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The Wall Street Journal - May 8, 2018

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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 wsjcontact@wsj.com or by calling 888-410-2667.
THE WALL STREET JOURNAL
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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.
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TIFFANY METRO WATCH
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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
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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
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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.
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ensure the people
you care about
will be taken
care of when you
move on?
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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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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
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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
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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.
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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.
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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.
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A10B | Tuesday, May 8, 2018
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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
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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. It has remained that way. “I’ve
been feeling really good,” she says.
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THE WALL STREET JOURNAL.
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
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Vancouver
70s
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10s
ip
Winnipeg
Seattle
60s
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Billings
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60s
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Ottawa
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60s
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40s
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t
Montreal
70s
20s
30s
A
Augusta
40s
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t
Toronto
A bany
b
Albany
Boston
t
60s
Buffalo
ff l
Hartford
artford
Milwaukee
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Detroit
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New
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Cleveland
Clevel d
Chicago
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Chic
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ake City
Des
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70s Philadelphia
Cheyenne
Che
h y
60s
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hil d lphi
h
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Omaha
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Pittsburgh
Sacramento
Indianapolis
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p
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Springfield
Denver
San
an Francisco
80s
90s
Washington
h gton
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on D.C.
D.C
DC
Kansas
Charleston
Charles
Topeka
Colorado
C l d
90s 70s Las
60s Richmond
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St. Louis
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Louisville
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Angeles
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Charlotte
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kl homa City
Memphis
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Albuquerque
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San Diego
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Tucson
Birmingham
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Houston
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ew Orleans
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an
n Antonio
A
70s
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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 / . Paul
Down
29 Classico
competitor
1 Baker’s amt.
14
15
16
32 Symbols of
2 Goes after
17
18
19
despotism
weeds, in a
way
33 Work involving
20
21
22
23
lots of drills
3 Follow them to
24 25
26 27
get out
35 Episodes filled
with flashbacks
28 29
30
4 Hat named for
a Moroccan city
36
Sow’s
opposite
31
32 33
34
35 36 37
5 More faithful
37 Caterer’s
38
39
40
41
containers
6 Lusters
42
43
44
45
39 Tattooist’s
7 Orioles legend
target
Ripken
46
47
48
41 Difficult hike
8 Chapel words
49 50 51
52 53
9 Stars
44 Cribbage board
sometimes
piece
54
55
56 57 58
lead to them
46
Hovering flyer
59
60
61 62
63
10 What a rat
47 Quenches
64
65
66
lacks
49 Discontinued
11
Five-alarm
67
68
69
Swedish autos
dish
50 Prepare for a
12 Sportscast
fight
SWEATER LOPPING | By Alex Bajcz
summary
51
Even
a little
Across
30 Salty or spicy
49 Hiring freezes?
13 Hair piece
52
Piece
of praise
rather
than
1 Swiping
54 Stella ___
18 Stephen of
sweet
53 Power lines?
(Belgian pilsner)
“The Crying
6 Speculative
31 Harry Potter’s
Game”
stories
55 Hullabaloo
57 Vicinity
half-giant friend
23
Crafty
11 Old PC monitor
56 Subway choice
58 Canasta player’s
34 Himalayan
goal
14 Ring master?
25 Mower brand
59 Narrow shoe
legend
width
61 Baseball’s
15 Wore
26 Appointment
35 Grand ___ (wine
Kinsler
book page
60 Legends about
16 That lady
designation)
stamps?
62 Org. with a
27 Currier’s
17 Spoils from a
38 Doesn’t answer
zombie
printmaking
heist?
64 “The Family
preparedness
partner
40 Pioneering
Circus” cartoonist
19 Wedding
blog
person
Keane
28
Deli
slicer
sculpture
setting
63 Londoner’s lav
42 Letters before
medium
65 Line of work
xis
20 W. 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 mcgurn@wsj.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 wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
“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
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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
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Mastercard Gold Card
TM
24K-Gold-Plated Metal Card
Apply now at luxurycard.com or call 844.LUX.CARD.
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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%
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* * * **
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.
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B4 | Tuesday, May 8, 2018
* ***
THE WALL STREET JOURNAL.
TECHNOLOGY
WSJ.com/Tech
Taiwan Firm Gets
Nod for ZTE Sales
BY DAN STRUMPF
Detecting Trends
Stocking Stores
Pricing
H&M analyzes blog posts, search terms, and
social media using machine learning, naturallanguage processing and image recognition.
Fashion experts use this quantitative analysis
to make better informed decisions.
Algorithms analyze inputs including historical
sales on every product in every store and
online trends, to arrive at unique sales
predictions per product and store.
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
... MaximIntProducts MXIM 56.41 0.41 People'sUtdFin PBCT 18.47 0.06
PEP 98.23 -0.76
iQIYI
IQ
16.34 0.17 McCormick MKC 104.05 0.85 PepsiCo
IronMountain IRM 34.44 -0.05 McCormickVtg MKC.V 104.37 0.99 PerkinElmer PKI 73.36 0.54
PRGO 77.24 0.98
IsraelChemicals ICL
4.57 -0.01 McDonalds MCD 165.00 -0.03 Perrigo
ItauUnibanco ITUB 13.32 -0.12 McKesson MCK 144.28 -2.54 PetroChina PTR 72.34 0.86
Medtronic MDT 84.82 3.74 PetroleoBrasil PBR 13.99 0.30
s MelcoResorts MLCO 32.75 0.13 PetroleoBrasilA PBR.A 12.77 0.13
MercadoLibre MELI 339.31 9.34 Pfizer
PFE 34.93 0.09
JD.com
JD 38.72 1.05 Merck
MRK 57.38 -0.37 PhilipMorris PM 81.51 -0.36
JPMorganChase JPM 109.37 0.94 MetLife
MET 46.95 0.72 s Phillips66 PSX 115.41 -0.20
JackHenry JKHY 121.80 -1.11 MettlerToledo MTD 552.90 -0.07 PinnacleFoods PF 62.99 0.11
JacobsEngg JEC 56.71 -0.13 MichaelKors KORS 61.55 -0.01 PinnacleWest PNW 79.75 -0.45
JamesHardie JHX 17.64 -0.16 MicroFocus MFGP 17.23 0.03 PioneerNatRscs PXD 195.80 1.61
JanusHenderson JHG 31.43 0.06 MicrochipTech MCHP 88.74 1.23 PlainsAllAmPipe PAA 24.45 0.10
JazzPharma JAZZ 147.03 -0.23 MicronTech MU 48.48 0.90 PlainsGP
PAGP 25.26 0.39
JetBlue
JBLU 19.25 -0.11 s Microsemi MSCC 67.76 2.16 PolarisIndustries PII 109.92 1.05
J&J
JNJ 123.59 -0.60 Microsoft MSFT 96.22 1.06 Pool
POOL 143.72 0.47
JohnsonControls JCI 36.65 0.40 MidAmApt MAA 93.05 0.71 Praxair
PX 155.26 0.69
JonesLang JLL 170.41 -1.26 Middleby
MIDD 128.96 2.50 PrincipalFin PFG 57.16 0.01
JuniperNetworks JNPR 25.93 0.27 MitsubishiUFJ MUFG 6.49 -0.03 Procter&Gamble PG 71.98 -0.45
KAR Auction KAR 53.28 -0.44 MizuhoFin MFG 3.63 0.01 Progressive PGR 60.70 0.89
KB Fin
KB 54.89 -0.41 MobileTeleSys MBT 10.38 0.18 Prologis
PLD 65.49 0.24
KKR
KKR 22.59 -0.41 MohawkInds MHK 215.41 -0.95 Proofpoint PFPT 124.43 1.94
KLA Tencor KLAC 106.71 0.05 MolsonCoors B TAP 59.63 -0.85 PrudentialFin PRU 100.50 -0.16
KT
KT 13.54 0.09 Momo
MOMO 38.03 2.67 Prudential PUK 51.58 0.18
KSCitySouthern KSU 106.89 -0.66 Mondelez MDLZ 38.69 -0.21 PublicServiceEnt PEG 51.88 -0.22
Kellogg
K
60.49 0.69 Monsanto MON 125.05 0.22 PublicStorage PSA 209.98 2.59
KeyCorp
KEY 19.73 0.03 MonsterBev MNST 53.31 0.55 PulteGroup PHM 31.01 0.03
KeysightTechs KEYS 52.24 -0.19 Moody's
QGEN 34.60 0.29
MCO 167.39 1.08 Qiagen
KilroyRealty KRC 73.80 0.57 MorganStanley MS 52.39 0.99 Qorvo
QRVO 79.64 0.15
KimberlyClark KMB 103.16 -0.57 Mosaic
MOS 27.56 0.13 Qualcomm QCOM 53.01 0.52
KimcoRealty KIM 14.63 -0.04 MotorolaSol MSI 107.31 -0.72 QuestDiag DGX 101.10 -0.40
KinderMorgan KMI 16.21 0.10 Mylan
MYL 36.11 0.13 QurateQVC A QRTEA 24.04 0.29
Knight-Swift KNX 38.96
... 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: heard@wsj.com
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.
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