out a bid from Australian media moguls Bruce Gordon and Lachlan Murdoch for
the company after it went into
receivership.
CBS’s bid was favored by
receivers for Ten Network, one
of Australia’s three main
broadcasters, over a proposal
from Messrs. Gordon and Murdoch, who wanted to run the
broadcaster as a joint venture,
people familiar with the deal
said. Mr. Murdoch is co-chairman of News Corp, which
owns Wall Street Journal publisher Dow Jones, while Mr.
Gordon controls a company
that owns broadcasting licenses across Australia.
Financial terms for the purchase weren’t disclosed, but
analysts said CBS likely got a
favorable deal given the Australian broadcaster in June
went into voluntary administration, a process similar to
bankruptcy in the U.S. CBS,
Ten Network’s largest unsecured creditor, supplies content to Ten Network and owns
a stake in Ten Network’s digital-television channel, Eleven.
Aside from boosting its international-distribution footprint, the deal for Ten Network would give Manhattanbased CBS an existing
platform to help it roll out its
CBS All Access subscription
service in Australia. CBS is
looking to expand the service
in global markets, and this
month said it would launch it
in Canada in the first half of
next year. No date has been
set for an Australia launch.
“This acquisition not only
presents CBS with considerable broadcasting opportunities in Australia, but also allows for further multiplatform
distribution and growth,” said
Armando Nunez, president
and chief executive at CBS
Studios International, in a
written statement.
Representatives for Messrs.
Murdoch and Gordon declined
to discuss what next steps the
pair might take.
The proposed deal comes as
traditional broadcasters face
an audience migration to online
streaming
services,
threatening advertising revenue. For the quarter ended in
June, CBS reported betterthan-expected earnings as it
received a boost from new initiatives such as the Showtime
streaming service.
The deal still needs to win
approval from Ten Network
creditors, as well as from Australia’s Foreign Investment Review Board.
On Monday, Australian
Prime Minister Malcolm Turnbull voiced support for the
transaction. A deal “would be
in the interests of the network, its employees and, of
course, its viewers,” Mr. Turnbull said of the CBS offer.
—Rob Taylor in Canberra
contributed to this article.
Mariano’s
Whole Foods’ previous price
Martin Sorrell’s WPP reported weaker-than-expected revenue.
ital skills out of survival instinct. That has blurred the
lines, creating overlap and
confusion for clients who are
coming to the agencies for
clarity about the digital ad
world.
The holding companies’
complex structures have also
impeded their ability to move
quickly at a time when clients
are demanding more real-time
digital marketing responses to
daily events, particularly on
social media.
Typically, marketers have
separate contracts with various agencies that offer many
of the same types of services.
Media and digital marketing
agencies both claim to be able
to create and buy videos for
social platforms, for example.
What they want is to have
a single business relationship
that gives them access to creative, technology and media
expertise without having to
potentially pay for overlapping services.
MEET THE SECURITY TEAM OF THE FUTURE
Learn more about the future of security and see
how you can become part of a brighter tomorrow
www.knightscope.com
THE WALL STREET JOURNAL.
B4 | Tuesday, August 29, 2017
TECHNOLOGY
WSJ.com/Tech
Samsung Asks Staff to Carry On
In memo, a co-CEO
urges focus on work
after heir’s conviction;
chip investment is set
SEOUL—Samsung
Electronics Co. urged its employees to stay focused on their
work after last week’s conviction of the company’s de facto
leader, and punctuated that
business-as-usual appeal with
a fresh $2.3 billion investment
in semiconductors.
The dual moves on Monday
appeared intended to send a
message of steadiness and
continuity as Samsung, one of
the world’s biggest technology
companies, navigates a precarious period.
The Korean-language message from a Samsung Electronics co-chief executive,
Kwon Oh-hyun, urged employees to continue to work hard
and not be distracted.
It came just three days after a Seoul court sentenced
Lee Jae-yong, the company’s
vice chairman and the Samsung heir, to five years in
prison for bribing South Korea’s former president.
The verdict has rocked
South Korea, reflecting a new
rigor in scrutinizing the traditionally close ties between
government and the powerful
family-run
conglomerates
known as chaebols.
On Monday, Mr. Lee’s lawyers filed an appeal contesting
Friday’s court verdict.
The brief memo from Mr.
Kwon was the first companywide message since Mr. Lee’s
conviction.
In the memo, which was
posted on the company’s internal web bulletin board and
reviewed by The Wall Street
Journal, Mr. Kwon described
Mr. Lee’s imprisonment as an
SEONGJOON CHO/BLOOMBERG NEWS
BY EUN-YOUNG JEONG
A Samsung employee, center, demonstrated a Galaxy Note 8 smartphone to a customer at a company store in Seoul last week.
“unprecedented challenge” for
Samsung and encouraged employees to continue working
hard as they wait for “the
truth to come to light.”
Mr. Kwon seemed to do just
that hours later, when Samsung said its management
committee had approved a
$2.3 billion investment to
boost its NAND memory-chip
facilities in Xi’an, China, part
of a new, three-year $7 billion
investment plan, according to
a filing with regulators. NAND
chips are memory chips that
dictate the amount of data
that can be stored in digital
devices.
Mr. Kwon, one of three cochief executives at Samsung
Electronics, has been a steadying force behind the scenes
since Mr. Lee was detained in
February, according to people
familiar with the matter.
by its three co-CEOs, would
endeavor to carry out operations without disruptions from
the continuing legal matters.
Mr. Lee was found guilty on
Friday of offering $7.9 million
The company, the world’s
largest maker of smartphones,
memory chips and television
sets, has continued to fare
well even amid the continuing
legal process. Shares in Samsung are trading near a record
high after the company recently posted a record quarterly profit.
But Mr. Lee, the 49-year-old
only son of Samsung Chairman
Lee Kun-hee, is seen as playing a critical role in approving
Samsung’s biggest investments and deals.
Monday’s announcement
seemed designed to send a
sign that the company will
continue to conduct business
as usual despite Mr. Lee’s absence.
A Samsung spokeswoman
declined to comment on Mr.
Kwon’s internal memo, but
said Samsung Electronics, led
Co-Chief
Executive
Kwon Oh-hyun
described an
‘unprecedented
challenge’ for
the company.
as bribes to entities linked to
Choi Soon-sil, a friend of
South Korea’s former President Park Geun-hye. In return
for the financial contribution,
the court found that Ms. Choi
colluded with Ms. Park to provide government backing for
business deals relating to Mr.
Lee’s succession over Samsung. Along with bribery, Mr.
Lee was also convicted of embezzlement, hiding assets
abroad, concealing criminal
profits and perjury.
Ms. Park and Ms. Choi have
both denied wrongdoing and
are facing charges in a separate trial.
Investors reacted negatively
to Mr. Lee’s sentencing. Samsung Electronics’ shares fell
2% in Monday trading, far
steeper than the broader
benchmark’s 0.3% decline.
Shares in two Samsung affiliates considered to be important pieces of Mr. Lee’s
planned succession process, de
facto holding company Samsung C&T Corp. and Samsung
Life Insurance Co., fell 3.4%
and 2.9% respectively.
—Timothy W. Martin
contributed to this article.
Fitbit Takes Aim at Apple With New Smartwatch
The Ionic will hit stores well ahead of the holiday-shopping season.
peal will help position it as
an essential product.
The Ionic is scheduled to
hit stores in October ahead of
the critical holiday season.
Its fate is pivotal to Fitbit,
which last year suffered a
lackluster holiday season,
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ten Fitbit’s smartwatch product development and work involving third-party apps.
Ionic users will be able to
wear the watch during swims,
load it with music if they have
a Pandora account, use it to
pay for an energy drink after a
run and track distance and location with GPS. The features
go beyond the boilerplate
found on Fitbit’s other devices, such as step count,
heart-rate monitoring, and
sleep tracking, Fitbit said. The
watch will have a battery life
of up to four days on a single
charge during typical day-today use.
But the Ionic won’t be LTE
enabled, Fitbit said. The Wall
Street Journal reported that
Apple’s next watch, slated for
release this fall, will be capable of connecting to cellular
networks, allowing users to
send and receive texts without
being tethered to the iPhone.
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Analysts say that the
watch’s success will hinge on
whether Fitbit is able to leverage its expertise in health and
fitness. Fitbit is “playing to
their wheelhouse,” said Ramon
Llamas, research manager of
wearables and mobile phones
at International Data Corp., a
research firm.
Consumers said that health
and fitness apps were the
most desirable feature in their
smartwatches, according to a
survey conducted by IDC late
last year.
But competitors such as
Apple and Samsung Electronics Co. Ltd. have released
watches with a variety of features, and “not everybody
wants or is using those features,” said Mr. Llamas.
Last year, Fitbit released its
unofficial foray into smartwatches, the Blaze, which retails for about $150, but it is
not connected to third-party
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Continued from page B1
said the 34-year-old CrossFit
studio owner. “He wasn’t trying to sell me anything.”
Best Buy, which had revenue
of $39.4 billion last year, controls about 29% of the U.S.
market in consumer electronics, followed by Wal-Mart
Stores Inc., with 14%, and Amazon, with 11.2%, according to
research firm TraQline.
Best Buy’s modest growth
over the past five years has
stood apart in a retail industry
that has struggled with declining foot traffic and a glut of
stores. The electronics giant,
whose shares are up 45% so
far this year, is slated to report
second-quarter results on
Tuesday.
Unlike its Geek Squad workers who fix gadgets, Best Buy’s
in-home advisers are traveling
sales consultants who are paid
a salary or on an hourly basis,
not commissions. Based on the
customer’s needs, they provide
product
recommendations,
ranging from HP and Apple
laptops to Amazon Echo and
Google Home devices. The
prices cited are the same as in
the company’s store or website.
“They get my cellphone
number and can call me for
any of their needs,” said Jeremiah Goldsmith, 40, an inhome adviser in Austin, Texas.
After a consultation, Mr. Gold-
MATTHEW MAHON FOR THE WALL STREET JOURNAL
Fitbit Inc. unveiled its longawaited smartwatch on Monday, elbowing into a crowded
market to restart its growth.
Fitbit’s smartwatch, called
the Ionic, priced at $299.95,
will compete with incumbents such as Apple Inc.’s
Apple Watch, which starts at
$269.
And while Fitbit is touting
the health and fitness features
on its device, building on its
expertise in fitness trackers,
the Ionic lacks some of the
technological capabilities of an
expected revamp of Apple
Watch.
The smartwatch is going
to “be a big part of our
growth story,” said Fitbit
Chief Executive James Park.
He added that the device’s
ability to marry medicalgrade capabilities with the
company’s mass-market ap-
FITBIT
BY YOREE KOH
Mr. Goldsmith makes repeat home visits, free of charge.
smith arranges everything
from Geek Squad repairs to installations and deliveries. He
also makes repeat home visits,
free of charge.
At Amazon, the in-home appointments are booked via its
website, and a different employee may make follow-up
visits, though armed with data
collected from previous consultations.
Amazon, like Best Buy,
charges for installations. For
example, installing a smart
doorbell costs around $99.
“Amazon Smart Home Services isn’t just about buying or
even installing smart home
products, it’s about educating
customers on how it all works
and customizing the products,”
said an Amazon spokesman.
To free up costs for new
services, Best Buy has been
outsourcing some tech support
jobs at its Geek Squad unit to
Accenture, which uses cheaper
labor in the Philippines. Last
Amazon, like Best
Buy, charges for
at-home installations
of hardware.
month, the retail chain eliminated about 400 U.S. Geek
Squad positions for online and
phone tech support.
The company said it has
about 1,000 job openings and
IPHONE
Continued from page B1
iPhone appears strong. In a recent survey, 52% of people planning to buy a smartphone in the
next 90 days said they would
buy an iPhone, the highest level
since 2010, according to 451 Research, a market-research firm.
Expectations for strong sales
of the new iPhones have sent
Apple’s stock to record levels,
increasing its market capitalization by 36% to $825.71 billion
since the start of the year. The
company said this month it expects to generate $49 billion to
$52 billion in sales during the
September-ending quarter, a
figure Nomura Instinet analysts
say suggests Apple will ship
about 50 million iPhones in the
quarter, a 10% increase from
the same time last year. Other
analysts estimate Apple will
ship fewer iPhones, even factoring in a September product
launch.
Apple also is expected to unveil a new Apple Watch with an
LTE cellular chip that allows it
to pull data directly from wireless services, easing the device’s current dependency on
the iPhone to transmit emails,
texts and calls.
The new iPhone is expected
to feature facial-recognition
technology that allows users to
unlock the device, and to have
Sales expectations
for the new iPhones
have sent Apple’s
stock to record levels.
augmented-reality capabilities,
according to Carolina Milanesi,
an analyst with market-research firm Creative Strategies.
“There’s going to be enough in
this phone to lay the foundation
for the future of computing as
Apple thinks about it,” said Ms.
Milanesi, who said previous
iPhone updates were more “iterative.”
She said the facial-recognition feature will make Apple
Pay faster, while augmented-reality apps will create opportunities to use the device in new
ways such as gaming or decorating a home.
The iPhone’s success will
hinge largely on its performance in China, said Katy Huberty, a Morgan Stanley analyst. Apple has been losing
market share in China to local,
low-price rivals like Huawei
Technologies Co. and BBK Electronics Corp. Sales declined
16% in Greater China, which includes Hong Kong and Taiwan,
in the 12 months through June.
To boost sales, though, Apple will have to persuade consumers to pay more for the new
high-end model, which analysts
expect to cost as much as
$1,000, with higher-memory
versions priced at as much as
$1,400. That starting price
would be more than 50% more
than the base price of the current iPhone 7.
—Joann S. Lublin
contributed to this article.
encouraged laid-off workers to
apply. “Using that highly
skilled labor in people’s homes
and in our stores, directly interacting with customers,
seems like the very best way
we could humanly use that asset,“ said Best Buy finance
chief Corie Barry.
Increasing face-to-face interactions in the home could
help with sales of extended
warranties. Warranties accounted for nearly $900 million of Best Buy’s $40 billion
annual sales, but analysts say
the high-margin offering made
up a significant share of the
company’s profit, which was
about $1.2 billion last year.
Amazon, with its Echo devices, is vying for market share
with Alphabet Inc.’s Google
and Apple Inc., both of which
have been working on their
own voice assistants for the
home. Google and Apple,
which will begin shipping its
HomePod in December, don’t
currently deploy in-home
salespeople.
Best Buy is hoping its
brand-agnostic approach will
give it a leg up when it comes
to consultations. “Despite what
the vendors might want,
there’s no customer who has
only one brand in the home,”
said Mr. Joly, the retailer’s
CEO.
“This is not a zero-sum
game between Amazon and
Best Buy,” said Mr. Joly.
“There’s room, frankly, for several players.”
THE WALL STREET JOURNAL.
Tuesday, August 29, 2017 | B5
* *
BUSINESS NEWS
Stem-Cell
Treatment
Monitoring
To Increase
Unlimited Vacation Time Is a Lot of Work
Employees are often hesitant to take advantage of company policies; the ‘anxiety’ of two weeks off
The clinics offer
injections to people
suffering from a wide
range of ailments.
injected into a different area.
About 570 clinics in the U.S.
were advertising the treatments, the journal Cell Stem
Cell reported last year. Most of
those clinics aren’t selling treatments that have been proven to
work, according to Leigh
Turner, a bioethicist at the University of Minnesota who cowrote the journal report.
The proliferating business
had triggered a debate, including hearings by the FDA last
year, about whether the agency
should step in. Clinic operators
argue that the agency’s oversight of drugs doesn’t extend to
the use of a patient’s own cells.
The FDA said it seized five
vials of a smallpox vaccine
containing live and dangerous
vaccinia virus that belonged to
StemImmune Inc. of San Diego, Calif. The agency said the
vaccine was used as part of an
“unapproved” and potentially
harmful procedure at the California Stem Cell Treatment
Centers in Beverly Hills, Calif.,
and Rancho Mirage, Calif.
The FDA said the clinics were
combining the vaccine with
stem cells derived from body fat
and injecting the concoction
into the tumors of cancer patients with compromised immune systems, “for whom the
vaccine posed a potential harm.”
The agency also posted a
warning letter to U.S. Stem Cell
Clinic of Sunrise, Fla., that the
agency alleged was marketing
unapproved stem-cell treatments that weren’t made according to good manufacturing
practices. Three elderly women
lost vision after treatment at
U.S. Stem Cell Clinic, according
to media reports and an article
in the New England Journal
of Medicine earlier this year.
U.S. Stem Cell Clinic said it
followed strict standards to protect the health and safety of its
patients and to follow FDA rules.
Dr. Mark Berman, co-founder
of the California Stem Cell
Treatment Center group that
the clinics in Beverly Hills and
Rancho Mirage belong to, said
the smallpox virus was “legally
obtained” from the U.S. government for conducting research
on its use in stem-cell treatment. He said the center and its
“clinical partner” StemImmune
have told the FDA about their
research. StemImmune said it is
“fully cooperating” with the
FDA regarding development of
its stem-cell cancer treatment.
Kyle Bergman, at left, travels to lacrosse tournaments. Indrani Ray-Ghosal no longer has to choose between time at home and visits to see family in India, above.
BY FRANCESCA FONTANA
Unlimited vacation time
sounds like a great way to
encourage employees to take
time off—at first.
A small but growing number of companies including
Glassdoor Inc., Netflix Inc.
and Twitter Inc. offer employees as much paid time
off as they want. Employers
say they like the policies because they can minimize
staff burnout. It doesn’t hurt
that they can save on costs,
as the policies mean they no
longer pay employees who
leave the company for unused vacation days.
But experts say unlimited
vacation time isn’t a perfect
solution to an overworked
workforce. Employees can
become more hesitant to take
time off when they’re allowed to do it any time—and
for as long as they desire.
Kyle Bergman, who leads
merchandising for men’s
products at the online beauty
subscription company Birch-
box, has balanced his fulltime job with a spot on Israel’s national lacrosse team.
He uses his unlimited vacation time to travel to tournaments, and in July, Mr. Bergman spent 16 days in Finland
competing in the European
Box Lacrosse Championships.
Still, he says he thought
about work often and checked
his email regularly. “Stepping
out for two weeks can be
anxiety-inducing,” he says.
That is a common concern
and part of the reason American workers don’t take all of
their allotted vacation time.
More than half of workers
say their bosses are ambivalent or send mixed messages
about taking vacation, according to a 2017 survey of
more than 7,000 workers
from the U.S. Travel Association’s Project: Time Off. Last
year, the average American
worker earned 22.6 days of
vacation, but only used 16.8
days, according to the survey.
“If you’re the only one
taking every single day you
have, compared to everyone
else, it looks like you’re not
dedicated or slacking off,”
says Maura Thomas, a workplace productivity trainer.
She says giving employees
more time off doesn’t help.
Employees won’t take vacation if the company’s leadership doesn’t take time off or
if their manager’s response
to vacation requests is less
than favorable, she says.
For some workers, unlimited time off can be liberating. Before Kronos Inc., a
workforce management software firm, switched to an
unlimited policy, Indrani
Ray-Ghosal had to save up
two years’ worth of vacation
time to enjoy a lengthy visit
with her family in India. The
strategy meant the corporate
communications manager
would sacrifice time off with
her children during holidays
to collect unused days and
roll them over to the year
she planned to travel abroad.
“It was a balancing act,” Ms.
Ray-Ghosal says.
Before Kronos changed its
policy in 2016, Ms. RayGhosal took about three
weeks of vacation. Now she
takes 3½ weeks, and doesn’t
have to choose between time
with her children and visits
with her in-laws overseas.
While many employees
were happy with the change,
some were upset that they
wouldn’t receive a payout for
their unused vacation time
upon leaving the company,
says Dave Almeda, Kronos’
chief people officer.
To address those concerns,
the company told workers it
would use the money it
saved on vacation-time payouts to increase maternity
leave, introduce paternity
and adoption leave, and
boost 401(k) contributions.
“We invested in the people who chose to stay rather
than those who chose to
leave,” Mr. Almeda says.
Kronos also found that
employees took more time
off. Mr. Almeda says the average vacation usage in 2015
was just below three weeks.
In 2016, it was a little more
than 3½ weeks.
At Birchbox, employees
have had unlimited vacation
since the company was
founded in 2010, but workers
wanted more guidance.
Over time, the company
developed guidelines, requiring, for instance, two weeks’
notice for more than three
days of vacation leave. It
also asked employees not to
plan trips during busy weeks
leading up to the holiday
season, says Melissa Enbar,
vice president of people and
culture at Birchbox.
To encourage time off,
Birchbox offers all full-time
employees a mandatory
three-week vacation, called
a “tribattical,” on the anniversary of their third year
at the company. It comes
with a stipend of $750, as a
way to reward loyalty to the
company. After six years
with the company, employees get $1,500 along with
three weeks off.
Finish Line Sets Rights Plan
BY MARIA ARMENTAL
Finish Line Inc. took defensive measures to prevent a
possible takeover as the company lowered its annual financial targets and guided that it
would earn its smallest profit
since 2009 in its current fiscal
year.
Shares, already down 45%
this year, fell 24% to $7.95 in
after-hours trading Monday as
the footwear retailer said it
expects sales at stores open at
least a year to decline between
3% and 5%, compared with
previous guidance of a low single-digit percentage gain.
The Indianapolis company’s
board approved a shareholders-rights plan aimed at blocking any individual stockholder
from owning more than 12.5%
of the shares outstanding.
Sports Direct International
PLC, the British sporting gear
retailer, disclosed last week in
a securities filing it owned
7.9% of Finish Line common
stock and has an economic interest, but no voting power, in
BUSINESS WATCH
WILLIAMS COS.
Chandler Is Named
New Finance Chief
Pipeline company Williams
Cos. on Monday named John
Chandler as its new chief financial officer, succeeding Don
Chappel, who announced his retirement earlier this year.
Mr. Chandler is slated to start
his new role Sept. 5. He will receive a base salary of $525,000
and an equity award valued at
$500,000. He also will be eligible for other incentive-based
awards and benefits.
Mr. Chandler, 47 years old,
previously served as finance
chief for pipeline operator Magellan Midstream Partners LP.
He worked at Magellan entities
from 2002 to 2014.
Mr. Chandler also has been a
board member at USA Compression Partners LP, Cone Midstream Partners LP, Green Plains
Partners LP and Matrix Service
Co.
Last year, nearly half of Williams’s board members quit after a failed attempt at forcing
out the company’s chief executive, Alan Armstrong, following
the collapse of a merger deal
with Energy Transfer Equity LP.
Earlier this year, the company
added Micheal Dunn as chief operating officer.
In July, the company completed the sale of its stake of an
olefins plant in Louisiana to
Nova Chemicals Corp. for $2.1
billion as part of its plans to focus on natural gas. During a call
with analysts earlier this month,
Mr. Armstrong said the company
now stands “at around 97% of
our gross margins coming from
predictable fee-based sources
that are aligned with natural gas
volumes.”
On the company’s new finance chief, Mr. Armstrong said,
“John is a deeply experienced
chief financial officer who is
well-known in the energy markets and within Williams.”
—Ezequiel Minaya
ESTÉE LAUDER
Executives Deny
Rumors of Sale
Estée Lauder Cos. over the
weekend shot down rumors that
it is considering a sale.
In a letter to employees,
Chief Executive Fabrizio Freda
and Executive Chairman William
P. Lauder addressed news reports that the beauty giant hired
advisers to consider a sale amid
interest from consumer-products
companies.
The Lauder family owns
roughly 40% of Estée Lauder’s
shres outstanding and holds
close to 90% of the shareholders’ vote.
“There is no truth to these
rumors. The Estée Lauder Companies is not for sale,” the executives said. “The Lauder Family
and our Board place great value
in remaining independent. Our
Company is strong and we have
excellent momentum going forward.”
—Sharon Terlep
an additional 20.13% of shares.
BlackRock Fund Advisors
was the largest shareholder in
Finish Line as of June 30, reporting it held more than 11%
of the company’s shares outstanding, according to FactSet.
Finish Line didn’t identify
any shareholders but said the
plan was enacted “given the
current market conditions and
recent share accumulations.”
Finish Line’s larger peer,
Foot Locker Inc., last week reported weaker-than-expected
sales in its latest quarter.
JEFF MOREHEAD/THE CHRONICLE-TRIBUNE/AP
The Food and Drug Administration is stepping up oversight of fledgling medical
treatments that aim to harness the potential of stem
cells—as well as some businesses that the agency said
were selling unapproved and
possibly harmful treatments.
The FDA announced it was
crafting rules to govern the
development of treatments
based on the cells. The FDA
also said it was cracking down
on a company and three clinics that sold stem-cell treatments the agency said were
potentially dangerous.
The moves signaled the
FDA planned to extend its authority regulating drugs and
medical devices to the field
known as regenerative medicine, after spending years effectively watching it emerge.
“Our actions today should
also be a warning to others
who may be doing similar
harm,” FDA Commissioner
Scott Gottlieb said.
Stem cells develop into
many different kinds of cells
and naturally replace skin, gut
and bone-marrow tissues. Scientists are studying whether
stem cells could be used to
treat diseases and grow replacement organs.
Though that research is still
largely experimental, clinics
have popped up, injecting stem
cells into people dealing with
Lou Gehrig’s disease, arthritic
knees and other ailments. Often
the stem cells are extracted from
one part of the patient’s body
and after purported processing,
KYLE BERGMAN (LEFT); INDRANI RAY-GHOSAL
BY JONATHAN D. ROCKOFF
Finish Line is expecting its smallest profit since 2009.
THE WALL STREET JOURNAL.
B6 | Tuesday, August 29, 2017
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SEPTEMBER 8TH, 9TH & 10TH
FULL DAY
PREVIEW
SEPT. 7TH
OPEN TO
PUBLIC
This sale will feature the lifetime collection of acclaimed collector Vernon J. Berning – a half century treasure trove of fresh & important fine arms from around the world.Also featured
will be a host of other accomplished groupings such as the Collection of Judge Leon Ford III, the Dr. Sol Gourji Collection of Colts & Winchesters, authentic German World War II era
militaria from the Putnam Green/Sycamore Collection, the Jim Thomas Collection of military arms, the Chad Gripp Collection of exceptional pre and post-war Smith & Wesson double
action revolvers, the Doug Twiddy Collection of important 19th centuryy American arms,, and the Landmark Collection’s excitingg selection of fullyy automatic and Class III firearms.
LOT 1230
Spectacular Documented Factory Cuno
Helfricht Shop Deluxe Engraved Black
Powder Colt Etched Panel Frontier Six
Shooter Single Action Army Revolver with Factory
Documented Relief Carved Ox Head Pearl Grip
Grips
Pre-Auction Estimate $50,000-75,000
$ ,
,
LOT 3124
EExquisite,
xquisite, Important
an
nd Fresh Pair of Gold
and
and
d Silve
Sil
er M
Mounted
dP
Parisian
ii
Silver
Flint
tlock Dueling Pistols
Flintlock
Executed by the Finest French
Gunmaker o
off the 18th and 19th
Centuries: Nicolas Noel Boutet
LOT 1247
nown 4 Inch
Exceptional One of Two Known
Factory Engraved Smith & Wesson .44 Hand
ck Double Action
Ejector 1st Model Triple Lock
er
Revolver with Factory Letter
te $35,000-50,000
Pre-Auction Estimate
Pre-Auction
Pre-Au
uction Estimate
$90,000-150,000
LOT 1527
British Proofed Marlin-Rockwell Model 1918 Fully Automatic
Class III/NFA C&R Browning Automatic Rifle
Pre-Auction Estimate $27,500-42,500
OVER 100 CLASS III ARMS IN THIS AUCTION
LOT 1025
Excellent, Rare and Important Factory Engraved and
Gold-Inlaid Exhibition Winchester Deluxe Model 1886
Takedown Lever Action Short Rifle with Factory Letter
Pre-Auction Estimate $150,000-225,000
LOT 1016
Spectacular and FRESH Serial
Number 17 New Haven Arms
Company Factory Presentation Engraved
First Model Silver Plated Henry Rifle with Deluxe Stock
Pre-Auction Estimate $240,000-375,000
SUBMIT BIDS WITH RIAC VIA PHONE, FAX AND
WWW.ROCKISLANDAUCTION.COM OR BID LIVE ONLINE AT:
®
Undisputed
U
di
dW
World
ld Leader
L d ffor Q
Quality
li
Collectable and Antique Firearms
WE BUY GUNS AND ALWAYS ACCEPT QUALITY CONSIGNMENTS ONE GUN OR AN ENTIRE COLLECTION! CONTACT OUR ACQUISITIONS BY CALLING
800-238-8022
CATALOG ONLINE NOW!
WWW.ROCKISLANDAUCTION.COM
OR EMAIL GUNS@ROCKISLANDAUCTION.COM
To Order 3-Volume Set Catalog Call
17.5% Buyer's Premium, Discount offered to 15% for
pre-approved check or cash
(800) 238-8022 ($70 Inc. S&H) 7819 42nd Street West, Rock Island, IL 61201 ∙ PHONE: 309-797-1500 or 800-238-8022 ∙ FAX: 309-797-1655 ∙ EMAIL: info@rockislandauction.com ∙ Fully Licensed Class III Auctioneer
THE WALL STREET JOURNAL.
Tuesday, August 29, 2017 | B7
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
21808.40 t 5.27, or 0.02%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 20.01 20.06
P/E estimate *
18.38 17.98
Dividend yield
2.31
2.52
All-time high 22118.42, 08/07/17
Nasdaq Composite Index
Last
2444.24 s 1.19, or 0.05%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 23.53 24.71
P/E estimate *
18.73 18.59
Dividend yield
2.01
2.11
All-time high: 2480.91, 08/07/17
Last Year ago
6283.02 s 17.37, or 0.28%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 24.94
23.85
P/E estimate *
21.19
20.09
Dividend yield
1.13
1.22
All-time high: 6422.75, 07/26/17
Current divisor 0.14602128057775
22400
2500
6500
22000
2475
6400
21600
2450
6300
21200
2425
6200
20800
2400
Session high
UP
Close
t
DOWN
Session open
65-day moving average
July
May
Aug.
5900
2350
20000
June
6000
2375
20400
Session low
Bars measure the point change from session's open
May
6100
65-day moving average
Open
t
Close
65-day moving average
June
July
May
Aug.
June
July
Aug.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
Major U.S. Stock-Market Indexes
Utility Average
Total Stock Market
Barron's 400
17.9
10.4
8.5
9107.86
9156.96
23.21
0.25
9742.76
7755.40
16.5
1.3
2.9
Most-active issues in late trading
749.39
744.84
748.16
1.68
0.23
748.16
625.44
11.3
13.4
10.1
25302.28 25194.86 25251.00
636.15
633.80
635.25
13.57
0.92
0.05
25692.25 21514.15
661.93
521.59
12.0
14.6
8.5
5.6
6.6
5.7
21861.49 21767.94 21808.40
Nasdaq Stock Market
Nasdaq Composite
6292.26
Nasdaq 100
5852.80
Standard & Poor's
500 Index
Net chg
% chg
2449.12
6267.85
5821.87
6283.02
5838.08
2439.03
-5.27
High
52-Week
Low
% chg
2444.24
1.19
1713.65
830.03
1703.43
825.45
1707.99
828.14
-0.98
0.49
Other Indexes
Russell 2000
1382.53
1377.06
1382.23
4.78
508.24
NYSE Arca Biotech
4002.09
3974.50
NYSE Arca Pharma
509.60
0.28
0.27
2480.91
0.06
1791.93
876.06
0.35
1450.39
521.37
522.75
2.29
94.50
93.36
-0.52
PHLX§ Gold/Silver
93.68
89.18
86.65
3.36
PHLX§ Oil Service
89.18
122.50
119.16
120.48
1083.94
12.11
1077.28
11.23
1082.62
11.32
YTD
% chg
3-yr. ann.
2085.18
11.3
12.8
12.1
9.2
1476.68
703.64
8.7
9.5
2.9
-1.2
6.1
7.4
1156.89
11.0
1.8
5.8
7.0
VanEck Vectors Gold Miner GDX
8,976.3 242.93
-1.64
-0.67 244.76 242.65
8,044.1
95.25
-0.30
95.88
95.25
34.69
34.48
LendingClub
LC
3,801.1
6.10
0.005
0.08
6.10
6.10
iShares MSCI Emg Markets EEM
3,716.2
44.26
-0.51
-1.14
44.92
44.15
VanEck Vectors Jr Gold GDXJ
3,432.2
35.55
0.31
0.88
35.80
35.03
Microsoft
2,794.1
72.30
-0.53
-0.73
72.94
72.15
MSFT
Percentage gainers…
Catalent
CTLT
428.9
39.90
4.54
12.84
42.00
35.36
ProSharesUltVIXST
UVXY
2,306.8
33.66
3.26
10.72
34.12
30.19
VS 2x VIX Short Term
TVIX
1,605.2
18.35
1.69
10.14
18.60
16.55
ProShares VIX ST Fut
VIXY
46.7
41.49
2.21
5.63
41.69
39.14
Murphy Oil
MUR
89.1
24.00
1.25
5.49
26.39
22.63
FINL
199.3
8.02
-2.40
-23.03
10.42
7.81
9.5
2.56
-0.18
-6.45
2.74
2.56
25.3
4.15
-0.25
-5.68
4.40
4.05
9.4
55.70
-3.35
-5.67
59.05
55.70
24.5
46.27
-2.63
-5.38
49.25
46.27
2834.14
21.6
30.1
9.1
0.44
549.20
463.78
-0.4
8.6
0.1
...And losers
99.33
69.71
30.8
2.1
9.6
Finish Line Cl A
101.55
73.03
-8.0
13.1
-4.1
192.66
117.79
-25.1
Arrowhead Pharmaceuticals ARWR
-34.4 -25.6
Kamada Ltd.
KMDA
19.4
-19.4
Pinnacle Foods
PF
Esperion Therapeutics ESPR
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
Region/Country Index
Close
Percentage Gainers...
Latest
% chg
Net chg
YTD
% chg
2833.84
367.40
249.79
1.96
0.33
0.35
0.07
0.09
0.14
11.9
12.7
16.8
Americas
Brazil
Canada
Mexico
Chile
DJ Americas
589.00
Sao Paulo Bovespa 71016.59
S&P/TSX Comp
15052.03
S&P/BMV IPC
51266.72
Santiago IPSA
3928.46
0.19
–57.06
–3.96
–106.51
–4.16
0.03
9.0
17.9
–1.5
12.3
21.9
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
372.29
372.10
3884.55
5079.75
12123.47
1392.42
21726.21
514.76
1068.75
10285.90
551.56
8864.23
7401.46
–1.78
–1.78
–21.16
–24.58
–44.47
0.41
–20.29
–2.66
8.26
–59.40
–2.73
–41.95
…
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
5709.90
Shanghai Composite 3362.65
Hang Seng
27863.29
S&P BSE Sensex
31750.82
Nikkei Stock Avg
19449.90
Straits Times
3267.62
Kospi
2370.30
Weighted
10525.98
The Global Dow
DJ Global Index
DJ Global ex U.S.
–0.08
–0.03
–0.21
–0.11
–0.48
–0.48
–0.54
–0.48
–0.37
0.03
–0.09
–0.51
0.78
–0.57
–0.49
–0.47
Closed
–34.00 –0.59
0.93
31.13
0.05
15.13
0.49
154.76
–0.01
–2.71
0.25
8.05
–8.21 –0.35
0.10
10.47
3.0
6.2
7.7
4.5
5.6
–5.3
13.0
6.5
–7.3
10.0
3.2
7.8
3.6
0.8
8.3
26.6
19.2
1.8
13.4
17.0
13.8
Company
Symbol
MaxPoint Interactive
IXYS
Kite Pharma
Intellia Therapeutics
Juno Therapeutics
MXPT
Cellectis ADR
Adaptimmune Therap ADR
Team
Immunomedics
Mustang Bio
CLLS
Bellicum Pharmaceuticals
Foresight Autonomous ADR
County Bancorp
Internet Gold-Golden
Progenics Pharmaceuticals
BLCM
13.70 8.20 149.09
22.40 6.45 40.44
KITE
178.05 38.95 28.00
NTLA
20.82 3.36 19.24
JUNO
36.48 5.75 18.71
IXYS
ADAP
TISI
IMMU
MBIO
FRSX
ICBK
IGLD
PGNX
High
13.75
22.50
179.69
22.00
37.50
52-Week
Low
% chg
Symbol
VanEck Vectors Gold Miner
Delcath Systems
Uni-Pixel
Chesapeake Energy
Finl Select Sector SPDR
GDX
Advanced Micro Devices
Bank of America
iShares MSCI Emg Markets
AVEO Pharmaceuticals
SPDR S&P 500
AMD
DCTH
UNXL
CHK
XLF
EEM
AVEO
SPY
52.8
94.6
206.8
4.6
14.7
Forterra
root9B Holdings
Direxion Jr Gold Bear 3X
Direxion Gold Miner 3x Br
Ominto
FRTA
A consumer rate against its
benchmark over the past year
30-year mortgage, Rate
Hills Bank and Trust Company
3.75%
Hills, IA
800-445-5725
Pacific Finance Group, LLC
3.75%
Bothell, WA
425-354-5602
Reliance Savings Bank
Altoona, PA
3.75%
814-949-6255
1
3 6
month(s)
One year ago
1 2 3 5 710
years
maturity
t
t
Interest rate
Federal-funds rate target
1.00-1.25 1.00-1.25
Prime rate*
4.25
4.25
Libor, 3-month
1.31
1.32
Money market, annual yield
0.29
0.29
Five-year CD, annual yield
1.45
1.47
30-year mortgage, fixed†
3.87
3.84
15-year mortgage, fixed†
3.11
3.05
Jumbo mortgages, $424,100-plus† 4.34
4.28
Five-year adj mortgage (ARM)† 3.30
3.30
New-car loan, 48-month
2.85
2.89
HELOC, $30,000
5.02
4.93
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.83 l
0.24 l
1.17 l
l
3.44
l
2.70
l
4.02
l
3.10
l
2.85
l
4.57
1.25
4.25
1.32
0.36
1.47
4.33
3.50
4.88
4.03
3.36
5.22
1.00
1.00
1.08
-0.10
0.12
-0.37
-0.27
-0.24
-0.24
-0.32
0.44
Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest
banks.† Excludes closing costs.
Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com
USAT
CO
Symbol
67,559
48,276
48,187
40,289
36,290
28.70
4.31
1.81
8.20
25.59
iShares Core 10+Y USD Bd
MaxPoint Interactive
IXYS
Quintiles IMS Holdings
ProShares Short RE
ILTB
12.23 -1.61
23.72 -0.21
44.77 -0.36
3.84 1.05
244.57 0.00
15.65
5.66
25.80 14.81
45.07 33.94
4.24
0.50
248.91 208.38
0
0.75
–10
0.00
–15
30
WSJ
.COM
REK
WSJ Dollar index
Euro
Yen
1413 178.05
1217 47.62
1168 16.85
1150 25.49
977 24.85
17,001
178
19,095
74
104
Country/currency
US$vs,
YTDchg
Mon
in US$ per US$ (%)
Americas
Argentina peso
.0580 17.2295 8.6
Brazil real
.3157 3.1671 –2.7
Canada dollar
.7995 1.2508 –6.9
Chile peso
.001592 628.30 –6.2
Colombia peso
.0003395 2945.78 –1.9
Ecuador US dollar
1
1 unch
Mexico peso
.0560 17.8731 –13.8
Peru new sol
.3088 3.239 –3.4
Uruguay peso
.03489 28.6600 –2.4
Venezuela b. fuerte .100150 9.9851 –0.1
Asia-Pacific
2016
64.33 -0.04
13.70 149.09
22.40 40.44
95.55 -3.31
16.28 0.62
28.00
2.45
-1.17
0.55
-0.52
67.62
13.75
22.50
99.95
18.93
59.26
3.85
10.06
70.10
16.13
179.69
48.38
17.60
27.63
25.00
39.82
35.64
10.80
19.65
19.58
U.S.-dollar foreign-exchange rates in late New York trading
10%
–5
Q
29439
8827
5313
2126
1646
4,051
858
12,856
26,384
91
52-Week
High
Low
Currencies
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
1.50
IXYS
Volume % chg from Latest Session
(000) 65-day avg Close % chg
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
Forex Race
5
MXPT
KITE
Kite Pharma
PBE
PowerSh Dyn Biotech
MYCC
ClubCorp Holdings
FT Nasdaq Semiconductor FTXL
WT Emrg Mkts Cnsmr GrowthEMCG
2017
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
1.903
1.907
2.237
1.314 –2.043 2.476
2.159
2.924
2.440
5.220
2.740
1.770
2.182
2.942
2.460
5.343
2.760
1.780
2.609
3.390
2.790
6.448
3.120
2.516
1.539
2.497
1.920
4.948
2.000
1.349
1.431
0.951
0.616
7.556
0.760
0.746
799.330
5.433
5.472
6.290
5.134
3.795 4.990
2.462
3.738
2.578
3.326
2.416
2.879
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Australian dollar
.7963 1.2558
China yuan
.1511 6.6178
Hong Kong dollar
.1278 7.8237
India rupee
.01567 63.805
Indonesia rupiah .0000751 13321
Japan yen
.009153 109.26
Kazakhstan tenge .002992 334.19
Macau pataca
.1255 7.9672
Malaysia ringgit
.2343 4.2680
New Zealand dollar
.7256 1.3782
Pakistan rupee
.00950 105.310
Philippines peso
.0196 50.933
Singapore dollar
.7388 1.3535
South Korea won .0008941 1118.46
Sri Lanka rupee
.0065385 152.94
Taiwan dollar
.03319 30.131
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
–9.6
–4.7
0.9
–6.1
–1.5
–6.6
0.1
0.6
–4.9
–4.6
0.9
2.7
–6.5
–7.4
3.0
–7.2
US$vs,
YTDchg
Mon
in US$ per US$ (%)
Country/currency
.03013 33.190 –7.3
.00004399 22735 –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
.04592 21.776 –15.2
.1610 6.2103 –12.1
1.1980 .8348 –12.2
.003935 254.12 –13.6
.009572 104.47 –7.5
.1290 7.7543 –10.3
.2820 3.5458 –15.3
.01710 58.465 –4.6
.1256 7.9590 –12.6
1.0468 .9553 –6.2
.2904 3.4441 –2.3
.0392 25.5135 –5.8
1.2933 .7732 –4.5
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6517 .3771 –0.01
.0566 17.6760 –2.5
.2794 3.5789 –7.0
3.3184 .3013 –1.4
2.5964 .3851 0.05
.2747 3.640
...
.2666 3.7503 –0.01
.0767 13.0362 –4.8
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 85.44 –0.20–0.23 –8.07
Sources: Tullett Prebon, WSJ Market Data Group
Commodities
COMMODITIES
Monday
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
Ranked by change from 65-day average*
Company
1472.620
EMBI Global, J.P. Morgan
CDNA
52-Week
High
Low
10-yr Treasury, Ryan ALM 1756.164
DJ Corporate
378.666
Aggregate, Barclays Capital 1944.180
High Yield 100, Merrill Lynch 2830.737
Fixed-Rate MBS, Barclays 1987.210
Muni Master, Merrill
522.637
Treasury, Ryan ALM
-35.1
-65.5
-43.8
5.7
156.0
GCO
Volume % chg from Latest Session
(000) 65-day avg Close % chg
2.25
Close
7.00 3.77
73.45 21.86
4.94 0.76
5.90 3.55
14.95 4.27
SFM
Volume Movers
Corporate Borrowing Rates and Yields
Bond total return index
-9.05
-8.83
-8.72
-8.55
-8.04
JOB
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Yield/Rate (%)
Last (l)Week ago
-0.40
-2.45
-0.26
-0.50
-1.18
GEE Group
Genesco Inc
CareDx
USA Technologies
China Cord Blood
s
0.00
Monday
4.02
25.30
2.72
5.35
13.49
-45.6
...
36.8
-38.6
-3.5
3.75%
Farmers MerchantsBankofLongBeach
3.75%
Long Beach, CA
562-437-0011
-46.0
-14.1
-42.0
-75.1
-74.9
23.11 7.41
11.70 4.21
35.89 19.50
14.24 5.86
11.72 4.60
3.00
3.63%
866-343-0563
6.61 2.39
25.98 17.38
52.40 21.90
29.70 3.26
31.70 5.60
13.77
13.20
12.94
12.90
12.12
notes and bonds
t
30-year fixed-rate 3.00
mortgage
2.00
10-year Treasury
note yield
1.00
EverBank
Jacksonville, FL
-9.81
-9.71
-9.69
-9.60
-9.41
OMNT
1.14
0.68
3.28
0.95
0.68
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
t
4.00%
-0.26
-2.12
-2.35
-0.64
-0.61
DUST
9.42
5.83
28.62
8.30
6.29
-55.3
-50.8
-31.4
390.5
-51.5
52-Week
Low
% chg
2.39
19.72
IMKTA 21.90
CGG
6.03
LABD
5.87
JDST
CARV
18.58
0.02
0.05
3.59
18.94
High
...
-73.6
-53.8
-35.4
34.3
Carver Bancorp
Sprouts Farmers Market
Ingles Markets Cl A
CGG ADR
Direxion S&P Biotech Bear
54.1 24.26 3.63
-54.5 0.13 5.22
5235.9 0.06 -75.85
13.7 3.65 -3.69
-40.9 24.65 -0.64
Latest Session
Close Net chg % chg
22.76 3.19
12.75 0.41
237.42 47.00
72.47 22.64
23.05 2.40
11.4
-15.5
-59.5
336.9
...
* Volumes of 100,000 shares or more are rounded to the nearest thousand
3.84%
Bankrate.com avg†:
* 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.
-17.47
-12.71
-10.82
-10.08
-9.87
29.64 16.09
8.36 3.76
39.70 10.45
11.91 2.02
12.70 9.50
s
Selected rates
NYSE Arca
-0.80
-0.38
-6.25
-2.54
-0.39
17.03
15.16
14.16
14.07
13.90
s
U.S. consumer rates
Nasdaq
Total volume*1,541,135,342 194,099,664
Adv. volume* 896,387,413 98,919,325
Decl. volume* 594,265,358 86,071,645
Issues traded
3,061
1,271
Advances
1,438
607
Declines
1,470
623
Unchanged
153
41
New highs
67
81
New lows
44
12
Closing tick
679
85
Closing Arms†
0.65
1.02
Block trades*
7,009
1,081
3.78
2.61
51.54
22.66
3.56
RTNB
4.29
0.79
1.60
1.46
1.55
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
Symbol
29.48
6.00
12.90
11.84
12.70
34,968
34,828
33,698
31,471
31,115
BAC
Company
3.85
10.06
39.82
10.83
17.52
Most Active Stocks
Company
Total volume* 704,983,224 8,366,628
Adv. volume* 267,099,831 5,637,548
Decl. volume* 423,457,299 2,456,073
Issues traded
3,095
334
Advances
1,383
147
Declines
1,582
162
Unchanged
130
25
New highs
89
4
New lows
55
6
Closing tick
106
81
Closing Arms†
1.31
0.39
Block trades*
5,647
87
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
S O N D J F MAM J J A
2016
2017
24.19
-0.49
4075.95
0.35
24.62
0.99
-0.31
2.97
19.1
-2.1
0.24
-0.17
2.3
768.37 34.7
9.36 -12.5
Low
24.50
34.48
0.6
1138.25
22.51
After Hours
% chg
High
5,057.0
6.7
0.20
Net chg
INTC
0.7
-1.50 -1.23
Last
NYSE NYSE Amer.
Intel
9.1
3.91
15,340.3
SPY
SPDR S&P 500
Quintiles IMS Holdings Q
4.9
-0.55
Volume
(000)
Symbol
455.65
Philadelphia Stock Exchange
World
16.7
20.0
20.1
21.9
Company
533.62
-0.03
2.12
0.04
5046.37
4660.46
12000.02 10289.35
-0.10
3999.44 115.49
522.93
6422.75
5950.73
0.05
-0.06
-0.13
KBW Bank
PHLX§ Semiconductor
CBOE Volatility
0.15
11836.46 11776.45 11800.22 -11.81
511.00
Value Line
22118.42 17888.28
-0.02
17.37
15.55
MidCap 400
SmallCap 600
NYSE Composite
Volume, Advancers, Decliners
9165.89
Latest
Close
Low
Dow Jones
Transportation Avg
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.
High
Industrial Average
Late Trading
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
570.08
-0.13
-0.02
589.81
508.27
178.01
46.57
2.925
1309.70
0.18
-1.30
0.033
17.20
0.10 195.14
54.45
-2.72
3.93
1.14
1.33 1349.40
166.50
42.53
2.56
1127.80
% Chg
9.11
YTD
% chg
0.50
-3.48 -7.53
-0.87 -13.31
2.52 -21.46
-1.00 13.89
THE WALL STREET JOURNAL.
B8 | Tuesday, August 29, 2017
COMMODITIES
Futures Contracts
Open
Metal & Petroleum Futures
Contract
High hilo
Low
Settle
Open
interest
Chg
Open
interest
257
201,365
667
51,833
405,930
19,333
9,494
7,918
4
8,116
26,757
468
1
62,439
70
131,756
516,590
226,911
329,931
159,920
155,151
186,937
25,688
100,330
23,229
129,760
16,793
322,030
135,097
145,587
99,806
114,751
Corn (CBT)-5,000 bu.; cents per bu.
t 335.50
336.00 –2.75 157,225
t 350.50
351.00 –2.50 781,755
Oats (CBT)-5,000 bu.; cents per bu.
246.00
246.00
236.75
238.50 –2.75
102
Sept
Dec
253.00
259.75
251.25
251.75 –1.25
4,785
Soybeans (CBT)-5,000 bu.; cents per bu.
936.00
944.00
932.50
935.25 –3.75 26,440
Sept
Nov
942.50
950.50
938.00
941.25 –3.25 382,129
Soybean Meal (CBT)-100 tons; $ per ton.
296.20
298.40
294.70
295.50
–.90 29,882
Sept
Dec
299.70
302.10
298.50
299.40
–.60 185,066
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
34.56
34.90
34.41
34.59
–.02 27,126
Sept
Dec
34.90
35.25
34.77
34.96
.01 191,182
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
1240.50 1256.00 s
1232.50 1233.00 –6.50
2,333
Sept
Nov
1271.00 1288.00 s
1265.00 1265.00 –6.00
7,237
Wheat (CBT)-5,000 bu.; cents per bu.
406.25
410.00
t 398.75
400.00 –9.50 28,076
Sept
Dec
433.50
436.50
t 426.50
428.00 –7.25 256,880
Wheat (KC)-5,000 bu.; cents per bu.
403.00
404.00
t 394.00
396.75 –7.75 21,319
Sept
Dec
431.00
432.00
t 422.25
425.50 –6.75 140,719
Wheat (MPLS)-5,000 bu.; cents per bu.
649.00
650.00
641.00
644.75 –5.75
7,975
Sept
Dec
668.00
669.00
659.50
664.25 –5.00 39,925
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
142.000 143.100
141.900 142.425 1.050
5,692
Aug
Oct
144.175 147.250
144.000 146.400 3.450 17,199
Cattle-Live (CME)-40,000 lbs.; cents per lb.
106.500 107.400
105.750 106.200
.250
1,909
Aug
Oct
107.800 109.750
107.600 108.375 1.450 150,501
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
62.775
63.000
t 61.575
61.625 –1.450 106,810
Oct
Dec
58.600
58.700
t 57.500
57.575 –1.375 59,186
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
374.20
382.00
374.00
380.10
8.10
1,956
Sept
Nov
361.20
369.10
361.10
366.90
7.50
1,905
Milk (CME)-200,000 lbs., cents per lb.
16.50
16.51
16.50
16.51
.01
4,729
Aug
Sept
16.64
16.73
16.41
16.46
–.18
5,472
Cocoa (ICE-US)-10 metric tons; $ per ton.
1,937
1,937
1,937
2,015
53
255
Sept
Dec
1,905
2,002
1,905
1,997
64 146,245
338.75
353.25
Sept
Dec
340.25
355.00
Cash Prices | WSJ.com/commodities
Monday, August 28, 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.
Monday
Monday
Coins,wholesale $1,000 face-a
Energy
Propane,tet,Mont Belvieu-g
Butane,normal,Mont Belvieu-g
NaturalGas,HenryHub-i
NaturalGas,TranscoZone3-i
NaturalGas,TranscoZone6NY-i
NaturalGas,PanhandleEast-i
NaturalGas,Opal-i
NaturalGas,MarcellusNE PA-i
NaturalGas,HaynesvilleN.LA-i
Coal,C.Aplc.,12500Btu,1.2SO2-r,w
Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w
0.7740
0.9258
2.920
2.900
1.880
2.600
2.820
1.640
2.730
52.600
11.550
Other metals
LBMA Platinum Price PM
*975.0
Platinum,Engelhard industrial
983.0
Platinum,Engelhard fabricated
1083.0
Palladium,Engelhard industrial
940.0
Palladium,Engelhard fabricated
1040.0
Aluminum, LME, $ per metric ton
*2096.5
Copper,Comex spot
3.0650
Iron Ore, 62% Fe CFR China-s
76.3
Shredded Scrap, US Midwest-s,w
n.a.
Steel, HRC USA, FOB Midwest Mill-s
n.a.
Fibers and Textiles
Metals
Gold, per troy oz
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA Gold Price AM
LBMA Gold Price PM
Krugerrand,wholesale-e
Maple Leaf-e
American Eagle-e
Mexican peso-e
Austria crown-e
Austria phil-e
1302.86
1400.57
1299.00
1441.89
*1287.05
*1285.30
1362.71
1375.82
1375.82
1587.83
1287.36
1375.82
Silver, troy oz.
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
(U.S.$ equivalent)
17.3000
20.7600
17.3800
21.7250
Closed
Closed
13172
Burlap,10-oz,40-inch NY yd-n,w
Cotton,1 1/16 std lw-mdMphs-u
Cotlook 'A' Index-t
Hides,hvy native steers piece fob-u
Wool,64s,staple,Terr del-u,w
0.6000
0.6958
*80.00
n.a.
4.55
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
SoybeanMeal,Cent IL,rail,ton48%-u
4.70
61
3.1000
77.9
483.6
198
88
350
2.8050
371.00
23.75
7.5188
297.50
Monday
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
9.1450
n.a.
4.0500
3.4675
5.0650
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
select 1-3,600-900 lbs.-u
Broilers,dressed 'A'-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
168.38
164.68
n.a.
0.9215
2.5925
148.75
156.50
84.50
n.a.
1.2354
1.4713
0.7750
14.35
0.77
73.00
1.7151
1.0075
107.00
157.44
Fats and Oils
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
36.7500
0.3150
n.a.
0.3384
0.3513
0.3550
August 28, 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.
0
level
Chg From (%)
May '17 June '16
U.S. consumer price index
244.955
252.014
All items
Core
0.09
0.07
1.6
1.7
Week
ago
52-Week
High
Low
4.25 4.25 4.25 3.50
2.95 2.95 2.95 2.70
1.475 1.475 1.475 1.475
Policy Rates
Euro zone
Switzerland
0.00
0.50
0.00
0.50
0.00
0.50
0.25
1.50
0.25
1.50
1.02
U.S.
1.13
1.38
0.00
0.50
Discount
1.75
1.75
1.75
Week
Latest ago
1.00
Federal funds
0.990 0.980 0.990 0.160
1.070 1.180 1.180 0.250
1.130 1.130 1.130 0.395
4 weeks
13 weeks
26 weeks
Secondary market
Low
1.0900 0.9700 1.1600 0.2000
Bid
1.1600 1.1600 1.1700 0.2800
Offer
1.1700 1.1700 1.1900 0.3000
3.438 3.543 3.865 2.808
3.465 3.575 3.899 2.837
30 days
60 days
Other short-term rates
Week
ago
Latest
3.00
Libor
1.16
0.35
1.10
1.14
1.16
1.09
1.14
1.18
1.11
1.15
1.18
0.37
0.43
0.50
1.18
1.22
1.25
1.14
1.19
1.23
1.18
1.22
1.25
0.43
0.57
0.66
Commercial paper
Nonfinancial
1-month
2-month
3-month
Financial
1-month
2-month
3-month
Discount window primary credit
1.75
1.75
1.75
1.00
3.50
3.42
Conventional mortgages
n.a.
n.a.
Treasury yields at constant
maturities
1-month
3-month
6-month
1-year
2-year
3-year
5-year
7-year
10-year
20-year
0.97
1.01
1.11
1.23
1.33
1.47
1.77
2.01
2.19
2.52
0.96
1.02
1.13
1.24
1.33
1.48
1.78
2.04
2.22
2.57
52-Week
High
Low
Treasury yields (secondary market)
1.16
1.00
1.13
1.15
1.24
1.41
1.64
2.08
2.37
2.55
2.91
0.13
0.24
0.43
0.57
0.75
0.87
1.13
1.40
1.57
1.90
1-month
3-month
6-month
0.95
0.99
1.09
0.95
1.00
1.11
0.98
1.11
1.13
0.12
0.24
0.43
0.18
0.37
0.43
0.73
0.77
0.17
0.35
0.45
0.75
0.80
0.29
0.49
0.63
0.97
0.97
-0.30
-0.16
0.02
0.41
0.44
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1.00
1.09
1.17
1.25
1.33
1.48
1.65
2.00
0.93
1.00
1.05
1.10
1.16
1.27
1.40
1.69
TIPS
5-year
7-year
10-year
20-year
Long-term avg
Interest rate swaps
1-year
2-year
3-year
4-year
5-year
7-year
10-year
30-year
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
1.28
One month
Three month
Six month
One year
52-Week
high
low
3.00
3.00
2.25
n.a.
n.a.
n.a.
n.a.
3.49
4.41
3.24
4.19
State and local bonds
n.a.
n.a.
3.06
2.83
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
0.50
0.93
1.30
0.50
0.86
1.25
Eurodollars
1 month
3 month
6 month
Notes on data:
Federal-funds rate is an average for the seven days ended Wednesday, weighted according to rates
on broker trades; Commercial paper rates are discounted offer rates interpolated from sales by
discounted averages of dealer bid rates on nationally traded certificates of deposit; Discount window
primary credit rate is charged for discounts made and advances extended under the Federal
Reserve's primary credit discount window program; rate is average for seven days ended Wednesday;
Inflation-indexed long-term TIPS average is indexed and is based on the unweighted average bid
yields for all TIPS with remaining terms to maturity of 10 years or more; Swap rates are International
Swaps and Derivatives Association (ISDA(R)) mid-market par rates for a fixed-rate payer, who in
return receives three-month Libor, and are based on rates collected at 11:00 a.m. ET by Garban
Intercapital PLC; Source is Reuters; Moody's triple-AAA rates are averages of industrial bonds only;
Muni rates are Thursday quotes based on the Bond Buyer Index for general obligation, 20 years to
maturity, mixed quality debt; Mortgage rates are contract rates on commitments for fixed-rate first
mortgages
Sources: Federal Reserve; for additional information on these rate data and their derivation,
please see, www.federalreserve.gov/releases/h15/data.htm
1.25
1.28
0.62
1.22889
1.31194
1.44944
1.72289
1.23167
1.31056
1.45500
1.72900
1.23389
1.31667
1.46544
1.82761
0.50390
0.79235
1.16070
1.47510
-0.401
-0.373
-0.300
-0.190
-0.398
-0.377
-0.299
-0.187
-0.370
-0.316
-0.194
-0.069
-0.405
-0.378
-0.308
-0.190
Euro Libor
One month
Three month
Six month
One year
Euro interbank offered rate (Euribor)
-0.372
-0.329
-0.271
-0.151
One month
Three month
Six month
One year
Latest
-0.371
-0.329
-0.272
-0.152
Value
Traded
-0.366
-0.297
-0.185
-0.046
-0.375
-0.332
-0.274
-0.163
52-Week
High
Low
DTCC GCF Repo Index
Treasury
MBS
1.060
1.064
28.400 1.366 0.244
85.958 1.506 0.257
Open Implied
Settle Change Interest Rate
Corporate bonds, Moody's seasoned
Aaa
Baa
–.30
502
–.05 104,505
Sept
Dec
1.2924
1.2956
1.2952
1.2988
1.2882
1.2922
1.2948
1.2987
.0061 220,027
.0061
4,765
14.03
14.71
14.35
14.88
13.84
14.51
14.31
14.84
.28 403,613
.15 230,662
Sept
Dec
1.0482
1.0547
1.0511
1.0572
1.0451
1.0515
1.0486
1.0548
.0025
.0025
.7932
.7943
.7935
.7926
.7901
.7900
.7898
.7972
.7967
.7965
.7962
.7925
.7906
.7918
.7925
.7922
.7919
.7916
.7901
.7900
.7892
.7971
.7968
.7965
.7962
.7952
.7941
.7931
25.15
26.45
Oct
Dec
24.88
26.45
25.16
26.48
68.61
68.59
70.19
69.95
68.61
68.56
70.33
69.83
Sept
Nov
135.70
135.45
135.80
135.60
131.80
132.15
132.75
133.25
t
.06
…
3,172
368
1.72
204
1.68 146,142
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
–2.65
–2.20
807
7,146
Swiss Franc (CME)-CHF 125,000; $ per CHF
Australian Dollar (CME)-AUD 100,000; $ per AUD
Sept
Oct
Nov
Dec
March'18
June
Sept
Mexican Peso (CME)-MXN 500,000; $ per MXN
Interest Rate Futures
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
Sept
Dec
156-200 156-260
155-120 155-190
156-050
154-300
156-240
155-170
7.0 410,747
8.0 398,463
Sept
Dec
126-280 127-000
126-195 126-235
126-255
126-170
127-000
126-235
4.0 1,814,581
4.0 1,637,588
Sept
Dec
118-180 118-217
118-090 118-130
118-165
118-077
118-210
118-122
2.7 1,440,204
2.7 1,834,652
Sept
Dec
108-070 108-077
108-035 108-042
108-065
108-027
108-077
108-040
.7 916,888
.5 700,609
98.843
98.750
98.840
98.765
–.005 175,568
.010 320,507
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
.05622
.05562
.05624 s
.05565
.05608
.05499
.05570 –.00064
.05516 –.00063
Sept
Dec
1.1957
1.2013
1.1997 s
1.2056 s
1.1930
1.1989
1.1993
1.2052
Euro (CME)-€125,000; $ per €
40,758
557
.0036 150,120
.0036
417
.0036
32
.0036
5,726
.0035
219
.0034
18
.0034
61
Oct
Dec
21
5,701
.0101 457,607
.0102 10,344
Index Futures
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Mini DJ Industrial Average (CBT)-$5 x index
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Sept
Dec
21802
21760
21859
21820
21750
21710
21791
21749
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Sept
Dec
2442.80
2439.00
2449.00
2447.50
2436.40
2437.50
2443.70
2441.70
1.20
1.20
Sept
Dec
2442.00
2440.50
2449.25
2447.00
2436.25
2434.25
2443.75
2441.75
1.25 3,175,692
1.25 100,289
1713.10
1709.90 s
1702.00
1703.50
1707.70
1706.60
–.60
–.60
Aug
Jan'18
98.843
98.755
98.843
98.765
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
S&P 500 Index (CME)-$250 x index
Mini S&P 500 (CME)-$50 x index
–18 147,916
–16
1,062
71,050
450
Sept
Dec
103.281
102.953
103.453 s
103.203
103.109 s t 102.953
103.438
103.109
.141
.156
32,035
n.a.
Sept
Oct
98.7650
98.7550
98.7650
98.7550
98.7650
98.7550
98.7650
98.7575
…
…
2,382
365
Sept
Dec
1707.20
1705.60
Sept
Dec
March'18
Dec
98.6675
98.5650
98.5050
98.3400
98.6725
98.5800
98.5250
98.3650 s
98.6675
98.5650
98.5000
98.3300
98.6700
98.5800
98.5200
98.3600
…
.0100
.0100
.0250
1,366,527
2,015,566
1,177,756
1,526,108
Sept
Dec
5819.8
5826.5
5856.0
5863.3
5801.3
5809.0
5844.8
5852.0
19.8 280,801
19.8
2,853
Sept
Dec
1375.20
1371.40
1383.70
1382.00
1372.60
1371.40
1381.80
1380.60
6.10 557,911
6.10
499
Sept
1355.60
1355.60
1350.30
1353.50
1.10
8,380
Sept
Dec
92.35
92.15
92.48
92.26
92.12
91.91
92.14
91.93
–.54
–.55
51,201
4,368
1 Month Libor (CME)-$3,000,000; pts of 100%
Eurodollar (CME)-$1,000,000; pts of 100%
Currency Futures
Mini S&P Midcap 400 (CME)-$100 x index
Mini Nasdaq 100 (CME)-$20 x index
Mini Russell 2000 (ICE-US)-$100 x index
Mini Russell 1000 (ICE-US)-$100 x index
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Sept
Dec
.9159
.9203
.9181
.9221
.9148
.9189
.9175
.9216
Sept
Dec
.0013 208,304
.0013
5,863
.8020
.8026
.8039
.8046
.7996
.8003
.8007 –.0006 185,049
.8013 –.0006
5,496
Canadian Dollar (CME)-CAD 100,000; $ per CAD
U.S. Dollar Index (ICE-US)-$1,000 x index
t
t
87,340
2
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
YTD total
return (%)
Yield (%)
Latest Low High
Index
3.4 U.S. Aggregate
1944.18
Total
return
close
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
2.440 1.920 2.790
U.S. Corporate Indexes Bloomberg Barclays
1987.21
2.3
Mortgage-Backed
1954.92
1.9
Ginnie Mae (GNMA) 2.720 1.920 3.090
Fannie mae (FNMA) 2.750 2.030 3.120
2.740 2.000 3.120
3.100 2.780 3.520
1165.36
2.5
2619.30
3.8 Intermediate
2.600 2.210 3.010
1794.42
2.6
3800.60
8.1 Long term
4.170 3.970 4.710
522.64
4.8
Muni Master
1.770 1.349 2.516
566.76
4.1 Double-A-rated
2.530 2.120 2.870
366.23
5.4
7-12 year
1.786 1.391 2.618
3.400 3.180 3.870
407.89
5.7
12-22 year
2.293 1.692 3.047
392.29
5.7
22-plus year
2.848 2.141 3.622
5.1
2767.18
U.S. Corporate
5.6
712.63
Triple-B-rated
High Yield Bonds Merrill Lynch
411.21
5.8
High Yield Constrained 5.655 5.399 6.858
6.4
Freddie Mac (FHLMC) 2.760 2.030 3.130
Global Government J.P. Morgan†
1.5
Triple-C-rated
10.656 9.584 15.015
545.00
2830.74
5.5
High Yield 100
5.220 4.948 6.448
756.24
0.4
Canada
1.960 1.240 2.120
373.23
6.0
Global High Yield Constrained 5.194 5.073 6.450
369.23
0.1
EMU§
1.115 0.520 1.363
302.22
5.3
Europe High Yield Constrained 2.363 2.249 3.814
708.63
0.3
France
0.840 0.280 1.210
Germany
0.400 -0.100 0.620
Japan
0.370 0.140 0.460
Netherlands
0.560 0.030 0.760
U.K.
1.420 0.980 1.790
409.07
510.67
U.S Agency Bloomberg Barclays
2.5
1645.28
U.S Agency
1.760 1.260 1.960
288.51
10-20 years
1.580 1.090 1.750
562.71
8.2 20-plus years
2.820 2.430 3.460
935.75
Yankee
2.670 2.350 3.090
799.33
1.6
1470.52
3381.33
4.7
2453.76
Global Government 1.350 0.860 1.560
-0.8
0.1
-0.6
2.4
8.2 Emerging Markets ** 5.433 5.134 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
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
1.375
2.250
DTCC GCF Repo Index Futures
Treasury Aug
Treasury Sep
Treasury Oct
0.100
0.100
98.875 0.005 3335 1.125
98.850 0.015 2426 1.150
98.770 0.000 1842 1.230
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 March 16, 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.
1.355
2.293
0.845
1.633
1.869 s
2.674 s
l
1.840
1.818
1.449
51.9
50.2
l
2.657
2.693
1.865
51.9
48.9
23.2
France 2 -0.505 t
10 0.700 s
l
-0.499
-0.463
-0.576
-183.6
-142.0
l
0.694
0.805
0.149
Germany 2 -0.740 t
10 0.380 s
l
-0.730
-0.683
l
0.379
Italy 2 -0.023 s
10 2.090 t
l
-185.5
60.5
-147.3
-148.5
-206.7
-145.6
0.544
-0.612 -209.0
-0.072 -177.5
-178.9
-170.5
-0.026
-0.019
-0.089
-137.3
-136.4
-93.3
l
2.099
2.127
1.111
-6.6
-6.8
-52.2
Japan 2 -0.155 s
10 0.008 t
l
-0.159
-0.112
-0.174
-101.9
0.014
0.078
-150.5
-0.069 -214.7
-149.6
l
-215.4
-170.2
Spain 2 -0.345 s
10 1.594 t
l
-0.348
-0.334
-0.210
-169.5
-168.5
-105.5
-56.2
l
1.600
1.530
0.914
1.750
U.K. 2
0.179
l
0.179
0.255
0.167
4.250
10
1.054
l
1.054
1.218
0.569
1.450
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
1.338
2.168
10
0.000
Year ago
l
Australia 2
1.000
Month ago
U.S. 2 1.350 s
10 2.155 t
2.750
0.000
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
l
2.750
2.750
Call money
Data are annualized on a 360-day basis. Treasury yields are per annum,
on actively traded noninflation and inflation-indexed issues that are
adjusted to constant maturities. Data are from weekly Federal Reserve
release H.15.
1.16
Open
interest
129.90
131.35
25.15
26.45
2.200
90 days
Federal funds (effective)
British Pound (CME)-£62,500; $ per £
Chg
129.55
129.60
Cotton (ICE-US)-50,000 lbs.; cents per lb.
30-year mortgage yields
Key Interest Rates
Week Ended
Aug 25 Aug 18
Settle
131.00
132.45
Nov
Sept'18
0.050
1.3125 1.3125 1.3125 0.5625
52-Week
High
Low
Contract
High hilo
Low
Open
130.45
131.70
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
0.500
Commercial paper (AA financial)
Week Ended
Aug 25 Aug 18
Open
interest
Chg
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Oct
March'18
Fannie Mae
Effective rate 1.1700 1.1800 1.2000 0.3300
High
—52-WEEK—
High Low
Treasury bill auction
0.15
U.S. government rates
Prime rates
U.S.
Canada
Japan
0.25
1.50
—52-WEEK—
High Low
Overnight repurchase
International rates
Latest
0.25
1.50
Britain
Australia
Settle
Global Government Bonds: Mapping Yields
Borrowing Benchmarks | WSJ.com/bonds
Money Rates
Week
Latest ago
Sept
Dec
Total
return
close
Food
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=The Steel Index; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted.
*Data as of 8/25
Source: WSJ Market Data Group
Inflation
Contract
High hilo
Low
Open
Coffee (ICE-US)-37,500 lbs.; cents per lb.
Agriculture Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
3.0710
3.0765 s
3.0655
3.0650 0.0320
Aug
Dec
3.0620
3.1095 s
3.0595
3.0860 0.0295
Gold (CMX)-100 troy oz.; $ per troy oz.
1293.50 1311.30 s
1293.50 1309.70 17.20
Aug
Oct
1294.10 1314.00 s
1294.00 1311.80 17.30
Dec
1297.60 1317.80 s
1297.00 1315.30 17.40
Feb'18
1301.40 1321.20 s
1301.30 1318.90 17.40
June
1310.80 1328.70 s
1310.80 1326.10 17.60
Dec
1320.30 1339.20 s
1320.20 1336.90 17.80
Palladium (NYM) - 50 troy oz.; $ per troy oz.
Aug
885.00
885.00
885.00
936.60
3.15
Sept
929.75
939.10
928.00
934.20
3.15
Dec
924.85
936.10
923.50
932.35
5.90
March'18 920.35 929.45
920.35
928.35
6.55
Platinum (NYM)-50 troy oz.; $ per troy oz.
Aug
962.60
965.30
962.60
986.50 10.20
Oct
977.30
993.00
976.80
989.30 10.20
Silver (CMX)-5,000 troy oz.; $ per troy oz.
Aug
17.055
17.060
17.055
17.431 0.393
Dec
17.100
17.565
17.100
17.529 0.397
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
Oct
47.89
48.20
46.15
46.57 –1.30
Nov
48.23
48.47
46.58
46.96 –1.16
Dec
48.38
48.70
46.93
47.27 –1.07
Jan'18
48.71
48.91
47.22
47.52 –1.01
June
49.18
49.44
47.92
48.20 –0.88
Dec
49.40
49.64
48.25
48.51 –0.70
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
Sept
1.6500
1.6681
1.6256
1.6352 .0129
Oct
1.6427
1.6681
1.6229
1.6309 .0070
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
Sept
1.7601
1.7799
1.7036
1.7123 .0457
Oct
1.5830
1.6189
1.5625
1.5713 .0305
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
Sept
2.924
2.967
2.849
2.925
.033
Oct
2.950
2.998
2.880
2.961
.037
Nov
3.023
3.066
2.954
3.030
.033
Jan'18
3.247
3.300
3.200
3.269
.029
March
3.207
3.252
3.163
3.227
.026
April
2.898
2.921
2.869
2.906
.020
WSJ.com/commodities
-145.6
-56.8
-71.9
-117.1
-115.8
-67.8
-110.2
-111.4
-106.4
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
Issuer
Symbol Coupon (%)
American Express
Electronic Arts
Verizon Communications
Duke Realty
AXP
EA
VZ
DRE
2.600 Sept. 14, ’20
3.700 March 1, ’21
2.625 Aug. 15, ’26
3.875 Oct. 15, ’22
35 –14
50 –9
129 –9
85 –8
Glencore Canada
Alibaba Group Holding
NBCUniversal Media
Microsoft
GLENLN
BABA
CMCSA
MSFT
6.200
2.500
5.950
3.700
215
59
130
92
Maturity
June 15, ’35
Nov. 28, ’19
April 1, ’41
Aug. 8, ’46
Current
–7
–6
–6
–5
Last week
Stock Performance
Close ($)
% chg
54
n.a.
140
n.a.
85.41
118.73
48.61
29.30
–0.07
1.54
–0.14
–0.27
223
n.a.
133
98
...
168.30
…
72.83
...
–2.00
…
0.01
…And spreads that widened the most
Kinder Morgan
Apache
AstraZeneca
Bank of America
KMI
APA
AZN
BAC
3.050
4.750
2.375
5.000
Dec. 1, ’19
April 15, ’43
Nov. 16, ’20
May 13, ’21
97
205
68
61
11
6
6
6
n.a.
201
70
65
19.01
39.35
29.44
23.72
–0.83
–1.77
0.68
–0.21
Hess
Shire Acquisitions Investments Ireland Dac
Coca–Cola
Microsoft
HES
SHPLN
KO
MSFT
5.800
April 1, ’47
1.900 Sept. 23, ’19
2.200 May 25, ’22
3.300
Feb. 6, ’27
305
77
28
64
6
6
5
5
305
77
32
66
38.30
...
45.42
72.83
–0.52
...
–0.33
0.01
High-yield issues with the biggest price increases…
Coupon (%)
Maturity
Bond Price as % of face value
Current
One-day change
Issuer
Symbol
Tops Holding
McClatchy
Genworth Financial
RR Donnelley & Sons
TOMA
MNI
GNW
RRD
8.000 June 15, ’22
6.875 March 15, ’29
7.700 June 15, ’20
6.500 Nov. 15, ’23
71.000
76.500
100.245
98.039
CF Industries
Tenet Healthcare
DISH DBS
Foresight Energy
CF
THC
DISH
FELP
5.150 March 15, ’34
6.000
Oct. 1, ’20
5.875 Nov. 15, ’24
11.500
April 1, ’23
94.500
107.278
107.750
90.750
3.50
2.00
1.87
1.79
1.13
1.09
1.00
1.00
Last week
Stock Performance
Close ($)
% chg
75.250
71.500
100.250
n.a.
...
7.42
3.41
9.18
...
–0.54
–0.29
4.08
93.688
106.250
105.750
92.620
29.03
17.48
…
3.99
0.17
5.94
…
–0.25
82.750
81.000
93.500
77.250
13.25
...
6.67
4.16
3.68
...
–2.49
–4.15
96.500
100.375
97.750
101.000
3.65
21.90
13.05
18.31
–3.69
–9.69
1.16
6.33
…And with the biggest price decreases
Frontier Communications
Fresh Market
Nabors Industries
Sanchez Energy
FTR
TFM
NBR
SN
Chesapeake Energy
Ingles Markets
AMC Entertainment Holdings
Hertz
CHK
IMKTA
AMC
HTZ
11.000 Sept. 15, ’25
9.750
May 1, ’23
5.500 Jan. 15, ’23
6.125 Jan. 15, ’23
8.000
5.750
6.125
7.625
June 15, ’27
June 15, ’23
May 15, ’27
June 1, ’22
86.000 –3.61
76.000
92.250
77.000
94.938
98.559
95.500
99.750
–1.88
–1.03
–1.00
–0.81
–0.77
–0.75
–0.75
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
THE WALL STREET JOURNAL.
Tuesday, August 29, 2017 | B9
BIGGEST 1,000 STOCKS
WSJ.com/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.
Monday, August 28, 2017
Stock
Net
Sym Close Chg
NYSE
ABB
ABB 23.07
AES
AES 11.19
Aflac
AFL 80.80
AT&T
T
37.94
AbbottLabs ABT 50.26
AbbVie
ABBV 73.32
Accenture ACN 129.24
AcuityBrands AYI 174.79
Adient
ADNT 68.01
AdvanceAuto AAP 94.66
AdvSemiEngg ASX 6.10
Aegon
AEG 5.84
AerCap
AER 49.20
Aetna
AET 156.53
AffiliatedMgrs AMG 173.99
s AgilentTechs A
63.46
AgnicoEagle AEM 49.60
Agrium
AGU 96.30
AirProducts APD 145.78
AlaskaAir ALK 74.31
Albemarle ALB 115.43
s Alcoa
AA 42.17
AlexandriaRealEst ARE 119.30
Alibaba
BABA 168.30
Alleghany Y
563.49
Allegion
ALLE 78.05
Allergan
AGN 223.94
AllianceData ADS 223.68
AllianceBernstein AB 23.30
s AlliantEnergy LNT 43.08
Allstate
ALL 90.65
AllyFinancial ALLY 22.20
AlticeUSA ATUS 31.05
Altria
MO 63.93
AlumofChina ACH 17.25
Ambev
ABEV 6.23
s Ameren
AEE 60.57
AmericaMovil AMX 18.74
AmericaMovil A AMOV 18.56
AmCampus ACC 47.03
s AEP
AEP 74.10
AmericanExpress AXP 85.41
AmericanFin AFG 101.51
AmerHomes4Rent AMH 22.30
AIG
AIG 60.66
s AmerTowerREIT AMT 145.78
AmerWaterWorks AWK 82.00
Amerigas APU 43.11
Ameriprise AMP 137.75
AmerisourceBrgn ABC 78.66
Ametek
AME 62.38
Amphenol APH 79.75
t AnadarkoPetrol APC 41.27
Andeavor ANDV 98.55
AB InBev BUD 115.81
AnnalyCap NLY 12.43
AnteroMidstream AM 32.22
AnteroResources AR 19.62
Anthem
ANTM 193.48
Aon
AON 138.38
t Apache
APA 39.35
ApartmtInv AIV 45.51
ApolloGlobalMgmt APO 28.91
AquaAmerica WTR 33.87
Aramark
ARMK 40.27
ArcelorMittal MT 26.54
ArcherDaniels ADM 41.77
Arconic
ARNC 25.17
AristaNetworks ANET 174.11
ArrowElec ARW 77.18
AstraZeneca AZN 29.44
Athene
ATH 53.36
AtmosEnergy ATO 88.69
Autohome ATHM 63.18
Autoliv
ALV 105.93
AutoZone AZO 525.40
Avalonbay AVB 188.33
s Avangrid
AGR 48.90
AveryDennison AVY 93.30
AxaltaCoating AXTA 29.28
BB&T
BBT 46.14
BCE
BCE 47.57
BHPBilliton BHP 42.83
BHPBilliton BBL 37.49
BP
BP 34.47
BRF
BRFS 13.29
BT Group BT 19.03
BakerHughes BHGE 33.25
Ball
BLL 39.08
BancoBilbaoViz BBVA 8.90
s BancodeChile BCH 88.36
s BancoMacro BMA 107.82
BcoSantChile BSAC 29.65
BancoSantander SAN 6.50
BanColombia CIB 44.07
BankofAmerica BAC 23.72
BankofMontreal BMO 73.88
BankNY Mellon BK 52.27
BkNovaScotia BNS 61.91
Barclays
BCS 9.94
Bard CR
BCR 319.52
BarrickGold ABX 17.67
BaxterIntl BAX 61.64
BectonDickinson BDX 199.05
-0.24
-0.24
-0.11
-0.05
0.91
0.84
-0.15
-1.96
-0.29
-1.14
-0.03
-0.03
0.09
0.43
-0.89
0.56
2.13
-0.64
-0.23
-1.22
0.48
0.96
-1.19
-3.44
-6.74
0.43
2.13
1.66
-0.05
0.21
-1.37
-0.55
0.37
-0.15
...
-0.02
0.20
-0.14
-0.21
-0.38
0.53
-0.06
-0.88
-0.35
-0.12
1.54
0.04
-0.23
-0.86
0.56
-0.14
-0.04
-1.09
3.07
-0.68
0.05
-0.23
-0.06
0.80
0.33
-0.71
-0.24
-0.32
-0.13
0.33
...
0.02
-0.08
0.38
0.25
0.20
0.04
0.22
-0.52
-0.10
-3.55
-0.66
0.34
-0.37
0.14
-0.01
0.04
0.27
0.30
-0.07
-0.02
0.07
-0.01
-0.22
...
-0.65
1.96
-0.13
-0.03
-0.72
-0.05
-0.12
-0.38
-0.30
-0.06
0.74
0.53
0.13
0.48
Stock
Net
Sym Close Chg
Berkley
WRB 66.71 -0.78
BerkHathwy A BRK/A 268035-1726.00
BerkHathwy B BRK/B 178.70 -0.90
BerryGlobal BERY 55.69 -1.21
BestBuy
BBY 62.47 0.60
Bio-RadLab A BIO 216.93 1.09
BlackKnightFin BKFS 41.90 -0.15
BlackRock BLK 414.34 -2.03
BlackstoneGroup BX 31.95 0.38
BlockHR
HRB 29.61 -0.10
BoardwalkPipe BWP 14.54 -0.32
Boeing
BA 237.18 1.29
BorgWarner BWA 44.25 0.09
BostonProperties BXP 120.25 -1.21
BostonScientific BSX 26.97 0.25
Braskem
BAK 24.06 0.46
Bristol-Myers BMY 58.58 0.21
BritishAmTob BTI 61.91 0.16
BrixmorProp BRX 18.73 -0.50
BroadridgeFinl BR 76.91 0.04
BrookfieldMgt BAM 39.27 -0.25
BrookfieldInfr BIP 43.77 -0.02
Brown&Brown BRO 45.16 0.87
Brown-Forman A BF/A 52.59 -0.47
Brown-Forman B BF/B 50.04 -0.37
BuckeyePtrs BPL 55.59 -0.27
Bunge
BG 74.58 -0.95
BurlingtonStores BURL 87.20 -0.85
CBD Pao
CBD 23.18 0.06
CBRE Group CBG 35.50 0.14
CBS A
CBS/A 64.19 -0.34
CBS B
CBS 63.75 -0.14
CF Industries CF 29.03 0.05
CGI Group GIB 49.74 -0.20
CIT Group CIT 44.90 -0.27
CMS Energy CMS 48.63 0.13
CNA Fin
CNA 49.46 -1.05
CNOOC
CEO 120.83 -0.39
CPFLEnergia CPL 17.11 -0.03
CRH
CRH 34.81 -0.30
CVS Health CVS 75.46 0.11
CabotOil
COG 24.76 -0.09
CAE
CAE 15.98 -0.19
CamdenProperty CPT 89.37 -0.85
t CampbellSoup CPB 50.74 -0.66
CIBC
CM 84.39 -0.49
CanNtlRlwy CNI 79.26 -0.30
CanNaturalRes CNQ 30.87 -0.09
CanPacRlwy CP 152.75 -0.31
Canon
CAJ 34.80 -0.05
CapitalOne COF 80.55 -0.94
CardinalHealth CAH 66.39 0.31
Carlisle
CSL 94.24 -0.40
CarMax
KMX 63.48 -0.91
Carnival
CCL 68.55 0.38
Carnival
CUK 69.17 0.36
Caterpillar CAT 115.07 -0.28
Celanese A CE 97.55 -0.45
Cemex
CX
9.12 -0.01
CenovusEnergy CVE 7.38 -0.06
Centene
CNC 86.34 0.44
s CenterPointEner CNP 29.93 0.20
CentraisElBras EBR 6.10 -0.16
CenturyLink CTL 20.74 0.51
Chemours CC 47.72 0.10
Chevron
CVX 107.76 -0.47
ChinaEastrnAir CEA 27.08 0.61
ChinaLifeIns LFC 16.25 0.05
ChinaMobile CHL 56.09 -0.06
ChinaPetrol SNP 75.03 0.03
ChinaSoAirlines ZNH 37.80 0.22
ChinaTelecom CHA 49.65 0.82
ChinaUnicom CHU 14.62 -0.23
Chipotle
CMG 312.02 3.23
Chubb
CB 141.78 -1.85
ChunghwaTelecom CHT 34.52 0.13
Church&Dwight CHD 49.74
...
s Cigna
CI 180.50 1.20
CimarexEnergy XEC 99.57 0.01
Citigroup
C
67.81 -0.04
CitizensFin CFG 33.47 -0.38
Clorox
CLX 137.50 0.02
Coach
COH 41.90 0.02
Coca-Cola KO 45.42 -0.15
Coca-Cola Euro CCE 42.93 0.09
Coca-Cola Femsa KOF 84.49 -0.51
Colgate-Palmolive CL 70.90 -0.25
ColonyNorthStar CLNS 12.95 -0.02
Comerica
CMA 69.24 -1.08
SABESP
SBS 9.80 -0.03
t ConagraBrands CAG 32.53 -0.61
t ConchoRscs CXO 108.94 -0.50
ConocoPhillips COP 43.05 -0.53
ConEd
ED 84.59 0.11
ConstBrands A STZ 197.88 -0.44
ContinentalRscs CLR 33.05 -0.58
Cooper
COO 247.63 1.30
Corning
GLW 28.76 0.10
Coty
COTY 16.09 -0.31
Credicorp
BAP 202.77 -3.25
CreditSuisse CS 14.99 -0.02
CrestwoodEquity CEQP 24.35 -0.25
CrownCastle CCI 107.05 0.06
CrownHoldings CCK 57.09 -0.08
Cullen/Frost CFR 85.23 -0.83
Cummins
CMI 152.71 0.61
s DTE Energy DTE 112.14 0.64
DXC Tech DXC 84.79 -0.09
Stock
Net
Sym Close Chg
Danaher
DHR 82.37
Darden
DRI 84.84
DaVita
DVA 57.32
Deere
DE 115.96
s DellTechnologies DVMT 72.80
DelphiAutomotive DLPH 94.49
DeltaAir
DAL 46.95
DeutscheBank DB 16.40
DevonEnergy DVN 30.93
Diageo
DEO 132.42
DigitalRealty DLR 117.57
DiscoverFinSvcs DFS 59.10
Disney
DIS 102.56
DollarGeneral DG 77.37
DominionEner D
80.14
Domino's
DPZ 178.76
Donaldson DCI 46.59
DouglasEmmett DEI 38.09
Dover
DOV 84.48
DowChemical DOW 64.67
DrPepperSnap DPS 90.34
DrReddy'sLab RDY 31.76
DuPont
DD 82.88
DukeEnergy DUK 87.42
DukeRealty DRE 29.30
ENI
E
31.45
t EOG Rscs EOG 83.40
EQT
EQT 60.83
EQT Midstream EQM 74.27
EastmanChem EMN 85.43
Eaton
ETN 70.44
EatonVance EV 46.97
Ecolab
ECL 131.46
Ecopetrol
EC
9.09
EdisonInt
EIX 80.86
EdwardsLife EW 113.11
EmersonElectric EMR 58.40
EnbridgeEnPtrs EEP 14.28
Enbridge
ENB 39.90
Encana
ECA 9.03
EnelAmericas ENIA 10.64
s EnelChile
ENIC 5.86
s EnelGenChile EOCC 25.46
EnergyTrfrEquity ETE 16.86
EnergyTransfer ETP 18.45
Entergy
ETR 79.84
EnterpriseProd EPD 25.48
EnvisionHlthcr EVHC 51.53
Equifax
EFX 140.62
EquityLife ELS 88.58
EquityResdntl EQR 67.37
EssexProp ESS 266.07
EsteeLauder EL 105.96
EverestRe RE 252.89
EversourceEner ES 63.27
Exelon
EXC 38.27
ExtraSpaceSt EXR 77.27
ExxonMobil XOM 76.47
FMC
FMC 84.54
FactSet
FDS 157.20
FederalRealty FRT 125.41
FedEx
FDX 208.84
Ferrari
RACE 113.83
FiatChrysler FCAU 14.91
s FibriaCelulose FBR 13.04
FidelityNatlFin FNF 47.44
FNFV Group FNFV 16.60
FidelityNtlInfo FIS 91.79
58.com
WUBA 63.75
FirstData
FDC 18.31
FirstRepBank FRC 97.83
FirstEnergy FE 32.80
FleetCorTech FLT 143.06
FomentoEconMex FMX 100.22
FordMotor F
10.79
ForestCIty A FCE/A 23.74
Fortis
FTS 36.69
Fortive
FTV 64.49
FortBrandsHome FBHS 61.95
s Franco-Nevada FNV 81.79
FranklinRscs BEN 42.60
Freeport-McMoRan FCX 15.53
FreseniusMed FMS 46.83
GGP
GGP 20.73
Gallagher AJG 58.30
Gap
GPS 23.39
Gartner
IT 118.84
Gazit-Globe GZT 9.94
GeneralDynamics GD 197.87
GeneralElec GE 24.47
GeneralMills GIS 54.28
GeneralMotors GM 35.51
Genpact
G
28.31
GenuineParts GPC 82.95
Gerdau
GGB 3.59
Gildan
GIL 30.92
GlaxoSmithKline GSK 39.46
GlobalPayments GPN 93.87
GoDaddy
GDDY 42.72
Goldcorp
GG 13.49
GoldmanSachs GS 220.35
Graco
GGG 114.26
t Grainger
GWW 156.25
GreatPlainsEner GXP 31.22
GpoAeroportuar PAC 111.22
GpoAeroportSur ASR 199.41
s GpoAvalAcciones AVAL 9.00
0.21
1.16
0.09
0.12
1.06
0.23
0.27
-0.02
-0.23
-0.12
-0.57
-0.59
0.15
-0.30
0.06
0.03
-0.34
-0.29
-0.79
0.13
...
0.05
0.22
0.19
-0.08
0.17
-1.11
-0.23
-0.72
0.56
-0.26
-0.03
0.42
-0.15
0.11
1.35
-0.16
0.03
-0.49
-0.12
0.01
0.27
2.48
-0.04
-0.11
-0.01
-0.38
-0.52
-0.08
-0.12
-0.57
0.42
-0.54
-7.35
0.19
-0.03
0.37
-0.25
0.24
-2.07
-2.91
1.08
-0.17
0.06
-0.01
-0.61
0.30
0.45
-3.58
0.15
-0.32
0.11
0.63
-0.10
-0.03
-0.16
-0.12
-0.20
-0.40
2.21
-0.07
0.24
-0.14
-0.30
-0.08
-0.38
0.09
0.01
-1.18
-0.02
-0.74
-0.09
-0.08
-0.35
0.01
0.08
-0.01
0.52
0.24
0.42
-2.12
0.84
-3.54
0.13
-0.21
-3.75
-0.23
New Highs and Lows | WSJ.com/newhighs
Monday, August 28, 2017
52-Wk %
Sym Hi/Lo Chg Stock
NYSE highs - 89
AXIS CapPfdE AXSpE
AcornIntl
ATV
AgilentTechs
A
Alcoa
AA
Allete
ALE
AlliantEnergy LNT
Ameren
AEE
AEP
AEP
AmerTowerPfdB AMTpB
AmerTowerREIT AMT
Avangrid
AGR
BancodeChile BCH
BancoMacro
BMA
BankofAmPfdD BACpD
BiohavenPharm BHVN
BlkRkUtility
BUI
BrookfieldRenew BEP
CAI Intl
CAI
CampingWorld CWH
CenterPointEner CNP
Ctrl&EasternEurFd CEE
CharlesRiverLabs CRL
ChimeraFixFltPfdB CIMpB
ChinaFund
CHN
Cigna
CI
CityOfficePfdA CIOpA
Coresite
COR
DTE Energy
DTE
DellTechnologies DVMT
DNB Select
DNP
ElPasoElectric EE
EmbotellAndinaB AKO/B
EnelChile
ENIC
EnelGenChile EOCC
FarmlandPtrsPfdB FPIpB
FibriaCelulose FBR
Franco-Nevada FNV
GettyRealty
GTY
GreenDot
GDOT
GpoAvalAcciones AVAL
GpFinSantandMex BSMX
GuidewireSoftware GWRE
HalyardHealth HYH
Harris
HRS
IamGold
IAG
iStarFnl pfE
STARpE
iStarPfdI
STARpI
KirklandLakeGold KL
LumberLiqu
LL
MSCI
MSCI
MiXTelematics MIXT
MonmouthRealEst MNR
MS EmMktFd MSF
NextEraEnergyUn NEEpQ
NiaMoPwr pfC NMKpC
NiSource
NI
NorthwestNatGas NWN
OFGBancorpPfA OFGpA
ONE Gas
OGS
OsiskoGoldRoyal OR
OwensCorning OC
PG&E
PCG
PNM Resources PNM
ParTechnology PAR
PennyMacPfdB PMTpB
PinnacleWest PNW
PublicStoragePfdG PSApG
RedHat
RHT
ServiceMaster SERV
SoCopper
SCCO
25.39
15.69
63.58
42.26
77.30
43.13
60.66
74.11
128.95
146.12
49.04
89.91
108.15
26.25
38.00
21.45
35.84
30.62
37.13
29.95
23.71
106.44
26.25
20.75
181.56
26.47
116.81
112.35
73.16
11.43
55.65
29.28
5.93
25.53
27.20
13.13
81.79
27.80
48.27
9.27
10.82
73.93
44.08
122.37
6.35
25.60
25.40
12.60
39.29
115.37
9.66
15.91
17.20
68.91
105.00
27.25
66.25
25.70
75.55
13.76
71.77
70.44
42.95
11.09
25.16
90.47
25.04
105.92
46.25
41.77
...
2.2
0.9
2.3
0.3
0.5
0.3
0.7
1.0
1.1
0.7
-0.7
1.9
0.1
9.6
-0.5
0.5
6.2
-1.1
0.7
1.2
0.7
0.3
-0.1
0.7
2.8
0.6
0.6
1.5
-0.1
-0.1
4.3
4.8
10.8
0.9
-0.1
2.8
-1.9
0.3
-2.5
-0.9
2.1
1.1
1.4
3.4
0.2
0.3
1.2
4.4
-0.2
-1.7
-1.5
...
1.0
0.3
-0.1
0.6
-1.5
0.1
1.0
0.4
0.3
-0.4
-0.7
...
0.5
0.1
0.2
...
2.6
52-Wk %
Sym Hi/Lo Chg Stock
52-Wk %
Sym Hi/Lo Chg
78.00 -0.1 TortoiseMLPFund NTG
Spire
SR
SwiftTransport SWFT 27.81 2.9 VaalcoEnergy EGY
TaiwanFund
21.38 -0.3 Vipshop
TWN
VIPS
31.71 5.4 VitaminShoppe VSI
TelecomArgentina TEO
22.37 0.8
TempltnDrgn TDF
67.70 1.7
TotalSystem
TSS
TremorVideo TRMR 3.47 4.3
ALPSEmgDivDogs EDOG
24.73 ...
Triple-S Mgmt GTS
ARKGenomicRev ARKG
9.69 0.1
TurkcellIletism TKC
ARKInnovationETF ARKK
10.29 -0.2
TurkishFd
TKF
CSOPChinaCSI300AH HAHA
Unilever
59.72 0.3
UN
CSOPFTSEChinaA50 AFTY
58.41 0.2
Unilever
UL
CambriaGlbMomentum GMOM
Vedanta
VEDL 19.29 0.6
CambriaGlbValue GVAL
22.80 1.3
VishayPrecision VPG
ColumbiaBeyBRICs BBRC
VMware
VMW 105.59 1.9
ColumbiaEMQualDiv HILO
27.25 0.9
WarriorMetCoal HCC
CurrShEuro
FXE
76.36 0.5
WasteMgt
WM
CurrShSEK
FXS
75.18 2.1
WestlakeChem WLK
Cushing30ETN PPLN
Xylem
61.39 1.1
XYL
DeutscheXHarCSI300 ASHR
DeutscheXAllChina CN
DirexCSI300CnABl2 CHAU
40.72 -2.6 DirexEMBdBull3X EMBU
AnadarkoPetrol APC
38.82 -1.8 DirexChinaBl3 YINN
Apache
APA
2.52 -0.4 DirexUtilBl3X UTSL
AvonProducts AVP
30.35 -0.8 ETFMG DroneEcon IFLY
B&G Foods
BGS
14.32 -2.5 ETFS PlldmShr PALL
BasicEnergySvcs BAS
40.87 -1.3 FidelityMSCIUtils FUTY
Bemis
BMS
BillBarrett
2.73 -3.8 FlexShIntQuDivDyn IQDY
BBG
23.90 -4.8 FranklinLibEM FLQE
BonanzaCreekEner BCEI
31.66 -0.8 GlbXBrazilConsumer BRAQ
BrinkerIntl
EAT
CONE Midstream CNNX 16.30 -2.0 GlbX BrazilMC BRAZ
2.62 1.1 GlbX ChinaFinls CHIX
CVR Partners UAN
50.33 -1.3 GlbXFTSENordReg GXF
CampbellSoup CPB
3.59 -3.7 GlbXMSCIColombia GXG
ChesapeakeEner CHK
32.74 -0.6 GlbXNextEmerging EMFM
Cinemark
CNK
7.94 -0.7 GuggFronMkts FRN
ClearBridgeAmEn CBA
1.75 -7.6 GuggS&P500EWUtil RYU
CobaltIntlEner CIE
32.47 -1.8 GuggMSCIEMEq EWEM
ConagraBrands CAG
ConchoRscs
CXO 107.21 -0.5 iPathBloomAlumTR JJU
87.22 -2.0 iPathBloomCopperTR JJC
CoreLabs
CLB
6.53 -2.5 iPathBlmIndMetalTR JJM
CrescentPoint CPG
10.75 -1.0 iPathPBCopper CUPM
DeanFoods
DF
0.91 -6.5 iShModAllocation AOM
DenburyRscs DNR
82.25 -1.3 iShEmgMktDividend DVYE
EOG Rscs
EOG
2.78 -7.3 iShJPM EM LC Bd LEMB
EP Energy
EPE
EastmanKodakWt KODK/WS 0.12 -32.0 iShMSCIAllPeruCap EPU
46.03 -0.2 iShMSCIEmgMktSC EEMS
FreshDelMonte FDP
Grainger
GWW 155.00 -2.2 iShMSCIFrontier100 FM
42.77 -2.9 iShMSCIItalyCapped EWI
Helmerich&Payne HP
Hess Pfd
HESpA 48.58 ... iShMSCIJapanSC SCJ
37.41 -0.5 iShMSCIPolandCap EPOL
Hess
HES
IndependenceContr ICD
2.91 -2.9 iShMSCIThailandCap THD
0.86 -8.6 iShGlobalUtilities JXI
JonesEnergy
JONE
22.28 -1.7 iShChinaLC
MurphyOil
MUR
FXI
Netshoes
NETS 11.51 -4.4 KraneBoseraChinaA KBA
22.99 -1.0 PIMCOEnhShMaturity MINT
NobleEnergy
NBL
NuvCreditOpp2022 JCO
9.83 -0.5 PwrShCNYDimSum DSUM
6.88 -2.9 PwrShDB USDBear UDN
OasisPetrol
OAS
0.45 -3.3 PwrShFTSE EM PXH
PacificDrilling PACD
24.24 -1.5 PwrShS&PEMLowVol EELV
ParsleyEnergy PE
PioneerNatRscs PXD 125.93 -0.6 ProShUlt Euro ULE
2.46 -2.3 ProShXinhuaChina25 XPP
PrecisionDrilling PDS
12.63 -2.7 ProShUltraHY UJB
SM Energy
SM
4.08 -4.1 REXGoldHdgS&P500 GHS
SanchezEnergy SN
6.60 -2.8 SPDRBloomBarEMLoBd EBND
Smart&FinalStores SFS
Smucker
SJM 104.15 0.2 SPDRBloomBarInCpBd IBND
35.57 -1.1 SPDRBloomBarSTInTr BWZ
StewartInfo
STC
7.98 -2.2 SPDRCitiIntGovBd WIP
SuperiorEnergy SPN
19.49 -2.2 SPDREmMktSmlCp EWX
Supervalu
SVU
19.68 0.4 Whiskey&SpiritsETF WSKY
TejonRanch
TRC
TevaPharm
TEVA 15.72 -1.7 USGlbGOGold GOAU
27.35 -0.9 USCopperIndex CPER
TortoiseEnerInf TYG
17.23
0.68
8.72
5.12
-0.6
-4.4
-1.3
-4.5
NYSE Arca highs - 81
NYSE lows - 55
25.24
23.99
32.33
31.94
17.19
26.15
25.49
18.42
15.09
115.80
120.35
21.39
29.58
35.39
26.74
25.54
30.04
31.14
34.04
89.74
36.00
27.63
32.02
16.66
11.20
17.45
23.65
10.38
23.30
14.55
90.24
34.05
18.60
35.29
28.47
33.96
37.70
42.72
48.49
37.41
49.06
30.85
30.50
72.89
27.73
81.13
52.20
44.38
33.28
101.81
23.38
22.55
21.89
25.19
17.70
75.75
66.57
31.65
29.99
35.22
32.49
57.90
49.37
30.70
13.17
19.88
0.1
5.3
2.1
2.8
1.5
0.3
0.4
-0.5
0.1
0.4
0.2
0.2
1.7
0.4
3.2
1.0
0.1
0.9
0.5
1.0
0.1
0.1
0.2
1.0
-0.9
-0.1
0.4
-0.8
0.4
0.2
0.1
...
-0.1
1.1
1.4
1.4
0.1
0.2
-0.1
0.8
0.2
0.4
0.4
0.2
2.9
0.9
0.3
...
1.7
...
0.7
0.4
-0.1
0.4
0.7
0.2
0.7
2.1
...
0.5
0.6
0.1
0.3
-0.2
3.9
1.1
Net
Sym Close Chg
s GpFinSantandMex BSMX 10.65 -0.10
GrupoTelevisa TV 26.04 -0.29
HCA Healthcare HCA 79.16 -0.35
HCP
HCP 29.28 -0.26
HDFC Bank HDB 95.91 0.01
HP
HPQ 19.18 -0.13
HSBC
HSBC 47.88 0.11
Halliburton HAL 38.79 -0.22
Hanesbrands HBI 24.51 0.24
HarleyDavidson HOG 47.06 -0.66
s Harris
HRS 121.33 1.67
HartfordFinl HIG 54.49 -0.54
HealthcareAmer HTA 30.41 -0.26
Heico
HEI 83.25 -1.10
Heico A
HEI/A 71.90 -0.45
Herbalife
HLF 68.81 -0.08
Hershey
HSY 104.47 -0.69
t Hess
HES 38.30 -0.20
HewlettPackard HPE 17.79 -0.16
Hilton
HLT 63.17 -0.31
HomeDepot HD 151.39 1.74
HondaMotor HMC 27.81 -0.16
Honeywell HON 136.87 0.05
HormelFoods HRL 31.05 -0.29
DR Horton DHI 35.31 -0.47
HostHotels HST 17.53 -0.17
HuanengPower HNP 25.80
...
Hubbell
HUBB 110.29 -0.18
Humana
HUM 255.07 2.07
HuntingtonIngalls HII 206.12 -2.82
Huntsman HUN 26.67 0.10
HyattHotels H
57.97 0.15
ICICI Bank IBN 9.38 -0.06
ING Groep ING 17.85 -0.01
Invesco
IVZ 32.45 -0.32
IDEX
IEX 115.02 0.52
IllinoisToolWks ITW 136.53 -0.28
Infosys
INFY 15.31 0.16
Ingersoll-Rand IR
83.86 -0.77
Ingredion
INGR 123.57 1.20
ICE
ICE 65.30 -0.11
InterContinentl IHG 49.66
...
IBM
IBM 142.51 -1.23
IntlFlavors IFF 136.14 0.22
IntlPaper
IP
53.86 -0.73
Interpublic IPG 20.27 0.07
InvitationHomes INVH 22.84 -0.05
IronMountain IRM 39.06 0.59
IsraelChemicals ICL
4.33 -0.03
ItauUnibanco ITUB 12.87 -0.15
JPMorganChase JPM 91.60 -0.29
Jabil
JBL 30.41 0.11
JacobsEngineering JEC 52.23 0.29
JamesHardie JHX 14.18 -0.07
JanusHenderson JHG 35.13 -0.15
J&J
JNJ 131.74 0.06
JohnsonControls JCI 38.84 0.01
JonesLangLaSalle JLL 120.86 1.46
JuniperNetworks JNPR 27.53 -0.01
KAR Auction KAR 44.49 -0.20
KB Fin
KB 50.51 -0.12
KKR
KKR 18.65 0.21
KT
KT 17.16 0.22
KSCitySouthern KSU 103.46 -0.91
Kellogg
K
66.78 -0.93
KeyCorp
KEY 17.39 -0.20
KeysightTechs KEYS 39.86 0.04
KilroyRealty KRC 67.67 -1.18
KimberlyClark KMB 122.37 0.85
KimcoRealty KIM 19.39 -0.46
KinderMorgan KMI 19.01 -0.16
KinrossGold KGC 4.40 0.15
Kohl's
KSS 39.55 0.33
KoninklijkePhil PHG 38.35 -0.01
KoreaElcPwr KEP 19.65 0.01
Kroger
KR 21.72 -0.02
Kyocera
KYO 60.74 -0.06
LATAMAirlines LTM 12.28 -0.03
L Brands
LB 36.45 -0.11
LG Display LPL 13.72 -0.03
LINE
LN 35.10 -0.06
L3 Tech
LLL 178.90 -0.32
LabCpAm LH 153.22 -1.55
LambWeston LW 44.88 -0.16
LasVegasSands LVS 60.28 0.16
Lazard
LAZ 42.53 0.34
Lear
LEA 144.02 -0.52
Leggett&Platt LEG 44.96 -0.36
Leidos
LDOS 55.90 0.04
Lennar A
LEN 50.92 -0.69
Lennar B
LEN/B 42.49 -0.45
LennoxIntl LII 162.19 0.34
LeucadiaNatl LUK 24.04 -0.19
Level3Comm LVLT 55.02 0.73
LibertyProperty LPT 41.65 -0.51
EliLilly
LLY 78.84 0.05
LincolnNational LNC 67.90 -0.28
LionsGate A LGF/A 29.24 -0.36
LionsGate B LGF/B 27.78 -0.18
LiveNationEnt LYV 38.94 -0.34
LloydsBanking LYG 3.35 -0.01
LockheedMartin LMT 303.61 0.81
Loews
L
46.90 -0.52
Lowe's
LOW 73.80 0.45
LyondellBasell LYB 90.32 0.06
M&T Bank MTB 152.00 -1.80
MGM Resorts MGM 31.69 -0.14
MPLX
MPLX 33.60 -0.23
s MSCI
MSCI 113.99 -0.27
Macerich
MAC 53.08 -1.18
MacquarieInfr MIC 72.44 -0.45
Macy's
M
21.16 0.05
MagellanMid MMP 65.97 -0.72
MagnaIntl MGA 46.81 -0.95
Manpower MAN 109.74 0.65
ManulifeFin MFC 19.68 -0.18
MarathonOil MRO 10.92 -0.13
MarathonPetrol MPC 52.52 0.80
Markel
MKL 1040.24-14.35
Marsh&McLennan MMC 77.44 0.48
MartinMarietta MLM200.35 4.81
Masco
MAS 36.30 -0.01
Mastercard MA 133.85 1.10
McCormick MKC 94.65 -0.26
McCormickVtg MKC/V 94.93 -0.06
McDonalds MCD 159.67 0.85
McKesson MCK 148.33 0.75
Medtronic MDT 79.59 0.53
Merck
MRK 63.32 0.38
MetLife
MET 47.57 -0.42
Stock
The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in
the latest session. % CHG-Daily percentage change from the previous trading session.
Stock
Stock
23.36
46.17
15.22
27.19
25.68
25.61
21.16
53.08
25.59
25.50
19.18
29.45
44.09
48.84
56.31
0.8
2.0
-0.1
0.4
0.1
1.6
2.8
-0.1
0.2
0.2
-0.1
-0.4
0.5
0.2
-0.2
NYSE Arca lows - 12
DirexCSI300CnA CHAD
DirexGoldMinBr3 DUST
DirexS&PBiotchBr1 LABS
iPathBloomGrainsTR JJG
PwrShDB G10 DBV
PwrShDB USDBull UUP
ProShUltShEuro EUO
ProShUltShGoldMin GDXS
TeucriumCornFund CORN
TeucriumWheatFund WEAT
VanEckUnOil&Gas FRAK
VelocityShVIXTail BSWN
33.20 -1.4
22.64 -10.1
27.12 -3.3
25.07 -0.8
23.79 -0.3
23.90 -0.3
21.09 -0.7
13.43 -7.1
17.37 -0.4
6.37 -1.2
12.70 -1.5
18.92 -0.3
NYSE American highs - 4
USAS
BKJ
ELMD
UQM
3.93
18.10
7.16
1.05
8.3
1.7
6.4
10.7
NYSE American lows - 6
0.40 -6.9
BlonderTongueLab BDR
4.43 -1.5
ContangoO&G MCF
21.96 2.1
Espey
ESP
1.93 -4.4
GranTierraEner GTE
InspireMD Wt NSPR/WS 0.00 -93.1
0.53 -0.7
RMRRealEstIncmFdRt RIFr
Nasdaq highs - 67
AVEO Pharma AVEO
AkceaTherap AKCA
AkebiaTherap AKBA
ArbutusBiopharma ABUS
BioShBiotechClin BBC
BoingoWireless WIFI
CBOE Holdings CBOE
CadenceDesign CDNS
CapitalSouthwest CSWC
Cellectis
CLLS
CelsiusHldg
CELH
Clarus
CLAR
CommerceHub A CHUBA
Cutera
CUTR
Deswell
DSWL
eHealth
EHTH
ElectroScientific ESIO
EnantaPharma ENTA
Equinix
EQIX
ExtremeNetworks EXTR
FS Bancorp
FSBW
Ferroglobe
GSM
FT EM Alphadex FEM
FT EM SC Alpha FEMS
FT GerAlpha
FGM
FoxFactory
FOXF
FusionTelecom FSNN
GluMobile
GLUU
GoldenEnt
GDEN
HeritageCrystal HCCI
Hortonworks HDP
IXYS
IXYS
Icon
ICLR
4.24
19.75
16.97
4.20
26.23
20.30
100.44
37.86
17.42
29.64
4.95
7.55
21.60
36.55
2.89
24.73
12.38
45.00
468.86
11.21
50.57
13.95
26.50
41.85
46.40
39.90
2.59
3.50
23.37
19.85
16.29
22.50
109.98
1.1
6.6
2.2
7.7
4.0
1.3
0.4
1.0
1.1
17.0
2.9
4.9
2.9
0.4
3.0
1.8
2.9
2.4
-0.7
2.8
0.7
0.6
...
0.4
0.2
2.7
86.2
1.8
3.2
4.3
-0.7
40.4
1.5
Net
Sym Close Chg
MettlerToledo MTD 594.06 3.68
MichaelKors KORS 42.46 0.17
MidAmApt MAA 106.33 -0.76
MitsubishiUFJ MTU 5.99 -0.09
MizuhoFin MFG 3.42 -0.01
MobileTeleSys MBT 9.15 -0.13
Mobileye
MBLY 63.23 -0.02
MohawkIndustries MHK 247.12 0.06
MolsonCoors B TAP 89.49 -1.51
Monsanto MON 116.64 -0.21
Moody's
MCO 132.68 0.29
MorganStanley MS 45.48 -0.46
Mosaic
MOS 20.07 -0.30
MotorolaSolutions MSI 87.30 0.42
NRG Energy NRG 24.57 -0.01
NTTDoCoMo DCM 23.19 -0.12
NVR
NVR 2670.00-24.11
NationalGrid NGG 63.57 0.15
NatlOilwell NOV 30.34 -0.18
NatlRetailProp NNN 40.94 -0.63
NewOrientalEduc EDU 76.68 -1.11
NY CmntyBcp NYCB 12.01 -0.11
NewellBrands NWL 48.18 0.06
NewmontMining NEM 38.30 1.31
NextEraEnergy NEE 150.88 0.78
NielsenHoldings NLSN 39.36 -0.13
Nike
NKE 53.73 -0.17
s NiSource
NI
27.09 -0.02
t NobleEnergy NBL 23.41 -0.24
Nokia
NOK 6.21
...
NomuraHoldings NMR 5.54 -0.04
Nordstrom JWN 45.06 -0.28
NorfolkSouthern NSC 117.76 -0.45
NorthropGrumman NOC 267.90 -1.43
Novartis
NVS 83.33 -0.20
NovoNordisk NVO 46.80 0.67
Nucor
NUE 54.58 -0.13
NuSTAREnergy NS 39.00 -0.05
OGE Energy OGE 36.41 0.19
ONEOK
OKE 52.95 -0.71
OccidentalPetrol OXY 59.13 -0.09
Och-Ziff
OZM 2.89
...
OmegaHealthcare OHI 31.09 -0.20
Omnicom OMC 73.19 0.06
Oracle
ORCL 49.24
...
Orange
ORAN 16.94 0.08
OrbitalATK OA 107.35 0.16
Orix
IX
80.62 0.18
s OwensCorning OC 70.40 0.31
s PG&E
PCG 70.31 0.23
PLDT
PHI 34.40 0.40
PNC Fin
PNC 127.55 -0.33
POSCO
PKX 74.27 -0.21
PPG Ind
PPG 104.15 0.43
PPL
PPL 39.53 -0.06
PVH
PVH 126.23 0.33
PackagingCpAm PKG 109.06 -1.30
PaloAltoNtwks PANW 129.28 0.65
ParkHotels PK 25.84 -0.26
ParkerHannifin PH 158.41 1.11
t ParsleyEnergy PE 24.70 -0.38
Pearson
PSO 7.95
...
PembinaPipeline PBA 31.54 -0.38
Pentair
PNR 60.95 -0.56
PepsiCo
PEP 115.54 -0.31
PerkinElmer PKI 65.71 0.36
Perrigo
PRGO 78.37 0.95
PetroChina PTR 64.11 -0.49
PetroleoBrasil PBR 9.08 -0.09
PetroleoBrasilA PBR/A 8.73 -0.04
Pfizer
PFE 33.47 0.08
PhilipMorris PM 115.54 0.74
Phillips66 PSX 83.65 0.23
PinnacleFoods PF 59.05 -0.32
s PinnacleWest PNW 90.44 0.42
t PioneerNatRscs PXD 128.46 -0.74
PlainsAllAmPipe PAA 20.49 0.30
PlainsGP
PAGP 21.17 0.17
PolarisIndustries PII 93.67 -0.98
PostHoldings POST 82.10 -0.75
Potash
POT 17.16 -0.12
Praxair
PX 132.08 -0.34
PrincipalFin PFG 63.32 -0.01
Procter&Gamble PG 92.47 -0.04
Progressive PGR 47.31 -1.09
Prologis
PLD 62.43 -0.15
PrudentialFin PRU 102.68 -0.14
Prudential PUK 46.78 -0.11
PublicServiceEnt PEG 47.30 0.01
PublicStorage PSA 204.30 0.43
PulteGroup PHM 25.30 -0.01
QuestDiag DGX 107.04 0.02
QuintilesIMS Q
95.55 -3.27
RELX
RENX 20.75 -0.03
RELX
RELX 21.75 0.04
RPM
RPM 48.77 0.01
RalphLauren RL 87.23 0.03
RaymondJames RJF 78.42 -0.33
Raytheon RTN 178.24 0.21
RealtyIncome O
57.21 -0.83
s RedHat
RHT 105.59 0.26
RegencyCtrs REG 64.34 -1.41
RegionsFin RF 14.29 -0.16
ReinsuranceGrp RGA 134.44 -2.32
RenaissanceRe RNR 142.01 -2.60
RepublicServices RSG 64.39 0.02
ResMed
RMD 75.54 1.34
RestaurantBrands QSR 61.34 -0.03
RiceEnergy RICE 26.62 -0.10
RioTinto
RIO 48.03 0.34
RobertHalf RHI 44.10 0.06
Rockwell
ROK 159.57 -0.04
RockwellCollins COL 127.99 -1.10
RogersComm B RCI 51.60 -0.21
Rollins
ROL 44.82 0.06
RoperTech ROP 230.00 -0.76
RoyalBkCanada RY 74.45 -0.31
RoyalBkScotland RBS 6.66
...
RoyalCaribbean RCL 120.76 0.32
RoyalDutchA RDS/A 55.44 -0.23
RoyalDutchB RDS/B 56.85 -0.11
SAP
SAP 105.37 0.25
S&P Global SPGI 151.99 0.72
SINOPECShanghai SHI 60.32 0.16
SK Telecom SKM 25.85 0.04
SLGreenRealty SLG 96.83 -1.02
Salesforce.com CRM 93.66 -0.44
Sanofi
SNY 49.02 0.32
Sasol
SSL 29.98 0.11
Scana
SCG 60.59 0.51
52-Wk %
Sym Hi/Lo Chg Stock
VanEckBrazilSC BRF
VanEckCSI300 PEK
VanEckCoal
KOL
VanEckGreenBd GRNB
VanEckIntlHYBd IHY
VanEckOilRefin CRAK
VanEckPoland PLND
VanEckUranium NLR
WBITacticalIncome WBII
WisdTrChineseYuan CYB
WisdTrEmgCurr CEW
WisdTrEMxSOE XSOE
WisdTrEM HiDiv DEM
WisdTrEM SC DGS
WisdTrGlbxUSQual DNL
AmericasSilver
BancorpNJ
Electromed
UQM Tech
Stock
52-Wk %
Sym Hi/Lo Chg
Immunomedics IMMU
IntegratedMedia IMTE
iShESG1-5YCpBd SUSB
iShMSCIBrazilSC EWZS
iShMSCITurkeyETF TUR
iSh13YearIntlTBd ISHG
iShGlobalInfra IGF
JensynAcqn
JSYN
JohnsonOutdoors JOUT
JunoTherap
JUNO
KitePharma
KITE
LeggMasonEMDivCore EDBI
LeMaitreVascular LMAT
LindbladExped LIND
MaxPoint
MXPT
MidPennBancorp MPB
MustangBio
MBIO
MyoKardia
MYOK
NV5Global
NVEE
NationalBeverage FIZZ
Otelco
OTEL
Overstock
OSTK
PointerTel
PNTR
PwrShDWA Util PUI
PwrShS&PSC Util PSCU
PrimorisSvcs PRIM
RoyalGold
RGLD
SBA Comm
SBAC
Sigmatron
SGMA
TabulaRasaHlth TRHC
TiGenix
TIG
TimberlandBncp TSBK
WernerEnterprises WERN
ZAGG
ZAGG
Stock
Schlumberger SLB 63.45
SchwabC
SCHW 39.54
ScottsMiracleGro SMG 94.30
SealedAir SEE 44.26
SempraEnergy SRE 119.21
SensataTech ST 44.14
ServiceCorp SCI 35.16
s ServiceMaster SERV 45.91
ServiceNow NOW 111.91
ShawComm B SJR 22.02
SherwinWilliams SHW 338.92
ShinhanFin SHG 47.15
Shopify
SHOP 103.79
SimonProperty SPG 156.83
SmithAO
AOS 54.17
Smith&Nephew SNN 35.87
t Smucker
SJM 105.40
Snap
SNAP 15.19
SnapOn
SNA 144.76
SOQUIMICH SQM 47.20
Sony
SNE 38.48
Southern
SO 48.35
s SoCopper SCCO 41.77
SouthwestAirlines LUV 51.75
SpectraEnerPtrs SEP 43.62
SpectrumBrands SPB 107.42
SpiritAeroSys SPR 71.71
Sprint
S
8.29
Square
SQ 24.91
StanleyBlackDck SWK 138.67
StarwoodProp STWD 22.15
StateStreet STT 92.90
Statoil
STO 18.65
Steris
STE 85.22
STMicroelec STM 17.23
Stryker
SYK 139.57
SumitomoMits SMFG 7.39
SunCommunities SUI 89.67
SunLifeFinancial SLF 38.23
SuncorEnergy SU 31.16
SunTrustBanks STI 55.77
SynchronyFin SYF 30.29
Syngenta SYT 91.99
Sysco
SYY 52.14
TAL Education TAL 28.03
TE Connectivity TEL 77.77
Telus
TU 35.87
Ternium
TX 30.62
TIM Part
TSU 18.00
TJX
TJX 71.80
TableauSoftware DATA 71.68
TaiwanSemi TSM 36.77
TargaResources TRGP 43.28
Target
TGT 54.44
TataMotors TTM 29.82
TechnipFMC FTI 25.50
TeckRscsB TECK 25.02
s TelecomArgentina TEO 31.10
TelecomItalia TI
9.79
TelecomItalia A TI/A 7.79
Teleflex
TFX 207.38
TelefonicaBras VIV 15.58
Telefonica TEF 10.83
TelekmIndonesia TLK 35.71
Tenaris
TS 26.92
Teradyne
TER 34.86
t TevaPharm TEVA 15.93
Textron
TXT 48.09
ThermoFisherSci TMO 178.43
ThomsonReuters TRI 45.36
ThorIndustries THO 108.71
3M
MMM 202.46
Tiffany
TIF 89.35
TimeWarner TWX 101.70
Toll Bros
TOL 37.88
Torchmark TMK 77.21
Toro
TTC 60.69
TorontoDomBk TD 51.72
Total
TOT 51.79
s TotalSystem TSS 67.50
ToyotaMotor TM 112.27
TransCanada TRP 50.16
TransDigm TDG 271.08
TransUnion TRU 47.06
Travelers
TRV 123.23
-0.43
-0.22
-0.43
-0.56
0.18
-0.14
-0.35
0.02
1.32
-0.08
-0.24
0.07
0.05
-2.21
0.27
-0.08
0.25
0.41
-0.15
-0.51
-0.02
0.04
1.05
-0.93
0.04
-1.46
0.06
-0.14
-0.08
-0.16
-0.07
-0.57
-0.08
0.31
0.13
-0.31
-0.07
-0.15
-0.32
-0.23
-0.64
-0.25
0.13
-0.18
-0.03
-0.72
0.14
-0.15
-0.04
0.13
-0.13
-0.08
-0.81
-0.57
-0.17
-0.26
0.36
1.60
0.07
0.04
0.37
0.15
-0.02
...
-0.14
0.33
-0.28
-0.34
1.21
-0.39
5.12
0.33
1.35
0.28
0.10
-0.49
-0.90
-0.22
0.14
1.10
-0.57
-0.20
0.43
-0.10
-3.24
Net
Sym Close Chg
Stock
s TurkcellIletism TKC 9.54
TurquoiseHill TRQ 3.23
Twitter
TWTR 16.77
TylerTech TYL 169.04
TysonFoods TSN 62.55
UBS Group UBS 16.70
UDR
UDR 38.93
UGI
UGI 49.41
US Foods USFD 27.08
UltraparPart UGP 23.29
UnderArmour A UAA 16.93
UnderArmour C UA 15.78
s Unilever
UN 59.47
s Unilever
UL 58.12
UnionPacific UNP 104.55
UnitedContinental UAL 63.15
UnitedMicro UMC 2.47
UPS B
UPS 113.79
UnitedRentals URI 110.71
US Bancorp USB 51.96
US Steel
X
25.30
UnitedTech UTX 115.33
UnitedHealth UNH 195.09
UniversalHealthB UHS 109.07
UnumGroup UNM 48.27
VEREIT
VER 8.42
VF
VFC 63.22
Visa
V
103.78
VailResorts MTN 218.65
Vale
VALE 10.82
ValeantPharm VRX 14.23
ValeroEnergy VLO 68.42
Vantiv
VNTV 71.74
VarianMed VAR 102.89
Vectren
VVC 66.59
s Vedanta
VEDL 19.16
VeevaSystems VEEV 57.13
Ventas
VTR 67.51
Verizon
VZ 48.61
VistraEnergy VST 17.76
s VMware
VMW104.68
VornadoRealty VNO 74.45
VoyaFinancial VOYA 38.00
VulcanMaterials VMC 115.94
WABCO
WBC 138.98
WEC Energy WEC 65.38
W.P.Carey WPC 67.81
Wabtec
WAB 70.46
Wal-Mart WMT 78.03
WasteConnections WCN 64.97
s WasteMgt WM 76.26
Waters
WAT 179.94
Wayfair
W 68.56
WellCareHealth WCG 168.22
WellsFargo WFC 51.63
Welltower HCN 71.24
WestPharmSvcs WST 84.70
WestarEnergy WR 51.84
WesternGasEquity WGP 39.91
WesternGasPtrs WES 49.28
WesternUnion WU 19.04
s WestlakeChem WLK 74.84
WestpacBanking WBK 25.21
WestRock WRK 55.17
Weyerhaeuser WY 31.77
WheatonPrecMetals WPM 20.27
Whirlpool WHR 168.19
Williams
WMB 29.17
WilliamsPartners WPZ 37.89
Wipro
WIT 5.94
WooriBank WF 50.50
Workday
WDAY 103.50
Wyndham WYN 96.31
XPO Logistics XPO 58.71
XcelEnergy XEL 49.54
Xerox
XRX 32.31
s Xylem
XYL 61.16
YPF
YPF 20.69
YumBrands YUM 76.21
YumChina YUMC 35.65
ZTO Express ZTO 13.29
ZayoGroup ZAYO 34.22
ZimmerBiomet ZBH 112.89
Zoetis
ZTS 61.54
Net
Sym Close Chg
Stock
Net
Sym Close Chg
Stock
Net
Sym Close Chg
ExpressScripts ESRX 61.17 0.38 NewsCorp B NWS 13.80
0.01
NDSN 109.18
F5Networks FFIV 117.71 0.11 Nordson
0.13
Facebook
FB 167.24 0.92 NorthernTrust NTRS 88.96
0.12
AGNC Invt AGNC 21.67 0.03 Fastenal
FAST 41.58 0.12 NorwegianCruise NCLH 57.88
-1.23
Ansys
ANSS 127.64 -0.13 FifthThirdBncp FITB 26.59 -0.08 NVIDIA
NVDA 164.97
-0.70
ASML
ASML 154.12 -0.10 Fiserv
FISV 122.83 0.51 OReillyAuto ORLY 198.06
-0.11
Abiomed
ABMD 147.90 0.23 Flex
OldDomFreight
ODFL 97.22
FLEX
15.87
0.15
-0.11
ActivisionBliz ATVI 62.75 0.17 Fortinet
ON 16.14
FTNT 37.26 0.08 ON Semi
0.02
AdobeSystems ADBE 151.79 0.34 Gaming&Leisure GLPI 38.33 -0.13 OpenText OTEX 31.86
-0.32
AkamaiTech AKAM 45.14 0.16 Garmin
PTC 54.83
GRMN 52.05 -0.48 PTC
0.21
AlexionPharm ALXN 139.02 1.48 GileadSciences GILD 74.69 0.90 Paccar
PCAR 64.40
-0.25
AlignTech ALGN 175.11 2.56 Goodyear GT 30.32 0.25 PacWestBancorp PACW 45.43
-0.16
Alkermes ALKS 50.12 -0.30 Grifols
PAYX 56.49
GRFS 20.33 -0.16 Paychex
0.20
AlnylamPharm ALNY 83.20 -0.12 HD Supply HDS 31.49 -0.03 PayPal
PYPL 60.53
0.09
Alphabet A GOOGL 928.13 -2.37 Hasbro
HAS 94.63 -0.57 People'sUtdFin PBCT 16.76
-0.70
Alphabet C GOOG 913.81 -2.08 HenrySchein HSIC 169.58 -1.99 PilgrimPride PPC 28.65
-0.21
Altaba
AABA 63.53 -0.98 Hologic
PCLN 1789.91
HOLX 37.49 -0.42 Priceline
...
Amazon.com AMZN 946.02 0.76 JBHunt
QGEN 31.66
JBHT 99.12 1.46 Qiagen
0.39
Amdocs
DOX 63.73 0.27 HuntingtonBcshs HBAN 12.72 -0.04 Qorvo
QRVO 70.60
3.45
Amerco
UHAL 361.63 6.09 IAC/InterActive IAC 104.77 0.36 Qualcomm QCOM 51.81
-0.11
AmericanAirlines AAL 44.95 -0.30 IdexxLab
IDXX 150.44 -0.64 RandgoldRscs GOLD 99.99
0.36 Amgen
AMGN 171.78 2.04
0.26 AnalogDevices ADI 79.44 0.47 IHSMarkit INFO 46.62 0.10 RegenPharm REGN 479.22
IPG Photonics IPGP 169.77 2.37 RossStores ROST 59.02
0.73 Apple
AAPL 161.47 1.61
s RoyalGold RGLD 92.11
0.13 AppliedMaterials AMAT 43.63 0.32 IcahnEnterprises IEP 51.14 -0.35
RYAAY 113.49
s
ICLR 109.88 1.65 Ryanair
-0.28 ArchCapital ACGL 96.36 -1.05 Icon
ILMN 197.05 4.86 s SBA Comm SBAC152.36
-0.12 AthenaHealth ATHN 138.68 -0.87 Illumina
SEI Investments SEIC 57.20
Incyte
INCY
123.54
1.78
-0.20 Atlassian
TEAM 34.68 0.04 Intel
SINA 98.09
INTC 34.65 -0.02 Sina
0.43 Autodesk
ADSK 111.48 -3.49 InteractiveBrkrs IBKR 41.89 -0.56 SS&C Tech SSNC 38.03
-3.08 ADP
ADP 104.76 0.17 Intuit
SIVB 167.95
INTU 137.90 0.55 SVB Fin
0.14 Baidu
BIDU 219.99 -5.56
ScrippsNetworks SNI 86.01
0.09 BankofOzarks OZRK 42.39 0.19 IntuitiveSurgical ISRG 986.00 7.37
STX 31.49
IonisPharma IONS 48.93 0.94 Seagate
0.75 Biogen
BIIB 292.30 7.24
JD 40.35 -0.52 SeattleGenetics SGEN 48.76
0.52 BioMarinPharm BMRN 82.58 0.70 JD.com
Shire
SHPG 146.30
0.90 Bioverativ BIVV 56.49 0.88 JackHenry JKHY 100.48 0.40 SignatureBank SBNY 129.84
JazzPharma
JAZZ 146.09 0.09
-0.30 BrighthouseFin BHF 55.34 -0.20
SIRI 5.58
JetBlue
JBLU
19.59 -0.26 SiriusXM
0.11 Broadcom AVGO 243.25 -2.34
KLA Tencor KLAC 91.54 1.06 Skyworks SWKS 100.70
1.32 CA
CA 32.61 0.11 s KitePharma KITE 178.05 38.95 Splunk
SPLK 64.48
-0.38 s CBOE Holdings CBOE 100.15 0.38
SPLS 10.22
KraftHeinz KHC 82.14 -0.46 Staples
-0.07 CDK Global CDK 62.88 0.06
LKQ
LKQ 34.24 -0.06 Starbucks SBUX 54.40
0.01 CDW
CDW 61.37 -0.78 LamResearch LRCX 160.67 2.81 SteelDynamics STLD 34.48
1.94 CH Robinson CHRW 71.05 1.98
LamarAdvertising LAMR 66.15 0.51 Stericycle SRCL 72.10
-0.25 CME Group CME 126.93 -0.17
LibertyBroadbandA LBRDA 99.31 0.38 Symantec SYMC 29.92
... CSX
CSX 49.50 0.65 LibertyBroadbandC LBRDK 99.35 0.09 Synopsys SNPS 78.79
2.81 s CadenceDesign CDNS 37.77 0.37
LibertyGlobal A LBTYA 33.78 0.03 TD Ameritrade AMTD 42.86
-0.58 Carlyle
TSRO 125.34
CG 20.95 0.10 LibertyGlobal B LBTYB 33.85 0.45 TESARO
0.28 Celgene
CELG 131.65 1.97 LibertyGlobal C LBTYK 32.69 -0.05 T-MobileUS TMUS 63.72
0.28 Cerner
CERN 64.63 -0.62 LibertyLiLAC A LILA 25.71 -0.28 TRowePrice TROW 84.14
0.26 CharterComms CHTR 389.23 0.44 LibertyLiLAC C LILAK 25.48 -0.17 TakeTwoSoftware TTWO 95.81
-0.60 CheckPointSftw CHKP 109.03 0.32 LibertyQVC B QVCB 22.20 0.27 Tesla
TSLA 345.66
0.08 ChinaLodging HTHT106.31 -3.89 LibertyQVC A QVCA 22.15 0.29 TexasInstruments TXN 80.76
0.37 CincinnatiFin CINF 77.09 -0.37 LibertyVenturesA LVNTA 59.22 -0.18 TractorSupply TSCO 58.96
0.52 Cintas
TRMB 38.09
CTAS 133.86 0.04 LibertyFormOne A FWONA 36.62 0.21 Trimble
-0.64 CiscoSystems CSCO 31.54 0.10 LibertyFormOne C FWONK 37.83 0.17 TripAdvisor TRIP 41.98
-0.60 CitrixSystems CTXS 75.60 0.23 LibertyBraves A BATRA 23.96 0.29 21stCenturyFoxA FOXA 27.25
-0.14 Cognex
CGNX 105.47 2.71 LibertyBraves C BATRK 23.97 0.29 21stCenturyFoxB FOX 26.76
-0.68 CognizantTech CTSH 69.96 0.18 LibertySirius A LSXMA 43.34 -0.05 t UltaBeauty ULTA207.75
-0.73 Coherent
COHR 223.73 3.68 LibertySirius B LSXMB 43.23 -1.67 UltimateSoftware ULTI 196.62
0.14 Comcast A CMCSA 40.34 0.14 LibertySirius C LSXMK 43.25 -0.05 UnitedTherap UTHR 129.61
WOOF 92.67
-0.61 CommerceBcshrs CBSH 54.73 -0.30 LincolnElectric LECO 85.70 0.02 VCA
VEON 4.16
-0.96 CommScope COMM 32.90
... LogitechIntl LOGI 35.00 -0.04 VEON
VeriSign
VRSN 102.21
0.04 Copart
CPRT 31.39 -0.32 LogMeIn
LOGM 111.95 1.25
VeriskAnalytics
VRSK 79.23
1.57 CoStarGroup CSGP 281.37 -2.18 lululemon
LULU 60.13 -0.08
VertxPharm
VRTX 153.40
-0.42 Costco
COST 152.55 0.10 MarketAxess MKTX 189.92 -0.68
Viacom
A
VIA
37.90
-0.06 Ctrip.com
CTRP 52.17 -0.31 Marriott
MAR 100.71 0.05
Viacom
B
VIAB 29.43
0.07 CyrusOne CONE 62.37 -0.69 MarvellTech MRVL 17.14 0.09
Vodafone
VOD
28.71
0.70 DISH Network DISH 56.66 0.02 Mattel
MAT 16.47
...
WPPGY 92.58
-0.26 DentsplySirona XRAY 55.16 0.36 MaximIntProducts MXIM 45.14 0.10 WPP
WalgreensBoots
WBA
81.16
-0.22 DexCom
DXCM 75.45 -0.07 MelcoResorts MLCO 20.41 -0.44
WB 95.08
-0.17 DiamondbackEner FANG 88.03 -0.71 MercadoLibre MELI 242.54 -3.87 Weibo
WesternDigital
WDC
90.56
-0.02 DiscoveryComm A DISCA 22.81 0.15 MicrochipTech MCHP 83.76 1.13
-0.40 DiscoveryComm C DISCK 21.52 0.13 MicronTech MU 31.08 0.79 WillisTwrsWatson WLTW 148.00
WynnResorts
WYNN
133.90
-0.07 DollarTree DLTR 80.38 -0.01 Microsemi MSCC 49.00 0.37
XLNX 65.18
-0.68 E*TRADE
ETFC 41.03 -0.04 Microsoft MSFT 72.83 0.01 Xilinx
Yandex
YNDX 29.47
0.25 EastWestBancorp EWBC 55.18 -0.49 Middleby
MIDD 118.70 1.65
ZebraTech ZBRA 102.82
0.17 eBay
EBAY 34.81 0.13 Momo
MOMO 33.88 -1.71
Zillow
A
ZG
38.56
0.05 EchoStar
SATS 58.40 -0.51 Mondelez MDLZ 41.30 -0.18
Zillow C
Z
38.21
0.68 ElbitSystems ESLT 135.71 0.01 MonsterBeverage MNST 55.16 -0.06
ZionsBancorp ZION 44.28
-0.25 ElectronicArts EA 118.73 1.80 Mylan
MYL 30.83 0.30
s
0.38 Equinix
EQIX 462.91 -3.28 NXP Semi NXPI 112.57 0.34
-0.10 Ericsson
ERIC 5.94
... Nasdaq
NDAQ 75.63 -0.12
-0.20 ErieIndemnity A ERIE 121.72 0.80 NetApp
NTAP 38.34 -0.20 CheniereEnergy LNG 42.14
EXEL 27.32 0.16 Netease
-0.09 Exelixis
NTES 266.83 -0.52 CheniereEnerPtrs CQP 27.58
EXPE142.53 -6.73 Netflix
-0.30 Expedia
NFLX 167.12 1.17 CheniereEnHldgs CQH 25.10
0.21 ExpeditorsIntl EXPD 55.44 0.39 NewsCorp A NWSA 13.43 0.01 ImperialOil IMO 29.18
NASDAQ
0.05
0.34
-0.77
0.16
1.16
-4.22
1.80
0.11
-0.09
-0.33
0.39
-0.36
0.27
0.56
-0.10
0.25
-3.57
0.12
-0.33
0.35
2.68
1.42
-0.36
3.37
0.17
0.26
0.02
-2.59
0.17
-1.69
-0.21
0.24
1.56
1.70
-1.15
...
-1.28
-0.91
...
0.04
-0.17
0.38
0.45
0.30
-0.29
-1.03
-0.02
0.24
1.17
-2.39
-0.22
-0.62
-0.04
0.26
...
0.04
-4.61
2.05
1.16
0.17
0.05
0.77
-0.44
0.13
0.30
0.24
...
0.40
0.03
-0.91
0.31
-0.88
-0.75
0.43
-0.28
0.05
0.26
0.29
-0.42
NYSE AMER
Largest 100 exchange-traded funds, latest session
0.89
-0.18
-0.28
-0.08
ETF
Monday, August 28, 2017
Closing Chg YTD
Symbol Price (%) (%)
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
DBGoldDoubleLgETN
DBGoldDoubleShrt
DeutscheXMSCIEAFE
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
AMLP
XLY
XLP
DGP
DZZ
DBEF
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
10.86
88.68
54.51
25.48
5.29
29.98
62.72
24.65
92.35
79.37
67.46
110.43
105.47
124.46
62.52
53.89
59.71
246.23
170.51
68.04
55.82
110.16
92.06
70.80
49.94
12.60
121.21
88.23
116.20
107.48
66.99
–0.46 –13.8
8.9
0.06
5.4
–0.29
2.95 26.6
–3.47 –22.8
6.8
–0.20
–0.44 –16.7
6.0
–0.64
6.6
–0.12
0.53 15.1
8.4
–0.06
2.1
0.03
0.5
0.01
1.6
0.06
0.02 16.6
–0.26 26.9
0.03 18.3
9.4
0.02
3.1
–0.08
0.10 –1.0
8.8
–0.02
1.9
0.04
3.9
0.16
0.21 15.6
... 10.4
1.45 13.7
3.4
...
1.9
0.01
5.4
–0.15
1.1
0.07
–0.09 13.2
Closing Chg YTD
Symbol Price (%) (%)
ETF
iShMSCI EAFE
iShMSCIEAFESC
iShMSCIEmgMarkets
iShMSCIEurozoneETF
iShMSCIJapanETF
iShNasdaqBiotech
iShNatlMuniBdETF
iShRussell1000Gwth
iShRussell1000ETF
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000ETF
iShRussell2000Val
iShRussell3000ETF
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500ValueETF
iShUSPfdStk
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDRBloomBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
EFA
SCZ
EEM
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
TIP
SHY
IEF
TLT
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
66.75
59.98
44.77
41.99
54.42
316.89
111.33
121.73
135.97
115.09
166.26
137.46
114.91
144.54
190.47
82.59
193.04
140.13
104.59
38.89
114.18
84.62
107.91
127.24
108.34
101.81
142.41
45.29
23.14
37.13
124.69
32.56
58.98
...
0.02
–0.36
...
0.11
1.88
0.02
0.25
0.01
–0.12
0.82
0.42
0.05
0.04
–0.12
–0.27
0.01
0.19
–0.15
0.12
0.08
–0.04
0.09
–0.06
0.01
0.02
0.31
–0.13
...
...
1.59
–0.06
0.03
Mutual Funds | WSJ.com/fundresearch
A
E
F
H
IncoA p
N PerA p
NEcoA p
NwWrldA
SmCpA p
TxExA p
WshA p
10.42 +0.01
38.94 +0.03
22.79 +0.01
42.58 +0.03
43.62 +0.40
63.15 +0.02
53.31 +0.28
13.04
...
43.13
...
5.2
8.3
6.7
20.5
21.3
22.7
15.9
4.4
8.9
B
Baird Funds
AggBdInst
CorBdInst
10.95 +0.01
11.30 +0.01
BlackRock Funds A
GlblAlloc p 19.94 +0.03
BlackRock Funds Inst
EqtyDivd
21.91 -0.02
20.06 +0.04
GlblAlloc
HiYldBd
7.79
...
...
StratIncOpptyIns 9.93
Bridge Builder Trust
CoreBond
NA
...
4.0
4.3
9.7
6.8
9.9
5.9
3.3
NA
D
Del Invest Instl
Value
20.09
...
Dimensional Fds
5GlbFxdInc 11.05 +0.01
EmgMktVa 30.18 +0.11
EmMktCorEq 21.94 +0.05
IntlCoreEq 13.65 +0.02
18.99 +0.01
IntlVal
IntSmCo
20.68 +0.04
22.58 +0.02
IntSmVa
US CoreEq1 20.69 +0.02
US CoreEq2 19.59
...
33.34 +0.04
US Small
US SmCpVal 35.42 -0.01
US TgdVal 23.01 -0.02
36.80 -0.02
USLgVa
Dodge & Cox
Balanced 106.19 -0.14
13.47 -0.04
GblStock
Income
13.88
...
45.15 -0.17
Intl Stk
3.0
2.5
26.3
27.1
18.6
15.4
20.5
19.0
8.2
6.0
-1.0
-5.0
-3.7
5.8
5.4
13.1
3.7
18.5
85.73 +0.04
85.73 +0.04
85.73 +0.05
58.31 +0.05
41.54 +0.03
70.57 +0.04
70.56 +0.04
11.69
...
Fidelity Advisor I
NwInsghtI 31.16 +0.03
Fidelity Freedom
16.22
...
FF2020
14.00
...
FF2025
17.42
...
FF2030
FreedomK2020 15.09
...
...
FreedomK2025 15.91
...
FreedomK2030 16.41
...
FreedomK2035 17.21
FreedomK2040 17.24
...
Fidelity Invest
24.01 -0.01
Balanc
83.09 +0.15
BluCh
118.03 +0.12
Contra
118.01 +0.12
ContraK
10.11
...
CpInc r
39.89 +0.03
DivIntl
GroCo
168.68 +0.47
GrowCoK 168.61 +0.47
7.96
...
InvGB
11.35 +0.01
InvGrBd
54.39 +0.02
LowP r
LowPriStkK r 54.37 +0.02
98.16 +0.01
MagIn
105.89 +0.06
OTC
22.65 +0.02
Puritn
SrsEmrgMktF NA
...
NA
...
SrsInvGrdF
...
TotalBond 10.74
Fidelity Selects
Biotech r 218.37 +4.20
First Eagle Funds
58.56 +0.11
GlbA
FPA Funds
FPACres
33.86 -0.03
FrankTemp/Frank Adv
...
IncomeAdv 2.32
FrankTemp/Franklin A
10.6
10.6
10.6
6.3
17.7
9.8
9.8
3.4
16.7
9.9
10.6
12.2
10.0
10.7
12.3
13.3
13.4
9.9
23.4
20.7
20.7
7.9
19.8
23.3
23.4
3.6
4.0
9.9
10.0
13.8
27.1
10.9
NA
NA
3.8
25.5
7.9
5.0
4.9
15.6
20.3
27.9
21.4
11.4
19.4
2.9
16.0
9.2
2.7
8.0
1.9
–3.4
8.7
6.5
2.7
5.9
15.1
3.2
4.5
0.9
0.2
2.9
6.8
11.2
0.5
20.2
8.9
–0.9
1.9
13.8
17.6
8.9
Fund
Explanatory Notes
500IdxInst
500IdxInstPrem
500IdxPrem
ExtMktIdxPrem r
IntlIdxPrem r
TMktIdxF r
TMktIdxPrem
USBdIdxInstPrem
Harbor Funds
CapApInst
IntlInst r
70.04 +0.05 23.6
68.31 -0.09 16.9
Harding Loevner
NA
... NA
IntlEq
I
Invesco Funds A
10.90 -0.01 4.0
EqIncA
J
John Hancock Class 1
LSBalncd
15.51 +0.01
LSGwth
16.43
...
John Hancock Instl
DispValMCI 22.54 -0.07
JPMorgan Funds
MdCpVal L 38.33 -0.14
JPMorgan I Class
11.73 +0.01
CoreBond
JPMorgan R Class
11.74
...
CoreBond
9.5
11.8
5.0
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
Oakmark
OakmrkInt
79.12 -0.12
27.65
...
Old Westbury Fds
14.33 -0.02
LrgCpStr
Oppenheimer Y
40.65 -0.03
DevMktY
41.35 +0.02
IntGrowY
P
Parnassus Fds
41.84 +0.09
ParnEqFd
PIMCO Fds Instl
NA
...
AllAsset
TotRt
10.35
...
PIMCO Funds A
NA
...
IncomeFd
PIMCO Funds D
NA
...
IncomeFd
PIMCO Funds Instl
NA
...
IncomeFd
PIMCO Funds P
NA
...
IncomeP
Price Funds
BlChip
90.02 +0.06
NA
...
CapApp
NA
...
EqInc
65.84 +0.03
EqIndex
Growth
65.86 +0.11
71.40 +0.82
HelSci
36.53 +0.05
InstlCapG
NA
...
IntlStk
NA
...
IntlValEq
MCapGro
86.85 +0.02
MCapVal
29.87
...
51.52 +0.11
N Horiz
NA
...
N Inc
NA
...
OverS SF r
R2020
NA
...
NA
...
R2025
NA
...
R2030
NA
...
R2035
R2040
NA
...
Value
36.70 -0.03
Principal Investors
DivIntlInst 13.33 -0.01
Prudential Cl Z & I
TRBdZ
14.59 +0.01
S
Schwab Funds
5.3 S&P Sel
38.07 +0.02
3.8
T
3.8
L
V
O
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
Net YTD
NAV Chg %Ret Fund
TIAA/CREF Funds
18.22 +0.01
EqIdxInst
IntlEqIdxInst 19.50 +0.02
Tweedy Browne Fds
Lazard Instl
27.66 -0.05
EmgMktEq 19.26 +0.02 21.3 GblValue
Loomis Sayles Fds
14.25 -0.04 6.9
LSBondI
Lord Abbett A
VANGUARD ADMIRAL
ShtDurIncmA p 4.29
... 2.0 500Adml 226.39 +0.12
Lord Abbett F
33.06 +0.02
BalAdml
... 2.3 CAITAdml
ShtDurIncm 4.29
11.88
...
CapOpAdml r143.17 +0.33
36.60 +0.07
EMAdmr
Metropolitan West
...
EqIncAdml 72.51
10.73
... 3.1 ExtndAdml 76.82 +0.06
TotRetBd
TotRetBdI 10.73 +0.01 3.3 GNMAAdml 10.56
...
TRBdPlan 10.10 +0.01 3.4
GrwthAdml 66.62 +0.14
MFS Funds Class I
38.98 -0.04 8.4 HlthCareAdml r 87.42 +0.45
ValueI
...
HYCorAdml r 5.95
MFS Funds Instl
25.94 +0.02
IntlEq
24.45
... 20.7 InfProAd
IntlGrAdml 89.38 -0.13
Mutual Series
32.22 -0.07 5.4 ITBondAdml 11.54 +0.01
GlbDiscA
...
32.87 -0.07 5.6 ITIGradeAdml 9.87
GlbDiscz
...
LTGradeAdml 10.61
MidCpAdml 176.68 -0.17
MuHYAdml
11.40
...
Oakmark Funds Invest
32.26 -0.04 6.0 MuIntAdml 14.27 +0.01
EqtyInc r
...
MuLTAdml 11.70
M
Closing Chg YTD
Symbol Price (%) (%)
ETF
11.91 14.1
7.20 1.4
Data provided by
25.23 0.1
Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of
15.90 1.0
at least $500 million each. NAV is net asset value. Percentage performance figures
46.50 ...
are total returns, assuming reinvestment of all distributions and after subtracting
85.23 0.2
annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees.
46.03 -0.2
10.29 ...
NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date
64.41 1.4
return. 3-YR%RET is trailing three-year return annualized.
37.50 18.7
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e
179.69 28.0
and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply,
32.30 0.1
12b-1.
r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r
37.11 8.0
apply.
v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not
11.04 1.8
available due to incomplete price, performance or cost data. NE-Not released by Lipper;
13.75 149.1
data
under
review. NN-Fund not tracked. NS-Fund didn’t exist at start of period.
29.90 7.7
12.70 13.9
46.80 -2.3
Monday, August 28, 2017
46.45 3.6
Net YTD
Net YTD
Net YTD
115.92 1.0 Fund
NAV Chg %Ret Fund
NAV Chg %Ret Fund
NAV Chg %Ret
9.25 3.4
7.52
... 5.6
Stock
192.14 -0.39 6.5 CA TF A p
21.10 2.4
DoubleLine Funds
Fed TF A p 12.07
... 3.4
15.90 1.0
American Century Inv
2.34
... 4.8
10.79 +0.01 3.8 IncomeA p
TotRetBdI
29.20 0.2
42.00 +0.15 20.4 TotRetBdN 10.78
Ultra
... 3.6 RisDv A p 56.37 -0.06 7.7
54.28 ...
American Funds Cl A
FrankTemp/Franklin C
30.00 0.8
29.45 -0.01 9.7
AmcpA p
... 4.8
Income C t 2.37
92.13 3.8
AMutlA p 39.42 +0.02 8.1 Edgewood Growth Instituti
FrankTemp/Temp A
153.80 0.2
26.60 +0.02 8.4 EdgewoodGrInst 28.16 +0.13 26.8 GlBond A p 12.02 -0.07 2.0
BalA p
8.65 3.4
13.01
... 3.5
BondA p
Growth A p 26.08 +0.05 10.7
20.28 1.8
FrankTemp/Temp Adv
CapIBA p
62.08 +0.05 9.5
22.57 0.8
GlBondAdv p 11.97 -0.07 2.1
CapWGrA 49.92 +0.06 15.2 Federated Instl
27.95 0.6
54.40 +0.03 23.1
EupacA p
StraValDivIS 6.33
... 9.5
32.98 2.8 FdInvA p
59.87 -0.03 11.8 Fidelity
12.30 5.4 GwthA p
47.98 +0.05 14.1
7.23 -2.8
10.61 -5.4
0.78 4.6
1.19 -6.3
10.00 0.2
5.40 -1.0
2.75 -5.1
101.70 0.5
0.51 -2.6
3.83 -7.7
8.70 -0.1
12.05 -6.5
2.39 -9.8
19.60 -1.2
6.30 -3.2
3.66 -0.8
0.02 38.2
0.71 -21.8
3.60 -1.4
10.05 -5.4
28.27 1.7
35.30 -0.8
29.70 -0.5
21.90 -9.7
6.94 -2.1
1.51 -3.2
5.70 -2.6
17.46 -1.5
12.84 2.7
2.20 -3.0
1.25 -8.4
3.90 -0.2
3.08 -5.0
2.00 ...
8.53 -1.7
0.74 -15.5
12.52 -3.2
2.99 -2.0
18.56 -9.2
18.36 -11.6
3.12 -3.8
207.00 -2.2
0.05 -75.8
3.47 -5.6
Stock
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Nasdaq lows - 44 HIICAATrAp p
ASV
ASV
Aceto
ACET
Aemetis
AMTX
AptevoTherap APVO
AscentCapital A ASCMA
AspenGroup
ASPU
BravoBrioRestr BBRG
BuffWildWngs BWLD
BurconNutraScience BUR
CTI Ind
CTIB
CapitalaFinance CPTA
CarrizoOil
CRZO
CarverBancorp CARV
Chuy's
CHUY
Conifer
CNFR
ConsumerPtfo CPSS
CytoriTherapWt CYTXW
DianaContainer DCIX
Digirad
DRAD
EnergyXXIGulfCoast EXXI
GuarantyBcshrs GNTY
Hawkins
HWKN
HuronConsulting HURN
InglesMarkets IMKTA
KEYW
KEYW
Koss
KOSS
LiquiditySvcs LQDT
NatlGeneral
NGHC
NatlSecurity
NSEC
Precipio
PRPO
QuestResource QRHC
RealNetworks RNWK
SonicFoundry SOFO
SunesisPharm SNSS
SurgeryPartners SGRY
TOP Ships
TOPS
TarenaIntl
TEDU
Tecogen
TGEN
TravelCtrsNt29 TANNL
TravelCtrsNt30 TANNZ
TravelCenters TA
UltaBeauty
ULTA
Uni-Pixel
UNXL
YogaWorks
YOGA
Net
Sym Close Chg
58.41
217.94
311.46
244.57
88.58
57.81
55.24
24.26
148.13
120.84
92.04
42.40
44.19
56.63
51.90
129.44
147.39
78.72
85.41
88.35
112.32
142.73
102.89
83.18
224.68
80.12
80.29
133.59
82.37
54.83
53.85
125.41
69.04
96.99
61.50
51.40
0.02
–0.05
–0.05
0.00
–0.32
0.19
0.18
3.63
0.26
...
–0.01
...
–0.02
–0.05
–0.06
0.20
0.72
–0.08
0.16
0.07
0.01
–0.06
–0.14
–0.76
0.04
0.04
0.10
0.11
0.05
0.05
–0.06
0.04
–0.01
–0.17
–0.58
0.04
9.7
10.3
3.2
9.4
3.5
19.5
13.7
16.0
21.9
–0.1
8.1
16.0
23.5
18.1
17.5
16.1
16.3
3.9
2.8
3.1
9.7
8.4
5.9
0.8
9.4
0.8
1.2
3.6
2.0
1.0
17.4
8.7
13.2
4.3
7.1
3.8
Net YTD
NAV Chg %Ret
9.2 MuLtdAdml 11.03
...
21.8 MuShtAdml 15.83
...
PrmcpAdml r124.39 +0.17
11.7 REITAdml r 117.85 -0.88
SmCapAdml 63.99 +0.05
27.2 STBondAdml 10.50 +0.01
19.2 STIGradeAdml 10.72 +0.01
...
TotBdAdml 10.84
TotIntBdIdxAdm 21.89 +0.01
TotIntlAdmIdx r 28.93 +0.03
7.1 TotStAdml 61.03 +0.03
13.62 +0.01
TxMIn r
37.84 -0.05
NA ValAdml
65.47 -0.03
WdsrllAdml
5.1
WellsIAdml 64.26 +0.02
...
NA WelltnAdml 71.26
WndsrAdml 74.20 -0.05
NA VANGUARD FDS
25.39 +0.01
DivdGro
NA HlthCare r 207.24 +1.08
INSTTRF2020 21.89 +0.02
NA INSTTRF2025 22.05 +0.02
INSTTRF2030 22.15 +0.02
24.0 INSTTRF2035 22.25 +0.02
NA INSTTRF2040 22.34 +0.01
NA INSTTRF2045 22.44 +0.02
37.49 +0.01
10.5 IntlVal
23.7 LifeGro
31.79 +0.02
20.9 LifeMod
26.11 +0.03
24.9 PrmcpCor
24.86 +0.01
NA SelValu r
30.97 +0.01
NA STAR
26.12 +0.01
15.2 STIGrade
10.72 +0.01
2.8 TgtRe2015 15.57 +0.02
19.0 TgtRe2020 30.71 +0.03
NA TgtRe2025 17.92 +0.01
NA TgtRe2030 32.25 +0.03
NA TgtRe2035 19.73 +0.01
NA TgtRe2040 33.85 +0.03
NA TgtRe2045 21.22 +0.01
NA TgtRe2050 34.14 +0.03
NA TgtRetInc
13.42 +0.02
9.1 TotIntBdIxInv 10.95 +0.01
26.52
...
WellsI
21.2 Welltn
41.26
...
36.89 -0.02
WndsrII
5.6 VANGUARD INDEX FDS
226.35 +0.11
500
ExtndIstPl 189.59 +0.16
SmValAdml 51.89 -0.02
10.81 +0.01
10.6 TotBd2
17.30 +0.02
TotIntl
61.00 +0.03
TotSt
VANGUARD INSTL FDS
33.07 +0.02
9.8 BalInst
17.8 DevMktsIndInst 13.64 +0.01
DevMktsInxInst 21.32 +0.02
10.5 ExtndInst
76.82 +0.06
GrwthInst 66.63 +0.15
10.57 +0.01
InPrSeIn
223.40 +0.12
InstIdx
10.6 InstPlus
223.42 +0.12
7.3
InstTStPlus 54.78 +0.03
4.8
15.2 MidCpInst 39.03 -0.04
23.9 MidCpIstPl 192.49 -0.19
7.5 SmCapInst 63.99 +0.05
6.2 STIGradeInst 10.72 +0.01
10.84
...
1.9 TotBdInst
16.9 TotBdInst2 10.81 +0.01
15.3 TotBdInstPl 10.84
...
5.7 TotIntBdIdxInst 32.84
...
2.0 TotIntlInstIdx r115.70 +0.12
32.7 TotItlInstPlId r115.72 +0.12
4.4
61.04 +0.03
TotStInst
4.3
37.84 -0.05
ValueInst
8.3
9.2
6.1
4.6 Western Asset
NA
...
5.2 CorePlusBdI
2.8
1.4
14.3
2.5
4.1
1.7
2.3
3.4
1.6
19.1
9.8
17.8
5.7
6.1
5.6
7.0
8.1
10.0
15.3
8.7
9.6
10.5
11.3
12.0
12.4
18.1
11.2
9.2
12.1
7.6
11.1
2.2
7.3
8.7
9.6
10.4
11.2
12.0
12.3
12.3
5.6
1.6
5.6
7.0
6.0
10.5
6.3
0.6
3.5
19.1
9.7
7.3
17.9
17.9
6.3
16.9
2.1
10.6
10.6
9.8
9.2
9.2
4.1
2.3
3.4
3.5
3.4
1.6
19.1
19.1
9.8
5.7
W
NA
B10 | Tuesday, August 29, 2017
THE WALL STREET JOURNAL.
BANKING & FINANCE
Auto-Lending Products Under Scrutiny
BY EMILY GLAZER
AND ANNAMARIA ANDRIOTIS
views will lead to any action.
Wells Fargo previously had
disclosed that during an internal review it discovered issues
relating to the administration
of GAP products, particularly
customer refunds.
The regulatory reviews are
happening as many lenders
themselves check up on their
internal controls around the
GAP products and related refunds.
Capital One Financial
Corp., Santander Consumer
USA Holdings Inc., and U.S.
Bancorp are among banks that
are reviewing their GAP product-refund policies given the
situation at Wells Fargo, according to people familiar with
the matter. While reviews occur on a continuing basis, the
banks are taking a closer look
Regulators are reviewing
some auto-lending procedures,
including those related to borrower refunds, at several
banks and other financing
businesses in the wake of
problems at Wells Fargo &
Co., according to people familiar with the matter.
The Consumer Financial
Protection Bureau and the Office of the Comptroller of the
Currency are examining guaranteed-asset-protection products and the refund processes
associated with them at these
firms, the people said.
The CFPB is focusing on the
refunding process, these people added. It isn’t clear
whether the regulatory re-
at procedures meant to ensure
borrowers who are entitled to
refunds receive them, the people said.
GM Financial, Nissan Motor
Acceptance Corp., Infiniti Financial Services and Ford Motor Credit Co. are among captive-finance
companies
checking their internal controls and refunding processes
as well, people familiar with
the firms said. It isn’t clear
whether the firms will make
changes or what those will be.
GAP coverage is typically
sold to consumers through car
dealerships. The products offer
consumers additional protection beyond standard auto-insurance policies and are often
financed as part of the customer’s loan.
For instance, if a customer
has an accident and the vehicle
is totaled, GAP waivers could
help pay off the loan balance
that isn’t covered by the customer’s primary insurance.
Laws in nine states require
Many lenders
themselves are
checking up on their
internal controls.
that customers receive refunds
for unused coverage periods,
and the holder of the contract—the lender—often ensures this is done properly.
Some lenders use a thirdparty provider to oversee the
refunding process. Some of
those providers, including
World Omni Financial Corp.,
have received questions from
lenders following news of
Wells Fargo’s problems, people
familiar with the matter said.
Kenneth Rojc, a lawyer at
Chicago-based Nisen & Elliott
LLC who manages the law
firm’s
automotive-finance
group, said some of his clients
are examining whether they
have the right procedures in
place to implement GAP refunds. That could include how
the process works, who provides the refund and whether
that firm is doing so in a
timely manner, he added. “Every single one of our auto-finance managers here are saying ‘What are we doing? Is this
something we should be con-
Fitch Downgrades Qatar’s Debt by a Notch
BY NICOLAS PARASIE
Anwar Gargash, the U.A.E.’s minister of state for foreign affairs, says Qatar’s policies amount to ‘crisis management of burning bridges.’
bridges,” the U.A.E.’s minister
of state for foreign affairs, Anwar Gargash, said following
that move. “The wisdom we
wished for is completely absent.”
Fitch and the other ratings
firms Moody’s Investors Service and Standard & Poor’s
worry that the conflict will
pressure Doha’s finances.
Lower credit ratings could
push up Qatar’s borrowing
costs.
Monday’s downgrade underlines the mounting costs
for Qatar since the diplomatic
crisis erupted in June, when
the Saudi-led bloc severed diplomatic ties and closed all air,
land and sea borders shared
with Qatar. A flurry of diplomatic efforts has failed to
break the impasse between the
countries, all of which are U.S.
allies in the region.
S&P said Sunday that the
boycott will slow down Qatar’s
economy, keeping its AA-minus rating and negative outlook on the country’s longterm
prospects
despite
removing Qatar from negative
CreditWatch. Moody’s last
month lowered its Qatar rating outlook to negative.
Until now, Qatar has weathered the initial impact of the
blockade by tapping its vast
reserves, accumulated in large
part due to the export of natural gas. Doha also sought to
establish new sea and air
routes through Iran and countries including Oman.
But there are signs of the
toll it has taken on Qatar’s
economy. Food prices have
risen, and domestic banks
have been hit by two successive months of deposit outflows. Fitch said it expects
those outflows to continue but
at a slower pace.
For this year, Fitch predicts
Qatar’s gross domestic product will expand at 2% and at
1.3% in 2018 and 2019, compared with 2.2% in 2016. Tourism and transport are likely to
be the worst-hit sectors, it
said, estimating Qatar’s national airline has lost 10% of
its passengers since June.
BY SUMMER SAID
AND BENOIT FAUCON
Saudi Arabia and Russia are
pushing to extend a deal to
limit crude-oil output for an
additional three months, which
would leave the agreement between OPEC and non-OPEC
producers in place through the
end of June, people familiar
with the matter said.
Saudi Arabia’s energy minister, Khalid al-Falih, discussed
the proposal with his Russian
counterpart, Alexander Novak, in July at a meeting in St.
Petersburg about compliance
with the production cap, according to two of the people
familiar with the matter.
The two ministers, who are
the most powerful figures
among the producing countries participating in the cut,
have been lobbying for support from other countries
since the St. Petersburg meet-
ing, the people said.
Neither minister responded
to a request for comment.
The Organization of the Petroleum Exporting Countries
joined forces with 11 non-OPEC
nations late last year to reach
a production deal aimed at
ending a global glut that has
weighed on oil prices and
shaken the economies of countries dependent on crude.
So far, the pact has failed to
lift oil prices to levels desired
by OPEC, in part because
American shale producers
ramped up output. The deal
also has been undermined by
relatively low compliance by
some producers.
An OPEC official confirmed
that a three-month extension
was discussed at the St. Petersburg meeting and is being
considered by OPEC leaders.
OPEC and other major oilproducing nations agreed to
withhold about 1.8 million bar-
Dividend Changes
Company
Dividend announcements from August 28.
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Increased
BancFirst
Harris Corp
Northrim Bancorp
Pacific Coast Oil Trust
Saratoga Investment
BANF
HRS
NRIM
ROYT
SAR
1.7 .21 /.19
1.9 .57 /.53
3.0 .22 /.21
7.7 .0093 /.00266
9.0 .48 /.47
Q
Q
Q
M
Q
Oct13 /Sep29
Sep22 /Sep08
Sep15 /Sep07
Sep15 /Sep05
Sep26 /Sep15
M
M
M
Q
M
M
M
M
Q
Q
Q
M
M
M
M
Sep15 /Sep08
Sep15 /Sep08
Sep15 /Sep08
Sep22 /Sep15
Aug31 /Aug30
Oct24 /Oct17
Nov22 /Nov15
Dec15 /Dec08
Sep22 /Sep15
Sep22 /Sep15
Sep22 /Sep15
Oct24 /Oct17
Nov22 /Nov15
Dec15 /Dec08
Oct24 /Oct17
Funds and investment companies
Alliance CA Municipal
AllianceBernstein Glbl
AllianceBrnstn NtlMun
Bancroft Fund
CWA Income ETF
Gabelli Dividend & Incm
Gabelli Dividend & Incm
Gabelli Dividend & Incm
Gabelli Equity Trust
Gabelli Glbl Multimedia
Gabelli Hlthcr & Well
Gabelli Util Inco Tr
Gabelli Util Inco Tr
Gabelli Util Inco Tr
Gabelli Utility Tr
AKP
AWF
AFB
BCV
CWAI
GDV
GDV
GDV
GAB
GGT
GRX
GLU
GLU
GLU
GUT
4.1
6.5
4.4
4.6
2.7
6.2
6.2
6.2
9.7
9.6
5.1
5.9
5.9
5.9
8.5
.04724
.0699
.05205
.25
.05671
.11
.11
.11
.15
.22
.13
.10
.10
.10
.05
ANDREY RUDAKOV/BLOOMBERG NEWS
Saudi Arabia, Russia Press for Oil-Cut Extension
Company
Securities
Linked
To Wanda
Take a Hit
BY SHEN HONG
DOMINIC DUDLEY/PACIFIC PRESS/ZUMA PRESS
DUBAI—Confidence in Qatar’s creditworthiness took another hit, as Fitch Ratings
downgraded the country’s
debt, citing concerns that the
economic blockade imposed by
Arab neighbors was unlikely to
be lifted soon.
The move on Monday was
the latest sign of worry from
credit-rating firms that a diplomatic dispute between Doha
and a Saudi Arabia-led bloc of
countries has taken a toll on
Qatar’s economy and that the
situation could continue to deteriorate.
Fitch lowered the energyrich Persian Gulf nation’s longterm issuer rating by one
notch, to AA-minus from AA,
noting that the negotiating
positions between Qatar and
its adversaries “remain far
apart” as international efforts
to resolve the diplomatic
standoff make little progress.
Saudi Arabia, the United
Arab Emirates, Bahrain and
Egypt accuse Qatar of promoting extremist groups and meddling in their domestic affairs,
charges Doha denies. Qatar’s
adversaries also issued a list
of 13 demands, including shutting down news broadcaster Al
Jazeera and curbing ties with
Tehran.
Doha has refused to agree
to the demands. Last week,
tensions rose further when
Qatar restored full diplomatic
relations with Iran. Majority
Shiite Muslim Iran is Sunni
Saudi Arabia’s main rival for
power in the Middle East.
Qatar’s policy amounts to
“crisis management of burning
cerned about?’ ” Mr. Rojc said.
Auto lenders have reason to
be cautious. After Wells Fargo
cited the problems in a recent
quarterly securities filing, The
Wall Street Journal and others
reported the Federal Reserve
Bank of San Francisco made an
inquiry about control breakdowns related to GAP refunds.
The OCC is also probing Wells
Fargo’s practices.
Wells
Fargo
spokeswoman Catherine Pulley said
at the time: “During an internal review, we discovered issues related to a lack of oversight and controls surrounding
the administration of guaranteed asset protection…products.” Ms. Pulley added the
bank is working to make the
customer refund process “more
consistent for customers.”
Workers at an oil derrick in Russia. The output deal has failed to lift crude prices to desired levels.
rels a day, or about 2% of
global daily output. On Monday, oil for October delivery
dropped 2.7%, to $46.57 a barrel, on the New York Mercan-
Symbol
Gabelli Utility Tr
Gabelli Utility Tr
GabelliConvInc
GAMCO Nat Rsc Gold & Incm
GAMCO Nat Rsc Gold & Incm
GAMCO Nat Rsc Gold & Incm
GAMCOGlblGoldNatRscs&Inc
GAMCOGlblGoldNatRscs&Inc
GAMCOGlblGoldNatRscs&Inc
GDL Fund
Templeton Dragon
Templeton Dragon
YieldShares Hi Incm
GUT
GUT
GCV
GNT
GNT
GNT
GGN
GGN
GGN
GDL
TDF
TDF
YYY
Amount
Yld % New/Old Frq
8.5
8.5
8.8
8.5
8.5
8.5
10.7
10.7
10.7
6.3
3.1
3.1
8.0
M
.05
M
.05
Q
.12
M
.05
M
.05
M
.05
M
.05
M
.05
M
.05
Q
.16
1.366
.3445 SA
M
.13
Payable /
Record
Nov22 /Nov15
Dec15 /Dec08
Sep22 /Sep15
Oct24 /Oct17
Nov22 /Nov15
Dec15 /Dec08
Oct24 /Oct17
Nov22 /Nov15
Dec15 /Dec08
Sep22 /Sep15
Sep25 /Sep11
Sep25 /Sep11
Aug31 /Aug30
Stocks
Synlogic
1:7
SYBX
/Aug28
Foreign
CNOOC ADR
RenaissanceRe Hldgs 6.08%
RenaissanceRe Pfd. E
Smith & Nephew ADR
Sociedad Quimica ADR
CEO
RNRpC
RNRpE
SNN
SQM
4.2
5.9
5.2
1.4
1.6
2.55666
.38
.33594
.246
.38432
SA
Q
Q
SA
SA
Oct19 /Sep07
Sep01 /Aug31
Sep01 /Aug31
Nov01 /Oct06
Sep25 /Sep08
Special
MSB Financial
MSBF
.425
Sep20 /Sep07
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
tile Exchange as Tropical
Storm Harvey knocked out refining operations along the
Texas coast, which is expected
to reduce refining capacity and
hit U.S. crude demand. Brent
crude, the global benchmark,
fell 1%, to $51.89.
The original output deal
was renewed at the end of
May and is in place through
the end of March.
Efforts to extend the deal
now are aimed at ensuring
that there isn’t another precipitous price drop.
“There are concerns that if
OPEC and non-OPEC producers
exit the market in March, traders will react quite negatively
to it and behave as if the market is in a free fall,” one senior
Saudi oil official said. “This
also ensures that producers
won’t pump full tilt and push
prices down.”
Venezuelan Oil Minister Eulogio del Pino is scheduled to
visit Russia and Saudi Arabia
ahead of a planned Sept. 22
meeting in Vienna to discuss
compliance and a possible extension of the deal, according
to the official.
The proposal to extend the
deal also was discussed with
other Persian Gulf producers
that are part of OPEC, according to that official and another
person familiar with the matter.
Messrs. Falih and Novak
previously had said they would
“do whatever it takes” to reduce the inventory overhang,
using a phrase coined by European Central Bank President
Mario Draghi five years ago in
his successful bid to defend
the euro.
“Mr. Falih in particular remains very committed to this
promise and for now he thinks
what it takes now is more
commitment from the producers and an extension to the
deal,” said a senior oil official
from one of the non-OPEC producers participating in the
deal.
SHANGHAI—Hong Konglisted shares and bonds of Chinese billionaire Wang Jianlin’s
Dalian Wanda Group Co.
plunged for the second time in
two months, following what
the company called rumors
about its leader being barred
from leaving the country.
Shares of Wanda Hotel Development Co., the Chinese
real-estate and entertainment
company’s hotel and commercial-property arm, fell as much
as 11% on Monday before closing down 8.1% at 1.59 Hong
Kong dollars (20 U.S. cents)
after Wanda Group issued a
statement denying that an
overseas travel ban on Mr.
Wang was in place.
The company was responding to reports on Chinese social media that Mr. Wang was
detained by police at Tianjin’s
airport on Aug. 25 and barred
from taking a private jet to the
U.K. The reports said Mr.
Wang was released but was
told not to leave China.
“Some people with malicious intent have been spreading vicious rumors about
Chairman Wang Jianlin,”
Wanda Group said Monday.
“These rumors are out of thin
air, and we hope that people
don’t believe in them and
don’t circulate them either.”
Rumors on
social media
say Wang
Jianlin was
told by
authorities not
to leave China.
Wanda said it reported the
rumor’s distribution to police
and other authorities and was
prepared to take legal action
to protect itself.
A U.S.-dollar-denominated
bond that matures in 2024 issued by Wanda Properties International Co. also fell as
much as 2.7% early Monday; it
was down about 1.7% by midafternoon.
Monday’s stock selloff was
the second to hit Wanda since
late June, when Beijing
launched a probe into overseas investments and financing by Wanda Group and other
companies, including Anbang
Insurance Group Co., HNA
Group Co. and Fosun International Ltd.
The Chinese government has
been trying to get a grip on
high corporate debt and stem
an outflow of capital. One of
the deals called into question
was Wanda’s $3.5 billion acquisition of Hollywood production
company Legendary Entertainment in 2016.
The Wall Street Journal reported last month that China
President Xi Jinping approved
measures barring state-owned
banks from making new loans
to Wanda to help fuel its foreign expansion. Trading in
shares of Wanda Film Holding Co., which is listed on the
mainland, has been suspended
since July 4 after the company
said it had major acquisitions
to disclose. Prices of Wanda
Group’s various domestically
traded bonds are steady and
appear little affected by the
losses in the Hong Kong market.
Tuesday, August 29, 2017 | B11
THE WALL STREET JOURNAL.
MARKETS
Treasurys
Get Lift
From Note
Auction
Floor Traders Make a Last Stand
BY SAM GOLDFARB
BY STEVEN RUSSOLILLO
U.S. government bonds extended recent gains, as strong
demand for new five-year
notes carried over into the
broader market.
In a fairly unCREDIT
usual developMARKETS ment, auctions
of
two-year
Treasury notes
and five-year Treasury notes
were both held Monday.
Though investor appetite was
muted for the two-year notes,
it picked up for the five-year
notes, with bids totaling more
than 2.5 times the $34 billion
being auctioned.
Subsequent demand for
Treasurys caused the yield on
the 10-year note to settle at
2.159%, down from 2.173% just
before the second auction and
2.169% Friday. Yields fall when
bond prices rise.
Sales of Treasury notes can
sometimes weigh on prices of
outstanding bonds as the market is forced to absorb the
new debt.
After Monday, traders still
need to deal with a $28 billion
auction of seven-year notes on
Tuesday.
But the fact of “two-thirds
of this week’s supply being
over with” was enough to
prompt a “little bit of a relief
rally,” said Daniel Mulholland,
head of U.S. Treasury trading
at Crédit Agricole.
Treasurys came into this
week with momentum.
Before Friday, investors
and analysts had thought
there was a small chance Federal Reserve Chairwoman
Janet Yellen, in a speech at
Jackson Hole, Wyo., could
challenge the prevailing view
that the Fed is unlikely to
raise interest rates for a third
time this year. Instead, she focused on financial regulation,
removing what had been one
of the few clear risks to the
market.
HONG KONG—The Hong
Kong stock exchange’s 31year-old trading hall is set to
close this fall, but not without
some pushback from its remaining tenants.
Stock-exchange operator
Hong Kong Exchanges &
Clearing Ltd. said this month
that it would shut the trading
floor, one of the few remaining such venues in major
global markets, in October. It
plans to convert the venue
into an exhibition area.
Only about 30 people now
work in the trading hall on a
normal day, according to
HKEx, compared with nearly
1,000 during its heyday in the
1980s and 1990s. Almost all
trading there is conducted
electronically, the same way
brokers buy and sell stocks
from an external location.
Yet many brokers are
struggling to accept the decision. In a letter sent to Hong
Kong’s
government
this
month, reviewed by The Wall
Street Journal, a group of 30
remaining floor traders bemoaned the closure, as well as
the long-term difficulties
faced by independent brokers.
“As Hong Kong’s economy
took off, the HKEX also became one of the world’s most
famous securities exchanges,
and we all felt proud for being
a member of it,” a translation
of the letter said.
“There are still a group of
observant and conscientious
people who aspire to reignite
the lights here. Why can’t we
be of one mind and make concerted efforts to rekindle the
past glory?” it said.
The rise of electronic trading since the 1990s has led to
the steady demise of traditional floor trading globally,
making obsolete big, open
spaces where shouting and
hand signals were typically
used to make trades. Better
GERHARD JOREN/LIGHTROCKET/GETTY IMAGES
An era is ending in
Hong Kong as
exchange operator
shuts once-busy hall
Nearly a thousand people worked in the trading hall, shown in 1992, in its heyday. Only about 30 work there on a normal day now.
technology has made trading
far cheaper, allowing big players to lower the commissions
they charge to clients, in turn
hurting smaller brokers who
are unable to withstand lower
margins.
The trading floor at the
New York Stock Exchange remains a rare holdout, although it has significantly
pared down the number of active traders there in recent
years.
“There are very few trading
floors left around the world
where there are substantial
amounts of volume done,”
said Andy Nybo, a director at
Burton-Taylor International
Consulting. “The vast majority of cash equity trading is
done electronically.”
Hong Kong’s stock exchange played host to 906
trading booths at its peak,
with each able to accommodate two traders. Today, there
are only 62 active desks: In
two trips to the exchange last
week, there were only about a
dozen people on the floor
each time, with the ambience
more akin to a library than a
loud, energetic trading floor.
In the letter, the group of
floor traders lamented what
they see as a lack of support
they have received to counter
the long-term decline in brokerage fees and commissions,
their main source of revenue,
in the face of stiff competition
from larger banks and brokerages.
“The Hong Kong exchange
and the Hong Kong government have been turning a
blind eye to our plight...using
the excuse that ‘Hong Kong is
a free market’ to get rid of
any responsibilities,” the letter said. “The reason that
there are fewer and fewer
floor traders at the exchange
was caused by the existing
malignant system, and all of
their contribution has been
obliterated and sacrificed.”
In response, HKEx said it
had been working hard with
market
practitioners
to
strengthen the competitiveness of the Hong Kong finan-
cial market. “Local brokers
and other participants are important to us and we appreciate their contribution to the
market,” the exchange said.
Christopher Cheung Wahfung, chief executive of
Christfund Securities, which
has a trading desk at the exchange, said he is sad about
the exchange closing its trading hall but understands the
reasoning.
“We always told ourselves
that one day this would end,”
he said. “We are not surprised, but we have deep feelings about this place and hope
that it can still exist.…Every
day, we sat together and the
mood was very infectious. But
that feeling of solidarity is
lost if we were scattered and
trade from different places.”
His one final wish: to get
as many traders as possible
back together in red jackets
for a final group picture the
night before the trading hall
closes.
—Yifan Xie
contributed to this article.
AUCTION RESULTS
Here are the results of Monday's Treasury auctions.
All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference
between that price and the face value.
13-WEEK AND 26-WEEK BILLS
13-Week
26-Week
$118,235,774,700 $112,595,677,600
$39,000,554,700 $33,000,254,600
$537,189,700 $397,380,300
$200,000,000 $1,000,000,000
99.742167
99.436306
(1.020%)
(1.115%)
1.037%
1.137%
Coupon equivalent
17.48%
38.58%
Bids at clearing yield accepted
912796ME6
912796LN7
Cusip number
Applications
Accepted bids
" noncomp
" foreign noncomp
Auction price (rate)
Both issues are dated Aug. 31, 2017. The 13-week bills
mature on Nov. 30, 2017; the 26-week bills mature on
March 1, 2018.
TWO-YEAR NOTES
$75,080,634,800
Applications
$26,814,999,800
Accepted bids
$111,428,700
" noncompetitively
$100,000,000
" foreign noncompetitively
99.813152
Auction price (rate)
(1.345%)
1.250%
Interest rate
1.69%
Bids at clearing yield accepted
9128282T6
Cusip number
The notes, dated Aug. 31, 2017, mature on Aug. 31,
2019.
FIVE-YEAR NOTES
$88,841,291,200
Applications
$35,065,701,200
Accepted bids
$91,965,200
" noncompetitively
$0
" foreign noncompetitively
99.442075
Auction price (rate)
(1.742%)
1.625%
Interest rate
18.98%
Bids at clearing yield accepted
9128282S8
Cusip number
The notes, dated Aug. 31, 2017, mature on Aug. 31,
2022.
Storm Drives Up Refiners’ Stocks Gold Sets Its Highest
Shares of companies that
churn crude into fuel rallied,
as Tropical Storm Harvey inundated the Texas Gulf Coast
with punishing rains.
Refining caEQUITIES pacity totaling
more than two
million barrels a
day has been taken offline,
causing prices of gasoline and
diesel fuel to jump on concerns
supplies will be tight with
fewer refineries able to churn
out fuel. That reduced demand
weighed on oil prices.
As a result, companies with
plants that are still up and running—especially those with
plants nowhere near the
storm—stand to benefit from
surging refining margins. Shares
of PBF Energy Inc., which has
refineries in Delaware, New Jersey, Ohio, California and Louisiana, rose 8.3% on Monday. HollyFrontier
Corp.,
largely
concentrated in the Midwest,
gained 6.5%. Andeavor, with refineries in California, Utah and
Washington, added 3.2%.
Even companies that have
been affected by Harvey
gained, including Valero En-
Travelers Takes
Bite Out of Dow
Shares of property-insurance
companies fell Monday, the first
trading session after Hurricane
Harvey came ashore in Texas.
With floodwaters in Houston still rising, Travelers Cos.
dropped 2.6%, by far the worst
performer in the Dow Jones Industrial Average. It took 22
points off the Dow as the bluechip index fell 5.27 points in total. Travelers is a major insurer
of businesses and also sells
home and auto insurance.
Initial reaction from Wall
Street analysts that track the
insurance industry is that business insurers, specialty insurers
and reinsurers will be the hardest hit by the storm. Reinsurers
provide insurance to insurance
companies to protect them
from catastrophic losses.
MARK RALSTON/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY ALISON SIDER
A boat is nearly submerged in front of a Texas oil rig on Sunday.
ergy Corp., Marathon Petroleum Corp. and Phillips 66.
Refiners tend to benefit from
disruptions that lift fuel margins. In prior Gulf Coast hurricanes, refining shares have outperformed major indexes by as
much as 19% in the days following landfall, says Wells Fargo
analyst Roger Read.
“Overall, each refining company will tend to benefit (at
least from a margins, earnings,
and stock price perspective)
Among the big decliners
were Axis Capital Holdings Ltd.
and Aspen Insurance Holdings
Ltd., which both fell 3.2% Monday, and XL Group Ltd., down
2.7%. All three are Bermudabased companies that sell specialty insurance and reinsurance.
Car insurer Progressive
Corp. fell 2.3%. Progressive has
about 9% of the auto-insurance
market in Texas, according to
data provider SNL Financial.
Insurers that sell significant
amounts of home insurance,
such as Allstate Corp., fell less.
The worst and most widespread damage from the storm
is expected to be caused by
flooding, which largely isn’t covered by homeowners’ policies.
Allstate, which fell 1.5%, is
the second-largest home insurer in Texas, with a market
share of about 13%, according
to SNL. State Farm is larger
but isn’t publicly traded. They
are also the first and second-
from periods of disruption like
this, even if they have assets
affected,” Raymond James analysts wrote in research note.
Adding to investors’ optimism is that there have been
few reports that plants in the
storm’s path have been damaged. Several refiners in Texas
have stopped making fuel or
slowed down, but many reported that the move was a
precautionary measure, or a
necessary response to logistical
issues with pipelines and ports.
Valero has said its Corpus
Christi-area refineries are relatively unscathed and it is looking at ways to restart them.
Citgo Petroleum Corp. said it
is “assessing the refinery” but
didn’t provide a restart date.
“At this stage, most of the
refining outages are reported
as preventive, with only a few
comments on minor flooding.
However, the slow moving nature of the storm will likely
lead to these shutdowns continuing in coming days,” analysts at Goldman Sachs wrote
Monday. They said another
850,000 barrels a day of refining capacity could be hobbled if
the storm moves further east.
And the worst may not be
over for plants in Houston,
where the storm is expected to
make landfall again on
Wednesday, and flooding is expected to worsen. Flooding can
ruin the electric pumps that
send crude through a refinery’s complex network of piping, and an influx of brackish
water can lead to corrosion.
Repairs for serious issues can
take weeks or even months.
—Dan Molinski
contributed to this article.
storms do less damage to their
balance sheets. The propertyDownturn
Shares of property insurers began and-casualty insurance industry
Monday’s session with a sharp drop. had a surplus of $709 billion in
the first quarter, a record, acChange since Wednesday
cording to trade group Insurance Information Institute.
1%
Past catastrophes sapped
enough capital from the industry
0
that insurers raised prices, but
analysts said Monday that didn’t
–1
appear likely from Harvey’s apparent damage so far. Wells Fargo
–2
Securities analyst Elyse GreenAllstate
span wrote that her view of the
–3
Travelers
industry was unchanged, saying
Progressive
it would take “a series of losses
–4
impacting the balance sheets of
Thursday Friday
Monday
insurers” to drive up prices.
Source: FactSet
One stock rising Monday
THE WALL STREET JOURNAL.
was insurance broker Brown &
Brown Inc. Ms. Greenspan
largest car insurers in the state. noted that the firm helps adFor more than a decade,
minister claims for the U.S. govhome insurers have been boost- ernment’s National Flood Insuring premiums and reducing the
ance Program. Its shares rose
amount of coverage they sell in 2% to $45.16, their highest since
hurricane-prone areas so major
January.
—Erik Holm
Close in Nearly a Year
BY AMRITH RAMKUMAR
Gold prices continued
climbing, buoyed by a weaker
dollar after a recent meeting
of global central bankers offered few clues about the future
of
COMMODITIES m o n e t a r y
policy.
Gold for
December delivery closed up
1.3% at $1,315.30 a troy ounce
on the Comex division of the
New York Mercantile Exchange. Monday’s advance
marked the most actively
traded gold contract’s largest
one-day advance since May 17
and its highest close since
September 2016. The precious
metal closed Friday at its
highest level since early June
after speeches by Federal Reserve Chairwoman Janet Yellen and European Central Bank
President Mario Draghi at the
Jackson Hole, Wyo., economic
symposium didn’t specifically
address the timing of future
interest-rate increases.
Division among Fed officials
about when to raise rates amid
sluggish inflation has been one
of the factors supporting gold
prices this year, as the precious metal struggles to compete with yield-bearing assets
such as Treasurys when borrowing costs rise.
Some investors and analysts said they had hoped for
some clues from Jackson Hole
about plans to unwind monetary stimulus, driving the dollar lower. A weaker dollar
makes gold less expensive to
foreign buyers. The WSJ Dollar Index, which tracks the
U.S. currency against 16 others, fell 0.2% Monday.
Gold prices spiked around
11 a.m. EDT, jumping from
roughly up 0.5% to up 1%, before continuing to tick higher.
“You caught a group of
buys there,” said Ira Epstein, a
strategist at Linn Group. “Gold
is spiking because the central
bankers really didn’t do anything,” he said.
U.S. political uncertainty
has also supported gold prices
in recent sessions, with worry
about the federal debt ceiling
creeping into the market.
Still, with gold prices up
14% so far this year, some investors and analysts cautioned
against reading too much into
Monday’s move higher, with
markets in the U.K. closed for
a public holiday.
Many think it will be tough
for the precious metal to climb
much higher unless geopolitical tension between the U.S.
and North Korea escalates.
Threats by the two countries
had supported gold prices in
recent weeks, as many investors favor gold during times of
political uncertainty.
“Unless we get some real
tensions going, there’s no real
reason for gold to move up,”
said Christopher Ecclestone,
1.3%
Rise in the most-active gold
contract, to $1,315.30 an ounce
mining strategist at research
firm Hallgarten & Co.
Many investors and analysts are waiting to see
whether gold can stay above
$1,300, a key technical barrier,
in coming days.
Personal-consumption expenditures inflation data and
the monthly jobs numbers are
due later this week, which
could affect some investors’
views about the possibility of
a third interest-rate increase
in 2017.
Among base metals, copper
for September delivery rose 1%
to $3.0630 a pound, its highest
close since November 2014.
Chinese economic strength
and supply disruptions have
boosted the outlook for copper
this summer, and many investors will be closely watching
economic data out of China
later in the week to see
whether the recent rally can
continue. China accounts for
nearly half of the world’s copper consumption.
B12 | Tuesday, August 29, 2017
THE WALL STREET JOURNAL.
* ***
MARKETS
Harvey Hammers Energy, Insurer Stocks
Investors try to gauge
tropical storm’s
impact as they await
new economic data
BY AKANE OTANI
The Dow Jones Industrial
Average
inched
lower,
weighed down by declines in
shares of energy and insurance companies.
The blueMONDAY’S
chip
index
MARKETS
wobbled in a
narrow range
for much of
the session, extending a recent
pattern of quiet trading.
Investors and analysts have
attributed the lull to the scarcity of major economic data and
the winding down of the second-quarter earnings season.
Activity is expected to pick
up in coming days, as investors
look toward the latest estimates for second-quarter gross
domestic product, personalconsumption expenditures and
monthly employment.
So far this year, the data
have largely suggested the
global economy is on steady
footing, which should help
stocks keep climbing as corporate profits grow, investors say.
“It feels like we’re in a
sweet spot for financial assets,
where you have a synchronized
global expansion while inflation remains low,” said David
Donabedian, chief investment
officer at CIBC Atlantic Trust
Private Wealth Management.
“There’s a lot of focus on
Washington, but we shouldn’t
forget that the strong economic backdrop is always the
single most important backdrop for equity markets.”
The Dow industrials fell
5.27 points, or less than 0.1%,
to 21808.40 on Monday, led by
a decline in insurer Travelers
Cos. Travelers fell $3.24, or
2.6%, to $123.23 amid a broad
decline in shares of propertyinsurance companies following
Tropical Storm Harvey.
The S&P 500 rose 1.19
points, or less than 0.1%, to
2444.24 and the Nasdaq Composite added 17.37 points, or
0.3%, to 6283.02.
Energy stocks in the S&P
500 fell along with oil prices as
investors struggled to gauge
the fallout from the storm,
which has disrupted operations
at major refiners in Texas.
The S&P 500 energy sector
fell 0.5%. Chesapeake Energy
declined 14 cents, or 3.7%, to
3.65, Range Resources shed
58 cents, or 3.2%, to 17.59, and
Helmerich & Payne lost 1.29,
or 2.9%, to 43.49. The sector is
on course for its worst month
since at least 2015, even after
a number of oil companies reported stabilizing earnings.
Gasoline futures surged,
with the contract for September delivery rising 2.7% to
$1.7123 a gallon, on the potential for a shortage in gasoline
supply. Reduced refining capacity is also expected to hit
U.S. crude demand. U.S. crude
for October delivery fell 2.7%
to $46.57 a barrel, its lowest
settlement since July 24.
Elsewhere, Gilead Sciences
rose 90 cents, or 1.2%, to 74.69
after the biotechnology company agreed to pay about $11
billion for Kite Pharma.
Shares of health-care companies in the S&P 500 jumped
0.6%, leading advances among
the broad index’s 11 sectors.
The Stoxx Europe 600 shed
0.5%, logging its sixth decline
in eight trading sessions.
Early Tuesday, Japan’s Nikkei Stock Average was down
0.6% after North Korea
launched a ballistic missile
over Japan. The yen strengthened against the U.S. dollar as
investors sought havens like
the yen and gold. The dollar
was trading at ¥108.67, compared with ¥109.26 late Monday in New York. Meanwhile,
gold traded at $1,323 a troy
ounce early Tuesday, up from
the $1,309.70 settlement Monday.
Stalling
Declines in shares of energy companies pressured the S&P 500 and Dow Jones Industrial Average.
0.2%
Performance Monday
0.1
S&P 500
s0.05%
0
DJIA
t0.02%
–0.1
–0.2
One-minute intervals
9:30
10
11
noon
Shares of oil and gas companies fell
as Tropical Storm Harvey disrupted
operations at U.S. refiners.
1
Oil prices fell while gasoline futures jumped
as analysts warned that the impact from
Harvey could last for several weeks.
2%
Meanwhile, shares of biotechnology
companies rallied, giving a boost to
the Nasdaq Composite.
Performance Monday,
most-active contract
Performance Monday
4
2.0
2
1.5
Anadarko Petroleum
t2.6%
0
Helmerich & Payne
t2.9%
Chesapeake Energy
t3.7%
–2
1.0
0
–4
Crude oil
t2.7%
–2
–4
One-minute intervals
9:30 10
11
noon
1
2
3
4
Nasdaq Biotechnology Index
s 1.9%
Gasoline
s 2.0%
3
6
9
noon
2
9:30 10
Hurricane’s Lessons for U.S. Oil
Net crude input into U.S. refineries
16
15
14
Weekly
13
2012 ’13
’14
’15
’16
’17
Note: Final figure as of Aug. 18.
Source: Energy Information Administration
AGENCE FRANCE PRESSE/GETTY IMAGES
18 million barrels a day
THE WALL STREET JOURNAL.
A refinery in Texas City
after the storm hit
about 90% on average over
the past 12 months. The
heaviest concentration is
along the Gulf Coast, where
the industry has deep roots.
Harvey, now downgraded to
a tropical storm, has temporarily knocked out about 15%
of U.S. refining capacity.
Moving the refined product to customers also falls
disproportionately on a few
pieces of infrastructure. The
Colonial Pipeline carries over
2.5 million barrels a day, or
about half the refined product consumed along the entire East Coast. Last year saw
severe disruptions to gasoline
supply in the Southeast due
to construction accidents
along one of its sections.
Natural gas, America’s
main heating and power-generation fuel, is prone to disruption, too. In the aftermath of hurricanes Rita and
Katrina, it was discovered
that storm surges had damaged treatment plants along
the Gulf Coast. Prices hit a
high a few months later, in
December 2005, and supplies
weren’t back to normal until
six months after the storm.
There is good news, too.
Greater trade in oil, motor fuels and natural gas means
that the market can respond
more quickly to disruptions.
European and Asian refiners
already are scrambling to
take advantage of northeastern U.S. gasoline price spikes.
Meanwhile, vulnerable offshore facilities produce a
much smaller share of American oil and natural gas than a
decade ago, as a result of the
fracking revolution.
Yet these are all happy side
effects of market and geological developments, not by design. The profit motive mostly
means that, in the interest of
efficiency, more energy passes
through fewer, busier pieces
of infrastructure. Building
more redundancy into the
system might be costly, but
failing to do so will seem foolish if a truly epic catastrophe
leaves America with empty
tanks and in the dark.
—Spencer Jakab
OVERHEARD
Company executives who
complain about short sellers
should think before they
speak. Biotech company aTyr
Pharma announced a $45.8
million equity financing on
Monday at an 81% discount
to its 2015 initial public offering price.
The company raised cash
at such a dismal price just
over a month after senior finance executive John Blake
testified to Congress about
investors who bet against
shares of biotech companies.
“We strongly believe that
the current lack of transparency related to short positions is enabling trading behaviors that unfairly harm
growing companies, long-term
investors and, most importantly, patients,” he said on
July 19. The causes of the decline were more likely repeated clinical disappointments at aTyr, and very high
initial valuation, not short
sellers. In fact, Mr. Blake’s
testimony was a good sell
signal; shares are down
about 20% from that day’s
closing price.
New Uber Chief Appears to Have the Goods for Next Step
If Uber Technologies
were a publicly traded company, its shares would likely
be surging after its board
voted to appoint Dara Khosrowshahi as its new leader.
And it is Mr. Khosrowshahi’s
ability to prepare Uber for
an initial public offering that
gives its investors the greatest reason for cheer.
As the chief executive of
Expedia since it was spun
off from IAC/InterActiveCorp in August 2005, Mr.
Khosrowshahi has taken a
struggling company and
turned it into a successful
part of an online travel
duopoly. Meanwhile, he has
presided over a nearly sevenfold increase in the com-
$150
What a Ride
Expedia's share price
125
100
75
50
25
0
2005
’10
’15
Source: WSJ Market Data Group (weekly)
pany’s share price and the
addition of more than $14
billion to its market capitalization. Shares of Expedia
fell 4.5% Monday.
For Uber, Mr. Khosrowshahi brings expertise in
both travel and technology.
He revamped Expedia’s platform, making it more nimble,
better able to join with other
brands and easier for consumers to use. Mr. Khosrowshahi may even be able to
help the ride-hailing company expand deeper into the
travel business.
Mr. Khosrowshahi also has
shown himself to be a tough
negotiator. Expedia at one
point used a tactic called
“dimming” to deliberately
minimize a hotel’s appearance or ranking on its platform.
“He’s got a little bit of
Travis in him,” said Perry
Gold, an analyst with MoffettNathanson, referring to
Uber’s former CEO, Travis
Kalanick. “But he’s also a lot
more buttoned up than Travis. He’s a professional.”
Like Uber, Expedia is a
complex, global organization.
It also has prioritized longterm investment. Mr. Khosrowshahi’s awareness of
what it takes for a technology company to compete
may have set him apart from
other candidates.
At the same time, his
background at IAC, where financial acumen is a key part
of the DNA, suggests he is
savvy about the metrics and
practices that appeal to investors. In addition to completing numerous acquisitions, a spinoff of
One-minute intervals
11
noon
1
2
3
4
THE WALL STREET JOURNAL.
Sources: WSJ Market Data Group (indexes); FactSet (stocks, crude oil and gasoline)
Fuel Tilt
Nasdaq Composite
s 0.3%
0
15-minute intervals
1
0.5
FINANCIAL ANALYSIS & COMMENTARY
17
4
2.5%
6%
Performance Monday
–6
3
HEARD ON THE STREET
Email: heard@wsj.com
For more than 40 years,
the U.S. has worried about
the security of its oil supply.
Hurricane Harvey is another
reminder that the infrastructure that processes and delivers oil is in many ways
more important.
After the Arab oil embargo, the U.S. began filling
its Strategic Petroleum Reserve, which holds enough oil
to offset 94 days of imports,
according to the Energy Department. Yet it is a case of
the generals fighting the last
war. The U.S. imports about
25% less oil than it did a decade ago and exports over a
million barrels a day, up from
virtually nothing.
Harvey’s hitting the Gulf
Coast of Texas highlighted
another potentially significant change. The U.S. relies
on fewer facilities, run closer
to their physical limits, to
turn that crude into fuel and
get it to consumers.
The U.S. has 141 operable
oil refineries today, which is
79 fewer than 30 years ago.
Those refineries have nearly
30% more capacity and are
used much more heavily,
2
TripAdvisor in 2011 and the
IPO of Trivago in December
2016, Expedia pays a dividend and consistently buys
back stock.
Another skill that may
have been valued by Uber’s
board was Mr. Khosrowshahi’s ability to get along
with Barry Diller, Expedia’s
demanding chairman. Mr.
Kalanick, Uber’s ousted CEO,
remains a member of the
ride-hailing company’s
deeply divided board.
Mr. Khosrowshahi faces
serious challenges to get
Uber ready for public life.
His history says he has a
good chance of overcoming
them.
—Miriam Gottfried
WSJ.com/Heard
Gilead Has
Shown What
It Can Do
When taking a big chance,
it helps to have a good track
record. Such is the case at
Gilead Sciences.
The biotech company said
it would acquire Kite
Pharma, a biotech firm focused on personalized cancer
treatments, for $11 billion.
Gilead is paying a 29% premium to Friday’s closing
price, and Kite’s shares had
more than doubled over the
past six months. Gilead’s
shares closed 1.2% higher on
Monday.
Kite’s main treatment, axicel, is commercially unproven and faces significant
competition.
But for CEO John Milligan, standing pat was no
longer a realistic option.
Gilead’s once-booming hepatitis C franchise is in retreat.
Then there was the matter
of its bulging war chest.
Gilead had $36.6 billion in
cash and securities on its
balance sheet recently. Analyst questions about a new
acquisition had become incessant.
There is little doubt that
this management team has
earned investors’ trust as a
savvy buyer. Gilead’s acquisition in 2011 of Pharmasset
came at a 90% premium to
Pharmasset’s market price
and sparked worry that
Gilead had overpaid, but it
turned out to be one of the
most successful biotech
deals ever.
It is unrealistic for investors to expect similarly great
results with the Kite acquisition. The hepatitis C business still generates significant cash flow, and Gilead is
well-positioned to make
other deals.
A bright future isn’t
priced into Gilead’s stock.
Taking the other side of that
trade is a worthy idea.
—Charley Grant
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