. TUESDAY, MAY 8, 2018 ~ VOL. CCLXXI NO. 107 * * * * * * DJIA 24357.32 À 94.81 0.4% NASDAQ 7265.21 À 0.8% STOXX 600 389.51 À 0.6% 10-YR. TREAS. g 1/32 , yield 2.950% OIL $70.73 À $1.01 GOLD $1,312.20 g $0.50 Red Carpet Welcome for Putin’s Fourth Term as Russia’s President What’s News Business & Finance alueAct has built a roughly $1.2 billion stake in Citigroup, as the investor bets on the bank’s strength as a service provider to corporations. A1 V Buffett is still the face of Berkshire, but behind the scenes his deputies are frequently calling the shots. B1 U.S. oil prices topped $70 for the first time since 2014 amid buoyant growth and geopolitical tensions. B11 U.S. stocks climbed, led by technology shares. The Dow finished the day up 94.81 points at 24357.32. B11 SEC commissioner Piwowar, a Republican critic of postcrisis regulations, plans to step down in July. B10 IFF agreed to buy Israel’s Frutarom for $6.4 billion, giving the flavoring maker a foothold in natural foods. B3 Valeant will change its name to Bausch Health amid an effort to remake itself. B2 World-Wide European allies were bracing for the U.S. to withdraw from the Iran nuclear accord, after Trump said he would announce his decision Tuesday. A1 Iran’s president said that his country would fiercely resist efforts to contain its regional influence. A7 Hezbollah and its allies won a majority of seats in Lebanon’s parliamentary election, the Shiite group said. A9 New York’s attorney general resigned after the New Yorker published an article in which four women alleged he physically abused them. A1 FOOTSTEPS: Vladimir Putin was welcomed to the inauguration ceremony Monday for his fourth term as Russian president in the Grand Kremlin Palace in Moscow. Higher oil prices have given Mr. Putin more room to maneuver even as tensions grow with the U.S. A7 Activist Investor Sets Sights on Citi ValueAct Capital bets big on bank’s ability to grow as a service provider to companies U.S. crude-oil futures BY DAVID BENOIT AND CARA LOMBARDO Activist investor ValueAct Capital Partners LP has built a roughly $1.2 billion stake in Citigroup Inc., a bet that the giant bank’s strength as a service provider to corporations will enable it to thrive in the post-crisis era and make up ground its shares have lost in recent years. BREWING: Starbucks is selling Nestlé the rights to offer packages of its coffee and tea in retail stores for more than $7 billion. B1 Global retail value of packaged coffee sold, by company in 2017 Starbucks’s comparable-store sales growth at its U.S. cafes* Nestlé 10% $22.6 billion JDE 9.6 Lavazza 2.5 2.5 2.1 The administration plans to step up prosecution of parents who cross into the U.S. illegally with their children, separating more families. A3 Kraft Heinz 1.9 The White House will send a proposal to the House to cut federal spending by $15 billion, roughly half of which would come from a children’s health insurance program. A4 The NRA named Oliver North, the retired Marine and political commentator, as its next president. A3 Markets............. B11-12 Opinion.............. A15-17 Sports....................... A14 Technology............... B4 U.S. News............. A2-6 Weather................... A13 World News........ A7-9 > s Copyright 2018 Dow Jones & Company. All Rights Reserved Tchibo 1.8 Kapal Api 1.7 Strauss 1.6 Keurig 1.5 8 6 4 iar with the investment. Still, the quarterly letter to its investors details a view of an evolving industry that has often led ValueAct to request a board seat. The letter doesn’t call for any significant strategic changes, though it suggests the bank could boost its plan to return cash to shareholders via buybacks and dividends to about $50 billion from $40 billion. The firm had disclosed an $80 million stake in Citigroup as of the end of December, but it hadn’t been clear it would bulk up the stake to one of its biggest investments. A spokeswoman for New York-based Citigroup said: “We have been having constructive conversations with ValueAct and welcome them as investors.” Mr. Corbat, who became CEO in 2012, has been focused on increasing profitability and reshaping the bank. He worked to resolve Citigroup’s difficulties with the Federal Reserve’s stress tests, which the bank failed in 2012 and 2014. He has also championed growth initiatives, such as Mexican retail banking and Please see CITI page A4 Big banks beat smaller rivals on stock-trading revenue... B10 0 2011 ’12 ’13 ’14 ’15 ’16 ’17 ’18 *Change from previous year; 2Q 2018 ended April 1, 2018 Sources: Euromonitor (value); Starbucks (sales) Private-Market Peril: Sketchy Brokers And Lost Savings Ray Kay, who works as a financial adviser in Beverly Hills, Calif., advertised a purportedly low-risk, high-income investment. There were a few points Mr. Kay omitted. He used to be called Raymond L. Kotrozo. Under that name, he was barred from the securities industry for allegedly running a fraud, according to public records, and later fined $5,000 for breaking that ban. One more thing: Regulators say the investment he $71 a barrel Settle price $70.73 70 69 6 p.m. midnight Sunday Monday noon Source: FactSet THE WALL STREET JOURNAL. Iran vows to resist Trump push for concessions............. A7 Hezbollah, allies see strong gains in Lebanon vote.......... A9 Abuse Claims Fell New York AG BY MIKE VILENSKY New York state Attorney General Eric Schneiderman abruptly resigned Monday night after the New Yorker published an article in which four women alleged he physically abused them. Mr. Schneiderman denied the allegations and said they were unrelated to his work as attorney general. But he said in a statement that the accusa- tions “will effectively prevent me from leading the office’s work at this critical time.” His decision followed calls from New York leaders including Gov. Andrew Cuomo, a fellow Democrat, to step down. The governor said he would ask a district attorney to begin an investigation immediately. As the top law-enforcement officer in the state of New York, Mr. Schneiderman, 63 years old, was one of the leading reg- ulators of Wall Street and has been a prominent critic of the Trump administration. He also presided over efforts for the Weinstein Co. to be acquired and condemned cofounder Harvey Weinstein following allegations that he sexually assaulted women. Mr. Weinstein has said he didn’t engage in any nonconsensual sex. The office of the New York attorney general represents one Please see STATE page A2 When the Crowd Isn’t Wise, There’s Wikipedia Court i i i Little-known jurists try to keep peace at internet encyclopedia BY CORINNE RAMEY BY JEAN EAGLESHAM AND COULTER JONES President Trump’s tweet Monday on the Iran deal hit oil’s climb. B11 2 Marketed to individual investors, ‘private placement’ was a Ponzi, SEC said The American pastor Turkey accuses of colluding with terrorist groups was remanded in custody after a second day of trial. A8 CONTENTS Banking & Finance. B10 Business News B3,5-6 Capital Journal...... A4 Crossword.............. A13 Heard on Street. B12 Life & Arts....... A11-13 ValueAct, which has built the position over the past four to five months, continues to boost it “opportunistically,” according to a letter to its own investors reviewed by The Wall Street Journal. The stake amounts to about 0.7% of Citigroup, which has a market value of $175 billion. The San Francisco investment fund has been talking to management and supports Citigroup Chief Executive Michael Corbat, partially because he rose through what it views as the bank’s crown jewel, the part of the bank that works closely with large corporate clients, according to people famil- Starbucks Grinds Out Nestlé Deal JM Smucker Lawyers advising Trump in Mueller’s Russia investigation hope to decide by May 17 whether he should testify, Giuliani said. A5 But some European officials are holding out hope that Mr. Trump, after leaving the agreement, would move slowly to reimpose sanctions, which would leave more time for negotiations. Mr. Trump tweeted Monday that he would announce his decision at 2 p.m. Tuesday. The message came as British Foreign Secretary Boris Johnson made a last-minute appeal to save the accord, including meetings with Vice President Mike Pence and Secretary of State Mike Pompeo, Please see IRAN page A7 Brake on Run-Up Starbucks Trump inserted himself into Tuesday’s GOP Senate primary in West Virginia, urging voters to reject former coal executive Blankenship. A5 Trump Readies Decision On Iran pushed was a Ponzi scheme, one of the biggest in recent years. The investment involved a private placement, a kind of deal that has boomed amid a fervor for private capital markets. Businesses use private placements to raise money for a wide range of projects, from real estate to oil and gas development, so much so that more money is being raised privately now than in the public markets. Most private placements appear legitimate. For sophisticated investors such as pension funds they offer the Please see BROKER page A10 Wikipedia editors got locked in a dispute several months ago about the biographical summary boxes that sit atop some pages of the online encyclopedia. The tiff quickly turned heated. “Your grammar is frankly awful,” said one editor while discussing filmmaker Stanley Kubrick’s box. “This is just another throwaway, unreliable, unattributed pile of stinking horse- On the one hand... shit,” said another editor during a dispute about actor Cary Grant’s box. Foul language flew. The argu- ments spiraled out of control. So another editor brought the matter to the online encyclopedia’s top jurists. “Let’s call it the Wikipedia Supreme Court,” says Alan Sohn, a longtime Wikipedia editor who wasn’t involved in the dust-up. “There are cases or situations that are equivalents of Brown v. Board of Education.” Wikipedia, the vast online crowdsourced encyclopedia, has Please see COURT page A10 INSIDE AFP/GETTY IMAGES The Trump administration is seeking new Nafta rules that would penalize Mexico’s auto industry unless it boosts hourly pay to about $16. A2 YEN 109.09 By Michael R. Gordon, Felicia Schwartz and Ian Talley ALEXANDER ZEMLIANICHENKO/PRESS POOL//ASSOCIATED PRESS Elliott is pushing to take Athenahealth private with an offer valuing the health-care software firm at about $6.5 billion. B1 EURO $1.1923 Washington’s European allies were bracing for the U.S. to withdraw from the Iran nuclear accord, after President Donald Trump said he would announce on Tuesday his decision on the landmark agreement that he has repeatedly condemned. Comcast is getting the pieces in place to make a hostile bid for 21st Century Fox’s entertainment assets should it choose to do so. B1 Starbucks is selling the rights to offer its coffee and tea in grocery and retail stores to Nestlé for more than $7 billion. B1 HHHH $4.00 WSJ.com DON’T OVERTHINK THE NBA PLAYOFFS GENE TESTS FOR DEPRESSION TREATMENT WHAT’S AT STAKE IN HASPEL ATTACK SPORTS, A14 LIFE & ARTS, A11 OPINON, A15 . A2 | Tuesday, May 8, 2018 * **** THE WALL STREET JOURNAL. U.S. NEWS Nafta Talks Turn on Mexican Auto Wages The U.S. is seeking to complete its overhaul of the North American Free Trade Agreement with new rules that would penalize the Mexican auto industry—unless it boosts wages to about $16 an hour. President Donald Trump’s administration is winning some support from Detroit auto makers for its Nafta proposals by including terms that would favor U.S.-based manufacturers over Asian and European rivals that produce cars in the U.S. Support from Detroit might help the administration reach its goal of concluding a Nafta deal by mid-May, which could allow it to push the pact through Congress by year’s end. Under Nafta, U.S. manufacturers have produced cars and parts in Mexico, where wages are lower, but Mr. Trump’s administration is now seeking to force Mexican factories to pay more for labor—or send auto jobs back to the U.S. or Canada. Robert Lighthizer, the U.S. trade representative and lead ROGELIO V. SOLIS/ASSOCIATED PRESS BY WILLIAM MAULDIN The U.S. proposals are winning support from Detroit auto makers. negotiator for the administration, is reworking Nafta to require that 40% of the content of any car that trades duty free within the North American bloc must come from workers who earn above a particular wage level, according to industry officials familiar with the trade negotiations. In recent talks, the U.S. has discussed a wage floor of about $16 an hour, the officials said. By comparison, Mexican vehicle-assembly workers made less than $8 an hour on average in 2017, with those at parts plants making less than $4 an hour, according to the Center for Automotive Research, a research group. Cars that don’t have at least 40% of their content produced with labor at or above the wage floor would be ineligible for duty-free trade and be subject to tariffs at the border, according to the proposal. For light trucks, a higher amount—45% of the vehicle—would have to come from such higher-wage labor, the officials said. U.S. negotiators have struggled for months to write concrete rules to bring back auto jobs without granting special privileges to the U.S. or explicitly singling out Mexico. Mexican and Canadian officials had flatly rejected a previous Washington proposal that would have required high levels of U.S.-specific content in cars. U.S. officials have declined to discuss their proposals or the negotiating process in detail. But industry officials said a wage level of about $16 an hour is high enough to put a cap on Mexico’s labor-cost advantage in the industry, but low enough that U.S. and Canadian-made cars and parts don’t trigger tariffs at the border. Mexico’s auto industry— which includes major manufacturing operations run by auto makers from the U.S., Japan and elsewhere—rejected the latest U.S. wages proposal last week. The Mexican government, however, is open to a Nafta deal before its July 1 presidential election, and senior Mexi- Lava From Kilauea Volcano Remains on the March in Hawaii can officials are expected to introduce a counterproposal or compromise this week, when talks resume in Washington. Mexican Economy Minister Ildefonso Guajardo said Monday in Washington that officials are working on the auto rules as well as other disputed provisions in Nafta in hopes of achieving a comprehensive deal, adding that talks will continue as long as needed. The American Automotive Policy Council, which represents Fiat Chrysler Automobiles NV, Ford Motor Co., and General Motors Co., said it is encouraged by the latest version of the rules. U.S. auto makers would get credit for higher wages not only on the factory floor, but also in the areas of research and development, marketing and perhaps administrative work, industry officials said. White-collar work in North America could contribute up to 15% toward the car’s 40% labor threshold—which could potentially allow a car to qualify for duty-free treatment if 25% of its physical content were made with high-wage labor, the officials said. China’s Vice Premier To Visit Washington WASHINGTON—President Xi Jinping of China plans to dispatch his top economic aide next week to Washington to continue discussions over the continuing trade dispute with the White House. Vice Premier Liu He’s visit is slated to come after a team of U.S. trade officials traveled to China last week. The U.S. team returned without a significant breakthrough in the standoff over tariffs. President Donald Trump remains optimistic that a deal can be reached, White House press secretary Sarah Sanders said Monday. Mr. Liu visited Washington two months ago before he was named vice premier, but he didn’t meet with Mr. Trump and wasn’t able to stop Mr. Trump’s administration from moving forward with global steel and aluminum tariffs aimed at China. —Michael C. Bender Texas Economy Is Fastest Growing PLAYING WITH FIRE: The Leilani Estates subdivision was in the crosshairs again Monday. Over two dozen homes have been destroyed. U.S. WATCH MASSACHUSETTS Schools Have Liability In Suicides, Court Says Schools can be held liable for student suicides in certain circumstances, Massachusetts’ highest court said Monday in a ruling that also cleared the Massachusetts Institute of Technology of responsibility for the death of a graduate student who killed himself on campus in 2009. The Supreme Judicial Court said MIT can’t be blamed for the death of 25-year-old Han Nguyen, who jumped from the top of a campus building minutes after a professor confronted him about an offensive email. But the court found that schools can be liable if they fail to act after they become aware a student has attempted suicide while enrolled, or shortly before entering, or learn that a student had threatened to commit suicide. M Y L A G O S M Y W AY The court noted that Mr. Nguyen never told anyone at MIT that he planned to kill himself or tried to kill himself while enrolled at the school. Furthermore, he was living off campus instead of a dormitory under “daily observation,” the court said. —Associated Press NEW YORK CITY Two Men Exonerated In 1992 Convictions Two men sentenced to prison in 1992 for a Central Park rape that their accuser now acknowledges never happened returned to a courtroom Monday to have their convictions vacated. A judge in state Supreme Court in Manhattan exonerated VanDyke Perry and Gregory Counts, who had always maintained their innocence. Mr. Perry, then 21 years old, and Mr. Counts, then 19, were accused by a woman who said they and another man kidnapped and raped her in the park in 1991. There was no material evidence connecting the men to any assault. Mr. Counts contacted the Innocence Project, which in 2014 began investigating the case, later joined by prosecutors. Mr. Perry spent 10 years in prison before being paroled. Mr. Counts was paroled last year after 26 years in prison. —Associated Press CORRECTIONS AMPLIFICATIONS Baird Core Plus Bond Fund had a total return of minus 2.3% for the year to date, through May 3, and Baird Aggregate Bond was minus 2.39%. An Investing in Funds & ETFs report article on Monday about Baird manager Mary Ellen Stanek incorrectly reported both figures as positives. The linens Alessandra Branca showed in her room in the Kips Bay Decorator Show House are by Casa Branca for Sferra, and the white lettuceware teapot, cup and saucer are by Dodie Thayer for Tory Burch. An Off Duty article on Saturday about breakfast in bed incorrectly referred to the linens as Alessandra Branca Linens and incorrectly omitted “for Tory Burch” from the reference to the teapot, cup and saucer. Readers can alert The Wall Street Journal to any errors in news articles by emailing email@example.com or by calling 888-410-2667. 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: firstname.lastname@example.org NEED ASSISTANCE WITH YOUR SUBSCRIPTION? C AV I A R C O L L E C T I O N S LAGOS.COM | BLOOMINGDALE’S 59TH STREET By web: customercenter.wsj.com; By email: email@example.com By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat REPRINTS & LICENSING By email: firstname.lastname@example.org; By phone: 1-800-843-0008 GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS state and across the nation. “It’s actually Texas that’s driving much of the national numbers on manufacturing,” said Rob Martin, U.S. economist at UBS. “In part, with the further rise in oil prices, we’re seeing other energy fields coming online. The Permian Basin was first. We’re seeing increased activity in Pennsylvania, North Dakota [and] New Mexico as those fields become more profitable.” Texas added the most manufacturing jobs of any state from December 2016-2017, with payrolls rising by more than 16,000 over the period, Labor Department figures show. Though the state’s size is part of the story, it isn’t the whole story: Manufacturingemployment growth in Texas outpaced national growth beginning around mid-2017 on a percentage basis as well. Texas wrapped up 2017 with the fastest-growing economy in the U.S., propelled by a resurgence in oil extraction that lifted business across the state. The Lone Star economy grew at a 5.2% seasonally adjusted annual rate in the fourth quarter, with the mining industry the leading factor behind output gains, according to the Commerce Department. The sector helped buoy the state’s economic output over the year, after Texas had weathered several quarters of weak growth and even contractions. The economic recovery in Texas sheds light on how strong oil production in the Permian Basin is closely linked with other sectors, namely manufacturing, and fuels overall growth in the STATE Continued from Page One of the most powerful prosecutorial positions in the nation. The office has significant oversight of the financial and banking industries, both of which are largely based in and around in New York City. A spokesman for the office declined to comment. The New Yorker article quotes two women, Michelle Manning Barish and Tanya Selvaratnam, who said that Mr. Schneiderman choked and hit them and that they sought medical treatment. Two other women who spoke anonymously described violence in their relationships with Mr. Schneiderman as well. Ms. Selvaratnam, an author, said through a spokesperson: “After I found out that other women had been abused by Attorney General Schneiderman in a similar manner many years before me, I wondered, who’s next, and knew something needed to be done. So I chose to come forward both to protect women who might enter into a relationship with him in the future but also to raise awareness around the issue of intimate partner violence.” Ms. Manning Barish said in a tweet that she spoke up for her “daughter and for all the women. I could not remain silent.” Mr. Schneiderman wrote on Twitter in response to the story: “In the privacy of intimate relationships, I have engaged in role-playing and other consensual sexual activity. I have never engaged in non-consensual sex.” An outside public-relations firm hired by Mr. Schneiderman provided a statement from his ex-wife, Jennifer Cunningham. “I’ve known Eric for nearly 35 years as a husband, father and friend. These allegations are completely inconsistent with the man I know,” she said. “I find it impossible to believe these allegations are true.” Since President Donald Trump took office, Mr. Schneiderman has filed numerous lawsuits challenging the policies of Mr. Trump’s administration, including on immigration, pollution standards and birthcontrol insurance coverage. Last month, Mr. Schneiderman sought to expand his powers to prosecute people who have received a presidential pardon. He asked state lawmakers to change state law around New York’s “double jeopardy” policy, which bars state prosecutors from trying people for crimes for which they were already tried federally. Mr. Schneiderman is close ASSOCIATED PRESS SCOTT WIGGERS/APAU HAWAII TOURS/ASSOCIATED PRESS BY SARAH CHANEY Eric Schneiderman denied the allegations of physical abuse made by four women. to liberal activist groups and was expected to easily win reelection to a third term in November. A number of prominent Democrats were courted to run for Mr. Schneiderman’s seat in the hours following the publication of the allegations. Carrie Cohen, a former federal prosecutor in the Manhattan U.S. attorney’s office and former chief of the public integrity unit in the state attorney general’s office, is one person who has been approached about being a possible candidate, according a person familiar with the matter. Lawyer Manny Alicandro, who is running for the Republican nomination for attorney general, said: “I believe the accusers.” —Erica Orden, Nicole Hong, Kate King and Corinne Ramey contributed to this article. . THE WALL STREET JOURNAL. Tuesday, May 8, 2018 | A3 * * * * * * ADREES LATIF/REUTERS ©TIFFANY & CO. SWISS WATCHES SAGL 2018 U.S. NEWS A boy wept in the arms of a family member after he and others were caught illegally entering the U.S. near McAllen, Texas, on May 2. Migrant Families Face Separation Prosecution of parents is planned by Trump administration as way to deter illegal entries BY LAURA MECKLER AND ALICIA A. CALDWELL WASHINGTON—The Trump administration plans to step up the prosecution of parents who cross the U.S. border illegally with their children, separating more families in hopes of deterring such crossings, officials said. The policy has been under review since the earliest days of the Trump administration and is part of the agency’s drive to punish people who arrive in the U.S. illegally and deter migrants from applying for asylum. Attorney General Jeff Sessions formally announced the policy in San Diego on Monday afternoon. “I have put in place a zero tolerance policy for our Southwest border. If you cross the border illegally, we will prosecute you. It’s that simple,” Mr. Sessions said, with protesters demonstrating in the background. In a speech in Scottsdale, Ariz., earlier on Monday, he warned would-be border crossers that if they didn’t want to be separated from their children, “don’t bring them across the border illegally.” Most of the adults who cross with children come from violence-ravaged Central American countries of Guatemala, Honduras and El Salvador and are seeking asylum in the U.S. Under the new policy, adults will still be able to apply for asylum, but they may be detained while their cases are considered. Immigrants who are prosecuted for crossing the border illegally also will still be able to apply for asylum. Children will be treated as if they had arrived in the U.S. without an adult. Unaccompanied children from countries other than Mexico and Canada are placed with family or in shelters while their cases are considered by immigration courts, a process that can take years. Unaccompanied children from Mexico and Canada are routinely sent home after just a few days. Under current policy, many families are released together while their asylum cases are processed. About 700 children have already been separated from their parents, according to the Department of Health and Human Services. The new policy is expected to result in far more children separated. The government is already facing a lawsuit over the practice of separating parents and children caught at the border. The American Civil Liberties Union has filed suit on behalf of an African woman and her young daughter separated after asking for asylum at a border crossing in San Diego, as well as a Brazilian mother and her son who were arrested crossing the border illegally in Texas, also seeking asylum. The civil-rights group last week asked a federal judge in San Diego to block the government from separating such immigrant families. A ruling hasn’t been issued. “The United States should not be prosecuting families when the result will be the separation of small children,” said ACLU lawyer Lee Gelernt. The new policy has been under discussion for months, but officials have held off in part because of the sensitivities of removing children from their parents. Last month, 9,647 people traveling in families were apprehended at the Southwest border, and almost 50,000 have been since the start of the fiscal year in October. A TIFFANY MOTHER’S DAY TIFFANY METRO WATCH 800 843 3269 | TIFFANY.COM NRA Names Oliver North as President BY DAN FROSCH Retired Lt. Col. Oliver North is set to become the next president of the National Rifle Association, the group said Monday. The announcement comes after the NRA set an attendance record this past weekend at its annual convention, with 87,154 people gathering in Dallas. President Donald Trump and Vice President Mike Pence spoke at the conference, as did Mr. North. The NRA’s board selected Mr. North after President Pete Brownell announced he wouldn’t seek a second term so Mr. North will step down as a Fox News commentator to lead the gun-rights group. he could tend to his family firearms business. Mr. North, who was endorsed by Mr. Brownell as his successor, will take over the position within a few weeks and leave his current role as a Fox News commentator immediately, the NRA said. “This is the most exciting news for our members since Charlton Heston became president of our association,” Executive Vice President and Chief Executive Wayne LaPierre said, calling Mr. North, “a gifted communicator and skilled leader.” The retired Marine is a high-profile choice for president of the group, whose most prominent figure has for years been Mr. LaPierre. Mr. North was convicted in 1989 for lying to Congress and obstructing justice over his role in the Iran-Contra scandal, but the verdicts were overturned on appeal. He has since forged a second career as a political commentator. The gun-control movement in the U.S. has had a resurgence since the mass shooting at a Parkland, Fla., high school in February, and some major corporations have severed ties with the NRA. But the gun group has also been revitalized in recent months. In the first full month after the Parkland shooting, the NRA Political Victory Fund raised almost $2.4 million, according to Federal Election Commission filings. The March total was the highest monthly haul in at least a decade, filings show. HANDCRAF TED MODERN CHAIN V I S I T O U R S O H O B O U T I Q U E AT 118 P R I N C E S T R E E T . A4 | Tuesday, May 8, 2018 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 Why Intelligence Pros Back the CIA’s Haspel Is she the consummate intelligence professional who is supported by six former heads of the Central Intelligence Agency and who once befriended Mother Teresa, among other achievements in a career with a James Bondlike arc? Or is she a reminder of what a Democratic senator calls “one of the darkest episodes in the CIA’s history,” tied to a period of brutal interrogation of terrorism suspects that almost no one wants to see repeated? Gina Haspel, the deputy director of the CIA, is both. Which is why her nomination to become head of the agency has become one of the most compelling personnel dramas in a capital that currently seems filled with them. The divergence of views of her nomination also raises an intriguing question: Why does Ms. Haspel have such broad support among intelligence and national-security pros, who normally don’t welcome such a searing public examination of their world? President Donald Trump in March nominated Ms. Haspel to take over the agency, setting off a drama that on Wednesday moves out of the shadows and into the klieg lights of a confirmation hearing before the Senate Intelligence Committee. The Haspel nomination is unusual in many respects. She is the first woman chosen to run the nation’s premier spy agency, and the first nominee to hail from the agency’s shadowy directorate of clandestine operations in ALEX WONG/GETTY IMAGES CAPITAL JOURNAL By Gerald F. Seib CIA nominee Gina Haspel, despite being tied to the post-9/11 ‘enhanced interrogation’ of terror suspects, has broad support from national-security officials. more than four decades. But what has made the nomination drama so intense is Ms. Haspel’s association with the CIA’s program of “enhanced interrogation” of terror suspects after the 9/11 attacks, a time when the nation was gripped by fear that more hits might be coming. Ms. Haspel reportedly was briefly in charge of one interrogation site and, more important in this debate, was chief of staff to the director of covert operations when he ordered the destruction of tapes of harsh terror interrogations in 2005. That history has made her nomination the subject of backroom debate in Washington in recent weeks—a debate so intense that it led Ms. Haspel to briefly consider over the weekend withdrawing her nomination rather than see it play out in public, an administration official said. More than 100 retired military officers opposed to the use of interrogation techniques that some describe as torture have signed a letter raising concerns about her nomination. T he more intriguing development, though, lies in a letter of support for Ms. Haspel signed by more than 50 former top nationalsecurity and intelligence officials who know her directly, including those six former CIA directors, three former directors of national intelligence and two former secretaries of state. Their experience spans Republican and Democratic administrations alike. The group includes some who have advised the Trump adminis- tration (former Secretary of State Henry Kissinger) and some who are among its most outspoken critics (John Brennan, who led the CIA under President Barack Obama). Why does Ms. Haspel have this kind of institutional support when her nomination is guaranteed to revive debate over terror interrogations most don’t want to revisit? Conversations with some of those involved suggest three answers. The first is the obvious one: In the tight knit intelligence community, Ms. Haspel is the kind of insider trusted by other insiders. Since joining the CIA in 1985, she served as a CIA station chief four times and helped run counterterrorism operations. (Her connection with Mother Teresa arose when in an overseas posting she tried to help the nun address a shortage of wheat in an undisclosed foreign land.) “It sends the right signal to people who do this particularly hard work for us, whether you’re at CIA headquarters or elsewhere in the world,” said Republican Sen. Roy Blunt, a member of the Senate Intelligence panel. S econd, intelligence pros see her bond to the intelligence world as a particularly important shield right now. The Oval Office is occupied by a president who has been openly skeptical of the intelligence community, while some of those around him view intelligence agencies as part of a sinister and hostile “deep state” out to destroy the president. Such a conspiracy theory will be hard to maintain after that same president has chosen the ultimate product of that system to run the intelligence community. Third, it is possible that Ms. Haspel, as someone inevitably associated with the history of harsh interrogation, may be well positioned to finally close the book on that period. When asked about it at her hearings, she is likely to say that “she does not believe interrogation should belong to the CIA,” says Marc Short, the head of legislative affairs at the White House. “They have another mission.” Intelligence veterans say the CIA didn’t want the post-9/11 interrogation job in the first place. Ms. Haspel can, as well as anyone, declare it doesn’t want to travel that road again. Trump Will Seek to Rescind $15 Billion in Spending BY KRISTINA PETERSON WASHINGTON—The White House will send a proposal to the House Tuesday to cut federal spending by $15 billion, roughly half of which would come from the Children’s Health Insurance Program, a senior administration official said Monday. Much of the so-called rescissions to be requested by President Donald Trump involve money that was authorized by Congress but not spent, the official said, arguing that those “unobligated balances” should go back to the Treasury. The plan is a shift from earlier discussions about rescinding funds that had been approved as part of a sweeping, $1.3 trillion spending bill enacted in March. This proposal would instead seek to rescind funds that had been authorized in previous fiscal years, but not spent. The official said Mr. Trump plans to propose rescinding Home Security. Done Right. Introducing the all new SimpliSafe. It’s smaller. Faster. Stronger than ever. Engineered with a single focus: to protect. More than easy to use: It’s downright delightful. All at prices that are fair and honest. Right now get free shipping t SimpliSfe.com/WS money from the March deal in a future proposal, the official said. Mr. Trump had threatened to veto the March spending measure but decided to sign it and avoid shutting down the government. The senior administration official said Monday the rescissions proposal headed for Capitol Hill Tuesday would be the first in a series of proposals to cut funding. The most controversial element of the proposal coming Tuesday is likely to be $7 bil- lion in proposed cuts to the Children’s Health Insurance Program, which enjoys strong, bipartisan support. The federal-state program provides health coverage to more than eight million low-income, uninsured children whose family incomes are too high to qualify for Medicaid. The White House proposal would rescind $7 billion from that program, of which $5 billion would come from funds where the authority to spend them has expired. An addi- CITI Lagging Behind Continued from Page One global equities trading, and held the bank’s first investor day in nearly a decade last July to signal Citi’s emergence from years of troubles after it was ravaged in the financial crisis. With the new Citi share purchases, ValueAct now has more than a third of its money in the financial sector, which it sees as undergoing a transformational shakeout and as less risky than at “any time in our investing lifetimes” following post-crisis regulatory moves, according to the letter. The bets, which include positions in Morgan Stanley and KKR & Co., come as federal banking regulations are set to ease under the Trump administration. That could give the nation’s biggest banks more room to make shareholder-friendly moves. That, in turn, could remove a key reason the industry’s leaders have mostly been left alone in the wave of corporate activism that has forced breakups, capital returns and other major shifts at companies across the U.S. ValueAct’s letter to its investors says Citi’s advantage is the “old-fashioned treasury management for global businesses” that has made it an important “plumbing” cog in the global financial machinery, positioning it well in businesses such as foreign-exchange and debt underwriting for multinational clients. ValueAct says that makes tional $2 billion would come from a contingency fund that isn’t projected to be tapped by states, the senior administration official said. The White House said it believed the cuts wouldn’t affect the insurance program’s operations, but Democrats didn’t agree. Democrats said that the contingency funds were necessary in case CHIP enrollment were to surge unexpectedly and the program, whose funding isn’t open ended, suddenly Share-price performance of Citigroup and its peers over the past ﬁve years 150% Bank of America JPMorgan Chase 100 50 Citigroup Wells Fargo 0 –50 2013 ’14 ’15 ’16 Source: WSJ Market Data Group Citi indispensable to clients and creates stable profits—unlike investment-banking services such as merger advisory in which Citi has sometimes trailed rivals. Such businesses are comparatively inexpensive to run and ValueAct isn’t pressing for retrenchment. “We believe that in this era of banks, the winners and losers will be decided by strategic focus, customer centric innovation, and capital allocation, as opposed to product breadth, appetite for risk and investment in trading talent that defined competition in the precrisis era,” ValueAct wrote to its investors. Citi, the fourth-biggest U.S. bank by assets, has been lagging behind its peers in recent years with a subpar return on equity and stock ’17 ’18 THE WALL STREET JOURNAL. performance. Citi shares have gained about 50%, including dividends, in the past five years, compared with an 87% gain in the KBW Nasdaq Bank Index, and more than 150% at JPMorgan Chase & Co. and Bank of America Corp. The bank’s return on equity was 9.7% in the first quarter, up from 7.4% a year earlier but behind the average for rivals of 13%. ValueAct says much of the path to closing the gaps in return on equity and stock performance is already paved by the roughly $40 billion in capital returns the bank has planned for the next two years. Citi should be able to generate at least $10 of earnings per share by 2020, double the 2017 figure, ValueAct says in its letter. The firm bought its posi- needed more money. “President Trump and Republicans in Congress are looking to tear apart the bipartisan Children’s Health Insurance Program, hurting middle-class families and lowincome children, to appease the most-conservative special interests and feel better about blowing up the deficit to give the wealthiest few and biggest corporations huge tax breaks,” Senate Minority Leader Chuck Schumer (D., N.Y.) said in a statement. tion at around book value per share, which was $71.67 in the first quarter. The stock closed Monday at $68.50, up slightly. Citi’s shares rose 1.8% to $69.71 in late trading after the Journal reported ValueAct’s investment. Unlike activist investors such as Carl Icahn who agitate for change, ValueAct considers itself a friendly counselor to management. It has shepherded technology companies including Microsoft Corp. and Adobe Systems Inc. through transformational times. ValueAct believes the financial industry is at a crossroads similar to the shift the technology industry underwent as the focus moved from personal computers to cloud computing. In 2013, Microsoft agreed to give ValueAct a board seat, which surprised many since the activist held only a 1% position. ValueAct Chief Investment Officer Mason Morfit joined Microsoft’s board the next year. The software company’s chief executive, Satya Nadella, has said he has come to rely on Mr. Morfit’s opinion, often approaching him before pitching the board on strategic moves. In 2016, ValueAct made a $1 billion bet on Morgan Stanley, supporting Chief Executive James Gorman’s drive to bulk up the Wall Street firm’s brokerage business and dial back its weaker units. The stock shot up and ValueAct sold some shares, but it remains a large investor. —Telis Demos contributed to this article. . THE WALL STREET JOURNAL. Tuesday, May 8, 2018 | A5 U.S. NEWS Trump Attacks Senate Hopeful President Puts His Stamp on GOP Republicans hold Senate primaries Tuesday in three states that President Trump won by wide margins in 2016, suggesting the GOP nominee has strong odds of winning in November. Most GOP candidates are embracing Mr. Trump. Testifying Decision Nears BY PETER NICHOLAS WASHINGTON—Lawyers advising President Donald Trump in the Russia investigation hope to decide whether he should testify by May 17, the one-year anniversary of the appointment of special counsel Robert Mueller, Trump attorney Rudy Giuliani said Monday. Mr. Trump’s legal team has long been divided on whether he should agree to a sit-down interview with Mr. Mueller, a decision that exposes him to legal perils but also could hasten the end of an investigation that has shadowed his presidency. In an interview, Mr. Giuliani said, “every day we swing a little different” on whether to advise Mr. Trump to talk to Mr. Mueller, though he suggested that recent developments in the probe have made him more leery. The president’s initial position was “what do I have to lose? I’m telling the truth,” Mr. Giuliani said. But Mr. Trump has also promised to weigh his lawyers’ advice. In a tweet Monday, Mr. Trump made clear his displeasure with the prosecutors running the Russia probe, describing them as “13 Angry Democrats.” He went on to suggest he might raise an issue with the courts about “unrevealed conflicts of interest” inside the Mueller team. Mr. Mueller, a registered Republican, has served under presidents of both parties, including 12 years as FBI director after being named to that post by then President George W. Bush, a Republican. His team includes many Democrats, some of whom contributed to Hillary Clinton in the 2016 election. Mr. Mueller is investigating whether the Trump campaign colluded with Russia during the 2016 presidential race. He is also examining whether Mr. Trump obstructed justice in firing James Comey as FBI director a year ago. Mr. Trump has denied any collusion or obstruction, while Russia has denied interfering in the election. The mix of lawyers could influence Mr. Trump’s ultimate decision, given their differing views on the merits of an interview. John Dowd, once the lead outside attorney who opposed an interview, resigned from the team. But Mr. Trump is also losing Ty Cobb, the lawyer handling the Russia probe inside the White House. Mr. Cobb has been more open to the prospect of an interview under certain conditions. The latest addition to the legal lineup is Washington lawyer Emmet Flood. In his initial discussions with Mr. Mueller’s team, Mr. Giuliani said, the prosecutors seemed “reasonable as to the ground rules.” Souring him, though, was a court hearing last week in which a federal judge questioned Mr. Mueller’s authority to bring tax and bank-fraud charges against Mr. Trump’s former campaign chairman, Paul Manafort. “They’re not really interested in Manafort, just in trapping the president,” Mr. Giuliani said. —Rebecca Ballhaus contributed to this article. Indiana Ohio W. Va. +19 +8 +42 pct. pts. BY SIOBHAN HUGHES IN PUBLIC EYE: Melania Trump unveiled her ‘Be Best’ children’s initiative, focused on ‘major issues facing children today,’ including social-media bullying and opioids, at the White House on Monday. The pro-Trump wing is more energized by the midterms... Trump’s 2016 election margin of victory President Donald Trump inserted himself into Tuesday’s Republican Senate primary in West Virginia, urging voters to reject a scandal-scarred former coal executive whose apparent polling strength is stirring fears that he could cost the party a chance to pick up a seat from Democrats. In a tweet Monday, Mr. Trump said the former executive, Don Blankenship, “can’t win the General Election in your State....No Way! Remember Alabama.” He then urged voters to choose one of two other Republicans in the race, U.S. Rep. Evan Jenkins or the state’s attorney general, Patrick Morrisey. The winner of Tuesday’s GOP primary will run in November against Sen. Joe Manchin, who is considered to be one of 2018’s most vulnerable Democrats. Mr. Trump’s comments suggested a last-ditch effort to salvage a primary race that Republicans in Washington thought had swung to either Mr. Jenkins or Mr. Morrisey. Last week, the two spent most of a prime-time Fox News debate attacking each other instead of seeking to undercut Mr. Blankenship, who served a year in prison on a charge of conspiring to violate mine-safety laws after 29 people died in a 2010 explosion at a coal mine operated by his Massey Energy Co. Mr. Blankenship, for his part, used the debate to cast himself as an antiestablishment outsider. As the weekend rolled around, many Republicans started to worry that polls that had once showed Mr. Blankenship in third place had begun to shift in the former coal executive’s direction. pct. pts. Share of high interest in the elections Trump Republicans pct. pts. Among Republicans, a majority say they support Trump more than they support the party. More a supporter More a supporter of the party of Trump 71% Party Republicans 47% ... and wants the president to set the agenda, rather than GOP leaders in Congress Who do you want to see take the lead in setting policy for the country? Congress GOP President Trump +55 pct. pts 40% +45 pct. pts 54% Sources: Atlas of U.S. Presidential Elections (results); WSJ/NBC News polls (Trump/GOP split) THE WALL STREET JOURNAL. TOM WILLIAMS/CQ ROLL CALL/NEWSCOM/ZUMA PRESS SAUL LOEB/AGENCE FRANCE-PRESSE/GETTY IMAGES First Lady Promotes Children’s Well-Being Don Blankenship is running in West Virginia’s GOP primary. “I think they are panicking,” said Jennifer Duffy, who follows Senate races for the nonpartisan Cook Political Report. “If Blankenship is the nominee, the race is off the table for Republicans. They can’t afford it.” In West Virginia, Mr. Blankenship was drawing energy from the attacks and fighting back. “My opponents are basically reacting to the fact that new polling shows that we’re well ahead,” Mr. Blankenship said in a local television interview, referring to polling conducted by his campaign that showed him with support of 37% of voters, compared with 20% for Mr. Morrisey and 15% for Mr. Jenkins. Mr. Blankenship also had a retort for those who said he couldn’t beat Mr. Manchin, drawing comparisons to December’s Alabama Senate race, in which a Democrat beat Trump-endorsed Republican Roy Moore. “We all really like President Trump’s policies, but we know that he doesn’t get things right,” he said. “He recommended that people vote for a guy that was basically accused of pedophilia in Alabama.” In the Alabama election, Mr. Trump backed Sen. Luther Strange in the primary, but Mr. Moore, who faced allegations of sexually assaulting teenage girls when he was in his 30s, won. Mr. Trump backed Mr. Moore, who denied the allegations, in the general election. Mr. Moore lost that race to Democrat Doug Jones. isn’t a substitute for a plan. How can you ensure the people you care about will be taken care of when you move on? W E A LT H P L A N N I N G | T R U ST A N D As a business owner, you have a lot of people relying on you. Do you have a plan in place for when you’re ready to transition your business? Is your vision for the business clear? Will your employees, customers, and family be well cared for? Wilmington Trust has been helping business owners like you build effective transition strategies for more than a century. The earlier you begin planning, the more flexibility you’ll have – and the better protected your business will be. For a deeper understanding of business transition planning, call Matt Panarese and his team at 302-651-1665. Download our research The Power of Planning at wilmingtontrust.com/businessowners. E STAT E S E RV I C E S | I N V E ST M E N T M A N AG E M E N T | P R I VAT E B A N K I N G* *Private Banking is the marketing name for an offering of M&T Bank deposit and loan products and services. Investments: • Are NOT FDIC-Insured • Have NO Bank Guarantee • May Lose Value Wilmington Trust is a registered service mark. Wilmington Trust Corporation is a wholly owned subsidiary of M&T Bank Corporation. Wilmington Trust Company, operating in Delaware only, Wilmington Trust, N.A., M&T Bank, and certain other affiliates provide various fiduciary and non-fiduciary services, including trustee, custodial, agency, investment management, and other services. International corporate and institutional services are offered through Wilmington Trust Corporation’s international affiliates. Wilmington Trust Investment Advisors, Inc., a subsidiary of M&T Bank, is an SEC-registered investment advisor providing investment management services to Wilmington Trust and M&T affiliates and clients. Loans, credit cards, retail and business deposits, and other business and personal banking services and products are offered by M&T Bank, member FDIC. ©2018 Wilmington Trust Corporation and its affiliates. All rights reserved. . THE WALL STREET JOURNAL. A6 | Tuesday, May 8, 2018 U.S. NEWS State Church Shooter Was Ticking Bomb Penn Fraternity BY JACOB GERSHMAN AND NANCY A. YOUSSEF Death Trial Broadens BY KRIS MAHER FROM TOP: RICK WILKING/REUTERS; TEXAS DEPARTMENT OF SAFETY/REUTERS Five years before Air Force veteran Devin Patrick Kelley burst into a small church in Sutherland Springs, Texas, last fall with a legally purchased semiautomatic rifle and gunned down 26 people, he recorded a tearful confession. “I am making this documentary, so everybody knows,” Kelley said in 2012, before describing how he pushed and struck his toddler stepson so hard, he fractured the child’s collarbone and caused bleeding on the brain. He violently lashed out when the boy spat out food, or when he grabbed things he wasn’t supposed to, or, once, after the boy vomited from a high fever. “With a child you can’t be forceful. You have to be gentle, loving, kind because they’re fragile,” Kelley said in front of the camera, and then quoted a Bible passage about the preciousness of children. But he couldn’t control his emotions, said Kelley, who four days before making the video was said to have pressed a handgun against the temple of his wife in a speeding car and asked her if she wanted to die. The shocking massacre six months ago at the small First Baptist Church raised questions about how a man with such a troubled past that was publicly known was able to buy deadly weapons. But the transcript of the confession, among military court-martial records newly released by the Justice Department, paint a fuller and even more frightening portrait of Kelley, showing an incompetent airman who tried to project an image of himself as a God-fearing, aspiring family man even as his ferocious temper and a compulsion toward brutality were apparent to the Air Force. In 2012, Kelley pleaded guilty at his court martial, received a bad-conduct discharge and spent a year behind bars. He was discharged in 2014. Air Force officials last Lorenzo Flores, left, and Terrie Smith mourning those killed in the shooting in Sutherland Springs, Texas, in November. Devin Patrick Kelley fall admitted that they had failed to notify the Federal Bureau of Investigation’s firearmscreening database about Kelley’s conviction for domestic violence. The criminal offense should have banned him from possessing weapons after he returned to civilian life, but the lapse allowed him to purchase a Ruger AR-556 rifle in 2016, which he used during his rampage last fall. Following the church massacre, the Air Force has been reviewing court-martial records back to 2002 in search of other domestic-abuse cases that weren’t properly reported to a federal background-check system, according to an Air Force spokeswoman. The Air Force said it has adopted new procedures to ensure the FBI receives information about convicted airmen, but it didn't offer specifics about those new measures and whether it believes they are working. The records show Kelley’s military superiors saw him as a ticking bomb. “I am convinced that he is dangerous and likely to harm someone if released,” wrote Maj. Nathan McLeod-Hughes in June 2012. Kelley’s commander had him put into a mental hospital in New Mexico, which Kelley escaped. Kelley was also convicted of beating his wife, Tessa, with whom he eloped in April 2011. In June 2011, weeks after Tessa, her baby boy and her 20-year-old husband moved into a residence at the Holloman Air Force Base, state child protective services placed the boy in foster care because of suspected abuse. For the next 10 months, Tessa testified that she feared for her life. She said her husband struck and kicked her at least 20 times. He would often pull her hair, she alleged, recalling that when she told him he might be bipolar while he was driving them to an airport, he grabbed her hair and lost control of the vehicle, striking a guard rail. “Devin would choke me a lot,” she said, describing an incident in June 2011 when Kelley shoved her against a bathroom door, “put his hands around my throat and choked me for approximately 15-20 seconds.” Her sister alerted Air Force authorities. Twice Kelley pointed a gun at her face, she said: once in April 2012 in a car after she urged him to slow down. Days earlier, she said, he loaded a .38 revolver with a bullet, pointed the gun at his head and pulled the trigger three times before training the weapon at her. The couple divorced in October 2012. At his court martial, Kelley told military officers that his violent behavior was a legacy of childhood bullying and that he had a religious awakening. The day he taped his confession, Kelley posted on Facebook about how he had a “last chance to redeem myself.” Prosecutors had asked for four years of confinement, citing about a half-dozen letters reprimanding Kelley. Said his defense counsel during sentencing: “This case can really be about healing.” A Pennsylvania judge said 11 additional members of a Penn State University fraternity will face trial over hazing and alcohol-related charges in the death of a sophomore last year. Judge Steven Lachman said Monday that the state attorney general’s office had presented enough evidence to warrant a total of 35 counts of hazing and more than 30 alcohol-related counts against the 11 defendants. He threw out all recklessendangerment charges against the Beta Theta Pi members. In May 2017, prosecutors originally charged the Penn State fraternity and 18 of its members in the February 2017 death of Timothy Piazza, a 19year-old pledge who suffered severe injuries after becoming intoxicated. Today, 14 of those students face similar hazing and alcohol-related counts, bringing the total number of students headed to trial to 25. Attorney General Josh Shapiro said he was pleased with the ruling. “The Office of Attorney General is committed to seeking justice for Timothy Piazza and his family,” he said. Mr. Piazza was a sophomore engineering student when he died during a ceremony at the Beta Theta Pi chapter at the university’s campus in State College, Pa., prosecutors have said. Penn State banned the fraternity last year. A spokesman for the fraternity couldn’t be reached to comment Monday. The fraternity previously said it doesn’t tolerate hazing or alcohol abuse by its members. Mr. Piazza fell several times, including down a flight of stairs, and surveillance video showed he suffered for hours but that no fraternity members summoned help, according to a grand-jury report. 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Investments are subject to investment risk, including market fluctuations, regulatory change, counterparty risk, possible delays in repayment and loss of income and principal invested. © Copyright Deutsche Bank 2018 . THE WALL STREET JOURNAL. Tuesday, May 8, 2018 | A7 * * * * WORLD NEWS Higher Oil Prices Give Putin a New Edge Russian president is handed an unexpected weapon to parry Western sanctions EU Appears Ready To Settle Case Against Gazprom BY THOMAS GROVE ANDREY RUDAKOV/BLOOMBERG NEWS MOSCOW—Russian President Vladimir Putin began his fourth term on Monday with an unexpected weapon in his arsenal against Western sanctions: higher oil prices. The price of oil is the highest it has been since 2014, pouring much-needed money into government coffers and giving Mr. Putin extra room to maneuver amid growing tensions with the West and protests at home. Mr. Putin’s foreign policy has put Russia on a confrontational course with the West over conflicts in Syria and Ukraine and allegations that Moscow meddled with the 2016 U.S. presidential election. But Mr. Putin believes Russia is for now over the worst effects of U.S. and EU sanctions and that higher oil prices will help buffer against any future penalties, analysts said. “He thinks that the Russian economy has stabilized and sees Russia now in a longterm battle of wills with the The European Union is poised to settle its long-running antitrust case against PAO Gazprom as soon as this month, according to people familiar with the discussions. A decision by the EU’s antitrust watchdog would conclude one of its most politically sensitive competition fights and would allow Gazprom to avoid billion-dollar fines in exchange for commitments aimed at breaking the Moscow-based company’s hold on the bloc’s natural-gas supply. —Natalia Drozdiak A worker tends machinery on a drilling rig in the Samotlor oil field near Nizhnevartovsk, Russia. West,” said Timothy Ash, senior strategist at BlueBay Asset Management in London. “Higher oil prices will help him play for more time against the West.” Russia has spent much of its foreign-currency reserves since 2014, when the price of oil tumbled some 40% and Washington slapped the first round of sanctions on Russia. At the time, the money was used to support the ruble and keep military spending at a post-Soviet high. But higher oil revenues could boost them again as a rainy-day fund to counter the effects of any new sanctions, Mr. Ash said. Despite scattered protests, the Russian leader is still broadly popular after two decades in power and has taken credit for pulling his country out of recession in part thanks to the recovering oil price. In a sign of his confidence, Mr. Putin strode into the gilded Kremlin Palace hall, taking the oath of office in an inauguration ceremony closely followed by state television and watched in person by thousands of people. He presided over a military march in the Kremlin courtyard following the ceremony. Speaking after the swearing-in, Mr. Putin said he would guarantee Russia’s security while boosting living standards with breakthroughs in technology, education and medical services. “We must keep pace with global changes, create our own agenda for development, so that no obstacles and circumstances interfere as we and only we determine our own future,” he told the audience of ministers, public figures and the country’s political elite. Despite oil’s higher prices, the country is unlikely ever to compete on an economic footing with Washington or Brussels. Mr. Putin has failed to deliver on a long-promised effort to diversify the economy, instead bolstered the importance of the oil and raising output during his tenure to 11 million barrels a day from less than 7 million barrels a day. The heyday of $100 a barrel oil allowed him to use the country’s energy bounty to rebuild the military against what he sees as Western threats. Since Mr. Putin announced Russia’s military modernization in late 2010, Russia has spent some 23 trillion rubles, or some $37 billion, according to the current exchange rate. Tehran Resists U.S. Demands, as Nuclear Deal Teeters By Asa Fitch in Dubai and Margherita Stancati in Riyadh, Saudi Arabia Trump weighs withdrawing from the nuclear deal, a scenario that threatens to escalate the country’s destabilizing rivalry with Saudi Arabia. In defiant speeches on Mon- IRAN Continued from Page One and an appearance on one of Mr. Trump’s favorite television programs, “Fox & Friends.” “We need to find a way of fixing that and the president has been right to call attention to it,” Mr. Johnson said on Fox. “But you can’t do that without just throwing the baby out with the bath water.” Mr. Johnson’s visit followed recent visits by French President Emmanuel Macron and German Chancellor Angela Merkel, who urged Mr. Trump not to withdraw. On Monday, a European diplomat said that the chances of keeping the accord intact are “very small” and that the Trump administration appeared to believe it would better to make a fresh start on nuclear issues. Trump administration officials declined to say what specific decision Mr. Trump had made. But the president has been fiercely critical of the accord and there have been no indications that his concerns have been assuaged. U.S. and European diplomats have worked hard in recent weeks to close the gaps on several issues, including Iran’s ballistic missile program and the scope of inspections. But they have been at odds over the Trump administration’s insistence that sanctions should automatically take effect eight years from now if Iran begins to expand its capability to enrich uranium by installing more advanced centrifuges, as it now is allowed to do under the agreement. Europeans don’t know what specific steps the U.S. will take if Mr. Trump decides to leave the agreement, including whether he will allow more time for diplomacy and how he hopes to constrain Iran’s nuclear activities if the agreement is jettisoned. Under one scenario, which diplomats have dubbed a “soft exit,” Mr. Trump would refuse to waive sanctions on May 12 on Iran’s oil export and transactions by its Central Bank. The U.S. Treasury Department website states that companies would have 180 days to wind down their deals before the sanctions take effect, which could give the U.S. and the Eu- day and over the weekend, President Hassan Rouhani offered the clearest glimpse yet of how his country plans to react if Mr. Trump withdraws from the nuclear pact by a selfimposed deadline on Saturday. Mr. Rouhani rejected a series of concessions demanded by the Saudis and the U.S., including limits on Iran’s ballistic missile program—which isn’t covered in the nuclear pact— and its interference across the Middle East. “If the U.S.’s goal is for our country to have no independence and influence in the region, our people will stand against them fiercely as they have done over the past 40 years,” Mr. Rouhani said in a speech broadcast on state TV. Mr. Trump said on Monday he would announce on Tuesday at 2:00 p.m. whether to reimpose restrictions on Iran. If he does, it would violate the nuclear deal—essentially pulling the U.S. out of it. Saudi Arabia and its young crown prince, Mohammed bin Salman, see ending the nuclear deal as a vital element of curbing Iran’s rising role in Syria, Yemen and other Middle Eastern trouble spots. Already emboldened by Mr. Trump’s hard line on Tehran, Saudi Arabia has moved to dilute Iran’s sway in Iraq and Lebanon. The kingdom now says it is contemplating contributing troops to stabilize Syria—a place the Saudis had once considered a lost cause. Senior Saudi officials have said privately they are contem- plating how to sell more crude oil should the Trump administration reimpose crippling sanctions on anyone who buys Iranian petroleum. Saudi Arabia and Iran are on opposite sides of conflicts in the Middle East. Saudi Arabia accuses Iran of arming Yemen’s Houthi rebels, who deposed a Saudi-backed government and fire missiles toward the kingdom. Iran denies helping the Houthis. But Iran has openly helped Syrian President Bashar al-Assad weather a seven-year civil war, in which Saudibacked rebels are trying to overthrow the government. Few believe Saudi Arabia and Iran are headed for an outright war, but the rivals are likely to confront each other in other, less-direct ways if the deal is scrapped, Middle East analysts say. “It would just reinforce the escalatory path they have already been on,” said Hani Sabra, the New York-based founder of Alef Advisory, a political risk firm. IRANIAN PRESIDENCY/AGENCE FRANCE-PRESSE/GETTY IMAGES Iran’s president said his country would fiercely resist efforts to contain its regional influence as President Donald Iran’s President Hassan Rouhani, in a photo provided by the government, warned the U.S. not to withdraw from the nuclear deal. ropeans months more to try to settle their differences over the accord. But Mr. Trump could go further by deciding on a “hard exit.” That would entail stating now that he won’t waive sanctions either now or in the future, effectively removing the U.S. from the agreement and forcing firms doing business in Iran with hard decisions. Whatever approach Mr. Trump adopts may also pertain to another set of sanctions that come up for a U.S. decision in July, including secondary sanctions on foreign financial institutions engaging in significant transactions with Iranian entities. Within the Trump administration, the criticism of the ac- U.S. military officials have said the deal has constrained Iran’s nuclear program. cord has been echoed by John Bolton, Mr. Trump’s new national security adviser. Mr. Pompeo has also been critical even as the State Department has led an effort to try to shore up the accord by negotiating a supplementary understanding with European allies. Mr. Trump criticized former Secretary of State John Kerry on Monday for meeting with foreign officials to discuss ways to save the nuclear deal with Iran. Mr. Pompeo recently told Congress that Tehran appears to be complying with the Iran agreement. American military officials have acknowledged that the ac- cord has constrained Iran’s nuclear program at a time when the U.S. already has its hands full dealing with Iran’s more assertive posture in the region. The dispute with Europe over the Iran deal is exacerbating building tensions among the trans-Atlantic allies over a host of other policy matters. The Trump administration’s steeltariff threats, U.S. sanctions against a critical Russian aluminum supplier to the continent and the European Union’s proposal for a digital tax that could hit U.S. internet giants all have added to an increasingly strained relationship. The Iran sanctions represent a potential threat to many European companies that have deep business ties to Iran in the energy and industrial sectors. U.S. companies, such as Boeing Co., have said they would abide by U.S. laws. But new sanctions against Iran could jeopardize their multibillion-dollar projects begun since the deal was reached. Pulling out of the deal “will leave many unanswered questions about what sanctions look like and the timeline,” said Elizabeth Rosenberg, a former senior adviser at the Treasury Department who was involved in the Obama administration’s rollout of sanctions against Iran. It takes months to craft the guidance necessary to explain to companies, banks, foreign financial regulators and central bank governors exactly what the Trump administration’s new sanctions will mean in practice, said Ms. Rosenberg, now a senior fellow at the Center for a New American Security. —Jessica Donati, Nancy A. Youssef and Laurence Norman contributed to this article. Jacob Sanchez Diagnosed with autism Lack of speech is a sign of autism. Learn the others at autismspeaks.org/signs. . THE WALL STREET JOURNAL. A8 | Tuesday, May 8, 2018 WORLD NEWS Malaysian Opposition Goes High-Tech TANGKAK, Malaysia—Many political operatives prefer to work in the shadows, away from public scrutiny and the prying eyes of their opponents. Not Rafizi Ramli. The opposition strategist is hitting the campaign trail as hard as any candidate ahead of Wednesday’s elections to drum up donations for his crowdfunded data outfit, Invoke, hoping to guide Malaysia’s ragtag opposition alliance to victory after more than 60 years of one-party rule. With a staff of nearly 100 people and advice from the deputy data-analytics chief of Barack Obama’s 2012 campaign, Andrew Claster, Invoke shows how polling and internet data that have transformed campaigns in established democracies like the U.S. are now influencing elections around the world. In addition to knocking on Malaysian voters’ doors and huddling in village town halls, Invoke runs online petitions and employs dozens of people to call voters in marginal electoral districts to get their views on everything from the economy to the financial scandals dogging Prime Minister Najib Razak and the state investment fund he founded. It uses that information to finetune its clients’ campaigns, tailoring targeted advertisements on Facebook and setting up groups on WhatsApp. Invoke takes a conspicuously grass-roots approach, with its website inviting supporters to donate as little as $2.50. Mr. Rafizi says the company relies on many small donations rather than fewer big ones, citing that as the Battle for the Hinterland Malaysia's vote will hinge on whether the opposition can break the National Front's hold on the countryside. By party of current seat holder CHINA S ou th Chin a S ea Kuala Lumpur National Front Alliance of Hope Others* Vacant 100 miles 100 km Area of detail M A L AY S I A Kuala Lumpur INDONESIA Kuala Lumpur By ethnicity Malay Chinese Mixed Indigenous *Pan-Malaysian Islamic Party and others Source: Tindak Malaysia THE WALL STREET JOURNAL. IAN TEH FOR THE WALL STREET JOURNAL BY JAMES HOOKWAY Rafizi Ramli at Invoke’s office in Kuala Lumpur earlier this month. reason Invoke makes a point of going out into the field and putting its message across. Mr. Rafizi, a trained accountant, has a lot riding on the outcome of this week’s election. Elected to parliament in 2013, he is barred from re-election after he was convicted of revealing secret financial documents in 2016 and again this year. He also faces up to four years in prison if he fails to win an appeal or get a new government to secure him a royal pardon. “That left me thinking what I could do, and then it came to me: Let’s set up our own data operation and win this election,” Mr. Rafizi said. On a recent Wednesday, Mr. Rafizi rolled in to Tangkak, a dusty market town south of the capital, Kuala Lumpur, and launched into an hourlong harangue about Mr. Najib’s leadership. “Let’s rebuild the nation!” the 40-year-old yelled as supporters cheered his fourth speech of the day. The election will be difficult for the opposition to win, political analysts say. The ruling coalition led by the ethnic-Malay establishment United Malays National Organization has run the country since independence in 1957. Pitted against it is a broad, multiracial opposition alliance headed by Mahathir Mohamad, a 92-year-old former UMNO premier. Mr. Najib has pledged cash handouts to nearly half of the population, and electoral boundaries were recently redrawn in a way that provides a strong weighting to rural areas that traditionally vote for UMNO. While the opposition has gained ground, Ibrahim Suffian of Kuala Lumpur-based polling company Merdeka Center said Mr. Najib retains enough support among the majority Malay population to form a new government. Some of UMNO’s data experts scoff at Mr. Rafizi’s attempts to swing voters. One of them, Khairul Azwan Harun, called on regulators last month to shut down Invoke, saying it was misusing personal data by illegally obtaining telephone numbers. Mr. Rafizi denies any wrongdoing and the regulators haven’t taken any action against his company. The focus of Mr. Rafizi’s effort is to identify and target voters who might be convinced to swing to opposition candidates such as Syed Ibrahim Syed Noh in Tangkak. “Invoke has given us a fighting chance,” Mr. Syed said. “The data helps to find the people who can swing our way, so we focus all our attention on them.” Invoke has identified 45 of the 132 government seats in parliament that it thinks could flip to the opposition. Like Tangkak, once a major textiles hub, those districts are often dominated by voters who are being squeezed by rising living costs and an unpopular sales tax, said Wong Chen, an opposition lawmaker. Gaining less traction are issues such as the opposition’s claims that Mr. Najib siphoned off hundreds of millions of dollars from state investment fund 1Malaysia Development Bhd., or 1MDB. Several international probes are under way, including one in the U.S. Mr. Najib and the investment fund deny any wrongdoing. Karl Marx Becomes a Rallying Point in China BEIJING—Decades into China’s capitalism-fueled economic miracle, President Xi Jinping is promoting Karl Marx as a rallying symbol for the nation. To mark the 200th anniversary of Marx’s birth this month, Mr. Xi launched a highprofile campaign celebrating the German philosopher. Communist Party newspapers hailed “Das Kapital,” Marx’s critique of capitalism, as “holy scripture.” Comics portrayed his life’s lighter moments—like when he was detained for rowdy drinking. State television aired a prime-time documentary and a talk show to celebrate the “greatest thinker of modern times.” For Mr. Xi, the campaign is a way to demand loyalty within the ruling party and persuade Chinese to keep faith with a Communist government that he says has employed Marx’s ideas to make China prosperous and powerful. While Marxism remains an official ideology, many Chinese now see their country as socialist only in name—home to hundreds of billionaires and some of the world’s biggest startups, and saddled with a widening wealth gap between urban elites and the rural poor. The propaganda is heavy on symbolism but thin on theory. Spurning discussions of capi- NG HAN GUAN/ASSOCIATED PRESS BY CHUN HAN WONG A guard in Beijing’s Great Hall of the People awaits the start of an event on Friday celebrating the bicentennial of Karl Marx’s birth. talist exploitation and class struggle, Mr. Xi and party officials portray Marxist ideas as tools for standing up to Western imperialist bullying and restoring China’s greatness. Their appeals carry an air of spiritual fervor. Marx “lived honestly and simply, and valued affection and comradeship,” Mr. Xi said Friday in a speech at Beijing’s Great Hall of the People. He offered his own interpretations of Marxist theory and ordered party members to master them by reading Marxist classics as a “way of life” and “spiritual pursuit.” Propaganda campaigns in China have often focused on promoting Chinese leaders— especially Mao Zedong—and portraying their policies as Marxism interpreted for the Chinese context. In invoking Marx, Mr. Xi is claiming the authority to replace his predecessors’ policies with his own, some analysts said. “The posthumous cult of Marx these days serves to legitimize the present leadership and whatever it claims Marxism to be,” said Daniel Leese, a China historian at Germany’s University of Freiburg. “And only Xi Jinping is said to be capable of synthesizing classical doctrine with present realities.” At a party congress in October, Mr. Xi declared a “new era” in Chinese socialism, a move seen as his bid to reshape the development model laid down by reformist leader Deng Xiaoping four decades ago. American Remanded In Turkish Custody BY DAVID GAUTHIER-VILLARS YENI SAKRAN, Turkey—The American pastor Turkey accuses of colluding with terrorist groups was remanded in custody after a prolonged second day in court in a trial that is increasing strains between Washington and Ankara. Ending a 10-hour hearing in Yeni Sakran, a coastal town in western Turkey, the presiding judge on Monday ordered Andrew Brunson to remain behind bars and adjourned the case to July 18. Mr. Brunson has denied the charges against him. The fate of Mr. Brunson, who faces a possible 35 years in prison, has drawn angry reactions from U.S. officials. “People are so upset that you can snatch up someone and you have no recourse,” Sandra Jolley, vice chair of the U.S. government Commission on International Religious Freedom, told reporters outside the court. Members of the U.S. Congress, who describe Mr. Brunson’s detention by a North Atlantic Treaty Organization Presbyterian pastor Andrew Brunson, an American, has lived in Turkey for more than 20 years. ally as a hostage-taking, have proposed to retaliate with sanctions. Mr. Brunson’s case is one of several flashpoints—from strategic divergence in Syria to Turkey’s planned purchase of a missile-defense system from Russia—that have driven relations between the two allies to a historical low. The U.S. blames Turkish President Recep Tayyip Erdogan, who will seek a new mandate in elections on June 24, for assuming an increasingly authoritarian stance. Mr. Erdogan is upset by the lack of U.S. action on his repeated demands to deport a Turkish cleric he accuses of fomenting a failed military coup in Turkey in the summer of 2016. The cleric, Fethullah Gulen, denies the accusation. Highlighting the importance of the Brunson case in Washington’s eyes, the U.S. chargé d’affaires in Turkey, Philip Kosnett, was among those present at the back of the courtroom. Turkish prosecutors allege the 50-year-old pastor from North Carolina colluded with followers of Mr. Gulen and with Kurdish militants Turkey regards as terrorists. Mr. Brunson has lived in Turkey for more than two decades and led a small Presbyterian church in Izmir when he was detained in October 2016. As they did in a hearing last month, prosecutors on Monday cited anonymous witnesses who, instead of taking the stand, appeared on two large screens via video link, with their faces blurred and their voices altered. WORLD WATCH INDONESIA ABIR SULTAN/EPA/SHUTTERSTOCK China Opens Door To More Palm Oil INDICATOR: A new sign appeared at the road leading to the U.S. Consulate in the Jewish Arnona neighborhood in Jerusalem as the U.S. prepares to move its embassy to the Holy City from Tel Aviv. Chinese Premier Li Keqiang signaled that Beijing will increase imports of Indonesian palm oil, expanding a key market for Jakarta as environmental concerns prompt opposition to the product elsewhere. After meeting with Indonesian President Joko Widodo during a two-day visit to the country, Mr. Li said China would consider raising this year’s import quota for Indonesian palm oil by at least 500,000 tons, in what would be the second consecutive annual increase. China, the largest buyer of Indonesian palm oil behind India and the European Union, imported 3.7 million tons of the product last year. Indonesian Foreign Minister Retno Marsudi said China needed more palm oil partly because it is developing a biofuel blend of 5% palm oil and diesel. Indonesia and neighboring Malaysia are currently in a trade disagreement with the EU, which is seeking to ban the import of palm oil used for biofuel by 2021, largely because of concerns that the development of plantations is contributing to global deforestation. Indonesia and Malaysia account for more than 85% of global palm-oil supply and have criticized the EU ban as designed to protect markets for European farmers. —Anita Rachman MEXICO Peso Weakens Against the Dollar The Mexican peso weakened against the U.S. dollar, reaching levels not seen since the start of the year as jitters about a potential leftist victory in July’s presidential elections begin to weigh on the currency. The peso fell 20 centavos to 19.47 to the dollar, off nearly 8% from mid-April when the dollar fetched as few as 17.95 pesos. —Anthony Harrup CYPRUS U.N. Lifts Hopes for Reunification Talks Foreign Minister Nikos Christodoulides encouraged a United Nations initiative to assess the prospects of restarting talks to reunify the ethnically divided island. He hailed U.N. chief António Guterres’s decision to task an official with deciding whether conditions are ripe for another round of peace talks. Mustafa Akinci, the leader of the breakaway Turkish Cypriots, has also welcomed the move. Many rounds of negotiations over more than four decades have gone nowhere. The mostrecent talks collapsed in July. —Associated Press . THE WALL STREET JOURNAL. Tuesday, May 8, 2018 | A9 WORLD NEWS The election is seen as a referendum on the competing influences of Tehran and Riyadh BY SUNE ENGEL RASMUSSEN AND NAZIH OSSEIRAN BEIRUT—Hezbollah and its allies won a majority of seats in Lebanon’s first parliamentary election in nearly a decade, the Shiite militia and political group said, boosting its influence and giving its patron Iran greater sway in the country. Prime Minister Saad Hariri’s Future Movement party, backed by Saudi Arabia and Western countries, acknowledged it had lost ground. Mr. Hariri said his Future Movement had secured only 21 seats in the legislature, down from 36 in 2009. Despite the setback, Mr. Hariri is still expected to have the largest bloc of Sunni Muslim seats, making him a frontrunner to again lead the government in Lebanon’s complicated political system. As of late Monday, the Interior Ministry hadn’t released official results from Sunday’s voting, but political parties, which are permitted to observe and mirror the counting, provided unofficial results. Hezbollah said Monday evening it had won 13 seats, unchanged from the number it won in the previous election in 2009. Along with its partners, however, Hezbollah’s coalition now is expected to hold 71 of the 128 seats in parliament, up from the 57 it won in 2009. Lebanon’s political system has strict sect-based powersharing rules under which the prime minister must be a Sunni, the president a Maro- nite Christian, and the speaker of parliament a Shiite. Mr. Hariri and Hezbollah have coexisted in the government since 2016, when they formed an uneasy coalition to break a long political deadlock, with the blessing of Tehran and Riyadh. The National Democratic Institute, an unofficial election observer, said that “although inconsistencies were reported, voting was generally peaceful, orderly and well-organized.” Supporters of Hezbollah and Mr. Hariri’s Future Movement, however, clashed in several locations in the capital on Sunday. After the polls closed, Hezbollah supporters draped the group’s flag over a statue of Saad Hariri’s assassinated father, Rafik, himself a prime minister. Hezbollah is the main suspect in the 2005 assassination. The election is seen as a referendum on the competing influences of Tehran and Riyadh in Lebanon, taking place in the shadow of the sevenyear war in neighboring Syria, in which Hezbollah has worked under Iranian direction to prop up the regime of President Bashar al-Assad. Despite facing rare opposition due to a lackluster economy in areas under its control, and its involvement in Syria, Hezbollah is still a dominant electoral force in its heartland. With little expectation of a change in policies, many Lebanese stayed home on election day. A low turnout of 49% signaled voter discontent with the established parties, which are largely rooted in family dynasties and sectarian patronage. The low participation allowed for outsiders to emerge, with at least one female inde- FROM TOP: AZIZ TAHER/REUTERS; NABIL MOUNZER/EPA/SHUTTERSTOCK Hezbollah, Allies See Strong Gains In Lebanon Vote Hezbollah backers celebrate their gains. Below, Saad Hariri after voting Sunday. The prime minister acknowledged his party’s losses. pendent candidate, TV presenter Paula Yacoubian, winning in Beirut, according to her election list, All for the Nation. Branding itself as a resistance movement, Hezbollah derives popular support from its armed opposition to Israel and to groups like Islamic State, and from its patronage of Shiite groups in the east and south of the country. While Hezbollah’s gains were short of the two-third majority that would allow for a change in the constitution, the group looked poised to continue exercising its outsize role in Lebanese politics. Yet, Hezbollah’s powers are limited. Western countries would withhold military and development aid, which is vital for the Lebanese state, if Hezbollah were to gain control of the funds. In a televised speech Monday, Hezbollah leader Hassan Nasrallah said the expected parliamentary majority would serve as protection against demands by the U.S. and Mr. Hariri that the group disarm and surrender its military arsenal. Iran’s deepening influence in Lebanon through Hezbollah has frustrated Saudi Arabia, to such an extent that it forced Mr. Hariri to temporarily resign during a trip to Riyadh in November. Israel, too, has watched the growth of Hezbollah’s influence with concern. On Monday, Education Minister Naftali Bennett criticized Lebanese voters for enhancing the power of an enemy of Israel. “The State of Israel will not differentiate between the sovereign State of Lebanon and Hezbollah, and will view Lebanon as responsible for any action from within its territory,” Mr. Bennett said on Twitter. Speaking at a press conference on Monday, Mr. Hariri rebuffed Mr. Bennett, saying: “Lebanon is the Lebanese government,” adding, “I am proud of Beirut.” Egyptian Ride-Hailing Bill Spurs Surveillance Concerns BY JARED MALSIN A signature sterling silver bracelet We love it for its time-honored artistry and finely woven craftsmanship. You’ll love it as your signature piece, one that truly reflects your refined and confident AMR DALSH/REUTERS CAIRO—Egypt’s Parliament passed legislation requiring ride-hailing apps such as Uber to hand over passenger data when requested by the country’s security agencies, raising concerns about consumer privacy and state surveillance. Rights advocates quickly criticized the bill on Monday. “Forcing companies to share private information about customers with notorious security agencies, far removed from any judicial oversight, is basically systematic unlawful spying on citizens,” said Amr Magdi, a researcher on Egypt with Human Rights Watch. Katitza Rodriguez, international rights director at the Electronic Frontier Foundation, an online-rights group in San Francisco, said the bill “as currently written has the potential to strip away locational privacy from individuals by granting access under a very weak standard.” For its part, Uber, which says more than four million people in Egypt have used its app since it made its debut there in late 2014, praised the legislation, saying in a statement that Egypt was “one of the first countries in the Middle East to pass progressive regulations.” The bill that passed Monday is less far-reaching than a prior draft that called for the style. We applaud that style—and your keen ability to recognize a truly terrific deal. Fans took an Uber bus to 2016 soccer game in Alexandria, Egypt. ride-hailing apps to provide data in real time. Lawmakers also dropped a demand for the companies to house their servers in Egypt. In response to questions about how the bill would affect riders’ privacy, an Uber executive who declined to be identified said the firm would raise concerns with the government “if the current law is amended in the coming months to reintroduce the previous worrisome data provisions.” The ride-hailing legislation would establish a system of fees and other regulations for Uber and its Dubai-based local competitor, Careem. Transportation Minister Hesham Arafat said the legislation allowed government to reap new rewards from the ride-sharing industry’s opera- tions in Egypt. “The law legalizes a situation from which the state has not yet benefited, even though it [ride hailing] began three years ago,” according to the state newspaper Al Ahram. To become law, the bill must be approved by President Abdel Fattah Al Sisi. The bill would clear up a period of legal uncertainty for Uber and Careem. A Cairo court ruled in March that it is illegal to use private cars as taxis, before another court overturned that ruling. Careem said the passage of the law “sends out a strong signal that Egypt continues to be open for business.” —Amira El Fekki contributed to this article. Uber and Grab press Southeast Asia consolidation................... B4 $ 49 Plus Free Shipping Italy President Warns of Elections BY GIOVANNI LEGORANO ROME—Italy edged closer to fresh national elections as the Italian president launched a last-ditch call for parties to support a short-term government in an attempt to break a two-month political deadlock. President Sergio Mattarella concluded the fifth unsuccessful round of formal talks among parties Monday, his latest effort to cajole the groups into bridging differences and forming a new government. The talks come more than two months after elections yielded a hung Parliament. After the failed talks, Mr. Mattarella urged party leaders to support a broad-based government that would have cross-party support—a proposition the two large antiestablishment parties have already rejected. Otherwise, the president warned, Italians could go back to the polls as soon as this summer. Italy has been stuck in a political impasse since the March 4 elections produced a Parliament divided roughly into three blocs. Mr. Mattarella has tried various combinations among the parties in an effort to find a coalition that could secure a parliamentary majority. He has failed to do so, leaving a shrinking chance that Italy will avoid a snap vote. Sterling Silver Byzantine Bracelet 7" length. 1⁄4" wide. Lobster clasp. Shown slightly larger for detail. Also available in 14kt gold. Item #872977 $499 Ross-Simons Item #686854 To receive this special offer, use offer code: EMPIRE366 1.800.556.7376 or visit www.ross-simons.com/EMPIRE . A10 | Tuesday, May 8, 2018 THE WALL STREET JOURNAL. * *** IN DEPTH Only if accredited Among individual investors, sales of private placements are typically restricted to those who are “accredited,” meaning they have annual incomes of over $200,000 or have more than $1 million of assets besides their homes. It’s up to brokers to make sure clients meet this test. Many seniors were among the thousands facing losses from the troubled investment linked to private placements that was advertised by Mr. Kay and other sales agents, according to the SEC. Mr. Kay said he didn’t know whether he was still barred from the securities industry—he is, according to public records—and he also said the investment he advertised wasn’t a “security,” something he wasn’t licensed to sell. Though advertising it, he said, he didn’t end up selling any. One investor’s lawyer said Mr. Kay sold the investor a $500,000 investment late last year. Mr. Kay’s lawyer declined to comment on that. Mr. Kay wasn’t aware of the alleged Ponzi fraud when he advertised the investment, said his attorney. The investment involved Woodbridge Group of Companies LLC, a California-based firm raising money, much of which it said it would use for loans to a variety of commercial real-estate ventures. Instead, the SEC alleged in a lawsuit, Woodbridge lent mostly to businesses owned by its owner, Robert H. Shapiro. Those businesses purchased real estate, including luxury Southern California property such as the lavish Owlwood estate, once owned by pop duo COURT Continued from Page One a high court. It is a panel called the Arbitration Committee, largely unknown to anyone but Wiki aficionados, which hears disputes that arise after all other means of conflict resolution have failed. The 15 elected jurists on the English-language Wikipedia’s Arbitration Committee—among them a former staffer for presidential candidate John Kerry, an information-technology consultant in a tiny British village and a retired college librarian—have clerks, write binding decisions and hear appeals. Founded in 2001, Wikipedia operates largely through community consensus. All editors are volunteers, and anyone can write and edit its millions of articles. In online forums, editors debate content, sources and style, and typically manage to broker peace by talking—or Los Angeles’s Owlwood estate is owned by Woodbridge Group; brokers sold investments in Woodbridge that the SEC challenged. Sonny & Cher. The investments didn’t produce enough revenue to pay investors the returns they were promised. The result was a “business model built on lies” that was kept afloat, Ponzi-like, only by the constant infusion of new money from investors, the SEC said when it sued Woodbridge and Mr. Shapiro for fraud in federal court in Miami. The lawsuit labeled the business a “massive Ponzi scheme.” The suit also said Mr. Shapiro spent at least $21.2 million of Woodbridge’s money on himself, leaving investors “with substantial losses, as they are owed at least $961 million in principal.” Woodbridge filed for chapter 11 bankruptcy protection in December 2017, shortly before tions,” said his lawyer, Ryan O’Quinn. Archie Beckett Jr., a 63year-old former petroleum engineer in Katy, Texas, retired last summer expecting steady income from $3.6 million he put into Woodbridge. Now, he and his wife will “have to change our whole plan of what we were going to do,” including providing college funds for four grandchildren. Another investor was George Stephanopoulos, the ABC newsman. “Like many others, I was a victim of Woodbridge and now must deal with the consequences of its bankruptcy,” he said. Brokers who sell private placements are more likely to have black marks, including customer disputes, investigations and other regulatory actions, on their disciplinary records. Serial offenders George L. Sims Jr. of Parker, Colo., heard Mr. Goodman talking “about the safety and security of the Woodbridge investment,” Mr. Sims told the SEC. He said when he called ino ask about the deal, he was referred to Ms. Robbins. Mr. Goodman declined to say how much, if anything, he was paid for referrals. Knowles said in its bankruptcy filing it paid “influencers” 1% of newly invested money when they provided leads to clients who invested in Woodbridge. Mr. Goodman, who doesn’t face any regulatory action, said he merely referred investors to Knowles and didn’t sell anything. “I’m very sorry at the way this has turned out,” he said. “From what I under- Years ago, Congress tried to root serial offenders out of private-placement brokerage by barring felons and people with certain securities offenses. But rules adopted to implement this action in 2013 didn’t target many advisers who had past infractions. “It almost grandfathered in recidivists,” said Joe Rotunda, the Texas securities regulator’s enforcement chief. To help investors cope with selling agents who aren’t registered as brokers or investment advisers, the SEC this month launched a public database that includes unregistered individuals who had recent SEC actions against them. State regulators took action on Woodbridge as early as 2015, when Massachusetts and Texas sent cease-and-desist letters or imposed fines. The SEC didn’t begin an investigation until September 2016, and it wasn’t until December 2017 that the SEC sued the firm and froze its assets. A spokesman for the SEC said its investigation was made harder by “protracted efforts” of Woodbridge and certain employees to interfere. “Despite these roadblocks, the staff moved quickly to put a stop to the alleged fraud,” the agency said. SEC investigators last year interviewed one sales agent who was barred from the securities industry but continued marketing the Woodbridge investments, without being stopped by the agency, until the bankruptcy, according to court filings and lawyers representing investors. Mr. Kay, the Beverly Hills former broker who advertised the Woodbridge investment, published a book online in 2014. “Anecdotes for a Better Retirement” listed what it called the 10 biggest retirement planning mistakes. Top of the list: “selecting the wrong advisor.” —Jim Oberman, Tom McGinty and Peg Brickley contributed to this article. “infoboxes,” committee members reviewed lots of evidence. At stake was how to handle misconduct during discussions of the boxes, which have consistently triggered bad behavior from editors. Some view the boxes as necessary, while others see them as reductive and ugly. “This is something that’s been boiling over for years,” says jurist BU Rob13. “I don’t understand why passions run so high here.” Two members drafted a decision. Language was parsed. Details were dissected. Proper punishment was weighed. In late March, the panel issued its final ruling, which authorized sanctions that allow administrators to ban certain editors from contributing to or deleting infoboxes. It is a process that has been repeated about 500 times since the panel’s founding, according to Wikipedia. In one decision, the panel banned computers affiliated with the Church of Scientology from editing its Wiki- pedia entry. In another, the panel laid out guidelines defining “pseudoscience.” The court hands down sentences, ranging from editing bans on particular users—“if you can’t edit, it’s like death,” says one banned editor—to restrictions on contentious pages. Among the topics where ArbCom has authorized editing restrictions: abortion, acupuncture, U.S. politics, genetically modified organisms, the tea party and Waldorf education. “It’s very dictatorial,” says Edwin Black, an author who has written critically about technology, including Wikipedia. “You don’t get to face your accusers because you don’t know the person behind the pseudonym. You might be talking to someone named Bizarro24 or Swampboy.” Mr. Matetsky, the informal chief justice, defended his court. “It’s like Winston Churchill said about democracy, ‘Democracy is the worst form of government, except for all the others.’ ” Share of brokers disclosing complaints or other reportable issues Number of disclosures per broker One Two 0% of brokers Three 10 Four or more 20 30 40 Brokers who sold private placements ‘Call now!’ the SEC filed suit. Unsecured creditors estimated in a court filing that investors could recover 45% to 76% of what they are owed, depending partly on how much Woodbridge could realize by selling a property portfolio worth several hundred million dollars. On April 23, Woodbridge agreed to settle the SEC civil suit without admitting or denying its allegations. Adam Schwartz, a lawyer for the firm, said it is cooperating with the SEC and state regulators. Mr. Shapiro didn’t settle and is fighting the SEC suit. He “continues to vigorously deny the mischaracterization of…Woodbridge as a Ponzi and he looks forward to defending those baseless allega- Sales agents began marketing Woodbridge investments six years ago, the SEC said. Investors could buy notes maturing in 12 months or more, secured by property liens, or buy units in funds owned by Woodbridge. Ads appeared in newspapers and on the radio. “CALL NOW to receive 8% for 1 year on what people are calling the greatest short term, safe investment available today!” said an ad from a firm called Position Benefits LLC in Plymouth, Mass. Founder Charles Nilosek said he simply used Woodbridge’s marketing materials in his ads. “We would do the same thing for a pizza place,” he said. The highest-earning external agents were a firm called Knowles Systems Inc. and its chief executive and co-owner, cosmetologist Lynette Robbins, according to an SEC lawsuit filing. Knowles, in The Villages, Fla., a retirement area, received at least $8.1 million in commissions, the filing said. Ms. Robbins, 72, has a license qualifying her to advise on hair and makeup, according to public records. A search didn’t turn up any financial qualifications. She isn’t registered as a broker or investment adviser with either the SEC or Finra, the Financial Industry Regulatory Authority. Ms. Robbins and her attorney didn’t respond to requests for comment. Her lawyer said in a motion to dismiss she “had no knowledge and did rather, typing—it out. But every so often, tempers flare, necessitating a more stringent brand of justice. In 2003, Wikipedia founder Jimmy Wales created the committee, known as ArbCom, as the final stop in the dispute-resolution process. “There are things that wouldn’t start an argument anywhere else that can still start an argument on Wikipedia,” says Ira Matetsky, a Manhattan litigator and the unpaid panel’s longest-serving current member. Among them: capitalization rules and whether individual television episodes deserve encyclopedia entries. In some early years, Wikipedia says, the panel handled more than 100 cases a year. Since then, the caseload has tapered off. Last year, it heard four new cases plus appeals and other matters, and this year, three thus far. Mr. Matetsky, who is regarded internally as a chief-justice figure, suggested it was because the committee’s standards have become higher and the site has accumulated what amounts to a body of law. Asked whether the panel’s members split into conservative and liberal factions like the U.S. Supreme Court, Mr. Matetsky said the committee, which typically decides matters of user behavior, not content, doesn’t lean left or right. “Occasionally you could say there are people who are stricter or more lenient in terms of the spirit of the law or letter of the law,” he says. Some committee members bristle at comparisons to actual courts and judges. “We are a dispute-resolution body on a website,” says an ArbCom member known online as Euryalus who, like some other members interviewed, doesn’t want his name used for fear of offline harassment. “The worst possible penalty we can think of is you’re not allowed to edit this website anymore.” But many Wikipedians view the committee, whose symbol is the scales of justice, as a legal body. Mr. Sohn, 55 years old, Woodbridge’s owner, Robert H. Shapiro, ‘vigorously’ denies SEC’s Ponzi label. Red Flags All registered brokers Share of brokers with at least one disclosure, by type Customer dispute 28.5 Brokers who sold private placements 8.4 All registered brokers Enforcement action Criminal or investigation 7.7% 1.2 3.0 2.1 Other, including ﬁred for cause 4.9 1.1 Note: Excludes disclosures of personal bankruptcies and other personal ﬁnancial issues. Source: Securities and Exchange Commission ﬁlings, Financial Industry Regulatory Authority, Securities Litigation & Consulting Group THE WALL STREET JOURNAL. not intend to place individuals in sham investments.” Knowles Systems filed for chapter 11 last month. It “denies it was negligent in providing leads to Woodbridge,” it said in a court filing. Its lawyer said Knowles just referred people to Woodbridge. Also, “this wasn’t a security,” he said. The SEC says it was. One way investors found Knowles and Ms. Robbins was through a personal-finance journalist named Jordan Goodman. He promoted Woodbridge on the radio, according to investor testimony to the SEC and to an order against Woodbridge by Colorado securities regulators. It was on the radio in 2014 that retired airline pilot CLINTON BRANDHAGEN Continued from Page One potential for better returns than in the public markets. In recent years, however, hundreds of billions of dollars in private placements have been sold each year by stockbrokers, often to individuals. And the brokers who sell them are far more likely than other brokers to have sketchy records, a Wall Street Journal analysis has found. One in eight brokers marketing private placements had three or more red flags on their records, such as an investor complaint, regulatory action, criminal charge or firing, the Journal found in a review of data including Securities and Exchange Commission records from September 2008, when they became electronically available, through 2017. That compares with one in 50 among all active brokers. Brokers selling private placements also are six times as likely as the average broker to report at least one regulatory action against them, the Journal analysis found. The figures suggest a sharp expansion in brokered sales of private placements over the past decade has created heightened risks for individual investors. “It’s one of the most abused areas of finance today,” said Jeffrey Sonn, a Miami lawyer who represents investors in disputes with brokers. “We get more cases from private placements than any other type of investment.” In 2017, private placements using brokers totaled at least $710 billion, according to the Journal’s analysis—a nearly threefold rise from 2009. MERCER VINE BROKER Ira Matetsky is the panel’s longest-serving member. says ArbCom is respected, whereas “in the metaphorical lower courts”—essentially, message boards to resolve disputes—“it’s much more of a frontier justice.” Typically, an editor asks the committee to hear a case, and members take a vote. In the case of the summary boxes, known on Wikipedia as stand, there was no Ponzi, this is all an SEC fabrication.” Several sales agents who marketed Woodbridge investments had disciplinary histories, including at least three who had been barred from the securities industry, according to investor lawsuits and Finra and court records. Among them was Donald Anthony MacKenzie, who runs Old Security Financial Group Inc. in Spring, Texas, a firm federal district courts have twice ordered to repay commissions from illegal sales of unregistered securities. The Texas commissioner of insurance sanctioned Mr. MacKenzie, known as Tony, in 2012 for selling investments without a license. That was the same year he was convicted of misdemeanor “disorderly conduct—firearm” for threatening another driver with a pistol, according to state and court records. In 2015, the Texas State Securities Board took emergency action to stop Mr. MacKenzie and Old Security from selling investments in Woodbridge. The agency said Old Security and Mr. MacKenzie were misleading investors by not disclosing the risks or their disciplinary history. Mr. MacKenzie, his firm and another of the firm’s principals were fined a total of $100,000 in a settlement the next year. Mr. MacKenzie didn’t reply to requests for comment. . THE WALL STREET JOURNAL. Tuesday, May 8, 2018 | A10A NY * * GREATER NEW YORK Front-Runners Emerge in Governor’s Race STAN GODLEWSKI/HARTFORD COURANT/ASSOCIATED PRESS A GOP mayor and a Democratic cable-TV businessman are in a dead heat, poll shows Democratic businessman Ned Lamont and Republican New Britain Mayor Erin Stewart have emerged as the top Connecticut gubernatorial candidates, according to a new poll released Monday, as their respective parties head to nominating conventions later this month. Ms. Stewart and Mr. Lamont are essentially in a dead heat in a head-to-head matchup, according to the poll conducted by Tremont Public Advisors, a Connecticut lobbying firm that isn’t involved in the race. “With six months to go before the November election, it BOB CHILD/ASSOCIATED PRESS BY JOSEPH DE AVILA Entrepreneur Ned Lamont and New Britain Mayor Erin Stewart are leading among the gubernatorial contenders in Connecticut. appears Lamont and Stewart are starting to get the attention of the voters,” said Matthew Hennessy, managing director of Tremont. Gov. Dannel Malloy, a Democrat with some of the worst poll numbers in the U.S., declined to run for a third term. Mr. Malloy hit a 23% approval rating, according to a Morning Consult poll from February. Political observers forecast a close race in a blue state Grand Entrance at the Met Gala where unaffiliated voters make up the largest voting bloc. The Cook Political Report rates this race as a tossup. Republicans are banking that Mr. Malloy’s poor poll numbers will weigh down the eventual Democratic candidate. Democrats are hoping their base’s dissatisfaction with Republican President Donald Trump will fire them up to turn out in large numbers in November. Connecticut’s next governor will face long-term fiscal problems as fixed costs including pensions continue to rise faster than revenue growth. Connecticut voters had a slight preference for a Republican candidate, according to the poll. A GOP contender beat a Democratic candidate 49.9% to 43.4%, though that is within the survey’s 4.5% margin of error. Mr. Lamont, a 64-year-old cable-television entrepreneur who opposed the Iraq war, became a national figure when he beat Joe Lieberman, a staunch supporter of the war, in the divisive 2006 Democratic primary for U.S. Senate. He lost in the general election to Mr. Lieberman, who ran as an independent. Ms. Stewart, who is 31 years old, is in the middle of her third term as mayor. She is running as a moderate Republican who boasts of her crossover appeal in New Britain, a city of roughly 73,000 residents where Democrats outnumber Republicans by about 5 to 1. The Republican nominating convention begins Friday, and the Democrats start their convention later this month. Candidates who secure the support of 15% of the delegates earn a spot on August’s primary ballot. Ms. Stewart is shaping up to be a formidable general-election candidate, attracting more support from female voters compared with her male Republican rivals, Mr. Hennessy said. Her main challenge will be surviving a primary where other GOP members have been running to her right, he said. In recent weeks, Mr. Lamont has earned several endorsements—including New Haven Mayor Toni Harp and Jonathan Harris, former executive director or the Connecticut Democratic Party—and appears to be separating himself from the rest of the Democratic pack, Mr. Hennessy said. His business background could appeal to some Republican voters, he noted. Mr. Lamont would beat Republican Danbury Mayor Mark Boughton by 10 points, the poll found. And Ms. Stewart would top Democrat Susan Bysiewicz, former secretary of the state for Connecticut, by 10 points. Builders Leave a Small Footprint in Bronx Garden EVAN AGOSTINI/ASSOCIATED PRESS HEAVENLY BODIES: George and Amal Clooney turned heads Monday at the Metropolitan Museum of Art’s Costume Institute benefit, celebrating the ‘Fashion and the Catholic Imagination’ exhibition. For most New Yorkers, construction is a messy, noisy business filled with clanging, dust, shouting workers and growling equipment. But at the New York Botanical Garden in the Bronx, the latest building project has been an exercise in doing the opposite. For the past 18 months, the institution’s new Edible Academy complex, a 3-acre facility that includes a classroom building, greenhouse and amphitheater, has been undergoing construction and landscaping. It has been taking place in a delicately choreographed production designed to minimize disruption in this oasis and protect the garden’s identity as a 250-acre living museum. The task has required extreme sensitivity, taking into account everything from the carefully nurtured soil on the site and the nearby old-growth forest to the Bronx River running below, said Robert Zirkel, vice president at EW Howell Construction Group, the firm managing the project. Talk about fussy neighbors. “It’s like working with 56,000 Picassos around you,” he said. Construction of the $28 million facility has been a discreet affair, taking place mostly behind tall fencing. Trucks and heavy-equipment vehicles are off the roads by the time the Botanical Garden opens at 10 a.m. Tires are washed to leave no tracks on the interior roadway. Even after the trucks are inside the fenced-off area, the vehicles can move only in specific zones to avoid compacting soil that needs to be prop- YANA PASKOVA FOR THE WALL STREET JOURNAL BY KEIKO MORRIS Carefully orchestrated construction on a New York Botanical Garden facility is designed to minimize disruption in this oasis. erly aerated and maintained. “The soil contains all sorts of micronutrients plants need,” said Toby Adams, director of the Edible Academy. In its previous form, the site contained gardens and two open-air shelters for its programs. When the new complex, ‘It’s like working with 56,000 Picassos around you,’ says Robert Zirkel. an expansion of the existing Ruth Rea Howell Family Garden, opens in June, the Botanical Garden will be able to broaden its programs with year-round classes, institution officials said. Designed by architecture firm Cooper Robertson, the facilities includes a single-story building of mass timber and concrete that will have two high-tech classrooms. The building will use a geothermal cooling and heating system. The expansion will feature new gardens, a greenhouse, an open pavilion and a lawn amphitheater. Just as the project is geared toward minimizing its impact on the environment, so was each step in its construction, Mr. Zirkel and garden officials said. The site sits on a partially rocky terrain overlooking the Bronx River and an old-growth forest. Workers have put in place a number of measures to prevent water, silt and debris from running into and polluting the river during heavy rains. Big deliveries of material and movement of equipment had to be in and out between 7 a.m. and 10 a.m. or on Mondays, the one day the garden is closed. These measures lengthened what could have been a construction timeline of one year, Mr. Zirkel said. But for important reasons. “You have to be sensitive to the staff, to the visitors,” he said. “You have to be sensitive to the ground and you have to be sensitive to nature.” BY BARBARA CHAI As a Scottish actor with a fine brogue, James McArdle is an unlikely candidate to play Louis Ironson, the gay, Jewish, verbose New Yorker in Tony Kushner’s epic, two-part play, “Angels in America: A Gay Fantasia on National Themes.” But Mr. McArdle has thrown himself into the hefty part unapologetically, despite initial fears of performing in the play’s hometown of New York City. With “Angels,” Mr. McArdle has made his Broadway debut and is nominated for Drama Desk and Drama League Awards for his performance. The play is set in 1980s New York and explores themes such as homosexuality, politics, civil rights, death and AIDS. Mr. McArdle, 29 years old, sat down for an interview before a recent performance. Here are edited excerpts. How has performing the play in New York differed from doing it in London? It’s really deepened our un- derstanding of the play. What’s fantastic is the response from the audiences, who understand every reference. It gives the play a new vitality and a new heat because the play’s come home. Do audiences here respond differently? They’re much more vocal in terms of Louis. I think a lot of people see themselves in him. I had to be unapologetic about it, and it’s been liberating... In London, I was trying to control certain elements of the BRINKHOFF-MOEGENBURG James McArdle of ‘Angels’ Explains Broadway vs. London James McArdle plays a Jewish, gay, verbose New Yorker in Tony Kushner’s epic ‘Angels in America.’ character that by the end of the run, I let go of. Coming fresh here, I was determined to let the darker parts of Louis show in an unapologetic way. When you live and walk around New York City, do clues or reminders of the play appear to you? Every street corner, I hear the line, “In the new century I think we will all be insane.” [Recited by a homeless woman in the play.] There’s not a street corner where there’s not a homeless person who’s not out of their mind. I find it hard to walk by them. What has been most interesting to you about performing on Broadway? How expensive the tickets are. It leaves a demographic that is very white and rich. I will come away with some sadness about that element of it. On the other hand, I can sense from this community, the actors, marketing people, producers, a love of theater.…Everything is bigger and bolder. After opening night, I felt like I had been hit by a truck. It took me a week or two to just get into the routine of doing this. It’s the intensity of the play and New York and Broadway. OYSTER PERPETUAL LADY-DATEJUST 28 rolex oyster perpetual and DATEJUST are ® trademarks. . A10B | Tuesday, May 8, 2018 NY * * THE WALL STREET JOURNAL. Now there’s a faster way to treat strokes: Take the hospital to the patient. The Mobile Stroke Treatment Unit It’s a stroke treatment center—complete with a CT scanner and access to an expert neurologist —that can travel straight to the patient, saving them precious time and precious brain cells. If you suspect someone’s having a stroke, call 911. Available in Manhattan, Queens, and Brooklyn. Learn more about the MSTU at nyp.org/mstu . THE WALL STREET JOURNAL. LIFE&ARTS Tuesday, May 8, 2018 | A11 HEALTH Can DNA Shed Light on Depression? Study shows gene tests can be effective in helping psychiatrists prescribe anti-depressants PAXIL OR PROZAC, Zoloft or Lexapro? When treating a patient suffering from depression, Brent Forester considers which anti-depressant to prescribe—ideally, one that will ease psychic pain without side effects. It can be a tough call. Deciding “becomes somewhat of an art—and a lot of it is educated guesswork,” says Dr. Forester, chief of geriatric psychiatry at McLean Hospital in Belmont, Mass., an affiliate of Harvard Medical School. He worries that sometimes psychiatrists “may think we are better than we really are” at making these choices. That may change as Dr. Forester and others enlist genomics, a form of precision medicine and an intriguing new frontier for the elusive science of the human psyche. Other branches of medicine, such as oncology, have embraced genebased testing to help determine which cancer patients need chemotherapy or surgery. But psychiatrists typically haven’t used genomics to guide treatment decisions, Dr. Forester says. One test, called GeneSight, uses a genetic analysis of DNA samples from a cheek swab to help doctors figure out which drugs are likely to combat a patient’s depression. The test examines a dozen genes to determine how well the patient will metabolize certain drugs and how his or her brain will respond to them. The test predicts the effects of more than 50 anti-depressants and anti-psychotics. Based on a patient’s results, drugs are categorized as ones to be avoided, ones that have some drawbacks and ones that can be used “as directed.” Barbara Dellovade, a retired real-estate broker in Acton, Mass., became depressed last year. Ms. Dellovade, who is 78 years old, was taking an anti-depressant, but “I wasn’t reacting well to it and it wasn’t helping me at all.” She consulted Ipsit Vahia, a geriatric psychiatrist at McLean Hospital and assistant professor at Harvard Medical School. Dr. Vahia told Ms. Dellovade about the genomics test, which retails for $1,500 and is covered by Medicare and some health plans. After receiving an analysis of Ms. Dellovade’s results, he switched her to a different anti-depressant and she began to respond in about six weeks, he says. Ms. Dellovade has been feeling better, she says, though “I am still not there.” Dr. Vahia has been using the gene test more with his older depressed patients but says clinical CLOCKWISE FROM TOP: ALEX NABAUM (ILLUSTRATION); MYRIAD GENETICS; MCLEAN HOSPITAL BY LUCETTE LAGNADO Brent Forester, far left, and Ipsit Vahia, have used a gene test, left, to inform decisions on anti-depressants. judgment remains paramount in prescribing. McLean Hospital is one of 60 sites across the country that took part in a randomized trial of GeneSight. The results, unveiled Monday at the American Psychiatric Association meeting, showed that patients fared better when physicians chose a medication with the help of the test, rather than relying solely on their judgment. Among the 1,167 patients in the trial, half took the GeneSight test and half were prescribed drugs based purely on their doctors’ clinical assessments. Genetics helps you “marry” a patient with the appropriate medication, says Bryan Dechairo, executive vice president for clinical development at Myriad Genetics, which funded the trial. Assurex Health, a subsidiary of Myriad Genetics, developed the GeneSight test. The results were striking, according to doctors at several medical centers who participated in the trial. Patients were more likely to respond to anti-depressants when the gene test was used to determine which drug they should be on; researchers found a 30% greater response to the medicine when the test was applied. Every patient in the trial had been on at least one anti-depressant that failed to work, and some had been on several that failed. The study shows that genetic tests can lead to better prescribing decisions, says John Greden, the principal investigator in the trial. Dr. Greden, a psychiatrist and executive director of the University of Michigan’s Comprehensive Depression Center, says that until now, many doctors took the following approach: “My favorite anti-depressant is this one, so I will try it. Oh, that didn’t work, so I will try this one.” Unfortunately, he says, under that hit-or-miss method—albeit informed by training and experience—“fewer than 40% of patients achieve remission.” Every year, 16 million Americans suffer an episode of depression, he says, making pinpointed diagnoses essential. Some doctors took awhile to come around to the GeneSight test. Charles DeBattista, a profes- sor of psychiatry and behavioral sciences at the Stanford University School of Medicine, says initially he was “somewhat skeptical.” “Prior to the study I used it very rarely,” says Dr. DeBattista, who specializes in patients with treatment-resistant depression. He has been using the test more on patients who “have had problems tolerating medicine in the past,” he says. “There is nothing magical about it; it is not a substitute for clinical judgment.” But it does inform him what drug to try on a patient with serious depression. His Stanford colleague Alan Schatzberg isn’t persuaded. The test “has some value,” says Dr. Schatzberg, a psychiatrist and a former president of the American Psychiatric Association. “It has some use but what it doesn’t do is tell you which specific drug to use.” He adds, “What the field really wants is a test that tells me which specific drug I should put my patient on.” That is precisely what Charles Conway, a professor of psychiatry at Washington University School of Medicine in St. Louis, likes about it. The test “provides recommendations,” Dr. Conway says. “It doesn’t say: ‘Give this drug only.’ It says: ‘You have a range of choices, which you will [make] based on your clinical judgment.’ ” BOOKS BROTHERLY LOVE, OCCASIONAL SIBLING RIVALRY EMILY SHUR FOR THE WALL STREET JOURNAL BY ELLEN GAMERMAN Jay and Mark Duplass are actors and filmmakers whose credits include ‘Transparent’ and ‘Wild Wild Country.’ WHEN MARK DUPLASS was 8 years old and his brother Jay was 12, they often crammed into the same twin bed. Not because they couldn’t sleep alone, but because it was more fun to be together. That image kicks off “Like Brothers,” a memoir by the indie-film duo out on Tuesday that explores their journey from shared mattress to professional bedfellows. In the past year, one or both Duplass siblings have worked on such varied projects as the new movie “Tully,” the Netflix documentary “Wild Wild Country,” TBS’s “Search Party” and Amazon’s TV series “Transparent.” The two also created the HBO anthology series “Room 104.” They live in the Los Angeles area, a few miles apart, calling or texting each other most days. Their weekends include a long run with a trek to a waterfall. How do two brothers spend this much time together and not kill each other? “We can kind of do therapy without a therapist,” Mark, now 41, said during a phone interview with Jay, 45. “This sounds corny, but it’s true: I care just as deeply about Jay’s well-being and feelings as I do about my own.” They grew up in Metairie, La., and as actors and filmmakers have drawn heavily from a well of male insecurities. Mark’s acting career took off with “The League,” a comedy that started on FX in 2009. Later, he played an adrift husband in “Togetherness,” an HBO series he created with Jay and actor Steve Zissis. He portrays a pretentious but ultimately decent rich guy in “Tully” and will appear in season two of Amazon’s “Goliath.” On “Transparent,” Jay is the wayward Josh Pfefferman, one of three children whose father comes out as transgender. He expects to return as the crazy theater-director boyfriend on the third season of “Search Party,” a dark comedy about friends who run into trouble after hunting for a missing classmate. The Duplass brothers have writPlease see BROTHERS page A13 . THE WALL STREET JOURNAL. A12 | Tuesday, May 8, 2018 LIFE & ARTS intensity,” says John Pandolfino, chief of gastroenterology and hepatology at Northwestern, which started offering hypnotherapy in 2006 and has plans to expand to two regional hospitals. Northwestern has trained health psychologists in GI disorders who have moved on to start programs at other academic centers. Sarah Quinton, a gastrointestinal psychologist at Northwestern, conducts the treatments there, along with two other psychologists and students in training. Because there aren’t many treatments for IBS, hypnotherapy has become “the front-line therapy,” Dr. Pandolfino says. Hospitals are finding hypnotherapy can help sufferers of painful digestive conditions. YOUR HEALTH | By Sumathi Reddy New York SARAH BLAU SETTLES into a wicker chair, stretching her feet onto an ottoman. In a soothing voice, Laurie Keefer, says, “I’m going to count from one to three, and as I count, your eyelids will get heavy and they’ll close whenever it feels right.” Dr. Keefer, a health psychologist at Mount Sinai Health System, has Ms. Blau progressively relax each part of her body and guides her to “a place of rest and comfort and healing.” “Enjoy the beauty of this natural, healing place,” she tells her, “and as you do, something very powerful and healthy and positive is taking place deep inside your body. Your body knows what it needs to maintain healing your gut. It knows how to keep pleasant sensations in and avoid pain and discomfort.” Hypnotherapy—when patients enter a trance-like state using relaxation and visual images—is often associated with alternative medicine. But increasingly medical centers are using it to treat digestive conditions like acid reflux, irritable bowel syndrome and ulcerative colitis, a disease Ms. Blau learned she had in 2016. Studies have shown hypnotherapy is effective reducing symptoms associated with these gastrointestinal disorders. Insurance companies usually cover the treatments. The body of evidence is strongest for IBS, but a 2013 study FROM TOP: ILLUSTRATION BY ROB WILSON; NORTHWESTERN MEDICINE A Surprise Medical Solution: Hypnosis Sarah Quinton, a gastrointestinal psychologist at Northwestern, is part of a team that conducts hypnotherapy treatments. found hypnotherapy was effective at prolonging remission in colitis patients. And a 2016 pilot study found patients with functional heartburn reported fewer symptoms. Dr. Keefer works at the Susan and Leonard Feinstein Inflammatory Bowel Disease Clinical Center at Mount Sinai. There she does hypnotherapy for patients with Crohn’s disease and ulcerative colitis, diseases caused by inflammation of the intestines. The treatment usually consists of about seven sessions over three months, with home practice in between. Studies have found the effects can last more than a year and work in more than half of patients. In addition to Mount Sinai, hypnosis for patients with digestive conditions is available at University of Michigan, Beth Israel Deaconess Medical Center in Boston, University of Washington in Seattle, Baylor College of Medicine in Houston and Loyola University Medical Center and Northwestern Memorial Hospital in the Chicago area. Mayo Clinic in Rochester, 5 Minn., also is exploring adding hypnotherapy for IBS patients. There is a three-to-six-month wait list for the treatment at the University of Michigan, says Megan Riehl, an assistant professor of medicine and gastrointestinal psychologist. “Some patients get a little uneasy about the word ‘hypnosis,’ ” says Andrea Bradford, an assistant professor of medicine at Baylor, which started offering the treatment in 2016. “It conjures up images of some guy in Vegas making you bark like a dog. It takes some education to explain to them what it constitutes and what it does not.” She says about one-third of patients are open to it. Experts theorize that hypnotherapy works because many gastrointestinal disorders are affected by a faulty connection between the brain and the gut, or digestive tract. The gut and brain are in constant communication. When something disrupts that communication, the brain misinterprets normal signals, which can cause the body to become hypersensitive to stimuli detected by nerves in the gut, causing pain. Experts believe hypnosis shifts the brain’s attention away from those stimuli by providing healthy suggestions about what’s going on in the gut. “It doesn’t get rid of the stimulus. Your GI tract is still moving. It’s just changing the threshold of perception so you’re not paying attention or feeling it with the same 5 CIGARS $ __ ONLY__ CIGAR.com is here to prove how serious we are about earning your trust and respect. How about five premium cigars for $5? Take 86% off MSRP and savor some fine, flavorful handmade cigars. You’ll score one each of Sosa, CIGAR.com American Label, Ramón Bueso Genesis, HC Series Maduro, and Gurkha Class Regent. Each premium blend offers a unique experience, making it the perfect mix for enthusiasts and beginners alike. This is a limited time, highly exclusive offer, so act quickly. www.CIGAR.com/CGSA895 Dr. Pandolfino says he will take patients with reflux problems whose symptoms aren’t improving off their medication. After that, if their acid levels are normal but they still experience symptoms, like chest pain, he recommends hypnotherapy. This happens with “a large number of patients,” Dr. Pandolofino says. David Dewey, a 58-year-old realestate developer in the Chicago suburbs, says hypnotherapy helped rid him of abdominal pain that sometimes kept him up at night. His doctor at Northwestern told him that his diagnosis of IBS was incorrect and that the real problem was related to his brain. His doctor said, he recalls, “It sounds crazy, but we’ve been having great success with hypnotherapy.” He figured he had nothing to lose, since nothing else had helped for two years. The pain disappeared in under 10 sessions. “Sometimes it creeps back a little, and I just do one or two [home] sessions and it goes away,” Mr. Dewey says. Olafur Palsson, a professor of medicine and clinical psychologist at the University of North Carolina at Chapel Hill, developed the first script, or protocol, for hypnosis treatment for IBS in 1995. The script has been adapted for use in other GI disorders. He has trained hundreds of therapists in the protocol, which he says 600 therapists across the country use today. Most professionals who conduct hypnotherapy treatments are psychologists. Shoba Krishnamurthy, a gastroenterologist at the University of Washington, got training and decided to incorporate it into her practice about three years ago. “It’s mostly for patients who have had a work-up but we haven’t found anything abnormal in tests, so there is not a specific abnormality to treat,” she says. Ms. Blau, a 32-year-old who has been undergoing hypnotherapy at Mount Sinai, began the treatments in the fall, when her colitis was under control, as a preventive measure. 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Tuesday, May 8, 2018 | A13 LIFE & ARTS BROTHERS EXHIBITION REVIEW Exploring a Museum’s Shifting Identity BY EDWARD ROTHSTEIN A ‘Nordic Spirit’ at the Nordic Museum, above; main entrance of the new building, designed by Mithun, left; the ‘Nordic Journeys’ exhibition features a film about Nordic-Americans living in Seattle, below left former school building. It partly resembled an immigrants’ attic. When I saw it a decade ago, there were artifacts everywhere—skis, statues, furniture, photographs. Life-size dioramas with mannequins appeared throughout. An impressive Danish-made exhibition told the history of Nordic immigrants and their “struggle to realize their dream of America.” This was quaintly affecting, partly because elsewhere such approaches had long been displaced, giving way to the contemporary “identity museum,” which is much less interested in celebrating immigration than in cataloging enduring struggles and contemporary trials. Now, that shift has taken place here; even the word “Heritage” has been dropped from the museum’s name. Identity, though, remains crucial. In an orientation gallery video, the talking heads include Blake Nordstrom, co-president of Nordstrom Inc., speaking about his Swedish heritage. An introductory wall display gives each nation a résumé of sorts, accompanied by a wildly varied assemblage of artifacts: an 1843 first edition of Kierkegaard’s “Either/ Or,” say, or a 2011 Finnish dress made from wool and peat moss, or a contemporary Icelandic lamp made from a whole codfish skin. On the second floor, we enter a gallery in which birch tree trunks stand among pillows resembling stones: a place for contemplation. A wall-size screen shows scenes of such stunning natural beauty that I immediately contemplated a Nordic voyage— an impulse the narrative later seems to encourage. You then enter a 130-foot-long “Nordic Region” gallery chronicling Nordic history, beginning with Norse mythology and Viking conquests and accompanied by Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day. 30s d Edmonton V Vancouver 70s <0 50s C g ryy Calgary 10s ip Winnipeg Seattle 60s 70s Portland Por P d Helena l Billings Boise i 60s 50s Ottawa Bismarckk 60s 0s 50s 40s 60s t Montreal 70s 20s 30s A Augusta 40s 70s 50s T t Toronto A bany b Albany Boston t 60s Buffalo ff l Hartford artford Milwaukee k Detroit t Sioux oux FFalls ll New Yorkk ew Y 70s Cleveland Clevel d Chicago Ch g Chic Reno Salt LLake ake City Des es Moines 70s Philadelphia Cheyenne Che h y 60s Ph hil d lphi h 80s Omaha h Pittsburgh Sacramento Indianapolis d p p g Springfield Denver San an Francisco 80s 90s Washington h gton hi on D.C. D.C DC Kansas Charleston Charles Topeka Colorado C l d 90s 70s Las 60s Richmond City 100+ h d Springs p g Vegas V St. Louis L Lou Louisville L Lou ill 90s Wichita h hit l igh h Raleigh 70s 90s Nashville h ill Angeles Los A Ange Charlotte C h l tt Santaa Fe F Oklahoma kl homa City Memphis h hi C b Columbia 70s 100s Ph Phoenix Albuquerque Alb q q Warm Rain San Diego Atlanta Atl t Littlee Rock Tuc Tucson Birmingham i h 90s Ft. Worth 80s Dallas D Cold T-storms El P Paso Jackson Jack Jacksonville b Mobile 90s 90s Austin A ti 30s Stationary Houston t Snow Orlando l d New ew Orleans 40s 60s Tampa San an n Antonio A 70s 70s Mr. Rothstein is the Journal’s Critic at Large. ‘We are, essentially speaking, genetic B-minuses who came from nowhere’ their workloads increase. They lay out their rules for arguing, which include waiting a day or two before engaging on a heated subject, not fighting at night and apologizing even when they think they’re right. During one uncomfortable exchange they reconstructed in the book with old emails, Jay writes that he wants to be more openly critical about a piece of Mark’s writing but finds himself holding back. “If this doesn’t make sense and is offensive, I am deeply sorry,” Jay writes. “Know that my love for you is unshakable and forever.” Mark gets insulted: “I definitely am feeling bummed and hurt and that u maybe could have said it in a nicer way.” Their compromise: Be more blunt, but do it gently. The brothers say they have taken breaks from their relationship, including when they realized they were closer to each other than to their girlfriends. Even so, their spouses say they wouldn’t meddle with the brotherly bond. “I told Jay that if his brother didn’t like me, I couldn’t continue dating him,” Jen Tracy-Duplass, a social worker, writes in the book. “I think their creative marriage is just as important as Jay’s and mine.” Jay says his 9-year-old daughter and 6-year-old son recently started squabbling, and it has thrown him. “Everyone else in the world is like, ‘Yeah, that’s what brothers and sisters do,’ ” he said. “I’m like, ‘I don’t even know how to process this.’ ” The WSJ Daily Crossword | Edited by Mike Shenk Weather Eugene videos, reproductions and artifacts. A parallel “Nordic America” gallery surveys a century of American arrivals, including a 64foot-long collection of artifacts illustrating occupations, communities and passions. The earlier museum—even in the late 20th century—had the flush of immigrant culture on it, ultimately cheering an American symbiosis. But here, immigration is mainly associated with discomfort. We are told that so many left Nordic Europe because they “thought that life in America would somehow be better”—the “somehow” implying delusion. Celebration of American possibility amid hardship is nearly gone. Instead we are offered the promise of something called the “Nordic Way.” You encounter it only by leaving the American galleries and returning to the Nordic ones to find a checklist of Nordic virtues: tolerance, freedom of expression, social justice, egalitarianism, entrepreneurialism, sustainability, the welfare state. This “post-American” caricature is strangely artificial and self-promotional. But entrepreneurial? The slight achievements highlighted are the “three-point seat belt,” Legos and the “spanner wrench.” An enduring “Nordic Spirit”? The history—from the Vikings to the laborers who helped build America—has a different character than any suggested by the museum’s list of Nordic ideals. As for the Nordic state, much could be said, and much more should have been said. For all its virtues, the Nordic Museum seems to turn away from the immigrant land it once embraced, submitting instead to an imagined utopia thriving in the Old Country. The irony is that no Nordic nation has ever been as successful as the U.S. in its longterm embrace of diversity and immigration. That is something this museum’s ancestor recognized without a problem. WIQAN ANG FOR THE WALL STREET JOURNAL Seattle IT MAY BE that every child of immigrants feels a certain amount of pride in breaking away from the accented speech and old allegiances of parents—feeling freshly attentive to fashion and relishing a new cultural fluency—despite an occasional twinge of guilt or even embarrassment. Such sentiments may have also affected the imposing new Nordic Museum here—a 57,000-squarefoot, $48 million project designed by the Seattle firm Mithun. Under the oversight of its chief executive, Eric Nelson, it has just opened adjacent to the working waterfront in Ballard—a neighborhood where Nordic immigrants settled and worked beginning in the late 19th century. The museum is handsome, museologically au courant, materially polished and geometrically crisp, with a skin of striated zinc on the outside, blond woods and white walls within. Its pedigree is high—exhibitions are designed by Ralph Appelbaum Associates—and its ambitions grand, with nearly 600 artifacts and 25 video and interactive screens surveying the history of those who hail from Norway, Denmark, Sweden, Finland and Iceland (along with Aland, the Faeroe Islands and Greenland). These cultures are, in fact, deeply imprinted on this region. Between 1840 and 1920, some 2.7 million Nordic immigrants made their way to North America— nearly a third of their nations’ populations. Many came to the Northwest, where landscapes and climates recalled their homelands, and where skills such as logging, boat-building, fishing and farming were needed. In 1910 about a third of Seattle’s foreign-born were Nordic. Now some 12 million Americans claim such roots. This subject is not as eccentric as it might seem. And it turns out that this museum should take a favored place on anybody’s short list of Seattle attractions. But given its importance, the museum’s perspective should also be more closely examined. Its attitudes really do resemble those of a second- or third-generation immigrant: a bit cocky, self-consciously fashionable, and straining to put immigration at arm’s length. This is quite different from its predecessor. The museum’s first incarnation—then called the Nordic Heritage Museum—opened about a mile away in 1980, in a turn-of-the century Continued from page A11 ten and directed as well, including 2010’s “Cyrus” and the 2006 cult hit “The Puffy Chair.” They filled the memoir with tips for working in the entertainment industry. “We so often get emails from people trying to get advice from us, and we wonder why—we are, essentially speaking, genetic B-minuses who came from nowhere with no particularly erudite way of speaking or genius profile,” said Mark. “We built a business for ourselves just out of hard work, and I think people really want to hear from us about that.” As filmmakers, Mark has traditionally pounded out first drafts while Jay refines them. But lately, their interests have diverged more often. Mark is focusing on production—the brothers recently produced the critically lauded “Wild Wild Country,” about a cult’s formation in 1980s Oregon—while Jay is gravitating toward acting. In “Like Brothers,” they admit they get jealous of each other at times and share their concerns that their friendship can suffer as 80s 50s A h g Anchorage Pierre 70s Honolulu l l Miami Flurries Showers Ice Today Tomorrow City Hi Lo W Hi Lo W Omaha 80 58 t 84 56 pc Orlando 87 64 pc 87 65 s Philadelphia 75 52 s 77 54 s Phoenix 103 73 s 104 75 s Pittsburgh 74 55 pc 78 62 pc Portland, Maine 64 44 s 66 43 pc Portland, Ore. 77 56 c 67 49 c Sacramento 83 55 s 80 52 s St. Louis 79 62 s 85 65 t Salt Lake City 81 58 s 85 59 pc San Francisco 68 56 s 66 53 s Santa Fe 86 48 pc 87 52 pc Seattle 75 54 pc 63 50 sh Sioux Falls 77 56 t 79 49 pc Wash., D.C. 76 57 s 78 59 s International City Amsterdam Athens Baghdad Bangkok Beijing Berlin Brussels Buenos Aires Dubai Dublin Edinburgh Hi 79 78 86 95 81 76 80 71 102 60 62 Today Tomorrow Lo W Hi Lo W 56 s 76 53 pc 63 t 78 62 pc 66 c 86 65 s 80 pc 94 79 t 51 pc 85 61 c 56 s 80 60 t 55 s 78 51 pc 62 t 73 63 c 84 s 107 89 s 43 r 53 41 r 43 r 55 42 r City Frankfurt Geneva Havana Hong Kong Istanbul Jakarta Jerusalem Johannesburg London Madrid Manila Melbourne Mexico City Milan Moscow Mumbai Paris Rio de Janeiro Riyadh Rome San Juan Seoul Shanghai Singapore Sydney Taipei City Tokyo Toronto Vancouver Warsaw Zurich Hi 80 73 85 85 70 90 70 72 78 78 96 63 73 79 73 91 81 79 107 71 85 73 76 91 76 83 61 68 65 78 78 Today Tomorrow Lo W Hi Lo W 56 s 79 56 t 55 t 70 55 t 70 pc 86 69 pc 74 t 80 75 sh 60 sh 70 60 r 79 pc 93 76 pc 56 pc 70 56 s 47 s 74 50 s 49 t 69 45 pc 54 t 79 54 pc 81 pc 96 81 c 48 pc 66 48 pc 54 pc 74 51 pc 59 pc 73 60 t 50 pc 66 41 pc 82 pc 92 83 pc 54 s 77 50 pc 69 sh 80 68 pc 83 s 100 75 sh 59 t 71 57 pc 74 sh 85 75 pc 48 pc 70 48 s 56 pc 73 59 s 82 pc 90 79 t 59 pc 76 60 s 70 t 77 69 c 53 r 61 55 sh 45 s 69 54 c 50 pc 62 48 pc 55 s 81 59 pc 50 pc 73 50 t 2 3 4 5 6 7 8 9 10 11 12 13 Solve this puzzle online and discuss it at WSJ.com/Puzzles. s s...sunny; pc... partly cloudy; c...cloudy; sh...showers; t...t’storms; r...rain; sf...snow flurries; sn...snow; i...ice Today Tomorrow City Hi Lo W Hi Lo W Anchorage 53 44 c 54 45 c Atlanta 81 61 pc 84 62 s Austin 89 63 s 88 63 pc Baltimore 76 54 s 78 55 s Boise 86 58 pc 80 50 pc Boston 63 48 pc 64 47 pc Burlington 74 50 s 77 57 s Charlotte 79 59 pc 81 59 s Chicago 79 58 s 75 61 t Cleveland 69 54 s 80 63 pc Dallas 92 67 pc 89 65 pc Denver 78 50 s 81 54 pc Detroit 74 51 s 78 63 pc Honolulu 82 69 pc 82 71 pc Houston 90 67 s 89 66 pc Indianapolis 76 53 s 77 62 pc Kansas City 83 61 t 87 62 pc Las Vegas 100 76 s 103 76 s Little Rock 89 66 pc 88 66 pc Los Angeles 79 60 pc 79 61 pc Miami 86 70 pc 85 71 pc Milwaukee 78 53 s 67 56 t Minneapolis 72 60 r 73 53 r Nashville 79 56 pc 83 67 pc New Orleans 90 71 s 89 68 pc New York City 72 54 pc 74 56 s Oklahoma City 88 65 pc 88 64 s 90s 80s 80s 60s U.S. Forecasts Mpls./St. p s / . 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Coast hours 66 Wood rod Previous Puzzle’s Solution 21 Wide shoe width 43 Serving those D AMU P A L A S T N T 67 NBC fixture fond O B E S E C A N I S H O E who are serving of wordplay, and 22 Popular electric P OWE R MOWE R I R I S E V E C A R T O P MO S T 45 Damascus a phonetic hint to autos R E D C H I N A C R OWE resident this puzzle’s P E N S E C O N D 24 Not kissing one’s G O B A D S N OWY OWL spoonerisms 46 Frees from wooers? MO O S O I L S WO O constraints 68 Matches, as C OWT OWN S MO N K S 28 The musketeers W I D E S T C A P files 48 Omar of before W I L D E S P A R T A N S R E N T S T O A R T L O O 69 “What a pity!” “House” d’Artagnan, e.g. A L D A B L OWB Y B L OW 1 P L O T S SW A G E E Y A R D R A I S E S T E E D . A14 | Tuesday, May 8, 2018 THE WALL STREET JOURNAL. * **** SPORTS BASKETBALL Don’t Overthink the NBA Playoffs The Warriors, Rockets, Cavs and Celtics are who we thought they were BY BEN COHEN Kevin Durant Chris Paul the West, and it even seemed possible the top-seeded Toronto Raptors wouldn’t be humiliated by LeBron James and four human beings who happen to be wearing Cavs uniforms. It wasn’t. What makes this year’s NBA playoffs interesting is why those teams are winning. The Celtics, Cavaliers, Warriors and Rockets find themselves on the brink of the conference finals be- cause each one of them has exploited a strategic advantage that any smart basketball fan could have identified even before the season. They’re winning because of how they were built to win. The Celtics have Brad Stevens on their bench, and he’s the reason they’re one game from the Eastern Conference finals with Kyrie Irving and Gordon Hayward also on their bench. LeBron James Brad Stevens There comes a point in every playoff series when teams know so much about each other they could tell you the flavor of their opponent’s breakfast smoothie. The games are won on the margins, and no coach is worth more in these situations than Stevens, who consumes a voluminous amount of information in search of any edge that can help the Celtics win a playoff game. Stevens is as respon- CLOCKWISE FROM TOP LEFT: ERIC GAY. FRANK GUNN (ASSOCIATED PRESS); MADDIE MEYER, GENE SWEENEY JR. (GETTY IMAGES) THE NBA SEASON is long enough to make you question everything you thought you knew about the NBA season. It has been seven months since teams reported for training camp, and so much happened that it’s easy to forget even the unforgettable moments, such as the time that J.R. Smith threw a bowl of soup at one of Cleveland’s assistant coaches. That is how nuts the NBA gets on a nightly basis. A player fired soup at his coach and you might have already forgotten about it. The perpetually dramatic nature of the modern NBA can make you think so much about basketball that you end up overthinking. You read Twitter. You listen to noise. You trick yourself into believing stuff that isn’t true, if only because the league is a whole lot more entertaining that way. Inevitability gets boring over 82 games. But let’s go all the way back to the ancient days of October, before soup was a weapon, and remember how this season was supposed to play out. The public odds had the Golden State Warriors and Houston Rockets favored in the West, and the Cleveland Cavaliers and Boston Celtics favored in the East. And look where the NBA is now: The Cavaliers swept their secondround playoff series, the Warriors and Rockets take 3-1 leads back to their home courts on Tuesday night, and the Celtics can end their 3-1 series at home on Wednesday night. Everything happened, and nothing changed. The upshot of this weekend’s playoff games is that the NBA’s four best teams are likely to be playing each other in the conference finals, and they are the NBA’s four best teams for exactly the reasons they were expected to be. Except they didn’t play that way for most of this regular season. The unbeatable Warriors looked awfully beatable with their four All-Stars injured at various times. The Celtics were so depleted at one point they could’ve used coach Brad Stevens as their point guard. The Cavs exiled six players at the trade deadline, and that was a month before their civil soup war. The Rockets spent the last few weeks of the most successful regular season in the history of the franchise anxiously waiting for something terrible to happen. It seemed possible that a surprising upstart would emerge from sible as anyone for Boston’s surprising 3-0 lead against the Philadelphia 76ers. His strategies have neutralized Sixers guard Ben Simmons on offense and dragged Sixers center Joel Embiid away from the basket on defense. He is brilliant at putting his players in a position to succeed, which happens to be the entire point of his job. Cleveland has LeBron James. Golden State still has more talent than any NBA team ever constructed, and the way the Warriors annihilated the New Orleans Pelicans on Sunday was a reminder of what an enormous upset it would be if they didn’t repeat as champions. Steve Kerr explained his decision to unleash the destructive lineup of Stephen Curry, Kevin Durant, Klay Thompson, Draymond Green and Andre Iguodala from the very beginning of the game with simple logic: “You’re on the road, you’re threatened, you put your best five guys out there.” They played 18 minutes together. They outscored whatever lineups the Pelicans bothered playing by 63 points per 100 possessions. They won. Houston has James Harden and Chris Paul. Harden is almost certainly going to be named the NBA’s most valuable player, which makes it all the more unfair that Paul might be the Rockets’ most valuable player in the playoffs. They signed him last summer not only because he’s a Hall of Fame point guard and not only because it meant they would have a Hall of Fame point guard on the court for every possession of every game. They also signed Paul for offensive variety. This is a team that fetishizes efficiency, believes in shooting more layups, free throws and 3-pointers than anyone thought possible and shuns the mid-range. In the playoffs, though, they can’t be picky. When teams force them to play in the midrange, it’s useful to have a player who loves the mid-range. And the presence of Chris Paul is their strategic adjustment this season. What happened over the weekend was Houston’s plan come to life. Paul was personally responsible for more than half of the Rockets’ attempts from the mid-range in their two games against the Utah Jazz. And he was efficient from the land of inefficiency. Paul, a career 45.9% mid-range shooter, shot a career-high 53.9% from the mid-range in his first season with a Rockets offense that’s designed to stretch defenses, and he’s shooting 53.1% in the playoffs after he went 8-of-13 this weekend. The Rockets, like the Celtics, Cavaliers and Warriors, won for the reason they were supposed to win. It was a perfect encapsulation of this entire NBA season. MLB BY JARED DIAMOND Boston AS THE BENCH coach for the Houston Astros last year, Alex Cora clearly remembers the scouting report for how to attack the Boston Red Sox. “Everything we talked about was, ‘There are a lot of pitches right down the middle that they take, like predetermined takes,’” Cora said. Indeed, the Red Sox let more strikes go than any team in the major leagues in 2017, failing to swing at about 38% of pitches they saw in the zone. Far too often, outfielder Andrew Benintendi said, a drivable ball would harmlessly pass by, leaving him muttering to himself, “I don’t know why I didn’t swing at that.” That syndrome affected everybody, contributing to an offense that ranked last in the AL in home runs and next-to-last in slugging percentage. Houston took advantage of that when it played Boston in eight consecutive games last autumn, first to close out the regular season and then in the American League Division Series. The Astros won six of them, holding the Red Sox to three runs or fewer five times and vanquishing them from the playoffs en route to the franchise’s first championship. So when Cora took over as Boston’s manager in 2018, he immediately knew one thing he wanted to change. Along with new hitting coach Tim Hyers, whom he hired away from the Los Angeles Dodgers, Cora gave his batters a simple instruction: When you see a good pitch, hack away, no matter the count or situation. The results have been remarkable. The Red Sox, the owners of baseball’s best record at 25-9, lead the AL in slugging percentage (.460) and batting average (.269), while ranking second in the sport in runs scored (192), trailing the New York Yankees. The players largely haven’t changed, save for the addition of free-agent outfielder J.D. Martinez. Instead, the Red Sox have accomplished this massive turnaround by changing their entire strategy: By swinging at nearly 71% of pitches in the zone, they now take fewer strikes than anybody in the league, an overhaul to their approach at the plate that has elevated them into serious World Series contenders. Cora saw the potential value of contact last season with the Astros, who struck out less frequently than any other team in the majors. But contact alone doesn’t equal offensive performance. Take last year’s Red Sox, who ranked 27th in baseball in strikeout rate—and 22nd on on-base-plus-slugging percentage, thanks largely to their lack of thump. (They still won their division, benefiting from a pitching staff that finished second in the AL in ERA.) This version of the Red Sox, like the Astros before them, has managed to keep strikeouts low while seeing significant increases in power. “Now guys are up there hunting their pitch early in the count,” Hyers said. “When you’re too passive, ELISE AMENDOLA/ASSOCIATED PRESS THE BOSTON RED SOX HAVE A NEW ATTACK PLAN Entering Monday, Mookie Betts leads the majors in batting average, slugging percentage, OPS and home runs. you’re always playing from behind, and you have more defensive swings than aggressive swings.” When Cora, a rookie manager, assumed the role and dove into the data, he immediately pinpointed a handful of players who he thought would dramatically improve by attacking earlier in the count. Center fielder Mookie Betts stood out. He swung at just 53.8% of strikes last season, fourth-fewest in baseball, and posted a career-low OPS of .803. With Cora’s blessing, he has swung at almost 60% of strikes this season, and his production has soared: Entering Monday, Betts led the majors in batting average, slugging percentage, OPS and home runs, emerging as an early MVP candidate. Shortstop Xander Bogaerts’s adjustment was perhaps even more extreme. He swung at fewer strikes than anybody last season, just 53%, resulting in a .273 batting average and .746 OPS. This season, he is swinging at 66% of strikes, and his OPS has climbed to .949, to go along with his .333 average. “They didn’t realize it was going on,” Cora said. “It was just part of their approach.” That’s not a surprise. The Red Sox have preached patience for years, an organizational philosophy that dates back to when Cora joined them as a player in 2005. Since then, the Red Sox have swung less often—at all pitches—than any team in MLB over that span, registering at 43.7%. While players say they were never explicitly told to take pitches, the approach has remained pervasive, establishing itself as part of Boston’s culture. Now, instead of taking pitches to tire out the starting pitcher, progressive teams increasingly look to attack the starter early, be- fore opposing managers unleash the parade of flamethrowers that comprise modern bullpens. So right away, Cora made it a priority to establish a new offensive identity. He recalled sitting at lunch with Betts early in January and telling him, “Dude, I can’t wait for you to get that four-seamer, that first one of the season, and you hit it out of the ballpark.” It nearly happened. On the first pitch of the season, a 93 mph fastball by Chris Archer of the Tampa Bay Rays, Betts blasted a rocket to the deepest part of Tropicana Field. As it soared toward the fence, Cora thought to himself, “Oh, shit, he did it,”—only to watch Gold Glove center fielder Kevin Kiermaier rob Betts of an extra-base hit. For Cora, it was good enough. “That set the tempo,” he said. “It was like, ‘This is who we are, and we’re going to be ready to hit.’ ” . THE WALL STREET JOURNAL. Tuesday, May 8, 2018 | A15 OPINION The Two Rod Rosensteins In federal court last Friday, Robert Mueller’s prosecutors claimed it was no big MAIN deal if they STREET didn’t abide By William by the Justice McGurn Department’s own regulations in their prosecution of former Trump campaign manager Paul Manafort. Before a manifestly skeptical judge, they argued their real authority to do what they did is rooted in (secret) “discussions” with Deputy Attorney General Rod Rosenstein. Three days earlier, Mr. Rosenstein had himself taken a distinctly different approach when the authority in question belonged to Congress. When asked about nascent efforts to impeach him because of dissatisfaction with the way he has responded to congressional subpoenas, Mr. Rosenstein’s choice of words was arresting. “The Department of Justice,” he said, “is not going to be extorted.” Meet the two Rod Rosensteins. The first Rod Rosenstein, who oversees the special counsel, seems to have signed off on everything Mr. Mueller has done, from his choice of a prosecutorial team devoid of any Trump supporter to the expansion of Mr. Mueller’s authority well beyond his public mandate. The president may bellow about witch hunts, and federal Judge T.S. Ellis may complain that no special counsel should have “unfettered power,” but if Mr. Rosenstein believes there are limits on what Mr. Mueller can do, he isn’t letting on. By contrast, Mr. Rosenstein has been less than accommodating in signing off on documents Congress has demanded. The documents are essential to informing lawmakers about what went on in the 2016 presidential election. Today Congress is rightly frustrated, at not only the pace of production but also the heavy redactions. This is why congressional requests for documents have turned into subpoenas, and why subpoenas are now turning into calls to hold Mr. Rosenstein in contempt or impeach him. At stake is the ability of Congress to fulfill its oversight responsibility. The transcript from Friday’s oral argument in Judge Ellis’s courtroom illuminates another area of Mr. Rosenstein’s contributions to accountability. Specifically, the judge was dealing with a motion from Mr. Manafort contending that the bank- and tax-fraud charges lodged against him are illegitimate because they a) had nothing to do with the 2016 election and b) didn’t “arise” from the Russia-collusion investigation (the charges originated in an earlier and separate Justice investigation picked up by the special counsel). The big question—which Judge Ellis also raised—is whether “the special prosecutor has unlimited powers to do anything he or she wants.” In theory Mr. Mueller’s powers are limited in two ways: He reports to Mr. Rosenstein, and he operates under two 2017 Rosenstein memos (of May 17 and Aug. 2) authorizing and clarifying his investigation. It isn’t clear, however, that Mr. Rosenstein has in fact imposed any limits. And Mr. Mueller’s own team told Judge Ellis they don’t consider themselves limited by the two Rosenstein memos. Limiting Congress but letting the special counsel do pretty much what he pleases. David Rivkin, a constitutional lawyer who has served in the Justice Department and the White House Counsel’s Office, says what matters isn’t whether Mr. Mueller technically reports to the Justice Department but whether he actually operates under any real limits. “A special counsel with unlimited jurisdiction, who cannot be removed but for ‘cause’ and isn’t effectively supervised by an attorney general, is completely unaccountable and therefore constitutionally unacceptable,” he says. In his courtroom, Judge Ellis characterized the Mueller team’s claims about the initial Rosenstein letter authorizing the special counsel investigation this way: “We said this is what the investigation was about. But we’re not going to be bound by it, and we weren’t really telling the truth in that May 17 letter.” Ditto for the argument that Justice can defy a lawful congressional subpoena if the release of documents might compromise a criminal investigation. Certainly Congress should not seek to wreck a criminal investigation, and should be open to acceptable compromises. But Congress shouldn’t let the mere fact of a criminal investigation lead it to step aside and shirk its core constitutional responsibility: holding the government accountable to the people. Impeachment is a perfectly appropriate means to this end, which is why the Constitution provides for it. True, the last appointed federal executive impeached by Congress was a cabinet member in the administration of Ulysses S. Grant. But Congress impeached a judge as recently as 2010, and there are no constitutional exemptions for deputy attorneys general. The bar for impeachment is set high, and for good reason. The process requires Congress to act as a coequal branch of government, which means acting collectively as a body. If Congress ever does hold an impeachment vote to express its displeasure with Mr. Rosenstein’s actions, Republican and Democratic members alike will have to calculate the risks knowing that, however they voted, the American people would judge them by their decision. Which would be more political accountability than we’ve seen since the Russia-collusion investigation started. Write to email@example.com. Beware the Arms-Control Community By Taylor Dinerman H ard-won experience has taught Washington to be skeptical of anything Pyongyang promises, especially about its nuclear program. It seems the lesson hasn’t been forgotten, given the skeptical bipartisan reaction to North Korea’s April 20 announcement that it is shutting down its nuclear testing program and halting its missile tests. And President Trump’s open and loud readiness to walk out of talks with Kim Jong Un is an encouraging sign that he won’t succumb to the wishful thinking that plagued his predecessors. There will always be a temptation to proclaim that an unsatisfactory agreement is a great diplomatic triumph. The short-term political rewards of a bad “peace” deal are considerable. But Mr. Trump prides himself on his deal-making skills, and any agreement that lacks comprehensive verification mechanisms would be a failure. Fortunately, John Bolton, the new national security adviser, is an expert in the tricky realm of arms-control verification. He understands that any flaws in an agreement will be exploited by America’s foes. Such problems will also find ready defenders in the international community. It has a history of defending bad actors like North Korea. In 1985 arms-control advocate Sidney Drell and his colleagues acknowledged: “The available evidence points to a Soviet reluctance to embrace the relationship of mutual deterrence with enthusiasm.” But, they continued, this does not “justify claims” that the Soviet Union broke the 1972 Anti-Ballistic Missile Treaty, “or is preparing to do so in the near future.” Yet in 1989 the Soviet foreign minister admitted at the United Nations that his country was cheating on the agreement. The credibility of any verification regime will depend not only on how intrusive and extensive it is but also on the will of the U.S. and its allies to enforce it. One way to do this would be to give the U.S., South Korea and Japan a binding right to cancel the agreement at any time. This would help ensure current sanctions would quickly “snap back” at the first sign of North Korean cheating. Mr. Trump should not allow the U.N.’s International Atomic Energy Agency to have a decisive role in judging whether an agreement to denuclearize North Korea has been violated. In April 2015 Mr. Bolton made the point that “U.N. inspectors have never found anything on their own other than what we’ve given them or others have given them in the form of intelligence.” To succeed, the Trump administration must develop a plan to respond firmly and decisively to any North Korean cheating. This should include a prearranged agreement with as many allies as possible to cut off diplomatic as well as economic relations with Pyongyang. Another aspect of this response would be to have U.S.based military units ready to reinforce South Korea in case a violation is detected. The U.S. government must be ready to counter any claims—whether from North Korea, its apologists or even ostensible American allies— that any violations are insignificant. More than a few people and organizations in the armscontrol community stand ready to help Mr. Kim if he cheats on an agreement. Mr. Dinerman writes on space policy and national security. Walter Russell Mead is away. What’s at Stake in the Attack on Haspel By David B. Rivkin Jr. And Lee A. Casey G ina Haspel reportedly offered last week to withdraw her nomination as director of the Central Intelligence Agency. The White House declined and now must stand behind her as she faces an unjustified assault involving the Bush administration’s enhancedinterrogation program. Shortly after 9/11, the administration concluded that it needed to obtain as much actionable intelligence as possible to avert future attacks. It decided to explore, and ultimately adopted, the use of interrogation methods against some al Qaeda operatives far more rigorous than would have been permissible against lawful prisoners of war. The administration was properly mindful of U.S. statutes and obligations under the United Nations Convention Against Torture. Even unlawful enemy combatants may not be subjected to torture or to cruel, inhumane or degrading treatment. Where to draw the line? It was not for the CIA, much less Ms. Haspel, to answer that question, but for the Justice Department’s Office of Legal Counsel, which advises federal agencies on the law. OLC’s guidance, in the form of several memos issued in 2002 and 2003, was communicated through the CIA’s general counsel to agents in the field and was the basis on which the enhanced-interrogation program was carried out. The guidance was precise and unambiguous. It listed all the legally permissible interrogation techniques, backed up by appropriate safeguards. The details of this program were fully and repeatedly briefed to the so-called congressional Gang of Eight—the House and Senate majority and minority leaders and chairmen and ranking members of the intelligence committees. None raised a word of objection. The responsibility for CIA policy belongs to the president and Congress, not agents. But as the fear of terrorism receded, one of OLC’s memos was leaked to the press, in June 2004. It ignited a debate, in and out of government, over what the administration’s opponents labeled “torture.” (We supported the administration in these pages.) OLC soon withdrew that memo and issued revised guidance on Dec. 30, 2004. Although narrower and more cautiously reasoned than the original, the new guidance stated unequivocally that “we have reviewed this Office’s prior opinions addressing issues involving treatment of detainees and do not believe that any of their conclusions would be different under the standards set forth in this memorandum.” The CIA program ended in November 2007, and President Obama formally banned coercive interrogations in January 2009. Congress also passed a series of statutes limiting the CIA’s interrogation protocols to the benign techniques featured in the U.S. Army Field Manuals. To assuage concerns about Ms. Haspel’s career, the CIA has offered to make the relevant materials available to the Senate for review behind closed doors. It should resist the request of some senators to declassify her entire personnel file. Since Ms. Haspel spent almost her whole career in clandestine service, was posted overseas on numerous occasions, and ran covert assets against hard targets, such disclosure would be certain to expose sensitive operations, jeopardize the safety of U.S. and allied intelligence agents, and damage national security. Ms. Haspel has been criticized for her role in the CIA’s 2005 destruction of videotapes showing interrogations. At the time, she served as chief of staff to Jose Rodriguez, director of clandestine programs, who authorized the destruction. Given the existence of written transcripts, which included descriptions of the specific interrogation techniques being used, retention of the tapes was not required by law or regulation. There was also justifiable concern that the tapes might be leaked someday, revealing the identity of covert CIA operatives. When Mr. Obama’s deputy CIA director, Mike Morrell, investigated the matter, he wrote that he “found no fault with the performance of Ms. Haspel,” who had acted “appropriately.” Mr. Rodriguez was reprimanded only for not obtaining explicit approval of his superiors before destroying the tapes. What is at stake here is not just the career of a courageous, dedicated public servant. Like other government employees, intelligence officers cannot ignore the policy decisions of their political superiors. Those appointees, and ultimately the president, are accountable for their actions— as are the congressional leaders who raised no objection to enhanced interrogation at the time. If agents are blamed following the directives of their superiors, the CIA’s ability to protect the U.S. will be fundamentally compromised. The White House is right to stand behind Ms. Haspel—not only because she risked life and limb in the service of her country, but because of the important principles at stake. Messrs. Rivkin and Casey practice appellate and constitutional law in Washington. They served in the White House Counsel’s Office and Justice Department under Presidents Reagan and George H.W. Bush. BOOKSHELF | BY Elaine Khosrova Food History Worth Nursing Milk! By Mark Kurlansky (Bloomsbury, 385 pages, $29) F ood histories are cultural histories; they reveal much more than just what we eat. Mark Kurlansky knows this better than most, having written his greatest hits, “Cod” (1997) and “Salt” (2002), about the cultural life and times of seemingly unremarkable food staples. Now the award-winning chronicler returns with a similar lesson on a different focus: mankind’s very long and sometimes sour relationship with “the most arguedover food in human history.” “Milk! A 10,000-Year Food Fracas” is a feat of investigation, compilation and organization, given that there have been such diverse ideas about milk’s production, sale, use, safety and healthfulness world-wide. Cramming this much historical minutiae into 20 chapters can make the book feel disjointed at times, but Kurlansky fans expect and enjoy his generous narratives, chock-full of curious if occasionally digressing facts. (Who knew the CIA plotted to kill Fidel Castro by poisoning his chocolate milkshake?) Mr. Kurlansky begins by observing how strange it is that humans ingest milk at all. Thanks to an epigenetic mutation affecting digestion, he explains, we are the only mammals that consume milk past weaning. People who cannot digest dairy, the socalled lactose intolerant, do not have this genetic revision, so their milk consumption is switched off after infancy. Here the author does not frame a debate, but the facts imply one: Is drinking a glass of milk an offense to our original human design, or is it simply the “natural” result of survival through evolution? Breast-feeding versus bottle-feeding also comes up early and often in the book. In every age there have been women who, by choice or circumstance, do not nurse their babies. As a result, debates over the various substitutions have complicated this most primal act of feeding a newborn. For centuries, a wet nurse was the solution of choice for the affluent. As the author explains, this led to arguments over such matters as which of the wet nurse’s breasts provided better nourishment, whether milk quality could be predicted through hair color, whether temperament could be transferred through feeding, or whether the surrogate (often a slave) could even be trusted with the infant. Impoverished mothers who couldn’t employ a wet nurse gave their newborns animal milk, but this only spurred more debate: Which mammal’s milk was best? How should it be administered? Some chose to simply put the baby at the animal’s teat (usually a goat’s), while others favored the use of a hollowed-out horn, or a cup with a nipple-shaped bottom, or mixing the milk with a bit of old bread to spoon-feed. A rich survey of mankind’s very long and sometimes sour relationship with ‘the most argued-over food in human history.’ In the modern age, the nursing controversy became an ideological one. Equality-seeking women were encouraged to opt out of breast-feeding and use commercial baby formula. (My own mother was scorned for choosing to breast-feed in the 1960s, but she couldn’t fathom why any woman would bother sterilizing bottles and warming formula—and pay for it all—if she didn’t have to.) Experts convinced most midcentury parents that baby formula was healthier, that chemists were smarter than nature. Mr. Kurlansky unpacks the corporate marketing of infant formula to mothers and calls it an early example of “men trying to make decisions about what women should do with their bodies.” Health dilemmas constitute much of the discussion in the book, sometimes graphically. In documenting the deadly rise of “swill” milk in 19th-century America, for example, Mr. Kurlansky describes how urban dairies were often located near or inside breweries, so that their cows could feed cheaply off the “steaming brewery slop” that “flowed past them in a trough three times a day while they stood in their filth and waited for the slop to cool enough to eat.” The cows were tied to the spot, given no water and no ventilation, and kept there for the duration of their short, miserable lives. Without solid food to chew, often they lost their teeth. They were milked daily, surrendering a watery mixture that was low in fat and bluish in color. Much of it was tainted with tuberculosis bacteria (though no one recognized this microbial danger at the time). Many people, especially children, would be sickened and die from swill milk before public pressure finally forced the closure of brewery dairies and prompted government intervention. There are breezier discussions in “Milk!,” of such topics as ice-cream invention, Tibetan-butter customs, regional pudding preferences, modern Chinese dairying, milkinspired mythology and a good deal more. The author has also interspersed more than 100 historical recipes throughout the book, not necessarily for our tasting pleasure but mainly to “teach us about societies and the social order in which they were created.” (Still, the vichyssoise is heavenly.) What does not appear in the book, surprisingly, is a discussion of the convoluted and contested system of government-administered milk prices. With so many small American and European dairy farms driven out of business because of inflexible pricing regulations that distort demand and supply, such controversial economics warrant close examination. The library of food history already has two fine books on milk (an insightful page-turner by historian Deborah Valenze and the James Beard Award-nominated volume by Anne Mendelson), but Mark Kurlansky’s contribution goes further and deeper, especially in the realm of modern global and political milk developments. The book stands apart too with travel entries from the author’s firsthand probes in far-flung dairy lands. Altogether a complex and rich survey, “Milk!” is a book well worth nursing. Ms. Khosrova is the author of “Butter: A Rich History.” . THE WALL STREET JOURNAL. A16 | Tuesday, May 8, 2018 OPINION T REVIEW & OUTLOOK LETTERS TO THE EDITOR A Scarlet Title IX Letter Climate Change Shouldn’t Need a Salesman itle IX has become an unchallengeable to- A 50.1% tilt of evidence proves guilt. tem on American campuses, even as some Though this isn’t the case at UNC, many unistudents unfairly accused of sexual mis- versities appoint students as Title IX adjudicaconduct have been deprived of tors, granting them awesome A North Carolina court power before they're old due process. And now students found guilty by dubious camenough to drink or rent a car. ruling could tarnish pus courts may be publicly Title IX judges often go through young people for life. named—and their reputations “trauma-informed” training, ruined—if a North Carolina juwhich teaches that when an acdicial ruling is upheld. cuser’s testimony is inconsisThe North Carolina Court of Appeals ruled tent or contradictory, even about key details, the last month that the University of North Caro- explanation is likely emotional distress caused by lina at Chapel Hill must release the names of the sexual assault, not dishonesty. anyone “who, since January 1, 2007, has been More than 225 accused students have sued found responsible of rape, sexual assault, or any their schools over Title IX decisions and, unrelated or lesser included sexual misconduct.” der real legal scrutiny, the rulings of these uniThe case concerned public records law, not the versity kangaroo courts have sometimes crummerits of Title IX, and the appeals court’s ruling bled. There have been roughly 50 rulings is legally sound. The consequences are none- favorable to the accused students, and in many theless disturbing. other cases the universities have settled. The drama began in 2016 with a public re- Nonetheless, the North Carolina ruling opens cords request by the Daily Tar Heel student the door for the Title IX equivalent of a sexual newspaper. North Carolina’s Public Records Act offender registry. errs on the side of transparency, but it acknowlUnless UNC wins an appeal of the ruling, the edges that some records may be exempted from university will release the name, verdict and disclosure by other statutes. Citing the federal sanction for any student deemed responsible Family Education Rights and Privacy Act for sexual assault under Title IX. It gets worse. (Ferpa), UNC refused to release the names. The Ferpa prohibits the university from releasing newspaper sued. the underlying evidence, which the public could Congress passed Ferpa in 1974 to protect the use to judge the validity of the verdict. Disciprivacy of student records, but as the appeals plined students have access to their own Title court wrote there are exceptions. Notably, IX reports and could release them, but in the Ferpa permits universities to release the final court of public opinion they’ll still be guilty unresults of a disciplinary proceeding “if the insti- til they can prove their innocence. tution determines as a result of that disciplinOther North Carolina universities will also be ary proceeding that the student committed a subject to this legal precedent, but the implicaviolation of the institution’s rules or policies tions may be nationwide. The Education Departwith respect to such crime or offense.” So the ment enforces Ferpa violations. Silence from the court rightly ruled that, without such a federal Trump Administration would signal that these exemption, state law requires the release of the records are fair game nationwide. student names. The Education Department is working on The problem isn't North Carolina’s commit- new guidance for universities in handling sexment to transparency. It’s the underlying Title ual-assault and misconduct allegations, and IX policy. The Obama Administration’s 2011 Secretary Betsy DeVos has emphasized the im“Dear Colleague” guidance forced universities portance of due process. The North Carolina to establish Title IX systems in which amateurs case is well worth her attention. investigate and adjudicate alleged sexual asState lawmakers could also protect the unsaults. The accused often lack legal counsel and justly accused by passing legislation explicitly may not get the chance to present exculpatory prohibiting the release of their names. Otherevidence. Instead of “guilt beyond a reasonable wise, too many young people will begin their doubt,” the Title IX system relies on the much adult lives with the modern equivalent of a weaker “preponderance of evidence” standard. scarlet letter they don’t deserve. P Iran Wins in Lebanon resident Trump has made containing The Trump Administration seems to have adIran’s regional ambitions a cornerstone opted a see-no-evil, hear-no-evil approach reof his foreign policy, and by that mea- garding Hezbollah’s influence on Mr. Hariri and sure Sunday’s election in Lebhis government. Former SecThe election solidifies retary of State Rex Tillerson anon is a setback. Not that anyone in Washington seems visited the country in FebruHezbollah control to have noticed. ary and tried to distinguish on Israel’s border. Preliminary results indibetween Hezbollah, the tercate that Iran’s proxy Hezbolrorist organization, and Hezlah and its allies won more bollah, the political party. than half the seats in Lebanon’s 128-seat parlia- They share the same principles. Mr. Trump ment, consolidating the Shiite militia’s political compounded the confusion in April by comgrip on the country. Thanks to Lebanon’s sectar- mending “the government of Lebanon’s progian political system, Prime Minister Saad Hariri, ress” in passing a budget, deploying Lebanese a Sunni, will likely keep his job, but his clout will Armed Forces (LAF) on the Syrian border and be considerably weakened given the clobbering fighting Islamic State. The LAF is outmanned his Future Movement took at the polls. and outgunned by Hezbollah. Voter turnout fell five percentage points Lebanon has more strategic importance than from the 2009 election, mostly because Leba- its small size because it abuts Israel and serves nese citizens didn’t have much of a choice be- Iran’s interests. Iran is using Hezbollah to build tween Hezbollah and Hezbollah-lite. Mr. Hariri up a second front in southern Syria for launchthrew his lot in with the terror group when he ing missiles into the Jewish state during the accepted a power-sharing arrangement in 2016 next, inevitable war. Mr. Trump is poised to anwith former general Michel Aoun, a Hezbollah nounce his decision on the Iran nuclear deal as ally, to break a political stalemate. The country early as Tuesday, but he also needs a larger conis overwhelmed with Syrian refugees and its tainment strategy that treats Lebanon with economy is stagnating. more than naive neglect. M Mr. Najib and Mr. Trump alaysians go to the polls on Wednes- Malaysians were unaware of the details and day, and in a normal democracy the heard only Mr. Najib’s denials. ruling coalition of Prime Minister NaBut the scandal divided the UMNO elite, with jib Razak would lose in a rout several high-ranking officials The Malaysian amid scandals and widespread leaving the party, including defections. But the latest pollformer Finance Minister Tun strongman has played ing suggests the opposition in Daim Zainuddin. Former this important Southeast U.S. Presidents for fools. Prime Minister Mahathir MoAsian nation will again win hamad even joined the opposithe popular vote but fall short tion coalition as its leader and of a parliamentary majority. has spread word of the missing money to the This would be a repeat of the 2013 election, grassroots. He has also helped ethnic Malays after which Mr. Najib carried on as Prime Minis- overcome their mistrust of the opposition that ter and the leader of the ruling United Malays includes ethnic Chinese. National Organization, or UMNO. The result Malaysia’s government clearly needs a would show how much Mr. Najib and his party housecleaning, and a growing share of its citihave corrupted Malaysia’s democracy with ger- zens agree. Mr. Najib took office as a modernrymandered districts, control of the media, and izer and reformer in 2009, promising to abolish race-based demagoguery. repressive colonial-era laws as well as racial In 2015 this newspaper broke the news that preferences that benefit ethnic Malays. But nearly $700 million from the state-owned in- amid the scandals he has fallen back on the old vestment fund 1MDB transited through Mr. Na- UMNO model of political patronage and harassjib’s personal bank accounts. He said the money ment of critics in media and politics. The main was a legal political donation from a Saudi royal opposition leader, Anwar Ibrahim, was jailed on and that most of it was returned. Malaysia’s At- trumped-up sodomy charges. torney General cleared him of wrongdoing, and Mr. Najib has also been adept at manipulatno charges have been brought in Malaysia. ing American Presidents. Barack Obama inThat didn’t stop six nations from investigat- dulged him in a round of golf in Hawaii in 2014 ing the laundering of $4.5 billion allegedly em- that became a useful photo-op in Kuala Lumpur. bezzled from 1MDB. The U.S. Department of President Trump also got played when he inJustice filed civil lawsuits to freeze more than vited Mr. Najib to the White House last year and $1.6 billion of assets, much of which was held praised him despite the “Malaysian Official No. by the friends and family of “Malaysian Official 1” reference in the Justice lawsuit. No. 1.” U.S. officials have told the Journal that None of this helps American interests. If Mr. Official No. 1 refers to Mr. Najib. Najib wins again, he is likely to crack down furInitially the 1MDB case did not shake support ther on civil liberties and continue his trend of for Mr. Najib and UMNO among rural Malays, appeasing China’s expansion in the South China who hold the balance of power in elections. Sea. Mr. Trump shouldn’t let himself be played Government control over the media meant most for a fool again. Stewart Easterby is obsessed with the idea that a good salesman can sell anything (“Climate Activists Are Lousy Salesmen,” op-ed, April 26). The fact, however, is that a good product helps, and an acceptable product is necessary. A “climate scientist” is defined as someone with scientific credentials who is necessarily funded by a climate agency. Since research that might refute the consensus isn’t funded, the “vote” of climate scientists is biased. Any scientist knows that a model or theory that makes predictions at variance with observations has no credibility. The switch from “global warming” to “climate change” isn’t purely rhetorical but reflects the observation that warming didn’t occur as the models said. Better salesmanship of an inferior product is hucksterism and fraud. EM. PROF. STUART L. MEYER Northwestern University Chicago One reason for public skepticism regarding climate-research integrity is a sense that the climate-change complex is fully dependent on direct or indirect (through academic institutions) government funding that increases in line with projected increases in global temperatures. Climate activists have a conniption when research is funded in part by corporations that have a stake in fossil fuels, but funding of activists and scientists is similarly tainted by government gushers of cash when projections confirm dire climate outcomes that justify greater public spending. If climate activists heed Mr. Easterby’s advice and stop boiling in oil anyone who challenges their rationale or disagrees with their policy agenda, they may increase public confidence in the integrity of climate science. TOM WEST Raleigh, N.C. If humanity were truly endangered, you would think we would be hearing drumbeats for genuine sacrifice: energy rationing, banning air conditioning, not owning large homes but rapidly expanding nuclear energy capacity despite the well-known risks. Instead, we get the nonbinding Paris Agreement, inadequate to the task at best, but now being broken by nearly all the signatories. At home we are mainly encouraged to drive electric cars and adjust the thermostat a few degrees. If the environmentalists continue to play patty-cake with global warming, people are justified in not taking the crisis seriously. One wonders if there might be other motives in play. THERON SMITH McLean, Va. If global warming is so bad, why is everyone from the Northeast and Midwest moving to the Sunbelt? THOMAS FERGUSON New Canaan, Conn. Regulation Won’t Help Internet Free Speech Mark Epstein’s “How To Keep Online Speech Free” (op-ed, April 30) highlights many of the tensions internet companies face in balancing the demands of creating safe online communities and protecting their users’ constitutional rights. What one person may consider abusive or hateful content could be speech protected under the First Amendment. All the while tech companies are stuck in the middle and use a mix of artificial intelligence and human review to get it right. Tech companies are expected, fairly, to police a lot of content and, unfairly, to be perfect at it in the eyes of all audiences. Tech companies want to get it right and that’s why they’re taking additional steps to be transparent about the guidelines, community standards and enforcement policies they consider when the public asks for content to be removed or left untouched. These are admittedly tough decisions that sometimes vary based on the social norms in any community or given country. But we’re able to have this debate because tech companies remain responsive to consumer demands and share the ideal of democratizing information. I challenge you to find another industry more willing to change its practices on a global scale or respond to consumers. For those calling for more regulations on the way tech companies police content, let’s not forget how difficult the balance is and the consequences of limiting speech in a global, often undemocratic, world. MICHAEL BECKERMAN President and CEO The Internet Association Washington Total Investment, Total Saving and Deficits Jason Furman rightly calls for reduced U.S. government budget deficits (“Deficit—Worry About the Trade a Bit,” op-ed, May 2). And although he’s also right to try to calm fears about U.S. trade deficits, Mr. Furman undermines his case by committing a dangerous, if common, error when he writes: “The current-account deficit is the gap between total investment and total savings. If a country saves less money than it puts toward things like factories and equipment, it has to finance the difference with foreign borrowing.” It is simply untrue that the difference between total investment in the U.S. and total savings in the U.S. must be financed with borrowed funds. When Sony opens a store in Dallas, when IKEA refurbishes a store in Denver, when BMW builds a factory in South Carolina, when Spaniards buy shares of Apple on the NYSE, when Koreans expand their dollar holdings, when Canadians purchase real estate in Michigan they contribute to total investment in the U.S. exceeding Americans’ savings (that is, to larger U.S. current-account deficits). Yet none of these foreign investments involves American borrowing. None increases Americans’ indebtedness. Not one of these outlays puts any American on the hook to repay anything to anyone. Yet by following the common practice of labeling every cent of currentaccount deficits as “borrowed” funds, Mr. Furman unwittingly gives ammunition to the Trump administration and others who peddle protectionism by stirring up unwarranted fears of trade deficits. PROF. DONALD J. BOUDREAUX George Mason University Fairfax, Va. Dems Shouldn’t Let Nutmeg State Crisis Go to Waste I agree with Gordon Hartwig’s rationale for staying in California amid the mass exodus to Texas. In his April 30 letter he suggests a wild and harsh land filled with dangerous critters. He fails to mention our sizable alligator population, roving mountain lions, tornadoes and flash floods. We Texans call on Mr. Hartwig and other Californians thinking of moving to Texas to stay in California in the name of safety. JOE C. FREEMAN West Lake Hills, Texas I just read your editorial “The Regressive State of America” (April 26) on Connecticut’s lack of per capita income growth. It would have been interesting to see if there was growth for government employees as a separate category. Gov. Dannel Malloy’s failure to revive Connecticut’s economy makes him a strong candidate in the Democratic Party for president in the near future. After all, Maryland’s Martin O’Malley was mayor of Baltimore, failed to make it a better city and was elected governor where he did a similar lousy job. He was one of the last three Democratic Party candidates for president in 2016. FRANK HIGBIE Bound Brook, N.J. Avoid the Texas Alligators And Stay in Golden State Pepper ... And Salt THE WALL STREET JOURNAL CORRECTION Damien Jurado’s new album is “The Horizon Just Laughed.” A Thursday Arts in Review story, “Comfort Tunes,” misspelled his name. Letters intended for publication should be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, or emailed to firstname.lastname@example.org. Please include your city and state. All letters are subject to editing, and unpublished letters can be neither acknowledged nor returned. “It’s part of my transparency policy.” . THE WALL STREET JOURNAL. Tuesday, May 8, 2018 | A17 OPINION Can a Judge Solve the Opioid Crisis? W hat began as a single opioid lawsuit in Ohio is now the only such case that matters. Every significant opioid lawsuit in the U.S. has been lumped together into a giant case before one federal judge in Cleveland who has declared his extraordinary ambition to “solve” the crisis in 2018. Judge Dan Polster is bringing before him all the major companies involved, including drug manufacturers like Purdue Pharma, distributors like McKesson and retailers like CVS. Thanks to multidistrict litigation, a Clevelandbased jurist may set drug policy nationwide. Other parties swept into Cleveland— some of which haven’t even sued yet—include the Justice Department, several Native American tribes, more than 40 states, and hundreds of counties, cities and people. New cases will continue to be added. The judge has made clear that he doesn’t plan to bring hundreds of cases to trial. Instead he wants a policy solution: a comprehensive settlement that covers everyone involved in the opioid crisis, even those who never filed any lawsuit. Yes, this kind of arrangement is legal. It is also increasingly common. Multidistrict litigation cases, or MDLs, have become the court system’s tool of choice for handling high-profile harm caused by national companies. MDLs have been deployed in recent years to address the NFL’s concussions, General Motors’s ignition-switch woes, and BP’s oil spill. A ruling is expected any day on whether the Facebook privacy breaches will become an MDL too. One reason for the rising popularity of MDLs is that a series of Supreme Court rulings over the past two decades have made it more difficult to bring classaction lawsuits. MDLs provide an alternative. Instead of consolidating plaintiffs into a “class” so they can file a single lawsuit, a slew of similar plaintiffs from different jurisdictions file separately. MDLs allow those cases to be grouped together before a court and resolved simultaneously. Some MDLs even bundle class actions together into a single megalitigation. To some observers, this arrangement seems lawless or even undemocratic. Judges presiding over MDLs are not bound by special rules. They often have a cowboy-onthe-frontier mentality, trying singlehandedly to address cases involving intractable problems and enormous numbers of actors. MDL defendants may insist on reaching a “global settlement”—one that covers all the cases against them, even those not actually before the MDL court. That gives the judge an unusual amount of leverage. Unlike class actions, MDLs do not even aim toward trial. The law that authorizes them says they may resolve only pretrial issues. The original idea was that individual cases would return home for trial after the MDL. But today the process is resolved in MDL court 97% of the time. Pretrial issues are usually not subject to review by higher courts, giving the MDL judge still more power. fees rather than zealous advocacy for results, especially because everyone knows the cases are not going to trial. The special process for consolidating similar cases from different jurisdictions was set up by Congress in 1968 to accommodate a rash of antitrust litigation against electricalequipment manufacturers. But the centrality of this process to modern litigation tends to shock even experienced lawyers. On the federal docket, 39% of open cases are part of one MDL or another. The staggering scale of the opioid proceedings now underway in Cleveland demonstrates that America’s federal system for civil litigation is in some respects outdated. It was built before the modern national economy and is designed to process small numbers of claims in individual states. Today, companies aim products at the U.S. market as a whole, meaning parallel harms can be inflicted on different kinds of parties from Anchorage to Orlando. The MDL has emerged as an unorthodox mechanism to overcome the court system’s anachronisms. If it makes the public uncomfortable, Congress or the courts can formalize new rules for the presiding judges, or else rethink civil litigation to align with the realities of the modern business world. Otherwise single judges, crafting their own rules, will continue to be tasked with resolving some of the most vexing conflicts in America. GRANT ROBERTSON By Abbe R. Gluck Judge Polster captured the scope of his ambitions in a January hearing on the opioid cases: “What I’m interested in doing is not just moving money around, because this is an ongoing crisis. What we’ve got to do is dramatically reduce the number of the pills that are out there and make sure that the pills that are out there are being used properly. . . . We don’t need a lot of briefs and we don’t need trials. . . . None of those are going to solve what we’ve got.” Is a federal courtroom, presided over by a single judge, a better forum for making policy than 50 state legislatures or Congress? Judge Polster said courts have to step up because legislators have not done enough. Moreover, many plaintiffs in cases like the opioid and Facebook matters might never have access to justice without a way to aggregate their claims. Trying so many similar suits individually would take forever, and many lawyers would not even take on their cases. Judge Polster has been unusually open about his desire to arrive at a settlement, but almost all MDL judges get creative. Cases become big MDLs because they involve an intractable mess of issues—in this case, differing state laws and a range of defendants and harms. That complexity is often what makes them unsuitable as class actions in the Supreme Court’s view. MDL judges can use unconventional processes to drive settlements. That freedom may bring needed relief to plaintiffs, but it also creates risks. A judge has more potential leeway to abuse power. And the MDL bar is a small, specialized group of lawyers; some worry the chummy relationships among counsel may lead to quick settlement for Ms. Gluck is a professor of law and faculty director of the Solomon Center for Health Law and Policy at Yale Law School. Kanye Had One of the Best Tweets of All Time By Jason Whitlock A fter a nearly yearlong socialmedia hiatus, polarizing rap star Kanye West re-emerged on Twitter last month. On April 25 he shocked the mainstream media by expressing admiration for President Donald Trump. “You don’t have to agree with trump but the mob can’t make me not love him,” Mr. West tweeted. “We are both dragon energy. He is my brother. I love everyone. I don’t agree with everything anyone does. That’s what makes us individuals. And we have the right to independent thought.” The tweet heard round the internet pleased America’s Twitter-loving president, who promptly thanked the rapper. It had a much different effect on liberal elites. Mr. West’s tweet and his other missives supporting center-right figures like Candace Owens and Scott Adams constituted left-wing betrayal of the highest order. The man who once vilified George W. Bush for the slow response to Hurricane Katrina was joining the birther president? Rep. Maxine Waters (D., Calif.) bashed Mr. West for speaking “out of turn.” Mr. West shared over Twitter text messages from singer John Legend scolding him for aligning with President Trump. “Don’t let this be a part of your legacy,” implored Mr. Legend. The Atlantic’s Ta-Nehisi Coates even spent 5,000 words admonishing Mr. West for straying too far from his betters’ thinking. Last week, when Mr. West flippantly and foolishly ascribed blame for American slavery on AfricanAmericans during a TMZ interview, he provided his critics the out they needed to dismiss him. But Mr. West’s larger point should not be rejected because bravado caused him to suggest he would’ve chosen death over slavery. Should we also now discard his criticism of President Bush? Liberals loved that. But they now fear what Mr. West is attempting to credibly convey to black people. It’s a message that could devastate the Democratic Party. Liberalism is black people’s cigarette. In the immediate aftermath of the civil-rights movement, Democrats marketed liberalism to us as fashionable, sophisticated and liberating. Today it needs a surgeon general’s warning: hazardous to your family and the values you were taught as a child. Martin Luther King Jr. was a Southern, conservative minister who believed in the American promise. His dream was patriotic and traditional. Family, work, self-determination and religion comprised his core values. He never demonized his enemies. He chose to shame them by being better. Maxine Waters said the rapper spoke ‘out of turn’ by praising Trump, but he affirmed his freedom. The turbulent and assassinationscarred 1960s created an acute leadership void in black America. The Democratic Party capitalized by promising black people government dependency disguised as assistance. The welfare check, the replacement for black fathers, is liberalism’s nicotine. Hollywood celebrities were once deployed by advertising companies to make smoking seem cool; today, they are deployed by liberal interest groups to make progressive politics seem like the only solution to black people’s problems. Since King’s death, liberalism has increasingly become our religion and the Democratic Party our church. The rewards for our allegiance are at best disappointing: Our families have disintegrated. Our men have been incarcerated and emasculated. Our communities have been abandoned by high achievers. And our children are confused and resentful of their elders. In 1965, the Moynihan report sounded alarm because only 76% of black children were born to married women. By 2015, 77% of nonimmigrant black children were born to single mothers, according to the National Center for Health Statistics. Major cities such as Baltimore and Detroit—run almost exclusively by black Democrats—remain crime-ridden and economically challenged, especially for black residents. Perhaps this can be attributed to the evil work of conservative Republican politicians at the federal level. Or maybe we, African-Americans, have chosen the wrong strategy. No other ethnic group is chained to a single political ideology. Hispanics, whites and Asians actually make political parties compete for their support. Maybe Mr. West is trying to warn us of the dangers of Democratic cigarette addiction? On April 18 he tweeted: “Don’t follow crowds. Follow the innate feelings inside of you. Do what you feel not what you think. Thoughts have been placed in our heads to make everyone assimilate. Follow what you feel.” On April 22: “there was a time when slavery was the trend and apparently that time is still upon us. But now it’s a mentality.” On April 23: “new ideas will no longer be condemned by the masses. We are on the frontier of massive change. Starting from breaking out of our mental prisons.” Here’s the tweet just before his now infamous President Trump tweet: “Free thinkers don’t fear retaliation for your thoughts. The traditional thinkers are only using thoughts and words but they are in a mental prison. You are free. You’ve already won. Feel energized. Move in love not fear. Be afraid of nothing.” Black people have no reason to fear political free agency. Mr. Whitlock is a co-host of “Speak for Yourself” on Fox Sports 1. Where Does the Law Against Kickbacks Not Apply? Your Hospital By Phillip L. Zweig And Frederick C. Blum D octors have long struggled to care for patients amid artificial shortages of, and soaring prices for, hundreds of drugs—notably generic sterile injectable products, including saline, epinephrine, chemotherapeutic agents, anesthetics, painkillers, antibiotics, even sterilized water. So when Amazon Business signaled last year that it planned to infuse competition into the marketplace for hospital supplies, clinicians were optimistic that scarce items would soon reappear. Wrong. Mighty Amazon has now backed away from the market. CNBC, which reported the news in April, attributed the decision partly to the barrier posed by hospitals’ tight relationships with group purchasing organizations, or GPOs. Amazon achieved its remarkable success by building a sophisticated ecommerce platform that promotes competition, transparency and low prices. In contrast, the GPO industry, which supplies doctors with hundreds of billions in medical products each year, rests on myriad conflicts of interest. The result is not only shortages but higher prices. Four giant GPOs—Vizient, Premier Inc., HealthTrust and Intalere—control purchasing for most of the supplies used by thousands of hospitals, outpatient clinics and nursing homes. These buying cartels literally sell market share, taking money from drugmakers and other vendors in exchange for exclusionary supply contracts. Hospitals sometimes even get a cut 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; 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: 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 William Lewis Chief Executive Officer and Publisher DOW JONES MANAGEMENT: Mark Musgrave, Chief People Officer; Edward Roussel, Chief Innovation Officer; Anna Sedgley, Chief Operating Officer OPERATING EXECUTIVES: Ramin Beheshti, Product & Technology; Kenneth Breen, Commercial; Jason P. Conti, General Counsel; Frank Filippo, Print Products & Services; Steve Grycuk, Customer Service; Kristin Heitmann, Chief Commercial Officer; Nancy McNeill, Advertising & Corporate Sales; Christina Van Tassell, Chief Financial Officer; Suzi Watford, Chief Marketing Officer; Jonathan Wright, International DJ Media Group: Almar Latour, Publisher Professional Information Business: Christopher Lloyd, Head; Ingrid Verschuren, Deputy Head of the GPOs’ fees. The industry is very secretive, but when Premier was considering an initial public offering in 2013, Thomas Finn, an analyst at HCMatters.com, explained: “As a member-driven enterprise, it is common knowledge that Premier and other GPOs ‘share back’ with their members and owners. In fact, many hospital executives who are part of the Premier alliance have learned to rely on that share back as an integral part of their annual compensation.” In turn, GPOs primarily use three big “authorized distributors”: McKesson, AmerisourceBergen and Cardinal Health. The supply chain is set up so that only authorized distributors, which pay fees to the GPOs, are entitled to manufacturers’ rebates for products covered by the contracts. Since smaller wholesalers can’t get the rebates, they’re effectively frozen out. The results of this anticompetitive system are higher costs and inevitable supply breakdowns. For example, the GPOs would have the public believe that Hurricane Maria triggered shortages of sterile IV solutions by damaging Baxter International’s Puerto Rican plants. In fact, shortages of saline and other solutions have existed for years, forcing the U.S. to import them from several countries. The deeper reason is that GPOs have relied almost exclusively on Baxter for these products, concentrating production and discouraging potential competitors. Although information on contract terms is confidential, a Baxter press release touting a 2007 deal with Novation (now Vizient) describes the terms as “an extended single source award for IV solutions.” What’s more, the fees that manufacturers pay to GPOs can be exorbitant, as demonstrated during a 2003 federal whistleblower case filed by a former employee of Novation. Documents in the case showed that in 1998 Ben Venue Laboratories, an Ohio company that produced the heart medication diltiazem, paid GPO fees that exceeded half its sales on the drug. The case was eventually settled. Ben Venue shut down after failing FDA inspections in 2011, making supplies of its products even tighter. The medical supply chain is a conflicted mess, and revoking its ‘safe harbor’ would save patients money. GPOs didn’t always operate this way. The first was founded in 1910 when several New York City hospitals banded together to buy supplies in bulk. Members paid dues to cover administrative expenses. This nonprofit “co-op” model worked for decades. What perverted the system was a rule that began to allow cash to flow from manufacturers to the GPOs. In the mid-1980s, Congress gave GPOs a “safe harbor” by exempting them from the laws against taking kickbacks from suppliers. A 2010 report by the Senate Finance Committee found no independent empirical evidence that GPOs save hospitals money. In 2002, however, the Government Accountability Office studied purchases of safety needles and pacemakers in one metropolitan area and found hospitals that negotiated on their own often obtained lower prices. Our estimate, based on accumulated evidence including interviews with former GPO contracting officers, is that the current system may inflate costs by 30% or more. Still, most administrators are enculturated to the GPO system, and the web of rebates and fees helps keep it in place. Making matters worse, in 2003 the Department of Health and Human Services advised drug makers that the safe harbor would protect rebates paid to pharmacy benefit managers. This has created an upward spiral in the cost of drugs sold through these middlemen, as drugmakers compete for placement on PBM formularies by offering ever-larger rebates. Without Amazon, the best hope for ending this travesty remains congressional repeal of the safe harbor. That goal has long eluded the bipartisan handful of lawmakers who have endorsed the idea, but thankfully outrage is mounting. The 36,000-member American College of Emergency Physicians adopted a resolution last year calling for repeal. Just last week, the commissioner of the Food and Drug Administration, Scott Gottlieb, suggested re-examining the safe harbor as a way to disrupt the system of drug rebates “that’s driving higher and higher list prices.” If Washington is truly interested in lowering medical costs, here’s a straightforward idea: cancel the safe harbor and force the middlemen feeding at the health-care trough to compete on the merits. Mr. Zweig, a former Journal reporter, is executive director of Physicians Against Drug Shortages (PADS). Dr. Blum is an associate professor at the West Virginia University School of Medicine, a past president of the American College of Emergency Physicians, and a co-chair of PADS. . THE WALL STREET JOURNAL. A18 | Tuesday, May 8, 2018 Gold Metal SM ® Mastercard Gold Card TM 24K-Gold-Plated Metal Card Apply now at luxurycard.com or call 844.LUX.CARD. . TECHNOLOGY: H&M TAPS AI TO WIN BACK CUSTOMERS B4 BUSINESS & FINANCE © 2018 Dow Jones & Company. All Rights Reserved. S&P 2672.63 À 0.35% S&P FIN À 0.68% * * * ** S&P IT À 0.79% Tuesday, May 8, 2018 | B1 THE WALL STREET JOURNAL. DJ TRANS g 0.08% WSJ $ IDX À 0.20% LIBOR 3M 2.369 NIKKEI (Midday) 22536.42 À 0.31% Comcast Readies Fox War Chest BY AMOL SHARMA Cable giant Comcast Corp. is getting the pieces in place to make a hostile bid for 21st Century Fox Inc.’s entertainment assets should it choose HEARD ON THE STREET By Dan Gallagher to do so, according to people familiar with the situation. Fox agreed in December to sell the assets in question to Walt Disney Co. for $52.4 billion in stock. Comcast is considering making a play to break up that deal and has lined up around $60 billion in financing to make an all-cash offer for the Fox assets, the people say. Comcast hasn’t yet decided whether to proceed with a INSIDE WALMART SETS $15 BILLION PUSH IN INDIA E-COMMERCE, B3 nounce his ruling on June 12. The assets Comcast and Disney are seeking to purchase include the Twentieth Century Fox TV and film studio, cable networks and international properties including Fox’s 39% stake in European pay TV operator Sky PLC. Separately, on another track, Comcast and Fox are each vying for full control of Sky and have lobbed in bids. Comcast is securing financing from banks that would allow it to pursue a bid for the Fox entertainment assets and consolidate 100% ownership of Sky, the people familiar with the situation said. Reuters earlier reported that Comcast was asking banks to arrange financing that would give it the ability to pursue an all-cash bid for the Fox assets. Comcast has circled the Fox Please see FOX page B5 Crude Rally Boosts Energy Firms but Leaves Consumers Vulnerable $100 Videogame Titans Face New Player It takes more than a “Fortnite” to shoot down “Call of Duty.” But what happens when even more bullets start flying? Investors had been worried that the runaway videogame hit from independent developer Epic Games would hurt franchise properties from publishers such as Activision Blizzard, Take-Two Interactive and Electronic Arts. But first-quarter results from Activision last week suggest that established games are a bit more resilient. That also bodes well for Take-Two, whose “Grand Theft Auto” franchise was also thought to be vulnerable, as well as Electronic Arts. All three stocks jumped Friday following Activision’s report. But competition in the shooter category of videogames is only loading up. The coming fall season will see not only a new “Call of Duty” installment from Activision, but also a new “Battlefield” from EA as well as “Red Dead Redemption 2.” The latter is the first sequel to a surprise blockbuster put out in 2010 by Take-Two’s highly regarded development partner Rockstar Games. And those games will still be competing against “Fortnite,” whose popularity is showing no signs of slowing, as well as “PlayerUnknown’s Battlegrounds,” another recent hit. The big question that remains is whether “Fortnite” has truly expanded the market. The game has popularPlease see HEARD page B2 hostile bid. One pivotal factor is the outcome of the government’s lawsuit to stop the pending merger of AT&T Inc. and Time Warner Inc. If the companies are successful and their deal survives, Comcast would be emboldened to pursue the Fox assets, the people said. Arguments in the antitrust case against the deal concluded last week, with the judge saying he would an- U.S. oil prices returned this week to $70 for the ﬁrst time since their 2014 collapse, revived by a host of global economic and political factors. 80 60 40 U.S. crude-oil futures, front-month contract Monday $70.73 a barrel 20 0 2014 ’15 ’16 ’17 ’18 Rising U.S. oil exports limit the pain of higher crude prices, which help producers... ...though higher fuel prices tend to hit consumers, including airlines and car ﬁrms. U.S. crude-oil exports, reported weekly Average U.S. gasoline price Share-price performance, year to date 2 million barrels a day $4 a gallon 1 0 2014 ’15 ’16 Share-price performance, year to date ’17 Anadarko Petroleum 23.0% Pioneer Natural Resources 13.3 EOG Resources 5.5 3 2 –11.3% General Motors –7.3 Delta Air Lines –2.6 FedEx 1 0 ’18 2014 ’15 ’16 ’17 ’18 THE WALL STREET JOURNAL. Sources: WSJ Market Data Group (crude price); EIA (exports, gas price); FactSet (share performance) Refiners have been among the best-performing stocks in 2018, but higher prices could hurt transportation firms and auto makers. B11 Deputies Increasingly Run Berkshire BY NICOLE FRIEDMAN OMAHA, Neb.—Warren Buffett is still the face of Berkshire Hathaway Inc., but behind the scenes, his deputies are frequently calling the shots. At Berkshire’s annual meeting over the weekend, Mr. Buffett said four executives— Greg Abel, Ajit Jain, Ted Weschler and Todd Combs— are already handling many of the day-to-day responsibilities of running Berkshire. Mr. Buffett remains chairman, chief executive and chief investment officer, but “‘semiretired’ probably catches me at my most active point,” he joked in front of thousands of shareholders at the CenturyLink Center in Omaha, Neb., on Saturday. In January, Mr. Buffett promoted Messrs. Jain and Abel to vice chairmen. The managers of Berkshire’s 60-odd businesses now report to one of the two executives, not to Mr. Buffett. In interviews over the weekend, several Berkshire subsidiary CEOs said the new leaders have touched base, though they see little change, especially because both men were promoted from within the company and understand DAVID WILLIAMS/BLOOMBERG NEWS Firm lines up financing for hostile bid for assets but hasn’t decided to go ahead A subsidiary’s booth at the company’s annual meeting its culture. By starting the management transition while he is still in charge, Mr. Buffett hopes to instill shareholder confidence in the next generation of Berkshire leaders, said Thomas Russo, partner at Gardner Russo & Gardner, a longtime holder of Berkshire shares. “This is a very serious transitional year,” Mr. Russo said. On Mr. Buffett’s part, “I think there’s a real sense of willing- ness to let go of things.” Messrs. Jain, Abel and Combs didn’t respond to requests for comment, and Mr. Weschler declined to comment. Since taking over the vice chairman role in January, Mr. Abel has spent time speaking with his new direct reports and visiting the headquarters of some Berkshire companies. Mr. Abel “will get a bit more engaged in some of the details that Warren just didn’t have time for,” said Eric Schnur, CEO of Berkshire chemical company Lubrizol, which Mr. Abel visited last month. Like many Berkshire businesses, Ohio-based Lubrizol doesn’t have a traditional board, Mr. Schnur said. Mr. Abel is “another set of eyes to give us some ideas.” Mr. Buffett, who is 87 years old, has said for years that he would run Berkshire as long as he is able. Since he took over Berkshire in 1964, the firm has grown into a sprawling conglomerate with businesses as diverse as aerospace manufacturing, fast food and real estate. Mr. Buffett partly attributes Berkshire’s success to its decentralized culture. While some managers are in frequent Please see BUFFETT page B2 Activist Elliott Bids for Software Firm BY CARA LOMBARDO AND ALLISON PRANG REPUBLICAN TO EXIT AT SEC REGULATION, B10 Activist investor Elliott Management Corp. is pushing to take Athenahealth Inc. private, arguing the health-care software company is botching an opportunity to expand and, as a result, isn’t providing adequate returns to shareholders. Elliott, which has an 8.9% stake in Athenahealth, offered on Monday to buy the remain- der of the company for $160 a share, a 27% premium to its Friday closing price. The offer values the entire company at about $6.5 billion “It is clear to us and becoming clear to many others that Athenahealth’s potential will never be realized without the kind of operational change that the company seems unable to deliver,” Elliott said in a letter. Athenahealth said it received the unsolicited bid and is reviewing it. Shares of the company rose 16% to $146.75 on Monday; they had previously been down for the year. Elliott believes Athenahealth should be more aggressively selling its cloud-based software to hospitals and better competing with Cerner Corp. and Epic Systems Corp., according to people familiar with the investment. Elliott thinks Athenahealth could eventually be purchased by a strategic buyer such as Cerner, the people said. A Cerner spokesman didn’t respond to a request for comment. Elliott said it had approached Athenahealth in November about going private, but the company didn’t engage. The activist added that it “may also be able to substantially improve the proposed price with additional, private diligence.” Please see ELLIOTT page B2 See more at WSJMarkets.com Nestlé, Starbucks Blend Strategy BY BRIAN BLACKSTONE AND JULIE JARGON Starbucks Corp. is betting its future on its coffee shops. To do that, the Seattlebased company has removed a distraction by selling the rights to offer its coffee and tea in grocery and retail stores to Nestlé SA for more than $7 billion. Coffee sellers from Dunkin’ Brands Group Inc. to McDonald’s Corp. have crowded supermarket shelves with branded bags of ground and roasted beans. Starbucks products will give Switzerland-based Nestlé a bigger stake in that fight without having to introduce a new brand to U.S. consumers. For Starbucks, the consumer packaged-goods business generated $1.8 billion in revenue in fiscal 2017, just 8% of Starbucks’s total. “While consumer packaged goods is an important and highly profitable business, it’s small,” said Michael Schaefer, head of Euromonitor’s global food and beverage practice. Sales have been slowing at Starbucks coffee shops in the U.S. as mall traffic declines and competition increases. Starbucks has opened higherend stores under brands called Roastery and Reserve to compete with independent coffee shops and small chains that have grabbed sales from customers willing to pay more for specialty drinks and pastries. There are nearly 33,000 coffee shops in the U.S., according to market-research firm Mintel, up 16% from five years ago. Starbucks also wants to open more coffee shops in China, a market the Seattlebased company said will eventually overtake the U.S. as its largest. The company recently opened its first Roastery store in Shanghai. Retail operations in the U.S. and China “are our two big growth engines,” Starbucks Chief Executive Kevin Johnson told investors on a call about the deal Monday. Starbucks has dropped other ancillary businesses recently to focus on its coffee shops. Last fall, Starbucks sold its Tazo tea brand to Unilever for $384 million. The company recently closed its mall-based Teavana tea stores because of weak traffic. Starbucks has dropped other businesses to focus on its coffee shops. Starbucks shares fell 23 cents to $57.45 on Monday. Nestlé stock rose 1.6%. The deal gives Starbucks an upfront infusion of cash that it plans to return to shareholders through share buybacks. Starbucks said it planned to give $20 billion to shareholders over three years in buybacks and dividends. That might assuage some shareholder concerns as Starbucks works to boost sales growth. Nestlé said it would pay Starbucks $7.15 billion as well as continuing royalties on all sales. Mr. Johnson said the partnership will raise familiarity with the Starbucks brand by getting its ground and whole bean coffee into international markets where it isn’t currently sold. Nestlé hopes more coffee sales can offset flagging sales of some of its other packagedfood businesses. As part of the Starbucks deal, Nestlé will add Starbucks Reserve, Seattle’s Best Coffee and Teavana to a portfolio that includes the Please see NESTLE page B2 Heard on the Street: Serving up a bold coffee combo..... B12 . B2 | Tuesday, May 8, 2018 INDEX TO BUSINESSES BUSINESS & FINANCE A B Baird Core Plus Bond Fund..........................A2 Baird Core Plus Bond Fund............................... Bank of America.......B10 Bausch & Lomb...........B2 Bayer...........................B6 Beijing Shouhuan Cultural Tourism.......B5 Berkshire Hathaway...B1 BHP Billiton..............B12 Boeing ....................... B12 C Caterpillar ................. B12 CEFC China Energy...B12 Citigroup..............A1,B10 Comcast.................B1,B5 Commonwealth Bank of Australia.................B10 Cowen........................B10 D-E Deloitte Touche Tohmatsu..................B6 Dunkin' Brands Group B1 eBay.............................B3 Electronic Arts............B1 Elliott Management ... B1 Epic Games ................. B1 Evercore.....................B10 Nestlé...................B1,B12 F R Facebook......................B4 Ferrero International..B2 Fiat Chrysler...............A2 Flipkart........................B3 Ford Motor .......... A2,B12 Frutarom Industries ... B3 G Gap .............................. B4 General Motors...........A2 Glencore .................... B12 Goldman Sachs.........B10 Grab.............................B4 Greenwich Assoc......B10 H-I Harley-Davidson ....... B12 Hennes & Mauritz......B4 Inditex.........................B4 International Flavors & Fragrances.................B3 J-K JAB Holdings.......B2,B12 Jefferies Group.........B10 JPMorgan Chase..B2,B10 Kindred Biosciences..B12 M McDonald's..................B1 MediaTek.....................B4 Microsoft.....................B3 Monsanto....................B6 Morgan Stanley........B10 P PepsiCo........................B2 Piper Jaffray.............B10 Raymond James ....... B10 Rio Tinto ................... B12 Rosneft Oil................B12 S Samsung Securities . B11 Sky...............................B1 Sonos...........................B4 Starbucks.............B1,B12 Stifel Financial..........B10 T Take-Two Interactive..B1 Tencent Holdings........B3 Time Warner...............B1 Twitter ........................ B4 21st Century Fox........B1 Tyson Foods................B6 U Uber Technologies ...... B4 Unilever..................B1,B3 United Continental.....B3 United Rusal.............B12 V Valeant Pharma..........B2 Valero Energy ........... B11 ValueAct Capital.........A1 W N Walmart......................B3 Walt Disney...........B1,B5 Westpac Banking......B10 Whirlpool...................B12 Woodbridge Group....A10 National Australia Bank ...................................B10 ZTE..............................B4 Z INDEX TO PEOPLE B Greenleaf, Graham......B4 Buffett, Warren..........B1 Bush, Jonathan...........B2 C Cavanagh, Michael......B5 Chin, Richard.............B12 Clayton, Jay .............. B10 Corbat, Michael .......... A1 Croft, Helima ............ B11 D Deripaska, Oleg.........B12 Donofrio, Paul...........B10 Duplass, Jay..............A11 Duplass, Mark...........A11 E Elliott, Shayne..........B10 Emmanuel Macron ..... A7 Entwistle, Brooks.......B4 H-I Hartzer, Brian...........B10 Immelt, Jeff................B2 J Janaillac, Jean-Marc...B3 Johnson, Boris............A1 Johnson, Kevin............B1 K Kennedy, John...........B10 Koo Sung-Hoon.........B11 Kruszewski, Ronald..B10 L Lael Brainard.............B10 Lake, Marianne.........B10 Lee, Edison..................B4 Loeb, Dan....................B2 Lubin, Jim ................. B11 G M Gertler, Dan .............. B12 Glasenberg, Ivan.......B12 Grant, Hugh ................ B6 Martin, Rob.................A2 McMonigle, Joe.........B11 Monson, Guy...............B4 Morarity, Laura...........B4 Myers Jaffe, Amy.....B11 P-Q Papa, Joseph...............B2 Piwowar, Michael ..... B10 Quarles, Randal ........ B10 R Rapport, Mike...........B12 Reilly, Paul................B10 Rixon, Kylie...............B10 S Schaefer, Michael.......B1 Schneider, Mark..........B2 Schoneman, Deb.......B10 Shapiro, Robert ........ A10 Stein, Kara................B10 W-Y Weber, Jim..................B2 Weschler, Ted ............. B1 Wood, Andrew..........B12 Yoon Seok-hun..........B11 Z Zanganeh, Bijan........B11 Load Up Activision Blizzard’s adjusted net segment revenue $8 billion King Blizzard Activision 6 4 2 0 2010 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18* *Projection Source: FactSet HEARD Continued from the prior page ized a style of play called “Battle Royale,” in which a group of players fight until only one remains. That isn’t a mode common in today’s big shooters. “Fortnite” also skews to a younger crowd, with many parents reportedly liking the game’s more social aspects. Still, hours spent on one game are hours not spent on another. Activision believes “Fortnite” has added more to the market than it has taken, even though the company acknowledged “some nearterm impact” from the game on its recent results. Activision also issued a weaker-than-expected revenue forecast for the THE WALL STREET JOURNAL. current quarter while at the same time nudging up its full-year outlook. That suggests confidence in its slate of games coming later this year, including the new “Call of Duty” that will be the fourth iteration in the game’s highly popular “Black Ops” subfranchise. Investors should expect a similar tone from EA in its coming March quarter report on Tuesday as well as TakeTwo’s results, slated for May 16. They also have time to incorporate some of popular aspects of “Fortnite” into their own releases. In his earnings call, Activision Chief Executive Bobby Kotick rightly noted that the company is “very quick to figure out how to capture inspirations from innovation.” It sounds like he has “Fortnite” squarely in his gun sights. Valeant Gives Itself a New Name BY JONATHAN D. ROCKOFF Valeant Pharmaceuticals International Inc. plans to change its name to Bausch Health Cos., as management takes another step toward remaking the company and distancing it from past controversies. The name change, which the company is to announce Tuesday as it reports firstquarter earnings, will take effect in July and come with a new logo, branding and the ticker BHC on the New York and Toronto stock exchanges, Chief Executive Joseph Papa said in an interview. “We think this name captures who we really are becoming,” Mr. Papa said. “We are much more than a pharmaceutical company.” The company will still keep the names of its businesses, such as Salix for the unit that sells gastrointestinal drugs. Canada-based Valeant has been undergoing an overhaul since Mr. Papa took the helm two years ago, after the company faced scrutiny from investors, health insurers and lawmakers over its accounting and business practices, such as buying drugs and then increasing their prices. Mr. Papa, who has replaced NESTLÉ Continued from the prior page Nescafé and Nespresso brands. Nestlé will also manage the business of distributing Starbucks K-Cups, the single-serve coffee pods used in Keurig brewers in North America. Mr. Johnson said Starbucks is the No. 1 coffee brand on the Keurig system. “We intend to keep that,” he said. The transaction doesn’t include any fixed assets and excludes Starbucks’s ready-todrink products. Starbucks has partnerships with PepsiCo Inc. and Anheuser-Busch InBev SA to produce, bottle and distribute its ready-to-drink coffee and Teavana teas. The deal also doesn’t include sales of products at Starbucks coffee shops. About 500 Starbucks employees will join Nestlé. Starbucks must approve any new products to be sold under the label. The deal comes as JAB, a European holding company, has moved aggressively into the American coffee business. The company considers the U.S. to be poised for breakneck growth as consumers shift away from soft drinks. JAB and Nestlé view each other as top competitors. “The coffee market is huge and growing and offers lots of space” for competition, Nestlé Chief Executive Mark Schneider said in an interview. Nestlé has highlighted coffee as a priority, along with bottled water, pet care and infant nutrition. Nescafé gener- ELLIOTT Continued from the prior page Elliott has pushed for Athenahealth to improve operations under Chief Executive Jonathan Bush. The company said in August it would appoint a president and said Monday a search is still under way. Elliott believes Mr. Bush, a cousin of former President George W. Bush, is a visionary much of management and now leads a largely new board of directors, said the company has paid down about $6.9 billion in debt, hired a comptroller who installed new financial-reporting processes and limited price increases for branded prescription drugs to less than 10% a year. The company, which was known under the previous management team for spending little on research, plans to increase R&D spending by about 15% this year to $425 million, Mr. Papa said. Valeant still faces stiff challenges. Its debt surpassed $25 billion at the end of last year. Sales have slowed, partly because the company sold assets to focus the business and to help pay down debt. Valeant’s market capitalization was $6.3 billion Monday, well below the peak three years ago of $90 billion but about $2.2 billion more than the company’s value before Mr. Papa came aboard. Mr. Papa said he had been thinking of renaming the company “probably from the first day I joined.” He waited, he said, until the company had made enough progress that investors wouldn’t think the name change was a ploy to mask poor company fundamentals. The Bausch name refers to one of the company’s key and most storied businesses. Bausch & Lomb, founded in 1853 as an optician’s shop in Rochester, N.Y., introduced the first mass-produced soft contact lenses and invented RayBan sunglasses for the military. Valeant bought Bausch & Lomb for $8.7 billion in 2013, and the eye-care business has been one of its best performers. Its products, from contact lenses to eye-surgery equipment, have become more important to the company’s future. Last year, the segment comprising Bausch and branded generic drugs sold outside the U.S. notched $4.9 billion of Valeant’s $8.7 billion revenue. Mr. Papa said the new name, by referring to health broadly rather than pharmaceuticals in particular, reflects the growing role of nondrug products in the company. The company has been renamed several times. It was founded in 1960 as International Chemical & Nuclear Corp. by a Yugoslav immigrant named Milan Panic, and was known as ICN Pharmaceuticals Inc. as the business focused on prescription drugs. After Mr. Panic was forced out following fights with shareholders and regulators, the company was renamed Valeant in 2003. ates about 10 billion Swiss francs, or roughly $10 billion, of Nestlé’s nearly 90 billion francs in annual sales. Nespresso’s annual sales are more than five billion francs. Last September, Nestlé bought a majority stake in specialty U.S. roaster and retailer Blue Bottle Coffee. Nestlé has been shaking up a product mix that stretches from DiGiorno frozen pizza and Perrier bottled water to Maggi noodles and medicinal foods. That has taken on more urgency since American activist investor Dan Loeb took a big stake in Nestlé. In addition to the Blue Bottle deal, Nestlé last year bought California-based Sweet Earth, which makes vegan and vegetarian products. Earlier this year, Nestlé sold its U.S. confectionery business, which includes the Butterfinger and Baby Ruth brands, to Italian candy maker Ferrero International SA for $2.8 billion in cash. Like other large consumergoods companies, Nestlé has struggled with competition from local upstarts and a rapid shift in consumer tastes toward locally grown, organic food. The company has also had trouble raising its prices. —Zeke Turner and Annie Gasparro contributed to this article. Valeant has been paying down debt since 2016 as proﬁts have risen but it still faces a big bill. Income vs. sales Net income $3 billion 2 1 0 2016 ’17 Long-term debt $40 billion 30 20 10 0 2016 ’17 Source: FactSet THE WALL STREET JOURNAL. PHOTOGRAPHS FROM LEFT: DANIEL ACKER/BLOOMBERG NEWS; NATI HARNIK/AP presentation to the group about Berkshire’s partnership with Amazon.com Inc. and JPMorgan Chase & Co. to lower the three companies’ health- 0 –1 who struggles with execution, according to the people. The company, which is based in Watertown, Mass., also has shaken up its executive posts in recent months, naming former General Electric Co. CEO Jeff Immelt as chairman, succeeding Mr. Bush in the role. Athenahealth had said last year that Mr. Bush would cede the chairmanship as part of a move backed by Elliott and another large investor. The company also hired Marc Ajit Jain, left, and Greg Abel became Berkshire Hathaway vice chairmen in January. man Charles Munger joined the CEOs for a discussion on Thursday. The next day, they heard from Messrs. Jain and Abel. Mr. Combs also gave a Sales The coffee chain’s Teavana brand will become part of the Swiss food company’s portfolio. BUFFETT Continued from the prior page touch with Mr. Buffett, others speak to him once a year or less, he said at the meeting. “It’s a light touch coming from the top,” said Ron Olson, partner at Munger, Tolles & Olson and a Berkshire board member. But “as we have added companies through the years, Warren was increasingly stretched.” Mr. Abel, who was previously CEO of Berkshire Hathaway Energy, now runs all the noninsurance businesses and sets compensation for those managers. Mr. Jain, who was Berkshire’s top reinsurance executive, now oversees all of its insurance businesses, including car insurer Geico. The change was evident at the annual gathering of Berkshire CEOs in Omaha on Thursday and Friday. Mr. Buffett and Berkshire Vice Chair- The Long Road DAMIAN DOVARGANES/ASSOCIATED PRESS These indexes cite notable references to most parent companies and businesspeople in today’s edition. Articles on regional page inserts aren’t cited in these indexes. Activision Blizzard......B1 Air France-KLM...........B3 Alphabet ................ B4,B6 Amazon.com........B2,B11 American Airlines.......B3 Anheuser-Busch InBev .....................................B2 Apple...............B2,B4,B11 ArcelorMittal .............. B6 athenahealth...............B1 AT&T............................B1 Australia & New Zealand Banking.....B10 THE WALL STREET JOURNAL. * **** care costs. “Every time I go to the managers’ luncheon, I feel more strongly at the end of the luncheon” about Berk- Levine, a former software company executive, this year as its finance chief. One of Elliott’s complaints in its letter to Athenahealth’s board was that the “leadership team has lacked stability” noting that the company has had five chief financial officers over the past four years and that its chief product officer just left the firm. Elliott, which has $35 billion in assets, is known best for activism and aggressive invest- ment moves, such as a long fight with Argentina over debt payments that earned its head, Paul Singer, the animus of that country’s government. Its technology activism bets have often pushed companies into private equity, which in the past few years has driven the San Francisco office to increasingly seek to take companies private itself. Still, it hasn’t taken over a company this large on its own before. shire’s future, Mr. Munger said at the annual meeting. “The culture is going to last a long time.” Brooks Running in Seattle expects Mr. Abel to visit its offices later this year, said CEO Jim Weber. But “we’re not waiting around for anyone” to give direction from Berkshire headquarters on how to run the shoe company, he said. “We act and operate it like we own it.” Mr. Buffett said at the meeting that he is less involved in many business decisions than he used to be. He and Mr. Munger helped set prices for See’s Candies decades ago but now he doesn’t know the per-pound price of its chocolates, he said. Mr. Buffett still handles almost $200 billion in stock and bond investments and large capital expenses including big acquisitions. But his two portfolio managers, Messrs. Combs and Weschler, manage about $25 billion in stock investments and take on other projects. Mr. Weschler arranged Berkshire’s 2017 investments in Home Capital Group Inc. and Store Capital Corp., and he has scouted out opportunities for Berkshire in Germany. Mr. Combs is overseeing Berkshire’s role in the health-care initiative with Amazon and JPMorgan. Because the two managers have already arranged deals for Berkshire, Mr. Buffett said shareholders shouldn’t worry about lucrative investment opportunities drying up for the company in the future. Either Mr. Combs or Mr. Weschler was also the first to buy Apple Inc. for Berkshire’s portfolio. The company is now one of Berkshire’s top holdings, as Mr. Buffett started buying the stock as well. Berkshire owns about 5% of Apple, Mr. Buffett said Saturday. . THE WALL STREET JOURNAL. Tuesday, May 8, 2018 | B3 * * BUSINESS NEWS International Flavors & Fragrances Inc. agreed to buy Israel-based Frutarom Industries Ltd. in a $6.4 billion cashand-stock deal that gives one of the world’s largest flavoring makers a foothold in natural foods. The companies and their competitors sell such ingredients as colorings, flavorings and texturizers to better-known packaged food and consumerproducts companies in what is a roughly $28 billion global market. Recently they have been under pressure to help the big brands meet consumer demand for healthier, simpler ingredients. Nestlé SA, General Mills Inc., Unilever PLC and other food companies have sought more natural alternatives to such dyes as Red 40 and highly refined ingredients such as highfructose corn syrup, all the while trying to avoid radical changes in how their products taste. That effort has gained urgency amid weak sales growth for packaged foods in the U.S. and other developed markets. Sales of food made with lessprocessed ingredients have risen 15% in the U.S. since 2014, more than double the rate of conventional foods, according to Nielsen data. “As their sales are slowing down, you feel it,” IFF Chief Executive Adreas Fibig said in an interview on Monday. As they seek to meet their major customers’ needs, IFF and its peers are also investing in firms that specialize in natural offerings and that have smaller, faster-growing food companies as their clients. Geneva-based Givaudan SA, a fra- International Flavors & Fragrances strikes a deal for Israel’s Frutarom Industries. PATRICK KOVARIK/AGENCE FRANCE-PRESSE/GETTY IMAGES grance firm, earlier this year agreed to buy a stake in French plant-based ingredient maker Naturex, with plans to eventually buy the rest. Frutarom develops natural flavor extracts, colorings and pharmaceutical extracts, among other things. The company is expected to post sales of more than $1.6 billion this year. “These are great growth platforms for us going forward,” Mr. Fibig said. He added that the deal gives IFF—which had $3.4 billion in revenue last year—exposure to smaller brands and store brands, which make up about 70% of Frutarom’s sales. Those sorts of food competitors have made inroads against bigger companies. The top 25 food and beverage companies in the U.S. collectively lost $15 billion in market share to smaller brands between 2012 and 2016, food consultancy A.T. Kearney said. IFF’s offer represented an 11% premium to where Frutarom shares closed on Friday. On Monday, the Israeli company’s stock gained 7.6% while IFF fell almost 11%. Monday’s deal ranks as one of the biggest by value for an Israeli firm. “The deal is expensive and risky,” said Brett Hundley, a food analyst with the Vertical Group. There’s potential for significant cost savings and improved sales, he said, “but IFF has a lot of work ahead of it.” An International Flavors lab. Deal for e-commerce startup Flipkart is viewed as creating a bit of an odd couple NEW DELHI—The famously frugal and focused Walmart Inc. is wagering $15 billion on a much different kind of company: a sprawling Indian ecommerce startup that has burned through mountains of cash to try to conquer the By Newley Purnell, Eric Bellman and Corinne Abrams country’s online shopping market. The deal for a roughly 75% stake in Flipkart Group is set to be announced as early as this week. If the union works, it could provide India’s leading online seller needed funds and traditional retailing expertise, while Walmart would be wellpositioned for e-commerce in the world’s second-most-populous nation. “I would not have bet on a deal converging between Walmart and Flipkart, primarily because of the culture difference,” said Kashyap Deorah, an internet entrepreneur and author of “The Golden Tap,” a 2015 book about the history of Indian technology startups. “Walmart is an extensively positive-margin-driven culture, and Flipkart has consis- Flipkart packages in Bengaluru, India, in 2016. The firm holds 40% of India’s online market by sales. tently been a gross-marginnegative business,” he said. The deal shows “Walmart considers India as a long-term strategic market,” he said. Venture capitalists have long assumed India’s internet economy will soon take off like China’s, and they have pumped money into Flipkart. The Bangalore company has used the funding in part to offer deep discounts to shoppers, subsidize shipping and pay for infrastructure, analysts say. Sachin Bansal and Binny Bansal, who share the same last name but are unrelated, founded Flipkart in 2007, having both worked earlier at Amazon Web Services in India. Flipkart, like Amazon, began by selling books. It expanded its offerings over the subsequent decade, tailoring itself to the local market with services such as allowing customers who lack credit cards to pay for goods when they are delivered to their doorsteps. The company now says it has more than 100 million customers and sells items as diverse as smartphones, silver jewelry and spice racks. But its growth has come at a cost. Last year, it raised $1.4 billion from Microsoft Corp., eBay Inc. and China’s Tencent Holdings Ltd. in an investment that valued the firm at $11.6 billion, off from the $15 billion valuation it received during fundraising in 2015. That move came as Amazon.com Inc. challenged Flipkart’s position. The Seattle retailer launched its business in India in 2013, and founder Jeff Bezos has pledged to spend $5 billion to win the market. It now has 31% of India’s online market by sales, compared with Flipkart’s 40%, according to research firm Forrester. Flipkart posted a loss of $1.3 billion on revenue of $2.9 billion for the year ended March 31, 2017, according to the latest available corporate filings. That was steeper than the $781 million loss it posted on revenue of $2.3 billion for the year ended March 31, 2016. Blocked by tight regulations from selling products directly to consumers, Walmart opened its first wholesale outlets in India in 2009 amid hopes that it would eventually be allowed to open consumerfacing stores. Instead, the Bentonville, Ark., behemoth has opened 21 Best Price wholesale stores, with plans to open an additional 50. Online retail in India was worth about $20 billion last year but is likely to rise to $35 billion by 2019, according to Forrester, as more consumers get online and start shopping. China had $935 billion in online sales last year, and the U.S. $459 billion. “I believe Walmart has made a very smart move although they have paid quite a lot,” said Kishore Biyani, founder and chief executive of Future Group, India’s largest retailer by sales. Neither Flipkart’s founders nor a company spokeswoman responded to requests for comment regarding the deal. In acquiring Flipkart, Walmart is joining forces with a startup that has made its share of missteps. Flipkart in 2015 decided to ditch its mobile website, pushing visitors to its app instead. But many users in India on inexpensive smartphones are reluctant to download apps, and later in the year it backtracked and reinstated a mobile site. Also that year, the company celebrated its eighth anniversary with a lavish, five-hourlong concert for its employees and their families. “This was one of the biggest parties Bangalore has ever had,” a Flipkart spokeswoman said at the time. “Others might have had one or two celebrities. We had four.” —Saurabh Chaturvedi in Singapore contributed to this article. Beijing Takes Carriers to Task Over Taiwan BY TREFOR MOSS SHANGHAI—China aviation authorities are threatening to punish foreign airlines operating in China if they refuse to comply with their demands to refer to Taiwan as a part of China on their websites and other marketing materials. U.S. airlines were among 36 international carriers told in late April to amend their websites to reflect China’s sovereignty claims over Taiwan, and to also accurately show the status of Hong Kong and Macau as Chinese territories. The airlines were given 30 days to comply or face potentially severe disruption to their operations in the world’s second-busiest aviation market. White House press secretary Sarah Sanders said Saturday that the threat against the airlines was “Orwellian nonsense and part of a growing trend by the Chinese Communist Party to impose its political views on American citizens and private companies.” Ms. Sanders criticized China’s “internet repression,” and said the U.S. would resist Chinese attempts “to export its censorship and political correctness to Americans.” Though Taiwan has governed itself since 1949, Beijing regards the island as an integral part of China. Cross-strait relations have been strained since Tsai Ing-wen, of the traditionally pro-independence Democratic Progressive Party, was elected president of Taiwan in 2016. Hong Kong and Macau are both part of China, but they are governed under the “one country, two systems” formula, which allows them to maintain certain measures of independence. On Monday, Chinese foreign Air France Strikes Take Further Toll Air France-KLM shares fell nearly 10% Monday after its chief executive said he would resign for failing to quell labor unrest, throwing the company’s strategy into question. Jean-Marc Janaillac on Friday pledged to step down after 55% of nearly 47,000 employees on French contracts at the company’s Air France unit rejected a pay deal. The Air France-KLM board said over the weekend that Mr. Janaillac would stay in his role until a May 15 shareholder meeting, at which it would announce interim management plans. The company’s stock, which closed at €7.30 on Monday, is off by almost half since its re- THOMAS PETER/REUTERS BY ANNIE GASPARRO AND ANTHONY SHEVLIN Walmart Makes a Leap in India DHIRAJ SINGH/BLOOMBERG NEWS Flavoring Maker Buys Rival for $6.4 Billion Airlines have been threatened with punishment if their websites and marketing don’t reflect China’s territorial claims. Beijing’s airport. ministry spokesman Lu Kang defended China’s right to order airlines to rectify their online content. “Foreign companies operating in China have to respect China’s sovereignty and territory integrity, adhere to China’s law and respect Chinese people’s national feelings,” he said. Delta Air Lines Inc. was forced to apologize in January for listing Tibet—which China classifies as one of its autonomous regions—and Taiwan as countries. The Marriott International hotel chain and other companies, including Spanish retailer Zara, came under similar fire. Also in January, China’s civil aviation authority instructed all foreign airlines to review their websites to avoid making similar political missteps. In particular, it warned them against listing Taiwan as a separate country in their destinations or on route maps. In response to Chinese pressure, British Airways and Deutsche Lufthansa AG now refer to “Taiwan, China” and “Hong Kong, China” on their websites. In contrast, U.S. airlines are among those that still make no link between Taiwan and China. United Airlines, for example, refers to “Taipei, TW” cent peak in January. The following month, Air France employees began a series of strikes over wages, forcing the airline to cut back on flights, and incurring what the company says is more than €300 million ($358 million) in costs. Mr. Janaillac’s resignation throws the Franco-Dutch air carrier into disarray, as it struggles to contain costs and compete against both low-cost short-haul airlines in Europe and long-haul service from Middle East carriers. Efforts to cut costs have upset unions, which seek larger pay increases than the airline has been willing to offer. French Finance Minister Bruno Le Maire expressed exasperation with the company’s employees’ vote in a televised interview Sunday. “What’s at stake is the survival of a company that risks disappearing if it doesn’t do what’s necessary to be competitive,” he said. He also said that the French state—which owns a 14% stake in the company—won’t take on the company’s losses. Air France said on its website Monday that it would operate 85% of its scheduled flights, with cancellations hitting medium- and short-haul flights. Mr. Janaillac was brought in to run Air France-KLM less than two years ago. At the time, the firm’s board cited his experience handling delicate labor negotiations when he was CEO of train and bus operator Transdev. Mr. Janaillac had also spent time at Air France in the late 1980s. Under the carrier’s prior CEO, a restructuring program led to clashes with unions that culminated with an angry mob accosting two executives and tearing their shirts in front of TV cameras. —Sam Schechner while Delta offers “Taiwan, TW.” In its April 25 letter, the Civil Aviation Administration of China said some airlines were still guilty of “violating the laws of China,” and said they would be liable for punishment under an aviation industry credit program introduced at the start of 2018. The punishments threatened by the new credit program are vague; persistent offenders could be subject to more frequent government inspections, or have licenses revoked, according to the civil aviation authority. A spokeswoman for Ameri- can Airlines Group Inc. confirmed the airline was among those to receive a letter from Chinese authorities, but declined to say how the airline would respond. Delta and United, which is part of United Continental Holdings Inc., didn’t respond to questions. Passengers using China’s own airports, meanwhile, may not necessarily be aware of the political distinctions. Flights to Hong Kong, Macau and Taiwan are routinely operated out of international, and not domestic, terminals. —Zhang Chunying and Xiao Xiao contributed to this article. ADVERTISEMENT The Marketplace To advertise: 800-366-3975 or WSJ.com/classiﬁeds ANNOUNCEMENTS BUSINESS OPPORTUNITIES Fine Art Opportunity BankNewsletter.com Rare Jan Lievens painting, authenticated and exhibited in Catalogue Raisonne, is available. Please contact for pricing. 203-942-5905 US (773) 565-8064 email@example.com Hughes Investment Management Money Management at its best! 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Algorithms efﬁciently calculate price elasticity on individual products taking into account constantly-changing factors including currencies, costs, tax and competition. $ Previously... Individuals attended fashion shows and kept tabs on fashion magazines and other sources to spot what's in. Source: the company Previously... H&M could only process a limited number of inputs and allocated products to stores grouped by location or size. Previously... Prices were determined by merchandisers through a more manual and time-consuming process that relied on generic information. THE WALL STREET JOURNAL. Photo: Maxim Shemetov/Reuters H&M Ramps Up Data Use Chain aims to tailor each store’s wares to local tastes in effort to win back shoppers lies on a team of designers to figure out what shoppers want to buy. Now, it is using algorithms to analyze store receipts, returns and loyalty-card data to better align supply and demand, with the goal of reducing markdowns. As a result, some stores have started carrying more fashion and fewer basics such as T-shirts. Analysts remain skeptical that the new strategy will pull H&M out of its slump. Almost half of analysts who cover the stock have a “sell” recommendation on it compared with 36% a year ago, according to data provider FactSet. H&M is the latest retailer to turn to technology to win customers. Inditex SA’s Zara is using robots to make it easier for shoppers to pick up online orders in stores; Gap Inc. is relying on Google analytics and market-research data to monitor consumer preferences. But H&M’s strategy of using granular data to tailor merchandise in each store to local tastes, rather than take a cookie-cutter approach that groups stores by location or size, is largely untested in the industry, consultants say. Getting every store right is a mammoth task given H&M’s BY SAABIRA CHAUDHURI STOCKHOLM—The world’s largest clothing brand is turning to artificial intelligence to win back shoppers, as it works to reverse one of the worst sales slumps in its history. Hennes & Mauritz AB’s H&M retail chain is ramping up its use of data to customize what it sells in individual stores, breaking with its longstanding practice of stocking stores around the globe with similar merchandise. The 71-year-old fast-fashion chain is aiming to arrest a slump in same-store sales that has lasted 10 straight quarters as it faces problems bedeviling the industry: A spike in online shopping has led to fewer customers visiting stores, and digital startups are putting up fierce competition. H&M has repeatedly slashed prices to clear out $4 billion of unsold goods, and its shares are down 56% in the past three years. H&M, like most retailers, re- Fashion Fail H&M's comparable store sales, change from previous year. 6% 4 2 0 0 –2 –4 –6 –8 2015 ’16 ’17 ’18 Note: Figures after 1Q 2018 are estimates Source: RBC THE WALL STREET JOURNAL. size. The brand has 4,288 stores, compared with Zara’s 2,127 and Gap’s 1,301. The H&M store in Stockholm’s swanky residential Östermalm neighborhood hints at how data can help. The store used to focus on basics for men, women and children, with managers assuming that was what local customers wanted. But by analyzing purchases and returns in a more granular way, H&M found most of the store’s customers were women, and fashion-focused items like floral skirts in pastel colors for spring, along with higher-priced items, sold unexpectedly well. The company says sales at the store—an early adopter of the technology it has begun rolling out globally—have improved significantly but declined to provide figures. To detect trends three-toeight months in advance, H&M is analyzing data from blog posts, search engines and other sources rather than relying mainly on staff. With the help of about 200 data scientists, analysts and engineers— internal staff and external contractors—H&M also is using analytics to look back on purchasing patterns for every item in each of its stores. In some cases, staff have to be convinced to rely on the numbers rather than gut instincts. “There’s an overestimation of one’s personal capabilities and taste which is very, very human but can be very, very bad,” says Michael Feindt, founder of Blue Yonder, a consultancy that helps retailers use data. “Artificial intelligence is way more unemotional and that’s good.” BY DANIEL MICHAELS BRUSSELS—Sonos Inc., the Santa Barbara, Calif.-based wireless-speaker company, recently sent a notice to users world-wide that wasn’t about another software update. It covered the European Union’s new internet-privacy rule. The EU’s General Data Protection Regulation, or GDPR, takes effect later this month, and “because we believe all Sonos owners should have the right to these protections, we are implementing these updates globally,” the company said. Apple Inc., Facebook Inc. and Twitter Inc. also say they have updated their global privacy rules in anticipation of the new law. GDPR is the latest sign of the EU’s growing power in global regulation. With increasing frequency, EU rules targeting industries within the bloc—from consumer products to financial services—have set international benchmarks. Some are taken piecemeal, as with GDPR, from which nonEU companies are cherry-picking elements. Other rules have become de facto world-wide references. The EU’s Undertakings for Collective Investment in Transferable Securities, or UCITS V, which in 2016 updated a financial directive first BEHROUZ MEHRI/AGENCE FRANCE-PRESSE/GETTY IMAGES Tech Firms Update Privacy Protections An internet-privacy rule takes effect later this month in Europe. adopted in 1985, “is clearly regarded as a global standard,” said Guy Monson, chief investment officer at asset manager Sarasin & Partners in London. California’s electronicwaste recycling act of 2003, updated last year, specifically cites a broader EU law passed in 2002. Several other U.S. states, including New York, followed California’s example and cite EU law. The EU’s 2006 Registration Evaluation, Authorization and Restriction of Chemicals law, or REACH, has spawned copycat chemical-safety legislation in China, South Korea, Turkey and other countries, though few are as sweeping as the EU law, industry officials say. More than 120 countries have adopted privacy laws based on Europe’s regulations over recent decades, according to Graham Greenleaf, a professor of law and information systems at Australia’s University of New South Wales. Europe’s growing international influence stems from a confluence of factors, starting with its market size. Companies wanting access to the EU’s 500 million potential consumers must play by EU rules. While some companies complain about EU regulations, in today’s globalized markets many also seek to standardize internationally. Sonos never considered implementing GDPR only for EU customers, said spokeswoman Laura Morarity. “Preparing for GDPR was, of course, a substantial time investment but a worthwhile one,” she said. EU influence on regulation and business conduct far from its borders is so widespread that Columbia Law School Professor Anu Bradford in 2012 dubbed it the “Brussels Effect.” The term nods to the previously noted “California Effect,” in which the state’s strict laws lifted regulatory standards in the rest of the U.S. Prof. Bradford, who is now writing a book on the Brussels effect, said GDPR exemplifies “even stronger manifestations” of the phenomenon over recent years. She noted that Facebook and Alphabet Inc.’s Google follow EU standards on expunging hate speech globally despite lack of obligation to do so. Until the 1980s, the U.S. led the world in business regulation but has since been eclipsed by the EU, Prof. Bradford said. Over that time, the EU has standardized many rules across its 28 members, often making them stricter in the process. European countries have long imposed extensive and often costly regulations on firms operating domestically, and critics see the same in EU rules. Many business leaders say Europe’s labor codes, consumer protections and environmental laws put it at a competitive disadvantage against foreign rivals. —Sam Schechner in Paris contributed to this article. Uber in Exit Push From Southeast Asia BY JAKE MAXWELL WATTS SINGAPORE—Uber Technologies Inc. and its ride-hailing rival Grab Inc. are pressing on with their Southeast Asia consolidation as regulators consider whether a de facto Grab monopoly would harm drivers and passengers. Uber said in an email to subscribers it would close its app in Singapore on Monday, sealing the U.S. company’s exit from a 10-nation region of some 600 million people. It recommended riders download the Grab app. The two companies have been working together to address regulators’ concerns, said Brooks Entwistle, Uber’s top executive in Asia. “We’re sideby-side with Grab,” he said. The Competition & Consumer Commission of Singapore said Monday that it had appointed law firm Smith & Williamson LLP to ensure compliance with restrictions on how the two operate while it investigates the consolidation. The two companies, which unprofitably vied for dominance over several years, agreed in March that Uber would quit the region in exchange for a 27.5% stake in Singapore-based Grab. The deal is all but complete in most Southeast Asian countries. Uber’s offices have begun closing down and many employees have left or joined the merged entity. Grab, meanwhile, is in talks to raise $1 billion. Competition analysts say regulators in Southeast Asia— whose countries are at very different stages of development—often lack the funding and historical case record to fulfill their mandates, even if in theory they have the power to undo transactions. In the Philippines, which like Singapore is investigating the deal, competition laws are new. Other countries, such as Malaysia, don’t have laws allowing review of proposed mergers, or, like Thailand, have no record of successful enforcement actions. Stopping the deal or imposing fines “could be legally difficult for little reward,” said R. Ian McEwin, head of Competition Consulting Asia. Uber and Grab argue that there is plenty of competition from new entrants such as Ryde and PT Go-Jek Indonesia. Interim measures in Singapore require Uber and Grab to maintain a degree of separation. For instance, they are prohibited from sharing his- Both Grab and Uber say that they are cooperating with Singapore regulators. torical ride-sharing data, or from changing their pricing and commission levels. Uber and Grab say they are cooperating with the Singapore commission, which said it would consent to Monday’s closure of the Uber app. In the Philippines, Uber closed its app April 16, defying an order from the local competition commission. The commission called on Uber and Grab to explain, and said that despite new competition, the deal “will mean gobbling up 93% of the ride-hailing market.” Uber referred a request for comment to Grab, which said it is “actively cooperating” with the Philippines review and had filed a motion to lift interim requirements to keep the Uber app active and to maintain independent operations from Uber. —Dan Strumpf in Hong Kong contributed to this article. TRAN VAN MINH/ASSOCIATED PRESS H&M is working to harness billions of inputs to help it order, price and allocate products better. Here’s how the retailer is beginning to use big data to give its customers exactly what they're after: HONG KONG—Taiwanese regulators authorized a supplier of smartphone chips to resume sales to ZTE Corp., a boost for the Chinese telecommunications company after its U.S. suppliers were barred from selling it parts. The Taiwanese supplier, MediaTek Inc., won approval to resume exports of chips to ZTE, a MediaTek spokesman said Monday. The company supplies chipsets used in a number of ZTE smartphones, and while not a cure-all, analysts said a resumption of sales to ZTE restores an important part of ZTE’s supply chain. U.S. companies last month were banned by the U.S. Commerce Department from exporting components to Shenzhenbased ZTE, a move that ZTE has said cuts it off from crucial parts and threatens its survival. While Taiwanese companies like MediaTek aren’t directly covered by the ban, Taiwanese regulators required companies there that do business with ZTE to apply for permits to continue exporting to ZTE. The MediaTek spokesman said Taiwanese authorities granted the approval on Friday. An official at Taiwan’s Ministry of Economic affairs, which grants export permits, confirmed that it granted an export permit to MediaTek. The official said several other Taiwanese firms are awaiting export approval, but declined to name them. A ZTE spokeswoman didn’t respond to a request to comment. MediaTek supplies chipsets for a number of ZTE smartphones sold world-wide. While ZTE could conceivably rely on MediaTek to replace chipsets made by others, it is unlikely to solve all of its woes, said Edison Lee, a telecom analyst at Jefferies. For example, San Diego-based Qualcomm Inc. makes some high-end chipsets that the Taiwanese firm can’t replace, he said. “MediaTek being able to supply chipsets to ZTE is a good thing, but it’s not good enough,” Mr. Lee said. In addition, Qualcomm is set to supply ZTE with 5G chipsets that ZTE needs for its phones to run on next-generation wireless networks, he said. ZTE relies on U.S. companies for crucial parts, including parts for its smartphones and components used in the gear it sells to telecom operators. ZTE is the fourth-largest smartphone vendor in the U.S. and uses the Android operating system—made by Alphabet Inc.’s Google—for its phones. ZTE has been fighting the U.S. export ban since it was announced last month. On Sunday, it said it formally submitted a request for a stay of the ban with the U.S. Commerce Department. Last week, Chinese officials raised concerns about the ban to a U.S. trade delegation traveling in China. —Yoko Kubota contributed to this article. Grab aims to raise $1 billion. GrabBike driver, in green top, in Hanoi. . THE WALL STREET JOURNAL. Tuesday, May 8, 2018 | B5 * * * * BUSINESS NEWS Universal Raises Its Bet on Beijing Park Planned investment with Chinese partners doubles to $6.5 billion; opening likely in 2021 Universal Parks & Resorts and its Chinese partners are expanding plans for a 300-acre theme park in Beijing, doubling their investment to $6.5 billion to tap the booming Chinese theme-park market, according to a person familiar with the matter. The investment would surpass that of Walt Disney Co.’s Shanghai Disney Resort— which at the time of its 2016 opening cost more than $5.5 billion—and represents the most ever spent to launch a theme park, according to industry experts. “It would be the first time Disney has been outspent on a theme-park project,” said Dennis Speigel, who heads a theme-park consulting firm in the U.S. The decision to double down on Universal Beijing drew from the success of Disney’s Shanghai park, which attracted more than 11 million visitors in its first year, the person familiar with the matter said. Disney has since expanded the Shanghai park, SIPA ASIA/ZUMA PRESS BY WAYNE MA The decision was spurred by Disney’s success with its park in Shanghai, which opened in 2016 at a cost of more than $5.5 billion. opening a fantasy land based on the Toy Story movies last month. Universal now expects its Beijing park to draw 10 million visitors in its first year, up from an initial projection of 7 million, the person said. The increased investment will go toward expanding retail and entertainment space, improving planned attractions and building new lands including one based on the Harry Potter books and films, the person said. The park will also have attractions based on the Transformers, Minions and Kung Fu Panda film franchises, which have strong followings in China, a second person said. The move comes as China’s theme-park industry is on track to dethrone that of the U.S. in the next few years. Theme-park revenue in China Investors Cash Out in Indonesia FOX BY BEN OTTO AND I MADE SENTANA JAKARTA—A steep recent slide in Indonesia’s stock markets and currency is rooted in heavy foreign ownership of the country’s government bonds— something officials here have been trying to change. The Indonesian stock market has slid more than 7% in two weeks, while the rupiah has shed 1.4% since mid-April as global investors have pulled funds from emerging markets. The selloff is partly because of ripple effects from Indonesia’s local-currency bond market, which until recently has been a beneficiary of investors’ yearslong search for yield. Since mid-April, roughly $2 billion of foreign money has flowed out of rupiah-denominated bonds, part of a global trend for capital to return to U.S. markets, where bond yields and the dollar have been rising. The yield on Indonesia’s benchmark 10-year govern- ment bond has risen to 7.054% Monday from 6.596% on April 16, according to Thomson Reuters, while the cost of insuring Indonesian government debt has jumped, with the price of five-year credit-default swaps up 17% in the past month, according to IHS Markit. The selloff illustrates how even emerging markets with apparently solid positions can be vulnerable to broader global trends if they have become reliant on foreign ownership of local assets. Continued from page B1 assets for months. Fox, citing regulatory concerns, turned down a Comcast stock offer in the low-$60s billion range before sealing the Disney deal, people familiar with the matter have said. Comcast’s offer was a 16% premium to Disney’s, according to a securities filing and people close to the deal talks. It is possible Comcast could bid a bit lower than last time if it pursues a hostile effort, one of the people familiar with topped $6 billion last year, up 27% from 2016, and is expected to hit $14 billion by 2022, according to market researcher Mintel. Universal Parks & Resorts is a unit of Comcast Corp.’s NBCUniversal, and has theme parks in Los Angeles, Orlando, the situation said. The cable company believes an all-cash offer would be compelling to most Fox shareholders. Fox turned down a Comcast stock offer before sealing the Disney deal. One concern raised from the Fox side during the last round of deliberations was the relative value of Comcast shares versus Disney shares, Singapore and Japan. Universal will hold a 30% stake in the Beijing park, with the remainder held by Beijing Shouhuan Cultural Tourism Investment Co., which is owned by five Chinese companies. In announcing plans for the Beijing park in 2014, Universal said it would cost $3.26 billion and open in 2020. The opening will now be pushed back to 2021 because of lengthy negotiations over commercial terms and hiring challenges, according to people familiar with the matter. Hiring is on schedule, one person said, adding that the new plans include a CityWalk shopping, dining and entertainment district adjacent to the park as well as a Universal-branded hotel. Although design work has begun and land has been cleared, major construction hasn’t yet started but is expected to begin this year, people familiar with the matter said. At the time of the 2014 announcement, only a preliminary agreement was in place between the partners, the first person said. The joint venture was established in 2017, after more than three years of talks, that person said, adding to delays. so an all-cash bid would take that off the table, the person said. Comcast shares have been under pressure in recent months. The cable company’s chief financial officer, Michael Cavanagh, said on an earnings call late last month that Comcast was unlikely to use its stock to make deals. He said the company’s strong balance sheet will give it flexibility to consider opportunities “at times like this.” 21st Century Fox and Wall Street Journal-parent News Corp share common ownership. HEADACHES NECK PAIN NUMBNESS & TINGLING IN YOUR FINGERS lbs. SIGNS OF TECH NECK Staring down at a mobile device places 60 pounds on your neck & stress on your spine, resulting in poor posture. Your doctor of chiropractic can provide you with tech neck care options to RELIEVE your pain and discomfort, correcting your overall posture. GOOD POSTURE MATTERS — SEE YOUR DOCTOR OF CHIROPRACTIC. To ﬁnd a doctor of chiropractic near you, visit: www.f4cp.com/ﬁndadoctor ©2017 Foundation for Chiropractic Progress . THE WALL STREET JOURNAL. B6 | Tuesday, May 8, 2018 BUSINESS NEWS BUSINESS WATCH BY KELSEY GEE AND LAUREN WEBER Companies trying to rectify a legacy of discrimination are finding that some tactics are sparking new grievances. The Wing, a women’s shared-office space and networking club, has drawn such ire. Its no-men-allowed membership policy for collaboration spaces in New York is designed to attract women professionals who want to encourage and invest in one another. In March, the New York City Human Rights Commission launched an investigation into the Wing’s practices. Seth Hoy, a spokesman for the New York commission, confirmed the agency’s probe and declined to comment on it further. He says the agency works to ensure that businesses comply with laws prohibiting gender discrimination. The inquiry is one of the latest examples of how femaleonly initiatives and other diversity efforts are drawing objections from those who feel the programs unfairly exclude other people. Audrey Gelman, co-founder of the Wing, says it provides its more than 1,500 members an opportunity they wouldn’t otherwise have: a critical mass of women to contribute to each other’s work. “These women are starting businesses together, hiring one another, encouraging each other to quit their corporate jobs to pursue their dreams and raising money from one another,” she says. The tensions show the strain that U.S. companies can come under. Some investors, employees, and customers are pressing companies to diversify their ranks and achieve gender parity. Many companies ELIZABETH SHAFIROFF FOR THE WALL STREET JOURNAL Critics of recent inclusion efforts say programs unfairly exclude other people The Wing’s workspaces are designed to attract women who want to collaborate with other women. trying to reach those goals are attempting to avoid offending anyone or wading into murky legal territory. Alphabet Inc.’s Google is fighting claims that corporate diversity policies have hurt white men and left women underpaid. In January, four former female Google employees alleged in a lawsuit that the company systematically pays and promotes men more than women. In a lawsuit filed shortly after, former male employees alleged that Google unfairly favors women and certain minorities when hiring and promoting. The company rejects both allegations. Some employers are defending inclusion programs by highlighting the subtle effects of bias they say they continue to see. Others are trying to ease the tension by opening up initiatives to everyone. Since 2016, Deloitte Touche Tohmatsu Ltd., the accounting and consulting firm, has diminished the role of standalone internal networks for women and minorities as it formed “inclusion councils,” the firm said. It says it hoped to engage more workers across the spectrum to collaborate on diversity efforts. When word got out that Deloitte planned to shift resources away from affinity groups, several employees took to Fishbowl, an anonymous career app, to air concerns that the inclusion councils would hinder the goals of underrepresented groups of employees. Deloitte says the councils are a success. One pilot program that looped in a wider array of staff into planning for the firm’s participation in the LGBTQ Pride Parade in Chicago Some companies try to ease tensions by opening up initiatives to everyone. tripled the number of employees who joined the event last year, Deloitte says. Attempts to promote diversity without alienating other groups can lead to semantic and legal gymnastics. A coming Girl’s Empowerment Camp sponsored by the San Diego Fire Rescue Foundation in mid-May is promoted with an asterisk: It is open to any teen between the ages of 14 and 18, not just girls. At HealthSherpa, a San Francisco company that helps people sign up for insurance through public exchanges, cofounder and product chief Cat Perez is responsible for building a diverse workforce. When she proposed paying employees larger bonuses a few years ago for referring women and minorities as new hires, she says the idea hit resistance and eventually was dropped. Three white employees questioned the legality of such a plan, she says. Ms. Perez said she had discussed the idea with one of her investors and consulted with human-resource experts. She also emphasized that the right skills and experience were still base-level requirements to get hired. Even so, the conversations with employees who objected to the idea were unproductive and “incredibly uncomfortable,” she said. Looking back, Ms. Perez said she wishes she had hired someone to facilitate a conversation about diversity, not only to talk through the business case but also to allow employees to air their fears or objections. She realized that diversity efforts move slowly. Her advice: “Rally the team behind one initiative to start.” Rising Costs Take Toll on Results Sales rose at Tyson Foods Inc. in its fiscal second quarter, helped by packaged foods, but rising labor and freight costs weighed on margins. Tyson said Monday that its profit was $315 million in the quarter, or 85 cents a share, down from $340 million, or 92 cents a share, in the year-earlier period. On an adjusted basis, Tyson said profit was $1.27 a share, up from $1.01 a share. Analysts polled by Thomson Reuters were expecting adjusted earnings of $1.30 a share. Sales increased 7.6% to $9.77 billion, falling short of analysts’ expectations of $9.89 billion. Sales of prepared foods rose 23% to $2.15 billion, benefiting from the purchase of AdvancePierre Foods. Sales of chicken and beef, which make up about 60% of the company’s top line, each rose by more than 5%. Higher freight and labor expenses weighed on operating income for its beef, pork, chicken and packaged-food segments, Tyson said. —Allison Prang MONSANTO Top Ranks to Exit After Acquisition Monsanto Co. Chief Executive Hugh Grant will leave the company after Bayer AG closes its purchase of the agriculture firm he has led for about 15 years. Mr. Grant has worked at Monsanto for 35 years and has served as chairman and CEO since 2003. Chief Financial Officer Pierre Courduroux and a number of other top executives, such as the general counsel and chief technology officer, are also leaving after the deal is completed, Monsanto said Monday. Monsanto Chief Operating Officer and President Brett Begemann— along with some other Monsanto executives—will become part of Bayer’s crop-science executive-leadership team when the deal is completed. Bayer is targeting to close the purchase in the second quarter of this year. —Allison Prang ARCELORMITTAL Deal for Steelmaker Draws Support ArcelorMittal’s purchase of Italian steelmaker Ilva is getting a thumbs up from industry analysts, even though it must divest itself of several mills in exchange for the European Commission’s approval for the €1.8billion ($2.2 billion) acquisition. “Investors continue to underestimate ArcelorMittal’s ability to derive value by improving Ilva’s mix rather than solely chasing after market share,” says Jefferies Group, which estimates Mittal can expand production of premium-grade steel products by more than one-third by 2020. Ilva has some of the newest facilities in Europe for making galvanized sheet steel for the auto industry, the firm says. —Bob Tita PATRICK PLEUL/DPA/ZUMA PRESS Firms Face Diversity Fallout TYSON FOODS ArcelorMittal is divesting itself of several mills in order to buy Ilva. Tokyo Meeting May 15, 2018 Speakers Include: Chung-in Moon Special Advisor for Unification, Foreign and Security Affairs for President Moon Jae-in, South Korea Susan Thornton Acting Assistant Secretary, Bureau of East Asian and Pacific Affairs, U.S. Department of State Sophie Richardson China Director, Human Rights Watch Takeshi Uchiyamada Chairman of the Board of Directors, Toyota Motor Corporation Hiroshige Seko Minister of Economy, Trade and Industry, Japan Kathy Xu Founder and Managing Partner, Capital Today Group (subject to parliament’s schedule) Platinum Global Sponsor Globally Sponsored By © 2017 Dow Jones & Co., Inc. All rights reserved. 6DJ6434 Join top CEOs, WSJ editors, and policy makers at the CEO Council Tokyo Meeting. We’ll examine how companies and governments can best capitalize on the return of global growth. How will shifts in monetary policy, nationalism, security, trade policy and other economic forces open new opportunities and create new hurdles for growth? CEO Council membership is by invitation. Learn more: CEOCouncil.wsj.com Proudly Sponsored By . THE WALL STREET JOURNAL. Tuesday, May 8, 2018 | B7 MARKETS DIGEST EQUITIES Dow Jones Industrial Average S&P 500 Index Last Year ago 24357.32 s 94.81, or 0.39% High, low, open and close for each trading day of the past three months. Trailing P/E ratio 24.05 20.51 P/E estimate * 16.02 17.78 Dividend yield 2.19 2.30 All-time high 26616.71, 01/26/18 Current divisor 0.14523396877348 Session high 2672.63 s 9.21, or 0.35% High, low, open and close for each trading day of the past three months. Trailing P/E ratio * 23.49 23.76 P/E estimate * 16.82 18.44 Dividend yield 1.95 1.97 All-time high 2872.87, 01/26/18 Session low 65-day moving average Last Year ago 7265.21 s 55.60, or 0.77% High, low, open and close for each trading day of the past three months. Trailing P/E ratio * 25.06 26.09 P/E estimate * 19.96 20.97 Dividend yield 1.04 1.08 All-time high: 7588.32, 03/12/18 2800 7500 2750 7300 25200 2700 7100 24400 2650 23600 2600 22800 2550 65-day moving average 26000 Open t Close Year ago 26800 UP Close t DOWN Session open Nasdaq Composite Index Last 6900 65-day moving average 6700 6500 Bars measure the point change from session's open 22000 Jan. Feb. Mar. Apr. May 2500 Feb. Jan. Mar. Apr. May 6300 Feb. Jan. Mar. Apr. May *Weekly P/E data based on as-reported earnings from Birinyi Associates Inc. Major U.S. Stock-Market Indexes High Latest Close Low Net chg % chg High 52-Week Low % chg YTD % chg 3-yr. ann. Dow Jones 24479.45 24263.42 24357.32 94.81 Transportation Avg 10420.01 10329.38 10361.75 -8.48 Industrial Average 705.71 Utility Average Total Stock Market Barron's 400 699.44 700.34 S&P 500 Index 7235.76 6796.05 2683.35 7265.21 6821.87 2664.70 2672.63 9.21 1916.86 970.71 1901.77 961.16 1907.92 966.49 10.47 7.57 Other Indexes Russell 2000 1586.41 1565.72 1578.95 13.34 12567.70 12492.84 12519.75 Value Line NYSE Arca Biotech 14.0 -2.4 5.9 774.47 647.90 -0.3 -3.2 6.5 29630.47 24391.29 624.99 0.62 757.37 11.8 12.4 0.3 1.1 8.4 8.3 0.43 0.77 7588.32 0.78 7131.12 0.35 551.97 554.74 2.77 4542.92 4483.12 4536.78 53.66 NYSE Arca Pharma 522.58 518.02 519.25 0.69 107.52 106.19 0.56 PHLX§ Gold/Silver 107.07 82.88 81.98 PHLX§ Oil Service 81.99 160.47 156.51 156.73 0.82 1314.50 15.27 1301.87 14.51 1308.48 14.75 11.75 -0.02 2357.03 5.2 6.7 19.0 20.5 11.4 -0.04 13.7 15.7 8.6 1691.67 817.25 10.2 14.2 0.4 3.2 8.2 11.0 1610.71 1355.89 13.5 2.8 8.8 Volume, Advancers, Decliners Most-active issues in late trading Volume (000) Last iShares iBoxx $ HY Cp Bd HYG 8,515.6 85.50 ... SPY SPDR S&P 500 Finl Select Sector SPDR XLF 6,827.2 266.55 -0.37 Company Symbol Net chg After Hours % chg High unch. Low 85.50 85.33 -0.14 267.55 266.53 4,816.9 27.46 0.01 0.04 27.53 27.42 -0.05 -0.16 32.52 32.00 Parsley Energy Cl A PE 4,530.1 32.10 Pfizer PFE 3,999.3 35.14 0.21 0.60 35.14 34.93 Comcast Cl A CMCSA 3,115.3 32.20 -0.19 -0.59 32.50 32.20 VanEck Vectors Jr Gold GDXJ 2,912.6 33.34 … unch. 33.36 33.30 Kinder Morgan 2,540.6 16.21 … unch. 16.36 16.21 13.95 KMI Percentage gainers… Graphic Packaging GPK 175.2 15.50 1.54 11.03 15.50 Pareteum TEUM 289.0 3.04 0.26 9.35 3.04 2.78 Carrizo Oil Gas CRZO 1,309.1 21.80 1.40 6.86 21.88 20.17 Sangamo Therapeutics SGMO 50.9 17.10 0.85 5.23 17.10 16.25 Apptio Cl A 80.6 32.95 1.21 3.81 32.95 31.74 82.4 77.58 -14.68 8.0 -2.3 4.3 6.1 -1.3 3.0 1.20 4939.86 3507.64 27.7 7.5 5.3 0.13 593.12 514.66 0.9 -4.7 -3.3 ...And losers 116.52 88.87 15.2 0.3 13.0 Nevro NVRO -15.91 92.96 75.00 93.26 76.42 1.8 -3.8 4.5 Hertz Global Holdings HTZ 685.1 20.39 -1.77 -7.99 22.18 19.65 165.78 117.79 3.9 Zillow Group Cl A ZG 248.6 52.00 -3.60 -6.47 55.70 50.05 1445.90 37.32 1007.16 9.14 29.9 51.0 j2 Global JCOM 50.1 80.50 -5.10 -5.96 85.65 80.50 Zillow Group Cl C Z 885.0 52.90 -3.01 -5.38 55.95 51.00 0.53 -0.41 -0.50 0.52 0.91 -0.14 4.8 -10.4 4.4 33.6 23.5 -0.8 APTI Sources: SIX Financial Information; WSJ Market Data Group Region/Country Index Close Percentage Gainers... Latest % chg Net chg YTD % chg 3052.00 395.63 264.15 9.47 1.38 0.77 0.31 0.35 0.29 –1.1 –0.4 –1.0 Americas Brazil Canada Mexico Chile DJ Americas 641.39 Sao Paulo Bovespa 82714.43 S&P/TSX Comp 15808.63 S&P/BMV IPC 46474.70 Santiago IPSA 4213.14 2.38 –403.61 79.23 –517.47 8.43 0.37 –0.1 8.3 –2.5 –5.8 0.1 EMEA Eurozone Belgium Denmark France Germany Israel Italy Netherlands Russia South Africa Spain Sweden Switzerland Turkey U.K. U.K. Stoxx Europe 600 Euro Stoxx Bel-20 OMX Copenhagen CAC 40 DAX Tel Aviv FTSE MIB AEX RTS Index FTSE/JSE All-Share IBEX 35 OMX Stockholm Swiss Market BIST 100 FTSE 100 FTSE 250 The Global Dow DJ Global Index DJ Global ex U.S. –0.49 0.50 –1.10 0.20 0.64 389.51 2.48 0.51 394.71 1.99 3889.26 –0.14 –5.34 1.44 914.46 12.97 0.28 5531.42 15.37 1.00 12948.14 128.54 1474.74 –0.09 –1.39 0.86 24544.26 209.24 0.39 557.86 2.16 0.63 1153.85 7.24 0.40 57880.72 231.85 0.36 10140.90 36.80 1.12 584.38 6.49 0.84 8978.65 74.82 100866.24 –1732.98 –1.69 Closed 7567.14 … Closed 20421.88 … S&P/ASX 200 6084.50 Shanghai Composite 3136.64 Hang Seng 29994.26 S&P BSE Sensex 35208.14 Nikkei Stock Avg 22467.16 Straits Times 3532.86 Kospi 2461.38 TAIEX 10604.91 SET 1779.80 21.60 45.61 67.76 292.76 –5.62 –12.52 … 75.54 –0.07 0.36 1.48 0.23 0.84 –0.03 –0.35 Closed 0.72 –0.004 0.1 2.4 –2.2 –1.4 4.1 0.2 –2.3 12.3 2.4 –0.1 –2.7 1.0 2.7 –4.3 –12.5 –1.6 –1.5 0.3 –5.2 0.3 3.4 –1.3 3.8 –0.2 –0.4 1.5 Sources: SIX Financial Information; WSJ Market Data Group Company Symbol Twin Disc Bioblast Pharma Evolus VivoPower International CEL-SCI TWIN athenahealth ACM Research Cl A Gramercy Property Trust National CineMedia Cohbar ATHN Turtle Beach ObsEva Tetraphase Pharma Gannett Daxor Corp HEAR 52-Week Low % chg High 31.95 14.81 5.99 1.49 12.97 6.75 6.69 1.02 3.69 1.30 41.7 -3.9 ... -17.4 2.4 Integrated Media Tech Broadvision Ascent Capital Grp A TravelCenters of America Intl Flavors Fragrances IMTE 146.75 20.67 12.51 1.70 GPT 27.50 3.68 NCMI 6.43 0.85 CWBR 6.29 0.81 16.39 15.73 15.45 15.23 14.70 158.66 102.63 15.60 4.74 31.26 21.12 8.89 5.09 6.97 4.44 38.0 ... -0.8 -23.8 ... Intersect ENT Technical Communications China Recycling Energy Agenus Sibanye-Stillwater ADR XENT 7.33 11.52 3.64 10.89 6.84 14.53 13.39 12.69 12.27 11.76 103.4 76.1 -51.0 32.2 -4.6 Sears Holdings Schmitt Industries Boingo Wireless Evofem Biosciences Level Brands SHLD VVPR CVM ACMR OBSV TTPH GCI DXR 0.93 1.36 0.41 1.19 0.72 7.48 15.81 8.75 12.38 21.66 1.64 5.00 2.05 7.36 3.40 Volume % chg from Latest Session Symbol (000) 65-day avg Close % chg Neovasc Blink Charging iShares MSCI Emg Markets Advanced Micro Devices SPDR S&P 500 NVCN Bank of America Apple Gramercy Property Trust Chesapeake Energy Micron Technology BAC BLNK EEM AMD SPY AAPL GPT CHK MU 52-Week High Low Selected rates A consumer rate against its benchmark over the past year New car loan t Prime rate 3.50 t 2.50 MJ J A S O ND J FMAM 2017 2018 Cambridge Savings Bank 2.69% Cambridge, MA 888-418-5626 Farmers State Bank Waterloo, IA 2.90% 877-FSB-1879 STAR Financial Bank Fort Wayne, IN 2.93% 765-622-4173 Yield/Rate (%) Last (l)Week ago Federal-funds rate target 1.50-1.75 1.50-1.75 Prime rate* 4.75 4.75 Libor, 3-month 2.36 2.37 Money market, annual yield 0.41 0.45 Five-year CD, annual yield 1.67 1.68 30-year mortgage, fixed† 4.56 4.54 15-year mortgage, fixed† 4.01 4.00 Jumbo mortgages, $424,100-plus† 4.81 4.85 Five-year adj mortgage (ARM)† 4.56 4.58 New-car loan, 48-month 3.82 4.24 3-yr chg 52-Week Range (%) Low 0 2 4 6 8 High (pct pts) 0.75 l l 4.00 l 1.17 0.25 l l 1.29 l 3.73 l 2.99 l 4.21 l 3.22 l 2.85 1.50 4.75 2.37 0.45 1.69 4.62 4.07 4.96 4.70 4.27 1.50 1.50 2.09 0.10 0.22 0.61 0.86 0.56 1.27 1.32 Bankrate.com rates based on survey of over 4,800 online banks. *Base rate posted by 70% of the nation's largest banks.† Excludes closing costs. Sources: SIX Financial Information; WSJ Market Data Group; Bankrate.com One year ago 1 3 6 month(s) -9.39 -9.32 -9.32 -9.28 -9.27 11.49 1.99 4.47 1.55 28.34 14.33 15.78 1.80 5.88 3.50 -71.7 28.9 32.1 -40.2 ... WIFI EVFM LEVB Ranked by change from 65-day average* STNL Volume % chg from Latest Session (000) 65-day avg Close % chg 15% 2.25 5 1.50 0 0.75 –5 Euro Yen WSJ Dollar index –10 30 TSEM VGSH 6745 2304 2056 1252 947 0.10 15.45 -9.22 ... -0.02 10.14 31.26 36.69 60.93 50.57 9.60 21.12 22.10 59.74 49.59 870 37.40 -10.31 796 113.25 -0.04 730 146.75 16.39 648 31.69 0.67 616 126.89 -10.74 42.25 130.93 158.66 31.97 157.40 21.45 111.06 102.63 28.70 126.08 9.71 27.50 25.00 59.79 49.62 U.S.-dollar foreign-exchange rates in late New York trading Yen, euro vs. dollar; dollar vs. major U.S. trading partners 10 GPT 52-Week High Low Currencies 2017 Yield (%) Last Week ago 2018 52-Week High Low US$vs, YTDchg Mon in US$ per US$ (%) Total Return (%) 52-wk 3-yr 1425.826 2.815 2.804 2.863 1.818 –0.921 0.555 2.950 3.902 3.310 6.012 3.440 2.568 2.936 3.850 3.290 6.011 3.440 2.644 3.026 3.914 3.340 6.319 3.510 2.653 2.058 –2.689 –0.305 2.879 0.340 2.383 2.380 –0.161 1.252 4.948 2.639 3.316 2.660 –0.133 1.057 1.736 1.475 2.156 771.965 6.482 6.281 6.482 5.279 –0.855 4.011 Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch US$vs, YTDchg Mon in US$ per US$ (%) Country/currency Americas Europe Argentina peso .0456 21.9448 18.0 Brazil real .2816 3.5506 7.2 Canada dollar .7762 1.2883 2.5 Chile peso .001589 629.40 2.3 Ecuador US dollar 1 1 unch Mexico peso .0514 19.4644 –1.0 Uruguay peso .03428 29.1700 1.3 Venezuela b. fuerte .00001568914.9976 666270.1 Czech Rep. koruna Denmark krone Euro area euro Hungary forint Iceland krona Norway krone Poland zloty Russia ruble Sweden krona Switzerland franc Turkey lira Ukraine hryvnia UK pound Asia-Pacific 10-yr Treasury, Ryan ALM 1664.645 DJ Corporate 368.167 Aggregate, Barclays Capital 1900.040 High Yield 100, Merrill Lynch 2850.698 Fixed-Rate MBS, Barclays 1956.190 Muni Master, Merrill 517.213 EMBI Global, J.P. Morgan -0.31 -0.22 -2.14 -0.76 -0.46 CURRENCIES & COMMODITIES Corporate Borrowing Rates and Yields Treasury, Ryan ALM 2.99 2.14 20.82 7.43 4.49 * Common stocks priced at $2 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 3.00 Close SMIT 2,308 307 4,396 100 3,245 29.64 1.16 185.16 0.72 27.50 15.45 3.13 2.62 48.48 1.89 Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Bond total return index 53.6 81.6 17.0 -10.0 -36.0 SCHO 0.00 1 2 3 5 710 years maturity 42.25 21.45 15.40 2.30 9.39 0.95 6.19 3.24 6.50 3.12 XENT Intersect ENT iShares US Consumer Goods IYK ATHN athenahealth Xtrackers MSCI Eurozone DBEZ IFF Intl Flavors Fragrances 3.75% 2.49% 800-288-3425 -4.30 -10.31 -0.50 -10.10 -0.22 -10.02 -0.36 -9.78 -0.33 -9.57 33.05 22.07 187.67 142.20 31.26 21.12 5.87 2.53 63.42 26.85 -40.0 8.5 2303.6 -7.4 -41.2 s 3.00 New car loan Think Mutual Bank Rochester, NY SBGL Symbol Country/currency t 37.40 4.45 1.93 3.32 3.12 45,762 42,017 35,227 33,839 32,400 Compare the performance of selected global stock indexes, bond ETFs, currencies and commodities at WSJ.com/TrackTheMarkets Monday ... -50.0 -80.3 -48.4 -7.6 737 35,227 14,579 3,365 4,069 s 4.00 2.37% 518-436-9043 AGEN 52-Week Low % chg 44.00 1.85 4.50 2.00 17.84 2.65 6.35 2.95 157.40 126.08 Sentinel Energy Svcs Cl A Gramercy Property Trust Tower Semiconductor Vanguard Short-Term Trea Schwab Short Trm US Trsr s 4.50% TrustCo Bank Albany, NY CREG Company Track the Markets 4.24% TCCO High -16.36 -13.73 -11.22 -10.96 -10.74 16.82 -3.29 2.20 -0.35 ASCMA 2.69 -0.34 TA 3.25 -0.40 IFF 126.89 -15.26 1.89 0.03 33.70 1.28 52.08 39.82 15.65 9.04 286.63 235.43 notes and bonds Bankrate.com avg†: NYSE Arca * 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. Latest Session Close Net chg % chg -8.7 0.05 1.31 67,501 60,190 100451.3 4.04 172.97 -24.9 46.16 -0.58 57,168 -10.9 11.59 2.75 53,516 -59.0 266.92 0.34 48,256 * Volumes of 100,000 shares or more are rounded to the nearest thousand t U.S. consumer rates Nasdaq Total volume*1,908,771,225 203,251,412 Adv. volume*1,389,764,583 100,260,165 Decl. volume* 486,134,175 92,210,066 Issues traded 3,003 1,322 Advances 1,770 809 Declines 1,102 487 Unchanged 131 26 New highs 128 34 New lows 25 26 Closing tick 156 6 Closing Arms† 0.56 1.43 Block trades* 7,382 1,199 BVSN Volume Movers Most Active Stocks Benchmark Yields Treasury yield curve and Yield toRates maturity of current bills, Consumer Rates and Returns to Investor Symbol 24.34 21.89 20.19 18.56 17.09 EOLS Company Company 5.65 0.44 1.47 0.49 0.40 28.86 2.45 8.75 3.13 2.74 ORPN Total volume* 756,823,992 8,348,473 Adv. volume* 450,995,341 5,381,985 Decl. volume* 293,352,817 2,848,678 Issues traded 3,080 327 Advances 1,871 167 Declines 1,087 132 Unchanged 122 28 New highs 113 7 New lows 59 4 Closing tick 116 32 Closing Arms† 1.03 0.70 Block trades* 5,964 111 Percentage Losers Latest Session Close Net chg % chg CREDIT MARKETS Interest rate NYSE NYSE Amer. 503.24 0.50 13637.02 11423.53 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 50,000 shares. 589.69 0.21 International Stock Indexes Asia-Pacific Australia China Hong Kong India Japan Singapore South Korea Taiwan Thailand 2872.87 10.8 1995.23 0.79 979.57 0.85 Nasdaq PHLX World 6011.24 5580.55 0.55 26.40 556.91 KBW Bank PHLX§ Semiconductor Cboe Volatility -1.5 8783.74 55.60 52.76 MidCap 400 SmallCap 600 NYSE Composite 15.9 11373.38 -4.04 -0.57 27876.75 27690.00 27764.60 119.44 722.34 714.45 4.44 718.89 Nasdaq Stock Market Nasdaq Composite 7291.74 Nasdaq 100 6846.46 26616.71 20606.93 0.39 -0.08 Late Trading Australian dollar .7515 1.3307 China yuan .1571 6.3668 Hong Kong dollar .1274 7.8497 India rupee .01490 67.130 Indonesia rupiah .0000714 14000 Japan yen .009167 109.09 Kazakhstan tenge .003034 329.56 Macau pataca .1237 8.0841 Malaysia ringgit .2535 3.9440 New Zealand dollar .7016 1.4253 Pakistan rupee .00864 115.732 Philippines peso .0192 51.959 Singapore dollar .7488 1.3354 South Korea won .0009259 1080.03 Sri Lanka rupee .0063488 157.51 Taiwan dollar .03353 29.828 Thailand baht .03140 31.850 Vietnam dong .00004392 22769 Commodities 3.9 –2.1 0.5 5.1 3.8 –3.2 –0.9 0.5 –2.9 1.1 4.6 4.0 –0.1 1.2 2.6 0.5 –2.3 0.3 .04672 21.406 .1600 6.2491 1.1923 .8388 .003790 263.85 .009785 102.20 .1239 8.0703 .2798 3.5740 .01589 62.917 .1132 8.8358 .9973 1.0027 .2343 4.2678 .0379 26.3590 1.3555 .7377 Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand 2.6522 .3771 –0.01 .0565 17.7110 –0.3 .2773 3.6062 3.6 3.3192 .3013 –0.1 2.5890 .3863 0.3 .2746 3.641 –0.2 .2666 3.7503 ... .0797 12.5434 1.5 Close Net Chg % Chg YTD%Chg WSJ Dollar Index 86.33 TR/CC CRB Index Crude oil, $ per barrel Natural gas, $/MMBtu Gold, $ per troy oz. 0.17 0.20 0.41 Sources: Tullett Prebon, WSJ Market Data Group Monday 52-Week Pricing trends on someClose raw materials, or commodities Net chg % Chg High Low DJ Commodity 0.6 0.7 0.7 1.9 –1.3 –1.7 2.7 9.1 7.9 2.9 12.5 –6.3 –0.3 % Chg YTD % chg 653.83 -0.34 -0.05 658.32 532.01 19.27 4.55 203.64 70.73 2.741 1312.20 0.38 1.01 0.03 -0.50 0.19 203.64 70.73 1.45 3.63 1.11 -0.04 1362.40 166.50 42.53 2.55 1208.60 14.32 52.34 -13.59 7.09 5.04 17.06 -7.18 0.45 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 . THE WALL STREET JOURNAL. B8 | Tuesday, May 8, 2018 COMMODITIES Futures Contracts Contract High hilo Low Open Metal & Petroleum Futures Contract High hi lo Low Open 3.0550 3.0850 3.0830 3.1045 3.0450 3.0625 Gold (CMX)-100 troy oz.; $ per troy oz. 1316.30 1321.90 1331.30 1334.30 1356.40 1376.20 June Aug Oct Dec June'19 Dec 1320.10 1326.40 1331.80 1338.00 1356.40 1377.20 1310.60 1316.90 1323.40 1329.70 1351.60 1369.60 Palladium (NYM) - 50 troy oz.; $ per troy oz. 963.00 965.30 June Sept 973.90 968.30 1314.10 1320.40 1326.70 1333.10 1352.70 1372.90 960.60 958.60 Platinum (NYM)-50 troy oz.; $ per troy oz. 912.50 912.40 June July 913.00 920.00 911.80 910.40 Silver (CMX)-5,000 troy oz.; $ per troy oz. 16.490 16.550 May July 16.505 16.600 16.390 16.430 4.85 5.55 16,708 6,003 910.60 913.30 2.90 3.00 45 75,153 70.84 70.73 70.38 69.86 68.19 61.40 1.01 1.04 1.10 1.14 1.16 0.83 393.25 400.75 236.50 252.50 235.25 250.00 236.25 251.00 1025.00 1040.00 1001.25 1010.75 389.60 392.60 389.60 392.60 385.30 382.30 Soybean Oil (CBT)-60,000 lbs.; cents per lb. 30.51 30.70 May July 30.70 30.95 30.51 30.68 1260.00 1295.50 1260.00 1297.50 1252.00 1276.00 515.00 522.25 515.00 524.00 515.00 510.50 531.00 552.25 531.00 553.75 521.75 538.25 ... 621.00 618.25 622.00 .11 1,027 .10 273,445 20 6,575 519.75 –16.00 341 539.50 –16.25 138,987 Wheat (MPLS)-5,000 bu.; cents per bu. May July 384.80 –9.60 1,048 382.50 –11.20 259,126 514.00 –13.50 151 511.50 –14.75 242,767 Wheat (KC)-5,000 bu.; cents per bu. May July 4,682 848 1253.00 –15.00 1277.00 –16.00 Wheat (CBT)-5,000 bu.; cents per bu. May July 1.25 –.50 30.67 30.87 Rough Rice (CBT)-2,000 cwt.; $ per cwt. May July –5.50 2,680 –5.50 828,825 1002.25 –25.00 2,028 1011.50 –25.25 427,332 Soybean Meal (CBT)-100 tons; $ per ton. May July 506,546 308,251 170,017 247,472 298,937 158,311 618.25 608.00 618.25 –11.50 611.00 –12.00 5 32,374 137.625 –2.775 143.700 –2.625 5,849 23,133 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. .0310 132,453 .0325 96,326 May Aug .0200 149,336 .0223 97,391 June Aug .030 .026 .026 .024 .009 .001 1025.00 1034.75 May July 16.413 –0.021 718 16.495 –0.024 142,773 s 69.51 70.73 s 69.42 70.62 s 69.09 70.26 s 68.62 69.76 s 66.98 68.17 s 60.51 61.38 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. June 2.1560 2.1871 s 2.1523 2.1850 July 2.1497 2.1821 s 2.1465 2.1808 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. June 2.1174 2.1409 2.1109 2.1340 July 2.1191 2.1434 2.1139 2.1379 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. June 2.714 2.770 2.695 2.741 July 2.744 2.797 2.722 2.767 Sept 2.730 2.779 2.711 2.755 Oct 2.741 2.789 2.723 2.764 March'19 2.844 2.874 t 2.827 2.851 April 2.556 2.575 t 2.533 2.559 69.83 69.68 69.26 68.71 67.09 60.57 236.00 252.50 140.175 146.175 140.175 146.225 137.425 143.275 Cattle-Live (CME)-40,000 lbs.; cents per lb. 106.050 105.200 106.275 105.200 104.850 103.850 Hogs-Lean (CME)-40,000 lbs.; cents per lb. 66.775 73.525 May June 265,657 208,982 144,780 122,363 88,191 89,381 66.900 74.875 105.175 104.100 66.025 73.075 –.875 128,391 –.975 107,981 66.075 –1.000 74.175 .650 2,346 91,046 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. 603.00 583.10 May July 607.70 s 586.50 s 600.10 582.20 606.00 586.50 Milk (CME)-200,000 lbs., cents per lb. 5.50 10.00 668 5,109 Cash Prices | WSJ.com/commodities Monday, May 7, 2018 These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace— separate from the futures price on an exchange, which reflects what the commodity might be worth in future months. Monday Monday *16.4150 12152 (U.S.$ equivalent) Coins,wholesale $1,000 face-a Energy 0.8778 0.9953 2.710 2.680 2.630 1.990 1.980 1.760 2.580 60.400 12.450 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 Other metals LBMA Platinum Price PM *901.0 Platinum,Engelhard industrial 917.0 Platinum,Engelhard fabricated 1017.0 Palladium,Engelhard industrial 982.0 Palladium,Engelhard fabricated 1082.0 Aluminum, LME, $ per metric ton *2316.0 Copper,Comex spot 3.0595 Iron Ore, 62% Fe CFR China-s 67.0 Shredded Scrap, US Midwest-s,m 381 Steel, HRC USA, FOB Midwest Mill-s 881 Fibers and Textiles Gold, per troy oz 1315.88 1414.57 1312.30 1456.65 *1309.35 *1309.40 1366.25 1379.39 1379.39 1591.93 1290.69 1379.39 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. 16.4600 19.7520 16.5050 20.6310 *£12.1000 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price 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 0.5900 0.8499 *93.25 n.a. 6.05 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, Long Grain Milled, No. 2 AR-u,w Sorghum,(Milo) No.2 Gulf-u n.a. 115 3.7200 136.2 517.5 268 108 315 2.8375 25.75 7.0350 Monday 392.00 9.7100 7.6600 5.0800 5.2050 5.8825 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 Food 202.79 185.79 1.1396 2.3250 165.25 169.25 86.00 n.a. 1.2397 1.4473 0.9150 16.35 n.a. 63.04 n.a. 0.9958 n.a. 168.88 Fats and Oils 29.5000 0.2400 n.a. 0.2922 0.2350 0.2900 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 May 7, 2018 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. Chg From (%) Feb. '18March '17 U.S. consumer price index 249.554 256.610 All items Core 0.23 0.32 2.4 2.1 Latest 52-Week High Low 0.50 0.25 1.50 1.84 1.77 U.S. 2.18 0.76 2.25 2.25 2.25 4.75 4.75 4.75 4.00 3.45 3.45 3.45 2.70 1.475 1.475 1.475 1.475 0.00 0.00 0.00 0.00 Effective rate High Low Bid Offer 1.7300 1.9500 1.6500 1.6800 1.7200 1.7200 1.9500 1.6500 1.6800 1.7100 1.7300 1.9500 1.7100 1.7000 1.7200 Week Latest ago 1.50 0.8600 1.0625 0.7000 0.8200 0.8300 Key Interest Rates 1.650 1.680 1.720 0.695 1.840 1.835 1.840 0.900 2.000 1.990 2.000 1.015 4 weeks 13 weeks 26 weeks 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. Federal funds (effective) 1.70 1.70 0.88 1.85 1.92 2.04 1.82 1.90 2.01 1.86 1.92 2.04 0.83 0.87 0.93 1.78 1.98 2.17 1.82 1.99 2.13 1.85 2.05 2.28 0.94 0.98 1.04 Discount window primary credit 2.25 2.25 2.25 1.50 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 1.67 1.85 2.03 2.24 2.50 2.63 2.79 2.91 2.96 3.02 1.66 1.85 2.03 2.25 2.49 2.63 2.82 2.95 2.99 3.07 52-Week High Low Treasury yields (secondary market) 1.70 Commercial paper Nonfinancial 1-month 2-month 3-month Financial 1-month 2-month 3-month Week Ended May 4 Apr 27 1.71 1.85 2.03 2.25 2.50 2.63 2.82 2.95 2.99 3.07 0.71 0.85 1.00 1.10 1.28 1.40 1.65 1.90 2.07 2.43 1-month 3-month 6-month 1.64 1.81 1.98 1.62 1.81 1.98 1.68 1.81 1.98 0.69 0.84 0.98 0.70 0.78 0.79 0.88 0.90 0.73 0.82 0.82 0.91 0.94 0.73 0.82 0.82 0.94 0.96 0.02 0.23 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. n.a. n.a. n.a. n.a. n.a. n.a. July Sept 2,821 2,751 119.55 122.60 119.55 122.85 118.45 119.90 … s 11.57 … 11.56 24.51 25.19 86.65 85.91 165.00 162.25 165.00 s 165.00 s 165.00 161.80 Currency Futures Japanese Yen (CME)-¥12,500,000; $ per 100¥ .9172 .9192 .9190 .9219 .9154 .9165 .9174 .9194 118.20 120.75 –2.25 143 –1.85 132,510 May June .7785 .7790 .7785 .7795 .7750 .7758 .7769 –.0011 152 .7774 –.0011 115,593 11.32 11.32 –.19 –.19 516,406 May June 1.3554 1.3555 1.3575 1.3600 1.3533 1.3540 1.3565 1.3585 June Sept 1.0029 1.0089 1.0048 1.0129 .9977 1.0061 1.0005 –.0023 1.0088 –.0022 May June July Aug Sept Dec .7539 .7539 .7505 .7505 .7538 .7533 .7539 .7544 .7538 .7540 .7546 .7538 June Sept .05151 .05082 .05169 .05095 t .05086 .05025 .05096 –.00074 207,397 .05025 –.00073 1,338 May June 1.1976 1.1993 1.1976 1.2013 t t 1.1904 1.1931 1.1930 –.0040 2,696 1.1959 –.0040 498,246 24.55 25.19 .04 … 85.99 85.99 2,817 1,756 –.36 26 –.91 143,425 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. May July 165.65 164.60 3.20 2.70 17 10,091 Interest Rate Futures Canadian Dollar (CME)-CAD 100,000; $ per CAD British Pound (CME)-£62,500; $ per £ Swiss Franc (CME)-CHF 125,000; $ per CHF t t Australian Dollar (CME)-AUD 100,000; $ per AUD .7494 .7494 .7499 .7504 .7500 .7533 .7517 .7517 .7518 .7521 .7523 .7531 Mexican Peso (CME)-MXN 500,000; $ per MXN Euro (CME)-€125,000; $ per € Treasury Bonds (CBT)-$100,000; pts 32nds of 100% June Sept 143-150 143-270 142-180 142-310 143-110 142-160 143-180 142-230 –3.0 844,769 –4.0 11,259 June Sept 119-200 119-245 119-090 119-135 119-185 119-080 119-220 119-115 –.5 3,675,165 … 33,709 Mini DJ Industrial Average (CBT)-$5 x index June Sept 113-155 113-177 113-062 113-077 113-142 113-060 113-165 113-072 –.2 3,660,498 –.2 52,064 S&P 500 Index (CME)-$250 x index Treasury Notes (CBT)-$100,000; pts 32nds of 100% 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% June Sept 106-000 106-007 105-262 105-262 105-315 105-255 106-005 105-260 .2 2,046,106 … 20,663 98.298 … 208,592 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. May July 98.298 98.060 98.298 98.065 98.295 Open interest May June 24.51 25.19 87.69 s 88.08 s 87.69 86.90 Chg 71 45 71 137,245 … 11.30 24.51 25.20 Settle 2,870 2,848 Cotton (ICE-US)-50,000 lbs.; cents per lb. May July t 98.055 98.065 .005 307,657 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% 93.109 93.266 93.094 93.141 –.094 29,504 June 1 Month Libor (CME)-$3,000,000; pts of 100% ... ... ... 98.0575 –.0050 2,033 May Eurodollar (CME)-$1,000,000; pts of 100% 97.6300 97.6300 t 97.6250 97.6250 –.0050 342,450 May June 97.6100 97.6150 t 97.6000 97.6050 –.0050 1,683,448 Dec 97.3400 97.3500 t 97.3300 97.3400 –.0050 2,080,418 Dec'19 97.0100 97.0250 97.0000 97.0150 –.0050 1,986,984 .0005 203 .0006 161,086 .0018 1,211 .0018 184,461 93,165 163 –.0019 946 –.0019 156,772 –.0019 626 –.0018 238 –.0019 1,237 –.0018 418 Index Futures June Sept 24226 24270 24425 24428 24204 24226 24301 24313 73 73 99,662 2,358 June Sept 2665.60 ... 2681.00 2686.50 2661.70 2666.50 2670.00 2674.20 6.90 6.70 79,947 16,707 June Sept 2662.75 2667.00 2681.50 2686.00 2661.25 2666.25 2670.00 2674.25 7.00 2,852,359 6.75 101,214 June 1899.70 1917.50 1897.60 1908.00 June Sept 6779.0 6815.0 6851.3 6874.5 6772.3 6798.5 6826.0 6851.0 June 1567.10 1588.40 1566.90 1581.10 14.50 June ... ... ... 1482.00 4.70 60 June Sept 92.42 91.97 92.29 91.85 92.59 92.15 .18 .19 34,471 1,547 Mini S&P 500 (CME)-$50 x index Mini S&P Midcap 400 (CME)-$100 x index Mini Nasdaq 100 (CME)-$20 x index Mini Russell 2000 (ICE-US)-$100 x index Mini Russell 1000 (ICE-US)-$100 x index U.S. Dollar Index (ICE-US)-$1,000 x index 92.83 s 92.36 s 10.30 75,701 51.3 231,469 52.3 10,721 10,147 Source: SIX Financial Information Bonds | WSJ.com/bonds Tracking Bond Benchmarks Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week highs and lows for different types of bonds Total return close YTD total return (%) Yield (%) Latest Low High Index -2.3 Total return close YTD total return (%) Yield (%) Latest Low High Index Mortgage-Backed Bloomberg Barclays Broad Market Bloomberg Barclays 3.310 2.380 3.340 U.S. Aggregate U.S. Corporate Indexes Bloomberg Barclays 1956.19 -1.6 Mortgage-Backed 1923.47 -1.5 Ginnie Mae (GNMA) 3.400 2.630 3.480 3.440 2.660 3.510 2699.63 -3.5 U.S. Corporate 3.970 3.030 3.970 1146.93 -1.6 Fannie mae (FNMA) 3.440 2.670 3.520 2567.58 -2.0 Intermediate 3.660 2.530 3.670 1766.27 -1.7 Freddie Mac (FHLMC) 3.460 2.680 3.530 Long term 4.640 3.990 4.640 517.21 -1.0 Muni Master 2.568 1.736 2.653 552.99 -2.6 Double-A-rated 3.410 2.470 3.430 360.07 -1.5 7-12 year 2.601 1.744 2.702 696.07 -3.4 Triple-B-rated 4.260 3.340 4.260 407.24 -1.2 12-22 year 2.891 2.213 3.004 394.80 -1.4 22-plus year 3.271 2.716 3.411 3670.40 -6.7 High Yield Bonds Merrill Lynch 416.87 -0.2 High Yield Constrained 6.286 5.373 6.417 Global Government J.P. Morgan† Triple-C-rated 9.845 9.607 11.091 541.90 -0.4 2850.70 -0.4 High Yield 100 6.012 4.948 6.319 750.36 -0.6 Canada 2.290 1.570 2.340 377.08 -0.5 Global High Yield Constrained 5.778 4.934 5.788 374.97 1.2 EMU§ 1.085 0.956 1.311 Europe High Yield Constrained 2.899 1.897 2.957 713.66 0.4 France 0.870 0.690 1.040 Germany 0.560 0.330 0.740 1.9 428.25 0.1 306.57 507.21 Global Government 1.570 1.300 1.650 -0.03 1619.10 -1.1 U.S Agency 2.780 1.690 2.800 290.26 0.5 Japan 0.370 0.350 0.460 1453.05 -0.6 10-20 years 2.660 1.510 2.690 560.60 0.01 Netherlands 0.650 0.460 0.830 U.K. 1.620 1.340 1.830 3253.25 -3.9 20-plus years 3.400 2.730 3.460 924.73 2402.28 -2.5 Yankee 3.640 2.610 3.640 771.97 -0.7 -4.5 Emerging Markets ** 6.482 5.279 6.482 *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds ** EMBI Global Index † In local currency § Euro-zone bonds Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan Global Government Bonds: Mapping Yields 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 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 2.375 2.750 4.500 Australia 2 10 0.750 0.000 0.500 0.100 Other short-term rates 1.400 Week ago Latest 52-Week high low 0.100 Latest(l)-2 -1 0 1 l l 2.022 t 2.765 t l l France 2 -0.507 t 10 0.759 t l Germany 2 -0.581 t 10 0.521 t l l l Italy 2 -0.327 t 10 1.769 t l Japan 2 -0.134 s 10 0.046 s l Spain 2 -0.348 t 10 1.271 t 2.000 U.K. 2 0.790 4.250 10 1.400 Yield (%) 3 4 Previous 2 U.S. 2 2.509 s 10 2.947 t 2.250 2.000 l l l l l l Month ago Year ago 2.505 2.951 2.270 2.777 1.310 2.352 2.034 2.039 1.719 2.781 2.668 2.658 -0.485 -0.506 Spread Under/Over U.S. Treasurys, in basis points Latest Prev Year ago -47.1 -48.7 40.9 -18.2 -17.0 30.6 -0.423 -301.6 0.842 -218.9 -299.0 -173.3 -217.1 -151.0 0.780 0.732 -0.578 -0.590 0.546 0.500 -0.680 -309.0 0.420 -242.7 -0.309 -0.319 -0.134 1.797 1.784 2.168 -0.134 -0.145 -0.201 -283.7 -117.8 -264.3 -308.3 -199.0 -240.5 -193.2 -281.4 -144.4 -115.4 -18.4 -263.9 -151.1 0.046 0.041 0.020 -290.1 -290.5 -233.2 -0.341 -0.339 -0.288 -285.7 -284.6 -159.8 1.283 1.220 1.549 0.790 0.862 1.400 1.396 -167.7 -166.8 -80.3 0.145 -171.9 -171.5 -116.6 1.117 -154.8 -155.1 -123.5 Source: Tullett Prebon Call money 3.50 3.50 2.75 Corporate Debt 2.20 90 days 1.95 2.31 1.04 Investment-grade spreads that tightened the most… in that same company’s share price. Libor 1.92770 2.36906 2.52019 2.77666 One month Three month Six month One year 1.90932 2.36294 2.51175 2.77004 1.92770 2.36906 2.52175 2.78031 0.98856 1.17172 1.39906 1.69511 Euro Libor -0.401 -0.353 -0.314 -0.243 One month Three month Six month One year -0.401 -0.356 -0.317 -0.244 -0.397 -0.353 -0.269 -0.138 -0.420 -0.389 -0.339 -0.263 Euro interbank offered rate (Euribor) -0.372 -0.328 -0.269 -0.189 One month Three month Six month One year Latest -0.371 -0.329 -0.269 -0.189 Value Traded -0.366 -0.325 -0.249 -0.123 -0.374 -0.332 -0.279 -0.194 52-Week High Low DTCC GCF Repo Index Treasury MBS 1.766 26.470 2.068 0.791 1.775 113.610 1.971 0.794 Open Implied Settle Change Interest Rate DTCC GCF Repo Index Futures n.a. Country/ Coupon (%) Maturity, in years 1.400 n.a. n.a. State and local bonds 1 month 3 month 6 month 2,822 2,863 3,912 3,642 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. 30-year mortgage yields 30 days 4.191 4.181 4.275 3.253 60 days 4.221 4.210 4.304 3.281 Corporate bonds, Moody's seasoned Aaa Baa 2,821 2,768 .17 .21 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. June July 0.050 Secondary market Commercial paper (AA financial) 52-Week High Low 15.28 15.77 Coffee (ICE-US)-37,500 lbs.; cents per lb. May July 0.000 Treasury bill auction 3.50 Week Ended May 4 Apr 27 —52-WEEK— High Low Fannie Mae Discount Federal funds Policy Rates Euro zone 0.50 0.50 1.50 U.S. government rates Prime rates U.S. Canada Japan —52-WEEK— High Low Overnight repurchase International rates Week ago 0.50 0.50 1.50 0.50 0.50 1.50 Switzerland Britain Australia 15.13 15.55 Contract High hilo Low Open 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 Borrowing Benchmarks | WSJ.com/bonds Money Rates March index level 15.32 15.78 Open interest Chg U.S Agency Bloomberg Barclays Source: WSJ Market Data Group Week Latest ago May July 1900.04 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 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; M=monthly; 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 5/4 Inflation 15.13 15.55 Settle Cocoa (ICE-US)-10 metric tons; $ per ton. 393.25 400.25 Soybeans (CBT)-5,000 bu.; cents per bu. Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. June July Aug Sept Dec Dec'19 397.50 405.75 Oats (CBT)-5,000 bu.; cents per bu. July Dec –0.60 314,224 –0.60 99,372 –0.60 9,221 –0.60 61,266 –0.50 3,388 –0.50 3,655 962.10 959.20 397.25 405.00 May July 3.0595 –0.0060 3,153 3.0790 –0.0065 133,811 Contract High hilo Low Open May June Corn (CBT)-5,000 bu.; cents per bu. Copper-High (CMX)-25,000 lbs.; $ per lb. May July Open interest Chg Agriculture Futures Open Chg interest Settle Settle WSJ.com/commodities Treasury May Treasury Jun Treasury Jly 98.213 unch. 1155 1.787 98.045 unch. 732 1.955 97.935 unch. 464 2.065 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 March 22, 2018. Other prime rates aren’t directly comparable; lending practices vary widely by location; Discount rate is effective March 22, 2018. 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. Federalfunds 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. Spread*, in basis points One-day change Stock Performance Close ($) % chg Issuer Symbol Coupon (%) Bank of America HSBC Holdings Royal Bank of Canada Goldman Sachs BAC HSBC RY GS 4.183 Nov. 25, ’27 4.250 March 14, ’24 3.200 April 30, ’21 3.750 May 22, ’25 142 141 47 106 –17 –14 –13 –12 155 147 60 117 29.64 48.79 76.62 237.20 1.16 –0.39 0.64 0.96 Barclays Georgia–Pacific Apple Citigroup BACR GP AAPL C 6.625 Sept. 15, ’49 8.875 May 15, ’31 2.400 May 3, ’23 3.200 Oct. 21, ’26 199 118 36 117 –10 –9 –8 –8 169 n.a. 47 118 ... ... 185.16 68.50 ... ... 0.72 0.82 71 77 68 60 52.39 88.92 109.37 98.58 1.93 –0.16 0.87 0.23 n.a. 62 57 n.a. 32.82 99.63 … ... 0.58 –0.54 … ... Maturity Current Last week …And spreads that widened the most Morgan Stanley Capital One Financial JPMorgan Chase American Express MS COF JPM AXP 5.450 2.500 2.550 2.200 July 15, ’49 May 12, ’20 Oct. 29, ’20 Oct. 30, ’20 53 76 63 64 Fifth Third Bancorp AbbVie Chubb INA Holdings Unilever Capital FITB ABBV CB UNANA 4.900 Sept. 30, ’49 2.500 May 14, ’20 2.300 Nov. 3, ’20 2.900 May 5, ’27 177 64 53 75 37 29 21 20 19 16 11 9 High-yield issues with the biggest price increases… Issuer Symbol Northern Oil And Gas Genworth Holdings California Resources Noble Holding International NOG GNW CRC NE 8.000 June 1, ’20 4.800 Feb. 15, ’24 5.500 Sept. 15, ’21 7.750 Jan. 15, ’24 Match EP Energy DISH DBS Denbury Resources MTCH EPENEG DISH DNR 5.000 9.375 5.875 5.500 Coupon (%) Maturity Dec. 15, ’27 May 1, ’24 July 15, ’22 May 1, ’22 Bond Price as % of face value Current One-day change 105.250 84.500 86.250 95.500 94.875 77.500 93.000 89.250 2.00 1.75 1.75 4.00 1.63 1.50 1.38 1.25 Last week Stock Performance Close ($) % chg 95.000 n.a. n.a. 93.563 1.88 … 32.09 … 7.43 … 1.61 … 97.750 77.250 92.500 87.250 35.40 ... … 3.42 1.67 ... … 0.59 …And with the biggest price decreases Ashtead Capital Ziggo Bond Finance Builders FirstSource Adient Global Holdings AHTLN ZIGGO BLDR ADNT American Tire Distributors Griffon Iheartcommunications Mallinckrodt International Finance S.A. ATD GFF IHRT MNK 4.125 6.000 5.625 4.875 Aug. 15, ’25 Jan. 15, ’27 Sept. 1, ’24 Aug. 15, ’26 94.500 93.376 98.970 92.250 –0.70 –0.62 –0.53 –0.50 95.250 93.938 n.a. 93.875 ... ... 18.87 56.15 ... ... 1.56 2.11 10.250 March 1, ’22 5.250 March 1, ’22 7.250 Oct. 15, ’27 5.500 April 15, ’25 52.750 99.000 21.500 75.750 –0.50 –0.50 –0.50 –0.50 54.125 100.110 24.000 75.438 ... 22.00 ... … ... 2.09 ... … *Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread. Note: Data are for the most active issue of bonds with maturities of two years or more Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group . THE WALL STREET JOURNAL. Tuesday, May 8, 2018 | B9 BIGGEST 1,000 STOCKS How to Read the Stock Tables The following explanations apply to NYSE, NYSE Arca, NYSE American and Nasdaq Stock Market listed securities. Prices are composite quotations that include primary market trades as well as trades reported by Nasdaq BX (formerly Boston), Chicago Stock Exchange, Cboe, NYSE National and Nasdaq ISE. The list comprises the 1,000 largest companies based on market capitalization. Underlined quotations are those stocks with large changes in volume compared with the issue’s average trading volume. Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous closing price was $2 or higher. Footnotes: s-New 52-week high. t-New 52-week low. dd-Indicates loss in the most recent four quarters. FD-First day of trading. h-Does not meet continued listing standards lf-Late filing q-Temporary exemption from Nasdaq requirements. t-NYSE bankruptcy v-Trading halted on primary market. vj-In bankruptcy or receivership or being reorganized under the Bankruptcy Code, or securities assumed by such companies. Wall Street Journal stock tables reflect composite regular trading as of 4 p.m. and changes in the closing prices from 4 p.m. the previous day. Monday, May 7, 2018 Stock Stock Net Sym Close Chg Net Sym Close Chg Aptiv APTV 93.28 0.69 AquaAmerica WTR 35.36 -0.11 Aramark ARMK 37.05 -0.18 ArcelorMittal MT 34.80 -0.02 ArchCapital ACGL 79.13 0.30 ArcherDaniels ADM 43.69 -0.17 Arconic ARNC 17.56 0.34 AristaNetworks ANET 252.36 7.31 ArrowElec ARW 74.44 0.09 AspenTech AZPN 90.63 0.57 AstraZeneca AZN 35.97 0.39 Athene ATH 46.67 -0.03 s Atlassian TEAM 62.61 2.62 AtmosEnergy ATO 88.86 -0.87 Autodesk ADSK 131.57 2.11 Autohome ATHM 97.24 3.44 Autoliv ALV 139.71 0.17 ADP ADP 125.57 0.21 AutoZone AZO 648.85 -1.09 Avalonbay AVB 165.20 0.85 Avangrid AGR 54.00 -0.26 AveryDennison AVY 105.65 -0.08 AveXis AVXS 217.40 0.39 AxaltaCoating AXTA 31.63 0.11 BB&T BBT 53.73 0.62 BCE BCE 41.49 ... BHPBilliton BHP 47.85 -0.42 BHPBilliton BBL 43.13 -0.12 BOK Fin BOKF 101.90 0.55 s BP BP 45.69 0.35 BT Group BT 16.07 -0.02 BWX Tech BWXT 67.70 1.20 Baidu BIDU 253.90 2.17 BakerHughes BHGE 35.63 -0.37 Ball BLL 38.22 -0.32 BancoBilbaoViz BBVA 8.04 -0.01 BancodeChile BCH 96.52 -0.03 BcoSantChile BSAC 32.44 0.01 BcoSantMex BSMX 6.80 -0.19 BancoSantander SAN 6.39 -0.05 BanColombia CIB 48.05 0.05 BankofAmerica BAC 29.64 0.34 BankofMontreal BMO 76.43 0.17 BankNY Mellon BK 55.59 1.10 BkNovaScotia BNS 61.55 0.16 BankofOzarks OZRK 47.56 0.29 Barclays BCS 11.43 0.07 BarrickGold ABX 13.36 -0.11 BaxterIntl BAX 70.33 -0.05 BectonDicknsn BDX 225.18 0.52 BeiGene BGNE 179.14 -1.77 Berkley WRB 75.15 0.31 BerkHathwy B BRK.B 197.06 1.42 BerkHathwy A BRK.A 2956003000.00 BerryGlobal BERY 49.14 -0.20 BestBuy BBY 75.50 -0.72 Bio-RadLab A BIO 254.75 1.93 Bio-RadLab B BIO.B 258.05 6.40 Biogen BIIB 269.70 -0.64 BioMarinPharm BMRN 86.97 1.59 BlackKnight BKI 49.60 -0.15 BlackBerry BB 10.99 0.15 BlackRock BLK 523.60 3.20 Blackstone BX 31.88 0.07 BlockHR HRB 27.67 0.18 bluebirdbio BLUE 174.40 0.30 Boeing BA 340.43 6.00 BookingHldgs BKNG 2194.96 19.25 BoozAllen BAH 40.04 0.31 BorgWarner BWA 49.19 0.06 BostonProps BXP 124.15 0.11 s BostonSci BSX 29.94 0.39 Braskem BAK 24.35 -0.38 BrightHorizons BFAM 98.85 0.75 BrighthouseFin BHF 50.30 0.57 Bristol-Myers BMY 51.32 -0.01 BritishAmTob BTI 52.41 -0.22 Broadcom AVGO 235.97 5.45 BroadridgeFinl BR 108.45 -0.12 BrookfieldMgt BAM 39.80 ... BrookfieldInfr BIP 39.41 -0.16 Brown&Brown BRO 27.53 0.02 Brown-Forman B BF.B 55.64 -0.22 Brown-Forman A BF.A 53.69 0.27 BuckeyePtrs BPL 39.13 0.40 Bunge BG 69.36 -1.13 A B C ABB ABB 23.68 0.24 ADT ADT 8.44 0.36 AES AES 12.37 0.04 Aflac AFL 44.59 -0.22 AGNC Invt AGNC 19.14 0.09 ANGI Homesvcs ANGI 13.68 0.43 Ansys ANSS 165.73 1.58 ASML ASML 194.88 -0.63 AT&T T 32.04 -0.10 AbbottLabs ABT 59.32 0.58 AbbVie ABBV 99.63 -0.54 s Abiomed ABMD 347.57 -1.71 Accenture ACN 152.30 -1.14 ActivisionBliz ATVI 70.37 0.53 AdobeSystems ADBE 230.99 2.48 AdvanceAuto AAP 116.14 -0.53 AdvMicroDevices AMD 11.59 0.31 Aegon AEG 6.99 -0.04 AerCap AER 54.14 -0.04 Aetna AET 171.40 -0.86 AffiliatedMgrs AMG 162.45 0.73 AgilentTechs A 67.39 0.39 AgnicoEagle AEM 42.77 0.03 AirProducts APD 163.45 0.69 AkamaiTech AKAM 73.12 1.11 AlaskaAir ALK 61.65 -1.15 Albemarle ALB 100.11 0.05 Alcoa AA 54.55 0.16 AlexandriaRlEst ARE 129.80 1.25 AlexionPharm ALXN 118.41 1.60 Alibaba BABA 195.35 6.46 AlignTech ALGN 265.03 6.06 Alkermes ALKS 43.80 0.37 Alleghany Y 575.75 -1.74 Allegion ALLE 75.74 -0.41 Allergan AGN 147.09 -2.21 AllianceData ADS 199.10 2.08 AlliantEnergy LNT 42.94 -0.33 Allstate ALL 95.06 0.54 AllyFinancial ALLY 26.54 0.18 AlnylamPharm ALNY 97.42 5.07 Alphabet C GOOG 1054.79 6.58 Alphabet A GOOGL 1059.46 8.46 Altaba AABA 75.33 2.62 AlticeUSA ATUS 16.89 0.09 Altria MO 55.71 -0.55 AlumofChina ACH 13.87 0.06 Amazon.com AMZN 1600.14 19.19 Ambev ABEV 6.26 -0.07 Amdocs DOX 66.93 0.30 Amerco UHAL 332.08 0.30 Ameren AEE 58.54 -0.36 AmericaMovil A AMOV 17.36 -0.29 AmericaMovil AMX 17.48 -0.27 AmerAirlines AAL 42.44 -0.32 AEP AEP 68.78 -0.61 AmerExpress AXP 98.58 0.23 AmericanFin AFG 110.60 0.63 AmHomes4Rent AMH 20.52 0.03 AIG AIG 53.28 0.44 AmerTowerREIT AMT 138.14 -0.71 AmerWaterWorks AWK 84.80 -0.92 Ameriprise AMP 134.10 -0.47 AmerisourceBrgn ABC 84.69 -1.68 Ametek AME 72.80 1.30 Amgen AMGN 168.06 0.08 Amphenol APH 85.82 0.47 s AnadarkoPetrol APC 66.00 -0.58 AnalogDevices ADI 90.50 0.23 Andeavor ANDV 139.63 -0.13 AndeavorLog ANDX 42.85 0.73 AB InBev BUD 97.64 0.20 AnnalyCap NLY 10.46 0.11 AnteroResources AR 18.25 0.08 Anthem ANTM 229.26 -3.92 Aon AON 140.37 0.88 Apache APA 39.47 -0.02 ApartmtInv AIV 41.21 0.15 ApolloGlbMgmt APO 31.39 0.24 s Apple AAPL 185.16 1.33 ApplMaterials AMAT 52.59 0.03 Aptargroup ATR 92.80 0.54 Stock -3.04 -0.15 -0.48 -0.45 -0.75 -0.99 0.34 0.85 -0.78 0.14 -0.11 0.08 0.06 -0.43 0.19 -0.03 -0.11 0.21 0.53 -1.35 -0.41 0.27 0.30 0.41 0.01 0.44 0.39 -0.43 1.98 0.27 -0.14 -0.24 0.98 0.55 -0.79 -0.64 -0.49 3.45 0.67 0.13 -2.32 -0.15 0.35 -1.16 0.24 -0.51 -0.01 0.82 2.03 0.81 -0.25 0.03 -0.23 -0.02 -0.59 -0.30 -0.08 2.97 -0.12 -0.12 -2.49 0.23 0.19 -0.79 -0.04 -0.16 0.17 1.42 -0.01 -0.21 0.52 0.43 0.56 0.04 1.35 0.54 -0.22 -0.51 -1.00 -0.83 -4.31 -0.89 0.43 -0.03 0.35 -0.47 New Highs and Lows | WSJ.com/newhighs Monday, May 7, 2018 52-Wk % Sym Hi/Lo Chg Stock Highs Abiomed ABMD AdaptimmuneTher ADAP AlliedMotionTech AMOT AmerCarMart CRMT AnadarkoPetrol APC AppFolio APPF Apple AAPL ArborRealty ABR ArgoGroup ARGO AstroNova ALOT Atlassian TEAM Attunity ATTU AxoGen AXGN BP BP Balchem BCPC BankofSC BKSC BankFinancial BFIN BaytexEnergy BTE BioLifeSols BLFS BlinkChargingWt BLNKW BostonSci BSX Bottomline EPAY Box BOX Brightcove BCOV Bristow BRS CNOOC CEO Curo CURO CVR Energy CVI CVR Refining CVRR Cactus WHD CanadaGoose GOOS Cannae CNNE CareDx CDNA CarpenterTech CRS Centene CNC CharterFin CHFN Chegg CHGG CheniereEnergy LNG ChesapeakeLodging CHSP CitrixSystems CTXS Conmed CNMD ConocoPhillips COP ContainerStore TCS Copart CPRT CoreLogic CLGX CoupaSoftware COUP CryoLife CRY CubeSmart CUBE Cubic CUB DSW DSW DenburyRscs DNR DexCom DXCM DigiIntl DGII DraperOakwood DOTA ENI E E*TRADE ETFC Ecology&Envt EEI 8x8 EGHT ElectrumSpec ELEC 354.40 -0.5 13.72 2.5 47.64 -0.3 54.55 1.4 68.75 -0.9 54.90 0.3 187.67 0.7 9.39 2.5 65.90 2.4 19.25 1.9 62.83 4.4 10.41 1.3 43.50 1.5 46.38 0.8 94.20 1.1 22.50 3.7 17.38 2.7 4.62 1.4 8.23 4.4 0.73 250.0 30.16 1.3 49.31 -0.5 25.69 4.6 10.00 0.3 17.36 1.8 173.35 ... 24.40 3.8 39.79 4.5 19.15 9.8 30.19 0.4 38.46 2.8 21.30 0.7 10.88 -0.2 56.28 1.9 117.86 -1.0 24.57 0.6 24.71 2.6 63.97 ... 30.63 1.1 106.92 1.3 67.48 0.9 68.64 -0.1 6.62 5.8 53.43 -0.7 51.40 1.2 51.99 -0.4 25.65 4.3 30.17 0.7 69.30 7.4 23.50 1.8 3.68 0.6 88.09 2.6 12.30 1.7 9.91 0.2 39.83 0.6 62.29 1.1 13.60 2.7 21.80 2.6 10.50 0.5 52-Wk % Sym Hi/Lo Chg Stock EmmisComm EMMS EnantaPharma ENTA Endocyte ECYT EnovaIntl ENVA EnsignGroup ENSG EraGroup ERA Espey ESP EstreAmbiental ESTR Etsy ETSY Everbridge EVBG EvercoreA EVR Evertec EVTC Exponent EXPO ExtraSpaceSt EXR Ezcorp EZPW F5Networks FFIV FederatedNatl FNHC Ferrari RACE 58.com WUBA 51job JOBS FirstChoiceBncp FCBP G1Therapeutics GTHX GWPharm GWPH GluMobile GLUU GoDaddy GDDY GolarLNG GLNG GrafTechIntl EAF HalyardHealth HYH HamiltonLane HLNE HealthEquity HQY Hess HES Hess Pfd HESpA HollyFrontier HFC ICU Medical ICUI IdexxLab IDXX IHSMarkit INFO IcahnEnterprises IEP Illumina ILMN IndustreaAcqn INDUU Infinera INFN InfinityPropCas IPCC Insperity NSP IntegraLifeSci IART IntelligentSys INS InteractiveBrkrs IBKR Intuit INTU Kemper KMPR KeyTronic KTCC Kforce KFRC KindredBiosci KIN KirklandLakeGold KL LegacyReserves LGCY LegacyResPfdA LGCYP LegacyResPfdB LGCYO MalibuBoats MBUU MarathonOil MRO MarlinBusSvcs MRLN MastechDigital MHH Mastercard MA McGrathRentCorp MGRC MelcoResorts MLCO Mutual Funds 5.19 104.97 12.19 31.45 33.45 12.25 29.15 12.75 31.83 40.81 104.70 21.15 89.10 93.54 15.10 170.21 17.87 141.56 89.90 98.36 29.64 48.33 147.50 5.42 66.80 34.56 17.96 54.46 44.75 70.15 61.36 69.14 67.47 265.77 217.89 50.25 72.63 259.27 10.48 12.39 140.05 86.70 65.28 5.50 77.37 191.30 74.50 8.00 32.40 10.15 19.05 6.48 12.40 10.98 41.74 20.86 31.95 15.99 189.52 62.85 32.95 10.5 3.6 5.5 1.5 2.4 0.4 0.1 3.1 2.7 -1.1 1.4 2.7 0.7 1.4 1.0 0.6 0.5 2.2 1.4 3.6 1.7 7.7 3.3 -1.3 0.7 ... 8.7 -1.0 1.9 -0.1 0.9 1.3 -0.7 2.1 -2.2 1.6 4.2 4.9 0.8 0.7 2.6 3.1 0.9 ... 2.4 0.1 3.8 0.6 2.4 -1.5 1.3 4.5 -0.4 1.0 2.9 0.3 -3.0 6.2 0.5 2.1 0.4 52-Wk % Sym Hi/Lo Chg MellanoxTech MLNX MeritMedical MMSI Microsemi MSCC Mimecast MIME Mindbody MB MomentaPharm MNTA MudrickCap MUDSU Napco Security NSSC NRG Energy NRG Nanometrics NANO NatlEnerSvsWt NESRW NavigantConsult NCI Neogen NEOG Nevro NVRO NevsunRscs NSU NoahHoldings NOAH Novocure NVCR NuSkinEnts NUS Nutanix NTNX Nuvectra NVTR OCI Partners OCIP ONEOK OKE OaktreeSpecNts24 OSLE OccidentalPetrol OXY OcwenFinancial OCN OhioValleyBanc OVBC Okta OKTA Oppenheimer A OPY PBF Energy PBF PDC Energy PDCE PHI NV PHIIK PTC PTC PaloAltoNtwks PANW ParsleyEnergy PE Pearson PSO Pegasystems PEGA PennVirginia PVAC Penumbra PEN Perma-Fix PESI Phillips66 PSX PioneerEnerSvcs PES PivotalSoftware PVTL PlanetFitness PLNT PlayAGS AGS PlumasBancorp PLBC PureStorage PSTG RLI RLI R1RCM RCM Radware RDWR Rapid7 RPD RealPage RP RedHat RHT RegionalMgmt RM RexfordIndlRealty REXR RingEnergy REI RuthsHospitality RUTH RymanHospitality RHP SRC Energy SRCI SVB Fin SIVB Sabre SABR SailPointTechs SAIL SantanderCons SC 83.30 1.5 51.25 1.4 68.05 3.3 40.88 3.2 45.50 1.7 21.75 3.4 10.28 ... 11.95 8.3 34.38 2.6 35.73 -0.1 1.15 -3.89551938464967E-14 22.50 4.3 72.15 0.6 94.34 -0.3 3.02 0.7 58.75 5.8 28.25 0.4 76.77 0.9 57.02 2.4 17.25 4.5 9.90 1.5 64.76 1.0 25.50 1.0 79.31 -0.6 4.84 1.1 47.00 1.0 47.90 2.8 29.10 3.0 39.89 -1.3 61.05 3.6 13.39 0.2 86.80 1.7 199.70 1.6 33.06 0.7 12.21 0.4 64.90 0.4 48.73 -0.4 140.55 3.3 4.55 ... 117.99 -0.2 4.85 2.2 19.10 3.1 41.67 2.5 24.04 2.8 29.45 -1.0 22.84 7.7 66.00 1.3 8.61 5.9 23.35 1.9 31.43 2.9 61.10 2.8 169.20 1.6 36.28 2.6 32.91 2.6 17.32 2.4 28.75 -1.9 80.07 0.5 12.05 2.6 309.48 0.5 25.00 -0.6 26.92 1.2 19.25 0.9 Data provided by e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e and s apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 12b-1. r-Redemption charge may apply. s-Stock split or dividend. t-Footnotes p and r apply. v-Footnotes x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to incomplete price, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. Fund Net YTD NAV Chg %Ret Fund American Century Inv 46.32 +0.24 Ultra American Funds Cl A 33.18 +0.16 AmcpA p AMutlA p 40.01 +0.06 26.91 +0.05 BalA p 12.51 ... BondA p 60.68 +0.01 CapIBA p CapWGrA 51.85 +0.05 56.97 +0.08 EupacA p 62.48 +0.29 FdInvA p 52.40 +0.31 GwthA p 10.17 +0.01 HI TrA p 40.23 +0.10 ICAA p 22.78 +0.02 IncoA p 44.79 +0.16 N PerA p 47.94 +0.18 NEcoA p NwWrldA 67.08 +0.06 SmCpA p 57.31 +0.21 TxExA p 12.80 +0.01 WshA p 45.44 +0.13 Baird Funds 6.7 AggBdInst US Small ... -2.3 US SmCpVal ... -2.2 US TgdVal USLgVa 10.53 10.87 BlackRock Funds A GlblAlloc p 19.56 +0.02 BlackRock Funds Inst EqtyDivd 22.34 ... GlblAlloc 19.69 +0.02 StratIncOpptyIns 9.81 -0.03 Bridge Builder Trust NA ... CoreBond Dimensional Fds NA ... 5GlbFxdInc EmgMktVa 31.48 -0.12 EmMktCorEq 22.91 -0.07 IntlCoreEq 14.68 +0.01 IntlVal 20.72 ... IntSmCo 21.51 +0.03 IntSmVa 22.94 ... US CoreEq1 22.90 +0.09 US CoreEq2 21.53 +0.09 CorBdInst 5.4 -1.5 -0.5 -2.2 -2.6 1.8 1.3 0.7 5.8 ... ... -1.8 3.8 7.4 0.2 2.7 -0.9 ... NAV Chg %Ret Fund Net YTD NAV Chg %Ret 36.25 +0.25 38.21 +0.25 24.92 +0.13 38.10 +0.08 1.0 0.8 0.3 -2.2 -0.7 Dodge & Cox Balanced -1.5 GblStock -0.6 Income -0.4 Intl Stk Stock NA NA 0.8 -1.3 1.0 1.3 1.1 -0.1 0.7 ... 104.12 +0.41 -1.1 13.60 +0.08 -1.9 13.44 ... -1.4 45.96 +0.19 -0.8 199.27 +1.17 -0.7 DoubleLine Funds ... -1.4 CoreFxdIncmI 10.71 NA ... NA TotRetBdI Edgewood Growth Instituti ... NA EdgewoodGrInst NA Fidelity 500IdxInst 93.48 +0.32 0.6 500IdxInstPrem 93.48 +0.32 0.6 500IdxPrem 93.48 +0.33 0.6 ExtMktIdxPrem r 63.56 +0.52 2.5 IntlIdxPrem r 43.50 +0.05 0.8 Net Sym Close Chg Stock 0.45 FiatChrysler FCAU 22.84 2.52 FibriaCelulose FBR 19.29 -0.09 FidNatlFin FNF 37.71 -0.89 FidNatlInfo FIS 102.21 2.52 FifthThirdBncp FITB 32.82 JOBS 97.09 0.26 s 51job -0.99 FirstAmerFin FAF 52.64 FDC 19.19 -0.38 FirstData -0.12 FirstHorizonNatl FHN 18.51 8.14 FirstRepBank FRC 95.91 -2.13 FirstSolar FSLR 67.15 0.17 FirstEnergy FE 34.13 FISV 70.41 0.58 Fiserv 2.96 FleetCorTech FLT 203.07 FLEX 14.08 0.12 Flex -0.75 FlirSystems FLIR 54.44 -0.76 Flowserve FLS 46.39 FLR 44.49 0.85 Fluor 0.73 FomentoEconMex FMX 88.95 0.41 FordMotor F 11.34 Fortinet FTNT 55.69 Fortis FTS 33.63 Fortive FTV 73.54 0.28 FortBrandsHome FBHS 55.02 0.51 Franco-Nevada FNV 74.13 -0.53 FranklinRscs BEN 33.49 -0.65 FreeportMcM FCX 15.26 -0.62 FreseniusMed FMS 50.18 -0.92 -0.36 2.92 -0.46 GGP GGP 20.11 -0.44 Gallagher AJG 69.02 -3.07 Gaming&Leisure GLPI 34.64 GPS 28.35 ... Gap 0.02 GardnerDenver GDI 32.05 2.13 Garmin GRMN 59.37 0.06 Gartner IT 123.79 2.94 Gazit-Globe GZT 9.47 0.27 GeneralDynamics GD 196.45 0.97 GeneralElec GE 14.07 -2.25 GeneralMills GIS 42.34 0.23 GeneralMotors GM 36.34 GNTX 22.79 0.25 Gentex 1.33 GenuineParts GPC 89.80 GGB 4.55 0.22 Gerdau GIL 28.93 0.70 Gildan -1.55 GileadSciences GILD 64.88 GSK 39.85 -0.81 GSK -0.49 GlobalPayments GPN 113.65 GDDY 66.23 2.26 s GoDaddy GG 13.52 1.04 Goldcorp 0.22 GoldmanSachs GS 237.20 GT 25.16 1.05 Goodyear GGG 45.11 0.45 Graco GWW 289.37 0.38 Grainger 0.28 GreatPlainsEner GXP 32.83 GRFS 21.38 -0.38 Grifols GRUB 101.68 0.49 GrubHub 0.24 GpoAvalAcc AVAL 8.65 -0.77 GpoFinGalicia GGAL 50.10 1.05 GrupoTelevisa TV 17.61 0.77 Guidewire GWRE 89.34 0.68 HCA Healthcare HCA 97.62 HCP 23.78 0.98 HCP 0.42 HDFC Bank HDB 96.65 0.27 HD Supply HDS 38.82 HPQ 21.79 -0.17 HP HSBC 48.79 0.70 HSBC -0.20 Halliburton HAL 52.03 0.40 Hanesbrands HBI 16.84 -0.67 HarleyDavidson HOG 40.75 HRS 149.88 -0.60 Harris 1.32 HartfordFinl HIG 52.63 HAS 88.03 0.28 Hasbro HEI.A 74.50 0.88 Heico A HEI 90.58 0.18 Heico -0.03 Helm&Payne HP 68.67 0.27 HenrySchein HSIC 76.27 HSY 91.66 -0.02 Hershey HES 59.22 ... s Hess 0.18 HewlettPackard HPE 17.30 HXL 67.74 0.10 Hexcel HRC 87.52 0.23 Hill-Rom HLT 81.35 0.25 Hilton -0.65 s HollyFrontier HFC 65.60 HOLX 36.92 -0.17 Hologic 0.54 HomeDepot HD 183.56 -9.72 HondaMotor HMC 33.22 0.11 Honeywell HON 144.16 0.40 HormelFoods HRL 35.53 0.45 DR Horton DHI 44.99 -1.95 HostHotels HST 20.12 -0.98 HuanengPower HNP 26.66 HUBB 104.76 -0.31 Hubbell HUM 283.77 -0.24 Humana JBHT 118.10 0.22 JBHunt 0.83 HuntingtonBcshs HBAN 14.73 0.43 HuntingIngalls HII 215.84 -0.53 Huntsman HUN 29.39 1.25 HyattHotels H 79.08 0.84 IAC/InterActive IAC 135.87 1.07 ICICI Bank IBN 8.83 IDXX 207.53 0.39 s IdexxLab 1.36 s IHSMarkit INFO 50.16 1.79 ING Groep ING 16.62 IVZ 28.47 0.75 Invesco 0.12 IPG Photonics IPGP 233.98 IQV 98.17 -1.82 IQVIA 3.06 s IcahnEnterprises IEP 71.80 SareptaTherap SRPT Seaspan SSW ServiceMaster SERV ServiceNow NOW SimulationsPlus SLP SiriusXM SIRI SoundFinBancorp SFBC StaarSurgical STAA Stamps.com STMP StarsGroup TSG StateAutoFin STFC StateBankFin STBZ SteinMart SMRT Strats WlMrt GJO GJO SuncorEnergy SU Surmodics SRDX Syntel SYNT Sysco SYY TPG PaceEnergy TPGE.U TPGPaceEnergyWt TPGE.WS TPIComposites TPIC TabulaRasaHlth TRHC Talend TLND TejonRanch TRC Tenaris TS TenetHealthcare THC TerrenoRealty TRNO TexasPacLand TPL TiberiusAcqn TIBR TownSports CLUB TransGlobeEner TGA Truett-Hurst THST TurtleBeach HEAR UltSoftware ULTI UtdCmntyBcp UCBA USBrentOilFd BNO USComdtyIndxFd USCI USDieselHeatingOil UHN UnitedStatesOilFd USO US12moOilFd USL UsanaHealth USNA VASCO VDSI Visa V VaalcoEnergy EGY ValeroEnergy VLO Vectren VVC Verso VRS ViperEnergyPtrs VNOM VistraEnergyWt VST.WS.A Vonage VG W&T Offshore WTI WEX WEX WPX Energy WPX WPX Energy Pfd WPXP WasteConnections WCN WebsterFin WBS WeycoGroup WEYS WhitingPetrol WLL WildHorseResource WRD Workiva WK WW Ent WWE XO Group XOXO XeniaHotels XHR Zendesk ZEN 92.98 8.64 55.57 176.89 18.55 6.75 37.95 22.88 244.15 33.80 32.00 32.86 2.72 22.90 38.96 42.90 29.65 64.77 11.15 2.25 26.87 43.36 56.80 25.92 39.48 32.17 39.27 677.15 9.70 11.39 2.01 2.50 7.48 259.33 25.90 21.25 44.61 20.68 14.30 24.80 110.95 16.40 129.52 1.25 115.48 70.76 19.75 31.63 1.03 11.81 7.35 172.19 18.50 76.75 75.01 62.68 38.25 46.95 27.84 27.60 42.08 28.51 22.90 54.53 0.5 5.0 1.7 2.8 1.6 0.6 1.1 1.1 1.2 0.9 0.3 0.2 -4.6 1.6 0.1 2.2 -0.3 1.9 0.1 1.9 2.8 0.2 3.5 1.7 0.6 2.4 1.5 3.6 0.6 -0.9 4.5 20.3 14.5 2.3 -0.8 0.5 ... 0.7 0.1 0.5 1.8 2.2 0.9 7.2 0.2 0.2 0.7 1.2 4.0 1.9 4.8 1.8 1.4 3.6 0.8 0.9 0.6 0.9 3.5 2.5 2.6 3.8 1.9 0.7 Lows ADOMANI ADOM 0.50 25.4 0.66 -6.9 AcastiPharma ACST 109.98 -1.7 AcuityBrands AYI 3.26 -6.5 AmiraNatureFoods ANFI SAIUSLgCpIndxFd TMktIdxF r TMktIdxPrem USBdIdxInstPrem 0.6 0.9 0.9 -2.3 5.2 ... 0.1 0.3 ... 0.1 0.3 0.7 0.7 1.1 7.1 6.3 6.4 ... -0.8 8.4 8.4 -2.1 -2.0 ... 3.1 7.7 0.9 -1.7 8.8 0.2 0.2 TotalBond 0.33 0.08 0.28 -0.45 -0.02 -0.52 0.77 0.03 1.38 -0.03 -0.20 -0.37 -0.17 -0.12 -0.16 0.33 -0.54 0.03 0.80 0.45 0.05 2.26 -0.12 -0.07 2.60 -0.35 0.45 2.90 -0.08 -2.20 0.13 1.15 0.07 0.34 0.11 -0.35 0.11 -0.19 -0.16 0.03 -0.25 0.04 -0.10 1.16 1.00 2.18 -1.23 0.72 -0.12 0.51 0.09 0.78 0.55 0.19 -0.45 -1.01 -1.47 -0.25 0.27 -0.24 0.28 0.28 -0.46 0.79 -3.62 0.68 0.03 5.18 -0.19 0.62 3.45 0.36 -4.67 0.79 ... 0.08 0.62 -0.85 2.88 52-Wk % Sym Hi/Lo Chg AngloGoldAsh AU AscentCapital A ASCMA BancoMacro BMA BancoSantPfd4 SANpA BigLots BIG BiglariB BH BioTimeWt BTX.WS BlueCapReins BCRH BoardwalkPipe BWP BridgelineDigital BLIN CSS Industries CSS Celgene CELG Cemex CX CentralPuerto CEPU ClearOne CLRO Coca-Cola Femsa KOF ColgatePalm CL CommandSec MOC Volaris VLRS CorpAmAirports CAAP Cresud CRESY DentsplySirona XRAY EnbridgeEnergy EEQ EnbridgeEnPtrs EEP FederatedInvest FII GGP PfdA GGPpA GamingPartners GPIC GemphireTherap GEMP Gogo GOGO GrayTelevision A GTN.A GpoAeroportSur ASR HSBC Pfd2 HSEB HSBCPfd HSEA HerculesCapNts24 HTGX IRSA Prop IRCP InterlinkElec LINK IntlFlavors IFF iPicEnt IPIC KimcoRealtyPfdL KIMpL KimcoRealtyPfdM KIMpM KimcoRealtyPfdI KIMpI KimcoRealtyPfdJ KIMpJ KimcoRealtyPfdK KIMpK L Brands LB LomaNegra LOMA MercurySystems MRCY Multi-Color LABL NY CmntyBcp NYCB NorwegCruise NCLH OrchidsPaper TIS OxfordSquareNt OXSQL PLDT PHI PampaEnergia PAM ProAssurance PRA QuadGraphics QUAD RR Donnelley RRD RegenPharm REGN Sibanye-Stillwater SBGL SpiritRealtyPfdA SRCpA TESARO TSRO TatTechnologies TATT TVA Parrs TVE TowerSemi TSEM TremontMortgage TRMT TurkcellIletism TKC UltraparPart UGP US ShortOilFd DNO UnityBiotech UBX WintrustFinPfd WTFCM Zuora ZUO Net YTD NAV Chg %Ret Fund 14.36 +0.04 76.79 +0.33 76.79 +0.33 11.22 ... Fidelity Advisor I NwInsghtI 32.98 +0.20 Fidelity Freedom 16.57 +0.03 FF2020 14.41 +0.02 FF2025 18.11 +0.04 FF2030 Freedom2020 K 16.55 +0.03 Freedom2025 K 14.39 +0.03 Freedom2030 K 18.09 +0.04 Freedom2035 K 15.31 +0.04 Freedom2040 K 10.76 +0.03 Fidelity Invest 23.91 +0.09 Balanc 93.97 +0.78 BluCh 128.23 +0.94 Contra 128.19 +0.94 ContraK 10.17 +0.02 CpInc r 39.69 +0.09 DivIntl 193.65 +2.25 GroCo GrowCoK 193.68 +2.25 7.69 ... InvGB 10.92 ... InvGrBd 54.52 +0.01 LowP r 107.80 +0.59 MagIn 118.32 +1.27 OTC 23.55 +0.06 Puritn SrsEmrgMkt 21.04 +0.01 SrsGroCoRetail 18.10 +0.21 SrsIntlGrw 16.19 +0.02 10.71 +0.01 SrsIntlVal -0.08 -0.22 -0.25 1.55 0.19 3.33 0.18 0.11 0.10 1.02 0.78 0.02 0.69 3.03 -0.03 -0.08 0.65 -1.27 -1.51 -0.02 0.95 -0.13 0.25 -0.34 0.51 0.63 -0.16 0.14 G H I 52-Wk % Sym Hi/Lo Chg Stock Fund Top 250 mutual-funds listings for Nasdaq-published share classes by net assets. Monday, May 7, 2018 Net YTD D E F DCT Industrial DCT 66.34 DISH Network DISH 33.90 DTE Energy DTE 104.15 DXC Tech DXC 101.36 Danaher DHR 99.58 Darden DRI 91.91 DaVita DVA 66.02 Deere DE 140.22 DellTechs DVMT 72.49 DeltaAir DAL 51.90 t DentsplySirona XRAY 46.92 DeutscheBank DB 13.78 DevonEnergy DVN 37.89 s DexCom DXCM 85.59 Diageo DEO 143.61 DiamondbkEner FANG 130.24 DigitalRealty DLR 106.66 DiscoverFinSvcs DFS 71.84 DiscoveryB DISCB 30.75 DiscoveryA DISCA 23.39 DiscoveryC DISCK 22.13 Disney DIS 102.48 DocuSign DOCU 41.31 DolbyLab DLB 61.79 DollarGeneral DG 94.00 DollarTree DLTR 92.80 DominionEner D 65.08 Domino's DPZ 250.50 Donaldson DCI 46.32 DouglasEmmett DEI 38.76 Dover DOV 92.56 DowDuPont DWDP 64.92 DrPepperSnap DPS 119.09 Dropbox DBX 29.41 DukeEnergy DUK 79.50 DukeRealty DRE 28.41 s ENI E 39.43 EOG Rscs EOG 113.89 EPAM Systems EPAM 117.95 EQT EQT 49.40 s E*TRADE ETFC 62.15 EXACT Sci EXAS 50.59 EastWestBncp EWBC 67.82 EastmanChem EMN 105.07 Eaton ETN 74.70 EatonVance EV 55.76 eBay EBAY 37.80 Ecolab ECL 145.79 Ecopetrol EC 21.42 EdisonInt EIX 63.09 EdwardsLife EW 136.09 ElectronicArts EA 123.92 EmersonElec EMR 69.30 Enbridge ENB 31.56 Encana ECA 13.13 EncompassHealth EHC 63.15 EnelAmericas ENIA 10.67 EnelChile ENIC 5.96 EnelGenChile EOCC 23.39 Energen EGN 63.68 EnergyTransferEq ETE 16.52 EnergyTransfer ETP 17.75 Entergy ETR 81.55 EnterpriseProd EPD 26.54 Equifax EFX 113.00 Equinix EQIX 394.16 EquityLife ELS 90.12 EquityResdntl EQR 62.50 EssexProp ESS 241.62 EsteeLauder EL 133.79 EverestRe RE 226.54 EversourceEner ES 58.73 Exelixis EXEL 22.21 Exelon EXC 41.30 Expedia EXPE 110.95 ExpeditorsIntl EXPD 63.97 ExpressScripts ESRX 69.69 s ExtraSpaceSt EXR 93.44 ExxonMobil XOM 77.74 s F5Networks FFIV 169.20 FMC FMC 87.82 Facebook FB 177.97 FactSet FDS 191.50 Fastenal FAST 51.40 FederalRealty FRT 118.85 FedEx FDX 243.12 s Ferrari RACE 140.39 Stock The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE American and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in the latest session. % CHG-Daily percentage change from the previous trading session. Stock ConagraBrands CAG 37.37 ConchoRscs CXO 155.27 s ConocoPhillips COP 66.77 ConEd ED 78.36 ConstBrands A STZ 223.80 ContinentalRscs CLR 64.66 Cooper COO 225.57 s Copart CPRT 52.44 Corning GLW 26.96 CoStar CSGP 386.01 Costco COST 193.06 Coty COTY 16.24 Credicorp BAP 228.60 CreditAcceptance CACC 325.67 CreditSuisse CS 16.46 CrownCastle CCI 102.56 CrownHoldings CCK 45.44 Ctrip.com CTRP 42.03 Cullen/Frost CFR 116.00 Cummins CMI 144.96 Net Sym Close Chg BurlingtonStrs BURL 135.61 CA CA 34.56 CBD Pao CBD 21.11 CBRE Group CBRE 46.28 CBS B CBS 52.42 CBS A CBS.A 52.61 CDK Global CDK 65.00 CDW CDW 76.37 CF Industries CF 37.73 CGI Group GIB 60.01 CH Robinson CHRW 82.43 CIT Group CIT 53.04 CME Group CME 159.22 CMS Energy CMS 46.02 CNA Fin CNA 49.02 s CNOOC CEO 170.89 CPFLEnergia CPL 12.77 CRH CRH 36.28 CSX CSX 60.50 CVS Health CVS 61.75 CabotOil COG 23.02 CadenceDesign CDNS 41.07 CaesarsEnt CZR 12.05 CamdenProperty CPT 86.85 CampbellSoup CPB 41.03 CIBC CM 87.94 CanNtlRlwy CNI 78.65 CanNaturalRes CNQ 35.11 CanPacRlwy CP 183.38 Canon CAJ 34.71 CapitalOne COF 88.92 CardinalHealth CAH 52.77 Carlisle CSL 108.26 Carlyle CG 22.00 CarMax KMX 64.17 Carnival CCL 62.93 Carnival CUK 64.62 Caterpillar CAT 149.82 CboeGlobalMkts CBOE 103.16 Celanese A CE 108.54 t Celgene CELG 84.57 t Cemex CX 5.81 CenovusEnergy CVE 10.48 s Centene CNC 115.49 CenterPointEner CNP 26.63 CentraisElBras EBR 5.17 CenturyLink CTL 18.48 Cerner CERN 58.06 CharterComms CHTR 278.10 CheckPoint CHKP 99.47 Chemours CC 50.42 s CheniereEnergy LNG 62.49 CheniereEnerPtrs CQP 31.17 CheniereEnHldgs CQH 28.34 Chevron CVX 124.94 ChinaEastrnAir CEA 40.82 ChinaLifeIns LFC 13.95 ChinaLodging HTHT 144.36 ChinaMobile CHL 46.94 ChinaPetrol SNP 97.27 ChinaSoAirlines ZNH 53.93 ChinaTelecom CHA 48.39 ChinaUnicom CHU 13.92 Chipotle CMG 419.62 Chubb CB 132.71 ChunghwaTel CHT 37.36 Church&Dwight CHD 47.52 Cigna CI 172.59 CimarexEnergy XEC 97.30 CincinnatiFin CINF 69.80 Cintas CTAS 175.75 CiscoSystems CSCO 45.73 Citigroup C 68.50 CitizensFin CFG 41.07 s CitrixSystems CTXS 106.58 Clorox CLX 120.83 Coca-Cola KO 42.14 Coca-Cola Euro CCE 37.88 t Coca-Cola Femsa KOF 60.53 Cognex CGNX 46.34 CognizantTech CTSH 77.86 t ColgatePalm CL 62.82 Comcast A CMCSA 32.39 Comerica CMA 94.05 CommerceBcshrs CBSH 64.33 SABESP SBS 9.12 Net Sym Close Chg Stock 8.50 -3.8 2.65 -11.2 80.86 -2.3 24.97 ... 40.63 -0.7 195.09 -4.3 0.02 -3.0 10.80 0.5 9.24 -3.1 1.49 -3.6 15.97 -1.4 84.21 -2.7 5.77 -2.5 12.56 -4.6 5.76 ... 60.02 -1.6 62.79 -1.4 1.82 -0.9 5.54 -4.4 11.03 -0.4 17.26 -4.0 46.00 -6.1 8.44 0.2 8.94 0.2 24.42 -1.5 24.30 -0.4 8.33 -1.8 4.75 -3.9 7.86 -5.6 9.65 -2.0 164.65 -1.4 25.38 -2.8 25.21 -4.1 25.01 -0.2 39.00 ... 4.10 -7.9 126.08 -10.7 7.50 -8.4 20.04 -0.8 20.24 -0.6 23.77 -0.4 21.28 -0.5 21.90 ... 33.35 -0.9 17.70 -0.6 30.11 4.1 61.50 -0.9 11.65 -1.2 50.16 -2.3 5.05 -8.5 25.10 -0.4 25.86 -0.8 50.33 -3.8 39.90 2.0 17.73 2.4 6.37 0.2 286.32 -0.9 3.12 -9.6 20.25 -1.1 45.89 -6.0 8.00 -1.2 24.65 -0.2 22.10 -9.2 11.71 -0.6 7.38 -3.6 14.95 -1.3 47.15 -1.4 16.03 -2.4 26.66 0.3 18.75 -1.5 Net Sym Close Chg Stock J K L R S O P Q M N Dividend Changes Company Dividend announcements from May 7. Foreign Company -0.5 -1.6 -1.4 -1.7 -1.7 -1.9 1.0 -1.2 1.0 8.4 1.2 NA -1.2 Symbol Amount Yld % New/Old Frq Arbor Realty Trust Barnes Group Community Healthcare Tr ManpowerGroup Marriott International Sabine Royalty Tr UBI ABR B CHCT MAN MAR SBR 10.6 .25 /.21 Q 1.1 .16 /.14 Q 5.9 .40 /.3975 Q 2.1 1.01 /.93 SA 1.2 .41 /.33 Q 7.3 .2844 /.27934 M May31 /May15 Jun08 /May25 Jun01 /May18 Jun15 /Jun01 Jun29 /May18 May29 /May15 ACET CHKR 1.4 .01 /.065 Q 12.1 .0469 /.0787 Q Jun22 /Jun08 May31 /May21 Reduced Aceto Chesapeake Granite Wash Initial PermRock Royalty Trust PRT .35091 Net Sym Close Chg Stock SeattleGenetics SGEN 54.05 SemicondctrMfg SMI 6.77 SempraEnergy SRE 110.68 ServiceCorp SCI 36.42 s ServiceMaster SERV 55.35 s ServiceNow NOW 176.02 ShawComm B SJR 20.19 SherwinWilliams SHW 378.65 ShinhanFin SHG 43.47 Shire SHPG 161.39 Shopify SHOP 138.56 SignatureBank SBNY 129.45 SimonProperty SPG 159.77 s SiriusXM SIRI 6.71 Skyworks SWKS 95.34 SmithAO AOS 62.71 Smith&Nephew SNN 35.82 Smucker SJM 112.65 Snap SNAP 10.74 SnapOn SNA 146.60 SOQUIMICH SQM 53.30 Sony SNE 47.44 Southern SO 45.45 SoCopper SCCO 52.08 SouthwestAir LUV 52.00 SpectraEnerPtrs SEP 31.50 SpiritAeroSys SPR 83.52 Splunk SPLK 109.94 Spotify SPOT 150.00 Sprint S 5.24 Square SQ 51.12 StanleyBlackDck SWK 139.13 Starbucks SBUX 57.45 StateStreet STT 98.50 Statoil STO 25.64 SteelDynamics STLD 46.40 STMicroelec STM 23.77 Stryker SYK 167.48 SumitomoMits SMFG 8.23 SunComms SUI 94.70 SunLifeFinancial SLF 40.99 s SuncorEnergy SU 38.43 SunTrustBanks STI 66.82 Symantec SYMC 28.44 SynchronyFin SYF 32.72 Synopsys SNPS 89.00 SynovusFin SNV 53.06 s Sysco SYY 63.48 Symbol May30 /May15 AHLpD AHLpC AHL AXS AXSpD BSIG BIP CEA CZZ FDP PAC GGAL PBA PRGO TS VRpA VRpB Net Sym Close Chg Stock UDR UDR 36.42 UGI UGI 48.39 US Foods USFD 33.72 USG USG 41.82 UltaBeauty ULTA 253.07 s UltSoftware ULTI 258.07 t UltraparPart UGP 14.97 UnderArmour A UAA 17.87 UnderArmour C UA 16.25 Unilever UN 55.10 Unilever UL 54.00 UnionPacific UNP 134.90 UnitedContinental UAL 67.52 UnitedMicro UMC 2.64 UPS B UPS 112.12 UnitedRentals URI 159.49 US Bancorp USB 50.36 US Steel X 34.51 UnitedTech UTX 120.89 UnitedHealth UNH 233.78 UniversalHealthB UHS 117.38 UnumGroup UNM 39.61 VEREIT VER 6.99 VF VFC 76.47 VICI Prop VICI 18.16 s Visa V 129.26 VailResorts MTN 228.24 Vale VALE 13.85 ValeantPharm VRX 18.16 s ValeroEnergy VLO 113.67 VarianMed VAR 117.50 s Vectren VVC 70.43 Vedanta VEDL 17.13 VeevaSystems VEEV 73.57 Ventas VTR 53.35 VeriSign VRSN 122.42 VeriskAnalytics VRSK 103.69 Verizon VZ 47.73 VertxPharm VRTX 149.50 Viacom B VIAB 30.70 Viacom A VIA 35.25 Vipshop VIPS 15.86 VirtuFinancial VIRT 34.15 VistraEnergy VST 23.80 VMware VMW 135.82 Vodafone VOD 28.84 VornadoRealty VNO 70.42 VoyaFinancial VOYA 52.45 VulcanMatls VMC 123.43 1.33 -0.02 -1.12 -0.26 0.92 4.80 -0.01 1.12 -0.16 3.66 2.43 1.20 0.43 0.04 -0.86 0.26 -0.03 -0.66 -0.05 0.87 -0.85 -0.13 -0.58 -0.88 -0.78 -0.17 -0.03 2.69 -4.26 -0.04 2.02 -1.22 -0.23 0.75 -0.04 0.22 0.68 -0.52 -0.07 0.56 -0.05 0.04 0.22 0.60 0.09 1.28 0.22 1.19 T U V TAL Education TAL 38.65 TD Ameritrade AMTD 59.93 TE Connectivity TEL 92.94 Telus TU 35.71 Ternium TX 39.77 TIM Part TSU 21.81 TJX TJX 81.89 T-MobileUS TMUS 56.54 TRowePrice TROW 113.47 TableauSftwr DATA 90.99 TaiwanSemi TSM 38.45 TakeTwoSoftware TTWO 110.20 Tapestry TPR 45.41 TargaResources TRGP 46.55 Target TGT 69.33 TataMotors TTM 24.99 TechnipFMC FTI 32.80 TeckRscsB TECK 26.02 TelecomArgentina TEO 27.12 TelecomItalia A TI.A 8.90 TelecomItalia TI 10.18 TeledyneTech TDY 195.22 Teleflex TFX 272.39 Ericsson ERIC 7.83 TelefonicaBras VIV 13.42 Telefonica TEF 9.88 TelekmIndonesia TLK 26.45 s Tenaris TS 38.89 Teradyne TER 36.14 Tesla TSLA 302.77 TevaPharm TEVA 18.62 TexasInstruments TXN 104.51 Textron TXT 63.88 ThermoFisherSci TMO 208.98 ThomsonReuters TRI 38.97 3M MMM 200.26 Tiffany TIF 102.08 TimeWarner TWX 92.56 Toll Bros TOL 43.52 Torchmark TMK 85.44 Toro TTC 59.34 TorontoDomBk TD 56.91 Total TOT 62.00 TotalSystem TSS 86.39 ToyotaMotor TM 131.51 TractorSupply TSCO 66.81 TransCanada TRP 43.11 TransDigm TDG 329.11 TransUnion TRU 67.81 Travelers TRV 128.99 Trimble TRMB 35.65 t TurkcellIletism TKC 7.52 TurquoiseHill TRQ 2.94 21stCenturyFoxA FOXA 38.04 21stCenturyFoxB FOX 37.48 Twitter TWTR 31.33 TylerTech TYL 222.14 TysonFoods TSN 67.22 UBS Group UBS 15.98 Aspen Ins 5.625% Pfd. Aspen Ins Hldgs Pfd Aspen insurance AXIS Capital Holdings AXIS Capital Pfd. D BrightSphere Invt Group Brookfield Infrastructure China Eastern Air ADR Cosan Cl A Fresh Del Monte Produce Gpo Aeroportuario Pac ADR Grupo Fin Galicia ADR Pembina Pipeline Perrigo Tenaris ADR Validus Hldgs Pfd. A Validus Holdings Pfd. B Payable / Record Increased 0.10 0.07 0.19 0.38 -0.67 5.82 -0.20 0.51 0.52 -0.05 -0.04 0.77 -0.80 -0.05 0.81 6.26 0.02 -0.01 1.38 -2.12 -0.39 -0.25 0.05 0.20 0.14 1.10 0.48 -0.23 0.14 0.28 -0.07 0.13 0.12 0.84 0.20 0.11 1.33 -0.46 0.11 0.41 0.05 0.11 0.10 0.79 1.47 -0.01 0.79 0.49 0.73 W X Y Z 1.39 WBC 129.06 1.00 WABCO 0.51 WEC Energy WEC 64.03 WEX 171.45 -0.17 s WEX -0.03 W.P.Carey WPC 65.52 WPP 87.33 -0.19 WPP -0.94 s WPX Energy WPX 18.03 WAB 91.13 -0.72 Wabtec 1.50 WalgreensBoots WBA 62.30 WMT 85.47 -0.01 Walmart -0.14 s WasteConnections WCN 74.95 1.44 WasteMgt WM 83.22 WAT 192.61 -0.75 Waters WSO 174.05 0.52 Watsco W 82.16 -1.72 Wayfair WB 123.36 -0.07 Weibo -0.44 WellCareHealth WCG 214.95 0.17 WellsFargo WFC 52.66 -0.89 Welltower WELL 55.71 -0.10 WestPharmSvcs WST 87.61 -0.07 WestarEnergy WR 54.29 2.08 WestAllianceBcp WAL 59.97 1.30 WesternDigital WDC 78.52 0.10 WesternGasEquity WGP 34.77 -0.18 WesternGasPtrs WES 49.40 -0.05 WesternUnion WU 19.78 ... WestlakeChem WLK 106.85 0.24 WestpacBanking WBK 22.00 0.44 WestRock WRK 60.00 8.68 Weyerhaeuser WY 36.72 0.79 WheatonPrecMet WPM 21.31 WHR 153.40 -0.18 Whirlpool WMB 26.27 0.88 Williams -1.09 WilliamsPartners WPZ 36.38 -0.40 WillisTowers WLTW 151.32 WIT 4.74 0.90 Wipro -0.93 WooriBank WF 43.28 WDAY 133.13 -0.58 Workday WP 84.06 0.08 Worldpay -0.02 Wyndham WYN 106.92 0.55 WynnResorts WYNN 191.91 0.22 XPO Logistics XPO 104.30 -0.50 XcelEnergy XEL 46.13 XRX 28.46 1.18 Xerox XLNX 67.23 0.19 Xilinx XYL 70.02 -0.15 Xylem YPF 19.99 0.19 YPF YY 103.88 6.14 YY YNDX 34.08 0.71 Yandex -0.72 YumBrands YUM 83.11 0.76 YumChina YUMC 37.89 -0.28 ZTO Express ZTO 16.72 -0.01 ZayoGroup ZAYO 34.68 0.38 ZebraTech ZBRA 137.48 ZG 55.60 0.32 Zillow A 0.29 Zillow C Z 55.91 ... ZimmerBiomet ZBH 116.99 0.25 ZionsBancorp ZION 55.51 ZTS 82.15 0.03 Zoetis Amount Yld % New/Old Frq 5.8 5.8 2.2 2.7 5.6 2.6 4.8 0.9 1.2 2.7 0.8 5.2 1.0 1.3 5.8 5.8 Q .3516 Q .3719 Q .24 Q .39 .34375 Q Q .10 Q .47 .40109 .08224 A Q .15 1.24507 SA .38625 A .14795 M Q .19 .56 .36719 Q .3625 Q -0.58 -0.38 2.96 1.33 0.71 0.25 1.16 -1.51 -2.06 0.57 -0.83 1.03 1.18 2.03 8.08 -3.67 0.25 0.40 -0.39 -0.50 0.36 1.24 0.42 1.01 0.17 0.24 0.05 0.59 0.21 -0.01 0.10 0.08 -0.12 2.41 0.10 -0.16 3.08 1.06 0.62 -0.50 3.06 -0.26 0.08 0.28 -0.06 0.19 7.14 0.50 0.68 -0.30 0.02 1.71 2.81 2.60 3.06 0.77 0.05 0.59 Payable / Record Jul01 /Jun15 Jul01 /Jun15 Jun05 /May18 Jul16 /Jun29 Sep04 /Aug15 Jun29 /Jun15 Jun29 /May31 Aug03 /Jun25 May17 /May08 Jun01 /May09 May21 /May14 /May14 Jun15 /May25 Jun19 /Jun01 /May22 Jun15 /Jun01 Jun15 /Jun01 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO: spin-off. Exchange-Traded Portfolios | WSJ.com/ETFresearch Largest 100 exchange-traded funds, latest session ETF Monday, May 7, 2018 Closing Chg YTD Symbol Price (%) (%) AlerianMLPETF CnsmrDiscSelSector CnsStapleSelSector EnSelectSectorSPDR FinSelSectorSPDR FT DJ Internet HealthCareSelSect IndSelSectorSPDR iSh1-3YCreditBond iSh3-7YTreasuryBd iShCoreMSCIEAFE iShCoreMSCIEmgMk iShCoreMSCITotInt iShCoreS&P500 iShCoreS&P MC iShCoreS&P SC iShS&PTotlUSStkMkt iShCoreUSAggBd iShSelectDividend iShEdgeMSCIMinEAFE iShEdgeMSCIMinUSA iShEdgeMSCIUSAMom iShFloatingRateBd iShGoldTr iShiBoxx$InvGrCpBd iShiBoxx$HYCpBd iShJPMUSDEmgBd iShMBSETF iShMSCI ACWI iShMSCIBrazil iShMSCI EAFE AMLP XLY XLP XLE XLF FDN XLV XLI CSJ IEI IEFA IEMG IXUS IVV IJH IJR ITOT AGG DVY EFAV USMV MTUM FLOT IAU LQD HYG EMB MBB ACWI EWZ EFA 10.12 104.37 49.38 73.95 27.45 127.79 80.88 72.74 103.58 119.40 66.94 55.92 63.33 268.79 190.62 79.44 61.36 105.81 96.32 74.10 52.06 108.37 50.95 12.62 114.54 85.50 108.18 103.67 72.34 40.10 70.94 Net YTD NAV Chg %Ret Fund 0.70 –6.2 5.8 0.34 –0.62 –13.2 2.3 0.14 0.66 –1.6 1.31 16.3 –0.15 –2.2 0.66 –3.9 –0.01 –0.9 –0.03 –2.3 1.3 0.07 –0.57 –1.7 0.4 –0.03 0.36 –0.0 0.4 0.55 3.4 0.77 0.4 0.44 –0.05 –3.2 –0.18 –2.3 1.5 0.12 0.08 –1.4 5.1 0.80 0.3 –0.02 0.9 ... –0.11 –5.8 0.09 –2.0 –0.41 –6.8 0.02 –2.7 0.3 0.17 –1.60 –0.9 0.9 0.01 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 iShShortTreaBd iShTIPSBondETF iSh1-3YTreasuryBd iSh7-10YTreasuryBd iSh20+YTreasuryBd iShRussellMCGrowth PIMCOEnhShMaturity PwrShQQQ 1 PwrShS&P500EW PwrShSrLoanPtf SPDR BlmBarcHYBd SPDR Gold SchwabIntEquity SchwabUS BrdMkt Net YTD NAV Chg %Ret Fund ... NA IntlEqIdxInst PIMCO Fds Instl Principal Investors NA AllAsset NA ... NA DivIntlInst NA ... NA ShortT 9.87 ... 0.7 Prudential Cl Z & I TotRt 9.96 -0.01 -2.2 TRBdZ 14.07 ... -0.7 PIMCO Funds A Schwab Funds NA ... NA S&P Sel IncomeFd 41.42 +0.14 NA PIMCO Funds I2 TIAA/CREF Funds NA ... NA BdIdxInst Income NA ... NA PIMCO Funds Instl EqIdxInst NA ... NA NA 0.5 NA 2.4 9.2 NA -0.3 1.4 NA NA 8.4 1.4 NA NA NA NA NA -2.3 8.4 6.7 -0.3 NA -2.5 0.6 NA NA SCZ EEM EZU EWJ IBB MUB IWF IWB IWD IWO IWM IWN IWV IWR IWS IJK IVW IVE PFF SHV TIP SHY IEF TLT IWP MINT QQQ RSP BKLN JNK GLD SCHF SCHB Closing Chg YTD Symbol Price (%) (%) ETF Closing Chg YTD Symbol Price (%) (%) ETF IncomeFd NA EmgMktEq 19.24 -0.09 -3.9 Price Funds Lord Abbett A NA ... BlChip ... -0.1 EqInc ShtDurIncmA p 4.19 NA ... Lord Abbett F 71.79 +0.24 EqIndex ShtDurIncm 4.19 ... -0.1 Growth NA ... Metropolitan West HelSci 72.05 +0.36 TotRetBd 10.36 ... -2.1 InstlCapG 40.29 +0.29 TotRetBdI 10.35 -0.01 -2.1 IntlStk NA ... 9.75 ... -1.9 IntlValEq TRBdPlan 15.08 ... MFS Funds Class I 30.82 +0.16 MCapVal 39.09 +0.13 -3.8 MidCap ValueI NA ... MFS Funds Instl N Inc NA ... IntlEq 25.69 +0.06 0.9 NHoriz 56.97 +0.58 Oakmark Funds Invest OverS SF r 11.47 +0.01 31.46 +0.06 -2.3 R2020 EqtyInc r NA ... 84.54 +0.34 0.2 R2025 Oakmark NA ... OakmrkInt 28.54 +0.12 -0.1 R2030 NA ... Old Westbury Fds R2035 NA ... NA ... NA R2040 LrgCpStr NA ... Oppenheimer Y 36.46 +0.07 Value DevMktY 43.18 -0.07 0.6 PRIMECAP Odyssey Fds 44.25 +0.24 1.4 AggGrowth r 48.06 +0.37 IntGrowY Parnassus Fds 39.76 +0.28 Growth r 42.70 +0.06 0.4 Stock r ParnEqFd 31.83 +0.15 ... -1.8 Lazard Instl -0.4 Net Sym Close Chg Stock MAC 58.64 0.37 POSCO PKX 85.43 -0.74 Icon ICLR 121.22 -0.71 Macerich PPG 106.21 -0.19 IDEX IEX 136.27 -0.23 Mack-Cali CLI 18.40 0.17 PPG Ind M PPL 28.58 -0.37 30.05 -1.19 PPL IllinoisToolWks ITW 144.79 -0.68 Macy's s Illumina PTC 86.51 1.43 ILMN 256.89 12.07 MadisonSquGarden MSG 250.57 -0.49 s PTC PVH 151.52 -0.75 ImperialOil IMO 31.31 0.28 MagellanMid MMP 68.09 1.23 PVH PCAR 64.50 0.70 Incyte INCY 62.87 0.74 MagnaIntl MGA 60.81 0.44 Paccar Infosys INFY 17.44 -0.22 Manpower MAN 96.13 -0.50 PackagingCpAm PKG 114.10 -0.05 Ingersoll-Rand IR 87.39 0.72 ManulifeFin MFC 19.00 0.27 PacWestBancorp PACW 52.32 0.30 Ingredion INGR 111.51 -1.77 s MarathonOil MRO 19.77 0.05 PagSeguroDig PAGS 32.10 0.86 Intel INTC 53.33 0.55 MarathonPetrol MPC 76.50 -0.44 s PaloAltoNtwks PANW 198.54 3.18 s InteractiveBrkrs IBKR 76.78 1.83 Markel MKL 1134.63 10.38 ParkHotels PK 29.87 0.56 ICE ICE 70.57 0.32 MarketAxess MKTX 204.02 2.28 ParkerHannifin PH 170.51 -0.44 MAR 136.64 0.79 s ParsleyEnergy PE 32.15 0.23 InterContinentl IHG 64.52 0.42 Marriott PAYX 62.56 0.15 IBM IBM 143.22 -0.69 Marsh&McLen MMC 81.26 0.11 Paychex t IntlFlavors IFF 126.89-15.26 MartinMarietta MLM 204.61 0.61 PaycomSoftware PAYC 108.32 1.03 PYPL 74.67 0.68 IntlPaper IP 51.89 -0.30 MarvellTech MRVL 20.80 -0.45 PayPal MAS 38.30 -0.02 s Pearson PSO 12.13 0.05 Interpublic IPG 23.55 -0.11 Masco s Intuit INTU 189.56 0.11 s Mastercard MA 189.10 0.93 PembinaPipeline PBA 34.19 0.25 PNR 44.43 0.13 IntuitiveSurgical ISRG 465.40 4.98 MatchGroup MTCH 35.40 0.58 Pentair InvitatHomes INVH 23.53 ... 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NICE NICE 95.75 -1.31 QurateQVC B QRTEB 23.83 -0.30 Kohl's KSS 60.38 -2.72 s NRG Energy NRG 34.16 0.86 KoninklijkePhil PHG 41.86 -0.13 NVR NVR 3108.62-49.97 KoreaElcPwr KEP 17.07 -0.19 NXP Semi NXPI 98.46 -1.82 RENX 21.20 0.04 KraftHeinz KHC 58.83 0.82 Nasdaq NDAQ 88.66 0.96 RELX RELX 21.60 0.02 Kroger KR 23.98 -0.16 NationalGrid NGG 57.78 -0.09 RELX RPM RPM 49.03 0.26 Kyocera KYO 61.20 -0.44 NatlOilwell NOV 38.60 0.10 LATAMAirlines LTM 14.23 -0.07 NatlRetailProp NNN 40.11 0.26 RSP Permian RSPP 49.02 0.94 RalphLauren RL 106.19 -0.61 t L Brands LB 34.03 -0.32 NektarTherap NKTR 78.76 1.56 LG Display LPL 10.62 -0.07 NetApp NTAP 68.84 0.83 RandgoldRscs GOLD 81.32 -0.29 RaymondJames RJF 91.20 1.65 LINE LN 36.60 0.23 Netease NTES 255.56 3.99 LKQ LKQ 30.64 0.51 Netflix NFLX 326.26 6.17 Raytheon RTN 205.17 2.63 RealtyIncome O 52.67 0.40 LPL Financial LPLA 65.29 0.95 Neurocrine NBIX 83.59 0.66 RHT 168.76 2.66 L3 Tech LLL 188.40 4.40 NewOrientalEduc EDU 91.67 0.89 s RedHat RegencyCtrs REG 58.90 0.14 LabCpAm LH 171.11 -0.19 NewResidInvt NRZ 17.97 0.03 LamResearch LRCX 193.48 -1.99 t NY CmntyBcp NYCB 11.71 -0.14 t RegenPharm REGN 288.54 -2.71 RegionsFin RF 18.75 0.03 LamarAdv LAMR 66.52 0.59 NewellBrands NWL 27.58 -0.07 RGA 153.28 1.24 LambWeston LW 66.21 1.12 NewmontMin NEM 39.87 0.22 ReinsGrp RelianceSteel RS 91.47 1.60 LasVegasSands LVS 76.88 0.50 NewsCorp A NWSA 16.39 0.25 Lazard LAZ 53.99 1.13 NewsCorp B NWS 16.60 0.25 RepublicSvcs RSG 68.04 -0.52 ResMed RMD 97.85 0.13 Lear LEA 191.33 0.65 NextEraEnergy NEE 163.35 -0.74 Leidos LDOS 60.83 0.70 Nike NKE 69.34 1.24 RestaurantBrands QSR 54.52 0.03 RioTinto RIO 55.48 -0.14 Lennar B LEN.B 42.85 -0.18 NiSource NI 25.48 0.07 Lennar A LEN 54.33 -0.11 NobleEnergy NBL 32.87 0.14 RobertHalf RHI 61.91 -0.14 Rockwell ROK 174.05 0.56 LennoxIntl LII 201.92 2.37 Nokia NOK 6.19 0.09 LeucadiaNatl LUK 24.64 0.19 NomuraHoldings NMR 5.47 -0.13 RockwellCollins COL 133.44 0.90 RogersComm B RCI 46.90 -0.30 LibertyBroadbandA LBRDA 72.80 0.70 Nordson NDSN 131.06 1.29 ROL 50.07 0.53 LibertyBroadbandC LBRDK 73.44 0.30 Nordstrom JWN 48.52 -0.97 Rollins LibertyGlobal C LBTYK 31.62 1.11 NorfolkSouthern NSC 145.47 1.55 RoperTech ROP 270.62 1.42 LibertyGlobal B LBTYB 31.97 2.67 NorthernTrust NTRS 105.36 0.52 RossStores ROST 79.44 -1.27 LibertyGlobal A LBTYA 32.91 1.16 NorthropGrum NOC 317.13 3.28 RoyalBkCanada RY 76.62 0.49 LibertyFormOne C FWONK 31.90 -0.93 t NorwegCruise NCLH 50.31 -1.20 RoyalBkScotland RBS 7.50 0.03 LibertyFormOne A FWONA 30.32 -0.65 Novartis NVS 77.09 0.40 RoyalCaribbean RCL 105.06 -2.30 LibertyBraves A BATRA 22.96 0.64 NovoNordisk NVO 47.83 0.04 RoyalDutchA RDS.A 69.73 -0.11 ... LibertyBraves C BATRK 23.47 0.68 Nucor NUE 62.84 -0.10 RoyalDutchB RDS.B 72.57 LibertySirius B LSXMB 43.25 2.47 s Nutanix NTNX 55.72 1.33 RoyalGold RGLD 89.02 0.39 Ryanair RYAAY 112.34 -0.86 LibertySirius C LSXMK 42.55 0.38 Nutrien NTR 46.24 -0.29 SAP 113.99 -0.03 LibertySirius A LSXMA 42.56 0.31 NVIDIA NVDA 248.68 9.62 SAP S&P Global SPGI 193.38 1.21 LibertyProperty LPT 43.26 0.98 SBA Comm SBAC 157.60 -1.54 EliLilly LLY 78.63 0.23 SEI Investments SEIC 62.43 0.02 LincolnNational LNC 68.62 -0.33 SINA 98.61 4.48 LiveNationEnt LYV 45.07 -0.43 OGE Energy OGE 34.33 0.16 Sina s SINOPEC SHI 64.51 -1.24 ONEOK OKE 64.07 0.62 LloydsBanking LYG 3.58 0.03 LockheedMartin LMT 317.71 6.27 OReillyAuto ORLY 263.17 3.66 SK Telecom SKM 23.56 0.01 Loews L 51.20 0.23 s OccidentalPetrol OXY 77.28 -0.43 SLGreenRealty SLG 100.36 0.44 LogitechIntl LOGI 39.97 0.45 OldDomFreight ODFL 137.93 3.62 SS&C Tech SSNC 48.75 0.49 SIVB 307.32 1.50 LogMeIn LOGM 116.40 2.35 OldRepublic ORI 20.25 0.13 s SVB Fin SABR 23.14 -0.13 Lowe's LOW 83.85 -0.38 Omnicom OMC 74.05 -0.53 s Sabre SageTherap SAGE 154.76 6.38 ON Semi ON 22.86 0.22 lululemon LULU 97.17 1.68 LyondellBasell LYB 104.60 -0.19 OpenText OTEX 36.57 0.39 Salesforce.com CRM 126.97 1.85 SNY 39.38 0.16 Oracle ORCL 46.07 0.36 Sanofi Orange ORAN 17.96 -0.16 s SantanderCons SC 18.78 0.17 OrbitalATK OA 133.37 -0.17 s SareptaTherap SRPT 90.20 0.45 M&T Bank MTB 180.92 0.47 Orix SSL 35.81 0.20 IX 91.51 0.50 Sasol MGM Resorts MGM 31.61 -0.25 OwensCorning OC 65.39 0.43 Schlumberger SLB 69.21 0.42 SCHW 56.97 0.88 MKS Instrum MKSI 109.20 0.15 PG&E PCG 44.62 -0.26 SchwabC STX 55.95 0.27 MPLX MPLX 34.73 -0.26 t PLDT PHI 26.11 -0.21 Seagate MSCI MSCI 154.92 2.79 PNC Fin PNC 145.90 0.30 SealedAir SEE 44.12 -0.33 Net YTD NAV Chg %Ret Fund 10.35 First Eagle Funds GlbA 58.83 +0.11 FPA Funds 34.52 +0.16 FPACres FrankTemp/Frank Adv ... IncomeAdv 2.27 FrankTemp/Franklin A CA TF A p 7.28 ... 2.29 ... IncomeA p RisDv A p 59.95 +0.13 FrankTemp/Franklin C ... Income C t 2.32 FrankTemp/Temp A GlBond A p 11.89 -0.04 Growth A p 26.93 +0.09 FrankTemp/Temp Adv GlBondAdv p 11.84 -0.04 Harbor Funds CapApInst 75.28 +0.74 68.34 +0.25 IntlInst r Harding Loevner NA ... IntlEq Invesco Funds A EqIncA 10.79 +0.02 John Hancock Class 1 NA ... LSBalncd LSGwth NA ... John Hancock Instl DispValMCI 23.14 +0.06 JPMorgan Funds NA ... MdCpVal L JPMorgan R Class NA ... CoreBond Net Sym Close Chg Stock 66.02 46.16 44.52 60.80 103.00 108.27 139.41 148.81 120.14 196.05 157.05 126.78 158.66 208.08 87.11 220.64 158.84 109.38 37.05 110.28 112.12 83.19 101.59 118.80 123.97 101.46 166.24 100.00 23.08 35.74 124.57 34.26 64.76 0.08 –0.58 –0.04 0.12 0.64 0.02 0.57 0.40 0.22 1.00 0.85 0.73 0.42 0.43 0.25 0.62 0.52 0.13 0.16 0.00 0.02 ... –0.05 –0.16 0.63 0.02 0.83 0.17 –0.04 0.08 0.02 0.06 0.43 2.4 –2.0 2.6 1.5 –3.5 –2.2 3.5 0.1 –3.4 5.0 3.0 0.8 0.3 –0.0 –2.3 2.2 4.0 –4.3 –2.7 0.0 –1.7 –0.8 –3.8 –6.4 2.8 –0.1 6.7 –1.0 0.2 –2.7 0.7 0.6 0.4 Net YTD NAV Chg %Ret Fund NA ... Tweedy Browne Fds 29.21 +0.12 GblValue VANGUARD ADMIRAL 500Adml 247.08 +0.85 BalAdml 34.44 +0.09 CAITAdml 11.58 +0.01 CapOpAdml r156.71 +0.98 37.62 -0.08 EMAdmr EqIncAdml 75.74 +0.19 ExplrAdml 94.66 +0.92 ExtndAdml 86.65 +0.72 GNMAAdml 10.21 ... GrwthAdml 74.95 +0.43 HlthCareAdml r 82.09 +0.20 HYCorAdml r 5.75 +0.01 InfProAd 25.25 +0.01 IntlGrAdml 99.77 +0.49 ... ITBondAdml 10.92 ... ITIGradeAdml 9.39 LTGradeAdml 9.74 -0.02 MidCpAdml 192.13 +0.67 MorgAdml 96.10 +0.63 MuHYAdml 11.21 ... MuIntAdml 13.86 +0.01 ... MuLTAdml 11.39 ... MuLtdAdml 10.80 ... MuShtAdml 15.68 PrmcpAdml r137.28 +0.76 RealEstatAdml110.27 +0.71 SmCapAdml 72.13 +0.56 ... STBondAdml 10.23 ... STIGradeAdml 10.46 TotBdAdml 10.40 -0.01 TotIntBdIdxAdm 21.82 +0.01 SchwabUS Div SchwabUS LC SchwabUS SC SPDR DJIA Tr SPDR S&PMdCpTr SPDR S&P 500 SPDR S&P Div TechSelectSector VanEckGoldMiner VangdInfoTech VangdSC Val VangdSC Grwth VangdDivApp VangdFTSEDevMk VangdFTSE EM VangdFTSE Europe VangdFinls VangdFTSEAWxUS VangdGrowth VangdHiDiv VangdIntermBd VangdIntrCorpBd VangdLC VangdMC VangdMC Val VangdRealEst VangdS&P500 VangdST Bond VangdSTCpBd VangdSC VangdTotalBd VangdTotIntlBd VangdTotIntlStk VangdTotalStk VangdTotlWrld VangdValue SCHD SCHX SCHA DIA MDY SPY SDY XLK GDX VGT VBR VBK VIG VEA VWO VGK VFH VEU VUG VYM BIV VCIT VV VO VOE VNQ VOO BSV VCSH VB BND BNDX VXUS VTI VT VTV Net YTD NAV Chg %Ret Fund NA TotIntlAdmIdx r 30.49 ... TotStAdml 67.05 +0.29 2.5 TxMIn r 14.45 +0.01 40.29 +0.08 ValAdml 0.6 WdsrllAdml 65.89 +0.24 -0.3 WellsIAdml 62.96 +0.04 -0.8 WelltnAdml 71.03 +0.14 2.0 WndsrAdml 78.49 +0.19 -1.3 VANGUARD FDS -2.3 DivdGro 26.13 +0.06 7.1 INSTTRF2020 22.49 +0.03 2.5 INSTTRF2025 22.85 +0.04 -1.4 INSTTRF2030 23.14 +0.04 3.8 INSTTRF2035 23.43 +0.05 -2.9 INSTTRF2040 23.71 +0.05 -1.1 INSTTRF2045 23.90 +0.05 -1.1 INSTTRF2050 23.93 +0.06 4.4 39.81 +0.04 IntlVal -2.9 19.79 +0.02 LifeCon -2.6 33.76 +0.08 LifeGro -6.9 27.11 +0.04 LifeMod 0.6 26.89 +0.11 5.9 PrmcpCor 29.60 +0.04 SelValu r -0.7 26.86 +0.07 STAR -0.9 -1.2 TgtRe2015 15.28 +0.02 -0.2 TgtRe2020 31.33 +0.05 0.3 TgtRe2025 18.48 +0.03 2.7 TgtRe2030 33.66 +0.07 -5.3 TgtRe2035 20.73 +0.04 2.2 TgtRe2040 35.90 +0.08 -0.8 TgtRe2045 22.59 +0.05 -0.7 TgtRe2050 36.36 +0.09 -2.3 TgtRetInc 13.45 +0.02 0.9 TotIntBdIxInv 10.91 ... 0.2 WellsI 0.9 Welltn 0.7 WndsrII -2.1 -1.8 -2.9 -1.6 -0.6 -0.4 -0.2 ... 0.1 0.3 0.4 0.4 0.5 -0.2 -0.5 0.3 -0.1 ... -5.3 0.2 -0.3 -0.2 -0.1 0.1 0.2 0.4 0.4 0.4 -0.4 0.9 48.18 63.92 71.11 243.42 347.07 266.92 91.05 68.09 22.65 178.41 132.04 168.93 99.92 44.96 45.08 59.50 69.34 54.58 145.61 82.67 80.55 83.38 122.75 155.12 109.63 77.81 245.17 78.04 78.06 150.59 78.84 54.65 56.73 137.73 74.33 103.29 –0.12 0.36 0.85 0.37 0.54 0.34 0.15 0.70 ... 0.86 0.66 1.02 0.14 –0.02 –0.27 –0.83 0.59 –0.13 0.57 0.19 –0.02 –0.01 0.38 0.34 ... 0.67 0.31 0.01 0.03 0.78 –0.05 0.07 –0.16 0.44 0.15 0.19 –5.8 0.2 2.0 –1.6 0.5 0.0 –3.6 6.5 –2.5 8.3 –0.6 5.0 –2.1 0.2 –1.8 0.6 –1.0 –0.3 3.5 –3.5 –3.9 –4.6 0.1 0.2 –1.7 –6.2 –0.0 –1.3 –1.6 1.9 –3.3 0.5 –0.1 0.3 0.1 –2.8 Net YTD NAV Chg %Ret 25.99 +0.02 41.13 +0.08 37.13 +0.14 VANGUARD INDEX FDS 247.06 +0.85 500 ExtndIstPl 213.84 +1.78 SmValAdml 56.69 +0.34 10.37 ... TotBd2 18.23 ... TotIntl 67.02 +0.29 TotSt VANGUARD INSTL FDS BalInst 34.44 +0.09 DevMktsIndInst 14.47 +0.01 DevMktsInxInst 22.61 +0.01 86.65 +0.72 ExtndInst GrwthInst 74.95 +0.42 InPrSeIn 10.29 +0.01 InstIdx 243.86 +0.84 243.88 +0.84 InstPlus InstTStPlus 59.60 +0.25 MidCpInst 42.44 +0.15 MidCpIstPl 209.32 +0.73 SmCapInst 72.13 +0.56 SmCapIstPl 208.20 +1.62 ... STIGradeInst 10.46 10.40 -0.01 TotBdInst ... TotBdInst2 10.37 TotBdInstPl 10.40 -0.01 TotIntBdIdxInst 32.74 +0.01 TotIntlInstIdx r121.95 ... TotItlInstPlId r121.97 ... 67.06 +0.29 TotStInst 40.29 +0.08 ValueInst Western Asset CorePlusBdI 11.39 -0.02 -2.9 -1.6 -1.9 0.5 2.5 -0.2 -2.4 0.2 0.9 -0.3 0.7 0.6 2.5 3.8 -1.0 0.6 0.6 0.9 0.6 0.6 2.2 2.2 -0.7 -2.3 -2.4 -2.3 0.9 0.2 0.2 0.9 -2.1 -2.7 . B10 | Tuesday, May 8, 2018 * *** THE WALL STREET JOURNAL. BANKING & FINANCE Global institutions are Small Get Smaller gaining in size while The equity-trading revenue share more modest firms for smaller ﬁrms among U.S. banks dropped are running to keep up investment sharply in the ﬁrst quarter. BY TELIS DEMOS 8% It’s a good time to be a megabank. In many businesses, the largest global banks such as JPMorgan Chase & Co. and Bank of America Corp. are getting bigger, while others are struggling to keep pace. The latest example: the volatility-induced surge in firstquarter stock-trading revenue that smaller U.S. investment banks almost universally missed out on. Stifel Financial Corp., Raymond James Financial Inc., Evercore Inc., and Piper Jaffray Cos. all reported drops of 10% or more in stock-trading revenue for the first three months of 2018 compared with a year ago, according to company filings, resulting in the lowest market share in years for midtier trading firms. By contrast, trading arms of the biggest U.S. banks—at JPMorgan and Bank of America, as well as at Citigroup Inc., Goldman Sachs Group Inc. and Morgan Stanley— 6 4 2 0 2016 ’17 ’18 Note: Smaller ﬁrms include Cowen, Evercore, Jefferies, Piper Jaffray, Raymond James, Stifel. Source: Nomura Instinet analysts THE WALL STREET JOURNAL. posted gains in equities sales and trading revenue ranging from 26% to 38% for the quarter versus a year ago. That suggests one widely held prediction coming out of the financial crisis—that regulation would crimp giant Wall Street trading desks and open opportunities for nimbler, less-regulated trading shops—isn’t holding up. Instead, the broad shift toward complex electronic trading and a decline in the number of hedge funds and active asset managers, especially smaller ones, have put pressure on the trading desks of small and midtier firms. Of course, smaller firms have notched some wins, and some are reporting record revenue, due in part to strong showings in businesses like wealth management and merger advice. In equities trading, the overall revenue pie has shrunk from about $90 billion in 2007 to about $40 billion last year, according to research provider Coalition. Pricing pressure has been relentless due to factors including lightning-fast algorithmic traders. The rise of passive index funds and exchange-traded portfolios, plus a new trend of investing directly in volatility, has put money managers who actively manage funds—the core clients of smaller securities firms—on the defensive. The first-quarter equity revenue surge at big banks was driven primarily by derivatives activity around volatility, not traditional stock trading. “We would have expected to attract more activity given the bouts of volatility we experienced in the quarter,” Deb Schoneman, Piper Jaffray’s president, told analysts in April. “However, active asset managers—our client base— did not participate as much.” In an actively managed fund, portfolio managers buy and sell securities in an attempt to outperform a specific index. Passively managed funds aim to match the returns from an index. At the end of 2013, six publicly reporting midtier investment banks, including Jefferies Group and Cowen Inc., generated about 8% of U.S. banks’ reported equitiestrading revenue, according to company reports compiled by analysts at Nomura Instinet. At the beginning of this year, that share dropped to about 4%. “In the first quarter, the volume that was occurring was from passive strategies, and those…tend to be more low-touch trading that the big banks have always dominated,” said Ronald Kruszewski, Stifel’s chief executive, in an interview. New regulations are playing a role. European authorities this year began a ban on the practice of using trading commissions to pay for stock research, part of a set of rules known as Mifid II. Now, funds investing money for European clients, even if they are trading in the U.S., may need to pay for re- search directly. The upshot is that some fund managers are now more attuned to the cost and value of research and are paring back relationships. Greenwich Associates, an industry research firm, estimated that budgets for research have dropped by $300 million. “The model for research is challenged across the industry right now, and has been for about a decade,” said Paul Reilly, chief executive of Raymond James, on a call with analysts in April. He estimated that the new rules have reduced some of his firm’s commission revenue. While Raymond James had no plans to exit trading, Mr. Reilly said, the firm’s focus has been to expand its M&A and private-markets businesses. Raymond James’s net revenue reached a record level, $1.8 billion, for the first three months of the year. Meanwhile, JPMorgan’s chief financial officer, Marianne Lake, told analysts in April that the new European rules and other changes in the markets may be helping the country’s largest bank by assets. “We’re gaining some share and we’re benefiting from some of that concentration,” she said. BY DAVE MICHAELS WASHINGTON—The Securities and Exchange Commission is losing a Republican member who was a frequent critic of postcrisis regulations and helped quash some rules embraced by Democrats. Michael Piwowar said he intends to step down from the SEC on July 7 after serving nearly five years on the fiveperson commission. Mr. Piwowar’s departure would leave the agency with four commissioners, meaning some votes could be deadlocked if the SEC’s two Democrats oppose measures favored by Chairman Jay Clayton, a Trump administration appointee. That could slow Mr. Clayton’s progress on his priorities, which include stricter rules for brokers advising retail investors and lightening regulatory burdens on public companies. Mr. Piwowar jump-started the SEC’s deregulatory efforts when he served as its acting chairman for five months after President Donald Trump’s election. He ordered a halt to work on regulatory plans required by the 2010 Dodd-Frank Act, including several executive-compensation restrictions that the SEC hadn’t finished. As acting chairman, Mr. Piwowar made waves with a speech in February 2017, when he called for abolishing rules that prevent most households and individuals from investing in startups and other private companies. The rules essentially deem these investments too risky for amateurs, but Mr. Piwowar said they reserve the best opportunities for venture capitalists and millionaires. “It has been an honor to serve the American people at such a respected agency and work with such dedicated and talented staff,” Mr. Piwowar wrote in a letter dated Monday informing Mr. Trump of his plans to leave. “We accomplished a great deal for the ‘forgotten investor’ in a short period of time.” Mr. Piwowar didn’t disclose what he plans to do after leaving the SEC. In recent years, many former commissioners have taken regulatory-consulting roles and served on the boards of public companies. His term ends in June, although laws give commissioners flexibility to continue working for several months beyond their fixed tenure. Democratic SEC commis- WALDO SWIEGERS/BLOOMBERG NEWS Republican Piwowar Is Set to Leave SEC ‘We accomplished a great deal for the “forgotten investor” in a short period...’ Michael Piwowar sioner Kara Stein remains in office, even though her term ended last year. In theory, the White House and Senate could move quickly and nominate replacements for both Mr. Piwowar and Ms. Stein. The Senate usually considers candidates for commissioners in pairs—one Republican and one Democrat. As a commissioner, Mr. Piwowar used procedural tactics to block some votes on DoddFrank rules toward the end of the Obama administration, when due to other resignations, the agency had only three members. The SEC didn’t finish derivatives-trading rules and curbs on incentive compensation because Mr. Piwowar indicated he would withhold his vote. The SEC’s governance rules require all three members to vote when the agency is down to three commissioners. Mr. Piwowar also said he worked to delay final action on a rule that required companies to disclose payments to overseas governments for the right to develop oil, natural gas and mineral assets. The stall tactic resulted in the SEC voting on the rule in June 2016, which extended a deadline for congressional Republicans to repeal it after Mr. Trump became president. “When I told people that was my strategy, they said everything has to go right—Republicans have to win the White House, keep the House and the Senate,” he said. “It was a Hail Mary pass, but it worked.” The rule’s supporters said it would have helped to reduce corruption, but Republicans said it was unfair because it only applied to firms listed on U.S. stock exchanges and not to many foreign energy companies. Australian Bank Ends Sales-Tied Bonuses MELBOURNE, Australia— One of Australia’s biggest banks has scrapped salesbased bonuses for its financial planners and vowed to drop those who provide inappropriate advice. In a first among the country’s largest lenders, Australia & New Zealand Banking Group Ltd. said Monday that it is implementing initiatives to improve the quality of financial planning and of remediation for customers when things go wrong. The country’s financial industry is under investigation by a royal commission, following a series of scandals. “Financial advice is an important part of the services we offer, but it’s also an area where we’ve failed some of our customers,” ANZ Chief Executive Shayne Elliott said. ANZ said it would end sales incentives for bonuses and assess planners solely on customer satisfaction, the bank’s values and risk and compliance standards. Planners who fail two audits will be terminated, it said, and future hires will have to have a relevant undergraduate degree and industry certification. Current planners must be enrolled in additional training by January. ANZ also committed to completing compensation this year for about 9,000 inappropriate-advice cases that have DANIEL MUNOZ/REUTERS BY ROBB M. STEWART The move by Australia & New Zealand Banking Group comes as the industry is under investigation after a series of scandals. been identified. Australia’s major banks emerged from the global financial crisis relatively unscathed and in no need of government bailouts, thanks in part to their focus on the domestic economy, then two decades into its long stretch of unbroken growth. Still, in recent years the broader industry has been buffeted by allegations of offering misleading advice, not honoring insurance claims, rigging rates and failing to prevent money laundering. Under pressure, the govern- ment late last year launched an inquiry into industry misconduct and whether regulators are equipped to identify and address it. The latest round of public hearings last month examined the wealthmanagement industry, investigators having received com- ments from the public alleging adviser conflicts of interest and cases of being billed for advice not received and pushed to overextend or invest in high-risk investments. Kylie Rixon, chief risk officer of ANZ’s wealth arm, confirmed to the inquiry that an audit of three main financialadvice units found 5% of advice given between mid-2013 and mid-2015 failed to meet the requirement that it be in the best interest of the client. The big banks have been tightening their focus on their core lending and deposit businesses, scaling back on lowergrowth areas and those with large capital demands. Last week, National Australia Bank Ltd. said it would spin off or sell its advice, pension and asset-management businesses by the end of 2019. ANZ earlier sold a large chunk of its Australian wealth and insurance businesses, and Commonwealth Bank of Australia moved to list its global Colonial First State Asset Management arm. “We have seen there are challenges in financial planning generally,” Brian Hartzer, CEO of Westpac Banking Corp., said Monday, adding that the bank in recent years had put a greater emphasis on customer results in determining pay levels. National Australia Bank and Commonwealth Bank didn’t immediately reply to questions about financial-planner pay. BY RYAN TRACY WASHINGTON—The largest big-bank rule changes proposed since President Donald Trump took office would refashion one of the core responses to the 2008 financial crisis, generating an unusual level of opposition for the consensus-driven world of bank regulation. Trump-appointed officials are retooling the leverage ratio, a capital rule adopted to curb excessive borrowing. The changes portend more freedom for gigantic lenders such as Bank of America Corp. and Goldman Sachs Group Inc. to expand activities they have cut back in recent years. Officials say other restrictions will still prevent the banks from taking outsize risk. Capital rules seek to prevent too much risk-taking by forcing bankers to fund loans and investments with a minimum amount of investors’ equity, as opposed to less-secure borrowed money. Big-bank critics across the political spectrum support the leverage ratio as a relatively simple curb. Bankers say the current version is so strict and simplistic that it discourages them from low-risk activities. Regulators are siding with the industry and recently proposed two major changes that would diminish its significance. “That’s going to allow us to have more flexibility,” Bank of America Chief Financial Officer Paul Donofrio said on an April 16 call with Wall Street analysts. He was referring to a joint proposal by the Federal Reserve and the Office of the Comptroller of the Currency to lower the leverage ratio for the largest U.S. banks. With the changes, the bank could expand some business lines or potentially return more profits to shareholders, he said. The Fed has separately proposed cutting back the leverage ratio’s role in its annual “stress tests” of big banks. The proposals are among the first in a series of expected changes to postcrisis regulatory policies erected by the Obama administration. Trump-appointed regulators also are rewriting the Volcker rule trading ban and revisiting bank liquidity rules. Opposition, particularly to the joint Fed-OCC proposal, is coming from both conservatives and liberals. “We haven’t had a recession since 2008, so from one point of view, our ‘too-big-to-fail’ banks have never really been tested,” Sen. John Kennedy (R., La.) told Fed Vice Chairman for Supervision Randal Quarles at an April 19 Senate Banking Committee hearing. Echoing Democrats on the panel, Mr. Kennedy cautioned against “fooling with the leverage ratio until we see how our banks do in a real, fullblown recession.” Fed governor Lael Brainard’s April vote against the Fed-OCC leverage-ratio proposal is the only dissent among 315 Fed board votes on record since 2012. The Obama appointee said in a recent speech that banks are profitable and her colleagues should be worried about loosening capital rules. Mr. Quarles, a Trump appointee who backed the proposals, on Friday said “these new rules will maintain the resiliency of the financial system and make our regulation simpler and more risk sensitive.” KHOLOOD EID/BLOOMBERG NEWS Big Banks Thump Small Rivals Regulators Refashion Bank Rule On Capital Fed governor Lael Brainard voted against easing the rule. . THE WALL STREET JOURNAL. Tuesday, May 8, 2018 | B11 * * * * MARKETS BY SAM GOLDFARB U.S. government bond prices edged lower Monday as investors looked ahead to a series of debt auctions and releases of inflation data. The yield on the benchmark 10-year U.S. Treasury note settled at 2.950%, CREDIT compared with MARKETS 2.946% Friday. Yields, which rise when bond prices fall, have barely moved in recent sessions as investors wait for more data to support the widely held view that declining unemployment should lead to higher inflation and potentially a faster pace of interest-rate increases from the Federal Reserve. The yield on the 10-year note has climbed from 2.409% at the end of 2017 but has eased after briefly topping 3% two weeks ago. This week, bond supply will be a major focus for investors. A $31 billion sale of three-year notes is set for Tuesday, followed by a $25 billion auction of 10-year notes Wednesday and a $17 billion sale of 30year bonds on Thursday. To fund a growing federal budget deficit, the Treasury Department has been increasing the size of its debt auctions, putting some upward pressure on yields, though some investors think it could still yet have a larger impact. Investors also will be paying close attention to a report on producer prices set for release Wednesday, followed by the more heavily scrutinized consumer-price index on Thursday. On average, economists surveyed by The Wall Street Journal expect that CPI rose 0.3% in April from the previous month, or 0.2% excluding food and energy costs. 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 $141,785,698,800 $131,205,091,800 $48,000,011,300 $42,000,511,800 $732,708,800 $748,457,800 $279,000,000 $200,000,000 99.534889 98.988889 (1.840%) (2.000%) 1.874% 2.048% Coupon equivalent 65.59% 60.56% Bids at clearing yield accepted 912796PU7 912796PD5 Cusip number Applications Accepted bids " noncomp " foreign noncomp Auction price (rate) Both issues are dated May 10, 2018. The 13-week bills mature on Aug. 9, 2018; the 26-week bills mature on Nov. 8, 2018. Dollar Up As Europe Struggles BY DANIEL KRUGER The dollar rose broadly Monday as data continued to reflect disappointing performance for the European economy. The WSJ Dollar Index, which measures the currency against a basket of 16 others, rose for a second conCURRENCIES secutive session, climbing 0.2% to 86.33. The dollar gained for a second day against the euro, advancing 0.3% to $1.1923. The greenback has rallied 4.9% against the euro after closing at a 52-week low on Feb. 1. The dollar rose Monday after a report showed German factory orders unexpectedly dropped 0.9% in March compared with forecasts for a 0.5% pickup, while February’s result was revised to a 0.2% decline from a 0.3% increase. The soft patch of data is leading some investors to conclude that the European Central Bank may not be able to end its €30 billion ($35.8 billion) per month of bond purchases in September as some investors had expected. The dollar has surged on signs that the economy remains on track, while the euro has faltered as recent data have revealed a more sluggish pace of expansion. The U.S. grew at a faster pace than Europe in the first quarter after two years of expanding at a slower pace. The recent gains in the dollar are “all about relative growth differentials,” said Chris Wolfe, chief investment officer of First Republic Private Wealth Management. Oil Rises to Highest Level Since ’14 Crude prices in U.S. climb above $70 amid strong growth and geopolitical tensions BY ALISON SIDER AND STEPHANIE YANG U.S. oil prices rose above $70 for the first time since 2014, the latest sign that buoyant economic growth and investor concern about the risk of MidCOMMODITIES dle East conflict are once again reshaping the global energy industry. The milestone represents a victory for Saudi Arabia, which in late 2016 spearheaded a landmark production-cutting deal between the Organization of the Petroleum Exporting Countries and other major producers, including Russia. That helped dry up a large glut of oil more quickly than many on Wall Street expected. The rebound is also a relief to U.S. oil companies that endured an oil bust that sent U.S. crude prices as low as $26 in 2016. U.S. refiners have been among the best-performing stocks this year, as demand for the fuel they churn out continues to expand. Supply, demand and inventories are far from the only factors at work. Oil prices have risen nearly 14% in the past month as President Donald Trump has threatened to withdraw the U.S. from a 2015 agreement with Iran that eased international sanctions on Tehran in exchange for curbs to its nuclear program. President Trump tweeted Monday that he would announce a decision on U.S. participation in the agreement Tuesday afternoon. Mr. Trump’s decision over whether to withdraw from the accord raises the prospect of renewed sanctions that could curtail Iran’s oil output. “There was this view that we were postgeopolitics” as a result of an oversupplied market, said Helima Croft, head of commodity strategy at RBC Capital Markets. “Now, we’re really seeing the reckoning for that.” Rising crude prices will pressure margins at U.S. transportation companies like airlines, railroads, trucking companies and delivery services, which will be paying more for fuel after years of cost savings. Auto makers could have cause for concern, as the sport-utility vehicles and trucks that have driven U.S. auto sales lately may become less appealing to consumers as prices at the pump edge toward $3 a gallon. Light, sweet crude for June delivery rose 1.4%, to $70.73 a barrel, on the New York Mer- JAMES DURBIN FOR THE WALL STREET JOURNAL Treasurys Fall Ahead Of Data, Auctions Oil output in the U.S. has climbed above 10 million barrels a day, though OPEC cutbacks have whittled away a large glut of crude. cantile Exchange. Brent, the global benchmark, gained 1.7%, to $76.17, on ICE Futures Europe. Both benchmarks are at their highest since November 2014. Prices pared gains after Mr. Trump’s tweet in late trading, as traders and investors took profits ahead of the decision on Tuesday. Crown Prince Mohammed bin Salman of Saudi Arabia is aiming to push global oil prices to at least $80 a barrel, senior Saudi officials have said. Higher prices give the Saudis more breathing room to enact a wide-ranging economic overhaul, analysts said. But some OPEC members have been more cautious, looking to their prospects for production further out in the future. Iranian Oil Minister Bijan Zanganeh told The Wall Street Journal in March that oil prices around $60 were ideal. There are “countries who are concerned that too high an oil price will actually slow down demand,” said Amy Myers Jaffe, a senior fellow at the Council on Foreign Relations. “If you take the 10-year view, having a period of very high oil prices is definitely going to accelerate the trend away from oil.” Factors outside of OPEC’s control have helped lift oil prices. Venezuela’s output has been falling faster than most Shifting Sands Oil's rise to $70 a barrel has been driven by falling inventories and more-bullish sentiment. Total oil inventories in OECD countries compared with their ﬁve-year averages Net bets oil prices will rise, weekly 500,000 contracts 400 million barrels 300 400,000 200 300,000 100 200,000 0 100,000 –100 0 –200 2014 ’15 ’16 ’17 ’18 expected, as its political and economic crises worsen. “Every day there’s some new story that’s not good for their production capacity,” said Ms. Croft. Some analysts have said that geopolitical risk has caused unwarranted panic and if fears turn out to be overblown, investors could rush for U.S. stocks climbed Monday, led by shares of technology companies. The gains extend the Dow Jones Industrial Average’s winning streak to three sessions, as generally strong quarterly earnMONDAY’S ings reports MARKETS and Friday’s employment data have boosted sentiment in recent sessions. April’s jobs report showed unemployment in the U.S. fell to one of the lowest levels of the post-World War II era, reaffirming some investors’ confidence in solid and continuing economic growth. After having climbed more than 300 points Friday, the blue-chip index surged roughly 216 points in early trading Monday after U.S. crude oil topped $70 a barrel for the first time since 2014. But stocks trimmed those gains as President Donald Trump tweeted that he would announce his decision Tuesday on whether to withdraw from the Iran nuclear deal, which he has repeatedly criticized. Oil prices have risen more than 10% in the past month ahead of his decision, which analysts say could stifle Iranian exports and reduce global supply. “We still remain pretty bullish and favorable to Two Record-Setting Stocks 2.0% Amazon Apple S&P 500 1.5 1.0 0.5 0 9:30 10 11 noon higher equity prices this year,” said Jim Lubin, chief executive officer of Beacon Hill Private Wealth Management. Mr. Lubin said he has used recent pullbacks in the stock market as buying opportunities and remains optimistic about sectors like tech. Still, he said he is closely watching earnings releases and oil prices. The Dow industrials ended the day up 94.81 points, or 0.4%, to 24357.32. The S&P 500 rose 9.21 points, or 0.3%, to 2672.63, and the Nasdaq Composite added 55.60 points, or 0.8% to 7265.21. Technology shares in the S&P 500 rose for the third 1 2 the exits. “A de-escalation of the geopolitical tension is likely to trigger an outflow from investors,” Citigroup analysts cautioned last week. In the U.S., shale producers have already pounced on higher prices, hiring workers and buying equipment. Output has climbed above 10 million BY EUN-YOUNG JEONG Apple and Amazon set new highs Monday as the S&P 500 climbed for the second consecutive session. Performance, minute by minute Source: WSJ Market Data Group THE WALL STREET JOURNAL. Samsung ‘Fat Finger’ Sellers Face Charges Tech Stocks Lift S&P BY GUNJAN BANERJI AND NATHAN ALLEN 2018 Sources: Organization of the Petroleum Exporting Countries (inventories); CFTC (bets) barrels a day, its highest ever. “Higher oil prices are not necessarily bad for the U.S. economy. It’s not the same black and white that it used to be,” said Joe McMonigle, senior energy policy analyst at Hedgeye Risk Management. And since a ban on most crude-oil exports was lifted in 2015, shipments of U.S. crude have flowed to Europe, Asia, and South America and gained a foothold in markets once dominated by Middle Eastern suppliers. While U.S. consumers have already started paying more at the pump, oil prices would have to climb to $80 to $100 a barrel before it would crimp demand, refiner Valero Energy Corp. told investors last month. But the prospect of higher inflation could put pressure on the Federal Reserve to raise interest rates more aggressively. In March, the Fed’s preferred measure of inflation rose 2% compared with one year ago, the largest monthly increase since February 2017. “While we do not expect the rise in oil prices to have a big negative impact on the overall U.S. economy…we caution against being too complacent in assuming that growing U.S. energy production will insulate the economy,” Pacific Investment Management Co. said in a Monday blog post. 3 4 THE WALL STREET JOURNAL. straight day, adding 0.8%. Apple shares gained $1.33, or 0.7%, to $185.16, another record. Shares have rallied after the company last week unveiled a $100 billion buyback of stock and after Warren Buffett told CNBC that Berkshire Hathaway increased its large stake in the company by 75 million shares in the first quarter. Shares of Amazon.com also ticked higher, rising 1.2%, or 19.19 to 1,600.14, a record. In Asia early Tuesday, Hong Kong’s Hang Seng Index was up 1%, South Korea’s Kospi was up 0.5% and Japan’s Nikkei Stock Average was up 0.2% —Joanne Chiu contributed to this article SEOUL—Samsung Securities Co. said Monday it intends to file a criminal complaint against employees who sold shares the company mistakenly issued last month during a “fat finger” incident. The complaint from the stock-trading arm of South Korea’s largest conglomerate will be sent to prosecutors, who will review the case and determine whether to proceed with charges against employees for the April incident. The trading error occurred after an individual keyed in the wrong type of dividend payment, causing the brokerage to accidentally issue close to $105 billion of its shares— instead of billions of South Korean won—to more than 2,000 employees in a company stock-ownership plan. Shortly after the shares were issued, some employees sold them in the open market. Samsung Securities said its staff collectively sold shares valued at $186.9 million but said the individuals weren’t able to cash in because the trades were canceled before the settlement date. An initial investigation by financial regulators last month found that some staff had taken action despite the company’s alerts on the accidental shares. The Financial Supervisory Service’s pending deci- sion over what to do with Samsung Securities is one of the most pressing issues facing the watchdog’s chief regulator, Yoon Seok-hun, who will take office Tuesday. Samsung hasn’t decided on the number of employees it will seek legal action against, said a company spokeswoman. The company previously identified 16 people who sold the problematic shares and an additional six who had attempted to do so. $105B How much in shares Samsung Securities accidentally issued. The brokerage’s shares have fallen 8.4% since the April incident. Monday’s announcement had no impact on shares, as the market was closed for a public holiday. Samsung Securities said its 27 executives, including Chief Executive Koo Sung-Hoon, would purchase some of the firm’s treasury shares starting this month, in a show of support and to boost share value. “We will take this accident as a stepping stone to bring noticeable change and innovation to Samsung Securities,” Mr. Koo said in a news release. . B12 | Tuesday, May 8, 2018 THE WALL STREET JOURNAL. * * MARKETS Volatile Aluminum Price Stirs Concerns Investors, companies worry about inflation rising, profit margins getting squeezed Wild swings in aluminum prices have jolted buyers and sellers of the metal, threatening profits of companies that make everything from jets to beer cans. By Amrith Ramkumar, Scott Patterson and Sarah McFarlane The price for aluminum deliveries in three months’ time hit a more-than-six-year high recently. During April, prices also swung over their widest monthly range since at least 1997, the oldest data available, according to an analysis by WSJ Market Data Group. The volatility in aluminum threatens to squeeze profit margins of large companies that use the metal, at a time when higher fuel prices are already worrying manufacturers. The unpredictable aluminum prices also have contributed to worries over higher inflation, giving the Federal Reserve a freer hand to raise borrowing costs, which could become an added challenge for some companies. Trade tensions between Washington and much of the rest of the world are another big new worry. Last month, the U.S. sanctioned a big Russian aluminum producer, curtailing supplies. In some cases, buyers delayed shipments or canceled orders. Others have left shipments of the metal they received untouched, fearful of falling afoul of Washington’s restrictions. Aluminum executives say they can’t remember anything as jolting to the industry. Jeff Henderson, president of the Aluminum Extruders Council, which represents aluminumproduct makers, says he was Aluminum price swings hit investors following U.S. sanctions against Rusal.*† $2,600 a metric ton Russia is the largest aluminum producer, after China.** Production market share 2,500 April 23 U.S. softens stance 2,400 China 56.8% Russia Canada India UAE 5.7% 5.0% 5.0% 4.1% 2,300 2,200 2,100 April 6 Sanctions announced 2,000 1,900 April Others 23.3% May Nickel and palladium have swung wildly in recent weeks because of their ties to Russia as a major supply source.*‡ Rising prices of steel in the U.S. have worried some companies.†† The S&P 500 industrials sector has fallen amid worries about higher costs. 15% $900 a ton 680 10 Price performance 5 Nickel 0 Palladium –5 April May 850 660 800 640 750 620 700 600 650 580 Jan. Feb. March April Jan. Feb. March April *Data through Friday †London Metal Exchange aluminum for delivery in three months **Based on 2017 data ‡LME nickel for delivery in three months; most-actively-traded New York Mercantile Exchange palladium futures ††Midwest domestic hot-rolled coil steel futures Sources: CQG (aluminum, nickel, palladium); Aluminum Institute (production); FactSet (steel, industrials) THE WALL STREET JOURNAL. flooded with calls in the first few days following the announcement of the sanctions on April 6. “The aftereffects were complete shock and awe to the industry,” Mr. Henderson said. Consumers could get pinched, too, if prices stay high and companies pass on costs. Aluminum prices have eased somewhat after the U.S. Treasury spelled out ways for the sanctioned Russian company, United Co. Rusal, the world’s second-largest producer, to win relief. But the process could be lengthy, and industry veterans are bracing for continued volatility. Two weeks after Washington announced the Rusal sanctions, aluminum prices peaked intraday around $2,700 a metric ton, or 35% higher than presanctions levels. As traders bet that the U.S. might reverse course because European companies complained that Rusal metal is vital to their operations, prices retreated. They extended declines when the U.S. softened its stance on Rusal and when sanctioned majority owner, Russian billionaire Oleg Deripaska, agreed to sell his stake in the company to get it off Washington’s list. Still, aluminum remains 17% higher than before the sanctions, as there are few obvious buyers of Mr. Deripaska’s stake, and Washington will scrutinize any deal to ensure a real transfer of control. The sanctions have coincided with Trump administration tariffs on steel and aluminum imports, further limiting supply options for American buyers. That has boosted premiums for aluminum deliveries in the U.S. Russia, primarily through Rusal, supplied about 12% of all aluminum demand in the U.S. in 2017, according to the Aluminum Association. Analysts expect the company’s exports to halve over the next six months, as buyers move to find alternative suppliers ahead of the Treasury’s deadline for investors to exit from dealings with Rusal. Rusal’s deliveries in ports such as Baltimore and Houston are sitting unopened, their customers worried that taking delivery might violate sanctions, said Jorge Vazquez, founder of Harbor Aluminum Intelligence, an Austin, Texas, consultancy. HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY Email: firstname.lastname@example.org Mike Rapport, president of Corona, Calif.-based Merit Aluminum Corp., said he shrugged his shoulders when he first heard about the sanctions. Then calls from companies he buys aluminum from started flooding in. “My suppliers were freaking out,” Mr. Rapport said. “It was pandemonium.” Aluminum isn’t the only metal affected by the Trump administration’s moves. Steel prices in the U.S. have climbed as much as 30% this year because of the tariffs, though they have fallen back somewhat more recently. Nickel and palladium were swept up in the turmoil because of their ties to Russia as a supply source. Executives at some of the world’s biggest multinationals are fretting that all the disruption could hit their bottom lines. In recent weeks, executives at Whirlpool Corp., Harley-Davidson Inc. and Caterpillar Inc. all pointed to rising metals costs as potential headwinds. Boeing Co. and Ford Motor Co. said they are monitoring prices though they aren’t seeing any material effects. The threat of higher costs has weighed on metal-intensive companies. Industrial stocks in the S&P 500 have fallen in nine of the past 13 trading sessions. The group has slumped 8.9% since the start of February, compared with a 5.4% drop by the broader index. Whirlpool shares have slid 18% from their Jan. 26 peak of $185.97. While the home-appliances giant has benefited from favorable tax changes and tariffs on foreign-made washing machines, volatile steel and aluminum prices kept executives from raising their fullyear earnings guidance. “Raw material weighs pretty heavily in all parts of our global businesses,” Whirlpool Chief Executive Marc Bitzer told analysts on a call late last month. “That’s the prime reason why we still see” risk, he said. WSJ.com/Heard Oil Bulls Can’t Rely on Iran Curbs Starbucks and Nestlé: The oil market has surged on the expectation that President Donald Trump will reimpose sanctions on Iran. No matter what Mr. Trump decides, oil bulls and other beneficiaries of higher prices shouldn’t get too confident. The nearly 14% rally in Brent futures in the past month to around $75 a barrel is due in no small part to the view that he won’t prolong what he has dubbed “the worst deal ever.” But even new sanctions on Iran won’t necessarily remove a big chunk of oil supply. Instead there is a range of scenarios. Most are bearish for prices and for beneficiaries of the big rally, including Saudi Arabia. Under pressure from European allies, Mr. Trump could choose the middle ground by waiving sanctions but for a shorter time. That would prolong uncertainty but probably shock oil bulls betting on immediate disruption. He also could decide on Unsanctioned Crude output 12 million barrels a day Iran 10 Saudi Arabia U.S. 8 6 4 2 0 2015 ’16 ’17 ’18* *Iran and Saudi Arabia data are as of March, U.S. as of April Sources: OPEC monthly report, secondary sources; U.S. Energy Information Administration a partial reimposition. Even if Mr. Trump takes the harshest possible position, the rally still may be overdone. Since the U.S. doesn’t import Iranian crude, and enablers of Iranian exports such as European maritime insurers may continue doing business with Iran, the supply impact may be far milder than expected. Some THE WALL STREET JOURNAL. estimate the reduction could be as little as 250,000 barrels a day, compared with one million barrels before the 2015 deal. To put that into perspective, U.S. supply this year alone has increased by 865,000 barrels and continues to rise. A reimposition of sanctions, no matter what it does to oil prices, could have sur- prising consequences for major oil exporters. Iran and Russia have adapted to leaner times since prices crashed in 2014. Iran’s oil minister recently said his country prefers crude at $60 to $65 a barrel. The worry is that loftier prices might spark an eventual bust caused by a flood of supply from U.S. shale producers. Saudi Arabia, though, needs prices to rise further to fund its economic reforms. The International Monetary Fund recently estimated that the Saudis now need a crude price of $88 to balance their budget despite raising some subsidized domestic prices. Hungry for revenue, the Saudis may be tempted to fill any shortfall in the market created by renewed sanctions on Iran. Oil traders who have bought the Iran sanctions rumor should sell on the news no matter how bullish the headlines sound. —Spencer Jakab Glencore’s Daring Ways Have a Price Investors are willing to overlook a lot as long as you make them lots of money. When the cash machine slows—or a government decides to confiscate it—they are less forgiving. Miner and commodity trader Glencore has been raking it in, thanks largely to healthy commodity prices. The company generated $11.6 billion from operations in 2017, up 50% on the year, and returned $2.9 billion of that to shareholders’ pockets. Glencore has also become entangled in a parade of sticky situations in recent weeks. Its chief executive, Ivan Glasenberg, had to step down from the board of U.S.sanctioned Russian aluminum giant Rusal. Glencore’s Tight Link Glencore shares vs. copper price performance 25% 0 Copper (front month) Glencore –25 –50 –75 –100 2011 ’12 ’13 ’14 ’15 ’16 ’17 ’18 Sources: FactSet (Glencore); WSJ Market Data Group (copper) Katanga copper and cobalt mine is mired in an accounting scandal and faces questions over royalty payments due to sanctioned billionaire Dan Gertler. On Friday, Glencore said its deal to unload its holding in Russian oil gi- ant Rosneft had been canceled following Beijing’s investigation into the former chairman of CEFC China Energy, the stake’s putative buyer. Recent troubles also reflect a larger trend that could prove challenging to Glencore’s swashbuckling style. Economic nationalists are now in charge both in the U.S. and China. Both countries are showing increasing willingness to go after perceived corporate skulduggery. Meanwhile, governments in commodity-dependent emerging economies appear determined to grab a larger share of mining spoils now that prices have recovered. So far Glencore has weathered these storms and it re- mains reasonably valued: Its enterprise value is currently 5.5 times expected earnings before interest, taxes, depreciation and amortization compared with nearly six times for mining rivals Rio Tinto and BHP Billiton. And other miners, who must always be on the lookout for new assets, are far from immune to political risk. Still, shifting political winds pose a challenge to a company that prides itself on succeeding with challenging partnerships and locales. If prices for key commodities like copper keep drifting lower—as slower growth in China and a stronger dollar suggest they might—investors may be less forgiving. —Nathaniel Taplin A Bold Coffee Brew Starbucks and Nestlé are both struggling to boost growth, but the sales tie-up between the two companies shows the value of powerful brands. Nestlé agreed to pay Starbucks more than $7 billion to sell the chain’s packaged coffee beans, single-serve coffee packs and other products through retail and grocery stores around the world. Starbucks’s chief financial officer called the valuation “very, very compelling.” For Starbucks, the merits are obvious. Besides the big upfront payment, the deal will propel international expansion by plugging into Nestlé’s global footprint. Starbucks will continue to sell single-serve coffee canisters for global beverage giant JAB Holding’s Keurig machines. Now it will sell them as well for Nestlé’s Nespresso and Dolce Gusto machines, putting their beans in the two biggest brands of the machines. For Nestlé, the deal is part of a global shuffling of its product portfolio. It recently sold candy brands including Butterfinger, and will use the Starbucks deal to address its weakness in the U.S. coffee market. In the U.S., Nestlé has just 3% of the market for packaged coffee, compared with 15% for JAB, according to a note from Susquehanna Financial Group, setting up an American clash between the two European coffee giants. The question for Nestlé is whether this justifies the price, which is equivalent to around 3.6 times the sales, according to Bernstein analyst Andrew Wood. That is higher than the long-term average of 3.0 times sales for food deals, Mr. Wood said in a note. It is also higher than the 3.1 times trailing sales that JAB agreed to pay for Keurig in 2015. Starbucks will use the cash to buy back shares, boosting earnings per share. Nestlé shares rose 1.7% Monday, while Starbucks shares were little changed. With mergers rampant in the food and beverage industries these days, few deals are coming cheap. The complementary nature of Nestlé’s and Starbucks’s coffee businesses and geographic footprints make the deal appealing, even if the price is dear. —Aaron Back OVERHEARD Bring back the fat cats! Kindred Biosciences, a biotech startup focused on pets, announced Monday that the Food and Drug Administration has approved Mirataz, a drug to manage weight loss in felines. “Based on our market research, we estimate that veterinarians in the U.S. see as many as 9 million cats each year with unintended weight loss due to various underlying conditions.” said CEO Richard Chin. That suggests a hefty opportunity. Of course, Kindred will need to convert optimism into sales if it wants to maintain the momentum in the company’s stock price, which is up about 45% so far this year. A celebrity pitch man, or better yet pitch cat, might help. There was no word as of Monday morning whether Garfield is available.