For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com WEDNESDAY, NOVEMBER 1, 2017 ~ VOL. CCLXX NO. 104 * * * * * * NASDAQ 6727.67 À 0.4% What’s News Business & Finance C ME aims to launch a futures contract based on bitcoin by the end of the year, a move that would mark a big step in the evolution of the digital currency. A1 Senators pressed officials from Twitter, Facebook and Google to explain why they didn’t recognize Russialinked accounts earlier. B1 The Dow climbed 4.3% in October, outperforming both the S&P 500 and the Nasdaq, as a global economic pickup lifted blue-chip firms. B1 The S&P 500 edged up Tuesday, aided by food-company shares. The Dow added 28.50 points to 23377.24. B16 Samsung shook up its senior ranks, looking to address concerns about a leadership vacuum at the firm. B1 Tesla is having to wrestle with mounting signs of labor unrest as it cranks up production on the Model 3. B1 Rockwell Automation has rejected a takeover bid by Emerson Electric valued at roughly $27.5 billion. B3 Federal trade officials are recommending that the U.S. impose a tariff of up to 35% on imported solar panels. B3 BP said it would restart share buybacks after reporting healthy earnings. B6 Carlyle’s earnings surged on strong growth in performance-based fees. B15 World-Wide A truck mowed down pedestrians and cyclists on a Manhattan bike path, killing eight people and injuring at least a dozen, in what officials called a terror attack. The driver was identified as a 29-year-old man originally from Uzbekistan. A1, A4-5 The House GOP tax plan will preserve a top individual rate of 39.6%. Party leaders are delaying the release of the bill by a day to iron out unresolved issues. A1 Large groups of Americans are uncertain about the GOP plan or are skeptical about its merits, a poll found. A2 Papadopoulos’s plea deal indicates he was discussing acquiring emails from Russian contacts well before the public was aware Democrats’ systems had been hacked. A2 Catalonia’s ousted leader said he would respect the result of regional elections called by Spain’s government. A6 The lawmaker who heads the House financial-services panel, Texas Republican Hensarling, plans to retire. A3 U.S. aircraft carriers may remain near the Korean Peninsula for maneuvers during Trump’s Asia visit. A7 U.S. Treasury officials urged Persian Gulf countries to clamp down harder on ties to North Korea. A7 Islamic State claimed responsibility for a deadly attack in Kabul by a boy suicide bomber. A6 Thousands displaced by Harvey remain in temporary housing. Losses are estimated at $73.5 billion. A3 CONTENTS Business News...... B3 Crossword.............. A12 Earnings..................... B6 Heard on Street.. B17 Life & Arts......... A9-11 Markets............. B16-17 Opinion.............. A13-15 Property Report.... B8-10 Sports........................ A12 Technology............... B4 U.S. News............. A2-5 Weather................... A12 World News. A6-7,16 > s Copyright 2017 Dow Jones & Company. All Rights Reserved 10-YR. TREAS. À unch , yield 2.374% OIL $54.38 À $0.23 GOLD $1,267.00 g $7.10 EURO $1.1648 YEN 113.64 A New York Police Department officer stood next to a body on Tuesday after a truck driver careened down a Hudson River bike path on the west side of Lower Manhattan. Terror Rampage in New York Driver mows down cyclists, pedestrians, killing eight and wounding several, in city’s deadliest attack since 9/11 Eight people were killed and at least a dozen injured on Tuesday when a truck mowed down pedestrians and cyclists on a lower Manhattan bike path in what officials said was a “cowardly act of terror,” the deadliest attack in New York City since Sept. 11, 2001. The eurozone economy slowed slightly last quarter and the inflation rate fell. A6 Aetna said profit rose, while revenue fell. The insurer declined to address a report of talks with CVS. B6 STOXX 600 395.22 À 0.3% HHHH $4.00 BEBETO MATTHEWS/ASSOCIATED PRESS; ST. CHARLES COUNTY DEPARTMENT OF CORRECTIONS/ZUMA PRESS (SAIPOV) DJIA 23377.24 À 28.50 0.1% WSJ.com By Melanie Grayce West, Mara Gay, Zolan Kanno-Youngs and Kate King The driver shouted “God is great” in Arabic when he got out of his truck and was confronted by police, a law-enforcement official said. He was identified by officials as Sayfullo Saipov, a 29year-old from Tampa, Fla., who came to the U.S. in 2010 and is originally from Uzbekistan. He is in custody at a local hospital after he was shot in the abdomen by an officer, police said. A law-enforcement official said police found handwritten notes near the truck saying that the suspect carried out the attack in the name of ISIS. The terror unfolded shortly after 3 p.m., when the suspect drove a flatbed pickup truck rented from Home Depot for nearly a mile along a picturesque stretch of a bike path along the Hudson River, leaving behind mangled bikes and bodies. The carnage ended at an intersection in Tribeca near the World Trade Center, where the truck smashed into a small school bus. Then the suspect exited his truck, brandishing a paintball gun and pellet gun before being shot by a New York Police Department officer. “This was an act of terror,” New York City Mayor Bill de Blasio said at a news conference. “A particularly cowardly act of terror aimed at innocent civilians.” Since the 2001 attack on Dow Displays Industrial Strength The Dow Jones Industrial Average raced past its peers in October, as a pickup in economic growth around the world boosted shares of bluechip companies that sell everything from bulldozers to airplanes. B1 The Dow’s lead over the S&P 500 in 2017 is the biggest since 2011 7.5 pct. points 2017 3.26 5.0 2.5 Suspect Sayfullo Saipov, above, in an undated photo Attack in NYC Halloween parade goes on with tighter security..... A4 New focus on threat from Central Asia ...................... A5 the World Trade Center, there have been 23 incidents of radical Islamist-motivated attacks that have resulted in 119 fatalities, through the Orlando, Fla., nightclub shooting in June 2016, according to an April re- -2.5 -5.0 -7.5 2000 ’05 ’10 ’15 Note: Positive indicates Dow outperformed S&P 500; negative, underperformed. Through Oct. 31 of each year. THE WALL STREET JOURNAL. Source: WSJ Market Data Group Bitcoin Futures Plan Signals New Respect BY ALEXANDER OSIPOVICH Bitcoin is moving from the margins of the financial world closer to its center. CME Group Inc., the world’s biggest exchange group, said Tuesday it aims to launch a futures contract based on bitcoin by the end of the year. The plan, subject to regulatory approval, would be a big step forward in the evolution of the digital currency. Futures are a way for traders to bet on whether the price of a commodity, such as oil or gold, will rise or fall. Introducing a U.S. futures contract based on bitcoin would enable Wall Street banks and trading firms to protect themselves against price swings in the digital currency. It could also provide retail investors with an easier way to trade bitcoin. Bitcoin was conceived in 2008 by an anonymous creator known as Satoshi Nakamoto. It is a purely digital currency, or “cryptocurrency”— essentially, strings of ones and zeros flitting around in cyberspace—designed to act as an alternative to governmentbacked currencies. Many officials and bankers around the world, including J.P. Morgan Chase Chief Executive James Dimon, have been reluctant to embrace bitcoin. Its reputation has been tarnished by an association with money laundering and other illicit activity, while volatility and uncertainty over its legal status have kept the digital currency trading in the shadows of global markets for years. CME’s plan to bring bitcoin to the futures market offers a stamp of approval from a financial giant at a time when Please see TRADE page A7 dence that Tuesday’s incident was part of a wider plot. He directed state agencies to increase security at high-profile locations around the state, including subways, bridges and airports, though NYPD officials said there was no information to suggest that there was a continuing threat. Asked if the suspect had previously been on authorities’ radar, a law-enforcement official familiar with the investigation said, “An associate was and is known to authorities,” but declined to provide further details. The suspect worked as a driver for Uber Technologies Inc., the ride-hailing company confirmed. “We are horrified by this senseless act of violence,” an Uber spokeswoman said. “Our hearts are with the victims and their families. We have reached out to law enforcement to provide our full assistance.” The city’s fire commisPlease see ATTACK page A4 GOP Tax Plan Won’t Cut Rate for Highest Earners WASHINGTON—The House Republican tax plan will preserve a top individual tax rate of 39.6%, according to people By Richard Rubin, Siobhan Hughes and Kristina Peterson 0 port by the U.S. Government Accountability Office. The number of fatalities caused by domestic violent extremists has ranged from one to 49 in a given year, according to the GAO report. Many of the incidents have involved lone-wolf attackers inspired by Islamic State, allowing the terror group to become an international threat without always directing attacks itself. President Donald Trump said in a Twitter message Tuesday: “In NYC, looks like another attack by a very sick and deranged person.” Later, he indicated there could be changes to U.S. immigration policy. “I have just ordered Homeland Security to step up our already Extreme Vetting Program,” he said in a tweet Tuesday evening. “Being politically correct is fine, but not for this!” New York Gov. Andrew Cuomo said there was no evi- familiar with the matter, though party leaders are delaying its release by a day to iron out unresolved issues. The plan for the top rate marks a retreat for Republicans on a question that has spurred intense debate in Washington: How will a tax overhaul treat the most affluent Americans? Republicans last year had been discussing a top rate of 33%, and then moved to 35% earlier this year. But they left themselves open to the possibility of keeping it unchanged or lowering it by some smaller amount. The plan also drops the cor- porate tax rate to 20%, and it delays a planned repeal of the estate tax, the people said. Those are among the details House Speaker Paul Ryan (R., Wis.) shared with conservative groups in advance of the plan’s release. House Republicans had planned to release the bill Wednesday but delayed it until Thursday to finish technical work on the legislation, circulate ideas among rank-and-file members and address thorny issues such as how to treat deductions for state and local taxes. Party leaders want to repeal the deduction, but that has sparked a rebellion from lawmakers in high-tax states like New York and New Jersey and set off a scramble for compromise, centered on keeping the deduction for property taxes. “We are pleased with the progress we are making and we remain on schedule to take action and approve a bill at our committee beginning next week,” House Ways and Means Committee Chairman Kevin Brady (R., Texas), the bill’s chief author, said Tuesday night, citing consultations with President Donald Trump and House leaders. The contours of the plan— lower tax rates, a bigger standard deduction, fewer targeted tax incentives and a net tax cut of $1.5 trillion over a decade— have been clear for weeks. What happens next is the unveiling of all of the particulars, which will get picked apart by Democrats and lobbyists, and perhaps by some Republicans Please see PLAN page A2 Poll finds skepticism, uncertainty on tax bill.......... A2 GOP Rep. Hensarling to retire from Congress........................... A3 To the Worsening Troubles At Sears, Add Skittish Suppliers Manufacturers demand quicker payment and some pare back shipments BY SUZANNE KAPNER Shoppers hunting for this holiday season’s hot toy, the L.O.L. Surprise, may have trouble finding it at Sears or Kmart stores. Worried about the financial health of the retail chains, the company that makes the toy, a ball that children unwrap to reveal small dolls, has reduced shipments to Sears Holdings Corp. “We cut their credit line and shortened payment terms,” said Isaac Larian, chief executive of toy maker MGA Entertainment Inc. “If they pay one day late, we will cut them off.” Sears once dominated American retailing and helped build famous brands, including Whirlpool appliances, Craftsman tools, Schwinn bicycles and Allstate insurance. Now, bleeding cash and losing shoppers, the 124year-old firm is scrambling to keep suppliers— the lifeblood of any retail chain—from bolting. To guarantee shipments from LG Electronics Inc. and Samsung Electronics Co., Sears is paying them cash up front for some goods, said people familiar with the matter. Levi Strauss & Co. has stopped supplying women’s jeans to the chain, said another person. At Clorox Co., “We have certainly adjusted our payment terms,” said CEO Benno Dorer. A monthslong feud between Sears and Whirlpool Corp. burst into the open last week when the sides couldn’t agree on terms to Please see SEARS page A8 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A2 | Wednesday, November 1, 2017 THE WALL STREET JOURNAL. * *** U.S. NEWS Papadopoulos Sought Clinton Emails Early BY SHANE HARRIS Former Trump campaign adviser George Papadopoulos was discussing the possibility of acquiring stolen emails from Russian contacts well before the public was aware that Democratic Party systems had been hacked, his plea deal with the government indicates. That disclosure, combined with press accounts and statements from current and former U.S. officials, suggests Trump campaign supporters were engaged in multiple lines of effort in the spring and summer of 2016 to obtain “dirt” about then-candidate Donald Trump’s rival, Hillary Clinton, including emails Russian hackers claimed to have obtained about her. White House special counsel Ty Cobb said Tuesday that Mr. Papadopoulos’s role in the campaign, and his outreach efforts to Russia described in his plea agreement, were exaggerated. “The press can hyperventilate all it wants with regard to Papadopoulos, and they’ve turned him into everything but Batman,” Mr. Cobb said. “But at the end of the day, he’s going to be as memorable as Mr. Papagiorgio from [the 1997 movie] ‘Vegas Vacation.’” Mr. Trump has said there was no collusion between his campaign and Russia, an assertion he repeated Tuesday. The president also minimized Mr. Papadopoulos’s role in his campaign, saying in a tweet, “Few people knew the young, low The Tax Plan Cometh Many Americans are unpersuaded that their tax bill would fall under a GOP plan, but large numbers remain undecided. If President Trump’s tax plan became law do you believe that you would: Pay more Pay same Pay less Don’t know in taxes in taxes in taxes enough 25% 21% 14% 40% Total Republicans 9 29 24 Independents 23 19 14 Democrats 40 16 38 44 7 38 Poor/Working class 27 18 Middle class 25 24 16 34 Upper class 22 21 22 35 8 48 Note: Numbers rounded Source: WSJ/NBC News telephone poll of 900 adults conducted Oct. 23–26; margin of error +/-3.27 pct. pts. THE WALL STREET JOURNAL. Poll Finds Skepticism, Uncertainty on Taxes BY PETER NICHOLAS The debate in Congress over revamping the tax code begins with large groups of Americans not knowing much about the Republican plan or skeptical about its merits, a new Wall Street Journal/NBC News survey finds. House Republicans are set to release their tax proposal this week, adding detail to the broad outlines that President Donald Trump and legislative allies have put forward to date. In the new survey, 25% of Americans rated the tax plan promoted by Mr. Trump a “good idea,” compared with 35% who deemed it a bad one. Some 40% had no opinion or weren’t sure. In promoting the plan, Mr. Trump has cast it as a boon to middle-class households. Speaking at the White House on Tuesday, he called the plan “a tax bill for middle class; it’s a tax bill for jobs.” Democratic critics have argued that it is aimed primarily at the wealthiest households. The survey suggested Mr. Trump and the GOP have work to do to make their case. Some 46% of those polled said they expected to pay more in taxes or about the same if the plan became law, including 25% who said they would pay more. By contrast, 14% said they expected that they would pay less in taxes if the plan were enacted. Four in 10 respondents said they didn’t know enough to have an opinion. “They’re starting off with very mushy numbers and a long way to go to compel and convince people of the merits of the plan,” said Bill McInturff, a Republican pollster who conducted the survey with Democrat Fred Yang. Another Republican argument for a tax overhaul is that it would lift the economy by lowering corporate tax rates in ways that would trigger job growth and wage increases. The poll was conducted Oct. 23-26 and included 900 adults. The margin of error was plus or minus 3.27 percentage points. newspaper the Daily Telegraph on Tuesday that he was the professor described in the plea agreement. Mr. Mifsud, a native of Malta, denied any wrongdoing in his interactions with Mr. Papadopoulos, telling the newspaper that he “had a clear conscience.” Mr. Papadopoulos believed he had met someone with “substantial connections with Russian government officials,” which Mr. Papadopoulos “thought could increase his importance as a policy advisor to the campaign,” according to his plea agreement. Thus began a relationship that led to further contacts between Mr. Papadopoulos and other Russians, including people who claimed to know influential level volunteer named George, who has already proven to be a liar.” But at least two other Trump aides or allies were engaged in similar efforts as Mr. Papadopoulos, at approximately the same time, according to current and former U.S. officials. Mr. Papadopoulos was apparently among the first people to get a hint that the Russians had undertaken an effort to steal and release emails that would harm Mrs. Clinton’s campaign. A 30-year-old energy expert with no political experience before he joined the Trump team in spring 2016, Mr. Papadopoulos was living in London when Sam Clovis, a senior Trump adviser, tapped him to join a panel of foreignpolicy advisers. Based on a March 6 conversation with Mr. Clovis, Mr. Papadopoulos “understood that a principal foreign-policy focus of the campaign was an improved U.S. relationship with Russia,” his plea agreement says. A lawyer for Mr. Clovis, Victoria Toensing, denied that he told Mr. Papadopoulos this was a policy goal, but said Mr. Clovis appreciated the advice of volunteer advisers. While traveling in Italy on March 14, Mr. Papadopoulos met a London-based professor who took great interest when he found that Mr. Papadopouolos worked for the Trump campaign, the plea agreement says. Joseph Mifsud, an honorary director of the London Academy of Diplomacy, told the British PLAN GOP Tax Bill Would Affect Trump And Clinton Voters Differently Continued from Page One wary of removing long-loved tax breaks. “Stay tuned,” Mr. Brady told reporters on Tuesday. “You’ll know the details very soon.” Republicans, eager to push the bill through the House by Thanksgiving and onto Mr. Trump’s desk this year, are preparing an aggressive sales job, bolstered by outside conservative groups and the White House and built around the case that the tax cuts will boost the economy. “The overall bill, it is a winner, and that’s why I’m excited,” said House Majority Leader Kevin McCarthy (R., Calif.). Tax treatment for the wealthy is among the hottest issues. Democrats have slammed Republicans for planning a giveaway to the highest earners. The plan to keep a top rate of 39.6%—though possibly for a smaller segment of the population than currently faces it—and to move slowly toward estate-tax repeal shows the GOP is approaching rates for the wealthy cautiously. The party also faces competing priorities and is constrained by concerns about budget deficits. Mr. Trump has said he wants the overhaul to be focused on cuts for middleincome households. The Republican retreat on high-end individual tax rates means some high-income wage earners could face higher federal tax bills, particularly if they live in high-tax states and are thus no longer able to deduct their state income taxes, as the plan will suggest. Democrats point to the significant benefits that remain in the plan for many high-income and wealthy households, including what is likely to be a higher income threshold for the top rate and repeal of the estate tax. Importantly, the plan is expected to include a lower rate for much business income reported on individual tax returns, which means less income will face the 39.6% tax rate. “The GOP will give the wealthiest one percent tax breaks worth trillions of dollars, but Republicans want to force millions of hard working American families to pay more in taxes,” House Minority Leader Nancy Pelosi (D., Calif.) said in a statement Tuesday. Mr. Brady and committee members have kept the details closely guarded, and precious few bits have emerged beyond the outline that congressional Republicans and the Trump administration released in late September. That has stoked frustration and nervousness among Republicans. Among the important pieces Tech giants come under fire in the Senate.............................. B1 The House tax plan bill is set to be released this week and the changes it will bring to the tax code, if it becomes law, are likely to vary across the country. A full accounting of any effects won’t be possible until the GOP announces tax rates and tax brackets. But some of the most popular breaks believed to be on the chopping block are most heavily used by high-income areas that typically vote for Democrats. Taxes and the political divide The Wall Street Journal analyzed county-level tax return data for 2015, the most recent year available, in three types of places: counties that President Donald Trump won convincingly, those that Hillary Clinton won convincingly and those that voted for Mr. Trump after twice voting for President Barack Obama. This analysis includes 2,219 of the nation’s 3,111 counties (and doesn’t count Alaska, where county-level election results aren’t available). Solid Democratic Clinton victory of 25 percentage points or more Tax returns in 2015 Trump pickups Trump victory in ’16; Obama victory in ’08 and ’12 32.5 million 40 million Average income reported: Solid-Clinton counties, primarily centered around large metro areas, account for about 40 million tax ﬁlers, while the more widely spread solid-Trump counties are home to about 32 million. Nearly eight million tax ﬁlers live in the Obama counties that ﬂipped to Trump counties. These political divisions reveal numerous contrasts among individual tax returns. Solid Republican Trump victory of 25 percentage points or more $79,939 State/local tax deductions Republicans have been talking about repealing the deduction for state and local taxes, which tend to be higher in Democraticcontrolled places. They have the most to lose. The GOP's proposal to keep a deduction for property taxes may change this calculation. % OF RETURNS 7.8 million $59,462 $55,822 Mortgage interest and charitable donation deductions Nearly doubling the standard deduction would erode the beneﬁt of the deductions for mortgage interest and charitable contributions. Use of those breaks is concentrated in coastal areas with high-income households. Mortgage interest deduction Charitable contribution deduction AVG. AMOUNT $16,934 21.7% $10,173 26.9% 23.3% $7,879 17.2% $7,019 18.7% $5,928 27.5% $11,049 20.6% $7,070 22.5% $4,094 32.5% Nationally: 29.7% $12,432 Nationally: 21.6% $8,608 $7,039 Nationally: 24.6% $5,930 Child tax credit Earned income credit The child tax credit is expected to rise—by an undetermined amount—in the GOP plans. That credit is more evenly distributed across the country. But it is AVG. most frequently % OF RETURNS AMOUNT claimed in 12.9% $1,109 Trump-friendly pockets of Utah and 16.8% $1,279 Arizona, where more 14.3% $1,246 than one-quarter of Nationally: 14.9% $1,207 taxpayers use it. An outline of the GOP plan provided no details on the fate of this credit, which is claimed by low-income ﬁlers at nearly equal rates in Democratic AVG. and Republican AMOUNT % OF RETURNS strongholds. 19.9% $2,461 19.6% $2,423 16.9% $2,295 Nationally: 18.8% $3,047 Note: Child tax credit ﬁgures don’t include the expected higher credit. Sources: Internal Revenue Service (tax returns, rates); David Leip’s Atlas of Presidential Elections (election results). Max Rust and Richard Rubin/THE WALL STREET JOURNAL. still unknown are new rules for the overseas income of U.S. companies, the income cutoffs for individual tax brackets, the size of the child tax credit and which rules apply to a 25% tax rate for businesses such as partnerships that pay taxes through their owners’ individual tax returns. Hundreds of other details wait under the surface. The Republicans’ rate-cut goals total more than $5 tril- CORRECTIONS AMPLIFICATIONS Joseph DeSimone, founder of Carbon Inc., is still a professor at the University of North Carolina. An article in the November/ December issue of The Future of Everything magazine about a partnership between Adidas AG and Carbon, a 3-D-printing startup, incorrectly said he had left the school. Also, the 3-D printer Carbon uses for its new printing process is called the M2. The article and a photo caption incorrectly referred to it as the SpeedCell, which is the name of the whole system, including the software that runs the M2. figures in the Russian foreign ministry. He remained involved with the Trump team through the inauguration. Then, on Jan. 27, 2017, Federal Bureau of Investigation agents investigating election interference by Russia approached him and asked about his relationship with Mr. Mifsud. Mr. Papadopoulos now admits he lied when he told the FBI he met the professor and first learned about the Russian information on Mrs. Clinton before joining the Trump campaign. In fact, he said, he was already aboard and pursuing contacts with Russia on the campaign’s behalf. J.C. Penney Co.’s current fiscal year ends Feb. 3. A Business News article on Saturday about the department-store chain cutting its earnings outlook incorrectly said the company’s fiscal year ends Jan. 28. The first name of Sean Smith, an information management officer who died in the 2012 attack on a U.S. diplomatic compound in Benghazi, Libya, was incorrectly given as Steven in a World News article on Tuesday about the capture of a suspect. Readers can alert The Wall Street Journal to any errors in news articles by emailing firstname.lastname@example.org or by calling 888-410-2667. lion over a decade, but the budget they wrote allows for only $1.5 trillion. They are looking for ways to reduce the cost of their plans, either by phasing in tax cuts or repealing some tax breaks. They also need to prevent the tax plan from increasing budget deficits after the first decade if they want to avoid a 60-vote threshold in the Senate that would require Democratic votes. The immediate corporate tax cut is important to Mr. Trump, who pushed back on Tuesday against reports that Republicans would cut the 35% rate three points at a time for five years. “We’re not looking for that, no. We’re not looking for that,” Mr. Trump said before a meeting with business trade-group leaders at the White House. “Some people have mentioned that. Hopefully not.” —Rebecca Ballhaus contributed to this article. THE WALL STREET JOURNAL (USPS 664-880) (Eastern Edition ISSN 0099-9660) (Central Edition ISSN 1092-0935) (Western Edition ISSN 0193-2241) Editorial and publication headquarters: 1211 Avenue of the Americas, New York, N.Y. 10036 Published daily except Sundays and general legal holidays. Periodicals postage paid at New York, N.Y., and other mailing offices. Postmaster: Send address changes to The Wall Street Journal, 200 Burnett Rd., Chicopee, MA 01020. All Advertising published in The Wall Street Journal is subject to the applicable rate card, copies of which are available from the Advertising Services Department, Dow Jones & Co. Inc., 1211 Avenue of the Americas, New York, N.Y. 10036. The Journal reserves the right not to accept an advertiser’s order. Only publication of an advertisement shall constitute final acceptance of the advertiser’s order. Letters to the Editor: Fax: 212-416-2891; email: email@example.com NEED ASSISTANCE WITH YOUR SUBSCRIPTION? By web: customercenter.wsj.com; By email: firstname.lastname@example.org By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat REPRINTS & LICENSING By email: email@example.com; By phone: 1-800-843-0008 GOT A TIP FOR US? SUBMIT IT AT WSJ.COM/TIPS For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 1, 2017 | A3 U.S. NEWS Harvey’s Toll Still Growing Months Later Hensarling Won’t Run For House Seat Again BY ANDREW ACKERMAN WASHINGTON—Rep. Jeb Hensarling of Texas, the head of a House panel responsible for overseeing Wall Street and financial regulators, said he is retiring from Congress at the end of 2018. As a conservative Republican and chairman of the House Financial Services Committee, he has pushed to cut the size of government. Many of his top policy goals have languished, in part because of a lack of Democratic support in the Senate. Those goals included a broad rollback of the 2010 Dodd-Frank financialoverhaul law and phasing out government-controlled mortgage companies Fannie Mae and Freddie Mac. “Although service in Congress remains the greatest privilege of my life, I never intended to make it a lifetime commitment, and I have already stayed far longer than I had originally planned,” said Mr. Hensarling, 60 years old. Mr. Hensarling’s tenure as chief of the financial services panel was due to end in early 2019 because of GOP term limits for committee chairmen. He was first elected to the House in 2002. Some of the House Republicans expected to make a bid for the post include Reps. Blaine Luetkemeyer of Missouri, Sean Duffy of Wisconsin, Bill Huizenga of Michigan and Ed Royce of California, according to House GOP aides. Other members of the financial-services panel, including Rep. Frank Lucas of Oklahoma and Rep. Patrick McHenry of North Carolina, could throw their hats into the ring for the post, according to congressional aides. Mr. Hensarling’s Dallas-area district is heavily Republican. President Donald Trump won 62.5% of the vote in the 2016 election. STUART VILLANUEVA/ASSOCIATED PRESS HOUSTON—This region has cleared enough post-flood debris from its neighborhoods to fill 700 Olympic-size pools. But two months after Hurricane Harvey swept across Texas, tens of thousands of people are still living in temporary housing and some schools remain closed. Moody’s Analytics estimates that Harvey caused $73.5 billion in economic loss—making it the secondcostliest natural disaster in U.S. history after Hurricane Katrina. The estimate includes costs for destruction of property and loss of output due to lost productivity. Most of that damage was sustained in Harris County, Texas, which includes the heavily populated Greater Houston area. While the majority of businesses are back up and running, city and county officials say the recovery from personal loss presents a bigger challenge that could drag on for years. As of mid-October, almost 61,500 people displaced by Harvey were living in hotel rooms paid for by the Federal Emergency Management Agency. The displaced occupied almost 22,000 rooms across 37 states, mostly in Harris County. Red Crossaffiliated shelters housed 530 victims in Texas last week. “This is nothing that’s going to be over anytime soon,” said Dimetra K. Hamilton, Daniel Brown surveys his damaged house in Friendswood, Texas. He and his family, including special-needs children, fled before the storm. FEMA estimates that about $5.07 billion in federal funding has already been provided for Harvey-related expenses such as temporary housing, home repairs or replacements, National Flood Insurance Program payouts, and low-interest loans for businesses, renters and homeowners. City and county officials are also dipping into local funds. Houston projects its out-ofpocket costs will reach about $1 billion. Houston Mayor Sylvester Turner and Harris County Judge Ed Emmett set up the Hurricane Harvey Relief Fund for victims, raising about $80 million, a spokesman for the mayor said. The final count of homes damaged by Harvey is still unknown, but Harris County officials say more than 136,000 county structures flooded. Houston resident Frank Inselbuch was already in the process of having his home raised under a federal program when Harvey struck, flooding his mode. The Houston Independent School District has six schools closed due to damage. The district estimates repairs will run to $78 million, but officials expect that to increase. Harmony Public Schools, Texas’ largest charter school network, reopened its 19 Houston-area schools on Sept. 11, after closing them for two weeks due to Harvey’s destruction. Teachers and staff increased their home visits to check on students during the closures and have continued their visits since reopening the schools. During one check, school officials found Jessica Villagomez, 25, and her three children living in squalor in temporary housing after being moved from their flooded apartment. Ms. Villagomez was working part time and broke. The school offered her a full-time cafeteria job. “We had lost everything,” Ms. Villagomez said. “I’m thankful for everybody.” Costly Catastrophes The biggest economic losses from natural disasters in the U.S., in billions Hurricane Katrina (2005) Hurricane Harvey* (2017) Superstorm Sandy (2012) Hurricane Maria* (2017) Hurricane Irma* (2017) Hurricane Andrew (1992) Los Angeles earthquake (1994) Hurricane Ike (2008) Hurricane Hugo (1989) San Francisco earthquake (1989) $0 billion Destruction Lost output 50 100 150 Note: Figures are inﬂation-adjusted. *Estimates as of Oct. 27. Source: Moody's Analytics THE WALL STREET JOURNAL. house with about 4 feet of water. It was the third major flood since 2006 for his onestory, 4,200-square-foot home in the Meyerland area of southwest Houston, close to a bayou prone to flooding. Mr. Inselbuch’s home is now lifted about 5 feet, 8 inches higher, paid for in part by a federal grant of $330,000. In total, the lift and repairs to his home are expected to cost around $780,000. An additional $350,000 will be covered by the National Flood Insurance Program. Mr. Inselbuch, who expects to pay about $100,000 himself, said moving wasn’t an option. Southeast Texas school systems also remain in recovery Homeownership Rate Rises in a Tight Market BY LAURA KUSISTO The homeownership rate inched up in the past several months to the highest level since 2014, as more U.S. households are finding a way to buy homes despite limited supply and rising prices. The homeownership rate climbed to 63.9% in the third quarter, up from 63.7% in the second quarter and 63.5% a year earlier, the Census Bureau said Tuesday. The increase isn’t considered statistically significant, but it marks the second consecutive quarterly gain, which suggests upward momentum. Home sales have been sluggish in recent months, while price gains are continuing to accelerate, raising concerns that demand is shrinking. “We’re moving in the right direction in terms of trying to get renters into homes,” said Svenja Gudell, chief economist at Zillow, a housing-data company. “We’re seeing some movement but not as much as you would expect given other indications in the market,” such as strong job growth and low mortgage rates. This release also indicates demand for homes remains strong and buyers aren’t being entirely deterred by the diffi- SWAYNE B. HALL/ASSOCIATED PRESS BY TAWNELL D. HOBBS spokeswoman for the Harris County Engineering Department. “This is the long haul.” Texas employment fell in the wake of the storm, with about 4,400 jobs lost in September, mostly in leisure and hospitality businesses—a 0.4% decline from August, after months of steady growth, according to the Federal Reserve Bank of Dallas. But the bank expects figures to rebound in October and the hurricane’s effect on 2017 employment growth to be minimal. Nationally, economic growth remained strong despite Harvey and the more recent Hurricane Irma in Florida. Gross domestic product expanded at a 3% annual rate in the third quarter, compared with 3.1% annual growth in the second quarter, according to the Commerce Department. The hurricanes likely suppressed business activity such as oil-and-gas extraction in Texas and agricultural production in Florida. But they likely boosted other types of activity, such as emergency services and repair efforts. The Commerce Department said “it is not possible to estimate the overall impact of Hurricanes Harvey and Irma on 2017 third-quarter GDP.” Harvey made landfall Aug. 25, bringing high winds and 4 feet of rainfall in some areas, and submerging up to 30% of Harris County. The storm was blamed for the deaths of 88 people, with five other deaths under review, according to preliminary results from the Texas Department of State Health Services. Texas Gov. Greg Abbott projects the state will need between $150 billion to $180 billion in federal aid to recover. Inventories of new and existing single-family homes are about 20% below the long-term average. culty of finding an affordably priced home to buy. Current inventory levels of both new and existing single-family homes are about 20% below the long-term average. The homeownership rate touched a 50-year low in the second quarter of 2016 and has since increased fitfully. It remains well below the his- toric norm of around 65% and the high of more than 69% reached during the bubble years leading up to the 2008 crash. “It’s struggling to break out,” said Lawrence Yun, chief economist at the National Association of Realtors. “The first-time buyers are getting priced out. Housing is unaf- fordable.” The S&P CoreLogic CaseShiller National Home Price Index, which covers the entire nation, rose 6.1% in the 12 months ended in August—the biggest annual increase since June 2014. The increase in the homeownership rate was strongest in the Midwest, where home prices remain relatively affordable. The homeownership rate there climbed to 69.1% from 68% in the second quarter. The other parts of the country, where prices are increasing much more quickly, saw their homeownership rates remain flat. There are additional indications in Tuesday’s report that households are shifting to owning from renting. The number of owner households increased by 755,000 from a year earlier, while the number of renter households declined by 348,000, according to the Census. That nonetheless suggests that overall household formation is fairly weak, with just over 400,000 households formed in the third quarter. The sharp decline in the number of renter households is a worrying development for apartment-building landlords given that a flood of new rental supply has been hitting the market this year. More is expected to become available into 2018. Economists said they have seen some falloff in demand for apartments mainly because much of the new supply is targeted toward the high end and there is a limited pool of renters who can afford those. Hedge-Fund Founder Gives University $125 Million BY BEN LEUBSDORF DAVID PAUL MORRIS/BLOOMBERG NEWS Thousands without homes after August storm, which caused $73.5 billion in losses The economics department will be named for Kenneth Griffin. The University of Chicago’s economics department will be renamed for billionaire hedgefund manager Kenneth Griffin, who will give $125 million to the university. The Citadel LLC founder and chief executive’s gift, to be announced Wednesday, will be used to pay for more economics professors, expanded financial aid for students and creation of a research incubator, among other things. “You need resources to take long bets,” said John List, the Kenneth C. Griffin distinguished service professor of economics at the university and chairman of what will now be called the Kenneth C. Griffin Department of Economics. Mr. Griffin, who graduated from Harvard University, lives in Chicago and became a University of Chicago trustee in 2014. He said in a statement the university “has transformed our understanding of economics” and its faculty and students “have challenged the status quo to produce pioneering research and path-breaking ideas.” He added: “The culture of rigorous questioning and open discourse at the University of Chicago has opened minds to ideas that have changed the world.” The university, namesake of the Chicago school of economics and long associated with free-market champions like Milton Friedman, is one of the nation’s leading hubs of economic research and thought. Economics is the most popular major and six current Chicago professors are Nobel laureates in economics including this year’s winner, behavioral economist Richard Thaler. The intended gift, coming from the Kenneth C. Griffin Charitable Fund, will be the second-largest in the private university’s history. In 2008, investor David Booth donated $300 million to the business school, which was renamed the University of Chicago Booth School of Business. Mr. List said the gift will expand the department’s size and boost resources for faculty members as well as undergraduates and graduate students. It also will pay for a “research incubator that will fund economists across the campus who we feel are good long bets” but whose research wouldn’t necessarily attract funding from more-traditional sources such as government agencies and foundations, he said. An example of such research, he said, would be the groundbreaking work on social problems by the late Chicago economist Gary Becker, who started in the 1950s outside the mainstream but ended up birthing a “core line of thinking” in economics. Mr. Becker won the Nobel Prize in 1992. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A4 | Wednesday, November 1, 2017 P W L C 10 11 12 H T G K B F A M 1 2 3 4 5 6 7 8 9 O I X X ****** THE WALL STREET JOURNAL. TERROR IN NEW YORK CITY Parade Goes On With Tighter Security New York City’s Halloween parade went on Tuesday night with beefed-up security after the terrorist attack in lower Manhattan. The 44-year-old event in Greenwich Village draws as many as two million annually. It’s known for its outrageous and colorful costumes. “We’ve added more resources, more police officers, heavy weapons teams [and] blocker vehicles on the street leading to the [parade] route,” said Carlos Gomez, the New York Police Department’s chief of department. Mr. Gomez added that heavy weapons teams were also “being deployed throughout the city at key, iconic locations.” Paradegoers said they felt safer knowing there was such a strong police presence. “I had to be here,” said Janet Jones, an East Orange, N.J., resident who has been coming to the parade for more than two decades. Ms. Jones HOLLY PICKETT FOR THE WALL STREET JOURNAL BY CHARLES PASSY Police provided more resources to maintain security for New York’s Halloween Parade, a 44-year-old tradition in the city. came dressed for the occasion, sporting a ghoulish outfit with a zombie-meets-housewife theme. In addition to the city’s efforts, Gov. Andrew Cuomo directed the state police, National Guard, Port Authority of New York and New Jersey, and other government agen- cies, to increase security and personnel at bridges, tunnels, public-transit systems and other crowded areas. His office said the measures are precautionary and not based on any intelligence about terror threats. Mr. Cuomo, who marched in the Halloween Parade with Mayor Bill de Blasio, also directed the One World Trade Center spires to be lit in red, white and blue. Still, some Halloween revelers said it was hard to look past the somber happenings earlier in the day. Lucy Sexton, a dance-theater artist who was passing out candy in front of a Chelsea building, said that while trickor-treaters were keeping her busy, the mood felt different this Halloween. “It seems a little subdued,” she said. Looking beyond Halloween, the city appears ready to go about its business. For example, the New York City Marathon, slated for this Sunday, is still set to take place. Officials with New York Road Runners, the organization that produces the marathon, said in a statement that “we have extensive safety and security measures in place, both visible and behind the scenes.” —Mike Vilensky and Zolan Kanno-Youngs contributed to this article. Eight people were killed when a truck was driven onto a bike path, above; investigators inspect the truck, below; first responders aid a woman who was injured, bottom. Sequence of Events Traveling south on the path, the driver strikes multiple people, killing at least eight. Among the dead were five friends who were visiting New York City from Argentina. trucks that are used to block vehicles. “This is a tragedy of the greatest magnitude,” NYPD Commissioner James O’Neill said. The police officer who shot the driver was identified by a city council member as Officer Ryan Nash. “Here’s the hero cop the world should be talking about,” Councilman Joe Borelli, a Staten Island Republican, said on Twitter. A senior law-enforcement official said the driver entered New York City via the George Washington Bridge, more than 10 miles from the attack site. Over the past two years, Mr. O’Neill said, police have made efforts to prevent vehicle attacks such as the ones that occurred in France and Germany. Mr. O’Neill said there are 148 truck-rental locations in the area and the NYPD has done extensive outreach to those businesses to help prevent attacks. John Miller, deputy commissioner of the NYPD’s counterterrorism and intelligence unit, said in June that there have been about 25 terrorist plots against New York City since the attacks on Sept. 11, 2001, most of which were thwarted. Common targets in- W. Houston St. At 3:05 p.m. the driver of a rented Home Depot truck enters the bike pedestrian path along West Street at West Houston Street. West St. Continued from Page One sioner, Daniel Nigro, said the deaths and serious injuries were caused by the truck, rather than the paintball or pellet guns. Mr. Nigro said six of the eight people killed in the attack were male and were pronounced dead at the scene, and two more were pronounced dead at a hospital. Among the dead were five friends visiting New York City from Rosario, Argentina, according to a statement posted on the Twitter account of the Ministry of Foreign Affairs of Argentina. Another member of the group remains in NewYork-Presby terian/Lower Manhattan Hospital, according to the statement. In a tweet, Didier Reynders, the deputy prime minister and foreign affairs minister for Belgium, confirmed that one of the victims was from Belgium. Three other Belgians were hospitalized, he said. Stuyvesant High School and the Borough of Manhattan Community College are among the schools located in the area; most were temporarily locked down until the scene was secured in the early evening, just hours ahead of the city’s popular Halloween parade, which attracts thousands to the west side of Manhattan not far from where the incident occurred. Mr. de Blasio said at the news conference that the city would deploy additional officers Tuesday evening and in the days ahead, including heavy-weapon teams and sand CRAIG RUTTLE/ASSOCIATED PRESS, DON EMMERT/AGENCE FRANCE-PRESSE/GETTY IMAGES, BRENDAN MCDERMID/REUTERS ATTACK The truck collides with a school bus at Chambers Street. The driver gets out holding a paintball gun and a pellet gun. A nearby police ofﬁcer ﬁres at the driver, hitting him in the stomach. The driver is later taken into custody. Source: NYPD (events); Google Earth (image) cluded Times Square, the Brooklyn Bridge and John F. Kennedy International Airport, he said. The lower Manhattan neighborhood was swarmed with police and trick-or-treaters late in the afternoon. Many children were in costume with their parents. Police blocked off the West Side Highway south of 14th Street and ushered pedestrians away from the scene. Traffic in the area was at a standstill. Witnesses described a chaotic scene Tuesday afternoon as people struggled to figure out the source and nature of the threat. Ezequiel Gonzalez said he was walking west on Chambers Street toward the West Side Highway when a commotion and other pedestrians urged him to stand back. The 18-year-old Columbia University freshman said he saw a truck with a large dent and a white sheet in the street that he believed was a body bag. Tawhid Kabir, a 20-year-old student at the Borough of Manhattan Community College, said he witnessed the final moments when the suspect was shot by police. “He was scared, and he was just running randomly in the street with the two guns,” said Mr. Kabir of the suspect and the imitation weapons police later said he was carrying. “When I heard the shot, then I saw him down on the ground.” Mr. Cuomo told New Yorkers to go on living their lives. “We’re not going to let them win,” he said at the briefing. “Live your life and don’t let them change or deter us in any manner or form.” —Leslie Brody, Mike Vilensky and Shelby Holliday contributed to this article. Ch am be rs St. THE WALL STREET JOURNAL. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 1, 2017 | A5 * * * * * * TERROR IN NEW YORK CITY Trump Calls Attacker ‘Very Sick’ BY JESSICA DONATI President Donald Trump initially tweeted in response to the incident in New York: “Looks like another attack by a very sick and deranged person. Law enforcement is following this closely. NOT IN THE U.S.A.!” An hour later, Mr. Trump appeared to link the attack to the extremist group Islamic State, tweeting, “We must not allow ISIS to return, or enter, our country after defeating them in the Middle East and elsewhere. Enough!” Still later in the evening, Mr. Trump tweeted that he had ordered the Department of Homeland Security “to step up our already Extreme Vetting Program.” White House press secretary Sarah Huckabee Sanders said Mr. Trump had been briefed on the New York incident by White House Chief of Staff John Kelly. No group immediately claimed responsibility for the attack, although a law-enforcement official said police found notes near the suspect’s truck saying that the attack was carried out in the name of ISIS. The SITE Intelligence Group, which monitors and tracks radical groups online, reported Monday that a proIslamic State French media group had called on lone wolf jihadists to carry out attacks on Halloween. Foreign terror organizations have urged such attacks in the past, and as early as 2010 the al Qaeda magazine “Inspire” advocated using heavy vehicles such as trucks to run down civilians. The acting secretary of homeland security, Elaine Duke, said the department was closely monitoring the “apparent act of terrorism.” Central Asia Seen as Terror Source BY JESSICA DONATI AND PAUL SONNE WASHINGTON—Tuesday’s attack in New York has accentuated the growing threat presented by jihadi-inspired terrorism from Central Asia, the onetime Soviet region between Russia and China where little economic opportunity and less political freedom have combined to drive young men toward radicalism. Officials identified the suspect who allegedly mowed a truck through a Manhattan bike path, killing at least eight people and injuring a dozen others, as Sayfullo Saipov, a 29-year-old man of Uzbek origin. Mr. Saipov, in custody at a local hospital after being shot in the abdomen by a police officer, came to the U.S. in 2010 and is originally from Uzbekistan, officials said. A law-enforcement official said police found handwritten notes near the truck saying that the suspect carried out the attack in the name of the Islamic State extremist group. The FBI didn’t immediately comment on whether the Uzbek national, who was a resident of Florida, was previously known to authorities. Uzbekistan has a history of Islamist militancy, centering primarily on the Islamic Movement of Uzbekistan, which has splintered since its founding in the late 1990s, with resulting offshoots allying with the Taliban, al Qaeda and Islamic State. A 2015 report by the International Crisis Group warned that growing numbers of Central Asians were traveling to the Middle East to support or fight for Islamic State, “prompted in part by political marginalization and bleak economic prospects that characterize their post-Soviet region.” The report said ethnic Uzbeks were most numerous among the Central Asians fighting with Islamic State. The report estimated that What We Know About the Suspect Suspect Sayfullo Saipov is seen running in a video taken at the scene of the New York terrorist attack. 2,000 to 4,000 Central Asians in total had joined the Sunni Muslim extremist group. Now, as defeated Islamic State fighters begin to file out of Syria and Iraq, Uzbek nationals pose an added risk in many parts of the world. They have been linked to a handful of terrorist cases in recent years, including in recent incidents in Sweden and Russia. They also had been targeted in counterterrorism operations in the U.S. In 2015 federal prosecutors in New York charged a number of Uzbeks living in Brooklyn with conspiring to join or aid Islamic State. The arrests were the result of an investigation that began after one of them posted to an Uzbek-language website that called for visitors to join the extremist group. Uzbekistan isn’t among the 11 countries targeted by the Trump administration’s immi- Uzbek nationals have been linked to a handful of terrorist cases in recent years. gration policy that focuses on citizens of countries deemed to pose a high risk to U.S. national security and welfare. None of the countries on the SAYFULLO SAIPOV Age: 29 Background: Originally from Uzbekistan, he came to the U.S. in 2010. He has lived in Tampa Bay, Fla., according to law-enforcement officials. Public records indicate he also lived in Paterson, N.J.; Stow, Ohio; Cincinnati; and Fort Myers, Fla. He worked as a driver for Uber Technologies Inc., the company confirmed. An Uber spokeswoman said the company had offered its assistance to law enforcement. Kobiljon Matkarov, who said he was an acquaintance of Mr. Saipov, said they met about five years ago in Fort Meyers. Mr. Matkarov said he was stunned to learn that Mr. Saipov allegedly carried out the New York attack. “I’m confused,” Mr. Matkarov said. “He’s a good person.” Mr. Saipov was taken into custody after he was shot in the abdomen by a police officer. He underwent surgery at a local hospital. —Joseph De Avila list belong to the Central Asian region. The U.S. Department of Homeland Security didn’t immediately respond to a request for comment on whether Tuesday’s attack was likely to influence further iterations of the travel ban, but President Donald Trump indicated changes are possible. “I have just ordered Homeland Security to step up our already Extreme Vetting Program,” he said in a Twitter message Tuesday evening. “Being politically correct is fine, but not for this!” The particular attack chosen by the suspect—driving a truck through an area crowded by pedestrians and cyclists— has been favored in recent terrorist attacks. Foreign terrorist organizations have urged such attacks in the past and as early as 2010, the al Qaeda magazine “Inspire” advocated using heavy vehicles like pickup trucks to run down civilians. Seamus Hughes, the deputy director of George Washington University’s Program on Extremism said all the signs pointed to a jihadist inspired attack, especially as hopes fade for a promised Islamic caliphate. “The attacks take a more urgent need as they lose more and more physical space and a set of supporters that are romanticizing the loss of the caliphate,” he said A photo of Mr. Saipov circulating on social media showed a dark haired male sporting an Islamic-style Sunnah beard. Other attacks linked to Central Asian militants this year have taken place in Sweden, Russia and Turkey. In April this year, a 39-year Uzbek national drove a truck into a crowd in the Swedish capital of Stockholm. The driver was known to the police for failing to report for his deportation. The Uzbek government linked him to Islamic State. The same month, Russian authorities identified an ethnic Uzbek citizen of Russia, who was born in Kyrgyzstan, as the perpetrator of a bombing on the St. Petersburg metro that killed at least 14 people. Authorities said he died in the attack. Months earlier, Turkish authorities identified an Uzbek national as the gunman who opened fire on Istanbul’s Reina nightclub, killing at least 39 people. Islamic State claimed responsibility for the attack. Turkish authorities also said Central Asians from Uzbekistan and Kyrgyzstan were among the assailants in a 2016 attack on Istanbul’s airport, which left more than 40 people dead. Celebrating 10 Years of Amazing Growth. The Barron’s 400 Index has more than doubled since it launched in 2007. That’s better than any comparable broad index of U.S. stocks and 40% better than the market.* Learn more at barrons.com/400 * The Barron’s 400 Index had a cumulative price-only return of 100.8% from August 31, 2007 through August 31, 2017. By comparison, the Russell 3000 Index, used as a proxy for the overall U.S. stock market, had a cumulative price-only return of 71.4% during the same period. Source: Bloomberg. © 2017 Dow Jones & Company, Inc. All rights reserved. 6DJ6046 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A6 | Wednesday, November 1, 2017 THE WALL STREET JOURNAL. WORLD NEWS Ousted Catalan Leader Accepts Spain Vote Head of secession movement vows to abide by elections organized by Madrid BRUSSELS—Carles Puigdemont, the embattled leader of Catalonia’s independence movement, said he would respect the result of regional elections called by the Spanish government, marking a possible turning point in the separatists’ drive for secession. At a press conference Tuesday in Brussels, Mr. Puigdemont said he decided to travel to Belgium to avoid being subjected to an unfair trial back home. Mr. Puigdemont showed up in the city with several ousted ministers from his government, including the former interior minister and health minister, as Spanish prosecutors said they were seeking to charge him and 19 former government and parliament officials with rebellion, sedition and misappropriation of funds. The fate of the Catalonian leader and his region has been in question since its parliament declared independence on Friday and Spain’s central government seized temporary control in response, removing him and about 150 separatistallied officials, including the regional police chief. Despite his defiant stance in Belgium, Mr. Puigdemont’s agreement that pro-independence parties should participate in regional elections shows that separatists are shifting into campaign mode rather than prioritizing the construction of a republic. There had been doubts about whether separatist parties would take part because the Dec. 21 vote was called by a central government whose authority many of them said they no longer recognized. Mr. Puigdemont’s party—one of a number of Catalan separatists YVES HERMAN/REUTERS BY VALENTINA POP Carles Puigdemont said at a press conference in Brussels that he decided to travel to Belgium to avoid an unfair trial back home. Region’s Diplomats Took Fight Abroad BARCELONA—Carles Puigdemont’s bid to draw international support for the independence movement is part of a longstanding separatist policy to promote their cause. Catalonia has maintained delegations to at least 11 countries, including Belgium, where its spacious embassy sits next to EU institutions. Its Public Diplomacy Council of Catalonia, known as Diplocat, has regularly placed articles in foreign newspapers and organized conferences at foreign universities promoting independence. This lobbying has been a major irritant to Madrid. José Manuel García-Margallo, who served as Spain’s foreign minister for five years until November 2016, said he had made it a priority to counteract Catalonia’s efforts. Mr. García-Margallo said he had given his diplomats “very concrete instructions so that they would go out immediately to oppose any type of offensive.” Spanish envoys, for example, have regularly appeared at Diplocat events to argue against the Catalan case for independence. Catalonia’s representatives abroad have played a “distinct lobbying role, promoting economic interests but also trying to frame the political narratives” about their efforts at independence, says Erik Jones, a professor of European studies at the Johns Hopkins School of Advanced International Studies. Mr. García-Margallo said he had devoted particular attention to the Baltic States, Canada and the Vatican, making frequent trips there to discuss the matter. Catalan nationalists have expressed admiration for the Baltic states—Latvia, Lithuania and Estonia—and have looked to their successful breaks from the Soviet Union in 1991 as a model. —Francis X. Rocca groups—said Monday it would participate. “We totally agree that voting is the way to solve problems, not jailing politicians or citizens or threatening civil servants,” he said. The vote “is a challenge we face with all our strength.” Mr. Puigdemont’s appearance in Belgium raised specula- tion he would request asylum, but he said he has no plans to do so. Instead, he and the other former officials were seeking “to reveal to the world the serious democratic deficit that exists in the Spanish state,” as well as Catalonia’s “right to self-determination,” he said. “We don’t want to escape justice,” he said. “We have to face the serious injustice the Spanish government is confronting us with.” Madrid officials say that Mr. Puigdemont’s appearance in Belgium was meant to distract from his repeated breaching of the constitution, and that Spain’s judiciary will afford him and other former Catalan officials a fair trial. For the moment, Mr. Puigdemont is free to travel outside Spain. A judge set a hearing for Mr. Puigdemont and 13 other former Catalan government leaders for Thursday and Friday in Madrid. The prosecutor asked the judge to order Raffinato The Next Great Italian Masterpiece ™ ——— Italy a Vinci’s Mona Lisa, David by Michealangelo, Madame Butterfly by Puccini. Italy has produced some of the world’s greatest masterpieces. And, it’s no secret it is the epicenter of the best metalworking on earth. Which is why we sought out one the best artisans to ever melt precious metals to create yet another great Italian masterpiece. For over two decades, our designer has pursued his passion for making jewelry of great beauty inspired by the Tuscan countryside. The Argento Necklace is his latest masterpiece. And, you can own it for under $80! Each necklace is meticulously made by hand from pure sterling silver and celebrates the traditional woven Byzantine design–– an intricate array of woven links that forms a flexible and elegant drape. 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If Catalan leaders are found guilty of sedition, they could face up to 15 years in prison. If they are found guilty of rebellion, they could face up to 30 years in prison. When asked how long he and his former colleagues might remain in Belgium, Mr. Puigdemont said that “if we have an immediate guarantee of a just treatment...we will return immediately.” Madrid’s temporary takeover has been relatively seamless and central government officials seemed pleasantly surprised by the easy transition. Fears that Madrid would meet Catalan resistance or civil disobedience haven’t materialized. Spain’s Prime Minister Mariano Rajoy’s strategy is for the central government to maintain a low profile in the day-today running of Catalonia, those officials said, and hand back control to Catalan officials as soon as a new government is formed after the elections, regardless of whether separatist or pro-union parties win the vote. If separatist parties win a majority of seats in the regional parliament, that would keep the independence of Catalonia on the table for the foreseeable future. “Madrid is taking away [Catalonia’s] autonomy and giving it back quicker than anyone anticipated,” wrote analysts at Brown Brothers Harriman in a note Tuesday. One recent poll shows a slim majority of Catalans support remaining part of Spain. Belgian Prime Minister Charles Michel said his government didn’t invite Mr. Puigdemont to Brussels, noting that he is free to travel within the passport-free Schengen area. —Laurence Norman in Brussels and Jeannette Neumann and Marina Force in Barcelona contributed to this article. The eurozone economy slowed slightly last quarter, while the annual rate of inflation fell, a combination that will likely reinforce the European Central Bank’s caution as it starts to scale down its stimulus measures. Despite the deceleration, the eurozone economy appears on course for its strongest year since 2007. With the U.S. economy also picking up, that should nudge the global economy toward its fastest expansion since 2014. But there is a missing ingredient in both expansions that is likely to limit their pace and how quickly inflation rises: big wage increases. The European Union’s statistics agency said the eurozone’s gross domestic product grew at an annualized rate of 2.4% last quarter, a slowdown from the 2.6% growth rate recorded in the prior period. Compared with the yearearlier period, GDP was up by 2.5%, its fastest rise since the start of 2011. ECB President Mario Draghi cited an “increasingly robust and broad-based” recovery as justification for his decision to cut the monthly rate of bond purchases to €30 billion ($35 billion) from €60 billion at the start of 2018. Diverging Paths Eurozone growth has picked up in 2017 as inﬂation has slowed. Quarterly GDP growth rate, annualized 3.0% Q3 2017 2.4% Change from previous year in consumer prices 2.0% 2.5 1.5 2.0 1.0 1.5 0.5 1.0 0 0.5 –0.5 0 October: 1.4% –1.0 2014 ’15 ’16 ’17 Source: Eurostat That was seen as a first step toward removing the massive support provided to the economy by policy makers since mid-2014, although Mr. Draghi made it clear the bondbuying program—known as quantitative easing—could be extended again beyond its tentatively scheduled termination in September 2018. The main reason for that caution is that there have yet to be “convincing signs” inflation is heading sustainably higher. That was confirmed by other figures from Eurostat showing consumer prices were 2014 ’15 ’16 ’17 THE WALL STREET JOURNAL. 1.4% higher in October than a year earlier, having increased by 1.5% in September. Policy makers expect the inflation rate to fall steadily through the early months of 2018 as a result of what statisticians call “base effects”—a situation in which rising energy prices a year ago are compared with more static prices now. More worrying for the ECB, the annual rise in services prices slowed sharply to 1.2% from 1.5%, a sign that domestic inflationary pressures have weakened. Islamic State Claims Kabul Attack BY CRAIG NELSON KABUL—A boy suicide bomber blew himself up in the heavily fortified diplomatic quarter of Kabul, killing at least seven people in an attack that deepened concerns about the ability of the Afghan government to secure even the most heavily guarded area of the capital. Islamic State claimed responsibility for the attack, which occurred during afternoon rush hour near the Australian diplomatic mission and less than a half mile from the U.S. Embassy and the military headquarters of the U.S. and its European allies in Afghanistan. Afghan officials didn’t identify the dead and 22 others injured. Police late Tuesday were continuing to investigate how the suicide bomber, believed by authorities to be between the ages of 12 to 14, managed to evade detection, despite additional security measures put in place after a sewage-disposal truck packed with 14,000 pounds of explosives detonated near Germany’s embassy on May 31, killing more than 150 people and wounding more than 400 others. The street where Tuesday’s attack took place has checkpoints at both ends that are manned by government and private security personnel. Waheed Muzhda, a political analyst in Kabul, said corruption in government ministries is the main reason for deteriorating security in the capital. “Security officials are easily bribed with cash to allow the Taliban or Islamic State to go wherever they want with bombs and explosives,” he said. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. NY Wednesday, November 1, 2017 | A6A Transforming Security Through Visibility™ ForeScout, a leading IoT security company, pioneered an agentless approach to network security to address the explosive growth of mobile computing, cloud computing and the Internet of Things. ForeScout now lists on Nasdaq under the ticker symbol FSCT. www.ForeScout.com Neither Nasdaq, Inc. nor its afﬁliates makes any recommendation to buy or sell any security or any representation about any company’s ﬁnancial condition. Investors should undertake their own due diligence before investing. ©2017. Nasdaq, Inc. All Rights Reserved. Business.Nasdaq.com For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A6B | Wednesday, November 1, 2017 NY THE WALL STREET JOURNAL. D E T A N I DO A CHILD’S ABILITY TO READ HAS A BIG IMPACT ON THEIR FUTURE. DONATE AND GIVE THE GIFT OF LITERACY, OPPORTUNITY, AND SELF-SUFFICIENCY. HELP US AT READNYC.ORG #SPREADTHEWORDS For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. WORLD WATCH Central Bank Keeps Yield Target at Zero The Bank of Japan lowered its price forecasts again Tuesday and stuck to its ultra-easy monetary policy. The central bank voted 8-1 to keep its target for 10-year Japanese government bond yields at around zero and its short-term deposit rate at minus 0.1%. “Because inflation is still far away from the bank’s 2% target, I don’t think it’s necessary at this point to hold specific discussions” about raising rates, BOJ Gov. Haruhiko Kuroda said at a news conference. —Megumi Fujikawa MEXICO GDP Contracted In the Third Quarter The country’s economic output declined in the third quarter, its first contraction in 17 quarters as a series of natural disasters had a negative impact on services and brought about further declines in oil production. Gross domestic product, a broad measure of output in goods and services, was down 0.2% seasonally adjusted from the second quarter, and rose 1.6% unadjusted from the yearearlier period, the National Statistics Institute said Tuesday. The decline from the second quarter—which translates into an annualized drop of 0.8%—was led by a 0.5% contraction in industrial output. Services slipped 0.1% and agricultural production rose 0.5%. —Anthony Harrup CANADA Economic Output Shrank in August Gross domestic product declined 0.1% in August to 1.74 trillion Canadian dollars (US$1.36 trillion), Statistics Canada said Tuesday. Market expectations were for GDP growth of 0.1%, according to economists at Royal Bank of Canada. On a one-year basis, Canadian economic output climbed by a respectable 3.5%. —Paul Vieira WORLD NEWS U.S. Weighs Asia Military Exercise Three U.S. aircraft carriers are scheduled to be traveling near the Korean Peninsula soon, and the military may decide to keep them in the area for maneuvers that would coincide with President Donald Trump’s coming visit to Asia, U.S. defense officials said. It would be the first miliBy Jonathan Cheng in Seoul and Nancy A. Youssef in Washington tary exercise involving three U.S. carriers in the area since 2007, officials said, sending a potent message to North Korea at a time of rising tensions over Pyongyang’s nuclearweapons program. Tensions in the region are already heightened. North Korea warned on Monday that the U.S. is “pushing the situation to the point of the worst explosion by massively amassing ultramodern, nuclear-war hardware of all varieties in and around the Korean Peninsula.” Mr. Trump leaves at the end of the week for a twoweek trip that will take him to South Korea, Japan, China, Vietnam and the Philippines. White House officials say the trip is the longest trip to the continent by any U.S. president in more than two decades. Much of the trip will revolve around the threat posed JEON HEON-KY/EPA/SHUTTERSTOCK JAPAN The Japan-based USS Ronald Reagan just completed a visit to South Korea, including Busan, above. by North Korea. Mr. Trump will call on the international community to maximize pressure on North Korea during a speech to the South Korean general assembly, although he won’t visit the demilitarized zone in South Korea, because of time constraints, a senior administration official said. In China, Mr. Trump will meet Chinese President Xi Jinping to seek greater Chinese pressure on North Korea and Continued from Page One the digital currency’s supporters say it is gaining respectability. “It is a legitimization of bitcoin as an asset class,” said Daniel Masters, chairman of the Global Advisors group of companies, which runs a bitcoin hedge fund and exchangetraded notes linked to digital currencies. The move is nonetheless risky for CME, which could face embarrassment if the bitcoin market implodes, as some skeptics predict will eventually happen. There is no guarantee that its bitcoin initiative will succeed. Many new futures contracts introduced by exchanges fail to take off. Still, CME’s plan sent the price of bitcoin surging. After the exchange’s announcement Tuesday, the digital currency’s price rose above $6,400 for the first time, up more than 4% for the day, according to CoinDesk. It has more than quintupled so far this year. Listing bitcoin futures on CME or another U.S. exchange would make it easier to trade the digital currency by allowing market participants to bet on whether its price will fall, something that’s currently difficult to do. Futures allow “long” investors, who think the price of a commodity will rise, to match their bets against “shorts,” who expect a price drop. Introducing bitcoin futures could help smooth out some of bitcoin’s wild price swings, traders say, because it would give bitcoin pessimists more opportunity to express their views in the marketplace. “When you make the market more even-sided—to make it as easy to short as to go long—I think the biggest effect you get is a decrease in volatility,” said Mr. Masters, of Global Advisors. The recent price run-up, along with dozens of launches of digital currency-focused hedge funds in the past year, has sparked interest from Wall Street. Goldman Sachs Group Inc. has said it is considering to “rebalance the U.S.-China economic relations,” the official said. The three U.S. aircraft carriers all are in or headed toward the Western Pacific mainly because of scheduling overlaps, officials said. The USS Ronald Reagan, based in Japan, just completed a visit to South Korea. The USS Nimitz, which deployed to the Persian Gulf on June 1, is currently conducting a port visit in Sri Lanka and will travel through the Pacific on its way back to its home port on the U.S. West Coast. The USS Theodore Roosevelt will replace the Nimitz in the Middle East and currently is en route. It left its home port in San Diego on Oct. 6, and, like the Nimitz, must travel through the region to reach the Middle East. The USS Theodore Roosevelt is currently near Guam. The last time three carrier groups were in the region because of scheduling was in 2011, officials said. The officials said that while the convergence of the ships wasn’t timed to Mr. Trump’s visit to Asia, which begins this weekend, they are considering “taking advantage of the opportunity” and scheduling an exercise. U.S. defense officials said a decision on whether to conduct an exercise would likely be made at “the last minute.” Military officials acknowledge that it is rare to have three of the U.S.’s 11 nuclearpowered aircraft carriers in one region of the world at the same time, but should not be taken as a sign of an impending military confrontation. “It’s not that it’s a pure coincidence, but it doesn’t mean that we’re about to attack,” one official said. Pyongyang warned on Monday that it was keeping a close eye on the influx of U.S. military assets. “The U.S. military action getting all the more hysteric compels the DPRK to take action,” it added, using the acronym for its formal name, the Democratic People’s Republic of Korea. —Michael C. Bender and Gordon Lubold in Washington contributed to this article. Gulf Nations Are Urged to Pressure Pyongyang Trump administration officials, eager to choke off North Korea’s global networks, have By Ian Talley in Doha, Qatar, and Nicolas Parasie in Riyadh, Saudi Arabia in recent days urged Persian Gulf countries to clamp down harder on the nuclear-armed state’s ties to the region. In three days of high-level talks in the United Arab Emir- ates and Qatar, U.S. Treasury officials pushed regional leaders to tighten financial oversight and reduce the number of North Korean laborers working in the region, many of whom are employed in the construction industry. “We had very productive discussions about that and their willingness to work on that,” U.S. Treasury Secretary Steven Mnuchin said in an interview. Mr. Mnuchin’s weeklong tour of the region was focused FROM PAGE ONE TRADE Wednesday, November 1, 2017 | A7 High Rise How many dollars one bitcoin buys $7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 J F M A M J J A S O Source: Coindesk THE WALL STREET JOURNAL. starting a trading operation for bitcoin and other cryptocurrencies. The value of all bitcoins in existence recently surpassed $100 billion and now stands at $106.9 billion, according to coinmarketcap.com. By comparison, the market capitalization of Goldman Sachs is $93.8 billion. Other big players remain skeptical. Mr. Dimon said in September that he viewed bitcoin as a “fraud” that “will eventually blow up.” South Korea and China are among the countries that have tight- The value of all bitcoins in existence recently surpassed $100 billion. ened regulations around digital currencies in recent months. But most market participants say banks would be more likely to trade or make markets in bitcoin if a futures contract takes off. That’s because shorting bitcoin can help a financial institution insure against a price drop. A cryptocurrency trading desk at a bank could turn to the futures market when it wanted to reduce the risk of its bitcoin holdings. Futures could also pave the way for retail investors to get more involved in the digital currency, especially after the Securities and Exchange Commission earlier this year rejected efforts to launch the first exchange-traded fund based on bitcoin. Trading the virtual currency can currently be logistically tricky. Since U.S. brokerages generally don’t offer a way to trade digital currency, people who want to buy or sell it need to set up accounts directly with a bitcoin exchange. There are dozens of such exchanges around the world, many of them small and lightly regulated. But if a major U.S. exchange launches futures tied to bitcoin, investing in the digital currency would become similar to trading commodities, with investors able to use popular retail brokerages. Bitcoin futures could also become the basis for an ETF linked to the digital currency, in much the same way that the United States Oil Fund, the world’s largest crude oil ETF, is built out of oil futures rather than physical barrels of oil. CME traces its history back to 1848, when the first futures markets formed in Chicago to allow farmers and grain buyers a way to trade agricultural commodities. It now runs a huge array of markets, from oil and gas futures to financial contracts tied to interest rates. Tuesday’s announcement sets off a horse race between CME and its smaller crosstown rival, Cboe Global Markets Inc., to see which exchange operator can launch bitcoin futures first. Cboe said in August it was planning to launch bitcoin futures by the end of 2017 or early 2018, pending regulatory approvals. A Cboe spokeswoman declined to comment. Both CME and Cboe are regulated by the Commodity Futures Trading Commission, which would need to sign off on the launch of any bitcoin futures contract. The CFTC has lately been friendlier to bitcoin than the SEC. In July, the CFTC granted a startup called LedgerX approval to clear bitcoin options, making it the first U.S. federally regulated platform of its kind. primarily on improving cooperation to fight terror financing and ratcheting up diplomatic pressure on Iran. But tightening the screws on North Korea is also a priority for the administration, and the Treasury Department has kept an eye on Pyongyang’s ties to the region. In September, President Donald Trump authorized the Treasury Department to impose new sanctions on banks, companies and individuals that help fund the regime in Pyongyang. The North Korean labor contingent in the Gulf, which analysts say consists of between 5,000 and 10,000 workers, is a source of hard currency for Pyongyang. They are part of a global workforce that helps fund Kim Jong Un’s nuclear and ballistic-missile programs, according to defectors, U.S. officials and analysts. In addition to the money generated from the contracted work performed by North Ko- reans, analysts said laborers and diplomats are often also used to carry cash, gold and jewels through financial hubs in the Middle East. North Korea has said such allegations, which have also been documented in United Nations reports, are fabricated. The Trump administration and Japanese officials have urged Gulf states in recent weeks to stop using North Korean labor and comply with U.N. sanctions on Pyongyang. try the best pure cotton white non-iron dress shirt UNBEATABLE INTRODUCTORY OFFER $24.95 reg $89.50 you save 70% • FREE monogramming reg $10.95 • add this pure silk tie for just $19.95 reg $72.50 blue, black, red, yellow, green, orange white 100% wrinkle-free cotton / easy non-iron care 4 collar styles / button or french cuffs regular, big & tall or slim fit sizes paulfredrick.com/best 800-309-6000 use promo code T7HPWA FREE EXCHANGES. new customer offer. limit 4 shirts. imported. shipping extra. expires 12/31/17. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. A8 | Wednesday, November 1, 2017 IN DEPTH Now Coming to a Backyard Near You: Weird Chickens i i i In some flocks, ‘boutique’ breeds that lay blue eggs, look like basketballs are climbing the pecking order Continued from Page One keep their century-old partnership going. Earlier in 2017, Sears sued two longtime manufacturers of its Craftsman tools to keep them shipping merchandise to stores. The supplier turmoil is the sharpest sign yet of Sears’s decline. It has lost more than $10.4 billion since 2011. Annual sales over that period have collapsed to $22.14 billion from $41.57 billion as the company has spun off divisions, closed hundreds of stores and attracted fewer shoppers to its 1,250 remaining Sears and Kmart locations. Employee ranks, above 300,000 a decade ago, have dropped by more than half. Sears is looking to lease out part of its headquarters space, and some amenities that once dotted the six-building campus, including a bank branch and optical shop, have closed. Though Sears is slashing costs, credit analysts say it needs to raise about $1.5 billion a year to fund its operations. On Monday, S&P Global Ratings downgraded Sears’s debt further into junk territory, on concerns the firm could find it hard to repay or refinance $1 billion in loans coming due next year. Analysts say Sears still has assets to sell to keep it afloat. And as long as it continues to pay on time, suppliers are unlikely to abandon it. Many say they want Sears to stay in business but have taken the harder position on payment terms to Sears needs to raise $1.5 billion a year to fund its operations, credit analysts say. protect themselves. A Sears spokesman said the company has taken a number of steps “to remain a viable competitor,” including closing unprofitable stores, negotiating “with vendors to reduce their risk in doing business with us,” investing in its customer-loyalty program and reducing costs. The spokesman, Chris Brathwaite, added that “inaccurate assertions and negative speculation about Sears and its future” have “had a very detrimental impact on the company through mere repetition.” He didn’t reply to specific questions, including about MGA, LG, Samsung and Levi Strauss. After this article published on WSJ.com, Sears said it continues to have strong relationships with thousands of vendors. “Any changes to our agreements over the years have been part of the normal discussions between retailers and Magda, Eva and Zsa Zsa, three Polish chickens named after the Gabor sisters; Eve Tetzlaff holding the rooster Jesus, a Liège Fighter. usual types, creating new hybrids or promoting heritage American breeds. Silkies have fluffy plumage like Big Bird and blue earlobes. Polish Frizzles are nicknamed “pine cone” chickens because they resemble giant ones. Cochins look somewhat like feathered basketballs. “It’s like orchids or tape measures or any other weird thing that people collect,” says Paul Bradshaw, whose Greenfire Farms, in Havana, Fla., supplies what he calls the “ultra-exotic premium chicken market.” As commercial chicken production took off in the U.S. in the 1950s, the number of socalled heritage breeds dwindled in favor of a few fast-growing hybrids, which usually have vendors,” it said in a blog post. At the center of the storm is Edward S. Lampert, the 55year-old financier who rescued Kmart from bankruptcy and then combined it with Sears, Roebuck & Co. in 2005. Partly through his hedge fund, ESL Investments Inc., in which he is the primary investor, the money manager turned CEO is also Sears’s largest shareholder, with 54%. Through ESL, he also oversees a big creditor, holding just under half Sears’s $3.5 billion or so in long-term debt. Sears has been selling real estate and brands to raise cash and Mr. Lampert has pumped in money through short-term loans from his hedge fund. In weekly management meetings, Mr. Lampert pushes executives to drive harder bargains with suppliers, arguing that the vendors need Sears as much as it needs them, people familiar with the matter said. “There have been examples of parties we do business with trying to take advantage of negative rumors about Sears to make themselves a better deal—a deal that is unilaterally in their interest,” Mr. Lampert, who declined to be interviewed, wrote in a May blog post. “In such a case, we will not simply roll over and be taken advantage of.” Spin Cycle Sears no longer has the clout to play hardball. In 2002, it accounted for a fifth of Whirlpool’s revenue. That was down to 3% of Whirlpool’s sales in a recent tally. In the negotiations this year, Whirlpool wanted to reduce its exposure even further by lowering the amount of goods it ships to Sears and raising prices, according to people familiar with the discussions. When the sides couldn’t agree, Whirlpool executives told their Sears counterparts in May they would stop shipping products. In October, Sears notified employees it would no longer carry Whirlpool, Maytag and other brands made by the manufacturer, according to an internal Sears memo. “It’s not a whole lot” of business, Whirlpool CEO Marc Bitzer told analysts. Electrolux AB was once so beholden to its largest customer it paid for Sears executives to fly business class to Asia on factory visits, even though its own executives flew coach, a person familiar with the arrangement said. In recent years, Electrolux has minimized its exposure to Sears by courting other chains, such as Home Depot Inc. and Lowe’s Cos., the person said. “There is a significant sort of reshaping of the North American retail landscape, and that requires us to focus a lot on the right channels,” Electrolux CEO Jonas Samuelson said in April. “We see no viable path for Sears to succeed as a retailer,” white or reddish feathers and lay white or brown eggs. But chickens, like dogs, have “wildly varying looks, as between a chihuahua and a Newfoundland,” says Mr. Bradshaw. He says his typical customer is a woman between 35 and 65 years old, “with a college degree, quite a bit of disposable income, who likes to garden.” Rare chickens are like folk art, he says. Customers see them as embodiments of a simpler time. When Mr. Bradshaw first imported an Indonesian breed called Ayam Cemani, three years ago, a breeding pair sold for about $5,000. These chickens have black feathers, beaks, combs, tongues, skin, organs, bones and meat, but lay white or cream-colored eggs. He also sells Liège Fighter chickens such as Jesus, which can cost as much as $199 for a day-old chick. Another tall breed, the Shamo, which costs $59 and is originally from Asia, is “like having your own pet velociraptor.” By contrast, day-old chicks of more common breeds cost just a few dollars. Texas farmer David Bailey breeds thoroughbred horses, but he began breeding chickens on the side, to help preserve genetic diversity. In the process, he discovered chickens have “big personality… they expect to be picked up and petted.” One of his best sellers is the Swedish Olandsk dwarf chicken, roughly the size of a grapefruit, which lays white eggs “the size of a teaspoon.” City dwellers like their size and will often bring them indoors at night, he said. Backyard efforts have helped improve the status of breeds that could otherwise have become extinct, according to the Livestock Conservancy. The nonprofit’s conservation priority list includes 53 heritage chicken breeds, drawn mostly from a list the American Poultry Association began defining in 1873. About 38 of those breeds are endangered, said Jeannette Beranger, a senior program manager at the conservancy. She clucked at the notion of keeping chickens as pets: “That’s not a career for a chicken.” Instead, she suggests backyard flocks be put to work, as egg-layers, meat providers or for pest control. Kelly Pietro, a 39-year-old who didn’t want them. He sold them to station agents up and down the line and then teamed up with Alvah Roebuck, a watchmaker. The two formed Sears, Roebuck in 1893. Thanks to Mr. Sears’s flair for copy writing, their new mail-order company was soon selling all manner of goods to rural America, including a “Stradivarius model” violin for $6.10, men’s suits for $9.95 and $1,000 kit houses, making luxuries once the province of the city rich available to a wide swath of the population. Sears was one of the earliest and biggest customers of Schwinn bicycles; in the 1920s it bailed out the appliance maker that became Whirlpool. As rural people began moving to cities, Sears began opening large stores, which by the arrival of the post-World War II boom were filled with washing machines, lawn mowers, television sets and other accouterments of middle-class life. Long Decline Sears was struggling before Edward Lampert engineered a merger with Kmart in 2005, but losses have worsened in recent years. $2 billion Net income 0 –2 –4 1985 ’90 ’95 2000 ’05 ’10 ’15 Sears Holdings' share price surged after the Sears-Kmart merger but has tumbled in recent years. $150 120 Sears Holdings 90 Kmart (post bankruptcy) 60 Socks and Stocks Sears, Roebuck 30 0 1972 ’80 ’90 2000 ’10 Once one of the biggest U.S. employers, Sears today has less than half the workers it did a decade ago. Over the last decade, Sears has closed half its Kmart locations and a quarter of its full-line Sears stores*. 400 thousand employees 2,500 stores 2,000 300 1,500 200 1,000 Kmart stores 100 500 0 Sears full-line stores 0 2006 ’10 ’15 2006 ’10 ’15 *Sears store count excludes auto centers, other specialty stores, repair and delivery services. Sources: Thomson Reuters (net income); FactSet (stocks); the company (employees, stores) THE WALL STREET JOURNAL. FOTOSEARCH/GETTY IMAGES SEARS EVE TETZLAFF New Yorkers Eve Tetzlaff and Brian Phillips keep 85 chickens on their 61-acre farm in the Pocono mountains. Not all of them look like typical chickens. There’s the rooster Jesus, with feet nearly as big as a man’s hand. Jesus stands over 2 feet tall and has a chest like a “muscle man,” Ms. Tetzlaff said. His full name is Jesus That’s a Big Chicken. Lucrezia Borgia, named after a 15th-century Roman beauty, has a white crest that falls somewhere between a mohawk and a bouffant. There is a trio of Polish chickens named Zsa Zsa, Eva and Magda, after the Hungarian-American Gabor sisters. And there are three all-black Swedish chickens: a rooster called Mac Daddy, as well as two hens named Ruby Woo and Lady Danger, after lipsticks sold by MAC Cosmetics, the Estée Lauder Cos. unit with an allblack dress code where Ms. Tetzlaff works. “Chickens are beautiful, and I never knew that,” said Ms. Tetzlaff. Visitors to their Pennsylvania farm are amazed to learn the birds are all just varieties of chicken, she adds. Yes, backyard chicken coops have long been a thing. That’s why people are moving on to specialty breeds of all shapes and sizes that sport outlandish plumage, lay colorful eggs or have appealing personalities. “Boutique” chicken companies are scouring the world for un- BRIAN PHILLIPS BY ANUPREETA DAS A Sears in El Paso, Texas, about 1940, when business was good. said Bill Dreher, a financial analyst with Susquehanna Financial Group LLC, one of the few who still follow the company on Wall Street. “I’m concerned that the vendors are starting to lose patience, because that is what put Kmart in bankruptcy in 2002.” To keep products flowing, Sears is paying vendors in one month, on average, compared with two months for Target Corp., Mr. Dreher said. The shorter payment terms tie up working capital, forcing Sears to borrow more and making it harder for the retailer to carry the right levels of merchandise at the right time of year. There might have been no Sears at all if Richard Sears, a 19th-century railway agent, hadn’t received a shipment of watches from a local jeweler By the end of the ’60s, Sears’s annual sales were just shy of 1% of the nation’s gross domestic product with the breadth of an Amazon.com Inc. It operated Sears Auto Centers, owned the Kenmore, Craftsman and DieHard-battery brands, and had a financial-services unit that by the ’80s included Allstate Insurance Co., the Dean Witter brokerage, Coldwell Banker real estate and Discover credit card. Sears no longer owns any but the auto centers, Kenmore and DieHard. Sears was an early internet mover, forming the Prodigy online service with International Business Machines Corp. “The issue really isn’t success or failure,” Sears then-chairman Edward Brennan said in 1989, according to the “The Attention Merchants,” a book about media and marketing. “It’s really a question of how big a success we’re going to be.” Beneath that bravado, Sears was already in decline, facing competition from the likes of Wal-Mart Stores Inc. and Home Depot. Mr. Lampert, who started his hedge fund in 1988 at age 25, took control of Kmart in 2003 out of bankruptcy and then used its stock to acquire Sears. He had some early success when he raised prices and reduced marketing costs, a counterintuitive strategy that boosted profits, said a former senior executive. That led him to believe he could run a chain better than traditional retail executives, the person said. His unconventional approach included minimal investment on store upgrades. Instead, Sears has spent $6 billion repurchasing shares since 2005, at prices as high as $180 a share. The stock now hovers around $6. The result is stores sometimes missing chunks of flooring and with empty shelves. mother of two in Monroe, Conn., acquired a brood of seven unusual chickens twoand-a-half years ago as a birthday present. To get the perfect combination of birds, Ms. Pietro created a spreadsheet that listed her and her husband’s favorite birds, the color of their feathers and eggs, ranked their docility and whether they laid eggs in winter. Her flock includes Speckley, a dark brown Speckled Sussex chicken with bluish dots, and Ollie, who lays olive eggs. “It felt like old-school stock trading,” Ms. Pietro said. Her flock produces as many as seven eggs a day. When the family car pulls up, the chickens will come up to the driveway to greet the Pietros, she said. Traci Torres, chief “eggsecutive” officer of Mypetchicken.com, says her company focuses on breeding chickens that will lay blue, green, chocolate-colored or speckled eggs, all the rage around Easter. She said customers are willing to wait twice as long and pay nearly twice as much for unusual birds or egg layers. She also crossbreeds chickens and is planning a “profusely feathered” one for next year with feathered feet and a cheek tuft, nicknamed the Yeti. “There are people who go out to their backyard with a glass of wine, feed their chickens mealworms … the chickens will fall asleep in their laps,” said Ms. Torres. “Chickens are a really nice antidote to today’s technology-heavy culture.” “The stores are creepy,” said shopper Chris Angelos, with few customers, a limited selection and whole sections closed off in the cavernous location near her home in Gurnee, Ill. The 69-year-old said she shops there anyway because it lets her avoid crowds and park near the front door. In a 2007 letter to investors, Mr. Lampert explained his strategy this way: “Unless we believe we will receive an adequate return on investment, we will not spend money on capital expenditures to build new stores or upgrade our existing base simply because our competitors do.” Ten years later, after breaking off pieces such as Craftsman and the Canadian division, which filed for bankruptcy in June and is being liquidated, Mr. Lampert is undeterred. In October his hedge fund lent Sears another $140 million, bringing its total borrowings from ESL to roughly $1.6 billion. “People have often asked me why I am still committed to the company and why I continue to invest a significant amount of my own money in its ‘transformation,’” Mr. Lampert wrote in a May blog post. “The answer is that I firmly believe we will succeed.” Mr. Lampert keeps his own counsel. He doesn’t go to Sears headquarters more than a couple of times a year, people who have worked with him say. Instead, executives make quarterly treks to Florida, where Mr. Lampert lives on the exclusive Indian Creek Island in a $42 million home. The CEO—who was kidnapped for money in 2003 and held in a Days Inn motel room in Connecticut for 28 hours— rarely visits stores and has urged executives to adopt a similar policy, arguing they can collect more data more quickly by connecting with store managers over videoconferences, former executives say. In recent years, middlemen known as factors have stopped providing vendors with insurance on payments for their shipments to Sears. Many suppliers, even big ones that don’t use factors, have pushed to shorten payment terms to cut their risk. When LG’s contract came up for review in 2015, the companies worked out new terms over nine months. Under the final deal, Sears would pay LG cash upfront before receiving some goods, said people familiar with the situation. In return, Sears gets a small discount. MGA, when it renegotiated its contract last year, cut in half the amount of time Sears has to pay, to 30 days. “We want them to stay in business,” said Mr. Larian, the supplier’s CEO. “But not at risk to MGA.” —Andrew Tangel, Theo Francis and Jim Oberman contributed to this article. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 1, 2017 | A8A NY * * * * GREATER NEW YORK New Jersey Sues Drugmaker Over Opioids Purdue Pharma is accused of deceptively pushing OxyContin as safe for long-term use BY KATE KING AND SARA RANDAZZO New Jersey and Alaska have sued Purdue Pharma LP, alleging in separate lawsuits that the drugmaker used deceptive marketing tactics to push prescriptions of opioid painkillers, fueling an addiction crisis and costing the states millions of dollars. Joining a growing list of states and municipalities, New Jersey Attorney General Christopher Porrino and Alaska Attorney General Jahna Lindemuth said Purdue Pharma employed aggressive and misleading sales tactics that are directly linked to the widespread opioid and heroin addiction crisis. Last year, New Jersey reported more than 2,000 overdose deaths, and the large majority were opioid related, Mr. Porrino’s office said. “When people ask ‘How did we get here, how did we get to an epidemic in New Jersey at this level?’ I think part of the answer lies in the complaint we filed today,” Mr. Porrino said in a release. Alaska, with a far smaller population, said it had 96 opioid-related overdose deaths in 2016, and that the number of such overdoses is climbing. Treatment programs across Alaska report that more than half—and up to 90%—of their heroin-addicted patients started with prescription painkillers, according to the state’s lawsuit. New Jersey’s lawsuit, filed Tuesday in Superior Court in Essex County, alleges that Purdue played down the risk of addiction posed by its opioid drugs, particularly OxyContin, and deceptively marketed the medication as safe for longterm use. The company required its New Jersey sales representatives to visit seven or eight doctors a day, five days a week, and saddled them with sales quotas for OxyContin ranging from 500 to 700 prescriptions a month, according to the lawsuit. Mr. Porrino said the state interviewed “dozens and dozens of people, including people who worked for Purdue” in its investigation to understand the specifics of Purdue’s business in New Jersey. A spokesman for Purdue Pharma said the company de- New York Boogie Ban’s Days Are Numbered nies the allegations. “We are deeply troubled by the opioid crisis and we are dedicated to being part of the solution,” the spokesman said in a statement. “We must balance patient access to FDA-approved medicines, while working collaboratively to solve this public health challenge,” he said, referring to the Food and Drug Administration. Alaska said in its lawsuit, filed Monday in state court in Anchorage, that through its marketing, “Purdue transformed medical thinking about opioids,” persuading doctors that the addiction risk is modest and outweighed by the Trial Puts Mayor On the Defensive FOOTLOOSE: Showgirls cut a rug at a New York nightclub in 1944. The City Council voted Tuesday to repeal a 91-year-old law that barred dancing at most city nightspots. Critics said the so-called cabaret law began as a racist attempt to police Harlem jazz clubs. Brooklyn Building Tapped for Seniors A Florida-based private-equity firm has purchased a high-profile Brooklyn Heights apartment building from the Jehovah’s Witnesses for about $200 million with plans to convert it into luxury senior housing. Executives at Kayne Anderson Real Estate Advisors, of Boca Raton, Fla., said they will spend another $100 million or so to turn 21 Clark St. into a facility for people 65 years and older. Renamed the Watermark at Brooklyn Heights, the 16story building will include about 300 units, 75,000 square feet of common space and amenities such as a swimming pool, spa and several dining rooms. Watermark expects to rent apartments to seniors with a wide range of needs—from those just looking for a place to reside, to others who need medical care for such problems as memory loss. “There is an urban clientele that absolutely wants to be in high-end senior housing and is not looking to relocate,” said Al Rabil, chief executive of Kayne Anderson Real Estate. Other developers have similar projects. A venture of Welltower Inc., a real-estate investment trust, and Houston-based Hines is building a project in Midtown. There is also a project in the works for the Upper East Side by Maplewood Senior Living and Omega Health- care Investors Inc. Analysts said demand is expected to be high for luxury senior housing in coming years, as baby boomers grow older. But they warned that developers could overreact and build too much supply. “We’re on the cusp of seeing a golden moment for demand,” said Michael Knott, an analyst with Green Street Advisors. Kayne Anderson executives said it is too early to predict how much they will charge for apartments. But experts said that high-end senior rentals in New York range from about $7,000 a month for a studio to $10,000 a month for a twobedroom unit, when no special care is provided. With special care, prices can be as high as $20,000 a month. The Jehovah’s Witnesses have been steadily selling properties in Brooklyn Heights in recent years, taking advantage of rising values. Kayne Anderson, which has about $6 billion worth of assets under management, specializes in senior and student housing, and medical office buildings. Mr. Rabil noted that a wide range of demographic trends is likely going to boost demand for senior housing in the future. “Eleven thousand Americans are turning 65 every day,” he said. Watermark is slated to open in about two years, Kayne Anderson executives said. A defense lawyer in a closely watched federal corruption trial sought Tuesday to discredit a former real-estate developer who has made waves in recent days by testifying he bought influence in the mayor’s office. Jona Rechnitz, 34 years old, a former New York real-estate developer, took the stand again Tuesday in Manhattan federal court in the trial of Norman Seabrook and Murray Huberfeld, both 57, who face fraud and conspiracy charges. Prosecutors say Mr. Seabrook, former head of the correction officers union, received $60,000 in an $820 Salvatore Ferragamo bag in exchange for investing $20 million of the union’s money in a hedge fund run by Mr. Huberfeld. Much of the testimony so far in the trial has focused not on wrongdoing by the defendants, but by Mr. Rechnitz, who said he acted as an intermediary between the two men and has himself pleaded guilty to a conspiracy charge. Mr. Rechnitz is also at the center of a sprawling federal corruption probe that unfolded in the city last year, touching the police department and City Hall, as well as the correction officers’ union. No wrongdoing was found in the mayor’s office. Two highranking police officers have pleaded not guilty in a case that emerged from the probe. The NYPD has declined to comment on Mr. Rechnitz’s testimony. Since he began testifying Thursday that he was able to buy influence in the police department and the mayor’s office with well-placed gifts and campaign contributions, Mr. Rechnitz’s stories have sent ripples through the city. Mayor Bill de Blasio, who is poised to win re-election next week, has been forced to address the testimony, calling Mr. Rechnitz a liar. The mayor’s spokesman denied Mr. de Blasio traded in political favors. Mr. Rechnitz testified Tuesday that he was able to buy “access and influence” with campaign contributions to the mayor, including regular phone and email contact with Mr. de Blasio as well as in-person meetings. Defense attorney Henry Mazurek challenged Mr. Rechnitz about his supposed sway in City Hall, questioning him about a failure to successfully call in favors on three occasions. “Your special access to the mayor did not result in anything that a normal citizen wouldn’t be able to accomplish,” Mr. Mazurek said. “I don’t agree with that,” Mr. Rechnitz said. He said he secured other favors that haven't come up in the trial. CHRIS TROTMAN/GETTY IMAGES JOHN LENT/ASSOCIATED PRESS BY THOMAS MACMILLAN BY PETER GRANT drugs’ benefits. The lawsuit claims prescription-drug use in the state has been linked to homicides, assaults, home-invasion theft, prostitution and other crimes. Purdue, a Connecticut-based company, also has been sued by nine other states, including Louisiana, Mississippi, Missouri, New Hampshire, New Mexico, Ohio, Oklahoma, South Carolina, and Washington. New Jersey also has filed suit against Insys Therapeutics Inc., alleging it pushed the painkiller Subsys for widespread use despite having FDA approval to only market the drug to cancer patients. Jona Rechnitz, left, at Madison Square Garden in 2012, testified he was able to buy influence in the NYPD and the mayor’s office. Woolgathering Divas Take Center Stage at Met’s New Opera BY CHARLES PASSY Forget the star soprano of the moment. At the Metropolitan Opera, the reigning divas are three sheep. The animals make a memorable appearance in Thomas Adès’s “The Exterminating Angel,” a contemporary opera that received its North American premiere at the Met last week. The work is based on the surrealist film by Luis Buñuel about a group of elite partygoers trapped inside a home. The sheep, seen on stage as the audience enters the theater, are key to the opera’s strange, unsettling nature. At the onset, it is unclear why the animals are there—and as the work progresses, they figure into the plot in only a small way. But their mere presence almost ensures this isn’t your typical night at the opera. “We are trying to set up an atmosphere,” said Tom Cairns, director of the Met production. Not that it is so easy for an opera company to secure a sheep, let alone a trio of them. For the task, the Met turned to All-Tame Animals Inc., a New York-based company that is a talent agency for all kinds of creatures. Over the years, All-Tame Animals has provided the Met with everything from dogs to donkeys for several productions. The company sourced the Met’s sheep from an upstate New York farm, though All-Tame Animals keeps the trio closer to the Met on performance nights to minimize any stress. Tending to the sheep has its challenges, said All-Tame Ani- mals President Nancy Novograd. As herd animals, they are best grouped together, she added. A sheep that is left alone is a sheep likely to register a noisy protest—not exactly music to an operagoer’s ears. There is also the matter of the sheep’s droppings. To do the necessary cleanup, Ms. Novograd has two trainers, in costume, stay with the sheep on stage. The Met even provides the trainers with a spiffy bucket, Ms. Novograd notes, so not to ruin the visuals with a cheap, plastic receptacle. Animal-rights activists have long protested the use of animals for entertainment. But Ms. Novograd said hers are properly cared for and happy to take part in productions. “I’m not going to yank a sheep on stage,” she added. OYSTER PERPETUAL cosmograph daytona rolex oyster perpetual, cosmograph and daytona are ® trademarks. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A8B | Wednesday, November 1, 2017 NY THE WALL STREET JOURNAL. * *** GREATER NEW YORK METRO MONEY | By Anne Kadet Towns Fret The Maestros of an Iconic Water Tank Over State Budget Cuts BY HEATHER GILLERS The wooden water tower, an iconic fixture on top of New York buildings, hasn’t changed much in more than a century. Below, a spire that is attached to the top of towers made by Rosenwach Tank. workers about a day to replace an old silo. The profession takes years to master, Mr. Hochhauser says. The workers, who often stay with Isseks Brothers for decades, mainly hail from the Caribbean island of Saint Vincent. There’s no such thing as water-tower school. Water tank providers say they must train their own workers inhouse. Mr. Hochhauser runs the company with his brother and sister. It’s been the family business for four generations. He says he’s never done anything else. “I spent a day in dental school,” he recalls. “It didn’t go well.” It’s just as well. A one-daybuild tank, which typically holds 3,500 to 40,000 gallons, fetches $35,000 to $75,000, Mr. Hochhauser says. These days, his company is building two to three towers in New York City every week, he adds. The city’s natural water pressure can push water up to the first six floors. Beyond that, it must be pumped and stored in tanks above the roof so that pressure is supplied by gravity. The city’s other major wood-tank outfit is the Rosenwach Tank division of the Rosenwach Group, also a longtime family operation. Based in Astoria, Queens, the company’s workshop is in Summit, N.J. “Paris has the Eiffel Tower, Pisa has the Leaning Tower, and New York has the Rosenwach Water Tower,” the company proclaims. Online, artisans hawk water-tower posters, coffee mugs, earrings, pendants, silk ties and planters. For a time, a Brooklyn furniture maker offered pricey tables and desks fashioned from reclaimed water-tower wood. Rosenwach hoped to capitalize on the craze with an online store featuring Tshirts, hoodies and tote bags emblazoned with the company’s water-tower logo, “We Tank New York.” Alas, unlike sales of actual towers, the line has yet to take off. “The store has not been well received,” Andrew Rosenwach, the company’s president, laments. “It has turned out to be a tankless effort.” firstname.lastname@example.org Bard Launches Free ‘Microcollege’ in Brooklyn BY LESLIE BRODY The maximum-security inmates who beat a Harvard College team in a debate two years ago put a national spotlight on the prisoners’ ambitious college program, the Bard Prison Initiative. Now Bard College is launching a new satellite in another site that bucks tradition: the Brooklyn Public Library in Prospect Heights. The “microcollege” will be free for students, and aims to attract talented low-income applicants who haven’t sought degrees due to the price tag or personal hardships. The experiment aims to find ways to make college possible for people who are often discouraged, excluded or underestimated. “The way we go about college access in the U.S. is a catastrophic failure,” said Max Kenner, vice president for institutional initiatives at Bard College in Annandale-on-Hud- son. “Everyone in higher education has to be more imaginative and daring in thinking outside conventional ideas about how to locate and engage students.” Mr. Kenner, who also runs the Bard Prison Initiative, said the Brooklyn program was inspired partly by his frustration that so many people were surprised by the intellectual power of prison inmates. “Everyone was amazed,” he said. “We were subject to many jokes in which the punch line is something about a captive audience.” The new microcollege is modeled on the prison program: Bard faculty will teach small seminars leading to a two-year associate degree in liberal arts, with the hope that students will go on to get bachelor’s degrees elsewhere. Organizers plan to open “Bard at Brooklyn Public Library” in January with 16 students from the borough, and grow to about 64 over time. Many cities in Connecticut are reconsidering their spending decisions as they prepare to fill new funding gaps following a two-year, $41 billion state budget agreement that will reduce their state aid. The budget, which was signed by Gov. Dannel Malloy on Tuesday, provided the state’s capital of Hartford with $40 million designed to help that city avoid bankruptcy. But it left other cities with at least $30 million per year less than the previous budget, according to a partial tally of cuts by the Connecticut Conference of Municipalities. The road that runs past town hall in Beacon Falls has cracks and bumps. But plans to repave it will likely have to wait another year because of a $200,000 reduction in funds. “It’s probably been more than two decades since the last time it was refurbished,” said Beacon Falls First Selectman Christopher Bielik. Before lawmakers reached a deal last week, Connecticut was one of just a few states in the U.S. without a package of spending and taxes for the current fiscal year. It is home to one of the wealthiest populations in the U.S. but has been struggling with a way to afford mounting debt and pension obligations. Less money from the state means some local governments will likely have to resort to service cuts or tax increases. One major ratings firm, S&P Global Ratings, said Friday that “weak credit conditions across local governments…could persist for some time” due to reduced amounts of state aid and a stagnant statewide economy. The ratings firm last month placed nine Connecticut municipalities and one school district on negative watch, meaning they have a 50% chance of a downgrade. S&P Global Ratings on Friday said it is waiting to see how those governments address aid reductions in the new budget before de- ciding whether to change their ratings. The cities include Bridgeport, New Haven, New London and Waterbury. The cuts are less severe than what Mr. Malloy had originally proposed, and no Connecticut town will have its state aid cut by more than 5%. But most small towns have already had their state funding drop or remain flat over the past decade while the cost of services has increased, said Betsy Gara, executive director of Connecticut Council of Small Towns. “It has made it more difficult to provide services without relying on property-tax increases,” Some municipalities will likely have to reduce services or increase taxes. Ms. Gara said. A lack of significant commercial development in many areas has left some Connecticut towns particularly dependent on homeowners to raise revenue, she said. Nearly half of the Connecticut municipalities rated by Moody’s Investors Service have already had their credit affected by the state budget crisis. A state fiscal crisis can force local borrowing costs higher. Some cities and towns have already taken action to account for less money from the state. The 8,200-person town of Brooklyn raised taxes in June in anticipation of cuts. In Madison, where state education aid fell from nearly $450,000 to about $420,000, according to the Connecticut Conference of Municipalities analysis, First Selectman Tom Banisch said the town’s shortterm solution will be to dip into its general fund. In the long term, he said, he hopes to expand the town’s property-tax base. “We’re being killed by a thousand cuts,” Mr. Banisch said. GREATER NEW YORK WATCH Keeping Them on Their Toes TIMOTHY A. CLARY/AGENCE FRANCE-PRESSE/GETTY IMAGES CAITLIN OCHS FOR THE WALL STREET JOURNAL (2) David Hochhauser sometimes wonders whether his business— building those anachronistic wooden water tanks dotting the city skyline—isn’t a bit like staying in the video-rental game. After all, the technology behind the tanks providing drinking water and fire protection to the 10,000-odd New York City buildings more than six stories tall hasn’t changed much since the family business, Isseks Brothers Inc., launched in Manhattan in 1890. “Am I missing the big picture?” he asks. “Is this going to be over and I’ll be left scratching my head?” But while many imagine the towers are no longer operative, they are—like a fleet of rooftop zombies—largely functional. The city’s construction boom has increased demand, Mr. Hochhauser says. And due to fire regulations requiring more water, their size has grown. “The tanks are getting bigger and bigger and bigger and more and more and more!” he notes. And more buildings are demanding multiple tanks. A current project on West 57th Street in Manhattan, for example, requires 11 tanks. The construction of a wooden water tower is quite a feat: It looks like a barn raising, only it’s done with a crew on a tiny steel platform 25 feet above the roof. You can’t fit a water tower in an elevator, so the structure’s hundred-odd parts— planks of yellow or red cedar harvested in British Columbia—are cut and numbered in advance, then hauled to the roof. They fit together like a jigsaw puzzle. Construction employs the same techniques used to make whiskey caskets, explains Mr. Hochhauser, whose company also makes bourbon barrels. The average tower lasts 30 years. It takes six BIG NIGHT: Dresden Semperoper Ballet dancers held a dance rehearsal before the opening Tuesday of ‘5’ at the Joyce Theater. ROBERTO COIN BOUTIQUE Westﬁeld World Trade Center Oculus | Main Level C2 New York, NY | 212.287.1299 POIS MOI COLLECTION | robertocoin.com MENENDEZ TRIAL NEW JERSEY Closing Arguments Expected This Week Ex-Coach Charged With Diverting Funds Attorneys in the bribery trial of U.S. Sen. Bob Menendez gathered Tuesday to hash out the legal instructions the judge is to give to the jury before deliberations, a crucial phase of the trial in light of a recent Supreme Court decision that has already prompted the overturning of several public corruption convictions. After eight weeks of testimony, jurors could hear closing arguments from both sides on Wednesday or Thursday. Mr. Menendez, a New Jersey Democrat, is charged with taking gifts from a wealthy donor between 2006 and 2013 in exchange for political influence, including lobbying government officials on behalf of the donor’s business interests. The donor, Florida eye doctor Salomon Melgen, also is on trial. The two men have denied any bribery arrangement and say the gifts are an outgrowth of their longtime friendship. Before jurors hear closing arguments, they will be instructed by U.S. District Judge William Walls on the specifics of the law. —Associated Press A former Rutgers University men’s basketball coach diverted thousands of dollars of public money from a New Jersey park system to a nonprofit he controlled and gave him and his family benefits including free concert tickets, according to an indictment unsealed Tuesday. Kevin Bannon’s attorney, John Furlong, said he is “supremely confident” he will prevail at trial after he was charged with receiving unauthorized benefits for himself and others while leading the Mercer County Park Commission. Mr. Bannon coached at Rutgers from 1997 through 2001, when he was fired after reports surfaced that he forced his players to strip their clothes off if they missed shots during freethrow shooting contests. The indictment alleges Mr. Bannon ran the nonprofit Friends of Mercer County Parks on county time with county employees and used several schemes to divert funds. The Park Commission is a semiautonomous public agency funded by the county. —Associated Press For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. LIFE&ARTS Wednesday, November 1, 2017 | A9 ANTIQUITIES The Online Bazaar for Looted Art A flood of stolen art objects from the Middle East is showing up on Amazon, eBay, Facebook and WhatsApp EARLIER THIS YEAR, Stephennie Mulder was in her office at the University of Texas at Austin when she received a Facebook message from Yemen with pictures of gold coins and an ancient tomb. “I found the treasure in my towns,” read the message from Ahmed Bakil Al Marhabi, who was a stranger to Ms. Mulder. Ms. Mulder, an art history professor, suspected immediately that Mr. Al Marhabi was offering her looted antiquities, part of the growing flood now being peddled on social networks, messaging apps and online marketplaces like eBay and Amazon. “Sending me pictures of a tomb... is pretty gutsy,” said Ms. Mulder, who believes she was targeted because of her participation in antiquities groups on Facebook. Criminals have for years sold illegal goods online. But the growth of social networks and e-commerce platforms, coupled with the recent industrial-scale looting by Islamic State across the Middle East, has brought a stream of stolen antiquities online, often being offered to unsuspecting buyers, according to U.S. and European security officials, antiquities experts and documents seen by The Wall Street Journal. Law enforcement officials say the online outlets have become a vexing challenge as they battle a wave of looting that is stripping heritage sites of ancient artifacts. Revenue from the sales is often used to finance various types of terrorist and criminal groups that also use the trade to launder other illicit income including drug and weapons trafficking, U.S. and European government officials say. “ISIL has been exploiting the potential of social media more and more frequently so as to cut out the middleman and sell artifacts directly to buyers,” the European Commission said in a July report, using an acronym for Islamic State. Every day there are at least 100,000 antiquities for sale online, valued at over $10 million, estimates Neil Brodie, senior research fellow in Endangered Archaeology at the University of Oxford. After researching antiquities offerings at leading online marketplaces, Mr. Brodie estimates that up to 80% of the objects offered have no legal provenance, meaning they are most likely looted or fake. Other authorities say Mr. Brodie’s estimates sound accurate. “Internet sales platforms upgrade the difficulty of the investigations,” said Alberto Rodao Martín, an officer at the criminal intelligence unit of Spain’s Civil Guard police agency. “Now looters in Spain send packages of ancient coins directly to collectors in the U.S. We’re overwhelmed.” Facebook, Amazon, eBay and What’sApp all say they have explicit policies prohibiting the posting of stolen objects and mostly ILLUSTRATION: ROB WILSON BY GEORGI KANTCHEV rely on reports of stolen material. Facebook says when content is reported as stolen, the company removes it from the site. Amazon says those who don’t follow its guidelines are subject to action, including removing their account. Amazon removed an ad for an ancient Roman coin and two others after the Journal contacted the company about the origin of the objects earlier in October. In recent years, eBay has agreed to provide the customs service in countries where it operates with contacts of sellers of suspicious items, according to an anti-terrorism official familiar with eBay’s practices. The company took the action after Western counter-terrorism officials expressed concern that looted antiquities might be ending up on the site. “We have zero tolerance for illicit items like looted antiquities,” said Wolfgang Weber, global head of regulatory policy at eBay. Scrutiny by the European Commission and U.S. officials over the online antiquities trade is likely to add to pressure on social media, ecommerce and messaging apps. They are already being scrutinized by European and U.S. lawmakers for divisive political messages and extremist content. That has led the companies to look at ways to better police their content. In a Facebook exchange with the Journal, the man who identified himself as Mr. Al Marhabi in the A Facebook message, below, from a man in Yemen offering gold coins and other objects. An ad for ‘freshly dug’ Ancient Roman coins on Amazon, right, was taken down after the Journal contacted the company. exchange with Ms. Mulder, said he found the trove last year near a farm in Yemen. Mr. Al Marhabi, who said he was a law student, declined to comment on the legality of his offer. The Facebook spokesman declined to comment on specific postings. The Foreign ministry in Yemen didn’t respond to a request for comment. Experts warn the prevalence of looted offerings today—and the limited online policing—means amateur collectors could easily end up buying looted artifacts online. Tim Haines, 53, an amateur antique collector in Worcestershire, England, says he received a Facebook message from a stranger who identified himself as Salah Abdo in Egypt in August. Mr. Abdo was offering a large, 55-pound stone pharaoh’s head for £22,000 ($29,000) and various ushabti, a type of Egyptian funerary figurine. Mr. Haines, a staff member for a British politician, began messaging with Mr. Abdo. The head “belongs in the Egyptian Museum if it is genuine,” Mr. Haines wrote, according to a copy of the message. “No. I don’t work with this. This is from our land,” Mr. Abdo wrote back. The head is from the “back of Karnak Temple. If you interested we give good price.” In Egypt, all artifacts uncovered after 1983 are the property of the government. Most countries have similar laws. Mr. Abdo didn’t respond to requests for comment. The Egyptian Supreme Council of Antiquities didn’t respond to a request for comment. Mr. Haines didn’t buy the objects because, he says, they were expensive and he suspected they were stolen. He says that amateur collectors have to be extremely attentive to provenance these days. “There’s a lot of illicit material out there now,” he said. He didn’t report the case to Facebook. There have been no publicly documented cases of antiquities looted by Islamic State landing in the U.S., but security officials and art experts suggest a flood of artifacts they believe are from conflict zones being marketed online. Artifacts looted in Syria and Iraq are already moving underground and may not surface for decades, lawenforcement officials say. Between 2010 and 2015, a study by Ute Wartenberg Kagan, executive director of the American Numismatic Society, found a “significant surge” on the global market in the number of coins minted in the reigns of Zenobia, a third-century queen of the Syria-based Palmyrene Please see LOOT page A11 MOVIES HERCULE POIROT GETS A MODERN MAKEOVER BY TOBIAS GREY 20TH CENTURY FOX Kenneth Branagh as Poirot in ‘Murder on the Orient Express.’ IT TOOK NINE MONTHS of indepth mustache analysis to arrive at the right kind of whiskers for the latest screen incarnation of Agatha Christie’s Belgian detective Hercule Poirot. “In terms of real estate on the face what we wanted was to give Poirot more of a truffle-hound, energetic sort of quality,” says Kenneth Branagh. The Northern Irish star and director of “Murder on the Orient Express,” out in the U.S. on Nov. 10, wanted to portray a more vigorous and danger-courting man than any previous incarnation. “As I pored through Christie’s other books, that seemed to be legitimized by Poirot’s history in the Belgian army and the Belgian police force,” he says. Mr. Branagh’s discussions with Christie’s only grandson, Matthew Prichard, who oversees the crime writer’s literary estate, confirmed he was heading in the right direction. They also established how much Christie’s own personality bled into Poirot. “It takes a little to get away from the image that Christie has for many of a surrogate Miss Marple—a bepearled, becardiganed, tweedy dame,” Mr. Branagh says. “But from talking to Matthew, she was a fierier and fiercer character than that.” A scene from the new film in which Poirot stands atop the recently derailed Orient Express pays homage to Christie’s own history as the first English woman to surf upright in Hawaii in 1922. “Murder on the Orient Express,” first published in the U.S. in 1934, became Christie’s eighth detective novel to feature Poirot. It takes place aboard the luxurious Orient Express as it travels through Europe. When a murder is committed, Poirot is persuaded to solve a case in which all of the passengers are suspects. The novel was originally filmed for the screen by Sidney Lumet in 1974 with the English actor Albert Finney as Poirot. It has since been adapted for television in the recently ended, long-running British series “Agatha Christie’s Please see POIROT page A11 THE WALL STREET JOURNAL. A10 | Wednesday, November 1, 2017 LIFE & ARTS MY RIDE | By A.J. Baime Colleen Sheehan, 25, a Ferrari saleswoman from Costa Mesa, Calif., on her 1930 BMW 3/15 DA2 Cabriolet, as told to A.J. Baime. In 2000, when I was 8 years old, my father took possession of the BMW you see here as part of a business deal. The car had belonged to the owner of a famous fast-food chain, and my father thought it would be cute to give it to my twin brother Mick and I. With a lot of help from my dad, we fixed the car up. In 2003, we took it to the Pebble Beach Concours d’Elegance (the most prestigious classic car show in the country). It placed third in its class, and at 11 years old, I became one of the youngest people ever to drive onto the Pebble Beach Concours podium. That ignited a motoring passion that has never left me. BMW was founded in 1916 as an airplane engine manufacturer in Germany. The company started building motorcycles during the 1920s and completed its first car in 1929. We believe our 1930 car is the oldest original-bodied BMW in this country. We have taken the vehicle to numerous car shows and BMW events, and we have never found or heard of an older BMW with its original body in the U.S. These cars are rare today because so many were destroyed during WWII. The story we have been told is that our car was used by German doctors during the war, and it survived. At some point, it found its way to the U.S. As a Ferrari salesperson, I am often driving cars that can shoot past 100 mph with ease. Driving a 1930 BMW is even more thrilling because it is such a change of pace. The car has a roughly 750-cc four-cylinder, with three speeds and 15 horsepower. (That’s where the 3/15 in the name comes from.) Top speed is 35 mph, and that’s if you’re going downhill with a tailwind. Due to the 1930 suspension and steering, keeping the car in its lane is a mission in itself. Every bump moves the car, so you sort of bounce down the road. My favorite thing to do with the BMW is to take it to brunch on a weekend and sit outside, so I can watch the reactions people have when they see it. It sparks joy and curiosity everywhere it goes. TED7 FOR THE WALL STREET JOURNAL A Ferrari Saleswoman’s 35-MPH Escape Colleen Sheehan of Costa Mesa, Calif., in period dress with her 1930 BMW 3/15 DA2 Cabriolet. Ms. Sheehan believes this car is the oldest original-bodied BMW in the U.S. The car with its top down, bottom left. Contact A.J. Baime at Facebook.com/ajbaime. ADVERTISEMENT Showroom To advertise: 800-366-3975 or WSJ.com/classiﬁeds BOATING AVIATION " # $ % & # " ( ' " " " ' ) ' LEASE : 38 * : ; 8 3+ 56 , 76 *86 )' 9 -5 5 THE MART (800) 366-3975 | email@example.com © 2017 Dow Jones & Company, Inc. All Rights Reserved. ! %)-( ( % )- % )- "# $$ %&' % ) "# $$ %&' % ' % ' &4 & &4 & / (800) 366-3975 | firstname.lastname@example.org For more information visit: wsj.com/classifieds LUXURY Buy or Lease for Less Nationwide delivery. We offer all current makes & models for less. Call 7 days. Trades accepted. 877.989.1500 www.LEASEFAX.com © 2017 Dow Jones & Company, Inc. All Rights Reserved. !! ! ! Advertise Today ./ ) , - ( ./ 0 - & * / ( -1 )2( -1 -2 -1 - ( - 34 % )- ( SHOWROOM : < : / ! "# $$ %&' ( )% * )% +, - ( AVIATION For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 1, 2017 | A11 LIFE & ARTS FROM TOP: JACKIE LEE YOUNG; NETFLIX POIROT MUSIC REVIEW | By Jim Fusilli Sounds of the Upside-Down A retro-flavored soundtrack brings the universe of ‘Stranger Things 2’ to life Michael Stein and Kyle Dixon, above, and Millie Bobby Brown as Eleven, left. has a taste for Billie Holiday. In an example of the kind of winking commentary in which the series delights, her yearning “You Better Go Now” plays discreetly as the vodka-soaked Bauman nudges two hesitant teens into spending the night together. Preference in music is a cornerstone of identity and self-confidence. “Who would you rather be friends with? Bowie or Kenny Rogers?” asks the brooding Jonathan Byers, who, comforting his bullied brother, Will, reminds him that it’s much cooler to be a misfit than a conformist. (Spotify users can access playlists for each of the series’ main characters, a nice treat and a way to stay in touch until the third season rolls around.) As they did in season 1, Messrs. Dixon and Stein employ synthesized orchestral and percussion sounds that recall the film music of Vangelis, who scored 1982’s “Blade Runner,” and Tangerine Dream, the German collective whose scores were a dominant influence in 1980s film. But the “Stranger Things 2” score is also close kin to the music of Survive, which, across its three albums, has created a body of work that shares a template with synthesized scores for ’80s horror and sci-fi films. Composed and performed by Messrs. Dixon and Stein with band mates Mark Donica and Adam Jones, Survive’s textured, deliberately retro-minded music is dark, threatening and relentless yet laced with a trace of hope—which is what “Stranger Things 2” required in its score. But in “Stranger Things 2,” the duo goes beyond what they do in the band, as heard on the soundtrack album for season two, out now on the Lakeshore label. “The First Lie” is a moving, soft-pop love theme that might have appealed to mid’80s teens, while “Presumptuous” is bright but bittersweet—styles not in the Survive lexicon. Additionally, the two develop themes GEORGI KANTCHEV/THE WALL STREET JOURNAL Alberto Rodao Martin, an officer of Spain’s Civil Guard police agency in Madrid. LOOT Continued from page A9 Empire, and her son. That surge coincides with the start of the Syrian civil war in 2011 and the rise of various terror groups that have been active in the country. That is “something that most coin collectors and many dealers in the U.S. are largely unaware of,” Ms. Wartenberg Kagan says in the study. The trade of potentially looted antiquities is flourishing across a range of popular online platforms, social networks and messaging apps. Syrian antiquities expert Muhamed Hajj al-Hassan says he often receives pictures of looted objects put up for sale by officials he believes are from ISIS on the encrypted messaging system WhatsApp. A Syrian national, Mr. al-Hassan says he started to trade antiquities in 2015 after being contacted by a top official of Islamic State who sought his archaeological expertise to find Western buyers. He has since denounced the group and declines to say if he is actively trading. This summer, a Syrian trader posted a silver pendant dating from the second millennium B.C. and antique Jewish coins dating from the first century A.D. in a WhatsApp group for antiquities traders that Mr. al-Hassan belongs to. The trader said he was ready to smuggle the goods into Turkey if he found serious buyers, Mr. alHassan said. A spokeswoman for WhatsApp didn’t comment on specific messages but pointed to the company’s terms of service, which prohibit its use for content infringing property rights and other illegal activity. While e-commerce sites have been an important sales channel for the antiquities market for years, the looting trade has increased recently, security experts say, often in full sight. On Amazon, third-party sellers have advertised ‘uncleaned coins’, a tell-tale sign that they might have been recently excavated. Experts refer to such coins as having ‘desert patina,’ a mineral deposit similar to rust that often adheres to metal objects as they decay. A recent advertisement on Amazon offering “One Uncleaned Ancient Roman Coin” for $14.99 depicted dozens of coins covered by such dirt. “Freshly dug,” the ad read. “These coins are straight from the Metal Detector.” “This stuff is certainly illegally looted and smuggled,” said Nathan T. Elkins, associate professor of art history at Baylor University in Texas, referring to these coins and other similar ads he saw on Amazon. Amazon said it removed the Roman coin ad and two others after the Journal contacted the company. Mr. Weber of eBay said he has “learned so much about antiquities in recent years” in his work with law enforcement and archaeologists for more than a decade. When eBay receives a re- that clarify character and bridge the emotional subtext of scenes across the season. One motif, which deploys a popcorn-like synth, reoccurs when characters discover information that drives them to action. Booming drums, generated on synths, enter repeatedly. When I spoke by phone on Saturday with the duo, Mr. Dixon said the big drum sound was its take on how Hans Zimmer emphasizes propulsive action in his scores. While the “Stranger Things 2” music is rooted in the ’80s, some sounds are generated with new software and synths. “Music can become a distraction if it’s too throwback,” said Mr. Dixon. “The audiences can feel the directors’ intent. It can become too kitschy.” Mr. Stein added, “If it’s familiar, it’s not scary. If it’s ambiguous, it is.” With the “Stranger Things 2” score, Messrs. Dixon and Stein once again heighten terror and underscore the intelligence and fidelity of young friends who challenge not only murderous monsters but the roiling emotions of the early teen years. Whether applied subtly or stepping out to confront the audience, the duo’s smart, sympathetic music helps make “Stranger Things 2” a triumph. Mr. Fusilli is the Journal’s rock and pop music critic. port from law enforcement or another source about a potentially illicit object, it starts its own investigation, Mr. Weber said. That typically involves contacting the seller, asking for the object’s provenance and working with law enforcement and experts to verify it. Depending on the outcome of the investigation, eBay could remove the listing, Mr. Weber said. Law enforcement has also had to adapt. Last year, Mr. Martín’s team at Spain’s Civil Guard spotted two ads for Roman amphora for sale on a local Spanish e-commerce site for €2,500 and €300, respectively. “It’s been a week since I took it out of the sea,” one of the ads said. That note gave away its illicit nature “quite stupidly,” Mr. Martín said. An undercover agent contacted the seller over WhatsApp and arranged to meet her in a shopping mall in Malaga, on Spain’s Mediterranean coast. When the seller came with a duffel bag containing three Roman amphora, she was charged and the objects seized, according to a police report seen by the Journal. “Not long ago, our job involved watching looters with sniper binoculars in the bushes,” Mr. Martín said. “Now we’re looking at online ads.” —Benoit Faucon and Valentina Pop contributed to this article. FROM TOP: GENERAL PHOTOGRAPHIC AGENCY/GETTY IMAGES; EVERETT COLLECTION (2) THE COURAGEOUS, hypervigilant, supremely loyal kids of the Netflix series “Stranger Things” are back in “Stranger Things 2,” as are the ruthless monsters from the upside-down and the villainous scientists of Hawkins National Laboratory. And so, too, is the music of Kyle Dixon and Michael Stein, who composed the original score for the nine-part series that was released on Friday. Once again, the duo—members of Survive, an electronic quartet from Austin, Texas—have created a series of cues and themes that do what a great score should: illuminate character, ratchet tension and foreshadow events. They do so entirely through electronic sounds, most, but not all, of which are based on the synthesized music of the mid-1980s. As fans of the series know, music plays a dual role in the “Stranger Things” universe. The obvious one is conveyed by the pre-existing recorded tracks selected by Nora Felder, the series’ music supervisor, that not only confirm the time period—late 1984 this time around—but comment on the characters’ personalities. When Billy Hargrove, the comically overblown bully with a mullet, roars into view in his black Camaro, he’s accompanied by comically overblown music like Ted Nugent’s “Wango Tango.” Parents and their peers tend to favor sappy tunes, though the conspiracy theorist Murray Bauman Continued from page A9 Hercule Poirot” starring David Suchet. The filmmakers’ aim with the new version was to tease out a more rounded Poirot, one who can find joy in simple things, such as reading the novels of Charles Dickens or enjoying a good dessert. “I think one of the things that we can take most pride in with the film is that perhaps for the first time Poirot has an arc,” says the movie’s American screenwriter, Michael Green. This meant showing a Poirot who is less indefatigably himself all the time. “He isn’t yet the perfect version of himself,” Mr. Green says. “He still has lessons to learn that are going to make him an even more accomplished detective in his subsequent investigations.” In the past, Poirot has tended to be portrayed as a detective with supreme confidence in his capacity to crack a case. Previous incarnations weren’t weighed down by the kind of moral doubts that assail Mr. Branagh’s version. The emphasis was also on a more sedentary detective, keeping with Christie’s instruction at the beginning of “Murder on the Orient Express” that “to solve a case, a man just has to lie back in a chair and think.” Mr. Branagh’s incarnation of Poirot’s character is also the first to be invested with a sentimental side. In the film, Poirot keeps a framed photograph of a woman called Katherine, to which he turns when his confidence is down. “In the stories, Poirot once fell for a Russian woman called Vera Rossakoff, which inspired us to come up with Katherine,” Mr. Branagh says. “The mystery of this woman is something we might enjoy considering should there be another movie.” Mr. Green’s own goal when writing the screen- Poirot interpreted by British actors Charles Laughton, above, and David Suchet. play was to ensure there was diversity of race and age across the murder suspects Poirot encounters on the Orient Express. Mr. Green amalgamated the characters of a doctor and a British army colonel in a new character: Dr. Arbuthnot, portrayed by Leslie Odom Jr., is an AfricanAmerican doctor with a military background. “Making the character black allowed him to have a story of how he became a doctor in a time when few people of his race were given the privilege,” Mr. Green says. The new film, which like the novel is set in the 1930s, immediately establishes Poirot’s bona fides as a world famous detective by way of an introductory case involving the theft of a precious jewel. “The opening of the novel had a presumption that people reading it already knew all about the character,” Mr. Green says. The screenwriter wasn’t prepared to take the gamble. “In America, everyone remembers Agatha Christie but not everyone remembers Hercule Poirot as well as they should,” he says. Peter Ustinov as Poirot in 1978’s ‘Death on the Nile.’ THE MOST COMFORTABLE OFFICE CHAIR ON EARTH BORN FROM THE MIND OF KEN OKUYAMA, DESIGNER OF THE FERRARI ENZO AND MASERATI BIRDCAGE SAVE $1000 Visionary design and engineering have come together to produce a chair so ergonomically perfect, so completely re-imagined, that it exists in a category all its own. This is no mere office chair. This is Vaya® 888-233-6933 | positiveposture.com/vayachair For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. A12 | Wednesday, November 1, 2017 SPORTS TENNIS | By Jason Gay Roger Federer Is Still Rocking Hey! Roger Federer was on the phone. “For the most part, this has been a dream, a fairy tale,” he told me. The tennis giant was calling from Switzerland, where he’d won his hometown tournament in Basel for the eighth time, escaping his friendly nemesis, Juan Martin del Potro, in a roller coaster three-set match. “Both of us were a little tired and up and down,” Federer said. “I think I had a little more gas in the tank at the end.” We are close to the end of what has been a staggering 2017 for Federer. After shutting himself down the second half of last year to recover from injuries, Federer was a shock winner at January’s Australian Open—and charged on to have a spectacular comeback campaign. In July, Federer delivered an eighth Wimbledon title, adding to his record of 19 major tournament men’s singles titles. He currently sits at No. 2 in the world rankings. Federer’s 2017 record to date? 49-4. I believe the word is: Yowza. Can we hit pause for a second and acknowledge how nutbonkers this is? The Federer Revival gets my vote for one of the best sports stories of the year. How quickly we’ve all forgotten that long stretch in the middle of this decade in which Federer remained among the game’s top players but…couldn’t…quite…get those Slams. There were heartbreakers and upsets and a lot of talk that he might not get another one. The consensus was that Federer was still good, but he was vulnerable, in his sunset. The mood was a little melancholy—we’d never see Full Fed again. This year, he’s roared back to take those two Slams along with five more singles wins. Sure: struggles and injuries for Novak Djokovic and Andy Murray cleared a path, but anyone who’s been watching knows that the Federer we’ve witnessed in 2017 is a reanimated force: fluid, physical, and freshly dangerous with a bigger-racketed backhand. He’s 36 and playing 26. It’s full-on bananas, a rewrite of the history books. At the same time, age and the need for recovery have made Federer careful. Show- FABRICE COFFRINI/AGENCE FRANCE-PRESSE/GETTY IMAGES Roger Federer’s 2017 record is 49-4. ing up and winging it is not on the menu. He opted to skip the clay court season, a decision that deprived Roland Garros, but looked wise when he played with fresh legs at Wimbledon. He’s decided to skip an upcoming tournament in Paris, a choice that will surely disappoint his French fans—and effectively hand the year-end World No. 1 ranking to his rival Rafael Nadal. It wasn’t an easy call, Federer said. But this is what he needs to do now. “It’s in a tough spot in the calendar for me,” he said. “Basel is an emotional tournament for me, and I always feel very drained. My body needs a rest as well. He sounded unfazed about letting go of the chase for No. 1. “Ever since Rafa won the U.S. Open, I knew it was going to be very, very difficult,” he said. After Nadal played well on the tour’s Asian swing, it became harder, even as Federer won their final in Shanghai (giving FOOTBALL for yet another decade, to the San Francisco 49ers for a second-round pick. There are long-term ramifications not only in New England and San Francisco, but also across the entire league where there could be shifts in the market for the league’s most important position. The 49ers were a quarterback-needy team with gobs of salary cap room—setting them up as a logical bidder for potential free agent Kirk Cousins, who could command a record-setting contract and used to work with current 49ers coach Kyle Shanahan in Washington. The Garoppolo deal wasn’t the only blockbuster. Two playoff contenders made major acquisitions: The Philadelphia Eagles acquired Pro Bowl running back Jay Ajayi from the Miami Dolphins for a fourth-round pick. And the Seattle Seahawks shored up one of the NFL’s shakiest offensive lines BY ANDREW BEATON YOU’RE FORGIVEN if you had no earthly idea that the NFL’s trade deadline was Tuesday, even if you’re the biggest football fan in the world. It’s typically a footnote on the calendar, a forgettable snore. Then this year’s trading season went more berserk than anything in recent history. Concluding with a handful of deadline deals, these moves upended this year’s playoff picture and potentially the landscape of the sport for years to come. The trade with the biggest fallout may have been the one that seemingly came out of nowhere: The New England Patriots sending prized quarterback Jimmy Garoppolo, long seen as Tom Brady’s heir apparent with the potential to extend the team’s dynasty Weather 20s d t Edmonton Eugene 60s 30s Che h y Cheyenne Sacramento Denver an Francisco San 70s Las Ve g Vegas Los A Ange l Angeles 50s 80s Ph Phoenix C d Colorado p Springs Santaa F Fe Alb q q Albuquerque T c Tucson El P Paso 10s 20s 50s 80s Houston l d Orlando 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. International Hi 58 64 88 86 64 52 56 75 94 57 55 Today Lo W 48 pc 50 pc 62 s 76 c 40 s 48 sh 43 pc 63 pc 78 s 43 pc 39 c Tomorrow Hi Lo W 56 46 c 66 51 s 88 66 s 89 73 pc 64 36 s 52 42 c 55 42 c 69 58 r 94 77 s 52 40 pc 49 39 pc 6 7 26 35 8 11 27 13 19 28 25 29 31 32 36 33 34 37 39 44 12 22 24 38 43 10 18 21 40 41 Rain 9 16 23 42 45 46 47 48 49 50 T-storms Stationary Snow 56 57 58 Showers Flurries 59 60 61 52 Miami City Frankfurt Geneva Havana Hong Kong Istanbul Jakarta Jerusalem Johannesburg London Madrid Manila Melbourne Mexico City Milan Moscow Mumbai Paris Rio de Janeiro Riyadh Rome San Juan Seoul Shanghai Singapore Sydney Taipei Tokyo Toronto Vancouver Warsaw Zurich Today Hi Lo W 55 43 pc 59 38 pc 83 66 s 81 72 s 54 44 pc 93 74 pc 68 55 pc 84 56 s 60 43 c 70 48 c 83 78 sh 63 52 pc 76 56 pc 59 44 pc 32 19 sf 95 77 s 58 45 c 75 67 c 90 66 s 67 46 s 86 77 s 66 54 pc 70 53 s 85 77 c 70 59 c 80 71 pc 66 53 pc 48 40 c 52 43 pc 48 45 c 55 36 pc Tomorrow Hi Lo W 57 41 c 61 41 pc 83 69 s 83 71 s 57 47 s 92 77 pc 67 53 pc 86 57 s 57 44 pc 69 49 pc 88 78 c 62 47 c 77 54 pc 59 47 pc 30 20 s 95 77 s 58 45 pc 76 65 s 89 65 s 67 51 pc 86 76 s 66 52 pc 73 56 pc 85 78 t 73 61 pc 84 73 sh 65 57 r 61 46 sh 48 35 r 52 43 r 59 41 pc 53 54 51 55 DROP EVERYTHING! | By Gabriel Stone Across 1 Space in a schedule 5 Conchiglie and capellini 11 Spare tire makeup 14 Talking Heads bassist Weymouth 15 How off-thebooks workers are paid 23 Janis’s husband in the funny papers 24 Bemoans 39 Wizards’ workplace 40 Stand-up guy 60 It’s said to have a long arm 27 Craving 28 Abatements 61 “Huh-uh” 29 Bring to bear Down 1 Put in the overhead bin 32 Meets by chance 33 Stepped down 2 Margarita garnish 34 A bit risqué 3 The United States, in a familiar pledge 37 Dollars for quarters 36 A smattering of 39 Fanatic’s follower 4 Angry kids throw 40 Potential pickle, them for short 5 Cylinder part 41 Thieves’ take 6 Not for 42 Make harmless 7 Skye resident 43 Shin support 8 Tic-___-toe 44 Add a rider to, 9 Be inquisitive say 10 Mariners 31 It merged with Mobil in 1999 46 Scratches (out) 21 Charity for the needy 47 Words from a folder 24 Overindulgent quality 48 Renovation 20 Fought 52 •Concrete barrier erected in the 36 “There is no there 1960s there” writer 55 Sole 37 Expressive dance 56 Travel stopover 22 Graceful bearing 38 It’s A in hexadecimal 57 Designer McCartney Solve this puzzle online and discuss it at WSJ.com/Puzzles. 45 Early times, in poetry 11 Supplied, as computer data 43 Husk-wrapped edibles 35 Id mediators the S&P 500, e.g. 26 Facilitate in felony 30 Projections of bowlers 17 Significant sign 18 25 Stratford’s river 59 Web banners, often 41 •He discusses semantics with Alice in “Through the LookingGlass” 16 Pitching stat •The Nikkei or 58 Seated on 26 •The sole piano instrumental to be a #1 Billboard hit 32 Reception feature s City Amsterdam Athens Baghdad Bangkok Beijing Berlin Brussels Buenos Aires Dubai Dublin Edinburgh 5 15 20 80s Ice Tomorrow Hi Lo W 57 31 pc 81 64 pc 72 59 pc 82 60 pc 66 54 c 59 52 r 54 41 r 65 50 pc 69 50 c 69 51 s 67 56 pc 65 36 s 51 40 r 46 26 pc 75 58 pc 4 17 30 100+ 3 Cold 70s Today Hi Lo W 53 38 c 79 61 pc 58 53 c 83 61 s 47 44 r 52 44 s 57 45 c 70 48 s 53 51 c 69 49 s 65 53 pc 66 39 s 54 44 sh 50 35 pc 63 55 c 2 Tampa 80s 70s 1 14 70s 90s Jacksonville bil Mobile A ti Austin an Antonio San 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 41 32 s 42 30 pc Atlanta 73 55 pc 75 56 pc Austin 80 61 pc 86 68 pc Baltimore 60 52 c 72 56 pc Boise 63 39 s 58 42 c Boston 55 50 pc 66 59 c Burlington 51 44 pc 63 57 r Charlotte 73 53 pc 76 50 c Chicago 48 44 c 59 37 sh Cleveland 48 43 sn 66 51 sh Dallas 80 63 pc 93 62 s Denver 71 39 pc 64 35 pc Detroit 47 43 c 61 42 sh Honolulu 86 74 c 88 74 s Houston 80 68 r 87 70 pc Indianapolis 48 46 sn 64 48 sh Kansas City 55 47 c 63 38 pc Las Vegas 79 58 s 76 54 s Little Rock 65 59 sh 78 60 c Los Angeles 70 57 pc 67 56 pc Miami 81 69 pc 84 71 pc Milwaukee 47 44 c 55 36 sh Minneapolis 38 33 sn 43 27 c Nashville 66 56 c 73 60 c New Orleans 78 67 c 82 66 pc New York City 55 53 pc 69 60 pc Oklahoma City 72 52 pc 79 48 s 50s 60s Pit b h Pittsburgh 60s di p Indianapolis h Omaha p g Springfield hington hi gton D.C. DC Washington Kansas Charles h Charleston Top k Topeka City h d Richmond St.. LLou Louis LLouisville Lou 70s h Wichita gh 70s Raleigh h ill Nashville Charlotte C h l tt Mem phi Memphis C b Columbia Oklahoma kl ma City Warm Atl t Atlanta LLittlee Rockk Birmingham h ll Dallas Jack k Jackson Ft. Worth D Honolulu l l 40s 50s with a star tackle from the Houston Texans, Duane Brown. This deadline was just the boiling point for something the league has typically been 40s 50s t Boston rtford Hartford New Yorkk ew Y Ph hil d lph hi Philadelphia k Milwaukee Detroit t l Buffalo Clevel d Cleveland Ch g Chicago es Moines Chic Des ew Orleans New 80s 30s 60s 30s A t Augusta A ban b y Albany 40s oux FFalls ll Sioux City Salt Lake Lake Cit C T t Toronto pls //St. Pau P Mpls./St. Paul Pierre 60s A h g Anchorage t Montreal ttawa Ottawa Bismarckk i Boise San Diego 20s g Billings Reno 10s ip Winnipeg Helena 50s 70s 0s 40s 30s P d Portland <0 30s Calgary Calgary 40s Seattle Patriots traded Jimmy Garoppolo to the 49ers. missing—a frenetic bonanza of headlinestealing moves, which has always been a hallmark moment during the NBA and MLB calendars. Since August, there have been more trades than during the same months over the last 10 years, according to Stats LLC. Many of these trades over the last few months weren’t trivial minutia, either. They involved some of the best players going to some of the best teams. The Los Angeles Rams got wide receiver Sammy Watkins before the season started from the Buffalo Bills. And the Arizona Cardinals nabbed Adrian Peterson from the New Orleans Saints just a couple of weeks ago. Part of this wave can be attributed to teams having more cap room than ever and more flexibility to add players during the middle of the season. But that’s not the only reason. “It’s part of the new generation of general managers in the league,” said former NFL executive Mark Dominik, who added trading season gets “more exciting every year.” 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. Vancouve Vancouver TRASK SMITH/CSM/ZUMA PRESS THE NFL’S TRADING FRENZY Fed a pristine 4-0 record over Rafa in 2017). “I wish I could have chased [No. 1] more— my only regret is that I couldn’t have chased it more at Cincinnati and the U.S. Open. That was a pity—but Rafa played a full schedule, and he deserves it. I’m OK with that.” He now had another Basel title, and that felt good. Federer’s relationship to the tournament stretches back to his childhood, when he worked as a ball boy. “For me, it was all about being close to the top players, seeing all their rackets, how they would behave during matches,” Federer said. At the time, one of his favorite players was the South African Wayne Ferreira. He remembered “going all the way up in the stands and supporting Wayne…screaming from the top edge of the stadium.” (Later, Federer would become Ferreira’s doubles partner.) I asked Federer about the Laver Cup—the Ryder Cup-style team tennis competition he helped launch this September in Prague, which moves on to Chicago in 2018. Nobody really knew quite what to expect out of this idea—but it turned out to be a delight, especially when Federer and Nadal paired up for doubles for the first time ever. “I am honestly over the moon with it,” Federer said. “Chicago is going to be so cool. I can’t wait.” There’s one last goal on the horizon: a good performance at the ATP World Tour finals in London in mid-November. “If I finish the season strong, and playing well at the World Tour final, I’ll be so happy, regardless of the ranking,” he said. Federer already sounded plenty happy. I asked him if, at any point during this season, he considered walking away from the game. After all, he’d written a perfect last chapter, if he chose to end it. “People asked me about it [after Wimbledon], I was like ‘Yeah, I guess you’re right, it could have been a cool exit,’” he acknowledged. “But it doesn’t need to end in a fairy tale every time. I am happy playing, and we’ll see how it’s going to be. I was never scared of the end. The body and the mind will tell me when it’s enough.” “For the moment, I feel good,” Roger Federer said, not yet ready for a goodbye. 48 What the starred answers do (or did) 12 “Give it ___!” 13 Return payments? 49 Spaghetti ___ puttanesca 19 Negative replies 50 Hit’s opposite 51 Sort 53 Utmost degree 54 Teensy Previous Puzzle’s Solution H A I L A R M Y S K O R V I T H E C WO R S A L I S A T E A B U A C E P L A I H O G B I S L E D E E T B I T S P R A D O R A T R A C E A R E A A X L U G E H A S O T D E D R P E S T I N T O T B O Y E E A B R B T I L E R E F S D A B A M A U O S K E L O C U S T S Y O U D J I B S A D O N I E S Y E L O K I E S E L P A E N R E G L O B S S Y N C H M U N I S I G N P A O S E K For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 1, 2017 | A13 OPINION Trump and the ‘Russia Racket’ The Trump d o s s i e r claims were never exactly plausible. Russian intelligence, to BUSINESS the first oppo WORLD re s e a rc h e r By Holman W. who came Jenkins, Jr. along offering to pay for drinks, would expose its deepest secrets? The claims were so obviously self-serving to those promoting them. They smelled so much like Russian disinformation, if there was a Russian source at all. As far as any reporter has been able to ascertain, Christopher Steele might have made it all up in his London office. David Corn of Mother Jones, one of the few reporters to surface the Steele allegations before Election Day, in a piece last week claimed Mr. Steele approached him “frightened” and “worried” about a Trump presidency. No, he may have told Mr. Corn this, but Mr. Corn doesn’t know what was in Mr. Steele’s mind. Mr. Corn dramatically describes Mr. Steele as stepping out of the shadows reluctantly, impelled by his terrible knowledge. Uh-huh. For all Mr. Corn knew at the time, Mr. Steele and confederates were shopping their wares all over town (as in fact they were). Mr. Corn proceeds to berate the rest of the media for its elementary skepticism last fall, then ends with a fundraising appeal for Mother Jones. Here’s a similarly tendentious example from this week. Harry Litman, a former Clinton Justice Department official, begins his Monday New York Times op-ed by claiming the press “buried” the guilty plea of George Papadopoulos, a “close” Trump adviser. The news wasn’t “buried” and Mr. Papadopoulos wasn’t “close.” Mr. Litman is honest about only one thing. Anyone who rises in public visibility will be besieged by opportunists. Mr. Papadopoulos, a person of considerable youth and little accomplishment, pleaded guilty to one count of lying to the FBI. His lies, by the Mueller task force’s description, concerned only the timing of approaches by persons claiming ties to Russia after Mr. Papadopoulos’s name appeared on a throwaway list of campaign advisers. Notice that the particulars of his case actually belie the theory of meaningful TrumpRussia collusion. But Mr. Litman is a bit of an opportunist himself, willing to inflate the case’s significance in ways he knows are disingenuous to get his name before a Times audience. Sean Keeley of the American Interest magazine has written about the emergence of a “Russian interference racket.” The term is apt. Movie star Morgan Freeman thunders in an online video, “America has been attacked. We are at war.” All too obvious, though, the new group he’s fronting for, the Committee to Investigate Russia, created by Hollywood producer and meathead actor Rob Reiner, cares about Russia only to the extent it can be used to whip the Trump administration. Mark Zuckerberg was right when he described as “crazy” the idea that Russia, amid a deluge of ignored social-media How a rival power became the American political class’s land of opportunism. postings, influenced the election. He has been personally corrected by Barack Obama on his duty to uphold the Democratic narrative. Here’s a question about all this: Has vile, self-interested partisanship brought us so low that we are all basically doing Russia’s work in discrediting U.S. politics? Or is Russia, after all, a bit of a joke, a former superpower sinking in its own corruption and depravity, such that we are uninhibited in exploiting it for domestic advantage? Donald Trump looks more and more like a latecomer, with his flippant, irresponsible invitation to the Kremlin to hack Hillary’s emails. Don Jr., with his “I love it” response to proffered Russia dirt on Mrs. Clinton, stands out now mainly as the one person from whom better shouldn’t have been expected. The Clinton campaign and Democratic Party, we now learn, were spreading money in Moscow watering holes as early as June 2016 for trash talk about Mr. Trump. From the book “Shattered,” we learn how seamlessly her staff later fluffed up a narrative about Russia stealing the election to distract from their own gross blunders. Mr. Trump wasn’t to our taste in presidential candidates, which runs toward the conventional. His outsiderhood brings real costs. Mr. Trump, without deep GOP ties, brought aboard Paul Manafort, who had long since given up domestic politics in favor of influence peddling in lucrative but sketchy venues abroad. But all this is beside the point. Whoever voted for Mr. Trump could not miss his clarion contempt for the existing political class. His voters, at the same time, did not mistake him for a policy expert. In some sense, their vote was a vote of confidence in the system—our institutions and, yes, our existing political class—to accept Mr. Trump as the people’s tribune and guide his actions in a successful direction. And it may still happen. Mr. Trump may yet ride his economy to re-election. The elites may yet have to reconcile themselves to the fact that he’s their only path to getting things done. If so, all this will come because elites continue to give his voters ammunition to feed their contempt. A Bipartisan Plan to Cut Corporate Taxes I wonder if Republicans on the House Ways and Means Committee are inPOLITICS terested in a bipartisan & IDEAS plan that reBy William duces the corA. Galston porate tax rate to 15%, makes the code more progressive, doesn’t deepen the deficit, and is carefully scored? Last year, Eric Toder from the Tax Policy Center, an outfit many Republicans don’t like, and Alan Viard from the American Enterprise Institute, an outfit many Republicans do like, presented such a proposal. The current code, say Messrs. Toder and Viard, is outdated because it has failed to adjust to four major changes in the economic and policy environment: “(1) the increased globalization of economic activity, (2) corporate tax rate reductions in other countries and their shifts to territorial tax systems, (3) the increased share of business assets in the form of intangible property, and (4) the increased share of economic activity in the United States not subject to the corporate income tax.” In agreement with most tax experts, Messrs. Toder and Viard believe that the current corporate code has given U.S. multinational corporations strong incentives to accumulate as much as $2.4 trillion in profits overseas. In addition, U.S.-based multinationals find it easy and profitable to transfer ownership of their intangible assets to their overseas affiliates while crediting the earnings on these assets to jurisdictions with tax rates lower than ours. Even if the U.S. economy were closed to international trade and investment, Messrs. Toder and Viard add, the current corporate tax code still would be structurally flawed. For example, it penalizes equity-funded corporate investment relative to debt-financed investment. Debt-financed investments are taxed only at the individual level (as are investments by pass-through entities), while equity-financed investment is taxed at the corporate level as well. Moreover, dividends are taxed when they are received, while capital gains are taxed only when realized, and in some circumstances not at all. To alleviate these problems Messrs. Toder and Viard propose some fundamental reforms. They would eliminate the current tiered corporate tax system, with its top rate of 35%, replacing it with a flat tax of 15%. They would also scratch the corporate alternative minimum tax. These changes, they demonstrate, would dramatically improve the incentives for both Americans and foreigners to invest in the United States. To avoid massive revenue losses to the Treasury, they would shift most of the tax burden to shareholders. Their proposal would tax dividends and capital gains at ordinary income rates. And to eliminate the imbalance between dividends, taxed when received, and capital gains, taxed only when realized, they would move to a mark-to-market system, with prices averaged (“smoothed”) over a number of years to reduce high volatility. To reduce administrative costs and disproportionate compliance burdens, they would exempt small-asset holders from mark-to-market taxation. How to reduce the rate to a flat 15% without widening the budget deficit. To avoid double taxation, shareholders would receive a tax credit reflecting their share of taxes paid at the corporate level. This would prevent the windfall gains that tax-exempt organizations and retirement funds would otherwise enjoy under this approach. In addition, the authors work through the complex transition issues that real-world tax-writing committees must address. It would be easy to turn their proposal into legislation. Americans would benefit in several ways. A substantial portion of multinationals’ profits stashed overseas would be available for domestic purposes. Foreign holders of capital would be more likely to invest in the United States. Many distortions in the current code would be reduced or eliminated, allowing economic fundamentals rather than tax advantages to shape individual decisions. A portion of the gains from the rate cut (Messrs. Toder and Viard do not specify the share) would go to income from labor. Taxpayers in the top 1% would see a modest increase in their tax burden while everyone else would enjoy a modest decrease. Evaluated on a static basis, the proposal would slightly reduce corporate tax receipts. But because corporations would almost certainly shift a portion of their profits from formerly lower-tax jurisdiction back to the United States, broadening the tax base, receipts would increase from an estimated $28 billion in 2018 to $51 billion in 2025, reducing the deficit relative to current law. In their proposal, Messrs. Toder and Viard leave most corporate tax preferences as they are. This has a political advantage they do not mention: They can slash the corporate tax rate without attacking the most fiercely protected provisions of the current code or widening the budget deficit, which is projected under current law to add $10 trillion to the debt over the next decade. Congressional Republicans, the ball is in your court. That Emoji Burger Is High in Phatic By Tunku Varadarajan G oogle’s CEO, Sundar Pichai, has much on his plate right now as Congress takes a grumpy look at his company’s role in enabling Muscovite malefactors to sway the 2016 elections. Yet Mr. Pichai found time Sunday to announce that he’d “drop everything” to address another very Trump-era crisis. A media analyst with too much free time tweeted that he’d noticed Google’s burger emoji has its cheese layer in quite the wrong place. Google puts the cheese between the lower bun and the beef patty, which, as any grillmaster worth his char will tell you, is eccentric. The cheese should be atop the patty for the best-textured melt. Mr. Pichai, a lifelong vegetarian, may not be the ideal arbiter in these matters. But in truth, the episode is less about the paradigmatic American burger than the manner in which emojis have become a staple of our lives. In the past year alone, two academic books have been published on the phenomenon. “The Semiotics of Emoji” (by Marcel Danesi) and “The Emoji Code” (by Vyvyan Evans) seek to tell us how the “visual language” of smiley faces, hearts and thumbs-up is changing the way we communicate. Google’s CEO tries to figure out who moved his cheese. “Emoji” is, perhaps, the most widely used Japanese word in English among people under 30. Even for older Anglophones it gives other great Japanese loan-words—tsunami, karaoke, haiku—a run for their yen. Contrary to widespread belief, emoji isn’t a semiliterate distortion of an English word; it’s Japanese for “picture-character.” It just happens to be a convenient nearhomonym for “emotion.” One might argue that the scholars cited above are subjecting emojis to too much scrutiny. Mr. Evans cites six core linguistic functions that emojis perform. These are, in his words: substitution, reinforcement, contradiction, meta-comment, emphasis, and discourse management. Mr. Danesi, for his part, emphasizes the “phatic” function of emojis, by which he means that they play a big role in small talk. He speaks of “emoji competence,” which is the ability “to intersperse emoji images into a written text in order to imprint a positive emotional tone into it or to maintain phatic communion with the interlocutors.” Put simply, these academics say emojis help us avoid conflict and add a dash of humor and flavor to increasingly terse online communication. They also urge us to push back against lingual Luddites who argue, in Mr. Evans’s words, that emojis are “a step backwards to the dark ages of illiteracy.” But I have yet to read a coherent critique disputing the idea that emojis are a convenient way of replenishing some of the nuance that has been lost by the depletion of our more conventional vocabularies. Besides, as Columbia University linguistics professor John McWhorter said in a recent TED talk, Western pedants have been complaining about the impoverishment of language since about the year 63, the first recorded instance of Roman lingua-fogeyism. (I suspect the ancient Greeks were at it, too.) So, let us leave Mr. Pichai to resolve the placement of cheese on Google’s emoji burger without further delay. That done, he can get back to the business of our beef with Russia. Mr. Varadarajan is a fellow in journalism at Stanford University’s Hoover Institution. BOOKSHELF | By Joshua Rubenstein The Turn To Tyranny Stalin: Waiting for Hitler, 1929-1941 By Stephen Kotkin (Penguin Press, 1,154 pages, $40) I n the aftermath of Lenin’s death in January 1924, Joseph Stalin—already secretary-general of the Communist Party—emerged as the outright leader of the Soviet Union. “Right through 1927,” Stephen Kotkin notes, Stalin “had not appeared to be a sociopath in the eyes of those who worked most closely with him.” But by 1929-30, he “was exhibiting an intense dark side.” Mr. Kotkin’s “Stalin: Waiting for Hitler, 1929-1941,” the second volume of a planned three-volume biography, tracks the Soviet leader’s transformation during these crucial years. “Impatient with dictatorship,” Mr. Kotkin says, Stalin set out to forge “a despotism in mass bloodshed.” The three central episodes of Mr. Kotkin’s narrative, all from the 1930s, are indeed violent and catastrophic, if in different ways: the forced collectivization of Soviet agriculture; the atrocities of the Great Terror, when Stalin “arrested and murdered immense numbers of loyal people”; and the rise of Adolf Hitler, the man who would become Stalin’s ally and then, as Mr. Kotkin puts it, his “principal nemesis.” In each case, as Mr. Kotkin shows, Stalin’s personal character—a combination of ruthlessness and paranoia—played a key role in the unfolding of events. Forced collectivization was the linchpin of Stalin’s first Five-Year Plan. With the peasants living mostly on small-scale plots, he compelled millions of households to move onto collective farms and sought to turn many peasants into the industrial workers who would build the factories and electric stations needed for crash industrialization. To enforce his plan, he set draconian quotas for the confiscation of “surplus” food and violently repressed millions of so-called kulaks (supposedly betteroff peasants), whom he wanted to exterminate as a class. The consequent famine killed more than five million people in Ukraine, Kazakhstan and Russia’s North Caucasus region. Scholars continue to debate whether the famine in Ukraine, which killed some 3.5 million, was a deliberate aim of Stalin’s policies—intended to destroy Ukraine’s national spirit and culture—or the unforeseen result of his war on the peasantry. Although Mr. Kotkin argues that the famine was “not intentional,” his book makes it clear that Stalin was well aware of widespread starvation and that he responded with remarkable cruelty, sealing Ukraine’s borders to make escape impossible. The Kremlin allowed the famine to deepen, accepting a high number of victims rather than ameliorate its most calamitous effects. Another crisis erupted after the assassination of the Leningrad party chief Sergei Kirov in December 1934. Although many historians, including Robert Conquest and Amy Knight, have argued that Stalin almost certainly orchestrated the crime, Mr. Kotkin accepts the current scholarly consensus that Stalin was not behind Kirov’s murder and that Leonid Nikolayev, a disaffected young worker, carried it out on his own. We may never know what degree of personal obsession, political calculation and ideological zeal drove Stalin to kill and persecute so many. There is no debate, however, over how Stalin exploited the murder. He had always insisted that the country “was honeycombed with wreckers,” as Mr. Kotkin writes, and beset by conspiracies to subvert Bolshevik rule. In the wake of Kirov’s death, Stalin first accused thousands of Communist Party figures of engaging in a conspiracy to kill Kirov and then expanded the purge to encompass tens of thousands of military commanders, state-security personnel and party officials, including leaders of the revolution like Nikolai Bukharin, Lev Kamenev and Grigory Zinoviev. Mr. Kotkin argues that Stalin carried out the purge to “smash his inner circle” and avenge elements within the party that had opposed collectivization, but he doesn’t provide sufficient documentation to buttress the claim. Stalin probably regarded army and state-security officers as the only force that could dislodge him. With the purges under way, Stalin embarked on the Great Terror, a wave of violence that killed more than 800,000 people in the space of 16 months. Among those targeted were the members of ethnic groups—Poles, Koreans, Germans—whom Stalin regarded as unreliable elements, a fifth column that could threaten the regime in case of war. As with all great crimes, we may never truly know what degree of personal obsession, political calculation and ideological fanaticism drove Stalin to order the execution and imprisonment of so many. While Mr. Kotkin discusses foreign-policy developments throughout the book, including the establishment of diplomatic relations with the United States in 1933 and Soviet intervention in the Spanish Civil War in 1936, the final chapters of “Waiting for Hitler” focus on the 1939 Non-Aggression Pact with Nazi Germany. Within days of its signing, the Wehrmacht invaded Poland from the west, and the Red Army soon occupied Poland from the east. It was the pact that created a common border between Germany and the Soviet Union, a miscalculation by Stalin that proved to be nearly fatal to his regime. For the next two years, while cooperating with Germany, Stalin tried in vain to fathom Hitler’s intentions. Mr. Kotkin provides a nearly day-by-day account of diplomatic maneuvers involving the Soviet Union, Germany, England and France, along with urgent intelligence reports sent to the Kremlin beginning in August 1940 arguing that Hitler was planning an attack on the Soviet Union. It is here that Stalin’s paranoia proved momentously damaging. No Moscow intelligence chief, aware that several of his predecessors had been executed, would dare contradict Stalin when he insisted that Hitler could be trusted. The reckoning came on June 22, 1941: Stalin’s disregard of the warnings left his country unprepared for the German attack, the point at which Mr. Kotkin’s third volume will presumably begin. There have been many other biographies of Stalin, but none matches the range of information and analysis that animates Mr. Kotkin’s ambitious project. “Waiting for Hitler” is biography and history on a grand scale—equal in scope to the enormity of the events it describes. Mr. Rubenstein is the author of “The Last Days of Stalin.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com A14 | Wednesday, November 1, 2017 * * THE WALL STREET JOURNAL. OPINION REVIEW & OUTLOOK W Tax Credit Bidding War hen House Republicans roll out come level at which the credit phases out, but their tax reform details this week, sending more money to folks who earn one thing to watch is the trade-off $250,000 a year won’t survive the political between tax credits and process, and the credit will The Rubio-Lee child lower tax rates. The more tax inevitably be phased out as credits they include, the less income rises to avoid subsitax credit will sap growth and reform they’ll be dizing the affluent. The regrowth from tax reform. sult is that a worker who able to afford. The GOP tax blueprint repicks up more hours or finds leased earlier this fall called a better job must consider for an unspecified expansion of the child tax what he loses in credits. These notorious incredit, which now is $1,000 a child. But Sena- fra-marginal tax cliffs are already steep thanks tors Marco Rubio and Mike Lee are demanding to the earned-income tax credit. that the credit “be at least doubled” and apply When Congress is done the credit will also against payroll taxes. This would be bad tax be fully refundable, meaning that it will be a policy and politics. cash transfer, like food stamps, even for those Tax credits for kids—what’s not to like? who pay no taxes. Mr. Lee often laments the The answer is obvious if you step back and rise of bad cultural habits, plenty of which consider the purpose of a tax code. The goal have been fueled by work disincentives in the should be to raise the money needed to fund welfare state. the government with the least amount of ecoA far more efficient way to assist lower-innomic distortion. come taxpayers is to increase the standard deThe simplest system is also the fairest and duction. This doesn’t favor one kind of behavthe most efficient. Politicians who want to ior (having children) over another and it promote social policies can do so via spending doesn’t carry the same damaging disincentive or regulation, but when they lace the tax code effects on work. The GOP blueprint consoliwith special favors they force tax rates higher dates two current standard deductions and and reduce economic growth. To benefit from the personal exemption to create a $12,000 these tax favors, Americans must also behave standard deduction for individuals, with a in ways that politicians require—like buying $24,000 deduction for married individuals fila Tesla—but are not the best for the economy. ing jointly. The point of reform is to return to the first Expanding the standard deduction also tax principles of raising money with the least avoids the rigmarole of applying credits amount of political meddling. against payroll taxes, which defies the princiThe child tax credit is a form of income re- ple of simplicity. That families are paying too distribution—a special favor for some taxpay- much for entitlement programs or in payroll ers that costs the Treasury a bundle in fore- taxes is an argument for reforming Medicare gone revenue. In 2012 the credit cost more or cutting taxes—not creating a new tax comthan $56 billion, according to the Joint Com- plication that will join the mortgage-interest mittee on Taxation. The $2,500 credit Messrs. deduction as politically untouchable. Rubio and Lee have favored would cost more Republicans should note that Democrats than $170 billion annually, according to the are already lining up to outbid the GOP on the Tax Foundation, with no revenue feedback size of child credits. Senators Michael Bennet from higher growth. and Sherrod Brown want to triple the credit That’s more than $1.5 trillion over a de- to $3,000 for children ages 6-18 and make it cade—roughly the equivalent of a 15-point re- $3,600 for five and younger. They see this is duction in the corporate tax rate. The money a way to redistribute income and soak up all would be better deployed in financing lower the revenue room in the budget so tax rates tax rates on capital and labor, which spur in- have to stay higher. The Rubio-Lee Republivestment and risk-taking. Evidence shows that cans are playing into their hands. gains from a corporate rate cut flow to workNo one doubts that raising children is exers in higher wages. The redistributionist pensive, but the best way to help parents is right is pitting “corporations” against parents, with the prosperity that creates opportunity but how do they think people with children and lifts incomes. If Republicans can’t spur earn income? faster growth, a $2,500 check to some families The child credit also discourages work. The won’t convince voters to send the GOP back GOP’s framework suggests increasing the in- to Washington in 2018. T The Terror in Tribeca error came back to New York City Tues- with people, is vulnerable, and New York City day. After killing at least eight people especially so. Tourists come to the city by the and injuring nearly a score with a millions in no small part because virtually every truck, a man jumped out yellcorner of the city teems with The truck as murder ing, as always, “Allahu Akbar life at all hours. Its endlessly (God is great).” distinct neighborhoods are its weapon comes What this attack had in own best show. Tribeca, where to New York City. common with similar truck this attack happened, is one of murders in Europe is that it them. happened in a place normally Most New Yorkers regard filled with everyday life. Almost a mile north it as a small miracle that terrorism’s success in of the World Trade Center, the bike path is usu- the city has been minimal. Of course, it’s not a ally filled with walkers, cyclists, joggers and miracle. Protecting the city’s sprawling tabskateboarders. leaux falls to the New York City Police DepartSuddenly it was strewn with broken bodies, ment, and it must be noted that its record in the as this year in Las Ramblas in Barcelona, Lon- years following 9/11 has been stellar. don Bridge and Stockholm, and in 2016 on BasThe NYPD’s anti-terrorism unit is a model tille Day in Nice and at a Berlin Christmas mar- of relentless vigilance and cooperation with seket. History will remember Islamic State and its curity agencies in the U.S. and in Europe. Vigioffshoots and long-distance recruits mainly for lance and cooperation are the two indispenstheir homicidal cowardice. able tools in ensuring that the terrorist’s world Any large city, its streets and sidewalks filled remains abnormal. O The Press Loves Fusion GPS ne reason so few Americans trust the tigators and even fought a subpoena. Washington press corps is its pattern One of the dirty little secrets in Washington of groupthink that denigrates anyone is that Fusion is a longtime source for journalwho breaks from the convenists, planting political hits Politico fails to disclose that Fusion is paid by third tional wisdom. A classic case is the criticism heaped upon to dig up. Now the that one of our critics parties these columns after we raised press corps is defending its has worked for Fusion. meal ticket, often without requestions last week about special counsel Robert Muelporting honestly about Fusion ler’s ability to fairly investiand how it works. gate the FBI’s handling of the Christopher One example is the story by someone Steele dossier. named Jason Schwartz in Politico on Monday The Beltway boys have lined up in unison to that attacked us for our Mueller editorial. This register their outrage that anyone would dare media enforcer quoted Neil King, identifying question Mr. Mueller or Fusion GPS, the oppo him as a former WSJ editor who slammed our research shop that hired Mr. Steele to dig up work and said “I don’t know a single WSJ dirt on Donald Trump in 2016. This is the same alum who’s not agog at where that edit page herd of independent minds who treated former is heading.” Perhaps Mr. King is agog because FBI Director James Comey as St. Jim while he Axios reported in January that he had joined prosecuted people they didn’t like. . . . Fusion GPS. We warned when Barack Obama nominated So Politico quotes an employee of Fusion to him that Mr. Comey had a history of self-serv- attack The Wall Street Journal for criticizing ing prosecutorial decisions. Only after his polit- Fusion. Even better, Mr. Schwartz didn’t tell his ical interventions damaged Hillary Clinton did readers that Mr. King has worked for Fusion. the idolators open their eyes to Mr. Comey’s Mr. Schwartz also failed to point out that Mr. methods. Now the same crowd wants to nomi- King’s wife, Shailagh Murray, also a former nate Mr. Mueller for secular sainthood, but Journal reporter, worked in the Obama White count us out of the protectorate. Mr. Mueller House. Perhaps Mr. Schwartz understands that deserves as much scrutiny as anyone else in the this kind of political incestuousness is so rougoverning class—especially given the amount tine in Washington that even to mention it of unchecked power he wields. would get him drummed out of the club. Our other sin against media decorum has The Trump Presidency has been disorienting been asking questions about the role played by for many people, as their antipathy causes them Fusion GPS in the 2016 campaign. We learned to lose sight of basic principles and standards. last week that Democrats financed Fusion, which This includes many in the press corps. If reportthen paid Mr. Steele to come up with his dossier ers want to know why Donald Trump finds too that included dubious information about Trump- many willing believers for his false anti-media Russia ties. Fusion tried to keep the names of tirades, they might consider the dishonest reits paymasters secret from Congressional inves- porting of the kind practiced here by Politico. LETTERS TO THE EDITOR Congress Makes It Harder to Stop Pill Mills The premise of your editorial “A Bipartisan Drug Cartel?” (Oct. 25) seems to be that legitimate patients are being subjected to a lack of access to drugs they need to mitigate pain. But there is no reference in the bill passed by Congress to any findings that any patients anywhere have been denied access to medications because of a suspension order issued by the Drug Enforcement Administration. You only cite the Cardinal Health case, which the U.S. attorney in Florida referred to as “Florida’s pill mill crisis,” and resulted in Cardinal agreeing to a settlement of $44 million for that case and a similar case in New York. Congress added a requirement that there be “a substantial likelihood of an immediate threat that death, serious bodily harm or abuse of a controlled substance will occur in the absence of an immediate suspension of the registration.” In practice it means that the distributor’s lawyers have a new means to avoid the suspension. The original purpose of the law was to allow quick action in the broad interest of public health and safety. By adding specific requirements, the burden on the DEA is much more difficult, and the original purpose of the law is essentially gutted. Today, before an immediate suspension order (ISO) can be issued, the distributor of drugs must be given an opportunity to submit a corrective action plan, and this plan must be submitted not less than 30 days after an order is issued. This is then submitted to a labyrinthine bureaucratic process which would take months or years to complete while a “pill mill” operation continues. This is what sophisticated lobbyists do. They draft language that is apparently in the public interest, but in practice serves only the interests of their clients. ROBERT HARKEY Atlanta The cited change in the Controlled Substances Act didn’t occur until April 2016, whereas opioid deaths rose from 3,785 in 2000 to over 34,000 in 2015, so the change couldn’t be responsible for the opioid epidemic. The use of ISOs by the DEA declined from 65 in 2011 to eight in 2016. Opioid deaths skyrocketed. It became harder for DEA agents to get ISOs and more people died. With cumulative opioid deaths since 2002 century at 287,000 and rising, the change in legislation couldn’t have come at a worse time. STEVEN MARTIN Richardson, Texas Mr. Martin is a retired DEA supervisory special agent. The Acid-Rain Playbook Worked Beneficially Rupert Darwall has a valid point about the political difficulties in assessing or attenuating the effects of changes in world-wide climate (“Climate Alarmists Use the Acid-Rain Playbook,” op-ed, Oct. 26). However, he attempts to demean the real problems of acidification of the environment that resulted from the unregulated burning of “dirty” fossil fuel and the successes of reasoned regulations. It is uncontestable that the burning (oxidation) of organic matter with relatively high amounts of sulfur and nitrogen produce heat, SOx and NOx along with COx and water among other more minor compounds. The acidic oxides of sulfur, nitrogen and carbon all produce more acidic water when dissolved. SOx and NOx are far more acidic than carbon dioxide. In fact, as he states, natural water is slightly acidic due to carbon dioxide, but the effects of SOx and NOx can and have made rain, snow, particulate matter and water from 10 to more than a 1,000 times more acidic with negative consequences for living systems. The effects of these byproducts of fossil-fuel use in power generation were extremely well documented and severe throughout Europe and North America. Any “hysteria” was likely a result of media representations, not the workings of science. Nature is deaf and blind to human logic and consensus. The 2011 National Acid Precipitation Assessment Program Report to Congress clearly states that reasonable regulations have been successful in reducing emissions of SO2 and NOx from power generation. As a result of these reductions, air quality has improved, providing significant human health benefits, and acid deposition has decreased to the extent that some acid-sensitive areas are beginning to show signs of recovery. JAMES S. FALCONE JR., PH.D. Deerfield Beach, Fla. Banning Surgery for the Obese and Smokers Laura Donnelly writes in London’s Oct. 17 Daily Telegraph (“Notable & Quotable,” Oct. 23) about Britain’s National Health Service’s proposal to “ban patients from surgery indefinitely unless they lose weight or quit smoking.” Studies in the U.S. have shown surgery in the morbidly obese and smoker groups have worse outcomes. On the administrative (funding) side, instituting such a plan would decrease total patients in surgical queue, improving statistics. However, this is only one of the NHS’s problems. In the June 10 Telegraph she said: “The statistics show that 3.78 million patients are now waiting for NHS treatment—a rise of more than 50% since 2012.” Ms. Donnelly cited the president of the Royal College of Surgeons who said, “Too many patients are waiting excessively long for sur- Stocks Displace the Cards Bob Greene’s “When Ballpark Fan Favorites Strike Out” (op-ed, Oct. 24) reassures me that, at 72 years old, I am not the only one who has bought baseball cards after all these years. I was hoping for an Aaron Judge card to leave to my heirs but, alas, it wasn’t to be. I’ll just have to continue relying on the stock market for growth potential. RAY HACKINSON Ozone Park, N.Y. CORRECTIONS The student population of the San Antonio Independent School District is 91% Hispanic and 6% African-American, and more than 90% are eligible for free or reduced-price lunches. These figures were misstated in the Oct. 28 Cross Country column, “Charter and Traditional Schools Find a Common Purpose in Texas.” i i i An Oct. 23 cultural commentary on Dizzy Gillespie, “Dizzy Gillespie: Serious and Showy,” included an image of one of his trumpets belonging to the Smithsonian, but it was not the same instrument mentioned in the article. Letters intended for publication should be addressed to: The Editor, 1211 Avenue of the Americas, New York, NY 10036, or emailed to email@example.com. Please include your city and state. All letters are subject to editing, and unpublished letters can be neither acknowledged nor returned. gery and our concern is we will only see the situation worsen as the impact of NHS England’s decision to deprioritize the 18-week waiting time target takes hold.” The U.K.’s Office for Budget Responsibility reports that the planned NHS funding falls far short of what will be needed. It appears that the NHS is having major problems and trying to fix them with Band-Aids. I’m sure we will find out soon if this plan to delay surgery for smokers and the obese leads to a smaller queue for surgery. It won’t fix funding, understaffing and delays in other areas of care. MICHAEL P. CARTER, M.D. Savannah, Ga. Who will be deemed culpable if the patient who is obese or a smoker expires during the waiting interim? DEE TEZELLI Seattle Why Did the Talc Suit Get So Far in the First Place? Regarding your editorial “A Talcum Powder Tort Blowout” (Oct. 27): I am heartened by the reversal of the insane $417 million jury verdict against, of all things, baby powder. But since the lawsuit was based entirely on bogus legal theories and junk science, why didn’t the original trial judge throw it out before trial, on summary judgment, instead of wasting taxpayer resources on an unnecessary trial? MARK PULLIAM Austin, Texas Pepper ... And Salt THE WALL STREET JOURNAL “It’s that Silicon Valley foundation – they want to know if we’ll match our grandson’s $100 million donation.” For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 1, 2017 | A15 OPINION By Luther Lowe T his week some of America’s most beloved internet companies will follow the footsteps of Big Tobacco and Wall Street in a dreaded rite of passage: the Capitol Hill perp walk. The top lawyers for Google, Facebook and Twitter will try their best to explain to the Senate Intelligence Committee how misinformation spread through their platforms in the months leading up to the 2016 election. They are also likely to argue that the best response to their platforms’ negligence is not government regulation. If Google and Facebook are lucky, the result will be the passage of the bipartisan Honest Ads Act, Anticompetitive practices by Google and Facebook made foreign election interference possible. which would merely require buyers of online political advertisements to reveal their identities. This is a necessary move to increase transparency, but it is not sufficient to protect the electorate from manipulation. Focusing on the narrow question of online advertising will only distract lawmakers from the true problem: In the absence of rigorous antitrust enforcement, the consumer internet has become too concentrated in a few dominant companies, creating easy targets for bad actors. There is a reason Congress did not have to investigate foreign meddling after the 2008 or 2012 elections. Back then the internet was still a diverse, decentralized network. Anyone could create a website or blog to satisfy the demand for popular or niche content. This older form of online community building has largely been supplanted by tools provided by the dominant players. Facebook Groups allows people to create communities without requiring much technical skill. It does, however, require a Facebook account, meaning participants have no choice but to share their identity and their data. Today, many internet services are inaccessible unless you have joined Facebook’s “community” of two billion users. Google used to be the engine that drove the open web. In a 2004 interview, co-founder Larry Page denounced powerful intermediaries on the internet, saying that “we want you to come to Google and quickly find what you want. Then we’re happy to send you to the other sites. In fact, that’s the point. The portal strategy tries to own all of the information.” Over time, Google’s philosophy shifted in the opposite direction, making the internet less open and pluralistic than even a few years ago. Now people are nudged to stay on Google.com. The company has committed to presenting a single “answer” to every inquiry, even ones that are subjective opinions based on sparse Google-owned content, like “best pediatrician NYC.” The result has been a decline of traffic to swaths of the web. Facebook’s walled garden is even more stringent, requiring all thirdparty content accessed from its app to run through its frame. As web activity is drawn within the confines of these two tech giants, so is the revenue that follows. CHAD CROWE It’s Time to Bust the Online Trusts Of every new dollar spent in online advertising last year, Google and Facebook captured 99 cents. Yet neither company has ever faced serious antitrust scrutiny in the U.S. A fleeting opportunity to foster competition came in 2011, when the Federal Trade Commission opened an investigation into Google’s conduct. But the FTC closed the case in 2013 without taking meaningful action. Regulators ostensibly decided to settle after being persuaded the marketplace was adequately competitive, but the assumptions baked into their conclusion have not aged well. When the investigation was begun in 2011, smartphones were a nascent product and Google’s market share of internet search was 66%. Today, most search traffic has migrated to smartphones— nearly 4 in 5 Americans own one— where Google has 97% market share. The economics have also changed for internet startups hoping to reinvent the web. Early-stage capital has dried up, dropping more than 40% since 2015, as investors have become pessimistic that any new Googles and Facebooks will ever be capable of disrupting the deeply entrenched incumbents. The internet has turned into a pair of walled gardens, offering economies of scale for attackers. Ad dollars from Google products like YouTube and AdSense provide economic incentives to “content farms” that peddle misleading or outright false news. Russia Today, Moscow’s official English-language television network, is a “premium partner” on YouTube, entitling it to higher shares of revenue from advertisements sold by Google. A quick estimate—multiplying standard rates of revenue-sharing by RT’s view counts—suggests Google could be sending the Russians seven-figure annual payouts. Facebook has already identified at least $100,000 spent by Russians on its platform to influence voters. Paid ads have the ability to amplify the virality of the fake content. This suggests a feedback loop optimized for mischief: monetize on Google, and spend the proceeds to propagandize on Facebook. Policy makers can solve this problem by compelling large information firms to embrace interoperability. Instead of trying to own everything, Google could power its local searches with services like TripAdvisor, ZocDoc and Yelp. This would dilute Google’s position as an advertising monopoly and help smaller players to compete. Facebook could allow users to export their full social graph, which would allow them to bargain for better terms from new social startups. Such efforts would diffuse information once again across the web, ensuring that future attempts at malfeasance cannot scale. For the most egregious examples of anticompetitive conduct by a dominant internet firm, antitrust enforcers should fight to spin off newer business lines that leverage the legacy platform. If regulators find that Facebook is using its social data to foreclose competing messaging apps, they should consider structurally separating the company’s social and messaging functions. Instead of steering users to its house products, Google should rely on its merit-based algorithms to power services like local search. Requiring transparency for political advertising online is a good step, but it isn’t enough. Until the structural problems in the technology markets are addressed, American voters will continue to consume information from a pair of barrels— Google and Facebook—in which we are much easier to shoot. Mr. Lowe is vice president of public policy at Yelp. Resist the Temptation to Politicize Sex Scandals Back in 1999, I went to see the Kevin Spacey film “American Beauty” twice, but I only saw it once. On the first atUPWARD tempt, I made it to MOBILITY my seat just in time By Jason L. for the coming atRiley tractions, only to notice a large gray rat scurrying up a carpeted wall a few feet away from my head. I tapped my date on the shoulder, and we made our way to the lobby, where I told a manager what I’d seen. She listened without expression, apologized and gave us a refund. Clearly, we weren’t the first people to inform her that the theater had an infestation problem. On Monday Mr. Spacey became the latest Hollywood figure in recent weeks to be accused of sexual assault, and by this point the public is probably as shocked as that theater manager. Even Mr. Spacey’s ifI-did-it-I-was-drunk defense had a familiar ring. Mel Gibson blamed his anti-Semitic rants on alcohol. If Mr. Spacey is to be believed, too much liquor also makes grown men throw themselves on top of 14-yearold boys. Some claim the sex scandals that have bedeviled the Catholic Church stem from sexual repression among the clergy, so what explains similar shenanigans in libertine Tinseltown? It’s been speculated that “Suburbicon,” a new film directed by George Clooney and starring Matt Damon, tanked at the box office over the weekend because moviegoers wanted to punish the two men for perhaps knowing more about Harvey Weinstein’s lecherous behavior than they’ve let on. Maybe so, but it’s hard to believe that a nation that put Donald Trump, warts and all, in the White House would use guilt by association to punish two of Hollywood’s biggest stars. Besides, the movie opened to mediocre reviews— The Journal’s Joe Morgenstern called it “not only unfunny, a bad sign for a black comedy, but deepdyed dislikable.” Maybe the critics were right. Because our national conversations have become so hyper-politicized, there’s a temptation to view these recent sex scandals through a partisan lens, whether they involve entertainers like Mr. Spacey or media figures like Bill O’Reilly. And many of us, including the accused, have given in to temptation. Mr. Weinstein initially attempted to turn The left’s excuses for Bill Clinton’s predatory behavior greased the skids for Donald Trump. an apology to his victims into a condemnation of Mr. Trump, even though the past 30 years of the movie mogul’s life appear to have been one long lived-out Trump “Access Hollywood” tape. But as more victims feel comfortable coming forward, the accusations are tainting individuals of every political stripe: progressive magazine publishers, liberal literary critics, left-wing political journalists, as well as conservative cable news personalities. Political preferences don’t seem to correlate very neatly with personal behavior. How did we get to this point? Ann Althouse, the University of Wisconsin Law School professor emerita and prolific blogger, has offered an explanation as plausible as any, and she contends that it has a lot to do with political expediency. “My hypothesis is that liberals—including nearly everyone in the entertainment business—suppressed concern about sexual harassment to help Bill Clinton,” she wrote in an October blog post. “Giving him cover gave cover to other powerful men, and the cause of women’s equality in the workplace was set back 20 years.” She added: “Are these allegations coming out now because Hillary Clinton lost the election and the time for covering for Bill Clinton is over at long last?” Good question. If Ms. Althouse is right, Mr. Clinton’s predatory behavior—and the left’s response to it—didn’t just make Mr. Weinstein’s antics more acceptable than they otherwise might have been. The former president also greased the skids for someone like Donald Trump. PostClinton, a presidential candidate’s character became much more of a secondary consideration for voters. This is one reason so many were willing to look past Mr. Trump’s misbehavior on the campaign trail and are still willing to give him a pass today. A Gallup poll released Monday put Mr. Trump’s approval rating at just 33%, and a Wall Street Journal/ NBC News survey from last week put his approval rating at 38%. In both polls, those are all-time lows for the president. Yet more than 8 in 10 GOP voters continue to approve of Mr. Trump’s job performance, which is why his Republican detractors in Congress, such as Sens. Jeff Flake and Bob Corker, are so few and far between. Their critiques of the president are apt, but they’re not what the GOP faithful want to hear. Continuing fallout from Special Counsel Robert Mueller’s Russia probe obviously could change the president’s fortunes for the worse, while successful tax-reform legislation might change them for the better. But right now, Republican voters are standing by their deeply flawed president. And to anyone who wants to harp on those flaws, they have a ready response: Compared with whom? The Deception Behind Those In-Network Health ‘Discounts’ By Keith Lemer H ere’s a strange paradox: Health-care costs have increased by an unsustainable rate of about 8.5% each year over the past decade, according to PwC’s Health Research Institute. Already, the average employer-based family health insurance plans costs more than $18,000 annually. But Medicare spending has been relatively stable. Over the past three years, the program’s payouts to hospitals have increased by only 1% to 3% a year, roughly even with inflation. The prices paid for some core services, such as ambulance transportation, have actually gone down. To see what’s happening, we can start by pulling back the curtain on how preferred provider organizations do business. A PPO is a network of preferred health-care providers such as doctors and hospitals, typically assembled by an insurance carrier. In theory, the insurer can save money for its customers by persuading providers in the network to discount their services in exchange for driving volume to their facilities. UnitedHealthcare Choice Plus, for instance, boasts that its PPO—a network of more than 780,000 professionals—cuts the cost of typical doctor visits by 52%, while saving 69% on MRIs. Pull back the curtain, and you’ll see these discounts are an accounting trick. To allow PPOs to advertise big discounts, providers simply inflate their billed charges on a whole range of services and treatments. Don’t insurers have a natural incentive to keep provider prices down, even if they don’t end up paying the list price? PUBLISHED SINCE 1889 BY DOW JONES & COMPANY Rupert Murdoch Executive Chairman, News Corp Robert Thomson Chief Executive Officer, News Corp Gerard Baker Editor in Chief William Lewis Chief Executive Officer and Publisher Matthew J. Murray Deputy Editor in Chief DEPUTY MANAGING EDITORS: Michael W. Miller, Senior Deputy; Thorold Barker, Europe; Paul Beckett, Washington; Andrew Dowell, Asia; Christine Glancey, Operations; Jennifer J. Hicks, Digital; Neal Lipschutz, Standards; Alex Martin, News; Shazna Nessa, Visuals; Ann Podd, Initiatives; Matthew Rose, Enterprise; Stephen Wisnefski, Professional News Paul A. Gigot, Editor of the Editorial Page; Daniel Henninger, Deputy Editor, Editorial Page WALL STREET JOURNAL MANAGEMENT: Suzi Watford, Marketing and Circulation; Joseph B. Vincent, Operations; Larry L. Hoffman, Production EDITORIAL AND CORPORATE HEADQUARTERS: 1211 Avenue of the Americas, New York, N.Y., 10036 Telephone 1-800-DOWJONES DOW JONES MANAGEMENT: Mark Musgrave, Chief People Officer; Edward Roussel, Innovation & Communications; Anna Sedgley, Chief Operating Officer & CFO; Katie Vanneck-Smith, President OPERATING EXECUTIVES: Ramin Beheshti, Product & Technology; Jason P. Conti, General Counsel; Frank Filippo, Print Products & Services; Steve Grycuk, Customer Service; Kristin Heitmann, Transformation; Nancy McNeill, Advertising & Corporate Sales; Jonathan Wright, International DJ Media Group: Almar Latour, Publisher; Kenneth Breen, Commercial Professional Information Business: Christopher Lloyd, Head; Ingrid Verschuren, Deputy Head In fact, no—at least not since the Affordable Care Act took effect. That law established a “medical loss ratio,” which requires insurers covering individuals and small businesses to spend at least 80 cents of every premium dollar on medical expenses. Only 20 cents can go toward administrative costs and profit. (For insurers offering large group plans, the MLR rises to 85%.) If a provider raises the cost of a blood test or medical procedure, insurers can charge higher premiums, while also boosting the value of their 20% share. Insurers can make more money only if they lower their administrative expenses or charge higher premiums. In this way, the MLR rule encourages insurers to ignore providers’ artificial price hikes. Insurers can continue to attract customers with the promise of steep discounts through their PPO plans—and providers can continue to ratchet up their prices. By hoodwinking their customers, both insurers and providers make more money. Since insurance costs are merely a derivative of health-care costs, the result has been a steady rise in insurance costs for millions of working families. ObamaCare’s medical loss ratio creates incentives for insurers and providers to hoodwink customers. For employers caught in this price spiral, there is a way out: partial or full self-insurance. When businesses self-insure, they pay employee health claims directly. That creates an incentive for businesses to question— and push back on—providers’ price increases. Self-insuring businesses can strengthen their leverage by using “reference-based pricing,” which caps payments for “shoppable”—nonemergency—services at the average price in a local market. Members who Notable & Quotable: Church Mark Tooley writing about George Washington’s church in Alexandria, Va., which is removing a plaque honoring Washington: This kind of church invariably attracts a demographic that is nearly all middle and upper class, educated, socially liberal urban white people. Churches that stress their welcomewelcome-welcome message of inclusion over a firm orthodox theological message typically are, whether realizing it or not, actually welcoming some and discouraging others. In my visits to Christ Church I have noticed the well-dressed congregation is not very diverse. Removing the Washington and [Robert E.] Lee plaques will not likely expand its demographic. On Christmas Eve I almost always arrive early at Christ Church and sit in the Washington family box. FDR and Churchill with Eleanor sat there on New Years’ Day 1942 and heard the sermon regret America’s sinful isolationism before Pearl Harbor while praying for victory against Nazi and Japanese militarist aggression. Churchill wept as the congregation sang The Battle Hymn of the Republic. use providers with prices below the limit receive full coverage. If they use a provider that charges more than the limit, they pay the difference outof-pocket. This setup creates a strong incentive to control costs: Patients have a reason to shop around for the best value, while providers are pressured to keep their prices below the cap. The most expensive doctor is not always the doctor with the best outcomes. That’s what happened when the California Public Employees’ Retirement System adopted a referencepricing approach a few years ago. The agency had noticed that provider charges for hip and knee replacements varied from $15,000 to $110,000. In 2010, Calpers established a reference price of $30,000 for the procedures. Predictably, patients flocked to providers charging that price or less and shunned higher-cost facilities. Over the next couple of years, the number of California hospitals charging below $30,000 for a hip replacement jumped by more than 50%. In the first year Calpers saved an estimated $2.8 million on joint replacements. What worked for Calpers can work just as effectively for small and midsize businesses. Today’s medical inflation is exactly what one would expect from health policies that reward insurers and providers for raising prices. Employers shouldn’t accept this status quo. By self-insuring and setting their own referencebased reimbursement, businesses can sidestep the traditional insurance model that continues to bleed them dry. Mr. Lemer is CEO of The WellNet Healthcare Plan, a health-care services company. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. A16 | Wednesday, November 1, 2017 WORLD NEWS Beijing’s New Mao Is a Party of One SHANGHAI—Communist systems show no mercy to political losers. Liu Shaoqi, one of Mao’s designated successors, died on a prison floor in his own filth. Another, Lin Biao, perished in a plane crash fleeing China. Power transfers are how one-party systems threaten to come unstuck. Highlevel battles roiled Deng Xiaoping’s reign, too. The urbane Zhao Ziyang, ousted as Communist Party chief for encouraging pro-democracy protesters in Tiananmen Square in 1989, spent the rest of his days under virtual house arrest in Beijing. Eventually, Deng hit on an alternative to winner-take-all contests: collective leadership, along with term limits. The party got a new lease on life. Deng’s signal innovation allowed China to focus its energies on getting rich. By abandoning the first part of Deng’s formula, and calling into question the second, Xi Jinping has pitched Chinese elite politics into a potentially precarious unknown. For the first time in several decades, the succession question is up in the air; the justconcluded 19th Party Congress failed to appoint a next-in-line to Mr. Xi. Will he stay on as leaderfor-life? Nobody can say, although now that his “thought” is embedded in the party charter alongside Mao’s he is politically untouchable. On this fragile basis, Mr. ANDY WONG/ASSOCIATED PRESS CHINA’S WORLD By Andrew Browne Pedestrians walked by a poster of President Xi Jinping on a street in Beijing last week, during the Communist Party congress. Xi proposes to build China into a modern socialist country by 2035 and a superpower on a par with the U.S. by midcentury, the centenary of the People’s Republic. O ne-man rule has been a recipe for instability since Stalin’s day. Yet in a measure of the selfdoubt that grips Western democracies today, a congress most notable for wrenching the country backward has been interpreted in some corners as a triumphal coming-of-age for the party, even a warning of the West’s impending eclipse. “China is marching toward its perception of its global destiny,” writes Kevin Rudd, the former Australian prime minister. “It has a strategy. The West has none.” China’s confidence has been building in tandem with deepening political dis- array in the U.S. and Europe. Some China watchers speculate that Mr. Xi may feel a successor at his shoulder will slow him in a historic opportunity to return China to its central place in the world. Of course, he can anoint one at One-man rule has been a recipe for instability since Stalin’s day. any time; the Politburo is packed with his supporters. So far, Mr. Xi hasn’t trumpeted this retro-Maoist political setup as something for others to follow. In his speech to the congress, though, he did suggest that developing countries would be wise to adopt China’s eco- nomic model. Its accomplishments are impressive. Yet the true test is to come. Apart from a handful of oil-rich emirates, not a single country has broken out of the so-called middleincome trap and achieved rich-nation status without adopting some form of political pluralism. South Korea and Taiwan are two examples of economies that took off at a similar trajectory to China’s under strongman rule, but made the final ascent to prosperity as democracies. Mr. Xi’s big bet is that he can personally lead the breakthrough without strong institutions, checks and balances and, crucially, without orderly and predictable arrangements to hand over power. Perhaps Mr. Xi is setting store in technology to supplant collective wisdom at the top. China is investing mas- sively in artificial intelligence and quantum computing. T his could be one way its new Mao hopes to overcome what he calls his country’s principal “contradiction”: After years of breakneck growth, the desire for a better life collides with the realities of wide income gaps, an inadequate social safety net and environmental ruin. Mr. Xi has neither Deng’s revolutionary credentials nor Mao’s charisma. He is powerful but not yet loved. Meanwhile, the burden of delivering national rejuvenation now rests upon Mr. Xi’s shoulders. That reality threatens to make his rule a brittle one. And Deng would be dismayed: Whether Mr. Xi hands over the reins or dies in office, like Mao, the prospect of a chaotic battle for supreme leadership looms again. This will shatter a window. This will shatter every preconceived notion about brick the world has ever had. NewBrick delivers the classic beauty of traditional clay brick, with enormous advantages in weight, ease of use, environmental impact, system cost, and energy efﬁciency. To learn more about why NewBrick is the choice of forward-thinking architects, builders, contractors, developers, and homeowners, visit newbrick.com or call 1-833-NEWBRIK. China’s Economy Appears To Slow Chinese economic activity showed evidence of softness in October, cooling from a more than five-year high reported ahead of the Communist Party congress. The official manufacturing purchasing managers index, a gauge of China’s factory activity, fell to 51.6 in October from 52.4 in September, data showed Tuesday. The reading was below the median forecast of 51.8 by economists polled by The Wall Street Journal. Tuesday’s data, an early peek at the economy’s performance in October, came as interest rates in the bond market rose across the board this week, adding pressure on companies already struggling to service their debt. Chinese stocks remained lower after a significant decline Monday, with shares hit by liquidity concerns. Following Tuesday’s data, China’s bond market saw a rebound in prices, which move inversely to yields, reflecting the market’s expectations that softer economic growth could lead to an easing in monetary policy. Ahead of the party congress concluded last week, economic activity had risen, boosted by external demand and stimulus measures. Higher commodity prices also supported business sentiment; in October, that optimism faded somewhat. Officials attributed the slowdown to the Golden Week holiday, which disrupted production and curbed orders, but economists say rising borrowing costs and waning effects of government support for economic growth may have started to weigh on businesses. “September’s spike was a real surprise and [October’s] pullback seems to be more like a normal reading,” said Tommy Xie, an economist at OCBC. —Liyan Qi For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com TECHNOLOGY: GOOGLE’S WAYMO EDGES NEARER TO DRIVERLESS MINIVANS B4 BUSINESS & FINANCE © 2017 Dow Jones & Company. All Rights Reserved. S&P 2575.26 À 0.09% S&P FIN g 0.28% S&P IT À 0.39% Wednesday, November 1, 2017 | B1 THE WALL STREET JOURNAL. * * * ** DJ TRANS g 0.45% WSJ $ IDX À 0.10% LIBOR 3M 1.381 NIKKEI (Midday) 22324.64 À 1.42% Twitter, Facebook, Google officials pressed on accounts linked to Russia BY BYRON TAU AND DEEPA SEETHARAMAN WASHINGTON—Senators pressed representatives from three technology giants to explain why they didn’t recognize Russia-linked accounts earlier, as the officials struck a contrite tone about the role their services played in stoking political tensions during the 2016 campaign Facebook Inc., Alphabet Inc.’s Google and Twitter Inc. were summoned in front of a subcommittee of the Senate Judiciary Committee on Tuesday, where officials told members of Congress that they were actively developing better policies for how to curb foreign activity on their platforms and ensure that foreign governments, terrorists and criminals aren’t able to abuse social media for nefarious purposes. The officials also faced questions about voter-suppression efforts and whether Silicon Valley can or should police speech. The tech companies emphasized that only a fraction of the total political content that appeared on their platforms had any links to foreign governments, particularly Russia, which the U.S. intelligence community determined in January ran a campaign of hacking and disinformation aimed at influencing the 2016 presidential election. They promised to take more responsibility for policing political CHIP SOMODEVILLA/GETTY IMAGES Tech Giants Under Fire in Senate Colin Stretch says Facebook missed signals on the Russian ads. content on their platforms in the future. But the tech giants also disclosed that millions of users saw either paid or free election-related content during and after last year’s election across the platforms. Members of Congress peppered tech executives, especially Facebook General Counsel Colin Stretch, with questions about their policies toward hate speech and terrorism, ad- targeting capabilities and how they manage their role in political discourse in the U.S. as well as in developing countries like Myanmar. In his written remarks, Mr. Stretch of Facebook described the Russian-created posts and ads as “deeply disturbing— seemingly intended to amplify societal divisions and pit groups of people against each other.” Several senators appeared irked by the amount of time it took tech companies to detect and disclose the extent of the Russian activity on their platforms. Sen. Patrick Leahy (D., Vt.) noted that there remained many pages on Facebook that appeared similar to those created by the Internet Research Agency, a pro-Kremlin group that bought ads on Facebook during a two-year period that Please see SENATE page B4 Dow Surpasses S&P, Nasdaq As Tesla cranks up production of the Model 3 sedan, it faces mounting signs of labor unrest. Its Fremont, Calif., plant in early 2015. Under Pressure Tesla shares are doing well despite mounting losses and pressure to meet production goals. Share price $400 Quarterly proﬁt/loss Number of vehicles delivered* 100 thousand $50 million 0 350 80 –50 –100 300 60 –150 250 40 –200 –250 200 20 –300 150 2016 –350 ’17 estimates† 0 2014 *Includes the Model S, Model X and Model 3 †Consensus estimates ’15 ’16 ’17 Sources: S&P Capital IQ (proﬁt/loss); FactSet (shares; deliveries) 2016 ’17 ’18 THE WALL STREET JOURNAL. Tesla Hits Labor Discord on Model 3 BY TIM HIGGINS In early 2016, a crisis unfolded at Tesla Inc.’s electriccar factory. The company’s new Model X sport-utility vehicles were stacking up in the repair yard with misaligned parts. Tesla took the unusual step of placing more than a dozen INSIDE workers at the end of the assembly line to whack doors and side panels into shape with rubber hammers, according to people familiar with the matter. The company suffered months of delays as it learned to build the Model X, leading to long hours and injuries as factory workers rushed to meet lofty goals, say people familiar with the effort. Chief Executive Elon Musk has said Tesla fixed the quality and design problems and improved safety at the Fremont, Calif., factory. But as Tesla cranks up production on the Model 3 sedan, it is having to wrestle with mounting signs of labor unrest that could disturb the Silicon Valley company’s effort to build its first electric car for the masses. Several workers say the quality and design issues stemming from the Model X assembly have left them tired and worried about strenuous workPlease see TESLA page B2 Samsung Reworks Its Top Echelon BY EUN-YOUNG JEONG AND TIMOTHY W. MARTIN SEOUL—Samsung Electronics Co. shook up its senior ranks in a move that replaces all of its co-chief executives and strips its board chairman of any executive role for the first time, as the technology giant looks to address concerns about a leadership vacuum. On the same day that it delivered another quarter of record profit, the South Korean company on Tuesday appointed new heads of its three main business lines: mobile, electronics components and consumer electronics. The new co-CEO appointees are Kim Ki-nam, 59 years old, for components, Kim Hyunsuk, 56, for consumer electronics, and Koh Dong-jin, 56, for the mobile division. Samsung is facing a leadership crisis with its elderly chairman incapacitated, his son and de facto company leader Lee Jae-yong in prison and the conglomerate’s onetime powerful strategy group disbanded. Mr. Lee was convicted in August for bribing South Korea’s former president. He has appealed the decision and is undergoing a trial in a higher court. Samsung, the world’s largest maker of smartphones, memory chips and televisions, also said it plans to separate the roles of board chairman and CEO. Both roles were previously held by co-CEO Kwon Oh-hyun, whose surprise resignation in October triggered Tuesday’s shuffle. The board chairmanship will be assumed in March by Lee Sang-hoon, who is stepping down as chief financial officer, the company said Tuesday. Mr. Kwon, in announcing his departure last month, called for a fresh start for the company, saying Samsung is “hard-pressed to find new growth areas right now.” The new division heads are leaders “well suited to accelerate the pace of innovation and address the demands of the connected world,” Mr. Kwon said Tuesday, adding that they had “proven track records.” Skeptics argued that while the executive shuffle reinforces the company’s strengths, it appeared to fall short of addressing Mr. Kwon’s call to seek new growth opportunities. Like their predecessors, Messrs. Kim, Kim and Koh have spent more than two dePlease see LEADERS page B2 Heard on the Street: Samsung needs to push revamp........ B17 iPhone X’s FaceID Looks Hard to Fool BY JOANNA STERN TARIFFS FOR SOLAR PANELS ON HORIZON TRADE, B3 CHINA’S MOVES RIPPLE ACROSS THE GLOBE PROPERTY REPORT, B8 I have very few complaints about the iPhone X’s facial-scanning technology—other than it failed to alert me to the piece of lettuce I had stuck in my teeth for nearly half a day. It recognizes me in the dark, and also when I put on my sunglasses and take off my makeup. Although it does struggle to recognize me with my Groucho mustache and eyebrows on. (It’s a joke, Apple!) As you’ve likely heard, Apple’s new iPhone X no longer has a home button with a TouchID fingerprint sensor. Instead now there’s FaceID, a complex system of cameras and sensors that turns your face into the password. It’s the biggest difference between the much-hyped iPhone X and the many forgettable iPhones of the past DREW EVANS/THE WALL STREET JOURNAL The Dow Jones Industrial Average raced past its peers in October, as a pickup in economic growth around the world boosted shares of bluechip companies that sell everything from bulldozers to airplanes. The Dow industrials rose 4.3% in October, while the S&P 500 gained 2.2% and the Nasdaq Composite added 3.6%. The Dow outperformed the S&P 500 by the largest margin in any month since November 2008. The reason for the divergence, analysts and investors say, is that the 121-year-old Dow industrials are packed with large multinational companies reaping benefits as the world’s major economies grow in sync for the first time in a decade. The economic upswing, combined with a weaker U.S. dollar and rebounding commodities prices, have helped Dow components post quarterly profits that have so far outshone results in the broader S&P 500 index of large U.S. companies. As of Tuesday’s close, with more than two-thirds of the Dow industrials’ components having reported results for the latest quarter, the index was on track to post earnings growth of 6.3% from the yearearlier period, according to FactSet, which combines actual earnings with analysts’ estimates for those yet to report. The S&P 500’s expected earnings-growth rate is 4.7%, according to FactSet. If the Dow holds its lead, it would mark the third straight quarter that it reported higher earnings growth than the S&P 500. “With the upturn in the global economy, the upturn in growth—that’s all been helping fuel a stealth rally in industrials that people may not have appreciated,” said Matt Watson, portfolio manager at James Investment Research, which has $6 billion in assets under management. Because the Dow industrials are price-weighted and count just 30 components— compared with the S&P 500, which has 500 companies that are weighted by market capitalization—individual stocks can exert outsize influence on the Dow industrials’ overall performance. For instance, Boeing Co., which is the priciest stock in the bluechip index at $258 a share, accounts for most of the index’s gain this year. The S&P 500 is dominated by tech companies such as Apple, which has a market value of more than $800 billion. Indeed, this year’s stockmarket gains have been broad. A streak of strong earnings reports from technology compaPlease see DOW page B16 DAVID BUTOW/CORBIS/GETTY IMAGES BY AKANE OTANI See more at WSJMarkets.com Joanna Stern tried to trick the iPhone X’s facial-recognition system with a silicone mask of herself. few years. That’s why I decided to spend my first 24 hours with the X testing only the new facial-recognition features. Apple gave most reviewers the devices only on Monday. A full review of the phone, with extensive battery and camera testing, is coming soon. You’d be surprised how many faces you can stick in front of a phone in a day. I devised a series of tests to gauge the everyday—and not so everyday—uses of the biometric identity technology. Spoiler: Beware of adorable 8-year-old identical triplets. Everyday Usage I’ve quickly gotten used to unlocking with a glance. First, you register your face in the FaceID interface by doing two sets of awkward head rolls. That information is stored in a secure location on the phone itself. It is never sent to Apple’s servers. Once FaceID is set up, all you have to do is look down at your phone to unlock it. You know it’s unlocked when Please see STERN page B4 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B2 | Wednesday, November 1, 2017 THE WALL STREET JOURNAL. * *** INDEX TO BUSINESSES BUSINESS & FINANCE These indexes cite notable references to most parent companies and businesspeople in today’s edition. Articles on regional page inserts aren’t cited in these indexes. F Q Facebook.........B1,B4,B16 Franklin Resources ... B15 Qualcomm.................B16 G Greenland Holdings....B8 I Intel...........................B16 InterPark ..................... B8 B J BlackRock..................B15 Blackstone Group ....... B8 Blue Apron Holdings ...................................B17 Boeing....................B1,B3 BP................................B6 Burberry Group...........B3 J.C. Penney ................. A2 C Lannett........................B3 LG Electronics.............A1 Logicor.........................B8 Carlyle Group............B15 Caterpillar ................. B16 Chevron ....................... B6 Citadel.........................A3 CMA-CGM....................B2 CME Group..................A1 Cosco Shipping Holdings .....................................B2 CVS Health..........B6,B17 D Dalian Wanda Group ............................. B8,B10 Dandong Port Group.B15 Dean Witter................A8 Discover ...................... A8 Principal Financial Group .....................................B8 Prodigy........................A8 K Kellogg.................B6,B16 Kilroy Realty...............B8 Kmart..........................A1 L M Macerich......................B8 Mastercard................B15 MediaTek...................B16 Mediterranean Shipping .....................................B2 MGA Entertainment...A1 Microsoft...................B16 Mondelez International ...................................B16 Mylan...........................B3 R RealReal....................B17 Rockwell Automation ............................. B3,B16 Ryanair Holdings ........ B6 S Samsung Electronics ........................A1,B1,B17 Sanofi........................B17 Sears Holdings ........... A1 SL Green Realty..........B8 SolarWorld Americas . B3 Sony.............................B6 Space Exploration Technologies...........B17 St. Modwen Properties ...................................B10 Suniva..........................B3 T Tesla............................B1 Teva Pharmaceutical .. B3 3M ............................. B16 TPG RE Finance Trust B8 Twitter ........................ B1 U Uber Technologies .... B17 Under Armour......B6,B16 Urbplan......................B15 N V Nike......................B6,B16 E P Voyager Therapeutics ...................................B17 Emcure Pharmaceuticals .....................................B3 Emerson Electric.B3,B16 Endo International......B3 Palantir Technologies ...................................B17 Pfizer...........................B6 PGC Capital.................B8 Waymo........................B4 Whirlpool .................... A1 WPP.............................B6 W INDEX TO PEOPLE A Athey, James............B16 B Bailey, Christopher.....B3 Bergman, David..........B6 Bertelsen, Chris........B16 Bertolini, Mark T........B6 Brzezniak, Kacper.....B17 H Heymann, Nicholas.....B3 Hopper, Abigail Ross..B3 Plank, Kevin................B6 Powell, Jerome.........B16 Pruess, Ben.................B6 J R Jae-yong, Lee..............B1 Rayner, Paul..............B17 Read, Ian.....................B6 Ritter, Jay.................B17 K Campion, Andrew ..... B16 Coppens, Tim..............B6 Coppola, Art................B8 Kim Hyun-suk.............B1 Kim, Ki-nam................B1 Koh, Dong-jin..............B1 Kontopoulos, Yianos.B17 Krafcik, John...............B4 Kwon, Oh-hyun...........B1 D L Dankert, Chris.............B3 Dawson, Jan................B4 Dziczek, Kristin...........B2 LeBas, Guy................B16 Lee, Sang-hoon....B1,B17 C F Farr, David...................B3 Fulks, Kip .................... B6 M-P Continued from the prior page cades at Samsung, gradually rising through the ranks in the business areas that they will be leading. “It’s hard to see how Samsung will identify new growth areas with these appointments,” said Park Ju-gun, head of CEO Score, a Seoul-based corporate research firm. He added, however, that Samsung may have sought to reassure shareholders given the leadership vacuum at the very top. “Maintaining the status quo may be the way to go at times of risk,” Mr. Park said. Samsung shares rose following the announcement of TESLA Continued from the prior page ing conditions re-emerging as the company falls behind in meeting Mr. Musk’s ambitious goal of producing 5,000 cars a week by year’s end. Tesla made just 260 Model 3 cars during the third quarter, missing its projection of more than 1,500. The factory’s body shop wasn’t ready at the start of production in July and workers were hand-making portions of the car as recently as September, The Wall Street Journal reported. Mr. Musk, who acknowledged Tesla has entered “production hell,” will likely speak about Model 3 production Wednesday when the company reports quarterly results. In a statement, Tesla reiterated that the Model 3 is easier and safer to build than the Model X. “The challenge is fine-tuning the bring-up of certain automated production processes. However, this will ultimately result in higher volumes and even safer production for our employees.” The production ramp-up has stirred the United Automobile Workers union, which since last fall has rented an office about a mile from Tesla’s factory and has spent thousands of dollars to put organizers in a local hotel, according to union records and a person familiar with the matter. The UAW also hired a public-relations firm that specializes in politics and joined in U Umpleby, Jim............B16 Moret, Blake...............B3 Murphy, Alan .............. B2 Musk, Elon...........B1,B17 LEADERS S Skorney, Brian .......... B17 Skou, Soren.................B2 Stretch, Colin..............B1 W Wainwright, Julie.....B17 Watson, Matt.............B1 Wilhelm, Harald..........B3 Y Youngkin, Glenn........B15 the executive shuffle and the company’s quarterly results, closing up 1.9% on Tuesday at a record. Samsung’s decision to make Lee Sang-hoon chairman of the board will strengthen decision making, Mr. Park said. He also noted that the board would take on some of the functions previously performed by the Samsung conglomerate’s control tower, which he said should improve transparency since any board decisions would have to be publicized. The conglomerate’s Future Strategy Group was criticized for its opacity and lack of accountability to shareholders. Samsung dismantled it this year amid an outcry over its involvement in a wide-ranging filing complaints against the company with the National Labor Relations Board, claiming Tesla harassed workers trying to unionize. An administrative judge expects to hear the complaint in November. Tesla has denied wrongdoing, saying the effort was motivated “only to generate headlines.” The union last Wednesday filed another complaint, saying Tesla fired some workers in October because they were union activists. Tesla said the workers were laid off because of performance. The labor discord raises questions whether the factory 260 Model 3 cars made in third quarter, short of projection of over 1,500 will struggle with the demands of a leader whose vision of Tesla is as much a software company as it is an auto maker, one that bucks tradition and draws its strength and creativity from Silicon Valley. Mr. Musk has proven doubters wrong by creating a coveted luxury brand with electric cars. But at $35,000, the Model 3 will test whether Tesla’s manufacturing prowess can produce vehicles at a projected rate of a half-million a year. “If there ever was an opening [for the union], this is it,” said Kristin Dziczek, a longtime labor analyst at the Cen- New Megaships Cloud Recovery BY COSTAS PARIS Container shipping is emerging from a painful sixyear slump, but a glut of tonnage that will hit the water over the next two years threatens to derail the nascent recovery. In recent months, Mediterranean Shipping Co. and CMA-CGM SA have each announced orders for 11 megavessels. Together, with existing plans by Asian giants such as Cosco Shipping Holdings Co. and Evergreen Line, the moves mean dozens of these vessels will be delivered by 2020. The ships—as tall as the Empire State Building if turned upright—can move 20,000 containers each and will sail between Asia and Europe, where operators often undercut each other, pushing rates below break-even levels. “The gap between supply and demand is closing, but there is still tonnage coming in, so the problem is not going away,” said Alan Murphy, chief executive of SeaIntel Maritime Analysis. Shipping analyst Alphaliner said shipping demand would have to grow by 8% annually for the overhang to be cleared next year. If growth is a more realistic 5%, overcapacity will extend into 2020—as long as there are no new orders on top of what is already on the books. Shipowners say rising demand will absorb the new capacity and those with the biggest and most efficient ships stand to benefit. The big players moved to renew their fleets on the back of low steel prices and cheap financing over the past four years. “We see solid global growth in the U.S., Europe and China, which is good news for shipping,” said Soren Skou, chief executive of A.P. MollerMaersk A/S, which operates Maersk Line, the world’s biggest shipping company. “We also see a turnaround in energy-dependent countries like Brazil and Russia, where CAREN FIROUZ/REUTERS ESL Investments........A8 Evergreen Line............B2 Exxon Mobil................B6 A Cosco ship being loaded at a port in Pakistan. The operator is getting 17 new vessels next year. ers have minimal impact on freight pricing. The shipping ranks have thinned after a downturn in global trade led to price wars among carriers on major trade lanes and an unprecedented consolidation in which the top 20 container lines narrowed to 11. The remaining players have formed three global alliances that have allowed them to cut billions in annual costs by coordinating cargo and sailing larger vessels. Drewry Shipping Consultants Ltd. estimates that container lines are set to report a combined $6 billion in operating profit this year. The world’s top 20 operators incurred roughly $5 billion in losses last year. More than 60 megaships are on order, with Cosco, the world’s fourth-biggest player, getting 17 next year and Evergreen 11 by 2019. MSC and CMA CGM, the second- and third-biggest operators, will get their deliveries starting in the second half of 2019. Cosco said this week it will raise $1.9 billion through a private placement to finance the new ships. Rates have come up strongly since the depths of the crisis in the first quarter of 2016 when they hovered at around $300 per box in the benchmark Asia-Europe loop, compared with $783 now. However, after a strong start this year, rates in the third week of October were down sharply across the board, according to Freightos, an online freight marketplace. Asia-Europe rates fell 16% year-to-year, trans-Pacific rates were down 29% and Asia to the U.S. East Coast declined 29%. Ship owners say anything below $1,400 on the Asia-Europe route is unsustainable in the long term. —Paul Page contributed to this article. ing its dominance in memorychip technology. He was also at one time CEO of displaymaking affiliate Samsung Display Co. Kim Hyun-suk, who will oversee televisions and home appliances as head of consumer electronics, joined Samsung in 1992 and built his career in the company’s visualdisplay business. Mr. Koh, mobile’s new chief executive, was already one of the company’s highest-profile figures as the presenter of Samsung’s flagship smartphones at splashy events. He was also the one to bow in public apology during last year’s recall of fire-prone Galaxy Note 7 smartphones. Despite Tuesday’s shake-up, Samsung’s unique system of three co-CEOs remained intact. The system, introduced in 2013, was created in part to assure competitors—who in some cases source key components from Samsung—that each unit was independent from the other. The personnel announcements came hours after Samsung delivered a record quarterly profit for the second time this year amid strong demand for its electronics components. The Suwon, South Korea-based company said third-quarter net profit rose to 11.19 trillion South Korean won ($9.95 billion) from 4.54 trillion won a year earlier. Revenue climbed 30% to 62.05 trillion won. Falling Freight Cost Ship glut hits freight rates despite rising demand. Asia-U.S. West Coast 2015 Asia-U.S. East Coast 2016 Source: Braemar ACM Shipbroking economies are no longer contracting.” Recovery expectations are also reflected in strong volume growth at major ports across the globe. Chinese ports handled an average 10% more cargo in the three months to September and West Coast gateway Long Beach, Calif., handled a record 2.1 million containers over the same period, up 16% year-to-year. Maersk’s Mr. Skou expects capacity growth to be more disciplined over the next decade, with only about six global operators controlling the market while smaller play- Lee Jae-yong’s imprisonment left a void at the top of Samsung. political scandal that took down South Korea’s former president. Kim Ki-nam, the new com- ponents chief responsible for Samsung’s most lucrative business, is credited within the company with strengthen- ter for Automotive Research in Ann Arbor, Mich. Signs of trouble for the Model X began in 2015 when, just weeks ahead of production, Tesla changed the SUV’s signature feature: rear passenger doors that opened upward using a hydraulic system. Tesla said the supplier had difficulty building the complicated door, so it switched to a more traditional engineering solution. Adding to the complications, in early 2016 Tesla managers realized the vehicles’ frames were flexing too much during the build process, throwing the parts out of alignment, according to people who worked on the Model X. With quarterly production targets looming, Tesla managers required longer hours and weekend work. One hourly worker recalled working 13 straight days. “They went by with carts and dollies full of Red Bull and threw them out to everybody,” he said. “It felt like we literally lived there.” Unlike traditional unionized factories that schedule overtime in advance, Tesla’s workweek could change with little notice, workers said. Several of them said they feared losing their jobs if they didn’t work the overtime. To address workers’ concerns, Tesla said it added a third shift in the fourth quarter of last year, reducing overtime by more than 60%. Workers, meanwhile, said they noticed a change in irregular overtime this year after hourly worker Jose Moran wrote an open letter in Febru- ary to Mr. Musk laying out complaints as part of a union organizing effort. Mr. Moran complained of unsafe working conditions and said the company was forcing overtime, claims Tesla says aren’t correct. Tesla recorded 8.8 injuries per 100 workers in 2015, higher than the industry average of 6.7, according to an analysis by Worksafe using company data. Tesla’s injury rate last year was 8.1; an industrywide comparison isn’t yet available. In May, Tesla said the recordable incident rate dropped to 4.6 during the first quarter, ahead of Model 3 production. The company also said it employs an ergonomics team to address repetitive labor in the design of making the Model 3. People who worked on the Model X say injuries likely multiplied during the nine-month production ramp-up because Tesla’s design team didn’t factor in enough of the effects of repetitive labor. For example, Tesla designed middle-row seats to appear like they rested on a pedestal, requiring dozens of extra bolts. Those bolts kept stripping, so workers had to crawl into the vehicle to twist each one by hand, these people said. Tesla built a flawless version of the Model X in April of last year and celebrated the milestone at about 3 a.m., Mr. Musk said. He later acknowledged that Tesla went too far with the Model X. “We got overconfident and created something great that probably will never be made again and perhaps should not be,” he told shareholders in June. Asia-Europe 2017 THE WALL STREET JOURNAL. SEONGJOON CHO/BLOOMBERG NEWS A Adidas ......................... B6 Aetna............B6,B16,B17 Airbus..........................B3 Alphabet ................ B1,B4 Amazon.com........A8,B16 Anbang Insurance Group .....................................B8 Antarctica Capital.......B8 Anthem ....................... B6 A.P. Moller-Maersk.....B2 Apple...............B1,B4,B16 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 1, 2017 | B3 NY BUSINESS NEWS Equipment Maker Rejects New Offer From Emerson By Andrew Tangel, Dana Cimilluca and Bob Tita a deal that would combine two big U.S. makers of machines and software used in manufacturing. The latest half-cash, halfstock bid by Emerson, a St. Louis-based industrial conglomerate, came in early October and was valued at $215 a share, according to Rockwell. The Milwaukee-based maker of industrial equipment said it also rejected an Emerson bid in August valued at $200 a share. Rockwell Chief Executive Blake Moret said in a statement the company’s board and management are “confident in the company’s strategic direction and our ability to continue delivering superior levels of growth and value creation.” An Emerson spokesman confirmed the company’s attempt to acquire Rockwell but declined to comment further. Rockwell shares rose 7.4% to $200.82 on Tuesday. Emerson’s stock fell 4.3%. It wasn’t immediately clear what might be Emerson’s next step. Now that the bids have become public, Rockwell may feel shareholder pressure to engage in negotiations. Rockwell was skeptical of the large amount of Emerson’s stock, according to people familiar with the matter. It also has concerns about Emerson’s management and its record with mergers and acquisitions, the people said. One of the people described Rockwell’s view of Emerson’s bid as: “They need us. We really don’t really need them.” Emerson’s automation business is largely focused on chemicals, cement, oil and natural-gas installations and other materials produced in outdoor facilities. Its business portfolio also includes hardware such as industrial valves and kitchen garbage disposals. Rockwell has generally specialized in developing equipment and software used to make products such as cars, electronics and food. Rockwell has increasingly been focused on what it calls the “connected enterprise,” using software to link manufacturing to data across a company’s operations. NATI HARNIK/ASSOCIATED PRESS Rockwell Automation Inc. has rejected a takeover bid by Emerson Electric Co. worth roughly $27.5 billion, spurning The trade issue has divided the solar industry, with panel Installers saying tariffs would hurt U.S. consumers and blunt demand. Solar-Panel Tariffs Loom U.S. trade officials lay out measures against low-price imports decried by local makers BY ERIN AILWORTH Federal trade officials are recommending that the Trump administration impose an import tariff of up to 35% on solar panels to protect U.S. solar manufacturers from low-price imports that have undercut the companies’ ability to compete. Members of the U.S. International Trade Commission outlined their various recommendations Tuesday, which also included import quotas. They must now send them to the White House, which has until January to decide what, if any, actions to take. The recommendations after two embattled solar-panel makers, Suniva Inc. and SolarWorld Americas Inc., peti- Elusive Quarry Rockwell Automation’s shares are up on news of Emerson’s interest. Percentage change in share price since May 1, 2017 30% 25 20 Aug. 2: Rockwell receives $200 per share offer from Emerson. Oct. 10: Emerson increases offer to $215 per share. Oct. 31: Rockwell conﬁrms it rejected Emerson’s latest bid. Rockwell 15 10 Emerson 5 0 –5 J J A Source: FactSet S O THE WALL STREET JOURNAL. tioned the ITC for a tariff on imported solar cells, the component of a solar panel that converts sunlight to electricity and which both companies make. Suniva and SolarWorld had also sought either a floor price on solar modules or a quota on imported cells and modules in order to help domestic manufacturers compete against the imports, mostly coming from Asia. On Tuesday, a majority of the four trade commissioners recommended the president implement tariffs on imported solar panels and cells. But the size of the tariffs varied, and fell short of both the 25 cents a watt tariff that Suniva and SolarWorld had requested on cells and the 32 cents requested for panels. One commissioner recommended selling licenses for imports that would restrict the influx of solar products. Suniva said it is grateful the ITC sees the need for solartrade protections but thinks the commissioners’ recommendations “simply will not fix the problem the ITC itself has identified, and with it, we’ll see very shortly the extinction of what remains of this manufacturing sector, and the jobs of American workers.” SolarWorld said it believes the remedies the companies have proposed remain the best option for solar manufacturers. “We look forward to President Trump establishing remedies that will place this industry back on a path of robust growth,” the company said. The case has divided the solar industry. While some panel makers say they need protection, panel installers and others in the solar industry counter that a tariff would raise prices for consumers and hurt demand for solar arrays that were made more affordable by cheap imports. Both sides have claimed thousands of American jobs are on the line. Abigail Ross Hopper, chief executive of the Solar Energy Industries Association, a trade group that has opposed the petition, said she was heartened that the ITC recommendations fell short of what the companies had requested, but still sees them as being “intensely harmful” to the broader U.S. solar industry. “We remain committed to working with all parties to find a solution that supports domestic cell and panel manufacturing without cratering demand for American-produced solar energy,” she said. Suniva brought its petition under a rarely used provision of U.S. trade law—Section 201 of the U.S. Trade Act of 1974— that allows an industry to seek broad protection from a surge of imports if that surge has caused the industry serious injury. Mr. Trump campaigned on a promise to be more aggressive in using U.S. trade laws. —Jacob M. Schlesinger contributed to this article. States to Widen Generics Suit BY PETER LOFTUS Officials in multiple U.S. states are seeking to substantially expand a lawsuit accusing generic-drug companies of colluding to fix prices, including new allegations that highranking executives at two companies were directly involved. Attorneys general in 45 states plus the District of Columbia and Puerto Rico filed a motion in federal court in Philadelphia on Tuesday proposing to add several more generic-drug companies as defendants in the lawsuit and to expand the number of drugs at issue to 15 from two. The attorneys general, including Connecticut’s George Jepsen, originally filed a lawsuit in December against six companies, including Heritage Pharmaceuticals Inc. and units of Mylan NV and Teva Pharmaceutical Industries Ltd. The original lawsuit alleged that the companies conspired to manipulate prices for doxycycline hyclate, an antibiotic, and glyburide, used to treat diabetes. Mylan and Teva said they knew of no evidence of wrongdoing, and Heritage said it fired two executives last year after an internal investigation found serious misconduct related to the allegations. Now, the state attorneys general have asked a federal judge for permission to add 12 companies or corporate entities as defendants in the price-fixing allegations, including Novartis AG’s Sandoz unit, Endo International PLC’s Par Pharmaceuticals unit, Lannett Co., and Emcure Pharmaceuticals Ltd., the parent company of Heritage. An Endo spokeswoman said the company would defend itself against the states’ claims. A Novartis spokesman declined to immediately comment, and officials for the other companies couldn’t immediately be reached to comment. The attorneys general want to name as individual defendants Mylan President Rajiv Malik and Satish Mehta, chief executive and managing director of Emcure. Their request is subject to approval by the judge in the case. Mylan said in a news release it has been investigating the allegations and has “found no evidence of price fixing on the part of Mylan or its employees.” The company said it has “deep faith in the integrity” of Mr. Malik, “and stands behind him fully.” Mylan said the company and Mr. Malik intend to defend themselves vigorously. Neither Emcure nor Mr. Mehta could be reached to comment. BUSINESS WATCH BURBERRY GROUP Creative Director Leaves Luxury Brand Christopher Bailey helped make Burberry a top luxury brand. Our members charter to major destinations worldwide and enjoy never-before-seen low pricing, guaranteed availability, zero upfront commitment, and year-round service reliability. AIRBUS Jet Maker Alerts U.S. Of Reporting Failures NEIL HALL/REUTERS Burberry Group PLC is parting ways with Christopher Bailey, who over 16 years as creative chief, helped turn the company from a fusty trenchcoat maker to one of the world’s most-recognized luxury brands. Mr. Bailey struggled to right the ship after being elevated to the chief-executive position. He was replaced in that job two years ago, but remained president and creative director. On Tuesday, Burberry said he would resign his two posts and leave the board in March. A Burberry spokesman said the decision to leave was Mr. Bailey’s, and that Burberry had started its search for a creative head. —Saabira Chaudhuri THAN YOU EVER THOUGHT POSSIBLE Airbus SE has notified U.S. regulators about reporting failures in defense-related deals, widening the European plane maker’s global compliance woes. Airbus, which has struggled with regulatory issues, said it had reported itself to U.S. authorities about errors made on equipment exports. The transgression related to a failure to properly notify U.S. authorities about the use of outside sales agents, who help broker deals of defense equipment and services, Chief Financial Officer Harald Wilhelm said. Airbus didn’t divulge military secrets, he said. The disclosure comes as the plane maker—the world’s No. 2 by deliveries after Boeing Co.—said its adjusted earnings before interest and taxes fell to €697 million ($812 million) for the third quarter, from €729 million a year earlier. Sales rose 2% to €14.24 billion. Airbus said it would “slightly” miss its target of delivering 200 A320neo planes this year. —Robert Wall NEW YORK SOUTH FLORIDA FROM $1,990 NEW YORK CHICAGO FROM $3,980 NEW YORK LOS ANGELES FROM $7,950 AND MANY OTHER POPULAR ROUTES CALL OR EMAIL US TODAY +1 (866) 980-2758 INFO@JETSMARTER.COM USE PROMO CODE JS17 Purchase of membership is required. JetSmarter offers a number of programs including private charters, for which JetSmarter acts solely as your agent in arranging the ﬂight, and Public Charters, for which JetSmarter acts as principal in buying and reselling the air transportation. JetSmarter does not own or operate any aircraft. All ﬂights are performed by FAA-licensed and DOT-registered air carriers. Prices displayed above are for a select number of seats on a custom shared ﬂight. Additional restrictions may apply. B4 | Wednesday, November 1, 2017 THE WALL STREET JOURNAL. NY TECHNOLOGY WSJ.com/Tech Apple Cultivates iPhone X Reviews SENATE In departure from prior launches, early access is limited to small core testing group STERN Continued from page B1 you see the small padlock open on the lock screen. Swipe up and you’re in. It’s much faster than I anticipated, largely because you can begin to swipe while it reads your face. It clocks in at under a second in most instances. But there are some holdups: You must give your phone some attention with your eyes. It won’t recognize a profile view. A few other things I found during my testing: Photos and Masks I tried hard to get a photo to unlock the X. I taped a cutout photo of my The latest iPhone got less testing than most predecessors before reviews could be published. tech outlets that in past years received review models for a week of testing were given the iPhone X fewer than 24 hours before, resulting in crash reviews and first-impression takes from USA Today, the Washington Post, the Verge and others. In the U.S., BuzzFeed, TechCrunch and Mashable were given a week with the iPhone X, as were the Telegraph and the Independent in the U.K. The device also was given for a week to outlets in Japan, China, Australia and other countries. Steven Levy, among the handful of people to test the first-ever iPhone, spent a week with the iPhone X and posted his “first look” impressions on Backchannel, part of Wired Media Group, a day before most other publications. The change in strategy meant the iPhone X, which hits stores Friday, got less testing than most of its predecessors before reviews could be published. The handful of reviewers who received the device for a week largely praised its full-screen display, facial-recognition system and smaller physical size. Removing the physical home button meant people would have to adjust to how they operated the device, they said. Crash reviewers largely echoed those sentiments, adding the caveat that they could discover issues after they spend more time with the device. Most pledged full reviews for later in the week. The review strategy is “unusual,” said Jan Dawson, an analyst with Jackdaw Research. “It’s possible Apple wanted some reviews out early and those would be the more enthusiastic ones.” He said YouTube reviewers tend to be more positive when given early access to devices, and that most reviews aren’t face to my face, I pasted it on a big Popsicle stick, I even tried holding a photo on my iPhone 7 up to the new iPhone X. While the Galaxy Note 8 was fooled more than once with the paper cutout, none of this made the X flinch. If the X recognizes a face but it isn’t yours, the lock icon will jiggle. It makes sense that a photo didn’t work. Apple’s sophisticated system uses two cameras and projected infrared dots to measure the depth of your face. You know what has depth? A mask, a real theatrical mask. Yes, I made a silicone mask of my face. Well, I didn’t; it was created by Marc Fields at Compleat Sculptor, a New York business that helps artists learn to make prosthetics and masks. Last week, I went to his office and had a bunch of goop (technically, silicone molding compound and plaster) applied to my face to create a mold. On Monday, I returned with my colleague Denise and the iPhone X. We applied some makeup to my mask and Marc fit it to Denise’s face. While the mask lacked my smooth skin, eyes and other parts that make me look like a living human, the shape— down to the contours of my cheek and my nose—appeared to be a carbon copy. One thing I discovered during mask testing: Your eyes have to be open for FaceID to work. Thus, we cut creepy eyes out of the mold. My mission really was impossible: FaceID knew it was somebody’s face, but it wasn’t duped into thinking it was me. ADVERTISEMENT Career Opportunities To advertise: 800-366-3975 or WSJ.com/classiﬁeds CAREERS CAREERS ? # ( % (# > !"# % # $ # $ @ # @ ' # )* (#+ !' $ * $ 9 $ " $" ' $ "# ' # $ 9 $ " " $ @ #@ ' $'1 # ' A * ' # # @ ' 1 # '@ ' ' @ $ ' @ ' ' 1 @ $ '' &01 # '' ' 1 A@ (' ) $ ' '' 1 @ $' '' ' % # $'% $" ' ' ( ?@ 2# @ ' ? ?1 @ '@ ' >(, # @ ' % + $ % - $ " , %%%'. # $ % 5B)><) , ? , , ? 0 $ % ! / ? $ % ' @ $ % $ *' 'A " $ # @ $' '' " $' ' # E A @ # C0 ) @'' ! # # I," I22 @ #$ ' $@ '' K$ ' * )% # % $ $ % E A # < )* + L - $ " $% ' ? I) )$F -G4? M-7 B # ,@ :9 # % 4774B ( ' @ + & # ) , ?' ' $ $'% < , # '' & @ $' (#+ * !+ $ 9 " !" & '' ## $' & '' + !" @ $ ' !" %. , ' & $ ' & !" # & 3,.)!2 <. # ' # # " & # ? & " % %. @ ?' % @ # )!2$. % & ' # ?'@ % $ % & # & ' & $ *+ $ + !" % %. D4 ( & @'' $ ' & ' ?'@ % E0 $@ + & @ ' # & " % , ' # & 2 ? ?' !' % @ ' $ $+ " %.*+ 2 # /.. '#' & F 4G747GB78 !3! ,,!..?.> < # ' ' $ < # & 2# # # ( $ < # & H -776 < # & , # %%% '#' ' ' / 00 3 (" -M4B: , 8:4-M , / , <# $ F %/ 3 ! % ? '$ &. $ % $ !" / 0"1 % # 1 #% # 1 & # '' 2 )*+ Twins and Triplets According to Apple, the chances that a random person could look at your iPhone X and unlock it is one in a million, but the chances are a lot greater for identical twins or similar-looking siblings. So while your roommate can’t break in, it’s possible that your womb-mate can. I found that to be the case with the help of adorable 8year-old identical triplets. After Declan Lyons registered his face, his brothers Waymo Starts to Get ‘Close’ To Fully Driverless Minivans BY TIM HIGGINS > !" # $ % & ' # ( ) ' () # & )* (#+ + ( ( ,' ! + $ $ & - " $$ " , , )*+ - " %./ ) + & (%.0 ( # 1 ( # ' 1 $ & # ' % 1 & $ % $ # '' 1 ' ' $ $ $ # & 2 1 ' '" $ $% " & 1 & %. 3$$ ( ,+ & 2# % & )*+ 4 " %./ + ' ' & ' $ &0 & & $+ ' 5 ' $ " %.# &0 $ ' + + & !* ) 2 # /..%%%' '. . .## ' % & 678894: ;< '= & ;# = !3! ,@ ? % $ 2# $ ) 2) ' %## # '@ ' ' # & ## '' @ '# & '' ' $# %# + )*+ + + # $ $ & 6 " @ $$ 6 " ? C , )*+ " * $+ )*+ 6 " %./ # )1 '1 & )*+ - " %./ & # '# #' )*+ 4 " %./ 1 01 & + 5 ' $ " %.$% / $' $ 1 @ ' ' #. #' $'%1 & ' 2 # /..%%%' '. ..## ' % & 6788:97 ;< '= & ;# = !3! CAREERS Kormac and Kevin were able to unlock the phone. You don’t have to use FaceID; you can rely on a pass code, if you prefer. Important to note: Apple says children under 13 may also change the probability, mainly over time, as their facial features develop and change faster than an adult’s. Fraternal twins—or siblings who really look alike—might not fool FaceID. I had Pamela Weinsaft and her twin, Meryl Cooper, register their faces, and neither was able to unlock the other’s phone. Bottom line: FaceID is secure, fast, reliable and very easy to use. But even if it is Halloween, you’ll be headed for trouble if you go trying to clone yourself. Continued from page B1 included the U.S. election. Sen. Al Franken (D., Minn.) highlighted that those Russian-backed actors purchased Facebook ads in rubles. “How could you not connect those two dots?” he asked. Mr. Stretch responded: “It’s a signal we should have been alert to and in hindsight, one we missed.” On Tuesday, the companies promised that they understood their civic responsibilities to ensure that hateful, misleading, false or propagandistic content is better policed. Facebook has 10,000 people working on safety and security and plans to double that figure by the end of 2018, Mr. Stretch said. Twitter for the first time revealed the reach of Russianlinked content, acknowledging that there were about 288 million automated, election-related tweets from accounts tied to Russia between Sept. 1 and Nov. 15, 2016. Facebook in prepared testimony estimated that 126 million people on Facebook saw Russian-backed content from a single pro-Kremlin firm called the Internet Research Agency, The hearing featured some prominent examples of the Russian-created content, with Sen. Chris Coons (D., Del.) displaying two images of ads run by Facebook pages created by Internet Research Agency. One was an anti-Hillary Clinton ad from a page called “Heart of Texas,” which said she was “despised by the overwhelming majority of American veterans.” The second ad came from a page “Being Patriotic” for an Oct. 2, 2016, event called “Miners for Trump.” Sens. Dianne Feinstein of California and Amy Klobuchar of Minnesota asked about voter-suppression efforts, pointing to tweets that falsely claimed that people could “vote by text.” Twitter removed the tweets spreading “vote-by-text” misinformation because the company deemed it illegal voter suppression, Twitter’s acting general counsel, Sean Edgett, said. —Georgia Wells, Michelle Hackman and Douglas MacMillan contributed to this article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alif.—Waymo LLC, the driverless-car unit of Google parent Alphabet Inc., demonstrated Monday what traveling in its minivans might be like as a fully autonomous ride-hailing service. The experience begins in the back seat of the Chrysler Pacifica, where screens welcome customers aboard and instruct them to push a blue “start ride” button on the ceiling. The van otherwise seems like any other—except for its empty front seats. The demonstration, to a group of reporters at Waymo’s closely guarded test facility more than 100 miles east of San Francisco, suggests the Silicon Valley company is closer to deploying vehicles on public roadways without human safety drivers on board. “Our intention, make no mistake, is to go fully driverless and let the public access this technology on public roads,” said John Krafcik, TRUSTED NEWS AND INSIGHTS ON THE GO. WSJ APP FOR iOS. DOWNLOAD NOW ©2017 Dow Jones & Co., Inc. All rights reserved. 1DJ2461 WAYMO Apple Inc. departed from its traditional preview strategy for what it bills as its most important new iPhone in years, prioritizing early access to the iPhone X for YouTube personalities and celebrities over most technology columnists who traditionally review its new products. Apple provided the iPhone X to a small number of traditional testers for about a week, while limiting most others, The Wall Street Journal included, to a single day with the device before reviews could be published. About a half-dozen personalities on Alphabet Inc.’s YouTube video service were granted time with the device before its release. The company seeded the iPhone X to at least three influencers with different audiences: actor Mindy Kaling, who shared her thoughts with Glamour; 12-year-old developer Alex Knoll, who showed off the device on Ellen DeGeneres’s television show; and political journalist Mike Allen, who included insights from his tech-savvy nephew in Axios’s morning newsletter. Traditional publications and THOMAS PETER/REUTERS BY TRIPP MICKLE overly negative. “Unless Apple felt like there would be some bad elements in the reviews, why would you hold back?” Mr. Dawson asked. “Why would you be selective about who gets it first? The unusual approach comes in an iPhone release year marked by anomalies. For the first time, Apple released a trio of new handsets at its big fall launch event—the iPhone 8, 8 Plus and X. It also increased prices on its suite of new phones and staggered the launch, with the iPhone 8 hitting stores Sept. 22 and the iPhone X hitting stores six weeks later. The iPhone X arguably is the most important iPhone in a decade. Apple billed the device as the smartphone of the future, and investor anticipation of strong sales has helped send the company’s stock up more than 50% over the past year. Its success has taken on increasing importance amid lackluster sales for the iPhone 8 and 8 Plus. At $999, the iPhone X is the highest-priced major smartphone to date. It is expected to be in limited supply after production issues over the summer delayed manufacturing by at least a month. Advanced preorders began last week, and early demand quickly pushed shipment times for the device to five to six weeks from the day of an order—more than double the wait for last year’s iPhone 7. A rear screen shows an animated version of a demonstration drive. Waymo’s chief executive. “We’re getting to the point now where, I think it’s fair to say, we’re really close.” Waymo, seen as the leader in developing self-driving technology, is racing against other tech companies, auto makers and startups to bring to market an autonomous vehicle beyond the test versions running around Silicon Valley and early test cities. The vehicles on the road today are being tested with humans behind the wheel, ready to take control if needed. Waymo’s demonstration was one of the most complex yet by any of the competitors and illustrated the progress Waymo has made since 2015, when Google gathered the media to observe a small pod-car make a quick circle on a small test track. Earlier this year, Waymo expanded its testing to non-Alphabet employeesin the Phoenix area. The program aimed at understanding how the public might use the system as a day-to-day mode of transportation. Waymo is expanding its fleet of 100 Pacificas, modified with Waymo sensors and software, with a further 500 vans. During the demonstration, the vehicle slowly moved out of the parking lot after the start button was pushed. Passengers rode in the back seats, and the rear screens showed an animated version of the van navigating the track. The system is designed to give riders an understanding of the world as seen through the vehicle’s computer brain, which uses a collection of lasers, radar and cameras to see pedestrians and traffic. During the seven-minute ride, the van drove around a test track set up to mimic driving conditions, including a roundabout, construction-zone cones and merging traffic. A bicyclist passed by in the van’s blind spot and pedestrians popped up along the route, although neither scenario fazed the van. In addition to its button to start the vehicle, Waymo has others to call for help, pull the vehicle over and lock or unlock the doors. A push of the call button summoned a woman in a call center in Austin, Texas. Though the driver’s seat remained empty during the drive, the steering wheel turned on its own, a ghostly reminder of who was really in charge: the onboard computer. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 1, 2017 | B5 an open letter to ADP shareholders ADP has a long and proud history of putting the needs of our clients at the center of everything we do. For 68 years, our focus has been on reliability, breadth of solutions and quality of service as a leader and innovator in Human Capital Management (HCM). Our relentless focus on the needs of our clients has resulted in strong value creation for you, our shareholders, as well as for our other stakeholders. Every payday, we deliver on our commitment to our 700,000 clients around the globe, including more than 70% of the Fortune 500, and the 1 in 6 American workers and approximately 14 million international workers that we pay. We are a client-centric organization that is deeply involved with both technology and services. Over the past ﬁve years, we have taken decisive actions to position ADP for sustainable growth and success in the HCM industry by developing a complete suite of cloud-based solutions, investing to grow and scale our industry-leading Human Resource Business Process Outsourcing solutions, and leveraging our worldwide presence to provide truly global HCM solutions. We are the #1 provider of cloud-based HCM solutions with the #1 mobile HCM app, exceeding 12 million users, and we are #1 in ﬁnancial data services on the FORTUNE World’s Most Admired Companies® 2017 list. And our work doesn’t stop there. We continue to build on ADP’s strengths to anticipate and deliver on all of our clients’ HCM needs. We are investing more than $800 million annually in innovation, streamlining our operations, and attracting top technology talent to achieve our ambitious goals. We are motivated to do what we do best: create value for our clients, partners, shareholders and associates, and deliver returns in excess of both the market and our industry peers. We believe we are well positioned to continue our strong track of performance, sustainable value creation, and return of capital through dividends and share repurchases, building on 42 consecutive years of annual increases in the dividend. We are proud of our position as a global leader — and we are more conﬁdent than ever that the future is bright for ADP. At our Annual Meeting on November 7, ADP shareholders face an important decision that will directly impact the value of their investment and the future of ADP. Please vote to re-elect ADP’s 10 highly qualiﬁed directors on the WHITE proxy card to support ADP as we continue delivering on our commitments to our shareholders, clients, associates, partners, and the 40 million workers who depend on our services. Thank you. Your vote is important, no matter how many or how few shares you own. Vote today online, by phone or by mail by following the directions on the WHITE proxy card. For additional information on the 2017 Annual Meeting of Stockholders, visit VoteADP.com. If you have questions, or need assistance in voting your shares, please contact: Innisfree M&A Incorporated; call toll-free: (877) 750-0510 or call collect: (212) 750-5833. Carlos A. Rodriguez President and Chief Executive Ofﬁcer John P. Jones Chairman of the Board ADP, the ADP logo and ADP A more human resource are registered trademarks of ADP, LLC. All other marks are the property of their respective owners. Copyright © 2017 ADP, LLC. From FORTUNE Magazine, March 1, 2017 © 2017 Time Inc. FORTUNE and The World’s Most Admired Companies are registered trademarks of Time Inc. and are used under license. FORTUNE and Time Inc. are not afﬁliated with, and do not endorse products or services of, ADP, LLC. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B6 | Wednesday, November 1, 2017 THE WALL STREET JOURNAL. EARNINGS Slowing Down Under Armour’s sales and shares are in retreat. Sales, change from previous year 50% 3Q 2017 $1.41 billion ▼4.5% STEVE MARCUS/REUTERS 40 Under Armour lowered its full-year financial forecast. Its shares are down 57% this year. Share price $40 35 30 30 20 25 10 20 0 15 –10 10 2011 ’12 ’13 ’14 ’15 ’16 ’17 Sources: S&P Capital IQ (sales); FactSet (shares) Tuesday $12.52 ▼24% 2016 ’17 THE WALL STREET JOURNAL. Under Armour’s Sales Streak Ends BY SARA GERMANO Under Armour Inc. reported its first ever quarterly sales decline since going public in 2005 and cut its growth forecasts, sending shares tumbling on Tuesday as the results fueled fears the once-fast growing brand’s best years are behind it. Under Armour founder and Chief Executive Kevin Plank conceded the sportswear company had been “a bit braggish” about accomplishments in the past. He said its problems were a result of troubles in its home U.S. market as well as complications from fast growth in recent years. On a conference call, Mr. BP Signals Optimism With New Buybacks BY SARAH KENT LONDON—BP PLC on Tuesday said it would restart its share buyback program after posting healthy third-quarter earnings, the latest signal that the oil industry has found its footing amid a modest crudeprice recovery. The U.K. oil giant said its strengthened financial position allowed it to begin a share repurchase program in the final three months of 2017, though it didn’t put a value on future buybacks. With Brent crude, the international benchmark, trending over $60 a barrel for the first time since 2015, BP’s move ranks among the first actions showing big oil companies are healthy enough to sweeten the pot for investors who had soured on the sector. BP hasn’t had a share buyback program since oil prices crashed in 2014, falling from over $114 a barrel to less than $28 a barrel in early 2016. Other companies like Exxon Mobil Corp. and Chevron Corp. have also moved away from the practice while they grappled with the oil-price slump. BP said it could restart buybacks because it had driven its costs so low that it can generate enough cash to cover its spending commitments and dividend at $49 a barrel. Investors are increasingly looking at this break-even metric for signs big oil companies have succeeded in shifting their financial frameworks to operate profitably at lower oil prices. “We’re confident we can balance the books at $50 next year, and even manage as low as $45. That’s what gave us the confidence to raise the idea of buybacks with the board,” Chief Financial Officer Brian Gilvary said in an interview. Overall, BP’s replacement cost profit—a number similar to the net income that U.S. companies report—was $1.4 billion in the third quarter, down slightly from $1.7 billion in the same period a year earlier. But its underlying financials were strong, sending its intraday share price to highs not seen since three years ago, when oil prices were over $100 a barrel. BP shares closed up 1.7% Tuesday in London. wear brand. The Under Armour spokeswoman said that UAS would now be integrated across categories such as running, women’s and basketball, instead of as a stand-alone segment, and that creative director Tim Coppens will be launching a spring/summer 2018 line. Future editions of UAS, which now stands for Under Armour Sportstyle will be codesigned by celebrity collaborators, including the rapper A$AP Rocky. Mr. Pruess didn’t respond to a request to comment. Under Armour shares fell 24% Tuesday to $12.52, down 57% this year. Earlier this year, the company snapped its streak of 26 straight quarters of sales rising by 20% or more. Since its fourth quarter of 2016, revenue growth has sputtered. For the three months ended in September, Under Armour’s Plank said 2017 “is a reset for our business and our brand as we try to operate as a bigger company.” The company is implementing several changes, including stopping making wearable fitness trackers and instead focusing on improving software through its suite of apps. An Under Armour spokeswoman said the company would continue to sell its UA Health Band, UA Scale and UA Heart Rate devices through the remainder of the year. On Tuesday afternoon, the devices were on sale on Under Armour’s website for between 38% and 66% off. Meanwhile, Under Armour’s president of sport fashion, Ben Pruess, has left the company. Mr. Pruess co-led the design and launch of its high-end line, then known as Under Armour Sportswear, or UAS, in a bid to garner more fashion credibility for the traditional sports- profit fell 58% to $54.2 million as sales declined 4.5% to $1.41 billion from the year-earlier period. Analysts polled by FactSet had expected earnings of $84 million and revenue of $1.48 billion. Under Armour’s finance chief David Bergman said sales in the home market of North America would decline at a “high-single-digit” rate for 2017, underscoring the challenges in the sportswear market. Third-quarter North America sales fell 12%. The sportswear maker brought on a new president and chief operating officer in June, announced layoffs and restructuring in August. Kip Fulks, the company’s cofounder and widely seen as Mr. Plank’s top deputy, left on sabbatical last month. The Wall Street Journal reported that the company is considering exiting some categories, including tennis. Unlike rivals Nike Inc. and Adidas AG, the company does the vast majority of its sales in apparel, rather than footwear, and in North America versus globally, making it susceptible to increased competition in the U.S. Executives said that Under Armour would work internally to reorient its sales plan to be more direct-to-consumer, a move that follows similar efforts by rivals as the U.S. wholesale sportswear business has slowed. Some analysts took a grim view of the results, particularly the revenue decline. “It seems [Under Armour] is by definition not a growth company,” wrote Nomura Instinet analyst Simeon Siegel. Under Armour lowered its full-year financial forecast, expecting net revenue growth in the low single digits and operating income of between zero and $10 million. Pfizer Lifts Revenue, Halting Slide BY AUSTEN HUFFORD AND JONATHAN D. ROCKOFF billion in annual losses the company had been confronting in recent years. “You get this nice inflection where you have two major positive trends,” Chief Financial Officer Frank D’Amelio said in an interview. Pfizer, based in New York, had posted three consecutive quarters with revenue declines until the third quarter. The company said revenue rose 0.9% in the most recent quarter to $13.17 billion. Cancer-drug Ibrance and blood-thinner Eliquis notched among the quarter’s biggest sales gains, while Pfizer said it had begun to feel the impact from a coming exclusivity expiration for male-impotence pill Viagra. Sales of the drug Pfizer Inc. revenue rose in its latest quarter as the drugmaker says it has turned a corner and expects more product launches in the next several years combined with fewer drug-exclusivity losses. Chief Executive Ian Read said in an interview Tuesday that the company is developing 15 drugs that could be approved for sale by regulators by 2022, and each could have sales surpassing $1 billion. Meanwhile, Pfizer expects about $2 billion in sales losses because of patent expiries and generic competition during each of the next few years, compared with the roughly $5 fell 20% to $308 million as wholesalers began destocking the drug in advance of expected generic competition starting in December, the company said. For the third quarter, Pfizer reported net income of $2.84 billion, or 47 cents a share, compared with $1.36 billion, or 22 cents a share, a year earlier, though Pfizer said much of the favorable impact was because of one-time items such as the sale of an infusionpump business. On an adjusted basis, earnings were 67 cents a share, up from 61 cents. Shares in the company fell slightly. Pfizer cut its revenue outlook for the year but raised its profit guidance. It now expects full-year revenue between $52.4 billion and $53.1 billion, compared with $52 billion and $54 billion previously. It expects adjusted earnings per share between $2.58 and $2.62, up from an earlier forecast of $2.54 and $2.60. In February, the company completed the sale of its global infusion-therapy assets, known as Hospira Infusion Systems, for about $1 billion. Pfizer said in October that it was exploring a sale or spinoff of its consumer-health business, which makes Advil cough and cold medicines, Centrum vitamins and other over-the-counter products. The business had $829 million in third-quarter sales, up 4% from a year earlier. EARNINGS WATCH WPP Ad Giant Reduces Forecast Again WPP PLC cut its annual sales forecast for the third time this year, as the world’s largest advertising company struggles to boost revenue at a time when previously big-spending consumer-goods firms are ratcheting down marketing spend. The London-listed company on Tuesday said it now expects sales growth excluding currency swings and acquisitions to come in “broadly flat” for the year and also lowered its profit-margin guidance. WPP initially targeted 2% growth for 2017 before cutting its forecast to 0-1% two months ago in a move that sent shock waves through the marketing industry. Overall, comparable net sales fell 1.1% in the three months to Sept. 30, compared with a fall of 0.5% in the first half. The company reported a 1.1% rise in turnover for the period to £3.65 billion ($4.81 billion), as the Brexitweakened pound meant its earnings overseas were boosted when converted into sterling. WPP didn’t break out profit figures for its third quarter. —Nick Kostov RYANAIR HOLDINGS Carrier Sticks To Guidance Ryanair Holdings PLC sought to draw a line under weeks of flight cancellations and pilot strife, reporting a slight drop in net profit from costs linked to the disruption but sticking to full-year guidance. Ryanair in September and October canceled thousands of flights because of problems in scheduling HANNAH MCKAY/REUTERS Sportswear company reports quarterly decline for first time; CEO promises a ‘reset’ Irish carrier Ryanair said scheduling problems affecting thousands of flights hurt its quarterly profit. staff. More than 700,000 passengers were affected. The Irish carrier said net profit fell 1.8% to €895.4 million ($1.1 billion) in the busy JulySeptember season, dented by €25 million in compensation costs for passengers. Sales rose to €2.52 billion from €2.44 billion a year earlier. Despite the disruption’s costs, and a promise to pilots to boost pay, Ryanair held to its target full-year earnings target of €1.4 billion to €1.45 billion. —Robert Wall SONY Outlook for Year Aims for Milestone A key smartphone component and a niche mobile game are guiding Sony Corp. toward the highest fiscal-year profit in its 71-year history, a milestone reflecting a comeback. For the fiscal year ending in March, Sony now anticipates an operating profit of ¥630 billion ($5.56 billion) on ¥8.5 trillion in revenue, revising its previous forecast of ¥500 billion in profit on ¥8.3 trillion in revenue. The figure, if reached, would blow past the record set in fiscal 1997. The revision came as Sony delivered a better-than-expected second-quarter operating profit Tuesday of ¥204.2 billion that was boosted by image sensors used in smartphones and the mobile game “Fate/Grand Order.” Chief Executive Kazuo Hirai has made all of Sony’s electronics businesses profitable. Sony has shifted its focus on renewed growth, with Mr. Hirai emphasizing a recurring revenue model. —Takashi Mochizuki KELLOGG Growth Overseas Offsets Woes in U.S. Kellogg Co. reported a surprise improvement in sales as growth abroad offset continuing trouble in the U.S. for longstanding brands like Special K cereal. Kellogg’s overall sales rose about 0.6% in the third quarter, and comparable sales fell 0.8%, a narrower year-over-year decline than in the first two quarters of 2017. Profit rose 9.4% per share when adjusted for one-time events, topping analyst expectations. “Across the globe, I see more opportunities than I do challenges,” said Chief Executive Steven Cahillane, who joined the company about a month ago. —Annie Gasparro and Imani Moise Aetna’s Profit Rises;Firm StaysMum AboutCVS BY ANNA WILDE MATHEWS AND ALLISON PRANG Aetna Inc. posted increased profit but a decline in revenue for its latest quarter as the insurer highlighted moves to reposition its offerings and set itself up for long-term growth. During a call with analysts to discuss earnings, Aetna executives declined to address a report in The Wall Street Journal that CVS Health Corp. was in talks to purchase the company for over $66 billion. Chief Executive Mark T. Bertolini said the company won’t “comment on rumors or speculation.” He did, however, say that Aetna aims to announce its plans for its pharmacy-benefit contract with CVS by the middle of next year, and that CVS’s agreement to service the new pharmacy-benefit manager being launched by Anthem Inc. is “not a problem for us.” The existing Aetna contract with CVS goes through 2022, but Aetna has the ability to opt out at the start of 2020. Mr. Bertolini also said Aetna is poised to resume sales of short-term health insurance if the Trump administration removes a cap limiting such plans to three months’ duration, a move encouraged by a recent executive order. Mr. Bertolini also played up Aetna’s long-term growth trajectory as a stand-alone company, despite several moves that would be blows to its revenue in 2018. Aetna’s continued retreat from the Affordable Care Act exchanges, the sale of its life and disability business, and some pullbacks in Medicaid will affect revenue next year, the company said. Looking forward, Mr. Bertolini emphasized Aetna’s growth in Medicare, including its performance in the federal The insurer’s revenue dropped as fewer people were on the firm’s ACA plans. program’s quality rankings, and investments Aetna is making in data analytics. Aetna also said it is looking for growth in Medicaid over the long term. Aetna has said it is exiting the ACA exchanges next year, but Mr. Bertolini said that if the business “gets right and stable, we’ll look at reconsidering on how we get in.” Aetna on Tuesday again raised its profit forecast for 2017, predicting adjusted earnings per share of $9.75. The company previously estimated per share earnings between $9.45 and $9.55. Total adjusted revenue at Aetna declined 5% to $14.95 billion in the third quarter, as fewer people were on the company’s ACA plans and from the temporary suspension of the ACA health-insurance tax. Analysts were expecting revenue of $15.13 billion. Aetna posted net income of $838 million for the third quarter, a 39% increase from a year earlier. On an adjusted basis, net income rose 11% to $814 million. Adjusted earnings per share increased to $2.45, beating analysts’ estimates of $2.09 a share. In the prior-year quarter, the company earned $2.07 on an adjusted per share basis. Aetna Earnings Net income, quarterly $1.2 billion 0.8 0.4 0 –0.4 2015 2016 Source: S&P Capital IQ THE WALL STREET JOURNAL. 2017 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. NY Wednesday, November 1, 2017 | B7 From the world of mining to the world of the people. From the union of Votorantim Metais, the leading zinc mining company in Brazil, and Milpo, leader in Peru, Nexa has born: a global company made by people who think not only about the future of mining but also about the future of other people. For Nexa, as important as extracting from the ground the resources essential to technology, mobility, agriculture and infrastructure, among others, is leaving a legacy of pride, prosperity and development wherever it goes. Welcome, we are Nexa. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. B8 | Wednesday, November 1, 2017 INTERNATIONAL PROPERTY REPORT China Beijing’s Moves Ripple Across the Globe Capital controls grow tighter on investment in commercial sector; U.S. appears to slow PLOTS & PLOYS BLACKSTONE Assets Are Acquired From Principal Unit Blackstone Group LP purchased a 4 million-square-foot portfolio of warehouses, distribution centers and other industrial property in a $500 million deal that shows that the love affair between the private-equity giant and the hot logistics sector continues, people familiar with the matter said. Blackstone purchased the property in Southern California from Principal Real Estate Investors, the real-estate investment arm of Des Moines-based Principal Financial Group, people said. Blackstone has been a major player in the logistics center since the early years of the post-2008 recovery, amassing huge portfolios of property in Europe and the U.S. Values of distribution centers and warehouses have been rising steadily as the economy strengthened and demand has increased from e-commerce companies. —Peter Grant MACERICH Talks Held on Sale Of Los Angeles Mall Mall landlord Macerich Co. said it was talking to possible buyers of its Westside Pavilion, a 755,000-square-foot mall in west Los Angeles that had been suffering from weaker occupancy rates. The talks are with potential buyers that might have another use for the space. No deal is imminent, but Art Coppola, chief executive officer at Macerich, said during the third-quarter earnings call Tuesday that the company has received interest from a number of possible buyers. Mr. Coppola predicted Macerich will no longer own the asset within a year. —Esther Fung Construction in London, including the ‘Walkie Talkie’ building, which was bought this year by a Hong-Kong based company bucking a trend in overseas investments. Capital Constrained Chinese outbound capital into properties, development sites and portfolios $10 million or greater $40 billion 30 20 Global U.S. 10 0 2008 ’10 ’12 ’14 ’16 ’17* *Through 3Q Source: Real Capital Analytics THE WALL STREET JOURNAL. developer with projects in Los Angeles, New York and San Francisco, is considering selling part of its 42-acre waterfront development site in south San Francisco to Kilroy Realty Corp., according to people familiar with the matter. Greenland, alongside three other equity partners, purchased the project in August 2016. Greenland USA said its strategy has long included a willingness to work with local developers. “China’s capital controls will have a certain impact on immature companies, but it doesn’t mean it will restrict or affect the development path of companies that have international perspective and core competencies,” it said in a statement. Investors that follow strict mandates approved by the Chinese government, such as the sovereign-wealth fund Chinese Investment Corp., continue to be active in overseas real-estate markets. CIC bought a warehouse portfolio in Europe from Blackstone Group LP for €12.25 billion ($14 billion) in June. And property investments in line with Beijing’s foreign policy initiatives, such as the “One Belt One Road” program to revive the ancient Silk Road trading routes, have been given the green light. Real-estate companies based in Hong Kong also appear to be less affected. Companies based in Hong Kong this year bought two high-profile London buildings, nick- named the “Cheesegrater” and “Walkie Talkie.” But government policies have pushed some of the country’s most highflying conglomerates, like Dalian Wanda Group and Anbang Insurance Group, to throttle back. “One thing that’s concerned the regulators, these rich entrepreneurs were leveraged to the hilt, using investors’ money, using [People’s Republic of China] banks’ money, and leaving all the risk to the PRC investors and PRC banks,” said Howard Zhang, a Beijingbased partner at law firm Davis Polk & Wardwell LLP. “There’s a strong sentiment among the regulators, as well as among the general rank and file who resent how rich these people have become.” It now takes longer to get cross-border deals approved. Chinese government approval of such transactions usually takes at least three to six months but now may be delayed, Mr. Zhang said. Hotel investments also have dropped off. Chinese investors remain wary of drawing the kind of government scrutiny that befell Wu Xiaohui, chairman of Anbang, who made headlines after scooping up Manhattan’s Waldorf Astoria hotel in 2014 for $1.95 billion. Mr. Wu was detained in June by authorities who are investigating corruption. His whereabouts is unknown. To assuage concerns from foreign contractors and partners, some Chinese companies have made public statements about their offshore funds or their ability to raise money through U.S. dollar bond issuances. But increasingly, firms are toeing the party line. “Investors with capital already outside of China will continue to show strong interests allocating capital to U.S. real estate…though those in this category, even ostensively private companies, are progressively less free to ignore what goes on in China,” said Andrew Levy, senior counsel at law firm DLA Piper. Companies have taken notice of Beijing’s list of “encouraged” overseas investments, and in- vestments in logistics, senior care projects, health care and data centers have surged. PGC Capital, a Shanghaibased boutique investment bank, has invested around £500 million ($658 million) in U.K. property since 2015. The firm is redeveloping a former Birmingham car dealership into apartments. It is also eyeing a land purchase in Warsaw to potentially build a complex of 3,000 housing units and high-end hotels to develop a new town. Denise Li, founder and chief executive of PGC Capital, said that because the company’s planned projects include infrastructure construction, they support Beijing’s One Belt One Road program to build Chinese-backed ports, railways and pipelines in dozens of countries from Europe and Africa to China. PGC Capital also says it helps Chinese state-owned companies find overseas investments for the same purpose. “It very much follows the guiding opinions of the One Belt One Road initiative,” Ms. Li said. CIC Keeps Buying Overseas Despite Curbs BY PETER GRANT AND LINGLING WEI Late last year when the Chinese government enacted measures to curb outbound investment, the restricted list specifically included real estate. But you would never know it by looking at the foreign investments of China Investment Corp., the country’s sovereign-wealth fund. Officials at CIC, which has more than $200 billion of overseas assets, say the government’s tightened capital controls have had no impact on the fund’s ability to invest overseas—in property or any other investment—because that is the fund’s mandate. Indeed, CIC is the buyer in Europe’s biggest real-estate deal so far in 2017: the €12.25 billion ($14.3 billion) purchase of Logicor, one of the Continent’s largest logistics companies, from Blackstone Group LP. That deal is expected to close this year. CIC this year also joined a consortium led by TIAA Private Investments and Antarctica Capital to purchase InterPark, one of North America’s largest owners of parking facilities, used by more than 16 million cars annually. CIC also reported in a July regulatory filing that it has a 15.5% stake in real-estate finance firm TPG RE Finance Trust Inc., created by privateequity firm TPG. CIC’s continuing investments in real estate underscore the likelihood that Chinese investors will continue to play a major role in global real estate despite recent concerns raised by the government about outbound investment. Those concerns are causing a short-term reduction in Chinese deals and the departure from the stage by certain players that are getting extra scrutiny, such as Dalian Wanda Group and An- MICHAEL BUCHER/THE WALL STREET JOURNAL China’s controls on capital outflow are putting a chill on some global commercial realestate markets. Since late 2016, policy makers in Beijing have been tightening restrictions on overseas investments and scrutinizing some of the country’s most ambitious deal makers, voicing concerns that deals in certain sectors were disguises for capital flight into havens. In August, China’s powerful State Council announced that property investments abroad were “restricted,” along with deals in hotels, movie studios and sports teams. The directive called for a move away from “irrational” projects, widely seen by real-estate analysts and brokers as a criticism of the large foreign realestate investments made by Chinese firms in recent years. At the recent Communist Party congress, where President Xi Jinping solidified his control, officials reiterated concerns about systemic risks stemming from ill-considered purchases abroad. Outbound capital from China into foreign properties and development sites reached a record $36.8 billion in 2016, according to data firm Real Capital Analytics. Volume for the first three quarters of this year was $19.7 billion. In the U.S. real-estate market, capital from China slowed to $5.1 billion in the same nine-month period, down from a total of $14.8 billion in 2016, said Real Capital. These are deals that are $10 million and greater. The drop in foreign investments comes as commercial real-estate markets in the U.S. and Europe show signs of slowing growth and years of rising prices. Sales volume is down in most major cities. Real-estate executives and lawyers in the U.S. said there could be premature sales of Chinese-led American projects. Greenland Holdings Group, a China state-owned property TOLGA AKMEN/AFP/GETTY IMAGES BY DOMINIQUE FONG AND ESTHER FUNG CIC’s purchases, such as a stake in 1221 Sixth Ave. in New York, draw little public attention. bang Insurance Group Co. But approved players such as CIC are expected to remain active. “Ultimately China does encourage foreign investment, and it recognizes if Chinese companies are to participate in the global investment platform, they must invest overseas, whether it’s mergers and acquisitions or real estate,” said Susheela Rivers, head of the Asian real-estate practice for law firm DLA Piper, in an email. CIC’s deal activity also demonstrates the kind of realestate transactions that are looked on favorably by Chinese authorities. Unlike many of the flashy deals pursued by companies such as Anbang and Wanda, most of CIC’s deals have attracted little if any public attention. For example, CIC bought a 49% stake in a 50-story office building named One New York Plaza in New York’s financial district last year from Brookfield Property Partners LP, according to people familiar with the matter. Brookfield, which disclosed the deal but not the identity of the buyer, said the transaction valued the property at about $1.4 billion. Similarly, late last year the Canada Pension Plan Investment Board announced that it had sold a 45% stake in the office building at 1221 Sixth Ave. in New York to “a global institutional investor” for $1.03 billion. That investor was CIC, which was advised by Invesco Real Estate, which also co-invested a small amount of capital alongside CIC, according to a person familiar with the matter. CIC’s purchase of Logicor has been one of the fund’s most high-profile and highpriced deals. But the logistics company, which has a portfolio of 146.4 million square feet in 17 countries, is considered to be a mainstream real-estate asset that was fairly priced. Logistics is one of the hottest sectors in commercial property partly because of increasing demand from e-commerce companies. It is also a politically acceptable sector in China, since it supports Beijing’s “Belt and Road” program to build infrastructure across Eurasia and swaths of Africa. While the strong demand growth the European market has seen in recent years “is unsustainable,” recent demand levels are “likely to be maintained,” according to a recent report by Green Street Advisors. CIC also hasn’t chased deals the fund feels are overpriced. For example, this year CIC was among the bidders considering buying a 49% stake in the New York office building at 1515 Broadway being sold by SL Green Realty Corp., according to a person familiar with the matter. SL Green confirmed in October that it is in negotiations to sell a stake in the building but it didn’t identify the buyer. It isn’t CIC, according to a person familiar with the matter. CIC views property, among other long-term assets such as infrastructure, as an asset class that can generate steady cash flows for the fund amid a slowly rebounding global economy. Still, property remains a relatively minor asset class for the fund. CIC includes its property investments in a broad category that it calls “alternative assets.” That category represented 37.24% of CIC’s total overseas assets as of the end of last year. The real-estate section of the 2016 report said: “We invested in several high quality and resilient core assets in major real-estate markets in the world that could generate stable long term return.” The fund’s increased focus on foreign real estate also comes as CIC is ratcheting up its direct-investment efforts as opposed to relying on outside fund firms to manage its money. As it looks to beef up its real-estate investments overseas, the fund has had a particular focus on the U.S. In May, CIC opened a New York office, replacing what had been its only overseas representative office, in Toronto. But in recent months, Washington appears to be taking a tougher approach toward acquisitions of U.S. companies by Chinese firms. CIC officials have complained about what they say is an unfair review process by the Committee on Foreign Investment in the U.S. and called on U.S. authorities to improve the transparency of the process and avoid protectionism. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 1, 2017 | B9 STAND OUT TO THE UNKNOWN BUYER. 4,361 WEB PAGE VIEWS 113,726 SF 8 APPROVED BUYERS DOWNTOWN OFFICE 14 BIDS ACCEPTING OFFERS ACCEPTING OFFERS ACCEPTING OFFERS MARNELL CORPORATE CENTER 4 80 JOHN STREET THE VINEYARD SHOPPING CENTER Las Vegas, NV New York, NY Palm Springs, CA 93,650 Office SF 8,139 Retail SF 36,016 Retail SF View Details: View Details: View Details: 10x.com/marnell-wj 10x.com/johnst-wj 10x.com/vineyard-wj BID ONLINE NOV 6-8 BID ONLINE NOV 13-15 BID ONLINE NOV 13-15 DOUGLAS CORPORATE CTR I & II 3 BECKER FARM HOLIDAY INN Roseville, CA Roseland, NJ Evansville, IN 213,982 Office SF 115,422 Office SF 199 Hotel ROOMS View Details: View Details: View Details: 10x.com/douglas-wj 10x.com/beckerfarm-wj 10x.com/holidayinn-wj Ten-X Commercial is the CRE marketplace that goes beyond the usual suspects. It connects you with unknown buyers across the globe and offers a greater certainty to close. Sixty percent of our buyers come from out of state. 10x.com/wj | 888-770-7332 TenX RE, Inc./Ten-X, a Licensed Real Estate Broker. CA BRE 01994943. For all other state licensing details visit: https://www.ten-x.com/company/legal/licensing/ 1 Mauchly, Irvine, CA 92618 800-499-6199. B10 | Wednesday, November 1, 2017 THE WALL STREET JOURNAL. INTERNATIONAL PROPERTY REPORT | CHINA Wanda Feels the Squeeze Home Buyers Work Around Controls BY PETER GRANT AND WAYNE MA BY EMILY NONKO LUKE MACGREGOR/BLOOMBERG NEWS China’s Dalian Wanda Group made its latest splash in the London real-estate market this year by cutting a deal to buy its second site in a 57acre redevelopment project scheduled to open later this year. But it wasn’t to be. Wanda’s plans for the Nine Elms project near the new U.S. Embassy have become a victim of the Chinese government’s controls on money flowing out of the nation amid concern that a flight of capital could shake confidence in China’s economy and potentially weaken the yuan. Wanda did close on its deal to purchase a 10.2-acre site from St. Modwen Properties PLC for £470 million ($620.7 million). But just a few days later, Wanda was replaced in the driver’s seat by another Chinese group, including competing developers Guangzhou R&F Properties Co. and CC Land Holdings Ltd. Dalian Wanda’s exit from the deal is an example of the highflying real-estate and entertainment company’s global contraction. The company, controlled by Chinese billionaire Wang Jianlin, also was forced to sell other real-estate and entertainment assets valued at about $16 billion including debt as it came under scrutiny from regulators. Mr. Wang couldn’t be reached to comment. However, he recently praised Chinese President Xi Jinping’s opening speech at the Communist Party congress. The stumble of Dalian Wanda illustrates the vulnerability of real-estate companies that have strayed away from their original businesses and made big, flashy investments or paid what many perceived to be top dollar. Others, like Hong Kong-listed R&F Proper- Prepping for construction at London’s Nine Elms Square, in which Wanda has transferred ownership. ties and CC Land, haven’t made similar investments and, therefore, haven’t seen the same targets on their backs in the recent government crackdown on foreign investments. Other companies that have come under scrutiny include closely held HNA Group Co., which this year purchased a Park Avenue office tower in Manhattan for $2.21 billion. But HNA has been bedeviled by questions of who owns the company and how funds move within the group’s labyrinthine structure. In July, it unveiled a new ownership structure in an effort to answer those questions. Meanwhile, Anbang Insurance Group Co., which purchased the Waldorf Astoria hotel in New York in 2015 for $1.95 billion, also has slowed down due to government pressure. In the spring, it backed out of a plan to develop a $7.5 billion tower in Midtown Manhattan with the family of Jared Kushner, the son-inlaw of President Donald Trump who also is a White House senior adviser, according to people familiar with the matter. In 2016, Wanda paid $3.5 billion for Hollywood production company Legendary Entertainment. The company’s real-estate division has projects under way in major cities, including London, Chicago, Sydney and Los Angeles, according to its website. Chinese officials began imposing controls on what they called “irrational” overseas investments in late 2016. A few months later, Wanda’s efforts to purchase Dick Clark Productions, which produces the Golden Globes, was stymied by the company’s inability to move money out of China. Wanda made its first investment in the Nine Elms redevelopment project in the Wandsworth section of London in 2013, purchasing a site for a £700 million development with twin towers, including residential, office and retail space as well as a five-star Wanda hotel. Work on that site, named One Nine Elms, has begun. Wanda cut its deal to buy the second Nine Elms site in June. But in August the company said it had “transferred its ownership of the Nine Elms Square project to a third company.” China observers say they saw no sign from the Communist Party’s weeklong congress last month that the government planned to ease up on companies that aren’t conforming with its broader foreign investment strategy. “I would think that they’ll be paying even more attention to anything looking like a getrich-quick scheme,” said Marshall Meyer, professor emeritus at the University of Pennsylvania’s Wharton School. Global commercial real-estate participants keen to know the impact of Beijing’s capital controls might not need to look much further than the cat-and-mouse game that is being played in the residential markets for years. Chinese individuals have long faced limits to overseas investments equal to about $50,000. But for years, Chinese home buyers have been figuring out ways to work around these restrictions. As a result, they have become a major buying force in the U.S., U.K., Australia, Canada and other major global markets. To be sure, the Chinese government from time to time has tightened restrictions to curb outflows and often these crackdowns have had shortterm effects on deal activity in global markets. Indeed, new regulations that went into effect is year have had a damping effect on some markets, brokers in numerous U.S. and European cities report. Starting late last year, the Chinese government began imposing new capital controls on overseas commercial property investment. Institutional investors wary of getting caught in the crosshairs of officials in Beijing have become more selective in their investments and are steering clear of splashy deals. But market participants say these slowdowns typically don’t last. “People will find alternatives,” said Dehlan Gwo, a member of Realogics Sotheby’s International Realty’s Asia Services Group, in a recent report. “I think we will see more and more creative ways to move money out of the mainland.” Chinese buyers remained the top foreign buyer of residential real estate in the U.S. in the 12-month period ended March with a $31.7 billion share of the $153 billion in total sales, according to a report by the National Association of Realtors. In the previous 12month period, the tally was $27.3 billion, the report said. In Australia, about 90% of foreign demand is from China and there is little sign of it ebbing, according to an October report by Credit Suisse. “There are now 1.6 million U.S. dollar millionaires in China,” the report said. “We think these individuals dominate the buying of Aussie property.” Many people familiar with the restrictions say they don’t affect China’s wealthiest, many of whom already hold diversified assets outside the country and have moved enough money out of China, Chinese have faced limits on investments abroad equal to roughly $50,000. often to accounts in Hong Kong or Singapore, to continue buying overseas. Still, other brokers—especially those who deal with lower priced properties—saying the most recent intensification of restrictions are having an impact. Mark McLaughlin, chief executive of Pacific Union International Inc., said that across California, sales volume from mainland Chinese buyers in the first half of 2017 is 50% less than the prior year. His firm, he said, has started searching for “the next international buyer,” kicking off digital marketing campaigns in cities such as Mumbai. ADVERTISEMENT Business Real Estate & Services To advertise: 800-366-3975 or WSJ.com/classiﬁeds *+,*- (#( .&-# )/)0/12#,,# # ! " ! # $ ,-., /01 ! "#$$% #&'($'$) !* +++ # # 2 # # # )! &*+ , + -+ ./ ! " #$ % & !" # $ % !!" &'( !" # $ & ' ( ! )' !! %! & '( %)( !" # !" # $ % #& + , , - + . , ,/ + ,0, + , + ,, 0,/ ., , + 0 . '( # ' # 3 !" # $ %& " '( % ) $ $$ * % $ " % ) THE WALL STREET JOURNAL. Wednesday, November 1, 2017 | B11 * * BIGGEST 1,000 STOCKS How to Read the Stock Tables The following explanations apply to NYSE, NYSE Arca, NYSE MKT and Nasdaq Stock Market listed securities. Prices are composite quotations that include primary market trades as well as trades reported by Nasdaq OMX BXSM (formerly Boston), Chicago Stock Exchange, CBOE, National Stock Exchange, ISE and BATS. The list comprises the 1,000 largest companies based on market capitalization. Underlined quotations are those stocks with large changes in volume compared with the issue’s average trading volume. Boldfaced quotations highlight those issues whose price changed by 5% or more if their previous closing price was $2 or higher. 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. Tuesday, October 31, 2017 NYSE s ABB ABB 26.13 t AES AES 10.63 Aflac AFL 83.89 AT&T T 33.65 AbbottLabs ABT 54.23 AbbVie ABBV 90.25 Accenture ACN 142.36 AcuityBrands AYI 167.20 Adient ADNT 84.36 AdvanceAuto AAP 81.74 AdvSemiEngg ASX 6.16 Aegon AEG 5.87 s AerCap AER 52.64 Aetna AET 170.03 AffiliatedMgrs AMG 186.50 AgilentTechs A 68.03 AgnicoEagle AEM 44.63 Agrium AGU 108.92 AirProducts APD 159.43 AlaskaAir ALK 66.03 Albemarle ALB 140.89 Alcoa AA 47.78 AlexandriaRealEst ARE 123.96 s Alibaba BABA 184.89 Alleghany Y 566.22 Allegion ALLE 83.39 Allergan AGN 177.23 AllianceData ADS 223.73 AllianceBernstein AB 25.85 AlliantEnergy LNT 43.26 s AllisonTransm ALSN 42.49 Allstate ALL 93.86 AllyFinancial ALLY 26.13 AlticeUSA ATUS 23.68 Altria MO 64.22 AlumofChina ACH 19.92 Ambev ABEV 6.33 s Ameren AEE 61.99 AmericaMovil AMX 17.12 AmericaMovil A AMOV 16.86 AEP AEP 74.41 AmericanExpress AXP 95.52 AmericanFin AFG 105.49 AIG AIG 64.61 AmerTowerREIT AMT 143.67 AmerWaterWorks AWK 87.76 Amerigas APU 45.25 Ameriprise AMP 156.54 AmerisourceBrgn ABC 76.95 Ametek AME 67.49 Amphenol APH 87.00 AnadarkoPetrol APC 49.37 Andeavor ANDV 106.24 AB InBev BUD 122.78 AnnalyCap NLY 11.46 AnteroResources AR 19.40 Anthem ANTM 209.21 Aon AON 143.43 Apache APA 41.37 ApartmtInv AIV 43.98 ApolloGlobalMgmt APO 31.58 AquaAmerica WTR 35.48 s Aramark ARMK 43.69 ArcelorMittal MT 28.60 t ArcherDaniels ADM 40.87 Arconic ARNC 25.12 s AristaNetworks ANET 199.89 ArrowElec ARW 83.59 AstraZeneca AZN 34.50 Athene ATH 52.13 AtmosEnergy ATO 87.24 Autohome ATHM 57.51 Autoliv ALV 124.86 AutoZone AZO 589.50 Avalonbay AVB 181.33 s Avangrid AGR 51.73 s AveryDennison AVY 106.17 AxaltaCoating AXTA 33.25 0.75 0.01 0.06 0.11 -0.06 -0.71 -0.93 1.72 0.86 -0.26 0.01 0.04 0.12 -1.20 1.00 0.54 -0.60 0.57 -0.52 -0.43 1.38 0.36 2.24 3.31 1.26 1.42 -1.41 -0.74 -0.25 0.08 0.19 -0.21 0.02 0.16 0.17 0.72 -0.02 0.16 0.14 0.10 0.24 0.45 0.13 -0.17 0.80 ... 0.21 -1.76 0.02 -0.14 1.24 0.68 1.32 1.97 -0.10 0.44 -0.25 0.34 0.56 -0.22 0.13 0.06 0.23 -0.31 -1.94 0.34 3.73 0.38 0.73 -0.81 0.30 0.54 1.85 -0.65 -0.56 0.90 0.85 0.82 Net Sym Close Chg Stock Net Sym Close Chg Stock s s s s s s s t BB&T BBT 49.24 0.13 BCE BCE 46.16 -0.31 BHPBilliton BHP 40.98 0.19 BHPBilliton BBL 36.32 0.30 BP BP 40.67 1.05 BRF BRFS 13.47 0.10 BT Group BT 17.51 -0.05 BWX Tech BWXT 59.92 -0.34 BakerHughes BHGE 31.43 -0.07 Ball BLL 42.93 0.29 BancoBilbaoViz BBVA 8.74 0.13 BancodeChile BCH 92.12 -0.45 BancoMacro BMA 125.92 -1.34 BcoSantChile BSAC 31.28 -0.33 BancoSantander SAN 6.74 0.01 BanColombia CIB 37.75 -0.28 BankofAmerica BAC 27.39 -0.21 BankofMontreal BMO 76.61 -0.67 BankNY Mellon BK 51.45 -0.20 BkNovaScotia BNS 64.52 -0.09 Barclays BCS 9.84 0.18 Bard CR BCR 327.07 0.20 BarrickGold ABX 14.45 -0.24 BaxterIntl BAX 64.47 -0.10 BectonDickinson BDX 208.67 0.02 Berkley WRB 68.58 -0.17 BerkHathwy A BRK.A 280470-1470.00 BerkHathwy B BRK.B 186.94 -0.91 BerryGlobal BERY 59.45 -0.35 BestBuy BBY 55.98 0.60 Bio-RadLab A BIO 219.79 0.78 BlackKnight BKI 45.35 -0.60 BlackBerry BB 10.94 -0.15 BlackRock BLK 470.83 -1.46 BlackstoneGroup BX 33.29 0.24 BoardwalkPipe BWP 14.02 -0.18 Boeing BA 257.98 -1.27 BorgWarner BWA 52.72 0.33 BostonProperties BXP 121.18 0.37 BostonScientific BSX 28.14 -0.02 Braskem BAK 31.97 -0.59 Bristol-Myers BMY 61.66 0.82 BritishAmTob BTI 64.40 -0.22 BroadridgeFinl BR 85.92 0.28 BrookfieldMgt BAM 41.94 -0.08 BrookfieldInfr BIP 42.37 -0.10 Brown&Brown BRO 49.84 0.35 Brown-Forman A BF.A 57.33 1.50 Brown-Forman B BF.B 57.02 1.31 BuckeyePtrs BPL 53.11 0.90 Bunge BG 68.78 -0.49 BurlingtonStores BURL 93.89 4.89 CBD Pao CBD 23.23 -0.18 CBRE Group CBG 39.32 0.08 CBS A CBS.A 56.91 -0.58 CBS B CBS 56.12 ... CF Industries CF 37.98 0.61 CGI Group GIB 53.14 -0.64 CIT Group CIT 46.62 -0.45 CMS Energy CMS 48.37 0.57 CNA Fin CNA 54.13 0.57 CNOOC CEO 136.70 2.40 CPFLEnergia CPL 16.75 0.05 CRH CRH 37.52 0.23 CVS Health CVS 68.53 0.08 CabotOil COG 27.70 0.51 CamdenProperty CPT 91.24 0.15 CampbellSoup CPB 47.37 1.01 CIBC CM 88.05 -0.55 CanNtlRlwy CNI 80.49 -0.72 CanNaturalRes CNQ 34.90 0.10 CanPacRlwy CP 173.44 -1.30 Canon CAJ 37.75 0.26 CapitalOne COF 92.18 -0.25 CardinalHealth CAH 61.90 0.20 Carlisle CSL 109.83 -0.66 CarMax KMX 75.10 0.15 Carnival CCL 66.39 0.37 Carnival CUK 66.74 0.39 Caterpillar CAT 135.80 -0.69 Celanese A CE 104.31 -0.53 Cemex CX 8.11 0.07 Net Sym Close Chg Stock CenovusEnergy CVE 9.72 Centene CNC 93.67 CenterPointEner CNP 29.58 CentraisElBras EBR 6.71 CenturyLink CTL 18.99 Chemours CC 56.61 Chevron CVX 115.89 ChinaEastrnAir CEA 25.48 ChinaLifeIns LFC 16.67 ChinaMobile CHL 50.45 ChinaPetrol SNP 73.64 ChinaSoAirlines ZNH 36.98 ChinaTelecom CHA 50.37 ChinaUnicom CHU 14.13 Chipotle CMG 271.90 Chubb CB 150.82 ChunghwaTelecom CHT 34.02 Church&Dwight CHD 45.17 Cigna CI 197.22 CimarexEnergy XEC 116.93 Citigroup C 73.50 CitizensFin CFG 38.01 Clorox CLX 126.53 Coca-Cola KO 45.98 Coca-Cola Euro CCE 40.86 Coca-Cola Femsa KOF 68.44 Colgate-Palmolive CL 70.45 ColonyNorthStar CLNS 12.28 Comerica CMA 78.57 SABESP SBS 9.12 ConagraBrands CAG 34.16 ConchoRscs CXO 134.21 ConocoPhillips COP 51.15 ConEd ED 86.05 ConstBrands A STZ 219.09 ConstBrands B STZ.B 218.59 ContinentalRscs CLR 40.71 Cooper COO 240.26 Corning GLW 31.31 Coty COTY 15.40 Credicorp BAP 209.44 CreditSuisse CS 15.72 CrestwoodEquity CEQP 25.00 CrownCastle CCI 107.08 CrownHoldings CCK 60.17 Cullen/Frost CFR 98.50 Cummins CMI 176.88 DTE Energy DTE 110.46 DXC Tech DXC 91.52 Danaher DHR 92.27 Darden DRI 82.27 DaVita DVA 60.74 Deere DE 132.88 DellTechnologies DVMT 82.77 DelphiAutomotive DLPH 99.38 DeltaAir DAL 50.03 DeutscheBank DB 16.27 DevonEnergy DVN 36.90 Diageo DEO 137.01 DigitalRealty DLR 118.44 DiscoverFinSvcs DFS 66.53 Disney DIS 97.81 DolbyLab DLB 57.94 DollarGeneral DG 80.84 DominionEner D 81.14 Domino's DPZ 183.00 Donaldson DCI 47.21 DouglasEmmett DEI 39.79 Dover DOV 95.49 DowDuPont DWDP 72.31 DrPepperSnap DPS 85.66 DrReddy'sLab RDY 36.37 DukeEnergy DUK 88.31 DukeRealty DRE 28.48 ENI E 32.65 EOG Rscs EOG 99.87 EQT EQT 62.54 EQT Midstream EQM 73.06 EastmanChem EMN 90.81 Eaton ETN 80.02 EatonVance EV 50.47 Ecolab ECL 130.66 t t s s s s s 0.06 -0.14 0.11 -0.08 0.59 -0.38 1.50 -0.27 0.07 0.13 -0.29 -0.54 0.32 -0.10 3.20 -2.07 0.08 0.36 -0.50 -0.21 -0.28 0.11 1.21 0.12 0.51 0.05 1.25 -0.19 -0.25 -0.01 0.63 1.41 -0.24 0.15 6.09 5.07 0.26 -2.49 0.05 0.43 -0.25 -0.20 1.20 0.97 0.90 -0.49 -3.47 0.12 0.34 0.46 -0.50 -0.33 0.58 -0.38 1.13 -0.30 0.01 0.90 0.45 0.85 0.02 -0.23 0.26 -0.39 -0.34 1.30 -0.17 0.21 -0.36 0.63 0.61 0.22 0.20 0.10 0.44 0.34 0.59 0.68 -1.01 0.79 0.37 -0.26 BANKRATE.COM® MMA, Savings and CDs Average Yields of Major Banks Type Net Sym Close Chg 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. s t s s s t s t s s s s s Ecopetrol EC 11.09 EdisonInt EIX 79.95 EdwardsLife EW 102.23 EmersonElectric EMR 64.46 EnbridgeEnPtrs EEP 15.08 Enbridge ENB 38.46 Encana ECA 11.70 EnelAmericas ENIA 10.60 EnelChile ENIC 5.89 EnelGenChile EOCC 25.90 EnergyTrfrEquity ETE 17.75 EnergyTransfer ETP 17.41 Entergy ETR 86.26 EnterpriseProd EPD 24.50 Equifax EFX 108.53 EquityLife ELS 88.48 EquityResdntl EQR 67.26 EssexProp ESS 262.43 EsteeLauder EL 111.81 EverestRe RE 237.45 EversourceEner ES 62.64 Exelon EXC 40.21 ExtraSpaceSt EXR 81.59 ExxonMobil XOM 83.35 FMC FMC 92.86 FactSet FDS 189.87 FederalRealty FRT 120.52 FedEx FDX 225.81 Ferrari RACE 119.68 FiatChrysler FCAU 17.35 FibriaCelulose FBR 15.94 FidelityNatlFin FNF 37.42 FNFV Group FNFV 17.25 FidelityNtlInfo FIS 92.76 58.com WUBA 67.17 FirstAmerFin FAF 54.42 FirstData FDC 17.81 FirstRepBank FRC 97.40 FirstEnergy FE 32.95 FleetCorTech FLT 165.27 Flowserve FLS 44.07 Fluor FLR 43.09 FomentoEconMex FMX 87.75 FordMotor F 12.27 ForestCIty A FCE.A 24.63 Fortis FTS 36.83 Fortive FTV 72.26 FortBrandsHome FBHS 66.06 Franco-Nevada FNV 79.44 FranklinRscs BEN 42.13 Freeport-McMoRan FCX 13.98 FreseniusMed FMS 48.38 GGP GGP 19.46 Gallagher AJG 63.33 Gap GPS 25.99 Gartner IT 125.31 Gazit-Globe GZT 9.42 GeneralDynamics GD 202.98 GeneralElec GE 20.16 GeneralMills GIS 51.92 GeneralMotors GM 42.98 Genpact G 30.45 GenuineParts GPC 88.23 Gerdau GGB 3.31 Gildan GIL 30.60 GlaxoSmithKline GSK 36.43 GlobalPayments GPN 103.95 GoDaddy GDDY 46.70 Goldcorp GG 13.06 GoldmanSachs GS 242.48 Graco GGG 131.79 Grainger GWW 197.70 GreatPlainsEner GXP 32.83 GpoAvalAcciones AVAL 8.32 GpFinSantandMex BSMX 8.42 GrupoTelevisa TV 21.89 GuidewireSoftware GWRE 79.98 HCA Healthcare HCA 75.65 HCP HCP 25.84 HDFC Bank HDB 92.30 HP HPQ 21.55 HSBC HSBC 48.77 Halliburton HAL 42.74 Hanesbrands HBI 22.50 HarleyDavidson HOG 47.34 Harris HRS 139.32 HartfordFinl HIG 55.05 HealthcareAmer HTA 30.05 Heico HEI 90.68 Heico A HEI.A 76.10 Helmerich&Payne HP 54.31 Herbalife HLF 72.62 Hershey HSY 106.18 Hess HES 44.16 HewlettPackard HPE 13.92 Hilton HLT 72.28 HollyFrontier HFC 36.95 HomeDepot HD 165.78 HondaMotor HMC 31.09 Honeywell HON 144.16 HormelFoods HRL 31.16 DR Horton DHI 44.21 HostHotels HST 19.56 HuanengPower HNP 26.60 Hubbell HUBB 125.82 Humana HUM 255.35 HuntingtonIngalls HII 232.83 Huntsman HUN 32.02 HyattHotels H 62.66 ICICI Bank IBN 9.15 0.10 0.36 0.60 -2.88 0.06 -0.12 0.42 0.01 -0.04 -1.07 0.06 0.11 -0.13 -0.30 -0.48 0.72 0.24 1.63 0.96 -1.67 0.15 -0.03 0.50 -0.19 0.51 1.75 -0.46 -1.91 2.50 0.10 0.21 0.27 0.05 -3.31 2.38 1.25 0.01 -0.08 0.28 1.57 0.19 0.10 -0.59 0.17 0.12 -0.16 -0.20 -0.09 -0.50 -0.41 0.04 -0.04 -0.49 0.59 -0.09 0.93 -0.10 -3.19 -0.25 1.26 -0.39 0.25 0.19 -0.06 -0.45 -0.26 2.07 0.38 -0.32 1.59 1.04 -1.69 -0.02 -0.05 -0.06 -0.45 2.58 -0.53 0.24 1.62 0.16 0.03 -0.19 -0.16 0.14 3.68 -0.13 0.16 0.10 0.20 0.49 0.33 1.45 0.50 -0.06 -0.37 0.04 0.47 -0.01 -0.48 1.01 -0.10 0.26 0.25 0.70 -0.31 0.68 0.66 -0.05 0.11 Stock s s s t s s s s Net Sym Close Chg ING Groep ING 18.52 -0.03 Invesco IVZ 35.79 -0.25 IDEX IEX 128.21 0.25 IllinoisToolWks ITW 156.52 -0.83 Infosys INFY 14.85 0.16 Ingersoll-Rand IR 88.60 -0.28 Ingredion INGR 125.35 0.84 ICE ICE 66.10 0.84 InterContinentl IHG 55.59 0.20 IBM IBM 154.06 -0.30 IntlFlavors IFF 147.42 0.65 IntlPaper IP 57.27 0.08 Interpublic IPG 19.25 -0.06 InvitationHomes INVH 22.57 -0.30 IronMountain IRM 40.00 -0.11 IsraelChemicals ICL 4.17 0.02 ItauUnibanco ITUB 12.81 -0.32 JPMorganChase JPM 100.61 -0.80 JacobsEngineering JEC 58.21 -0.25 JamesHardie JHX 15.39 ... JanusHenderson JHG 34.75 0.04 J&J JNJ 139.41 -0.59 JohnsonControls JCI 41.39 -0.75 JonesLangLaSalle JLL 129.49 2.85 JuniperNetworks JNPR 24.83 -0.09 KAR Auction KAR 47.33 0.42 KB Fin KB 52.51 -0.09 KKR KKR 20.05 ... KT KT 14.39 0.21 KSCitySouthern KSU 104.22 -0.75 Kellogg K 62.53 3.66 KeyCorp KEY 18.25 0.02 KeysightTechs KEYS 44.67 0.42 KilroyRealty KRC 71.23 0.93 KimberlyClark KMB 112.51 1.24 KimcoRealty KIM 18.16 -0.27 KinderMorgan KMI 18.11 0.01 Knight-Swift KNX 41.45 0.46 Kohl's KSS 41.76 0.26 KoninklijkePhil PHG 40.79 0.53 KoreaElcPwr KEP 17.62 0.14 Kroger KR 20.70 0.06 Kyocera KYO 66.80 -2.45 LATAMAirlines LTM 13.58 -0.06 L Brands LB 43.04 0.21 LG Display LPL 12.99 ... LINE LN 41.51 -0.29 L3 Tech LLL 187.18 -0.59 LabCpAm LH 153.71 -0.46 LambWeston LW 50.99 0.61 LasVegasSands LVS 63.38 1.92 Lazard LAZ 47.54 0.16 Lear LEA 175.59 2.30 Leggett&Platt LEG 47.26 0.06 Leidos LDOS 62.52 0.58 Lennar A LEN 55.67 -0.01 Lennar B LEN.B 47.95 0.29 LennoxIntl LII 191.13 -0.01 LeucadiaNatl LUK 25.30 -0.02 Level3Comms LVLT 53.63 0.93 LibertyProperty LPT 42.88 0.07 EliLilly LLY 81.94 -0.71 LincolnNational LNC 75.78 -0.62 LionsGate A LGF.A 29.02 -0.03 LionsGate B LGF.B 27.66 ... LiveNationEnt LYV 43.78 0.67 LloydsBanking LYG 3.69 0.01 LockheedMartin LMT 308.16 -0.47 Loews L 49.51 0.05 Lowe's LOW 79.95 0.54 LyondellBasell LYB 103.53 -2.47 M&T Bank MTB 166.77 -0.13 MGM Resorts MGM 31.35 0.78 MPLX MPLX 35.26 -0.04 MSCI MSCI 117.36 -0.29 Macerich MAC 54.60 -1.10 MacquarieInfr MIC 69.55 -0.41 Macy's M 18.76 -0.08 MagellanMid MMP 68.71 -0.06 MagnaIntl MGA 54.55 0.09 Manpower MAN 123.28 1.43 ManulifeFin MFC 20.10 -0.12 MarathonOil MRO 14.22 0.06 MarathonPetrol MPC 59.74 0.68 Markel MKL 1084.30 -12.72 Marsh&McLennan MMC 80.93 0.31 MartinMarietta MLM 216.85 -1.01 Masco MAS 39.82 0.33 Mastercard MA 148.77 -0.18 McCormick MKC 99.53 1.55 McCormickVtg MKC.V 99.78 2.62 McDonalds MCD 166.91 0.68 McKesson MCK 137.88 2.86 Medtronic MDT 80.52 -0.01 Merck MRK 55.09 0.38 MetLife MET 53.58 -0.39 MettlerToledo MTD 682.63 7.41 MichaelKors KORS 48.81 0.01 MicroFocus MFGP 34.93 0.65 MidAmApt MAA 102.35 0.36 MitsubishiUFJ MTU 6.79 -0.07 MizuhoFin MFG 3.67 -0.01 MobileTeleSys MBT 10.61 0.05 MohawkIndustries MHK 261.76 -1.20 MolsonCoors B TAP 80.87 1.92 Monsanto MON 121.10 -0.09 Moody's MCO 142.41 -0.57 MorganStanley MS 50.00 -0.46 Mosaic MOS 22.34 1.49 Stock s t s t t s s s s t s s s s s s s Net Sym Close Chg MotorolaSolutions MSI 90.54 NRG Energy NRG 25.00 NTTDoCoMo DCM 24.31 NVR NVR 3281.37 NationalGrid NGG 61.05 NatlOilwell NOV 34.19 NatlRetailProp NNN 40.18 NewOrientalEduc EDU 83.24 NY CmntyBcp NYCB 12.56 NewellBrands NWL 40.78 NewfieldExpln NFX 30.79 NewmontMining NEM 36.16 NextEraEnergy NEE 155.07 NielsenHoldings NLSN 37.07 Nike NKE 54.99 NiSource NI 26.37 NobleEnergy NBL 27.87 Nokia NOK 4.89 NomuraHoldings NMR 5.64 Nordstrom JWN 39.65 NorfolkSouthern NSC 131.42 NorthropGrumman NOC 295.53 Novartis NVS 82.58 NovoNordisk NVO 49.79 Nucor NUE 57.83 NuSTAREnergy NS 33.30 OGE Energy OGE 36.84 ONEOK OKE 54.27 OccidentalPetrol OXY 64.57 Och-Ziff OZM 3.80 Olin OLN 36.53 OmegaHealthcare OHI 28.86 Omnicom OMC 67.19 Oracle ORCL 50.90 Orange ORAN 16.40 OrbitalATK OA 132.93 Orix IX 85.82 Oshkosh OSK 91.56 OwensCorning OC 82.69 PG&E PCG 57.77 PLDT PHI 33.06 PNC Fin PNC 136.79 POSCO PKX 72.98 PPG Ind PPG 116.24 PPL PPL 37.56 PVH PVH 126.81 PackagingCpAm PKG 116.27 PaloAltoNtwks PANW 147.20 ParkHotels PK 28.79 ParkerHannifin PH 182.61 ParsleyEnergy PE 26.60 Pearson PSO 9.28 PembinaPipeline PBA 33.07 Pentair PNR 70.46 PepsiCo PEP 110.23 PerkinElmer PKI 72.32 Perrigo PRGO 80.99 PetroChina PTR 65.50 PetroleoBrasil PBR 10.65 PetroleoBrasilA PBR.A 10.25 Pfizer PFE 35.06 PhilipMorris PM 104.64 Phillips66 PSX 91.08 PinnacleFoods PF 54.42 PinnacleWest PNW 87.71 PioneerNatRscs PXD 149.67 PlainsAllAmPipe PAA 19.97 PlainsGP PAGP 20.40 PolarisIndustries PII 118.43 Potash POT 19.47 Praxair PX 146.12 PrincipalFin PFG 65.85 Procter&Gamble PG 86.34 Progressive PGR 48.65 Prologis PLD 64.58 PrudentialFin PRU 110.46 Prudential PUK 49.03 PublicServiceEnt PEG 49.20 PublicStorage PSA 207.25 PulteGroup PHM 30.23 QuantaServices PWR 37.73 Qudian QD 24.90 QuestDiag DGX 93.78 QuintilesIMS Q 108.10 RELX RENX 22.60 RELX RELX 23.39 RPM RPM 53.33 RalphLauren RL 89.43 RaymondJames RJF 84.78 Raytheon RTN 180.20 RealtyIncome O 53.67 RedHat RHT 120.83 RegencyCtrs REG 61.55 RegionsFin RF 15.48 ReinsuranceGrp RGA 149.38 RepublicServices RSG 65.07 ResMed RMD 84.18 RestaurantBrands QSR 64.59 RiceEnergy RICE 28.35 RioTinto RIO 47.93 RobertHalf RHI 51.77 Rockwell ROK 200.82 RockwellCollins COL 135.60 RogersComm B RCI 51.90 Rollins ROL 43.91 RoperTech ROP 258.17 RoyalBkCanada RY 78.15 RoyalBkScotland RBS 7.59 RoyalCaribbean RCL 123.77 RoyalDutchA RDS.A 63.03 0.17 0.02 0.04 41.37 0.28 -0.09 ... 0.49 0.02 0.32 0.70 -0.07 -0.29 -0.59 -0.28 0.12 -0.40 0.07 -0.12 -0.35 -1.38 -0.84 0.84 -0.07 -0.64 -0.65 -0.06 0.23 -0.39 -0.09 0.80 -2.11 -0.33 0.22 -0.01 -0.07 -0.35 1.99 1.20 0.50 0.40 -0.37 -0.50 0.08 0.07 -0.55 0.70 -0.37 0.63 0.67 0.87 -0.10 -0.01 0.36 0.58 0.49 -2.71 -0.10 0.05 0.01 -0.09 -0.06 0.06 0.76 0.18 3.41 0.19 0.20 1.18 0.16 -1.33 -0.67 0.07 -0.01 0.50 -1.14 0.28 -0.35 -1.50 0.44 -0.33 2.71 ... 0.93 0.19 0.18 0.15 -2.38 -0.23 0.62 -0.29 -0.27 -0.69 -0.12 -1.23 -0.43 1.19 -0.01 0.31 0.60 0.77 13.82 -0.09 -0.92 0.68 1.12 -0.58 0.01 1.78 0.84 Stock Net Sym Close Chg s RoyalDutchB RDS.B 65.36 s SAP SAP 114.20 S&P Global SPGI 156.47 SINOPECShanghai SHI 60.50 SK Telecom SKM 26.14 SLGreenRealty SLG 95.68 s Salesforce.com CRM 102.34 Sanofi SNY 47.28 s SantanderConUSA SC 16.64 Sasol SSL 29.11 t Scana SCG 43.14 Schlumberger SLB 64.00 SchwabC SCHW 44.84 ScottsMiracleGro SMG 99.62 SealedAir SEE 44.23 SemicondctrMfg SMI 7.59 SempraEnergy SRE 117.50 SensataTech ST 48.91 ServiceCorp SCI 35.46 ServiceMaster SERV 47.11 ServiceNow NOW 126.37 ShawComm B SJR 22.84 SherwinWilliams SHW 395.15 ShinhanFin SHG 45.27 Shopify SHOP 99.49 SimonProperty SPG 155.33 SmithAO AOS 59.20 Smith&Nephew SNN 38.26 Smucker SJM 106.05 Snap SNAP 15.34 SnapOn SNA 157.78 SOQUIMICH SQM 59.74 s Sony SNE 43.41 Southern SO 52.20 SoCopper SCCO 42.95 SouthwestAirlines LUV 53.86 SpectraEnerPtrs SEP 43.12 SpectrumBrands SPB 109.92 s SpiritAeroSys SPR 80.10 Sprint S 6.54 s Square SQ 37.19 StanleyBlackDck SWK 161.55 StateStreet STT 92.00 Statoil STO 20.31 s Steris STE 93.33 STMicroelec STM 23.57 Stryker SYK 154.87 SumitomoMits SMFG 8.06 SunCommunities SUI 90.26 SunLifeFinancial SLF 38.93 SuncorEnergy SU 33.96 SunTrustBanks STI 60.21 SynchronyFin SYF 32.62 Syngenta SYT 92.25 Sysco SYY 55.62 TAL Education TAL 27.50 s TE Connectivity TEL 90.97 Telus TU 36.22 Ternium TX 31.01 TIM Part TSU 18.44 TJX TJX 69.80 s TableauSoftware DATA 81.09 TaiwanSemi TSM 42.33 TargaResources TRGP 41.50 Target TGT 59.04 TataMotors TTM 32.76 TechnipFMC FTI 27.39 TeckRscsB TECK 20.44 TelecomArgentina TEO 32.61 TelecomItalia TI 8.61 TelecomItalia A TI.A 7.11 s TeledyneTech TDY 169.96 Teleflex TFX 236.98 TelefonicaBras VIV 15.40 Telefonica TEF 10.41 TelekmIndonesia TLK 30.04 Tenaris TS 27.25 s Teradyne TER 42.89 TevaPharm TEVA 13.80 Textron TXT 52.74 ThermoFisherSci TMO 193.83 ThomsonReuters TRI 46.84 s ThorIndustries THO 136.22 3M MMM 230.19 Tiffany TIF 93.62 TimeWarner TWX 98.29 s Toll Bros TOL 46.04 Torchmark TMK 84.13 Toro TTC 62.85 TorontoDomBk TD 56.85 s Total TOT 55.72 s TotalSystem TSS 72.05 ToyotaMotor TM 124.00 TransCanada TRP 47.48 TransDigm TDG 277.50 TransUnion TRU 52.49 Travelers TRV 132.45 TurkcellIletism TKC 9.39 TurquoiseHill TRQ 3.07 Twitter TWTR 20.62 TylerTech TYL 177.29 s TysonFoods TSN 72.91 UBS Group UBS 17.01 UDR UDR 38.79 UGI UGI 47.86 US Foods USFD 27.28 UltraparPart UGP 23.89 t UnderArmour A UAA 12.52 t UnderArmour C UA 11.53 0.94 0.40 0.22 -0.27 0.63 1.15 1.64 -0.15 -0.05 0.26 -2.77 -0.11 -0.01 0.81 0.13 0.30 0.05 0.08 0.21 2.86 1.32 0.26 0.90 -0.52 -9.87 -2.41 0.02 0.25 4.14 -0.34 0.69 -0.05 4.56 0.11 0.18 -0.87 0.33 1.80 -0.31 0.20 1.44 -0.08 -1.29 -0.23 1.20 0.02 -0.50 -0.08 0.26 -0.05 0.10 -0.14 0.02 0.13 0.93 0.32 1.47 -0.30 -0.65 0.36 0.45 1.56 0.20 0.21 -0.51 -0.57 0.35 -0.32 0.04 -0.04 0.10 1.08 0.22 0.08 0.14 0.04 0.14 0.20 0.25 0.14 1.81 -0.18 1.54 -0.83 0.07 -0.20 0.53 -0.39 0.35 0.05 0.21 1.07 -0.39 -0.16 0.30 0.02 -0.17 -0.01 0.02 -0.63 0.81 1.44 0.09 0.23 -0.25 0.29 -0.09 -3.89 -3.21 Stock s s s s Net Sym Close Chg Unilever UN 57.96 Unilever UL 56.65 UnionPacific UNP 115.79 UnitedContinental UAL 58.48 UnitedMicro UMC 2.60 UPS B UPS 117.53 UnitedRentals URI 141.48 US Bancorp USB 54.38 US Steel X 25.32 UnitedTech UTX 119.76 UnitedHealth UNH 210.22 UniversalHealthB UHS 102.70 UnumGroup UNM 52.04 VEREIT VER 7.89 VF VFC 69.65 Visa V 109.98 VailResorts MTN 229.02 Vale VALE 9.79 ValeroEnergy VLO 78.89 Vantiv VNTV 70.00 VarianMed VAR 104.19 Vedanta VEDL 20.60 VeevaSystems VEEV 60.94 Ventas VTR 62.75 Verizon VZ 47.87 VistraEnergy VST 19.44 VMware VMW 119.69 VornadoRealty VNO 74.86 VoyaFinancial VOYA 40.16 VulcanMaterials VMC 121.75 WABCO WBC 147.57 WEC Energy WEC 67.39 W.P.Carey WPC 68.15 Wabtec WAB 76.50 Wal-Mart WMT 87.31 WasteConnections WCN 70.67 WasteMgt WM 82.17 Waters WAT 196.05 Watsco WSO 166.57 Wayfair W 69.90 WellCareHealth WCG 197.74 WellsFargo WFC 56.14 Welltower HCN 66.96 WestPharmSvcs WST 101.40 WestarEnergy WR 53.48 WestAllianceBcp WAL 55.80 WesternGasEquity WGP 39.55 WesternGasPtrs WES 47.89 WesternUnion WU 19.86 WestlakeChem WLK 84.91 WestpacBanking WBK 25.38 WestRock WRK 61.33 Weyerhaeuser WY 35.91 WheatonPrecMetals WPM 20.74 Whirlpool WHR 163.93 Williams WMB 28.50 WilliamsPartners WPZ 37.04 Wipro WIT 5.36 WooriBank WF 43.90 Wyndham WYN 106.85 XPO Logistics XPO 69.35 XcelEnergy XEL 49.52 Xerox XRX 30.31 Xylem XYL 66.53 YPF YPF 24.56 YumBrands YUM 74.45 YumChina YUMC 40.35 ZTO Express ZTO 15.99 ZayoGroup ZAYO 36.06 ZimmerBiomet ZBH 121.62 Zoetis ZTS 63.82 1.03 1.13 -0.58 -0.56 0.01 -0.56 -2.11 0.12 -1.14 -0.07 0.83 0.42 -0.36 0.07 -0.26 -0.06 2.65 -0.03 0.49 0.77 0.67 -0.40 1.19 -0.50 0.04 0.87 -0.24 2.48 -0.17 -0.22 1.18 -0.08 -0.23 -0.06 0.36 -0.41 0.30 -0.17 1.34 0.24 16.56 0.29 -0.25 0.05 0.05 0.02 0.54 0.29 0.14 -0.72 -0.23 1.01 0.30 -0.47 2.27 -0.04 -0.29 0.12 -1.00 1.11 0.30 0.23 0.08 1.89 0.09 -0.51 -0.08 0.06 0.23 0.27 0.58 s s s t t s s s s s s NASDAQ s s s s s s s AGNC Invt AGNC 20.13 Ansys ANSS 136.71 ASML ASML 180.75 Abiomed ABMD 192.92 ActivisionBliz ATVI 65.49 AdobeSystems ADBE 175.16 AkamaiTech AKAM 52.25 AlexionPharm ALXN 119.66 AlignTech ALGN 238.98 Alkermes ALKS 48.76 AlnylamPharm ALNY 121.84 Alphabet A GOOGL 1033.04 Alphabet C GOOG 1016.64 Altaba AABA 70.12 Amazon.com AMZN 1105.28 Amdocs DOX 65.10 Amerco UHAL 392.64 AmericanAirlines AAL 46.82 Amgen AMGN 175.22 AnalogDevices ADI 91.30 Apple AAPL 169.04 AppliedMaterials AMAT 56.43 ArchCapital ACGL 99.64 Atlassian TEAM 48.37 Autodesk ADSK 124.96 ADP ADP 116.26 Baidu BIDU 243.94 BankofOzarks OZRK 46.62 Biogen BIIB 311.66 BioMarinPharm BMRN 82.09 Bioverativ BIVV 56.50 bluebirdbio BLUE 139.10 BrighthouseFin BHF 62.18 Broadcom AVGO 263.91 CA CA 32.38 CDK Global CDK 63.56 -0.18 0.91 2.82 13.44 0.19 -0.87 -0.21 -8.15 3.41 -0.13 -1.12 -0.09 -0.47 1.26 -5.57 0.14 -2.73 -0.43 0.63 -0.02 2.32 0.53 -0.19 0.06 1.05 -0.72 7.52 0.12 -4.14 0.12 0.66 -2.50 -0.28 2.68 0.06 -2.80 Net Sym Close Chg Stock s s s s s s CDW CDW 70.00 CH Robinson CHRW 78.53 CME Group CME 137.17 CSX CSX 50.43 CadenceDesign CDNS 43.16 Carlyle CG 22.05 CboeGlobalMkts CBOE 113.06 Celgene CELG 100.97 Cerner CERN 67.52 CharterComms CHTR 334.17 CheckPointSftw CHKP 117.71 ChinaLodging HTHT 133.89 CincinnatiFin CINF 70.17 Cintas CTAS 149.04 CiscoSystems CSCO 34.15 CitrixSystems CTXS 82.61 Cognex CGNX 123.15 CognizantTech CTSH 75.67 Coherent COHR 262.71 Comcast A CMCSA 36.03 CommerceBcshrs CBSH 58.16 CommScope COMM 32.14 Copart CPRT 36.29 CoStarGroup CSGP 295.75 Costco COST 161.08 Ctrip.com CTRP 47.89 DISH Network DISH 48.54 DentsplySirona XRAY 61.07 DiamondbackEner FANG 107.16 DiscoveryComm B DISCB 23.65 DiscoveryComm A DISCA 18.88 DiscoveryComm C DISCK 17.81 DollarTree DLTR 91.25 E*TRADE ETFC 43.59 EastWestBancorp EWBC 59.84 eBay EBAY 37.64 ElbitSystems ESLT 148.62 ElectronicArts EA 119.60 Equinix EQIX 463.50 Ericsson ERIC 6.25 Exelixis EXEL 24.79 Expedia EXPE 124.66 ExpeditorsIntl EXPD 58.38 ExpressScripts ESRX 61.29 F5Networks FFIV 121.27 Facebook FB 180.06 Fastenal FAST 46.97 FifthThirdBncp FITB 28.90 FirstSolar FSLR 54.82 Fiserv FISV 129.43 Flex FLEX 17.80 FlirSystems FLIR 46.82 Fortinet FTNT 39.41 Gaming&Leisure GLPI 36.54 Garmin GRMN 56.61 GileadSciences GILD 74.96 Goodyear GT 30.59 Grifols GRFS 23.65 HD Supply HDS 35.39 Hasbro HAS 92.59 HenrySchein HSIC 78.60 Hologic HOLX 37.85 JBHunt JBHT 106.39 HuntingtonBcshs HBAN 13.80 IAC/InterActive IAC 129.05 IdexxLab IDXX 166.17 IHSMarkit INFO 42.61 INC Research INCR 57.15 IPG Photonics IPGP 212.91 IRSA Prop IRCP 56.00 IcahnEnterprises IEP 55.19 Icon ICLR 118.86 Illumina ILMN 205.19 Incyte INCY 113.25 Intel INTC 45.49 InteractiveBrkrs IBKR 54.02 Intuit INTU 151.02 IntuitiveSurgical ISRG 375.36 IonisPharma IONS 57.11 JD.com JD 37.52 JackHenry JKHY 110.13 JazzPharma JAZZ 141.53 JetBlue JBLU 19.15 KLA Tencor KLAC 108.89 KraftHeinz KHC 77.33 LKQ LKQ 37.69 LamResearch LRCX 208.57 LamarAdvertising LAMR 70.44 LibertyBroadbandA LBRDA 86.21 LibertyBroadbandC LBRDK 87.29 LibertyGlobal A LBTYA 30.85 LibertyGlobal C LBTYK 29.89 LibertyLiLAC A LILA 21.72 LibertyLiLAC C LILAK 22.00 LibertyQVC A QVCA 22.72 LibertyVenturesA LVNTA 56.96 LibertyFormOne A FWONA 36.40 LibertyFormOne C FWONK 38.14 LibertyBraves A BATRA 23.48 LibertyBraves C BATRK 23.61 LibertySirius A LSXMA 41.71 LibertySirius C LSXMK 41.65 LincolnElectric LECO 91.67 LogitechIntl LOGI 35.83 LogMeIn LOGM 121.05 lululemon LULU 61.51 MKS Instrum MKSI 108.65 MarketAxess MKTX 174.00 Marriott MAR 119.48 Continued on Page B12 Tuesday, October 31, 2017 MMA 1-MO 2-MO 3-MO 6-MO 1-YR 2-YR 2.5YR 5YR 0.11 0.21 0.07 0.07 0.07 0.08 0.13 0.14 0.21 0.23 0.36 0.39 0.48 0.53 0.47 0.50 0.95 1.00 0.00 0.01 0.00 0.00 0.00 0.00 0.01 0.01 0.02 0.02 0.02 0.02 0.02 0.04 0.02 0.03 0.05 0.05 National average Savings Jumbos Weekly change Savings Jumbos ADVERTISEMENT Business Real Estate & Auctions To advertise: 800-366-3975 or WSJ.com/classiﬁeds Consumer Savings Rates AUCTIONS Explanation of ratings: Safe Sound SM, (855) 733-0700, evaluates the financial condition of federally insured institutions and assigns a rank of 1,2,3,4 or 5 based on data from the fourth quarter of 2015 from federal regulators. 5: most desirable performance; NR: institution is too new to rate, not an indication of financial strength or weakness. Information is believed to be reliable, but not guaranteed. High yield savings Bank/rank Phone number Minimum Yield (%) Money market and savings account DollarSavingsDirect /4 (866) 395-8693 CIT Bank /4 (855) 462-2652 Barclays /4 (888) 720-8756 $1 1.50 $100 1.35 $0 1.30 One-month CD EH National Bank /2 (888) 392-5265 M.Y. Safra Bank, FSB /4 (212) 652-7200 VirtualBank /4 (877) 998-2265 $0 0.81 $5,000 0.30 $10,000 0.15 $10,000 0.15 Six-month CD CD Bank /4 $10,000 (888) 201-8185 First Internet Bank of Indiana /4 $1,000 (888) 873-3424 M.Y. Safra Bank, FSB /4 $5,000 (212) 652-7200 1.40 1.37 $1,000 0.05 CD Bank /4 $10,000 (888) 201-8185 ableBanking,adivisionofNortheastBank/4 $1,000 (888) 426-2253 EverBank /3 $5,000 (855) 228-6755 !! "!#$ ! " # $ % ""& ' # ( ) * + , ,' '' '" -+ . /+ /+ '0 ' 1.37 % & # 1.75 ' () *+,,+* ---% ) ! 1 * 2 $ $ # 1.15 $5,000 1.10 $5,000 1.01 1.30 1.26 1.25 One-month CD Goldwater Bank /3 $5,000 (480) 281-8200 CD Bank /4 $10,000 (888) 201-8185 First Internet Bank of Indiana /4 $1,000 (888) 873-3424 0.30 0.22 1.85 1.85 Goldman Sachs Bank USA /5 $500 (855) 730-7283 Barclays /4 $0 (888) 720-8756 EverBank /3 $5,000 (855) 228-6755 2.40 2.35 CALIFORNIA ! !! ableBanking,adivisionofNortheastBank/4 (888) 426-2253 EverBank /3 (855) 228-6755 First Internet Bank of Indiana /4 (888) 873-3424 0.15 0.05 0.01 First Internet Bank of Indiana /4 (888) 873-3424 EverBank /3 (855) 228-6755 VirtualBank /4 (877) 998-2265 1.37 1.37 1.36 1.10 1.01 Synchrony Bank /5 (800) 903-8154 EverBank /3 (855) 228-6755 First Internet Bank of Indiana /4 (888) 873-3424 !" #$ % # $%&'(''# 1.70 1.68 ) *+, , ) ( ' * 1.66 + & - HAWAII NOTABLE COMMERCIAL PROPERTIES EVERY WEDNESDAY , 1.85 1.82 1.81 #$ % & ' ( % LIST YOUR PROPERTY TODAY Five-year CD 1.10 ! "#$$%# & ' '( )% ( *+ * , * MASSACHUSETTS Six-month CD First Internet Bank of Indiana /4 (888) 873-3424 M.Y. Safra Bank, FSB /4 (212) 652-7200 VirtualBank /4 (877) 998-2265 !"# $"%&! '(! & )% * +!, - .* %(!" * !, 2.35 Two-year CD Three-month CD Luana Savings Bank /4 (800) 666-2012 M.Y. Safra Bank, FSB /4 (212) 652-7200 EverBank /3 (855) 228-6755 ).// ( 0/ '( '1 - ( + *2 (/ 1 - 3* 3( ,. 3(( - 45 1 6 7/5 #89. - : * ; .$ - ,15 <( // - 1.85 One-year CD 0.81 Two-month CD VirtualBank /4 (877) 998-2265 Applied Bank /5 (800) 616-4605 Citizens Trust Bank /4 (404) 659-5959 ! " ((&& ! (! * 44 "!! !!/ %&!"/ 5 - 1.68 Five-year CD $10,000 Money market and savings account EH National Bank /2 (888) 392-5265 M.Y. Safra Bank, FSB /4 (212) 652-7200 USAA /5 (800) 583-8295 &%! %(!" - /+01 & 2#&&3 1.70 High yield jumbos - Minimum is $100,000 ableBanking,adivisionofNortheastBank/4 (877) 505-1933 M.Y. Safra Bank, FSB /4 (212) 652-7200 BBVA Compass /3 (800) COMPASS TEXAS Two-year CD Three-month CD CD Bank /4 (888) 201-8185 M.Y. Safra Bank, FSB /4 (212) 652-7200 EverBank /3 (855) 228-6755 Minimum Yield (%) One-year CD Two-month CD VirtualBank /4 (877) 998-2265 Applied Bank /5 (800) 616-4605 Bank/rank Phone number 2.35 2.35 !" (800) 366-3975 firstname.lastname@example.org For more information visit: wsj.com/classifieds 2.32 Notes: Accounts are federally insured up to $250,000 per person effective Oct. 3, 2008. Yields are based on method of compounding and rate stated for the lowest required opening deposit to earn interest. CD figures are for fixed rates only. MMA: Allows six (6) third-party transfers per month, three (3) of which may be checks. Rates are subject to change. Source: Bankrate.com, a publication of Bankrate, Inc., North Palm Beach, FL 33408 Internet: www.bankrate.com ! " 0.69 0.18 1.06 -1.17 0.26 -0.45 1.20 ... 1.06 10.19 1.22 5.23 -0.24 -0.18 0.11 0.22 -0.51 0.16 4.79 -0.47 0.53 0.14 0.25 1.25 0.85 0.88 0.15 -0.21 0.96 -0.35 -0.10 -0.12 -0.19 0.12 -0.30 0.64 1.71 2.02 3.77 0.07 -1.29 4.45 -0.19 -0.06 1.64 0.19 0.18 -0.11 -5.61 -0.02 -0.07 0.07 -0.09 0.38 0.12 -1.03 -0.43 1.20 0.14 -2.31 0.90 0.64 1.13 0.03 1.82 1.76 0.16 0.45 5.29 ... 0.06 0.24 1.38 -0.99 1.12 0.84 -0.43 -0.73 -1.20 0.10 -0.41 5.22 0.21 1.54 2.06 1.17 2.37 0.66 1.67 1.75 -0.08 -0.22 0.51 0.51 0.40 1.56 -0.51 -0.54 -0.43 -0.36 -0.39 -0.38 1.12 0.85 0.50 -0.21 3.10 0.95 0.96 © 2017 Dow Jones & Company, Inc. All Rights Reserved. B12 | Wednesday, November 1, 2017 NY THE WALL STREET JOURNAL. * * NEW HIGHS AND LOWS ADVERTISEMENT Legal Notices The following explanations apply to the New York Stock Exchange, NYSE Arca, NYSE MKT and Nasdaq Stock Market stocks that hit a new 52-week intraday high or low in the latest session. % CHG-Daily percentage change from the previous trading session. 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LL$$JL L ' 4 ) * - ) ) * - *)' .)'/ 8+ )'/' 8 ) * - G 8) B ')'24' +* ,6 ) * - *)' .)'/ ' )'/)) '( 8 8) '4* B + ) +4 ) : 8) B ')'24' +* G *''/ )) ' < $'/ =( ) $+' < H <,66 , ''M) * +) + -' )2) ' -' : *'/ 8 ' ## , ! 6 < @ Tuesday, October 31, 2017 Stock 52-Wk % Sym Hi/Lo Chg Stock NYSE highs - 172 ABB ABB AberdeenJapanEqu JEQ AdvanSix ASIX AerCap AER AlbanyIntl AIN Alibaba BABA AlleghenyTechs ATI AllisonTransm ALSN Ameren AEE Aramark ARMK AristaNetworks ANET AsiaTigersFund GRR Avangrid AGR AveryDennison AVY BP Midstream BPMP BP BP BancCA PfdE BANCpE BeazerHomes BZH BlkRkCapEnIncoFd CII BlkRkSci&Tech BST BoiseCascade BCC Box BOX BroadridgeFinl BR CF Industries CF CNA Fin CNA CNH Indl CNHI CNOOC CEO CTS CTS CabotOil COG Canon CAJ CenturyComm CCS ChoiceHotels CHH ColonyNorthPfdJ CLNSpJ ComfortSystems FIX ConstBrands B STZ.B ConstBrands A STZ CorEnergyInfrPf CORRpA CurtissWright CW Dana DAN Danaher DHR DaqoNewEnergy DQ DominionEner D Domtar UFS DriveShackPfdC DSpC DukeEnergy DUK EMCOR EME EaglePointNts27 ECCY EtnVncEqtyInco EOI EmployersHldgs EIG EnPro NPO Entergy1stMtgBd EAI EuropeanEqFd EEA Exelon EXC FB Financial FBK Ferrari RACE Ferro FOE FidelityNatlFin FNF FirstAmerFin FAF FT EnhEquity FFA GTT Comm GTT Gallagher AJG Generac GNRC GlobalPayments GPN GoDaddy GDDY GraceWR GRA HFF HF Haemonetic HAE Harris HRS HawaiianElec HE HiltonGrandVac HGV HollyFrontier HFC HubSpot HUBS Huntsman HUN Ingevity NGVT InnovativeIndPfdA IIPRpA InstalledBldg IBP InterXion INXN iStarPfdI STARpI JELD-WEN JELD JapanSmlCap JOF KBR KBR KKR Pfd A KKRpA KKR Pfd B KKRpB Kadant KAI Kemper KMPR Kennametal KMT KenonHoldings KEN KeysightTechs KEYS KoreaFund KF 26.29 9.21 46.51 53.30 60.85 185.12 25.62 45.69 62.14 43.99 201.95 12.96 51.87 106.56 18.09 40.97 28.59 21.05 15.98 26.70 38.85 22.07 86.22 38.10 54.74 12.83 137.27 27.45 28.00 37.79 28.55 70.35 25.57 44.68 218.60 219.29 26.93 118.66 30.61 92.47 38.71 82.13 47.59 25.60 88.64 80.88 26.50 14.46 47.85 84.28 25.05 10.00 40.38 41.97 120.36 23.96 37.55 54.48 15.54 36.45 63.37 52.63 104.00 46.80 77.18 44.24 47.96 139.53 36.47 41.06 37.42 87.25 32.23 71.77 26.46 69.85 53.70 25.63 37.31 12.90 19.90 27.69 27.37 114.00 65.20 43.82 17.53 44.79 44.01 3.0 -0.1 4.4 0.2 6.9 1.8 2.8 0.4 0.3 0.5 1.9 0.2 1.8 0.8 2.0 2.7 0.8 4.1 0.2 0.6 0.4 2.0 0.3 1.6 1.1 5.0 1.8 3.8 1.9 0.7 2.5 -0.4 0.3 3.9 2.4 2.9 0.8 0.8 2.6 0.5 -0.7 -0.4 2.9 -0.2 0.2 1.5 1.0 -0.6 1.5 7.7 0.5 0.4 -0.1 ... 2.1 1.0 0.7 2.4 0.4 3.1 0.9 0.3 2.0 0.8 1.4 2.1 1.0 2.7 0.8 1.1 0.1 1.3 2.1 1.9 1.3 3.7 0.9 0.9 1.1 0.8 5.5 1.1 2.1 13.1 0.2 2.5 -0.3 0.9 1.9 52-Wk % Sym Hi/Lo Chg Stock 42.34 KornFerry KFY 51.56 LambWeston LW 43.88 LiveNationEnt LYV 37.14 MDC Holdings MDC 14.43 MGIC Investment MTG 33.60 MI Homes MHO 60.16 MarathonPetrol MPC 152.00 Mastercard MA 51.85 Materion MTRN 47.20 MethodeElec MEI 684.78 MettlerToledo MTD 35.09 MicroFocus MFGP 10.29 MiXTelematics MIXT 3320.18 NVR NVR 117.90 NatlPrestoInds NPK 44.65 NewJerseyRscs NJR 18.44 NexaResources NEXA 10.16 NuvEMDebt2022 JEMD 78.26 ONE Gas OGS 37.46 Olin OLN 61.88 OnAssignment ASGN 21.85 Oppenheimer A OPY 65.54 OrmatTech ORA 94.16 Oshkosh OSK 82.90 OwensCorning OC 43.80 PNM Resources PNM PSBusParksPfdW PSBpW 25.55 82.59 PaycomSoftware PAYC 25.83 PA REIT PfdD PEIpD 101.15 Penumbra PEN 49.70 PublicServiceEnt PEG 30.37 PulteGroup PHM 157.64 QuakerChemical KWR 108.81 QuintilesIMS Q 22.65 RELX RENX 23.41 RELX RELX 210.72 Rockwell ROK 135.97 RockwellCollins COL 152.43 Rogers ROG 261.07 RoperTech ROP 63.28 RoyalDutchA RDS.A 65.60 RoyalDutchB RDS.B 28.10 RudolphTech RTEC 114.48 SAP SAP 25.79 SCE II Pfd SCEpG 42.70 SabineRoyalty SBR 102.45 Salesforce.com CRM 16.87 SantanderConUSA SC 13.60 SeabridgeGold SA 59.71 SimpsonMfg SSD 45.25 Sony SNE 79.35 Spire SR 81.33 SpiritAeroSys SPR 37.44 Square SQ 93.39 Steris STE 22.87 Stoneridge SRI 135.87 Synnex SNX 91.17 TE Connectivity TEL 81.42 TableauSoftware DATA 170.26 TeledyneTech TDY 43.64 Teradyne TER 48.86 Terex TEX 136.37 ThorIndustries THO 46.17 Toll Bros TOL 55.95 Total TOT 72.29 TotalSystem TSS 30.11 TrancntlRlty TCI 112.39 Trex TREX TwoHarborsPfdB TWOpB 26.66 73.16 TysonFoods TSN 79.14 ValeroEnergy VLO 4.38 Valhi VHI 42.09 VersumMaterials VSM 22.45 Vishay VSH 24.85 VishayPrecision VPG 124.11 WEX WEX 38.59 WNS WNS 201.37 WellCareHealth WCG 36.00 Weyerhaeuser WY 27.84 WilliamLyonHomes WLH 49.20 Winnebago WGO 26.73 WW Ent WWE 67.64 Xylem XYL 3.0 1.2 1.6 1.4 0.1 1.5 1.2 -0.1 0.9 0.8 1.1 1.9 1.4 1.3 2.7 0.8 0.7 ... 1.8 2.2 3.7 4.6 0.9 2.2 1.5 1.2 0.4 2.6 1.2 1.1 -0.7 1.5 1.7 0.9 0.8 0.8 7.4 -0.1 2.7 0.4 1.4 1.5 1.8 0.4 0.4 0.8 1.6 -0.3 2.6 14.6 11.7 1.2 -0.4 4.0 1.3 5.1 0.6 1.6 2.0 0.6 0.5 1.0 1.1 1.2 0.4 1.5 1.5 25.6 0.4 2.0 0.6 6.4 2.0 3.0 0.6 1.5 0.9 9.1 0.8 10.9 2.4 4.8 2.9 NYSE lows - 55 AES AK Steel AmCampus AmericanRenal ArcherDaniels BlueApron AES AKS ACC ARA ADM APRN 10.49 4.58 41.06 12.08 39.95 4.75 0.1 -21.5 0.3 -1.9 -4.5 -4.8 52-Wk % Sym Hi/Lo Chg 12.85 1.9 BlueCapReins BCRH 17.23 -2.9 BrixmorProp BRX 7.80 -3.7 Build-A-Bear BBW 8.81 -1.5 CapsteadMtg CMO 60.69 0.3 CardinalHealth CAH 10.01 -3.8 Celestica CLS 264.90 1.2 Chipotle CMG 43.50 -2.8 CircorIntl CIR 12.13 -1.5 ColonyNorthStar CLNS 3.60 -2.7 ContainerStore TCS 7.55 -1.0 DDR DDR 11.84 -0.8 DeutscheMuniIncmTr KTF 24.40 -3.4 Dick's DKS 7.85 0.8 EarthstoneEner ESTE 5.15 1.9 EastmanKodak KODK 9.80 0.4 EtnVncFR2022 EFL 1.22 -8.1 EldoradoGold EGO 15.26 -0.5 EllingtonFin EFC 2.06 -4.1 EndeavourSilver EXK 119.37 -0.4 FederalRealty FRT 29.70 -1.6 FootLocker FL 43.40 -8.8 FreshDelMonte FDP 18.86 -2.5 GGP GGP 20.05 -1.2 GeneralElec GE KinderMorganPfdA KMIpA 37.25 -0.2 1.61 -3.8 LightInTheBox LITB 17.35 -10.3 MSG Networks MSGN 18.51 -0.4 Macy's M 1.90 0.5 McEwenMining MUX 31.38 -0.6 NCR NCR 12.40 -20.2 Nautilus NLS 9.65 5.1 Netshoes NETS 39.36 -0.9 Nordstrom JWN 14.99 -0.2 NuvMN QualMuni NMS 27.87 -6.8 OmegaHealthcare OHI 67.17 -0.5 Omnicom OMC 24.24 0.3 Owens&Minor OMI 10.41 -0.9 PIMCOCAMuniIII PZC 21.90 12.2 Qudian QD 17.90 -2.2 SafetyIncome SAFE 42.75 -6.0 Scana SCG 5.80 -1.6 Smart&FinalStores SFS 22.41 -1.9 Tanger SKT 46.73 -1.3 TaubmanCtrs TCO 12.29 -0.7 TriangleCap TCAP 11.40 -21.8 UnderArmour C UA 12.48 -23.7 UnderArmour A UAA 12.67 -1.0 WideOpenWest WOW 27.61 -5.6 WorldFuelSvcs INT NYSE Arca highs - 163 ARKIndlInnovation ARKQ ARKInnovationETF ARKK ARKWebx.0ETF ARKW AdvShKIMKorea KOR AdvShNewTech FNG AlphaCloneAltAlpha ALFA BluStrTABIGIIsrael ITEQ ColumbiaIndiaCnsmr INCO ColumbiaIndiaSC SCIN ColumbiaSustIntl ESGN CSAxela3xLgBrent UBRT CS FI LC Grwth FLGE DirexESTOXX50Bl3x EUXL DirexHmbldrBull3 NAIL DirexJapanBl3 JPNL DirexIndiaBull3 INDL DirexSemiBl3 SOXL DirexKRBull3 KORU DirexTechBull3 TECL ETRACSMnly2xLevISE HOML FidelityMSCIIT FTEC FidelityMomFactor FDMO FT DJ Internet FDN FT GlbEngg FLM FT TechAlphaDEX FXL GSActiveBetaJapan GSJY GSHedgeIndVIP GVIP GraniteS&P Comm COMG GuggBull2021HY BSJL GuggS&P500EWTech RYT GuggS&P500PureGr RPG GuggS&P400PrGrwth RFG GuggGlbTimber CUT GuggS&PMC400EW EWMC GuggSolar TAN IQ50%HdgFTSEIntl HFXI IQMergerArbitrage MNA iPathBloomNickelTR JJN iPathAIGCarbon GRN iPath MSCI India INP 33.52 1.7 35.64 1.3 43.29 1.1 31.60 2.2 22.78 0.7 42.35 0.5 32.54 0.8 45.66 0.9 21.74 1.2 30.79 0.2 132.76 1.0 212.14 0.6 30.66 1.9 72.09 3.5 72.23 1.7 95.22 1.4 149.34 2.2 60.43 5.8 108.24 1.2 50.52 2.7 49.68 0.5 30.67 0.5 107.70 0.4 58.08 0.3 51.34 1.0 32.80 0.2 52.58 0.8 26.27 0.7 25.32 ... 142.61 0.6 103.53 0.4 150.28 0.9 31.29 0.6 62.28 0.8 24.34 -0.6 21.53 ... 31.09 0.2 15.22 7.3 9.74 2.0 85.20 0.6 ?$ $ $ A $* , .9 4**4) :+( ';+')' 8 ' - 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All Rights Reserved. iPathPBLivestock LSTK iShAggrAllocation AOA iShGrwthAllocation AOR iShMSCIIntlDev IDEV iShCoreMSCIPacific IPAC iShModAllocation AOM iShCurHdgMSCIACWI HACW iShCurHdgMSCIUS HAWX iShCurrHdgMSCICda HEWC iShCurHdgMSCIEAFE HSCZ iShCurHdMSCIEurozn HEZU iShCurrHdMSCIJapan HEWJ iShU.S.Technology IYW iShEdgeMSCIIntlMom IMTM iShEdgeMSCIIntVal IVLU iShEdgeMSCIMinJapn JPMV iShEdgeMSCIMultif ACWF iShEdgeMSCIMultInt INTF iShGlobal100 IOO iShJPX-Nikkei400 JPXN iShACWILowCarbon CRBN iShMSCI EAFE EFA iShMSCIFranceETF EWQ iShMSCIGermanyETF EWG iShMSCIGlblAgriPrd VEGI iShMSCIJapanETF EWJ iShMSCIJapanSC SCJ iShMSCISouthKorea EWY iShMSCITaiwanCap EWT iShMSCIWorldETF URTH iShMornMCGrowth JKH iShRussell1000Gwth IWF iShRussellTop200Gr IWY iShS&PMC400Growth IJK iShGlobalTechETF IXN iShGlobalConsDiscr RXI iShNorthAmerTech IGM iShTreaFRBd TFLO HancockDevIntl JHMD JPM DivRetGlEq JPGE JPM DivRetIntl JPIH JPM DivRetIntlEq JPIN KnowldgLdrDevWrld KLDW MeidellTactical MATH NationRiskBaseIntl RBIN OShFTSEAsiaPacQlty OAPH OppGlbESGRevenue ESGF 52-Wk % Sym Hi/Lo Chg Stock 47.38 1.2 PIMCO DynMultIn MFDX 54.44 0.2 PwrShCleantch PZD 45.32 0.1 PwrShDynBldg&Con PKB 57.46 0.6 PwrShDynMkt PWC 58.63 -0.1 PwrShDynSemicon PSI 38.23 0.1 PwrShDynSoftware PSJ 28.80 1.1 PwrShEuropeCurr FXEU 26.88 0.4 PwrShDynLC Grwth PWB 26.49 0.3 PwrShDevMkt xUS PXF 30.73 0.7 PwrShIndia PIN 30.95 0.5 PwrShJapanCurr FXJP 32.82 0.9 PwrShRussMCGrw PXMG 161.91 0.5 PwrShRussTop200G PXLG 30.80 0.3 PwrShS&P500Mom SPMO 25.95 0.3 PwrShWldrClean PBW 66.75 0.2 ProShS&P500xEner SPXE 30.02 0.3 ProShrUltraJapan EZJ 28.64 0.1 ProShrUltraQQQ QLD 91.24 0.3 ProShrUlSemi USD 63.67 0.6 ProShrUlTech ROM 114.73 0.4 RenaissanceIPOETF IPO 69.67 0.4 SPDRBloomBarCvSecs CWB 31.43 0.3 SPDRMFSSysGrowth SYG 33.09 0.5 SPDRMSCIACWIIMI ACIM 28.90 0.5 SPDRMSCIDEStrat QDEU 58.67 0.4 SPDR NYSE Tech XNTK 76.98 0.6 SPDRPtfWorldxUS SPDW 74.82 2.2 SPDR S&P500MidGr MDYG 38.12 0.5 SPDRS&PSft&Svs XSW 85.96 0.3 SPDR US LC Low Vol LGLV 195.23 0.6 SchwabFundIntLrgCo FNDF 130.21 0.3 SchwabFundIntlSmCo FNDC 70.93 0.2 SchwabIntEquity SCHF 209.60 0.6 SchwabUS LC Grw SCHG 153.18 0.6 SPDR EurSTOXX FEZ 104.33 0.1 SPDR IntlSC GWX 167.26 0.3 SPDR S&P Semi XSD 50.26 ... TechSelectSector XLK 30.06 0.3 UBS FIEnhLCGrw FBGX 61.17 0.3 USAACoreInterBd UITB 30.18 -0.1 USAACoreST USTB 59.41 0.5 USAA IntlVal UIVM 32.72 0.4 USBrentOilFd BNO 32.54 0.1 USDieselHeatingOil UHN 25.55 0.4 US3xOilFd USOU 32.33 2.6 VanEckAgribus MOO 30.63 0.3 VanEckGlbAltEn GEX The Mart To advertise: 800-366-3975 or WSJ.com/classiﬁeds FRANCHISE 52-Wk % Sym Hi/Lo Chg 62.85 26.20 0.3 VanEckIndiaSC SCIF 101.94 43.15 0.8 VanEckSemiconduc SMH 163.61 VGT 33.29 0.8 VangdInfoTech 156.53 93.97 0.8 VangdSC Grwth VBK 44.22 54.26 1.3 VangdFTSEDevMk VEA 71.18 65.86 0.8 VangdFTSE Pac VPL 136.71 VUG 24.26 0.9 VangdGrowth 108.03 VangdMegaGrwth MGK 40.42 0.5 129.97 44.87 0.5 VangdS&P400Grwth IVOG 143.82 VB 25.65 0.6 VangdSC 72.29 30.94 1.6 VangdTotlWrld VT 25.20 WBITacticalSMGD WBIA 40.29 0.7 35.24 44.26 0.5 WilshireMicroCap WMCR 31.29 WisdTrEuropeHdgSM EUSC 33.30 0.2 27.02 24.79 0.5 WisdTrIndiaEarn EPI 31.63 WisdTrIntlHdgQual IHDG 53.94 0.2 67.65 124.06 0.8 WisdTrIntlMC Div DIM 28.36 WisdTrJpnCapGds DXJC 70.28 0.7 28.83 124.98 2.5 WisdTrJpnHdgQuDiv JHDG 58.10 WisdTrJapanHdg DXJ 87.44 1.1 77.74 28.05 0.9 WisdTrJapanSC DFJ 28.74 XtrkrsJpnJPXNik400 JPN 51.80 0.7 28.04 77.51 0.6 XtrkrsMSCIAWxUS DBAW 32.05 XtrkrsMSCIEAFE DBEF 77.06 0.2 28.98 64.96 1.1 XtrkrsMSCIEurope DBEU 31.33 XtrkrsMSCIEurozone DBEZ 83.92 0.6 29.07 31.25 0.3 XtrkrsMSCIGermany DBGR 43.17 XtrkrsMSCIJapan DBJP 152.76 0.6 31.80 XtrkrsMSCISKorea DBKO 68.84 1.3 91.20 -0.3 30.35 0.2 35.50 0.5 PathS&P500VIXMT VXZ 19.04 34.12 0.4 CSAxela3xInvBrent DBRT 70.87 68.16 0.2 DirexDevMktBear3 DPK 13.04 41.74 0.5 DirexMexicoBl3 MEXX 21.78 35.64 0.6 DirexSemiBear3 SOXS 16.09 71.27 0.9 DirexTechBear3 TECS 7.32 63.08 0.4 FrankShtDurUSGovt FTSD 96.11 211.39 0.6 GlbXMSCIPakistan PAK 13.44 50.17 ... iPathBloomNatGasTR GAZ 0.24 50.19 -0.1 ProShShortQQQ PSQ 36.41 50.50 0.3 ProshUltBlmNatGas BOIL 7.21 16.44 0.5 ProShUlt3xShCrude OILD 14.85 23.76 17.77 0.3 ProShrUS MSCI EAFE EFU 28.00 33.50 1.8 ProShrUS MSCI Jpn EWV 14.04 60.33 0.4 ProShUltShtQQQ QID 63.26 0.8 Continued on Page 0.9 1.0 0.4 0.8 0.5 0.5 0.3 0.2 0.7 0.7 0.3 1.0 5.9 0.3 0.6 0.6 0.2 0.7 0.9 0.7 0.6 0.6 0.4 0.5 0.4 0.5 0.4 0.9 1.5 NYSE Arca lows - 23 -0.8 -2.1 -1.8 -1.5 -2.5 -1.2 -0.1 -2.6 -9.9 -0.3 -5.1 -1.4 -0.9 -1.1 -0.6 B15 Biggest 1,000 Stocks | WSJ.com/stocks Continued From Page B11 Stock Stock Net Sym Close Chg s PayPal MarvellTech MRVL 18.47 s MatchGroup MTCH 26.74 MaximIntProducts MXIM 52.54 s MelcoResorts MLCO 25.28 MercadoLibre MELI 240.31 s MicrochipTech MCHP 94.80 s MicronTech MU 44.31 Microsemi MSCC 53.37 Microsoft MSFT 83.18 Middleby MIDD 115.90 Momo MOMO 30.47 Mondelez MDLZ 41.43 s MonsterBeverage MNST 57.93 Mylan MYL 35.71 NXP Semi NXPI 117.05 Nasdaq NDAQ 72.65 NatlInstruments NATI 45.00 NetApp NTAP 44.42 Netease NTES 281.92 Netflix NFLX 196.43 NewsCorp A NWSA 13.66 NewsCorp B NWS 13.90 Nordson NDSN 126.69 NorthernTrust NTRS 93.52 NorwegianCruise NCLH 55.75 s NVIDIA NVDA 206.81 OReillyAuto ORLY 210.95 OldDomFreight ODFL 121.13 s ON Semi ON 21.32 OpenText OTEX 34.98 s PTC PTC 66.45 Paccar PCAR 71.73 PacWestBancorp PACW 48.32 Paychex PAYX 63.79 0.24 0.53 0.18 1.64 5.81 -0.41 2.66 0.73 -0.71 -0.16 1.01 2.13 1.10 -2.53 0.32 0.25 -0.05 0.90 5.41 -1.94 -0.15 -0.25 2.17 -1.13 0.95 2.97 -2.84 0.52 0.36 0.04 0.29 1.28 0.05 -0.18 Net Sym Close Chg PYPL 72.56 People'sUtdFin PBCT 18.66 s PilgrimPride PPC 31.78 Priceline PCLN 1911.96 Qiagen QGEN 33.86 Qorvo QRVO 75.81 Qualcomm QCOM 51.01 RandgoldRscs GOLD 98.27 RegenPharm REGN 402.62 RossStores ROST 63.49 Ryanair RYAAY 112.11 s SBA Comm SBAC 157.18 SEI Investments SEIC 64.51 Sina SINA 107.65 SS&C Tech SSNC 40.20 SVB Fin SIVB 219.28 ScrippsNetworks SNI 83.28 Seagate STX 36.97 SeattleGenetics SGEN 61.31 Shire SHPG 147.63 SignatureBank SBNY 130.01 SiriusXM SIRI 5.44 s Skyworks SWKS 113.86 Splunk SPLK 67.30 Starbucks SBUX 54.84 SteelDynamics STLD 37.21 Stericycle SRCL 70.85 Symantec SYMC 32.50 Synopsys SNPS 86.52 TD Ameritrade AMTD 49.99 TESARO TSRO 115.77 T-MobileUS TMUS 59.77 TRowePrice TROW 92.90 s TakeTwoSoftware TTWO 110.65 Tesla TSLA 331.53 1.41 0.20 0.68 32.23 0.08 -0.44 -3.65 -0.56 -3.90 0.07 7.07 7.01 0.40 2.28 0.13 -1.66 -0.15 0.29 -1.38 1.87 -0.50 -0.07 1.86 0.96 -0.33 -0.53 ... 0.09 0.26 0.05 1.03 0.19 0.48 0.94 11.45 Stock s t s s s Net Sym Close Chg TexasInstruments TXN 96.69 TractorSupply TSCO 60.26 Trimble TRMB 40.88 21stCenturyFoxA FOXA 26.15 21stCenturyFoxB FOX 25.45 UltaBeauty ULTA 201.79 UltimateSoftware ULTI 202.59 UniversalDisplay OLED 146.50 VEON VEON 3.91 VeriSign VRSN 107.52 VeriskAnalytics VRSK 85.05 VertxPharm VRTX 146.23 Viacom A VIA 30.05 Viacom B VIAB 24.03 Vodafone VOD 28.98 WPP WPPGY 88.29 WalgreensBoots WBA 66.27 Weibo WB 92.65 WesternDigital WDC 89.27 WillisTwrsWatson WLTW 161.08 Workday WDAY 110.99 WynnResorts WYNN 147.49 Xilinx XLNX 73.69 Yandex YNDX 33.83 ZebraTech ZBRA 115.99 Zillow A ZG 41.31 Zillow C Z 41.28 ZionsBancorp ZION 46.46 0.63 -0.23 0.12 -0.24 -0.30 0.10 6.14 7.90 0.06 -0.06 0.35 -3.30 -0.25 -0.20 0.20 2.85 0.01 2.78 3.48 0.07 2.57 6.28 0.64 0.73 5.52 0.54 0.40 -0.34 NYSE AMER CheniereEnergy LNG CheniereEnerPtrs CQP CheniereEnHldgs CQH ImperialOil IMO 46.74 0.34 27.99 -0.12 25.04 0.01 32.38 0.15 Mutual Funds | WSJ.com/fundresearch Data provided by Top 250 mutual-funds listings for Nasdaq-published share classes with net assets of at least $500 million each. 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. 3-YR%RET is trailing three-year return annualized. ADVERTISEMENT PUBLIC NOTICES 52-Wk % Sym Hi/Lo Chg Stock Explanatory Notes PUBLIC NOTICES !"# # $% " ! &" ' ( !# " " "" " # " #"" '( )) !" * + ,-#./ - " ( !#0 " " ' 1 $% " " # " ! * ' &" 2 " # &" 2 ' !# ! " 3(" !# # 4!567 4!56784 " # - !# #" 0 ( " 89 : 6 " #" ;7 ;"# :4 )# 6 ) !# <+;/ !"# # :4 * $ %# ! 0 ' "# # ' '''" !# ' 9=="( ("#= # "= # " # # 4!567 4!56784 Stock ANNOUNCEMENTS TRAVEL Save Up To 60% ! "# $ First & Business INTERNATIONAL Major Airlines, Corporate Travel Never Fly Coach Again! www.cooktravel.net (800) 435-8776 BUSINESS OPPORTUNITIES Attention High-Tax Payers: Cut Your Taxes Now by 30-50% -- this year. 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NA-Not available due to incomplete price, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund not tracked. NS-Fund didn’t exist at start of period. Fund Tuesday, October 31, 2017 Net YTD Net YTD NAV Chg % Ret Fund NAV Chg % Ret Fund American Century Inv 44.59 +0.14 Ultra American Funds Cl A 31.76 +0.05 AmcpA p 40.97 +0.01 AMutlA p 27.44 ... BalA p 12.95 -0.01 BondA p 62.81 +0.03 CapIBA p 52.26 +0.21 CapWGrA 57.15 +0.31 EupacA p 63.59 +0.16 FdInvA p 51.43 +0.17 GwthA p 10.48 ... HI TrA p 41.09 +0.04 ICAA p 23.45 +0.04 IncoA p 45.04 +0.10 N PerA p 47.35 +0.36 NEcoA p 66.29 +0.28 NwWrldA 56.51 +0.31 SmCpA p 12.99 -0.01 TxExA p 45.36 +0.03 WshA p Baird Funds 10.89 ... AggBdInst 11.25 ... CorBdInst BlackRock Funds A 20.26 ... GlblAlloc p BlackRock Funds Inst 23.00 ... EqtyDivd 20.39 ... GlblAlloc 7.85 ... HiYldBd StratIncOpptyIns 9.97 ... Bridge Builder Trust 10.19 -0.01 CoreBond Dimensional Fds 11.03 -0.01 5GlbFxdInc 30.32 +0.06 EmgMktVa EmMktCorEq 22.38 +0.11 IntlCoreEq 14.23 +0.04 19.94 +0.04 IntlVal 21.52 +0.07 IntSmCo IntSmVa 23.51 +0.08 22.01 +0.07 US CoreEq1 US CoreEq2 20.90 +0.07 US Small 36.48 +0.31 US SmCpVal 39.07 +0.31 25.16 +0.20 US TgdVal USLgVa 38.84 +0.06 Dodge & Cox 109.12 +0.05 Balanced GblStock 13.95 +0.02 13.83 -0.01 Income 46.53 -0.04 Intl Stk 201.77 +0.21 Stock DoubleLine Funds 10.67 -0.04 TotRetBdI Edgewood Growth Instituti EdgewoodGrInst 29.35 +0.08 Federated Instl 6.37 +0.01 StraValDivIS Fidelity 90.13 +0.09 500IdxInst 500IdxInstPrem 90.13 +0.09 500IdxPrem 90.13 +0.09 ExtMktIdxPrem r 62.72 +0.42 IntlIdxPrem r 43.28 +0.12 SAIUSLgCpIndxFd 13.82 +0.02 74.80 +0.15 TMktIdxF r TMktIdxPrem 74.79 +0.15 USBdIdxInstPrem 11.60 -0.01 Fidelity Advisor I 33.41 +0.06 NwInsghtI Fidelity Freedom 16.70 +0.02 FF2020 14.45 +0.02 FF2025 FF2030 18.10 +0.03 Freedom2020 K 16.70 +0.02 Freedom2025 K 14.45 +0.02 Freedom2030 K 18.11 +0.03 Freedom2035 K 15.19 +0.03 Freedom2040 K 10.67 +0.02 Fidelity Invest Balanc 23.65 +0.04 87.42 +0.53 BluCh 126.93 +0.28 Contra ContraK 126.93 +0.28 10.34 +0.03 CpInc r 41.39 +0.13 DivIntl GroCo 182.23 +0.43 182.18 +0.43 GrowCoK 7.93 ... InvGB InvGrBd 11.28 -0.01 52.74 +0.12 LowP r LowPriStkK r 52.70 +0.12 MagIn 105.60 +0.21 108.22 +0.51 OTC 23.15 +0.03 Puritn SrsEmrgMkt 21.35 +0.10 SrsGroCoRetail 17.90 +0.04 16.22 +0.03 SrsIntlGrw 10.86 +0.02 SrsIntlVal TotalBond 10.67 -0.01 Fidelity Selects 219.04 -1.21 Biotech r First Eagle Funds 60.47 +0.06 27.8 GlbA FPA Funds 35.24 ... 18.4 FPACres 12.9 FrankTemp/Frank Adv NA ... 12.3 IncomeAdv 3.3 FrankTemp/Franklin A 7.45 ... 11.7 CA TF A p 11.98 ... 21.1 Fed TF A p NA ... 29.3 IncomeA p 60.43 -0.11 19.0 RisDv A p 22.3 FrankTemp/Franklin C NA ... 6.8 Income C t 14.7 FrankTemp/Temp A 12.16 +0.05 10.6 GlBond A p 26.86 +0.02 27.5 Growth A p 31.7 FrankTemp/Temp Adv 28.8 GlBondAdv p 12.12 +0.06 22.9 Harbor Funds 75.32 +0.28 4.6 CapApInst 69.90 +0.46 15.0 IntlInst r Harding Loevner NA ... 3.9 IntlEq 4.3 Invesco Funds A 11.24 ... EqIncA 11.4 John Hancock Class 1 15.95 +0.03 LSBalncd 17.12 +0.05 12.7 LSGwth 11.7 John Hancock Instl 23.96 +0.09 7.7 DispValMCI 4.3 JPMorgan Funds MdCpVal L 39.88 +0.12 3.7 JPMorgan R Class CoreBond 11.63 -0.01 2.3 Lazard Instl 19.58 +0.19 28.4 EmgMktEq 30.8 Loomis Sayles Fds 14.15 +0.01 24.2 LSBondI 21.7 Lord Abbett A 25.8 ShtDurIncmA p 4.27 -0.01 24.3 Lord Abbett F 4.27 ... 15.6 ShtDurIncm 13.6 Metropolitan West NA ... 8.5 TotRetBd NA ... 5.0 TotRetBdI NA ... 5.6 TRBdPlan 12.3 MFS Funds Class I 40.69 -0.04 ValueI 9.0 MFS Funds Instl 25.43 +0.08 17.1 IntlEq 4.0 Mutual Series 32.56 +0.03 22.1 GlbDiscA 12.6 Oakmark Funds Invest 33.88 +0.02 EqtyInc r 84.71 +0.13 3.6 Oakmark OakmrkInt 29.05 +0.04 32.1 Old Westbury Fds 14.85 +0.03 LrgCpStr 10.9 Oppenheimer Y NA ... DevMktY 43.33 +0.14 16.9 IntGrowY 16.9 Parnassus Fds 43.87 +0.23 16.9 ParnEqFd 14.3 PIMCO Fds Instl NA ... 22.6 AllAsset 10.28 -0.01 16.9 TotRt 16.4 PIMCO Funds A NA ... 16.4 IncomeFd 3.1 PIMCO Funds D NA ... IncomeFd 25.1 PIMCO Funds Instl NA ... IncomeFd 13.2 PIMCO Funds P NA ... 14.1 IncomeP 16.6 Price Funds 96.98 +0.08 NS BlChip 29.65 ... NS CapApp 34.67 -0.06 NS EqInc 69.21 +0.07 NS EqIndex 70.03 +0.09 NS Growth HelSci 73.83 -0.18 39.40 +0.02 14.0 InstlCapG IntlStk 19.27 +0.10 32.5 15.30 +0.02 29.8 IntlValEq 92.19 +0.45 29.9 MCapGro 30.97 +0.05 11.1 MCapVal 55.59 +0.32 24.3 N Horiz 9.50 ... 33.2 N Inc 11.34 +0.04 33.3 OverS SF r 23.20 +0.04 3.5 R2020 17.89 +0.03 3.9 R2025 26.35 +0.04 15.1 R2030 19.26 +0.03 15.2 R2035 27.68 +0.05 22.4 R2040 38.61 -0.03 35.8 Value 16.0 PRIMECAP Odyssey Fds 35.64 +0.28 36.0 Growth r 34.0 Principal Investors NA ... 26.7 DivIntlInst 18.6 Prudential Cl Z & I NA ... 3.8 TRBdZ Schwab Funds 40.23 +0.04 25.8 S&P Sel Net YTD NAV Chg % Ret TIAA/CREF Funds 11.4 EqIdxInst 19.31 +0.04 IntlEqIdxInst 20.32 +0.07 9.3 Tweedy Browne Fds 28.42 +0.12 GblValue NA VANGUARD ADMIRAL 237.99 +0.23 500Adml 4.9 BalAdml 34.03 +0.04 3.0 CAITAdml 11.81 ... NA CapOpAdml r 154.68 +0.60 15.8 EMAdmr 36.99 +0.10 76.03 +0.02 EqIncAdml NA ExtndAdml 82.39 +0.54 ... GNMAAdml 10.51 3.7 GrwthAdml 70.29 +0.20 14.0 HlthCareAdml r 88.68 -0.01 ... HYCorAdml r 5.97 3.9 InfProAd 25.74 ... 94.73 +0.63 IntlGrAdml 33.0 ITBondAdml 11.43 ... 19.7 ITIGradeAdml 9.82 ... ... LTGradeAdml 10.61 NA MidCpAdml 184.71 +0.72 11.37 -0.01 MuHYAdml 7.6 MuIntAdml 14.17 ... 11.65 ... MuLTAdml 13.0 MuLtdAdml 10.97 ... 16.5 MuShtAdml 15.79 ... PrmcpAdml r 134.93 +0.37 11.6 REITAdml r 116.56 +0.05 SmCapAdml 68.75 +0.46 9.6 STBondAdml 10.44 ... ... STIGradeAdml 10.69 3.5 TotBdAdml 10.77 ... TotIntBdIdxAdm 21.91 -0.01 23.3 TotIntlAdmIdx r 29.95 +0.10 TotStAdml 64.42 +0.13 6.7 TxMIn r 14.19 +0.06 39.65 -0.03 ValAdml 2.1 WdsrllAdml 68.88 -0.02 65.17 -0.02 WellsIAdml 2.5 WelltnAdml 73.69 +0.01 WndsrAdml 78.88 +0.12 NA VANGUARD FDS NA DivdGro 26.17 -0.02 NA HlthCare r 210.21 -0.02 INSTTRF2020 22.51 +0.03 13.5 INSTTRF2025 22.77 +0.03 INSTTRF2030 22.96 +0.04 25.5 INSTTRF2035 23.16 +0.05 INSTTRF2040 23.35 +0.06 8.3 INSTTRF2045 23.49 +0.06 39.26 +0.29 IntlVal 11.4 LifeGro 33.11 +0.07 16.9 LifeMod 26.90 +0.04 28.0 PrmcpCor 26.79 +0.09 SelValu r 33.15 +0.15 15.7 STAR 27.15 +0.07 STIGrade 10.69 ... NA TgtRe2015 15.91 +0.02 24.9 TgtRe2020 31.58 +0.04 18.51 +0.03 TgtRe2025 12.6 TgtRe2030 33.44 +0.06 20.54 +0.04 TgtRe2035 NA TgtRe2040 35.37 +0.08 4.8 TgtRe2045 22.21 +0.05 TgtRe2050 35.74 +0.09 NA TgtRetInc 13.57 +0.01 ... TotIntBdIxInv 10.96 NA WellsI 26.90 -0.01 42.67 +0.01 Welltn NA WndsrII 38.81 -0.01 VANGUARD INDEX FDS NA 500 237.96 +0.23 203.33 +1.34 ExtndIstPl 33.6 SmValAdml 55.37 +0.28 13.2 TotBd2 10.73 -0.01 11.7 TotIntl 17.91 +0.07 16.7 TotSt 64.39 +0.12 31.5 VANGUARD INSTL FDS 25.0 BalInst 34.03 +0.03 34.7 DevMktsIndInst 14.20 +0.05 26.0 DevMktsInxInst 22.20 +0.08 19.4 ExtndInst 82.39 +0.54 22.3 GrwthInst 70.30 +0.20 6.6 InPrSeIn 10.49 ... 28.4 InstIdx 234.80 +0.23 3.6 InstPlus 234.82 +0.23 25.0 InstTStPlus 57.78 +0.11 13.7 MidCpInst 40.80 +0.16 15.4 MidCpIstPl 201.24 +0.79 17.0 SmCapInst 68.75 +0.46 18.2 STIGradeInst 10.69 ... 19.3 TotBdInst 10.77 ... 14.7 TotBdInst2 10.73 -0.01 TotBdInstPl 10.77 ... 24.4 TotIntBdIdxInst 32.88 -0.01 TotIntlInstIdx r 119.77 +0.41 NA TotItlInstPlId r 119.79 +0.40 64.43 +0.13 TotStInst NA ValueInst 39.65 -0.02 Western Asset 16.9 CorePlusBdI NA ... 16.4 22.8 13.5 16.9 11.0 4.7 24.5 26.7 13.4 14.3 2.0 23.7 17.0 7.1 1.9 40.7 3.9 4.3 9.2 14.5 6.6 4.4 5.4 2.6 1.4 24.0 2.5 12.3 1.5 2.3 3.3 2.0 24.0 16.4 23.3 11.5 11.6 7.9 11.4 14.9 13.4 17.0 11.8 13.2 14.5 15.8 17.1 17.6 23.7 15.9 12.5 20.8 15.2 15.4 2.2 9.6 11.7 13.2 14.5 15.8 17.1 17.6 17.6 7.2 2.0 7.9 11.3 11.5 16.8 14.3 7.9 3.2 23.9 16.3 11.0 23.2 23.3 14.3 23.8 2.0 16.9 16.9 16.4 14.5 14.5 12.3 2.4 3.3 3.2 3.3 2.0 24.0 24.0 16.4 11.5 NA For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 1, 2017 | B13 MARKETS DIGEST EQUITIES Dow Jones Industrial Average S&P 500 Index Last Year ago 23377.24 s 28.50, or 0.12% High, low, open and close for each trading day of the past three months. Trailing P/E ratio 21.14 19.71 P/E estimate * 19.54 17.19 Dividend yield 2.20 2.61 All-time high 23441.76, 10/24/17 Nasdaq Composite Index Last 2575.26 s 2.43, or 0.09% High, low, open and close for each trading day of the past three months. Year ago Trailing P/E ratio 24.16 24.31 P/E estimate * 19.49 18.02 Dividend yield 1.92 2.16 All-time high: 2581.07, 10/27/17 Last Year ago 6727.67 s 28.71, or 0.43% High, low, open and close for each trading day of the past three months. Trailing P/E ratio * 26.00 24.09 P/E estimate * 21.55 19.35 Dividend yield 1.07 1.21 All-time high: 6727.67, 10/31/17 Current divisor 0.14523396877348 23500 2570 6700 23000 2540 6600 22500 2510 6500 22000 2480 6400 21500 2450 6300 Session high UP Close t DOWN Session open Open t Close Session low 65-day moving average 65-day moving average 65-day moving average 21000 6200 2420 Bars measure the point change from session's open 20500 July Aug. Sept. Oct. 6100 2390 July Aug. Sept. July Oct. Aug. Sept. Oct. Weekly P/E data based on as-reported earnings from Birinyi Associates Inc. Major U.S. Stock-Market Indexes High Latest Close Low Net chg % chg High 52-Week Low % chg % chg 3-yr. ann. YTD Dow Jones 23406.35 23334.39 23377.24 Industrial Average Transportation Avg Utility Average Total Stock Market Barron's 400 9819.06 9756.01 755.00 750.28 28.50 0.12 9758.47 -44.23 -0.45 753.20 0.75 0.10 26721.43 26643.61 26687.97 692.30 686.59 690.87 51.68 5.62 0.19 Nasdaq Stock Market Nasdaq Composite 6737.75 Nasdaq 100 6258.42 6705.79 6229.15 6727.67 6248.56 0.82 28.71 20.97 0.43 0.34 Standard & Poor's 500 Index 2578.29 2572.15 2575.26 2.43 MidCap 400 SmallCap 600 1837.79 914.73 1827.61 904.48 1835.10 912.04 9.67 8.56 0.53 Other Indexes Russell 2000 1506.78 1491.44 1502.53 11.64 12358.76 12322.45 12341.02 21.55 NYSE Composite Value Line NYSE Arca Biotech 543.18 539.55 4145.96 4082.80 542.26 18.3 8008.38 21.9 7.9 3.7 754.80 625.44 13.5 14.2 8.1 26743.96 21514.15 691.56 521.59 22.5 30.5 14.7 14.8 8.3 8.8 6727.67 6248.56 0.95 1839.12 918.72 1476.68 703.64 22.8 28.0 10.5 8.8 9.0 10.3 0.78 1512.09 1156.89 27.6 10.7 8.6 -0.32 12430.52 10289.35 iShares MSCI Emg Markets EEM 16,855.3 46.28 … 45.93 SPDR S&P 500 SPY 16,718.4 257.09 -0.06 -0.02 257.33 256.85 iShares MSCI Intl Dev IDEV 10,770.9 57.11 -0.35 -0.61 57.11 iSh Core MSCI Europe IEUR 7,562.2 49.90 0.11 0.22 49.90 49.79 iSh Core MSCI Pacific IPAC 4,428.9 58.29 -0.15 -0.25 58.56 58.29 VanEck Vectors Gold Miner GDX 2,563.6 22.55 0.07 0.31 22.56 22.45 Micron Technology MU 2,553.1 44.26 -0.05 -0.11 44.40 43.00 Verizon Communications VZ 2,279.5 47.87 … unch. 47.95 47.80 57.11 Percentage gainers… Black Box BBOX 5.1 3.45 0.35 11.13 3.45 3.10 Big 5 Sporting Goods BGFV 158.3 7.00 0.65 10.24 7.40 6.15 Westport Fuel Systems WPRT 46.4 3.80 0.34 9.83 3.90 3.60 Qualys Inc. QLYS 25.4 57.50 4.60 8.70 57.70 52.90 B&G Foods BGS 76.2 34.50 2.70 8.49 35.75 31.80 Envision Healthcare EVHC 950.0 30.50 -12.10 -28.40 44.00 29.32 3D Systems DDD 985.2 10.50 -1.88 -15.19 12.43 9.86 2834.14 37.7 33.4 6.9 560.52 463.78 12.4 10.8 0.2 102.23 73.36 36.2 10.5 12.0 96.72 73.03 -9.1 3.0 7.8 117.79 -12.6 -28.0 -19.0 Wabash National WNC 40.7 20.25 -2.25 -10.00 22.53 19.90 802.88 56.3 9.19 -45.2 40.7 25.8 -27.5 -10.1 Sturm Ruger RGR 11.3 45.25 -4.30 -8.68 49.56 41.01 26.9 5.10 -0.44 -7.94 5.45 5.10 81.96 80.89 PHLX§ Oil Service 81.20 132.84 130.58 132.38 1.06 0.81 192.66 1279.32 10.37 1265.18 9.90 1275.61 10.18 9.69 -0.32 0.77 1275.61 22.51 ...And losers Marinus Pharmaceuticals MRNS Sources: SIX Financial Information; WSJ Market Data Group International Stock Indexes Region/Country Index Close –2.46 0.61 0.42 2959.93 384.17 258.92 The Global Dow DJ Global Index DJ Global ex U.S. Percentage Gainers... Net chg DJ Americas 619.32 Sao Paulo Bovespa 74308.49 S&P/TSX Comp 16025.59 S&P/BMV IPC 48625.53 Santiago IPSA 4240.31 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 5909.00 Shanghai Composite 3393.34 Hang Seng 28245.54 S&P BSE Sensex 33213.13 Nikkei Stock Avg 22011.61 Straits Times 3374.08 Kospi 2523.43 Weighted 10793.80 Latest % chg YTD % chg –0.08 16.9 17.8 21.0 0.16 0.16 0.67 –491.84 –0.66 22.81 –229.74 –0.47 –15.62 –0.37 395.22 397.81 4096.38 5503.29 13229.57 1438.61 22793.69 553.38 1113.41 10523.50 597.16 9242.18 7493.08 EMEA Eurozone Belgium France Germany Israel Italy Netherlands Russia Spain Sweden Switzerland U.K. 0.11 0.14 14.6 23.4 4.8 6.5 31.6 0.33 1.31 0.25 1.01 0.43 17.70 0.18 9.66 Closed … –0.20 –2.88 0.18 40.80 0.71 3.92 –10.64 –0.95 0.74 77.50 0.56 3.31 0.73 66.68 0.07 5.27 9.4 13.6 13.6 13.2 15.2 –2.2 18.5 14.5 –3.4 12.5 11.7 12.4 4.9 –10.10 3.00 –90.65 –53.03 –0.06 –1.89 21.50 36.93 4.3 9.3 28.4 24.7 15.2 17.1 24.5 16.6 –0.17 0.09 –0.32 –0.16 –.0003 –0.06 0.86 0.34 Company Symbol Stemline Therapeutics Apptio Cl A Trex Co Harmonic MarineMax STML QuinStreet Sunesis Pharmaceuticals VolitionRX Mustang Bio Helios Matheson Analy QNST Avenue Therapeutics Independence Contract Sterling Construction Simpson Manufacturing TrueBlue ATXI 13.65 3.10 24.25 5.16 109.45 22.34 3.70 0.75 18.55 3.35 APTI TREX HLIT HZO SNSS VNRX MBIO HMNY ICD STRL SSD TBI 52-Week Low % chg High 29.38 27.03 25.65 25.42 22.04 14.60 5.50 24.50 10.77 112.39 50.81 6.18 2.80 23.65 13.80 Company Symbol 18.2 27.0 105.5 -26.0 12.8 Libbey Under Armour A Under Armour Cl C AK Steel Nautilus LBY Symbol General Electric AK Steel Advanced Micro Devices Micron Technology Bank of America GE iShares MSCI Emg Markets Intel Under Armour A SPDR S&P 500 Ford Motor EEM AKS AMD MU BAC INTC UAA SPY F Selected rates A consumer rate against its benchmark over the past year 30-year mortgage, Rate 2.61 1.82 2.08 8.22 2.20 196.7 -30.2 -32.9 ... 71.3 Applied DNA Sciences Oxford Immunotec Global Sanmina Calyxt Chicago Bridge Iron APDN 5.32 3.24 17.85 55.74 27.10 0.78 0.44 2.40 7.11 3.35 17.18 15.71 15.53 14.62 14.11 8.58 3.92 7.30 2.72 18.48 6.13 59.71 39.82 28.70 16.65 ... -19.0 178.0 30.0 55.7 Lannett Co HTG Molecular Diagnostics John B Sanfilippo Son Barnes Noble Education Lumber Liquidators LCI t 3.00 2.00 t 0.00 Accelin Loans LLC Bend, OR 3.75% 541-410-6086 CedarRapidsBankandTrustCompany 3.75% Cedar Rapids, IA 319-862-2728 Fortune Financial, Inc. Englewood, CO 3.75% 303-706-0920 Garden State Home Loans 3.75% Cherry Hill, NJ 609-216-7912 1 3 6 month(s) One year ago 1 2 3 5 710 years maturity Federal-funds rate target 1.00-1.25 1.00-1.25 Prime rate* 4.25 4.25 Libor, 3-month 1.37 1.38 Money market, annual yield 0.35 0.32 Five-year CD, annual yield 1.46 1.47 30-year mortgage, fixed† 3.93 3.94 15-year mortgage, fixed† 3.23 3.24 Jumbo mortgages, $424,100-plus† 4.29 4.31 Five-year adj mortgage (ARM)† 3.47 3.57 New-car loan, 48-month 3.02 3.02 HELOC, $30,000 5.17 5.19 3-yr chg 52-Week Range (%) Low 0 2 4 6 8 High (pct pts) 0.25 l l 3.50 0.88 l 0.26 l 1.19 l l 3.61 l 2.85 l 4.23 l 3.13 l 2.85 l 4.57 1.25 4.25 1.38 0.36 1.47 4.33 3.50 4.88 4.03 3.36 5.30 1.00 1.00 1.15 -0.10 -0.06 -0.12 0.03 -0.06 -0.30 -0.22 0.74 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 iShares MSCI Intl Dev Bison Capital Acquisition Guggenheim Frontier Mkts iSh Core Total USD Bd Mkt Fidelity MSCI Con Staples IDEV 46,042 45,507 45,307 42,706 40,323 -5.0 91.6 848.6 -33.4 13.2 46.28 0.94 45.49 2.52 12.52 -23.71 257.15 0.16 12.27 1.40 PowerShares Dyn Software KraneShs MSCI China Env Adv Accelerator Appl ADR Stemline Therapeutics iSh Core MSCI Pacific PSJ 20.05 4.58 6.22 16.45 16.28 46.82 33.94 45.80 33.23 33.45 12.48 257.89 208.38 13.27 10.47 NYSE Arca * Primary market NYSE, NYSE American NYSE Arca only. †(TRIN) A comparison of the number of advancing and declining issues with the volume of shares rising and falling. An Arms of less than 1 indicates buying demand; above 1 indicates selling pressure. 0 0.75 –10 0.00 –15 30 Country/currency 6.84 12.52 11.53 4.59 13.00 -2.32 -3.89 -3.21 -1.26 -3.30 -25.33 -23.71 -21.78 -21.54 -20.25 20.76 6.12 33.45 12.48 29.53 11.40 11.39 4.58 19.80 12.40 -56.8 -59.0 -54.8 -10.2 -23.8 2.13 13.22 32.73 20.48 13.94 -0.40 -2.46 -6.08 -3.46 -2.24 -15.81 -15.69 -15.66 -14.45 -13.84 3.45 0.90 19.51 12.68 42.95 26.95 31.89 9.26 36.56 9.55 -21.1 -3.2 16.5 ... -56.0 19.90 2.24 58.85 5.45 30.78 -3.15 -0.34 -8.55 -0.74 -3.99 -13.67 -13.18 -12.69 -11.95 -11.48 27.90 14.90 13.25 1.20 74.69 56.26 13.15 5.03 41.33 14.02 -12.7 0.9 -4.0 -40.0 102.8 BCAC FRN IUSB FSTA KGRN AAAP STML IPAC Volume % chg from Latest Session (000) 65-day avg Close % chg 52-Week High Low 1,325 576 617 1,944 966 7272 4818 2084 2072 1786 57.46 9.85 14.35 51.06 31.96 0.65 0.51 -1.24 0.04 0.76 57.46 9.90 15.09 51.57 34.49 50.71 9.73 11.40 49.81 30.10 124 132 6,564 3,057 669 1765 1544 1500 1493 1476 65.77 25.50 81.00 13.65 58.44 0.79 -0.27 0.62 29.38 -0.07 65.86 26.14 81.17 14.60 58.63 45.76 25.16 23.50 5.50 48.77 WSJ Dollar index US$vs, YTDchg Tues in US$ per US$ (%) Americas Argentina peso .0567 17.6340 Brazil real .3056 3.2727 Canada dollar .7759 1.2888 Chile peso .001571 636.50 Colombia peso .0003289 3040.14 Ecuador US dollar 1 1 Mexico peso .0522 19.1463 Peru new sol .3079 3.248 Uruguay peso .03427 29.1800 Venezuela b. fuerte .094418 10.5913 10% –5 52-Week Low % chg U.S.-dollar foreign-exchange rates in late New York trading Yen, euro vs. dollar; dollar vs. major U.S. trading partners 1.50 High Currencies Forex Race 5 Latest Session Close Net chg % chg * Common stocks priced at $5 a share or more with an average volume over 65 trading days of at least 5,000 shares =Has traded fewer than 65 days s Euro s Yen 11.1 0.5 –4.1 –5.0 1.3 unch –7.7 –3.1 –0.6 6.0 Asia-Pacific 2016 2017 Yield (%) Last Week ago 52-Week High Low Total Return (%) 52-wk 3-yr 2.132 2.151 2.237 1.482 –1.387 1.975 2.374 3.040 2.600 n.a. 2.860 n.a. 2.406 3.046 2.620 5.059 2.900 1.920 2.609 3.390 2.790 n.a. 3.120 n.a. 1.783 2.730 2.100 n.a. 2.270 n.a. 1.850 2.992 0.876 n.a. 0.441 n.a. 1.818 3.974 2.390 n.a. 2.073 n.a. n.a. n.a. 5.470 n.a. n.a. n.a. n.a. Sources: J.P. Morgan; Ryan ALM; S&P Dow Jones Indices; Barclays Capital; Merrill Lynch Australian dollar .7655 1.3063 China yuan .1507 6.6357 Hong Kong dollar .1282 7.8012 India rupee .01546 64.688 Indonesia rupiah .0000737 13563 Japan yen .008800 113.64 Kazakhstan tenge .002985 334.96 Macau pataca .1246 8.0240 Malaysia ringgit .2363 4.2316 New Zealand dollar .6846 1.4607 Pakistan rupee .00949 105.325 Philippines peso .0194 51.596 Singapore dollar .7338 1.3628 South Korea won .0008941 1118.42 Sri Lanka rupee .0065096 153.62 Taiwan dollar .03315 30.168 Track the Markets Compare the performance of selected global stock indexes, bond ETFs, currencies and commodities at WSJ.com/TrackTheMarkets –5.9 –4.5 0.6 –4.8 0.3 –2.9 0.4 1.4 –5.7 1.2 0.9 4.0 –5.8 –7.4 3.5 –7.0 US$vs, YTDchg Tues in US$ per US$ (%) Country/currency .03009 33.230 –7.2 .00004403 22710 –0.3 Thailand baht Vietnam dong Europe Czech Rep. koruna Denmark krone Euro area euro Hungary forint Iceland krona Norway krone Poland zloty Russia ruble Sweden krona Switzerland franc Turkey lira Ukraine hryvnia UK pound .04539 22.033 –14.2 .1565 6.3896 –9.6 1.1648 .8586 –9.7 .003740 267.39 –9.1 .009482 105.46 –6.6 .1224 8.1687 –5.5 .2748 3.6397 –13.1 .01714 58.344 –4.8 .1194 8.3774 –8.0 1.0023 .9977 –2.1 .2637 3.7920 7.6 .0372 26.8600 –0.8 1.3283 .7528 –7.1 Middle East/Africa Bahrain dinar Egypt pound Israel shekel Kuwait dinar Oman sul rial Qatar rial Saudi Arabia riyal South Africa rand 2.6518 .3771 –0.02 .0566 17.6545 –2.6 .2840 3.5210 –8.5 3.3052 .3026 –1.0 2.5980 .3849 –0.01 .2632 3.800 4.4 .2667 3.7502 –0.01 .0708 14.1289 3.2 Close Net Chg % Chg YTD%Chg WSJ Dollar Index 87.62 0.09 0.10 –5.72 Sources: Tullett Prebon, WSJ Market Data Group Commodities COMMODITIES Tuesday 52-Week Pricing trends on someClose raw materials, or commodities Net chg % Chg High Low DJ Commodity Get real-time U.S. stock quotes and track most-active stocks, new highs/lows and mutual funds. Plus, deeper money-flows data and email delivery of key stock-market data. Available free at WSJMarkets.com Nasdaq Total volume*2,020,170,652 209,025,806 Adv. volume*1,288,384,000 129,376,908 Decl. volume* 692,238,028 78,108,619 Issues traded 3,078 1,302 Advances 1,884 887 Declines 1,055 385 Unchanged 139 30 New highs 183 163 New lows 59 23 Closing tick 544 11 Closing Arms† 0.96 1.52 Block trades* 7,629 1,226 Ranked by change from 65-day average* 32.38 11.39 15.65 44.57 27.98 1458.107 EMBI Global, J.P. Morgan LL 20.16 -1.22 4.59 -21.54 10.99 0.87 44.31 6.39 27.39 -0.76 10-yr Treasury, Ryan ALM 1730.066 DJ Corporate 379.899 Aggregate, Barclays Capital 1939.110 High Yield 100, Merrill Lynch n.a. Fixed-Rate MBS, Barclays 1984.240 Muni Master, Merrill n.a. Treasury, Ryan ALM BNED 84.7 528.6 35.5 84.7 -24.4 2.25 Close JBSS 96,545 92,333 78,105 59,342 49,182 Corporate Borrowing Rates and Yields Bond total return index HTGM Symbol Sources: Ryan ALM; Tullett Prebon; WSJ Market Data Group Yield/Rate (%) Last (l)Week ago CBI Company 3.75% Tuesday CLXT 52-Week High Low 3.00 t 1.00 3.75% 206-855-6323 SANM Volume % chg from Latest Session (000) 65-day avg Close % chg notes and bonds Accelin Loans LLC Kaneohe, HI OXFD Volume Movers Benchmark Yields Treasury yield curve andtoRates Yield maturity of current bills, t 4.00% NLS 9.38 4.45 5.45 13.35 38.86 * Volumes of 100,000 shares or more are rounded to the nearest thousand 3.94% Bankrate.com avg†: AKS 20.76 19.07 18.22 17.62 17.61 s U.S. consumer rates UA 1.53 0.41 0.45 1.76 1.59 CREDIT MARKETS & CURRENCIES Consumer Rates and Returns to Investor UAA 8.90 2.56 2.92 11.75 10.62 Most Active Stocks Company Total volume* 957,935,808 12,949,219 Adv. volume* 528,403,825 5,698,001 Decl. volume* 418,632,681 6,933,054 Issues traded 3,067 333 Advances 1,855 164 Declines 1,105 144 Unchanged 107 25 New highs 172 3 New lows 55 7 Closing tick 80 6 Closing Arms† 1.43 1.49 Block trades* 7,513 130 Percentage Losers Latest Session Close Net chg % chg Sources: SIX Financial Information; WSJ Market Data Group WSJ .COM Low 46.30 4304.77 PHLX§ Gold/Silver Interest rate unch. 4.4 0.15 N D J FMAM J J A S O 2016 2017 After Hours % chg High 3.2 -0.31 10-year Treasury note yield Net chg 7.1 533.64 30-year ﬁxed-rate mortgage Last 11.6 101.45 Americas Brazil Canada Mexico Chile Volume (000) Symbol 18.5 532.32 -3.05 Company 17.4 101.42 -1.17 -1.42 NYSE NYSE Amer. 455.65 535.60 0.03 Volume, Advancers, Decliners 545.98 102.31 -0.31 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. Most-active issues in late trading 13.3 14.5 8.5 NYSE Arca Pharma World 25.0 28.5 15.0 0.50 Philadelphia Stock Exchange 30.5 31.1 22.0 KBW Bank PHLX§ Semiconductor CBOE Volatility 5046.37 4660.46 10.4 2085.18 0.17 4103.24 -13.10 29.6 10038.13 2581.07 0.09 2.71 23441.76 17888.28 Late Trading TR/CC CRB Index Crude oil, $ per barrel Natural gas, $/MMBtu Gold, $ per troy oz. 600.73 0.04 187.56 54.38 2.896 1267.00 0.03 0.23 -0.070 -7.10 0.01 600.73 527.06 0.01 195.14 54.45 0.42 3.93 -2.36 -0.56 1346.00 166.50 42.53 2.56 1127.80 % Chg 12.38 YTD % chg 5.90 0.94 -2.57 1.23 16.52 -0.21 -22.23 -1.51 10.17 For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. B14 | Wednesday, November 1, 2017 COMMODITIES Futures Contracts Open Metal & Petroleum Futures Contract High hi lo Low Open Settle 3.1000 3.1075 3.1035 3.1370 3.0850 3.0925 Open interest Chg Corn (CBT)-5,000 bu.; cents per bu. 348.00 348.75 345.50 345.75 –3.00 759,768 Dec March'18 362.00 362.75 359.25 359.50 –3.25 339,510 Oats (CBT)-5,000 bu.; cents per bu. 264.00 267.00 257.00 264.75 1.50 4,943 Dec March'18 268.75 270.00 263.25 269.25 1.25 2,333 Soybeans (CBT)-5,000 bu.; cents per bu. 972.75 977.50 971.00 973.75 1.00 17,783 Nov Jan'18 984.50 988.50 982.00 984.75 .25 311,694 Soybean Meal (CBT)-100 tons; $ per ton. 312.50 314.20 311.20 311.80 –.50 130,843 Dec Jan'18 314.40 316.10 313.30 313.80 –.50 95,950 Soybean Oil (CBT)-60,000 lbs.; cents per lb. 34.68 34.79 34.48 34.75 .07 150,977 Dec Jan'18 34.84 34.95 34.65 34.92 .08 102,062 Rough Rice (CBT)-2,000 cwt.; $ per cwt. 1145.00 1145.00 1123.50 1129.00 –16.00 1,232 Nov Jan'18 1176.00 1178.00 1151.00 1159.50 –17.00 8,691 Wheat (CBT)-5,000 bu.; cents per bu. 425.00 426.25 t 416.25 418.50 –6.25 279,130 Dec March'18 443.25 444.50 t 433.75 436.00 –7.00 121,079 Wheat (KC)-5,000 bu.; cents per bu. 422.00 423.75 t 413.50 416.50 –5.25 152,780 Dec July'18 473.00 473.75 t 463.25 466.25 –6.00 30,938 Wheat (MPLS)-5,000 bu.; cents per bu. 617.75 619.50 612.00 612.75 –5.75 34,894 Dec March'18 631.00 632.50 626.25 626.75 –4.50 25,328 Cattle-Feeder (CME)-50,000 lbs.; cents per lb. 158.500 160.050 157.925 159.425 1.100 10,786 Nov Jan'18 157.200 160.300 s 157.150 159.575 2.225 26,726 Cattle-Live (CME)-40,000 lbs.; cents per lb. 119.800 121.000 118.525 120.500 .925 121 Oct Dec 123.225 125.900 s 122.900 125.625 2.225 133,525 Hogs-Lean (CME)-40,000 lbs.; cents per lb. 65.625 68.175 s 65.425 68.000 2.825 107,789 Dec Feb'18 71.375 73.175 s 71.200 73.000 1.950 57,362 Lumber (CME)-110,000 bd. ft., $ per 1,000 bd. ft. 452.20 458.40 s 452.20 458.40 10.00 1,690 Nov Jan'18 439.30 448.00 s 439.30 444.00 5.30 4,468 Milk (CME)-200,000 lbs., cents per lb. 16.72 16.73 16.71 16.72 .01 3,818 Oct Nov 16.52 16.70 16.49 16.58 .04 4,591 3.0920 –0.0100 2,215 3.1010 –0.0110 158,202 Gold (CMX)-100 troy oz.; $ per troy oz. Nov 1273.10 1274.60 1266.10 1267.00 –7.10 Dec 1277.60 1279.10 1268.30 1270.50 –7.20 Feb'18 1281.30 1282.40 1272.80 1274.70 –7.20 April 1284.30 1285.20 1277.10 1278.60 –7.10 June 1288.40 1290.50 1280.50 1282.50 –7.10 Dec 1300.80 1300.80 1292.60 1294.70 –7.00 Palladium (NYM) - 50 troy oz.; $ per troy oz. Dec 961.55 979.80 961.45 979.15 16.50 March'18 959.00 972.05 957.60 971.00 16.35 Platinum (NYM)-50 troy oz.; $ per troy oz. Nov 914.40 917.20 914.00 915.80 –3.10 Jan'18 922.30 927.70 916.80 919.60 –3.10 Silver (CMX)-5,000 troy oz.; $ per troy oz. Nov 16.795 16.795 16.650 16.645 –0.157 Dec 16.865 16.910 16.645 16.693 –0.154 Crude Oil, Light Sweet (NYM)-1,000 bbls.; $ per bbl. Dec 54.08 54.85 53.93 54.38 0.23 Jan'18 54.29 55.05 54.15 54.59 0.22 Feb 54.43 55.14 54.26 54.69 0.21 March 54.46 55.15 54.30 54.72 0.19 June 54.14 54.73 54.04 54.36 0.10 Dec 52.94 53.34 52.86 53.00 –0.04 NY Harbor ULSD (NYM)-42,000 gal.; $ per gal. Nov 1.8793 1.8896 s 1.8673 1.8845 .0068 Dec 1.8767 1.8896 s 1.8657 1.8805 .0043 Gasoline-NY RBOB (NYM)-42,000 gal.; $ per gal. Nov 1.7663 1.7841 s 1.7525 1.7796 .0155 Dec 1.7150 1.7493 s 1.7012 1.7325 .0193 Natural Gas (NYM)-10,000 MMBtu.; $ per MMBtu. Dec 2.988 3.005 t 2.882 2.896 –.070 Jan'18 3.125 3.133 t 3.016 3.026 –.074 Feb 3.118 3.134 t 3.020 3.030 –.073 March 3.081 3.096 t 2.988 3.000 –.066 April 2.914 2.924 2.851 2.862 –.046 May 2.898 2.907 2.840 2.851 –.042 Settle Agriculture Futures Open Chg interest Copper-High (CMX)-25,000 lbs.; $ per lb. Nov Dec Contract High hilo Low 610 382,729 84,741 16,398 14,290 10,470 28,917 4,288 17 70,116 593 140,830 585,325 328,329 127,951 254,702 212,913 270,792 3,824 139,987 7,109 158,391 310,739 211,055 83,033 170,563 124,824 79,837 WSJ.com/commodities Contract High hilo Low Open Settle Chg Cocoa (ICE-US)-10 metric tons; $ per ton. 2,118 2,120 2,090 2,094 Dec March'18 2,108 2,111 2,083 2,089 Coffee (ICE-US)-37,500 lbs.; cents per lb. 125.10 125.70 124.15 125.10 Dec March'18 129.00 129.30 127.75 128.60 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. March 14.65 14.79 14.59 14.74 May 14.71 14.84 14.65 14.82 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. March 27.29 27.29 27.29 27.20 Cotton (ICE-US)-50,000 lbs.; cents per lb. Dec 68.71 68.91 68.11 68.38 March'18 68.60 68.79 68.07 68.34 Orange Juice (ICE-US)-15,000 lbs.; cents per lb. Nov 157.30 158.65 154.30 156.25 Jan'18 154.65 157.00 153.10 154.50 Open interest –24 88,851 –22 107,290 –.80 116,926 –.85 66,036 .01 429,334 .03 135,370 –.09 2,744 –.26 107,439 –.24 83,031 –.55 –.15 244 5,931 Tuesday, October 31, 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. Treasury Bonds (CBT)-$100,000; pts 32nds of 100% 152-090 152-190 152-030 152-150 3.0 729,116 Dec March'18 151-050 151-130 150-310 151-100 3.0 5,744 Treasury Notes (CBT)-$100,000; pts 32nds of 100% 125-000 125-035 124-280 124-300 –2.5 3,213,820 Dec March'18 124-215 124-235 124-175 124-195 –2.0 21,463 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% 117-080 117-097 117-045 117-060 –2.2 3,064,630 Dec March'18 116-317 116-317 116-315 116-307 –2.0 23,993 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% Dec 107-230 107-235 107-212 107-217 –1.2 1,632,980 March'18 107-170 107-170 107-162 107-165 –1.2 7,709 30 Day Federal Funds (CBT)-$5,000,000; 100 - daily avg. Oct 98.845 98.848 98.845 98.845 … 231,699 Jan'18 98.630 98.635 98.625 98.630 –.005 347,464 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% 100.953 100.984 100.859 100.938 .031 29,068 Dec 1 Month Libor (CME)-$3,000,000; pts of 100% Nov ... ... ... 98.7500 … 928 Dec ... ... ... 98.5675 … 2,264 Eurodollar (CME)-$1,000,000; pts of 100% 98.5900 98.5900 98.5875 98.5875 –.0025 99,885 Nov Dec 98.4900 98.4950 98.4850 98.4900 … 1,733,340 March'18 98.3550 98.3600 98.3450 98.3500 –.0100 1,277,101 Dec 98.0900 98.0950 98.0650 98.0750 –.0100 1,573,341 Currency Futures Tuesday Energy 0.9708 1.0521 2.770 2.720 2.640 2.470 2.590 0.920 2.630 57.850 11.750 Propane,tet,Mont Belvieu-g Butane,normal,Mont Belvieu-g NaturalGas,HenryHub-i NaturalGas,TranscoZone3-i NaturalGas,TranscoZone6NY-i NaturalGas,PanhandleEast-i NaturalGas,Opal-i NaturalGas,MarcellusNE PA-i NaturalGas,HaynesvilleN.LA-i Coal,C.Aplc.,12500Btu,1.2SO2-r,w Coal,PwdrRvrBsn,8800Btu,0.8SO2-r,w Metals Tuesday 16.8200 12614 (U.S.$ equivalent) Coins,wholesale $1,000 face-a Other metals LBMA Platinum Price PM *918.0 Platinum,Engelhard industrial 920.0 Platinum,Engelhard fabricated 1020.0 Palladium,Engelhard industrial 981.0 Palladium,Engelhard fabricated 1081.0 Aluminum, LME, $ per metric ton *2143.0 Copper,Comex spot 3.0920 Iron Ore, 62% Fe CFR China-s 58.4 Shredded Scrap, US Midwest-s,w 286 Steel, HRC USA, FOB Midwest Mill-s 619 Fibers and Textiles Gold, per troy oz 1274.81 1370.42 1270.15 1409.87 *1272.75 *1272.00 1320.59 1333.29 1333.29 1539.00 1247.66 1333.29 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA Gold Price AM LBMA Gold Price PM Krugerrand,wholesale-e Maple Leaf-e American Eagle-e Mexican peso-e Austria crown-e Austria phil-e Silver, troy oz. 16.7800 20.1360 16.6750 20.8440 £12.7200 Engelhard industrial Engelhard fabricated Handy & Harman base Handy & Harman fabricated LBMA spot price 0.6100 0.6788 *79.10 n.a. 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 Grains and Feeds n.a. 71 3.1300 93.2 473.0 230 88 220 2.9475 372.00 24.00 7.7363 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 Tuesday 308.30 9.3150 7.4275 4.1300 3.4850 5.2425 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 Nov .8850 .8856 .8797 .8801 –.0041 184.32 172.91 0.8481 2.2500 173.25 176.00 73.25 2344 1.2495 1.4420 0.8950 15.35 0.78 66.68 1.1766 0.9307 n.a. 165.75 Fats and Oils 34.5500 0.2300 0.3600 0.3338 0.2500 n.a. 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 Dec .8856 .8871 .8810 .8814 –.0041 262,845 .7793 .7799 .7794 .7802 .7746 .7746 .7756 –.0037 1,301 .7758 –.0036 154,058 Nov Dec 1.3213 1.3223 1.3289 1.3307 1.3208 1.3209 1.3289 1.3301 Dec March'18 1.0081 1.0120 1.0084 1.0157 1.0036 1.0105 1.0051 –.0030 1.0119 –.0030 .7696 .7684 .7690 .7659 .7686 .7648 .7696 .7694 .7690 .7664 .7689 .7648 .7642 .7636 .7638 .7621 .7634 .7648 Canadian Dollar (CME)-CAD 100,000; $ per CAD British Pound (CME)-£62,500; $ per £ Swiss Franc (CME)-CHF 125,000; $ per CHF Australian Dollar (CME)-AUD 100,000; $ per AUD Nov Dec Jan'18 Feb March June t .05157 .05190 Dec March'18 .05074 .05112 Euro (CME)-€125,000; $ per € 1.1650 1.1666 Nov Dec 1.1680 1.1692 October 31, 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. Sept. index level Week Latest ago Chg From (%) Aug. '17 Sept. '16 U.S. consumer price index 0.53 0.19 246.819 252.941 All items Core 2.2 1.7 Switzerland Britain Australia Week ago 52-Week High Low 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 0.00 0.00 0.00 0.50 0.25 1.50 1.13 1.24 U.S. 1.38 0.15 0.00 1.75 1.75 1.00 Federal funds Effective rate High Low Bid Offer 1.1100 1.3125 1.0300 1.0700 1.0800 1.1700 1.3125 1.0000 1.1600 1.1700 1.2000 1.3125 1.1600 1.1700 1.1900 .05180 .00033 176,308 .05102 .00032 620 1.1635 1.1652 1.1660 1.1681 AlerianMLPETF CnsmrDiscSelSector CnsStapleSelSector DBGoldDoubleLgETN DBGoldDoubleShrt EnSelectSectorSPDR FinSelSectorSPDR GuggS&P500EW HealthCareSelSect IndSelSectorSPDR iShIntermCredBd iSh1-3YCreditBond iSh3-7YTreasuryBd iShCoreMSCIEAFEETF iShCoreMSCIEmgMk iShCoreMSCITotInt iShCoreS&P500ETF iShCoreS&PMdCp iShCoreS&PSmCpETF iShS&PTotlUSStkMkt iShCoreUSAggBd iShSelectDividend iShEdgeMSCIMinEAFE iShEdgeMSCIMinUSA iShGoldTr iShiBoxx$InvGrCpBd iShiBoxx$HYCpBd iShJPMUSDEmgBd iShMBSETF iShMSCIACWIETF iShMSCIBrazilCap iShMSCI EAFE iShMSCIEAFESC iShMSCIEmgMarkets iShMSCIEurozoneETF iShMSCIJapanETF iShNasdaqBiotech iShNatlMuniBdETF iShRussell1000Gwth iShRussell1000ETF iShRussell1000Val iShRussell2000Gwth iShRussell2000ETF iShRussell2000Val iShRussell3000ETF iShRussellMid-Cap iShRussellMCValue iShS&PMC400Growth iShS&P500Growth AMLP XLY XLP DGP DZZ XLE XLF RSP XLV XLI CIU CSJ IEI IEFA IEMG IXUS IVV IJH IJR ITOT AGG DVY EFAV USMV IAU LQD HYG EMB MBB ACWI EWZ EFA SCZ EEM EZU EWJ IBB MUB IWF IWB IWD IWO IWM IWN IWV IWR IWS IJK IVW 10.72 91.99 53.09 23.94 5.65 67.91 26.60 96.58 81.11 71.53 109.92 105.25 123.12 65.25 55.78 62.19 258.81 182.96 74.86 58.92 109.47 94.75 71.78 51.32 12.21 121.14 88.47 116.25 106.91 70.30 40.17 69.63 63.04 46.28 43.83 58.65 314.18 110.76 129.96 143.11 119.39 181.60 149.26 124.18 152.51 200.32 85.64 209.13 148.14 –0.19 –14.9 0.01 13.0 2.7 0.84 –1.48 19.0 1.05 –17.6 0.33 –9.8 –0.26 14.4 0.19 11.5 –0.18 17.7 –0.40 15.0 1.6 –0.08 0.3 –0.01 0.5 –0.09 0.40 21.7 0.85 31.4 0.48 23.2 0.11 15.0 0.51 10.7 8.9 1.00 0.19 14.9 1.3 –0.06 7.0 0.15 0.28 17.2 0.10 13.5 –0.41 10.2 3.4 –0.14 2.2 0.02 5.5 0.09 0.5 –0.03 0.31 18.8 0.02 20.5 0.42 20.6 0.59 26.5 0.94 32.2 0.53 26.7 0.43 20.0 –0.78 18.4 2.4 –0.03 0.26 23.9 0.11 15.0 6.6 0.04 1.03 18.0 0.71 10.7 4.4 0.52 0.22 14.7 0.34 12.0 6.5 0.22 0.60 14.8 0.11 21.6 ETF 1.020 1.005 1.300 0.240 1.130 1.105 1.180 0.350 1.260 1.245 1.260 0.500 4 weeks 13 weeks 26 weeks Total return close YTD total return (%) Yield (%) Latest Low High Index Index Futures Dec March'18 23290 23279 23352 23339 23269 23263 23325 23317 2567.20 2575.00 2567.00 2572.70 S&P 500 Index (CME)-$250 x index Dec Mini S&P 500 (CME)-$50 x index Dec 2568.00 2575.50 2566.75 2572.75 March'18 2567.50 2575.25 2567.50 2573.00 Mini S&P Midcap 400 (CME)-$100 x index Dec 1823.50 1837.20 1823.00 1833.90 Mini Nasdaq 100 (CME)-$20 x index Dec 6221.8 6258.8 s 6219.3 6249.8 March'18 6233.5 6271.0 s 6232.8 6262.8 Mini Russell 2000 (ICE-US)-$100 x index Dec 1491.20 1508.00 1490.40 1502.80 Mini Russell 1000 (ICE-US)-$100 x index Dec 1426.00 1427.00 1424.20 1425.90 U.S. Dollar Index (ICE-US)-$1,000 x index Dec 94.37 94.60 94.35 94.43 March'18 94.08 94.29 94.08 94.14 IVE PFF TIP SHY IEF TLT IWP MINT QQQ SPLV BKLN JNK GLD SCHF SCHB SCHX DIA MDY SPY SDY XLK XLU GDX VGT VBR VIG VEA VWO VGK VEU VUG VHT VYM BIV VCIT VV VO VOE VNQ VOO BSV VCSH VB BND BNDX VXUS VTI VT VTV HEDJ DXJ 34 158,763 38 1,647 4.40 58,430 4.50 3,124,388 4.50 67,215 9.10 92,750 25.5 269,811 25.3 1,679 9.90 65,918 2.80 271 –.02 –.02 47,866 2,158 Source: SIX Financial Information 3.2 Total return close YTD total return (%) Yield (%) Latest Low High Index Mortgage-Backed Bloomberg Barclays 2.600 2.100 2.790 U.S. Aggregate U.S. Corporate Indexes Bloomberg Barclays 1984.24 2.2 Mortgage-Backed 1954.45 1.8 Ginnie Mae (GNMA) 2.810 2.170 3.090 2.860 2.270 3.120 3.150 2.950 3.520 1162.93 2.3 Fannie mae (FNMA) 2.880 2.300 3.120 2622.96 4.0 Intermediate 2.700 2.360 3.010 1790.80 2.4 Freddie Mac (FHLMC) 2.890 2.310 3.130 3843.29 9.3 Long term 4.150 4.110 4.710 n.a. n.a. Muni Master n.a. n.a. n.a. 567.41 4.2 Double-A-rated 2.630 2.290 2.870 n.a. n.a. 7-12 year n.a. n.a. n.a. 3.440 3.320 3.870 n.a. n.a. 12-22 year n.a. n.a. n.a. n.a. n.a. 22-plus year n.a. n.a. n.a. 2779.73 717.92 5.6 U.S. Corporate 6.3 Triple-B-rated High Yield Bonds Merrill Lynch n.a. n.a. High Yield Constrained n.a. n.a. n.a. n.a. n.a. Triple-C-rated n.a. n.a. n.a. 543.31 1.2 Global Government 1.440 1.080 1.560 n.a. n.a. High Yield 100 n.a. n.a. n.a. 755.79 0.3 Canada 2.020 1.390 2.190 n.a. n.a. Global High Yield Constrained n.a. n.a. n.a. n.a. Europe High Yield Constrained n.a. n.a. n.a. U.S Agency Bloomberg Barclays 712.74 n.a. n.a. Global Government J.P. Morgan† n.a. 0.9 EMU§ n.a. n.a. n.a. France 0.810 0.540 1.210 510.25 -0.8 Germany 0.430 0.170 0.620 1638.92 2.1 U.S Agency 1.970 1.330 2.010 287.48 -0.2 Japan 0.420 0.170 0.460 1466.36 1.4 10-20 years 1.810 1.140 1.840 562.92 -0.6 Netherlands 0.550 0.290 0.760 3348.32 7.1 20-plus years 2.960 2.670 3.460 914.77 U.K. 1.640 1.340 1.790 2.810 2.470 3.090 n.a. 4.8 Yankee 2457.05 0.1 n.a. Emerging Markets ** ** EMBI Global Index n.a. n.a. n.a. † In local currency § Euro-zone bonds Sources: Merrill Lynch; Bloomberg Barclays; J.P.Morgan Global Government Bonds: Mapping Yields 30 days 60 days 1.500 2.250 0.100 Other short-term rates Week ago 52-Week high low 0.100 2.750 1.450 Spread Under/Over U.S. Treasurys, in basis points Latest Prev Year ago 1.576 2.371 1.483 2.333 0.845 1.826 1.833 t 2.678 t l 1.859 1.965 1.652 24.1 28.4 l 2.741 2.847 2.353 30.3 37.0 52.7 France 2 -0.595 s 10 0.627 t l -0.602 -0.482 -217.8 -142.8 l 0.635 0.748 -0.584 -218.6 0.470 -174.8 -173.6 -135.5 Germany 2 -0.750 s 10 0.367 t l -0.752 -0.686 -232.8 -146.6 l 0.368 0.466 -0.621 -234.1 0.166 -200.8 -200.2 -165.9 Italy 2 -0.201 s 10 1.828 t l -0.210 -0.123 0.004 -179.3 -178.6 -84.1 l 1.842 2.116 1.612 -54.7 -52.9 -21.3 Japan 2 -0.160 t 10 0.069 t l -0.152 -0.115 -0.242 -108.6 0.071 0.065 -175.2 -0.052 -230.7 -172.8 l -229.9 -187.8 Spain 2 -0.365 s 10 1.467 t l -0.371 -0.323 -0.155 -195.7 -194.6 -100.0 l 1.491 1.607 1.222 -90.8 -87.9 -60.4 0.461 s 1.334 t l 0.454 0.456 0.263 -113.1 -112.2 -58.2 l 1.337 1.362 1.145 -104.1 -103.4 -68.1 10 0.500 Year ago l Australia 2 0.000 Month ago l 2.750 2.750 Yield (%) Latest(l) 0 20 40 60 80 100 120 Previous U.S. 2 1.592 s 10 2.375 s 2.750 2.050 3.466 3.487 3.865 3.031 3.486 3.513 3.899 3.063 Latest Country/ Coupon (%) Maturity, in years 0.050 30-year mortgage yields 1.750 U.K. 2 4.250 10 109.15 38.49 113.80 84.30 106.16 124.46 116.39 101.85 152.15 46.53 23.12 37.24 120.67 34.08 62.23 61.42 233.63 333.62 257.15 92.48 62.95 55.12 22.48 163.23 128.89 96.78 44.18 44.63 58.60 53.74 136.59 151.14 82.48 84.49 87.95 118.12 149.13 106.50 82.20 236.13 79.69 80.04 143.53 81.77 54.88 55.84 132.33 72.21 101.65 66.41 58.07 0.10 0.21 0.04 –0.06 –0.07 0.03 0.55 –0.02 0.38 ... –0.09 0.05 –0.38 0.44 0.18 0.08 0.13 0.53 0.16 ... 0.43 0.11 –1.23 0.44 0.51 –0.04 0.45 0.56 0.50 0.43 0.31 0.05 0.02 –0.11 –0.09 0.14 0.43 0.33 –0.01 0.11 –0.04 0.01 0.69 –0.06 –0.02 0.47 0.20 0.32 –0.05 0.73 0.75 7.7 3.4 0.6 –0.2 1.3 4.5 19.5 0.5 28.4 11.9 –1.0 2.2 10.1 23.1 14.9 15.3 18.3 10.6 15.0 8.1 30.2 13.5 7.5 34.3 6.5 13.6 20.9 24.7 22.2 21.6 22.5 19.2 8.9 1.7 2.6 15.4 13.3 9.6 –0.4 15.0 0.3 0.8 11.3 1.2 1.1 21.7 14.8 18.4 9.3 15.7 17.2 3.00 3.00 2.25 Corporate Debt 0.62 Investment-grade spreads that tightened the most… in that same company’s share price. Commercial paper (AA financial) 1.26 1.28 1.31 Libor One month Three month Six month One year 1.24333 1.38122 1.57511 1.84844 1.23955 1.37064 1.56444 1.83456 1.24333 1.38122 1.57511 1.84844 0.53044 0.87567 1.24267 1.55622 Euro Libor One month Three month Six month One year -0.399 -0.379 -0.322 -0.233 -0.405 -0.379 -0.317 -0.226 -0.376 -0.322 -0.212 -0.071 -0.405 -0.381 -0.322 -0.233 Euro interbank offered rate (Euribor) One month Three month Six month One year -0.372 -0.331 -0.276 -0.185 Latest -0.372 -0.330 -0.274 -0.183 Value Traded -0.366 -0.311 -0.210 -0.069 -0.375 -0.332 -0.276 -0.185 52-Week High Low DTCC GCF Repo Index Treasury MBS 1.215 25.300 1.366 0.244 1.239 110.300 1.506 0.257 Open Implied Settle Change Interest Rate DTCC GCF Repo Index Futures Treasury Oct Treasury Nov Treasury Dec 80.7 Source: Tullett Prebon 3.00 90 days Closing Chg YTD Symbol Price (%) (%) iShS&P500ValueETF iShUSPfdStk iShTIPSBondETF iSh1-3YTreasuryBd iSh7-10YTreasuryBd iSh20+YTreasuryBd iShRussellMCGrowth PIMCOEnhShMaturity PwrShQQQ 1 PwrShS&P500LoVol PwrShSrLoanPtf SPDRBloomBarcHYBd SPDR Gold SchwabIntEquity SchwabUS BrdMkt SchwabUS LC SPDR DJIA Tr SPDR S&PMdCpTr SPDR S&P 500 SPDR S&P Div TechSelectSector UtilitiesSelSector VanEckGoldMiner VangdInfoTech VangdSC Val VangdDivApp VangdFTSEDevMk VangdFTSE EM VangdFTSE Europe VangdFTSEAWxUS VangdGrowth VangdHlthCr VangdHiDiv VangdIntermBd VangdIntrCorpBd VangdLC VangdMC VangdMC Val VangdREIT VangdS&P500 VangdST Bond VangdSTCpBd VangdSC VangdTotalBd VangdTotIntlBd VangdTotIntlStk VangdTotalStk VangdTotlWrld VangdValue WisdTrEuropeHdg WisdTrJapanHdg .0012 5,359 .0012 423,384 Mini DJ Industrial Average (CBT)-$5 x index Call money Largest 100 exchange-traded funds, latest session ETF –.0028 1,213 –.0027 129,358 –.0028 631 –.0027 526 –.0027 764 –.0026 243 Return on investment and spreads over Treasurys and/or yields paid to investors compared with 52-week highs and lows for different types of bonds 0.000 Treasury bill auction 0.3500 0.5625 0.2500 0.3000 0.3200 Exchange-Traded Portfolios | WSJ.com/ETFresearch Tuesday, October 31, 2017 Closing Chg YTD Symbol Price (%) (%) —52-WEEK— High Low Fannie Mae Discount 1.75 Week Latest ago Secondary market U.S. government rates Prime rates U.S. Canada Japan 0.50 0.25 1.50 Overnight repurchase International rates Latest —52-WEEK— High Low 0.50 0.25 1.50 0.50 0.25 1.50 71,667 167 Yields and spreads over or under U.S. Treasurys on benchmark two-year and 10-year government bonds in selected other countries; arrows indicate whether the yield rose(s) or fell (t) in the latest session Borrowing Benchmarks | WSJ.com/bonds Money Rates Inflation .7654 .7652 .7650 .7649 .7647 .7644 .0082 1,016 .0082 177,826 .05143 .05069 *Constrained indexes limit individual issuer concentrations to 2%; the High Yield 100 are the 100 largest bonds 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 10/30 Source: WSJ Market Data Group Open interest Bonds | WSJ.com/bonds Tracking Bond Benchmarks 1939.11 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 Chg Nov Dec 2,811 Broad Market Bloomberg Barclays Food Settle Mexican Peso (CME)-MXN 500,000; $ per MXN Interest Rate Futures Japanese Yen (CME)-¥12,500,000; $ per 100¥ Cash Prices | WSJ.com/commodities Contract High hilo Low Open 98.852 -0.003 4427 1.148 98.850 unch. 7953 1.150 98.715 0.005 1991 1.285 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; General Electric Capital Corp.; Tullett Prebon Information, Ltd. Issuer Symbol Coupon (%) Bank of America AT&T Kinder Morgan Mosaic BAC T KMI MOS 8.000 Jan. 30, ’49 3.800 March 15, ’22 5.000 Feb. 15, ’21 5.625 Nov. 15, ’43 Royal Bank of Scotland CVS Health FedEx Bank of Nova Scotia RBS CVS FDX BNS 8.000 4.750 4.400 2.350 Maturity Aug. 10, ’49 Dec. 1, ’22 Jan. 15, ’47 Oct. 21, ’20 Current Spread*, in basis points One-day change Last week Stock Performance Close ($) % chg –107 56 53 235 –47 –23 –17 –10 –98 77 n.a. 243 27.39 33.65 18.11 22.34 –0.76 0.33 0.06 7.15 278 71 114 44 –10 –9 –9 –8 304 70 129 42 7.59 68.53 225.81 64.52 0.13 0.12 –0.84 –0.14 n.a. –114 n.a. 181 … 100.61 28.86 35.71 … –0.79 –6.81 –6.62 n.a. 130 174 124 ... 100.97 98.29 51.01 ... ... –0.20 –6.68 …And spreads that widened the most Macy's Retail Holdings JPMorgan Chase Omega Healthcare Investors Mylan NV M JPM OHI MYL 6.700 7.900 4.500 5.250 July 15, ’34 April 30, ’49 April 1, ’27 June 15, ’46 390 –69 225 205 ABN Amro Bank Celgene Time Warner Qualcomm ABNANV CELG TWX QCOM 4.800 5.000 4.850 4.300 April 18, ’26 Aug. 15, ’45 July 15, ’45 May 20, ’47 145 153 195 136 30 26 19 15 11 11 11 9 High-yield issues with the biggest price increases… Issuer Symbol Mattel Sprint Capital Parker Drilling Windstream Services MAT S PKD WIN Frontier Communications Weatherford International Jones Energy Holdings Community Health Systems FTR WFT JONE CYH Coupon (%) 6.200 6.875 7.500 7.750 Maturity Bond Price as % of face value Current One-day change Oct. 1, ’40 Nov. 15, ’28 Aug. 1, ’20 Oct. 15, ’20 98.575 107.375 91.500 90.000 11.000 Sept. 15, ’25 6.500 Aug. 1, ’36 9.250 March 15, ’23 7.125 July 15, ’20 85.938 83.500 80.500 87.250 3.45 Last week Stock Performance Close ($) % chg n.a. 111.250 n.a. 85.500 14.12 … 1.05 1.88 –9.37 … 0.96 3.87 1.44 1.28 1.25 1.13 83.250 85.000 77.000 89.250 12.11 3.47 1.28 5.90 1.94 6.12 4.92 0.85 –3.00 –2.92 –2.50 –2.25 106.125 94.375 60.000 98.000 ... ... ... 13.98 ... ... ... 0.29 102.250 103.875 83.375 99.210 … 25.32 … ... … –4.31 … ... 1.94 1.50 1.50 …And with the biggest price decreases First Quantum Minerals Spectrum Management Holding Murray Energy Freeport–McMoran FMCN 7.250 TWC 4.500 MURREN 11.250 FCX 5.400 April 1, ’23 Sept. 15, ’42 April 15, ’21 Nov. 14, ’34 103.000 91.724 54.750 97.500 Avis Budget Car Rental United States Steel Endo Finance Vine Oil & Gas CAR X ENDP VRI 5.500 6.875 5.375 8.750 April 1, ’23 Aug. 15, ’25 Jan. 15, ’23 April 15, ’23 100.320 102.250 80.125 97.570 –1.68 –1.63 –1.13 –0.93 *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 or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. Wednesday, November 1, 2017 | B15 * * MONEY & INVESTING Carlyle’s Funds Deliver in Strong Market Performance-based fees drive profit; firm also reports progress in fundraising effort BY MIRIAM GOTTFRIED Carlyle Group LP posted a third-quarter profit as the private-equity firm benefited from strong growth in fees it collects based on the performance of its funds. For the quarter, the Washington asset manager reported earnings of $44.6 million, or 43 cents a share. In the yearearlier quarter, Carlyle posted a slim profit of $800,000, or a loss of 2 cents a share on a diluted basis. Economic net income, a closely watched performance measure that reflects changes in the value of the firm’s holdings, rose to $192.3 million, or 56 cents a share, from $69.7 million, or 21 cents a share, a year earlier. The latest result topped the 51-cent average estimate of analysts in a FactSet poll. Private-equity managers are benefiting from strong global markets and an appetite among institutions for highreturn investments, which extends to credit and real estate. Carlyle’s fee-related earnings more than tripled, thanks in part to insurance recoveries related to commodities. Performance fees climbed by 33% as Carlyle invested more of the money in its funds. The firm is also making progress on its goal to raise $100 billion in new capital over the next few years. Carlyle raised $7.1 billion in the third quarter and said 2017 could be the best fundraising year in its history. The firm said the fourth quarter was shaping up to be particularly strong, having raised more capital in October than during the entire third quarter. But the quest for new capital comes at a cost, as Carlyle said fundraising expenses would weigh on fourth-quarter results. Shares of the firm slipped 2% to $22.05 on Tuesday. Carlyle’s private-equity funds appreciated 4% during the third quarter. Among its peers, Blackstone Group LP’s buyout funds appreciated 3.3% in the quarter, while KKR & Co.’s private-equity portfolio gained 3.9%. The S&P 500 index rose 4%. Distributable income, the slice of profits available for payout to shareholders, rose to 75 cents a share from 66 cents a year earlier. Carlyle said it would pay a 56-cent dividend, up from 50 cents a year earlier. Last week, Carlyle named Glenn Youngkin and Kewsong Lee to the position of co-CEO. The two will succeed cofounders David Rubenstein and William Conway, who will be promoted to senior board positions alongside the firm’s third co-founder Daniel D’Aniello. “In our view, the best time to bring in new leadership is when things are going well,” Mr. Rubenstein said. “We have the good fortune to have individuals who are ready to succeed us.” As of Sept. 30, Carlyle had $174.4 billion in assets under management, up from $169.1 billion a year earlier and $169.8 billion in the second quarter. Fee-earning assets under management declined, primarily because of $5 billion of outflows from Carlyle’s nowshuttered hedge-fund platform. The firm also moved to clean up the last of some old messes during the quarter. In addition to the insurance it recovered from the closure of its commodities business, Carlyle disposed of its ownership stake in Brazilian residential developer Urbplan, which had been consolidated into its results since 2013. The firm recorded a $26 million hit to economic net income related to Urbplan, including a tax benefit. “We are giving our new CEOs a clean slate,” Mr. Conway said of the efforts to resolve outstanding issues that have been weighing on Carlyle’s results for years. Third-quarter results also included a $25 million benefit as the company reversed a reserve related to the resolution of litigation around Carlyle Capital Corp., a failed financial-crisis era bond fund. Investors had sued Carlyle, alleging it didn’t do enough to save the fund. But a judge in Guernsey, where the fund was incorporated, ruled on Sept. 4 in Carlyle’s favor. Coal imported from North Korea in 2010 at Dandong port in northeast China, a region whose resource-heavy economy has struggled. Chinese Port Manager Defaults A port-management company in northeast China defaulted on $150 million in bonds, as highly leveraged By Chao Deng in Beijing and James T. Areddy in Shanghai businesses get squeezed by Beijing’s campaign to weed out risks in the financial system. Dandong Port Group Co., which is controlled by Chinese construction magnate Wang Wenliang, told bondholders that it was unable to repay part of 1 billion yuan in bonds due Monday. The company cited “heavy interest-bearing debt burdens and high short-term payment pressure” and said it is working with underwriters to repay the investors. The port that Dandong manages is located at the mouth of the Yalu River on the border with North Korea. It has expanded energetically in recent years to handle soybean imports from the U.S. and coal from Mongolia, even as much of northeast China’s resourceheavy economy struggled. International sanctions on North Korea have crimped trade, but a company representative said the port halted business with the country in 2010 and so hasn’t been affected by the restrictions. “Dandong Group’s problems reflect the lackluster state of the whole Chinese economy and the northeast region,” said Shen Meng, director at Beijingbased investment bank Chanson & Co. Defaults, still rare in China, are expected to increase following the recently completed Communist Party congress, which handed President Xi Jinping a second five-year term and endorsed his broad program to make China a rich world power. To that end, Mr. Xi emphasized that the government would sustain a push begun this year to reduce high levels of debt that might pose a risk to the financial system. Money is increasingly tight for Chinese companies as banks respond to government calls to more closely scrutinize borrowers’ business plans and authorities crack down on riskier financing plays. Chinese firms have defaulted on 35 bond payments this year, compared with 78 last year and 23 in 2015, according to data from Shanghai Wind Information Co. The easing stems in part New Highs and Lows | WSJ.com/newhighs Continued From Page B12 Stock 52-Wk % Stock Sym Hi/Lo Chg ASML ProShrUSSemi SSG ProShrUSTech REW ProShsVIXMTFut VIXM TeucriumWheatFund WEAT UBSProSh3xInvCrd WTID US NatGas UNG VelocityShares3xLg UGAZ Velocity3xInvCrude DWT 10.44 16.94 23.05 6.14 21.13 5.92 8.31 19.35 -1.4 -1.0 -0.8 -1.1 -1.3 -2.4 -7.6 -1.8 NYSE American highs - 3 Ashford AINC CentralSecs CET LadenburgThalmann LTS 75.85 26.90 3.07 8.2 0.4 4.4 NYSE American lows - 7 Cohen ComstockMining GoldStandrdVntr IntlTowerHill Libbey TelInstrElec US Antimony COHN LODE GSV THM LBY TIK UAMY 9.83 0.11 1.29 0.40 6.12 2.90 0.21 -0.2 -7.7 -2.9 -5.4 -25.3 -3.3 -4.6 Nasdaq highs - 183 Ansys ANSS 137.05 0.7 Abiomed AdamasPharm AdvAcceltrApp Altaba AmerSoftware Apple Apptio Autodesk AveXis AxoGen Bio-Techne BoingoWireless Broadcom Brooks Auto CabotMicro CambridgeBncp CanterburyPark CavcoIndustries CboeGlobalMkts Cellectis ChinaInternet Cimpress CogentComm Cognex CognizantTech Cohu ColumbusMcKinn Corvel 52-Wk % Sym Hi/Lo Chg Stock ASML ABMD ADMS AAAP AABA AMSWA AAPL APTI ADSK AVXS AXGN TECH WIFI AVGO BRKS CCMP CATC CPHC CVCO CBOE CLLS CIFS CMPR CCOI CGNX CTSH COHU CMCO CRVL from a rebound in coal and steel prices that buoyed the bottom lines of some companies, but analysts say Beijing also have shown a preference for orchestrating rescues to fend off defaults. Asked if authorities would step in to help, a Dandong Port representative said “we’ve always worked with the local government” and declined to give details. Dandong Port Group is controlled by construction magnate Wang Wenliang. Dandong Port’s one billion yuan in bonds, issued in 2014, carried a coupon rate of 5.86% in annualized interest. Though the company made the 58.6 million yuan in interest due Monday, it couldn’t meet payment of principal on the bonds, whose investors exercised an option to sell them to the company early. The company has more than 40 billion yuan in unpaid debt, including several billion yuan 52-Wk % Sym Hi/Lo Chg Stock Stock 52-Wk % Sym Hi/Lo Chg 180.97 1.6 CSX-LinksCrudeOil 193.95 7.5 Cree 24.88 4.4 DataIO 81.17 0.6 Datawatch 70.27 1.8 DavisWorldwide 12.54 0.6 DraperOakwoodRt 169.65 1.4 Dunkin' 24.50 27.0 EXACT Sci 125.01 0.8 Ebix 107.02 -0.8 eHealth 20.75 2.0 ElectroScientific 131.51 6.0 EnantaPharma 23.49 4.1 EntegraFin 266.70 1.0 Entegris 34.54 2.9 EsquireFinancial 97.97 1.7 FARO Tech 74.00 4.2 Facebook 13.05 0.8 157.70 2.0 FidelityNasdComp 113.38 1.1 FirstBancshares 35.07 2.9 FT APxJapan 43.30 0.2 FT CloudComp 109.92 0.1 FT DorseyDyn5 53.95 2.9 FT DorseyFoc5 129.89 -0.4 FT NasdTechDiv 76.51 0.2 FTEurozoneAlpha 26.17 3.0 FT GlblAgri 41.50 9.0 FT JapanAlpha 61.20 2.5 FT MC CoreAlpha 25.94 0.6 USOI 37.43 4.0 CREE 13.10 4.3 DAIO 12.65 5.0 DWCH 25.19 0.8 DWLD 0.46 -7.0 DOTAR 60.66 ... DNKN 57.95 9.8 EXAS 68.20 1.7 EBIX 26.29 1.9 EHTH 18.10 3.1 ESIO 50.87 0.2 ENTA 27.85 0.6 ENFC 33.05 2.2 ENTG 16.86 2.8 ESQ 52.65 1.2 FARO 180.80 0.1 FB ONEQ 264.97 0.4 32.13 2.1 FBMS 34.87 0.9 FPA 43.90 0.3 SKYY 25.29 0.2 FVC 27.15 0.3 FV 34.35 0.4 TDIV 43.44 -0.7 FEUZ 27.71 0.4 FTAG 57.51 0.5 FJP 63.47 0.7 FNX in bonds, according to its halfyear statement issued in August. It had a 76% debt-to-asset ratio as of last year. A fixture on lists of China’s wealthiest people, Mr. Wang has run into trouble with authorities in recent years. He was one of several dozen deputies from Liaoning province expelled from China’s legislative body last year in a vote-buying scandal. In the U.S., donations he has made have been scrutinized. His construction business, Rilin Enterprises, for instance, gave $1 million to $5 million to the Clinton Foundation since its founding, according to records published by the organization co-founded by former presidential candidate Hillary Clinton. A spokeswoman for Mr. Wang put his total donations to the foundation at around $2 million. Also last year, The Wall Street Journal reported the Federal Bureau of Investigation had examined a $120,000 donation by a U.S. business owned by Mr. Wang to Virginia Gov. Terry McAuliffe. There is no indication that any of the donations was illegal. —Liyan Qi and Grace Zhu contributed to this article. FT MC GrwthAlpha FNY FT MCGrAlpDX FAD FT NasdCleanEdge QCLN FT Nasd100Tech QTEC FT NasdSemicon FTXL FT RBA AmerInd AIRR FT RiverFrDynAP RFAP FT RiverFrDynDev RFDI FT SKoreaAlpha FKO FT TotalUSMkt TUSA Flex FLEX FlexShUSQualLC QLC FormFactor FORM Garmin GRMN GlbXInternetThings SNSR Grifols GRFS H&E Equipment HEES HeritageCommerce HTBK HorizDAXGermany DAX IAC/InterActive IAC II-VI IIVI IPG Photonics IPGP IXYS IXYS IntegratedDevice IDTI Intel INTC IntelliaTherap NTLA InteractiveBrkrs IBKR iSectorsPostMPT PMPT iShAsia50ETF AIA iShCommodSelStrat COMT iShCurrHdMSCIGrmny HEWG 52-Wk % Sym Hi/Lo Chg Stock 38.16 1.0 iShIndia50ETF 63.84 1.0 iShMSCIACWIETF 20.49 1.0 iShMSCIEAFEESGOpt 73.01 0.8 iShPHLXSemicond 31.44 1.6 KuraOncology 26.95 1.2 LGI Homes 60.43 0.3 LKQ 64.28 0.5 LamResearch 28.12 2.7 LeggMasonUSDivCore 31.83 1.2 LendingTree 18.04 -0.4 Littelfuse 32.06 0.3 MAM Software 18.43 1.1 MGPIngredients 57.09 0.2 MKS Instrum 20.00 0.5 Marriott 23.69 5.3 MatchGroup 33.14 0.9 MazorRobotics 15.41 1.9 Medpace 31.55 0.8 MelcoResorts 129.28 1.4 MercerIntl 46.50 2.0 MicrochipTech 219.64 2.5 MicronTech 24.96 -0.2 Mimecast 32.34 7.2 MonolithicPower 45.80 2.5 MonsterBeverage 33.34 8.9 NV5Global 54.16 1.6 Nathan's 27.01 0.7 NationalVision 64.70 0.9 NewaterTech 36.04 0.2 NovaMeasuring 29.51 0.4 Novanta INDY ACWI ESGD SOXX KURA LGIH LKQ LRCX UDBI TREE LFUS MAMS MGPI MKSI MAR MTCH MZOR MEDP MLCO MERC MCHP MU MIME MPWR MNST NVEE NATH EYE NEWA NVMI NOVT MASTERCARD FRANKLIN TEMPLETON Revenue, Profit Beat Analysts’ Estimates Low-Cost Foreign ETFs Are Launched Mastercard Inc. reported its highest revenue jump of the year due to a mix of increased consumer spending, marketshare gains against smaller networks abroad and the continuing shift of payments from cash to cards. Third-quarter revenue rose 18% from a year earlier to $3.4 billion. Analysts polled by Thomson Reuters expected revenue to rise to $3.28 billion. Profit increased 21% to $1.43 billion, or $1.34 a share, from $1.18 billion, or $1.08 a share, a year earlier. Analysts expected Mastercard to earn $1.23 a share. The company also reported higher expenses and raised its expense guidance for 2017. Mastercard expects operating expense growth to be at the top end of the high single-digit-percentage range. That compared with high single-digit guidance at its investor day on Sept. 7. In the third quarter, operating expenses rose 20% from a year ago because of acquisitions and continued investments in new payment technology and other initiatives. Mastercard disclosed separately Tuesday that a potential regulatory fine looms. The company said potential fines tied to European Commission objections to its inter-regional interchange fees could exceed $1 billion, “based upon recent interactions” Mastercard has had with the commission. —AnnaMaria Andriotis and Cara Lombardo Franklin Templeton Investments, a unit of Franklin Resources Inc., announced the launch of 16 ultralow-cost foreign stock exchange-traded funds that will undercut the management fees of nearly every rival product on the market. The new, market-cap weighted ETFs will go toe to toe with entrenched rivals from BlackRock Inc. and other players, the latest example of hypercompetitive pricing to lure assets into new ETFs. The ETFs will begin trading Nov. 6. Franklin’s new ETFs will lower the bar significantly on what investors pay to own baskets of stocks from a variety of regions and countries from Australia to Mexico. A dozen of the new products, including the Franklin FTSE Japan ETF, will carry an expense ratio of 0.09% a year, or $9 for every $10,000 invested. That compares with the 0.48% expense ratio that comes with the $17.4 billion iShares MSCI Japan ETF. Four Franklin ETFs linked to indexes in Brazil, China, Mexico and Taiwan will cost investors 0.19%, significantly cheaper than the largest ETFs in each category. Single-country ETFs are widely used tools for macro portfolio managers and other asset allocators who aim to capture broader regions rather than pick out individual stocks. —Chris Dieterich QILAI SHEN/BLOOMBERG NEWS REUTERS FINANCE WATCH A Mastercard ad in China. The company reported higher expenses. 52-Wk % Sym Hi/Lo Chg Stock 36.17 0.5 NuvNasd100Dyn 70.36 0.3 NVIDIA 67.50 0.4 ON Semi 173.22 0.8 Orbotech 15.70 3.7 OrganicsETF 60.48 2.2 OrthofixIntl 37.72 3.2 PTC 210.09 1.1 Park-Ohio 31.16 1.0 PatrickIndustries 274.40 1.3 Paylocity 212.54 -0.5 PaymentDataSys 9.42 4.4 PayPal 68.43 2.1 PennNational 110.60 2.9 PilgrimPride 119.91 0.8 PinnacleEnt 27.02 2.0 PointerTel 65.97 7.5 PwrShDWAMom 39.64 5.3 PwrShDWA Mom 25.32 6.9 PwrShDWATactical 14.85 3.2 PwrShDynConDis 95.69 -0.4 PwrShDynHlthcr 44.57 6.4 PwrShDynIndls 32.00 2.5 PwrShDynTech 122.17 1.4 PwrShQQQ 1 58.54 1.9 PwrShS&P SmInds 58.95 0.3 PwrShS&P InfTech 81.40 1.9 PrincipalUSSCMulti 29.39 2.7 ProShEquRising 14.87 -4.5 ProShUltPrQQQ 31.69 2.3 PumaBiotech 47.80 1.8 QuinStreet QQQX NVDA ON ORBK ORG OFIX PTC PKOH PATK PCTY PYDS PYPL PENN PPC PNK PNTR DWLV PDP DWTR PEZ PTH PRN PTF QQQ PSCI PSCT PSC EQRR TQQQ PBYI QNST 52-Wk % Sym Hi/Lo Chg Stock 23.65 0.7 RBB Bancorp 207.89 1.5 ROBOGlblRobotics 21.37 1.7 Rambus 45.16 1.3 SBA Comm 32.39 1.6 SelectiveIns 54.33 7.8 Semtech 66.95 0.4 SiliconLab 47.50 3.2 SilvercrestAsset 96.25 0.1 SinovacBiotech 53.49 3.5 Skyworks 2.93 80.2 SolarEdgeTech 72.74 2.0 SterlingCnstr 26.11 2.5 SunHydraulics 31.97 2.2 TPIComposites 26.03 1.0 TabulaRasaHlth 18.95 4.4 TakeTwoSoftware 30.58 0.6 TechTarget 50.85 0.6 TexasRoadhouse 28.38 1.7 TowerSemi 48.81 1.3 UtdCmntyBcp 69.70 1.8 UniversalDisplay 60.90 1.6 UniversalForest 53.71 1.5 UTStarcom 152.37 0.4 VangdRuss1000Grw 62.56 2.1 WintrustFin Wt 81.54 0.6 WintrustFin 30.48 1.4 WisdTrGermanyHdg 43.31 2.3 WisdTrJapanHdgSC 130.55 1.1 Workday 131.00 -0.6 Xilinx 9.38 20.8 Xunlei RBB ROBO RMBS SBAC SIGI SMTC SLAB SAMG SVA SWKS SEDG STRL SNHY TPIC TRHC TTWO TTGT TXRH TSEM UCBA OLED UFPI UTSI VONG WTFCW WTFC DXGE DXJS WDAY XLNX XNET 52-Wk % Sym Hi/Lo Chg Stock 52-Wk % Sym Hi/Lo Chg 25.32 2.0 ZebraTech 117.44 5.0 FlexPharma ZBRA 40.73 1.4 ForwardPharma 14.77 1.7 Fred's 159.14 4.7 GuarantyBcshrs 2.27 -7.5 60.20 2.3 ADMA Biologics ADMA IconixBrand 30.69 0.1 AcadiaHealthcare ACHC 41.40 3.1 InsysTherap 9.88 -0.7 Aceto ACET 95.20 1.6 JMU 1.46 -4.4 AchieveLifeSci ACHV 16.30 1.9 LombardMedical 7.95 -3.6 AduroBiotech ADRO 7.29 1.8 NetSolTech 9.24 -2.7 AlcentraCapital ABDC 114.80 1.7 NovelionTherap AppliedGenetic AGTC 3.40 -8.1 33.35 0.9 NuCana 0.14 0.7 ArgosTherap ARGS 18.48 15.5 ParkerVision AzurRxBioPharma AZRX 2.80 1.0 57.79 2.0 BancFst pf BANFP 26.05 -2.1 ProfDiversity 26.00 4.9 19.52 -0.2 ProShUltraProShQQQ BedBath BBBY 29.55 9.4 Big5SportingGoods 6.25 -9.9 RMG Networks BGFV 110.86 0.9 BorqsTechnologies BRQS 4.00 -8.0 RetailOppor 12.51 1.1 BroadwindEnergy BWEN 2.69 -3.7 SearsHoldingsWt 53.61 -0.8 CapitalaFinance CPTA 8.32 -1.9 SearsHometown 33.30 1.9 Check-Cap 1.25 -9.8 SonomaPharm CHEK 21.10 2.7 ChinaCeramics 1.25 ... SonusNetworks CCCL 149.85 5.7 DHX Media VV DHXM 3.00 8.2 SummerInfant 113.57 4.0 DareBioscience DARE 2.37 -3.8 Teligent 3.20 0.6 DarioHealth 1.58 3.5 Travelzoo DRIO 133.48 0.2 DianaContainer DCIX 0.32 -28.9 Trevena 58.34 6.7 DigitalAlly 1.75 -1.4 trivago DGLY 81.74 1.6 DiscoveryComm A DISCA 18.60 -0.5 VantageEnerA 32.70 0.5 DiscoveryComm C DISCK 17.56 -0.7 VS2xVIXMedTerm 44.76 1.1 DragonVictory 6.65 -1.0 Versartis LYL 111.83 2.4 Egalet 0.97 -2.0 Viacom A EGLT 73.90 0.9 ElbitImaging 2.40 0.3 Vivus EMITF 10.13 -1.0 Essendant 9.25 -1.2 WestmorelandCoal ESND Nasdaq lows - 59 FLKS FWP FRED GNTY ICON INSY JMU EVAR NTWK NVLN NCNA PRKR IPDN SQQQ RMGN ROIC SHLDW SHOS SNOA SONS SUMR TLGT TZOO TRVN TRVG VEAC TVIZ VSAR VIA VVUS WLB 2.68 5.07 4.39 28.16 1.53 4.10 0.95 0.26 3.20 4.70 11.03 1.40 2.59 23.22 1.36 17.87 1.00 1.55 4.22 7.74 1.61 5.56 6.70 1.38 7.25 9.68 10.66 1.70 29.40 0.64 1.68 -1.4 -3.7 -3.5 -0.5 -11.4 -10.3 -5.6 -21.6 -3.0 -3.9 -9.1 -3.3 -8.9 -1.1 -3.2 -1.3 -12.1 -6.1 0.5 -7.0 -4.7 -2.2 -3.6 3.4 -1.5 -0.5 -1.4 -4.0 -0.8 5.6 -12.8 Dividend Changes Dividend announcements from October 31. Company Symbol Amount Yld % New/Old Frq Payable / Record Symbol Amount Yld % New/Old Frq Payable / Record Initial Increased Alliance Holdings GP Alliance Resource Ptrs Brixmor Property Group Chase Corp Cognex Mercury General North Eur Oil Royalty Tr Company AHGP ARLP BRX CCF CGNX MCY NRT 10.6 .735 /.73 Q 10.3 .505 /.50 Q 6.3 .275 /.26 Q 0.7 .80 /.70 A 0.3 .09 /.085 Q 4.5 .625 /.6225 Q 13.2 .22 /.20 Q Nov17 /Nov09 Nov14 /Nov07 Jan16 /Jan04 Dec06 /Nov09 Dec01 /Nov17 Dec28 /Dec14 Nov29 /Nov17 Franklin Lib Int Muni Opp Nuveen EM Debt 2022 RPX .01557 .0435 .05 FLMI JEMD RPXC Nov06 /Nov01 Dec01 /Nov15 Dec05 /Nov20 Funds and investment companies DE Enhncd Glbl Div Inco Delaware Grp Div & Income Delaware Invest Colo Delaware Invest Minn DEX DDF VCF VMM 5.4 4.5 4.5 3.7 .0525 .04 .055 .0425 M M M M Nov24 /Nov09 Nov24 /Nov09 Nov24 /Nov09 Nov24 /Nov09 Company Symbol Delaware Invest Ntl Muni Dreyfus Municipal Income Dreyfus Strat Muni Bond Dreyfus Strategic Munis Franklin Liberty Invt Grd Franklin Liberty Mun Bd Franklin Short Dur US Vanguard Tax-Exempt Bd Wells Fargo Incm Opps Fd VFL DMF DSM LEO FLCO FLMB FTSD VTEB EAD Amount Yld % New/Old Frq 4.5 5.5 5.9 5.9 3.3 1.5 2.4 1.9 8.0 .05 .041 .0415 .043 .06873 .03148 .19498 .08 .05641 M M M M M M M M M Payable / Record Nov24 /Nov09 Nov30 /Nov14 Nov30 /Nov14 Nov30 /Nov14 Nov06 /Nov01 Nov06 /Nov01 Nov06 /Nov01 Nov06 /Nov02 Dec01 /Nov15 Company Wells Fargo Multi-Sector Wells Fargo Utilities Fd Symbol Amount Yld % New/Old Frq Payable / Record ERH 9.9 6.8 .10772 .075 M M Dec01 /Nov15 Dec01 /Nov15 AGN 1.6 .70 Q Dec15 /Nov17 AHC 6.6 .14 ERC Foreign Allergan Special AH Belo A Dec01 /Nov09 KEY: A: annual; M: monthly; Q: quarterly; r: revised; SA: semiannual; S2:1: stock split and ratio; SO: spin-off. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com B16 | Wednesday, November 1, 2017 THE WALL STREET JOURNAL. * *** MARKETS Treasurys Hit Pause As Fed Assembles U.S. government bonds held steady Tuesday as the Federal Reserve’s two-day policy meeting kicked off. The yield on the benchmark 10-year Treasury note closed at 2.374%, the CREDIT same level as MARKETS Monday, notching a second consecutive monthly gain. The yield on Treasurys maturing in two years rose to 1.592% from 1.580%, also capping a secondstraight monthly climb. Yields moved in a narrow range Tuesday as the widely watched central bank meeting began. Officials are likely to leave short-term interest rates unchanged this week, gearing up to consider another rate rise at the next scheduled meeting in December. “We’re hitting a little bit of a pause button,” said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott. Investors also have been watching for clues about who President Donald Trump intends to pick as the next Federal Reserve chairman. Reports in recent days that the president was leaning toward Fed governor Jerome Powell have sparked some buying, as Mr. Powell appears less aggressive about raising rates than some other contenders and could adopt a similar approach to Chairwoman Janet Yellen, some investors said. Recent economic data have painted an optimistic picture of the economy. A gauge of consumer confidence rose near a 17-year high in October, according to the Conference Board. A measure of wages and benefits for workers, known as the employmentcost index, rose a seasonally adjusted 0.7% in July through September, the Labor Department said Tuesday, in line with what economists surveyed by The Wall Street Journal had expected. Still, signs have lingered that inflation remains lower than Federal Reserve officials would like, despite economic growth. Dollar Rises Ahead of Fed Nominee BY DANIEL KRUGER The U.S. dollar edged higher Tuesday, wrapping up its largest monthly advance since November 2016 as consumer confidence rose and investors awaited President Donald Trump’s announcement about the next head of the Federal CURRIENCIES Reserve. The Wall Street Journal Dollar Index, which measures the U.S. currency against a basket of 16 others, gained 0.1% to 87.62. The index has risen for two consecutive months, gaining 2.2% in that time. The dollar’s current price reflects a 70% probability that Mr. Trump will choose Fed governor Jerome Powell, who has worked as an investment banker for Carlyle Group, according to Greg Anderson, a currency strategist at BMO Capital Markets. The market is pricing in roughly 30% odds that former Fed governor Kevin Warsh or Stanford economics professor John Taylor could be selected, he said. The currency would likely weaken should Mr. Powell be tapped for the job, because he is perceived as being less aggressive in tightening monetary policy than other candidates, while it could rise if either alternative is selected, Mr. Anderson said. “Trump has been known to surprise us,” Mr. Anderson said. The central bank is meeting Tuesday and Wednesday to discuss interest rates. Fed officials said last month that they expect to raise interest rates once more this year. VINCENT MUNDY/BLOOMBERG NEWS BY GUNJAN BANERJI Shares of Mondelez, which makes Oreos and Wheat Thins, rose 5.4% after the company reported higher sales and profit. A Mondelez plant in Ukraine. S&P 500 Feasts on Food Stocks BY MICHAEL WURSTHORN Shares of Mondelez International, Kellogg and other food companies helped the S&P 500 edge higher Tuesday, as the index notched its biggest monthly gain since February. Corporate earnings continued to dictate the market’s biggest moves, with companies generally being TUESDAY’S rewarded by MARKETS investors when they beat expectations for the most recent quarter. More than half of S&P 500 companies already have released results, and another big batch is scheduled to report this week, including Facebook on Wednesday and Apple on Thursday. “If Apple looks pretty good after their earnings, it will lift the market higher,” said Chris Bertelsen, chief investment officer of Aviance Capital Partners, an investment firm with $2.2 billion in assets under management. He expects indexes to grind higher through the rest of this year on earnings and data that continue to paint an upbeat picture of the economy. “After that, I’d be DOW Continued from page B1 nies has boosted shares of newer internet companies such as Amazon.com Inc. and stalwarts such as Microsoft Corp. and Intel Corp. in recent sessions. The Nasdaq Composite, which has a heavy weighting of tech stocks, posted its 62nd record close of the year Tuesday—tying 1980 for the most closing highs in a calendar year. Still, if the forces that have disproportionately benefited large U.S. exporters throughout the year reverse course, similar to what happened in the fall of 2015 and in early 2016, stocks could come under pressure. Back then, investors grew increasingly concerned that China’s economy was slowing drastically, sending the Dow industrials tumbling nearly 600 points in a day and oil prices to multiyear lows. But this year’s pickup in global economic growth has been notable, investors and analysts say, because of its breadth and synchronization across regions. All 45 countries tracked by the Organization for Economic Cooperation and Development are on track to post economic growth this year—a feat last accomplished in 2007. The gains, spreading from the U.S. to Germany to areas that had been laggards in recent years, such as Greece and Brazil, have been a boon to multinational firms, which have noted increased demand for their products this earnings season. Shares of Dow component 3M Co., the maker of products including Post-it Notes, Scotch tape and ACE bandages, have risen 29% this year as the firm’s sales have grown across the Americas, Europe and Asia, among other regions. Industrial giant Caterpillar Inc., another member of the Dow, has Throwback The Nasdaq Composite tied the 1980 record for the number of closing highs in a calendar year. 2017 62 records 60 records 50 40 30 20 10 0 1971 ’75 ’80 ’85 ’90 ’95 2000 ’05 ’10 ’15 THE WALL STREET JOURNAL. Source: WSJ Market Data Group surprised if they moved higher.” The S&P 500 gained 2.43 points, or 0.1%, to 2575.26, putting its monthly gain at 2.2%. It was the broad index’s seventh straight month of advances, its longest streak since May 2013. The Dow Jones Industrial Average added 28.50 points, or 0.1%, to 23377.24, while the Nasdaq Composite rose 28.71 points, or 0.4%, to 6727.67, tying its 1980 feat of hitting 62 record closes in a calendar year. Shares of Mondelez, the maker of Oreo cookies, Wheat Thins crackers and Trident gum, gained $2.13, or 5.4%, to $41.43, after the company reported rising sales and a higher profit. Kellogg, meanwhile, beat sales and profit expectations, helped by sales of its Pop-Tarts and Eggo waffles products. Shares of the food company rose 3.66, or 6.2%, to 62.53. Those gains led the S&P 500’s consumer-staples group 0.8% higher. Not all corporate results were upbeat. Under Armour shares slid 3.89, or 24%, to 12.52, after the athletic-wear maker reported its first-ever quarterly sales decline and cut its growth forecasts. Health insurer Aetna fell 1.20, or 0.7%, to 170.03, after it reported a decline in revenue and raised its profit forecast for the year. Chip maker Qualcomm declined 3.65, or 6.7%, to 51.01, after The Wall Street Journal reported late Monday that Apple was considering using only chips from Intel and possibly MediaTek in its iPhones and iPads. Shares of Intel were up 1.12, or 2.5%, to 45.49, while MediaTek rose 8, or 2.4%, to 342.50 in Taiwan. Rockwell Automation surged 13.82, or 7.4%, to 200.82, after the Journal reported the manufacturing-software maker rebuffed Emerson Electric’s takeover bid. Shares of Emerson fell 2.88, or 4.3%, to 64.46. Aside from corporate news, investors said they planned to Banner Month for the Blue Chips A series of strong earnings reports against a backdrop of improving global growth helped the Dow Jones Industrial Average rise further than the S&P 500 in October. Dow Jones Industrial Average 4.3% 5% 4 Performance for October S&P 500 2.2% 3 2 Record closes AUCTION RESULTS Here are the results of Tuesday's Treasury auction. All bids are awarded at a single price at the marketclearing yield. Rates are determined by the difference between that price and the face value. FOUR-WEEK BILLS Applications Accepted bids " noncompetitively " foreign noncompetitively Auction price (rate) Coupon equivalent Bids at clearing yield accepted Cusip number $149,315,993,600 $50,000,401,100 $541,606,600 $0 99.920667 (1.020%) 1.035% 58.49% 912796ME6 The bills, dated Nov. 2, 2017, mature on Nov. 30, 2017. Cut in U.S. Output Buoys Oil Prices BY SARAH MCFARLANE AND ALISON SIDER 1 0 October 6 13 20 27 31 Five stocks accounted for roughly half of the Dow industrials’ point gain in October. In October, the Dow industrials outperformed the S&P 500 by the largest margin in any month since November 2008. 4 percentage points 3M 3 140 points 2 Apple 103 1 UnitedHealth Group 0 99 –1 Caterpillar –2 –3 closely follow President Donald Trump’s announcement of a Federal Reserve chairman, which is expected this week. The Journal reported in recent days that Mr. Trump was likely to nominate Federal Reserve governor Jerome Powell, though the president hadn’t made a formal decision and could still change his mind. Elsewhere, the Stoxx Europe 600 rose 0.3% and ended the month 1.8% higher. Japan’s Nikkei Stock Average was mostly unchanged after falling as much as 0.8% earlier in the session. The Nikkei ended October 8.1% higher, its strongest month in two years. Early Wednesday, it was up 1.2%. —Riva Gold contributed to this article. 76 McDonald’s Monthly 2008 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 THE WALL STREET JOURNAL. Source: FactSet jumped 46%, buoyed by rising demand globally for bulldozers, excavators and other heavy machinery. “We’re seeing broad-based sales increases across a number of industries in all regions,” said Jim Umpleby, chief executive of Caterpillar, on the company’s third-quarter earnings call Oct. 24. As of Tuesday, S&P 500 companies that receive more than half of their revenue from overseas were posting earnings growth of 12.9% for the third quarter from the yearearlier period, according to FactSet, outpacing the 4.2% earnings-growth rate for domestic companies. A weaker dollar also has helped. While the U.S. currency has pared some of its 70 losses in recent weeks, as the passing of budget plans in Congress renewed some investors’ hopes that lawmakers would push through corporatetax cuts, company officials have said the currency’s weakness relative to its peers could boost profits by making their products cheaper for buyers outside the U.S. The WSJ Dollar Index, a measure of the dollar against a basket of 16 other currencies, has fallen 5.7% in 2017. “We are seeing a bit of favorable impact on our real dollar growth from the recent dollar weakening,” said Andrew Campion, chief financial officer at Nike Inc., on an earnings call in September. Some still question how much longer the dollar’s weak- ness can last. The currency has crept higher in recent sessions, which analysts and investors attribute in part to a recent run of upbeat U.S. data that could bolster the case for the Federal Reserve to tighten monetary policy, signs of progress on Republicans’ tax overhaul and weakness in the euro. “I’m still astounded as to how the dollar has behaved this year,” said James Athey, senior investment manager at Aberdeen Standard Investments, which has around $758 billion in assets under management. With the Fed signaling it remains on track to keep raising interest rates, and U.S. economic data largely solid lately, the currency looks “very cheap” relative to its peers, Mr. Athey said. Oil prices continued to hit new multimonth highs Tuesday as a lower-than-expected U.S. production figure helped breathe new life into a rally. U.S. crude futures rose for a fourth straight day, gaining 23 cents, or 0.41%, to $54.38 a COMMODITIES barrel on the New York Mercantile Exchange—the highest since February. Brent, the global benchmark, rose 47 cents, or 0.77%, to $61.37 a barrel on ICE Futures Europe, hitting another oneyear high. Oil prices surged in October, with Brent rising around 8% in the past four weeks to a more than two-year high on Monday, supported by increased talk that members of the Organization of the Petroleum Exporting Countries and other producers, including Russia, would extend production cuts beyond an end date of March 2018. On Tuesday, prices got a jolt after the U.S. Energy Information Administration reported that U.S. crude output edged down in August, falling slightly to 9.203 million barrels a day from 9.234 million barrels a day in July. The final August figure was lower than what the EIA’s weekly data would have predicted, indicating that U.S. producers haven’t been pumping as much oil as some thought. For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com Wednesday, November 1, 2017 | B17 THE WALL STREET JOURNAL. MARKETS Investors Brace for a Rise in U.K. Rates BY MIKE BIRD The Bank of England is expected to raise interest rates for the first time in a decade Thursday, and investors are trying to size up what that means across different markets. What the nine-member monetary-policy committee says about the future of interest rates could move markets sharply, even if the central bank does what is expected, like the European Central Bank did in October. “We could see quite big swings [in markets] this week depending on how they communicate the rate hike,” said Kacper Brzezniak, U.K. fixed-income portfolio manager at Allianz Global Investors. “You’ve Currencies have borne the brunt of shifting expectations for rates, political developments. already got a lot of uncertainty about what comes next.” The overnight index swap curve—a key measure of future interest-rate expectations—has risen to account for the higher rates predicted. However, it is pricing in only one more rate increase in the next five years than it was on Sept. 13, immediately before the BOE hinted that a rate rise would come soon. Investors are split over what guidance the bank will offer on the future path of policy. “We’re not in the ‘one and done’ camp,” said Paul Rayner, head of government bonds at Royal London Asset Management. “We think it’d be very odd if we don’t see a hike on Thursday, followed by some sort of signal that they’d be happy pricing another rate hike by the end of next year.” Since the U.K.’s June 2016 vote to leave the European Email: email@example.com CVS’s Deal For Aetna Gets Pricier Long-term investors tend not to put much weight on daily share-price moves. CVS Health shareholders don’t have that luxury. CVS recently made an offer valued at about $66 billion to acquire health insurer Aetna. Aetna, which reported solid earnings on Tuesday, didn’t address the offer on a conference call with analysts. The approach from CVS makes good strategic sense. Diversification into health insurance is a logical way to repel competitive threats. The trouble is that swallowing a company of Aetna’s heft will be a challenge. CVS boasts an investment-grade credit rating and a fairly strong balance sheet, but an all-cash offer appears unlikely because CVS had about $25 billion in net debt at the end of June. That number is understated because it doesn’t include certain lease obligations. CVS probably needs to use its stock to help get the deal done, yet its shares have weakened. They are down about 15% over the past month and about 6% since news of the Aetna offer broke. That makes things tougher. Assuming a $66 billion offer of half cash and stock, CVS would have had to issue about 412 million shares at the $80 stock price it hit a month ago. That would increase the current share count by about 40%. But the share count increases by about 50% at the current stock price. A stock-price threshold exists where the deal eventually won’t be attractive to pursue. This is one situation in which investors of all time horizons will want to watch price movements carefully. —Charley Grant Union, the currency market has borne the brunt of shifting expectations for interest rates and political developments. Roughly as many speculators are now betting on a fall in the pound as on a rise, according to data from the U.S. Commodity Futures Trading Commission. As recently as April, there were over 100,000 more long than short speculative contracts on sterling—meaning more bearish bets on the currency. If the U.K. central bank surprises markets by holding rates at current levels, some analysts believe positioning could shift back, causing sterling to decline sharply again. BNP Paribas analysts expect the central bank won’t raise interest rates Thursday and forecast the pound will fall back to around $1.25 by the end of March 2018. U.K. government bonds, or gilts, are also priced for a rate increase. Two-year yields climbed sharply in September, back to similar levels recorded just before the EU referendum. Even so, analysts at Barclays regard U.K. government bonds as more overpriced than any other European market, citing the possibility of a disorderly British exit from the EU. U.K. equities have largely followed sterling since the EU referendum. Companies in the FTSE 100 make less than a third of their total revenues in the U.K., according to data provider FactSet. That means that when the pound sells off, the share prices of the companies—denominated in sterling—are prone to rise. However, “weaker sterling will likely fail to support U.K. equities in the period ahead,” said Yianos Kontopoulos, global head of macro strategy at UBS, citing a tipping point at which depreciation causes faster inflation and further rate increases and stops benefiting the FTSE 100. “Too much cumulative depreciation raises uncertainty,” he added. Ready for a Rise Markets have already begun reacting to the Bank of England rate increase that is expected on Thursday. 1.2% Expected U.K. interest rates have moved higher... The sterling overnight index swap curve, one measure of interest-rate expectations, indicates that the Bank of England will still raise rates very slowly. Overnight index swap curve on Oct. 30, 2017 1.0 0.8 Overnight index swap curve on Sept. 13, 2017 0.6 0.4 0.2 0 2018 ’19 ’20 ’21 …while U.S. speculators have vacated bets that the pound will fall. Four-week rolling net long/short noncommercial contracts on the British pound 0 contracts –20,000 –40,000 –60,000 Negative numbers are bets that the pound will fall. –80,000 –100,000 2015 ’16 ’17 Gilt yields are back to levels seen before the EU referendum... 2.0% …and the weaker pound has helped boost share prices. 20% 10-year Change since 2015 Two-year 1.5 10 1.0 0 FTSE 100 Sterling effective exchange-rate index –10 0.5 –20 0 2016 2016 ’17 HEARD ON THE STREET FINANCIAL ANALYSIS & COMMENTARY Samsung Needs to Push Revamp Samsung Electronics’ leaders are passing the baton on to the younger generation, while returning more cash to shareholders. Hopefully, this is the beginning of the end for the technology giant’s old-fashioned corporate governance ways. Samsung said Tuesday that it plans to separate the role of chief executive and board chairman for the first time. It is retaining its slightly odd practice of having three co-chief executives, each running different parts of the company, but now none of them will be chairman. Instead, the company’s chief financial officer, Lee Sang-hoon, will step up to head the board. Moreover, each of the three current co-chief executives will be replaced by younger managers. The hope is that this fresh blood will revitalize the company, which has been embroiled in a leadership crisis ever since its de facto leader, Lee Jae- Fully Charged Net cash at Samsung Electronics 80 trillion Korean won 70 60 50 40 30 20 10 0 3Q 2011 ’12 ’13 ’14 ’15 Note: 1 trillion Korean won = $895 million Source: the company; S&P Global Market Intelligence yong, was convicted in August of bribery. Separating the chairman and chief executive is a good, albeit small, step toward better corporate governance. More can be done. In particular, Samsung’s board could use more independent directors that might better represent external shareholders, especially foreign ’16 ’17 THE WALL STREET JOURNAL. investors, who together now own more than half of the company. Samsung’s crop of independent directors are all Korean men, including a former bank CEO and a publichealth professor. In another move toward better governance, Samsung is also promising much higher dividends; the plan is to increase them by 20% this ’17 THE WALL STREET JOURNAL. Sources: Bank of England (interest rates); FactSet (contracts, indexes); Tradeweb (yields) year and double them next year. The implication is that Samsung has scrapped its policy of keeping an unnecessarily large cash buffer of 65 trillion to 70 trillion won ($58 billion to $62 billion). Samsung also could try harder to slim down its network of cross-shareholdings. The company owns stakes in a shipbuilder and a hotel chain among other assets. Such cross-shareholdings, common among Korea’s biggest corporations, are a big factor that has long dragged down their valuations. Samsung, for example, is the world’s biggest chip maker, yet trades with an enterprise value of just 3.8 times its expected earnings before interest, taxes, depreciation and amortization. Apple, by contrast, trades at about 10 times. As Samsung upgrades its technology, it needs to keep upgrading its corporate structure, too. —Jacky Wong WSJ.com/Heard OVERHEARD Timing is everything on Wall Street, even for those who analyze stocks rather than trade them. Brian Skorney, biotechnology analyst at Robert W. Baird, initiated coverage on Voyager Therapeutics on Monday with a “buy” rating and $31 price target just moments after the stock closed at $22.73. The happy mood was short-lived. Voyager announced that Sanofi had declined to exercise its option to acquire commercial rights to its experimental drug for Parkinson’s disease right after Mr. Skorney’s note was published. Voyager’s shares plunged. Mr. Skorney may yet be vindicated, and the bad luck hasn’t squashed his sense of humor. In response to an email asking if he would rather have released his note on Tuesday, Mr. Skorney replied, “Nope, it came out at the right time. Just really bad timing.” As Startups Stay Private, Questions Arise Over Valuations There are lots of good reasons for startups to stay private, and no one knows that better than Julie Wainwright. She is the founder of RealReal, a successful closely held online retailer that has gone through seven rounds of funding. Ms. Wainwright was also the CEO of Pets.com, which shut down when the cash ran out in November 2000, seven months after going public. The flood of cash into startups has allowed companies to stay private for far longer than in the past. On the positive side, companies have more time to develop and grow. But the lack of a public market valuation also raises the question of whether many companies are Old Tech Median age of technology company initial public offerings 15 years 10 5 0 1990 ’95 2000 ’05 ’10 ’15 Source: Jay Ritter worth the $1 billion-plus values private investors have attached to them. A lot of richly valued startups are so old that saying they need time to develop and grow is a bit of a joke. Ride-hailing service Uber Technologies, which is valued at $68 billion, has been around for over eight years. Big-data analysis firm Palantir Technologies, valued at $20 billion, is 13 years old. Space Exploration Technologies, the Elon Musk-led rocket maker valued at $21 billion, is 15 years old. It was different in the dotcom era. Then, companies had fewer funding rounds and went public quickly. The 371 technology companies that had initial public offerings in 1999 had a median age of four years, according to data compiled by University of Florida finance professor Jay Ritter, versus a median age of 10.5 years for 2016’s 20 tech IPOs. The rush was part of what created problems later. Once companies went public, it wasn’t easy for them to raise more cash. RealReal is a study in contrasts with Ms. Wainwright’s former business. The San Franciscobased online upscale-goods reseller has been able to get the cash it needs to fund six years of operations. What hasn’t changed, she says, is that private-market valuations may not reflect the valuations companies carry in the public markets. (Unlike many of its peers, RealReal has remained mum on its valuation.) Multiple funding rounds, each at a higher valuation, can exacerbate the problem, widening the gap between private-market belief and public-market reality. In the private market, pessimists sit out funding rounds, leav- ing optimists to do the buying; in the public market, the pessimists could sell or short the shares, driving down the share price. With all that money riding on them, companies may be scared to go public during less-than-perfect market conditions, worried that they will end up like food company Blue Apron Holdings. It was valued at $2 billion before going public this June and now has a market capitalization of less than $1 billion. Yet right now, with the U.S. economy in the ninth year of an economic expansion and the stock market clocking fresh highs, is the perfect time to go public. What are they waiting for? —Justin Lahart For personal non-commercial use only. Do not edit or alter. Reproductions not permitted. To reprint or license content, please contact our reprints and licensing department at +1 800-843-0008 or www.djreprints.com THE WALL STREET JOURNAL. B18 | Wednesday, November 1, 2017 Fellow ADP Shareholder: Pershing Square made a $2.3 billion investment in ADP because we believe it is a good business that can be substantially improved. In an evolving industry, ADP must adapt quickly to avoid losing ground to more innovative competitors. ADP’s current plan calls for more of the same. If elected, our plan is to increase eﬃciency, improve customer service, and invest in technology to help ADP reach its full potential and greatly enhance value for all shareholders. All three independent proxy advisory ﬁrms support Pershing Square’s views and the election of Bill Ackman to ADP’s board Glass Lewis & Co. Institutional Shareholder Services Egan-Jones “ “ “ Upon a successful implemen- tation of Pershing Square’s plan… Ackman would bring a strong understanding of the company, with We believe that Pershing Square’s nominees will reinforce we believe ADP would likely deliver the resources and analytical ability superior ﬁnancial performance and that his ﬁrm has demonstrated while addressing operational ineﬃciencies, signiﬁcantly greater shareholder value. digging deeply into ADP’s business, strengthen corporate governance We recommend that shareholders asking valid questions, presenting and unlock ADP’s potential in order vote FOR all nominees on the GOLD detailed data, and proposing solutions. to maximize shareholder value. proxy card. ” the Board and management in His real estate background could also be helpful at this point in the com- ” pany’s life cycle, given ADP’s ongoing initiatives to rationalize its footprint. ” Vote GOLD to help ADP achieve its full potential ADP shareholders have an opportunity to vote for transformational change at ADP by electing three highly-qualiﬁed and experienced directors. Help ADP reach its full potential and enhance value for all stakeholders by voting today FOR The Nominees for ADP’s Transformation by using the GOLD Proxy Card or GOLD Voting Instruction Form. Vote Learn more about our plan to transform ADP during a public webcast for shareholders on Wednesday, November 1, 2017, at 10:00 AM EDT at www.ADPascending.com.