close

Вход

Забыли?

вход по аккаунту

?

The Wall Street Journal November 01 2017

код для вставкиСкачать
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 wsjcontact@wsj.com 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: wsj.ltrs@wsj.com
NEED ASSISTANCE WITH YOUR SUBSCRIPTION?
By web: customercenter.wsj.com; By email: wsjsupport@wsj.com
By phone: 1-800-JOURNAL (1-800-568-7625); Or by live chat at wsj.com/livechat
REPRINTS & LICENSING
By email: customreprints@dowjones.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.
Passing the test of time and surpassing the definition of beauty, the Argento Byzantine
The classic Byzantine
Necklace is perfect for the lady who apchain pattern has stood
preciates fine art. And, priced for
the test of time for over
those who appreciate a fine value.
What our Italian jewelry expert
2,500 years
Daniele Zavani is saying about the
The difference between priceless & overpriced. High-end
Raffinato™ Argento Necklace:
design should not carry a high
Bellissimo!
price just because it comes
Stupendo!
from a big name retailer, where
you’ll find a similar necklace
going for four times as much. We
prefer to keep our costs low so we
can bring you the very best in Italian
design at a cutting edge price.
Masterpiece, not mass produced. It takes months
to create just one of these necklaces which means we have a select number available.
No questions asked, 30-day money back guarantee. We want you glowing with satisfaction. You have nothing
to lose, except the opportunity to own a masterpiece. Call today!
D
Magnifico!
Raffinato™ Argento Byzantine Necklace
Stunningly affordable
Also available
at
$79 + S&P
Raffinato™ Agento Byzantine Bracelet
Stunningly well-priced
$39 + S&P
• Made in Arezzo, Italy • .925 sterling silver • 18" necklace; lobster clasp
Call today. There’s never been a better time to let your elegance shine.
1-888-444-5949
Offer Code: RFC215-01. You must use the offer code to get our special price.
Raffinato
™
Europe Awaits Persuasive
Signals of Rising Inflation
BY PAUL HANNON
The Argento Byzantine Necklace
is an impeccable work of art with
a price unmatched by any in its class.
14101 Southcross Drive W., Dept. RFC215-01, Burnsville, Minnesota 55337
www.raffinatoitaly.com
A collection of impeccable design & craftsmanship from Italy.
immediate prison for the former Catalan leaders if they
didn’t appear before the court
when ordered to do so.
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.”
anne.kadet@wsj.com
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 | sales.mart@wsj.com
© 2017 Dow Jones & Company, Inc.
All Rights Reserved.
!
%)-( ( % )-
% )- "# $$ %&'
% )
"# $$ %&'
% ' %
' &4 &
&4 & /
(800) 366-3975 | sales.showroom@wsj.com
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 wsj.ltrs@wsj.com. Please
include your city and state. All letters
are subject to editing, and unpublished
letters can be neither acknowledged nor
returned.
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.
?
$
?'
.,
I
# 00 ?@
$ ?'
.,
' $ ''
& ' $ )*+/ + ,@
# # # $ * 9 $ " &
'
# $ $ @
& @
' " '
9 $ " @
# $ $' '@
'
$ & $ @
@ ' & '
@
''
1 @
$ '
1 # '
# # $
& $ ## @
' + & $ & 1 # # @
& $
&
# $ % ' # & 1 & $' &
'+ '
@
# &
'' A
$+ & ' $
&
' #
@
'
$ & $ ##
' ' ' J
#
# & 20474G 3 ,00 0
5# ,
&
,
% $' #
$
%# $ & ' )* + ( '
+ )
'
$ L 4 " $$ + ) , ) ,
)* 4 " %./ $
&
1 5, $ ' 1 @
) ) $
!"@
% )
)
)
2 , ) & !0 & 3 A@
'1 @ ( 0?
!,? & ?1 %# ' $ ?3
& #
# 1 $ '@
# )3 )5, % & ( A & , '
& '
1 $
& $ $ 42(1 C0 ) #1
& ''
2 #
/.. '@
#' & F/4G747GB-B
!3! ,,! ..?.> < # & , #
%%% '#'
?
, ?
,
?
,
'
)
'
& + # "
& $ $$
$ )*+ + !+ ' !+ $ & - " $$ - " ,
)*+ - " %.$% / C0 '@
" 1 $ C0
1 & C@
% 2 )*+ 4 " %.$%
/ C0 & 1
$ "
& '
$ 1 <1 & E".0" 2 #
/..%%%'
'.
..##
' % & 678894- ;< '= & ;# = !3!
ATWATER, Calif.—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
sales.realestate@wsj.com
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.
To advertise: 800-366-3975 or WSJ.com/classifieds
BANKRUPTCIES
!" #$$%
&'( )*'')
&+ ," , ) * - ) ) * -
*)' .)'/ #/ 01% 2) ' #'% ! 345 ,67 # *( *)) 8* '* '* 01% ) #''%
" # ! 345 ,6,7 # *( *)) 8* '* '* 0'4+ $*1%, &+ ,"
, 95+4( + ) ) #'% :'/ '4+ $* 4''/
0);+ '8*'1 ++ 95+4( ) $4' ,< #''% ''/ ='/ 4)
='/ )' ) ) #'''% :'/ 4)+ 8 '4''/ 4':'/ ) +'/
: ) 8 2'/ >4' ) #':% :'/ * ) 8* 8 4
' '4 345 ,67 # 0'4+ $* )1% 95+4( + +;+(
) ) )>+'/ 2*' .'/ ) ) ) &+( ,6 , 345 ,7 +/+ , , 345 !7 ) 4 " , 345 !7
'4''/ 444 8 8* .)
8 '* - ') : 95+4( + 4 42* ) ')
.) 8 '* ) ;+'( '8 ' ' 44) ( ) 8 -') ' *+
) * 8 ' +* 8 '* ' 4 *') - : ) '8 -' '2 '4 ;+'* 8 95+4( ) $4' ,"#% 8 ;
+'' 444 ') 95+4( + *( 42* '8 ' 2)
#% :') 8' ) ;+' * ) ) +8'( )'4'*' /'
4 >4'/ ) #% -' '2 ;+'* 8 95+4( ) $4'
,"#% 8 ' 42*) ( 95+4( + ' -' ')'/ .) 8 '*
) ;+'( - '4+ .) :) 82*':( :) >4 2*' .'/ 4') 42*' 8 -' 4**4 !" #$! %! &' () *+ 8 .
+' $ $':' ?') $ 95+4( &+)/ ' ?') $ 95+4(
+ 8 ''4 8 - 4) ,6 5 $ @ A +* , '*'/
- " 2*' .'/ *( 4'+) 8* '* '* ( 95+4(
+ -'+ 8+ '4 ( +4 )>+* '/ +4) ' 4+ ( '4 8 )>+* 2) -' 95+4( + ) :) +4 ' 95+4( + *( ) : *( *)'2) *)) '8 4( ++
95+4( ) $4' , ' )+'/ + 8 2*' .'/ -'+
8+ '4 ' ' '
, -- .- 44)4 -' 95+4( ) $4' ,, ) ,! 4* 4'8(
'/ .) 8 '* ) ;+'( ' :'+ 8 + '4+)'/ -' 4
:'/ 8-
/01$2 !$#$
$$1#
.%$!" "3$#
''( '*
?'*') *) 44
$4+) '*
?'*') *) 44
$4+) B '*
?'*') *) 44
'' )' /* '* #$4+) '% *')
') =
C ?4+) '*
*')
') =
4*( '*
*')
*) 44
) *')
*) 44
) * ?'*') *) 44
, ='/ 4) ='/ 4) ' 41! *+) *+ ='/ 4) ' )
( -'4 ' -' )*') -'4 .) 8 '* ' 6 ) < ') : ! ='/ )' ))' 8 :'/ ' 5 !" #$! %!
%' *6) *+ # 0.%$!" 7 !1% 8 (+ ) '* /' * 8 8 ='/ 4) ) ') : 44 >4 (+ +) : 4':)
9 ) 4)'/ :'/ '+4' A (+ : 4+) (+ *+ #% 8- +4
:'/ '+4' 48+( #% 4* ;+') '8*' 9D ) #4% '/ )
) + (+ 4*) 9 ' ' &$1 2 &7 ( ='/ ) '* / 44)
'/ ) 8 ' )' ' :'/ '+4' 8 ='/ )'
6 *( -4 8 '* 8 ='/ + ( .) 8 '* /' 8
-'4 : 2) >4' 8 41! *+) *+ - +4 >4' ) ' 4'* ' 8 ') : ) 4+) '
)*''/ - ;+'* 8 95+4( ) $4' ,@#4% : * -' 4
( .) 8 6 < '* /' 8 -'4 +4 .) 2) 8
8 4'* -'4 ' - ' E4 +';+')) 4'/ 4'* ) -'4 ' +>4
>4' 2) ( : ' ' 4'* *'( -) 8 :'/ +
( ) 8 + 8 -4 )''+' F 8 ( +4 .) 8 6 <
'* )4') ' ' / 6 )'/ -' G 4'24' + 8 ' '*
+4 .) ?$
2 -' 95+4( + ) : + '4 ' ') -
8 8 !" #$! %! %' **) *+ # 0+' )'1%
*' ;+'/ *( -4 8 ' '* ( 8 :'/ + ' 44)4 -'
95+4( + ! #+4 *' 0
*( -4 '1% ='/ ) '* /
-' ) +4 .) $'4'' 45/ '4+)'/ ' ) )))
/ ') : -'4 +4 .) *+ + ' 44)'/ '+4'
4) ' ' &$1 2 &7 ( ='/ ) '* / 8 ='/ )
' ):') : 8 ' '/ ) >4' /)'/ ( ) *( -4 ' *( 2) -' 95+4( + ) )''+' 8 $'4'' 45/ ' ) 4'+ -': 8 +4 '/ ) >4'
, -- 4- H A . $ $ H?
&?
=$$ .?$
I? =$ = $ . A?I 9?$ I? C.
$ C.
9 AA
.?
< >4' )' ))' 8 2'/ >4' ' %' *6) *+ $
8 !" #$! # 0 >4' )'1%
@ >4' ( >4' *+ #'% ' -''/D #''% 4*( -' 95
+4( + ) 4 +D #'''% 8 * 8 >4 ) *+ ) + 8
'* ' ) ( >4 /' ' D #':% -' '4+'( / ) 84+ 8 >4'D ) #:% 2) 4*+( -' 8 8 :'4
-' 95+4( + ) :) ' ' &$1 2 &7 >4'
)' ( ' ') - # 0'4 '1% A
9&
$ I
A $= . $
A
. . I 9 $ 9I . 9J
?
I ?
I 9 =? .?
A?
. $ % #% + * K 5' < ') :+ - I5 I5 ,, # J' $'* ; ) *' = '( ;% ) '4) ( K A'/ )( $;+ ", J'/ $ '*'/ - " # & . J'/ ;
) + . ;%D #% + )*''': / 8 G '' $4+)
A'4'/ '5 -) .)( K 4( , '( $ - I5 - I5 < #
& 9' ; ) &88( ( ;%D #4% + ) .4 C+ 8 ) ?) G '' $4+) A'4'/ ) ) ?) G '' $4+) A'4'/
$45 K $45 K : ') - I5 - I5 ! # &(* C)'
; ) & 2) ;% ) I+/ -( $/ K ( )( $;+ J'/ $ '*'/ - " # )* ; ) - 9 +
;%D ) #)% 824 8 ?') $ + 8 ''4 8 - 66 J'/ $ $+'
,, '*'/ - " # . +8 4+* ;%
,
''/ $'4'' ' 8 (+ -+) '5 ' $'4'' 45/ '8 (+ :
;+' /)'/ 4)+ ) ;+'* 8 >4'/ (+ *( 44 G ='/ ) '* / '* 5 ( #'% 4'/ G +4+'/ '
# 66% @6 <@<!D #''% :'''/ G +4+'/ -' LL4'*454*L
)*D )L #'''% -''/ ) * 4L '* 5 ! !) :+ !) A
- I5 I ,, I+ *( ' 4' 8 ( )'/ 2) ' 4 4 8
8 :' LL---)+4+/: 8 8 4/ LL4'*454*L
)* ):') ='/ ) '* / ' +'M) - ;+'
) :') ))'' 4' 8 '4'' *' + *( ):' (+ - (+ +)
: 44 >4 A''/ $+* -' 2 $+* 8- 8+
#6% )( ' >4' )' ) -' : $+* ' : 2) ;+ 8 '4 ' ++ 95+4( + ,, 8 +4
2'/ ) ) +4 ' )'4) ( + ++ '4+ $* ) ' 8 $+* *( ') ' * 8 ' / :
" . $ $ H?
&?
=$$ . =$$
$
A
. . A .$ I? $.? = .$ =$$ A?I
'*'/ - :* ,
, 9 ) J' $'* *' = '( < ') :+ - I5
- I5 ,,6 !6 AB ,,<6 @6 ) ) 9 -) ) & .
J'/ + . ; )( $;+ ", J'/ $ '*'/ -
" AB !,@< ) :) 4 . H =$ A .$ ?C $
A $ H?
&?
=$$ . $ =9 . 9
$G $
?
?C
9$
.
LL$$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 ' - I5
4 4) @ 6,) $ $+' <!<
- I5 I @< +) :'' 8
$4' @<#4% 8 - I5 95'/
- ? 4*' 8 +'
) 4)+4) 8*
.9G 824 ) ';+'' -'
4 -')'/)- 8 .9G I5 824 +) )'4) $() '8
.+' ,,<<<6
THEMART
ADVERTISE TODAY
(800) 366-3975
sales.mart@wsj.com
© 2017 Dow Jones & Company, Inc.
All Rights Reserved.
LEGAL
NOTICES
ADVERTISE TODAY
(800) 366-3975
sales.legalnotices
@wsj.com
For more information
visit wsj.com/classifieds
© 2017 Dow Jones & Company, Inc.
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. Earn more than $500,000?
Legal, simple tools cut your taxes now. Strategies
previously reserved for the mega-wealthy now at your
fingertips. No obligation. No gimmicks. Don’t wait till it’s
too late. To get your FREE guide simply
text "TaxCut" to (323) 870-1040
$1,000,000 YEARLY-$5000 DAILY
FDA & Medicare Approved
Medical Equipment/Device.
Extremely Large Passive Income.
Locations and Financing Available
Call Sean Kelly 800-284-9060
THE
MART
ADVERTISE TODAY
(800) 366-3975
sales.mart@wsj.com
For more information visit:
wsj.com/classifieds
© 2017 Dow Jones & Company, Inc.
All Rights Reserved.
e-Ex-distribution. f-Previous day’s quotation. g-Footnotes x and s apply. j-Footnotes e and s
apply. k-Recalculated by Lipper, using updated data. p-Distribution costs apply, 12b-1. rRedemption charge may apply. s-Stock split or dividend. t-Footnotes p and r apply. v-Footnotes
x and e apply. x-Ex-dividend. z-Footnote x, e and s apply. NA-Not available due to incomplete
price, performance or cost data. NE-Not released by Lipper; data under review. NN-Fund not
tracked. NS-Fund didn’t exist at start of period.
Fund
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: heard@wsj.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.
Документ
Категория
Журналы и газеты
Просмотров
1
Размер файла
10 578 Кб
Теги
The Wall Street Journal, newspaper
1/--страниц
Пожаловаться на содержимое документа