For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. NASDAQ 6775.37 g 1.1% STOXX 600 387.47 À 0.9% 10-YR. TREAS. g 5/32 , yield 2.379% OIL $57.47 g $0.89 GOLD $1,274.30 g $4.50 Trump Signs Orders to Cut Back Federally Protected Lands in Utah What’s News Business & Finance T echnology, banking and other industries mounted a new round of lobbying to save a wide range of tax breaks following the lastminute switch in the federal tax overhaul by the Senate. A1 N EV. Grand StaircaseEscalante National Monument Bears Ears National Monument Reduced monument boundaries Previous boundaries U TA H 100 miles ARIZONA 100 km THE WALL STREET JOURNAL. ROUGH TERRAIN: President Donald Trump Monday moved to reduce the size of two Utah national monuments: The 1.35-million-acre Bears Ears, pictured, will be cut to about 200,000 acres and the 2-million-acre Grand Staircase-Escalante to nearly half. The decision faces a legal challenge. A6 Firms Press for Tax Breaks Ireland will begin collecting $15.46 billion in back taxes from Apple next year after an escrow accord. B5 Business lobbyists say Senate plan to keep corporate AMT would undercut tax overhaul Bitcoin futures will begin trading for the first time in the U.S. next week. B12 BY THEO FRANCIS AND RICHARD RUBIN Woodbridge filed for chapter 11, as the real-estate developer faces SEC questions over its fundraising. B6 Mulvaney said he has frozen the CFPB’s collection of personal information due to cybersecurity concerns. B6 World-Wide Five-day performance 4% Dow Jones Industrial Average s3.0% 2 0 –2 Nasdaq Composite t1.5% Tuesday Wednesday Thursday Friday Source: WSJ Market Data Group The president signed orders to slash the size of two monuments in Utah, the largest-ever withdrawal of federally protected lands. A6 Supreme Court justices voiced skepticism over a federal law that bans sports betting in most states. A6 Mueller’s office withdrew its support for a less-restrictive confinement of Mana– fort pending his trial. A3 Britain and the EU failed to reach a deal to advance talks on the U.K.’s exit. A8 The U.S. and South Korea began five days of war exercises on the peninsula. A7 A Spanish judge ordered the release of six ex-Catalan government officials. A8 Died: John Anderson, 95, congressman who ran as independent for president. A6 Opinion.............. A17-19 Sports........................ A16 Streetwise.............. B12 Technology.......... B4-5 U.S. News............. A2-6 Weather................... A14 World News...... A7-11 > s Copyright 2017 Dow Jones & Company. All Rights Reserved The Dow Industrials have been buoyed by the promise of tax cuts that may help manufacturers and financial companies, but the tech-heavy Nasdaq has given back some of this year’s gains. B13 no Arab leaders appealed to the U.S. not to declare Jerusalem Israel’s capital, saying the move would undermine efforts at peace talks. A11 Israel recently warned Syria of a possible strike if Iran is allowed to set up military bases there. A11 CONTENTS Business News.. B3,6 Capital Journal...... A4 Crossword.............. A14 Heard on Street.. B13 Life & Arts...... A13-15 Markets............. B13-14 Technology, banking and other industries mounted a new round of lobbying Monday to save a wide range of tax breaks following the last-minute switch in the federal tax overhaul by the U.S. Senate. The Senate on Saturday decided to keep a corporate al- n- Yemen's ex-president was killed after he renounced his alliance with Houthi rebels, opening an uncertain chapter in the nation’s conflict. A1, A10 Trump gave his strongest endorsement yet to Alabama Republican Senate candidate Moore. A4 ternative minimum tax, or AMT, a move that gave the senators $40 billion over a decade to use on other priorities, according to the official estimate. The move blindsided CEOs and business groups, who acted quickly on Monday to try to persuade legislators to kill or modify the provision, arguing that keeping it would undercut several goals of the legislation, including fostering investment in the U.S. The corporate AMT is a parallel system with low rates and fewer breaks that kicks in if a variety of tax breaks bring a Dow Gets a Boost, While Tech Lags The Supreme Court said the Trump administration for now can implement all parts of its latest ban on travelers from certain countries. A1 YEN 112.41 Justices Say Travel Ban Can Proceed For Now WASHINGTON—The Supreme Court on Monday said the Trump administration for now can implement all parts of its latest ban on travelers from certain countries, a significant boost to the White House after a string of setbacks in lower courts. The high court’s action came in a brief written order that granted an emergency request by the administration to let the rules take full effect while litigation challenging the travel restrictions continues. The Supreme Court hasn’t yet had an opportunity to resolve legal questions about President Donald Trump’s efforts, but Monday’s order suggests Mr. Trump could face favorable prospects when a full case on the travel ban gets to the high court. Mr. Trump, citing nationalPlease see TRAVEL page A6 ly . Workers who receive tips could be required to share them with nontipped colleagues under a proposed Labor Department rule. A2 Salt Lake City co Fo m rp m e er rs ci on al a us l, e on The Dow rose 58.46 points to 24290.05, but tech declines weighed on the S&P 500 and Nasdaq. B13 ANDREW CULLEN/REUTERS The SEC announced the first-ever enforcement action by its new cyber unit against an initial coin offering. B1 Broadcom said it plans to submit candidates for Qualcomm’s board, shifting its takeover bid to higher gear. B3 EURO $1.1865 BY BRENT KENDALL WYOMIN G IDAH O The CVS-Aetna combination will attempt to create a major integrated health-care enterprise that isn’t built around doctors. B1 Facebook launched a messaging app for children between the ages of 6 and 12, its youngest audience yet. B1 HHHH $4.00 Monday THE WALL STREET JOURNAL. The Apostrophe Catastrophe: Its You’re Smartphones Fault i i firm’s regular tax bill too low. Currently, the corporate AMT of 20% rarely applies, since most corporations face a higher 35% tax rate and benefit from breaks eligible under both systems. With a proposed 20% corporate rate, many companies could end up in the AMT—and lose some of their tax breaks in the process. Business lobbyists argue that keeping the corporate AMT would make it harder for tech companies to claim tax credits for research and development spending and for banks to claim credits for Late tax changes buoy some industries..................................... A4 Laura Saunders: Many will need to adjust paychecks... B1 President Backs Moore Trump endorsed the Alabama GOP Senate candidate and the RNC restored its support...... A4 Crisis in Yemen Deepens As Ex-Leader Is Killed SAN’A, Yemen—Yemen’s former president was killed Monday after his alliance with Houthi rebels collapsed, opening an uncertain chapter in a conflict that has left thousands dead and fueled a regional power struggle between Saudi Arabia and Iran. Ali Abdullah Saleh effectively renounced his alliance with the rebels on Saturday, saying he was open to dialogue with the Saudi-led military coalition that his forces and the Houthis have been fighting since 2015. His announcement plunged the capital San’a into violence INSIDE i Once a versatile star, the quirky little mark can’t cope with the age of texting BY MIKE CHERNEY eroded many English rules, but the apostrophe’s fall from The poor apostrophe. As if grace has been particularly things weren’t hard enough dramatic. It once had high status for for the little mark already, social media and smartphones its versatility. It created poshave made us even less likely sessives and contractions and single quotation marks. On to give it a little respect. old typewriters, one Autocorrect can could type it, backproduce “it’s” for space, and add a “its” in texting apps period to create an or offer an errant exclamation point! left-hand single Sure, the aposquotation mark. trophe faced abuse, Certain databases such as in what don’t recognize the Apostrophe key grammarians deapostrophe. Masses rided as the “greenof social-networkgrocer’s apostrophe,” after ers ignore its rules. Dan Kenitz, a 33-year-old vendors whose signs hawked Wisconsin writer and editor, “apple’s” or “carrot’s.” But now “the apostrophe is skips apostrophes when texting friends with words such on its way out,” says Nenagh as “you’re” to avoid toggling Kemp, who led a 2017 study of texting at the University of to the symbol keyboard. “That’s my compromise,” Tasmania. With texts and sohe says. “At least I care cial media, she says, “the enough to get the spelling message is the main thing, rather than the correctness of right.” Please see MARK page A12 The mobile-social age has investing in troubled U.S. areas. It also could undermine the international-tax structure Republicans created elsewhere in the same bill, undercutting incentives to put intellectual property in the U.S., tax experts say. The provision is “hugely problematic,” said Jennifer McCloskey, director of government affairs at the Information Technology Industry Council, Please see TAXES page A4 DANIEL ACKER/BLOOMBERG NEWS DJIA 24290.05 À 58.46 0.2% WSJ.com TUESDAY, DECEMBER 5, 2017 ~ VOL. CCLXX NO. 132 * * * * * * GIVE YOUR BRAIN A WORKOUT LIFE & ARTS, A13 U.K.-EU BREXIT NEGOTIATIONS STALL WORLD NEWS, A8 By Mohammed al-Kibsi, Saleh al-Batati and Asa Fitch between his fighters and the rebels, who control the city. Early Monday Houthi forces said they had killed Mr. Saleh in an attack on his convoy outside the capital. A person close to Mr. Saleh confirmed the exleader’s death. Mr. Saleh, whose authoritarian rule spanned more than three decades until he was forced to step down during the Arab Spring protests in 2011, was considered a wily politi- cian who had a unique ability to juggle the multifaceted elements of Yemen’s society. Saudi Arabia had been trying for months to drive a wedge between Mr. Saleh and the Houthis, said Stephen Seche, who served as U.S. ambassador to Yemen from 2007 to 2010. His death makes it easier to paint the Houthis as an Iranian-assisted and -funded proxy force, he said. “The U.S. will see this as another reason for D.C. to double Please see YEMEN page A10 Saleh forged alliances to maintain power........................ A10 Dollar General Is Rural America’s Indispensable Store Its core customers—lower-income, rural shoppers—are increasing in number BY SARAH NASSAUER EVENSVILLE, Tenn.—The local Dollar General store, built on a rural highway and surrounded by farmland, sells no fresh meat, greens or fruit. Yet the 7,400square-foot steel-sided store has most of what Eddie Watson needs. The selection echoes a suburban drugstore chain, from shower curtains to breakfast cereal, toilet paper, plastic toys and camouflagepattern socks. Refrigerators and freezers on one wall hold milk, eggs and frozen pizza. Many items are sold in mini bottles or small bags, keeping costs lower than a trip to the Wal-Mart Supercenter down the road. The two registers are staffed by one cashier, except during rush hours after school and after work. “It’s just closer,” said Mr. Watson, a 53-year-old construction worker who filled his cart with cans of chicken soup, crackers, cold cuts and toilet paper. “We call this the Evensville Wal-Mart.’ ’’ The store, 10 miles from the nearest small town, is one of three locations in Rhea County where Dollar General plans to open stores by next year. More than one in five people there receive government food assistance, higher than the U.S. average, and the county has Tennessee’s highest unemployment rate. Dollar General is expanding because rural America is struggling. With its convePlease see DOLLAR page A12 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. A2 | Tuesday, December 5, 2017 U.S. NEWS Change Proposed on Who Gets Tips Rule would let owners require workers to split gratuities with peers who don’t get them BY ERIC MORATH WASHINGTON—Restaurant servers and other workers who receive tips could be required by their employers to share that money with nontipped colleagues under a proposed Labor Department regulation that undoes an Obama-era rule the restaurant industry has fought. The proposal, made public Monday morning, is a win for restaurant owners because that pooled tip money, and not the business itself, would be providing part of the compensation for staffers who don’t typically interact with customers. The proposed rule also would mean that by sharing that gratuity more widely, waiters bring home less tip income. The rule, subject to public comment before it is finalized, would likely have the greatest impact on the restaurant industry. But it could also apply at casinos, hotels and other establishments. The National Restaurant Association challenged the Labor Department’s 2011 restric- tion on so-called tip-pooling in court and has lobbied for the reinstatement of the practice. Tip-pooling “is a way to even the discrepancy between the front of the house to the back of the house,” said Angelo Amador, executive director of the Restaurant Law Center, an arm of the association. The Labor Department, in a statement, largely echoed that sentiment, saying such “back of the house” employees, those who don’t typically interact with the public, “contribute to the overall customer experience.” Worker advocates say restaurant owners should pay higher wages to cooks, dish- washers and other nontipped staff, rather than asking fellow employees to supplement those workers’ incomes. “Tips belong to the workers who have earned them—period,” said Christine Owens, executive director of the National Employment Law Project. To be required to share under the proposed rule, tipped workers must be paid at least the federal minimum wage of $7.25 an hour. Under federal law, workers who earn tips as part of their compensation can be paid a lower minimum, $2.13 an hour. Eight states don’t have a lower minimum for tipped workers. U.S. WATCH FEDERAL RESERVE ly . SORTING IT OUT: A worker in Florida on Monday for the Postal Service, which expects about 850 million packages over the holidays. and earned law- and businessschool degrees there, as well. He will start his new job on Jan. 1. The heads of the Fed’s 12 reserve banks are chosen by the nonbank directors of each institution. Finalists must also interview with and win approval from the Fed’s Washingtonbased board of governors. —David Harrison and Nick Timiraos BUDGET co Fo m rp m e er rs ci on al a us l, e on The Federal Reserve Bank of Richmond has selected Thomas Barkin, a top executive at McKinsey & Co., as its next president and chief executive, the bank said Monday. Mr. Barkin, 56 years old, succeeds Jeffrey Lacker, who stepped down in April after admitting his involvement in the unauthorized disclosure of Fed information to an analyst in 2012. Mr. Barkin has worked for McKinsey for about 30 years and is based in the firm’s Atlanta office, where his clients include financial institutions and travel and transportation companies. He is currently the global consulting firm’s chief risk officer and previously served as its finance chief. From 2009 to 2014, he sat on the board of directors of the Atlanta Fed, serving as chairman in 2013 and 2014. Mr. Barkin studied economics as an undergraduate at Harvard University JOE RAEDLE/GETTY IMAGES New President Picked At Richmond Bank THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Published daily except Sundays and general legal holidays. Periodicals postage paid at New York, N.Y., and other mailing offices. Postmaster: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. Only publication of an advertisement shall constitute final acceptance of the advertiser’s order. Letters to the Editor: Fax: 212-416-2891; email: email@example.com NEED ASSISTANCE WITH YOUR SUBSCRIPTION? By web: customercenter.wsj.com; By email: firstname.lastname@example.org By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat REPRINTS & LICENSING no n- By email: email@example.com By phone: 1-800-843-0008 We perfect each part of this watch by hand. Even the ones that you can’t see. GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS Trump, Congressional Leaders Set to Meet President Donald Trump and congressional leaders have scheduled a summit to begin sorting out their budget differences, top lawmakers and the White House said. The summit, set for Thursday CORRECTIONS AMPLIFICATIONS A Page One article on Nov. 25 about InfiLaw System law schools included criticism from David Frakt about the academic credentials of Florida Coastal Law School’s incoming students. The article omitted the company’s response that the school’s incoming class of 2013 had a median undergraduate grade-point average of 2.97 and that 73% of its graduates between 2007 and 2014 with an LSAT score below 145 passed the bar exam. Stride Health, which runs a platform that helps freelancers get health insurance, currently has $39 million in investment. A Small Business report article on Nov. 27 about apps for freelance at the White House, comes just a day before the expiration of federal funding that is needed to keep government agencies functioning beyond midnight Friday night. Complicating the search for a pact are disputes over immigration, health and other issues. Republican leaders want to push a bill through Congress this week keeping the government afloat through Dec. 22 as bargainers seek a longer-term spending pact. But the GOP will need Democratic votes to succeed, and potential opposition from Democrats and GOP conservatives has left the pathway unclear for averting a closure just weeks before the start of the 2018 election year. Hours before Trump and Capitol Hill leaders were to hold a budget meeting last Tuesday, House Minority Leader Nancy Pelosi (D., Calif.) and Senate Minority Leader Chuck Schumer (D., N.Y.) abruptly called off the session. The cancellation came after Mr. Trump took to Twitter to vilify their stances on taxes, immigration and crime and say he saw no prospects for an agreement. The two Democrats said they had accepted an offer from Mr. Trump to meet with them. —Associated Press workers said only that the company had raised $13 million in 2015. The prescription drug OxyContin was misspelled as OcyContin in a photo caption with a Business & Technology article Saturday about Food and Drug Administration approval of a new treatment for opioid addiction. “Small, harmless, coldblooded animals” including baby alligators and caimans up to 20 inches long are permissible to mail under postoffice rules. In some editions Monday, a Page One article about live animals in the mail incorrectly referred to coldblooded mammals. Readers can alert The Wall Street Journal to any errors in news articles by emailing firstname.lastname@example.org or by calling 888-410-2667. POLITICS Former Rep. Brown Is Sentenced to Prison A federal judge in Florida sentenced former U.S. Rep. Corrine Brown to five years in prison, followed by three years of probation, for fraud and other charges related to a purported charity for poor students that she used as a personal slush fund. The 71-year-old Ms. Brown will be allowed to turn herself in no earlier than Jan. 8. The Democrat served a Florida district that included Jacksonville during her nearly 25year career. She was convicted by a federal jury in May on 18 of the 22 charges against her, which included fraud and lying on her tax returns and on her congressional disclosures. —Associated Press M Y L A G O S M Y W AY Starting at $1,950 C AV I A R C O L L E C T I O N S AVA I L AB LE AT L A G O S . C O M BLOOM I NGDALE’S 59TH ST BERNIE ROBBINS / Newton, PA / 215.579.8224 HOROLOGIO / Las Vegas, NV / 702.733.0016 ZADOK JEWELERS / Houston, TX / 713.960.8950 www.baume-et-mercier.com For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Tuesday, December 5, 2017 | A3 * * * * ©T&CO. 2017 U.S. NEWS MEREDITH HEUER FOR THE WALL STREET JOURNAL(PHOTOS) TIFFANY T COLLECTION Former Newtown Police Chief Michael Kehoe in his home in Watertown, Conn. ‘To have that much in one day can really hit you hard,’ he says. Lessons Learned From Newtown The town opened a new Sandy Hook Elementary School in 2016. has several new initiatives aimed at officer trauma. One program focuses on collective healing within a police department and the broader community following a mass-casualty event. Another concentrates on improving resiliency to everyday trauma among officers. Mr. Kehoe, who retired in 2016 after more than three decades on the force, says he has learned to live with the horrors of Dec. 14, 2012, in part by working with police departments around the country to put in place mental-health care to support officers. Studies show that about 15% of police officers will develop Post-Traumatic Stress Disorder over the course of their career, said John Violanti, research professor at School of Public Health and Health Professions at the University of Buffalo. About one-third of officers will develop some PTSD symptoms, he said. In the immediate aftermath of traumatic events, it is common for a person to shake, have stomach butterflies and experience tunnel vision. The longterm effects, which may not show up for months or years, can include depression, anxiety, alcoholism, marital problems or suicidal thoughts. Prosecutors: Manafort Violates Judge’s Order no WASHINGTON—Special Counsel Robert Mueller’s office on Monday withdrew its support for a less-restrictive confinement of former Trump campaign chairman Paul Manafort pending his trial on moneylaundering and other charges. In a court filing, prosecutors alleged Mr. Manafort had been secretly writing an editorial with a business colleague “assessed to have ties to a Russian intelligence service” in violation of a court order. The court papers didn’t identify the business associate beyond saying he was a longtime Russian colleague who lives in that country. The pair were “ghostwriting” an op-ed in English regarding Mr. Manafort’s political work for Ukraine that was designed “to influence the public’s opinion” of the veteran political consultant, prosecutors wrote, alleging that it was “not a dispassionate recitation of the facts.” The prosecutors said the editorial would have violated U.S. n- BY DEL QUENTIN WILBER 800 843 3269 co Fo m rp m e er rs ci on al a us l, e on In the days following the 2012 school shooting at Sandy Hook Elementary School, Newtown, Conn., Police Chief Michael Kehoe would scream in his sleep, reliving the gruesome scene in his dreams. After encountering the mass killing of 20 schoolchildren and six adults nearly five years ago, Mr. Kehoe says he found himself overwhelmed at times. His relationship with his wife suffered because he ordered her around in an attempt to exert control. And he was racked with guilt. “To have that much in one day can really hit you hard,” says Mr. Kehoe, 62 years old. “This is your watch. This is your community. This is where you are paid to keep the community safe.” The Sandy Hook school shooting helped accelerate how police departments approach mental-health care for their officers, particularly in preparing for mass-casualty events. It prompted many police chiefs across the U.S. to become more receptive to proactively addressing trauma, said James Baker, director of advocacy for the International Association of Chiefs of Police. The police chief’s association Nearly every member of the Newtown Police Department’s 45-person squad was at Sandy Hook Elementary School the day of the shooting. Many are still with the force. “I think our officers are doing well,” says Police Chief James Viadero. “There’s been a lot of work getting us to the point where we are....We found what worked for us over here. It’s still ongoing.” The police department began working with HEART 9/11, an organization made up of first responders of the Sept. 11, 2001, terrorist attack that provides peer counseling to police officers, following the school shooting. Attitudes about counseling among cops have improved, said Bill Keegan, founder of the group. “There has been a cultural change,” Mr. Keegan said. Years ago, “there was that attitude of ‘suck it up, get over it, have a few beers.’ ” Looking back, Mr. Kehoe credits the counseling he received and the support of his wife for making him a better person who has come to grips with the tragedy. “Sometimes things are out of your control. What we did that day was save a lot of people,” he said. “Because if we don’t show up, others die.” District Judge Amy Jackson’s order in early November prohibiting either side from making public statements that might interfere with a fair trial. A spokesman for Mr. Manafort declined to comment. By writing such an op-ed, Mr. Manafort has proved he “is willing to violate a Court Order” and shouldn’t be trusted with more lenient bail conditions that had been negotiated with defense lawyers, prosecutors wrote. That deal, unveiled in court filings last week, would have released Mr. Manafort from home confinement at his residence in Alexandria, Va., as well as GPS monitoring. Mr. Manafort and a longtime business associate, Richard Gates, were indicted in late October on charges of conspiring against the U.S., money laundering, failing to file reports on foreign bank and financial accounts, as well as making false statements connected to their work for a pro-Russian political party in Ukraine. They have both pleaded not guilty. | TIFFANY.COM ly . BY JOSEPH DE AVILA For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. A4 | Tuesday, December 5, 2017 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X ****** THE WALL STREET JOURNAL. U.S. NEWS CAPITAL JOURNAL By Gerald F. Seib The tax bill is expected to pass the full Congress in coming days. undo the health law, known as Obamacare, and the concurrent exposure of deep intraparty divisions. Moreover, it’s clear that Mr. Trump’s barbs directed at senior members of his own party—Senate Majority Leader Mitch McConnell, Sens. John McCain, Jeff Flake and Bob Corker, and House Speaker Paul Ryan—don’t get in the way of the GOP uniting for something really important. The idea that Republicans can repeat that feat in 2018 on health and infrastructure doesn’t seem so farfetched. In short, the first year of the Trump presidency suddenly looks a lot better, which sets the table nicely for the 2018 midterm elections. Republican plans to make Democratic House leader Nancy Pelosi rather than Mr. Trump the unpopular face of the election year succeed. Republicans suffer some losses in House races but retain control of Congress. Meanwhile, the Mueller investigation picks off a few more figures around Mr. Trump but never quite proves either collusion with Russians or a presidential effort to obstruct justice. Mr. Trump manages to avoid stirring the pot with Twitter rants that actually make his case worse, and the inquiry wraps up early next year having struck blows but no fatal damage. The Negative Scenario: Middle-class Americans revolt against the tax bill, concluding that they agree with Democrats that the rich and corporations are the real beneficiaries, not them. Middle America also is frightened and then appalled by the tax bill’s coming boost to the national debt, and Trump voters decide the party and the president they supported in 2016 don’t share their commonsense aversion to running up big bills and leaving them for the kids. Meantime, a failure to agree on a new spending bill forces a government shutdown just before Christmas, and the GOP fails to put the blame off on Democrats. That instantly sullies Republicans’ newfound reputation for governing effectively. Corporate leaders don’t make the kinds of job-creating investments Republicans predict. Meanwhile, the tax cut’s stimulative effect overheats an economy already near full employment, pumps up an overextended stock market and compels the Fed to keep raising interest rates. The bubble bursts. The Obamacare infrastructure also collapses in 2018, and Republicans now are the party bearing the blame for health-market chaos. Something bad for Republicans happens in Alabama’s special Senate race next week. Either a victory by party nominee Roy Moore, who takes on those party leaders who disowned him over allegations of sexual misconduct involving teens, which he has denied, or a shocking Deep South victory by his opponent cascades into momentum for Democrats in 2018. Mr. Mueller uses information from Mr. Flynn and others to carry his inquiry deep into the Trump circle. Two potential nightmare scenarios for the White House emerge: Trump world financial entanglements with Russians gave the Kremlin leverage over the eventual president, and it’s shown Mr. Trump obstructed justice to stop investigators from finding out. Mr. Trump, feeling the pressure from Mr. Mueller, becomes ever more defensive and wedded to conspiracy theories that he vents on Twitter, as he did over the weekend. Impeachment by a Democratic House becomes a possibility. Either scenario is entirely plausible, which says plenty about today’s volatile climate. J. SCOTT APPLEWHITE/ASSOCIATED PRESS co Fo m rp m e er rs ci on al a us l, e on ly . In the era of President Donald Trump, when up can be down and down can be up, it’s no surprise that the Republicans’ hour of great accomplishment also is their hour of great peril. That is precisely where things stand as a new week dawns upon a thoroughly changed political landscape. Washington’s tectonic plates shifted twice last week, first when Special Counsel Robert Mueller announced a guilty plea from a now-cooperative former Trump national security adviser, Mike Flynn, and then when the Republican Senate passed the party’s top legislative priority, a giant tax cut. (And by the way, passage of a tax bill by the full Congress, which now seems nearly assured in coming days, was always the highest priority for most GOP leaders, outstripping even repeal of the Affordable Care Act.) The Republican establishment’s bargain with Mr. Trump always has been essentially this: It is worth putting up with his excesses and an undercurrent of mutual mistrust because ultimately he would promote and then sign the Republicans’ longsought tax cut. The benefits of the latter would outweigh the dangers of the former. Now the test of that proposition begins. Will it go well or badly for the GOP? Let’s look at the two potential scenarios for the party: The Positive Scenario: The tax cut and its benefits for American businesses extend and solidify already-robust economic and job growth. The prospect, and ultimately the reality, of greater business investment send positive ripple effects into wage growth. All that builds a firmer footing beneath a booming stock market. Politically, the tax bill erases 11 months of doubts about Republicans’ ability to govern effectively and washes away the party faithful’s memories of failed efforts to J. SCOTT APPLEWHITE/ASSOCIATED PRESS Republicans Feel Triumph, Fear a Debacle Senate Majority Leader Mitch McConnell (R., Ky.) on Friday, hours before the chamber passed a tax bill that included a last-minute decision to keep the corporate AMT. TAXES Republican senators inserted last-minute changes into their tax overhaul bill early Saturday morning, including ones aimed at helping cruise-ship operators, auto dealers and mortgage bankers. The question now is whether they survive as House and Senate lawmakers attempt to reconcile their bills into one measure that can pass both chambers. An amendment from Sen. Mike Rounds (R., S.D.) would exempt mortgage servicers from a provision in the bill that would have them pay taxes upfront on projected income they receive over the life of a mortgage. Current law says lenders can pay taxes as cash comes in. The Mortgage Bankers Association fought for keeping no Continued from Page One whose members include Amazon.com Inc., Apple Inc. and Alphabet Inc. “We will be working to see it resolved this week.” A Congressional aide familiar with the legislative change said it is unlikely the alternative minimum tax would have the dramatic effect that critics fear, since the Joint Committee on Taxation pegged its savings below the value of the R&D tax credit. Other tax experts, in contrast, warn the $40 billion estimate could prove too small. The House and Senate hope to reconcile competing versions of the tax overhaul and pass a final bill by Christmas. The corporate pushback is getting results. House Majority Leader Kevin McCarthy (R., Calif.) said Monday that negotiators from the House and Senate needed to remove the corporate AMT. The U.S. House’s tax-overhaul bill, passed Nov. 16, would eliminate the corporate AMT. Earlier drafts of the Senate bill would have as well, but changes to the version adopted in the early hours of Saturday morning preserved it. The discovery of the change sparked consternation among corporate lobbyists and trade associations over the weekend, including among members of the influential Business Roundtable, a trade association of chief executives at some of the biggest U.S. companies. Most of the overhaul was drafted without taking an alternative minimum tax into account, and so could conflict with it, tax experts concluded. For example, the Senate bill initially preserved the New n- Late Changes Buoy Some Industries Markets Tax Credit, which incentivizes projects in distressed areas and then reduces banks’ tax bills. The retention of the corporate AMT reversed that, said Michael Novogradac, managing partner of Novogradac & Co., a San Francisco accounting firm that specializes in the credit and similar breaks. “I know it’s got to harm some. And it may harm many,” he said. As emails flew, trade groups issuing statements broadly praising the Senate bill began to also raise concerns about the alternative minimum tax— and then urged action to reverse the decisions. “You really have to scratch your head at an effort like this that would negatively impact research and development in the U.S.," said Linda Moore, the status quo. It was a win for an industry that saw big losses from other provisions, including changes to mortgageinterest deduction rules. Sen. Rand Paul (R., Ky.) delivered a victory to auto dealers with an amendment aimed at preserving their ability to deduct interest on their inventory. The Senate tax plan includes a provision that would scale back the ability of companies to deduct interest on their debt, something the National Automobile Dealers Association fought hard against. Sen. Susan Collins (R., Maine) struck a deal to revert the medical expense deduction to levels in place before the Affordable Care Act. That would allow taxpayers to deduct medical expenses exceeding 7.5% of their income—compared with 10% under current law—for two years. While an aide to Ms. Collins said Friday the change would be available to all taxpayers, it was a win in particular for the AARP, which had lobbied to revert to pre-ACA treatment for senior citizens. Sen. Dan Sullivan (R., Alaska) scored an important win for the cruise-ship industry with an amendment striking a provision that would have raised taxes on cruise lines. A spokesman for Mr. Sullivan said the tax would have “disproportionately impacted the Alaska economy and its workers, particularly in communities that rely on cruise ship tourism.” Rather than give something out, Sen. Joni Ernst (R., Iowa) offered a rare amendment designed to take something away. Hers would eliminate a provision allowing members of Congress to deduct their living expenses from income taxes while they are living and working in Washington. —Kate Davidson and Joshua Jamerson CEO of TechNet, a trade association that includes top officials at Oracle Corp., Cisco Systems Inc., Visa Inc., and Microsoft Corp. On Monday, than two days after applauding the Senate for “This cannot be the intended impact from a Congress who has worked for years to enact a more globally competitive tax code,” Caroline Harris, its chief tax counsel, wrote on the trade group’s website. “The U.S. Chamber wants tax reform to be as pro-growth as possible, and that means repealing the AMT.” In a letter to the lawmakers who will hash out differences between the House and Senate bills, an Intel Corp. executive warned against maintaining the alternative minimum tax, writing on behalf of the R&D Credit Coalition and its 100-plus members. “Maintaining the corporate AMT will add the complexity of dealing with two tax systems and will penalize compa- The U.S. Chamber of Commerce called the reinstatement ‘a very unpleasant surprise.’ passing the tax bill, the U.S. Chamber of Commerce called the reinstatement of the AMT “a very unpleasant surprise,” saying it would prove more harmful under the overhaul than in current law. nies that engage in research,” wrote Ronald Dickel, Intel’s vice president of finance and director of global tax. Much of the R&D tax break goes to giant firms. Among S&P 500 companies reporting a combined $3.1 billion in tax benefit from the credit in 2016, roughly 85% went to 20 corporations, mostly in the technology, pharmaceutical and defense industries, according to an analysis by financial-data firm Calcbench. Last year, Alphabet reported a $483 million benefit from research tax credits, while Intel reported nearly $300 million, according to Calcbench. In the year ended Sept. 30, Apple reported $678 million. Intel declined to comment. Apple and Alphabet didn’t immediately respond to requests for comment. But smaller companies benefit as well, including a number of farm- and construction-equipment makers that belong to the Association of Equipment Manufacturers, said Kip Eideberg, vice president of public affairs and advocacy for the trade association. The corporate AMT’s effects are also worrying banks that hold municipal bonds, said Neil Barr, head of the tax department at Davis, Polk & Wardwell LLP in New York. The interest on that debt, normally tax-free, would effectively become taxable. Retaining the corporate AMT would also alter the new features of the international tax system that Senate Republicans wrote, Mr. Barr said. For example, companies that were counting on lower tax rates on foreign profits or profits from intangibles such as patents wouldn’t get them. —Doug MacMillan contributed to this article. Trump Fully Endorses Moore BY DANIEL NASAW WASHINGTON—President Donald Trump on Monday gave his strongest endorsement yet to Alabama Republican Senate candidate Roy Moore, linking his candidacy to the need to pass tax cuts, criminal-justice measures, stricter immigration laws and enforcement, and more. Mr. Trump’s statement in an early-morning tweet marked the first time the president has backed Mr. Moore by name since the former judge’s candidacy was rocked by allegations of sexual misconduct involving teenage girls decades ago, which he has denied. “Democrats refusal to give even one vote for massive Tax Cuts is why we need Republican Roy Moore to win in Alabama,” Mr. Trump wrote of the Dec. 12 Alabama election. “We need his vote on stopping crime, illegal immigration, Border Wall, Military, Pro Life, V.A., Judges 2nd Amendment and more. No to Jones, a Pelosi/ Schumer Puppet!” he said, referring to Democratic Senate candidate Doug Jones, and Democratic leaders Sen. Chuck Schumer of New York and Rep. Nancy Pelosi of California. After the president’s endorsement Monday, the Republican National Committee restored support for the Moore campaign it had cut off after the allegations of sexual misconduct emerged, an RNC official said. The restoration of support was reported earlier by Breitbart. Mr. Moore said in a statement that Mr. Trump followed up his Twitter endorsement by calling him from Air Force One. According to Mr. Moore, the president called him a “fighter” and ended the conversation by saying, “Go get ’em, Roy.” A White House spokesman said Mr. Trump had a positive call with Mr. Moore and “endorsed Judge Moore’s campaign.” In the primary election for the Alabama Senate race, Mr. Trump endorsed Sen. Luther Strange, the incumbent who was appointed this year to fill the seat left vacant by Attorney General Jeff Sessions. Mr. Strange, who was backed by Senate Majority Leader Mitch McConnell (R., Ky.), lost the September race to Mr. Moore. Since the news reports of allegations against Mr. Moore broke last month, Mr. McConnell and other Republican leaders have called on him to withdraw from the race. On Sunday, Mr. McConnell softened his position. “We’re going to let the people of Alabama decide a week from Tuesday who they want to send to the Senate,” he said on ABC. “And then we’ll address the matter appropriately.” —Janet Hook contributed to this article. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Tuesday, December 5, 2017 | A5 C OL LE CT IO N ©Photograph: Laurent Ballesta/Gombessa Project no n- co Fo m rp m e er rs ci on al a us l, e on ly . Fifty Fathoms EXPERIENCE THE WORLD OF BLANCPAIN AT THE NEW BOUTIQUE LOCATION NEW YORK · 697 FIFTH AVENUE BETWEEN 54 TH & 55 TH STREET · 212 396 1735 RAISE AWARENESS, TRANSMIT OUR PASSION, HELP PROTECT THE OCEAN www.blancpain-ocean-commitment.com For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. A6 | Tuesday, December 5, 2017 THE WALL STREET JOURNAL. * **** U.S. NEWS President Donald Trump at the Utah Capitol on Monday after signing orders that reduce the size of two national monuments in the state. the support of the entire Utah congressional delegation, as well as the governor and commissioner representing Navajo districts. He said he personally briefed the president and Chief of Staff John Kelly on the plan, with a focus on restoring the land for public use, which includes “healthy hunting and fishing.” Mr. Zinke said energy wasn’t the reason and that there is no oil or gas in Bears Ears, though there is coal in Grand StaircaseEscalante. Instead, he said, the goal was to increase public access to the area for roads, grazing and active management for conservation. Detractors said the two million acres being removed from monument status contain rich oil, coal and uranium deposits that could be exploited by Mr. Trump’s backers in the resource industry, threatening one of the nation’s largest repositories of Native American artifacts. Mr. Zinke said of 150 monuments examined, 27 underwent a more detailed review and a handful were changed, the biggest two of which were in Utah. Mr. Trump signed proclamations cutting the monuments after excoriating previous presidents for what he called “overreach” in creating them. “Past administrations have severely abused the purpose, spirit and intent of a century-old law known as the Antiquities Act,” Mr. Trump said. “I’ve come to Utah to take a very historic action, to reverse federal overreach and restore the rights of this land to your citizens.” The 1906 law allowing the creation of monuments can limit commercial and other activities on the land, such as mining and logging. But monuments also encourage tourism. Mr. Trump is expected to act later this week on the rest of Mr. Zinke’s recommendations, which include downsizing or making protections less restrictive on five other land monuments and three in the Atlantic and Pacific oceans. —Louise Radnofsky contributed to this article. ly . President Donald Trump signed orders that significantly reduce the size of Utah’s Bears Ears and Grand Staircase-Escalante national monuments, marking the largest-ever withdrawal of federally protected lands in the U.S., experts say— an act already facing legal challenge. Bears Ears, established last year by former President Barack Obama, will be reduced to about one-seventh of its original size—to roughly 200,000 acres from 1.35 million—and split into two separate sections. Grand Staircase-Escalante, created by former President Bill Clinton in 1996, will be cut nearly in half, to just over a million acres from nearly two million acres—and separated into three sections. Mr. Trump signed the orders Monday in the rotunda of the Utah capital on a brief visit to Salt Lake City, surrounded by state and federal lawmakers, as well as county officials from rural parts of Utah. Late Monday, a coalition of 10 environmental groups filed a lawsuit in U.S. District Court in Washington seeking to invali- date the president’s action. “This is really a disgraceful attack on America’s natural and cultural heritage,” said Heidi McIntosh, a managing attorney for Earthjustice, a legal nonprofit representing environmental groups. Monuments are federally protected reserves that may include culturally or historically important features. Monuments function much like national parks but can be created by the president. National parks are created by an act of Congress. In Utah, hundreds of monument supporters—including Native American tribes and environmentalists—staged noisy demonstrations Monday, after holding a bigger protest Saturday. Leaders of the groups pledged to file lawsuits to try to block the move. The president acted on the recommendation of Interior Secretary Ryan Zinke, who conducted a review of dozens of recently established monuments. Mr. Zinke told reporters ahead of Mr. Trump’s speech that the president was right to take action “when a monument is used to prevent rather than protect” and that the move had co Fo m rp m e er rs ci on al a us l, e on BY JIM CARLTON FRANCISCO KJOLSETH/ASSOCIATED PRESS Monuments Cut as Trump Signs Orders Independent Who Ran for President High Court Questions tutional amendment that stated the U.S. “devoutly recognizes the authority and law of Jesus Christ, Savior and Ruler of Nations.” He later disavowed that proposal. Mr. Anderson cast votes against President Lyndon Johnson’s Great Society programs. But he became moved by the civil-rights movement and the segregationist backlash to it. He was key to the passage of the Fair Housing Act, part of the Civil Rights Act of 1968, breaking with the GOP and casting the deciding committee vote to send the bill to the House floor. “I legislate today not out of fear, but out of a deep concern for the America I love,” he said in an impassioned speech to his colleagues. “We do sued rulings against all three bans. “We are not surprised by today’s Supreme Court decision permitting immediate enforcement of the president’s proclamation,” said White House spokesman Hogan Gidley. “The proclamation is lawful and essential to protecting our homeland. We look forward to presenting a fuller defense” as the cases move through the courts. It wasn’t clear precisely when the rules will change. A meeting is scheduled for Tuesday including officials from the White House, and the departments of Homeland Security, State and Justice to plan for implementation, one official said. Challengers expressed disappointment in the development, but said it was an interim one that didn’t decide the important issues raised by the cases. “President Trump’s antiMuslim prejudice is no secret,” said American Civil Liberties Union lawyer Omar Jadwat. “It’s unfortunate that the full ban can move forward for now, but this order does not address the merits of our claims.” In the latest round of cases, trial judges in Hawaii and Maryland issued initial deci- sions against Mr. Trump in October before the new ban’s start date. They ruled that the new restrictions, like the administration’s previous attempts, were likely unlawful. The Hawaii judge ruled the new ban made improper judgments about the risks of certain travelers based on their nationality, while the Maryland judge said Mr. Trump’s new ban was tainted by the same kind of religious animus that undermined the legality of his previous travel restrictions. The Trump administration quickly appealed, and two federal appeals courts are hearing oral arguments this week. In the interim, courts had adopted a compromise approach that was endorsed by the Supreme Court last summer during litigation over the now-expired second travel ban. Under that middle ground, Mr. Trump was allowed to impose the ban on people with no connections to the U.S., but not against travelers from the banned countries who have close ties to families or organizations in the U.S. The Supreme Court’s order on Monday entitles Mr. Trump to apply the ban to both camps of travelers. The one-page order didn’t explain the court’s reasoning. There were only n- run came in June 1980, when multiple polls put his support at around one-quarter of the electorate. Third-party candidates tend to fade as voters begin to coalesce around contenders, and Mr. Anderson was no exception. In the final tally, he received 6.6% of the vote, badly trailing Messrs. Carter and Reagan. Mr. Reagan won in a landslide, kicking off 12 years of Republican control of the executive branch. Mr. Anderson, liberal on social issues but an economic conservative, didn’t always carry the pragmatic mantle. Soon after he was elected to the House on his record as a former prosecutor and World War II veteran, Mr. Anderson offered an unsuccessful consti- TRAVEL Continued from Page One security concerns, issued his latest travel restrictions on Sept. 24, applying them to eight countries: the Muslimmajority nations of Chad, Iran, Libya, Somalia, Syria and Yemen, as well as North Korea and some government officials in Venezuela. It is Mr. Trump’s third attempt at a travel ban. Civil-rights and immigration advocates, as well as the state of Hawaii, again filed lawsuits to challenge the latest restrictions, arguing Mr. Trump was attempting another improper ban against Muslims entering the U.S., a claim the president denies. Lower courts have is- Crafted in gold & platinum Order by 12 /20 for the Holidays Your Anniversary Immortalized In Roman Numerals JOHN-CHRISTIAN.COM 888.646.6466 stand at a crossroad. We can continue the gadarene slide into an endless cycle of riot and disorder, or we can begin the slow and painful ascent toward that yet-distant goal of equality of opportunity for all Americans, regardless of race or color.” He developed a liberal streak in the late 1960s and ’70s, as Mr. Anderson helped pass campaign contribution limits, supported legislation to create national parks in Alaska, pressed for ratification of the ERA, and supported abortion rights. The ERA passed both houses of Congress but wasn’t ratified by enough states. By the time Mr. Anderson ran for president, entering the Republican primary contest in 1979, he had shifted on his party or, in Mr. Anderson’s view, it moved on him. Two years before he began his run, Mr. Anderson said “extremist fringe elements” of the Republican Party were seeking to mount an “ideological coup d’etat.” That route, he said, would throw the GOP into the “historical junk heap.” In the GOP state primary contests, he made several strong challenges to George H.W. Bush and Mr. Reagan, the Republican front-runners. Seeing no path to victory, he withdrew from the party contest to run in the general election as an independent. Ban on Sports Betting BY BRENT KENDALL WASHINGTON—Supreme Court justices voiced skepticism of a 25-year-old federal law that has prevented formal betting on sports in most states, a sign that the landscape for wagers on professional and college games could dramatically open up. The high court heard oral arguments Monday in New Jersey’s challenge to the 1992 Professional and Amateur Sports Protection Act, which says that states can’t “sponsor, operate, advertise, promote, license, or authorize” sports gambling. Legal wagering on individual sports contests currently takes place only in Nevada, which was grandfathered into the federal law. New Jersey, which is trying to clear the way for sports wagers within its borders, argues the federal law violates principles of states’ rights. A group of 18 state attorneys general and three governors filed a brief supporting New Jersey. Justices across the ideological spectrum appeared receptive to the state’s claim. Justice Anthony Kennedy, a conservative who often is a key vote in close cases, said the federal government was trying to force New Jersey to keep in place a state wagering ban that it doesn’t want. WIN MCNAMEE/GETTY IMAGES Rep. John Anderson of Illinois and his wife, Keke, on April 24, 1980, when he announced he would seek the presidency as an independent. no John B. Anderson, the former 10-term congressman who mounted an independent challenge for the presidency in 1980, died Sunday night in Washington, his family announced in a statement Monday. He was 95 years old. A once deeply conservative House member from Illinois, Mr. Anderson ran for president as a centrist assured of his principles in JOHN his challenge to ANDERSON former Califor1922-2017 nia Gov. Ronald Reagan, the Republican nominee, and the incumbent Democratic President Jimmy Carter. Mr. Anderson, born in Rockford, Ill., cast his effort as a “campaign of ideas,” an alternative to what he called the “mean and evasive” Mr. Carter and the “simplistic” Mr. Reagan. Among his stances: a higher gasoline tax to cut reliance on energy imports, taking steps to cut the federal deficit and backing the Equal Rights Amendment, which aimed to prevent discrimination against women. Mr. Anderson captured support from many young Republicans and Democrats disillusioned with his opponents in the face of the long-running Iranian hostage crisis and an economic slump. His high point in the general-election BOB DAUGHERTY/ASSOCIATED PRESS BY CHRIS GORDON The Supreme Court order came after an emergency appeal. two recorded dissenters: Justices Ruth Bader Ginsburg and Sonia Sotomayor, both members of the court’s liberal wing. The court’s action signals the justices may be more likely to uphold the latest travel ban than lower-court judges who have faulted the president’s efforts. One factor the justices consider when evaluating emergency appeals is whether the party seeking intervention has some likelihood of succeeding in any eventual Supreme Court case. Whichever side loses the two appealscourt cases will very likely seek Supreme Court intervention. That could happen in a matter of weeks or months. The Justice Department’s emergency appeal to the Supreme Court last month had argued that preventing Mr. Trump from effectuating his latest ban “will cause ongoing irreparable harm to the government and the public” by requiring the president to disregard inadequacies in traveler vetting procedures in the countries subject to the ban. Some of the countries were facing a near-total ban, while others were facing more tailored restrictions that allowed some travelers, such as students, to come to the U.S. on nonimmigrant visas. “That seems commandeering” of state governments by Washington, he said. Other conservative justices suggested the federal government had erred by trying to use state governments to carry out federal policy. Justice Stephen Breyer, a member of the court’s liberal wing, said the federal law appeared to differ from other instances in which Congress had legitimately regulated interstate commerce. The difference, he said, was that Congress hadn’t actually set out a federal policy against the authorization of sports bets. Other liberal justices like Ruth Bader Ginsburg and Sonia Sotomayor appeared more sympathetic to the federal government’s position. The National Collegiate Athletic Association, along with Major League Baseball, the National Hockey League, the National Football League and the National Basketball Association, sued to stop New Jersey from going forward with state-sanctioned sports betting. The leagues traditionally have opposed sports betting because they believed it could threaten the integrity of their games. The Justice Department also argued Monday in defense of the federal law. A decision is expected by the end of June. The continuing litigation hadn’t affected the president’s plan to prohibit travel by North Koreans and certain government officials in Venezuela. Legal challengers didn’t contest the ban’s application to those two non-Muslim countries. The third version of the ban, unlike the previous two, came after a government study of vetting procedures used around the world for travelers seeking visas for U.S. travel. The Trump administration has argued the study provides important support for the new policy and will encourage better cooperation from foreign governments. While the Justice Department defends the president’s approach in court, Mr. Trump’s opponents cite his social-media activity as evidence of religious animus. The president last week retweeted anti-Muslim videos posted by a British farright nationalist, a move that drew rebukes from U.S. allies and civil-rights advocates. Challengers of the travel rules said the retweets were further evidence of religious animus by Mr. Trump, and they referenced the retweets in a letter to the Supreme Court on Monday. —Laura Meckler and Louise Radnofsky contributed to this article. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Tuesday, December 5, 2017 | A7 WORLD NEWS U.S. Presses China, Lightly, on Pyongyang Trump administration targets small bank for ties to regime, but is wary of tougher steps North Koreans gather to celebrate the country’s progress in its nuclear program, a development the U.S. hopes to curb with the help of China, Pyongyang’s main benefactor. sanctions against Pyongyang and ordered its banks to comply with U.N. resolutions. The U.N. on Monday said Jeffrey Feltman, its undersecretary general for political affairs, would travel to North Korea on Tuesday for three days of political talks at Pyongyang’s invitation. Mr. Feltman is scheduled to meet North Korea’s foreign minister and vice president but not Mr. Kim. Mr. Feltman also will meet diplomats and U.N. staff stationed in Pyongyang, officials said. The U.S. mission to the U.N. said it was aware of Mr. Feltman’s trip as part of the U.N.’s interactions with North Korea and that the U.S. would continue to work with Security Council members to increase “diplomatic and economic pressure” on the regime until it abandoned its nuclear and ballistic-missile programs. Military Exercises Between Allies Start on Peninsula SEOUL—The U.S. and South Korean militaries began five days of simulated war exercises on the peninsula, involving bombers, fighters and thousands of troops, less than a week after North Korea tested its most advanced missile. The annual exercises, known as Vigilant Ace, are aimed at developing interoperability between the two countries’ air forces, a spokesman for South Korea’s Defense Ministry told reporters on Monday. About 12,000 U.S. military personnel stationed in South Korea, Japan and other regions, along with an undisclosed number of South Korean troops, are co Fo m rp m e er rs ci on al a us l, e on smallest banks. But longtime North Korea experts and former top U.S. sanctions officials said Washington would need to hit more banks to make the threat real to the rest of China’s financial system. Short of that, hefty fines also could encourage them to conduct better due diligence to avoid being used by front companies and North Korea’s agents, some lawmakers and analysts said. The administration says it will levy new sanctions against the country in coming days, in part a reaction to Pyongyang’s latest missile test. The administration maintains that navigating a diplomatic path between the threat of stronger unilateral action and giving China room to act on its own has yielded a measure of success. China has backed the strongest set of United Nations taking part in the maneuvers, which will feature latest-generation stealth U.S. fighters. The U.S. military said the drills are “comparable in size to previous Vigilant Ace exercises” and aren’t in response to “any incident or provocation.” The exercises come as tensions build over North Korea’s missile program. Some security analysts fear Pyongyang is close to mastering the technology needed to hit U.S. cities with nuclear-tipped missiles. As the allies kicked off the joint exercises, North Korea’s state-run newspaper Rodong Sinmun condemned the maneuvers as a “prelude to nuclear war,” the North’s Korean Central News Agency reported. China on Monday urged all sides to avoid exacerbating the “highly sensitive” situation. —Andrew Jeong ly . on those who help finance the regime,” said a joint statement by U.S. Sens. Chris Van Hollen, (D., Md.), and Pat Toomey, (R., Pa.), advocates of a Senate bill that would require harsh penalties against banks aiding North Korea. Officials in Beijing have said they are categorically opposed to unilateral U.S. sanctions, calling such actions extraterritorial interventions. Administration officials this year signaled they would take a much more stringent position with China after North Korea stepped up weapons testing, promising to freeze Chinese banks out of the U.S. financial system if they continued to allow their accounts to be used to launder money for the Kim Jong Un regime. In June, the administration said it would block access to American markets by the Bank of Dandong, one of China’s n- FRANCIS R. MALASIG/EUROPEAN PRESSPHOTO AGENCY WASHINGTON—The Trump administration is locked in a diplomatic quandary as it tries to pressure North Korea: how to sanction Pyongyang’s top ally and patron—China—without alienating an economic powerhouse that is arguably the best hope to slow its rogue nuclear-weapons program. That predicament helps explain why the U.S has targeted only one small Chinese bank with sanctions, even though American officials and analysts say they believe financial institutions in China represent key nodes in Pyongyang’s illicit finance network. With North Korea now boasting that it has the entire U.S. in range of its missiles, the Trump administration has navigated a diplomatic path between the threat of stronger unilateral action and giving China room to act on its own, which officials say has yielded a measure of success even as the threat has grown. China has long been North Korea’s primary benefactor. U.S. officials say that relationship extends into North Korea’s financing operations, even if not always officially licensed by Beijing. After decades under international sanctions, Pyongyang has developed highly sophisticated, illicit financing networks that rely heavily on Chinese agents, front companies and banks, those officials say. As North Korea accelerates its weapons program, U.S. lawmakers are urging the White House to hit China’s banks with fresh sanctions to spur more-aggressive action against its nuclear-armed ally. “We must finally put real teeth in economic sanctions and impose severe penalties KCNA/REUTERS BY IAN TALLEY An exterminator spraying to eradicate mosquitoes during an anti-dengue campaign in Manila in June. no Dengue Fever Vaccine Is Suspended in Philippines The Philippines suspended a dengue fever vaccine that was given to thousands of children and launched an investigation, after the drug’s manufacturer said new evidence showed it could worsen symptoms in some cases. The tropical country last year became the first nation to widely distribute the vaccine, branded Dengvaxia, after a fasttrack approval process. The government says more than 730,000 people, mostly children older than 9, were given the vaccine, manufactured by the vaccinations division of French pharma giant Sanofi SA. A person can be infected by dengue as many as four times due to the existence of different strains. Subsequent infections are often more severe. Sanofi said last week new data found the vaccine was effective for people who had already had dengue, but for those who hadn’t, “more cases of severe disease could occur following vaccination.” The company said it had asked regulators to change the vaccine label to recommend that people don’t take the vaccine if they haven’t been infected previously. It isn’t the first time warnings have surfaced about the vaccine. In a July 2016 report, the World Health Organization ROMEO RANOCO/REUTERS BY JAKE MAXWELL WATTS An immunization-program worker holds up Dengvaxia in Manila. noted that the vaccination “may be ineffective or may theoretically increase the future risk of hospitalized or severe dengue illness” in those who have not had dengue at the time of vaccination. WHO reiterated its Nov. 30 recommendation that “as a precautionary and interim measure,” Dengvaxia be given only to people known to have already been infected with dengue. The government last week suspended its vaccination program. Though no deaths or cases of severe dengue have been definitively linked to the vaccine, some politicians have pointed to cases of children who have died since receiving it. Philippine Health Secretary Francisco Duque III told local media Monday the government would assess responsibility for the vaccine, which was approved under the previous administration, and consider charges against its manufacturer. Sanofi said it doesn’t comment on legal topics, but noted that “the vast majority of those vaccinated to date live in high endemic settings and, therefore, will have had a prior dengue infection before vaccination.” It said the company had “not seen any evidence of increased incidence of severe dengue in vaccinated individuals in the real world experience with the vaccine.” In a statement last week, Sanofi Pasteur, the firm’s vaccinations division, said the new analysis of clinical data highlights the complex nature of dengue infection. “We are working with health authorities to ensure that prescribers, vaccinators and patients are fully informed of the new findings, with the goal of enhancing the impact of Dengvaxia in dengue-endemic countries,” said Su-Peing Ng, global medical head of Sanofi Pasteur. Dengvaxia was recommended for use by the WHO in April 2016. It was the first of its kind, targeting a mosquitoborne disease that infects about 390 million people a year globally. 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For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. A8 | Tuesday, December 5, 2017 THE WALL STREET JOURNAL. NY WORLD NEWS U.K. Exit Talks With EU Stalled Two sides are divided over the issue of Irish border commitments but remain hopeful JOHN THYS/AGENCE FRANCE-PRESSE/GETTY IMAGES British Prime Minister Theresa May and European Commission President Jean-Claude Juncker failed to reach a deal to advance Brexit negotiations after hours of talks Monday afternoon, with progress stalling on differences over the Irish border, officials said. By Laurence Norman in Brussels and Paul Hannon in London Mr. Juncker expressed confidence that a deal could come in time to allow European Union leaders later this month to permit Brexit negotiations to start focusing on the future trade relationship between Britain and the bloc. Mrs. May said talks would resume this week. “Despite our best efforts and the significant progress we and our teams have made…it was not possible to reach a complete agreement today,” Mr. Juncker said in a joint press appearance with Mrs. May. “We now have a common understanding on most rele- U.K. premier Theresa May and European Commission chief Jean-Claude Juncker before meeting in Brussels. vant issues with just two or three open for discussion.” “We will reconvene before the end of the week and I am also confident that we will conclude this positively,” Mrs. May said. The talks have been dominated in recent days by negotiations among Dublin, Brussels and London on what commitments the U.K. must give to prevent a hard border on the island of Ireland after Brexit. Irish Foreign Minister Simon Coveney told Irish media Monday afternoon that Britain was close to agreeing on a joint text with the EU that would commit Britain to ensuring broad regulatory alignment between the Republic of Ireland and Northern Ireland. That could erase the need for customs checks and the restoration of a hard border after Brexit, slated for March 2019. The issue is of crucial importance to the Republic of Ireland, where officials fear that Britain’s decision to leave the EU will cleave Irish business links and social ties that have deepened since the end of violence in Northern Ireland almost two decades ago. If fu- ture rules on issues such as agriculture and animal health are different in Northern Ireland than in the Republic of Ireland, they say border and customs checks would be inevitable. But while Mr. Coveney was signaling an imminent breakthrough, Arlene Foster, leader of Northern Ireland’s Democratic Unionist Party, warned Mrs. May to tread carefully. The DUP is committed to Northern Ireland remaining unequivocally in the U.K., and Mrs. May’s Conservative Party depends on the party’s votes for its parliamentary majority. In the evening, Irish Prime Minister Leo Varadkar said he believed Mrs. May’s government had pulled back from a deal. He said the Irish government had received confirmation from the British government of a text on the border issue that “met our concerns.” He said that he believed Mrs. May was negotiating in good faith and that the issue could be settled in coming days. British officials denied they had settled on any particular version of the joint text with Ireland and said different wording was still under discussion when the Brussels meeting began. —Jenny Gross contributed to this article. ahead of the regional parliamentary elections that are scheduled for Dec. 21. The officials were jailed on Nov. 2 pending an investigation by state prosecutors on charges of sedition, rebellion and misappropriation of public funds for their sustained bid to split with Spain. Mr. Puigdemont and four other former cabinet members fled to Belgium after Catalan lawmakers voted to declare the wealthy region—which generates around one-fifth of Spain’s annual economic output—independent. A Belgian court said Monday that it will announce on Dec. 14 its decision on whether Mr. Puigdemont and the other former separatist leaders should be extradited to Spain, a decision that could be appealed. Mr. Puigdemont has said the jailing of his former colleagues is politically motivated and said he wouldn’t receive a fair trial if he were to return to Spain. Spanish Prime Minister Mariano Rajoy dismissed Mr. Puigdemont and his entire cabinet hours after the independence declaration on Oct. 27 and seized temporary control of the region. co Fo m rp m e er rs ci on al a us l, e on PIERRE-PHILIPPE MARCOU/AGENCE FRANCE-PRESSE/GETTY IMAGES BY JEANNETTE NEUMANN no n- Former regional officials leave Estremera’s prison, near Madrid. MADRID—A Spanish judge ordered the release on bail of six former government officials in Catalonia, but ruled Monday that the former Catalan vice president and three other separatist leaders must remain in jail while prosecutors investigate them for their independence drive. If the six ex-officials, who had been cabinet members under former Catalan President Carles Puigdemont, post the €100,000 ($118,950) bail ordered by the judge, they will be able to campaign in events 22.02 carat emerald cut diamond 3 stone ring Emerald cut rings available 1½ carats and up 125 Greenwich Avenue, Greenwich (203) 622-6205 www.shrevecrumpandlow.com European finance ministers shifted power from the north of the continent to the south, providing a boost to opponents of austerity policies. By Todd Buell in Brussels and Jeannette Neumann in Madrid On Monday, the ministers chose Portugal’s Finance Minister Mário Centeno to lead the group of finance ministers, known as the Eurogroup, which steers policy in the eurozone. Mr. Centeno’s peers elected him to succeed former Dutch Finance Minister Jeroen Dijsselbloem as president of the group, which plays an essential role in important eurozone policy discussions, such as those pertaining to Greece’s bailout. Mr. Centeno has been Portugal’s finance minister since November 2015. The European Council’s press office said in a Twitter post that he will take office on Jan. 13. Opponents of austerity policy welcomed the selection of Mr. Centeno, whose country has in recent years rejected the spending cuts often pushed by European authorities and Northern European countries. Sven Giegold of the Green group in the European Parliament, said that Mr. Centeno was the “anti-Schäuble among Europe’s finance ministers,” a dig at former German Finance Minister Wolfgang Schäuble, a staunch advocate of balanced budgets. “Portugal has successfully refuted the austerity dogma. Centeno has shown that, after necessary structural reforms, investing is the right way forward,” Mr. Giegold said. Mr. Centeno completed a Ph.D. in economics in 2000 from Harvard University, where he also earned a master of science in economics. ly . Six of 10 Catalan Separatists Released on Bail New Chief Will Steer European Finance For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Tuesday, December 5, 2017 | A9 no n- co Fo m rp m e er rs ci on al a us l, e on ly . GOOD DELIGHTS Two bold ristretto shots of espresso topped with sweet, velvety steamed whole milk. Merry sipping to you this holiday at Starbucks. At participating stores. While supplies last. © 2017 Starbucks Coffee Company. All rights reserved. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. A10 | Tuesday, December 5, 2017 * *** THE WALL STREET JOURNAL. WORLD NEWS Houthi rebels stood outside the burning residence of former President Ali Abdullah Saleh in Yemen’s capital San’a on Monday. Former President Forged Alliances To Maintain Power in the early 2000s as Yemen became a haven for the terrorist group al Qaeda and the rebel movement by Houthi tribesmen gained traction in the north. Popular dissatisfaction with Mr. Saleh’s harsh rule peaked in 2011 during the Arab Spring uprisings. Following a bombing that left him wounded in an apparent assassination attempt, he agreed in late 2011 to relinquish power to his vice president. He formally stepped down in early 2012 and left the country for medical treatment. But Mr. Saleh was soon back in Yemen. Mr. Saleh was born in 1942 into a family of sheep herders following the Zaidi offshoot of Shiite Islam. He entered the armed forces in the early 1960s. —Asa Fitch longer than what at first seemed likely. Their alignment was formalized in 2016 through the formation of a power-sharing council that included Houthis and members of Mr. Saleh’s General People’s Congress party. Tensions worsened between Mr. Saleh, who had longstanding ties to Saudi Arabia, and the Houthis, a movement with its power base among Zaidi Muslim tribes in the north, and a history of Iranian support. When representatives of the International Crisis Group met with Mr. Saleh earlier this year, “he was getting fairly desperate,” said Joost Hiltermann, the group’s Middle East and North Africa program director. “He was clearly stuck: The Saudis didn’t want to deal with him because he had betrayed them, and basically the Houthis didn’t like him, be- cause he had fought them as president.” Though Mr. Saleh had been known for decades of cobbling together alliances to retain power, in declaring a break with the Houthis and reaching out to Saudi Arabia, Mr. Hiltermann said, “it looks like Ali Abdullah Saleh overplayed his hand,” he said Mr. Seche, the former U.S. envoy, noted Yemen has always been a fractious country. “Ali Abdullah Saleh’s genius was his ability to preside over so many centers of power. Saleh was able to weld that together in some manner.” A Houthi official said Mr. Saleh had been traveling in a convoy of three cars about 40 miles outside San’a on Monday when rebels manning a checkpoint clashed with the convoy. Mr. Saleh was shot to death with one of his top aides, the officials said. Opposition to Ali Abdullah Saleh’s harsh rule peaked during the Arab Spring uprisings. ly . less political institutions to thrive. He held periodic elections panned by opponents as fraudulent. Challenges to his rule mounted Former Yemeni President Ali Abdullah Saleh, killed in an attack by Houthi rebels Monday, was a military commander and political maverick who managed to survive by striking alliances of convenience even after he was ousted. Over past decades, Mr. Saleh, who was 75, proved a wily navigator of Yemen’s complex political landscape—something he once described as “dancing on the heads of snakes.” Yemen was divided into two countries, north and south, when he became president of North Yemen in 1978. A year later, he started a war with the south— taking the first step in a drawnout attempt to unite his country. Soviet support for the Marxist south had waned as the Cold War wound down, which eased the way for unification and raised Mr. Saleh’s prestige. Like other Arab “presidentsfor-life” who rose to power in the latter half of the 20th century, Mr. Saleh tightly controlled the new republic while keeping unrest in check by allowing tooth- co Fo m rp m e er rs ci on al a us l, e on Continued from Page One down,” Mr. Seche said. “In Washington they see this as another Iranian influence. Washington still views the Saudis as doing our work for us in Yemen, pushing back against Iran.” Pentagon spokesman Eric Pahon said the development wouldn’t change U.S. support for the Saudi-led coalition’s war against the Houthis. “It is in our national security interests to support our partners in the Gulf as they face continued threats from nonstate groups enabled by the Iranian regime, and to combat extremist organizations such as al Qaeda in the Arabian Peninsula and ISIS in Yemen,” Mr. Pahon said. Yemen’s President Abed Rabbo Mansour Hadi, the country’s internationally recognized leader, delivered a televised speech from Saudi Arabia in which he expressed condolences over Mr. Saleh’s death— and said he had instructed his military to open a new front to liberate San’a from the Houthi rebels. “I call on all the people of Yemen in all provinces still under the rule of these criminal militias to rise up and our heroic army will support you,” he said. Houthi leader Abdel-Malik al-Houthi also delivered a televised speech marking what he said was an exceptional and historic “death day.” Though Mr. Saleh agreed in 2011 to relinquish power to Mr. Hadi, his vice president at the time, he continued to wield influence and command a fighting force of his own. A man with a longtime reputation as a savvy politician, Mr. Saleh made the alliance with the Houthi rebels in 2015 despite having fought six wars against them when he was president. Though the alliance was rooted in expediency and lacked deep political or cultural bonds, the Houthis and forces loyal to Mr. Saleh fought together against the U.S.backed, Saudi-led coalition, for AGENCE FRANCE-PRESSE/GETTY IMAGE YEMEN A video circulated on social media showed rebels cheering as they carried what appeared to be the body of Mr. Saleh on a blanket and placed it on the back of a pickup truck. The source of the images was unclear. “This is a huge deal on two levels,” said Adam Baron, Yemen expert at the European Council on Foreign Relations. “First: Saleh, for better or for worse, was the architect of modern Yemen,” he said. “Second: within the context of the conflict, the Houthi-Saleh alliance didn’t just fall apart—it has dramatically exploded.” Amid the violence unfolding in the capital, U.N. humanitarian personnel on the ground were receiving desperate calls for help, said U.N. spokesman Stephane Dujarric. The latest development “obviously adds an extreme level of complexity to an already difficult political situation. We’ve seen an extreme rise of violence in San’a, this only adds another level of suffering to the people of Yemen,” he said. As of Monday, 125 people had been killed and 238 injured in the capital in fighting in the aftermath of the collapse of the Saleh-Houthi alliance, according to the International Committee of the Red Cross. “The streets of San’a have become battlegrounds and people are trapped in their homes, unable to move out in search of safety and medical care and to access basic supplies such as food, fuel and safe water,” said Jamie McGoldrick, the United Nations humanitarian coordinator for Yemen. The war in Yemen has brought a yearslong humanitarian crisis, in which more than 10,000 civilians have died since the conflict began in 2015, according to U.N. estimates. After prolonged conflict, many Yemen provinces are on the brink of famine, compounded by trouble delivering aid to affected areas. A cholera epidemic exacerbated by poor sanitation is nearing a million suspected cases, according to the World Health Organization. —Margherita Stancati, Ben Kesling and Farnaz Fassihi contributed to this article. no n- Time to change where you buy business travel. Exclusively for the “do-it-yourself” business traveler. Great prices. Concierge-level service at no charge. You travel on business . . . to get business done. But if you have no corporate travel department or support, you’re on your own. You do it all yourself, every time. You research lights, hotels and rental cars. Then you compare prices, book everything . . . and maybe re-book everything when your plans shift or bad weather hits. It’s time to change. Our new service does it all for you. We work directly for the do-it-yourself business traveler. No commitments or fees, just great prices with concierge-level service at no charge. You can save hours shopping for lights and rooms because we do it for you in seconds. 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POWERED BY Business Travel Service The Wall Street Journal Business Travel Service is operated independently of the Journal's news department. All international and domestic travel must start in the U.S. and all buyers must be U.S.-based. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Tuesday, December 5, 2017 | A11 * * WORLD NEWS French president joins regional officials urging U.S. not to declare the holy city Israel’s capital The Trump administration’s expected announcement on the future status of Jerusalem has the potential to derail tenuous U.S. attempts to revive moribund Middle East peace talks, reaction from capitals in the region suggests. By Dion Nissenbaum and Felicia Schwartz in Washington and Rory Jones in Tel Aviv Arab leaders across the Middle East are making lastditch appeals to the U.S. not to declare Jerusalem the capital of Israel, a move that could trigger widespread violence and immediately torpedo efforts led by White House special adviser Jared Kushner to launch a regional peace plan. The foreign ministers of Jordan and Egypt have called Secretary of State Rex Tillerson to warn about the dangers of such an announcement. Palestinian leaders met with U.S. officials on Monday in Wash- ington to warn them that any declaration on Jerusalem that tilts toward the Israelis would undermine President Donald Trump’s attempt to relaunch peace talks. Palestinian leaders say they will stop working with the U.S. if Mr. Trump makes any declaration about Jerusalem this week. “Such a step is in the opposite direction of his intention to achieve the ultimate deal,” Husam Zomlot, the Palestinian diplomatic envoy to Washington, said on Monday. In a phone call Monday with Mr. Trump, French President Emmanuel Macron voiced concern about Mr. Trump’s proposed move of the U.S. Embassy from Tel Aviv to Jerusalem. Mr. Macron said the question of Jerusalem “should be resolved in the framework of peace negotiations between the Israelis and the Palestinians,” his office said. A White House statement on the same call said the two leaders discussed the “path to peace” but made no mention of Mr. Macron’s concerns. Israeli leaders have largely kept silent as they wait to see what Mr. Trump decides to do. Ron Dermer, Israel’s ambassa- THOMAS COEX/AGENCE FRANCE-PRESSE/GETTY IMAGES Arab Leaders Caution Trump on Jerusalem People walking in the Mount of Olives area of the city of Jerusalem on Monday. dor to the U.S., said in an interview with Politico published Monday that declaring Jerusalem the capital of Israel would “lay a cornerstone for peace because what it says is that under any peace agreement in the future, Jerusalem will be the capital of Israel.” Trump administration officials were fine-tuning the details of the announcement on Monday, with Mr. Trump ex- pected to deliver a speech about it on Wednesday. State Department officials have already warned embassies around the world to brace for potential protests. Jerusalem was divided in 1948 when Israel was founded, with Israel controlling the western parts of the city and Jordan controlling the eastern parts, including the Old City and its sacred sites for Mus- lims, Jews and Christians. Israel seized control of East Jerusalem in the 1967 Six Day War and eventually annexed the occupied parts of the city—something most of the international community refuses to recognize. No country currently has its embassy to Israel in Jerusalem, but Mr. Trump has repeatedly vowed to move the U.S. Embassy to the holy city. For now, Mr. Trump is expected to defer that official move as he lays the groundwork for the policy shift. Mr. Trump got unusually involved in a National Security Council meeting last week about Jerusalem, where U.S. officials said he was frustrated and urged aides to find a way to make good on his campaign promise to move the embassy. West Jerusalem houses Israel’s parliament, Supreme Court and the prime minister’s office, but official U.S. policy is that Israelis and Palestinians have to agree on the city’s future status. The Palestinians want East Jerusalem to serve as capital of a future Palestinian state, but Israelis are opposed to any deal that would divide the city again. By making an announcement about Jerusalem without moving the U.S. Embassy right away, the Trump administration may be looking for a way for the president to demonstrate his commitment without sabotaging peace talks. The administration also could be gambling that any protests will be short-lived and that the Palestinians would find they have no choice but to eventually return to negotiations. ly . Israel Warned Syria About Iranian Military Presence JALAA MAREY/AGENCE FRANCE-PRESSE/GETTY IMAGES An armored personnel carrier blocked a road during an exercise in the Israeli-controlled Golan Heights near the border with Syria on Nov. 20. Canada and China Ease Pace Toward Trade Pact BY PAUL VIEIRA Canadian Prime Minister Justin Trudeau said he was ready to forge ahead with formal talks toward a free-trade deal with China, but at “a proper pace” and with assurances any pact addresses the environment, labor standards and gender rights. His comments to Canadian reporters traveling with him came after a meeting Monday in Beijing with Chinese Premier Li Keqiang, in which the two leaders said they would continue to explore the feasibility of a bilateral free-trade pact but offered no timeline. They didn’t announce a formal launch of free-trade talks, as analysts in Beijing and Canada had widely expected. Mr. Trudeau’s trip to China is being watched in light of the problematic state of talks to revamp the North American Free Trade Agreement. The White House wants to make the terms of trade in the 23year-old treaty more favorable to the U.S. through changes Mexico and Canada oppose. A rapid Canadian move to launch formal trade talks with China would signal to the U.S. that Ottawa has other trading options should Nafta collapse. Mr. Li said the China-Canada relationship presents “huge potential and broad prospects,” expressing hope the two countries would lift bilateral ties “to a new high.” Mr. Trudeau said Canada was committed to pressing ahead with trade talks “in a responsible way.” “There’s a desire to make sure that we get it right,” Mr. Trudeau said, adding that talks with China would need to address nontariff measures such as the environment, labor conditions and gender equality. The Liberal government under Mr. Trudeau has made this so-called progressive agenda a priority in trade talks, including in any revamp of Nafta. The push to include measures not related to lower tariffs and market access could be a sticking point to getting talks under way, analysts said. “The Chinese position is they don’t want to see social and political issues attached to treaties meant to facilitate the flow of goods,” said Charles Burton, a former Canadian diplomat in China and now a political-science professor at Brock University in St. Catharines, Ontario. —Sofia McFarland contributed to this article. any other threat to Syrian territorial integrity, we will be beside the Syrian nation,” Gen. Mohammad Bagheri, chief of staff of the Iranian armed forces, said during an October visit to Syria, according to Iranian state news agency IRNA. Israeli officials say Iran is trying to set up production facilities inside Syria and Leba- non to supply Hezbollah with precision missiles. Iran has denied it is seeking to establish bases in Syria. A spokesman for the Iranian foreign ministry declined to comment. Lebanon has denied the existence of Hezbollah weapons production facilities on its territory. According to Israeli officials, the current construction of weapons factories and the presence of Iran-backed Shiite militias near the border with the Israeli-controlled Golan Heights are key factors in their country’s shifting approach to Syria. “We have kept out of the Syrian civil war, but we are now saying that we won’t let this happen,” Michael Oren, deputy minister in Mr. Netanyahu’s office and former Israeli ambassador to Washington, said of the factories and Iran’s presence in Syria. Israel says the biggest threat to its military edge over Arab neighbors comes from precision missiles that could threaten Israeli cities and infrastructure. Israel and Hezbollah fought a 2006 war, and the Israelis want to prevent the Lebanese militia from amassing more-sophisticated weapons. Iran already holds considerable sway in Lebanon through Hezbollah and with the Palestinian militant group Hamas, which controls the Gaza Strip. Mr. Netanyahu has repeatedly voiced opposition to Iran’s presence in Syria to Russian President Vladimir Putin, according to Israeli officials. The two leaders spoke by phone in late November and have spoken in more than two dozen phone calls or meetings since Russia entered the Syrian conflict on the side of the regime in 2015. Russian officials didn’t respond to a request to comment. In the attack Saturday, Israeli missiles hit close to a Syrian base outside Damascus that has been converted for Iranian use, pro-Syrian regime media said. The strike scrambled Syrian air defense systems, according to Syrian state media, and loud explosions rocked the capital. —Raja Abdulrahim, Aresu Eqbali, Dion Nissenbaum and Felicia Schwartz contributed to this article. WORLD WATCH PAKISTAN Mattis Insistent on Pursuit of Militants Visiting U.S. Defense Secretary Jim Mattis pressed top Pakistani leaders to “redouble” efforts to pursue insurgents operating in havens, the Pentagon said, underscoring a long frustration with Islamabad over Taliban-linked militants who freely cross the border to conduct attacks against the U.S. and allies in Afghanistan. In brief comments before talks with Mr. Mattis, Pakistan Prime Minister Shahid Khaqan Abbasi said his country is committed to the war on terror and shares the same objectives as the U.S. Mr. Mattis didn’t speak while reporters were present. A Pentagon statement said that during the meetings, he discussed Pakistan’s role in the peace process and “reiterated that Pakistan must redouble its efforts to confront militants and terrorists” operating there. —Associated Press week’s interest-rate decision, the bank’s first since he took the helm on Friday and one that comes as inflation remains above expectations. The bank’s policy meeting is scheduled for Dec. 14. Mexico’s central bank has been on hold since June after a prolonged cycle of interest-rate increases that put borrowing costs at 7%, the highest since early 2009. Alejandro Díaz de León, in one of his first interviews as governor, said the central bank would be “extremely prudent.” He suggested that inflation data for November to be reported GREECE GDP Grows for Third Straight Quarter The country’s economy expanded for a third consecutive GERMANY Bavarian Leader To Cede Post in 2018 MEXICO Central Bank Leader Keeps Options Open The new governor of the Bank of Mexico ruled nothing out as he contemplated next quarter for the first time in more than a decade, but at a slower pace, according to figures published Monday. Gross domestic product increased by 0.3% in the July-toSeptember period from the previous quarter, compared with an upwardly revised 0.8% growth in the second quarter, data from Greece’s statistics service Elstat showed. The slower pace of expansion makes it more challenging to reach the downwardly revised annual growth target of 1.6% set by Greece and its European creditors. —Nektaria Stamouli this week and the Fed’s December rate decision would be key factors in the bank’s policy decision. The U.S. central bank has hinted at a rate increase in December. Many analysts expect the Bank of Mexico to keep rates unchanged next week, although several say an increase can’t be ruled out. —Juan Montes THIBAULT CAMUS/ASSOCIATED PRESS n- Syria, where Iran-backed forces played significant roles in defeating the Sunni extremists of Islamic State. Iran and the Shiite forces it backs—most notably the Lebanese militia Hezbollah—were crucial in helping the Assad regime prevail. “We are in Damascus to announce that in the time of threats by Zionists, terrorists or no Israeli Prime Minister Benjamin Netanyahu recently sent a message to Syria’s leader threatening to strike the country if it allows Iran to set up military bases there, a sign Israel is prepared to drop its neutral stance on the yearslong war next door, according to Israeli officials. It isn’t clear when the message was sent, but it came before what pro-regime media in Syria described as an Israeli missile strike Saturday on a military base controlled by Iran near the Syrian capital, Damascus. Israel didn’t confirm that it had launched the strike. Hours after the strike, Mr. Netanyahu said, “We will not allow a regime hellbent on the annihilation of the Jewish state…to entrench itself militarily in Syria.” Syrian officials didn’t respond to requests to comment. Whether Syrian President Bashar al-Assad responded to the Israeli message isn’t known. The new Israeli position raises the risk of clashes with an array of Iran-backed forces in Syria, Western diplomats said. Israel has largely stayed out of the nearly seven-year Syrian war, though it has launched some 100 airstrikes on what it has said were convoys ferrying Iranian weapons to Hezbollah through Syrian territory. Israeli officials say Iran is emerging from years of Middle East turmoil as one of the big victors, particularly in Iraq and co Fo m rp m e er rs ci on al a us l, e on BY RORY JONES HELLO: French first lady Brigitte Macron visits Yuan Meng, a 4month-old panda, at Beauval Zoo, Saint-Aignan-sur-Cher, France. Bavarian Premier Horst Seehofer will step down as leader of the southeastern German state and focus on his party’s input in negotiations to form Germany’s next government. Mr. Seehofer will hand over his position to Markus Söder in the first quarter of 2018 but remain chairman of the Christian Social Union, which is allied with Chancellor Angela Merkel’s center-right Christian Democrats at the national level, Thomas Kreuzer, the party’s Bavarian parliamentary group leader, said on Monday. —Andrea Thomas For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. A12 | Tuesday, December 5, 2017 IN DEPTH DOLLAR 0.5 0 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 Employees 150,000 employees* 100,000 50,000 0 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 Locations 15,000 stores 10,000 5,000 0 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 Continued from Page One the spelling.” Purists still resist, including Carole Seawert, a London copywriter who, as “Apostrophe Woman,” posts pictures on Twitter of apostrophe misuse on London storefronts and menus, posing on the site in a black cape decorated with apostrophes. “It's almost like the start of a slippery slope,” she says, “where people aren’t bothering to use apostrophes.” Resistance is increasingly futile, says Simon Griffin, a British copywriter who wrote a book about proper apostrophe use and says since its publication, “I’ve generally stopped correcting people when they make mistakes.” “I feel a small pang of pity for them, but I know there are many reasons,” he says, including “autocorrect, general rushing, fat fingers.” The apostrophe, with Greek roots, appeared in an English book in 1559 in usage such as “th’earth,” according to a 2009 paper from researchers at Panthéon-Sorbonne University in Paris. As late as 1755, an influential dictionary from Samuel Johnson indicated “halo’s” tucky and started the company there in 1955, making the store’s rural locations a natural fit. When Wal-Mart Stores Inc. grew past 3,000 stores in the early 2000s, a strategy surfaced: “We went where they ain’t,” said David Perdue, Dollar General’s chief executive from 2003 to 2007. That meant opening stores “where Wal-Mart’s 40 miles away and we can meet those JESSICA TEZAK FOR THE WALL STREET JOURNAL The entrance to the Dollar General store in Evensville, Tenn. Low prices dollars for the average grocery or big-box store, company executives said. When Dollar General began adding refrigerated sections to sell frozen and chilled foods, its real-estate team pinched pennies elsewhere. “My team is quite innovative,” Mr. Nieser said. Dollar-store chains flourished in the wake of the recession. Wal-Mart opened more than 100 mostly rural WalMart Express stores, a chain the company has since closed, selling dozens of the stores to Dollar General last year. Dollar General executives said in 2012 the chain would shift more attention to cities, attempting to assuage investors who worried the company’s growth could stall. “As we look further and further out where our growth opportunities are, we’re going to be in more urban environments versus rural,” then-CEO Rick Dreiling said at an investor meeting that year. Instead, demand by rural shoppers kept Dollar General’s focus on sparsely populated communities. In 2013, Dollar General refined its formula for new locations, incorporating such data as proximity to a post office or church. The company identified 14,000 spots, with “the highest improvement in opportunities in small town and rural markets,” Mr. Dreiling told analysts in 2014. After the company lost a 2015 battle to buy Family Dollar—the more urban chain— Dollar General decided to speed up its rural expansion. The company has since opened hundreds of diminutive stores, about the size of a basketball court, that can generate profits in communities with fewer than 1,000 homes, Mr. Vasos said. Dollar General still dreams of one day conquering metro- Many popular brands are packaged in small quantities to keep prices under $10—generally yielding higher profits per item than bulk goods at such warehouse chains as Costco, which sells half-gallon bottles of cooking oil and 7pound packages of fresh chicken. Lower-priced items are often a financial necessity for shoppers. At a Dollar General in Nashville, Tenn., store manager Damon Ridley said, he has helped older children put together a dinner menu for their younger siblings with the few dollars they have. “I am more of an outreach manager,” he said. The founders of Dollar General lived in small-town Ken- Low Prices, Big Returns and “memento’s” as acceptable plural forms, says David Crystal, honorary professor of linguistics at Bangor University in Wales. Today’s apostrophe rules started materializing in the mid-1800s in the publishing industry, Mr. Crystal says. They weren’t always intuitive, such as the rule placing possessive apostrophes in nouns but not pronouns. “You can say ‘the cat’s bowl,’ you can say ‘its bowl,’ but there’s no apostrophe in the second one. Logically, there should be.” The mark was deemed important enough to appear on the first commercially successful typewriter, the Sholes and Glidden, in the 1870s, says Peter Weil, an associate professor emeritus at the University of Delaware who has studied early typewriters. Symbols such as “#,” “$” and “!” were excluded. Early keyboards, he says, offered marks that were “the lowest common denominator of what almost anybody would want to use.” Then, modern tech habits happened. Skipping apostrophes in texting “stems back from the old 12-key days when it was very difficult to get your thoughts into a phone,” says David Kay, vice president of product develop- ment at Massachusetts-based Nuance Communications Inc., which creates autocorrect software. “People came up with a lot of shortening methods, a big one being skipping capitalization, skipping apostrophes.” “It’s an interesting sort of chicken-and-egg problem,” he says. Are people skipping those things “because it has become the style of texting?” or “because it’s difficult to do those things?” A 2013 study found many consider apostrophes optional in new electronic communication. National University of Ireland Maynooth researchers who looked at university students’ texts determined apostrophe errors were the most frequent midmessage punctuation mistake. Newer technology has more reliable autocorrect, says Fiona Lyddy, the study’s lead author, and the apostrophe tends to appear more frequently in text messages. “Whether the user understands why the apostrophe is appropriate,” she says, “is another question, however.” An apostrophe gaffe on Tinder stars on the front cover of a new book, “#single,” about the dating app. “Wow, your beautiful,” writes a suitor in an image of the text exchange. The book’s cre- Dollar General’s growth rate in net sales has been stable in recent years. Dollar General net sales Wal-Mart* total revenue ’09 ’13 15% 10 5 0 –5 2006 ’07 ’08 ’10 ’11 ’12 ’14 ’15 ’16 *Walmart counts membership income from Sam’s Club as separate from net sales; the two incomes combined is Wal-Mart’s total revenue. Source: the companies THE WALL STREET JOURNAL. ator, Alison Green, responds, “No. You’re beautiful.” The suitor asks, “don’t you mean handsome?” before Ms. Green replies that she was correcting his grammar. After nearly a year of apostrophe errors from potential lovers on Tinder, she met her current boyfriend, who “I can guarantee would have been on point with grammar,” says politan areas. This year, the company bought 322 stores from a private-equity firm that had bought them from Dollar Tree as it sought antitrust approval for the Family Dollar purchase. The acquisition included stores in Brooklyn, N.Y., Chicago and other cities, locations that will be a useful testing ground, he said. The percentage of Dollar General stores in and around cities has fallen slightly over the last two years to under 30%, a spokeswoman said. Dollar General opened its first store in Rhea County near Tennessee’s eastern border in 1965. It was the company’s 48th store. It opened a second one in the county in 1980 and another in 1998. The county is famous for being the setting for the 1925 Scopes Monkey Trial, where a teacher was prosecuted for teaching evolution. Last year, a subsidiary of Fujifilm Holdings Corp., which made photo-developing chemicals, and an air-conditioner maker owned by Daikin Industries Ltd. closed plants, shedding about 700 jobs. The plant closures pushed the county’s unemployment rate to 10.2% in January. By October, it had fallen to 5.4%, still the highest in the state. Finnish tire company Nokian Tyres broke ground on a local factory this fall. A hotel has opened, as have some new restaurants, “but the only retailer expanding is Dollar General,” said Dennis Tumlin, executive director of the Rhea County economic and community development group. After opening the Evensville store last year, Dollar General added another in nearby Graysville. Across the street, the ramshackle Graysville Market & Deli advertises the “Cheapest Beer and Cigarettes in Town!” Both Dollar General locations, as well as a third scheduled to open next year, are located on roads leading to the county seat of Dayton, population 7,250, which has a WalMart, grocery stores and a Dollar Tree. ly . people’s needs,” said Mr. Perdue, now Georgia’s junior U.S. senator. Dollar General doesn’t own most of its stores. It mostly leases steel-sided stores built to its own bare-bones specifications, said Dan Nieser, senior vice president of real estate and store development. The average Dollar General store costs $250,000 to open, compared with several million co Fo m rp m e er rs ci on al a us l, e on camouflage-gear brand Mossy Oak. “Even off-brand camo does well here,” said the Evensville store manager Justin Ray, who has a display of camouflage merchandise, including pacifiers and pet toys. Coca-Cola Co. created a line of soda cans for the chain this spring that carry such labels as “Service Member” and “Military Spouse” because many Dollar General shoppers have a personal link to the armed forces. Stores started selling cigarettes in 2012, a few years before CVS Health Corp. and Costco Wholesale Corp. moved to phase out tobacco sales. For decades, Dollar General prices have been marked in 5cent increments, making it easier for shoppers to estimate the total price of their purchases. “They don’t want to be embarrassed when they get up to the register,” said Mr. Vasos, who started working in retail as an assistant manager at Eckerd Drug and rose to executive before joining Dollar General in 2008. THE WALL STREET JOURNAL. Ms. Green, a 31-year-old Sydney publishing executive. “Apostrophes leading to love, who would have known?” The apostrophe trips up some databases that don’t recognize it, as David D’Arezzo found. The retired retail executive says in August a pharmacy drive-through-window employee couldn’t find his prescription. The database LUCY WILLIAMS PHOTOGRAPHY MARK *Full and part-time employees Source: the company Dalton Cranfield, 3 years old, and his father, David, at the Dollar General store in Evensville, Tenn. no holds earning $40,000 or less. Its primary competitor, Dollar Tree Inc., has more suburban locations and sells all items for $1, including unbranded knickknacks that attract shoppers browsing for fun. In 2015, Dollar Tree bought another competing low-price chain, Family Dollar Stores Inc. which has more urban locations. This lower-end market is better protected from Amazon and competitors that target wealthier shoppers, company executives and analysts said. Dollar General’s typical shopper “doesn’t look at her pantry or her refrigerator and say, ‘You know, I’m going to be out of ketchup in the next few days. I’m going to order a few bottles,’” said Mr. Vasos, the company’s chief executive. “The core customer uses the last bit of ketchup at the table the night prior, and either on her way to work or on her way home picks up one bottle.” Camouflage is a proven winner. This year, Dollar General became the exclusive seller of dog food from the 1.0 n- Dollar General has thrived building convenient locations for frugal shoppers. Proﬁts $1.5 billion JESSICA TEZAK FOR THE WALL STREET JOURNAL Continued from Page One nient locations for frugal shoppers, it has become one of the most profitable retailers in the U.S. and a lifeline for lower-income customers bypassed by other major chains. Dollar General Corp.’s 14,000 stores yielded more than double the profit of Macy’s Inc. on less revenue during its most recent fiscal year. And its $22 billion market value eclipses the largest U.S. grocery chain, Kroger Co., which has five times the revenue. The retailer relies on rapid store openings to keep revenue climbing and investors happy; 2016 marked its 27th consecutive year of sales growth in stores open at least a year. While many large retailers are closing locations, Dollar General executives said they planned to build thousands more stores, mostly in small communities that have otherwise shown few signs of the U.S. economic recovery. The more the rural U.S. struggles, company officials said, the more places Dollar General has found to prosper. “The economy is continuing to create more of our core customer,” Chief Executive Todd Vasos said in an interview at the company’s Goodlettsville, Tenn., headquarters. “We are putting stores today [in areas] that perhaps five years ago were just on the cusp of probably not being our demographic,” he said, “and it has now turned to being our demographic.” Dollar General’s target shoppers come from house- Dollar General at a Glance Carole Seawert, who as ‘Apostrophe Woman’ campaigns on Twitter against apostrophe misuse, warns of ‘a slippery slope.’ Close to home Mr. Ray, the Evensville store manager, said most shoppers stop by a few times a week for a handful of items they need that day. Best sellers include canned Vienna sausages and frozen pizza. Mr. Ray, who grew up about 10 miles away, said Gain detergent sells better than Tide because shoppers gravitate to more heavily scented cleaning products. Sales at the store are up 17% so far this year compared with last year, a spokeswoman said. On a recent weekday, Jackie Buchanan pulled up to the store astride a forest-green Craftsman riding mower, to buy shampoo and lawnmowercarburetor cleaner. “I’m just one mile down the road,” said Mr. Buchanan, 51, who is unemployed. Robin Swift, 48, arrived to buy after-school snacks rather than drive 10 miles to the WalMart. “It’s a small town,” she said, “and we don’t have another choice.” didn’t use apostrophes, she told him. Mr. D’Arezzo, 58, says companies often can’t find his name for the same reason. A cousin stopped using the apostrophe in his name, he says. “It’s kind of like a heresy in the family. He’s actually changed his name in order to accommodate technology.” Then there’s the troubling matter of the smart apostrophes. Typographers often prefer what some of them call a “smart” apostrophe—a curved right-hand single quotation mark (’)—over the “dumb” vertical variety. But autocorrect software can turn an apostrophe typed before a word—as in “the ’90s”—into an incorrect single left-hand quotation mark (‘). Apple’s new operating system includes “Smart Punctuation,” which by default turns apostrophes into the smart variety. “Having the proper apostrophe and smart punctuation in iOS 11 may seem like small details,” an Apple spokeswoman wrote in an email, “but its these small details that have always helped set our products apart.” Um, shouldn’t that be “it’s,” with an apostrophe? “OMG,” the spokeswoman responded, “my level of mortification is off the charts.” For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Tuesday, December 5, 2017 | A12A NY * * * * GREATER NEW YORK Sexual-Abuse Claims Pose Risk for Met Keri Rogers worked with prekindergarten students in Queens. Mayor Bill de Blasio has made public preschool free for all children. Spending Balloons Under de Blasio Agencies that saw the biggest increase in city dollars in ﬁscal 2018 from 2014 under Mayor Bill de Blasio FY2018, FY2014, in millions in millions Change Agency Health + Hospitals* Emergency Management Planning $485.5 $80.1 35.3 6.9 32.8 7.3 16.7 6.8 145 143.8 58.9 144 2.8 1.2 128 1,786.9 874.5 104 143.3 71.3 101 4.0 0 100 586.7 295.7 Design and Construction Housing Preservation and Development Correction Children’s Services Small Business Services Veterans’ Services costs that come from hiring thousands of workers. In the event of a downturn, she believes layoffs would be inevitable. “I wouldn’t be quite so hubristic about it,” Ms. Gelinas said. “There could be a time when we wish we had this money back.” Carol Kellermann, president of the Citizens Budget Commission, a watchdog group, said the mayor isn’t building enough reserves in the face of likely cuts in federal aid and the constant threat of an economic slowdown. “We are very concerned,” she said. “The mayor is not showing any interest in additional fiscal discipline to address these factors.” Mr. de Blasio has never made any secret of his desire to expand government. He ran for office in 2013 promising to address rising income inequality. He is a liberal Democrat who believes in the ability of government to improve peoples’ lives. Of the top 10 agencies that grew the most during the past four years under Mr. de Blasio, half oversee programs to fight poverty and build affordable housing. De Blasio administration officials say that is the right approach for a wealthy city that is still home to a large number of people living in poverty, where even middleincome residents struggle to find affordable housing. Please see BUDGET page A12B co Fo m rp m e er rs ci on al a us l, e on Under Bill de Blasio, the first Democratic mayor of New York City in more than two decades, the city has added more than 25,000 employees and spending has increased by nearly 20%. Since he took office in 2014, Mr. de Blasio has made preschool free for all children, an initiative that costs the city about $300 million a year. He has added nearly 1,300 police officers at an annual cost of $75 million. He spent more than $300 million to launch citywide ferry service and $4 million to create a new agency to work with veterans. “Our economy is strong and we can afford to help New Yorkers who need it most,” the mayor told The Wall Street Journal in a recent emailed statement. “Making those investments is not only moral, but it will help keep our economy strong and our city the greatest in the world.” City spending has risen by nearly 20%, to roughly $61.3 billion this year from about $51.2 billion in fiscal year 2014, the last budget negotiated by former Mayor Michael Bloomberg, a Republican turned independent. The rise is roughly four times the rate of inflation for the same period. Mr. de Blasio, who was reelected on Nov. 7, has been able to spend freely because city tax revenues have risen sharply New York City Government Expands Youth and Community Development 506% 409 348 98 *City funding increased to make up for declines in federal aid. Note: Figures are estimates. Fiscal year ends June 30. Source: NYC Ofﬁce of Management and Budget THE WALL STREET JOURNAL. during the past four years as well, outpacing the budget increases amid a booming economy. But the heavy spending means city finances could be pinched in the future, especially if the economy contracts. “We believe we can afford it,” said Dean Fuleihan, the mayor’s budget director. “We make sure we have reserves in place to protect us. At the same time, we have significant needs we need to address in the city.” The city’s overall budget has risen from $72.7 billion in November 2013, Mr. Bloomberg’s final months in office, to nearly $86 billion last month. Mr. Fuleihan noted that the city has increased its general-reserve fund to $1.2 billion from roughly $300 million when Mr. de Blasio took office. Nicole Gelinas, a senior fellow at the Manhattan Institute, a conservative think tank, studies the city budget and has expressed concerns about the increase in fixed no Unions See Benefits From Bigger Outlays LOUISE WATERIDGE/ZUMA PRESS In New York City, which has a unionized municipal workforce of more than 322,000, Democratic Mayor Bill de Blasio’s highspending approach to governing comes with political advantages. Pay raises helped calm seething tensions between Mr. de Blasio and the Patrolmen’s Benevolent Association, the city’s largest police union. The union had handed the mayor what some current and former aides say was the low point of his first term: The moment in Union members rallied to support 2015 when hundreds of police turned their backs on Mr. de Blasio at a funeral for an officer. served as a frequent thorn in the side of former Mayor MiYet, since reaching a $1.9 billion contract with the union chael Bloomberg. But it has this year, the group has receded been largely supportive of Mr. from the political fray. de Blasio, who agreed to raises The city’s teachers union his predecessor rejected. Mayor Bill de Blasio’s affordable housing agenda in March 2016. Pension obligations in the city are up $1.2 billion from four years ago, and now total about $9.5 billion annually. Administration officials say a significant part of the increase in person- nel and pension costs is the result of the city reaching labor agreements with municipal unions that Mr. Bloomberg left office without addressing. —Mara Gay The problem is the accusations against Mr. Levine taint the broader institution. years of Mr. Levine’s affairs, though no one could point to firsthand knowledge of an incident involving alleged sexual misconduct. “During the ‘80s, there were a lot of rumors about Jimmy and relationships with young musicians or young people,” said Joseph Volpe, who served as the Met’s general manager from 1990 to 2006. “No allegations were ever brought to my attention.” Mr. Levine’s manager didn’t respond to a request for comment Monday. Mr. Levine, who was the Met’s music director from 1976 until last year when he stepped down for medical reasons, had continued to work as the Opera’s music director emeritus. —Charles Passy contributed to this article. Tri-State Officials Decry GOP Tax Bill BY JOSEPH DE AVILA AND KATE KING n- BY MARA GAY The Metropolitan Opera already was struggling to get its financial house in order when the bombshell hit: Multiple allegations of sexual abuse by famed conductor James Levine, who served as the company’s music director for four decades. Those accusations, which led the Met this past weekend to suspend its relationship with Mr. Levine and launch an internal probe, could complicate its funding woes. The largest opera company in the U.S., the Met is heavily dependent on support from its loyal and moneyed donor base. The institution is working to reverse a yearslong box-office slide and restore its endowment, which stands at about $255 million. The risk is that the accusations against Mr. Levine taint the broader institution in the eyes of donors and attendees, both of which it can ill-afford to lose. The Met’s box-office dipped to $88 million in fiscal 2016, down from $91 million the previous year, according to the company’s most recent annual report. “The Metropolitan Opera…has survived the burning of the opera house, the Depression, and two world wars,” said Marc Scorca, chief executive of Opera America, an umbrella organization for the opera industry. “I would like to think the Met is about more than a century of great art, and not about any one particular individual.” For more than a year, the Met has known about an October 2016 police report from Lake Forest, Ill., alleging that Mr. Levine, who is now 74 years old, sexually abused a minor there three decades earlier. The company didn’t launch an internal probe until this weekend, after media reports surfaced outlining the alleged misconduct. “The right road is to get ahead of it,” said Davia Temin, chief executive of Temin and Company Inc., a reputation and crisis-management consultancy. “You have to demonstrate, from the time you start hearing of a report…that you are taking the moral high ground.” The Met didn’t take action until this weekend because the company was waiting for the police to determine if there was a case and didn’t want to interfere, a spokesman said Monday. “At the time, Mr. Levine said that the charges were completely false. It wasn’t until this weekend that more information, including people coming forward with new accusations, came to light,” the spokesman, Tim McKeough, said in an email. Many in the classical-music community said Monday that there have been rumors for ly . MARK KAUZLARICH FOR THE WALL STREET JOURNAL BY JENNIFER SMITH Elected officials in the tristate region Monday slammed the $1.4 trillion tax overhaul pending in the GOP-controlled Congress, calling it a politically motivated attack that would hurt middle-class homeowners. Democratic governors and lawmakers said the bill’s move to partially repeal state and local tax write-offs amounted to “double taxation” and “redistribution.” In a conference call with reporters, New York Gov. Andrew Cuomo and New Jersey Gov.-elect Phil Murphy, both Democrats, said limiting the deductions would increase taxes for homeowners in New York, New Jersey and Connecticut as a way to help pay for the overall proposal. “This takes from the richer states and has them subsidize a tax cut in the less wealthy states,” Mr. Cuomo said, noting that the states that would be most affected typically vote Democratic. “It’s political retaliation through the tax code.” Both U.S. House and Senate bills would allow for up to a $10,000 write-off for property taxes but no break for state and local income or sales taxes, often referred to as SALT. Supporters of the bill want to use funds created by limiting the deductions to help pay for business tax cuts, which they argue will accelerate economic growth. In New York about 35% of all filers claimed state and local tax deductions in 2015, along with 41% in both Connecticut and New Jersey, according the Pew Charitable Trusts. That compares with about 30% of all U.S. tax filers. U.S. Sen. Richard Blumenthal, a Connecticut Democrat, said limiting the deductions would damage the state’s housing market. “It will diminish the value of homes across the state,” he said. OYSTER PERPETUAL yacht-master 40 rolex oyster perpetual and yacht-master are ® trademarks. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. A12B | Tuesday, December 5, 2017 NY THE WALL STREET JOURNAL. * *** GREATER NEW YORK City Officials Grilled About Rikers Closure BY CORINNE RAMEY Average daily number of inmates in New York City jails, including Rikers. JULIE JACOBSON/ASSOCIATED PRESS Facing pressure from New York City Council members, city officials defended their progress toward closing Rikers Island, saying doing so isn’t merely a question of real estate but requires a sea change in how the criminal-justice system functions. “While ‘Close Rikers’ has become a convenient moniker, it masks the seismic system change that must happen in order to achieve that one goal,” said Elizabeth Glazer, director of the Mayor’s Office of Criminal Justice, during a City Council committee hearing on Monday to mark the progress of the jail complex’s closure. To close Rikers Island, which houses the city’s main jail complex, the New York City’s average daily population must shrink to 5,000 from about 9,100 today, city officials said. Closing the complex also would involve building jails in the boroughs, where they could face community opposition. Council members and others questioned whether sufficient progress had been made toward closing Rikers, which has long been plagued by violence. Administration officials say shuttering the island’s jails Some lawmakers question the 10-year time frame for closing the city’s jail complex on Rikers Island. would take about a decade, an estimate frowned upon by some council members on Monday. “The time for incremental reforms has come and gone,” said Queens Councilwoman Elizabeth Crowley, who chairs the council’s criminal-justice committee. “There has been a lot of talk but little action,” she added, saying fellow Democrat Mayor Bill de Blasio had announced plans to close the facility months ago. Councilman Daniel Dromm referred to Rikers Island as a “hellhole,” drawing sustained applause from the audience. Fellow Queens Democrat Don- ovan Richards Jr. said the idea that it would take 10 years was “shameful.” Inmates, he said, “come home broken” from Rikers Island. De Blasio administration officials said they had taken concrete steps toward planning for new jails in the boroughs and ultimately shuttering the com- plex. These have included reducing the number of people who are incarcerated and creating jail alternatives, Ms. Glazer said. The city has formed working groups to address issues involved with closing Rikers, including one that would focus on changing jail culture, she said. This fall, the city began working to eliminate sentences of less than 30 days, meaning some convicted of low-level crimes such as shoplifting or drug possession could participate in a social-service program instead of spending time in jail. Last month, officials issued a request for proposals for consultants to assess current jail sites in the boroughs and identify new ones. As the number of inmates decreases, shrinking the population further becomes increasingly tricky, Ms. Glazer said. “Who is left at Rikers Island will increasingly be those accused of violent offenses,” she noted. Earlier this year, an independent panel led by former Chief Judge of New York Jonathan Lippman recommended closing Rikers. Testifying at Monday’s hearing, Mr. Lippman lauded the political consensus around closing Rikers but said the officials must think more boldly about decreasing the population and not get caught up in city bureaucracy. Removing three populations that he said shouldn’t be on Rikers— women, children and the mentally ill—should happen quickly, he said. There should be one jail in each borough, near the courthouses. “This isn’t nuclear science,” he added. space at 55 Hudson Yards, according to Related Cos., which is developing the building with Oxford Properties Group and Mitsui Fudosan America. The companies will be joining Point72 Asset Management LP, as well as Third Point LLC. The 1.3 million-square-foot tower is 90% leased, Related said. Engineers Gate, founded by investor Glenn Dubin, and Mr. Dubin’s family office will leave their current location at the GM Building in midtown. HealthCor plans to depart from Carnegie Hall Tower on West 57th Street and will take about 18,000 square feet in the Hud- son Yards building. Arosa Capital Management LP, now at 120 W. 45th St., has signed a lease for just more than 10,000 square feet. Till Bechtolsheimer, chief executive of Arosa, cited the “stateof-the-art facilities, infrastructure and mixed-use design” as reasons why the company was attracted to the project, according to a statement. The venture led by Related has been on a roll, completely leasing or selling space at two other towers in the 18-million square-foot development. Earlier this year, the venture closed on a $1.5 billion construction co Fo m rp m e er rs ci on al a us l, e on BY KEIKO MORRIS ly . Hudson Yards Draws More Firms Three investment firms soon will be heading to Hudson Yards, the latest indication that the mammoth far-West Side development rising above a rail yard is luring financial companies away from moreestablished office corridors. Quantitative-trading firm Engineers Gate Manager LP, along with energy-market focused Arosa Capital Management LP and health-care and life-sciences investment firm HealthCor Management LP, have signed leases totaling about 56,000 square feet of MIKE SEGAR/REUTERS no ®ROBERTOCOIN n- A Foggy Day in New York City LOW VISIBILITY: Commuters on a Hudson River ferry photographed the shrouded skyline as the sun rose Monday. Rain was forecast for Tuesday with mild temperatures reaching a high of 60. BUDGET ROBERTO COIN BOUTIQUE Westfield World Trade Center Oculus | Main Level C2 New York, NY | 212.287.1299 PRINCESS FLOWER COLLECTION | robertocoin.com Continued from page A12A Spending on the city’s homeless-services agency roughly has doubled, to $888 million in Mr. de Blasio’s first four years in office. City spending on the child-welfare agency is up 17%, to more than $1 billion this year from $874.5 million under Mr. Bloomberg. Spending on its cash-strapped hospital system has grown to $485.5 million this year, a more than 500% increase from four years ago. For James Anthony Brown, a Navy veteran who has struggled with bouts of homelessness, those investments may have made a difference. Mr. Brown, 58 years old, was living in a homeless shelter near the East River when he got help from a man named Tommy Lloyd—a specialist with the newly created Department of Veterans’ Services—and things began to turn around. “He took me out on housing interviews, he made sure I stayed employed, he gave me words of wisdom,” Mr. Brown said. Before long, Mr. Brown moved into an apartment not far from the Bronx Zoo. Despite increased spending on poverty programs under Mr. de Blasio, education and police continue to make up two of the largest agency expenditures, as they did under Mr. Bloomberg. City spending on the Department of Education, which oversees the largest school district in the country and makes ‘Our economy is strong...we can afford to help New Yorkers who need it most.’ up nearly 20% of the total city budget, rose to $11.6 billion this year from $9.3 billion four years ago. Spending on the New York Police Department grew by a fifth, to $5.2 billion this year from $4.3 billion under Mr. Bloomberg. The NYPD makes up more than 8% of the budget in a city that has seen record drops in crime for two decades. Asked at what point spending becomes unsustainable, Mr. Fuleihan said city budget officials are “making that evaluation on a constant basis…there’s no magic number.” Ratings firms have agreed. Fitch Ratings and Moody’s Investors Service regularly have published reports praising the mayor’s handling of the city budget during the past four years, while sounding gentle notes of caution about increases in pension costs. Underlying their analysis, they say, is a confidence in budget controls that have been in place since the city’s fiscal crisis in the late 1970s. The ratings firms say New York City enjoys unusual advantages that make its economy more resilient than most because of its status as a global tourist destination, and its massive and diverse tax base. “It’s a growing city and so we would expect the budget to grow,” said Amy Laskey, a managing director at Fitch. While the city is thriving, it isn't invincible, said Gerald Benjamin, a political scientist at the State University of New York at New Paltz. “New York City is exceptional, but the question is, how exceptional? We don’t know.” loan for 50 Hudson Yards, which will be anchored by giant money manager BlackRock Inc. Last year, 10 Hudson Yards, which is home to fashion retailer Coach Inc. and software giant SAP SE, opened and is fully leased. Another building, 30 Hudson Yards, also is fully committed and is set to open in 2019 with a roster that includes one of the world’s largest private-equity firms, KKR & Co., which signed its deal in 2015. “KKR’s decision to move to the west side was a pivotal moment,” said Stephen Winter, vice president of commercial leasing at Related. GREATER NEW YORK WATCH MEDIA City Council Curbs Reporters’ Access The New York City Council on Monday banned news reporters from the east wing of City Hall, limiting access to the lawmakers inside a public building. Council officials offered no explanation for the change, which ended a decadeslong tradition of giving the city’s press corps access to the Council’s side of City Hall. The informal policy gave reporters robust access to ask questions of the city’s 51 council members. It had been in place for at least 20 years. A spokeswoman for City Council Speaker Melissa MarkViverito didn’t immediately respond to a request for comment. Robin Levine, the spokeswoman, said on Twitter that reporters were only protesting the change because they wanted access to a coffee machine and a restroom. —Mara Gay TRANSPORTATION Double-Decker Buses Come Under Scrutiny A lawmaker is raising concerns about double-decker sightseeing buses in New York City, saying Monday that tougher regulations are needed to protect tourists, pedestrians and motorists on the busy streets of the nation’s largest city. Democratic state Sen. Brad Hoylman, of Manhattan, urged the state to beef up its rules for the tourist buses. He said several legal loopholes allow the buses to skirt the safety and regulatory rules that apply to other kinds of buses. Double-decker tourist buses are treated differently in state law than school, charter or public transit buses. Double-decker buses don’t have to follow the same rules requiring driver medical exams and driving tests, are exempt from laws barring sex offenders from driving other kinds of buses and aren’t held to the same insurance regulations. Twin America LLC, the largest provider of bus tours in the city, didn’t return a message seeking comment. —Associated Press For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Tuesday, December 5, 2017 | A13 LIFE&ARTS Happier Holidays With Meditation Dr. Goleman’s tips on how to use meditation to help you this holiday season. Start with your breath. Find a quiet place where you won’t be distracted. Sit upright in a comfortable chair. Close your eyes, relax and bring your full focus to your breath. Don’t try to control it. Just notice your natural inhales and exhales. Do this for at least 10 minutes. Notice if your mind wanders. And rein it back in. Refocus on your breath. Dr. Goleman says that paying attention to each breath takes your mind off the thoughts that are troubling you. Think of them as distractions. Don’t judge yourself. Your mind is going to wander continuously. BONDS: ON RELATIONSHIPS | By Elizabeth Bernstein going to the gym and lifting weights. Every time you lift the weight, you make that muscle a little stronger. And every time you bring your mind back to your meditation, you make the neural circuity in your brain a little stronger. There are many beneficial effects of this simple exercise. Attention strengthens. Concentration improves. Memory improves. Learning improves. And because the same circuitry in the brain that focuses your attention also manages the amygdala, which causes you to get anxious or upset or depressed, people have a double benefit: They react less strongly to things that used to upset them and recover more quickly when they do get upset. n- Can everyone benefit from meditation? I just taught a 5-year-old. He was at Thanksgiving with a Batman costume on. I said: “Do you want to know how Batman got his powers?” He sat still watching his breath for a half-hour. Everyone’s mind can become more quiet. Often people have the wrong idea that meditation is about thinking no thoughts, that your mind is totally quiet. It isn’t about that. It’s about noticing when your mind wanders and bringing it back. no What are the key elements of meditation? Every kind of meditation retrains attention. It’s the basic mental-fitness exercise. Ordinarily, our mind wanders half the time. In meditation, you bring discipline to the mind and try to keep it focused on one thing. When your mind wanders, you bring it back to that thing. This is roughly parallel to co Fo m rp m e er rs ci on al a us l, e on A Daily Workout for the Brain SHOULD YOU MEDITATE? Psychologist and author Daniel Goleman—well-known for his 1995 book “Emotional Intelligence”— spent almost two years combing through more than 6,000 academic studies on meditation with a team of researchers to sort through the hype and discover the real benefits. He wrote about his findings in a new book, “Altered Traits: Science Reveals How Meditation Changes Your Mind, Brain and Body,” which he co-authored with Richard J. Davidson, a neuroscientist who directs a brain lab at the University of Wisconsin-Madison. Dr. Goleman, who has been meditating for almost 50 years and wrote his 1973 psychology dissertation at Harvard on meditation and stress, says that research shows meditation can decrease symptoms of depression and anxiety. A specific practice called loving-kindness meditation can boost compassion. And people who meditate regularly will have lasting positive changes in their brain. Here are edited excerpts from an interview with Dr. Goleman: Use flashcards. If you have recurring thoughts that are particularly troubling, write them down on one side, then write your counter-thoughts on the other. (If you feel lonely or unloved this holiday season, write down all the people who do love you.) Carry the card with you and pull it out and focus on it when you need to. ly . ILLUSTRATION BY JEAN TUTTLE Don’t get frustrated. The challenge is to notice that your mind has wandered and bring it back. That’s just another thought, and there are no good or bad thoughts. What are the main types of meditation? There is concentration—keeping your focus on one point, such as ‘Everyone’s mind can become more quiet,’ Daniel Goleman says. your breath. Transcendental Meditation is one variety of this, where you use a Sanskrit sound— a mantra—as your point of focus. Visualization is where you use an image, such as the Buddha, or something you find pleasant. Movement meditation can be used while you are walking or doing Tai chi. In mindfulness, you don’t try to control what comes into your mind but rather try not to get caught up in it. You watch your thoughts come and go. Can meditation be used in therapy for depression? One of the new findings is a metaanalysis that shows that meditation decreases symptoms of anxiety and depression as well as medication. Another study shows that mindfulness-based cognitive therapy (MBCT) lowers the relapse rates of chronic depression. Cognitive therapy encourages people to counter their negative thoughts, but doesn’t give them a method for first recognizing them. Mindfulness helps you spot the thought as it is happening. You use it like a radar. Let’s say it’s Christmas and you’re alone and have the repetitive thought that no one loves you, your life is worthless. If you get sunk in those thoughts, that is a recipe for a very blue holiday. Mindfulness allows you to notice when you have those thoughts and not get lost in them, and to challenge them using methods from cognitive therapy. How can we use meditation to make us more compassionate? This is called loving-kindness meditation. You think of people who have been kind to you in your life and feel gratitude and wish them well. Then you think of yourself, and you send yourself those feelings—you wish yourself well. Research shows this activates the dopamine circuitry in your brain, strengthens the regulatory circuits that manage stress and lowers your stress hormones. It makes you more generous and more likely to help others. And it lessens activity for self-focus, which also helps you become more compassionate because you are more open to noticing people around you and what their needs are. Send yourself love. Remember all the people in your life who have been kind to you and loved you. Focus on feeling that love again, from them. Accept that your mind is normal. When you start meditation, you feel like it is out of control. In the East, they call this your monkey mind. Realize everyone is like this. And it’s a good sign that you are feeling it. It means that you’re aware of how the mind behaves and trying to tame it a bit. How can someone start meditating? If you have a good meditation center near you, go there. If that’s not easily done, you can get a number of apps. The way you evaluate an app is to evaluate the person teaching the meditation: How long have they been doing this? What is their reputation? How serious are they? How quickly can we feel positive effects from meditation? The compassion studies show effects within seven minutes, although they’re short-lived. The longer you do it, the stronger the benefits. This is why we called the book “Altered Traits.” A trait is a lasting change. Every time you meditate you strengthen the neural circuits that are used during that meditation. At a certain point, this becomes lasting. We think this happens gradually—the more hours you put into it, the stronger the effect is, just like strengthening a muscle. Write to Elizabeth Bernstein at email@example.com and follow her on Facebook, Twitter and Instagram at EBernsteinWSJ. YOUR HEALTH | By Sumathi Reddy SCIENCE SOURCE WHICH HEART PATIENTS NEED STENTS? Stents are metal devices implanted during common angioplasty procedures to prop open clogged arteries in patients with cardiovascular disease. But recent studies are increasingly questioning whether they really benefit patients with stable coronary artery disease. NEARLY EVERY DAY for the past month Roxana Mehran, an interventional cardiologist at Mount Sinai Hospital in New York City, and her colleagues have been getting calls from patients wondering if their stents were really necessary. Yes, the doctor assures them, they were prime candidates to receive a stent, a small device used to prop open clogged arteries in patients with cardiovascular disease. Dr. Mehran, who is chair of the American College of Cardiology’s Interventional Council, says she told one such patient, “Don’t worry, I made sure with the physiology test. You were having three to four episodes of chest pain a week. You couldn’t walk two blocks.” A study in the journal the Lancet in November has fueled an already contentious debate within cardiology over which patients really need stents. Doctors are far from a consensus on the matter. Lost in the fray: confused and concerned patients. Stents are implanted during angioplasty procedures called percutaneous coronary interventions, or PCIs. Over one million stents were implanted in U.S. patients last year, according to the American College of Cardiology’s national registry of heart catheterization facilities, which encompasses about 85% of facilities in the U.S. Most cardiologists agree that in patients with acute coronary syndrome—those who have a heart attack or frequent chest pain— stents can be a lifesaver. It’s in patients with stable angina, or chest pain that occurs only when they exert themselves, that questions remain. Some experts say a landmark 2007 New England Journal of Medicine study proved that stents don’t prevent heart attacks and death in patients with stable coronary artery disease. The 2,287-patient study found that heart medication was just as effective as stents in preventing heart attacks and death in such patients. The new Lancet study was conducted by researchers in the U.K. and was nicknamed the ORBITA trial. It found that patients with stable chest pain who received stent devices had no statistically significant improvement in their exercise time on a treadmill when compared with patients who received no stents during a fake procedure. All the patients took heart drugs for six weeks before their procedures. Doctors perform about 500,000 PCI procedures every year world-wide on patients with stable angina, according to the study. Studies have estimated that 20% of those Please see STENT page A14 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. A14 | Tuesday, December 5, 2017 LIFE & ARTS STENT LYNN LANE (2) Continued from page A13 surgeries in the U.S. are done on that subset of patients. Long criticized as an overused procedure, the unnecessary insertion of stents fell by about 50% between 2010 and 2014, according to a 2015 study published in JAMA. The drop followed guidelines issued in 2009 that discouraged stent use in patients with stable disease and minimal symptoms of chest pain. The Lancet study included only patients with one narrowed artery. Patients had chest-pain symptoms for over eight months, though about 10% had no further chest pain after being treated with medication for six weeks. They were still included in the study. Doctors perform over 20% of angioplasty procedures on U.S. patients with stable angina who have no symptoms, says Rasha Al-Lamee, lead author of the Lancet study and an interventional cardiologist at Imperial College London. But Dr. Mehran notes that some patients had a borderline lesion, which is an artery that is 50% to 70% blocked. “This was really a healthy patient population,” she says. “These are not the patients we see every single day.” Ian Meredith, chief medical officer at Boston Scientific, a leading maker of stents, says that there is a wide spectrum of symptoms in patients with stable angina and that some patients can’t tolerate taking multiple heart medications. Lauren Snouffer and Daniel Belcher, above, and the cast of ‘The House Without a Christmas Tree,’ top ments to that season’s program. “The House Without a Christmas Tree” is a charming, familyfriendly piece that manages to be heartwarming without being sappy. Royce Vavrek’s skillful libretto, based on an original story by Gail Rock and the 1972 television movie of the same name, embraces its theme of how relentless holiday cheer can magnify the grief of loss. Preteen Addie, growing up in a small Nebraska town, cannot understand why her widowed father, James, won’t allow her to have a Christmas tree. Over the course of the well-structured, 72-minute opera, she learns that he associates that symbol with Weather the only Christmas he had with her mother, Helen. When Addie wins a Christmas tree at school and brings it home, everyone is forced to confront the elephant in the room. Mr. Gordon’s score employs accessible, Coplandesque tonality, which has its apex in Addie’s arias. Sung with appealing urgency by soprano Lauren Snouffer, they capture a young girl’s imagination and optimism. The darker side of the story, especially James’s seeming rejection of his daughter, is less clearly defined in the music. The text is clearly set, and wellcrafted ensembles vary the texture, as do bigger choruses, most C lgary gary Calgary 40s ttl Seattle 30s Por P tl d Portland l Helena 40s g Eugene i Boise Reno 30s t Sacramento an Francisco San 70s Los A Ange Angeles San Diego 70s 0s 10s 20s 30s 20s <0 0s 10s 20s 40s ip Winnipeg 20s 10s 30s 20s Montreal Bismarckk g Billings 50s 60s 0s no V Vancouver 40s A t Augusta T Toronto Mpls./St.. Paul Pau ttawa Ottawa Albany A b ny 40s 80s 70s Miami 80s 80s 60s U.S. Forecasts 3 30s 20 21 24 25 Ice City Omaha Orlando Philadelphia Phoenix Pittsburgh Portland, Maine Portland, Ore. Sacramento St. Louis Salt Lake City San Francisco Santa Fe Seattle Sioux Falls Wash., D.C. Today Hi Lo W 40 30 pc 83 63 s 62 47 r 72 51 pc 54 29 r 47 45 r 49 36 s 60 32 s 48 31 pc 35 19 s 62 45 s 45 18 pc 46 35 s 26 20 c 63 44 r Tomorrow Hi Lo W 39 16 sf 83 58 sh 49 35 pc 74 48 pc 41 24 s 48 26 r 51 37 s 60 34 s 48 24 pc 37 20 s 62 47 s 45 20 s 50 34 s 28 11 c 51 37 pc International 30 Hi 47 57 74 86 46 46 43 77 79 47 48 Today Lo W 40 c 42 sh 53 s 75 c 26 s 40 c 37 c 64 pc 63 s 44 c 45 c Tomorrow Hi Lo W 48 37 c 54 44 s 70 51 c 90 76 pc 47 26 s 44 37 c 45 35 c 83 62 pc 79 62 s 54 44 r 53 46 r Tomorrow Hi Lo W 42 31 pc 43 31 s 86 64 pc 70 63 pc 47 43 s 92 76 pc 53 41 sh 71 52 r 53 48 c 51 27 s 89 77 pc 71 52 r 74 47 pc 49 34 s 27 22 sn 83 71 pc 42 33 s 82 73 pc 77 50 s 57 40 s 83 76 sh 41 27 s 51 41 pc 87 78 t 76 64 t 70 61 c 53 41 s 36 24 pc 48 36 s 44 40 sh 35 27 s 34 35 8 9 10 22 26 31 27 44 62 28 29 55 56 33 45 42 46 49 51 57 13 38 41 48 50 12 23 32 40 43 11 16 37 47 61 7 19 36 39 52 58 63 53 59 64 54 60 65 66 67 68 69 70 71 VEDGETARIAN | By Brian Thomas Across 1 From Cardiff, say 6 Pursuers of perps 10 Letters on a Soviet spacecraft 14 Wed secretly 15 Aftereffect of overexertion 16 Post-bath garment 17 Raisins or prunes, e.g. 19 “Frozen” queen 20 Lieberman’s running mate 21 Under the weather 22 Atlantic swimmer 24 Scoped out 25 Empty space 27 In the midst of 30 French or Italian, e.g. 33 Golf goal 34 Responses to bad jokes 37 “Didn’t need to know that, BTW” 38 He had the title role in “An Officer and a Gentleman” 39 Phrase differently 41 Researcher’s field 43 End for novel or sermon 44 Pretense 46 Attempts to pick up 47 Make a blunder 48 Little bread boxes? 50 Eucalyptus muncher 52 Massachusetts congressman Richard 53 Situated on 57 Largest island in the Caribbean 59 Jamaican genre 60 Country singer McCann 61 Ireland, to poets 63 Entree accompaniers, and a feature of this puzzle 66 Sphinx site 67 Brit’s baby buggy 68 Shift-6, on most keyboards Solve this puzzle online and discuss it at WSJ.com/Puzzles. s City Amsterdam Athens Baghdad Bangkok Beijing Berlin Brussels Buenos Aires Dubai Dublin Edinburgh City Frankfurt Geneva Havana Hong Kong Istanbul Jakarta Jerusalem Johannesburg London Madrid Manila Melbourne Mexico City Milan Moscow Mumbai Paris Rio de Janeiro Riyadh Rome San Juan Seoul Shanghai Singapore Sydney Taipei Tokyo Toronto Vancouver Warsaw Zurich Today Hi Lo W 40 35 c 41 29 pc 85 62 s 71 63 c 47 39 c 92 76 pc 67 49 c 68 57 t 48 41 c 52 24 s 90 77 pc 72 55 c 76 46 s 48 30 s 27 20 sn 87 76 r 45 34 c 83 72 pc 72 43 s 55 35 s 84 77 sh 32 27 s 46 33 s 88 78 c 73 63 sh 64 56 c 57 40 s 51 26 r 45 34 s 40 38 sh 38 27 pc 6 40s Flurries Showers 5 15 50s t Boston 4 14 oux FFalls ll P Pierre Sioux Honolulu l l s...sunny; pc... partly cloudy; c...cloudy; sh...showers; t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Today Tomorrow City Hi Lo W Hi Lo W Anchorage 38 27 sn 36 27 sn Atlanta 68 43 c 54 41 c Austin 59 39 sh 50 38 r Baltimore 62 43 r 50 33 pc Boise 38 21 s 38 22 s Boston 51 49 sh 52 32 r Burlington 51 38 r 40 30 pc Charlotte 68 50 sh 58 41 pc Chicago 38 24 pc 35 22 s Cleveland 53 27 r 39 24 pc Dallas 57 42 pc 61 40 s Denver 48 22 s 39 19 pc Detroit 47 26 c 37 27 c Honolulu 80 66 c 81 65 pc Houston 72 43 r 51 42 r Indianapolis 44 25 pc 40 22 s Kansas City 47 30 pc 45 24 pc Las Vegas 58 38 s 62 42 s Little Rock 54 36 pc 59 31 s Los Angeles 71 50 s 75 52 s Miami 83 72 s 85 71 pc Milwaukee 37 22 pc 33 20 pc Minneapolis 23 15 pc 24 8 s Nashville 58 34 r 54 29 s New Orleans 79 50 t 53 43 r New York City 60 48 r 49 34 pc Oklahoma City 52 30 pc 56 25 s 2 18 20s 40s 1 17 50s 60s rtford Hartford k Milwaukee t Detroit l Buffalo ew Y New Yorkk 70s Ch Chic g Chicago 30s Salt Lake City 20s C es Moines Des heyenne y Cheyenne Ph hil d lphi h Philadelphia Cleve d Cleveland 80s h Omaha P Pi b h Pittsburgh Springfield p g 40s Denver 90s hington hi gton D.C. DC Washington d p Indianapolis Kansas 20s Topeka Colorad C l d Colorado City C h Charleston 100+ h d Richmond Las p Springs . Lou L St. Louis L Lou ill Louisville h Wichita Ve Vegas 60s Raleighh h Nashville ta FFe Santa 50s Ch l Charlotte Memphis hi C b Columbia Albuquerque Ph Phoenix klahoma homa City Oklahoma Warm Rain A Atlanta Little Rock 70s gh h Birmingham ll Dallas 70s Tucson FFt. Worth th D Cold T-storms El P Paso JJackson k Jacksonville A ti Austin bil Mobile Stationary Snow an Antonio A t i San l d Orlando w Orleans New Houston Tampa 60s 70s Anchorage A h g “Certainly medications are the desired therapy for people with a low burden of symptoms and who are coping pretty well with their daily living,” he says. Deepak L. Bhatt, executive director of interventional cardiovascular programs in the Heart & Vascular Center at Brigham and Women’s Hospital in Boston, cautions that ORBITA was a small study that shouldn’t change current clinical practice. As to the broader question of whether too many patients are getting stents, Dr. Bhatt says it depends on which category of heart patients you look at. “The majority of stents go in for acute coronary syndromes,” he says. “In that situation, if anything there’s an issue of patients being undertreated, especially the highest-risk patients.” Dr. Bhatt says the use of stents for stable coronary artery disease has gone down ever since the landmark 2007 trial was published. “I don’t think there’s this vast overuse of stents,” he says. (He adds that he has no financial ties to any stent makers.) But David Brown, a professor of medicine at Washington University School of Medicine in St. Louis, wrote a strong accompanying editorial in the Lancet saying it showed “unequivocally that there are no benefits for PCI compared with medical therapy.” Dr. Brown hopes clinical practice will change as a result. He says most patients with stable angina likely have obstruction of their microscopic arteries, so stenting of the large vessels wouldn’t relieve symptoms. The WSJ Daily Crossword | Edited by Mike Shenk Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. d t Edmonton Some doctors argue that stents are overused. Others say they’re underused for certain patients. co Fo m rp m e er rs ci on al a us l, e on A Temporary Home for The Holidays n- Houston HOUSTON GRAND Opera’s latest world premiere, Ricky Ian Gordon’s “The House Without a Christmas Tree,” which opened on Thursday, is a holiday tale that celebrates the victory of the sweet over the bitter. The fact that it happened at all is a similar victory. When Hurricane Harvey devastated Houston in August, the Wortham Theater Center, HGO’s home, was catastrophically flooded. To salvage the seven-opera season, Perryn Leech, HGO’s managing director, came up with a plan for an alternative performance space in the nearby George R. Brown Convention Center. Thus was born HGO’s Resilience Theater, built in two weeks in a raw space the size of two football fields, at a cost of about $500,000, just in time for the company’s first performance of “La Traviata” on Oct. 20. With heavy curtains, rows of bleacher seats, and specialized lighting, HGO conjured something from nothing. There’s even a spacious lobby area with seating, food service, and portable toilets. The theater is not ideal; one key issue is acoustics, and both Handel’s “Julius Caesar” and “Christmas Tree” used amplification. The theater has no flying capability, so some scenery has had to be tweaked. While the company’s subscribers have taken the new digs in stride, single-ticket purchases are down 40%. Including physical losses (the costume shop, for example, was destroyed) and other Harvey consequences, HGO estimates an overall impact of $12 million to $15 million. It expects to be back in the Wortham for 2018-19, but is already making some financially prudent adjust- notably Mr. Gordon’s original carol, “Gather Round the Christmas Tree,” which also recurs as a motif in the orchestration. Patricia Schuman sounded woolly but sincere as Grandma Mills; Daniel Belcher was a gloomy presence as James. The protean Heidi Stober brought distinctive characters to three roles: bright as Adelaide (the adult Addie); warm as Miss Thompson, Addie’s teacher; and sweet as the ghost of Helen, who appears to James and draws him into a waltz of memory. Megan Mikailovna Samarin displayed a rich mezzo as Addie’s best friend, Carla Mae (the two share a funny duet, in which they smash hard-boiled eggs that they pretend are boys), and two high-school students, Maximillian Macias and Elisabeth Leone, were capable as Billy and Gloria, Addie’s schoolmates. (One caveat: The fact that Billy bullies Addie because he actually likes her feels very creepy today.) The Juvenile Chorus of high-school students played the other children, and Bradley Moore ably led the chamber orchestra, which was positioned to the side of the stage. The amplification, with sound design by Andrew Harper, was subtle enough to bring out the transparency of the orchestration and preserve a balance with the singers. James Robinson’s production—with sets by Allen Moyer, early 1960s costumes by James Schuette, and lighting by Christopher Akerlind—cleverly captured the small-town feel of the show, with the Nebraska house rotating to reveal different rooms. For the schoolroom scenes, two simple panels were pulled in front of it. Like the opera, it was homespun and sophisticated at the same time. —Ms. Waleson writes about opera for the Journal. ly . OPERA REVIEW BY HEIDI WALESON 69 Attendee, in combinations 70 Island with a terrier named for it 71 Yoga position Down 1 Club for the sand trap 2 Youngest Jetson 3 Its valley is called “the cradle of the French” 4 Matchmaking event with a timer 5 “___ fly through the air with the greatest of ease” 6 Music’s Santana 7 Ophthalmologist, quaintly 8 Letter before chi 9 Filming locations 10 Filling for a doughnut 11 Scenes preceding title sequences 12 “Scorpion” airer 13 Unimpressive brain size 18 First-class 23 Spooky woman 26 Turns down, in a way 28 Drug trafficker 29 Golf goal 31 Virus component, often 32 Saint plied with milk and cookies 34 Alphabet that gave us the word “alphabet” 35 Nostalgically chic 36 Shut out 38 Knocks it out of the ballpark, academically 40 Business sch. course 42 “There’s no ___ team” 45 Mardi Gras, for one 48 Fare catch? 49 “I wanna come too!” 51 Like some rovers 54 Pageant crown 55 Of yore 56 Starchy staple 58 Hieroglyphic creatures 61 Spur (on) 62 Where Simone Biles won four gold medals 64 Bother 65 Obamacare, for short Previous Puzzle’s Solution A M A S S P A N I C A F R O L O O N R MA A C R E E A X D T D R I AMA G U T A R R MA U E E S V I E A T A L E B UM E E S E R A R E L Y T R A D E E MA I T R T I P I C L E D U E T A S O S C R E A I R O N D I N S C S A A S I D O H S U L E S S R U T R E D V Y E A A V C A T I D O L P A N AMA L Y L O N G C O T A WE L E S R E O N S L O O T I N N S E V A D E S E N S E For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Tuesday, December 5, 2017 | A15 LIFE & ARTS BOOKS Sam Shepard’s Dying Words BY CARYN JAMES co Fo m rp m e er rs ci on al a us l, e on ly . FROM TOP: RICHARD SCHROEDER/CONTOURGETTY IMAGES; JIMI CELESTE/PMC IN THE LAST YEAR of his life, as the degenerative disease ALS made his muscles progressively useless, Sam Shepard completed an autobiographical novel about a man suffering from a similar but unnamed illness. Unable to hold a pen, Mr. Shepard spoke into a voice-activated recorder. When he could no longer hold the recorder, he dictated to his daughter, Hannah, or his sisters, Roxanne Rogers and Sandy Rogers, who transcribed and read the notes back to him. “Sometimes he wanted to dictate things at night before going to sleep,” Roxanne Rogers says. “I kept a notebook close so that he could just ask to write something down and it could be dictated on the spot.” This week, Knopf will publish “Spy of the First Person” by Mr. Shepard, who died in July at age 73. “People think of Sam Shepard as the solitary cowboy of American myth riding off into the distance,” says LuAnn Walther, his longtime editor. “But in truth he was dedicated to his family his whole life.” In turn, his family gathered to help him put his last and most personal book on paper. “He’s a writer so he needed to write every day to be himself, and that was our mission, to help him be as close to normal as possible,” says Sandy Rogers. The elliptical “Spy,” only 82 pages long, is stylistically similar to the eloquent, often droll fiction he had been writing for decades, with multiple narrative voices and some chapters as short as a paragraph. Along with plays considered among the best of the 20th century, including “True West” and the dark family saga “Buried Child,” Mr. Shepard wrote many fiction collections that are teasingly autobiographical. “The line between fact and fiction in his own work was always very ambiguous to Sam, I believe. Many things blended together for him,” Hannah Shepard says. In “Spy,” an unidentified firstperson narrator looks voyeuristically across the street, fascinated by a strange man in a rocking chair on the porch. “His hands and arms don’t work much,” the narrator says. “He wavers when he stands.” The man in the chair becomes suspicious of the neighbor peering at him through binoculars. It soon becomes clear that they are the same person, a man observing himself from the outside, his failing body so alien that he doesn’t recognize it as his own. to talk about Mr. Shepard’s illness; they simply respected his privacy. “Because it was generally known in the industry that Sam was publicity-averse, that created its own cloak of protection,” Mr. Herald says. “There was no selfpitying that I ever observed. He just wanted to keep working.” That spring, he returned to his home, a farm near Midway, Ky., where various family members would come to stay. For Mr. Shepard, who had always written on a typewriter, finding a new way to compose was a challenge. He tried voice-activated software. “Sam was suspicious of technology, and the failure of these devices and computer programs just confirmed his lack of faith in them, I think,” his daughter says. “Recording was a very different experience for him than the physical act of writing, and he found it somewhat disorienting,” but adjusted. “He wrote almost every day and as the pages expanded I read the book to him many times, sometimes twice a day,” says Roxanne Rogers. “Each time I read it to him he made some small changes.” He didn’t ever talk about his artistic intentions for the book, she says, only “that he wanted to complete it.” His old friend Patti Smith came for extended visits, reading the manuscript aloud so he could structure the book’s short sections. He made final edits just a week before his death, dictating changes to his daughter as she read the manuscript to him, start to finish. “Some of the funniest lines in the book, in my opinion, he added in our last edit,” Hannah says. She chooses not to point them out. “I would rather keep this personal, as a memory between me and my father.” The book’s last chapters are the most brutal and the most emotional. “One year ago exactly more or less, he could walk with his head up,” the narrator says of himself. “He could wipe his own ass.” The final scene is happier: a family dinner in a Mexican restaurant, the man in the wheelchair surrounded by his three children and two sisters. As his sons wheel him home, the book lifts the veil of fiction, and Mr. Shepard mentions his family members by name. “Perhaps naming everyone just let us exist in that one moment together,” Roxanne Rogers says. “Or perhaps it is just a ‘thank you.’ We don’t know.” Above, Sam Shepard in Cannes in May 2005. Below, in New York City in 2006 with Jessica Lange and their children, Hannah Shepard and Walker Shepard. Herald says. “Even though he was a deeply private man, he was very open with people about saying, I’ve been diagnosed with ALS.” Scott Elliott, who directed that production, says Mr. Shepard came to rehearsals and was actively involved. “In the inner circle, everybody in rehearsal, it was all open and honest, and beautiful and horrible,” he says. No one was explicitly told not no n- At times a third-person voice describes memories of the past and poetic observations of nature. But the trajectory is of a man who is eventually pushed in a wheelchair by his three children, as Mr. Shepard was. Hannah, 31, and her brother Walker, 30, are his children with Jessica Lange, his partner for nearly 30 years. His older son, Jesse, 47, is from his early marriage to O-Lan Jones. Although the public was stunned to hear of Mr. Shepard’s death, by early 2016 friends and colleagues knew about his diagnosis of ALS (amyotrophic lateral sclerosis). The disease leads to total paralysis, is irreversible and always fatal. His last major New York production, a revival of “Buried Child,” opened that February. Patrick Herald, Mr. Shepard’s agent, remembers him sitting in the lobby of the theater. “He was physically drooping and his mobility was impaired. You could see his hands were getting gnarled,” Mr. Pain relief that’s not in a pill! 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A16 | Tuesday, December 5, 2017 SPORTS OLYMPICS IOC to Rule on Russian Olympic Ban The decision comes amid continued investigations into a widespread doping and cover-up scheme at the 2014 Sochi Games implementation of the sample-swapping scheme was one of the worstever blows against the integrity and reputation of the Olympic Games.” Ahead of the meeting in Lausanne, sport officials, athletes, and the Russian government have taken a range of positions on the range of potential sanctions. Some federations have already indicated they are against collective punishment, as the International Ice Hockey Federation stated last week. “Although we recognize the need to confront doping in sport, Olympic participation should not be used to sanction the many for the actions of the few,” the federation said in a statement. Max Cobb, the president and chief executive of the U.S. Biathlon Association and a member of the International Biathlon Union, said the global governing body has already scheduled an extraordinary meeting in the days after the IOC decision to discuss the outcome of the decision. “Russia’s been a perennial medal favorite in the sport of biathlon, so it would change the face of the competition if they weren’t NFL there,” he said. Two of the Sochi medals rescinded by the IOC disciplinary commission were taken from the Russian biathlon team. Martin Fourcade, a double Olympic champion in biathlon from France, said in an interview with French news agency Agence France-Presse, that “if it is proven that there has been institutionalized doping and that all athletes in Sochi have benefited, these athletes should not go to Pyeongchang. If it is only a few individuals, then we must punish these individuals and not the entire Russian nation.” Anti-doping authorities from seven nations, including the U.S., U.K., Germany, and South Korea, launched a social media campaign in October featuring Olympic athletes who say that dopers “stole” medals and precious memories from previous Games. “Don’t let clean athletes lose out on their moment in Pyeongchang to doping,” said Canadian biathlete Rosanna Crawford, in a video from the campaign, called #MyMoment. The Russians, meanwhile, are pushing back aggressively on all fronts. On Friday, Russian deputy prime minister and former minister of sport Vitaly Mutko said sport officials should look into doping in other nations. “I don’t understand why you have to trample Russia underfoot,” he said during the draw for the 2018 World Cup, which Russia will host. Still, Mutko said retesting doping control samples years after collection “will kill sports if we go this way.” Earlier in the week, Kremlin spokesman Dmitry Peskov said that doping allegations were part of an anti-Russian smear campaign, accusing the U.S. of ignoring Moscow’s own accusations against Rodchenkov. Calling Rodchenkov an “odious figure,” Peskov said the former head of Russia’s anti-doping center was accused in Russia of forcing others to dope Russian athletes, the news agency Interfax said. “Unfortunately, his protectors and harborers are neither paying attention nor demonstrating any interest,” Peskov said, Interfax reported. ADRIAN DENNIS/AGENCE FRANCE PRESSE/GETTY IMAGES co Fo m rp m e er rs ci on al a us l, e on The Russian team during the opening ceremony of the 2014 Sochi Olympics. A lawyer for Rodchenkov, Jim Walden, said “there is no way Mr. Rodchenkov could have done this by himself, the allegations lack credibility on its face. Russia is doing itself a disservice by denying this to the rest of the world.” The Kremlin spokesman said that Russia was doing everything it could to protect the interests of Russian athletes and overcome tensions over the doping scandal, Interfax said. The spokesman also repeated the Kremlin denial of any Russian government conspiracy to force athletes to take performance-enhancing drugs. In the event that the IOC prohibits Russian participation at the Pyeongchang Games, it would not be the first such national team suspension. Olympic officials have suspended teams from South Africa, North Korea, Rhodesia, Afghanistan, and India in previous years for a variety of sport and political reasons, and individual sports federations have suspended teams for rules violations, according to sport historians at OlympStats. n- THE INTERNATIONAL Olympic Committee will decide Tuesday whether to ban Russia from the 2018 Winter Olympics, the second time in as many years it has confronted the question of sanctioning Russian athletes because of the country’s alleged state-sponsored doping program. Yet despite being armed with more evidence than ever that Russia staged a massive doping fraud at the 2014 Sochi Games it hosted, it is far from clear whether the IOC will dispense harsh discipline. The IOC meeting in Lausanne, Switzerland, this week comes just two months ahead of February’s Winter Olympics in Pyeongchang, South Korea. The decision on Russia’s participation comes even as the organization continues to investigate a widespread Russian doping and cover-up scheme at the 2014 Olympics in Sochi. The IOC considered, but ultimately passed, on banning Russia prior to last summer’s Olympics in Rio de Janeiro. But unlike last year’s evaluation, based on investigations by the World Anti-Doping Agency and other sport officials, the IOC will this week also have the findings of its own inquiry of the Sochi allegations, chaired by former Swiss President Samuel Schmid. The report will be delivered to IOC members on Tuesday. It is unclear what, if any, recommendations the so-called Schmid report may offer. A separate IOC disciplinary commission, however, has investigated the alleged manipulation of drug testing samples in Sochi; through last week it has issued more than 20 lifetime bans for Russian athletes and revoked 11 Russian medals from the 2014 Games. The IOC disciplinary commission last week began the process of issuing more specific rationales for the discipline in each case. The only of those released so far involves the disqualification of Sochi cross-country skiing gold medalist Alexander Legkov. The committee wrote that it had independently confirmed evidence presented by whistleblower Grigory Rodchenkov, the former head of the Moscow anti-doping laboratory and the man responsible for carrying out the Sochi scheme. “After reviewing all aspects of the case, the Disciplinary Commission was convinced that Dr. Rodchenkov was telling the truth, for a large number of reasons,” the commission wrote, adding that, “ the ly . BY SARA GERMANO IN NEW YORK AND THOMAS GROVE IN MOSCOW no NEW YORK GIANTS FIRE MCADOO, REESE LESS THAN a year since making the playoffs, and six days after the widely panned benching of quarterback Eli Manning, the New York Giants moved to try to clean up the stunning mess that developed over the course of this season. The team that hasn’t fired a head coach mid-season in more than four decades did just that on Monday, sending Ben McAdoo out the door along with general manager Jerry Reese. The unusual timing of the decision for this team speaks to just how much, how quickly and how uncharacteristically everything fell apart. John Mara, whose family has owned the team since its founding, said it reached the point where he was embarrassed and had to act. “It was pointless to wait any longer,” Mara said. “We’ve kind of been spiraling out of control here. I just felt like we needed a complete overhaul.” In several respects, the sweeping change is a jarring turnaround for the Giants. Last year, in McAdoo’s first season, they went 11-5. They were expected to be a strong Super Bowl contender this year. But as the season quickly unraveled—they are 2-10 now—so did the franchise’s uncanny ability to project stability and calm. Not only was the team struggling on the field, but it became the focal point of the entire football world for the wrong type of reason when Manning, the quarter- back who won two Super Bowls for the team, wound up on the bench. Immediately, fans expressed their outrage online and on the radio. The anger wasn’t just that Manning, the face of the franchise for 15 years, was being treated unceremoniously in their eyes. It was that this team had lacked offensive ‘We’ve kind of been spiraling out of control here,’ Giants co-owner John Mara said. ELSA/GETTY IMAGES BY ANDREW BEATON Giants quarterback Eli Manning, left, on the sideline with head coach Ben McAdoo. McAdoo was fired on Monday. punch ever since McAdoo took over. It also had to do with Manning’s replacement, New York Jets castoff Geno Smith, not being a particularly inspiring substitute. As that Manning bombshell spread across the country, Mara was meeting with other owners on the NFL’s compensation committee at the league’s New York offices. Across the river, his proud franchise took its turn in the role that’s usually occupied by the team it shares its stadium with. The Giants were at the center of an embarrassing debacle. Last week, Mara said he had spoken with Reese about potentially giving other quarterbacks on the roster—Smith and rookie Davis Webb—a look with the team out of playoff contention. But giving Smith some snaps turned into a full-on benching of a team icon when Manning told McAdoo that it wasn’t fair to him or Smith to split snaps, and if they wanted to play Smith they should just start him, Mara said. That’s how the iconic quarterback with the longest active streak of consecutive starts found himself sitting out Sunday’s loss to the Raiders. Mara said last week he spoke to Manning and told him he “didn’t want him to go out like this.” A week after all of that unfolded, the face of the team’s woes, McAdoo, was ousted. The team that had just two coaches from 1997-2015, didn’t last two seasons with McAdoo. Just a few weeks prior, the team had said it would wait until after the season to make any potential changes. Mara said Tuesday that the Manning situation didn’t factor into the decisions, and that interim coach Steve Spagnuolo, who had been the defensive coordinator, will decide the quarterback going forward. But it isn’t just McAdoo who was relieved. It was the general manager too. Reese, who had been with the organization for more than two decades and its general manager since 2007, was also let go. He was general manager during both of the team’s Super Bowl wins and worked in the front office when Manning was drafted. Kevin Abrams, a long-time assistant general manager, is now the team’s interim general manager. Whoever the Giants tap to take over for the long haul will face no shortage of issues. Most notably, there’s the fate of Manning, who is 36 years old but still clearly a capable quarterback. But whether he still sees a future for himself in New York—or if the new boss still sees him as part of the Giants future— are still unanswered questions. That could also play into the draft, where the team will have one of the top picks and could have the chance to take a heralded quarterback prospect such as Southern California’s Sam Darnold or UCLA’s Josh Rosen. Then there are big questions about the rest of the roster. The Giants haven’t found a steady running back in years. The offensive line has been annually problematic. And the biggest question may have to do with the team’s best player—injured wide receiver Odell Beckham Jr.—who could demand the largest contract for a wide receiver, ever. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Tuesday, December 5, 2017 | A17 OPINION leaders such as Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan, among others. Then again, the remaining GOP support, including that of Alabama Gov. Kay Ivey and now President Donald Trump, may carry more pull. Mr. Moore further benefits from the backing of the evangelical community, many of whose pastors have stuck with him. But there’s another potent force in this race, which gets little media attention. These are the liberals who are enabling him. Let’s run through a short list: • Bill Clinton. Remember the argument “It was only sex”? Or reporter Nina Burleigh saying she’d be happy to give then-President Clinton oral sex “just to thank him for keeping abortion legal”? Some who backed Mr. Clinton now recognize that their unqualified support through all his lies and bad behavior leaves them in a poor position to lecture others about how to treat women, or why policy should not trump character. Now they are throwing Mr. Clinton under the bus to try to regain the moral high ground. How persuasive must Alabamans find this? • Doug Jones. He is the Democrat in the race. When your rival is credibly accused of sexual misbehavior with underage girls, the race is yours to lose. And yet Mr. Jones is doing his best to do just that, over a classic Democratic blind spot: abortion. Alabama is one of America’s most pro-life states. Mr. Jones might have expanded his appeal by opting for the Bill Clinton formula of “safe, legal and rare,” or supporting popular restrictions such as the ban after 20 weeks. Instead, Mr. Jones has opted for the Hillary Clinton view that abortion must be sacrosanct. If he ends up losing, abortion will be a big reason. If he wins, he can thank Al Franken and Jimmy Kimmel among others. • Al Franken. On the hypocrisy front there’s plenty on all sides to go around. Still, it has to be hard for Alabama Republicans not to notice that they are being called on to reject their guy at a time when Democrats are keeping theirs. • Jimmy Kimmel. Mr. Kimmel recently dispatched a comedian to heckle Mr. Moore at a rally at the Magnolia Springs Baptist Church. He succeeded in disrupting the event. Mr. Kimmel and Mr. Moore then got into a Twitter tiff after Mr. Moore suggested Mr. Kimmel put up his dukes, and Mr. Kimmel accepted. Mr. Kimmel and his audience have had some good yucks at the expense of the local yokels. But again, just a guess that this may not be playing as well in Alabama. • The national press corps. When Donald Trump tweets about “fake news,” the smart set groans. But just this weekend, ABC News suspended Brian Ross for reporting, falsely, that retired general Mike Flynn would testify Mr. Trump asked him to reach out to the Russians during the campaign, when it was in fact after he’d been elected president. At nearly the same time America learned that the top FBI agent on Robert Mueller’s team investigating Russian interference in the 2016 election had exchanged pro-Hillary/ anti-Trump texts with an FBI lawyer with whom he was having an extramarital affair. And then liberals wonder at a CBS poll finding that 71% of Alabama Republicans don’t believe the allegations against their candidate. They may well be wrong about Mr. Moore and his accusers, but is their skepticism really that difficult to understand? Now we are entering the final week of the race. Perhaps sensing a Moore victory, President Trump Monday morning offered an unconditional endorsement, tweeting that “we need Roy Moore to win.” But Mr. Trump’s endorsement hasn’t always been dispositive: Remember, Mr. Moore is the GOP’s candidate because Alabama Republicans in the primaries rejected the man the president endorsed. So if Mr. Moore does find himself Alabama’s newest senator next Tuesday night, it may be as much the fault of those who opposed him as those who supported him. Write to firstname.lastname@example.org. Trump Leads From Behind in Syria P John Kerry trusted Russia. The president should ask him how that worked out. the Russians to coordinate attacks in Syria—but the Russian onslaught against Aleppo in 2016 precluded its implementation. The Russians fulfilled none of their obligations, leading a frustrated Mr. Kerry to declare that Moscow and its allies have to decide whether “they are serious about implementing a United Nations Security Council resolution.” Russia’s actions since have only proved it is not serious about Resolution 2254. The Trump administration might think it will be different this time, because the de-escalation zone in southwest Syria has been working. The administration clearly hopes to broaden the de-escalation no resident Trump has made reversing his predecessor’s legacy a guiding principle, except in one area: Syria. Much like President Obama, Mr. Trump’s policy has been exclusively antiIslamic State, giving Iran and Russia a free hand to dictate outcomes in the country. This won’t end well. Mr. Trump apparently sees cooperation with the Russians as the best solution. On July 7, in Germany, Mr. Trump and Vladimir Putin announced a cease-fire in southwest Syria. On Nov. 11, in Vietnam, they issued a joint statement confirming “the importance of de-escalation areas as an interim step to reduce violence in Syria, enforce cease-fire agreements, facilitate unhindered humanitarian access, and set the conditions for the ultimate political solution to the conflict.” That ultimate political solution, they declared, should follow the guidelines set by United Nations Security Council Resolution 2254. This sounds great at first: The resolution, passed in December 2015, sets timelines for cease-fires, a new constitution and a transitional government. Yet Bashar Assad, employing sieges and starvation, has prevented the delivery of humanitarian assistance to his own people. This—along with his barrel bombs and political obstructionism—has prevented any progress in achieving the resolution’s goals. The Russians and Iranians have only enabled him. In November 2015, Secretary of State John Kerry reached an agreement on Syria with Russian Foreign Minister Sergei Lavrov. The agreed-to principles were incorporated in Resolution 2254 the following month. Later, Mr. Kerry would negotiate a joint operational center with n- By Dennis Ross zone and pursue a diplomatic solution. As Defense Secretary Jim Mattis explained in November, the U.S. can demilitarize the country area by area, until a diplomatic solution offers a way forward. While it would be good if this approach could work, the indicators aren’t positive. Take the de-escalation zones: The one in southwestern Syria has worked, but only because it freed up the Assad regime and its Iranian allies to attack the other so-called deescalation zones relentlessly. In one such area, Syrian regime cluster bombs have been hitting Eastern Ghouta, near Damascus. U.N. diplomat Jan Egeland has spoken of a “massive loss of civilian life” and declared that “there is only escalation in this de-escalation zone.” In a different zone, the town of Atarib was recently bombed, killing more than 50 civilians. Once the regime retakes these areas, it will surely turn its attention to southwestern Syria. Also worrying: The day after the presidential joint statement last month, Mr. Lavrov declared that the departure of foreign forces called for in the recently concluded memorandum of principles between the U.S., Russia and Jordan did not apply to the “Iranian or pro-Iranian forces.” Iran is also developing a front in Syria against Israel, with no sign of Russian opposition—despite talk of a buffer. During a recent visit to the Golan Heights, the local Israeli commander showed me a Quds Force-Hezbollah command post on a hill less than 4 miles away. Here is a conflict waiting to erupt. There is little chance of the Russians implementing a peace agreement in good faith so long as they see no cost for noncompliance. The Trump administration could alter Mr. Putin’s calculus—and make the diplomatic process more credible—by conveying quietly that if the Russians will not stop the Assad-Shia expansion into the de-escalation zones, the U.S. will. Boots on the ground wouldn’t be necessary. The U.S. already has air power in the region dwarfing what the Russians used to secure Assad and change the balance of power in Syria. Mr. Putin knows that. He wants Russia, not the U.S., to be seen as the arbiter of Syria’s future. If there are any doubts about this, consider his active diplomacy with Assad and the leaders of Iran and Turkey over the past few weeks. John Kerry eventually realized that words alone would not get Mr. Putin to respond in Syria. Time will tell whether the Trump administration has learned that lesson. Mr. Ross has held senior national security positions in several presidential administrations and is counselor at the Washington Institute. Listen to Women—Except . . . By Molly Gurdon S ince the Harvey Weinstein scandal broke, the feminist battle cry has been: “Listen to women.” Listen as they tell of sexism and abuse in the workplace. Listen as they accuse men who outrank them. This kind of openness and respect is overdue, but it comes with an asterisk: “Listen to women (unless they’re pro-life).” Last month, pro-life students at the University of Oxford held a discussion on Ireland’s 2018 abortion referendum. It was disrupted by protesters organized by the Women’s Campaign, a studentunion-sponsored group that claims it “advocates for the rights of everyone who identifies as a woman.” The protesters chanted abusive slogans— “pro-life, that’s a lie, you don’t care if women die”—for 40 minutes, preventing anyone else from being heard. Several organizers faced the protesters, holding makeshift Choosing Sides In a Battle Royal The White King By Leanda de Lisle (PublicAffairs, 401 pages, $30) R evolutions escape control and arrive at a destination that few who set them in motion either expected or desired. This was the case with the English Revolution of 1640-41. Intended to re-assert the rights of Parliament and curtail the power of the crown, it led to civil war and the trial and execution of the king, Charles I. In the subsequent republic (1649-60), Parliament itself, in its traditional form, would be abolished by the dictator Oliver Cromwell. Leanda de Lisle’s engaging biography of Charles I is titled “The White King,” a phrase that grew out of his decision to wear white rather than purple on his coronation day. The book’s subtitle—“Traitor, Murderer, Martyr”— points to the division of opinion Charles has always provoked. His enemies called him the “man of blood,” a biblical reference that threw the guilt for the Civil War on the king alone. At his trial in 1649 he was officially accused of being “tyrant, traitor, murderer.” But Charles’s defense of the established Church of England, threatened by Parliament’s rebellion, also made him a “martyr”; after the monarchy’s restoration in 1660, the revised Book of Common Prayer celebrated his martyrdom on Jan. 30, the anniversary of his execution. Charles had many virtues, and Ms. de Lisle does justice to them. He was a loving and faithful husband, a fond father, and a loyal friend. He was courageous, high-minded, intelligent, dignified. He had a strong paternalist sense of public duty. In a different age he might have been an exemplary constitutional monarch. Yet he lacked the common touch. He could not disarm criticism with a jest but took refuge in an icy silence. Many would look back on the 11 years during which he governed without Parliament (1629-40) as a golden time—a fair enough judgment given the civil war that followed. Yet they were years in which grievances festered. “There was,” Ms. de Lisle says, “anger at the loss of liberty represented by eleven years of personal rule and taxes raised without parliamentary consent. Charles had also given them”—that is, his opponents—“fresh reasons to fear a ‘popish’ CounterReformation conspiracy.” His wife, Henrietta Maria, was a Roman Catholic, and Catholics flocked around her in defiance of anti-Catholic laws. Moreover the king’s foreign policy— nonintervention in the religious wars in Germany and friendship with Catholic Spain—was unpopular with those who feared the defeat of the German Protestant states and who regarded Spain as England’s rival in the New World. Yet Charles might have governed largely untroubled if he had been king only of England. But he was also king of Scotland and of Ireland, and it was events in these kingdoms that gave his English enemies their opportunity. First, he provoked the Scots, threatening the nobility with the restitution of church lands seized more than a half-century before. Then, seeking to impose a uniformity of religious practice throughout his dominions, he threatened the autonomy of the Presbyterian Kirk. The result was defiance and armed rebellion. co Fo m rp m e er rs ci on al a us l, e on When Alabamans go to the polls a week from now in a special election to choose their MAIN next senator, STREET not even Mrs. By William Roy Moore McGurn will be rooting as hard for her Republican husband as the junior senator from Minnesota, Al Franken. The reason is simple. Mr. Franken knows that if Mr. Moore takes his Senate seat, it becomes less likely the former “Saturday Night Live” comic will have to relinquish his. And therein lies a larger tale about how the liberal opposition to Mr. Moore may be backfiring. Until this race, plausible accusations that a candidate had engaged in sexual conduct with girls as young as 14 would be enough to sink most any man. Coming as these charges do amid a national sexual reckoning that has already brought down many powerful men hitherto thought untouchable, they ought to be even more potent. But Mr. Moore is not sinking. To the contrary, at last check the Real Clear Politics polling average gives him a 2.6-point lead. A CBS News poll released this past weekend has him up by 6 points. If Mr. Moore does win, it will be despite calls by Republicans and conservatives for him to step aside. The calls have come from Republican BOOKSHELF | By Allan Massie ly . Roy Moore’s Liberal Enablers signs that read: “I’m a woman, where is my right to speak?” It’s a good question. If women of childbearing age aren’t allowed to question the ethics of abortion without being bullied and humiliated, who is? Feminists try to shout down even female critics of abortion. “Bodily autonomy is not up for debate,” the Women’s Campaign said in a statement after the protest. But the claim that abortion is a closed question just isn’t true. Philosophical, legal and scientific discussion of it dates to ancient Egypt and ancient Greece. Within the university, no issue of moral importance should be shielded from examination. Abusing women who try to have such conversations gives the lie to any stated commitment to female empowerment. Yet pro-life women across the West routinely face these kinds of tactics. Earlier this year the pro-life New Wave Feminists were booted as partners in the Women’s March on Washington. In October, Katie Ascough, the president of the student union at University College Dublin, was impeached after removing from a student handbook a page of abortion information that she says was illegal under Irish law. Two months ago, Rachael Harder, a pro-life member of Canada’s Parliament, was blocked from leading the Status of Women Committee. Apparently positions of power are open only to the right kind of women. This intolerance should worry anyone who cares about the future of feminism. When defenders of abortion harass and silence their ideological opponents, they lose not only the moral high ground but also the opportunity to persuade. If they’re confident in the moral and intellectual superiority of their position, what’s so distressing about another woman who wants to think about it for herself? Some pro-choice activists agree, such as Ann Furedi, CEO of (in her words) “the unapologetic abortion provider, the British Pregnancy Advisory Service.” In 2014 Ms. Furedi saw pro-choice students trying to stop people from attending an abortion debate in Cambridge. “When you try to silence someone,” she wrote, “you simply tell the world that you fear what they might say.” It’s dishonest to call for society to “listen to women” while shouting down those with different views. Pro-life women represent a variety of backgrounds and experiences. They deserve better than to be censored, insulted and bullied out of jobs. So yes, listen to women—even ones with whom you disagree. Ms. Gurdon is a former president of Oxford Students for Life. Charles I was courageous and intelligent but lacked the common touch. His reign ended in rebellion, civil war and his own execution. To finance a war against the rebel Scots, Charles was compelled, at last, to summon a Parliament. The opposition followed a practice familiar since the Middle Ages: no funds without redress of grievances. The parliamentary leaders proceeded to dismantle the instruments of state that Charles had inherited from Tudor despotism. Soon after, the king’s most capable minister, the Earl of Strafford, was charged with treason and sentenced to death. Charles reluctantly consented to his execution as angry crowds besieged Whitehall uttering threats against the Catholic queen. The Revolution had achieved its aims—reducing the king’s power and restoring Parliament’s—but the unity of the parliamentarians began to crumble, and a Catholic rebellion broke out in Ireland. It must be suppressed, but who should command the army? The opposition would not trust the king with it; and he would not surrender command. Attempting to break the impasse, Charles invaded the House of Commons seeking to arrest five leaders of the opposition. Forewarned, they had fled. Charles left his hostile capital. England was on the brink of civil war. Ms. de Lisle’s account of the Revolution and the war is excellent—clear, fair, sympathetic and detailed. She makes the point early on that, contrary to what one might expect, more than a third of the members of the House of Commons adhered to the king. The royalists needed an early victory and nearly secured it, but the longer the war lasted, the more the advantage lay with the king’s enemies. They controlled London and the treasury. The navy on which Charles had lavished so much money deserted him. Then, in 1643, the parliamentarians made a decisive military alliance with the Scots, based on a promise to establish Presbyterianism in both kingdoms (a promise they could not keep). The war ended in complete defeat for Charles. Yet he was still king and for three years negotiated with the victors. Several times a compromise peace seemed possible. Yet there were points on which he would not yield, and when he was found to have encouraged a resumption of hostilities—the short-lived Second Civil War of 1648—the parliamentary leaders decided to put him on trial for his life. “Until the last day of his trial he hoped he could yet strike a deal,” Ms. de Lisle writes. “He had always underestimated the ruthlessness of his enemies.” She tells his story fairly and sympathetically while not glossing over Charles’s weaknesses. Though she subscribes to the judgment of Archbishop Laud that Charles was “a mild and gracious prince who knew not how to be, or be made great,” she grants him the stature of a tragic hero. As for the victors in 1649, “Parliament had by then become a monster that devoured its own,” Ms. de Lisle writes. The irony is that the legal basis of the Restoration in 1660, when Charles’s eldest son returned as king, was legislation from 20 years before aimed at guiding England toward a parliamentary monarchy. The Civil War had been as unnecessary as it was cruel. Mr. Massie is the author of “The Royal Stuarts: A History of the Family That Shaped Britain.” For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. A18 | Tuesday, December 5, 2017 OPINION LETTERS TO THE EDITOR Mueller’s Credibility Problem Education Loans Should Teach Responsibility T Supreme Rebuke for the Judiciary law. The Supreme Court had already intervened once to rebuke the lower courts over Mr. Trump’s initial travel ban, but judges ignored the warning and kept overturning modified versions with injunctions that blocked their implementation even before considering the merits. Yet the executive has considerable latitude on immigration and national security, as the Justices seem to recognize. We don’t think the travel ban is wise or necessary policy, but opposition to a policy is not justification for judges to ignore the law. no n- he Supreme Court almost never intervenes in a case that appellate courts are still considering, but on Monday it did precisely that to allow President Trump’s third travel ban to take effect. The 7-2 order granted the Administration’s request to block the stay of the ban that had been issued by judges in Hawaii and Maryland. The Fourth and Ninth Circuit Courts of Appeal had refused to block the stay, and the Supremes intervened to grant it after the Administration appealed. This is an important moment for the rule of L “GOP Seeks Major Changes for Colleges” (U.S. News, Nov. 30) asserts that congressional Democrats believe that the best way to help students is to provide them more direct subsidies and then let them pay off what they can afford for a set time, then forgive the balances. As a current graduate student, I understand the heavy burden of paying back student loans. However, forgiving student loans fails to prepare students for a realistic financial future. I am attending graduate school because I want to increase my future earning potential, and that comes with responsibility to pay for that education. I’m making the sacrifice to take a loan now so that I can still invest on the side, while also paying my day-to-day bills. Asking students to pay back only “what they can afford for a set time” discourages students from doing whatever they can to make their payments. Additionally, simply forgiving a loan isn’t how the real world works. I can’t just make minimum payments on my mortgage for a set time and then be forgiven the loan after a number of years. We’re sending the wrong message to students by allowing debt forgiveness on student loans. STEPHANIE TURO Alexandria, Va. I have a suggestion for an addition to the higher-education bill: an option to allow companies to offer a student-loan payment match as an alternative to the 401(k) match. Companies that have already committed to match 401(k) contributions wouldn’t be out additional funds. Students would be able to pay off their loans at a faster pace, and the government (as guarantor of many student loans) would benefit as well. Students who are working and paying student loans often can’t afford to also contribute to retirement accounts. Let this country be smart about student loans and have companies contribute. After all, they are the ones benefiting from the education the students received. Companies that are early adopters would also gain a fantastic benefit for recruiting new employees. K.C. MORRISON Fogelsville, Pa. Navigating by Sight and Not by Electronics A.P.D.G. Everett and Alex Berezow assert that “the most likely threat” to U.S. GPS satellites comes from a possible Russian or North Korean EMP attack in space (“If GPS Failed, We’d Be More Than Lost,” op-ed, Nov. 27). However, any such attack would be indiscriminate, causing the same harmful effects to Russia’s Glonass and China’s BeiDou positioning, navigation and timing systems. Such a nuclear explosion could also kill Russian cosmonauts on the international space station and Chinese on the Tiangong-2 station, if occupied at the time. These factors suggest that such an EMP attack is probably the least likely adversary tool for degrading the U.S. GPS system. Signal spoofing and regional-area jamming are far more likely and, fortunately, much less harmful adversary countermeasures. PROF. CLAY MOLTZ Naval Postgraduate School Monterey, Calif. In early 1983, when I was navigator aboard a Coast Guard cutter, our ship was diverted to the deep southern Caribbean. GPS wasn’t yet available, and both Loran and Omega systems were unreliable south of the Greater Antilles. No nearby islands either. So it was back to the sextant and the sun and stars for a week. We had to rendezvous with another ship at a specific point. That ship, relying on electronic signals only, wound up 66 miles from the agreed position. We had ascertained by a four-star sight reduction that we were in the proper place. Captain Cook would have smiled. Today most of us technologically subservient moderns get around by looking at an electronic display or listening to an anonymous voice in a box. There will come a reckoning. RAYMOND J. BROWN, CAPT. USCG (RET.) Londonderry, N.H. co Fo m rp m e er rs ci on al a us l, e on onald Trump is his own worst enemy, FBI investigation. The public has a right to know as his many ill-advised tweets on the whether the Steele dossier inspired the Comey weekend about Michael Flynn, the FBI probe, and whether it led to intrusive governand Robert Mueller’s Russia ment eavesdropping on camThe special counsel is paign satellites such as Carter probe demonstrate. But that doesn’t mean that Mr. Mueller stonewalling Congress Page. and the Federal Bureau of InAll of this reinforces our and protecting the FBI. doubts about Mr. Mueller’s vestigation deserve a pass about their motives and methability to conduct a fair and ods, as new information raises credible probe of the FBI’s troubling questions. considerable part in the Russia-Trump drama. The Washington Post and the New York Mr. Mueller ran the bureau for 12 years and is Times reported Saturday that a lead FBI investi- fast friends with Mr. Comey, whose firing by Mr. gator on the Mueller probe, Peter Strzok, was Trump triggered his appointment as special demoted this summer after it was discovered counsel. The reluctance to cooperate with a conhe’d sent anti-Trump texts to a mistress. As gressional inquiry compounds doubts related to troubling, Mr. Mueller and the Justice Depart- this clear conflict of interest. i i i ment kept this information from House investiMr. Mueller’s media protectorate argues that gators, despite Intelligence Committee subpoenas that would have exposed those texts. They anyone critical of the special counsel is trying also refused to answer questions about Mr. to cover for Mr. Trump. But the alleged TrumpStrzok’s dismissal and refused to make him Russia ties are the subject of numerous probes— Mr. Mueller’s, and those of various committees available for an interview. The news about Mr. Strzok leaked only when in the House and Senate. If there is any evidence the Justice Department concluded it couldn’t of collusion, Democrats and Mr. Mueller’s agents hold out any longer, and the stories were full of will make sure it is spread far and wide. Yet none of this means the public shouldn’t spin that praised Mr. Mueller for acting “swiftly” to remove the agent. Only after these also know if, and how, America’s most powerful stories ran did Justice agree on Saturday to law-enforcement agency was influenced by Russia or partisan U.S. actors. All the more so given make Mr. Strzok available to the House. This is all the more notable because Mr. Mr. Comey’s extraordinary intervention in the Strzok was a chief lieutenant to former FBI Di- 2016 campaign, which Mrs. Clinton keeps saying rector James Comey and played a lead role in- turned the election against her. The history of vestigating alleged coordination between the the FBI is hardly without taint. Deputy Attorney General Rod Rosenstein, Trump campaign and Russia during the 2016 election. Mr. Mueller then gave him a top role who appointed Mr. Mueller, is also playing an in his special-counsel probe. And before all this increasingly questionable role in resisting conMr. Strzok led the investigation into Hillary gressional oversight. Justice has floated multiClinton’s emails and sat in on the interview she ple reasons for ignoring House subpoenas, none gave to the FBI shortly before Mr. Comey pub- of them persuasive. First it claimed cooperation would hurt the licly exonerated her in violation of Justice DeMueller probe, but his prosecutions are propartment practice. Oh, and the woman with whom he suppos- ceeding apace. Then Justice claimed that proedly exchanged anti-Trump texts, FBI lawyer viding House investigators with classified mateLisa Page, worked for both Mr. Mueller and dep- rial could hurt security or sources. But House uty FBI director Andrew McCabe, who was ac- Intelligence Chairman Devin Nunes has as broad cused of a conflict of interest in the Clinton a security clearance as nearly anyone in governprobe when it came out that Clinton allies had ment. Recently Justice said it can’t interfere donated to the political campaign of Mr. Mc- with a probe by the Justice Department InspecCabe’s wife. The texts haven’t been publicly re- tor General—as if an IG trumps congressional leased, but it’s fair to assume their anti-Trump oversight. Mr. Nunes is understandably furious at the bias must be clear for Mr. Mueller to reassign Strzok news, on top of the other stonewalling. such a senior agent. There is no justification for withholding all He asked Justice to meet the rest of his commitof this from Congress, which is also investigat- tee’s demands by close of business Monday, and ing Russian influence and has constitutional if it refuses Congress needs to pursue contempt oversight authority. Justice and the FBI have citations against Mr. Rosenstein and new FBI Dicontinued to defy legal subpoenas for docu- rector Christopher Wray. The latest news supports our view that Mr. ments pertaining to both surveillance warrants and the infamous Steele dossier that was fi- Mueller is too conflicted to investigate the FBI nanced by the Clinton campaign and relied on and should step down in favor of someone more credible. The investigation would surely conanonymous Russian sources. While there is no evidence so far of Trump- tinue, though perhaps with someone who doesn’t Russia collusion, House investigators have think his job includes protecting the FBI and Mr. turned up enough material to suggest that anti- Comey from answering questions about their Trump motives may have driven Mr. Comey’s role in the 2016 election. ly . D REVIEW & OUTLOOK The Trial Bar’s Tax Break indsey Graham appears to work for the the Ninth Circuit, reinforcing that gross-fee trial bar on political retainer, and last contracts are structured “to provide the attorweek the South Carolina Republican ney with a percentage of recovery sufficient stripped the Senate tax bill of to cover advanced expenses.” Lindsey Graham a provision that eliminated a No other circuit has adopted contingency-fee carve-out for the Ninth’s opinion, and preserves a carve-out plaintiff attorneys on the other tax courts have susfor his plaintiff pals. West Coast. tained the IRS position. The IRS has long held that The Ninth Circuit’s tax dislegal expenses incurred by pensation subsidizes litigaattorneys in contingency-fee lawsuits are tion and can reduce legal costs by up to 40%. loans and thus not deductible. Attorneys front Plaintiff attorneys are more likely to file dubithe costs for depositions, expert witnesses ous lawsuits—and drag out cases—when they and discovery in expectation that they’ll re- can immediately deduct expenses. Democrats coup their expenses when cases settle or their unsuccessfully sought to extend the Ninth Circlients win. On the rare occasion with no re- cuit’s contingency-fee tax break nationwide in covery, attorneys may deduct expenses as they 2008 with legislation and later petitioned the would a bad loan. Obama IRS to do so by fiat. But businesses Tax courts have consistently upheld this in- howled, so the plaintiff attorney carve-out is terpretation, as have federal appellate courts still limited to Ninth Circuit states. dating to the 1930s. But in 1995 the Ninth CirThe House tax bill includes a provision cuit Court of Appeals indulged a creative Cali- that would codify the IRS’s interpretation of fornia lawyer who sought to reduce his tax bill advanced fees as loans, which would create by drawing a dubious distinction between con- parity throughout the U.S. and yield $500 tingency net-fee and gross-fee lawsuits. million in revenues over the next decade. In net-fee arrangements, attorneys are first While the original Senate bill included a simireimbursed for their expenses from their cli- lar provision, Mr. Graham pulled some strings ent’s recovery and then receive a share of the and got it removed in the final manager’s remainder. Gross-fee contracts merely entitle amendment. attorneys to a percentage of the recovery, A spokesperson for Mr. Graham says that which is supposed to cover litigation expenses. “disallowing a deduction for those expenses This is a distinction without a legal or pecuni- disincentivizes equal access to justice for those ary difference since both arrangements allow of limited financial means.” Does the Senator attorneys to recoup expenses. really believe that individuals in Florida or The Ninth Circuit in Boccardo v. Commis- New York have less access to the justice system sioner of Internal Revenue (1995) broke with than they do in California and Hawaii? precedent and allowed attorneys to immediThe House-Senate tax conference commitately deduct expenses they incur in gross-fee, tee should adopt the House provision, which but not net-fee, contingency contracts. But the is likely to be the most significant tort reform IRS instructed staff to apply Boccardo only in that Republicans pass this Congress. Trump’s Foreign Policy Isn’t a Huge Change In “The Peril of Trump’s Populist Foreign Policy” (op-ed, Nov. 29), Robert B. Zoellick raises the alarm on President Trump’s foreign policy. Where was this article during the past nine years? Mr. Zoellick says that Mr. Trump is breaking with postwar presidents of both parties dating back to Harry Truman. Was President Obama’s further destabilization of the Middle East and the measures taken to strengthen Iran in keeping with U.S. policy? Was the Syrian crisis, which resulted in the largest mass migration since World War II in America Is Right to Exploit Its Energy for Diplomacy Regarding your editorial “America’s New Energy Diplomacy” (Nov. 28): Finally, after years of President Obama’a delays in authorizing the export of natural gas, we are seeing fruit. Not unlike the Keystone pipeline for liquids, natural gas is a cleaner and safer alternative to other fossil-fuel choices, e.g., coal. The real irony of this story lies in the fact that Europe, including Poland, has shale reserves. For a variety of reasons, primarily bureaucratic, shale fracturing isn’t a reality. This is good for the U.S. and bad for Europe and Russia. Editorials like this need to be read from the perspective of comparative economics and business. Poland doesn’t want to buy Russian gas. Poland has shale natural-gas reserves. Poland can’t figure out how to produce its own gas. Thus Poland purchases gas from the U.S. What a great country America is. STEVE SZYMCZAK Spring, Texas Ignorance Is Not an Excuse Regarding Daniel Brady’s Nov. 25 letter about Brady orders: How in a country whose citizens are held to a standard of “ignorance of the law is no excuse,” with a legal code running to the hundreds of thousands of criminal laws, do prosecutors—officers of the court—get a pass because a judge didn’t remind them of the law about turning over exculpatory evidence to the defense at the beginning of a trial? JARED GORDON New York Letters intended for publication should be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, or emailed to email@example.com. Please include your city and state. All letters are subject to editing, and unpublished letters can be neither acknowledged nor returned. which Mr. Obama threatened but abdicated a U.S. role, in keeping with previous presidential policy? Mr. Zoellick seems to believe that other countries can no longer rely on American leadership since the election of Donald Trump. I suppose North Korea has only been a concern for U.S. foreign policy for the past year? JOE HODGE, CAPT. USN (RET.) Pensacola, Fla. Mr. Zoellick’s ridicule of President Trump’s foreign policy misses one point: The train of American world leadership has left the station and is not coming back. The world has changed. It is multipolar and nuclear. It has no precedent. Balance of power will not work. Pope Francis offers an alternative. Donald Trump has chosen personal ties with heads of state instead. JOSEF BURGER Wausau, Wis. Maybe the Lesson From U.K. Politics Is a Different One Joseph C. Sternberg argues that “expanding the [economic] pie is the only fail-safe way to ensure everyone gets a bigger piece (“Theresa May’s Warning for the Republican Party,” Political Economies, Nov. 24). Is it? Perhaps the reason people are turning to politicians like Bernie Sanders and Jeremy Corbyn is that the pie has been expanding, but nearly all the gains are swallowed by the very wealthy. Income inequality is at its worst since the Gilded Age. Growing the pie isn’t the problem; sharing the pieces is. BART BROOKS Hoboken, N.J. Pepper ... And Salt THE WALL STREET JOURNAL “Is there anything at the hardware store you’d like for Christmas?” For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Tuesday, December 5, 2017 | A19 OPINION To Spur Homeownership, Stop Subsidizing It second homes. In conference, House negotiators should push their Senate counterparts to adopt the lower threshold. How would the House’s approach affect the housing supply? In three ways. First, the stock of second homes totals some six million units; eliminating the interest subsidy on second homes would cause demand for the existing stock to decrease. Most second homes could also be used as a primary residence, either of the tax code provides other important benefits. The percentage of mortgage holders who itemize would drop from about 60% to 12%. This would free nearly half of mortgaged homeowners from a massive federal tax incentive hanging over their financial decisions, thereby greatly reducing the market-distorting impact produced by the interest deduction. Moreover, the cost per square foot of financing expensive houses would rise as big mortgages lose their tax subsidy. Some households that might otherwise buy such homes will buy cheaper or smaller homes instead, thereby reducing the capital allocation distortion of the subsidy. Others will borrow less to buy their home, reducing the inflationary impact of leverage on home prices. The doubling of the standard deduction (this is in the Senate bill, too) will have a similar effect on financing homes in the $150,000 to $400,000 range. More buyers in this price range will take the larger standard deduction instead of deducting their mortgage interest. The reduction in the tax subsidy for these homes will once again lead some households to consider smaller or cheaper options, or else borrow less, with the same benefits noted above. Religious Freedom Is for Christians, Too C an the government in America force a Christian baker to design a cake celebrating a same-sex wedding? That’s the question before the U.S. Supreme Court Tuesday. The dispute in Masterpiece Cakeshop v. Colorado Civil Rights Commission comes on the heels of two other high-profile religiousfreedom cases involving Christians— Burwell v. Hobby Lobby (2014), in which the court said a business couldn’t be forced to pay for contraception in violation of its owners’ religious beliefs, and Zubik v. Burwell, which effectively said the same thing about religious nonprofits, including the Roman Catholic order Little Sisters of the Poor. Why Hindus, Muslims, Native Americans and other minorities root for Masterpiece Cakeshop. no This cluster of Christian cases has prompted critics on the left to claim we’ve entered a new phase in the pursuit of “religious freedom”—scare quotes required. Gone are the days when religious freedom was primarily a shield for protecting Jews, Hindus, Muslims, Native Americans and other religious minorities. Now, these critics claim, “religious freedom” is a sword for imposing Christian values, particularly on matters of sex. A new study that Rachel Busick and I conducted demonstrates that the truth is precisely the opposite. We examine a comprehensive database of more than 10,000 federal cases decided in the past five years. We look at how many religious freedom cases are in court, who is bringing them, and how often they win. The results are striking. First, religious-freedom cases are rare, only 1% of all cases in federal court. Half of those involve inmates challenging prison policies or asylum seekers claiming religious persecution at home. Religious-freedom cases involving nonincarcerated citizens are less than 0.5% of federal cases. Successful religious freedom claims are even rarer. Many claims are dismissed on procedural grounds before a ruling on the merits of the claim. Of those that remain, the majority still lose. The 10th U.S. Circuit Court of Appeals decided both the Hobby Lobby and Little Sisters of the Poor cases before the justices took them up. The 10th Circuit decided more than 10,000 cases in the past five years. Aside from those regarding the contraception-mandate, there were only four victorious claims of religious freedom. None of them involved Christian issues. The four victories were for Muslims challenging an anti-Shariah law, Native Americans challenging a ban on killing eagles, reality TV stars challenging a ban on polygamy and atheists challenging a Ten Commandments monument. Most strikingly, a disproportionate share of religious freedom cases are brought by non-Christian minorities. The proportion of religious-freedom cases brought by Hindus was five times their share of the population in the six states under 10th Circuit jurisdiction. The factor was 10 for Native Americans and 17 for Muslims. The most underrepresented group? Christians, who were involved in only one-fourth as many cases as their share of the population. That means that religious freedom protections remain especially important for non-Christian minorities. But it also raises a question: Why is there so much hand-wringing about a handful of religious-liberty cases brought by Christians? This is because the political left applies a double standard. If religious liberty is invoked by a favored minority, it is legitimate. But if it is invoked by a Christian with traditional moral views, it is seen as an excuse for hate. Progressives engage in culture-war bullying when religious liberty would stand in the way of their social views. One of the Colorado state commissioners in Masterpiece Cakeshop called the Christian baker’s religious-freedom claim “one of the most despicable pieces of rhetoric n- By Luke W. Goodrich PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Rupert Murdoch Robert Thomson Executive Chairman, News Corp Chief Executive Officer, News Corp Gerard Baker Editor in Chief Matthew J. Murray Executive Editor Karen Miller Pensiero Managing Editor Jason Anders, Chief News Editor; Thorold Barker, Europe; Elena Cherney, Coverage Planning; Andrew Dowell, Asia; Neal Lipschutz, Standards; Meg Marco, Digital Content Strategy; Alex Martin, Writing; Mike Miller, Features & Weekend; Christopher Moran, Video; Shazna Nessa, Visuals; Rajiv Pant, Technology; Ann Podd, News Production; Matthew Rose, Enterprise; Michael Siconolfi, Investigations; Nikki Waller, Live Journalism; Stephen Wisnefski, Professional News; Carla Zanoni, Audience & Analytics Paul A. Gigot, Editor of the Editorial Page; Daniel Henninger, Deputy Editor, Editorial Page WALL STREET JOURNAL MANAGEMENT: Suzi Watford, Marketing and Circulation; Joseph B. Vincent, Operations; Larry L. Hoffman, Production EDITORIAL AND CORPORATE HEADQUARTERS: 1211 Avenue of the Americas, New York, N.Y., 10036 Telephone 1-800-DOWJONES Lower prices due to loss of subsidies will ultimately allow more low-wealth Americans to become homeowners, since less cash will be needed to close a purchase. Rents will remain roughly constant as house prices decline, thus reducing the cost of homeownership compared with renting— another positive outcome. Recent research by economists from the Federal Reserve and American University found that the combined impact of these effects would cause prices to fall and homeownership rates to rise. As an added bonus, reducing the subsidization of mortgage debt would reduce the need for taxpayer-backed mortgage debt. In 2016 about one-third of Fannie and Freddie’s business involved mortgages greater than $500,000, second homes, or cashing out home equity. The same is true of one-sixth of the Federal Housing Administration’s business. These activities could likely be scaled back. Importantly, the resulting shrinkage in the $6.7 trillion pool of outstanding government-guaranteed mortgage debt will lead to lower Treasury rates as competition with Treasury debt is reduced. Mortgage interest rates will also go down, as Treasury rates and mortgage rates are highly correlated. Finally, the reduction in subsidies could result in lower overall mortgage leverage and slower growth in home prices and therefore result in greater financial stability. Now is a particularly good time to make this change. According to the National Association of Realtors, existing home sales have been in a seller’s market for 62 straight months. This is true even at the higher price end of the home market. It is time to put the interests of taxpayers and aspiring homeowners ahead of the interests of the housing lobby. Tax reform—especially if the final bill fully implements the House’s subsidy cuts—will improve the housing market and make homeownership more accessible to all. ly . The House tax bill would create about 870,000 newly available housing units over the next decade. DAVID GOTHARD T ax reform could make housing more affordable. Done correctly, it could increase the supply of homes by reducing federal tax subsidies for homeownership. The House’s Tax Cuts and Jobs Act furthers this aim in several ways—by raising the standard deduction, capping new loans qualifying for the mortgage-interest deduction at $500,000, eliminating the deduction on loans for second homes and the deduction on cashing out home equity, and capping the property-tax deduction at $10,000. The Senate’s version contains some of these provisions, but it leaves the mortgage-interest deduction intact at $1 million and retains tax deductibility for mortgages on for a new buyer or as a primary home for the current owner after retirement. A conservative estimate is that over 10 years 600,000 second homes, or 10% of this stock, will convert to use by a primary resident. Second, demand for newly built second homes would decrease. I estimate that second homes constitute about 62,000 units annually, or 10% of newhome construction. If demand were reduced by 25%, or 15,000 units, builders, in an effort to maintain volume, would choose instead to build more homes targeted for primary occupancy. That represents another 150,000 units added to supply over 10 years. Third, the demand for newly built homes costing between $625,000 and $1.25 million would go down, since mortgage interest would no longer be fully deductible (assuming the standard 20% down payment). In the past year an estimated 50,000 such homes have been built. If annual demand were reduced by 25%, or 12,000 units, builders would likely choose to replace these with less expensive homes, adding another 120,000 lower-cost units to the housing supply over 10 years. In total, it is reasonable to forecast that the House tax bill would create about 870,000 additional available units over 10 years. This represents a boost of 14% (the current build rate will yield about 6.2 million units over 10 years). Cutting homeowner subsidies out co Fo m rp m e er rs ci on al a us l, e on By Edward Pinto William Lewis Chief Executive Officer and Publisher DOW JONES MANAGEMENT: Mark Musgrave, Chief People Officer; Edward Roussel, Innovation & Communications; Anna Sedgley, Chief Operating Officer; Katie Vanneck-Smith, President OPERATING EXECUTIVES: Ramin Beheshti, Product & Technology; Jason P. Conti, General Counsel; Frank Filippo, Print Products & Services; Steve Grycuk, Customer Service; Kristin Heitmann, Transformation; Nancy McNeill, Advertising & Corporate Sales; Christina Van Tassell, Chief Financial Officer; Jonathan Wright, International DJ Media Group: Almar Latour, Publisher; Kenneth Breen, Commercial Professional Information Business: Christopher Lloyd, Head; Ingrid Verschuren, Deputy Head that people can use—to use their religion to hurt others.” But if religious liberty means anything, it means the right to live according to your beliefs when most people think you are wrong. So when Jack Phillips, the owner of Masterpiece Cakeshop, stands before the Supreme Court Tuesday, he may have some unlikely allies rooting for him: non-Christian religious minorities. Those groups know better than anyone that religious liberty protects the “right to be wrong.” They have been the main beneficiaries of religious liberty victories in the past, and they will be in the future. You might say a victory for Masterpiece Cakeshop would be a victory for everyone. Mr. Goodrich is deputy general counsel at the Becket Fund and represented Hobby Lobby and the Little Sisters of the Poor. He is a co-author of a new study, “Sex, Drugs, and Eagle Feathers: An Empirical Study of Federal Religious Freedom Cases.” 60 YEARS OF ADVENTURE AND DISCOVERY Mr. Pinto is a co-director of the American Enterprise Institute’s Center on Housing Markets and Finance. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. A20 | Tuesday, December 5, 2017 Mobile security made for the way people really work. Humans will be humans. Naturally they’ll want to work from the nearest unsecure coffee shop wiﬁ they can ﬁnd. But don’t worry. We’ve built no n- co Fo m rp m e er rs ci on al a us l, e on Defense-grade security for an open world. ly . mobile security from the chip up, to make things easier for you. Because why attempt to change your employees’ behavior, when you can simply change their mobile security? VPN conﬁguration required. Samsung Knox solutions utilizing VPN conﬁguration sold separately. samsung.com/samsungknox For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. TECHNOLOGY: APPLE APP DELVES INTO MATTERS OF THE HEART B5 BUSINESS & FINANCE S&P 2639.44 g 0.11% S&P FIN À 1.55% * * * * S&P IT g 1.93% THE WALL STREET JOURNAL. DJ TRANS À 1.79% WSJ $ IDX À 0.16% Tuesday, December 5, 2017 | B1 LIBOR 3M 1.508 CVS Deal Is Leap of Faith Aetna tie-up creates health company not built around key cost gatekeepers: doctors BY ANNA WILDE MATHEWS AND SHARON TERLEP CVS Health Corp. and Aetna Inc. are attempting to create something with little precedent: an integrated health-care enterprise that isn’t built around doctors. The combination of the two companies, in a deal valued at $69 billion and announced Sun- day, is supposed to bring together Aetna’s patient data and CVS’s sprawling network of nearly 10,000 brick-and-mortar sites to squeeze out costs while improving care and convenience. But no major health-care company has tried to build a vertical system around the combination of drugstores, insurance and pharmacy-benefit management, the main businesses of CVS and Aetna, experts said. The merged company will lack a strong foundation of its own doctors, who make many of the decisions that influence both costs and quality of care. CVS Chief Executive Larry J. Merlo said Monday that the company will consider adding its own physicians, and it will coordinate closely with patients’ existing doctors to fill gaps in their care. “Everything that we’re talking about is a complement to the care that is provided for by the physician,” Mr. Merlo said Monday in a call with analysts. Creating the new setup will be a heavy lift operationally, according to experts including managed-care veterans. A company doesn’t have to own every part of the health-care food NIKKEI (Midday) 22611.61 g 0.42% Warnings The SEC has raised concerns over initial coin offerings as monthly ICO proceeds build. chain to achieve gains from vertical integration, said George Halvorson, former chief executive of Kaiser Permanente, the large insurer and health-care provider. But, he said, “the question is implementation.” For instance, he said, information such as prescription renewals and test results needs to flow easily to all of those who help care for a patient, including doctors. Other vertical operators in health care have taken a different path. Major Aetna competitor UnitedHealth Group Inc. owns a growing roster of docPlease see CVS page B2 $800 million 3 2 1 600 400 200 0 J F M 1 A M European startups have less ﬁnancing available, and from smaller funds, than their U.S. counterparts do. U.S. Venture-capital funds raised €40 billion July 25 Warns that some coin deals may be securities Sept. 25 Forms cyber unit for digital currencies and ICOs The Securities and Exchange Commission on Monday announced its first-ever enforcement action by its new cyber unit against an initial coin offering, alleging a Canadian company violated U.S. securities laws in raising $15 million through this new, redhot area of finance. Charges against the company, described by the agency as a “scam” run by a “recidivist Canadian securities law violator,” were brought by the unit as it looks to crack down on potential abuse in the cryptocurrency arena. The SEC alleged that PlexCorps violated securities laws by marketing and selling up to $15 million worth of cryptocurrencies, also called PlexCoins, to investors in the U.S. and elsewhere. The commission also charged Dominic Lacroix and Sabrina Paradis-Royer, the company’s founders, in connection with the sale. The SEC said it had obtained an emergency court order to freeze the assets of PlexCorps and the two individuals. In July, the Financial Markets Administrative Tribunal of Quebec banned PlexCorps and Mr. Lacroix from all investment-related activities targeted at Quebec residents. In October, Quebec’s Superior Court declared the company and Mr. Lacroix in contempt of court, finding the defendants continued to market and solicit investments in PlexCorps. The company, Mr. Lacroix ’09 ’11 ’13 ’15 Avg. venture-capital fund size €300 million 200 JOHN NGUYEN/ZUMA PRESS 100 0 2012 ’13 ’14 ’15 ’16 Note: €1 = $1.19 Source: Invest Europe THE WALL STREET JOURNAL. AIMING HIGH: The European Union is working on a $2.38 billion fund to help tech startups gain the scale to compete internationally. The seed money would be part of a public-private operation to bring new products to the global marketplace. B4 load the app on a child’s tablet computer or smartphone and activate and control it from their own Facebook account, including who is on the child’s contact list. Facebook, which owns the Messenger messaging app, said it consulted child-development and online-safety experts, the parent-teacher organization National PTA and thousands of parents as it developed Messenger Kids. There will be no advertising on the app and Facebook said it won’t create separate Facebook accounts for the youngsters. The only data the company will collect on them will no BY BETSY MORRIS AND DEEPA SEETHARAMAN n- Facebook Offers App for 6-Year-Olds Facebook Inc. said it is rolling out a new messaging app for its youngest audience yet— children between the ages of 6 and 12—in response to growing safety concerns from parents. But experts are questioning whether such young children are ready for any social-media access. Messenger Kids, released Monday, is a stand-alone chat and messaging app that allows children to send texts, messages and videos to a list of contacts their parents have approved. Parents can down- be their names. “What parents told us is there is a clear need for a service that looks like a responsible on-ramp to the internet,” said Facebook spokesman William Nevius. But the app also stands to help Facebook attract future users in a demographic group in which it has been vulnerable. Facebook hasn’t been as popular with teens and young adults as Snap Inc.’s Snapchat. Messenger Kids looks a lot like Snapchat, in that it offers silly masks and other Snap-like features—even one like the popular rainbow-vomit filter. Children are spending increasing amounts of time on smartphones and tablets at younger ages, Facebook and other researchers say. But Facebook doesn’t allow children under 13 to have accounts without parental consent. Messenger said it won’t migrate the Kids users to the main app when they turn 13. Other tech platforms have created products for children, including YouTube, a part of Alphabet Inc.’s Google. The YouTube Kids service, launched almost three years ago, drew criticism as hosting videos inappropriate for children, but that garnered millions of views. The videos included aniPlease see APP page B4 With Changes Afoot, Focus on Adjustments just withholding to avoid underpayment penalties. Some tax changes are almost certain, such as the repeal of state and local income-tax deductions. Other parts of the two bills are far apart. Alternative minimum tax. The Senate bill retains the alternative minimum tax, or AMT, for individuals. This levy could sting many, as it is projected to raise $133 billion over 10 years. The House bill repeals the AMT. The AMT is a parallel tax system that rescinds the benefit of some tax breaks, such as for property taxes or medical expenses. Joe Rosenberg, an analyst with the Tax Policy Center, estimates that the Senate’s lower tax rates alone could propel some couples earning between $300,000 and $750,000 into the AMT. Pass-through proposals. The two bills have fundamentally different approaches for businesses such as partnerships and S corporations that pass income through to owners’ tax returns, says Dustin Stamper, a director with Grant Thornton. Some in the Trump administration favor the Senate’s approach because it costs less and is easier to administer. The House bill taxes a portion of income at 25%, but it isn’t available to many service professionals such as accountants, architects or doctors. It also cuts the rate for some lower-earning small-business owners. The Senate bill allows passthrough owners to deduct 23% of business income, and it is available to some service professionals. It has complex limits, however. Mortgage-interest deductions. The Senate bill preserves current law, which allows interest deductions on a total of $1 million of mortgage debt on up to two Please see TAX page B2 N Nov. 1 Warns celebrities over coin-offering endorsements and Ms. Paradis-Royer couldn’t immediately be reached for comment. A Facebook page for PlexCorps was active as recently as Friday. The action against PlexCorps indicates the SEC’s interest in pursuing potential fraud in the mushrooming area of digital coin offerings. Private firms have raised more than $3 billion this year by selling new cryptocurrencies, according to research firm CoinDesk. This area of finance is largely unregulated, and many companies involved aren’t based in the U.S. or say that the offerings aren’t open to U.S. investors. Initial coin offerings don’t typically offer equity in a company issuing them. Rather, the offerings are more like crowdfundings, usually offering buyers of digital tokens the right to use them at some future date to buy a product or service the company plans to develop. The SEC has said it is focused on the prospects for fraud in such sales as well as the possibility that startups will sell tokens that should be registered as securities. The commission formed its cyber unit in September to focus on the area of cryptocurrencies. In the PlexCorps action, the SEC alleged the company promised investors that their money would be going toward development of a new cryptocurrency along with related products. Investors were also promised a return of 1,354% over 29 days on their investment. INSIDE TAX REPORT | By Laura Saunders Even though the Senate and House of Representatives have passed tax bills with a host of differences, many Americans should start to examine how they will adjust their paychecks. Following the Senate’s passage of its sweeping revisions to the U.S. tax code last week, it is now up to a small group to reconcile the two bills. Most provisions in both tax bills would take effect Jan. 1, which means many people will need to ad- O SEC Cyber Unit Alleges Scam In Coin Offering 20 0 S THE WALL STREET JOURNAL. BY PAUL VIGNA 2007 A Sept. 29 Files charges over fraudulent promotion of purported real-estate coin offering 30 10 J 3 co Fo m rp m e er rs ci on al a us l, e on Kick-Starting Tech Development in Europe J 2 Source: CoinDesk Europe See more at WSJMarkets.com ly . © 2017 Dow Jones & Company. All Rights Reserved. RECKONING LOOMS FOR BITCOIN BROADCOM STEPS UP FIGHT AT QUALCOMM STREETWISE, B12 MOBILE, B3 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. B2 | Tuesday, December 5, 2017 THE WALL STREET JOURNAL. * *** INDEX TO BUSINESSES BUSINESS & FINANCE These indexes cite notable references to most parent companies and businesspeople in today’s edition. Articles on regional page inserts aren’t cited in these indexes. E-F N eBay.............................B4 Facebook......................B1 Nokia...........................B4 Nuance Communications ...................................A12 NXP SemiconductorsB13 Bank of America . B2,B12 Barclays.....................B12 Betterment ............... B12 Broadcom.............B3,B13 C Cardiogram..................B5 Cboe Global Markets B12 China Evergrande Group .....................................B7 Cisco Systems ............ A4 CME Group................B12 Cornell Capital ............ B7 Crown Resorts............B6 CVS Health..........B1,B13 D Dianrong.com..............B4 Discovery Communications.......B3 Dollar General.............A1 Dollar Tree................A12 O-P Oracle..........................A4 Panasonic..................B13 Pine Brook Partners...B7 Q-R Qualcomm............B3,B13 Recreational Equipment .....................................B2 H S Harpo...........................B3 Hartford Financial Services Group ......... B7 Samsung SDI............B13 SoftBank Group..........B4 Sun Life Financial.......B7 I-J T Intel.............................A4 J.P. Morgan Chase....B12 J. Safra Group.............B7 Tesla..........................B13 TRB Advisors..............B7 21st Century Fox........B4 K-L U Kaiser Permanente.....B1 LendingClub.................B4 LG Chem....................B13 L.M. Ericsson Telephone .....................................B4 UBS Group...................B2 UniCredit...................B12 UnitedHealth Group....B1 V Visa.............................A4 M W Media Rights Capital..B3 Microsoft...............A4,B4 Morgan Stanley...B2,B12 Wal-Mart Stores......A12 Wells Fargo...............B12 Woodbridge Group......B6 INDEX TO PEOPLE B Bailey, Andrew..........B12 Ballinger, Brandon......B5 Barnier, Michel ......... B12 Bernstein, Rachel Witlieb......................B4 Bertolini, Mark T. ....... B2 Boylan, John...............B2 Burns, Lawton RobertB2 C-E Choi, Jimmy................B7 Crone, Nathan E. ........ B5 Elhage, Samih.............B3 Ellinghaus, Uwe..........B4 F-G Fernandez, Raul J.......B3 Geltzeiler, Michael S..B3 Girsky, Stephen J. ...... B3 Golden, David G..........B3 H Hagen, Veronica M.....B3 Halvorson, George......B1 Hassan, Naureen ...... B12 Hauser, Herman..........B4 Henderson, Jeffrey.....B3 Hill, Julie A.................B3 Htite, Soul...................B4 K Kispert, John H...........B3 Kocher, Robert............B2 M McFarlane, John........B12 McLaughlin, Mark.......B3 Merlo, Larry..............B13 Merlo, Larry J.............B1 Moedas, Carlos...........B4 Montag, Tom.............B12 N Nevius, William..........B1 Newman, Fredric S.....B4 Nysschen, Johan de....B4 O Radesky, Jenny...........B4 Reyes, Gregorio .......... B3 S Lautenschläger, Sabine ...................................B12 Sacconaghi, Toni.........B5 Sieg, Andy...................B2 Spacey, Kevin..............B3 Steele, Glenn .............. B2 T Tan, Hock .................... B3 Tsai, David .................. B7 V Vinciquerra, Anthony J. “Tony”.......................B3 Volpe, Thomas S.........B3 W Winklevoss, Cameron ...................................B13 Winklevoss, Tyler.....B13 Wong, Charlene .......... B5 O'Reilly, Bill................B4 P-R Pierre, Jean...............B12 Y-Z You, Harry L................B3 Zuckerberg, Mark ..... B13 Merrill Will Adhere To Recruitment Pact CVS no Merrill Lynch will remain part of a recruiting pact that its biggest competitors have recently abandoned, a move that may help the firm in retaining and recruiting at a time when Wall Street brokerages are under threat from independent rivals. Under the 2004 recruiting pact—known as the Protocol for Broker Recruiting—departing brokers are limited to taking names, addresses, phone numbers and email addresses of “clients that they serviced while at the firm.” Firms that aren’t party to the pact are able to make it tougher for departing brokers to bring clients with them through litigation and by temporary restraining orders. “While other firms are focused on leaving the broker protocol as a way of retaining advisers and clients, we’re staying focused on making sure that our advisers have everything they need to serve their clients and grow their businesses,” Andy Sieg, head of Merrill Lynch Wealth Management, said in a conversation with his leadership team, according to a person familiar with it. Mr. Sieg told leaders that Merrill, a unit of Bank of America Corp., is asking advisers, “in turn, to concentrate on two things: first, to help existing clients achieve their financial goals, and second, to acquire new client relationships.” A spokeswoman confirmed the conversation. n- BY LISA BEILFUSS Continued from the prior page tor practices, surgery centers and urgent-care clinics, as well as the nation’s biggest insurer and a major pharmacy-benefit manager. Big integrated players such as Kaiser Permanente and Geisinger Health System bring together the full spectrum of health-care services, including health plans, hospitals, clinics and physicians. Large hospital systems have been buying up doctor practices, as well as merging with one another. “It’s much harder to have a cost and quality advantage if you’re owning an ancillary part of the health-care delivery system, not the main part,” said Robert Kocher, a partner at venture-capital firm Venrock. CVS has around 1,100 retail clinics in its stores, with nurse practitioners and physician assistants offering services such as vaccinations. But it is doctors who traditionally stand at the center of patients’ care. Doctors write prescriptions, order imaging scans, make referrals and recommend treatments. They also play a littleknown but hugely important role in documentation and other practices needed for insurers to generate profits in the increasingly central Medicare business. “The reason individual doctors are so credible is because patients are generally pretty happy with their individual doctors. That’s a huge advan- On a cool day in October, Joe Clark and other North Carolina credit-union executives met on Capitol Hill, reviewed talking points, and headed to the first of 15 scheduled meetings in a twoday blitz of the state’s congressional delegation. Credit-union members across the nation made similar trips. Their main message: A polite reminder that credit unions were poised to defend a crucial federal-income-tax exemption, should eliminating it come up as part of the Republican tax plan. “We just want to make sure you are still on board with us,” Mr. Clark told House Chief Deputy Whip Patrick McHenry (R., N.C.) and others as they crisscrossed the Capitol complex. Mr. Clark’s trek, which he says he makes twice a year from Truliant Federal Credit Union in Winston-Salem, N.C., is one brick in a fortress that credit unions have been building for decades around their tax-exempt status. The industry last year recorded $9.6 billion in net income that wasn’t subject to corporate income tax. That has made it a thorn in the side of banks, which must pay the tax and have for years been lobbying to kill the exemption by arguing it gives credit TAX Continued from the prior page homes. The House bill allows home buyers who take out mortgages after Nov. 2, 2017, to deduct interest only on $500,000 of debt, and only for a first home. It appears to prohibit mortgage-interest deductions for all second homes. Child tax credit. The House credit is $1,600 per child under 17, plus $300 for each parent and nonchild dependent. The income phaseout begins at a higher income than under current law, $230,000 for joint filers and $115,000 for singles. The Senate bill has a $2,000 credit for each child age 18 and under, plus a $500 credit for nonchild dependents. The income phaseout begins far higher than under current law, $500,000 for both joint filers and single filers. Medical expense deductions. The House bill repeals the deduction for medical expenses. The Senate bill retains the deduction and expands it. The current threshold is expenses greater than 10% of income, and the Senate bill shrinks that to 7.5%. The lower threshold would apply Different Mix CVS and Aetna together will offer a mix of drugstores, pharmacy-beneﬁt management and insurance, but they won't have a foundation of doctors. Revenue: unions an unfair advantage. But credit unions have kept themselves off the chopping block as lawmakers scurried to find tax breaks to eliminate to help fund an overhaul of the tax code, making it a case study on why the tax code is so hard to rewrite. Credit unions don’t have to pay federal income tax as long as they serve a defined group of members and use profits to provide more services. Bankers say this requirement has grown meaningless. Congress and the National Credit Union Administration, the industry’s regulator, have gradually relaxed limits on credit unions’ activities. Though the industry is still smaller than the banking sector, it has grown: 282 credit unions had more than $1 billion in assets at the end of the second quarter. Bankers also say credit unions are using their resources for purposes that don’t justify the costs to the Treasury, such as lobbying. An NCUA spokesman said the agency hasn’t relaxed limits, but has “worked to modernize regulation to respond to the changes occurring in the financial industry” and done so within the law. Credit unions say they are complying with legal limits set by Congress while their members enjoy the benefit of lower-cost financial services. Proﬁtable Exemption Credit unions' net income has grown over time. It isn't subject to federal income tax. $3 billion 2 1 0 2010 ’12 ’14 ’16 Source: Callahan & Associates THE WALL STREET JOURNAL. Bankers have organized their own lobbying this year to kill the exemption. But the problem for bankers is that when they take up a political fight with credit unions, they often lose. Credit unions’ secret weapon is their ability to tap not only credit-union executives but also their roughly 110 million members, part of what boosters call the “creditunion movement.” When Dennis Ross, a Florida Republican congressman, proposed taking away the taxexempt status of credit unions in 2012 as part of a broader deficit-reduction bill, he faced immediate blowback. All of a sudden the freshman congressman “felt very popular,” he said in an interview. co Fo m rp m e er rs ci on al a us l, e on A Aernoudt, Rudy...........B4 BY RYAN TRACY Pharmacy beneﬁts Retail/pharmacy CVS Health $120 billion Health insurance $81 + Aetna $63 $23B (cross-segment sales) Other companies, including UnitedHealth Group, have a different mix. UnitedHealth includes a growing number of physician practices, plus an insurer and pharmacy-beneﬁt manager. UnitedHealth $60 $149 $24 Other* $48B (cross-segment sales) *Doctor practices included Source: S&P Capital IQ tage,” said Glenn Steele, former CEO of Geisinger. But, he said, “there’s a huge amount that is doable conceptually outside the classic doctor-run medical system.” The merged CVS’s vertical reach may also bring a risk, as the combined CVS-Aetna seeks business from companies that may now become direct competitors. “They will lose those insurers that valued having a stand-alone PBM,” said Leemore Dafny, a professor at Harvard Business School. The companies said Aetna will be operated as a stand-alone unit under CVS with strong firewalls to protect confidentiality, and that they expect to continue to win business from competitors. CVS and Aetna say that by integrating pharmacy-benefit and medical coverage, as well as offering expanded health- THE WALL STREET JOURNAL. care offerings at its stores, the combined company will be able to bring down costs and fill gaps that physician practices may not cover. For instance, the tie-up would result in better care for patients with chronic conditions and fewer expensive, avoidable events such as readmission to the hospital, executives said. “We can play that complementary role of supporting that physician between visits,” Mr. Merlo said. One immediate focus, the companies said, would be to reduce emergency-room use. “All-in-all, this is a good strategy but not without its integration risks,” Edwards Jones senior equity analyst John Boylan said. He said the deal appears to provide enough benefits and potential savings to justify the risk involved in cre- Dan Berger, now president of the National Association of Federally-Insured Credit Unions, recalled phoning Mr. Ross’s office within minutes. “Hey, we are coming to see you,” he said. Credit-union representatives showed up soon after, arguing the bill would hurt members and could force credit unions to close. Mr. Ross withdrew his proposal. Had Mr. Ross gone further, he might have encountered “Project ZIP Code,” a tool created by the Credit Union National Association, another trade group. It identifies credit-union members by their home address and matches the data with congressional districts to target lawmakers it sees as a threat. When Republicans started laying the groundwork for the rewrite of the tax code in 2014, Project ZIP Code was triggered to help credit-union members write their congressmen or post on social media: “Don’t tax my credit union.” Rep. Tom Rice (R., S.C.), a member of the House Ways and Means Committee, said Republicans didn’t consider provoking credit unions in this year’s tax overhaul. “I have heard both sides of the story from both sides of the spectrum and I do believe there is a space” for credit unions, he said. “I think that place should be maintained.” LUCY NICHOLSON/REUTERS B G Geisinger Health System......................B2 General Motors...........B4 Global Atlantic Financial Group.........................B7 GNC Holdings..............B4 Goldman Sachs Group ............................. B4,B12 Guggenheim Partners.B7 Credit UnionsKeep TheirTax Break ly . A Aetna..............B1,B7,B13 Alcatel.........................B4 Alphabet................A4,B1 Amadeus Capital Partners....................B4 Amazon.com...............A4 Amperex....................B13 Apple.........A4,B2,B5,B13 ARM Holdings.............B4 Atlas Merchant Capital .....................................B7 The House bill would repeal an exemption for certain university tuition waivers. for 2017 as well. Education. The House bill eliminates several education benefits that the Senate doesn’t. The House bill would repeal an exemption for certain university tuition waivers, and they would count as taxable income to recipients. This would affect many graduate students whose tuition is waived in return for teaching classes or performing research. The House bill also repeals an exemption for education assistance that employers provide to employees. Under current law, up to $5,250 of education assistance isn’t taxable. It also eliminates the cur- ating a new business model. “It’s one of those things that, unfortunately, is going to have to play out over time.” The merged CVS’s stores will offer wellness services, as well as vision, hearing, nutrition and medical equipment, the companies said. Among other possible offerings are blood draws for lab testing, infusion of specialty medications and help with durable medical equipment, a category that includes products such as wheelchairs, executives said. Some stores will become health hubs, company executives said, with staff able to answer questions about insurance coverage as well as clinical queries. Aetna CEO Mark T. Bertolini compared the new CVS sites with Recreational Equipment Inc. outposts and Apple Inc.’s Genius Bars, where consumers could get guidance as well as help with tasks such as making medical appointments and purchasing insurance plans. Lawton Robert Burns, a professor at the University of Pennsylvania’s Wharton School who has long studied healthcare providers, said he is “skeptical because it’s a super-big challenge” to re-engineer patterns of care on a national scale. “It sounds good on paper, but this stuff is so hard to deliver,” he said. “You could have CVS offering stuff, but then you have to ask why is that going to lead to people going to the pharmacy and doing things differently than they have been doing?…They’re not there to have a sustained conversation with their pharmacist.” rent deduction for up to $2,500 of interest paid on federal student loans. This is available now for most singles with income below $80,000 and couples earning below $160,000. The House bill slightly expands the American Opportunity Tax Credit, but it eliminates other education benefits, such as the Lifetime Learning Credit. First-in, first-out stock sales. Unlike the House bill, the Senate version has a provision requiring individual investors selling part of a holding in a taxable account to sell their oldest shares first. This means investors could no longer identify which shares they are selling to minimize taxes. The provision would apparently consider each account separately, according to tax specialists. Alimony. Unlike the Senate bill, the House proposal repeals the current treatment of alimony, in which the payer gets a deduction and the recipient claims it as income, for divorce agreements signed after 2017. Individual mandate. Unlike the House bill, the Senate version repeals the individual mandate requiring most Americans to pay a penalty tax if they don’t have health insurance. why did the turtle cross the ocean? Discover a world of investment opportunities with Ariel’s international and global strategies. We offer mutual funds and separate accounts spanning the market cap spectrum and covering the globe. arielinvestments.com/think-global Investors should consider carefully the investment objectives, risks, and charges and expenses before investing. For a current summary prospectus or full prospectus which contains this and other information about the funds offered by Ariel Investment Trust, call us at 800.292.7435. Please read the summary prospectus or full prospectus carefully before investing. Distributed by Ariel Distributors, LLC, a whollyowned subsidiary of Ariel Investments, LLC. Ariel Distributors, LLC is a member of the Securities Investor Protection Corporation. WSJ ©2017 Slow and steady wins the race. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. Tuesday, December 5, 2017 | B3 THE WALL STREET JOURNAL. BUSINESS NEWS Oprah Winfrey Sells Part of OWN Stake no n- Discovery Communications Inc. is taking majority control of OWN, the cable network it co-owns with Oprah Winfrey. Under the terms of the deal, Discovery said it has purchased 24.5% of OWN for $70 million from Ms. Winfrey’s company Harpo Inc. Ms. Winfrey’s Harpo will still hold a 25.5% stake in OWN, which had previously been a 50/50 joint venture, and Ms. Winfrey will continue as chief executive of the network. As part of the sale, Ms. Winfrey extended her contractual relationship with the network through 2025. This is the first time Ms. Winfrey has taken any money out of OWN. OWN launched in 2011 and initially struggled to establish itself with viewers. In recent years, however, its ratings have improved thanks to original dramas including “Queen Sugar” and “Greenleaf.” By taking majority ownership in OWN, Discovery will be able to include its results on its balance sheet. “This transaction allows Discovery and Oprah to unlock more value from our partnership,” Discovery Chief Executive David Zaslav said. —Joe Flint Qualcomm said the proposal from Broadcom faces several challenges, including financing issues for the $105 billion transaction. Broadcom Turns Up Heat Takeover bid for Qualcomm shifts into higher gear with plans for board candidates BY TED GREENWALD Broadcom Ltd. opened the next front in its $105 billion takeover bid for Qualcomm Inc., saying Monday it plans to submit its own candidates to sit on its target’s board. Nominees are due by the end of the week. Broadcom said it intends to propose 11 new independent directors, and would support expanding the board to reappoint three outside directors who were added as part of a mid-2015 deal with activist investor Jana Partners. Broadcom didn’t signal whether it intends to raise its offer beyond the initial $70 a share. The company likely will do so before Qualcomm’s annual shareholder meeting, expected in March, according to a person familiar with Broadcom’s strategy. In a statement, Broadcom Chief Executive Hock Tan said his company has “repeatedly attempted to engage with Qual- comm, and despite stockholder and customer support for the transaction, Qualcomm has ignored those opportunities.” Qualcomm said Broadcom’s proposal faces several challenges, including financing and the prospective acquirer’s current domicile in Singapore. Mr. Tan, shortly before submitting his bid, said he planned to move Broadcom’s headquarters to the U.S. but didn’t set a firm schedule for doing so. San Diego-based Qualcomm also touted its leadership in innovative markets such as automotive and next-generation cellular technologies—an apparent shot at Broadcom’s strategy of focusing on predictable markets. “Qualcomm stockholders expect a board that will support this innovation while evaluating objectively the full range of opportunities available to maximize value for all Qualcomm stockholders,” Tom Horton, Qualcomm’s presiding director, said in a statement. Broadcom’s announcement Monday wasn’t a surprise. Qualcomm’s directors in midNovember rejected Broadcom’s offer unanimously, and a per- son familiar with the matter had said Broadcom would consider its own directors if met with resistance. Broadcom, which is scheduled to release fourth-quarter earnings Wednesday after the market closes, said it hopes to complete a deal on friendly terms. Still, its move to pack Qualcomm’s board pushes the effort into a more aggressive phase. “Now the clock is running,” said Marcel Kahan, a law professor at New York University. “The vote can be postponed by days or weeks, but they can’t drag it out forever.” Nominating directors is a common tactic used to pressure a reluctant target into talks. Seldom does it result in the election of hostile directors, as the parties usually either strike a deal, the acquirer withdraws its bid or a third party makes a competitive offer. Broadcom’s slate includes Samih Elhage, a former Nokia Corp. executive; Raul J. Fernandez, vice chairman at Monumental Sports & Entertainment; Michael S. Geltzeiler, former financial chief at ADT LLC; Stephen J. Girsky, managing partner at VectoIQ; David G. Golden, managing partner at Revolution Ventures; Veronica M. Hagen, former CEO of Polymer Group Inc., later renamed Avintiv Specialty Materials Inc.; Julie A. Hill, owner of Hill Co.; John H. Kispert, managing partner at Black Diamond Ventures; Gregorio Reyes, former board chairman at Dialog Semiconductor PLC and LSI Corp.; Thomas S. Volpe, managing member of Volpe Investments LLC.; and Harry L. You, finance chief at GTY Technology Holdings Inc. The three directors Broadcom would seek to reappoint are Mark D. McLaughlin, CEO of Palo Alto Networks Inc.; Anthony J. “Tony” Vinciquerra, chief of Sony Pictures Entertainment; and Jeffrey W. Henderson, an advisory director at Berkshire Partners LLC. Broadcom hasn’t had any discussions with the three, a person familiar with the matter said. Together, Broadcom and Qualcomm would be the thirdlargest semiconductor supplier by revenue and a dominant maker of chips for a wide range of communications functions. —Allison Prang contributed to this article ly . “House of Cards” will return on Netflix for one more season, ending speculation that the sexual-harassment scandal that led to the firing of actor Kevin Spacey would also bring an abrupt finish to the critically acclaimed political drama. The final season will include eight episodes to be shown on the streaming service next year, Chief Content Officer Ted Sarandos said Monday at the UBS Global Media and Communications Conference in New York. Mr. Sarandos didn’t say how Mr. Spacey’s absence will be explained on the show. Co-star Robin Wright, who plays Claire Underwood, wife of Mr. Spacey’s Frank Underwood, is on board for the sixth season. Earlier this fall, Mr. Spacey was fired by “House of Cards” producer Media Rights Capital. Netflix had also indicated it wouldn’t proceed with another season of the show if Mr. Spacey remained involved. After the allegations against Mr. Spacey emerged, Netflix and Media Rights Capital halted production while they evaluated the show’s future; the coming season was already expected to be its last. In late October, BuzzFeed published a story in which actor Anthony Rapp alleged that Mr. Spacey made an unwanted sexual advance toward him when he was 14 years old in 1986. Other complaints of sexual assault and harassment against Mr. Spacey have since emerged. In a response to Mr. Rapp, Mr. Spacey said he had no recollection of the incident but said “if I did behave then as he describes, I owe him the sincerest apology for what would have been deeply inappropriate drunken behavior.” Media Rights Capital has acknowledged there was an incident involving Mr. Spacey and a “House of Cards” crew member in 2012 that it said was resolved “promptly to the satisfaction of all involved.” Netflix said it had been unaware of the 2012 incident until this fall. Mr. Spacey is one of several entertainment and media personalities whose careers have been torpedoed by allegations of sexual harassment or inappropriate behavior. co Fo m rp m e er rs ci on al a us l, e on BY JOE FLINT GEORGE ROSE/GETTY IMAGES ‘House of Cards’ Sets Final Season For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. B4 | Tuesday, December 5, 2017 THE WALL STREET JOURNAL. * * TECHNOLOGY WSJ.com/Tech Chinese Loan Firm Dianrong Plans IPO Seed Fund Targets Europe Tech European Union pushes plan to pump over $2 billion in support into startups BY DANIEL MICHAELS By Julie Steinberg, Anjani Trivedi and Chuin-Wei Yap DAVID RAMOS/GETTY IMAGES Europe’s erstwhile tech leaders include Nokia. Now investors must look outside the continent for big technology plays. APP Share of screen time, children up to 8 years old Television FACEBOOK 2017 n- the U.S. use tablets or smartphones every day. Facebook said it didn’t commission the research from Dubit, which also creates online entertainment for children, including a virtual-reality game for the Facebook-owned Oculus Rift, according to its website. Children in the 6-12 age bracket aren’t ready for a messaging app, says Dr. Radesky. “It’s the content of messaging—the unintentional slights, insults or oversharing—that I would want parents to be able to monitor.” Parents won’t be able to monitor their children’s usage BUSINESS OPPORTUNITIES Calif. corp. has $5,600,000 of federal and state loss carry-forwards expiring 2017. Call 203-879-2009 firstname.lastname@example.org Estes Park, Colorado Premier Lodge/Cabin Resort 31 units located along Fall River Bordering Rocky Mountain National Park For information contact David Bowman Amber Hotel Company 818-667-0627 § email@example.com Valve Sales & Service Co. Inc. BUSINESS OPPORTUNITIES BUSINESS LOANS $30K-$10MM www.fundswired.com 877-600-FUND(3863) Est. 2000 Videogame player 69% 31 58% TRAVEL Save Up To 60% First & Business INTERNATIONAL Major Airlines, Corporate Travel Never Fly Coach Again! www.cooktravel.net (800) 435-8776 THEMART ADVERTISE TODAY (800) 366-3975 firstname.lastname@example.org © 2017 Dow Jones & Company, Inc. All Rights Reserved. in real time. They don’t have access to the content of those messages from their accounts, Facebook said, citing its research showing that parents are accustomed to scanning those messages directly from their child’s devices from time to time. Messenger designed the app to be engaging. It includes GIFs, stickers and the ability to draw on photos. Messenger Kids also allows for simultaneous group video chats, which look a lot like Houseparty, a new app popular with young users that lets groups of people hang out on live video. 17 Mobile device 17 10 6 14 5 48 Daily time with screen media Where mobile media used, 2017 150 minutes < 2 years 2 to 4 5 to 8 60% often/sometimes use a device Total screenmedia time 120 Messenger Kids lets children send text messages and videos. 2017 TAX SAVINGS C CORP FOR SALE 45 yrs. in bus. - 2+ ac. property - 32K sqft bldg. - machine shop / testing facility - 6 mil. #s of valve inventory. Large rolling stock. All lien free. For sale, all or part $1 - 4 mil. By retiring owner. Houston, TX. (713) 898-0655 § 713-678-4200 email@example.com Computer 40 90 60 20 Mobile devices 30 0 Computer Videogame ’17 players 0 2011 Vehicle Restaurant At home, during meals Percentage of children using social media, 2017 Percentage of children using virtual assistants*, 2017 Play games AGE <2 years 2% 2-4 Boys 11 5-8 23 Use a website† 28% 4 15 Girls 6 *Voice-activated device like Amazon Echo or Apple’s Siri †Such as Club Penguin, Animal Jam or Minecraft, if played online Source: Common Sense Media THE WALL STREET JOURNAL. BUSINESS WATCH FOX NEWS GNC HOLDINGS Ex-Producer Sues Bill O’Reilly Wellness Retailer To Explore Options An ex-producer has sued former Fox News Channel personality Bill O’Reilly, claiming he violated a confidentiality agreement related to a 2002 settlement reached over his alleged mistreatment. Rachel Witlieb Bernstein said Mr. O’Reilly defamed her by falsely suggesting publicly that claims against him were motivated by politics and money. Ms. Bernstein had complained about abuse, nonsexual in nature, by Mr. O’Reilly when she worked at Fox. She said Fox, a unit of 21st Century Fox Inc., and Mr. O’Reilly misled the public by claiming that no one complained to a Fox hotline about his behavior. She said she talked repeatedly to bosses about Mr. O’Reilly’s actions, but there was no hotline in place at the time. The lawsuit was filed Monday in federal court in Manhattan. Mr. O’Reilly’s lawyer, Fredric S. Newman, said his client has never mentioned Ms. Bernstein’s name in any context. “Today’s lawsuit has absolutely no merit, and Mr. O’Reilly will respond aggressively in court,” Mr. Newman said. 21st Century Fox and News Corp, which owns The Wall Street Journal, share common ownership. —Associated Press GNC Holdings Inc. said it hired an adviser to explore strategic alternatives nearly three months after it brought in a new chief executive. The Pittsburgh-based health and wellness retailer said Monday that it hired Goldman Sachs & Co. to help evaluate its capital structure and “other alternatives to enhance shareholder value.” The company also withdrew plans to secure new debt, while reiterating annual cash-flow targets. In September, GNC named Ken Martindale, the former chief executive of Rite Aid Corp.’s Rite Aid stores, as its CEO. GNC had struggled with sales and its interim CEO had called the company’s business model “broken.” In May 2016, GNC said it hired Goldman Sachs to look at alternatives, which could have included a sale. —Allison Prang share slide, even as the brand grows rapidly in China. Uwe Ellinghaus chose to leave his position as Cadillac’s chief marketing officer effective Dec. 31, according to a statement from President Johan de Nysschen. Recruited from BMW AG earlier in the decade, Mr. Ellinghaus was charged with rebooting Cadillac’s image, but U.S. sales have declined even as the overall luxury market expanded. With only a sliver of the U.S. market, the brand has turned its attention to China, where sales have tripled over the past four years and are on pace this year to top Cadillac’s U.S. sales for the first time. In an email, Mr. Ellinghaus, an avid marathoner, said he is leaving Cadillac for personal reasons, including an expected monthslong recovery from a complex foot surgery. Cadillac will conduct a search for a new marketing chief, Mr. de Nysschen said. The resignation was reported earlier by trade publication Automotive News. —Mike Colias GENERAL MOTORS Cadillac’s Chief Of Marketing Exits The marketing chief for General Motors Co.’s Cadillac division is leaving the luxury brand following a four-year turnaround effort that has seen U.S. market MIKE STONE/REUTERS BUSINESS FOR SALE DVD/ Videotape 2011 To advertise: 800-366-3975 or WSJ.com/classiﬁeds When Your Bank Says "No!", We Say "Yes!" years is less than half the size of the average U.S. fund, according to Invest Europe. That means European private investors lack the deep pockets that established startups rely on to become international players. U.S. companies in this scale-up phase have access to almost 30 times the funding that EU companies do, estimates Rudy Aernoudt, a professor of economics and business at Ghent University in Belgium. Europe’s equity markets are fragmented among 28 members of the EU. That limits the pool of funding in each country, even though the EU economy, with 500 million consumers, rivals the U.S. Children up to 8 years old are spending slightly more time in front of a screen, and that screen is more likely to be a mobile device. no The Mart By comparison, many U.S. venture-capital funds have more than $1 billion under management. Funding is a leading reason Europe fails to profit from its ideas. Europeans start companies at about the same rate as Americans do, according to EU Budget Commissioner Günther Oettinger. But European venture-capital funds have raised less than one-fifth the amount amassed by their U.S. counterparts in each of the past three years, down from almost onethird as much a decade ago, according to Invest Europe, an investor trade group. Also troubling for EU startups: The average European VC fund created over the past five Screen Time Continued from page B1 mated characters in graphic cartoons that critics said were disturbing to children. In response to the reports, YouTube said it strengthened rules around age-restricted videos, terminated dozens of channels and removed ads from hundreds of thousands of videos. Child-development experts are concerned by Facebook’s Messenger Kids launch, which could present dangers with the messages children see, and the way they could get hooked on social media. “In my research, clinical work and friendships, I’ve never heard parents say that they want their child using social media earlier,” said Jenny Radesky, assistant professor, pediatrics at the University of Michigan. Her research includes examining how increased screen time might affect early childhood behavior and development. Facebook cited research from U.K. consulting firm Dubit showing that about twothirds of 6- to 12-year-olds in ADVERTISEMENT In parallel with financing, the EU is gathering seasoned private investors for a pilot European Innovation Council, to help identify and filter commercially promising ideas and startups. “I think it will make a difference,” said Herman Hauser, co-founder of Amadeus Capital Partners, in Cambridge, England, and previously a founder of British chip designer ARM Holdings PLC, which Japan’s SoftBank Group bought for $32 billion last year. The new EU-led funding “is not a trivial amount,” said Mr. Hauser, who recently led a panel of investors who advised on creating the innovation council. that could raise at least $500 million, according to people familiar with the matter. The Shanghai-based company is planning to list its shares in Hong Kong, the people said. Founded in 2012, Dianrong makes loans and sells investment products to individuals and small businesses. Dianrong’s American founder and chief executive officer, Soul Htite, co-founded LendingClub in 2006. Mr. Htite was head of technology at LendingClub and left in 2011 before the San Franciscobased company went public. Dianrong has raised several rounds of private funding, the most recent of which was a $220 million capital raise announced in August from investors including Singapore’s sovereign-wealth fund GIC Pte Ltd. Other shareholders include Northern Light Venture Capital, Tiger Global Management LLC and the private equity arm of Standard Chartered PLC. Online lending volume in China reached 1.2 trillion yuan ($181.4 billion) in November, about 54% higher than a year earlier, according to data provider Wangdaizhijia. Dianrong previously said it issued 23 billion yuan worth of loans in 2016 funded by more than 3.6 million investors. The broader consumer-finance industry has come under increased scrutiny from Chinese regulators, who are concerned about a rise in risky lending practices and the potential for predatory lending behavior among some companies. Last Friday, the China Banking Regulatory Commission pledged to clean up lax lending practices among businesses that make microloans, which are small, short-term loans that carry high interest rates. The regulator said online microlenders without proper licenses would be banned from operations, and announced caps on interest rates and financing fees. Dianrong could push back its listing plans if market conditions aren’t optimal, according to a person familiar with the situation. An IPO, however, could enable the company’s backers to monetize some of their shares and profit in what has been a hot market for tech-related IPOs in Hong Kong in the past year. ly . ropean stock portfolios and pension funds. Today those jobs are gone, and European investors must look abroad for big tech plays, adding currency risk to investments. Mr. Moedas is spearheading a plan for the European Union to provide €400 million (about $476 million) in seed money for a €2 billion ($2.38 billion) public-private funding operation, whose goal is to help small tech firms gain the scale needed to compete internationally. In coming weeks, Mr. Moedas aims to name the first management groups selected to build five investment funds around the EU kick-start, part of the EU’s Horizon 2020 research program. co Fo m rp m e er rs ci on al a us l, e on BRUSSELS—In the world of corporate R&D, Europe excels at R but struggles at D. Investors and technocrats are trying to fix that. Despite years of financial crises, European scientific research—the R—remains worldleading. From Estonia to Portugal, Europe’s tech scene is coming to life. Where the Continent falls short is in developing (the D) breakthroughs into products and companies that generate jobs, profits and tax revenue. Instead, many of Europe’s best ideas become blockbusters for U.S. and Asian companies. Skype, an Estonian startup, was bought by eBay and is now part of Microsoft. Bluetooth technology was invented by a Dane at Sweden’s Ericsson in the 1990s. “It saddens me that we are not able to do better” at turning innovation into jobs and profits, said European Commissioner Carlos Moedas, a onetime Goldman Sachs banker who oversees European Union financing of research projects. He wants government largess not only to spur innovation, but also to keep it at home. The impact can be profound. Erstwhile tech leaders including Ericsson, Finland’s Nokia and Alcatel of France were once big employers whose shares pumped up Eu- Dianrong.com, a Chinese online lending platform started and run by a cofounder of LendingClub Corp., is planning an initial public offering as soon as next year Cadillac’s U.S. market share has fallen but has grown in China. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Tuesday, December 5, 2017 | B5 TECHNOLOGY Apple Delves Deeper Into Health Anyone 22 or older with an Apple Watch can join the study. Health Researchers Deploy Apple Tools eas such as epilepsy, chronic pain, diabetes and exercise. Nathan E. Crone, professor of neurology at the Johns Hopkins University School of Medicine, is optimistic his “EpiWatch” study will show the Apple Watch can detect an epileptic seizure using heart-rate and motion-sensor data. It could then alert patients, though if they have lost awareness, it could alert family members and care givers. Researchers have been encouraged by their ability to enroll patients quickly using Ap- ple’s software tools. Stanford researchers have been helping to run a separate heart study called MyHeart Counts using participants’ iPhones or watches and an app to detect patterns that might be linked to cardiovascular health. Anyone 18 and older is eligible to enroll by downloading the free app from the Apple app store. But it is just as easy to drop out. In the first seven months of the study during 2015, nearly 49,000 people downloaded the app but only about 4,990 stuck with it. curately than study participants relying on recollection or making entries into log books, they say. But researchers also see limitations, including high dropout rates, as well as patient demographics that don’t always represent the broader population—partly because of the high cost of some devices. The Apple Watch costs between $249 and $399. Concerns also have emerged about the privacy of participants’ health data because many of the devices and apps involve third-party vendors, said Charlene Wong, an assistant professor of pediatrics at the Duke University School of Medicine who has studied the use of technology in pediatric health care. Apple will face those challenges firsthand with the co Fo m rp m e er rs ci on al a us l, e on Launching a research study of its own is a departure for Apple Inc. In 2015, just before it launched its smartwatch, Apple introduced ResearchKit, a software system medical researchers could use for creating apps to use for studies. A host of researchers have taken Apple up on that, placing the smartwatches and iPhones at the center of research in arthis year. Researchers are deploying the technologies to detect epileptic seizures, prevent cardiovascular disease and help U.S. combat veterans adjust to civilian life. Researchers say the digital tools can make participating in medical studies more convenient for healthy volunteers and patients. And built-in features such as heart-rate monitors can record data more ac- n- Medical researchers are increasingly turning to mobile devices such as smartphones and watches as a way to monitor patients in trials, an approach they hope improves participation and accuracy but that also has limitations. If the tactic catches on, it could prove another selling point for products such as Apple Inc.’s watch, which thus far has failed to gain the type of widespread adoption the iPhone and iPad have enjoyed. The company last week released an app that will enable it to test the Apple Watch’s ability to track irregular heart rhythms as part of a study done in collaboration with Stanford University researchers. The study is the latest aiming to tap the ubiquity of mobile devices to monitor or improve health, and it is Apple’s most aggressive attempt to elbow into the $3.2 trillion U.S. health-care market. While Apple has sold 30 million watches since the product made its debut in 2015, it hopes to boost sales of the device by bolstering its health-care capabilities in addition to its timekeeping and fitness-monitoring functions. The company also could push further into medical-records management and more. “Everyone is looking at the fact that about a fifth of the economy is health care,” said Brandon Ballinger, co-founder of Cardiogram Inc., which uses wearable technology to conduct health diagnostics. Since 2009, at least 940 clinical trials using mobile devices have been registered with ClinicalTrials.gov, a database run by the National Institutes of Health. About 290 of these were registered so far APPLE BY PETER LOFTUS AND TRIPP MICKLE study of the app’s ability to detect irregular heartbeats—a condition known as atrial fibrillation that can lead to strokes. Anyone 22 and older with an Apple Watch will be able to participate and choose to wirelessly share their heart data with Apple and researchers at the Stanford University School of Medicine. The study will combine the watch’s LED lights, which monitor blood flow through the wrist and already were able to measure heart rate, with the app’s software algorithm that can detect irregular rhythms. If there is an issue, participants will be notified and given a free consultation with a study doctor as well as an electrocardiogram patch that adheres to the skin for more monitoring. The project is being led by Apple’s growing health team. Since at least 2012, LinkedIn shows the company has hired or reassigned hundreds of engineers, clinical researchers and doctors to an internal team focused on health. The company also has acquired health startups such as Gliimpse Inc., which worked on shareable medical records. People at Apple with knowledge of the study said the company plans to submit the app, known as the Apple Heart Study, to the U.S. Food and Drug Administration for approval as a regulated software. The company doesn’t need to submit the watch itself to the FDA, however, because the agency plans to regulate medical software and the sensors in wearable devices—but not the actual wearables, an FDA spokeswoman said. Sanford C. Bernstein & Co. analyst Toni Sacconaghi says efforts to accelerate sales of the Apple Watch rest on proving it is capable of more health-monitoring functions than tracking heart rate and steps. Capabilities such as tracking glucose would help encourage health insurers or doctors to encourage watch use, he wrote earlier this year. no EVERY MARKET TREND HAS AN EXPIRATION DATE BY NATALIA DROZDIAK BRUSSELS—Ireland will begin collecting €13 billion ($15.46 billion) in back taxes from Apple Inc. as soon as early next year after both sides agreed to the terms of an escrow fund for the money, Ireland’s finance chief said Monday. The European Union in 2016 ordered Dublin to retrieve the billions of euros from Apple in uncollected taxes, which the EU said Apple avoided paying with the help of sweetheart tax deals from Ireland. A year after that decision, however, Ireland still hadn’t recouped the money, leading the EU in October to refer Dublin to the bloc’s highest court, the European Court of Justice, for failing to implement the decision. Ireland has said the money collection was held up by negotiations over the escrow account, which will hold the company’s dues while both Apple and Ireland appeal the EU’s 2016 decision in court. Irish Finance Minister Paschal Donohoe Monday said he expected the flow of money from Apple to begin in the first quarter of 2018 once they complete the tendering processes to determine who would operate the account and who would then manage the fund. The Irish finance chief made the remarks to reporters before a meeting Monday with EU antitrust chief Margrethe Vestager. In a statement, Apple said, “We have a dedicated team working diligently and expeditiously with Ireland on the process the European Commission has mandated. We remain confident the General Court of the EU will overturn the Commission’s decision once it has reviewed all the evidence.” ly . Study with Stanford uses the company’s watch to keep track of irregular heartbeats iPhone Maker In Irish Tax Pact Which is why we offer funds and ETFs across asset classes to help your clients weather every market trend for the long-term. 4 diverse solutions to help build a stronger portfolio: HLIEX GBOSX GAOSX JPIN jpmorgan.com/funds/4solutions LET’S SOLVE IT. Investors should carefully consider the investment objectives and risks as well as charges and expenses of a fund. The prospectus contains this and other information about the fund and should be read carefully before investing. To obtain a prospectus for Mutual Funds: Contact JPMorgan Distribution Services, Inc. at 1-800-480-4111 or visit jpmorganfunds.com. Exchange Traded Funds: Call 1-844-4JPM-ETF or visit jpmorgan.com/ETF. International investing has a greater degree of risk and increased volatility due to political and economic instability of some overseas markets. Changes in currency exchange rates and different accounting and taxation policies outside the U.S. can affect returns. Investing involves risk, including possible loss of principal. J.P. Morgan ETFs are distributed by JPMorgan Distribution Services, Inc., which is an affiliate of JPMorgan Chase & Co. Affiliates of JPMorgan Chase & Co. receive fees for providing various services to the funds. J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide. This communication is issued by Distribution Services Inc. and J.P. Morgan Institutional Investments, Inc., both members of FINRA/SIPC.; and J.P. Morgan Investment Management Inc .© JPMorgan Chase & Co., November 2017 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. B6 | Tuesday, December 5, 2017 THE WALL STREET JOURNAL. BUSINESS NEWS Woodbridge Filing Hits Small Investors Real-estate firm seeks protection from creditors as it is under investigation by SEC The Owlwood estate, a 1930s mansion that once belonged to Sonny and Cher, is owned by Woodbridge. Woodbridge owns the Owlwood estate, a 1930s Italian Renaissance-style mansion once owned by the pop duo Sonny and Cher. A Woodbridge affiliate paid $90 million for Owlwood in September 2016, and has it on the market for $180 million. Owlwood was purchased the same month the SEC started asking questions about Woodbridge and its practice of raising money from mom-andpop retail investors. The investors, which included a number of retirees, were sold notes that were supposedly safe, secured by first-lien positions on valuable properties and that were supposed to pay off in 12 to 18 months. One of Woodbridge’s first moves in bankruptcy will be to Casino Operator Faces Lawsuit ADVERTISEMENT Legal Notices BY MIKE CHERNEY To advertise: 800-366-3975 or WSJ.com/classiﬁeds CLASS ACTIONS A new lawsuit alleges Crown Resorts Ltd. misled investors about the risks involved in its efforts to woo lucrative Chinese high rollers, the latest fallout for the Australian casino operator after its employees were arrested in China for gambling crimes last year. The class action was filed in the federal court of Australia by law firm Maurice Blackburn on behalf of shareholders who purchased Crown stock between Feb. 6, 2015 and Oct. 16, 2016. Michael Donelly, senior associate at Maurice Blackburn, said hundreds of shareholders had registered to participate and that the case is similar to others that were settled for more than 100 million Australian dollars (US$76 million). In a brief statement, Crown, which booked revenue of about A$3.2 billion in the most recent fiscal year, acknowledged the lawsuit had been filed and promised to “vigorously defend” itself against the allegations. Crown shares fell 14% on Oct. 17, 2016, when Crown said that some employees in China had been detained. The episode rattled the global casino industry, which had targeted Chinese VIPs in recent years, and Crown’s VIP revenue in Australia ended up falling 49% in the fiscal year. Other casino companies in the region said their VIP revenue also fell after the detentions. Jason O’Connor, an Australian who was Crown’s head of international VIP operations, was charged and pleaded guilty along with 18 other current and former employees, including two other Australians and one Malaysian. Mr. O’Connor and four co Fo m rp m e er rs ci on al a us l, e on ! " # $% &' ! (! ) !"# $ $ $ !$"# %& & '(# ) ! "# *+, ,-.** /(# 0# $ !"# / 1 2 3 2 4 5 !32"# 32 / / 6+78 32 / / 9 / 5 2 : 2; ' 0 <77 / 0 0 *777=,*+*-# > $ *! + 0 ! ?2" 32 / / / ' ' 32 / ' / ! ?2" 2 / ?3 3 / 03 )@@3 32 ' / 32 / ' 2 32 / % ? / % / 5 32 ! A2"# 2 .77,B8-,8*<B *! ,! -( + / / 32 32 / 2 @ : 2 32 2 5 $ 2 2 32 / 9 32 2 2 2 32 / n- no / % 3: % 5 4> % ' 68B $ 6B< 6*=7 @ ?2 9 / 5 @ 2 : % 2 A2 2 2 : 9 ?2 @ 2 *# C -# % @C +# 2 ?2 ?21 @ ?2 / 5 2 *77D / 5 / . 0 1 2 + ?2 2 2 / 5 % % * -7*. 0 2 / A2 2 , 2 2 ?2 2 / 5 2 2 2 % % *! 0 3! 34+ % 9 2 : 2 2 % % *+ -7*. % 9 : 9 2 2 A2 : : 2; : 2 2 2 % : $ : 2 2 @ $ ? *. -7*. 9 2 ?2 ) 2 / ) $2 E2 ))/# 1 , -+D# @ 2 : : 6*F7777777 2 : $ 2 @ 2 2 0 $ 2 @ .77,B8-,8*<B 2 32 !32 /" 32 2 0 3: !03"# ) @ @ 4 3: !)@@3"# 32 ? 3: !?3"# 3 3 32,2 32,2 G 32 others received 10-month sentences and 11 were given ninemonth sentences. That group of 16 were fined an equivalent of A$1.7 million. Mr. O’Connor was released in August. Gambling is illegal in China except in the special administrative region of Macau, and foreign companies aren’t allowed to market their casinos specifically, although they can advertise their resorts more generally. Still, perks to entice VIPs could include free food Legal Notices To advertise: 800-366-3975 or WSJ.com/classiﬁeds PUBLIC NOTICES ! " # $ / 1 *! . ! #+ Crown Resorts faces allegations it misled investors on wooing Chinese high-rollers. ADVERTISEMENT / : 32 / ,, 2 32 / 32 2 32 / 32 32 / / ! " 2 2 2 32 / * through chapter 11 bankruptcy with flying colors and makes good on the $750 million or more of debts, there may be nothing left for equity stakeholders. As for Robert Shapiro, the former chief executive who stepped down recently, Woodbridge is asking to keep him on as a $175,000-a-month consultant and to allow him to stay in his company-owned personal residences in California and Colorado “without fear of foreclosure” as long as the leases remain in effect. Woodbridge said the accommodation with Mr. Shapiro is in the best interests of the company. Mr. Shapiro couldn’t be reached to comment. The SEC has been investigating Woodbridge for more than a year, court papers say, looking into possible securities-law violations including the alleged offer and sale of unregistered securities and the commission of fraud in securities sales. No charges have been brought. # ! ! $% &%& ! $% '& ! $% %& (# & $&)$ # $) $ * # $$( ( # 1 & '&2! &# & '& # 1 ' # !11 ) $% $% & &! $'& %& &$ % & ( & and drink, Chinese-speaking service staff and complimentary hotel suites. Given that the Chinese trial of Crown employees was closed to the public, “this will be the first time that the events that occurred in China will be publicly examined in open court,” Mr. Donelly said. After the arrests, Crown, controlled by Australian billionaire James Packer, signaled it would pull back from its global ambitions. It dialed back its efforts to lure Chinese VIPs to its resorts, sold its stake in a Macau casino operator and exited a Las Vegas casino project. Crown shares have recovered somewhat over the past year, trading Monday at A$12.12, compared with the A$11.15 closing price on Oct. 17, 2016—though the previous trading day, on Oct. 14, 2016, shares had closed at A$12.95. The lawsuit says Crown should have notified investors that its Chinese operations were risky, especially given that employees of South Korean casino operators had been arrested by Chinese authorities in mid-2015. Mr. Donelly said he hoped the case against Crown and other companies would prompt firms to provide more “accurate and timely disclosures to the market.” ly . Real-estate developer Woodbridge Group of Cos. filed for chapter 11 bankruptcy protection as it grapples with questions about its fundraising practices from the Securities and Exchange Commission. The bankruptcy filing means thousands of individual investors, including retirees who helped finance Woodbridge’s real-estate dealings, are at risk of losing hundreds of millions of dollars in Woodbridge’s chapter 11 case. The bankruptcy filing may also send tremors through the Southern California real-estate market, where many of the company’s properties—worth an estimated $650 million to $750 million—are located. GETTY IMAGES BY PEG BRICKLEY challenge the secured status of these notes—some $750 million lent by an estimated 8,998 noteholders, according to papers filed Monday in the U.S. Bankruptcy Court in Wilmington, Del. The company says the investors failed to register their notes properly and so will be classed as unsecured creditors in the bankruptcy. In a press release, the company said the bankruptcy proceeding will be a debt recapitalization. The plight of investors who bought Woodbridge Group units may be even worse. More than 1,500 people bought, in the aggregate, $226 million of units sold by Woodbridge. The unit investors would be classed as equity holders, which occupy the bottom rung of the chapter 11 bankruptcy payment order. A Woodbridge unit-offering document obtained by The Wall Street Journal said the units offered a return of 10% per annum. Unless the company sails #&# # +,-. ,/00 &(1 $3 ! " # 4 $# 5 & $ &$ 1& %$ % * ! 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CFPB Curbs Data Collection BY YUKA HAYASHI WASHINGTON—The Trump administration’s interim director of the Consumer Financial Protection Bureau said he has frozen the agency’s collection of personal information due to cybersecurity concerns, a step in changing policies criticized by the financial industry. Mick Mulvaney, who is splitting his time as acting CFPB director and the White House’s budget chief, on Monday said the decision is part of his effort to improve the agency’s data-security program. The longtime critic of the CFPB was appointed as its acting director by President Donald Trump on Nov. 24, succeeding Richard Cordray, an Obama appointee who left after a six-year tenure at its helm. Critics of the CFPB have long complained about the bureau’s efforts to collect consumer data on credit cards and mortgages through its disclosure rules, consumer complaint database and enforcement actions. They say such actions threaten privacy and information security. CFPB officials have in the past said such data help the agency identify discrimination and other industry misconduct, and can serve as a basis for writing rules. “I am taking data security very, very seriously,” Mr. Mulvaney said in a briefing with reporters. “I think we should find ways to have as rigorous a data-security program as possible here before we start expecting that from people who we oversee out in the industry.” For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. Tuesday, December 5, 2017 | B7 THE WALL STREET JOURNAL. BUSINESS & FINANCE Debt Issuers Across Asia Look Inward More companies in Asia are selling bonds to local investors in U.S. dollars, highlighting the intense demand. U.S. dollar-bond sales by location 100% BY SAUMYA VAISHAMPAYAN U.S. marketed 75 Non-U.S. marketed 50 25 0 2009 ’10 ’11 ’12 ’13 ’14 ’15 ’16 *Through Dec. 4 Source: Dealogic ’17* THE WALL STREET JOURNAL. Companies and governments in Asia are issuing more dollar bonds without tapping investors in the U.S. thanks to robust appetite for such securities at home. Nearly two-thirds of the $313 billion U.S. dollar-bond sales in Asia excluding Japan this year were marketed only outside the U.S., according to data provider Dealogic. It is the highest rate since at least 1995, when 18% of such bond deals were done in this man- ner. Such bond offerings— known as Regulation-S, or Reg-S, deals—allow debt securities to be offered and sold to investors outside the U.S. without being registered under U.S. law. Asian issuers are willing to forgo cash from U.S. investors because there is strong demand for dollar-denominated bonds in their own backyard, according to bankers from Australia & New Zealand Banking Group Ltd. The trend has been more pronounced among companies with below-investment-grade, or “junk,” credit ratings that have historically sought U.S. buyers for their debt, said David Tsai, a partner at law firm Clifford Chance in Hong Kong. “The Asian issuers are mak- Hartford Is Selling Its Annuities Business Hartford Financial Services Group Inc. said it would sell an annuities operation that it has been winding down since 2012 to a group of investors, helping close the door on a painful chapter in the 207year history of Hartford. The Connecticut-based insurer created the unit, Talcott Resolution, several years after the 2008-09 financial crisis to house a business that had made it one of the hardest-hit U.S. life insurers during the market’s steep slide. As a “runoff” business, Talcott services existing insurance contracts but doesn’t sell new products. Hartford said Monday that it would receive total consideration of about $2.05 billion, which includes $1.4 billion in cash, a 9.7% stake in the new company, transferred debt and a preclosing dividend. Hartford expects to book a loss of about $3.2 billion in the fourth quarter because of the deal’s structure. The investors buying Talcott include Cornell Capital LLC, Atlas Merchant Capital LLC, TRB Advisors LP, Global Atlantic Financial Group, Pine Brook and J. Safra Group, Hartford said. At the heart of Talcott is a retirement-savings product called a variable annuity. Hartford had helped turn the product into an industrywide hot seller in the early- to mid-2000s with innovative income-stream guarantees. Variable annuities are a tax-advantaged form of investing in stock and bond funds. If the funds perform poorly, the guarantees kick in, sometimes providing lifetime income. Hartford had so many guarantees on its books when markets slid in 2008 that it had to take $3.4 billion in U.S. government aid to help meet regulatory requirements for backing up its obligations to contract holders. It was one of just three U.S. insurers to take the federal assistance; all have fully repaid the government. Hartford quit selling the annuities in 2012 after retool- ing the product to seek to make it less risky to the insurer, while still attractive to consumers. At the time, it decided to focus more heavily on other operations, including its property-casualty, groupbenefits and mutual-funds businesses. Other insurers also pulled The insurer took a big hit from variable annuities during the 2008 financial crisis. to Guggenheim Partners LLC. As of Sept. 30, Talcott had more than $40 billion of variable-annuity contracts on its books, and more than $7 billion of other types of annuities, according to Hartford’s financial filings. Hartford Chief Executive Christopher Swift has said the insurer wasn’t rushing to sell Talcott because it produces profits, but it would dispose of the unit at the right price. For the third quarter, Hartford said the unit had “core earnings” of $83 million, out of the company’s total core earnings of $222 million. Since the 2008 financial crisis, Hartford has been continuing to reshape its operations. In October, it agreed to pay $1.45 billion to health insurer Aetna Inc. for a unit that provides life-, disabilityincome and other insurance products to employers’ benefits programs in the U.S. Hartford is also a leading seller of car and home insurance to individuals, and workers’ compensation to businesses. out of the variable-annuities market after the crisis. Those seeking buyers found them scarce because of the complexities of the guarantees and the high cost of running financialhedging programs. In 2012, Sun Life Financial Inc., a Canadian insurer, struck one of the industry’s first deals to unload a large volume of the contracts, in a $1.35 billion pact with a company with ties try the best pure cotton white non-iron dress shirt UNBEATABLE INTRODUCTORY OFFER no n- $24.95 reg $89.50 you save liant in funding, thanks in part to an expanding wealthy population in the region, which is now home to the most billionaires in the world. Some of the appetite also comes from Chinese investors with funds outside the mainland that they need to put to work. Australian companies are also catching on. Jimmy Choi, co-head of capital markets at ANZ in Hong Kong, said some Australian debt issuers are trying to take advantage of investor demand in the region by soliciting orders from Asian buyers before heading to the U.S. Eight Australian companies have raised $3.9 billion through Reg-S offerings since the start of 2016, compared with two such deals previously, according to ANZ. Exchange-Traded Portfolios | WSJ.com/ETFresearch Largest 100 exchange-traded funds, latest session ETF Monday, December 4, 2017 Closing Chg YTD Symbol Price (%) (%) AlerianMLPETF CnsmrDiscSelSector CnsStapleSelSector EnSelectSectorSPDR FinSelSectorSPDR GuggS&P500EW HealthCareSelSect IndSelSectorSPDR iShIntermCredBd iSh1-3YCreditBond iSh3-7YTreasuryBd iShCoreMSCIEAFE iShCoreMSCIEmgMk iShCoreMSCITotInt iShCoreS&P500 iShCoreS&P MC iShCoreS&P SC iShS&PTotlUSStkMkt iShCoreUSAggBd iShSelectDividend iShEdgeMSCIMinEAFE iShEdgeMSCIMinUSA iShGoldTr iShiBoxx$InvGrCpBd iShiBoxx$HYCpBd iShJPMUSDEmgBd iShMBSETF iShMSCI ACWI iShMSCIBrazilCap iShMSCI EAFE iShMSCI EAFE SC iShMSCIEmgMarkets iShMSCIEurozone iShMSCIJapan iShNasdaqBiotech iShNatlMuniBd iShRussell1000Gwth iShRussell1000 iShRussell1000Val iShRussell2000Gwth iShRussell2000 iShRussell2000Val iShRussell3000 iShRussellMid-Cap iShRussellMCValue iShS&PMC400Growth iShS&P500Growth iShS&P500Value iShUSPfdStk AMLP XLY XLP XLE XLF RSP XLV XLI CIU CSJ IEI IEFA IEMG IXUS IVV IJH IJR ITOT AGG DVY EFAV USMV IAU LQD HYG EMB MBB ACWI EWZ EFA SCZ EEM EZU EWJ IBB MUB IWF IWB IWD IWO IWM IWN IWV IWR IWS IJK IVW IVE PFF 10.47 97.73 56.72 69.65 28.00 100.26 82.28 74.21 109.28 104.57 122.43 65.29 55.60 62.14 265.98 189.26 77.06 60.54 109.15 98.86 72.39 52.71 12.27 120.91 87.35 115.49 106.43 71.36 39.64 69.58 63.15 45.93 43.49 59.01 104.03 110.18 132.43 147.03 123.67 184.11 152.45 127.69 156.55 206.71 88.82 215.49 150.79 113.45 38.43 –0.48 –16.9 1.16 20.1 9.7 0.25 –0.88 –7.5 1.52 20.4 0.21 15.7 –1.22 19.4 0.84 19.3 1.0 –0.06 –0.09 –0.4 –0.07 –0.1 –0.49 21.7 0.14 31.0 –0.40 23.1 –0.11 18.2 –0.04 14.5 0.05 12.1 –0.13 18.0 1.0 –0.01 0.52 11.6 –0.45 18.2 –0.26 16.6 –0.24 10.7 3.2 0.16 0.9 –0.03 4.8 0.06 0.1 0.02 –0.25 20.6 1.56 18.9 –0.09 20.5 –0.44 26.7 0.20 31.2 0.16 25.7 –0.59 20.8 –1.58 17.6 1.8 0.04 –0.67 26.2 –0.12 18.1 0.45 10.4 –0.88 19.6 –0.37 13.1 7.4 0.23 –0.15 17.7 –0.01 15.6 0.32 10.4 –0.37 18.3 –0.65 23.8 0.60 11.9 3.3 –0.08 co Fo m rp m e er rs ci on al a us l, e on BY LESLIE SCISM AND CARA LOMBARDO ing a decision, along with the investment banks, that there should be sufficient liquidity outside of the U.S. for their high-yield issuances to succeed,” Mr. Tsai said, adding that Reg-S deals can generally be done more quickly than sales offered in the U.S. Most debt issuers appear to be getting along just fine without tapping U.S. investors. In October, China’s dollar-bond sale valued at $2 billion, a Reg-S offering, was heavily oversubscribed by investors in Asia and Europe. Junk-rated property developer China Evergrande Group’s sale of dollar debt valued at $6.6 billion in June was also aimed at investors outside the U.S. The trend indicates that Asia is becoming more self-re- ETF Closing Chg YTD Symbol Price (%) (%) iShTIPSBondETF iSh1-3YTreasuryBd iSh7-10YTreasuryBd iSh20+YTreasuryBd iShRussellMCGrowth PIMCOEnhShMaturity PwrShQQQ 1 PwrShS&P500LoVol PwrShSrLoanPtf SPDR BlmBarcHYBd SPDR Gold SchwabIntEquity SchwabUS BrdMkt SchwabUS Div 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 XtrkrsMSCIEAFE Outsmart Burglars The Moment You Plug It In SimpliSafe is a complete home security arsenal. With motion sensors, glass break sensors, entry sensors, and a high-deﬁnition security camera, you’ll have everything you need to keep your family safe—and 24/7 professional monitoring is only $14.99 a month. 70% • FREE monogramming reg $10.95 • add this pure silk tie for just $19.95 reg $72.50 blue, black, red, yellow, green, orange white 100% wrinkle-free cotton / easy non-iron care 4 collar styles / button or french cuffs regular, big & tall or slim fit sizes paulfredrick.com/best 800-309-6000 use promo code T7HPWC Act now! Holiday deals end soon FREE EXCHANGES. new customer offer. limit 4 shirts. imported. shipping extra. expires 2/28/18. TIP SHY IEF TLT IWP MINT QQQ SPLV BKLN JNK GLD SCHF SCHB SCHD 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 DBEF ly . Both governments and companies are finding strong demand for their dollar bonds Eastern Shift SimpliSafe.com/Wall 113.65 83.93 105.88 126.61 119.02 101.64 152.71 48.11 23.05 36.73 121.18 34.13 63.88 50.65 63.09 243.11 344.92 264.14 96.87 62.49 56.09 22.20 160.91 133.11 100.82 44.25 44.20 58.26 53.77 138.60 153.10 85.19 84.06 87.37 121.31 153.39 110.60 84.17 242.64 79.23 79.43 147.18 81.57 55.11 55.90 135.89 73.29 105.53 64.40 57.64 31.67 0.04 –0.06 –0.05 0.05 –0.50 ... –1.15 0.02 ... –0.05 –0.34 –0.44 –0.16 0.40 –0.16 0.27 –0.03 –0.12 0.84 –1.61 –0.57 –0.29 –1.94 0.38 0.24 –0.41 0.34 –0.12 –0.30 –0.65 –1.41 0.24 –0.07 –0.03 –0.13 –0.05 0.44 –0.50 –0.11 –0.03 –0.11 –0.30 0.01 0.05 –0.36 –0.13 –0.18 0.35 0.36 –0.65 –0.06 0.4 –0.6 1.0 6.3 22.2 0.3 28.9 15.7 –1.3 0.8 10.6 23.3 17.9 16.2 18.5 23.1 14.3 18.2 13.2 29.2 15.5 6.1 32.4 10.0 18.4 21.1 23.5 21.5 21.7 24.3 20.8 12.4 1.2 1.9 18.5 16.5 13.8 2.0 18.2 –0.3 0.1 14.1 1.0 1.5 21.8 17.8 20.1 13.5 12.2 16.4 12.9 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. B8 | Tuesday, December 5, 2017 NEW HIGHS AND LOWS | WSJ.com/newhighs The most expensive Mercedes-Benz® ever made. Rarer than a Stradivarius violin. 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 iShCurHdgMSCIACWI HACW 29.22 0.1 FreseniusMed 52-Wk % Sym Hi/Lo Chg Stock FMS GMS NYSE highs - 292 GMS GabelliEquityRt GABr Not actual size. Shown is model in Pearl White finish. Also available in Ruby Red finish. How to Park $11.7 Million on Your Desktop The 500K Special Roadster is one of the rarest and most-sought after automobiles ever built. I t's hard to deny that one of the signature models of Mercedes-Benz® is the 500 series. So many striking and elegant bodies would grace the stalwart chassis. The 500K's of the 1930s were beautiful, elegant, and exclusive models often outfitted with voluptuous coachwork and sold to the wealthiest of clientele. The most ravishing model of this species was the twoseater 500K Special Roadster launched in 1936. It was a limited production cabriolet, in total less than 30 were made, adding to its near-mythical qualities. In its day it went for top dollar—over $106,000. Today, these ultra rare masterpieces are going for millions. In 2012, a Special Roadster fetched more than $11.7 million metal body features doors, hood at auction at the Pebble Beach Concours d'Elegance. Die-cast and trunk that open, steerable wheels The masters at Maisto® produced this die-cast metal that roll, and four wheel suspension. Available in Ruby Red ﬁnish. replica capturing the sexy curves and sumptuous coachwork of the full-size model in striking detail. Just shy of a foot long, and available in pearl white or ruby red. You don’t need to spend millions to showcase your impeccable taste. Sold! To the discerning reader for $99! Your satisfaction is 100% guaranteed. Test drive the Special Roadster for 30 days. If for any reason you are not completely satisfied, simply return it to us for a full refund of your purchase price. But we’re sure that once you park this beauty in your house you’ll be sold. Comes factory sealed in its original packaging in order to retain its status as a highly collectable item. (Pearl White or Ruby Red finish) $149† Offer Code Price $99 + S&P Save $50 1-800-333-2045 Your Insider Offer Code: MBD334-01 You must use this insider offer code to get our special price. High-quality 1:18 scale die-cast replica • intricate moving features •Detailed chassis with separate exhaust systems • Includes display stand † Special price only for customers using the offer code versus the price on Stauer.com without your offer code. Gannett GCI Gap GPS GeneralCable BGC Genesee&Wyoming GWR Gildan GIL GlobusMedical GMED GraniteConstr GVA GreatPlainsEner GXP HartfordFinl HIG HartfordFinSvcsWt HIG.WS HawaiianElec HE HealthSouth HLS HercHoldings HRI Hillenbrand HI Hilton HLT HomeDepot HD Hubbell HUBB HyattHotels H ITT ITT Ingevity NGVT Ingredion INGR InstalledBldg IBP ICE ICE InterContinentl IHG Invesco MIO OIA InvestorsRE PfdC IRETpC JMP Nts2027 JMPD JPMorganWt JPM.WS JPMorganChase JPM JacobsEngg JEC JohnBeanTech JBT HancockFinlOpp BTO KAR Auction KAR KB Fin KB KB Home KBH KSCitySouthern KSU KeyCorp KEY LCI Inds LCII La-Z-Boy LZB LambWeston LW Lannett LCI Lazard LAZ Lennar B LEN.B Lennar A LEN LennoxIntl LII LifeStorage LSI LincolnNational LNC Loews L Lowe's LOW M&T Bank MTB M&TBankWt MTB.WS MGIC Investment MTG MI Homes MHO MSCI MSCI MagnaIntl MGA MainStayMuniFd MMD MarathonPetrol MPC Marsh&McLen MMC Masco MAS MaxarTech MAXR Maximus MMS McDonalds MCD MetropolitanBk MCB MichaelKors KORS MitsubishiUFJ MTU Moelis MC MohawkInds MHK MolinaHealthcare MOH MonmouthRealEst MNR Moody's MCO MorganStanley MS MurphyUSA MUSA NatlStorage NSA Navistar pfD NAVpD NeenahPaper NP NewHome NWHM NewMediaInvt NEWM NexPointCreditFd NHF NorfolkSouthern NSC Northwestern NWE NuvDow30Dyn DIAX NuvTaxAdDivGr JTD OM AssetMgmt OMAM Oppenheimer A OPY OwensCorning OC PGT Innovations PGTI PJT Partners PJT PNC Fin Wt PNC.WS PNC Fin PNC PNM Resources PNM POSCO PKX ParkerHannifin PH PeabodyEnergy BTU PebblebrookHotel PEB PerformanceFood PFGC Phillips66 PSX Progressive PGR ProPetro PUMP PrudentialFin PRU PublicStoragePfD PSApD PublicStoragePfE PSApE PublicStoragePfdF PSApF QuantaServices PWR RadianGroup RDN RaymondJames RJF 51.54 38.08 0.10 11.95 34.30 29.75 81.73 32.31 41.70 67.40 34.56 58.61 53.33 38.72 50.41 61.96 46.00 78.62 186.31 129.21 73.33 54.79 80.18 140.85 79.40 72.99 59.94 8.11 25.80 25.30 67.21 108.40 67.69 120.55 38.41 50.92 55.55 31.47 114.85 19.93 132.00 34.25 55.16 30.14 50.99 52.16 63.94 213.78 91.25 78.44 51.02 88.48 176.62 101.36 15.40 36.92 130.58 56.82 20.45 64.32 86.54 43.79 66.03 70.43 173.48 45.14 59.61 7.15 48.85 286.85 80.74 18.45 153.86 53.37 81.30 26.93 18.90 90.65 13.20 17.62 24.19 141.81 64.47 18.42 17.34 16.74 28.65 91.40 16.50 45.63 78.34 145.66 46.00 79.20 190.00 34.47 38.96 31.25 99.35 54.54 19.62 117.99 25.28 25.13 25.48 39.20 21.94 91.29 2.4 1.5 -1.2 2.9 6.6 35.1 1.5 -2.5 6.8 0.1 -0.5 -1.6 -0.2 0.4 0.9 1.6 ... 0.5 2.5 3.2 0.2 0.5 -0.1 0.3 ... -0.3 0.2 1.1 0.5 0.8 3.6 2.1 1.9 -0.8 2.2 0.9 1.4 -1.1 2.8 2.6 -1.1 1.5 0.2 -0.5 3.2 0.9 0.7 0.3 0.5 1.3 0.3 4.5 1.6 6.2 2.5 -0.2 -1.1 -1.6 -0.5 0.7 1.1 1.9 0.1 -0.6 -1.3 1.6 1.4 1.0 0.1 -0.1 -0.8 1.1 0.3 1.4 2.4 -0.6 ... 0.7 0.9 0.6 1.6 1.7 -0.4 0.6 0.1 -0.4 3.7 2.9 0.3 3.2 3.5 2.0 -0.2 3.5 -0.6 -0.8 1.1 5.4 ... 1.4 -1.3 1.2 0.4 0.1 0.6 3.8 1.8 2.1 RayonierAdvMatls RYAM RegionsFin RF RexfordIndPfdB REXRpB RobertHalf RHI RosettaStone RST RoyceValue RVT RymanHospitality RHP S&P Global SPGI SPX FLOW FLOW SantanderCons SC SchwabC SCHW ServiceCorp SCI ServiceMaster SERV ShakeShack SHAK SherwinWilliams SHW SimpsonMfg SSD SiteOneLandscape SITE SixFlags SIX SkechersUSA SKX SonocoProducts SON SouthwestGas SWX SpecialOpFd SPE Spire SR StanleyBlackDck SWK SterlingBancorp STL StifelFinancial SF SunComms SUI SunLifeFinancial SLF SunTrustBanksWtA STI.WS.A SunTrustBanksWtB STI.WS.B SunTrustBanks STI SutherlandAsset SLD SynovusFin SNV Sysco SYY TCF Fin TCF TCF Fin Wt TCF.WS TelecomArgentina TEO TVA Bds D TVC Teradata TDC Textron TXT 3M MMM Tiffany TIF Toll Bros TOL TransUnion TRU Travelers TRV Tri-Continental TY TrinityIndustries TRN Triple-S Mgmt GTS TylerTech TYL TysonFoods TSN USG USG Unifirst UNF UnionPacific UNP UPS B UPS UnitedRentals URI UnitedHealth UNH UnumGroup UNM Valhi VHI ValmontInds VMI VarianMed VAR VectorGroup VGR Verso VRS Vonage VG VoyaFinancial VOYA WasteMgt WM Waters WAT Watsco WSO WattsWater WTS WebsterFin WBS WestAllianceBcp WAL WestlakeChem WLK WestRock WRK WildHorseResource WRD WW Ent WWE Wyndham WYN Xylem XYL YumBrands YUM Zoetis ZTS 19.14 17.12 25.09 57.67 12.40 16.24 70.77 169.00 46.12 18.73 51.89 37.58 50.49 42.46 410.66 61.62 75.66 66.55 36.43 55.77 86.87 16.20 82.85 170.90 26.48 60.92 95.44 40.91 30.93 20.60 64.61 16.20 51.09 59.66 21.29 4.35 38.54 25.97 38.28 56.47 244.23 98.64 51.08 56.44 137.95 26.84 36.55 29.43 184.38 84.65 38.91 168.05 132.00 125.16 163.92 231.77 57.49 6.99 176.35 113.58 23.11 12.25 10.49 45.75 83.93 201.95 171.15 75.28 59.25 60.25 99.71 63.63 17.76 29.34 114.13 69.88 84.29 72.79 -1.1 1.8 0.3 1.0 -2.5 -0.4 0.4 0.8 0.2 3.8 4.1 0.8 1.8 1.4 3.0 1.2 -0.9 -0.4 -0.8 3.1 -0.7 0.2 ... 0.6 2.8 3.4 1.4 0.3 9.6 9.9 3.9 -0.9 1.0 3.0 2.0 7.8 -0.2 1.4 0.7 0.5 -0.8 -1.8 2.0 -1.1 0.1 ... 1.6 1.1 1.1 1.4 0.6 1.3 4.4 2.8 1.7 -2.4 1.0 1.7 0.4 -2.5 1.2 2.4 -1.6 1.7 1.6 -1.8 1.5 0.6 2.5 1.2 -1.4 1.7 -2.0 1.2 0.5 -0.3 -0.1 -1.8 NYSE lows - 28 ® 14101 Southcross Drive W., Dept. MBD334-01 Burnsville, Minnesota 55337 www.stauer.com Rating of A+ ARCDocumentSolns ARC AXIS Capital AXS AllerganPfdA AGNpA Allergan AGN BEST BSTI BlkrkMuni2018 BPK CONSOL Energy CEIX Cannae CNNE ChinaOnlineEduc COE ChinaRapidFin XRF Despegar.com DESP DeutscheStratMuni KSM Doubleline Oppor DBL GNC Holdings GNC HugotonRoyalty HGT InvescoHiIncm2023 IHIT MFS Intermd MIN MaidenHldg6.7%PfdD MHpD Natuzzi NTZ NordicAmerTankers NAT NuvCT QualMuni NTC RubiconProject RUBI SandRidgeMS II SDR ScorpioTankers STNG SocialCapHed IPOA SocialCapHedWt IPOA.WS Sogou SOGO Switch SWCH 25.08 25.72 69.84 32.30 46.07 31.25 30.67 71.77 169.53 41.79 15.83 37.77 26.64 31.60 32.23 98.37 226.08 32.72 53.82 31.73 43.45 69.50 95.44 35.55 48.92 28.50 45.43 49.64 35.87 50.97 36.41 74.09 36.51 19.05 74.40 85.76 44.00 168.00 30.69 28.70 30.56 38.91 41.39 38.48 34.83 31.61 31.71 32.57 28.20 42.21 49.19 21.91 22.16 22.12 31.69 69.96 23.38 40.13 39.09 42.70 30.27 67.99 31.38 49.27 111.60 44.14 43.57 44.84 49.22 31.29 28.16 29.47 26.44 31.41 53.27 47.43 34.07 99.84 132.58 101.06 44.60 119.65 110.10 66.17 155.94 69.22 63.06 29.47 31.52 67.05 22.39 43.07 189.27 11.28 36.15 64.90 52.12 31.06 28.87 25.16 75.10 28.07 25.79 55.44 34.89 45.91 90.09 38.60 268.65 191.55 78.34 61.20 0.7 1.9 0.4 -1.9 0.4 1.5 0.4 1.2 0.8 0.1 2.0 1.2 0.5 1.1 1.4 1.2 -1.3 3.0 1.6 ... 0.5 1.6 2.1 3.1 -0.1 0.1 -0.4 ... 1.6 2.6 ... -1.0 5.5 1.4 1.1 2.3 0.3 1.9 0.3 0.5 0.3 0.9 1.5 0.6 0.9 -1.3 0.3 0.8 1.5 1.4 1.2 0.5 1.2 1.6 0.4 -1.5 0.3 0.5 0.3 0.6 0.7 -0.9 0.6 0.3 0.1 0.7 1.1 0.6 0.1 -0.2 0.8 -0.1 0.9 0.1 -0.1 0.1 1.2 1.8 1.7 0.2 1.3 0.8 0.8 0.6 -0.6 0.6 -0.2 10.4 ... -0.1 0.7 -0.5 -0.1 0.1 0.3 0.5 0.1 0.1 ... 0.9 0.8 -0.1 0.4 -0.3 0.4 ... 0.7 ... -0.1 ... 0.1 -0.1 iShUSConsumerGoods IYK iShUSFinlServices IYG iShUS Finls IYF iShUSHealthcarePrv IHF iShU.S.Insurance IAK iShUSRegionalBanks IAT iShEdgeMSCIUSASC SMLF iShEdgeMSCIUSASize SIZE iShACWILowCarbon CRBN iShMSCICanadaETF EWC iShMSCIFrontier100 FM iShMSCIGlblAgriPrd VEGI 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RFFC SPDRGlobalDow DGT SPDRMFSSysCore SYE 2.51 -4.9 51.11 -0.9 595.74 -1.6 166.06 -1.8 9.24 -2.4 14.93 -0.3 19.55 -7.9 16.16 -7.2 10.65 -5.8 5.10 -13.6 22.73 -3.4 11.78 -0.5 22.11 -1.2 5.03 -2.4 1.48 ... 9.94 -0.4 4.09 -1.4 23.25 -2.7 1.53 -3.1 3.89 -2.5 11.90 -0.1 1.73 0.6 1.17 -0.8 3.06 2.6 9.89 -0.2 1.42 -4.5 10.85 -1.4 16.23 -2.8 101.06 177.96 126.06 130.89 120.41 158.23 68.07 50.93 40.38 84.19 116.87 29.52 33.40 28.99 98.00 110.98 55.45 87.97 159.85 155.67 105.66 185.81 202.15 175.00 153.18 134.50 148.55 124.58 188.57 155.41 129.59 158.29 97.35 208.85 89.57 72.98 61.31 52.35 118.31 218.64 152.90 69.99 114.27 108.84 161.62 156.65 133.69 63.55 30.44 37.11 34.99 34.87 34.70 34.30 71.48 30.18 25.85 53.14 60.17 33.63 26.32 27.51 31.88 30.93 69.48 51.09 60.97 71.14 36.97 27.60 35.01 39.35 43.90 95.56 113.44 41.49 47.71 31.12 52.70 39.09 27.49 42.90 48.48 35.14 34.00 42.03 30.37 33.93 46.85 19.86 56.02 52.08 72.00 48.04 79.52 130.10 130.00 71.77 125.19 73.11 108.55 101.93 92.10 107.83 118.06 86.89 138.31 33.44 23.71 32.60 83.98 75.09 0.7 1.1 0.7 1.3 0.7 -0.8 0.4 1.7 -0.2 0.3 -0.2 -0.5 0.6 -0.3 -0.2 0.1 0.4 -0.3 0.1 -1.2 1.1 0.2 -0.3 1.5 0.7 -0.7 -0.1 0.5 -0.9 -0.4 0.2 -0.1 -0.5 ... 0.3 -0.8 ... 0.7 ... -0.4 -0.7 0.7 0.6 0.6 0.2 0.2 -0.1 1.5 2.7 1.1 0.7 0.2 2.0 -0.1 0.1 0.8 3.7 1.2 1.0 0.7 0.5 0.8 0.6 2.4 1.9 0.8 0.5 1.0 1.5 0.9 0.8 0.4 0.6 -0.8 0.4 -1.4 0.5 -0.1 0.4 0.7 -0.1 0.2 ... 1.2 ... 0.6 0.4 -0.4 0.3 0.7 0.1 1.8 1.5 1.5 2.5 0.5 1.4 0.7 -0.3 -0.7 -0.2 2.5 0.8 4.6 -0.2 -0.8 -0.4 0.3 0.2 ... 0.7 1.2 Continued On Page B9 no n- Stauer 2.5 0.6 0.3 0.2 0.5 1.1 0.2 0.7 -5.0 1.9 2.1 0.4 -0.4 0.5 -0.6 1.3 -0.1 -0.2 2.7 24.5 6.2 3.4 0.2 0.8 -0.7 -0.1 1.0 1.5 1.2 1.2 0.2 2.3 2.4 0.6 1.9 0.6 ... -0.4 2.3 2.5 2.5 4.6 0.4 2.1 1.2 1.1 0.9 -0.8 -1.4 -2.9 0.2 2.1 ... -2.8 -1.9 -0.3 1.1 1.1 2.1 2.9 2.4 1.6 2.6 -1.3 0.4 -2.2 -0.7 ... 0.3 3.1 0.7 0.1 0.5 3.2 1.4 0.7 3.1 ... 1.9 1.8 0.7 ... 1.8 ... 2.1 0.4 1.4 1.0 1.0 2.3 2.0 2.1 0.3 0.4 1.5 -0.8 0.9 3.6 -2.2 1.1 -1.1 -0.1 1.9 1.5 -3.4 2.0 co Fo m rp m e er rs ci on al a us l, e on 1936 Mercedes-Benz® 500K Special Roadster 42.49 AAR AIR 88.74 Aflac AFL AlexandriaRlEst ARE 130.46 81.24 Allete ALE 104.10 Allstate ALL 27.94 AllyFinancial ALLY 78.07 AEP AEP 99.17 AmerExpress AXP 11.89 AmRltyInv ARL Ameriprise AMP 166.99 31.28 ArcelorMittal MT 15.72 ArmadaHoffler AHH ArtisanPtrsAsset APAM 40.65 AtHomeGroup HOME 30.00 93.56 AtmosEnergy ATO 51.11 BB&T BBT 11.13 BRT Apartments BRT BWX Tech BWXT 62.85 34.45 BancorpSouth BXS BankofAmWtB BAC.WS.B 2.05 BankofAmWtA BAC.WS.A 17.24 29.31 BankofAmerica BAC BankofAmPfdI BACpI 26.87 BankofAmPfdL BACpL1337.00 40.80 BankofButterfield NTB BankofMontreal BMO 78.93 55.40 BankNY Mellon BK BerkHathwy A BRK.A 299080 BerkHathwy B BRK.B 199.48 BerryGlobal BERY 61.30 16.10 BlkRkCapEnIncoFd CII 515.60 BlackRock BLK 281.83 Boeing BA 39.85 BoiseCascade BCC BostonBeer SAM 189.40 10.90 BoulderGrowth BIF 33.02 BoydGaming BYD 52.42 Brown&Brown BRO 62.20 Brown-Forman B BF.B 62.70 Brown-Forman A BF.A BurlingtonStrs BURL 113.00 22.93 BylineBancorp BY 44.00 CBRE Group CBG 51.19 CIT Group CIT 25.83 CNO Financial CNO CadenceBancorp CADE 25.71 57.04 CalAtlantic CAA 96.64 CIBC CM 180.34 CanPacRlwy CP CantelMedical CMD 108.00 CapitalOnePfdG COFpG 25.50 116.53 Carlisle CSL 145.19 Caterpillar CAT Centene CNC 103.15 Chemed CHE 251.00 ChesapeakeLodging CHSP 29.36 Chevron CVX 122.30 79.80 ChoiceHotels CHH 77.92 Citigroup C 42.52 CitizensFin CFG 143.18 Clorox CLX 86.78 Comerica CMA ComericaWt CMA.WS 57.25 17.77 Cott COT 17.30 CreditSuisse CS 125.00 CurtissWright CW 19.58 CushingRenaissance SZC 62.98 DST Systems DST 116.74 DTE Energy DTE DeckersOutdoor DECK 77.76 152.68 Deere DE 10.92 DE InvDivInco DDF 13.66 Dividend&IncomeFd DNI 92.11 DollarGeneral DG 49.00 Domtar UFS 98.60 Dover DOV 113.30 DycomInds DY 81.88 EMCOR EME EagleMaterials EXP 114.96 56.74 EatonVance EV 22.83 EtnVncTxAdvDiv EVT 12.08 EtnVncTxMgdEqu ETY 137.79 Ecolab ECL 44.97 EmergentBiosol EBS 89.58 EnPro NPO 25.32 EntergyMS Bds EMP 7.60 Entravision EVC 91.51 EquityLife ELS EssentGroup ESNT 46.15 9.00 Euronav EURN 90.70 EvercoreA EVR EvoquaWater AQUA 23.22 44.08 FB Financial FBK 54.10 FCB Financial FCB FactSet FDS 204.66 FairIsaac FICO 159.00 34.18 FederatedInvest FII FedEx FDX 243.06 40.75 FidNatlFin FNF 15.67 FirstCmwlthFin FCF 32.91 FirstIndRlty FR 15.87 FT EnhEquity FFA 38.70 Flagstar FBC 186.04 FleetCorTech FLT 22.70 Forestar FOR FortBrandsHome FBHS 69.61 52-Wk % Sym Hi/Lo Chg AAMS&PEMHiDivVal EEMD AAMS&P500HiDivV SPDV ALPS EqSecWgh EQL ALPSMedBreak SBIO ALPSSectorDivDogs SDOG AdvShFocusedEqu CWS AdvShStrGlbBW VEGA AdvShWilshireBuybk TTFS BarcETN+FIEnhGlHY FIGY Barrons400ETF BFOR BrandValueETF BVAL CambriaShareholder SYLD ClearSharesOCIO OCIO ColumbiaSustGlb ESGW ColumbiaSustUSEqu ESGS CnsmrDiscSelSector XLY CS FI LC Grwth FLGE DeepValueETF DVP DeltaShS&P500Mgd DMRL DiamondHillVal DHVW DirexAllCapIns KNOW DirexFinlBull3 FAS DirexHmbldrBull3 NAIL DirexIndlsBl3 DUSL DirexMcBull3 MIDU DirexPharmBl3X PILL DirexS&P500Bl3 SPXL DirexS&P500Bull2X SPUU DirexS&P500Bl1.25 LLSP DirexSCBull2 SMLL DirexScBl1.25 LLSC DirexSCBull3 TNA DirexTransportBl3 TPOR ETF Exposure TETF DJ 2xSelect Div DVYL S&P2xDivAristoETN SDYL EcoLogicalStrat HECO FIEnhancedGlbHiYd FIEG FidelityDivRising FDRR FidelityHiDiv FDVV FidelityLowVol FDLO FidelityMSCICnDisc FDIS FidelityMSCIFinls FNCL FidelityMSCIIndls FIDU FidelityMSCIMatls FMAT FidelityMomFactor FDMO FidelityQualFactor FQAL FidelityValFactor FVAL FinSelSectorSPDR XLF FT ConsDscAlpDx FXD FT ConsStaples FXG FT Dow30EW EDOW EqCompassRiskMgr ERM EqCompassTactical TERM FT FinlsAlpDx FXO FT HlthCareAlpha FXH FTHorizonMgdVolDom HUSV FT IndlsAlpDx FXR FT Long/Short FTLS FT MatAlpDX FXZ FT MngstrDiv FDL FT USEquityOpp FPX FT ValDivFd FVD FT Water FIW FlexMrnUSMktFtrTlt TILT FlexShQualDivDef QDEF FlexShQualDivDyn QDYN FlexShQualityDiv QDF FlexShSTOXXGlb NFRA FranklinGlbEquity FLQG FranklinIntlEquity FLQH GlbX GuruIndex GURU GlbX JPM US SecRot SCTO GlbXSciBetaUS SCIU GSActiveBetaUSLC GSLC GuggDefEqty DEF GuggDJIA Div DJD GuggS&P500EWCD RCD GuggS&P500EWCnStp RHS GuggS&P500EW RSP GuggS&P500EWFin RYF GuggS&P500EWIndl RGI GuggS&P500EWMat RTM GuggS&P500PrVal RPV GuggS&P400PrGrwth RFG GuggS&P400PureVal RFV GuggInsider NFO GuggLC OptDiv OPD GuggGlbTimber CUT GuggMC Core CZA GuggMltiAstIncm CVY GuggRayJamesSB1 RYJ GuggS&P500Top50 XLG GuggS&PGlbl LVL GuggS&PGlblWtr CGW GuggS&PMC400EW EWMC GuggS&PSpinOff CSD HartfordMultiUSEqu ROUS HullTacticalUS HTUS IQMacKayShMuni MMIN IndSelSectorSPDR XLI InspireGlblHope BLES Inspire100ETF BIBL iShAggrAllocation AOA iShCoreDivGrowth DGRO iShGrwthAllocation AOR iShCoreHiDividend HDV iShModAllocation AOM iShCoreS&P500 IVV iShCoreS&P MC IJH iShCoreS&P SC IJR iShS&PTotlUSStkMkt ITOT ly . 52-Wk % Sym Hi/Lo Chg Stock 52-Wk % Sym Hi/Lo Chg IYM NYSE Arca highs - 341 iShUSBasicMaterial iShUSConsumerSvcs IYC Monday, December 4, 2017 Stock 52-Wk % Sym Hi/Lo Chg Stock Our Reality in Waiting From defeating superbugs and hurricanes to understanding the Bitcoin enigma, season 2 of The Future of Everything series explores the challenges and possibilities of our impending way of life. ApplePodcasts.com/FOE Proudly Sponsored By © 2017 Dow Jones & Company, Inc. All rights reserved. 6DJ6039 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Tuesday, December 5, 2017 | B9 BIGGEST 1,000 STOCKS 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. Net Sym Close Chg NYSE ABB ABB 25.73 0.07 AECOM ACM 37.99 0.30 AES AES 10.77 0.10 s Aflac AFL 88.14 0.54 AGCO AGCO 72.22 -0.17 AT&T T 37.27 0.77 AbbottLabs ABT 54.71 -1.27 AbbVie ABBV 95.22 -1.10 Accenture ACN 147.15 0.58 AcuityBrands AYI 172.18 5.17 Adient ADNT 78.10 -0.30 AdvanceAuto AAP 104.02 4.74 AdvSemiEngg ASX 6.40 -0.07 Aegon AEG 6.18 0.04 AerCap AER 51.98 -0.16 Aetna AET 178.70 -2.61 AffiliatedMgrs AMG 197.36 -0.49 AgilentTechs A 66.24 -2.45 AgnicoEagle AEM 43.17 -0.54 Agrium AGU 106.69 -3.23 AirProducts APD 162.40 0.76 AlaskaAir ALK 68.28 1.37 Albemarle ALB 129.35 -2.80 Alcoa AA 41.79 0.15 s AlexandriaRlEst ARE 129.03 0.34 Alibaba BABA 169.58 -5.03 Alleghany Y 585.00 3.98 Allegion ALLE 83.43 -1.15 t Allergan AGN 166.90 -3.04 AllianceData ADS 238.17 4.14 AlliantEnergy LNT 44.69 -0.14 AllisonTransm ALSN 41.21 0.24 s Allstate ALL 103.62 0.52 s AllyFinancial ALLY 27.56 0.31 AlticeUSA ATUS 18.36 -0.08 Altria MO 70.08 1.50 AlumofChina ACH 16.63 0.41 Ambev ABEV 6.28 0.06 Ameren AEE 63.09 -0.66 AmericaMovil AMX 17.07 0.04 AmericaMovil A AMOV 17.05 -0.01 AmCampus ACC 42.75 -0.05 s AEP AEP 77.39 0.15 s AmerExpress AXP 98.59 0.73 AmericanFin AFG 105.82 ... AmerHomes4Rent AMH 21.59 0.03 AIG AIG 59.26 -0.62 AmerTowerREIT AMT 138.97 -4.64 AmerWaterWorks AWK 91.32 0.10 s Ameriprise AMP 165.55 3.08 AmerisourceBrgn ABC 87.42 2.47 Ametek AME 71.79 -0.30 Amphenol APH 88.46 -1.34 AnadarkoPetrol APC 48.59 -0.13 Andeavor ANDV 106.97 2.54 AndeavorLog ANDX 46.45 0.01 AB InBev BUD 115.41 -0.05 AnnalyCap NLY 11.99 0.19 AnteroResources AR 18.61 -0.78 Anthem ANTM 224.95 -6.69 Aon AON 139.67 -2.57 Apache APA 43.21 -1.01 ApartmtInv AIV 43.94 -0.05 ApolloGlbMgmt APO 31.05 0.10 AquaAmerica WTR 37.67 -0.08 Aramark ARMK 42.76 -0.31 s ArcelorMittal MT 31.13 0.64 ArcherDaniels ADM 41.20 0.37 Arconic ARNC 24.73 0.23 AristaNetworks ANET 209.48-19.17 ArrowElec ARW 77.71 -1.49 AstraZeneca AZN 32.17 -0.68 Athene ATH 46.69 -0.62 s AtmosEnergy ATO 91.70 -0.54 Autohome ATHM 55.59 -0.01 Autoliv ALV 127.35 -2.26 AutoZone AZO 709.77 31.37 Avalonbay AVB 181.12 -0.21 Avangrid AGR 52.29 -0.43 AveryDennison AVY 112.02 -0.61 AxaltaCoating AXTA 32.33 1.30 s BB&T BBT 50.24 0.64 BCE BCE 48.42 0.02 BHPBilliton BHP 42.10 0.14 BHPBilliton BBL 36.70 0.03 BP BP 39.91 -0.04 BRF BRFS 11.85 0.02 BT Group BT 17.48 -0.01 s BWX Tech BWXT 61.76 -0.12 BakerHughes BHGE 31.71 1.01 Ball BLL 40.65 0.91 BancoBilbaoViz BBVA 8.49 ... BancodeChile BCH 82.40 -0.61 BancoMacro BMA 104.50 1.34 BcoSantChile BSAC 27.11 -0.34 BancoSantander SAN 6.57 -0.02 Stock Net Sym Close Chg BanColombia CIB 38.29 -0.20 s BankofAmerica BAC 29.06 0.96 s BankofMontreal BMO 78.28 -0.09 s BankNY Mellon BK 54.97 0.52 BkNovaScotia BNS 64.24 -0.21 Barclays BCS 10.38 0.12 Bard CR BCR 332.55 -3.51 BarrickGold ABX 13.91 -0.16 BaxterIntl BAX 64.25 -1.24 BectonDicknsn BDX 218.92 -7.41 Berkley WRB 69.75 0.23 s BerkHathwy A BRK.A2954904489.80 s BerkHathwy B BRK.B 196.96 2.40 s BerryGlobal BERY 60.79 0.71 BestBuy BBY 62.55 2.20 Bio-RadLab A BIO 257.49-11.31 BlackKnight BKI 44.80 -0.35 BlackBerry BB 10.44 -0.35 s BlackRock BLK 513.50 11.42 Blackstone BX 32.11 0.53 s Boeing BA 277.97 6.59 BorgWarner BWA 54.24 -0.77 BostonProps BXP 127.84 0.71 BostonSci BSX 24.90 -1.25 Braskem BAK 27.62 -0.29 Bristol-Myers BMY 62.47 -0.77 BritishAmTob BTI 64.95 0.21 BroadridgeFinl BR 90.17 0.04 BrookfieldMgt BAM 41.92 -0.27 BrookfieldInfr BIP 43.66 0.10 s Brown&Brown BRO 51.53 -0.22 s Brown-Forman A BF.A 62.57 1.50 s Brown-Forman B BF.B 62.09 1.39 BuckeyePtrs BPL 47.40 0.73 Bunge BG 67.49 0.35 s BurlingtonStrs BURL 111.55 2.77 CBD Pao CBD 22.33 0.65 s CBRE Group CBG 43.37 0.18 CBS A CBS.A 61.51 5.21 CBS B CBS 60.10 2.99 CF Industries CF 36.90 -0.69 CGI Group GIB 52.76 -0.31 s CIT Group CIT 50.57 1.05 CMS Energy CMS 49.76 0.02 CNA Fin CNA 54.40 0.01 CNOOC CEO 136.99 -0.12 CPFLEnergia CPL 11.69 -0.41 CRH CRH 35.13 0.43 CVS Health CVS 71.69 -3.43 CabotOil COG 28.57 -0.11 s CalAtlantic CAA 56.18 0.50 CamdenProperty CPT 91.96 0.19 CampbellSoup CPB 50.32 1.10 s CIBC CM 94.75 -0.72 CanNtlRlwy CNI 79.19 0.52 CanNaturalRes CNQ 34.85 -0.39 s CanPacRlwy CP 175.68 -2.44 Canon CAJ 37.78 -0.18 CapitalOne COF 94.89 2.17 CardinalHealth CAH 61.02 2.12 s Carlisle CSL 115.91 2.34 CarMax KMX 70.71 2.33 Carnival CCL 67.25 1.25 Carnival CUK 67.20 1.15 s Caterpillar CAT 141.50 -0.02 Celanese A CE 106.80 0.31 Cemex CX 7.44 -0.07 CenovusEnergy CVE 9.78 -0.34 s Centene CNC 98.28 -2.82 CenterPointEner CNP 29.36 -0.17 CentraisElBras EBR 5.86 0.16 CenturyLink CTL 14.81 0.51 Chemours CC 49.44 -2.40 s Chevron CVX 120.84 1.33 ChinaEastrnAir CEA 30.36 1.31 ChinaLifeIns LFC 16.12 0.01 ChinaMobile CHL 50.17 -0.25 ChinaPetrol SNP 71.42 0.50 ChinaSoAirlines ZNH 45.71 1.87 ChinaTelecom CHA 48.99 0.70 ChinaUnicom CHU 14.37 -0.10 Chipotle CMG 315.60 8.01 Chubb CB 150.82 -0.82 ChunghwaTel CHT 34.39 -0.03 Church&Dwight CHD 48.35 1.51 Cigna CI 204.11 -4.30 CimarexEnergy XEC 112.80 -4.09 s Citigroup C 77.10 1.59 s CitizensFin CFG 41.85 1.16 s Clorox CLX 142.99 3.35 Coca-Cola KO 46.23 0.26 Coca-Cola Euro CCE 39.73 -0.02 Coca-Cola Femsa KOF 69.92 1.55 ColgatePalm CL 74.52 1.48 ColonyNorthStar CLNS 12.07 -0.06 s Comerica CMA 85.11 1.33 SABESP SBS 10.26 0.28 ConagraBrands CAG 37.93 0.46 ConchoRscs CXO 139.19 -2.27 Stock Net Sym Close Chg ConocoPhillips COP 51.29 ConEd ED 88.48 ConstBrands A STZ 216.34 ConstBrands B STZ.B 216.00 ContinentalRscs CLR 47.81 Cooper COO 229.74 Corning GLW 32.21 Coty COTY 17.56 Credicorp BAP 209.11 s CreditSuisse CS 17.20 CrownCastle CCI 109.63 CrownHoldings CCK 60.19 Cullen/Frost CFR 96.57 Cummins CMI 164.96 s DTE Energy DTE 115.53 DXC Tech DXC 93.22 Danaher DHR 92.82 Darden DRI 86.06 DaVita DVA 61.93 s Deere DE 150.97 DellTechs DVMT 74.89 DelphiAuto DLPH 104.30 DeltaAir DAL 52.91 DeutscheBank DB 19.12 DevonEnergy DVN 38.64 Diageo DEO 139.90 DigitalRealty DLR 110.59 DiscoverFinSvcs DFS 73.44 Disney DIS 110.22 DolbyLab DLB 61.82 s DollarGeneral DG 90.77 DominionEner D 83.55 Domino's DPZ 187.62 Donaldson DCI 48.50 DouglasEmmett DEI 40.44 s Dover DOV 97.54 DowDuPont DWDP 72.13 DrPepperSnap DPS 93.10 DrReddy'sLab RDY 34.90 DukeEnergy DUK 88.62 DukeRealty DRE 27.85 ENI E 32.81 EOG Rscs EOG 101.05 EQT EQT 59.65 EastmanChem EMN 91.40 Eaton ETN 76.41 s EatonVance EV 56.48 s Ecolab ECL 137.26 Ecopetrol EC 11.90 EdisonInt EIX 80.26 EdwardsLife EW 113.80 EmersonElec EMR 65.10 EnbridgeEnPtrs EEP 14.36 Enbridge ENB 38.31 Encana ECA 11.90 EnelAmericas ENIA 10.08 EnelGenChile EOCC 25.57 EnergyTransferEq ETE 16.73 EnergyTransfer ETP 16.85 Entergy ETR 84.37 EnterpriseProd EPD 24.99 Equifax EFX 113.40 s EquityLife ELS 91.13 EquityResdntl EQR 66.30 EssexProp ESS 246.28 EsteeLauder EL 125.34 EverestRe RE 213.56 EversourceEner ES 65.48 Exelon EXC 41.56 ExtraSpaceSt EXR 84.85 ExxonMobil XOM 83.57 FMC FMC 91.47 s FactSet FDS 204.49 FederalRealty FRT 133.57 s FedEx FDX 239.05 Ferrari RACE 104.34 FiatChrysler FCAU 17.18 FibriaCelulose FBR 13.60 s FidNatlFin FNF 39.69 FidNatlInfo FIS 93.63 58.com WUBA 66.98 FirstAmerFin FAF 55.28 FirstData FDC 15.97 FirstRepBank FRC 95.81 FirstEnergy FE 32.58 s FleetCorTech FLT 183.60 Fluor FLR 49.39 FomentoEconMex FMX 93.24 FordMotor F 12.63 ForestCIty A FCE.A 24.08 Fortis FTS 37.14 Fortive FTV 74.23 s FortBrandsHome FBHS 68.89 Franco-Nevada FNV 78.60 FranklinRscs BEN 44.62 FreeportMcM FCX 14.30 s FreseniusMed FMS 50.95 GGP GGP 23.63 Gallagher AJG 66.58 Mutual Funds | WSJ.com/fundresearch Explanatory Notes -0.45 -0.34 -2.26 -2.04 -0.66 -8.36 0.36 0.51 -2.11 0.07 -2.92 0.68 -1.27 -0.05 0.32 -2.36 -1.00 1.02 0.82 1.03 -5.07 0.79 0.85 0.14 -0.20 0.68 -8.22 2.32 4.97 -0.20 2.79 -0.02 3.00 0.09 -0.10 0.66 1.12 2.84 0.13 -0.11 -0.43 -0.21 -1.86 0.08 -0.58 -1.29 0.99 2.37 0.12 -0.50 -2.61 0.41 -0.41 0.02 -0.21 0.03 0.44 0.31 0.32 -1.15 -0.06 0.47 0.93 -0.23 -0.76 0.57 -4.50 0.05 -0.27 -0.35 0.11 -2.46 3.04 1.03 8.21 -3.13 0.09 -0.05 -0.89 -0.12 -5.43 -0.24 -0.32 0.13 -1.18 2.76 0.93 0.56 0.05 -0.10 -0.25 -0.35 1.37 -2.05 1.14 0.19 1.19 0.04 0.01 s Gap GPS 34.09 GardnerDenver GDI 31.45 Gartner IT 121.25 Gazit-Globe GZT 10.54 GeneralDynamics GD 201.69 GeneralElec GE 17.95 GeneralMills GIS 57.86 GeneralMotors GM 43.05 Genpact G 32.25 GenuineParts GPC 93.96 s Gildan GIL 31.18 GSK GSK 35.00 GlobalPayments GPN 95.96 GoDaddy GDDY 47.32 Goldcorp GG 12.56 GoldmanSachs GS 250.65 Graco GGG 128.70 Grainger GWW 227.50 s GreatPlainsEner GXP 34.17 GrubHub GRUB 66.94 GpoAeroportuar PAC 104.44 GpoAvalAcc AVAL 8.27 GpFinSantMex BSMX 7.86 GrupoTelevisa TV 18.78 HCA Healthcare HCA 84.27 HCP HCP 26.40 HDFC Bank HDB 94.21 HP HPQ 21.08 HSBC HSBC 49.34 Halliburton HAL 43.89 Hanesbrands HBI 21.15 HarleyDavidson HOG 51.81 Harris HRS 141.69 s HartfordFinl HIG 56.50 HealthcareAmer HTA 30.49 Heico HEI 88.79 Heico A HEI.A 74.45 Helm&Payne HP 58.43 Herbalife HLF 67.66 Hershey HSY 112.82 Hess HES 46.57 HewlettPackard HPE 14.23 s Hilton HLT 77.66 HollyFrontier HFC 44.31 s HomeDepot HD 184.90 HondaMotor HMC 33.40 Honeywell HON 153.77 HormelFoods HRL 37.68 DR Horton DHI 50.58 HostHotels HST 19.86 HuanengPower HNP 25.50 s Hubbell HUBB 128.29 Humana HUM252.28 HuntingIngalls HII 234.31 Huntsman HUN 31.81 s HyattHotels H 72.60 ICICI Bank IBN 9.35 ING Groep ING 18.09 Invesco IVZ 36.88 IQVIA IQV 101.27 IDEX IEX 133.59 IllinoisToolWks ITW 166.22 Infosys INFY 15.46 Ingersoll-Rand IR 85.12 s Ingredion INGR 140.09 s ICE ICE 71.83 s InterContinentl IHG 59.35 IBM IBM 156.46 IntlFlavors IFF 154.34 IntlPaper IP 56.88 Interpublic IPG 20.68 InvitatHomes INVH 23.47 IronMountain IRM 40.53 IsraelChemicals ICL 4.11 ItauUnibanco ITUB 12.89 s JPMorganChase JPM 106.95 s JacobsEngg JEC 66.69 JamesHardie JHX 16.46 JanusHenderson JHG 36.03 J&J JNJ 139.01 JohnsonControls JCI 37.43 JonesLang JLL 150.93 JuniperNetworks JNPR 27.96 s KAR Auction KAR 50.65 s KB Fin KB 54.75 KKR KKR 19.95 KT KT 15.74 s KSCitySouthern KSU 113.44 Kellogg K 67.54 s KeyCorp KEY 19.63 KeysightTechs KEYS 41.90 KilroyRealty KRC 75.21 KimberlyClark KMB 123.11 KimcoRealty KIM 19.09 KinderMorgan KMI 17.25 Knight-Swift KNX 42.87 Kohl's KSS 50.15 KoninklijkePhil PHG 38.32 KoreaElcPwr KEP 17.45 Kroger KR 26.88 Kyocera KYO 69.00 LATAMAirlines LTM 12.54 L Brands LB 57.10 LG Display LPL 13.78 LINE LN 42.52 L3 Tech LLL 192.94 LabCpAm LH 157.91 s LambWeston LW 54.95 LasVegasSands LVS 69.78 s Lazard LAZ 50.74 Lear LEA 177.00 Leggett&Platt LEG 48.30 Leidos LDOS 63.46 s Lennar A LEN 62.98 s Lennar B LEN.B 51.18 s LennoxIntl LII 209.03 LeucadiaNatl LUK 26.39 LibertyProperty LPT 44.75 EliLilly LLY 85.58 s LincolnNational LNC 77.50 LionsGate A LGF.A 33.16 LionsGate B LGF.B 31.56 Data provided by Top 250 mutual-funds listings based on total net assets for Nasdaq-published share classes. NAV is net asset value. Percentage performance figures are total returns, assuming reinvestment of all distributions and after subtracting annual expenses. Figures don’t reflect sales charges (“loads”) or redemption fees. NET CHG is change in NAV from previous trading day. YTD%RET is year-to-date return. f-Previous day’s quotation. p-Distribution costs apply, 12b-1. r-Redemption charge may apply. t-Footnotes p and r apply. NA-Not available due to incomplete price, performance or cost data. NE-Not released by Lipper; data under review. NNFund not tracked. NS-Fund didn’t exist at start of period. BlackRock Funds A -0.45 29.7 GlblAlloc p 20.43 BlackRock Funds Inst -0.23 19.6 EqtyDivd 23.70 +0.05 16.6 GlblAlloc 20.56 -0.02 13.9 HiYldBd 7.81 ... 3.2 StratIncOpptyIns 9.93 -0.02 13.1 Bridge Builder Trust -0.12 22.0 CoreBond NA -0.18 28.3 Dimensional Fds -0.10 20.6 5GlbFxdInc 11.01 -0.43 23.2 EmgMktVa 30.38 +0.01 6.7 EmMktCorEq 22.45 -0.01 17.5 IntlCoreEq 14.25 +0.03 11.7 IntlVal 20.01 -0.23 27.2 IntSmCo 21.53 -0.48 31.9 IntSmVa 23.36 -0.25 28.8 US CoreEq1 22.72 -0.37 24.3 US CoreEq2 21.61 +0.01 5.0 US Small 37.49 +0.07 18.4 US SmCpVal 39.93 26.00 US TgdVal ... NA USLgVa 40.41 -0.01 4.4 Dodge & Cox n- American Century Inv 45.23 Ultra American Funds Cl A 32.10 AmcpA p 42.33 AMutlA p 27.83 BalA p 12.91 BondA p CapIBA p 63.60 52.68 CapWGrA EupacA p 56.67 64.46 FdInvA p 51.80 GwthA p HI TrA p 10.42 42.07 ICAA p IncoA p 23.69 44.93 N PerA p 47.41 NEcoA p NwWrldA 66.28 57.14 SmCpA p TxExA p 13.00 46.68 WshA p Baird Funds AggBdInst NA 11.23 CorBdInst Net YTD NAV Chg % Ret Balanced 111.43 +0.31 14.10 +0.05 13.85 ... 46.01 +0.04 208.58 +0.85 DoubleLine Funds NA ... TotRetBdI Edgewood Growth Instituti EdgewoodGrInst 29.34 -0.52 Federated Instl 6.54 +0.01 StraValDivIS Fidelity 500IdxInst 92.62 -0.09 500IdxInstPrem 92.61 -0.10 500IdxPrem 92.61 -0.10 ExtMktIdxPrem r 64.14 -0.22 IntlIdxPrem r 43.30 -0.11 SAIUSLgCpIndxFd 14.20 -0.01 76.80 -0.11 TMktIdxF r TMktIdxPrem 76.79 -0.11 ... USBdIdxInstPrem 11.59 Fidelity Advisor I NwInsghtI 33.59 -0.32 Fidelity Freedom -0.04 12.4 GblStock Income +0.10 16.1 Intl Stk -0.04 12.6 Stock no Fund Monday, December 4, 2017 Net YTD Net YTD NAV Chg % Ret Fund NAV Chg % Ret Fund ... ... 7.7 4.3 ... NA -0.01 +0.06 +0.04 -0.06 -0.07 -0.10 -0.10 +0.01 +0.04 +0.08 +0.16 +0.11 +0.19 2.1 28.6 31.2 24.4 22.2 25.9 23.5 19.3 17.4 11.5 7.3 9.2 16.8 New Highs and Lows | WSJ.com/newhighs 52-Wk % 52-Wk % Sym Hi/Lo Chg Stock Sym Hi/Lo Chg 52-Wk % Stock Sym Hi/Lo Chg SPDR DJIA Tr DIA 245.57 0.3 WBITacticalLCV WBIF 28.59 1.1 SPDRMFSSysGrowth SYG SPDRMFSSysValueEqu SYV SPDRMSCIACWIIMI ACIM SPDRMSCICAStrat QCAN SPDRMSCIUSAStrat QUS SPDRMSCIWorldStrat QWLD SPDRPortfolioLC SPLG SPDRPtfMC SPMD SPDRS&P500Value SPYV SPDRS&P500Growth SPYG SPDRS&P500HiDiv SPYD SPDRPtfSC SPSM SPDR Ptf TSM SPTM SPDRRuss1000LowVol ONEV SPDRRuss1000Mom ONEO SPDRRuss1000Yd ONEY SPDRMomentumTilt MMTM SPDRS&P1500ValTilt VLU SPDR S&P500MidGr MDYG SPDR S&P400MidVl MDYV SPDRS&P600SmallCap SLY SPDR S&P600SCpGr SLYG SPDR S&P600SCapVal SLYV SPDRS&PBank KBE SPDRS&PCapitalMkts KCE SPDRS&P500Buyback SPYB SPDRS&P500Fossil SPYX SPDRS&PGlbDividend WDIV SPDRS&PInsurance KIE SPDRS&PRegionalBkg KRE SPDRS&PTransport XTN SPDRGenderDivers SHE SPDR US LC Low Vol LGLV SPDRSSgAIncmAllctn INKM SPDRSSgAMultiAsset RLY SchwabFundUSBrd FNDB SchwabFundUSLrgCo FNDX SchwabFundUSSmCo FNDA Schwab1000Index SCHK SchwabUS BrdMkt SCHB SchwabUS Div SCHD SchwabUS LC SCHX SchwabUS LC Grw SCHG SchwabUS LC Val SCHV SchwabUS MC SCHM SchwabUS SC SCHA SerenityShImpact ICAN 78.68 66.91 78.80 61.10 77.47 75.48 31.33 34.05 30.90 33.04 38.11 30.65 33.23 76.75 77.42 75.13 115.84 104.65 159.37 104.79 137.42 240.64 133.39 48.95 58.01 62.15 64.84 70.45 31.48 61.26 64.71 73.24 93.94 33.78 26.02 37.16 37.32 38.36 26.23 64.58 50.96 63.74 70.48 54.78 53.53 70.88 26.97 -0.6 2.4 0.3 -0.2 0.1 1.1 -0.1 ... 0.6 -0.7 0.3 -0.1 -0.1 0.8 0.8 1.3 0.4 1.3 -0.4 0.4 0.2 -0.2 0.3 1.7 1.6 2.0 0.2 -0.1 0.1 1.7 1.2 ... 0.2 0.3 -0.3 0.3 0.4 0.2 -0.1 -0.2 0.4 -0.2 -0.5 0.2 -0.2 -0.2 ... SPDR S&PMdCpTr MDY SPDR S&P 500 SPY SPDR S&P Div SDY SPDR S&P Home XHB UBS FIEnhGlbHY FIHD USAA USA SC Val USVM VanEckAgribus MOO VanEckCoal KOL VanEckMornWideMoat MOAT VanEckNatRscs HAP VanEckOilRefin CRAK VanEckRetail RTH VanEckVietnam VNM VangdExtMkt VXF VangdMatrls VAW VangdCnsmrDiscr VCR VangdSC Val VBR VangdSC Grwth VBK VangdDivApp VIG VangdFinls VFH VangdGrowth VUG VangdHiDiv VYM VangdIndls VIS VangdLC VV VangdMegaCap MGC VangdMegaGrwth MGK VangdMegaVal MGV VangdMC VO VangdMC Val VOE VangdS&P500 VOO VangdS&P500 Grw VOOG VangdS&P500Val VOOV VangdS&PMC400 IVOO VangdS&P400Grwth IVOG VangdS&P400Val IVOV VangdS&P600 VIOO VangdS&P600Grwth VIOG VangdS&P600Val VIOV VangdSC VB VangdTotalStk VTI VangdTotlWrld VT VangdValue VTV VelocityLgLIBOR ULBR VirtusWMCGlb VGFO WBIPwrFactorHiDiv WBIY WBITacticalHiIncm WBIH WBITacticalLCGD WBIE WBITacticalLCQ WBIL 349.16 266.80 97.39 44.49 188.88 51.63 61.49 15.54 42.50 36.59 29.64 90.65 17.47 112.81 135.77 155.50 134.67 162.42 101.60 71.15 140.47 85.83 141.42 122.50 91.66 111.21 76.58 154.93 111.50 245.07 137.42 110.05 129.32 135.61 124.20 143.09 148.51 134.94 149.58 137.38 73.92 106.43 29.84 25.82 26.81 25.00 25.72 27.33 ... -0.1 0.8 1.1 0.5 -0.5 -0.5 -0.2 0.3 0.5 0.8 1.6 2.3 -0.3 0.9 1.0 0.4 -0.9 0.2 1.5 -0.6 0.2 0.8 -0.1 -0.2 -0.6 0.3 ... 0.4 -0.1 -0.6 0.6 -0.1 -0.3 0.4 0.1 -0.1 0.4 -0.3 -0.1 -0.2 0.4 ... 1.6 2.1 0.2 0.5 0.2 Net Sym Close Chg LiveNationEnt LYV 43.66 -1.04 LloydsBanking LYG 3.56 0.01 LockheedMartin LMT 311.78 -1.79 s Loews L 50.65 0.16 s Lowe's LOW 88.04 3.81 LyondellBasell LYB 103.81 0.61 s M&T Bank MTB 172.25 2.78 MGM Resorts MGM 34.22 0.20 MPLX MPLX 35.64 -0.49 s MSCI MSCI 127.57 -1.38 Macerich MAC 65.20 0.98 Macy's M 25.80 1.61 MagellanMid MMP 67.73 -0.35 s MagnaIntl MGA 55.46 -0.91 Manpower MAN 127.03 0.02 ManulifeFin MFC 21.16 -0.11 MarathonOil MRO 14.90 -0.18 s MarathonPetrol MPC 63.30 0.46 Markel MKL 1112.46 0.05 s Marsh&McLen MMC 85.97 0.91 MartinMarietta MLM 208.44 5.79 s Masco MAS 43.30 0.80 Mastercard MA 143.43 -6.26 McCormick MKC 104.48 1.63 McCormickVtg MKC.V 102.27 0.70 s McDonalds MCD 170.65 -2.22 McKesson MCK 153.09 6.70 Medtronic MDT 79.87 -1.40 Merck MRK 56.22 0.35 MetLife MET 53.62 0.01 MettlerToledo MTD 606.80-17.84 s MichaelKors KORS 58.79 0.81 MicroFocus MFGP 32.68 -0.33 MidAmApt MAA 102.52 -0.32 s MitsubishiUFJ MTU 7.11 0.07 MizuhoFin MFG 3.62 ... MobileTeleSys MBT 9.81 -0.20 s MohawkInds MHK 284.65 -0.17 MolsonCoors B TAP 80.51 1.30 Monsanto MON 118.61 -0.32 s Moody's MCO 151.75 0.45 s MorganStanley MS 52.68 0.73 Mosaic MOS 23.70 -0.58 MotorolaSol MSI 93.63 0.60 NRG Energy NRG 27.41 -0.54 NTTDoCoMo DCM 25.39 -0.25 NVR NVR 3456.42-23.58 NationalGrid NGG 59.95 -0.09 NatlOilwell NOV 33.98 -0.11 NatlRetailProp NNN 41.95 0.18 NewOrientalEduc EDU 84.69 0.41 NY CmntyBcp NYCB 13.63 0.37 NewellBrands NWL 31.81 0.30 NewfieldExpln NFX 31.40 -0.48 NewmontMin NEM 36.84 -0.35 NextEraEnergy NEE 155.97 -1.50 NielsenHoldings NLSN 37.61 1.38 Nike NKE 60.10 0.22 NiSource NI 27.03 -0.30 NobleEnergy NBL 26.84 -0.16 Nokia NOK 4.74 -0.21 NomuraHoldings NMR 5.87 0.02 Nordstrom JWN 47.26 1.76 s NorfolkSouthern NSC 139.89 2.39 NorthropGrum NOC 300.56 0.93 Novartis NVS 84.88 -1.17 NovoNordisk NVO 51.04 -0.95 Nucor NUE 58.82 1.52 OGE Energy OGE 35.05 -0.18 ONEOK OKE 52.29 0.18 OccidentalPetrol OXY 70.06 -0.18 Olin OLN 34.58 -0.40 Omnicom OMC 74.70 1.32 Oracle ORCL 48.40 -1.21 Orange ORAN 16.87 -0.05 OrbitalATK OA 132.77 0.49 Orix IX 84.42 -1.18 Oshkosh OSK 92.10 3.21 s OwensCorning OC 90.21 2.55 PG&E PCG 53.52 -0.61 PLDT PHI 28.33 -0.63 s PNC Fin PNC 143.84 2.84 s POSCO PKX 78.46 2.62 PPG Ind PPG 117.56 1.63 PPL PPL 35.96 -0.31 PVH PVH 134.28 -3.03 PackagingCpAm PKG 118.91 1.51 PaloAltoNtwks PANW 142.89 -0.88 ParkHotels PK 28.74 -0.07 s ParkerHannifin PH 185.85 -1.20 ParsleyEnergy PE 26.66 -0.78 Pearson PSO 9.54 -0.06 PembinaPipeline PBA 34.83 -0.30 Pentair PNR 69.16 -1.03 PepsiCo PEP 117.46 0.68 PerkinElmer PKI 69.78 -3.34 Perrigo PRGO 86.30 -0.70 PetroChina PTR 67.82 0.16 PetroleoBrasil PBR 9.94 0.08 PetroleoBrasilA PBR.A 9.56 -0.02 Pfizer PFE 36.06 -0.29 PhilipMorris PM 104.61 0.90 s Phillips66 PSX 97.53 -0.04 PinnacleFoods PF 58.21 0.75 PinnacleWest PNW 90.21 -0.80 PioneerNatRscs PXD 156.35 -0.81 PlainsAllAmPipe PAA 20.20 0.04 PlainsGP PAGP 21.13 0.35 PolarisIndustries PII 124.13 -1.98 Potash POT 19.01 -0.64 Praxair PX 153.36 1.49 PrincipalFin PFG 70.85 0.33 Procter&Gamble PG 91.41 -0.36 s Progressive PGR 54.36 0.76 Prologis PLD 65.94 -0.25 s PrudentialFin PRU 116.76 1.36 Prudential PUK 49.15 -0.27 PublicServiceEnt PEG 52.89 -0.18 PublicStorage PSA 209.97 -2.10 PulteGroup PHM 34.44 0.50 s QuantaServices PWR 38.80 1.41 QuestDiag DGX 100.24 1.03 WBITacticalLCY WBIG WBITacticalSMGD WBIA WBITacticalSMQ WBID WBITacticalSMV WBIB WisdTrCBOES&P500 PUTW WisdTrGlbHiDiv DEW WisdTrUSDivxFin DTN WisdTrUSEarn500 EPS WisdTrUSExport WEXP WisdTrUSHiDiv DHS WisdTrUSLCDivFd DLN WisdTrUSLCValueFd EZY WisdTrUSMCDivFd DON WisdTrUSMCEarn EZM WisdTrUSSCDiv DES WisdTrUSTotalDivFd DTD WisdTrUSTotalEarn EXT WorkplaceEquality EQLT XtrkrsRussell2000 DESC 11.3 18.4 4.2 20.8 16.4 NA 32.1 14.3 20.1 20.1 20.1 16.9 22.7 20.1 19.5 19.5 3.3 25.8 Fund Net YTD NAV Chg % Ret Fund FF2020 FF2025 FF2030 Freedom2020 K Freedom2025 K Freedom2030 K Freedom2035 K Freedom2040 K 16.85 14.60 18.31 16.86 14.60 18.32 15.39 10.82 Net Sym Close Chg Stock RELX RENX 22.86 -0.07 RELX RELX 23.50 -0.12 RPM RPM 53.87 1.43 RSP Permian RSPP 36.68 -1.07 RalphLauren RL 99.71 4.11 s RaymondJames RJF 90.11 1.87 Raytheon RTN 185.54 -1.35 RealtyIncome O 55.34 -0.21 RedHat RHT 120.31 -4.95 RegencyCtrs REG 68.60 0.54 s RegionsFin RF 16.95 0.30 ReinsGrp RGA 161.71 1.00 RelianceSteel RS 81.62 3.05 RepublicSvcs RSG 65.03 0.81 ResMed RMD 83.57 -0.68 RestaurantBrands QSR 60.95 -1.97 RioTinto RIO 48.29 -0.01 s RobertHalf RHI 56.66 0.58 Rockwell ROK 190.78 0.32 RockwellCollins COL 132.84 -0.06 RogersComm B RCI 51.72 -0.50 Rollins ROL 46.10 -0.60 RoperTech ROP 261.87 1.27 RoyalBkCanada RY 79.80 -0.01 RoyalBkScotland RBS 7.48 0.05 RoyalCaribbean RCL 125.08 -0.15 RoyalDutchA RDS.A 64.15 -0.02 RoyalDutchB RDS.B 65.69 -0.08 SAP SAP 111.44 -0.34 s S&P Global SPGI 167.46 1.29 SINOPEC SHI 58.07 0.19 SK Telecom SKM 27.46 0.08 SLGreenRealty SLG 103.95 1.92 Salesforce.com CRM 99.85 -3.98 Sanofi SNY 44.16 -0.46 s SantanderCons SC 18.03 0.66 Sasol SSL 31.40 -0.26 Scana SCG 44.33 0.07 Schlumberger SLB 64.60 -0.13 s SchwabC SCHW 51.55 2.05 SealedAir SEE 48.12 0.38 SemicondctrMfg SMI 6.97 -0.13 SempraEnergy SRE 120.49 0.01 SensataTech ST 47.56 -1.10 s ServiceCorp SCI 37.27 0.29 s ServiceMaster SERV 50.08 0.88 ServiceNow NOW 113.62 -9.04 ShawComm B SJR 22.92 -0.11 s SherwinWilliams SHW 406.93 11.86 ShinhanFin SHG 44.48 0.90 Shopify SHOP 96.62 -6.65 SimonProperty SPG 163.67 1.32 SmithAO AOS 62.20 -0.61 Smith&Nephew SNN 35.68 -0.17 Smucker SJM 119.39 3.78 Snap SNAP 13.57 -0.30 SnapOn SNA 173.32 5.07 SOQUIMICH SQM 52.57 -1.84 Sony SNE 45.78 0.22 Southern SO 50.33 -0.78 SoCopper SCCO 43.12 0.36 SouthwestAir LUV 62.03 2.11 SpectraEnerPtrs SEP 40.41 -0.69 SpectrumBrands SPB 114.07 -0.14 SpiritAeroSys SPR 84.00 1.03 Sprint S 5.95 -0.02 Square SQ 36.87 -1.35 s StanleyBlackDck SWK 169.81 1.08 StateStreet STT 97.10 1.62 Statoil STO 20.39 0.14 Steris STE 89.47 -0.18 STMicroelec STM 21.89 -0.31 Stryker SYK 152.36 -3.51 SumitomoMits SMFG 8.12 -0.03 s SunComms SUI 95.02 1.29 s SunLifeFinancial SLF 40.49 0.14 SuncorEnergy SU 34.45 -0.65 s SunTrustBanks STI 64.36 2.39 SynchronyFin SYF 37.45 1.51 Syngenta SYT 92.43 0.03 s SynovusFin SNV 50.13 0.52 s Sysco SYY 59.53 1.75 TAL Education TAL 27.33 -0.66 TE Connectivity TEL 92.87 -0.86 Telus TU 37.65 0.07 TIM Part TSU 18.20 0.23 TJX TJX 77.00 1.65 TaiwanSemi TSM 39.39 -0.31 Tapestry TPR 41.65 0.11 TargaResources TRGP 44.80 -0.37 Target TGT 62.56 3.05 TataMotors TTM 31.13 0.36 TechnipFMC FTI 28.91 -0.34 TeckRscsB TECK 23.53 0.22 Net Sym Close Chg Stock s TelecomArgentina TEO 35.99 -0.09 TelecomItalia TI 8.33 0.07 TelecomItalia A TI.A 6.92 0.06 TeledyneTech TDY 181.92 -1.57 Teleflex TFX 252.98-12.60 TelefonicaBras VIV 14.96 0.12 Telefonica TEF 10.07 -0.16 TelekmIndonesia TLK 30.85 0.21 Tenaris TS 30.07 0.36 Teradyne TER 39.24 -0.87 TevaPharm TEVA 15.05 -0.21 s Textron TXT 55.18 0.29 ThermoFisherSci TMO 182.03-10.17 ThomsonReuters TRI 44.28 -0.26 ThorIndustries THO 148.67 -2.92 s 3M MMM 239.26 -1.89 s Tiffany TIF 95.54 -1.71 TimeWarner TWX 92.71 1.41 s Toll Bros TOL 50.66 0.99 Torchmark TMK 89.40 0.87 Toro TTC 66.25 0.77 TorontoDomBk TD 57.81 0.02 Total TOT 56.35 -0.23 TotalSystem TSS 73.10 -0.78 ToyotaMotor TM 123.92 -0.44 TransCanada TRP 48.64 0.08 TransDigm TDG 275.01 -4.86 s TransUnion TRU 55.03 -0.62 s Travelers TRV 136.36 0.15 TurkcellIletism TKC 9.49 ... TurquoiseHill TRQ 3.00 ... Twitter TWTR 20.40 -0.31 s TylerTech TYL 183.71 1.92 s TysonFoods TSN 83.56 1.17 UBS Group UBS 17.36 -0.16 UDR UDR 39.29 0.07 UGI UGI 48.98 0.36 US Foods USFD 30.10 0.79 UltraparPart UGP 21.91 0.39 Unilever UN 57.36 0.16 Unilever UL 56.00 0.14 s UnionPacific UNP 130.08 5.46 UnitedContinental UAL 62.59 0.02 UnitedMicro UMC 2.62 0.04 s UPS B UPS 123.72 3.41 s UnitedRentals URI 159.75 2.66 US Bancorp USB 55.63 0.73 UnitedTech UTX 120.04 -0.08 s UnitedHealth UNH 221.42 -5.36 UniversalHealthB UHS 106.26 -1.80 s UnumGroup UNM 57.02 0.54 VEREIT VER 7.87 -0.01 VF VFC 71.22 -0.57 Visa V 107.43 -3.30 VailResorts MTN 220.86 -2.85 Vale VALE 11.32 0.42 ValeantPharm VRX 17.49 0.24 ValeroEnergy VLO 83.63 -0.54 Vantiv VNTV 71.87 -3.26 s VarianMed VAR 109.56 -2.85 Vectren VVC 68.68 -0.24 Vedanta VEDL 17.87 0.17 VeevaSystems VEEV 57.25 -2.21 Ventas VTR 62.82 -1.99 Verizon VZ 51.72 0.47 VistraEnergy VST 18.57 -0.16 VMware VMW 115.09 -9.35 VornadoRealty VNO 77.32 -0.60 s VoyaFinancial VOYA 45.09 0.75 VulcanMatls VMC 125.25 4.04 WABCO WBC 144.73 -2.80 WEC Energy WEC 68.58 -0.56 W.P.Carey WPC 71.01 -0.15 WPP WPP 88.26 -0.01 Wabtec WAB 77.60 1.30 Wal-Mart WMT 97.01 -0.34 WasteConnections WCN 69.13 0.22 s WasteMgt WM 83.15 1.34 s Waters WAT 194.67 -3.49 s Watsco WSO 168.51 2.52 Wayfair W 71.90 1.67 WellCareHealth WCG 203.23 -8.12 WellsFargo WFC 57.39 1.19 Welltower HCN 67.13 -0.83 WestPharmSvcs WST 99.39 0.28 WestarEnergy WR 56.54 -0.34 s WestAllianceBcp WAL 58.92 0.72 WesternGasEquity WGP 36.38 -0.12 WesternGasPtrs WES 45.57 -0.39 WesternUnion WU 19.71 ... s WestlakeChem WLK 97.19 -1.35 WestpacBanking WBK 23.57 -0.38 s WestRock WRK 63.47 1.07 Net Sym Close Chg Stock Weyerhaeuser WY 35.13 WheatonPrecMet WPM 20.96 Whirlpool WHR 169.63 Williams WMB 29.05 WilliamsPartners WPZ 36.93 Wipro WIT 5.12 WooriBank WF 44.41 s Wyndham WYN 112.21 XPO Logistics XPO 76.33 XcelEnergy XEL 51.08 Xerox XRX 29.37 s Xylem XYL 68.77 YPF YPF 22.99 s YumBrands YUM 83.31 YumChina YUMC 41.05 ZTO Express ZTO 15.83 ZayoGroup ZAYO 34.67 ZimmerBiomet ZBH 114.82 s Zoetis ZTS 71.02 -0.27 -0.02 2.17 -0.24 -0.08 -0.03 0.17 0.54 -1.66 -0.28 -0.35 -0.24 0.05 -0.09 0.48 -0.17 -0.68 0.25 -1.28 NASDAQ AGNC Invt AGNC 20.32 0.30 Ansys ANSS 142.01 -4.53 ASML ASML 169.33 -3.10 Abiomed ABMD 189.57 -5.03 ActivisionBliz ATVI 58.60 -3.36 AdobeSystems ADBE 168.44-11.08 AdvMicroDevices AMD 10.03 -0.70 AkamaiTech AKAM 56.44 0.65 AlexionPharm ALXN 111.75 2.79 AlignTech ALGN 225.80-28.27 Alkermes ALKS 54.58 0.88 AlnylamPharm ALNY 128.01 -9.30 Alphabet C GOOG 998.68-11.49 Alphabet A GOOGL 1011.87-13.20 Altaba AABA 68.31 -1.79 Amazon.com AMZN 1133.95-28.40 Amdocs DOX 65.24 0.23 Amerco UHAL 383.89 5.50 AmerAirlines AAL 49.93 0.93 Amgen AMGN 178.69 1.49 AnalogDevices ADI 84.79 -0.61 Apple AAPL 169.80 -1.25 ApplMaterials AMAT 49.77 -2.14 ArchCapital ACGL 93.63 -1.23 Atlassian TEAM 44.28 -2.73 Autodesk ADSK 107.95 0.89 ADP ADP 114.81 1.06 BOK Fin BOKF 90.17 1.62 Baidu BIDU 229.66 -5.41 BankofOzarks OZRK 47.92 0.25 Biogen BIIB 317.40 -1.95 BioMarinPharm BMRN 83.62 -1.38 BlueBuffaloPet BUFF 30.29 0.08 bluebirdbio BLUE 162.30 -8.80 BrighthouseFin BHF 58.49 0.05 Broadcom AVGO 263.61 -7.95 CA CA 33.28 0.09 CDK Global CDK 69.54 0.78 CDW CDW 70.14 1.00 s CH Robinson CHRW 86.76 0.22 s CME Group CME 153.41 2.62 s CSX CSX 56.99 0.85 CadenceDesign CDNS 42.42 -1.30 CaesarsEnt CZR 12.93 -0.32 Carlyle CG 20.55 0.50 Cavium CAVM 85.71 0.30 s CboeGlobalMkts CBOE 123.11 -1.14 Celgene CELG 102.61 0.47 CentennialRsc CDEV 19.94 -0.67 Cerner CERN 69.79 -0.38 CharterComms CHTR 334.00 -2.27 CheckPoint CHKP 102.65 -1.65 ChinaLodging HTHT 109.92 2.39 CincinnatiFin CINF 75.37 0.85 s Cintas CTAS 158.71 1.21 CiscoSystems CSCO 37.72 0.12 CitrixSystems CTXS 86.77 -1.58 Cognex CGNX 63.31 -5.94 CognizantTech CTSH 70.32 -1.04 Coherent COHR 274.15-15.42 Comcast A CMCSA 40.32 1.89 s CommerceBcshrs CBSH 57.15 0.50 CommScope COMM 36.59 0.52 s Copart CPRT 42.99 -0.02 CoStar CSGP 295.77 -6.24 s Costco COST 189.56 4.43 s CreditAcceptance CACC305.88 1.61 Ctrip.com CTRP 46.12 -0.20 DISH Network DISH 51.60 1.28 DentsplySirona XRAY 65.75 -0.33 DiamondbkEner FANG 109.02 -1.89 DiscovComm C DISCK 19.52 1.12 Net Sym Close Chg Stock DiscovComm A DISCA 20.85 1.39 s DollarTree DLTR 106.37 3.36 s E*TRADE ETFC 50.54 1.65 EXACT Sci EXAS 55.18 -2.77 s EastWestBncp EWBC 62.18 0.85 eBay EBAY 35.70 0.50 EchoStar SATS 59.54 -0.81 ElbitSystems ESLT 139.61 1.25 ElectronicArts EA 100.83 -5.19 Equinix EQIX 442.28-26.88 Ericsson ERIC 6.22 -0.03 Exelixis EXEL 27.57 -0.55 Expedia EXPE 122.24 -0.46 s ExpeditorsIntl EXPD 64.93 0.46 ExpressScripts ESRX 68.16 3.75 F5Networks FFIV 132.53 -0.18 Facebook FB 171.47 -3.63 s Fastenal FAST 54.88 2.70 s FifthThirdBncp FITB 31.36 0.67 FirstSolar FSLR 57.27 -3.03 s Fiserv FISV 132.24 1.83 Flex FLEX 18.04 0.03 FlirSystems FLIR 46.25 -0.18 s Fortinet FTNT 41.54 -0.65 Gaming&Leisure GLPI 35.76 -0.38 Garmin GRMN 60.85 -0.38 Gentex GNTX 20.78 0.19 GileadSciences GILD 73.09 -2.25 Goodyear GT 32.07 -0.05 Grifols GRFS 22.15 -0.05 s GpoFinGalicia GGAL 58.24 ... HD Supply HDS 36.49 0.26 Hasbro HAS 92.14 0.30 HenrySchein HSIC 71.21 0.55 Hologic HOLX 41.85 1.00 s JBHunt JBHT 110.20 1.19 s HuntingtonBcshs HBAN 14.70 0.26 IAC/InterActive IAC 121.93 -2.36 IdexxLab IDXX 159.30 4.30 IHSMarkit INFO 44.44 -0.27 IPG Photonics IPGP 200.80-23.33 IRSA Prop IRCP 56.50 0.62 IcahnEnterprises IEP 52.55 -0.34 Icon ICLR111.97 -4.58 Illumina ILMN 213.45-11.79 t Incyte INCY 93.68 -4.26 Intel INTC 44.49 -0.19 s InteractiveBrkrs IBKR 58.91 0.83 Intuit INTU 154.54 -1.90 IntuitiveSurgical ISRG 369.95-26.71 IonisPharma IONS 52.26 -4.67 JD.com JD 36.75 -0.52 JackHenry JKHY 115.48 1.45 JazzPharma JAZZ 136.56 -1.63 JetBlue JBLU 21.97 0.66 JunoTherap JUNO 54.66 -2.04 KLA Tencor KLAC 100.88 -2.99 KraftHeinz KHC 81.92 0.71 LKQ LKQ 39.28 -0.04 LamResearch LRCX180.74 -7.07 LamarAdv LAMR 76.14 0.33 LibertyBroadbandA LBRDA 87.62 -0.20 LibertyBroadbandC LBRDK 89.00 0.17 LibertyGlobal C LBTYK 31.31 0.52 LibertyGlobal A LBTYA 32.16 0.46 LibertyLiLAC A LILA 21.04 -0.47 LibertyLiLAC C LILAK 20.88 -0.29 LibertyQVC B QVCB 24.75 -0.05 LibertyQVC A QVCA 24.96 0.24 LibertyVenturesA LVNTA 57.31 0.09 LibertyFormOne C FWONK 34.98 -0.87 LibertyFormOne A FWONA 33.35 -0.89 LibertyBraves A BATRA 22.56 0.12 LibertyBraves C BATRK 22.55 0.16 LibertySirius C LSXMK 42.64 0.52 LibertySirius A LSXMA 42.65 0.53 LincolnElectric LECO 90.83 0.42 LogitechIntl LOGI 33.13 -1.18 LogMeIn LOGM 113.50 -3.20 lululemon LULU 67.22 ... MarketAxess MKTX 197.19 1.84 s Marriott MAR 127.73 0.87 MarvellTech MRVL 22.30 0.12 MatchGroup MTCH 28.22 -0.19 Mattel MAT 16.85 -0.41 MaximIntProducts MXIM 51.41 -0.50 MelcoResorts MLCO 25.48 -1.08 MercadoLibre MELI 271.73 -1.18 MicrochipTech MCHP 86.30 -0.70 MicronTech MU 39.90 -2.09 Microsemi MSCC 51.15 -1.45 Microsoft MSFT 81.08 -3.18 Middleby MIDD 126.41 -0.18 25.45 25.60 24.83 26.52 30.04 48.25 88.43 31.08 32.93 73.07 91.99 82.50 35.37 39.91 29.55 92.92 31.94 36.35 35.23 1.3 0.5 1.1 1.1 -0.1 0.2 0.4 0.2 4.5 0.3 0.2 0.4 0.5 0.5 0.5 0.3 0.8 0.6 0.7 52-Wk % Sym Hi/Lo Chg Stock ProShrUSCnsmrGd SZK ProShrUSCnsmrSvc SCC ProShUltShDow30 DXD ProShrUSFnl SKF ProShrUSInd SIJ ProShUltMC400 MZZ ProShrUlShtRus TWM ProShUltShtS&P500 SDS ProShrUlShtSmC600 SDD VelocityShLIBOR DLBR 13.97 25.00 8.85 20.76 17.20 18.60 16.94 41.47 15.38 22.12 -2.8 -3.4 -0.3 -1.3 ... -0.5 0.6 0.3 -5.6 -0.1 NYSE American highs - 4 AdamsRes AE ConTomka CTO IssuerDirect ISDR LadenburgThalPf LTSpA 50.59 64.31 17.95 25.64 0.6 2.9 2.6 1.0 NYSE American lows - 4 iBio IntlTowerHill NeubrgrBrmCA TelInstrElec IBIO THM NBW TIK 0.17 0.35 13.61 2.15 -5.6 -0.6 -0.5 -2.3 81.75 66.60 1.32 15.41 38.60 42.70 16.90 14.90 23.82 11.00 77.90 17.00 12.32 64.88 2.44 0.40 2.82 22.46 46.25 20.86 61.70 89.11 154.03 58.25 25.49 -0.1 -5.4 0.9 -0.1 1.4 2.6 0.9 0.1 0.7 0.5 4.4 0.7 2.5 -0.6 8.3 16.1 10.8 3.4 3.0 1.8 -0.2 0.3 1.7 1.5 1.2 NYSE Arca lows - 36 Nasdaq highs - 292 AdvShRangerEqBear HDGE DirexFinlBear3 FAZ DirexMcBear3 MIDZ DirexRgBanksBear3X WDRW DirexS&P500Br3 SPXS DirexS&P500Br1 SPDN DirexScBear3 TZA GuggBull2018CpBd BSCI iSh0-5YTIPSBd STIP iShCurHdgMSCIMex HEWW KraneCSIChInt KWEB ProShDecRetail EMTY ProShLgOnline CLIX ProShShtBasicMat SBM ProShShtDow30 DOG ProShShtFinls SEF ProShShtMC400 MYY ProShShtRus2000 RWM ProShShrtS&P500 SH ProShShrtSC600 SBB ProShUltShtDow30 SDOW ProShUltraProShFnl FINZ ProShShtMC400 SMDD ProShShtRus2000 SRTY ProShUltProShS&P SPXU ProShrUSBscMtls SMN 7.88 11.58 13.26 28.22 30.39 30.82 11.73 21.11 99.82 19.69 54.54 34.23 37.63 17.92 15.06 11.52 11.15 41.66 30.33 33.97 20.02 8.12 10.10 30.97 11.54 13.61 -1.2 -1.8 0.1 -5.7 0.4 0.2 1.1 ... -0.1 -0.5 -1.1 -3.0 -1.9 -2.7 -0.3 -0.9 -0.2 0.3 0.2 -0.3 -0.8 -7.3 -0.8 1.2 0.3 -1.8 Company AdvAcceltrApp AAAP AeriePharm AERI AndinaAcqnIIWt ANDAW ApellisPharm APLS ArcBest ARCB Astronics ATRO BGC Partners BGCP Bancorp34 BCTF Bandwidth BAND BankMutual BKMU BankofMarinBncp BMRC BankFinancial BFIN BayBancorp BYBK BeaconRoof BECN BellerophonTherap BLPH BigRockPtrsRt BRPAR BioanalyticalSys BASI BloominBrands BLMN BrynMawrBank BMTC BuildersFirstSrc BLDR C&F Fin CFFI CH Robinson CHRW CME Group CME CSX CSX CVB Fin CVBF Symbol -0.1 0.5 9.7 2.1 -0.9 1.0 6.1 5.9 -2.9 0.9 0.8 -0.1 -0.5 2.0 0.9 -0.5 1.5 ... 2.4 0.5 0.4 0.1 3.3 2.7 3.4 1.4 -1.2 -7.1 0.8 0.2 0.2 11.1 6.4 19.1 0.7 0.4 0.4 5.2 2.2 1.2 1.0 -2.0 0.6 0.5 1.4 -0.3 -0.7 0.5 0.3 -0.2 -1.1 0.8 Amount Yld % New/Old Frq Payable / Record Company NYSE AMER CheniereEnergy LNG CheniereEnerPtrs CQP CheniereEnHldgs CQH ImperialOil IMO Meridian Bancorp Nucor PNM Resources Raymond James SL Green Realty EBSB NUE PNM RJF SLG 1.0 .05 /.04 Q 2.6 .38 /.3775 Q 2.3 .265 /.2425 Q 1.1 .25 /.22 Q 3.1 .8125 /.775 Q Jan02 /Dec19 Feb09 /Dec29 Feb01 /Jan18 Jan17 /Jan03 Jan16 /Jan02 48.34 27.27 26.27 31.14 -0.14 -0.46 -0.53 -0.05 .3542 Jan02 /Dec15 .09677 .01418 .02563 Dec22 /Dec11 Dec13 /Dec11 Dec13 /Dec11 ESV NMKpB NMKpC STM TNP 0.9 3.7 3.8 1.1 4.5 .01332 .90 .975 .06 .05 0.7 0.7 8.5 .0732 .13 .1564 Q Q Q Q Q Payable / Record Dec15 /Dec04 Dec29 /Dec15 Dec29 /Dec15 Dec27 /Dec19 Dec29 /Dec21 Special Camping World Cl A Camping World Cl A John Hancock Hdg Eq Fd Initial Plymouth REIT 7.5% Pfd A PLYMpA Amount Yld % New/Old Frq Symbol ENSCO PLC Niagara Mhwk Pwr 3.6% pfd Niagara Mhwk Pwr 3.9% pfd STMicroelectronics Tsakos Energy Navigation Increased CWH CWH HEQ Dec29 /Dec15 Dec29 /Dec15 Dec29 /Dec11 Foreign Brasil DistrGrupo Pao ADR Energ Gerais-Cemig ADR Energ Gerais-Cemig ADR C Net YTD NAV Chg % Ret Fund 14.85 77.55 17.55 21.71 127.78 27.95 42.28 40.84 55.15 237.83 159.68 27.43 29.74 48.06 57.91 25.41 28.20 43.70 189.88 309.25 23.99 23.11 107.11 61.05 50.90 63.92 78.08 31.81 31.35 27.00 51.33 23.18 18.14 50.95 66.01 12.25 16.86 55.35 31.83 33.85 14.95 24.87 41.00 45.42 25.86 51.13 27.76 28.65 23.15 58.53 61.40 21.64 Mondelez MDLZ 43.11 0.19 s MonsterBev MNST 63.35 0.43 Mylan MYL 37.44 -0.68 NXP Semi NXPI 113.87 -0.91 s Nasdaq NDAQ 78.93 -0.33 NektarTherap NKTR 50.73 -2.61 s NetApp NTAP 55.93 -0.48 Netease NTES 328.91 5.01 Netflix NFLX 184.04 -2.78 Neurocrine NBIX 71.98 -1.62 s NewsCorp B NWS 16.75 0.30 s NewsCorp A NWSA 16.54 0.34 Nordson NDSN 127.52 -1.04 s NorthernTrust NTRS 98.95 1.29 NorwegCruise NCLH 55.41 0.60 Nutanix NTNX 34.04 -2.02 NVIDIA NVDA 186.66-11.02 OReillyAuto ORLY 250.39 15.99 s OldDomFreight ODFL 127.74 0.33 ON Semi ON 18.98 -0.88 OpenText OTEX 32.27 -0.20 PTC PTC 61.61 -1.03 Paccar PCAR 70.27 0.62 PacWestBancorp PACW 48.58 0.98 s Paychex PAYX 67.61 0.74 PayPal PYPL 70.97 -4.33 People'sUtdFin PBCT 19.25 0.34 s PilgrimPride PPC 37.55 0.27 Priceline PCLN 1723.24-12.06 Qiagen QGEN 31.24 -0.43 Qorvo QRVO 72.40 -1.81 Qualcomm QCOM 64.56 -0.93 RandgoldRscs GOLD 91.28 -0.44 RegenPharm REGN 378.37 4.90 s RossStores ROST 78.01 2.28 Ryanair RYAAY 120.89 0.44 SBA Comm SBAC 162.20 -6.96 s SEI Investments SEIC 70.18 -0.01 Sina SINA 97.00 1.21 SS&C Tech SSNC 40.48 -0.49 s SVB Fin SIVB 231.27 3.10 ScrippsNetworks SNI 83.37 1.07 Seagate STX 39.20 0.09 SeattleGenetics SGEN 57.88 -1.57 Shire SHPG 145.34 -2.91 SignatureBank SBNY 138.50 2.26 SiriusXM SIRI 5.61 0.07 Skyworks SWKS 98.26 -3.97 Splunk SPLK 77.68 -2.02 Starbucks SBUX 58.76 1.44 s SteelDynamics STLD 39.79 1.47 Symantec SYMC 27.75 -1.36 Synopsys SNPS 87.72 -2.60 s TD Ameritrade AMTD 53.34 1.67 T-MobileUS TMUS 60.24 -0.66 TRowePrice TROW 102.82 0.03 TakeTwoSoftware TTWO 102.11 -8.65 Tesla TSLA 305.20 -1.33 TexasInstruments TXN 95.97 -1.21 TractorSupply TSCO 68.27 0.11 Trimble TRMB 41.61 -0.39 s 21stCenturyFoxB FOX 32.31 0.84 s 21stCenturyFoxA FOXA 33.09 0.90 UltaBeauty ULTA 221.64 9.06 UltSoftware ULTI 213.61 5.70 UnitedTherap UTHR 134.02 0.70 UnivDisplay OLED 167.55 -9.15 VEON VEON 3.94 -0.07 VeriSign VRSN 112.56 -2.40 VeriskAnalytics VRSK 96.01 0.37 VertxPharm VRTX 138.79 -2.00 Viacom B VIAB 29.18 0.78 Viacom A VIA 34.50 0.30 Vodafone VOD 30.73 ... WalgreensBoots WBA 71.57 0.12 Weibo WB 102.03 -2.80 WesternDigital WDC 77.11 -2.25 WillisTowers WLTW 158.48 -3.47 Workday WDAY 96.58 -3.94 WynnResorts WYNN 158.07 -0.94 Xilinx XLNX 68.16 -0.08 YY YY 101.12 0.39 Yandex YNDX 32.03 -0.50 ZebraTech ZBRA 109.51 -0.85 Zillow C Z 39.99 -0.82 Zillow A ZG 39.88 -1.05 s ZionsBancorp ZION 51.74 1.66 Dividend announcements from December 4. 52-Wk % Sym Hi/Lo Chg Stock CalamosGlblTot CGO CalavoGrowers CVGW CanterburyPark CPHC CasellaWaste CWST CboeGlobalMkts CBOE CenterStateBank CSFL CentralGarden CENT CentralGardenA CENTA ChemungFinl CHMG ChurchillDowns CHDN Cintas CTAS ClearBr AC Grw CACG CollectorsUniv CLCT ColumbiaBanking COLB CommerceBcshrs CBSH ConcertPharm CNCE ConnectOneBncp CNOB Copart CPRT Costco COST CreditAcceptance CACC DavisFinl DFNL DavisUSEquity DUSA DollarTree DLTR Dunkin' DNKN E*TRADE ETFC EastWestBncp EWBC Ebix EBIX EditasMedicine EDIT EldoradoResorts ERI EmpireResorts NYNY EnantaPharma ENTA EsquireFinancial ESQ Etsy ETSY Exactech EXAC ExpeditorsIntl EXPD Ezcorp EZPW FSB Bancorp FSBC Fastenal FAST FifthThirdBncp FITB FirstBancshares FBMS FirstBank FRBA FirstComSC FCCO FirstInternetBncp INBK FirstMerchants FRME FirstMidwestBncp FMBI FT CapStrength FTCS FT DorseyFoc5 FV DorseyWrightPeople DWPP FT HighIncome FTHI FT LC CoreAlpha FEX FT LC GrwthAlpha FTC FT LC US Equity RNLC Net Sym Close Chg Stock Dividend Changes -0.02 14.2 FrankTemp/Franklin C 2.40 +0.01 -0.01 15.3 Income C t -0.03 17.9 FrankTemp/Temp A 12.21 +0.06 -0.02 NS GlBond A p 27.24 +0.08 -0.02 NS Growth A p -0.03 NS FrankTemp/Temp Adv -0.03 NS GlBondAdv p 12.17 +0.07 -0.02 NS Harbor Funds 75.07 -1.25 CapApInst Fidelity Invest 70.23 -0.28 23.94 -0.05 15.4 IntlInst r Balanc 87.55 -1.06 32.7 Harding Loevner BluCh NA ... 126.69 -1.55 29.5 IntlEq Contra 126.70 -1.55 29.6 Invesco Funds A ContraK 11.52 +0.03 10.27 -0.02 10.7 EqIncA CpInc r 41.39 -0.06 24.3 John Hancock Class 1 DivIntl 16.10 -0.03 181.82 -2.92 32.9 LSBalncd GroCo 17.30 -0.05 181.79 -2.92 33.1 LSGwth GrowCoK John Hancock Instl InvGB 7.93 ... 3.8 24.66 +0.06 11.28 ... 4.2 DispValMCI InvGrBd 54.26 +0.03 18.4 JPMorgan Funds LowP r 41.45 +0.31 MdCpVal L LowPriStkK r 54.22 +0.03 18.5 102.40 -0.69 23.9 JPMorgan R Class MagIn 11.63 ... OTC 108.26 -1.19 35.9 CoreBond 23.36 -0.09 17.1 Lazard Instl Puritn 19.55 +0.08 SrsEmrgMkt 21.22 +0.01 35.2 EmgMktEq SrsGroCoRetail 17.86 -0.28 33.7 Loomis Sayles Fds 14.20 +0.01 16.27 -0.05 27.1 LSBondI SrsIntlGrw 10.85 -0.01 18.4 Lord Abbett A SrsIntlVal ... 10.67 ... 4.1 ShtDurIncmA p 4.26 TotalBond Lord Abbett F First Eagle Funds 4.26 ... 61.06 -0.18 12.5 ShtDurIncm GlbA Metropolitan West FPA Funds 10.66 -0.01 TotRetBd 35.17 -0.01 9.1 FPACres 10.66 -0.01 TotRetBdI FrankTemp/Frank Adv 10.03 -0.01 IncomeAdv 2.35 +0.01 8.2 TRBdPlan MFS Funds Class I FrankTemp/Franklin A 41.85 +0.20 7.44 +0.01 5.4 ValueI CA TF A p 2.37 +0.01 8.0 MFS Funds Instl IncomeA p 25.44 -0.05 NA ... NA IntlEq RisDv A p Stock Continued From Page B8 Stock 2.11 -0.63 1.30 0.15 -0.95 0.07 1.40 0.26 0.25 1.10 -0.79 -0.32 -4.79 -0.68 -0.16 1.70 -0.76 9.27 -0.17 0.34 -0.14 0.03 -0.14 0.48 0.22 -0.26 -1.80 -0.33 -0.22 0.83 0.31 1.78 -1.17 -0.93 -0.26 0.05 0.05 -1.13 -2.00 1.81 -0.52 -0.21 0.41 0.06 4.48 0.02 -0.63 0.91 0.15 0.35 ... 3.95 -6.25 -1.68 0.09 0.14 -0.03 0.11 0.67 -1.00 -0.40 1.35 0.40 -1.09 0.38 -0.24 0.13 0.50 -0.36 1.25 0.59 -0.04 -0.22 -0.02 0.26 2.16 1.23 -0.03 -0.99 -0.97 0.01 -1.13 -0.42 0.46 0.76 0.07 0.35 3.05 1.55 0.50 -1.56 -0.37 2.60 0.59 -0.16 0.02 2.10 0.16 -0.12 1.21 -0.96 -0.04 1.25 0.20 0.20 -2.60 1.42 0.09 -0.06 1.56 -1.34 0.42 1.14 0.42 0.48 0.63 -0.04 -0.33 0.26 0.99 -0.29 -0.18 Stock co Fo m rp m e er rs ci on al a us l, e on Monday, December 4, 2017 Stock Net Sym Close Chg Stock ly . How to Read the Stock Tables CBD CIG CIG.C Net YTD NAV Chg % Ret Fund Mutual Series 7.8 GlbDiscA 32.62 +0.09 Oakmark Funds Invest 4.3 EqtyInc r 34.51 -0.01 15.6 Oakmark 86.33 +0.10 28.83 +0.11 OakmrkInt 4.6 Old Westbury Fds 15.05 -0.01 LrgCpStr 32.5 Oppenheimer Y 20.2 DevMktY NA ... 43.20 -0.05 IntGrowY NA Parnassus Fds 42.66 +0.05 ParnEqFd 10.3 PIMCO Fds Instl 12.22 +0.01 AllAsset 14.0 TotRt 10.25 ... 17.7 PIMCO Funds A NA ... IncomeFd 14.9 PIMCO Funds D NA ... IncomeFd 13.9 PIMCO Funds Instl NA ... IncomeFd 3.7 PIMCO Funds P NA ... IncomeP 23.1 Price Funds 96.83 -1.53 BlChip 7.4 CapApp NA ... NA ... EqInc 2.3 EqIndex 71.10 -0.08 69.79 -1.10 Growth 2.6 HelSci 73.80 -1.72 39.36 -0.67 InstlCapG 2.9 IntlStk 19.16 -0.06 3.3 IntlValEq 15.21 -0.04 3.3 MCapGro 93.32 -0.56 32.38 +0.09 MCapVal 16.8 N Horiz 56.01 -0.38 NA ... N Inc 25.6 OverS SF r 11.29 -0.05 52-Wk % Sym Hi/Lo Chg Stock FT LC Value FTA FT LowBetaIincm FTLB FT MC CoreAlpha FNX FT MC GrwthAlpha FNY FT MC US Equity RNMC FT MC ValAlpha FNK FT MCGrAlpDX FAD FT MuCValAlpha FAB FT Nasd100xTech QQXT FTNasdaqBk FTXO FT NasdaqTrans FTXR FT Nasd100 EW QQEW FT RBA AmerInd AIRR FT RBAQualIncm QINC FTRisingDivAch RDVY FT SC CoreAlpha FYX FT SC GrwthAlpha FYC FT SC Value FYT FT USEquityDiv RNDV Fiserv FISV FiveBelow FIVE FlexSTOXXGlbESGImp ESGG FlexShUSQualLC QLC Fortinet FTNT ForumMergerRt FMCIR ForumMergerWt FMCIW FoundationMed FMI Freshpet FRPT Funko FNKO FusionTelecom FSNN GlacierBancorp GBCI GladstonePfd2024 GLADN GlbPartnerAcqnWt GPACW GlbXConsciousCos KRMA GlbXS&P500Catholic CATH GoldenEnt GDEN GreatElmCap GEC GpoFinGalicia GGAL GuarantyBncp GBNK H&E Equipment HEES HMN Fin HMNF HamiltonLane HLNE HawaiianTelcom HCOM HeartlandFinUSA HTLF HeritageCommerce HTBK HeritageFin HFWA HinghamSvg HIFS HomeTrustBcshs HTBI HookerFurniture HOFT HowardBancorp HBMD JBHunt JBHT HuntingtonBcPfC HBANN 54.63 22.86 66.22 39.50 21.79 36.57 65.90 57.10 48.22 29.99 25.54 57.74 27.62 26.04 29.85 61.88 43.02 37.56 21.60 133.11 65.48 94.10 33.05 42.49 0.68 0.75 70.75 19.30 9.88 3.94 41.23 26.14 1.14 19.37 33.07 34.75 4.40 59.76 30.42 37.98 19.16 35.24 31.91 56.40 16.63 33.25 237.15 27.80 51.00 23.05 112.50 26.69 0.8 -0.2 -0.1 -0.8 0.7 1.0 -1.2 1.0 0.4 2.1 1.9 -0.5 1.2 1.1 1.0 0.3 -0.7 1.0 0.6 1.4 5.7 0.4 0.6 -1.5 11.7 5.8 -0.6 1.1 3.2 0.8 0.1 1.1 6.2 0.4 ... -1.1 1.2 ... 2.0 -0.5 1.1 -2.5 0.6 1.1 1.0 0.3 3.6 ... 3.5 3.2 1.1 0.6 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO: spin-off. Net YTD NAV Chg % Ret Fund R2020 R2030 13.4 R2035 19.1 R2040 27.0 Value NA ... NA ... NA ... NA ... NA ... 39.94 -0.03 PRIMECAP Odyssey Fds 37.19 -0.34 Growth r Principal Investors 13.80 -0.07 DivIntlInst Prudential Cl Z & I 14.53 -0.01 TRBdZ Schwab Funds 41.38 ... S&P Sel TIAA/CREF Funds 19.83 -0.02 EqIdxInst IntlEqIdxInst 20.31 -0.09 Tweedy Browne Fds GblValue 28.55 +0.10 VANGUARD ADMIRAL 500Adml 244.55 -0.25 BalAdml 34.60 -0.03 CAITAdml 11.75 +0.01 CapOpAdml r 157.76 -1.02 EMAdmr 36.91 +0.06 EqIncAdml 78.43 +0.09 ExplrAdml 96.84 -0.73 ExtndAdml 84.26 -0.28 ... GNMAAdml 10.49 GrwthAdml 71.38 -0.44 HlthCareAdml r 89.32 -1.10 ... HYCorAdml r 5.93 InfProAd 25.88 +0.01 93.97 -0.81 IntlGrAdml ... ITBondAdml 11.39 ... ITIGradeAdml 9.78 LTGradeAdml 10.73 +0.02 MidCpAdml 190.01 -0.04 11.40 +0.01 MuHYAdml 14.10 +0.01 MuIntAdml NA NA NA NA NA 18.7 17.3 29.9 8.4 R2025 NA 24.6 16.0 12.3 4.8 NA NA NA NA 33.4 NA NA 19.9 31.1 24.9 34.6 25.3 18.7 23.8 11.4 29.3 NA 24.5 52-Wk % Sym Hi/Lo Chg Stock HuntingtonBcshs HBAN INTL FCStone INTL IQ Chaikin US SC CSML IndependentBank IBTX InteractiveBrkrs IBKR IntlBcshs IBOC InvestorsTitle ITIC iPath2yearBear DTUS iSectorsPostMPT PMPT iShCoreS&PUSGrowth IUSG iShCoreS&PUSValue IUSV iShSelectDividend DVY iShMSCI ACWI ACWI iShMSCIUSAESGOpt ESGU iShMornMCValue JKI iShRuss1000PureUS AMCA iShS&PSC600Growth IJT J&JSnackFoods JJSF JensynAcqn JSYN Kingstone KINS LGI Homes LGIH LPL Financial LPLA LakeShoreBancorp LSBK LandstarSystem LSTR LeggMasonLVHD LVHD LeggMasonSCQualVal SQLV LeggMasonUSDivCore UDBI LendingTree TREE LivaNova LIVN MGC Diagnostics MGCD MagellanHealth MGLN MainSourceFncl MSFG ManTechIntl MANT Marriott MAR MellanoxTech MLNX MerchantsBancorp MBIN MeridianBancorp EBSB Methanex MEOH MonsterBev MNST Morningstar MORN NMI Holdings NMIH Nasdaq NDAQ NationalVision EYE Neogen NEOG NetApp NTAP NewsCorp B NWS NewsCorp A NWSA NorthernTrust NTRS NorthrimBanCorp NRIM NuvNasd100Dyn QQQX OakValleyBncp OVLY 14.93 44.91 28.67 70.75 60.12 42.90 203.97 35.01 28.26 53.94 55.44 99.53 72.03 58.26 159.50 27.13 173.48 154.02 11.10 19.60 71.96 55.39 16.80 104.80 32.01 27.46 32.42 316.25 88.56 11.20 95.55 40.67 52.35 129.56 62.00 20.35 20.73 55.05 63.41 94.79 17.95 80.00 33.88 85.89 58.11 17.05 16.87 99.66 38.15 24.72 18.53 1.8 0.3 0.5 0.6 1.4 -0.2 -1.4 1.6 2.7 -0.6 0.5 0.5 -0.3 0.3 0.6 2.7 -0.3 0.8 -0.3 -1.0 -3.1 3.3 2.1 ... 0.6 1.1 0.6 -0.3 -6.0 0.1 6.7 0.8 0.9 0.7 -2.7 1.4 2.8 -0.3 0.7 1.4 3.2 -0.4 -0.6 -0.4 -0.9 1.8 2.1 1.3 3.1 -0.7 ... 25.5 6.0 20.2 19.5 22.7 14.0 20.1 12.9 4.4 27.0 26.4 17.0 20.4 16.9 2.0 25.7 17.8 6.9 2.5 39.6 3.8 4.2 10.8 17.8 7.3 4.2 Net YTD NAV Chg % Ret Fund 11.66 MuLTAdml 10.89 MuLtdAdml MuShtAdml 15.72 PrmcpAdml r 137.96 REITAdml r 119.28 SmCapAdml 70.52 STBondAdml 10.39 STIGradeAdml 10.65 10.76 TotBdAdml NA TotIntBdIdxAdm TotIntlAdmIdx r 30.00 66.15 TotStAdml 14.22 TxMIn r 41.16 ValAdml 70.83 WdsrllAdml 66.07 WellsIAdml 75.23 WelltnAdml 80.89 WndsrAdml +0.01 ... ... -0.83 -0.66 -0.17 -0.01 ... ... ... -0.08 -0.09 -0.05 +0.13 +0.20 +0.03 +0.11 -0.11 5.9 2.0 1.1 26.8 4.9 15.2 1.1 2.1 3.4 NA 24.2 19.5 23.5 15.7 14.8 9.4 13.7 17.8 VANGUARD FDS DivdGro 27.19 211.70 HlthCare r INSTTRF2020 22.74 INSTTRF2025 23.03 INSTTRF2030 23.25 INSTTRF2035 23.47 INSTTRF2040 23.69 INSTTRF2045 23.85 39.55 IntlVal 20.01 LifeCon LifeGro 33.56 27.20 LifeMod PrmcpCor 27.54 33.95 SelValu r 27.43 STAR STIGrade 10.65 16.04 TgtRe2015 TgtRe2020 31.89 18.72 TgtRe2025 33.85 TgtRe2030 +0.11 -2.63 -0.02 -0.04 -0.03 -0.04 -0.04 -0.04 -0.12 -0.03 -0.06 -0.03 -0.03 +0.10 -0.07 ... -0.02 -0.05 -0.03 -0.05 17.8 17.8 12.9 14.5 16.0 17.3 18.8 19.4 24.6 10.1 17.4 13.7 24.2 18.0 16.6 2.0 10.5 12.8 14.5 15.9 52-Wk % Sym Hi/Lo Chg Stock ObesityETF SLIM OhioValleyBanc OVBC OldDomFreight ODFL OldLineBcshs OLBK Ollie'sBargain OLLI OrganicsETF ORG Otelco OTEL PacificMercBncp PMBC PatrickIndustries PATK Paychex PAYX PennNational PENN PeregrinePharmPf PPHMP PilgrimPride PPC PlumasBancorp PLBC Pool POOL PwrShBuybackAch PKW PwrShDWA Mom PDP PwrShDWASCMom DWAS PwrShDivAch PFM PwrShDynConDis PEZ PwrShDynConsStp PSL PwrShDynHlthcr PTH PwrShUS1500 PRFZ PwrShGlbWater PIO PwrShHY EqDiv PEY PwrShKBW Banks KBWB PwrShKBW RegBk KBWR PwrShRuss1000Low USLB PwrShS&P SC CD PSCD PwrShS&P SC ConStp PSCC PwrShS&P SC Fin PSCF PwrShS&P ScHealth PSCH PwrShS&P SmInds PSCI PwrShWaterRscs PHO PrincipalPriceSet PSET PrincipalUSSCMulti PSC ProShEquRising EQRR PyxisTankers PXS RBB Bancorp RBB Radware RDWR RecroPharma REPH RedRockResorts RRR Resonant RESN RiverviewBncp RVSB RossStores ROST RoyalBcshsPA A RBPAA SEI Investments SEIC SVB Fin SIVB Saia SAIA SandersonFarms SAFM SangamoTherap SGMO ScientificGames SGMS 30.24 40.25 130.71 30.94 49.75 34.46 13.49 9.85 102.95 68.56 29.84 25.00 38.39 22.50 130.92 58.34 52.19 49.44 26.36 50.16 64.93 71.80 132.62 26.09 18.07 55.73 58.95 31.34 60.41 76.62 56.99 99.27 67.63 30.55 32.00 31.05 45.50 12.22 26.00 20.78 10.59 31.91 8.06 9.54 78.81 4.87 71.13 236.18 68.70 176.43 18.40 54.95 0.1 -1.1 0.3 1.4 4.4 -0.3 5.6 1.6 -1.1 1.1 -0.3 1.2 0.7 1.4 2.4 0.8 -1.3 -1.1 0.4 -0.7 1.1 -4.3 -0.3 1.1 1.0 2.1 2.1 0.6 1.6 1.6 1.3 -1.3 0.3 0.1 1.1 0.8 4.7 62.9 2.8 0.8 1.9 2.0 -3.4 1.2 3.0 4.3 ... 1.4 3.5 0.4 0.6 -0.6 TgtRe2035 TgtRe2040 TgtRe2045 TgtRe2050 TgtRetInc TotIntBdIxInv WellsI Welltn WndsrII 20.81 -0.04 35.88 -0.06 22.55 -0.04 36.27 -0.07 13.65 -0.01 NA ... 27.27 +0.01 43.56 +0.07 39.91 +0.12 VANGUARD INDEX FDS 244.50 -0.25 500 207.94 -0.69 ExtndIstPl 57.18 +0.19 SmValAdml 10.72 ... TotBd2 17.93 -0.05 TotIntl 66.11 -0.10 TotSt VANGUARD INSTL FDS 34.61 -0.03 BalInst DevMktsIndInst 14.24 -0.05 DevMktsInxInst 22.25 -0.09 ExtndInst 84.26 -0.28 71.38 -0.44 GrwthInst 10.54 ... InPrSeIn 241.27 -0.25 InstIdx 241.30 -0.24 InstPlus 59.34 -0.08 InstTStPlus MidCpInst 41.98 ... MidCpIstPl 207.02 -0.04 70.52 -0.17 SmCapInst ... STIGradeInst 10.65 10.76 ... TotBdInst 10.72 ... TotBdInst2 10.76 ... TotBdInstPl NA ... TotIntBdIdxInst TotIntlInstIdx r 119.97 -0.32 TotItlInstPlId r 119.99 -0.32 66.16 -0.09 TotStInst 41.16 +0.13 ValueInst Western Asset ... CorePlusBdI 11.86 52-Wk % Sym Hi/Lo Chg Stock scPharm SCPH ShoreBancshares SHBI SierraOncology SRRA SimplyGoodFoods SMPL SleepNumber SNBR SodaStream SODA SoMO Bancorp SMBC SprottFocus FUND StarsGroup TSG SteelDynamics STLD StemlineTherap STML SterlingBancorp SBT SunshineBancorp SBCP Syntel SYNT TD Ameritrade AMTD TechTarget TTGT TexasCapBcshs TCBI TheStreet TST TitanMachinery TITN TriumphBancorp TBK Tucows TCX 21stCenturyFoxA FOXA 21stCenturyFoxB FOX USA Truck USAK Umpqua UMPQ UnitedNatFoods UNFI UnitedSecBcshrs UBFO UniversalForest UFPI UnivLogistics ULH UTStarcom UTSI VangdIntlHiDiv VYMI VangdRuss1000 VONE VangdRuss1000Grw VONG VangdRuss1000Val VONV VangdRuss3000 VTHR VangdRuss2000 VTWO VangdRuss2000Grw VTWG VangdRuss2000Val VTWV VarexImaging VREX VicShDivAccel VSDA VicShUSDiscEnhVol CSF VicShUSEQIncmEnh CDC VicShUS500EnhVol CFO VicShUS500Vol CFA VicShUSLCHiDivVol CDL VicShUSSCHiDiv CSB VidentCoreUSEquity VUSE ViperEnergyPtrs VNOM WAVE LifeSci WVE WD-40 WDFC WeatherStorm FLAG 18.17 17.93 3.41 13.72 37.94 72.05 40.80 8.01 23.70 40.41 15.95 13.01 24.80 25.81 54.24 14.10 95.20 1.63 22.82 34.70 64.65 34.02 33.19 19.05 22.86 52.69 10.20 39.58 24.44 5.50 66.79 122.50 137.92 108.83 122.57 124.67 136.76 112.36 38.80 28.17 46.17 47.09 48.85 48.89 45.84 45.43 33.52 22.00 39.70 122.65 42.08 Net YTD NAV Chg % Ret 4.4 0.2 -5.4 -0.5 4.0 2.3 0.3 0.4 1.1 3.8 -2.6 -0.2 1.7 0.3 3.2 -1.7 -0.7 2.0 1.9 3.8 -1.2 2.8 2.7 -1.8 2.1 9.8 2.5 1.6 -1.5 5.8 ... -0.1 -0.6 0.5 ... -0.3 -0.8 0.7 1.3 1.8 0.6 0.6 0.3 0.2 0.8 2.2 0.7 ... -0.8 1.6 1.9 17.3 18.8 19.4 19.3 7.8 NA 9.3 13.6 14.7 20.0 16.9 11.4 3.3 24.1 19.4 12.9 23.6 23.5 16.9 25.7 2.5 20.1 20.1 19.5 17.8 17.8 15.2 2.2 3.4 3.4 3.4 NA 24.2 24.2 19.6 15.7 6.7 52-Wk % Sym Hi/Lo Chg WernerEnterprises WERN WintrustFin Wt WTFCW WintrustFin WTFC WisdTrUSQltyDiv DGRW WisdTrUSSCQltyDiv DGRS XenithBkshrs XBKS ZionsBancorpWt ZIONW ZionsBancorp ZION ZionsBancorpWt ZIONZ 38.95 63.47 86.64 41.25 36.42 36.44 19.58 52.16 15.75 -1.7 1.2 3.5 0.3 1.1 0.7 9.5 3.3 10.1 Nasdaq lows - 40 AclarisTherap ACRS Altimmune ALT Bio-Path BPTH Biolase BIOL CAS MedSys CASM Check-Cap CHEK Compugen CGEN ConforMIS CFMS Conifer CNFR ConsldComm CNSL ContraVirPharm CTRV DragonVictory LYL FibrocellScience FCSC FortressBioPfdA FBIOP Incyte INCY InterlinkElec LINK InVivoTherap NVIV iShESG1-5YCpBd SUSB iSh1-3YTreasuryBd SHY LeisureAcqnUn LACQU Medigus MDGS MerrimackPharm MACK MongoDB MDB NanoDimension NNDM NeuroMetrixWt NUROW OceanPwrTech OPTT OrexigenTherap OREX OriginAgritech SEED OxbridgeRe OXBR PICO PICO RaPharm RARX ResearchFrontiers REFR ReToEcoSol RETO SalemMedia SALM SecurityNatFin SNFCA SenesTech SNES Sunworks SUNW trivago TRVG USAutoPartsNtwk PRTS VangdSTGovBd VGSH 21.32 -3.6 1.77 -1.1 0.20 -15.4 0.28 -22.0 0.59 -4.6 0.84 -4.6 2.25 -4.1 2.65 -12.1 5.50 -0.8 12.97 -0.3 0.42 -4.2 3.70 -5.0 1.26 -5.8 22.20 -0.5 93.65 -4.3 5.65 -3.4 1.05 -6.4 24.90 -0.2 83.91 -0.1 9.93 -0.3 1.50 1.3 11.10 -3.7 27.26 -1.6 3.54 -9.4 0.02 -11.3 1.08 -5.8 1.48 -5.1 0.77 -28.2 2.20 -8.3 12.55 -3.1 8.45 -37.3 0.95 -7.6 7.55 31.3 4.05 -11.8 4.70 4.0 0.76 -6.5 0.92 -7.4 6.46 -2.6 2.05 -5.5 60.31 -0.1 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. B10 | Tuesday, December 5, 2017 MARKETS DIGEST EQUITIES S&P 500 Index Dow Jones Industrial Average Last Year ago 24290.05 s 58.46, or 0.24% High, low, open and close for each trading day of the past three months. Trailing P/E ratio 21.39 20.96 P/E estimate * 19.82 18.02 Dividend yield 2.16 2.47 All-time high 24290.05, 12/04/17 Nasdaq Composite Index Last 2639.44 t 2.78, or 0.11% High, low, open and close for each trading day of the past three months. Year ago Trailing P/E ratio 24.94 24.22 P/E estimate * 19.72 18.41 Dividend yield 1.90 2.12 All-time high: 2647.58, 11/30/17 Last Year ago 6775.37 t 72.22, or 1.05% High, low, open and close for each trading day of the past three months. Trailing P/E ratio * 26.25 23.45 P/E estimate * 21.01 18.96 Dividend yield 1.07 1.25 All-time high: 6912.36, 11/28/17 Current divisor 0.14523396877348 24600 2640 6900 24000 2600 6750 23400 2560 6600 22800 2520 6450 22200 2480 6300 2440 6150 Session high t DOWN Session open t Close UP Close Open Session low 65-day moving average 65-day moving average 65-day moving average 21600 Bars measure the point change from session's open Sept. Oct. Aug. Nov. 6000 2400 21000 Aug. Sept. Oct. Sept. Aug. Nov. Oct. Nov. Weekly P/E data based on as-reported earnings from Birinyi Associates Inc. High Latest Close Low Net chg % chg High 52-Week Low % chg YTD % chg 3-yr. ann. Dow Jones Industrial Average 24534.04 24288.19 24290.05 0.24 58.46 1.79 Transportation Avg 10504.80 10278.92 10368.58 181.95 -4.44 -0.58 27629.33 27332.64 27336.03 -39.87 716.02 705.81 0.58 705.85 -0.15 770.08 Utility Average Total Stock Market Barron's 400 761.32 Nasdaq Stock Market Nasdaq Composite 6899.23 Nasdaq 100 6380.77 762.72 6770.69 6256.81 6775.37 -72.22 6263.70 -74.17 0.08 -1.05 24290.05 19216.24 26.4 22.9 10.7 10368.58 8783.74 14.2 14.6 4.4 774.47 631.38 20.3 15.6 8.2 27433.82 22948.06 708.56 591.26 19.1 19.4 17.4 17.3 8.4 9.4 6912.36 6422.56 -1.17 5308.89 4778.14 27.6 31.1 25.9 28.8 12.4 13.3 Standard & Poor's 500 Index 2665.19 2639.03 2639.44 -2.78 -0.11 2647.58 2204.71 19.7 17.9 8.4 MidCap 400 SmallCap 600 1916.71 952.10 1893.68 937.50 1894.07 938.01 -0.51 0.70 -0.03 1899.18 944.10 1642.79 815.62 15.3 13.8 14.1 11.9 9.5 11.4 Other Indexes Russell 2000 1559.61 1531.73 1532.41 -4.61 12724.50 12632.88 12634.89 20.33 Volume, Advancers, Decliners NYSE Arca Biotech 563.35 557.14 4313.97 4168.41 0.42 557.56 NYSE Arca Pharma 545.29 537.92 538.08 -5.35 107.77 105.57 2.16 PHLX§ Gold/Silver 106.84 79.37 78.69 -0.93 PHLX§ Oil Service 78.73 141.14 137.59 137.66 -0.24 1268.66 11.86 1220.69 10.26 PHLX§ Semiconductor Cboe Volatility -0.30 1544.14 0.16 0.08 4171.40 -84.50 -1.99 KBW Bank -0.98 2.06 -1.16 -0.17 1227.85 -30.80 -2.45 0.25 11.68 Philadelphia Stock Exchange Most-active issues in late trading Company Volume (000) Symbol SPDR S&P 500 SPY Last Net chg 10,510.9 263.93 After Hours % chg High -0.21 Region/Country Index Cnsmr Staples Sel Sector XLP 6,672.0 56.72 ... unch. 56.84 Digital Power 5,561.2 2.90 -0.59 -16.91 4.40 2.45 4,633.6 74.21 ... unch. 74.50 74.17 DPW Industrial Select Sector XLI 56.33 Cisco Systems CSCO 4,130.5 37.68 -0.04 -0.11 37.75 37.64 Comcast Cl A CMCSA 4,081.1 40.00 -0.32 -0.79 40.40 39.73 NVIDIA NVDA 3,940.2 186.40 -0.26 -0.14 199.00 186.05 Bank of America BAC 3,692.2 28.97 -0.09 -0.31 29.12 Percentage gainers… 2.19 1337.79 14.5 12634.89 10910.90 12.9 9.3 25.06 MYO 124.5 2.68 0.42 18.58 2.70 2.27 Collegium Pharmaceutical COLL 9.5 18.26 1.32 7.79 18.26 16.94 4.04 Gold Field ADR GFI 130.8 4.27 0.23 5.69 4.27 DepoMed DEPO 37.8 7.50 0.35 4.90 7.89 7.00 Alpine Immune Sciences ALPN 22.6 11.10 0.50 4.72 11.50 11.08 15.8 14.3 4.9 559.05 503.17 10.8 10.2 3.9 4304.77 3075.02 31.3 35.7 6.8 560.52 463.83 14.9 11.7 -0.8 ...And losers 106.84 88.02 19.7 16.4 13.4 Ascena Retail Group ASNA 96.72 73.03 -4.9 -0.2 3.3 Digital Power DPW 192.66 117.79 -25.0 -25.1 -13.8 Cleveland-Cliffs 1341.69 16.04 858.13 9.14 43.1 -3.8 35.5 -16.8 20.8 -1.9 863.9 2.07 -0.54 -20.69 2.67 2.03 5,561.2 2.90 -0.59 -16.91 4.40 2.45 CLF 549.2 6.32 -0.43 -6.37 6.75 6.26 Community Health Systems CYH 30.0 3.91 -0.24 -5.78 4.15 3.75 Performance Food Group PFGC 5.1 30.10 -1.05 -3.37 31.15 30.10 Close Percentage Gainers... Net chg 3017.76 389.92 260.28 13.90 0.32 0.77 DJ Americas 633.33 Sao Paulo Bovespa 73090.17 S&P/TSX Comp 15969.03 S&P/BMV IPC 47161.32 Santiago IPSA 3801.07 –0.75 825.72 –69.94 –103.99 –7.54 The Global Dow DJ Global Index DJ Global ex U.S. 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 100 387.47 390.20 4001.11 5389.29 13058.55 1466.28 22362.11 541.54 1133.87 10208.60 578.05 9328.63 7338.97 3.50 4.66 36.83 72.40 197.06 10.96 256.01 5.97 0.54 123.60 7.94 54.08 38.48 Asia-Pacific Australia China Hong Kong India Japan Singapore South Korea Taiwan S&P/ASX 200 5985.60 Shanghai Composite 3309.62 Hang Seng 29138.28 S&P BSE Sensex 32869.72 Nikkei Stock Avg 22707.16 Straits Times 3438.47 Kospi 2501.67 Weighted 10651.11 –4.20 –8.00 64.04 36.78 –111.87 –11.07 26.26 50.74 Latest % chg YTD % chg 0.46 0.08 0.30 –0.12 –0.44 –0.22 –0.20 1.14 0.91 1.21 0.93 1.36 1.53 0.75 1.16 1.11 0.05 1.23 1.39 0.58 0.53 19.2 19.6 21.7 17.2 21.4 4.5 3.3 17.9 7.2 11.4 10.9 10.8 13.7 –0.3 16.3 12.1 –1.6 9.2 8.1 13.5 2.7 n- EMEA Eurozone Belgium France Germany Israel Italy Netherlands Russia Spain Sweden Switzerland U.K. no –0.07 –0.24 0.22 0.11 –0.49 –0.32 1.06 0.48 5.6 6.6 32.4 23.4 18.8 19.4 23.5 15.1 Company Symbol Astrotech Pyxis Tankers General Cable Nuverra Envtl Solutions ReTo Eco-Solutions ASTC Exactech BeiGene ADR Blue Apron Cl A NexGen Energy Aptevo Therapeutics EXAC Eagle Bancorp TDH Holdings Flanigan's Enterp Cameco Corp Carvana Cl A EGBN BGC NES RETO BGNE APRN NXE APVO PETZ BDL CCJ CVNA 52-Week Low % chg High Symbol Bank of America Finl Select Sector SPDR Advanced Micro Devices SPDR S&P 500 Micron Technology BAC iShares MSCI Emg Markets General Electric iPath S&P 500 VIX ST Fut Comcast Cl A PwrShrs QQQ Tr Series 1 EEM 9.00 2.24 12.22 0.90 29.75 14.95 21.00 9.25 12.48 7.55 -40.5 178.3 52.6 ... ... Ra Pharmaceuticals Daqo New Energy ADR Windstream Holdings Immunomedics Eros International RARX 50.43 8.08 94.50 13.50 3.76 0.53 2.73 0.38 3.45 0.46 19.07 16.67 16.41 16.17 15.38 50.95 23.30 118.95 26.43 11.00 2.94 3.40 1.50 3.85 1.15 87.1 233.8 ... 78.8 78.8 China Rapid Finance ADR ConforMIS Salem Media Group Presbia VOXX International XRF 57.10 7.44 24.00 10.71 20.21 14.31 14.11 13.21 12.97 12.84 69.80 46.20 31.75 5.86 30.95 20.20 13.36 7.68 23.70 8.14 -4.9 ... 2.0 9.7 ... Cellect Biotechnology ADR Zogenix Cancer Genetics Align Technology Ichor Holdings APOP 7.15 0.92 2.80 1.23 2.30 Volume % chg from Latest Session (000) 65-day avg Close % chg 52-Week High Low A consumer rate against its benchmark over the past year Five-year ARM, Rate 5-year adjustablerate mortgage t (ARM) 4.00% 3.00 1.00 5-year Treasury note yield 0.00 D J F M A M J J A S O ND 2017 Proponent Federal Credit Union 2.75% Nutley, NJ 973-338-1133 Epic Funding Fort Myers, FL 2.88% 800-530-2680 FinancialResourcesFederalCreditUnion 2.88% Bridgewater, NJ 800-933-3280 Affinity FCU Bedminster, NJ t 3.00% 800-860-3700 1 3 6 month(s) EFZ 0 –5 –10 0.00 –15 30 Country/currency Euro Yen WSJ Dollar index s Federal-funds rate target 1.00-1.25 1.00-1.25 Prime rate* 4.25 4.25 Libor, 3-month 1.48 1.51 Money market, annual yield 0.33 0.33 Five-year CD, annual yield 1.49 1.49 30-year mortgage, fixed† 3.89 3.90 15-year mortgage, fixed† 3.29 3.32 Jumbo mortgages, $424,100-plus† 4.29 4.28 Five-year adj mortgage (ARM)† 3.65 3.61 New-car loan, 48-month 3.00 3.18 3-yr chg 52-Week Range (%) Low 0 2 4 6 8 High (pct pts) 0.25 l l 3.50 0.95 l 0.26 l 1.19 l l 3.73 l 2.99 l 4.21 l 3.20 l 2.85 1.25 4.25 1.51 0.36 1.49 4.33 3.50 4.88 4.03 3.36 1.00 1.00 1.27 -0.10 -0.09 -0.04 0.17 0.06 0.35 0.01 2017 Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest banks.† Excludes closing costs. Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com Corporate Borrowing Rates and Yields Bond total return index Close Yield (%) Last Week ago 52-Week High Low Total Return (%) 52-wk 3-yr 1461.128 2.221 2.159 2.237 1.818 2.604 1.793 10-yr Treasury, Ryan ALM 1731.233 DJ Corporate 380.397 Aggregate, Barclays Capital 1941.640 High Yield 100, Merrill Lynch 2858.979 Fixed-Rate MBS, Barclays 1985.680 Muni Master, Merrill 520.072 2.379 3.150 2.700 5.502 2.910 2.201 2.328 3.108 2.640 5.529 2.870 2.172 2.609 3.390 2.790 5.890 3.120 2.471 2.058 2.879 2.380 4.948 2.660 1.736 2.346 5.933 3.540 8.088 2.343 5.428 803.435 5.567 5.530 6.223 5.279 Treasury, Ryan ALM EMBI Global, J.P. Morgan 1.508 3.907 2.288 4.405 1.915 2.460 10.383 5.901 Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch ... -69.4 -25.0 -49.6 19.6 13.50 2.30 42.60 7.70 5.30 1.30 266.41 88.56 35.51 9.76 173.0 171.9 50.0 140.2 ... BGC GTYH LLSP DSUM JKF RARX IGM Volume % chg from Latest Session (000) 65-day avg Close % chg 2792 2737 2477 2242 2130 151 28,711 1,016 123 741 372 161 2,393 302 511 US$vs, YTDchg Mon in US$ per US$ (%) 52-Week High Low -0.78 35.09 0.30 1.59 -2.04 27.43 29.75 13.00 35.87 24.00 19.74 14.95 9.75 28.19 21.36 2086 25.95 0.39 1817 105.33 1.07 8.92 -37.32 1759 1743 26.14 -0.38 1388 164.61 -1.92 32.67 105.66 27.84 26.44 172.32 25.65 92.40 8.45 21.97 120.86 23.60 29.45 9.90 35.76 23.04 Track the Markets Compare the performance of selected global stock indexes, bond ETFs, currencies and commodities at WSJ.com/TrackTheMarkets US$vs, YTDchg Mon in US$ per US$ (%) Country/currency Americas Europe Argentina peso .0577 17.3412 9.3 Brazil real .3082 3.2442 –0.3 Canada dollar .7890 1.2675 –5.7 Chile peso .001543 648.00 –3.3 Ecuador US dollar 1 1 unch Mexico peso .0537 18.6146 –10.2 Uruguay peso .03448 29.0000 –1.2 Venezuela b. fuerte .099420 10.0584 0.6 Czech Rep. koruna Denmark krone Euro area euro Hungary forint Iceland krona Norway krone Poland zloty Russia ruble Sweden krona Switzerland franc Turkey lira Ukraine hryvnia UK pound Australian dollar .7597 1.3163 –5.2 China yuan .1511 6.6195 –4.7 Hong Kong dollar .1279 7.8180 0.8 India rupee .01554 64.357 –5.3 Indonesia rupiah .0000741 13498 –0.2 Japan yen .008896 112.41 –3.9 Kazakhstan tenge .003003 333.00 –0.2 Macau pataca .1242 8.0517 1.7 Malaysia ringgit .2458 4.0681 –9.3 New Zealand dollar .6859 1.4579 1.0 Pakistan rupee .00949 105.400 1.0 Philippines peso .0197 50.682 2.2 Singapore dollar .7421 1.3476 –6.9 South Korea won .0009206 1086.30 –10.1 Sri Lanka rupee .0065121 153.56 3.4 Taiwan dollar .03330 30.031 –7.5 Thailand baht .03068 32.590 –9.0 Vietnam dong .00004402 22715 –0.2 Commodities .04635 21.577 –16.0 .1594 6.2718 –11.3 1.1865 .8429 –11.3 .003781 264.45 –10.1 .009662 103.50 –8.4 .1201 8.3268 –3.7 .2821 3.5455 –15.3 .01701 58.804 –4.0 .1188 8.4196 –7.5 1.0154 .9848 –3.3 .2582 3.8732 9.9 .0368 27.1740 0.3 1.3478 .7419 –8.4 Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand 2.6514 .3772 ... .0565 17.6980 –2.4 .2867 3.4876 –9.4 3.3141 .3017 –1.3 2.5974 .3850 0.01 .2750 3.636 –0.1 .2666 3.7504 –0.01 .0740 13.5123 –1.3 Close Net Chg % Chg YTD%Chg WSJ Dollar Index 86.64 TR/CC CRB Index Crude oil, $ per barrel Natural gas, $/MMBtu Gold, $ per troy oz. 0.14 0.16 –6.78 Sources: Tullett Prebon, WSJ Market Data Group 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 5.10 2.65 4.05 1.86 4.05 Asia-Pacific Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Yield/Rate (%) Last (l)Week ago 12.86 9.47 8.25 5.88 9.00 U.S.-dollar foreign-exchange rates in late New York trading 10% 5 -13.62 -12.09 -11.76 -11.65 -11.45 Currencies Yen, euro vs. dollar; dollar vs. major U.S. trading partners 2.25 -0.82 -0.37 -0.60 -0.31 -0.75 * 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 1.50 1 2 3 5 710 years maturity Symbol ProShrs Short MSCI EAFE iSh Morningstar LC Value Ra Pharmaceuticals iSh Edge MSCI Intl Value iShares North Amer Tech One year ago 0.75 t 2.00 t Monday Company 47.93 33.94 32.38 17.46 112.32 31.05 42.18 34.04 156.69 115.77 3.00 5.20 2.66 4.50 2.35 5.80 Ranked by change from 65-day average* 45.93 0.20 17.95 0.39 32.59 -0.73 40.32 4.92 152.71 -1.15 3.75% -34.0 136.1 -70.6 174.4 -19.1 7.70 -0.98 -11.28 34.53 -4.38 -11.25 CGIX 2.18 -0.28 -11.22 ALGN 225.80 -28.27 -11.13 ICHR 23.61 -2.86 -10.80 IVLU 52-Week Low % chg 27.84 8.45 58.49 18.01 8.35 1.73 14.48 3.16 17.30 6.65 ZGNX 29.4 -11.0 66.3 90.6 67.9 Benchmark Yields Treasury yield curve andtoRates Yield maturity of current bills, High -37.32 -17.40 -15.04 -14.12 -13.73 VOXX 65,720 GE 65,682 VXX 53,983 CMCSA 51,056 QQQ 48,124 * Volumes of 100,000 shares or more are rounded to the nearest thousand Third Federal Savings and Loan 2.69% Cleveland, OH 866-627-1785 * 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. -5.31 -9.91 -0.40 -1.48 -1.75 LENS AKO.A MU NYSE Arca 8.92 47.04 2.26 9.00 11.00 SALM Embotell Andina A ADR General Cable GTY Technology Hldgs Cl A Direxion S&P500 Bull 1.25 ChineseYuanDimSumBd SPY Nasdaq Total volume*2,384,247,863 306,830,202 Adv. volume* 960,007,568 127,948,018 Decl. volume*1,400,245,538 178,052,843 Issues traded 3,088 1,350 Advances 1,310 633 Declines 1,663 690 Unchanged 115 27 New highs 292 341 New lows 40 36 Closing tick 36 81 Closing Arms† 1.15 1.31 Block trades* 8,104 1,601 Latest Session Close Net chg % chg CFMS 29.31 21.46 28.20 22.00 15.65 8.45 266.80 220.42 49.89 18.40 AMD 3.65% EROS 29.06 3.42 28.00 1.52 10.03 -6.52 264.14 -0.12 39.90 -4.98 notes and bonds Bankrate.com avg†: IMMU 109.0 72.0 67.4 27.9 101.0 s Selected rates WIN 141,880 96,772 95,312 83,440 72,957 XLF s U.S. consumer rates DQ Volume Movers CREDIT MARKETS & CURRENCIES Consumer Rates and Returns to Investor Symbol 69.34 62.93 35.09 32.34 31.31 Most Active Stocks Company Company 1.90 2.58 7.65 3.03 2.68 4.64 6.68 29.45 12.40 11.24 PXS Total volume* 985,618,941 15,368,278 Adv. volume* 569,701,660 9,258,428 Decl. volume* 402,782,540 5,683,338 Issues traded 3,095 334 Advances 1,506 138 Declines 1,459 174 Unchanged 130 22 New highs 292 4 New lows 28 4 Closing tick 71 7 Closing Arms† 0.75 0.42 Block trades* 6,941 144 Percentage Losers Latest Session Close Net chg % chg Sources: SIX Financial Information; WSJ Market Data Group WSJ .COM Low -0.08 266.19 263.68 Sources: SIX Financial Information; WSJ Market Data Group International Stock Indexes Interest rate NYSE NYSE Amer. co Fo m rp m e er rs ci on al a us l, e on NYSE Composite Americas Brazil Canada Mexico Chile 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. Myomo Value Line World 0.07 Late Trading ly . Major U.S. Stock-Market Indexes 607.36 -5.76 188.69 57.47 2.985 1274.30 -2.00 -0.89 -0.076 -4.50 -0.94 616.58 532.01 -1.05 195.14 58.95 -1.53 3.93 -2.48 -0.35 1346.00 166.50 42.53 2.56 1127.80 % Chg 6.15 YTD % chg 7.07 -2.47 -1.99 6.98 10.97 -18.31 -19.84 8.54 10.81 For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Tuesday, December 5, 2017 | B11 COMMODITIES Open Metal & Petroleum Futures Contract Open High hi lo Low Settle Chg Copper-High (CMX)-25,000 lbs.; $ per lb. Dec 3.0680 3.0840 3.0590 3.0630 –0.0025 March'18 3.0965 3.1180 3.0840 3.0900 –0.0025 Gold (CMX)-100 troy oz.; $ per troy oz. Dec 1272.50 1276.10 1270.30 1274.30 –4.50 Feb'18 1277.60 1280.50 1273.50 1277.70 –4.60 April 1282.60 1284.60 1277.80 1282.10 –4.60 June 1285.80 1289.00 1284.00 1286.50 –4.60 Aug 1291.20 1291.30 1289.40 1291.00 –4.60 Dec 1300.00 1302.40 1297.50 1300.10 –4.70 Palladium (NYM) - 50 troy oz.; $ per troy oz. Dec 1020.85 1024.40 s 1006.90 998.75 –21.30 March'18 1014.00 1017.15 986.50 991.75 –24.50 June 1006.65 1007.40 979.60 985.25 –24.40 Platinum (NYM)-50 troy oz.; $ per troy oz. Dec 926.20 927.80 926.20 924.80 –14.60 Jan'18 938.40 939.20 924.30 926.00 –14.60 Silver (CMX)-5,000 troy oz.; $ per troy oz. Dec 16.310 16.340 16.190 16.284 –0.013 March'18 16.370 16.455 16.265 16.373 –0.015 Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Jan 58.32 58.34 57.35 57.47 –0.89 Feb 58.44 58.44 57.37 57.49 –0.89 March 58.25 58.28 57.32 57.42 –0.89 April 58.00 58.07 57.21 57.31 –0.86 June 57.58 57.58 56.79 56.87 –0.79 Dec 55.53 55.53 55.02 55.09 –0.53 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Jan 1.9383 1.9450 1.8932 1.8945 –.0468 Feb 1.9330 1.9449 1.8951 1.8962 –.0455 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Jan 1.7365 1.7392 1.6908 1.6922 –.0494 Feb 1.7495 1.7535 1.7078 1.7092 –.0466 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Jan 3.091 3.127 2.953 2.985 –.076 Feb 3.077 3.124 2.956 2.988 –.075 March 3.040 3.082 2.926 2.955 –.070 April 2.891 2.906 2.814 2.834 –.044 May 2.887 2.891 2.809 2.829 –.040 Oct 2.957 2.962 2.885 2.903 –.040 Open interest 5,710 164,899 7,372 366,359 26,183 37,734 10,404 13,671 127 34,129 653 26 64,325 1,837 151,412 534,868 238,274 305,574 140,684 240,997 263,206 136,897 61,057 169,971 57,428 378,827 150,294 207,682 134,799 115,934 88,029 Contract High hilo Low Settle Open interest Chg Agriculture Futures Corn (CBT)-5,000 bu.; cents per bu. Dec 344.75 346.00 338.75 339.50 –5.25 7,367 March'18 359.00 360.50 352.50 353.50 –5.25 859,178 Oats (CBT)-5,000 bu.; cents per bu. March 264.50 265.00 256.75 257.00 –6.25 5,875 May 271.00 271.00 262.00 262.25 –6.75 968 Soybeans (CBT)-5,000 bu.; cents per bu. Jan 998.25 1008.50 996.75 998.50 4.25 291,354 March 1010.00 1020.00 1008.50 1010.25 4.25 181,311 Soybean Meal (CBT)-100 tons; $ per ton. Dec 329.00 337.60 328.70 335.40 7.20 3,642 Jan'18 330.80 341.00 330.70 337.50 7.30 138,998 Soybean Oil (CBT)-60,000 lbs.; cents per lb. Dec 33.85 33.86 33.36 33.36 –.24 2,187 Jan'18 33.80 33.96 33.42 33.44 –.25 161,338 Rough Rice (CBT)-2,000 cwt.; $ per cwt. Jan 1247.50 1248.00 1211.50 1218.00 –28.00 6,868 March 1271.00 1277.00 1242.50 1247.50 –28.50 3,214 Wheat (CBT)-5,000 bu.; cents per bu. Dec 416.00 419.00 410.25 410.25 –4.25 1,777 March'18 439.50 443.00 434.25 435.25 –3.25 292,611 Wheat (KC)-5,000 bu.; cents per bu. Dec 423.00 423.75 420.50 420.00 –.50 446 March'18 437.00 441.00 s 432.75 434.00 –3.50 204,277 Wheat (MPLS)-5,000 bu.; cents per bu. Dec 611.75 615.75 611.75 614.00 3.50 342 March'18 631.00 634.00 627.50 629.00 –2.50 43,057 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. Jan 150.025 150.875 148.825 149.950 –.375 24,877 March 147.750 148.525 146.700 147.750 –.275 17,735 Cattle-Live (CME)-40,000 lbs.; cents per lb. Dec 117.000 117.525 116.225 116.375 –.850 21,205 Feb'18 121.450 122.150 120.825 121.175 –.800 153,418 Hogs-Lean (CME)-40,000 lbs.; cents per lb. Dec 65.425 65.650 64.425 64.950 –.325 22,502 Feb'18 70.625 71.800 69.700 71.675 .950 99,863 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. Jan 437.40 438.60 431.20 432.50 –2.90 4,721 March 426.00 427.70 420.10 422.40 –2.70 1,199 Cash Prices | WSJ.com/commodities Monday, December 04, 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 Energy 0.9791 1.0457 2.900 2.840 2.860 2.560 2.690 2.240 2.760 59.850 12.100 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 Metals Monday 16.3300 12270 (U.S.$ equivalent) Coins,wholesale $1,000 face-a Other metals LBMA Platinum Price PM *934.0 Platinum,Engelhard industrial 931.0 Platinum,Engelhard fabricated 1031.0 Palladium,Engelhard industrial 1020.0 Palladium,Engelhard fabricated 1120.0 Aluminum, LME, $ per metric ton *2046.5 Copper,Comex spot 3.0630 Iron Ore, 62% Fe CFR China-s 71.3 Shredded Scrap, US Midwest-s,w 276 Steel, HRC USA, FOB Midwest Mill-s 625 Gold, per troy oz 1279.32 1375.27 1273.45 1413.53 *1277.25 *1275.50 1326.26 1339.01 1339.01 1545.57 1253.00 1339.01 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA Gold Price AM LBMA Gold Price PM Krugerrand,wholesale-e Maple Leaf-e American Eagle-e Mexican peso-e Austria crown-e Austria phil-e Silver, troy oz. 16.4000 19.6800 16.2700 20.3380 £12.0900 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price Settle Chg Open interest Milk (CME)-200,000 lbs., cents per lb. 15.32 15.39 15.26 15.37 .05 4,387 Dec Jan'18 14.45 14.45 t 14.25 14.28 –.21 3,687 Cocoa (ICE-US)-10 metric tons; $ per ton. 2,077 2,077 2,050 2,002 –38 107 Dec March'18 2,033 2,039 1,994 2,003 –38 133,669 Coffee (ICE-US)-37,500 lbs.; cents per lb. 126.20 127.25 126.15 126.75 –.80 1,370 Dec March'18 129.10 130.20 128.05 128.50 –1.05 114,476 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. 15.02 15.15 14.84 15.06 .08 384,322 March May 14.99 15.09 14.82 15.00 .06 137,708 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. 27.35 27.35 27.35 27.05 –.07 2,826 March May 27.22 27.22 27.22 27.22 –.02 2,217 Cotton (ICE-US)-50,000 lbs.; cents per lb. 75.00 75.34 75.00 75.03 –.40 70 Dec March'18 73.33 73.35 72.50 72.58 –.70 171,140 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. 163.20 163.35 160.00 161.80 –.90 7,508 Jan March 162.60 162.60 160.00 161.85 –.75 2,579 Interest Rate Futures Treasury Bonds (CBT)-$100,000; pts 32nds of 100% Dec 153-200 154-100 153-060 154-040 –8.0 41,761 March'18 152-160 153-060 152-020 153-010 –7.0 756,472 Treasury Notes (CBT)-$100,000; pts 32nds of 100% Dec 124-065 124-185 124-065 124-160 –5.5 143,760 March'18 123-310 124-105 123-300 124-080 –5.5 3,190,546 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% Dec 116-152 116-187 116-142 116-170 –4.7 155,603 March'18 116-075 116-117 116-052 116-095 –5.2 2,985,476 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Dec 107-115 107-115 107-102 107-107 –1.7 65,611 March'18 107-057 107-060 107-042 107-050 –2.0 1,703,171 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Dec 98.710 98.710 98.708 98.710 … 121,923 Jan'18 98.605 98.605 t 98.600 98.605 –.005 355,639 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% Dec 100.609 100.703 100.516 100.641 –.281 27,202 March'18 98.000 98.000 t 97.969 98.094 –.281 93 1 Month Libor (CME)-$3,000,000; pts of 100% Dec ... ... ... 98.5300 … 2,462 Eurodollar (CME)-$1,000,000; pts of 100% Dec 98.4525 98.4525 98.4375 98.4400 –.0100 1,581,546 March'18 98.2600 98.2600 98.2400 98.2500 –.0250 1,565,677 June 98.1100 98.1100 98.0850 98.1000 –.0200 1,340,242 Dec 97.9200 97.9250 97.8950 97.9100 –.0300 1,574,938 Burlap,10-oz,40-inch NY yd-n,w Cotton,1 1/16 std lw-mdMphs-u Cotlook 'A' Index-t Hides,hvy native steers piece fob-u Wool,64s,staple,Terr del-u,w 0.6200 0.7183 *83.15 72.500 n.a. Grains and Feeds Barley,top-quality Mnpls-u Bran,wheat middlings, KC-u Corn,No. 2 yellow,Cent IL-bp,u Corn gluten feed,Midwest-u,w Corn gluten meal,Midwest-u,w Cottonseed meal-u,w Hominy feed,Cent IL-u,w Meat-bonemeal,50% pro Mnpls-u,w Oats,No.2 milling,Mnpls-u Rice, 5% Broken White, Thailand-l,w Rice, Long Grain Milled, No. 2 AR-u,w Sorghum,(Milo) No.2 Gulf-u n.a. 98 3.2000 95.6 477.3 235 88 215 2.7400 392.00 25.00 7.5363 Food Beef,carcass equiv. index choice 1-3,600-900 lbs.-u select 1-3,600-900 lbs.-u Broilers, National comp wghtd-u,w Butter,AA Chicago Cheddar cheese,bbl,Chicago Cheddar cheese,blk,Chicago Milk,Nonfat dry,Chicago lb. Cocoa,Ivory Coast-w Coffee,Brazilian,Comp Coffee,Colombian, NY Eggs,large white,Chicago-u Flour,hard winter KC Hams,17-20 lbs,Mid-US fob-u Hogs,Iowa-So. Minnesota-u Pork bellies,12-14 lb MidUS-u Pork loins,13-19 lb MidUS-u Steers,Tex.-Okla. Choice-u Steers,feeder,Okla. City-u,w 189.07 167.57 0.8590 2.1900 155.00 152.00 71.00 n.a. 1.2584 1.4659 1.7650 15.90 0.72 64.72 n.a. 0.8596 120.00 165.88 Fats and Oils 34.7500 n.a. 0.3900 0.3244 0.2650 0.3300 Corn oil,crude wet/dry mill-u,w Grease,choice white,Chicago-h Lard,Chicago-u Soybean oil,crude;Centl IL-u Tallow,bleach;Chicago-h Tallow,edible,Chicago-u Borrowing Benchmarks | WSJ.com/bonds Money Rates December 4, 2017 Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a guide to general levels but don’t always represent actual transactions. Week Latest ago Chg From (%) Sept. '17 Oct. '16 U.S. consumer price index –0.06 0.28 2.0 1.8 Week ago Britain 0.50 0.50 0.50 0.25 Treasury bill auction 1.50 1.50 1.50 1.50 4 weeks 13 weeks 26 weeks 1.38 0.24 Overnight repurchase Prime rates 4.25 4.25 4.25 3.50 3.20 3.20 3.20 2.70 1.475 1.475 1.475 1.475 Euro zone Switzerland 0.00 0.50 0.00 0.50 0.00 0.50 Key Interest Rates 0.00 0.50 1.75 1.16 1.16 1.75 1.75 1.00 Currency Futures Dec March'18 .8877 .8923 .8905 .8952 .8848 .8896 .8884 –.0046 223,431 .8931 –.0045 13,051 Dec March'18 .7872 .7879 .7903 .7909 .7859 .7868 .7877 –.0001 139,039 .7885 –.0001 6,122 Dec March'18 1.3480 1.3526 1.3545 1.3585 1.3419 1.3465 1.3475 1.3519 Dec March'18 1.0213 1.0285 1.0219 1.0289 1.0143 1.0218 1.0153 –.0104 1.0227 –.0103 .7594 .7594 .7591 .7590 .7590 .7614 .7612 .7610 .7610 .7590 .7579 .7580 .7576 .7576 .7590 Canadian Dollar (CME)-CAD 100,000; $ per CAD British Pound (CME)-£62,500; $ per £ Swiss Franc (CME)-CHF 125,000; $ per CHF 1.1600 1.1600 1.1700 0.4000 Offer 1.1700 1.1700 1.1900 0.4200 0.40 Commercial paper Nonfinancial 1-month 2-month 3-month Financial 1-month 2-month 3-month 1.18 1.26 1.32 1.16 1.26 1.31 1.18 1.26 1.32 0.49 0.58 0.70 1.23 1.30 1.36 1.22 1.28 1.35 1.23 1.30 1.36 0.48 0.60 0.72 Discount window primary credit 1.75 1.75 1.75 1.00 Conventional mortgages n.a. n.a. n.a. n.a. Treasury yields at constant maturities 1-month 3-month 6-month 1-year 2-year 3-year 5-year 7-year 10-year 20-year 1.15 1.28 1.44 1.62 1.77 1.87 2.10 2.26 2.36 2.60 1.14 1.30 1.45 1.62 1.76 1.86 2.08 2.25 2.35 2.58 1.15 1.30 1.45 1.62 1.77 1.87 2.10 2.37 2.55 2.91 0.34 0.48 0.60 0.80 1.11 1.39 1.65 1.90 2.07 2.43 Week Latest ago Total return close YTD total return (%) Yield (%) Latest Low High Index Australian Dollar (CME)-AUD 100,000; $ per AUD Dec Jan'18 Feb March June 1-month 3-month 6-month 1.13 1.26 1.41 1.11 1.27 1.42 1.13 1.27 1.42 0.33 0.48 0.59 0.39 0.50 0.52 0.72 0.76 0.34 0.47 0.51 0.71 0.74 0.39 0.50 0.63 0.97 0.97 -0.02 0.20 0.28 0.60 0.65 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. TIPS 5-year 7-year 10-year 20-year Long-term avg Interest rate swaps 1-year 2-year 3-year 4-year 5-year 7-year 10-year 30-year n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Call money 3.00 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. State and local bonds n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. Eurodollars 1 month 3 month 6 month 3.00 2.25 Mexican Peso (CME)-MXN 500,000; $ per MXN Dec .05349 .05363 March'18 .05268 .05278 Euro (CME)-€125,000; $ per € Dec 1.1879 1.1888 March'18 1.1950 1.1958 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 –.0017 132,329 –.0017 915 –.0017 309 –.0018 2,437 –.0017 260 .05332 .05249 .05362 .00010 175,190 .05279 .00010 957 1.1838 1.1910 1.1866 –.0037 465,091 1.1937 –.0036 16,765 Index Futures Mini DJ Industrial Average (CBT)-$5 x index Dec March'18 24536 s 24542 s 24346 24338 24287 24296 S&P 500 Index (CME)-$250 x index 24305 24314 Dec 2659.60 2664.70 s 2634.10 2638.20 March'18 2662.00 2667.00 s 2639.90 2640.40 Mini S&P 500 (CME)-$50 x index Dec 2654.50 2665.25 s 2633.75 2638.25 March'18 2655.50 2667.25 s 2636.25 2640.50 Mini S&P Midcap 400 (CME)-$100 x index Dec 1903.50 1917.30 s 1890.80 1894.50 March'18 1912.40 1918.20 s 1895.80 1896.80 Mini Nasdaq 100 (CME)-$20 x index Dec 6371.0 6391.8 6250.8 6265.3 March'18 6371.8 6418.5 6269.3 6283.5 Mini Russell 2000 (ICE-US)-$100 x index Dec 1544.80 1561.90 s 1529.20 1531.10 March'18 1553.20 1564.70 s 1533.50 1533.70 Mini Russell 1000 (ICE-US)-$100 x index Dec 1474.80 1477.60 s 1462.80 1462.20 U.S. Dollar Index (ICE-US)-$1,000 x index Dec 93.04 93.35 93.01 93.14 March'18 92.81 93.06 92.70 92.86 67 149,346 69 4,171 –5.70 –5.50 69,970 5,727 –5.75 3,231,700 –5.50 218,589 –.80 –.50 93,312 22 –81.0 292,953 –80.5 4,448 –6.60 –6.40 67,430 228 –3.50 355 .30 .32 36,907 4,647 Source: SIX Financial Information 3.3 1941.64 2.700 2.380 2.790 U.S. Aggregate 5.9 U.S. Corporate 1985.68 1953.17 U.S. Corporate Indexes Bloomberg Barclays 2786.30 Total return close YTD total return (%) Index 3.7 2616.47 Intermediate 10.7 Long term 3891.90 4.2 Double-A-rated 567.80 6.5 719.44 3.260 3.030 3.520 1164.49 2.870 2.530 3.010 1793.14 2.3 Mortgage-Backed 1.8 Ginnie Mae (GNMA) 2.850 2.630 3.090 2.4 Fannie mae (FNMA) 2.920 2.670 3.120 2.5 Freddie Mac (FHLMC) 2.940 2.680 3.130 Triple-B-rated 7.3 8.9 418.99 n.a. 1.39 2.910 2.660 3.120 4.090 4.080 4.710 520.07 4.2 Muni Master 2.700 2.470 2.870 363.52 4.7 7-12 year 3.560 3.340 3.870 409.69 6.2 12-22 year 2.508 2.213 3.000 397.07 7.0 22-plus year 2.892 2.770 3.588 High Yield Bonds Merrill Lynch 417.02 Yield (%) Latest Low High High Yield Constrained 5.743 5.373 6.496 2.201 1.736 2.471 2.235 1.744 2.550 Global Government J.P. Morgan† Triple-C-rated 10.633 9.584 12.165 545.22 1.5 Global Government 1.410 1.300 1.560 2858.98 6.5 High Yield 100 5.502 4.948 5.890 758.08 0.6 Canada 2.000 1.570 2.190 378.46 7.5 Global High Yield Constrained 5.199 4.934 6.161 374.59 1.5 EMU§ 0.991 0.933 1.363 306.68 6.9 Europe High Yield Constrained 2.349 1.897 3.792 717.99 1.6 France 0.730 0.690 1.210 Germany 0.410 0.210 0.620 Japan 0.410 0.280 0.460 Netherlands 0.520 0.360 0.760 U.K. 1.600 1.340 1.790 U.S Agency Bloomberg Barclays 511.20 -0.7 1637.98 2.0 U.S Agency 2.140 1.690 2.140 288.10 -0.02 1462.75 1.1 10-20 years 2.010 1.490 2.010 565.12 -0.2 20-plus years 2.920 2.730 3.460 920.33 2.930 2.610 3.090 803.44 8.2 3382.52 5.0 Yankee 2461.05 0.8 8.7 Emerging Markets ** 5.567 5.279 6.223 *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds † In local currency § Euro-zone bonds Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan Global Government Bonds: Mapping Yields Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session Country/ Coupon (%) Maturity, in years 1.750 2.250 1.774 2.363 1.613 2.334 1.100 2.387 1.787 s 2.554 s l 1.773 1.779 1.816 l 2.544 2.581 2.869 France 2 -0.588 s 10 0.652 s l -0.591 -0.591 l 0.604 0.617 Germany 2 -0.703 t 10 0.347 s l -0.701 -0.754 l 0.309 0.365 Italy 2 -0.311 t 10 1.716 s l -0.289 -0.211 0.059 l 1.702 1.794 1.911 Japan 2 -0.148 s 10 0.039 s l -0.153 -0.161 -0.177 l 0.034 0.053 Spain 2 -0.364 s 10 1.412 t l -0.372 -0.363 -0.150 -217.0 l 1.422 1.470 1.555 -96.7 0.506 s 1.288 s l 0.473 0.448 0.071 l 1.235 1.267 1.238 10 2.050 0.100 2.750 1.450 Spread Under/Over U.S. Treasurys, in basis points Latest Prev Year ago l Australia 2 0.050 Year ago l 2.750 0.750 Month ago U.S. 2 1.806 s 10 2.379 s 2.750 0.000 Yield (%) Latest(l) 0 20 40 60 80 100 120 Previous 1.750 U.K. 2 4.250 10 -0.1 71.6 18.0 48.2 -0.687 -239.4 0.716 -172.7 -236.5 -178.7 -176.0 -167.0 -0.729 -251.0 0.282 -203.2 -247.5 -182.8 -205.5 -210.5 -211.7 -206.3 -104.1 -66.2 -66.1 -47.6 -195.4 -192.7 -127.6 -1.9 17.5 0.040 -234.0 -130.1 -109.1 -232.9 -234.7 -214.6 -125.0 -94.2 -83.2 -130.1 -102.9 -112.9 -114.9 Source: Tullett Prebon 0.69 Corporate Debt in that same company’s share price. Libor One month Three month Six month One year 1.39181 1.50849 1.69313 1.98169 1.34676 1.47725 1.65832 1.94294 1.39181 1.50849 1.69313 1.98169 0.64889 0.94806 1.29100 1.64400 -0.399 -0.383 -0.312 -0.258 -0.402 -0.381 -0.316 -0.247 -0.376 -0.329 -0.220 -0.083 -0.405 -0.383 -0.322 -0.258 Euro Libor One month Three month Six month One year Euro interbank offered rate (Euribor) -0.368 -0.326 -0.272 -0.190 One month Three month Six month One year Latest -0.372 -0.329 -0.272 -0.186 Value Traded -0.366 -0.313 -0.216 -0.078 -0.375 -0.332 -0.276 -0.192 52-Week High Low DTCC GCF Repo Index Treasury MBS 1.116 27.450 1.366 0.264 1.091 105.122 1.506 0.284 Open Implied Settle Change Interest Rate Corporate bonds, Moody's seasoned Aaa Baa 3.00 1.36 90 days 52-Week High Low .7593 .7593 .7591 .7589 .7588 78,109 1,338 Mortgage-Backed Bloomberg Barclays Broad Market Bloomberg Barclays 0.100 52-Week high low Commercial paper (AA financial) Week Ended Dec 1 Nov 24 .0002 183,067 .0003 15,822 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 0.500 Other short-term rates 1.0500 1.0500 1.1600 0.2500 Bid Open interest Bonds | WSJ.com/bonds Tracking Bond Benchmarks 0.000 3.494 3.455 3.865 3.253 3.520 3.475 3.899 3.281 30 days 60 days Effective rate 1.1700 1.1700 1.2000 0.4200 High 1.3125 1.3125 1.3125 0.5625 Treasury yields (secondary market) 1.16 Secondary market Federal funds 52-Week High Low Federal funds (effective) 1.170 1.130 1.300 0.340 1.290 1.285 1.290 0.490 1.450 1.435 1.450 0.590 Fannie Mae 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. Week Ended Dec 1 Nov 24 —52-WEEK— High Low 30-year mortgage yields Discount Low Policy Rates 1.17 no U.S. Canada Japan 1.13 U.S. U.S. government rates 52-Week High Low Week Latest ago Australia International rates Latest —52-WEEK— High Low n- 246.663 253.638 All items Core Chg Japanese Yen (CME)-¥12,500,000; $ per 100¥ ** EMBI Global Index Inflation Settle Monday 332.50 9.6150 7.5150 4.3600 3.9700 5.1750 SoybeanMeal,Cent IL,rail,ton48%-u Soybeans,No.1 yllw IL-bp,u Wheat,Spring14%-pro Mnpls-u Wheat,No.2 soft red,St.Louis-bp,u Wheat - Hard - KC (USDA) $ per bu-u Wheat,No.1soft white,Portld,OR-u KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence; L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data as of 12/1 Source: WSJ Market Data Group Oct. index level Contract High hilo Low Open co Fo m rp m e er rs ci on al a us l, e on Fibers and Textiles Contract High hilo Low Open ly . Futures Contracts WSJ.com/commodities DTCC GCF Repo Index Futures Treasury Dec Treasury Jan Treasury Feb 98.665 0.005 2488 1.335 98.560 unch. 1284 1.440 98.555 -0.005 549 1.445 Notes on data: U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks, and is effective June 15, 2017. Other prime rates aren’t directly comparable; lending practices vary widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the DTCC GCF Repo Index are traded on NYSE Liffe US. Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information; Tullett Prebon Information, Ltd. Investment-grade spreads that tightened the most… Issuer Symbol Coupon (%) ING Groep Citadel Macy's Retail Holdings Teva Pharmaceutical Finance Netherlands Iii BNP Paribas Citigroup Pacific Gas And Electric Bank of America INTNED CITADL M TEVA BNP C PCG BAC 6.000 5.375 2.875 3.150 5.125 5.350 5.400 3.875 Maturity April 16, ’49 Jan. 17, ’23 Feb. 15, ’23 Oct. 1, ’26 Nov. 15, ’49 May 15, ’49 Jan. 15, ’40 Aug. 1, ’25 Current 149 235 233 307 235 185 116 68 Spread*, in basis points One-day change –38 –17 –10 –10 –9 –9 –9 –8 Last week Stock Performance Close ($) % chg 153 n.a. 263 303 232 187 n.a. 81 ... ... … … ... 77.10 … 29.06 ... ... … … ... 2.11 … 3.42 266 102 n.a. 110 n.a. n.a. n.a. n.a. 16.85 17.95 … 71.69 169.80 ... 52.29 40.32 1.94 0.39 … –4.57 –0.73 ... 0.35 4.92 …And spreads that widened the most Energy Transfer General Electric Wells Fargo Bank NA CVS Health Apple Cox Communications ONEOK Comcast ETP GE WFC CVS AAPL COXENT OKE CMCSA 5.950 5.000 2.150 3.875 2.850 3.850 7.500 3.000 Oct. 1, ’43 Jan. 21, ’49 Dec. 6, ’19 July 20, ’25 May 6, ’21 Feb. 1, ’25 Sept. 1, ’23 Feb. 1, ’24 283 112 35 125 17 102 153 55 9 9 9 8 7 7 7 6 High-yield issues with the biggest price increases… Issuer Symbol EP Energy Valeant Pharmaceuticals International Noble Holding International J. C. Penney California Resources Talen Energy Supply Range Resources Sprint EPENEG VRXCN NE JCP CRC TLN RRC S Coupon (%) Maturity 9.375 May 1, ’20 5.500 March 1, ’23 5.250 March 15, ’42 5.875 July 1, ’23 8.000 Dec. 15, ’22 6.500 June 1, ’25 5.000 March 15, ’23 7.625 Feb. 15, ’25 Bond Price as % of face value Current One-day change Last week Stock Performance Close ($) % chg 76.813 88.406 61.000 96.438 77.250 85.500 100.125 106.625 1.81 1.53 1.25 1.19 1.00 1.00 0.91 0.89 75.750 86.094 n.a. n.a. 73.750 83.625 99.125 106.250 ... ... … 3.40 18.17 ... 17.87 5.95 ... ... … 1.19 4.13 ... –3.41 –0.34 90.000 95.176 107.960 112.125 105.125 108.250 103.938 88.813 –1.25 –0.97 –0.79 –0.63 –0.63 –0.56 –0.56 –0.56 89.250 n.a. n.a. 112.720 106.750 108.375 106.000 89.520 … 16.85 ... 10.03 ... 2.71 ... 14.81 … –2.38 ... –6.52 ... –3.90 ... 3.57 …And with the biggest price decreases CHS/Community Health Systems Mattel Cloud Peak Energy Resources Advanced Micro Devices Inmarsat Finance K. Hovnanian Enterprises Altice Financing S.A. CenturyLink CYH MAT CLDXX AMD ISATLN HOV ALTICE CTL 8.000 5.450 12.000 7.500 6.500 10.000 7.500 5.625 Nov. 15, ’19 Nov. 1, ’41 Nov. 1, ’21 Aug. 15, ’22 Oct. 1, ’24 July 15, ’22 May 15, ’26 April 1, ’25 *Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread. Note: Data are for the most active issue of bonds with maturities of two years or more Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. B12 | Tuesday, December 5, 2017 BANKING & FINANCE LIU XINGZHE/EPA/SHUTTERSTOCK The BTCC bitcoin exchange in Shanghai this year. Central bankers are unlikely to sit on the sidelines as bitcoin use expands. all London stocks. Still, size alone isn’t the danger. When bubbles have burst in the past, the effects depended both on their size and how much they relied on debt. The far-bigger dot-com bubble popped in 2000 with nasty results for the stock market, but the lack of leverage helped the U.S. economy avoid the standard definition of a recession, as it didn’t shrink for two consecutive quarters. central banks and regulators: Bitcoin might not crash. If the speculative fervor in the cryptocurrency is merely the precursor to it being widely used as an alternative to the dollar, it will threaten central banks’ monopoly on money. Bitcoin can’t carry out enough transactions speedily enough to become a true currency, but modifications to the code or another cryptocurrency might succeed. No central banker could allow that to happen, both because she would be out of a job and because it would be economically disastrous. Bitcoin enthusiasts tend to worry about the inflationary effects of central bank money printing, despite the absence of any significant inflation in the eight years since the Federal Reserve started to pump up its balance sheet. There is an irony in the fact that bitcoin creation is running at about 4% a year, while the Fed has begun to shrink the U.S. monetary base. F I f bitcoin crashes soon it won’t be a big problem. But the more the traditional financial system interacts with bitcoin, the more of a danger it will pose, as speculators borrow dollars to bet on bitcoin moves. There is another danger, perhaps even more serious from the point of view of the Central bankers, says Tony Yates, an economist and former Bank of England official, “are taking [bitcoin] seriously because they don’t want to lose control of the money supply.” Central banks can’t print bitcoin, so if the world switches away from fiat currencies, they would be unable to create new money to alleviate a crisis. If bitcoin ever threatens to become a runaway success, governments won’t stand by and watch the currencies they issue wither. The in-between outcome would be that bitcoin fails as a currency and finds a role as an alternative to gold, instead. If that is all bitcoin becomes, regulators will be less worried. Unfortunately for speculators, they should be less excited about it, too. ly . Bitcoin has been the ideal proving ground for investment’s most powerful advice: caveat emptor, or buyer beware. Individuals who lose money day trading a cryptocurrency hyped as a way to avoid central bank meddling can hardly expect to appeal to governing institutions when things go wrong. Watchdogs have intervened occasionally to restrict money laundering. But financial regulators have mostly steered clear. Regulators are unlikely to sit on the sidelines much longer, and that is a shame. People duped into putting a small amount of bitcoin into a worthless initial coin offering or persuaded to day trade bitcoin on margin are taught important lessons in trust and security. Aside from a change of heart on consumer protection, there are two decent reasons for them to interfere, both of which would have potentially catastrophic results for the survival of bitcoin and other digital currencies. The first and most important is the danger to the financial system as it becomes entangled with bitcoin. Those links are just starting to be developed, with dozens of new funds pitching bitcoin to mainstream investors, while futures contracts will next week open bets on bitcoin to ordinary speculators. The top 1,000 or so cryptocurrencies are valued at $350 billion, and if they all went to zero tomorrow banks would barely notice. To get a sense of the scale, if bitcoin repeats this year’s rise next year it would be valued at more than all Canadian-listed companies, or half the market value of or enthusiasts, bitcoin’s widespread use would be a welcome digital return to the 19th-century gold standard. Central bankers are more realistic, recognizing that it is politically impossible for authorities to ignore a crisis. The gold standard was suspended repeatedly by the U.K. whenever it became too onerous. The U.S. went further in the Great Depression, banning private holdings of gold coins and bullion for decades after its 1933 devaluation of the dollar. Morgan Stanley to Offer Automated Advice BY LISA BEILFUSS Morgan Stanley launched an automated-advisory service, the latest wealth-management firm to expand digital offerings in a bid for younger investors’ assets. The New York brokerage firm said its Access Investing “robo” service became available Monday to clients with at least $5,000 to invest. The service will charge 0.35% of assets annually. Fees exclude those levied by fund managers. By comparison, Bank of America Corp.’s Merrill Lynch charges 0.45% for a similar offering open to clients with at least $5,000. The robo service run by Wells Fargo & Co.’s no The first U.S. bitcoin futures will start trading next week, as dueling Chicago futures exchanges seek to cash in on surging investor interest in the digital currency. Cboe Global Markets Inc.’s new bitcoin futures will go live at 5 p.m. Central Time on Dec. 10, with the first full day of trading set for Dec. 11, the firm said Monday. That gives Cboe a head start on CME Group Inc., its larger crosstown rival, which plans to launch its own bitcoin futures on Dec. 18. The Commodity Futures Trading Commission on Friday allowed both exchange operators to go forward with bitcoin futures. Cboe is working with online brokerages to allow retail investors to start trading its bitcoin futures as soon as possible, a spokeswoman for the company said. Bitcoin futures would allow traders to bet on rises and falls in the digital currency, similar to the way oil, corn or gold futures work. The emergence of bitcoin futures could make it easier for both Wall Street banks and small investors to trade bitcoin. A huge price run-up this year has sparked intense investor interest in bitcoin, which soared to more than $11,800 at one point on Sunday, up more than 12fold from the beginning of 2017, according to CoinDesk. The currency was trading at $11,510.54 late Monday. Still, many financial institutions remain wary of bitcoin due to its volatility, uncertain regulatory status and lingering association with illicit activity. Skeptics call it a bubble. Announcements by Cboe and CME that they would seek to launch bitcoin futures were seen as a vote of confidence in the digital currency. Cboe was the first to unveil its plans, in August, while CME followed in October. The race between the two rivals could determine which exchange establishes the dominant bitcoin futures contract. CME is the world’s largest exchange company, with a market capitalization of $51 billion and roots in the mid-19th century. Cboe, valued at $14 billion, was founded in 1973 as the Chicago Board Options Exchange. Its first trading floor was a space that had once been the smoking lounge for the Chicago Board of Trade— an exchange that is now part of CME. Traders Beware, a Reckoning Awaits co Fo m rp m e er rs ci on al a us l, e on BY ALEXANDER OSIPOVICH STREETWISE | By James Mackintosh n- Bitcoin Futures Trading Starts Next Week wealth-management arm charges 0.50% and has a $10,000 account minimum. Robo pioneer Betterment LLC has no account minimum and charges 0.25% annually for its basic offering. Morgan Stanley’s advisers, like those at rivals, will have the ability to offer discounts. Brokers will receive referral bonuses for bringing clients onto the robo service. Executives said Morgan Stanley’s robo launch is meant to attract a new generation of clients, many of them the children of existing customers positioned to inherit significant wealth. “Access Investing is an opportunity for financial advisers to grow their book of business by making connections early,” said Naureen Hassan, chief digital officer. The industry has long struggled with retaining ac- the end of 2016 and will have $385 billion in the next five years, eating into the multitrillion-dollar asset base of traditional brokerage firms. Similar to others’ robo offerings, Morgan Stanley’s automated-investing service relies on an algorithm to gauge an investor’s risk appetite and then recommend an appropriate portfolio of funds that it automatically rebalances. Morgan Stanley’s robo service will offer access to call centers in Florida and Utah, staffed by representatives who will offer basic assistance. The representatives aren’t financial advisers. In addition to offering a selection of passive mutual funds Executives said the launch of the service is meant to appeal to younger investors. counts that move from parents to children who grew up in the digital age. Researcher Cerulli Associates has estimated the robo advice industry had more than $80 billion in assets by and exchange-traded funds that aim to track market indexes, Morgan Stanley’s menu includes actively managed products that seek to beat the market. The service also offers “thematic portfolio” options, with themes including sustainability and gender diversity. Executives say such options are meant to appeal to younger investors who show particular interest in socially responsible investing. Morgan Stanley said the Access Investing robo service is a core piece of its developing digital strategy. The offering’s capabilities, which include goals-based planning tools, will be available to all clients, executives said. In London, Bankers Are Losing Hope of Special Treatment After Britain voted to leave the European Union, the U.K.’s finance industry launched a lobbying offensive: The EU had better help London’s banks, or the Continent’s businesses and consumers would suffer. That pitch hasn’t worked. Bankers in London, in private conversations and public comments, say they are now resigned to not getting any special treatment. They are moving from contingency planning for Brexit to executing those plans. “We are prepared for the most severe outcome,” Barclays PLC Chairman John McFarlane told a U.K. Parliament committee. The reason for the gloom: European officials are playing hardball, saying financial services aren’t high on their list of Brexit worries, according to people familiar with their thinking. And there appears to be muted political appetite in the U.K. to press the matter. British Prime Minister Theresa May traveled to Brussels on Monday for talks with EU counterparts aimed at breaking a deadlock, but they failed to reach a deal to advance the negotiations. Mrs. May said talks would resume later this week. YVES HERMAN/REUTERS BY MAX COLCHESTER EU officials, meeting in Brussels Monday, say financial services aren’t a priority in Brexit talks. But even if those talks succeed, the focus will then likely switch to several more-pressing matters, including strategies for keeping complex manufacturing supply chains humming across the Continent, European officials say. Britain’s bank lobbyists have argued that centralization of financial services in London promotes efficiencies that keep costs down for consumers across the trade bloc. They also say that bruising London’s investment banks will harm an EU attempt to create a capital-markets union across the trade bloc. But those arguments haven’t resonated. On Wednesday, Andrew Bailey, one of the U.K.’s top banking regulators, said that his European counterparts “don’t put a lot of weight” in them. Michel Barnier, who is leading the negotiations for the EU, recently played down the notion that financial services would get special treatment during negotiations. “Brexit means Brexit everywhere,” he said. For years, the U.K. acted as Europe’s de facto investment bank. About 90% of euro-denominated interestrate swaps flow through London-based clearinghouses. Banks from across the world built up offices in London to service clients across Europe and beyond. After Brexit, banks based in the U.K. are likely to lose their right to sell to customers across the EU. There is a pricey but practical solution: Create a hub in the EU. Bankers and capital are considered relatively mobile. “There will be pragmatic solutions found,” says Jean Pierre Mustier, chief executive of Italy’s UniCredit SpA. The initial unwinding is unlikely to be huge, bankers say. The Bank of England expects 10,000 banking jobs to have left by March 2019, the time of the U.K.’s expected departure. That is about 2% of people employed in the City of London. Big banks’ preparations are well under way, according to people familiar with them. JPMorgan Chase & Co. has leased more office space in Frankfurt. Goldman Sachs Group Inc. booked spaces in a school in the German city for future employees’ children. Morgan Stanley is pushing ahead with license applications in Europe. Barclays is hunting for board members for its future European hub in Ireland. The scaling-up of these operations will be gradual. Bank of America Corp. plans to move about 200 people in sales and trading to Paris and Frankfurt. The bank has leased office space in Paris that will take several months to refurbish. It aims to start putting more staff into its Paris office in the latter half of next year, according to a person familiar with the matter. It is unclear how many staffers will have to move into its EU hub. “We’ll see what actually happens and what they allow us to do and don’t do,” Bank of America Chief Operating Officer Tom Montag said at a recent conference. Over time, European regulators could require that international banks bolster their presence in the EU. The European Central Bank has warned lenders not to game the system by setting up entities that just shuffle risk back to their London offices. “We won’t accept more inventive setups,” Sabine Lautenschläger, a member of the ECB’s executive board, said recently. Bank executives believe it could take years for negotiations over future trade agreements between the U.K. and the EU to play out. And banks don’t have time on their side. It can take about two years to create a fully licensed and capitalized European banking hub, according to a study by PricewaterhouseCoopers LLP. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. Tuesday, December 5, 2017 | B13 * * * * HEARD ON THE STREET Email: firstname.lastname@example.org WSJ.com/Heard FINANCIAL ANALYSIS & COMMENTARY Broadcom Can Wait on Qualcomm CVS-Aetna Is More Hang Ups Qualcomm's closing share price $80 60 40 20 2010 Source: FactSet price is best understood as Qualcomm’s pre-Apple valuation, meaning the peak value the stock reached just before a bitter legal battle erupted between Qualcomm and its largest customer—which also happens to be the world’s largest company by market value. That price is unlikely to get the deal done. Many Qualcomm shareholders and analysts have signaled a price closer to $80 as more palatable, but Broadcom has good reason not to rush things. It has no competitors on the deal—few, in fact, could manage a transaction of this size. And serious problems weighing on Qualcomm’s share price aren’t going away anytime soon. Its legal battle with Apple escalated last week with the companies filing fresh patent-infringement lawsuits against one another. Another unidentified company also has joined Apple in withholding royalty payments from Qualcomm. Qualcomm’s pending acquisition of NXP Semiconductors also has turned into a complication. That deal, struck this year, looked like a solid move by Qualcomm to diversify its business and make use of trapped, offshore cash. But the proposed combination still hasn’t cleared key regulatory hurdles, and NXP now has activist shareholders clamoring for a better price. Qualcomm can afford to offer more, but a significant boost now runs the risk of looking like an effort to create an effective poison pill to financially sabotage Broadcom’s designs on it. Still, Broadcom’s patience isn’t without risk either. Pressing an alternative slate of directors now is effectively a bet that Qualcomm’s shareholders are disillusioned enough to vote against the company’s current management. Broadcom will still have to make the case of why it thinks it can do better. —Dan Gallagher EV-Battery Makers Face Price Crunch Electrifying Average price for electric-vehicle battery packs $1,000 per kWh 800 600 400 200 0 Panasonic may be best positioned to defend itself against a flood of supply, thanks to superior technology—its cells have a higher energy density— greater scale and a captive client in Tesla, though having its fate so tied to a single car maker carries its own risks. But the two Korean makers are catching up. LG Chem, in particular, has improved the energy density of its battery cells by more than 70% since 2011, according to Deutsche Bank. Low prices aren’t a problem for the battery makers if they kick-start electric-car sales. But to drive production costs low enough to foment an EV revolution may require an advance beyond the current lithium-ion technology. That makes picking winners in the EV-battery race difficult indeed. —Jacky Wong Next on the corporate agenda at CVS Health Corp.: lightening up the balance sheet. CVS announced new financial details from its $69 billion agreement to buy Aetna Corp. on Monday morning. Investor reaction was lukewarm: CVS shares fell nearly 5%. That reaction is understandable since CVS will see little short-term benefit from the acquisition, which is set to close in the second half of next year. Management doesn’t expect a boost to earnings per share until two years after the deal closes. There is little overlap between the Aetna and CVS business models, so annual synergy targets of $750 million are modest for a deal of this size. So much for the income statement. What about the balance sheet? Since 70% of the deal consideration is in cash, CVS will need more than $45 billion in new debt, boosting the company’s net borrowings to near $70 billion. After adjusting for operating leases for CVS retail stores, net leverage is expected to rise to 4.6 times earnings before interest, taxes, depreciation and amortization. CVS Chief Executive Larry Merlo plans to reduce leverage to a more reasonable three times Ebitda as soon as possible. That is an ambitious but manageable goal. CVS is halting share buybacks and has pledged not to raise its dividend until that target is reached. That won’t help the share price in the short term, but the decision will speed up the balancesheet cleanup. Investors shouldn’t lose sight of the deal’s rationale. The premise is a long-term reshaping of the business model rather than financial engineering. That means the balancesheet cleanup should coincide with the benefits of strategic investment in the new business model. Meanwhile, the absence of near-term financial benefits means the shares aren’t particularly expensive for believers in the long-term strategic vision. CVS trades at about 15 times trailing earnings, well below its 10-year average. Shareholders’ patience should be rewarded. —Charley Grant OVERHEARD co Fo m rp m e er rs ci on al a us l, e on Lower battery costs will help electric vehicles go mainstream, but not before the leading battery makers feel the pain. Though the battery pack remains the single costliest part of an electric car, the price has fallen 80% since 2010, to $227 a kilowatthour, according to McKinsey. Tesla claims an even lower $190, and the price could fall further as the company ramps up production. Increased supply, especially from China, has been a key driver, and there is more coming. Global EV battery supply could double to 260 gigawatt-hours by 2020, Bernstein estimates, outstripping demand by more than 70%. Such aggressive investment will create headwinds for the three market leaders, LG Chem, Samsung SDI and Panasonic, Tesla’s sole sup- Tortoise Than Hare ly . There are two things that Broadcom Ltd. made very clear Monday morning: It is still very interested in buying Qualcomm Inc., but it is in no particular hurry to do so. The former is no surprise. Broadcom’s unexpected $105 billion offer to buy Qualcomm a month ago was widely seen as an opener, particularly given Qualcomm’s lack of enthusiasm at the prospect of being taken over by its onetime legal foe. Broadcom then indicated that it was in for the long haul, a fact confirmed Monday with its announcement of an alternative slate of directors for Qualcomm’s board. The announcement, however, didn’t include a change to Broadcom’s bid price. That remains at $70 a share, $60 of which is in cash. That A million dollars isn’t cool. You know what’s cool? A billion dollars. Cameron and Tyler Winklevoss, who famously sued Facebook founder Mark Zuckerberg over the idea behind the social network, are now billionaires themselves. Sort of. Various outlets estimated Monday that a hoard of bitcoins the twins purchased with their share of a legal settlement with Mr. Zuckerberg is now worth over $1 billion, making them the first cryptocurrency billionaires. If the math were correct, the duo still would have a net worth that is about one-seventieth that of their onetime nemesis. But it isn’t correct because, despite sharing the same DNA, the twins are two different people and therefore have only half a billion apiece. In other words, bitcoin will have to hit about $23,000 to give them each billionaire status. Now that would be cool. Dow Gains, but Tech Knocks S&P, Nasdaq Treasurys Decline as Tax Plan Advances 2010 Source: McKinsey ’11 ’12 plier. They have a technology margin over Chinese rivals, but it isn’t insurmountable. China’s Contemporary Amperex Technology, for example, meets standards high enough to supply BMW. And Chinese makers have advantages of their own, starting with economies of scale. The country is by far the biggest market for elec- ’13 ’14 ’15 ’16 THE WALL STREET JOURNAL. tric cars, and protectionist policy has effectively shut out foreign battery makers. Beijing’s relentless efforts to secure key raw materials like lithium, cobalt and graphite may sharpen its makers’ edge, and the government could sharpen it further by encouraging consolidation in the fragmented industry. MARKETS no The Dow Jones Industrial Average closed at another record Monday after the Senate passed a tax bill, while declines in shares of technology companies MONDAY’S weighed on MARKETS the S&P 500 and Nasdaq Composite. Investors also dialed back on assets that many consider havens, such as U.S. Treasurys and gold, while lifting the dollar. The Senate passed revisions to the U.S. tax code over the weekend after Republicans overcame internal divisions, moving one step closer to pushing through $1.4 trillion in tax cuts. The House and Senate still need to reconcile competing versions of the tax plan, something GOP leaders hope to do by Christmas. Cuts to the corporate tax rate could boost earnings growth and help the long U.S. stock rally keep going, investors and analysts say. “Obviously, for corporates, it’s a windfall,” said Ronald Temple, head of U.S. equity at Lazard Asset Management. “It’s unlikely to materially change the growth trajectory, but it is likely to materially change earnings growth.” The Dow industrials rose 58.46 points, or 0.2%, to 24290.05, its 64th record close this year. The S&P 500 fell 2.78 points, or 0.1%, to 2639.44, after being up much of the day, and the tech-heavy Nasdaq Composite slipped 72.22 points, or 1.1%, to 6775.37. Analysts say the Republican plan to cut corporate tax rates has contributed to a shift out of stocks that have outperformed this year into those expected to benefit the most from the overhaul. Some analysts also say technology stocks in the S&P 500, which have nearly doubled the broad index’s gains this year, have been vulnerable to a pullback. Banks, which some analysts say could be among the biggest beneficiaries of a tax cut, rallied, with the KBW Nasdaq Bank Index of large U.S. lenders rising 2.1% for its fifth consecutive session of gains. Shares of technology companies in the S&P 500 slid 1.9%, posting the steepest daily loss of the broad index’s 11 sectors. Meanwhile, the WSJ Dollar Index, a measure of the dollar against a basket of 16 currencies, gained 0.2% while government-bond prices fell, n- BY CHRISTOPHER WHITTALL AND AKANE OTANI Dow in the Driver’s Seat The Dow Jones Industrial Average rose on the prospect of tax cuts Monday. The Nasdaq Composite, which is heavy on the tech companies that have surged this year, declined. 1.5% Index performance on Monday 1.0 Dow 0.5 0 S&P 500 –0.5 –1.0 Nasdaq –1.5 9:30 10 11 noon 1 2 3 4 Some of the year’s best-performing tech stocks have tumbled over the past week. Past ﬁve days Stock -2.5% Apple -5.2 Amazon.com -6.3 Facebook -12.8 -8.8 Year to date Nvidia PayPal Source: FactSet sending the yield on the benchmark 10-year U.S. Treasury note to 2.379% from 2.363% on Friday. Yields rise as prices fall. A tax overhaul could help 46.6% 51.2 49.0 74.9 79.8 THE WALL STREET JOURNAL. boost economic growth, lifting the dollar. But it also could send bond yields higher, analysts say, in part by expanding the federal budget deficit, which could push the government to sell more bonds. Other havens retreated. Gold for December delivery fell 0.4% to $1,274.30 a troy ounce. With U.S. stock markets at or near highs, some investors say they see greater value in other regions. Jeroen Blokland, a portfolio manager at Dutch asset manager Robeco, said that given economic momentum is already building, the Senate tax bill “is another sign for investors that this rally can continue for quite some time even though valuations are stretched.” Still, those high valuations in the U.S. have led him to favor European and Japanese stocks. “Japan is doing great, and Europe has some catching up to do,” Mr. Blokland said. The Stoxx Europe 600 climbed 0.9% Monday, lifted by broad gains across sectors. Some Asia-Pacific stock markets struggled after pockets of selling last week, notably in technology. Japan’s Nikkei Stock Average closed down 0.5% as tech stocks again came under pressure. At midday Tuesday in Tokyo, the Nikkei was down 0.4%. At that time, Hong Kong’s Hang Seng Index was also down 0.4% and South Korea’s Kospi was flat. U.S. Oil Resists $60 Barrier LISI NIESNER/EPA/SHUTTERSTOCK BY ALISON SIDER AND CHRISTOPHER ALESSI Russia’s Alexander Novak and Khalid Al-Falih of Saudi Arabia Oil prices fell as the market appeared to look past OPEC’s agreement late last week to extend its COMMODITIES crude production c u t s through the end of 2018. U.S. crude futures fell 89 cents, or 1.53%, to $57.47 a barrel on the New York Mercantile Exchange. Brent crude, the global benchmark, fell $1.28, or 2.01%, to $62.45 a barrel on ICE Futures Europe—its biggest daily drop since Oct. 6. The moves reversed gains after the Organization of the Petroleum Exporting Countries and a group of non-OPEC producers led by Russia agreed last week to extend a deal to hold down crude output by nearly 2% through the end of 2018. But higher prices could spur higher production from places such as the U.S. and Canada, something that could cap price increases. “It seems as if as WTI gets close to $60 and Brent pushes toward $65, worries that some of the cuts will basically be offset by the production expected to come seems to take some of the wind out of the sails of the market,” said Gene McGillian, research manager at Tradition Energy. In the second half of 2017, higher compliance with the pact and a combination of stronger macroeconomic fundamentals, tighter demand and an emergent geopolitical risk premium helped drive prices up. Oil prices have advanced roughly 20% since September. But now some analysts say there are few catalysts to push prices higher in the near term. BY DANIEL KRUGER U.S. government bonds weakened Monday as investors analyzed the potential effect of the Republican effort to revamp taxes. The yield on CREDIT the benchmark MARKETS 10-year U.S. Treasury note rose for the fourth time in five days to 2.379%, from 2.363% Friday. Bond yields rise as prices fall. Bond prices slipped after the Senate passed revisions to the U.S. tax code Saturday and moved one step closer to pushing through $1.4 trillion in tax cuts. The House and Senate still need to reconcile competing versions of the tax plan, something GOP leaders hope to do by Christmas. Investors sold bonds as stocks climbed, with some analysts and investors saying the lower corporate tax rates could lift company earnings and boost growth, adding to the appeal of riskier assets. Some investors say that the tax overhaul could help push wages higher, fueling inflation, which erodes the purchasing power of bonds’ fixed payments. Analysts also expect the overhaul to require additional government borrowing, which could push yields higher as the supply of bonds increases. 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 $129,719,264,000 $118,851,772,700 $42,000,339,000 $36,000,284,700 $538,501,100 $427,355,700 $100,000,000 $300,000,000 99.673917 99.266944 (1.290%) (1.450%) 1.312% 1.481% Coupon equivalent 52.02% 5.56% Bids at clearing yield accepted 912796NU9 912796PJ2 Cusip number Applications Accepted bids " noncomp " foreign noncomp Auction price (rate) Both issues are dated Dec. 7, 2017. The 13-week bills mature on March 8, 2018; the 26-week bills mature on June 7, 2018. For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com. THE WALL STREET JOURNAL. B14 | Tuesday, December 5, 2017 MARKETS Tax Cuts Drive Stock Rally U.S. stocks have surged in recent sessions as lawmakers have gotten closer to passing tax cuts, with investors preferring shares of companies they expect to beneﬁt the most from a lower rate. Retailing 35.0% Telecom 33.7% Business services 32.5% Utilities 31.5% Staples retailing 31.3% Health-care equipment and services 30.2% Materials 29.8% Diversiﬁed ﬁnancials 29.3% Media 29.1% Transportation 28.8% Banks 28.6% Food, beverage and tobacco 27.8% Consumer services 27.5% Household and personal products 27.0% Capital goods 26.7% S&P 500 26.2% Durables and apparel 23.3% Insurance 23.0% Technology hardware 22.8% Software and services 19.8% Semiconductors 19.3% Pharma and biotechnology 18.9% Automobiles and components 17.1% Energy 14.9% REITs 3.5% Companies with the highest and lowest effective tax rates* 25% Dow industrials 20 S&P 500 ﬁnancials 15 Dow transports Russell 2000 10 5 0 –5 Jan. Feb. March April May June July Aug. Sept. Oct. TechnipFMC Kinder Morgan 120% 100 80 Micron Technology Lam Research 60 40 S&P 500 technology Electronic Arts 20 0 Jan. Feb. March April May June July Aug. Sept. Oct. Mosaic HIS Markit Baxter International Date streak ended October 14, 1987 Streak length 715 days 293 November 14, 1991 202 44.0% March 29, 1994 296 July 22, 1996 400 October 24, 1997 318 2.8% May 7, 2004 261 2.3% November 8, 2007 328 2.2% May 19, 2010 215 August 1, 2011 225 January 31, 2014 274 December 4, 2017 363 2.1% Electronic Arts Dec. 44.1% 2.2% Carnival Nov. January 19, 1990 43.8% Broadcom Dec. Tech companies, which tend to pay a relatively low effective tax rate, have given back some of this year’s share-price gains. co Fo m rp m e er rs ci on al a us l, e on 44.9% Humana Nov. The Dow industrials have been trading above their 200-day moving average for 363 straight sessions, their longest such streak since 1996. 46.8% Centene Shares of transportation companies, small ﬁrms and ﬁnancials have jumped after lagging behind for much of the year. ly . Effective tax rate by industry group* *Based on three-year trailing dollar-weighted effective tax rate Sources: Standard & Poor’s, Thomson Financial, FactSet, Credit Suisse (effective tax rates); FactSet (indexes, stocks, streaks) no n- Creating a legacy is hard. Leaving one, even harder. We know, because we know you well. Knowing our clients well gives us the insight to help with their wealth—and their lives. We understand that the transfer of wealth between generations has an enduring impact, so we look at every angle to identify the strategy that works for today and well into the future. 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