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The Wall Street Journal December 14 2017

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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THURSDAY, DECEMBER 14, 2017 ~ VOL. CCLXX NO. 140
* * * * * *
DJIA 24585.43 À 80.63 0.3%
NASDAQ 6875.80 À 0.2%
STOXX 600 390.70 g 0.2%
Corporate rate would
be higher than first
proposed, top individual
rate lower in new bill
GOLD $1,245.40 À $6.90
EURO $1.1827
YEN 112.54
BY RICHARD RUBIN
AND SIOBHAN HUGHES
WASHINGTON—The highestearning Americans will get a
lower tax rate and corporations
will pay slightly more than in
The Fed voted to raise
short-term interest rates for
the third time this year and
signaled it would stay on a
similar path in 2018 amid a
leadership transition. A1
The Dow ended 80.63
points higher at a record
24585.43 after the Fed’s rate
decision and forecast. B12
Finishing Touches
2.5%
Fashion retailer Inditex
saw continued pressure on
its profit margins. B3
World-Wide
House and Senate Republicans reached a deal
on the party’s competing
tax bills. The agreement
would set the top individual
rate at 37% and the corporate rate at 21%. A1, A6, B3
Moore’s defeat in the Alabama Senate race sparked
finger-pointing between the
GOP establishment and
Trump’s insurgent allies. A1
A top Justice official defended the integrity of the
Russia probe as Republicans
complained about text messages by a Mueller staffer. A4
Excluding
food and energy
0
2014
’15
’16
’17
Unemployment
1.50%
8%
1.25
JONATHAN ERNST/REUTERS
6
1.00
4
0.75
2
0
’15
’16
Britain’s May suffered a
political setback as lawmakers approved a measure
giving Parliament a greater
say on Brexit terms. A20
The Trump administration
is turning its focus to Iran
as the campaign against Islamic State winds down. A8
South Korea’s leader arrived in China for a visit
aimed at repairing ties and
coordinating policy on North
Korea’s nuclear program. A11
The U.S. and Japan urged
Saudi Arabia not to sell an
Aramco stake to China, fearing Beijing would have too
much sway in the Mideast. A8
The number of Americans
severely behind on payments
on federal student loans hit
4.6 million last quarter. A3
An influential politician
in Indonesia was indicted
over his alleged role in a
corruption scandal. A11
Opinion.............. A17-19
Sports........................ A16
Streetwise............. B10
Technology............... B4
U.S. News............. A2-7
Weather................... A16
World News A8-11,20
>
Walt Disney Co. is close to a
deal to acquire a large piece of
21st Century Fox Inc., people
familiar with the situation say,
in a pact that could help the
entertainment giant accelerate
its ambitions in streaming media, shore up its television business and grab hold of lucrative
movie franchises.
Federal-funds rate target
2015
2016
Note: Inflation and unemployment are seasonally adjusted
Heard on the Street: Fed gets
it right, but risk remains... B11
Heard on the Street: Will deal
draw penalty over sports?... B11
2017
0
Sources: Federal Reserve Bank of St. Louis (inflation); Labor Dept. (unemployment, Fed funds target)
Fed Hikes Rates as Economy Picks Up
WASHINGTON—The Federal
Reserve showed continued optimism about the U.S. economy in
voting Wednesday to raise
short-term interest rates for the
third time this year, and signaling it would stay on a similar
path next year amid a leadership transition.
Defeat
Heightens
Divisions
In GOP
The upset defeat of Republican Roy Moore in Alabama’s
special Senate election sparked
finger-pointing Wednesday between the GOP establishment,
who opposed Mr. Moore, and
Donald Trump’s insurgent allies led by Steve Bannon, who
backed him.
By Janet Hook,
Kristina Peterson
and Michael C. Bender
The bickering set off by the
victory of Democrat Doug
Jones heightened anxieties
about GOP prospects in the
2018 midterm elections, where
Republicans will seek to hold
onto their majorities in the
U.S. Senate and House.
“If we are to Make America
Great Again for all Americans,
Bannon must go!” said Rep.
Peter King (R., N.Y.) on Twitter
on Wednesday.
For his part, Mr. Bannon is
already eyeing 10 Republican
primaries in which he has endorsed or might back insurgent candidates. That sets up
intra-party fights that could
extend deep into the 2018 midterm primaries in states that
include Montana, Tennessee
and Arizona.
Meanwhile, the loss in Alabama will thin an already-narrow GOP Senate majority to
51-49, which will likely have its
biggest impact when the Senate considers Mr. Trump’s judicial and executive-branch
nominees next year.
Please see PARTY page A7
Results are examined for
clues to 2018 midterms...... A7
Republicans are unlikely to
sway Jones................................. A7
Officials nudged their economic-growth estimates higher
for the next few years on expectations that congressional Republicans will pass tax cuts. But
the Fed policy makers’ new projections suggest the boost
wouldn’t be so large that they
would have to speed up the
pace of rate increases to guard
against too much inflation.
“At the moment the U.S.
economy is performing well,”
Fed Chairwoman Janet Yellen
said at a press conference after
the central bank’s two-day policy meeting ended Wednesday.
“The growth that we’re seeing, it’s not based on, for example, an unsustainable buildup of
debt,” she added. “The global
economy is doing well. We’re in
By Ben Fritz,
Dana Mattioli
and Joe Flint
a synchronized expansion. This
is the first time in many years
we’ve seen this.”
The Fed said it would increase its benchmark federalfunds rate Thursday by a quarter percentage point to a range
Please see FED page A6
’17
0.25
BY NICK TIMIRAOS
Firms look to reorganize to
cut tax rates.............................. A6
The deal, expected to be announced Thursday, would value
the assets Disney is acquiring
at $60 billion, including debt.
Those assets include the Twentieth Century Fox movie and
TV studio, cable channels including regional sports networks and key international
properties. They don’t include
properties such as Fox News
and broadcast assets.
The pact would value 21st
Century Fox as a whole at
around $40 a share, the people
said. Disney would pay $28 to
$29 a share for Fox assets, and
the all-stock deal would leave
Fox investors owning about 25%
of the enlarged Disney, one of
Please see DISNEY page A10
0.50
2014
no
Minnesota’s governor
plans to name the Democratic lieutenant governor to
succeed Sen. Franken. A4
Overall
1.0
n-
China’s HNA sought to reassure lenders and investors
after sharp drops in some
units’ stocks and bonds. B2
Target
1.5
0.5
Toyota’s president said
hybrid and electric vehicles
would make up half of its
global sales by 2030. B2
Three men have admitted
to creating a computer network used in an online attack that blocked out swaths
of the web last year. B4
2.0
hit because they would lose the
ability to fully deduct state and
local taxes as part of the overhaul. Rather than fully repeal
the deduction as planned, the
compromise would cap it at
$10,000, a GOP aide said.
The corporate rate would be
21%, the people said. That is
higher than the 20% rate RePlease see TAXES page A6
Disney
Poised to
Acquire
Fox Assets
Fed raised rates five times during Yellen’s tenure, as the economy strengthened.
Based on price index for personal consumption expenditures
Target is paying $550 million to acquire grocery delivery startup Shipt, moving
to match rivals’ services. B1
T-Mobile said it is acquiring a streaming video
startup and will launch its
own paid-TV service. B6
closed process, but to no avail.
The agreement would set the
top individual tax rate at 37%,
two people familiar with the
deal said. That is lower than today’s 39.6% and lower than the
top rate in each of the bills that
passed the House and Senate.
Republicans said they were
considering that change to address concerns from high-earning residents in high-tax states
like California, New York and
New Jersey who would take a
Inflation
Commodities traders,
weary of modest returns,
are rushing into the booming bitcoin market. B1, B10
Google opened an AI lab
in Beijing in a bid to attract
China’s tech prodigies. B4
deal,” Senate Finance Committee Chairman Orrin Hatch (R.,
Utah) told reporters in the Capitol on Wednesday.
Republicans hashed out the
agreement without input from
Democrats in advance of a formal meeting of the bipartisan
House-Senate conference committee on Wednesday, and they
announced the deal just before
heading to a lunch at the White
House with Mr. Trump. Democrats complained about the
ly
.
isney is close to a deal
to acquire a large piece
of Fox in a pact that could
help the entertainment giant
accelerate its ambitions in
streaming media, shore up its
TV business and grab hold of
lucrative movie franchises. A1
D
previous plans under a deal
House and Senate Republicans
reached on the party’s competing tax-overhaul bills.
Full details of what is likely
to be a $1.4 trillion tax cut over
a decade will be released this
week. If the House and Senate
both pass the measure in votes
that could come next week,
President Donald Trump could
sign it into law before Christmas.
“We’ve got a pretty good
co Fo
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on
Business & Finance
s Copyright 2017 Dow Jones &
Company. All Rights Reserved
OIL $56.60 g $0.54
GOP Closes In on Final Tax Plan
What’s
News
CONTENTS
Business News...... B3
Crossword.............. A16
Heard on Street.. B11
Life & Arts...... A13-15
Management.......... B6
Markets............. B11-12
10-YR. TREAS. À 14/32 , yield 2.353%
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WSJ.com
The EU, a Disciple of Free
Trade, Is Erecting Barriers
INSIDE
Economic nationalism is driving new rules that favor member states
BY VALENTINA POP
The world’s most ambitious free-trade
area is colliding with a surge in economic
nationalism.
Unfettered trade is the law of the land
across the 28-country European Union, and
Emmanuel Macron won the French presidency in May on a campaign of more European unity, not less, proudly posing with the
EU’s blue and gold flag.
In July, though, Mr. Macron nationalized a
French shipyard to block its takeover by Italian company Fincantieri SpA, citing what he
called “national interest.” The takeover went
ahead three months later, after Mr. Macron
secured unusual guarantees for the French
state. He supports limiting employment from
lower-paying countries such as Poland and
Romania. A French food-labeling rule cowritten by Mr. Macron when he was economy minister has gutted dairy imports from
Belgium, Sweden and Germany. All six counPlease see EU page A12
Dotards and Hooligans 101: Why
Scholars Study N. Korean Insults
i
i
i
Parsing Pyongyang’s invective, academics
search for insights about Kim Jong Un
BY JONATHAN CHENG
While military experts analyze North Korea’s nuclear and
SEOUL—Mason Richey, an missile programs, a small
American scholar in Seoul, has group of academics is focused
spent thousands of hours dis- on a less-studied component of
secting a vivid language that Pyongyang’s arsenal: its rich
emerged in the latter half of collection of over-the-top insults.
the 20th century.
The scholars are
He recently preapplying high-powsented academic findered mathematical
ings on the frequency
tools such as negative
of phrases such as
binomial regressions
“the desperate shrill
and Jaccard coefficry of a psychopath
cients to better unon his deathbed” and
derstand the verbal
“the kingpin of hidabuse that Kim Jong
eous state-sponsored
Un dishes out to his
terrorism and huenemies.
man-rights tundra.”
In doing so, they
At one conference,
Kim Jong Un
are hoping to find
Mr. Richey recalls being interrupted during a pre- some predictive pattern in putsentation by giggles from the downs like “imbeciles in the
dumping ground of history,”
audience.
“Sometimes,” Mr. Richey “ogres keen on aggression and
says, “I can’t believe I’m study- mass killing,” and “dotard”—
Please see INSULT page A12
ing this.”
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Copyright © 2017, Oracle and/or its affiliates. All rights reserved.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A2 | Thursday, December 14, 2017
THE WALL STREET JOURNAL.
* ***
U.S. NEWS
M Y L A G O S M Y W AY
CAPITAL ACCOUNT | By Greg Ip
Bitcoin: a Mania, Not a Currency
AVA I L AB LE AT L A G O S . C O M
BLOOM I NGDALE’S 59TH ST
T
Cryptocurrencies have been highly volatile. Change in their value*:
20,000%
Ethereum
15,000
Bitcoin
10,000
5,000
Litecoin
Ripple
Bitcoin Cash
0
–5,000
2013
’14
’15
’16
’17
*Change since April 23, 2013 for Bitcoin and Litecoin; Aug. 4, 2013 for Ripple; Aug. 7, 2015 for
Ethereum; July 23, 2017 for Bitcoin Cash
Source: CoinMarketCap
mania. It prompted Securities
and Exchange Commission
Chairman Jay Clayton this
week to warn against conflating currencies and securities.
“Tokens and offerings that incorporate features and marketing efforts that emphasize
the potential for profits based
on the entrepreneurial or
managerial efforts of others
continue to contain the hallmarks of a security,” he said,
and must be regulated as such.
The surge also undermines
the argument that a cryptocurrency’s limited issuance
protects it from inflationprone governments. As the
number of currencies grows,
each becomes the digital
equivalent of a limited-edition
commemorative plate.
The more digital currencies
resemble speculative securi-
THE WALL STREET JOURNAL.
ties, the less suitable they become as a medium of exchange. Consumers hold
dollars and businesses accept
them because their purchasing
power doesn’t change much.
That isn’t true of bitcoin: It
has moved an average of 3% a
day since 2012, and on 5% of
those days it moved more
than 10%. In that period, gold
moved on average 0.7% a day
and the dollar 0.3% against a
basket of currencies. Neither
recorded a move of 10% or
greater. With bitcoin, what
should be your safest asset,
cash, becomes your riskiest.
Some of the advantages of
cryptocurrencies have proved
overhyped. Proponents tout
their anonymity: All you need
to transact is a public and private key. This is of particular
appeal to anyone on the
co Fo
m rp
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ci on
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e
on
his distinction is being
blurred. The surge in
cryptocurrencies, especially via “initial coin offerings,” is similar to the wave of
initial public stock offerings
that accompany equity-market
A Stable Store of Value?
THE WALL STREET JOURNAL
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(Eastern Edition ISSN 0099-9660)
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CORRECTIONS AMPLIFICATIONS
Republican candidate Roy
Moore voted at Gallant Volunteer Fire Department headquarters in Gallant, Ala. In
some editions Wednesday, a
Page One article about the Alabama Senate race misspelled
it as Gallatin. The article in
some editions also misspelled
the last name of Todd Akin, a
former Missouri Senate candidate, as Aiken.
Business development companies are publicly listed investment vehicles that are exempt from corporate taxes.
They make loans to other companies and pay out the high
yields they receive to shareholders in the form of taxable
dividends. A Business & Finance
article Tuesday about KKR &
Co.’s direct lending business
didn’t make clear who pays
taxes on the BDCs’ income.
SPDR S&P 500 ETF Trust
fringes of the law. Yet it was
naive to think law enforcement would stand by as a
chunk of the economy went
into the digital underground.
Digital currencies acquired
from selling drugs or hacking
computers, like bundles of
wrinkled bank notes, must
eventually enter the banking
system to be spent. The U.S.
Treasury has already declared
that anti-money-laundering
laws and the Bank Secrecy Act
apply to digital currency exchanges and banks handling
digital currency transactions.
In July, Treasury’s Financial
Crimes Enforcement Network
hit BTC-e, a digital-currency
exchange based in Bulgaria,
with a $110 million penalty for
facilitating “ransomware, computer hacking, identity theft,
tax refund fraud schemes,
public corruption, and drug
trafficking.” Its alleged Russian operator was arrested.
Meanwhile, the supposed
efficiency of bitcoin has been
compromised by bottlenecks
in processing that can delay a
transaction’s settlement by
hours or even days—a process
you can expedite if you pay an
added fee.
S
o do digital currencies
threaten regular currencies? In one key respect,
yes: They’re cheaper. Credit
and debit cards and money
transfers incur billions in fees
that cover banks’ costs (including fraud) and risks plus
plenty of pure profit. The “fintech” revolution that has
brought PayPal, Square and
the Starbucks app has made
paying simpler, not cheaper.
This is a system ripe for
disruption, but it doesn’t require a new currency outside
the control of a central bank,
just a new payment system.
Who might provide that
system? Maybe the central
bank itself. Cryptocurrency
transactions are recorded on a
ledger distributed among users called the blockchain
rather than on a central ledger
maintained by a private company or the government. The
Fed already issues paper currency that you use for free. In
theory, it could use the blockchain to issue digital currency
you could also use for free.
David Andolfatto, an economist and blogger at the Federal Reserve Bank of St. Louis,
says something like this could
be a godsend to the unbanked—people who don’t use
payment cards or bank accounts because of cost, inconvenience or lack of an address.
Such applications would make
bitcoin a success, “even if bitcoin, narrowly defined, fails to
serve as money.”
ly
.
C AV I A R C O L L E C T I O N S
If you own
bitcoin, congratulations.
Its explosive
rise this year
has earned you
the right to gloat. Unfortunately, if you also thought bitcoin, or any cryptocurrency,
would one day displace regular money, those prospects
have never looked worse.
Ever since an anonymous
creator launched bitcoin in
2009, advocates have hoped
that cryptocurrencies could do
the job of dollars, euros and
yen but more efficiently,
cheaply and anonymously.
To do so, a cryptocurrency
would have to fulfill at least
two of the basic functions of
money: a stable store of value
and a widely used medium of
exchange. Bitcoin’s wild ride
shows it can’t fulfill either.
Whether bitcoin is a bubble
is beside the point. That the
question is asked shows bitcoin can no longer be thought
of as a currency. A stock, bond
or property deed confers ownership of a stream of future
income. From that you can
judge intrinsic value and thus
whether its current price represents a bubble. Currencies
aren’t supposed to have any
intrinsic value other than the
goods or services they can buy
some time in the future.
(SPY) had volume of 125.26
million for the period ended
Nov. 30. A correction published
Saturday incorrectly said the
exchange-traded fund’s volume
was 1.253 billion.
The “Tracking ExchangeTraded Portfolios” table for
the period ended Nov. 30 displayed volume figures in tens
(0s). The table in the Investing
in Funds report on Dec. 4 incorrectly labeled the volume
column as in thousands (000s).
The table for the period ended
May 31, which was published in
the June 5 Investing in Funds
report, made the same error.
The last name of Michael
Kanter, executive vice president of the Permanente Federation, was misspelled as Kantor in a Sept. 13 Innovations in
Health Care article about hospitals’ efforts to curb unnecessary care.
Readers can alert The Wall Street Journal to any errors in news articles by
emailing wsjcontact@wsj.com or by calling 888-410-2667.
Bitcoin fever spreads to
commodity traders.................. B1
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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Thursday, December 14, 2017 | A3
* *
U.S. NEWS
GREG SORBER/ALBUQUERQUE JOURNAL/ZUMA PRESS
In New Mexico, Employees Enjoy the Gift of Giving
PILEUP: Over 3,000 gifts collected by Sandia National Laboratories employees, intended for foster children, were unloaded Wednesday.
Massachusetts Considers Defaults
Rise for
Mandatory 3-Day Rehab Student
1,500
1,000
500
0
2000
’05
Loans
BY JOSH MITCHELL
The number of Americans
severely behind on payments
on federal student loans
reached roughly 4.6 million in
the third quarter, a doubling
from four years ago despite a
historically long stretch of U.S.
job creation and steady economic growth.
In the third quarter alone,
the count of such defaulted
borrowers—defined by the
government as those who haven’t made a payment in at
least a year—grew by nearly
274,000, according to Education Department data.
The total number of defaulted borrowers represents
about 22% of the Americans
who were required to be paying down their federal student
loans as of Sept. 30. That figure has increased from 17%
four years earlier.
The money they owe is becoming a bigger share of total
outstanding student debt in
repayment.
Defaulted student loans totaled $84 billion at the end of
the quarter.
New York Federal Reserve
research has shown that many
borrowers who fall behind on
payments dropped out of college before earning a degree,
and attended for-profit schools
and community colleges.
In some ways, the outlook
for the federal student-loan
program has improved. Defaults grew at a slower pace in
the third quarter compared
with a year earlier.
co Fo
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on
2,000 deaths
at-risk overdose victims involuntarily for 72 hours, but his
plan failed to make last year’s
final opioid bill. Doctors and
lawmakers raised worries
ranging from civil-liberties infringement to warehousing patients in ill-equipped departments.
Many states have emergency-commitment laws that
are often aimed at keeping intoxicated people safe, while
Massachusetts is notably targeting the gap between overdoses and treatment, Ms.
Green said.
In a new proposal unveiled
last month, Mr. Baker seeks to
give clinical staff the power to
send patients to a treatment
center without court approval.
The centers then can hold
them up to three days. The
bill, forecast to cost up to $152
million over five years, includes other measures aimed
at the overdose crisis. The
state’s Medicaid program, or
other insurance, would cover
the cost to transport and care
for patients
Several ER doctors, including leaders of the Massachusetts College of Emergency
Physicians, expressed cautious
support for the governor’s revamped plan, but also voiced
concerns. They stressed the
need for adequate treatment
beds and said doctors should
explore all voluntary treatment options first.
“Involuntary hold is a feasible tool that can literally save
a life,” said Melisa Lai-Becker,
emergency-department chief
at a Cambridge Health Alliance
hospital in Everett, Mass. But
the option should only be “the
nuclear button,” she said.
ly
.
The opioid crisis has hit
Massachusetts hard, killing
almost an estimated 8,000
people in the last five years.
’10
’15
Notes: Totals for 2015 through 2017 include
estimates; 2017 through September
Source: Massachusetts Department of
Public Health
THE WALL STREET JOURNAL.
Sherry Green, who until
earlier this month was chief
executive at the National Alliance for Model State Drug
Laws, said she expects other
states to closely watch the aggressive Massachusetts approach.
Some Massachusetts hospitals also have recovery
coaches meet with patients.
Also, Gov. Charlie Baker signed
a bill last year requiring hospitals to offer overdose patients a substance-abuse evaluation and provide treatment
information within 24 hours.
But the governor’s office said
many patients are turning this
offer down.
To help recalcitrant patients, the Republican governor wanted ER staff to hold
no
When Julia Raposa overdosed on opioids last year, she
was rushed to a hospital in
Leominster, Mass., where her
aunt says she was treated and
released within 90 minutes.
Days later, Ms. Raposa’s next
overdose killed her.
In an aggressive, new proposal, Massachusetts authorities want to allow hospital
staff to send overdose patients
to treatment centers against
their will for up to three days.
The goal is to buy more time
for addicts facing imminent
risks to accept longer-term
treatment.
“Often people leave the
emergency room, right back
onto the street to find their
next fix,” said Marylou Sudders, the Massachusetts Secretary for Health and Human
Services.
An abstract published in
October and led by an emergency physician at Boston’s
Brigham and Women’s Hospital found one in 10 Massachusetts patients who initially
survived after first responders
treated them with naloxone
died within a year.
“We’re missing that window of opportunity to help
hundreds if not thousands of
people,” said Dina Favreau,
who cared for Ms. Raposa, her
24-year-old niece.
Efforts are growing around
the U.S. to bridge this hospital
gap. Softer approaches are
more common, often employing recovery experts, some of
whom are former addicts
themselves, who meet overdose patients in the hospital
and urge treatment.
Deadly Toll
n-
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A4 | Thursday, December 14, 2017
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THE WALL STREET JOURNAL.
****
U.S. NEWS
Top DOJ Official Defends Russia Probe
Rod Rosenstein says
he’s working to ensure
politics doesn’t affect
election investigation
‘I want to believe
the path u threw
out 4 consideration
in Andy’s office —
that there’s no way
he gets elected —
but I’m afraid we
can’t take that
risk. It’s like an
insurance policy in
unlikely event u die
be4 you’re 40.’
Rod Rosenstein told Congress that Robert Mueller took ‘appropriate action’ on FBI agent’s texts.
a series of tense exchanges between Republican lawmakers
and Mr. Rosenstein, who said
he was working with Mr.
Mueller to ensure the investigation wouldn’t be affected by
the political affiliations of its
prosecutors.
But Republicans questioned
whether those efforts would be
sufficient. “What happens when
people who are supposed to
cure the conflict of interest have
even greater conflicts of interest
than those they replace?” said
Rep. Trey Gowdy (R, S.C.)
Mr. Rosenstein said Mr.
Mueller took “appropriate action” and removed the FBI
agent, Peter Strzok, immediately upon learning of the alleged texts in July. Mr. Strzok
was reassigned to the human
resources department of the
Sen. Franken’s Replacement Picked
Minnesota’s Democratic
governor said he planned to
appoint Lt. Gov. Tina Smith
to succeed Democratic Sen. Al
Franken, who is resigning
over allegations of sexual
misconduct, and endorsed her
for next year’s special election for the seat.
Ms. Smith, 59 years old,
joined Minnesota Gov. Mark
Dayton for his second term
starting in 2015. She previously worked as Mr. Dayton’s
chief of staff.
The seat will be subject to
a special election in November to fill the remaining two
years of Mr. Franken’s term,
which expires in January
2021. Ms. Smith said she
plans to run in the 2018 race.
“I will run in that election
and I will do my best to earn
Minnesotans’ support,” Ms.
Smith said at a news conference with Mr. Dayton.
Ms. Smith said she would be
a “fierce advocate in the United
States Senate for economic opportunity and fairness.”
Ms. Smith’s plans to run in
2018 could quell some Democrats’ concerns about hanging
on to the seat after speculation
that Mr. Dayton might appoint
a caretaker with no ambitions
to stand for election. Democrats feared a wide-open party
primary could make it easier
for a Republican to stage an
upset in the blue-leaning state,
which voted narrowly for Hillary Clinton in the 2016 presidential race.
“High-quality Republican
candidates will come out of the
woodwork for this seat,” said
Kathryn Pearson, a politicalscience professor at the University of Minnesota. “It only
increases the excitement and
intensity of what was already
going to be a big election year
in Minnesota.”
safe bet for re-election.
Mr. Franken, a former comedian, said last week that
he would resign after several
women accused him of groping or forcibly kissing them,
during rehearsals for shows
or while posing for photos.
While denying some of the
accusations or saying he remembers the incidents differently, Mr. Franken apologized and said he has “let a
lot of people down.”
Ms. Smith would bring the
total number of women in
the Senate to a record-breaking 22. Of those women, 17
are Democrats. With Ms.
Smith’s appointment, Minnesota would join three other
states—California,
New
Hampshire and Washington—
that are represented by two
women senators.
FBI. Lisa Page, the lawyer he exchanged texts with, had already
left the special counsel’s team.
“We have employees with
political opinions. It is our responsibility to make sure those
opinions do not influence their
actions,” Mr. Rosenstein said.
WASHINGTON WIRE
WHITE HOUSE
SENATE
Ex-‘Apprentice’ Star
Is Leaving Her Post
Schumer Asks for
Probe of Document
Omarosa Manigault Newman,
a former star of “The Apprentice” and one of President Donald Trump’s most prominent African-American aides, is leaving
her post as a presidential adviser, the White House said
Wednesday morning.
A White House statement said
Ms. Manigault Newman resigned
“to pursue other opportunities.”
The resignation won’t take effect
until Jan. 20, 2018. “We wish her
the best in future endeavors,” the
White House said.
Ms. Manigault Newman’s departure was abrupt, according to
a White House official. Ms. Manigault Newman didn’t respond to
a request for comment.
—Eli Stokols
Sen. Chuck Schumer said
Wednesday that he is "pursuing
every legal path" against whoever circulated a forged document accusing him of sexual harassment. Several media outlets
were shopped a document alleging wrongdoing by Mr. Schumer
and listing allegations by a former Schumer staff aide.
The media outlet Axios said it
had contacted the former staffer,
who said the charges were untrue and her signature had been
forged.
Mr. Schumer's office asked the
Capitol Police to investigate. "The
document is a forged document
and every allegation is false," a
Schumer spokesman said.
—Associated Press
co Fo
m rp
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er rs
ci on
al a
us l,
e
on
BY NATALIE ANDREWS
Text from FBI agent
Peter Strzok to agency
lawyer Lisa Page
ly
.
A top Justice Department
official on Wednesday defended the integrity of the
agency’s investigation into
Russian interference in the
2016 election, as Republicans
stepped up complaints about
politically tinged text messages
sent by a member of Special
Counsel Robert Mueller’s team.
Deputy Attorney General Rod
Rosenstein testified in a fourhour hearing before the House
Judiciary Committee one day
after text messages between a
top FBI agent and an FBI lawyer
disparaging
then-candidate
Donald Trump were turned
over to Congress, including
messages calling Mr. Trump an
“idiot” and a “menace.”
The new revelations, which
came late Tuesday, prompted
JIM LO SCALZO/EPA-EFE/REX/SHUTTERSTOCK
BY ARUNA VISWANATHA
AND DEL QUENTIN WILBER
Minnesota Lt. Gov.
Smith would bring
the number of women
in the Senate to 22.
Last week, Cook Political
Report rated the 2018 race to
fill Mr. Franken’s seat a tossup, citing a “very fluid” situation. Also on the ballot in 2018
is Democratic Sen. Amy Klobuchar, but she is considered a
Mr. Strzok and Ms. Page
couldn’t be reached for comment.
Since Mr. Mueller was appointed as special counsel in
May, the Russia investigation
has to date led to guilty pleas
from two Trump campaign advisers, including former national security adviser Michael
Flynn, who admitted to misleading the FBI about their
contacts with Russia, and the
public indictment of two other
campaign officials, including
Trump campaign manager
Paul Manafort, for alleged financial misdeeds in work that
predated the campaign. They
have pleaded not guilty and
are fighting the charges in
court.
In recent weeks, Republicans
have started calling into question the impartiality of the
Mueller team, citing Mr.
Strzok’s text messages and the
donations some of Mr. Mueller’s
prosecutors have made to Democrats. Democrats cast such
complaints as politically motivated attempts to distract from
a legitimate probe.
Lawmakers Seek Checks
On Phony Web Comments
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Some lawmakers are calling
on the Federal Communications Commission to add new
safeguards against fraudulent
public online comments ahead
of an FCC vote Thursday to roll
back rules that require internet-service providers to treat
all web traffic equally.
Sen. Ron Wyden, ranking
Democrat on the Senate Finance Committee, referring to
a Wall Street Journal report on
Tuesday that exposed thousands of fake comments on
government websites—sometimes using stolen identifies—
said “the FCC should call off its
vote this week” on the new
“net neutrality” rules.
He said the agency should
“add new checks against fraudulent comments and restart the
comment period to allow real
Americans to have their voices
heard.”
Rep. Mike Coffman, a Colorado Republican, separately
wrote the FCC asking the
agency to delay the vote, saying Congress should resolve
the matter.
At issue is an important element of democracy: the public’s ability to participate in
federal rule making. Fake comments can corrupt the publiccomment process, mandated by
law, which can influence outcomes of regulations affecting
millions.
There appeared to be no
other instance of fake online
commenting on a public government forum on this scale
before. It is difficult to determine who was behind phony
comments.
FCC Chairman Ajit Pai has
rebuffed calls for a delay and
has said a vote will proceed as
planned Thursday. He didn’t
respond to requests for comment on Wednesday. An FCC
spokesman said last week the
agency “strongly” opposes the
submission of fake comments
but also wants to “make it
easy” for the public to participate in FCC proceedings.
“To date, the commission
has chosen to err on the side of
JOHN BAZEMORE/ASSOCIATED PRESS
n-
BY JAMES V. GRIMALDI
AND PAUL OVERBERG
Sen. Ron Wyden called on the FCC to postpone its vote on ‘net
neutrality’ to probe fake comments posted online over the issue.
openness,” the spokesman said
in a statement. “We reserve the
right to revisit this determination should circumstances warrant.”
A Journal investigation published Tuesday found 8,000
people who said a comment
posted in their name wasn’t
something they filed with the
FCC. In a random sample of
2,757 people whose emails
were used to post 818,000
comments, 72% said they had
nothing to do with them, according to a survey the Journal
conducted with research firm
Mercury Analytics.
The FCC spokesman, Brian
Hart, said none of the fake
comments found by the Journal investigation were used to
base the decision by the commission to rescind the FCC’s
oversight of internet-service
providers.
The rule proposal on net
neutrality has drawn a record
23.67 million comments.
In the wake of the Journal
investigation, some lawmakers
say they were themselves the
subject of false FCC submissions.
An anti-net neutrality comment posted in Democrat Sen.
Patrick Leahy’s name and home
address in Vermont is a fake,
the senator’s spokesman told
the Journal on Wednesday.
Rep. Michael Capuano, a
Massachusetts
Democrat,
said Wednesday that the FCC
was ignoring “fake comments—including one allegedly
from my own wife that was
submitted on the side that she
doesn’t agree with. But the
FCC will have none of that.
They’re going to do what
they’re going to do with net
neutrality."
Meanwhile, a spokeswoman
for New York Attorney General
Eric Schneiderman referred to
the Journal investigation in a
letter to the FCC saying the
agency has continued to stymie
his criminal investigation into
stolen identities used to post
fake comments.
“Investigations by our office, The Wall Street Journal,
and others have found clear evidence that the public comment process was corrupted,”
spokeswoman Amy Spitalnick
said.
“Everyone—especially the
FCC—should want to get to the
bottom of this before making
public policy choices based on
a corrupted process that seemingly involved illegal activity.”
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THE WALL STREET JOURNAL.
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A6 | Thursday, December 14, 2017
THE WALL STREET JOURNAL.
* *
U.S. NEWS
Firms Look to Regroup to Cut Tax Rates
BY RICHARD RUBIN
AND RUTH SIMON
The owner of a Dallas law
firm is thinking about splitting his business in two. The
chief executive of an Illinois
home-health-care provider
was advised to slow franchise
expansion. A Maryland publisher might change from a
closely held corporation that
distributes all profits to
shareholders.
The common denominator
for all three: Looming changes
in the tax code have left them
uncertain about how to organize themselves.
Republican
lawmakers
reached a compromise on a tax
overhaul Wednesday, and plan
final votes in the House and
Senate next week and delivery
to President Donald Trump’s
desk before Christmas. The
new rules could take effect in
January, encouraging business
owners to move quickly to
take advantage of them.
The core of the plan is a
Big Business
vast reordering of U.S. business taxation, not only for big
corporations like Apple Inc.
and Wal-Mart Stores Inc. but
also for millions of partnerships, limited-liability companies and other so-called passthrough companies that pay
tax through individual rather
than corporate returns.
The tax bill would lower
corporate tax rates to 21%
from 35% and lower the top individual rates to 37% from
39.6%. It would create a new
system for pass-through firms
that would exist in a gray
area—part business and part
individual. The Senate and
House both want to lower
these entities’ taxes, too, but
have different approaches.
The details of the compromise reached Wednesday will
be released later this week and
some numbers could change.
The new pecking order of
business and individual taxation could lead to a new era of
business reorganization and
Pass-through firms, which include partnerships, proprietorships and
S-corporations, constitute a large share of U.S. businesses and
business income.
Number of types of business
returns in 2014
Distribution of net income
in 2014
Nonfarm sole
proprietorships
Nonfarm sole
proprietorships
10.9
S-corporation
Partnerships
C-corporation
24.6 million
4.4
S-corporation
14.5
3.6
C-corporation
59.4%*
Partnerships
15.2
1.6
*Include real-estate investment trusts and regulated investment companies
which are not typical C-corporations
THE WALL STREET JOURNAL.
Source: Joint Committee on Taxation
tax-code gamesmanship with
unknown consequences for
the economy and federal revenue collection.
Mazin Sbaiti, the Dallas
law-firm owner, is thinking
about breaking into two busi-
nesses: one that provides legal
services, the other certain
functions such as printing and
copying.
He doesn’t want to reorganize but might do so to best
position himself to pay lower
TAXES
u Top Individual income-tax
rate drops to 37% from 39.6%
u Owners of pass-through
businesses get 20% discount
on individual tax rate
u Corporate alternative
minimum tax repealed
u Individual alternative
minimum tax retained but
narrowed
President Donald Trump spoke with members of the Howard family of Tenino, Wash., on
Wednesday at the White House after delivering remarks on the Republican tax plan.
That is lower than the 23% deduction in the Senate bill, but
when combined with the lower
top tax rate on ordinary income, it equates to a nearly
identical 29.6% top rate on
that income for pass-throughs.
The bill also would include
some version of House language letting pass-through
firms qualify for a tax break
based on their capital investment, a GOP aide said.
The final agreement is expected to steer clear of some of
the more controversial changes
in the House plan, including
taxes on graduate-student tuition waivers, the repeal of deductions for student-loan inter-
est and medical expenses and
the end of tax-free private activity bonds used for projects
such as hospitals and affordable
housing.
It was unclear how Republicans made these changes and
stayed within the $1.5 trillion
tax-cut limit they set for themselves.
House and Senate negotiators have been working this
week to reconcile the tax-cut
bills that have passed each
chamber and had been narrowing their differences. Republicans are now working on
writing the legislative text of
the tax bill, getting official
revenue estimates and making
final decisions. Votes on the final proposal could start as
early as Monday as Republicans try to wrap up their work
before they leave Washington
for the year. The Senate is expected to vote first.
The core of the tax bill is
likely to remain the same as the
versions passed by the House
and Senate: a deep corporate
rate cut, a restructuring of the
international tax system, cuts
in individual income-tax rates,
and big benefits to high-income
business owners and heirs to
large estates. Middle-income
households will get tax cuts
that are set to expire, and some
households, particularly upper-
u State and local tax
deductions capped at $10,000
u Student-loan interest remains deductible
u Graduate-student tuition
waivers not taxable
middle-class residents of hightax states, would likely pay
more than they do now.
The tax plan would encourage modestly faster economic
growth but not enough to cover
its own costs, according to the
nonpartisan Joint Committee
on Taxation. The JCT estimated
that the House and Senate bills
would each add $1 trillion to
Familiar Forecasts
The Federal Open Market Committee’s December forecasts for GDP growth and the jobless rate through 2020 are slightly more optimistic.
n-
The Fed’s evolving economic forecasts, by meeting
Interest-rate
target
PERIODS FOR WHICH INDICATOR WAS FORECAST
2016
no
Continued from Page One
between 1.25% and 1.5%, the
fifth such increase in the past
two years. Officials penciled in
three quarter-point rate increases for next year, as they
had in September, and two such
increases each in 2019 and
2020.
The big question heading
into their two-day meeting was
how much Fed officials expected
to lift rates in coming years. The
prospect of new fiscal stimulus
in the form of tax cuts, combined with solid hiring and lofty
asset values, could argue for
picking up the pace to prevent
the economy from overheating.
But low inflation and modest
wage growth could support the
case for sticking with a gradual
approach.
Chicago
Fed
President
Charles Evans joined Minneapolis Fed President Neel Kashkari
on Wednesday in casting two
dissenting votes, against seven
in favor or raising rates. Both
have cited weak inflation as a
reason to hold off.
Fed officials projected the
economy would grow 2.5% next
year, up from the 2.1% they predicted in September. They also
expect the unemployment rate
will fall to 3.9% by the end of
next year, down from their earlier forecast of 4.1%.
Officials didn’t project more
interest-rate increases or higher
inflation because price pressures have been surprisingly
muted this year. They still project inflation to rise to their 2%
target by 2019, the same as they
expected in September.
“It could take a longer period
of a very strong labor market in
order to achieve the inflation
objective,” Ms. Yellen said
Wednesday.
Economists said the latest
projections and Ms. Yellen’s
comments Wednesday show of-
outlined in a paper last week
potential tax-avoidance steps
businesses could take under a
new law. It has been downloaded more than 20,000
times.
Any new rules are likely to
take effect Jan. 1 with little
formal guidance from the
Treasury Department and Internal Revenue Service on
how they would be applied.
Key differences exist between the House and Senate
plans, and the final design
choices will have big effects
on how individuals and businesses behave.
Shelly Sun, chief executive
of BrightStar Group Holdings
Inc., a home-health-care franchiser, has been advised to
put franchise expansion on
hold and look at opportunities outside the company’s
core health-care business.
That is because of provisions in the tax rewrite that
limit personal-service businesses from taking advantage
of lower pass-through rates.
budget deficits over the next
decade, even after accounting
for the benefits of faster economic growth likely to come
from lower taxes.
Business groups voiced cautious optimism about key provisions affecting corporate taxes,
praising the decision to cut the
corporate tax rate starting next
year as well as the elimination
of the corporate alternative
minimum tax. But they expressed reservations about
other provisions that could still
surface in the final bill.
“Unquestionably, these guys
have to be jumping for joy,”
said Andrew Schmidt, a North
Carolina State University accounting professor who specializes in taxes. “I can’t think of
any business-oriented group
that has not been pushing for
this for the past 15 years.”
The plan has been faring
poorly in public-opinion polls,
but Republicans are determined
to press ahead, seeing its enactment as a political imperative
heading into 2018 elections and
as their preferred way to spur
the economy.
House Minority Leader
Nancy Pelosi (D., Calif.) said the
plan is a loser for the GOP,
whether it succeeds or fails,
noting the pressure the GOP’s
wealthy donors have placed on
getting a tax cut.
“If they don’t pass the bill,
they lose with their paymasters,” she said. “If they do pass
the bill, they lose with the
American people.”
ly
.
u Corporate-tax rate drops to
21% from 35% in 2018
co Fo
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FED
Corporations,
Wealthy Individuals
Stand to Benefit
MICHAEL REYNOLDS/EPA/SHUTTERSTOCK
Continued from Page One
publicans included in the House
and Senate tax bills. It would
take effect in 2018. The Senate
bill had delayed that rate cut—
from today’s 35%—until 2019.
Mr. Trump, who had said he
wanted a 15% rate, then drew a
red line at 20% before expressing openness to going as high
as 22%, on Wednesday said he
“would be thrilled” with a 21%
corporate rate.
“We want to give you the
American people a giant tax cut
for Christmas. And when I say
giant, I mean giant,” Mr. Trump
said in a speech at the White
House on Wednesday. “Our current tax code is burdensome,
complex and profoundly unfair.”
The agreement is also expected to eliminate the corporate alternative-minimum tax,
the people said. Keeping that,
as the Senate bill did, would
have undercut the value of
many popular business-tax
breaks, including a researchand-development tax credit.
The bill would retain the individual alternative minimum tax
with exemptions for incomes up
to $500,000 for individuals and
$1 million for married couples,
much higher than current law.
Republicans are considering
a 20% income deduction for
so-called pass-through businesses, which pay taxes
through individual returns.
taxes. The House and Senate
plans sharply limit legal practices like his from benefiting
from a new low tax rate for
partnerships. As a workaround, Mr. Sbaiti would wall
off the parts of the business
that don’t directly provide legal services in an order to get
lower rates for those profits.
“We seem to be punished
under this new tax bill,” he
said of law firms.
Pass-through firms want
lower rates just like corporations, and they have political
clout.
But law firms show how
these businesses are a challenge for tax writers. Should
partners be treated like highincome individuals taxed near
40%, or business owners taxed
closer to 21%?
“There are going to be a
lot of people looking into
what they can do for themselves,” said Daniel Shaviro, a
New York University law professor.
He and 12 other lawyers
2017
4%
2018
2019
2020
In the long run
4%
Forecast
on Dec.
2017
FULL
RANGE
3
2
2
CENTRAL
TENDENCY
excludes the
three highest
and lowest
1
1
3
0
’13
’14
’15
’16
0
’14 ’15
’16
’17
’15
’16
’17
’16
’17
’17
’13
’14
’15
’16
’17
DATE OF MEETING AT WHICH EACH FORECAST WAS MADE
GDP
2016
2017
Adjusted for
inflation,
change from
Q4 to Q4 of
each year
2018
2019
2020
In the long run
3%
3%
2
2
1
’13
’14
Jobless
rate
’15
’16
1
’14 ’15
2016
’16
’17
’15
2017
Average for
Q4
’16
’17
’16
2018
’17
2019
’17
’13
2020
’14
’15
’16
’17
In the long run
5%
5%
4
4
3
’13
’14
’15
’16
3
’14 ’15
’16
’17
’15
’16
’17
’16
’17
’17
’13
’14
’15
’16
’17
Notes: GDP and unemployment are seasonally adjusted; rate-target forecasts prior to June 2015 are interpolated from dot-plot figures.
THE WALL STREET JOURNAL.
Source: Federal Reserve via Federal Reserve Bank of St. Louis
ficials believe growth won’t
generate as much inflation as
previously thought. “If inflation
does actually pick up, it implies
that they move more rapidly” to
raise rates, said Lewis Alexander, chief U.S. economist at Nomura Securities.
Fed officials slashed their
benchmark federal-funds rate to
near zero during the financial
crisis and held it there for seven
years before raising it by a
quarter percentage point in December 2015, the start of a
gradual series of small increases. In October, the Fed also
started shrinking its $4.5 trillion portfolio of bonds and
other assets, most of which
were purchased as part of extraordinary postcrisis measures
to support the economy.
Since officials last met in
early November, Congress has
moved rapidly on legislation
that would cut business and individual taxes by around $1.4
trillion over the next decade.
Before this week, many Fed officials refrained from building
into their forecasts much prospect of fiscal stimulus because
it wasn’t clear what Congress
would pass.
House and Senate Republicans are reconciling different
versions of tax bills that have
passed their respective cham-
bers with the goal of putting a
unified plan before President
Donald Trump to sign by Christmas. The White House has said
the plan can boost growth to
levels that make up for revenue
shortfalls.
An analysis from the nonpartisan Joint Committee on Taxation found the tax bill wouldn't
pay for itself with more economic growth and instead
would result in about $1 trillion
in additional budget deficits
over a decade.
Fed officials’ projections
show they don’t see the tax cut
raising the economy’s long-run
growth rate, which they left unchanged at 1.8%.
While officials have now
largely incorporated the effects
of tax changes into their growth
forecasts, Ms. Yellen said, “importantly, you really don’t at the
end of the day see very much
change in the federal-funds rate
path.”
Ms. Yellen added that she remained concerned higher budget deficits could leave fiscal
policy makers with less scope to
respond aggressively to an economic downturn in the future.
Budget deficits are projected to
grow as the baby boom ages,
even before the added effect of
tax cuts. “Taking what is already a significant problem and
making it worse, it is a concern
to me,” she said.
While Ms. Yellen will preside
over one more Fed meeting
early next year, Wednesday featured her last scheduled press
conference before her term ends
Feb. 3. While she is likely to
hand her successor an economy
in far better shape than when
she took over four years ago,
the Fed faces several balancing
acts.
On one hand, inflation has
run below its annual 2% target
most of this year, reaching just
1.6% in October by the central
bank’s preferred gauge. On the
other hand, with the economy
so strong and more stimulus on
the way, they don’t want to hold
rates too low for too long and
cause price pressures to surge
out of control or fuel asset bubbles.
Mr. Trump’s nominee to succeed Ms. Yellen as central bank
chief, Fed governor Jerome
Powell, has indicated he could
offer a lighter touch on financial
regulation but has shown few
signs of diverging from Ms. Yellen on monetary policy.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
Thursday, December 14, 2017 | A7
THE WALL STREET JOURNAL.
THE ALABAMA SENATE ELECTION
PARTY
Analysts said Doug Jones’s win shows Democrats are proving eager to vote, which could be a force in next year’s congressional races.
of rural and largely white
counties. But turnout in these
places was muted.
Democrats may view this as
a hopeful sign, suggesting rural voters who backed Mr.
Trump last year will stay home
when he isn’t on the ballot.
Write-ins mattered. The
vote tally suggests that enough
Republicans went to the polls
on Tuesday for Mr. Moore to
win. They just didn’t cast their
votes for Mr. Moore.
Instead, some wrote in a
candidate. In results yet to be
certified, 1.7% of the vote went
to write-ins.
That share was larger than
Mr. Jones’s margin of victory,
1.5 percentage points. It was
also far larger than the share
of write-in votes in the state’s
2016 Senate race.
Republicans see some good
news in these numbers. The
write-ins were “a signal that
Republicans were sending, that
they would have voted Republican if they had a better candidate to support,” Mr. Ayers
said.
For Democrats, however,
the numbers still offer evidence of an enthusiasm gap.
The GOP civil war goes
on. Tuesday night’s results
showed Mr. Moore struggling
How Turnout Affected Tuesday’s Election
A key part of the story was higher-than-expected turnout in black-majority counties, where the number
of voters casting ballots increased 27 percentage points relative to the August primary. Similarly, turnout
increase was strongest in areas where Donald Trump performed worse than the GOP’s average over the
previous four presidential elections, and weakest where he thrived in 2016.
In counties where...
Trump did worse than GOP average Trump did 0-10 points better
Trump did more than 10 pts. better
Jones win
Moore win
Turnout rate:
0
10
20
Primary
30
40
Tuesday
50%
0
10
20
30
40
50%
0
10
20
30
40
50%
10
20
30
40
50%
In counties where registered voters are...
More than 90% white
Other
n-
Majority black
no
Continued from Page One
Nominees, including Supreme Court justices, require
50 votes to be confirmed, with
Vice President Mike Pence
casting a tiebreaking vote.
Earlier this year, Mr. Pence
was called up to Capitol Hill
to break a tie on Education
Secretary Betsy DeVos. Mr.
Pence has broken five ties this
year, including two procedural
motions and measures rolling
back Obama-era regulations.
In the wake of the Alabama
defeat, Tony Fabrizio, a GOP
polling expert who worked
with the 2016 Trump campaign, called for a politicalstaff shake-up at the White
House.
“It is clear that @realDonaldTrump needs to get better
political advisers,” Mr. Fabrizio said on Twitter. “This disaster could have been
avoided.”
Mr. Trump—who held a
rally last week near the Alabama border in Pensacola,
Fla., to urge support for Mr.
Moore —tried to distance
himself on Wednesday from
the defeat.
He reiterated in a Twitter
post that he had initially
backed another candidate,
Sen. Luther Strange, the appointed senator whom Mr.
Moore beat in the GOP runoff
election. And he reminded his
Twitter audience that he had
predicted that Mr. Moore
would be a weak candidate.
“If last night’s election
proved anything, it proved
that we need to put up GREAT
Republican candidates to increase the razor thin margins
in both the House and Senate,” Mr. Trump said in a
Twitter message.
In the long Alabama campaign, Mr. Trump had the distinction of endorsing two different candidates, and they
both lost. His pick last month
for Virginia governor, GOP
candidate Ed Gillespie, also
lost, raising questions about
his sway over voters—even
those who backed him in
2016.
“When you look at the governor’s race in Virginia, the
primary in Alabama, the general in Alabama, people are
saying, ‘Wait a minute, how
long is this guy’s coattails?’
They’re not very long,” Rep.
Mike Simpson (R., Idaho) said
of Mr. Trump’s influence.
At the same time, the
Moore defeat has energized
Mr. Bannon and Republican
voters enraged by the GOP establishment, which they see
as personified by Senate Majority Leader Mitch McConnell
(R., Ky.), say associates of Mr.
Bannon. Mr. McConnell joined
other Republicans in trying to
force Mr. Moore out of the
0
10
20
among voters considered part
of the GOP’s establishment
wing. Shelby County, south of
Birmingham, offered one example. The county reliably
votes Republican. Incomes and
educational attainment there
are far above the state average, as is typical of voters who
favor the GOP’s establishment
candidates.
On Tuesday, Shelby County
gave Mr. Moore 56% of its
vote—a seven-point drop from
the 63% in his 2012 race for
the state Supreme Court—and
turnout fell.
As a result, Mr. Moore won
21,000 fewer votes in Shelby
30
40
50%
0
10
20
30
40
50%
0
Sources: Alabama Secretary of State (2017 results, turnout); David Leip’s Atlas of U.S. Presidential Elections (presidential results)
THE WALL STREET JOURNAL.
race when allegations of sexual misconduct by him
emerged.
“Voters are going to see a
Republican establishment who
did everything they could to
throw this race to a liberal
Democrat,” said Andy Surabian, a Bannon ally and adviser to the pro-Trump PAC
Steve Bannon told
friends he blamed
Mitch McConnell for
the Republican loss.
Great America Alliance. “The
whole thing was not about
Roy Moore. It was about nationalizing Mitch McConnell
as the face of the failed Republican establishment.”
Mr. Bannon, the Goldman
Sachs banker-turned-conservative activist, blamed Mr.
McConnell for the loss, telling
friends the Republican leader
gave his blessing to Alabama
GOP Sen. Richard Shelby to
appear on television two days
before the election to say he
wasn’t voting for Mr. Moore.
Mr. Shelby wrote in another,
unnamed Republican.
Some GOP lawmakers were
hesitant to see the election in
Alabama as a referendum on
their party or their values.
“Primarily, it means the
voters of Alabama did not
want a man who in his 30s
was trolling shopping centers
and trying to have dates with
14- and 16-year-old girls,” said
Sen. Ron Johnson (R., Wis.).
“It’s unfortunate that Alabamians did not have a choice that
allowed them to elect what
they really wanted, a Republican senator.”
Mr. Moore’s flaws as a candidate might have been distinctive enough that his failure won’t deter other
insurgents who are thinking of
challenging GOP incumbents
with Mr. Bannon’s support.
“The type of allegations
levied…are not a common
thing,’’ said Danny Tarkanian,
a GOP challenger to Sen. Dean
Heller of Nevada. “It has nothing to do with my race.”
State Sen. Chris McDaniel,
a Bannon ally in Mississippi,
said his consideration of a primary challenge against GOP
Sen. Roger Wicker was unaffected by the Alabama race,
which he called “anomalous.”
“I think conservatism is
alive and well, and the grass
roots are still expecting Washington to change,’’ Mr. McDaniel said in an interview.
“They are still demanding
Washington to be changed.”
With Mr. Trump’s political
capital possibly diminished,
some GOP senators also may
be emboldened to assert their
independence and break with
him as the midterms get
close.
“Most of us are tired of
apologizing for the tweets
that he sends out every day
and trying to defend him,”
said Mr. Simpson of Idaho.
—Natalie Andrews
contributed to this article.
than he did in 2012—almost
exactly the number of votes he
lost statewide.
For Democrats, those numbers look like evidence that
the GOP’s infighting is hurting
the party among wealthier, educated suburban voters. Those
voters are plentiful in many of
next year’s competitive House
races.
Republicans could argue
that these voters weren’t particularly supportive of Mr.
Moore to begin with, and that
allegations of sexual misconduct, which Mr. Moore denied,
further diminished their enthusiasm.
GOP Unlikely
To Sway Jones
BY JOSHUA JAMERSON
AND REBECCA BALLHAUS
Democrat Doug Jones, Alabama’s new senator, touted
during his campaign that he
could work better with Republicans in Washington than his
GOP opponent, Roy Moore,
“could work with anybody.”
But the GOP isn’t likely to
find much of an ally in the former federal prosecutor, based
on the policy positions he has
staked out. Mr. Jones, who defeated Mr. Moore on Tuesday
in a special election to fill the
seat once held by Attorney
General Jeff Sessions, supports abortion rights and the
Affordable Care Act and has
been critical of the GOP plan
for overhauling the tax code.
He could also clash with the
Trump administration and his
Senate predecessor, as he opposes Mr. Sessions’ move to
dismantle an Obama-era rule to
avoid charges carrying long,
mandatory-minimum sentences
for less serious, nonviolent drug
offenders. Mr. Sessions this
year revived a more aggressive
charging policy created under
President George W. Bush.
Mr. Jones’s victory marks
the first time Alabama has sent
a Democrat to the Senate since
1997, and his upset election
will bring the GOP majority in
the chamber down to 51. That
leaves Senate Majority Leader
Mitch McConnell (R., Ky.) with
an even thinner margin to pass
a legislative agenda that has
already been largely stalled in
the first year of President Donald Trump’s administration.
Speaking Wednesday at a
news conference, Mr. Jones
called for both parties to “take
heed” of his election. “This
election shows that people
across this country want to see
people work together,” he said.
Mr. Jones said his votes in
the Senate would reflect the
political ideology of Alabama.
“I think I’m a lot more centerof-the-road political figure,
public figure,” he said. “I’m
going to be the voice for the
people of Alabama to do what
I think is right for them.”
Mr. Jones was initially cautious about running as a Democrat in a deeply Republican
state and sought to keep his
campaign’s focus on issues like
jobs and health care, rather
than on topics, such as abortion, that energize his party’s
progressive activists. Most of
his campaign signage didn’t
identify him as a Democrat.
But he ultimately had a
number of prominent Democrats campaign on his behalf,
including former Vice President Joe Biden and former
President Barack Obama.
Mr. Jones’s stance on several
major issues closely aligns him
with the rest of his party. He
opposes repealing the ACA, a
top goal of congressional Republicans, because the law provides access to health care for
low-income Americans and he is
concerned a repeal could raise
premiums. He would prefer to
make changes to the 2010 law.
He has said that if given the
chance to vote on the GOP tax
legislation, he would likely oppose it out of concern that it
would give wealthy Americans
too large of a tax break. He
has also said withdrawing
from the North American Free
Trade Agreement, which Mr.
Trump has threatened to do if
he is unable to reshape the
deal, would be a mistake.
During his victory speech,
he pledged to bring “common
courtesy and decency” to
Washington after a race in
which his opponent was accused by multiple women of
sexual misconduct and assault
when they were teenagers and
Mr. Moore was in his 30s. Mr.
Moore denied the allegations.
JOHN BAZEMORE/ASSOCIATED PRESS
The results in Tuesday’s
Senate election in Alabama
leave an important question
for the two political parties:
Do they signal that Democrats
are positioned for big gains in
next year’s congressional elections, or are they unique to a
race that featured a flawed
GOP candidate?
Analysts in both parties
said that damage done to Republican candidate Roy Moore
by sexual-misconduct accusations eased the way for Democrat Doug Jones to pull off an
unexpected victory.
But another important
force, some said, was one
likely to carry beyond Alabama
and into next year’s House and
Senate races: Democrats are
proving more eager to vote
than are Republicans.
“Obviously, the primary responsibility lies with a deeply
flawed Republican candidate,’’
said Republican pollster Whit
Ayres.
But he said results in Alabama—and in Virginia’s race
ly
.
BY DANTE CHINNI
for governor, which Democrats
won—also showed that some
voters were turning against
the GOP under President Donald Trump’s leadership, “particularly college-educated, suburban women.”
Here are other takeaways
from Alabama and their potential meaning for next year’s
midterms:
African-American voters
were motivated. Voter turnout
was down on Tuesday, compared with the 2016 presidential election. That is normal for
a special election. But it was
down much less in 11 southern
Alabama counties with large
African-American populations,
where Mr. Jones captured 60%
or more of the vote.
An energized African-American voter base could help
Democrats in some Senate battlegrounds with large, urban
black populations, such as Missouri, Indiana and Ohio.
But high turnout among African-American voters may not
help the Democrats much in
their quest to win back House
districts. Of 63 Republican
House districts considered
competitive, only three have
populations that are 20% or
more African-American.
Rural white voters stayed
home. Mr. Moore ran up big
victory margins in a collection
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Both parties examine
Tuesday’s outcome for
trends that will shape
next year’s contests
BRIAN CAHN/ZUMA PRESS
Alabama
Offers Clues
To Midterms
Doug Jones and his wife, Louise, on Wednesday in Birmingham, Ala.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
A8 | Thursday, December 14, 2017
THE WALL STREET JOURNAL.
WORLD NEWS
As ISIS Fades, a New Focus on Iran Pentagon
Sees a
BY DION NISSENBAUM
SYRIAN CENTRAL MILITARY MEDIA/ASSOCIATED PRESS
WASHINGTON—As the U.S.
military campaign against Islamic State winds down in the
Middle East, the Trump administration is turning its focus to what it sees as a bigger
threat: Iran.
U.S. officials are wrestling
with where and how to repel
what they describe as a significant Iranian military expansion across the region, a development of increasing
concern in Washington, Tel
Aviv and Riyadh.
“Our leadership has set as
an objective not to allow Iran
and its proxies to be able to
establish a presence in Syria
that they can use to threaten
our allies or us in the region,”
a senior U.S. administration
official said. “There are different ways to implement that,
and we are still working
through them.”
President Donald Trump’s
national security adviser, Lt.
Gen. H.R. McMaster, is considering giving a policy speech
on Syria early next year that
would outline the new strategy, according to people familiar with his thinking.
One major issue the Trump
administration has to address
is whether to make confront-
Iran’s army chief of staff, left, and other officers surveying a front line near Aleppo, Syria.
But those troops could also
be placed at the forefront of a
new effort to prevent Iran
from cementing its military
presence in Syria or establishing a secure route across the
country that would allow Tehran to easily ferry advanced
weapons to allies on Israel’s
border, according to U.S. officials and others familiar with
the continuing discussions.
“The military presence in
Syria increasingly should be
the center of gravity for an
Iranian neutralization strategy,” said Mark Dubowitz,
CEO of the Foundation for Defense of Democracies, a Washington think tank with close
ties to the Trump administration. “There’s no political le-
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
ing Iran an explicit new goal
for the more than 2,000
American forces currently in
Syria.
Defense Secretary Jim Mattis has said troops will remain
in the country for the foreseeable future to ensure that Islamic State doesn’t regain a
foothold or its remnants don’t
morph into a new threat.
verage without American military power on the ground.”
Iran has castigated the U.S.
for its Mideast presence, saying Washington is backing terrorists fighting the Syrian regime. Iran didn’t respond to a
request for comment on the
U.S. shift.
While Mr. Trump sketched
out a broad plan in October
for combating Iran’s influence,
the U.S. military has been focused on eliminating Islamic
State strongholds in Syria and
Iraq. That project, U.S. officials concede, has allowed
Iran to increase its influence,
especially in Syria. Administration officials estimate that
Tehran and its allies now provide 80% of the fighters for
President Bashar al-Assad’s
depleted regime there. By
some estimates, there are
125,000 Iranian forces currently in Syria.
Turning the focus from Islamic State to Iran would
come with a litany of challenges, including concerns
about triggering a deadly
backlash from Iran targeting
American forces in the region.
The Trump administration
has already shown its willingness to directly confront Iran
in Syria. Over the summer, the
U.S. military shot down two
armed Iranian drones flying
near American forces operating in southern Syria. Though
tensions quickly cooled afterward, the incidents showed
how serious confrontations in
Syria could become.
Threat
To Israel
BY DION NISSENBAUM
National security adviser
Lt. Gen. H.R. McMaster has
made it clear in recent days
the U.S. is crafting ways to
contain what it sees as an Iranian threat to Israel in Syria.
“What we face is the prospect of Iran having a proxy
army on the borders of Israel,”
he said at a public forum earlier this month.
American and Israeli officials are troubled by intelligence suggesting that Iran is
establishing a military facility
in northwestern Syria to make
long-range missiles.
Israel has carried out more
than 100 airstrikes in Syria,
most aimed at what it says are
convoys ferrying weapons to
Hezbollah.
The Trump administration
is seeking ways to prevent the
Syrian war from transforming
into a new regional conflict
between Israel and Iran.
The U.S. and its allies are
trying to use the expansion of
de-escalation zones in Syria
to halt Iran’s expansion along
the borders with Israel and
Jordan.
But critics say the agreements have actually shored up
Iran’s gains and undercut the
goals.
ly
.
White House retools
Mideast strategy,
sees Iranian military
as next challenge
U.S., Japan Urge Saudis Not to Sell Oil Stake to China
The U.S. and Japan have
urged Saudi Arabia to pursue
an international listing for oil
giant Aramco, fearing the pos-
Flow Chart
Saudi Arabia sends most of its crude oil to Asia.
Exports, in millions of barrels a day:
1.3
Japan
1.0
China
0.9
South Korea
0.7
Aramco's Abqaiq oil facility in eastern Saudi Arabia
Note: Through Sept. 30
Source: Global Trade Tracker
THE WALL STREET JOURNAL.
Beijing and Riyadh, a longstanding American ally, by cementing China’s status as a big
and steady consumer of Saudi
Arabian oil, one of the people
familiar with the matter said.
China is the world’s top oil
importer and is looking to secure a steady supply of crude
as its economy continues to
race ahead. Aramco holds
around 16% of the world’s
proven crude reserves and is
one of the biggest oil exporters.
For Tokyo, any move that
could potentially give China
preferential access to Saudi
Arabian oil is alarming, given
energy and other fields” and
“safeguard stability in the international energy market,” the
ministry said in a statement
Domestic politics have upended Aramco’s plans. Planning for the IPO is on hold
amid Crown Prince Mohammed bin Salman’s effort to
consolidate power in the kingdom, people familiar with the
matter said.
Washington has relayed its
concerns in recent months,
since news that the kingdom
was considering a deal with
China surfaced in mid-October.
Since then, Japan’s Ministry of
n-
India
Japan’s dependence on that
crude for more than a third of
its supply, another person familiar with the matter said.
“China will have a little bit
bigger seat at the table in the
Persian Gulf,” if the Aramco deal
goes ahead, said Sarah Emerson, a principal at consultancy
ESAI Energy LLC in Boston.
China’s foreign ministry said
Aramco’s search for partners is
a normal commercial activity.
China and Saudi Arabia in
recent years “have quickly developed relations,” and China
wants to “deepen the countries’ practical cooperation in
no
sible sale of a stake to China
would give Beijing too much
sway in the Middle East, people
familiar with the matter said.
Saudi Arabian Oil Co., or
Aramco, was slated to become
the world’s largest-ever public
offering, with a domestic and
international listing next year.
More recently, Riyadh has instead considered selling a private placement to a Chinese
consortium of state-held entities, people familiar with the
matter said.
U.S. and Japanese concerns
come amid increased tensions
in the region, where Saudi
Arabia and its allies are facing
off against Iran and Riyadh is
dealing with domestic political
turbulence.
The U.S. is concerned that a
Chinese stake in Aramco would
create a close bond between
1.1
U.S.
SAUDI ARAMCO/REUTERS
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Economy, Trade and Industry
has held several meetings with
Saudi officials, people familiar
with the matter said.
Aramco planned to list
around 5% of the firm, a stake
that could be valued at as
much as $75 billion. Exchanges
in Hong Kong, London and
New York are vying for the international listing.
On Nov. 4, President Donald
Trump tweeted: “Would very
much appreciate Saudi Arabia
doing their IPO of Aramco
with the New York Stock Exchange. Important to the
United States!”
People involved in Aramco’s
future plans said they saw the
tweet as a comment by Mr.
Trump on the talks between
Saudi Arabia and China.
Aramco Chief Executive
Amin Nasser said in November
that the firm would make its
decision soon on where to list
beyond the domestic Tadawul
exchange.
Saudi Arabia’s energy ministry didn’t respond to requests to comment.
The Aramco saga is the latest sign of U.S. anxiety over
the prospect of a more proactive China in the Middle East.
The Trump administration is
considering relaxing rules that
prevent Middle East and African allies from buying America’s
most
sophisticated
drones after countries including Iraq, Egypt and Saudi Arabia began buying this hardware from China, creating a
strategic and commercial
headache for Washington.
“A U.S. listing would be a
significant symbol of an evolving and deepening U.S.-Saudi
energy relationship,” a State Department official said this week.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Thursday, December 14, 2017 | A9
NY
WORLD NEWS
Somalia: An Overlooked Extremist Hotbed
A Somali man reacts at the site of a car bombing in the center of Mogadishu on Oct. 14. A European Union official says the country is being ‘treated as a sideshow.’
Y
al-Shabaab has also launched
bloody raids in neighboring
Kenya and Uganda. The
group, which formally became part of al Qaeda in
2012, can field some 9,000
core fighters on Somalia’s
battlefields, according to U.S.
military estimates.
U
nlike some other major Islamist extremist
groups such as Nigeria’s Boko Haram, al-Shabaab
refused to reflag itself as a
“province” of Islamic State
when that movement was ascendant in 2014. A separate
Islamic State-linked group in
Somalia counts roughly
100-200 men and operates
mostly in the northern Puntland region, according to the
U.S. military.
Much of the fighting
against al-Shabaab is currently done by 22,000 African Union troops from
Uganda, Burundi, Kenya,
Ethiopia and Djibouti. That
African force, however, has
suffered horrendous casualties at the hands of the militant group and is beginning
to pull out.
To the embattled government of Somali President
Mohamed Abdullahi Mohamed, widely known as
“Farmajo,” the U.S. represents the best hope for stemming extremist advances.
“If we don’t have the support of the Americans, we
cannot stand on our own
feet,” said Somalia’s state
minister of defense, Mohamed Ali Haga. “The Somali
security sector is still disorganized.”
On paper, the new U.S.funded Somali National
Army counts some 27,000
men—more than enough to
tackle al-Shabaab. Only a
fraction of that number,
however, is combat ready
and actually shows up for
duty, Western and Somali officials say. With the exception of a small, U.S.-mentored elite unit, the Somali
co Fo
m rp
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er rs
ci on
al a
us l,
e
on
ou look at fighters
leaving the Levant as
ISIS collapses in Iraq
and Syria, and the question
is: Where do these fighters
end up?” said a U.S. military
official familiar with Somalia
operations. “Al-Shabaab
owns a territory in Somalia
that may be a place where
they go and that’s something
that we’re trying to work
with the federal government
of Somalia to prevent.”
With key global shipping
lanes nearby, a tradition of
piracy and proximity to Yemen—another al Qaeda
stronghold just across the
Gulf of Aden—Somalia isn’t
attracting nearly enough international attention, warn
senior Western officials involved with the country.
“Somalia continues to be
a global strategic threat. But,
with other international crises, it’s being treated as a
sideshow,” said Alexander
Rondos, the European
Union’s special representative for the Horn of Africa.
That is beginning to
change under President Donald Trump’s administration.
In recent months, the U.S.
military began focusing more
on Somalia, which has lived
through three decades of
war and has haunted American policy makers ever since
the 1993 “Black Hawk Down”
debacle in Mogadishu.
There are now more than
500 U.S. troops operating in
Somalia, according to the
Pentagon, many of them special-operations forces. The
U.S. has also dramatically accelerated the pace of airstrikes against al-Shabaab.
In one such recent drone attack on Nov. 21, the U.S. said
it killed more than 100 militants after targeting an alShabaab camp northwest of
Mogadishu.
Operating mostly in central and southern Somalia,
military only has rudimentary weapons and isn’t capable of mounting operations
on its own, they say.
A
l-Shabaab are better
trained and got whatever they need while
the SNA is neither armed
nor trained nor paid properly,” said Jawahir Abdi, a
lawmaker representing Somalia’s South West state. “At
the moment, the government
is not winning at all.”
It has been five months
since a government supply
convoy last managed to
reach the South West state’s
capital of Baidoa, said the
state president’s chief of
staff, Ali Ali. “Al-Shabaab
move freely from town to
town, from region to region,
while the government sits in
an open jail. Those with the
government can only fly in
and fly out. To go by road,
you need to have some kind
of relationship with al-Shabaab,” Mr. Ali said.
ly
.
and as vast as the eastern
seaboard of the U.S.
no
n-
MOGADISHU, Somalia—
Maimed in the war between
Somalia’s government and al
Qaeda’s affiliate al-Shabaab,
the patients of De Martino
Hospital prefer not to talk
about what happened to
them.
“Everybody’s afraid,” the
hospital’s director, Abdi
Ibrahim Jiya,
said as he
walked
through a
ward filled
with recent arrivals. “If you
complain and are for the
government, you’re afraid of
the Shabaab. And if you
complain and are for the
Shabaab, you’re afraid of the
government.”
Such is the balance of fear
in Somalia’s capital, a bustling city of three million
people where, despite years
of international military efforts to stamp out Islamic
extremists, security remains
elusive and government authority fleeting. In October,
Mogadishu was hit by Africa’s deadliest terrorist attack—a truck bombing that
killed more than 500 people.
Outside Mogadishu, things
are worse. Al-Shabaab controls roughly 30% of the
country’s territory, Somali
government officials estimate. Alongside Taliban-held
areas of Afghanistan, that is
the world’s largest swath of
real estate that remains under jihadist sway since the
recent demise of Islamic
State’s self-proclaimed caliphate in Iraq and Syria.
It is also one with a coastline that is easily accessible
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A10 | Thursday, December 14, 2017
FROM PAGE ONE
WORLD WATCH
CHINA
21st Century Fox
$60B†
Marvel Ent.
$4.2B
Playdom
$0.8B
Lucasfilm
$4.1B
BAMTech
(75% stake)*
Maker Studios
$1B
$1B
$1.6B
’16
’17
Undisclosed amount
2005
’06
’07
’08
’09
’10
’11
’12
’13
’14
’15
THE WALL STREET JOURNAL.
*Separate stake acquisitions †Estimated, including debt Source: Dealogic
Continued from Page One
the people said.
21st Century Fox’s shares
closed at $32.75 Wednesday.
Most of the assets Disney is
buying would be put to use in
Chief Executive Robert Iger’s
quest to transform his company
into a streaming-video giant
that can go head-to-head with
rivals such as Netflix Inc. He
wants Disney to have its own relationships with consumers and
a broad array of content to offer
them online.
Mr. Iger also wants to
strengthen Disney’s largest business, television, which has taken
a hit as consumers cut back on
traditional cable packages and
spend more time with digital
providers.
The deal would mark a significant turn for Rupert Murdoch’s media empire after decades of expansion. The
remaining Fox assets, which
would be spun off as part of the
transaction, would include the
Fox News cable channel, the Fox
broadcast network and the Fox
Sports 1 sports channel. Fox also
will retain real estate including
its studio lot in Los Angeles,
people familiar with the situation say.
Mr. Murdoch has contemplated eventually merging the
remaining Fox assets with News
Corp, parent of The Wall Street
Journal, people familiar with
the matter say. The Murdoch
family owns 39% voting stakes
in both companies. Such a
merger is unlikely in the near
term given complexities includ-
CEO Robert Iger also
wants to strengthen
Disney’s largest
business, television.
which media is dominated by a
few giants: Comcast-owned NBCUniversal, a combined DisneyFox, and—if it survives the legal
battle with the government—
AT&T.
Media companies like Disney
and Fox are increasingly concerned that the biggest competitive threats won’t come from rival media conglomerates, but
rather from technology companies. Netflix and Amazon.com
Inc. are building substantial
subscription businesses by
reaching consumers directly and
are investing huge sums in original programming. Meanwhile,
Facebook and Google are win-
ning an overwhelming share of
digital advertising dollars.
The growth of Netflix and
Amazon, in particular, has
changed the equation for Mr.
Iger. Since becoming CEO in
2005, he has made Disney the
most successful collection of
brands in Hollywood due in
large part to the $7.4 billion purchase of Pixar Animation Studios and subsequent deals for
Marvel Entertainment and Lucasfilm Ltd., the maker of “Star
Wars.”
The popular franchises Disney gained in those deals have
made it the envy of other entertainment companies and have
driven substantial growth in its
theme parks and consumerproducts divisions.
Disney’s television business
has faced struggles. It generated
two-thirds of the company’s operating income in fiscal 2012
but has fallen rapidly to less
than 47%. Cord-cutting and falling ratings for traditional TV
networks have battered that
business, pressuring Disney’s
stock price.
To address that challenge,
Mr. Iger in August announced
Disney is making direct-to-consumer streaming services its top
priority. The company is launching one called ESPN Plus, meant
to supplement its cable sports
giant’s TV offerings, in 2018.
The following year, Disney plans
to launch a family entertainment service that will include
most of its movies and television shows, many of which it
currently sells to Netflix in a
deal that will expire next year.
Disney also spent nearly $2.6
billion for majority control of
streaming technology BamTech,
which is powering its new digital services.
The Fox acquisition is an acknowledgment by Mr. Iger that
Disney will need more help to
seize control of the digital moment. With Fox, his company
will gain more power to compete against Netflix and other
digital giants and a larger, morediverse collection of content to
offer on streaming platforms.
Buying Fox also would further augment Disney’s collection
of franchises. It would gain “Avatar,” which is already represented in the Walt Disney World
theme park in Florida under a
licensing deal, and Marvel’s XMen superheroes, to which Fox
has had big-screen rights since
the 1990s.
Disney would get majority
control of Hulu as well, giving it
another streaming service to
complement the one it is
launching in 2019.
A purchase of Fox also would
help Disney strengthen its existing television business. Fox’s
Twentieth Century Fox Television is one of the industry’s
most prolific producers with
successful shows on every major
broadcast network. Its hits include NBC’s “This Is Us” and
ABC’s “Modern Family.”
Disney also will get Fox’s biggest television asset—the animated hit “The Simpsons.”
The addition of 22 regional
sports networks will make Disney an even more-potent force
in sports programming and potentially give it more leverage in
negotiating distribution deals
with cable and satellite operators.
—Liz Hoffman
contributed to this article.
China’s central bank on
Thursday raised a suite of key
short-term interest rates for the
third time this year, effectively
tightening its monetary policy
just hours after the Federal Reserve’s latest rate increase.
The People’s Bank of China
increased the interest rates it
charges on its seven-day and 28day loans to commercial lenders
by 0.05 percentage point each.
The Chinese central bank
uses such loans, known as reverse bond repurchase agreements, via its daily money market operation so as to adjust the
supply of cash in the financial
system.
The interest rate on the most
popular seven-day loan, which
has risen to 2.5% after the latest
increase, has in recent years
emerged as the country’s new
de facto policy rate.
—Shen Hong
WORLD TRADE ORGANIZATION
Meeting Ends With
Few Breakthroughs
Ministers from 164 countries
concluded negotiations at a biennial World Trade Organization
meeting without agreements on
how to modernize global trade
rules, underscoring concerns
about the global commercial arbiter’s ability to resolve trade
disputes.
Countries clashed over how
to regulate such areas as electronic commerce and illegal fish-
MYANMAR
Government Arrests
2 Reuters Journalists
The government said it arrested two Reuters journalists
for possessing “important secret
papers” obtained from two police officers who had worked in
Rakhine state, where violence
widely blamed on security forces
has forced more than 625,000
minority Rohingya Muslims to
flee into neighboring Bangladesh.
The Ministry of Information
said the journalists and officers
would be charged under the Official Secrets Act, which carries penalties of up to 14 years in prison.
Reuters said the journalists,
Wa Lone and Kyaw Soe Oo, had
been missing since late Tuesday.
“We are urgently seeking
more information about the circumstances of their arrest and
their current situation,” Reuters
quoted its global communications
chief, Abbe Serphos, as saying.
—Associated Press
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
DISNEY
ing how to manage the potential
tax bill, the people say.
21st Century Fox had other
suitors for its assets, including
cable giant Comcast Corp. One
reason it leaned toward Disney
was the perception that the deal
wouldn’t face as much antitrust
scrutiny, a person familiar with
the matter said.
The Justice Department has
sued to block AT&T Inc.’s attempt to purchase Time Warner
Inc., signaling that a deal in
which a major content distributor, such as Comcast, is buying a
big content company could be
heavily scrutinized.
The Disney-Fox deal raises
the prospect of a future in
Central Bank Raises
Short-Term Rates
MILITARY’S ROLL: Philippine soldiers in Manila destroy weapons
that were confiscated during a siege by militants in Marawi.
no
n-
WSJ TALK / E XPERIENCE / OFFE R / GE TAWAY
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In recent years, Disney has shifted from acquiring entertainment brands and content to buying distribution platforms and other technology to help
deliver programming directly to consumers. 21st Century Fox would be the company’s biggest deal yet since Robert Iger became CEO in 2005.
ing, as trade ministers questioned the WTO’s efficacy at a
time when the Trump administration is questioning the way
multilateral organizations approach conflict resolution.
“Clearly this organization is
not working well,” said Pascal
Kerneis, managing director at
the European Services Forum,
which represents service-industry firms in international
trade talks. “There are countries that came here and
clearly said in their speeches
that they don’t want to move
their positions at all.”
—Taos Turner
ly
.
Expanding the Kingdom
Walt Disney’s notable acquisitions
Pixar
$7.4B
Club Penguin
$0.7B
THE WALL STREET JOURNAL.
* ***
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Thursday, December 14, 2017 | A11
NY
WORLD NEWS
South Korean President Moon Jae-in and first lady Kim Jung-sook arrive in Beijing for a visit aimed at improving relations.
“It might encourage China
to actively help, for example
by putting direct pressure on
North Korea to accept the offer,” said Su Hao, an international-relations expert at Beijing
Foreign
Studies
University.
Asked Wednesday about
Mr. Tillerson’s comments, Mr.
Lu, the Chinese Foreign Ministry spokesman, said Beijing
welcomes efforts to ease tension on the Korean Peninsula.
South Korea said Mr. Tillerson’s comments emphasized
the need for North Korea to
stop its provocations and return to dialogue.
“Under the principle of no
tolerance for North Korea’s
nuclear weapons, Korea and
the U.S.’s position is that various forms of contacts are pos-
sible, if it helps in achieving
the goal of complete discard of
North Korean nuclear weapons
in a peaceful way,” said a
spokesman for the South Korean presidency.
The left-leaning South Korean administration has held
open the door for a resumption of talks with Pyongyang,
but those outreaches have
been ignored or rebuffed.
alition government, was
named in an indictment at the
Jakarta Corruption Court for
allegedly receiving $7.3 million
related to the procurement of
national identity cards. He recently stepped down as
speaker of Indonesia’s House
of Representatives after being
detained as a suspect.
Prosecutors said Mr. Novanto violated articles of Indonesia’s anticorruption law,
which sets forth a maximum
penalty of 20 years in jail and
a fine of 1 billion rupiah
($74,000), according to Irene
Putrie, a prosecutor in the
case.
Mr. Novanto has previously
maintained his innocence. The
court convenes next week to
hear Mr. Novanto’s response
to the indictment.
The indictment said Mr. Novanto illegally received millions of dollars through corporate accounts at Oversea-
Chinese Banking Corp. Ltd.
and DBS Bank in Singapore. It
also said he was given a Richard Mille watch valued at
about $135,000.
The indictment capped a
monthslong effort by Indonesia’s antigraft agency to
charge Mr. Novanto. He had
defied summons, cited health
ailments that he said should
disallow his arrest, and filed
pretrial motions against proceedings.
Setya Novanto, center, allegedly received $7.3 million illegally.
n-
JAKARTA, Indonesia—One
of Indonesia’s most influential
politicians
was
indicted
Wednesday for his alleged role
in what investigators say is a
$170 million corruption scandal.
Setya Novanto, head of the
country’s second-largest political party and a key member
of President Joko Widodo’s co-
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Antigraft Agency Indicts Indonesia Official
BY ANITA RACHMAN
AND BEN OTTO
There was no reaction to
Mr. Tillerson’s remarks from
North Korea on Wednesday via
its state media.
Mr. Moon’s itinerary in
China includes a Friday meeting with Premier Li Keqiang,
the country’s No. 2 leader.
—Josh Chin and
Kersten Zhang in Beijing
and Min Sun Lee in Seoul
contributed to this article.
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BEIJING—South
Korea,
China and the U.S. signaled a
new initiative to pursue dialogue to help reduce tensions
over North Korea’s nuclear
program, as the South Korean
leader arrived in Beijing for an
official visit aimed at repairing bilateral ties.
President Moon Jae-in’s
four-day trip began Wednesday, hours after Washington
indicated its willingness to
open talks with Pyongyang
without preconditions—a softened stance that could help
unify North Korea’s neighbors
in dealing with it.
China-South Korea ties had
soured in the past year as Beijing reacted angrily to Seoul’s
deployment of an American
missile-defense battery, in a
dispute that has hampered efforts to coordinate a regional
response against North Korea’s advances in nuclear and
ballistic-missile technology.
Both sides agreed in October to set aside the dispute,
paving the way for Mr. Moon’s
first visit to China since taking
office in May. His priorities in
a Thursday meeting with Chinese President Xi Jinping—
their third this year—were to
secure the restoration of economic links and coordinate
policy on North Korea.
“China and South Korea
share common interests and
similar positions on denuclearizing the Korean Peninsula
through dialogue and negotiation,” Chinese Foreign Ministry spokesman Lu Kang said
Tuesday at a regular briefing.
For Beijing, friendlier ties
with Seoul strengthen its hand
in nudging Washington toward
accepting Chinese proposals
for direct talks with Pyongyang, said Cheng Xiaohe, an
associate professor at Renmin
University in Beijing.
With U.S. Secretary of State
Rex Tillerson opening the door
to direct talks with North Korea, “a loosening of positions”
sets up the Xi-Moon summit
as an opportunity to “discuss
how to sustain this momentum
toward negotiations,” Mr.
Cheng said.
Mr. Tillerson’s Tuesday
comments included assurances
that U.S. troops would stay
away from the Chinese border
in the event of regime collapse
in North Korea—remarks that
Chinese analysts call an important concession to Beijing.
ly
.
BY CHUN HAN WONG
YONHAP NEWS/NEWSCOM/ZUMA PRESS
Moon, in China,
Advances Push
For Korea Talks
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A12 | Thursday, December 14, 2017
IN DEPTH
Estimated percentage change in
GDP per capita by 2015 since
each country joined the single
market*
Joined the single market in:
1993
2007
1995
2013
2004
EU average: 0.79%
no
Austria
1.68%
1.58
Belgium
Germany
1.55
Denmark
1.26
Malta
1.23
Finland
1.17
1.14
France
Sweden
1.13
Ireland
1.01
U.K.
1.00
0.92
Netherlands
Czech Rep.
0.81
Slovenia
0.79
Slovakia
0.69
0.58
Hungary
Spain
0.53
Poland
0.49
Italy
0.48
Portugal
0.41
0.24
Cyprus
Lithuania
0.17
Estonia
0.14
Romania
0.14
Latvia
0.10
Croatia
0.03
Bulgaria
0.02
Greece
–0.03
*Luxembourg excluded. Impact is the
difference between the actual level and the
level which, according to London Economics
model, would have occurred if a country were
not in the single market.
Source: London Economics via AmCham EU
THE WALL STREET JOURNAL.
INSULT
Continued from Page One
an archaic word to describe a
senile old man, which North
Korea recently applied to President Donald Trump.
This highly niche field of academic endeavor boasts only a
handful of devotees worldwide. And they don’t agree on
whether Pyongyang’s taunts
reveal anything about its intentions.
Mr. Richey spent three
years reading and analyzing
roughly 42,000 English-language articles published by
Pyongyang’s famously vitriolic
Korean Central News Agency
between 1997 and 2006.
Among the most memorable: North Korea described
President George W. Bush as a
“cowboy buffoon,” Japanese
officials as “epileptic mentally
deranged wretches” and Park
Geun-hye, South Korea’s first
female president, as a “confrontation maniac…venomously
swishing her skirt.”
Manufactured
goods
Cars and
industrial
machinery
French bureaucracy
EU trade* as a percentage of
GDP
Number of legal actions against single-market violations
20%
800
15
600
10
400
5
200
0
1995
0
2000
’05
’10
’15
2002
’05
Intra-EU trade as a percentage
of total EU trade
Intra-EU trade, by top exports
80%
€3.0 trillion
’10
’15
’17†
Other
75
2.5
70
2.0
Beverages
and tobacco
Fuels and raw
materials
65
1.5
Food and live
animals
60
1.0
55
0.5
50
0
2000
’05
’10
’15
2000
Chemicals
’05
’10
’15
consumers immediately after
communism ended has worn
thin. Local politicians now want
to protect homegrown businesses, even at the expense of
the single market.
In February, the European
Commission took legal action
against Hungary and Romania
for ordering retailers that operate in those countries to buy
more food and agriculture products domestically. In June, the
commission ordered Poland to
scrap a retail-sales tax that the
EU said discriminates against
All paperwork, including a
driver’s employment contract,
must be translated into French.
Austria and Germany have adopted similar rules. The European Commission has challenged the restrictions, but Mr.
Banaszek has seen little improvement. Arrowsped now focuses on Nordic countries instead.
“It was a big wow to join the
EU, and there were hopes it will
get better, but this is a big disappointment,” he says. Western
companies “use us to sell their
goods in Poland, but otherwise
they don’t want to give us their
market.”
In the plumbing industry, the
single market offered the potential for any faucet approved in
one EU country to be sold
throughout the region. Increasingly, though, manufacturers are
struggling with country-bycountry requirements.
“In the old days, we had a
common understanding of what
is needed, and we were able to
sell nearly all over the world,”
says Ole Sander, chief executive
of Denmark’s FM Mattsson
Mora Group AB. “But countries
have gotten more protective of
their own rules, and now you
can no longer sell if you don’t
comply with local standards.”
European Commission President Jean-Claude Juncker has
shown little interest in trying to
halt the rise of economic nationalism through harmonized
standards and specific rules. He
has repeatedly vowed to be “big
on big things” such as Brexit,
“and small on small things,”
such as faucet standards. Since
taking office in 2014, Mr.
Juncker’s team has made fewer
than 25 legislative proposals a
year, compared with more than
100 under previous presidents.
Mondelez is trying to persuade the European Commission to propose common nutrition labeling, since some
countries have begun developing their own requirements. The
company had opposed such labels but now thinks one common system would be better
than 28.
“Sometimes, it feels like we
are promoting the single market
more than they are,” says Mr.
Tramontin, Mondelez’s European public affairs director.
—Daniel Michaels contributed
to this article.
terns before it launches a military strike.”
Martin Weiser, a graduate
student in Berlin, isn’t convinced that KCNA’s vitriol is so
calculated. He has been building up a database of North Korean articles for years, and
suspects that Pyongyang’s propagandists are actually very
disorganized, and that some of
their turns of phrase are the
products of sloppiness.
Take Pyongyang’s favored
Korean-language insult for
North Korean defectors: “human garbage.” While North
Korea typically translates the
phrase as “human scum” in
English, Mr. Weiser says KCNA
occasionally renders the putdown as “bête noire.”
“It just means ‘black beast’
or someone you don’t like,"
Mr. Weiser says. “It’s just not
the same as ‘human scum.’ ”
Others who have seen North
Korea’s linguistic sausage-making firsthand tend to share Mr.
Weiser’s skepticism. Andrew
Holloway, a British social
worker who spent a year in the
late 1980s working in Pyong-
yang editing North Korea’s
English-language propaganda,
described North Korea’s content as “hopeless.”
“The level of propaganda is
too naive and the standard of
writing too low,” he wrote in a
memoir.
Mr. Richey’s research began
in 2010, when he wondered
whether there was anything to
Pyongyang’s consistent use of
derogatory language.
After years of studying the
verbal missiles, Mr. Richey has
detected certain patterns.
“You can get a sense of how
angry they are based on how
many adjectives and adverbs
they put before a term,” he
said.
Some of North Korea’s
barbs appear to hit their mark.
After North Korea called Mr.
Trump an “old lunatic,” the
president tweeted last month :
“Why would Kim Jong-un insult me by calling me ‘old,’
when I would NEVER call him
‘short and fat?’ ” Since then,
KCNA has used “old lunatic” in
at least nine articles to refer to
Mr. Trump.
barriers.
Francesco Tramontin, the
European public affairs director
at Mondelez International Inc.,
the maker of Oreo cookies and
Trident gum, says “the trend is
most worrying if this spirals
into a more and more fragmented approach.”
So far, Mondelez hasn’t suffered a painful financial hit because it is large enough to absorb the extra bureaucratic
costs and tinker with its businesses and supply chain.
The creation of the single
market in 1993 lifted restrictions and initiated the harmonization of rules and standards
for cars, chocolate bars and
other products.
Even though many Europeans groused about EU rules that
seemed arbitrary, commerce
and air travel mushroomed. Intra-EU trade climbed to about
20% of the region’s gross domestic product in 2008 from
14% in 1995, according to data
from Eurostat, the EU’s statistical agency.
THE WALL STREET JOURNAL.
ly
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*Trade measured by average of intra-EU imports and exports of member countries. †Through Dec. 13
Sources: Eurostat (trade); European Commission (legal actions)
No other country in modern
history has used such “persistent, consistent, belligerent”
creative language, said Mr.
Richey, a professor at Seoul’s
Hankuk University of Foreign
Studies who earned his doctorate in political philosophy and
international security.
“The rhetoric goes beyond
repeated boilerplate stuff.
They’re working at this,” he
said.
Among others who have
studied the subject: Timothy
Rich, a professor of political
science at Western Kentucky
University in Bowling Green,
Ky., has analyzed more than
60,000 pieces of North Korean
propaganda to “uncover patterns in such sources that the
naked eye misses.”
He compares KCNA articles
to e-mail scams that offer
quick riches. Both, he says, are
skillfully crafted by their authors to increase the chances
of getting the desired response
from their targets.
Frank Dowling, a “big data”
analyst in Christchurch, New
Zealand, spent years scraping
Trade swoon
The financial crisis that
erupted in 2008 caused a drop
in trade between EU countries,
with little rebound since beyond
precrisis levels. As Europe’s
swoon dragged on, many politicians strove to prop up their
economies with fixes that prioritized domestic markets over
the EU. Those forces have persisted even though the eurozone
is closing in on its fastest annual economic growth rate in a
decade.
Further economic integration
within the EU could add more
than a half percentage point to
GDP, creating 1.3 million jobs,
estimates AmCham EU. Given
the current mood, that may not
be likely. The potential impact is
hard to quantify, but the World
Bank estimates that Brexit could
decrease U.K. commerce with
the region by more than 12%.
The food-labeling requirements Mr. Macron co-wrote
were meant to help French milk
and meat producers, core constituencies of Ms. Le Pen’s farright National Front party. The
law, which took effect in Janu-
KASPER LØFTGAARD FOR THE WALL STREET JOURNAL
The EU single market has boosted
economies of its members, with
the biggest lift to older and richer
members of the bloc.
In many ways, though, the
single market remains a work in
progress, partly because national regulations vary from
country to country. Not all EU
rules are translated into national laws, some rules can be
interpreted differently and the
EU’s single-market rules are enforced less strictly than its competition rules.
That is one explanation for
the new proliferating trade barriers. Last year, the European
Commission, the EU’s executive
arm, launched more than three
times as many legal actions
against alleged violations of single-market rules compared with
2015.
While there have been fewer
cases this year, “protectionist
sentiment is on the rise almost
everywhere,” says Frits Bolkestein, a Dutch politician who
was the EU’s single-market
commissioner from 1999 to
2004. His last project while in
office was adopting EU rules
that allow cross-border takeovers. France objected, but the
rules went through anyway.
Mr. Macron sidestepped the
very same rules to block the
shipyard deal in July. In September, the French government
agreed to the sale of effective
control in the shipyard but can
undo the deal if Fincantieri fails
to fulfill commitments on jobs,
governance and intellectual
property.
The French president and
other political leaders say they
are responding to voter concerns that free trade is jeopardizing domestic industries and
jobs. Those concerns are increasingly exploited by populist
politicians in Europe proposing
even more drastic forms of economic nationalism. Mr. Macron’s rival for the French presidency,
Marine
Le
Pen,
advocated rolling back much of
the EU’s integration and said
she would bring back the franc
if elected.
Resurgent parochialism could
gain even more momentum
with the looming departure of
the U.K., long one of the EU’s
strongest single-market proponents.
Many multinational companies that thrived selling standardized products across dozens of countries are now
worried, partly because they are
now competing with voters,
unions and other groups that
complain their home countries
ceded too much autonomy to
Brussels.
The EU’s single market is
“one of the world’s largest and
most attractive markets,” says
Susan Danger, chairwoman of
AmCham EU, a trade group representing American business in
Europe. AmCham is lobbying
European institutions to be
more forceful against the rising
Economic nationalism reverses some of the growth, consumer choice and corporate freedom created by
the European Union.
Workers assemble faucets at the Damixa facility, Odense, Denmark.
ary, requires meat and dairy
products sold in France to identify the country of origin, rearing and processing. Failure to
comply can result in fines of as
much as €1,500 ($1,760).
European Commission experts from two departments reviewed the law and warned of a
domino effect that would damage the single market. Nevertheless, the EU’s executive
branch allowed the requirements to go through because
the changes are supposed to
last for just two years. A senior
EU official says fears of a victory by Ms. Le Pen also factored
into some commission decisions
at the time, including this one.
Since then, other EU countries
have adopted similar labeling
requirements.
Anca Paduraru, a European
Commission spokeswoman, says
it has requested reports about
the impact of the new rules, and
will “monitor the situation and
could intervene if necessary.”
She wouldn’t comment whether
Ms. Le Pen influenced the commission’s decision.
Belgian packaged-milk exports to France fell 24% in the
first half of 2017 from the same
period last year, the most recently available data. As of the
end of September, also the most
recent data, Swedish dairy exports to France were down 25%
from 2016.
“It sets us back 25 years, before the creation of the single
market,” says Renaat Debergh,
president of the Belgian Milk
Federation, a trade group.
The opening of poorer Eastern markets to Western competitors meant that new, local
firms often were no match for
multinational companies. As a
result, the welcome that many
Western companies got from
‘It was a big wow to
join the EU ... but
this is a big
disappointment.’
KIM WON-JIN/AGENCE FRANCE-PRESSE/GETTY IMAGES
Economic Benefit
Work in progress
large chains, mostly foreign. Poland defied the order.
Former Polish Prime Minister
Beata Szydlo, who stepped
down earlier in December, has
accused the EU of “interfering
in domestic matters.”
Renata Juszkiewicz, president of the Polish Chamber of
Trade and Distribution, says the
retail-sales tax and other moves,
are “worsening the investment
climate” and causing “a kind of
spillover effect of populism and
protectionism in the region.”
Ms. Szydlo and her successor, Mateusz Morawiecki, who
until December was the country’s finance minister, have accused Mr. Macron of double
standards in trying to restrict
the access of cheap workers on
the French market while insisting that Poland should comply
with EU rules. The consequences have been especially
bruising in the trucking industry.
Grzegorz Banaszek, logistics
manager at Polish transport
company Arrowsped, says it has
become almost impossible in
the past two years for small
trucking firms to navigate the
bureaucracy of making deliveries in France.
Trade Barriers Rise Again in Europe
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Continued from Page One
tries are members of the EU.
Italy outlawed the much-coveted words “Made in Italy” from
any food products that contain
imported ingredients. That
means Baci hazelnut-filled chocolates, first made in 1922 in the
Italian city of Perugia, can’t be
labeled as Italian because their
cocoa comes from Africa.
Across the rest of Europe, Baci
are still marketed as “the true
Italian chocolates.”
These new barriers are overturning a generation of moves
toward trade liberalization—and
driving countries further away
from a well-functioning common market. Trade hurdles increase the cost of existing and
potential new businesses, disrupt cross-border supply chains
and discourage multinational investments.
“Sometimes, the local measures taken for naive reasons
create lots of unintended consequences,” says Marco Settembri,
the chief executive of Nestlé SA
in Europe, the Middle East and
North Africa (Nestlé makes
Baci). He worries that political
leaders take the single market
for granted.
Europe’s single market is one
of the most significant postwar
economic achievements, and it
celebrates its 25th anniversary
in January. It began one year
before the North American Free
Trade Agreement, which President Donald Trump is attempting to renegotiate. Products,
services, labor and capital freely
move across Europe, which,
with more than 500 million consumers, would be the world’s
largest economy by output and
demand.
n-
EU
In practice, implementation
in each of these areas has varied widely, with goods—until recently—moving mostly freely
and services less so.
Many economists say standardization fostered by the EU
has lowered costs for producers
and consumers alike. Labor
unions and small businesses
counter that it bestows overwhelming advantages on corporate behemoths.
The EU rode out a string of
recent crises more resiliently
than even optimists had predicted a year ago. A debt crisis,
a wave of migrants, the U.K.’s
decision to quit the bloc and the
popularity of anti-EU politicians
have only dented the EU so far,
while stiffening the resolve of
many EU supporters.
People gather to read a newspaper in Pyongyang, North Korea.
North Korean media websites
to build up a searchable private online archive of Pyongyang’s propaganda.
Michael
Lammbrau,
a
scholar at Mercyhurst University in Erie, Pa., believes the
invective can be analyzed to
predict military moves by
Pyongyang. He says that he developed a computer program
utilizing machine learning to
predict a nuclear test 73.2% of
the time, based on North Korean threats. He has also pro-
duced a filter that he believes
can identify harmless North
Korean
rhetoric—which
doesn’t result in an actual military attack—with 96.7% accuracy.
“The North Korean regime
barks very loudly before it actually bites its intended target,” Mr. Lammbrau concluded
in a recent journal article.
“Like a pitcher who unknowingly flinches before he throws
a fastball, Pyongyang may unwittingly display certain pat-
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Thursday, December 14, 2017 | A12A
NY
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GREATER NEW YORK
Commuters board a train at the LIRR’s Jamaica station in Queens.
the project is $2.6 billion, up
from $1.5 billion two years ago.
Several board members
raised concerns about the rising cost of MTA capital projects, though only one didn’t
vote in favor of the contract.
Commissioner James Vitiello,
a representative of Dutchess
County, abstained from voting
on the deal even though he
said he supported the project.
Mr. Vitiello cited as a concern the long-stalled East Side
Access project to build an
LIRR station beneath Grand
Central Terminal.
That project, slated to open
in late 2020, is seven years behind schedule. Costs have
risen from $4.3 billion to $10.2
billion. Mr. Vitiello said there
are signs the budget may rise
again.
Several commissioners said
the MTA needs to do a better
job of securing additional revenues from businesses and
municipalities that benefit
from such large projects.
Andrew Saul, a representative from Westchester County,
said: “I feel these massive capital projects have put us in a
really giant hole.”
During the debate, commissioners raised fears about signs
of weakening revenues from local taxes and about federal tax
reform that could hurt the region’s economy and make it
more difficult for the MTA to
refinance its borrowing.
Even so, they approved a
roughly $16.5 billion budget
for 2018, an increase of 4.6%
from 2017.
The budget includes $428
million toward an emergency
plan announced by MTA Chairman Joe Lhota this summer to
improve subway performance.
The initiative calls for hiring
2,700 workers and increasing
maintenance and upgrades of
tracks, signals and other
equipment.
Funding for the plan, which
is projected to run through
2021, remains unclear.
Mr. Lhota, an appointee of
New York Gov. Andrew Cuomo,
said New York state will pay
half. He has demanded that
New York City fund the remainder, but Mayor Bill de
Blasio has so far refused.
Mr. Lhota said that the
emergency plan will be scaled
back if full funding isn’t secured.
New York City’s four appointees to the MTA board
were the only commissioners
who voted against the budget.
City Transportation Commissioner Polly Trottenberg said:
“We are voting on an operating
budget at a time when our fiscal situation, city, state, nationally is very much uncertain.”
Lawrence Schwartz, a board
appointee of Mr. Cuomo, acknowledged the fiscal uncertainty. Despite that, “the governor of our state has been
unwavering in his commitment to fund at least half of
the subway improvement program,” he said.
Newtown Marks a Grim Anniversary
co Fo
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Five years later, community still seeks privacy as it honors victims of the Sandy Hook school massacre
Since the massacre at the Sandy Hook Elementary School five years ago, the community has opened a new school, above, as part of
its healing. Below, Nicole Hockley and Mark Barden both say they will privately honor their children who were killed by the gunman.
n-
said her family will privately
honor the life of her son,
who loved books and playing
with his big brother, Jake.
“Every single day is a reminder of the fact that my
son is no longer with me,”
Ms. Hockley said. “The big
milestone markers like the
day he died, like his birthday—those are days that
hurt at a deeper and more
significant level.”
Newton’s religious community will be holding services Thursday. The Trinity
Episcopal Church is having
an interfaith gathering for
prayer in the evening, and
St. Rose of Lima Roman
Catholic Church is planning
an evening mass.
Anniversaries are “always
a challenge,” said Rev. Matthew Crebbin of the Newtown Congregational Church.
“I think it always feels like a
little bit of a darker valley
for me at least.”
Mark Barden, whose 7year-old son, Daniel, was
shot and killed at Sandy
Hook Elementary School,
also said he and his family
no
In the five years since 20
school children and six educators were killed at Sandy
Hook Elementary School,
many things have changed in
Newtown, Conn. A new
school has been built, and
the gunman’s house has been
razed.
But how the community
marks the grim occasion
hasn’t changed: privately,
quietly and with a request
for the media to stay away.
Schools will be open, services will be held at local
congregations and families
will hold private remembrances, but there will be no
public events.
“This is really a time for
the community to be together, and we’ve asked for
that respect for the past five
years,” said Lorrie Rodrigue,
Newtown’s interim superintendent of schools.
Families and officials at
the sites of mass tragedies
have to decide how to mark
the anniversaries, and approaches vary. In New York,
the Sept. 11, 2001, terrorist
attacks are marked by a public event where the names of
the nearly 3,000 killed are
read aloud. In Orlando, Fla.,
a day’s worth of events to
remember the 49 people
killed in the Pulse nightclub
attack in June 2016. Columbine High School cancels
classes on the anniversary of
the 1999 shooting in Colorado.
About 15 miles east of the
New York border, Newtown
is soliciting designs for a
permanent memorial but
otherwise has been steadfast
in considering the anniversary a private occasion.
Nicole Hockley, whose 6year-old son, Dylan, was
killed at Sandy Hook Elementary School, said she supports the town’s approach.
“No one represents 28,000
people,” Ms. Hockley said.
“So it is the correct option
for the town to honor it by
largely staying silent so that
people can then choose to
mark the occasion as they
wish to.”
On Thursday, Ms. Hockley
MARK LENNIHAN/ASSOCIATED PRESS; BOTTOM: JULIE BIDWELL FOR THE WALL STREET JOURNAL
BY JOSEPH DE AVILA
would spend time Thursday
privately honoring the life of
a son who went out of his
way to make friends and
help other children feel accepted.
“Every day is difficult,”
Mr. Barden said. “But first
and foremost I have to prioritize being a consistent loving father for my surviving
children, James and Natalie,
and my wife, Jackie.”
Ms. Hockley and Mr.
Barden are among the large
group of Newtown residents
who have become activists
for the prevention of gun violence. The group Ms. Hockley and Mr. Barden cofounded, Sandy Hook
Promise, advocates for stronger gun laws and has formed
partnerships with school districts across the U.S. to educate students about warning
Akayed Ullah in a sketch.
Bombing
Suspect
Hears
Charges
BY CORINNE RAMEY
The man accused of detonating a homemade pipe bomb
near the Port Authority Bus
Terminal this week faced a
judge for the first time
Wednesday from his Manhattan hospital bed.
Akayed Ullah, 27 years old,
appeared via video in a Manhattan courtroom, where U.S.
Magistrate Judge Katharine
Parker read his rights and the
federal terrorism charges
against him.
A federal prosecutor asked
that Mr. Ullah be held in jail as
he awaits trial. His attorney
didn’t object.
On Monday morning, Mr.
Ullah detonated a bomb in a
passageway connecting subway stations underneath the
Port Authority Bus Terminal
and Times Square, according
to a federal complaint filed by
prosecutors this week. Mr. Ullah and three other people
were injured.
Mr. Ullah told investigators
that he “did it for the Islamic
State,” according to the complaint. He built the bomb in
his Brooklyn apartment, using
materials including metal
screws, a nine-volt battery and
Christmas tree lights, the complaint says. He faces up to life
in prison if convicted.
During the hearing, Mr. Ullah, a Bangladeshi immigrant,
had two lawyers by his bedside in a Bellevue Hospital
room. He appeared to have an
IV tube attached to his hand
or arm, and a nearby pole held
what looked like a bag of fluid.
“Have you seen the complaint?” Judge Parker asked.
“Yes, I do,” said Mr. Ullah,
who had a white hospital blanket pulled up to his neck. “I
did, I did.”
Judge Parker read the
charges: providing material
support to a terrorist organization, use of weapons of mass
destruction, bombing a place of
public use, destruction of property by means of an explosive
and use of a destructive device.
As he listened, Mr. Ullah appeared to stare into the camera,
occasionally closing his eyes.
On Wednesday, Bangladeshi
investigators interviewed two
of Mr. Ullah’s friends in an effort to understand whether he
had any contacts with local
groups. The country’s deputy
counterterrorism
commissioner said all evidence indicated that Mr. Ullah had radicalized outside Bangladesh.
“We have been trying to understand his view about ideology. But we couldn’t find anything suspicious about his
activities when he was in Bangladesh,” Saiful Islam said,
commenting on Mr. Ullah’s trip
to the country in September.
—Jessica Donati
contributed to this article.
ly
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The Metropolitan Transportation Authority on Wednesday awarded a $1.8 billion contract to expand the Long
Island Rail Road, even as its
commissioners raised concerns
about runaway capital-project
costs and an increasingly
strained operating budget.
A consortium including
construction firms Dragados
USA and CCA Civil will build a
third track along a 10-mile
stretch of the LIRR’s heavily
used Main Line corridor between Floral Park in Queens
and Hicksville on Long Island.
The expansion would increase capacity on five LIRR
branches that carry about 40%
of the rail line’s 300,000 weekday passengers, the MTA says.
It also would improve service
and reduce disruption systemwide, it adds.
It would allow reverse commuting from New York City to
Long Island. Currently, trains
only travel in one direction
during peak hours.
The projected budget for
YANA PASKOVA FOR THE WALL STREET JOURNAL
BY PAUL BERGER
JANE ROSENBERG/REUTERS
LIRR Expansion Plan Advances
signs of those at risk of hurting themselves and others.
Newtown resident Po
Murray, chairwoman of Newtown Action Alliance, said
she also has found comfort
in advocating for stricter
firearms restrictions.
“That’s basically our coping mechanism to deal with
this horrendous tragedy that
occurred in our community,”
said Ms. Murray, who lives
near the former home of
Sandy Hook shooter Adam
Lanza. The town razed the
house in 2015. Now it is just
an empty lot in a leafy residential neighborhood.
The construction of a new
Sandy Hook school has
helped people feel a sense of
progress in the community
and was a recognition of all
the positive aspects that remain in Newtown, interim
superintendent Dr. Rodrigue
said. This time of year is especially tough for the teachers in the district, she said.
“It’s a quiet, reflective
time,” Dr. Rodrigue said.
“How can that ever be easy?
It will never be easy.”
OYSTER PERPETUAL
DAY-DATE 40
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are ® trademarks.
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A12B | Thursday, December 14, 2017
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THE WALL STREET JOURNAL.
GREATER NEW YORK
+TOM
A rendering of a section of the planned waterfront walkway along the East River in Greenpoint, Brooklyn.
By relying on private developers, the city will be acquiring
more than a mile of new promenade at little public cost, but the
pace of construction depends on
the roller coaster of the development market and the whims
of property owners.
Work was delayed by the
2008 financial crisis, and has
been slow and uneven since.
Now, new construction is moving forward on a number of
Greenpoint sites, but the idea of
a continuous walkway along the
waterfront is years away.
“Most people know it is coming in bits and pieces, at the end
of the day there will be an esplanade,” said Nicholas Moli-
nari, chief of planning and
neighborhood development at
the city’s parks department.
Development began accelerating a few years ago in Greenpoint, following the success of
high-rise waterfront ventures in
Williamsburg. But even in Williamsburg, the esplanade is intermittent, broken up by many
undeveloped privately owned
sites with no public access to
the river.
At the Greenpoint, formerly
the site of a hulking low-slung
warehouse, there is a new concrete bulkhead reaching out
over the water facing the Midtown Manhattan skyline. The
site is adjacent to a new ferry
terminal.
Excavations for plumbing under the park are under way, and
the entire section is due to open
in the spring. A stainless-steel
railing will run along a waterfront walkway paved with
boardwalk-like sections of asphalt and plastic composite
strips. In all, the park will total
29,500 square feet including a
4,000-square-foot playground
with shade provided by trees
and large colorful oval panels
overhead.
Under an agreement with the
city, the developers, Mack Real
Estate Group and Palin Enterprises, will turn over title to the
new section of park to the city
GREATER NEW YORK WATCH
LONG ISLAND
Cancer Scammers
Skip Sentencing
A couple who fraudulently
pocketed thousands of dollars in
donations for a 5-year-old boy
with cancer could be looking at
three years in prison after missing a Wednesday court sentencing at which they were expected
to merely get probation.
Brittney Schmidt, 31 years
old, and Vincent Fina, 30,
pleaded guilty in September in a
Long Island court to a felony
charge of scheme to defraud.
Authorities say the pair solicited
donations from businesses by
claiming the money would pay
for the child’s funeral.
Prosecutors say there is a boy
from Staten Island who has brain
cancer but the couple has no relation to him and “misappropriated” his story for their scam.
Attorneys for the couple
didn’t speak with reporters after
the sentencing hearing was
postponed.
Acting State Supreme Court
Justice Robert Bogle was visibly
irritated by the couple’s failure
to show up for their court hearing. The judge didn’t say
whether he will keep his initial
commitment of probation, but
could opt to sentence them to
11/3 to 3 years in prison.
— Associated Press
COUNTING DOWN: Workers in Times Square unloaded numerals Wednesday for the ‘2018’ sign that will light up to mark the new year. .
NEW JERSEY
Assemblywoman Is
Choice for Treasurer
Governor-elect Phil Murphy
said he would nominate Assemblywoman Elizabeth Muoio to be
New Jersey’s next treasurer.
Mr. Murphy, a Democrat, said
Wednesday the position “entails
being on the leading edge of
economic policies that will support our middle class.”
Ms. Muoio, an attorney, has
served in the General Assembly
since 2015, sitting on the chamber’s budget, judiciary and com-
merce and economic development
committees. She has worked
since 2008 as director of Mercer
County’s Office of Economic Development and Sustainability.
—Kate King
©2017 CHANEL®, Inc.
no
sponded. “You miss the point.
When you say it’s state government you do a disservice to
women, with all due respect,
even though you’re a woman.
It’s not government, it’s society.”
The Cuomo aide accused of
assault and harassment, Samuel
Hoyt, a senior vice president at
the Empire State Development
Corp., has resigned. He has said
he erred in having a relationship with a state employee but
denied assaulting her.
On Wednesday, Mr. Cuomo
said he didn’t regret hiring Mr.
Hoyt, though “[Mr. Hoyt]
made a mistake.”
The governor’s commentary
that asking about harassment
in the Cuomo administration
was a “disservice to women”
drew quick condemnation from
Republicans as tone deaf and
disrespectful. The National Republican Congressional Committee sent out an email criticizing his “sexist rhetoric.”
“Unbelievable,” the group
said, calling on a Democratic
congressional candidate, current state Assemblyman Anthony Brindisi of Utica, to
speak out against Mr. Cuomo.
Mr. Brindisi’s campaign
spokeswoman said the Republicans were “reaching for
straws to attack Anthony.”
In a conference call with reporters later Wednesday, Mr.
Cuomo sought to clarify his remarks, saying he plans to propose new laws to combat sexual harassment and didn’t
want the issue limited to just
state government. “What I was
intending to say the first time
is I believe we can pass laws
that apply to private entities
and corporations,” he said.
Mr. Cuomo later apologized
to Ms. DeWitt, his office said.
A privately built, public waterfront promenade along the
East River in the Greenpoint
section of Brooklyn is finally beginning to take shape, one sliver
at a time, after more than a decade of delay.
PROPERTY
At a new 40story waterfront
rental and condo
tower known as the Greenpoint,
a 275-foot-long walkway is under construction, with a playground and a grassy hill with
shade trees.
When completed in the
spring, it will be the first privately built section of the walkway to open in Greenpoint. But
both ends of the new section of
park will face out on the gates
of undeveloped warehouse
buildings, illustrating both the
promise and perils of public-private partnerships.
Developers are building sections of the promenade at their
own expense, a requirement of a
2005 rezoning of Greenpoint
and North Williamsburg that
permitted tall residential towers
in a rundown industrial district
of warehouses and piers.
DREW ANGERER/GETTY IMAGES
The governor’s
commentary drew
quick condemnation
from Republicans.
BY JOSH BARBANEL
before they obtain a certificate
of occupancy for their towers.
The development, between
India and Huron streets, will include a six-story building with
140 affordable rental units, 368
market-rate rentals units in two
five-story wings and the tower.
At the top of the tower, beginning on the 29th floor, are 95
condominiums. Amenities include parking, indoor and outdoor lounges and a basketball
court. On the tower’s second
floor there will be two restaurants, including one by celebrity
chef and restaurateur Marcus
Samuelsson, the chef of Red
Rooster in Harlem.
To cover the costs of maintaining the public park, the developers have promised to provide about $88,000 annually of
which $20,000 would be paid
for by condominium owners, according to the offering plan.
“The long-term viability of
New York City will be driven in
part by its waterfront,” said
Richard Mack, a founder of
Mack Real Estate.
Mr. Mack said that about half
of the 95 condos in the Greenpoint tower are in contract with
asking prices averaging about
$1,600 a square foot, a more affordable alternative to Manhattan or to waterfront Williamsburg condos. That works out to
more than $1.1 million for a onebedroom, with penthouses going for considerably more.
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Gov. Andrew Cuomo sought
to address domestic violence
on Wednesday but wound up
under fire for comments about
sexual harassment that Republicans deemed sexist.
At a news conference after
proposing a bill to strengthen
penalties for domestic-violence offenders, Mr. Cuomo, a
Democrat, was asked by public-radio reporter Karen DeWitt if he would make changes
in light of a lawsuit alleging a
former Cuomo aide sexually
assaulted a state employee.
“You have it going on in journalism, what are you going to
do differently?” Mr. Cuomo re-
Delays in Brooklyn
waterfront project
show perils of publicprivate partnerships
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THE WALL STREET JOURNAL.
LIFE&ARTS
Thursday, December 14, 2017 | A13
teen to go to the bathroom and
she left a note there. On the back
of the paper, the woman wrote “I
need help.”
The flight attendant alerted pilots and police arrested the man
for sex trafficking.
Alaska says it started training
flight attendants in 2015, shortly
before Ms. Fedrick’s February 2016
flight. The airline has also trained
customer-service agents.
Last week, a Customs and Border Protection agent interviewed a
17-year-old boy traveling alone
from New Zealand. He was on a
one-way ticket and said he was on
his way to visit a Michigan family
he met on social media. He carried
just $26, CBP says.
The agent followed standard procedure designed to protect minors
and looked up the names the boy
had. The man he had been communicating with was actually a registered child sex offender with two
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THE MIDDLE SEAT | By Scott McCartney
The New Push Against
Human Trafficking on Flights
n-
hope you’re wrong, but your action could save a life.”
Last year, the National Human
Trafficking Hotline took 26,727
substantive calls involving 7,621
reported cases of trafficking humans for work or sex, according to
the Polaris Project, the nonprofit
that operates the hotline for the
Health and Human Services Department.
This year’s numbers are running
10% to 20% higher, Polaris says.
Las Vegas knows that big
events, from boxing matches to
Super Bowl weekends, draw criminals along with other visitors. As
local authorities stepped up efforts
to thwart sex trafficking in particular, Rosemary Vassiliadis, director
of aviation at McCarran International Airport in Las Vegas, realized “these monsters are coming
through the airport.”
She started asking employees.
Those working the taxi line told
her they thought they saw it fairly
regularly but didn’t know what to
do. So the airport hired Airline
Ambassadors to train front-line
workers. Now everyone who works
at the airport goes through a summary of the training when they get
their airport-issued badge.
Ms. Vassiliadis says she flunked
the training on first go—she instinctively tried to intervene in a
situation that looked like someone
was traveling against her will.
That’s the wrong move—they’ll often run. Workers are trained to try
to keep people in sight without
spooking them and call the right
no
A FLIGHT ATTENDANT notices a
teenage girl uncomfortable with
the older man she’s traveling with
and leaves her a note in a bathroom. The teen writes back: “I
need help.” A teenage boy from
New Zealand on a one-way ticket
to visit a sex offender is intercepted by a careful Los Angeles
customs agent.
These are two stark examples of
how airlines, airports and the Department of Homeland Security
are stepping up efforts to thwart
human trafficking, which is transporting people for forced labor or
commercial sexual exploitation.
Travelers will see a lot more warnings, and be encouraged to learn
how to spot the crimes they may
be sitting next to on flights.
Training is expanding at airports, from skycaps to shop clerks,
and signs are going up, including
one in every bathroom stall at the
Las Vegas airport. Over the next
month or so, Delta Air Lines will
start placing 8-foot-tall signs at
gates in hub airports. Some give
victims a number to text or call
and others educate travelers about
signs of trafficking.
“It’s happening right under our
noses,” says Nancy Rivard, a former American Airlines flight attendant who is president and founder
of Airline Ambassadors International, a group that conducts training for travel-industry workers.
Stopping the illegal flow of people
“takes us being alert and having
the guts or the moral imperative
to make a call,” she says. “You
felony convictions, CBP says. The
teen was found inadmissible to the
U.S. under a rule giving CBP extra
responsibility for minors traveling
alone. He returned to New Zealand,
where he lives with a caregiver.
“The whole narrative was highly
suspicious,” a CBP spokesman
says. “We didn’t want to allow him
in and in two weeks see a rape
case or abuse.”
Airports say they try to find
ways to get information to victims
without flagging traffickers. They
post a hotline phone number,
sometimes with dashes in nontraditional places to make it easier to
remember without writing down:
888-3737-888. Polaris chief executive Bradley Myles says there’s an
initiative under way to put bars of
soap in hotels with the number
printed on it so they see it in private, just like the Las Vegas airport bathroom stalls.
The hotline staff is trained to
identify the type of situation: People held captive and forced to
work in agriculture or construction or massage parlors, for example. Polaris works with a network
of law enforcement agencies
across the country to refer cases
to someone locally trained in trafficking cases.
The travel attention has already
led to some ugly incidents of false
accusations: fathers traveling with
daughters who get questioned by
police after a flight crew or others
think something is amiss. Several
airlines have had to apologize to
detained passengers.
Airlines aren’t liable for trafficking as long as passengers meet
requirements on passports and visas. Advocates say good Samaritan
laws protect airline employees
who might end up making a false
accusation.
Delta says it trains employees
to ask a colleague to look over a
situation and see if there’s agreement before making a report. Others say following the criteria for
possible trafficking scenarios usually avoids mistaken reports.
“I want people to err on the
side of calling when your gut is
telling you something may be
wrong,” Mr. Myles says. “I think
the number of times people got it
right far outweighs the number of
times people got it wrong.”
ly
.
JON KRAUSE
‘It’s happening right
under our noses,’
one industry expert says
of human trafficking.
Calls for Help
The National Human Trafficking
Hotline says substantive calls and
reported cases of human trafficking
will increase 10% to 20% this year.
Calls recieved
Cases reported
25 thousand
20
15
10
5
0
2012
‘13
‘14
‘15
‘16
‘17*
*Through Sept. 30
Source: National Human Trafficking Hotline
THE WALL STREET JOURNAL.
authorities when they are able.
When eyeing a potential trafficking victim, Polaris says to look for
people unable to provide details of
their departure, destination or
flight information. Traffickers typically give their victims little information. Look for a traveler who has
someone speaking for him or her, a
traveler who isn’t carrying his or
her own identification, doesn’t have
any personal luggage, or isn’t appropriately dressed for travel or
their destination.
Other signs: nervousness, avoiding eye contact. And people buying
a large number of one-way tickets
with cash can be a red flag.
Congress included a requirement in FAA authorization last
year that airlines train flight attendants in human trafficking. A
short online training program created by the Homeland Security
and Transportation departments
meets the requirement. The government’s Blue Lightning Initiative
even has a version of the training
for the traveling public.
Several carriers are doing more.
Delta started training employees in
2013 and so far has educated
54,000 of 80,000 on human trafficking. Last year the airline broadened
its effort, using more extensive
training, supporting anti-trafficking
organizations and deciding to educate customers. It isn’t necessarily
great marketing—hitting customers
with disturbing warnings of criminals in their midst flies against traditional airline pitches of warm
places and smiling faces.
“I think it’s our social responsibility when we have the influence
we have,” says Allison Ausband,
Delta’s senior vice president of inflight services.
Alaska Airlines flight attendant
Shelia Fedrick noticed a young
woman with greasy hair on a Seattle-to-San Francisco flight who
looked uncomfortable with the
well-dressed older man with her.
She tried to engage them in conversation, but the man was defensive. Ms. Fedrick whispered to the
MUSIC
BY NEIL SHAH
THE ROCK & ROLL Hall of Fame
announced its latest inductees Wednesday, with
pop-music pioneers
edging out newer
performers—most
notably, Radiohead.
Sister Rosetta
Tharpe, Nina Simone, the Moody
Blues, Dire Straits,
the Cars and Bon
Jovi will join the
Cleveland institution’s
more than 300 artists at
the 33rd annual ceremony, scheduled for April 14.
The Class of 2018 embraces
pop’s distant past. Sister Rosetta
Tharpe, a gospel and pop singer
and guitarist, foreshadowed rock
’n’ roll. Nina Simone, an eclectic
and influential singer, pianist and
songwriter, mixed jazz, blues,
folk, gospel, pop and classical. The Moody Blues experimented with pop
in the 1960s and
helped pave the
way for progressive rock. Dire
Straits and the
Cars emerged in
the late 1970s, offering bluesy (Dire
Straits) and new-wave
(Cars) rock in a pop
landscape reshaped by punk
and disco. In the 1980s, Bon Jovi
catapulted commercialized hard
rock to the top of the charts.
This year’s more senior inductPlease see MUSIC page A15
FROM LEFT: EVERETT COLLECTION; GETTY IMAGES
THE ROCK HALL’S
CLASS OF 2018
Bon Jovi, above, won the fans’ ballot. Sister Rosetta Tharpe, left, was cited as ‘the first guitar heroine’ of rock ‘n’ roll.
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THE WALL STREET JOURNAL.
A14 | Thursday, December 14, 2017
LIFE & ARTS
BEST THEATER OF 2017 | By Terry Teachout
On Stage, Vitality
In Every Way—
But One
Apparel,” Lynn Nottage’s 2003
play about a turn-of-the-century
black seamstress who falls for the
wrong man.
Best performance in a play
Best performance in a musical
Nehassaiu deGannes was fiercely
impassioned in Shakespeare &
Company’s production of “Intimate
In Pittsfield, Mass., Aaron Tveit
gave the best sung, most moving
performance I’ve ever seen on
no
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THEATER IN AMERICA is as vital
as it’s ever been—with one grim
exception. I saw impressive new
plays, imaginative revivals and virtuosic acting in 2017, not just in
New York but throughout the
country. The musical, though, is in
dire creative straits: Not only did I
cover no first-rate premieres in
the year just past, but I reviewed
fewer noteworthy revivals than ever
before.
The best
new plays, all
of them
mounted off
Broadway or
out of town,
included Zoe Kazan’s “After the
Blast” at New York’s Lincoln Center Theater, Tracy Letts’s “Linda
Vista” at Chicago’s Steppenwolf
Theatre Company, John Patrick
Shanley’s “The Portuguese Kid” at
Manhattan Theatre Club and the
long-overdue New York premiere
of Brian Friel’s masterly “The Home Place”
at New York’s Irish
Repertory Theatre.
Broadway did a bit
better by revivals, presenting exemplary versions of Noël Coward’s
“Present Laughter” (directed by Moritz von
Stuelpnagel and starring
Kevin Kline) and John
Guare’s “Six Degrees of
Separation” (directed by
Trip Cullman). No less
noteworthy, though,
were the Florida Repertory Theatre’s profoundly comprehending
production of Mr.
Guare’s “The House of
Blue Leaves” (directed
by Chris Clavelli) and an
extremely rare revival of
Thornton Wilder’s “The
Skin of Our Teeth”
(smartly staged by Arin
Arbus for Brooklyn,
N.Y.’s Theatre for a New
Audience).
As always, I saw
plenty of great acting,
most notably from Allison Janney in “Six Degrees of Separation,”
Jin Ha in an otherwise
problematic Broadway
revival of “M. Butterfly,” Andy Karl in the
ill-fated Broadway
transfer of “Groundhog
Day,” and five terrific
regional-theater actors:
Jim DeVita in “A View
From the Bridge” at
Wisconsin’s American
Players Theatre, Frank
Ferrante in “A Funny
Thing Happened on the
Way to the Forum”
(which he also directed) at Philadelphia’s
Walnut Street Theatre,
Annette Miller in “4000
Miles” at Shakespeare
& Company in Lenox,
Mass., and Leo Finnie and Gladys
Ramirez in “Between Riverside and
Crazy” at Florida’s GableStage.
Now, the best of the best:
Best revival of a
musical
Another tie: Jenn
Thompson’s “Oklahoma!” at Connecticut’s Goodspeed Musicals and Maria
Friedman’s production
of Mr. Sondheim’s
“Merrily We Roll
Along” (in which Eden
Espinosa was astonishingly good) at Boston’s
Huntington Stage put a
bright new shine on
two important shows
that were both in need
of a fresh directorial
approach.
Best new play
Amy Herzog’s “Mary
Jane” opened at New
Haven’s Yale Repertory
Theatre, then moved to New York
Theater Workshop, in both cases
to well-deserved acclaim. Sensitively directed by Anne Kauffman
and starring Emily Donahoe in
New Haven and Carrie Coon off
Broadway, it’s the story of a single
mother with a severely disabled
child who finds within herself the
capacity for everyday heroism.
Best “new” musical
Clockwise from left: Tom McCamus and Patrick McManus in ‘The Madness of
George III’; James Ludwig and Aaron Tveit in ‘Company’; David T. Patterson
and Hannah Elless in ‘Come Back, Little Sheba’; Rachel Prather, Etai Benson
and Ari’el Stachel in ‘The Band’s Visit.’
stage as the ambivalent Bobby in
Julianne Boyd’s Barrington Stage
Company production of Stephen
Sondheim’s “Company.”
Best ensemble
The Transport Group’s off-Broadway revivals of William Inge’s
“Come Back, Little Sheba” and
“Picnic,” directed by Jack Cummings III and presented in rotating
repertory, featured a cast whose
members—14 actors, six of whom
appeared in both shows—made a
powerful case for Inge’s sad tales
of Midwestern loneliness.
Best classical production
Eric Tucker’s crowd-pleasing outdoor staging of “Pericles” at Wisconsin’s American Players Theatre
was a riotous explosion of pure joy.
Best revival of a modern play
Up in Niagara-on-the-Lake, Ontario, the Shaw Festival presented
small-scale productions of Brian
Friel’s “Dancing at Lughnasa” (directed by Krista Jackson) and Alan
Bennett’s “The Madness of
George III” (directed by Kevin
Bennett) so fine that I couldn’t
choose between them.
“The Band’s Visit,” which opened
off Broadway at the Atlantic Theater Company in 2016 and transferred to Broadway last month,
looks like a solid hit, proving that
it’s still possible to breathe life
into a venerable genre that is otherwise showing few signs of good
health. It’s full of sweet hopefulness and superlative craft.
Playwright of the year
Kate Hamill followed up her acclaimed 2014 stage version of
“Sense and Sensibility” with identically ingenious adaptations of
“Vanity Fair” (at New York’s late,
lamented Pearl Theatre Company)
and “Pride and Prejudice” (coproduced by the Hudson Valley
Shakespeare Festival and New
York’s Primary Stages). Between
them, all three shows are putting
Ms. Hamill on the map of American theater.
Mr. Teachout is the Journal’s
drama critic.
CLOCKWISE FROM TOP LEFT: LIZ LAUREN; SUB/URBAN PHOTOGRAPHY; DIANE SOBOLEWSKI; CAROL ROSEGG; MATT MURPHY; DAVID COOPER; DANIEL RADER; STRATTON MCCRADY
Juan Rivera Lebron in the title role of ‘Pericles, Prince of Tyre,’ above; Nehassaiu deGannes and Tommy Schrider in ‘Intimate Apparel,’ below.
ly
.
From top: Kate Hamill; Matthew
Faucher and Rhett Guter in
‘Oklahoma!’; Liza Colón-Zayas and
Carrie Coon in ‘Mary Jane.’
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THE WALL STREET JOURNAL.
Thursday, December 14, 2017 | A15
LIFE & ARTS
TELEVISION
Explosive ‘Gunpowder’ Draws
Parallels to Today’s Terror Plots
little for his life and becomes radicalized.
“He was a desperate man,” says Mr. Bennett, who has a Ph.D. in 17th-century history
from Kings College London and wrote
“Havoc in its Third Year,” a Booker Prize
longlisted novel set during the 1630s.
At one point, Catesby tells Father Henry
Garnet (Peter Mullan), a Catholic priest who
attempts to dissuade him from his plot, that
he is “willing to die for the one true faith” so
as to see it restored on the throne of England.
After the series began airing in the U.K.
on BBC One in October, it attracted attention for graphic scenes of torture and execution. The broadcasting watchdog Ofcom said
it received seven complaints. But for
Messrs. Harrington and Bennett, the scenes
were key to the story.
“I thought it was really important for the
no
n-
GUY FAWKES has long persisted as the
outsize boogeyman of the 1605 Gunpowder
Plot to blow up England’s Parliament, widely
considered the first premeditated, antistate
terrorist attack.
The Catholic conspirator joined the plot
late in the game, but it’s his name sung in the
nursery rhyme schoolchildren still memorize
and his effigy that burns each
Nov. 5 in bonfires around the
U.K. In recent years, he has
even become the face of political protest, thanks to a grinning
mask of his likeness worn in the
2005 film “V is for Vendetta.”
Now, a three-part BBC television drama, developed by
and starring Kit Harington of
“Game of Thrones” fame, looks
to set the record straight and
bring the real-life ringleader
out of Fawkes’ shadow.
“Gunpowder,” which premieres on HBO in the U.S. on
Dec. 18, tells the story of Robert
Catesby, a charismatic Catholic
nobleman whose faith fomented
the failed plot to upend the
Protestant monarchy by killing
King James I (Derek Riddell).
Fawkes (Tom Cullen, of “Downton Abbey”) is a relatively minor figure.
The series, which also stars Liv Tyler as
Catesby’s cousin Anne Vaux, draws striking
parallels between the Catholic plotters of
yore and modern-day Islamic terrorists.
“The concept of terrorism did not exist at
that time. It was ‘treason,’ ” says screenwriter Ronan Bennett. “But if something
similar was being planned today, then of
course you would call it terrorism.”
When Mr. Harington, a descendant of
Catesby, began developing the series for his
newly formed production company, Thriker
Films, he envisaged it as a “historical piece
about young, disenfranchised men who were
terrorists.”
“These were very fervent religious men
whose anger led them to violence,” says the
30-year-old English actor, who plays his an-
cestor. “We wanted to tell a story about
what happens when you persecute these
people for too long and they bite you.”
In the series, Catesby’s adherence to unpopular religious views has led to his financial ruin and imprisonment. He is fined for
not attending Anglican church services and
has fallen out of favor at court, where gentlemen such as himself traditionally furthered
their political fortunes. A widower who feels
alienated from his young son, Catesby cares
audience to see the kind of persecution
Catholics faced to understand the motives
of Catesby and his co-conspirators,” says
Mr. Bennett.
The show’s parallels with today are also
present in the way the government grapples with how to handle those conspiring
against it.
“If you bring down the heavy hand, as
James was urged by one of his counselors in
‘Gunpowder,’ then you ran the risk of further alienating Catholics and
further pushing them to violence,” Mr. Bennett says. “But if
you don’t do that and your
state is relatively weak, then
are you doing enough to defend
the state? I think those dilemmas are also the ones that exist
today.”
While most of the show is
historically accurate, the odd
liberty has been taken to give
“Gunpowder” a more contemporary feel. In one scene, a
wooden box full of iron nails is
smuggled, along with 36 barrels of gunpowder, into a warehouse beneath the House of
Lords, from where the Nov. 5
attack was to be launched.
“The nails were an addition,” Mr. Bennett says. “As far
as I’m aware, they weren’t used
by bomb makers at the time.”
The scale of the plot was unheard of at
the time, and the series shows that the
plotters, drawing on a support network in
Spain and Flanders, which is now the
Dutch-speaking northern part of Belgium,
had the capacity to form a small army.
“Had the plot been successful, it would
have wiped out an entire political class in
one country,” says Mr. Bennett. “It was certainly the most ambitious example of antistate violence there had been.”
Looking back, Mr. Harington has mixed
feelings about playing his ancestor. “He was
a very charismatic man,” the actor says.
“But playing him, I went through a period of
really disliking him. I just felt very sad for
him and very sorry for the predicament he
found himself in.”
Nina Simone, below, and The Cars, including
singer Ric Ocasek, above, were inducted into
the 2018 Rock & Roll Hall of Fame.
GETTY IMAGES (2)
BY TOBIAS GREY
Continued from page A13
ees beat out alternative-rock experimentalists Radiohead and rap-rock group
Rage Against the Machine, which gained
fame in the 1990s and were eligible for
the first time this year. (According to the
Rock Hall’s rules, artists are eligible for
nomination 25 years after their first
commercial recording—so, this year,
1992). In recent years, by contrast, many
acts—Guns N’ Roses (2012), Public Enemy (2013), Nirvana (2014), Green Day
(2015), Tupac Shakur (2017) and Pearl
Jam (2017)—have entered the Rock Hall’s
pantheon directly after becoming eligible.
Four of this year’s inductees were
nominated for the first time: Sister Rosetta Tharpe, Nina Simone, the Moody
Blues and Dire Straits.
An international voting body of more
than 1,000 music executives, artists and
past winners weighed in on this year’s 19
nominees, based on these artists’ influence, innovation and other factors.
The Rock Hall also tallies a “fans’ ballot”—five artists picked through online
voting by the public—that affects overall
voting (this year, Bon Jovi led). Four of
this year’s five “fans’ ballot” winners
were inducted (Bon Jovi, the Moody
Blues, Dire Straits, The Cars). The only
act that didn’t make it was early-era
heavy-metal band Judas Priest.
Three nominees known for 1980s music, art-pop singer Kate Bush, new-wave
duo Eurythmics (Annie Lennox and Dave
Stewart) and moody synth-pop group Depeche Mode, didn’t make the cut. Several
acts that have been nominated numerous
times before also fell short, including Boston rockers the J. Geils Band (five nominations, including this year); New Orleans
funk legends the Meters (four); rapper LL
Cool J (four); and proto-punk band MC5
(three). Other snubs: the Zombies, Link
Wray and Rufus featuring Chaka Khan.
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The drama revisits—and rethinks—the failed 17th-century plan to blow up England’s Parliament
MUSIC
ly
.
HBO (2)
Kit Harington, left and
Liv Tyler, below, star in
‘Gunpowder.’
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A16 | Thursday, December 14, 2017
SPORTS
OLYMPICS
One Ski Jump. $1. Three Olympians?
JOSE JORDAN/AFP/GETTY IMAGES
How the Chicago suburbs became a hotbed of American ski jumping
BY BEN COHEN
BY JOSHUA ROBINSON
Top, the jump at the Norge
Ski Club. Above, U.S. ski
jumper Kevin Bickner.
T-B: BEN COHEN/THE WALL STREET JOURNAL; HENDRIK SCHMIDT/EUROPEAN PRESSPHOTO AGENCY
ski jump since 1981, and it had
steel guts dating back to the
1940s. It looked big—like a roller
coaster that only went in one direction—but it wasn’t big enough.
Norge’s most extreme jump was a
K-64, meaning the landing area of
the hill began to flatten at 64
meters, but the Olympic jumps are
K-90 and K-120. Smith knew they
needed an upgrade.
That’s when they heard about a
used ski jump for sale in the Iron
Range of Minnesota four hours
north of Minneapolis, two hours
north of Duluth and barely south
of the Canadian border. Ely is
smack in the middle of nowhere.
It was a big day for the small
town when it unveiled its ski jump
in 1982. But the timing was terrible. A downturn in the local mining
economy soon drove people away
from Ely, and there wasn’t enough
interest from the shrinking population to maintain the infrastructure
for this niche sport. Ely’s ski jump
had been idle for several years by
2003. “The only thing it would’ve
n-
FOUR-TIME Tour de France champion Chris Froome was placed under
investigation by cycling authorities
on Wednesday morning after a doping control showed abnormally high
levels of an asthma drug at the
Vuelta a Espana in September.
Cycling’s world governing body
confirmed the results on Wednesday
morning, putting new pressure on
Froome’s British-based Team Sky,
the dominant force in the sport, to
explain its use of pharmaceuticals.
“It is well known that I have
asthma and I know exactly what
the rules are,” Froome said. “I use
an inhaler to manage my symptoms (always within the permissible limits) and I know for sure
that I will be tested every day I
wear the race leader’s jersey.”
Froome went on to win the
Vuelta, one of cycling’s three major
stage races, and was training this
winter for his most ambition season yet. He had been planning to
tackle the Giro d’Italia next spring
followed by the Tour de France
next summer in an effort to win an
unprecedented four consecutive
Grand Tours.
The urine sample was collected on
Sept. 7. Salbutamol use is permitted
by Union Cycliste Internationale
rules in concentrations up to 1000
nanograms per millileter, but
Froome’s sample showed twice the
allowable dose.
“My asthma got worse at the
Vuelta so I followed the team doctor’s advice to increase my Salbutamol dosage,” Froome said. “As
always, I took the greatest care to
ensure that I did not use more
than the permissible dose.”
The positive test was first reported in a joint investigation by
the Guardian and Le Monde, which
promted the UCI announcement.
A positive test for this particular
substance doesn’t come with an
automatic ban, according to the
UCI, but major suspensions have
been imposed for it in the past.
On Wednesday, Froome tweeted,
“I am confident that we will get to
the bottom of this.”
Weather
been good for is salvage,” said
Warren Nikkola, a retired plumbing
and heating contractor who
coached Ely’s youth ski jumpers.
Nikkola knew about the Norge
Ski Club. He’d actually been there.
And he liked the idea of the ski
jump going to a good home.
Ely officials agreed. They
quickly negotiated a deal for $1.
The Norge Ski Club had to dismantle the ski jump, haul it hundreds of miles, put the pieces back
together in a parking lot, rent lowgravity bulldozers to smooth the
hill’s grade and import plastic
matting from Finland for summer
training. The whole project cost
about $500,000. The construction
took months—work stopped once
when Native American bones were
discovered—and only days before
the annual event in January 2004
was it finally ready.
Smith personally christened the
ski jump. He promptly faceplanted. Everyone cheered.
Bickner was among the Norge
ski jumpers who never knew any-
The WSJ Daily Crossword | Edited by Mike Shenk
Shown are today’s noon positions of weather systems and precipitation. Temperature bands are highs for the day.
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V
30s
Calgary
C lgary
40s
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P
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20s
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Eugene
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50s
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Seattle
40s
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Billings
20s
alt Lake City
Salt
Ottawa
Toronto
T
Des
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Milwaukee
k
Detroit Buffalo
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Cleveland
Cleve d
Chicago
Ch g
Chic
Omaha
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Albany
A bany
b
20s
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t
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Hartford
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New
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60s
Philadelphia
Ph
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Washington
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D.C.
DC
80s
30s
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Indianapolis Pittsburgh
Sacramento
Springfield
p g
90s
Charleston
Ch l t
Charles
40s
an Francisco
San
20s Denver
Kansas
Richmond
h
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Topeka
City
Louisville
100+
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Colorado
Color d
C
40s
St.
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L
Lou
50s Raleigh
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Wichita
Ve
Vegas
Springs
p g
Charlotte
Ch l tt
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Los A
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Santaa Fe
F
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Memphis
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80s
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Alb q q
Phoenix
Oklahoma City
Warm
Rain
San Diego
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Little Rock
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Birmingham
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El Paso
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Dallas
Ft. Worth
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Cold
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70s
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Jacksonville
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Stationary Snow
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Houston
Orlando
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70s 80s
20s
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Anchorage
A
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Honolulu
l l
40s
70s
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Miami
Showers
60s
U.S. Forecasts
City
Omaha
Orlando
Philadelphia
Phoenix
Pittsburgh
Portland, Maine
Portland, Ore.
Sacramento
St. Louis
Salt Lake City
San Francisco
Santa Fe
Seattle
Sioux Falls
Wash., D.C.
Tomorrow
Hi Lo W
45 28 c
75 52 c
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32 26 sf
27 14 pc
42 34 r
65 42 pc
45 32 s
43 30 c
62 47 pc
45 14 s
45 36 r
40 23 c
39 31 c
International
City
Amsterdam
Athens
Baghdad
Bangkok
Beijing
Berlin
Brussels
Buenos Aires
Dubai
Dublin
Edinburgh
Hi
42
66
68
89
33
40
42
92
79
42
40
Today
Lo W
32 c
51 pc
43 s
75 pc
19 pc
32 c
34 sh
63 s
65 pc
34 sh
29 c
Tomorrow
Hi Lo W
41 35 pc
63 54 pc
68 46 s
90 74 c
38 22 pc
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41 33 sh
96 72 s
79 67 pc
42 31 pc
38 27 pc
City
Frankfurt
Geneva
Havana
Hong Kong
Istanbul
Jakarta
Jerusalem
Johannesburg
London
Madrid
Manila
Melbourne
Mexico City
Milan
Moscow
Mumbai
Paris
Rio de Janeiro
Riyadh
Rome
San Juan
Seoul
Shanghai
Singapore
Sydney
Taipei
Tokyo
Toronto
Vancouver
Warsaw
Zurich
2
Today
Hi Lo W
42 34 sh
46 40 sn
76 57 s
71 64 c
61 55 pc
85 75 t
60 49 pc
84 55 s
43 35 c
53 47 pc
86 73 pc
77 54 c
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44 32 sh
33 31 sn
84 69 pc
45 37 sh
86 72 s
78 45 s
59 51 r
87 75 pc
31 21 pc
49 44 c
87 75 c
95 72 pc
70 63 c
50 37 s
21 14 c
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41 36 sn
Tomorrow
Hi Lo W
40 32 c
44 34 sn
81 67 pc
72 61 pc
62 55 s
86 75 t
58 46 pc
82 57 pc
42 32 s
57 31 c
85 72 pc
79 55 s
74 47 pc
48 28 c
36 31 i
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89 74 s
72 42 s
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37 19 c
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79 71 pc
73 63 pc
48 39 c
27 20 sf
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42 30 sn
3
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14
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5 Movie house
44
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63
ALTERNATE ENDINGS | By Dan Fisher
5 Commencement
10 Responded to a
charge
14 Broad bean
15 Plays on the
field
16 Sleek, in car
lingo
17 Cleric in plaid
robes?
20 Move, in realty
lingo
21 Org.’s kin
22 Ideology
28 Handbag part
29 Maine
megalopolis?
32 Home to many
poissons
33 England’s
“painter of light”
35 A great deal
36 Greiner of
“Shark Tank”
37 Is out for a
while
39 Musical opening
42 Untroubled
44 Uninspired
existence
7 Ready for
testimony
9 Recipe amts.
58
64
Across
1 Soph
enlightener
39 Prepared to hit
40 Colorful Hallmark
subsidiary
8 They might be
loose or tight
53
57
36 Group of waiters
38 City on the
Illinois River
6 Negating link
38
43
51
31 Cereal choice
34 She-bear, in
Latin
3 Like bogeys
27
35
42
30 Family divisions
2 Cry from the
stands
31
37
27 Tamandua’s diet
Down
1 LCpl’s
subordinate
4 Diamond
features
34
36
40
13
22
25
33
12
16
21
24
32
11
19
28
39
8
18
20
23
7
15
17
51 Sales employee
on NBC’s
“Superstore”
10 Step for
Stepanova
11 Best Original
Song winner at
the 2014 Oscars
12 It may reduce
some bank
deposits
54 Check out
55 Euclid’s home
23 “31 Days of
Oscar” network
58 “O terra, addio”
singer
24 Cry from the
stands
59 Leader of the
insurgency?
25 Leno’s successor
and predecessor
66 Soapy film
23 Enrico Caruso,
perhaps?
68 Diplomatic goals
26 Swimmer
Ledecky
49 Bridge bid,
briefly
69 What are you
looking at?
67 Diplomatic asset
Solve this puzzle online and discuss it at WSJ.com/Puzzles.
44 “The Thrilla in
Manila,” e.g.
45 Game with red,
green, blue and
yellow suits
50 Buff buff
18 Sticky-fingered
sort
65 Heir to the family
fortune
43 Stiff or
unemotional
46 Rugged outcrop
13 Skylight
alternatives
19 “She’s a Lady”
songwriter
64 Hit the dirt?
41 Serving as a
symbol
48 Sea of Crises
setting
52 “I hear the
sailboarders are
dealing drugs,”
e.g.?
47 Mining
magnate’s
home?
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
32 21 c
31 23 sn
Atlanta
56 36 s
50 31 pc
Austin
65 41 pc 58 35 pc
Baltimore
42 20 pc 36 25 c
Boise
32 24 c
32 24 c
Boston
32 17 pc 30 24 pc
Burlington
17 8 c
25 17 pc
Charlotte
55 31 s
51 29 pc
Chicago
30 21 pc 33 26 c
Cleveland
27 13 sf 29 24 sf
Dallas
62 36 s
58 35 s
Denver
41 20 sf 58 31 pc
Detroit
22 12 sf 30 18 sf
Honolulu
80 70 s
79 68 sh
Houston
69 45 pc 57 40 c
Indianapolis
33 22 pc 37 26 c
Kansas City
42 25 c
46 32 s
Las Vegas
67 40 s
62 40 pc
Little Rock
51 29 s
53 29 s
Los Angeles
79 54 s
78 53 s
Miami
72 56 s
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Milwaukee
28 20 pc 31 21 c
Minneapolis
26 16 sf 29 19 c
Nashville
44 26 pc 45 29 pc
New Orleans
67 45 pc 53 43 r
New York City
36 21 sf 31 26 c
Oklahoma City
52 30 pc 52 32 s
Flurries
Ice
Today
Hi Lo W
40 23 c
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64 46 s
40 18 pc
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thing but the Ely ski jump. He still
remembers the first time he gathered the courage to hike all the
way up—because he still remembers walking right back down. “I
was pretty terrified,” he said.
That seemed like a long time
ago when he found himself in a
similar position earlier this year.
Except he was in Norway. And the
ski-flying hill was three times the
size of Norge’s.
Bickner took a deep breath,
whizzed downhill and flung himself into the air. He remained there
for the next eight seconds.
By the time he submitted to
gravity, Bickner had traveled farther than anyone in the history of
U.S. ski jumping: 244.5 meters. A
ski jump of 244.5 meters is as insane as it sounds. It’s more than 2
½ football fields. Bickner was in
the air for a full home run longer
than the last Major League Baseball season’s longest home run.
“We know he can be the best,”
said USA Nordic Sport executive
director Bill Demong. “That’s
something we’ve never been able
to say about an American ski
jumper before.”
A medal in Pyeongchang is still
unlikely. The U.S. hasn’t medaled
in ski jumping since the very first
Winter Olympics in 1924. The
more probable improbability is
three members of the four-man
team being Norge alumni: Michael
Glasder is another near-lock alongside Bickner, while A.J. Brown and
Casey Larson are prime contenders for the last spot.
Not long ago, as Smith thought
back on the deal that replaced the
original ski jump, he tried to recall
how the Norge Ski Club paid the
$1 it owed Ely. That’s when he realized: It didn’t.
“To be honest,” he said, “we
never gave them anything.”
ly
.
FROOME FAILS
DOPING TEST
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CYCLING
Fox River Grove, Ill.
THE NORGE Ski Club was founded
more than a century ago, and for
almost that entire time, its members have dreamed of competing
in the Olympics. None of them
ever did. The mere existence of a
ski jump in this suburban Chicago
town was enough of a miracle.
“We’re this little club in Illinois,”
said Norge coach Scott Smith. “We
don’t even have mountains.”
Smith himself was one of those
Olympic hopefuls, and he kept
wondering long after he retired
how the next generation of Norge’s
ski jumpers might break through.
About 15 years ago he had an idea:
What if they bought a bigger and
better ski jump?
As it turned out, there was one
for sale. It belonged to the rural
town of Ely, Minn., and it was a
hand-me-down that could be had
for a bargain. The Norge Ski Club
agreed to pay Ely’s city council
precisely $1. And then something
remarkable happened. The kids
from Norge who learned their
sport by launching themselves off
Ely’s ski jump have developed into
the best American men’s ski jumpers. There will likely be two and
maybe even three of them at the
Pyeongchang Games in February.
This little club in Illinois is
likely to have as many ski jumpers
on the U.S. men’s national team as
the rest of the U.S. combined.
“Nice to hear it was put to good
use,” Ely clerk-treasurer Harold
Langowski said.
Nothing about Fox River Grove
suggests it’s the epicenter of a
Winter Olympics sport. The “SKI
JUMP” signs that point to the club
at the end of Ski Hill Road seem
like a practical joke. This suburban
town having its own ski jump is so
unheard of that some people in
neighboring suburban towns have
never heard of it.
Kevin Bickner used to be one of
those people. He was a young boy
in nearby Wauconda, Ill., when he
first attended the Norge Ski Club’s
annual competition. Even then he
thought it was strange.
“Like, whoa, what’s this ski
jump doing here?” he said.
It was there because Norwegian
immigrants brought the sport their
country invented when they settled
here. But they would barely recognize today’s ski jumpers. Those
who learned at Norge, for example,
were driven up the secluded hill
and then climbed nearly 200 steps
until they reached the top of a
ramp so high they could see Chicago’s skyscrapers on a clear day.
They hurtled down at speeds approaching 50 miles per hour. And
then it was time to fly.
Norge had been using the same
53 Rambling tales
56 Padlock’s place
57 Pachamama
worshiper
60 Gomez’s hirsute
cousin
61 Squirt
62 Paris accord
63 Bldg. units
Previous Puzzle’s Solution
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For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Thursday, December 14, 2017 | A17
OPINION
stop him from attacking us is
his resignation.”
American politics is dividing now into a series of concentric circles, not unlike
Dante’s circles of Hell.
The innermost circle is occupied by political professionals who soak in the toxic political intrigues of Democrats
and Republicans in the Trump
era.
Outside this inner circle
stands the general public
whose members continuously
chant the two truisms of their
time: They have never seen a
more polarized political environment, and have never
struggled so hard to make
sense of what is going on.
We offer a path toward understanding, if not contentment.
Forget your political biases,
which impair comprehension
in direct proportion to their
intensity. Clarity comes only to
those willing to see all this for
what it is: a crude death struggle for power.
The fulcrum political event
is of course Donald Trump’s
victory in the 2016 presidential election. A Kirsten Gillibrand would look at this and
simply say: He won, we lost.
Now we have to win. How we
do that is irrelevant.
(By the way, regarding “do
anything”: The Almanac of
American Politics details Sen.
Gillibrand’s eye-rolling flipflops—famous in New York political circles—from upstate
House conservative to progressive Senate saint, described in an apparently forgotten New York Times
account.)
With Democrats themselves
admitting they have no coherent message that could win a
presidential election, the opposition strategy has been
built around Mr. Trump’s personality, his alleged collusion
with Russia to disable Hillary
Clinton, and now the return of
the same accusations of sexual
harassment that did not cause
him to lose the election.
The Democrats finally
have discovered how
to make the Trump
tweets their weapon.
To be clear about the strategy: If the U.S. was being
bombarded by killer asteroids,
you would be hearing nonstop
of Mr. Trump’s failure to protect us from the asteroids.
Whatever works. As Hyman
Roth told Michael Corleone:
“This is the business we’ve
chosen.”
In the past week, the Democrats may finally have hit upon
the Achilles’ heel that will fell
or weaken this president: his
tweets.
The tweets have worried
Republicans and Trump supporters since they started. Mr.
Trump rejects this criticism.
He said, with a tweet, that
they energize his base. But Roy
Moore just lost in Alabama.
At the level of political
chess, the Democrats of late
have been masterful against
their opponent. The biggest
nonpolitical story for months
has been sexual abuse, starting
with Harvey Weinstein. It was
only a matter of time before
the politicians would figure out
how to manipulate harassment
for their own purposes.
The Democrats forced both
John Conyers and Al Franken
to resign last week. They took
their harassers off the table,
which left Mr. Trump selfaligned with the one alleged
harasser on the board—Roy
Moore.
Then on Monday, the day
before the Alabama election,
came the following: Three
women repeated sexual harassment accusations they’d
made against Mr. Trump during the campaign; the congressional Democratic Women’s
Working Group called for an
investigation of the charges;
and Sen. Gillibrand called on
the president to resign.
On display here is how
Democrats have learned to exploit one reality, which is that
Mr. Trump’s political orbit of
interest radiates about two
feet beyond him. They have
discovered how to make his
tweets their weapon.
On election day, Mr.
Trump’s candidate, Roy Moore,
was on the bubble with voters,
especially among women. No
matter. Mr. Trump’s Tuesdaymorning tweet suddenly elevated a B-level New York senator, and the media instantly
recycled the Trump sexual-harassment details. Doug Jones
defeated Roy Moore by just
1.5%, and the Republicans’ Senate majority fell to 51. By day’s
end, Sen. Gillibrand was soliciting funds via email for her
2018 election. They figured out
how to make the Trump side
lose. It’s the president’s move
now. Checkmate awaits.
Write henninger@wsj.com.
Moore’s Law: Kooky Candidates Lose
I
If Republicans want
policy victories, they
should stop throwing
away Senate seats.
Mr. Moore’s campaign was
brought down in part by credible allegations that, while in
his 30s, he molested a 14year-old and dated other
teenage girls, whom he picked
up in a nearby mall or at local
diners. He did himself little
good by telling Sean Hannity
that he didn’t “generally”
date teenage girls, while admitting that he recalled two
of his accusers.
These sordid revelations
were only the latest controversy in a 25-year career
jammed with sensational incidents. Mr. Moore was twice
ejected from his position as
chief justice of Alabama’s Supreme Court. The first time
was for defying a federal court
order, and the second was for
ordering probate judges to ignore the U.S. Supreme Court’s
gay-marriage ruling.
no
n the interest of full disclosure: Since Nov. 30, my
face has appeared on
nearly a score of email fundraising appeals from Roy
Moore—and not, as you might
have guessed, in a positive
light. My mug was sandwiched
between Hillary Clinton and
Gloria Allred under a headline
reading “Defeat the Elite.” I’m
clearly no favorite of Mr.
Moore. But that’s fair, since
the feeling is mutual.
Mr. Moore is the most recent in a too-long line of
cranks and nuts who threw
away almost-certain Republican victories in Senate races.
It started in 2010 with Nevada’s Sharron Angle and Delaware’s Christine O’Donnell,
continued in 2012 with Missouri’s Todd Akin and Indiana’s Richard Mourdock, and
reached its low point Tuesday
night with the former judge
from Gadsden, Ala.
Weirdly, Mr. Moore’s defeat
was the most impressive,
given Alabama’s affinity for
the GOP. Since 2002, Republicans have won 42 out of 50
contested statewide races, by
an average of 16 percentage
points—and, in contests since
2010, by 20 percentage points.
That doesn’t include the 14
races in which Democrats
didn’t field a candidate. It
takes a very special Republican
to lose in Alabama.
Not surprisingly, Mr. Moore
doesn’t hold himself responsi-
ble for his defeat. He told supporters Tuesday that “part of
the problem with this campaign is that we’ve been
painted in an unfavorable and
unfaithful light. We’ve been
put in a hole.” Actually, it’s
Mr. Moore who for decades
painted himself those unflattering colors.
n-
By Karl Rove
Mr. Moore has a penchant
for outrageous statements. In
September he said America
was great in the years before
the Civil War because it was a
“time when families were
united—even though we had
slavery.” He suggested in February that the 9/11 attacks occurred because “we’ve distanced ourselves” from God.
And when he was asked in
August about Ronald Reagan’s description of the Soviet Union as “the focus of
evil in the modern world,” he
replied that “you could say
that very well about America”
today.
Then there was Mr. Moore’s
Foundation for Moral Law, a
classic money grab cloaked in
evangelical garb. Most of the
funds it raised through telemarketing appeals for support
of traditional values were spent
on fundraising costs. What remained largely went to salaries
for the principals, Mr. Moore
and his wife, and his advisers.
Then (surprise) it turned out
he had grossly misled the public about his compensation
from the enterprise.
Even Mr. Moore’s appearance was problematic. Maybe
he thought wearing a cowboy
hat with a leather vest and
riding his pony to his polling
place made him look like John
Wayne, but “Saturday Night
Live” was right: He looked
more like Woody from “Toy
Story.”
Democrats were quick to
call Mr. Moore’s defeat a ref-
erendum on President Trump.
That isn’t quite true. Mr.
Trump remains relatively popular in Alabama and his
agenda even more so. The
president can be faulted for
many things, but he brought
Mr. Moore close to victory.
The former judge was simply
too toxic. Nevertheless, Mr.
Trump is a huge victim of the
Alabama defeat, since losing a
Republican vote in the Senate
guarantees harder sledding
for virtually every administration initiative.
Democrats have concluded
that their victory Tuesday portends a rout for Republicans in
2018. That will surely happen if
the GOP nominates other Roy
Moores. A normal conservative
would have won Alabama easily; the alt-right populist Mr.
Moore could not. Therein lies
the most important lesson for
Republicans.
“If last night’s election
proved anything, it proved
that we need to put up GREAT
Republican candidates,” the
president tweeted Wednesday
morning. That’s absolutely correct. So don’t put Steve Bannon in charge of recruitment.
If his kind of kook can lose in
the Heart of Dixie, it won’t do
any better in any House or
Senate battleground.
Mr. Rove helped organize
the political-action committee
American Crossroads and is
the author of “The Triumph of
William McKinley” (Simon &
Schuster, 2015).
The Trump Regulatory Game Plan
By Neomi Rao
W
ithin 10 days of taking office, President
Trump issued Executive Order 13771, which directs agencies to reduce regulatory burdens by eliminating
two existing regulations for
each new one issued. This announcement was met with a
healthy dose of skepticism, as
the steady expansion of the
regulatory state traditionally
has been a bipartisan affair.
No longer.
This week, the Office of Information and Regulatory Affairs released a status report
on agencies’ progress on regulations. In only its first 10
months, the Trump administration has far exceeded its
promise to eliminate two existing regulations for each
new one—an unprecedented
advance against the regulatory state.
By comparison, in his final
eight months, President Obama
saddled the economy with as
To What End
Is All This?
On Purpose
By Michael Ruse
(Princeton, 294 pages, $27.95)
I
t’s an age-old question. Does life have a purpose? Or,
writ large: Does the universe reveal a grand design?
Most scientists today would say “not really,” but,
depending on their field of specialty, they might admit that
the question—which has to do with teleology, or ultimate
ends—is still useful.
While the topic can get swamped in jargon, Michael Ruse,
a professor of philosophy at Florida State University, is
anything but a dry writer. In “On Purpose,” he revels in the
arguments that philosophers, scientists and religious saints
have had over “the big picture” for the past 2,000 years.
In spite of the great success of science in modern times
and the growing skepticism of philosophers since Kant, Mr.
Ruse believes that the terms of the debate haven’t changed
much since the days of the ancient Greeks. As he shows,
the question of purpose starts from the observation of the
design-like nature of the world and moves from there to
the question whether a god is responsible for it. Three
classic positions, he says, have
defined the debate ever since.
First, there is the position of
Plato, who argued that the world
was the work of a Demiurge or
Intelligence, a mind that
designed the cosmos and ordered
it from the outside, as it were, as
a master craftsman would design
a machine. Aristotle, like Plato,
believed in design, but he argued
that it manifested itself according
to the internal principles of things
themselves, whether living or nonliving. Aristotle also believed in a
cosmic intelligence behind it all (he preferred
to call it the Prime Mover), but he denied that this being
concerned itself with direct intervention in the world.
Finally, the philosopher Epicurus (living roughly two
generations after Aristotle) claimed that there is no
ultimate design but that there’s nothing wrong with talking
about the world as if there were. Epicurus took his cue
from Democritus, the father of atomism, and believed that
the universe was infinite in space and time and consisted of
nothing but particles, or atoms, “buzzing around in space
or the void,” as Mr. Ruse puts it. Every now and then these
particles join up to make some useful organisms. Given an
infinite amount of time, something like the world and
everything in it was bound to emerge.
Eventually, as Mr. Ruse demonstrates, the Scientific
Revolution gave atomism a new life and the respectability it
retains to this day. The success of Newton’s physics inspired
an entirely mechanistic view of the cosmos that, in later
combination with Einstein’s relativity and quantum
mechanics, undercut any need for Plato’s cosmic designer or
Aristotle’s model of internal causality. Then Darwin did for
biology what Newton had done for physics, explaining the
great variety of living things in terms of a mechanistic law:
that of natural selection. By the mid-19th century, it seemed,
the idea of purpose was pretty much done for, as far as
science was concerned. And certainly today the major
branches of science—physics, chemistry and biology—flourish
without the need to call upon any principles of design at all.
co Fo
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Americans
were forced
this Tuesday
morning
to
take time from
their holiday
preparation to
WONDER
scroll through
LAND
these
exBy Daniel
changes beHenninger
tween
the
president of
the United States, Sen. Kirsten
Gillibrand and other members
of the U.S. Senate, known in
more innocent times as the
World’s Greatest Deliberative
Body.
A Trump tweet: “Lightweight Senator Kirsten Gillibrand, a total flunky for
Chuck Schumer and someone
who would come to my office
‘begging’ for campaign contributions not so long ago
(and would do anything for
them), is now in the ring
fighting against Trump. Very
disloyal to Bill & CrookedUSED!”
Sen. Gillibrand, whose aides
made sure reporters would
note she was in a Bible study
meeting at the moment of the
tweet, replied: “It was a sexist
smear attempting to silence my
voice, and I will not be silenced
on this issue. Neither will the
women who stood up to the
president yesterday.”
Sen. Elizabeth Warren joined
the colloquy: “Are you really
trying to bully, intimidate and
slut-shame @SenGillibrand?”
And then Sen. Mazie Hirono: “The only way to stop
this president who has a narcissistic need for attention,
he’s a misogynist and an admitted sexual predator and a
liar, the only thing that will
BOOKSHELF | By John Farrell
ly
.
When Donald Met Kirsten
much as $15.2 billion in regulatory costs, while hiding from
the public a needlessly “secret” list of more than 600
regulations. Reversing this
trend sends a clear message to
Message to businesses
and families: It’s OK
to plan for the future.
families and businesses: It’s
OK to plan for the future without the looming threat of red
tape.
On Thursday OIRA will publish the administration’s first
Regulatory Plan and Agenda,
which covers all federal agencies for fiscal year 2018. The
plan calls for the administration to drive already substantial reductions in regulatory
costs even further. This is a
fundamental shift from the
policies of the past.
Some regulations legitimately address important
health, safety and welfare
priorities identified by Congress. The Trump administration respects the rule of
law and will not roll back effective, legally required regulations. But in the previous
administration, agencies frequently exceeded their legal
authority when imposing
costly rules. Some agencies
announced important policy
changes without following
the
formal
rule-making
process.
Agencies are now expected
to regulate only when explicitly authorized by law—and
to follow the proper procedures. The same standards
now apply to regulatory and
deregulatory actions. If the
government exercises its regulatory power, it should do so
with fair notice and due process, and only upon a conclusion that the regulation is
necessary and that the benefits of the regulation justify
its costs.
Regulatory reform not only
promotes individual liberty
and a flourishing economy,
it also supports constitutional democracy. Through
OIRA’s regulatory review
process, we ensure that
agencies stay within the legal authority given by Congress. When the law provides discretion, we work
with agencies to ensure that
regulatory policy reflects
presidential priorities. This
executive direction makes the
rule-making process democratic and accountable.
The Trump administration
remains confident in markets
and the American people’s
ability to make responsible
choices. Our agenda for the
coming year reflects that
spirit and commits to a regulatory policy that actually
works.
Ms. Rao is administrator
of the Office of Information
and Regulatory Affairs in the
Office of Management and
Budget.
The debate over purpose starts from the designlike nature of the world and moves from there to
the question whether a god is responsible for it.
Has purpose been utterly vanquished then? Not in Mr.
Ruse’s view. Teleology still haunts evolution. Even hardnosed materialists like Richard Dawkins and the late
Stephen Jay Gould acknowledge that it’s hard to ignore the
growth of complexity during the unfolding history of life—a
development that one wouldn’t expect from a purely random process. Some researchers, like the paleontologist
Simon Conway Morris, have examined incidents of
convergence, noting widely different and unrelated species
that evolved functionally similar (if not identical) traits for
survival, discovering the same evolutionary pathways
independently. Based on such observations, Mr. Conway
Morris has argued that some kind of intelligent species
such as ourselves was bound to evolve. In his view, the
evolution of Homo sapiens was not an accident.
So Plato and Aristotle have not disappeared entirely. To
be sure, Plato’s position is championed largely by
creationists these days. But Aristotle’s notion of living
systems with an internally goal-oriented nature has been
revamped in some current theories by scientists like Stuart
Kauffman and Terrence Deacon, who have stressed the role
that principles of self-organization play at the most
fundamental levels of biology.
And modern-day Platonists and Aristotelians have some
allies even among skeptics in philosophy departments. Mr.
Ruse discusses the work of Jerry Fodor and Thomas
Nagel—in particular their reservations about Darwinian
evolution and their claims that science cannot fully account
for the emergence of human consciousness. Mr. Ruse finds
particular merit in Mr. Nagel’s belief that some kind of
internal teleology must be at work to account for the rise
of consciousness in human beings, as well as his call for
acknowledging more to the universe and its order than
blind physical laws.
But what about religion? Mr. Ruse makes no secret of his
disdain for the ideas of early neo-platonist Christians like
St. Augustine, whose belief that God predestined some
humans for an eternity in hell he finds reprehensible. And
he acknowledges that in the great debates between Athens
(the Greek rationalists) and Jerusalem (the prophets of
Judaism and the saints of Christianity), the thinkers guided
by religious belief too often shrank from the conclusions of
reason.
But does it follow that religion serves no purpose? While
not a believer himself, Mr. Ruse harbors a great deal of
sympathy for those who find ultimate meaning in the
universe and their lives through worship. Taking his cue
from his own Quaker upbringing, he argues that three
things remain deeply satisfying in life, even if
philosophically one ends up on the side of Epicurus and his
denial of design: family; a life of service to others; and, not
surprisingly for a philosopher, the life of the mind. For
many people, there is indeed purpose in each of these, and
perhaps, Mr. Ruse suggests, that is enough.
Mr. Farrell is the author of “The Day Without Yesterday:
Lemaître, Einstein and the Birth of Modern Cosmology.”
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A18 | Thursday, December 14, 2017
OPINION
LETTERS TO THE EDITOR
The FBI’s Trump ‘Insurance’
It’s Not the 1930s—Time to Tax Credit Unions
T
Yellen’s Fed Farewell
demand and productive supply.
Yet the Fed’s predictions of economic growth
budged only a little. The median forecast of the
board and Fed presidents moved up a tick to
2.5% this year from 2.4% in September. And it
moved to 2.5% in 2018 from 2.1%. Beyond that
the Fed’s fearless forecasters have the economy
falling back to near 2% and even lower in the
“longer run.”
Presumably one of those forecasters is the
Fed Chair apparent Jerome Powell, now a regular board member. The challenge for Mr. Powell
and the Fed will come if their forecasts are
wrong and they are underestimating the
growth effects of tax reform, deregulation and
the rest of the Trump-Congress policy mix.
Then the Fed will confront some of the policy
dilemmas delineated by Phil Gramm and
Thomas Saving nearby.
Mr. Powell is taking the job when the Fed will
have to decide how fast to raise interest rates
and unwind the unprecedented buildup in its
balance sheet. If Journal contributors like Martin Feldstein and Stan Druckenmiller are right
that the Fed has artificially inflated asset
prices, then the unwinding could be bumpy.
In that sense Ms. Yellen may find that the
timing of her departure is fortuitous. We wish
her—and especially Mr. Powell—good luck.
no
n-
he Federal Open Market Committee on
Wednesday raised its target interest
rate for the third time this year to a
range of 1.25% to 1.5%, in what is likely to be
Janet Yellen’s last major meeting as Federal Reserve Chair. She is departing as monetary policy
starts to get interesting again.
The rate increase was widely anticipated,
and markets took it in stride. More notable is
that the FOMC’s statement and economic predictions seemed oblivious to the news across
town Wednesday that the House and Senate
have struck a final tax reform deal.
The tax bill is the most significant reform
since 1986 and will reduce the cost of capital
with 100% immediate business expensing and
a cut in the U.S. top corporate tax rate to 21%
from 35%. The Germans and Chinese are fretting that capital might flow to the U.S. Yet the
Fed gave no indication that it thinks this will
have much effect on the economy.
Reporters tried mightily to coax Ms. Yellen
to declare at her post-FOMC presser that the
tax cut is dangerous demand-side stimulus
amid full employment, including a comically
tendentious question from the CNN reporter. To
her credit Ms. Yellen said that fiscal policy is
for Congress and the Administration, and she
said the reform would increase both economic
A
At a time when Congress is asking
everyone from teachers to homeowners to give up tax breaks in the
name of lowering rates, why is the
trillion-dollar credit-union industry
still getting a free ride (“Credit
Unions Keep Their Tax Break,” Business & Finance, Dec. 5)?
Congress exempted credit unions
from paying federal income taxes
during the Depression. As a community bank CEO in Texas, I know that
the credit unions we compete with
every day look nothing like the credit
unions of the 1930s. Today there are
282 credit unions above $1 billion in
assets—just 4% of credit unions—
that enjoy 75% of the industry’s tax
benefit. These fast-growing and increasingly complex institutions are
larger than 88% of the banks in this
country, advertise that they are just
like banks, take any customer who
walks in the door (openly promoting
that fact), devote significant resources to complex commercial lending and aggressively market to attract the affluent. They are
increasingly buying up taxpaying
banks, adding to what the country already loses in tax revenue. They look
and operate just like banks, except
that they don’t pay federal income
taxes.
The tax code shouldn’t pick winners and losers, and businesses performing the same service should face
the same rules. It’s time for Congress
to end the uneven playing field and
require the nation’s billion-dollar
credit unions to pay their fair share.
KENNETH L. BURGESS JR.
Midland, Texas
Mr. Burgess is chairman of the
American Bankers Association and
chairman of FirstCapital Bank of
Texas in Midland, Texas.
The original purpose of credit
unions was to provide reasonably
priced credit to low- and moderateincome families. By the 1960s, the
original purpose had become subordinated to rampant growth and protection of the tax-exempt status at all
costs. Credit unions’ tax-exempt status is a relic from the distant past
when the focus was on helping families gain access to previously unavailable credit. What’s left of the movement has much less to do with
providing credit to low- and moderate-income families than it does in
the aggrandizement of credit unions,
their officers and employees.
JOHN RIPPEY
Silver Spring, Md.
The federal government’s tax exemption means credit unions have
lower costs of operation, giving them
an unfair advantage in the rates they
are able to offer. In a market where
stagnant real wages have heightened
the sensitivity of consumers to interest rates, this results in business
flowing to credit unions instead of
banks. Credit-union lobbying efforts
have made legislators understand
that clashing with credit unions will
result in upset constituents back
home. It is likely because of this that
no legislator chose to introduce an
amendment to the tax overhaul that
would restore fair competition in
lending. As a result, an important opportunity was missed to get things
right on this topic. Unless this is corrected, however, the long-term impact on the banking industry of this
tax distortion will be very serious—it
will replace community banks with
credit unions.
ALEX URBINA
Cedar Rapids, Iowa
co Fo
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emocrats and the media are accusing the FBI on his Clinton-financed dossier of salaanyone who criticizes special counsel cious allegations against Mr. Trump. The texts
Robert Mueller as Trumpian conspira- explain why Mr. Mueller would remove Mr.
tors trying to undermine his
Strzok, though a straight
More troubling
probe. But who needs critics
shooter wouldn’t typically rewhen Mr. Mueller’s team is
sist turning those messages
evidence of election
doing so much to undermine
over to Congress for as long as
meddling at the bureau. Mr. Mueller did.
its own credibility?
Wednesday’s revelations—
Meanwhile, we’re learning
they’re coming almost daily—
more about the political moinclude the Justice Department’s release of tives of Mr. Mueller’s lieutenant, Andrew Weiss2016 text messages to and from Peter Strzok, mann. Judicial Watch last week released an email
the FBI counterintelligence agent whom Mr. in which Mr. Weissmann expressed his “awe” and
Mueller demoted this summer. The texts, praise for Sally Yates, after the then acting AG and
which he exchanged with senior FBI lawyer Obama holdover refused to implement Mr.
Lisa Page, contain expletive-laced tirades Trump’s travel ban.
against Mr. Trump. Such Trump hatred is no
This should trouble anyone who cares about
surprise and not by itself disqualifying. More the integrity of the Justice Department. Ms.
troubling are texts that suggest that some FBI Yates had every right to resign at the time if she
officials may have gone beyond antipathy to felt she couldn’t implement Mr. Trump’s order.
anti-Trump plotting.
But she had no authority as an executive branch
“I want to believe the path you threw out for official to defy a legitimate presidential order.
consideration in Andy’s office—that there’s no Mr. Weissmann’s support for her insubordinaway [Trump] gets elected—but I’m afraid we tion was a declaration that he is part of the “recan’t take that risk,” Mr. Strzok wrote Ms. Page sistance.” This should be unacceptable in a rankin an Aug. 15, 2016 text. He added: “It’s like an ing FBI official, much less someone charged with
insurance policy in the unlikely event you die conducting a fair-minded investigation.
before you’re 40.”
Public confidence isn’t helped by the continuWhat “policy” would that be? The “Andy” in ing Justice and FBI refusal to cooperate with
question is Andrew McCabe, the deputy FBI di- Congress. Deputy Attorney General Rod Rosenrector. FBI officials are allowed to have political stein, who supervises Mr. Mueller, toed the
opinions, but what kind of action were they dis- Mueller-FBI line on Wednesday before the House
cussing that would amount to anti-Trump “in- Oversight Committee. He repeated FBI Director
surance”?
Christopher Wray’s preposterous excuse that he
In another exchange that month, Ms. Page can’t answer questions because of an Inspector
forwarded a Trump-related article and wrote: General probe. And he wouldn’t elaborate on the
“Maybe you’re meant to stay where you are be- news that Nellie Ohr, the wife of senior Justice
cause you’re meant to protect the country from official Bruce Ohr, worked for Fusion GPS, which
that menace.” He thanked her and assured: “Of hired Mr. Steele to gin up his dossier.
course I’ll try and approach it that way.” Mr.
The man who should be most disturbed by
Strzok, recall, is the man who changed the all this is Mr. Mueller, who wants his evidence
words “grossly negligent” to “extremely care- and conclusions to be credible with the public.
less” in James Comey’s July 2016 public exoner- Evidence is building instead that some officials
ation of Hillary Clinton’s emails.
at the FBI—who have worked for him—may
The McCabe meeting came on the heels of have interfered in an American presidential
the FBI’s launch of its counterintelligence probe election. Congress needs to insist on its rights
into Trump-Russia ties. July is also when for- as a co-equal branch of government to discover
mer British spook Christopher Steele briefed the truth.
ly
.
D
REVIEW & OUTLOOK
Alabama Sends a Message
labama voters can be forgiven if they asked about Mr. Moore every day.
preferred to sit out Tuesday’s special
Mr. Moore’s loss is also a defeat for former
Senate election, but those who turned White House aide Steve Bannon, who wants to
out narrowly elected Demorun challengers to every GOP
Roy Moore’s defeat
crat Doug Jones to fill the seat
incumbent next year other
vacated by Attorney General
than Ted Cruz. Mr. Bannon
shows that Steve
Jeff Sessions. The result is a
backed Mr. Moore in the priBannon is for losers.
painful lesson for the Alabama
mary, though the judge had
Republicans who nominated
been removed twice from the
Roy Moore in the September
state Supreme Court for refusprimary. But it’s also a useful act of political hy- ing to follow a legitimate court order. Mr.
giene for the national Republican Party given Moore was a political self-implosion guaranteed
the accusations of sexual misconduct against to happen.
the former judge.
The voting in Alabama showed that thouThe cost of defeat will be high and immediate. sands of Republicans, especially women in the
Despite his campaign vows to “cross the aisle” suburbs, either stayed home or crossed over to
to work with Republicans, Mr. Jones will fit right vote for Mr. Jones. They were rejecting an unacin with Senate Democrats. He will be a reliable ceptable candidate in Mr. Moore, not the navote for Chuck Schumer on any important mat- tional GOP agenda.
ter, including judicial nominees. Had he shown
The Alabama result shows that Mr. Bannon
even a scintilla of moderation on abortion, for cares less about conservative policy victories
example, he would have won in a rout.
than he does personal king-making. He wants
Mr. Moore’s defeat narrows the GOP major- to depose Mitch McConnell as Majority Leader
ity’s margin to 51-49, which will give even more even if it costs Republicans Senate control. GOP
leverage to individual Senators who want to voters, take note: Mr. Bannon is for losers.
grandstand or satisfy a political constituency.
The Moore defeat should also be a lesson to
Alabama evangelical Christians who supported the Republican Party, and President Trump,
Mr. Moore over appointed Sen. Luther Strange that many GOP voters are still at heart characin the GOP primary should know that they have ter voters. They will only accept so much misnow made a conservative Supreme Court nomi- behavior in a politician, no matter the policy
nee less likely if Justice Anthony Kennedy re- stakes. Mr. Trump opposed Mr. Moore in the
tires in 2018. Senators Lisa Murkowski and Su- primary but came around to support him even
san Collins will hold the balance of judicial after the accusations emerged about Mr.
confirmation power, and watch the media lobby Moore’s pursuit of teenage girls while he was
them in waves.
in his 30s. The GOP voters who ignored Mr.
The good news is that Mr. Moore’s loss may Trump and rejected Mr. Moore also want a
give the GOP a better chance of holding the President who acts presidential.
Senate majority next year. Democrats were
As for Alabama Republicans, they’ll get anprimed to make Mr. Moore a national symbol other shot at Mr. Jones in 2020. Maybe they’ll
of sexual harassment to drive turnout among learn from this debacle and nominate a candiwomen. GOP incumbents would have been date worthy of support.
On Disentangling the Palestinians and Israel
In “A Plan to Start Disentangling
Israel and the Palestinians” (op-ed,
Dec. 1), Peter Berkowitz effectively
poses a rarely raised question: What
is Jerusalem? From Palestinian leaders expect no helpful answer, since
they would rather receive nothing
than concede anything. The U.S.
could respond by formally repudiating the “internationalized city” fantasy of the now seven-decades-old
U.N. General Assembly nonbinding,
Arab-rejected (and thus DOA) Palestinian Partition Resolution, minimally
recognizing Israeli sovereignty in
western Jerusalem, and ultimately its
control by historic right and proven
faithful stewardship of the Old City,
as well as eastern Jewish environs.
DANIEL H. TRIGOBOFF
Williamsville, N.Y.
Why Is Sen. Graham Helping
Democratic Contributors?
Your editorial “The Trial Bar’s Tax
Break” (Dec. 5) on Sen. Lindsey Graham’s tax break gift to the trial lawyers gets even more interesting when
you consider that the South Carolina
senator is rewarding West Coast trial
lawyers while effectively helping to
fund his fellow Republicans’ defeat.
For Sen. Graham personally, the
math is easy. According to campaign
finance website opensecrets.org, lawyers are the number-one donor group
to Sen. Graham’s entire Senate career
at more than $4.1 million.
Senator Graham’s amendment to
the tax bill is worth an estimated
$500 million over 10 years to lawyers in places like California, according to Congress’s Joint Committee on
Taxation. Some of that money will
surely see its way into campaigns
aimed at removing fellow Republicans from office.
Trial lawyers overwhelmingly give
to Democrats. For example, the American Association for Justice, the
plaintiffs’ lawyer lobbying group, allocated more than 96% of its nearly
$1.9 million spent in the 2016 election cycle for Democrats, according to
campaign donation records.
As the House and Senate negotiate
a final tax bill, Republican members
should keep in mind that allowing
Sen. Graham’s trial lawyer tax giveaway to stand is akin to funding their
own defeat.
WILMA STOREY
Lexington, S.C.
Israel might re-examine whether
in the Six-Day War’s wake it took too
much in expanding city limits, and
took too little in relinquishing control of the Temple Mount. Despite
demographic and economic allures, it
would face many obstacles in shrinking the city, not least those associated with slicing a border through
heavily populated urban areas. Israel
should wisely avoid again making
any unreciprocated concessions.
Ironically, the most vocal opponents of such municipality boundary
adjustments would likely be Jerusalem’s Arabs. Though loathe to admit
it, they have benefited greatly under
Israeli political control and are
acutely aware of how badly they
might fare under Palestinian Authority misrule. After similar past proposals, many have rushed to adopt
Israeli citizenship. For now though,
they needn’t panic. With both Fatah
and Hamas unwilling to make peace
with Israel, under any terms, their
current circumstances are unlikely to
change anytime soon.
RICHARD D. WILKINS
Syracuse, N.Y.
Why San Francisco’s $15
Minimum Wage Is a Mistake
Regarding the Dec. 6 letter from
Jane Kim about San Francisco being
right on the $15 minimum wage: I
believe the writer though well-intentioned is wrong. Any time a “minimum” is imposed, there will be an
excess of quantity supplied for the
quantity demanded. That is, supply
and demand are not in equilibrium.
Ms. Kim, I’m sure unintentionally, proves my point rather than
reinforces hers, by stating: “Even
at $15 an hour, many jobs go unfilled.” That is, if the employers
truly want these unfilled jobs
filled, they will have to raise the
wage. This is another argument
why market forces should set the
wage for jobs in the private sector.
If government at any level sets a
minimum wage for its workers,
that is its prerogative.
JEFF LUBATKIN
Suffern, N.Y.
Pepper ...
And Salt
THE WALL STREET JOURNAL
Aggressive on Passive Funds
Regarding Barbara Novick’s “Who’s
Afraid of Index Funds?” (op-ed, Nov.
27): Until a majority of active managers beat their benchmark (net of
fees), I’ll retain my retirement portfolio in exchange-traded funds.
JON WYNER
Coral Gables, Fla.
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.
“Now that you’ve taken my order,
what’s the tracking number?”
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Thursday, December 14, 2017 | A19
OPINION
A Booming Economy Will Challenge the Fed
Though the recession ended in
the summer of 2009, the economic
recovery that followed lagged further and further behind historical
norms. In an effort to stimulate the
economy, the Fed undertook three
monetary easing programs that
doubled its postrecession balance
sheet and bought, or offset by buying other securities, some 45% of all
federal debt issued during the
Obama era—four times the share of
federal debt the Fed purchased during World War II.
Today, banks hold $12 of excess
GETTY IMAGES
Normal growth will drive
up the demand for bank
loans and induce lending
of excess reserves.
Since velocity has fallen by
27% over the past decade as
the cost of holding money fell
to virtually zero, we can expect that a rise in interest
rates would induce people to
economize on the holding of
money and cause demand for
goods and services to rise. To
maintain price stability in an
environment of rising interest
rates, the Fed would not only
have to soak up existing excess
reserves; it would also have to
reduce bank reserves to prevent the increase in velocity
from inflating demand and igniting inflation. But each time
it sells securities to try to prevent inflation, the Fed will be
potentially increasing pressure
on interest rates and endangering the recovery.
Is it possible that the Fed,
like Odysseus, can hug the
cliff of Scylla with its high interest
rates and avoid the Charybdis of inflation without crashing into the
cliff and derailing the recovery? It
is possible, but the Fed will not be
headed by the wise Odysseus nor
advised by Athena, the goddess of
wisdom; it will be run by human
beings. And the monetary excesses
of the Obama era represent the
greatest impediment to igniting and
sustaining a full-blown economic
recovery.
end up reducing its balance sheet
and reducing bank reserves without
either slowing economic growth or
igniting inflation. But the danger
posed by the Fed’s bloated balance
sheet and the massive level of
bank-held excess reserves is that
an increase in economic growth
would stimulate demand for bank
credit and force the Fed to move
quickly to sop up excess reserves.
If it moved too slowly, the money
supply would expand and the inflation rate would rise. But by selling
government securities to reduce
bank reserves, the Fed would be
competing against both the government and private borrowers for
available credit. Unless banks reduced excess reserves to offset Fed
asset sales, those asset sales would
drive up interest rates and threaten
the sustainability of the recovery.
The monetary easing of the Obama
years, which did little to stimulate
growth, could now be paid for with
runaway inflation or a crippled recovery or both.
Complicating the matter further,
the Fed can decide how much interest it pays on excess reserves, but
any change in market interest rates
will affect the willingness of banks
to hold excess reserves and alter
the response of banks to a change
in the rate the Fed pays on excess
reserves. A rise in market interest
rates will also increase what economists call the velocity of money, the
ratio of the value of money the
public chooses to hold relative to
the size of gross domestic product.
Mr. Gramm, a former chairman
of the Senate Banking Committee, is
a visiting scholar at the American
Enterprise Institute. Mr. Saving is a
professor of economics and director
of the Private Enterprise Research
Center at Texas A&M University.
ly
.
T
he asset base of the
world’s financial institutions crumbled in the fall
of 2008 as mortgagebacked securities collapsed and credit markets froze. The
Federal Reserve responded by buying
government bonds, pumping liquidity into the financial markets, and
expanding bank reserves.
The Fed also did something that
was not so widely noticed: It started
to pay interest on excess reserves, effectively paying banks not to lend.
That allowed the Fed to expand bank
reserves and inject liquidity into the
financial system without significantly
expanding the money supply.
reserves for every dollar they
are required to hold, and the
Fed balance sheet contains
20% of all publicly held federal
debt and 34% of the value of
all outstanding governmentguaranteed mortgage-backed
securities. While the initial injection of liquidity into the
economy in 2008 clearly
helped stabilize the financial
market and was a classic central-bank response to a financial crisis, the monetary easing program of the Obama era
was unprecedented. At least in
part due to monetary easing,
the Obama administration was
able to double the federal debt
held by the public while reducing the cost of servicing that
debt below the interest costs
that had been incurred when
the debt was only half as
large.
In the past eight years, private
loan demand has been weak in an
economy kept in a stupor by high
taxes and an avalanche of regulations. In this stagnant environment,
the Fed has been able to manage a
massive balance sheet and inflated
bank reserves without igniting inflation or causing interest rates to rise,
further crippling growth. But the
Fed’s challenge will grow enormously
when the economy returns to normal
growth. That will drive up the demand for bank loans, increase interest rates, and induce banks to lend
excess reserves. The money supply
will start to grow.
If the Fed could find just the
right mix of selling more assets
and lowering the rate it pays on excess reserves, it could theoretically
co Fo
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By Phil Gramm
And Thomas R. Saving
If You’ve Heard One Cliché, You’ve Heard Them All
A
bout this much, surely, we can
all agree: At the end of the
day, given that life is a journey, and considering everything that
each of us brings to the table, at a
minimum we need a level playing
field going forward.
If you found yourself nodding
along to that last paragraph, either
you are a ninny, or, more likely, you
have been listening to way too much
inevitably vacuous talk from politicians and punditi on television, and
you have become slightly punchy.
At the end of the day, the
degradation of language
is a problem of culture—
whatever that means.
no
Life isn’t a journey any more than
a journey is life. Why at the end of
the day, and not the beginning?
Where exactly is this table, of what
is it made, and mustn’t it be groaning under the weight of everything
that so many people seem persistently to be bringing to it? As for
that level playing field, grass or AstroTurf? No one bothers to say. That
is probably because they are too
damn busy going forward, ceaselessly forward, ever forward.
Politicians, with their habitual
verbosity, under the constraint of an
interviewer’s questions, find these
clichés useful in filling the gaps in
their nonthinking. Our current president, say this for him, does not indulge in current clichés. Instead he
falls back on older ones, long outworn. The old boy turns out to be
quite as insensitive to language as
he is to human beings—maybe even
a touch more.
The linguist John McWhorter has
characterized Donald Trump’s
speech as “unadorned,” saying that
“this is what language was undoubtedly like when it first emerged
among people who didn’t have writing.” Mr. Trump lauds his appointees for doing “incredible” jobs, until he fires them. Those he pretends
to like are “special, special people,”
and special people, you may have
noticed, tend to be “tremendous.”
As will be the results of all his executive orders and proposed legislation, “tremendous, believe me.” He
uses the word “special” more than
Hallmark Cards.
Another form of degraded language much in current evidence is
what I think of as word climbing,
the linguistic equivalent of social
climbing. Just as the parvenu tries
to elevate himself into a higher social realm, the word climber wishes
to seem more intelligent than he actually is. He uses words or phrases
that are unnecessary or obfuscatory
but that he believes make him sound
thoughtful. Perhaps the most common of such phrases is the academic
“in terms of.” It pops up everywhere—in terms of justice, economics, sales, spumoni, you name it—
and is required nowhere. Am I on a
tirade here? In terms of rage, I’d say
almost.
Another form of word climbing is
mistaking and thereby misusing
words owing to their mere sound,
and thereby lapsing into malapropism—this to give the impression of
cultivation and intellectual penetration. Malapropisms take their name
from the character Mrs. Malaprop in
Richard Sheridan’s 1775 play “The
Rivals.” Mrs. Malaprop says such
things as, “promise to forget this
fellow—to illiterate him, I say, quite
from your memory,” and, “Sure, if I
reprehend any thing in this world, it
is the use of my oracular tongue,
and a nice derangement of epitaphs!” The Kingfish, on the old
“Amos ’n’ Andy” radio show, nicely
played malapropisms for laughs.
“Sapphire’s been galvanizing round
town with this here John,” is one
example I recall. Another is, “You
know, Andy, I ain’t exactly no Jeff
Chandelier.”
There are malaprops that not
many people know are malaprops.
An example that pops up frequently
is the phrase “begs the question,”
which most pols and pundits use to
mean “strongly suggests another
question,” when in fact “begs the
question” is a technical philosophical term meaning that an argument’s
premises dictate its conclusion. In
other words, begging the question is
a form of circular reasoning. Beg no
questions, is my advice.
n-
By Joseph Epstein
PUBLISHED SINCE 1889 BY DOW JONES & COMPANY
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One of the most common wordclimbing terms in use today is “culture.” Losing sports teams, we hear
all too often, have to change their
culture. So, too, corporations in financial difficulties; their culture is
the problem—they need to change
the damn thing. Same of course goes
for sexual harassment in Hollywood,
the media and Congress. These institutions, the scenes and sites of so
much harassment, have to change
their culture, no question about it.
The dandy thing about calling
for a change in culture is that it
gives the speaker a feeling of subtlety, if not profundity, while simultaneously allowing him to avoid really talking about the problem and
its solution. What’s truly needed is
for the coaches and owners of losing sports teams to kick some butt,
for corporations to do some selective firing, and for sexual harassers
to be properly exposed for the
swine they are. After that, if they
can perhaps find a free moment, let
them talk all they want about
changing cultures.
Words, as the saying goes, are
cheap, but never cheaper than when
used to replace thought.
Mr. Epstein is author of the forthcoming “The Ideal of Culture and
Other Essays” (Axios Press) and
“Charm: The Elusive Enchantment”
(Taylor Trade), both to be published
in 2018.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
A20 | Thursday, December 14, 2017
WORLD NEWS
Amendment pushed
by lawmakers reflects
Theresa May’s fragile
grip on power
BY JASON DOUGLAS
AND WIKTOR SZARY
LONDON—Prime Minister
Theresa May suffered a sharp
political setback Wednesday
when lawmakers approved a
measure giving Parliament a
greater say on the terms of
Britain’s exit from the European Union.
Eleven rebels from her own
Conservative Party joined opposition lawmakers to insert
in the government’s flagship
Brexit legislation a provision
giving Parliament the power
to reject whatever divorce
terms Mrs. May negotiates
with the EU. The government
had previously offered Parliament a straight take-it-orleave-it vote on the final withdrawal deal before Britain’s
exit in March 2019.
Mrs. May’s defeat, coming
on the eve of a crucial meeting
of European leaders in Brussels, reflects her fragile grip
on power after her party lost
its governing majority in a
snap election in June.
It tarnishes what had otherwise been a successful two
weeks for her rocky premiership. Last week, she clinched
agreement with EU negotiators
over a handful of thorny Brexit
issues that paved the way for
talks to move onto trade and
other issues London regarded
as critical to making Brexit a
success. EU leaders meeting
Thursday and Friday are expected to accept negotiators’
recommendation to advance to
the next stage of discussions.
The defeat in Parliament’s
House of Commons raises
fresh questions about what
sort of Brexit deal the U.K. will
eventually strike. The majority
vote Wednesday in favor of
giving Parliament a bigger role
was carried by lawmakers who
argue the U.K. should maintain
the closest possible links with
the bloc, rather than opt for
the clean break that Mrs. May
advocates.
That increases the chance
that Parliament could reject
the full divorce deal Mrs. May
brings back once negotiations
conclude late next year, said
Mujtaba Rahman, Europe head
for the consultancy Eurasia
Group. “This is a big setback
for May,” he said.
PA WIRE/ZUMA PRESS
U.K. Parliament Gets More Say on Brexit
Theresa May, shown addressing lawmakers, attends a key meeting of European leaders on Thursday.
Jeremy Corbyn, leader of
the main opposition Labour
Party, described the development as “a humiliating loss of
authority” for Mrs. May’s government. “Theresa May has
resisted democratic accountability. Her refusal to listen
means she will now have to
accept Parliament taking back
control,” he said in a message
on his official Facebook page.
In Wednesday’s vote, lawmakers voted 309 to 305 in favor of an amendment to the
government’s Brexit legislation
advanced by Dominic Grieve, a
senior member of Mrs. May’s
ruling Conservatives.
The amendment required
that the U.K.’s departure from
the EU be approved by a formal act of Parliament, effectively allowing lawmakers to
reject whatever divorce terms
Mrs. May agrees to with Brussels over Britain’s withdrawal
and send the government back
to the negotiating table.
The government had argued
such a provision risked weakening its clout in negotiations.
Some pro-Brexit lawmakers
saw it as an attempt to prevent Brexit altogether.
Mr. Grieve told colleagues
in Parliament before the vote
that the U.K. is divided over
Brexit
and
Parliament
shouldn’t give the government
“a blank check” to implement
a withdrawal agreement.
“It’s not for Parliament to
simply roll over and accept
something because that’s what
the government says we
should do,” Mr. Grieve said.
Mr. Grieve, a former U.K.
attorney general, said the divorce deal could be challenged
in court if it was implemented
without the full backing of
Parliament. His amendment
was supported by opposition
parties and 10 other Conservatives, enough to overcome the
wafer-thin majority Mrs.
May’s enjoys thanks to the
support of a small group of
Northern Irish lawmakers.
The vote marks the first defeat for the government in a
marathon series of sessions
for lawmakers to examine the
EU Withdrawal Bill, which
would transpose more than
10,000 EU laws into U.K. law
once Britain leaves the EU.
years in March elections.
The Kremlin has denied it
played any role in interfering
in the 2016 U.S. presidential
election. But the mere suspicion that Mr. Putin and his alleged legion of hackers managed to throw a U.S. election
feeds perfectly into the president’s narrative of state
power, figures in Russia’s embattled liberal opposition say.
“This is one of the trumps
of the Kremlin to make them
look all powerful,” said Vitali
Shkliarov, a Belarusian political adviser. “Secondly, they
have this picture of an enemy,
and this helps unite people behind Putin.”
A screen showing Mr. Putin at his 2016 year-end press conference.
no
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of Change
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NATALIA KOLESNIKOVA/AGENCE FRANCE PRESSE/GETTY IMAGES
yan, a professor at the Moscow State Institute of International Relations. “It creates
the impression for most of the
population that Russia is like a
besieged fortress, and we need
to rally around the leader.”
That is an image Mr. Putin
is likely to play up as he takes
the stage Thursday for his annual press conference, particularly since he can’t point to
much in the way of economic
success for Russia. The end-ofthe-year televised marathon of
questions and answers gains
special significance this year
as the president seeks to extend his 17-year stint running
the country by another six
n-
MOSCOW—For
Russian
President Vladimir Putin, being cast in the West as a
global supervillain is proving a
boon for his image at home.
The day before Mr. Putin
announced a re-election bid
last week, the International
Olympic Committee banned
Russia’s athletes from competing under their own flag in the
2018 Winter Olympics, citing
evidence of a state-organized
doping campaign extending all
the way to the top echelons of
government.
The president’s loyal oligarchs, already hampered by
international sanctions imposed after Mr. Putin’s 2014
moves to annex the Crimea
and help ethnic Russians gain
control of parts of Ukraine,
have been further stymied by
a new round of U.S. sanctions
imposed in August. Those
measures were meant to punish Russia for its alleged meddling in the 2016 U.S. election,
which U.S. intelligence agencies have blamed directly on
the Kremlin leader.
Far from harming Mr. Putin,
such negative headlines enhance his stature, Russian political observers say.
“They are simply a gift to
Putin,” said Andranik Migran-
co Fo
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BY NATHAN HODGE
ly
.
Western Criticism Bolsters Putin at Home as He Runs Again
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
TECHNOLOGY: GOOGLE SEEKS OUT CHINA’S PRODIGIES B4
BUSINESS & FINANCE
© 2017 Dow Jones & Company. All Rights Reserved.
S&P 2662.85 g 0.05%
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* * * *
S&P IT À 0.04%
THE WALL STREET JOURNAL.
DJ TRANS À 0.30%
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LIBOR 3M 1.588
Thursday, December 14, 2017 | B1
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Ad Firm Is Pressed About Ouster
Target
Boosts
Grocery
Delivery
BY SUZANNE VRANICA
BY KHADEEJA SAFDAR
Martin Agency faces
backlash on handling
of staffer’s exit after
harassment claims
When advertising firm
Martin Agency told its staff
that its award-winning chief
creative officer, Joe Alexander,
who had helped create memorable campaigns for clients
such as Geico and Wal-Mart
Stores, was leaving, it offered
little explanation in the Dec. 1
memo. At an all-hands meeting on Dec. 4, employees seeking an explanation got none.
It was only three days later,
after a report published by
Adweek detailed former em-
ployees’ accusations that Mr.
Alexander engaged in an alleged pattern of harassment,
that the agency said his exit
was the agency’s decision and
called his alleged improper behavior inexcusable.
In an interview Tuesday,
Mr. Alexander said he resigned
and denied the allegations
against him. “In my 26 years
at the agency, I never fostered
or condoned an environment
that was harassing, unsafe or
inappropriate,” he said in an
emailed statement.
The way the agency handled the abrupt exit of its creative star didn’t sit well with
many employees.
“Hollywood and the government are being transparent.
Why can’t we be transparent?”
someone had asked at the all-
hands meeting, according to
people who attended.
Amid a national movement
to root out sexual harassment
in the workplace, the Martin
Agency’s situation highlights
the potential backlash that can
await companies that try to
remove alleged harassers
without giving an accounting
of their alleged misconduct.
Such abrupt exits can leave
employees feeling their employers have failed to police
wrongdoing.
The Martin Agency defended its handling of Mr. Alexander’s departure. “We take
every accusation of harassment seriously. Every statement we’ve made at every
step of this unfortunate story
was carefully written to protect the identity of the brave
woman who came forward,”
the Martin Agency said in a
statement this week, referring
to a current employee whose
complaint the company says
triggered its investigation.
“We understand that our language caused some frustration
but we’ve explained our decision to our staff and they respect our decision to protect
our employee.”
On Tuesday, parent company Interpublic Group of
Cos. installed new leadership
at the Martin Agency, naming
Kristen Cavallo, currently the
U.S. chief strategy officer at
another Interpublic agency,
MullenLowe, as its first female
chief executive.
The episode also raised
questions about the responsibilities of big conglomerates
to know what goes on in corners of their empires.
Interpublic, with more than
50,000 employees and 1,264
offices world-wide, said it is
conducting its own investigation into the Martin Agency’s
handling of complaints, its
management practices and
culture. A spokesman for Interpublic Group said that it
first learned of Mr. Alexander’s alleged misconduct in
mid-November.
“We’ve shown that IPG
takes swift and decisive action
when we are made aware of
behavior by individuals that
runs counter to our values and
guidelines,” the parent company said in a statement.
Advertising has long had a
reputation as an industry
Please see ADS page B2
RUNGROJ YONGRIT/EPA/SHUTTERSTOCK
co Fo
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ly
.
Toyota Joins the Charge on Electric Cars
Target Corp. is paying $550
million to acquire grocery delivery startup Shipt Inc., moving to match services that
have been rolled out by rivals
Amazon.com Inc. and WalMart Stores Inc.
Shipt, like rival Instacart,
uses thousands of contractors
to buy products at retail
stores and deliver them to
customers. It charges a $99
membership fee, and its shoppers buy products from local
stores, including grocers like
Kroger Co. and Costco Wholesale Corp. Shipt typically sells
items at a slight premium to
the in-store price and charges
delivery fees for orders less
than $35.
For Target, the deal helps
the company quickly boost its
delivery services, an area
where rivals have been aggressively expanding. WalMart, which sells far more
groceries, has expanded curbside grocery pickup this year
and programs to make home
grocery deliveries. Amazon
has upended the grocery market with its acquisition of
Whole Foods and rapid
growth of its Pantry and
Fresh delivery services.
Concentrated in cities and
surrounding suburbs, grocery
delivery is still a small business, accounting for less than
2% of last year’s $715 billion in
food-retail sales, according to
research firm Technomic Inc.
Amazon’s Fresh, Prime and
Prime Now services account
for more than half of online
food orders.
Target said the acquisition
would allow it to offer sameday delivery services in about
half of its Target stores by
early 2018. It plans to have the
service in all major markets
before next year’s holiday season. Currently, the retailer has
used a partnership with Instacart to deliver groceries in
three markets.
Shipt, which was founded in
2014 in Birmingham, Ala., offers its service in more than
70 cities with 20,000 shoppers. The startup, which has
about 275 employees, has
raised more than $60 million
in venture capital, from backers including Greycroft Partners and Harbert Venture
Partners.
The acquisition puts Target
“several years ahead” in its efforts to offer delivery services
to customers, said John Mulligan, Target’s chief operating
officer.
Executives didn’t disclose
whether Shipt is profitable or
how much revenue it is expected to generate this year.
Target said it expects the
transaction to add to its earnings starting in 2018.
Target said Shipt will operate as a subsidiary and seek to
maintain its partnerships with
other chains but won’t use the
customer data of other retailers on the platform. “We’re
going to be very respectful of
the data of other companies,”
said Mr. Mulligan.
HOT WHEELS: Toyota is setting ambitious goals for its hybrid and electric vehicles, promising the category will account for half of its global sales by 2030. Akio
Toyoda, the auto maker’s president, disclosed the target Wednesday in Tokyo, where he announced cooperation with Panasonic on battery technology. B2
n-
Bitcoin Fever Spreads to Commodity Traders
Switching Strategies
Total funds launched by year
Commodity hedge funds
150 funds
no
Some traders see opportunity in bitcoin, while commodities trading
has become difficult.
Cryptocurrency funds
150 funds
125
125
100
100
75
75
50
50
25
25
0
0
2011 ’12 ’13 ’14 ’15 ’16 ’17*
1
0 2
2011 ’12 ’13 ’14 ’15 ’16 ’17*
*Through Dec. 8
Sources: EurekaHedge (commodity); Autonomous Next (cryptocurrency)
THE WALL STREET JOURNAL.
BY STEPHANIE YANG
AND ALISON SIDER
Traders weary of modest
returns in commodity markets
are rushing into the booming
world of bitcoin, seeking to
mint money in one of the riskiest assets.
Bitcoin prices have surged
more than 19-fold, surpassing
$19,000 at one point this year,
a run-up that has jolted investors world-wide into betting
on the digital currency. As bitcoin has sped through sudden
gains and drops, traders used
to wild swings in commodity
prices are trying to reap profits in cryptocurrencies.
“They’ve all got bitcoin fever,” said Fred Grede, a former
executive at the Chicago Board
of Trade and Hong Kong Fu-
tures Exchange. “Existing markets are harder to trade, more
competitive. They’re looking for
more trading opportunities.”
With volatility and interest
in commodities dwindling,
some traders say they can’t afford to lose out on the bitcoin
frenzy, even if the nascent
market is rife with risks. With
a finite number of bitcoins
that can be created through
“mining,” bitcoin isn’t exotic
to commodities traders used
to parsing supply and demand.
So far in bitcoin’s nine-year
history, betting on it has required little need for the specialized tactics used by professional investors and traders in
other markets. Much of this
year’s returns in the digital
currency have come from just
holding it.
As bitcoin’s standing rises
among investors, traders are
looking to bring more traditional
strategies to cryptocurrencies.
Typhon Capital Management, a hedge fund that invests in commodities, plans to
launch several funds dedicated
to cryptocurrencies in January.
The funds, with strategies like
passive investing, algorithmic
trading and arbitraging price
differences, will be led by
George Michalopoulos, who
managed the oil volatility
portfolio at Citadel LLC until
2011.
“The interest has been staggering,” said James Koutoulas,
chief executive of Typhon, citing inquiries from endowments, foundations and family
offices in the Middle East and
Please see BITCOIN page B10
INSIDE
PERSONAL TECHNOLOGY | By Wilson Rothman
First Comes a Minivan, Then Chromebooks
“Time to
get a Chromebook.”
That’s what
my wife told
me a few
weeks ago, after our 9-yearold daughter embarked on a
journaling bender, putting
page after page of thoughts
and stories in Google Docs.
Previously our two children
used our MacBooks when the
need arose—but it seldom
did. Now, the girl was reaching for a laptop every chance
she got.
I knew we’d be getting our
children a computer sooner
or later. I just assumed there
would be more deliberation
over what kind of machine it
would be. Yet after my wife
made her declaration, the
pro-Chromebook argument
just flowed:
They’re by and large
cheaper than low-end MacBooks and decent Windows
laptops.
The children already use
them in school with their
student Google accounts.
Chrome OS is easier to
use and historically less susceptible to malware than Mac
OS and Windows.
Chromebooks are easier
to share than iPads and are
better for typing practice.
And now they even run
Android apps (which, OK, can
be a minus, depending on the
app—I’m looking at you,
“Candy Crush”).
My children are among the
35 million K-12 students in
the U.S. who use Alphabet
Inc.’s Google suite of classroom apps. And while
Chromebooks, first released
in 2011, have taken off in
schools, it was only about a
year ago that retail sales began to shoot up, says Stephen Baker, vice president
and tech industry analyst at
the NPD Group Inc.
Mr. Baker attributes the
boom to two factors: popu-
larity with younger children
and fresh designs with touch
screens, styluses and more.
Like the time my father-inlaw—after the birth of my
second child—said, “I guess
you’re getting a minivan,” I
quickly shifted from denying
the possibility of buying a
Chromebook to assessing
which one to pick.
Two things surprised me
as I began my Chromebook
hunt: How much you could
get for $500 or less, and how
diverse the $400-to-$500 tier
was—a wide assortment of
processors, screen sizes,
weights and frills.
Please see TECH page B4
NEUTRALITY
FADES AS ISSUE
FOR NETFLIX
OPEC EXPECTS
OIL GLUT FOR
ANOTHER YEAR
STREAMING, B2
ENERGY, B11
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B2 | Thursday, December 14, 2017
* ****
INDEX TO BUSINESSES
THE WALL STREET JOURNAL.
BUSINESS & FINANCE
These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.
R
G
Rex Shares................B10
Alphabet...........B1,B4,B6
Gategroup Holding......B2
S
Amazon.com ............... B1
General Motors...........B2
Apple.........A6,B2,B6,B11
Google ......................... B4
Aqua America.............B6
H
Salesforce.com............B6
Shipt............................B1
Slack Technologies ..... B6
Sony.............................B6
Stotz Equipment.........B3
Swissport Group.........B2
AT&T.....................B6,B11
Avolon Holdings..........B2
B
HNA Group..................B2
Honda Motor...............B2
Honeywell International
T
...................................B12
Baidu ........................... B6
Boeing ....................... B12
Bohai Capital Holding.B2
Bramco ........................ B3
I
Inditex.........................B3
Interpublic Group........B1
BTC Korea.Com.........B10
K
C
KKR ............................. A2
Caterpillar ................. B12
L
Cboe Global Markets B10
Layer3 TV....................B6
Comcast.................B2,B6
Lumentum Holdings...B2
Crypto........................B10
M
D
Martin Agency............B1
Microsoft.....................B6
Deutsche Bank............B2
N
E
Evolve Fund Group....B10
F
Facebook......................B6
U
Uber Technologies ...... B6
Deere...........................B3
Dish Network..............B6
Target..........................B1
Textio...........................B6
Time Warner.............B11
T-Mobile US................B6
Toyota Motor..............B2
True Value...................B6
Twitter ........................ B6
21st Century Fox
........................A1,B6,B11
V
Netflix....................B2,B6
Verizon Communications
.....................................B2
Volkswagen.................B2
P
W
Panasonic....................B2
Wal-Mart Stores...A6,B1
Walt Disney...A1,B6,B11
Win Semiconductors..B2
ProShare Capital
Management...........B10
INDEX TO PEOPLE
A
J
P
Alexander, Joe............B1
Ashton, Joe.................B2
Janedis, John............B11
Poutre, Michael ........ B10
C
Cavallo, Kristen .......... B1
Clayton, Jay .............. B10
D
DiResta, Diane............B6
R
Koehler, Lalita.............B2
Rosztoczy, Tom...........B3
L
Legere, John................B6
M
McGeorge, Carolyn ..... B2
Moriarty, Kathleen...B10
Mulligan, John............B1
F
N
Franklin, Christopher..B6
Nadig, Dave...............B10
Nathanson, Michael..B11
H
Hartmann, John..........B6
Hughes, Mike..............B2
S
Schloff, Laurie ............ B6
T
Thooft, Nathan.........B12
Toyoda, Akio ............... B2
W
Wang, Jian..................B2
Winklevoss, Cameron
...................................B10
Winklevoss, Tyler.....B10
O
Y
Osborne, Shaun ........ B11
ADS
The agency’s
handling of the exit
didn’t sit well with
many employees.
combining an electric motor
and a gasoline engine, already
made up about 14% of sales in
2016. Those vehicles are included in Mr. Toyoda’s target
Yu, Kai.........................B4
2011 incident was let go by the
Martin Agency in 2013 and received a settlement of
$275,000, including a provision barring her from working
for Interpublic Group agencies,
the people familiar with the
matter say.
A spokesman for Interpublic said the parent company
first learned about the 2013
settlement in the week of Nov.
20, 2017, and received a copy
of the document on Dec. 6.
In a previously unreported
incident, Carolyn McGeorge, a
senior art director at the Martin Agency from 1992 to 1995,
said she was assaulted by Mr.
Alexander in a hotel room during a business trip to France in
the 1990s. Ms. McGeorge said
he groped her, pushed her onto
the bed and tried to kiss her.
She says she pushed him off.
Several months later, when she
reported the incident to the
agency’s then-president, Mike
Hughes, he told her it would be
handled. She said she was fired
roughly six months later and
was told she wasn’t the right
fit for the agency. Mr. Hughes
died in 2013. In the interview
Tuesday, Mr. Alexander denied
her allegations.
In 2012, according to Lalita
Koehler, a former executive
producer at the agency, Mr.
Alexander offered her the key
to his hotel room while they
were at the Carlton Hotel in
Cannes, France. Ms. Koehler
says she rejected his advances
and told a manager, who said,
“Joe is known for that.”
“The Martin Agency needs
to take responsibility for the
culture that they allowed to
flourish for all these years,”
said Ms. Koehler, who is no
longer at the agency.
Mr. Alexander denied Ms.
Koehler’s accusations.
Representatives for the
Martin Agency and Interpublic
Group had no comment on
specific incidents of alleged
harassment by Mr. Alexander
or the ongoing investigation.
Around the second week of
November, when the Martin
Agency began investigating
Mr. Alexander, a female employee emailed the agency’s
management to tell them the
rumors of Mr. Alexander’s alleged misconduct, a person familiar with the situation said.
After Mr. Alexander’s departure, Interpublic Chief Executive Michael Roth informed
some clients of his exit, saying
in a note reviewed by The Wall
Street Journal, “it wouldn’t be
appropriate to go into the particulars.” The Martin Agency
internal company email to
staff struck the same note.
“We did not initially state
the reason for the separation
to honor the aggrieved employee’s strongly stated desire
for professional and personal
privacy,” Interpublic said in a
statement.
writer at the agency, harassing
her on multiple occasions, according to people familiar
with the woman’s account.
That year, on assignment in
Los Angeles to shoot a commercial for Wal-Mart, Mr. Alexander touched her inappropriately and tried to kiss her,
but she rejected his advances,
according to the people familiar with her account. Days
later, he invited her to his hotel room to discuss business.
After a short conversation, he
got naked, got into bed and
said, “You decide what you
want to do,” said the people
familiar with her account.
The two had a sexual encounter. The people familiar
with her account say that after
enduring his alleged harassment and criticism, she felt
she had no choice. The alleged
harassment continued for
months, the people said.
Mr. Alexander said in the
email Tuesday that the 2011
event was “a consensual incident I am not proud of.” He
said he wasn’t able to comment further because of a confidentiality agreement.
The woman involved in the
around $40 billion over the
next five years to develop
electric vehicles, self-driving
cars and Uber-like mobilityapp services. Honda Motor
Co. said in February 2016 that
hybrid, fully electric and fuelcell vehicles would account for
two-thirds of its global sales
by 2030.
Toyota pioneered hybrid
vehicles in the late 1990s but
has been slower to move into
fully electric vehicles. It has
said it will introduce a massmarket full-electric vehicle in
China within a few years.
Mr. Toyoda said regulatory
changes and the speed of battery development would determine how quickly EVs spread.
HNA Tries to Reassure Its Investors
Chinese conglomerate HNA
Group Co. is working to persuade lenders and investors
that it is financially sound following sharp declines in the
prices of bonds and shares of
some of its units.
HNA, with assets of more
than $140 billion, has been
the subject of rumors in recent days on Chinese social
media, with posts including
apparent screenshots of notices claiming HNA recently
missed some loan payments to
banks.
One of the Chinese banks
mentioned in the social-media
discussions said it couldn’t
verify the authenticity of a
document bearing its name
that was circulating online.
Another bank that some market participants alluded to in
one of the discussions didn’t
respond to a request for comment.
HNA is a sprawling company with assets including airlines and hotels. In a statement on its website and on
popular Chinese messaging
service WeChat, it said late
Wednesday it had held a meeting with eight Chinese banks
that are continuing to extend
credit to the group. They included Bank of China and
China Development Bank.
HNA also said it has over
800 billion yuan ($120.9 billion) in credit lines from financial institutions, of which 310
billion yuan are unused.
Investor concerns have been
mounting about HNA’s high
debt levels and its liquidity.
The company has gone on a
global acquisition spree over
the past two years, scooping
Credit-rating firms noted risks at some HNA subsidiaries like airport ground handler Swissport.
up stakes in Deutsche Bank AG,
the Hilton hotel chain and
other assets, in many cases
borrowing from banks and
other investors to help fund
the deals. HNA has estimated
it has more than $100 billion
in outstanding debt.
Yields on some HNA-related
bonds have soared in recent
weeks, making it costlier for
the company’s subsidiaries to
borrow in the debt markets.
The yield on a U.S. dollar bond
issued by one of HNA’s units
has risen from 8.1% at the beginning of November to 11.5%
late last week. The bond matures in under a year.
Major credit-rating firms
have downgraded or flagged
rising risks at some of HNA’s
subsidiaries, including European airport ground handler
Swissport Group, airline ca-
no
Continued from the prior page
where sexual harassment is
rampant. Still, the Martin
Agency controversy has created shock waves—in part because the firm, known for
crafting slogans such as “Virginia is for Lovers” and characters such as the Geico
Gecko, was widely understood
to be a collegial place to work
with a familylike culture.
“If it can happen at the
Martin agency, then Lord
knows, it happens everywhere
else,” said Jen Mageau, a former Martin Agency employee.
Several other former employees and another person
with knowledge of Mr. Alexander’s alleged conduct told The
Wall Street Journal about allegations of harassment and assault by the executive, including
previously unreported details.
Some described sexual harassment by other male colleagues. Sexual-harassment allegations were made against
two other creative executives
during the Martin Agency’s investigation, said a person familiar with the matter.
In 2011, Mr. Alexander
made several unwanted advances toward a female copy-
Akio Toyoda
says the auto
industry faces
‘change that
comes once in
a hundred
years.’
for 2030 as well as plug-in
hybrids that can draw electricity from a power outlet,
fuel-cell vehicles and fully
electric vehicles.
In 2030, Mr. Toyoda said,
Toyota projects selling about
5.5 million vehicles in those
categories together, or half of
total projected sales. Of those,
4.5 million would be hybrids
and plug-in hybrids, while the
remaining one million would
be fully electric vehicles and
fuel-cell vehicles, he said.
Other car makers have released targets for the next decade calling for a rapid rampup of EV production.
Volkswagen AG said in November it planned to invest
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Brennan, Michael........B3
Buck, Dave..................B3
K
TOKYO—Toyota
Motor
Corp.’s president on Wednesday became the latest auto
chief to offer ambitious targets for hybrid and electric vehicles, saying the category
would make up half of Toyota’s global sales by 2030.
Akio Toyoda unexpectedly
disclosed the target at a news
conference where he announced cooperation on battery technology with Panasonic Corp. Mr. Toyoda said
underlings might scold him afterward for releasing a specific figure, but he said he
wanted to stress the industry’s
rapid shifts.
“The auto industry is now
facing a major change of the
kind that comes once in a hundred years,” he said.
Toyota’s hybrid vehicles,
terer Gategroup Holding AG
and aircraft lessor Avolon
Holdings Ltd.
Shares of several listed
units of HNA also have declined sharply, hampering
their ability to sell stock or
debt to raise funds. On
Wednesday, two dozen executives from HNA Group and its
subsidiaries disclosed in regulatory filings that they would
buy 86.7 million yuan worth of
shares in Bohai Capital Holding Co., a leasing firm.
Bohai Capital’s shares have
fallen more than 25% from
their high point this year, and
the company a few days ago
scrapped a 1.5 billion yuan
short-term bond offering, citing “recent market volatility.”
The share-purchase announcement was an attempt
to shore up investor confi-
n-
B
BY CHIEKO TSUNEOKA
ALEX BAILEY/EVERETT COLLECTION
Atlassian.....................B6
Toyota Sets Big Target for Hybrids
Claire Foy in the Netflix series ‘The Crown.’ The company has gained clout in dealing with telecom firms.
Netflix Now Has Less Need
To Lead Net-Neutrality Fight
BY DREW FITZGERALD
Netflix Inc. helped spark
the debate over net neutrality
three years ago by raising concerns about how its internet
traffic was being handled. But
as the government prepares to
repeal net-neutrality rules
Thursday, the video giant has
been less vocal on a key issue.
That is because its concerns
over so-called interconnections—the places where web
traffic is passed from one
company to the other—have
largely been addressed by
commercial deals. And some
telecom and other companies
that were calling for more
government oversight of these
links have stepped back from
the discussion.
The arcane issue gained attention in early 2014 when
Netflix complained that broadband providers like Comcast
Corp. and Verizon Communications Inc. were creating virtual traffic jams to punish the
streaming video service.
The internet-service providers argued Netflix was responsible and needed to compensate them for the massive
amounts of data that it was
putting on their networks.
Netflix, after serving as the
standard-bearer for the Federal Communications Commission’s stronger rules to protect
web companies from unfair
treatment by carriers, says it
is less at risk now that it is big
enough to strike favorable
deals with telecom companies.
The video-streaming service did just that, reaching
several deals in recent years
to pay broadband providers
for ample bandwidth into their
networks.
“Where net neutrality is really important is the Netflix of
10 years ago,” Chief Executive
Reed Hastings said at a tech
conference in May. “It’s not
our primary battle at this
point.”
Netflix has since eclipsed
many of the broadband providers it once battled. Its domestic subscriber base has
doubled over the past four
years to 53 million, while its
market value quadrupled to
about $80 billion.
It is a far cry from 2014,
when the company launched a
public-relations blitz that included messages on subscribers’ screens blaming broadband providers for poor video
quality.
Netflix said it still supports
net-neutrality protections, including oversight of trafficsharing arrangements, and remains “part of a united front
with other tech companies”
through trade groups.
dence in Bohai Capital. The
executives included HNA
Group Chief Executive Adam
Tan and its co-Chairmen Chen
Feng and Wang Jian, who
each pledged to buy 10 million
yuan worth of Bohai Capital
shares.
Troubles also are bubbling
up in some of HNA’s aviationrelated units. The management
of Hainan Airlines Holding Co.
Ltd., a HNA unit that is a majority shareholder in more
than a dozen HNA-affiliated
airlines, has held internal discussions in recent weeks to determine which lessors the airlines should make lease
payments to first, said a person familiar with the matter. A
HNA spokesman had no immediate comment.
—Yifan Xie, Anjani Trivedi
and Julie Steinberg
BUSINESS
WATCH
GENERAL MOTORS
Ex-UAW Official Exits
Board Amid Inquiry
A former United Auto Workers bargaining official resigned
from General Motors Co.’s board
amid a broad federal investigation into training-center funds
jointly overseen by domestic
auto makers and the union.
GM on Wednesday disclosed
the resignation of Joe Ashton, a
former UAW vice president. Mr.
Ashton was appointed to GM’s
board in 2014 on behalf of the
voluntary employees’ beneficiary
association, or VEBA. Mr. Ashton
hasn’t been charged with wrongdoing. He couldn’t immediately
be reached for comment.
A UAW official had no immediate comment and referred
questions about the board seat
to the union’s VEBA, the UAW
Retiree Medical Benefits Trust. A
spokeswoman for the trust declined to comment. A GM
spokesman declined to comment
on the investigation, which could
affect a UAW department Mr.
Ashton once oversaw.
—John D. Stoll
and Mike Colias
APPLE
Supplier Receives
$390 Million Funding
Apple Inc. is awarding a key
supplier $390 million as part of
its effort to fund U.S. technology
manufacturers.
The funding will enable Finisar
Corp., which supplies technology
for the iPhone X’s facial-recognition capabilities, to boost production and R&D, Apple said. The
award isn’t a debt or equity investment. Apple has pledged to
spend its $1 billion Advanced
Manufacturing Fund in support of
U.S. high-tech manufacturing.
—Cara Lombardo
PHIL NOBLE/REUTERS
Finisar ......................... B2
ly
.
A
Agco.............................B3
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
Thursday, December 14, 2017 | B3
THE WALL STREET JOURNAL.
BUSINESS NEWS
Construction-equipment
dealers have a message for
lawmakers hashing out the tax
bill: Don’t lump us in with
farm-equipment dealers.
By Andrew Tangel,
Bob Tita
and Theo Francis
Both received a last-minute
exception to the House tax
bill’s caps limiting businesses’
deductions of interest expenses, and many agricultureequipment dealers are hoping
to keep that exception as Congress rushes to produce a final
tax-overhaul bill.
But many constructionequipment dealers don’t want
the special treatment because
it comes with a string attached. They wouldn’t be allowed to benefit from a tax
provision the House and Senate bills offer to other businesses: the immediate writeoff of the cost of machinery
they purchase.
The differing views, and the
lobbying that has ensued over
pending bills, show how a
tweak for one industry can
prove problematic for another.
“We just want to be subject
to the law as it’s written and
not carved out of it in any
way,” said Michael Brennan,
president of Bramco Inc., a
Kentucky-based dealer for Komatsu construction machinery
and several other brands.
At issue for the dealers is
how much interest companies
can deduct, and when they can
write off the full cost of newly
acquired inventory.
Equipment dealers often
borrow to purchase items
from manufacturers to sell at
their dealerships, and under
current law they are able to
deduct all of the interest they
incur for what is known as
floor-plan financing. The
House and Senate bills both
Tom Rosztoczy, owner of Deere dealer Stotz Equipment, says a higher tax bill could limit how much he spends on new equipment.
Dealers’ Rules
Last-minute changes in House and Senate tax bills provided special tax rules for vehicle dealers.
RULE
CURRENT LAW
HOUSE TAX BILL
SENATE TAX BILL
Accelerated
depreciation
Deduct expense
over time,
depending on life
of investment
Deduct full cost
immediately for
five years
Generally same as House
bill but phases out over
additional four years
Business
interest
expense
Deductible as
incurred
Deduct interest only up to
30% of an adjusted form of
earnings annually
Similar to House but
using a different
income calculation
Vehicle
dealers
Treated as
other
companies
Deduct full interest for vehicle and
equipment inventory, but no
immediate capital expensing.
Applies to farm- and constructionequipment dealers, as well as auto
dealers and others.
Same as House, but
construction-equipment
dealers don't receive special
rules, meaning they face limits
on interest deductibility but
get immediate expensing.
THE WALL STREET JOURNAL.
Source: GrantThornton, PricewaterhouseCoopers
sought broad changes to the
tax treatment of interest for
companies,
limiting
the
amount firms may deduct to
30% of a specified measure of
earnings, from 100% now.
Restricting farm-equipment
dealers’ interest deductions
could cause them to buy less
inventory or raise prices, and
that could cause sales to fall
at Deere & Co. and other manufacturers such as Agco Corp.
that rely on independent
dealer networks to sell their
products, industry representa-
Arizona-based Deere dealer
Stotz Equipment, said limits
on
interest
deductions
wouldn’t threaten his business, but a higher tax bill
would restrict how much he
can invest in new equipment,
facilities and workers’ pay in a
tight labor market. “If the objective is to stimulate the
economy, then we didn’t stimulate the economy,” he said.
The exception the House
adopted was a welcome
change for auto and farmequipment dealers, and their
representatives were trying to
make sure that exception remains in the final bill.
But construction-equipment
dealers objected to the carveout. Expensing the entire cost
of machinery at one time, as
opposed to over several years
as current tax law requires, is
more valuable to them as they
replace or expand their rental
fleets, which are becoming
more important for the construction business.
ly
.
Farmers and ranchers are
pushing back on an aspect of
the proposed U.S. tax overhaul
that could eliminate a widely
used deduction when much of
the U.S. agriculture sector is
struggling.
The tax bills passed by the
Senate and the House of Representatives both eliminated a
provision in the U.S. tax code
that allows members of agricultural cooperatives to reduce
their taxable income by deducting some co-op costs.
In some cases, the deductions can be substantial. For
U.S. dairy farmers, who milk
an average 210 cows each, the
deduction worked out to about
$100 per cow, according to
Dave Buck, president of the
Minnesota Milk Producers Association, who raises dairy
cows near Goodhue, Minn.
If that deduction disappears, “effectively, it’s going to
raise our taxes,” Mr. Buck said.
Now some farmers and coops are pinning their hopes on
language in the recently
passed Senate version that
provides farm cooperative
members with a 23% deduction on profits that are distributed to members. Yet some cooperative officials say that
approach wouldn’t measure up
to the current deduction structure.
Agriculture groups and
cooperative members had
called on lawmakers to preserve the Domestic Production
Activities Deduction, also
known as Section 199. Farm
groups estimate the deduction
amounts to almost $2 billion a
year total.
The Section 199 deduction
has been critical for farm cooperatives,
organizations
owned by groups of farmers
and ranchers who market their
crops and goods through them.
Sellers of equipment
for construction split
with tractor brethren
over planned overhaul
MARK W. LIPCZYNSKI FOR THE WALL STREET JOURNAL
BY JACOB BUNGE
Bulldozers Push Back on Tax Bill
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Farmers
Press to
Preserve
Deduction
tives say. Higher business
costs could threaten struggling dealers amid a tough
farm economy, or dealers that
borrow to acquire those ailing
rivals, they say. Deere and
Agco declined to comment.
Tom Rosztoczy, owner of
EVERYONE JUST SHOPS
no
DENIS DOYLE/GETTY IMAGES
n-
ONLINE NOW.
The parent company of the Zara fashion chain posted higher nine-month profit and sales.
Inditex Feels Profit Pressures
But Still Skirts Industry Woes
BY JEANNETTE NEUMANN
MADRID—Pressure
on
profit margins continued at
the parent company of Zara,
which has largely avoided the
problems battering the fashion
industry.
Inditex SA, the Spanish
company that owns Zara and
brands such as Massimo Dutti
and Bershka, reported a profit
of €2.34 billion ($2.75 billion)
for the nine months through
Oct. 31, a 6% increase from a
year earlier. Sales, which
strengthened in the run-up to
the holiday season, climbed
10% to €17.96 billion.
However, Inditex’s gross
profit margin for its fiscal third
quarter fell 0.3 percentage points
from a year earlier to 59.4%. Its
full-year gross profit margin has
continued to fall from a peak of
59.8% in fiscal 2013.
While Inditex’s profits outstrip those of rivals, such as
Hennes & Mauritz, analysts
have questioned whether the
margin’s slide at Inditex is due
to short-term factors such as
currency movements or reflects
long-term challenges to its business model.
The company, which is the
world’s largest fashion retailer
by sales, sources the bulk of
its garments close to home,
which allows it to design and
deliver new items to stores in
as little as two weeks. That
rapid-fire turnaround has
made it one of the world’s
most profitable retailers and
helped it weather the shift to
online shopping.
Inditex generates more than
half its sales in more than five
dozen currencies outside the
eurozone, while making most
of its products in Spain. So the
weakening of those currencies
in comparison to the euro has
chipped away at revenue reported in euros.
Executives at the company,
whose full name is Industria de
Diseño Textil SA, said Wednesday that without the negative
currency impact, the gross
margin would have increased
in the fiscal third quarter, but
they didn’t say by how much.
Most analysts attribute the
shrinking margins to currency
effects that they expect to
abate in 2018. Analysts at Macquarie Group expect Inditex’s
gross margin will begin to rise
next fiscal year, after coming in
at 56.6% for the current fiscal
year ending in January.
“If there is one company
which has proven its ability to
outperform even in a hostile
market environment, this is Inditex,” said Macquarie analyst
Andreas Inderst.
Some analysts, however,
think price cuts aimed at buoying sales have hurt Inditex’s
margin. They also believe the
cost of increasing online sales
has taken a toll.
Inditex executives say the
company is constantly adjusting prices but says it doesn’t
have a strategy of slashing
prices of its cheapest garments. “Our pricing policy is
very much stable in all the different geographies,” Inditex
Chief Executive Pablo Isla told
analysts Wednesday
Inditex shares, which were
down 5% year-to-date through
Tuesday, gained 1.7% in Madrid
on Wednesday.
THE TRUTH
Physical stores generate
90.7% of all retail sales*
LEARN THE TRUTH:
SHOPPINGFORTHETRUTH.COM
*According to the U.S. Census Bureau; ICSC Research
WSJ. Custom Studios is a unit of The Wall Street Journal advertising department.
The Wall Street Journal news organization was not involved in the creation of this content.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
B4 | Thursday, December 14, 2017
TECHNOLOGY
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BY LIZA LIN
Alphabet Inc.’s Google has
opened an artificial-intelligence lab in Beijing in a bid
to attract China’s tech prodigies and build its presence in
what has been an elusive
market.
The AI China Center,
launched Wednesday, will
host engineers conducting
basic research, aiming to lure
top Chinese talent in a globally competitive field, Google
said.
“We need to recognize the
opportunity and leadership
that China has already displayed in the area of technology and AI,” said Google
Cloud executive Fei-Fei Li,
who is co-head of the new
lab. “By opening a lab here,
we come here to extend our
hand out, and show this part
of the world we would like to
listen to them, work with
them.”
Google has hired “a handful” of top researchers in
deep learning and naturallanguage processing, and
plans to hire others focusing
on computer vision, said Ms.
Li, who is also director of
Stanford University’s Artificial Intelligence Lab. Google
declined to comment on how
big the center would be in
the future.
The move by Google is part
Chinese Go player Ke Jie at the start of a three-match series with Google’s AI machine in May in China.
of what some see as a push by
the company to reconnect
with China’s massive consumer market.
Google’s search engine has
been blocked in China since
2010, when it refused to submit to government censorship.
That has complicated its ability to offer other services—including Google Cloud, which
runs systems and stores data
for companies on its computers—and new smartphones
and personal assistants designed to work with Google.
Meanwhile, the race to attract the brightest minds in
technology’s hottest areas
gains pace. Talent is a focus
for U.S. and Chinese companies, with firms on both sides
of the Pacific opening research
labs in the other’s backyard.
U.S. companies spent $1.35
billion hiring AI talent between April and September
this year, according to a study
by recruitment platform
Paysa. Google was the fourthlargest recruiter in the field—
behind Amazon.com Inc., Microsoft Corp. and Apple Inc.—
snapping up 142 AI engineers
and investing $33.6 million in
new talent, according to the
study.
China is home to some of
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www.cooktravel.net
(800) 435-8776
Artificial-intelligence
lab opens in Beijing
in race to attract best
and brightest in tech
Legal Notices
To advertise: 800-366-3975 or WSJ.com/classifieds
NOTICE OF SALE
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the world’s most successful internet companies and a growing pool of young AI talent,
said Yu Kai, a member of
China’s strategic advisory
board on AI.
The Beijing lab could give
Google access to young Chinese mathematicians eager to
move into AI, said Mr. Yu, who
is also chief executive officer
of Chinese computer-chip and
self-driving-software startup
Horizon Robotics.
Google offered clues about
its China plans in September
when it posted at least four
AI-related jobs on its Beijing
career site.
ly
.
BUSINESS OPPORTUNITIES
WU HONG/EPA/SHUTTERSTOCK
To advertise: 800-366-3975 or WSJ.com/classifieds
' ( )&**&$ " WSJ.com/Tech
Three Admit Roles in 2016 Web Attack
BY DREW FITZGERALD
AND ROBERT MCMILLAN
Three men have admitted
to creating a computer network used in a massive online
attack that blocked out
swaths of the web last year,
according to federal indictments unsealed Tuesday.
The Justice Department
charged Paras Jha, 21 years
old, of Fanwood, N.J.; Josiah
White, 20, of Washington, Pa.;
and Dalton Norman, 21, of
Metairie, La., with building
and renting out the Mirai botnet, a system of more than
300,000 hacked Wi-Fi routers,
video recorders and other devices that were used to flood
other websites with junk online traffic. The government
said the men used the botnet
TECH
Continued from page B1
There are plenty of duds,
but two great models stood
out—for very different reasons. Acer’s $400 Chromebook 15 is a monster of a laptop with a big, vibrant,
touch-friendly wide screen,
clear speakers and a sharp
aluminum body. If I were
parking this thing in a corner, it’s what I’d buy. It’s as
good for movie night as it is
for after-school homework.
Then there’s Samsung’s
skinny Chromebook Pro. With
its squarish 12.3-inch screen,
a stylus for drawing and the
ability to back flip into a
half-inch-thick tablet, it is
versatile and portable.
With the Pro connected to
an external monitor, I was
able to sit in on a videoconference and juggle more than
a dozen open Chrome tabs.
And because the monitor
plugged in via USB-C, it simultaneously charged the
computer.
The shock came when I realized Chromebooks don’t
have any simple parental
controls—especially strange,
given their core demographic.
When students log into a
Chromebook using their
school-issued accounts, the
school’s settings govern how
they use the Google apps,
and Google doesn’t target educational accounts for advertising. Yet that login doesn’t
necessarily prevent children
from visiting unsafe websites.
What Google really needs
to do is add Chromebooks to
its Family Link, a new userfriendly way to monitor and
set limits on children’s internet use.
At press time, Family Link
to shake down victims and to
lease its arsenal out to other
attackers.
Mr. Jha later posted the
Mirai source code on a hacker
forum that enabled others to
carry out more attacks, according to prosecutors.
The three men also pleaded
guilty to running a separate
botnet of more than 100,000
devices used to defraud online
advertisers with fake click
traffic. The Justice Department said the click-fraud
scheme netted more than 200
bitcoin, worth about $180,000
when the botnet was operating in January but more than
$3.2 million at today’s prices.
None of the men have been
sentenced. The indictments
were unsealed in federal court
in Alaska.
Mirai in October 2016
helped bog down the online
technology provider Dyn,
which in turn made Twitter,
Netflix and many websites unreachable for a day.
Mr. Jha separately pleaded
guilty to charges that he ran a
botnet used to attack Rutgers
University while he was a student there, from 2014 to 2016.
Those attacks effectively shut
down a server Rutgers used to
handle assignments and
grades, often for days at a
time, the Justice Department
said.
“Paras Jha is a brilliant
young man whose intellect
and technical skills far exceeded his emotional maturity,” said Mr. Jha’s attorney,
Robert Stahl. “Starting when
he was just 19 years old, he
Hot Chrome
Chromebooks, long stuck in classrooms, are finally heading home.
Here are
two picks:
Price
ACER
CHROMEBOOK 15
SAMSUNG
CHROMEBOOK PRO
$400
$550
Touch screen 15.6" | 1920 x 1080
12.3" | 2400 x 1600
Weight
4 lbs
2.4 lbs
Thickness
0.7"
0.55"
Pros
• Spacious,
good-looking screen
• Sleek aluminum design
• Clear-sounding
speakers
• Wide keyboard
• Responsive keyboard
and trackpad
• Sharp screen
• Doubles as Android
tablet
• Stylus for writing
Cons
• Trackpad and keyboard
felt a little cheap
• Probably too bulky for
some
• Small screen means
less multitasking
• Slightly cramped
keyboard
Chromebook monthly unit sales growth, consistently in double digits
from previous year, exploded in November.
November
98.1%
100%
80
60
40
20
0
July 2016
July ’17
Sources: WSJ analysis of the products; NPD Group/ Retail Tracking Service (sales growth)
THE WALL STREET JOURNAL.
was compatible only with Android devices, but the surge
in Chromebook sales should
pressure Google to expand it.
Kan Liu, Google’s Chrome OS
product-management direc-
tor, said Google is thinking
about how to integrate Family Link into Chromebooks.
(Note: Built-in parental
controls are ideal, but there
are also third-party controls
made a series of mistakes
with significant consequences
that he only now fully appreciates.”
Attorneys for Messrs. Norman and White didn’t respond
to requests for comment.
Federal authorities said
they hoped the indictments
would deter other young
hackers. Mirai, which roughly
translates as “future,” comes
from a Japanese anime show
watched by the three defendants.
“In assisting on this case, I
have been made to feel very
old,” Alaska’s assistant U.S.
attorney, Adam Alexander,
said in a news conference,
adding it is often a struggle to
keep up with the sophistication of some of those involved.
like Circle for your home network.)
Other tasks, fortunately,
have gotten easier. Printing,
for one, works great, especially if you own a newish
wireless printer. With a few
clicks, I was able to find my
Epson on the home network
and print—no driver needed.
Perhaps the biggest recent
Chromebook evolution is
support for the Google Play
store and Android apps.
Many popular apps and
games work great. Adobe
overhauled its Android photo
and drawing apps for
Chromebooks, and Gameloft’s
“Asphalt 8” racing game now
takes keyboard commands.
But not every app is optimized.
The apps are relatively
safe. Mr. Liu says that by default they run in an isolated
container so they couldn’t
corrupt the Chromebook itself. Unless you put the
Chromebook in developer
mode, apps can be installed
only via the Play store. And
you can even disable the Play
store if you want.
NPD’s Mr. Baker says
Chromebooks need to offer
more to gain users looking
for more-powerful primary
computers. Lightweight computers with mobile processors may satisfy gradeschoolers, he says, but “when
you get to high school and
college, those kids want big
screens. They want heavyduty processors; they’re
pounding on those things.”
Chromebooks finally have
serious momentum, in both
sales and development. I
wouldn’t be surprised if, in a
few years, there are Chromebooks to make even power
users happy. Hopefully by
then my daughter will have
published her memoirs and
can pay for her own fancy
laptop.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Thursday, December 14, 2017 | B5
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We see a rising middle class in Southeast Asia move from
motorcycles to cars. Frontier economies leap into the digital era,
adopting fintech faster than developed nations. Trade and travel
surge between emerging nations.
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subsidiaries. Prudential Financial, Inc. of the United States is not affiliated with Prudential plc, which is headquartered in the United Kingdom. The PGIM logo and the Rock design are
service marks of PFI and its related entities, registered in many jurisdictions worldwide.
Alpha indicates the performance, positive or negative, of an investment when compared against an appropriate standard, typically a group of investments known as a market index.
This information is not intended as investment advice and is not a recommendation about managing or investing assets. Investing is subject to investment risk, including the loss of the
principal amount invested.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B6 | Thursday, December 14, 2017
THE WALL STREET JOURNAL.
MANAGEMENT
Gender Bias Crops Up in Job Ads
Phrases like ‘whatever
it takes’ and ‘driving
innovation’ can be a
factor in who applies
BY JOANN S. LUBLIN
Facebook and other big tech companies say they are trying to boost their hiring of women and underrepresented minorities.
“our family” and “empathetic”—
which Textio says tends to correlate with a higher proportion
of applications from women—
more commonly than others in
the study. Yet the overall gender
snapshot at Facebook and Apple
isn’t that different from its
peers in the tech industry,
where women make up roughly
one-third of the workforce.
Facebook and Apple declined to comment.
Salesforce.com Inc.’s more
frequent use of the phrase
“work hard, play hard” could
signal to some prospective applicants that a work-life balance might be hard to
strike, said Ms. Snyder.
“The subtext there is, if I’m
a parent with children, maybe
this isn’t the right place for
me,” said Ms. Snyder. Women
account for roughly 30% of
Salesforce’s workforce.
Salesforce prides itself on
“work-life integration,” said a
Salesforce
spokeswoman.
“While we have ambitious
goals, we also balance that with
a flexible work environment,
collaboration rooms, meditation
rooms, and generous benefits.”
Textio found certain phrases
such as “disciplined” and
“tackle,” used more often by
Netflix and Google, respectively,
statistically correlated to a
more male-dominated applicant
pool. Netflix didn’t respond to a
request for comment and
Google declined to comment.
Atlassian Corp., a maker of
workplace collaboration tools
and a Textio client, said that after it overhauled the language
in its job postings, women accounted for 57% of the class of
new-graduate hires working in
engineering, product management and design in 2017, compared with 10% two years ago
before the language changes.
Among the changes to a recent ad for a new graduate-level
developer: Atlassian removed
references to “Ping-Pong” and
replaced “driving innovation”
with “dreaming up innovative
new features.” Aubrey Blanche,
Atlassian’s global head of diversity and inclusion, said PingPong is tied to stereotypes of
“bro culture,” and “ ‘driving’ can
come across a bit aggressive.”
BUSINESS NEWS
Baidu Unit Pulls Virtual-Reality Avatar
IQIYI
no
BEIJING—A Chinese tech
company pulled offline a virtual-reality avatar depicting a
flirtatious female secretary in
revealing clothes, hours after
being asked whether it fostered
a workplace view of women as
sexual objects.
The virtual-assistant avatar,
named “Vivi,” was in beta testing for a virtual-reality headset
device sold by iQiyi, the online
streaming unit of Baidu Inc.,
which owns China’s biggest internet search engine.
Vivi was ostensibly intended
to help users complete tasks
via voice commands—such as
selecting a film or videogame
to play. But it could also flirt
with users and respond to
commands to dance, according
to user reviews posted on Chinese gaming websites and online forums.
“The most important thing is
she can perform sexy dances,
with her enchanting figure, and
only for you,” one user wrote on
Zhihu, a Chinese Q&A website.
After The Wall Street Journal contacted iQiyi about Vivi,
the company removed the avatar and said in a statement:
“The earlier version of the
product is a beta-testing version designed to gather users’
n-
BY ALYSSA ABKOWITZ
Vivi began as a ‘girlfriend’ but evolved into a personal assistant for a VR headset device sold by iQiyi.
feedback. iQiyi has noticed the
issue raised by media and already taken the product offline
for further modification. We’d
like to make an apology for the
concerns it might have raised.”
The headset was originally
announced in March, when Vivi
was introduced as a “built-in
AI ‘girlfriend.’ ” Revisions in
October placed her in an office
setting. One image posted on
Grapefruit Games, a gaming review website, shows “the boss”
reaching out and touching
Vivi’s breast with a virtual
hand.
Inappropriate sexual behavior in the workplace has been
under the spotlight in the U.S.
recently, following disclosures
involving high-profile business
executives, media personalities
and celebrities.
The #metoo campaign—a
two-word hashtag used in social media encouraging women
to speak out about sexual harassment—hasn’t been as
widespread in China. That is
partly because harassment is
commonplace in the workplace,
said author Leta Hong Fincher.
Her forthcoming book—“Betraying Big Brother: The Rise
of China’s Feminist Resistance”—examines feminism
and gender discrimination in
China.
Employers here can require
job applicants to submit photos
of themselves, and Ms. Fincher
and others say the Vivi avatar
fed into demeaning views of
women in the workplace.
“To come out with these
very eerily lifelike virtual assistants that are clearly encouraging behavior that would be illegal in real life is quite
horrifying,” Ms. Fincher said.
“I don’t know why a company would do this,” said Lu
Xiaoquan, the executive director at Beijing Qianqian Law
Firm, which handles some
workplace gender-discrimination cases.
Vivi attracted relatively
scant attention outside the virtual-reality community, although the avatar was recently
featured in an article by the
South China Morning Post.
—Chunying Zhang
in Shanghai
contributed to this article.
T-Mobile to Buy Startup, Offer Paid-TV Service
BY AUSTEN HUFFORD
AND DREW FITZGERALD
T-Mobile US Inc. said it is
acquiring a streaming video
startup and will launch its own
paid-television service, becoming the latest company to jump
into the crowded online-video
market.
The nation’s third-largest
wireless carrier by subscribers
said Wednesday that it is buying Layer3 TV Inc., a pay-TV
distributor that has targeted
high-end video customers with
networks delivered over the
internet.
The move follows other
companies, including Sony
Corp., Dish Network Corp. and
YouTube owner Alphabet Inc.,
which have launched internetbased video services that tar-
get cable-TV cord-cutters.
Wireless rival AT&T Inc. has
signed up one million customers for its DirecTV Now
streaming service, which it
launched last year and costs as
little as $35 a month.
T-Mobile said it plans to
launch its television offering to
cellphone and home-internet
customers nationwide next
year, but the company didn’t
disclose major details, including
how much the new service will
cost. It plans to make the service available to customers who
aren’t on T-Mobile’s network.
Layer3 is available in five
cities in the U.S., and its service starts at $75 a month.
T-Mobile executives said
the new service can carry all
of Layer3’s available content,
which includes channels from
21st Century Fox Inc., Comcast Corp.’s NBCUniversal and
Walt Disney Co.
Unlike Hulu and Netflix
Inc., which deliver their
stream to consumers through
the commercial internet,
Layer3 has been renting access
to privately managed networks, which is more costly,
but which it says results in
better streaming quality.
Layer3’s approach is still more
affordable than the capital-intensive proposition of stringing wires across the country
like a traditional cable company.
T-Mobile Chief Executive
John Legere said the purchase
would have gone through with
or without a merger with
Sprint Corp., which the companies abandoned this year.
Redbox Expands
Into Digital Realm
After disrupting the DVD
rental business with its ubiquitous kiosks and low prices,
Redbox is getting into the digital game with an offering that
includes every Hollywood studio except Walt Disney Co.,
which it is battling in court.
Closely held Redbox will allow consumers to rent or purchase movies from its apps on
mobile and TV-connected devices beginning Wednesday.
The prices and offerings, starting at about $3.99 for rentals
and $9.99 for purchases, are
similar to those at other stores
She yammered on and on—
and then talked some more.
The very chatty woman was
interviewing this fall to become a vice president of water
utility Aqua America Inc. But
during her corner-office session with Chief Executive
Christopher Franklin, she
spent 25 minutes answering
his
initial
YOUR
question. Her
EXECUTIVE next
reply
CAREER
lasted another
25 minutes.
“I felt like I
was being filibustered,’’ says
Mr. Franklin. “There should be
no need for verbal diarrhea.’’
He didn’t hire the prospect.
Executives who talk too
much get into trouble during
job hunts, board presentations, customer pitches and
networking events. The common but correctable habit often communicates poor preparation, an overblown ego or
low confidence, executive recruiters and coaches say.
In a world where leaders issue policy pronouncements in
140-character bursts, shorter
attention spans mean “executives must make their point
quickly,’’ concurs John Hartmann, head of True Value Co.
The CEO cut short a top
lieutenant’s first presentation
to the hardware cooperative’s
board four years ago. The executive addressed True Value directors 10 minutes longer than
his assigned half hour—without finishing his 20-page presentation. “It’s time to wrap
up,’’ Mr. Hartmann declared.
A rising number of companies assign speech coaches to
star players with talkaholic
tendencies. The help typically
costs between $300 and $500
an hour.
A coach devises practical
remedies that range from rehearsing short scripts to making sure an ally secretly signals when the speaker drones
ly
.
public reckoning following allegations of sexism and harassment, used “whatever it takes”
30 times more often than the
next closest company that was
analyzed. The phrase appeared
in 13% of Uber’s job listings analyzed by Textio, according to
the study. Uber also used the
phrase “high performance culture” more often than its peers.
An Uber spokeswoman said
Uber
eliminated
certain
words from many job postings
earlier this year that the company deemed weren’t inclusive or created biases.
Making tech more inclusive
of minority groups is more
complex than using certain
words. For instance, Facebook
and Apple use language such as
co Fo
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Use of certain phrases like
“whatever it takes” or “tackle”
in job postings could affect
who applies for tech jobs, possibly contributing to the lopsided gender makeup of the industry, new research suggests.
Textio Inc., a Seattle-based
software startup that analyzes
language in job ads, looked at
nearly 25,000 job listings from
10 tech companies, including
Uber Technologies Inc., Alphabet Inc.’s Google, Facebook Inc.
and Netflix Inc., to quantify
commonly used phrases. The job
ads appeared between January
and November and were posted
on sites such as Indeed.com and
the companies’ own websites.
Four of the companies analyzed—Apple Inc., Slack Technologies Inc., Twitter Inc. and
some divisions at Microsoft
Corp.—are Textio clients. For
those companies, and its 146
other customers, Textio’s software examines the full text of
job postings and recommends
changing certain phrases depending on what kind of applicant pool the client is seeking. It
then compares the demographic
backgrounds of the applicants
for the original job postings with
those in the modified batch.
Textio says its findings suggest that certain language correlates to a disproportionate number of male job
applicants in a tech industry
dominated by white or Asian
males. Tech companies including Google and Facebook say
they are trying to hire more
women and underrepresented
minorities. The language in job
postings can also be revealing
about a company’s culture,
said Textio CEO Kieran Snyder.
Ride-sharing company Uber,
which has endured a high-profile
DANIEL LEAL-OLIVAS/AGENCE FRANCE-PRESSE/GETTY IMAGES
BY YOREE KOH
Talkaholics
Hurt Their
Careers,
Firms Say
like Apple Inc.’s iTunes.
Competing against established players in digital is likely
to be challenging for Redbox,
as its success in physical media
has been driven in large part
by its low prices: $1.50 a night
to rent a DVD. But because
studios have greater control
over the digital rights to their
movies, Redbox isn’t able to
undercut its online competitors.
Redbox Chief Executive Galen Smith said he hopes to use
his company’s extensive data
on what its users previously
rented to suggest films they
might like.
“This is an opportunity to
keep people in our ecosystem,”
Mr. Smith said.
—Ben Fritz
Aqua America
CEO Christopher
Franklin said
that one very
loquacious VP
candidate
didn't get hired.
on too long.
Overly talkative people
should picture the word
“WAIT” on a listener’s forehead, suggests Laurie Schloff,
a senior coaching partner at
Speech Improvement Co. The
acronym stands for, “Why Am
I Talking?”
Verbosity can prove especially hazardous for job seekers. Aqua America’s Mr. Franklin asked the vice president
candidate to briefly describe
her background and why she
wanted to join the company.
The CEO reports the contender kept chatting even after he gave her a healthy
nudge about his desire to pose
more questions. Her uncontrolled loquaciousness was a
derailer, he says.
A professional coach can
help job applicants. Earlier this
year, a woman retained speech
coach Diane DiResta while pursuing a coveted management
role at a multinational development organization.
The applicant says she
learned she would have just
seven minutes to pitch her
qualifications. She was horrified to hear her dry run, recorded by Ms. DiResta. “It was
way longer and full of technical terms that no one would
have been interested in,’’ the
manager recollects.
Ms. DiResta advised her client to craft a concise script focused on the challenge, action
and result for every example.
The manager won the job.
Informal guidance sometimes
cures excessive talkers, including the novice board presenter
at True Value. After that meeting, Mr. Hartmann told his deputy that material already provided to the board “doesn’t need
to be gone over again.’’ He also
stressed the importance of
pausing to solicit feedback.
Heeding the advice, the lieutenant improved his board presentations, the CEO says, adding
that masterful communicators
“spend far more time using
their ears than their voices.’’
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Thursday, December 14, 2017 | B7
MARKETS DIGEST
EQUITIES
S&P 500 Index
Dow Jones Industrial Average
Last Year ago
24585.43 s 80.63, or 0.33%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio 21.65 21.59
P/E estimate *
19.93 18.43
Dividend yield
2.14
2.41
All-time high 24585.43, 12/13/17
Nasdaq Composite Index
Last
2662.85 t 1.26, or 0.05%
High, low, open and close for each
trading day of the past three months.
Year ago
Trailing P/E ratio 24.85 24.87
P/E estimate *
19.78 18.45
Dividend yield
1.90
2.09
All-time high: 2664.11, 12/12/17
Last Year ago
6875.80 s 13.48, or 0.20%
High, low, open and close for each
trading day of the past three months.
Trailing P/E ratio * 26.26
24.02
P/E estimate *
21.05
19.25
Dividend yield
1.06
1.23
All-time high: 6912.36, 11/28/17
Current divisor 0.14523396877348
24600
2700
6900
24000
2650
6750
23400
2600
6600
22800
2550
6450
22200
2500
6300
2450
6150
Session high
t
DOWN
Session open
t
Close
UP
Close
Open
Session low
65-day moving average
65-day moving average
65-day moving average
21600
Bars measure the point change from session's open
Oct.
Nov.
6000
2400
21000
Sept.
Sept.
Dec.
Oct.
Nov.
Sept.
Dec.
Oct.
Nov.
Dec.
Weekly P/E data based on as-reported earnings from Birinyi Associates Inc.
High
Latest
Close
Low
Net chg
% chg
High
52-Week
Low
% chg
YTD
% chg
3-yr. ann.
Dow Jones
24666.02 24518.30 24585.43
80.63
0.33
24585.43 19732.40
24.2
24.4
12.5
Transportation Avg 10467.92 10369.56 10398.98
31.07
0.30
10402.51
8783.74
12.8
15.0
5.6
750.50
2.19
0.29
774.47
645.05
16.3
13.8
7.9
27630.82 27530.89 27530.89
707.83
702.70
703.76
-2.50
1.41
27533.39 23276.73
708.56
600.24
17.6
17.2
18.3
17.0
9.8
10.5
754.09
Utility Average
Total Stock Market
Barron's 400
748.56
Nasdaq Stock Market
Nasdaq Composite
6897.62
Nasdaq 100
6416.83
Standard & Poor's
500 Index
6871.87
6388.41
2671.88
2662.85
-1.26
MidCap 400
SmallCap 600
1894.25
933.51
1882.97
922.59
1883.77
927.62
-0.17
4.27
Other Indexes
Russell 2000
1532.38
1516.08
1524.45
8.33
12739.80 12699.48 12699.48
NYSE Composite
1.70
558.55
555.24
556.36
1.12
NYSE Arca Biotech
4221.86
4152.30
4201.07
54.16
NYSE Arca Pharma
550.49
546.93
548.45
KBW Bank
107.76
105.85
105.88
80.37
76.93
79.89
Value Line
PHLX§ Gold/Silver
PHLX§ Oil Service
PHLX§ Semiconductor
Cboe Volatility
137.38
134.04
134.55
1244.56
10.21
1232.67
9.65
1233.04
10.18
0.54
2.99
-0.14
0.26
6912.36
6422.56
-0.05
2664.11
-0.01
1899.18
944.10
0.46
0.55
0.01
0.20
1.31
0.10
3.89
-2.15 -1.57
5383.12
4863.62
26.5
29.9
2238.83
1660.58
815.62
27.7
31.5
18.2
18.9
13.2
10.6
13.4
10.7
13.9
15.0
10.0
10.3
11.8
Volume, Advancers, Decliners
1544.14
1345.24
12.4
12.3
9.8
12699.48 11056.89
Most-active issues in late trading
Company
Volume
(000)
Symbol
SPDR S&P 500
Close
Net chg
13,318.0
After Hours
% chg
High
0.17
22.15
-0.01
iShares S&P 500 Value ETF IVE
8,149.0 113.78
…
Finl Select Sector SPDR XLF
VanEck Vectors Gold Miner GDX
Low
0.06 267.28 266.62
22.17
-0.05
22.13
unch. 113.78 113.73
5,998.4
27.89
0.02
0.07
28.07
27.84
Twitter
TWTR
5,346.1
21.66
…
unch.
21.75
21.61
CenturyLink
CTL
4,934.5
16.78
0.03
0.18
16.78
16.58
SPDR S&P O&G Exp Prd XOP
4,318.5
34.83
…
unch.
34.90
34.81
Valeant Pharm Intl
3,268.6
22.05
…
unch.
22.21
21.90
10.6
24.00
2.45
11.37
24.50
23.00
103.3 139.90
12.99
VRX
Percentage gainers…
Bandwidth Cl A
BAND
Nordson
NDSN
Myomo
MYO
Stoneridge
SRI
Glu Mobile
GLUU
14.4
14.9
6.5
503.24
9.1
9.9
4.9
10.24 140.00 126.80
4304.77
3075.02
33.3
36.6
7.1
560.52
469.13
14.9
13.9
1.0
107.33
88.02
15.6
15.3
13.8
96.72
73.03
3.7
1.3
5.2
117.79
-27.9
-26.8 -11.7
Dicerna Pharmaceuticals DRNA
894.28 37.9
9.14 -22.8
36.0 22.5
-27.5 -21.5
OneMain Holdings
OMF
NOW Inc.
DNOW
1341.69
16.04
2.62
41.6
2.92
0.20
7.35
2.92
2.72
5.0
24.22
1.56
6.88
24.67
22.66
67.5
4.90
0.26
5.60
5.02
4.59
1,378.7
4.48
-1.36
-23.29
5.86
4.42
20.8
39.75
-4.00
-9.14
43.85
38.50
11.8
7.20
-0.64
-8.16
7.84
7.00
17.8
24.43
-1.93
-7.32
26.72
24.43
18.5
9.56
-0.70
-6.82
10.43
9.56
...And losers
Pier 1 Imports
PIR
ABM Industries
ABM
Percentage Gainers...
Net chg
3038.81
391.80
260.75
The Global Dow
DJ Global Index
DJ Global ex U.S.
DJ Americas
637.71
Sao Paulo Bovespa 72914.33
S&P/TSX Comp
16136.59
S&P/BMV IPC
48276.72
Santiago IPSA
3889.97
390.70
391.03
4002.21
5399.45
13125.64
1457.83
22400.19
550.56
1141.50
10260.50
579.76
9394.55
7496.51
Stoxx Europe 600
Euro Stoxx
Bel-20
CAC 40
DAX
Tel Aviv
FTSE MIB
AEX
RTS Index
IBEX 35
SX All Share
Swiss Market
FTSE 100
Asia-Pacific
Australia
China
Hong Kong
India
Japan
Singapore
South Korea
Taiwan
S&P/ASX 200
6021.80
Shanghai Composite 3303.04
Hang Seng
29222.10
S&P BSE Sensex
33053.04
Nikkei Stock Avg
22758.07
Straits Times
3468.77
Kospi
2480.55
Weighted
10470.70
Latest
% chg
YTD
% chg
0.24
0.13
0.30
7.19
0.50
0.79
–0.01
–0.04
–899.20 –1.22
0.14
22.56
1.21
577.68
1.89
72.18
–0.24
–0.93
–1.97 –0.50
–31.37 –0.78
–27.74 –0.51
–57.89 –0.44
–0.37
–5.39
–327.13 –1.44
–2.31 –0.42
–8.38 –0.73
–0.27
–27.80
–0.21
–1.25
0.35
33.14
–0.05
–3.90
8.60
22.22
428.22
–174.95
–108.10
3.23
19.55
27.42
0.14
0.68
1.49
–0.53
–0.47
no
EMEA
Eurozone
Belgium
France
Germany
Israel
Italy
Netherlands
Russia
Spain
Sweden
Switzerland
U.K.
20.0
20.2
21.9
18.0
21.1
5.6
5.8
20.7
8.1
11.6
11.0
11.0
14.3
–0.9
16.5
13.9
–0.9
9.7
8.5
14.3
5.0
0.09
0.79
0.26
6.3
6.4
32.8
24.1
19.1
20.4
22.4
13.2
Company
Symbol
CounterPath
Wins Finance Holdings
Apollo Medical Holdings
Finisar
Digital Power
CPAH
Jianpu Technology ADR
Smith Micro Software
Arcimoto
Xperi
Eltek
JT
Overstock.com
Chicken Soup Soul Ent A
PPDAI Group ADR
Reata Pharmaceuticals A
Westport Fuel Systems
OSTK
WINS
AMEH
FNSR
DPW
SMSI
FUV
XPER
ELTK
CSSE
PPDF
RETA
WPRT
High
52-Week
Low
% chg
Symbol
Finl Select Sector SPDR
SPDR S&P 500
Bank of America
iShares MSCI Emg Markets
VanEck Vectors Gold Miner
XLF
Finisar
Oasis Petroleum
Valeant Pharm Intl
Advanced Micro Devices
Digital Power
FNSR
BAC
EEM
GDX
6.79 1.75
465.00 19.80
24.75 10.00
36.41 17.20
5.95 0.40
72.4
-24.9
238.5
-24.3
727.9
Helios Matheson Analy
Nordic American Tankers
Oi ADR
LM Funding America
Riot Blockchain
HMNY
8.00
2.82
4.65
23.25
4.37
1.30
0.38
0.61
3.05
0.56
19.40
15.57
15.10
15.10
14.70
8.43 4.75
3.00 0.80
6.35 2.54
45.95 16.70
8.95 2.65
...
79.6
...
-46.4
4.0
Opiant Pharmaceuticals
Ameri Holdings
Presbia
Bristow Group
Net Element
OPNT
60.90
10.51
8.50
25.22
3.15
7.45
1.27
1.00
2.83
0.34
13.94
13.74
13.33
12.64
12.10
65.70 13.75
13.26 6.79
14.63 6.88
40.88 19.48
4.09 0.82
245.0
...
...
16.3
162.5
Payment Data Systems
Direxion Jr Gold Bear 3X
Proteostasis Therapeutics
Broadvision
Civitas Solutions
PYDS
VRX
AMD
DPW
Volume % chg from Latest Session
(000) 65-day avg Close % chg
57.0
27.8
11.9
42.1
93.9
52-Week
High
Low
27.87 -1.24
266.75 -0.01
28.84 -1.64
46.41 1.20
22.16 3.45
28.33 22.00
267.56 222.73
29.50 21.77
47.93 33.94
25.71 18.58
1281.9 23.70 22.80
379.4 8.10 -2.76
209.5 22.05 0.82
-29.2 10.11 2.12
575.9 5.05 21.39
36.41
16.73
22.81
15.65
5.95
17.20
6.69
8.31
9.42
0.40
Selected rates
A consumer rate against its
benchmark over the past year
New car loan
Benchmark
Yields
Treasury
yield
curve
andtoRates
Yield
maturity of current bills,
t
4.00%
Prime rate
2.24%
800-578-4270
3.00
De Witt Savings Bank
Clinton, IL
2.45%
217-935-6342
2.50
State Bank of Cross Plains
2.46%
Cross Plains, WI
608-798-3961
Broadway National Bank
San Antonio, TX
t
Yield/Rate (%)
Last (l)Week ago
Federal-funds rate target
1.00-1.25 1.00-1.25
Prime rate*
4.25
4.25
Libor, 3-month
1.52
1.59
Money market, annual yield
0.33
0.34
Five-year CD, annual yield
1.49
1.49
30-year mortgage, fixed†
3.91
3.92
15-year mortgage, fixed†
3.34
3.32
Jumbo mortgages, $424,100-plus† 4.31
4.33
Five-year adj mortgage (ARM)† 3.77
3.74
New-car loan, 48-month
3.20
3.32
2.50%
210-283-6500
3-yr chg
52-Week Range (%)
Low 0 2 4 6 8 High (pct pts)
0.25 l
l
3.50
0.97 l
0.26 l
1.19 l
l
3.73
l
2.99
l
4.21
l
3.20
l
2.85
1.25
4.25
1.59
0.36
1.49
4.33
3.50
4.87
4.03
3.74
1.00
1.00
1.35
-0.09
-0.03
0.11
0.24
0.10
0.52
0.17
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
Effective Wednesday, December 14, 2017, the WSJ U.S. Prime rate will be 4.50%,
the Federal Funds Discount Rate will be 2.00% and the Federal Funds Target Rate
will be 1.25-1.50%.
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
Wednesday
t
5
2.25
0
1.50
One year ago
0.75
0.00
1
3 6
month(s)
1 2 3 5 710
years
maturity
Euro
10%
3.00
t
2.37%
518-436-9043
2.00
J FMAM J J A S ON D
2017
Yen, euro vs. dollar; dollar vs.
major U.S. trading partners
3.75%
3.32%
TrustCo Bank
Albany, NY
3.50
New car loan
UniBank for Savings
Whitinsville, MA
s
Yen
–5
–10
s
2017
Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group
Corporate Borrowing Rates and Yields
Bond total return index
Close
Yield (%)
Last Week ago
52-Week
High
Low
Total Return (%)
52-wk
3-yr
1465.491
2.191
2.190
2.242
1.818
3.737 1.518
10-yr Treasury, Ryan ALM 1736.311
DJ Corporate
382.295
Aggregate, Barclays Capital 1947.360
High Yield 100, Merrill Lynch 2859.595
Fixed-Rate MBS, Barclays 1990.550
Muni Master, Merrill
521.602
2.353
3.096
2.680
5.577
2.930
2.148
2.330
3.114
2.670
5.566
2.870
2.058
2.609
3.390
2.790
5.890
3.120
2.419
2.058
2.879
2.380
4.948
2.660
1.736
3.831
6.991
4.073
6.825
2.752
4.921
805.211
5.557
5.534
6.221
5.279
9.549 7.412
Treasury, Ryan ALM
EMBI Global, J.P. Morgan
High
52-Week
Low
% chg
6.79
2.65
OIBR.C
5.71
LMFA
2.51
RIOT
23.03
-3.29
-1.02
-1.58
-0.67
-5.17
-32.64
-27.79
-21.67
-21.07
-18.33
38.86
9.30
9.71
6.65
33.27
2.20
2.65
3.82
1.11
3.02
57.2
-70.2
33.1
-43.6
491.2
24.11
1.86
2.18
12.51
4.64
-4.78
-0.35
-0.36
-1.90
-0.68
-16.55
-16.01
-14.17
-13.19
-12.76
51.90
9.00
5.88
21.88
15.40
5.00
1.73
1.86
6.21
2.56
301.2
-71.4
-47.8
-38.2
-45.4
2.58
65.39
5.47
3.35
17.70
-0.33
-8.36
-0.67
-0.40
-2.10
-11.34
-11.34
-10.91
-10.67
-10.61
4.10 1.17
237.42 40.90
16.67 1.41
5.95 3.20
20.98 15.40
55.4
-62.6
-47.8
-35.6
6.3
AMRH
LENS
BRS
NETE
JDST
PTI
BVSN
CIVI
Ranked by change from 65-day average*
Symbol
Volume % chg from Latest Session
(000) 65-day avg Close % chg
52-Week
High
Low
PowerShares Dyn Engy Expl PXE
PowerShares DWA Utilities PUI
iSh Russell Top 200 Grwth IWY
Tortoise NA Pipeline Fund TPYP
FNSR
Finisar
157
123
1,283
584
46,558
1706
1687
1529
1504
1282
21.75
28.89
73.24
23.23
23.70
-0.04
0.17
0.12
0.43
22.80
24.17
29.97
73.53
24.76
36.41
17.35
25.24
56.15
22.16
17.20
SOIL
Glbl X Fertilizers/Potash
FT VI NASDAQ Tech Divd TDIV
SPDR Russ 1000 MomentumONEO
QAT
iSh MSCI Qatar Capped
FlexShares STOXX Gl Broad NFRA
163
707
79
434
472
1203
1176
1151
1144
1122
10.24
35.18
76.93
15.30
49.18
1.07
0.26
0.01
4.48
-0.02
10.46
35.35
77.42
20.57
49.27
8.86
29.49
62.71
13.01
43.08
Country/currency
US$vs,
YTDchg
Wed
in US$ per US$ (%)
1.129
3.833
2.223
5.213
1.894
2.456
Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch
Europe
Argentina peso
.0578 17.3018 9.0
Brazil real
.3021 3.3100 1.7
Canada dollar
.7803 1.2816 –4.7
Chile peso
.001547 646.30 –3.5
Ecuador US dollar
1
1 unch
Mexico peso
.0527 18.9926 –8.4
Uruguay peso
.03451 28.9800 –1.3
Venezuela b. fuerte .094735 10.5558 5.6
Czech Rep. koruna
Denmark krone
Euro area euro
Hungary forint
Iceland krona
Norway krone
Poland zloty
Russia ruble
Sweden krona
Switzerland franc
Turkey lira
Ukraine hryvnia
UK pound
Australian dollar
.7638 1.3092 –5.7
China yuan
.1511 6.6170 –4.7
Hong Kong dollar
.1281 7.8041 0.6
India rupee
.01554 64.330 –5.3
Indonesia rupiah .0000738 13547 0.2
Japan yen
.008886 112.54 –3.8
Kazakhstan tenge .002981 335.50 0.5
Macau pataca
.1244 8.0405 1.6
Malaysia ringgit
.2446 4.0876 –8.9
New Zealand dollar
.7025 1.4235 –1.4
Pakistan rupee
.00914 109.455 4.9
Philippines peso
.0199 50.342 1.5
Singapore dollar
.7433 1.3453 –7.0
South Korea won .0009220 1084.58 –10.2
Sri Lanka rupee
.0065274 153.20 3.2
Taiwan dollar
.03331 30.023 –7.5
Thailand baht
.03074 32.530 –9.2
Vietnam dong
.00004403 22714 –0.3
Commodities
.04608 21.700 –15.5
.1589 6.2936 –11.0
1.1827 .8456 –11.1
.003760 265.95 –9.6
.009614 104.02 –7.9
.1201 8.3253 –3.7
.2804 3.5669 –14.8
.01707 58.575 –4.4
.1189 8.4133 –7.6
1.0149 .9853 –3.3
.2623 3.8119 8.2
.0367 27.2595 0.7
1.3419 .7452 –8.0
Middle East/Africa
Bahrain dinar
Egypt pound
Israel shekel
Kuwait dinar
Oman sul rial
Qatar rial
Saudi Arabia riyal
South Africa rand
2.6528 .3770 –0.1
.0559 17.8770 –1.4
.2838 3.5233 –8.4
3.3100 .3021 –1.1
2.5977 .3850
...
.2728 3.666 0.7
.2666 3.7503 –0.01
.0743 13.4616 –1.7
Close Net Chg % Chg YTD%Chg
WSJ Dollar Index 86.76 –0.63–0.72 –6.65
Sources: Tullett Prebon, WSJ Market Data Group
COMMODITIES
Wednesday
52-Week
Pricing trends on someClose
raw materials,
or commodities
Net chg % Chg
High
Low
DJ Commodity
Track the Markets
Compare the performance of selected global stock
indexes, bond ETFs, currencies and commodities at
WSJ.com/TrackTheMarkets
US$vs,
YTDchg
Wed
in US$ per US$ (%)
Country/currency
Americas
Asia-Pacific
WSJ Dollar index
–15
30
Company
Latest Session
Close Net chg % chg
U.S.-dollar foreign-exchange rates in late New York trading
Forex Race
notes and bonds
Bankrate.com avg†:
* Primary market NYSE, NYSE American NYSE Arca only.
†(TRIN) A comparison of the number of advancing and declining
issues with the volume of shares rising and falling. An
Arms of less than 1 indicates buying demand; above 1
indicates selling pressure.
Currencies
s
U.S. consumer rates
NYSE Arca
* Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least
5,000 shares =Has traded fewer than 65 days
* Volumes of 100,000 shares or more are rounded to the nearest thousand
CREDIT MARKETS & CURRENCIES
Consumer Rates and Returns to Investor
Nasdaq
Total volume*1,888,551,663 298,881,175
Adv. volume*1,143,195,684 183,500,508
Decl. volume* 702,124,311 108,424,908
Issues traded
3,076
1,337
Advances
1,804
931
Declines
1,117
374
Unchanged
155
32
New highs
104
194
New lows
51
26
Closing tick
69
54
Closing Arms†
0.99
1.68
Block trades*
6,447
1,457
NAT
Volume Movers
46,558
45,826
45,119
40,375
40,211
OAS
Symbol
62.79
49.48
31.96
22.80
21.39
87,751
84,612
76,796
73,320
68,878
SPY
Company
3.50 1.35
76.62 25.36
22.00 5.33
23.70 4.40
5.05 0.89
Most Active Stocks
Company
Total volume* 873,912,672 15,455,459
Adv. volume* 420,901,095 9,630,791
Decl. volume* 440,313,100 5,427,546
Issues traded
3,099
333
Advances
1,661
188
Declines
1,308
126
Unchanged
130
19
New highs
141
1
New lows
31
10
Closing tick
91
2
Closing Arms†
1.29
0.83
Block trades*
6,651
161
Percentage Losers
Latest Session
Close Net chg % chg
Sources: SIX Financial Information; WSJ Market Data Group
WSJ
.COM
Last
18,238.0 266.92
SPY
559.05
192.66
-0.01
n-
Region/Country Index
Interest rate
NYSE NYSE Amer.
Sources: SIX Financial Information; WSJ Market Data Group
International Stock Indexes
Americas
Brazil
Canada
Mexico
Chile
0.20
0.17
-1.46 -1.36
Philadelphia Stock Exchange
World
0.20
13.48
11.01
6875.80
6394.67
2662.85
-0.01
Trading Diary
Most-active and biggest movers among NYSE, NYSE Arca, NYSE Amer.
and Nasdaq issues from 4 p.m. to 6:30 p.m. ET as reported by electronic
trading services, securities dealers and regional exchanges. Minimum
share price of $2 and minimum after-hours volume of 5,000 shares.
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Industrial Average
Late Trading
ly
.
Major U.S. Stock-Market Indexes
TR/CC CRB Index
Crude oil, $ per barrel
Natural gas, $/MMBtu
Gold, $ per troy oz.
593.34
0.33
183.36
56.60
2.715
1245.40
-0.05
-0.54
0.037
6.90
0.06
616.58
532.01
-0.03 195.14
58.95
-0.95
3.93
1.38
0.56 1346.00
166.50
42.53
2.56
1127.80
% Chg
4.05
YTD
% chg
4.60
-4.39 -4.75
5.36
10.89
-23.31 -27.09
8.30
7.24
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
B8 | Thursday, December 14, 2017
COMMODITIES
Contract
High hilo
Low
Open
Settle
Sugar-World (ICE-US)-112,000 lbs.; cents per lb.
Metal & Petroleum Futures
Contract
Open
High hi lo
Low
Settle
Chg
Copper-High (CMX)-25,000 lbs.; $ per lb.
Dec
2.9930
3.0350
2.9930
3.0295 0.0300
March'18 3.0225 3.0620
3.0130
3.0535 0.0305
Gold (CMX)-100 troy oz.; $ per troy oz.
Dec
1241.90 1254.50
1239.80 1245.40
6.90
Feb'18
1246.30 1259.70
1242.30 1248.60
6.90
April
1250.60 1263.80
1246.70 1253.10
7.00
June
1253.90 1267.60
1251.20 1257.40
7.00
Aug
1258.30 1272.20
1255.60 1261.80
6.90
Dec
1267.40 1280.50
1265.90 1270.80
6.80
Palladium (NYM) - 50 troy oz.; $ per troy oz.
Dec
1023.05 1025.65 s
1023.05 1017.40
1.70
March'18 1002.75 1008.35
997.35 1004.05
1.70
June
991.05 1000.00
990.50
996.95
2.35
Platinum (NYM)-50 troy oz.; $ per troy oz.
Dec
...
...
...
874.50 –0.30
Jan'18
880.60
887.30
t 872.40
875.40 –0.30
Silver (CMX)-5,000 troy oz.; $ per troy oz.
Dec
15.640
15.995
15.620
15.784 0.202
March'18 15.740 16.180
15.685
15.869 0.201
Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl.
Jan
57.45
57.83
56.55
56.60 –0.54
Feb
57.43
57.81
56.53
56.59 –0.57
March
57.43
57.73
56.45
56.50 –0.63
April
57.36
57.62
56.35
56.40 –0.68
June
57.02
57.25
55.99
56.05 –0.73
Dec
55.39
55.51
54.31
54.35 –0.76
NY Harbor ULSD (NYM)-42,000 gal.; $ per gal.
Jan
1.9449
1.9502
1.9030
1.9044 –.0292
Feb
1.9445
1.9501
1.9030
1.9045 –.0290
Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal.
Jan
1.7033
1.7144
1.6438
1.6467 –.0509
Feb
1.7169
1.7300
1.6619
1.6646 –.0483
Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu.
Jan
2.696
2.751
t
2.656
2.715
.037
Feb
2.714
2.763
t
2.669
2.732
.038
March
2.686
2.736
t
2.647
2.704
.034
April
2.618
2.660
t
2.587
2.631
.017
May
2.629
2.666
t
2.597
2.638
.018
Oct
2.735
2.755
t
2.689
2.730
.011
Open
interest
March
May
13.93
13.83
14.02
13.90
13.75
13.64
13.85
13.70
March
May
27.00
27.08
27.00
27.08
26.79
26.80
26.79
26.86
–.11
–.14
March
May
72.91
73.52
74.23
74.65
72.91
73.52
74.13
74.55
1.22 168,095
1.05 46,106
Jan
March
150.00
150.05
152.20
151.60
147.75
148.70
148.45
149.35
Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb.
2,495
136,973
Cotton (ICE-US)-50,000 lbs.; cents per lb.
2,427
337,708
28,414
35,414
11,552
17,977
Orange Juice (ICE-US)-15,000 lbs.; cents per lb.
4,417
4,308
Treasury Bonds (CBT)-$100,000; pts 32nds of 100%
33
32,588
1,200
Dec
153-300 154-270
153-190 154-260 1-01.0 15,669
March'18 152-250 153-260
152-090 153-220 1-01.0 761,174
Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
124-105 124-280
124-050 124-265
15.0 66,206
March'18 124-035 124-210
123-290 124-195
15.5 3,239,401
5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100%
Dec
116-162 116-252
116-117 116-247
9.5 48,986
March'18 116-077 116-190
116-032 116-180
10.2 2,964,214
2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100%
Dec
107-102 107-107
107-085 107-127
3.0 25,571
March'18 107-035 107-072
107-020 107-067
3.2 1,730,394
30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg.
Dec
98.708
98.708
98.703
98.705 –.002 117,171
Jan'18
98.600
98.600
t 98.590
98.595 –.005 349,823
10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100%
Dec
100.359 101.063
100.313 101.047
.547
5,630
March'18 97.672 98.547
t 97.656
98.516
.563 20,911
1 Month Libor (CME)-$3,000,000; pts of 100%
Jan
98.4750 98.4750
t 98.4750 98.4800 –.0025
5,033
Feb
98.4775 98.4775
t 98.4750 98.4800
…
316
Eurodollar (CME)-$1,000,000; pts of 100%
Dec
98.3875 98.3900
98.3750 98.3825 –.0050 1,626,420
March'18 98.2250 98.2500
98.2100 98.2450 .0250 1,486,337
June
98.0700 98.1050
t 98.0500 98.1000 .0300 1,352,003
Dec
97.8850 97.9400
97.8650 97.9350 .0450 1,724,359
3
60,371
788
163,575
233,823
416,128
342,116
168,001
252,566
267,691
99,491
97,637
102,518
88,596
243,196
274,168
257,168
156,338
125,849
82,270
Currency Futures
Japanese Yen (CME)-¥12,500,000; $ per 100¥
Dec
March'18
.8809
.8858
.8895
.8944
.8807
.8855
.8890
.8940
.0084 136,170
.0085 110,882
1.00
503
1.25 852,709
Dec
March'18
.7770
.7780
.7818
.7831
.7765
.7776
.7813
.7825
.0043 107,287
.0043 38,038
6.75
5.50
5
5,100
Dec
March'18
1.3319
1.3367
1.3434
1.3485
1.3314
1.3364
1.3417
1.3471
.0099 118,103
.0104 86,278
3.50 202,172
3.25 229,261
Dec
March'18
1.0087
1.0164
1.0162
1.0253
1.0075
1.0155
1.0159
1.0238
.0078
.0082
2.20
485
2.00 159,028
Dec
Jan'18
Feb
March
June
.7553
.7554
.7564
.7549
.7629
.7640
.7636
.7635
.7636
.7629
.7553
.7553
.7551
.7549
.7614
.7636
.7636
.7634
.7632
.7631
British Pound (CME)-£62,500; $ per £
Swiss Franc (CME)-CHF 125,000; $ per CHF
Australian Dollar (CME)-AUD 100,000; $ per AUD
–.25
90
–.20 164,361
5,747
4,061
5.00
221
6.00 309,857
3.00
7.00
6
42,665
–1.450
–1.250
17,368
20,135
11,726
93,970
–2.40
–2.90
3,804
2,061
.01
.23
3,935
3,850
.05246 .00039 90,055
.05168 .00038 121,373
1.1733
1.1811
1.1824
1.1902
.0082 306,183
.0084 186,069
Dec
March'18
24668 s
24686 s
24525
24543
24466
24485
24627
24646
S&P 500 Index (CME)-$250 x index
101 54,403
103 118,752
Dec
2668.70 2672.00 s
2664.50 2666.40
March'18 2666.00 2675.00 s 2659.90 2669.10
Mini S&P 500 (CME)-$50 x index
Dec
2665.50 2672.50 s
2656.75 2666.50
March'18 2667.75 2675.50 s 2659.25 2669.00
Mini S&P Midcap 400 (CME)-$100 x index
Dec
1884.50 1894.80
1877.80 1884.40
March'18 1888.80 1898.60
1881.60 1887.90
Mini Nasdaq 100 (CME)-$20 x index
Dec
6385.0
6418.8 s
6365.5
6398.5
March'18 6404.3 6437.8 s
6383.0
6417.3
Mini Russell 2000 (ICE-US)-$100 x index
Dec
1515.80 1534.30
1509.60 1525.60
March'18 1518.00 1537.50
1512.60 1529.10
Mini Russell 1000 (ICE-US)-$100 x index
Dec
1478.00 1479.70 s
1474.90 1475.80
March'18 1480.30 1480.50 s 1478.80 1477.80
U.S. Dollar Index (ICE-US)-$1,000 x index
Dec
94.02
94.10
93.34
93.42
March'18
93.64
93.70
92.97
93.02
21
80
21 135,219
1.90
68
1.65 126,609
15.40
1.30
75,239
29,936
1.50 1,287,392
1.25 2,527,944
.70
…
16,227
89,172
14.3 155,641
14.3 205,993
9.50
9.70
57,514
16,190
.10
.40
346
21
–.66
–.68
22,859
19,804
Source: SIX Financial Information
Kerosene-type
jet fuel
Distillates
Heating oil
Diesel
Residual fuel oil
Other oils
...
1,250 1,341
1,252
442,986
226,546
26,082
49
26,033
200,464
-2,900
...
2,300
...
...
...
448
221
24
0
24
197
483
230
26
0
26
204
450
218
24
0
24
194
3,695
...
4
4
4
40,855
128,076
9,434
118,642
31,515
280,035
...
1,200
...
...
...
...
40
129
10
120
31
283
44
156
15
141
42
271
41
128
10
118
32
287
Net crude, petroleum
products, incl. SPR
1,909,966
...
5-year
avg
1,912 2,036
1,917
Current
Total petroleum
product
Year
ago
20,471
...
19,948
18,879
motor gasoline
Kerosene-type
9,091
...
8,895
8,874
jet fuel
Distillates
Residual fuel oil
Propane/propylene
Other oils
1,598
4,380
263
1,388
3,752
4-week
avg
9,170 9,344
9,422
9,854
419
224
37
0
37
187
7,363
483
32
0
32
451
...
...
...
...
...
...
7,202 7,360
488 624
9
98
0
0
9
98
479 526
7,442
503
22
0
22
481
7,930
549
34
0
34
515
...
...
...
...
...
...
69
149
33
116
259
1,087
...
...
...
...
...
...
157
145
28
117
132
829
179
233
3
230
251
539
118
151
37
114
203
804
88
229
80
144
242
670
3
39
132
18
115
39
238
1,880
...
3,991
1,628
4,030
181
1,502
2,665
1,672
4,014
407
1,225
3,449
2,771 3,600
2,829
5,831
Natural gas storage
5-year
avg
4250
Natural gas,
lower 48 states
1,607
4,146
270
...
...
3250
t
9,151
2250
1250
Five-year average
for each week
D J F M A M J
2017
250
J A S O N
Sources: SIX Financial Information via WSJ Market Data Group; U.S. Energy Information Administration; Dow Jones Newswires
Exchange-Traded Portfolios | WSJ.com/ETFresearch
Largest 100 exchange-traded funds, latest session
Wednesday, December 13, 2017
Closing Chg YTD
Symbol Price (%) (%)
AlerianMLPETF
CnsmrDiscSelSector
CnsStapleSelSector
EnSelectSectorSPDR
FinSelSectorSPDR
GuggS&P500EW
HealthCareSelSect
IndSelSectorSPDR
iShIntermCredBd
iSh1-3YCreditBond
iSh3-7YTreasuryBd
iShCoreMSCIEAFE
iShCoreMSCIEmgMk
iShCoreMSCITotInt
iShCoreS&P500
iShCoreS&P MC
iShCoreS&P SC
iShS&PTotlUSStkMkt
iShCoreUSAggBd
iShSelectDividend
iShEdgeMSCIMinEAFE
iShEdgeMSCIMinUSA
iShGoldTr
iShiBoxx$InvGrCpBd
iShiBoxx$HYCpBd
iShJPMUSDEmgBd
iShMBSETF
iShMSCI ACWI
iShMSCI EAFE
iShMSCI EAFE SC
iShMSCIEmgMarkets
AMLP
XLY
XLP
XLE
XLF
RSP
XLV
XLI
CIU
CSJ
IEI
IEFA
IEMG
IXUS
IVV
IJH
IJR
ITOT
AGG
DVY
EFAV
USMV
IAU
LQD
HYG
EMB
MBB
ACWI
EFA
SCZ
EEM
10.81
97.58
56.91
69.49
27.87
100.52
83.98
74.91
109.51
104.75
122.64
65.99
56.04
62.66
268.57
188.38
76.24
61.02
109.41
99.05
73.23
53.03
12.06
121.40
87.38
115.84
106.64
72.05
70.38
63.58
46.41
0.75 –14.2
0.08 19.9
0.57 10.1
–0.14 –7.7
–1.24 19.9
–0.09 16.0
0.35 21.8
0.39 20.4
1.2
0.25
0.13 –0.2
0.1
0.25
0.37 23.0
1.08 32.0
0.56 24.1
–0.02 19.4
0.04 13.9
0.50 10.9
0.05 19.0
1.2
0.28
0.31 11.8
19.6
0.67
0.19 17.3
8.8
0.84
3.6
0.35
1.0
0.06
5.1
0.29
0.3
0.23
0.24 21.8
0.39 21.9
0.44 27.6
1.20 32.6
ETF
ETF
Closing Chg YTD
Symbol Price (%) (%)
iShMSCIEurozone
iShMSCIJapan
iShNasdaqBiotech
iShNatlMuniBd
iShRussell1000Gwth
iShRussell1000
iShRussell1000Val
iShRussell2000Gwth
iShRussell2000
iShRussell2000Val
iShRussell3000
iShRussellMid-Cap
iShRussellMCValue
iShS&PMC400Growth
iShS&P500Growth
iShS&P500Value
iShUSPfdStk
iShTIPSBondETF
iSh1-3YTreasuryBd
iSh7-10YTreasuryBd
iSh20+YTreasuryBd
iShRussellMCGrowth
PIMCOEnhShMaturity
PwrShQQQ 1
PwrShS&P500LoVol
PwrShSrLoanPtf
SPDR BlmBarcHYBd
SPDR Gold
SchwabIntEquity
SchwabUS BrdMkt
SchwabUS LC
SPDR DJIA Tr
SPDR S&PMdCpTr
EZU
EWJ
IBB
MUB
IWF
IWB
IWD
IWO
IWM
IWN
IWV
IWR
IWS
IJK
IVW
IVE
PFF
TIP
SHY
IEF
TLT
IWP
MINT
QQQ
SPLV
BKLN
JNK
GLD
SCHF
SCHB
SCHX
DIA
MDY
Metals
Food
Beef,carcass equiv. index
choice 1-3,600-900 lbs.-u
select 1-3,600-900 lbs.-u
Broilers, National comp wghtd-u,w
Butter,AA Chicago
Cheddar cheese,bbl,Chicago
Cheddar cheese,blk,Chicago
Milk,Nonfat dry,Chicago lb.
Cocoa,Ivory Coast-w
Coffee,Brazilian,Comp
Coffee,Colombian, NY
Eggs,large white,Chicago-u
Flour,hard winter KC
Hams,17-20 lbs,Mid-US fob-u
Hogs,Iowa-So. Minnesota-u
Pork bellies,12-14 lb MidUS-u
Pork loins,13-19 lb MidUS-u
Steers,Tex.-Okla. Choice-u
Steers,feeder,Okla. City-u,w
Fibers and Textiles
Gold, per troy oz
1247.77
1341.35
1242.65
1379.34
*1243.40
*1240.90
1297.50
1309.98
1309.98
1512.23
1225.90
1309.98
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
Grains and Feeds
4.85
110
3.1800
96.0
473.4
233
95
223
2.7650
390.00
25.00
8.0175
Barley,top-quality Mnpls-u
Bran,wheat middlings, KC-u
Corn,No. 2 yellow,Cent IL-bp,u
Corn gluten feed,Midwest-u,w
Corn gluten meal,Midwest-u,w
Cottonseed meal-u,w
Hominy feed,Cent IL-u,w
Meat-bonemeal,50% pro Mnpls-u,w
Oats,No.2 milling,Mnpls-u
Rice, 5% Broken White, Thailand-l,w
Rice, Long Grain Milled, No. 2 AR-u,w
Sorghum,(Milo) No.2 Gulf-u
Silver, troy oz.
15.7500
18.9000
15.7400
19.6750
£11.7600
Engelhard industrial
Engelhard fabricated
Handy & Harman base
Handy & Harman fabricated
LBMA spot price
0.6175
0.7338
*83.45
66.000
n.a.
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
43.55
60.15
106.72
110.79
134.54
148.33
123.84
184.89
151.78
125.91
157.81
206.70
88.54
215.21
153.06
113.78
38.26
113.89
84.02
106.18
127.33
119.55
101.66
155.99
47.99
23.05
36.78
119.17
34.49
64.41
63.70
246.30
343.26
–0.16
0.40
0.91
0.35
0.19
–0.06
–0.27
0.89
0.60
0.19
...
–0.09
–0.17
0.08
0.12
–0.23
–0.29
0.18
0.11
0.41
0.75
0.04
0.03
0.19
...
–0.13
...
0.86
0.38
...
–0.02
0.35
0.01
25.9
23.1
20.6
2.4
28.3
19.2
10.5
20.1
12.6
5.9
18.7
15.6
10.1
18.1
25.7
12.2
2.8
0.6
–0.5
1.3
6.9
22.8
0.3
31.7
15.4
–1.3
0.9
8.7
24.6
18.9
19.6
24.7
13.8
SPDR S&P 500
SPDR S&P Div
TechSelectSector
UtilitiesSelSector
VanEckGoldMiner
VangdInfoTech
VangdSC Val
VangdSC Grwth
VangdDivApp
VangdFTSEDevMk
VangdFTSE EM
VangdFTSE Europe
VangdFinls
VangdFTSEAWxUS
VangdGrowth
VangdHlthCr
VangdHiDiv
VangdIntermBd
VangdIntrCorpBd
VangdLC
VangdMC
VangdMC Val
VangdREIT
VangdS&P500
VangdST Bond
VangdSTCpBd
VangdSC
VangdTotalBd
VangdTotIntlBd
VangdTotIntlStk
VangdTotalStk
VangdTotlWrld
VangdValue
WisdTrEuropeHdg
WisdTrJapanHdg
XtrkrsMSCIEAFE
Closing Chg YTD
Symbol Price (%) (%)
SPY
SDY
XLK
XLU
GDX
VGT
VBR
VBK
VIG
VEA
VWO
VGK
VFH
VEU
VUG
VHT
VYM
BIV
VCIT
VV
VO
VOE
VNQ
VOO
BSV
VCSH
VB
BND
BNDX
VXUS
VTI
VT
VTV
HEDJ
DXJ
DBEF
266.75
96.57
64.15
55.40
22.16
165.16
132.17
159.06
101.41
44.68
44.59
58.60
69.94
54.29
140.61
156.07
85.91
84.37
87.71
122.52
153.76
110.78
84.57
245.04
79.32
79.57
146.70
81.78
55.20
56.39
136.97
73.85
106.22
64.45
58.68
32.05
184.05
165.10
0.8568
2.2125
167.00
145.50
67.00
2132
1.1674
1.3728
1.7650
15.15
0.71
63.17
n.a.
0.8505
n.a.
165.50
Fats and Oils
Corn oil,crude wet/dry mill-u,w
Grease,choice white,Chicago-h
Lard,Chicago-u
Soybean oil,crude;Centl IL-u
Tallow,bleach;Chicago-h
Tallow,edible,Chicago-u
34.0000
0.2300
n.a.
0.3221
0.2650
0.3200
KEY TO CODES: A=ask; B=bid; BP=country elevator bids to producers; C=corrected; E=Manfra,Tordella & Brooks; G=ICE; H=Hurley Brokerage; I=Natural Gas Intelligence;
L=livericeindex.com; M=midday; N=nominal; n.a.=not quoted or not available; R=SNL Energy; S=Platts-TSI; T=Cotlook Limited; U=USDA; W=weekly, Z=not quoted. *Data
as of 12/12
Source: WSJ Market Data Group
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
3.6
YTD total
return (%)
Yield (%)
Latest Low High
Index
Mortgage-Backed Bloomberg Barclays
Broad Market Bloomberg Barclays
1947.36
Total
return
close
2.680 2.380 2.790
U.S. Aggregate
1990.55
1956.53
2.5
Mortgage-Backed
1.9
Ginnie Mae (GNMA) 2.890 2.630 3.090
2.7
Fannie mae (FNMA) 2.940 2.670 3.120
2.8
Freddie Mac (FHLMC) 2.950 2.680 3.130
2.930 2.660 3.120
3.210 3.030 3.520
1167.78
2623.58
4.0 Intermediate
2.820 2.530 3.010
1798.16
3922.52
11.5 Long term
4.030 4.030 4.710
521.60
4.6 Muni Master
2.148 1.736 2.419
2.660 2.470 2.870
364.80
5.0 7-12 year
2.181 1.744 2.516
3.510 3.340 3.870
410.70
6.5
12-22 year
2.479 2.213 2.923
398.75
7.4
22-plus year
2.832 2.716 3.508
2798.55
6.3
U.S. Corporate
4.6 Double-A-rated
570.20
6.9
723.09
Triple-B-rated
High Yield Bonds Merrill Lynch
7.3
417.11
High Yield Constrained 5.769 5.373 6.293
Global Government J.P. Morgan†
Triple-C-rated
10.692 9.584 11.642
546.03
1.7
Global Government 1.400 1.300 1.560
2859.60
6.6
High Yield 100
5.577 4.948 5.890
761.46
1.1
Canada
1.940 1.570 2.190
378.55
7.5
Global High Yield Constrained 5.237 4.934 5.939
374.15
1.4
EMU§
1.007 0.933 1.363
306.22
6.7
Europe High Yield Constrained 2.429 1.897 3.381
718.06
1.6
France
0.740 0.690 1.210
Germany
0.390 0.210 0.620
Japan
0.400 0.340 0.460
Netherlands
0.510 0.360 0.760
U.K.
1.540 1.340 1.790
8.8
418.32
511.86
U.S Agency Bloomberg Barclays
1640.93
2.2
U.S Agency
2.120 1.690 2.170
288.58
1464.51
1.2
10-20 years
1.980 1.490 2.030
565.63
20-plus years
2.890 2.730 3.460
927.12
2.910 2.610 3.090
805.21
8.7
3400.22
5.1 Yankee
-0.5
0.1
-0.1
1.5
8.9
Emerging Markets ** 5.557 5.279 6.221
† In local currency § Euro-zone bonds
Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan
Global Government Bonds: Mapping Yields
Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in
selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session
Country/
Coupon (%) Maturity, in years
1.750
2.250
Year ago
1.831
2.408
1.695
2.406
1.166
2.473
l
1.833
1.805
1.782
6.8
0.1
l
2.531
2.633
2.830
18.6
12.3
35.6
France 2 -0.583 s
10 0.658 s
l
-0.588
-0.574
-242.0
-180.5
l
0.642
0.782
-0.639 -236.5
0.792
-168.9
-176.6
-168.2
Germany 2 -0.736 t
10 0.316 s
l
-0.731
-0.731
-256.2
-191.7
l
0.316
0.419
-0.752 -251.9
0.356 -203.2
-209.2
-211.7
Italy 2 -0.270 s
10 1.770 s
l
-0.317
-0.219
-0.124
-205.3
-214.8
-129.0
l
1.705
1.833
1.873
-57.8
-70.3
-60.0
Japan 2 -0.154 t
10 0.048 s
l
-0.152
-0.169
-0.181
-193.6
-198.3
-134.6
l
0.045
0.052
-236.3
-238.8
Spain 2 -0.358 s
10 1.480 s
l
-0.371
-0.351
-0.280
-214.0
-220.2
-144.6
l
1.458
1.533
1.437
-86.8
-95.0
-103.6
0.480 s
1.218 t
l
0.470
0.493
0.145
-136.1
-102.1
l
1.225
1.330
1.301
-118.3
-117.2
l
l
1.851 s
2.533 s
2.750
Australia 2
10
0.750
0.000
0.500
0.050
2.050
0.100
0.100
2.750
1.450
Spread Under/Over U.S. Treasurys, in basis points
Latest
Prev
Year ago
Month ago
U.S. 2 1.782 t
10 2.348 t
2.750
0.000
Yield (%)
Latest(l) 0 20 40 60 80 100 120 Previous
1.750
U.K. 2
4.250
10
0.085 -229.9
-130.3
-112.9
61.6
Source: Tullett Prebon
Corporate Debt
in that same company’s share price.
Note: Expected changes are provided by Dow Jones Newswires' survey of analysts. Previous and average inventory data are in millions.
ETF
LBMA Platinum Price PM
*883.0
Platinum,Engelhard industrial
880.0
Platinum,Engelhard fabricated
980.0
Palladium,Engelhard industrial
1013.0
Palladium,Engelhard fabricated
1113.0
Aluminum, LME, $ per metric ton
*2004.0
Copper,Comex spot
3.0295
Iron Ore, 62% Fe CFR China-s
69.7
Shredded Scrap, US Midwest-s,w
307
Steel, HRC USA, FOB Midwest Mill-s
640
322.30
9.4200
7.4250
4.2000
3.9925
5.1850
Investment-grade spreads that tightened the most…
Billions of cubic feet; weekly totals
t
1,947
3,737
475
1,286
3,608
5-year
avg
...
Finished
...
...
...
...
...
4-week
avg
9,623
19,843 20,314
9,076
Year
ago
1,186
Weekly Demand, 000s barrels per day
Expected Previous
change
week
Expected Previous
change
week
Current
n-
Natural gas (bcf)
1,247,055
no
Crude oil and
petroleum prod
Crude oil
excluding SPR
Gasoline
Finished gasoline
Reformulated
Conventional
Blend. components
4-week
avg
SoybeanMeal,Cent IL,rail,ton48%-u
Soybeans,No.1 yllw IL-bp,u
Wheat,Spring14%-pro Mnpls-u
Wheat,No.2 soft red,St.Louis-bp,u
Wheat - Hard - KC (USDA) $ per bu-u
Wheat,No.1soft white,Portld,OR-u
Other metals
** EMBI Global Index
Imports, 000s barrels per day
Year
ago
0.9213
0.9957
2.670
2.670
4.420
2.290
2.560
2.080
2.520
59.850
12.100
Wednesday
15.7050
11996
*Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds
Inventories, imports and demand for the week ended December 8. Current figures are in thousands of barrels
or thousands of gallons per day, except natural-gas figures, which are in billions of cubic feet. Natural-gas
import Natural-gas import and demand data are available monthly only.
Expected Previous
Current change
week
Wednesday
(U.S.$ equivalent)
Coins,wholesale $1,000 face-a
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
2464.37
Macro & Market Economics
Watching the Gauges: U.S. Supply and Demand
Inventories, 000s barrels
Wednesday
Energy
U.S. Corporate Indexes Bloomberg Barclays
Mini DJ Industrial Average (CBT)-$5 x index
–.500 10,053
–.775 133,103
.200
.275
.05196
.05121
Index Futures
5.00
81
5.00 206,095
Wednesday, December 13, 2017
These prices reflect buying and selling of a variety of actual or “physical” commodities in the marketplace—
separate from the futures price on an exchange, which reflects what the commodity might be worth in future
months.
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
–49.00
–49.50
Dec
.05209
.05265
March'18 .05128 .05185
Euro (CME)-€125,000; $ per €
Dec
1.1742
1.1835
March'18 1.1817 1.1913
64,671
30,361
.0078 124,611
.0078
1,400
.0078
762
.0078 29,878
.0077
274
Mexican Peso (CME)-MXN 500,000; $ per MXN
Cash Prices
2,894
2,254
–1.50
–.90
Canadian Dollar (CME)-CAD 100,000; $ per CAD
Dec
337.25
337.50
336.50
336.75
March'18 348.00 350.00
347.75
349.00
Oats (CBT)-5,000 bu.; cents per bu.
Dec
236.25
236.75
235.00
234.00
March'18 242.75 254.00
242.25
249.00
Soybeans (CBT)-5,000 bu.; cents per bu.
976.00
981.50
976.00
979.25
Jan
March
988.50
993.00
987.50
990.50
Soybean Meal (CBT)-100 tons; $ per ton.
Dec
322.90
325.50
322.40
325.10
March'18 328.90 331.20
328.70
330.90
Soybean Oil (CBT)-60,000 lbs.; cents per lb.
33.12
33.15
33.00
33.11
Dec
March'18
33.55
33.64
33.15
33.40
Rough Rice (CBT)-2,000 cwt.; $ per cwt.
1220.00 1225.00
1174.00 1177.00
Jan
March
1251.50 1255.00
1204.00 1206.50
Wheat (CBT)-5,000 bu.; cents per bu.
Dec
...
...
...
392.25
March'18 411.25 417.25
411.00
416.75
Wheat (KC)-5,000 bu.; cents per bu.
Dec
397.50
398.00
397.50
399.00
March'18 411.50 417.00
411.25
416.25
Wheat (MPLS)-5,000 bu.; cents per bu.
Dec
...
599.75
599.75
599.75
March'18 605.75 614.00
605.75
612.50
Cattle-Feeder (CME)-50,000 lbs.; cents per lb.
147.325 148.375
145.350 145.650
Jan
March
145.425 146.750
143.725 144.050
Cattle-Live (CME)-40,000 lbs.; cents per lb.
116.425 116.875
115.500 115.650
Dec
Feb'18
119.375 120.000
118.125 118.375
Hogs-Lean (CME)-40,000 lbs.; cents per lb.
Dec
63.825
64.075
63.650
63.950
Feb'18
66.500
67.500
66.325
66.800
Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft.
Jan
420.90
425.70
417.20
421.10
March
414.50
417.50
410.50
414.50
Milk (CME)-200,000 lbs., cents per lb.
Dec
15.57
15.65
15.50
15.61
Jan'18
14.29
14.64
14.21
14.50
Cocoa (ICE-US)-10 metric tons; $ per ton.
1,800
1,800
1,800
1,893
Dec
March'18
1,878
1,905
1,852
1,888
Coffee (ICE-US)-37,500 lbs.; cents per lb.
121.00
121.00
121.00
118.95
Dec
March'18 119.30 120.70
119.00
120.10
.08 404,630
.01 158,823
Interest Rate Futures
Agriculture Futures
Corn (CBT)-5,000 bu.; cents per bu.
Open
interest
Chg
ly
.
Futures Contracts
WSJ.com/commodities
–0.01
0.17
0.03
0.27
3.45
0.10
0.03
0.43
0.16
0.43
1.09
0.14
–1.10
0.52
0.16
0.34
0.09
0.44
0.34
–0.05
–0.06
–0.12
0.17
–0.02
0.14
0.18
0.26
0.28
0.11
0.55
0.01
0.22
–0.18
–0.63
–0.63
–0.31
19.3
12.9
32.7
14.1
5.9
35.9
9.2
19.5
19.1
22.3
24.6
22.2
17.8
22.9
26.1
23.1
13.4
1.6
2.3
19.7
16.8
14.0
2.5
19.4
–0.2
0.3
13.8
1.2
1.7
22.9
18.8
21.1
14.2
12.3
18.4
14.2
Issuer
Symbol Coupon (%)
General Electric
Morgan Stanley
Citigroup
BP Capital Markets
GE
Santander Holdings USA
Becton Dickinson & Co
Bank of New York Mellon
Marathon Petroleum
SOV
MS
C
BPLN
BDX
BK
MPC
4.000
5.450
5.350
2.315
Maturity
Current
Spread*, in basis points
One-day change
Last week
Stock Performance
Close ($)
% chg
Nov. 15, ’23
July 15, ’49
May 15, ’49
Feb. 13, ’20
96
76
190
16
–15
–14
–10
–8
n.a.
n.a.
201
20
17.76
53.18
75.14
...
–0.84
–1.24
–1.33
...
2.650 April 17, ’20
4.669
June 6, ’47
3.550 Sept. 23, ’21
5.125 March 1, ’21
67
143
22
47
–8
–7
–7
–7
65
150
n.a.
57
...
218.94
54.38
64.15
...
–0.02
–1.07
–0.53
…And spreads that widened the most
Teva Pharmaceutical Finance Netherlands III
Harley–Davidson Financial Services
Prudential Financial
PNC Bank NA
TEVA
Viacom
Bank of America
Baxter International
VIA
HOG
PRU
PNC
BAC
BAX
2.800
2.150
5.625
2.450
July 21, ’23
Feb. 26, ’20
June 15, ’43
Nov. 5, ’20
303
55
107
42
18
15
11
10
303
62
114
37
…
…
113.95
…
…
…
–2.10
…
6.250
2.503
2.600
Feb. 28, ’57
Oct. 21, ’22
Aug. 15, ’26
389
66
88
10
9
9
384
64
n.a.
34.15
28.84
64.72
0.59
–1.64
0.64
High-yield issues with the biggest price increases…
Issuer
Symbol
Intelsat Luxembourg S.A.
Hornbeck Offshore Services
California Resources
CenturyLink
INTEL
EXCO Resources
Ensco
Charter Communications Operating
Tesla
XCO
HOS
CRC
CTL
ESV
CHTR
TSLA
Coupon (%)
Maturity
Bond Price as % of face value
Current
One-day change
7.750
June 1, ’21
5.875
April 1, ’20
5.500 Sept. 15, ’21
6.750
Dec. 1, ’23
56.250
66.720
85.000
98.920
7.500 Sept. 15, ’18
4.500
Oct. 1, ’24
5.375
May 1, ’47
5.300 Aug. 15, ’25
2.375
84.500
103.356
95.750
2.50
1.97
1.75
1.64
1.53
1.25
1.14
1.07
Last week
Stock Performance
Close ($)
% chg
55.000
67.000
79.625
95.595
...
3.00
16.04
16.75
...
–0.99
–3.61
6.69
5.590
82.250
103.280
96.000
0.56
5.58
…
339.03
2.11
–2.62
…
–0.59
73.500
99.500
94.750
75.000
...
58.82
15.59
10.20
...
0.86
6.63
1.49
n.a.
106.470
90.500
97.688
…
63.83
...
...
…
0.55
...
...
…And with the biggest price decreases
PetSmart
L Brands
Mattel*
Frontier Communications
PETM
Revlon Consumer Products
T–Mobile USA
MEG Energy
Altice Luxembourg S.A.
REV
LB
MAT
FTR
TMUS
MEGCN
ATCNA
7.125 March 15, ’23
6.950 March 1, ’33
5.450
Nov. 1, ’41
6.250 Sept. 15, ’21
5.750
6.000
6.375
7.750
Feb. 15, ’21
April 15, ’24
Jan. 30, ’23
May 15, ’22
60.000 –5.50
97.750
82.501
73.403
77.000
106.375
90.000
98.625
–2.23
–1.71
–1.60
–1.25
–1.25
–1.00
–0.88
*Estimated spread over 2-year, 3-year, 5-year, 10-year or 30-year hot-run Treasury; 100 basis points=one percentage pt.; change in spread shown is for Z-spread.
Note: Data are for the most active issue of bonds with maturities of two years or more
Sources: MarketAxess Corporate BondTicker; WSJ Market Data Group
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Thursday, December 14, 2017 | B9
* *
BIGGEST 1,000 STOCKS
WSJ.com/stocks
The following explanations apply to NYSE,
NYSE Arca, NYSE MKT and Nasdaq Stock
Market listed securities. Prices are composite
quotations that include primary market trades
as well as trades reported by Nasdaq OMX
BXSM (formerly Boston), Chicago Stock
Exchange, CBOE, National Stock Exchange, ISE
and BATS.
The list comprises the 1,000 largest
companies based on market capitalization.
Underlined quotations are those stocks with
large changes in volume compared with the
issue’s average trading volume.
Boldfaced quotations highlight those issues
whose price changed by 5% or more if their
previous closing price was $2 or higher.
Stock
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.
FreeportMcM FCX 16.32 0.61
s FreseniusMed FMS 52.20 0.26
G H I
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.
A B C
ABB
ABB 26.10 0.07
AECOM
ACM 38.28 -0.54
AES
AES 10.65 -0.07
Aflac
AFL 88.49 -0.27
AGNC Invt AGNC 20.31 0.03
Ansys
ANSS 144.76 -0.57
ASML
ASML 173.36 1.20
AT&T
T
38.04 -0.06
AbbottLabs ABT 55.06 -0.64
s AbbVie
ABBV 97.35 1.05
Abiomed
ABMD 193.06 0.12
Accenture ACN 151.42 -0.68
ActivisionBliz ATVI 64.60 0.20
AcuityBrands AYI 167.44 -6.79
Adient
ADNT 78.85 -1.53
AdobeSystems ADBE 176.83 4.29
AdvanceAuto AAP 102.50 -0.53
AdvMicroDevices AMD 10.11 0.21
AdvSemiEngg ASX 6.53 0.03
s Aegon
AEG 6.21 0.01
AerCap
AER 52.58 0.04
Aetna
AET 179.11 -2.22
AffiliatedMgrs AMG 195.72 -1.03
AgilentTechs A
66.68 -0.38
AgnicoEagle AEM 42.62 0.64
s Agrium
AGU 111.90 0.97
AirProducts APD 162.49 -0.40
AkamaiTech AKAM 56.66 -0.36
AlaskaAir ALK 69.02 -0.78
Albemarle ALB 130.10 -0.26
Alcoa
AA 41.86 -0.54
s AlexandriaRlEst ARE 131.16 -0.24
AlexionPharm ALXN 113.54 -0.06
Alibaba
BABA 176.47 1.83
AlignTech ALGN 235.63 1.26
Alkermes ALKS 52.25 0.10
Alleghany Y
571.40-11.56
Allegion
ALLE 82.64 0.49
Allergan
AGN 169.24 -2.63
AllianceData ADS 234.00 -4.34
AlliantEnergy LNT 44.29 0.28
AllisonTransm ALSN 40.86 -0.54
s Allstate
ALL 103.32 -0.22
s AllyFinancial ALLY 28.68 -0.48
AlnylamPharm ALNY 124.86 -2.43
Alphabet A GOOGL 1051.39 2.62
Alphabet C GOOG 1040.61 0.13
Altaba
AABA 71.24 1.47
AlticeUSA ATUS 19.35 0.30
Altria
MO 72.32 0.60
AlumofChina ACH 15.87 0.22
Amazon.com AMZN 1164.13 -0.95
Ambev
ABEV 6.31 -0.16
Amdocs
DOX 64.67 -0.24
Amerco
UHAL 378.84 -0.82
Ameren
AEE 61.25 -0.11
AmericaMovil A AMOV 17.45 0.57
AmericaMovil AMX 17.44 0.37
AmerAirlines AAL 50.09 -0.38
AmCampus ACC 43.06 -0.49
AEP
AEP 76.51 0.49
AmerExpress AXP 97.78 -1.59
AmericanFin AFG 104.11 -1.19
AmerHomes4Rent AMH 21.91 0.03
AIG
AIG 58.97 -0.96
AmerTowerREIT AMT 143.73 0.22
AmerWaterWorks AWK 89.93 0.61
Ameriprise AMP 166.42 -2.18
AmerisourceBrgn ABC 88.48 0.66
Ametek
AME 71.71 -0.42
Amgen
AMGN 177.38 1.12
Amphenol APH 89.50 -0.17
AnadarkoPetrol APC 48.26 -0.28
AnalogDevices ADI 85.18 -0.30
Andeavor ANDV 108.90 -1.50
AndeavorLog ANDX 47.71 0.65
AB InBev BUD 110.91 -0.21
AnnalyCap NLY 12.12 0.06
AnteroResources AR 18.28 -0.27
Anthem
ANTM 232.06 3.31
Aon
AON 136.56 -1.94
Apache
APA 39.80 0.08
ApartmtInv AIV 43.89 0.01
ApolloGlbMgmt APO 32.17 -0.45
Apple
AAPL 172.27 0.57
ApplMaterials AMAT 50.76 0.29
Aptiv
APTV 83.56 -2.11
AquaAmerica WTR 37.59 0.32
Aramark
ARMK 42.07 -0.20
s ArcelorMittal MT 31.89 0.16
ArchCapital ACGL 90.50 -1.75
ArcherDaniels ADM 40.05 -1.72
Arconic
ARNC 25.18 0.53
AristaNetworks ANET 225.13 6.88
ArrowElec ARW 78.00 -0.36
AstraZeneca AZN 33.57 0.15
Athene
ATH 51.14 -0.58
Atlassian
TEAM 45.98 0.52
AtmosEnergy ATO 89.96 0.68
Autodesk ADSK 106.02 -0.31
Autohome ATHM 61.45 3.91
Autoliv
ALV 125.42 -3.08
ADP
ADP 117.02 -0.03
AutoZone AZO 708.21 -2.84
Avalonbay AVB 182.31 -1.33
Avangrid
AGR 51.60 0.41
AveryDennison AVY 114.37 -0.09
AxaltaCoating AXTA 31.75 -0.31
BB&T
BBT 49.42 -0.86
s BCE
BCE 48.91 0.31
BHPBilliton BHP 42.36 0.45
BHPBilliton BBL 37.31 0.50
BOK Fin
BOKF 89.19 0.82
BP
BP 40.65 -0.01
BRF
BRFS 11.19 -0.15
BT Group
BT 18.26 0.17
BWX Tech BWXT 60.57 -0.25
Baidu
BIDU 233.24 0.51
BakerHughes BHGE 30.33 -0.62
Ball
BLL 38.64 -0.25
BancoBilbaoViz BBVA 8.44 -0.03
BancodeChile BCH 84.55 0.24
BancoMacro BMA 118.23 -2.69
BcoSantChile BSAC 28.13 0.36
BancoSantander SAN 6.59 -0.06
BanColombia CIB 39.44 0.12
BankofAmerica BAC 28.84 -0.48
BankofMontreal BMO 78.56 0.11
Stock
Net
Sym Close Chg
BankNY Mellon BK 54.38 -0.59
BkNovaScotia BNS 64.72 0.15
BankofOzarks OZRK 46.51 0.38
Barclays
BCS 10.77 0.12
Bard CR
BCR 332.00 -0.09
BarrickGold ABX 14.11 0.47
BaxterIntl BAX 64.72 0.41
BectonDicknsn BDX 218.94 -0.05
Berkley
WRB 70.50 -0.52
BerkHathwy A BRK.A 296180-2450.00
BerkHathwy B BRK.B 197.40 -1.67
BerryGlobal BERY 59.37 -0.43
s BestBuy
BBY 64.39 0.87
Bio-RadLab A BIO 251.71 -1.64
Biogen
BIIB 330.71 2.96
BioMarinPharm BMRN 88.66 1.28
Bioverativ BIVV 53.47 -0.02
BlackKnight BKI 45.40 0.30
BlackBerry BB 10.65 -0.01
s BlackRock BLK 512.55 -5.18
Blackstone BX 31.99 -0.06
BlockHR
HRB 27.31 -0.23
BlueBuffaloPet BUFF 31.96 -0.28
bluebirdbio BLUE184.90 -6.05
s Boeing
BA 291.84 1.90
BorgWarner BWA 52.32 -1.06
BostonProps BXP 126.37 0.19
BostonSci BSX 25.71 0.10
Braskem
BAK 26.86 -0.09
BrightHorizons BFAM 90.85 -0.42
BrighthouseFin BHF 59.37 -0.61
Bristol-Myers BMY 63.47 0.19
BritishAmTob BTI 67.36 0.06
Broadcom AVGO 262.03 3.33
BroadridgeFinl BR 89.48 0.10
s BrookfieldMgt BAM 44.01 0.19
s BrookfieldInfr BIP 44.65 0.60
Brown&Brown BRO 51.25 -0.41
Brown-Forman B BF.B 65.34 -0.11
Brown-Forman A BF.A 65.13 1.21
BuckeyePtrs BPL 48.86 0.39
Bunge
BG 66.22 -2.46
BurlingtonStrs BURL 110.34 0.72
CA
CA 33.36 -0.13
CBD Pao
CBD 22.30 -0.63
CBRE Group CBG 43.20 -0.13
CBS B
CBS 57.17 -0.80
CBS A
CBS.A 57.56 -0.65
CDK Global CDK 70.01 -0.17
CDW
CDW 69.60 -0.59
CF Industries CF 41.26 0.66
CGI Group GIB 53.21 0.42
CH Robinson CHRW 87.77 -0.23
CIT Group CIT 50.32 -1.19
CME Group CME 151.61 -1.42
CMS Energy CMS 49.25 0.08
CNA Fin
CNA 52.94 -0.31
CNOOC
CEO 141.44 2.03
CRH
CRH 34.74 0.01
s CSX
CSX 57.69 0.71
CVS Health CVS 71.62 -1.23
CabotOil
COG 27.76 0.16
CadenceDesign CDNS 43.06 -0.23
CaesarsEnt CZR 12.60 0.10
CalAtlantic CAA 54.53 -0.22
CamdenProperty CPT 92.60 -0.90
CampbellSoup CPB 49.19 -0.57
CIBC
CM 93.53 0.10
CanNtlRlwy CNI 80.42 0.33
CanNaturalRes CNQ 33.83 -0.59
s CanPacRlwy CP 179.88 1.60
Canon
CAJ 38.67 0.02
CapitalOne COF 94.72 -1.49
CardinalHealth CAH 60.57 0.31
Carlisle
CSL 111.81 -0.09
Carlyle
CG 22.50 0.20
CarMax
KMX 67.47 0.61
Carnival
CCL 65.41 -1.14
Carnival
CUK 65.32 -0.94
s Caterpillar CAT 148.57 5.15
Cavium
CAVM 84.65 -1.10
CboeGlobalMkts CBOE 126.28 -1.34
Celanese A CE 108.31 1.34
Celgene
CELG 108.20 -0.84
Cemex
CX
7.56 0.06
CenovusEnergy CVE 9.29 -0.10
Centene
CNC 101.19 0.33
CenterPointEner CNP 28.40 0.02
CentraisElBras EBR 5.50 -0.23
CenturyLink CTL 16.75 1.05
Cerner
CERN 69.66 -0.70
CharterComms CHTR 329.00 -0.99
CheckPoint CHKP 106.43 1.00
Chemours CC 47.51 -0.56
CheniereEnergy LNG 48.48 0.63
CheniereEnerPtrs CQP 28.39 -0.11
CheniereEnHldgs CQH 27.38 0.37
Chevron
CVX 119.93 0.25
ChinaEastrnAir CEA 30.88 1.27
ChinaLifeIns LFC 15.78 0.08
ChinaLodging HTHT 118.78 -0.40
ChinaMobile CHL 49.16 0.22
ChinaPetrol SNP 71.63 0.80
ChinaSoAirlines ZNH 48.00 1.77
ChinaTelecom CHA 48.70 0.66
ChinaUnicom CHU 13.83 0.38
Chipotle
CMG 319.70 1.32
Chubb
CB 148.44 -2.06
ChunghwaTel CHT 35.11 0.13
Church&Dwight CHD 48.13 -0.26
Cigna
CI 207.92 -0.56
CimarexEnergy XEC 113.28 -0.29
CincinnatiFin CINF 73.68 -0.84
Cintas
CTAS 157.29 0.10
s CiscoSystems CSCO 38.15 0.24
Citigroup
C
75.14 -1.01
CitizensFin CFG 41.34 -0.58
CitrixSystems CTXS 87.15 -0.07
s Clorox
CLX 146.61 1.46
Coca-Cola KO 45.90 0.61
Coca-Cola Euro CCE 38.93 -0.26
Coca-Cola Femsa KOF 71.52 3.34
Cognex
CGNX 62.66 -0.75
CognizantTech CTSH 71.19 -0.26
Coherent
COHR 290.80 4.00
ColgatePalm CL 73.35 0.86
ColonyNorthStar CLNS 12.26 -0.02
Comcast A CMCSA 38.58 -0.93
Comerica
CMA 84.81 -1.06
CommerceBcshrs CBSH 55.02 -0.34
CommScope COMM 38.71 -0.06
Net
Sym Close Chg
Stock
SABESP
SBS 10.03
ConagraBrands CAG 37.34
ConchoRscs CXO 138.29
ConocoPhillips COP 51.68
ConEd
ED 87.98
ConstBrands B STZ.B219.68
ConstBrands A STZ 218.58
ContinentalRscs CLR 47.31
Cooper
COO 224.19
Copart
CPRT 43.91
Corning
GLW 32.29
CoStar
CSGP 291.16
Costco
COST 188.28
Coty
COTY 19.42
Credicorp
BAP 208.13
CreditAcceptance CACC 319.26
s CreditSuisse CS 17.51
CrownCastle CCI 111.37
CrownHoldings CCK 58.19
Ctrip.com CTRP 43.59
Cullen/Frost CFR 94.04
Cummins
CMI 169.58
-0.15
-0.21
-1.21
-0.28
-0.11
1.42
-1.43
-0.74
-5.47
0.21
-0.35
3.33
-0.02
0.80
-2.48
-6.99
0.02
0.48
-0.22
0.25
-0.96
0.36
D E F
DISH Network DISH 48.99
DTE Energy DTE 113.82
DXC Tech DXC 94.95
Danaher
DHR 94.15
Darden
DRI 87.60
s DaVita
DVA 71.30
s Deere
DE 151.95
DellTechs DVMT 80.19
DeltaAir
DAL 53.63
DentsplySirona XRAY 66.06
DeutscheBank DB 19.33
DevonEnergy DVN 38.12
Diageo
DEO 141.38
DiamondbkEner FANG 111.59
DigitalRealty DLR 115.31
DiscoverFinSvcs DFS 73.82
DiscovComm C DISCK 18.50
DiscovComm A DISCA 19.79
Disney
DIS 107.61
DolbyLab
DLB 61.41
DollarGeneral DG 91.64
DollarTree DLTR 105.59
DominionEner D
84.11
Domino's
DPZ 180.51
Donaldson DCI 48.55
DouglasEmmett DEI 40.85
Dover
DOV 96.18
DowDuPont DWDP 70.56
DrPepperSnap DPS 93.76
DrReddy'sLab RDY 36.07
DukeEnergy DUK 87.56
DukeRealty DRE 27.72
ENI
E
32.96
EOG Rscs EOG 99.94
EQT
EQT 56.81
EQT Midstream EQM 71.62
E*TRADE ETFC 48.70
EXACT Sci EXAS 51.88
EastWestBncp EWBC 59.27
EastmanChem EMN 93.08
Eaton
ETN 77.57
EatonVance EV 56.40
eBay
EBAY 37.40
Ecolab
ECL 135.00
s Ecopetrol
EC 12.84
EdisonInt
EIX 69.80
EdwardsLife EW 115.40
ElectronicArts EA 105.54
EmersonElec EMR 67.20
EnbridgeEnPtrs EEP 14.57
Enbridge
ENB 38.64
Encana
ECA 11.71
EnelAmericas ENIA 9.88
EnelGenChile EOCC 24.82
EnergyTransferEq ETE 16.50
EnergyTransfer ETP 17.27
Entergy
ETR 83.32
EnterpriseProd EPD 25.90
Equifax
EFX 117.40
Equinix
EQIX 451.28
EquityLife ELS 91.24
EquityResdntl EQR 65.63
Ericsson
ERIC 6.64
EssexProp ESS 247.98
s EsteeLauder EL 127.95
EverestRe RE 216.92
EversourceEner ES 65.08
Exelixis
EXEL 26.58
Exelon
EXC 41.13
Expedia
EXPE 118.55
ExpeditorsIntl EXPD 64.80
ExpressScripts ESRX 68.57
s ExtraSpaceSt EXR 87.60
ExxonMobil XOM 83.12
F5Networks FFIV 131.00
FMC
FMC 90.71
Facebook
FB 178.30
FactSet
FDS 202.02
Fastenal
FAST 53.11
FederalRealty FRT 131.37
s FedEx
FDX 242.02
Ferrari
RACE 105.80
FiatChrysler FCAU 17.75
FibriaCelulose FBR 14.26
FidNatlFin FNF 39.37
FidNatlInfo FIS 94.26
FifthThirdBncp FITB 29.94
58.com
WUBA 69.42
FirstAmerFin FAF 55.57
FirstData
FDC 16.57
FirstRepBank FRC 88.81
FirstSolar FSLR 68.48
FirstEnergy FE 32.27
Fiserv
FISV 130.81
s FleetCorTech FLT 189.73
Flex
FLEX 17.87
FlirSystems FLIR 47.38
Fluor
FLR 50.03
FomentoEconMex FMX 96.52
FordMotor F
12.63
ForestCIty A FCE.A 24.23
s Fortinet
FTNT 42.65
Fortis
FTS 36.83
Fortive
FTV 72.41
FortBrandsHome FBHS 67.32
Franco-Nevada FNV 77.09
FranklinRscs BEN 43.69
J K L
Fund
Data provided by
Wednesday, December 13, 2017
Net YTD
Net YTD
NAV Chg % Ret Fund
NAV Chg % Ret Fund
+0.06 32.3
+0.04
+0.03
+0.03
+0.04
+0.19
+0.19
+0.15
+0.01
+0.05
-0.02
+0.02
+0.06
+0.08
+0.10
+0.19
+0.10
+0.03
-0.04
+0.03
+0.03
21.0
17.2
14.8
3.4
13.9
23.2
29.1
22.0
24.8
6.5
18.5
12.6
28.1
33.7
29.9
24.2
5.2
19.3
4.3
4.7
... 12.8
-0.09 16.4
+0.01 13.1
-0.01 7.8
... 4.5
Bridge Builder Trust
10.20 +0.03
CoreBond
Dimensional Fds
11.02 +0.01
5GlbFxdInc
30.18 +0.24
EmgMktVa
EmMktCorEq 22.39 +0.10
IntlCoreEq
14.36 +0.05
20.26 +0.05
IntlVal
21.63 +0.11
IntSmCo
23.43 +0.09
IntSmVa
22.82
...
US CoreEq1
US CoreEq2 21.64 -0.01
US Small
37.07 +0.12
US SmCpVal 39.28 +0.02
25.67
...
US TgdVal
40.46 -0.17
USLgVa
Dodge & Cox
111.54 -0.38
Balanced
14.18 -0.04
GblStock
Income
13.88 +0.02
Intl Stk
46.42 -0.01
209.01 -1.20
Stock
DoubleLine Funds
10.66 +0.02
TotRetBdI
Edgewood Growth Instituti
EdgewoodGrInst 29.93 -0.05
Federated Instl
NA
...
StraValDivIS
Fidelity
93.48 -0.04
500IdxInst
500IdxInstPrem 93.48 -0.04
500IdxPrem 93.47 -0.04
Net
Sym Close Chg
Stock
Net
Sym Close Chg
Stock
-0.26 PNC Fin
PNC 143.83 -2.02 RegencyCtrs REG 68.76 0.17 SnapOn
SNA 170.28 -0.50
0.61 POSCO
PKX 77.18 1.07 RegenPharm REGN 386.67 4.95 SOQUIMICH SQM 53.70 1.74
0.05 PPG Ind
PPG 116.25 0.36 s RegionsFin RF 17.08 -0.23 Sony
SNE 44.65 0.02
0.75 PPL
RGA 157.71 -2.65 Southern
PPL 33.87 -0.17 ReinsGrp
SO 51.68 0.49
-0.07 PTC
RelianceSteel
RS
83.98
0.30
PTC 60.80 0.25
SoCopper SCCO 43.23 0.95
-2.32 PVH
PVH 132.61 -0.33 RepublicSvcs RSG 65.14 0.34 SouthwestAir LUV 63.14 -0.29
-0.05 Paccar
RMD 85.01 -0.83 SpectraEnerPtrs SEP 42.05 -0.32
PCAR 70.10 -0.61 ResMed
-0.08 PackagingCpAm PKG 116.98 0.02 RestaurantBrands QSR 61.54 0.54 SpectrumBrands SPB 111.00 0.22
-0.32 PacWestBancorp PACW 48.05 -0.60 RioTinto
RIO 48.60 0.90 s SpiritAeroSys SPR 84.67 0.08
-0.71 PaloAltoNtwks PANW 144.87 1.38 RobertHalf RHI 54.35 -0.01 Splunk
SPLK 80.44 0.27
-0.29 ParkHotels PK 28.32 0.04 Rockwell
ROK 191.46 0.71 Sprint
S
5.69 0.01
-0.60 s ParkerHannifin PH 194.71 2.85 RockwellCollins COL 134.21 -0.31 Square
SQ 36.19 -1.89
-0.08 ParsleyEnergy PE 26.71 0.05 RogersComm B RCI 50.74 0.35 StanleyBlackDck SWK 166.05 0.10
-0.14 Paychex
ROL 45.79 0.49 Starbucks SBUX 59.49 0.22
PAYX 68.82 0.11 Rollins
-0.36 PayPal
PYPL 74.09 0.47 RoperTech ROP 255.90 0.48 s StateStreet STT 99.18 1.00
-0.30 Pearson
PSO 10.00 0.08 RossStores ROST 76.97 0.56 Statoil
STO 20.55 -0.22
0.03 PembinaPipeline PBA 35.01 -0.03 RoyalBkCanada RY 79.59 0.24 s SteelDynamics STLD 41.18 0.54
0.03 Pentair
PNR 69.64 -0.04 RoyalBkScotland RBS 7.60 0.01 Stericycle SRCL 66.04 -1.26
0.12 People'sUtdFin PBCT 18.67 -0.07 RoyalCaribbean RCL 121.69 -2.14 Steris
STE 87.93 0.03
-0.02 PepsiCo
PEP 117.80 0.40 RoyalDutchA RDS.A 64.97 0.47 STMicroelec STM 22.04 0.34
-0.53 PerkinElmer PKI 71.31 0.19 RoyalDutchB RDS.B 66.49 0.29 Stryker
SYK 153.31 -0.36
-0.51 Perrigo
RYAAY 115.78 0.85 s SumitomoMits SMFG 8.68 0.09
PRGO 86.02 0.10 Ryanair
0.05 PetroChina PTR 69.48 2.45 SAP
SAP 112.90 0.23 s SunComms SUI 95.06 -0.39
0.18 PetroleoBrasil PBR 9.63 -0.31 S&P Global SPGI 169.01 -3.56 SunLifeFinancial SLF 40.65 -0.17
-0.49 PetroleoBrasilA PBR.A 9.19 -0.30 SBA Comm SBAC 165.43 -0.24 SuncorEnergy SU 34.30 -0.58
-0.48 Pfizer
PFE 36.64 0.06 s SEI Investments SEIC 70.96 -0.16 s SunTrustBanks STI 64.57 -0.97
-0.26 PhilipMorris PM 108.24 0.94 Sina
SINA 99.63 1.43 Symantec SYMC 28.63 -0.29
1.18 s Phillips66
SHI 56.82 0.02 SynchronyFin SYF 36.64 -0.72
PSX 99.99 0.92 SINOPEC
0.55 PilgrimPride PPC 35.01 -0.54 s SK Telecom SKM 27.94 0.63 Syngenta
SYT 92.43 0.02
-1.72 PinnacleFoods PF 56.21 -0.49 SLGreenRealty SLG 102.90 -0.12 Synopsys
SNPS 88.25 0.67
-0.08 PinnacleWest PNW 89.30 0.18 SS&C Tech SSNC 41.49 -0.03 SynovusFin SNV 48.09 -0.39
-0.13 PioneerNatRscs PXD 157.06 -1.93 s SVB Fin
SIVB 231.29 -3.61 Sysco
SYY 61.62 -0.22
-0.23 PlainsAllAmPipe PAA 20.22 -0.13 SageTherap SAGE 164.65 4.21
0.02 PlainsGP
PAGP 21.15 0.07 Salesforce.com CRM 103.94 0.27
1.90 PolarisIndustries PII 129.65 1.69 Sanofi
SNY 43.92 -0.04
TAL Education TAL 28.99 -0.35
-0.42 Potash
POT 19.97 0.16 SantanderCons SC 18.32 -0.10
0.45 Praxair
SSL 31.65 0.55 TD Ameritrade AMTD 51.46 -1.23
PX 151.27 -0.07 Sasol
2.70 Priceline
SCG 42.53 -0.26 TE Connectivity TEL 95.27 -0.38
PCLN 1742.61 18.89 Scana
TU 37.90 0.25
0.61 PrincipalFin PFG 70.25 -0.53 Schlumberger SLB 63.30 -0.88 Telus
TX 29.79 0.30
-0.12 Procter&Gamble PG 90.88 1.03 SchwabC
SCHW 50.33 -1.23 Ternium
TSU 18.52 0.24
0.51 s Progressive PGR 55.86 0.71 ScottsMiracleGro SMG 102.46 -0.24 TIM Part
TJX
TJX 73.90 0.28
ScrippsNetworks
SNI
81.56
-0.10
Prologis
PLD 65.76 -0.41
T-MobileUS
TMUS 63.83 0.35
STX 42.08 -0.04
PrudentialFin PRU 113.95 -2.44 Seagate
TRowePrice TROW 101.90 -0.17
SealedAir
SEE
48.25
0.54
M&T Bank MTB 171.02 -1.47 Prudential PUK 48.98 0.21
SeattleGenetics SGEN 55.71 1.10 TaiwanSemi TSM 39.29 -0.01
MGM Resorts MGM 33.16 0.45 PublicServiceEnt PEG 52.18 0.17
SemicondctrMfg SMI 7.13 0.22 TakeTwoSoftware TTWO 107.74 0.12
MPLX
MPLX 37.60 0.27 PublicStorage PSA 212.56 0.84
TPR 42.27 0.76
SempraEnergy SRE 115.24 0.55 Tapestry
MSCI
MSCI 127.29 -0.71 PulteGroup PHM 33.32 -0.37
TargaResources TRGP 46.66 0.26
s
QGEN 32.05 0.38 SensataTech ST 52.42 0.76
Macerich
MAC 66.77 0.30 Qiagen
Target
TGT 62.67 1.65
QRVO 67.29 -0.40 ServiceCorp SCI 37.44 -0.56
Macy's
M
25.83 0.14 Qorvo
TataMotors TTM 31.24 -0.27
s
MagellanMid MMP 68.61 0.20 Qualcomm QCOM 64.90 0.04 ServiceMaster SERV 50.34 0.62
TechnipFMC FTI 28.61 -0.16
MagnaIntl MGA 55.82 -0.36 QuantaServices PWR 38.29 -0.83 ServiceNow NOW 123.37 2.36
TeckRscsB TECK 23.91 0.49
s
Manpower MAN 123.97 -1.67 QuestDiag DGX 97.14 0.13 ShawComm B SJR 23.34 0.17
SherwinWilliams
SHW
405.45 -1.57 s TelecomArgentina TEO 38.48 0.77
ManulifeFin MFC 20.81 -0.06
8.63 -0.25
ShinhanFin SHG 44.14 0.18 TelecomItalia TI
MarathonOil MRO 15.20 0.02
Shire
SHPG 147.31 -2.10 TelecomItalia A TI.A 7.24 -0.25
MarathonPetrol MPC 64.15 -0.34
RELX
RENX 22.91 0.24 Shopify
SHOP
103.21 1.81 TeledyneTech TDY 183.23 4.84
Markel
MKL1120.54 -1.15
RELX
RELX 23.54 0.24 SignatureBank SBNY 134.83 -1.66 Teleflex
TFX 251.91 2.05
MarketAxess MKTX 196.25 -0.96
RPM
RPM 52.64
... SimonProperty SPG 165.83 -0.52 TelefonicaBras VIV 15.38 -0.02
Marriott
MAR 128.47 -0.29
RSP Permian RSPP 36.99 -0.10 SiriusXM
SIRI 5.69
... Telefonica TEF 9.81 0.03
Marsh&McLen MMC 83.40 -1.25
RalphLauren RL 96.22 -3.92 s SkechersUSA SKX 36.70 0.39 TelekmIndonesia TLK 31.20 0.57
MartinMarietta MLM 208.01 0.76
RandgoldRscs GOLD 92.44 1.97 Skyworks SWKS 95.86 -0.61 Tenaris
TS 31.10 0.05
MarvellTech MRVL 21.83 -0.36
RaymondJames RJF 87.86 -1.67 SmithAO
TER 40.83 -0.12
AOS 60.97 -0.09 Teradyne
Masco
MAS 42.02 -0.17
Raytheon RTN 188.65 1.76 Smith&Nephew SNN 35.40 -0.13 Tesla
TSLA 339.03 -2.00
Mastercard MA 151.69 -0.81
RealtyIncome O
56.87 1.13 Smucker
SJM
118.15 0.20 TevaPharm TEVA 15.70 -0.82
MatchGroup MTCH 28.60 0.23
RedHat
RHT 126.49 0.74 Snap
SNAP
15.96 0.03 TexasInstruments TXN 98.86 0.43
MaximIntProducts MXIM 51.19 -0.26
McCormickVtg MKC.V 101.00 0.21
McCormick MKC 100.96 -0.11
McDonalds MCD 173.55 1.32
McKesson MCK 155.21 0.66
Medtronic MDT 81.92 -0.08
MelcoResorts MLCO 25.86 -0.26
MercadoLibre MELI 318.94 23.82 The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE
MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in
Merck
MRK 56.91 -0.16
the latest session. % CHG-Daily percentage change from the previous trading session.
MetLife
MET 52.84 -0.83
MettlerToledo MTD 626.39 1.38
Wednesday, December 13, 2017
MichaelKors KORS 61.10 -0.02
52-Wk %
52-Wk %
52-Wk %
MicroFocus MFGP 33.15 0.23
Stock
Sym Hi/Lo Chg Stock
Sym Hi/Lo Chg Stock
Sym Hi/Lo Chg
MicrochipTech MCHP 86.40 0.56
12.88 1.7 Markel
Ecopetrol
EC
MKL 1133.99 -0.1
MicronTech MU 42.05 0.19
34.03 0.9 Maximus
EldoradoResorts ERI
MMS 71.64 -0.5
Microsemi MSCC 50.84 0.04
46.34 1.3 Medifast
73.83 1.8
EmergentBiosol EBS
MED
Microsoft MSFT 85.35 -0.23 AbbVie
ABBV 98.87 1.1
MidAmApt MAA 102.57 -1.31 AdtalemGlbEduc ATGE 45.48 0.2 EnantaPharma ENTA 54.83 12.0 MercadoLibre MELI 321.54 8.1
26.15 5.7
EntellusMedical ENTL 24.88 0.1 MesabiTrust
MSB
Middleby
MIDD 128.51 0.98 Aegon
6.26 0.2
AEG
128.57 2.4 Methanex
EsteeLauder
EL
MEOH 58.25 2.4
MitsubishiUFJ MTU 7.28 0.06 Agrium
AGU 113.25 0.9
51.30 -7.7
ETSY 20.45 -0.2 MetropolitanBk MCB
MizuhoFin MFG 3.68
... AlexandriaRlEst ARE 132.22 -0.2 Etsy
7.34 0.8
EvoquaWater AQUA 23.90 -1.4 MitsubishiUFJ MTU
MobileTeleSys MBT 9.10 0.23 AllscriptsHlthcr MDRX 14.65 0.6
88.56 -0.3 MonsterBev
ExtraSpaceSt EXR
MNST 63.62 1.0
MohawkInds MHK 275.51 0.17 Allstate
104.18 -0.2
ALL
54.25 -1.2
FSB Bancorp FSBC 17.00 0.2 MorganStanley MS
MolsonCoors B TAP 79.50 -0.65 AllyFinancial
29.34 -1.6
ALLY
35.05 0.9 Morningstar
FederatedInvest FII
MORN 97.29 0.4
29.09 3.5 FedEx
MolsonCoors A TAP.A 82.00 1.00 Alteryx
AYX
9.90 -0.5
FDX 243.48 1.1 MosaicAcqnA MOSC
14.50 2.0 FleetCorTech
AmRltyInv
ARL
Mondelez MDLZ 42.94 0.06
192.51 0.2 NICE
89.86 1.4
FLT
NICE
Monsanto MON 118.09 0.43 AndinaAcqnIIRt ANDAR 1.34 0.8 Fortinet
FTNT 43.08 1.1 NektarTherap NKTR 56.87 3.2
MonsterBev MNST 63.51 0.60 ApolloMedical AMEH 24.75 32.0 FreseniusMed FMS 52.38 0.5 NewResidInvt NRZ
18.18 ...
31.98 0.5 GTT Comm
Moody's
MCO 150.17 -2.40 ArcelorMittal MT
41.55 3.4 NewtekBusSvcs NEWT 19.30 0.1
GTT
20.80 -0.8 Gap
MorganStanley MS 53.18 -0.67 AtlasFinancial AFH
64.46 3.4
34.41 0.9 Nike
GPS
NKE
43.32 2.7 GasLogPfdA
CAR
Mosaic
MOS 24.69 -0.13 AvisBudget
GLOGpA 26.99 0.2 NorfolkSouthern NSC 143.35 0.3
24.01 3.4 GasLog
51.70 2.4
GLOG 20.00 2.8 NortelInversora NTL
MotorolaSol MSI 93.94 0.57 BBVABancoFr BFR
49.06 0.6 GeneralCable
BCE
30.15 0.8 NorthropGrum NOC 311.08 0.4
BGC
Mylan
MYL 39.53 0.24 BCE
BarracudaNtwks CUDA 27.95 0.8 GlMedREIT PfdA GMREpA 25.82 0.1 NorwoodFin
35.72 3.8
NWFL
NRG Energy NRG 28.15 -0.55
64.71 1.4 GolarLNG PfdA GMLPP 25.54 0.4 NovoNordisk
BestBuy
BBY
53.48 0.1
NVO
NTTDoCoMo DCM 25.51 0.13
518.88 -1.0 GoldmanSachs GS
BlackRock
BLK
260.50
-0.8
18.93 -0.2
OasisMidstream
OMP
NVR
NVR 3370.00 1.03
BobEvansFarms BOBE 78.33 0.6 GreatLakesDredge GLDD
33.94 3.7
5.70
9.2
PBF
Energy
PBF
NXP Semi NXPI 116.06 0.42 Boeing
295.85 0.7 GreeneCnty
BA
GCBC 33.50 3.4 PNC Fin Wt
PNC.WS 78.73 -1.4
Nasdaq
NDAQ 78.21 -1.06 BootBarn
BOOT 15.67 3.3 GrubHub
GRUB 71.66 2.3 PRA HealthSci PRAH 88.60 3.1
NationalGrid NGG 58.95 -0.18 BrookfieldMgt BAM 44.19 0.4
195.30 1.5
GpoFinGalicia GGAL 66.50 -0.3 ParkerHannifin PH
NatlOilwell NOV 32.59 -0.55 BrookfieldBusPtr BBU
34.14 3.9 GpoSupervielle SUPV 30.26 -0.7 PeabodyEnergy BTU
35.96 1.7
NatlRetailProp NNN 42.56 0.38 BrookfieldInfr BIP
45.17 1.4 H&E Equipment HEES 38.66 1.3 PennyMacFinS PFSI
22.20 1.4
NektarTherap NKTR 56.63 1.76 CONSOL Energy CEIX 30.68 -3.1 HSBC
HSBC 51.71 1.8 Phillips66
PSX 100.39 0.9
NetApp
NTAP 57.78 -0.02 CSX
58.35 1.2 HalozymeTherap HALO 20.91 6.3 PlumasBancorp PLBC
CSX
23.00 -0.5
Netease
NTES 357.80 13.28 CVR Energy
34.67 1.8 HercHoldings HRI
CVI
63.39 2.5 Presidio
PSDO 16.95 1.0
Netflix
NFLX 187.86 2.13 CanPacRlwy
180.90 0.9 HoeghLNG PfdA HMLPpA 26.25 0.1 Progressive
CP
56.23 1.3
PGR
113.50 0.3 HollyFrontier
CRI
Neurocrine NBIX 70.97 0.86 Carters
48.28 1.7 ProtoLabs
PRLB 99.85 3.6
HFC
149.05 3.6 HondaMotor
CAT
NewOrientalEduc EDU 88.20 -0.98 Caterpillar
23.85 6.5
33.79 0.6 QuanexBldg
NX
HMC
NY CmntyBcp NYCB 13.05 -0.18 CiscoSystems CSCO 38.37 0.6 HoulihanLokey HLI
26.68 0.7
46.30 ... RBB Bancorp RBB
147.38 1.0 ICU Medical
CLX
ICUI 219.15 0.8 RayonierAdvPfdA RYAMpA 139.31 0.4
NewellBrands NWL 31.40 0.24 Clorox
33.31 0.9
60.30 1.6 RedRockResorts RRR
NewfieldExpln NFX 29.07 -1.17 CollectorsUniv CLCT 30.18 2.3 InterContinentl IHG
17.41 -1.3
18.50 0.8 RegionsFin
RF
IIN
NewmontMin NEM 35.75 1.16 ConcertPharm CNCE 26.94 2.2 Intricon
9.70 4.1 InvescoMtg
CZZ
9.55 2.8
18.47 1.5 ResoluteForest RFP
IVR
NewsCorp B NWS 16.50 -0.05 Cosan
6.79 62.8 IovanceBiotherap IOVA
CounterPath
CPAH
26.41 0.3
9.50
-2.2
RexfordIndPfdA
REXRpA
NewsCorp A NWSA 16.28 0.06
CRAY 24.35 6.4 JacobsEngg
13.41 1.8
69.35 -0.3 RosettaStone RST
JEC
NextEraEnergy NEE 156.47 -0.60 Cray
17.69 0.1 KB Fin
CreditSuisse
CS
71.92 -0.2
55.96 3.1 SEI Investments SEIC
KB
NielsenHoldings NLSN 36.95 -0.98
Crocs
CROX 11.46 1.8 KMG Chem
28.21 2.3
66.16 0.1 SK Telecom
SKM
KMG
Nike
NKE 64.30 2.13
Cutera
CUTR 48.95 3.2 Kennametal
48.91 2.2 SPX FLOW
FLOW 46.74 0.1
KMT
NiSource
NI
26.43 0.04
71.44 1.3 KeyTechnology KTEC 20.53 -0.2 SVB Fin
DaVita
DVA
SIVB 236.86 -1.5
NobleEnergy NBL 26.69 -0.16 DeckersOutdoor DECK 78.71 1.6 KeyCorp
70.53 1.2
20.15 -1.5 Saia
SAIA
KEY
Nokia
NOK 4.68 0.13 Deere
153.34 0.6 LPL Financial LPLA
DE
3.90 6.9
56.56 -1.0 SeaChange
SEAC
NomuraHoldings NMR 5.91
... DigitalPower
5.95 21.4 LRAD
DPW
52.64 1.5
2.49 -3.3 SensataTech
ST
LRAD
Nordson
NDSN126.91 2.69 DigitalTurbine APPS
1.98 2.8 Lannett
30.35 ... ServiceMaster SERV 51.10 1.2
LCI
Nordstrom JWN 46.27 0.53 DovaPharm
DOVA 31.87 4.7 LendingTree
23.44 0.7
TREE 326.50 4.1 ShawComm B SJR
NorfolkSouthern NSC 141.83 0.37 DraperOakwoodRt DOTAR 0.58 3.1 LifeStorage
5.18 9.0
91.75 ... SiebertFin
SIEB
LSI
NorthernTrust NTRS 97.48 -1.07 EPR PropPfdG EPRpG 24.80 0.1 MBFinPfdC
36.80 1.1
MBFIO 26.13 ... SkechersUSA SKX
NorthropGrum NOC 308.46 1.18 Ebix
78.53 1.4 MV Oil
3.00 15.6
7.35 7.5 SmithMicro
EBIX
SMSI
MVO
NorwegCruise NCLH 53.16 -0.49
Novartis
NVS 84.66 0.20
NovoNordisk NVO 53.39 0.07
Nucor
NUE 61.85 -0.10
NVIDIA
NVDA 186.18 -4.66
T U V
M N
R S
New Highs and Lows | WSJ.com/newhighs
4.2
2.2
27.8
30.9
25.4
23.7
26.4
23.9
19.8
17.6
10.3
5.5
7.8
17.0
11.5
19.1
4.4
21.8
16.6
3.8
34.8
NA
21.2
21.2
21.2
ExtMktIdxPrem r
IntlIdxPrem r
SAIUSLgCpIndxFd
TMktIdxF r
TMktIdxPrem
USBdIdxInstPrem
Net YTD
NAV Chg % Ret
64.09
43.79
14.33
77.38
77.36
11.61
Fidelity Advisor I
31.84
NwInsghtI
Fidelity Freedom
16.93
FF2020
FF2025
14.67
18.42
FF2030
Freedom2020 K 16.94
Freedom2025 K 14.67
Freedom2030 K 18.43
Freedom2035 K 15.50
Freedom2040 K 10.89
Fidelity Invest
23.65
Balanc
87.45
BluCh
122.28
Contra
122.19
ContraK
10.30
CpInc r
39.60
DivIntl
185.95
GroCo
185.92
GrowCoK
7.94
InvGB
InvGrBd
11.29
53.64
LowP r
LowPriStkK r 53.58
103.76
MagIn
+0.11
+0.19
...
...
-0.01
+0.03
16.8
24.1
21.2
20.4
20.4
3.5
+0.01 27.6
+0.03 14.8
+0.02 15.9
+0.03 18.6
+0.03 NS
+0.02 NS
+0.03 NS
+0.03 NS
+0.01 NS
+0.02
+0.19
+0.07
+0.08
...
+0.12
+0.20
+0.20
+0.02
+0.03
+0.12
+0.12
-0.07
16.1
35.6
32.1
32.2
11.1
25.3
35.9
36.1
3.9
4.3
18.7
18.8
25.5
Highs
Net
Sym Close Chg
Stock
Textron
TXT 54.62
ThermoFisherSci TMO 191.47
ThomsonReuters TRI 44.17
ThorIndustries THO 151.08
3M
MMM 239.11
Tiffany
TIF 96.10
TimeWarner TWX 90.06
Toll Bros
TOL 47.06
s Torchmark TMK 89.31
Toro
TTC 65.19
TorontoDomBk TD 56.42
Total
TOT 56.06
s TotalSystem TSS 76.50
ToyotaMotor TM 124.92
TractorSupply TSCO 67.92
TransCanada TRP 48.75
TransDigm TDG 272.60
TransUnion TRU 54.86
Travelers
TRV 133.56
Trimble
TRMB 40.51
s TurkcellIletism TKC 10.05
TurquoiseHill TRQ 3.02
21stCenturyFoxA FOXA 32.75
21stCenturyFoxB FOX 32.34
Twitter
TWTR 21.66
TylerTech TYL 181.28
TysonFoods TSN 82.70
UBS Group UBS 17.89
UDR
UDR 39.03
UGI
UGI 48.10
US Foods USFD 30.79
UltaBeauty ULTA 215.03
UltSoftware ULTI 213.74
UltraparPart UGP 21.90
Unilever
UN 57.47
Unilever
UL 56.36
s UnionPacific UNP 130.31
UnitedContinental UAL 63.03
UnitedMicro UMC 2.50
UPS B
UPS 118.40
UnitedRentals URI 163.81
US Bancorp USB 54.60
US Steel
X
32.84
UnitedTech UTX 124.30
UnitedTherap UTHR 136.29
UnitedHealth UNH 224.35
UnivDisplay OLED 169.15
UniversalHealthB UHS 113.88
UnumGroup UNM 54.94
VEON
VEON 3.92
VEREIT
VER 7.88
VF
VFC 73.06
s Visa
V
113.31
VailResorts MTN 220.78
Vale
VALE 10.98
s ValeantPharm VRX 22.05
ValeroEnergy VLO 87.45
Vantiv
VNTV 73.59
s VarianMed VAR 112.42
Vedanta
VEDL 17.96
VeevaSystems VEEV 55.92
Ventas
VTR 63.87
VeriSign
VRSN 113.78
VeriskAnalytics VRSK 94.41
Verizon
VZ 52.89
+0.13
+0.01
+0.13
+0.03
+0.04
+0.04
+0.03
First Eagle Funds
58.57 -2.50
GlbA
FPA Funds
35.35 -0.09
FPACres
FrankTemp/Frank Adv
2.35
...
IncomeAdv
FrankTemp/Franklin A
7.47 +0.02
CA TF A p
2.37
...
IncomeA p
RisDv A p
60.41
...
FrankTemp/Franklin C
2.40
...
Income C t
FrankTemp/Temp A
12.11 -0.07
GlBond A p
27.40 -0.04
Growth A p
FrankTemp/Temp Adv
GlBondAdv p 12.06 -0.08
Harbor Funds
CapApInst
77.26 +0.30
70.72 +0.06
IntlInst r
Harding Loevner
NA
...
IntlEq
Invesco Funds A
10.89 -0.66
EqIncA
John Hancock Class 1
LSBalncd
16.16 +0.02
17.38 +0.01
LSGwth
John Hancock Instl
DispValMCI
24.54 -0.10
JPMorgan Funds
NA
...
MdCpVal L
JPMorgan R Class
NA
...
CoreBond
Lazard Instl
EmgMktEq
19.51 +0.08
Loomis Sayles Fds
14.20 +0.03
LSBondI
Lord Abbett A
ShtDurIncmA p 4.26
...
Lord Abbett F
38.5
18.1
35.7
36.8
28.3
19.9
4.2
12.5
9.7
8.2
5.8
8.0
18.8
7.8
3.5
16.3
3.6
36.4
21.1
NA
10.2
14.5
18.2
14.3
NA
NA
22.9
7.4
2.3
VertxPharm VRTX 144.80
Viacom B VIAB 29.52
Viacom A VIA 34.15
VistraEnergy VST 17.45
VMware
VMW 121.87
Vodafone VOD 31.34
VornadoRealty VNO 77.42
VoyaFinancial VOYA 45.27
VulcanMatls VMC 123.11
W X Y Z
WABCO
WBC 143.66
WEC Energy WEC 67.91
W.P.Carey WPC 70.37
WPP
WPP 91.10
Wabtec
WAB 78.05
Wal-Mart WMT 97.76
WalgreensBoots WBA 71.72
WasteConnections WCN 70.04
WasteMgt WM 85.34
Waters
WAT 197.20
Watsco
WSO 168.35
Wayfair
W 75.83
Weibo
WB 103.53
WellCareHealth WCG 207.34
WellsFargo WFC 59.40
Welltower HCN 66.41
WestPharmSvcs WST 98.74
WestarEnergy WR 55.35
WestAllianceBcp WAL 57.30
WesternDigital WDC 83.63
WesternGasEquity WGP 36.78
WesternGasPtrs WES 47.65
WesternUnion WU 19.37
s WestlakeChem WLK 101.51
WestpacBanking WBK 24.06
WestRock WRK 64.30
Weyerhaeuser WY 35.76
WheatonPrecMet WPM 21.61
Whirlpool WHR 167.04
Williams
WMB 29.06
WilliamsPartners WPZ 37.73
WillisTowers WLTW 152.93
Wipro
WIT 5.34
WooriBank WF 44.11
Workday
WDAY 101.47
Wyndham WYN 111.80
s WynnResorts WYNN 164.85
XPO Logistics XPO 77.16
XcelEnergy XEL 50.83
Xerox
XRX 29.42
Xilinx
XLNX 68.03
Xylem
XYL 67.49
YPF
YPF 21.81
YY
YY 111.20
Yandex
YNDX 32.72
YumBrands YUM 82.19
YumChina YUMC 40.62
ZTO Express ZTO 14.98
s ZayoGroup ZAYO 37.07
Zillow C
Z
41.77
Zillow A
ZG 41.57
ZimmerBiomet ZBH 113.52
ZionsBancorp ZION 49.76
s Zoetis
ZTS 72.38
52-Wk %
Sym Hi/Lo Chg Stock
Stock
SolarisOilfield SOI
SpecialOppFdPfB SPEpB
SpiritAeroSys SPR
SpiritRealtyPfdA SRCpA
StateStreet
STT
SteelDynamics STLD
StemlineTherap STML
SumitomoMits SMFG
SunComms
SUI
SunTrustBanksWtB STI.WS.B
SunTrustBanks STI
TelecomArgentina TEO
Teradata
TDC
Torchmark
TMK
TotalSystem
TSS
TrinityIndustries TRN
TurkcellIletism TKC
Unifirst
UNF
UnionPacific
UNP
UTStarcom
UTSI
Visa
V
ValeantPharm VRX
VarexImaging VREX
VarianMed
VAR
Verso
VRS
WattsWater
WTS
WernerEnterprises WERN
WestlakeChem WLK
Wiley B
JW.B
Wiley A
JW.A
WillScot
WSC
WillScotWt
WSCWW
Wingstop
WING
Winnebago
WGO
WW Ent
WWE
WynnResorts WYNN
XOMA
XOMA
ZayoGroup
ZAYO
Zoetis
ZTS
19.55
26.20
85.77
26.40
100.90
41.27
16.00
8.74
96.08
21.95
66.11
38.58
39.13
90.35
77.56
38.25
10.08
169.58
132.39
6.51
114.37
22.81
39.08
114.09
12.89
75.95
39.15
102.21
64.26
64.50
12.40
1.38
43.25
57.20
32.10
166.70
34.44
37.18
72.99
1.1
1.6
0.1
0.4
1.0
1.3
2.0
1.0
-0.4
-4.1
-1.5
2.0
1.0
-0.5
-0.6
1.3
1.7
0.3
-0.3
3.4
-0.1
0.8
2.4
0.9
0.2
2.1
1.6
0.6
0.8
0.9
3.0
8.3
1.5
3.1
4.4
1.6
5.6
1.7
0.2
Lows
ACM Research ACMR
ADOMANI
ADOM
ANGI Homesvcs ANGI
Affimed
AFMD
AileronTherap ALRN
Alexander&Baldwin ALEX
Altimmune
ALT
AmeriHoldings AMRH
AmericanLorain ALN
AmShrHosp
AMS
Argan
AGX
Arsanis
ASNS
AsankoGold
AKG
AssuredGuaranty AGO
AtlanticAmerican AAME
BellatrixExplor BXE
BlackRockCapInvt BKCC
BlueCapReins BCRH
Boxlight
BOXL
Broadvision
BVSN
CedarRealty6.5%PfC CDRpC
5.51 -5.3
2.75 -4.2
10.43 0.5
1.15 -2.0
9.53 -1.4
28.50 0.7
1.51 3.7
1.73 -16.0
0.17 -1.0
2.45 -1.7
42.30 0.4
10.87 -10.3
0.43 -5.0
34.28 -3.1
3.00 1.6
1.44 2.7
6.44 ...
11.70 -0.8
5.78 ...
3.20 -10.7
24.16 -1.4
3.89
-0.07
0.20
-0.62
1.83
0.09
-0.29
-1.03
1.60
-1.36
0.25
0.53
0.27
1.32
1.06
-0.29
0.97
0.70
-0.30
-0.47
3.38
1.84
1.44
-0.93
0.29
-0.26
-0.30
-1.25
1.86
-0.53
-0.16
-0.13
0.63
0.22
0.36
0.13
0.73
0.53
-0.02
-0.19
-2.27
0.04
1.20
-1.02
-0.18
2.54
0.87
0.29
-0.32
0.35
-0.05
-0.22
4.89
-0.17
0.20
0.06
0.07
0.61
1.25
1.18
-0.02
-0.70
0.15
52-Wk %
Sym Hi/Lo Chg
Celgene Rt
CELGZ
CitigroupPfdAA CpP
Cohen
COHN
ContraVirPharm CTRV
CypressEnergy CELP
CytoriTherap CYTX
DuluthHoldings DLTH
FibrocellScience FCSC
ForwardPharma FWP
FourSeasonsEduc FEDU
Frontline
FRO
GeniusBrands GNUS
GrupoSimec
SIM
HugotonRoyalty HGT
ImmuneDesign IMDZ
Intellipharm
IPCI
Intersections INTX
JonesEnergy
JONE
KennedyWilson KW
KingswayFin
KFS
LevelBrands
LEVB
MaidenNts46 MHLA
MaidenHldg6.7%PfdD MHpD
MaidenHldgsPfdA MHpA
MatthewsIntl MATW
MedleyCapital MCC
MosaicAcqnA MOSC
MosaicAcqnWt MOSC.WS
Natuzzi
NTZ
Neovasc
NVCN
NightstarTherap NITE
NordicAmerTankers NAT
OceanPwrTech OPTT
OnTrackInnov OTIV
OpGen
OPGN
OrexigenTherap OREX
OxbridgeReWt OXBRW
ParkerDrilling PKD
PatriotTransport PATI
Pfenex
PFNX
PhaseRx
PZRX
Precipio
PRPO
Prothena
PRTA
RegionalHlthProp RHE
RexEnergy
REXX
SandRidgeMS SDT
SandRidgeMS II SDR
SeaspanNts2027 SSWA
SenesTech
SNES
SkylineMedical SKLN
TOP Ships
TOPS
The9
NCTY
TiVo
TIVO
TremontMortgage TRMT
TrovaGene
TROV
US Geothermal HTM
US NatGas
UNG
US12mthNtlGas UNL
UnivElectro
UEIC
Vivus
VVUS
WPCS Intl
WPCS
YogaWorks
YOGA
0.80 -17.4
26.00 -0.6
7.52 0.9
0.32 -3.6
5.73 -0.9
0.24 -4.6
15.37 -0.4
0.61 3.9
3.19 -3.3
8.35 -0.9
4.75 -2.6
2.50 -5.7
9.22 -1.6
1.30 -1.8
3.50 ...
0.70 -1.5
1.90 1.0
0.74 -3.1
17.85 ...
4.80 1.0
4.35 2.8
22.55 0.7
21.41 -0.5
24.34 -1.3
52.70 0.8
5.35 0.4
9.70 -0.5
1.10 -15.4
1.50 -2.6
0.61 -1.7
11.99 -2.7
2.65 -27.8
1.06 -4.0
0.93 -3.4
0.18 -9.8
1.26 -3.1
0.09 -37.5
0.87 1.5
17.13 -0.7
2.07 2.4
0.40 -21.3
1.06 -1.8
37.37 0.4
0.20 -1.4
1.27 -10.6
1.03 -1.9
1.01 -3.8
23.40 1.1
0.62 -9.5
0.99 -2.0
0.30 -10.8
0.66 -2.2
14.65 -7.5
14.40 0.2
0.45 -6.1
3.24 -1.2
5.29 ...
8.79 0.3
47.75 -0.3
0.55 3.6
1.02 1.9
2.22 2.2
Dividend announcements from December 13.
-0.16
-0.18
-0.94
-0.06
-0.07
-0.80
0.15
0.11
-0.34
-0.02
-0.40
0.22
0.72
-0.73
-0.34
0.83
Net YTD
NAV Chg % Ret Fund
OTC
109.79
23.30
Puritn
SrsEmrgMkt 21.31
SrsGroCoRetail 18.27
16.42
SrsIntlGrw
10.98
SrsIntlVal
10.68
TotalBond
0.05
1.98
-0.11
1.68
2.53
0.60
-0.59
-0.03
-0.46
0.60
-0.15
0.03
-0.50
0.67
0.08
0.17
2.60
-0.14
-0.79
-0.29
0.17
0.01
-1.35
-1.26
0.01
-0.22
0.03
0.03
-0.34
-0.22
0.27
0.16
0.49
-0.27
0.16
0.28
-0.39
-0.33
0.01
0.24
0.16
-0.90
-0.16
0.82
1.07
1.86
-0.35
1.44
-1.46
0.04
0.02
0.53
-0.15
2.35
-0.08
0.18
0.51
-1.20
0.97
-0.32
0.05
0.05
-0.59
-0.19
-0.30
Net
Sym Close Chg
Stock
Dividend Changes
O P Q
Fund
Top 250 mutual-funds listings based on total net assets for Nasdaq-published share classes.
NAV is net asset value. Percentage performance figures are total returns, assuming
reinvestment of all distributions and after subtracting annual expenses. Figures don’t reflect
sales charges (“loads”) or redemption fees. NET CHG is change in NAV from previous trading
day. YTD%RET is year-to-date return. f-Previous day’s quotation. p-Distribution costs apply,
12b-1. r-Redemption charge may apply. t-Footnotes p and r apply. NA-Not available due to
incomplete price, performance or cost data. NE-Not released by Lipper; data under review. NNFund not tracked. NS-Fund didn’t exist at start of period.
American Century Inv
46.16
Ultra
American Funds Cl A
32.47
AmcpA p
42.53
AMutlA p
BalA p
28.05
12.93
BondA p
64.06
CapIBA p
53.19
CapWGrA
57.06
EupacA p
FdInvA p
65.19
52.46
GwthA p
10.38
HI TrA p
ICAA p
42.45
23.87
IncoA p
N PerA p
45.27
48.08
NEcoA p
66.84
NwWrldA
SmCpA p
57.10
13.02
TxExA p
WshA p
47.04
Baird Funds
10.91
AggBdInst
CorBdInst
11.26
BlackRock Funds A
20.50
GlblAlloc p
BlackRock Funds Inst
22.71
EqtyDivd
GlblAlloc
20.64
7.81
HiYldBd
StratIncOpptyIns 9.94
Net
Sym Close Chg
Stock
LamResearch LRCX 181.31
LamarAdv LAMR 78.02
LambWeston LW 55.80
LasVegasSands LVS 70.83
Lazard
LAZ 50.79
Lear
LEA 174.03
Leggett&Platt LEG 46.28
Leidos
LDOS 64.06
Lennar A
LEN 61.11
Lennar B
LEN.B 48.58
LennoxIntl LII 206.39
LeucadiaNatl LUK 25.51
LibertyBroadbandA LBRDA 84.65
LibertyBroadbandC LBRDK 85.34
LibertyGlobal C LBTYK 30.77
LibertyGlobal A LBTYA 31.70
LibertyLiLAC A LILA 21.60
LibertyLiLAC C LILAK 21.28
LibertyQVC A QVCA 24.53
LibertyVenturesA LVNTA 56.94
LibertyFormOne C FWONK 35.21
LibertyFormOne A FWONA 33.55
LibertyBraves A BATRA 22.59
LibertyBraves C BATRK 22.74
LibertySirius C LSXMK 42.13
LibertySirius A LSXMA 42.31
LibertyProperty LPT 43.88
EliLilly
LLY 87.89
LincolnElectric LECO 91.44
LincolnNational LNC 75.85
LionsGate A LGF.A 31.09
LionsGate B LGF.B 29.37
LiveNationEnt LYV 42.69
LloydsBanking LYG 3.66
LockheedMartin LMT 317.79
Loews
L
49.90
LogitechIntl LOGI 33.45
LogMeIn
LOGM 119.20
Lowe's
LOW 85.60
lululemon LULU 74.19
LyondellBasell LYB 107.50
-0.64
-0.19
0.16
0.43
0.46
0.90
0.88
0.94
0.01
1.07
s
-0.05
-0.29
0.77
0.06
0.41
-1.27
0.18
0.14
0.18
0.11
0.41
-0.63
0.68
-0.10
0.04
0.28
s
-1.01
-0.23
0.18
0.77
0.43
-0.09
-0.11
-0.34
0.82
0.56
-1.14
1.66
s
-0.76
0.06
-0.19
-0.21
-0.04
0.15
0.22
1.22
s
-0.17
-2.12
s
0.53
0.08
0.27
-0.04
-0.01
0.31
0.17
0.55
0.06
0.17
-0.82
1.07
s
-0.18
-0.67
0.25
-1.17
3.00
-2.90
0.87
-0.26
JD 40.80 2.24
0.12 JD.com
-0.14 JPMorganChase JPM 105.51 -1.34
JackHenry
JKHY
116.27 -0.04
0.45
0.01 s JacobsEngg JEC 68.16 -0.23
-0.26 JamesHardie JHX 16.91 0.28
0.36 JanusHenderson JHG 36.57 -0.10
s
-4.49 JazzPharma JAZZ 140.63 0.08
JBLU 21.49 -0.10
0.56 JetBlue
J&J
JNJ
142.89
0.29
1.34
-2.02 JohnsonControls JCI 37.66 -0.59
0.15 JonesLang JLL 148.50 -1.26
0.87 JuniperNetworks JNPR 29.11 0.19
2.52 KAR Auction KAR 50.73 -0.37
KB 55.39 1.69 s
-0.85 s KB Fin
KKR 19.94 -0.17
-0.03 KKR
s
-0.16 KLA Tencor KLAC 103.87 0.81
KT 15.45 -0.05
-0.86 KT
0.02 KSCitySouthern KSU 110.96 0.66
K
65.83 -0.12 s
-0.51 Kellogg
KEY 19.70 -0.30
0.49 s KeyCorp
-0.54 KeysightTechs KEYS 41.82 -0.21
-0.16 KilroyRealty KRC 75.22 -0.22
-2.77 KimberlyClark KMB 117.39 0.99
... OGE Energy OGE 33.89
-0.43 KimcoRealty KIM 18.41
-0.39 KinderMorgan KMI 17.85 0.10 ONEOK
OKE 53.22
Knight-Swift
KNX
43.73
0.74
-0.39
OReillyAuto ORLY 245.92
KSS 50.72 0.43 OccidentalPetrol OXY 69.97
0.44 Kohl's
-0.28 KoninklijkePhil PHG 38.66 -0.07 OldDomFreight ODFL 129.00
0.48 KoreaElcPwr KEP 17.74 0.25 Omnicom
OMC 73.71
-0.40 KraftHeinz KHC 79.28 0.33 ON Semi
ON 19.51
KR 26.69 0.36 OpenText OTEX 32.71
2.22 Kroger
KYO 67.42 -0.24 Oracle
0.03 Kyocera
ORCL 50.05
-0.04 LATAMAirlines LTM 12.59 0.32 Orange
ORAN 17.40
LB 58.82 0.50 OrbitalATK OA 131.75
0.47 L Brands
0.30 LG Display LPL 13.58 -0.05 Orix
IX
85.04
LN 43.25 -0.27 Oshkosh
-0.11 LINE
OSK 89.10
LKQ 40.07 -0.52 OwensCorning OC 86.25
0.09 LKQ
LLL 193.97 -0.42 PG&E
1.55 L3 Tech
PCG 53.09
PHI 29.13
-0.46 LabCpAm LH 156.26 0.24 PLDT
Mutual Funds | WSJ.com/fundresearch
Explanatory Notes
-0.08
-0.58
0.08
0.30
0.15
-0.30
0.68
-0.02
0.45
-0.15
0.41
-0.13
-0.14
-0.15
0.53
-0.11
0.30
0.49
0.06
-0.78
0.21
0.70
-2.12
0.20
2.47
1.91
-0.17
0.26
1.58
1.50
0.06
-0.22
-0.31
0.22
1.14
-0.17
-1.27
-0.05
-0.13
0.89
-0.48
0.29
-0.01
0.52
-0.48
3.43
0.48
0.15
0.12
-0.89
0.89
0.54
-0.24
-1.31
-0.18
-0.25
0.81
0.11
1.23
0.21
2.06
0.13
-0.19
...
0.02
-1.16
1.60
0.63
-0.23
1.55
0.07
...
0.88
-0.17
-1.07
-0.21
-0.12
-0.21
0.08
0.57
-0.20
-0.15
1.15
-0.91
-0.06
1.91
-0.54
2.70
-0.02
0.75
-0.06
0.01
-0.99
-0.52
0.96
-2.83
0.78
-0.15
-0.32
0.63
0.59
0.02
0.22
0.54
0.05
-0.65
Net
Sym Close Chg
Stock
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
Net
Sym Close Chg
no
Stock
GGP
GGP 23.69
Gallagher AJG 64.21
Gaming&Leisure GLPI 36.00
s Gap
GPS 34.26
GardnerDenver GDI 31.83
Garmin
GRMN 60.83
Gartner
IT 121.33
Gazit-Globe GZT 10.08
GeneralDynamics GD 196.63
GeneralElec GE 17.76
GeneralMills GIS 56.47
GeneralMotors GM 41.40
Genpact
G
32.04
Gentex
GNTX 20.37
GenuineParts GPC 93.26
Gerdau
GGB 3.51
Gildan
GIL 32.10
GileadSciences GILD 76.58
GSK
GSK 35.58
GlobalPayments GPN 99.36
GoDaddy
GDDY 48.42
Goldcorp
GG 12.46
s GoldmanSachs GS 255.56
Goodyear GT 31.77
Graco
GGG 131.78
Grainger
GWW 224.30
GreatPlainsEner GXP 33.58
Grifols
GRFS 21.76
s GrubHub
GRUB 71.41
GpoAeroportuar PAC 105.91
GpoAvalAcc AVAL 8.37
s GpoFinGalicia GGAL 65.04
GpFinSantMex BSMX 7.54
GrupoTelevisa TV 18.94
HCA Healthcare HCA 87.59
HCP
HCP 26.97
HDFC Bank HDB 96.14
HD Supply HDS 38.60
HP
HPQ 20.85
s HSBC
HSBC 51.44
Halliburton HAL 44.76
Hanesbrands HBI 21.24
HarleyDavidson HOG 51.01
Harris
HRS 141.94
HartfordFinl HIG 55.55
Hasbro
HAS 95.45
HealthcareAmer HTA 31.28
Heico A
HEI.A 75.10
Heico
HEI 91.25
Helm&Payne HP 57.92
HenrySchein HSIC 68.70
Herbalife
HLF 70.55
Hershey
HSY 113.16
Hess
HES 44.10
HewlettPackard HPE 14.32
Hilton
HLT 76.75
s HollyFrontier HFC 48.06
Hologic
HOLX 43.68
HomeDepot HD 183.03
s HondaMotor HMC 33.73
Honeywell HON 155.80
HormelFoods HRL 37.12
DR Horton DHI 49.81
HostHotels HST 19.85
HuanengPower HNP 24.81
Hubbell
HUBB 129.33
Humana
HUM 256.24
JBHunt
JBHT 111.87
HuntingtonBcshs HBAN 14.58
HuntingIngalls HII 235.09
Huntsman HUN 31.79
HyattHotels H
70.75
IAC/InterActive IAC 120.01
ICICI Bank IBN 9.43
IdexxLab
IDXX 158.20
IHSMarkit INFO 44.99
ING Groep ING 18.31
Invesco
IVZ 36.96
IPG Photonics IPGP 205.06
IQVIA
IQV 102.22
IRSA Prop IRCP 55.30
IcahnEnterprises IEP 52.15
Icon
ICLR 113.87
IDEX
IEX 130.42
IllinoisToolWks ITW 163.82
Illumina
ILMN 214.55
ImperialOil IMO 30.01
Incyte
INCY 98.10
Infosys
INFY 15.89
Ingersoll-Rand IR
87.13
Ingredion
INGR 138.33
Intel
INTC 43.34
InteractiveBrkrs IBKR 60.89
ICE
ICE 70.48
s InterContinentl IHG 60.15
IBM
IBM 153.91
IntlFlavors IFF 153.04
IntlPaper
IP
56.48
Interpublic IPG 20.15
Intuit
INTU 156.48
IntuitiveSurgical ISRG 371.08
InvitatHomes INVH 23.70
IonisPharma IONS 53.57
IronMountain IRM 38.34
IsraelChemicals ICL
4.09
ItauUnibanco ITUB 12.57
n-
Wednesday, December 13, 2017
Net
Sym Close Chg
ly
.
How to Read the Stock Tables
ShtDurIncm
Company
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Company
Increased
Symbol
Amount
Yld % New/Old Frq
Payable /
Record
Foreign
AGNC Inv Pfd. Series C
Amgen
Franklin Resources
Realty Income
SEI Investments
STRATS Sers 2006-1 P&G
WD-40
AGNCN
AMGN
BEN
O
SEIC
GJR
WDFC
6.7
3.0
2.1
4.5
0.8
2.3
1.8
EARN
11.5
.4375 /.25764 Q
1.32 /1.15 Q
.23 /.20 Q
.2125 /.212 M
.30 /.28 SA
.0407 /.03866 M
.54 /.49 Q
Jan16 /Jan01
Mar08 /Feb15
Jan10 /Dec26
Jan12 /Jan02
Jan08 /Dec27
Dec15 /Dec14
Jan31 /Jan19
Autoliv
Enel Americas ADR
Nevsun Resources
Jan25 /Dec29
KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual;
S2:1: stock split and ratio; SO: spin-off.
1.9
1.0
1.8
ALV
ENIA
NSU
.60
.05
.01
Q
SA
Q
Mar08 /Feb22
/Jan19
Jan17 /Dec29
Special
EnviroStar
Marchex Cl B
.12
.50
EVI
MCHX
Jan09 /Dec26
Mar21 /Mar08
Reduced
Ellington Residential Mtg
Net YTD
NAV Chg % Ret Fund
4.26 +0.01
Metropolitan West
10.68 +0.03
TotRetBd
10.68 +0.03
TotRetBdI
TRBdPlan
10.05 +0.03
MFS Funds Class I
ValueI
42.00 -0.16
MFS Funds Instl
25.69 +0.13
IntlEq
Mutual Series
32.78 -0.14
GlbDiscA
Oakmark Funds Invest
34.61 -0.09
EqtyInc r
86.89 -0.17
Oakmark
29.12 +0.15
OakmrkInt
Old Westbury Fds
14.31 +0.03
LrgCpStr
Oppenheimer Y
41.57 +0.11
DevMktY
43.05 -0.23
IntGrowY
Parnassus Fds
42.86 +0.03
ParnEqFd
PIMCO Fds Instl
NA
...
AllAsset
NA
...
TotRt
PIMCO Funds A
NA
...
IncomeFd
PIMCO Funds D
NA
...
IncomeFd
PIMCO Funds Instl
IncomeFd
NA
...
PIMCO Funds P
NA
...
IncomeP
Price Funds
99.14 +0.16
BlChip
CapApp
30.23 -0.02
33.33 -2.83
EqInc
71.37 -0.42
EqIndex
Growth
71.31 +0.10
75.71 +0.47
HelSci
40.35 +0.11
InstlCapG
19.30 +0.02
IntlStk
15.30 +0.03
IntlValEq
MCapGro
93.46 -0.03
32.00 -0.08
MCapVal
56.44 +0.21
N Horiz
N Inc
9.51 +0.03
2.7 OverS SF r
3.2
3.5
3.6
17.2
26.8
9.0
13.8
19.9
28.3
18.2
30.8
25.2
16.5
NA
NA
NA
NA
NA
NA
36.5
15.4
16.1
21.0
33.9
28.1
38.0
26.2
19.4
24.0
10.1
30.3
4.1
.37 /.40
Net YTD
NAV Chg % Ret Fund
11.41 +0.02
23.51 +0.03
18.15 +0.02
26.77 +0.02
19.59 +0.02
28.16 +0.02
40.07 -0.14
PRIMECAP Odyssey Fds
37.67 +0.10
Growth r
Principal Investors
13.92 +0.01
DivIntlInst
Prudential Cl Z & I
NA
...
TRBdZ
Schwab Funds
S&P Sel
41.72 -0.02
TIAA/CREF Funds
19.54
...
EqIdxInst
IntlEqIdxInst 19.98 +0.08
Tweedy Browne Fds
28.69 +0.02
GblValue
VANGUARD ADMIRAL
246.82 -0.11
500Adml
BalAdml
34.79 +0.04
11.77 +0.02
CAITAdml
CapOpAdml r 160.08 +0.33
36.93 +0.16
EMAdmr
79.04 -0.02
EqIncAdml
97.55 +0.51
ExplrAdml
84.19 +0.15
ExtndAdml
GNMAAdml 10.48 +0.02
GrwthAdml
72.35 +0.10
HlthCareAdml r 90.88 +0.36
HYCorAdml r 5.92 -0.01
25.91 +0.04
InfProAd
95.41 +0.30
IntlGrAdml
ITBondAdml 11.41 +0.04
ITIGradeAdml 9.77 +0.01
LTGradeAdml 10.62 -0.10
MidCpAdml 190.36 -0.18
11.43 +0.03
MuHYAdml
MuIntAdml
14.12 +0.02
11.65
...
MuLTAdml
10.91 +0.01
MuLtdAdml
MuShtAdml 15.73
...
PrmcpAdml r 140.19 +0.37
REITAdml r 119.69 +0.04
SmCapAdml 70.26 +0.13
R2020
R2025
R2030
R2035
R2040
Value
Q
Net YTD
NAV Chg % Ret Fund
STBondAdml
STIGradeAdml
TotBdAdml
TotIntBdIdxAdm
TotIntlAdmIdx r
TotStAdml
TxMIn r
ValAdml
31.5 WdsrllAdml
WellsIAdml
26.5 WelltnAdml
WndsrAdml
25.8
15.2
17.1
18.8
20.3
21.3
19.1
NA
21.2
20.4
24.1
14.6
21.2
13.5
4.7
28.8
26.5
17.9
21.3
16.8
2.0
27.4
19.9
6.8
2.6
41.7
4.1
4.3
11.5
18.0
7.6
4.4
6.2
2.2
1.2
28.8
5.2
14.8
10.40
10.65
10.78
22.04
30.21
66.65
14.34
41.41
71.29
66.39
75.53
81.21
VANGUARD FDS
27.42
DivdGro
215.40
HlthCare r
INSTTRF2020 22.85
INSTTRF2025 23.16
INSTTRF2030 23.39
INSTTRF2035 23.62
INSTTRF2040 23.85
INSTTRF2045 24.01
40.06
IntlVal
LifeCon
20.10
LifeGro
33.78
+0.02
+0.01
+0.03
-0.01
+0.11
...
+0.05
-0.09
-0.26
+0.12
-0.08
-0.23
1.3
2.2
3.7
2.7
25.1
20.5
24.6
16.4
15.5
9.9
14.1
18.3
+0.06
+0.84
+0.04
+0.04
+0.04
+0.04
+0.04
+0.04
+0.12
+0.03
+0.06
18.8
19.8
13.5
15.2
16.7
18.1
19.6
20.2
26.2
10.6
18.2
Net YTD
NAV Chg % Ret Fund
LifeMod
PrmcpCor
SelValu r
STAR
STIGrade
TgtRe2015
TgtRe2020
TgtRe2025
TgtRe2030
TgtRe2035
TgtRe2040
TgtRe2045
TgtRe2050
TgtRetInc
TotIntBdIxInv
WellsI
Welltn
WndsrII
27.34 +0.04
27.80 +0.02
33.79 -0.07
27.66 +0.04
10.65 +0.01
16.11 +0.03
32.05 +0.05
18.83 +0.04
34.05 +0.05
20.95 +0.04
36.12 +0.05
22.71 +0.04
36.53 +0.06
13.70 +0.02
11.02 -0.01
27.40 +0.05
43.73 -0.05
40.16 -0.15
VANGUARD INDEX FDS
246.76 -0.11
500
207.77 +0.37
ExtndIstPl
56.76
...
SmValAdml
TotBd2
10.74 +0.03
TotIntl
18.06 +0.07
Net YTD
NAV Chg % Ret
TotSt
66.62
...
VANGUARD INSTL FDS
+0.04
+0.05
+0.09
+0.15
+0.10
+0.02
-0.11
-0.10
...
-0.04
-0.19
+0.13
+0.01
+0.03
+0.03
+0.03
-0.01
+0.47
+0.47
...
-0.09
3.6 Western Asset
NA
...
25.0 CorePlusBdI
14.3
25.3
17.4
17.6
2.1
11.0
13.4
15.2
16.6
18.1
19.6
20.2
20.2
8.2
2.6
9.9
14.0
15.4
34.80
BalInst
DevMktsIndInst 14.36
DevMktsInxInst 22.45
ExtndInst
84.19
GrwthInst
72.35
10.56
InPrSeIn
243.51
InstIdx
243.54
InstPlus
59.79
InstTStPlus
42.05
MidCpInst
207.40
MidCpIstPl
SmCapInst
70.26
STIGradeInst 10.65
10.78
TotBdInst
10.74
TotBdInst2
10.78
TotBdInstPl
TotIntBdIdxInst 33.07
TotIntlInstIdx r 120.83
21.1 TotItlInstPlId r 120.85
16.8 TotStInst
66.66
10.6 ValueInst
41.41
20.3
13.5
24.6
24.7
16.8
27.4
2.7
21.2
21.2
20.4
18.0
18.0
14.8
2.2
3.7
3.6
3.7
2.7
25.1
25.1
20.5
16.4
NA
IPO Scorecard
Performance of IPOs, most-recent listed first
Company SYMBOL
IPO date/Offer price
Denali Thera
DNLI Dec. 8/$18.00
GigCapital
GIG.U Dec. 8/$10.00
Luther Burbank
LBC Dec. 8/$10.75
CURO Grp Hldgs
CURO Dec. 7/$14.00
Odonate Thera
ODT Dec. 7/$24.00
% Chg From
Wed3s Offer 1st-day
close ($) price close
20.04
11.3
–6.6
9.99
–0.1
–0.1
12.01
11.7
2.2
13.82
–1.3
–2.7
23.35
–2.7
1.5
Company SYMBOL
IPO date/Offer price
% Chg From
Wed3s Offer 1st-day
close ($) price close
Quanterix
18.68
QTRX Dec. 7/$15.00
Leisure Acquisition
9.91
LACQU Dec. 1/$10.00
Regalwood Global Energy 10.00
RWGE.U Dec. 1/$10.00
RETO Eco-Solutions
8.45
RETO Nov. 29/$5.00
Big Rock Ptnrs Acquisition 10.23
BRPAU Nov. 20/$10.00
24.6
7.0
–0.9
–0.5
...
...
69.0 –20.1
2.3
2.2
Sources: WSJ Market Data Group; FactSet Research Systems
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
B10 | Thursday, December 14, 2017
MONEY & INVESTING
Cryptocurrency ETF Rush Is On
BY CHRIS DIETERICH
First Trust files
for bitcoin ETF
Rex Shares
and VanEck
refresh filings
How many U.S. dollars one bitcoin buys
The debut of bitcoin futures
trading this week is rejuvenating efforts to list the first exchange-traded fund linked to
the cryptocurrency.
A trio of fund companies in
recent days have refreshed
plans or filed for an ETF that
tracks bitcoin futures. A separate pair of U.S. ETFs are also
in registration, as is one in
Canada.
A futures-based ETF structure, analysts say, has a better
chance to win regulatory approval than previous structures designed to own bitcoin
directly. The Securities and
Exchange Commission denied
applications for such ETFs
earlier this year over concerns
of whether bitcoin trading is
sufficiently regulated.
Competition to launch the
first bitcoin ETF is intensifying after exchange operator
Cboe Global Markets Inc.
launched trading of bitcoin futures on Sunday. Cboe rival
CME Group Inc. is set to roll
out its competing bitcoin futures market next week.
A robust futures market
could ease concerns about the
potential for market manipulation. The SEC has set a prece-
10,000
VanEck
files for
bitcoin
ETF
5,000
ProShares
files for
bitcoin
ETF
Bitcoin futures
debut on Cboe
0
August
September
October
November
December
THE WALL STREET JOURNAL.
Source: CoinDesk
dent for approving commodity
ETFs only in assets that boast
“significant, well-established
and regulated” futures markets, the SEC said in a recent
filing.
The creation of a bitcoin
ETF would represent a major
development for the digital
currency, making it easier and
cheaper for prospective buyers
to purchase bitcoin. ETFs
trade intraday on equity exchanges and provide easy access to baskets of stocks,
bonds, commodities and other
assets.
Traders can buy bitcoin directly, via futures or through
trading vehicles that don’t offer the investor protections
that come with the approval of
the SEC.
First, the SEC needs to
greenlight these ETFs, and all
previous efforts to win over
regulators have failed. Officials have offered little clarity
about when—or even if—they
might OK a futures-based bitcoin ETF, and SEC Chairman
Jay Clayton this week expressed concern about all the
money pouring into this highrisk investment.
Two of these ETFs would
allow investors to bet on bitcoin’s decline, which might
hold wide appeal since many
think the digital currency is
due to fall after soaring in
2017.
First Trust Advisors LP, the
sixth-largest U.S. ETF company by assets, on Monday unveiled plans for a futuresbased ETF in a preliminary
prospectus filed with regulators. Van Eck Associates Corp.
and Rex Shares LLC last week
updated their registration documents for similar products.
Another firm, ProShare
Capital Management LLC,
filed for a pair of futuresbased bitcoin ETFs in September. Evolve Fund Group Inc.,
recently filed for a similar ETF
with Canadian securities regulators. Representatives for
each firm declined to comment on the ETFs in registration.
MICHAEL BUCHER/THE WALL STREET JOURNAL
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
BITCOIN
BitOoda founder and former commodities broker Tim Kelly says bitcoin trading is going to be like commodities trading in the 1980s.
n-
as much of an advantage.
Commodities revenue at
banks also has suffered. Earlier this year, Goldman Sachs
Group Inc. reported its worstever quarter for commodities
trading. The Wall Street Journal reported in October that
the bank is considering a new
trading operation dedicated to
cryptocurrencies.
Ivana Rouse, a lawyer at
Akin Gump Strauss Hauer &
Feld in Houston, typically advises hedge funds and privateequity firms, including commodity funds. But that part of
her business has slowed. Now
Ms. Rouse spends much of her
time setting up new cryptocur-
no
Continued from page B1
Asia. “These are investors that
won’t return calls for our excellent
commodity-trading
strategies. For crypto, they’re
calling us.”
Some critics worry that as
bitcoin creeps into the mainstream—with futures allowing
investors to make leveraged
bets—its volatility could destabilize the financial landscape.
Futures also could revolutionize bitcoin investing by
making it easier to trade,
speeding up the migration into
cryptocurrencies. Cboe Global
Markets Inc.’s bitcoin futures
contract started trading on
Sunday, with volatile price
swings triggering automatic
halts on the first day. CME
Group Inc., the world’s largest
futures exchange, plans to
start trading in its own rival
contract Sunday evening.
Traders hope the exuberance over bitcoin will usher in
an era like the 1980s and
1990s, when investing in commodities like oil and metals
took off, and investors with
specialized knowledge and a
high tolerance for risk could
produce blockbuster returns.
“They were really good at
taking educated guesses with
fragmented information. Anyone
trading in the cryptocurrency
markets has to do that same
thing,” said John D’Agostino, a
former New York Mercantile Exchange executive who sits on
the boards of some funds that
trade virtual currencies.
Now, in a world awash in
data, information doesn’t give
traders at commodity merchants and proprietary funds
Rex Shares
files for
bitcoin
ETF
A bitcoin ETF would likely
deliver millions of dollars in
management fees to the fund
company that establishes a
dominant trading vehicle.
A four-year push by Cameron and Tyler Winklevoss to
launch their Winklevoss Bitcoin Trust stalled in March
when the SEC denied the application, saying that bitcoin
trading is too opaque and vulnerable to potential market
manipulation, though the SEC
agreed to review that decision
in April.
That fund would have held
bitcoins directly, as opposed
to tracking futures on bitcoin.
A bitcoin ETF with a similar
structure, from SolidX Management LLC, also was denied.
“The challenge for a bitcoin
ETF that works in a traditional
way, like one that owns gold
for instance, is that bitcoin is
unregulated and decentralized,” said Dave Nadig, said
chief executive officer of
ETF.com, which is owned by
Cboe. “An alternate route is
one based on derivatives, on
futures.”
Bitcoin futures are regulated by the Commodity Futures Trading Commission.
Kathleen Moriarty, partner
at Chapman and Cutler LLP,
who played a hand in launching the SPDR Gold Shares ETF
among others, said that the
launch of bitcoin futures represents a new path for approval, but that the timeline
remains uncertain.
rency funds—fielding five or
six calls a month from aspiring
fund managers.
Commodity hedge-fund closures outnumbered launches for
the first time on record this
year in data going back to 2000,
according to data provider Eurekahedge. Eight new commodity hedge funds have launched,
compared with 130 in 2011.
Meanwhile, out of 171 cryptocurrency funds tracked by research firm Autonomous Next,
123 launched in 2017. While the
market is growing, the $2 billion in assets under management is still dwarfed by investments in traditional assets.
Brokers who execute trades
for a commission have seen
their roles shrink in recent
years amid heavier regulation
and the growing dominance of
electronic trading. But former
commodities broker Tim Kelly
sensed a comeback opportunity in bitcoin.
“It’s an unrepeatable opportunity—it’s going to be like
commodities trading back in
the 1980s,” Mr. Kelly said.
Mr. Kelly came out of retirement this year to launch
BitOoda Technologies LLC,
which is looking to broker
large blocks of bitcoin futures,
as well as physical cryptocurrency transactions.
Two oil-industry veterans
have signed on as strategic advisers. One is Jeff Frase, a former Goldman Sachs and JPMorgan head oil trader who
recently stepped down as cochief executive of Noble
Group, a struggling commodities trading house that has
agreed to sell its oil business
to rival Vitol. The other is
Todd O’Malley, a former executive at PBF Energy Inc. and
Gulf Oil LP. “In the oil world,
the proliferation of information has taken the advantage
out of the hands of a lot of
traders and muted the market,” Mr. O’Malley said. “The
edge is much harder to gain
every single day now.”
South Korea Seeks
Curbs on Trading
Korean won ($53,528) fine on
BTC Korea.Com Co., the Seoulbased operator of Bithumb,
South Korea’s largest cryptocurrency exchange, for compromising the personal information of
some 36,000 users when it was
hacked earlier this year.
In a statement, Bithumb
said it accepted the regulator’s
decision with a “heavy heart.”
It added that the hack had affected a staff member’s personal computer and not the
exchange’s internal system.
Millions of individual Asian
investors have played a crucial
role in fueling bitcoin’s rally
from just shy of $1,000 at the
beginning of the year to a high
of more than $17,000 this
week.
Under the government’s
newly proposed rules, exchanges with more than one
million users and 10 billion won
in revenue will be required to
certify themselves beginning
next year. Students up through
high school and foreigners who
are not residents of Korea will
be prohibited from creating accounts to trade cryptocurrencies in local exchanges.
—Eun-Young Jeong
and Steven Russolillo
Effective Wednesday, December 14, 2017, the WSJ U.S. Prime
Borrowing Benchmarks | WSJ.com/bonds rate will be 4.50%, the Federal Funds Discount Rate will be
2.00% and the Federal Funds Target Rate will be 1.25-1.50%
Money Rates
December 13, 2017
Key annual interest rates paid to borrow or lend money in U.S. and international markets. Rates below are a
guide to general levels but don’t always represent actual transactions.
Week
Latest ago
Inflation
Nov. index
level
Chg From (%)
Oct. '17 Nov. '16
U.S. consumer price index
246.669
253.492
All items
Core
0.002
–0.06
2.2
1.7
International rates
Latest
Week
ago
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.50
1.50
0.00
0.50
0.25
1.50
1.38
0.24
Overnight repurchase
1.10
U.S.
1.18
1.240 1.180 1.300 0.400
1.320 1.290 1.320 0.505
1.460 1.450 1.460 0.590
4 weeks
13 weeks
26 weeks
Secondary market
30-year mortgage yields
30 days
3.501 3.452 3.865 3.253
60 days
3.533 3.470 3.899 3.281
Other short-term rates
4.25 4.25 4.25 3.50
3.20 3.20 3.20 2.70
1.475 1.475 1.475 1.475
Policy Rates
Euro zone
Switzerland
Britain
Australia
Treasury bill auction
Fannie Mae
52-Week
High
Low
Prime rates
U.S.
Canada
Japan
—52-WEEK—
High Low
U.S. government rates
Latest
Week
ago
Week
Latest ago
Six month
One year
One month
Three month
Six month
One year
-0.417
-0.386
-0.316
-0.258
-0.402
-0.379
-0.315
-0.259
-0.376
-0.329
-0.226
-0.083
-0.417
-0.387
-0.322
-0.259
Euro interbank offered rate (Euribor)
One month
Three month
Six month
One year
-0.371
-0.329
-0.273
-0.191
Latest
-0.367
-0.326
-0.271
-0.191
Value
Traded
-0.366
-0.313
-0.216
-0.081
-0.375
-0.332
-0.276
-0.192
52-Week
High
Low
DTCC GCF Repo Index
3.00
3.00
3.00
2.25
Treasury
MBS
1.52
1.41
1.52
0.72
Libor
1.47703 1.40688 1.47703 0.70728
1.58849 1.52263 1.58849 0.97039
1.120
1.145
43.200 1.366 0.264
66.050 1.506 0.284
Open Implied
Settle Change Interest Rate
Commercial paper (AA financial)
One month
Three month
1.75575 1.71445 1.75575 1.29822
2.03856 1.98825 2.03856 1.65456
Euro Libor
52-Week
high
low
Call money
90 days
—52-WEEK—
High Low
DTCC GCF Repo Index Futures
Treasury Dec
Treasury Jan
Treasury Feb
98.685 -0.005 2507 1.315
98.565 unch. 1526 1.435
98.560 0.005 624 1.440
Discount
1.75
1.75
1.75
1.00
1.1700
1.3125
1.0500
1.1600
1.1700
1.2000
1.3125
1.1600
1.1700
1.1900
0.4300
0.5625
0.3000
0.4000
0.4200
Federal funds
Effective rate
High
Low
Bid
Offer
1.1700
1.3125
1.0500
1.1600
1.1700
Notes on data:
U.S. prime rate is the base rate on corporate loans posted by at least 70% of the 10 largest U.S. banks,
and is effective June 15, 2017. Other prime rates aren’t directly comparable; lending practices vary
widely by location; Discount rate is effective June 15, 2017. DTCC GCF Repo Index is Depository
Trust & Clearing Corp.'s weighted average for overnight trades in applicable CUSIPs. Value traded is in
billions of U.S. dollars. Federal-funds rates are Tullett Prebon rates as of 5:30 p.m. ET. Futures on the
DTCC GCF Repo Index are traded on NYSE Liffe US.
Sources: Federal Reserve; Bureau of Labor Statistics; DTCC; SIX Financial Information;
Tullett Prebon Information, Ltd.
South Korea’s government
is pushing ahead with new
rules to curtail the widespread
speculation on cryptocurrencies
that has swept the Asian nation this year, following an
emergency meeting of officials
and regulators Wednesday.
The proposed measures, released by the Office for Government Policy Coordination, range
from levying capital-gain taxes
on trading cryptocurrencies, to
restricting financial firms from
holding, acquiring and investing
in them. No timeline has been
set for when the measures
would be implemented.
South Korea has become a
hotbed for bitcoin trading in recent months. At one point last
week, the country accounted
for as much as one-quarter of
global bitcoin trading activity,
more than the U.S., according
to Coinhills, a data firm that
tracks digital currencies.
The meeting came after
South Korea’s communications
regulator said Tuesday that it
would levy a 58.5 million South
The Irony
Of Bitcoin
Wealth
The big
names in bitcoin get a lot
of airtime:
Former
hedge-fund
manager Mike Novogratz,
antivirus millionaire John
McAfee and the Winklevoss
twins are the public faces of
the cryptocurrency bubble.
Their bitcoin profits pale
into insignificance compared
with the riches bestowed on
Michael Poutre, at least on
paper. This week, the skyrocketing price of his unknown company made him a
paper billionaire richer than
any of them, and at Monday’s high of $3.9 billion,
worth more than 1980s junk
bond king Michael Milken or
movie mogul Steven Spielberg, according to the
Forbes 400 ranking.
Mr. Poutre holds one of
the few stocks to do better
than bitcoin this year, a company attempting to make
money out of cryptocurrencies. His ownership of onefifth of the Crypto Co., in
which he is CEO, briefly
made him one of the richest
people in America this week
as its market value leapt to
$12.6 billion, equal to the
381st biggest member of the
S&P 500.
For a company that only
started trading on the overthe-counter Pink Sheets market by a reverse takeover of
a sports-bra designer this
summer, and languished at 1
cent a share with no trading
at all until September, there
aren’t enough superlatives to
express how bizarre this is.
It is yet another sign of
the extraordinary popular
ly
.
Competition to launch
Planning for Futures
first fund is intense as Companies have been filing for exchange-traded funds linked to bitcoin
start of futures could futures months in advance of the cryptocurrency’s Cboe debut this week.
ease trading concern
$15,000
STREETWISE |
By James Mackintosh
Michael Poutre holds
one of the few stocks
to do better than
bitcoin this year.
delusion being created by
bitcoin and the rush for everything crypto. Those who
missed out on the 17-fold
rise in bitcoin this year are
piling into anything they can
find that is associated with
the cryptocurrency boom,
even when the price can
never possibly be justified by
future profits. Just like the
dot-com bubble, buyers don’t
care because they aim to sell
to a bigger fool.
Mr. Poutre’s newfound
wealth is only on paper, and
three-quarters of it vanished
as the share price crumbled
on Tuesday. He is realistic:
In a private deal, a fund he
controls sold $25,998 of
stock last week at $7 a
share, when the price quoted
on the Pink Sheets was between $18 and $24.
In some ways the leap in
Crypto Co.’s value is just an
artifact of being a deeply illiquid stock. It doesn’t take
much money to push up the
price, and with 80% of the
shares held by Mr. Poutre
and his three co-founders,
there has been little trading.
Yet it is also indicative of
the madness of the crowds
trying to buy something—
anything—bitcoin-related.
“It certainly seems to be a
reflection of the interest in
this space,” Mr. Poutre told
me. “One of the reasons we
went public was to give the
average investor access to
this space in a way all can
understand.”
Crypto Co. may be the
most extreme example, but
stocks with any connection
to bitcoin have been skyrocketing. Bitcoin futures are
part of the same trend.
There are two deep ironies in all this. The first is
that the limited supply of
bitcoin is hailed by its supporters as a way to avoid the
magical thinking of centralbank money-printing. The
second is that bitcoin was
created in 2009 to make
small online transactions
easy and remove the need to
use financial intermediaries,
but is so hard to use that it
has created a whole new set
of financial intermediaries.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
THE WALL STREET JOURNAL.
Thursday, December 14, 2017 | B11
* * * *
HEARD ON THE STREET
Email: heard@wsj.com
WSJ.com/Heard
FINANCIAL ANALYSIS & COMMENTARY
Fox-Disney Deal May Get Penalty
With viewers turning to
streaming video, sports have
come to dominate traditional
TV. In 2005, sports accounted for 14 of the 100 most
viewed broadcasts. In 2015, it
was 93 out of 100, according
to MoffettNathanson.
That is one reason behind
a potential deal between 21st
Century Fox and Disney,
which is expected to be announced Thursday. And it is
why regulators could frown
on such an agreement.
People involved with the
talks say that in addition to
Fox’s television and movie
studios and its FX and National Geographic cable networks, Disney also would acquire Fox’s 22 regional
sports networks. They are
worth more than one-third of
the total value of the expected $60 billion deal.
These networks are local
cable channels that have exclusive rights to hometown
games and are a major force
behind the escalating costs
of sports licensing rights.
Combined with Disney’s
ESPN and stakes in the three
leading college conference
Challenge Flag
Estimated enterprise value of Fox assets that Disney seeks
$71.4 billion
Total Enterprise Value
23.0
Regional Sports Networks
Film & TV Studio
15.0
International Cable Networks
14.2
FX & Nat Geo Cable Networks
11.0
Fox Stake in Sky
9.0
Fox Stake in Hulu
1.8
THE WALL STREET JOURNAL.
Source: MoffettNathanson
channels, the channels would
give Disney a dominant
sports portfolio. This could
draw the attention of regulators already challenging another big media deal: AT&T’s
acquisition of Time Warner.
The issue would be how
much more dominant Disney
would be than Fox is right
now, with its Fox Sports and
regional sports networks.
Sports channels already
have enormous leverage.
Subscribers won’t buy a ca-
ble package that excludes
their must-watch channels,
so sports channels have been
able to charge cable and satellite distributors steadily
rising prices for carrying
their networks. Disney’s
ESPN, which has 90 million
subscribers, bags nearly $8
billion a year in fee revenue.
As one of the few remaining spots that can be counted
on to attract large audiences,
sports channels take a big
cut of advertising revenue
OVERHEARD
too. Spending on ads for
sports rose 50% in the decade to 2015, even as advertising rates in the industry
stayed flat or declined.
The merger would give
Disney even more leverage
with distributors. “You can’t
run a pay-TV company with
consumers who like sports
without ESPN and Fox’s regional networks,” said Michael Nathanson of Moffett
Nathanson.
Disney also could run the
channels on an ESPN streaming service, which it plans to
launch next year. “As long as
sports have an important
place in viewing, the regional
sports networks could be leveraged far beyond what anybody thinks at this moment,”
said John Janedis of Jefferies
LLC.
Antitrust regulators have
typically focused on deals in
which consumers could be
hurt. It isn’t hard to imagine
pay-TV operators calling the
deal anticonsumer. If a FoxDisney merger runs afoul of
regulators, sports will likely
be their focus.
—Elizabeth Winkler
Hunting for presents,
hours of traveling, huge family gatherings. The winter holidays can be enough to drive
anyone up the wall.
In London, there is a cure
for that. For £18 ($24) you
can relieve all those stresses
and strains by putting on a
hard hat, grabbing a baseball
bat and spending 3½ minutes
bashing all hell out of a
Christmas tree and its decorations. Then, relax with a glass
of sparkling wine.
The Christmas-themed
“rage room” is the idea of
Meredith O’Shaughnessy, who
mainly organizes immersive
branding events for companies—everything from making
macarons for shoe designer
Manolo Blahnik at New York
fashion week to creating a
pretty walnut orchard dining
room in east London last
month for the California Walnut Commission.
Ms. O’Shaughnessy’s Rudolph Rage Room is only set
to be around briefly, this
weekend. The world of popups moves fast—and it can
break things, too.
Misses and Hits
Federal Reserve economic
projections for 2017
Dec. 2016
Dec. 2017
Unemployment Rate
Core Inflation
raising rates because
inflation was moving toward
their 2% target, but they
raised them because of a
stronger economy and job
market.
Next year the Fed is
reckoning on another three
rate increases, and the
market is expecting two. But
both are hard to square with
the bank’s economic
projections. They show gross
domestic product up 2.5% on
the year in the fourth
quarter of 2018, matching
2017’s pace. In September,
the projections called for
2.1% growth in the last
quarter of 2018. That probably reflects an expectation
that the Republican tax plan
will give the economy a
boost. Policy makers also
foresee a lower unemployment rate, now projecting it
will slide to 3.9% versus the
4.1% they had penciled in
September.
Yet the inflation forecast
didn’t change, with the
projection for the Fed’s
preferred measure of core
prices, which excludes food
and energy items, pegged to
increase 1.9% next year from
1.5% this year.
Given how poorly
economists’ inflation forecasts have done lately, the
unchanged projection makes
some sense.
But it is hard to imagine
that an economy that grows
faster and an unemployment
rate that sinks lower
wouldn’t throw off more
heat.
Moreover, the projection
for unemployment sliding to
3.9% from the current 4.1%
would represent a much
slimmer drop than the 0.6percentage-point decline
that the unemployment rate
registered through November this year.
The further it goes below
4%, the more likely Fed
policy makers will raise rates
further.
The Fed didn’t offer up
any real surprises this year.
Next year will be another
matter.
—Justin Lahart
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
The biggest shock about
the Federal Reserve this year
is it got its prediction of
interest-rate increases right.
The danger for investors in
2018 is the Fed will get it
wrong and rates will end up
higher than expected.
Fed policy makers on
Wednesday raised their
target range for overnight
rates for a third time this
year. This was the first year
it met its promise on rates
since it started to plan for
increases in 2015.
Another thing that stood
out is that policy makers
met their promise even
though the economy didn’t
perform the way they
thought it would. They
4.5%
4.1%
1.8%
1.5%
Note: Unemployment-rate forecast is for
fourth-quarter average. Inflation projection
is for fourth-quarter change on the year.
Source: Federal Reserve
thought that the unemployment rate would fall less
than it has, and that the
economy would be weaker,
but that inflation would be
stronger. In other words,
they thought they would be
Apple spends billions of dollars a year to help its manufacturing partners. Still, $390 million may go further than many
think.
That’s how much the world’s
most valuable company
awarded Finisar Wednesday
out of its “advanced manufacturing fund.” Apple created the
$1 billion fund earlier this year
to support U.S.-based manufacturing operations, not coincidentally after President Donald
Trump spent his campaign
lambasting the company for
not building more of its products domestically.
In this case, it helps when
politics combine with the law
of supply and demand. Silicon
Valley-based Finisar makes vertical-cavity surface-emitting lasers, or VCSELs. These are key
components in the types of 3D
sensing arrays that Apple uses
in its iPhone X to scan the
user’s face.
Apple reportedly plans to incorporate its FaceID technology
into more iPhone models in the
near future, which means it
needs to boost supply of VCSELs well beyond current capacity. Supporting the Finisar
plant located in Sherman,
Texas, should help accomplish
this aim and may score Apple
some political points in the
process. But it should be noted
that Finisar clarified in a filing
later in the day that the award
was not an investment, but
rather “anticipated future business” between the two companies.
That means Finisar is still on
the hook to scale up the facility
by the middle of next year. Still,
the announcement represented
a rare public nod of approval
from Apple, which is typically
loath to discuss its relationships and usually forbids its
suppliers from even mentioning
its name in public. Sometimes,
it helps more to be seen.
—Dan Gallagher
ly
.
The Fed Gets It Right, but Risk Remains Going Into 2018
Why Apple
Chipped In
On Finisar
MARKETS
OPEC Expects Oil Glut Until End of 2018
JAMES DURBIN FOR THE WALL STREET JOURNAL
no
OPEC production fell to a
six-month low but U.S. output
surged faster than expected,
meaning oil markets may not
rebalance before the end of
2018,
the
COMMODITIES group said
in
its
monthly oil
report.
The Organization of the Petroleum Exporting Countries
said its crude production fell
by about 133,500 barrels a day
in November to 32.45 million
barrels a day.
The group and its Russia-led
allies agreed last month to extend the combined production
cuts of 1.8 million barrels a day
until the end of 2018. However,
the output decrease last month
was tied to other factors, with
domestic demand for Saudi
Arabian oil declining in the
winter and Angola and Venezuela facing production issues.
However, OPEC said other producers were fast filling the gap,
notably U.S. shale-oil companies that have been taking advantage of rising oil prices and
improved efficiencies.
n-
BY BENOIT FAUCON
A worker on a drilling rig in Texas. Surging U.S. output has offset OPEC production cuts.
On Wednesday, oil for January delivery fell 0.9%, to
$56.60 a barrel on the New
York Mercantile Exchange after U.S. data showed that fuel
inventories rose and production increased.
Non-OPEC
oil
supply
growth for 2017 now stands at
about 810,000 barrels a day,
representing an upward revision of around 150,000 barrels
a day from the previous OPEC
report. For 2018, the forecast
for supply growth outside the
group was increased by about
120,000 barrels a day to
around 990,000 barrels a day.
Russia is increasing its output by about 50,000 barrels a
day on average this year, OPEC
said. But the estimate includes
natural-gas liquids that are excluded from the agreed reductions.
The main driver in nonOPEC output, though, comes
from the U.S., where production is expected to rise by
610,000 barrels day this year
and 1.05 million barrels a day
next year.
OPEC’s forecast of U.S. production in 2018 was revised up
by 180,000 barrels a day from
last month.
This production surge is
due to “increased investment
in U.S. tight oil and improved
well efficiency,” along with
healthy economic growth and
rising oil prices, OPEC said.
As a result, the overhang in
inventories in industrialized
nations may not clear up until
the end of next year, OPEC
said. The assessment errs on
the cautious side as Russia, for
instance, had said the glut
may end as early as mid-2018.
Currency Traders Feel Sting of Slumping Dollar
BY CHELSEY DULANEY
Currency traders have been
left behind in the 2017 market
rally.
A BarclayHedge index that
tracks returns for 58 currencytrading proCURRENCIES
grams is up
just 0.6%
for the year,
on track for its worst annual
performance since 2006.
What’s worse, 2017 was a
year when the environment
for currency trading was generally favorable, said Shaun
Osborne, chief foreign-exchange strategist at Scotiabank. Volatility remained low,
while traders were replete
with new trends to bet on,
such as the rallies in the euro
and Canadian dollar.
“It’s a little curious that
nothing has come together for
markets this year,” said Mr.
Osborne. “Nothing in the traditional armory of currency
traders has worked.”
One factor that likely
weighed on returns for currency traders was the surprise
selloff in the U.S. dollar.
Investors and Wall Street
analysts entered 2017 broadly
bullish on the greenback.
Hedge funds were holding
more than $25 billion in speculative bets on a stronger U.S.
currency at the start of the
year, according to Commodity
Futures Trading Commission
data.
Instead, the WSJ Dollar Index, which measures the U.S.
currency against a basket of 16
others, has fallen 6.7% this
year as the Trump administration’s growth-supportive poli-
Hard Times
Currency traders are on track for
their worst year since 2006.
Returns for Barclay
Currency Traders Index
5%
4
3
2
1
0
–1
2006 ’08
’10
’12
’14
’16
Source: BarclayHedge
THE WALL STREET JOURNAL.
cies stalled and persistently
weak U.S. inflation raised
questions about the path for
higher interest rates.
Meanwhile, currencies that
investors had expected to
struggle in 2017, such as the
euro and Japanese yen, rebounded as economic growth
in those regions accelerated
and investors began to prepare for a pullback in centralbank stimulus.
That has hampered a popular investment strategy, known
as the carry trade. Carry
trades involve borrowing a
currency in which interest
rates are low, such as the euro,
to buy higher-yielding debt in
another currency, like the Brazilian real.
Gains are amplified when
the low-yielding currency falls
and the high-yielding currency
rises.
The trade has failed to deliver this year, Scotiabank
said, as currencies moved
against investors’ bets. The
euro has surged 12% against
the dollar this year and the
yen has gained 4%, while many
of the highest-yielding currencies—the Turkish lira, Brazilian real, South African rand—
have been roiled by political
uncertainty.
Mr. Osborne said he thinks
the carry trade will recover in
2018. Since 2000, the strategy
has followed a down year with
returns of about 8%, he said.
Still, he warns the lackluster returns from this year
could signal a broader shift in
the industry as foreign-exchange trading becomes more
automated.
“Maybe it’s a reflection of
broader malaise in the industry,” said Mr. Osborne. “We’re
seeing more trading on platforms, more algorithmic trading.”
Treasurys
Rise After
CPI, Rates
BY AKANE OTANI
U.S. government bond
prices rose Wednesday after
data showed inflation pressures remain muted and the
Federal Reserve raised shortterm
interest
CREDIT
rates as exMARKETS pected.
The yield on
the benchmark
10-year U.S. Treasury note settled at 2.353%, compared with
2.403% Tuesday.
Yields, which fall as bond
prices rise, slipped early
Wednesday after Labor Department data showed continued signs of weak inflation.
The consumer-price index,
which measures what Americans pay for everything from
coffee to prescription drugs,
rose 0.4% in November, in line
with what economists surveyed by The Wall Street Journal had expected.
Core prices, which exclude
the more volatile categories of
food and energy, rose 0.1% in
November, missing economists’ estimates for a 0.2% increase. That suggested inflation pressures remain muted
on the whole, some analysts
said, helping push Treasury
yields lower. Inflation tends to
weaken demand for government bonds, since it chips
away at the purchasing power
of fixed returns.
Bond yields then extended
gains after the Fed said it
would raise its benchmark federal-funds rate by a quarter
percentage point. Investors
and traders had expected the
central bank to announce an
interest-rate increase. Some
analysts said they were surprised that two Fed committee
members voted against a December rate increase. The
move represented the first
double dissent at a 2017 Fed
meeting and could foreshadow
more disagreement in 2018
over the pace of rate increases
given a streak of soft inflation
data, some analysts said.
For personal, non-commercial use only. Do not edit, alter or reproduce. For commercial reproduction or distribution, contact Dow Jones Reprints & Licensing at (800) 843-0008 or www.djreprints.com.
B12 | Thursday, December 14, 2017
THE WALL STREET JOURNAL.
* ***
MARKETS
Blue Chips Post Another Banner Day
Dow industrials finish
at 68th record this
year after improved
outlook on growth
BY AMRITH RAMKUMAR
AND RIVA GOLD
Some assets swung after the Federal Reserve raised interest rates and offered projections for next year.
2 p.m.
Stocks
Fed announcement
0.5%
S&P 500 Utilities
0
S&P 500
–0.5
–1.0
S&P 500 Financials
–1.5
10 a.m.
11
noon
1 p.m.
2
3
11
noon
1 p.m.
2
3
4
10-year Treasury yield
2.45%
2.40
2.35
10 a.m.
WSJ Dollar Index
U.S. crude
Gold
87.25
$58.00
$1,252
57.50
1,250
57.00
1,248
87.00
86.75
56.50
86.50
9
1,246
56.00
10
ly
.
2.30
co Fo
m rp
m e
er rs
ci on
al a
us l,
e
on
The Dow Jones Industrial
Average posted a record after
the Federal Reserve raised
short-term interest rates for
the third time this year and
said it remains on track to
chart a similar course in 2018.
The cenWEDNESDAY’S tral bank
MARKETS
on Wednesday stuck
to its forecast for three more increases
next year, while raising its economic growth projection, a development that investors and
analysts said was positive for
stocks.
The pace of economic
growth—strong enough to
support corporate profits but
slow enough to keep the Fed
on a gradual path of rate increase—has helped propel major indexes to records this
year, analysts said.
The projections also fell in
that sweet spot, said Nathan
Thooft, senior managing director of global asset allocation at
Manulife Asset Management.
“That’s like the Holy Grail,”
Mr. Thooft said, adding that
expectations for tax cuts have
recently bolstered the favorable backdrop for riskier assets.
The Dow Jones Industrial
Average added 80.63 points, or
0.3%, to 24585.43, rising for a
fifth consecutive session to its
68th record of the year. The
S&P 500 closed down 1.26
points, or less than 0.1%, at
2662.85, weighed down by declines in financial stocks. The
Nasdaq Composite climbed
13.48 points, or 0.2%, to
6875.80.
Treasury yields and the dollar extended declines following
11 noon 1
2
3
4
9
1,244
10
11
noon
1
2
9
the Fed’s decision. They fell
earlier in the session after
data Wednesday showed that
U.S. consumer prices rose in
November, propelled by a rise
in energy prices, but underlying inflation pressures showed
signs of moderation. The WSJ
Dollar Index, which tracks the
U.S. currency against a basket
of 16 others, declined 0.7%.
The yield on the 10-year
Treasury note fell to 2.353%
from 2.403% Tuesday. Yields
fall as bond prices rise.
The Fed left its inflation
10
11
noon
1
THE WALL STREET JOURNAL.
Sources: FactSet; WSJ Market Data Group (dollar index)
projections intact, and two officials dissented from the decision to raise rates, surprising
investors who had anticipated
a more aggressive stance,
some analysts said. The S&P
500 financial sector, the index’s best performer in the
haul plan by the end of the
year. House and Senate Republicans on Wednesday reached
an agreement on the final version of a tax bill. The full details will be released this week,
and votes are set for next
week.
Some analysts said Democrat Doug Jones’s victory in
the Alabama Senate race,
which trims the GOP’s majority
in the chamber to one seat,
could increase pressure on Republicans to complete the tax
overhaul before the end of the
year.
Declines in the financial
sector offset gains in shares of
industrials and consumer staples firms.
Caterpillar rose $5.15, or
3.6%, to $148.57 after the company said retail sales of its machinery were up in regions
across the world over the
three-month period ended in
November.
A rise in shares of Boeing
also boosted the blue-chip index. The aerospace company
added 1.90, or 0.7%, to 291.84.
Caterpillar and Boeing together accounted for more
than half of the Dow’s gains.
Honeywell International
advanced 2.06, or 1.3%, to
155.80 after the industrial conglomerate said earnings this
quarter will come in at the
high end of its projection.
Oil prices slid for a second
day after U.S. data showed
that fuel inventories rose and
production increased. Crude
for January delivery fell 0.9%
to $56.60 a barrel on the New
York Mercantile Exchange.
The Stoxx Europe 600 fell
0.2% amid a decline in utility
shares. The Nikkei Stock Average ended down 0.5% as the
dollar declined against the
yen. At midday Thursday, the
Nikkei was down 0.1%. Hong
Kong’s Hang Seng Index
jumped 1.5% Wednesday in its
best day since November, with
bank shares leading the index
higher. Early Thursday, it was
up less than 0.1%.
past three months, fell 1.3%,
slipping alongside bond yields.
Higher bond yields tend to
boost banks’ lending profitability.
Shares of financial firms
had been rising lately as Congress works to pass a tax-over-
Watching your 8-year-old mix and match potions,
you see “Distinguished Chemistry Scholar” in her future.
U.S.
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